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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 2016 2015 6. Investments in subsidiaries (continued) Investment reconciliation R ‘000 R ‘000 Carrying amount at the beginning of the year 15,877 8,601 Additional investment Knife Capital Group (refer to note 32) - 12,555 Present value adjustments on loans (refer to note 26) - 2,710 Impairment of investment in subsidiaries - (2,710) Impairment of Investment in Candlestick Park Investments Proprietary Limited - (5,279) 15,877 15,877 The carrying amounts of the subsidiaries are shown net of impairment losses. The carrying amounts of investments in subsidiaries were reassessed for impairment at year end and the impairment indicated above was recognised. The impairments arose as a result of the present value adjustments on loans which were debited to the investment in the related subsidiary and an impairment to the value of the property. Reporting period The end of the reporting period of Elite Cell is 31 March 2016. It was impracticable to obtain financial statements as at 29 February 2016 because the company is controlled by companies with a March year end. No significant transactions took place between the reporting period of February 2016 and the year end of March 2016. Subsidiaries for which control was lost during the year The group lost control of Nexus Personnel Finance 2 Proprietary Limited and African Dawn Property Transfer Finance 5 Proprietary Limited on 24 January 2015. Both companies were dormant shelf companies that were deregistered by CIPC. In addition Nexus went into liquidation on the 18th October 2014, a gain has been included in other income (refer to note 23). For details on the deconsolidation refer to note 33. 7. Other financial assets Group Company 2016 R’000 2015 R’000 2016 R’000 2015 R’000 Loans and receivables Elite Cell 312 724 - - A cell captive agreement was entered into with Guardrisk Group (Pty) Ltd (“Guardrisk”) that allows trade debtors to insure their loans against death, disability and retrenchment. It is in a closed cell that does not share risk. Current assets Elite Cell 312 724 - - Elite Cell is as subsidiary of Elite. The cash in Elite Cell can only be accessed by submitting a claim to Guardrisk or by Elite Cell declaring a dividend. AFRICAN DAWN ANNUAL REPORT 2016 67


AFRICAN DAWN Annual Report 2016
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