ANNUAL FINANCIAL STATEMENTS

Transcription

1 THE HOLIDAY CLUB ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017

2 INDEX PAGE 1) THE HOLIDAY CLUB CHAIMAN S EPOT 3 2) LEISUE POPETY TUST MANAGEMENT ASSOCIATION 4 - NOTICE OF ANNUAL GENEAL MEETING MINUTES OF THE ANNUAL GENEAL MEETING POXY FOM ANNUAL FINANCIAL STATEMENTS 3) LEISUE POPETY TUST 24 - ANNUAL FINANCIAL STATEMENTS - SCHEDULE OF INVESTMENTS 4) THE LEISUE HOLIDAY CLUB LIMITED - NOTICE OF ANNUAL GENEAL MEETING MINUTES OF THE ANNUAL GENEAL MEETING POXY FOM ANNUAL FINANCIAL STATEMENTS SCHEDULE OF INVESTMENTS 33

3 THE HOLIDAY CLUB CHAIMAN S EPOT Greetings, dear Members What an exciting year it s been! The Holiday Club marks two very special milestones our 7 millionth holidaymaker and our 25th birthday! We surprised Mr David Selesho and his family at Margate Beach Club, with much fanfare, a surprise hamper with Holiday Club merchandise, a picnic on the beach and we gave him back the Points he used for his latest holiday! This is indeed a momentous occasion and we want to thank each and every one of you for helping us reach this huge milestone, especially on the year that we turn 25 years old! The National Consumer Commission (NCC) called an enquiry into the timeshare industry in order to deal with concerns raised by members of the public over the years. Compliance with legislation was emphasised and the Club is totally satisfied that we are compliant. We are confident that our submissions and explanations will be viewed positively and that the NCC will see the Club as a benchmark for good practice in the timeshare industry. The enquiry is necessary to ensure that all Clubs maintain the standard required to ensure the ongoing success of the industry. The Holiday Club recently launched two new products, which have been very well received by both old and new Members. The THC GO! is for those who are new to vacation ownership. GO! allows new Members to try out everything that The Holiday Club has to offer before purchasing their Points out right. Private esidence is our top-of-the-range resort offering, and features exclusive destinations within our most sought after resorts across South Africa. This is open to new and existing Members as an upgrade. We are, as always, hard at work to ensure that you have the best holiday ever at our resorts and I am sure you have seen the fruits of this labour, namely enhanced experiences and a wider variety of entertainment and experiences on-site. It has been an exciting year of celebration and growth and with your continued support, The Holiday Club will remain the best and biggest of its kind in southern Africa. Kind regards, The Chairman We heard what you had to say in our Annual Member Survey, and we are pleased to say that we received positive feedback on the whole. In response to your request for more accommodation in certain parts of the country, we have consolidated our inventory so that we can give you more accommodation options in the more popular, in-demand resorts.

4 LEISUE POPETY TUST MANAGEMENT ASSOCIATION

5 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL GENEAL MEETING NOTICE Private Bag 702, Port Shepstone, 4240.THC Head Office Tel: 0861 THC THC, Fax: 0861 FAX THC Executive Committee: J Beekman*, C J Allan, N Beekman, D Gray, B W Kritzinger, S McCarroll, A Oberholzer, M obertson, F Wolmarans. * Netherlands NOTICE OF MEETING Notice is hereby given that the Annual General Meeting of The Leisure Property Trust Management Association will be held at Beekman House, 3 Daly Street, Port Shepstone on Thursday 18 October 2018 at 09h00. AGENDA 1. Welcome. 2. Quorum, apologies and proxies. 3. Approval of the minutes of the Annual General Meeting held on 19 October Matters arising from the previous minutes. 5. Presentation of The Chairman s eport. 6. Presentation of the Annual Financial Statements for the year ended 31 December 2017 together with the Auditors eport thereon. 7. eappointment of the Auditors and acceptance of their remuneration. NOTE A member entitled to attend and vote is entitled to appoint a proxy to attend, speak, and on a poll, vote in his/ her stead, and such proxy need not be a member of the Association. By order of the Executive Committee

6 LEISUE POPETY TUST MANAGEMENT ASSOCIATION MINUTES OF THE ANNUAL GENEAL MEETING Minutes of the Annual General Meeting of The Leisure Property Trust Management Association held at Beekman House, 3 Daly Street, Port Shepstone on Thursday 19 October 2017 at 09h00 PESENT : Mr M obertson Chairman / Executive Committee Member Mrs C J Allan Executive Committee Member Mr S McCarroll Executive Committee Member Mrs L Singleton representing Vacation Management Services & Others as per attendance register 1. WELCOME The Chairman, Mr Mark obertson, welcomed all present. 2. APOLOGIES AND POXIES The following apologies were received: Messrs. J Beekman, N Beekman, S McCarroll, D Gray, B W Kritzinger, A Oberholzer, F Wolmarans and C Becket. The following proxies were received : C Becket, in favour of The Chairman. The Leisure Property Trust, in favour of Mrs L Singleton. 3. QUOUM Mr obertson advised that proper notice was given and noted that a quorum was present and declared the meeting open. 4. CONFIMATION OF THE MINUTES OF THE ANNUAL GENEAL MEETING HELD ON 20 OCTOBE 2016 The Minutes of the Annual General Meeting held on 20 October 2016 were taken as read. 5. MATTES AISING FOM THE MINUTES OF THE PEVIOUS MEETING There were no matters arising from the previous minutes. 6. PESENTATION OF THE CHAIMAN S EPOT Mr obertson presented his Chairman s eport as follows :- It gives me great pleasure to report to the members on the affairs of The Holiday Club for the financial period ending December The Holiday Club has had another busy year with many challenges in difficult economic times. The Club however has responded in a manner that reflects its abilities and experience and has successfully continued to manage all operational and financial aspects in line with the budget, as well as continuing to contribute to the reserve fund. The levies and accommodation cost equated to approximately 80% of the Club s total expenditure, thus making this a key focus to ensure that these costs were controlled and contained as much as possible, while not sacrificing on the quality of accommodation available to members. The Club was able to achieve this through their Managing Agent, Vacation Management Services, who manages more than 76% of Club owned accommodation. This resulted in lower increases in levies at all these resorts, which in turn enabled the Club to keep the membership fee increases both modest and below industry averages. The Club also traded ownership at certain resorts where we have limited control in order to help curtail annual costs. More resort options have been made available through our exchange partner, iexchange, who continues to enhance the variety and availability of accommodation, for the benefit of all Holiday Club members. The Club also closely managed the accommodation not being used by it s members by exchanging this with various exchange partners or clubs for accommodation that members were requesting. With a base of over members, The Holiday Club confirmed approximately points bookings for the year ended 31 December 2016 and this trend has continued into the current year.

