Group and Company Annual Financial Statements for the … · Group and Company Annual Financial...

Group and Company Annual Financial Statements for the Year ended 31 August 2016

Published on 11 November 2016

The annual financial statements were prepared by Ernes Smit CA(SA)

Group Financial Manager

The financial statements have been audited in compliance with the applicable requirements of S30 of the Companies Act of South Africa

Think Efficient. Realise potential.

EFFICIENT GROUP LIMITED

Group and company annual financial statements for the year ended 31 August 2016

Contents Page

The reports and statements set out below comprise the Efficient Group Limited ("the Group") and company annual financial

statements presented to the shareholders:

Directors' responsibility and approval of annual financial statements 2

Audit and risk committee report 3

Statement of compliance by the company secretary 4

Directors' report 5 - 8

Independent auditor's report 9 - 10

Statements of financial position 11

Statements of comprehensive income 12

Statements of changes in equity 13

Statements of cash flows 14

Significant accounting policies 15 - 26

Notes to the financial statements 27 - 62

The following supplementary information does not form part of the financial statements and is unaudited:

Efficient Group Ltd shareholders analysis 63

1



Directors' report

The directors submit their report for the year ended 31 August 2016.

1 Review of activities

Main business and operations

Operating results

Acquisitions

2 Share capital

During the year under review, the number of shares authorised and in issue remained unchanged.

Number of

shares

'000

Cent per

share

R'000

Authorised:

As at 31 August 2016 361 350 0.000277 1.0000

Issued:

As at 31 August 2016 90 593 0.000277 0.2507

3 Borrowing limitations

+

+

+

In terms of the Memorandum of Incorporation of the company, the directors may exercise all the powers of the company to borrow money, as they

consider appropriate. The following loans were entered by the Group during the 2016 financial year:

During May 2016 Efficient Group Ltd entered into an amortising term loan agreement with Standard Bank South Africa amounting to R9 million to

partly finance the acquisition of the Catnia Building, Bella Rosa, Bellville. During the same month, a further R12 million was borrowed by Efficient

Capital (Pty) Ltd from Standard Bank South Africa subject to a mortgage loan agreement for the remainder of the purchase price.

During May 2015 Efficient Group Ltd utilised a further R5 million of its amortising term loan agreement "Facility B" with Standard Bank South Africa

to supplement the working capital of the Group.

During August 2016 Efficient Group Ltd entered into a revolving loan agreement with Standard Bank South Africa to fund the construction of its new

offices in Dely Road, Hazelwood, Pretoria. The total available facility is R12.6 million of which R3 million has been drawn at year-end.

Efficient Group Limited (registration number 2006/036947/06) is a public company incorporated in the Republic of South Africa. The company's

registered address is 81 Dely Road, Hazelwood, Pretoria, 0081.

The company is the holding company of the Efficient Group subsidiaries. The company's subsidiaries' main activities are that of asset management,

asset administration, asset consulting and offering of financial services.

The financial statements presented on pages 11 to 62 set out fully the financial position, results of operations and cash flows of the Group and

company for the financial year ended 31 August 2016. At the end of the reporting period the Group's current liabilities exceed its current assets.

Management assessed the Group's cash flow forecasts and its access to secured credit, which includes the realisation of net deferred tax assets of

R10 million (2015: R21 million) in the next 12 months. Based on the cash flow forecast and the timing of cash inflows and outflows, management is

of the opinion that the Group will be able to settle its short-term commitments as and when they become due.

The Group posted a net profit after tax of R38 million (2015: R29 million) and the company a loss of R4 million (2015: profit of R11 million).

During the 2016 financial year, the Group acquired 15 (2015: 11) financial advisory client bases from various independent financial advisors for a

total purchase price of R6.4 million (2015: R2.6 million) which will be settled in cash on varying dates based on the respective agreements. These

acquisitions were accounted for as business combinations.

In addition to the above, the Group acquired Saambou Board of Executors (Pty) Ltd (subsequently renamed Efficient Board of Executors (Pty) Ltd), a

dormant company with no identifiable assets and liabilities, at a purchase consideration of Rnil.

5



Directors' report

4 Distribution to shareholders

5 Share incentive scheme

6 Directors

The directors of the company during the year and at the date of this report are as follows:

Date

appointed

Date

resigned

Executive

H Weidhase CEO 2006/11/27

AT De Klerk CFO 2008/03/27

DD Roodt 2006/11/27

RH Walton 2013/08/12

CP Burger 2014/03/07 2016/06/30

Non-executive

SF Booysen* Chairman 2009/09/01

LC Cele* 2010/08/30

L Taylor* 2011/03/15

JA Mabena 2012/08/30

J Rosen* 2013/04/10

AP du Preez 2013/08/04

MM du Preez (alternate to Mr AP du Preez) 2013/08/04

The non-executive directors' contracts do not provide for a fixed-term employment period.

* Independent directors

7 Directors' interest

Direct

'000

Indirect

'000

Total

'000

% Direct

'000

Indirect

'000

Total

'000

%

Ordinary shares

Executive

DD Roodt 5 185 - 5 185 5.72 5 205 - 5 205 5.75

H Weidhase 6 037 - 6 037 6.66 6 037 - 6 037 6.66

AT De Klerk 498 - 498 0.55 618 - 618 0.68

RH Walton - 14 873 14 873 16.42 88 14 236 14 324 15.81

CP Burger - 568 568 0.63 8 192 - 8 192 9.04

Non-executive

SF Booysen - 3 492 3 492 3.86 - 3 492 3 492 3.85

AP du Preez - 6 649 6 649 7.34 - 7 398 7 398 8.17

MM du Preez - 4 004 4 004 4.42 - 3 844 3 844 4.24

J Rosen 12 - 12 0.01 12 - 12 0.01

The beneficial interest in Efficient Group Limited, direct and indirect, of the directors in office at 31 August 2016 and directors who resigned during

the financial year, are as follows:

2016 2015

No changes in the reported interest of the directors in office was recorded since 31 August 2016 and the date of this report.

Dividends of 6.15000 cent per share and 1.58824 cent per share were paid in December 2015 (2014: 2.00000 cent per share) and May 2016

(2015: 5.88235 per share) respectively.

In terms of the share incentive scheme, the share-based payment provision increased by R1 322 000 during the financial year (2015: R808 000). The

adjustment to the provision was recognised in profit or loss.

6



Directors' report

7 Directors' interest (continued)

Direct

'000

Indirect

'000

Total

'000

% Direct

'000

Indirect

'000

Total

'000

%

Ordinary shares associated to

Executive

H Weidhase 2 637 - 2 637 2.91 2 637 - 2 637 2.91

Non-executive

AP du Preez - 251 251 0.28 - 266 266 0.29

SF Booysen - - - - - 13 13 0.01

2014

'000

2015

'000

2016

'000

Closing

Balance

DD Roodt 53 - - 53

H Weidhase 71 - - 71

AT De Klerk 54 - 200 254

Grant price (cent) 200 374 546

8 Directors' interest in contracts

9 Company secretary and professional advice

Business and postal address 81 Dely Road

Hazelwood

Pretoria

0081

Non-vested share appreciation rights

allocated

DD Roodt, H Weidhase and SF Booysen are shareholders of Midnight Storm Investments (Pty) Ltd. The Group rents its Dely Road offices from

Midnight Storm Investments (Pty) Ltd at market related tariffs. A sale agreement was entered into between Midnight Storm Investments (Pty) Ltd

and Efficient Group Ltd for the purchase of the Dely Road offices. All conditions to the agreement have been met and registration of the transfer is

in progress. The property was valued by an independent valuer and purchased at a market related consideration.

All directors have unlimited access to the services of the company secretary, who in turn has access to the appropriate resources in the provision of

this support. All directors are also entitled to seek independent professional advice with regards to the affairs of the company. The secretary of the

company is Mr J Nyahuye, appointed on 1 December 2015.

2016 2015

7

The beneficial interest, direct and indirect, of associates of the directors are as follows:



Directors' report

10 Subsidiaries

Efficient Group Ltd is the ultimate holding company of the following entities:

Ultimate share-holding

Efficient Select (Pty) Ltd 100%

Efficient International Investments (Pty) Ltd* 100%

Boutique Investment Partners (Pty) Ltd 100%

Boutique Collective Investments (RF) (Pty) Ltd 100%

Efficient Financial Services (Pty) Ltd 100%

Efficient Wealth (Pty) Ltd 100%

Naviga Solutions (Pty) Ltd # 100%

Twist Street Securities (Pty) Ltd # 100%

Efficient Fiduciary Services (Pty) Ltd # 100%

Verso Collective Investments (Pty) Ltd # 100%

Efficient Capital (Pty) Ltd 100%

Efficient Asset Finance (Pty) Ltd ˣ 80%

Instit (Pty) Ltd 100%

Midnight Masquerade Investments (Pty) Ltd 100%

Efficient Group Swaziland (Pty) Ltd 51%

Efficient Select Swaziland (Pty) Ltd + 51%

Select Manager (Pty) Ltd 70%

Stead Wealth Management (Pty) Ltd @ 70%

Exceed Asset Management (Pty) Ltd @ 70%

Exceed Private Clients (Pty) Ltd @ 70%

Efficient Board of Executors (Pty) Ltd 51%

Efficient Private Clients (Pty) ltd 100%

* Subsidiary of Efficient Select (Pty) Ltd

ˣ Subsidiary of Efficient Capital (Pty) Ltd

# Subsidiaries of Efficient Wealth (Pty) Ltd

+ Subsidiary of Efficient Group Swaziland (Pty) Ltd

@ Subsidiaries of Select Manager (Pty) Ltd

11 Events after the reporting date

12 Special resolutions

+

+ the directors are authorised to approve that the company provides any direct or indirect financial assistance to any company or corporation that is

related or interrelated, under certain conditions.

No significant events occurred subsequent to the financial year that requires any additional disclosure or adjustments to the financial statements.

On 28 January 2016 the company held its annual general meeting and it was resolved that:

non-executive directors of the company are paid fees for the services rendered as directors of the company and the amounts paid and payable were

approved; and

8



Statements of financial position as at 31 August 2016

Note

2016 2015 2016 2015

R'000 R'000 R'000 R'000

ASSETS

Non-current assets

Property and equipment 2 27 353 4 103 366 355

Goodwill 3 155 050 153 274 - -

Intangible assets 4 132 365 140 965 - -

Investments 5 1 383 1 657 292 923 314 076

Equity accounted investments 6 11 726 10 913 10 502 10 787

Long-term receivables 7 3 436 1 898 895 1 291

Deferred tax 8 12 172 20 081 1 719 1 716

Related party loans 26.1 - - 29 671 -

343 485 332 891 336 076 328 225

Current assets

Related party loans 26.1 - 39 18 963 39 316

Investments 5 6 503 41 931 1 042 1 017

Trade and other receivables 9 79 676 74 255 4 220 1 666

Cash and cash equivalents 10 90 118 53 833 3 200 16 547

Short-term portion of long-term receivables 7 3 741 1 377 174 -

Tax receivable 550 976 - -

180 588 172 411 27 599 58 546

Total assets 524 073 505 302 363 675 386 771

EQUITY AND LIABILITIES

Equity

Share capital and share premium 11 150 325 150 325 263 530 263 530

Treasury shares (440) (389) - -

Accumulated income 72 530 41 982 (24 752) (13 839)

Fair value adjustment reserve 58 (3) - -

Equity attributable to equity holders of the parent 222 473 191 915 238 778 249 691

Non-controlling interest (2 443) (2 420) - -

Total equity 220 030 189 495 238 778 249 691

Non-current liabilities

Long-term liabilities 12 85 465 95 226 70 456 85 937

Deferred tax 8 30 991 33 824 - -

116 456 129 050 70 456 85 937

Current liabilities

Related party loans 26.1 - - - 4 055

Trade and other payables 13 139 547 136 687 21 614 7 814

Short-term portion of long-term liabilities 12 47 847 47 940 32 827 39 274

Tax payable 193 2 130 - -

187 587 186 757 54 441 51 143

Total liabilities 304 043 315 807 124 897 137 080

Total equity and liabilities 524 073 505 302 363 675 386 771

Net asset value per share (cent) 246.28 212.38

Net tangible asset value per share (cent) (30.86) (71.30)

Group Company

11



Statements of comprehensive income for the year ended 31 August 2016

Note

2016 2015 2016 2015

R'000 R'000 R'000 R'000

Revenue 15 879 978 716 179 25 616 20 702

Operating expenses (830 566) (683 599) (22 963) (24 386)

Operating profit/(loss) 16 49 412 32 580 2 653 (3 684)

Dividends received 226 258 21 169 13 442

Finance income 19 13 900 7 126 1 875 1 887

Finance cost 20 (3 630) (2 711) (3 231) (2 710)

Profit on sale of equipment 25 82 - 38

Profit on sale of shares in associate - 2 607 - -

Profit on sale of financial advisory client base - 73 - -

Other (expenses)/income (915) 765 (1 159) -

108 (57) 25 161

Re-measurement of liabilities at fair value through profit or loss (6 589) 267 (4 661) 600

Impairment of intangible asset 21 - (420) - -

Impairment of investment in associate 21 - (869) - (60)

Impairment of investment in subsidiary 21 - - (21 153) -

Share of profits from associates, net of taxation 1 823 1 808 575 -

Profit/(loss) before taxation 54 360 41 509 (3 907) 9 674

Taxation 22 (16 845) (12 207) 4 1 064

Profit/(loss) for the year 37 515 29 302 (3 903) 10 738

Other comprehensive income

Items that may be reclassified subsequently to profit or loss 61 (101) - -

61 (101) -

Total comprehensive income for the year 37 576 29 201 (3 903) 10 738

Profit for the year attributable to

Equity holders of the parent 37 538 30 681

Non-controlling interest (23) (1 379)

37 515 29 302

Total comprehensive income for the year attributable to

Equity holders of the parent 37 599 30 580

Non-controlling interest (23) (1 379)

37 576 29 201

Basic and diluted earnings per share (cent) 23 41.55 33.91

Group Company

Unrealised fair value adjustment of available-for-sale financial assets, net of

taxation

Fair value adjustment of investment designated at fair value through profit or

loss

12



Statements of changes in equity for the year ended 31 August 2016

Group Ordinary

shares and

share

premium

Treasury

shares

Accumulated

income

Fair value

adjustment

reserve

Total equity

attributable

to equity

holders of

the parent

Non-

controlling

interest

Total equity

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Balance at 31 August 2014 150 325 (149) 18 441 98 168 715 (1 041) 167 674

- (240) - - (240) - (240)

Total comprehensive income for the year

- Profit/(loss) - - 30 681 - 30 681 (1 379) 29 302

- Other comprehensive income - - - (101) (101) - (101)

Dividends declared - - (7 140) - (7 140) - (7 140)

Balance at 31 August 2015 150 325 (389) 41 982 (3) 191 915 (2 420) 189 495

- (51) - - (51) - (51)

Total comprehensive income for the year

- Profit/(loss) - - 37 538 - 37 538 (23) 37 515

- Other comprehensive income - - - 61 61 - 61


Balance at 31 August 2016 150 325 (440) 72 530 58 222 473 (2 443) 220 030

Company Ordinary

shares and

share

premium

Treasury

shares

Accumulated

income

Fair value

adjustment

reserve

Total equity

attributable

to equity

holders of

the parent

Non-

controlling

interest

Total

equity

R'000 R'000 R'000 R'000 R'000 R'000

Balance at 31 August 2014 263 530 - (17 437) - 246 093 - 246 093

Total comprehensive income for the year - - 10 738 - 10 738 - 10 738



Total comprehensive income for the year - - (3 903) - (3 903) - (3 903)



Repurchase of company's own equity instruments

Repurchase of company's own equity instruments

Unrealised fair value adjustments to available-for-sale financial assets are recorded in the fair value adjustment reserve in equity through other

comprehensive income. Upon realisation of these fair value adjustments, the same are transferred from the fair value adjustment reserve to

accumulated income through profit or loss.

