omnia holdings annual report 2010 omnia holdings annu

106 OMNIA ANNUAL REPORT 2010 FINANCIAL STATEMENTS continued
NOTES TO THE GROUP FINANCIAL STATEMENTS continued
for the year ended 31 March 2010
29 FINANCIAL RISK MANAGEMENT
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure.
Trade receivables that are less than one month past due are not considered impaired. As of 31 March 2010, trade receivables of
R315 million (2009: R522 million) were past due but not impaired. These relate to a number of independent customers from whom
there is no recent history of default, or for whom credit insurance is in place.
Gross
Rm
2010 2009
Impairment
Rm
Gross
Rm
Impairment
Rm
The ageing of trade receivables at the reporting date was:
Fully performing 843 – 697 –
Past due 31 – 60 days 191 (8) 219 (1)
Past due 61 – 90 days 64 (4) 79 (6)
Past due 91 – 120 days 29 (6) 73 (9)
More than 120 days 110 (61) 292 (125)
1 237 (79) 1 360 (141)
The carrying amount of trade receivables are denominated in the following currencies:
2010
2009
Rm
Rm
Rand 749 591
US dollar 322 514
Euro 9 8
Other currencies 78 106
1 158 1 219
The movement in the provision for impairment in respect of trade receivables during the year was as follows:
2010
2009
Rm
Rm
At 1 April (141) (62)
Allowance for receivable impairment (4) (80)
Receivables written off during the year as uncollectible 60 9
Unused amounts reversed 4 1
Foreign currency movement 2 (9)
At 31 March (79) (141)
As of 31 March 2010, trade receivables of R79 million (2009: R141 million) were impaired and provided for.
The creation and release of provisions for impaired receivables have been included in distribution expenses in the income
statement. Amounts charged to the provision accounts are generally written off, when there is no expectation of recovering
additional cash. Unwinding of discount is included in finance costs in the income statement.
The other classes within trade and other receivables do not contain impaired assets.
The Group has no significant concentration of credit risk. The Group has policies in place to ensure that sales of products and
services are made to customers with appropriate credit history. The Group limits the amount of credit exposure to any one
financial institution. In addition, the Group has insurance cover over certain of its receivables.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above.
The Group does not hold any collateral as security.