2013 PGC Annual Report

ANNUAL REPORT 2012 - 2013

Related Party Transactions Company

Rent Paid to (received from) Related Parties 2013 2012
R R
Grosskopf Attorneys
(202 725) (444 781)
Related Party Transactions
Company
Shared Service Fee
2013 2012
PGC Management Services (Pty) Ltd R R

Related Party Transactions (33 600 000) -

Management Fees Paid (received from) RelatedParties Company

Grosskopf Attorneys 2013 2012
PGC Management Services (Pty) Ltd R R

Related Party Transactions 1 987 856 5 758 822
(18 000 000) -
Services Rendered by a Director (16 012 144)
5 758 822
Grosskopf Attorneys
Company
Related Party Transactions
2013 2012
Gifts in Cash to Related Parties R R

Police and Prison Civil Rights Union - National Office Bearers 9 335 274 9 059 328

Company

2013 2012
R R

- 100 000

103

ANNUAL REPORT 2012 - 2013

Related Party Transactions Company

Referral Fee Paid to Related Parties 2013 2012
R R
PGC Management Services
Police and Prisons Civil Rights Union 36 417 466 -
12 451 978 -
Related Party Transactions 48 869 444 -

Administration Fees Paid to Related Parties Company

Grosskopf Attorneys 2013 2012
R R
Related Party Transactions
1 543 661 -
Sale of Assets
Company
PGC Management Services (Pty) Ltd
2013 2012
R R

75 000 -

34. Directors’ remuneration

Executive Emoluments Bonuses Other Total
2013 benefits
7 458 798 24 757 270 34 414 534
In connection with the affairs of the company 2 198 466

Executive Emoluments Bonuses Other Other Total
2012 compensation benefits

In connection with the affairs of 7 645 509 13 550 000 10 000 000 1 490 960 32 686 469
the company

In the current year, the remuneration of the executive directors was paid by PGC Management Services (Pty) Ltd, a
related company which shares are held by Popcru Trust. The remuneration paid is thus included in the management
fee paid to PGC Management Services (Pty) Ltd as reflected under note 33 above.

104

ANNUAL REPORT 2012 - 2013

Non-executive Attendance at Total
2013 meetings
493 481
Services as directors 493 481
Total
Non-executive Attendance at
2012 meetings 378 049

For services as directors 378 049

35. Prior period errors

Various errors in respect of the prior financial years were noted during the audit of the 2013 financial year.
The errors have been corrected and resulted in the following adjustments:

Statement of Financial Position Group Company

Decrease in provision for impairments of 2013 2012 2013 2012
the loans to subsidiaries R R R R
Increase in deferred tax asset
(Increase) in current tax payable -- - 30 324 224
Decrease in trade payables
(Decrease) in trade receivables - 205 661 --
Increase in property, plant and equipment - (1 677 547) --
(Increase) in finance lease liability - 81 665 --
(Decrease) in other financial assets - (18 615) --
Decrease in available for sale reserve - 2 237 924 --
Decrease in deferred tax liability - (2 380 978) --
(Increase) in accumulated depreciation - (127 162 767) --
(Increase) in retained earnings - 117 362 851 --
(decrease) in goodwill - 17 374 698 --
- (23 144) --
- (2 888 643) - (30 324 224)
- (3 111 105) --
-- --

105

ANNUAL REPORT 2012 - 2013

Profit or Loss Group Company

Decrease in impairments 2013 2012 2013 2012
Increase in income tax expense R R R R
(Decrease) in finance cost
Decrease in other income -- - (30 324 224)
(Decrease) in operating expenses
(Increase) in investment revenue - 2 476 526 --
Increase in depreciation
Increase in amortisation - 182 663 --

- 11 854 --

- (113 937) --

- (4 056 619) --

- 23 144 --

- 511 415 --

- (964 954) - (30 324 224)

36. Comparative figures

Certain comparative figures have been reclassified during the 2013 financial year. This was done to achieve fair
presentation in the annual financial statements. The effects of the reclassification are as follows:

Statement of Financial Position Group Company

Statement of Financial Position 2013 2012 2013 2012
R R R R
(Decrease) in other financial assets
Increase in trade and other receivables - (1 016 153) - -
- 1 016 153 - -
- -- -

Profit or Loss - (19 522 807) - -
- 19 522 807 - -
Revenue - Rendering of services -- - -
Employee costs

The directors’ remuneration for 2012 has also been restated to be consistent with the disclosure as per 2013.

106

ANNUAL REPORT 2012 - 2013

Detailed Statement
of Comprehensive
Income

Revenue Note(s) Group Company
21
Commission 2013 2012 2013 2012
Premiums received R R R R
Miscellaneous other revenue
Referal Fee 154 021 660 163 749 807 554 922 441 385
Rendering of services
Rental Income 126 459 420 113 214 414 --

290 026 54 458 --

-- - 33 788 548

116 014 099 149 423 709 --

2 505 680 (31 545) --

399 290 885 426 410 843 554 922 34 229 933

Cost of Sales Note(s) Group Company

Opening stock 2013 2012 2013 2012
Purchases R R R R
Closing stock
(752 397) - --
Gross profit
(158 851 590) (184 528 400) --

