CITRUS ACADEMY (Company Incorporated under Section 21) Registration No. 2007/ Annual Financial Statements for the year ended 31 March 2011

Transcription

1 Registration No. 2007/ Annual Financial Statements for the year ended 31 March 2011

2 COMPANY INFORMATION Registration number: 2007/ Registered address: Block C 21 Cascades Crescent Pietermaritzburg 3201 Business address: Florida Mansions, Suite Florida Road Morningside Durban 4001 Postal Address: P.O. Box 461 Hillcrest 3650 Auditors: Bankers: PriceWaterhouseCoopers Inc. Pietermaritzburg Standard Bank Limited CONTENTS Page Statement of Directors Responsibility 3 Report of the Independent Auditors 4 Report of the Directors 5 Statement of Financial Position 6 Statement of Comprehensive Income 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Notes to the Financial Statements Detailed Statement of Comprehensive Income

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6 Report of the Directors The directors present their annual report, which forms part of the audited financial statements of the company for the year ended 31 March General review The company provided services to the citrus industry in skills development and capacity building. 2. Financial results The financial results of the company are set out in the attached financial statements. 3. Members of the board The following acted as board members during the year: Chairman S. Dellis Vice-Chairman M. Woodburn Board members I. Nemaorani M. Fry J.S. de Jager J. van Biljon G. Piner 4. Material events after year end No matter which is material to the financial affairs of the company has occurred between 31 March 2011 and the date of approval of the financial statements. 5. Auditors PricewaterhouseCoopers Inc. will continue in office in accordance with Section 270(2) of the Companies Act. 5

7 Statement of Financial Position Note R R ASSETS Non-current assets Computer equipment Current assets Receivables and prepayments Cash and cash equivalents Amount due from Learning Material Development Fund Total assets EQUITY AND LIABILITIES Capital and reserves Accumulated loss ( ) ( ) Learning Material Development Fund Total equity ( ) ( ) Non-current liabilities Loan account Citrus Growers Association Current liabilities Bank overdraft Trade and other payables Amount due to Learning Material Development Fund Total liabilities Total equity and liabilities

8 Statement of Comprehensive Income Note R R Revenue Other income Administration expenses ( ) ( ) Other expenses ( ) ( ) Net surplus/(deficit) for the year ( ) Other comprehensive income - - Total comprehensive income/(loss) for the year ( ) 7

9 Statement of Changes in Equity R R Accumulated loss Balance at beginning of year ( ) Surplus (deficit) for the year ( ) Balance at end of year ( ) ( ) Learning Material Development Fund Balance at beginning of year Expended on learning material development (30 700) ( ) Balance at end of year

10 Statement of Cash Flows Note R R Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees ( ) ( ) Net cash utilised in operating activities 8 ( ) ( ) Cash flows from investing activities Acquisition of fixed assets (11 890) (11 028) Net cash utilised in investing activities (11 890) (11 028) Cash flows from financing activities Decrease in Learning Material Development Fund (30 700) ( ) Increase in loan account Net cash (utilised in) generated by financing activities (30 700) Net (decrease)/increase in cash and cash equivalents ( ) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

11 Notes to the Financial Statements 1. Summary of significant accounting policies The principle accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated Basis of preparation The financial statements have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs). The financial statements have been prepared under the historical cost convention, as modified by the revaluation of land and buildings, available-for-sale financial assets, and the fair value of financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss. The preparation of the financial statements in conformity with IFRS for SMEs requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period based on management s best knowledge of current events and actions. Actual results may ultimately differ from these estimates. During the current year, there are no areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements Computer equipment All computer equipment is stated at historical cost less accumulated depreciation and impairment losses. Historical costs include expenditure that is directly attributable to the acquisition of the items. Subsequent cost are included in the asset s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Depreciation on assets is calculated using the straight-line method to allocate their cost to their residual values over their estimates lives as follows: Computers 3 years The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date. An asset s carrying amount is written down immediately to its receivable amount if the asset s carrying amount is greater than its estimated recoverable amount (refer note 1.3). Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the statement of comprehensive income. When revalued assets are sold, the amounts included in other reserves are transferred to retained earnings. 10

12 Notes to the Financial Statements 1.3 Impairment of non-financial assets Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset s carrying amount exceeds it recoverable amount. The recoverable amount is the higher of an asset s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Nonfinancial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date. 1.4 Trade receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtors, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The amount of the provision is the difference between the asset s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. 1.5 Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost. Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position. 1.6 Borrowings Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of comprehensive income over the period of the borrowing using the effective interest method. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date. 1.7 Trade payables Trade payables are carried at the fair value of the consideration to be paid in future for goods or services that have been received or supplied and invoiced or formally agreed with the supplier. 11

13 Notes to the Financial Statements 1.8 Provisions Provisions are recognised when: the company has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate reflects current market assessments of the time value of money and the risk specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. 1.9 Financial risk management Financial risk factors: Foreign exchange risk The company is not exposed to foreign exchange risk as no foreign currency transactions are entered into. Interest rate risk As the company has no significant interest-bearing assets, except for cash and cash equivalents, the company s income and operating cash flows are substantially independent of changes in market interest rates. Credit risk At year-end the company did not consider there to be any significant concentration of credit risk which had not been adequately provided for. Cash transactions are limited to high credit quality financial institutions. Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash, marketable securities and the availability of funding through credit facilities. The company aims at maintaining flexibility in funding by keeping committed credit lines available. Fair value estimations: The carrying amounts of the financial assets and liabilities in the statement of financial position approximate fair values at the year-end. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. 12

