Southern African Marketing Research Association (NPC) (Registration ...samra.co.za/wp-content/uploads/2015/07/SAMRA_2015-Financial-sta… · Southern African Marketing Research Association

Southern African Marketing Research Association (NPC)(Registration number 2001/020902/08)

Annual Financial Statementsfor the year ended 28 February 2015

M.C. Janse van RensburgChartered Accountant (S.A.)

Registered AuditorIssued __________________

Southern African Marketing Research Association (NPC)(Registration number 2001/020902/08)Annual Financial Statements for the year ended 28 February 2015

Index

The reports and statements set out below comprise the annual financial statements presented to the shareholders:

Index Page

Directors' Responsibilities and Approval 2

Independent Auditor's Report 3

Directors' Report 4

Statement of Financial Position 5

Statement of Profit or Loss and Other Comprehensive Income 6

Detailed Income Statement 12 - 13

Statement of Changes in Equity 7

Statement of Cash Flows 8

Accounting Policies 9

Level of assurance

These annual financial statements have been audited in compliance with the applicable requirements of the Companies Act 71of 2008.

Preparer

M.C. Janse van RensburgChartered Accountant (S.A)

Published

_________________

1


Directors' Responsibilities and Approval

The directors are required by the Companies Act 71 of 2008, to maintain adequate accounting records and are responsible forthe content and integrity of the annual financial statements and related financial information included in this report. It is theirresponsibility to ensure that the annual financial statements fairly present the state of affairs of the company as at the end ofthe financial year and the results of its operations and cash flows for the period then ended, in conformity with the InternationalFinancial Reporting Standard for Small and Medium-sized Entities. The external auditor's is engaged to express anindependent opinion on the annual financial statements.

The annual financial statements are prepared in accordance with the International Financial Reporting Standard for Small andMedium-sized Entities and are based upon appropriate accounting policies consistently applied and supported by reasonableand prudent judgements and estimates.

The directors acknowledge that they are ultimately responsible for the system of internal financial control established by thecompany and place considerable importance on maintaining a strong control environment. To enable the directors to meetthese responsibilities, the board sets standards for internal control aimed at reducing the risk of error or loss in a cost effectivemanner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accountingprocedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughoutthe company and all employees are required to maintain the highest ethical standards in ensuring the company’s business isconducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the companyis on identifying, assessing, managing and monitoring all known forms of risk across the company. While operating risk cannotbe fully eliminated, the company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems andethical behaviour are applied and managed within predetermined procedures and constraints.

The directors are of the opinion, based on the information and explanations given by management, that the system of internalcontrol provides reasonable assurance that the financial records may be relied on for the preparation of the annual financialstatements. However, any system of internal financial control can provide only reasonable, and not absolute, assuranceagainst material misstatement or loss.

The directors have reviewed the company’s cash flow forecast for the year to 29 February 2016 and, in the light of this reviewand the current financial position, they are satisfied that the company has or has access to adequate resources to continue inoperational existence for the foreseeable future.

The external auditor's are responsible for independently auditing and reporting on the company's annual financial statements.The annual financial statements have been examined by the company's external auditor's and their report is presented on page3.

The annual financial statements set out on pages 4 to 13, which have been prepared on the going concern basis, wereapproved by the board on ________________ and were signed on its behalf by:

L. Vorster I. Prinsloo

2

Independent Auditor's Report

To the shareholders of Southern African Marketing Research Association (NPC)

I have audited the annual financial statements of Southern African Marketing Research Association (NPC), as set out onpages 5 to 11, which comprise the statement of financial position as at 28 February 2015, and the statement of profit or lossand other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, andthe notes, comprising a summary of significant accounting policies and other explanatory information.

