STATEMENT OF FINANCIAL POSITION Current assets 221 721 330 433 Cash and cash equivalents 19 104 610 213 038 Short term portion of intermediary loans 20 97 156 96 258 Receivables 21 279 1 279 Prepayments 22 959 1 141 Taxation 34 18 717 18 717 Non-current assets 370 377 244 587 Receivables from intermediaries 20 358 547 233 196 Investments in intermediaries 23 11 657 11 050 Property, plant and equipment 25 159 307 Intangible assets 26 14 34 Total assets 592 098 575 020 Liabilities Current liabilities 14 443 7 233 Trade creditors 864 781 Current portion of long term borrowings 28 7 477 5 999 Provisions 27 6 087 453 Employee benefits 15 - Non-current liabilities 124 527 129 422 Borrowings 28 124 527 129 422 Total liabilities 138 970 136 655 Net assets 453 128 438 365 Represented by Grant capital 24 285 738 285 738 KFW Grant 154 763 154 763 Department of Human Settlements Grant 130 975 130 975 Retained earnings 167 390 152 627 Total equity 453 128 438 365 62
Statement of Comprehensive Income Interest from lending operations 45 667 39 890 Other income 14 389 13 446 Disposal of fixed assets 12 (13) Bad debts recovered 1 317 312 Investment Interest 13 060 13 148 Total income 60 056 53 337 Operating expenses (36 920) (23 434) Compensation of employees 29 (17 559) (10 569) Salaries and wages (15 683) (8 823) Social contributions (1 876) (1 746) Goods and services (5 682) (5 451) Agency and outsourced services (1 178) (989) Communication (728) (769) Computers (269) (262) Consultants (388) (661) Lease payments (876) (877) Repairs and maintenance (22) (9) Training and staff development (456) (296) Travel and subsistence (948) (791) Other (817) (797) Other expenses (13 679) (7 414) Depreciation (186) (180) Amortisation (26) (13) Impairment provisions 20 (13 467) (7 221) Profit before interest and taxation 23 136 29 902 Interest paid (9 780) (10 087) Profit before taxation 13 356 19 816 Taxation 34 - (18 164) Fair value adjustment of associates 31 1 407 1 735 Profit after taxation 14 763 3 386 63
CASHFLOW STATEMENT Cash flows from operating activities Receipts 148 581 163 438 Revenue 45 667 39 890 Repayments of loans 89 854 110 386 Interest 13 060 13 162 Payments (254 360) (127 580) Compensation of Employees 29 (11 910) (11 811) Goods and Services (4 724) (4 362) Disbursements (227 305) (100 369) Interest and Rent on land (10 421) (10 935) Other payments - (103) Net cash flows from operating activities 35 (105 779) 35 858 Cash flows from investing activities Purchase of assets (55) (96) Proceeds from sale of assets 23 (14) Sundry income 800 202 Net cash flows from investing activities 768 92 Cash flows from financing activities Repayment of borrowings (3 417) (3 089) Net cash flows from financing activities (3 417) (3 089) Net increase/(decrease) in cash and cash equivalents (108 428) 32 862 Cash and cash equivalents at the beginning of the period 213 038 180 176 Cash and cash equivalents at the end of the period 104 610 213 038 64
Statement of Comparison to Budget Revenue from exchange transactions Actual Budget Variance 31 March 17 R000 R000 R000 % Explanation of material variance 45 667 42 174 3 493 8.3% Other income 13 872 5 842 8 030 137.5% Disposal of fixed assets 12-12 - Dividends 800 236 564 239.0% An intermediary declared a dividend that RHLF did not budget for Investment Interest 13 060 5 606 7 454 133.0% Higher interest rates together with starting the year with more cash than budgeted Total income 59 539 48 016 11 523 24.0% Interest paid (9 780) (9 570) (210) -2.2% Operating expenses (35 604) (27 767) (7 837) 28.2% Accommodation (902) (1 358) 456 33.6% Better lease terms were achieved than budgeted. Consulting, legal and audit (1 565) (1 347) (218) -16.2% Debtors provisions (12 150) (5 043) (7 107) 140.9% Communications and IT (567) (635) 68 10.7% Legal fees were incurred due to issues around the NPC status of RHLF. The intermediaries found the year challenging and had higher than expected write offs. Depreciation (212) (878) 666 75.8% A new system to assist small clients was not procured in a previous year, but the depreciation and amortisation was budgeted as a result of the timing of decisions. Employee costs (17 559) (14 923) (2 636) 17.7% An unbudgeted retention scheme was implemented during the year to ensure employees remained on board until after the merger Marketing and workshops (430) (743) 313 42.1% Due to time constraints as employees focused on the merger there was lower attendance at conferences Printing and stationery (372) (448) 76 17.0% Travel and entertainment (948) (1 776) 828-46.6% Due to time constraints as employees focued on the merger there was less travel to sign up new intermediaries Other (898) (616) (282) -45.8% Training costs were higher than budgeted as employees sought to improve their qualifications Profit before taxation 14 156 10 679 3 477 32.6% Taxation - - - 0.0% Fair value adjustment of 607-607 0.0% associates Net Profit 14 763 10 679 4 084 38.2% 65
Statement of Changes in Net Assets Contributed Capital KFW at 31 March 2017 Contributed Capital Department of Human Settlements Accumulated Surplus Net Assets R000 R000 R000 R000 Balance at 31 March 2015 154 763 130 975 149 241 434 979 Balance at 01 April 2015 154 763 130 975 149 241 434 979 Surplus for the period - - 3 386 3 386 Balance at 31 March 2016 154 763 130 975 152 627 438 365 Balance at 01 April 2016 154 763 130 975 152 627 438 365 Surplus for the period - - 14 763 14 763 Balance at 31 March 2017 154 763 130 975 167 390 453 128 66