provincial government of south africa - together for rural ......in south africa, but also the...

Together for Rural and Economic Development

Casidra is an implementing Agency for the Provincial Department of Agriculture in the Western CapeBETTER

Submitting the Annual Report to the Executive Authority,Provincial Treasury and the Auditor-General

Through our commitment to integrated reporting, Casidra aims to provide stakeholders with a balanced view of the company’sperformance. Casidra’s 2012/13 integrated annual report consists of two sections, namely:

Annual ReportComprising the following: General Information, Performance Information, Governance, Human Resources Management and Annual Financial Information.

Detailed Annual Financial StatementsComprising the following: Statement of Directors’ Responsibilities, Report of the Independent Auditors, Directors’ Report, Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, Notes to the Financial Statements and the detailed Statement of Comprehensive Income.

Afrikaans and Xhosa text copies of this Annual Report are available on the Casidra website.Afrikaans- en Xhosa-tekskopieë van hierdie Jaarverslag is beskikbaar op die Casidra webblad.

Lencazelo iyafumaneka ngolwimi lwesiBhulu nangesiXhosa kwi nxiwa lophinyophinyo Casidra website.

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Mr HG van RensburgMinister of Agriculture and Rural Development

I have the honour of submitting the Annual Report ofCasidra SOC Limited for the period 1 April 2012 to 31 March 2013.

Adv GA Oliver22 August 2013

TABLE OF CONTENTS

PART A: GENERAL INFORMATION PUBLIC ENTITY’S GENERAL INFORMATION LIST OF ABBREVIATIONS/ACRONYMSSTRATEGIC OVERVIEWLEGISLATIVE AND OTHER MANDATESORGANISATIONAL STRUCTUREFOREWORD BY THE CHAIRPERSONCHIEF EXECUTIVE OFFICER’S OVERVIEW

PART B: PERFORMANCE INFORMATION STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATIONAUDITOR’S REPORT: PREDETERMINED OBJECTIVES OVERVIEW OF PUBLIC ENTITY’S PERFORMANCESTRATEGIC OUTCOME ORIENTED GOALSPERFORMANCE INFORMATION BY PROGRAMMESUMMARY OF FINANCIAL INFORMATION

PART C: GOVERNANCE INTRODUCTIONCOMPLIANCE WITH THE KING REPORTBOARD OF DIRECTORSCASIDRA BOARD CHARTERBOARD APPOINTMENTSATTENDANCE AT BOARD MEETINGSBOARD REMUNERATIONBOARD PERFORMANCE ASSESSMENTSHARE DEALINGSBOARD COMMITTEESCOMPANY SECRETARYGOING CONCERNINTERNAL CONTROLRISK MANAGEMENTMATERIALITYFRAUD PREVENTION AND FRAUD LINECONTRACTUAL OBLIGATIONS AND LEGAL ACTIONSBROAD-BASED BLACK ECONOMIC EMPOWERMENTINTERNAL AUDIT FUNCTIONETHICSBOARD MEMBERS PROFILESAUDIT AND RISK COMMITTEE

PART D: HUMAN RESOURCE MANAGEMENT INTRODUCTIONHUMAN RESOURCE OVERSIGHT STATISTICS

PART E: FINANCIAL INFORMATION STATEMENT OF RESPONSIBILITYREPORT OF THE EXTERNAL AUDITORDIRECTORS REPORTANNUAL FINANCIAL STATEMENTS

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REGISTERED NAME: Casidra SOC Limited

REGISTRATION NUMBER: 1973/006186/07

PHYSICAL ADDRESS: 22 Louws Avenue Southern Paarl 7646

POSTAL ADDRESS: P.O. Box 660 Southern Paarl 7624

TELEPHONE NUMBER/S: 021 863 5000

FAX NUMBER: 021 863 1055

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.casidra.co.za

EXTERNAL AUDITORS: PricewaterhouseCoopers

BANKERS: ABSA

COMPANY SECRETARY: FJ van Zyl

PART A: GENERAL INFORMATIONPUBLIC ENTITY’S GENERAL INFORMATION

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CASIDRA Cape Agency for Sustainable Integrated Development in Rural AreasCASP Comprehensive Agricultural Support ProgrammeCEO ChiefExecutiveOfficerCPAC Commodity Project Allocation CommitteeCRDP Comprehensive Rural Development ProgrammeDAFF Department of Agriculture, Fisheries and ForestryDEDAT Department of Economic Development and TourismDRDLR Department of Rural Development and Land ReformEDP Economic Development PartnershipEE Employment EquityFET Further Education and TrainingHR Human ResourcesIDP Integrated Development PlanLED Local Economic DevelopmentLTD Limited LARP Land and Agrarian Reform ProgrammeMoA Memorandum of AgreementNGO Non-Governmental OrganisationNO National OutcomesPFMA Public Finance Management Act PSO Provincial Strategic ObjectivePwC PricewaterhouseCoopersRED Door Real Enterprise DevelopmentSOC State Owned CompanyWCDoA Western Cape Department of Agriculture

PART A: GENERAL INFORMATIONLIST OF ABBREVIATIONS AND ACRONYMS

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Vision

To be the leading partner for development in resource poor communities.

Mission

To create opportunities for growth and development, to integrate service delivery for maximum impact, to mainstream sustainability and optimize resource use and to promote social cohesion and poverty alleviation in support of Provincial Strategic Objectives in rural areas through:

Values

Management and staff have committed to the following in their work environment:

Strategic Outcome Orientated Goals

Strategic Outcome Goal 1

Assist the Provincial Department of Agriculture to ensure that at least 60% of all agricultural land reform projects in theProvincearesuccessfuloverthenextfiveyears.


Support the Department of Agriculture in socio-economic development initiatives in selected areas, to create vibrant, sustainable rural communities.


Give support for local economic development initiatives in rural areas in order to facilitate an enabling environment, economic growth and job creation.


Develop market and implement a more secure institutional funding model.


Repackage the service deliverables, considering the following:

PART A: GENERAL INFORMATIONSTRATEGIC OVERVIEW

Efficient management of projects aimed at agricultural development and land reform;

Efficient management of projects based on socio- economic needs and aimed at poverty alleviation;

Efficient management of projects aimed at creating an enabling environment for business development and job creation;

Transparent and effective governance.

Goal orientation – We strive to realise the company’s mission and to achieve agreed goals.

Focus on success/ excellence - Positive thinking, creativity and innovation form part of our aspiration to succeed.

Business like approach – Professionalism in all we do.

Return on investment – We add value greater than the cost of activities.

Responsibility – We believe in shared and personal responsibility and accountability.

Integrity - Ethical behaviour, coupled with open and honest communication, reliability and credibility, is our lifestyle.

Diversity - We value diversity, respect each other’s differences and aim to work constructively as one team.

People-orientation - Respect for the individual, co-operation and empathy are part of our daily work ethic.

Maintain and expand project management capability as implementing agent in general, and with specific reference to the CRDP, agriculture and land reform.

Develop a capacity as implementing agent for local economic initiatives in general by offering project management services on a cost recovery basis.

Design and roll out a supporting database on policies, programmes, service providers, business assistance resources and funding options to underpin the local economic development initiative.

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CONSTITUTIONAL MANDATES

National Constitution of South Africa (Act 108 of 1996):

POLICY MANDATES

LEGISLATIVE MANDATESStaff Matters:

Financial Matters:

Other Legislative Mandates:

Basic Conditions of Employment Act (Act 75 of 1997)Employment Equity Act (Act 55 of 1998)Labour Relations Act (Act 66 of 1995)Occupational Health and Safety Act (Act 85 of 1993)Pension Funds Act (Act 24 of 1956)Public Holidays Act (Act 6 of 1994)Skills Development Act (Act 97 of 1998)Skills Development Levies Act (Act 9 of 1999)Tobacco Products Control Act (Act 83 of 1993)

Companies ActIncome Tax Act of 1962Preferential Procurement Policy Framework Act (Act 5 of 2000)Public Finance Management Act (Act 1 of 1999)

Broad-Based Black Economic Empowerment Act(Act 53 of 2003) Companies ActConservation of Agricultural Resources Act(Act 43 of 1983)Consumer Protection Act (Act 68 of 2008)National Credit Act (Act 34 of 2005)Promotion of Access to Information Act (Act 2 of 2000)Subdivision of Agricultural Land Act (Act 70 of 1970)The Regulation of Interception of Communications and Provisions of Communication-related Information Act (Act 70 of 2002)

National outcomes 4, 5, 6, 7 and 10Provincial Strategic Objectives 1, 7, 8, 9 and 10Casidra Cabinet mandate: “Agricultural and Economic Development within a Rural and Land Reform context”Land and Agrarian Reform Programme (LARP)Integrated Food Security and Nutrition StrategyComprehensive Rural Development Programme (CRDP)Provincial Growth and Development StrategyProvincial Spatial Development StrategyIntegrated Development Plans of MunicipalitiesComprehensive Agricultural Support Programme (CASP)Integrated Food Security and Nutrition ProgrammeIntegrated Food Security StrategyZero Hunger

AgricultureRegional Planning and DevelopmentSoil conservationTourismTradeRural Development

Provincial planning.Functional areas of exclusive Provincial Legislative

Functional areas of concurrent National and Provincial legislative competence.

LEGISLATIVE AND OTHER MANDATES

PART A: GENERAL INFORMATIONSTRATEGIC OVERVIEW

Reconciling Performance Targets with the Budget Explanations of variances from amounts budgeted

PER PROGRAMME Budget2012/13

RevisedExpenditure

2012/13

ActualExpenditure

2012/13Variance %

Progamme 1: Corporate Services 19 898 941 17 265 479 16 599 909 665 570 3.85%

Progamme 2: Agriculture and Land Reform 5 508 753 8 481 932 6 473 371 2 008 561 72.00%

Progamme 3: Rural Development and Poverty Alleviation 2 363 380 119 587 33 487 86 100 23.68%

27 771 074 25 866 998 23 106 767 2 760 231 10.67%

PER ECONOMIC CLASSIFICATION Budget2012/13

RevisedExpenditure

2012/13

ActualExpenditure

2012/13Variance %

Salaries and Wages 17 025 028 18 311 413 15 668 367 2 643 046 14.43%

Goods and Services 9 963 946 6 958 865 9 767 965 190 900 2.74%

Capital Assets 782 100 596 720 670 435 (73 715) -12.35%

27 771 074 25 866 998 23 106 767 2 760 231 10.67%

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PART A: GENERAL INFORMATIONORGANISATIONAL STRUCTURE

Minister of Agriculture andRural Development - Western Cape

Chairperson

Vice Chairperson

Chief Executive Officer

Chief Financial Officer Chief Development Officer Chief Operations Officer

Minister HG van Rensburg

Adv. Gary Oliver

Prof. Julian Smith

Stefan Conradie

Freek van Zyl Thembi Mlonyeni Kobus Oosthuizen

Gugu Ntuli Prof. Estian Calitz Jannie Roos

AccountantElize van Deventer

Manager: Economic Development

Juan de LoraAssistant Operations

ManagerRegional Manager:

GeorgeHuman Resources

ManagerPublic Relations /

Communications Manager

Cindy Magobiana Johan BronkhorstMarika KriegExperience Matshediso

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PART A: GENERAL INFORMATIONSTATEMENT BY THE EXECUTIVE AUTHORITY

Casidra is emerging from an uncertain time into a new and exciting time period. Stability has been brought to Casidra through the fact that it will now be the dedicated implementation agent for the Western Cape Department of Agriculture projects. Casidra is now positioned to focus on the work at hand, and there is a lot to be done.

It is absolutely essential that the agricultural landscape in South Africa, but also the Western Cape, transform. South Africa’s attempt at redress and transformation in terms of land and agriculture has not been successful up until now.

The Western Cape Government has set itself ambitious targets of achieving at least 60% success with all empowerment projects in the agricultural sector. This success is in most cases directly linked to the level and quality of support provided during the initial phases of a newly established venture.

I am; therefore; pleased to note that Casidra is gearing itself to be able to meet the present and future challenges with its “Prepare for success” strategic thinking. I am confident that it is exactly this type of fresh and modern thinking which will secure Casidra’s success on the road ahead.

I wish Casidra’s management, together with all the staff, success with the implementation of its new strategies and implementation plans for this financial year. It is my belief that your success will be reflected in successful and sustainable agricultural and rural development projects.

HG van RensburgMinister of Agriculture and Rural Development:Western Cape

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Introduction

The 2012/13 financial year ended on a positive note for Casidra with the appointment of a new Chief Executive Officer (CEO). I am proud that the Company is entering a new growth phase and that the obstacles that impeded such growth have largely been removed. The Board of Directors has taken note of a new spirit of togetherness among Casidra’s staff and a renewed commitment to hard work.

High level overview of the public entity’s strategy and the performance of the public entity in its respective sector

The past financial year has been marked by stability and the first signs of future growth. The Western Cape Department of Agriculture (WCDoA) has contributed positively to Casidra taking a clear direction through the implementation of a new institutional arrangement. Most importantly, WCDoA has welcomed the appointment of our new CEO, who had previously worked for them as a Chief Director: Rural Development. WCDoA has also increased the number of its projects that are managed by Casidra and we intend to continue serving them with project management excellence.

Strategic relationships

Casidra continues to enhance its strategic relationships at high level, particularly with the Executive Authority and various Departments within the Western Cape Provincial Government to ensure that our contribution as Casidra towards the Growth Development Plan (GDP) gets expanded and enjoys public respect and confidence. Casidra’s mandate, vision and mission have not changed. Casidra has revisited its strategic objectives to ensure that they are aligned with the Provincial Strategic Objectives (PSO’s) as well as National Outcomes (NO’s). The five-year Strategic Plan for 2012 to 2016 and the 2012/2013 Corporate Plan were updated and published. I am proud to say that all the targets that were set, were achieved.

Despite the end of the RED Initiative programmes of the Department of Economic Development and Tourism (DEDAT) that were built and managed by Casidra, DEDAT still required Casidra’s assistance in rolling out its Economic Development Growth Fund. Casidra, for its part, was grateful for the opportunity to so assist and for DEDAT’s faith in Casidra’s successful implementation of the project. Casidra will continue to nurture the relationship that it has built with DEDAT over several years and will welcome any opportunity to assist DEDAT in the future.

PART A: GENERAL INFORMATIONFOREWORD BY THE CHAIRPERSON

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Challenges faced by Board

I can confidently say that the Board was not confronted with any major challenges during the past financial year other than the search for the best candidate for appointment as CEO. The post of CEO had been vacant for some time but the Board was very grateful to have had the services of Mr Carel du Preez as interim CEO for 18 months. Mr Du Preez is a very experienced and able manager and the Board extends its heartfelt thanks to him for a job well done and wishes him the very best for the future.

The recent labour unrest in the Western Cape agricultural sector also impacted on Casidra’s operations in the past financial year. Casidra was confronted with illegal strikes experienced at Anhalt, one of three farms managed by Casidra on behalf of the Provincial Government. The Management responded properly to the strikes and the situation is being monitored on an ongoing basis with appropriate actions taken by the Management when necessary. Casidra has also implemented the minimum wage determination of the Minister of Labour on all of the farms that it manages.

The year ahead

As a Board we are confident that the new financial year will be a great year with new exciting new developments and projects. The Board has faith in the CEO and the Management team, as well as in the whole body of Casidra’s staff at its head office, regional office and in the farming and other projects. We have confidence in their commitment to take the Company forward and to engage in positive initiatives to change the lives of people in rural communities in the Western Cape for the better. The Board will continue to support all such initiatives and is heartened by Casidra’s new major role in various programmes of National and Provincial Departments.

Acknowledgements /Appreciation

I would like to extend my sincere appreciation to all my colleagues on the Board, all highly committed and highly skilled people. I am pleased to also have this opportunity to express my gratitude and appreciation to the Executive Authority, Provincial Minister Gerrit van Rensburg, the various Heads of Provincial Departments in the Western Cape, particularly the head of our ‘Mother Department’, WCDoA, Ms Joyene Isaacs and her entire Senior Management team. The heartfelt thanks of the Board is also extended to the Casidra Management team and the Casidra staff for another year of sustained hard work. Let us continue to join hands and work together to achieve the goal indicated by the motto of the Western Cape: ‘Better Together.’

Conclusion

Lastly, I thank all our stakeholders for showing a renewed and enhanced interest in Casidra and the services that it can provide. I urge all potential new clients in the National, Provincial and Local Government spheres, as well as in the private sector and in non-governmental organisations, to engage with Casidra and utilise its professional project management services. In particular I invite all municipalities in the Western Cape to engage with Casidra regarding the development and implementation of their Integrated Development Plans (IDP’S). Casidra is eager to develop partnerships with them and to assist them to make a difference in the lives of resource poor communities.

Casidra’s mandate remains ‘agricultural and economic development within a rural and land reform context’ and Casidra will continue to prove itself as the service provider of choice for the delivery of development services in rural and semi-urban areas.

Adv. GA OliverChairperson22 August 2013

PART A: GENERAL INFORMATIONFOREWORD BY THE CHAIRPERSON

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PART A: GENERAL INFORMATIONCHIEF EXECUTIVE OFFICER’S OVERVIEW

After years of facing uncertain times in terms of its mandate and core funders, I truly believe that Casidra has now entered an era of stability and growth in the financial year that ended on 31 March 2013.

I am very privileged to have been appointed as Casidra’s new Chief Executive Officer and am very excited about the future of this organisation. Since I started in November 2012, I have been very impressed by the people, the potential and work ethic of the organisation. I am fully aware of the responsibility I have to steer the organisation in a way that will set us on course to deliver project management excellence in every way and to become the leading partner for socio - economic development of rural areas in the Western Cape and beyond our provincial borders.

Casidra has found a long-term partner and institutional funder in the WCDoA with a clear mandate of Agricultural and Socio-Economic Development in a Rural and Land Reform context. Casidra is now well positioned as the implementing agency of the WCDoA with the added ability to provide project management services to all government entities as well the private sector.

Casidra currently plays a major role in the implementation of the CASP funded projects of the WCDoA that supports new farmer development in the Western Cape. The establishment of the Rural Co-ordination Programme at the WCDoA in 2010 has strengthened the socio-economic development mandate of Casidra in rural areas.

The past financial year has seen the establishment of a Development unit in Casidra to specifically drive the socio-economic mandate of the organisation. This unit will be responsible for providing business development support to the Comprehensive Rural Development Programme in 15 rural nodes of the Western Cape driven by the WCDoA.

I am also glad to say that Casidra was able to retain its relationship with the DEDAT and will continue to project manage the LED Growth Fund on their behalf with further potential projects in the pipeline.

With 373 individual projects with a total budget of R223 million under its management at the end of the financial year ending 31 March 2013, Casidra understands its responsibility and has experience in alleviating poverty by playing an active role in facilitating economic growth and job creation in rural areas through its project management skills.

In the 2013/14 financial year, Casidra will be focused on ensuring that all our actions underpin the building of our brand that is defined by project management excellence. The strength of the brand will be built on four pillars, namely: the product (project management), the organisational culture, client relationships and stakeholder partnerships.

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PART A: GENERAL INFORMATIONCHIEF EXECUTIVE OFFICER’S OVERVIEW

The Product (Project Management) – Casidra has made changes to its organisational structure with a flatter more modern structure that has been implemented to ensure faster decision-making and implementation. Employees have been empowered to develop their leadership and decision-making ability at all levels of the organisation, which is aimed at putting a larger focus on service delivery.

The company is investing in project management software and technology to enhance the ability of project managers to make decisions at project sites while on the road and to enhance the reporting ability and turnaround time of the Casidra project management system. The system, which is expected to be operational by October 2013, will also enable clients to monitor progress on their own projects by logging onto the Casidra project management system via the internet.

The Organisational culture – Casidra is placing a big emphasis on teamwork internally and service delivery externally. For this reason, the whole organisation participated in a three-day value training exercise to enhance communication, understanding and mutual respect between the different business units and between employees in the organisation. A better understanding of the actions that stimulate a culture of teamwork will lead to better service delivery to our clients. Implementation of these actions has already started in the past financial year and will continue in the 2013/14 financial year.

Client relationships – To date Casidra has not had a very proactive approach in terms of marketing its services. This will change in the 2013/14 financial year, as a targeted marketing approach will be followed where organisations and institutions will be identified and targeted through various communication channels with pre-identified project management services. Every employee now has an understanding that they are an ambassador of the brand Casidra and every interaction with a client or potential client exposes them to the brand Casidra.

Stakeholder partnerships – Casidra is a public entity and consistently in the public eye. We would like to make all stakeholders interested in our organisation feel part of the organisation. We are in the process of developing a targeted communications strategy to keep stakeholders well informed and up to date with all the relevant project information, events and progress in the organisation.

I would like to extend my sincere thanks to the Chairperson of the Board and the rest of the Board of Directors for their direction and affording me the opportunity to lead Casidra. I would also like to express my appreciation to the Provincial Minister of Agriculture and Rural Development, his Head of Department and senior officials of the WCDoA for their input and strong leadership. A big thank you to my Management Team for their hard work and making my first five months helm a great experience.

As a CEO I am very proud to be associated with every member of the Casidra staff. The organisation is full of very talented individuals and as a team we look forward to a very exciting 2013/14 financial year. To our current and future clients our message is simple “Your success is our success”.

SJ ConradieChief Executive Officer 22 August 2013

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PART B: PERFORMANCE INFORMATIONSTATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION

Adv. GA OliverChairperson 22 August 2013

SJ ConradieChief Executive Officer22 August 2013

STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION

AUDITOR’S REPORT: PREDETERMINED OBJECTIVES

In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indictors and targets as per the strategic and annual performance plan of the public entity for the financial year ended 31 March 2013.

The Casidra SOC Limited performance information for the year ended 31 March 2013 was examined by the external auditors and the final outcome of these reports are presented below.

