AFRICAN DAWN ANNUAL REPORT 2017 Notes to the Financial Statements Annual Financial Statements For the year ended 28 February 2017 continued Non-current Liabilities Group Company 2017 2016 2017 2016 R’000 R’000 R’000 R’000 At amortised cost 6,316 7,829 - - 6,316 7,829 - - Current Liabilities At amortised cost 9,475 12,524 - - 9,475 12,524 - - 15,791 20,353 - - (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 17 for further details. (B) The loan bore no interest in 2015 and was therefore present valued such that R75,764 deemed interest was recognised over the life of the loan. R43,447 of this has been recognised in 2015, leaving a balance of R32,317 that was recognised in 2016. (C) The loan bore no interest in 2015 and was therefore present valued such that R493,992 deemed interest will be recognised over the life of the loan. R66,155 of this has been recognised in 2015, leaving a balance of R427,837 recognised in 2016 as the loan started to attract market related interest. 65 16. Finance lease liabilities Group Company 2017 2016 2017 2016 R’000 R’000 R’000 R’000 - Within one year - 19 - - - in second to fifth year inclusive - - - Total - 19 - - less: future finance charges - - - - Present value of minimum lease payments - 19 - - Non-current liabilities - - - - Current liabilities - 19 - - - 19 - - It is group policy to lease certain motor vehicles under finance leases. The average lease term is 1-5 years and the average effective borrowing rate is 11% (2016: 11%) Interest rates are linked to prime at the contract date. All leases have fixed repayments and no arrangements have been entered into for contingent rent. The group’s obligations under finance leases are secured by the lessor’s charge over the leased assets. As the lease has been settled the vehicles are no longer security on the loan, Refer to note 3.
AFRICAN DAWN 2017
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