Notes to the consolidated annual financial statements l Note 21

21 Net cash and cash equivalents   Group     Company  
    2017 
Rm 
    2016 
Rm 
    2017 
Rm 
    2016 
Rm 
 
Cash disclosed as current assets   1 612        2 548        965        2 222    
     Cash and bank balances     953        418        388        167    
     Short-term deposits     659        2 130        577        2 055    
Credit facilities utilised     (93)       (6)       (3)       –    
Net cash and cash equivalents     1 519        2 542        962        2 222    
      4 750        6 450        4 750        5 250   

Undrawn borrowing facilities
The undrawn borrowing facilities are unsecured and bear interest at a rate that will be mutually agreed between the borrower and lender at the time of drawdown. These facilities are subject to annual review and are in place to ensure liquidity. At 31 March 2017, R4 billion (2016: R4 billion) of these undrawn facilities was committed. There is no restriction on cash.

Short-term deposits
Short-term deposits are made mostly for varying periods of between one day and three months, depending on the immediate cash requirements of the group, and earn interest at the respective short-term deposit rates.

Borrowing powers
Telkom's directors may mortgage or encumber Telkom's property or any part thereof and issue debentures, whether secured or unsecured, whether outright or as security for debt, liability or obligation of Telkom or any third party. For this purpose the borrowing powers of Telkom are unlimited, but are subject to the restrictive financial covenants as well as specific restrictive clauses in the current funding arrangements.


Notes to the consolidated annual financial statements l Note 21