Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 36

Portfolio impairment (non-legal clients): A group impairment assessment - debtors are not individually assessed but debtors with similar credit risks and characteristics are grouped. The entire group is then assessed for impairment. The group impairment percentage is calcu- lated as follows: Impairment = PD (arrears default % + drought default %) x LGD. The factors that influence management’s estimates and judgement include: • Crop estimates and yields specific to the client’s region; • The number of hectares planted; • The expected realisation price, which is the Safex price adjusted by grade differences and transport differentials and which is determined by the client’s region; • The input costs specific to the clients’ region; and, • The quality and expected realisation of securities held for clients. Where there is no specific indicator of impairment, i.e. arrears, the debtor will be categorised as a portfolio debtor. Although no specific indicator of impairment exists, there are still general factors that will increase the credit risk, i.e. drought in the current season. The portfolio impairment is therefore calculated as fo %ɵЀAɽ՝ЁձЀ1Qѽ́ѡЁՕӊéѥѕ)ՑЁɔѡ́ͅѕٔ($)́Ё啅ȵɽ٥ͥHЁH܁݅́ȁѡɵЁɅѡȁɕم̰ѡхݡ)́́$$$$$$)I=U@()Ke)Ke)MɵЀ) Ёѡѡ啅ȀऀĤ)%ɕ͔ɽ٥ͥɥѡ啅ȀȤ)QɅ͙ȁݕљɵЀ)Uѥ͕ɥѡ啅Ȁ)AљɵЀФ) Ёѡѡ啅Ȁ䤀)ɕ͔ɽ٥ͥɥѡ啅ȀԀ(Фܤ)Qхɽ٥ͥȁɵ(؁QɅѡȁɕم́յɥ͕́)I=U@(() UII9P)Ke P%8)IIIL)KeQ=Q0)Ke UII9P)Ke P%8)IIIL)KeQ=Q0)Ke(ȀԀԀȀȀĀ܀Ȁ(ĀĀĀ̀Ā(܀ԀȀ̀Ѐ) ɕЁѥ́ѡȁɕم̀܀؀̀Ԁ)Ʌѽ̀؀)Mչɕم̀؀̀(Ĥ̤ФĤؤܤ(Ȁ܀ĀȀȀ̀ЀȀ)QɅɕم)AɽՍѥչ) ɕЁչ)1Aɽ٥ͥȁɵ)QхɅѡȁɕم(ظā ɕЁɕم́ɔչ́ݥѡɕЁɕЁѕɵ̸$$(ظȁЁɕ́ɔչ́ͥɕЁɕЁѕɵ̸$$(ظ́Qɽ٥ͥɕѥѼЁɕ́́ɽ٥͕ͥѽٕ́ȁѼѡѵи$$($$($͕́ɥ䁙ȁMݕϊd͡еѕɴѥ́ݥѠ̈́ Ցѡѽ݅ɑ́QɅمхɥ́ѕɕ́ɽՍ)ѽ́ѡȁչɱ她͕ɥѥ́ٔѼ̈́ QمՔ͕ɥ䁍չ́ѼHȰā(HȰ́Ё啅ȵ($$$$$$$($Q她مՔɽ᥵ѕ́ѡȁمՔɅѡȁɕم̸()M9]M 099U0%99 %0MQQ59QL$$)Mݕ͉1ѕIؼ