2017 TOBACCO POOL ANNUAL REPORT - LTP · Deon Stoltz Snr Valuator Vaalwater (LPD) 073 376 2838...

ANNUAL REPORT 2017 TOBACCO POOL

LTP HOLDINGS (PTY) LTD

OPERATIONAL COMPANIES

SHAREHOLDERS AND RELATED COMPANIES

HEAD OFFICE POSITION CONTACT NUMBER: 014 596 5090 E-MAIL

Christo van StadenManaging Director (LTP/LTP Holdings)

082 806 4906 [email protected]

Banie VenterChief Financial Officer (LTP/TPD)


MC Dippenaar Chief Operational Officer (LTP) 083 284 4308 [email protected]

Zacharia MotsumiHuman Resources Manager/ Executive Director (TPD)


Coenraad Loots Risk Manager 072 780 3410 [email protected]

Hennie Buys Relationship Manager (TPD) 082 463 3662 [email protected]

Ben Smit IT Manager (LTP) 082 463 3662 [email protected]

Jan Gebhardt IT System Administrator (LTP) 082 300 7249 [email protected]

Dirk Lenting Production Manager (LTP) 072 369 4641 [email protected]

Deon Stoltz Snr Valuator Vaalwater (LPD) 073 376 2838 [email protected]

Sarel Haasbroek Snr Valuator Groblersdal (TPD)013 262 3087 072 635 1682

[email protected]

MacDonald Mosinki Valuator Rustenburg (TPD)014 595 5090 071 080 6647

[email protected]

Nellie Nkosi Data Clerk (TPD) 072 642 2488 [email protected]

Christel WillemseTobacco Admin Manager (Green) (TPD)


Zelda de BruinLogistics and Tobacco Adminnistration Manager (LTP)


Adel Smith Safety Officer (LTP) 072 422 5378 [email protected]

Miemie Smuts Financial Officer (LTP/TPD) 082 719 7079 [email protected]

Karin Prinsloo Head: Creditors (LTP/TPD) 076 379 7776 [email protected]

Danie Stoltz Maintenance Planner 079 915 6271 [email protected]

Anske Laas Personal Assistant (LTP) 064 686 5556 [email protected]

Anton Scholtz Chief Agronomist 083 626 8325 [email protected]

Deon Meyer Senior Agronomist 082 822 2491 [email protected]

Johan Riekert Senior Agronomist 082 783 1357 [email protected]

Henri du Plessis Senior Agronomist 082 821 9943 [email protected]

Dawie Geldenhuys Senior Agronomist 082 805 1283 [email protected]

TOBACCO AGRICULTURAL PRIMARY CO-OPERATIVE LIMITED (“TAC”)

Corrie Fourie Hail Fund: Administrator 084 871 4132 [email protected]

2017 TOBACCO POOL

TABLE OF CONTENTS

LTP HOLDINGS (Pty) Ltd 2

Chairman’s Report 2

Message from the Managing Director 4

LIMPOPO TOBACCO PROCESSORS (Pty) Ltd 5

Directors’ Report 6

Risk and Assurance Committee Report 12

Social and Ethics Committee Report 14

Financial Statements 16

TOBACCO PRODUCER DEVELOPMENT (Pty) Ltd 19

Directors’ Report 20

Financial Statements 24

General 26

Awarding of Trophies 28

Statistics 30

FINANCIAL POSITION OF SHAREHOLDERS AND RELATED COMPANIES 33

LTP Holdings (Pty) Ltd 34

The Tobacco Producer Development Trust 35

Tobacco Development Investment Holdings (RF) (Pty) Ltd 36

Southern African Tobacco Producers Holdings Ltd 37

DIRECTORS AND MANAGEMENT 38

Limpopo Tobacco Processors (Pty) Ltd 38

Tobacco Producer Development (Pty) Ltd 39

The Tobacco Producer Development Trust 39

Southern African Tobacco Producers Holdings Ltd 40

ADMINISTRATIVE INFORMATION 44

2017 TOBACCO POOL 1

CHAIRMAN’S REPORT

The Managing Director, Christo van Staden, in his 2016 annual report, predicted that 2016/2017 tobacco can be a record year for LTP and its producers if producers best utilize the circumstances to produce and deliver a top quality crop. We, as Directors, are grateful today to say that 2016/2017 has met many expectations. However, there are still many challenges that affect crop quality and the external environment is also not beneficial to the overall tobacco industry.

Positive aspects:

• After the serious drought of the previous season, the area on which tobacco was planted, has decreased by 15% (2017: 3 210 ha - 2016: 3 777 ha), but the yield only decreased by 6.13%. The highest average yield per hectare in history was achieved namely 3 308 kg / ha.

• The average pay out of R50.85 / kg to producers is also the highest ever and 17.44% higher than the R43.30 / kg for 2016.

• The average income per hectare is an amazing 29.7% higher from R129 716 / ha in 2016 to R168 245 / ha for 2017.

• The transfer stock also decreased by 36% (2017: 826 400 kg - 2016: 1 296 200 kg).

Negative aspects:

• • The order received from BATSA for 2018 is significantly lower due to the rise in illegal trade in cigarettes. Although the order is smaller, it still represents 80% of the tobacco crop. If illegal trade cannot be restricted, this trend may continue to receive smaller orders from BATSA my continue. The illegal trade also places a tremendous price pressure on the secondary industry, which in turn will overflow to the primary industry.

• • The interest free loan from BATSA is directly connected to the value of the order and as the order value decreases, the loan value also decreases. This influences the company on two fronts, namely:

• Interest costs; and• Advance payments

• • The current forecast is that with the increase of 13% in tobacco plantings for the coming season, an urgent market for ± 1 million kg of tobacco has to be found. The quality of this tobacco will determine its marketability. This, in turn, will have an impact on the completion of the 2018 pool.

The Board’s main task is to position the company strategically so that tobacco production will continue to be sustainable in South Africa.

2017 TOBACCO POOL 22

The Board Committees have again made a major contribution in the past financial year to facilitate the Board’s duties and also to ensure that the Board is assured that Management operates according to the approved policies and procedures. In the Risk and Assurance Committee, Mr Johan Geel made a great contribution as Chairman of the committee. However, Mr Geel resigned on 24 November 2017 as Director because he will fulfill the position of Financial Director of GWK with effect from 1 February 2018. His successor as Chairman of the Risk and Assurance Committee is Mr. Tinus Prinsloo, who also has a lot of experience in this regard.

I would like to thank my fellow directors, management, staff, producers, buyers, service providers and suppliers for their contribution to the successful completion of the 2017 crop.

The Board’s main task is to position the company strategically so that tobacco production will continue to be sustainable in South Africa.

Each year has its own challenges and if we respond proactively to the challenges and risks, 2018 will also be successful. May 2018 be a very blessed season for all.

