Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 158
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2
3
4
SASOL LIMITED COMPANY
Notes to the financial statements continued
23 Financial risk management and financial instruments continued
2021
2020
Life time
Rm
12 months
Rm
Expected
credit loss
Rm
Life time
Rm
12 months
Rm
Expected
credit loss
Rm
7 746
–
–
126
1
1
7 872
1
1
7 746
–
–
140
1
3
7 886
1
3
7 746
128
7 874
7 746
144
7 890
Long-term receivables*
Other receivables
Cash and cash equivalents
* An internal valuation of Sasol South Africa Limited performed in the prior year, resulted in the Sasol Khanyisa Fundco long-term receivable carrying
amount being higher than its fair value. As a result, a specific expected credit loss of R7,7 billion was recognised at 30 June 2020. The valuation at
30 June 2021 has increased due to economic recovery and an increase in chemical prices and demand for products, however due to the uncertainty
over the timing and extent of the continued price recovery, a reversal of the prior year specific expected credit loss was not recognised.
Liquidity risk
The company has provided guarantees for the financial obligations of subsidiaries and joint ventures. The outstanding guarantees at
30 June 2021 are provided in note 6.
The maturity profile of the undiscounted contractual cash flows of financial instruments at 30 June were as follows:
Note
Contractual
cash flows*
Rm
Within
one year
Rm
One to
five years
Rm
More than
five years
Rm
8
58 149
366
1 370
–
–
366
1 370
–
–
–
–
8
58 149
–
–
59 893
1 736
–
58 157
2021
Financial assets
Non-derivative instruments
Investment in security
Long-term receivables
Other receivables
Cash
1
4
5
Financial liabilities
Non-derivative instruments
Trade and other payables
Financial guarantees¹
8
6
Note
(135)
(116 718)
(135)
(116 718)
–
–
–
–
(116 853)
(116 853)
–
–
Contractual
cash flows*
Rm
Within
one year
Rm
One to
five years
Rm
More than
five years
Rm
8
60 054
498
5 756
–
–
498
5 756
–
–
–
–
8
60 054
–
–
66 316
6 254
–
60 062
2020
Financial assets
Non-derivative instruments
Investment in security
Long-term receivables
Other receivables
Cash
1
4
5
Financial liabilities
Non-derivative instruments
Trade and other payables
Financial guarantees¹
8
6
(372)
(200 193)
(372)
(200 193)
–
–
–
–
(200 565)
(200 565)
–
–
* Contractual cash flows include interest payments.
1 Issued financial guarantee contracts are all repayable on default, however the likelihood of default is considered remote. Refer to note 6.
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Sasol Annual Financial Statements 2021