AFRICAN DAWN ANNUAL REPORT 2017 Notes to the Financial Statements Annual Financial Statements For the year ended 28 February 2017 continued 57 Company Name of company % voting power 2017 % voting power 2016 Nature Carrying amount 2017 Carrying Amount 2016 ABC Cashplus (Randburg) Proprietary Limited 100 % 100 % Dormant - - ABC Cashplus Financial Services Proprietary Limited 100 % 100 % Dormant - - African Dawn Debt Management Proprietary Limited 100 % 100 % Dormant - - African Dawn Kwazulu Natal Proprietary Limited 100 % 100 % Dormant - - African Dawn Property Transfer Finance 1 Proprietary Limited 100 % 100 % Bridging Finance - - African Dawn Property Transfer Finance 2 Proprietary Limited 100 % 100 % Bridging Finance - - African Dawn Social Education Proprietary Limited 100 % 100 % Dormant - - African Dawn Wheels Operations Proprietary Limited 100 % 100 % Dormant - - African Dawn Wheels Proprietary Limited 100 % 100 % Vehicle finance - - Albistar Investments Proprietary Limited 100 % 100 % Dormant - - Almika Properties 81 Proprietary Limited 100 % 100 % Property holding - - Amalgum Investments 138 Proprietary Limited 100 % 100 % Dormant - - Bhenka Financial Services Proprietary Limited 100 % 100 % Dormant - - Candlestick Park Investments Proprietary Limited 100 % 100 % Property holding - - Elatiflash Proprietary Limited 100 % 100 % Dormant - - Elite Group Two Proprietary Limited * 100 % 100 % Unsecured lending - - Elite Group Cell No, 00181 Proprietary Limited 100 % 100 % Life insurance - - Elite Group Proprietary Limited 100 % 100 % Unsecured lending 3,322 3,322 Grindstone Accelerator Proprietary Limited * 100 % 100 % Consulting - - Knife Capital Proprietary Limited 100 % 100 % Venture Capital 12,555 12,555 Yuediligence Proprietary Limited 100 % 100 % Consulting - - 15,877 15,877 Testing for impairment The investments in subsidiaries are tested for impairment by analysing each investment as a Cash generating unit (“CGU”) using the following assumptions: The recoverable amount of the CGUs has been determined based on value-in-use calculations. These calculations use pre- tax cash flow projections based on financial budgets approved by management covering a six-year period in line with the carried interest cycle. Cash flows beyond the six-year period are extrapolated using the estimated growth rates stated below: The growth rate does not exceed the long-term average growth rate for the business in which the CGU operates. The key assumptions, long term growth rates and discount rates used in the value-in-use calculations are as follows: Assumptions Note Knife Capital Grindstone Compounded annual revenue increase % 1 17% 6% Compounded annual total operating costs increase % 2 -5% 5% Pre-taxation discount rate 32% 25%
AFRICAN DAWN 2017
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