Interfront Annual Report 2022

PART E: FINANCIAL INFORMATION 71 2. REPORT BY THE BOARD OF DIRECTORS The Board submits its report for the year ended 31 March 2022. 2.1 Incorporation The entity was incorporated on 20 April 2009 and obtained its certificate to commence business on the same day. 2.2 Review of Activities The entity is primarily engaged to hold, invest in, and develop customs and border management software solutions for use by border control and revenue agencies around the globe. The operating results and state of affairs of the entity are fully set out in the attached Annual Financial Statements and in our opinion, do not require any further comment. The net deficit of the entity was R6 383 966 (2021 deficit: R8 769 728) and is in line with the newly adopted cash break-even finance model. 2.3 Going Concern The Annual Financial Statements have been prepared based on 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. As of 31 March 2022, the entity had an accumulated surplus of R60 728 352, while the total assets exceed its liabilities by the same. 2.4 Financial Statements The preparation and fair presentation of Interfront’s Annual Financial Statements are the responsibility of the Directors. In the opinion of the Directors, the Annual Financial Statements fairly present the financial position of Interfront as of 31 March 2022 and the results of its operations and cash flow information for the year then ended. 2.5 Subsequent Events The Board is not aware of any matter or circumstance arising since the end of the financial year that has materially impacted the state of affairs as at year-end. 2.6 Accounting Policies The Annual Financial Statements are prepared in accordance with the effective standards of GRAP, as issued by the Accounting Standards Board and prescribed by the framework developed by National Treasury. More detail on the accounting policies can be found on page 86 of the Annual Financial Statements. 2.7 Share Capital There were no changes in the authorised or issued share capital of the entity during the year under review. Interfront was capitalised by way of an interest-free Shareholder’s loan. The loan was fully repaid during the previous financial year. 2.8 Distributions to Owners No dividends were declared or paid during the year under review. 2.9 Board Details of the Board members can be found under Part C: Governance . 2.10 Secretary The Company Secretary for the term was Ms Madelein Pepperell. 2.11 Governance General The Board is committed to business integrity, transparency and professionalism in all its activities. As part of this commitment, the Board supports the highest standards of corporate governance and the ongoing development of best practices.