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AFRICAN DAWN ANNUAL REPORT 14

Notes to the Financial Statements continued Group Company 2014 2013 2014 2013 R '000 R '000 R '000 R '000 6. Loans to (from) group companies continued Loans to group companies impaired As of 28 February 2014, loans to group companies of R 97,367,338 (2013: R 102,757,250) were impaired and provided for. The amount of the impairment was R 50,893,577 as of 28 February 2014 (2013: R 53,735,250). The creation and release of allowances for impairments of loans have been included in operating expenses. All intercompany loans are unsecured with no fixed terms of repayment. The loan balances have been assessed for recoverability and the impairment allowances were made accordingly. The R 39,5 million indicates the fair value of the intercompany loans. The maximum exposure to credit risk as at the reporting date is the fair value of each class of loan mentioned above. Intercompany loans receivable are classified as loans and receivables. Intercompany loans payable are classified as liabilities at amortised cost. 7. Other financial assets Receivables Elite Rustenburg Mines Purchaser - 938 - - Non-current assets Loans and receivables - 638 - - Current assets Other Receivables - 300 - - - 938 - - Other financial assets in the current year have been allocated to Non-Current Assets held for sale as they relate to the Elite Group Proprietary Limited company that is being disposed of. The subsidiary "Elite Rustenburg Mines Proprietary Limited" was sold in the 2011 financial year for a total of R1,223,000 repayable at R25,000 per month. The outstanding balance is recoverable by way of a renegotiated settlement agreement, stipulating renegotiated repayment terms with additional security for Afdawn. The amount does not attract interest. Receivables are subsequently measured at amortised cost. The effective market rate of prime was used. The balance was evaluated for impairment and the security held has sufficient value to cover the outstanding balance. The security on the receivable is an unsecured debtors book that is being collected by Elite and all collections are to the benefit of Elite. The loans are assessed for recoverability on a monthly basis by the credit committee, and impairments are made accordingly. AFRICAN DAWN 5 1 ANNUAL REPORT 2014


AFRICAN DAWN ANNUAL REPORT 14
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