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

Other assumptions Assumed healthcare cost trends rates have a significant effect on the amounts recognised in surplus or deficit. A one percentage point change in assumed healthcare cost trends rates would have the following effects:

Effect on defined benefit obligation

Effect on the aggregate of the service cost and interest cost

Discount rate +1%

(96,000) 125,000 127,000 (98,000)

29,568 46,657 46,670 29,452

Discount rate ‑1%

Medical inflation +1%

Medical inflation ‑1%

Amounts for the current and previous four years are as follows:

2020 R

2019 R

2018 R

2017 R

2016 R

Defined benefit obligation

559,000

742,000

720,000

848,000 2,685,000

7. Inventories Consumables

179,649

137,754

8. Receivables from exchange transactions Deposits

632,460 412,373

632,460 103,830

Staff Bursaries and loans

Sundry Debtors

411,812

87,885

Prepaid expenses

3,070,628 4,527,273

3,029,984 3,854,159

Credit quality of trade and other receivables The credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates:

9. Statutory receivables Levies

14,825,803 11,001,051 (9,563,175) 2,924,189 1,437,876 (11,901,614)

Allowance for impairment

None of the financial assets that are fully performing have been renegotiated in the last year.

Fair value of statutory receivables Receivables from non‑exchange transactions are discounted at the rate that is intended to estimate the present value of the receivables as at 31 March 2020. The difference between the discounted amount and the carrying amount is processed in the statement of financial performance as a credit loss allowance. Receivables are non‑exchange transactions levied on mines in accordance with legislation as per the Mine Health and Safety Act. The levy is calculated on national statistics of labour and injuries received from the Mine Health and Safety Inspectorate. Interest on the billed amount is levied at the interest rate as prescribed by National Treasury.

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”