Page 353 - SAMRC AnnualReport 2025-26

F I NAN C IAL I N F O R MA T I O N

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
(CONTINUED)

42. 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.
The South African Government recognises Afrigen as the only fully integrated, Good Manufacturing Practice
(GMP)–accredited, end-to-end mRNA vaccine research, development, and manufacturing facility in Africa, and
one of the very few such facilities globally located in the Global South. In addition, Afrigen has established the
first human and veterinary vaccine adjuvant formulation laboratory in Africa, as part of its One Health strategy.
At 31 March 2026 SAMRC recognised a donation of R20,000,000 to Afrigen Biologics (Pty) Ltd , the National
Department of Health supports the funding to Afrigen and may apply to Treasury to identify and transfer the
funds to SAMRC.

43. 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
2026 2025
R R
44. 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 8,247,296 13,248,404

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.

45. BBBEE Performance

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

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