13



Statements of cash flows for the year ended 31 August 2016

Note

2016 2015 2016 2015

R'000 R'000 R'000 R'000

Cash flows from operating activities

Cash receipts from customers 874 500 698 431 23 005 19 476

Cash paid to suppliers and employees (810 574) (596 017) (9 984) (21 121)

Cash generated by/(utilised from) operations 24.1 63 926 102 414 13 021 (1 645)

Interest received 13 900 7 126 1 875 1 887

Interest paid (3 630) (2 711) (3 231) (2 710)

Dividends received 226 258 21 169 13 029

Dividends received from associate 1 010 863 860 413

Taxation paid 24.2 (15 199) (35 070) - -

Net cash inflow from operating activities 60 233 72 880 33 694 10 974

Cash flows from investing activities

Acquisition and disposal of businesses 24.3 (1 967) (12 239) - (15 000)

(Decrease)/increase in related party loans - - (9 317) -

(Increase)/decrease in long-term receivable (3 751) 1 727 222 1 123

Acquisition of intangible assets (1 217) (7 048) - -

Disposal/(acquisition) of investments 35 844 (37 225) - 2 723

Proceeds on sale of investment in associate - 8 743 - 689

Proceeds on the disposal of equipment 117 160 17 52

Acquisition of property (23 984) - - -

Acquisition of equipment (1 133) (2 826) (309) (305)

Net cash inflow/(outflow) from investing activities 3 909 (48 708) (9 387) (10 718)

Cash flows from financing activities

Increase/(decrease) in related party loans 39 (39) (4 056) 18 751

Proceeds from long-term liabilities 29 000 10 000 17 000 10 000

Repayment of long-term liabilities (14 881) (8 483) (13 016) (5 984)

(Repayment of)/proceeds from vendor finance (35 025) 1 966 (30 572) -

Repayment of loans from non-controlling shareholders of subsidiaries - (195) - -

Dividends paid (6 990) (7 140) (7 010) (7 140)

Net cash (outflow)/inflow from financing activities (27 857) (3 891) (37 654) 15 627

Total cash and cash equivalents movement for the year 36 285 20 281 (13 347) 15 883

Total cash and cash equivalents at the beginning of the year 53 833 33 552 16 547 664

Total cash and cash equivalents at the end of the year 90 118 53 833 3 200 16 547

Group Company

14



Significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies

have been applied consistently to all the years presented, excluding the accounting policies for new standards that are

effective for the first time as referred to in the notes to the financial statements where applicable.

1 Presentation of financial Statements

The Group and company financial statements of Efficient Group Limited ("the Group") have been prepared in accordance

with the International Financial Reporting Standards (IFRS) and SAICA Financial Reporting Guides as issued by the

Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards

Council and the requirements of the Companies Act of South Africa. The financial statements are prepared on a going

concern basis using the historical cost convention, except for the fair value adjustment in relation to available-for-sale

assets, financial assets at fair value and long-term liabilities at fair value. The financial statements are presented in South

African Rand.

1.1 Standards in issue, not yet effective

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning on or

after 1 January 2016, and have not been applied in preparing these Group and company financial statements. Those which

may be relevant to the Group and company are set out below. The Group and company do not plan to adopt these

standards early. These will be adopted in the period that they become mandatory unless otherwise indicated:

Effective for the financial year commencing 1 September 2016

+ IFRS 14 Regulatory Deferral Accounts

+ Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11)

+ Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)+ Disclosure Initiative (Amendments to IAS 1)

+ Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)+ Annual improvements to IFRSs 2012-2014 cycle - various standards


+ Disclosure Initiatives ( Amendments to IAS 7)

+ Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12)


+ IFRS 15 Revenue from Contracts with Customers

+ IFRS 9 Financial Instruments

+ Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)


+ IFRS 16 Leases

The above standards are not expected to have a material impact on the financial statements, except for the potential impact

of IFRS 9, IFRS 15 and IFRS 16 that will be adopted on the effective dates. More information on these standards and their

potential impact follows.

IFRS 15 Revenue from contracts with customers

This standard replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15

Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC-31 Revenue – Barter of

Transactions Involving Advertising Services.

The standard contains a single model that applies to contracts with customers and two approaches to recognising revenue:

at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether,

how much and when revenue is recognised.

This new standard might have a significant impact on the Group, which will include a possible change in the timing of when

revenue is recognised, especially in the Financial Services segment of the Group. The Group is currently in the process of

performing a more detailed assessment of the impact of this standard on the Group and will provide more information

closer to the standard's effective date.

15




1 Presentation of financial Statements (continued)

1.1 Standards in issue, not yet effective (continued)

IFRS 9 Financial Instruments

On 24 July 2014, the IASB issued the final IFRS 9 Financial Instruments Standard, which replaces earlier versions of IFRS 9

and completes the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement.

This standard will impact the Group, which will include changes in the measurement bases of the Group’s financial assets to

amortised cost, fair value through other comprehensive income or fair value through profit or loss. Even though these

measurement categories are similar to IAS 39, the criteria for classification into these categories are significantly different. In

addition, the IFRS 9 impairment model has been changed from an “incurred loss” model from IAS 39 to an “expected credit

loss” model, which may increase the provision for bad debts recognised in the Group.

IFRS 16 Leases

IFRS 16 was published in January 2016. It sets out the principles for the recognition, measurement, presentation and

disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 replaces the

previous leases Standard, IAS 17 Leases, and related Interpretations. IFRS 16 has one model for lessees which will result in

almost all leases being included on the Statement of Financial position. No significant changes have been included for

lessors.

The standard is effective for annual periods beginning on or after 1 January 2019, with early adoption permitted only if the

entity also adopts IFRS 15. The transitional requirements are different for lessees and lessors. The Group and company are

assessing the potential impact on the financial statements resulting from the application of IFRS 16 and will provide more

information closer to the standard's effective date.

1.2 Basis of consolidation

Business combinations

The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The

consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired.

Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss

immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such

amounts are generally recognised in profit or loss.

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,

variable returns from its involvement with the entity and has the ability to affect those returns through its power over the

entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which

control commences until the date on which control ceases.

16




1.2 Basis of consolidation (continued)

Forward purchase agreements

There is diversity in practice as to how a forward purchase with non-controlling interest ("NCI") is accounted for. While it is

clear that having a forward with NCI gives rise to a liability, what is not clear is what impact the recognition of a liability has

on non-controlling interests. There is extensive published guidance which indicates that, given the lack of guidance in IFRS,

where the NCI has present access to returns, there is an accounting policy choice to use either:

+ the “present access method” in which NCI continue to be recognised. NCI continue to be recognised because the non-

controlling shareholders still have present access to the returns associated with the underlying ownership interests;

therefore, the debit entry is to "other" equity; or

+ the “anticipated acquisition method” in which the NCI is derecognised. The contract is accounted for as an anticipated

acquisition of the underlying NCI - i.e. as if the forward had been satisfied by the non-controlling shareholders.

The Group decided to use the anticipated acquisition method as the accounting policy choice as it best represents the

intention of the Group to exit the NCI shareholders.

Where a minority shareholder has the right to require the Group to acquire the shares of a subsidiary, the Group records a

financial liability for its obligation to pay the forward price, and de-recognises the related non-controlling interest. This

recognition occurs when the forward contract is signed.

Where the forward is entered into as part of a business combination, the forward is accounted for as a financial liability and

is recognised as a component of the consideration transferred. No non-controlling interest is recorded.

Subsequent to this recognition, the forward liability is re-measured as a financial liability at fair value through profit or loss,

with changes in the carrying amount of the liability recorded in profit or loss.

When the forward is exercised, the amount paid by the Group will be recognised as a reduction in the forward liability.

Structured entities

A structured entity shall be consolidated when the substance of the relationship between the Group and the structured

entity indicates that the structured entity is controlled by the Group.

Non-controlling interests ("NCIs")

NCIs are measured at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes

in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

Investments in subsidiaries are carried at cost less impairment adjustments in the company financial statements of the

parent company.

Interest in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial

and operating policies.

Interests in associates are accounted for using the equity method. They are initially recognised at cost, which includes

transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the

changes in net assets of the equity accounted investees less any impairments, until the date on which significant influence

ceases. The Group’s share of the profit or loss and other comprehensive income ("OCI") of equity accounted investees is

recognised in profit or loss and OCI respectively.

17




1.2 Basis of consolidation (continued)

Interest in associates (continued)

When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other

unsecured receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on

behalf of the associate.

With effect from 1 September 2016, the Group and its subsidiaries early adopted the amendments to IAS 27 (Equity Method

in Separate Financial Statements). As a result, investments in associates are accounted for using the equity method in the

company financial statements of the parent company. Prior to this date, investments in associates were carried at cost less

impairment adjustments in the company financial statements.

Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are

eliminated.

1.3 Use of judgements and estimates

The preparation of the Group and company annual financial statements necessitates the use of estimates, assumptions and

judgements that affect the reported amounts of assets and liabilities at the reporting date, as well as the reported income

and expenses for the reporting periods. Although estimates are based on management's best knowledge and judgment of

current facts as at the reporting date, the actual outcome may differ from these estimates. Estimates and underlying

assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts

recognised in the consolidated financial statements is included in the following notes:

+ Notes 5 and 6 - Consolidation: Whether the Group has de facto control or significant influence over an investee

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment

in the year ending 31 August 2016 is included in the following notes:

+ Notes 3 and 21 - Impairment testing: Key assumptions underlying recoverable amounts

+ Note 8 - Recognition of deferred tax assets: Availability of future taxable profit against which tax losses carried forward can

be used

+ Note 12 - Remeasurement of forward purchse liabilities: Key assumptions and variables underlying calculation of the current

dividend liability obligation

Measurement of fair value

A number of the Group's accounting policies and disclosures require the measurement of fair values, for both financial and

non-financial assets and liabilities.

The Group has an established control framework with respect to the measurement of fair values. Management has overall

responsibility for overseeing all significant fair value measurement.

Management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such

as broker quotes or pricing services, is used to measure fair values, management assesses the evidence obtained from the

third parties to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair

value hierarchy in which such valuations should be classified. Significant valuation issues are reported to the Group audit

committee.

18




1.3 Use of judgements and estimates (continued)

Measurement of fair value (continued)

When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values

are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows

+ Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities

+ Level 2: Inputs, other than quoted prices included in level 1, that are observable for assets or liabilities, either directly (i.e. as

prices) or indirectly (i.e. derived from prices)

+ Level 3: Inputs for assets or liabilities that are not based on observable market data

If the inputs used to measure the fair value of an asset or liability might be categorised in different levels of the fair value

hierarchy, then the fair value measurement is categorised in its entirety in the same level of fair value hierarchy as the

lowest level input that is significant to the entire measurement.

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which

the change has occurred.

Further information about the assumptions made and inputs used in measuring fair values is included in the following

notes:

+ Note 5 - Investments

+ Note 7 - Long-term receivables

+ Note 12 - Long-term liabilities

+ Note 28 - Share incentive schemes

+ Note 32 - Analysis of financial assets and liabilities

1.4 Goodwill

Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses and tested for

impairment at least annually.

1.5 Intangible assets

Internally developed intangible assets

Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is

technically and commercially feasible, future economic benefits are probable and the group intends to and has sufficient

resources to complete development and to use or sell the asset. Subsequent to initial recognition, development expenditure

is measured at cost less accumulated amortisation and any accumulated impairment losses.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to

which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in

profit or loss as incurred.

Expenditure on research activities is recognised in profit or loss as incurred.

Acquired through business combinations

Intangible assets acquired through business combinations include customer and marketing related intangible assets, and

have finite useful lives. These intangible assets are measured at cost less accumulated amortisation and any accumulated

impairment losses.

19




1.5 Intangible assets (continued)

Amortisation

Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line

method over their estimated useful lives, and is recognised in profit or loss.

The estimated useful lives in years for current and comparative periods are as follows

+ Trade names 3 - 20

+ Customer contracts and customer relationships 10 - 20

+ Internally developed computer software 4 - 7

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

1.6 Property and equipment

Recognition and measurement

Items of property and equipment (excluding buildings) are measured at cost less accumulated depreciation and any

accumulated impairment losses. Buildings are recognised at cost and subsequently carried at a revalued amount being its

fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated

impairment losses.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the

expenditure will flow to the Group.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit

or loss.

Depreciation

Depreciation is calculated to write off the cost of items of property and equipment less their estimated residual values using

the straight-line method over their estimated useful lives, and is generally recognised in profit or loss. Land and assets under

construction are not depreciated.

The estimated useful lives in years of property, plant and equipment for current and comparative periods are as follows

Furniture, fixtures and office equipment 3 - 6

Computer equipment 3

Leasehold improvements 5

Buildings 30

Other assets (electricity generators) 5

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

1.7 Share capital

Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised

as a deduction from equity, net of income tax.

