NVFH 2020 Integrated Annual Report

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NVest Financial Holdings Limited and its subsidiaries | (Registration number 2008/015990/06)Annual Financial Statements for the year ended 29 February 2020Notes to the Annual Financial Statements [continued]GroupCompanyFigures in Rand Notes 2020 2019 2020 201914. Trade and other receivables [continued]Split between non-current and current portionsCurrent assets 20,947,667 22,550,322 364,597 479,796Categorisation of trade and other receivablesTrade and other receivables are categorised as follows in accordance with IFRS 9: Financial Instruments:At amortised cost 15,172,074 20,885,588 14,017 11,333Non-financial instruments 5,775,593 1,664,735 350,580 479,79720,947,667 22,550,323 364,597 491,130Exposure to credit riskIn order to mitigate the risk of financial loss from defaults (defined as 90 days past due), the group only deals with reputablecustomers with consistent payment histories. Each customer is analysed individually for creditworthiness before terms andconditions are offered. The exposure to credit risk and the creditworthiness of customers, is continuously monitored.There have been no significant changes in the credit risk management policies and processes since the prior reporting period.A loss allowance is recognised for all trade receivables, in accordance with IFRS 9 Financial Instruments, and is monitoredat the end of each reporting period. In addition to the loss allowance, trade receivables are written off when there is noreasonable expectation of recovery, for example, when a debtor has been placed under liquidation. Trade receivableswhich have been written off are not subject to enforcement activities.The group measures the loss allowance for trade receivables by applying the simplified approach which is prescribed by IFRS9. In accordance with this approach, the loss allowance on trade receivables is determined as the lifetime expected creditlosses on trade receivables. These lifetime expected credit losses are estimated using a provision matrix, which is presentedbelow. The provision matrix has been developed by making use of past default experience of debtors but also incorporatesforward looking information on macroeconomic factors affecting the Group’s customers and general economic conditionsof the industry as at the reporting date. The Group has identified the gross domestic product (GDP), unemployment rate andinflation rate as the key macroeconomic factors.Trade receivables were previously impaired only when there was objective evidence that the asset was impaired. The impairmentwas calculated as the difference between the carrying amount and the present value of the expected future cash flows.The group has historically only experienced credit losses with regard to NVest Properties Limited and only had one defaultcustomer in the past 24 months. The group considers liquidity risk to be immaterial. The group applied the expected credit lossmodel when calculating impairment losses and have provided the loss allowance as listed below:Group 2020 2020 2019 2019Expected credit loss rate:Estimatedgross carryingamount atdefaultLoss allowance(Lifetimeexpectedcredit loss)Estimatedgross carryingamount atdefaultLoss allowance(Lifetimeexpectedcredit loss)Not past due: 0% 659,565 - 155,795 -Less than 30 days past due: 0% 423,078 - 130,480 -31 - 60 days past due: 25% 328,030 54,813 161,733 23,18761 - 90 days past due: 50% 265,263 82,947 67,013 28,91391 - 120 days past due: 75% 596,992 157,178 201,377 140,182Total 2,272,928 294,938 716,398 192,282106NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020
NVest Financial Holdings Limited and its subsidiaries | (Registration number 2008/015990/06)Annual Financial Statements for the year ended 29 February 2020Notes to the Annual Financial Statements [continued]GroupCompanyFigures in Rand Notes 2020 2019 2020 201914. Trade and other receivables [continued]Reconciliation of loss allowancesThe following table shows the movement in the loss allowance (lifetime expected credit losses) for trade and other receivables:Opening balance 192,282 - - -Provision raised on new trade receivables 102,656 192,282 - -Closing balance 294,938 192,282 - -15. Investments at fair valueInvestments held by the group which are measured at fair value, are as follows:Designated at fair value through profit or loss:Ci Holdings Proprietary LimitedThis financial instrument represents 16.67% ownership in thiscompany however this does not represent significant influence.The shares are held by NFB Asset Management Proprietary Limited.150,000 150,000 - -Mandatorily at fair value through profit or loss:Listed shares 4,751,669 3,462,174 - -Unit trusts 31,788,012 33,252,935 25,138,979 25,138,97936,689,681 36,865,109 25,138,979 25,138,979Fair value informationRefer to note 34 Fair value information for the fair value hierarchy of Investments at Fair Value.16. Cash and cash equivalentsCash and cash equivalents consist of:Cash on hand 12,318 12,475 - -Bank balances 123,402,532 135,011,614 36,995,170 61,050,035Short-term deposits 36,056,582 - - -159,471,432 135,024,089 36,995,170 61,050,035Credit quality of cash at bank and short term deposits, excluding cash on handAll cash at bank and short term deposits, excluding cash on hand, are held by major, reputable institutions:Credit ratingInvestec Bank PLC - BBB - 45,057,210 65,821,008 32,977,437 56,724,257Nedbank Limited - BBB - 109,802,130 63,552,057 4,017,733 4,325,778The Standard Bank of South Africa Limited - BBB - 4,599,774 5,638,549 - -159,459,114 135,011,614 36,995,170 61,050,035NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020 107
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GroupAwards2019 Morningstar Award-
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Contents06 Chairman’s Report08 Ch
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01ABOUTNVESTHOLDINGSNVest Financial
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As a consequence of all of these th
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those of the previous year and, sec
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SubsidiaryFeb 2020RevenueFeb 2019Re
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worldwide, resulting in an economic
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REVENUE - FEB 2020REVENUE (R)Invest
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ANTHONY DENIS GODWIN (60)CHIEF EXEC
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DR LANA JOY WELDON (46)INDEPENDENT
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Siviwe Relebohile Kwatsha (41)Group
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Name:Rob MastersLocation:NFB PWM EL
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Name:Melany AnnandaleLocation:NFB I
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02GROUPAFFAIRSNVest Financial Holdi
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199019941995Beyond our borders. NFB
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Our BusinessSummaryBrand Core Produ
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The evolutionof the NFB Brand1985NA
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NFB Private Wealth Management -the
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NFB Private Wealth Management- triu
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Loaves & Fishes NetworkDeep poverty
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NVest Financial Holdings Limited |
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Corporate Governance& Sustainabilit
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needs of the Board in considering s
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A detailed report of the Social and
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Legal Compliance: The inherentrisk
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PART 5.2: Strategy, performance and
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Principle 9Evaluations of the perfo
Page 59 and 60: • the Group’s risk management a
Page 61 and 62: (bb) the Organisation for Economic
Page 63 and 64: • internal audit policy including
Page 65 and 66: Remuneration andNominationsCommitte
Page 67 and 68: an incentive basis (mainly through
Page 69 and 70: Directors Responsibilitiesand Appro
Page 71 and 72: IndependentAuditor’s ReportIndepe
Page 73 and 74: Key audit matterGoodwill assessment
Page 75 and 76: material uncertainty exists, we are
Page 77 and 78: GeneralInformationNVest Financial H
Page 79 and 80: NVest Financial Holdings Limited an
Page 109: NVest Financial Holdings Limited an
Page 131 and 132: GeneralInformationCompany NameDate
Page 133 and 134: Notice of AnnualGeneral Meeting & P
Page 135 and 136: Explanatory note for ordinary resol
Page 137 and 138: person/s authorised by the board),
Page 139 and 140: In order for this resolution to be
Page 141 and 142: Special Resolution Number 1 -Genera
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NVFH 2020 Integrated Annual Report

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