NTI Group Annual Report - 35446€¦ · |03 NTI Board of Directors NORTHWEST TRANSPORT INVESTMENTS...
76
Content Our Report Our Report Our Company Our Company Our Financial Position Our Financial Position Directors' Responsibilities and Approval Independent Auditors' Report Chairman's Report Chief Executive Officer's Report 2 4-7 9 10-15 Performance Information Corporate Governance Statement Audit Committee Report 16-33 34-37 38-39 Directors' Report Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Equity 40-42 43 44 45-48 Statement of Cash Flows Accounting Policies Notes to the Group Annual Financial Statements 49 50-57 58-74 NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30) Group Annual Financial Statement for the Year ended 31 March 2015 ANNUAL REPORT 2014/15 |
Transcript of NTI Group Annual Report - 35446€¦ · |03 NTI Board of Directors NORTHWEST TRANSPORT INVESTMENTS...
Content
Our Report
Our Report
OurCompany
OurCompany
OurFinancial
Position
OurFinancial
Position
Directors' Responsibilities and Approval
Independent Auditors' Report
Chairman's Report
Chief Executive Officer's Report
2
4-7
9
10-15
Performance Information
Corporate GovernanceStatement
Audit Committee Report
16-33
34-37
38-39
Directors' Report
Statement of FinancialPosition
Statement of Comprehensive Income
Statement of Changesin Equity
40-42
43
44
45-48
Statement of CashFlows
Accounting Policies
Notes to the GroupAnnual FinancialStatements
49
50-57
58-74
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15 |
02|
Chairperson’s Report
The warm and welcome by the Management of
Northwest Transport Investments (SOC) Limited (NTI)
and Staff made our work easy and very interesting. Our
mandate was to diagnose the challenges of the NTI
group and offer solutions by implementing the
turnaround strategy. We made a call to everyone to
have all hands on deck and staff and management did
exactly as we have proposed.
No company can succeed without its employees and for
that we are grateful. The filling of key strategic positions
remain significant on our part and it has to be resolved.
Transportation remain in the agenda because of the
inequality as a result of our past. Training must be on
the top of our agenda if we want to accomplish our vision
and mission.
The purchase of new Buses is non-negotiable for we
own our existence to the satisfaction of our passengers.
The future is in our hands together we can deliver a safe
transport system which is critical to the economy.
The establishment of a new office in Mahikeng and a
footprint in the North West Province is well underway
and we dare not fail.
The 2014/15 financial year was a difficult for the entire
bus industry especially those operating in the Gauteng
Province due to the method of subsidization by means
of the Division of Revenue Act (DoRA), the prescribed
annual increase has been lower than the inflation rate
since date of inception. Several meetings were held
with the relevant department and as at the end of the
year talks were continuing with Honourable MEC Vadi.
The NTI Board of Directors and employees would like to
express the gratitude to Honourable MEC Gaoage
Oageng Molapisi and the Head of the Department
(HOD) Mr Matlhakoleng for the support throughout the
year. I must say I am proud that our MEC experienced
one of our oldest buses first-hand from Jubilee Mall bus
rank to Pretoria East.
We are looking forward to a brighter 2015/16 financial
year together.
______________T GwabeniActing Chairman
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
03|
NTI Board of Directors
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
04|
Chief Executive Officer’s Report
INTRODUCTION
Northwest Transport Investments (SOC) Limited (NTI)
renders a passenger transport service mainly in the Gauteng
area, parts of Mpumalanga and Bokone-Bophirima provinces
through tenders signed with the Gauteng Provincial
Department of Roads & Transport. These tenders were
signed in 1997 and 1998 as interim contracts for five (5) years
in preparation for transformation of the public passenger
transport. These interim contracts have since expired and
renewed annual until 01 April 2015 when these were renewed
for three (3) years, up to 31 March 2018.
The Land Transport Act of 2009; the main intension of which
was to devolve passenger transport to provinces and
eventually for municipalities to take control. The process did
not materialise in all provinces as envisaged, especially in the
Gauteng Province. The transporters are faced with a situation
where interim contracts are renewed annually while the
province is grappling with the Integrated Transport Public
Networks (ITPN's) which are a precursor to 12-year
negotiated contracts with existing operators. Payment for
these services are made monthly from funds appropriated
through the Division of Revenue Act (DoRA). The downside of
the DoRA funding includes among others, limitation in annual
increases and failure to make provision for annual passenger
growth.
The results of the payment method adopted by the provincial
Department are lack of funds to recapitalize leading to
deteriorating fleet age. Another disadvantage is that in
comparison with the old method of payment, there is a shortfall
in the amount which the company would have earned in
comparison with the passenger-based method.
The company further has properties which are rented out to
third parties and a few which are utilised by the company. The
main building – Durabuild Bus Manufacturing factory remains
vacant although several enquiries were made with regards to
renting the building.
The evaluation of performance against the strategic goals as
per the annual performance plan for 2014/15 in section 2 of
this report indicates that the NTI Group did not achieve most of
the strategic objectives targeted for the year.
The financial performance for the 2014/15 financial year is
positive mainly due to financial year assistance provided by
both Gauteng Department of Roads & Transport and Bokone-
Bophima Department of Community Safety & Transport
Management by contributing ad hoc subsidy amounting to
R15.6 million and R30 million respectively.
The NTI Group made profit of R 12,5 million taking this ad hoc
subsidy into account. The impact of the two weeks of
resistance to fare increase by passenger in the Babelegi
operational area had a negative effect on results. The main
cost drivers of this business remain personnel-related cost,
diesel and maintenance spares. Maintenance spares
expenses were driven high by the age of the bus fleet. During
the 2014/15 total expenses were cushioned by the decrease in
the increase of fuel and lubricants. Revenue was adversely
affected by the increase in DoRA (subsidy) which increase
annual by a percentage far below inflation and more so
increase in wages.
The Board of Directors and executive management
underwent several changes, with the Executive Chairman
resigning in October 2014. The Board remained with three
members and the shareholder appointed four additional non-
executive directors 01 August 2014. The Board was thus
strengthened and three committees could thus be formed in
compliance with good corporate governance.
In addition to the existing two (2) vacancies at executive level -
Chief Executive Officer and Senior Human Resources
Manager, two senior managers resigned during the year under
review.
OPERATIONAL ISSUES
Division of Revenue Act (DoRA): The introduction of DoRA
has resulted in an overall decrease in the profitability of NTI
from the 2009 financial year up to this day. At the introduction
in 2009 the subsidy allocation for NTI was reduced by more
than 5% as compared to the allocation for the 2008 financial
year, which resulted in a loss of subsidy revenue of 16% for the
2009 Financial Year.
In subsequent years, Gauteng Provincial Government –
Department Public Works, Roads & Transport ignored the
escalations formula and capped the increase in DoRA
allocation to percentage increases far lower than the inflation
rate. The Department further ignored increase in the number
of routes due to passenger growth. Bus operators are
expected to implement additional services at own cost.
SABOA is still actively involved in actions to address the
shortfall in revenue with Government. Several meetings were
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
and viability of the intended TRT lines. NWS's affected routes
will eventually determine the company's share in the TRT
Operating Company. The impact of the TRT on NWS will to a
large extend depend on the feeder services that is still at a
design stage.
Phase 1 of the TRT – Areyeng (Hatfield – Pretoria CBD), has
commenced. This phase does not have an impact on NWS
operations.
All potentially affected operators were invited to register the
routes on which they may be affected. The level to which the
trips or routes will be affected will then be determined through
observations and censuses and the operators will engage in
negotiations for compensation.
The recent developments regarding the conclusion of
negotiated contracts and the rationalisation of the existing
scheduled services necessitates the finalisation of the TRT
routes and feeder services.
In the initial design of the TRT routes, the end destination of the
final stage would have been Kopanong Station in
Soshanguve. With publication of a revised design of the TRT
routes it was revealed that the TRT system will have feeder
routes/trips from Kopanong Station in Soshanguve to the
Mabopane Station from where a large number of Batswana
Gare's shifts operate. This will assist in the integration and
rationalisation of the Batswana Gare services.
Fleet Management System: A detailed policy to ensure that
the company derives full value from this investment is
currently being developed. A Service Level Agreement has
been concluded with the supplier to ensure that the company
benefits from the system.
STRATEGIC OVERVIEW
In the Strategic Planning Session for the year ending 31 March
2015, the strategic goals of the company where reviewed and
finally reduced from four (4) to three (3) and the weakness with
regards to developing “smart” and measuring objectives was
addressed through training provided by Technical Team
appointed by Provincial Treasury.
• To improve and expand transport services to self-sustaining
by 2019.
• To increase revenue through diversified investments in
transport related ventures.
held with the National and Provincial Departments of Roads
and Transport, Department of Finance, Ministers of Transport,
Commuter Organizations and organized labour where the
serious impact of the financial limitations on the commuter
transport industry was highlighted.
During March 2015 the Gauteng Department of Roads and
Transport announced that additional funds became available
and that an additional amount was allocated to all bus
operators. NWS and ABS was allocated an additional amount
of R15.6 million that was paid during March 2015.
Bus Replacement Programme: The Company has placed
an advert in the media to invite interested bidder to come up
with proposal to supply and fund 540 buses. The current fleet
has age is average of 17 years and are very costly to maintain.
Efforts to obtain funding from the shareholder – North West
Province did not succeed. The closing date for the bid was 27
March 2015.
Interim Contract: During March 2015 a meeting was held
where all the Gauteng bus operators, the MEC for transport in
Gauteng and the Premier of Gauteng were present.
It was agreed that transformation and modernisation in the
public transport sector needs to be addressed urgently and a
task team was formed to steer the process.
The MEC announced that the current contracts with the
Gauteng Department of Roads and Transport are to be
revised to negotiated contracts for a seven year period to
provide more stability within the public transport environment.
The escalation formula included in the current contracts will
also be revised to include the main cost drivers for the bus
industry and to allocate the correct weights to the various
components.
It was also indicated that no additional funds will be made
available to the current operators but that the Department is
willing to consider the rationalisation and integration of the
current services in an attempt to increase the current rate per
kilometre to an economically viable rate. The proposed
revised operating schedule and rate per kilometer will be
included in the envisaged negotiated contracts to be
concluded during October 2015.
Tshwane Rapid Transit (TRT) System: NWS is actively
involved in the designing process and is assisting the City of
Tshwane Municipality and project leaders in the evaluation
05|
Chief Executive Officer’s Report
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
• To ensure organizational excellence by investing in
workforce, systems and communities.
Group Management and Structure
The Group Structure of the Company for the year under review
remained unchanged in terms of the subsidiaries and
operating centres. The NTI Group still comprise of Northwest
Star (NWS) as its main bus operating subsidiary and
Atteridgeville Bus Service (ABS) which is a subsidiary of NWS.
The NWS operates through two centres, viz. Botlhaba Tswana
Transport and Batswana Gare Transport. All transport
activities are operated through four (4) depots all situated in
the City of Tshwane, Gauteng Province. The depots are based
located in Hammanskraal, Mabopane, Pretoria East (Waltloo)
and Pretoria West where ABS is also operating from.
The Head Office is situated at Temba in our Bus Manufacturing
Centre called Durabuild. The intention with Durabuild is to
resuscitate the bus manufacturing plant of the company and
relocate our bus repair facility to this centre. We have also
started with the Business Development Consultancy and in
the long run consider establishing a Transport Training
Academy.
CHALLENGES AND RISKS
The company was faced by the following risks and challenges
which has an adverse effect on achievement of three strategic
goals set at Welmore Hotel:
P The high vacancy rate of key strategic personnel – five
positions. An attempt to recruit and appoint personnel in
these positions was abandoned due to the shareholders
decision not fill in key positions until further notice. The
situation was exacerbated by the suspension of the
Company Sec re ta ry and the Marke t i ng &
Communications Manager towards the end of the
financial year while allegations of misconduct was still
being investigated.
P The method of subsidisation of passenger transport
services still remains a major impediment to bus
operations as it affect bus availability as well as
recapitalisation of other fixed assets. There is continuous
engagement with the Gauteng Department of Roads &
Transport with regards to the DoRA issue.
P The entire group (ABS and NWS) still operates by means
of seven (7) interim contracts which were signed between
1997 and 1998. Operators in Gauteng Province cannot
wait for the negotiated contracts to be negotiated and
signed.
Some of NTI operations – ABS and Batswana Gare, are
operating at a very poor rate due to unfavourable
conversion which took place when the “per passenger”
subsidy were converted directly to the “per Kilometre”
P A risk assessment session was held during the year and
the a risk register was compiled with the following risks
identified as needing attention of management:
o Financial position of the company
o Interim contracts – not long enough for capital
acquisition
o Other shareholder's priorities
o Limited financing alternatives due to PFMA
requirements
o Scarcity of spares
o Capacity constraints – skills sets
o Collusion and possible fraud by bus drivers
o Lack of implementation of the diversified strategy
o Outdated Organogram
o Outdated bus technology
o Aged workforce
o Inadequate performance management processes to
measure workforce performance
o Risk of system not having integration capability
I
06|
Chief Executive Officer’s Report
ATTERIDGEVILLE BUS SERVICE (SOC)PTY ATTERIDGEVILLE BUS SERVICE (SOC) LTD
Subsidiary, wholly owned by NWS
Transport operating service/ Bus company
NORTHWEST STAR (SOC) LTD NORTHWEST STAR (SOC) LTD
Subsidiary, wholly owned by NTI
Transport operating service/Bus company
NORTH WEST TRANSPORT INVESTMENT (SOC) LTD
Holding company, Wholly
owned by the NWPG
Investment & property
management
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
07|
Chief Executive Officer’s Report
CONCLUSION AND ACKNOWLEDGEMENTS
We particularly wish to thank the team from the Auditor General for their patience and advice and in some instances addressing the Board on difficult issues which took more than three years to resolve.
We wish to thank our two Executive Authorities who shared the period under review, Honourable MECs Raymond Elisha and Gaoage Oageng Molapisi for their dedication to NTI and its staff. Both MEC made it their business to visit the operating centres and to talk to staff to hear from them what challenges they were facing on day-to-day basis. We are privileged when MEC Molapisi kicked-off transport month by visiting the NTI operational area in the early hours of the morning and also utilised our bus to travel to Pretoria.
To our customers who are represented by the various Transport Forums we wish to say thank you for always representing our commuters and pointing out areas of improvement.
Last, but by no means least, the Board and Management wishes to express its gratitude to our staff that stood by this company through difficult times.
_______________________________Rannona A RantaoActing Chief Executive Officer
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
08|
Shareholding Structure
Organization Quick Facts
RA Rantao Chief financial officer(acting group chief executive officer)
KG Mapotse Company secretary
LG Molepo Executive: Internal audit
DHA vd Merwe Business development manager
TEL Ntlamelle Senior manager: Technical(acting general manager: Nortwest Star)
LN De Beer Senior manager: Operations
NH Mataboge Senior manager: Human resources
RA Komane Centre manager: Babelegi
JM Joubert Centre manager: Mabopane
NJJ Le Roux Centre manager: Pretoria West
Executive ManagementType of Business & Shareholding
SHAREHOLDINGSHolding company, wholly owned by
the North West Provincial Government
ENTITY CORE FUNCTIONSInvestment & Property
Management
NORTHWEST TRANSPORT INVESTMENT (SOC) LTD
100%SHAREHOLDINGS
Subsidiary, wholly owned byNTI
ENTITY CORE FUNCTIONSTransport operating service
NORTHWEST STAR (SOC) LTD
100%SHAREHOLDINGS
Subsidiary, wholly owned byNWS
ENTITY CORE FUNCTIONSTransport operating service
ATTERIDGEVILLE BUS SERVICE (SOC) LTD
100%
Human Capital Statistics
Number of Bus Fleet
Operating Centre
Total African Race Group
Employment equity
Females
213
11.3%88.7%
Buses
663
Man toBus Ratio
2.92
Staff
1 985
Managers
64
Head office
Batswana Gare Transport
Botlhaba Tswana Transport
Botlhaba Tswana Transport
Botlhaba Tswana Transport
Atteridgeville Bus Service
42
605(Mabopane)
617(Babelegi)
224(Waltloo)
157 (Pretoria West)
250 (Pretoria west)
P1 - P2 1 1 100%P3 - P4 8 4 50%P5 - P7 55 47 85%
No No % Management Total Black Black
Total 64 52 81%
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
09|
Directors’ Responsibilities and Approval
The directors are required in terms of the Companies Act 71 of 2008 to maintain adequate accounting records and are responsible for the content and integrity of the group annual financial statements and related financial information included in this report. It is their responsibility to ensure that the group annual financial statements fairly present the state of affairs of the group as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with South African Standards of Accounting Practice (GAAP). The external auditors are engaged to express an independent opinion on the group annual financial statements.
