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provides automated drafting and working paper financial software
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0861 51 52 53 or info@draftworx.com
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 FINANCIALS
Time spent drafting or correcting financial statements could be better spent adding value to your clients.

Quickly and easily import a working trial balance or general ledger from most accounting software packages. Link a trial balance in seconds
with our automatic linking technology, fine tune the linking process with easy searchable links, and watch your financials update in realtime.
It’s never been easier to customise statements according to your practice’s requirements. And its intuitive, spreadsheet-like design means
very little training or cost is required to use it. From Sole Prop to JSE Compliant IFRS financials. Our annotation & built in IFRS/IFRS SME
checklists ensure accurate, compliant financials every time.
Financial templates included: IFRS for SME, IFRS + IFRS Consolidation, Body Corporate, Close Corp, Partnership, Sole Proprietor, Trust, Non-Profit
Organization, Management Pack (12 Month Balance Sheet, Income Statement, Actual vs Budget etc.)
Working Trial Balance import from several sources, including auto-linking and account allocation
Drop in, and automation, of current methodology working papers
Display all trial balance accounts linked to a queried cell with drill down functionality
Reclassify linked accounts for current year without affecting comparatives
Historical tracking, issue/review notes and disclosures, a full annotation system, cell protection and sign-offs
Up-to-date support for major software packages: Sage, QuickBooks, Xero, Caseware, Excel, etc.

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Provides template working papers for every scenario, as well as helpful examples
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Visual Management Reports
Flexible engagement approach

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 WEBSYNC *
Eliminate geographical boundaries and empower your team to work from anywhere, at any time and on any device.

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* Add On Module or Service

Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Annual Financial Statements
for the year ended 28 February 2017

Audited Financial Statements

in compliance with Companies Act 71 of 2008
Prepared by: John Smith
Professional designation: Director
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Annual Financial Statements for the year ended 28 February 2017

Index

Index 1

Director's Responsibilities and Approval 2

Director's Report 3

Independent Auditor's Report 4-5

Statement of Financial Position 6

Statement of Comprehensive Income 7

Statement of Changes in Equity 8

Statement of Cash Flows 9

Accounting Policies 10 - 13

Notes to the Annual Financial Statements 14 - 20

The supplementary information presented does not form part of the annual financial statements and is unaudited:
Detailed Income Statement 21

1
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Annual Financial Statements for the year ended 28 February 2017

Director's Responsibilities and Approval

The director is required by the Companies Act of South Africa to maintain adequate accoun ng records and is responsible for the
content and integrity of the annual financial statements and related financial informa on included in this report. It is his
responsibility to ensure that the annual financial statements sa sfy the financial repor ng standards as to form and content and
present fairly the statement of financial posi on, results of opera ons and business of the company, and explain the transac ons
and financial posi on of the business of the company at the end of the financial year. The annual financial statements are based
upon appropriate accoun ng policies consistently applied throughout the company and supported by reasonable and prudent
judgements and es mates.

The director acknowledges that he is ul mately responsible for the system of internal financial control established by the company
and place considerable importance on maintaining a strong control environment. To enable the director to meet these
responsibili es, the director sets standards for internal control aimed at reducing the risk of error or loss in a cost effec ve
manner. The standards include the proper delega on of responsibili es within a clearly defined framework, effec ve accoun ng
procedures and adequate segrega on of du es to ensure an acceptable level of risk. These controls are monitored throughout the
company and all employees are required to maintain the highest ethical standards in ensuring the company's business is
conducted in a manner that in all reasonable circumstances is above reproach.

The focus of risk management in the company is on iden fying, assessing, managing and monitoring all known forms of risk across
the company. While opera ng risk cannot be fully eliminated, the company endeavours to minimise it by ensuring that
appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures
and constraints.

The director is of the opinion, based on the informa on and explana ons given by management and the external auditors, that
the system of internal control provides reasonable assurance that the financial records may be relied on for the prepara on of the
annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute,
assurance against material misstatement or loss. The going-concern basis has been adopted in preparing the financial statements.
Based on forecasts and available cash resources the director has no reason to believe that the company will not be a going
concern in the foreseeable future. The financial statements support the viability of the company.

