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AFRICAN DAWN ANNUAL REPORT 2020

Directors’ Report

The directors have pleasure in submitting their report on the financial statements of African Dawn Capital Limited and subsidiaries for the year
ended 29 February 2020.

1. Review of activities

General information
Nature of business

Afdawn was formed in 1998 as a micro finance company which, following its listing on the Alternative Exchange of the JSE in 2004, grew into a
niche finance provider. The Group, through its wholly-owned subsidiaries, Elite and Elite Two, provides unsecured personal loans (micro finance)
and provides online consulting to entrepreneurs, investors and advisors through its online YueDiligence platform.
Group details

The Group’s place of domicile and country of incorporation is the Republic of South Africa and it has an AltX listing on the JSE Limited.

The registered office and principal place of business is: 3rd floor The Village at horizon, Cnr Sonop & Ontdekkers Road, Horizon View,
Gauteng 1724.

Information relating to the subsidiaries of the company is in Note 5 of the financial statement.

Review of operations
The operating results and the state of affairs of the Group are fully set out in the attached statements of financial position, statements of profit or
loss and other comprehensive income, statements of changes in equity, statements of cash flows and the notes thereto.
The Group’s loss attributable to shareholders amounted to (R10.35)million (2019: (R9.4)million). The Net (Liability)/Asset Value decreased to
(R2.9million) (2019: R6.6 million). The Company's loss amounted to (R9.9) million (2019:(R3.9m). Net Asset Value of the company decreased to
R7.7million (2019: R 16.8million).

COVID-19 started to affect South Africa after the financial year end and before the financial statement authorisation date. The effect of the
pandemic is still being assessed for any financial effect. Operations have been affected by the lockdown instated by the SA government but
branches have been re-opened in compliance with the lockdown regulations for further details refer to note 31 events after the reporting period.

2. Going concern

The consolidated and separate financial statements have been prepared on the basis of accounting policies applicable to a going concern. This
basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent
obligations and commitments will occur in the ordinary course of business.
We draw attention to the fact that at 29 February 2020, the group and company had accumulated losses of Group R327 million (2019: R316.7
million), Company R316.4 million (2019: R306.5 million) and that the total liabilities exceed its assets by R2,9 million for the group.
The directors have considered the possible impacts that COVID-19 may have on the ability of the company to continue as a going concern and
conclude that the company remains a going concern given a range of possible future impacts which COVID-19 may have on the income as well as
expenditure in the next reporting period. The impacts already noted as a result of COVID-19 are also included in this assessment. Refer to note 31
for further details.

The material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going concern are outlined in
the table referred to in note 1.18 significant judgement of the financial statements.

3. Major transactions, events and disclosure changes

The major transactions and events during the year were:
• Related party transactions note 26 of the financial statements
• Specific Issue of Share for cash note 12 of the financial statements

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