REPORT ON THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS INTRODUCTION

We have audited the consolidated and separate financial statements of the Industrial Development Corporation of South Africa Limited and its subsidiaries as set out on pages 84 to 150, which comprise the consolidated and separate statement of financial position as at 31 March 2016, the consolidated and separate statement of comprehensive income, statements of changes in equity and statement of cash flows for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information.

DIRECTORS’ RESPONSIBILITY FOR THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

The Board of directors, which constitutes the accounting authority, is responsible for the preparation and fair presentation of these consolidated and separate financial statements in accordance with the International Financial Reporting Standards and the requirements of the Public Finance Management Act of South Africa and for such internal control as the directors determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these consolidated and separate financial statements based on our audit. We conducted our audit in accordance with the International Standards on Auditing. Those standards require that we comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated and separate financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated and separate financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated and separate financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the financial position of the Industrial Development Corporation of South Africa Limited and its subsidiaries as at 31 March 2016 and its financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards and the requirements of the Public Finance Management Act.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the Public Audit Act of South Africa and the General Notice issued in terms thereof, we have a responsibility to report findings on the reported performance information against predetermined objectives of selected objectives presented in the annual performance report, compliance with legislation and internal control. The objective of our tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, we do not express an opinion or conclusion on these matters.

PREDETERMINED OBJECTIVES

We performed procedures to obtain evidence about the usefulness and reliability of the reported performance information of the following selected objectives presented in the Director’s report as set out on pages 79 to 81 of the annual report of the Industrial Development Corporation of South Africa Limited for the year ended 31 March 2016, and reported thereon to the directors/ Accounting Authority:

  • Development impact: Expected jobs created/saved on pages 80 to 81.
  • Development impact: Actual jobs created/saved on pages 80 to 81.
  • Development impact: Value of funding to black industrialists, women and youth on pages 80 to 81.
  • Development impact: Funding for transactions for localisation initiatives on pages 80 to 81.
  • Financial sustainability and efficiency: Level of impairments on pages 80 to 81.
  • Financial sustainability and efficiency: Cost to income ratio on pages 80 to 81.
  • Financial sustainability and efficiency: Growth in reserves on pages 80 to 81.
  • People: People turnover on pages 80 to 81.
  • Subsidiaries: SEFA balanced scorecard on pages 80 to 81.

We evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned objectives. We further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information.

We assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

We did not identify any material findings on the usefulness and reliability of the reported performance information for the selected objectives.

ADDITIONAL MATTERS

Although we identified no material findings on the usefulness and reliability of the reported performance information for the selected objectives, we draw attention to the following matter:

Achievement of planned targets
Refer to the information in the Director’s report on the performance information as set out on pages 79 to 81 of the annual report for information on the achievement of the planned targets for the year.

COMPLIANCE WITH LEGISLATION

We performed procedures to obtain evidence that the Industrial Development Corporation of South Africa had complied with applicable legislation regarding financial matters, financial management and other related matters. We did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the Public Audit Act.

INTERNAL CONTROL

We considered internal control relevant to our audit of the financial statements and compliance with legislation, but not for the purpose of expressing an opinion on the effectiveness of internal control. We did not identify any significant deficiencies in internal control. SizweNtsalubaGobodo Inc. Registered Auditor

SizweNtsalubaGobodo Inc.
Registered Auditor

sig malaba  sig manana

KPMG Inc.
Registered Auditor

Per S Malaba
Chartered Accountant (SA)
Registered Auditor
Director 

23 August 2016

KPMG Crescent
85 Empire Road
Parktown
Johannesburg, 2193

Per D Manana
Chartered Accountant (SA)
Registered Auditor
Director

23 August 2016

SizweNtsalubaGobodo
20 Morris Street East
Woodmead
Johannesburg, 2191