BT 2015 Annual Report Download - page 192

190 BT Group plc
Annual Report 2015
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he followin table provides an analsis of the contractuall areed cash ows in respect of the roups derivative financial instruents. ash ows
are presented on a net or gross basis in accordance with the settlement arrangements of the instruments.
Derivatives – Analysed by earliest payment dateaDerivatives – Analysed based on holding instrument
to maturity
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At 31 March 2015
Net settled
£m
Gross settled
outows
£m
Gross settled
inows
£m
Total
£m
Net settled
£m
Gross settled
outows
£m
Gross settled
inows
£m
Total
£m
Due within one year 215 1,421 19 344 88 1,320 119 229
Between one and two years 471 39  484 109 42 0 121
Between two and three years 273 38  285 92 42 0 104
Between three and four years 177 38  189 94 42 0 106
etween four and five ears 48 838 9 137 111 842  200
fter five ears –390 9  690 476 91 675
7RWDOb       
Derivatives – Analysed by earliest payment dateaDerivatives – Analysed based on holding instrument
to maturity
At 31 March 2014
Net settled
£m
Gross settled
outows
£m
Gross settled
inows
£m
Total
£m
Net settled
£m
Gross settled
outows
£m
Gross settled
inows
£m
Total
£m
Due within one year 263 1,754 10 311 125 1,754 10 173
Between one and two years 351 661 19 393 84 560  119
Between two and three years 642 947 90 685 84 950 90 126
Between three and four years 70 806 1 55 84 65 1 88
etween four and five ears – 334  7 84 369 1 92
fter five ears –198 1 12 865 1,002 100 865
7RWDOb       
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balance sheet date.
Credit risk management
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he roups eposure to credit ris arises fro financial assets transacted b the treasur operation priaril derivatives investents cash and
cash equivalents) and from its trading-related receivables.
or treasur-related balances the oards defined polic restricts eposure to an one counterpart b settin credit liits based on the credit
ualit as defined b oods and  and b definin the tpes of financial instruents which a be transacted. he iniu credit ratins
peritted with counterparties in respect of new transactions are  for lon-ter and 11 for short-ter investents. ction is taen
where appropriate and cost eective if counterparties in respect of eistin transactions fall below the peritted criteria.
The treasury operation continuously reviews the limits applied to counterparties and will adjust the limit according to the nature and credit
standing of the counterparty and in response to market conditions, up to the maximum allowable limit set by the Board.
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he roups credit polic for tradin-related financial assets is applied and anaed b each of the lines of business to ensure copliance. he
polic reuires that the creditworthiness and financial strenth of custoers is assessed at inception and on an onoin basis. aent ters
are set in accordance with industry standards. Where appropriate, the group may endeavour to minimise risks by requesting securities such as
deposits, guarantees and letters of credit. The group takes proactive steps including constantly reviewing credit ratings of relationship banks
to iniise the ipact of adverse aret conditions on tradin-related financial assets.
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he aiu credit ris eposure of the roups financial assets at the balance sheet date is as follows
At 31 March Notes
2015
£m
2014
£m
erivative financial assets 1,329 653
Investments 22 3,567 1,808
Trade and other receivablesa16 2,264 2,185
Cash and cash equivalents 23 434 695
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