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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued 7. Investment in associate (continued) Elite Two committed to repaying: • The capital and interest on the R10 million bond; and • A portion of the initial and additional loans made to Elite Two together with interest thereon. • The total amount owed was R16 837 065. • Certain debtors (to the value of R14 337 165) were ceded to Sandown as payment of this amount and a balance of R2 499 900 was still owed by Elite Two. • With regard to the R14 337 165, Elite or Elite Two will pursue claims against those debtors. This will be done in Sandown’s name and the costs of the legal proceedings will be shared by Elite and Sandown. (refer to note 39). If at least R10 million of this amount is collected, Elite will be paid a fee of 50% of the excess collected. • With regard to the R2 499 900, this amount plus R100 for the Elite Two shares is to be repaid in monthly instalments between November 2014 and March 2016, by Elite. Provided the payment terms are complied with, no interest will be levied. As the interest rate is not market related the loan has been discounted. Refer to notes 28 and 17, “Sandown Capital Elite Two loan”. In terms of the settlement agreement, Elite obtained control of Elite Two with effect from November 2014. It has therefore been equity accounted from March 2014 to November 2014 (during this period a loss of R2,259,181 was recognised). Subsequently Elite Two became a subsidiary and was consolidated thereafter. Elite Two Summarised financial information of associate Summarised Statement of Profit or Loss and Other Comprehensive Income 2015 R’000 AFRICAN DAWN 77 ANNUAL REPORT 2015 2014 R’000 2013 R’000 Revenue 1,531 7,844 2,605 Other income and expenses (1,763) (6,214) (767) (Loss) / profit before taxation (232) 1,630 1,838 Taxation expense - (463) (512) (Loss)/profit (232) 1,167 1,326 Total comprehensive (loss) / income (232) 1,167 1,326 Summarised Statement of Financial Position Assets Non-current - - - Current - 24,705 11,961 Total assets - 24,705 11,961 Liabilities Non-current - 19,149 10,386 Current - 405 - Total liabilities - 19,554 10,386 Total net assets - 5,151 1,575


AFRICAN DAWN 2015 Annual Report
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