Touch09

TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
(Registration number: 2007/024885/08)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED
28 FEBRUARY 2009
TOUCH AFRICA REHABILITATION ASSOCIATION
Registration number : 2007/024885/08
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
28 FEBRUARY 2009
CONTENTS
Contents and approval of the annual financial statements
Supplementary schedulesDetailed Comprehensive Income Statement RESPONSIBILITY, CONFIRMATION AND APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS
The annual financial statements, which appear on pages 4 to 11, are the responsibility of the Directors.
The Directors are responsible for selecting and adopting sound practices, for maintaining an adequate andeffective system of accounting records for the safeguarding of assets, and for developing and maintaininga system of internal control that, amongst other things, will ensure the preparation of financial statementsthat achieve fair presentation.
After conducting appropriate procedures the Directors are satisfied that the company will be a goingconcern for the foreseeable future and have continued to adopt the going concern basis in preparing thefinancial statements.
The annual financial statements were approved by the board of Directors, on the date set out below andsigned by them:
M.G. GLOVER
(Duly authorised thereto in writing)
TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
2007/024885/08
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
28 FEBRUARY 2009
GENERAL INFORMATION
To Establish an Organization to RehabilitateSchools, Clinics & other Community Facilities andRaising Funds for these purposes.
Association incorporated under Section 21 Standard Bank Current acc : 08 031 669 7Branch code: 050-107 6 Bond StreetMount CroixPort Elizabeth6001 Royden Bryan WhitfieldProfessional Accountant (SA)6 Bond StreetMount CroixPort Elizabeth6001 HDP IncorporatedRegistered Accountants and Auditors62 Cape RoadMill ParkPort Elizabeth6001 H D P Incorporated
REGISTERED ACCOUNTANTS AND AUDITORS
62 Cape Road, Mill Park, Port Elizabeth, 6001 P O Box 27105 Greenacres Port Elizabeth 6057 SA QUALIFIED REPORT OF THE INDEPENDENT AUDITOR TO THE SHAREHOLDERS OF
TOUCH AFRICA REHABILITATION ASSOCIATION
FOR THE YEAR ENDED 28 FEBRUARY
We have audited the annual financial statements set out on pages 4 to 11 for the year ended 28 FEBRUARY 2009. Thesefinancial statements are the responsibility of the company’s directors. Our responsibility is to express an opinion on thesefinancial statements based on our audit.
Directors
The directors are responsible for the maintenance of adequate accounting records and the preparation and integrity of the
financial statements and related information.
The auditors are responsible to report on the fair presentation of the financial statements. The directors are also responsible for the company's system of internal financial control. These are designed to providereasonable, but not absolute, assurance as to the reliability of the financial statements, and to adequately safeguard, verify andmaintain accountability of assets, and to indicate that any material breakdown in the functioning of these controls, proceduresand systems has occurred during the year under review.
The financial statements have been prepared on the going concern basis, since the directors have every reason to believe that thecompany has adequate resources in place to continue in operation for the foreseeable future. Scope
We conducted our audit in accordance with statements of South African Auditing Standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement.
An audit includes:- examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,- assessing the accounting principles used and significant estimates made by management, and- evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinion.
Qualification
The accounting records pertaining to the processing of source documentation were not adequate. This has an impact on the
balance sheet.
Audit opinion
Except for the matters discussed in the preceeding paragraph, the financial statements fairly present, in all material respects, the
financial position of the company at 28 February 2009 and the result of its operations and cash flows for the year then ended, in
accordance with General Accepted Accounting Practice for Small and Medium-sized Entities (GAAP for SME’s), and in the
manner required by the South African Companies Act No. 61 of 1973, as amended.
Supplementary schedules
The supplementary schedules set out on pages 12 to 15 do not form part of the annual financial statements and are presented as
additional information. We have not audited these schedules and accordingly we do not express an opinion on them.
HDP (CA) SA
Registered Accountants and Auditors
Port Elizabeth
Hayden du Preez Incorporated. Reg No.2007/022527/21 Director: H. du Preez Bcom Hons (CA) SA TOUCH AFRICA REHABILITATION ASSOCIATION
Registration number:
2007/024885/08
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2009
The directors present their report for the year ended 28 FEBRUARY 2009. This report forms part of the auditedfinancial statements.
1. General review
The company’s business and operations and the results thereof are clearly reflected in the attached financialstatements. No material fact or circumstance has occurred between the accounting date and the date of this report.
2. Subsequent events
There have been no facts or circumstances of a material nature that have occurred between the accounting date andthe date of this report.
3. Directors and secretary
The directors of the company as reflected by CIPRO are: The secretary of the company as reflected by CIPRO is:J-L MURRAY-SMITH 6. Auditors
HDP Incorporated will continue in office in accordance with section 270(2) of the South African Companies ActNo.61 of 1973.
TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
Registration number : 2007/024885/08
STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 28 FEBRUARY 2009
TOTAL ASSETS
EQUITY AND LIABILITIES
( 99,636)
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
Registration number : 2007/024885/08
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2009
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
Retained
TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
Registration number : 2007/024885/08
STATEMENT OF CASH FLOW FOR THE YEAR ENDED 28 FEBRUARY 2009
Cash flows from operating activities
Profit/(loss) before tax
Adjustments for: - Finance charges Operating profit before working capital changes Cash flows from investing activities
Cash flows from financing activities
Increase in non-interest bearing borrowings Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
Registration number : 2007/024885/08
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2009
The annual financial statements have been prepared in accordance with South African Statements of GenerallyAccepted Accounting Practice, for Small and Medium-sized Entities (GAAP for SME's), and the Companies Act ofSouth Africa.