7 LEISUE POPETY TUST MANAGEMENT ASSOCIATION MINUTES OF THE ANNUAL GENEAL MEETING 6. PESENTATION OF THE CHAIMAN S EPOT (cont) Keeping in mind the Club s dedication to delivering the utmost value to their members, they are continually monitoring and managing the quality and standards of accommodation and benefits available to members. The focus has been on enhancing the member experience by improving service levels, both at resorts and Head Office. Hospitality offerings are being standardised across Club owned resorts, as well as adding new facilities that offer members something unique. The Club s managing agent has overseen some significant refurbishments as well as the addition of many exciting facilities and recreational activities at Club owned resorts. I am certain these improvements have not gone unnoticed by members. Details of these enhancements can be found in our Private Edition magazine, as well as in the Club s regular newsletters. The Holiday Club strives to focus on adding variety, value and memorable holiday experiences for all members for years to come. Their strong financial and operational performance over the past year is a credit to the Club s leadership and I thank the Executive Committee and Management team for ensuring that the Club maintains its market-leading position. I also wish to acknowledge the role played by all employees in delivering these results and for their commitment to meeting the needs of members The Club thanks you for your valued feedback and requests that you continue to share all your holiday experiences, so they can continue to evolve and improve. 7. APPOVAL OF THE ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2016 The Annual Financial Statements appear on pages of the Private Edition together with the Auditors report. Mr obertson advised that the Annual Financial Statements have been approved by the Executive Committee and should there be no queries, we will deem these to be accepted. No further queries were received and the Annual Financial Statements were accepted. 8. E-APPOINTMENT OF THE AUDITOS & APPOVAL OF THEI EMUNEATION Mr obertson advised that the current Auditors, Messrs Marwick & Company Incorporated had been involved with the Group for a number of years, with strong knowledge of the legislations applicable, which was important. Mr obertson advised that the Board was of the view that they continue to act as the Auditors. Mr obertson asked if there were any objections to the re-appointment of Messrs Marwick and Company Incorporated as the Auditors for the ensuing year and approval of their remuneration as stated in the Annual Financial Statements. No objections were received and the Auditors were duly re-appointed and their remuneration accepted. 9. GENEAL Mr obertson advised that no correspondence was received Mr obertson enquired if there were any queries relating to any matters. There being no further matters for discussion the meeting closed at 09h25.

8 LEISUE POPETY TUST MANAGEMENT ASSOCIATION POXY FOM NUMBE OF VOTES I, being a member of The Leisure Property Trust Management Association and entitled to vote, hereby appoint: or failing him/ her or failing him/ her the Chairman of the meeting as my proxy, to speak and vote on my behalf at the Annual General Meeting of the Association to be held on Thursday, 18 October 2018, and at any adjournment thereof, as follows: Minutes of the Annual General Meeting held on 19 October 2017 In favour Against Abstain Annual Financial Statements for the year ended 31 December 2017 Appointment of the Auditors and approval of their emuneration Signed at on this day of Membership No. Signature Unless otherwise instructed specifically as above the proxy will vote as he/she thinks fit on all matters. Any member entitled to attend and vote is entitled to appoint a proxy to attend, vote and speak in his/ her stead and such proxy need not also be a member of the Association. Proxy forms should be forwarded to reach the postal address of the Association, Private Bag 702, Port Shepstone, 4240, Facsimile , sandyk@beekmangroup.com for the attention of the Company Secretary, no later than 48 hours prior to the commencement of the meeting, being 09:00on 16 October 2018.

9 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 GENEAL INFOMATION Country of incorporation and domicile Nature of business and principal activities egistered office Business address South Africa Management Association Beekman House 3 Daly Street Port Shepstone 4240 Beekman House 3 Daly Street Port Shepstone 4240 Postal address Private Bag 702 Port Shepstone 4240 Bankers Auditors Secretary Nedbank Limited Marwick & Company Inc. egistered Auditors Sandy Kathrayan-Moodley Tax reference number 9134/202/14/3 Preparer The annual financial statements were internally compiled by: J.H. Labuschagne Finance Executive Published 07 June 2018

10 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 The reports and statements set out below comprise the annual financial statements presented to the trustees: INDEX PAGE Independent Auditor s eport Statement of Financial Position 13 Statement of Comprehensive Income 14 Statement of Changes in Equity 15 Statement of Cash Flows 16 Accounting Policies Notes to the Annual Financial Statements The following supplementary information does not form part of the annual financial statements and is unaudited: Tax Computation 23 The annual financial statements set out on pages 13 to 22, which have been prepared on the going concern basis, were approved by the board on 07 June 2018 and were signed on its behalf by: C.J. Allan N. Beekman

