for the year ended 30 September

Notes to the annual financial statements

 
        Group   Company
    Notes     2011  
Rm  
  Restated  
2010  
Rm  
  2011  
Rm  
  2010  
Rm  
15.   Accounts receivable                    
  Non-current                    
  Rental accounts receivables1   15.1     887,7     821,7     –     –  
  Finance lease receivables2   15.2     75,4     24,3     –     –  
  Other       2,8     –     –     –  
        965,9     846,0     –     –  
  Current                    
  Rental accounts receivables1   15.1     474,4     646,3     –     –  
  Finance lease receivables2   15.2     113,8     62,0     –     –  
  Other accounts receivable   15.3     1 540,4     1 614,5     384,8     359,8  
        2 128,6     2 322,8     384,8     359,8  
15.1   Rental accounts receivables1                    
  Discounted deals:                    
  Collectable within one year       491,5     702,0     –     –  
  Provision for doubtful debts       (17,1)    (55,7)    –     –  
        474,4     646,3     –     –  
  Collectable after one year       887,7     821,7     –     –  
        1 362,1     1 468,0     –     –  
  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.                    
15.2   Finance lease receivables2                    
  Current finance lease receivables       113,8     62,0     –     –  
  Non-current finance lease receivables       75,4     24,3     –     –  
        189,2     86,3     –     –  
  The group enters into financing arrangements for various cellular and office equipment.                    
  All leases are denominated in rands. The average lease term is two years.                    
15.3   Other accounts receivable                    
  Trade receivables       1 388,7     1 384,7     335,4     353,2  
  Contract receivables       –     10,6     –     –  
  Retention receivables       0,4     2,1     –     –  
  Claims, prepayments and other receivables       241,0     304,3     65,4     27,0  
  Provision for doubtful debts       (89,7)    (87,2)    (16,0)    (20,4) 
        1 540,4     1 614,5     384,8     359,8  
  Trade receivables to the value of R201,2 million (2010: R267,8 million) have been ceded as security for certain trade payables.

 
1 The rental accounts receivables were disclosed as Quince accounts receivables in 2010.
2 The 2010 information has been restated to show the non-current portion of lease receivables as non-current assets and the current portion has been adjusted from R86,3 million to R62,0 million.  
15.4   Movement in the allowance for doubtful debts classified into major risk types  
       Group  
    Insured  
debtors  
Rm  
Individuals/  
contractors  
and small  
business  
Rm  
Mines/large  
business/  
government  
(national  
and regional) 
Rm  
Total  
Rm  
  2011          
  Balance at the beginning of the year   (6,3)  (97,5)  (39,1)  (142,9) 
  Decrease/(increase) in allowance   1,6   (87,9)  (3,9)  (90,2) 
  Amounts recovered during the year   0,3   0,5   2,7   3,5  
  Amounts written off during the year (against provision)  –   115,0   3,4   118,4  
  Other   1,1   (0,3)  3,6   4,4  
  Balance at end of year   (3,3)  (70,2)  (33,3)  (106,8) 
           
  2010          
  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) 
           
       Company  
  2011          
  Balance at the beginning of the year   –   (7,4)  (13,0)  (20,4) 
  (Increase)/decrease in allowance   –   (1,1)  2,2   1,1  
  Amounts recovered during the year   –   –   2,7   2,7  
  Amounts written off during the year (against provision)  –   0,5   0,1   0,6  
  Balance at end of year   –   (8,0)  (8,0)  (16,0) 
           
  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 written off during the year (against provision)  –   –   0,1   0,1  
  Other   –   0,4   6,6   7,0  
  Balance at end of year   –   (7,4)  (13,0)  (20,4) 
15.5   Ageing of past due but not impaired accounts receivable classified into major risk types          
       Group  
  2011          
  1 – 30 days   15,4   28,3   49,9   93,6  
  31 – 60 days   5,0   4,9   16,6   26,5  
  61 – 90 days   0,2   3,8   5,6   9,6  
  90+ days   1,3   23,9   73,3   98,5  
  Total   21,9   60,9   145,4   228,2  
           
  2010          
  1 – 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   43,5   94,4   244,3   382,2  
         
       Company  
  2011          
  1 – 30 days   6,2   0,1   12,8   19,1  
  31 – 60 days   0,8   –   15,4   16,2  
  61 – 90 days   0,1   –   0,3   0,4  
  90+ days   0,3   –   0,2   0,5  
  Total   7,4   0,1   28,7   36,2  
           
  2010          
  1 – 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  
15.6   Ageing of past due and impaired accounts receivable classified into major risk types          
       Group  
  2011          
  1 – 30 days   2,0   4,7   6,3   13,0  
  31 – 60 days   –   4,4   0,3   4,7  
  61 – 90 days   0,1   4,7   1,6   6,4  
  90+ days   1,6   47,5   33,6   82,7  
  Total   3,7   61,3   41,8   106,8  
           
  2010          
  1 – 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  
         
       Company  
  2011          
  1 – 30 days   –   –   –   –  
  31 – 60 days   –   0,3   0,3   0,6  
  61 – 90 days   –   0,3   0,8   1,1  
  90+ days   –   7,5   6,8   14,3  
  Total   –   8,1   7,9   16,0  
           
  2010          
  1 – 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  
           
    Insured  
debtors  
Rm  
Individuals/  
contractors  
and small  
business  
Rm  
Mines/large  
business/  
government  
(national  
and regional) 
Rm  
Total  
Rm  
15.7   Analysis of accounts receivable that are individually determined to be impaired classified into major risk types          
  Group 2011   2,9   7,4   22,3   32,6  
  Group 2010   0,4   1,9   4,1   6,4  
  Company 2011   –   –   –   –  
  Company 2010   –   0,6   –   0,6  
  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 9% and 11% 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.

As a result of the credit vetting process which takes place before a sale is made, we believe the credit quality of accounts receivable not past due nor impaired is good.

In the main, debtors in the group are not required to provide collateral.