LENMED AIR 2019.pdf

Group Figures in R’000 2019 Restated 2018 14. Inventory Medical supplies and consumables 63 749 62 398 During the year the Group acquired the inventory of one hospital pharmacy company from an independent pharmacist for R3.5 million. Allowance for obsolete stock Balance at beginning of year 1 362 1 073 Current year allowance (228) 289 BALANCE AT END OF YEAR 1 134 1 362 15. Trade and other receivables Trade receivables 660 858 522 913 Other receivables 48 370 58 336 Prepayments 25 017 6 890 Deposits 3 287 4 070 Value Added Tax 11 387 64 630 748 919 656 839 Allowance for impairment (82 400) (56 146) 666 519 600 693 Allowance for impairment: Balance at beginning of the year (56 146) (59 856) IFRS 9 transition adjustment through retained earnings (13 305) – Impairment charged to profit and loss (12 949) 3 710 (82 400) (56 146) Transition to IFRS 9: Opening balance - IAS 39 – (56 146) IFRS 9 transition adjustment through retained earnings – (13 305) Opening balance - IFRS 9 – (69 451) Allowance for impairment: Less than 30 days 6 416 6 660 30-59 days 2 775 1 682 60-89 days 1 479 1 424 90-119 days 1 515 1 037 120 days and over 70 215 58 648 82 400 69 451 Allowance for impairment rate: Less than 30 days 3 % 4 % 30-59 days 4 % 3 % 60-89 days 3 % 5 % 90-119 days 4 % 3 % 120 days and over 27 % 27 % During the year the Group wrote off bad debts amounting to R15.288 million in terms of the bad debt policy. The factors considered in determining the amount and the impairment of trade receivables were financial difficulties abscondences disputes and exposure to credit risk. The majority of gross trade receivables at the reporting date by type and customer were made up of Medical Aids. Other trade receivables include Workmens Compensation Private Government and Road Accident Fund. LENMED ANNUAL INTEGRATED REPORT 2019 109