Directors' Responsibility for the Annual Financial Statements

The company’s directors are responsible for the preparation and fair presentation of these annual financial statements inaccordance with the International Financial Reporting Standard for Small and Medium-sized Entities and requirements ofthe Companies Act 71 of 2008, and for such internal control as the directors determine is necessary to enable thepreparation of annual financial statements that are free from material misstatements, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these annual financial statements based on my audit. I conducted my audit inaccordance with International Standards on Auditing. Those standards require that I comply with ethical requirements andplan and perform the audit to obtain reasonable assurance whether the annual financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual financialstatements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of materialmisstatement of the annual financial statements, whether due to fraud or error. In making those risk assessments, theauditor considers internal control relevant to the company’s preparation and fair presentation of the annual financialstatements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates made by management, aswell as evaluating the overall presentation of the annual financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the annual financial statements present fairly, in all material respects, the financial position of SouthernAfrican Marketing Research Association (NPC) as at 28 February 2015, and its financial performance and cash flows for theyear then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities,and the requirements of the Companies Act 71 of 2008.

Other reports required by the Companies Act

As part of my audit of the annual financial statements for the year ended 28 February 2015, I have read the directors' reportfor the purpose of identifying whether there are material inconsistencies between that report and the audited annualfinancial statements. The directors' report is the responsibility of the directors. Based on reading that report I have notidentified material inconsistencies between it and the audited annual financial statements. However, I have not audited thedirectors' report and accordingly do not express an opinion thereon.

______________________M.C. Janse van RensburgChartered Accountant (S.A)Registered Auditors

Date:_____________574 Rutgers Street

Moreleta Park0181


Directors' Report

The directors have pleasure in submitting their report on the annual financial statements of Southern African MarketingResearch Association (NPC) for the year ended 28 February 2015.

1. Nature of business

Southern African Marketing Research Association (NPC) was incorporated in South Africa with interests in the promotion andprotection of marketing research based on sample surveys and other recognised research techniques. industry. The companyoperates in South Africa.

There have been no material changes to the nature of the company's business from the prior year.

2. Review of financial results and activities

The annual financial statements have been prepared in accordance with International Financial Reporting Standard for Smalland Medium-sized Entities and the requirements of the Companies Act 71 of 2008. The accounting policies have been appliedconsistently compared to the prior year.

Full details of the financial position, results of operations and cash flows of the company are set out in these annual financialstatements.

3. Directors

The directors in office at the date of this report are as follows:

Directors Office Designation NationalityL. Vorster Chief Executive Officer ExecutiveI. Prinsloo Chairperson ExecutiveE.M. Thirion-Venter Other ExecutiveS. Barnard Other ExecutiveA.T. Carrilho Other ExecutiveM. Nkgadima Other ExecutiveS. Naidoo Other Executive

4. Events after the reporting period

The directors are not aware of any material event which occurred after the reporting date and up to the date of this report.

5. Going concern

The directors have reviewed the budgets and cash flow forecasts for the next 12 months, as well as the current liquidity andsolvency position of the company and do not believe that the company has adequate financial resources to continue inoperation for the foreseeable future. The annual financial statements have accordingly not been prepared on the going concernbasis.

6. Auditors

M.C. Janse van Rensburg was appointed in office as auditor for the company for 2015.

At the AGM, the shareholders will be requested to reappoint M.C. Janse van Rensburg as the independent external auditors ofthe company and to confirm Mrs M.C. Janse van Rensburg as the designated lead audit partner for the 2016 financial year.

4


Statement of Financial Position as at 28 February 2015Figures in Rand Note(s) 2015 2014

Assets

Non-Current Assets

Property, plant and equipment 2 129,026 1,150

Rental deposit 18,000 18,000

147,026 19,150

Current Assets

Trade and other receivables 3 230,306 297,262

Cash and cash equivalents 4 1,173,504 1,059,566

1,403,810 1,356,828

Total Assets 1,550,836 1,375,978

Equity and Liabilities

Equity

Retained income 1,469,760 1,311,476

Liabilities

Current Liabilities

Trade and other payables 5 81,076 64,502

Total Equity and Liabilities 1,550,836 1,375,978

5


Statement of Profit or Loss and Other Comprehensive IncomeFigures in Rand Note(s) 2015 2014

Revenue 2,532,434 2,200,151

Cost of sales (951,438) (538,933)

Gross profit 1,580,996 1,661,218

Other income 48 588

Operating expenses (1,478,572) (1,534,310)

