ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

Accounting Policies

Value Added Tax Transactions and assets are recognised net of the Value Added Tax amount where applicable. The net amount of Value Added Tax recoverable from, or payable to, South African Revenue Service is included as part of receivables or payable in the statement of financial position.

1.15 Employee benefits Pension obligation

The Corporation uses a defined contribution pension plan. Under a defined contribution pension plan, the Corporation pays a fixed contribution into a separate entity. The Corporation has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee services in the current and prior periods. Leave pay Employee entitlements to annual leave and long‑service leave are recognised when they accrue to employees. A provision is made for the estimated liability of this leave as a result of services rendered by employees up to the reporting date. Performance bonus Short‑term incentives in the form of an annual cash bonus, is linked to achieving financial, strategic and operational objectives. Short‑term incentives are discretionary and depend on business performance and individual contribution. The pool available for short‑term incentives is determined by financial performance against previously set and agreed targets. Employee entitlements to bonuses are recognised when they accrue to employees. A provision is made for the estimated liability of this bonus as a result of past performance by the employees up to the reporting date. Salaries and other benefits Salaries and other benefits e.g. connectivity cost, medical aid etc. are recognised as an expense in profit or loss during the reporting period in which the employee renders the related service. 1.16 Assessment fees Assessment fees are recognised as income on approval of an application for cover by executive management. These are fees received for assessing applications for insurance cover. 1.17 IMU grant receipts The Corporation took over the dtic’s IMU obligations that arose from the IMU Scheme Support Agreements (see note 18). The IMU Scheme is an incentive scheme that limit the interest rate charged to borrowers of export credit loans (borrowers). The Government (through the ECIC) compensates the Financial Institutions for the loss of income they would have received from the borrowers, had interest been levied at the usual rate. The Corporation receives IMU grants from the dtic to assist in funding the IMU obligations towards the Financial Institutions (see the Statement of Cash Flows). IMU Grant is recognised as income when received and all the conditions are met; otherwise recognised as a liability.

YOUR EXPORT RISK PARTNER

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