The annual financial statements have been audited by the independent audi ng firm, Dra worx Auditors, who have been given
unrestricted access to all financial records and related data, including minutes of all mee ngs of shareholder, the director and
commi ees of the director. The director believes that all representa ons made to the independent auditor during the audit were
valid and appropriate. The external auditors' unqualified audit report is presented on pages 4 to 5.

The annual financial statements as set out on pages 6 to 20 were approved by the board on 31 May 2017 and were signed by him.

John Smith

Dra worx DigiSign solu on powered by SignFlow, is a secure, digital signature workflow solu on that enables you to send your
financial statements to clients for approval without ever leaving your office. * Add On Module

2
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Annual Financial Statements for the year ended 28 February 2017

Director's Report

The director presents his report for the year ended 28 February 2017.

1. Review of activities

Main business and operations

The principal activity of the company is retail outlet in central pretoria and there were no major changes herein during the year.

The opera ng results and statement of financial posi on of the company are fully set out in the a ached financial statements and
do not in my opinion require any further comment.

2. Events after reporting date

All events subsequent to the date of the annual financial statements and for which the applicable financial repor ng framework
require adjustment or disclosure have been adjusted or disclosed.

The Director is not aware of any ma er or circumstance arising since the end of the financial year to the date of this report that
could have a material effect of the financial position of the company.

3. Authorised and issued share capital

No changes were approved or made to the authorised or issued share capital of the company during the year under review.

4. Dividend

No dividend was declared nor paid to the shareholder during the year.

5. Director

The director of the company during the year and to the date of this report is as follows:
John Smith

6. Secretary

No secretary has been formally appointed during the current financial year.

7. Shareholder

There have been no changes in ownership and the shareholder remains:

%
John Smith 100

8. Independent Auditors

Draftworx Auditors were the independent auditors for the year under review.

3
 Independent Auditor's Report
1. Expand for Independent Auditor's Report for year ends on or after 15 December 2016
To the Shareholder of Financials+ IFRS SME Proprietary Limited

Opinion
We have audited the financial statements of Financials+ IFRS SME Proprietary Limited set out on pages 6 to 20, which comprise
the statement of financial posi on as at 28 February 2017, and the statement of comprehensive income, the statement of changes
in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies.

In our opinion, the financial statements present fairly, in all material respects, the financial posi on of the company as at 28
February 2017, and its financial performance and cash flows for the year then ended in accordance with the Interna onal
Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Companies Act of South Africa.

1.1 Basis for Opinion

We conducted our audit in accordance with Interna onal Standards on Audi ng (ISAs). Our responsibili es under those standards
are further described in the Auditor's Responsibili es for the Audit of the financial statements sec on of our report. We are
independent of the company in accordance with the Independent Regulatory Board for Auditors Code of Professional Conduct for
Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of financial statements in
South Africa. We have fulfilled our other ethical responsibili es in accordance with the IRBA Code and in accordance with other
ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the Interna onal Ethics
Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B). We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.

1.2 Responsibilities of the Director for the Financial Statements

The director is responsible for the prepara on and fair presenta on of the financial statements in accordance with the
Interna onal Financial Repor ng Standard for Small and Medium-sized En es and the requirements of the Companies Act of
South Africa, and for such internal control as the director determines is necessary to enable the prepara on of financial
statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to con nue as a going
concern, disclosing, as applicable, ma ers related to going concern and using the going concern basis of accoun ng unless the
director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

1.3 Auditor's Responsibilities for the Audit of the Financial Statements

Our objec ves are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.