Operating profit 102,472 127,496

Investment revenue 55,843 46,405

Finance costs (31) (2,712)

Profit for the year 158,284 171,189

6


Statement of Changes in Equity

Figures in RandRetainedincome

Total equity

Balance at 01 March 2013 1,140,287 1,140,287


Balance at 01 March 2014 1,311,476 1,311,476


Balance at 28 February 2015 1,469,760 1,469,760

Note(s)

7


Statement of Cash FlowsFigures in Rand Note(s) 2015 2014

Cash flows from operating activities

Cash receipts from customers 2,599,390 1,985,813

Cash paid to suppliers and employees (2,399,879) (2,189,966)

Cash generated from (used in) operations 6 199,511 (204,153)

Interest income 55,843 46,405


Net cash from operating activities 255,323 (160,460)

Cash flows from investing activities

Purchase of property, plant and equipment 2 (141,432) -

Sale of financial assets 48 (1,041)

Net cash from investing activities (141,384) (1,041)

Total cash movement for the year 113,939 (161,501)

Cash at the beginning of the year 1,059,566 1,221,067

Total cash at end of the year 4 1,173,505 1,059,566

8


Accounting Policies

1. Presentation of annual financial statements

The annual financial statements have been prepared in accordance with the International Financial Reporting Standard forSmall and Medium-sized Entities, and the Companies Act 71 of 2008. The annual financial statements have been prepared onthe historical cost basis, except for biological assets at fair value less point of sale costs, and incorporate the principalaccounting policies set out below. They are presented in South African Rands.

These accounting policies are consistent with the previous period.

1.1 Property, plant and equipment

Property, plant and equipment are tangible items that:� are held for use in the production or supply of goods or services, for rental to others or for administrative purposes;

and� are expected to be used during more than one period.

Property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses.

Cost includes all costs incurred to bring the asset to the location and condition necessary for it to be capable of operating in themanner intended by management.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurredsubsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item ofproperty, plant and equipment, the carrying amount of the replaced part is derecognised.

Depreciation is provided using the straight-line method to write down the cost, less estimated residual value over the useful lifeof the property, plant and equipment, which is as follows:

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life

Furniture and fixtures Straight line 6 yearsOffice equipment Straight line 4 yearsIT equipment Straight line 3 yearsWebsite Straight line 3 yearsTrophy Straight line 5 years

The residual value, depreciation method and useful life of each asset are reviewed at each higher (lower) if there are indicatorspresent that there has been a significant change from the previous estimate.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised inprofit or loss in the period.

1.2 Revenue

Revenue is recognised to the extent that the company has transferred the significant risks and rewards of ownership of goodsto the buyer, or has rendered services under an agreement provided the amount of revenue can be measured reliably and it isprobable that economic benefits associated with the transaction will flow to the company. Revenue is measured at the fairvalue of the consideration received or receivable, excluding sales taxes and discounts.

Service revenue is recognised by reference to the stage of completion of the transaction at the end of the reporting period. TheStage of completion is determined by surveys of work performed. When the outcome of a transaction involving the rendering ofservices cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that arerecoverable.

Interest is recognised, in profit or loss, using the effective interest rate method.

9


Notes to the Annual Financial StatementsFigures in Rand 2015 2014

2. Property, plant and equipment

2015 2014

Cost Accumulateddepreciation

Carrying value Cost Accumulateddepreciation

Carrying value

Furniture and fixtures 32,059 (31,813) 246 32,059 (30,909) 1,150Office equipment 6,603 (6,603) - 6,603 (6,603) -IT equipment 19,752 (14,819) 4,933 17,467 (17,467) -Website 135,200 (11,353) 123,847 11,000 (11,000) -Trophy 24,304 (24,304) - 24,304 (24,304) -

Total 217,918 (88,892) 129,026 91,433 (90,283) 1,150

Reconciliation of property, plant and equipment - 2015

Openingbalance

Additions Depreciation Total

Furniture and fixtures 1,150 - (904) 246IT equipment - 6,232 (1,299) 4,933Website - 135,200 (11,353) 123,847

