Greenpeace Environmental Organisation NPC (Registration Number 2008/004583/08) Financial Statements for the year ended 31 December 2016

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1 Financial Statements for the year ended 31 December

2 General Information Country of incorporation and domicile Nature of business and principal activities Directors Registered Office South Africa The company is engaged in the promotion and advocacy for fundamental human rights with respect to the environment. Brian Bright Kagoro (Chairman) Hakima Abbas Sophia Gallina-Haitsma Ketty Olive Lubandi Emilia Siwingwa Wame Nenegaleh Moisme Imara Ajagni Rolston Ground Floor 293 Kent Avenue Randburg Johannesburg 2194 Postal Address Postnet Suite 125 Private Bag X09 Melville Johannesburg 2109 Bankers Auditors Secretary Standard Bank of South Africa ECO Bank Mercantile Bank Bonani Chartered Accountants Njeri Kabeberi Company Registration number 2008/004583/08 Level of assurance Preparer These financial statements have been audited in compliance with the applicable requirements of the Companies Act of South Africa. Gert Cornelius I. Combrink CA(SA) 2

3 Index The reports and statements set out below compromise the financial statements presented to the head office: Directors' Responsibilities and Approval 4-5 Directors' Report 6-7 Independent Auditors' Report 8-9 Statement of Financial Position 10 Statement of Comprehensive Income 11 Statement of Changes in Accumulated Funds and Reserves 12 Statement of Cash Flows 13 Accounting Policies Notes to the Financial Statements Detailed Statement of Comprehensive Income 31 Page 3

4 Directors' Responsibilities and Approval The directors are required in terms of the Companies Act of South Africa to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial information included in this report. It is their responsibility to ensure that the financial statements fairly present the state of affairs of the company as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with International Financial Reporting Standards. The external auditors are engaged to express an independent opinion on the financial statements. The financial statements are prepared in accordance with International Financial Reporting Standards and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimated. The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the company and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the directors set standards for internal control aimed at reducing the risk of errors or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the company and all employees are required to maintain the highest ethical standards in ensuring the company's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus on risk management in the company is on identifying, assessing, managing and monitoring all known forms of risk across the company. While operating risk cannot be fully eliminated, the company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The code of corporate practices and conduct has been integrated into company strategies and operations. The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial systems. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. The external auditors are responsible for independently auditing and reporting on the company's financial statements. The financial statements have been examined by the company's external auditors and their report is presented on page 8 and 9. 4

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6 Directors' Report The directors submit their report for the year ended 31 December Review of Activities Main business and operations The company is engaged in the promotion and advocacy for fundamental human rights with respect to the environment, with particular concern for conservation, rehabilitation and protection of the natural environment and the rights to secure an environment that is not harmful to people's health and wellbeing and to undertake such actions and activities as may serve these purposes, primarily within the republic of South Africa, the Democratic Republic of the Congo, Senegal, and Cameroon, but also in other parts of Africa and the world. The operating results and state of affairs of the company are fully set out in the attached financial statements and do not in our opinion require any further comment. Net deficit of the company was R2,728,583 (2015: R2,613,417 surplus). Greenpeace Environmental Organisation NPC has been approved as a public benefit organisation in terms of section 30 of the income tax act and the receipts and accruals are exempts from income tax in terms of section 10(1)(cN) of the act. Registered Office Ground Floor 293 Kent Avenue Randburg Johannesburg 2194 Postal Address Postnet Suite 125 Private Bag X09 Melville Johannesburg Going Concern The financial statements have been prepared on the basis of accounting policies applicable to a going concern. The basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. 3 Events of the reporting period The directors are not aware of any matter or circumstances arising since the end of the financial year. 4 Directors' interests in contracts No material contracts in which the directors have interest were entered into during the year. 6