Repurchase and reissue of ordinary shares (treasury shares)

When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly

attributable costs, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are

presented in the treasury share reserve. When treasury shares are subsequently sold or reissued, the amount received is

recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share

premium.

20




1.8 Financial instruments

The Group classifies financial assets and liabilities into the following categories at initial recognition:

+ Financial assets at fair value through profit or loss

+ Available-for-sale financial assets

+ Loans and receivables

+ Financial liabilities at fair value through profit or loss

+ Other financial liabilities

Recognition and derecognition

The Group initially recognises loans and receivables and debt securities issued on the date when they are originated. All

other financial assets and financial liabilities are initially recognised on the trade date when the entity becomes a party to

the contractual provisions of the instrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers

the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of

ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards

of ownership and does not retain control over the transferred asset. Any interest in such derecognised financial assets that

is created or retained by the group is recognised as a separate asset or liability.

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only

when, the Group currently has a legally enforceable right to offset the amounts and intends either to settle them on a net

basis or to realise the asset and settle the liability simultaneously.

Measurement

Financial assets at fair value through profit or loss

A financial asset is classified as at fair value through profit or loss if it is classified as held-for-trading or is designated as such

on initial recognition. Directly attributable transaction costs are recognised in profit or loss as incurred. Financial assets at

fair value through profit or loss are measured at fair value and changes therein, including any interest or dividend income,

are recognised in profit or loss.

Available-for-sale financial assets

These assets are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial

recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency

differences on debt instruments, are recognised in OCI and accumulated in the fair value reserve. When these assets are

derecognised, the gain or loss accumulated in equity is reclassified to profit or loss.

Loans and receivables

These assets are initially measured at fair value plus any directly attributable transaction costs and include loans to related

parties, trade and other receivables and long-term receivables. Subsequent to initial recognition, they are measured at

amortised cost using the effective interest method.

Trade receivables are presented net of an allowance for doubtful debts which is raised when indicators of impairment

suggest that the receivable might not be collected. Movements in the allowance are recognised in profit or loss and

uncollectable receivables are written off against the allowance. Recoveries of amounts previously written off are credited to

profit or loss.

21




1.8 Financial instruments (continued)

Financial liabilities at fair value through profit or loss

A financial liability is classified as at fair value through profit or loss if it is classified as held-for-trading or is designated as

such on initial recognition. Directly attributable transaction costs are recognised in profit or loss as incurred. Financial

liabilities at fair value through profit or loss are measured at fair value and changes therein, including any interest expense,

are recognised in profit or loss.

Other financial liabilities

Other financial liabilities are initially measured at fair value less any directly attributable transaction costs. Subsequent to

initial recognition, these liabilities are measured at amortised cost using the effective interest method.

Where the carrying value of financial instruments approximates their fair values and where the effects of discounting are

not considered to be material, no such discounting is applied.

The Group holds no derivative financial instruments.

1.9 Impairment

Financial assets

Financial assets not classified as at fair value through profit or loss, including an interest in an equity accounted investee, are

assessed at each reporting date to determine whether there is objective evidence of impairment.

Objective evidence that financial assets are impaired includes

+ Default or delinquency by a debtor

+ Restructuring of an amount due to the Group on terms that the Group would not consider otherwise

+ Indications that a debtor or issuer will enter bankruptcy

+ Adverse changes in the payment status of borrowers or issuers

+ The disappearance of an active market for a security because of financial difficulties

+ Observable data indicating that there is a measurable decrease in the expected cash flows from a

group of financial assets

Financial assets measured at amortised cost

The group considers evidence of impairment for these assets at both an individual asset and a collective level. All

individually significant assets are individually assessed for impairment. Those found not to be impaired are then collectively

assessed for any impairment that has been incurred but not yet individually identified. Assets that are not individually

significant are collectively assessed for impairment. Collective assessment is carried out by grouping together assets with

similar risk characteristics.

In assessing collective impairment, the group uses historical information on the timing of recoveries and the amount of loss

incurred, and makes an adjustment if current economic and credit conditions are such that the actual losses are likely to be

greater or lesser than suggested by historical trends.

An impairment loss is calculated as the difference between an asset’s carrying amount and the present value of the

estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss

and reflected in an allowance account. When the Group considers that there are no realistic prospects of recovery of the

asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can

be related objectively to an event occurring after the impairment was recognised, then the previously recognised

impairment loss is reversed

through profit or loss.

22




1.9 Impairment (continued)

Financial assets (continued)

Available-for-sale financial assets

Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair

value reserve to profit or loss. The amount reclassified is the difference between the acquisition cost (net of any principal

repayment and amortisation) and the current fair value, less any impairment loss previously recognised in profit or loss. If

the fair value of an impaired available-for-sale debt security subsequently increases and the increase can be related

objectively to an event occurring after the impairment loss was recognised, then the impairment loss is reversed through

profit or loss. Impairment losses recognised in profit or loss for an investment in an equity instrument classified as

available-for-sale are not reversed through profit or loss.

Equity-accounted investees

An impairment loss in respect of an equity-accounted investee is measured by comparing the recoverable amount of the

investment with its carrying amount. An impairment loss is recognised in profit or loss, and is reversed if there has been a

favourable change in the estimates used to determine the recoverable amount.

Non-financial assets

At each reporting date, the group reviews the carrying amounts of its non-financial assets (other than deferred tax assets) to

determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount

is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from

continuing use that are largely independent of the cash inflows of other assets or cash generating units ("CGUs"). Goodwill

arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies

of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is

based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects

current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill

allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent

that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of

depreciation or amortisation, if no impairment loss had been recognised.

1.10 Leases

At inception of an arrangement, the Group determines whether the arrangement is or contains a lease.

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.

Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

23




1.11 Income tax

The Group's Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent

that it relates to a business combination, or items recognised directly in equity or in OCI.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment

to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best

estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is

measured using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if certain criteria are met.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for

financial reporting purposes, and the amounts used for taxation purposes.

Deferred tax is not recognised for temporary differences on the initial recognition of assets or liabilities in a transaction that

is not a business combination and that affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the

extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits

are determined based on business plans for individual subsidiaries in the Group. Deferred tax assets are reviewed at each

reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such

reductions are reversed when the probability of future taxable profits improves.

Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become

probable that future taxable profits will be available against which they can be used.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using

tax rates enacted or substantively enacted at the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the group

expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if certain criteria are met.

1.12 Employee benefits

Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for an amount

expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service

provided by the employee and the obligation can be estimated reliably. These liabilities include provisions for profit sharing

and other incentives.

The expected cost of compensated absences is recognised as an expense as employees render services that increase their

entitlement or, in the case of non-accumulating absences, when the absence occurs.

Obligations for contributions to defined contribution retirement benefit plans are expensed as the related service is

provided.

24




1.12 Employee benefits (continued)

Share-based payment arrangements

The fair value of the amount payable to employees in respect of share appreciation rights ("SARs"), which are settled in

cash, is recognised as an expense with a corresponding increase in liabilities, over the period during which the employees

become unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date

based on the fair value of the SARs. Any changes in the liability are recognised in profit or loss.

1.13 Provisions and contingent assets and liabilities

Provisions are recognised when the company has a present obligation as a result of a past event, it is probable that an

outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be

made of the obligation.

Provisions are calculated by discounting the expected future cash flows at a pre-tax rate that reflects current market

assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as

finance cost.

Contingent assets and contingent liabilities are not recognised on the statement of financial position, but are separately

disclosed in the notes to the financial statements.

1.14 Revenue

Revenue comprises

+ administration fees from company subsidiaries

+ fixed and performance fees charged for portfolio management services

+ fees for asset and liability administration

+ commission received through the provision of financial services

+ rental income from property

Performance fee revenue is recognised when certain targets are achieved in accordance with service level agreements with

clients. All other revenue is recognised when the related service is provided.

Revenue is measured at the fair value of the consideration received or receivable.

1.15 Finance income and finance costs

The Group’s finance income and finance costs comprise:

+ interest earned/payable on bank balances

+ interest earned on portfolio management services

+ interest paid on borrowings

Finance income and costs are recognised using the effective interest method.

1.16 Dividends

Dividends to be paid are recognised in the statement of changes in equity when when they declared by the Group. Cash

dividend payments are disclosed as cash flows from financing activities in the statement of cash flows.

25




1.17 Segment reporting

Operating segments have been identified using the management approach as required by IFRS 8, in terms of which segment

classification is determined according to the basis on which the chief operating decision maker reviews the operating

results. The group operates in the following business segments

+ Financial Services: The core business entails the delivery of comprehensive financial planning and investment management

expertise for the benefit of individual and corporate clients

+ Services and Solutions: This division creates products and services for the groups distribution network. The products and

services offered are independent investment solutions and fiduciary services

+ Investments: Asset management and administration services are offered through a range of unit trust funds, funds of funds,

structured solutions and individual share portfolios

+ Other: Activities by the parent company, the Efficient Group Share Trust and consolidation entries.

1.18 Net asset value per share and net tangible asset value per share

Net asset value per share is calculated as the total assets of the group attributable to the equity holders of the parent, less

the total liabilities of the group attributable to the equity holders of the parent ("net asset value"), divided by the total

ordinary shares issued by the Group at the reporting date, after deduction of the total ordinary treasury shares held by the

group at the reporting date ("net ordinary shares issued"). Net tangible asset value per share is calculated as the net asset

value attributable to the equity holders of the parent at the reporting date, less goodwill and intangible assets, plus

deferred tax liabilities related to intangible assets, divided by the net ordinary shares issued at the reporting date.

1.19 Changes in accounting policies

The amendments to IAS 27 (Equity Method in Separate Financial Statements) have been early adopted by the Group and its

subsidiaries with effect from 1 September 2015. As a result, investments in associates are accounted for using the equity

method in the company financial statements of the holding company. Prior to this date, investments in associates were

carried at cost less impairment adjustments in the company financial statements. As the retrospective restatement does not

have a material effect on the 2015 financial year or on information in the statement of financial position at the beginning of

the 2015 financial year, a third statement of financial position as at the beginning of this period is not presented.

The group has adopted no other standards, amendments or requirements not yet effective.

26



Notes to the financial statements for the year ended 31 August 2016

2016 2015 2016 2015

R'000 R'000 R'000 R'000

2 Property and equipment

Group - August 2016

Cost

Accumulated

depreciation

Carrying

value

R'000 R'000 R'000

Land and buildings 21 096 - 21 096

Assets under construction 2 888 - 2 888

Furniture, fixtures and office equipment 3 815 (2 748) 1 067

Computer equipment 5 594 (4 304) 1 290

Leasehold improvements 1 945 (933) 1 012

Other assets - - -

Total 35 338 (7 985) 27 353

Group - August 2015

Cost

Accumulated

depreciation

Carrying

value

R'000 R'000 R'000

Land and buildings - - -

Assets under construction - - -

Furniture, fixtures and office equipment 4 899 (3 463) 1 436

Computer equipment 6 935 (5 570) 1 365

Leasehold improvements 1 945 (643) 1 302

Other assets 247 (247) -

Total 14 026 (9 923) 4 103

Company - August 2016

Cost

Accumulated

depreciation

Carrying

value

R'000 R'000 R'000

Furniture, fixtures and office equipment 462 (444) 18

Computer equipment 1 352 (1 004) 348

Leasehold improvements 497 (497) -


Total 2 517 (2 151) 366


Cost

Accumulated

depreciation

Carrying

value

R'000 R'000 R'000

Furniture, fixtures and office equipment 734 (679) 55

Computer equipment 1 640 (1 340) 300

Leasehold improvements 497 (497) -


Total 2 881 (2 526) 355

Group Company

27




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

2 Property and equipment (continued)

Reconciliation of property and equipment

Opening

balance Disposals

Acquired

through

business

combination Additions Depreciation

Closing

balance

R'000 R'000 R'000 R'000 R'000 R'000

Land and buildings - - - 21 096 - 21 096

Assets under construction - - - 2 888 - 2 888

Furniture, fixtures and office equipment 1 436 (32) - 135 (478) 1 061

Computer equipment 1 365 (60) - 998 (1 007) 1 296

Leasehold improvements 1 302 - - - (290) 1 012

Other assets - - - - - -

Total 4 103 (92) - 25 117 (1 775) 27 353

Opening

balance Disposals

Acquired

through

business


Closing

balance

R'000 R'000 R'000 R'000 R'000 R'000

Land and buildings - - - - - -

Assets under construction - - - - - -

Furniture, fixtures and office equipment 933 (39) 124 841 (423) 1 436

Computer equipment 1 473 (39) 44 821 (934) 1 365

Leasehold improvements 250 - - 1 149 (97) 1 302

Other assets 12 - - 15 (27) -

Total 2 668 (78) 168 2 826 (1 481) 4 103

Opening

balance Disposals

Acquired

through

business


Closing

balance

R'000 R'000 R'000 R'000 R'000 R'000

Furniture, fixtures and office equipment 54 (7) - 22 (51) 18

Computer equipment 301 (10) - 287 (230) 348

Leasehold improvements - - - - - -

Other assets - - - - - -

Total 355 (17) - 309 (281) 366

Group - August 2016

Group - August 2015


28




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

2 Property and equipment (continued)

Opening

balance Disposals

Acquired

through

business


Closing

balance

R'000 R'000 R'000 R'000 R'000 R'000

Furniture, fixtures and office equipment 70 - - 97 (113) 54

Computer equipment 280 (14) - 208 (173) 301

Leasehold improvements - - - - - -

Other assets 2 - - - (2) -

Total 352 (14) - 305 (288) 355

3 Goodwill

Recognised on acquisition of business combinations. 155 050 153 274

Impairment testing for cash-generating units containing goodwill:

The aggregate carrying amounts of goodwill allocated to each cash generating unit are as follows

Efficient Financial Services (Pty) Ltd 13 051 11 275

Efficient Select (Pty) Ltd 8 369 8 369

Efficient Wealth (Pty) Ltd 17 590 47 264

Naviga Solutions (Pty) Ltd 29 674 -

Select Manager (Pty) Ltd 65 166 65 166

Stead Wealth Management (Pty) Ltd 15 112 15 112

Exceed Asset Management (Pty) Ltd and Exceed Private Clients (Pty) Ltd 6 088 6 088

155 050 153 274

Reconciliation of goodwill

Opening balance 153 274 66 255

Acquisitions

- Independent financial advisory client bases 1 776 653

- Select Manager (Pty) Ltd group of companies - 86 366

Closing balance 155 050 153 274


On 27 May 2016, the Group acquired sections 35 to 43 in the sectional title scheme known as Bella Rosa One, Bellville, City of Cape Town ("Catnia

building") for a purchase price of R21.0 million. The property is carried under the revaluation model and its carrying amount at year-end

approximates what it would have been under the cost model.