4
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scep cism throughout
the audit. We also:
• Iden fy and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detec ng a material misstatement resul ng from fraud is higher than for
one resul ng from error, as fraud may involve collusion, forgery, inten onal omissions, misrepresenta ons or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effec veness of the company's internal
control.
• Evaluate the appropriateness of accoun ng policies used and the reasonableness of accoun ng es mates and related
disclosures made by the director.
• Conclude on the appropriateness of the director's use of the going concern basis of accoun ng and based on the audit
evidence obtained, whether a material uncertainty exists related to events or condi ons that may cast significant doubt on
the company's ability to con nue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw a en on in our auditor's report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
• Evaluate the overall presenta on, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• We communicate with the director regarding, among other ma ers, the planned scope and ming of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Draftworx Auditors 31 May 2017

Per: Jack Smith 123 Murray Street

Director Pretoria
Chartered Accountant (SA) 0001

5
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Statement of Financial Position

Figures in R Notes 2017 2016

Non-current assets
Property, plant and equipment 4 30,847,176 21,889,404

Current assets
Inventories 5 25,158,794 24,154,465
Trade and other receivables 7 64,504,663 20,012,456
Total current assets 89,663,457 44,166,921

Total assets 120,510,633 66,056,325

Equity and liabilities

Equity
Issued capital 8 100 100
Retained income 64,128,731 17,754,535
Total equity 64,128,831 17,754,635

Liabilities
Current liabilities
Trade and other payables 9 21,841,996 27,587,172
Other financial liabilities 10 31,393,753 19,005,133
Bank overdraft 11 3,146,053 1,709,385
Total current liabilities 56,381,802 48,301,690

Total liabilities 56,381,802 48,301,690

Total equity and liabilities 120,510,633 66,056,325

6
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Statement of Comprehensive Income

Figures in R Notes 2017 2016

Revenue 12 215,015,543 200,124,564

Cost of sales 13 (139,760,103) (134,083,458)
Gross profit 75,255,440 66,041,106

Administrative expenses 14 (602,570) (596,365)

Other expenses 15 (28,278,674) (25,014,105)
Profit from operating activities 16 46,374,196 40,430,636

Profit for the year 46,374,196 40,430,636

7
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Statement of Changes in Equity

Retained
Figures in R Issued capital income Total

Balance at 1 March 2015 100 (2,676,101) (2,676,001)

Changes in equity
Profit for the period - 40,430,636 40,430,636
Total comprehensive income - 40,430,636 40,430,636
Dividend recognised as distributions to owners - (20,000,000) (20,000,000)
Balance at 29 February 2016 100 17,754,535 17,754,635

Balance at 1 March 2016 100 17,754,535 17,754,635

Changes in equity
Profit for the period - 46,374,196 46,374,196
Total comprehensive income - 46,374,196 46,374,196
Balance at 28 February 2017 100 64,128,731 64,128,831
Note 8

8
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Statement of Cash Flows

Figures in R Note 2017 2016

Cash flows used in operating activities

Profit for the year 46,374,196 40,430,636
Adjustments to reconcile profit
Adjustments for increase in inventories (1,004,329) (11,139,181)
Adjustments for increase in trade accounts receivable (44,492,207) (12,504,888)
Adjustments for decrease in trade accounts payable (5,852,677) (5,070,548)
Adjustments for increase in other operating payables 107,501 506,784
Adjustments for depreciation and amortisation expense 581,895 248,985
Total adjustments to reconcile profit (50,659,817) (27,958,848)
Net cash flows (used in) / from operations (4,285,621) 12,471,788

Dividend paid - (20,000,000)

Net cash flows used in operating activities (4,285,621) (7,528,212)

Cash flows used in investing activities

Purchase of property, plant and equipment (9,539,667) (1,253,423)
Cash flows used in investing activities (9,539,667) (1,253,423)

Cash flows from financing activities

Proceeds from other financial liabilities 12,388,620 6,601,846
Cash flows from financing activities 12,388,620 6,601,846

Net decrease in cash and cash equivalents (1,436,668) (2,179,789)

Cash and cash equivalents at beginning of period (1,709,385) 470,404

Cash and cash equivalents at end of period 11 (3,146,053) (1,709,385)

9
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Accounting Policies
Figures in R

1. General information

Financials+ IFRS SME Proprietary Limited ('the company') retail outlet in central Pretoria.

The company is incorporated and domiciled in South Africa. The address of its registered office is 123 Murray Street, Pretoria,
0001.

