annual financial statements for the year ended 29 … sme financials - saslaw pro bono npc...annual...

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SASLAW PRO BONO PROJECT NPC (Registration Number 2013/192122/08)

Annual Financial Statementsfor the year ended 29 February 2016

Reviewed Financial Statementsin compliance with Companies Act 71 of 2008

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SASLAW PRO BONO PROJECT NPC (Registration Number 2013/192122/08)Annual Financial Statements for the year ended 29 February 2016

Index

The reports and statements set out below comprise the annual financial statements presented to the shareholder:

General Information 2

Independent Reviewer’s Report 3 - 4

The Chartered Accountant (South Africa) Declaration 5

Directors' Responsibilities and Approval 6

Directors' Report 7

Statement of Financial Position 8

Statement of Comprehensive Income 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Accounting Policies 12

Notes to the Annual Financial Statements 13

Supplementary information:

Detailed Income Statement 14

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General Information

Country Of Incorporation And Domicile South Africa

Nature Of Business And Principal Activities Provision of Pro Bono legal services

Directors S GaibieN J A RobbR T Maddern D L Fram-arpE Abrahams (Appointed 19 August 2016)

Registered Office 17 Vosloo Street Windsor GlenJohannesburgGauteng2194

Bankers First National Bank

Chartered Accountant CA(SA) Montaque Brian SwanepoelPetra Place1018 Fredenharry RoadLittle FallsJohannesburg1724

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1. Independent Reviewer's Report

To the Shareholder of SASLAW Pro Bono Project NPC We have reviewed the annual financial statements of SASLAW Pro Bono Project NPC set out on pages 8 to 13 thatcomprise the statement of financial position as at 29 February 2016, the statement of comprehensive income,the statement of changes in equity and the statement of cash flows for the year then ended, and the notes,comprising a summary of significant accounting policies and other explanatory information.

Directors' Responsibility for the Financial StatementsThe company’s directors are responsible for the preparation and fair presentation of these financial statementsin accordance with the International Financial Reporting Standards for Small and Medium-sized Entities and inthe manner required by the Companies Act of South Africa, and for such internal control as the directorsdetermine is necessary to enable the preparation of the annual financial statements that are free from materialmisstatement, whether due to fraud or error.

Independent Reviewer's ResponsibilityOur responsibility is to express a conclusion on the annual financial statements based on our review. Weconducted our review in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised),Engagements to Review Historical Financial Statements. ISRE 2400 (Revised) requires us to conclude whetheranything has come to our attention that causes us to believe that the annual financial statements, taken as awhole, are not prepared in all material respects in accordance with the applicable financial reportingframework. This Standard also requires us to comply with relevant ethical requirements.

A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. Theindependent reviewer performs procedures, primarily consisting of making inquiries of management and otherswithin the entity, as appropriate, and applying analytical procedures, and evaluates the evidence obtained.

The procedures performed in a review engagement are substantially less than those performed in an auditconducted in accordance with International Standards on Auditing. Accordingly, we do not express an auditopinion on these annual financial statements.

2. ConclusionBased on our review, nothing has come to our attention that causes us to believe that the annual financialstatements of SASLAW Pro Bono Project NPC are not prepared, in all material respects, in accordance withInternational Financial Reporting Standards for Small and Medium-sized Entities issued by the InternationalAccounting Standards Board and the requirements of the Companies Act of South Africa.

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3. Emphasis of MatterWhile not qualifying review opinion, we wish to draw your attention to the fact that the prior year figures weremerely compiled and not reviewed or audited.

____________________________ Petra PlacePer: Montaque Brian Swanepoel 1018 Fredenharry RoadChartered Accountant (SA) Little FallsRegistered Auditor 1724

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The Chartered Accountant (South Africa) Declaration

The following annual financial statements presented on pages 8 to 13 of SASLAW Pro Bono Project NPC have beenindependently reviewed by a Chartered Accountant (South Africa)[CA(SA)]. Refer to the independent reviewers reporton page 3 - 4.

Use of the CA(SA) designation is governed by the Chartered Accountants Designation Act, 1993 (Act 67 of 1993), whichregulates and permits the use of the CA(SA) designation exclusively by members of The South African Institute ofChartered Accountants (SAICA) . Use of the designation without SAICA membership is consequently a criminaloffence, and misuse is subject to legal action.

SAICA is the premier accountancy body in South Africa and one of the leading chartered institutes in the world andall members must comply with the Code of Professional Conduct which conforms to the code released by theInternational Ethics Standards Board for Accountants (IESBA). The SAICA code and definitions contained therein areconsistent in all material aspects with the International Federation of Accountants' (IFAC) code as well as theIndependent Regulatory Board for Auditors (IRBA) code.

The fundamental principles are embodied in the Code of Professional Conduct and are to be upheld by all CAs(SA) atall times.

