MyTaxi Limited $($MyTaxi$$ or $$the company$)$ is an authorised financial services and credit provider listed on the JSE with a market capitalisation of R$360$ million as at its most recent financial year$-$end, $30$ June $2023.$ The company was founded by two brothers whose vision is to empower South Africans to become financially independent taxi operators. A recent study shows that $30\%$ of South African commuters prefer minibus taxis as a reliable and accessible mode of transport. MyTaxi provides its clients with a finance solution to help taxi operators $($taxipreneurs$)$ buy taxis and build sustainable businesses. Traditional South African banks are reluctant to provide funding to aspiring taxi operators as financial assistance to these taxipreneurs is considered high risk due to limited credit history. In order to mitigate its risks, MyTaxi uses the services of a third$-$party company to conduct the due diligence on all new loan applications. A prospective client must meet a set list of criteria to be approved. MyTaxi has just spent a substantial amount of money to procure a new system with machine learning capabilities where all this data is stored. The new system ensures a seamless application process which makes it easy for an individual to apply for taxi finance with MyTaxi. The client identifies the taxi they would want to buy at a dealership of their choice and then approaches MyTaxi for funding. The taxi is essentially purchased by MyTaxi on client$$s behalf and once it has been paid up over a specified period the ownership of the taxi passes to the client. The company charges its clients higher interest rates than other formal banking institutions. Throughout the duration of the finance period, the clients are responsible for fuel, insurance, repairs and maintenance of the taxis. At any stage during the agreement term, if the client cannot repay the interest plus capital portion as contractually agreed, steps are taken to recover amounts owed, or at worst, MyTaxi repossesses the taxi from the client. Only once the payment term is over and all payments are made, ownership of the taxi passes to the client and together with legal ownership. The responsibility for paying all other costs remains with the client. The $2023$ financial year was challenging for MyTaxi. Soaring interest rates and a declining economy in general put the company$$s liquidity under pressure. A larger than usual percentage of clients defaulted on their repayments, leading to impairments of loans increasing by $7\%$ year$-$on$-$year. A substantial amount of legal fees was paid to a law firm for legal advice as well as debt recovery. The finance team has provided the following information:An extract from the annual report of MyTaxi Limited at $30$ June $2023$ shows the following: Statement of comprehensive income for the year ended $30$ June $2023($extract$)$ Details of some items Note R$000$ Interest income from the financing provided to customers $134673$ Interest expense relating to the provision of financing to customers $2(9490)$ N Statement of Financial Position as at $30$ June $2023($extract$)$ Details Note R$000$ Liabilities consist of: Long$-$term borrowings $2130000$ Bank overdraft $515000$ Trade and other payables excluding bank overdraft $8905$ Equity consists of: Ordinary share capital at par value $680007,5\%$ Preference share capital at par value $780000$ Notes to the extracts from financial information provided: $1.$ Interest income from the provision of financing to customers is calculated using the effective interest rate method. $2.$ Interest expense relates to the following long$-$term interest$-$bearing borrowings: i$.$ A long$-$term loan of R$75$ million from SABA Bank was taken out on $1$ July $2020.$ It incurs an annual interest of prime less $150$ basis points and interest is paid annually in arrears. The full capital amount will be repaid on $30$ June $2030.$ Similar loans bear an annual interest at prime less $75$ basis points. ii$.$ Five million debentures were issued on $1$ July $2022$ at their nominal value $($or face value$)$ of R$10$ each and will be redeemed on $30$ June $2026$ at a premium of $6\%$ of the nominal amount. The nominal amount will be repaid on $30$ June $2026$ but the premium $12$ months later. Interest is paid annually in arrears and the nominal interest rate on the debentures is $9,5\%$ and the current market rate for similar debentures is $8\%.3.$ The impairments of loans relate to bad debt provision on loan amounts owed by customers. $4.$ Other income consists of insurance and commission income. $5.$ A bank overdraft at a rate of prime plus $4\%$ is in place to meet working capital requirements. MyTaxi experienced a significant delay in collecting payments from clients due to increased interest rates which affected clients$$ cash flow. $6.$ Tota These non$-$cumulative, non$-$redeemable preference shares pay out a dividend annually and the m