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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 90 ANNUAL REPORT 2015 17. Borrowings (continued) Loan Balance Present Value adjustment (refer to notes 25 and 28) 2015 R’000 2014 R’000 Deemed Interest Balance COMPANY 2015 R’000 National Housing Finance Corporation (“NHFC”) - Loan Guarantee (D) The loan is unsecured, interest free and is to be repaid by 30 September 2015 1,750 (92) - 1,658 1,750 (92) - 1,658 Loan Balance Present Value adjustment Deemed Interest Balance COMPANY 2014 R’000 Convertible Bond - Liability portion of compound instrument - STRB Lewende Trust - The conversion period is 36 months from date of issue, conversion price R0.14, Interest levied at JIBAR on 3 month discount + 600 basis points. Refer to note 19 for further details. The bond has no further security beyond the issue of ordinary shares in Afdawn. The bond was settled for cash during the 2015 financial year. 1,663 - - 1,663 1,663 - - 1,663 Non-current liabilities At amortised cost 13,758 8,844 - - Present value and interest adjustments (460) - - - 13,298 8,844 - - Current liabilities At amortised cost 17,874 26,902 1,750 1,663 Present value and interest adjustments (92) - (92) - 17,782 26,902 1,658 1,663 31,080 35,746 1,658 1,663 (A) The Sandown Convertible bond was renegotiated and in terms of the new agreement, there is no conversion element and the balance was split into 2 loans, “Sandown Capital Proprietary Limited” and “Sandown Capital interest portion of loan”. Sandown Capital Proprietary Limited refers to the original capital advanced and Sandown Capital interest portion of loan being the capitalised interest on the original loan. The original terms of the agreement were a conversion period of 36 months from date of issue, conversion price of R 0.14, interest levied at JIBAR on 3 month discount +600 basis points. The bond arose as part of the recapitalisation and rights issue in 2011. Refer to note 19 for further details. (B) The loan bears no interest and has therefore been present valued such that R75,764 deemed interest will be recognised over the life of the loan. R43,447 of this has been recognised in 2015, leaving a balance of R32,317 to be recognised in the future.


AFRICAN DAWN 2015 Annual Report
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