In accordance with the PAA and in terms of General Notice, issued in terms thereof, we report the following findings relevant to the performance against predetermined objectives, compliance with laws and regulations and internal control but not for the purpose of expressing an opinion.

Predetermined Objectives

We performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 21 to 27 of the annual report.

The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).

There were no material findings on the annual performance report concerning the usefulness and reliability of the information.

Additional Matter

Although no material findings concerning the usefulness and reliability of the performance information were identified in the annual performance report, we draw attention to the matter below.

Achievement of Planned Targets

Of the total number of planned targets, only 29 were achieved during the year under review. This represents 22% of total planned targets that were not achieved during the year under review. This was mainly due to the fact that programmes came to an earlier conclusion than planned which was decided by the Western Cape Department of Economic Development and Tourism.

Compliance with Laws and Regulations

We performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters.

We did not identify any instances of material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA.

Internal Control

We considered internal control relevant to our audit of the financial statements, the annual performance report and compliance with laws and regulations.

We did not identify any deficiencies in internal control which we considered sufficiently significant for inclusion in this report.

PricewaterhouseCoopers Inc. Director: RJ JacobsRegistered Auditor Paarl

22 August 2013

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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PART B: PERFORMANCE INFORMATIONOVERVIEW OF PUBLIC ENTITY’S PERFORMANCE

SERVICE DELIVERY ENVIRONMENT

Public awareness on service delivery standards are high and Casidra is working hard to market the role of the organisation in the project management process. Casidra is responsible for the management and implementation of identified deliverables with further operational support provided by other public entities. Finding suitably experienced service providers in the rural areas still proves to be problematic and Casidra has adopted a policy to source candidates with potential, and then through a developmental approach assist the business to fully comply. As an organisation, we are increasingly moving towards an “Integrated Rural Development” approach by leveraging existing government service offerings that already exist for maximum impact on service delivery. It is, however, not always easy, as some government departments are still operating in silos and battling with the integrated approach.

The past financial year has seen the establishment of a Development unit in Casidra to specifically drive the socio-economic mandate of the organisation. This unit will be mainly responsible for providing business development support to the Comprehensive Rural Development Programme in 15 rural nodes of the Western Cape driven by the WCDoA. Internally the two project management units at Casidra have collaborated on service delivery in a number of projects particularly towards the end of the last two quarters of the 2012/2013 year. Whilst the Operations unit has continued with implementing major infrastructural projects, the Development unit has executed the enterprise development or job-related component of these projects, particularly those with an emphasis on Extended Public Works Programme job creation.

In responding to our Strategic Outcome Goal 3, a number of engagements between Casidra and several municipalities in the rural areas have been facilitated. Lack of personnel capacity, proper planning and funding remain stumbling blocks for service delivery at rural municipalities. Service delivery products developed by Casidra to be implemented for the benefit of the communities residing in rural municipalities have been hampered by the lack of available funding for implementation.

Waaikraal and Amalienstein are farms owned by Government (Department of Public Works and Transport) managed by Casidra. The WCDoA was made responsible for the management of the farms from 1 April 2010, and the WCDoA concluded agreements with Casidra to manage the farms for a period of 5 years until 31 March 2015. The drafting of a turnaround strategy was done in 2010 as part of the agreement. The WCDoA, however, indicated that no funding for the turnaround strategies is available. This did not deter Casidra from introducing interim measures.

On Amalienstein, all fruit orchards were removed because they were unprofitable and the pack house was leased to a private entrepreneur until 31 March 2015. Subsequently, additional pastures could be established resulting in increased milk production and the dairy could be extended to 150 cows.

Although the financial prospects are much better than before 2010, the farm is still not profitable due to the relatively small extent of the dairy and high overhead costs due to the maintenance of historic buildings and infrastructure. Infrastructure and irrigation investments were also made on Waaikraal with CASP funding from the WCDoA with new ventures like essential oils, plant seed production and vegetables that have been introduced with success. The farms, unfortunately, cannot be registered for VAT due to the government ownership, which impacts negatively on profitability.

The WCDoA indicated that a high level business plan to address financing of the development needs, and the future institutional position of Amalienstein and Waaikraal with the relevant communities, must be facilitated by the Unit for Technical Assistance in Casidra. A dispute was, however, lodged by a local organisation regarding the transfer of Amalienstein to the State during 1994. The business plan can only commence once the dispute is resolved. The matter was referred to the WCDoA.

An agreement for the management of Anhalt (owned by the Department of Rural Development and Land Reform) in the Langkloof was concluded with the WCDoA until March 2013. The process to transfer the farm to a Haarlem community entity was initiated by the Department of Rural Development and Land Reform during 2010. The process was prolonged by the transformation committee established in Haarlem. The committee, however, was re-established in 2012. Casidra urged the committee to expedite the process and offered assistance. It was decided to extend the management agreement between Casidra and the WCDoA for a period of only one year until 31 March 2014, awaiting the transfer, which the WCDoA agreed to. The Anhalt farm was also influenced by the farmworker labour unrest that started in the Western Cape towards the end of 2012. Illegal worker strikes took place on Anhalt in December 2012 and January 2013. Following an information dissemination process regarding legal strike procedures, disciplinary steps had to be taken when these steps were again ignored.

With a clear mandate of Agricultural and Socio-Economic Development in a Rural and Land Reform context. Casidra is now well positioned as the implementing agency of the WCDoA with the added ability to provide project management services to all government entities as well the private sector. Currently the organisation plays a major role in the implementation of the CASP funded projects of the WCDoA that supports new farmer development in the Western Cape. The establishment of the Rural Co-ordination programme at the WCDoA in 2010 has strengthened the socio-economic development mandate of Casidra in rural areas. It is also fortunate that Casidra was able to retain its relationship with the DEDAT and will continue to project manage the LED Growth Fund on their behalf with further potential projects already in the pipeline.

Whilst the last two quarters of the 2012/13 year were focused on nurturing and improving all our internal resources for excellence in forthcoming years, the first two quarters of the year were focused on the finalisation of the closure of all Enterprise Development projects of DEDAT under the management of Casidra.

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From the 10 projects implemented and managed by Casidra, a total combined balance of R18 million was left in the accounts of these projects. From that amount received, a total amount of R2 019 000 was used to finance indirect costs from expenses occurred during the closing down period. The Work and Skills programme continued until November 2012 and the remaining funds worth R 366 154 were utilised for the payment of a Service Provider appointed by DEDAT to conduct an impact study on the programme.

The rest of the funds were transferred back into a bank account allocated by DEDAT to Casidra with the exception of projects that had dual funders.

ORGANISATIONAL ENVIRONMENT

The appointment of the new CEO at Casidra has brought about much needed direction and stability into the organisation. The new funding model agreed between Casidra and the WCDoA has also ensured financial sustainability. A huge emphasis was placed on updating and improving all Casidra policies to align with Casidra’s strategic intent of focusing on Project Management excellence for efficient service delivery. This process was completed in the 2012/13 financial year. With a newly developed flatter organogram and a revised and updated delegation of authority to fast track decision-making whilst minimising risks, Casidra intends to accelerate project service delivery.

As a Project Management company focused on service delivery to the public, staff is a crucial asset of Casidra. Therefore, recruitment and talent retention is at the core of Casidra’s strategy evolving towards a Project Management company defined by excellence in all aspects of service delivery. A new Casidra remunerations system was developed by management in consultation with Casidra personnel and approved by the Board of Directors for the 2012/13 financial year. The positive spin-offs from the new performance rewards system were further solidified with the Value IQ and Diversity training where personnel contributed positively towards the Casidra they envisaged to work for. Scenario planning with regard to the possible impact of organisational growth on organisational structure will also be done in the new financial year.

Succession planning for the organisation was done by the HR unit, which clearly showed that there are career development opportunities in the company for the majority of personnel. The implementation of understudies of key positions attending management meetings to build capacity and to expose these incumbents for career development purposes clearly illustrates how serious the organisation is in this regard. Filling vacant positions is also a priority at Casidra to meet the demands of future ventures. Occupational categories that have proved problematic to fill are that of engineering technicians and experienced senior agriculturalists.

Casidra has been able to recruit, attract and place three Employment Equity (EE) candidates in positions that have been previously proven difficult to be filled by suitable Employment EE candidates. The recruitment of physically challenged individuals, despite various attempts, has thus far been unsuccessful during this reporting year.

A number of the key products that complement our brand were developed during this reporting year, one of which being an integrated HR and payroll system where personnel can access personnel information from payslips, tax returns, leave balances, personnel policies and performance agreements online. This is one of the Casidra initiatives migrating to a paperless company in support of our green initiative approach. For the farms, the system has been slightly adapted so that it speaks to the employment contractual conditions of the workforce at various farms.

Casidra’s competitive advantage is vested in its ability to operate with business principles and procedures similar to a private company, but still complying with the Public Finance Management Act (PFMA) and other statutory requirements, understanding the public sector demands and challenges. The increased need for quicker service delivery and reporting has resulted in Casidra investing in a web-based integrated project management and financial system. The system will be easily accessible to all internally to view progress and status of all projects implemented and managed by Casidra. Remotely, the system will be accessible to all our funders, partners and stakeholders at a click of a button to view or draw reports regarding their funded projects. It is expectant that phase 1 of the development of the system be completed and fully effective in the second quarter of the 2013/2014 year.

A newly revamped Casidra intranet and an upgraded website with a content management system that is linked to our new project management system, is nearing completion. The installation of 32 new computers has been completed at Head Office and at the Regional Office during the reporting year. A new version of Pastel software that speaks to our new Absa Business Online version was also successfully integrated and installed and the training of all end users at Casidra has been completed.

It is no secret that most of the Business Development and Assistance opportunities are more concentrated in the Metro compared to the Rural areas. This is the prevailing environment Casidra operates in, and where support services are offered, it is very fragmented. A more consolidated approach is needed from other stakeholders and Departments to make a meaningful impact on the lives of the communities in the rural areas.

KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGESNone

13

STRATEGIC OUTCOME ORIENTED GOALS


Strategic OutcomeGoal 1

Support the Provincial Department of Agriculture to ensure that at least 60% of all agriculturallandreformprojectsintheProvincearesuccessfuloverthenextfiveyears.

Goal Statement In the new policy for the Department of Rural Development and Land Reform (DRDLR) Recapitalisation programme, published in May 2011, it is stated as a fact that most of the 6 million hectares of agricultural land transferred through the Land Reform programme, is now out of production and have failed.

One reason for this is that, in many cases, land has been allocated to large groups of beneficiaries without successful institutional arrangements to enable productive and sustainable use of the land.

A second reason is that not enough structured support was given to beneficiaries who, in most cases, have very little agricultural and management experience and skills.

A third reason is that there was a misalignment between the Comprehensive Agricultural Support Programme (CASP) and the Land Reform programme, and the support offered-did not address all the needs of new entrants in the agricultural production arena in a structured and comprehensive way.

Itisstatedthatthereisinsufficientcapacityingovernmentforfull-scaleimplementationofthese programmes.

Combining agricultural experience and knowledge with project management capabilities and efficient financial and governance systems, Casidra will continue to support the department with the disbursement of funds from the CASP. This will support emerging farmers by procurement from grant funding for physical infrastructure delivery on approved project business plans. Another initiative to support this goal is involvement in the Agricultural Production Strategy of Department of Agriculture, Fisheries and Forestry (DAFF), within the context of rural development; and tied to the objective of agrarian reform. Institutional arrangements for an integrated support strategy are based uponthecommoditiesapproach.Practicalproductspecificandmarketingexperiencearebrought together in the Commodity Project Allocation Committees (CPAC) for each of the nine commodities and used to evaluate projects for viability and to award CASP funding to applicants.

Casidra will play an integral part in the facilitation of the processes within these commodities and act as secretariat to most of them, as well as to be the implementing agent for the approved business plans.

Three government-owned farms (Department of Rural Development and Land Reform and the provincial Department of Transport and Public Works) dating back to the 1980’s as land restitution projects are being managed by Casidra on behalf of the Department of Agriculture Western Cape. Turnaround strategies already prepared will be taken forward within the framework of strategic plans, budgetary requirements and commitment by principals to conclude these as land reform projects.

Justification Within the historical context of land ownership and lack of inclusion in the agricultural sector, it is imperative to successfully execute a land reform programme. Constraints on new farmers include access to land, lack of skills and managerial expertise, lack of access to appropriate technology, lack of infrastructure and capital for provision of such infrastructure and market access. Interventions as described will be aimed at addressing these constraints.

At the same time this delivery of assistance must take place in an environment of equitable, fair and accountable business practices. Casidra, with 22 years of clean audit reports, offers that medium to government for delivery.

Links This goal is linked to:Provincial Strategic Objective 11: Creation of opportunities for growth and development in rural areas.

National Outcomes 4 and 7: Decent employment through inclusive economic growth and vibrant equitable, sustainable rural communities contributing towards food security for all.

14


Strategic OutcomeGoal 3 Give support for local economic development initiatives in rural areas in order to facilitate an

enabling environment, economic growth and job creation.

Goal Statement The Western Cape economy as a significant contributor to the national economy, emphasises the importance of government Interventions and policy to sustain and direct economic growth.

Although the agricultural sector may be the logical and sensible cornerstone of rural development, the environment for successful agricultural economic, social and environmental activity is what contributes holistically to rural development.

When considering rural development, cognisance must be taken of the actual development potential of municipal areas in order to create an environment that supports private sector investment that will create sustainable job opportunities for rural communities. Rural development cannot be the sole mandate of one department; interventions from various state agencies, parastatals and the private sector will be needed to make a significant impact. In this regard, the main components of an enabling environment for economic development initiatives must include:

Increased skills levels.Access to a full range of business development services.Market access.


Support the Department of Agriculture in socio-economic development initiatives in selected areas, to create vibrant, sustainable rural communities.

Goal Statement The Provincial Department of Agriculture is responsible for the facilitation of the Comprehensive Rural Development Programme in selected nodes in the Western Cape with the objective to create vibrant, sustainable rural communities.

Thestrategicobjectivesoftheprogrammearedefinedasfollows:

Improvement of food security through interventions at household level.

Whereas the Department will focus on the citizen-facing role in preparing the institutional environment for implementation, Casidra will focus on the implementation of identified projects by offering excellent project management services.

Justification Rural development in its broadest context is one of the top priorities of the National Government. It also features as PSO 11 as “Creating opportunities for growth and development in rural areas”.

Given the high levels of poverty in rural areas, the lack of resources and capacity of local municipalities, and the dominance of the Cape Town Metro, it is essential to have a special focus on rural areas and to facilitate holistic development. Casidra will support the department in this endeavour.

Links The programme is linked to the following National Objectives (NO’s) and PSO’s:

All provincial departments and local government authorities delivering services in a co-ordinated and cohesive way, through the establishment of interdepartmental steering committees.Institutionalisation of community organisational structures, to empower communities in termsoftheidentificationandimplementationofnewprojects.Establishment of economic, social development and infrastructure projects to facilitate economic growth.Skills training for unemployed people.Sustainable employment created for unemployed people.

Rural development in its broadest context (NO7 and PSO11)Address poverty alleviation (NO4, NO7 and PSO8)Skills development (NO5)Economic growth and development (PSO1)Economic growth and development in rural areas (PSO11)

15

Goal Statement Accessibility of business information to both small farmers and entrepreneurs in the rural areas can be a catalyst for economic growth and job creation, but the reality of the Western Cape is that the current 14 prominent business support sites are concentrated in the greater Cape Town area, compared to only one in the vast rural area.

Thestrategicobjectivesoftheprogrammearedefinedasfollows:

Casidrawill, on demand, play a projectmanagement role in any identified projects that underpins the above strategic objectives.

Justification In Minister Pravin Gordhan’s Medium-term Budget policy framework Statement (2010), he acknowledges the role that small businesses play in creating new jobs. According to the Global Entrepreneurship Monitor report (2009), South Africa ranked 35th out of 54 countries with a total entrepreneurial activity below average (11,7%).

The GEM cites a severe environmental limitation including poverty, a lack of active markets and poor access to resources as the reason for the decline.

The prevalence of small business is vital to the growth and development of the economy in a region. With economic growth goes job opportunities which will ultimately decrease the migration to already overpopulated urban areas in search of job opportunities.

Links

To assist in the facilitation of economic empowerment of emerging entrepreneurs and small businesses.

Tofacilitateawarenessofeconomicopportunitiesthroughimprovingaccesstofinancial andnon-financialinitiatives.

To assist in creating an environment that supports private sector investment through appropriate public sector planning and investment within rural communities.


PROVINCIALSTRATEGIC OBJECTIVE

NAME

1 Increasing opportunities for growth and jobs.8 Social cohesion and poverty reduction.

10 Integrating service delivery for maximum impact11 Creating opportunities for growth and development in rural areas.

Strategic OutcomeGoal 4 Develop market and implement a more secure institutional funding model.

Goal Statement The funding model for a public entity is of crucial importance for efficiency in service delivery. An entity such as Casidra is about efficient service delivery in support of governmentdepartments foraspecificpurpose. It should, therefore,beenabled tohave the necessary capacity and to be able to focus on the task at hand.

An insecure funding stream leads to lack of focus on the core business, whereas fragmentation of funding causes inefficiencies in terms of budgeting and reporting. It is, therefore, of fundamental importance to attend to problems in this regard.

Justification The institutional funding for Casidra is provided by two different departments in terms of the original mandate.

This leads to fragmentation in terms of budgeting and reporting.

Itcreatesuncertainty,because institutional funding is tied tospecificprogrammes,andwhen such programmes are scaled down, or closed, the institutional funding required to maintain Casidra as a going concern, is affected.

16



Repackage the service deliverables, considering the following:

Goal Statement Casidra’s present deliverables have been built around:

Clients have been mostly restricted to two provincial departments, namely the WCDoA and DEDAT,with deliverables to individual beneficiaries through specific programmes run bythe two departments. Because rural development is a holistic process, projects to facilitate such development will of necessity almost always call for synergy between a combination of role-players (institutional and financial).Whereas the preparatorywork (citizen-facing)for the creation of the environment conducive to implementation, will be a government role, interaction in that process with any envisaged implementing agency, is part of best practice.Inthissense,aproactiverolemustbeplayed,andforthattohappenefficiently,apresenceon the ground as part of networking can add a lot of value.This goal, therefore, stands on two legs, namely:

Justification Against the backdrop of a changing environment, as discussed in the situational analysis, it is imperative that the role of the Company within its approved mandate be revisited. Factors forcing this rethink, in order to keep Casidra focused and relevant, are as follows:

Maintain and expand project management capability as implementing agent in general, andwithspecificreferencetotheCRDP,agricultureandlandreform;Develop capacity as implementing agent for local economic initiatives in general by offering project management services on a cost recovery basis; Design and roll out a supporting database on policies, programmes, service providers, business assistance resources and funding options to underpin the local economic development initiative.

Project management capabilities;Efficientgovernancestructures;Efficientfinancialsystems;Competitive edge due to a business-oriented model; andA reactive culture in responding to needs.

Developing a more proactive business approach.Sharpening the project management capability for execution of rural development projects. This will include a proper database to facilitate project planning.

Given the existing structure and capacity of the organisation, a bigger role in land reform can be played.

Links An improved fundingmodelwill improveefficiencies in servicedelivery in support of the following NO’s and PSO’s:

NATIONALOUTCOME NAME

4 Decent employment through inclusive economic growth.5 A skilled and capable workforce to support an inclusive growth path.7 Vibrant, equitable and sustainable rural communities with food security for all.

10 Environmental assets and natural resources that are well protected and continually enhanced.

12 Anefficient,effectiveanddevelopmentorientatedpublicserviceandan empowered, fair and inclusive citizenship.

PROVINCIALSTRATEGIC OBJECTIVE

NAME

1 Increasing opportunities for growth and jobs.7 Mainstreamingsustainabilityandoptimizingresource-useefficiency.8 Social cohesion and poverty reduction.

10 Integrating service delivery for maximum impact.11 Creating opportunities for growth and development in rural areas.

17


Justification

In unpacking the Casidra mandate within the context of the demand side for services by Government, the following pointers must be taken into consideration:

It is to be expected that the EDP will not be an implementer at the coalface and the role of DEDAT is changing from implementer to “influencer”.Adding to this is the incapacity of many municipalities to implement projects as far as local economic development is concerned. Therefore, there is a real danger that a big gap is opening up as far as implementation in rural areas is concerned.

Inlookingtofillthisgap,theroledefinitionbetweengovernmentdepartments(citizen-facing)and agency (market-facing), as adopted for the EDP model, is of importance.

The rationale is, therefore, that efficient project management ability within a business- oriented model should be the focus for Casidratofulfilitsmandateunderthesechangedcircumstances.

Links This goal is tied to:

The Provincial Strategic Plan, its 12 PSO’s and specifically the initiative to establish an Economic Development Partnership (EDP).

The responsibility of the Minister of Agriculture and Rural Development for facilitating the execution of the CRDP in the Western Cape.

The recognition of Government that rural development is important enough to retain a separate focus on it.

The fact that capacity and resources for stimulating economic development and job creation and the practical implementation of projects in rural areas are generally not as abundantly available as in the urban areas.

The importance of executing government initiated projects across various programmes andtoreapthebenefitsofthewholebeingbiggerthantheconstituentparts.Thiscanalsoinclude public/private partnerships.

The inability in general to effectively implement policy and plans in order to achieve the desired outcomes.

The opportunity to utilise a business oriented entity such as Casidra to play this integrating roleinexecutingprojectsefficiently.

The importance of such a role in pursuing the two pillars for successful economic development, namely the creation of an enabling environment for business, and support for sectors and individual businesses.

NATIONALOUTCOME NAME

4 Decent employment through inclusive economic growth.5 A skilled and capable workforce to support an inclusive growth path.

