Page 58 - KZN Film A Report

KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15))
Annual Financial Statements for the year ended 31 March 2021
Board Members’ Report
The Board members submit their report for the year ended March 31, 2021.
1. Incorporation
The entity was incorporated on September 9, 2010. The KwaZulu-Natal Film Commission (KZNFC) 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 production. 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 surplus of the entity as at 31 March 2021 was R13,938,762 (2020: surplus R17,958,988), 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 2021, the entity had an accumulated surplus of R79,676,570 and that the entity’s total assets exceed its liabilities by R79,676,570.
Not withstanding the anticipated merger of KZNFC 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
KZNFC has entered into an extended lease agreement on the 30th of April 2021 with Broll (Pty) Ltd after the reporting date 31 March 2021.
The total cost of lease rentals are R5,782,141 over the lease term.
5. Board members’ interest in contracts
Board Members are required to declare any conflict of interest during the meetings. As at 31 March 2021, there was no conflict of interest recorded for the period under review.
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 Practices Board, and in accordance with the prescribed Standards of (GRAP) issued by the Accounting Standards Board as the prescribed framework by National Treasury.
7. Board members
The Board members of the entity during the year and to the date of this report are as follows:
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KZN FILM COMMISSION ANNUAL REPORT 2020/2021