DESIGNED BY GARTONE PRESS • 011 440 6126

AGM 2016LA LUCIA SANDS SHAREBLOCK (PTY) LTD14th December 2016 - 11h00Riverside Hotel, 10 Kenneth Kaunda Road, Durban North, Durban

Riverside Hotel, 10 Kenneth Kaunda Road, Durban North, Durbanwww.laluciasands.com

AGM 2016 01

INDEXDear Shareholder,

Enclosed please fi nd the following documents with regard to the Annual General Meeting of La Lucia Sands Shareblock (Pty) Ltd.

Should you wish to have any matters specifi cally raised at the meeting then please submit same in writing, to be received at least 48 hours before the meeting commences.

Such notice can either be:emailed accountant@laluciasands.comfaxed 031 572 2376or posted P0 Box 557, uMhlanga Rocks, KwaZulu Natal, 4320

Included the following: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE1. Notice of the Annual General Meeting & Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 022. Explanatory Notes of the Meeting Notice and Agenda of the Annual General Meeting . . . . . . . . . . . . 033. Minutes of the Annual General Meeting held on 14th December 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 044. Annual Financial Statements for the year ended 31 December 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 065. Insurance Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .276. Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .297. RSVP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

BY ORDER OF THE BOARD

REGISTERED ADDRESS: 58 Marine Drive La Lucia KwaZulu Natal 4510

AGM 2016 03

EXPLANATORY NOTES OF THE NOTICE AND AGENDA OF THE ANNUAL GENERAL MEETING

1. Record DateThe record date set by the Board in terms of Section 59(1) of the Companies Act 2008, which is the date on which the Company’s share register is closed for the purposes of determining which shareholders are entitled to receive this Notice, and to participate in the vote at this Annual General Meeting is 1st December 2016.

2. Proxies2.1. Shareholders are reminded that:

• A shareholder entitled to attend and vote at the Annual General Meeting may appoint a proxy to attend, participate in and vote at the Annual General Meeting in the place of the relevant shareholder;

• A proxy holder need not be a shareholder of the Company.• In terms of Section 63 (1) of the Companies Act, any person attending or participating in a

meeting of shareholders must present reasonably satisfactory identifi cation and the person presiding at the meeting must be reasonably satisfi ed that the right of any person to participate in and vote (whether as shareholder or proxy for a shareholder) has been reasonably verifi ed.

2.2. For the convenience of each shareholder, a pre-numbered form of proxy is attached hereto. All proxies are pre-numbered and those numbers are specifi c to each shareholder. No other proxy form that has a di� erent allocated number will be valid. A replacement proxy form, if needed, can be obtained from accountant@laluciasands.com or via fax 031 5722736. Duly completed proxies must be received at the Company’s Registered O� ce: 58 Marine Drive, Umhlanga Rocks, 4320, not later than 11h00 on Friday, 9 December 2016.

3. Voting3.1. For an ordinary resolution to be adopted at a shareholders’ meeting, it must be supported by

more than 50% of the shareholders who voted on the resolution, as provided in section 65 (7) of the Companies Act.

3.2. For a special resolution to be adopted at a shareholders’ meeting, it must be supported by more than 75% of the shareholders who voted on the resolution, as provided in section 65 (9) of the Companies Act.

4. QuorumSubject to the provisions of the Companies Act, no business shall be transacted at any shareholders’ meeting unless a quorum of shareholders is present at the time when the meeting proceeds to business. A quorum at any shareholders’ meeting shall be no less than 25% of all the voting rights that are entitled to be exercised in respect of at least one matter to be decided at the meeting and at least three shareholders entitled to vote are present or by proxy.

5. Remuneration of DirectorsIn terms of Section 66(9) of the Companies Act, the remuneration of the Directors must be approved by a Special Resolution of shareholders within the previous two years.

6. Nomination and election of DirectorsThe number of directors, unless otherwise determined by the Company in a shareholders’ meeting, shall be not less than 3 and not more than 7. One third of the number of the directors are required to retire. A retiring director is eligible for re-election. B.Levy resigns by rotation and is eligible for re-election. PJ Lishman and D Viljoen were elected as Directors during the year, to fi ll casual vacancies, and are available for election at the shareholders’ meeting.

Nominations for Directors must be lodged with the Company secretary by no later than 1 August each year. The appointment if 2 or more persons as directors of the Company by a single resolution shall not be moved unless a resolution that it shall be so moved has fi rst been agreed to by the meeting without any vote against it.

02 AGM 2016

NOTICE OF THE ANNUAL GENERAL MEETINGLA LUCIA SANDS SHARE BLOCK (PTY) LTD

Registration No: 1974/001166/07

NOTICE is hereby given that an Annual General Meeting of the Shareholders of La Lucia Sands Share Block (Pty) Ltd will be held at the Riverside Hotel, 10 Kenneth Kaunda Road, Durban North, Durban, on Wednesday 14th December 2016 at 11h00

AGENDA1. Open and Welcome2. Notice of Meeting3. Attendance, proxies and apologies4. Establishment of Quorum5. Presentation of the Minutes of the Annual General Meeting held on the 14th December 2015, and

matters arising therefrom6. Presentation of Operational Report from Managing Agents7. Presentation of the Audited Annual Financial Statements, together with the Directors’ Report and the

Auditors Report, in respect of the year ended 31 December 20158. Appointment of the Auditors for the fi nancial year ending 31 December 20169. Election and appointment of Directors10. Presentation and acceptance of Insurance Values, subject to any amendment11. Approval of Directors’ Remuneration12. General

BY ORDER OF THE BOARDFrontline Resort Management (Pty) LtdPer: WJ Charlton A.C.M.A. MPRECompany SecretaryDurban, 14 November 2016

AGM 2016 03

EXPLANATORY NOTES OF THE NOTICE AND AGENDA OF THE ANNUAL GENERAL MEETING

1. Record DateThe record date set by the Board in terms of Section 59(1) of the Companies Act 2008, which is the date on which the Company’s share register is closed for the purposes of determining which shareholders are entitled to receive this Notice, and to participate in the vote at this Annual General Meeting is 1st December 2016.

2. Proxies2.1. Shareholders are reminded that:

• A shareholder entitled to attend and vote at the Annual General Meeting may appoint a proxy to attend, participate in and vote at the Annual General Meeting in the place of the relevant shareholder;

• A proxy holder need not be a shareholder of the Company.• In terms of Section 63 (1) of the Companies Act, any person attending or participating in a

meeting of shareholders must present reasonably satisfactory identifi cation and the person presiding at the meeting must be reasonably satisfi ed that the right of any person to participate in and vote (whether as shareholder or proxy for a shareholder) has been reasonably verifi ed.

2.2. For the convenience of each shareholder, a pre-numbered form of proxy is attached hereto. All proxies are pre-numbered and those numbers are specifi c to each shareholder. No other proxy form that has a di� erent allocated number will be valid. A replacement proxy form, if needed, can be obtained from accountant@laluciasands.com or via fax 031 5722736. Duly completed proxies must be received at the Company’s Registered O� ce: 58 Marine Drive, Umhlanga Rocks, 4320, not later than 11h00 on Friday, 9 December 2016.

3. Voting3.1. For an ordinary resolution to be adopted at a shareholders’ meeting, it must be supported by

more than 50% of the shareholders who voted on the resolution, as provided in section 65 (7) of the Companies Act.

3.2. For a special resolution to be adopted at a shareholders’ meeting, it must be supported by more than 75% of the shareholders who voted on the resolution, as provided in section 65 (9) of the Companies Act.

4. QuorumSubject to the provisions of the Companies Act, no business shall be transacted at any shareholders’ meeting unless a quorum of shareholders is present at the time when the meeting proceeds to business. A quorum at any shareholders’ meeting shall be no less than 25% of all the voting rights that are entitled to be exercised in respect of at least one matter to be decided at the meeting and at least three shareholders entitled to vote are present or by proxy.

5. Remuneration of DirectorsIn terms of Section 66(9) of the Companies Act, the remuneration of the Directors must be approved by a Special Resolution of shareholders within the previous two years.

6. Nomination and election of DirectorsThe number of directors, unless otherwise determined by the Company in a shareholders’ meeting, shall be not less than 3 and not more than 7. One third of the number of the directors are required to retire. A retiring director is eligible for re-election. B.Levy resigns by rotation and is eligible for re-election. PJ Lishman and D Viljoen were elected as Directors during the year, to fi ll casual vacancies, and are available for election at the shareholders’ meeting.

Nominations for Directors must be lodged with the Company secretary by no later than 1 August each year. The appointment if 2 or more persons as directors of the Company by a single resolution shall not be moved unless a resolution that it shall be so moved has fi rst been agreed to by the meeting without any vote against it.