11 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 INDEPENDENT AUDITO S EPOT To the Executive Committee Members of Leisure Property Trust Management Association Opinion We have audited the annual financial statements of Leisure Property Trust Management Association set out on pages 13 to 22, which comprise the statement of financial position as at 31 December 2017, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the annual financial statements, including a summary of significant accounting policies. In our opinion, the annual financial statements present fairly, in all material respects, the financial position of Leisure Property Trust Management Association as at 31 December 2017, and its financial performance and cash flows for the year then ended in accordance with International Financial eporting Standards. Basis for opinion We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor s esponsibilities for the Audit of the annual financial statements section of our report. We are independent of the company in accordance with the Independent egulatory Board for Auditors Code of Professional Conduct for egistered Auditors (IBA Code) and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IBA Code is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. esponsibilities of the trustees for the Annual Financial Statements The executive committee members are responsible for the preparation and fair presentation of the annual financial statements in accordance with International Financial eporting Standards, and for such internal control as the executive committee members determine is necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud or error. In preparing the annual financial statements, the executive committee members are responsible for assessing the association s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the executive committee members either intend to liquidate the association or to cease operations, or have no realistic alternative but to do so. DIECTOS: G.K. Marwick (Executive Chairman) C.A.(S.A.), Hons.B.Compt, A.C.I.S; D.B. Walton (Chief Executive Officer) C.A.(S.A.), B.Compt, DipAcc, PDAUD 30 Old Main oad, Hillcrest, 3610 P.O. Box 1470, Hillcrest, 3650 Ph: Fax: Docex: DX 6, Hillcrest E Mail: info@marwick.co.za; Web site: Practice No. : E

12 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 AUDITO S ESPONSIBILITIES FO THE AUDIT OF THE ANNUAL FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. easonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial statements. As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the annual financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the association s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the executive committee members. Conclude on the appropriateness of the executive committee members use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the association s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the annual financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the association to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the annual financial statements, including the disclosures, and whether the annual financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the executive committee members regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Per: D.B. Walton Director Marwick & Company Inc. egistered Auditors 30 Old Main oad Hillcrest June 2018 DIECTOS: G.K. Marwick (Executive Chairman) C.A.(S.A.), Hons.B.Compt, A.C.I.S; D.B. Walton (Chief Executive Officer) C.A.(S.A.), B.Compt, DipAcc, PDAUD 30 Old Main oad, Hillcrest, 3610 P.O. Box 1470, Hillcrest, 3650 Ph: Fax: Docex: DX 6, Hillcrest E Mail: info@marwick.co.za; Web site: Practice No. : E

13 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 STATEMENT OF FINANCIAL POSITION Notes ASSETS Non-Current Assets Deferred Tax Current Assets Inventories Trade and other receivables Cash and cash equivalents Total Assets EQUITY AND LIABILITIES Equity etained income LIABILITIES Current Liabilities South African evenue Services Trade and other payables Income received in advance Total Equity and Liabilities

14 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 STATEMENT OF COMPEHENSIVE INCOME Notes EVENUE Membership fees COST OF SALES Discount received Lifestyle centre fees ecoveries entals received Sundry income OPEATING EXPENSES 9 Accounting fees Auditors remuneration Bad debts Bank charges Client services department costs Commission paid Debt collection Discount allowed Lease rentals on operating lease Levies and accomodation Management fee Printing and stationery Subscriptions Operating surplus Interest eceived Finance costs ( ) ( ) Operating surplus before taxation Taxation Surplus for the year

15 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 STATEMENT OF CHANGES IN EQUITY etained Income Total Equity Balance at 01 January Surplus for the year Transfer of retained income from Tableview Cabanas Levy Fund Total contributions Balance at 01 January Surplus for the year Balance at 31 December

16 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 STATEMENT OF CASH FLOWS Cash flows from operating activities Notes Cash receipts from members Cash paid to suppliers and employees ( ) ( ) Cash (used up in) generated from operations 11 ( ) Interest received Finance costs ( ) ( ) Tax paid ( ) ( ) Net cash from operating activities Cash flows from financing activities Movement in membership fees received in advance Transfer of retained income from Table View Cabanas Levy Fund Net Cash from financing activities Total cash movement for the year Cash at the beginning of the year Total cash at end of the year

17 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 ACCOUNTING POLICIES 1. Significant accounting policies The principal accounting policies applied in the preparation of these annual financial statements are set out below. 1.1 Basis of preparation Initial recognition and measurement The annual financial statements have been prepared on the going concern basis in accordance with, and in compliance with, International Financial eporting Standards ( IFS ) and International Financial eporting Interpretations Committee ( IFIC ) interpretations issued and effective at the time of preparing these annual financial statements. These annual financial statements comply with the requirements of the SAICA Financial eporting Guides as issued by the Accounting Practices Committee and the Financial eporting Pronouncements as issued by the Financial eporting Standards Council. The annual financial statements have been prepared on the historic cost convention, unless otherwise stated in the accounting policies which follow and incorporate the principal accounting policies set out below. They are presented in ands, which is the association s functional currency. These accounting policies are consistent with the previous period. 1.2 Financial instruments Initial recognition and measurement The association classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. Financial instruments are measured initially at fair value, except for equity investments for which a fair value is not determinable, which are measured at cost and are classified as available-for-sale financial assets. For financial instruments which are not at fair value through profit or loss, transaction costs are included in the initial measurement of the instrument. Trade and other receivables Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Trade and other payables Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.

