NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION NOTES TO THE ECONOMIC INTEREST ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 Leasehold Office Equipment Motor Vehicles Sports Equipment Total improvements R R 6. PROPERTY AND EQUIPMENT Year ended 30 April 2018 Opening net book value - 470 966 4 266 - 475 232 Addi ons - 131 514 - - 131 514 Deprecia on - (167 545) - - (167 545) Closing net book value - 434 935 4 266 - 439 201 At 30 April 2018 Cost 226 903 1 247 228 183 513 7 000 1 664 644 Accumulated deprecia on (226 903) (812 293) (179 247) (7 000) (1 225 443) Net book value - 434 935 4 266 - 439 201 Deprecia on charge of R167 544 (2017: R183 935) has been charged in the income statement (Refer note 14) Year ended 30 April 2017 Opening net book value - 590 862 4 266 - 595 128 Addi ons - 72 464 - - 72 464 Disposals and impairment (47 473) (2 500) (49 973) Deprecia on - (183 935) - - (183 935) Deprecia on Disposals 39 048 2 500 41 548 Closing net book value - 470 966 4 266 - 475 232 At 30 April 2017 Cost 226 903 1 115 715 183 513 7 000 1 533 130 Accumulated deprecia on (226 903) (644 749) (179 247) (7 000) (1 057 899) Net book value - 470 966 4 266 - 475 232 | 51
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION NOTES TO THE ECONOMIC INTEREST ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 2017 2018 Restated* Notes R R 7. INVESTMENT IN JOINT VENTURE Net share of results carried forward 11 003 282 8 459 659 Increase in Shareholder loan - - Share of profit in joint venture 775 691 2 543 623 Net share of results in Joint Venture 11 778 973 11 003 282 Investment in share capital 5 965 624 5 965 624 Carrying amount of investment 17 744 597 16 968 906 Interest in Joint Venture 17 744 597 16 968 906 NCU holds 1 ordinary share and 1 non redeemable, non-transferable, zero percentage preference share in Titans Cricket (Pty) Ltd. Northerns Cricket Union is represented by execu ve member's on the Titans Cricket (Pty) Ltd Board of Directors and have 50% vo ng rights Titans Cricket (Pty) Ltd holds a 66.67% shareholding in Easterns Titans (Pty) Ltd Assets and Liabili es of Titans Cricket (Pty) Ltd - Group: Property and equipment 39 568 411 32 568 301 Current assets 23 105 449 14 987 475 Non current liabili es 4 118 609 488 922 Current liabili es 24 286 895 14 148 938 * The amounts disclosed are a�er the restatement for the correc on of the error disclosed in note 17. 52 | NORTHERNS CRICKET UNION INTEGRATED REPORT 2017|2018
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION NOTES TO THE ECONOMIC INTEREST ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 2018 2017 Notes R R 8. INVESTMENTS: FINANCIAL ASSET AT FAIR VALUE THROUGH PROFIT AND LOSS Allan Gray Ini al capital invested 16 100 000 16 100 000 Cumula ve fair value gains less draw downs 9 969 283 8 701 690 26 069 283 24 801 690 Less: Drawdowns during the current year - - Revalua on to market value at year end 1 719 981 1 267 593 Closing value as at year-end 27 789 264 26 069 283 The investment relates to a Balanced Fund Trust investment with Allan Gray. The valua on of the fund is based on the market value as at repor ng date. The financial asset was designated at fair value through profit and loss at ini al recogni on. Fair value of the investment is determined at a Level 1, which is directly observable market data. The use of these funds is restricted in accordance with s pula ons of a special resolu on as described in the statement of changes in equity. Sanlam Investment Balance at the beginning of the year 823 671 771 501 Revalua on to market value at year end 96 670 52 170 Closing value as at year-end 920 341 823 671 Closing value as at year-end 28 709 605 26 892 954 The investment relates to shares held in Sanlam Ltd. The valua on of the investment is based on the market value of the shares at the repor ng date. The financial asset was designated at fair value through profit and loss at ini al recogni on. Fair value of the investment is determined at a Level 1, which is directly observable market data. 9. CONSUMABLES Sports equipment 666 097 561 108 666 097 561 108 | 53
