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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
167
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
2014
R’000
2013
R’000
9.
TRADE AND OTHER RECEIVABLES (continued)
Provision for impairment of receivables
Balance at the beginning of the year
7 639
12 025
Allowances made during the year
5 097
3 796
Acquisition/(disposal) of subsidiaries
6 462
(2 335)
Amounts utilised and reversal of unutilised amounts
(3 533)
(5 847)
At 31 May
15 665
7 639
Impairment of receivables is determined after assessing the nature of the customer, their geographic location
and specific circumstances.
The Group believes that the above provision for impairment of receivables sufficiently covers the risk of
default.
There is a cession of trade receivables of R2.011 billion (2013: R1.352 billion) in favour of Investec Bank
Limited as security for facilities referred to in note 3.