18 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 ACCOUNTING POLICIES 1.3 Tax Current tax assets and liabilities Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset. Current tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and liabilities Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Tax expenses Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period, except to the extent that the tax arises from: a transaction or event which is recognised, in the same or a different period, to other comprehensive income, or a business combination. Current tax and deferred taxes are charged or credited to other comprehensive income if the tax relates to items that are credited or charged, in the same or a different period, to other comprehensive income. 1.4 Leases Operating leases lessee Operating lease payments are recognised as an expense in the period they are incurred. 1.5 evenue evenue from the sale of goods is recognised when all the following conditions have been satisfied: the association has transferred to the buyer the significant risks and rewards of ownership of the goods; the association retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the association; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall be recognised only to the extent of the expenses recognised that are recoverable. evenue from membership fees is recognised on a monthly basis attributable to the relevant year to which the revenue relates. Membership fees which relate to the following financial period, September to December, is recognised as revenue in the current financial period. Membership fees which relate to the following financial period, invoiced in December, relating to January in the subsequent financial period, is recognised as membership fees received in advance. Interest is recognised, in profit or loss, using the effective interest rate method. 1.6 Inventories Inventories are measured at the lower of cost and net realisable value. 1.7 Provision and contingencies Provisions are recognised when: the association has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the obligation. The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

19 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 NOTES TO THE ANNUAL FINANCIAL STATEMENTS Deferred tax Deferred tax asset econciliation of deferred tax asset / (liability) At beginning of year Movement in prepayments (68641) (45 629) Movement in income received in advance Inventories Merchandise Consumables Trade and other receivables Trade receivables Prepayments Deposits VAT Prepaid levies BBL Debtors Trade receivables ageing Current Cash and cash equivalents Cash and cash equivalents consist of: Bank balances Trade and other payables Trade payables VAT Discount received in advance Insurance control Short term related party loan Other payables and provisions Trade and other payables Trade payables ageing Current days Days days days

20 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 NOTES TO THE ANNUAL FINANCIAL STATEMENTS Income received in advance * Income received in advance # Membership fees invoiced in advance ** Lifestyle fees received in advance *** Siteminder rentals received in advance * Income received in advance consists of membership fees for the following year, received prior to year end. # Membership fees invoiced in advance consists of fees invoiced in September which relate to the period from January to September in the following year, in conjunction with membership fees which are invoiced in December and relate to January in the following year. ** Lifestyle centre fees received in advance consists of fees for the following year, received prior to year end. *** Siteminder rentals income received in advance consists of rentals for the following year, received prior to year end Auditors remuneration Fees Investment revenue Interest revenue Bank Debtors Total interest income Taxation Major components of the tax expense Current Local income tax - current period Local income tax - recognised in current tax for prior periods ( ) Deferred Deferred tax ( ) (89 959) Cash generated from (used in) operations Surplus before taxation Adjustments for: Interest received ( ) ( ) Finance costs Other non-cash items Changes in working capital: 1 - Inventories ( ) Trade and other receivables ( ) Trade and other payables ( ) ( )

21 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 12. Membership fees A credit is passed for a cancellation when a new member is substituted. The new member is then invoiced accordingly. Where there is no substitution of membership, the outstanding membership fee is written off as a bad debt. 13. isk management Liquidity risk The association s risk to liquidity is a result of the funds available to cover future commitments. The association manages liquidity risk through an ongoing review of future commitments and credit facilities. Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored. Credit risk Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The association only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party. Trade receivables comprise a widespread member base. Management evaluated credit risk relating to member on an ongoing basis. If members are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the member, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored. 14. elated parties elationships Management companies Group entities Beekman Management Services Proprietary Limited Vacation Management Services Proprietary Limited Anytime Holidays Proprietary Limited iexchange Network Proprietary Limited The Leisure Holiday Club Limited The Leisure Property Trust TCT Leisure Proprietary Limited Timeless entals and Hire Proprietary Limited Group resorts - A comprehensive list is available for inspection at the registered office elated party balances Amounts included in trade receivables regarding related parties Anytime Holidays Proprietary Limited Body Bliss Day Spa Proprietary Limited The Leisure Holiday Club Limited The Leisure Property Trust Motor Yacht Kiara Proprietary Limited TCT Leisure Proprietary Limited Timeless entals and Hire Proprietary Limited Vacation Management Services Proprietary Limited Planet Hotels Proprietary Limited Calley Home Owners Association Beekman Managed Portfolio Proprietary Limited t/a Cayley ental Pool Premium Holiday Cover Proprietary Limited Cayley Mountain esort Private esidence Share Block Proprietary Limited Cayley Mountain esort Vacation Club Share Block Proprietary Limited Cayley Mountain esort Vacation Club Express Management Association Amounts included in trade payables regarding related parties Anytime Holidays Proprietary Limited I Exchange Network Proprietary Limited The Leisure Holiday Club Limited Beekman Management Services Proprietary Limited Vacation Management Services Proprietary Limited TCT Leisure Proprietary Limited Body Corporate of Formosa Bay Bronze Nickle Property Development Proprietary Limited Body Bliss Day Spa Proprietary Limited Calley Home Owners Association Timeless entals and Hire Proprietary Limited Crystal Ball Properties 0002 Proprietary Limited Sand Piper Dunes Proprietary Limited

22 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 NOTES TO THE ANNUAL FINANCIAL STATEMENTS elated parties (continued) Accounting fees paid to related parties Beekman Management Services Proprietary Limited Lease rentals paid to related parties Anytime Holidays Proprietary Limited Beekman Management Services Proprietary Limited Management fees paid to related parties Vacation Management Services Proprietary Limited Client service fees paid to related parties Beekman Management Services Proprietary Limited Debtors collection fees paid to related parties Vacation Management Services Proprietary Limited Special levies paid to related parties The Leisure Holiday Club Limited The Leisure Property Trust ent paid to related parties The Leisure Holiday Club Limited The Leisure Property Trust San Marthino Beach Club Express Management Association I Exchange Network Proprietary Limited Standard levies paid to related parties The Leisure Holiday Club Limited The Leisure Property Trust Expenses recovered from related parties I Exchange Network Proprietary Limited ecoveries paid to related parties Subsidiary entities