7 Vibrant, equitable and sustainable rural communities with food security for all.

10 Environmental assets and natural resources that are well protected and continually enhanced.

12 Anefficient,effectiveanddevelopmentorientatedpublicserviceandan empowered, fair and inclusive citizenship.

PROVINCIAL STRATEGIC OBJECTIVE

NAME

1 Increasing opportunities for growth and jobs.7 Mainstreamingsustainabilityandoptimizingresource-useefficiency.8 Social cohesion and poverty reduction.

10 Integrating service delivery for maximum impact.11 Creating opportunities for growth and development in rural areas.

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PART B: PERFORMANCE INFORMATION4. PERFORMANCE INFORMATION BY PROGRAMME

PROGRAMME 1: CORPORATE SERVICES

The purpose of the programme is to provide leadership, strategic direction and relevant support services to the respective programmes of the Company, including the following:

PROGRAMME 2: AGRICULTURE AND LAND REFORM

Purpose:

Sub-programmes:

Strategic Objectives:

PROGRAMME PERFORMANCE

The programme works very closely with the WCDoA to respond to the achievement of the departmental strategic goals and the national outcomes and provincial strategic objectives. The focus of this programme is specifically linked to the national outcome 7 and provincial strategic objectives 1, 8 and 11, and has been detailed in the Department of Agriculture’s Annual Performance Plan.

Sub-programme 2.1: Managing Government Farms

Casidra manages and renders support to government farms (Anhalt, Amalienstein and Waaikraal) until transfer to a receiving entity. These farms were managed optimally given the adverse financial and environmental influences.

Anhalt was the only of the three farms affected by the provincial farm worker strike, which had a detrimental effect on personnel morale resulting in disciplinary procedures and cases being referred to the Commission for Conciliation, Mediation and Arbitration. The wage dispute was still not resolved at the end of the financial year despite an increase of 40% to the lowest paid long-term contract workers. The statutory increase in the minimum wage for farm workers to R105 per day (52%) on 1 March 2013 is having a huge impact on particularly Anhalt, and cuts had to be made to the capital budget as well as to the budget for casual workers to be able to submit a break-even budget for 2013/14 and to afford the increase for the long- term contract workers. In the long run, this will be detrimental to the sustainability of the farm. Although adaptions were made to increase productivity and to use less casual labour, a formal study on ways to increase productivity and cut expenses will be undertaken in 2013. The farm is a relatively small production unit with no expansion potential and suffers under ever-increasing overhead costs.

Anhalt farms with apples and pears. There are 49 ha of producing orchards and 16 ha must still come into production. A farming operation needs to adapt constantly to market needs and Casidra is identifying unprofitable orchards and replacing them with new cultivars that have a better export potential. Cost pressure is being experienced by farming operations in South Africa (input cost increasing more than inflation) and in the case of Anhalt, this is indicated by the margin per ha that has decreased with 41% in real terms since 2003 despite the new cultivars coming into production.

There is a constant strive to improve margin per hectare by improving productivity and processes as well as establishing newly developed cultivars with high income that are sought after on the export markets.

To manage Government Farms in a sustainable manner for transfer to a relevant receiving entity.To facilitate and implement Agricultural Projects for agrarian beneficiaries through Government funding.

Managing Government Farms.Farmer Support and Development.

To manage specific Government Farms (i.e. Anhalt, Amalienstein and Waaikraal) in a sustainable manner to transfer these to a relevant receiving entity.To ensure a sustainable support mechanism for new and established farmers (including land reform beneficiaries and farm workers).

Provide an internal and external communication service for the company and projects.Render an effective and efficient financial administrative service to the company and projects.Provide and maintain a secure reliable information and network infrastructure to the company and projects.Deliver an effective legal administrative service.Provide an effective human resources service to the company and projects.

PROGRAMME SUB-PROGRAMMES1. Corporate Services 1.1 Public Relations, Marketing and Communications

1.2 Finance1.3 Information Technology1.4 Legal Services 1.5 Human Resources Management

2. Agriculture and Land Reform 2.1 Managing Government Farms2.2 Farmer Support and Development

3. Rural Development and Poverty Alleviation

3.1 Rural Nodal Development3.2 Community and Household Food Security3.3 Farm Worker Development3.4 Project Management Services3.5 Further Education and Training (FET)

4. Local Economic Development 4.1 Project Management Services

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The re-establishment of orchards demand a big capital investment and is therefore a slow process. Since 2005, 31.66 ha of new orchards were established or re-planted with 5.36 ha removed and 2.9 ha re-established in 2012 alone.

The 2012/13 harvest had much better results than the previous 3 years – the latter being negatively affected by environmental factors and a stronger Rand. A Netto farm gate income of R9 561 612 was achieved (a 70% increase from 2011) and the yield increased by 48%. At an average of 50 tons/ha it was the biggest yield per hectare since 1994. One of the two exporters performed poorly and it was decided not to use them for 2013. This decision, above average environmental conditions and the weakening of the Rand against the Euro will have a positive influence on income in 2013 and it is expected that income could increase even further. The farm has built up sufficient reserves over the years and was able to finance capital improvements from the reserves in the three years with lower income. In 2012/13 cash flow was positive, but will be under pressure in the future due to the increase in labour costs. This could result in no further replacement of orchards, which will leave the farm unsustainable. Amalienstein and Waaikraal are currently unsustainable farms. The farms received funding from government, but during most years this was insufficient and almost no replacement of capital assets could be done, resulting in buildings and equipment starting to deteriorate. This is exacerbated by the fact that the farms, due to being funded by government, cannot re-claim VAT on inputs. Often operational expenses have to be cut, which later impacts on production.

Financial prospects for Amalienstein are better, since orchards were removed in 2011. Subsequently additional pastures could be established that led to an increase in milk production and the dairy could be extended to 150 cows. The planned extension would have taken until March 2014 with own progeny, but due to a donation of 30 Jersey cows by the WCDoA and the purchase of 54 Fleckvieh cross animals from them, the 150 cows’ target was already reached in March 2013.

The average milk production was 21.1 l/cow/day which was lower than the previous year, but the introduction of the smaller Jersey and Fleckvieh crosses played a role in this. On average 104 cows were in milk (an increase of 20 from the previous year), but at the end of the period the number was 135. More than 780 000 litres of milk were produced. The farm is in need of finance to replace old infrastructure, tractors and implements and to extend the irrigation system.

In the past, the financial outcome of Waaikraal depended heavily on the ostrich section. The farm sold off the old breeding flock of ostriches in 2010, in line with the turnaround strategy that indicated that the birds should be sold because of their age and specifically due to the Avian flu at that stage that halted all exports. The Avian flu also placed the demand for lucerne under pressure.

The full turnaround strategy, which has been presented, could not be funded. However, some aspects of the strategy are being implemented with funding that was made available as part of the Comprehensive Rural Development

Programme for Dysselsdorp, but this It is not enough to make the farm profitable. The developments that started with the irrigation dam that was completed in 2011 continued with infrastructure to irrigate 60 ha by means of a permanent irrigation system. The pump house was completed and permanent irrigation was installed on 44 hectares. Lucerne, seed onions, tomatoes for a drying facility in Dysselsdorp and lavender and rosemary for essential oil production were established. The establishment of geraniums for essential oil production will be done in May 2013 and vegetables will be established. Unfortunately, the market for vegetables is very small in the area. The opportunities for more value adding of Waaikraal produce in Dysselsdorp is being explored by involving all role-players, as there is additional capacity at Waaikraal to produce crops under irrigation.

If productivity of labour issues is not addressed and managed, Waaikraal could be worse off financially due to the introduction of the new ventures, which is highly labour-intensive. This is the opposite of what the intention was with the introduction of the new ventures in the first place, when a 52% increase in wages was unforeseen.

Sub-programme 2.2: Farmer Support and Development

The funding supplied from the WCDoA, our major client, for project implementation during 2012/13, stabilised at R81 million, similar to the previous years. A further R8,17 million of interest was gained on the funds due to a very careful cash flow management and investment policy, and was made available for allocation to the beneficiaries. Casidra also sourced funds from other National or Provincial Departments or agencies that have programmes to complement the CASP initiative and an additional R2,8 million worth of projects was sourced mainly from the Department of Water Affairs.

Casidra continued supporting 8 Commodity groups (Beef, Pigs, Poultry, Ostrich, Aquaculture, Vegetables, Wine and Table Grapes) with implementation and administration of their CPAC initiatives, and one new commodity (Vegetable Seed) was added during the year.

Secretarial services were supplied to a total of 52 Commodity meetings. R54,87 million was made available to the Commodity Project Allocation Committees for allocation to worthy applicants and a further R13,6 million was allocated by the Departmental Project Allocation Committee to Casidra for the implementation of projects. In total, 73 projects were approved for implementation. From this, 44 projects have started with implementation and 59 of the projects carried over from the previous year, were completed. The seasonal effect and timing of applications for assistance still influence the implementation programme to a large extent and complicates implementation scheduling at Casidra. The general trend is that allocations per project get bigger and, therefore, the number of projects becomes less with the available funding. This is as a result of a more targeted approach by the commodities to assist new farmers with more infrastructure and production inputs to reach viability in their businesses earlier. This contributes to the target of the Western Cape Department of Agriculture to reach a 60% success rate for Land Reform projects.

PART B: PERFORMANCE INFORMATIONPERFORMANCE INFORMATION BY PROGRAMME

20

PROGRAMME 2: AGRICULTURE AND LAND REFORM


Sub-programme 2.1: Government FarmsStrategic Objective Actual Achievement

2011/2012Planned Target against Actual Achievement

2012/2013

Deviation from Planned Target to Actual Achievement for

2012/2013

Comment on Deviations

Target ActualManage government farms in a sustainable manner for transfer to relevant receiving entity.

3 3 3 -

Sub-programme 2.1: Government FarmsPerformance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualNumber of individual farm plans developed for government farms. 3 3 3 -

Number of monthly farm activity plans and schedules designed and implemented. 36 36 36 -

The two farms, Anhalt and Waaikraal where most development took place, were visited as scheduled and Amalienstein just for control purposes.

Number of monthly monitoring and evaluation site visit reports. 32 30 30 -

Evaluation meetings are held on a monthly basis and addi-tional visits are done to address operational emergencies.

Number of monthly management and staff meetings on site. 29 30 36 6

More meetings were needed in the year due to intensive farm developments that took place.

Sub-Programme 2.2: Farmer Support and DevelopmentStrategic Objective Actual Achievement


2012/2013


2012/2013


Target ActualNumber of agricultural projects facilitated and implemented for agrarian beneficiaries through government funding.

91 110 102 -8

Demand driven target. The new projects that were approved were less than anticipated.

Sub-Programme 2.2 : Farmer Support and DevelopmentPerformance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualNumber of CPAC projects assisted with agricultural physical infrastructure.

33 37 24 -13

Projects were approved by the commodities very late in the year and implementation was delayed. Project applications were also bigger, which reduced the number of projects to be assisted with available funding.

Number of meetings facilitated for commodity bodies and rendering secretarial services. 44 36 52 16

CPAC meetings took place according to schedule. One new CPAC, the Seed Commodity, was created that was not planned for.

Number of standard operating procedures developed for each commodity organisation based on the CASP business plan.

1Only 2011 target

-

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Purpose:

The purpose of the programme is to provide a project management service for specific rural development projects and agricultural initiatives with the aim of improving the standard of living of people in rural areas, to holistically address the socio-economic needs of rural communities and to create employment in rural areas.

Sub-programmes:

Strategic Objectives:


The sub-programme: Project Management Services has been established to firstly capture specific agricultural support to unplanned (disasters) endeavours through the reporting period. Casidra disburses disaster funding payments to farmers in close co-operation with the WCDoA.

The sub-programme: FET Training works very closely with the WCDoA to respond to the achievement of the departmental strategic goals, national outcomes and provincial strategic objectives. The focus of this programme is specifically linked to the national outcomes 5 and 7, and provincial strategic objectives 8, 10 and 11.

Sub-programme 3.1: Rural Nodal Development

Casidra continued its partnership with the WCDoA in the implementation of the CRDP programme as identified in the development of nodes. During the reporting year, the number of active CRDP nodes has grown from only 11 nodes in the last financial year to 13 rural nodes. Projects initiated are infrastructure development to the value of R4 million.

These projects were mainly for the Waaikraal farm, to serve as a spin-off for further economic development and processing in the neighbouring Dysselsdorp area. The planting of essential oil crops at Waaikraal, initiated in 2011, was completed and a total of 9 hectares were established. Eight Council of Stakeholders were supported to set up their administrative offices and operational procedures.

To assist vulnerable communities and households with the means to produce their own food.

To provide a project management service to respond to rural agricultural programmes and initiatives.

To ensure that farmers and communities in need of skills development are capacitated and equipped with relevant skills through training and development.

Rural Nodal DevelopmentCommunity and Household Food SecurityFarm Worker DevelopmentProject Management ServicesFET Training

Sub-Programme 2.2 : Farmer Support and DevelopmentPerformance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualAdminister and co-ordinate the Technical Advisory UnitNumber of business plans reviewed.

6 30 7 -23Less business plans were reviewed than targeted in this reporting period.

Number of queries resolved.

132 80 93 13

Demand driven service. Queries have increased for short inputs and incomplete business plan reviews as measured against the previous year.

Number of new business plans developed. 3 30 1 -29 This is a demand driven service.

Only one request was received.

Number of projects implemented approved by the Department Project Allocation Committee (DPAC).

31 20 19 -1Demand driven service. Service delivered is very much on target.

Implement and maintain an integrated reporting system (AIMS). 1 1 1 -

Number of reports submittedQuarterly progress reports on all projects and commodities. 4 4 4 -

A report to confirm that projectshave commenced within 6 months.

65 57 101 44

This target is demand driven and depends on the number and timing of projects approved. The previous year’s backlog was started and a lot of the new year projects also started.

Number of projects implemented on a multi-year basis. 68 53 59 6

The backlog of projects as at the previous year end were implemented as planned.

PROGRAMME 3: RURAL DEVELOPMENT AND POVERTY ALLEVIATION

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With the establishment of a Rural Development function at the WCDoA, the support of Casidra in the Rural Areas entered a new phase whereby economic and social development support programmes were funded by the Department. A pilot project was launched to assist the newly-formed businesses in the CRDP nodes with institutional and administrative support. The additional nodes added are Leeu Gamka and Merweville in the Central Karoo. Four other nodes have been declared and at the end of March 2012, over and above the 10 active nodes with one additional satellite node for Mossel Bay to be finalised in the 2013/14 year.

Because of the widespread areas and the proximity of these nodes, additional Sub-Council of Stakeholders were added to the rural nodes as follows:

Sub-programme 3.2: Community and Household Food Security

The allocation of funding for this initiative to assist vulnerable communities to produce their own food continued to grow from the R9, 2 million in 2011 to R11, 087 million in 2012. By year-end, R9,5 million of this fund was allocated to projects. As indicated during the previous year, the initiative to formalise the allocation and approval of funds and involve and co-ordinate with the other partners in household food security in a formal structure, materialised with the formation of a Food Security CPAC. The formation of this structure and development of evaluation criteria delayed the allocation process and, due to the seasonal nature of vegetable

production, approximately one-third of the gardens could start with activities within the financial year. Most of the gardens that were not completed during the previous year were completed, and a total of 1195 gardens were assisted. Further actions to ensure sustainability and more “green” practices will be initiated in 2013/14.

Sub-programme 3.3: Farm Worker Development

The support needed from Casidra in the implementation of this programme for the WCDoA was minimal with only two projects implemented. It continues to be a major area in need of assistance and, as the farm worker strikes have indicated, a renewed emphasis will be placed on this programme in 2013/14 with more funding allocated to gather statistics in order to understand the sector better and to address the most urgent needs.

Sub-programme 3.4: Project Management Services

The application of the Disaster Management funding continued during 2012 and R24,12 million was paid to drought- and flood-affected beneficiaries. Funding remaining in the account was earmarked for bigger impact projects, and Casidra assisted with the tender processes and procurement of two service providers. These projects are not completed and construction will continue in 2013.

The implementation of the construction phase on the Stony Point project commenced during the 2012/2013 year. Casidra received the first tranche payment of R2 million for the construction phase at the end of the 2nd quarter of the 2012/2013 year. Following a detailed tender process, the construction tender was awarded to Blizzard Trading, a 100% Black Economic Empowerment-owned company.

The contractor established a site on 14 January 2013, commencing the official start date of construction. A timespan of 10 months is allocated for completion of this project. By the end of the 2012/2013, 20% of the construction phases have been completed, with 78 temporary jobs created thus far.

The newly-formed Unit for Technical Assistance made a huge contribution during the year towards the development and empowerment of CASP applicants, and officials with knowledge and plans to assist agricultural resource management and business development. A database of 150 professional service providers gives the Unit quick access to professionals who can assist farmers in their request for assistance towards the CASP funds. A total of R3,595 million was applied to appoint service providers to 101 requests approved for assistance.

The most prominent services comprise 20 resource evaluations (soil and water analysis and testing, crop suitability and gross margin calculations), 20 economic viability assessments, 3 environmental impact assessments, 7 business plans reviewed and a varied range of other queries and requests. A new manager for the Unit was appointed in January 2013 after the previous employee resigned. The emphasis is on the development of standardised models that can assist the subject matter specialist to render further support to the agricultural community.


MOSSEL BAY MATZIKAMA1.2.3.4.5.6.7.8.9.

FriemersheimBrandtwachtBuisplaasToekomsGrootbrakSonskyn ValleiRuiterbosHerbertsdaleVleesbaai

1.2.3.4.

Lutzville WesEbenhaeserPapendorpDoringbaai

OudtshoornMunicipalityCity of Cape TownMunicipalityCity of Cape TownMunicipalityCity of Cape TownMunicipalityWitzenbergMunicipalityWitzenbergMunicipalityWitzenbergMunicipalityMatzikamaMunicipalityBeaufort WestMunicipalityBitouMunicipality

DysselsdorpCouncil of StakeholdersPellaCouncil of StakeholdersAtlantisCouncil of StakeholdersMamreCouncil of StakeholdersNduliCouncil of StakeholdersPrince Alfred HamletCouncil of StakeholdersBella VistaCouncil of StakeholdersMatzikamaCouncil of StakeholdersMurraysburgCouncil of StakeholdersNew HorizonCouncil of Stakeholders

Wards 9 & 10

Ward 29

Ward 29

Ward 29

Ward 1

Ward 4

Ward 6

Ward 2

Ward 1

Ward 4

The CRDP is ward based and the following Council of Stakeholders community structures have been formalised and are ready to start operating:

23


PROGRAMME 3: RURAL DEVELOPMENT AND POVERTY ALLEVIATIONSub-Programme 3.1: Rural Nodal Development Programme (e.g. CRDP)

Strategic Objective Actual Achievement 2011/2012

Planned Target against Actual Achievement

2012/2013


2012/2013


Target ActualAssist with the implementation of the CRDP programme in selected rural nodes.

5 9 13 4More Councils were supported as CRDP programme got momentum.

Sub-Programme 3.2: Community and Household Food Security Strategic Objective Actual Achievement


2012/2013


2012/2013


Target ActualNumber of vulnerable communities and households assisted to provide them with the means to produce their own food.

919 1003 1211 208

Sub-Programme 3.2: Community and Household Food Security Performance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualNumber of community gardens delivered. 9 70 16 -54

Demand driven service. The gardens could not be delivered due to funding becoming available very late.

Number of household gardens delivered.

636 864 294 -570

Household gardens not yet fully implemented and some production inputs are still in process due to the seasonal demand.

Number of food security interventions assisted. 1 1 1 -

Sub-programme 3.1: Rural Nodal Development Programme (e.g. CRDP)Performance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualNumber of Council of Stakeholders supported.

0 5 8 3

Councils were supported earlier than anticipated. Additional councils were added for the year due to the expansion of the CRDP programme.

Number of rural development projects planned and implemented.* 5 2 3 1

Additional projects were funded as the CRDP project got momentum.

Number of projects implemented on a multi-year basis. - 2 2 -

* Please note this is based on demand and relates to a formal agreement about funding.

A mechanisation project initiated by the National Department of Agriculture, Fishing and Forestry was started whereby 72 tractors will be made available to specific farms and communities. This project and assets worth R38,5 million will be managed by Casidra during 2013. The design of an irrigation scheme at Ebenhaezer was completed and will enter the implementation phase in 2013, depending on the environmental impact assessment results and funding of R30 million promised by the DRDLR.

Sub-programme 3.5: FET Training

This programme received further support of R4,58 million during the year and outperformed its targets. Large numbers of farmers and farm workers are being trained. The allocation of funds for 2013/14 will double and new methodologies and strategies will need to be developed to cope with the deliverables.

24

Sub-Programme 3.2: Community and Household Food Security Performance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualNumber of reports submittedQuarterly progress reports on all projects and commodities 4 4 4 -

A report to confirm that projectshave commenced within 6 months.

784 934 73 -861

Many of the 2012/13 funded projects did not start in time as it was approved very late due to the process of a new CPAC being formed to approve requests.

Number of projects implemented on a multi-year basis. 274 69 901 832 A lot of the previous year’s projects

carried over were completed.


Sub-Programme 3.3: Farm Worker Development Strategic Objective Actual Achievement


2012/2013


2012/2013


Target ActualNumber of substance abuse and awareness campaigns. 0 2 2 No deviation

Sub-Programme 3.3: Farm Worker DevelopmentPerformance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualNumber of projects implemented on a multi-year basis. 0 2 2 -

Sub-Programme 3.4: Project Management Services Strategic Objective Actual Achievement


2012/2013


2012/2013


Target ActualProvide a project management service to respond to rural develop-ment programmes and initiatives.

5 15 8 -7 Less multi-year projects were carried over than planned.