2. Basis of preparation

The financial statements of Financials+ IFRS SME Proprietary Limited have been prepared in accordance with the Interna onal
Financial Repor ng Standard for Small and Medium-sized En es and the Companies Act of South Africa. The financial statements
have been prepared under the historical cost conven on, as modified by the revalua on of investment property, certain property,
plant and equipment, biological assets and derivative financial instruments at fair value.

The prepara on of financial statements in conformity with the Interna onal Financial Repor ng Standard for Small and Medium-
sized En es requires the use of certain cri cal accoun ng es mates. It also requires management to exercise its judgement in the
process of applying the company's accounting policies.

3. Summary of significant accounting policies

The principal accoun ng policies applied in the prepara on of these annual financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.

3.1 Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated deprecia on and any accumulated impairment losses.
Historical cost includes expenditure that is directly a ributable to bringing the asset to the loca on and condi on necessary for it
to be capable of operating in the manner intended by management.

The company adds to the carrying amount of an item of property, plant and equipment the cost of replacing parts of such an item
when that cost is incurred if the replacement part is expected to provide incremental future benefits to the company. The carrying
amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the period in
which they are incurred.

Land is not depreciated. Deprecia on on other assets is charged so as to allocate the cost of assets less their residual value over
their estimated useful lives, using the straight-line method. The estimated useful lives range as follows:
Asset class Depreciation rate
Land Not depreciated
Machinery 20.00%
Motor vehicles 20.00%
Office equipment 16.67%
Computer equipment 33.33%

The assets' residual values, useful lives and deprecia on methods are reviewed, and adjusted prospec vely if appropriate, if there
is an indication of a significant change since the last reporting date.

An asset's carrying amount is wri en down immediately to its recoverable amount if the asset's carrying amount is greater than its
estimated recoverable amount.

10
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Accounting Policies
Figures in R

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within
'other gains/(losses)' in the statement of comprehensive income.

3.2 Financial instruments

Trade and other receivables

Trade receivables are recognised ini ally at the transac on price. They are subsequently measured at amor sed cost using the
effec ve interest method, less provision for impairment. A provision for impairment of trade receivables is established when there
is objec ve evidence that the company will not be able to collect all amounts due according to the original terms of the
receivables.

Trade and other receivables are classified as debt instruments and loan commitments at amortised cost.

Other financial assets

Other financial assets are recognised ini ally at the transac on price, including transac on costs except where the asset will
subsequently be measured at fair value.

Where other financial assets relate to shares that are publically traded, or where fair values can be measured reliably without
undue cost or effort, these assets are subsequently measured at fair value with the changes in fair value being recognised in profit
or loss. Other investments are subsequently measured at cost less impairment.

Debt instruments are subsequently stated at amor sed cost. Interest income is recognised on the basis of the effec ve interest
method and is included in finance income.

Commitments to receive a loan that meet the conditions in paragraph 11.8(c) are be measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, demand deposits and other short-term highly liquid investments with original
maturities of three months or less. Bank overdrafts are shown in current liabilities on the statement of financial position.

Trade and other payables

Trade payables are recognised ini ally at the transac on price and subsequently measured at amor sed cost using the effec ve
interest method.

Other financial liabilities

Other financial liabili es are recognised ini ally at the transac on price, including transac on costs except where the liability will
subsequently be measured at fair value.

Where the fair value of other financial liabili es can be measured reliably without undue cost or effort, these liabili es are
subsequently measured at fair value with the changes in fair value being recognised in profit or loss.

Debt instruments are subsequently stated at amor sed cost. Interest expense is recognised on the basis of the effec ve interest
method and is included in finance costs.

Other financial liabili es are classified as current liabili es unless the company has an uncondi onal right to defer se lement of
the liability for at least 12 months after the reporting date.

Issued capital
Ordinary shares are classified as equity.

11
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Accounting Policies
Figures in R

Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of
issuing the equity instruments. If payment is deferred and the me value of money is material, the ini al measurement is on a
present value basis.

