CAV Annual Report 2021

CENTURION AEROSPACE VILLAGE NPC Registration Number: 2000/006996/08 ANNUAL FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

2021

2020

R

R

The long-term deposit was paid to the City of Tshwane for wayleave security deposit in line with the statutory requirements stipulated in Clause 9,2 of the Provincial Gazettee dated 19 February 2019. The provision of Wayleave refundable security deposit payments and submission of performance and maintenance guarantees to City of Tshwane were a mandatory requirement in obtaining a Section 101 certificate The issuing of the Section 101 certificate allows the developer to undertake site construction works, including Bulk Earthworks and Infrastructure (BEWI), utility services and specific facilities (such as tenant buildings). CAV has received the Section 101 certificate from the Municipality and are in the process of submitting the same to the Deeds Office. The submission of Section 101 certificate would pave the way for a Section 103 certificate for township proclamation being issued by the Deeds Office. Once the Section 103 certificate is issued, the guarantee and theWay leave deposit can be claimed within 12-months of retention period. A deposit was made to Aerosud Holdings Pty Ltd for the temporary utility services as the mentioned services are temporarily connected to Aerosud utility services. The amount would be claimed back once the Section 82 certificate, and occupation certificate for ATCC building are obtained from the City of Tshwane. 6. Trade and other Receivables Trade debtors 108 685 86 993 Provision for doubtful debts (76 310) (76 310) Sundry debtors - - Deposits - - Value added tax 616 604 206 929 648 979 217 612 Credit quality of trade and other receivables The maximum exposure to credit risk at the reporting date is the fair value of each class of debtors mentioned above. Exposure to credit risk Trade receivables inherently expose the company to credit risk, being the risk that the company will incur financial loss if customers fail to make payments as they fall due. There have been no significant changes in the credit risk management policies and processes since the prior reporting period. Trade receivables consist mainly of rental income from tenants. A loss allowance is recognised for trade receivables, in accordance with IFRS 9: Financial Instruments, and is monitored at the end of each reporting period. In addition to the loss allowance, trade receivables are written off when there is no reasonable expectation of recovery, for example, when a debtor has been placed under liquidation. Trade receivables which have been written off are not subject to enforcement activities. The company applies the simplified approach for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected credit loss provision for all trade receivables. The company’s historical credit loss experience does not show significantly different loss patterns for different customer segments. Trade and other receivables past due but no loss allowances recognised Trade and other receivables which are less than 3-months past due are considered for loss allowances or ECL’s. At 31 March 2021, R86,993 were past due and was impaired. However, it is anticipated that the amount is recoverable.

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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