During July 2016, the Group started development of its new office building in Hazelwood, Pretoria. At 31 August 2016, the Group had a remaining

contractual commitment to acquire property and construct the buildings amounting to R19.8 million.

At year-end, property with a carrying value of R21.1 million (2015: Rnil) was pledged as security for bank borrowings (refer to note 12).

A register containing the information required by paragraph 25(3) of Part C of Chapter 2 of the Companies Regulations 2011 is available for

inspection at the registered office of the company and its subsidiaries.

For the purpose of impairment testing, goodwill is allocated to cash generating units which represents the lowest level within the Group at which

the goodwill is monitored for internal management purposes.

29




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

3 Goodwill (continued)

+ The relationship between the discount rate and the terminal growth rate

+ The forecast period

+ Nature of the factors affecting growth

+ Historical growth

+ Peer comparison and market norms

Efficient Financial Services (Pty) Ltd

Efficient Select (Pty) Ltd

A key estimate used in Group goodwill and investment impairment testing calculations is the expected growth in future cash flows beyond the

projection period (terminal growth rate). Management considered the following factors and found 4.5% (2015: 4.0%) to be a more appropriate

growth rate to use in these calculations:

The recoverable amount of Efficient Financial Services has been based on a value in use calculation. The calculation uses pre-tax cash flow

projections based on financial budgets approved by management covering a five-year period, and a pre-tax discount rate of 24.9% (2015: 24.6%).

Cash flows beyond that five-year period have been extrapolated using a steady 4.5% (2015: 4.0%) growth rate. This growth rate does not exceed

the long-term average rate for the market in which the company operates.

The key assumptions used in the value in use calculations are the amount of assets under advise, number of independent advisors and average

income per advisor. Values assigned to key assumptions reflect past experience, increased for expected efficiency improvements. Management

believes that any reasonable possible change in key assumptions on which the recoverable amount is based would not cause Efficient Financial

Services' carrying amount to exceed its recoverable amount.

The carrying amount of the unit was determined to be lower than the recoverable amount and no impairment loss was recognised (2015: Rnil).

The recoverable amount of Efficient Select has been based on a value in use calculation. The calculation uses pre-tax cash flow projections based

on financial budgets approved by management covering a five-year period, and a pre-tax discount rate of 27.0% (2015: 27.7%). Cash flows beyond

that five-year period have been extrapolated using a steady 4.5% (2015: 4.0%) growth rate. This growth rate does not exceed the long- term

average rate for the market in which the company operates.

The key assumptions used in the value in use calculations are the amount of assets under management and the portfolio performance relative to

the benchmarks. Values assigned to key assumptions reflect past experience, increased for expected efficiency improvements. Management

believes that any reasonable possible change in key assumptions on which the recoverable amount is based would not cause Efficient Select's

carrying amount to exceed its recoverable amount.


The Efficient Wealth (Pty) Ltd group of companies were reassessed and Efficient Wealth (Pty) Ltd and Naviga Solutions (Pty) Ltd were identified as

separate cash generating units for goodwill allocation and impairment testing.

30




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company


Efficient Wealth (Pty) Ltd

Naviga Solutions (Pty) Ltd

Select Manager (Pty) Ltd

The recoverable amounts of Efficient Wealth (Pty) Ltd have been based on value in use calculations. The calculations use pre-tax cash flow




The key assumptions used in the value in use calculations are the amount of assets under management and advise, as well as portfolio

performances relative to applicable benchmarks. Values assigned to key assumptions reflect past experience, increased for expected efficiency

improvements. Management believes that any reasonable possible change in key assumptions on which the recoverable amount is based would

not cause the Efficient Wealth group's carrying amount to exceed its recoverable amount.


The recoverable amounts of Naviga Solutions (Pty) Ltd have been based on value in use calculations. The calculations use pre-tax cash flow




The key assumptions used in the value in use calculations are the amount of assets under management and advise, as well as portfolio

performances relative to applicable benchmarks. Values assigned to key assumptions reflect past experience, increased for expected efficiency

improvements. Management believes that any reasonable possible change in key assumptions on which the recoverable amount is based would

not cause the Efficient Wealth group's carrying amount to exceed its recoverable amount.


The recoverable amount of Select Manager (Pty) Ltd has been based on a value in use calculation. The calculation uses pre-tax cash flow

projections based on financial budgets and forecasts approved by management covering a five-year (2015: ten-year) period, and a pre-tax discount

rate of 23.7% (2015: 24.6%). Cash flows beyond the five-year period have been extrapolated using a steady 4.5% (2015: 4.0%) growth rate. This

growth rate does not exceed the long-term average rate for the market in which the company operates.

The key assumptions used in the value in use calculations are the amount of assets under management and advise, and the portfolio performance

relative to the benchmarks. Values assigned to key assumptions reflect past experience, increased for expected efficiency improvements.

Management believes that any reasonable possible change in key assumptions on which the recoverable amount is based would not cause the

Select Manager group's carrying amount to exceed its recoverable amount.


31




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company


Stead Wealth Management (Pty) Ltd

Exceed Asset Management (Pty) Ltd and Exceed Private Clients (Pty) Ltd

The recoverable amount of Stead Wealth Management (Pty) Ltd has been based on a value in use calculation. The calculation uses pre-tax cash

flow projections based on financial budgets and forecasts approved by management covering a five-year (2015: ten-year) period, and a pre-tax

discount rate of 23.4% (2015: 24.6%). Cash flows beyond the five-year period have been extrapolated using a steady 4.5% (2015: 4.0%) growth

rate. This growth rate does not exceed the long-term average rate for the market in which the company operates.






The recoverable amount of Exceed Asset Management (Pty) Ltd and Exceed Private Clients (Pty) Ltd has been based on a value in use calculation.

The calculation uses pre-tax cash flow projections based on financial budgets and forecasts approved by management covering a five-year (2015:

ten-year) period, and a pre-tax discount rate of 23.5% (2015: 24.6%). Cash flows beyond the five-year period have been extrapolated using a

steady 4.5% (2015: 4.0%) growth rate. This growth rate does not exceed the long-term average rate for the market in which the company

operates.






The initial forecast period used in the impairment testing calculations of Select Manager, Stead Wealth Management, Exceed Asset Management

and Exceed Private Clients was reduced from ten years used in the prior financial year to five years in the current financial year. The Select

Manager group of companies has been part of the Group for the full financial year and are integrated in Group processes and activities, including

the Group budgeting and year-end reporting processes. Therefore, management considers a five year initial forecast period appropriate.

During the 2015 financial year, the Efficient Funds of Funds were transferred from Efficient Select to Naviga. As a result of this transaction,

intangible assets and goodwill related to the Efficient Funds of Funds, with carrying amounts of R2 764 000 and R4 906 000 respectively, were

transferred from Efficient Select to the Efficient Wealth group.

32




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

4 Intangible assets

Group - August 2016

Cost

Accumulated

amortisation

and

impairments

Carrying

value

R'000 R'000 R'000

Trade names 5 902 (3 877) 2 025

Customer contracts and customer relationships 176 029 (52 185) 123 844

Computer software 8 672 (2 176) 6 496

Total 190 603 (58 238) 132 365

Group - August 2015

Cost

Accumulated

amortisation

and

impairments

Carrying

value

R'000 R'000 R'000

Trade names 5 902 (2 674) 3 228

Customer contracts and customer relationships 169 631 (38 710) 130 921

Computer software 7 455 (639) 6 816

Total 182 988 (42 023) 140 965

Reconciliation of intangible assets

Group - August 2016

Opening

balance Impairments Disposals

Acquired

through

business

combination Acquisitions

Amortisation

Closing

balance

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Trade names 3 228 - - - - (1 203) 2 025

130 921 - - 6 398 - (13 475) 123 844

Computer software 6 816 - - - 1 217 (1 537) 6 496

Total 140 965 - - 6 398 1 217 (16 215) 132 365

Customer contracts and customer

relationships

33




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

4 Intangible assets (continued)

Group - August 2015

Opening

balance Impairments Disposals

Acquired

through

business

combination Acquisitions

Amortisation

Closing

balance

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Trade names 3 636 - - 790 - (1 198) 3 228

99 001 (420) (275) 43 404 - (10 789) 130 921

Computer software - - - 319 7 048 (551) 6 816

Total 102 637 (420) (275) 44 513 7 048 (12 538) 140 965

5 Investments

5.1 Investments in subsidiaries

Principal

place of

business Ownership interest

2016 2015

Efficient Group Ltd Ultimate holding company RSA 100% 100%

Efficient Select (Pty) Ltd Subsidiary of Efficient Group RSA 100% 100%

Efficient International Investments (Pty) Ltd Subsidiary of Efficient Select RSA 100% 100%

Boutique Collective Investments (RF) (Pty) Ltd Subsidiary of Efficient Group RSA 100% 100%

Boutique Investment Partners (Pty) Ltd Subsidiary of Efficient Group RSA 100% 100%

Efficient Capital (Pty) Ltd Subsidiary of Efficient Group RSA 100% 100%

Efficient Asset Finance (Pty) Ltd Subsidiary of Efficient Capital RSA 80% 80%

Efficient Wealth (Pty) Ltd Subsidiary of Efficient Group RSA 100% 100%

Naviga Solutions (Pty) Ltd Subsidiary of Efficient Wealth RSA 100% 100%

Twist Street Securities (Pty) Ltd Subsidiary of Efficient Wealth RSA 100% 100%

Efficient Fiduciary Services (Pty) Ltd Subsidiary of Efficient Wealth RSA 100% 100%

Verso Collective Investments (Pty) Ltd Subsidiary of Naviga Solutions RSA 100% 100%

Efficient Group Swaziland (Pty) Ltd Subsidiary of Efficient Group SZL 51% 51%

Efficient Select Swaziland (Pty) Ltd Subsidiary of Efficient Group Swaziland SZL 51% 51%

Efficient Financial Services (Pty) Ltd Subsidiary of Efficient Group RSA 100% 100%

Midnight Masquerade Investments (Pty) Ltd Subsidiary of Efficient Group RSA 100% 100%

Select Manager (Pty) Ltd Subsidiary of Efficient Group RSA 70% 70%

Stead Wealth Management (Pty) Ltd Subsidiary of Select Manager RSA 70% 70%

Exceed Asset Management (Pty) Ltd Subsidiary of Select Manager RSA 70% 70%

Exceed Private Clients (Pty) Ltd Subsidiary of Select Manager RSA 100% -

Instit (Pty) Ltd Subsidiary of Efficient Group RSA 100% 100%

Efficient Board of Executors (Pty) Ltd Subsidiary of Efficient Group RSA 51% -

The remaining useful life of the trade names are between 1 and 19 years (2015: 2 and 20 years), customer contracts and customer relationships,

between 1 and 19 years (2015: 2 and 20 years) and computer software between 3 and 6 years (2015: 4 and 7 years).

The impairment loss in 2015 was recognised in relation to computer software, Nvest, that became obsolete with a recoverable amount of Rnil. The

software was fully impaired. The impairment loss was recognised in profit or loss.

The following subsidiaries are controlled by the Group through a majority voting rights. The Group has power over these subsidiaries, rights to the

variable returns earned from its involvement with the subsidiaries, and the ability to use its power over the subsidiaries to affect these returns:

Customer contracts and customer

relationships

34




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

5 Investments (continued)

5.1 Investments in subsidiaries (continued)

Consolidated structured entities

Efficient Group Share Trust RSA - -

Material investments in subsidiaries

Efficient Select (Pty) Ltd 25 158 46 311

Efficient Financial Services (Pty) Ltd 47 326 47 326

Efficient Wealth (Pty) Ltd 112 031 112 031

Boutique Collective Investments (RF) (Pty) Ltd 900 900

Select Manager (Pty) Ltd 107 508 107 508

292 923 314 076

Non-controlling interests

The following subsidiaries have material non-controlling interests ("NCI"):

Operating segment

Principal

place of

business

Ownership

interest held

by NCI

2016 2015

Efficient Select Swaziland (Pty) Ltd Investments SZL 74% 74%

Efficient Asset Finance (Pty) Ltd Financial Services RSA 20% 20%

Efficient Board of Executors (Pty) Ltd Financial Services RSA 49% -

The trustees of the Efficient Group Share Trust are appointed by the Efficient Group Ltd board and therefore Efficient Group Ltd controls the

Efficient Group Share Trust.

Investments in subsidiaries are carried at cost lest accumulated impairment charges. Efficient Group Ltd holds a majority voting right in all

subsidiaries.

The net profit after tax of the Group subsidiaries for the current financial year amounts to R59.2 million (2015: R48.8 million) and the losses

amount to R7.9 million (2015: R9.5 million).

The following table summarises financial information of subsidiaries with NCI prepared in accordance with IFRS. The information is presented

before intragroup eliminations.

