2015/16 ANNUAL REPORT
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1 2015/16 ANNUAL REPORT Jewellery Skills Training and Business Incubation /16 GJA ANNUAL REPORT
2 TABLE OF CONTENTS Contents...2 Who we are...3 Vision...3 Values...3 Where we are...3 Message of the Chairperson of the Board...4 Remarks from the Chief Executive Officer...5 Operational Report Organogram...9 Board Composition Success Stories Financial Overview by the Independent Auditors Gallery Our partners...21 Special thanks to our Partners A word of appreciation and gratitude goes to our Partners, Board Members, local Community structures and staff in general for their support in the delivery of the institution s mandate. The achievements shared in this report are a clear indication that, despite a number of challenges faced during the period under review, GJA can only continue to improve in its quest to provide a better future to Learners and Businesses in the Incubation Programme /16 GJA ANNUAL REPORT
3 WHO WE ARE OUR VISION: To become a national and internationally renowned centre of excellence in the delivery of high quality training in the Jewellery industry as well as business incubation support provision to graduates and existing businesses in the sector in line with donors and partners expectations. OUR MISSION: Equip People with Disabilities with Skills to enhance added value on locally mined minerals commodities and to ensure business incubation empowerment to new and existing businesses in the Jewellery sector thus changing the lives of People with Disabilities and youth from disadvantaged backgrounds. OUR VALUES: 1. Upliftment of the living standards of Persons with Disabilities, restoration and stimulation of self-esteem, dignity and human respect. 2. Endeavor not only to be the best Jewellery academy for People with Disabilities but, the best academy for Jewellery design and manufacturing in the region. 3. Pursue the best models in the business incubation support while promoting ethical and transparent business practices and principles. WHERE WE ARE: Lenasia, South Africa /16 GJA ANNUAL REPORT
4 Message of the Chairperson of the Board Our main responsibility as the Board is to adopt and steer the strategy of the academy in a manner that will ensure we meet the targets that we have set for ourselves and the expectations of our funders and supporters to give young people with disabilities access to quality training and Business Incubation that will equip them to create sustainable jewellery making enterprises. Our mission is informed by the National Development Plan that people with disabilities must have enhanced access to quality education and employment. Efforts to ensure relevant and accessible skills, development programmes for people with disabilities, coupled with equal opportunities for their productive and gainful employment, must be prioritised. The Board identified three key challenges that are critical to our success. These are: The recognition that our incubation section needs to start producing graduates who are successful in starting and running jewellery enterprises that are profitable and create much needed job opportunities; We accepted the fact we cannot expect to be funded all the time, and, soon rather later, we need to develop the capacity to self-fund. As a result, the Board started looking at developing a Sustainability Plan that will provide the Academy with revenue and other resources to provide skills training and incubation services to young people with disabilities for many years to come; and To implement best practice in good governance. Our CEO Mr Robert Buys, in his report, will detail the work that has been done to address the challenges we all identified at the beginning of this financial year. I have no doubt that we will succeed as long as we stick to the plan that we agreed to. Our Board has four meetings a year. The discussions in our meetings are always robust and productive. But we have overlooked one important thing - the evaluation of the impact of each member. Starting in the new financial year, we intend doing this at least once a year. This tool will help us get the best out of every member and improve the work of the committees. One of our weaknesses has been the poor marketing of the institution. The board has begun to address this important issue. A new logo and a professional looking website were launched in July. We are now looking at developing a social media engagement plan that we are certain will assist our young entrepreneurs to attract new clients and grow their businesses /16 GJA ANNUAL REPORT We were unfortunate that during the year under review, Ms Louisa Zondo resigned as a member of the Board. The CEO, on my behalf, thanked her for her contribution to the academy. I am pleased to welcome Mr Bongani Khanyile of the National Regulator for Compulsory Specifications as Ms Zondo s successor on the Board. We are also hoping to attract at least one female to join our Board members in the new financial year. I am confident that, going forward, the institution will continue to deliver in line with the funders and stakeholders expectations despite the challenges highlighted earlier. On behalf of the Academy, I would like to thank our Stakeholders but, in particular our funders, the Small Enterprise Development Agency (Seda), the Mining Qualifications Authority and the City of Johannesburg for their continued support and valued contributions to our cause. I would also like to thank the members of the Board for their hard work throughout the year, the CEO and his staff for their continued commitment to their work, the incubatees and learners for their enthusiasm despite limited resources at the Academy. People with disabilities must have enhanced access to quality education and employment. Thami Bolani (Board Chairperson)
