Page 299 - SAMRC Annual Report 2023-24

FINANCIAL INFORMATION

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
NOTES TO THE ANNUAL FINANCIAL STATEMENTS

(CONTINUED)

43. Contingencies (continued)

Contingent assets
In October 2017 and November 2017 the South African Revenue Service (SARS) re-assessed the September 2016 vat
period. Output vat amounting to R2,824,561 was disallowed and interest and penalties were levied amounting to R370,726
and R294,150 respectively. The amount of R3,492,222 was deducted from a refund due to SAMRC. SAMRC has lodged
a dispute with SARS for the disallowed output vat and the interest and penalties. The output vat is valid and has been
claimed in the 2021/2022 period. SAMRC anticipates to recover the interest and penalties amounting R 664,876 from SARS.

44. Going concern
The annual 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.

31 MARCH 31 MARCH
2024 2023
R R
45. Statutory receivables

The entity had the following statutory receivables where the Framework for the Preparation
and Presentation of Financial Statements have been applied:
Vat receivable 25,439,861 16,208,647

Transaction(s) arising from statute
Value Added Tax Act 89 of 1991.

Determination of transaction amount
The net amount of VAT recoverable from SARS is reflected in the Statement of Financial Position as Vat Receivable.

Interest or other charges levied/charged
The Value Added Tax Act determines the rates and interest is charged.

Basis used to assess and test whether a statutory receivable is impaired
No impairment, the balance is expected to be fully recoverable.

46. B-BBEE Performance

Information on compliance with the B-BBEE Act is included in the annual report under the section titled B-BBEE Compliance
Performance Information.

47. Impairment of assets

Impairments

Property, plant and equipment 1,235,223 (1,251,843)
Impairment of (Reversal of previously impaired) property, plant, and equipment were processed
during the period under review. Impairment of property, plant and equipment was identified
at the year-end by management. Internal indicators such as the research sites/laboratories not
being active were key factors in deciding to impair the property, plant and equipment.

SAMRC ANNUAL REPOR T 2023-24 297