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Financial Statements

31 December 2016

Dream Vacation Club Financial Statements

31 December 2016

Financial Statements 2016 | Page 1

REGISTERED OFFICE 310 Main Road Bryanston 2021 TRUSTEES I. Demirtas R.W.Dickson M. Gopal D.I. Gordon C. Hutton F.J. Swanepoel RENTAL AGENT Dream Hotels and Resorts (Pty) Ltd 310 Main Road Bryanston 2021 BANKERS First National Bank Limited WHOLLY OWNED COMPANIES Northern Investments (Proprietary) Limited Avalon Springs Timeshare (Proprietary) Limited Unit 11 Castleton (Proprietary) Limited Nettie Property Trust

PROPERTY BUYING COMPANY Sandton Sales (Proprietary) Limited 310 Main Road Bryanston 2021 AUDITORS Booysen & Dry 435 Kirkness Street Clydesdale 0002 POSTAL ADDRESS P.O. Box 786027 Sandton 2146 CONTACT DETAILS Telephone: (011) 267 8300 Facsimile: (011) 706 1044 E-mail: [email protected] Web Site: http://www.dreamvacs.com


31 December 2016


Table of Contents

Page

APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS ……………………………… 3

REPORT OF THE INDEPENDENT AUDITORS ……………………………… 4 - 5

TRUSTEES REPORT ……………………………… 6 - 13

STATEMENT OF FINANCIAL POSITION ……………………………… 14

STATEMENT OF COMPREHENSIVE INCOME ……………………………… 15

STATEMENT OF CHANGES IN EQUITY ……………………………… 16

CASH FLOW STATEMENT ……………………………… 17

NOTES TO THE FINANCIAL STATEMENTS ……………………………… 18 - 24

DETAILED INCOME STATEMENT ……………………………… 25

ANALYSIS OF HOLIDAY ACCOMMODATION ……………………………… 26 - 28

DRAFT MINUTES OF ANNUAL GENERAL MEETING ……………………………… 29 - 31

Approval of the Annual Financial Statements The financial statements of the Club which appear on pages 6 to 28 were approved by the Board of Trustees on Monday 9th October 2017, and are signed on their behalf by:

_________________ WESTON DICKSON CHAIRMAN


31 December 2016


Report of the Independent Auditors

REPORT OF THE INDEPENDENT

AUDITORS TO THE MEMBERS OF DREAM

VACATION CLUB

We have audited the annual financial statements of Dream Vacation Club set out on pages 9 to 18 for the year ended 31 December 2016. These financial statements are the responsibility of the trustees. Our responsibility is to express an opinion on these financial statements based on our audit.

Trustee's Responsibility for the Financial

Statements

The trustees are responsible for the

preparation and fair presentation of these

financial statements in accordance with the

basis of accounting as described in note 1 to

the financial statements. This responsibility

includes: designing, implementing and

maintaining internal control relevant to the

preparation and fair presentation of financial

statements that are free from material

misstatement, whether due to fraud or error;

selecting and applying appropriate accounting

policies; and making accounting estimates that

are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express an opinion on

these financial statements based on our audit.

We conducted our audit in accordance with

International Standards on Auditing. Those

standards require that we comply with ethical

requirements and plan and perform the audit to

obtain reasonable assurance whether the

financial statements are free from material

misstatement.

An audit involves performing procedures to

obtain audit evidence about the amounts

disclosed in the financial statements. The

procedures selected depends on the auditor's

judgement, including the assessment of the

risks of material misstatement of the financial

statements, whether due to fraud or error. In

making those risk assessments, the auditor

considers internal controls relevant to the

entity's preparation and fair presentation of the

financial statements in order to design audit

procedures that are appropriate in the

circumstances, but not for the purpose of

expressing an opinion on the effectiveness of

the entity's internal control.

An audit also includes evaluating the

appropriateness of accounting policies used

and the reasonableness of accounting

estimates made by the trustees, as well as

evaluating the overall presentation of the

financial statements, in accordance with the

basis of accounting policies described in note

1.

Without qualifying our opinion, we emphasise

that the basis of accounting and the

presentation and disclosures contained in the

financial statements do not in some respects,

comply with the requirements of International

Financial Reporting Standards.

Basis for Qualified Opinion

The accounting policy with regard to the

disclosure of the value of holiday

accommodation states that the value will be

determined by the trustees. According to the

Clubs' Scheme Rules the value of holiday

accommodation will be determined, from time

to time, by an independent valuator.

We received the valuation method used by the

trustees and although it is consistent with the

method used in previous years, taking into

consideration the current economic climate and

property market, we disagree with the method

used. For the year under review no

independent valuation was done by a valuator

and subsequently we could not obtain sufficient

audit evidence to confirm the value of holiday

accommodation as disclosed in the financial

statements.


31 December 2016


Report of the Independent Auditors

Qualified Opinion

In our opinion, except for the effect on the

financial statements of the matter referred to in

the preceding paragraphs, the financial

statements present fairly, in all material

respects, the financial position of Dream

Vacation Club as at 31 December 2016, its

financial performance and its cash flows for the

year ended, in accordance with the basis of

accounting as described in note 1 to the

financial statements.

Supplementary Information

The supplementary schedules, set out on

pages 19 to 23, do not form part of the annual

financial statements and are presented as

additional information. We have not audited

these schedules and accordingly we do not

express an opinion on them.

Booysen & Dry G BOOYSEN CA(SA) Booysen & Dry Registered Auditors Pretoria Date: 31 July 2017


31 December 2016


Trustees Report

The Trustees have pleasure in presenting their

report in respect of operations to the Members

for the financial year ended 31 December

2016.

Nature of Business

The Club operates a holiday points system in

respect of property owned by the Club.

Holidays are provided using the Club’s own

holiday properties, swopping with other

timeshare organisations, renting of

accommodation on a preferential basis and

making use of various exchange organisations.

Review of Activities

The Club had a fairly stable year with the

member base decreasing from 22 911 to 22

206, which amounts to a 3% decrease.

As a result of the current difficult times, some

members have had their Club memberships

cancelled due to non-payment of their annual

subscriptions. Sandton Sales (Pty) Ltd, the

development company have implemented

stricter credit vetting procedures in order to

protect Members from over-extending

themselves financially. All upgrade

applications will be scrutinised on an individual

basis to ensure each Member’s situation is

appropriately considered.

Our credit department endeavours to assist all

members to ensure their membership is not

cancelled. Loan repayment periods are

extended and the skipping of the points

allocated for a year, are some examples of how

we are assisting members without affecting the

financial viability of the Club. Once again, a

large number of members who initially

purchased a starter pack have acquired

additional points to holiday more frequently or

during the high and peak seasons.