The group annual financial statements are prepared in accordance with South African Standards of Accounting Practice (GAAP) and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.
The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the group and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the board of directors sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effectiveaccounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the group and all employees are required to maintain the highest ethical standards in ensuring the group’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the group is on identifying, assessing, managing and monitoring all known forms of risk across the group. While operating risk cannot be fully eliminated, the group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethicalbehaviour are applied and managed within predetermined procedures and constraints.
The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the group annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.The directors have reviewed the group’s cash flow forecast for the year to 31 March 2016 and, in the light of this review and the current financial position, they are satisfied that the group has or has access to adequate
resources to continue in operational existence for the foreseeable future.
The external auditors are responsible for independently auditing and reporting on the group's group annual financial statements. The group annual financial statements have been examined by the group's external auditors and their report is presented on page s 10 to 15.
The group annual financial statements set out on pages 43 to 74, which have been prepared on the going concern basis, were approved by the board of directors on 28 May 2015 and were signed on its behalf by:
___________________Director
___________________Director
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
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ng
ag
ing
SA
BO
A
– S
AB
OA
has
form
ed a
Ta
sk T
ea
m
to a
ppro
ach
th
e
Min
iste
r of T
ran
sp
ort
un
der
the le
ad
ers
hip
of
Ho
n M
EC
Va
di.
Co
nclu
de
12
ye
ar
ne
gotia
ted
co
ntr
act
with
au
thoritie
s
No
t A
ch
ieve
d
Min
ute
s a
nd
oth
er
wo
rkin
g p
ap
ers
.
On
13 M
arc
h
the
Pre
mie
r of
Ga
ute
ng
he
ld a
me
eting
with
all
the
co
ntr
acte
d p
ub
lic
tra
nsp
ort
op
era
tors
in G
au
teng
.
It w
as r
eso
lve
d t
ha
t
the
pu
blic
pa
sse
ng
er
se
rvic
es w
ith
in t
he
pro
vin
ce n
ee
ds t
o b
e
ratio
na
lise
d,
tra
nsfo
rme
d a
nd
mo
de
rnis
ed.
A t
ask t
eam
co
nsis
tin
g
off
icia
ls a
nd
tra
nsp
ort
op
era
tors
wa
s f
orm
ed t
o
co
ord
ina
te t
he
Ac
hie
vin
g
20
15
of
Do
RT
17
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
1:
To
im
pro
ve
an
d e
xp
an
d t
ran
sp
ort
serv
ices t
o b
e s
elf
-su
sta
inin
g b
y 2
01
9
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y
Ta
rge
ts
Ac
hie
ve
me
nts
on
Q
ua
rte
rly T
arg
ets
Me
an
s o
f V
eri
fic
ati
on
/Po
rtfo
lio
of
Evid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
pro
ce
ss.
An
ag
reem
en
t w
as
rea
ch
ed
th
at se
ven
ye
ar
ne
gotia
ted
co
ntr
acts
will
be
co
nclu
de
d w
ith
all
the
op
era
tors
by
Octo
ber
20
15.
C
onclu
de
tw
o
pro
fita
ble
co
ntr
acts
in
de
pe
nd
en
t fr
om
th
e n
eg
otia
ted
co
ntr
act
but fu
nd
ed
by G
ove
rnm
ent.
(NT
I A
nnu
al P
lan
)
Su
ccessfu
lly
ten
de
r fo
r at
least tw
o
Go
ve
rnm
ent
fun
de
d
co
ntr
act
Su
bm
it t
en
de
rs fo
r a
ll a
dve
rtis
ed p
asse
ng
er
tra
nsp
ort
se
rvic
es
No
ne
Ad
ve
rtis
ed
co
ntr
acts
a
s y
et.
N/A
N
/A
A
ch
ieve
at
lea
st
1
su
cce
ssfu
l te
nd
er
No
t a
ch
ieve
d.
No
ne
No
tra
nsp
ort
se
rvic
es w
ere
put to
te
nd
er
by
Go
ve
rnm
ent.
Su
bm
it t
en
de
rs fo
r a
ll a
dve
rtis
ed p
asse
ng
er
tra
nsp
ort
se
rvic
es
On
e in
de
pe
nd
ent
priva
te
se
cto
r co
ntr
act
ten
der
su
bm
itte
d iro
TU
T.
No
oth
er
ap
pro
pria
te
ten
de
r in
vitatio
ns r
ece
ive
d
an
d o
r p
ub
lish
ed
TU
T T
en
der
Do
cum
ents
ava
ilable
.
No
oth
er
ap
pro
pria
te
ten
de
r in
vita
tion
s
rece
ive
d a
nd
or
pu
blis
hed
.
Th
e
ten
de
r w
as
su
sp
end
ed
aft
er
stu
de
nt
uprisin
g.
Ach
ieve
at
lea
st
1
su
cce
ssfu
l te
nd
er
No
t A
ch
ieve
d.
No
ne
wsp
ap
er
an
d
Go
ve
rnm
ent
Ga
ze
tte
ten
de
rs w
ere
pu
blis
he
d.
No
oth
er
ap
pro
pria
te
ten
de
r in
vita
tion
s
we
re r
ece
ive
d f
rom
Go
ve
rnm
ent
an
d o
r
pu
blis
hed
.
18
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
1:
To
im
pro
ve
an
d e
xp
an
d t
ran
sp
ort
serv
ices t
o b
e s
elf
-su
sta
inin
g b
y 2
01
9
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y
Ta
rge
ts
Ac
hie
ve
me
nts
on
Q
ua
rte
rly T
arg
ets
Me
an
s o
f V
eri
fic
ati
on
/Po
rtfo
lio
of
Evid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
C
onclu
de
tw
o
pro
fita
ble
in
de
pe
nd
en
t p
riva
te
se
cto
r p
asse
ng
er
tra
nsp
ort
co
ntr
acts
.
(NT
I A
nnu
al P
lan
)
Su
ccessfu
lly
ten
de
r fo
r at
least
two
p
riva
te s
ecto
r co
ntr
act.
Su
bm
it te
nd
ers
fo
r a
ll a
dve
rtis
ed tra
nsp
ort
se
rvic
es
No
t a
ch
ieve
d
Ne
wsp
ap
er
ad
ve
rt
No
priva
te s
ect
or
ten
de
r w
as
ad
ve
rtis
ed
A
ch
ieve
at
lea
st
1
su
cce
ssfu
l te
nd
er
No
t A
ch
ieve
d
Bid
Do
cu
me
nts
T
UT
te
nd
er
wa
s
ad
ve
rtis
ed a
nd
bid
d
ocu
me
nts
we
re
su
bm
itte
d.
S
ub
mit te
nd
ers
fo
r a
ll a
dve
rtis
ed tra
nsp
ort
se
rvic
es
No
t a
ch
ieve
d
Bid
do
cu
me
nts
S
ince
th
e T
UT
te
nd
er
no
oth
er
pu
blic
te
nd
er
we
re
ad
ve
rtis
ed
A
ch
ieve
at
lea
st
1
su
cce
ssfu
l te
nd
er
No
t A
ch
ieve
d
No
ne
- N
o p
ub
lica
tion
of
Te
nd
ers
in
th
e r
ele
van
t n
ew
sp
ap
ers
.
No
su
ita
ble
priva
te
se
cto
r te
nd
ers
we
re
ad
ve
rtis
ed
1.2
: R
ep
lac
e 3
38
bu
se
s b
y M
arc
h
20
17
(NT
I A
nnu
al P
lan
)
Su
bm
it p
rop
osal fo
r fu
nd
ing
of
33
8
bu
se
s t
o t
he
Bo
ard
fo
r a
pp
rova
l
Re
pla
ce 2
4
bu
se
s.
Ob
tain
bid
s fro
m
su
pp
liers
for
24
bu
se
s
No
t a
ch
ieve
d.
No
ne
. A
wa
itin
g R
30 m
illio
n
allo
ca
ted
by
sh
are
ho
lde
r at
fin
an
cia
l ye
ar
en
d
20
13/2
01
4.
P
lace
ord
ers
for
24
bu
se
s
No
t a
ch
ieve
d.
No
ne
Aw
aitin
g R
30 m
illio
n
allo
ca
ted
by
Sh
are
ho
lder
at
fin
an
cia
l ye
ar-
en
d,
20
13/1
4.
Ag
ree d
eliv
ery
sch
ed
ule
with
a
pp
rove
d s
up
plie
r
No
t a
ch
ieve
d
No
ne
NT
I is
aw
aitin
g t
he
R
30 m
illio
n f
rom
th
e
De
pa
rtm
en
t of
Co
mm
un
ity
Safe
ty &
T
ran
spo
rt
Ma
na
ge
me
nt.
Ob
tain
Bo
ard
a
nd
S
hare
ho
lder
Re
qu
est
fun
din
g
pro
po
sa
ls f
or
31
4
bu
se
s fro
m s
up
plie
rs
Pro
po
sal fo
r fu
nd
ing
of
42
1 b
use
s s
ub
mitte
d t
o
Su
bm
issio
n d
ocum
en
t A
wa
itin
g a
ppro
va
l fo
r fu
nd
s b
y
sh
are
ho
lde
r.
19
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
1:
To
im
pro
ve
an
d e
xp
an
d t
ran
sp
ort
serv
ices t
o b
e s
elf
-su
sta
inin
g b
y 2
01
9
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y
Ta
rge
ts
Ac
hie
ve
me
nts
on
Q
ua
rte
rly T
arg
ets
Me
an
s o
f V
eri
fic
ati
on
/Po
rtfo
lio
of
Evid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
ap
pro
va
l fo
r fu
nd
ing
of
31
4 b
use
s
(NT
I A
nnu
al
Pla
n)
B
oD
an
d S
ha
reh
old
er
for
ap
pro
va
l.
ava
ilable
.
S
ubm
it b
us fu
nd
ing
p
rop
osa
l to
BO
D a
nd
sh
are
ho
lde
r fo
r a
pp
rova
l.
Ach
ieve
d.
Mo
tiva
tio
n/S
ubm
issio
n
ava
ilable
.
A
motiva
tio
n
to
req
uest
fun
din
g w
as
pre
pa
red
an
d
su
bm
itte
d
to
Sh
are
ho
lder
thro
ug
h
the
Bo
ard
.
Ob
tain
ap
pro
va
l fr
om
B
OD
an
d
Sh
are
ho
lder
for
fun
din
g.
No
t a
ch
ieve
d.
A
wa
it
ap
pro
va
l fr
om
th
e
Sha
reh
old
er.
Mo
tiva
tio
n/S
ubm
issio
n
ava
ilable
as s
ub
mitte
d t
o
Bo
D a
nd
Sh
are
ho
lde
r.
Aw
ait a
pp
rova
l fr
om
th
e S
ha
reh
old
er.
A
m
otiva
tio
n
to
req
uest
fun
din
g w
as
pre
pa
red
an
d
su
bm
itte
d
to
Sh
are
ho
lder
thro
ug
h
the
Bo
ard
.
Pla
ce
ord
ers
for
279
bu
se
s.
No
t A
ch
ieve
d.
Ca
ll fo
r te
nd
ers
to
su
pply
54
0
buse
s
we
re
ad
ve
rtis
ed
in
the
ne
wsp
ap
ers
a
nd
th
e
ten
de
rs
will
b
e
ad
jud
ica
ted
in
the
1
st
Qu
art
er
of
201
5/2
01
6
Fin
an
cia
l Y
ear
Ne
ws
Pa
pe
r
Ad
vert
ise
me
nt
for
ca
ll fo
r
Te
nd
ers
No
fu
nd
s
we
re
ava
ilable
to
e
ng
ag
e
into
th
e
acq
uis
itio
n
of
ne
w b
use
s.
1.3
: Im
ple
me
nt
a
ma
inte
na
nce s
tra
teg
y
De
velo
p a
nd
a
pp
rove
a
ma
inte
na
nce
str
ate
gy a
nd
po
licie
s
in a
cco
rda
nce w
ith
th
e c
om
po
sitio
n o
f
Ma
inte
na
nce
str
ate
gy
ap
pro
ve
d a
nd
Im
ple
me
nte
d
De
ve
lop a
m
ain
ten
ance s
tra
teg
y
an
d
am
en
d c
om
pa
ny
po
licie
s a
cco
rdin
gly
No
t a
ch
ieve
d
M
ain
ten
ance
str
ate
gy
do
cu
me
nt a
nd a
me
nd
ed
po
licy d
ocu
me
nts
Ma
inte
na
nce
str
ate
gy b
ase
d o
n
the
su
cce
ssfu
l p
roce
ss o
f so
urc
ing
n
ew
fle
et
of
buse
s.
C
urr
en
t m
ain
ten
an
ce
20
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
1:
To
im
pro
ve
an
d e
xp
an
d t
ran
sp
ort
serv
ices t
o b
e s
elf
-su
sta
inin
g b
y 2
01
9
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y
Ta
rge
ts
Ac
hie
ve
me
nts
on
Q
ua
rte
rly T
arg
ets
Me
an
s o
f V
eri
fic
ati
on
/Po
rtfo
lio
of
Evid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
the
fle
et
and O
EM
re
qu
ire
me
nts
pro
ce
ss f
ollo
we
d
with
th
e o
ld b
use
s.
A
ppro
val o
f m
ain
ten
ance s
tra
teg
y
an
d p
olic
ies b
y
BO
D
No
t a
ch
ieve
d.
No
ne
Th
e p
roce
ss o
f a
pp
oin
tin
g
co
nsu
lta
nts
to r
evi
ew
C
om
pa
nie
s’ p
olic
ies
an
d p
roce
dure
s is
in
pro
gre
ss.
Up
on
ap
pro
va
l o
f th
e
po
licie
s a
nd
p
roce
du
res t
he
ma
inte
na
nce
str
ate
gy w
ill b
e
de
ve
lop
ed a
nd
im
ple
me
nte
d.
O
EM
Accre
dite
d
se
rvic
e fa
cili
ty a
nd
tr
ain
ing o
f te
ch
nic
al
pe
rso
nn
el o
n p
olic
ies
an
d p
roce
dure
s
No
t a
ch
ieve
d
No
ne
Tra
inin
g f
acili
ty
esta
blis
he
d a
t B
abe
leg
i b
ut
not
accre
dite
d
M
ain
ten
ance
of
ne
w
ge
nera
tio
n v
eh
icle
s
do
ne in
ho
use
In a
t le
ast
on
e d
ep
ot
Ach
ieve
d
No
ne
No
ne
E
qu
ip th
e
wo
rksh
op
s in
alig
nm
ent
with
th
e
OE
M r
eq
uirem
ents
to
obta
in f
ull
accre
ditatio
n.
Eq
uip
w
ork
sh
op
s
with
e
qu
ipm
ent
ne
ede
d t
o
ma
inta
in n
ew
g
en
era
tion
b
use
s.
(N
TI
An
nu
al P
lan
)
De
term
ine t
he
accre
ditatio
n
req
uire
me
nts
fro
m
OE
M
No
t a
ch
ieve
d
No
ne
T
he p
ositio
n o
f th
e
Tra
inin
g M
ana
ger
wa
s v
acan
t.
An
a
ctin
g T
rain
ing
M
an
ag
er
will
be
ap
poin
ted
in
th
e 2
nd
Q
ua
rte
r to
est
ab
lish
a
fu
lly-f
led
ge
d
tra
inin
g f
acili
ty.
Acq
uire w
ork
sh
op
eq
uip
me
nt
req
uire
d
for
the a
ccre
dita
tion
No
t a
ch
ieve
d.