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION NOTES TO THE ECONOMIC INTEREST ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 2018 2017 Notes R R 10. TRADE AND OTHER RECEIVABLES Trade receivables 2 529 106 1 907 891 Less: Provision for impairment of trade receivables (190 348) (278 707) Trade receivables -net 2 338 758 1 629 184 Pre-payments 124 040 7 250 Sundry Debtors 1 584 803 723 037 3 075 474 Amounts receivable from related par es 13 3 008 167 Fair value of trade and other receivables 6 144 519 6 346 195 All current receivables are due within one year from balance sheet date. The carrying value of trade receivables approximates their fair value. Trade receivables are evaluated for impairment on a quarterly basis. As of 30 April 2018, trade receivables of R866 604 (2017: R1 629 184) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows: Up to 3 months 2 338 758 1 331 012 Over 3 months 190 348 576 879 2 529 106 1 907 891 Movements on the provision for impairment of trade receivables At 1 May - - Provision for receivables impairment 190 348 - Receivables wri en off during the year as uncollec ble - - At 30 April 190 348 - The crea on and release of provision for impaired receivables have been included in ‘administra ve expenses’ in the income statement. Amounts charged to the allowance account are generally wri en off, when there is no expecta on of recovering addi onal cash. The other classes within trade and other receivables do not contain impaired assets. The maximum exposure to credit risk at the repor ng date is the carrying value of each class of receivable men oned above. The group does not hold any collateral as security. 54 | NORTHERNS CRICKET UNION INTEGRATED REPORT 2017|2018
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION NOTES TO THE ECONOMIC INTEREST ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 2018 2017 Notes R R 11. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of: Cash and cash equivalents balances: 889 631 1 318 201 Cash on hand 2 001 2 000 Call deposit 73 063 6 225 Current account 814 567 1 309 976 889 631 1 318 201 The Northerns Cricket Union has a facility of R2 million with Standard Bank Limited. The facility is unsecured. Interest on overdra� facili es is charged at prime plus 0.6% 12. NOTES TO THE CASH FLOW STATEMENT (Loss)/Profit for the year before share of income/losses from joint venture (655 502) 2 370 142 Adjustments for non cash items and other items: - Deprecia on 167 545 183 935 - Net finance expense from non related par es 28 096 7 043 - Finance income from related par es (438 067) (450 068) - Finance Expence from related par es 1 218 - Fair value of investment (1 816 651) (1 319 762) Net (loss)/profit before working capital changes (2 714 579) 792 508 Working capital changes 2 036 096 (1 640 934) Increase / (decrease) in accounts payable and provisions 1 939 409 (185 114) (Increase) in consumables (104 989) 187 361 (Increase) in trade and other receivables 201 676 (1 643 181) Cash generated from / (u lised in) opera ons (678 482) (848 426) | 55
