Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 33

6. LOANS AND OTHER RECEIVABLES Represent debtors for financing of mortgage loans (note 6.1) granted over varying terms of up to 120 months. The underlying asset serves as security for the loans/agreements. Interest rates are market-related and can be variable or fixed, depending on the specific agreement. GROUP NOTES Gross investment in mortgage loans 2018 R’m 2017 R’m 2 023 1 930 Less: Unearned financing income (641) (625) Carrying amount 1 382 1 305 Less: Current portion Total loans and other receivables 8 (303) (274) 6.1 1 079 1 031 6.1 MORTGAGE LOANS GROUP 2018 R’m 2017 R’m Within one year 303 274 After one year but not more than five years 631 608 More than five years 448 423 Carrying amount 1 382 1 305 Less: Current portion (303) (274) Total 1 079 1 031 6.1.1 Terms and conditions Mortgage loans are repayable over 2 to 10 years, secured mainly by first bonds over property. The interest rates are market-related, depending on the specific agreement. 6.1.2 Provision for impairment The provisions for impairment of the loans receivable forms part of the short-term trade and other receivables under note 8. Please refer to note 8.5 since the provision for impairments forms part of the portfolio impairment provision. 6.1.3 Fair value As indicated in note 6.1.2 the impairment provisions forms part of trade and other receivables as disclosed in note 8 and the long-term loans receivable needs to be read in conjuction with note 8 to get to the fair value as the carrying value as reflected in this note is not the fair value. Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 32