Your trustees have been listening to our older

members. With effect from 2017, we

introduced a reduction in member

subscriptions upon reaching 65 years of age,

or older. The reduction of their annual

subscriptions will be reduced by 50%; however,

their usage of holiday accommodation will be

limited to certain seasons and resorts. Our

Senior Membership allows full week access to

specific resorts around the country during off

peak periods. In addition, our Senior Members

will have access to midweeks at all other

resorts within the Club’s portfolio, excluding

peak and high demand periods.

All Senior Members are also entitled to book

the Dream Vacation Club bonus breaks

available from time to time during the year.

Furthermore, should payment of subscription

fees be made before the 15th December each

year for the following year, our Senior Members

will receive a further 10% discount, although if

this payment is made via credit card, only a 5%

discount will be allowed due to bank charges

incurred.

2016 has been another exciting year with the

acquisition of more new properties being added

to the Club’s portfolio, the expansion and

development of the rental division and the

completion of much needed renovations to

certain properties continues.

I would like to expand on some of the major

highlights:

Dream Hotels & Resorts

At the start of 2015, we announced the re-

branding of the Group to Dream Hotels &

Resorts. Dream Vacation Club is one of the

products developed and sold by the Group.

The rebranding has allowed the Group to

position themselves as a reputable hospitality

and tourism group, which has opened doors

and connected relationships; ultimately

improving the offering to the Club and its


31 December 2016


Trustees Report

Members. We are proud of the brand traction

to date and we believe that it will continue to

improve the Club’s rental division, thereby

reducing the Club levy liabilities on slow-

moving stock.

The Vic Hotel 1906, Montagu

The Vic Hotel 1906 was originally purchased to

accommodate the students for the Dream Hotel

School. The progress was initially fairly slow,

however the demand for 2018, has exceeded

our original forecasts. The Vic Hotel 1906 in

2016 and 2017 was used by Dream Vacation

Club to alleviate the high demand at Avalon

Springs. During 2016, the staff house was

upgraded in order to accommodate additional

staff and students. Avalon Springs has

purchased the neighbouring house to

accommodate additional students, and The Vic

Hotel 1906 will remain part of the portfolio.

Piekenierskloof Mountain Resort

The Western Cape is experiencing one of the

worst droughts in many years, which resulted

in a very disappointing flower season during

August and September; regrowth in the area

after the devastating fire in 2016 has also been

slow.

Recent improvements and upgrades include

the following:

The indoor pool, shower and toilet facilities have been upgraded;

The laundry and workshop building has been rebuilt, together with new staff shower and toilet facilities;

Above the laundry and workshop area staff accommodation, all on-suite, plus a communal lounge and kitchen area, has been built. The accommodation caters for 16 staff and is the envy of the industry;

The sewerage plant has also been expanded;

Additional water storage tanks have been erected in the old water reservoir area as additional back up supply.

The fire damaged zip line has been reinstalled

and is now fully operational.

Mjejane Bush Camp

The terrible drought in Mpumalanga was

broken in 2016, and the bush has returned to

its previous condition. Game viewing on the

property has been outstanding. The sales

progress has been excellent in an extremely

difficult market. To date 33 units have been

completed. The sales program should be

completed by end of 2018. Dream Hotels &

Resorts have transferred additional timeshare

weeks to Dream Vacation Club in order to cater

for the growing demand. The opening of the

bridge from Mjejane directly into the Kruger

National Park is receiving the full attention of

the Mjejane Home Owners Association, and it

is hoped that this matter will be resolved as

soon as possible.

Dream Hotels & Resorts is only involved with

Mjejane Bush Camp, and not with the Lodge or

with the rest of the ownership development.

In September 2017, AfriAsia Bank (based in

Mauritius) rated Mjejane Estate as the 7th

ranked Estate in South Africa. The other

estates included Fancourt, Zimbali and Steyn

City. Mjejane is the only wildlife estate.

Finfoot Lake Reserve

In 2016, Dream Hotels & Resorts re-launched

Finfoot Lake Reserve, situated in the Vaalkop

Conservancy in the Greater Pilanesberg

region, and has been added to the Club’s

portfolio. The resort comprises of 2,000

hectares of pristine wildlife, direct access onto

the Vaalkop dam with barges, canoes and


31 December 2016


Trustees Report

fishing. The resort is 45 minutes from Sun City

and the Pilanesberg National Park. Finfoot

Lake Reserve officially opened their doors at

the end of September 2016 and offers not only

conference facilities but fantastic wildlife and

interactive activities for both family holidays

and corporate events. The self-catering unit,

consisting of 4 bedrooms was also upgraded in

2016.

The Club members have access to Finfoot

Lake Reserve rooms and the self-catering unit

on a preferential rate basis. The intention is to

build 18 additional self-catering units over a

period of 3 to 4 years, depending on demand.

Bilene Club Lodge

Dream Hotels & Resorts funded the completion

of Block 4, consisting of 2 x two bedroom units

and 2 x three bedroom units.

The existing three blocks made up of 12 x two

bedroom units were upgraded during the year.

This included the upper floor units receiving a

concrete slab floor (this has helped

dramatically with the noise problem), glass

balustrades, new staircases and more recently

the kitchens have been replaced.

The rim flow swimming pool has since been

completed, which has contributed to the

fantastic ambience of the lodge.

Excursions have been added, including

complimentary boat rides across the lagoon to

the beach, guided walks to the turtles, and a

road trip to the awesome sand dunes for dune

riding. A dhow has been purchased for guided

sundowner trips. These have been added to

the lagoon beach activities along with the

kayaks.

The border post between South Africa and

Mozambique has improved dramatically, taking

between 40 minutes to an hour. A new bypass

to Maputo has made this trip to Bilene and

Chicuanga far more pleasant. The roads are in

good condition. The rental demand from the

Maputo market has increased in leaps and

bounds.

Le Franschhoek Hotel & Spa

In May 2015, Dream Hotels & Resorts

concluded the purchase of the management

company of the prestigious Le Franschhoek

Hotel & Spa, situated in the beautiful town of

Franschhoek. The hotel experience has been

offered to our Club members.

In June 2016, the lease of the 16 one and two

bedroom Villas was finalised, adding another

dimension to the Club offering. A feature of

Dream Hotels & Resorts is to not only offer

self–catering accommodation, which is the

cornerstone of the Club, but to also offer a

typical hotel experience on the same property.

The properties that provide this are

Piekenierskloof Mountain Resort in the

Cederberg, Le Franschhoek Hotel & Spa in

Franschhoek, Avalon Springs and The Vic

1906 Hotel in Montagu, The Peninsula All-Suite

Hotel in Cape Town, The Blue Marlin Hotel in

Scottburgh and Nibela and Sobhengu Lake

Lodge on Lake St Lucia.