• Integrity - a duty to be straightforward and honest in all professional and businessrelationships.

• Objectivity - a duty to not allow bias, conflict of interest or undue influence of others tooverride professional or business judgements.

• Professional Competence and Due Care -a duty to maintain professional knowledge and skillat the level required to ensure that a client receives competent professional services based oncurrent developments in practice, legislation and techniques and act diligently and inaccordance with applicable technical and professional standards.

• Confidentiality - a duty to respect the confidentiality of information acquired as a result of professional and business relationships and, therefore, not disclose any such information tothird parties without proper and specific authority, unless there is a legal or professionalright or duty to disclose, nor use the information for the personal advantage of the charteredaccountant or third parties.

• Professional Behaviour - a duty to comply with relevant laws and regulations and avoid anyaction that discredits the accountancy profession.

A distinguishing characteristic of Chartered Accountants (South Africa) is their responsibility and duty whichextends beyond the needs to individual clients but also includes the public as a whole.

Accordingly, this declaration serves to confirm that the above mentioned financial statements have been prepared bya Chartered Accountant (South Africa) who has observed and complied with the SAICA Code.

____________________________ Petra PlacePartner 1018 Fredenharry RoadCA(SA) Little FallsJohannesburg 1724

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Directors' Responsibilities and Approval

The directors are required by the South African Companies Act to maintain adequate accounting records and areresponsible for the content and integrity of the annual financial statements and related financial informationincluded in this report. It is their responsibility to ensure that the annual financial statements satisfy thefinancial reporting standards as to form and content and present fairly the statement of financial position,results of operations and business of the company, and explain the transactions and financial position of thebusiness of the company at the end of the financial year. The annual financial statements are based uponappropriate accounting policies consistently applied throughout the company and supported by reasonable andprudent judgements and estimates.

The directors acknowledge that they are ultimately responsible for the system of internal financial controlestablished by the company and place considerable importance on maintaining a strong control environment.To enable the directors to meet these responsibilities, the board sets standards for internal control aimed atreducing the risk of error or loss in a cost effective manner. The standards include the proper delegation ofresponsibilities within a clearly defined framework, effective accounting procedures and adequate segregationof duties to ensure an acceptable level of risk. These controls are monitored throughout the company and allemployees are required to maintain the highest ethical standards in ensuring the company's business isconducted 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 knownforms of risk across the company. While operating risk cannot be fully eliminated, the company endeavours tominimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied andmanaged within predetermined procedures and constraints.

The directors are of the opinion, based on the information and explanations given by management that thesystem of internal control provides reasonable assurance that the financial records may be relied on for thepreparation of the annual financial statements. However, any system of internal financial control can provideonly reasonable, and not absolute, assurance against material misstatement or loss. The going-concern basishas been adopted in preparing the financial statements. Based on forecasts and available cash resources thedirectors have no reason to believe that the company will not be a going concern in the foreseeable future. Thefinancial statements support the viability of the company.

The independent reviewers are responsible for independently reviewing and reporting on the company's annualfinancial statements. The independent reviewer's report is presented on page 3 to 4.

1. The annual financial statements as set out on pages 8 to 13 were approved by the board on 11 November 2016and were signed on their behalf by:

___________________________ ___________________________ S Gaibie N J A Robb

___________________________ ___________________________ R T Maddern D L Fram-arp

___________________________ E Abrahams

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Directors' Report

The directors present their report for the year ended 29 February 2016.

1. Review of activities

Main business and operationsThe principal activity of the company is provision of pro bono legal services and there were no major changesherein during the year.

The operating results and statement of financial position of the company are fully set out in the attachedfinancial statements and do not in our opinion require any further comment.

2. Going concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a goingconcern. This basis presumes that funds will be available to finance future operations and that the realisationof assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary courseof business.

3. Events after reporting date

All events subsequent to the date of the annual financial statements and for which the applicable financialreporting framework require adjustment or disclosure have been adjusted or disclosed.

The directors are not aware of any matter or circumstance arising since the end of the financial year to the dateof this report that could have a material effect of the financial position of the company.

4. Borrowing limitations

In terms of the Memorandum of Incorporation of the company, the directors may exercise all the powers of thecompany to borrow money, as they consider appropriate.

