Interfront 2025 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2025 160 INTERFRONT ANNUAL REPORT 2025 Notes to the Financial Statements 24 Risk management (continued) Foreign exchange risk The entity provides services to one international customer and is exposed to foreign exchange risk arising from currency exposures, primarily with respect to the Euro. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities. The entity does not currently hedge foreign exchange fluctuations. Foreign currency exposure at the statement of financial position date Current assets Receivables from exchange transactions (amount in EURO) – 330 000 Receivables from exchange transactions (amount in USD) 1 494 – Liabilities Payables from exchange transactions (amount in USD) – 522 Exchange rates used for the conversion of foreign items were: EURO – 20.34 USD 18.34 18.85 25 Going concern The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. A major portion of revenue is currently attributable to a single customer, the shareholder. This is expected to continue in the near future. 26 Reconciliation between budget and statement of financial performance SARS as the principal of its wholly owned subsidiary, incorporates Interfront in its parliamentary and ultimate statutory accountability processes. Interfront is included inter alia in the SARS strategic plan, budget, monthly and annual reporting, as well as the consolidated annual financial statements. Interfront is governed by its Board under scrutiny of SARS. Interfront is thus excluded from the detailed reporting requirements based on paragraph 3 GRAP 24.