Sub-Programme 3.4: Project Management Services Performance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualValue of disaster funding assistance to farmers as per Memorandum of Agreement (MoA) instruction.

R45.605 m 0 R24.121m R24.121mPayments are done as per request.

Value of contract signed for Stony Point implementation in 2011/12. R8.55 m - - - Only 2011/12 deliverable

Ensure deliverables according to business plan for Stony Point. 0 1 1 -

Number of progress reports and financialstatementsforStonyPoint. 9 12 12 -

Number of projects implemented on a multi-year basis. - 9 1 -8

Projects were completed in the previous year and not carried over as planned.

Number of projects implemented in 2012/13. - 5 6 1

Implementation of projects is based on transfer of funding and on a demand basis.

25


Sub-Programme 3.5: FET TrainingStrategic Objective Actual Achievement


2012/2013


2012/2013


Target ActualNumber of farmers and communities in need of skills development equipped with the relevant skills through training and development.

2653 1000 3695 2695

Short courses resulted in more farmers attending and exceeded the planned target.

Sub-Programme 3.5: FET TrainingPerformance Indicator Actual Achievement


2012/2013


2012/2013


Target ActualNumber of farmers trained in accredited courses facilitated. 1714 570 2006 1436

Short courses and more effective service delivery systems resulted in better performance.

Number of farmers trained in non-accredited courses facilitated. 939 430 1689 1259

Short courses and more effective service delivery systems resulted in better performance.

Changes to planned targetsUnder 3.1 Rural Nodal Development: The target was adjusted to 5 for Council of Stakeholders supported. It was a mathematical correction, as the quarterly target was correct.Under 3.4 Project Management Services: An additional target of projects was inserted to account for the projects funded specifically from the 2012/13 year.

Purpose:

To enhance business growth and the creation of employment in rural areas through the leveraging and encouraging of investment from the private sector and support for local economic development in general.

Strategic Objective:

Sub-programme:


The LED Growth Fund started the reporting year with R9,8 million in the bank. 47 funding applications were processed and assessed for eligibility. Of these, only 21 projects met the funding criteria with a combined total of R7,8 million allocated for the successful beneficiaries. Casidra entered into grant agreements with the beneficiaries. For this reporting year only R6,3 million of the funds was disbursed to the beneficiaries. By the end of this reporting year, 17 of these projects were completed.

The outstanding projects allocated for funding that were not implemented as per funding requirements for this reporting year were:

The programme has exceeded all of its targets set out for the reporting period which clearly indicates the demand for this type of service within the Province. Once again this year’s performance illustrates that pay out of funds in the metro areas far exceed that in the rural areas. The number of beneficiaries in the metro area far exceeded rural areas.

The Oudtshoorn Entrepreneurship Fund operates this financial year with R1,2 million in bank. Of this amount only R605 000 was a transfer from the Municipality for the 2012/2013 year, an amount of R202 372, was from the previous financial year end the rest of the R605 000, were repayments from beneficiaries of the funds. From the combined total of R1,2 million in the bank only R523 000 was disbursed to 21 beneficiaries during the reporting year.

All repayments are directly utilised to assist other businesses within the greater Oudtshoorn Municipality with working capital to execute their contracts or tenders. The two major challenges for the 2012/2013 year about the fund are:

1. Slow uptake of the fund.2. Low repayment rate.

Provide assistance to growth orientated businesses which lead to employment growth.

Provide a project management service to respond to economic development initiatives and programmes.

Project Management Services

1.2.

3.

Two agricultural related projects that are both seasonal.One research related project that relies on input of data from key Captains of the Industry and markets.One ISO project that has set milestones and timeframes.

PROGRAMME 4: LOCAL ECONOMIC DEVELOPMENT

26

Sub-Programme 4.1: Project Management ServicesPerformance Indicator Actual

Achievement 2011/2012

Planned Target against Actual Achievement

2012/2013


2012/2013


Target ActualValue of funds leveraged.

R6.4 million R2 million R5 860 284 R3 860 284Demand driven service. More beneficiaries with their ownfunding contribution.

Number of businesses expanded/sustained across municipalities. 73 30 113 83

Demand driven service. More funding applications were received than initially anticipated.

Number of economic development projects supported at local and regional level.

14 10 21 11Requests for support from projects were much higher than initially anticipated.

Sub-Programme 4.1: Project Management ServicesStrategic Objective Actual Achievement


2012/2013


2012/2013


Target ActualProvide a project management service to respond to Economic Development initiatives in rural areas.

47 40 134 94 Demand driven service.


Changes to planned targets

Sub Programme 4.1. Project Management Services

Funding for the anticipated projects as outlined in the Corporate Plan 2012/13, was not feasible as a result of government budget reallocation processes.

Performance Indicators

4.1.1. Establish number of facilitators for investment and co-ordination of rural development projects.4.1.2. Set up a database for available funding sources.

The Performance Indicators above were then changed to the following:

4.1.1.4.1.2.

4.1.3.

Value of funds leveraged.Number of businesses expanded or sustained across municipalities.Number of economic development projects supported at local and regional level.

Casidra is very concerned about both the slow uptake and low repayment rate and has reported this to the Municipality. The matter was discussed at length at the recent Municipality Portfolio Committee meeting. All council members agreed that with the closure of the RED Door, there has been no one to assist these entrepreneurs to properly cost tenders. Most of these entrepreneurs under quoted on contracts and tenders which resulted in a loss for them and inability to pay back their loans.

A decision was made at that Portfolio Committee meeting that Casidra should help them set up a Small Business Centre to assist entrepreneurs in the area. With a Small Business Centre, SMME will be assisted with the application process as well.

When assessing the performance of the fund, the difference in financial years of the Municipality and Casidra should be taken into consideration. Casidra’s financial year start in April whereas the municipality’s start in July.

27

PART B: PERFORMANCE INFORMATIONSUMMARY OF FINANCIAL INFORMATION

PROGRAMME EXPENDITURE: CASIDRA MANAGED THE ADMINISTRATION OF THE FOLLOWING PROJECTS

PROJECT NAME AND FUNDER ROLL OVER2012/04/01

FUNDERS AND OTHER INCOME

UTILISED IN2013

WESTERN CAPE DEPARTMENT OF AGRICULTURE CASP AgricultureCASP Cape WinelandsCASP Central KarooCASP Eden KarooCASP InterestCASP Winelands/OverbergCASP West CoastCASP West Coast MetroFlood disasters 2008Drought relief 2011 allocationAmalienstein Anhalt Waaikraal

3 213 14012 373 798

6 022 3951 223 674

463 76737 433 69411 037 3357 096 351

15 500 69922 989 758

612 1012 952 038

28 914

3 211 82518 843 357

4 415 220489 787131 146

41 656 94715 528 908

2 325 852641 792679 123

4 950 52613 040 512

2 832 965

(2 424 075)(9 667 161)

(10 984 192)(1 315 148)(3 820 551)

(28 369 531)(13 485 976)

(4 201 921)(4 223 539)

(21 355 036)(4 309 913)

(12 049 310)(2 825 407)

Total WCDoA 120 947 664 108 747 960 (119 031 760)

DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISMCo-op Voucher Programme Enterprise Development Fund RED Door RED Finance/Siyabulela Rural Voucher Skills and Work Spatial Fund

842 172 3304 406 964

79 1541 975 1881 667 0879 846 442

-72 553

300 1451 782

24 66541 578

4 358 932

(62)(5 192 050)(3 207 109)

56 778(84 105)

(1 707 592)(6 969 909)

Total DEDAT 20 147 249 4 799 655 (17 104 049)

OTHER FUNDERSBitou Entrepreneur Support City Voucher iKapa ABSA FundMerweville Oudtshoorn Support Project Social Entrepreneurial Business SupportStony Point Stony Point Phase 2

27 27769 060

1 288 70248 902

202 273199 901

-6 305

31 896272

198 1191 571

614 7922 590

2 342 00054 215

(3 960)(123)

(78 252)(50 351)

(148 712)(3 035)

(784 078)(60 520)

Total OTHER FUNDERS 1 842 420 3 245 455 (1 129 031)

TOTAL ALL PROJECTS 142 937 333 116 793 070 (137 264 840)

NOTE: Full disclosure is in the detailed Financial StatementsTHE FOLLOWING INFORMATION IS LISTED IN THE ANNUAL FINANCIAL STATEMENTS• Statement of Accounting Policies.• Disclosure notes to the Annual Financial Statements.

28

PART C: GOVERNANCECORPORATE GOVERNANCE REPORT FOR THE YEAR ENDED 31 MARCH 2013

1. INTRODUCTION The Board of Directors of Casidra is committed to the principles of effective corporate governance and strives for the highest standards of integrity and ethics. The Board recognises the need to conduct the Company’s affairs with integrity and according to generally accepted corporate governance practices.

2. COMPLIANCE WITH THE KING REPORT

The Board supports the South African Code of Corporate Practices and Conduct, as set out in the King III Code of Corporate Governance, and is satisfied that the Company has complied with South African legislation and regulations in this financial year.

The Board’s Charter as well as the Committees’ Charters were revised and approved at a Board meeting held on 7 March 2013, in compliance with the recommendations of the King III Code on Corporate Governance.

3. BOARD OF DIRECTORS

The Board of Directors is responsible for the total and effective control of the Company. The Board is composed of five to eight non-executive directors.

The Chairperson of the Board is an independent non- executive director in accordance with the requirements of the King Code.

The non-executive directors are elected in terms of the Board Charter and their reappointment is not automatic, but by way of vote.

The Board also has four active committees in which certain specialised issues are addressed, namely Audit and Risk Committee, Nomination Committee, Remuneration Committee and Social and Ethics Committee. The Executive Committee meets when required. Each committee has a charter and a mandate.

In the financial year under review, the Board met four times and focused on, inter alia, strategy, performance monitoring, governance and operating and capital budgets. Other matters relating to the overall Company objectives were also discussed and various policies were approved.

The Board has unrestricted access to all Company information, records and documents to enable it to discharge its responsibilities.

4. CASIDRA BOARD CHARTER

Purpose and objectivesThe purpose of the Charter is to regulate how business is conducted by the Board in accordance with the principles of good governance. The Charter sets out the specific responsibilities to be discharged by Board members collectively and the individual roles expected of them. The objectives of the Charter entail ensuring, inter alia, that

all Board members acting on behalf of the Company are aware of their duties and responsibilities as Board members and of the legislation and various regulations affecting their conduct, as well as ensuring that the principles of good governance are applied in all their dealings in respect of and on behalf of the Company.

Roles and responsibilities

Acts as the focal point for and custodian of corporate governance by managing its relationship with management, the shareholder and other stakeholders of the Company along sound corporate governance principles.

Guides an integrated approach to strategy, risk, performance and sustainability by:

Provides effective leadership on an ethical foundation.

Ensures that the Company is, and is seen to be, a responsible corporate citizen by having regard to not only the financial aspects of the business of the Company, but also the impact that business operations have on the environment and the society within which it operates.

Ensures that the Company’s ethics are managed effectively.

Ensures that the Company has an effective and independent Audit and Risk Committee.

Is responsible for the governance of risk.

Is responsible for information technology governance.

Ensures that the Company complies with applicable laws

Ensures that there is an effective risk based internal audit.

Ensures corporate action when stakeholders’ perceptions affect the Company’s reputation negatively.

Ensures the integrity of the Company’s integrated annual report.

Acts in the best interests of the Company by ensuring that individual directors:

Adhere to legal standards of conduct;Are permitted to take independent advice in connection with their duties following an agreed procedure; andDisclose real or perceived conflicts to the Board and deal with them accordingly.

Contributing to and approving the strategy;Satisfying itself that the strategy and corporate and business plans do not give rise to risks that have not been thoroughly assessed by management;Identifying key performance and risk areas;Ensuring that the strategy will result in sustainable outcomes; andConsidering sustainability as a business opportunity that guides strategy formulation.

29

5. BOARD APPOINTMENTS

Non-executive directors on the Casidra Board are appointed in terms of the Memorandum of Incorporation and reappointment is not automatic.

One third of the serving, non-executive, independent directors, or the number closest to one-third, must resign/exit from office at the Annual General Meeting in each odd-numbered year.

The exiting directors are those who have been in office the longest since the most recent election, but where persons became directors on the same day, the person who is to resign must be decided among the directors themselves.

Exiting directors are eligible for reappointment (predetermined by statute) at the annual general meeting, on condition that if a director reaches the age of seventy during his/her term of office, such person is not eligible for reappointment.

6. ATTENDANCE AT BOARD MEETINGS

The Board met four times for planned meetings and once for an ad hoc meeting during the financial year, and the attendance was as follows:

7. BOARD REMUNERATION

In accordance with the provisions of section 28.1.1 of the Treasury regulations issued in terms of the PFMA Act 1 of 1999, all emoluments of directors are disclosed in the financial statements.

8. BOARD PERFORMANCE ASSESSMENT

A Board self-evaluation was undertaken and the process was driven by the Company Secretary by way of a written questionnaire. The results of the said self-evaluation process were analysed by the Chairperson and the Chief Executive Officer. There are currently no areas of concern.

9. SHARE DEALINGS The directors, members of management and employees of the Company do not own shares in the Company.

10. BOARD COMMITTEES

All Board committees operate under written charters which have been revised and approved by the Board. There is transparency and full disclosure from Board committees to the Board. Committee Chairpersons are available to provide the Board with verbal reports on recent committee deliverables and activities at the subsequent Board meetings.

Board committees are empowered to take independent outside professional advice as and when deemed necessary.

The Company Secretary provides secretarial services to each of the committees.

The Board is of the view that the Board committees have, during the year under review, effectively discharged their responsibilities as contained in their respective charters.

A synopsis of the committees of the Board of Directors and their mandates are contained below.

10.1 Audit and Risk Committee

CompositionThe Audit and Risk Committee comprises of at least three independent non-executive directors who are elected at the Annual General Meeting.

The members, as at the end of the financial year, were Prof. E Calitz (Chairperson), Ms GM Ntuli and Mr JH Roos.

ChairpersonThe Board of Directors appoints the Chairperson from the members of the Committee and determines the period for which the person shall hold office.

Frequency of meetingsMeetings of the Committee are held as frequently as the Committee considers appropriate, but it normally meets at least twice per calendar year.

The Committee met twice during the financial year and the attendance was as follows:


Commences business rescue proceedings as soon as the Company is financially distressed.

Annually, at the Board meeting preceding the Annual General Meeting, elects an independent non-executive director as Chairperson of the Board.

Appoints and ensures the evaluation of the performance of the Chief Executive Officer.

Ensures compliance with the provisions of the Shareholder’s Compact.

Develops a long-term strategic plan as required by the PFMA.

Directors Ad Hoc May

June August November March

E CalitzGM Ntuli AGA Oliver AJH RoosJF Smith

Legend: = Attendance, A = Apologies

Directors July FebruaryE CalitzGM Ntuli A AJH Roos


30


External audit

Primary responsibilities

Internal audit

Risk management

InviteesThe Chairperson of the Audit and Risk Committee, in his/her discretion, may invite other members of the Board of Directors or internal auditors to attend and be heard at meetings of the Committee.

The Chief Executive Officer and Chief Financial Officer attend all meetings of the Committee and are excused for in camera sessions.

Meetings are also attended by internal and external auditors and relevant members of management.

AccessThe external and internal auditors have unlimited access to the Audit and Risk Committee, thereby ensuring that independence is not compromised in any way.

10.2 Remuneration Committee

CompositionThe Remuneration Committee comprises of at least three non-executive directors.

The members, as at the end of the financial year, were Adv. GA Oliver, Mr JH Roos and Prof. JF Smith (Chairperson).

Nominates the independent external auditor for appointment by the Shareholder in terms of the Companies Act, 2008 and any other legislation relating to the appointment of auditors.

Approves the terms of engagement and remuneration for the external audit engagement.

Monitors and reports on the independence, objectivity quality and effectiveness of the external auditor in the annual financial statements, taking into consideration relevant professional and regulatory requirements.

Approves the contracts for non-audit services to be rendered by a service provider.

Ensures that there is a process for the Committee to be informed of any reportable irregularities (as identified in the Auditing Profession Act, 2005) identified and reported by the external auditor.

Discusses the nature, scope and plan for the audit with the auditor before the audit commences and, as deemed necessary, during the course of the audit.

Reviews, with the external auditors, the findings of their work.

Has regard to all factors and risks that may impact on the integrity of the integrated report, for example, a misleading picture, significant judgements, reporting decisions made, monitoring or enforcement actions by a regulatory body, evidence that brings into question previously published information, forward-looking information, et cetera.

Reviews the annual financial statements, summarised integrated information and similar documents.

Comments in the annual financial statements on the financial statements, the accounting practices and the effectiveness of the internal financial controls.

Reviews the clarity and completeness of disclosure of sustainability issues in the integrated report to ensure that it is reliable and does not conflict with the financial information.

Recommends to the Board whether or not to engage an external assurance provider on material sustainability issues.

Recommends the integrated report for approval by the Board.

Reviews whether the content of the summarised information provides a balanced view.

Engages the external auditors to provide assurance on the summarised financial information.

Approves the internal audit plan.

Monitors and reviews the effectiveness of the internal audit function.

Reviews and discusses the scope of work of internal audit, issues identified and recommendations.

Provides a source of information, as appropriate, regarding instances of fraud, corruption, unethical behaviour, irregularities and other risks.

Considers the risk management strategy, Code of Ethics and Fraud Prevention Plan.

Monitors the continuous risk management assessment and implementation of the strategy and plan.

Makes recommendations to the Board concerning the levels of risk tolerance and appetite, and monitors that risks are managed within the levels of tolerance and appetite as approved by the Board.

Ensures that management considers and implements appropriate risk monitoring and responses.

Expresses the Committee’s formal opinion to the Board on the effectiveness of the system and process of risk management.

Reviews the timely, comprehensive and relevant reporting concerning risk management that is to be included in the integrated annual report.

31

ChairpersonThe Chairperson is nominated by the Board.

Frequency of meetingsCommittee meetings are held as and when necessary, but at least once a year when general salary adjustments are discussed.

The Committee met once during the financial year and the attendance was as follows:


InviteesThe Committee may co-opt specific expertise, both internal and external, in order to make informed decisions. No management member may be present when his/her own salary or fee is being discussed except when requested to provide specific information.

10.3 NOMINATION COMMITTEE

CompositionThe members of the Nomination Committee are appointed by the Board. The Nomination Committee comprises of at least two directors.

The members, as at the end of the financial year, were Ms GM Ntuli, Mr JH Roos (Chairperson) and Prof. JF Smith.


Frequency of meetingsCommittee meetings are held as and when necessary.

The Committee did not meet during the financial year.


10.4 SOCIAL AND ETHICS COMMITTEE

This is a new committee and it was established in terms of the Companies Act, 2008.

InviteesThe Social and Ethics Committee has the authority to obtain advice and seek assistance from internal and external legal, accounting and other advisors.

CompositionThe members of the Social and Ethics Committee are appointed by the Board. The Social and Ethics Committee comprises of at least three directors.

The members, as at the end of the financial year, were Adv. GA Oliver (Chairperson), Ms GM Ntuli and Mr JH Roos.



Directors April June FebruaryGA Oliver JH RoosJF Smith


Oversees the establishment and implementation of remuneration policies in relation to non-executive directors and employees’ remuneration.

Reviews the outcomes of the implementation of the policies for whether these policies promote the achievement of strategic objectives and encourage individual performance. The Committee will recommend the necessary improvements to the Board in this regard.

Provides sufficient information for the shareholder and the Board to assess the remuneration policy.

Ensures that the Company’s directors and employees receive fair and competitive remuneration.

Ensures that the remuneration of management is determined on an independent basis by members of the Board and management who do not have a personal interest in the outcome of their decision, bearing in mind the financial position of the Company. The Committee may co-opt specific expertise, both internal and external, in order to enable it to make informed decisions. The Chief Executive Officer and a member of management may not be present when his/her own remuneration is being discussed except when requested to provide, and for the purpose of providing, specific information.

Ensures that provision is made for retirement benefits for personnel.

Makes recommendations on the basis of the Company’s remuneration system.

Decides where management’s remuneration must be positioned in relation to government and other organisations. The Committee must make comparisons with other organisations and ensure that logical relativity is maintained both internally and externally. The Chairperson of the Committee must decide what information is necessary for the Committee to make recommendations and request management to make the information available as well as assist with post evaluations for the Chief Executive Officer and senior management posts (post level P1 to P6) where necessary.

Performs duties as directed by the Board.

Advises management with regard to personnel retrench-ment, severance packages, early retirements, handling medical disabilities, et cetera.

Identifies suitable members to serve on the Board.

Performs reference and background checks of candidates prior to nomination.

Formalises the appointment of directors through an agreement between the Company and the director.

32

Frequency of meetingsCommittee meetings are held as and when necessary.

The Committee met once during the financial year and the attendance was as follows:


InviteesThe Social and Ethics Committee has the authority to obtain advice and seek assistance from internal and external advisors.

11. COMPANY SECRETARY

All directors have access to the Company Secretary who ensures that the Board’s procedures, applicable rules and regulations are fully applied.

The Company Secretary keeps the Board abreast of relevant changes in legislation and governance best practices. The Company Secretary oversees the induction of new directors as well as the ongoing training of directors.

The information required for each Board meeting is sent to directors in a timely manner before each meeting to enable them to appraise themselves of the information and to consider Company information in terms of their statutory and fiduciary responsibility.

The tabling of documents at Board meetings is done only on an exceptional basis and with the permission of the Chairperson.

The Company Secretary is appointed by the Board.

12. GOING CONCERN

On the recommendation of the Audit and Risk Committee, the Board has considered the facts and assumptions on which it relies to conclude that the business will continue as a going concern in the financial year ahead.