The Peninsula All-Suite Hotel

The demand for Cape Town, both by the local

and international market, continues to rise,

pushing rental rates to new levels. The owning

of Dream Vacation Club points has at least

alleviated the price push for our members. The

Strolla Restaurant is growing all the time.

Friday evenings offer some live entertainment

up until 22:00. The demand from the local

Capetonians has been encouraging and, as

people say, eat where the locals eat, as they

know best. When next at The Peninsula, do try

the Strolla restaurant. A recent improvement to

the Strolla Restaurant is a roof cover on the

outside deck. This has assisted with the chill

during the winter months and cooler evenings,

as well as shade from the sun during the

summer months.


31 December 2016


Trustees Report

Avalon Springs

Demand still remains very high at this resort.

Upgrading and refurbishments are ongoing.

An energy saving system has been installed in

the Mountain Chalets, which should start

showing savings during 2017. In addition, this

should overcome the outside spa bath water

temperature problems.

The Blue Marlin Hotel

Additional rooms have been upgraded and the

increased demand is very pleasing. The resort

is cash neutral and further dining facility

upgrades are due to start shortly. The demand

from members has been encouraging.

Cabana Beach

Cabana Beach was awarded the Sanlam Top

Destination award for 2017. Dream Vacation

Club is the largest shareholder at Cabana

Beach.

Tala Collection

Dream Hotels & Resorts continues to pursue

the development and purchase of holiday

properties. During 2017, Dream Hotels &

Resorts purchased a 40% share in Tala

Collection, which is situated between

Pietermaritzburg and Durban. Our partners are

the local community and the NEF (National

Empowerment Fund), which is part of the

Trade & Industry Department. Tala Collection

is principally a game reserve.

The intention is to create an “urban safari

centre” including game drives and guided

walks, mountain bike tracks, archery, zip lines,

Segway (a two-wheeled, self-balancing,

battery powered, electric vehicle) and a water

park.

The Club members will have access to this

property once the program to remove the

operation from business rescue, which is

currently in progress, has been finalised.

Jackalberry Ridge

The revamp of the tents at Jackalberry Ridge

has commenced.

Kiara Lodge

The Club purchased and built 6 new units at

Kiara Lodge, situated outside the picturesque

town of Clarens in the Eastern Free State with

easy access to the Golden Gate Reserve.

These have been well utilised by our members.

Dream Vacation Club Member Services

The department has had another busy year.

Member Services dealt with 124 605 calls, but

still managed to maintain a service level of

90%. In addition, consultants made 32 978

bookings and the on-line website booking

facility is gaining momentum with 6 369

bookings being made during 2016. We

encourage all members to utilise this facility.

As can be seen on the detailed analysis of

weeks owned, the Club has increased its

accommodation portion at our members’

favourite resorts like Umhlanga Sands,

Umhlanga Cabanas and Cabana Beach (all in

Umhlanga Rocks), Club 10 in Ballito and Perna

Perna in Umdloti. On the South Coast

additional accommodation was acquired at La

Cote d’ Azur.


31 December 2016


Trustees Report

RCI Grading

We have summarised the stock held by the Club, as graded by RCI, the top resorts are graded Gold

Crown Resorts, the next Silver Crown Resorts with the balance referred to as Lifestyle Resorts. We

have analysed our stock holding on this basis:

Number of Weeks 2016

Number of

Weeks 2015

% %

Gold Crown 10,882 56 10,828 56

Silver Crown 3,729 20 3,639 19

Lifestyle Resorts 2,175 11 2,069 11

16,786 87 16,536 86

Out of RCI Portfolio 2,656 13 2,796 14

TOTAL WEEKS 19,442 100% 19,332 100%

In terms of VOASA, we are obliged to ensure that we have sufficient time and suitable dates to satisfy

our members’ holiday requirements. The weeks owned by the Club are summarised into seasons.

The peak seasons are the school holidays, the high season is normally high demand season outside

the school holidays, including certain long weekends and public holidays, the mid-season demand is

good but obviously less than high, and low season speaks for itself.

The analysis is as follows:

Number of

Weeks 2016

Number of

Weeks 2015

Points

allocation per Season

% % %

Peak Season 5,097 26 5,397 28 30,005,595 40

High 9,692 50 9,394 49 31,407,975 42

Medium 3,965 20 3,856 20 11,032,740 15

Low 688 4 685 3 1,689,700 3

TOTAL 19,442 100% 19,332 100% 731,923,28 100%

The Club endeavours to purchase more weeks in the peak and the high holiday seasons and only a

few weeks in the low seasons. As demand increases for breakaway weekends and weekdays at

nearby destinations, the Club has catered for these changing needs.


31 December 2016


Trustees Report

Holiday Bookings

We again report the same as in previous years.

The Club has a ‘delivery promise’ that should a

member request a local booking 8 months prior

to occupation, the members request will be

honoured. We are proud to report that each

and every request was honoured, apart from a

few bookings received in September, October

and November. As trustees, we believe this is

an indication of dedication and commitment,

and that the system works.

Over Crowding of Accommodation

Overcrowding of accommodation cannot be

tolerated. The maximum number of guests

entitled to stay in a unit is clearly stipulated on

the members booking confirmation. Should

members exceed this number, resort

management has been instructed to request

members to vacate the accommodation. The

same applies to excessive noise levels after an

acceptable time in the evening. Please don’t

fight with the resort management.

Overcrowding places additional wear and tear

costs on the Club and excessive noise levels

are unfair on your neighbours and fellow Club

members.

Management

The affairs of the Club are managed by Dream

Hotels & Resorts. The management includes

the arranging of members’ holidays, collection

of members’ annual subscriptions, payment of

levies to various resorts, management of

properties owned outright by the Club and

normal daily affairs.

Interesting Statistics

The American Resort Development

Foundation (ARDA) published an interesting

statistic, ‘Vacation owners spent 20.6 days on

holiday per annum in 2016, while non-owners

spent a shorter 14.6 days per annum’. I am

certain this is because their holidays are

prepaid.

In America, millennials and younger adults are

more likely to be vacation owners. The 18 – 34

age group makes up 69% of owners, 35 – 49

age group makes up 21% and the 50 and over

age group constitutes a smaller 10%. This is

definitely not the trend in South Africa. This is

a major concern for our industry and every

effort must be made to turn this around.

