15 Cash and cash equivalents
|
|
2022 |
|
2021 |
|---|---|---|---|---|
|
|
|
|
|
Deposits |
|
23 |
|
318 |
Money-market funds |
|
1,493 |
|
- |
Cash at bank and in hand |
|
1,221 |
|
1,243 |
Payments in transit |
|
18 |
|
- |
Total |
|
2,755 |
|
1,561 |
Deposits will be classified as ‘cash equivalent’ if held at banks with a maturity of less than three months at inception. Deposits will be classified as ‘current investments’ if the maturity is more than three months but less than or equal to one year.
Money-market funds investments have been placed with institutions with a high credit rating in line with our counterparty policy.
The purpose of the deposits and money-market funds is either to meet short-term cash commitments, or to manage liquidity to such an extent that yields are optimized, while allowing DSM sufficient freedom in fulfilling its (strategic) goals.
Cash at year-end 2022 was not being used as collateral and therefore was not restricted (same as in 2021).
In a few countries, DSM faces cross-border foreign exchange controls and/or other legal restrictions that limit its ability to make these balances available at short notice for general use by the group. The amount of cash held in these countries was €105 million at year-end 2022 (2021: €87 million). The cash will generally be invested or held in the relevant country and, given the other liquidity resources available to the group, does not significantly affect the ability of the group to meet its obligations.
For more information regarding the counterparty policy, see Note 23 Financial instruments and risks.
