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

11. Finance lease obligation

Minimum lease payments due ‑ within one year

305,622

548,896 333,975 882,871 (69,453)

‑ in second to fifth year inclusive

16,034

321,656

-

less: future finance charges

Present value of minimum lease payments

321,656

813,418

Present value of minimum lease payments due

‑ within one year

305,622

491,762 321,656 813,418

‑ in second to fifth year inclusive

16,034

321,656

Non‑current liabilities

16,034

321,656

Current liabilities

305,622 321,656

491,762 813,418

It is entity policy to lease certain office equipment under finance leases. The average lease term was 3 years and the average effective borrowing rate was 9% (2019: 9%).

12. Provisions Reconciliation of provisions ‑ 2020

Opening Balance

Additions

Utilised during the year

Reversed during the year

Total

Provision for performance bonus

4,244,441 1,772,851 (2,041,759)

(40,674)

3,934,859

Reconciliation of provisions ‑ 2019

Opening Balance

Additions

Utilised during the year

Total

Provision for performance bonus 4,244,441 The MHSC pays performance bonuses to its employees on or before the end of September of each calendar year. The bonuses are based on the audited results of the preceding financial year, depending on how each employee performed in terms of their performance contract. At 31 March 2020, the policy is to provide for 10% of the total cost to company of the employees. 2,579,346 3,827,244 (2,162,149)

90

“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”