35




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

5 Investments (continued)

5.1 Investments in subsidiaries (continued)

Efficient

Select

Swaziland

(Pty) Ltd

Efficient

Asset

Finance (Pty)

Ltd

Efficient

Board of

Executors

(Pty) Ltd

2016 2015 2016 2015 2016 2015

R'000 R'000 R'000 R'000 R'000 R'000

Revenue - - - 462 463 -

Profit/(loss) for the year 11 (1 734) (58) (477) (39) -

Profit/(loss) attributable to NCI 8 (1 283) (12) (95) (19) -

Current assets 4 510 6 86 3 -

Non-current assets - 4 - - 33 -

Current liabilities (2 772) (3 283) (1 923) - (60) -

Non-current liabilities - - - (1 946) - -

Net liabilities (2 768) (2 769) (1 917) (1 860) (24) -

Net liabilities attributable to NCI (2 048) (2 049) (383) (372) (12) -

Cash flows from operating activities (508) (1 036) (35) (731) 11 -

Cash flows from investing activities - 28 - 10 - -

Cash flows from finance activities - 421 (46) 737 - -

(508) (587) (81) 16 11 -

5.2 Available-for-sale financial assets

Linked unit investment (Fair value hierarchy: Level 1) 1 383 1 298 - -

Listed share portfolios (Fair value hierarchy: Level 1) - 359 - -

1 383 1 657 - -

5.3 Investments designated as at fair value through profit or loss

Linked unit investment (Fair value hierarchy: Level 1) 6 503 41 931 1 042 1 017

Total investments 7 886 43 588 293 965 315 093

Current portion of investments 6 503 41 931 1 042 1 017

Non-current portion of investments 1 383 1 657 292 923 314 076

Net (decrease)/increase in cash and cash equivalents

36




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

6 Equity accounted associates

Name

Country of

incorporation

Proportion of

ownership

interest

Principal

activities Nature of relationship with the Group

C & A F Financial Services (Pty) Ltd RSA 49% Financial Services

Rudiarius Capital Management (Pty) Ltd RSA 30% Financial

Services

AS Sure Investment Services (Pty) Ltd RSA 25% Financial

Services

NAM 50% Financial

Services

Equity accounted associates consist of

C & A F Financial Services (Pty) Ltd - - - -

Rudiarius Capital Management (Pty) Ltd 1 224 263 - -

AS Sure Investment Services (Pty) Ltd 10 502 10 650 10 502 10 787

Efficient Financial Services (Namibia) (Pty) Ltd - - - -

11 726 10 913 10 502 10 787

Reconciliation of equity accounted associates

Opening balance 10 913 16 973 10 787 11 536

Profit/(loss) for the year per statement of comprehensive income 1 823 1 808 575 -

Impairment of investment in associate - (869) - (60)

Repayment of loan to associate - (412) - (689)

Dividend received (1 010) (863) (860) -

Disposal of investment in associate - (5 724) - -

Closing balance 11 726 10 913 10 502 10 787

Aggregate amounts relating to associates

Current assets 7 486 5 100 1 058 3 216

Non-current assets 1 583 3 250 1 583 1 644

Current liabilities (2 524) (2 384) - -

Non-current liabilities (969) (2 187) (969) (1 186)

5 576 3 779 1 672 3 674

Efficient Group Ltd's share of net assets 1 591 1 001 420 922

Revenue 29 744 39 908 17 602 19 731

Total comprehensive income 5 622 6 453 2 289 3 517

Efficient Group Ltd's share of other comprehensive income 1 823 1 808 575 883

Efficient Financial Services (Namibia) (Pty) Ltd is an equity accounted investment as the Group does not hold the majority of the voting rights, nor

does it have the ability to appoint the majority of the board.

The equity accounted associates Rebalance Fund Managers (Pty) Ltd and Marion Technology (Pty) Ltd were disposed of by the Group on 1 June

2015 and 1 March 2015 respectively.

Independent and not strategic to the Group's activities



Efficient Financial Services (Namibia) (Pty)

Ltd


37




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

6 Equity accounted associates (continued)

7 Long-term receivables

7.1 L Benade 250 1 470 - -

7.2 T Maree 9 198 - -

7.3 H Raath 122 177 - -

7.4 CJ van Zyl 69 139 - -

7.5 F Holtzhausen 30 - - -

7.6 HC de Wet 52 - - -

7.7 TG Bester 22 - - -

The respective year-ends of the following associates differ from that of the Group:

- C & A F Financial Services (Pty) Ltd (February year-end)

- AS Sure Investment Services (Pty) Ltd (February year-end)

The results of these associates are equity accounted using associate management prepared information on a basis co-terminus to the Group's year-

end.

Due to a decrease in the expected financial performance of the entity, the recoverable amount of the investment in AS Sure Investment Services

(Pty) Ltd decreased to below its carrying amount and was impaired in the 2015 financial year. As a result, the investment was again assessed for

impairment during the 2016 financial year by comparing its recoverable amount to its carrying value.

The recoverable amount was calculated on a value-in-use basis, based on pre-tax cash flow projections from financial budgets approved by

management covering a five-year period, a pre-tax discount rate of 33.4% (2015: 29.5%) and a terminal value discount rate of 4.5% (2015: 4.0%).

The investment's carrying value was found to approximate its recoverable amount, and no impairment loss (2015: R870 000) was recognised in

profit or loss. The increase in pre-tax discount rate compared to the discount rate used in the prior period is due to a risk-based adjustment to the

rate as a result of the prior period impairment.

The loan to L Benade forms part of the acquisition of a customer base. This loan is

unsecured and repayable in a total of 5 monthly instalments of R60 000 each. The loan

bears interest at the prime interest rate.

The loan to T Maree forms part of the acquisition of a customer base. This loan is



The loan to H Raath forms part of the acquisition of a customer base. This loan is



The loan to CJ van Zyl forms part of the acquisition of a customer base. This loan is



The loan to F Holtzhausen forms part of the acquisition of a customer base. This loan is



The loan to HC de Wet forms part of the acquisition of a customer base. This loan is



The loan to TG Bester forms part of the acquisition of a customer base. This loan is



38




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

7 Long-term receivables (continued)

7.8 CS Sutherland and Celtis Financial Services (Pty) Ltd 3 000 - - -

7.9 Quantum Asset Management (Pty) Ltd 2 554 - - -

7.10 Share purchase scheme 1 069 1 291 1 069 1 291

Total long-term receivables 7 177 3 275 1 069 1 291

Current portion of long-term receivables

L Benade 250 1 109 - -

T Maree 9 102 - -

H Raath 122 98 - -

CJ van Zyl 69 68 - -

F Holtzhausen 15 - - -

HC de Wet 26 - - -

TG Bester 22 - - -

CS Sutherland and Celtis Financial Services (Pty) Ltd 500 - - -

Quantum Asset Management (Pty) Ltd 2 554 - - -

Share purchase scheme 174 - 174 -

3 741 1 377 174 -

Non-current portion of long-term receivables 3 436 1 898 895 1 291

7 177 3 275 1 069 1 291

The loan to Quantum Asset Management (Pty) Ltd is unsecured, bears interest at the

prime interest rate plus 3%, and is repayable in 4 quarterly payments of R625 000 plus

interest.

In terms of the share purchase scheme (refer to note 28) loans were granted to certain

employees to fund 75% of the acquisition of Efficient Group Ltd shares. The loans are

repayable on 31 August 2018 and bear interest at the "official rate of interest" as

defined in the Income Tax Act. Employees can not trade the shares until the debt is

repaid in full.

The fair value of the long-term receivable is R1 025 000 (2015: R1 192 000) and the

instrument is classified as level 3 on the fair value hierarchy. The valuation considers

the present value of the payments set out in the agreement, discounted using a

discount rate of 10.5% (2015: 9.5%).

The loan to CS Sutherland and Celtis Financial Services (Pty) Ltd ("Celtis") is secured by

portfolio management fees receivable by Celtis on certain assets under management,

and cession of a policy on the life of CS Sutherland. The loan is repayable as follows;

R500 000 before March 2017, R1 000 000 before 31 March 2018 and the balance

before 31 March 2019. The loan bears no interest, but Boutique Investment Partners

(Pty) Ltd will earn a profit-share from certain Celtis funds as part of the loan agreement.

The fair value of the long-term receivable is R2 365 000 and the instrument is classified

as level 3 on the fair value hierarchy. The valuation considers the present value of the

expected payments as set out in the agreement, discounted using a discount rate of the

prime rate plus 3%.

39




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

8 Deferred tax

Asset per statement of financial position 12 172 20 081 1 719 1 716

Liability per statement of financial position (30 991) (33 824) - -

Net deferred tax (liability)/asset (18 819) (13 743) 1 719 1 716

Deferred tax assets/(liabilities) comprise

Accruals 10 135 21 116 1 434 1 633

Fair value adjustment of investments 202 232 2 119

Liability on lease assets - 92 - -

Assessed losses 7 287 3 008 339 31

Prepaid expenses (206) (302) (46) (67)

Fair value adjustment of investments (246) - (10) -

Intangible assets (35 991) (37 889) - -

(18 819) (13 743) 1 719 1 716

Reconciliation of deferred tax balance

Opening balance (13 743) (22 671) 1 715 651

Deferred tax recognised in the statement of financial position (1 896) (12 341) - -

Deferred tax recognised in the statement of profit or loss (3 157) 21 250 4 1 064

Deferred tax recognised in other comprehensive income (23) 19 - -

(18 819) (13 743) 1 719 1 715

9 Trade and other receivables

Trade receivables 75 688 68 475 3 942 1 322

Staff loans 1 6 - -

Prepaid expenses 1 514 1 102 174 255

Deposits 451 284 - -

VAT receivable 363 610 - -

Other receivables 1 659 3 778 104 89

79 676 74 255 4 220 1 666

10 Cash and cash equivalents

Cash on hand 10 13 1 1

Call account 58 151 27 243 85 5 035

Current account 31 957 26 577 3 114 11 511

90 118 53 833 3 200 16 547

The deferred tax assets of the Group includes an amount of R10 337 000 (2015: R21 348 000) relating to temporary differences on current assets

and current liabilities, and R7 287 000 (2015: R3 100 000) relating to temporary differences on non-current assets and non-current liabilities. The

deferred tax assets relating to current assets and current liabilities are expected to realise within 12 months.

The deferred tax liabilities of the Group includes an amount of R452 000 (2015: R302 000) relating to temporary differences on current assets and

current liabilities, and R35 991 000 (2015: R37 889 000) relating to temporary differences on non-current assets and non-current liabilities. The

deferred tax liabilities relating to current assets and current liabilities are expected to be settled within 12 months.

The utilisation of the deferred tax asset raised on calculated losses is dependent on future taxable profits in excess of the profits arising from the

reversal of existing taxable temporary differences. Management is confident that the deferred tax asset will be recovered in future years based on

approved budgets and forecasts.

40




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

11 Share capital and share premium

Authorised

361 350 000 ordinary shares of R 0.00000277 each 1 1 1 1

Issued

90 592 973 ordinary shares of R 0.00000277 each - - - -

Share premium 150 325 150 325 263 530 263 530

150 325 150 325 263 530 263 530

12 Long-term liabilities

12.1 Vendor finance 5 337 1 744 - -

12.2 Select Manager forward purchase liabilities

Phase I liability 14 210 42 243 14 210 42 243

Phase II liability 54 885 52 763 54 885 52 763

12.3 Select Manager dividend liability 12 811 15 336 - -

The Efficient Group Share Trust holds 260 834 (2015: 227 502) shares in Efficient Group Ltd. These shares are disclosed as treasury shares.

The unobservable inputs for calculating the forward purchase liability include budgets

and forecasts, the conversion ratio of independent financial advisor book buys, profit

targets and free cash flows.

This liability is presented at fair value and payable over a year and a half. The fair value

hierarchy is level 3. The valuation considers the present value of the expected

payments set out in the contract, discounted using a discount rate of 7.75% (2015:

6.60%).

The unobservable inputs for calculating the dividend liability include budgets and

forecasts, planned independent financial advisor book buys, profit targets and free cash

flows.

The unissued ordinary shares are under the control of the directors in terms of a resolution of shareholders passed at the last annual general

meeting. This authority remains in force until the next annual general meeting.

These liabilities form part of the acquisition of customer bases. The loans are

unsecured, interest free and repayable at various instalment dates and amounts. The

last instalment is payable in 2018.

The fair value of the outstanding liabilities is R4 944 000 (2015: R1 584 000). The fair

value hierarchy is level 3. The valuation considers the present value of the payments set

out in the agreements, discounted using a discount rate of 10.50% (2015: 9.50%).

This liability forms part of the acquisition of the Select Manager group through a

forward purchase contract entered into with effective date 1 March 2015, and is

payable in two phases over a period of three years.

This liability is presented at fair value and is repayable in equal instalments of R15

million over one year. The fair value hierarchy is level 3. The valuation considers the

present value of the expected payments set out in the contract, discounted using a

discount rate of 10.88% (2015: 9.80%).

This liability is presented at fair value and repayable on 1 March 2018. The fair value

hierarchy is level 3. The valuation considers the present value of the expected

payments set out in the contract, discounted using a discount rate of 7.75% (2015:

6.60%).

41




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

12 Long-term liabilities (continued)

12.4 Incentive liability - 662 - -

12.5 Working capital loans

Facility A 13 388 21 038 13 388 21 038

Facility B 9 250 9 167 9 250 9 167

Facility C 8 550 - 8 550 -

Facility D 3 000 - 3 000 -

12.6 Mortgage loan 11 881 - - -

12.7 PSJ Dynes and associates - 212 - -

Total long-term liabilities 133 312 143 165 103 283 125 211

This liability relates to a percentage of an incentive scheme payment that is due to the

asset managers, that is retained and payable after an agreed employment period.

The liability relates to an amortising term loan from Standard Bank of South Africa to

assist the subsidiaries with their respective working capital requirements, and consists

of four facilities. The loan is guaranteed by Efficient Wealth (Pty) Ltd, Naviga Solutions

(Pty) Ltd, Boutique Investment Partners (Pty) Ltd and Efficient Financial Services (Pty)

Ltd. All loan covenants have been met.

The facility bears interest at JIBAR plus 3.75% per annum and is repayable in 16 equal

and quarterly payments of R1 912 500 plus interest accrued for the period.

The facility bears interest at JIBAR plus 3.50% per annum and is repayable in 12 variable

quarterly capital payments plus interest accrued for the period.

The facility bears interest at JIBAR plus 3.95% per annum and is repayable in 20

quarterly and equal capital payments of R450 000 plus interest accrued for the period.

The purpose of this facility is to finance renovations at the Group's new offices in

Hazelwood, Pretoria. The facility bears interest at JIBAR plus 2.95% per annum, has no

repayment date, and shall be refinanced on maturing date (expected to be 31 August

2017) under renewed terms.

All working capital loans are secured by guarantees from Efficient Financial Services,

Efficient Wealth, Naviga Solutions and Boutique Investment Partners issued to the

lender.

This loan is secured by property with a carrying amount of R21.1 million (refer to note

3) and bears interest at the prime interest rate less 1%. The capital is repayable in 60

escalating monthly instalments and shall be fully repaid in 2021.

This loan was unsecured, bore no interest and the last instalment was paid in June

2016.

42




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

12 Long-term liabilities (continued)

Current portion of long-term liabilities

Vendor finance 3 680 524 - -

Select Manager forward purchase liabilities 14 210 27 957 14 210 27 957

Select Manager dividend liability 10 834 7 267 - -

Incentive liability - 662 - -

Working capital loans 18 617 11 317 18 617 11 317

Mortgage loan 506 - - -

PSJ Dynes and associates - 212 - -

47 847 47 939 32 827 39 274

Non-current portion of long-term liabilities 85 465 95 226 70 456 85 937

133 312 143 165 103 283 125 211

13 Trade and other payables

Trade payables 65 033 50 868 13 846 521

Leave pay accrual 3 037 7 863 312 1 430

Incentive and profit share accrual 29 598 3 021 4 165 503

Payroll accruals 28 227 66 346 306 4 754

Other accruals 8 269 4 092 699 241

VAT payable 5 383 3 368 2 286 365

Loans from NCI holders of subsidiaries - 1 129 - -

139 547 136 687 21 614 7 814

Loans from NCI holders are unsecured, bears no interest and have no repayment terms.

