AFRICAN DAWN ANNUAL REPORT 2019 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2019 Group Company 2019 2018 2019 2018 R'000 R'000 R'000 R'000 14. Current tax (payable) Current tax payable - (5,705) - (3,312) - (5,705) - (3,312) 66 12. Restructure and disposal of associate Grindstone which was a 100% held subsidiary of Knife Capital at the beginning of the 2018 year was restructured on 31 August 2017 to be 50% held by Afdawn and 50% by Knife Capital. On 1 September 2017, 50% of the equity was sold as part of the sale of Knife and the remaining 50% was treated as an investment in associate until it was sold in January 2018. The movement is reconciled as below: Group Company 2019 2018 2019 2018 R'000 R'000 R'000 R'000 Net asset value of Grindstone at restructure - Transfer from subsidiary to associate at fair value 1 September 2017 - 1,893 Loss for the period September to January 2018 equity accounted - (156) Carrying value of associate/investment - 1,737 - 1,891 Sale price on sale of associate - 1,946 - 1,946 Profit on sale of associate - 209 - 55 Sale price on sale of associate ** - 1,946 - 1,946 Portion of sales price included in trade debtors (refer Note 9) - (946) - (946) Cash related to sale of equity instrument - 1,000 - 1,000 ** The Sale price of R1 946 000 consist of R 1750 000 selling price and the Grindstone loan of R 196 000. 13. Non-controlling interest The non-controlling interest recognized in 2018 arose from the acquisition of the subsidiary SME Snapshot by way of the issue of 15% of the equity in YueDiligence to the previous shareholder of SME Snapshot. The minority shares in YueDiligence were repurchased in exchange for the SME Snapshot shares, refer to Note 11. A settlement agreement was reached with SARS in December 2017 the terms of which are summarized below: * Various penalties and interest on Income Tax and Vat were reversed in Afdawn and certain subsidiaries with outstanding balances. Accruals raised for interest and penalties were reversed as follows: Group Income Tax of Rnil (2018: R7,757 million and VAT of R4,052 million). Company effect is: Income tax Rnil (2018: R4,319 million and VAT of R4,052 million.) * Afdawn and certain subsidiaries that were part of the settlement agreement with SARS, resulted in forfeiting assessed losses accumulated to 2017. * The full balance outstanding to SARS in terms of the settlement agreement has now been paid.
AFDAWN AR FINAL 2019
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