AFRICAN DAWN ANNUAL REPORT 2019 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2019 64 Exposure to credit risk Trade receivables inherently expose the group to credit risk, being the risk that the company will incur financial loss if customers fail to make payments as they fall due. There have been no significant changes in the credit risk management policies and processes since the prior reporting period. The impairment allowance provided on trade and other receivables was calculated on the general approach. Interest is charged on outstanding trade receivables. Details of credit risk are included in the financial instruments and risk management Note 33. Exposure to interest rate risk Refer to Note 33 financial risk management for details of interest rate risk management for amounts due from trade and other receivables. Fair value of trade and other receivables Trade and other receivables are carried at amortised cost, with their fair value being approximated by such value. 10. Subsidiary disposal Knife Capital Proprietary Limited disposal During August 2017 the board decided to restructure Knife Capital Proprietary Limited. On 1 Sep 2017 the Group disposed of 100% of the equity interest in Knife Capital and 50% of Grindstone for R3,625 million in cash. The terms were outlined in the SENS issued on 25 August 2017. Net cashflow effect of disposal of Knife Capital Group Group Company 2019 2018 2019 2018 R'000 R'000 R'000 R'000 Property, plant and equipment (refer to Note 3) - 44 - Intangible assets on contracts (refer to Note 5) - 2,006 - Goodwill (refer to Note 4) - 4,194 - Deferred tax asset (refer to Note 7) - 111 - Trade and other receivables - 588 - Group loans transferred to third parties - 329 - Cash and cash equivalents - 55 - Share of SME Snapshot transferred to holding company - (37) - Trade and other payables - (1,346) - Carrying value of assets and liabilities disposed - 5,944 - Total assets sold less subsidiary acquired/ investment at carry value Knife Capital - (5,944) - (4,043) 50% share of Grindstone equity transferred as part of sale - - (1,891) Fair Value of associate restructured from subsidiary - 1,893 - - Proceeds on sale of Knife Group - 3,625 - 3,625 Loss on sale and change in control - (426) - (2,309) Cash given up on sale - (55) - - Cash received on sale - 3,625 - 3,625 Cashflow movement on sale of Knife Capital - 3,570 - 3,625
AFDAWN AR FINAL 2019
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