14 Contingent liabilities and capital commitments

Efficient Group Ltd has the following outstanding guarantees

+

+

+

Efficient Wealth (Pty) Ltd has the following outstanding guarantees

+

15 Revenue

Asset management fees

- Performance fees 8 890 9 781 - -

- Base fees 57 826 16 285 - -

Asset administration fee 630 887 535 323 - -

Financial services fees 147 735 118 362 - -

Services and solutions 28 647 35 974 - -

Research, rent and administration fees 5 993 454 25 616 20 702

879 978 716 179 25 616 20 702

A guarantee in the amount of R300 000 in terms of a lease agreement for Efficient Select (Pty) Ltd's offices in Cape Town.

A guarantee in the amount of R3 000 000 in terms of a mortgage loan agreement between Efficient Capital (Pty) Ltd and Standard Bank Limited

related to the purchase of the Catnia building (refer to note 2).

A guarantee in the amount of R955 000 issued to the City of Tshwane Metropolitan Municipality for performance obligations in terms of a

rezoning service agreements related to the construction of the new Dely Road offices (refer to note 2).

A guarantee in the amount of R38 000 in terms of an agreement for offices in Port Elizabeth.

43




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

16 Operating profit/(loss)

Operating profit/(loss) for the year is stated after the following:

Audit fees

- Audit services (1 875) (1 868) (459) (515)

- Non-audit services (86) (50) (13) -

Operating lease charges

- Premises (5 441) (3 834) (308) (475)

- Equipment (381) (453) (38) (14)

Amortisation of intangible assets (16 215) (12 538) - -

Depreciation on property and equipment (1 775) (1 481) (281) (288)

Doubtful debt (57) (22) (57) -

17 Directors' and prescribed officers' emoluments

Basic Salary

Other

Benefits (1) Bonus

Profit Share

(2)

Directors

fees

Share-based

payments Commission Total

Executive directors

H Weidhase 2 197 203 - - - 163 - 2 563

AT De Klerk 1 713 114 - - - 234 - 2 061

DD Roodt 1 650 99 - - - 77 - 1 826

RH Walton 1 985 105 - 42 715 - - - 44 805

CP Burger (3) 1 183 - 84 - - - 1 840 3 107

8 728 521 84 42 715 - 474 1 840 54 362

Non-executive directors

SF Booysen - - - - 563 - - 563

LCZ Cele - - - - 222 - - 222

L Taylor - - - - 202 - - 202

J Rosen - - - - 251 - - 251

AP du Preez - - - - 97 - - 97

MM du Preez - - - - 97 - - 97

JA Mabena (4) - - - - 190 - - 190

- - - - 1 622 - - 1 622

Prescribed officers

P Hewett (5) 897 79 - - - 76 412 1 464

L Levy (6) - - - - - - - -

D Gill (7) - - - - - - - -

R Barnard 1 279 100 - - - 176 - 1 555

N Burger 1 505 60 83 - - - 638 2 286

P de Klerk 1 148 71 - 1 154 - 4 - 2 377

D Janse van Rensburg 947 36 - - - 97 - 1 080

G Abrahams (8) 1 142 47 - 1 750 - 8 - 2 947

BM Jiya (9) 1 044 6 - - - - - 1 050

CP Burger (3) 237 - - - - - 372 609

8 199 399 83 2 904 - 361 1 422 13 368

Total 16 927 920 167 45 619 1 622 835 3 262 69 352

2016

The operating lease agreements are for various periods ranging from one month to five years and the future lease payments are disclosed in note

25. The lease agreements make provision for escalation of between 0% and 7% and some of the escalation clauses are limited to the consumer

price index. No purchase options exist on any of the leased property and equipment.

The following emoluments accrued to directors and prescribed officers of the Efficient Group Ltd and its subsidiaries during the year:

44




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

17 Directors' and prescribed officers' emoluments (continued)

Basic Salary

Other

Benefits (1) Bonus

Profit Share

(2)

Directors

fees

Share-based

payments Commission Total

Executive directors

H Weidhase 1 732 309 1 467 - - 137 - 3 645

AT De Klerk 1 528 190 1 186 - - 103 - 3 007

DD Roodt 1 491 166 1 137 - - 102 - 2 896

RH Walton 1 321 307 - 30 319 - - - 31 947

CP Burger (3) 1 404 - 383 - - - 2 188 3 975

7 476 972 4 173 30 319 - 342 2 188 45 470

Non-executive directors

SF Booysen - - - - 393 - - 393

LCZ Cele - - - - 202 - - 202

L Taylor - - - - 186 - - 186

J Rosen - - - - 217 - - 217

AP du Preez - - - - 90 - - 90

MM du Preez - - - - 90 - - 90

JA Mabena (4) - - - - - - - -

- - - - 1 178 - - 1 178

Prescribed officers

P Hewett (5) 1 479 144 436 - - 100 - 2 159

L Levy (6) 824 782 42 - - - - 1 648

D Gill (7) 678 1 894 99 - - - - 2 671

R Barnard 799 164 879 - - 50 - 1 892

N Burger 1 346 - 383 - - - 681 2 410

P de Klerk 958 133 2 773 1 998 - 3 - 5 865

D Janse van Rensburg 766 68 216 - - 9 - 1 059

6 850 3 185 4 828 1 998 - 162 681 17 704

Total 14 326 4 157 9 001 32 317 1 178 504 2 869 64 352

1

2

3

4

5

6

7

8

9

18 Staff cost

Salaries and wages 183 184 158 559 13 793 3 719

Share-based payments (refer to note 28) 1 322 304 688 152

184 506 158 863 14 481 3 871

Director's remuneration amounting to R190 000 (2015: R180 000) was paid to Thebe Investment Corporation (Pty) Ltd in respect of directors

representing the shareholder on the Efficient Group Ltd board of directors.

P Hewett resigned from the Group on 31 March 2016.

L Levy resigned from the Group on 31 May 2015.

D Gill resigned from the Group on 30 April 2015.

G Abrahams became a prescribed officer of the Group on 1 January 2016.

BM Jiya became a prescribed officer of the Group on 1 February 2016.

2015

Other benefits include travel allowances, medical aid contributions and retirement fund contributions.

The profit share payments are made in accordance with agreements with the management team of Boutique Collective Investment (Pty) Ltd and

Boutique Investment Partners (Pty) Ltd.

CP Burger resigned as a member of the Efficient Group Ltd board of directors on 30 June 2016 and became a prescribed officer of the Group.

Staff costs consist of short-term benefits, share-based payments and profit share payments to staff, directors and prescribed officers. No long-

term and post-employment benefits are payable to any employee.

45




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

19 Finance income

Interest received

- Bank 5 301 6 442 461 151

- Other 8 599 684 1 414 1 736

13 900 7 126 1 875 1 887

20 Finance cost

Interest paid

- Bank and long-term liabilities 3 526 2 710 3 216 2 710

- Other 104 1 15 -

3 630 2 711 3 231 2 710

21 Impairments

Impairment of intangible asset (refer to note 4) - 420 - -

Impairment of investment in associate (refer to note 6) - 869 - 60

Impairment of investment in subsidiaries - - 21 153 -

- 1 289 21 153 60

22 Tax

Normal tax

- current year 13 287 33 476 - -

- prior year 401 - - -

Deferred tax

- current year 3 576 (21 184) (4) (1 064)

- prior year (419) (85) - -

16 845 12 207 (4) (1 064)

Tax rate reconciliation

Standard tax rate 28.0% 28.0% 28.0% 28.0%

Share of profit from associates -0.9% -0.6% 4.1% 0.0%

Dividends received 0.0% 0.0% 151.7% -38.9%

Non-taxable income: Other 0.0% -4.1% 1.4% 0.0%

Impairment of investment in subsidiary 0.0% 0.0% -151.6% 0.0%

Re-measurement of liabilities designated at fair value through profit or loss 3.4% -0.2% -33.4% -1.7%

Non-deductible expenses: Other 0.5% 3.5% -0.1% 1.6%

Capital gains 0.0% 0.4% 0.0% 0.0%

Prior year (over)/under provision 0.0% 0.0% 0.0% 0.0%

Unrecognised deferred tax asset 0.0% 2.4% 0.0% 0.0%

Effective tax rate 31.0% 29.4% 0.1% -11.0%

Underperforming budgeted targets resulted in a decrease in the expected future financial performance of Efficient Select (Pty) Ltd and the

recoverable amount of the investment in the entity decreased to below its carrying amount. The recoverable amount has been based on a value in

use calculation, using pre-tax cash flow projections based on financial budgets approved by management covering a five-year period, a pre-tax

discount rate of 27.0% (2015: 27.7%), and a terminal growth rate of 4.5% (2015: 4.0%). An impairment loss of R21 153 000 was recognised in profit

or loss.

Twist Street Securities, Efficient Asset Finance, Efficient Select International and Efficient Select Swaziland have tax losses of R3 148 000 (2015: R3

711 000) available for set off against future taxable income. No deferred tax assets have been recognised for these tax losses as it is not probable

that these companies will generate sufficient future taxable income.

46




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

23 Basic earnings, diluted earnings and dividend per share

'000 '000

Weighted average number of ordinary shares in issue

Number of ordinary shares in issue at the end of the year 90 593 90 593

Weighted average number of ordinary shares repurchased during the year (13) (59)

Treasury shares (228) (62)

Weighted average number of ordinary shares in issue, net of treasury shares 90 352 90 472

Basic and diluted earnings per share (cent) 41.55 33.91

Attributable earnings (R'000) 37 538 30 681

Weighted average number of ordinary shares in issue 90 352 90 472

Headline and diluted headline earnings per share (cent) 41.53 32.32

Headline earnings (R'000) 37 520 29 245

Weighted average number of ordinary shares in issue 90 352 90 472

R'000 R'000

Headline and diluted headline earnings are calculated as follows 37 520 29 245

Attributable earnings 37 538 30 681

Profit on sale of equipment (25) (82)

Tax on profit on sale of equipment 7 23

Profit on sale of shares in associate - (2 607)

Tax on profit on sale of share in associate - -

Impairment of intangible asset - 420

Impairment of investment in associate - 869

Profit on sale of financial advisor client base - (73)

Tax on profit on sale of financial advisor client base - 14

Basic and diluted earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average

number of ordinary shares in issue during the year.

Dividends of 6.15000 cent per share and 1.58824 cent per share were paid in December 2015 (2014: 2.00000 cent per share) and May 2016 (2015:

5.88235 per share) respectively.

47




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

24 Notes to the statement of cash flows

24.1 Cash generated by /(utilised from) operations

Profit/(loss) before taxation 54 360 41 509 (3 907) 9 674

Adjustments for

Depreciation 1 775 1 481 281 288

Amortisation of intangible assets 16 215 12 538 - -

Dividends received (226) (258) (21 169) (13 442)

Profit on sale of equipment (25) (82) - (38)

Profit on sale of share in associate - (2 607) - -

Profit on sale of financial advisory client base - (73) - -

Re-measurement of liabilities at fair value through profit or loss 6 589 (3 097) 4 661 (3 097)

(108) 57

(25) (161)

Finance income (13 900) (7 126) (1 875) (1 887)

Finance cost 3 630 2 711 3 231 2 710

Impairment of intangible asset - 420 - -

Impairment of Investment in associate - 869 - 60

Impairment of investment in subsidiary - - 21 153 -

Doubtful debt 57 - 57 -

Share of (profits)/losses from associates (1 823) (1 808) (575) -

Changes in working capital

Trade and other receivables (5 478) (12 501) (2 611) (1 226)

Trade and other payables 2 860 70 381 13 800 5 474

63 926 102 414 13 021 (1 645)

24.2 Tax paid

Tax payable at the beginning of the year 1 154 1 141 - -

13 688 33 476 -

-

Tax balances acquired through business combination - 1 607 - -

Tax receivable/(payable) at the end of the year 357 (1 154) - -

15 199 35 070 - -

24.3 Acquisition/(disposal) of businesses

Income tax for the year recognised in the statement of comprehensive income

During the current year, the Group acquired various financial advisory customer bases from independent financial advisers (refer to note 30 for

more detail).

During the prior year, the Group acquired a 70% stake in Select Manager (Pty) Ltd and entered into a forward purchase agreement for the

remaining 30%. The Group also acquired various financial advisory customer bases from independent financial advisers. A previously acquired

customer base was sold during the same year.

