61 INTEGRATED ANNUAL REPORT 2022 NCT Forestry Agricultural Co-operative Limited and its subsidiaries (Registration number: 1949/000002/24) Annual Financial Statements for the year ended 28 February 2022 Statement of Comprehensive Income Group Co-operative Notes 2022 R '000 2021 R '000 2022 R '000 2021 R '000 Revenue 2 754 038 2 098 730 2 757 194 2 100 741 Cost of sales (2 456 798) (1 907 503) (2 437 958) (1 886 265) Gross profit 297 240 191 227 319 236 214 476 Other income 17 468 16 680 12 888 13 498 Operating expenses (206 691) (204 797) (259 181) (223 375) Foreign exchange losses (13 035) (34 653) (13 088) (34 616) Fair value adjustments (41 887) 17 428 (40 641) (3 670) Operating profit (loss) 3 53 095 (14 115) 19 214 (33 687) Dividends received 3 862 4 271 33 827 45 245 Finance income 13 971 17 027 14 625 17 180 Finance costs (6 629) (10 793) (11 942) (16 990) Profit (loss) before taxation 64 299 (3 610) 55 724 11 748 Taxation 2 (8 372) (10 969) (1 035) (3 705) Total comprehensive income (loss) for the year 55 927 (14 579) 54 689 8 043 Notes 1. Biological assets at fair value – current ShinCel (Pty) Ltd plantations in the Mooi River area have been offered for sale and are therefore reflected as current at the end of the financial year. 2. Tax and Deferred tax The Minister of Finance announced during the 2022 budget speech that the income tax rate of 28% would be reduced to 27% with effect from our 2024 tax year. As the rate change has been substantially enacted, deferred tax should be measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. However, other than in respect of the Forest Resources (Pty) Ltd (Forest Resources) farms sold to NCT Forestry Agricultural Co-operative Limited on 1 March 2022, the estimated portion of deferred tax relating to the 2023 year is immaterial in relation to the total deferred tax, the value would not be able to be calculated accurately and therefore the full deferred tax has been restated at the new rate of 27%. For the Forest Resource farms, the deferred tax has been stated using a 28% tax rate. 3. Operating profit (loss) includes: Profit (loss) on disposal of assets 305 (783) 275 (310) Depreciation 30 630 26 813 16 218 13 390 Salary and wage costs 193 693 181 583 128 970 115 156 Auditor's remuneration 969 883 394 423 Directors emoluments 1 217 1 098 1 217 1 098 Legal and professional fees 2 465 2 996 1 685 1 917
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