7 Directors' Report 5 Authorised and issued share capital The company has no share capital as it is a non-profit company of the Companies Act of South Africa. 6 Directors The directors of the company during the year and to the date of this report are as follows: Name Brian Bright Kagoro (Chairman) Hakima Abbas Sophia Gallina-Haitsma Ketty Olive Lubandi Emilia Siwingwa Wame Nenegaleh Moisme Imara Ajagni Rolston 7 Auditors Bonani Chartered Accountants (South Africa) were appointed auditors of Greenpeace Environmental Organisation NPC with effect from the financial year ended 31 December 2014 and takes over from PricewaterhouseCoopers Inc. 8 Secretary The secretary of the company is Njeri Kabeberi. 7

8 Bonani Chartered Accountants Inc. P O Box 1324, Johannesburg, nd Floor Marble Towers, Cnr Jeppe and Von Weilligh Streets, Johannesburg, 2001 (tel) (fax) ( ) info@bonanica-co.za Reg No. 2009/024810/21 Independent Auditors Report To the members of Greenpeace Environmental Organisation NPC. We have audited the annual financial statements of Greenpeace Environmental Organisation NPC, which comprise the statement of financial position as at 31 December 2016, the statement of comprehensive income, statement of changes in equity and the statement of cash flows for the year then ended, the notes, a summary of significant accounting policies and other explanatory information, as set out on pages 10 to 30. Directors Responsibility for the Annual Financial Statements The company s directors are responsible for the preparation and fair presentation of these annual financial statements in accordance with the International Financial Reporting Standards, and requirements of the Companies Act of South Africa. This responsibility includes designing, implementing and maintaining and internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors' Responsibility Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the annual financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the annual financial statements 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 entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the annual financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the annual financial statements present fairly, in all material respects, the financial position of Greenpeace Environmental Organisation NPC as at 31 December 2016, and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards, and the requirements of the Companies Act of South Africa. Other reports required by the Companies Act As part of our audit of the financial statements for the year ended 31 December 2016, we have read the Directors Report for the purpose of identifying whether there are material inconsistencies between these reports and the audited financial statements. The directors; report is the responsibility of the directors. Based on reading the directors Report, we have not identified material inconsistencies between this report and the audited financial D i r e c t o r s : M R a d e b e 8 P a g e

9 statements. However, we have not audited the Directors report and accordingly do not express an opinion on the report. Supplement information The supplementary information as set out on page 31 does not form part of the financial statements and is presented as additional information. We have not audited this information and accordingly do not express an opinion thereon. Per: M. N. Radebe Chartered Accountant (South Africa) Registered Auditor 15 April 2017 D i r e c t o r s : M R a d e b e 9 P a g e

10 Statement of Financial Position as at 31 December Notes ZAR ZAR ASSETS Non-Current Assets Property, plant and equipment Current Assets Due from Greenpeace International and regional offices Other receivables Cash and cash equivalents Total Assets FUNDS BALANCE AND LIABILITIES Long-term Liabilities Loan from related parties Current Liabilities Loan from related parties - short-term portion of loan Due to Greenpeace International and regional offices Trade and other payables Fund Balance Accumulated funds Total fund balance and liabilities

11 Statement of Comprehensive Income for the year ended 31 December Notes ZAR ZAR INCOME Contributions from Greenpeace International and regional offices Other Contributions and Donations Interest income Profit on exchange differences Profit on disposal of assets Total income Fundraising expenditure Total income less fundraising expenditure EXPENDITURE Campaigns Oceans Forests Sustainable Agriculture and Genetic Engineering Climate and Energy Campaign Coordination Campaign support Media and Communications Public information and outreach Action support Organisational support and Indirect Costs Interest Cost Foreign exchange loss Loss from disposal of assets Total non-fundraising expenditure Net surplus/(deficit) ( )

12 Statement of Accumulated Reserves for the year ended 31 December 2016 Total Fund Balance Fund Balance Notes ZAR ZAR Accumulated Fund Balance at 1 January Surplus for the year Accumulated Fund Balance at 31 December Deficit for the year ( ) ( ) Accumulated Fund Balance at 31 December

