NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 12

        2013
R’000		   2012
R’000		  
12. Trade and other receivables            
  Trade receivables     1 427 759   1 367 827  
  Less: Provision for impairment     (7 639)   (12 025)  
        1 420 120   1 355 802  
  Sundry debtors and prepayments     23 806   20 970  
  VAT     81 003   3 332  
  Receivables from related parties (refer to note 30)     14 436   7 546  
        1 539 365   1 387 650  
  The carrying value of trade and other receivables approximates their fair value.

The Group’s exposure to credit and currency risk relating to trade and other receivables is disclosed in note 3.

The ageing of trade receivables at the reporting date is as follows:
        Gross
R’000		   Impairment
R’000		   Net
R’000		  
  31 May 2013                
  Fully performing     1 381 922   —   1 381 922  
  Past due by one to 30 days     27 992   543   27 449  
  Past due by 31 to 60 days     7 969   281   7 688  
  Past due by 61 to 90 days     5 551   749   4 802  
  Past due by more than 90 days     22 463   6 066   16  
        1 445 897   7 639   1 438 258  
  31 May 2012                
  Fully performing     1 306 219   585   1 305 634  
  Past due by one to 30 days     35 128   579   34 549  
  Past due by 31 to 60 days     3 782   395   3 387  
  Past due by 61 to 90 days     2 213   429   1 784  
  Past due by more than 90 days     32 193   10 037   22 156  
        1 379 535   12 025   1 367 510  
  Receivables in respect of starter packs are included in fully performing debtors above.

Trade debtors are fair valued at a discount rate of 8% per annum (2012: 8% per annum) based on average debtors’ days outstanding. The effect of discounting of the trade receivables balance of R3.702 million (2012: R4.162 million) is not taken into account in the above table.

The trade receivables that are neither past due nor impaired relate to a number of independent customers for whom there is no recent history of default.

        2013
R’000		   2012
R’000		  
  Provision for impairment of receivables            
  Balance at the beginning of the year     12 025   14 064  
  Allowances made during the year     3 796   3 318  
  Disposal of subsidiaries     (2 335)   —  
  Amounts utilised and reversal of unutilised amounts     (5 847)   (5 357)  
  At 31 May     7 639   12 025  
  Impairment of receivables is determined after assessing the nature of the customer, their geographic location and specific circumstances.            
  The Group believes that the above provision for impairment of receivables sufficiently covers the risk of default:            
  There is a cession of trade receivables of R1.352 billion (2012: R1.317 billion) in favour of Investec Bank Limited as security for facilities referred to in note 3.            

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 12