1,150 141,432 (13,556) 129,026

Reconciliation of property, plant and equipment - 2014

Openingbalance

Depreciation Total

Furniture and fixtures 3,162 (2,012) 1,150IT equipment 109 (109) -

3,271 (2,121) 1,150

3. Trade and other receivables

Trade receivables 252,751 214,127Prepayments 83,599 186,424VAT - 3,904Provision for bad debts (103,982) (91,431)Unidentified deposits (2,062) (15,762)

230,306 297,262

4. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand 406 553Bank balances 1,173,098 1,059,013

1,173,504 1,059,566

5. Trade and other payables

Trade payables 2,388 -VAT 16,859 -Accruals 61,829 64,502

81,076 64,502

10


Notes to the Annual Financial StatementsFigures in Rand 2015 2014

6. Cash generated from (used in) operations

Profit before taxation 158,284 171,189Adjustments for:Depreciation and amortisation 13,556 2,121(Profit) loss on foreign exchange (48) 1,041Interest received (55,843) (46,405)Finance costs 31 2,712Changes in working capital:Trade and other receivables 66,957 (214,338)Prepayments - (46,099)Trade and other payables 16,574 (74,374)

199,511 (204,153)

7. Directors' remuneration

Executive

2015

Emoluments TotalL. Vorster 989,944 989,944

2014

Emoluments TotalL. Vorster 969,609 969,609

11


Detailed Income StatementFigures in Rand Note(s) 2015 2014

Revenue

Membership 906,460 908,362

Professional Recognition 300,500 187,388

Interest Group 50,150 76,282

Annual Conference 1,031,034 816,480

Professional Development Event 99,250 -

Publications 139,040 200,139

Advertising through SAMRA 6,000 11,500

2,532,434 2,200,151

Cost of sales

Professional recognition (132,187) (9,529)

Interest Group (51,872) (57,982)

Annual Conference (655,150) (442,122)

Professional Development Event (7,897) -

Publications (103,932) (25,285)

Database Subscription (400) -

Talent Management - (4,015)

(951,438) (538,933)

Gross profit 1,580,996 1,661,218

Other income

Recoveries - 588

Interest received 55,843 46,405

Profit and loss on exchange differences 48 -

55,891 46,993

12The supplementary information presented does not form part of the annual financial statements and is unaudited


Detailed Income StatementFigures in Rand Note(s) 2015 2014

Operating expenses

INFO COMM TECH

Copier Leasing (10,306) (11,244)

ITC Maintenance (31,763) (4,014)

Telephone and fax (16,797) (15,561)

Website Hosting (26,435) (18,526)

FINANCIAL

Accounting fees (60,320) (34,243)

Auditors remuneration (9,045) (20,609)

Bad debts - (9,569)

Bad debt provision (12,552) (21,630)

Bank charges (5,728) (11,210)

Depreciation (13,556) (2,121)

MARKETING

Advertising (5,491) (4,992)

Donations/Gifts (1,576) (2,000)

Entertainment (389) -

Materials (585) -

Subscriptions (20,866) (20,850)

FACILITIES

Cleaning (1,875) (2,360)

Electricity & Water (17,276) (13,761)

Office Insurance (9,178) (4,323)

Office rental (97,216) (92,200)

Parking (6,937) (7,461)

Refreshments (675) (275)

Repairs and maintenance - (2,275)

Storage (3,631) (3,505)

ADMINISTRATION & GOVERNANCE

Annual General Meeting

(3,509) (6,093)

Board Meetings (2,443) (2,293)

Courier & Postage (297) (947)

Legal expenses (16,661) (18,752)

Printing and stationery (10,608) (7,142)

HUMAN RESOURCE MANAGEMENT

Conferences

(31,121) (30,327)

Salaries (1,061,735) (1,164,837)

Travel and accommodation - (150)

OTHER

Profit and loss on exchange differences - (1,041)

(1,478,571) (1,534,311)

Operating profit 158,316 173,900



13The supplementary information presented does not form part of the annual financial statements and is unaudited

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