Page 150 - Adopt-a-School Foundation 2016-2017 Annual Report
P. 150
ADOPT-A-SCHOOL FOUNDATION NPC
DIRECTORS REPORT
for the year ended 30 June 2017
diRectoRs RepoRt
The directors have pleasure in submitting his report on the annual financial statements of Adopt-a-School Foundation NPC for the year ended 30 June 2017.
1. nature of business
The Foundation is incorporated and domiciled in the Republic of South Africa. The Foundation’s main activity is to assist schools in need by mobilising resources
from individuals and companies willing to invest in the development of South Africa’s future human capital.
2. Review of financial results and activities
The annual financial statements have been prepared in accordance with International Financial Reporting Standards and the requirements of the Companies
Act 71 of 2008. The accounting policies have been applied consistently compared to the prior year.
The operating results and state of affairs of the Foundation are fully set out in the attached annual financial statements and do not in our opinion require any
further comment.
The Foundation recorded a total comprehensive loss for the year ended 30 June 2017 of R 1 224 387 (Profit of 2016: R 889 622).
financial Ratios
liquidity Ratio
The current ratio is a liquidity ratio that measures a foundation’s ability to pay short-term and long-term obligations. To gauge this ability, the current ratio
considers the current total assets of the foundation (both liquid and illiquid) relative to the Foundation’s current total liabilities.
2017 2016
Current Ratio - Total Current Assets = 31 557 782 39 472 145
Total Current Liabilities 24 079 674 29 903 520
= 1.31 1.32
The current ratio has remained stable from 2016 to 2017, therefore the organisations has the ability to pay its debt over the next 12 months.
solvency Ratio
A key metric used to measure the foundations ability to meet its debt and other obligations. The solvency ratio indicates whether the foundations cash flow is
sufficient to meet its short-term and long-term liabilities. Debt equity ratio as indicated in note 1.5 is 0% as the Foundation has no long term debt.
148
