Notes to the Group annual financial statements l Note 3.1.1

3.1.1 Loans receivable
 
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These assets are included in current assets, except for maturities greater than 12 months after the statement of financial position date, which are classified as non-current assets.

           
    2017 
 R’000 
        2016 
 R’000 
   
Interest-free loans  121 609        53 189    
Interest-bearing loans receivable  103 471        50 938     
  225 080        104 127     
Less: Amounts included in current portion of loans receivable  (188 229)       (98 217)    
   36 851        5 910     

All loans receivable are unsecured and repayable within five years. Interest-bearing loans bear interest at a range of between 7.5% and prime plus 2%.

The loans receivable are neither past due nor impaired with a low risk of default. Of this amount, R26 million (2016: R47 million) relates to loans receivable from related parties, of which R26 million (2016: R21 million) is interest free (refer to note 8).

The Group considers its maximum exposure in respect of loans receivable, without taking into account any collateral and financial guarantees, to be as follows:

   2017 
 R’000 
      2016 
 R’000 
  
Group 1     5 427  
Group 2 224 861     98 340  
Group 3 219     360   
  225 080     104 127   

The rating groups for counterparties are categorised as follows:
Group 1 – New customers/related parties (less than six months).
Group 2 – Existing customers/related parties (more than six months) with no defaults in the past.
Group 3 – Existing customers/related parties (more than six months) with some defaults in the past.

All defaults were fully recovered or are in the process of being recovered.


Notes to the Group annual financial statements l Note 3.1.1