Page 8 - CON Boardpack 20201027 November v00-03 (Final)

7.3 Resolution Johann Kotzé

The Board noted that the required virtual meetings took place with the
provincial representatives (members of the National Council) and that
the resolution was accepted and signed.

8. MANAGEMENT REPORT

8.1 Financial Reports

8.1.1 Draft Minutes of the Audit Committee
The Board members took note of the draft minutes of the Audit
Committee.

8.1.2 Audited Financial Statements
The Board noted that the decline in income was due to a decrease
in the number of pigs slaughtered.

The RMLA was handling all recoveries from abattoirs that fail to
declare their figures and do not pay the statutory levy over. A law
firm assisted with the collection of outstanding debts. SAPPO and
the RMLA held a monthly debtors meeting.

SAPPO’s business sustainability is reflected as R7,2 million and an
amount of R8,5 million was in the bank by the end of May. Working
capital of R9,5 million was available for a period of 3 months

Johann Kotzé referred the board members to the audit committee’s
minutes, noting the services Agri SA rendered to SAPPO and the
restructuring that was taking place at Agri SA. SAPPO then
considered outsourcing the financial and HR services to other
financial service companies. The decision was taken that after
identifying the relevant company Johann Kotzé must discuss it with
the Executive Committee before a recommendation is made to the
Audit Committee.

The decline in interest as indicated on P93 of the Audited Financial
Statements will be followed up and reported back by Johann Kotzé.

The meeting noted that Board members approved the financial
report as presented in the Board pack.

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