Good progress is being made with the emerging producer development projects, which are being tackled in collaboration with BATSA. The sun cured project (SCV) has been expanded to 117 producers and the pilot project in Skuinsdrift, where sun cured producers switch to flue cured, is fully operational. With the installation of two centre pivots, tobacco crops and rotational crops can now be planted under irrigation. Seed maize is planted as a rotational crop under a Monsanto contract. The tobacco planting also looks good and compares very well with those of commercial producers of the region.

The Tobacco Agricultural Primary Co-operative Limited (“TAC”), which manages our own hail protection pool, was successful and achieved a surplus of 59% in the first season. The percentage of participation of producers, and especially producers who do not register their second plantings, remains a source of concern for the company because producers unnecessarily expose themselves to risks..

The Board has committed itself to King IV and compliance with ethical standards, good corporate governance and transparency remains the basis of decisions and actions by both the Board and Management.

RW OTTERMANN Chairman


MESSAGE FROMMANAGING DIRECTOR

LTP experienced a record year in 2016/2017 in terms of the average price paid to producers. Although growing conditions were more favorable than last season, better prices were largely due to the price increase granted by BATSA. In addition, BATSA, as in previous years, has bought most of the crop. The continued support of BATSA to the primary tobacco industry, while other local manufacturers do not buy one kilogram here, is once again a sign of their commitment to support local agriculture and to make the establishment of emerging producers a reality.

However, several factors can put pressure on BATSA to support the local industry in the next few years at the same levels. The worrying growth in illegal trade in cigarettes already causes a significant decline in cigarette consumption of legal brands, especially those of BATSA. This is clearly reflected in the order placed at LTP, which shows a decrease of almost one million kilograms for 2018. However, the Southern African Tobacco Institute (TISA) is working very hard to inform government agencies such as SARS and other government departments about the risks posed to agriculture and job creation as a whole. The industry is confident that the new president and his government will address the matter seriously.

The strengthening of the Rand since December and the expectation that this trend may continue in the new year will make the price of South African tobacco more expensive than most of our competitors. BATSA has not granted a price increase for 2017/2018 and this could further counter future price increases.

However, management is still of the opinion that the long-term success of the primary industry cannot be built on local sales alone, but on a balanced market that includes local and international buyers. The larger estimated crop of 2017/2018 requires LTP to find these international markets, which will give a good indication of how producers’ revenue will be influenced.

C van StadenManaging Director

2017 TOBACCO POOL 4

BLACK SHAREHOLDING55.23%

LIMPOPO TOBACCO PROCESSORS (PTY)LTD

2017 TOBACCO POOL 5

LIMPOPO TOBACCO PROCESSORS (PTY)LTDDIRECTORS’ REPORT

The Company is processing and marketing Flue Cured tobacco. The tobacco is procured from Tobacco Producer Development (Pty) Ltd (“TPD”). The Company fills orders received by tobacco buyers and also processes non-pool tobacco.

Limpopo Tobacco Processors (Pty) Ltd (“LTP”) and Tobacco Producer Development (Pty) Ltd (“TPD”) are developing emerging producers. The aim is to have black farmers produce a substantial portion of the South African Flue Cured tobacco crop.

LTP Holdings (Pty) Ltd

This Company is the holding company and also the founder company of the Tobacco Producer Development Trust.

After the successful transformation of LTP in 2015, the structure is as follows:

The Directors submit their report for the year ended 31 December 2017.

REVIEW OF ACTIVITIES ACTIVITIES OF THE OPERATING COMPANY AND HOLDING COMPANY

LTP HOLDINGS (PTY) LTDREG NO: 2003/012696/07

LIMPOPO TOBACCO PROCESSORS (PTY) LTD

REG NO: 1998/020096/07

TOBACCO PRODUCER DEVELOPMENT (PTY) LTD

REG NO: 2015/441055/07

THE TOBACCO PRODUCER DEVELOPMENT TRUST

REG NO: IT003829/2015T

AFGRI OPERATIONS (PTY) LTDREG NO: 1995/005872/07

SOUTHERN AFRICAN TOBACCO PRODUCERS HOLDINGS LTDREG NO: 2004/012018/06

PREF

EREN

TIA

LSH

ARE

S

ORD

INA

RYSH

ARE

S

100%

40%

ORD

INA

RYSH

ARE

S

ORD

INA

RYSH

ARE

S

100%

13.5%43.25%43.25%

60%

100%

ORD

INA

RYSH

ARE

S

ORDINARYSHARES

ORDINARYSHARES

ORDINARYSHARES

TOBACCO DEVELOPMENT INVESTMENT HOLDINGS (RF)

(PTY) LTDREG NO: 2015/427853/07

2017 TOBACCO POOL 6

Limpopo Tobacco Processors (Pty) Ltd

The Company is a 60% subsidiary of LTP Holdings (Pty) Ltd.

The Company’s main income source is from the processing of tobacco and the rental of property.

From 2016 TPD facilitates the tobacco pool for the South African Flue Cured tobacco producers.

The tobacco pool is season driven, which commences in January/February of each year after the first tobacco has been delivered.

The pool is finalised as soon as all the tobacco has been sold and the debtors have been recovered, as well as all other transactions of that pool are completed. To finalise a pool, it may be necessary to “sell” surplus tobacco to the next pool. The value of any surplus tobacco is determined by quality and potential sales value of the tobacco. The finalisation of the pool usually occurs by the end of February of the following year.

The Company also buys or processes tobacco from other companies and this business is used for creation of reserves, to support the pool and to increase thru-put. The Board of Directors aims to create reserves to the amount of at least 1% of pool turnover.

The Company also processes tobacco (Dark Air Cured tobacco) from Universal Leaf South Africa to increase the thru-put and therefore decreases unit cost.

The Tobacco Producer Development Trust has received an ex-gratia amount from the tobacco pool through TPD of R212 403. The Trust will use the funds for bursaries and/or training of agricultural students / graduates or new emerging producers.

Sun Cured tobacco

LTP’s direct input to previously disadvantage small scale farmers to produce Sun Cured tobacco and other crops total R5 321 464 for 2017(2016: R5 256 742).

LTP’s indirect contribution for 2017 were:• Interest subsidization: R492 235• Processing cost subsidization: R213 349

Emerging farmers: Flue Cured tobacco

LTP’s direct cost associated with the establishment of Flue Cured tobacco producers in Skuinsdrift amounts to R964 829 for 2017 (2016: R2 377 260).

Capital expenditure to date is R3 652 552.

Any new plantings and development will take place under the stewardship of TPD.

General

The processing results of LTP and the pool results of TPD will be reflected in the Directors’ report and the operating results will be reflected in the financial statement.

The consolidated FCV tobacco pool will not be finalised, due to the reporting date of 31 December 2017.

The outstanding price adjustment (LTP) and outstanding deferred payments will be reflected as a pool creditor in the annual financial statements of TPD. The costs to finalise the pool will also be reflected as pool creditors in either LTP’s or TPD’s annual financial statements.

The 2016 pool was finalised and closed on 28 February 2017.

