AGRICULTURAL CREDIT ACCOUNT NOTES TO THE FINANCIAL STATEMENTS for the period 1 April 2002 to 17 March 2003 1 April 2002 17 March 2001-02 2003 2. Investment R R Balances as at 17 March 2003-963 987 746 Deposit in transit from the Department - 33 000 000 Corporation for Public Deposits 899 987 746 996 987 746 On 24 January 1996 Cabinet approved that the payment of interest on the investments of the Agricultural Credit Account be suspended 3. Loans to farmers 3.1 Long-term loans to farmers 280 842 496 226 919 965 3.2 Short-term loans Short-term portion of long-term loans 35 546 499 27 851 134 Capital payable 223 210 615 213 514 169 Less: Provision for capital portion of bad debts (36 000 000) (64 050 959) 222 757 114 177 314 344 4. Accounts receivable Interest 279 992 008 245 670 708 Less: Provision for interest portion of bad debts (30 000 000) (33 949 041) Rent 445 691 416 546 Receivables - 83 842 Receipt suspense - 97 052 250 437 699 212 319 107 5. Cash and cash equivalents Bank balance as at 17 March 2003-6 186 694 Deposit in transit from the Department - 2 219 574 Cash in transit from the Paymaster-General account 2 714 236 - Receipts deposited 569 235-3 283 471 8 406 268 6. Revenue Interest income 67 794 260 44 950 048 Interest exceeding capital - (22 899 610) Rent raised 33 286 660 Current account - 632 416 Cheques from previous year revenue returned to drawer - (99 235) Payments from revenue - (239 319) 67 827 546 22 344 960 Revenue for 2001/02 was overstated with approximately R38 million and 2002/03 with R22,8 million. For the 2002/03 financial year this was rectified. The decrease of R15,2 million is the result of a manual process that was undertaken during the year to rectify individual debt accounts. The system has now been changed to ensure that interest does not exceed capital. The possibility of a further overstatement of interest after the in duplum rule was applied by the Agricultural Credit Account exists. The accounts that might be affected are accounts that are normally in arrears and represent a minor percentage of the outstanding debt. The Agricultural Credit Account is in the process of verifying the accounts and any overstatement identified will be corrected. 174 Annual Report 2002/03
AGRICULTURAL CREDIT ACCOUNT NOTES TO THE FINANCIAL STATEMENTS for the period 1 April 2002 to 17 March 2003 1 April 2002 31 March 2001-02 2003 R R 7. Provision for doubtful debts Opening balance 76 000 000 66 000 000 Adjustment for the current year (10 000 000) 32 000 000 Closing balance 66 000 000 98 000 000 8. Notes to the cash flow statement 8.1 Cash generated by operating activities Retained (deficit)/surplus for the year 59 090 373 (35 366 115) Adjustment for: Interest income (67 794 260) (22 050 438) (8 703 887) (57 416 553) Movements in working capital: Decrease in loans and accounts receivable 46 401 102 137 483 893 Increase in accounts payable - 5 019 37 697 215 80 072 359 8.2 Cash and cash equivalents Cash and cash equivalents for the current year consist only of balances held with commercial banks. The Agricultural Credit Account no longer utilises the Paymaster-General account as in prior years. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts: Cash and cash equivalents 3 283 471 8 406 268 FINANCIAL STATEMENTS 175
