NCERA FARMS ANNUAL REPORT 20122013 Ncera Farms PtyLtd

NCERA FARMS ANNUAL REPORT 2012/2013

Ncera Farms (Pty)Ltd q q Vision A pace setter in the provision of farm management training as trade and the creation of smallholder farmer support and development model Mission Ncera (Pty)Ltd is a training and development academy that focuses on innovation and inclusive farm management within the context of commodity based agriculture

Ncera Farms(Pty Ltd) Background 3200 ha 2200 ha=10 Farmers leasing. 18000 people, 80% unemployment. 1000 ha, Centre, Tunnels, Workshop. Beef, Mechanization, Vegetables 30 -40 km to East London -+700 mm per annum Deep Soils Vegetation Encroachment

Staff composition 8 Staff members, CEO, CFO, Extension Officer, Tractor Mechanic, Farm Manager, Accounts Officer, and Personal Assistant, Receptionist 26 workers, Workshop, Lands, Tunnells, Beef Animals.

Performance overview Governance systems and procedures Target Achieved/not achieved Comments Appointment of the board Not achieved No funding 4 Board meetings planned Not achieved No funding Appointment of Audit Committee Not Achieved No funding 4 Audit Committee meetings planned Not Achieved No Funding

Performance overview cont. Mechanisation Target Achieved/Not Achieved Comments Repairing 8 tractors, vehicles and truck 7 tractors repaired, 4 bakkies repaired Ploughs were repaired, 1 truck was repaired Repairs are done when needed

Performance overview cont. Vegetable production Target Achieved / Not Achieved Planted various Achieved vegetables like Butternuts, spinach, cabbages etc, in a small scale for local market Comments Tomatoes and Green Peppers on Tunnels, others on open small plots. Some vegetables were sold to the market and some to the locals

Performance overview cont. Livestock Target Achieved/ not achieved Comments 215 goats purchased Achieved 69 ewes in lactation, 70 kids, 35 pregnant, 37 young ewes, 3 Boer rams, 1 Savana ram 49 Nguni cattle purchased Achieved 39 pregnant heifers, 4 cows, 4 calves, 2 Bulls, 1 young 1 mature bull

ACHIEVEMENTS 49 kids were born from 34 pregnant Ewes=144% kidding rate

ACHIEVEMENTS CONT. Built a new shed, corrugated iron , netting wire and purlins purchased, rest of material, harvested. Dipping tank for footrot was constructed.

ACHIEVEMENTS CONT.

NGUNI CATTLE

Nguni Cattle

Achievements cont. 18 calves were born , 11 females and 7 males No mortality Good adaptability Great weight gain Good condition Well managed livestock, vaccination, dipping and dosing program in place

CHALLENGES Goats- 14% mortality=30 goats Causes: Sept/Oct received 426 mm of rain 31% heart water, 51% internal parasites, especially conical fluke agravated by unsual rainfall, which was treated by Conifluke+tape 18% ORF’s disease, Pneumonia, accidental, suspect plant poisoning

CONCLUSION-AS AT TO DATE 93 Nguni Cattle 2 Bulls, 38 Calves, 53 Cows 314 GOATS 4 Rams, 151 Ewes, 34 Kaparters, 125 Kids(68 males, 57 females)

FINANCIAL REPORT FOR 2012/13 The entity maintained the record of the unqualified audit report There was no irregular, unauthorised and fruitless and wasteful expenditure incurred by the entity in 2012/13 financial year Most of the budget allocation is for compensation of employees, other administrative expenses and little for programmes Due to the lack of funding the entity is not in compliance with the corporate governance as there is No Board of directors No audit committee and Internal auditors

2012/13 Financ. IAL REPORT . YEAR BUDGET ALLOCATION ACTUAL EXPENDITURE VARIANCES 2011/12 Allocation R 4 291 000 R 19 104 2012/13 Allocation R 4 989 000 R 4 859 889 R 129, 111

2012/13 FINANCIAL REPORT CONT. STATEMENT OF FINANCIAL POSITION - Description 2012/13 2011/12 Variance Inventory R 896 100(CA R 79 462 R 535 664) R 816 638 Cash & cash equivalents R 959 818 R 730 487 R 1 690 305 There were no major movements except for the following: Inventory(Cattle and Goats)- Inventory with an amount of R 896 100 was acquired during the year Cash & cash equivalent – Auction of the dairy cattle took place just before the end of the financial year in 2011/12. Therefore amount received was included in the cash & cash equivalent

2012/13 FINANCIAL REPORT CONT. STATEMENT OF FINANCIAL PERFORMANCE Description 2012/13 2011/12 Variance Other income R 4 989 000 R 4 291 000 R 698 000 Administrative expenses R 5 320 977 R 3 796 522 R 1 524 455 There are no major movements between 2012 and 2013 on the Revenue(budget allocation), hence there are no major movements on the expenditure(except for the explanation below). Movements on the administrative expenses were as the results of the inflation related increases on salaries and other overhead, other non cash items(such as Inventory written down(cattle and goat), loss of sale of assets(old assets), depreciation) and salary of the CFO account for the full year, as compared to the previous year

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