SOCIAL RESPONSIBILITY

2017 TOBACCO POOL 7

LIMPOPO TOBACCO PROCESSORS (PTY)LTDDIRECTORS’ REPORTCONTINUED

2017 Flue Cured consolidated pool:

Consolidated pool results obtained from the pool accounts of LTP and TPD

Statistics

Unit cost R/kg % R/kg %

Advance payments 42.66 36.35

Expected deferred payments 8.19 19.22% 6.95 19.20%

Processing costs 6.04 4.93

Total payment to producers R R/kg R R/kg

Advance payments 453 005 945 42.66 411 262 093 36.35

Deferred payments 87 059 892 8.19 78 674 448 6.95

Total payments 540 065 837 50.85 489 936 541 43.30

Tobacco received 2017 2016

Producers 10 620 150 kg 11 314 244 kg

External companies / surplus 2 144 470 kg 1 676 610 kg

Total thru-put 12 764 620 kg 12 990 854 kg

2017 POOL 2016 POOL(FINAL)

2017 Flue Cured Pool 31 Dec 2017 28 Feb 2018 28 Feb 2017

(Finalised 28 February 2018) R R R

Turnover R 557 530 028 R 732 031 836 R 563 767 591

Inventory - BATSA R 174 501 808 - -

Inventory – Surplus inventory carried over to 2018 / 2017 pool

R 47 285 139 R 47 285 139 R 97 112 038

Total expected pool turnover R 779 316 975 R 779 316 975 R 660 879 629

Minus : Payments and costs R 735 787 029 R 779 316 975 R 660 879 629

- Advance payments and direct pool costs R 615 119 951 R 615 119 951 R 518 301 683

- Processing costs R 77 137 132 R 77 137 132 R 63 903 498

- Deferred payments settled before year-end R 43 529 946 R 87 059 892 R 78 674 448

Provision for additional deferred payments R 43 529 946 - -

2017 TOBACCO POOL 8

Tobacco receiving statistics: Flue Cured tobacco pool

Tobacco received in 2017 per region

Region Hectares kg Advance value R/kg

Loskop 1851 5 600 175 R 222 981 698 R 39.82

Lowveld 124 364 510 R 15 657 322 R 42.95

Waterberg 1 004 3 950 379 R 185 576 380 R 46.98

North West 231 705 086 R 28 790 545 R 40.83

Total 3 210 10 620 150 R 453 005 945 R 42.66



Loskop 2 025 5 728 798 R 194 152 079 R 33.89

Lowveld 143 401 282 R 14 930 613 R 37.21

Waterberg 1 237 4 257 514 R 171 084 270 R 40.18

North West 372 926 650 R 31 095 131 R 33.56

Total 3 777 11 314 244 R 411 262 093 R 36.35

31 Dec 2017

2017 Sun Cured Tobacco Pool kg R

Sales SCV (Sun Cured) 4 222 328

Recovery costs 1 596 954

Total income 5 819 282

less:

Advance payments 75 123 R 28.43 2 135 915

Deferred payments 961 162

Interest free loans to SCV producers 1 724 387

Processing fees 304 248

MASDT interest free loan 500 000

Direct pool cost 193 570

Total expenses 5 819 282

Net profit/(loss) -

The SCV growing project is a project between Limpopo Tobacco Processors (LTP), MASDT and British American Tobacco South Africa (BATSA) to assist small scale farmers to become commercial farmers.

All 2017 loans to Sun Cured producers are paid after the sales of the tobacco and receiving funds from debtors.

2017 TOBACCO POOL 9

LIMPOPO TOBACCO PROCESSORS (PTY)LTDDIRECTORS’ REPORTCONTINUED


2017 Flue Cured Pool – LTP price adjustment statement (as per agreement between TPD and LTP).

2017 Price adjustment statement2016 Price adjustment statement

31 Dec 2017 28 Feb 2018 28 Feb 2017


Turnover R 557 530 028 R 732 031 836 R 563 749 207

Payment from TPD R 18 120 238 R 18 120 238 R 16 450 484


Inventory – Surplus inventory carried over to 2018 pool

R 47 285 139 R 47 285 139 R 97 112 038

Total expected turnover R 797 437 213 R 797 437 213 R 677 311 729


- Cost of sales R 657 430 499 R 657 430 499 R 556 323 677


- Price adjustments settled before year-end R 38 308 380 R 76 616 760 R 68 000 000

Provision for additional price adjustments R 38 308 380 - -

The Directors are not aware of any matter or circumstance arising since the end of the financial year.

No additional shares were issued.

LTP Holdings (Pty) Ltd’s shareholding:

LTP Holdings (Pty) Ltd has an authorized share capital of 200 000 000 shares of non-par value.

Both AFGRI Operations (Pty) Ltd and SATPH hold 43 025 100 ordinary shares of non-par value in LTP Holdings (Pty) Ltd (43.25% each).

Tobacco Development Investment Holdings (RF) (Pty) Ltd (“TDIH”) holds 13 424 400 ordinary shares of non-par value (13.5%).

LTP Holdings (Pty) Ltd has issued 99 474 600 of their authorised shares of 200 000 000.

Limpopo Tobacco Processors (Pty) Ltd’s shareholding:

Limpopo Tobacco Processors (Pty) Ltd’s authorized ordinary shares are in total 100 000 000 ordinary shares of non-par value.

LTP Holdings (Pty) Ltd currently holds 18 000 000 shares (60%) of the issued 30 000 000 shares.

TDIH holds 12 000 000 (40%) of the issued shares in Limpopo Tobacco Processors (Pty) Ltd.

Limpopo Tobacco Processors (Pty) Ltd authorized 100 000 preferred shares with non-par value.

1 000 Preferred shares of Limpopo Tobacco Processors (Pty) Ltd at R86 034.38 each were issued to LTP Holdings (Pty) Ltd.

Currently Limpopo Tobacco Processors (Pty) Ltd’s black shareholding is 55.23%.

Events after the reporting period

Share capital


No dividends were declared to shareholders in LTP Holdings (Pty) Ltd.

LTP Holdings (Pty) Ltd is not a subsidiary of a holding company.

Mazars Gauteng will continue to be the auditors according to Section 90 of the Companies Act 71 of 2008.

The Directors have performed the required liquidity and solvency tests required by the Companies Act 71 of 2008.

Rustenburg27 March 2018

The Directors of both companies during the year and to the date of this report are as follows:

The Company Secretary and Chief Financial Officer is BJ de Wet Venter.

Mr. GJ Geel resigned on 24 November 2017 as Director. Ms. MD Shikwinya replaced Mr. GJ Geel as representative of AFGRI.

Represent Appointment date

RW Ottermann (Chairman)

SATPH 25/09/2008

MJ Prinsloo AFGRI 25/09/2008

NP Kok SATPH 19/06/2015

ZF van der Merwe

Independent Director

25/09/2008

MD Shikwinya AFGRI 20/11/2015

JJ Heshu TDIH 25/11/2016

C van StadenManaging

Director25/09/2008

The percentage of black shareholding is calculated as follows:

Since AFGRI Operations (Pty) Ltd currently has a 27.48% black shareholding according to B-BBEE certificate, it contributes 7.13% to LTP’s black shareholding (43.25% x 60% x 27.48%).

