NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 9

      2014
R’000
    2013
R’000
 
9. TRADE AND OTHER RECEIVABLES      
  Trade receivables   2 152 107     1 427 759  
  Less: Provision for impairment   (15 665)     (7 639)  
      2 136 442     1 420 120  
  Sundry debtors   22 456     14 609  
  Prepayments   12 544     9 197  
  VAT   55 255     81 003  
  Receivables from related parties (refer to note 28)   6 880     14 436  
      2 233 577     1 539 365  
  Less: Amounts included in current portion of trade and other receivables   (2 181 973)     (1 539 365)  
      51 604      
 

The Group’s exposure to credit and currency risk relating to trade and other receivables is disclosed in note 3.

    Gross
R’000
Impairment
R’000
Net
R’000
 
31 May 2014          
Fully performing   2 127 087 2 127 087  
Past due by one to 30 days   18 045 166 17 879  
Past due by 31 to 60 days   4 349 601 3 748  
Past due by 61 to 90 days   3 010 406 2 604  
Past due by more than 90 days   13 961 8 030 5 931  
    2 166 452 9 203 2 157 249  
Portfolio impairment     6 462 (6 462)  
    2 166 452 15 665 2 150 787  
31 May 2013          
Fully performing   1 381 922 1 381 922  
Past due by one to 30 days   27 992 543 27 449  
Past due by 31 to 60 days   7 969 281 7 688  
Past due by 61 to 90 days   5 551 749 4 802  
Past due by more than 90 days   22 463 6 066 16 397  
    1 445 897 7 639 1 438 258  

Receivables in respect of starter packs are included in fully performing debtors above.

Trade receivables are discounted at a discount rate of 9% per annum (2013: 8% per annum) based on average debtors’ days outstanding. The effect of discounting of the trade receivables balance which amounts to R7.465 million (2013: R3.702 million) is not taken into account in the above table.

The trade receivables that are neither past due nor impaired relate to a number of independent customers for whom there is no recent history of default.

Sundry debtors are considered to be fully performing.

    2014
R’000
    2013
R’000
 
Provision for impairment of receivables            
Balance at the beginning of the year   7 639     12 025  
Allowances made during the year   5 097     3 796  
Acquisition/(disposal) of subsidiaries   6 462     (2 335)  
Amounts utilised and reversal of unutilised amounts   (3 533)     (5 847)  
At 31 May   15 665     7 639  

Impairment of receivables is determined after assessing the nature of the customer, their geographic location and specific circumstances.

The Group believes that the above provision for impairment of receivables sufficiently covers the risk of default.

There is a cession of trade receivables of R2.011 billion (2013: R1.352 billion) in favour of Investec Bank Limited as security for facilities referred to in note 3.


NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 9