02 AGM 2016

NOTICE OF THE ANNUAL GENERAL MEETINGLA LUCIA SANDS SHARE BLOCK (PTY) LTD

Registration No: 1974/001166/07

NOTICE is hereby given that an Annual General Meeting of the Shareholders of La Lucia Sands Share Block (Pty) Ltd will be held at the Riverside Hotel, 10 Kenneth Kaunda Road, Durban North, Durban, on Wednesday 14th December 2016 at 11h00

AGENDA1. Open and Welcome2. Notice of Meeting3. Attendance, proxies and apologies4. Establishment of Quorum5. Presentation of the Minutes of the Annual General Meeting held on the 14th December 2015, and

matters arising therefrom6. Presentation of Operational Report from Managing Agents7. Presentation of the Audited Annual Financial Statements, together with the Directors’ Report and the

Auditors Report, in respect of the year ended 31 December 20158. Appointment of the Auditors for the fi nancial year ending 31 December 20169. Election and appointment of Directors10. Presentation and acceptance of Insurance Values, subject to any amendment11. Approval of Directors’ Remuneration12. General

BY ORDER OF THE BOARDFrontline Resort Management (Pty) LtdPer: WJ Charlton A.C.M.A. MPRECompany SecretaryDurban, 14 November 2016

AGM 2016 05

3. Ordinary Resolution Number Three (Appointment of Mr B V Alstone to the Board of directors)IT WAS RESOLVED to appoint Mr B V Alstone to the Board of directors.

For Against Abstain Shares voted629 174 8 803

78.38509% 21.61491% 0,00420% 100,00000%

4. Ordinary Resolution Number Four (Appointment of Mr D N Phillips to the Board of directors)IT WAS RESOLVED to appoint Mr D N Phillips to the Board of directors.

For Against Abstain Shares voted624 174 13 798

78.38509% 21.61491% 0,00420% 100,00000%

5. CLOSURE OF FORMAL BUSINESSThe Chairman declared that, as there was no further formal business for consideration, the formal part of the meeting was closed.

VERIFIED AS A TRUE RECORD OF PROCEEDINGS

30/01/2016_____________________________________ _____________________________________Chairman Date

04 AGM 2016

MINUTES OF THE 34TH ANNUAL GENERAL MEETINGOF SHAREHOLDERS OF LA LUCIA SANDS SHARE BLOCK (PTY) LIMITED

HELD IN THE BOUNDARY ROOM,1ST FLOOR, WANDERERS CLUB,

21 NORTH STREET, ILLOVO, JOHANNESBURG ONMONDAY, 14TH DECEMBER 2015 AT 11H00

PRESENT:Mr D Manthey (Chairman)33 Members present125 Proxies in favour of the Chairman8 Proxies in favour of other persons

DIRECTORS:Mr DA MantheyMr DN PhillipsMr BR Levy

AUDITOR:Mr MN Dama Dama and Associates

IN ATTENDANCE:Mr CD Kneale (Representing Corporate Governance Leaders CC, Chartered Secretaries – Company Secretary)

The Chairman welcomed all present to the meeting and noted that 42,24% of the shareholders was represented.

1. Ordinary Resolution Number One (Auditors’ report and Annual Financial Statements)IT WAS RESOLVED that the Auditors’ Report and Annual Financial Statements be taken as read.

For Against Abstain Shares voted631 174 6 805

78.38509% 21.61491% 0,00420% 100,00000%

2. Ordinary Resolution Number Two (Appointment of Auditor)To appoint Dama and Associates, with the designated auditor being Mr M N Dama, for the year ended 31 December 2016.

For Against Abstain Shares voted631 174 6 805

78.38509% 21.61491% 0,00420% 100,00000%

AGM 2016 05

3. Ordinary Resolution Number Three (Appointment of Mr B V Alstone to the Board of directors)IT WAS RESOLVED to appoint Mr B V Alstone to the Board of directors.

For Against Abstain Shares voted629 174 8 803

78.38509% 21.61491% 0,00420% 100,00000%

4. Ordinary Resolution Number Four (Appointment of Mr D N Phillips to the Board of directors)IT WAS RESOLVED to appoint Mr D N Phillips to the Board of directors.

For Against Abstain Shares voted624 174 13 798

78.38509% 21.61491% 0,00420% 100,00000%

5. CLOSURE OF FORMAL BUSINESSThe Chairman declared that, as there was no further formal business for consideration, the formal part of the meeting was closed.

VERIFIED AS A TRUE RECORD OF PROCEEDINGS

30/01/2016_____________________________________ _____________________________________Chairman Date

04 AGM 2016

MINUTES OF THE 34TH ANNUAL GENERAL MEETINGOF SHAREHOLDERS OF LA LUCIA SANDS SHARE BLOCK (PTY) LIMITED

HELD IN THE BOUNDARY ROOM,1ST FLOOR, WANDERERS CLUB,

21 NORTH STREET, ILLOVO, JOHANNESBURG ONMONDAY, 14TH DECEMBER 2015 AT 11H00

PRESENT:Mr D Manthey (Chairman)33 Members present125 Proxies in favour of the Chairman8 Proxies in favour of other persons

DIRECTORS:Mr DA MantheyMr DN PhillipsMr BR Levy

AUDITOR:Mr MN Dama Dama and Associates

IN ATTENDANCE:Mr CD Kneale (Representing Corporate Governance Leaders CC, Chartered Secretaries – Company Secretary)

The Chairman welcomed all present to the meeting and noted that 42,24% of the shareholders was represented.

1. Ordinary Resolution Number One (Auditors’ report and Annual Financial Statements)IT WAS RESOLVED that the Auditors’ Report and Annual Financial Statements be taken as read.

For Against Abstain Shares voted631 174 6 805

78.38509% 21.61491% 0,00420% 100,00000%

2. Ordinary Resolution Number Two (Appointment of Auditor)To appoint Dama and Associates, with the designated auditor being Mr M N Dama, for the year ended 31 December 2016.

For Against Abstain Shares voted631 174 6 805

78.38509% 21.61491% 0,00420% 100,00000%

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 07

GENERAL INFORMATIONCountry of incorporation and domicile . . . . . South Africa

Nature of business and principal activities . . . Operates a timeshare scheme

Directors . . . . . . . . . . . . . . . . . . D N Phillips. . . . . . . . . . . . . . . . . . . . . . D A Manthey. . . . . . . . . . . . . . . . . . . . . . BR Levy. . . . . . . . . . . . . . . . . . . . . . P J Lishman. . . . . . . . . . . . . . . . . . . . . . Dr PM Collins. . . . . . . . . . . . . . . . . . . . . . B V H Alstone. . . . . . . . . . . . . . . . . . . . . . RE Moraka

Registered o� ce . . . . . . . . . . . . . . 58 Marine Drive. . . . . . . . . . . . . . . . . . . . . . La Lucia. . . . . . . . . . . . . . . . . . . . . . KwaZulu Natal. . . . . . . . . . . . . . . . . . . . . . 4510

Business address . . . . . . . . . . . . . . 58 Marine Drive. . . . . . . . . . . . . . . . . . . . . . La Lucia. . . . . . . . . . . . . . . . . . . . . . KwaZulu Natal. . . . . . . . . . . . . . . . . . . . . . 4510

Postal address . . . . . . . . . . . . . . . P 0 Box 557. . . . . . . . . . . . . . . . . . . . . . uMhlanga Rocks. . . . . . . . . . . . . . . . . . . . . . KwaZulu Natal. . . . . . . . . . . . . . . . . . . . . . 4320

Auditor’s . . . . . . . . . . . . . . . . . . Baker Tilly Morrison Murray. . . . . . . . . . . . . . . . . . . . . . Registered Auditor

Secretary . . . . . . . . . . . . . . . . . Corporate Governance CC

Company registration number . . . . . . . . 1974/001166/07

Level of assurance . . . . . . . . . . . . . . These annual fi nancial statements have been audited in compliance with the applicable requirements of the Companies Act and the Share Blocks Control Act.

Preparer . . . . . . . . . . . . . . . . . . The annual fi nancial statements were independently compiled by:

. . . . . . . . . . . . . . . . . . . . . . C O’Malley

. . . . . . . . . . . . . . . . . . . . . . Chartered Accountant (S.A.)

06 AGM 2016

ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2015LA LUCIA SANDS SHAREBLOCK (PTY) LTD

REGISTRATION NO: 1974/001166/07

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 07

GENERAL INFORMATIONCountry of incorporation and domicile . . . . . South Africa

Nature of business and principal activities . . . Operates a timeshare scheme

Directors . . . . . . . . . . . . . . . . . . D N Phillips. . . . . . . . . . . . . . . . . . . . . . D A Manthey. . . . . . . . . . . . . . . . . . . . . . BR Levy. . . . . . . . . . . . . . . . . . . . . . P J Lishman. . . . . . . . . . . . . . . . . . . . . . Dr PM Collins. . . . . . . . . . . . . . . . . . . . . . B V H Alstone. . . . . . . . . . . . . . . . . . . . . . RE Moraka

Registered o� ce . . . . . . . . . . . . . . 58 Marine Drive. . . . . . . . . . . . . . . . . . . . . . La Lucia. . . . . . . . . . . . . . . . . . . . . . KwaZulu Natal. . . . . . . . . . . . . . . . . . . . . . 4510

Business address . . . . . . . . . . . . . . 58 Marine Drive. . . . . . . . . . . . . . . . . . . . . . La Lucia. . . . . . . . . . . . . . . . . . . . . . KwaZulu Natal. . . . . . . . . . . . . . . . . . . . . . 4510

Postal address . . . . . . . . . . . . . . . P 0 Box 557. . . . . . . . . . . . . . . . . . . . . . uMhlanga Rocks. . . . . . . . . . . . . . . . . . . . . . KwaZulu Natal. . . . . . . . . . . . . . . . . . . . . . 4320

Auditor’s . . . . . . . . . . . . . . . . . . Baker Tilly Morrison Murray. . . . . . . . . . . . . . . . . . . . . . Registered Auditor

Secretary . . . . . . . . . . . . . . . . . Corporate Governance CC

Company registration number . . . . . . . . 1974/001166/07

Level of assurance . . . . . . . . . . . . . . These annual fi nancial statements have been audited in compliance with the applicable requirements of the Companies Act and the Share Blocks Control Act.