5. Directors

The directors of the company during the year and to the date of this report are as follows:

S GaibieN J A RobbR T Maddern D L Fram-arpE Abrahams (Appointed 19 August 2016)

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SASLAW PRO BONO PROJECT NPC (Registration Number 2013/192122/08)Annual Financial Statements as at 29 February 2016

Statement of Financial PositionFigures in R Note(s) 2016 2015

1.AssetsCurrent AssetsLoans receivable 3 30,000 - Trade and other receivables 4 750 - Cash and cash equivalents 5 6,883 24,200

37,633 24,200

Total Assets 37,633 24,200

2. Equity and LiabilitiesEquityRetained earnings 33,970 20,485

Current LiabilitiesTrade and other payables 6 3,663 3,715

Total Equity and Liabilities 37,633 24,200

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Statement of Comprehensive IncomeFigures in R Note(s) 2016 2015

Revenue 7 244,965 303,184Operating costs (231,480) (282,699)Operating Surplus 13,485 20,485

Surplus for the Year 13,485 20,485

Retained income at 1 March 2015 20,485 - Profit for the year 13,485 20,485Retained income at 29 February 2016 33,970 20,485

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Statement of Changes in Equity

Figures in RRetainedearnings Total

Balance at 1 March 2014 - - Total comprehensive income for the yearProfit for the year 20,485 20,485Total comprehensive income for the year 20,485 20,485

Balance at 28 February 2015 20,485 20,485

Balance at 1 March 2015 20,485 20,485Total comprehensive income for the yearProfit for the year 13,485 13,485Total comprehensive income for the year 13,485 13,485

Balance at 29 February 2016 33,970 33,970

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Statement of Cash FlowsFigures in R Note(s) 2016 2015

Cash flows from operating activities Profit for the year 13,485 20,485Operating cash flow before working capital changes 13,485 20,485Working capital changesIncrease in trade and other receivables (750)Increase in short-term loans (30,000) - (Decrease)/Increase in trade and other payables (52) 3,715Cash (utilised in)/generated by operating activities (17,317) 24,200Net cash from operating activities (17,317) 24,200(Decrease)/increase in cash and cash equivalents (17,317) 24,200Cash and cash equivalents at beginning of the year 24,200 - Cash and cash equivalents at end of the year 5 6,883 24,200

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Accounting Policies

1. General information

SASLAW Pro Bono Project NPC is a non-profit company incorporated in South Africa.

2. Summary of significant accounting policies

These annual financial statements have been prepared in accordance with the International Financial ReportingStandards for Small and Medium-sized Entities issued by the International Accounting Standards Board. Theprincipal accounting policies applied in the preparation of these financial statements are set out below. Thesepolicies have been consistently applied to all the years presented, unless otherwise stated.

These financial statements have been prepared under the historical cost convention and are presented in SouthAfrican Rands.

2.1 Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and/or servicesin the ordinary course of the company's activities. Revenue is shown net of value-added tax, returns, anddiscounts.

The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that futureeconomic benefits will flow to the entity; and specific criteria have been met for each of the company's activities,as described below:

2.2 Income taxation

No taxation is payable in terms of Section 10(1)(CN) of the Income Tax Act.

2.3 Trade and other receivables

Trade receivables are recognised initially at the transaction price. They are subsequently measured at amortisedcost using the effective interest rate method, less provision for impairment. A provision for impairment of tradereceivables is established when there is objective evidence that the company will not be able to collect allamounts due according to the original terms of the receivables.

2.4 Cash and cash equivalents

Cash and cash equivalents includes cash on hand, demand deposits and other short-term highly liquidinvestments with original maturities of three months or less. Bank overdrafts are shown under current liabilitieson the statement of financial position.

2.5 Trade payables

Trade payables are recognised initially at the transaction price and subsequently measured at amortised costusing the effective interest method.

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SASLAW PRO BONO PROJECT NPC (Registration Number 2013/192122/08)

Annual Financial Statements for the year ended 29 February 2016

Notes to the Annual Financial StatementsFigures in R 2016 2015

3. Loans receivable

South African Society for Labour Law (NPC) 30,000 -

The loan is unsecured, bears no interest and is repayablewithin 12 months.

4. Trade and other receivables

Trade debtors 750 -

5. Cash and cash equivalents

Favourable cash balancesCash on hand 42 43Bank balances 6,841 24,157

6,883 24,200

6. Trade and other payables

Trade creditors 3,663 3,715

7. Revenue

An analysis of revenue is as follows:

Gifts and donations income 244,965 279,684Fund raising income - 23,500

244,965 303,184

8. Income taxation expense

No provision has been made as the company is exemptfrom taxation in terms of Section 10(1)(CN) of the IncomeTax Act.

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Detailed Income StatementFigures in R 2016 2015

1.Gross RevenueGifts and donations income 244,965 279,684Fund raising income - 23,500

244,965 303,184 - -

244,965 303,184

2.ExpenditureAdmin and selling expenses 134,488 218,500Audit and Accounting fees 28,194 - Bank charges 2,410 2,350Computer expenses - 14,074Consumables 6,921 - Gifts and prizes 6,518 6,665Marketing 9,578 - Postage - 1,381Printing and stationery 14,462 24,375Repairs and maintenance - 300Subscriptions 1,710 - Telephone and fax 25 5,960Travel - local 10,218 9,094World congress expense 16,956 -

231,480 282,699

Surplus for the year 13,485 20,485

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