Notes to the annual financial statements

for the year ended 30 September

 
 
        Group     Company  
        2010  
Rm  
  2009  
Rm  
  2010  
Rm  
  2009  
Rm  
15.   QUINCE AND OTHER ACCOUNTS RECEIVABLE                
  15.1   Quince accounts receivable                  
    Discounted deals:                  
    Collectible within one year     702,0     771,3          
    Provision for doubtful debts     (55,7)    (61,6)         
        646,3     709,7          
    Collectible after one year     821,7     993,6          
        1 468,0     1 703,3          
    The discounted deals comprise the present value of discounted rental agreements, which are repayable over varying periods up to a maximum of five years from the balance sheet date.                  
    The Quince accounts receivable are ceded as security for the Quince long-term borrowings (refer to note 20).                  
  15.2   Other accounts receivable                  
    Trade receivables     1 384,7     1 321,8     353,2     280,3  
    Contract receivables     10,6     —     —     —  
    Retention receivables     2,1     4,6     —     —  
    Claims, prepayments and other receivables     390,6     363,6     27,0     49,9  
    Provision for doubtful debts     (87,2)    (65,4)    (20,4)    (28,1) 
        1 700,8     1 624,6     359,8     302,1  
    Trade receivables to the value of R267,8 million (2009: R239,5 million) have been ceded as security for certain trade payables.                  
    Finance lease receivables                  
    Current finance lease receivables     62,0     28,0     —     —  
    Non-current finance lease receivables     24,3     20,4     —     —  
        86,3     48,4     —     —  
    The group enters into financing arrangements for various cellular and office equipment. All leases are denominated in rand. The average lease term is two years.  
  15.3   Movement in the allowance for doubtful debts classified into major risk types (including Quince)                 
        Group  
    2010     Insured  
debtors  
Rm  
  Individuals/  
contractors  
and small  
business  
Rm  
  Mines/large  
business  
government  
– national  
and  
regional  
Rm  
  Total  
Rm  
    Balance at the beginning of the year     (2,0)    (99,6)    (25,4)    (127,0) 
    Acquisition of business     —     —     11,7     11,7  
    Increase in allowance     (5,7)    (101,0)    (1,5)    (108,2) 
    Amounts recovered during the year     —     —     (4,1)    (4,1) 
    Amounts written off during the year (against provision)    1,4     106,9     —     108,3  
    Other     —     (3,8)    (19,8)    (23,6) 
    Balance at end of year     (6,3)    (97,5)    (39,1)    (142,9) 
    2009                  
    Balance at the beginning of the year     (3,7)    (53,3)    (15,2)    (72,2) 
    Decrease/(increase) in allowance     0,1     (146,3)    (12,3)    (158,5) 
    Amounts recovered during the year     0,3     —     0,3     0,6  
    Amounts written off during the year (against provision)    1,3     109,3     1,8     112,4  
    Other     —     (9,3)    —     (9,3) 
    Balance at end of year     (2,0)    (99,6)    (25,4)    (127,0) 
                     