14 Notes to the Financial Statements 1.10 Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the company s activities. Revenue is shown net of value-added tax, estimated returns, rebates and discounts. Revenue is recognised as follows: a) Service income Service income is recognised on an accruals basis in accordance with the substance of the relevant agreements. b) Grant income Grant income is recognised on an accruals basis in accordance with the substance of the relevant agreements Standards, interpretations and amendments to published standards Standards, amendments and interpretations effective in 2011 but not relevant IFRS 3, Business Combinations Revised, (effective 1 July 2009) IAS 27, Consolidated and Separate Financial Statements Revised, (effective 1 July 2009) IFRS 1, First time Adoption of International Financial Reporting Standards Revised, (effective 1 July 2009). Amendments to IAS 32 Classification of rights issues, (effective 1 February 2010) Amendments to IAS 39, Financial Instruments: Recognition and Measurement Eligible Hedged Items, (effective 1 July 2009). Amendments to IFRS 2, Group cash-settled share-based payment transactions, (effective 1 January 2010). Improvements to IFRSs (Issued April 2009). Unless otherwise specified the amendments are effective for annual periods beginning on or after 1 January 2010 IFRIC 17, Distributions of Non-cash Assets to Owners, (effective 1 July 2009) IFRIC 18, Transfers of assets from customers, (effective for transfers from 1 July 2009) 13

15 Notes to the Financial Statements 1.11 Standards, interpretations and amendments to published standards (continued) Standards, amendments and interpretations that are not yet effective and have not been early adopted by the Company Amendment to IFRS 1, Limited exemption from comparative IFRS 7 disclosures for firsttime adopters, (effective 1 July 2010) Amendment to IAS 24, Related party disclosures, (effective 1 January 2011) Amendment to IAS 12, 'Income taxes' on deferred tax, (effective 1 January 2012) Standards, amendments and interpretations that are not yet effective and are not relevant to the Company s operations. Improvements to IFRSs (Issued May 2010). Unless otherwise specified the amendments are effective for annual periods beginning on or after 1 January 2011 Amendments to IFRS 1, 'First time adoption' on hyperinflation and fixed dates, (effective 1 July 2011) Amendment to IFRS 7, Disclosures Transfer of financial assets, (effective 1 July 2011) IFRS 9, Financial Instruments, (effective 1 January 2013) IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments, (effective 1 July 2010) Amendments to IFRIC 14, Pre-payments of a Minimum Funding Requirement, (effective 1 January 2011) 14

16 Notes to the Financial Statements 2. Operating profit R R The following items have been charged in arriving at operating profit: Auditors remuneration current year Legal fees Operating lease rentals office Staff costs (refer note 3) Depreciation Other expenses Total costs of goods sold administration and other expenses Staff costs Salaries and wages Average number of persons employed over the period: - Full time Computer equipment Opening carrying amount Additions Depreciation (18 733) (14 770) Closing carrying amount Cost Less accumulated depreciation (41 165) (22 432) Closing carrying amount Receivables and prepayments Trade receivables Other receivables Receiver of Revenue - VAT All current receivables are due within 6 months from the statement of financial position date and therefore it is deemed that the fair value equates the cost as presented above. 15

17 Notes to the Financial Statements R R 6. Cash and cash equivalents Standard Bank Current Account Corporate Card Account (2 679) (6 064) Trade and other payables Trade payables Other payables Receiver of Revenue VAT Cash flows from operations Net surplus (deficit) for the year ( ) Adjusted for: Depreciation ( ) Changes in working capital: ( ) Decrease (increase) in trade and other receivables ( ) (Decrease) increase in trade and other payables ( ) Cash utilised in operations ( ) ( ) 9. Related party transactions Borrowings Loan from Citrus Growers Association of Southern Africa Services rendered to/(from) related parties Citrus Growers Association of Southern Africa Citrus Growers Association of Southern Africa ( ) Income Tax The company is exempt from the payment of normal income tax in terms of S10(1)(cN). 16

18 Detailed Statement of Comprehensive Income R R Income Revenue Services rendered Citrus Growers Association Other operating income Grant income South African Citrus Nurserymen s Association Grant income AgriSETA Grant income Industrial Development Corporation Grant income Postharvest Innovation Programme Grant income Engen Sale of production learning material Sale of Citrus Postharvest Series Learning material usage rights Capacity building workshops Bursary fund income Citrus Industry Trust Bursary fund income AgriSETA Bursary fund income BEEBS Internship funding AgriSETA Workplace experience grant funding AgriSETA Learning material development fund Administration expenses ( ) ( ) Accounting and audit fees Bad debts Bank charges Computer expenses Consulting fees Depreciation Insurance Printing and stationery Staff training Sundry expenses Telephone, postage and fax

19 Detailed Statement of Comprehensive Income R R Operating expenses ( ) ( ) Advertising, promotions and recruitment Board costs Bursary fund costs Bursary fund industry exposure program Bursary pay-outs Capacity building workshops Internship allowance Learning programme development Learning material development Leave pay Legal fees Mentorship funding Rent: office Salaries Travel and accommodation Visual learning material development Workplace experience grants Net surplus/(deficit) for the year ( ) 18