Page 74 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15))
Annual Financial Statements for the year ended 31 March 2024
Board Members’ Report
The Board members submit their report for the year ended 31 March 2024.
1. Incorporation
The entity was incorporated on 09 September 2010. The KwaZulu-Natal Film Commission (KZNFilm) commenced its operations on 01 October 2013.
2. Review of activities
Main business and operations
The entity is engaged in promoting and marketing the KwaZulu-Natal province as a global destination for film productions. The entity operates principally in South Africa.
The operating results and state of affairs of the entity are fully set out in the attached annual financial statements and do not in our opinion, require any further comment.
Net deficit of the entity as at 31 March 2024 was R27 882 637 (2023: deficit R 28 490 486).
The objectives as defined by the KwaZulu-Natal Film Commission Act, No. 3 of 2010 are:
• to promote and market the Province as a global
destination for film production;
• to develop, promote and market, locally, nationally and
internationally the film industry in the Province;
• to facilitate investment in the film industry in the Province;
• to provide and encourage the provision of opportunities
for persons, especially from disadvantaged communities,
to enter and participate in the film industry in the Province;
• to address historical imbalances in the infrastructure and in the distribution of skills and resources in the film
industry in the Province; and
• to contribute to an enabling environment for job creation
in the film industry in the Province.
3. Going concern
We draw attention to the fact that as at 31 March 2024, the entity had an accumulated surplus of R14 794 497 and that the entity’s total assets exceed its liabilities by R14 794 497.
Notwithstanding the anticipated merger of KZNFilm and Tourism KwaZulu-Natal as communicated by the Shareholder, the annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.
4. Subsequent events
The KZN Tourism and Film Authority Act 2 of 2024 was gazetted on 24 May 2024, with the appointment of the Interim Board being done on 2 June 2024. The appointment of the Interim Board in effect dissolved the Board of KZN Film Commission and transferred all activities, budgets, systems, and employees to the new entity KZN Tourism and Film Authority.
5. Board members’ interest in contracts
Board Members are required to declare any conflict of interest during the meetings. As at 31 March 2024, there was no conflict of interest declared by board members.
6. Accounting policies
The annual financial statements are prepared in accordance with the South African Statements of Generally Recognised Accounting Practice (GRAP), including any interpretations of such Statements issued by the Accounting Standards Board, and in accordance with the prescribed Standards of (GRAP) issued by the Accounting Standards Board as the prescribed framework by National Treasury.
ANNUAL REPORT
2023/2024
72