Preparer . . . . . . . . . . . . . . . . . . The annual fi nancial statements were independently compiled by:

. . . . . . . . . . . . . . . . . . . . . . C O’Malley

. . . . . . . . . . . . . . . . . . . . . . Chartered Accountant (S.A.)

06 AGM 2016

ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2015LA LUCIA SANDS SHAREBLOCK (PTY) LTD

REGISTRATION NO: 1974/001166/07

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

08 AGM 2016

INDEXThe reports and statements set out below comprise the annual fi nancial statements presented to the shareholders:

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page

Directors’ Responsibilities and Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Independent Auditor’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Directors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Statement of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Notes to the Annual Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . 20

The following supplementary information does not form part of the annual fi nancial statements and is unaudited:

Detailed Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 09

DIRECTORS’ RESPONSIBILITIES AND APPROVALThe directors are required by the Companies Act and the Share Blocks Control Act, to maintain adequate accounting records and are responsible for the content and integrity of the annual fi nancial statements and related fi nancial information included in this report. It is their responsibility to ensure that the annual fi nancial statements fairly present the state of a� airs of the company as at the end of the fi nancial year and the results of its operations and cash fl ows for the period then ended, in conformity with the International Financial Reporting Standard for Small and Medium-sized Entities. The external auditor is engaged to express an independent opinion on the annual fi nancial statements.

The annual fi nancial statements are prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The directors acknowledge that they are ultimately responsible for the system of internal fi nancial 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 sets standards for internal control aimed at reducing the risk of error or loss in a cost e� ective manner. The standards include the proper delegation of responsibilities within a clearly defi ned framework, e� ective 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 of 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, control s, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

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 fi nancial record s may be relied on for the preparation of the annual fi nancial statements. However, any system of internal fi nancial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.

The directors have reviewed the company’s cash fl ow forecast for the year to 31 December 2016 and, in the light of this review and the current fi nancial position, they are satisfi ed that the company has or has access to adequate resources to continue in operational existence for the foreseeable future .

The external auditor is responsible for independently auditing and reporting on the company’s annual fi nancial statements. The annual fi nancial statements have been examined by the company’s external auditor and their report is presented on page 10 to 11.

The annual fi nancial statements set out on pages 12 to 26, which have been prepared on the going concern basis, were approved by the directors on 05 August 2016 and were signed on their behalf by:

___________________________________ ___________________________________P.J. Lishman D. MantheyDirector Director

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

08 AGM 2016

INDEXThe reports and statements set out below comprise the annual fi nancial statements presented to the shareholders:

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page

Directors’ Responsibilities and Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Independent Auditor’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Directors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Statement of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Notes to the Annual Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . 20

The following supplementary information does not form part of the annual fi nancial statements and is unaudited:

Detailed Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 09

DIRECTORS’ RESPONSIBILITIES AND APPROVALThe directors are required by the Companies Act and the Share Blocks Control Act, to maintain adequate accounting records and are responsible for the content and integrity of the annual fi nancial statements and related fi nancial information included in this report. It is their responsibility to ensure that the annual fi nancial statements fairly present the state of a� airs of the company as at the end of the fi nancial year and the results of its operations and cash fl ows for the period then ended, in conformity with the International Financial Reporting Standard for Small and Medium-sized Entities. The external auditor is engaged to express an independent opinion on the annual fi nancial statements.

The annual fi nancial statements are prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The directors acknowledge that they are ultimately responsible for the system of internal fi nancial 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 sets standards for internal control aimed at reducing the risk of error or loss in a cost e� ective manner. The standards include the proper delegation of responsibilities within a clearly defi ned framework, e� ective 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 of 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, control s, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

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 fi nancial record s may be relied on for the preparation of the annual fi nancial statements. However, any system of internal fi nancial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.

The directors have reviewed the company’s cash fl ow forecast for the year to 31 December 2016 and, in the light of this review and the current fi nancial position, they are satisfi ed that the company has or has access to adequate resources to continue in operational existence for the foreseeable future .

The external auditor is responsible for independently auditing and reporting on the company’s annual fi nancial statements. The annual fi nancial statements have been examined by the company’s external auditor and their report is presented on page 10 to 11.

The annual fi nancial statements set out on pages 12 to 26, which have been prepared on the going concern basis, were approved by the directors on 05 August 2016 and were signed on their behalf by:

___________________________________ ___________________________________P.J. Lishman D. MantheyDirector Director

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

10 AGM 2016

INDEPENDENT AUDITORS’ REPORT

Registered AuditorsChartered Accountants (SA)

20 Westville Road, Westville, 3629PO Box 1098, Westville, 3630

South AfricaDocex 21 Westville

T: +27 (0)31 267 5300F: +27 (0)31 267 1838

mail@bakertillymm.co.zawww.bakertillymm.co.za

To the shareholders of La Lucia Sands Shareblock (Pty) Ltd

We have audited the annual fi nancial statements of La Lucia Sands Shareblock (Pty) Ltd, as set out on pages 14 to 24, which comprise the statement of fi nancial position as at 31 December 2015, the statement of comprehensive income, statement of changes in equity and statement of cash fl ows for the year then ended, and the notes, comprising a summary of signifi cant accounting policies and other explanatory information.

Directors’ Responsibility for the Annual Financial Statements

The company’s directors are responsible for the preparation and fair presentation of these annual fi nancial statements accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and requirements of the Companies Act and the Share Blocks Control Act, and for such internal control as the directors determine is necessary to enable the preparation of annual fi nancial statements that are free from material misstatements, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these annual fi nancial 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 fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual fi nancial statements. The procedures selected depend on the auditor’s judgement,· including the assessment of the risks of material misstatement of the annual fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the annual fi nancial statements order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the e� ectiveness of the company’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 fi nancial statements.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 11

INDEPENDENT AUDITORS’ REPORT(contd.)

We believe that the audit evidence we have obtained is su� cient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the annual fi nancial statements present fairly, in all material respects, the fi nancial position of La Lucia Sands Shareblock (Pty) Ltd as at 31 December 2015, and its fi nancial performance and cash fl ows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and the requirements of the Companies Act and the Share Blocks Control Act.

Other matter

Without qualifying our opinion, we draw attention to the fact that supplementary information set out on pages 25 to 26 does not form part of the annual fi nancial statements and is presented as additional information. We have not audited this information and accordingly do not express an opinion thereon.

Other reports required by the Companies Act

As part of our audit of the annual fi nancial statements for the year ended 31 December 2015, we have read the directors’ report for the purpose of identifying whether there are material inconsistencies between that report and the audited annual fi nancial statements. The directors’ report is the responsibility of the directors. Based on reading that report we have not identifi ed material inconsistencies between it and the audited annual fi nancial statements. However, we have not audited the directors’ report and accordingly do not express an opinion thereon.

Baker Tilly Morrison MurrayPer: RA KempPartnerRegistered Auditor

28th October 2016

20 Westville RoadWestville3629

____________________________________________________________________________________________________

Partners: S Stanley, RA Kemp, J G Verburg, G A Dunn, M SharpleyConsultant: N GerberIRBA Practice No.: 903094An independent member of Baker Tilly International

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

10 AGM 2016

INDEPENDENT AUDITORS’ REPORT

Registered AuditorsChartered Accountants (SA)

20 Westville Road, Westville, 3629PO Box 1098, Westville, 3630

South AfricaDocex 21 Westville

T: +27 (0)31 267 5300F: +27 (0)31 267 1838

mail@bakertillymm.co.zawww.bakertillymm.co.za

To the shareholders of La Lucia Sands Shareblock (Pty) Ltd

We have audited the annual fi nancial statements of La Lucia Sands Shareblock (Pty) Ltd, as set out on pages 14 to 24, which comprise the statement of fi nancial position as at 31 December 2015, the statement of comprehensive income, statement of changes in equity and statement of cash fl ows for the year then ended, and the notes, comprising a summary of signifi cant accounting policies and other explanatory information.

Directors’ Responsibility for the Annual Financial Statements

The company’s directors are responsible for the preparation and fair presentation of these annual fi nancial statements accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and requirements of the Companies Act and the Share Blocks Control Act, and for such internal control as the directors determine is necessary to enable the preparation of annual fi nancial statements that are free from material misstatements, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these annual fi nancial 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 fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual fi nancial statements. The procedures selected depend on the auditor’s judgement,· including the assessment of the risks of material misstatement of the annual fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the annual fi nancial statements order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the e� ectiveness of the company’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 fi nancial statements.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 11

INDEPENDENT AUDITORS’ REPORT(contd.)