3.3 Inventories

Inventories are stated at the lower of cost and es mated selling price less costs to complete and sell. Cost is determined using the
first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises packaging costs, raw materials, direct
labour, other direct costs and related produc on overheads (based on normal opera ng capacity). At each repor ng date,
inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to
complete and sell; the impairment loss is recognised immediately in profit or loss.

3.4 Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change
a ributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other
comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substan vely enacted by
the reporting date in the countries where the company's subsidiaries operate and generate taxable income.

Deferred income tax is recognised on temporary differences (other than temporary differences associated with unremi ed
earnings from foreign subsidiaries and associates to the extent that the investment is essen ally permanent in dura on, or
temporary differences associated with the ini al recogni on of goodwill) arising between the tax bases of assets and liabili es and
their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred
income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each repor ng date and a valua on allowance is set up against
deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based
on current or future taxable profit.

3.5 Revenue

Revenue is measured at the fair value of the considera on received or receivable. Revenue is shown net of value-added tax,
returns, rebates and discounts.

Revenue from the sale of goods is recognised when:

a) significant risks and rewards of ownership of the goods have been transferred to the buyer;
b) there neither con nuing managerial involvement to the degree usually associated with ownership nor effec ve control
over the goods sold;
c) the amount of revenue can be measured reliably;
d) it is probable that the economic benefits associated with the transaction will flow to the entity; and
e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest income is recognised using the effective interest method.

3.6 Employee benefits

Employee benefits are all forms of considera on given by an en ty in exchange for service rendered by employees or for the
termination of employment.

12
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Accounting Policies
Figures in R

Short-term employee benefits are employee benefits (other than termina on benefits) that are expected to be se led wholly
before twelve months after the end of the annual reporting period in which the employees render the related service.

Short-term employee benefits

Compensa on paid to employees for the rendering of services are recognised at the undiscounted amount paid or expected to be
paid in the accounting period in which the services were rendered.

Where employees accumulate en tlement for paid absences, an expense is recognised as the addi onal amount that the en ty
expects to pay as a result of the unused en tlement that has accumulated at the end of the repor ng period. In the case of non-
accumulating paid absences, the expense is recognised only when the absences occur.

The expected cost of profit-sharing and bonus payments are recognised when there is a present legal or construc ve obliga on to
make such payments as a result of past events, and a reliable es mate of the obliga on can be made. A present obliga on exists
when there is no realistic alternative but to make the payments.

Defined contribution plans

Defined contribu on plans are post-employment benefit plans under which an en ty pays fixed contribu ons into a separate
en ty (a fund) and will have no legal or construc ve obliga on to pay further contribu ons if the fund does not hold sufficient
assets to pay all employee benefits relating to employee service in the current and prior periods.

When an employee has rendered service to an en ty during a period, the contribu on payable to a defined contribu on plan in
exchange for that service is recognised:
a) as a liability, a er deduc ng any contribu on already paid. Where the contribu on already paid exceeds the contribu on
due for service before the end of the repor ng period, the excess is recognised as an asset to the extent that the
prepayment will lead to a reduction in future payments or a cash refund.
b) as an expense, except where the amount is allowed as an inclusion in the cost of an asset.

13
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Notes to the Annual Financial Statements

Figures in R

4. Property, plant and equipment .

4.1 Balances at year end and movements for the year

Computer
Land Machinery Motor vehicles Office equipment equipment Total
Reconciliation for the year ended 28 February 2017
Balance at 1 March 2016
At cost 20,000,000 10,541,995 5,270,997 3,953,248 6,588,747 46,354,987
Accumulated depreciation - (9,786,233) (4,893,117) (3,669,837) (6,116,396) (24,465,583)
Net book value 20,000,000 755,762 377,880 283,411 472,351 21,889,404

Movements for the year ended 28 February 2017

Additions other than through business combinations - 3,815,867 1,907,934 1,430,949 2,384,917 9,539,667
Depreciation - (232,758) (116,379) (87,284) (145,474) (581,895)
Property, plant and equipment at end of period 20,000,000 4,338,871 2,169,435 1,627,076 2,711,794 30,847,176