The 13.5% shareholding of TDIH in LTP Holdings (Pty) Ltd, contributes 8.10% to LTP’s black shareholding (13.5% x 60%).

TDIH’s direct shareholding in LTP is 40%.

Dividends

Holding company

Auditors

Liquidity and solvency

Directors

Company Secretary and Chief Financial Officer


LIMPOPO TOBACCO PROCESSORS (PTY)LTDRISK & ASSURANCE COMMITTEE REPORTTO THE BOARD OF LTP HOLDINGS (PTY) LTD

This report by the Risk and Assurance Committee (the RA Committee), as appointed by the Board of LTP Holdings (Pty) Ltd in respect of the year under review, is prepared in accordance with the recommendations of King IV and the requirements of the Companies Act (No 71 of 2008) and describes how the committee has discharged its statutory duties in terms of the Companies Act in respect of the financial year ended 31 December 2017.

The committee comprises of one non-executive director, Mr Johan Geel, who is appointed as Chairman, the Managing Director, Chief Financial Officer, Risk Manager, IT Manager and IT System Administrator. In terms of the Committee’s charter, at least two meetings should be held annually.

Representatives of WMW (internal auditors) and Mazars Gauteng (external auditors) attended both meetings. Mr Johan Geel has taken up the position of Financial Director of GWK. Mr Tinus Prinsloo is appointed by the Board to take over his functions from 24 November 2017.

Committee member

Number of

meetings held

Number of

meetings attended

Johan Geel (Chairman) 2 2

Christo van Staden 2 2

Banie Venter 2 2

Coenraad Loots 2 2

Ben Smit 2 2

Jan Gebhardt 2 2

COMMITTEE MEMBERS AND ATTENDANCE OF MEETINGS

Composition of the Committee (2017)

MJ PrinslooChairman of the Risk and Assurance

Committee

GJ Geel Former Chairman of the Risk and Assurance

Committee


The primary objective of the committee is to provide assurance to the Board of Directors on the total LTP Group of Companies’ risk, control and compliance framework, and each company’s financial statement responsibilities. The committee has the responsibility for ensuring the integrity of the financial reporting process, the risk management control process, internal reporting and control, management of strategic, financial and operational risks and the external audit process based on sound principles of accountability, transparency and responsibility. To coordinate the audits, risk management and assurance activities. The committee is satisfied that it has fulfilled all of its duties during the financial year under review, as further below.

Statutory duties In the conduct of its duties, the committee has performed the following statutory duties:

• ensured that the appointment of the external and internal auditors comply with the provisions of the Companies Act and any other legislation relating to the appointment of auditors ;

• determined the nature and extent of the internal auditor ‘s scope;

• determined the fees to be paid to both the internal and external auditors and their terms of engagement.

External audit The committee is satisfied that the external auditor, Mazars Gauteng, is independent of the Companies and is thereby able to conduct their audit functions without any influence from the Companies. Partners in Mazars Gauteng rotated during the previous year as per new legislation.

Internal financial control and accounting systems The committee is responsible for assessing the systems of internal financial controls and accounting systems of all the Companies. In this regard the committee has evaluated reports on the effectiveness of the systems of internal financial controls conducted by the internal auditor WMW, considered information provided by management and received feedback from the external auditors after the audit which took place. The committee is of the opinion that the systems of internal financial controls are still effective and that the internal auditors will continue to concentrate more on PAYE, VAT, tobacco export documentation, VAT on exports and specific internal financial controls.

Expertise and experience of Chief Financial Officer and finance function The committee has satisfied itself that the Company’s CFO has appropriate expertise, qualifications and experience to fulfill his role. The committee is further satisfied with the appropriateness of the expertise and the adequacy of resources of the Company’s finance function and its experience.

Financial statements and ongoing concern The committee has reviewed the financial statements of the Companies and is satisfied that they comply with International Financial Reporting Standards and the Companies Act, and that the accounting policies used are appropriate. Management confirms that orders received, financing from Land Bank and contracts with producers (with TPD) are in place and therefore the Operational Companies will all be ongoing concerns in the foreseeable future. Risk Management

A comprehensive risk evaluation of all the Companies’ risks was done. Action plans were drawn up and are monitored by the committee. Additional risks that emerged after the analysis conducted in September 2017, was brought to the attention of the board and the necessary action plans is set up. Internal audit

WMW executes the internal audit functions for the Companies. IT Steering Committee This committee is a sub-committee of the Risk and Assurance Committee and discusses IT policy, audits and service level agreements. Cybercrime increases worldwide and therefor penetration tests will again be conducted in 2018. The IT Steering Committee meetings take place during the regular Management Committee meetings between Limpopo Tobacco Processors (Pty) and Tobacco Producer Development (Pty) Ltd. Recommendation of the financial statements for approval by the Board The committee has reviewed and considered the financial statements of all the companies, and has recommended it for approval by the Board.

ROLE AND RESPONSIBILITIES

MJ Prinsloo27 March 2018


LIMPOPO TOBACCO PROCESSORS (PTY)LTDSOCIAL AND ETHICS COMMITTEE REPORT

The Social and Ethics Committee (the SE Committee) assists the Board in monitoring LTP Group of Companies’ performance as a good and responsible corporate citizen. This report by the SE Committee is prepared in accordance with the requirements of the Companies Act (No 71 of 2008) and describes how the committee has discharged its statutory duties in terms of the Companies Act in respect of the financial year ended 31 December 2017.

The committee comprises of one non-executive director, Mr Tinus Prinsloo, which is appointed as Chairman, the Managing Director, Chief Operational Officer, Risk Manager, Safety Officer, Executive Director – TPD, Relations Manager, Tobacco Manager (Green) - TPD and Chief Agronomist.

Mr Thinus Prinsloo is appointed Chairman of Risk and Assurance Committee, due to the resignation of Mr Johan Geel as director as from 24 November 2017. Ms MD Shikwinya is elected Chairman of the SE Committee. In terms of the committee’s charter, at least two meetings should be held annually.

The Chief Financial Officer, Banie Venter, attended the meeting as per invitation.

Due to the availability of committee members no formal second meeting was held, as required by the charter.

Committee member

Number of

meetings held

Number of

meetings attended

Tinus Prinsloo (Chairman) 1 1

Christo van Staden 1 1

MC Dippenaar 1 1

Coenraad Loots 1 1

Adel Smit 1 0

Zacharia Motsumi 1 1

Christel Willemse 1 1

Hennie Buys 1 1

Anton Scholtz 1 0

COMMITTEE MEMBERS AND ATTENDANCE OF MEETINGS

Composition of the Committee

MD Shikwinya27 March 2018

The SE Committee’s role and responsibilities are governed by a formal charter as approved by the Board. The charter is subject to an annual review by the Board.

The purpose of the SE Committee is to monitor LTP Group of Companies’ activities with regards to the following four pillars of STP (Sustainable Tobacco Programme):

• Environment• People• Crop• Facilities

Corporate governance is the foundation of these pillars and incorporates the management processes that must be put in place to successfully implement STP.

