Department of Land Affairs Presentation to the Portfolio Committee on the Deregistration of Bala Farms (Pty) Ltd 5 April 2005

CONTENT Progress on: The disposal of remaining properties since the previous presentation to this Committee on 9 Nov 2004 Deregistration process

PROPERTIES REMAINING 4 Farming units consisting of 7 farm portions had to be transferred to the identified beneficiaries

PROPERTIES REMAINING Portions 41,64,83 of farm Grootfontein 115 JO Portions 22 of farm Blaauwbank 119 JO & Remainder of farm Blaauwbank 127 JO Transferred to the Dept to complete the disposal process, as this was delaying the deregistration

PROPERTIES REMAINING Portion 2 of farm Logaga 124 KP Portion 14 of farm De Putten 56 JO Disposed of Transferred free of charge to beneficiary community

DEREGISTRATION PROCESS All assets and liabilities had to be liquidated or ceded to the Department A certificate of Compliance has to be issued by SARS Relevant Resolutions had to be taken by the Board Accounting, Auditing & Legal matters

DEREGISTRATION PROCESS 1. All assets and liabilities had to be liquidated or ceded to the Department All debts were settled including an amount of R1 584 108 owed to the North West Province (Loan was originally provided by Agricor)

DEREGISTRATION PROCESS The last payments by the company were made on 9 March 2005 A cession of all existing claims in favour of or against the Company had to be issued as a contingent, although Company is unaware of such claims

DEREGISTRATION PROCESS All outstanding lease rentals were collected & pro rata payments for remaining periods of the leases were paid over to beneficiaries

DEREGISTRATION PROCESS A Certificate of Compliance had to be issued by SARS - A dispute with SARS regarding the money owed to or by the company took longer to resolve than anticipated.

DEREGISTRATION PROCESS Nevertheless, this was resolved in March 2005 after excellent co-operation with SARS staff and in depth analyses of all matters relating to VAT and Income Tax.

DEREGISTRATION PROCESS The final results have been incorporated into the financial statements of the company for the 2004 – 2005 financial year. The final certificate will be issued to the Registrar of Companies after the 2005 audit has been completed (mid April)

DEREGISTRATION PROCESS SARS was requested to cancel the Company’s registration for PAYE, SDL & VAT

DEREGISTRATION PROCESS 3. Relevant resolutions taken by the Board: - Deregistration of the Company - Transfer of shareholding from Chairperson of Company to the Dept - Payment of the pre-deregistration dividend of R15,3m declared & paid to the Department on 23 March 2005 - Application of deregistration sent the Registrar on 30 March 2005

DEREGISTRATION PROCESS 4. Accounting & Auditing matters: - All bank accounts have been closed subsequent to the payment of the pre-deregistration dividend - Financial Statements were compiled in March 2005 - The Auditor-General has commenced with the final audit of financial statements

DEREGISTRATION PROCESS 4. Accounting & Auditing matters: - Once the audit is complete, the statements will be lodged with SARS - The Register of Companies will then be in a position to deregister the Company because the Company will hold no further liabilities for Income Tax, VAT, PAYE or SDL

IN CONCLUSION: The Company has ceased its operations and the final deregistration is now in the hands of the Auditor-General, SARS & the Registrar of Companies

THANK YOU

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