13 Statement of Cash Flows for the year ended 31 December Notes ZAR ZAR CASH FLOWS FROM OPERATING ACTIVITIES Surplus/(deficit) before interest and profit/loss on disposal of assets ( ) Add back depreciation (Increase)/decrease in receivables ( ) Increase/(decrease) in payables Net profit/(loss) on disposal of assets (69 468) (2 954) Net interest received Cash flows from operating activities ( ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment ( ) ( ) Disposal of property, plant and equipment Cash flows used in investing activities ( ) ( ) CASH FLOWS FROM FINANCING ACTIVITIES Cash raised from new loans Loans paid ( ) - Cash flows from financing activities Net increase/(decrease) in cash ( ) Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December

14 Accounting policies 1 Basis for preparation The financial statements have been prepared in accordance with International Financial Reporting Standards, and the Companies Act of South Africa. The financial statements have been prepared on the historical cost basis and incorporate the principal accounting policies set out below. They are presented in South African Rands. 1,1 Significant judgements and sources of estimation uncertainty In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts presented in the financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the financial statements. Significant judgements include: Residual value and useful lives of property and equipment The company calculates depreciation on property and equipment on a straight-line basis so as to write off the cost of assets over their expected useful lives. The economic life of an asset is determined based on existing wear and tear, economic and technical ageing, legal and other limits on the use of the asset to generate future cash flows, the company may accelerate depreciation charges to reflect the remaining useful life of the asset or record an impairment loss. The company determines residual values on an annual basis. Because residual values are the expected value at the end of an asset's useful life, the following process of estimation was required to estimate the useful life as at year end. Management determines the residual values and useful lives of the assets with reference to the company's policy for depreciation for that specific class of asset as well as the performance of the asset. Management reviews the remaining useful lives of all assets in the last year of their useful lives. 1,2 Property and equipment The cost of an item of property and equipment is recognised as an asset when: (i) it is probable that future economic benefits association with the item will flow to the company, (ii) the cost of the item can be measured reliably, and (iii) the cost of the item is in excess of R2,000 Property and equipment is initially measured at cost. 14

15 Accounting policies 1,2 Property and equipment (continued) Costs include costs incurred initially to acquire or construct an item of property and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property or equipment, the carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit and loss during the financial period in which they are incurred. Costs include costs directly attributed to bringing the asset to working condition for use as intended by management. Property and equipment is depreciated on the straight line basis over it's expected useful lives to the estimated residual value. Property and equipment is carried at cost less accumulated depreciation and any impairment losses. The useful lives of items of property and equipment have been assessed as follows: Item Furniture and fittings Motor vehicles Office equipment Computer equipment Campaign equipment Lease hold improvements Average useful life 6 years 5 years 3 years 3 years 5 years Remaining period of current lease The residual value, useful life and depreciation method of each asset is reviewed, and adjusted if appropriate, at the end of each reporting period. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount of another asset. The gain or loss arising from the derecognition of an item of property or equipment is included in profit or loss when the item is derecognised. The gain or loss arising from the derecognition of an item of property or equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than the asset's recoverable amount. 15

16 Accounting policies 1,3 Financial instruments Classification The company classifies financial assets and financial liabilities into the following categories: (i) Loans and receivables (ii) Financial liabilities measured at amortised cost Classification depends on the purpose for which the financial instruments were obtained / incurred and takes place at initial recognition. Classification is re-assessed on an annual basis, except for derivatives and financial assets designated as at fair value through profit and loss, which shall not be classified out of the fair value through profit and loss category. Initial recognition and measurement Financial instruments are recognised initially when the company becomes a party to the contractual provisions of the instruments. The company 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 and loss, transaction costs are included in the initial measurement of the instrument. Transaction costs on financial instruments at fair value through profit and loss are recognised in profit or loss. Subsequent measurement Loans and receivables are subsequently measured at amortised cost, using the effective interest method, less accumulated impairment losses. Financial liabilities at amortised cost are subsequently measured at amortised cost, using the effective interest method. 16