Lis
t of
eq
uip
me
nt
Th
e r
eq
uire
d
wo
rksh
op
eq
uip
me
nt
wa
s d
ete
rmin
ed
an
d 21
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
1:
To
im
pro
ve
an
d e
xp
an
d t
ran
sp
ort
serv
ices t
o b
e s
elf
-su
sta
inin
g b
y 2
01
9
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y
Ta
rge
ts
Ac
hie
ve
me
nts
on
Q
ua
rte
rly T
arg
ets
Me
an
s o
f V
eri
fic
ati
on
/Po
rtfo
lio
of
Evid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
of
wo
rksh
op
s
co
uld
no
t b
e
pu
rch
ase
d d
ue t
o
fin
an
cia
l co
nstr
ain
ts.
O
bta
in A
ccre
ditatio
n
No
t a
ch
ieve
d.
No
ne
Th
e e
qu
ipm
en
t
acq
uire
d is n
ot
en
oug
h t
o justify
ap
plic
ation
fo
r
accre
ditatio
n.
1.4
: Im
pro
ve
o
pe
rati
on
al
eff
icie
ncie
s
Imp
lem
ent a
fu
lly
fun
ctio
na
l m
on
ito
ring
div
isio
n
for
ove
rall
co
ntr
ol
ove
r th
e e
lectr
on
ic
ticke
ting
syste
m,
Fle
et
Ma
na
ge
me
nt
syste
m a
nd
Insp
ectio
n.
Esta
blis
h a
co
ntr
ol
de
part
me
nt
for
the
mo
nito
ring
of
se
rvic
e leve
ls
an
d
co
mp
lian
ce
o
n b
oth
syste
ms.
Su
bm
it a
de
taile
d
mo
nito
ring
po
licy
do
cu
me
nt a
nd c
on
tro
l p
roce
du
re a
nd
obta
in
ap
pro
va
l fo
r im
ple
me
nta
tio
n
Mo
nito
ring
Po
licy a
nd
co
ntr
ol pro
ce
dure
su
bm
itte
d a
nd a
pp
rove
d
at
EX
CO
, b
ut
imp
lem
en
tatio
n w
ith
he
ld
pe
ndin
g fin
alis
ation o
f
sm
art
ca
rd c
ontr
ol syste
m
inve
stig
atio
n.
Mo
nito
ring
Pro
po
sa
l
su
bm
issio
n a
va
ilable
an
d
EX
CO
app
rove
d m
inu
tes. N
on
e
M
on
ito
ring
d
ep
art
me
nt
eq
uip
pe
d
an
d o
pe
ratio
na
l w
ith
a
pp
rove
d p
roce
dure
s
No
t a
ch
ieve
d.
Weekly
an
d m
onth
ly
syste
m g
enera
ted
rep
ort
s.
Ma
na
ge
me
nt
de
cid
ed
no
t to
esta
blis
h a
ce
ntr
alis
ed
co
ntr
ol
de
part
me
nt fo
r th
e
gro
up
fo
r im
pro
ve
d
resu
lts.
Mo
nito
ring
syste
m
fully
fu
nctio
na
l.
No
t a
ch
ieve
d
No
ne
Sm
art
card
dis
co
ntin
ue
d d
ue
to
imp
lem
en
tatio
n
ch
alle
ng
es.
22
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
1:
To
im
pro
ve
an
d e
xp
an
d t
ran
sp
ort
serv
ices t
o b
e s
elf
-su
sta
inin
g b
y 2
01
9
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y
Ta
rge
ts
Ac
hie
ve
me
nts
on
Q
ua
rte
rly T
arg
ets
Me
an
s o
f V
eri
fic
ati
on
/Po
rtfo
lio
of
Evid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
Im
ple
me
nt
pa
sse
ng
er
com
pla
int
and
com
mu
nic
atio
n
syst
em
A c
ust
om
er
surv
ey
an
d
com
pla
int
syst
em
is
fully
fu
nct
ion
al.
De
velo
p a
nd
ob
tain
a
pp
rova
l fo
r a
pa
sse
ng
er
com
pla
int
an
d c
om
mu
nic
atio
n
syst
em
.
Pro
po
sal o
bta
ined
.
Pro
po
sal d
ocum
en
t
ava
ilable
Pro
po
sa
l n
ot
su
bm
itte
d fo
r
ap
pro
val d
ue
to
fin
an
cia
l co
nstr
ain
ts.
Im
ple
me
nt
pa
sse
ng
er
com
pla
int
and
com
mu
nic
atio
n
syst
em
No
t a
chie
ved
No
ne
Pro
po
sal
su
sp
en
ded
du
e
to
budg
eta
ry
co
nstr
ain
ts
M
on
itor
syst
em
an
d
me
asu
re
eff
ect
ive
ne
ss m
onth
ly
No
t a
chie
ved
No
ne
Pro
po
sal
su
sp
en
ded
du
e
to
budg
eta
ry
co
nstr
ain
ts
23
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
2.2
S
TR
AT
EG
IC G
OA
L 2
Str
ate
gic
Ori
en
ted
Go
al
2
Tra
ns
po
rt I
nve
stm
en
ts
Go
al S
tate
me
nt
To
in
cre
as
e r
eve
nu
e t
hro
ug
h d
ive
rsif
ied
in
ve
stm
en
ts i
n t
ran
sp
ort
re
late
d v
en
ture
s.
Str
ate
gic
Go
al
2:
To
in
cre
as
e r
eve
nu
e t
hro
ug
h d
ive
rsif
ied
in
ve
stm
en
ts in
tra
ns
po
rt r
ela
ted
ve
ntu
res
.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
2.1
: In
cre
as
e
reve
nu
e b
y R
15
mil
lio
n b
y 2
01
7.
Est
ab
lish
ne
w
bu
sin
ess
ve
ntu
res
an
d in
cre
ase
re
ven
ue b
y R
15
m
illio
n.
R3
mill
ion
in
cre
ase
in
reve
nu
e b
y e
sta
blis
hin
g
ne
w b
usi
ness
ve
ntu
res.
An
ap
pro
ved
new
ve
ntu
res
stra
teg
y a
nd
inve
stm
en
t p
olic
y b
y E
XC
O a
nd
B
OD
Bu
sin
ess
de
velo
pm
en
t st
rate
gy
subm
issio
n
de
velo
pe
d t
o b
e s
ubm
itte
d
in Q
ua
rte
r 2
to E
XC
O a
nd
B
oD
fo
r a
pp
rova
l.
Bu
sin
ess D
eve
lopm
ent
Str
ate
gy
Su
bm
issio
n
do
cu
me
nt.
Bu
sin
ess
De
velo
pm
ent
Str
ate
gy
to b
e
ap
pro
ved b
y E
XC
O
an
d B
oD
.
E
sta
blis
hm
en
t of
two
n
ew
busi
ness
ve
ntu
res
No
t a
chie
ved
. 1
. C
opy
of
the T
UT
te
nd
er.
2
. Jo
int
Ve
ntu
re
pro
po
sa
l to
ente
r in
to
a jo
int ve
ntu
re w
ith
Bu
sm
ark
20
00.
3.
Su
bm
issio
n t
o
LE
AS
E D
ura
bu
ild
Fa
cto
ry t
o
Bu
sm
ark
20
00.
4.
“NT
I R
EC
AP
ITIL
ISA
TIO
N
PR
OP
OS
AL
”,
5.
Bu
sin
ess S
trate
gy
an
d V
entu
re.
6.
Str
ate
gy
for
En
du
ring
S
usta
ina
bili
ty.
Pre
vio
us t
end
ers
th
at
ha
ve b
ee
n s
ubm
itte
d
ea
rlie
r th
is y
ear
we
re
no
t su
cce
ssf
ul.
C
urr
en
tly N
TI is
a
wa
itin
g t
he
outc
om
e
of th
e
1.
TU
T T
en
der
an
d
als
o t
he
2
. T
he a
pp
rova
l of
the
Le
ase o
f D
ura
bu
ild t
o
Bu
sm
ark
20
00
su
bm
issio
n,
3.
Th
e a
pp
rova
l of
the
NT
I R
EC
AP
ITIL
ISA
TI
ON
PR
OP
OS
AL
an
d
4.
Th
e a
pp
rova
l of
the
FU
ND
ING
T
HA
T h
as
be
en
R
EQ
UE
ST
ED
fr
om
th
e N
WP
G. 2
4|
NO
RT
HW
ES
T T
RA
NS
PO
RT
IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
2:
To
in
cre
as
e r
eve
nu
e t
hro
ug
h d
ive
rsif
ied
in
ve
stm
en
ts in
tra
ns
po
rt r
ela
ted
ve
ntu
res
.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
No
ne
w b
usin
ess
ve
ntu
res h
ave
be
en
e
sta
blis
he
d.
Th
e f
ollo
win
g
do
cu
me
nts
ha
ve
b
ee
n c
reate
d a
nd
co
mp
iled
aw
aitin
g
ap
pro
va
l to
esta
blis
h
ne
w b
usin
ess
ven
ture
s:
1.
Su
bm
issio
n t
o
LE
AS
E D
ura
bu
ild
Fa
cto
ry t
o
Bu
sm
ark
20
00 t
o
bu
ild b
od
ies a
nd
a
2
. Jo
int
Ve
ntu
re
pro
po
sa
l to
ente
r in
to a
jo
int
ve
ntu
re w
ith
B
usm
ark
20
00.
3.
Str
ate
gy fo
r E
ndu
rin
g
Su
sta
ina
bili
ty t
ha
t in
clu
de
th
e
ch
alle
ng
es a
s
we
ll a
s t
he
re
qu
est
to t
he
Sh
are
ho
lde
r to
a
ssis
t w
ith
th
e
Do
RA
issu
e.
4.
Co
mp
reh
ensiv
e
req
uest
to B
oa
rd
an
d E
xecu
tive
C
ou
ncil
of
the
NW
PG
title
d “
NT
I 25
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
2:
To
in
cre
as
e r
eve
nu
e t
hro
ug
h d
ive
rsif
ied
in
ve
stm
en
ts in
tra
ns
po
rt r
ela
ted
ve
ntu
res
.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r
An
nu
al
Ta
rge
t 2
01
4/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
RE
CA
PIT
ILIS
AT
IO
N
PR
OP
OS
AL
”,
5.
Bu
sin
ess
Str
ate
gy
an
d
Ve
ntu
re
su
bm
issio
n fo
r a
pp
rova
l. In
ad
diti
on t
he
follo
win
g t
end
er
we
re
pic
ke
d u
p a
nd
su
bm
itte
d:
TU
T fo
r th
e p
rovi
sio
n
of
stu
de
nt
tra
nsp
ort
se
rvic
es f
or
the T
UT
.
Sta
bili
ze a
nd
mo
nito
r th
e n
ew
bu
sin
ess
ve
ntu
res
No
t a
chie
ved
.
No
ne
Bid
su
sp
end
ed
b
y T
UT
a
nd
n
o
new
p
ub
lish
ed
te
nd
er
ad
vert
ise
me
nt
ca
llin
g
for
pro
po
sals
to
p
rovi
de
pa
sse
ng
er
tra
nsp
ort
serv
ice
s
form
go
vern
me
nt
an
d
priva
te
co
mp
an
ies
an
d in
stitu
tio
ns.
26
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
2.3
S
TR
AT
EG
IC G
OA
L 3
Str
ate
gic
Ori
en
ted
Go
al
3
Org
an
isa
tio
na
l E
xc
ell
en
ce
Go
al S
tate
me
nt
To
en
su
re o
rga
niz
ati
on
al
exc
ell
en
ce b
y i
nve
sti
ng
in
wo
rkfo
rce, s
ys
tem
s a
nd
co
mm
un
itie
s.
Str
ate
gic
Go
al
3:
To
en
su
re o
rga
niz
ati
on
al ex
ce
lle
nc
e b
y i
nve
sti
ng
in
wo
rkfo
rce
, s
ys
tem
s a
nd
co
mm
un
itie
s.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r A
nn
ua
l T
arg
et
20
14/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
3.1
: A
ch
ieve
o
rga
nis
ati
on
al
tra
ns
form
ati
on
th
rou
gh
a h
igh
ly
sk
ille
d a
nd
p
erf
orm
an
ce
dri
ve
n
wo
rkfo
rce
Op
timiz
e t
he
o
rga
nis
atio
na
l st
ruct
ure
Re
vie
w
bu
sin
ess
p
roce
sse
s a
nd
a
dju
st
org
an
isa
tion
al
stru
ctu
re.
Ob
tain
BO
D
ap
pro
val fo
r p
rop
ose
d
org
an
isa
tion
al
stru
ctu
re.
No
t a
chie
ved
Do
cum
ent
on
pro
po
se
d
op
tima
l corp
ora
te
str
uct
ure
su
bm
itte
d to
B
oard
for
appro
val
La
ck o
f fu
nd
s to
a
pp
oin
t a
con
sulta
nt;
a
nd
th
e e
xerc
ise
will
b
e d
on
e in
tern
ally
by
a T
ask
Te
am
Im
ple
me
nt th
e r
e-
en
gin
ee
ring
pro
cess
.
No
t a
chie
ved
. N
one
Re
qu
est
fo
r p
rop
osa
ls f
or
the
turn
aro
un
d s
trate
gy
wa
s a
dve
rtis
ed
&
n
ot
adju
dic
ate
d d
ue
to
lack
of
fun
ds
S
erv
ice
exc
elle
nce
a
nd
est
ab
lish
me
nt
of te
chn
ica
l tr
ain
ing
se
ctio
n
Te
chn
ica
l T
rain
ing
C
ente
r fu
lly
eq
uip
pe
d w
ith
tra
inin
g
eq
uip
me
nt.
T
rain
ing
C
entr
e a
nd
em
plo
yee
s fu
lly a
ccre
dite
d
with
M
ER
SE
TA
.
De
term
ine
eq
uip
me
nt
and
tra
inin
g
req
uire
me
nts
.
Ob
tain
ap
pro
val f
or
imp
lem
en
tatio
n f
rom
E
XC
O
No
t a
chie
ved
N
one
La
ck o
f fu
nd
s
Im
ple
me
nt tr
ain
ing
p
lan
and
eq
uip
pin
g
of
tra
inin
g c
entr
e
No
t a
ch
ieve
d.
No
ne
Th
e r
eq
uire
d
wo
rksh
op
eq
uip
me
nt
wa
s d
ete
rmin
ed
an
d
co
uld
no
t b
e
pu
rch
ase
d d
ue t
o
27
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
3:
To
en
su
re o
rga
niz
ati
on
al ex
ce
lle
nc
e b
y i
nve
sti
ng
in
wo
rkfo
rce
, s
ys
tem
s a
nd
co
mm
un
itie
s.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r A
nn
ua
l T
arg
et
20
14/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
fin
an
cia
l co
nstr
ain
ts.
Co
ntin
ue
tra
inin
g
No
t a
chie
ved
No
ne
No
fu
nd
ing
Ob
tain
acc
red
itatio
n
No
t A
chie
ved
. N
one
No
Fu
ndin
g
E
nsu
re t
he
util
iza
tion
of
the
Em
plo
yee
We
llne
ss
Pro
gra
mm
e.
Re
du
ce
ab
sente
eis
m
by
20
%
An
aly
se m
on
thly
re
po
rts
an
d
imp
lem
en
t co
rre
ctiv
e
act
ion
Ach
ieve
d
Re
po
rts
fro
m I
CA
S
No
ne
A
naly
se m
on
thly
re
po
rts
an
d
imp
lem
en
t co
rre
ctiv
e
act
ion
No
t a
chie
ved
.
Ma
na
ge
me
nt to
te
rmin
ate
IC
AS
as
the
ir s
erv
ice
re
nd
ere
d w
ithin
th
e
nin
e (
9)
mo
nth
s p
erio
d o
f a
pp
oin
tme
nt
did
not
me
et
exp
ecta
tion
of
red
ucin
g
ab
se
nte
eis
m.
An
aly
se m
on
thly
re
po
rts
an
d
imp
lem
en
t co
rre
ctiv
e
act
ion
No
t a
chie
ved
No
ne
ICA
S n
ot
pe
rfo
rmin
g
to e
xpe
cta
tion
s
A
naly
se m
on
thly
re
port
s a
nd
imp
lem
en
t co
rre
ctiv
e
act
ion
No
t A
chie
ved
. N
one
ICA
S n
ot
pe
rfo
rmin
g
to e
xpe
cta
tion
.
