Page 110 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15))
Annual Financial Statements for the year ended 31 March 2024
Notes to the Financial Statements (continued)
31. Risk management (continued)
Liquidity risk
The entity’s exposure to liquidity risk is minimal as it is 100% funded by the Department of Economic Development, Tourism and Environmental Affairs. The annual budgets are approved at the beginning of each fiscal year and draw-down as requested at the beginning of each quarter. Cash flows are monitored monthly against budgets and adjustments are made where necessary. Risk management assessments are conducted annually to assist with identifying any possible cash flows, liquidity or other risks.
The table below analyses the entity’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
Figures in Rand
2024
2023
At 31 March 2024
Trade and other payables from exchange transactions
Trade and other payables from non-exchange transactions
Subtotal
At 31 March 2023
Trade and other payables from exchange transactions
Trade and other payables from non-exchange transactions
Subtotal
Credit risk
Less than Between 1 1 year and 2 years 2 678 890 -
41 912 -
2 720 802 -
2 720 802 -
Less than 1 Between 1 year and 2 years
5 564 850 - 44 743 -
5 609 593 -
5 609 593 -
Between 2 and 5 years
Over 5 years -- --
--
--
Total
2 678 890
41 912
2 720 802
2 720 802
Total
5 564 850
44 743
5 609 593
5 609 593
Between 2 and 5 years
Over 5 years
- -
- -
- -
- -
Credit risk refers to the risk that a counterpart will default on its contractual obligations resulting in financial loss to the entity. Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors.
Other receivables comprise a widespread counterbase. Credit exposure is controlled by the application of the entity’s credit control and debt collection policies.
There has been no significant change during the financial year, or since the end of the financial year, to the entity’s exposure to credit risk, the approach of measurement or the objectives, policies and processes for managing the risk. The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the entity’s maximum exposure to credit risk.
Potential concentration of credit risks consists principally of other trade receivables and short-term cash investments. At year end management did not consider the entity to have significant concentration of credit risk other than short-term investment held with the bank.
Financial Instruments
Trade and other receivables from exchange transactions Trade and other receivables from non-exchange transactions Cash and cash equivalents
1 128 245 45 500 4 229 862 5 403 607
182 590
360 795 35 881 457 36 424 842
ANNUAL REPORT 2023/2024 108