| 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 2025, R4.8 billion (31 March 2024: R4 billion) of these undrawn facilities were committed by the banks. The uncommitted portion of R1 746 million is subject to bank approval. Cash and cash equivalents increased mainly due to the proceeds received from the disposal of Swiftnet. Refer to note 12.2 for details. Short-term deposits Short-term deposits are made mostly for periods ranging from one day to 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, subject to permitted encumbrance undertakings, as outlined in its financing agreements, may mortgage or encumber Telkom's property, or any part thereof, and issue debt, whether secured or unsecured, either outright or as security for other debt, liability or obligation of Telkom or any third party. For this purpose, the borrowing powers of Telkom are unlimited, but are subject to compliance with the financial covenants set forth in its financing agreements. |
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