1 Portion 1 of the farm Goedgeloof 569; 1/3 share in Portion 3 of the farm No. 44; 0,032788 share in Portion 14 of farm Het Goed Geloof 70 District: Swellendam 2 Farm Eden 893; Farm Wegdraai 944 District: Fauresmith 3 The farm Uniondale 867; Remaining extent of the Portion known as Prospek 1590 of the farm Rietfontein 8; Portion known as Oorskiet 1535 of the Portion known as Prospek 1590 of the farm Rietfontein 8 District: Bethlehem 4 Remainder of the farm Houtenbek 97; Portion 209 of the farm Mapochsgronde 500; The Farm Mapochsgronde 812; The Farm Mapochsgronde 822 5 Portion known as Saliebos 2092 of the farm Onverwag 372 District: Kroonstad 6 Portion 36 of Lot 25 No. 1955 ET District: Scottburgh 7 Remainder of the farm Goedgewaagd 630 District: Lindley 8 Portion 27 of the farm Vlakfontein 558; Remaining Portion of Portion 2 of the farm Tweefontein 560 9 Farm Boschjeslaagte 310 Farm Tochgekry 151 District: Lindley 10 Portion 0000 (Remainder) of the farm 0000394 Kareelaagte; Portion 0001 (Remainder) of the farm 0000394 Kareelaagte District: Bloemfontein 11 Portion 9 (Portion of Portion 3) of the farm Remhoogte 428 District: Ermelo 12 Koppie Een 84; De la Rey District: Vrede 145 271 300 430 50 50 267 305 500 343 340 126 700 176 Annual Report 2002/03
13 Portion 13 (Portion of Portion 6) of the farm Wolverand 425; Portion 24 (Portion of Portion 6) of the farm Wolverand 425; Portion 25 (Portion of Portion 6) of the farm Wolverand 425 14 Portion 4 of the farm New Klein Rivier 293; Portion 55 (Portion of Portion 51) of the farm Klipheuwel 291; Portion 45 (Portion of Portion 14) of the farm Klipheuwel 291; The Farm Boskop 444; Portion 44 (Portion of Portion 14) of the farm Klipheuwel 291; Portion 13 (Middel Klein Rivier) of the farm Klipheuwel 291; 2/5 share in the Remainder of the farm Klein Rivier 214; 2/5 share in the Remainder of the Farm Lower Waterfall 213 District: Uniondale 15 Portion 23 (Portion of Portion 1) of the farm Goedehoop; Remaining extent of Portion 8 (Portion of Portion 1) of the farm Goedehoop 301; Portion 30 (Portion of Portion 12) of the farm Sterkfontein 299; Portion 1 of the farm Goedehoop 302 District: Bethal 355 1 098 16 Sub 57 of Reserve No. 7A No 15826 District: Mangete 51 17 Portion 7 (portion of portion 1) of the farm Mooifontein 497; Portion 6 (portion of portion 1) of the farm Mooifontein 497 District: Amersfoort 270 18 Remaining extent of the farm England 523 District: Vryburg 19 Portion 39 (Portion of Portion 24) of the farm Tweefontein 183; Portion 40 (Portion of Portion 24) of the farm Tweefontein 183 District: Alma 20 Portion 9 (Portion of Portion 1 of the farm Erfdeel) of the farm Bankhoek No 464 21 Remaining extent of Portion 11 (Portion of Portion1) of the farm Holland 471 District: Morgenzon 22 Portion of Portion 12 (a Portion of Portion 3) of the farm Geduld 270 23 Portion 6 of the farm Klipdrift 422; Portion 7 of the farm Klipdrift 422; Portion 69 of the farm Klipdrift 422; Portion 195 of the farm Klipdrift 422 District: Potchefstroom 160 243 141 114 169 225 100 FINANCIAL STATEMENTS 177
24 Remainder of the farm Hanover 138 25 Portion 9 (Portion of Portion6) of the farm Potloodspruit 30 26 Portion 33 of Sub 25 No. 1955 Province: Kwazulu Natal 27 Portion 1 of the farm Zoo-als-hy-lykt 478; Portion 4 of the farm Zoo-als-hy-lykt 478; Portion 11 of the farm Zoo-als-hy-lykt 478; Portion 1 of the farm Grabe s Rust 495 District: Amersfoort 28 Remaining extent of the farm Voorwaarts 389 District: Ladybrand 29 Portion 206 (Portion of Portion 124) of the farm Grootvlei 272 Province: Gauteng 30 Sub Division 1 of the farm Belle Vue 10341 District: Umvoti 661 318 13 230 86 47 190 178 Annual Report 2002/03