ICA
S s
erv
ice
s
term
ina
ted
.
Imp
lem
ent a
P
erf
orm
an
ce
Ma
na
ge
me
nt
Sys
tem
for
all
staff
P06+
to h
ave
p
erf
orm
ance
co
ntr
act
s
De
velo
p a
nd
ag
ree
pe
rform
ance
co
ntr
act
s fo
r a
ll P
06+
em
plo
yee
s
No
t a
chie
ved
No
ne
It r
eq
uire
s th
e
ap
poin
tme
nt
of
a
pro
fessio
na
l in
H
um
an
Re
so
urc
es.
28
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
3:
To
en
su
re o
rga
niz
ati
on
al ex
ce
lle
nc
e b
y i
nve
sti
ng
in
wo
rkfo
rce
, s
ys
tem
s a
nd
co
mm
un
itie
s.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r A
nn
ua
l T
arg
et
20
14/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
M
ea
su
re
pe
rform
ance a
ga
inst
targ
ets
mo
nth
ly.
No
t a
ch
ieve
d.
No
ne
Th
e p
roce
ss o
f a
pp
oin
tin
g
co
nsu
lta
nts
to r
evi
ew
C
om
pa
nie
s’ p
olic
ies
an
d p
roce
dure
s is in
p
rog
ress.
Pe
rfo
rma
nce
ma
nag
em
ent
po
licy
will
be
deve
lope
d
du
rin
g t
he p
rocess
an
d s
ub
seq
ue
ntly
imp
lem
en
ted.
T
rain
an
d d
eve
lop
e
mp
loye
es
De
velo
p a
nd
im
ple
me
nt
an
a
pp
rove
d
su
cce
ssio
n
pla
n.
Tra
in
em
plo
yee
s in
lin
e w
ith
th
e
pla
n
De
term
ine c
ritica
l p
ositio
ns f
or
su
cce
ssio
n a
nd
de
ve
lop
tra
inin
g p
lan
No
t a
ch
ieve
d
No
ne
Th
ere
is a
va
ca
ncy
for
a S
enio
r H
um
an
Re
sou
rce
s M
ana
ge.
r
Im
ple
me
nt tr
ain
ing
p
lan
.
No
t a
ch
ieve
d.
No
ne
Th
e s
ucce
ssio
n p
lan
wa
s
aw
aitin
g
fin
alis
ation
of
the
em
plo
yme
nt
eq
uity
(EE
) p
lan
, wh
ich
has
just
be
en
a
pp
rove
d
by
De
pa
rtm
ent
of
La
bou
r.
E
valu
ate
tra
ine
es
mo
nth
ly.
No
t A
ch
ieve
d
N
on
e
In
p
roce
ss
of
revis
ing
th
e
su
cce
ssio
n
pla
n
po
licy.
3.2
:
Ac
hie
ve
a R
50
m
illio
n
imp
rove
me
nt
on
Re
aliz
e a
n
imp
rove
me
nt of
R5
0
mill
ion
on
th
e
R5
0 m
illio
n n
et
pro
fit
imp
rove
me
nt.
De
ve
lop a
bre
ak-
eve
n s
tra
teg
y
an
d
ob
tain
ap
pro
va
l fr
om
No
t a
ch
ieve
d
No
ne
Co
mp
an
y a
t in
itia
l sta
ge
s o
f im
ple
me
nting
cost
29
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
3:
To
en
su
re o
rga
niz
ati
on
al ex
ce
lle
nc
e b
y i
nve
sti
ng
in
wo
rkfo
rce
, s
ys
tem
s a
nd
co
mm
un
itie
s.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r A
nn
ua
l T
arg
et
20
14/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
ne
t p
rofi
t co
mp
an
y’s
ne
t pro
fit
the
BO
D.
ma
nag
em
ent
str
ate
gy
Im
ple
me
nt a
pp
rove
d
str
ate
gy a
nd
mo
nito
r m
on
thly
.
No
t a
ch
ieve
d.
No
ne
Str
ate
gy
not
ye
t su
bm
itte
d
to
the
BO
D
for
ap
pro
va
l,
ho
we
ve
r m
eeting
s w
ere
h
eld
w
ith
m
iddle
a
nd
se
nio
r m
an
ag
em
ent
to
cut
co
sts
a
nd
clo
sely
m
on
ito
r pro
cu
rem
ent
with
in
the
ir
ce
ntr
es.
An
aly
sis
is
b
ein
g
ma
de
o
n
co
sts
incurr
ed
on
p
art
s
an
d
va
lue
a
dd
o
n
mo
nth
ly
co
ntr
acte
d
se
rvic
es,
i.e
. E
AP
(e
mp
loye
e
assis
ted
pro
gra
mm
e,
by
ICA
S,
etc
.)
M
on
thly
re
po
rtin
g o
n
ach
ieve
me
nts
.
No
t a
ch
ieve
d
No
ne
Str
ate
gy n
ot
de
ve
lop
ed
Mo
nth
ly r
ep
ort
ing
on
ach
ieve
me
nts
.
No
t a
ch
ieve
d.
No
ne
Str
ate
gy n
ot
de
ve
lop
ed
3
.3:
Se
cu
re
bu
sin
es
s
inte
llig
en
ce
an
d
co
mm
un
ica
tio
n
sys
tem
s t
o
en
ha
nc
e
org
an
izati
on
al
pe
rfo
rma
nc
e
Imp
lem
ent a
fu
lly
fun
ctio
na
l C
olla
bo
rative
W
ork
sp
ace a
nd
Intr
an
et.
De
velo
pm
ent
of
sp
ecific
atio
ns,
de
sig
n a
nd
cu
sto
miz
ation
b
ase
d o
n u
se
r sp
ecific
atio
ns.
Imp
lem
enta
tio
n
an
d tra
inin
g o
f re
leva
nt
use
rs.
De
ve
lop
sp
ecific
atio
ns a
nd
ob
tain
ap
pro
va
l fo
r im
ple
me
nta
tio
n
No
t a
ch
ieve
d
N
one
T
he IT
infr
astr
uctu
re
an
d n
etw
ork
not
sta
ble
to p
erm
it
ad
ditio
na
l p
rog
ram
s
to t
he
exis
tin
g
str
uct
ure
.
30
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
3:
To
en
su
re o
rga
niz
ati
on
al ex
ce
lle
nc
e b
y i
nve
sti
ng
in
wo
rkfo
rce
, s
ys
tem
s a
nd
co
mm
un
itie
s.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r A
nn
ua
l T
arg
et
20
14/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
Fin
al
acce
pta
nce
an
d s
ign
off
by
use
rs.
D
esig
n a
nd
cu
sto
miz
e b
ase
d o
n
use
r sp
ecific
atio
ns.
No
t a
ch
ieve
d.
No
ne
IT infr
astr
uct
ure
an
d
ne
two
rk d
oe
s n
ot
ha
ve
th
e c
ap
acity to
w
ith
sta
nd
ba
nd
wid
th
inte
nsiv
e
ap
plic
ation
s.
Els
e
ap
plic
ation
s w
ill f
all
ove
r.
Im
ple
me
nta
tio
n a
nd
tr
ain
ing
of
rele
va
nt
use
rs.
No
t a
ch
ieve
d
No
ne
IT infr
astr
uct
ure
an
d
ne
two
rk d
oe
s n
ot
ha
ve
th
e c
ap
acity to
w
ith
sta
nd
ba
nd
wid
th
inte
nsiv
e
ap
plic
ation
s.
F
ina
l a
cce
pta
nce
a
nd
sig
noff
by u
se
rs. N
ot
ach
ieve
d
No
ne
IT infr
astr
uct
ure
an
d
ne
two
rk d
oe
s n
ot
ha
ve
th
e c
ap
acity t
o
with
sta
nd
ba
nd
wid
th
inte
nsiv
e
ap
plic
ation
s.
Im
ple
me
nt a
fu
lly
fun
ctio
na
l B
usin
ess
Inte
llig
en
ce,
Data
W
are
ho
use,
an
d
“Da
sh
boa
rd”
en
viro
nm
en
t
De
velo
p a
nd
im
ple
me
nt
Bu
sin
ess
Inte
llig
en
ce,
Da
ta
Ware
ho
use,
a
nd
“D
ashb
oa
rd”
en
viro
nm
en
t b
ase
d o
n t
he
su
cce
ssfu
l im
ple
me
nta
tio
n
of
a
De
ve
lop a
nd
ob
tain
a
pp
rova
l fo
r B
usin
ess I
nte
llig
ence
,
Da
ta W
are
ho
use,
a
nd
“D
ashb
oard
” e
nviro
nm
en
t
No
t a
ch
ieve
d
No
ne
IT infr
astr
uct
ure
an
d
ne
two
rk d
oe
s n
ot
ha
ve
th
e c
ap
acity to
w
ith
sta
nd
ba
nd
wid
th
inte
nsiv
e
ap
plic
ation
s.
Els
e
ap
plic
ation
s w
ill f
all
ove
r.
31
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
3:
To
en
su
re o
rga
niz
ati
on
al ex
ce
lle
nc
e b
y i
nve
sti
ng
in
wo
rkfo
rce
, s
ys
tem
s a
nd
co
mm
un
itie
s.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r A
nn
ua
l T
arg
et
20
14/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
Co
llab
ora
tive
W
ork
spa
ce
en
viro
nm
en
t.
Im
ple
me
nt B
usi
ness
In
telli
ge
nce
, D
ata
W
are
ho
use
,
and
“Da
shb
oa
rd”
en
viro
nm
en
t.
No
t a
chie
ved
. –
Infr
ast
ruct
ure
nee
ds t
o b
e
up
gra
de
d
No
ne
IT in
fra
str
uct
ure
an
d
ne
two
rk d
oe
s n
ot
have
th
e c
apa
city
to
w
ithsta
nd
ba
nd
wid
th
inte
nsiv
e
ap
plic
atio
ns.
Els
e
ap
plic
atio
ns w
ill f
all
ove
r.
3.4
: A
lig
n t
he
co
rpo
rate
str
uc
ture
to
cate
r fo
r b
us
ine
ss
d
ive
rsif
icati
on
Op
tima
l co
rpora
te
stru
ctu
re o
f N
TI
an
d
its s
ub
sid
iarie
s
Re
vie
w a
nd
im
ple
me
nt
an
o
ptim
al
stru
ctu
re s
o a
s to
cate
r fo
r b
usi
ne
ss
div
ers
ific
atio
n
Be
nch
ma
rk v
ariou
s in
vest
me
nt
corp
ora
te
stru
ctu
res
with
in
pu
blic
se
rvic
e
tra
nsp
ort
atio
n s
ect
or
an
d s
ub
mit
pro
po
sal
for
ap
pro
val b
y B
OD
No
t a
chie
ved
Do
cum
ent
on
pro
po
se
d
op
tima
l corp
ora
te
str
uct
ure
su
bm
itte
d to
B
oard
for
appro
val
La
ck o
f fu
nd
s to
a
pp
oin
t a
con
sulta
nt;
a
nd
th
e e
xerc
ise
will
b
e d
on
e in
tern
ally
by
a T
ask
Te
am
O
bta
in a
ppro
val a
nd
im
ple
me
nt n
ew
co
rpo
rate
str
uct
ure
in
co
nsu
ltatio
n w
ith
all
stake
ho
lde
rs
No
t a
chie
ved
. N
one
Op
tima
l str
uct
ure
will
b
e d
on
e a
t tim
e o
f tu
rnaro
un
d s
trate
gy.
3.5
: D
eve
lop
an
d
imp
lem
en
t a
co
mp
lia
nc
e
str
ate
gy a
nd
re
late
d p
olicie
s f
or
the
Gro
up
of
co
mp
an
ies
Gro
up c
om
plia
nce
w
ith a
ll st
atu
tory
an
d
leg
isla
tive
re
qu
ire
me
nts
Gro
up o
f C
om
pa
nie
s to
co
mp
ly w
ith
Co
mp
an
ies
Act
, P
FM
A,
Kin
g III r
ep
ort
, T
rea
sury
R
eg
ula
tion
s a
nd
oth
er
rele
van
t le
gis
latio
ns
De
velo
pm
ent
an
d
ob
tain
ap
pro
val o
f C
om
plia
nce
str
ate
gy
an
d p
olic
ies
No
t a
chie
ved
No
ap
pro
ved
Co
mp
liance
str
ate
gy
an
d
po
licie
s d
ocu
me
nt
Do
cum
en
t n
ot
de
velo
pe
d b
y C
om
pa
ny
Se
cre
taria
t d
ue t
o
oth
er
co
mm
itme
nts
i.e
. st
an
d in
as
Actin
g C
hie
f E
xecutive
Off
ice
r.
Will
be
co
mp
lete
d
du
rin
g
32
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Str
ate
gic
Go
al
3:
To
en
su
re o
rga
niz
ati
on
al ex
ce
lle
nc
e b
y i
nve
sti
ng
in
wo
rkfo
rce
, s
ys
tem
s a
nd
co
mm
un
itie
s.
Str
ate
gic
Ob
jec
tive
Pe
rfo
rma
nc
e
Ind
icato
r A
nn
ua
l T
arg
et
20
14/2
01
5
Qu
art
erl
y T
arg
ets
A
ch
ieve
me
nts
M
ea
ns
of
Ve
rifi
ca
tio
n/P
ort
foli
o o
f E
vid
en
ce
Re
as
on
fo
r n
ot
Ac
hie
vin
g
Im
ple
me
nt
Co
mp
liance
str
ate
gy
an
d p
olic
ies
No
t a
chie
ved
. N
o c
om
plia
nce
str
ate
gy
an
d p
olic
y d
ocu
me
nts
d
eve
lop
ed a
nd
ava
ilable
Se
rvic
e p
rovi
der
to
be
invi
ted
.
S
ched
ule
co
mp
lian
ce a
ud
its
acr
oss
bu
sin
ess
u
nits
(in li
ais
on
with
In
tern
al A
ud
it)
No
t a
chie
ved
No
ne
Ou
tsta
nd
ing
C
om
plia
nce
str
ate
gy
an
d p
olic
ies.
S
ubm
it co
nso
lida
ted
com
plia
nce
re
port
for
BO
D a
pp
rova
l.
No
t a
chie
ved
No
ne
Ou
tsta
nd
ing
C
om
plia
nce
str
ate
gy
an
d p
olic
ies.
Im
ple
me
nt E
xcla
im
Co
mp
liance
with
L
eg
isla
tion
Su
ite
pro
gra
m
Imp
lem
ent
Exc
laim
C
om
plia
nce
w
ith L
eg
isla
tio
n
Su
ite p
rog
ram
Pre
pa
re c
om
plia
nce
R
isk M
ana
gem
en
t P
lan
s
Ach
ieve
d
Ris
k R
eg
iste
r N
one
S
oft
wa
re
Imp
lem
enta
tion
for
com
plia
nce
with
le
gis
latio
n a
nd
in
tern
al r
eg
ula
tio
ns
an
d p
olic
ies.
No
t a
chie
ved
. S
oft
wa
re
No
n a
vaila
ble
in t
he
m
ark
et
33
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
34|
Corporate Governance Statement
Introduction
Northwest Transport Investments (SOC) Ltd (NTI) is a State Owned Enterprise registered as a private company under the Companies Act and is listed as a Provincial Government Business Enterprise Entity in terms of Schedule 3 (d) of the Public Finance Management Act (PFMA). NTI has two subsidiaries constituting in Northwest Star (SOC) Ltd directly and Atteridgevile Bus Service (SOC) Ltd indirectly. These are collectively named the Group. The Board of Directors of Northwest Transport Investments (SOC) Ltd (Board) acts as the focal point for, and is the custodian of, corporate governance in the group. The Board oversees processes which ensure that each business area and every employee of the Group is responsible for acting in accordance with sound corporate governance principles in their relationships with management, shareholders and other stakeholders. The Board has a formal charter which sets out its role and responsibilities and is satisfied that, for the year under review, it has complied with the terms of its charter. The charter includes the Board's responsibility to:
• Ensure that a code of conduct is developed and observed; • Act as the focal point for, and custodian of, corporate
governance; • Recognise and manage relationships with stakeholders
along sound principles of corporate governance; • Ensure that the company is, and is seen to be, a
responsible corporate citizen; • Require members of the Board to always act in the best
interests of the company and to manage potential conflicts;
• Delegate certain functions to well-structured committees without abdicating its own responsibilities;
• Provide Directors and management with ongoing training and development to meet new legislative, regulatory and best practice requirements;
• Ensure that the Board and its committees are properly evaluated on an annual basis.
