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AFRICAN DAWN Annual Report 2016

Directors’ Report The directors have pleasure in submitting their report on the financial statements of Afdawn for the year ended 29 February 2016. 1. Review of activities General information Nature of business Afdawn was formed in 1998 as a micro finance company which, following its listing on the Alternative Exchange of the JSE in 2004, grew into a niche finance provider. The Group, through its wholly owned subsidiaries, Elite and Elite Two, provides unsecured personal loans (micro finance). In 2013, Afdawn Group changed its focus and became an active investment holding company that acquires shares in entrepreneurial companies that have a strong innovation drive and are in a proven growth phase and enhances the capabilities of these entities to accelerate long term sustainable growth. This change of focus began with the acquisition of 100% of Knife Capital Group in March 2014. Group details The Group’s place of domicile and country of incorporation is the Republic of South Africa and it has an AltX listing on the JSE Limited. Information relating to the subsidiaries of the company is in note 6. Review of operations The operating results and the state of affairs of the Group are fully set out in the attached statements of financial position, statements of profit or loss and other comprehensive income, statements of changes in equity, statements of cash flows and the notes thereto. The group’s loss attributable to shareholders amounted to R6,9 million (2015: R33 million). 2. Going concern The consolidated and separate financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going concern are outlined in note 1.19. 3. Contingencies There are various contingencies at the reporting date. Refer to note 34. 4. Major transactions, events and disclosure changes The major transactions and events during the year were: • SARS – refer to note 12 • Related party transactions – refer to note 35 5. Events after the reporting period There are various events after the reporting period. Refer to note 38. AFRICAN DAWN ANNUAL REPORT 2016 29


AFRICAN DAWN Annual Report 2016
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