The annual financial statements for the year ended are prepared on the historical cost basis and incorporate thefollowing principle accounting policies which are consistent with those of the previous year.
1. ACCOUNTING POLICIES
1.1 Revenue
Revenue is recognised when the risks and rewards of ownership are transferred to the purchaser.
1.2 Financial instruments
Loans
Loans to group entities are recognised initially at fair value plus direct transactions costs.
The initial fair value of such loans is the cash consideration given or received. However, when there is evidence thatthe fair value is different to the cash consideration given or received, the initial fair value is determined using avaluation technique and by applying terms and conditions on similar or market-related loans. Any differencebetween the initial fair value of the loan and the cash consideration given or received is recorded in the incomestatement immediately.
Subsequently, these loans are measured at amortised cost using the effective interest rate method, less anyimpairment loss recognised to reflect irrecoverable amounts. The amortised cost method results in the accrual ofinterest in each period by applying the effective interest rate implicit to the loan to the outstanding balance on theloan. Any repayments received or paid reduce the loans.
The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument to the net carrying amount of the financial asset or financial liability.
Loan receivables where there are no determinable terms of repayment are included in non-current assets on the assumption that repayment will only occur after 12 months from the balance sheet date. In these situations, the amortised cost is calculated using the effective interest rate method over a 12-month discounting period.
Loan receivables that bear no interest and where there are no determinable terms of repayment are sometimesincluded in non-current assets on the assumption that repayment will only occur after 12 months from the balancesheet date. Any adjustment arising from applying the effective interest rate method over a 12 month period isignored if it is immaterial and the loan is then recorded at cost.
1.2 Financial instruments(continued)
Loans
When the estimates of receipts on loans to group companies are revised or the repayment terms contained within the
loan agreement are altered, the carrying amount of the loan is adjusted to reflect the revised cash flows by
computing the present value of the estimated future cash flows using the loan's original effective interest rate. Any
adjustment is recognised in the income statement.
On loans receivable an impairment loss is recognised in the income statement when there is objective evidence thatthe loan receivable is impaired. The impairment is measured as the difference between the investment's carryingamount and the present value of estimated future cash flows discounted at the effective interest rate computed atinitial recognition.
Impairment losses are reversed in subsequent periods when an increase in the investment's recoverable amount canbe related objectively to an event occurring after the impairment was recognised, subject to the restriction that thecarrying amount of the investment at the date the impairment is reversed does not exceed what the amortised costwould have been had the impairment not been recognised.
Trade receivables
Trade receivables are recognised and carried at original invoice amount less an allowance for any uncollectible
amounts. An allowance for estimated irrecoverable amounts is recognised in the income statement when there is
objective evidence that the asset is impaired. Where there was an arrangement for a deferred payment from a
debtor, then the amount is carried at amortised cost, with the subsequent increase in the debtor being recognised as
interest.
Trade payables
Trade payables are recognised and carried at original invoice amount less repayments. Where payment has been
deferred beyond the normal payment terms the trade payables are then subsequently measured at amortised cost,
with the creditor being discounted its present value. The increase in the creditor over the terms of the payment is
subsequently recognised as interest income.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and other short term deposits, deposits with an original maturity
of three months or less. Cash and cash equivalents are short-term highly liquid investments that are readily
convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are
initially and subsequently recorded at fair value.
For purposes of the cash flow statement, cash and cash equivalents comprise cash and cash equivalents definedabove, net of outstanding bank overdrafts.
2. LOANS RECEIVABLE
The loans bear no interest and have no fixed terms of repayment.
3. TRADE AND OTHER RECEIVABLES
4. CASH AND CASH EQUIVALENTS
5. GENERAL FUND
6. NON-INTEREST BEARING BORROWINGS
Unsecured
Loan : Cherry Place (Pty) Ltd
The loan is repayable at the discretion of the directors.
7. TRADE AND OTHER PAYABLES
8. REVENUE
Revenue comprises the invoiced value of goods supplied and services rendered, exclusive of value-added tax.
9. TRANSACTIONS WITH RELATED PARTIES
Nature of
Related party
transaction
Loans
Cherry Place (Pty) Ltd
Start-up costs paid to related parties
RCP a div of RED CHERRY MEDIA HOLDINGS
Various operating expenses paid to related parties
RED CHERRY ADVERTISING
10. GUARANTEE
(a) The liability of the member is limited to the amount referred to in paragraph
(b) Each member undertakes to contribute to the assets of the company in the
event of its being wound up while he/she is a member or within one yearafterwards, for payment of the debts and liabilities of the company contractedbefore he ceases to be a member, and of the costs, charges and expenses ofthe winding up, and for adjustment of the rights and the contributaries amountthemselves an amount of (ONE) R1,00 rand.
TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
Registration number : 2007/024885/08
SUPPLEMENTARY SCHEDULES NOT FORMING PART OF
THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2009

CONTENTS
Detailed statement of comprehensive income Notes to the detailed statement of comprehensive income The information in the supplementary schedules are in excessof those required by the South African Companies Act No.61of 1976, and have not been subject to the audit procedures applied to the financial statements.
Accordingly, no opinion is expressed on the supplementaryschedules.
TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
Registration number : 2007/024885/08
DETAILED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2009
( 99,636)
TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
Registration number : 2007/024885/08
NOTES TO THE DETAILED STATEMENT OF COMPREHENSIVE INCOME
TOUCH AFRICA REHABILITATION ASSOCIATION
Association incorporated under Section 21
Registration number : 2007/024885/08
TAX COMPUTATION FOR THE YEAR ENDED 28 FEBRUARY 2009
Profit/(Loss) per the financial statements

Source: http://www.touchafrica.info/system/attachments/11/original/financials2009.pdf