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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued 44. Risk management (continued) AFRICAN DAWN 119 ANNUAL REPORT 2015 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 47. Collateral The following collateral is held as security: Group R’000 2015 2014 Carrying amount Security held Carrying amount Security held Trade receivables for which collateral is held 11,972 9,361 12,200 9,664 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 2015 Amount of impairment 2014 Trade receivables (refer to note 12) 64,325 102,313 Other financial assets (refer to note 8) 462 462 75,309 113,297 Company R’000 Amount of impairment 2015 Amount of impairment 2014 Loans to group companies (refer to note 11 for reconciliation) 47,527 50,894


AFRICAN DAWN 2015 Annual Report
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