Closing balance at 28 February 2017

At cost 20,000,000 14,357,862 7,178,931 5,384,198 8,973,664 55,894,655
Accumulated depreciation - (10,018,991) (5,009,496) (3,757,122) (6,261,870) (25,047,479)
Net book value 20,000,000 4,338,871 2,169,435 1,627,076 2,711,794 30,847,176

14
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Notes to the Annual Financial Statements

Figures in R

Reconciliation for the year ended 29 February 2016

Balance at 1 March 2015
At cost 20,000,000 10,040,626 5,020,313 3,765,235 6,275,391 45,101,565
Accumulated depreciation - (9,686,639) (4,843,320) (3,632,490) (6,054,150) (24,216,599)
Net book value 20,000,000 353,987 176,993 132,745 221,241 20,884,966

Movements for the year ended 29 February 2016

Additions other than through business combinations - 501,369 250,684 188,014 313,356 1,253,423
Depreciation - (99,594) (49,797) (37,348) (62,246) (248,985)
Property, plant and equipment at end of period 20,000,000 755,762 377,880 283,411 472,351 21,889,404

Closing balance at 29 February 2016

At cost 20,000,000 10,541,995 5,270,997 3,953,248 6,588,747 46,354,987
Accumulated depreciation - (9,786,233) (4,893,117) (3,669,837) (6,116,396) (24,465,583)
Net book value 20,000,000 755,762 377,880 283,411 472,351 21,889,404

15
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Notes to the Annual Financial Statements

Figures in R 2017 2016

4.2 Additional disclosures

Assets whose title is restricted and pledged as security

The carrying values of assets pledged as security is as

follows:
Land 20,000,000 20,000,000

4.3 Detail of properties

4.3.1 17 Church Street, Pretoria

Warehouse facility
Purchase price 10,000,000 10,000,000
Improvements 2015 10,000,000 10,000,000
20,000,000 20,000,000

5. Inventories . . . .

5.1 The balances of inventories are as follows:

Merchandise 25,158,794 24,154,465

6. Other financial assets

6.1 Carrying amount of financial assets by category

Debt instruments
at amortised cost Total
Year ended 28 February 2017
Trade and other receivables excluding non-financial assets
(Note 7) 64,504,663 64,504,663

Year ended 29 February 2016

Trade and other receivables excluding non-financial assets
(Note 7) 20,012,456 20,012,456

6.2 Financial assets pledged as collateral

Carrying amount of financial assets pledged as collateral

for financial or contingent liabilities: 2017 2016
Trade and other receivables 64,504,663 20,012,456

16
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Notes to the Annual Financial Statements

Figures in R 2017 2016

7. Trade and other receivables . . . .

7.1 Trade and other receivables comprise:

Trade receivables 64,504,663 20,012,456

8. Issued capital . . . .

8.1 Authorised and issued share capital

Authorised
1,000 Ordinary shares of R1 each 1,000 1,000

Issued
100 Ordinary shares of R1 each 100 100

9. Trade and other payables . . . .

9.1 Trade and other payables are made up as follows:

Trade creditors 20,964,016 26,816,693

Value added tax 877,980 770,479
Total trade and other payables 21,841,996 27,587,172

9.2 Items included in trade and other payables not classified as

financial liabilities

Value added tax 877,980 770,479

Total non-financial liabili es included in trade and other
payables 877,980 770,479
Total trade and other payables excluding non-financial
liabilities included in trade and other payables 20,964,016 26,816,693
Total trade and other payables 21,841,996 27,587,172

17
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Notes to the Annual Financial Statements

Figures in R 2017 2016

10. Other financial liabilities . .

10.1 Carrying amount of other financial liabilities by category

Debt instruments
at amortised cost Total
Year ended 28 February 2017
Mortgage bonds 15,000,000 15,000,000
Instalment sale agreements 10,897,564 10,897,564
Loans from shareholders 5,496,189 5,496,189
Components listed under other financial assets on the
statement of financial position 31,393,753 31,393,753

