MHSC ANNUAL REPORT 2020

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Mine Health and Safety Council for the year ended March 31, 2020

Notes to the Financial Statements

2020 R

2019 R

2019

R Less than 1year

R 1‑2years

R 2‑5years

R 5+years

Total

Trade and other payables Finance lease obligations

19,124,138

-

- - -

- -

19,124,138

493,615

301,277

794,89

Admin fine liability

-

-

4,295,627 4,295,627

4,295,627

301,277 -

19,617,753

24,214,657

Credit risk Credit risk consists mainly of cash deposits, cash equivalents, and trade debtors. The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter‑party. Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored. Sales to retail customers are settled in cash or using major credit cards. Credit guarantee insurance is purchased when deemed appropriate.

Financial instrument

2020

2019

Trade receivables from exchange transactions

4,527,273 3,854,159

Cash and cash equivalents

128,578,693 155,149,452

24. Going concern 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. 25. Events after the reporting date The uncertainties due to the COVID‑19 impact that have to be considered relate to the cost of the building which might be less than the original R 70m budget and whether National Treasury will allow MHSC to retain unutilized funds to cover operational expenses and also the uncertainty on levy collections resulting from the impact of COVID‑19.

26. Irregular expenditure

Irregular Expenditure ‑ current year

34,481,194 21,514,167 22,778,357 1,264,190

Irregular Expenditure ‑ previous year

Opening balance as restated

57,259,551 22,778,357 57,259,551 22,778,357

Closing balance

Irregular expenditure investigations are still ongoing and were not concluded at year end.

99

“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”