We believe that the audit evidence we have obtained is su� cient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the annual fi nancial statements present fairly, in all material respects, the fi nancial position of La Lucia Sands Shareblock (Pty) Ltd as at 31 December 2015, and its fi nancial performance and cash fl ows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and the requirements of the Companies Act and the Share Blocks Control Act.

Other matter

Without qualifying our opinion, we draw attention to the fact that supplementary information set out on pages 25 to 26 does not form part of the annual fi nancial statements and is presented as additional information. We have not audited this information and accordingly do not express an opinion thereon.

Other reports required by the Companies Act

As part of our audit of the annual fi nancial statements for the year ended 31 December 2015, we have read the directors’ report for the purpose of identifying whether there are material inconsistencies between that report and the audited annual fi nancial statements. The directors’ report is the responsibility of the directors. Based on reading that report we have not identifi ed material inconsistencies between it and the audited annual fi nancial statements. However, we have not audited the directors’ report and accordingly do not express an opinion thereon.

Baker Tilly Morrison MurrayPer: RA KempPartnerRegistered Auditor

28th October 2016

20 Westville RoadWestville3629

____________________________________________________________________________________________________

Partners: S Stanley, RA Kemp, J G Verburg, G A Dunn, M SharpleyConsultant: N GerberIRBA Practice No.: 903094An independent member of Baker Tilly International

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

12 AGM 2016

DIRECTORS’ REPORTThe directors have pleasure in submitting their report on the annual fi nancial statements of La Lucia Sands Shareblock (Pty) Ltd for the year ended 31 December 2015.

1. IncorporationThe company was incorporated on 05 June 1974 and obtained its certifi cate to commence business on the same day. The shareblock complex was o� cially opened and commenced accepting occupancy on 18 November 1982. On the 17 December 2014 your company amended its Memorandum of Incorporation and the name of the company changed to La Lucia Sands Share Block (Pty) Ltd with the registration number 1974/001166/07.

2. Nature of businessLa Lucia Sands Shareblock (Pty) Ltd carries on the business of a timeshare scheme. The company owns the complex known as La Lucia Sands situate at 58 Marine Drive, La Lucia, KwaZulu Natal. The company operates as a shareblock company in terms of the Share Blocks Control Act. The company operates in South Africa.

3. Review of fi nancial results and activitiesThe annual fi nancial statements have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Companies Act and the Share Blocks Control Act. The accounting policies have been applied consistently compared to the prior year.

Net levy defi cit of the company was R 253,890 (2014: defi cit R 239,498 ).

The company’s reserves at 31 December 2015 were R 1,604,228 (2014: R 1 ,858,118 ).

4. Share CapitalThere have been no changes to the authorised or issued share capital during the year under review.

5. DirectorsThe directors in o� ce at the date of this report are as follows:DN PhillipsDA MantheyBR LevyPJ Lishman Appointed 07 January 2016Dr PM Collins Resigned 09 January 2016BVH Alstone Resigned 30 January 2016RE Moraka Resigned 30 January 2016

6. Special ResolutionsNo special resolutions, the nature of which might be signifi cant to the shareholders in their appreciation of the state of a� airs of the company were made by the company during the period covered by this report.

7. Events after the reporting periodThe directors are not aware of any material event which occurred after the reporting date and up to the date of this report.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 13

8. Going concernThe directors believe that the company has adequate fi nancial resources to continue in operation for the foreseeable future and accordingly the annual fi nancial statements have been prepared on a going concern basis . The directors have satisfi ed themselves that the company is in a sound fi nancial position and that it has access to su� cient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware of any new material changes that may adversely impact the company. The directors are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation which may a� ect the company.

9. SecretaryThe company secretary is Corporate Governance CC.

Postal address Business addressPrivate Bag X4 Unit 55, 28 Galloway StreetJukskei Park Douglasdale2153 2191

10. Managing AgentThe managing agent of the company is Frontline Resort Management (Pty) Ltd

Postal address Business addressP.O. Box 11776 75 Woodford GroveMarine Parade StamfordhillDurban Durban4056 4001

Lodgement of returns to South African Revenue ServiceI hereby certify that for the year ended 31 December 2015 the company has lodged with the South African Revenue Service, all such returns as are required of a company in terms of the Income Tax Act, 1962, as amended and the Value Added Tax Act, 19~amended and that all such returns are true, correct and up to date.

___________________________________BR LevyPublic o� cer

Lodgement of returns with CIPCWe hereby certify that for the year ended 31 December 2015 the company has lodged with CIPC, all such returns as are required of a private company in terms of the Companies Act of South Africa, 2008, as amended and that all such returns are true, correct and up to date.

___________________________________CD KnealeCorporate Governance CC

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

12 AGM 2016

DIRECTORS’ REPORTThe directors have pleasure in submitting their report on the annual fi nancial statements of La Lucia Sands Shareblock (Pty) Ltd for the year ended 31 December 2015.

1. IncorporationThe company was incorporated on 05 June 1974 and obtained its certifi cate to commence business on the same day. The shareblock complex was o� cially opened and commenced accepting occupancy on 18 November 1982. On the 17 December 2014 your company amended its Memorandum of Incorporation and the name of the company changed to La Lucia Sands Share Block (Pty) Ltd with the registration number 1974/001166/07.

2. Nature of businessLa Lucia Sands Shareblock (Pty) Ltd carries on the business of a timeshare scheme. The company owns the complex known as La Lucia Sands situate at 58 Marine Drive, La Lucia, KwaZulu Natal. The company operates as a shareblock company in terms of the Share Blocks Control Act. The company operates in South Africa.

3. Review of fi nancial results and activitiesThe annual fi nancial statements have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Companies Act and the Share Blocks Control Act. The accounting policies have been applied consistently compared to the prior year.

Net levy defi cit of the company was R 253,890 (2014: defi cit R 239,498 ).

The company’s reserves at 31 December 2015 were R 1,604,228 (2014: R 1 ,858,118 ).

4. Share CapitalThere have been no changes to the authorised or issued share capital during the year under review.

5. DirectorsThe directors in o� ce at the date of this report are as follows:DN PhillipsDA MantheyBR LevyPJ Lishman Appointed 07 January 2016Dr PM Collins Resigned 09 January 2016BVH Alstone Resigned 30 January 2016RE Moraka Resigned 30 January 2016

6. Special ResolutionsNo special resolutions, the nature of which might be signifi cant to the shareholders in their appreciation of the state of a� airs of the company were made by the company during the period covered by this report.

7. Events after the reporting periodThe directors are not aware of any material event which occurred after the reporting date and up to the date of this report.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 13

8. Going concernThe directors believe that the company has adequate fi nancial resources to continue in operation for the foreseeable future and accordingly the annual fi nancial statements have been prepared on a going concern basis . The directors have satisfi ed themselves that the company is in a sound fi nancial position and that it has access to su� cient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware of any new material changes that may adversely impact the company. The directors are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation which may a� ect the company.

9. SecretaryThe company secretary is Corporate Governance CC.

Postal address Business addressPrivate Bag X4 Unit 55, 28 Galloway StreetJukskei Park Douglasdale2153 2191

10. Managing AgentThe managing agent of the company is Frontline Resort Management (Pty) Ltd

Postal address Business addressP.O. Box 11776 75 Woodford GroveMarine Parade StamfordhillDurban Durban4056 4001

Lodgement of returns to South African Revenue ServiceI hereby certify that for the year ended 31 December 2015 the company has lodged with the South African Revenue Service, all such returns as are required of a company in terms of the Income Tax Act, 1962, as amended and the Value Added Tax Act, 19~amended and that all such returns are true, correct and up to date.

___________________________________BR LevyPublic o� cer

Lodgement of returns with CIPCWe hereby certify that for the year ended 31 December 2015 the company has lodged with CIPC, all such returns as are required of a private company in terms of the Companies Act of South Africa, 2008, as amended and that all such returns are true, correct and up to date.