Trade and other payables excluding non-financial liabili es

(Note 9) 20,964,015 20,964,015
Bank overdraft (Note 11) 3,146,053 3,146,053
Components listed separately on the statement of financial
position 24,110,068 24,110,068

55,503,821 55,503,821

Other financial assets comprise the following on the

statement of financial position:
Current portion 31,393,753 31,393,753
Non-current portion - -
31,393,753 31,393,753

Year ended 29 February 2016

Mortgage bonds 10,000,000 10,000,000
Instalment sale agreements 1,750,165 1,750,165
Loans from shareholders 7,254,968 7,254,968
Components listed under other financial assets on the
statement of financial position 19,005,133 19,005,133

Trade and other payables excluding non-financial liabili es

(Note 9) 26,816,692 26,816,692
Bank overdraft (Note 11) 1,709,385 1,709,385
Components listed separately on the statement of financial
position 28,526,077 28,526,077

47,531,210 47,531,210

18
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Notes to the Annual Financial Statements

Figures in R 2017 2016

Other financial assets comprise the following on the

statement of financial position:
Current portion 19,005,133 19,005,133
Non-current portion - -
19,005,133 19,005,133

11. Cash and cash equivalents . . . .

11.1 Cash and cash equivalents comprise:

Bank overdrafts (3,146,053) (1,709,385)

Total overdrawn cash and cash equivalents included in
current liabilities (3,146,053) (1,709,385)

11.2 Undrawn overdraft facilities

Limit of overdraft facilities available to the Company 10,000,000 5,000,000

Total undrawn facilities at year end 6,853,947 3,290,615

11.3 Securities provided

Description Details
Trade receivables Trade receivables are ceded to the bank in case of any recall of
facilities

12. Revenue . . . .

12.1 Revenue comprises

Sale of goods 215,015,543 200,124,564

13. Cost of sales . . . .

13.1 Cost of sales is analysed as follows:

Sale of goods 139,760,103 134,083,458

14. Administrative expenses . . . .

14.1 Administrative expenses consist:

Accounting fees 150,546 180,685

Bank charges 452,024 415,680
602,570 596,365

19
 Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Financial Statements for the year ended 28 February 2017

Notes to the Annual Financial Statements

Figures in R 2017 2016

15. Other expenses . . . .

15.1 Other expenses consist:

Advertising 385,546 354,848

Cleaning 2,045,468 1,864,796
Hire - equipment 3,059,496 2,781,360
Software expense - Draftworx 150,324 364,865
Petrol and oil 546,810 458,602
Training 1,568,496 1,248,560
Travel - local 254,879 250,489
Employee benefit expenses 19,685,760 17,441,600
Depreciation 581,895 248,985
Total other expenses 28,278,674 25,014,105

16. Profit from operating activities . . . .

16.1 Profit from opera ng ac vi es includes the following

separetely disclosable items

Other operating expenses

Property plant and equipment
- depreciation 581,895 248,985

Other employee benefits 19,685,760 17,441,600

20
Financials+ IFRS SME Proprietary Limited
(Registration Number 2017/012345/07)
Annual Financial Statements for the year ended 28 February 2017

Detailed Income Statement

Figures in R 2017 2016

Revenue
Sale of goods 215,015,543 200,124,564
Total revenue 215,015,543 200,124,564

Cost of sales
Sale of goods (139,760,103) (134,083,458)
Total cost of sales (139,760,103) (134,083,458)

Gross profit 75,255,440 66,041,106

Other operating expenses

Accounting fees (150,546) (180,685)
Advertising (385,546) (354,848)
Bank charges (452,024) (415,680)
Cleaning (2,045,468) (1,864,796)
Depreciation - property, plant and equipment (581,895) (248,985)
Employee expense - salaries (19,685,760) (17,441,600)
Hire (3,059,496) (2,781,360)
Petrol and oil (546,810) (458,602)
Software expense - Draftworx (150,324) (364,865)
Training (1,568,496) (1,248,560)
Travel - local (254,879) (250,489)
Total other expenses (28,881,244) (25,610,470)

Profit before tax 46,374,196 40,430,636

Profit for the year 46,374,196 40,430,636

21