Statement of compliance
King Report on Governance for South Africa, 2009
The Board is aware of and managing the companies in accordance the King Report on Governance for South Africa, 2009 (King III) which, requires a maturing approach to governance. Consequently the Group takes into account concerns and issues of its wider stakeholder community. The Board is committed to the highest standards of corporate governance with sound governance principles remaining its top priority.
King III distinguishes between statutory provisions, voluntary principles and recommended practices. Following a formal process to implement the recommendations of King III, the majority of the principles have been applied, as is evidenced in the various sections of this report. A detailed exercise to benchmark the Group's practices against the principles set out in King III was undertaken and the details are set out in the following schedule hereto.
Public Finance Management Act
The Board is the Accounting Authority in terms of the PFMA. NTI is listed as a Provincial Government Business Enterprise Entity in terms of Schedule 3 (d) of the Public Finance Management Act (PFMA). The PFMA focuses on financial management with related outputs and responsibilities. Directors comply with their fiduciary duties as set out in the PFMA. The responsibilities of the Board, in terms of the PFMA, include taking appropriate action to ensure that:
• Economic, efficient, effective and transparent systems of financial and risk management and internal control are in place;
• A system is maintained for properly evaluating all major capital projects prior to making a final decision on each project;
• Appropriate and effective measures are implemented to prevent irregular or fruitless and wasteful expenditure, expenditure not complying with legislation, or losses from criminal conduct;
• All revenues due to the NTI Group are collected;• Available working capital is managed economically and
efficiently;• The objectives and allocation of resources are defined in
an economic, efficient, effective and transparent manner;
For the year under review, no material irregular expenditure was reported.
Companies Act 71 of 2008, as amended
The Companies Act 71 of 2008, as amended (Act) came into effect on 1 May 2011. Accordingly, the company was required to amend certain of its documentation to ensure compliance. The following actions have, among other taken to ensure that the company complies with the Act.
Amendment of memorandum of incorporation
Schedule 5(4) of the Act provides for existing companies to change their articles of association by filing an amended memorandum of incorporation within two years of the Act coming into effect, in order to bring its current articles in line with the Act. Accordingly, the memorandum of incorporation of the statutory entities in the group, were lodged with CIPC.
Financial reporting and going concern
Based on the recommendation of the Audit and Risk Committee, the Board considers and confirms the going concern status of the Group in preparation of the annual financial statements at both the interim reporting period and at year-end. The assumptions underlying the going concern statement include profitability, budgets, forecasts, cash flow and liquidity.
The Board is also responsible for monitoring the preparation, integrity and reliability of the financial statements, accounting policies and the information contained in the integrated report.
The financial statements of NTI are prepared on a going concern basis, taking into consideration the following indicators:
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
35|
Corporate Governance Statement
Financial indicators
The Board is confident that there are no known events or conditions which may give rise to business risks that, individually or collectively, may cast significant doubt about the Group's ability to continue as a going concern. Based on its knowledge of the Group, key processes in operation and specific enquiries, the Board is of the view that there are adequate resources to support it as a going concern for the foreseeable future.
Legislative compliance
The Board has noted its duty to ensure that the company complies with applicable laws and considers adherence to non-binding rules, codes and standards as an imperative part of doing business. The Board has also ensured that compliance is included in the risk register of the Group and it remains a key component of the Group's integral approach to governance, risk and compliance.
Integrity and ethical behavior
The Board is committed to providing effective leadership based on an ethical foundation and believes that responsible leadership is characterised by the ethical values of responsibility, accountability, fairness and transparency.
The Board accepts its responsibility for ensuring that management actively cultivates a culture of ethical conduct and establishes the correct tone at the top in respect of the group values.
The Board of Directors
The Board of Directors of NTI is the highest decision making body within the Group and is the ultimate custodian of corporate governance. The Board aspires to exercise leadership, integrity and judgement in the pursuit of the Group's strategic goals and objectives. The Board Members are appointed by the shareholder.
The Board is responsible for setting the direction and strategy of the Company, as well as overseeing the planning, optimal allocation of resources, the maintenance of ethical business practices, effective risk management and communication with all stakeholders.
In accordance with King III the roles of Chairman and Chief Executive Officer are separated and there is a clear division of responsibilities within the company, ensuring a balance of power and authority. The majority of the Directors of the Board are independent. The ratio of executive to non-executive directors ensures that the Board is sufficiently informed by independent perspectives.
The Board has also taken into account instructive guidelines set out under section 5.1.2.1 of the Department of Public Enterprises' Protocol on Corporate Governance in the Public Sector as well as Principle 2.16 (38) of the King III Report. In this regard the Board has appointed a lead independent non – executive director and as a deputy chairperson to ensure that no one individual has unfettered decision making powers.
Non-executive Directors may accept appointments to other Boards, including industry related organisations, Government entities and charitable organisations, provided that, other commitments they have, do not impact on their ability to discharge their duties to the NTI Group.
Board Charter
The Board Charter and Terms of Reference define the framework, authority and parameters within which the Board operates. For ease of alignment and business interface with the company, the Board invites executive management to its meetings, whilst specifically reserving their right to meet without management's presence when required. The Board is fully committed to maintaining the standards of integrity, accountability and openness required to achieve effective corporate governance.
The Charter and Terms of Reference confirm the Board's accountability, fiduciary duties, and the duty to declare conflict of interest, the constitution of the Board committees and relationship with the NTI Group's employees.
Furthermore, the Charter defines the Board's responsibility to: • Report on integrated sustainability;• Promote a stakeholder-inclusive approach towards the
governance of the Group;• Monitor operational performance and management;• Confirm that the risk management process is accurately
aligned to the strategy and performance objectives of the Group;
• Ensure that all material risks are identified and that appropriate systems and processes are in place to manage the identified risks, in order to ensure that the Company's assets and reputation are protected;
• Provide stakeholders with the assurance that all material risks are properly identified, assessed, mitigated and monitored;
• Determine appropriate policies and processes to ensure the sound corporate governance of the Group.
Remuneration of the Board
The independent, non-executive Directors are remunerated on a basis determined by the shareholder. These Directors are remunerated on the basis of a monthly retainer.
Non-executive Directors are not awarded share options or any benefits other than directors' fees. No service contracts exist between the company and non-executive Directors.
Independence
The independence of non-executive Directors is evaluated on an annual basis by the Human Resources committee against criteria set out in the Act and King III. The strong independent component of the Board ensures that no one individual has unfettered powers of decision and authority.
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
36|
Corporate Governance Statement
Strategy
Management is responsible for developing and presenting the Group strategy to the Board annually. The Board has a duty to ensure that the strategy takes account of associated risks and is aligned with the Group's code of business conduct. The Board agrees the financial, governance and risk objectives and monitors performance against objectives. At each meeting of the Board, management reports on its performance against these objectives.
Risk management
NTI undertook a process of conducting both the strategic risk and operational risk workshops during the period under review, which gave rise to the Company risk registers. Management undertakes to put efforts in integrating results of the risk assessment report into the organisational culture as part of conducting day - to - day business activities. Positive attitude was upheld by NTI's Board and management during the risk assessment assignment, demonstrating NTI's potential to mature to a point where the risk management is embedded into a day - to - day decision making.
Access to information and resources
From time to time, members of the executive committee and management attend Board meetings by invitation. Non-executive Directors also interact regularly with executive management through site visits.
All Directors of the Board are provided with unrestricted access to management and company information. Directors are also provided with the requisite resources to discharge their duties and responsibilities, including the access to external professional advisers, at the expense of the company.
In addition the Group has filed and submitted to the South African Human Resources Commission the manual in terms with the Promotion of Access to Information Act of 2000.
Board meetings
The Board meets on a quarterly basis and additional meetings are held when required. During the year under review, the Board formally had a total of ten (10) special meetings and two (2) ordinary meetings. These meetings are considered necessary for the Board to properly apply itself to achieving its objectives and included meetings held to consider the Group's strategy and operational business plans.
Board committees
In order to assist the Board to discharge its duties and in line with legislative and regulatory compliance requirements, the Board has constituted the following committees:
(1) Audit and Risk Committee;(2) Social and Ethics committee; and(3) Remuneration committee.
Each committee is governed by a formal charter which is reviewed by the Board on an annual basis and applies the
recommendations of King III. The chairman of each committee reports to the Board on its activities at each Board meeting and the minutes are made available to all Directors. On an annual basis, the committees assess whether they have complied with the terms of their charters and report back on compliance to the Board.
The duties and responsibilities of the members of the committees as set out in each charter are in addition to those duties and responsibilities that they have as members of the Board. The deliberations of the committees do not reduce the individual and collective responsibilities of the Board members in regard to their fiduciary duties and responsibilities, and they must continue to exercise due care and judgement in accordance with their legal obligations.
Charters are subject to the provisions of the Act, the memorandum of incorporation of NTI, as well as any other applicable law or regulatory provision.
The Company Secretary
The Company Secretary, Adv KG Mapotse, who was appointed by the Board, ensures that the Directors are aware of all laws relevant to or affecting the Company. The Company Secretary also offers the Directors guidance on their duties and responsibilities and provides secretarial support to the Board and its committees. The Directors have unrestricted access to the Company Secretary.
Internal Audit
Internal controls comprise the methods and procedures implemented by management to achieve the objectives of safeguarding the Group assets, efficient and effective employment of resources, the prevention and detection of errors and fraud, ensuring the accuracy of accounting records and the timely production of reliable financial and operational information.
The Board is responsible for the design, implementation and maintenance of appropriate internal controls in mitigation of the inherent risks of the Company.
The internal audit function, whose independence is ensured through a strong reporting line on the functional level to the Chairman of the Audit and Risk Committee, examines and evaluates the Company's activities, with the objective of assisting executive management and the Board in the effective discharge of their responsibilities. The other major areas of activity are monitoring the system of internal controls as elaborated above, identifying and reporting on error, fraud and discrepancies and monitoring corporate governance.
The Chief Audit Executive reports administratively to the Chief Executive Officer and functionally to the Chairman of the Audit and Risk Committee.
The mandate of the internal audit function is to independently appraise the appropriateness, adequacy and effectiveness of the Group's systems and internal enhancements, reporting the findings to management and the Audit and Risk Committee. The three-year, risk-based audit plan covers major risks emanating from the Group's risk assessment report.
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
37|
Corporate Governance Statement
The audit plan is approved by the Audit and Risk Committee and reviewed annually, based on changes to Group's risk profile, as this ensures that the audit coverage is focused on identified high risk areas.
Nothing has come to the attention of the Board to indicate that there are any material breaches in controls in the year under review.
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
38|
Report of the Audit Commitee
We are pleased to present our report for the financial year ended 31 March 2015
Audit Committee Members and Attendance:
The Audit Committee consist of the members listed below and should meet at least 3 times per annum to consider the annual budget
and financial statements, accounting policies and safeguarding of assets, audit plans and the findings of external and internal
auditors, as per approved charter.
All members of this committee, including the chairperson, are non-executive directors. Both external and internal auditors have
unrestricted access to the chairperson and may meet privately with the committee when required.
During the current year meetings were held and attended as follows:
Name of Member No of Meetings Attended Appointment Date
Mrs. JM Brown (Chairperson) 2 21 August 2012
Ms. ME Dladla 1 11 September 2012
Ms. N Motsatsi - Kalil 1 01 August 2014
Mr T Wolmarans 1 01 August 2014
Audit Committee Responsibility
We report that we have adopted appropriate formal terms of reference in our charter in line with the requirements of Section 51 (1) (a)
of the PFMA and Treasury Regulations 27.1. We further report that we have conducted our affairs in compliance with this charter.
The effectiveness of internal control
The system of internal control applied by the group over financial and risk management is effective, efficient and transparent. In line
with the PFMA and the King lll Report on Corporate Governance requirements, Internal Audit provides the audit committee and
management the identification of corrective actions and suggested enhancements to the controls and processes.
From the reports of the Internal Auditors, the Audit Report on the Annual Financial Statements and the management report of the
Auditor - General South Africa, it was noted that no matters were reported that indicated any material deficiencies in the system of
internal control or any deviations thereof. Accordingly we can report that the system of internal control over financial reporting for the
period under review was efficient and effective.
Evaluation of Financial Statements
We have:
· Reviewed and discussed the Audited Annual Financial Statements to be included in the annual report, with the Auditor-General
South Africa and the Accounting Authority.
· Reviewed the Auditor - General South Africa's management report and managements response thereto;
· Reviewed the group's compliance with legal and regulatory provisions.
· Reviewed significant adjustments resulting from the audit.
We concur with and accept the Auditor–General South Africa's report on the annual Financial Statements, and are of the opinion that
the audited Annual Financial Statements should be accepted read together with the report of the Auditor-General South Africa.
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
39|
Report of the Audit Commitee
Risk Management
The Company conducted strategic and operational risk assessment for the year under review and there is an improvement in
embedding the risks into the culture of the Company.
Internal Audit
We are satisfied that the internal audit function is operating effectively and that it has addressed the identified risks pertinent to the
group in its audits. The Committee is however concerned about the insufficient capacity within Internal Audit and the matter will be
addressed during the next financial year.
Auditor - General South Africa
We have met with the Auditor-General South Africa to ensure that there are no unresolved issues.
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
40|
The Director’s Report
We have pleasure in submitting the Directors' Report and the draft Group Financial Statements for the year ended 31 March 2015. It deals with matters not specifically dealt with elsewhere in the Financial Statements.
1. NATURE OF BUSINESS
1.1 NTI is a State Owned Enterprise registered as a private company under the Companies Act and as a Provincial Government Business Enterprise Entity in terms of Schedule 3 (d) of the Public Finance Management Act (PFMA). The company owns and manages a substantial commercial property portfolio and also operates the administrative head office for Northwest Star (SOC) Ltd (“NWS”) a wholly owned subsidiary.
1.2 NTI's subsidiary, NWS and NWS's subsidiary, Atteridgeville Bus Service (SOC) Ltd (“ABS”), operate transport services in certain areas of the Gauteng Province with limited extensions into other Provinces from four bus operating centres. Service workshops have been established at all operating centres to maintain the bus fleet and to ensure a high level of operating efficiency. NWS and ABS also provide private hires and contract services on request. Weekend services between urban and rural areas are also provided.
2. SHAREHOLDING
2.1 Ordinary Shares
stAll the issued ordinary shares of NTI as at 31 March 2015 were held by the North West Provincial Government (“NWPG”)
2.2 Preference Shares
All the issued preference shares of NTI and NWS are held by the NWPG as follows:
NTI R12,0 millionNWS R28,4 million
The preference shares are held at a dividend rate of 70% of the prime interest rate as quoted by Standard Corporate and Merchant Bank (SCMB), from time to time, which dividends are payable bi-annually on 30 June and 31 December of each year.
Provisions for the payment of preference dividends were as follows:
2015 2014R'000 R'000
Group 2 595 2 427Company 770 721
3. FINANCIAL RESULTS
st3.1 Review of results for the financial year ending 31 March 2015
Company
NTI made a loss of R 9,32 million in comparison with a loss of R48,4 million, in the previous year.
Group
The profit of the group amounts to R 12,52 million in comparison with a loss of R77,83 million of the previous year. The profit of the current year is mainly due an ad hoc subsidy of 15,6 million paid by Provincial Gauteng Department Roads & Transport as a financial burden relief fund after representation by all bus operators complaining about the DoRA amount received for the year in comparison with the rise in the cost structure running the passenger transport business. The annual DoRA increased by 5.06% for the 2014-2015 financial year.
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
41|
The Director’s Report
3.2 Profitability
The contributions made by the various operations to the net profit of the Group for the year are as follows: 2015 2014 R'000 R'000
Passenger Transport Services 21 836 (29 447)Other (9 316) (48 379)
Group Net profit 12 520 (77 826)
4. INTEREST IN SUBSIDIARIES
Details of NTI's interest in its subsidiary are as follows:
Shares held in Subsidiaries Proportion held Loans to Subsidiaries2014
2015 % 2014R R’000
1 100 48 868
Also refer note 4 & 6 of the Financial Statements.