___________________________________CD KnealeCorporate Governance CC

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

14 AGM 2016

STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2015

Figures in Rand Notes 2015 2014

Assets

Non-Current Assets

Shareholders loan 3 270,000 270,000

Plant and equipment 4 914,291 925,372

1,184,591 1,195,372

Current Assets

Levies receivable 132,055

Inventories 5 185,395 139,427

Accounts receivable 6 542,435 532,502

Cash and cash equivalents 7 8,299,683 7,732,146

9,159,568 8,404,075

Total Assets 10,344,159 9,599,447

Equity and Liabilities

Equity

Share capital 8 270,000 270,000

Reserves 9 1,604,228 1,858,118

1,874,228 2,128,118

Liabilities

Current Liabilities

Accounts payable 10 1,727,698 1,007,406

Levies received in advance 6,680,410 6,463 ,923

Taxation 61,823

8,469,931 7,471,329

Total Equity and Liabilities 10,344,159 9,599,447

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 15

STATEMENT OF COMPREHENSIVE INCOME

Figures in Rand Notes 2015 2014

Revenue 10,656,018 10,082,977

Other income 129,364 109,823

Operating expenses (11,361 ,028) (10,664,742)

Operating defi cit (575,646) (471,942)

Investment revenue 315,956 192,108

Rental pool commissions 69,237 40,336

Finance costs (1,614) -

Defi cit before taxation (192,067) (239,498)

Taxation 13 (61,823) -

Defi cit for the year (253,890) (239,498)

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

14 AGM 2016

STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2015

Figures in Rand Notes 2015 2014

Assets

Non-Current Assets

Shareholders loan 3 270,000 270,000

Plant and equipment 4 914,291 925,372

1,184,591 1,195,372

Current Assets

Levies receivable 132,055

Inventories 5 185,395 139,427

Accounts receivable 6 542,435 532,502

Cash and cash equivalents 7 8,299,683 7,732,146

9,159,568 8,404,075

Total Assets 10,344,159 9,599,447

Equity and Liabilities

Equity

Share capital 8 270,000 270,000

Reserves 9 1,604,228 1,858,118

1,874,228 2,128,118

Liabilities

Current Liabilities

Accounts payable 10 1,727,698 1,007,406

Levies received in advance 6,680,410 6,463 ,923

Taxation 61,823

8,469,931 7,471,329

Total Equity and Liabilities 10,344,159 9,599,447

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 15

STATEMENT OF COMPREHENSIVE INCOME

Figures in Rand Notes 2015 2014

Revenue 10,656,018 10,082,977

Other income 129,364 109,823

Operating expenses (11,361 ,028) (10,664,742)

Operating defi cit (575,646) (471,942)

Investment revenue 315,956 192,108

Rental pool commissions 69,237 40,336

Finance costs (1,614) -

Defi cit before taxation (192,067) (239,498)

Taxation 13 (61,823) -

Defi cit for the year (253,890) (239,498)

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

16 AGM 2016

STATEMENT OF CHANGES IN EQUITY

Figures in Rand Share capital

Share premium

Total share capital

General reserve Total equity

Balance at 01 January 2014 1,920 268,080 270,000 2,097,616 2,367,616

Defi cit for the year - - - (239,498) (239,498)

Balance at 01 January 2015 1,920 268,080 270,000 1,858,118 2,128,118

Defi cit for the year - - - (253,890) (253,890)

Balance at 31 December 2015 1,920 268,080 270,000 1,604,228 1,874,228

Notes 8 8 8

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 17

STATEMENT OF CASH FLOWS

2015 2014

Figures in Rand Notes 2015 2014

Cash fl ows from operating activities

Cash generated from operations 11 267,023 5,781,735

Interest income 315,956 192,108

Finance costs (1,614) -

Net cash from operating activities 581,365 5,973,843

Cash fl ows from investing activities

Purchase of plant and equipment 4 (13,828) (789)

Cash fl ows from fi nancing activities

Total cash movement for the year 567,537 5,973,054

Cash at the beginning of the year 7,732,146 1,759,092

Total cash at end of the year 7 8,299,683 7,732,146

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

16 AGM 2016

STATEMENT OF CHANGES IN EQUITY

Figures in Rand Share capital

Share premium

Total share capital

General reserve Total equity

Balance at 01 January 2014 1,920 268,080 270,000 2,097,616 2,367,616

Defi cit for the year - - - (239,498) (239,498)

Balance at 01 January 2015 1,920 268,080 270,000 1,858,118 2,128,118

Defi cit for the year - - - (253,890) (253,890)

Balance at 31 December 2015 1,920 268,080 270,000 1,604,228 1,874,228

Notes 8 8 8

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 17

STATEMENT OF CASH FLOWS

2015 2014

Figures in Rand Notes 2015 2014

Cash fl ows from operating activities

Cash generated from operations 11 267,023 5,781,735

Interest income 315,956 192,108

Finance costs (1,614) -

Net cash from operating activities 581,365 5,973,843

Cash fl ows from investing activities

Purchase of plant and equipment 4 (13,828) (789)

Cash fl ows from fi nancing activities

Total cash movement for the year 567,537 5,973,054

Cash at the beginning of the year 7,732,146 1,759,092

Total cash at end of the year 7 8,299,683 7,732,146

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

18 AGM 2016

ACCOUNTING POLICIES1. Presentation of annual fi nancial statements

The annual fi nancial statements have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and the Companies Act and the Share Blocks Control Act. The annual fi nancial 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.

These accounting policies are consistent with the previous period.

1.1. Plant and equipmentPlant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses.

Cost include costs incurred initially to acquire or construct an item of plant 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 plant and equipment, the carrying amount of the replaced part is derecognised.

Depreciation is provided using the straight-line method to write down the cost, less estimated residual value over the useful life of the plant and equipment as follows:

ItemPlant and machinery 25%Furniture and fi xtures 20%Motor vehicles 20%O� ce equipment 25%Computer equipment 33.33%Security equipment 10%Linen and towels 33.33%

The residual value, depreciation method and useful life of each asset are reviewed only where there is an indication that there has been a signifi cant change from the previous estimate.

1.2. Financial instruments

Initial measurementFinancial instruments are initially measured at the transaction price. This includes transaction costs, except for fi nancial assets and liabilities that are measured at fair value through surplus or defi cit.

Financial instruments at amortised costThese include loans, trade receivables and trade payables. Those debt instruments which meet the criteria in section 11.8(b) of the standard, are subsequently measured at amortised cost using the e� ective interest method. Debt instruments which are classifi ed as current assets or current liabilities are measured at the undiscounted amount of the cash expected to be received or paid, unless the arrangement e� ectively constitutes a fi nancing transaction.

At each reporting date, the carrying amounts of assets held in this category are reviewed to determine whether there is any objective evidence of impairment. If there is objective evidence, the recoverable amount is estimated and compared with the carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in surplus or defi cit.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 19

Financial instruments at costCommitments to receive a loan are measured at cost less impairment.Equity instruments that are not publicly traded and whose fair value cannot otherwise be measured reliably are measured at cost less impairment. This includes equity instruments held in unlisted investments.

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and subject to insignifi cant risk of changes in value and are measured at cost which is deemed to be fair as they have a short-term maturity.

Bank overdrafts are included with in current liabilities in the statement of fi nancial position .All fi nancial assets whose fair value cannot otherwise be measured reliably, and which do not meet the criteria to be designated as an instruments measured at amortised cost, are measured at cost less impairment.

Financial instruments at fair valueAll other fi nancial instruments, including equity instruments that are publicly traded or whose fair value can otherwise be measured reliably, are measured at fair value through surplus and defi cit.

1.3. InventoriesInventories are measured at the lower of cost and net realisable value. Costs include identifi able transport and handling costs. Where necessary, provision is made for obsolete, slow moving and defective stock. Net realisable value is the estimated selling price in the ordinary course of business, less selling expenses.

1.4. Impairment of assetsThe company assesses at each reporting date whether there is any indication that property, plant and equipment may be impaired.

If there is any such indication, the recoverable amount of any a� ected asset (or group of related assets) is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profi t or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (or group of assets) in prior years. A reversal of impairment is recognised immediately in profi t or loss.

1.5. RevenueLevies are recorded as revenue at the due date, being 1 January and 1 July every year, in terms of the Consent of Use Agreement. As a consequence, because the year end of the company is 31 December, levy revenue reported for the year represents the total levies in respect of the right of use for each week of the fi nancial year. Payments in advance are held in trust until the due date.

Levies , net of value added tax, are recorded in the annual fi nancial statements.

Interest is recognised using the e� ective interest rate method.

1.6. Borrowing costsBorrowing costs are recognised as an expense in the period in which they are incurred.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

18 AGM 2016

ACCOUNTING POLICIES1. Presentation of annual fi nancial statements

The annual fi nancial statements have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and the Companies Act and the Share Blocks Control Act. The annual fi nancial 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.

These accounting policies are consistent with the previous period.

1.1. Plant and equipmentPlant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses.

Cost include costs incurred initially to acquire or construct an item of plant 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 plant and equipment, the carrying amount of the replaced part is derecognised.

Depreciation is provided using the straight-line method to write down the cost, less estimated residual value over the useful life of the plant and equipment as follows:

ItemPlant and machinery 25%Furniture and fi xtures 20%Motor vehicles 20%O� ce equipment 25%Computer equipment 33.33%Security equipment 10%Linen and towels 33.33%

The residual value, depreciation method and useful life of each asset are reviewed only where there is an indication that there has been a signifi cant change from the previous estimate.

1.2. Financial instruments

Initial measurementFinancial instruments are initially measured at the transaction price. This includes transaction costs, except for fi nancial assets and liabilities that are measured at fair value through surplus or defi cit.

Financial instruments at amortised costThese include loans, trade receivables and trade payables. Those debt instruments which meet the criteria in section 11.8(b) of the standard, are subsequently measured at amortised cost using the e� ective interest method. Debt instruments which are classifi ed as current assets or current liabilities are measured at the undiscounted amount of the cash expected to be received or paid, unless the arrangement e� ectively constitutes a fi nancing transaction.