The Financial Affairs

The Club’s financial affairs were well managed

during the year. The surplus of the Club was

R27,102 after taxation, allowing for future

holiday needs. The subscription income

increase was as a result of new points sold and

existing members purchasing additional points,

as well as an inflationary increase of 7.75%

The Club has a rental division that rents out

excess accommodation. The accommodation

is normal over quieter times and excludes any

peak season time. All the income generated

from rentals is utilised to assist with overseas

bookings, and certain 8-month delivery

promises. Rentals received, plus exchange

fees totalled R10,380,106. Overseas rentals

and local rentals paid, was R8,417,853.

Reasons for some of the variances are as

follows:

Levies paid increased as a result of the increased stock holding and due to certain large special levies;

The management fee payable to Dream Hotels & Resorts increased by 8%. The fee covers salaries of all staff, rent, telephone costs and general office expenses. A certain amount of these costs is shared with the development company, Sandton Sales (Pty) Ltd;

Printing and stationery decreased this year due to the fact that the printing of the Member Companion only gets printed every second year;


31 December 2016


Trustees Report

Exchange fees increased this year as more exchange companies were utilised;

Accounting fees were charges paid to an outside company to assist with the Clubs VAT payments and allowable input allowances;

Bank charges showed a substantial reduction due to an error discovered after last year’s audit. A charge of R875,000 was reversed. This benefit will not be repeated in 2017.

IT Development

IT is crucial to the Club’s and the Dream Hotels

& Resorts’ business model. The young mainly

use online booking systems. We are

developing these platforms in order to integrate

Dream Vacation Club, Dream Hotels & Resorts

and the various booking channels to ensure we

stay abreast of the market.

The use of social media is used extensively.

Our ‘e’ Guest Survey system allows members

to complete an online guest questionnaire.

This enables real-time information to be

circulated to resort managers and appropriate

personnel, ensuring any problems that may

arise are addressed immediately. The overall

satisfaction rating for 2016 was 87.7% from 5

919 completed surveys.

Exchange Organisations

The Club has various agreements with several

exchange organisations including RCI and

Interval International. In most instances, there

are exchange fees and space banks required

to obtain stock from them.

The offering of our exchange and rental

programme through Dream Premier Collection

at upmarket resorts, including Zimbali, Zebula,

Mjejane, Black Rhino and Pinnacle Point, to

name a few, is available to our Platinum Club

members.

All hotel facilities offered by Dream Hotels &

Resorts are available to Dream Vacation Club

members using their points.

Awards

At the RCI Annual Awards evening held in

March 2017, the following resorts owned /

managed by Dream Hotels & Resorts were

recognised:

Gold Crown Resorts

Jackalberry Ridge;

Piekenierskloof Mountain Resort;

The Peninsula All-Suite Hotel;

Burchell’s Bush Lodge.

Silver Crown Resorts

Avalon Springs;

Blue Marlin Hotel;

Nibela Lake Lodge;

Sobhengu Lodge.

Trip Advisor has awarded their ‘Certificate of

Excellence’ to the following resorts:

Blue Marlin Hotel;

Burchell’s Bush Lodge;

Finfoot Lake Reserve;

Stonehill River Lodge;

Nibela Lake Lodge was awarded ‘A 2017 Top

Valued Establishment Award’ by

AccommoDirect.com.

Finfoot Lake Reserve was awarded 4 Stars by

the SA Tourism Grading Council.

Camelot Spa at the Le Franschhoek Hotel and

Spa in Franschhoek won the Thalgo award for

Best Hotel Spa in South Africa in September

2016.

Note: All these resorts are managed by Dream

Hotels & Resorts.


31 December 2016


Trustees Report

Dream Rewards Members

Dream Hotels & Resorts, excluding Dream

Vacation Club’s various timeshare weeks,

manages 699 rooms per night, translating into

2,088 bed nights (excluding sleeper couches).

In order to capitalise on these guests, we have

introduced the “Dream Rewards Member”

program. The intention is to encourage these

members to become members of Dream

Vacation Club, thereby increasing the size and

availability of holiday accommodation for our

members.

National Consumer Commission

The N.C.C. (National Consumer Commission)

is currently investigating the timeshare

industry, and particularly the points based

clubs. We encourage this investigation as we

feel we have nothing to hide and we have a

very satisfied member base.

Trustees

The following acted as trustees during the year:

Ilhami Demirtas;

Weston Dickson;

Mandy Gopal;

Diane Gordan;

Colin Hutton;

Ferdie Swanepoel.

No remuneration was paid by the Club to the

trustees for their duties. The trustees attend as

many Annual General Meetings as possible for

the resorts, where the Club owns timeshare or

sectional title units. In addition, the trustees

also act as directors, or trustees, in certain

resorts where major stock holdings are held. It

is an added benefit for our members to have

such representation at these meetings, as the

knowledge gained helps the trustees keep

abreast of developments and standards at the

relevant resorts. Regular site visits are made

during the year to the various resorts to ensure

standards are maintained.

Appreciation

I would like to thank my fellow trustees and all

staff involved with the Club for their hard work

and dedication. The progress and

development of Dream Vacation Club, the

guest reservation programmes and expansion

of the hotel division doesn’t just happen, all our

staff have played a role in developing this

growth and it is our intention to continue this

growth.

With this team in place, we can expect another year of providing memorable holidays for our members.

_________________ WESTON DICKSON CHAIRMAN


31 December 2016


Statement of Financial Position

Notes 2016 2015 R R ASSETS Non-current assets 1 429 925 257 1 405 520 367

Holiday accommodation 2 1 423 358 533 1 400 060 524 Fixed assets 3 320 170 480 177 Investments 4 6 246 554 4 979 666

Current assets 25 652 091 19 761 893

Trade and other receivables 5 3 219 324 2 884 900 Prepayments 9 095 248 7 869 920 Inventories 6 3 852 2 150 Cash and cash equivalents 13 333 667 9 004 923

Total assets 1 455 577 348 1 425 282 260

EQUITY AND LIABILITIES Capital and reserves 1 424 183 920 1 400 858 808

Members' investments 7 1 056 502 655 1 033 204 645 Accumulated surplus 8 825 386 798 284 Non-distributable reserve 9 366 855 879 366 855 879

Non-current liabilities Interest bearing borrowings 10 3 302 494 2 035 606 Current liabilities 28 090 934 22 387 846

Trade and other payables 4 720 226 1 903 999 Subscriptions in advance 23 198 439 20 322 117 Taxation 172 269 161 730

Total equity and liabilities 1 455 577 348 1 425 282 260


31 December 2016


Statement of Comprehensive Income for

the Year Ended 31 December 2016

Notes 2016 2015

R R

INCOME

Subscriptions received

116 054 090

108 319 148

OTHER INCOME 11 205 372 7 233 378

Interest received 620 196 570 409

Other 205 070 197 254

Rentals received 10 380 106 6 465 715

127 259 462 115 552 526

Operating costs after taking into account the following expenses:

127 221 821 115 524 923

124 126 553 111 206 980

Interest paid 121 964 118 410

Exchange fees 143 866 111 858

Management fees 18 421 515 17 056 958

Levies 97 021 355 88 245 055

Rentals 8 417 853 5 674 699

NET SURPLUS BEFORE TAXATION 37 641 27 603

Less: Income tax 15 10 539 7 729

NET SURPLUS FOR THE YEAR 27 102 19 874


31 December 2016


Statement of Change in Equity for the

Year Ended 31 December 2016

R R R R

Members' investment

Accumulated

surplus

Non - distributable

reserves Total

Balance at 31 December 2014 986 262 561 778 410 366 855 879 1 353 896 850

Net point sales for the year 46 942 084 - - 46 942 084

Net surplus for the 2015 year - 19 874 - 19 874

Revaluation of investments - - - -

Balance at 31 December 2015 1 033 204 645 798 284 366 855 879 1 400 858 808

Net point sales for the year 23 298 010 - - 23 298 010

Net surplus for the 2016 year - 27 102 - 27 102

Revaluation of investments - - - -

Balance at 31 December 2016 1 056 502 655 825 386 366 855 879 1 424 183 920


31 December 2016


Cash Flow Statement for the

Year Ended December 2016

Notes 2016 2015

R R

Cash flow from operating activities 4 406 281 4 113 734

Cash generated/(utilised) by operations 16 3 908 049 3 661 735

Adjustments for:

Interest received 620 196 570 409

Interest paid (121 964) (118 410)

Cash flow from investing activities (24 642 434) (44 189 815)

Holiday accommodation purchased (23 298 010) (46 942 084)

(Increase)/Decrease in fixed assets (77 535) (223 002)

(Increase)/Decrease investment (1 266 889) 2 975 271

Cash flow from financing activities 24 564 897 45 466 813

Increase/(Decrease) in members investment 23 298 010 46 942 084

Increase/(Decrease) in long term borrowings 1 266 887 (1 475 271)

Net increase/(decrease) in cash and cash equivalents 4 328 743 5 390 732

Cash and cash equivalents at beginning of period 9 004 924 3 614 192

Cash and cash equivalents at end of period 13 333 667 9 004 924


31 December 2016


Notes to the Financial Statements for


1. ACCOUNTING POLICIES:

The following are the principle accounting policies of the Club which are consistent with those applied

in the previous year.

Basis of Preparation The financial statements are prepared in terms of International Financial Reporting Standards (IFRS)

and in the manner required by the Constitution. The Financial statements have been prepared on

historical cost basis except for: holiday accommodation carried at trustees fair value, financial assets

and liabilities to be carried at amortised cost.

Subscriptions Subscriptions are recognised as revenue when they become due and payable by the members.

Members' Investments Members' investments is stated at the gross value of points sold to the members.

Holiday Accommodation

The cost of holiday accommodation is allocated Dream Vacation Club points, which vary according to

size, season and quality of the resort. The value of points allocated are reviewed annually by the

trustees. Holiday accommodation is reflected at the trustees valuation.

Fixed Assets

Fixed assets are stated at cost less impairments and depreciation applied on a straight-line basis over

the useful life of the asset.

Computer Equipment -33.3%

Motor Vehicles -25%

Appliances -20%

Inventories Inventories are valued at the lower of cost or estimated net realisable value and cost is determined on

the following basis:

Consumables and merchandise are valued at invoice cost on a first-in first-out basis.


31 December 2016




Impairment Assets subject to amortisation are reviewed for impairment if circumstances or events change to

indicate the carrying value may not be fully recoverable. Where such circumstances exist the asset,

value is determined at the net recoverable amount.

Wholly Owned Companies The share investments are stated at nominal value and the financial positions are incorporated in

holiday accommodation and long-term liabilities.

Financial Assets and Liabilities Financial assets and financial liabilities are initially recorded at fair value. For those financial

instruments that are not subsequently held at fair value, the Club assesses whether there is any

objective evidence of impairment at each statement of financial position date.

Financial assets are recognised when the Club has rights or other access to economic benefits. Such

assets consist of cash, equity instruments, a contractual right to receive cash or another financial

asset, or a contractual right to exchange financial instruments with another entity on potentially

favourable terms. Financial assets are derecognised when the right to receive cash flows from the

asset have expired or have been transferred and the Club has transferred substantially all risk and

rewards of ownership.

Financial liabilities are recognised when there is an obligation to transfer benefits and the obligation

is a contractual liability to deliver cash or another financial asset or to exchange financial instruments

with another entity on potentially unfavourable terms. Financial liabilities are derecognised when they

are extinguished, discharged, cancelled or expired.

If a legal enforceable right exists to set off recognised amounts of financial assets and liabilities, which

are in determinable monetary amounts, and there is the intention to settle net, the relevant financial

assets and liabilities are offset.

Interest cost is charged against income in the year in which it accrues. Interest income earned is

recognised in the year in which it accrues.

Financial Assets at Fair Value Through Profit and Loss These financial instruments are carried at fair value with fair value movement recognised in the income

statement. Where the investments are equity instruments that do not have a quoted market price in

an active market and whose fair value cannot be reliably measured shall be measured at cost.

Loans and Receivables Loans and receivables are assets with fixed or determinable payments which are not quoted on an

active market. They are included in current assets, except for maturities of greater than 12 months

after the statement of financial position date which are classified as non-current assets. Loans and


31 December 2016




receivables are initially recognised at fair value and subsequently measured at amortised cost using

the effective interest rate method less provision for impairments.

Financial Liabilities Financial liabilities are recognised initially at fair value, and subsequently stated at amortised cost

including accrued interest and prepaid interest. Borrowing's are classified as current liabilities unless

the Club has an unconditional right to defer settlement of the liability for at least 12 months from the

statement of financial position date.

Provisions Provisions are recognised when the Club has a present legal or contractual obligation as a result of a

past event, for which it is probable that an outflow of economic benefits will occur, and where a reliable

estimate can be made of the amount of the obligation.

Financial Risk Management Foreign exchange risk The Club is not exposed to foreign exchange risk as no foreign currency transactions are entered into.

Interest rate risk The club has interest bearing assets which earn interest at 3% above prime. Had interest rates been

1% higher during the year the net interest earned would have been R45,967 more. Had interest rates

decreased by 1% the net interest income earned would have been R45,967 less.

Credit risk Credit risk arises from non-payment of subscriptions from members.

