Stefanutti Stocks Group

Consolidated Annual Financial Statements

2023

stefanuttistocks.com

Contents

Simplified group organogram

1

Group structure

2

Audit, governance and risk committee report

3

Directors' report

7

Independent auditor's report

11

Consolidated Statement of Profit or Loss and Other

15

Comprehensive Income

Consolidated Statement of Financial Position

17

Consolidated Statement of Changes in Equity

18

Consolidated Statement of Cash Flows

19

Notes to the consolidated annual financial statements

20

Accounting policies

86

Shareholder analysis

98

Abbreviations and definitions

100

Corporate information

101

Preparation of

annual financial statements

The annual financial statements contained in this report, have been prepared under the supervision of the Chief Financial Officer, Y du Plessis, CA(SA). The annual financial statements have been audited in compliance with the applicable requirements of the Companies Act, No. 71

of 2008, as amended (The Companies Act).

Yolanda du Plessis

Chief Financial Officer

19 June 2023

Certificate by the Company Secretary

In terms of section 88(2)(e) of the Companies Act No. 71 of 2008, I certify that, to the best of my knowledge and belief, Stefanutti Stocks Holdings Limited has, in respect of the financial year ended 28 February 2023, lodged with the Companies and Intellectual Property Commission all returns and notices required of a public company in terms of the Companies Act No. 71 of 2008 and that all such returns and notices are true, correct and up to date.

William Somerville

Company Secretary

19 June 2023

CEO and CFO responsibility

statement on internal financial controls

After due, careful and proper consideration, the directors, whose names are stated below, hereby confirm that:

  • the annual financial statements set out on pages 15 to 97, fairly present in all material respects the financial position, financial performance and cash flows of the issuer in terms of IFRS;
  • to the best of our knowledge and belief, no facts have been omitted or untrue statements made that would make the annual financial statements false or misleading;
  • internal financial controls have been put in place to ensure that material information relating to the issuer and its consolidated subsidiaries have been provided to effectively prepare the financial statements of the issuer;
  • 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 as executive directors with primary responsibility for implementation and execution of controls;
  • where we are not satisfied, we have disclosed to the Audit, Governance and Risk Committee and the auditors any deficiencies in design and operational effectiveness of the internal financial controls and have taken steps to remedy the deficiencies; and
  • we are not aware of any fraud involving directors.

Russell Crawford

Chief Executive Officer

Yolanda du Plessis

Chief Financial Officer

19 June 2023

Kempton Park

Simplified group organogram

Stefanutti Stocks Holdings Limited

1996/003767/06

Stefanutti Stocks

Stefanutti Stocks

Stefanutti Stocks

Investments

International Holdings

Proprietary

Proprietary Limited

Proprietary Limited

Limited

(South Africa)

(South Africa)

(South Africa)

1997/005231/07

2005/015885/07

2003/022221/07

Cross-border

Operational

operational

subsidiaries

subsidiaries and

joint operations

Equity-accounted

investees

Joint operations

Stefanutti Stocks Group  Consolidated Annual Financial Statements 2023

1

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Stefanutti Stocks Group  Consolidated Annual Financial Statements 2023

Audit, Governance and Risk Committee report

The Audit, Governance and Risk Committee (ARCO or the committee), appointed in respect of the 2023 financial year of Stefanutti Stocks Holdings Limited, provides this report in compliance with section 94(7)(f) of the Companies Act, the principles of King IV and other regulatory requirements.

Meetings

During the year, the committee held six meetings. Attendance at these meetings is set out in the corporate governance report on page 52 of the Integrated Annual Report 2023. The committee also met in private with the external auditors.

The ARCO

In addition to the specific Companies Act statutory responsibilities bestowed upon it, the committee advises and submits recommendations to the board on the group's financial reporting, internal financial controls, legislative and regulatory compliance as well as the external and internal audit functions.

Terms of reference

Guided by the Companies Act and King IV, the board has adopted and approved the committee's formal terms of reference. No changes were made to the terms of reference after the annual review process. In accordance with these terms of reference, the committee confirms that it has executed its duties during the past financial year. Refer to pages 49 to 57 of the Integrated Annual Report 2023 for a discussion on how the 16 principles of King IV Report on Corporate Governance for South Africa 2016 (King IV) have been applied.

Composition

The board nominated the members of the committee in respect of the 2023 financial year and shareholders appointed its members at the Annual General Meeting (AGM), which was held on 5 August 2022. Shareholders will be requested to approve the appointment of the committee members for the 2024 financial year at the AGM that is scheduled for 4 August 2023.

Post year-end, John Poluta resigned as independent non-executive director from the board of Stefanutti Stocks with effect from 13 March 2023 due to health reasons. He has served on the board since July 2017 and served as a member of the ARCO. Howard Craig was appointed as a member of the ARCO with effect from 13 March 2023 . The committee comprises further of Bharti Harie as Chairman and Busisiwe Silwanyana, both independent non-executive directors.

The board Chairman, Chief Executive Officer (CEO), Chief Financial Officer (CFO), Group Risk Officer, Financial Manager, external and internal auditors attend the meeting as invitees. The company secretary acts as secretary to the committee.

The board has satisfied itself that the committee members are suitably skilled, have the correct expertise and experience, are independent and are qualified to fulfil their duties. Abridged biographies of the members are published on pages 44 and 45 of the Integrated Annual Report 2023.

Execution of duties

During the year the committee:

  • Identified specific focus areas, as set out on page 5;
  • Evaluated the independence of the external auditors with regard to tenure, individual partner rotation as well as their performance, and recommended their reappointment, to the board;
  • Reviewed the quality of the external audit function with regard to audit quality indicators as indicated in reports by external regulators. Based on these indicators, the committee was satisfied with the quality of the external audit function;
  • Reviewed the quality of the internal audit function with reference to the findings from their independent internal review processes;
  • Noted the Johannesburg Stock Exchange Limited (JSE) requirements regarding mandatory audit firm rotation (MAFR) and partner rotation;
  • Confirmed the accreditation of the external auditors and the audit partner with the JSE with regard to tenure as well as individual partner rotation;
  • Considered and evaluated the key audit matters as set out in the external auditor's report which remain largely the same as the previous year and the committee is satisfied that the matters have been correctly disclosed in the integrated annual report and consolidated annual financial statements;
  • Reviewed the areas identified by the external auditors as being of significant risk and their approach to auditing these;
  • Reviewed the external audit findings and reports;
  • Approved any non-audit services performed by the external auditors and the policy in this regard;
  • Reviewed the draft audited financial statements and integrated annual report, the preliminary announcement and interim statements;
  • Included the review of the company's Restructuring Plan (with the underlying assumptions), as part of its standard agenda item for each meeting. This is fully discussed on page 7;
  • Reviewed the company's ongoing solvency, liquidity and going concern status;
  • Reviewed, together with the external auditors, the conformity of the audited financial statements and related schedules with International Financial Reporting Standards (IFRS) and the company's accounting policies;

Stefanutti Stocks Group  Consolidated Annual Financial Statements 2023

3

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Stefanutti Stocks Holdings Limited published this content on 28 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 June 2023 11:55:04 UTC.