Interfront 2023 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2023 126 INTERFRONT ANNUAL REPORT 2023 Notes to the Financial Statements  Risk management (continued) Figures in Rand 2023 2022 Financial assets exposed to credit risk at year end were as follows: Financial instrument 2023 2022 Cash and cash equivalents 52 158 925 57 724 100 Receivables from exchange transactions 11 294 635 4 188 003 Market risk Interest rate risk The entity’s interest rate risk arises from amounts held in short‑term cash balances. The entity’s income and operating cash flows are substantially independent of changes in market interest rates in relation to these balances. Cash flow interest rate risk Financial Instruments and Other Current interest rate Due in less than a year Due in one to two years Due in two to three years Due in three to four years Due after five years Receivables from exchange transactions 11.25% 11 294 635 – – – – Cash in current banking institutions 11.25% 52 158 925 – – – – Payables from exchange transactions 11.25% 16 663 770 – – – – Operating lease obligation 11.25% 4 570 748 2 930 969 2 459 465 – – Foreign exchange risk The entity provides services to one international customer and is exposed to foreign exchange risk arising from currency exposures, primarily with respect to the euro. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities. The entity does not currently hedge foreign exchange fluctuations. Foreign currency exposure at statement of financial position date Current assets Receivables from exchange transactions (amount in EURO) – 74 167 Exchange rates used for conversion of foreign items were: EURO 16.17