The Club manages this risk by administering strict ITC checks before the member is accepted into the

Club and by close monitoring of repayments. The Club holds the right to restrict the member use of

their points if accounts are not paid up in full.

Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash resources to meet the operating

requirements of the Club. This is monitored closely by the financial manager and trustees.


31 December 2016




2016 2015

2. HOLIDAY ACCOMMODATION: R R

Holiday accommodation - at cost price

1 056 502 654 1 033 204 645

Revaluation surplus

366 855 879 366 855 879

Balance at the end of the year

1 423 358 533 1 400 060 524

The accommodation comprises of unit modules purchased at various holiday resorts for the use and enjoyment

of the Club's members. The list of resorts is provided on page 20 to 23. Some of the unit modules have not yet

been registered in the Club's name or are registered in dormant wholly owned companies.

The Trustees valuation of these properties at 31 December 2016 is R1 423 358 533 (2015 - R1 400 060 524).

3. FIXED ASSETS Computer Equipment

Motor

Vehicles Appliances Total

Carrying amount at beginning of year 255 455 224 721 1 480 177

Cost price

1 202 907 642 338 30 397 1 875 642

Accumulated depreciation

(947 452) (417 617) (30 396) (1 395 465)

Additions

180 800 - 4 482 185 282

Disposals (net)

- (107 747) - (107 747)

Depreciation for the year

(185 750) (51 792) - (237 542)

Carrying amount at end of year

250 505 65 182 4 483 320 170

Cost price

1 383 707 522 057 34 879 1 940 643

Accumulated depreciation

(1 133 202) (456 875) (30 396) (1 620 473)


31 December 2016




4. INVESTMENTS 2016 2015

R R

Long term loans:

Sandton Sales (Proprietary) Limited-Debtors 2 943 560 2 943 560

(The investment carries interest at 3% above the prime overdraft rate and the interest is utilised to pay for rental expenses on behalfof the members of the Club.)

Sandton Sales (Proprietary) Limited-encumbrances 3 302 494 2 035 606

(refer to note 10)

Wholly owned companies at nominal value 500 500

6 246 554 4 979 666

5. TRADE AND OTHER RECEIVABLES

Subscriptions and rental debtors 3 219 324 2 884 900

6. INVENTORIES

Consumables stores 3 852 2 150

7. MEMBERS' INVESTMENTS

Balance at the beginning of the year 1 033 204 645 986 262 561

Net point sales for the year 23 298 010 46 942 084

Balance at the end of the year 1 056 502 655 1 033 204 645

These funds will only be distributed to the members in the event of the sale of the holiday accommodation, or the termination of the Club.

8. ACCUMULATED SURPLUS

Balance beginning of the year 798 284 778 410

Net surplus for the current year 27 102 19 874

Balance at the end of the year 825 386 798 284

9. NON-DISTRIBUTABLE RESERVE

Balance at the beginning of the year 366 855 879 366 855 879

Revaluation current year - -

Balance at the end of the year 366 855 879 366 855 879

Surplus on revaluation of holiday accommodation.


31 December 2016




2016 2015

10. NON-CURRENT LIABILITIES R R

Interest bearing borrowings 3 302 494 2 035 606

The repayment of these liabilities is the responsibility of Sandton Sales. (Proprietary) Limited in lieu of points received in Dream Vacation Club. The liabilities are repayable in monthly instalments and interest is charged at current mortgage bond rates. Some of these liabilities are registered in wholly owned dormant companies (refer to note 4).

11. AUDITORS' REMUNERATION

Audit fees - current year 263 576 260 500

263 576 260 500

12. INTEREST PAID

Stock finance creditors 116 062 115 428

Other 2 444 -

Banks 3 458 2 982

121 964 118 410

13. LEVIES PAID 97 021 355 88 245 055

Levies are paid to resorts in which the Club owns, leases or have usage rights.

14. MANAGEMENT FEES 18 421 515 17 056 958

Management fees are the costs of administering the Club. These include the reservation of members holiday bookings, collection of the annual subscriptions and paying of the levies for the Club's properties. These costs include salaries and payroll burden, rent, telephone and office expenses. Certain of these expenses are split between the developer, Sandton Sales (Proprietary) Limited and the Club.


31 December 2016




15. TAXATION 2016

2015

R

R

S.A. Normal taxation 10 539

7 729

Effective rate of taxation

28%

28%

South African normal rate of taxation

28%

28%

16. NOTES TO THE CASH FLOW STATEMENT

Reconciliation of net surplus before tax to cash generated

from operating activities.

Net surplus before interest paid and tax 159 605

146 013

Adjustment for non-cash items:

Depreciation 237 542

303 270

Interest received

(620 196)

(570 409)

Operating surplus before changes in working capital (223 049)

(121 126)

Changes in working capital 4 131 098

3 782 861

Decrease/(increase) in accounts receivable

(334 423)

(258 133)

Decrease/(increase) in inventory

(1 702)

310

(Decrease)/increase in accounts payable 5 692 548

1 350 177

Decrease/(increase) in prepayments

(1 225 325)

2 690 507

3 908 049

3 661 735


31 December 2016


Detailed Income Statement for the

Year Ended 31 December 2016

2016 2016 2015

Actual Budget Actual

R R R

INCOME

Subscriptions received

116 054 090 119 954 815 108 319 148

OTHER INCOME 11 205 372 6 209 964 7 233 378

Interest received 620 196 492 000 570 409

Other 205 070 74 400 197 254

Rentals received 10 380 106 5 643 564 6 465 715

127 259 462 126 164 779 115 552 526

EXPENDITURE 127 221 821 125 470 057 115 524 923

Accounting fees 381 991 - -

Advertising 152 408 60 000 232 278

Auditors' remuneration 263 576 276 000 260 500

AGM expenses 6 380 37 471 5 728

Bank charges 393 534 982 320 1 038 424

Computer expenses 256 089 180 000 235 165

Depreciation 237 542 262 600 303 270

Exchange fees 143 866 300 000 111 858

Interest paid 121 964 120 000 118 410

Levies paid 97 021 355 96 198 284 88 245 055

Management fees and cost recoveries 18 421 515 18 421 516 17 056 958

Market securities tax and transfer fees 17 526 72 000 -13 112

Outside services 33 715 30 000 29 172

Postage 124 368 478 800 396 414

Printing and stationery 477 771 332 666 1 226 159

Rentals paid 8 417 853 7 026 000 5 674 699

Reservations incentive fees 80 675 100 800 40 460

Telephone 523 586 411 600 444 863

Travelling and accommodation 146 107 180 000 118 622

NET SURPLUS BEFORE TAXATION 37 641 694 722 27 603

Less: Income tax 10 539 100 000 7 729

NET SURPLUS FOR THE YEAR 27 102 594 722 19 874


31 December 2016


Notes to the Financial Statements for the

Year Ended 31 December 2016 - continued

ANALYSIS OF HOLIDAY ACCOMMODATION - RESORTS/WEEKS OWNED

The majority of accommodation is acquired by purchasing shares in various share block companies.