At each reporting date, the carrying amounts of assets held in this category are reviewed to determine whether there is any objective evidence of impairment. If there is objective evidence, the recoverable amount is estimated and compared with the carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in surplus or defi cit.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 19

Financial instruments at costCommitments to receive a loan are measured at cost less impairment.Equity instruments that are not publicly traded and whose fair value cannot otherwise be measured reliably are measured at cost less impairment. This includes equity instruments held in unlisted investments.

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and subject to insignifi cant risk of changes in value and are measured at cost which is deemed to be fair as they have a short-term maturity.

Bank overdrafts are included with in current liabilities in the statement of fi nancial position .All fi nancial assets whose fair value cannot otherwise be measured reliably, and which do not meet the criteria to be designated as an instruments measured at amortised cost, are measured at cost less impairment.

Financial instruments at fair valueAll other fi nancial instruments, including equity instruments that are publicly traded or whose fair value can otherwise be measured reliably, are measured at fair value through surplus and defi cit.

1.3. InventoriesInventories are measured at the lower of cost and net realisable value. Costs include identifi able transport and handling costs. Where necessary, provision is made for obsolete, slow moving and defective stock. Net realisable value is the estimated selling price in the ordinary course of business, less selling expenses.

1.4. Impairment of assetsThe company assesses at each reporting date whether there is any indication that property, plant and equipment may be impaired.

If there is any such indication, the recoverable amount of any a� ected asset (or group of related assets) is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profi t or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (or group of assets) in prior years. A reversal of impairment is recognised immediately in profi t or loss.

1.5. RevenueLevies are recorded as revenue at the due date, being 1 January and 1 July every year, in terms of the Consent of Use Agreement. As a consequence, because the year end of the company is 31 December, levy revenue reported for the year represents the total levies in respect of the right of use for each week of the fi nancial year. Payments in advance are held in trust until the due date.

Levies , net of value added tax, are recorded in the annual fi nancial statements.

Interest is recognised using the e� ective interest rate method.

1.6. Borrowing costsBorrowing costs are recognised as an expense in the period in which they are incurred.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

20 AGM 2016

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2015 2014

2. Going concernThe annual fi nancial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presume s that funds will be available to fi nance 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. Shareholders loanDetails of propertiesBuildings on freehold land, being ERF 1881 La Lucia extension 13, situated at 58 Marine Drive, La Lucia.

Right of use of property vested in shareholders 56,745,000 56,745,000

Loans from shareholders (56,475,000) (56,475,000)

270,000 270,000

The loans from shareholders together with the share capital represent the shareholders’ investment in the company, which investment in conjunction with a use agreement, gives the right to accommodation in the building. The right of use vested in the shareholders has been o� set against the loans from shareholders. The net fi nancial asset arises from the assignment of the right of use of the property owned by the company to the shareholders in excess of their loans.

Land and buildings were originally purchased for R 270,000 and are not recognised because although the company has legal title to the property it e� ectively only owns the bare dominium over the property which is considered to be of no value. There are no bonds on the property.

4. Plant and equipment

2015 2014

Cost/valuation

Accumulated depreciation Carrying value Cost/

valuationAccumulated depreciation Carrying value

Plant and machinery 105,644 (99,012) 6,632 100,175 (96,506) 3,669

Furniture and fi xtures 905,110 (3,699) 901,411 905,110 (2,877) 902,233

Motor vehicles 155,109 (155,108) 1 155,109 (155,108) 1

O� ce equipment 61,940 (61,476) 464 61,434 (61,424) 10

Computer equipment 113,995 (107,947) 6,048 106,144 (104,180) 1,964

Security equipment 105,707 (105,701) 6 105,707 (105,701) 6

Linen and towels 229,232 (229,203) 29 229,232 (211,743) 17,489

Total 1,676,737 (762,146) 914,591 1,662,911 (737,539) 925,372

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 21

NOTES TO THE ANNUAL FINANCIAL STATEMENTS(contd.)

Reconciliation of plant and equipment - 2015Opening balance Additions Depreciation Total

Plant and machinery 3,669 5,471 (2,508) 6,632

Furniture and fi xtures 902,233 - (822) 901,411

Motor vehicles 1 - - 1

O� ce equipment 10 507 (53) 464

Computer equipment 1,964 7,850 (3,766) 6,048

Security equipment 6 - - 6

Linen and towels 17,489 - (17,460) 29

925,372 13,828 (24,609) 914,591Reconciliation of plant and equipment - 2014

Opening balance Additions Depreciation Total

Plant and machinery 6,129 - (2,460) 3,669

Furniture and fi xtures 903,055 - (822) 902,233

Motor vehicles 1 - - 1,

O� ce equipment 1,103 - (1,093) 10

Computer equipment 8,750 789 (7,575) 1,964

Security equipment 6 - - 6,

Linen and towels 51,870 - (34,381) 17,489

970,914 789 (46,331) 925,372

Figures in Rand 2015 2014

5. InventoriesConsumables inventory 147,713 107,843

Apartment inventory 37,682 31,584

185,395 139,427

6. Accounts receivableTrade receivables 12,721 30,649

Other receivables 199,843 171,609

Prepayments 15,147 29,375

Deposits 47,265 47,265

VAT 267,459 253,604

542,435 532,502

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

20 AGM 2016

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2015 2014

2. Going concernThe annual fi nancial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presume s that funds will be available to fi nance 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. Shareholders loanDetails of propertiesBuildings on freehold land, being ERF 1881 La Lucia extension 13, situated at 58 Marine Drive, La Lucia.

Right of use of property vested in shareholders 56,745,000 56,745,000

Loans from shareholders (56,475,000) (56,475,000)

270,000 270,000

The loans from shareholders together with the share capital represent the shareholders’ investment in the company, which investment in conjunction with a use agreement, gives the right to accommodation in the building. The right of use vested in the shareholders has been o� set against the loans from shareholders. The net fi nancial asset arises from the assignment of the right of use of the property owned by the company to the shareholders in excess of their loans.

Land and buildings were originally purchased for R 270,000 and are not recognised because although the company has legal title to the property it e� ectively only owns the bare dominium over the property which is considered to be of no value. There are no bonds on the property.

4. Plant and equipment

2015 2014

Cost/valuation

Accumulated depreciation Carrying value Cost/

valuationAccumulated depreciation Carrying value

Plant and machinery 105,644 (99,012) 6,632 100,175 (96,506) 3,669

Furniture and fi xtures 905,110 (3,699) 901,411 905,110 (2,877) 902,233

Motor vehicles 155,109 (155,108) 1 155,109 (155,108) 1

O� ce equipment 61,940 (61,476) 464 61,434 (61,424) 10

Computer equipment 113,995 (107,947) 6,048 106,144 (104,180) 1,964

Security equipment 105,707 (105,701) 6 105,707 (105,701) 6

Linen and towels 229,232 (229,203) 29 229,232 (211,743) 17,489

Total 1,676,737 (762,146) 914,591 1,662,911 (737,539) 925,372

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 21

NOTES TO THE ANNUAL FINANCIAL STATEMENTS(contd.)

Reconciliation of plant and equipment - 2015Opening balance Additions Depreciation Total

Plant and machinery 3,669 5,471 (2,508) 6,632

Furniture and fi xtures 902,233 - (822) 901,411

Motor vehicles 1 - - 1

O� ce equipment 10 507 (53) 464

Computer equipment 1,964 7,850 (3,766) 6,048

Security equipment 6 - - 6

Linen and towels 17,489 - (17,460) 29

925,372 13,828 (24,609) 914,591Reconciliation of plant and equipment - 2014

Opening balance Additions Depreciation Total

Plant and machinery 6,129 - (2,460) 3,669

Furniture and fi xtures 903,055 - (822) 902,233

Motor vehicles 1 - - 1,

O� ce equipment 1,103 - (1,093) 10

Computer equipment 8,750 789 (7,575) 1,964

Security equipment 6 - - 6,

Linen and towels 51,870 - (34,381) 17,489

970,914 789 (46,331) 925,372

Figures in Rand 2015 2014

5. InventoriesConsumables inventory 147,713 107,843

Apartment inventory 37,682 31,584

185,395 139,427

6. Accounts receivableTrade receivables 12,721 30,649

Other receivables 199,843 171,609

Prepayments 15,147 29,375

Deposits 47,265 47,265

VAT 267,459 253,604

542,435 532,502

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

22 AGM 2016

NOTES TO THE ANNUAL FINANCIAL STATEMENTS(contd.)

Figures in Rand 2015 2014

7. Cash and cash equivalentsCash and cash equivalents consist of:

Cash on hand 3,405 4,603

Bank balances 8,296,278 7,727,543

8,299,683 7,732,146Favourable bank balances of the company earn interest at market rates while interest is incurred on bank overdrafts at the prime overdraft rate. Bank deposits are held with established and substantial banks.

General cessions: R 75 000 from ABSA Bank account 906236202029 has been ceded to Ethekwini Municipality.