17 Accounting policies 1,3 Financial instruments (continued) Impairment of financial assets At each reporting date the company assesses all financial assets, other than those at fair value through profit or loss, to determine whether there is no objective evidence that a financial asset or group of financial assets has been impaired. For amount due to the company, significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy and default on payments are all considered indicators of impairment. Impairment losses are recognised in profit or loss. Impairment losses are reversed when an increase in the financial asset's recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the financial asset at the date that the impairment was reversed shall not exceed what the carrying amount would have been had the impairment not been recognised. Reversals of impairment losses are recognised in profit and loss except for equity investments classified as available for sale. Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in profit and loss within operating expenses. When such assets are written off, the write off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses. Receivables and payables from / to related parties These include loans to and from related companies and are recognised initially at fair value plus direct transaction costs. Loans to group companies are classified as loans and receivables. Loans from group companies are classified as financial liabilities and are measured at amortised cost. 17

18 Accounting policies 1,3 Financial instruments (continued) 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. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable 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. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in profit or loss within operating expenses. When a trade receivable is uncollectable, it is written off against the allowance account or trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in profit or loss. Trade and other receivables are classified as loans and receivables. 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 with original maturities of 3 months or less and bank overdrafts 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. Bank overdraft and borrowings Bank overdrafts and borrowings are initially measured at fair value net of transaction costs incurred, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the company's accounting policy for borrowing costs. 18

19 Accounting policies 1,3 Financial instruments (continued) Bank overdrafts and borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of liability for at least 12 months after the statement of financial position date. 1,4 Income tax Taxation was not provided for, as the company is a non-profit company incorporated in terms of the Companies Act and has been granted a tax exemption certificate in terms of section 10(1)(cN) of the Income Tax Act. 1,5 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. Operating leases - lessee Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease liability. This liability is not discounted. Any contingent rents are expensed in the period they are incurred. 1,6 Impairment of assets The company assesses at each end of the reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss. An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease. 19

20 Accounting policies 1,6 Impairment of assets (continued) An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets other than goodwill may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss of assets carried at a cost less accumulated depreciation or amortisation other than goodwill is recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset is treated as a revaluation increase. 1,7 Employee benefits Short-term employee benefits The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted. The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The expected cost of profit sharing and bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance. 1,8 Revenue (a) Grant income Direct payments made by Greenpeace International in respect of expenditure relating to the South African operations are recognised as income in the period in which such payments are made, and the corresponding amounts included in the expenditure so as to reflect more comprehensively the operating costs of the South African operations. All other income is generally brought to account in the period in which it was received. 20

21 Accounting policies 1,8 Revenue (continued) Repayment of grant related income is applied first against any unamortised deferred credit set up in respect of the grant. To the extent that the payment exceeds any deferred credit, or where no deferred credit exists, the repayment is recognised immediately as an expense. Repayment of a grant related to an asset is recorded by increasing the carrying amount of the asset or reducing the deferred income balance by the amount payable. The cumulative additional depreciation that would have been recognised to date as an expense in the absence of the grant is recognised immediately as an expense. (b) Interest income Interest is recognised in surplus or deficit, using the effective interest rate method. (c) Donations income Donations income is recognised as revenue when it is paid into the bank account. (d) Montly donation income collected via debit orders Donation income collected via monthly debit orders are held in a Mercantile bank clearing account for the duration of the cooling-off period stipulated by the Consumer Protection Act 68 of During the cooling-off period the donor retains ownership of the funds and can recall their donation at any time and for any reason in terms of the Act. Greenpeace Environmental Organisation has no legally enforceable claim to donation income and only gains ownership of donations when donations collected via debit orders are transferred from the clearing account to the organisation's current account once the cooling-off period has passed. Income is recognised when ownership is deemed to have transferred. 21

