| 4. | Working capital | |||||||||||||||||||||||||||||||||||
| 4.4 | Cash and cash equivalents | |||||||||||||||||||||||||||||||||||
Summary of material accounting policies Cash and cash equivalents comprise cash on hand, deposits held on call and short-term deposits with an initial maturity of less than three months when entered into.
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 2024, R4 billion (31 March 2023: R2.27 billion) of these undrawn facilities were committed by the banks. The R1 563 million uncommitted portion is subject to bank approval. Undrawn borrowing facilities increased due to the committed facilities of R2 billion utilised in the prior year and repaid with new long-term facilities in the current year and an additional new facility of R1 billion in current year. 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. |
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