Trade and other receivables past due but not impaired
Trade and other receivables which are past due are not considered to be impaired. At 31 March 2025, R 1,859,635 (2024: R 3,440,196) were past due but not impaired. These relate to a number of independent customers to whom there is no recent history of default.

The ageing of amounts past due but not impaired is as follows:

Trade and other receivables impaired
As of 31 March 2025, trade and other receivables of R 901,219 (2024: R 2,150,108) were impaired. The individually impaired receivables mainly relate to producers and exporters, who are in unexpectedly difficult economic situations.

The ageing of these receivables is as follows:

The effective interest rate is between 7.10% and 7.50%. A Standard Bank guarantee was issued to Branvest Close Corporation, in terms of the Montague Garden’s office rental agreement amounting to R 112,020 (2024: R 112,020).

The entity’s obligations under operating leases are secured by the lessor’s charge over the leased assets. Refer to note 22 on commitments.

Reconciliation of property, plant and equipment – 2025

Reconciliation of property, plant and equipment – 2024

Revaluations
Cape Town – Erf 19927, Parow with office building thereon: the property was revalued by DDP Valuation & Advisory Services (Pty) Ltd, an independent registered valuer as at 6 January 2025. Valuations were made in accordance with the investment approach method using the basis of recent market transactions, rentals of similar properties in the area and an insurance valuation of the property.

Durban – Portion 1 of Erf 1736, Wentworth with office building thereon: the property was revalued by DDP Valuation & Advisory Services (Pty) Ltd, an independent registered valuer as at 8 January 2025. Valuations were made in accordance with the investment approach method using the basis of recent market transactions, rentals of similar properties in the area and an insurance valuation of the property.

Expenditure incurred to repair and maintain property, plant and equipment

Reconciliation of provisions – 2025

Reconciliation of provisions – 2024

The performance incentive is paid out in accordance with the Board approved performance incentive policy. The performance incentive payment is subject to approval by the Board. Approval is based on the outcome of the audited financial results, the achievement of the PPECB against its predetermined objectives and individuals’ agreed key performance objectives for the past financial year. The entity did not make a surplus in the current financial year and therefore no performance incentive is provided for.

All permanent employees appointed prior to 1997, may become entitled to a long service award upon completion of twenty, thirty or forty years service.

The entity provided for three potential claims (2024: two potential claims) from customers in the current financial year.

In terms of the Income Tax Act 58 of 1962, the PPECB is not subject to taxation. No provision was made for income tax.

The PPECB has related party relationships with the Department of Agriculture, members of the Board and the management committee. The Department of Agriculture has significant influence. Services delivered to related parties are on terms of business normally prevailing with third parties. The PPECB rendered services of R 24,251,744 (2024: R 15,113,260) to companies on which some of the members of the Board serve and to the Department of Agriculture. The outstanding debtors balances of these companies and the Department of Agriculture totalled to R 1,463,668 (2024: R 1,050,501).

Related party balances

Management class: Board members

2025

The carrying amount of trade receivables in the statement of financial position represents the Board’s exposure to credit risk in relation to these assets. Credit limits assigned to customers may be exceeded due to timing differences. Such instances are individually approved and closely monitored by management. Management does not expect any losses from non-performance by these counterparties. The Board’s exposure to concentrated credit risk is low due to the large number of customers and their dispersion across different geographical areas and product sectors.

Market risk

Cash flow and fair value interest rate risk
The Board’s interest rate risk arises from investments held to maturity as well as from cash and cash equivalents. The Board’s policy is to maintain its investments across a range of high-quality financial institutions. Interest rate exposure and investment allocations are evaluated by management on a regular basis. This risk is managed by maintaining an appropriate mix of investments with registered financial institutions. Interest – bearing investments are held with reputable financial institutions in order to minimise exposure.

Interest rate risk
As the entity has no significant interest – bearing assets, the entity’s income and operating cashflows are substantially independent of changes in market interest rates.

Capital risk management
Capital is regarded as total reserves which is a result of accumulated surpluses. The Board strives to maintain a sufficient reserve as to sustain its statutory obligations. The level of the reserves is dependent on the approval of the Minister of Agriculture.

Summary of financial instruments

Authorised capital expenditure

The above prior year commitments were financed by retained surpluses and existing cash resources. There are no commitments for the current financial period.

Operating lease payments represent monthly rentals payable by the entity for certain of its office properties. Renewals and escalations are executed per the lease agreements.

General information

Identification of segments
The segmental information has been prepared in accordance with the Standards of GRAP, issued by the Accounting Standards Board in accordance with Section 91(1) of the PFMA.

The segmental information report reflects the reportable segments regularly provided, reviewed and used by the Board and Executive Management to make strategic decisions and assess performance of the segments. The Executive assesses the performance of the operating segments based on a measure of contribution consistent with that of the financial statements.

The operations in each reportable segment are: Statutory Services and Food Safety Services, which provide mostly regulatory services at a fee to the perishable product industry. Statutory Services are responsible for delivering integrated inspection and cold chain services on perishable products being exported. Food Safety Services refers to the assurance given that food will not cause harm to the consumer when consumed. The Transformation and Development Services Programme is aimed at building capacity through the development of internal and external skills. Corporate Services ensures coherence among the respective programmes within the PPECB by providing support, direction, leadership and promoting the services of the entity.

Segment of (deficit) surplus

Additions to non-current assets, total assets and total liabilities of segments have not been disclosed as the amounts are not regularly provided to management for review.

Additions to non-current assets, total assets and total liabilities of segments have not been disclosed as the amounts are not regularly provided to management for review.