22 Accounting policies 1,9 Translation of foreign currencies Foreign currency transaction A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of the reporting period: (i) foreign currency monetary items are translated using the closing rate; (ii) non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction; and (iii) non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognised in profit or loss in the period in which they arise. When a gain or loss on a non-monetary item is recognised to other comprehensive income and accumulated in equity, any exchange component of that gain or loss is recognised to other comprehensive income and accumulated in equity. When a gain to loss on a non-monetary item is recognised in profit or loss, any exchange component of that gain or loss is recognised in profit or loss. Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amount the exchange rate between the Rand and the foreign currency at the date of the cash flow. Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (functional currency) The financial statements are presented in South African Rands (ZAR), which is the company's functional and presentation currency. 22

23 Notes to the Financial Statements 2 New Standards and Interpretations 2.1 Standards and Interpretations Issued but not yet effective as at 31 December 2016 The company has decided not to early adopt the following standards and interpretations, which have been published and are mandatory for the company's accounting records for the future periods. Standard Effective Date IAS 7 Disclosure amendments 1 January 2017 IAS 12 Recognition of deferred tax assets for unrealised losses 1 January 2017 IFRS 2 Share based payment amendments 1 January 2018 IFRS 9 Financial Instruments 1 January 2018 IFRS 15 Revenue from contracts with customers 1 January 2018 IFRS 16 Leases 1 January Risk Management Capital risk management The company's objectives when managing capital are to safeguard the company's ability to continue as a going concern in order to provide benefits for stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The capital structure of the company consists of debt, which includes the borrowings disclosed in note 9 cash and cash equivalents, and equity as disclosed in the statement of financial position. There are no externally imposed capital requirements. There has been no changes to what the entity manages as capital, the strategy for capital maintenance or externally imposed capital requirements from the previous year. Financial risk management The company's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. 23

24 Notes to the Financial Statements 3 Risk Management (Continued) Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. Due to the nature of the underlying business, the company maintains flexibility in funding by keeping cash on hand. Surplus cash held by the company over and above the balance required for working capital management is invested in interest-bearing current accounts. The table below analyses the company's financial liabilities into relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows: Trade and other payables - less than 1 year Cash flow and fair value interest rate risk As the company has no significant interest bearing assets, the company's income and operating cash flows are substantially independent of changes in market interest rates. Credit risk Potential concentration of credit risk consists principally of cash investments and deposits. The company's main income stream is derived from grants received. Therefore, no trade receivables exist. The company deposits cash surpluses with major banks of high quality credit standing. Foreign exchange risk The company conducts transactions with its head office in the Netherlands and other branches of the head office. Transactions with these companies might result in receivables and payables denominated in currency that is not in South African Rands. The company does not hedge its foreign currency fluctuations. As the company receives funds that are denominated in foreign currency, there is an element of risk due to fluctuations in the rate of exchange. The company is further exposed to currency risk to the extent that some funds are held in foreign currency bank accounts. Price risk The company does not hold any investment in listed securities, nor does it hold any commodities. The company is therefore not exposed to price risk. 24

25 Notes to the Financial Statements 4 Financial assets by category The accounting policies for financial instruments have been applied to the line items below: Loans and Total Loans and Total Receivables Receivables Receivables (exclusive of repayments) Cash and cash equivalents Financial liabilities by category The accounting policies for financial instruments have been applied to the line items below: Financial Total Financial Total liabilities at liabilities at amortised amortised cost cost Payables Property and equipment Cost Accumulated Carrying Cost Accumulated Carrying Depreciation value Depreciation value Software (14 117) (993) Motor vehicles ( ) ( ) Office equipment ( ) ( ) Computer equipment ( ) ( ) Campaign equipment ( ) ( ) ( ) ( ) Reconciliation of property and equipment Opening Additions Disposals Depreciation Closing Balance Balance Software (13 124) Motor vehicles (88 691) Office equipment (70 212) Computer equipment (1 819) ( ) Campaign equipment (40 704) (82 926) (42 523) ( )

