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AFRICAN DAWN 2015 Annual Report

Directors’ Report The directors have pleasure in submitting their report on the financial statements of Afdawn for the year ended 28 February 2015. AFRICAN DAWN 32 ANNUAL REPORT 2015 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 is has an AltX listing on the JSE Limited. The registered office and principal place of business: is 2nd Floor, Waterfront Terraces, Tygervalley Waterfront, 7530, Cape Town. Information relating to the subsidiaries of the Company is set out 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 R33 million (2014: R23.8 million). 1. 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 1.20. 2. Contingencies There are various contingencies at the reporting date. Refer to note 39. 3. Major transactions, events and disclosure changes The major transactions and events during the year were: • Knife Capital acquisition - refer to notes 1.20, 20, 37 and 45 • NHFC liability – refer to note 17 • SARS – refer to note 13 • Restatements – refer to notes 42 and 43 • Liquidation of Nexus – refer to note 38 • Related party transactions – refer to note 40 • Segment reporting – refer to note 46


AFRICAN DAWN 2015 Annual Report
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