South African Local Government Association
Schedule 3A public entity i. t. o. the Public Finance Management Act, 1999 and recognised i. t. o. the Organised Local Government Act, 1997
Annual Financial Statements for the year ended 31 March 2017
Notes to the Annual Financial Statements
Figures in Rand
2017 2016
8. Trade and other receivables from exchange transactions
Trade receivables |
51 380 006 |
57 735 935 |
Prepayments |
4 638 155 |
5 969 758 |
Sundry receivables |
10 955 992 |
3 876 936 |
Credit quality of trade and other receivables
66 974 153 67 582 629
The credit quality of trade and other receivables that are past due and not impaired can be assessed by reference to historical default rates. The credit qualities rating of each of these financial instruments are as follows:
Low credit grade( high risk)- The counter party has evidenced high occurrences of defaults and / or re-negotiations of contractual terms in prior periods. Furthermore an assessment of the financial position and liquidity position of the party has provided evidence of financial difficulties that may impede the recoverability of the outstanding amounts. As such the counter parties included in the low credit grade category pose a high credit risk to the entity.
Medium credit grade( medium risk)- The counter party has evidenced instances of defaults and / or re-negotiations of contractual terms in prior periods on the repayment of outstanding amounts. An assessment of the financial position and liquidity positions of the party has provided evidence of financial difficulties that may impede the recoverability of the outstanding amounts. The counter parties included in this credit grade category are active in an industry that is highly sensitive to market fluctuations and volatility in the international economies.
High credit grade( low risk)- The counter party has evidenced no instances of defaults and / or renegotiations of contractual terms in prior periods.
Trade receivables schedule Trade receivables schedule( gross carrying amount) |
104 118 769 |
114 267 643 |
Less: Allowance for impairment |
( 52 738 763) |
( 56 531 708) |
|
51 380 006 |
57 735 935 |
Trade and other receivables past due but not impaired( exchange transactions):
As of 31 March 2017, trade and other receivables from exchange transactions of R 51 380 006( 2016: R 57 735 935) were past due and not impaired:
The ageing of amounts past due but not impaired is as follows: Not more than 30 days |
- |
64 861 |
More than 30 days but not more than 60 days |
8 170 579 |
9 402 534 |
More than 60 days but not more than 90 days |
- |
5 812 643 |
More than 90 days but not more than 120 days |
- |
454 262 |
More than 120 days |
43 209 427 |
42 001 635 |
|
51 380 006 |
57 735 935 |
201 SALGA ANNUAL REPORT 2016 / 17