5. DIRECTORS AND OFFICERS
5.1 Appointment of directors
The following persons were directors during the year:
Name Appointment date Resignation date
Mr T P Makhetha (Executive Chairman) 16 August 2012 21 October 2014Mr T Gwabeni (Acting Chairman) 01August 2014Mrs N Motsatsi-Kallil 01 August 2014 25 November 2014Mr I M Motala 21 August 2012Mrs J M Brown 21 August 2012Ms M E Dladla 11 September 2012
Mr T Mosiane 01 August 2014Mr MP Motubatse 01 August 2014MR MJ Wolmarans 01 August 2014
5.2 Remuneration of Directors
2014 2015R R’000
1 NWS 20 034
Name Position Fees Basic Salary Total
T P Makhetha
T Gwebeni
N Motsatsi-Kallil
T Mosiane
MJ Wolmarans
MJ Motubatse
IM Motala
JM Brown
ME Dladla
Total
Exec Chairman
Non-exec Director/Acting Chair
Non-exec Director
Non-exec Director
Non-exec Director
Non-exec Director
Non-exec Director
Non-exec Director
Non-exec Director
R243 562
R 90 265
R 62 608
R151 236
R125 216
R139 360
R229 538
R243 415
R230 895
R1 516 095
R215 990
R215 990
R459 552
R 90 265
R 62 608
R151 236
R125 216
R139 360
R229 538
R243 415
R230 895
R1 732 085
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
42|
The Director’s Report
5.1 Secretary and public officer of the company
Designation Name Date of Residential Address Postalappointment Address
Secretary and G Mapotse 09/01/2014 12 Craven Street PO Box 16719 Public Officer The Reeds Pretoria North
CENTURION 01160157
5.4 Registered Office and Place of Business
NTI's registered office and principal place of business are as follows:
Farm Kleinleeukraal 92 JRMakapanstad RoadZone 2Temba0407
6. FIXED ASSETS
6.1 Operating Assets
The group REPLACED FIXED ASSETS in the amount of R 1,0 million during the year (2014 – R 1,0 million).
6.2 Bus Fleet
6.2.1 As at 31 March 2015, NWS and ABS had a bus fleet of 663 in total (2014 – 665).
6.2.2 Of the above, 16 non-tender compliant buses (2014 – 16), and are kept in the pool to cater for future growth and assist with technical spare buses and/or spares when required.
6.2.3 In terms of the Tender for Contract specifications, as specified by the National Department of Transport (“NDOT”), a bus must either be rebuilt or rehabilitated before its chassis age exceeds fifteen years from date of first registration, to comply for use in a tender. NWS previously preferred the rebuild option as the most viable because a rebuilt bus is recognised as being three years old with a further economic life span of twelve years after being rebuilt. A rehabilitated bus is deemed to be eight years old in accordance with the NDOT specifications. The improvement in technology necessitated a revision of the replacement policy as it is now economically more viable to replace than to rebuild a bus.
7. GOING CONCERN
7.1 The financial statements have been prepared on the basis that the group is and will continue as a going concern, using appropriate accounting policies, supported by reasonable and prudent judgements and estimates.
7.2 The Directors support this basis, and have a reasonable expectation that the group has adequate resources to continue as a going concern in the foreseeable future.
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand Note(s) 2015 2014 2015 2014
Assets
Non-Current Assets
Investment property 2 69 196 000 69 195 000 127 296 000 127 295 000
Property, plant and equipment 3 338 260 096 358 700 955 21 437 910 21 631 606
Investments in subsidiaries 4 - - 1 1
Other financial assets 6 40 128 339 28 448 379 40 128 339 28 448 379
Deferred tax 7 3 856 435 - - -
451 440 870 456 344 334 188 862 250 177 374 986
Current Assets
Inventories 9 17 877 597 16 060 565 - -
Loans to group companies 5 - - 20 034 590 48 867 525
Trade and other receivables 10 32 078 238 26 070 594 11 599 251 7 329 619
Cash and cash equivalents 11 58 957 899 48 531 355 823 093 6 932 868
108 913 734 90 662 514 32 456 934 63 130 012
Total Assets 560 354 604 547 006 848 221 319 184 240 504 998
Equity and Liabilities
Equity
Share capital 12 296 555 282 296 555 282 268 155 282 268 155 282
Reserves 76 966 691 76 415 705 25 698 691 25 147 705
Accumulated loss 37 090 596 27 716 529 (115 027 052) (104 389 257)
410 612 569 400 687 516 178 826 921 188 913 730
Liabilities
Non-Current Liabilities
Retirement benefit obligation 8 18 082 000 19 004 000 18 082 000 19 004 000
Deferred tax 7 - 14 804 658 11 754 594 22 591 560
18 082 000 33 808 658 29 836 594 41 595 560
Current Liabilities
Trade and other payables 15 116 013 563 99 779 235 3 704 320 2 405 804
Provisions 14 6 122 424 5 417 424 6 122 424 5 417 424
Dividend payable 9 524 048 7 314 015 2 828 925 2 172 480
131 660 035 112 510 674 12 655 669 9 995 708
Total Liabilities 149 742 035 146 319 332 42 492 263 51 591 268
Total Equity and Liabilities 560 354 604 547 006 848 221 319 184 240 504 998
43|
Statement of Financial Position as at 31 March 2015
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand Note(s) 2015 2014 2015 2014
Revenue 16 898 724 931 789 366 933 12 929 808 11 926 578
Other income 3 498 113 4 462 157 1 632 665 276 087
Operating expenses (909 095 537) (839 750 414) (36 235 430) (41 871 819)
Operating loss 17 (6 872 493) (45 921 324) (21 672 957) (29 669 154)
Investment revenue 19 1 496 419 2 041 827 968 192 1 128 207
Fair value adjustments 1 000 904 000 1 000 6 204 000
Finance costs 20 (1 316 972) (1 544 880) (210) (51)
Loss before taxation (6 692 046) (44 520 377) (20 703 975) (22 336 998)
Taxation 21 18 661 093 (39 857 840) 10 836 966 (27 293 683)
Profit (loss) for the year 11 969 047 (84 378 217) (9 867 009) (49 630 681)
Other comprehensive income:
Items that will not be reclassified to profitor loss:
Gains and losses on property revaluation (300 000) 5 300 000 (300 000) -
Items that may be reclassified to profit orloss:
Available-for-sale financial assetsadjustments
850 986 1 251 965 850 986 1 251 965
Other comprehensive income for the yearnet of taxation
23 550 986 6 551 965 550 986 1 251 965
Total comprehensive income (loss) forthe year
12 520 033 (77 826 252) (9 316 023) (48 378 716)
44|
Statement of Comprehensive Income
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Fig
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--
--
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(77
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)(7
70
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lan
ce
at
31
Ma
rch
20
15
32
80
0 0
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No
te(s
)1
21
21
22
32
32
3
Sta
tem
ent o
f C
ha
ng
es
in E
quity
48
|N
OR
TH
WE
ST
TR
AN
SP
OR
T IN
VE
ST
ME
NT
S (
SO
C)
LT
D.
(Regis
tratio
n N
um
ber
1975/0
711
14/3
0)
Gro
up
An
nu
al F
ina
nc
ial S
tate
me
nt
for
the
Ye
ar
en
de
d 3
1 M
arc
h 2
01
5
AN
NU
AL R
EP
OR
T 2
01
4/1
5
Group Company
Figures in Rand Note(s) 2015 2014 2015 2014
Cash flows from operating activities
Cash receipts from customers 901 456 147 812 808 296 10 292 841 23 697 204
Cash paid to suppliers and employees (880 966 009) (808 056 524) (36 632 190) (34 068 643)
Cash generated from (used in) operations 24 20 490 138 4 751 772 (26 339 349) (10 371 439)
Interest income 1 415 243 1 930 096 887 016 1 016 476
Dividends received 81 176 111 731 81 176 111 731
Finance costs (1 098 915) (585 665) (210) (51)
Tax paid 25 - (68 312) - -
Net cash from operating activities 20 887 642 6 139 622 (25 371 367) (9 243 283)
Cash flows from investing activities
Purchase of property, plant and equipment 3 (979 440) (1 003 708) - (63 062)
Sale of property, plant and equipment 3 1 950 320 4 128 096 1 371 972 -
Loans to group companies repaid - - 28 832 935 24 206 956
Purchase of financial assets (10 828 974) (10 797 525) (10 828 974) (10 797 525)
Net cash from investing activities (9 858 094) (7 673 137) 19 375 933 13 346 369
Cash flows from financing activities
Finance lease payments (218 057) (6 295 638) - -
Dividends paid 26 (384 947) (360 570) (114 341) (107 100)
Net cash from financing activities (603 004) (6 656 208) (114 341) (107 100)
Total cash movement for the year 10 426 544 (8 189 723) (6 109 775) 3 995 986
Cash at the beginning of the year 48 531 355 56 721 078 6 932 868 2 936 882
Total cash at end of the year 11 58 957 899 48 531 355 823 093 6 932 868
49|
Statement of Cash Flows
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
50|
Accounting Policies
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
1. Presentation of Group Annual Financial Statements
The group annual financial statements have been prepared in accordance with South African Standards of Accounting Practice (GAAP), and the Companies Act 71 of 2008. The group annual financial statements have been prepared on the historical cost basis, except for the measurement of investment properties and certain financial instruments at fair value, and incorporate the principal accounting policies set out below. They are presented in South African Rands.
These accounting policies are consistent with the previous period.
1.1 Consolidation
Basis of consolidation
The consolidated group annual financial statements incorporate the group annual financial statements of the group and all investees which are controlled by the group.
The group has control of an investee when it has power over the investee; it is exposed to or has rights to variable returns from involvement with the investee; and it has the ability to use its power over the investee to affect the amount of the investor's returns.
The results of subsidiaries are included in the consolidated group annual financial statements from the effective date of acquisition to the effective date of disposal.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
1.2 Investment property
Investment property is recognised as an asset when, and only when, it is probable that the future economic benefits that are associated with the investment property will flow to the enterprise, and the cost of the investment property can be measured reliably.
Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.
Fair value
Subsequent to initial measurement investment property is measured at fair value. A gain or loss arising from a change in fair value is included in net profit or loss for the period in which it arises.
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Accounting Policies
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
1.3 Property, plant and equipment
The cost of an item of property, plant and equipment is recognised as an asset when:• it is probable that future economic benefits associated with the item will flow to the company; and• the cost of the item can be measured reliably.
Property, plant and equipment is initially measured at cost.
Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.
Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses except for land and buildings which is carried at revalued amount being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.
Any increase in an asset’s carrying amount, as a result of a revaluation, is recognised to other comprehensive income and accumulated in the revaluation surplus in equity. The increase is recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss.
Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in profit or loss in the current period. The decrease is recognised in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognised in other comprehensive income reduces the amount accumulated in the revaluation surplus in equity.
Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.
Property, plant and equipment is carried at revalued amount, being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.
Any increase in an asset’s carrying amount, as a result of a revaluation, is credited to other comprehensive income and accumulated in the revaluation surplus in equity. The increase is recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss.
Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in profit or loss in the current period. The decrease is debited in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset.
The useful lives of items of property, plant and equipment have been assessed as follows:
Item Useful lifePercentage basis % p.a.• Buildings - freehold : before 01/01/1989 2,00%• Buildings - freehold: after 01/01/1989 5,00%• Ancillary vehicles 20,00%• Office furniture 16,67%• Office equipment 16,67%• Computer: Mainframe 20,00%• Computer: Personal computers 33,33%• Computer: Software (personal computers) 50,00%• Computer: Software (mainframe purchased) 33,33%• Computer: Software (mainframe in-house) 100,00%• Operating equipment 20,00%• Workshop equipment 20,00%
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Accounting Policies
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
1.3 Property, plant and equipment (continued)
Period basis years• New chassis 14• New body 14• Used chassis 14 less age since first registration• Used body 14 less age since first registration• Rebuilt chassis 12Residual values R• Purchase 2002 onwards (new technology) 300 000• Purchased prior to 2001 (old technology) 215 000• Other buses fitted with 407 engines 150 000
The depreciation charge for each period is recognised in profit or loss .
The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.
1.4 Interests in subsidiaries
Company annual financial statements
In the company’s separate annual financial statements, investments in subsidiaries are carried at cost.
1.5 Financial instruments
Classification
The group classifies financial assets and financial liabilities into the following categories:• Held-to-maturity investment• Loans and receivables• Available-for-sale financial assets• Financial liabilities measured at amortised cost
Classification depends on the purpose for which the financial instruments were obtained / incurred and takes place at initial recognition. Classification is re-assessed on an annual basis, except for derivatives and financial assets designated as at fair value through profit or loss, which shall not be classified out of the fair value through profit or loss category.
Initial recognition and measurement
Financial instruments are recognised initially when the group becomes a party to the contractual provisions of the instruments.
The group classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.
Financial instruments are measured initially at fair value, except for equity investments for which a fair value is not determinable, which are measured at cost and are classified as available-for-sale financial assets.
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Accounting Policies
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
1.5 Financial instruments (continued)
Subsequent measurement
Loans and receivables are subsequently measured at amortised cost, using the effective interest method, less accumulated impairment losses.
Held-to-maturity investments are subsequently measured at amortised cost, using the effective interest method, less accumulated impairment losses.
Available-for-sale financial assets are subsequently measured at fair value. This excludes equity investments for which a fair value is not determinable, which are measured at cost less accumulated impairment losses.
Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in equity until the asset is disposed of or determined to be impaired. Interest on available-for-sale financial assets calculated using the effective interest method is recognised in profit or loss as part of other income. Dividends received on available for-sale equity instruments are recognised in profit or loss as part of investment income when the group's right to receive payment is established.
Financial liabilities at amortised cost are subsequently measured at amortised cost, using the effective interest method.
Derecognition
Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the group has transferred substantially all risks and rewards of ownership.
Impairment of financial assets
At each reporting date the group assesses all financial assets, other than those at fair value through profit or loss, to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired.
In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered an indicator of impairment. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity as a reclassification adjustment to other comprehensive income and recognised in profit or loss.
Impairment losses are recognised in profit or loss.
Impairment losses are reversed when an increase in the financial asset's recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the financial asset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had the impairment not been recognised.
Reversals of impairment losses are recognised in profit or loss except for equity investments classified as available-for-sale.
Loans to (from) group companies
These include loans to and from subsidiaries, and are recognised initially at fair value plus direct transaction costs.
Loans to group companies are classified as loans and receivables.
Loans from group companies are classified as financial liabilities measured at amortised cost.
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Accounting Policies
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
1.5 Financial instruments (continued)
Trade and other receivables
Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired.The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows.
Trade and other receivables are classified as loans and receivables.
Trade and other payables
Trade payables are initially measured at fair value and are subsequently measured at amortized cost using the efective interest rate method.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.
Bank overdraft and borrowings
Bank overdrafts and borrowings are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the group’s accounting policy for borrowing costs.
Held to maturity
These financial assets are initially measured at fair value plus direct transaction costs.
Financial assets that the group has the positive intention and ability to hold to maturity are classified as held to maturity.
1.6 Tax
Current tax assets and liabilities
Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset.
Current tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
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Accounting Policies
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
1.6 Tax (continued)
Deferred tax assets and liabilities
A deferred tax liability is recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. A deferred tax asset is not recognised when it arises from the initial recognition of an asset or liability in a transaction at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
A deferred tax asset is recognised for the carry forward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Tax expenses
Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period.
1.7 Leases
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.
Finance leases – lessee
Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease.
The lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate on the remaining balance of the liability.
Operating leases – lessee
Operating lease payments are recognised as an expense in the period in which it was incurred.
1.8 Inventories
Inventories are measured at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business.
The cost of inventories is assigned using the weighted average cost formula. The same cost formula is used for all inventories having a similar nature and use to the entity.
When inventories are issued, the carrying amount of those inventories are recognised as expenses. The amount of any write-down of inventories to net realisable value and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.
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Accounting Policies
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
1.9 Impairment of assets
The group assesses at each end of the reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the group estimates the recoverable amount of the asset.
If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined.
The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use.
If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss.
An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease.
An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets other than goodwill may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated.
