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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued Group Company 2015 R’000 2014 R’000 AFRICAN DAWN 102 ANNUAL REPORT 2015 Elite Two 2015 R’000 2014 R’000 In November 2014 the Group acquired 100% of the shares in Elite Two which resulted in the Group obtaining control over Elite Two. Prior to this the Group had significant influence over Elite Group Two Proprietary Limited and it was equity accounted (refer to the judgement disclosed in note 1.20 and to note 7). Elite Two is principally involved in the unsecured lending industry. Elite Two was equity accounted in the previous period and was deemed to be disposed of in November 2014 at which point the fair value and carrying amount of the net assets were both nil. There was therefore no gain or loss on the step acquisition. Fair value of net assets acquired Trade and other receivables (A) 714 - - - Cash and cash equivalents 3 - - - Current account Elite (396) - - - Current tax payable (4) - - - Trade and other payables (317) - - - Goodwill - - - - The revenue included in the consolidated statement of comprehensive income since 1 March 2014 contributed by Elite Two was R201 218 and the loss that was contributed was R678 880. Had Elite Two been consolidated from March 2014 to November 2014, the consolidated statement of comprehensive income would show pro-forma revenue of R1 732 710 and loss of R701 738. This excludes the equity accounted loss of R2 259 181 recognised by the Group from 1 March 2014 to October 2014. (A) The fair value of trade receivables is R714 480. The gross contractual amount for trade receivables due is R1 659 995, and an existing provision of R539 478 has been netted off that resulting in a balance of R1 120 517 of which of R406 037 is expected to be uncollectible. Cashflows The cash flow related to Knife Capital Group and Elite Two acquisitions was R16,000 calculated as follows: Cash effect of acquisitions Cash and cash equivalents Knife Capital Group 26 - - - Bank overdraft Knife Capital Group (13) - - - Cash and cash equivalents Elite Two 3 - - - 16 - - - 37. Business combinations (continued)


AFRICAN DAWN 2015 Annual Report
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