        Insured  
debtors  
Rm  
  Individuals/  
contractors  
and small  
business  
Rm  
  Mines/large  
business  
government  
– national  
and  
egional  
Rm  
  Total  
Rm  
    Company  
    2010                  
    Balance at the beginning of the year     (0,2)    (6,5)    (21,4)    (28,1) 
    Decrease/(increase) in allowance     0,2     (1,3)    1,7     0,6  
    Amounts recovered during the year     —     —     0,1     0,1  
    Amounts written off during the year (against provision)    —     0,4     6,6     7,0  
    Balance at end of year     —     (7,4)    (13,0)    (20,4) 
    2009                  
    Balance at the beginning of the year     —     (2,9)    (12,9)    (15,8) 
    Increase in allowance     (0,2)    (3,8)    (9,8)    (13,8) 
    Amounts written off during the year (against provision)    —     0,2     1,3     1,5  
    Balance at end of year     (0,2)    (6,5)    (21,4)    (28,1) 
  15.4   Ageing of past due but not impaired accounts receivable classified into major risk types (including Quince)                 
        Group  
    2010                  
    0 – 30 days     21,5     38,5     108,3     168,3  
    31 – 60 days     12,3     20,4     29,6     62,3  
    61 – 90 days     4,2     9,0     38,1     51,3  
    90+ days     5,5     26,5     68,3     100,3  
    Total     43,4     94,4     244,3     382,2  
    2009                  
    0 – 30 days     25,0     56,0     76,4     157,4  
    31 – 60 days     15,5     19,6     28,3     63,4  
    61 – 90 days     2,7     7,2     12,0     21,9  
    90+ days     9,8     20,4     20,0     50,2  
    Total     53,0     103,2     136,7     292,9  
        Company  
    2010                  
    0 – 30 days     5,0     12,8     12,5     30,3  
    31 – 60 days     5,8     9,8     16,7     32,3  
    61 – 90 days     3,1     1,6     13,9     18,6  
    90+ days     4,0     13,0     27,8     44,8  
    Total     17,9     37,2     70,9     126,0  
    2009                  
    0 – 30 days     13,1     16,9     5,4     35,4  
    31 – 60 days     6,5     5,2     1,6     13,3  
    61 – 90 days     1,2     0,9     —     2,1  
    90+ days     2,8     3,5     0,2     6,5  
    Total     23,6     26,5     7,2     57,3  
                     
                     
                     
        Insured  
debtors  
Rm  
  Individuals/  
contractors  
and small  
business  
Rm  
  Mines/large  
business  
government  
– national  
and  
regional  
Rm  
  Total  
Rm  
  15.5 Ageing of past due and impaired accounts receivable classified into major risk types (including Quince)    
        Group  
    2010                  
    0 – 30 days     —     3,5     —     3,5  
    31 – 60 days     —     0,9     —     0,9  
    61 – 90 days     0,8     1,5     1,0     3,3  
    90+ days     4,2     66,2     55,6     126,0  
    Total     5,0     72,1     56,6     133,7  
    2009                  
    0 – 30 days     2,3     —     —     2,3  
    31 – 60 days     23,8     20,5     —     44,3  
    61 – 90 days     1,8     —     —     1,8  
    90+ days     6,2     1,0     —     7,2  
    Total     34,1     21,5     —     55,6  
        Company  
    2010                  
    0 – 30 days     —     0,4     —     0,4  
    31 – 60 days     —     —     —     —  
    61 – 90 days     —     0,3     —     0,3  
    90+ days     —     9,6     2,7     12,3  
    Total     —     10,3     2,7     13,0  
    2009                  
    0 – 30 days     —     —     —     —  
    31 – 60 days     —     0,4     0,5     0,9  
    61 – 90 days     —     0,4     —     0,4  
    90+ days     —     1,0     —     1,0  
    Total     —     1,8     0,5     2,3  
  15.6 Analysis of accounts receivable that are individually determined to be impaired classified into major risk type (including Quince)                
    Group                 2010   0,4     1,9     4,1     6,4  
    Group                 2009   4,3     3,3     4,0     11,6  
    Company          2010   —     0,6     —     0,6  
    Company          2009   3,9     —     —     3,9  
    Trade and other receivables consist of a large number of customers spread across diverse industries. The group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics, excluding government departments which are considered a low credit risk.  
     
    Before accepting any new customers, the group assesses the potential customer's credit quality and defines a credit limit specific to that customer.  
     
    The average credit period on the sale of goods is 30 days. No interest is charged on the trade receivables for the first 60 days from the date of invoice. Thereafter, interest is charged at between 15% and 20% per annum, charged monthly on the outstanding balance.  
     
    In determining the recoverability of trade receivables, the group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being fairly large and unrelated.  
     
    Where the recoverability of accounts receivable is considered doubtful, provision is made so that the carrying values reflect the estimated recoverable amount.