AFRICAN DAWN ANNUAL REPORT 2019 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2019 87 Analysis of financial assets Trade receivables are Grouped in terms of the accounting policy into: - Current receivables - includes debtors that are paying within their credit terms as well as those that are up to 75 days overdue where after they are transferred to the collections book. - Collection receivables - debtors remain in collections and will move through the ageing brackets with provisions recognised at varying percentages until they are 180 days overdue at which point they are fully written off unless: * The debtor was previously written off because it was sequestrated or deceased; or * The debtor was transferred to the legal book. - Legal receivables - includes debtors transferred from the collections book when the debtors have the following legal status: * A debt pack has been signed that would lead to an emolument attachment order; or * The debtor is placed under administration; or * The debtor is placed under debt review. Elite has specific percentages that are used to calculate the provision based on the ageing of the debtors. These are outlined below: Analysis of financial assets trade receivables: 2019 2018 % Loss Allowance Estimated gross carrying amount at default Loss Allowance % Loss Allowance Estimated gross carrying amount at default Loss Allowance Current receivables Current 2.3% 7,027 (165) 0.0% 10,027 - 30 days 10.8% 784 (85) 2.7% 470 (13) 60 days 52.6% 97 (51) 11.9% 320 (38) 90 days 69.4% 49 (34) 2.1% 436 (9) 120 days 84.6% 39 (33) 0.0% 116 - 120+ days 11.2% 4,379 (492) 5.4% 5,805 (314) Collections receivables Current 6.1% 820 (50) 20.0% 1,099 (220) 30 days 79.3% 82 (65) 45.0% 81 (36) 60 days 20.5% 180 (37) 45.0% 224 (101) 90 days 69.5% 187 (130) 45.0% 243 (110) 120 days 37.6% 157 (59) 50.0% 283 (141) 120+ days 92.9% 2,833 (2,630) 89.7% 908 (815) Legal receivables Current 77.3% 1,286 (994) 15.0% 1,779 (267) 30 days 77.3% 274 (212) 30.0% 342 (103) 60 days 77% 100 (77) 30.0% 353 (106) 90 days 76.4% 55 (42) 30.0% 67 (20) 120 days 77.2% 473 (365) 50.0% 932 (466) 120+ days 77.2% 7,957 (6,146) 78.5% 8,510 (6,681) 26,779 (11,667) 31,995 (9,440) The above loss allowance percentages were calculated based on the last two years credit history in the debtor’s book increased for forward looking information. This forward looking information adjustment is based on industry factors for similar short term finance arrangements.
AFDAWN AR FINAL 2019
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