The SE Committee is also committed to focus on the guidelines of the King IV report regarding the role of the Social and Ethics committee.

The meeting that was held, focused on the results of the first STP audit that was conducted in 2017. The audit was conducted by an independent company called Ab Sustain. Audit results were discussed during this meeting. The audit was divided into two sections. The first section focused on the four pillars regarding agronomy. The second section focused on the four pillars at the processing facility. Observation of the results from the farm visits as well as the facility visit was discussed. The biggest areas of concern were highlighted. The Managing Director of LTP has called a STP planning meeting to establish a STP strategy.

The meetings also focused on the following:• Amendment of the charter;• Skuinsdrift pilot project – State of affairs;• STP Roadmap;• B-BBEE Roadmap - Focus on skills development;

and• EE plan - EE plan for LTP as well as TPD are

approved by the Board for the period ending 2020.

Minutes of the meetings are available on request.

ROLE AND RESPONSIBILITIES

ACTIVITIES OF THE COMMITTEE


MJ PrinslooFormer Chairman of the Social and Ethics Committee

MD ShikwinyaChairman of the Social and Ethics Committee


LIMPOPO TOBACCO PROCESSORS (PTY)LTDFINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2017

Statement of Financial Position as at 31 December 2017

Figures in Rand 2017 2016

Assets

Non-Current Assets

Property, plant and equipment 139,321,991 141,476,328

Investment property 4,075,000 4,075,000

143,396,991 145,551,328

Current Assets

Inventories 226,523,684 211,459,928

Trade and other receivables 370,142,638 17,304,251

Other financial assets 2,000,000 1,014,265

Cash and cash equivalents 13,096,302 142,774,236

611,762,624 372,552,680

Total Assets 755,159,615 518,104,008

Equity and Liabilities

Equity

Share capital 87,198,797 87,198,797

Reserves - 663,636

Retained income 10,197,595 3,559,446

97,396,392 91,421,879

Liabilities

Non-Current Liabilities

Loans from group companies 55,062,849 55,079,432

Finance lease liabilities 315,027 469,176

Deferred tax 24,641,048 25,313,083

80,018,924 80,861,691

Current Liabilities

Trade and other payables 51,485,936 44,185,954

Other financial liabilities 519,363,691 301,500,115

Finance lease liabilities 149,104 134,369

Current tax payable 3,095,109 -

Provisions 3,650,460 -

577,744,300 345,820,438

Total Liabilities 657,763,224 426,682,129

Total Equity and Liabilities 755,159,615 518,104,008


Statement of Profit or Loss and other Comprehensive Income


Revenue 692,911,583 715,303,662

Cost of sales (647,727,586) (677,050,112)

Gross Profit 45,183,997 38,253,550

Other income 22,066,984 20,280,064

Profit on sale of Assets 334 -

Operating expenses (37,087,557) (36,614,226)

Operating profit 30,163,758 21,919,388

Investment revenue 1,292,510 3,340,281

Finance costs (23,058,682) (18,391,059)

Profit before taxation 8,397,5876 6,868,610

Taxation (2,423,074) (5,723,126)

Profit(loss) for the year 5,974,512 1,145,484

Total comprehensive income (loss) for the year 5,974,512 1,145,484


LIMPOPO TOBACCO PROCESSORS (PTY)LTDFINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2017

Statement of Cash Flows


Cash flows from operating activities

Cash receipts from customers 340,073,196 681,685,755

Cash paid to suppliers and employees (663,143,375) (609,219,459)

Cash generated from operations (323,070,179) 72,466,296

Interest income 1,292,510 3,340,281

Finance cost (23,058,682) (18,391,059)

Net cash from operating activities (344,836,351) 57,415,518

Cash flows from investing activities

Purchase of property , plant and equipment (1,564,305) (3,106,035)

Sale of property , plant and equipment 878 -

Loans to group companies repaid (16,583) (3,484)

Loan repayments received 1,014,265 -

Loan advanced (2,000,000) -

Net cash from investing activities (2,565,745) (4,123,784)

Cash flows from financing activities

Loans received 1,070,666,219 691,940,413

Loans repaid (852,802,643) (632,146,256)

Finance lease payments (139,414) (117,338)

Net cash from financing activities 217,724,162 59,676,819

Total cash movement for the year (129,677,934) 112,968,553

Cash at beginning of the year 142,774,236 29,805,683

Total cash at end of the year 13,096,302 142,774,236


100% BLACK OWNED COMPANY

TOBACCO PRODUCER DEVELOPMENT (PTY)LTD


TOBACCO PRODUCER DEVELOPMENT (PTY)LTDDIRECTORS’ REPORT

The Company is engaged in obtaining Flue Cured tobacco from producers, where after the tobacco is processed and marketed by Limpopo Tobacco Processors (Pty) Ltd.

Furthermore, Tobacco Producer Development (Pty) Ltd (“TPD”) and Limpopo Tobacco Processors (Pty) Ltd (“LTP”) are committed to develop emerging producers up to the level of commercial producers, so that within the next decade, a substantial portion of the South African Flue Cured tobacco will be delivered by black producers

LTP Holdings (Pty) Ltd

This Company is the founder company of the Tobacco Producer Development Trust (“TPD Trust”).

After the successful transformation of LTP in 2015, the structure is as follows:

The Directors submit their report for the year ended 31 December 2017.

REVIEW OF ACTIVITIES ACTIVITIES OF THE OPERATING COMPANY & HOLDING COMPANY

LTP HOLDINGS (PTY) LTDREG NO: 2003/012696/07

LIMPOPO TOBACCO PROCESSORS (PTY) LTD

REG NO: 1998/020096/07

TOBACCO PRODUCER DEVELOPMENT (PTY) LTD

REG NO: 2015/441055/07


REG NO: IT003829/2015T

AFGRI OPERATIONS (PTY) LTDREG NO: 1995/005872/07

SOUTHERN AFRICAN TOBACCO PRODUCERS HOLDINGS LTDREG NO: 2004/012018/06

PREF

EREN

TIA

LSH

ARE

S

ORD

INA

RYSH

ARE

S

100%

40%

ORD

INA

RYSH

ARE

S

ORD

INA

RYSH

ARE

S

100%

13.5%43.25%43.25%

60%

100%

ORD

INA

RYSH

ARE

S

ORDINARYSHARES

ORDINARYSHARES

ORDINARYSHARES

TOBACCO DEVELOPMENT INVESTMENT HOLDINGS (RF)

(PTY) LTDREG NO: 2015/427853/07


The Tobacco Producer Development Trust

The Tobacco Producer Development Trust (“TPD Trust”) is the holding entity of Tobacco Development Investment Holdings (RF) (Pty) Ltd (“TDIH”) and Tobacco Producer Development (Pty) Ltd (“TPD”). The TPD Trust receives an ex-gratia amount from TPD to assist agronomy students / graduates or emerging farmers with bursaries and / or training.

