Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk
In addition to the tables below, see Note 4 to the unaudited condensed consolidated financial statements for a discussion of market risk.
We have short-term borrowings which attract interest at rates that fluctuate based on changes in the South African prime interest rate. The following table illustrates the effect on our annual expected interest charge, translated at exchange rates applicable as of September 30, 2021, as a result of changes in the South African prime interest rate, assuming hypothetical short-term borrowings of ZAR 1.0 billion as of September 30, 2021. The effect of a hypothetical 1% (i.e. 100 basis points) increase and a 1% decrease in the South African prime interest rate as of September 30, 2021, are shown. The selected 1% hypothetical change does not reflect what could be considered the best or worst case scenarios.
Table 10
As of March 31, 2021
Annual expected interest charge
($ ’000)
Hypothetical change in interest rates
Estimated annual expected interest charge after hypothetical change in interest rates
($ ’000)
Interest on South Africa overdraft (South African prime interest rate)
4,631
1%
5,293
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