5 Remarks from the Chief Executive Officer Looking at the fact that unemployment in our country is growing at an alarming rate, Global Jewellery Academy is in a position to deliver two key critical components which will in turn contribute to the institution s delivery mandate: 1. Certified Skills Training provision in the Jewellery sector supported by MQA (Mining Qualification Authority). 2. Business Incubation Programme supported by Seda (Small Enterprises Development Agency). The two above areas will certainly support Government employment drive in all spheres of the community. Looking at the fact that the initiative is at the Mayor s doorstep, the City of Johannesburg came and joined hands to support the initiative by providing an infrastructure free of charge with water, electricity and security. Stakeholders such as GEP Gauteng Enterprise Propeller, IDT Independent Development Trust, Eskom, MTN, Johannesburg and Rand Water as well as private individuals made it possible to put GJA where it is now. It is important to note the key factor being played by the Business Incubation Programme not only at our institution but, equaly across the country where the Incubation Programme is being delivered as it enhances their sustainability and improves the survival rate of the Small Businesses in general. The Skills training Programme being offered at the Academy is indeed a foundation that gives the Learners a Skill in the Jewellery sector which can be a platform for either improving their chances of employment or start and sustain their own Jewellery Businesses and create the so much needed jobs. The new Board members have come at the appropriate time to ensure that all areas of the institution delivery mandate are in line with the partners and stakeholders expectations. Going forward, GJA plans to strengthen the Clients support base of Business Incubation Programme, refurbish the existing structure in the premises and convert it into a jewellery commercial factory, employ additional professional staff for mass production, encourage business incubates to make use of the factory environment to enhance their businesses in terms of product development and marketing opportunities. The two combinations of the Academy: Skills training provision and mass production factory exposure to talented, experienced and aspiring young businessmen and women to succeed in spite of their disabilities and other challenges. This will give the Academy not only a competitive edge in this sector but an appropriate platform that will culminate in selfconfidence particularly to those affected by a disability of one nature or the other. The Skills training Programme being offered at the Academy is indeed a foundation that gives the Learners a Skill in the Jewellery sector which can be a platform for either improving their chances of employment or start and sustain their own Jewellery Businesses and create the so much needed jobs. Robert Buys (CEO) /16 GJA ANNUAL REPORT
6 2015/16 OPERATIONAL REPORT Operations: Seda - Business Incubation During the period under review, the Centre has performed above expectations having met 90% of key targets set by our key funder: Seda (Small Enterprise Development Agency) which were the following: ACTIVITY TARGET ACHIEVED New SMMEs established Jobs created Clients supported SMMEs supported Business Incubation Support New SMMEs established Jobs created Clients supported SMMEs supported TARGET ACHIEVED Though with a shortfall in two areas, the above figures are supported by MOVs (Means of Verification) as requested by Seda on a Quarterly basis. Continuous support and staff training by the allocated Seda Project officer in particular to terminologies and required documentation and processes, I am certain that a number of mistakes will be addressed and the report will in future be presented in line with all requirements and partners expectations. The assigned Projects Co-ordinator is comfortable that, with the appropriate support provision and guidance to Incubators, accurate reports can be submitted on time every time as well as improved relationship between the parties. Operations: MQA - Skills Training Skills development training provision under MQA: For the period under review, 55 (M=36, F=19, PWD=38) Learners were enrolled for Skills Training in Levels 2 and 3. Please note the following breakdown: Graduation: Level 2: 20 (M=12, F=8) Level 3: 27 (M=14, F=13) Drop outs: 8 (M=6, F=2) /16 GJA ANNUAL REPORT
