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AFRICAN DAWN Annual Report 2016

continued Notes to the Financial Statements Annual Financial Statements For the year ended 29 February 2016 37. Risk management Risk (continued) Credit risk Maximum exposure The amount that best represents the group’s maximum exposure to credit risk is as follows: • Granting of loans and receivables to customers and other parties - the maximum exposure to credit risk is the carrying amount of the related financial assets. (I.e. net of any impairment losses recognised in accordance with IAS 39). • Placing deposits with banks - the maximum exposure to credit risk is the carrying amount of the related financial assets. • Granting financial guarantees - the maximum exposure to credit risk is the maximum amount the group could have to pay if the guarantee is called on, which may be significantly greater than the amount recognised as a liability or contingent liability. The maximum exposure as a result of such contracts is disclosed in note 34. Collateral The following collateral is held as security: Group R’000 2016 2015 Carrying amount Security held Carrying amount Security held Trade receivables for which collateral is held 6,199 5,971 11,972 9,361 The company did not hold any collateral in 2015 or 2014. Amount of impairment for each class of financial asset: Group R’000 Amount of impairment 2016 Amount of impairment 2015 Trade receivables (refer to note 11) 18,934 66,489 Other financial assets (refer to note 7) - 462 18,934 66,951 Company R’000 Amount of impairment 2016 Amount of impairment 2015 Loans to group companies (refer to note 10 for reconciliation) 49,340 47,527 AFRICAN DAWN ANNUAL REPORT 2016 101


AFRICAN DAWN Annual Report 2016
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