The exceptions are:

# - where Dream Vacation Club has freehold title to accommodation

@ - where Dream Vacation Club has sectional title to accommodation

CLOSEST TOWN 2016 2015 2014 2013 2012

NORTH COAST

Breakers Resort Umhlanga Rocks 489 486 484 458 430

Cabana Beach Umhlanga Rocks 566 558 540 503 494

Chakas Rock Chalets Chakas Rock 52 36 31 28 27

Club Ten Ballito 105 103 97 85 78

La Lucia Sands Umhlanga Rocks 40 40 42 42 42

La Rochelle St Lucia 47 47 44 42 40

Mtunzini Forest Lodge Mtunzini 47 47 47 47 47

Nibela Lake Lodge Hluhluwe 572 572 572 572 572

Perna Perna Umdloti Umdloti 229 225 214 194 187

Sobhengu Hluhluwe 268 153 148 144 127

Sodwana Bay Lodge Sodwana 32 32 23 21 19

Umhlanga Cabanas Umhlanga Rocks 103 97 83 76 43

Umhlanga Sands Umhlanga Rocks 587 558 551 512 510

Zimbali Coastal Resort Ballito 52 52 52 52 52

Other Various 127 112 103 62 60

TOTAL 3316 3118 3031 2838 2728

DRAKENSBERG

Alpine Heath - # Bergville 493 493 494 494 498

Castleburn Underberg 227 224 219 218 218

Champagne Sports Winterton 314 301 300 296 292

Drakensberg Sun Winterton 240 238 237 220 211

Midlands Saddle & Trout Mooi River 29 38 36 36 36

Qwantani Harrismith 34 53 53 53 53

Kiara Lodge Clarens 335 335 0 0 0

Other Various 37 36 56 46 45

TOTAL 1709 1718 1395 1363 1353

MPUMALANGA

Burchell's Bush Lodge Kruger Park 198 191 174 157 146

Doornkop Fish & Wildlife - # Carolina 312 312 312 312 312

Jackalberry Ridge Marloth Park 522 505 503 505 506

Jackalberry Ridge - Campsite Marloth Park 104 104 0 0 0

Kruger Park Lodge Hazyview 197 196 192 190 156

Millstream Dullstroom 15 11 11 10 9

Mount Sheba Pilgrims Rest 159 155 150 141 129

Pinelake Lifestyle Resort White River 67 66 61 59 60

Sabie River Sun Hazyview 150 147 141 135 140

Sanbonani Spa Hazyview 114 114 114 60 55

Waterberry Hill Hazyview 5 31 29 29 27

Mjejane Bush Camp Malelane 71 1 32 49 0


TOTAL 1995 1921 1806 1740 1605


31 December 2016






The exceptions are:



CLOSEST TOWN 2016 2015 2014 2013 2012

NORTHWEST PROVINCE

Bakubung Sun City 208 206 202 192 183

Dikhololo Brits 46 46 39 37 36

Kwa Maritane Sun City 100 98 96 90 86

Mabalingwe Bela-Bela 332 325 320 301 289

Mabula Game Lodge Bela-Bela 473 419 342 279 190

Manyane Resort Sun City 57 57 57 57 56

Magalies Park Hartebeespoort Dam 138 134 129 122 120

Mount Amanzi Hartebeespoort Dam 42 42 41 35 32

Seasons Sport & Spa Hartebeespoort Dam 208 208 208 0 0

Sun City Vacation Club Sun City 23 23 24 24 21

The Kingdom Sun City 371 371 424 424 0


TOTAL 2030 1959 1910 1588 1039

WESTERN CAPE

Avalon Springs - @ Montagu 1017 958 937 851 844

Cape Gordonia Strand 2 2 2 2 2

Club Mykonos - @ Langebaan 892 891 877 883 876

Langezandt Fisherman's Village - # Struisbaai 260 260 260 260 208

Piekenierskloof - # Citrusdal 832 832 832 832 832

Place on the bay Camps bay 0 2 2 0 0

Port Owen Marina Velddrif 19 19 19 33 33

Stonehill River Lodge Swellendam 572 572 572 572 572


TOTAL 3602 3544 3509 3441 3375

CAPE TOWN

Strand Pavillion The Strand 198 194 147 119 97

The Peninsula Cape Town 1960 1878 1831 1756 1764

The Riviera Sea Point Cape Town 65 64 64 63 61

TOTAL 2223 2136 2042 1938 1922

GARDEN ROUTE AND EASTERN CAPE

Beacon Isle Plettenberg Bay 181 181 178 179 172

Brenton Park - # Knysna 104 104 104 104 104

Brookes Hill - # Port Elizabeth 129 127 127 115 110

Castleton - # Plettenberg Bay 260 260 260 260 260

Fish River Sun Near Port Alfred 0 0 0 0 0

Hartenbos Lagoon Resort Hartenbos 490 466 466 466 480

Hermanus Beach Club - # Hermanus 146 145 145 145 139

Lagoon Heads - # Knysna 0 52 52 52 52

Oaklands on the Knoll - # Knysna 312 312 312 312 312

Perna Perna Mossel Bay Mossel Bay 40 40 40 40 40


31 December 2016






The exceptions are:



CLOSEST TOWN 2016 2015 2014 2013 2012

GARDEN ROUTE AND EASTERN CAPE (Continued)