The directors are of the opinion that the business will be a going concern in the year ahead and their statement in this

regard is also contained in the statement on the responsibility of the directors for the financial statements.

13. INTERNAL CONTROL

The Board acknowledges its responsibility for ensuring that the Company implements and monitors the effectiveness of systems of internal, financial and operating control. These systems are designed to guard against material misstatement and losses.

The internal, financial and operating controls maintained by the Company are designed to provide reasonable assurance regarding:

The internal audit function and the external auditors independently appraise the adequacy and effectiveness of the internal controls.

Nothing has come to the attention of the directors to indicate that any material breakdown in the functioning of these controls, procedures and systems have occurred during the year under review.

14. RISK MANAGEMENT

The Board accepts final responsibility for the risk management systems of the Company.

Material risks in the Company have been identified and documented in a risk framework. Proper internal control systems are in place and maintained. The timely execution of control procedures and compliance with control procedures are monitored internally.

Santam Limited insures Company assets comprehensively for abnormal disasters and other material risks.

15. MATERIALITY

All significant events, risks and other aspects have been disclosed in the statements and annual report.

16. FRAUD PREVENTION AND FRAUD LINE

A fraud prevention plan as well as a whistle-blowing facility (fraud line) was in place during the financial year to assist in ensuring that the risk of fraud is monitored and minimised.

The fraud line is a hotline whereby any employee or stakeholder can, on an anonymous and confidential basis, report any dubious activity or unethical conduct in the Company. Reports are sent directly to the Chief Executive Officer and reported to the Audit and Risk Committee.

Nothing has come to the attention of the Committee to indicate actual or suspected material financial loss, fraud or error that may have affected the company during the year under review.

Safeguarding of assets against unauthorised use or misappropriation;Compliance with applicable laws and regulations;Maintenance of proper accounting records; andAdequacy and reliability of financial information.


Monitors the Company’s activities, having regard to any relevant legislation, other legal requirements or prevailing codes of best practice, with regard to matters relating to social and economic development, good corporate citizenship, the environment, health and public safety, consumer relationships and labour and employment adherence.

Draws matters within its mandate to the attention of the Board as and when required.

Reports to the Shareholder at the Company’s Annual General Meeting on the matters within its mandate.

DIRECTORS MARCHGA Oliver GM NtuliJH Roos


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17. CONTRACTUAL OBLIGATIONS AND LEGAL ACTIONS

An agreement was concluded with the Western Cape Provincial Government in terms of which transfer funds were granted to Casidra. Obligations in terms of the agreement and the Public Finance Management Act have been met.

Project agreements were signed with funders for various projects. Reporting is done in accordance with the provisions of the agreements and the financial scope is disclosed in the Annual Report.

The Company is subject to legal actions inherent to its normal activities. There are no claims pending against the Company.

18. BROAD-BASED BLACK ECONOMIC EMPOWERMENT

The third verification audit has been completed by BEE Verification Agency (Proprietary) Limited, an independent rating agency, to verify and certify the Company’s Broad- Based Black Economic Empowerment status.

The audit was completed in February 2013 and Casidra scored a Level 3 (Procurement recognition level 110%).

19. INTERNAL AUDIT FUNCTION

The independent internal audit function has been outsourced and reports directly to the Chief Executive Officer.

The internal auditors liaise closely with the external auditors to prevent duplication.

The findings and recommendations of all internal audit processes are reported to management and the Audit and Risk Committee.

20. ETHICS

Casidra’s Code of ethics has been circulated to every employee with a view that all employees may participate and adopt it as an inherent cornerstone of Casidra.

A Social and Ethics Committee was established in 2012 and met once during the financial year.

As a new development in governance, the functioning of this committee will evolve over time as experience in this area is gained.

The committee reviewed a comprehensive report relating to its statutory functions in terms of the Companies Act.

21. BOARD MEMBERS PROFILES


GA (Gary) OliverAge: 54Year appointed: 1999Title: Chairperson:Independent non-executive director

Qualifications:• BProc• LLM(Public Law)

Committee Memberships:• Executive Committee• Social and Ethics Committee• Remuneration Committee

Other Directorships/Trusteeships:• Member: Cape Bar• Member and Chairperson: Genadendal Museum Board• National President and Chairperson: CANSA

Skills, Expertise and ExperienceAdv. Oliver has been in private legal practice since 2002. As a Genadendal-born citizen in the Overberg district, Advocate Oliver has a long involvement with rural development. He is a former State Legal Advisor and Senior Manager in the Western Cape Provincial Government.

JF (Julian) SmithAge: 59Year appointed: 2002Title: Vice Chairperson:Independent non-executive director

Qualifications: • HDE• MA• DLitt

Committee Memberships:• Executive Committee• Nomination Committee• Remuneration Committee (Chairperson)

Other Directorships/Trusteeships:• Stellenbosch University Sport Performance Institute• Sabinet Online

Skills, Expertise and ExperienceProfessor Smith started his career as a teacher in 1976. He became a lecturer and later a registrar at the University of the Western Cape. He has experience in higher education management of more than twenty years and has been a Vice-Rector at the University of Stellenbosch since 2000. He has a strong background and interest in sport, NGO’s and cultural activities.

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21. BOARD MEMBERS PROFILES

E (Estian) CalitzAge: 63Year appointed: 2011Title: Independent non-executive director

Qualifications: B Com D Com (Economics)

Committee Memberships:• Audit and Risk (Chairperson)

Other Directorships/Trusteeships: Member of several bodies, Committees and Boards Member: Board of Trustees University of Stellenbosch Retirement Fund Chairperson: Audit Committee Department of Education Provincial Government of Western Cape

Skills, Expertise and ExperienceProf Calitz, professor of Economics at the University of Stellenbosch, has extensive experience in economic and fiscal policy making and more than 20 years of academic experience which includes writing of about 40 articles for various publications (journals, books, etc.) as well as several teaching commitments across South Africa and in Germany as a visiting Professor. He is a former Director-General of the Department of Finance (now the National Treasury) of the South African Government and a former Executive Director: Finance of the University of Stellenbosch.


GM (Gugu) NtuliAge: 39Year appointed: 2008Title: Independent non-executive director

Qualifications: BBus QUT (Australia) BAppSc QUT (Australia) MBA Sports Management Diploma: French Language

Committee Memberships: Audit and Risk Committee Nomination Committee Social and Ethics Committee

Other Directorships/Trusteeships: Member of Cricket South Africa Transformation Division Committee• Director of African Sports Management Association

Skills, Expertise and ExperienceMs Ntuli, is the former Chief Executive Officer of the Stellenbosch University Sport Performance Institute, now overseas Media and public relations for Adidas South Africa. She has extensive managerial experience and expertise in strategic management, marketing, communications, public relations and media.

JH (Jannie) RoosAge: 66Year appointed: 2009Title: Non-executive director

Qualifications:• Diploma: Administration/Anthropology• Advanced Diploma: Personnel Management and Management Training• Programme in Advance Labour Law

Committee Memberships: Audit and Risk Committee Executive Committee Nomination Committee Remuneration Committee Social and Ethics Committee

Other Directorships/Trusteeships:None

Skills, Expertise and ExperienceMr Roos was the former Head of the Office of the Minister of Agriculture and Rural Development in the Western Cape. He spent most of his career working in the public service holding several senior positions in the Transvaal Provincial Administration, the Cape Provincial Administration, the Provincial Service Commission and Western Cape Premier’s office. He is an experienced senior manager and believes in human capital development.

35

PART C: FINANCIAL INFORMATION - CASIDRA SOC LIMITEDREPORT OF THE AUDIT AND RISK COMMITTEE - FOR THE YEAR ENDED 31 MARCH 2013

1. LEGAL REQUIREMENTS

The Audit and Risk Committee has pleasure in submitting this report, as required by sections 51(1)(a)(ii) and 76(4)(d) of the Public Finance Management Act, 1999 (the “Act”).

Section 38(1)(a) of the Public Finance Management Act, 1999 requires accounting officers of government departments to ensure that entities receiving transfer funds implement effective, efficient and transparent financial management and internal control systems. The regulations to the Act determine audit and internal audit requirements. Casidra complied with the legal requirements.

2. MANAGEMENT RESPONSIBILITY

The accounting officer is responsible for guiding organisational strategy, major plans of action, risk policies, annual budgets and business plans, monitoring of performance and establishing best-practice management procedures.

3. AUDIT AND RISK COMMITTEE RESPONSIBILITY

The Audit and Risk Committee has a written charter that sets out the scope of their activities and authorities, and the charter is updated annually. Since 29 August 2006 the responsibilities of the Audit Committee have been expanded to include risk management. During the past year, the Audit and Risk Committee has addressed its responsibilities in terms of the Charter.

The Committee confirmed the Audit and Risk Committee Charter as well as the internal and external audit plans.

The report of the Audit and Risk Committee is based on the work performed by the auditing firms PwC, Alberto Prins and Boshoff Visser. Auditing occurs within the context of external and risk-based internal audit plans approved by the Audit and Risk Committee.

4. FUNCTIONS OF THE AUDIT AND RISK COMMITTEE

The Audit and Risk Committee has discharged the functions in terms of its Charter and ascribed to it in terms of the Act as follows:

5. INTERNAL CONTROL MECHANISMS AND RISK MANAGEMENT The control framework is designed to provide reasonable assurance regarding the achievement of objectives in the following areas:

Casidra has a comprehensive process of annual budgets and detailed monthly reporting. The Accounting Officer and his management team review the annual budget and actual expenses on a continuous basis and report the actual versus the budgeted figures quarterly to the Board. A clear distinction is drawn between main business and business undertaken on an agency basis. Financial statements regarding the various projects, which Casidra oversees and finances on behalf of its shareholder, the Department of Agriculture of the Western Cape Province, as well as the Department of Economic Development and Tourism, are reported and audited separately and identified separately within the Annual Financial Statements of Casidra.

Reviewed the abridged results and the Annual Financial Statements, culminating in a recommendation to the Board to approve them.

Reviewed the Governance report, culminating in a recommendation to the Board to approve it.

In the course of its reviews the Committee:

Took appropriate steps to ensure that the Annual Financial Statements were prepared in accordance with Statements of General Accepted Accounting Practice in South Africa and in the manner required by the Companies Act of South Africa;

Dealt with concerns or complaints relating to accounting policies, the auditing or content of Annual Financial Statements and internal financial controls;

Reviewed the external audit reports on the Annual Financial Statements;

Verified the quality, services and independence of the external auditors, nominated PwC Inc. as the auditors for 2013 and noted the appointment of Mr RJ Jacobs as the designated auditor (the designated auditor and manager responsible for the audit is replaced every five years); and

Approved the audit fees and engagement terms of the external auditors.

The maintenance of proper accounting records and the reliability of financial information used within Casidra;

The appropriateness of internal financial controls;

Compliance with applicable laws, regulations and codes of conduct;

The detection and minimisation of significant risks associated with fraud, reputation, inadequate governance, and potential liability and loss, including the safeguarding of assets;

Management of potential conflicts of interest of the Board of Directors and management;

The effectiveness of operations;

The adequacy of risk management procedures;

The internal audit and risk management reports and, where relevant, the submission of recommendations to the Board; and

The effectiveness of risk management, controls and the governance processes.

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PART C: FINANCIAL INFORMATION - CASIDRA SOC LIMITEDREPORT OF THE AUDIT AND RISK COMMITTEE - FOR THE YEAR ENDED 31 MARCH 2013

The system of internal control is continually monitored and reported on to the Board of Directors. Internal systems are applied to provide reasonable assurance that assets are safeguarded and transactions are executed in accordance with management’s authorisation. Monitoring processes include management review and testing by auditors. The external auditors performed testing of financial transactions.

The risk dashboard is updated regularly and reported quarterly to the Board.

No incidents were brought to the attention of the Committee to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review.

6. COMPLIANCE

Casidra complied with relevant laws, regulations and policies, as well as with Casidra’s code of conduct.

Risk and compliance reports were noted at Audit and Risk Committee meetings.

During the year under review nothing has come to the attention of the Committee to indicate any non-compliance with relevant laws, regulations and the code of conduct.

7. FRAUD PREVENTION

A fraud prevention plan was in place during the financial year. A whistle-blowing facility has assisted in ensuring that the risk of fraud is monitored and minimised.

8. INTERNAL AUDIT

The Audit and Risk Committee fulfils an oversight role regarding the Company’s Annual Financial Statements and the reporting process, including the system of internal financial control. It is responsible for ensuring that the Company’s internal audit function is independent and has the necessary resources, standing and authority within the organisation to enable it to discharge its duties.

Furthermore, the Audit and Risk Committee oversees co-operation between the internal and external auditors and serves as a link between the Board of Directors and these functions. The internal audit function was outsourced. It is recognised that internal control systems can only provide reasonable assurance against any material misstatement and loss.

Internal audit assessed the effectiveness of internal controls independently and recommended improvements.

Management maintains adequate accounting records, aimed at the achievement of objectives. Management continues to maintain systems of internal control through a regular and proactive process of auditing and correction.

Since it came into operation during October 1989, then operating under another name, Casidra received its twenty-fourth consecutive unqualified audit report.

Casidra effected adequate internal controls during the financial year and identified risks were properly controlled. Information technology systems used to assist management were adequate and efficient.

9. GOING CONCERN

The Committee has considered the facts and assumptions on which it relies to conclude that the business will continue as a going concern in the financial year ahead.

The Committee is of the opinion that, on the basis of the Shareholder’s Compact and the funding model for Casidra, the business will be a going concern in the year ahead.

10. MEMBERS OF THE AUDIT AND RISK COMMITTEE AND ATTENDANCE AT MEETINGS

The details are reported in the Governance report.

11. ATTENDANCE

The internal and external auditors in their capacity as auditors to the Company attended and reported to all meetings of the Audit and Risk Committee. The Chief Executive Officer and the Chief Financial Officer have a standing invitation to attend meetings and relevant managers attended meetings on invitation.

12. CONFIDENTIAL MEETINGS

The Audit and Risk Committee meetings provide for confidential meetings between the Committee members and the internal and external auditors.

13. INDEPENDENCE OF EXTERNAL AUDITORS

On the basis of a submission to the Audit and Risk Committee, the external auditors confirmed their independence.

Prof E CalitzChairperson: Audit and Risk Committee18 July 2013

37

PART D: HUMAN RESOURCE MANAGEMENTINTRODUCTION

INTRODUCTION

Overview of Human Resource Matters

2012/2013 was a busy year for Human Resources in Casidra, starting with the appointment of a new Chief Executive Officer. The Personnel Policy of Casidra has been finally reviewed and numerous new policies have been implemented. Casidra made many amendments to their employee performance management system. Another challenge for Casidra was the growing militancy of trade unions in the farming sector, leading to two illegal strikes and one sit-in at the Anhalt farm. Worker Committees have been successfully implemented at Waaikraal and Amalienstein Farm.

Set HR Priorities for the year under review and the Impact of these Priorities

Workforce Planning Framework and Key Strategies to Attract and Recruit a Skilled and Capable Workforce

Possible internal successors have been identified for each senior post within Casidra. A training and development strategy has been devised for each possible successor, to address any competency or skills gap they may have. Casidra is continuing to make use of specialised recruitment agencies when filling key posts, and started a database to track the most effective recruitment sources.

Employee Performance Management Framework

Casidra is utilising an Employee Management and Development System to measure the performance of each employee. Quarterly Performance Reviews take place, as well as an annual Performance Assessment which is utilised as the basis for determining performance bonuses and pay progression.

Employee Wellness Programmes

Casidra continuously implements employee wellness interventions, which culminated recently in the approval of an employee wellness strategy. Casidra has also implemented a system of peer counsellors as well as HIV/AIDS Counsellors who have been trained to perform their tasks.

Policy Development

Casidra has reviewed its entire personnel policy, with numerous new policies adopted to ensure alignment with current legislation and human resource management practices. Examples of some new or entirely revised policies include an HIV/AIDS Policy, a Skills Development Policy as well as a Sexual Harassment Policy.

Achievements

Challenges

HR PRIORITIES IMPACTPromote Staff Well-being

Training and Skills Development of Personnel

SoundLabour Relations

Internal Organising

We established a norm of 2% for sick leave, and stayed well within it;We implemented some innovations in our recruitment and selection procedure and made some quality appointments, also promoting employment equity;Wecompiledjobprofilesforeachpost,whicheases the process of job advertising. Staff are also now aware of the requirements of the next-level posts in the organisation;We reviewed the Employee Performance Management and Development System of Casidra with the aim of making it more reviewer- and employee-friendly;A system of peer counsellors was introduced within Casidra and they received training.Company-wide value training took place, which paved the way for a more value-based management style within Casidra;A comprehensive Training Needs Analysis was held, which led to the development of a meaningful Workplace Skills Plan;A concerted effort was made to implement all training that was highlighted in the Workplace Skills Plan. Targeted training took place and the entire training budget was spent;Casidraidentifiedserviceproviderswhocould offer good quality project management qualifications to our staff members – currently six employees are taking these courses.The entire personnel policy of Casidra was reviewed and made electronically available to all staff members in a user-friendly manner; The farm-worker policy has been reviewed and distributed to the farm workers;Casidra’s Staff Forum has started up again and serves a useful role as a consultative body representing staff;All employee-related agreements have been reviewed to make it more user-friendly for staff members.Job Descriptions have been reviewed for the entire Human Resources Department, clarifying roles and responsibilities.

The growing militancy in the labour market, especially on farms;The impact of a few key resignations due to the small size of the organization;Keeping up with changes in the labour legislation environment;The lack of clear direction in the skills development environment; andEmploying a person with a disability due to the nature of the business (frequent travelling).

Successful transfer to the Services SETA, which is a closer fit to the business of Casidra;Development or review of Job Profiles for all jobs within Casidra;Complete overhaul of the Personnel Policy of Casidra; Development and approval of a Skills Development Policy for Casidra; andDevelopment of an inclusive succession planning process for Casidra.

38

PART D: HUMAN RESOURCE MANAGEMENTINTRODUCTION

Future HR Plans / GoalsPerformance Indicator 1: Successful implementation of the full spectrum of Human Resources1.1. Fully implement an integrated, computerised Human Resources and Payroll System.1.2. Review Casidra’s Induction Programme.1.3. A well-functioning Probation Procedure.1.4. Train managers in Labour Relations.1.5. Address Labour Relations/employee Wellness Infrastructure on farms.

Performance Indicator 2: Strategic Human Resources Management2.1. Successfully implement the Employee Wellness Strategy.2.2. Review Maternity Leave Policy.2.3. Accreditation of Project Management course.2.4. Fully implement English Business Writing courses.

Performance Indicator 3: Human Resources Budget3.1. Develop and control a functional Human Resources budget.3.2. InfluenceTrainingbudgetsonfarms.

Performance Indicator 4: Transformation4.1. Continue to conduct the Annual Staff Satisfaction Survey.4.2. Fully implement an inclusive succession plan within Casidra.4.3. Start addressing the disability target in the Employment Equity Plan.4.4. Conduct a Casidra-wide Organisational Development Investigation.4.5. Address Social Problems on farms in an integrated manner.

Personnel Cost by Programme

Personnel Cost by Salary Band

ProgrammeTotal Expenditure

for the Entity(R’000)

Personnel Expenditure

(R’000)

Personnel Expenditure as a % of Total

Expenditure (R’000)

Number of Employees

Average Personnel Cost Per Employee

(R’000)Corporate Services 13 540 9 526 70% 18 529Agriculture and Land Reform 9 163 9 644 76% 23 302

Amalienstein 4 845 696 14% 14 50Anhalt 11 816 1 329 11% 31 43Waaikraal 2 645 701 27% 11 64TOTAL 42 009 19 196 46% 97 198

Salary Band Personnel Expenditure (R’000)

% of Personnel Expenditure to Total

Personnel Cost(R’000)

Number of Employees

Average Personnel Cost Per Employee

(R’000)

Senior Management 5 495 29% 6 916Professionally Qualified 1 926 10% 4 482Skilled 9 945 52% 33 301Semi-skilled 589 3% 7 84Unskilled 1 241 7% 47 26TOTAL 19 196 100% 97 198

HUMAN RESOURCE OVERSIGHT STATISTICS

Performance Rewards

Salary Band Performance Rewards

% of Performance Rewards within Salary Bands

Cost of Performance Rewards

Personnel Expenditure

(R’000)

% of Performance Rewards to Total Personnel Cost

(R’000)Senior Management 5 9% 141 5 495 0.7%Professionally Qualified 3 6% 43 1 926 0.2%Skilled 27 51% 246 9 945 1.3%Semi-skilled 4 8% 12 589 0.1%Unskilled 14 26% 34 1 241 0.2%TOTAL 53 100% 476 19 196 2.5%

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Training Costs

Employment and Vacancies

ProgrammePersonnel

Expenditure(R’000)

Training Expenditure

(R’000)

Training Expenditure as a % of Personnel Cost

Number of Employees

Trained

Average Training Cost per Employee

(R’000)Corporate Services 9 526 286 3% 18 16Agriculture and Land Reform

6 944 145 5% 23 6

Amalienstein 696 33 2% 14 2Anhalt 1 329 12 1% 20 0.6Waaikraal 701 8 9% 10 0.8TOTAL 19 196 484 4% 85 6

Programme2012/2013 Number of Employees

2013/2014 Approved

Posts

2013/2014Number of Employees

2013/2014 Vacancies % of Vacancies

Head Office 43 46 41 5 11%Amalienstein 13 17 14 3 18%Anhalt 30 33 31 2 6%Waaikraal 11 15 11 4 27%RED Door 26 n/a n/a n/a n/aTOTAL 123 111 97 14 13%

PART D: HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE OVERSIGHT STATISTICS

Salary Band2012/2013 Number of Employees

2013/2014 Approved

Posts

2013/2014Number of Employees

2013/2014 Vacancies % of Vacancies

Senior Management 6 6 6 0 0%Professionally Qualified 4 5 4 1 20%Skilled *55 37 33 4 11%Semi-skilled 7 7 7 0 0%Unskilled 51 56 47 9 16%TOTAL 123 111 97 14 13%*RED Door programme terminated - contract expired for 26 skilled employees.

