AFRICAN DAWN ANNUAL REPORT 2018 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2018 85 Collateral The following collateral is held as security: 2018 2017 Group ‘000 Carry amount Security held Carrying amount Security held Trade receivables for which collateral is held 5,679 5,679 8,690 8,208 The company did not hold any collateral in 2018 or 2017. Amount of impairment for each class of financial asset: Group R’000 Amount of impairment 2018 Amount of Impairment 2017 Trade and receivables (refer to Note 10) 9,288 20,602 9,288 20,602 Company R’000 Amount of impairment 2018 Amount of Impairment 2017 Loans to Group companies (refer to Note 9 for reconciliation) 58,186 51,706 58,186 51,706 Trade and other receivables - impairment reconciliation Group 2018 2017 R’000 R’000 Opening balance 20,602 18,934 Plus additional impairment allowance 5,398 4,442 Less actual write off against impairment allowance (16,712) (2,774) 9,288 20,602 The company does not have an allowance for impairment. Analysis of financial assets Trade receivables are grouped in terms of the accounting policy into: - Current receivables - includes debtors that are paying within their credit terms as well as those that are up to 75 days overdue where after they are transferred to the collections book. - Collection receivables - debtors remain in collections and will move through the ageing brackets with provisions recognised at varying percentages until they are 180 days overdue at which point they are fully written off unless: * The debtor was previously written off because it was sequestrated or deceased; or * The debtor was transferred to the legal book. - Legal receivables - includes debtors transferred from the collections book when the debtors have the following legal status: * A debt pack has been signed that would lead to an emolument attachment order; or * The debtor is placed under administration; or * The debtor is placed under debt review. Elite has specific percentages that are used to calculate the provision based on the ageing of the debtors. These are outlined below: Current receivables – 0% progressing to 30% and then, if required, transferred to the collections book; Collections receivables - 20% (2017: 45%) progressing to 90% and then, if required, either written off or transferred to the legal book; Legal receivables - 15% progressing to 90% and then written off if required (2017: 30% to 90%)
AFRICAN DAWN 2018 Annual Report
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