7 Human Resources: Resignations: The Centre had a very stable staff turnover whereby there was only one resignation during the period under review. Staff morale is high and very positive thus contributing towards a conducive environment for learning and Business Incubation. Staff contracts and remunerations: The financial situation at the Centre is continuously showing improvements; staff has been given a one year employment contracts. The change in staff contractual periods has made them to be more secure and above all, to be committed to serve the Centre with a stronger heart and mind. Although salaries have improved at the Centre, they remain below average when compared to the existing scale within the sector. This situation has made staff to feel insecure and consider new opportunities when they come along. The institution must at all times guard against low team morale which can cause lack of commitment towards their work. Audited financials: The auditors of the Centre s financials are A.Carrim and Associates and I am pleased to inform you that the Auditor s report for the period under review has no findings and is attached to this report. Partnerships: GJA has during the period under review, managed to maintain good relationships with our current partners in particular Seda, MQA and the City of Joburg. Discussions are ongoing to secure additional and continuous partners such as: Centre. Key challenges: 1. Safety around the Centre: The Centre s location is a safety concern as it is situated in a very remote area. Staff, Learners and property have been targeted by criminals and some incubatees are reluctant to join us. The community and the police have been informed and their support and commitment has been pledged and their support is showing positive results. 2. Property Lease Renewal: There is a high level of uncertainty around this matter as indicated in previous reports however; the Centre Manager has been in meetings with the City of Joburg Economic and Social Development Units but still no concrete decision in our favor has been taken. 3. Short term staff employment contracts: Short term staff contracts is a great concern amongst staff as this creates a highly level of insecurity as indicated above however, the yearly contracts currently in place, are welcome by staff. 4. Outdated Workshop Equipment Discussions are ongoing with the funders with an objective to improve the current situation as Business Incubattees in this sector need more modernized equipment to be competitive. Eskom Foundation, MTN, Rand Water IDT (Independent Development Trust). Discussions are in progress to bring on board partners such as SAB Miller, Anglo Gold, the University of Johannesburg and SABS. Marketing, Networks and Exhibitions: It is important to note that Small Businesses are a catalyst of any economy across the globe and it is indeed crucial that the state and the private sector support all initiatives done in this regard. At the moment, the Centre Manager and his team are driving the process until an appropriate person or institution are identified and tasked with the process. In the period under review, a number of Community radio stations and newspapers have been engaged as well as Community Civic Organizations, Local Municipality and Businesses to ensure the promotion of the Centre s activities at all levels for additional support to the Incubattees and the Incubatee in the workshop /16 GJA ANNUAL REPORT
8 Learnership Summary Learners Male Female Disabled Incubatee in the workshop /16 GJA ANNUAL REPORT
9 ORGANOGRAM Chairperson: T. Bolani Vice Chairperson: Dr. L. Gadzikwa Directors: S. Khwebulane, M. Mtsweni, S. Zikalala, T. Gcwabaza MQA administrator Robert Buys Seda administrator (Vacant) Acting: Sabelo Taderera Cleaner Julia Sina Gcina Malinga, & Philemon Masilo Incubation Technical Support Gcina Malinga Sabelo Taderera Company Secretary Adv. G. Martins BOARD SUB-COMMITTEES Dr. Lawrence Gadzikwa: Mr. Malembe Mtsweni: Mr. Sipho Khwebulane: Mr. Thabo Gcwabaza: Chairman: Finance, Risk and Audit Chairman: HR and Governence Chairman: Marketing and Fundraising Chairman: Safety & Occupational Health Company Secretary: Adv. Giel Martins /16 GJA ANNUAL REPORT
10 GJA BOARD OF DIRECTORS Thami Bolani Board Chairperson Thami was elected non-executive chairman of the board in December He was asked to join the board after a long and distinguished career in the public sector and non-profits. He is the leader of Consumer Fair, a consumer organization that has championed consumer rights and interests in our country for many years. In 2003 he received the dti award for consumer champions in the individual category. In 2005 he co-founded the first consumer rights newspaper in the country. Thami brings a lot of experience to the board on supporting small and medium enterprises. He has worked at senior management level for organization such as NAMAC Trust and seda. Bolani believes that his passion for publicity and marketing, which began when he was stationed at Radio Freedom in Lusaka Zambia, will contribute immensely in raising the profile and ensuring the sustainability of this important institution. Robert Buys Chief Executive Officer Robert Buys, an entrepreneur himself, understands the challenge put before him particularly in ensuring that Global Jewellery Academy becomes the preferred Skills Training Centre in the Jewellery Sector in the Region for Persons with Disabilities as well as a Business Incubator for the Graduated Learners and existing external businesses in the sector. Robert holds a Diploma in Production and Inventory Control Systems from Wits Technikon, a Diploma in Effective Communication Leadership from Canton Graduate School in the USA, a qualified Master Assessor, an Accredited Business and Industrial Advisor. He travelled extensively throughout Africa and Europe and the experience gained over the years will assist him in driving Global Jewellery Academy s mandate in the following 4 key areas: - Skills Training Provision in the Jewellery Sector to Persons with Disabilities. - Provision of Business Incubation support to new and existing SMMEs in the Jewellery sector. - Facilitate transition of Qualified Learners into Business. - Use the Academy as a catalyst for Job