Umsobomvu Youth Fund Annual Report 2006 - Nyda
Umsobomvu Youth Fund Annual Report 2006 - Nyda Umsobomvu Youth Fund Annual Report 2006 - Nyda
notes to thefinancialstatementsfor the year ended31 March 2006GROUPCOMPANY2006 2005 2006 2005Rand Rand Rand Rand8 Loan debtorsGross advances 9 57 912 789 28 389 821 62 330 254 28 389 821At arm’s length 57 912 789 – 57 885 522 –Related party – subsidiary – – 4 444 732 –Add: Interest receivable 1 122 468 781 197 1 167 689 781 197Less: Capital repayments (10 773 778) (4 366 992) (10 987 902) (4 366 992)Less: Impairment (13 248 293) (5 326 336) (13 377 325) (5 326 336)Micro Finance (5 311 015) (1 497 160) (5 311 015) (1 497 160)General Fund (5 795 410) (3 600 882) (5 924 442) (3 600 882)Co-operatives (1 507 962) – (1 507 962) –Progress Fund (405 612) – (405 612) –Royalties (228 294) (228 294) (228 294) (228 294)Net loan debtors 35 013 186 19 477 690 39 132 716 19 477 690Current portion 13 994 469 10 478 743 14 944 521 10 478 743Long-term portion(due from 2007 to 2010) 21 018 717 8 998 947 24 188 195 8 998 947Total loan debtors 35 013 186 19 477 690 39 132 716 19 477 690Loans made to date are as follows:Range of Range of TermsDescription Total Rand loan amounts interest rates of loans Type of securities heldGeneral Fund 31 254 333 R80k to R4,8m Prime less 24 to 60 • General and special(2005: 19 160 704) (2005: R80k 1% up to a months notarial bondto R4,8m) maximum of• Cession of key man policy18% p.a. • Personal suretyshipcalculated daily,• Pledge of sharescompounded• Cession of receivablesmonthly• Mortgage bondMicro Finance 22 145 000 R2,7m to R5,4m Varying from 12 to 60 • Cession of receivablesintermediaries (2005: 7 756 764) (2005: R2,7m 0% to 6,5% monthsto R 5,4m)Co-operatives 1 507 964 R1,4m to R5m 0% 12 to 30 • Cession of receivables(2005: 1 472 353) (2005: R1,4m ) monthsUmsobomvu Youth Fund 2006 Financial StatementsProgress Fund 7 251 957 R100k to R3,2m Prime to 12 to 60 • General and specialprime +5% months notarial bond• Cession of key man policy• Personal suretyship• Pledge of shares• Cession of receivables• Mortgage bondMassmart 171 000 Loans up to Prime rate 12 to 36 The franchisor (third party)SME Fund R150k months guarantees 35% of thefund’s exposureTotal 62 330 2549 Included in loan debtors is the Fund’s share of loans from a joint venture between the Fund and First National Bank. The Fund hascontractually committed R80 million (equal to 33% of its share in the joint venture over a period of five years). This joint venture is in theform of a jointly controlled asset and the Fund recognises its interest in the jointly controlled asset in its financial statements.66
9 Investments in associates (Unlisted investments)COMPANY AND GROUPFair value Fair valueCountry % adjustment adjustmentNature of of incor- Share Investment Investment to to Carrying CarryingName enterprise poration holding at cost at cost associates associates value value2006 2005 2006 2005 2006 2005Rand Rand Rand Rand Rand RandFranchise 10 PrivateFund equity investmentsRSA – 60 000 000 40 000 000 842 629 1 562 086 64 828 334 43 985 705ChickenKwasa(Pty) Ltd Fast food RSA 26 300 000 – – – 300 000 –SerokoloHealth MedicalSolutions health(Pty) Ltd care RSA 26 26 – – – 26 –SoundriteSound Enter-(Pty) Ltd tainment RSA 10 10 – – – 10 –Paperrolls4 Africa Manu-(Pty) Ltd facturing RSA – – – – – – –Total 60 300 036 40 000 000 842 629 1 562 086 65 128 370 43 985 70510 The nature of the investment in Franchise Fund, an en-commandite partnership whereby the Fund has a contractual commitmentof R100 million (equal to 80% of the total contract of the associate) over a period of 5 years which commenced on 10 March 2003. As atyear-end the associate had drawn R60 million (2005: R40 million) from the total commitment. The investment is stated at fair value.10 Investments in subsidiary (Unlisted investments)COMPANY AND GROUPCountry % Provision ProvisionNature of of incor- Share Investment Investment for for Carrying CarryingName enterprise poration holding at cost at cost impairment impairment value value2006 2005 2006 2005 2006 2005Rand Rand Rand Rand Rand RandHi-Tech Specialises inTransformer maintenanceMaintenance and rigging(Pty) Ltd of powertransformers RSA 55 55 – 55 – – –Umsobomvu Youth Fund 2006 Financial Statements67
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- Page 42 and 43: eport ofthe auditcommitteeincomesta
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- Page 48 and 49: incomestatementfor the year ended31
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9 Investments in associates (Unlisted investments)COMPANY AND GROUPFair value Fair valueCountry % adjustment adjustmentNature of of incor- Share Investment Investment to to Carrying CarryingName enterprise poration holding at cost at cost associates associates value value<strong>2006</strong> 2005 <strong>2006</strong> 2005 <strong>2006</strong> 2005Rand Rand Rand Rand Rand RandFranchise 10 Private<strong>Fund</strong> equity investmentsRSA – 60 000 000 40 000 000 842 629 1 562 086 64 828 334 43 985 705ChickenKwasa(Pty) Ltd Fast food RSA 26 300 000 – – – 300 000 –SerokoloHealth MedicalSolutions health(Pty) Ltd care RSA 26 26 – – – 26 –SoundriteSound Enter-(Pty) Ltd tainment RSA 10 10 – – – 10 –Paperrolls4 Africa Manu-(Pty) Ltd facturing RSA – – – – – – –Total 60 300 036 40 000 000 842 629 1 562 086 65 128 370 43 985 70510 The nature of the investment in Franchise <strong>Fund</strong>, an en-commandite partnership whereby the <strong>Fund</strong> has a contractual commitmentof R100 million (equal to 80% of the total contract of the associate) over a period of 5 years which commenced on 10 March 2003. As atyear-end the associate had drawn R60 million (2005: R40 million) from the total commitment. The investment is stated at fair value.10 Investments in subsidiary (Unlisted investments)COMPANY AND GROUPCountry % Provision ProvisionNature of of incor- Share Investment Investment for for Carrying CarryingName enterprise poration holding at cost at cost impairment impairment value value<strong>2006</strong> 2005 <strong>2006</strong> 2005 <strong>2006</strong> 2005Rand Rand Rand Rand Rand RandHi-Tech Specialises inTransformer maintenanceMaintenance and rigging(Pty) Ltd of powertransformers RSA 55 55 – 55 – – –<strong>Umsobomvu</strong> <strong>Youth</strong> <strong>Fund</strong> <strong>2006</strong> Financial Statements67
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