23 LEISUE POPETY TUST MANAGEMENT ASSOCIATION ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 TAX COMPUTATION Net surplus per statement of profit or loss and other comprehensive income Permanent differences Membership fees (Exempt income) ( ) Discount received ( ) Further exempt income in terms of s10(1)(e) (50 000) Expenses attributable to exempt income Temporary differences Movement in prepayments ( ) Income received in advanced 2016 ( ) Income received in advanced Taxable income for Tax 28% econciliation of tax balance Amount owing at the beginning of year Amount paid in respect of prior year ( ) Amount owing in respect of prior year Tax owing for the current year: Normal tax Per calculation Amount owing at the end of year

24 LEISUE POPETY TUST (EGISTATION NUMBE 4651/93) ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017

25 LEISUE POPETY TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 The reports and statements set out below comprise the annual financial statements presented to the trustees: INDEX PAGE eport of the independent auditors Statement of financial position 28 Statement of profit or loss and other comprehensive income 29 Notes to the financial statements APPOVAL AND STATEMENT OF ESPONSIBILITY The trustees are responsible for the maintenance of adequate accounting records and the preparation and integrity of the financial statements and related information. The external auditors are responsible for independently auditing and reporting on the fair presentation of financial statements in conformity with South African Auditing Standards. The financial statements have been prepared in accordance with International Financial eporting Standards for Small and Medium-sized entities. The trustees are also responsible for the trust s system of internal financial control. These are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements, and to adequately safeguard, verify and maintain accountability of assets, and to prevent and detect misstatement and loss. Nothing has come to the attention of the trustees to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review. The financial statements have been prepared on the going concern basis, since the trustees have every reason to believe that the trust has adequate resources in place to continue in operation for the foreseeable future. The financial statements which appear on pages 28 to 31 were approved by the trustees on 18 June 2018 and signed on their behalf by: N. Beekman C.Allan

26 LEISUE POPETY TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 INDEPENDENT AUDITOS EPOT Opinion We have audited the annual financial statements of The Leisure Property Trust set out on pages 29 to 31, which comprise the statement of financial position as at 31 December 2017, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the annual financial statements, including a summary of significant accounting policies. In our opinion, the annual financial statements present fairly, in all material respects, the financial position of The Leisure Property Trust as at 31 December 2017, and its financial performance and cash flows for the year then ended in accordance with International Financial eporting Standards for Small and Medium-sized Entities. Basis for opinion We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor s esponsibilities for the Audit of the annual financial statements section of our report. We are independent of the trust in accordance with the Independent egulatory Board for Auditors Code of Professional Conduct for egistered Auditors (IBA Code) and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IBA Code is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information The trustees are responsible for the other information. The other information comprises the Trustees eport which we obtained prior to the date of this report. Other information does not include the annual financial statements and our auditor s report thereon. Our opinion on the annual financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the annual financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the annual financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. esponsibilities of the trustees for the Annual Financial Statements The trustees are responsible for the preparation and fair presentation of the annual financial statements in accordance with International Financial eporting Standards for Small and Medium-sized Entities and for such internal control as the trustees determine is necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud or error. In preparing the annual financial statements, the trustees are responsible for assessing the trust s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the trustee or to cease operations, or have no realistic alternative but to do so. DIECTOS: G.K. Marwick (Executive Chairman) C.A.(S.A.), Hons.B.Compt, A.C.I.S; D.B. Walton (Chief Executive Officer) C.A.(S.A.), B.Compt, DipAcc, PDAUD 30 Old Main oad, Hillcrest, 3610 P.O. Box 1470, Hillcrest, 3650 Ph: Fax: Docex: DX 6, Hillcrest E Mail: info@marwick.co.za; Web site: Practice No. : E

27 LEISUE POPETY TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 Accounting and secretarial duties Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. easonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial statements. As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the annual financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the trust s internal control Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the trust s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the annual financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the trust to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the annual financial statements, including the disclosures, and whether the annual financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Supplementary information We communicate with the trustees regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Per: D.B. Walton Director Marwick & Company Inc. egistered Auditors 30 Old Main oad Hillcrest June 2018 DIECTOS: G.K. Marwick (Executive Chairman) C.A.(S.A.), Hons.B.Compt, A.C.I.S; D.B. Walton (Chief Executive Officer) C.A.(S.A.), B.Compt, DipAcc, PDAUD 30 Old Main oad, Hillcrest, 3610 P.O. Box 1470, Hillcrest, 3650 Ph: Fax: Docex: DX 6, Hillcrest E Mail: info@marwick.co.za; Web site: Practice No. : E

28 LEISUE POPETY TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 STATEMENT OF FINANCIAL POSITION Notes ASSETS Non current assets Investments Current assets Trade and other receivables Cash and cash equivalents Total assets CAPITAL AND LIABILITIES Capital Trust capital Current liabilities Trade and other payables Current provisions Total capital and liabilities

29 LEISUE POPETY TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 STATEMENT OF POFIT O LOSS AND OTHE COMPEHENSIVE INCOME INCOME ent received Discount received Interest received Dividends received Total income EXPENDITUE Accounting fees Auditor s remuneration Bank charges Interest Levies Printing and stationery Transfer fees Trustees Insurance

30 LEISUE POPETY TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 NOTES TO THE FINANCIAL STATEMENTS 1. BASIS OF PEPAATION The financial statements are prepared in accordance with South African Statements of International Financial eporting Standards for Small and Medium-sized entities. The financial statements are prepared under the historical cost convention as modified by the revaluation of certain property, plant and equipment, marketable securities and investment properties where appropriate. 1.1 INVESTMENTS All investments are initially recognised at cost, being the fair value of the consideration given and including acquisition charges associated with the investment. 1.2 OTHE Where applicable these are set out in the notes below INVESTMENTS Preference shares and linked debentures in Leisure Holiday Club Limited Ordinary shares in Leisure Holiday Club Limited # Investments The Trust acquires delinquent member s preference shares and linked debentures in Leisure Holiday Club Limited. At 31 December 2017 the Trust held 34,947 (2016:15,985) shares and debentures. # Investments stated at cost, comprise shares and loan obligations, sectional title and other direct or indirect real rights in immovable property in respect of timeshare units, together with the use and occupation rights attached to these units, which investments are held by the Trust on behalf of the Points holders. At year end the Points relating to those investments are apportioned as follows: Investment in shareblock companies Leasehold assets Sectional title assets Full Ownership Points Points Investments have been adjusted within the Holiday Club portfolio of investments with certain investments being transferred between Leisure Holiday Club Limited and Leisure Property Trust. esorts are subject to a points grading process and therefore the number of points assigned to each resort fluctuate.

