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BILB-Audited Financial Statements
The Land and Agricultural Development Bank of South Africa
(JSE Code: BILB)
(“Land Bank” or “the Issuer”)
RELEASE OF GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31
MARCH 2020
Overview
Land Bank has published its Audited Group Annual Financial Statements for the period ending
31 March 2020 which can be accessed on its website at www.landbank.co.za or through this
link: https://landbank.co.za/Pages/Investor-Relations, under the “Annual Results and Investor
Presentations” tab.
Preparation of the financial statements
The Group Annual Financial Statements have been prepared under the supervision of the
Chief Financial Officer, Ms. Khensani Mukhari.
Basis of preparation
Accounting policies adopted and methods of computation are consistent with those applied
to the Group Annual Financial Statements at 31 March 2019. The Group Annual Financial
Statements are prepared on the historical cost basis except for the following assets and
liabilities which are stated at their fair value: financial assets or financial liabilities held-for-
trading, financial assets or financial liabilities designated at fair value through profit or loss,
financial assets or financial liabilities designated at fair value through other comprehensive
income, investment properties and post-retirement medical benefit which are measured at
actuarial values.
The Group Annual Financial Statements have been prepared in accordance with the
recognition, measurement and disclosure requirements of International Financial Reporting
Standards (“IFRS”), Public Finance Management Act of South Africa (“PFMA”), Section 27 to
31 of the Companies Act of South Africa and the Land and Agricultural Development Bank
Act, 2002.
The Preparation of Group Annual Financial Statements requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and
reported amounts of assets and liabilities, income and expenses. Actual results may differ
from these estimates.
The comparatives for the 2020 Group Annual Financial statements have been restated. The
restatements were due to errors identified in the current year relating to prior years. Details
of the restatements are included in the notes to the annual financial statements, refer page
173.
Audit of the financial results
The Group Annual Financial Results of Land Bank for the year ended 31 March 2020 have
been audited by the Auditor-General of South Africa. In her audit report, which is available
for inspection at the Company's Registered Office, the Auditor-General stated that her audit
was conducted in accordance with International Standards on Auditing, and has expressed a
Disclaimer of Opinion audit outcome for Land Bank’s financial year ended 31 March 2020
Annual Financial Statements as reported in the SENS Announcement dated 31 December
2020. The Auditor General sighted her inability to provide an opinion on the going concern
basis of preparation of the FY2020 Annual Financial Statements as well as the valuation of
the loan book, owing to the Expected Credit Loss models not having been recalibrated since
2016 when they were developed and implemented, and the inability to validate inputs
thereto, due to the weakened control environment, for concluding on a Disclaimer of Opinion
audit outcome.
In addition to driving the restructuring process currently underway to take Land Bank out of
its event of default and to ensure that Land Bank continues to operate as a going concern,
the Board has approved a remediation plan, that is currently being implemented, to address
deficiencies that led to the disclaimed audit opinion.
03 February 2021
Enquiries
Land and Agricultural Development Bank of South Africa
Ayanda Kanana, Chief Executive Officer
Khensani Mukhari, Chief Financial Officer
Rebecca Phalatse, General Manager: Marketing and Communications – Tel: 074 159 6833
Debt Sponsor
The Standard Bank of South Africa Limited, acting through its Corporate and Investment
Banking division (registration number: 1962/000738/06)
Contacts:
Ms Natalie Di-Sante; Email: Natalie.di-sante@standardbank.co.za; Tel: +27 (0) 11 721 6125
Date: 03-02-2021 08:02:00
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