ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

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D

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2

0

A

0

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S

1

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E X P O R T C R E

L T D

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A S

C

R I

D I

F

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A

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N

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E

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Notes to the Financial Statements

Claim and notices of the lender’s intention to accelerate debt repayment After year end, the Corporation has received a claim and notices of the lender's intention to accelerate the debt for the two remaining projects mentioned in the directors' report (the significant events section). At reporting date, the provision for IBNR was raised for these projects. Refer to note 14 for the detailed disclosure.

37. Dividend payable No dividends were paid or declared in the current financial year and prior year.

38. Going concern We draw attention to the fact that at March 31, 2023, the Corporation had accumulated profit of R 2.5 billion and that the Corporation’s total assets exceed its liabilities by R 6.6 billion. The total comprehensive loss of R40 million and cash utilised in operating activities of R313 million is due to claims paid and claims provision. The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The claim reserve disclosed under note 14 does not have an impact on the going concern status of the Corporation as the solvency cover ratio after taking into account all the projected transactions for the next financial year is projected to be 302%, which is above the regulatory cover of 100% as required by the PA.

39. Underwriting results

2023 R’000

2022 R’000

Note(s)

Insurance premium revenue

20

150 357 274 595 277 237 (2 642) (185 833) 239 119

196 290 398 970 401 748 (2 778) (82 606) 512 654

Net change in unearned premiums Gross change in unearned premiums Change in reinsurance unearned premiums

14.1 14.1

10

Change in unexpired risks

14.2

Net insurance premium revenue

Claims incurred

(1 445 623)

(670 106)

Insurance benefits and claims

(784 714) (877 800)

83 644

Claims paid

-

Salvages income

93 086

83 644

Net change in claims reserve

(660 909) (809 615) 148 706

(753 750) (753 750)

Gross change in claims reserves Change in reinsurance claims reserves

14.3 10.2

-

Assessment fees

-

435 429

Reinsurance commission received Commission paid to intermediaries

407

(232)

(195)

Operating expenses Underwriting results

(152 585)

(141 252) (298 035)

(1 358 914)

YOUR EXPORT RISK PARTNER

84