Page 85 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Notes to the Financial Statements

For the Year Ended 31 March, 2021 cont’d

10. Cash and Cash Equivalents
2021 2020
N'000 N'000
Cash and cash equivalent consist of:
Cash on hand 5,708 4,660
Bank balances * 20,009,479 9,621,425
Short-term deposit ** 243,247 2,688,583
Expected credit loss (3,041) (2,263)
20,255,393 12,312,405

Cash and cash equivalent is reconciled to
the cash flow statement as follows:
Cash and cash equivalent 20,255,393 12,312,405
Bank overdraft - (2 956,986)
20,255,393 9,355,419

* Bank balance as at 31 March, 2021 includes an amount of N 1.493 billion (2020: N7.324 billion) representing the CBN
mandatory deposit for foreign exchange bidding to be held by CBN for a maximum of 14 days. These deposits bear no
interest.
** Short term deposits represent temporary excess of liquidity invested in low-risk short-term bank deposits with a maturity
not exceeding 365 days. Included in the short-term deposits is unclaimed dividend returned by the Company's Registrar in
line with the Securities and Exchange Commission directive.

There are no material difference between the fair value and the carrying amount of cash and cash equivalent.

11. Borrowings
2021 2020
N'000 N'000
Held at amortised cost
secure
Bank loan * 60,484,793 55,336,988
Overdraft ** - 2,956,986
60,484,793 58,293,974

Split between non-current and current portions

Non-current liabilities 22,544,629 26,770,433
Current liabilities 37,940,164 31,523,541
60,484,793 58,293,974

** Bank loans and overdraft are secured by legal mortgage over company's property, plant and equipment, all assets' debenture,
and corporate guarantee of Pivot Engineering Limited. The import finance facilities are secured by consignment of shipping
documents for the raw material and corporate guarantee of Pivot Engineering Limited.
** Bank overdraft represents the First Bank of Nigeria Limited advised overdraft line obtained to support working capital with an
agreed interest rate of 9% per annum.
The fair value of current borrowings equals their carrying amount, as the impact of discounting is not significant.

86 HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 World of Possibilities