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

Notes to the Financial Statements

23.1 Disclosure as required by section 55 of PFMA Fruitless and wasteful expenditure

2023 R’000

2022 R’000

Opening balance

-

- - -

Additions – relating to previous years

679 624

Additions – relating to current

Closing balance - There is a confirmed fruitless and wasteful expenditure paid in the previous and current reporting periods amounting to R1 303 328.95 (R 678 672.48 for the previous financial years and R624 656.47 for 2023 financial year) which relates to an error in the rate paid to directors. This matter has been referred to the Loss Control Function. Irregular expenditure 1 303

2023 R’000

2022 R’000

Opening balance

- - -

10

Condoned

(10)

Closing balance - The irregular expenditure recorded in the opening balance of the 2022 financial year was as a result of awarding a bid to a supplier whose tax affairs were not compliant. Adequate internal control remedies as outlined in the determination exercise were implemented. Disciplinary steps were taken as a consequence of the irregular expenditure, however no criminal steps were taken as this did not involve criminal activities. This irregular expenditure was condoned by National Treasury during the previous financial year.

24. Interest expense

2023 R’000

2022 R’000

Leases liability

792

67

25. (Loss)/Profit on foreign exchange differences The foreign exchange differences arise as a result of revaluing Rand monetary net assets from historic rates to closing rate.

2023 R’000

2022 R’000 4 615 (5 738) 65 980

Cash and cash equivalents

(42 399)

Net assets (excluding insurance contract liabilities and cash and cash equivalents)

(1 630)

Financial assets at fair value and derivative instruments

(570 073)

Insurance contract liabilities

2 471

574

(611 631)

65 431

YOUR EXPORT RISK PARTNER

76