8. Share capitalAuthorised and issuedOrdinary 1,920 1,920

Share premium 268,080 268,080

270,000 270,000

9. ReservesGeneral reserves comprising:Special capital expenditure 904,233 1,158,118

Replacement reserve 700,000 700,000

1,604,233 1,858, 118

10. Accounts payableTrade payables 366,560 1,013,538

Other payables 2,151,792 616,777

Deposits held 2,792 3,863

Sundry payables (793,446) (626,772)

1,727,698 1,007,406

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 23

NOTES TO THE ANNUAL FINANCIAL STATEMENTS(contd.)

Figures in Rand 2015 2014

11 . Cash generated from operationsDefi cit before taxation (192,067) (239,498)

Adjustments for:Depreciation and amortisation 24,609 46,331

Interest received (315,956) (192,108)

Finance costs 1,614 -

Changes in working capital:Inventories (45,968) 8,902

Accounts receivable (141,993) 105,358

Accounts payable 720,297 726,712

Levies received in advance 216,487 5,326,038

267,023 5,781,735

12. Directors’ RemunerationEmoluments as directorsDN Philips 21,200 5,400

BR Levy 16,000 7,200

DA Manthany 17,200 1,800

BVH Alstone 8,000 9,000

RE Moraka - 1,800

62,400 25,200

13. TaxationCurrentLocal income tax- current period 61,823 -

Taxation has been provided for on taxable income in excess of R50,000 in terms of Section 10 (1) (e) of the Income Tax Act.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

22 AGM 2016

NOTES TO THE ANNUAL FINANCIAL STATEMENTS(contd.)

Figures in Rand 2015 2014

7. Cash and cash equivalentsCash and cash equivalents consist of:

Cash on hand 3,405 4,603

Bank balances 8,296,278 7,727,543

8,299,683 7,732,146Favourable bank balances of the company earn interest at market rates while interest is incurred on bank overdrafts at the prime overdraft rate. Bank deposits are held with established and substantial banks.

General cessions: R 75 000 from ABSA Bank account 906236202029 has been ceded to Ethekwini Municipality.

8. Share capitalAuthorised and issuedOrdinary 1,920 1,920

Share premium 268,080 268,080

270,000 270,000

9. ReservesGeneral reserves comprising:Special capital expenditure 904,233 1,158,118

Replacement reserve 700,000 700,000

1,604,233 1,858, 118

10. Accounts payableTrade payables 366,560 1,013,538

Other payables 2,151,792 616,777

Deposits held 2,792 3,863

Sundry payables (793,446) (626,772)

1,727,698 1,007,406

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 23

NOTES TO THE ANNUAL FINANCIAL STATEMENTS(contd.)

Figures in Rand 2015 2014

11 . Cash generated from operationsDefi cit before taxation (192,067) (239,498)

Adjustments for:Depreciation and amortisation 24,609 46,331

Interest received (315,956) (192,108)

Finance costs 1,614 -

Changes in working capital:Inventories (45,968) 8,902

Accounts receivable (141,993) 105,358

Accounts payable 720,297 726,712

Levies received in advance 216,487 5,326,038

267,023 5,781,735

12. Directors’ RemunerationEmoluments as directorsDN Philips 21,200 5,400

BR Levy 16,000 7,200

DA Manthany 17,200 1,800

BVH Alstone 8,000 9,000

RE Moraka - 1,800

62,400 25,200

13. TaxationCurrentLocal income tax- current period 61,823 -

Taxation has been provided for on taxable income in excess of R50,000 in terms of Section 10 (1) (e) of the Income Tax Act.

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

24 AGM 2016

NOTES TO THE ANNUAL FINANCIAL STATEMENTS(contd.)

Figures in Rand 2015 2014

14. Related partiesDA Manthey Director of Stardust Projects 137 NPC

D Phillips Director of Stardust Projects 137 NPC

BR Levy

Employee of de Chalain and Associates CC who performs accounting work on behalf of La Lucia Sands Shareblock (Pty) Ltd, Director of Stardust Projects 137 NPC

Related party transactionsAccounting fees paid to related partiesde Chalain and Associates CC 191,340 216,040

Management fees paid to related partiesStardust Projects 137 NPC 1,325,239 1,241,726

15. ContingenciesLitigation is in process against the company relating to a dispute with Flexi Club, which alleges that the company is liable for damages caused by the cancellation of the Use Agreement by the company and they are seeking damages of R 499 365. Due to Flexi Club being a defaulting debtor, the company sold the timeshare units to recoup outstanding levies due and payable to it. In the past the company has challenged the legal standing of Flexi Club. The Supreme Court of Appeal found that Flexi Club had standing to continue their damages claim. The company’s legal advisors have estimated approximately R 200 000 to defend the damages claim.

16. Comparative fi guresCertain comparative fi gures have been reclassifi ed.

The e� ects of the reclassifi cation are as follows:

Statement of Financial PositionProperty, plant and equipment (56,475,000) (56,475,000)

Reserves 56,475,000 56,475,000

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 25

DETAILED INCOME STATEMENT

Figures in Rand Notes 2015 2014RevenueLevies receivable 10,537,556 10,050,546

Discounts received 655 655

Rental income - Apartment 5 110,976 24,178

Sundry income 6,831 7,598

10,656,018 10,082,977Other incomeRecoveries received 129,364 109,823

Interest received 315,956 192,108

Rental pool recoveries 69,237 40,336

514,557 342,267Expenses (Refer to page 19) (11,361,028) (10,664,742)Operating defi cit (190,453) (239,498)Finance costs (1,614) -

Defi cit before taxation (192,067) (239,498)Taxation 13 (61,823) -

Defi cit for the year (253,890) (239,498)

The supplementary information presented does not form part of the annual fi nancial statements and is unaudited

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

24 AGM 2016

NOTES TO THE ANNUAL FINANCIAL STATEMENTS(contd.)

Figures in Rand 2015 2014

14. Related partiesDA Manthey Director of Stardust Projects 137 NPC

D Phillips Director of Stardust Projects 137 NPC

BR Levy

Employee of de Chalain and Associates CC who performs accounting work on behalf of La Lucia Sands Shareblock (Pty) Ltd, Director of Stardust Projects 137 NPC

Related party transactionsAccounting fees paid to related partiesde Chalain and Associates CC 191,340 216,040

Management fees paid to related partiesStardust Projects 137 NPC 1,325,239 1,241,726

15. ContingenciesLitigation is in process against the company relating to a dispute with Flexi Club, which alleges that the company is liable for damages caused by the cancellation of the Use Agreement by the company and they are seeking damages of R 499 365. Due to Flexi Club being a defaulting debtor, the company sold the timeshare units to recoup outstanding levies due and payable to it. In the past the company has challenged the legal standing of Flexi Club. The Supreme Court of Appeal found that Flexi Club had standing to continue their damages claim. The company’s legal advisors have estimated approximately R 200 000 to defend the damages claim.

16. Comparative fi guresCertain comparative fi gures have been reclassifi ed.

The e� ects of the reclassifi cation are as follows:

Statement of Financial PositionProperty, plant and equipment (56,475,000) (56,475,000)

Reserves 56,475,000 56,475,000

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

AGM 2016 25

DETAILED INCOME STATEMENT

Figures in Rand Notes 2015 2014RevenueLevies receivable 10,537,556 10,050,546

Discounts received 655 655

Rental income - Apartment 5 110,976 24,178

Sundry income 6,831 7,598

10,656,018 10,082,977Other incomeRecoveries received 129,364 109,823

Interest received 315,956 192,108

Rental pool recoveries 69,237 40,336

514,557 342,267Expenses (Refer to page 19) (11,361,028) (10,664,742)Operating defi cit (190,453) (239,498)Finance costs (1,614) -

Defi cit before taxation (192,067) (239,498)Taxation 13 (61,823) -

Defi cit for the year (253,890) (239,498)

The supplementary information presented does not form part of the annual fi nancial statements and is unaudited

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

26 AGM 2016

DETAILED INCOME STATEMENT

Figures in Rand Notes 2015 2014Operating expensesAccounting fees 330,534 344,818Administration and management fees 1,325,239 1,241,726Advertising 41,007 35,141Assessment rates 1,643,419 1,625,968Auditors remuneration 144,653 146,880Bank charges 126,748 151,002Cleaning 83,777 70,891Computer expenses 32,823 43,710Consulting and professional fees - 27,000Depreciation 24,609 46,331Directors’ emoluments 62,400 25,200Employee costs 961,019 994,154Entertainment 3,410 3,156Hire of equipment 427,551 436,783Insurance 100,025 82,683Interest paid 4,126 -Legal expenses 1,768,595 1,121,011Kitchen replacements 37,753 17,942Motor vehicle expenses 23,781 7,567Municipal expenses 453,340 435,421Pest control 51,275 49,494Petrol and oil 6,243 5,634Postage 9,381 8,212Printing and stationery 29,267 22,495Repairs and maintenance 370,286 281,109Replacements 160,859 183,400Secretarial fees 119,655 164,319Security 18,613 31,777Sta� welfare 25,842 3,440Stock losses 1,860 1,448Subcontractors 2,547,246 2,703,821Subscriptions 28,504 19,802Telephone 123,674 110,085Training 2,273 2,671Travel 261,787 211,269TV licences 9,454 8,382