Employment Changes

Salary Band Employment at beginning of Period Appointments Terminations Employment at end of

the PeriodSenior Management 6 1 1 6Professionally Qualified *4 1 0 4Skilled 29 4 8 33Semi-skilled 7 0 0 7Unskilled 51 7 7 47TOTAL 97 13 16 97* One post was filled on contract basis until 31 March 2012. It was subsequently restructured and filled again on 1 July 2012.

Reasons for Staff Leaving Reason Number % of Total number of Staff Leaving

Death 0 0%Resignation 5 31%Dismissal 3 19%Retirement 1 6%Ill Health 0 0%Expiry of Contract 2 13%Retrenchment 5 31%TOTAL 16 100%

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Labour Relations: Misconduct and Disciplinary ActionNature of Disciplinary Action Number

Verbal Warning 1Written Warning 6Final Written Warning 29Dismissal /Desertion 3

PART D: HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE OVERSIGHT STATISTICS

Equity Target and Employment Equity Status

LevelsMale

African Coloured Indian WhiteCurrent Target Current Target Current Target Current Target

Senior Management (P1-P3)

0 0 0 0 0 0 2 1

Professional qualified (P4-P6)

1 1 1 1 0 0 2 2

Skilled (P7-P12) 2 4 13 15 0 0 4 2

Semi-skilled (P13-P16) 0 1 1 2 0 0 0 1

Unskilled (P17-P19) 0 6 43 35 0 0 0 2

TOTAL 3 12 58 53 0 0 8 8

Note: The employment level categories as prescribed by the Department of Labour for Employment Equity purposes have been utilised in these tables.

LevelsFemale

African Coloured Indian WhiteCurrent Target Current Target Current Target Current Target

Senior Management (P1-P3)

0 0 0 1 0 0 0 0

Professional qualified (P4-P6)

2 2 0 1 0 0 2 2

Skilled (P7-P12) 1 2 6 8 0 0 7 7

Semi-skilled (P13-P16) 0 1 6 5 0 0 0 1

Unskilled (P17-P19) 0 4 4 8 0 0 0 2

TOTAL 3 9 16 23 0 0 10 12

LevelsDisabled Staff

Male FemaleCurrent Target Current Target

Senior Management 0 0 0 0Professional qualified 0 0 0 0Skilled 0 0 0 0Semi-skilled 0 0 0 0TOTAL 0 0 0 0

*Due to the difficulty in employing people with disabilities as our staff travel regularly – our target for disabilities is not linked to any gender or post level. Our target is two employees.

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The directors are responsible for the preparation, integrity and fair presentation of the financial statements of Casidra SOC Limited. The financial statements presented on pages 44 to 47 have been prepared in accordance with Statements of General Accepted Accounting Practice in South Africa and in the manner required by the South African Companies Act. These are supported by reasonable and prudent judgements and estimates made by management.

The going concern basis has been adopted in preparing the financial statements. The financial position in the short term is healthy, but in the medium to long term the going concern principle is coupled directly with sufficient and timeous continued transfer funding by the state and acquisition of additional funding for current expenditure. The viability of the company is supported by the financial statements.

The directors are also responsible for the company’s system of internal financial control. These are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements and to adequately safeguard, verify and maintain accountability of the assets, as well as to prevent and detect misstatement and loss. Nothing has come to the attention of the directors to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review.

The directors acknowledge that they are ultimately responsible for the control and security of the website and for the implementation and control of the process of electronic distribution of annual reports and financial statements. These control measures and integrity of the website are not included in the audit of financial statements. Although the directors and the company

place considerable importance on maintaining a strong control environment, neither the directors, nor the auditors, can accept responsibility for changes made to the financial statements after it was initially published on the website.

The financial statements have been audited by the independent auditors, PwC Incorporated, who were given unrestricted access to all financial records and related data, including minutes of all meetings of members and the board of directors. The directors believe that all representations made to the independent auditors during their audit are valid and appropriate.

The audit report of PwC Incorporated is presented on page 43.

The financial statements for the year ended 31 March 2013 were approved by the Board of Directors and are signed on behalf of the Board by:

Adv. GA OliverChairperson of the Board 22 August 2013

Prof. E CalitzDirector22 August 2013

PART E: FINANCIAL INFORMATION - CASIDRA SOC LIMITEDSTATEMENT OF DIRECTORS’ RESPONSIBILITIES

STATEMENT OF DIRECTORS’ RESPONSIBILITIESFOR THE YEAR ENDED 31 MARCH 2013

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PART E: FINANCIAL INFORMATION - CASIDRA SOC LIMITEDREPORT OF THE INDEPENDENT AUDITOR

REPORT OF THE INDEPENDENT AUDITOR ON THE ABRIDGED FINANCIAL STATEMENTS TO THE MEMBERS OF CASIDRA SOC LIMITED FOR THE YEAR ENDED 31 MARCH 2013

The abridged financial statements, which comprise the abridged statement of financial position as at 31 March 2013, and the abridged statements of comprehensive income, changes in equity and cash flows for the year then ended, and related notes, as set out on pages 44 to 47, are derived from the audited annual financial statements of Casidra SOC Limited for the year ended 31 March 2013. We expressed an unmodified audit opinion on those annual financial statements in our report dated 22 August 2013.

The abridged financial statements do not contain all the disclosures required by SA GAAP and the requirements of the Companies Act of South Africa as applicable to annual financial statements. Reading the abridged financial statements, therefore, is not a substitute for reading the audited annual financial statements of Casidra SOC Limited.

Directors’ Responsibility for the Abridged Financial Statements

The company’s directors are responsible for the preparation of an abridged version of the audited annual financial statements in accordance with the basis described in Note 1 and the requirements of the Companies Act of South Africa as applicable to summary financial statements.

Auditor’s Responsibility

Our responsibility is to express an opinion on the abridged financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810, “Engagements to Report on Summary Financial Statements.”

Opinion

In our opinion, the abridged financial statements derived from the audited annual financial statements of Casidra SOC Limited for the year ended 31 March 2013 are consistent, in all material respects, with those annual financial statements, in accordance with the basis described in Note 1 and the requirements of the Companies Act of South Africa as applicable to summary financial statements.

PricewaterhouseCoopers IncorporatedDirector: RJ JacobsRegistered AuditorPaarl22 August 2013

For a better understanding of the company’s financial position, the results of its operations and cash flows for the year and of the scope of our audit, the abridged financial statements should be read in conjunction with the financial statements from which the abridged financial statements were derived and our audit report thereon. The detail financial statements are available at the company’s head office.

43

1. NATURE OF BUSINESS

Casidra SOC Limited is a state-owned company acting as a development agency for the Western Cape Provincial Government. In accordance with the Public Finance Management Act, Casidra has been listed as a Schedule 3D provincial government business enterprise.

The primary goal of the company is the provision of services to raise the quality of life of resource poor communities.

Supplementary goals contained in the founding statement are:

A general summary of activities and the attainment of objectives are given in the overviews contained in the annual report.

2. FINANCIAL POSITION

The financial position of the company’s business and activities are clearly indicated in the attached financial statements. During the past financial year, the company incurred net operational costs of R15,97 million (2012: R12,32 million) before transfer funding to the value of R18,70 million (2012: R10,20 million) and R2,02 million (2012: R4,50 million), including VAT, respectively from the Western Cape Departments of Agriculture and Economic Development and Tourism.

The short-term financial position is sound, but in the medium- and long-term the going concern business principle is directly linked to the continuation of sufficient and timely transfer funding from government and the obtaining of additional funding for current expenditure. The directors believe that Casidra has adequate resources in place to continue operating in the foreseeable future.

3. AUDITORS

At the annual general meeting held on 24 August 2012, the shareholder approved, in terms of section 90 (6) of the Companies Act and section 58 (3) of the Public Finance Management Act, the re-appointment of PwC Incorporated as auditors of the company until the next annual general meeting.

The Board believes that the auditors have observed the highest level of business and professional ethics. The Board is satisfied that the auditors have at all times acted with unimpaired independence.

4. SHARE CAPITAL

The authorised and issued share capital remained unchanged. The equity of the company was R29,68 million as at 31 March 2013 (2012: R26,71 million). The Western Cape Provincial Government holds the total shareholding of the company.

5. DIVIDEND

No dividend was declared or paid for the year. 6. DIRECTORS

Adv. GA Oliver (Chairperson)Prof. E CalitzMs. GM NtuliMr. JH RoosProf. JF Smith (Vice Chairperson)

The directors’ other details are reported in the Governance report.

7. PUBLIC OFFICER, COMPANY SECRETARY AND REGISTERED ADDRESS

The Public Officer and Company Secretary is Mr FJ van Zyl. The registered address of the company is:22 Louws Avenue PO Box 660SOUTHERN PAARL SOUTHERN PAARL7646 7624 8. EVENTS AFTER THE REPORTING DATE

No material facts or circumstances have arisen between the reporting date and the production of this report, which will affect the financial position of the company, as reflected in the financial statements.

poverty alleviation through broad-based economic growth and rural development; and development of human resources and capacity building.

PART E: FINANCIAL INFORMATION - CASIDRA SOC LIMITEDDIRECTORS’ REPORT

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2013

44

PART E: FINANCIAL INFORMATIONANNUAL FINANCIAL STATEMENTS

ASSETS

Non-current assetsProperty and equipmentInvestment propertyAvailable-for-sale financial assets

Current assetsTrade and other receivablesProject cash and cash equivalentsCash and cash equivalents

TOTAL ASSETS 159 693 930

159 693 930

172 856 383

172 856 383

6 439 6071 009 0004 603 056

12 051 663

1 950 165122 465 563

23 226 539

147 642 267

25 000 000 4 184 577 502 035

29 686 612

7 541 755122 465 563

130 007 318

6 183 857 1 009 000 3 802 659

10 995 516

1 059 826 142 937 333

17 863 708

161 860 867

25 000 000 3 406 831

(1 695 639)

26 711 192

3 207 858 142 937 333

146 145 191

EQUITY

Capital and reserves attributable to equity holders of the company

Issued capitalOther reservesAccumulated profit/(deficit)

TOTAL EQUITY

LIABILITIES

Current liabilitiesTrade and other payablesProject creditors

TOTAL LIABILITIES

TOTAL EQUITY AND LIABILITIES

STATEMENT OF FINANCIAL POSITIONas at 31 March 2013

2013R

2012R

45


STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 March 2013

TurnoverOther incomeProject income in respect of salaries Total incomeExpensesProject salaries

Project income in respect of project expensesProject expenses

Net operational costFunding - Department of Agriculture Western CapeFunding - Department of Agriculture Western CapeLess: Value Added TaxFunding - Department of Economic Development and Tourism Western Cape Funding - Department of Economic Development and Tourism Western CapeLess: Value Added Tax

Net profit before taxationTaxation

SURPLUS FOR THE YEAR

OTHER COMPREHENSIVE INCOME Available-for-sale financial assets Other comprehensive income for the year Total comprehensive income for the year

3 300 8192 848 163

10 618 680

16 767 662(18 473 446)(10 618 680)

(12 324 464)-

173 764 518(173 764 518)

(12 324 464)8 947 369

10 200 000 (1 252 631)

3 947 368

4 500 000 ( 552 632)

570 273 -

570 273

309 042

309 042

879 315

2013R

2012R

1 628 0562 286 9503 015 281

6 930 287(19 891 893)

(3 015 281)

(15 976 887)-

137 264 840(137 264 840)

(15 976 887)16 403 508 18 700 000 (2 296 492)

1 771 053

2 019 000 ( 247 947)

2 197 674 -

2 197 674

777 746

777 746

2 975 420

46

Sharecapital

R

Fair valuereserve

R

Accumulated(deficit) /

ProfitR

TotalR

Balance at 1 April 2011Fair value adjustments of available-for-sale financial assetsNet surplus for the year

25 000 000

--

3 097 789

309 042-

(2 265 912)

-570 273

25 831 877

309 042 570 273

Balance at 31 March 2012 25 000 000 3 406 831 (1 695 639) 26 711 192

Balance at 1 April 2012Fair value adjustments of available-for-sale financial assetsNet surplus for the year

25 000 000

--

3 406 831

777 746-

(1 695 639)

-2 197 674

26 711 192

777 746 2 197 674

Balance at 31 March 2013 25 000 000 4 184 577 502 035 29 686 612

2013R

2012R

Cash flow from operating activitiesCash generated / (utilised) by activities

Cash flow from investment activitiesPurchase of property and equipmentProceeds from sale of property and equipmentIncrease in available-for-sale financial assetsInterest received Dividends received

Cash generated by investing activities

Net movement in cash and cash equivalentsCash and cash equivalents at 1 April Cash and cash equivalents at 31 March

4 145 362

( 670 435) 68

( 22 651)1 833 444

77 043

1 217 469

5 362 831 17 863 708

23 226 539

(1 535 748)

( 319 183) 133 601 ( 13 366)

2 274 043 57 468

2 132 563

596 815 17 266 893

17 863 708

STATEMENT OF CASH FLOWSfor the year ended 31 March 2013

STATEMENT OF CHANGES IN EQUITYfor the year ended 31 March 2013

20122013


47

“WeDeliverProjectManagementExcellence”

Together for Rural and Economic Development

Head Office: Regional Office:22 Louws Avenue

SOUTHERN PAARL,7646

Tel: (021) 863 5000Fax: (021) 863 1055

Email: [email protected]

Fairview Office Park, Block 51st Street, GEORGE,

6529

Tel: (044) 871 0134Fax: (044) 871 4230

www.casidra.co.za

CASIDRA SOC LIMITED Registration number: 1973/006186/07

FINANCIAL STATEMENTS· 31 MARCH 2013

CASIDRA SOC LIMITED Registration number: 1973/006186/07

FINANCIAL STATEMENTS for the year ended 31 March 2013

DIRECTORS

Chairperson Non - executive Non - executive

Committee

Executive and Remuneration Audit & risk Audit & risk and Nomination

Adv GA Oliver Prof E Calitz Ms GM Ntuli Mr JH Roos Non- executive Audit & risk, Executive, Nomination

and Remuneration Prof JF Smith Vice Chairperson Executive, Nomination and

Remuneration

REGISTERED ADDRESS

22 Louws Avenue SOUTHERN PAARL 7646

PUBLIC OFFICER

Mr FJ van Zyl

AUDITORS

PwC Incorporated PricewaterhouseCoopers Building Zomerlust Estate, Berg River Boulevard PAARL, 7646

CONTENTS

Statement of directors' responsibilities Report of the independent Auditors Directors' report Statement of financial position Statement of comprehensive income Statement of changes in equity Statement of cash flows Notes to the financial statements Detailed statement of comprehensive income

POSTAL ADDRESS

PO Box 660 SOUTHERN PAARL 7624

POSTAL ADDRESS

PO Box 215 PAARL 7620

PAGE

1 2 - 4 5-6

7 8 9 10

11 - 36 37-38

Notice in terms of Section 29 of the Companies Act, 2008 (the Act) These annual financial statements have been audited in compliance with the Act. These annual financial statements have been prepared by Mr FJ van Zyl CA (SA).

Appointed

31/08/1999 13/05/2011 28/08/2008

27/08/2009 29/05/2002

CASIDRA SOC LIMITED

STATEMENT OF DIRECTORS' RESPONSIBILITIES for the year ended 31 March 2013

The directors are responsible for the preparation, integrity and fair presentation of the financial statements of Casidra SOC Limited. The financial statements presented on pages 5 to 36 have been prepared in accordance with Statements of General Accepted Accounting Practice in South Africa and in the manner required by the South African Companies Act. These are supported by reasonable and prudent judgements and estimates made by management.

The going concern basis has been adopted in preparing the financial statements. The financial position in the short term is healthy, but in the medium to long term the going concern principle is coupled directly with sufficient and timely continued transfer funding by the state and acquisition of additional funding for current expenditure. The viability of the Company is supported by the financial statements.

The directors are also responsible for the Company's system of internal financial control. These are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements and to adequately safeguard , verify and maintain accountability of the assets, as well as to prevent and detect misstatement and loss. Nothing has come to the attention of the directors to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review.

The directors acknowledge that they are ultimately responsible for the control and security of the website and for the implementation and control of the process of electronic distribution of annual reports and financial statements. These control measures and integrity of the website are not included in the audit of financial statements. Although the directors and the Company place considerable importance on maintaining a strong control environment, neither the directors, nor the auditors, can accept responsibility for changes made to the financial statements after it was initially published on the website.

The financial statements have been audited by the independent auditors, PwC Incorporated, who were given unrestricted access to all financial records and related data, including minutes of all meetings of members and the board of directors. The directors believe that all representations made to the independent auditors during their audit are valid and appropriate.

The audit report of PwC Incorporated is presented on pages 2 to 4.

The financial statements for the year ended 31 March 2013 were approved by the board of directors and are signed on behalf of the board by:

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pwc

INDEPENDENT AUDITOR'S REPORT TO THE

WESTERN CAPE PROVINCIAL PARLIAMENT ON CASIDRA SOC LIMITED

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. We have audited the financial statements of Casidra SOC Limited as set out on pages 5 to 36, which comprise the statement of financial position as at 31 March 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Board of directors' responsibility for the financial statements

2. The board of directors which constitute the accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with South African Statements of Generally Accepted Accounting Practice (SA Statements of GAAP) and in the requirements of the Public Finance Management Act of South Africa , 1999 (Act No.1 of 1999) (PFMA) and the Companies Act of South Africa, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Public Audit Act of South Africa, the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend 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 control 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 management, as well as evaluating the overall presentation of the financial statements.

~- ... ..... ...... . ... . ..... '.. .. .......... .. . ................ "" ............ ' ········ . . ..... ··········· .... . ... ' ' ......................... ' ................................ .

PricewaterhouseCoopers Inc, PricewaterhouseCoopers Building, Zomerlust Estate, Berg River Boulevard, Paarl 7646, P 0 Box 215, Paarl 7620 T: +27(21) 807 7100, F: +27(21) 807 7200j 1, www.pwc.co.za

Afrka Senior Partner. S P Kan•

Management Committee: H Boegman, T P Blandin de Chalain, B M Deegan, J G Louw, P J Mothlbe, NV Mtetwa, T D Shango, S Subramoney, A R Tilakda~. F Tonelli Westem Cape region- Partner In charge: D J Fiilscher The Company's principal place of business Is at 2 Eglin Road, SuMinghiU -Mlere a list of directors' names is avaUable for inspection. Reg. no. 1998/012055/21, VAT reg.no. 4950174682.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, the financial statements present fairly, in all material respects, the financial position of Casidra SOC Limited as at 31 March 2013, and its financial performance and cash flows for the year then ended in accordance with SA Statements of GAAP and the requirements of the PFMA and the Companies Act of South Africa.

Additional matter

7. We draw attention to the matter below. Our opinion is not modified in respect of this matter:

Unaudited supplementary schedules

8. The supplementary information set out on pages 37 to 38 does not form part of the financial statements and is presented as additional information. We have not audited these schedules and accordingly we do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

9. In accordance with the PAA and in terms of General Notice, issued in terms thereof, we report the following findings relevant to the performance against predetermined objectives, compliance with laws and regulations and internal control but not for the purpose of expressing an opinion.

Predetermined objectives

10. We performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 21 to 26 of the annual report.

11 . The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

12. The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).

13. There were no material findings on the annual performance report concerning the usefulness and reliability of the information.

-3-

Additional matter

14. Although no material findings concerning the usefulness and reliability of the performance information were identified in the annual performance report, we draw attention to the matter below.

Achievement of planned targets

15. Of the total number of planned targets, only 29 were achieved during the year under review. This represents 22% of total planned targets that were not achieved during the year under review. This was mainly due to the fact that programmes came to an earlier conclusion than planned which was decided by the Western Cape Department of Economic Development and Tourism.

Compliance with laws and regulations

16. We performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters.

17. We did not identify any instances of material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA.

Internal Control

18. We considered internal control relevant to our audit of the financial statements, the annual performance report and compliance with laws and regulations.

19. We did not identify any deficiencies in internal control which we considered sufficiently significant for inclusion in this report.

fnuwo;crhaue(cq>eU me. PricewaterhouseCoopers Inc. Director: R J Jacobs Registered Auditor Paarl

22 August 2013

- 4 -

CASIDRA SOC LIMITED

DIRECTORS' REPORT for the year ended 31 March 2013

1. Nature of Business

Casidra SOC Limited is a state-owned company acting as a development agency for the Western Cape Provincial Government. In accordance with the Public Finance Management Act, Casidra has been listed as a Schedule 3D provincial government business enterprise.

The primary goal of the company is the provision of services to raise the quality of life of resource poor communities.

Supplementary goals contained in the founding statement are: • poverty alleviation through broad-based economic growth and rural

development; and • development of human resources and capacity building.

A general summary of activities and the attainment of objectives are given in the overviews contained in the annual report.

2. Financial position

The financial position of the company's business and activities are clearly indicated in the attached financial statements. During the past financial year, the company incurred net operational costs of R15,97 million (2012: R12,32 mill ion) before transfer funding to the value of R18,70 million (2012: R10,20 million) and R2,02 million (2012: R4,50 million), including VAT, respectively from the Western Cape Departments of Agriculture and Economic Development and Tourism.

The short-term financial position is sound, but in the medium- and long term the going concern business principle is directly linked to the continuation of sufficient and timely transfer funding from government and obtaining of additional funding for current expenditure. The Directors believe that Casidra has adequate resources in place to continue to operate in the foreseeable future.