Tobacco Producer Development (Pty) Ltd (“TPD”)

The Company is a 100% subsidiary of the Tobacco Producer Development Trust.

The Company’s main income source is from the purchasing of tobacco from both commercial and emerging producers. TPD facilitates since 2016 the tobacco pool for the South African Flue Cured tobacco producers. The tobacco pool is season driven, which commences in January/February of each year after the first tobacco has been delivered.

The pool is finalised as soon as all the tobacco has been sold and the debtors have been recovered, as well as all other transactions of that pool. A price adjustment according to the rules stated in the contracts between the two companies is then paid from Limpopo Tobacco Processors (Pty) Ltd (“LTP”) to Tobacco Producer Development (Pty) Ltd (“TPD”). The finalisation of the pool usually occurs by the end of February of the following year.

The Tobacco Producer Development Trust has received an ex-gratia amount from the tobacco pool through TPD of R212 403. The Trust will use the funds for bursaries and / or training of agricultural students / graduates or new emerging producers.

Emerging farmers: Flue Cured tobacco

TPD’s direct cost associated with the establishment of Flue Cured tobacco producers in Skuinsdrift amounts to R921 036.

R2 126 092 is spent in 2017 on stabilising the irrigation needs on the project.

Agronomy services: all producers

R 4 568 300 was spend on agronomy services. Most of the agronomist’s time were used in training farm workers and emerging farmers.

General

The pool results of consolidated FCV 2017 tobacco pool will be reflected in the Director’s report and the operating results will be reflected in the financial statement.

The pool will not be finalised, due to the reporting date of 31 December 2017.

The outstanding price adjustment from LTP will be reflected as a pool debtor and outstanding deferred payments will be reflected as a pool creditor on the annual financial statements of TPD. The costs to finalise the pool will also be reflected as pool creditors in either LTP’s or TPD’s annual financial statements.

SOCIAL RESPONSIBILITY


CONTINUED

2017 Flue Cured consolidated pool:


Statistics

Unit cost R/kg % R/kg %

Advance payments 42.66 36.35

Expected deferred payments 8.19 19.22% 6.95 19.20%

Processing costs 6.04 4.93

Total payment to producers R R/kg R R/kg

Advance payments 453 005 945 42.66 411 262 093 36.35

Deferred payments 87 059 892 8.19 78 674 448 6.95

Total payments 540 065 837 50.85 489 936 541 43.30

Tobacco received 2017 2016

Producers 10 620 150 kg 11 314 244 kg

External companies / surplus 2 144 470 kg 1 676 610 kg

Total thru-put 12 764 620 kg 12 990 854 kg

2017 POOL 2016 POOL(FINAL)

2017 Flue Cured Pool 31 Dec 2017 28 Feb 2018 28 Feb 2017


Turnover R 557 530 028 R 732 031 836 R 563 767 591


Inventory – Surplus inventory carried over to 2018 / 2017 pool

R 47 285 139 R 47 285 139 R 97 112 038

Total expected pool turnover R 779 316 975 R 779 316 975 R 660 879 629


- Advance payments and direct pool costs R 615 119 951 R 615 119 951 R 518 301 683


- Deferred payments settled before year-end R 43 529 946 R 87 059 892 R 78 674 448

Provision for additional deferred payments R 43 529 946 - -

TOBACCO PRODUCER DEVELOPMENT (PTY)LTDDIRECTORS’ REPORT


Tobacco receiving statistics: Flue Cured tobacco poolTobacco received in 2017 per region


Loskop 1851 5 600 175 R 222 981 698 R 39.82

Lowveld 124 364 510 R 15 657 322 R 42.95

Waterberg 1 004 3 950 379 R 185 576 380 R 46.98

North West 231 705 086 R 28 790 545 R 40.83

Total 3 210 10 620 150 R 453 005 945 R 42.66



Loskop 2 025 5 728 798 R 194 152 079 R 33.89

Lowveld 143 401 282 R 14 930 613 R 37.21

Waterberg 1 237 4 257 514 R 171 084 270 R 40.18

North West 372 926 650 R 31 095 131 R 33.56

Total 3 777 11 314 244 R 411 262 093 R 34.35

The Directors are not aware of any matter or circumstance arising since the end of the financial year.

No additional shares were issued.

LTP Holdings (Pty) Ltd’s shareholding:

LTP Holdings (Pty) Ltd has an authorized share capital of 200 000 000 shares of non-par value.

TDIH holds 13 424 400 (13.5%) and SATPH and AFGRI Operations (Pty) Ltd each 43 025 100 (43.25%) of the issued ordinary shares of non-par value in LTP Holdings (Pty) Ltd.

LTP Holdings (Pty) Ltd has issued 99 474 600 of their authorised shares of 200 000 000.

Tobacco Development Investment Holdings (RF) (Pty) Ltd.’s (“TDIH”) shareholding:

TDIH holds 13 424 400 (13.5%) of the issued ordinary shares of non-par value in LTP Holdings (Pty) Ltd.

TDIH holds 12 000 000 (40%) of the issued shares in Limpopo Tobacco Processors (Pty) Ltd.

Events after the reporting period

Share capital

No dividends were declared to the Tobacco Producer Development Trust or Tobacco Development Investments Holdings (RF) (Pty) Ltd.

The Tobacco Producer Development Trust is the holding entity of Tobacco Producers Development (Pty) Ltd and Tobacco Development Investment Holdings (RF) (Pty) Ltd.

Mazars Gauteng will continue in office with Section 90 of the Companies Act 71 of 2008.

The Directors have performed the required liquidity and solvency tests required by the Companies Act 71 of 2008.

Rustenburg27 March 2018

The Directors of both companies during the year and to the date of this report are as follows:

The Company Secretary and Chief Financial Officer is BJ de Wet Venter.

Represent Appointment date

ZP Motsumi (Executive Director)

TPD Trust 09/12/2015

JI Mashishi-Ntsime (Non-Executive Director)

TPD Trust 10/12/2015

Dividends

Holding entity

Auditors

Liquidity and solvency

Directors

Company Secretary and Chief Financial Officer


TOBACCO PRODUCER DEVELOPMENT (PTY)LTDFINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2017



Assets

Non-Current Assets

Intangible assets 10,000 10,000

Deferred tax 782,077 75,470

792,077 85,470

Current Assets

Trade and other receivables 39,735,963 34,638,183

Other financial assets - 836,423

Cash and cash equivalents 6,798,315 4,815,424

46,534,278 40,290,030

Total Assets 47,326,355 40,375,500


Equity

Share capital 10 10

Retained income 248,715 81,463

248,725 81,473

Liabilities

Current Liabilities

Trade and other payables 46,413,129 40,186,878

Current tax payable 664,501 107,149

47,077,630 40,294,027




Statement of Profit or Loss and other Comprehensive Income


Revenue 574,923 301 575,696,067

Cost of sales (548,389,082) (550,843,044)

Gross Profit 26,534,219 24,853,023

Other income 2,213,900 831,203

Operating expenses (28,515,337) (25,581,154)

