NOTES TO THE ANNUAL FINANCIAL STATEMENTS – NOTE 9

    2015
R�000		       2014
R'000 		  
9.  TRADE AND OTHER RECEIVABLES                   
   Trade receivables  2 642 059           2 152 107    
   Less: Provision for impairment  (10 927)          (15 665)   
      2 631 132           2 136 442    
   Sundry debtors  34 265           22 456    
   Contingent consideration receivable*  17 757           �    
   Prepayments  68 958           12 544    
   VAT  15 960           55 255    
   Receivables from related parties (refer to note 29) 9 178           6 880    
      2 777 250           2 233 577    
   Less: Amounts included in current portion of trade and other receivables**  (2 712 165)          (2 181 973)   
      65 085           51 604    
  * This relates to the contingent consideration receivable for the disposal of Ukash. Refer to note 6 for further details.
  ** Included in the amount above are starter pack debtors that have a cycle period which may be in excess of 12 months.
  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 2015          
  Fully performing 2 515 633 — 2 515 633    
  Past due by one to 30 days 50 545 111 50 434    
  Past due by 31 to 60 days 28 742 98 28 644    
  Past due by 61 to 90 days 26 154 310 25 844    
  Past due by more than 90 days 38 390 9 408 28 982    
    2 659 464 9 927 2 649 537    
  Portfolio impairment   1 000 (1 000)    
    2 659 464 10 927 2 648 537    
  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    
 

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

Trade receivables are discounted at a discount rate of 9.25% per annum (2014: 9% per annum) based on average debtors’ days outstanding. The effect of discounting of the trade receivables balance which amounts to R8.227 million (2014: R7.465 million) is not taken into account in the above table.

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

Sundry debtors are considered to be fully performing.
    2015
R�000		       2014
R'000 		  
   Provision for impairment of receivables                   
   Balance at the beginning of the year  15 665           7 639    
   Allowances made during the year  6 994           5 097    
   Acquisition/(disposal) of subsidiaries  �           6 462    
   Amounts utilised and reversal of unutilised amounts  (11 732)          (3 533)   
   At 31 May  10 927           15 665    
  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 R2.485 billion (2014: R2.011 billion) in favour of Investec Bank Limited as security for facilities referred to in note 3.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS – NOTE 9