creation. Previously, Robert served on various institutions at Operations and Senior Management locally and abroad: Zimbabwe Mining and Smelters, Swaziland Chemicals, Nampak Glass, NAMAC National Manufacturing Advice Centres, Seda, Small Enterprise Development Agency, Carmoc Paper Plant Mozambique. During spare time, Robert coaches a basketball team in Boksburg as well as conducting motivational talks to High School learners in Reiger Park Boksburg Siphiwe Zikalala Board Member Siphiwe Zikalala is the founder of Global Jewellery Academy inspired by the desire to see his deaf son Boitumelo Zikalala leading a self- reliant life. In 2009 the desire came to realisation thanks to Mr. Peppie Pokobelli a gem stone cutter in Madagascar who accepted to teach Boitumelo the skill of stone cutting. Upon his returning to South Africa, I then registered Global Jewellery Academy as an NGO and got it accredited with the Mining Qualification Authority (MQA) and with the dti as an Incubator Programme. Siphiwe, a Msc. Mining Geologist from Patrice Lumumba University Moscow, has since retired from pursuing mining interest and is now a game farmer. He has established another training centre Zvezda Skills Academy to teach the youth especially the deaf, the skills in game breeding and indigenous medicinal plants /16 GJA ANNUAL REPORT
11 /16 GJA ANNUAL REPORT Dr. Lawrence Gadzikwa Board Member Dr. Gadzikwa is the CEO of Hand in Hand SA and founder and Managing Director of BlaPau Management Consulting, a company specialising in strategy development and execution across different sectors. Lawrence is a seasoned management consultant with broad consulting experience in strategy and management processes accumulated over 20 years of working in both public and private sectors and as an entrepreneur. Over the years, Lawrence has delivered practical and relevant outcomes to clients in the following areas: Enterprise Development & Entrepreneurship; Strategy Development and Execution; Business Performance Improvement (Business Process Re-engineering); Cost Reduction and Revenue Enhancement; Business Mentoring and Coaching; Programme Design, Monitoring & Evaluation; Cleaner Production Assessments (CP) Resource Efficiency Audits Energy, Water, Material and Agriculture & Agribusiness. In the past few years, Lawrence has been involved in projects with the following selected clients; Cities Network, ICASA, SEDA- Gauteng, DBSA, ABSA, Eskom Transmission, Aveng, Ngaka Modiri Molema District Municipality, Ratlou Local Municipality, Transnet Freight Rail, NCPC-SA/CSIR, CIDB, African Union Commission, Futures Group, SAMSA, University of Johannesburg, and Tshwane University of Technology. Lawrence is a member of the South African Monitoring and Evaluation Association (SAMEA), Institute of Business Advisors of South Africa (IBASA) and Agricultural Economics Association of South Africa (AEASA). Lawrence is a holder of a CIS diploma from the Institute of Chartered Secretaries and Administrators, and BSc, Msc and PhD Degrees in Agricultural Economics. He is also a Board Member of the Institute of Business Advisors of South Africa (IBASA), Global Jewellery Academy, and Hand in Hand Lesotho. Thabo Gcwabaza Board Member Thabo Gcwabaza is an experienced professional in Mining, Minerals Processing and Beneficiation, with in-depth exposure to Strategy, Research and Development including optimising value, project management to achieve economic and financial targets. In addition he has a strong scientific based nanotechnology background from his earlier career at CSIR as a Research Scientist. He has a number of degrees from USA Universities (West Virginia State University and Marshall University), ranging from undergraduate to graduate degrees (Associate degree in Chemical Technology, Bachelor s degree in Chemistry and Master s degree in Chemistry). After graduating with Master s degree, he came back to South Africa and worked in research space and later moved to the mining sector as a Technical Specialist, in Refinery department where he leads a team of Process Engineers in the dynamic and challenging Platinum Group Metals. He is currently finishing his PhD in Chemistry and Master s degree in Business Leadership with both University of Pretoria and UNISA respectively. He serves in a Board of Directors at Global Jewellery Academy and he sits in the panel of experts in the Climate and Innovation Centre aimed at supporting development and commercialisation of clean technologies, with a particular emphasis on climate mitigation and adaptation. In addition, he is a member of Alpha Phi Alpha Inc., a global organisation that is known to develop leaders, promotes brotherhood and academic excellence, while providing service and advocacy for our communities. Thabo is passionate about bridging the gap between science and social economic development objectives. Malembe Mtsweni Board Member Malembe Mtsweni has been a member of the Global Jewellery Academy Board of Directors since He has a Nat.Dip Engineering, Grad. Dip Marketing Management (IMM), City & Guild Quality Techniques. He joined Small Enterprise Development Agency in 2008 and assumed the position of Manager- Conformity Assessment & Training. Other Activities and Functions; he is a member of the Board of Directors of the following organisations: Seda Essential Oil Business Incubator (SEOBI) since 2012 Mobile Agri Skill Development & Training (MASDT) since 2015 Ekurhuleni Jewellery Project (EJP) since 2016 He is a member of the TC 176 committee on Standards.
