Page 225 - Capricorn IAR 2020

2020 INTEGRATED ANNUAL REPORT
NOTES TO THE CONSOLIDATED AND SEPARATE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 30 June 2020
17. LOANS AND ADVANCES TO CUSTOMERS (continued)
The loans and advances to customers include instalment finance receivables which are analysed as follows:
Repayable within 1 year
Repayable after 1 year but within 5 years
Repayable after 5 years
Gross investment in instalment finances
Unearned future finance income on instalment finances
Net investment in instalment finances
Group
2020 N$’000
164,945
3,470,533
113,672
3,749,150
(429,639)
3,319,511
2019 N$’000
157,581 3,551,382 20,517
3,729,480 (520,205)
3,209,275
Under the terms of lease agreements, no contingent rentals are payable. These agreements relate to motor vehicles and equipment.
The Group has a share purchase scheme in which it has a mechanism to allow employees to purchase shares in Capricorn Group
at a value that approximates fair value at the date of sale of shares. The shares are sold via an interest free loan provided by Bank Windhoek Ltd. Such loans are full recourse loans and if not repaid, Bank Windhoek Ltd may legally take possession of the employee’s personal assets. Thus the share purchase scheme does not fall within the scope of IFRS 2 – ‘Share-based payment’. The benefit employees receive relating to the interest free element of the loan is taken directly to the employee loan accounts.
Included in term loans is an amount of N$49.8 million (2019: N$46.6 million) relating to the above-mentioned scheme. The movements on these staff loans were as follows:
Group
2020 N$’000
46,625
6,584
(30,209)
8,755
2,853
34,608
Opening balance
New loans advanced during the year Loans redeemed during the year Staff costs (adjustment to fair value) Effective interest charged
Closing balance
2019 N$’000
43,496
20,832 (16,076) (6,657)
5,030 46,625
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