31 LEISUE POPETY TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 NOTES TO THE FINANCIAL STATEMENTS TADE AND OTHE ECEIVABLES Trade receivables Prepayments VAT TUST FUNDS Balance at the beginning of the year evaluation of investment Introduction and adjustments within the Holiday Club portfolio of investments The Trust Fund comprises contributions made by the beneficial owners, known as the Points holders of the Investment and held by the Trust on their behalf, in respect of the use and occupation of timeshare rights attached to the share blocks and immovable property.this Fund will only be distributed to the Points holders in the event of the sale of the immovable property, or the termination of the Trust, in which event the amount will be distributed pari passu to the interest of the Points holders. 5. TAXATION No provision has been made for 2017 taxation as the trust has no taxable income. 6. ELATED PATIES elationships Group entities Leisure Property Trust Management Association Motor Yacht Kiara Proprietary Limited Scopeful 48 Proprietary Limited Bronze Nickel Property Development Proprietary Limited Teasdale Investments Proprietary Limited Leisure Property Trust Management Association t/a Sea n Sky Leisure Property Trust Management Association t/a Pebble Beach Leisure Property Trust Management Association t/a Tableview Cabanas Amounts included in trade payables regarding related parties Leisure Property Trust Management Association Motor Yacht Kiara Proprietary Limited elated party transactions ental received from related parties Leisure Property Trust Management Association Dividends received from related parties The Leisure Holiday Club Limited Assessment rates paid to related parties Motor Yacht Kiara Proprietary Limited Accounting fees under levies paid to related parties Beekman Management Services Proprietary Limited ental paid to related parties Scopefull 48 Proprietary Limited Bronze Nickel Property Development Proprietary Limited Leisure Property Trust Management Association Leisure Property Trust Management Association t/a Pebble Beach - - Teasdale Investments Proprietary Limited Leisure Property Trust Management Association t/a Tableview Cabanas - - Printing and Stationery paid to related parties Leisure Property Trust Management Association Levy recoveries received from related parties Leisure Property Trust Management Association

32 LEISUE POPETY TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 SCHEDULE OF INVESTMENTS KEY TYPE F/O - FULL OWNESHIP L/H - LEASEHOLD S/B - SHAEBLOCK S/T - SECTIONAL TITLE EGION CPEN - CAPE PENINSULA DAK - DAKENSBEG DUB - DUBAN EASC - EASTEN CAPE GAD - GADEN OUTE GTNG - GAUTENG KZNL - KWAZULU-NATAL LOWE SOUTH COAST KZNN - KWAZULU-NATAL NOTH COAST KZNU - KWAZULU-NATAL UPPE SOUTH COAST MPUM - MPUMALANGA NAMIB - NAMIBIA NPNW - NOTHEN POVINCE NOTH WEST WESC - WESTEN CAPE The Aloes KZNL S/B Avalon Springs WESC S/B 2 84 Bakgatla NPNW S/B 2 47 Bakubung NPNW S/B Bantry Bay CPEN S/B 2 94 Beacon Island esort GAD S/B Boulder Bay KZNN S/T Breakers KZNN S/B Brookes Hill GAD S/B 3 68 Burchells Bush Lodge MPUM S/B Bushman s Nek Berg & Trout esort DAK S/B Cabana Beach KZNN S/B Cabana Mio KZNU S/T Cape Gordonia WESC S/T 3 86 Castleburn DAK S/B Champagne Lane DAK S/B Champagne Sports DAK S/B 2 47 Champagne Valley DAK S/B Club Mykonos Langebaan WESC S/T Club Ten KZNN S/B 5 97 Dikhololo NPNW S/B Doornkop Fish and Wildlife MPUM S/B Drakensberg Sun DAK S/B Dunkeld Country Estate MPUM S/B Durban Spa DUB S/T Fairways DAK S/B Falcon Glen Country Estate MPUM S/B Formosa Bay esort GAD S/T Garden oute Chalets GAD S/B 2 59 Glenmore Sands KZNL S/B Hartenbos Lagoon esort GAD S/B 1 72 Hermanus Beach Club WESC S/B 2 60 Hole in the Wall EASC S/B 5 95 Inverness CPEN L/H Kiara Lodge DAK S/B Kowie iver Chalets EASC S/T Kridzil KZNL S/B 3 53 Kruger Park Lodge MPUM S/B Kwa Maritane NPNW S/B La Cote d Azur KZNL S/T La Montagne KZNN S/T La ochelle KZNN S/B Labori KZNN S/B 3 60 Little Eden NPNW S/B Little Switzerland DAK S/B 1 20 Mabalingwe Nature eserve NPNW S/B Mabula NPNW S/B Magalies Park NPNW S/B Manyane NPNW S/B Manzi Monate NPNW S/B Margate Sands KZNL S/T Midlands Saddle and Trout DAK S/B Mount Amanzi NPNW S/B Mount Champagne DAK S/B Mount Sheba MPUM S/B Mountain View DAK S/B Natal Spa DAK S/T Ngwenya Lodge MPUM S/B Pearly Shells KZNU S/B Pebble Beach KZNL L/H The Peninsula All-Suite Hotel - Standard CPEN S/B Perna Perna Mossel Bay GAD S/B Perna Perna Umdloti KZNN S/B Pine Lake esort MPUM S/B Port Owen Marina WESC S/B Qwantani DAK S/B iverbend Chalets DAK S/B iviera on Vaal GTNG S/B oyal Wharf EASC S/B Sabi iver Sun MPUM S/B Salt ock Palms KZNN S/B Sanbonani esort MPUM S/B Sandy Place KZNN S/B Savannah Sands KZNU S/T Sea n Sky KZNL L/H Seaviews GAD S/B Silversands DUB S/B Sobhengu KZNN S/B 2 47 Sodwana Bay Lodge KZNN S/B Sondela Nature eserve NPNW S/B 1 12 St Michaels Sands KZNL S/B Strand Pavilion WESC S/B Sudwala Lodge MPUM S/B Sunshine Bay Beach GAD S/B Banana Beach Club KZNL S/B Margate Beach Club KZNL S/B Illovo Beach Club KZNU S/B Qunu Falls Lodge DAK S/B Suntide Winklespruit KZNU F/O Tableview Cabanas CPEN S/B Umhlanga Cabanas KZNN S/B & L/H Umhlanga Sands KZNN S/B Umzumbe Chalets KZNL S/B 1 20 Villa del Sol KZNL S/B Wilderness Dunes GAD S/B Xanadu Holiday Chalets EASC S/B Weeks Points L/H - LEASEHOLD F/O - FULL OWNESHIP S/B - SHAEBLOCK S/T - SECTIONAL TITLE Unspecified