3. Auditors

At the annual general meeting held on 24 August 2012 the shareholder approved, in terms of Section 90 (6) of the Companies Act and Section 58 (3) of the Public Finance Management Act, the re-appointment of PwC Incorporated as auditors of the company until the next annual general meeting.

The Board believes that the auditors have observed the highest level of business and professional ethics. The Board is satisfied that the auditors have at all times acted with unimpaired independence.

-5-

CASIDRA SOC LIMITED

DIRECTORS' REPORT for the year ended 31 March 2013

4. Share Capital

The authorised and issued share capital remained unchanged. The equity of the company was R29,68 million as at 31 March 2013 (2012: R26,71 million). The Western Cape Provincial Government holds the total shareholding of the company.

5. Dividend

No dividend was declared or paid for the year.

6. Directors

Adv Prof Ms Mr Prof

GA Ol iver E Calitz GM Ntuli JH Roos JF Smith

(Chairperson)

(Vice Chairperson)

The directors' other details are reported in the Governance report.

7. Public Officer, Company Secretary and Registered address

The Public Officer and Company Secretary is Mr. FJ van Zyl. The registered address of the company is:

22 Louws Avenue SOUTHERN PAARL 7646

8. Post reporting date events

PO Box 660 SOUTHERN PAARL 7624

No material facts or circumstances have arisen between the reporting date and the production of this report, which will affect the financial position of the company as is reflected in the financial statements.

-6-

CASIDRA SOC LIMITED

STATEMENT OF FINANCIAL POSITION at 31 March 2013

2013 2012 Notes R R

ASSETS

Non-current assets Property and equipment 5 6 439 607 6 183 857 Investment property 6 1 009 000 1 009 000 Available-for-sale financial assets 9 4 603 056 3 802 659

12 051 663 10 995 516

Current assets Trade and other receivables 10 1 950 165 1 059 826 Project cash and cash equivalents 19 122 465 563 142 937 333 Cash and cash equivalents 11 23 226 539 17 863 708

147 642 267 161 860 867

Total assets 159 693 930 172 856 383

EQUITY

Capital and reserves attributable to equity holders of the company Issued capital 12 25 000 000 25 000 000 Other reserves 4 184 577 3 406 831 Accumulated profit/( deficit) 502 035 (1 695 639)

Total equity 29 686 612 26 711 192

LIABILITIES

Current liabilities Trade and other payables 13 7 541 755 3 207 858 Project creditors 19 122 465 563 142 937 333

Total liabilities 130 007 318 146 145 191

Total equity and liabilities 159 693 930 172 856 383

-7-

CASIDRA SOC LIMITED

STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 March 2013

Turnover Other income Project income in respect of salaries

Total income Expenses Project salaries

Project income in respect of project expenses Project expenses

Net operational cost Funding - Department of Agriculture Western Cape Funding- Department of Agriculture Western Cape Less: Value Added Tax Funding - Department of Economic Development and Tourism Western Cape Funding - Department of Economic Development and Tourism Western Cape Less: Value Added Tax

Net profit before taxation Taxation

Net surplus for the year

OTHER COMPREHENSIVE INCOME

Available-for-sale financial assets

Other comprehensive income for the year

Total comprehensive income for the year

-8-

Notes

14

15

19 19

16

2013 R

1 628 056 2 286 950 3 015 281

6 930 287 (19 891 893)

(3015281)

(15 976 887)

137 264 840 (137 264 840)

(15 976 887) 16 403 508 18 700 000 (2 296 492)

1 771 053

2 019 000 ( 247 947)

2 197 674

2 197 674

777 746

777 746

2 975 420

2012 R

3 300 819 2 848 163

10 618 680

16 767 662 (18 473 446) (10618680)

(12 324 464)

173 764 518 (173 764 518)

(12 324 464) 8 947 369

10 200 000 (1 252 631)

3 947 368

4 500 000 ( 552 632)

570 273

570 273

309 042

309 042

879 315

CASIDRA SOC LIMITED

STATEMENT OF CHANGES IN EQUITY for the year ended 31 March 2013

Accumu-Fair Ia ted

Share value (deficit)/ Capital reserve profit Total

2012 R R R R

Balance at 1 April 2011 25 000 000 3 097 789 (2 265 912) 25 831 877 Fair value adjustments of available-for-sale financial assets 309 042 309 042 Net surplus for the year 570 273 570 273

Balance at 31 March 2012 25 000 000 3 406 831 (1 695 639) 26711192

2013

Balance at 1 April 2012 25 000 000 3 406 831 (1 695 639) 26 711 192 Fair value adjustments of available-for-sale financial assets 777 746 777 746 Net surplus for the year 2 197 674 2 197 674

Balance at 31 March 2013 25 000 000 4 184 577 502 035 29 686 612

-9-

CASIDRA SOC LIMITED

STATEMENT OF CASH FLOWS for the year ended 31 March 2013

Cash flow from operating activities Cash generated/(utilised) by operating activities

Cash flow from investment activities Purchase of property and equipment Proceeds from sale of property and equipment Increase in available-for-sale financial assets Interest received Dividends received

Cash generated by investing activities

Net movement in cash and cash equivalents Cash and cash equivalents at 1 April

Cash and cash equivalents at 31 March

-10-

Notes

17

18 17

11

2013 R

4 145 362

( 670 435) 68

( 22 651) 1 833 444

77 043

1 217 469

5 362 831 17 863 708

23 226 539

2012 R

(1 535 748)

( 319 183) 133 601 ( 13 366)

2 274 043 57 468

2 132 563

596 815 17 266 893

17 863 708

CASIDRA SOC LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2013

1. GENERAL INFORMATION

Casidra SOC Limited is acting as a development agency for the Provincial Government Western Cape. In accordance with the Public Finance Management Act, Casidra has been listed as a Schedule 30 provincial government business enterprise.

The company is a state-owned company incorporated and domiciled in South Africa. The address of its registered office is 22 Louws Avenue, Southern Paarl.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The financial statements of Casidra SOC Limited have been prepared in accordance with Statements of General Accepted Accounting Practice in South Africa (SA GAAP). The financial statements have been prepared according to the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and financial liabilities at fair value through profit and loss.

The preparation of financial statements in conformity with SA GAAP requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4.

(a) Standards, amendments and interpretations effective 2013 and relevant to the entity

The following standards, amendments and interpretations to existing standards are mandatory for the Company's accounting periods beginning on or after 1 April 2012:

Amendments to I FRS 1, 'First time adoption' on hyperinflation and fixed dates (effective 1 July 2011).

Amendment to IFRS 7 Financial Instruments: Disclosures - Transfer of financial assets (effective 1 July 2011).

Amendment to lAS 12, 'Income taxes' on deferred tax (effective 1 January 2012).

-11-

CASIDRA SOC LIMITED


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.1 Basis of preparation (continued)

(b) Standards, amendments and interpretations effective in 2013 but not relevant

Amendment to IFRS 1, 'First time adoption' on government loans (effective 1 January 2013).

Amendment to IFRS 7 Financial Instruments: Disclosures - Asset and Liability offsetting (effective 1 January 2013).

Amendments to lAS 1, 'Presentation of Financial Statements', on presentation of items of OCI (effective 1 July 2012).

lAS 19, "Employee benefits" (effective 1 January 2013).

IFRS 9- Financial Instruments (2009) (effective 1 January 2013).

I FRS 9- Financial Instruments (201 0) (effective 1 January 2013).

Amendments to I FRS 9- Financial Instruments (2011) (effective 1 January 2015).

I FRS 10 - Consolidated financial statements (effective 1 January 2013).

I FRS 11 -Joint arrangements (effective 1 January 2013).

IFRS 12- Disclosures of interests in other entities (effective 1 January 2013).

I FRS 13- Fair value measurement (effective 1 January 2013).

lAS 27 (revised 2011)- Separate financial statements (effective 1 January 2013).

lAS 28 (revised 2011)- Associates and joint ventures (effective 1 January 2013).

Amendments to lAS 32 - Financial Instruments: Presentation (effective 1 January 2014).

Amendment to the transition requirements in IFRS 10, 'Consolidated financial statements', IFRS 11, 'Joint Arrangements', and IFRS 12, 'Disclosure of interests in other entities' (effective 1 January 2013).

-12-

CASIDRA SOC LIMITED



2.2 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in South African Rand (R), which is the company's functional and presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency (ZAR) using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at yearend exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.

2.3 Property and equipment

Buildings consist mainly of offices.

All property and equipment are stated at historical cost less accumulated depreciation , taking into account the residual value. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Land is not depreciated. On the fo llowing, depreciation is calculated on the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives:

Buildings Office furniture and equipment Vehicles Computers

-13-

50 years 5 - 10 years 4 - 15 years 3 - 5 years

CASIDRA SOC LIMITED



2.3 Property and equipment (continued)

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of comprehensive income.

When revalued assets are sold, the amounts included in other reserves are transferred to retained earnings.

2.4 Investment property

Investment property comprising of an office building, residential property and a building for storage purposes is held for long-term rental yie lds and is not occupied by the company. Investment property is carried at cost less accumulated depreciation.

All investment property are stated at historical cost less accumulated depreciation, taking into account the residual value. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives. The useful life is 50 years.

2.5 Impairment of non-financial assets

Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets, other than goodwill, that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

-14-

CASIDRA SOC LIMITED



2.6 Financial assets

2.6.1 Classification

The company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables and available for sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date.

(a) Financial assets through profit and loss

This category has two sub-categories: 'financial assets held for trading', and those designated at fair value through profit or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management.

Derivatives are also categorised as 'held for trading ' unless they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the reporting date.

(b) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the reporting date. These are classified as non-current assets. Loans and receivables are classified as 'trade and other receivables' in the statement of financial position.

(c) Available-for-sale financial assets

Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the reporting date.

2.6.2 Recognition and measurement

Regular purchases and sales of investments are recognised on trade-date - the date on which the company commits to purchase or sell the asset. Investments are initially

-15-

CASIDRA SOC LIMITED



2.6 Financial assets (continued)

recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the statement of comprehensive income.

Investments are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the company has transferred substantially all risks and rewards of ownership. Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.

Gains or losses arising, from changes in the fair value of the 'financial assets at fair value through profit or loss' category, including interest and divided income, are presented in the statement of comprehensive income within 'other (losses)/gains - net', in the period in which they arise.

When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in equity are included in the statement of comprehensive income as 'gains and losses from investment securities'. Interest on available-for-sale securities calculated using the effective interest method is recognised in the statement of comprehensive income.

Dividends on available-for-sale equity instruments are recognised in the statement of comprehensive income when the company's right to receive payments is established.

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active, the company establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models, making maximum use of market inputs and relying as little as possible on entity-specific inputs.

The financial assets are assessed at each reporting date to determine whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the

-16-

CASIDRA SOC LIMITED



2.6 Financial assets (continued)

current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity and recognised in the statement of comprehensive income. Impairment losses recognised in the statement of comprehensive income on equity instruments are not reversed through the statement of comprehensive income. Impairment testing of trade receivables is described in note 2.7.

2. 7 Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired.

The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the statement of comprehensive income.

2.8 Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.

2.9 Share capital

Ordinary shares are classified as equity.

2.10 Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of comprehensive income over the period of the borrowings using the effective interest method.

-17-

CASIDRA SOC LIMITED



2.10 Borrowings (continued)

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

2.11 Deferred income tax

The current income tax charge is calculated on the basis of tax laws enacted or substantively enacted at the reporting date in countries where the company's subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establish provisions, where applicable, on the basis of amounts expected to be paid to tax authorities.

Deferred income tax is provided in full, using the liabi lity method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Deferred income tax is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred tax assets relating to the carry forward of unused tax losses are recognised to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.

2.12 Trade payables

Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

2.13 Provisions

Provisions are recognised when: · the company has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation ; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

-18-

CASIDRA SOC LIMITED



2.13 Provisions (continued)

Where there are a number of similar obligations, the likelihood that an O!Jtflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

2.14 Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the company's activities. Revenue is shown net of Value Added Tax, returns, rebates and discounts and after eliminating sales within the company. Revenue is recognised as follows:

(a) Sale of goods

Sale of goods are recognised when the company has delivered products to the customer, the customer has accepted the products and collectability of the related receivables is reasonably assured. Accumulated experience is used to estimate and provide for such returns at the time of sale.

(b) Rendering of services

Rendering of services are recognised in the accounting period in which the services are rendered , by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total service to be provided.

(c) Interest income

Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the company reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised using the original effective interest rate.

-19-

CASIDRA SOC LIMITED



2.14 Revenue recognition (continued)

(d) Dividend income

Dividend income is recognised when the right to receive the payment is established.

2.15 Lease

Leases in which a significant portion of the risks and rewards of ownership are reta ined by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of comprehensive income on a straight-line basis over the period of the lease.

2.16 Dividend distribution

Dividend distribution to the company's shareholders is recognised as a liability in the company's financial statements in the period in which the dividends are approved by the company's shareholders.

3. FINANCIAL RISK MANAGEMENT

3.1 Financial risk factors

The company's activities expose it to a variety of financia l risks: market risk (including currency risk and price risk), credit risk, liquidity risk, fair value cash flow risk and fair value interest rate risk. The company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the company's financial performance.

The Board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and the investment of excess liquidity.

(a) Market risk

(i) Foreign exchange risk

The company does not operate internationally and is not exposed to foreign exchange risk arising from various currency exposures.

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CASIDRA SOC LIMITED


3. FINANCIAL RISK MANAGEMENT (continued)

(a) Market risk (continued)

(ii) Price risk

Other than exposure to investments in equity of other entities the company is not subject to other material price risks.

The effect of a 5% increase/( decrease) in the fair value of the company's available-for· sale financial assets on the company's equity would be a follows:

Effect on equity

Increase of 5%, equity will increase with Decrease of 5%, equity will decrease with

(b) Credit risk

2013 R

230 153 ( 230 153)

2012 R

190 133 ( 190 133)

The company has a low concentration of credit risk. The company has no credit facility and has policies that limit the amount of credit exposure to any financial institution. Funds are invested with reputable financial establishments.

(c) Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company's approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities, when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities. The company aims to maintain flexibility in funding by keeping committed credit lines available.

Cash flow requirements are monitored with monthly cash forecasts which includes the servicing of financial obligations, but excludes the potential impact of extreme circumstances that cannot be reasonably predicted.

The company's financial liabilities are limited to trade and other payables which are repayable within 12 months.

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CASIDRA SOC LIMITED


3. FINANCIAL RISK MANAGEMENT (continued)

(d) Cash flow and fair value interest rate risk

The company is exposed to cash flow interest rate risk in South Africa that arises from changes in the SA Reserve Bank's repo rate.

The company's financial assets subject to interest rate risk include cash and shortterm bank deposits that are invested at variable rates.

Refer to note 7.1 for the disclosure of the company's exposure to interest rate risks and the effective interest rate on financial instruments as at reporting date.

The company earns interest on cash and short term bank deposits. If the interest rate should change by 0,5% (all other factors remaining unchanged) the effect on profit would be as follows:

Effect on profit

Increase of 0,5%, profit will increase with Decrease of 0,5%, profit will decrease with

(e) Capital risk management

2013 R

183 344 ( 183 344)

2012 R

252 671 ( 252 671)

The company's objectives when managing capital are to safeguard the company's ability to continue as a going concern in order to provide benefits for the shareholder and other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

3.2 Fair value estimation

The following table presents and analyses, by valuation method, the company's assets that are measured at fair value.

Available-for-sale financial assets

Unadjusted quoted prices in active market for identical assets Inputs observable for the assets directly as the prices At a nominal value

-22-

2013 R

3 358 652 1 244 402

2

4 603 056

2012 R

2 749 511 1 053 146

2

3 802 659

CASIDRA SOC LIMITED


3.2 Fair value estimation (continued)

The fair value of financial instruments traded in active markets (such as trading and available-for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the company is the current bid price, except for Aquaharvest Limited and Thembeka Social Investment disclosed at a nominal value of R1.

The nominal values less impairment prov1s1on of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the company for similar financial instruments.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

4.1 Critical accounting estimates and assumptions

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a) Property and equipment

Depreciation on assets is calculated over their estimated useful lives, taking into account the residual value of the asset at the end of its useful life.

Certain office furniture and equipment is expected to remain in use for longer than ten years from the date of purchase. As a result, the expected useful lives of these assets increased and their estimated residual values may decrease. The effect of these changes on the actual and expected depreciation in the current and future periods is not disclosed because estimating the expense is impracticable.

4.2 Critical judgements in applying the entity's accounting policies

Management did not make any critical judgements in applying the entity's accounting policies.

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CASIDRA SOC LIMITED


5. PROPERTY AND EQUIPMENT

2012

Carrying value at 1 Apri l 2011 Cost Accumulated depreciation

Additions

Disposals and transfers Cost Accumulated depreciation

Furniture Land and and buildings Vehicles equipment Computers

R R R R

5 000 387 409 203 278 523 724 850

1

5 000 38~ I 973 457 1 052 371 1 684 815

( 564 254) ( 773 848) ( 959 965)

200 000 9 799 109 384

- (1 16401) ( 34) ( 31)

I ~ I ( 350 609) ( 19 056) ( 196 366) 234 208 19 022 196 335

Total R

6 412 963 8 711 030

(2 298 067)

319 183

( 116 466) ( 566 031)

449 565

Depreciation (56 702) ( 77951) ( 297 170) ( 431 823)

Carrying value at 31 March 2012 5 000 387

Cost I 5 000 387- 1 Accumulated depreciation _

2013

Carrying value at 1 April 2012 Cost Accumulated depreciation

Additions

Disposals and transfers Cost Accumulated depreciation

Depreciation

5 000 387

1

5 000 38~ I

Carrying value at 31 March 2013 5 000 387

'-----'- ----C....LJ

436 100 822 848

( 386 748)

145 000

( 80 900)

210 337 1 043114 _( 832 777)

77 265

(90071 )

537 033 1 597 833 1 060 800

6 183 857 8 464 182 2 280 325

537 033 6 183 857 1 597 833

(1 060 800)

448 170

8 464 182 2 280 325

670 435

( 163 915) ( 334 886)

Cost I 5 000 387- 1 Accumulated depreciation _ _ '------'-- ----L-1 .______, __ ____._. L--~=-=--=-=--~

6 439 607 8 449 939 2 010 332

Land and buildings consist of erven 26168 (4 228m2) , title deed T52255/2008, 3163 (569m2

) and 3164 (558m2), title deed T54412/1998, situated in the Paarl Municipality and the buildings there on . The property and equipment are not mortgaged. Refer note 4.1 (a) regarding a change in estimates.

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CASIDRA SOC LIMITED


6. INVESTMENT PROPERTY

7.1

Balance end of the year

The property consists of buildings erected on erf 26 168 as described in note 5.

The investment property is not mortgaged and the fair value, based on replacement values, is R7,3 million.

Rental income

FINANCIAL INSTRUMENTS BY CATEGORY

The accounting policies for financial instruments have been applied to the line items below.

Assets as per statement of financial position Interest rate%

Loans and receivables 2013

Trade and other receivables 0 - 5,00 Project cash and cash equivalents 0 - 4,98 Cash and cash equivalents 0-4,98

Total

Liabilities as per statement of financial position

Other financial liabilities

Trade and other payables Project creditors

Total

0-4,00

2012

0- 5,00 0 -4,50 0-4,50

0-4,00

7.2 CREDIT QUALITY OF FINANCIAL ASSETS

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

-25-

2013 R

1 009 000

346 805

1 950 165 122 465 563 23 226 539

147 642 267

7 541 755 122 465 563

130 007 318

2012 R

1 009 000

480 721

1 059 826 142 937 333

17 863 708

161 860 867

3 207 858 142 937 333

146 145 191

CASIDRA SOC LIMITED


7.2 CREDIT QUALITY OF FINANCIAL ASSETS (continued)

Trade and other receivables Counterparties without external credit rating: Between 0 and 6 months:

8. LOANS GRANTED

9.

Waaikraa l Waaikraal project loan Less: Provision

Loans granted are unsecured, do not carry interest (2012 : 0%) and are repayable over periods which varies from one to thirteen months.

AVAILABLE-FOR-SALE FINANCIAL ASSETS

Number 41 741 Pioneer Food Group Limited

7 333 Sanlam Limited 9 192 Capespan Group Limited

Listed securities

3 765 Agri Voedsel Limited 3 765 Kaap Agri Limited 9 279 (2012: 9 031) Nedgroup Growth fund unit trust

10 000 Aquaharvest Limited 2 675 (2012: 2 604) Old Mutual unit trust 1 000 Tembeka Social Investment company Limited

11 980 Tuinroete Agri Limited

Unlisted securities

Tota l securities

-26-

2013 R

1 950 165

2 987 403 345 971 25 278

3 358 652

223 076 49 924

168 223 1

768 557 1

34 622

1 244 404

4 603 056

2012 R

1 059 826

2 483 590 243 309 22 612

2 749 511

193 897 30120

148 945 1

651 432 1

28 752

1 053 148

3 802 659

CASIDRA SOC LIMITED


9. AVAILABLE-FOR-SALE FINANCIAL ASSETS (continued)

At 1 April Additions Fair value adjustment to equity

Non-current portion

The maximum exposure to credit risk at the reporting date is the carrying value of the total securities available for sale. None of these financial assets is either past due or impaired.

10. TRADE AND OTHER RECEIVABLES

Projects SARS- VAT Sundry debtors

Current portion

As of 31 March the following trade receivables were past due but not impaired: Up to 3 months 3 to 6 months

The carrying values equal the fair values.

11. CASH AND CASH EQUIVALENTS

Cash in bank Cash on hand and deposits

12. SHARE CAPITAL

At 31 March

Number of

shares

Ordinary shares

R

25 000 000 25 000 000

The total authorised number of ordinary shares is 25 000 000 (2012: 25 000 000). All issued shares are fully paid-up.