Fair value adjustment of investment designated at fair value through profit or loss

48




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

24.3 Acquisition/(disposal) of businesses (continued)

Acquisition of businesses

Gross trade receivables - 5 247 - -

Equipment - 168 - -

Intangible assets 6 398 44 513 - -

Deferred tax asset - (34) - -

Trade payables - (2 017) - -

Taxation payable - (1 607) - -

Cash and cash equivalents - 4 104 - -

Long-term liabilities - - - -

Identifiable assets acquired and liabilities assumed 6 398 50 374 - -

Goodwill 1 775 87 019 - -

Investment in subsidiary - - - 107 508

Add: Long-term receivable raised as part of the purchase price 151 386 - -

Less: Long-term liability raised as part of the purchase price (4 582) (108 782) - (92 508)

Less: Deferred tax raised on intangible asset acquired (1 775) (12 306) - -

Less: Cash acquired - (4 104) - -

Less: Fair value of shares issued as part of the purchase price - - - -

Net cash paid on acquisition of businesses 1 967 12 587 - 15 000

Disposal of businesses

Intangible assets - (348) - -

Net cash received on disposal of businesses - (348) - -

Net cash flow on acquisition and disposal of businesses 1 967 12 239 - 15 000

25 Operating lease commitments

Future minimum lease payments under non-cancellable operating leases:

Within one year 3 759 4 977 518 605

From two to five years 6 227 11 200 - 377

9 986 16 177 518 982

26 Related parties

Relationship

Efficient Select (Pty) Ltd Subsidiary

Efficient Asset Finance (Pty) Ltd Subsidiary

Efficient Capital (Pty) Ltd Subsidiary

Instit (Pty) Ltd Subsidiary

Boutique Collective Investments (RF) (Pty) Ltd Subsidiary

Boutique Investment Partners (Pty) Ltd Subsidiary

Efficient International Investments (Pty) Ltd Subsidiary

Efficient Financial Services (Pty) Ltd Subsidiary

Midnight Masquerade Investments (Pty) Ltd Subsidiary

Efficient Group Share Trust Consolidated structured entity

Efficient Group Swaziland (Pty) Ltd Subsidiary

Efficient Select Swaziland (Pty) Ltd Subsidiary

Efficient Wealth (Pty) Ltd Subsidiary

Naviga Solutions (Pty) Ltd Subsidiary

Twist Street Securities (Pty) Ltd Subsidiary

Efficient Fiduciary Services (Pty) Ltd Subsidiary

Verso Collective Investments (Pty) Ltd Subsidiary

Select Manager (Pty) Ltd Subsidiary

49




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

26 Related parties (continued) Relationship

Stead Wealth Management (Pty) Ltd Subsidiary

Exceed Asset Management (Pty) Ltd Subsidiary

Exceed Private Clients (Pty) Ltd Subsidiary

Efficient Board of Executors (Pty) Ltd Subsidiary

Efficient Private Clients (Pty) Ltd Subsidiary

AS Sure Investment Services (Pty) Ltd Associate

C & A F Financial Services (Pty) Ltd Associate

Efficient Financial Services (Namibia) (Pty) Ltd Associate

Rudiarius Capital Management (Pty) Ltd Associate

Refer to note 17 for a listing of the directors Directors

Midnight Storm Investments 299 (Pty) Ltd Directors hold an interest

26.1 Related party loans

Loans to related parties

Non-current loans

Efficient Financial Services (Pty) Ltd - - 16 892 -

Non-current working capital loans

Efficient Financial Services (Pty) Ltd - - 12 779

Total non-current loans - - 29 671 -

Current loans

Efficient Financial Services (Pty) Ltd - - - 6 247

Efficient Asset Finance (Pty) Ltd - - 657 737

Efficient Group Share Trust - - 490 403

Efficient Capital (Pty) Ltd - - 10 888 -

Efficient Wealth (Pty) Ltd - - - 10 920

Naviga Solutions (Pty) Ltd - - - 2 152

Boutique Investment Partners (Pty) Ltd - - - 700

Efficient Select (Pty) Ltd - - - 746

Efficient Select Swaziland (Pty) Ltd - - 67 66

Rudiarius Capital Management (Pty) Ltd - 39 39

Current working capital loans

Efficient Select (Pty) Ltd - - 3 861 -

Efficient Financial Services (Pty) Ltd - - - 11 761

Efficient Capital (Pty) Ltd - - 3 000 -

Efficient Wealth (Pty) Ltd - - - 5 545

Total current loans - 39 18 963 39 316

Loans from related parties

Current loans

Boutique Collective Investments (RF) (Pty) Ltd - - - (4 000)

Efficient Capital (Pty) Ltd - - - (55) - - - (4 055)

The fair value of the non-current loan to Efficient Financial Services is R15 083 000. The

fair value hierarchy is level 3. The valuation considers the present value of the payment

agreed on by the parties, discounted using the prime interest rate at 10.50%.

Efficient Group agreed not to call for payment of the loan and working capital loan made to Efficient Financial Services until at least 30 September

2017.

50

-




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

26.1 Related party loans (continued)

Accounts receivable from related parties

Efficient Select Swaziland (Pty) Ltd - - - 261

Naviga Solutions (Pty) Ltd - - 47 250

Boutique Collective Investments (RF) (Pty) Ltd - - 2 265 308

Boutique Investment Partners (Pty) Ltd - - 232 -

Efficient Wealth (Pty) Ltd - - 1 179 426

Efficient Board of Executors (Pty) Ltd - - 38 -

Select Manager (Pty) Ltd - - 30 -

Stead Wealth Management (Pty) Ltd - - 2 -

Exceed Asset Management (Pty) Ltd - - 2 -

Midnight Storm Investments 299 (Pty) Ltd 296 - 2 -

AS Sure Investment Services (Pty) Ltd 104 146 - -

Rudiarius Capital Management (Pty) Ltd 94 15 88 -

494 161 3 885 1 245

Accounts payable to related parties

Midnight Storm Investments 299 (Pty) Ltd - (97) - (97)

Rudiarius Capital Management (Pty) Ltd (966) (1 256) - -

AS Sure Investment Services (Pty) Ltd (1 017) (1 044) - -

Boutique Collective Investments (RF) (Pty) Ltd - - (13 000) -

(1 983) (2 397) (13 000) (97)

26.2 Related party transactions

Administration fees received

Efficient Select (Pty) Ltd - - 3 851 3 899

Efficient Select Swaziland (Pty) Ltd - - - 154

Boutique Collective Investments (RF) (Pty) Ltd - - 4 978 2 719

Efficient Financial Services (Pty) Ltd - - 6 330 5 005

Boutique Investment Partners (Pty) Ltd - - 2 556 2 050

Efficient Wealth (Pty) Ltd - - 5 021 4 278

Naviga Solutions (Pty) Ltd - - 2 612 2 011

Select Manager (Pty) Ltd - - 270 135

Rudiarius Capital Management (Pty) Ltd - 55 - 55

Rebalance Fund Managers (Pty) Ltd - 78 - 78

Interest received on working capital loans

Efficient Financial Services (Pty) Ltd - - 1 153 740

Efficient Select (Pty) Ltd - - 20 87

Efficient Wealth (Pty) Ltd - - 381 514

Boutique Investment Partners (Pty) Ltd - - - 231

Dividends received

Efficient Select (Pty) Ltd - - 750 3 345

Boutique Investment Partners (Pty) Ltd - - 1 000 2 500

Boutique Collective Investments (RF) (Pty) Ltd - - 7 000 5 500

Select Manager (Pty) Ltd - - 12 319 1 685

Rudiarius Capital Management (Pty) Ltd 150 450 - -

Rebalance Fund Managers (Pty) Ltd - 11 - 11

AS Sure Investment Services (Pty) Ltd 860 402 860 402

During the year, Efficient Group Ltd provided financial support amounting to R51 000 (2015: R254 000) to the Efficient Group Share Trust to

enable the structured entity to purchase some of Efficient Group Ltd's own equity instruments.

The current and non-current loans are unsecured, bear no interest and have no fixed repayment terms. The R3 million working capital loan to

Efficient Capital (Pty) Ltd is unsecured, bears interest at JIBAR + 2.95% and has no fixed repayment terms. All other working capital loans are

unsecured, bear interest at JIBAR +3.75% and have no fixed repayment terms.

51




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

26.2 Related party transactions (continued)

Other

Midnight Storm Investments 299 (Pty) Ltd - Rent paid (973) (976) (973) (976)

Rudiarius Capital Management (Pty) Ltd - Service fees received 12 142 10 106 - -

Efficient Group Share Trust - Dividends paid - - (11) -

Efficient Select (Pty) Ltd - Economics and research expense - - (1 795) -

AS Sure Investment Services (Pty) Ltd - Asset management fees paid (10 598) (12 296) - -

AS Sure Investment Services (Pty) Ltd - Asset consulting fees received 1 247 1 196 - -

26.3 Transactions with directors and prescribed officers (including their families)

Remuneration paid and accrued to directors and prescribed officers

- Remuneration 68 517 63 848 55 510 12 226

- Share-based incentive 835 504 474 392

27 Segment analysis

Efficient Group Limited is organised into three main business segments:

Financial Services

Services and Solutions

Investments

2016

Financial

Services

Services and

Solutions Investments Other Total

Revenue 152 868 30 265 785 895 (89 050) 879 978

- External 148 848 29 456 701 412 262 879 978

- Inter-segment 4 020 809 84 483 (89 312) -

Operating expenses (142 734) (13 194) (754 991) 80 353 (830 566)

Finance cost (1 539) - (1 022) (1 987) (4 548)

Finance income 1 247 4 015 22 959 16 088 44 309

Impairment of investment in associate - - - - -

Impairment of intangible assets - - - - -

Net profit for the year 6 958 12 527 31 719 (13 689) 37 515

Tax (5 753) (4 854) (25 540) 9 490 (26 657)

Net asset value 2 142 15 606 44 529 157 753 220 030

Assets 55 833 19 610 180 191 268 439 524 073

Liabilities (53 691) (4 004) (135 662) (110 686) (304 043)

Depreciation and amortisation (1 846) (2 352) (1 888) (11 904) (17 990)

Share of profit from associates - - 1 248 575 1 823

DD Roodt, H Weidhase and SF Booysen are shareholders of Midnight Storm Investments (Pty) Ltd. The Group rents its Dely Road offices from

Midnight Storm Investments (Pty) Ltd at market related tariffs. A sale agreement was entered into between Midnight Storm Investments (Pty) Ltd

and Efficient Group Ltd for the purchase of the Dely Road offices. All conditions to the agreement have been met and registration of the transfer is

in progress. The property was valued by an independent valuer and purchased at a market related consideration.

Included in this segment are Efficient Financial Services, Efficient Asset Finance, Efficient Wealth, Twist Street Securities, Efficient Fiduciary

Services, Stead Wealth Management, Exceed Asset Management, Exceed Private Clients and AS Sure Investment Services.

Included in this segment are Naviga Solutions and Efficient Board of Executors.

Included in this segment are Efficient Select, Efficient International Investments, Boutique Collective Investments, Boutique Investment Partners,

Select Manager, Instit and Rudiarius.

52




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

27 Segment analysis (continued)

2015

Financial

Services

Services and

Solutions Investments Other Total

Revenue 118 363 35 974 645 918 (84 076) 716 179

- External 111 537 35 968 568 220 454 716 179

- Inter-segment 6 826 6 77 698 (84 530) -

Operating expenses (117 930) (10 475) (625 258) 70 064 (683 599)

Finance cost (1 255) - (318) (1 138) (2 711)

Finance income 1 183 368 5 213 362 7 126

Impairment of investment in associate (869) - - - (869)

Impairment of intangible assets (420) - - - (420)

Net profit for the year 383 18 623 19 348 (9 052) 29 302

Tax (718) (7 245) (7 692) 3 448 (12 207)

Net asset value (8 574) 15 754 66 486 115 829 189 495

Assets 45 410 20 802 189 236 249 854 505 302

Liabilities (53 983) (5 048) (122 750) (134 026) (315 807)

Depreciation and amortisation (1 228) (1 378) (1 914) (9 499) (14 019)

Share of profit from associates 908 - 890 10 1 808

28 Share incentive schemes

Share appreciation rights

The following rights were granted:

Grant year Grant date Vesting date

Grant Price

per SAR'S

cent Granted '000

Forfeited

'000

Exercised

'000 Balance '000

2013 2012/10/31 2015/08/31 94 407 (145) (119) 143

2014 2013/10/21 2016/08/31 200 536 (228) - 308

2015 2015/01/15 2017/08/31 374 269 (64) - 205

2016 2016/06/23 2018/08/31 546 900 - - 900

1 556

SARs have a vesting period of three years and are cash-settled share based payments. The grant price and exercise price of these rights are equal

to the 20 day volume weighted average traded market price of the shares preceding the date of the grant or exercise. Rights and awards are

conditional on performance conditions being met. The conditions focus on the Group's earnings growth and share price performance.

Group

Total number of rights

Other consists of consolidation entries, amortisation of intangible assets, C&A F Financial Services, Efficient Capital, Efficient Select Swaziland,

Efficient Share Trust and Efficient Group. All operations take place in southern Africa.

None of the Group's segments relies on concentrated or major clients.

Share incentives, in the form of SARs and a share purchase scheme, are offered to the executive directors and other employees and aim to retainkey skills in the Group.

53




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

28 Share incentive schemes (continued)

Grant year Grant date Vesting date

Grant Price

per SAR'S

cent Granted '000

Forfeited

'000

Exercised

'000 Balance '000

2013 2012/10/31 2015/08/31 94 174 (25) (39) 110

2014 2013/10/21 2016/08/31 200 228 (21) - 207

2015 2015/01/15 2017/08/31 374 51 (17) - 34

2016 2016/06/23 2018/08/31 546 406 - - 406

757

Reconciliation of rights and rewards

2016 2015

SARs '000

Weighted

average

exercise price

(cent) SARs '000

Weighted

average

exercise price

(cent)

Balance at the beginning of the year 836 210 1 745 305

Grant during the year 900 546 269 374

Vested and exercised (119) 94 - -

Forfeited during the year (61) 211 (1 178) 388

Balance at the end of the year 1 556 413 836 210

2016 2015

SARs '000

Weighted

average

exercise price

(cent) SARs '000

Weighted

average

exercise price

(cent)

Balance at the beginning of the year 390 175 378 155

Grant during the year 406 546 51 374

Vested and exercised (39) 94 - -

Forfeited during the year - - (39) 250

Balance at the end of the year 757 378 390 175

Fair value of SARs (per right) 2016 2015 2016 2015

Grant year cent cent cent cent

2013 429 332 429 332

2014 323 249 323 249

2015 201 159 201 159

2016 167 - 167 -

Company

Total number of rights

Group

Company

The fair value of the SARs was determined using a Black Scholes valuation model. The following assumptions were used in the model:

54




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

28 Share incentive schemes (continued)

Risk-free interest rate 9.02% 8.45%

Dividend yield 1.26% 0.50%

Expected volatility 52.00% 35.00%

Increase in SARs provision recognised in the statement of comprehensive income 1 322 808 688 544

Total provision for shared-based payments included in trade and other payables 2 385 1 573 1 410 889

Share purchase scheme

Outstanding loan balance 1 069 1 291 1 069 1 291

Interest received recognised in the statement of comprehensive income 70 140 70 140

29 Risk management

Market risk

Price risk

The table below summarises the impact of reasonable possible movements in the value of financial assets to which the Group is exposed through

collective investment schemes and private share portfolios that it manages on the pre-tax profit and equity of the investments and financial

services strategies of the Group .

The impact on pre-tax profit is calculated by applying the reasonable possible movement, and the margin applicable to each respective entity, to

revenue derived from assets under management and advice subject to this risk where this revenue is a direct function of the value of these assets.

The analysis is based on the assumption that the returns have increased or decreased as disclosed with all other variables held constant.

Expected volatility has been based on an evaluation of the historical volatility of the company's share price, particularly over the historical period

commensurate with the expected term.