12 SUCCESS STORIES Afrirasta Designs Mpho, known as Rastaman, started producing beadwork in line with Rastafarian trends in 2003 and selling his products at the Dodsonville Shopping Mall in Soweto. This trade continued until 2008 when he diversified and started producing molded clay ornamental vases of different South African cultures and painting them with the relevant traditional colors. Mpho realized that his informal business could grow further if he could get a metal jewellery skill training to blend his beadwork and vase painting. He then contacted Johannesburg Social Development unit for support in terms of a bursary to study Jewellery on a full time basis. He was then referred to Global Jewellery Academy for more enquiries and registration process. He was accepted at the Centre in 2014 to start with the Jewellery training process as a Learner at Level 2. Assistance Provided by the Incubator: Upon enrolling at the training Centre, he spent the first year training in the following skills: Definitions and types of jewellery, metals and their properties, basic jewellery design, jewellery manufacturing process including molding, powder investing, casting, jewellery hand making process, metal and beads fusion, jewellery repair, polishing and welding. He graduated to Level 3 at the end of In 2015, he was enrolled in Level 3. His interest in the jewellery industry was evident through his work and commitment in the workshops and he was soon identified as good material for the business incubation programme. At this stage he was placed in the Preincubation phase and received the following support: Registration of his company, Tax clearance, business bank account opening, basic business planning, key business principles and practices, definitions of marketing, product quality, exposure to exhibitions and communication principles. Currently in the Business incubation programme and doing well in the following areas: Sales and Marketing, Design to client s needs, Exhibitions, Jewellery alterations to client s needs and request, jewellery repairs as well as polishing. Through GJA incubation programme, Mpho s business has grown from operating in an informal basis, to a formal platform with all key business compliance aspects as required by our laws. His business concept has also grown from just beading to a variety of jewellery production pieces. With a tremendous change of income from R0 to R a month, Mpho is currently looking at creating 5 permanent jobs by 2016, graduating from the local incubation to a virtual incubation and working from his own set up workshop and increase revenue of 50% on year to year. Mpho is evidence of the change that Global Jewellery Academy is bringing to the communities. Assorted jewellery items Silver ring with gem stone /16 GJA ANNUAL REPORT
13 Afurukanu Jewellery Experts Petrus, known as Tshepo, while doing Level 3 electrical studies, was forced to drop out from the technical school in 2013 due to lack of financial backup and support. He then decided to join Global Jewellery Academy for skills training Level 2 in the Jewellery sector. He fell in love with the training and the industry and his commitment saw him graduating to Level 3 in At this stage, his passion for the sector increased and, the work being done by the existing incubattees motivated him to look at his future beyond the training days. While doing Level 3, he decided to register and formalize the company of his dreams: AFURUKANU JEWELLERY EXPERTS cc. This move made him to be placed under the Pre-Incubation phase of the Programme. His contemporary jewellery pieces placed him to stand out as a jeweler and designer and these two elements enlightened his work to excel in the industry. Tshepo has just completed his Level 3 training and, if all goes as per plan, he will further his training in Level 4 in 2016/17 while driving his business as an incubattee within the Centre. This approach will indeed build his confidence while sharpening his skills in the sector and have a much better chance to sustain his business after exiting the programme. Assistance Provided by the Incubator: Tshepo s commitment to his work as a business made him to shine and be noticed for consideration when it comes to additional support interventions as well as participation in Jewellery competitions and exhibitions. Based on the above and with an objective to make the business excel in terms of quality, networks and customer relations, the Incubator assisted in the provision of the following skills and support: Definitions and types of jewellery, metals and their properties. Basic jewellery design. Jewellery manufacturing process including molding, powder investing and casting, Jewellery hand making process, metal and beads fusion. jewellery repair, polishing and welding. Tshepo acknowledges that, apart from the technical component of the business, there are other key elements that are an essential contributing factor for the sustainability and growth of the business