NCERA FARMS (PTY) LTD ANNUAL REPORT: 2006/07 PRESENTATION TO THE PORTFOLIO COMMITTEE ON AGRICULTURE AND LAND AFFAIRS

NCERA FARMS (PTY) ANNUAL REPORT: 2006/07 1.Members of the Board T Marais S Malatji M Msizi J B Venter Me N L Ngubelanga Spokesperson of the settled farmers, Mr L Matinise, ex officio member of the Board. 2.Background -Creation of the company -Why with the DoA -Schedule 3B public entity -Creation of a service centre

NCERA FARMS (PTY) ANNUAL REPORT: 2006/07 (CONTINUED) 3.Progress made during 2006/07: -administrative building -workshop -security fence -water supply Total cost at end March 2007: R1,827 million R earmarked for finalisation 4.Services available to settled farmers and neighbouring communities: - Agricultural extension and advisory services - Land preparation, layout and contract ploughing - Training and advice on fresh produce production and marketing - Preparation of business plans and financial record keeping - Cost effective repairs and maintenance of machinery and equipment - Postal services - Legal services - Animal husbandry - Animal improvement schemes

ACTUAL SPENDING R’000 Budget allocation Transfer from the Department2 177 Plus: Own revenue 904 Total amount available3 081 Less: Actual Expenditure2 677* Surplus 404 * As follows: Personnel expenditure 330 (11,9%) Administrative expenditure 405 (14,6%) Management fees1 126 (40,5%) Veterinary and medicine cost 34 ( 1,2%) Fodder and licks 526 (18,9%) Maintenance 19 ( 0,7%) Transport 70 ( 2,5%) Consumables 12 ( 0,4%) Water and electricity 69 ( 2,5%) Security services 188 ( 6,8%)

EXTERNAL AUDIT REPORT -Unqualified report -No emphasis of matter AUDIT COMMITTEE REPORT -As follows: The financial system is in place, adequate and operational; revenue and expenditure are properly accounted for; wages are paid according to the prescribed scales; the asset register is up to date; and all equipment is properly accounted for.