-27-

2013 2012 R R

3 802 659 3 480 251 22 651 13 366

777 746 309 042

4 603 056 3 802 659

1 357 838 737 697 350 175 63 715 242 152 258 414

1 950 165 1 059 826

677 740 313 600 233 247 16 454

910 987 330 054

23 221 019 17 859 188 5 520 4 520

23 226 539 17 863 708

25 000 000 25 000 000

CASIDRA SOC LIMITED


13. TRADE AND OTHER PAYABLES

Bonus and leave provision Balance at the beginning of the year Movement for the year Sundry creditors Personnel fund Projects

14. OTHER INCOME

Bad debt recovered Commission received Dividends received Interest received Profit on disposal of property and equipment Rent received

15. EXPENSES BY NATURE

Auditors' remuneration Depreciation Directors' remuneration (refer Annexure A) Loss on property and equipment scrapped Maintenance Other Personnel expenses Personnel expenses - Prescribed officers (refer Annexure A) Remuneration paid to non-employees Rental paid

-28-

2013 2012 R R

994 991 900 400

900 400 I 713 149 187 251 94 591

4 339 455 117 197 7 159 5 847

2 200 150 2 184 414

7 541 755 3 207 858

1 256 11 266 531 2 231

77 043 57 468 1 833 444 2 274 043

56 17 140 374 620 486 015

2 286 950 2 848 163

280 000 255 150 334 886 431 823

84 202 77 594 79 787 5 135 233 106 953

4 007 895 6 834 613 12 343 429 8 125 430

2 431 276 2 493 250 99 858 51 700 95 327 96 928

19891893 18 473 446

CASIDRA SOC LIMITED


2013 2012 16. TAXATION R R

No provision is made for income tax due to the company having a calculated tax loss of R41 0 327 (2012: R2 637 598).

17. CASH GENERATED/(UTILISED) BY OPERATIONS

Surplus for the year 2 197 674 570 273 Depreciation 334 886 431 824 Loss on property and equipment scrapped 79 787 5 Profit on disposal of property and equipment ( 56) ( 17 140) Investment income (1 910 487) (2 331 511)

Operating profit/( deficit) before changes in working capital 701 804 (1 346 549)

Changes in working capital (lncrease)/decrease in trade and other receivables ( 890 339) 732 423 Increase/( decrease) in trade and other payables 4 333 897 ( 921 622)

Changes in working capital 3 443 558 { 189 199)

Cash generated/(utilised) by activities 4 145 362 {1 535 748)

In the cash flow statement, proceeds from sale of property and equipment comprise:

Net carrying value 79 799 116 466 Profit on disposal of property and equipment 56 17 140 Loss on property and equipment scrapped ( 79 787) { 5)

Proceeds from sale of property and equipment 68 133 601

18. PURCHASE OF PROPERTY AND EQUIPMENT

Computers 448 170 109 384 Furniture and equipment 77 265 9 799 Vehicles 145 000 200 000

670 435 319 183

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CASIDRA SOC LIMITED


19. MANAGED PROJECTS

Casidra managed the administration of the following projects and the projects' cumulative receipts and payments are as follows:

Project name and funder Balance Received Internal Other Projects completed Utilised Balance PDA 2012-03-31 from funders transfers income previous year 2013 2013-03-31 GASP Agriculture - available 3 213 140 4 000 890 PDA - Western Cape and interest 11 705 397 3 173 985 - 37 840 - - - 14 917 222 Items expensed (8 492 257) - - - - - (2 424 075) (10 916 332) GASP Cape Winelands - available 12 373 798 19 973 994 PDA - Western Cape and interest 14 556 626 18 000 000 (1 576 000) 843 357 - - - 31 823 983 Items expensed (2 182 828) - - - - - (9 667 161) (11 849 989) GASP Cape Winelands - completed PDA - Western Cape and interest 16 983 845 - - - (16 983 845) - ~ I ~ I Items expensed (16 983 845) - - - - 16 983 845 GASP Central Karoo - available 6 022 395 7 046 193 PDA- Western Cape and interest 8 790 208 4 180 000 (1 197 438) 235 220 - - - 12 007 990 Items expensed (2 767 813) - 2 767 813 - - - (4 961 797) (4 961 797) GASP Central Karoo - completed PDA- Western Cape and interest 13 193 069 - 8 790 208 - (13 193 069) - - 8 790 208 Items expensed (13 193 069) - (2 767 813) - - 13 193 069 (6 022 395) (8 790 208) GASP Eden Karoo - available 1 223 674 398 313 PDA - Western Cape and interest 9 884144 450 000 (9 884 144) 39 787 - - - 489 787 Items expensed (8 660 470) - 8 660 470 - - - ( 91 474) ( 91 474) GASP Eden Karoo - completed PDA- Western Cape and interest I ~ I 9 884 144 - - - - 9 884 144 Items expensed - (8 660 470) - - - (1 223 674) (9 884 144) GASP Interest- available 463 767 774 362 PDA- Western Cape and interest 1 929 486 - 2 070 514 131 146 - - - 4 131 146 Items expensed (1 465 719) - 1 465 719 - - - (3 356 784) (3 356 784) GASP Interest- completed PDA - Western Cape and interest 57 481 - 1 929 486 - (57 481) - - 1 929 486 Items expensed (57 481) - (1 465 719) - - 57 481 ( 463 767) (1 929 486) GASP Winelands!Overberg - available 37 433 694 43 921 110 PDA - Western Cape and interest 39 984 267 38 367 000 (6 800 000) 3 289 947 - - - 74 841 214 Items expensed (2 550 573) - - - - - (28 369 531) (30 920 104) GASP Winelands!Overberg - completed PDA - Western Cape and interest 40 833 020 - - - (40 833 020) - ~I ~ I Items expensed (40 833 020) - - - - 40 833 020

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CASIDRA SOC LIMITED


19. MANAGED PROJECTS (continued)

Project name and funder Balance Received Internal Other Projects completed Utilised Balance PDA 2012-03-31 from funders transfers income previous year 2013 2013-03-31 GASP West Coast- available 11 037 335 12 383 497 PDA -Western Cape and interest 12 479 021 15 078 000 (13 175 791) 450 908 - - - 14 832 138 Items expensed (1 441 686) - 1 441 686 - - - (2 448 641) (2 448 641) GASP West Coast- completed PDA- Western Cape and interest 34 098 534 - 12 479 021 - (34 098 534) - - 12 479 021 Items expensed 34 098 534) - (1 441 686) - - 34 098 534 (11 037 335) (12 479 021) GASP West Coast Metro - available 7 096 351 2 700 282 PDA- Western Cape and interest 7 183 687 2 032 650 (2 520 000) 293 202 - - - 6 989 539 Items expensed ( 87 336) - - - - - (4201 921) (4 289 257) Flood disaster West Coast - available PDA - Western Cape and interest 6 827 191 - - - (6 827 191) - ~I ~ I Items expensed (6 827 191) - - - - 6 827 191 Drought disaster Western Cape - available - -PDA- Western Cape and interest 27 409 470 - - - (27 409 470) - ~I ~ I Items expensed (27 409 470) - - - - 27 409 470 Flood disasters 2008 - available 15 500 699 11 918 952 PDA- Western Cape and interest 54 295 899 - - 641 792 - - - 54 937 691 Items expensed (38 795 200) - - - - - (4 223 539) (43 018 739) Drought relief 2011 allocation - available 22 989 758 2 313 845 PDA - Western Cape and interest 52 168 147 - - 679 123 - - - 52 847 270 Items expensed (29 178 389) - - - - - (21 355 036) (50 533 425) Amalienstein- available 612 101 1 252 714 PDA- Western Cape and interest 3 962 235 1 712 000 - 3 238 526 (3 962 235) - - 4 950 526 Items expensed (3 350 134) - - - - 3 962 235 (4 309 913) (3 697 812) Anhalt- available - 3 943 240 PDA - Western Cape and interest I ~ I 500 000 8 702 178 12 540 512 (8 702 178) - - 13 040 512 Items expensed - (5 750 140) - - 8 702 178 (12 049 310) (9 097 272) Waaikraa/ - available 28 914 36472 PDA - Western Cape and interest 2 472 562 1 528 000 - 1 304 965 (2 472 562) - - 2 832 965 Items expensed (2 443 648) - - - - 2 472 562 (2 825 407) (2 796 493)

Total PDA 117 995 626 85 021 635 2 952 038 23 726 325 (154 539 585) 154 539 585 (119031760) 110 663 864 Total project funding and interest received I 358 814 289l - 321 724 842 Total already expensed (21 1 060 978) (240 818 663)

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CASIDRA SOC LIMITED



Project name and funder Balance Received Internal Other Projects completed Utilised Balance DEDAT 2012-03-31 from funders transfers income previous year 2013 2013-03-31 Co-op Voucher programme - available 84 DEDAT and interest 81 929 - ( 22) - - - - 81 907 Items expensed ( 81 845) - - - - - ( 62) ( 81 907) Enterprise development fund - available 2172 330 DEDAT and interest 7 283 261 - 2 947 167 72 553 - - -~ 10 302 981 Items expensed (5110931) - - - - - (5 192 050) (10 302 981) Tourism Enterprise Development fund- availat DEDAT and interest 2 693 654 - - - (2 693 654) - ~ I ~I Items expensed (2 693 654) - - - - 2 693 654 M & E Study - available - -DEDAT and interest 575 370 - - - ( 575 370) - ~ I ~I Items expensed ( 575 370) - - - - 575 370 Red Door- available 4 406 964 1 500 000 DEDAT and interest 13 251 366 - - 300145 - - - 13551511 Municipalities 525 000 - - - - - - 525 000 Items expensed (9 369 402) - - - - - (3 207 109) (12576511) Red Door - completed DEDAT and interest 25 118 673 - - - (25118 673) - -o Municipalities 700 000 - - - ( 700 000) - - -Items expensed (25 818 673) - - - - 25 818 673 - -Red Finance/Siyabulela - available 79154 31 371 DEDA T and interest 8 403 989 - ( 106 343) 1 782 - - - 8 299 428 Items expensed (8 324 835) - - - - - 56 778 (8 268 057) Rural voucher- available 1 975 188 DEDAT and interest 4 385 873 - (1 915 748) 24665 - - - 2 494 790 Items expensed (2 410 685) - - - - - ( 84 105) (2 494 790) Skills and Work - available 1 667 087 1 073 DEDA T and interest 6 595 438 - (6 595 438) 41 578 - -

( 40 50;)1 41 578

Items expensed (4 928 351) - 4 928 351 - - - ( 40 505) Skills and Work - completed DEDA T and interest ~7625801 - 6 595 438 - (31 762 580) -

(1 667 08;)1 6 595 438

Items expensed 762 580) - (4 928 351) - - 31 762 580 (6 595 438)

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CASIDRA SOC LIMITED



Project name and funder Balance Received Internal Other Projects completed Utilised Balance DEDAT 2012-03-31 from funders transfers income previous year 2013 2013-03-31 Spatial fund - available 9 846 442 7 235 465 DEDAT and interest 11 056 611 4 054 215 - 304 717 - - - 15 415 543 Items expensed (1 210 169) - - - - - (6 969 9091 l8 180 078)

TotaiDEDAT 20 147 249 4054215 925 054 745 440 (60 850 277) 60 850 277 (17 104 049) 8 767 909 Total project funding and interest received 112 433 744 57 308 176 Total already expensed (92 286 495) (48 540 267)

Other Bitou Entrepreneur support- available 27277 55 213 DEDAT and interest 311 278 - - 31 896 - - - 343174 Items expensed ( 284 001) - - - - - ( 3 960) ( 287 961 ) City voucher- available 69 060 City of Cape Town funding and interest 1 793 906 - ( 69 209) 272 - - - 1 724 969

Items expensed (1 724 846) - - - - - ( 123) (1 724 969)

iKapa ABSA Fund - available as capital 1 288 702 752 180 ABSA funding and interest 22 396 769 - ( 656 389) 198 119 - - - 21 938 499

Items expensed (21 108 067) - - - - - ( 78 252) (21 186 319)

Merweville - available 48 902 122 Stichting Huis der Nederlanden and interest 271 818 - - 1 571 - - - 273 389

Items expensed ( 222 916) - - - - - (50 351) ( 273 267)

Oudtshoom support project- available 202 273 668 353

Interest and other 532 969 - - 9 792 ( 532 969) - - 9 792

Municipalities 420 000 - - 605 000 - - - 1 025 000

Items expensed ( 750 696) - - - - 532 969 ( 148 712) ( 366 439)

Social Entrepreneurial business support 199 901 DEDAT and interest 568 4661 - ( 199 456) 2 590

Items expensed ( 368 565) - - - - - ( 3 035)

Stony Point - available -

DEA T and interest 632 8591 2 342 000 - - ( 632 859)

Items expensed ( 632 859) - - - - 632 859 ( 784 078)

Stony Point Phase 2 - completed 6 305 DEAT and interest 347 6631 - - 54 215 - -

( 60 52~) 1 401 878

Items expensed ( 341 358) - - - - - ( 401 878)

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CASIDRA SOC LIMITED



Project name and funder Other Anhalt- available Own generations and interest Items expensed

Total Other Total project funding and interest received Total already expensed

Total project funds available Total project funding and interest received Total already expensed

Reconciliation of project funds applied Balance at the beginning of the year Less: Projects completed previous year Plus: Funds applied during the year

Balance at the end of the year

Reconciliation of project funds received Balance at the beginning of the year Projects completed previous year Funds received from PDA during the year Funds received from DAFF during the year Funds received from DEDAT during the year Funds received from DEAT during the year Funds received from DWA during the year Income and interest received during the year

Balance at the end of the year

Balance Received Internal Other Projects completed Utilised Balance 2012-03-31 from funders transfers income previous year 2013 2013-03-31 2 952 038

I 8 702 178l _ (8 702 178) _ _ _ _

1

_

1 (5 750 140) - 5 750 140 - - - - -

4 794 458 2 342 000 (3 877 092) 903 455 (1 165 828) 1 165 828 (1 129 031) 3 033 790 35 977 906

(31183448)

142 937 333 91 417 850 507 225 939

(364 288 606)

308 292 851 (117 768 763) 173 764 518

364 288 606

492 348 339 (1 17 768 763)

85 219 448 100 000

22 800 000 342 000

2 002 086 22 182 829

507 225 939

-34-

28 430 301 (25 396 511)

- 25 375 220 (216 555 690) 216 555 690 (137 264 840) 122 465 563 407 463 319

(284 997 756)

364 288 606 (216 555 690) 137 264 840

284 997 756

507 225 939 (216 555 690)

85 021 635

4 054 215 2 342 000 1 800 000

23 575 220

407 463 319

CASIDRA SOC LIMITED



CASP = Comprehensive Agricultural Support Programme DAFF = National Department of Agriculture, Forestry and Fisheries DEAT = National Department of Environmental Affairs and Tourism DEDAT =Department of Economic Development and Tourism DWA = National Department of Water Affairs PDA = Department of Agriculture Western Cape PGWC = Provincial Government Western Cape

20. POST REPORTING DATE EVENTS

No material facts or circumstances have arisen between the reporting date and the production of this report, which will affect the financial position of the company as is reflected in the financial statements.

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CASIDRA SOC LIMITED Annexure A


REMUNERATION PAID TO DIRECTORS AND PRESCRIBED OFFICERS

Company Salaries/ contri-

2012 fees Allowances Bonus butions Insurance Total Non-executive directors R R R R R R

Abrahams TE, Mr. 2 195 745 2 940 Calitz E, Prof 16 399 1 960 18 359 Ntuli, GM, Ms. 14 373 1 474 15 847 Smith JF, Prof 11 207 1 490 12 697 Oliver GA, Adv 21 376 3 724 25 100 van Deventer GMM, Adv 2 495 156 2 651

Subtotal 68 045 9 549 77 594

Prescribed officers CO du Preez- CEO (nine months) 675 000 1 123 676 123 TE Mlonyeni 591 315 224 063 68 699 28 938 913 015 FJ van Zyl 542 472 262 823 66 920 31 897 904 112

Subtotal 1 808 787 486 886 136 742 60 835 2 493 250

Total 1 876 832 496 435 136 742 60 835 2 570 844

2013 Non-executive directors Calitz E, Prof 16 713 1 655 18 368 Ntuli, GM, Ms. 10 784 1 786 12 570 Roos JH, Mr. 4 013 4 013 Smith JF, Prof 17 104 2 287 19 391 Oliver GA, Adv 24 562 5 298 29 860

Subtotal 69163 15 039 84 202

Prescribed officers SJ Conradie (five months) 315 818 85 000 32 562 15 876 449 256

TE Mlonyeni 570 732 275 628 35 726 71 570 30 819 984 475

FJ van Zyl 577 728 280 009 36 164 69 674 33 970 997 545

Subtotal 1 464 278 640 637 71 890 173 806 80 665 2 431 276

Total 1 533 441 655 676 71 890 173 806 80 665 2 515 478

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CASIDRA SOC LIMITED

DETAILED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 March 2013

(This detailed statement of comprehensive income is for the sole purpose of management and does not fonn part of the audited financial statements.)

LEGAL ECON OPERA· REGIONAL FINANCE TOTAL TOTAL HR IT SERVICES LIAISON DEV TIONS OFFICE &ADMIN 2013 2012 R R R R R R R R R R

Income Admin fee and other 11 867 35 187 295644 14 154 221 978 578 830 980 606 Transfer 71 573 ( 71 573) Project management fee 71 933 173 209 351 672 452 412 1 049 226 2 320 213

Total Tumover 11 867 107 120 468 853 437 399 602 817 1 628 056 3 300 819

Bad debt recovered 1 256 1 256 11 266 Commission received 531 531 2 231 Dividends received 77 043 77 043 57 468 Interest received 2 349 1 831 095 1 833 444 2 274 043 Profit on disposal of property, plant and 56 56 17 140 Rent received 374 620 374 620 486 015

Total other income 2 405 2 284 545 2 286 950 2 848163

Project income • expenses 137 264 840 137 264 840 173 764 518

Project income ·salaries 3 015 281 3 015 281 10 618 680

Total income 3 027148 107 120 468 853 439 804 140 152 202 144 195 127 190 532 180

Less: Expenses (13 630 096) ( 166 945) ( 18 125) ( 269 007) ( 33 487) (6 033 567) ( 439 804) (2 298 643) (22 889 674) (29 071 126 Accommodation & subsistence 23127 528 4459 25 930 41 034 25686 17 973 138 737 113 920 Advertising 59 838 14 400 74238 47 903 Aesthetical 38 323 38 323 9 91 4 Annual report 66 142 66142 81 262 Auditor's remuneration ·audit 280 000 280 000 255 150 Auditor's remuneration • other 70 500 70 500 26 000 Bad debt Bank charges 2267 73 419 75 686 85 413 Bursary • personnel 121 877 121 877 203 036 Bursary fund 351 579 351 579 482 180 Cleaning 1 431 129 145 130 576 129 587 Communication 54 056 312 829 366 885 388 007 Compensation commissioner 7 490 7 490 12 601

Consultancy fees 98 358 1 500 99 858 51 700

Consumables 3 718 Depreciation 25 241 309 646 334 887 431 824

Directors' remuneration 84 201 84 201 77 594

EEA 5250 5250 2 697

Electricity 8 772 247 853 256 625 195 072

Entertainment 3 685 2 396 111 959 118 040 110 767

nsurance 11 383 118 539 129 922 208 949

nterest paid 36 36

. egal fees 17 478 17 478 7 157

.evies

.icense 11 034 11 034 3 648

.eng service awards 23 385 23 385 8 564

.oss on property and ~quipment scrapped 7 315 72472 79 787 5

vlagazines 2 902 453 1 014 4890 21630 30 889 46 963

lllaintenance 28944 7 559 98 730 135 233 106 953

lllarketlng and news letters 148 665 148 665 125 649

vlembership (IT & other) 50 085 137 301 1 399 4 173 1 263 21 981 216 202 157 307

-37-

CASIDRA SOC LIMITED

DETAILED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 March 2013

(This detailed statement of comprehensive income is for the sole purpose of management and does not form part of the audited financial statements.)

LEGAL ECON OPERA- REGIONAL FINANCE TOTAL TOTAL HR IT SERVICES LIAISON DEV TIONS OFFICE &ADMIN 2013 2012 R R R R R R R R R R

Office expense 701 Performance bonus 312 620 312 620 Printing and stationery 6098 172 194 9 201 9 442 6 423 29 100 60 630 95 503 Rates and taxes 72 529 72 529 74357 Relocation 28167 28 167 4 825 Rent 95327 95 327 96928 Salaries 9 083 771 7 557 5 680 437 2 940 14 774 705 14 022 852 Salaries - Projects 3 015 281 3 015 281 10 618 680 Security 4 854 7 149 12 003 11 868 Skills levy 111 948 16 263 128 211 44 892 Social services 12.498 12 498 4 935 Training 307 793 6 761 16 310 10 590 341 454 185 224 Vehicle cost 13 279 11 781 277 281 166 628 153 755 622 724 536 821

Less: Direct project expenses . (137 282 340) Community development 17 500 I Project expenses 137 264 840 .

(Deficit)/profit (10 602 948) ( 166 945) ( 18 125) ( 269 007) 73 633 (5 564 714) 571 219 (15 976 887) (12 324 464)

Funding - Department of Agriculture Westem Cape 16 403 508 8 947 369 Funding- Department of Economic Development and Tourism 1 771 053 3 947 368

"refit - for the year 2 197 674 570 273 Jeficit - beginning of the year (1 695 639) (2 265 912)

"rofiV(deficit) -end of the year 502 035 p 695 639)

-38-

provincial government of south africa - together for rural ......in south africa, but also the...

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