Pine Lake Marina Sedgefield 17 17 17 17 17

Port St Francis - # St. Francis Bay 104 104 104 104 104

Royal Wharf Cape Town 0 0 0 3 3

Seamoles Plettenberg Bay 52 52 52 52 52

Sunshine Bay Beach Club Jeffreys Bay 88 87 87 84 83

Wilderness Dunes Wilderness 249 248 248 244 244


TOTAL 2237 2274 2270 2251 2243

SOUTH COAST

Caribbean Estates - # Port Edward 260 260 260 260 260

Glenmore Sands Glenmore 179 177 176 175 174

La Cote A'zur - @ Margate 330 328 299 289 255

Laguna Le Crete - # Uvongo 0 52 156 208 208

Mont Blanc - # Margate 0 0 0 52 52

Ramsgate Beach Club Ramsgate 0 0 42 42 42

San Lameer - # Near Margate 156 156 156 156 156

Suntide Hotel Margate Margate 35 33 32 31 30

St Michael Sands St Michaels 155 150 140 122 106

Other Various 233 202 182 121 107

TOTAL 1348 1358 1443 1456 1390

DURBAN

10 South Durban 2 31 30 36 34

Durban Spa - @ Durban 105 30 29 29 29

Palace Durban 3 47 47 47 47

Silversands 1, 2, 3 Durban 222 219 217 182 162

Other Durban 0 0 0 4 17

TOTAL 332 327 323 298 289

MOZAMBIQUE

Archipelago Sun Vilancoulos 66 66 66 66 66

Bilene Club Lodge Bilene 210 208 208 208 208

Paradise View Xai Xai 156 156 156 156 156

TOTAL 432 430 430 430 430

GAUTENG

Waterfront Guest House - # Randburg 312 312 312 312 312

Mount Savannah - # Sterkfontein 208 208 208 208 208

TOTAL 520 520 520 520 520

INTERNATIONAL

Overseas Various 0 27 25 19 28

GRAND TOTAL 19744 19332 18704 17882 16922


31 December 2016


Draft Minutes of Annual General Meeting

DRAFT MINUTES OF THE DREAM VACATION CLUB,

HELD AT THE BRYANSTON COUNTRY CLUB

ON 29th November 2016 AT 17:00

Present: R.W. Dickson D.I. Gordon Members as per attendance register Staff of Leisure Options (Pty) Ltd & Dream Vacation Club Notice of Meeting:

The Chairman welcomed all attendees to the meeting. Proper notice had been given and a quorum

being present, the Chairman declared the meeting duly constituted.

Apologies: Apologies were received from F.J. Swanepoel (Trustee), the Auditors representative and Members’ apologies were listed and noted. Proxies were received and recorded. Approval of the Minutes from the previous Annual General Meeting held on the 29th July 2015: There were no comments, amendments or objections received to the previous Minutes, they were proposed, seconded and accepted as a true record of the meeting. These Minutes are available on the Dream Vacation Club Website. Receive a report from the Chairman of the Board of Trustees: The Chairman informed members present at the meeting that the Annual Financial Statements for 2015 were included in the report, that was handed out at the meeting, starting from pages 12 to 24. The Chairman then gave an overview of the Trustees report that included:

The nature of our business;

Review of Activities;

The re-branding of the Group to Dream Hotels & Resorts;

A rundown of the acquisition of The Vic 1906 Hotel in Montagu;

Short update on happenings at Piekenierskloof Mountain Resort and Mjejane Bush Camp over the past year;

The Chairman announced the re-launch of Finfoot Lake Reserve ;

Reported that Sandton Sales (Pty) Ltd has taken over as developer and manager of Bilene Lodge, Mozambique;

Chicuanga Resort (formerly Paradise View) re-opened in December 2014 and is available to Club members;

An update on the Le Franschhoek Hotel in Franschhoek, initially offered to our platinum members;

The opening of the Strolla restaurant at The Peninsula All-Suite Hotel in December 2015;

The Chairman reported that demand still remains very high at Avalon Springs in Montagu;

Upgrades at the Blue Marlin Hotel in Scottburgh have been greatly rewarded;

6 new units have been bought and built at Kiara Lodge in Clarens for club members to utilise;


31 December 2016



The Chairman informed that our Member Services department had another very busy year,

maintaining a service level of 90%;

The Chairman retouched on the subject of overcrowding of accommodation;

The Chairman informed that the Club’s affairs are managed by Dream Hotels & Resorts, which includes arranging of members holidays, collection of annual subscriptions, levy payment to various resorts, property management and normal daily affairs;

The Club’s financial affairs were handled well this year, reporting a sufficient enough surplus, making allowance for future holiday needs;

The Chairman reported substantial investment into IT and online systems in 2016;

The Chairman informed that the Club has no formal agreement with any exchange organisation, but has arrangements with RCI, Dial-an-exchange, Diamond Exchange and Interval International via Sunswop. The charge being either a fee payment or a week-for-week exchange. All hotel facilities offered by Dream Hotels & Resorts are available to Dream Vacation Club members using their points;

The Chairman mentioned those resorts that received awards at the 2016 RCI Annual Awards evening:

Gold Crown Resorts Jackalberry Ridge Piekenierskloof Mountain Resort The Peninsula All – Suite Hotel Burchell’s Bush Lodge Silver Crown Resorts Avalon Springs Blue Marlin Hotel Nibela Lake Lodge Sobhengu Lodge

The Chairman offered his thanks and appreciation to all staff involved with the Club for their hard work and dedication during the year.

The Chairman also added to his report that Mr Mahomed from the National Empowerment Fund (NEF) was present at the meeting and informed that we are currently in negotiations with the NEF to enter into partnership with them, the community and ourselves to finalise a deal in order to add the Tala Collection, situated just outside Pietermaritzburg, to the Dream Vacation Club portfolio. This deal should be finalised within the next month to six weeks. The Chairman answered questions from members regarding points usage and levy payments. The Chairman also commented on questions regarding the newly introduced Senior Membership Subscription option, where club members of 65 and over qualify for a 50% reduction in subscription fees with limited usage of the DVC Portfolio. A letter explaining the new option, with a list of 18 resorts that senior members on this option have access to, was sent out to members who were interested on the 25th November 2016. Consider the Audited Financial Statements for the year ended 31st December 2015 The Chairman enquired from Mr C. Hutton whether his queries had been addressed, he replied they had. The Bank Charges queries is being attended to. The Annual Financial Statements were proposed as correct, seconded by Mr C. Hutton and accepted.


31 December 2016



Appointment of Auditors and approval of Auditor remuneration The Chairman proposed to keep the current Auditors, with the strong intention of maintaining their current fee status. Election of Trustees In terms of the constitution, the Club requires a minimum of 3 trustees; the current trustees offered themselves up for re-election. During the meeting Mr C. Hutton, Mr I. Demirtas and Mrs M. Gopal offered their willingness to become trustees of the Club, which was accepted. The Chairman welcomed them to the Board. Any other Business The Chairman opened the floor for any other business: A request for more international stock was put to the Chairman, to which he explained that the Rand is currently trading too low for this to be viable. The Chairman informed that even our Zimbabwean stock is too expensive at $500 per night, which calculates to over R6 000. A complaint about how Mabula handles the game drives and levies was put to the Chairman. They are currently offering 4 game drives per occupant and levies are too expensive. The Chairman agreed with this and mentioned that becoming a member on the Mabula Board would be an opportunity to rectify the issue. Currently we have no members on that Board. The Chairman thanked everyone for attending and there being no further business closed the meeting at 18:30. Read and approved on this ________ day of __________ 2017. ____________________ CHAIRMAN

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