Tesco 2004 Annual Report Download - page 45

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TESCO PLC 43
NOTE 21 Financial instruments continued
Analysis of interest rate exposure and currency of Þnancial assets
The interest rate exposure and currency proÞle of the Þnancial assets of the Group at 28 February 2004 were:
2004 2003
Cash at Cash at
bank and Short-term bank and Short-term
in hand deposits Other Total in hand deposits Other Total
£m £m £m £m £m £m £m £m
Sterling 517 161 112 790 213 55 109 377
Other currencies 153 269 4 426 186 184 370
Total Þnancial assets 670 430 116 1,216 399 239 109 747
Other Þnancial assets, in respect of amounts owed by undertakings in which the company has a participating interest, attract a
rate of interest based on LIBOR plus a margin (2003  5%). Surplus funds are invested in accordance with approved limits on
security and liquidity and bear rates of interest based on relevant LIBOR equivalents. Cash at bank and in hand includes non-
interest bearing cash and cash in transit.
Borrowing facilities
The Group has the following undrawn committed facilities available at 28 February 2004 in respect of which all conditions
precedent had been met at that date:
2004 2003
£m £m
Expiring within one year 133 75
Expiring between one and two years 920 756
Expiring in more than two years 305 552
1,358 1,383
The facilities expiring within one year are annual facilities subject to review at various dates during the year ending 26 February
2005. All facilities incur commitment fees at market rates and would provide funding at ßoating rates.
Currency exposures
Within the Group, the principal differences on exchange arising, which are taken to the proÞt and loss account, relate to purchases
made by Group companies in currencies other than their reporting currencies. After taking account of forward currency purchases
used to hedge these transactions, there were no signiÞcant balances on these exposures at year end. Also, rolling hedges of up
to 18 months duration are maintained against the value of investments in, and long-term intercompany loans to, overseas subsidiaries
and, to the extent permitted in SSAP 20, differences on exchange are taken to the statement of total recognised gains and losses.
Fair values of Þnancial assets and Þnancial liabilities
2004 2003
Book value Fair value Book value Fair value
£m £m £m £m
Primary Þnancial instruments held or issued to Þnance the Groups operations:
Short-term borrowings (844) (852) (1,341) (1,341)
Long-term borrowings (4,346) (4,407) (4,034) (4,279)
Short-term deposits 430 430 239 239
Cash at bank and in hand 670 670 399 399
Derivative Þnancial instruments held to manage the interest rate and currency proÞle:
Interest rate swaps and similar instruments (195) 94
Forward foreign currency contracts (13) 1
(4,090) (4,367) (4,737) (4,887)