26 Notes to the Financial Statements 6 Property and equipment (continued) Reconciliation of property and equipment Opening Additions Disposals Depreciation Closing Balance Balance Software (993) Motor vehicles (90 198) Office equipment (61 035) Computer equipment ( ) Campaign equipment (75 081) ( ) A register containing the information required by Regulation 25(3) of the companies regulations, 2011, is available for inspection at the registered office of the company. The depreciation charged to the statement of comprehensive income during the year amounted to R547,683 (2015: R455,741) Lease rentals amounting to R2,451,631 (2015: R1,554,502) relating to property and equipment are included in the statement of comprehensive income as part of operating expenses. 7 Receivables Staff salary and expense advances Prepayments Lease deposits South African Revenue Services - Value added tax Amounts due from related parties Cash and cash equivalents For the purpose of the statement of cash flows, cash, cash equivalents and bank overdrafts include total cash assets less bank overdrafts: Cash on hand Bank balances

27 Notes to the Financial Statements 9 Long-term liability Loans from Greenpeace International Short-term portion of loans Minimum repayments due including interest - within one year in second to fifth year inclusive These loans are with a related party, are unsecured, and bears interest at 0.3% per year 10 Trade and other payables Short-term portion of loan Amounts due to related parties Lease accrual Deferred income Accrued leave pay Accrued expenses Staff advances Other payables Trade and other payables at fair value Income tax expense No provision has been made for 2015 or 2014 tax as the company has been granted a tax exemption certificate in terms of section 10(1)(cN) of the Income Tax Act. This is due to the fact that the company is incorporated as a non-profit company in terms of the Companies Act. 12 Employee benefit expense Salaries and Wages Number of employees Auditors remuneration Fees Commitments Operating leases - as lessee (expense) Minimum lease payments due - within one year in second to fifth year inclusive

28 Notes to the Financial Statements 15 Related parties Head office Branch of head office Directors Greenpeace International Greenpeace Australia Greenpeace USA Greenpeace Germany Greenpeace Belgium Greenpeace United Kingdom Greenpeace Canada Greenpeace Asia Greenpeace Brian Bright Kagoro (Chairman) Hakima Abbas Sophia Gallina-Haitsma Ketty Olive Lubandi Emilia Siwingwa Wame Nenegaleh Moisme Imara Ajagni Rolston Related party balances Payables to related parties Greenpeace International Greenpeace National offices Receivables from related parties Greenpeace International The receivables and payables to and from related parties arise from the annual budget allocation and transfer from Greenpeace International. It also includes expenditure paid on behalf of the entity by Head Office and branches of the Head Office and expenditure paid on behalf of the Head Office and branches of the Head Office by the entity. Related party transactions Contributions/Grants received Greenpeace International Greenpeace National Offices Compensation of board members and remuneration of senior management team The Chair and Members of the entity do not receive a salary, but their essential expenses incurred while serving the entity are refunded in line with the entity's policies. The entity's senior management team are delegated duties associated with an organisation's prescribed officers in terms of the company Act and are compensated as follows: 29

29 Notes to the Financial Statements 16 Compensation of board members and remuneration of senior management team (continued) Prescribed officers - for services as prescribed officers Salaries Other payments Total Annual aggregated non-fundraising expenditure by region Congo Basin (Cameroon and the Democratic republic of the Congo) Senegal Kenya South Africa Total Going concern The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. 19 Events after the reporting period The directors are not aware of any matter or circumstance arising since the end of the financial year. 30

30 Detailed Statement in support of Comprehensive income for the year ended 31 December Notes ZAR ZAR Operating expenses Employee costs Other employee related costs Advertising costs Auditors remuneration Bank charges Cleaning Computer expenses Consulting and professional fees Consumables Contributions and grants made Depreciation Fines and penalties Health and safety Hire Interest paid Lease rentals on operating lease Legal expenses Loss from disposal of assets Loss on exchange differences Motor vehicle expenses and insurance Permits and fees Postage Printing and publishing Repairs and maintenance Security Small parts Subscriptions Telephone and fax Travel and accommodation Utilities Video and film production