Page 58 - annualreport2020

AFRICAN DAWN ANNUAL REPORT 2020

Notes to the Financial Statements continued
Annual Financial Statements For the year ended 29 February 2020

5. Investments in subsidiaries
The following table lists the entities which are controlled by the Group, either directly or indirectly through subsidiaries. The principal place of
business and incorporation for all subsidiaries is South Africa.

The carrying amounts of the subsidiaries are shown net of impairment losses.
The carrying amounts of investments in subsidiaries were reassessed for impairment at year end and impaired as indicated.

Company

Name of company % voting % voting Carrying Carrying
power power value 2020 value 2019
2020 2019 Nature R’000 R’000
ABC Cashplus (Randburg) Proprietary Limited* 0 % 100 % Dormant - -
African Dawn Debt Management Proprietary Limited 100 % 100 % Dormant - -
African Dawn Kwazulu Natal Proprietary Limited* 0 % 100 % Dormant - -
African Dawn Property Transfer Finance 1 Proprietary Limited 100 % 100 % Bridging Finance - -
African Dawn Property Transfer Finance 2 Proprietary Limited 100 % 100 % Bridging Finance - -
African Dawn Social Education Proprietary Limited* 0 % 100 % Dormant - -
African Dawn Wheels Operations Proprietary Limited* 0 % 100 % Dormant - -
African Dawn Wheels Proprietary Limited 100 % 100 % Vehicle finance - -
Albistar Investments Proprietary Limited* 0 % 100 % Dormant - -
Almika Properties 81 Proprietary Limited 100 % 100 % Dormant - -
Amalgum Investments 138 Proprietary Limited* 0 % 100 % Dormant - -
Bhenka Financial Services Proprietary Limited* 0 % 100 % Dormant - -
Candlestick Park Investments Proprietary Limited 100 % 100 % Dormant - -
Elatiflash Proprietary Limited* 0 % 100 % Dormant - -
Elite Group Two Proprietary Limited 100 % 100 % Unsecured lending - -
Elite Group Proprietary Limited 100 % 100 % Unsecured lending 8,322 8,322
YueDiligence Proprietary Limited 100 % 100 % Consulting 1,500 3,055
9,822 11,377

The year end of all subsidiaries are the same as the group year end.
* These companies were de-registered during the year and no longer form part of the group.

Testing for impairment

The investments in subsidiaries are tested for impairment by analysing each investment's recoverable amount when there is an indication of
impairment. The measurement is a Level 3 fair value measurement.

The recoverable amount of the investments has been determined based on value-in-use calculations. These calculations use pre- tax cash
flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are
extrapolated using the estimated growth rates stated below. This growth rate does not exceed the long-term average growth rate in which the
businesses operate in.

During the current year YueDiligence was tested for impairment and was impaired by R1,555 million bringing the net asset value to R1,500 million.
The group obtained additional funding which was used to increase the capacity of the Elite lending book. This will result in a greater ability to
generate income associated with new loans granted.
The key assumptions, long term growth rates and discount rates used in the value-in-use calculations are as follows:

56