11,361,028 10,664,742

The supplementary information presented does not form part of the annual fi nancial statements and is unaudited

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Insurance Schedule

AGM 2016 27

SCHEDULE: PREMIUM ANALYSISPolicy Number: 235/62808811998/2/M Revision Number: 80

Section Description Item number Monthly Amount (R)

Sum Insured (R)

Monthly Amount (R)

Buildings combined001 Holiday Resort - Buildings and Facili 1,107.37 68,661,450 3,184.18

002 Holiday Resort - Buildings and Facili 265.05 18,406,025 805.27

003 Holiday Resort - Buildings and Facili 271.16 18,830,571 823.83

004 Holiday Resort - Buildings and Facili 0.61 121,000 104.78

Additional claims preparation cost 0.14 10,000 4.16

1,644.33 106,029,046 4,922.22

O� ce contents001 Holiday Resort - Buildings and Facili 1.37 94,938 42.96

Additional claims preparation cost 0.01 1,000 0.00

1.38 95,938 42.96

Money001 Holiday Resort - Buildings and Facili 0.24 5,000 27.50

Receptacles 2,000

Additional claims preparation cost 0.01 10,000 0.00

0.25 17,000 27.50

Fidelity001 O� ce 40,000 218.48

Additional claims preparation cost 10,000 0.00

50,000 218.48

Business all risks006 Electronic equipment (computers,lapto 0.19 13,150 84.38

007 Electronic equipment (computers,lapto 0.19 13,150 84.38

008 Electronic equipment (computers,lapto 0.46 32,000 205.33

009 Electronic equipment (computers,lapto 0.14 10,000 64.17

010 Electronic equipment (computers,lapto 0.72 49,972 249.86

Additional claims preparation cost 0.14 10,000 0.00

1.84 128,272 688.12

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Annual Financial Statements for the year ended 31 December 2015

26 AGM 2016

DETAILED INCOME STATEMENT

Figures in Rand Notes 2015 2014Operating expensesAccounting fees 330,534 344,818Administration and management fees 1,325,239 1,241,726Advertising 41,007 35,141Assessment rates 1,643,419 1,625,968Auditors remuneration 144,653 146,880Bank charges 126,748 151,002Cleaning 83,777 70,891Computer expenses 32,823 43,710Consulting and professional fees - 27,000Depreciation 24,609 46,331Directors’ emoluments 62,400 25,200Employee costs 961,019 994,154Entertainment 3,410 3,156Hire of equipment 427,551 436,783Insurance 100,025 82,683Interest paid 4,126 -Legal expenses 1,768,595 1,121,011Kitchen replacements 37,753 17,942Motor vehicle expenses 23,781 7,567Municipal expenses 453,340 435,421Pest control 51,275 49,494Petrol and oil 6,243 5,634Postage 9,381 8,212Printing and stationery 29,267 22,495Repairs and maintenance 370,286 281,109Replacements 160,859 183,400Secretarial fees 119,655 164,319Security 18,613 31,777Sta� welfare 25,842 3,440Stock losses 1,860 1,448Subcontractors 2,547,246 2,703,821Subscriptions 28,504 19,802Telephone 123,674 110,085Training 2,273 2,671Travel 261,787 211,269TV licences 9,454 8,382

11,361,028 10,664,742

The supplementary information presented does not form part of the annual fi nancial statements and is unaudited

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Insurance Schedule

AGM 2016 27

SCHEDULE: PREMIUM ANALYSISPolicy Number: 235/62808811998/2/M Revision Number: 80

Section Description Item number Monthly Amount (R)

Sum Insured (R)

Monthly Amount (R)

Buildings combined001 Holiday Resort - Buildings and Facili 1,107.37 68,661,450 3,184.18

002 Holiday Resort - Buildings and Facili 265.05 18,406,025 805.27

003 Holiday Resort - Buildings and Facili 271.16 18,830,571 823.83

004 Holiday Resort - Buildings and Facili 0.61 121,000 104.78

Additional claims preparation cost 0.14 10,000 4.16

1,644.33 106,029,046 4,922.22

O� ce contents001 Holiday Resort - Buildings and Facili 1.37 94,938 42.96

Additional claims preparation cost 0.01 1,000 0.00

1.38 95,938 42.96

Money001 Holiday Resort - Buildings and Facili 0.24 5,000 27.50

Receptacles 2,000

Additional claims preparation cost 0.01 10,000 0.00

0.25 17,000 27.50

Fidelity001 O� ce 40,000 218.48

Additional claims preparation cost 10,000 0.00

50,000 218.48

Business all risks006 Electronic equipment (computers,lapto 0.19 13,150 84.38

007 Electronic equipment (computers,lapto 0.19 13,150 84.38

008 Electronic equipment (computers,lapto 0.46 32,000 205.33

009 Electronic equipment (computers,lapto 0.14 10,000 64.17

010 Electronic equipment (computers,lapto 0.72 49,972 249.86

Additional claims preparation cost 0.14 10,000 0.00

1.84 128,272 688.12

LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Insurance Schedule

28 AGM 2016

Section Description Item number Monthly Amount (R)

Sum Insured (R)

Monthly Amount (R)

Accidental damage001 Holiday Resort - Buildings and Facili 20,000 50.00

Additional claims preparation cost 1,000 0.00

21,000 50.00

Group personal accident004 Director 100,000 31.15

012 Director 100,000 31.15

013 Director 100,000 31.15

014 Director 100,000 31.15

015 Director 100,000 31.14

Additional claims preparation cost 10,000 0.00

510,000 155.74

Motor2 TOYOTA REQUESTED 2.00 64,790 460.13

Contingent liability 2,500,000 0.00

Parking facilities 2,500,000 0.00

2.00 5,064,790 460.13

Electronic equipment001 Other PC’s or electronic equipm in ad 0.63 44,000 123.20

004 Reinstatement of data(Item 1) 0.07 5,000 5.00

005 Increased cost of working(Item 1) 5,000 5.00

009 Photocopier 1.00 6,9661 194.28

010 Facsimile equipment 0.10 6,834 19.06

012 Other PC’s or electronic equipm in ad 0.12 8,550 23.85

013 Other PC’s or electronic equipm in ad 0.13 9,332 26.13

014 Other PC’s or electronic equipm in ad 0.12 8,276 23.17

Additional claims preparation cost 0.01 1,000 0.00

2.18 157,653 419.69

Umbrella liability001 Umbrella liability 20,000,000 75.00

20,000,000 75.00

Sasria minimum premium requirement 4.75

Total for the Policy 1,656.73 133,073,699 7,118.17

AGM 2016 29

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LA LUCIA SANDS SHAREBLOCK (PTY) LTDRegistration No: 1974/001166/07Insurance Schedule

28 AGM 2016

Section Description Item number Monthly Amount (R)

Sum Insured (R)

Monthly Amount (R)

Accidental damage001 Holiday Resort - Buildings and Facili 20,000 50.00

Additional claims preparation cost 1,000 0.00

21,000 50.00

Group personal accident004 Director 100,000 31.15

012 Director 100,000 31.15

013 Director 100,000 31.15

014 Director 100,000 31.15

015 Director 100,000 31.14

Additional claims preparation cost 10,000 0.00

510,000 155.74

Motor2 TOYOTA REQUESTED 2.00 64,790 460.13

Contingent liability 2,500,000 0.00

Parking facilities 2,500,000 0.00

2.00 5,064,790 460.13

Electronic equipment001 Other PC’s or electronic equipm in ad 0.63 44,000 123.20

004 Reinstatement of data(Item 1) 0.07 5,000 5.00

005 Increased cost of working(Item 1) 5,000 5.00

009 Photocopier 1.00 6,9661 194.28

010 Facsimile equipment 0.10 6,834 19.06

012 Other PC’s or electronic equipm in ad 0.12 8,550 23.85

013 Other PC’s or electronic equipm in ad 0.13 9,332 26.13

014 Other PC’s or electronic equipm in ad 0.12 8,276 23.17

Additional claims preparation cost 0.01 1,000 0.00

2.18 157,653 419.69

Umbrella liability001 Umbrella liability 20,000,000 75.00

20,000,000 75.00

Sasria minimum premium requirement 4.75

Total for the Policy 1,656.73 133,073,699 7,118.17

AGM 2016 29

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30 AGM 2016

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AGM 2016 31

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AGM 2016 31

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32 AGM 2016

RSVPPlease complete and forward the information below to La Lucia Sands Shareblock (Pty) Ltd on or before 9th December 2016 in order for the Management Company to make the necessary arrangements.

Kind Regards,

Name: ________________________________________________________

Account Number: ________________________________________________________

I will be attending:

YES

NO

Number of people: _____

Fax: 031 572 2736Email: accountant@laluciasands.com

Riverside Hotel, 10 Kenneth Kaunda Road, Durban North, Durbanwww.laluciasands.com

DESIGNED BY GARTONE PRESS • 011 440 6126

AGM 2016LA LUCIA SANDS SHAREBLOCK (PTY) LTD14th December 2016 - 11h00Riverside Hotel, 10 Kenneth Kaunda Road, Durban North, Durban