Trade receivables are amounts due from customers for merchandise sold or services rendered in the ordinary
course of business; and are accounted for as loans and receivables in accordance with the accounting policy
disclosed in note 7.1.
Prepayments and other receivables are stated at their nominal values.
As the functional currencies of MTN Sudan Company Limited and MTN Syria (JSC) are currencies of
hyperinflationary economies, prepayments relating to these subsidiaries are restated by applying the change
in the general price indices from the date of payment to the current reporting date. |
| |
2015
Rm |
|
2014
Rm |
|
| Trade receivables |
22 764 |
|
17 253 |
|
| Less: Allowance for impairment of trade receivables (note 7.1.4) |
(3 459) |
|
(2 514) |
|
| Net trade receivables |
19 305 |
|
14 739 |
|
| Loan to Irancell Telecommunication Company Services (PJSC)1 |
7 042 |
|
5 120 |
|
| Receivable from Irancell Telecommunication Company Services (PJSC)2 |
8 158 |
|
5 640 |
|
| Prepayments and other receivables3 |
4 484 |
|
2 961 |
|
| Sundry debtors and advances4 |
4 581 |
|
4 358 |
|
| |
43 570 |
|
32 818 |
|
| 1 |
The loan to Irancell Telecommunication Company Services (PJSC) attracts interest at LIBOR +4% per annum which is capitalised against
the loan. The loan and capitalised interest were payable in 2015. In January 2016 financial sanctions were lifted and payment is expected in the
foreseeable future. The recoverability of the loan was assessed at the reporting date and was found not to be impaired. |
| 2 |
With effect from 25 August 2015, MTN Mauritius and Irancell agreed for the unpaid dividends to bear interest at 8% per annum.
In addition and with effect from 1 October 2015, MTN Mauritius and Irancell converted R2 078 million of the unpaid dividend into a loan to
provide short-term funding to Irancell. This loan is repayable on 30 September 2017 and bears interest at 12% per annum. |
| 3 |
Prepayments and other receivables include prepayments for Base Transceiver Station (BTS) sites and other property leases. |
| 4 |
Sundry debtors and advances include advances to suppliers. |
An impairment loss of R1 151 million (2014: R286 million) was incurred in the current year. This amount is included
in other operating expenses in profit or loss (note 2.4).
Scancom Limited (MTN Ghana) has secured facilities through the pledge of its trade and other receivables
amounting to R1 672 million (2014: R1 427 million) (note 6.1).
The Group does not hold any collateral for trade and other receivables.
The Group’s exposure to credit and currency risk relating to trade and other receivables is disclosed in note 7.1.
|
