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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.
| |
Group |
Company |
| |
31 March
2026
Rm |
31 March
2025
Rm |
31 March
2026
Rm |
31 March
2025
Rm |
| Cash and cash equivalents |
7 723 |
11 054 |
4 937 |
8 989 |
| Cash and bank balances |
2 822 |
6 312 |
458 |
4 898 |
| Short-term deposits |
4 901 |
4 742 |
4 479 |
4 091 |
|
|
|
|
|
| Undrawn borrowing facilities |
6 422 |
6 546 |
6 250 |
5 250 |
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 2026, R5 672 million (31 March 2025: R4 796 million) of these undrawn facilities were committed by the banks. The uncommitted portion of R750 million (31 March 2025: R1 746 million) is subject to bank approval. Cash and cash equivalents decreased mainly due to the utilisation of the proceeds from the disposal of Swiftnet. These proceeds were applied towards the repayment of interest-bearing debt and the distribution of special dividends to shareholders.
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. |
