Integrated Reports Senwes Financial Review 2018 - Page 35

FINANCIAL REVIEW 8. TRADE AND OTHER RECEIVABLES GROUP Notes Trade receivables Production accounts 8.1 Current accounts 8.2 Current portion of loans and other receivables 6.1 Grain debtors 8.3 Sundry receivables 8.4 Less: Provision for impairment 8.5 Balance at the end of the year 8.1 COMPANY 8.2 31 August 31 January Animal production credit due 31 August 2018 R’m 2017 R’m 2 310 2 128 2 257 2 085 The objective of the impairment requirements is to recognise expected credit losses in respect of financial assets for which there have been significant increases in credit risk since initial recognition — whether assessed on an individual or collective basis — considering all reasonable and supportive information, including that which is forward-looking. 1 988 1 861 1 861 322 267 1 988 269 224 Impairment = Total book x probability of default (PD) x loss given default (LGD). 303 274 303 274 87 Non-compliance with arrangements or agreements. 119 116 94 61 Insolvencies or near-insolvencies. 2 828 2 557 190 (94) 136 (97) 140 (93) 2 701 (96) 2 411 Current accounts consist of 30 day monthly accounts, silo cost accounts and other accounts for specific products. These accounts bear interest at the following rates: Monthly account: Silo cost account: Deferred payment arrangement: Interest-free for first 30 days after statement, thereafter classified as arrears. Interest-free period that varies from season to season (determined before every season), there­after classified as arrears. Interest-free period that varies according to various transactions and products, thereafter classified as arrears. Interest on arrear accounts is levied at guideline rates as determined by the National Credit Act. Grain debtors represent agricultural produce sold to third parties, storage and handling income. A provision for impairment of R2,9 million (2017: R1,7 million) is included in the group balances. No agency grain debtors were encumbered at year-end (2017: Rnil). The terms of these debtors are as follows: Mill-doors: Receivable within 7 days after delivery after which interest is charged at a prime-linked rate Ex silo financing: Interest at a prime-linked rate from date of invoice and receivable 30 days from date of statement Ex silo non-financing: &V6Vf&RvFCW'2FW&VgFW"FW&W7BB&RƖV@&FP&VBbf676WB2FWVFVBvWFW"FR7&VFB&6bFRf676WB07&V6VB6vf6Fǒ66RF&V6vFF6F'2b&VBbf676WB6VFS&VBf6&&V2""Wf6&F2ࠒFW"F6F'27V62G&VvB"r6FG&6W2v6vffV7B7W7FW"&ƗGF6WGFRWG7FFrFV'BखFfGV&VB76W76VCFRGv7B6vf6BF6F'2b&VBFVFfV@FR7W'&VBf6V"&R'&V'26Ɩ6RvFFV'F"FW&2B66ƖFF2GVPFFR6WfW&RG&VvB#bFRFW"f7F"2r6FG&6W2gFW"&fRfW&vP#b#rw&&GV7FV"7V6f6ǒ&VBVv6ƖVG2F2vG6ǒ&R66RvW&RFRFV'F"2&VGFVBfW"FFRVvFW'FVBf"&V6fW'FR&VB&W&W6VG2FR7GV&6tBf"76&R&BFV'BFWFW&֖VB'FRVvFW'FVBFrF66VB6V7W&FW2BFP6ƖVN( 2&6R6VWBFRf7F'2FBfVV6RvVVBw2W7FFW2BVFvVVB6VFPvWFW"7W7FW'2FVBfW"FFRVvFW'FVBf"6V7F&R7V6f6ǒ&fFVBf &6VBFRW7W&RBFRW7FFbFRVƗGBWV7FVB&VƗ6Fb6V7W&FW2V@f"FR7V6f27W7FW'2'FfƖ&VBVv6ƖVG2( 2w&W&VB76W76VCFV'F'2&R@FfGVǒ76W76VB'WBFV'F'2vF6֖"7&VFB&62B6&7FW&7F72&Rw&WVBFRVF&Pw&W2FV76W76VBf"&VBFRw&W&VBR267VFVB2fw3&V@B'&V'2FVfVBRG&VvBFVfVBRtBFRf7F'2FBfVV6RvVVBw2W7FЦFW2BVFvVVB6VFS7&W7FFW2BVG27V6f2FFR7W7FW'>( &Vv㰠FRV&W"bV7F&W2FVCFRWV7FVB&VƗ6F&6Rv62FR6fW&6RFW7FVB'w&FRFffW&V6W2BG&2Ч'BFffW&VF2Bv62FWFW&֖VB'7W7FW"&Vv㰠FRWB67G27V6f2FFR7W7FW'>( &VvBFRVƗGBWV7FVB&VƗ6Fb6V7W&FW2VBf"7W7FW'2vW&RFW&R27V6f2F6F"b&VBR'&V'2FRFV'F"v&R6FVv&6VB2'BЦfƖFV'F"FVv7V6f2F6F"b&VBW7G2FW&R&R7FvVW&f7F'2FBv7&V6RFR7&VFB&6RG&VvBFR7W'&VB6V6FR'FfƖ&VB2FW&Vf&R67V*ЧFVB2fw3&VBBG&VvBFVfVBRtBFRf7F'2FBfVV6RvVVBw0W7FFW2BVFvVVB&RFR6R2Ɨ7FVB&fRd4$UdUp0R#p.( ХFW6R66VG2667BbFRfvsvFW"&GV7F7&VFBGVR7VG'&V6Vf&W2667Bb66VG2f"6'&FRB7FGWF'6W'f6W22vV2FW6G2V@f"G&FrW'6W26fW#.( Х&GV7F66VG2ǒ6VFRFRWFV6b7&VFBF&GV6W'26V6&62f W'6W2b&7W&rWG2B"V66FW&66W2g&"f6VvW2FW6R66VG0&V"FW&W7BB&WB&VFVB&FW27VW"&GV7F7&VFBGVR@3