Financial review Summary annual financial statements continued Notes to the summary financial statements continued for the year ended 31 March 2023 5. Liquidity management Guarantees The group is exposed to credit risk relating to guarantees it provides to MultiChoice Group Treasury Services Proprietary Limited (Treasury) for the various facilities that Treasury has with local and international nancial institutions. The group stands as a guarantor for these facilities and is liable for the full facility utilisation amount in the event of default. Treasury, in turn, bene ts from the guarantee provided as it is able to negotiate favourable terms on the facilities it enters into on behalf of the MultiChoice Group. The risk of default attributed to Treasury is based on the depletion of cash resources within the MultiChoice Group Limited and MultiChoice SA Holdings Proprietary Limited entities it manages cash on behalf of. In management’s assessment of the risk of default, it was necessary to assess the level of cash resources within these entities. The outcome was that at an overall MultiChoice Group Limited consolidated level, suf cient cash resources are available at reporting date as well as in the forecast periods. Therefore a remote risk of default exists in respect of these facilities. Management further assessed the potential impact of default by applying various credit metrics such as loss given default, exposure at default and probability of default to year-end and future anticipated exposures on short and long-term debt facilities, current foreign exchange exposures and bank guarantees. Phuthuma Nathi Investments (RF) Limited Integrated annual report 2023 76
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