33 THE LEISUE HOLIDAY CLUB LIMITED (EGISTATION NUMBE 1995/006219/06)

34 THE LEISUE HOLIDAY CLUB LIMITED NOTICE OF ANNUAL GENEAL MEETING Private Bag 702, Port Shepstone, THC Head Office Tel: 0861 THCTHC,Fax: 0861 FAX THC Directors: J Beekman*, N Beekman*, C J Allan, W J Beekman, S McCarroll, C Becket, T Fairbairn, M obertson * Netherlands Company Secretary: S Kathrayan-Moodley Public Officer: J H Labuschagne NOTICE OF MEETING OF SHAEHOLDES / DEBENTUE HOLDES Notice is hereby given that the Annual General Meeting of The Leisure Holiday Club Limited will be held at Beekman House, 3 Daly Street, Port Shepstone on Thursday 18 October 2018 at 09h45. AGENDA 1. Open and Welcome. 2. Apologies and proxies 3. Quorum. 4. Presentation of the Minutes of the Annual General Meeting held on 19 October Matters arising from the previous minutes. 6. Presentation of the Annual Financial Statements for the year ended 31 December 2017 together with the report of the Directors and the report of the Independent Auditors. 7. e-appointment of the Auditors and presentation of their remuneration. 8. etirement and re-election of Directors in terms of the Company s Articles of Association. The following Director will retire, but is available for re-election: J Beekman. NOTE A preference shareholder is entitled to attend or appoint a proxy to attend on his/her behalf and such proxy need not be a shareholder of the Company. 3(a) (3) (i) A preference shareholder is only entitled to vote if the Company wishes to dispose of immovable property owned by it which is: in excess of 25% (twenty five percent) of the value of all immovable property held by it; the proceeds are not going to be reinvested in immovable property which is similar in nature to the property disposed of. BY ODE OF THE BOAD

35 THE LEISUE HOLIDAY CLUB LIMITED MINUTES OF THE ANNUAL GENEAL MEETING OF THE LEISUE HOLIDAY CLUB LIMITED Minutes of the Annual General Meeting of The Leisure Holiday Club Limited held at Beekman House, 3 Daly Street Port Shepstone, on Thursday 19 October 2017 at 09h45 PESENT : Mr M obertson Chairman /Chairman Mrs C J Allan Director Mr W J Beekman - Director & Others as per attendance register 1. WELCOME Mr Mark obertson, the Chairman welcomed all present. 2. APOLOGIES AND POXIES The following apologies were received : Messrs J Beekman, S McCarroll, C Becket, A Fairbairn and N Beekman The following proxies were received: The Leisure Property Trust, in favour of Ms J Fourie. Mr C Becket, in favour of The Chairman. 3. QUOUM Mr obertson advised that a quorum was present and declared the meeting open. 4. CONFIMATION OF THE MINUTES OF THE ANNUAL GENEAL MEETING HELD ON 20 OCTOBE 2016 The minutes were taken as read.e. 5. MATTES AISING FOM THE PEVIOUS MINUTES There were no matters arising from the previous minutes. 6. APPOVAL OF THE ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2016 TOGETHE WITH THE EPOT OF THE DIECTOS AND INDEPENDENT AUDITOS Mr obertson advised that the Annual Financial Statements found on Pages in the Private Edition were approved and presented at this meeting. There were no queries or comments relating to the Annual Financial Statements and these were accepted. 7. E-APPOINTMENT OF THE AUDITOS AND APPOVAL OF THEI EMUNEATION Mr obertson advised that the current Auditors were Messrs Marwick and Company Incorporated and their remuneration was stipulated in the Annual Financial Statements. Mr obertson advised that the Directors were satisfied with the Auditors performance and enquired if there were any objections. No objections were received and Messrs Marwick and Company Incorporated were re-appointed as the Auditors for the ensuing year and their remuneration was duly accepted. 8. ETIEMENT AND E-ELECTION OF DIECTOS IN TEMS OF THE COMPANY S ATICLES OF ASSOCIATION Mr obertson advised that the Directors retire on a rotational basis and that he would be retiring at this meeting but, he would be available for re-election. Mr obertson enquired if there were any objections to his appointment. No objections were received and Mr obertson was duly re-appointed. 9. GENEAL Mr obertson thanked the various departments for their efforts in making this another successful year. There being no further matters for discussion the meeting closed at 09h55.

