Adcorp : FY2022 Audited Company Annual Financial Statements

Audited financial statements

2022

AUDITED FINANCIAL STATEMENTS 2022

Contents

Audited financial statements 2022

02 Directors' responsibilities and approval

03 Chief Executive Officer and Chief Financial Officer responsibility statement and Company Secretary Compliance statement

04 Directors' report

1. Report of the Audit and Risk Committee

1. Independent auditor's report

1. Statement of financial position
2. Statement of profit or loss and other comprehensive income
3. Statement of changes in equity

1. Statement of cash flows
2. Accounting policies

1. Notes to the audited financial statements

1. Annexure A

44 Corporate information

www.adcorpgroup.com

General information	01

Country of incorporation and	South Africa
domicile
Nature of business and	Adcorp Holdings Limited has subsidiaries that carry on business in South Africa and
principal activities	Australia. Areas of activities include the permanent recruitment and flexible staffing sectors,
	professional IT services, as well as the provision of business process outsourcing and
	training.
Directors	GT Serobe (Chairman)
	H Singh
	C Maswanganyi
	T Mokgabudi
	M Lubega
	S Sithole
	Dr J Wentzel
	N Prendergast
	MM Nkosi
	R van Dijk
	C Smith
	P Mnganga
Business address	102 Western Service Road
	Gallo Manor Extension 6
	Woodmead
	Johannesburg
	2191
Postal address	PO Box 70635
	Bryanston
	2021
Bankers	First National Bank
Auditor	Deloitte & Touche
Secretary	Lisa Laporte
Company registration number	1974/001804/06
Level of assurance	These audited financial statements have been audited in compliance with the applicable
	requirements of the Companies Act 71 of 2008.
Preparer	The audited financial statements were independently compiled by:
	Ernst & Young Advisory Services Proprietary Limited
	Gisela Pieterse CA(SA)
Supervised by	These audited financial statements were prepared under the direction and supervision of
	Noel Prendergast CA(SA), Chief Financial Officer
Issued	30 June 2022

2022 STATEMENTS FINANCIAL AUDITED

02 Directors' responsibilities and approval

AUDITED FINANCIAL STATEMENTS 2022

The directors are required in terms of the Companies Act of South Africa No 71 of 2008 to maintain adequate accounting records and are responsible for the content and integrity of the audited financial statements and related financial information included in this report. It is their responsibility to ensure that the audited financial statements fairly present the state of affairs of the Company 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 International Financial Reporting Standards. The external auditor is engaged to express an independent opinion on the audited financial statements.

The audited financial statements are prepared in accordance with International Financial Reporting Standards, the Companies Act of South Africa (No 71 of 2008) and the JSE Listings Requirements 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 Company and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the board of directors set standards for internal control aimed at reducing the risk of error or loss in

• cost-effectivemanner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the Company and all employees are required to maintain the highest ethical standards in ensuring the company's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the Company is on identifying, assessing, managing and monitoring all known forms of risk across the Company. While operating risk cannot be fully eliminated, the Company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour 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 audited 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 company's cash flow forecast for the 12 months from approval of the audited financial statements to 30 June 2023 and, in light of this review and the current financial position, they are satisfied that the Company has or has access to adequate resources to continue in operational existence for the foreseeable future.

The Company's external auditor is responsible for independently auditing and reporting on the Company's audited financial statements. The audited financial statements have been examined by the Company's external auditor and their report is presented on pages 11 to 13.

The audited financial statements set out on pages 14 to 43, which have been prepared on the going concern basis, were approved by the board of directors on 30 June 2022 and were signed on their behalf by:

John Wentzel	Noel Prendergast
Chief Executive Officer	Chief Financial Officer

Chief Executive Officer and Chief Financial Officer responsibility statement and Company Secretary compliance statement

Chief Executive Officer and Chief Financial Officer Responsibility Statement

The directors, whose names are stated below, hereby confirm that:

1. The audited financial statements set out on pages 14 to 43, fairly present in all material respects the financial position, financial performance and cash flows of the issuer in terms of International Financial Reporting Standards;
2. No facts have been omitted or untrue statements made that would make the annual financial statements false or misleading;
3. Internal financial controls have been put in place to ensure that material information relating to the issuer and its subsidiaries have been provided to effectively prepare the annual financial statements of the issuer; and
4. The internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements, having fulfilled our role and function within the combined assurance model pursuant to principle 15 of the King Code. Where we are not satisfied, we have disclosed to the audit and risk committee and the auditor the deficiencies in design and operational effectiveness of the internal financial controls and any fraud that involves directors, and have taken the necessary remedial action.

John Wentzel	Noel Prendergast
Chief Executive Officer	Chief Financial Officer

Company Secretary compliance statement

03

2022 STATEMENTS FINANCIAL AUDITED

I certify that, to the best of my knowledge and belief, the Company and its subsidiaries has lodged with the Companies and Intellectual Property Commission (CIPC) all such returns as are required of a public company in terms of the Companies Act 71 of 2008, as amended, in respect of the year ended 28 February 2022 and that all such returns appear to be true, correct and up to date.

Lisa Laporte

Company Secretary