662 823 752 397 --

(158 941 164) (183 776 003) --

240 349 721 242 634 840 554 922 34 229 933

107

ANNUAL REPORT 2012 - 2013

Other Income Note(s) Group Company
23
Administration and management 23 2013 2012 2013 2012
fees received R R R R
Discount received
Dividend revenue 11 626 176 345 480 - 4 105 263
Fair value adjustments
Gains on disposal of assets 36 073 - 36 073 -
Loans writen off 435 941 337 945 144 980 312 135 194
Interest received 2 972 276 (470 202) (603 072)
Other income 446 827 1 377 276 4 068 081 471 351
Recoveries 306 906
25 720 - - -
10 765 240 11 201 094 1 217 422
5 295 415
3 326 009 2 500 133 - 221 653
- 1 435 264 - 104 448
16 726 990 5 652 259
29 634 262 154 686 787

Note(s) Group Company

22 2013 2012 2013 2012
24 R R R R

Expenses (Refer to page 55) (217 915 535) (218 029 104) 4 978 484 (51 263 442)
Operating profit (loss)
Finance costs 52 068 448 41 332 726 160 220 193 (11 381 250)
Income from equity
accounted investments (2 073 356) (819 409) (2) (410 240)

Profit (loss) before taxation - (488 885) --
Taxation
Profit (loss) for the year (2 073 356) (1 308 294) (2) (410 240)
160 220 191 (11 791 490)
49 995 092 40 024 432
1 150 676 508 885
25 12 292 716 23 626 965 159 069 515 (12 300 375)

37 702 376 16 397 467

108

ANNUAL REPORT 2012 - 2013

Operating Expenses Note(s) Group Company

2013 2012 2013 2012
R R R R

Accounting fees 657 316 331 586 --

Administration and 64 123 737 7 592 736 20 631 296 414
management fees
Advertising 4 791 142 4 649 579 60 062 299 387
Annual returns 23 703 28 261 9 550 7 994
- -
Assessment rates & municipal 1 021 772 340 667
charges
Assets under R5 000 26 - 92875 - 8005
Auditors' remuneration 2 052 227 3 623 899 75 000 97 290
9 109 077
Bad debts 1 557 293 207 035 - -
1 415 887 33 903 25 153
Bank charges 52 544
153 213 224 136 - -
Board fees 682 749 525 557 2 727 268 209
1 208 502 690 649 569 392
Broker fees 1 109 085 -
- 1 494 558 - -
Cleaning 80 051 - -
561 777 79 161 - -
Collection costs 2 281 110 176 124 - 999
4 124 089 2 105 851 - -
Commission paid 5 443 261 3 245 583 - 1 353 059
4 753 654 177 000 1 549 174
Compliance fees
(1 481 704) 44 140 969 (7 511 440) 10 451 920
Computer expenses
60 772 3 349 182 50 000 3 207 962
Concession fees 63 476 167 92 473 567 1 218 640 25 296 733

Conference and meetings 299 963 623 552 12 684 582 873
11 404 11 404 - -
Consulting and professional
fees 981 006 3 488 368 - 215 475
Depreciation, amortisation
and impairments
Donations

Employee costs

Entertainment

Environmental assessment
costs
Fines and penalties

109

ANNUAL REPORT 2012 - 2013

Operating Expenses Note(s) Group Company

First Aid 2013 2012 2013 2012
Gifts R R R R
Guest amenities
Hire 1 070 62 --
Insurance
Laundry expenses 19 506 857 324 4 900 508 164
Lease rentals on operating
lease 101 673 126 110 --
Legal claims paid
Legal expenses 276 033 402 805 --
Levies
Licences 3 147 929 2 271 097 136 807 215 024
Loss on disposal of assets
Loyalty cards 262 324 307 485 --
Marketing fees
Motor vehicle expenses 5 278 710 4 434 421 643 078 1 239 991
Ombudsman expenses
Other expenses 18 271 028 10 271 738 - -
Petrol and oil 1 351 611 2 733 169 - 937 845
Placement fees 167 397 156 440 -
Postage 935 - - -
Printing and stationery 2 723 768 129 817 - -
Provision for warranties 2 127 075 - - -
Relocation costs 179 777 1 020 805 - -
Repairs and maintenance 979 380 947 750 - 696 177
Royalties and license fees 277 041 - - 49 829
Scanning project (33 264) 126 572 - -
Security 628 154 524 306 - -
- 20 600 - 65 002
686 765 1 036 088 - -
1 634 622 1 676 851 - 100
1 409 142 - - 599 238
25 502 - - -
2 067 365 1 108 821 1 099 -
42 556 31 259 - 537
- 375 728 - -
542 457 949 000 36 106 241 200
703 065

110

ANNUAL REPORT 2012 - 2013

Operating Expenses Note(s) Group Company

Software expenses 2013 2012 2013 2012
Sponsorships R R R R
Staff welfare
Subscriptions 265 996 402 698 --
Telephone and fax
Training 331 931 - --
Transport and freight
Travel - local 807 792 963 256 - 108 380
Utilities
Utilities 162 383 228 958 250 36 400

3 347 977 3 508 671 - 252 797

4 180 730 1 408 493 - 231 923

311 404 289 642 --

2 911 885 3 221 405 50 519 1 147 731

2 155 710 1 807 396 --

217 915 535 218 029 104 (4 978 484) 51 263 442

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PGC House | 273 Paul Kruger Street | Pretoria | 0001

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