which were also provided by the Incubator, such as: Accounting and Budgeting. Marketing and customer relation. Exhibitions. Business legal status and Tax and Labor compliances. Tshepo is what it can be considered an entrepreneur from nothing to something in that: Started his business from scratch. He worked his way up from no jewellery business knowledge to a business working bench in a workshop. Tshepo has, through the incubation programme, gained not only technical skills in the jewellery sector, but also solid business concepts currently in practice. His business concept grew from nothin to a variety of jewellery production pieces. From a R0 income to a R a month and still growing From operating in an informal basis to a formal platform with all key business compliance aspects as required by our laws. His business has a selling point in Maphonya Mall. The business has already created 1 temporary job. Assorted jewellery items Male & female silver rings /16 GJA ANNUAL REPORT
14 POLITE WORLD DESIGN Although opening my own business was always at the back of my mind, after completing matric I started working for a retail store. During my retail employment, I started to fall in love with Jewellery but, during this creative phase two questions came to me: One: What is Jewellery? Two: How is Jewellery crafted? had a strong inclination to answer these questions by virtue of practice and rigorous persistence. I then quit my retail nine-to-five job and started my quest to finding a learnership school in Jewellery that would cater for my immediate needs. I later than found a Jewellery manufacturing school that offered me Level 3 program. Upon completing the program in a years time, l wanted to open my own business however; I was not allowed to make or have my own practice outside the scope of the school due to lack of experience. Furthermore, after the completion of my Level 3 had nothing to do until one of my friend told me about a skills and business development incubation center in Lenasia catering for persons living with disabilities and Youth from disadvantaged background whereby they are equipped with an equal opportunity to contribute towards the country s economic development. In my view this was a revolutionary initiative and I wanted to be a part of it, as a result I wanted to register with them as soon as possible. I then went to the Centre for details regarding level four, to my surprise they informed me in great detail about their incubation program where they explained to me that they re an incubation for skills and business development. In such a program, I would be taught practical strategic tools to run my business from every angle and, I was informed that the programme is administered by the Business Development officer and on the other hand, I would be taught advanced jewellery crafting while attending workshops to improve on my skills in the sector. financial management Inadequate equipment to perform operational procedures required by the industry. No access to markets (faced barriers to entry), no accreditation in the sector. Intervention/Solution by Global Jewellery Academy: Faced with the above challenges, I approached the Incubator (Global Jewellery Academy) for assistance and I was pleased with the institution s approach to my request. The following were the key to my business challenges: I shared with incubator s Business Development Officer my Vision, current needs, business goals so he could understand the point of departure in line with the assessment. I signed a client s contract in line with parties commitments and obligations. Once my needs were clearly discussed, a support plan of action was put in place. I was assigned a workspace in the workshop. I was assigned a technical mentor. The Business Development Officer assisted me to prepare a Business Plan in my own words. I was guided through the Networking and Business strategies. I attended weekly classes on pricing, break even points, profits and discounts. Marketing platforms: Exhibitions, Internet advertising and clients sourcing techniques. Product development and reengineering. Networking sessions with other incubattees to discuss ideas and share experiences. Outcome from the support received: The support provided by the Incubator made me look at the jewellery business as a viable business that can grow. The following below are the areas of benefit from the support received: The business is now more visible to clients. The business can now save on all related industry costs. The business has its own business plan and marketing strategies. I now have a defined market audience. Quarter /16, sales were R Quarter 1,-2O16/17, sales were R Work volumes indicate that there is now a need to employ 1 person to assist. Key Challenges: No professional business plan. Tough technically balanced but, lacked operational business skills such as marketing, sales, and Assorted bead work Set of female silver ring /16 GJA ANNUAL REPORT
