Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 157
2020
Rm
40
17
–
17
57
17
91
183
Long-term receivables relating to indirect subsidiaries
Sasol Foundation Trust
Sasol Khanyisa Warehousing Trust
Amounts reflected as current assets
Other receivables relating to direct subsidiaries
Sasol Investment Company (Pty) Ltd
Sasol Oil (Pty) Ltd
–
1
Sasol South Africa Limited
–
6
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
2021
Rm
Sasol Chemicals North America LLC
Sasol Financing USA LLC
Other
–
42
195
18
246
20
304
498
Short-term payables relating to direct and indirect subsidiaries
3
3
Sasol South Africa Limited
13
22
Sasol Chemicals North America LLC
28
–
11
2
168
–
57
193
Sasol Holdings Netherlands B.V.
Sasol Chemicals (USA) LLC
Other
NOTES TO THE FINANCIAL STATEMENTS
Other receivables relating to indirect subsidiaries
An analysis of other related party transactions is provided in:
Note 6 – Long-term financial liabilities
Note 12 – Remeasurement items affecting operating loss
23 Financial risk management and financial instruments
The company is exposed in varying degrees to a variety of financial instrument related risks. Refer to note 40 in the consolidated
financial statements for more information.
Credit risk
Credit risk, or the risk of financial loss due to counterparties not meeting their contractual obligations. Credit risk is deemed to be low
when based on the forward available information it is highly probable that the customer will service its debt in accordance with the
agreement throughout the period.
How we manage the risk
The risk is managed by review of credit status, credit limits and other monitoring procedures. Where appropriate, the company
obtains security in the form of guarantees to mitigate risk. Counterparty credit limits are in place and are reviewed and approved
by management prior to granting credits. Management has evaluated counterparty risk and does not expect any treasury
counterparties to fail in meeting their obligations. The company’s maximum exposure is the outstanding carrying amount of the
financial asset.
SASOL LIMITED COMPANY
Introduction
For all financial assets measured at amortised cost, the company calculates the expected credit loss based on contractual payment
terms of the asset. The exposure to credit risk is influenced by the individual characteristics, the industry and geographical area
of the counterparty with whom we have transacted. Financial assets at amortised cost are carefully monitored and reviewed on a
regular basis for expected credit loss and impairment based on our credit risk policy.
Expected credit loss is calculated as a function of probability of default, loss given default and exposure at default. The company
determines the probability of default based on the forward-looking external information such as chemical prices and exchange
rates and internal information such as budgets and customer financial profile analysis. Loss given default is based on the Basel
model. The Basel model assumes 40% loss given default for secured financial assets and 50% for unsecured financial assets. Credit
enhancement is only taken into account if it is integral to the asset. Financial assets’ expected credit loss is measured over 12 months
when the credit risk is low and over lifetime where the credit risk has increased. When the financial asset reflects impairment
indicators such as fair value of the asset being less than the carrying amount, or the customer is in liquidation, a specific expected
credit loss is calculated based on management's view of what is considered as less probable to be received. Refer to note 40 “credit
risk” in group financial statements.
Credit risk is the risk of financial loss due to counterparties not meeting their contractual obligations. Credit risk is deemed to be low
when, based on the forward available information, it is highly probable that the customer will service its debt in accordance with the
agreement throughout the period.
155
Sasol Annual Financial Statements 2021
OTHER
A credit rating of 'BB' to 'BB-' is assigned to long-term receivables measured at amortised cost.