Operating profit 232,782 103,072

Investment revenue 1,575 11,428

Finance costs (2,061) (1,358)

Profit before taxation 232,296 113,142

Taxation (65,044) (31,679)

Profit(loss) for the year 167,252 81,463

Total comprehensive income (loss) for the year 167,252 81,463


Statement of Cash Flows as at 31 Desember 2017


Cash generated from operations 1 361 253 5 651 767

Interest income 1 575 11 428

Finance cost (2 061) (1 358)

Taxpaid (214 299) -

Net cash from operating activities 1 146 468 5 661 837

Cash flows from investing activities

Purchase of other intangible assets - (10 000)

Loan repayment received 836423 -

Loan advanced - (836 423)

Net cash from investing activities 836 423 (846 423)

Cash flows from financing activities

Proceeds from share issue - 10

Net cash from financing activities - 10

Total cash movement for the year 1 982 891 4 815 424

Cash at beginning of the year 4 815 424 -

Total cash at end of the year 6 798 315 4 815 424

TOBACCO PRODUCER DEVELOPMENT (PTY)LTDFINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2017


GENERAL


GENERALAWARDING OF TROPHIES

Smaller than 30 haFrikkie du Plessis

Kameeldoring Familie Trust

North West

Smaller than 30 haCharel Jansen van Rensburg

Asarjah Boerdery

Waterberg

Larger than 30 ha Japie Erasmus

Farm Doornkop

Waterberg

Smaller than 30 ha Auvinus Martens

AE Martens

Loskop

Charel Jansen van RensburgFarm Groenfontein

Overall winner

Larger than 30 ha Cloet Lubcker

Saam-Sukkel Boerdery

Loskop

Peter KokNyawa Boerdery

Agricultural Trophy

Smaller than 30 haLouis Pieterse

Nelsrif Boerdery

Lowveld


GENERALSTATISTICS

kg R/kg

2012 13,459,765 R24,68

Lowveld 1,047,474 R26,42

Loskop 6,164,435 R22,40

North West 1,346,722 R23,56

Waterberg 4,901,134 R27,49

YEAR THRU-PUT (kg) COST (R) COST/kg

2012 14,695,325 R60,608,796 R4,12

2013 13,705,218 R62,149,803 R4,53

2014 12,206,640 R53,359,016 R4,37

2015 12,279,259 R59,887,233 R4,88

2016 12,990,854 R64,016,640 R4,93

2017 12,764,620 R77,137,132 R6,04

kg R/kg

2014 10,401,490 R31,03

Lowveld 625,999 R32,05

Loskop 4,537,912 R29,80

North West 949,641 R28,18

Waterberg 4,287,938 R32,82

kg R/kg

2016 11,314,244 R36,35

Lowveld 401,282 R37,21

Loskop 5,728,798 R33,89


Waterberg 4,257,514 R40,18

kg R/kg

2013 12,342,168 R28,97

Lowveld 816,029 R31,34

Loskop 5,857,050 R25,46


Waterberg 4,780,921 R33,06

kg R/kg

2015 10,952,058 R34,93

Lowveld 440,429 R36,91

Loskop 5,615,639 R33,20


Waterberg 4,233,399 R37,27

kg R/kg

2017 10,620,150 R42,66

Lowveld 364,510 R42,95

Loskop 5,600,175 R46,98


Waterberg 3,950,379 R42,66

TOBACCO PURCHASING: PRODUCERS

UNIT COSTS


YEAR TOTAL VALUE (R)

AVERAGE INCOME/ha (R)

2012 R416,153,524 R98,943

2013 R432,040,612 R106,914

2014 R397,122,381 R103,850

2015 R461,845,267 R120,712

2016 R489,936,541 R129,716

2017 R540,065,837 R168,245

YEAR R/$ RATE $ GREEN PRICE/kg

2012 R8,17 $3,78

2013 R9,61 $3,64

2014 R10,85 $3,52

2015 R12,77 $3,39

2016 R14,78 $2,93

2017 R13,37 $3,80

YEAR R/$ RATE $ GREEN PRICE/kg

2012 R8,17 $4,54

2013 R9,61 $4,50

2014 R10,85 $4,40

2015 R12,77 $4,08

2016 R14,78 $3,81

2017 R13,37 $4,66

YEAR % OF CROP AVERAGE PRICE/kg

2012 75,14% R37,09

2013 71,26% R43,21

2014 69,35% R47,78

2015 69,98% R52,15

2016 63,47% R56,24

2017 70,67% R62,24

YEAR TOTAL VALUE AVERAGE PRICE/kg

2012 R416,153,524 R30,92

2013 R432,040,612 R35,01

2014 R397,122,381 R38,18

2015 R461,845,267 R42,17

2016 R489,936,541 R43,30

2017 R540,065,837 R50,85

YEAR VALUE SALES/kg AVERAGE PRICE/kg

2012 R542,411,642 14,695,325 R36,91

2013 R564,177,549 13,705,218 R41,17

2014 R611,322,385 12,800,640 R47,76

2015 R602,905,706 12,279,259 R49,10

2016 R660,879,629 12,990,854 R50,87

2017 R779,316,975 12,764,620 R61,05

AVERANGE INCOME PER HECTARE

TOTAL VALUE RECEIVED BY PRODUCER STANDARD GRADES DELIVERED

POOL TURNOVER

AVERAGE R/US$ RATE (TOTAL CROP) AVERAGE R/US$ RATE (STD GRADES)


GENERALSTATISTICS

2012 2013 2014 2015 2016 2017

Total crop (kg) 13 459 765 12 342 168 10 401 490 10 952 058 11 314 244 10 620 150

Hectares planted 4 206 4 041 3 824 3 826 3 777 3 210

Average yield (kg/ha) 3 200 3 054 2 720 2 863 2 996 3 308

Advances paid / kg R 24,68 R 28,97 R 31,03 R 34,93 R 36,35 R 42,66

Total value received : Producers

R 416 153 524 R 432 040 612 R 397 122 381 R 461 845 267 R 489 936 541 R 540 065 837

Total Producer price / kg R 30,92 R 35,01 R 38,18 R 42,17 R 43,30 R 50,85

Deferred payment % 25,26% 20,84% 23,02% 20,73% 19,20% 19,22%

Average income / ha ****

R 98 943 R 106 914 R 103 850 R 120 712 R 129 716 R 168 245

Total thru-put(kg) (FCV) 14 695 325 13 705 218 12 206 640 12 279 259 12 990 854 12 764 620

Processing fee R 60 608 796 R 62 149 803 R 53 359 016 R 59 887 233 R 64 016 640 R 77 137 132

Unit costs / kg R 4,12 R 4,53 R 4,37 R 4,88 R 4,93 R 6,04

Surplus/ tobacco purchase and cost

R 65 649 323 R 69 535 104 R 110 071 541 R 81 173 206 R 93 122 043 R 142 918 020

Total pool turnover R 542 411 643 R 564 177 549 R 611 322 385 R 602 905 706 R 660 879 629 R 779 316 975

