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AFRICAN DAWN Annual Report 2016

Notes to the Financial Statements Annual Financial Statements For the year ended 29 February 2016 10. Loans to/(from) group companies (continued) Group Company 2016 R’000 continued 2015 R’000 2016 2015 2016 R’000 2015 R’000 Movement in impairment Opening balance 49,149 50,894 Increase in impairment 1,500 16,474 Reversal of impairment (1,309) (271) Reversal of Nexus loan impairment on liquidation - (17,948) 49,340 49,149 All the loans are unsecured, interest free and have no fixed terms of repayment. * The loans have been sub-ordinated to the extent that the subsidiaries’ liabilities exceed the assets in favour of other creditors of the subsidiaries for as long as the subsidiaries’ liabilities exceeds the assets. Current assets - - 26,723 26,896 Current liabilities - - (6,929) (6,932) - - 19,794 19,964 As of 29 February 2016, loans to group companies of R77,521 million (2015: R78,753 million) were impaired and provided for. The amount of the impairment was R49,340 million as of 29 February 2016 (2015: R49,149 million). 2016 R’000 2015 R’000 2016 R’000 2016 R’000 Loans to group companies impaired 11. Trade and other receivables Trade receivables 53,865 101,925 - - Impairment allowance (18,934) (66,489) - - Deposits 293 276 31 31 VAT 145 373 - - Other receivables 612 3,750 76 1,065 35,981 39,835 107 1,096 Refer to note 37 for a detailed analysis of the trade receivables. Certain trade receivables are used as security on related borrowings from the National Housing Finance Corporation (“NHFCE”). Refer to note 15. AFRICAN DAWN ANNUAL REPORT 2016 73


AFRICAN DAWN Annual Report 2016
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