15 FINANCIAL OVERVIEW IndependenT Reviewers Report To the Management of Global Jewellery Academy We have reviewed the financial statements of Global Jewellery Academy, set out on pages 6band 13, that comprise the statement of financial position as at 29 February 2016, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information. Directors Responsibility for the Financial Statements The company s directors are responsible for the financial preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act 71 of 2008, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Independent Reviewers Responsibility Our responsibility is to express a conclusion on the financial statements based on our review. We conducted our review in accordance with International Standards on Review Engagements (ISRE) 2400, Engagements to Review Financial Statements, ISRE 2400 requires us to conclude whether anything has come to our attention that causes us to believe that the financial statements, taken as a whole, are not prepared in all material respects in accordance with the applicable financial reporting framework. This Standard also requires us to comply with relevant ethical requirements. A review of financial statements in accordance with ISRE 2400 consists primarily of making inquiries of management and others within the entity involved in financial and accounting matters, applying analytical procedures, and evaluating the sufficiency and appropriateness of evidence obtained. A review also requires performance of additional procedures when the practitioner becomes aware of matters that cause the practitioner to believe the financial statements as a whole may be materially misstated. The procedures performed in a review engagement are substantially less than those performed in an audit conducted in accordance with lnternational Standards on Auditing. Accordingly, we do not express an audit opinion on these financial statements. Unqualified Conclusion Based on our review, nothing has come to our attention that causes us to believe that the financial statements do not present fairly, in all material respects the financial position of Global Jewellery Academy as at 29 February 2016 and its financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards and the requirements of the Companies Act 71 of Other reports required by the Companies Act As part of our review of the financial statements for the year ended 29 February 2016, we have read the Directors Report for the purpose of identifying whether there are material inconsistencies between these reports and the reviewed financial statements. This report is the responsibility of the respective preparer. Based on reading this report we have not identified material inconsistencies between this report and the reviewed financial statements. However, we have not reviewed this report and accordingly do not express a conclusion on this report. A Carrim & Associates Chartered Accountants (SA) Registered Auditors /16 GJA ANNUAL REPORT
16 Statement of Financial position As at 29 February 2015 Figures in Rand Note(s) 2016 R 2015 R Assets Non-Current Assets Property, plant and equipment 2 109, ,867 Current Assets Trade and other receivables 3 23,431 20,432 Cash and cash equivalents 4 348, , , ,725 Total Assets 481, ,592 Equity and Liabilities Equity Retained income 481, , /16 GJA ANNUAL REPORT
17 Statement of comprehensive income Figures in Rand Note(s) 2016 R 2015 R Revenue Cost of sales Gross profit Other income Operating expenses Operating (loss) profit Investment revenue (Loss) profit for the year Other comprehensive income 5 3,411,539 (287,407) 3,124,132 26,023 (3,253,539) 103,384 28,508 (74,876) - 2,659,700 (84,830) 2,574,870 - (3,130,429) 555,559 17, ,613 - Total comprehensive (loss) income for the year (74,876) 537, /16 GJA ANNUAL REPORT
18 Statement OF CASH FLOWS Figures in Rand Note(s) 2016 R 2015 R Cash flows from operating activities Cash used in operations Interest income 6 (72,445) 28, ,055 17,946 Net cash from operating activities (43,937) (481,109) Cash flows from investing activies Purchase of property, plant and equipment Sale of property, plant and equipment 2 2 (47,470) 45,000 (4,700) - Net cash from investing activities (2,470) (4,700) Total cash movement for the year Cash at the beginning of the year (46,407) 395,293 (485,809) 881,102 Total cash at the end of the year 4 348, , /16 GJA ANNUAL REPORT
19 GALLERY Incubatees exhibition Dressing rings Silver pendants Finished Products on display /16 GJA ANNUAL REPORT
20 Leather and Silver Wrist Band Beads: Wrist and Necklace Silver Ear rings Male & Female Brass rings /16 GJA ANNUAL REPORT
21 OUR PARTNERS /16 GJA ANNUAL REPORT
22 NOTES /16 GJA ANNUAL REPORT
23 /16 GJA ANNUAL REPORT
24 For further information please contact: Global Jewellery Academy Tel: / Website: Physical Address: 159 Volta Street Lenasia Ext 9 Johannesburg 1827 Republic of South Africa Postal address: P.O Box Linden Johannesburg 2104 Republic South Africa
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