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION NOTES TO THE ECONOMIC INTEREST ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 2018 2017 Notes R R 13 RELATED PARTIES The Union holds a 50% equity share in Titans Cricket (Pty) Ltd. Titans Cricket (Pty) Ltd holds 66,67% share in Easterns Titans (Pty) Ltd. The following transac ons were carried out with related par es: Intergroup balances with related par es: Current account - Easterns Titans (Pty) Ltd 2 188 535 1 986 860 Current account - Titans Cricket (Pty) Ltd 886 939 1 021 307 3 075 474 3 008 167 No provision for impairment was made on related party balances. The related party balances are current accounts, bear interest at prime plus 0.6% and have no fixed repayment terms. Key management compensa on Salaries and other short-term employee benefits 2 324 924 4 202 995 Transac ons with related par es: Management fees received from Easterns Titans (Pty) Ltd (2 632 890) (2 268 966) Management fees received from Titans Cricket (Pty) Ltd (2 451 311) (2 457 310) Admin recovery fees received from Titans Cricket (Pty) Ltd (561 060) (613 037) Admin recovery fees received from Easterns Titans (Pty) Ltd (326 769) (482 490) Interest received from Easterns Titans (Pty) Ltd (189 534) (449 812) Interest paid to/(received from) Titans Cricket (Pty) Ltd (248 503) 1 218 Municipal charges recovery received from Titans Cricket (Pty) Ltd (2 659 332) (2 508 804) Rental paid to Titans Cricket (Pty) Ltd 368 712 337 716 (8 700 687) (8 441 485) 56 | NORTHERNS CRICKET UNION INTEGRATED REPORT 2017|2018
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION NOTES TO THE ECONOMIC INTEREST ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 2017 2018 Restated* Notes R R 14 ADMINISTRATIVE EXPENSES Expenses by nature Employee benefit expense 10 232 185 9 842 904 Deprecia on 167 545 183 935 Opera ng lease payments 210 885 313 935 Stadium facili es hire - SuperSport park 368 712 337 716 Municipal expenses 2 637 855 2 962 136 Auditors' remunera on 208 689 375 603 Sta onery, prin ng, photocopies and postage 303 482 317 117 Telephone expenses 415 541 421 651 Motor vehicle expenses 321 680 250 488 Other expenses 2 144 991 (2 115 272) 17 011 565 12 890 215 Employee benefit expense Wages and salaries 10 232 185 9 842 904 10 232 185 9 842 904 Number of employees 49 41 15 DIVIDEND RECEIVED Dividend income from Sanlam investment 26 956 24 911 16 TRADE & OTHER PAYABLES Trade payables 1 650 926 1 792 970 Other payables 261 156 310 438 Accruals 2 809 289 1 517 421 Funding accounts 3 630 514 2 587 241 Amounts payable to related par es 13 - - 8 351 885 6 208 069 Provisions - Provisions for other liabili es and charges 204 407 Provision for other liabili es and charges At 1 May 204 407 204 385 Addi onal provisions - (115 317) U lised during year (204 407) 115 339 - 204 407 At 30 April Analysis of total provisions Staff expenses - 3 798 Club champs expenses - 40 956 Other - 159 653 - 204 407 | 57
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION NOTES TO THE ECONOMIC INTEREST ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 2017 as previously Increase/ 2017 reported (Decrease) Restated 17 CORRECTION OF ERROR IN ACCOUNTING FOR JOINT VENTURE & YOUTH EXPENSES In the prior year the useful lives of the Property and Equipment of the Venture (Titans Cricket Pty(Ltd)) was not reassessed. This caused a prior year error and was corrected by re-es ma ng the useful lives in the prior year resta ng the prior year figures. Further in the prior period Youth and Development Cricket expenses were incorrectly classified as part of the Income line item rather than the Expense line item. The errors have been corrected by resta ng each of the affected financial statement line items of the prior year. The impact of these restatements can be summarised as follows. Economic Interest Balance Sheet (extract) Current assets 16 487 440 Investment In Joint Venture 481 466 16 968 906 Total Assets 52 081 129 481 466 52 562 596 Retained Earnings 33 476 751 481 466 33 958 217 Total equity and liabili es 52 081 129 481 466 52 562 596 Economic Interest Statement of Comprehensive Income (extract) Tournament contribu ons and youth cricket income 1 601 302 27 741 713 26 140 411 Youth and development cricket expenses - provincial 2 049 547 1 601 302 3 650 849 Opera ng Profit 608 573 - 608 573 Share of profit of Joint Venture 2 062 157 481 466 2 543 623 Net profit for the year 4 432 299 481 466 4 913 765 58 | NORTHERNS CRICKET UNION INTEGRATED REPORT 2017|2018
