BANKSETA AR 31 AUGUST

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2022

20.

FINANCIAL INSTRUMENTS (CONTINUED)

20.8 Market risk The SETA is exposed to fluctuations in the employment market for example sudden changes in employment or salary rate may impact levy income. The banking sector is also exposed to general market conditions domestically as well as ratings from international agencies. This in turn impacts on the banking sector’s profitability and employment within the sector. The declaration of a National State of Disaster in response to the Covid-19 pandemic and the ensuing lockdowns in 2020/21 has lead to negative impact on profitability for the major stakeholders in the sector for 2020. This is expected to results in reduction in employment within the sector in during the next year. The impact of this on the BANKSETA’s levy income is expected in the next financial year as disclosed under going concern note no 27. 20.9.1 The prior year figure for other receivables from exchange transactions has been restated to exclude prepayments which are not classified as financial instruments. This has been corrected retrospectively as follows: 2020/21 total receivables from exchange transactions figure reported in the prior year Restated 2020/21 total receivables from exchange transactions (in note 20.1 and 20.4) The prior year error has no impact on opening reserves or the statements of financial position or performance. 20.9.2 Prior year figure for total trade and other payables has been restated to excluded provisions which are not classified as financial instruments as follows: 2020/21 total trade and other payables previously reported 3 596 Deduct prepayments incorrectly included (95) 3 501 (104 502) 20.9 Prior Year Error - Restatement 2020/21 R’000

46 655 18 143

Deduct provisions incorrectly included

Deduct mandatory grants payables incorrectly included Restated 2020/21 total trade and other payables (in note 20.1) The prior year error has no impact on opening reserves or the statements of financial position or performance.

(39 704)

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PART E: FINANCIAL INFORMATION | BANKSETA ANNUAL REPORT 2021/22