The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.
A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other than goodwill is recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset is treated as a revaluation increase.
1.10 Share capital and equity
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Ordinary shares are classified as equity. Mandatorily redeemable preference shares are classified as liabilities.
1.11 Employee benefits
Short-term employee benefits
The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.
The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.
The expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.
Defined contribution plans
Payments to defined contribution retirement benefit plans are charged as an expense as they fall due.
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Accounting Policies
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
1.11 Employee benefits (continued)
Defined benefit plans
For defined benefit plans the cost of providing the benefits is determined using the projected unit credit method.
Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan.
Consideration is given to any event that could impact the funds up to the end of the reporting period where the interim valuation is performed at an earlier date.
Actuarial gains and losses are recognised in the year in which they arise, in other comprehensive income.
The amount recognised in the statement of financial position represents the present value of the defined benefit obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past service costs.
1.12 Provisions and contingencies
Provisions are recognised when:• the group has a present obligation as a result of a past event;• it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and• a reliable estimate can be made of the obligation.
The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.
Provisions are not recognised for future operating losses.
Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 28.
1.13 Revenue
Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates, and value added tax.
1.14 Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred.
1.15 Irregular expenditure
Irregular expenditure as defined in section 1 of the Public Finance Management Act (Act 1 of 1999) is expenditure incurred in conravention of, or that is not in accordance with a requirement of any applicable legislation, including:(a) this act (PFMA), or(b) the State Tenter Board Act (Act No 86 of 1968), or any regulations made in terms of the act, or(c) any provincial legislation providing for procurement procedures in that provincial government.
All expenditure relating to irregular expenditure is recognised as an expense in the statement of financial performance in the year that the expense is incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted foras revenue in the statement of financial performance.
1.16 Fruitless and wasteful expenditure
Fruitless and wasteful expenditure means expenditure which was made in fain and would have been avoided, had reasonable care been exercised.
All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and when recovered, it is subsequently accounted for as revenue in the statement of financial performance.
Group Company
Figures in Rand 2015 2014 2015 2014
2. Investment property
Group 2015 2014
Cost /Valuation
Accumulateddepreciation
Carrying value Cost /Valuation
Accumulateddepreciation
Carrying value
Investment property 69 196 000 - 69 196 000 69 195 000 - 69 195 000
Company 2015 2014
Cost /Valuation
Accumulateddepreciation
Carrying value Cost /Valuation
Accumulateddepreciation
Carrying value
Investment property 127 296 000 - 127 296 000 127 295 000 - 127 295 000
Reconciliation of investment property - Group - 2015
Openingbalance
Fair valueadjustments
Total
Investment property 69 195 000 1 000 69 196 000
Reconciliation of investment property - Group - 2014
Openingbalance
Fair valueadjustments
Total
Investment property 68 291 000 904 000 69 195 000
Reconciliation of investment property - Company - 2015
Openingbalance
Fair valueadjustments
Total
Investment property 127 295 000 1 000 127 296 000
Reconciliation of investment property - Company - 2014
Openingbalance
Disposals Fair valueadjustments
Total
Investment property 129 091 000 (8 000 000) 6 204 000 127 295 000
A register containing the information required by Regulation 25(3) of the Companies Regulations, 201 1 is available forinspection at the registered office of the company.
Details of valuation
The effective date of the revaluations was 31 March 2014. Revaluations were performed by an independent valuer, MrFrederick Stephanus Johannes Botha, an independant professional associated valuer , registered (No 5007) in terms ofsection 20(2)(a) of the Property Valuers Profession Act (Act 47 of 2000). Mr Botha is not connected to the company andhave recent experience in the location and category of the investment property being valued.
The valuation was based on open market value for existing use.
The directors deemed these values to be fair as at year-end.
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Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
3. Property, plant and equipment
Group 2015 2014
Cost /Valuation
Accumulateddepreciation
Carrying value Cost /Valuation
Accumulateddepreciation
Carrying value
Land and Buildings 80 252 941 (934 836) 79 318 105 80 577 622 (952 309) 79 625 313Buses 543 703 934 (290 444 614) 253 259 320 545 662 604 (273 776 845) 271 885 759Motor vehicles 12 414 794 (8 886 254) 3 528 540 12 833 378 (7 692 251) 5 141 127Office equipment 8 280 225 (6 980 382) 1 299 843 8 217 222 (6 829 260) 1 387 962Operating equipment 830 722 (432 000) 398 722 526 774 (464 177) 62 597Workshop equipment 4 414 345 (3 958 779) 455 566 4 649 810 (4 051 613) 598 197
Total 649 896 961 (311 636 865) 338 260 096 652 467 410 (293 766 455) 358 700 955
Company 2015 2014
Cost /Valuation
Accumulateddepreciation
Carrying value Cost /Valuation
Accumulateddepreciation
Carrying value
Land and buildings 21 200 000 - 21 200 000 21 500 000 - 21 500 000Office equipment 1 372 686 (1 262 378) 110 308 1 372 686 (1 311 255) 61 431Operating equipment 1 423 930 (1 296 328) 127 602 1 423 930 (1 353 755) 70 175
Total 23 996 616 (2 558 706) 21 437 910 24 296 616 (2 665 010) 21 631 606
Reconciliation of property, plant and equipment - Group - 2015
Openingbalance
Additions Disposals Transfers Revaluations Depreciation Total
Land and Buildings 79 625 313 - (489) - (300 000) (6 719) 79 318 105Buses 271 885 759 - (429 517) (46 094) - (18 150 828) 253 259 320Motor vehicles 5 141 127 238 151 (114 243) 46 094 - (1 782 589) 3 528 540Office equipment 1 387 962 365 088 (1 291) - - (451 916) 1 299 843Operating equipment 62 597 376 201 (48) - - (40 028) 398 722Workshop equipment 598 197 - (137) - - (142 494) 455 566
358 700 955 979 440 (545 725) - (300 000) (20 574 574) 338 260 096
Reconciliation of property, plant and equipment - Group - 2014
Openingbalance
Additions Disposals Revaluations Depreciation Total
Land and Buildings 82 340 592 - (8 003 388) 5 300 000 (11 891) 79 625 313Buses 292 367 115 - (2 221 251) - (18 260 105) 271 885 759Motor vehicles 7 304 226 110 900 (122 761) - (2 151 238) 5 141 127Office equipment 1 756 707 625 411 (1 596) - (992 560) 1 387 962Operating equipment 3 893 258 - (2 471 741) - (1 358 920) 62 597Workshop equipment 644 829 267 397 (1 208) - (312 821) 598 197
388 306 727 1 003 708 (12 821 945) 5 300 000 (23 087 535) 358 700 955
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Notes to the Group Annual Financial Statement
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
Reconciliation of property, plant and equipment - Company - 2015
Openingbalance
Revaluations Depreciation Total
Land and buildings 21 500 000 (300 000) - 21 200 000Office equipment 61 431 - 48 877 110 308Workshop equipment 70 175 - 57 427 127 602
21 631 606 (300 000) 106 304 21 437 910
Reconciliation of property, plant and equipment - Company - 2014
Openingbalance
Additions Disposals Depreciation Total
Land and buildings 21 500 000 - - - 21 500 000Office equipment 119 058 63 062 (49) (120 640) 61 431Workshop equipment 172 405 - - (102 230) 70 175
21 791 463 63 062 (49) (222 870) 21 631 606
Assets subject to finance lease (Net carrying amount)
Buses - 28 198 919 - -
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Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Revaluations
The effective date of the revaluation of land and buildings was 31 March 2015. Revaluations were performed by independent valuer, Mr Frederick Stephanus Johannes Botha, an independent professional associated valuer, registered (No 5007) i terms of the property valuers profession act (Act 47 of 2000). Mr Botha is not connected to the group and have recent experience in the location and category of the property valued.
Land and buildings are re-valued independently every year.
The valuation was based on open market value for existing use.
The directors deemed these values to be fair at year-end.
The amount of the revaluation surplus and movements are disclosed in the statement of changes in equity.
The revaluation surplus related to a property will only become available for distribution to the shareholder when the property is disposed.:
The carrying value of the revalued assets under the cost model would have been:
Land and buildings 19 006 191 19 006 191 2 552 585 2 552 585
A register containing the information required by Regulation 25(3) of the Companies Regulations, 2011 is available for inspection at the registered office of the company.
Group Company
Figures in Rand 2015 2014 2015 2014
4. Interests in subsidiaries
The following table lists the entities which are controlled by the group, either directly or indirectly through subsidiaries.
Group
Name of company Held by % holding2015
% holding2014
Atteridgeville Bus Service (SOC) Ltd Northwest Star(SOC) Ltd
%100,00 %100,00
The following table lists the entities which are controlled directly by the company, and the carrying amounts of theinvestments in the company's separate financial statements.
Company
Name of company % holding2015
% holding2014
Carryingamount 2015
Carryingamount 2014
Northwest Star (SOC) Ltd %100,00 %100,00 1 1
5. Loans to (from) group companies
Subsidiaries
Northwest Star (Pty) Ltd - - 20 034 590 48 867 525
The loan is unsecured and interest free with no fixed repayment terms
6. Other financial assets
Available-for-saleListed shares 7 051 277 6 200 291 7 051 277 6 200 291
Held to maturityDeposits at financial institutions 33 077 062 22 248 088 33 077 062 22 248 088
Total other financial assets 40 128 339 28 448 379 40 128 339 28 448 379
Non-current assetsAvailable-for-sale 7 051 277 6 200 291 7 051 277 6 200 291Held to maturity 33 077 062 22 248 088 33 077 062 22 248 088
40 128 339 28 448 379 40 128 339 28 448 379
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Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
7. Deferred tax
The deferred tax assets and the deferred tax liability relate to income tax in the same jurisdiction, and the law allows netsettlement. Therefore, they have been offset in the statement of financial position as follows:
Deferred tax 2 558 705 (16 002 828) (11 754 594) (22 591 560)Deferred tax asset 1 297 730 1 198 170 - -
Total net deferred tax asset (liability) 3 856 435 (14 804 658) (11 754 594) (22 591 560)
Reconciliation of deferred tax asset / (liability)
At beginning of year (14 804 658) 24 984 870 (22 591 560) 4 702 123Increases (decrease) in tax loss available forset off against future taxable income - grossof valuation allowance
- (50 922 697) - (31 022 227)
Taxable / (deductible) temporary differencemovement on tangible fixed assets
17 121 229 6 169 673 9 225 532 509 421
Taxable / (deductible) temporary differenceon lised investment
(238 277) (350 550) (238 277) (350 550)
Taxable / (deductible) temporary differenceon health care benefits
(258 160) (249 480) (258 160) (249 480)
Taxable / (deductible) temporary differenceon leave pay provision
1 758 741 2 358 668 16 939 199 369
Taxable/(deductable) temporary differenceson provision for rates and taxes
1 714 279 - 1 714 279 -
Taxable/(deductable temporary difference onfinance lease liability
(1 494 178) (3 378 770) - -
Taxable/(deductable) temporary differenceson self insurance fund
152 181 254 139 - -
Taxable/(deductable) temporary differenceson income received in advance
1 083 469 4 948 - -
Taxable/(deductable) temporary differenceson accrued expenses
(614 800) 2 515 282 346 671 -
Taxable/(deductabe temporary differenceson prepayments
(566 831) 17 251 - -
Taxable/(deductable temporary differenceson other receivables
3 440 3 792 008 29 982 3 619 784
3 856 435 (14 804 658) (11 754 594) (22 591 560)
Unrecognised deferred tax asset
Unused tax losses not recognised asdeferred tax assets.
196 969 338 196 105 507 163 176 781 110 241 327
8. Retirement benefits
62|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Post employment health liability
The group currently renders defined benefits post-employment health care benefits to 51 (2014 - 55) retired/disabled exemployees. This benefit is not available to current employees. All the medical schemes to which the group contributes have favourable operating and net ratios
The actuarial valuation determined that the post-employment health plan was in a sound financial position.
Group Company
Figures in Rand 2015 2014 2015 2014
8. Retirement benefits (continued)
Carrying value
Present value of the defined benefitobligation-partially or wholly funded
(18 082 000) (19 004 000) (18 082 000) (19 004 000)
Movements for the year
Opening balance 19 004 000 19 895 000 19 004 000 19 895 000Net expense recognised in profit or loss (922 000) (891 000) (922 000) (891 000)
18 082 000 19 004 000 18 082 000 19 004 000
Net expense recognised in profit or loss
Actuarial service cost provision 484 000 337 000 484 000 337 000Deficit/(surplus) due to change in financialassumptions
577 000 (1 802 000) 577 000 (1 802 000)
Deficit due to actual health care cost inflation 51 000 574 000 51 000 574 000Deficit due to actual demographic profile (1 851 000) 157 000 (1 851 000) 157 000Deficit/(surplus) due to members changingscheme plans
(183 000) (157 000) (183 000) (157 000)
(922 000) (891 000) (922 000) (891 000)
Key assumptions used
Assumptions used by NGM consultants and actuaries on last valuation on 31 March 2015.
Consumer price inflation %6,29 %6,81 %6,29 %6,81Health care cost inflation %7,79 %8,31 %7,79 %8,31Discount rate %8,13 %8,96 %8,13 %8,96Real discount rate %0,32 %0,60 %0,32 %0,60
Other assumptions:Spouse age gap Actual age gap Actual age gapChild dependant cease age 21 years 21 yearsDiscounted mean liability 11.9 years 11.9 years
Defined contribution plan
It is the policy of the group to provide retirement benefits to all its employees. A number of defined contribution funds, all ofwhich are subject to the Pensions Fund Act exist for this purpose.
The group is under no obligation to cover any unfunded benefits.
The total group contribution to such schemes 24 563 833 22 922 366 1 088 418 920 037
9. Inventories
Stationery and other 376 494 308 061 - -Fuel and lubricants 6 827 504 8 178 468 - -Maintenance stock 10 673 599 7 574 036 - -
17 877 597 16 060 565 - -
63|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
10. Trade and other receivables
Trade receivables 10 775 926 6 259 630 10 775 926 6 259 630Prepayments 6 265 685 4 241 290 - -Deposits 1 695 470 1 753 541 649 115 895 779Other receivables 13 068 974 13 609 399 174 210 174 210Subsidy debtors 272 183 206 734 - -
32 078 238 26 070 594 11 599 251 7 329 619
Age analysisCurrent 11 349 352 8 978 665 1 097 916 1 059 96730 days 904 590 877 318 279 999 254 28860 days 664 301 555 928 279 717 277 27090 days+ 19 159 995 15 658 683 9 941 619 5 738 094
32 078 238 26 070 594 11 599 251 7 329 619
Trade and other receivables impaired
As of 31 March 2015, trade and other receivables of R 18 073 560 - (2014: R18 199 952) were impaired and provided for.The provision is deducted in the above analysis.
11. Cash and cash equivalents
Cash and cash equivalents consist of:
Cash on hand 1 556 790 2 201 894 4 000 4 000Bank balances 57 401 109 46 329 461 819 093 6 928 868
58 957 899 48 531 355 823 093 6 932 868
12. Share capital
Authorised208 000 000 Ordinary shares of R 0,01 each - 20 800 000 - 20 800 000
IssuedOrdinary shares 20 800 000 20 800 000 20 800 000 20 800 000Redeemable preference shares 40 400 000 40 400 000 12 000 000 12 000 000Share premium 235 355 282 235 355 282 235 355 282 235 355 282
296 555 282 296 555 282 268 155 282 268 155 282
Redeemable preference sharesPreference shares of R 0,01 each 40 40 12 12Share premium 40 399 960 40 399 960 11 999 988 11 999 988
40 400 000 40 400 000 12 000 000 12 000 000
The group issued 5 050 'A' cumulative redeemable preference shares at a nominal value of R 0.01 in August 1988 andFebruary 1991. The first redemption took place in 1995-1996. The remaining 4 040 shares carry a dividend equal to 70% ofthe prime lending rate. Refer paragraph 2.2 of the directors' report.
