Notes to the Financial Statements continued 2015 2014 6. Investments in subsidiaries (continued) Investment reconciliation R ‘000 R ‘000 Carrying amount at the beginning of the year 8,601 8,601 Additional investment Knife Capital Group (refer to note 37) 12,555 - Present value adjustments on loans (refer to note 11) 2,710 - Impairment of investment in subsidiaries (2,710) - Impairment of Investment in Candlestick Park Investments Proprietary Limited (5,279) - 15,877 8,601 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. No impairments were deemed necessary in 2014. AFRICAN DAWN 75 ANNUAL REPORT 2015 Reporting period The end of the reporting period of Elite Cell and Elite Two is 31 March 2015. It was impracticable to obtain financial statements as at 28 February 2015 because both companies were previously controlled by companies with a March year end. No significant transactions took place between the reporting period of February 2015 and the year end of March 2015. 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 25). For details on the deconsolidation refer to note 38. 7. Investment in associate Company 2015 % Ownership Interest 2014 % Ownership Interest 2013 % Ownership Interest 2015 Carrying amount 2014 Carrying amount 2013 Carrying amount Name of company Elite Two 100.00 % - % - % - 2,259 787 The Company's principal - - - place of business and incorporation - South Africa - 2,259 787 Elite Two prior to February 2015 In 2011, Elite entered into a management agreement with Sandown in respect of a company called Elite Two. The purpose of the agreement was to allow Elite to make use of a funding line, to earn a management fee, to share in the returns of Elite Two and therefore to continue to grow its business during the recapitalisation of the Afdawn Group.
AFRICAN DAWN 2015 Annual Report
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