Page 94 - CON Boardpack July 20200708 Final_Neat

SA Pork Producers Organisation
Financial Statements for the year ended 31 December 2019

Notes to the Financial Statements
2019 2018
R R

15. Related parties
`
Relationships

Members of Executive Board JF Kotze (CEO)
JP van der Walt (Chairman)
S Butt (Vice Chairman)
C Braak
D Osborne
J Jenkinson
L Bhengu
M van Deventer
P Mockford
S Guizot
W Miller

Related party balances and transactions with entities with control, joint control or significant influence over the
company

Related party transactions

New entrant development

Baynesfield - Business development: Skills development 109 739 181 680

KP Piggery - Business development: Management 3 820 3 779
KP Piggery - Business development: Skills development 1 935 5 228

KP Piggery - Corporate service - 5 625

16. Change in estimate

Property, plant and equipment

The useful life of motor vehicles was estimated in 2018 to be 5 years. In the current period management have revised their

estimate to 3 years. The effect of this revision has increased the depreciation charges for the current and future periods by
R 24 104.

17. Going concern

The executive board believe that the organisation has adequate financial resources to continue in operation for the foreseeable

future and accordingly the annual financial statements have been prepared on a going concern basis. The executive board
have satisfied themselves that the organisation is in a sound financial position and that it has access to sufficient borrowing
fac ilities to meet its foreseeable cash requirements. The executive board are not aware of any new material changes that may

adversely impact the organisation. The executive board are also not aware of any material non-compliance with statutory or
regulatory requirements or of any pending changes to legislation which may affect the organisation.

18. Events after the reporting period

The Covid-19 pandemic which has engulfed the world during March and April 2020 has had a negative impact on the global

business environment. The executive board have in response to the national lockdown imposed by the government
implemented an extensive contingency plan whereby the majority of staff members could continue to perform their duties from

home thereby ensuring the organisations' ability to generate revenue remains intact. The organisation has no long term debt

and has adequate working capital to sustain its operations for atleast four months on the assumption that the accounts
receivable billed to date will be honoured by customers. The executive board are of the opinion that the majority of the

organisations' customer base will have the ability to honour their commitments.

Consequently, the executive board is confident that the Covid-19 pandemic will not have an adverse effect on the financial

results as reflected in these financial statements.

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