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

A provision is measured as the present value of management’s best estimate of the expenditure required to settle the obligation at the reporting date. 1.13 Components of equity Share capital and share premium Shares are classified as equity when there is no obligation to transfer cash or other assets. All issued ordinary shares and share premium are classified as equity. Incremental costs directly attributable to the issue of equity instruments are shown in equity as a deduction from proceeds. Foreign currency translation reserve The reserve comprises foreign currency translation differences arising from the translation of the financial statements from functional currency to presentation currency. Fair value adjustments through other comprehensive income The reserve comprises of fair value movements from revaluing financial assets available for sale net off the related deferred tax. Taxation for the year on the statement of comprehensive income comprises of current tax, deferred tax and withholding tax. Income tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised directly in equity in which case the related taxation is also recognised in equity. Taxable income used to calculate the tax expense is based on ZAR functional currency (See note 40). Current tax assets and liabilities Current tax is calculated on the basis of the expected taxable income for the year, using the tax rates enacted at the reporting date, and any adjustment of tax payable for previous years. Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset. Current tax liabilities/(assets) for the current and prior periods are measured at the amount expected to be paid to/ (recovered from) the tax authorities, using the tax rates that have been enacted or substantively enacted by the end of the reporting period. Interest received on excess tax payments made is recognised as other income in the statement of comprehensive income in the period when it is accrued from the South African Revenue Services as per the Statement of Account. Deferred tax assets and liabilities Deferred tax is recognised in full, using the balance sheet method, providing for temporary differences, except when the deferred tax arises from the initial recognition of an asset or liability that affects neither accounting nor taxable profit or loss at the time of the transaction. Temporary differences are differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax recognised is based on the expected manner of realisation or settlement of the carrying amount of the assets and liabilities using tax rates enacted or substantively enacted at the reporting date. Deferred tax is charged to the statement of comprehensive income except to the extent that it relates to a transaction that is recognised directly in equity. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the associated unused tax losses and deductible temporary differences can be utilised. Retained earnings Retained earnings includes all current and prior periods’ retained profits 1.14 Taxation Tax expenses

YOUR EXPORT RISK PARTNER

37