During 2014, 1 997 661 Efficient Group Ltd shares were issued to employees at a fair value of R1.53 per share in terms of the share incentive

scheme. In terms of the scheme, loans were granted to fund 75% of the acquisition of these shares. The loans are repayable on 31 August 2018.

The loans bear interest at the "official rate of interest" as defined in the Income Tax Act. Employees can not trade the shares until the debt is paid

in full.

As risk is an inherent part of any business, risk management within the company is a multi-faceted process which involves independent

monitoring, frequent communication, the application of judgement and detailed knowledge of specialised products and markets. Senior

management takes an active role in the risk management process and is responsible for the maintenance of, and ultimately compliance with, risk

management framework. The business recognises that in a complex financial services environment, risk management processes are evolutionary

and should be subject to ongoing review and modification.

The board is responsible for identifying the risks faced by the company, ensuring that the controls established to manage those risks are effective,

and for the monitoring of their application. The risk management function is also responsible for ensuring that consistent policies and procedures

are established for measuring, managing and reporting risk.

The company has identified various risks as being of particular significance to its business.

Price risk is the risk that the Group's position will be adversely affected by movements in the prices of intruments in financial markets. The Group's

revenue is dependent on the value of assets under management, which is subject to this market risk factor.

55




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

29 Risk management (continued)

Reasonable

possible

change

Impact on

pre-tax profit

Impact on

equity

Impact on

pre-tax profit

Impact on

equity

% R'000 R'000 R'000 R'000

Investments 2016 10.0 20 280 14 602 103 74

2015 10.0 16 795 12 092 2 070 1 490

Financial services 2016 10.0 7 427 5 347 - -

2015 10.0 5 918 4 261 - -

Interest rate risk

Sensitivity analysis if all other variables are held constant

Change in

interest

rate

% R'000 R'000 R'000 R'000

Interest bearing assets and liabilities 1.0 265 (643) (148) (658)

Interest bearing assets and liabilities -1.0 (264) 643 146 658

Credit risk

The age of trade receivables at the end of the reporting period was:

Not past due 75 014 67 934 3 883 981

Past due 1 - 30 days 379 44 - 15

Past due 31 - 90 days 130 29 - 29

Past due 91 days and older 165 468 59 297

75 688 68 475 3 942 1 322

Group Company

Deposits and bank balances attract interest at rates that vary with market interest rates and the Group pays interest on long-term borrowings at a

variable interest rate. The Group policy is not to manage interest rate risk, as fluctuations in variable rates do not have a material impact on profit

or loss. Interest rate risk may translate into cash flow risk on a scale that is managable considering the Group's debt levels and cash generating

ability.

Impact on net profit for the year

Credit risk is that of default on a debt that may arise from a borrower or debtor failing to make required payments. This includes potential lost

capital and interest, disruption to cash flows, and collection costs. The Group is exposed to this risk principally through trade receivables that

mainly consist of debtors related to the revenue from management and administration of collective investment schemes. The risk of default on

this debt is low as the debtors are all highly regulated financial institutions that is required to comply with stringent laws and regulations that in

most cases include conservative capital adequacy requirements and financial soundness measures.

All cash on call held by the Group is held with reputable banks with high credit quality.

All trade receivables that are not past due are expected to be recovered in full. At year-end, receivables amounting to R57 000 (2015: R22 000)

was past due and provided for as a doubtful debt. All credit risk is considered to be adequately provided for and the company does not hold any

collateral in respect of these financial assets.

56




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company


Liquidity risk

The following are the undiscounted contractual maturities of financial liabilities, including interest payments:

Non-derivative financial liabilities

Carrying amount

Payable within one

month

More than

one month

but not

exceeding

one year

Exceeding

one year

R'000 R'000 R'000 R'000

Trade and other payables 73 302 73 302 - -

Long-term liabilities 133 312 7 281 45 921 97 918

206 614 80 583 45 921 97 918


Carrying amount

Payable

within one

month

More than

one month

but not

exceeding

one year

Exceeding

one year R'000 R'000 R'000 R'000

Trade and other payables 136 687 - 136 687 -

Long-term liabilities 143 166 - 52 026 106 587

279 853 - 188 713 106 587


Carrying

amount

Payable

within one

month

More than

one month

but not

exceeding

one year

Exceeding

one year R'000 R'000 R'000 R'000

Related parties - - - -

Trade and other payables 14 545 14 545 - -


117 828 14 545 36 595 79 127

Company - Aug 2016Contractual cash flows

Group - Aug 2016

Contractual cash flows

Group - Aug 2015


57

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed

credit facilities. Management monitors rolling forecasts of the Group and company's liquidity reserves, borrowing facility and cash and cash

equivalents on the basis of expected cash flow. At the end of the reporting period the Group and company's current liabilities exceed its current assets. Management assessed the Group and company's cash flow forecasts and its access to secured credit, which includes the realisation of net

deferred tax assets of R10 million (2015: R21 million) in the next 12 months (refer to note 8). Based on the cash flow forecast and the timing of

cash inflows and outflows, management is of the opinion that the Group and company will be able to settle its short-term commitments as and when they become due.




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company



Carrying

amount

Payable

within one

month

More than

one month

but not

exceeding

one year

Exceeding

one year

R'000 R'000 R'000 R'000

Related parties 4 055 4 055 - -

Trade and other payables 7 814 - 7 814 -


137 080 4 055 51 674 97 865

Capital risk management

Total liabilities 304 043 315 807 124 897 137 080

Less: Liabilities carried at fair value through profit or loss (81 906) (110 554) (69 095) (95 006)

Less: Vendor finance liabilities (5 337) (1 744) - -

Less: Other non-interest bearing liabilities (170 731) (172 641) (21 614) (11 869)

Interest bearing debt 46 069 30 868 34 188 30 205

Total equity 220 030 189 495 238 778 249 691

Less: Equity attributable to NCIs 2 443 2 420 - -

Equity attributable to equity holders of the parent 222 473 191 915 238 778 249 691

Debt-equity ratio 21% 16% 14% 12%

30 Business combinations

Company - Aug 2015


Capital consists of capital and reserves as disclosed on the face of the statement of financial position. The Group's objectives when managing

capital are to safeguard the company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other

stakeholders, and to maintain an optimal capital structure to reduce the cost of capital projects. Management considers capital to be equivalent to

the amount reflected as equity on the face of the statement of financial position. In order to maintain or adjust the capital structure, the company

may adjust the amount of dividends paid to shareholders or sell assets to reduce debt.

The weighted average interest expense on interest bearing borrowings was 7.9% (2015: 8.8%).

The Group monitors capital using a ratio of interest-bearing debt (excluding vendor finance liabilities) to equity attributable to equity holders of

the parent and aims to maintain this ratio below 100%. The debt-equity ratio as at 31 August 2016 was as follows:

During the 2016 financial year, the Group acquired 15 (2015: 11) financial advisory client bases from various independent financial advisors for a

total purchase price of R6.4 million (2015: R2.6 million) which will be settled in cash on varying dates based on the respective agreements. These

acquisitions were accounted for as business combinations. In addition to the above, the Group acquired Saambou Board of Executors (Pty) Ltd

(subsequently renamed to Efficient Board of Executors (Pty) Ltd), a dormant company with no identifiable assets and liabilities, at a purchase

consideration of Rnil.

Due to the high number of homogeneous financial advisory client base acquisitions, it is impractical to disclose a description, the acquisition date

and primary reason for each acquisition, as well as the amount of revenue and profit or loss of each acquiree as if the acquisition occurred at the

beginning of the financial year.

58




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

30 Business combinations (continued)

Consideration transferred

Financial

advisory

client bases Total

Cash 1 967 1 967

Net liability raised as part of business combination 4 431 4 431

6 398 6 398

Financial advisory client bases

Acquisition-related costs

Identifiable assets acquired and liabilities assumed

Financial

advisory

client bases Total

Refer to note 24.3 for the detail of identifiable assets acquired and liabilities assumed 6 398 6 398

Less: Deferred tax raised on intangible assets (1 775) (1 775)

4 623 4 623

Customer related intangible assets

Goodwill

Goodwill arising from the acquisition has been recognised as follows:

Financial

advisory

client bases Total

Consideration transferred 6 398 6 398

Fair value of identifiable net assets (4 623) (4 623)

Goodwill 1 775 1 775

The valuation techniques used for measuring the fair value of intangible assets acquired were as follows:

Multi-period excess earnings method was used to calculate the customer related intangible assets. This method considers the present value of net

cash flows expected to be generated by the customer relationships, by excluding any cash flows related to contributory assets.

Group - 2016

The goodwill is attributable mainly to the skills and technical talent of the respective financial advisors and the synergies expected to be achieved

from integrating their client bases into Efficient Group's existing financial services business. None of the goodwill recognised is expected to be

deductible for tax purposes.

The table below summarises the acquisition date fair value of each major class of consideration transferred. The acquisitions did not contain any

contingent consideration arrangements.

Group - 2016

The consideration for the financial advisory client bases is structured as a lump sum cash payment with the remaining balance paid in future

instalments over a period of 12 to 36 months.

During 2016 the Group incurred no acquisition-related costs.

Group - 2016

59




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

31 Employee benefits

Retirement fund

Medical aid

32 Analysis of financial assets and liabilities

Financial assets Financial liabilities

Designated

as at fair

value

through

profit or loss

Available-for-

sale

Loans and

receivables

Held for

trading at

fair value

through

profit or loss

Amortised

cost Total Fair value

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Financial assets

Investments 6 503 1 383 - - - 7 886 7 886

Long-term receivables - - 7 177 - - 7 177 6 498

Trade and other receivables - - 77 799 - - 77 799 *

Cash and cash equivalents - - 90 118 - - 90 118 *

Total 6 503 1 383 175 094 - - 182 980 14 384

Financial liabilities

Long-term liability - - - 81 906 51 406 133 312 132 919

Trade and other payables - - - - 73 302 73 302 *

Total - - - 81 906 124 708 206 614 132 919

The policy of the Group is to provide retirement benefits to its employees through a defined contribution plan.

The Group is participating in the Momentum Funds at Work Provident Fund and the Allan Gray Group Retirement Annuity system. The Momentum

Funds at Work Provident Fund is an umbrella provident fund administered by Momentum (Pty) Ltd which is governed by the Pension Fund Act of

1956.

The contribution is paid by the Group companies to fund obligations for payment of retirement benefits charged against profit or loss as and when

it is incurred. The Group contributed R4 163 000 (2015: R3 247 000) for the year under review and 159 (2015: 114) employees are members of the

Momentum Funds at Work Provident Fund.

The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the

benefits relating to employee service in the current and prior periods.

The policy of the Group is to provide medical aid benefits to its employees.

The contribution is paid by the Group companies to Discovery Medical Scheme and charged against profit or loss as and when it is incurred. The

Group contributed R1 164 000 (2015: R997 000) for the year under review and 49 (2015: 32) employees are members of the medical scheme.

The carrying amounts of financial assets and financial liabilities approximate their fair values, except where indicated otherwise in notes 7 and 12,

and in the tables below.

Group - August 2016

60




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

32 Analysis of financial assets and liabilities (continued)


Designated

as at fair

value

through

profit or loss

Available-for-

sale

Loans and

receivables

Held for

trading at

fair value

through

profit or loss

Amortised


R'000 R'000 R'000 R'000 R'000 R'000 R'000

Financial assets

Investments 41 931 1 657 - - - 43 588 43 588




Total 41 931 1 657 129 651 - - 173 239 46 764




Total - - - 110 342 88 913 199 255 143 005


Designated

as at fair

value

through

profit or loss

Available-for-

sale

Loans and

receivables

Held for

trading at

fair value

through

profit or loss

Amortised


R'000 R'000 R'000 R'000 R'000 R'000 R'000

Financial assets

Investments 1 042 - - - - 1 042 1 042




Related party balances - - 48 634 - - 48 634

Total 1 042 - 56 949 - - 57 991 48 892




Related party balances - - - - - - *

Total - - - 69 095 48 733 117 828 103 283

Group - August 2015


61

82546




2016 2015 2016 2015

R'000 R'000 R'000 R'000

Group Company

32 Analysis of financial assets and liabilities (continued)


Designated

as at fair

value

through

profit or loss

Available-for-

sale

Loans and

receivables

Held for

trading at

fair value

through

profit or loss

Amortised


R'000 R'000 R'000 R'000 R'000 R'000 R'000

Financial assets

Investments 1 017 - - - - 1 017 1 017




Related party balances - - 39 316 - - 39 316 *

Total 1 017 - 58 565 - - 59 582 2 209



Trade and other payables - - - - 761 761 *

Related party balances - - - - 4 055 4 055 *

Total - - - 95 006 35 021 130 027 125 211

*

33 Events after the reporting date


The carrying amounts of these financial assets and financial liabilities approximate their fair values.

No significant events occurred subsequent to the financial year that requires any additional disclosure or adjustments to the financial statements.

62



Efficient Group Ltd shareholders analysis

The supplementary information presented in this schedule does not form part of the financial statements and is unaudited:

Portfolio size

Number of

shareholders % of total

Number of

shares held

'000 % of total

1 - 1 000 297 57.66% 67 0.07%

1 001 - 10 000 107 20.78% 464 0.51%

10 001 - 100 000 77 14.95% 2 907 3.21%

100 001 - 1 000 000 23 4.47% 7 407 8.18%

1 000 001 and over 11 2.14% 79 748 88.03%

Total 515 100.00% 90 593 100.00%

Shareholders' spread analysis

Non-public shareholders 30 5.84% 80 945 89.35%

- Directors 4 0.78% 11 733 12.95%

- Directors of subsidiaries 6 1.17% 1 109 1.22%

- Associates of directors and directors of subsidiaries 16 3.11% 42 502 46.92%

- Shareholding greater than 10% 2 0.39% 25 485 28.13%

- Employees restricted to trade in EFG shares 2 0.39% 116 0.13%

Public shareholders 485 94.16% 9 648 10.65%

Total 515 100.00% 90 593 100.00%

Shareholders with a holding greater than 5% of issued shares

DD Roodt 5 185 5.72%

H Weidhase 6 037 6.66%

Thebe Investment Corporation (Pty) Ltd 12 514 13.81%

Sasfin Financial Services (Pty) Ltd 12 971 14.32%

RH Walton (shares held in The RW Trust) 14 873 16.42%

TBI Strategic Partners (Pty) Ltd 16 964 18.73%

Total 68 544 75.66%

Aug-16

63

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