NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 18

18. PROVISIONS

  Audit 
Fees 
R'000 
Contingent
litigation
liability
R'000
Loss on
guarantees
R'000
Total  
R'000 
 
Group          
Balance as at 30 June 2014 4 105  8 350 5 000 17 455    
Charged/(credited) to the statement of comprehensive income:                
– additional provisions  5 983  5 983    
– prior period under provision  (703) (703)   
Utilised during the year  (5 174) (5 174)   
Balance as at 30 June 2015  4 211  8 350 5 000 17 561    
Charged/(credited) to the statement of comprehensive income:                
– additional provisions  9 659  9 659    
– prior period under provision  (34) (34)   
Utilised during the year  (9 081) (9 081)   
Balance as at 30 June 2016  4 755  8 350 5 000 18 105   

  Audit 
Fees 
R'000 
Loss on
guarantees
R'000
Total 
R'000 
 
Company        
Balance as at 30 June 2014 740  5 000 5 740    
Charged/(credited) to the statement of comprehensive income:             
– additional provisions  1 063  1 063    
– prior period under provision  (35) (35)   
Utilised during the year  (705) (705)   
Balance as at 30 June 2015  1 063  5 000 6 063    
Charged/(credited) to the statement of comprehensive income:             
– additional provisions  1 060  1 060    
– prior period under provision  (34) (34)   
Utilised during the year  (1 241) (1 241)   
Balance as at 30 June 2016  848  5 000 5 848   

ANALYSIS OF PROVISIONS:

  Group   Company  
  June
2016
R'000
  June
2015
R'000
  June
2016
R'000
  June
2015
R'000
 
Non-current portion 8 350   8 350      
Current portion 9 755   9 211   5 848   6 063  
  18 105   17 561   5 848   6 063  

AUDIT FEES

The provision for audit fees relates services provided by the external auditors for the 2016 financial year. The fees will be settled within the 2016 financial year.

CONTINGENT LITIGATION LIABILITY

A claim was instituted against Medscheme Holdings (Pty) Ltd and three of its employees in 2008 for allegations concerning copyright infringements and the breach of the Medware license agreement. The amount that was raised as a provision was determined by the directors using the maximum loss and probability theory. The parties are currently engaged in arbitration.

LOSS ON GUARANTEES

The provision for loss on guarantees relates to a deposit put in place by the Company to serve as a good-faith deposit for an overdraft facility extended to a strategic target. The strategic target was placed in provisional liquidation during the 2012 year and as such, the Company has agreed that the R10 million deposit will, under certain conditions, be applied to reduce the overdraft indebtness to Nedbank. Given the notarial bond held by the Company, 50% of the exposure is expected to be recovered in the near future.


NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 18