64|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
13. Finance lease obligation
Minimum lease payments due - within one year - 5 553 233 - -
- 5 553 233 - -less: future finance charges - (216 884) - -
Present value of minimum leasepayments
- 5 336 349 - -
Present value of minimum leasepayments due - within one year - 5 336 349 - -
14. Provisions
Reconciliation of provisions - Group - 2015
Openingbalance
Additions Total
Rates and taxes 5 417 424 705 000 6 122 424
Reconciliation of provisions - Group - 2014
Openingbalance
Additions Total
Rates and taxes 4 873 053 544 371 5 417 424
Reconciliation of provisions - Company - 2015
Openingbalance
Additions Total
Rates and taxes 5 417 424 705 000 6 122 424
Reconciliation of provisions - Company - 2014
Openingbalance
Additions Total
Rates and taxes 4 873 053 544 371 5 417 424
The group made provision for rates and taxes on five properties owned by NTI (SOC) Ltd. The amount of the provision isbased on that paid for similar properties and is expected to be paid when the proclamation of the properties are finalised.
15. Trade and other payables
Trade payables 35 398 693 23 228 574 581 421 599 712Self insurance fund 4 714 340 4 170 837 - -Current portion of borrowings - 5 336 349 - -Accrued leave pay 49 617 178 43 335 958 2 268 983 2 208 484Other payables 26 283 352 23 707 517 853 916 (402 392)
116 013 563 99 779 235 3 704 320 2 405 804
65|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
16. Revenue
Worker ticket cash and subsidies 853 331 327 747 410 878 - -Scholar ticket cash 11 396 888 10 496 687 - -Private hire revenue 26 307 655 24 430 685 - -Rental Income 7 689 061 7 028 683 12 929 808 11 926 578
898 724 931 789 366 933 12 929 808 11 926 578
17. Operating loss
Operating loss for the year is stated after accounting for the following:
Income from subsidiariesOperating rent received for investmentproperties
- - 5 240 747 2 448 947
Remuneration, other than to employees,for:Auditors remuneration 4 622 810 3 794 927 1 017 071 2 690 477Directors remuneration 1 732 085 1 608 381 1 732 085 1 608 381
6 354 895 5 403 308 2 749 156 4 298 858
Operating lease chargesPremises
Contractual amounts 733 705 685 705 - -Equipment
Contractual amounts 4 496 871 4 480 938 - -
5 230 576 5 166 643 - -
Profit/(Loss) on sale of Property, plant andequipment
1 404 595 (8 693 849) 1 371 972 (8 000 049)
Depreciation on property, plant andequipment
20 574 574 23 087 527 (106 304) 222 870
Employee costs 389 142 429 358 874 212 20 366 547 21 513 425
18. Employee cost
Basic 280 702 456 257 590 916 15 417 856 16 371 740Bonus 34 725 320 32 539 522 1 044 498 1 582 399Medical aid - company contributions 14 559 770 13 814 529 692 690 716 537UIF 2 528 465 2 308 016 55 642 58 951WCA 6 223 704 5 695 811 201 035 204 482Insured benefits 19 330 312 19 568 300 714 007 773 521Uniforms 3 908 518 3 306 621 - 3 964Other company contributions 348 421 246 913 770 576Post-employment benefits - Pension -Defined contribution plan
24 563 832 22 922 366 1 088 418 920 037
Post-employment health care - contributions 818 271 881 218 818 271 881 218Post-employment health care liability -Actuarial gains/losses
1 433 360 - 333 360 -
389 142 429 358 874 212 20 366 547 21 513 425
66|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
18. Employee cost (continued)
Average number of persons employed during the year was:
Full time employees 1 893 1 927 18 39
19. Investment revenue
Dividend revenueListed financial assets - Local 81 176 111 731 81 176 111 731
Interest revenueBank 1 415 243 1 930 096 887 016 1 016 476
1 496 419 2 041 827 968 192 1 128 207
20. Finance costs
Finance leases 218 057 959 215 - -Bank 1 098 915 168 287 210 51Late payment of tax - 417 378 - -
1 316 972 1 544 880 210 51
67|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
21. Taxation
Major components of the tax (income) expense
CurrentLocal income tax - recognised in current taxfor prior periods
- 68 312 - -
DeferredDeferred tax (18 661 093) 39 789 528 (10 836 966) 27 293 683
(18 661 093) 39 857 840 (10 836 966) 27 293 683
Reconciliation of the tax expense
Reconciliation between accounting profit and tax expense.
Accounting loss (6 692 046) (44 520 377) (20 703 975) (22 336 998)
Tax at the applicable tax rate of 28% (2014:28%)
(1 873 773) (12 465 706) (5 797 113) (6 254 359)
Tax effect of adjustments on taxableincomeNon-taxable amounts credited to the incomestatement
(3 157 419) (2 823 837) (406 881) (31 285)
Special allowances not claimed in theincome tatement
(9 991 057) (11 888 823) (1 246 354) (1 268 998)
Non-deductable amounts debited to theincome statement
9 865 234 16 140 826 448 075 3 323 490
Recoupment of prior year allowances 2 451 564 2 233 047 1 206 595 1 020 927Amounts not credited to the incomestatement
1 472 569 123 340 384 152 (1 737 120)
Tax on fair value adjustment (280) (259 203) (280) -Assessed loss 1 233 162 8 940 356 5 411 806 4 947 345
- - - -
Assessed lossAssessed loss per assessment 198 969 594 (14 718 906) 113 105 414 (15 357 345)Taxable loss/(income) for the year 4 404 151 31 821 725 19 327 879 17 669 091Taken into account in determining deferredtax
- 181 866 775 - 110 793 668
203 373 745 198 969 594 132 433 293 113 105 414
Deductible temporary differences, unusedtax losses and unused tax credits for whichno deferred tax asset has been recognised.
196 969 338 196 105 507 19 327 879 110 241 327
No provision has been made for 2015 tax as the group has no taxable income. The estimated tax loss available for set offagainst future taxable income is R 18 073 560 (2014: R 196 105 507).
22. Auditors' remuneration
Fees 4 622 809 3 794 927 1 017 071 2 690 477
68|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
23. Other comprehensive income
Components of other comprehensive income - Group - 2015
Gross Tax Net
Items that will not be reclassified to profit or loss
Movements on revaluation Gains (losses) on property revaluation (300 000) - (300 000)
Items that may be reclassified to profit or loss
Available-for-sale financial assets adjustments Gains and losses arising during the year 850 986 - 850 986
Total 550 986 - 550 986
Components of other comprehensive income - Group - 2014
Gross Tax Net
Items that will not be reclassified to profit or loss
Movements on revaluation Gains (losses) on property revaluation 5 300 000 - 5 300 000
Items that may be reclassified to profit or loss
Available-for-sale financial assets adjustments Gains and losses arising during the year 1 251 965 - 1 251 965
Total 6 551 965 - 6 551 965
Components of other comprehensive income - Company - 2015
Gross Tax Net
Items that will not be reclassified to profit or loss
Movements on revaluation Gains (losses) on property revaluation (300 000) - (300 000)
Items that may be reclassified to profit or loss
Available-for-sale financial assets adjustments Gains and losses arising during the year 850 986 - 850 986
Total 550 986 - 550 986
69|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
23. Other comprehensive income (continued)
Components of other comprehensive income - Company - 2014
Gross Tax Net
Items that may be reclassified to profit or loss
Available-for-sale financial assets adjustments Gains and losses arising during the year 1 251 965 - 1 251 965
24. Cash generated from (used in) operations
Loss before taxation (6 692 046) (44 520 377) (20 703 975) (22 336 998)Adjustments for:Depreciation and amortisation 20 574 574 23 087 527 (106 304) 222 870(Profit) loss on sale of assets (1 404 595) 8 693 849 (1 371 972) 8 000 049Dividends received (81 176) (111 731) (81 176) (111 731)Interest received - investment (1 415 243) (1 930 096) (887 016) (1 016 476)Finance costs 1 316 972 1 544 880 210 51Fair value adjustments (1 000) (904 000) (1 000) (6 204 000)Movements in retirement benefit assets andliabilities
(922 000) (891 000) (922 000) (891 000)
Movements in provisions 705 000 544 371 705 000 544 371Changes in working capital:Inventories (1 817 032) 1 725 100 - -Trade and other receivables (6 007 644) 17 259 269 (4 269 632) 11 494 539Trade and other payables 16 234 328 253 980 1 298 516 (73 114)
20 490 138 4 751 772 (26 339 349) (10 371 439)
25. Tax paid
Balance at beginning of the year - - - -Current tax for the year recognised in profitor loss
- (68 312) - -
Balance at end of the year - - - -
- (68 312) - -
26. Dividends paid
Balance at beginning of the year (7 314 015) (5 247 154) (2 172 480) (1 558 561)Dividends (2 594 980) (2 427 431) (770 786) (721 019)Balance at end of the year 9 524 048 7 314 015 2 828 925 2 172 480
(384 947) (360 570) (114 341) (107 100)
27. Commitments
Operating leases – as lessee (expense)
Minimum lease payments due - within one year 7 832 315 1 187 372 - - - in second to fifth year inclusive 28 278 020 22 200 092 - - - later than five years - - - -
36 110 335 23 387 464 - -
70|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
28. Contingencies
29. Related parties
`
RelationshipsSubsidiaries Refer to note 4Shareholder with significant influence North West Provincial GovernmentContract principal Gauteng Department of Roads, Works and TransportMembers of key management Refer note 30: Prescribed officers
Related party balances
Loan accounts - Owing (to) by relatedpartiesNorthwest Star (SOC) Ltd - - 20 034 590 48 867 525
Amounts included in Trade receivable(Trade Payable) regarding related partiesGauteng department of roads, works andtransport
272 182 206 734 - -
Related party transactions
Purchases from (sales to) related partiesGauteng department of roads, works andtransport - contract revenue
(570 339 964) (458 793 364) - -
Rent paid to (received from) relatedpartiesNorthwest Star (SOC) Ltd - - (5 240 747) (4 897 895)Gauteng Provincial Government (3 309 096) (3 092 613) (3 309 096) (3 092 613)
71|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
The are currently 1settled labour dispute and 1 general litigation case. It has been conservatively estimated that should all cases be decided in favour of the claimants, the cost could not exceed R 0.98 million (2014 - 6 disputes, R 9.53 million).
Group Company
Figures in Rand 2015 2014 2015 2014
30. Directors' and prescribed officer's emoluments
Non-executive
2015
Directors' fees Committeesfees
Other fees Total
Makhetha TP (Mr) - Executive chairman - - 459 552 459 552Motala IM (Mr) 135 398 94 140 - 229 538Brown JM (Mrs) 135 398 108 017 - 243 415Dladla ME (Ms) 135 398 95 497 - 230 895Gwabeni TB (Mr) 90 265 - - 90 265Wolmerans MJ (Mr) 90 265 34 951 - 125 216Motubatse MP (Mr) 90 265 49 095 - 139 360Mosiane TG (Mr) 90 265 60 971 - 151 236Kalil NV (Ms) 45 133 17 475 - 62 608
812 387 460 146 459 552 1 732 085
2014
Directors' fees Other fees TotalMakhetha TP (Mr) - Executive chairman 408 900 461 100 870 000Motala IM (Mr) 233 488 - 233 488Brown JM (Mrs) 243 415 - 243 415Dladla ME (Ms) 261 478 - 261 478
1 147 281 461 100 1 608 381
Prescribed officers
2015
Emoluments Other benefits* Pension Total
Rantao RA 1 774 334 119 067 - 1 893 401Van Vuuren AJ 225 075 - - 225 075Van Der Merwe DHA 1 425 571 161 321 121 839 1 708 731Malutshana B 211 966 11 078 10 507 233 551Ntlamele TE 1 845 199 59 958 - 1 905 157Van Zyl L 1 574 111 66 188 46 138 1 686 437Nieuwoudt JM 1 379 354 21 626 28 735 1 429 715De Beer LN 1 181 872 128 103 94 901 1 404 876Komane AR 1 702 751 155 116 123 155 1 981 022
11 320 233 722 457 425 275 12 467 965
2014
Emoluments Other benefits* Pension Total
Malutshana B 1 347 765 231 491 122 159 1 701 415Rantao RA 1 442 508 124 803 - 1 567 311Ntlamele TE 1 238 649 264 406 - 1 503 055Van Zyl L 965 940 337 570 84 295 1 387 805Van Vuuren AJ 1 070 475 359 380 - 1 429 855
72|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Group Company
Figures in Rand 2015 2014 2015 2014
30. Directors' and prescribed officer's emoluments (continued)
Van Der Merwe DHA 1 237 185 173 492 109 105 1 519 782Nieuwoudt JM 1 088 445 253 872 165 189 1 507 506De Beer LN 971 262 84 524 85 460 1 141 246
9 362 229 1 829 538 566 208 11 757 975
The correction of the error had no effect on the provisions for current or deferred income tax.
The restatement of opening balances are disclosed in the statement of changes in equity .
The correction of the error results in adjustments as follows:
Statement of Financial PositionRevaluation reserve - - - 18 947 414Opening retained earnings - - - (18 947 414)
73|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
31. Prior year error
The revaluations in prior periods of company property, plant and equipment carried at fair value were not credited to other comprehensive income and accumulated in equity as a revaluation reserve. Revaluation amounts were included in profit or loss as fair value adjustments in the periods in which it arose. This misapplication error was noted after approval of the annual financial statements for the prior year and corrected in the current financial year.
32. Risk management
Financial risk management
Liquidity risk
The group’s risk to liquidity is a result of the funds available to cover future commitments. The group manages liquidity risk through an ongoing review of future commitments and credit facilities.
Interest rate risk
As the group has no significant interest-bearing assets, the group’s income and operating cash flows are substantially independent of changes in market interest rates.
The group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the group to cash flow interest rate risk.
Credit risk
Credit risk is managed on a group basis.
Credit risk consists mainly of cash deposits, cash equivalents, and trade debtors. The company only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.
Foreign exchange risk
The group has no foreign currency exposure.
The group reviews its foreign currency exposure, including commitments on an ongoing basis. The company expects its foreign exchange contracts to hedge foreign exchange exposure.
Emoluments Other benefits* Pension Total
33. Going concern
The group annual financial statements have been prepared on the basis of accounting policies applicable to a goingconcern. This basis presumes that funds will be available to finance future operations and that the realisation of assets andsettlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.
34. Irregular expenditure
Opening balance as at 1 April 2014 140 638 058 140 638 058 - -Current period - Irregular expenditure - - - -Less: Write-off approved by accountingauthority
- - - -
Less: Transferred to receivables for recovery(not condoned)
- - - -
140 638 058 140 638 058 - -
The PFMA requires the entity to implement a system for properly evaluating all major capital projects prior to a final decisionon the project. Payments amounting to R 140 503 191 were made in contravention of this requirement.
An amount of R 134 867.44 qualified as an irregular expenditure after te supply chain processes were followed to approvean amount of R 1 438 100.00 for the repair and upgrading of the oil trap at W altloo depot.During the reair process thecompany was compelled to incur additional expenditure when engineers from City of Thswan Municipality required thataditional construction work be done by the contractor on site to comply with environmental laws.
The expenditure is being investigated and a report will be submitted to the Board of Directors.
35. Fruitless and wasteful expenditure
Opening balance as at 1 April 1 774 104 1 157 096 - -Current year - Fruitless an wastefulexpenses
312 326 617 008 - -
Less: Write-off approved by the accountingauthority
(1 774 104) - - -
Less: Transferred to receivables (notapproved)
- - - -
312 326 1 774 104 - -
The above expenditure relates to: - Accrued interest on secondary tax on companies which was outstanding since 2005 and only discovered when applyingfor a tax clearance certificate.(NW S (Pty) Ltd 2012: R 1 003 367)- Interest paid on late payment of tax, as the assessment was not received and only discovered when an application wasmade for a tax clearance certificate. The tax was paid immediately upon receipt of the assessment. (ABS (Pty) Ltd 2012:R 153 729)- Back-pay paid to two employees. (NWS (Pty) Ltd 2014: R 617 008)- Penalties and interest on late payment of tax 2015 R 312 375.
The expenditure is being investigated and a report will be submitted to the Board of Directors.
74|
Notes to the Group Annual Financial Statements
NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Notes
75|NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
Notes
76|NORTHWEST TRANSPORT INVESTMENTS (SOC) LTD. (Registration Number 1975/071114/30)
Group Annual Financial Statement for the Year ended 31 March 2015
ANNUAL REPORT 2014/15
