COMPANY						GROUP
2022		2021			(R'million)	2022		2021
				20	Trade and other receivables
				20.1	Analysis of trade and other receivables
					Trade receivables	3 455,3		2 964,5
					VAT receivable	104,2		63,2
39,7		58,1			Sundry receivables	165,5		117,3
					Garnishee order#	87,7		–
0,1		–			Prepayments	208,2		183,8
					Pension fund contribution holiday (refer note 29)	38,9		39,9
0,4		1,0			Tax receivable	10,9		46,2
					Rebates receivable	12,4		4,4
40,2		59,1			Total gross receivables	4 083,1		3 419,3
(37,1)		(58,1)			Expected credit loss	(127,5)		(124,2)
3,1		1,0			Total net receivables	3 955,6		3 295,1
					# A garnishee order was served against the Chococam subsidiary resulting in several of Chococam’s bank accounts being blocked. The amounts seized were reclassified to other receivables and not disclosed as cash and cash equivalents on the basis that the cash is not readily available.
					Trade receivables, which generally have 30 to 60-day terms, are non-interest-bearing and are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. Included within sundry receivables is derivative assets of R16,5 million (2021: R3,2 million) which are carried at fair value, refer note 32.7 for further details.
				20.2	Expected credit loss*
(58,1)		(77,7)			Balance at the beginning of the year	(124,2)		(186,0)
–		–			Utilised during the year	2,7		5,6
21,0		19,6			Reversed during the year	0,7		58,2
–		–			Raised during the year	(6,7)		(2,0)
(37,1)		(58,1)			Balance at the end of the year*	(127,5)		(124,2)

*

The ECL results in the recognition of a loss allowance before the credit loss is incurred. Factors that are considered must account for current conditions along with reasonable and supportable forward-looking information that is not time consuming or costly to obtain. The company has adopted the “simplified approach” in determining the ECL.

Considering that IFRS 9 does not provide an explicit guide or any specific requirements we have opted to use a provision matrix approach to calculate the ECL. This involves allocating individual trade debtors into groups that share similar credit risk characteristics.

Customer’s risk rating was determined by applying the following criteria:

• Historical data spanning three years, which include payment history and behavioural trends
• Economic environment that has a significant impact to each customer
• Geographical location of the customer.

The percentage used to calculate the ECL for each risk segment was determined by:

• Past three years specific impairment provisions
• Past three years specific bad debts written off
• Past three years trade credit insurance claims ratios
• Management’s forward-looking analysis of the FMCG environment
• An unbiased approach that involves evaluating a range of possible outcomes based on current economic trends.

The company makes use of selective trade credit insurance. For those debtors that are not insured, the full carrying value of the outstanding debt was included in the calculation of the ECL. For those debtors that are insured, only the uninsured portion of the debt was included in the calculation of the ECL.

A process of identifying specific impairments is included in the total impairment provision. Management will raise a specific impairment provision when all internal and or pre-legal efforts to collect overdue debt has been exhausted.

	Performing receivables
(R’million)	Low risk	Medium risk Level 1	Medium risk Level 2	Medium risk Level 3	Defaulted receivables	Total
2022
As at 30 September 2022	2 153,9	326,7	533,8	421,0	19,9	3 455,3
Expected credit loss*	–	(13,4)	(10,7)	(83,5)	(19,9)	(127,5)
Net amount	2 153,9	313,3	523,1	337,5	–	3 327,8
Expected credit loss %	–	(4,1%)	(2,0%)	(19,8%)	(100,0%)	(3,7%)
2021
As at 30 September 2021	1 833,0	380,8	376,8	346,3	27,6	2 964,5
Expected credit loss*	–	(16,0)	(4,6)	(95,6)	(27,6)	(143,8)
Net amount	1 833,0	364,8	372,2	250,7	–	2 820,7
Expected credit loss %	–	(4,2%)	(1,2%)	(27,6%)	(100,0%)	(4,9%)

*	Excludes ECL reversal relating to sundry debtors of Rnil (2021: R19,6 million raised).

COMPANY						GROUP
2022		2021			(R'million)	2022		2021
				20.3	Past due analysis
					As at 30 September, the ageing of trade receivables was as follows:
					Not past due*	3 290,9		2 805,3
					Past due:
					Current to 60 days	81,9		86,1
					61 to 90 days	25,2		18,8
					91 to 180 days	26,3		40,2
					> 180 days	31,0		14,1
					Total	3 455,3		2 964,5
					As at 30 September, the ageing of all other receivables, excluding tax receivable and prepayments was as follows:
1,3		2,9			Not past due	217,4		69,6
					Past due:
1,4		–			Current to 60 days	137,4		72,5
–		–			61 to 90 days	6,8		0,4
–		7,2			91 to 180 days	3,7		7,1
37,0		48,0			> 180 days	43,4		75,2
39,7		58,1			Total	408,7		224,8
				20.4	Trade receivable analysis
					Industry spread of trade receivables:
					Retail	2 093,2		1 701,3
					Wholesale/Distributors	654,4		692,5
					Export	565,4		476,8
					Other	142,3		93,9
					Total	3 455,3		2 964,5
					Geographical spread of trade receivables:
					South Africa	2 863,4		2 448,3
					Rest of Africa	439,5		411,7
					Europe	46,1		36,8
					Rest of the world	106,3		67,7
					Total	3 455,3		2 964,5
				20.5	Collateral held
					Fair value of collateral held	23,8		52,6
					Collateral held represents hawker deposits which may be applied against accounts that are in default.

*	Debtors that are neither past due nor impaired are made up of customers with high credit ratings and with a sound payment history.