36 THE LEISUE HOLIDAY CLUB LIMITED (egistration No. 1995/006219/06) POXY FOM I, being a member of The Leisure Holiday Club Limited and entitled to vote, hereby appoint: or failing him/her or failing him/her the Chairman of the meeting, as my/our proxy to speak and act on my behalf at the Annual General Meeting of the Company to be held on 18 October 2018, or at any adjournment thereof. Signed at on this day of Membership No. Signature Unless otherwise instructed specifically as above the proxy will vote as he/she thinks fit on all matters. NOTES A preference shareholder is entitled to attend the meeting or appoint a proxy to attend on his/her behalf, and such proxy need not be a shareholder of the Company. 3(a) (3) (i) A preference shareholder is only entitled to vote if the Company wishes to dispose of immovable property owned by it which is: In excess of 25% (twenty five percent) of the value of all immovable property held by it; and The proceeds are not going to be re-invested in immovable property which is similar in nature to the property disposed of. Any member entitled to attend and vote is entitled to appoint a proxy to attend, vote and speak in his/her stead and such proxy need not also be a shareholder of the Company. Proxy forms should be forwarded to reach the postal address of the Company, Private Bag 702, Port Shepstone, 4240 or Facsimile , for the attention of the Company Secretary, no later than 48 hours prior to the commencement of the meeting, being 09:45 on 16 October 2018.

37 THE LEISUE HOLIDAY CLUB LIMITED ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 GENEAL INFOMATION Company registration number 1995/006219/06 Country of incorporation and domicile Nature of business and principal activities Directors egistered office Business address South Africa Investment in immovable property J. Beekman N. Beekman C.J. Allan W.J. Beekman S. McCarroll M.D. obertson A.G. Fairbairn.C. Becket Beekman House 3 Daly Street Port Shepstone 4240 Beekman House 3 Daly Street Port Shepstone 4240 Postal address Private Bag 702 Port Shepstone 4240 Bankers Auditors Secretary Nedbank Limited Marwick & Company Inc. egistered Auditors Sandy Kathrayan-Moodley Tax reference number 9281/226/20/0 Level of assurance Preparer These annual financial statements have been audited in compliance with the applicable requirements of the Companies Act 71 of South Africa, The annual financial statements were internally compiled by: J.H. Labuschagne Finance Executive Published 12 June 2018

38 THE LEISUE HOLIDAY CLUB LIMITED ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 The reports and statements set out below comprise the annual financial statements presented to the shareholders: INDEX PAGE Independent Auditor s eport Directors esponsibilities and Approval 41 Directors eport 42 Certificate from the Company Secretary 43 Statement of Financial Position 44 Statement of Comprehensive Income 45 Statement of Changes in Equity 46 Statement of Cash Flows 47 Accounting Policies Notes to the Annual Financial Statements 50-51

39 THE LEISUE HOLIDAY CLUB LIMITED ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 INDEPENDENT AUDITO S EPOT To the Shareholders of The Leisure Holiday Club Limited Opinion We have audited the annual financial statements of The Leisure Holiday Club Limited, as set out on pages 44 to 51, which comprise the statement of financial position as at 31 December 2017, and the statement of other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes to the annual financial statements, including a summary of significant accounting policies. In our opinion, the annual financial statements present fairly, in all material respects, the financial position of The Leisure Holiday Club Limited as at 31 December 2017, and its financial performance and cash flows for the year then ended in accordance with International Financial eporting Standards and the requirements of the Companies Act 71 of South Africa, Basis for opinion We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor s esponsibilities for the Audit of the annual financial statements section of our report. We are independent of the company in accordance with the Independent egulatory Board for Auditors Code of Professional Conduct for egistered Auditors (IBA Code) and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IBA Code is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information The directors are responsible for the other information. The other information comprises the Directors eport and the Cerftificate from the Company Secretary as required by the Companies Act 71 of South Africa, 2008, which we obtained prior to the date of this report. Other information does not include the annual financial statements and our auditor s report thereon. Our opinion on the annual financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the annual financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the annual financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. esponsibilities of the directors for the Annual Financial Statements The directors are responsible for the preparation and fair presentation of the annual financial statements in accordance with International Financial eporting Standards and the requirements of the Companies Act 71 of South Africa, 2008, and for such internal control as the directors determine is necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud or error. In preparing the annual financial statements, the directors are responsible for assessing the company s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. DIECTOS: G.K. Marwick (Executive Chairman) C.A.(S.A.), Hons.B.Compt, A.C.I.S; D.B. Walton (Chief Executive Officer) C.A.(S.A.), B.Compt, DipAcc, PDAUD 30 Old Main oad, Hillcrest, 3610 P.O. Box 1470, Hillcrest, 3650 Ph: Fax: Docex: DX 6, Hillcrest E Mail: info@marwick.co.za; Web site: Practice No. : E

40 THE LEISUE HOLIDAY CLUB LIMITED ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 31 DECEMBE 2017 Auditor s responsibilities for the audit of the Annual Financial Statements Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. easonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial statements. As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the annual financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the annual financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the annual financial statements, including the disclosures, and whether the annual financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Per: D.B. Walton Director Marwick & Company Inc. egistered Auditor 30 Old Main oad Hillcrest June 2017 DIECTOS: G.K. Marwick (Executive Chairman) C.A.(S.A.), Hons.B.Compt, A.C.I.S; D.B. Walton (Chief Executive Officer) C.A.(S.A.), B.Compt, DipAcc, PDAUD 30 Old Main oad, Hillcrest, 3610 P.O. Box 1470, Hillcrest, 3650 Ph: Fax: Docex: DX 6, Hillcrest E Mail: info@marwick.co.za; Web site: Practice No. : E