AFRICAN DAWN ANNUAL REPORT 2018 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2018 38. Commitments Minimum lease payments due 2018 2017 - within one year 441 762 - in second to fifth year inclusive 189 320 90 Operating leases – as lessee (expense) 630 1,082 Operating lease payments represent rentals payable by the Group for certain of its office properties. Leases are negotiated for an average term of three years with an option to extend. No contingent rent is payable. 39. Events after reporting period Reversal of acquisition of SME Snapshot Shareholders are hereby advised that on 22 May 2018, the Company and YueDiligence entered into a further sale and settlement agreement with SME Snapshot, the Seller and Tyronne Clinton Nel, in terms of which the parties agree to unwind the Transaction through the disposal by the Seller of the YueDiligence Shares to YueDiligence and the disposal by YueDiligence of the SME Snapshot Equity to the Seller. As a result of the Disposal, YueDiligence will not be required to develop and roll out the product offerings of SME Snapshot. The Disposal will enable YueDiligence to focus solely on the roll out of its interactive web-based Gap Analysis Tool as a product offering to entrepreneurs, funders and consultants to assist them to identify growth gaps and help create sustainable entities that will attract funding for growth. Capital Raising A non-binding Letter of Intent has been signed with a party that is currently performing a due diligence to support either capital raising for Afdawn and/or secure funding for Elite or a combination of both. A cautionary statement in this regard was published on 25 June 2018. Material debtor Agreements incorporating the restructured arrangements have been concluded. The restructured arrangement significantly increases the likelihood of payment by the debtor in the next 12 months. Director's Loan The director has waived his right to claim, call up, or access his loan account, relating to contributions after year end, which shall only become due, owing and payable at such time when the restructured arrangement relating to the long outstanding debtor of R4.7million (refer Note 1.18) has been paid or discharged in full. It was also determined that if the board of directors of the company determine that the debt is no longer recoverable, then and in such event the director irrevocably waive his right, title and interest in and to the loan account. 40. Segment report The segment information has been prepared in accordance with IFRS 8 - Operating Segments which defines the requirements for the disclosure of financial information of an entity’s operating segments. IFRS 8 requires segmentation based on the Group’s internal organisation and reporting of revenue and operating income based upon internal accounting methods. The Group discloses its operating segments according to the components regularly reviewed by the chief operating decision-makers, being the executive directors. These amounts have been reconciled to the consolidated financial statements. The measures reported by the Group are in accordance with the accounting policies adopted for preparing and presenting the consolidated financial statements. Segment revenue excludes value added taxation and includes inter- segment revenue which is R0,192million (2017: 1,515). Net revenue represents segment revenue from which intersegment revenue has been eliminated. Sales between segments are made on a commercial basis. Segment operating profit before capital items represents segment revenue less segment expenses. Segment expenses consist of operating expenses. Depreciation, amortisation and impairments have been allocated to the segments to which they relate. The segment assets comprise all assets of the different segments that are employed by the segment and that are either directly attributable to the segment, or can be allocated to the segment on a reasonable basis.
AFRICAN DAWN 2018 Annual Report
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