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION DETAILED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 APRIL 2018 UNAUDITED UNAUDITED 2018 2018 Notes R R DETAILED INCOME STATEMENT INCOME CSA Distribu on 13 216 718 13 129 612 Investment Income Fair value gain on investment 1 816 651 1 319 762 Dividend received 26 956 24 911 Recovery Of Tournament Expenses 4 181 896 4 978 564 Sponsorships 300 000 975 521 Lo o Funding - 302 501 Management Fees And Admin Recoveries Received From Related En es 8 631 362 8 330 604 TOTAL INCOME 28 173 583 27 460 174 | 59
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION DETAILED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 APRIL 2018 UNAUDITED UNAUDITED 2018 2018 Notes R R EXPENDITURE Administra ve Expenses Annual report and annual general mee ng 63 569 46 000 Auditors' remunera on 208 689 375 603 Bad debts wri en off 190 348 - Bank charges 130 121 135 750 Cleaning 42 910 16 950 Computer expenses 122 029 91 693 Deprecia on 167 545 183 935 Insurance 586 938 80 125 Legal and professional fees 27 888 62 115 Mee ng expenses 171 375 115 026 Motor expenses 321 680 250 488 Municipal expenses 2 637 855 2 962 136 Photographs 6 914 7 076 Loss on disposal of assets - 8 425 Skills Development Levies 145 290 118 419 Rental - office machines 210 885 313 935 - stadium facili es - SuperSport park 368 712 337 716 Repairs and maintenance 72 961 20 175 Salaries and wages 10 232 185 9 842 904 Staff refreshments & welfare 211 462 104 642 Sta onery, prin ng, photocopies and postage 303 482 317 117 Sundries 20 282 278 753 Telephone - Normal 349 126 334 351 Telephone - Cell phones 66 415 87 300 Training 70 580 93 627 Execu ve expenses 258 851 214 380 Workmens Compensa on 23 476 95 788 17 011 565 16 494 430 60 | NORTHERNS CRICKET UNION INTEGRATED REPORT 2017|2018
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION DETAILED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 APRIL 2018 UNAUDITED UNAUDITED 2018 2018 Notes R R EXPENDITURE (con nued) Affiliated Bodies Umpires associa on 341 706 362 431 Scorers associa on 128 790 203 055 Woman's cricket associa on 319 001 232 252 789 496 797 739 Youth & Development Cricket Schools Affilia on fees 136 950 21 106 Bursaries 69 880 196 703 Flicx Night League - (4 500) Sponsorship and Grants 926 553 254 949 Other expenses - 180 1 133 383 468 438 Provincial Provincial team and youth tournaments 1 703 649 3 443 265 Clothing and preliminary friendly matches 83 269 192 974 Telephone 9 079 14 610 1 795 997 3 650 849 Development Senior and junior development squads 5 500 182 493 Administra on 145 222 10 000 Coaching & travelling 1 905 357 1 357 634 Facility maintenance 2 751 448 482 850 4 807 527 2 032 977 Junior Girls Cricket 124 297 183 021 124 297 183 021 | 61
NORTHERNS CRICKET UNION NORTHERNS CRICKET UNION DETAILED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 APRIL 2018 UNAUDITED UNAUDITED 2018 2018 Notes R R EXPENDITURE (con nued) Mini Cricket Tournaments 14 661 4 336 Coaching 257 087 86 107 Transport - 700 Co-ordinators 13 800 15 000 Equipment 120 858 201 884 406 406 308 027 Amateur cricket development expenses Accommoda on (10 985) 19 135 (10 985) 19 135 Lo o Funding 108 525 309 034 Club Expenses 1 601 700 1 924 576 Tournament Expenses 1 471 145 944 914 TOTAL EXPENDITURE 29 239 056 27 133 141 OPERATING PROFIT FOR THE YEAR (1 065 473) (1 928 335) Net finance income 409 971 441 806 Share of profit of Joint Venture 775 691 2 543 623 NET PROFIT FOR THE YEAR 121 189 4 913 764 62 | NORTHERNS CRICKET UNION INTEGRATED REPORT 2017|2018
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