SUMMARY

CONTINUED

**** hail damage claims excluded


FINANCIAL POSITION OF SHAREHOLDERS AND RELATED

COMPANIES

1st row: ZP Motsumi, MD Shikwinya, JJ Heshu

2nd row: JI Mashishi-Ntsime, GJ Geel, LP Marais, C Van Staden

3rd row: JH Buys, MC Dippenaar, BJ de Wet Venter, J Kloppers, C Willemse

Back row: A Scholtz, MJ Prinsloo, RW Ottermann, NP Kok, ZF Van Der Merwe


GROUP COMPANY

Figures in Rand 2017 2016 2017 2016

Assets

Non-Current Assets

Property, plant and equipment 139,321,991 141,476,328 - -

Investment property 4,075,000 4,075,000 - -

Investments in subsidiaries - - 86,040,922 86,040,922

Loans to group companies - 564 55,062,849 55,079,996

Deferred tax - - 1,512 -

143,396,991 145,551,892 141,105,283 141,120,918

Current Assets

Inventories 226,523,684 211,459,928 - -

Trade and other receivables 370,142,638 17,304,251 - -

Other financial assets 2,000,000 1,014,265 - -

Current tax receivable 3,347 - 3,347 -

Cash and cash equivalents 13,096,302 142,774,236 - -

611,765,971 372,552,680 3,347 -

Total Assets 755,162,962 518,104,572 141,108,630 141,120,918


Equity

Equity Attributable to Equity Holders of Parent

Share capital 1,194 1,194 1,194 1,194

Reserves - 12,758,606 - -

Retained income 149,597,51 133,251,885 141,102,035 141,099,724

149,598,705 146,011,685 141,103,229 141,100,918

Non-controlling interest 2,859,998 470,194 - -

152,458,703 146,481,879 141,103,229 141,100,918

Liabilities


Loans from group companies - 20,000 - 20,000

Finance lease liabilities 315,027 469,176 - -

Deferred tax 24,639,536 25,313,083 - -

24,954,56 25,802,259 - 20,000

Current Liabilities

Trade and other payables 51,491,332 44,185,950 5,401 -

Other financial liabilities 519,363,691 301,500,115 - -

Finance lease liabilities 149,104 134,369 - -

Current tax payable 3,095,109 - - -

Provisions 3,650,460 - - -

577,749,696 345,820,434 5,401 -

Total Liabilities 602,704,259 371,622,693 5,401 20,000

Total Equity and Liabilities 755,162,962 518,104,572 141,108,630 141,120,918

FINANCIAL POSITION OFSHAREHOLDERS AND RELATED COMPANIESLTP HOLDINGS PROPRIETARY LIMITED AND SUBSIDIARY






Assets

Non-Current Assets

Investments in subsidiaries 310 310

Other financial assets - 20,000

310 20,310

Current Assets

Cash and cash equivalents 433,974 229,556

Total Assets 434,284 249,866


Equity

Accumulated surplus 5,044 10,969

Liabilities


Loans from group companies - 300

Current Liabilities

Trade and other payables 421,928 226,285

Other financial liabilities - 5,000

Current tax payable 7,312 7,312

429,240 238,597

Total Liabilities 429,240 238,897

Total Equity and Liabilities 434,284 249,866


FINANCIAL POSITION OFSHAREHOLDERS AND RELATED COMPANIESTOBACCO DEVELOPMENT INVESTMENT HOLDINGS (RF) PROPRIETARY LIMITED



Assets

Non-Current Assets

Investments in subsidiaries 3,441,635 567,583

Loans to group companies - 300

3,441,635 567.883


Equity

Share capital 300 300

Retained income 2,655,989 424,130

2,656,289 424,430

Liabilities


Loans from group companies - 5,134

Deferred tax 765,577 123,301

765,577 128,435

Current Liabilities

Trade and other payables 5,400 -

Loans from group companies 13,411 15,018

Current tax Payable 958 -

19,769 15,018

Total Liabilities 785,346 143,453

Total Equity and Liabilities 3,441,635 576,883


SOUTHERN AFRICAN TOBACCO PRODUCERS HOLDINGS LIMITED



Assets

Non-Current Assets

Investments in associates 64,701,437 63,150,052

Current Assets

Loans to group companies - 1,601

Total Assets 64,701,437 63,151,653


Equity

Share capital 2,200 2,000

Retained income 50,183,202 49,003,748

50,185,402 49,005,748

Liabilities


Deferred tax 14,491,477 14,145,475

15,572,480 14,972,882

Current Liabilities

Trade and other payables 5,400 -

Loans from group companies 19,158 430

24,558 430




MJ PrinslooDirector; Chairman of the Risk and Assurance Committe and

Remuneration Committee

JJ HeshuDirector

NP Kok Director

C van StadenManaging Director

GJ Geel Director

MD ShikwinyaDirector; Chairman of the Social

and Ethics Committee

RW Ottermann Chairman

ZF van der MerweDirector

ZP MotsumiHuman Resources Manager

MC DippenaarChief Operational Officer

BJ de Wet VenterChief Financial OfficerCompany Secretary

DIRECTORS ANDMANAGEMENT


JI Mashishi-NtsimeNon-Executive Director

BJ de Wet VenterChief Financial OfficerCompany Secretary

ZP MotsumiTrustee

JI Mashishi-NtsimeTrustee

Christel WillemseTobacco Admin Manager

(Green)

ZP MotsumiExecutive Director

JH BuysRelationship Manager

A ScholtzHead: Agronomy

JJ HeshuTrustee; Chairman

BJ de Wet VenterTrustee

JH BuysTrust Administrator


DIRECTORS ANDMANAGEMENT

NP Kok Director

RW Ottermann Chairman

J KloppersDirector

LP MaraisDirector

BJ de Wet VenterChief Executive Officer;

Company Secretary


ADMINISTRATIVE INFORMATION

Address Limpopo Tobacco Processors (Pty) Ltd 67 Molen Street Po Box 69Rustenburg 0300

Telephone 014 596 5090

Facsimile 014 596 6419

External Auditors Mazars Gauteng (Attention: Mr Gerhard de Beer)Erasmus Forum A 434 Rigel Avenue SouthErasmusrand Pretoria 0181Tel: 012 347 3820

Internal Auditors WMW (Attention: Mr Jacques Malan)144 Kerk Street Rustenburg0299

Bankers ABSA Rustenburg Standard Bank Rustenburg

Financiers Land Bank (Attention: Mr Theuns Coetzee)Blok D, Eco Glades Office Park 420 Witch Hazel Avenue Eco Park Centurion Tel: 012 686 0500

Email Address [email protected]

Website Address www.ltp.co.za


2017 TOBACCO POOL ANNUAL REPORT - LTP · Deon Stoltz Snr Valuator Vaalwater (LPD) 073 376 2838...

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Transcript of 2017 TOBACCO POOL ANNUAL REPORT - LTP · Deon Stoltz Snr Valuator Vaalwater (LPD) 073 376 2838...