MARGATE SAND B ODY CORPORATE...MARGATE SAND B ODY CORPORATE (SS No. 153/86 ) Trustees: S J Lamont, L Hansmeyer, J vdM Mans, B J Donaldson, H M Adams, P E S n yman, Gen G Pillay 4 April

MARGATE SAND BODY CORPORATE

(SS No. 153/86) Trustees: S J Lamont, L Hansmeyer, J vdM Mans, B J Donaldson, H M Adams, P E Snyman, Gen G Pillay

4 April 2017

NOTICE TO OWNERS

ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN IN TERMS OF RULE 17 OF THE SECTIONAL TITLE SCHEMES MANAGEMENT REGULATIONS, 2011 THAT THE ANNUAL GENERAL MEETING

OF THE MARGATE SANDS BODY CORPORATE WILL TAKE PLACE ON: DATE: FRIDAY, 12 MAY 2017 VENUE: FIRST GROUP (PTY) LIMITED

MARINE DRIVE 1ST FLOOR, MARGATE SANDS BUSINESS CENTRE MARGATE

TIME: 14H30 J Mey For Managing Agent FIRST GROUP (PTY) LTD P O Box 653, Margate 4275 Tel : 00 27 39 312 8170 Fax : 00 27 39 317 2883 E-mail : [email protected]

01

MARGATE SANDS BODY CORPORATE (SS No. 153/86)

TRUSTEES

S J Lamont L Hansmeyer J vdM Mans B J Donaldson H M Adams P E Snyman Gen G Pillay

MANAGING AGENTS

First Group (Pty) Limited Marine Drive P O Box 653 MARGATE MARGATE 4275 4275

Tel: (039) 317 2583 Fax: (039) 312 3753 e-mail: [email protected]

AUDITORS

Hugh Strickland & Company 68 Nelson Mandela Drive Port Shepstone 4240

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INDEX For your information we enclose the following documents:

PAGE NO

1. Agenda and General Information 05 2. Minutes of the Annual General Meeting held on 13 May 2016 06 – 09 3. Trustees Report 10 4. Insurance Cover Schedule 11 - 12

5. Levy Budget for the year ending 31 December 2017 13 - 15 6. 10 Year Maintenance and Replacement Plan 16 7. Audited Financial Statements for the year ended 31 December 2016 17 - 33

8. Form of Proxy 34 - 36 9. Trustees Nomination Form 37

03

4 April 2017

DEAR OWNERS

MARGATE SANDS BODY CORPORATE ANNUAL GENERAL MEETING

I write to you on behalf of Margate Sands Body Corporate. I enclose the Notice of the Annual General Meeting to be held on 12 May 2017 at 14h30 at First Group (Pty) Limited, 1st Floor, Margate Sands Business Centre, Marine Drive, Margate. Also enclosed are the proxy and nomination forms. Please take note that there have been various changes to the documentation and rules due to the promulgation of the Sectional Titles Schemes Management Act 2011 and its regulations. In order to view the Sectional Titles Schemes Management Act 2011 and its regulations, kindly refer to http://www.gov.za/sites/www.gov.za/files/40335_rg10649_gon1231.pdf. For any queries with regard to this meeting, feel free to contact Janet Hunter 039 312 8170 ([email protected]).

Yours faithfully J Mey For Managing Agent FIRST GROUP (PTY) LTD

P O Box 653, Margate 4275

Tel : 00 27 39 312 8170

Fax : 00 27 39 317 2883

E-mail : [email protected]

04


NOTICE is hereby given that the General Meeting of Owners of the Margate Sands Body Corporate will be held on Friday, 12 May 2017 at 14h30 at the First Group (Pty) Limited, 1

st Floor, Margate Sands Business

Centre, Marine Drive, Margate

_______________________________________________________________

AGENDA 1. Welcome and apologies

2. Confirmation of proxies, nominees and other persons representing members and issue of voting cards

3. Determination of quorum

4. Election of a person to chair the meeting, if necessary

5. Presentation of proof of Notice of meeting

6. Approval of Agenda [Resolution One]

7. Approval of the minutes of the previous general meeting held on 13 May 2016 [Resolution Two]

8. Matters arising, if any [Resolution Three]

9. Consideration of the Trustees’ Report

10. Insurance replacement values [Resolution Four] Approve the schedules of insurance replacement values referred to in Rule 23(3), with or without amendment.

11. Insurance [Resolution Five] Determine the extent of the insurance cover in terms of Rules 23(6), (7) and (8)

12. Budget for the year ending 31 December 2017 [Resolution Six] To approve the budget for the administrative and reserve funds for the next financial year.

13. Presentation and approval of 10-year Maintenance and Replacement Plan [Resolution Seven]

14. Financial Statements Consider the annual audited financial statements for the year ended 31 December 2016

15. Auditors [Resolution Eight] To appoint an auditor to audit the annual financial statements, and to approve the remuneration of the Auditor for the past year.

16. Number of Trustees [Resolution Nine] Determine the number of trustees to be elected to serve during the next financial year.

17. Election of Trustees [Resolution Ten] Trustees resign each year and have to be reappointed at each AGM

18. Scheme Rules There have been no amendments to the scheme’s rules and none have been lodged during the current financial year, as adopted by the body corporate under Section 10 of the Act.

19. To give directions or impose restrictions referred to in Section 7(1) of the Act [Resolution Eleven]

20. The financial year end of the Body Corporate [Resolution Twelve] In terms of the new Act the financial year runs from the first day of October to the last day of September of each year unless resolved otherwise by the Body Corporate in general meeting

21. General Deal with any new or further business at the discretion of the Chairman

22. Dissolve the meeting BY ORDER OF THE BOARD

First Group (Pty) Limited Per: J Mey Margate, 4 April 2017 05

BODY CORPORATE MARGATE SANDS SCHEME NO. 153/86

MINUTES OF THE ANNUAL GENERAL MEETING

HELD IN THE MARGATE SANDS CONFERENCE ROOM AT 14H30 ON FRIDAY, 13 MAY 2016

PRESENT: H M Adams General G Pillay General M Chetty JvdM Mans B J Donaldson P E Snyman W de Bruin A Bosch APOLOGIES S J Lamont L Hansmeyer IN ATTENDANCE: Representing First Resorts and Hotel Management (Pty) Ltd: J Mey G Hess J A Hunter Resort Staff: S Coetzee WELCOME Mr Snyman welcomed all present

1. PROXIES: 12 Proxies from owners and various Clubs in favour of Messrs P E Snyman, H M Adams, M Chetty, G Pillay,

A Bosch and the Chairman were tabled and accepted. 2. QUORUM A quorum having been established, the meeting was considered properly constituted. 3. APPOINTMENT OF A CHAIRMAN Mr Snyman was unanimously appointed to chair the meeting. 4. APPROVAL OF THE MINUTES OF THE ANNUAL GENERAL MEETING HELD ON 8 MAY 2015 The minutes were accepted as a true reflection of the proceedings of the previous Annual General Meeting

and confirmed unanimously.

Proposed: Mr Adams Seconded: Mr Donaldson

Page 1 06

5. REPORT BY THE CHAIRMAN The Chairman’s report had been circulated together with the notice of the meeting and was taken as read.

The financial position at 31 December 2015 was good, with cash resources of R4,263,429 and total reserves of R4,728,103. Levy debtors at 31 December 2015 amounted to R1,246,626 (over 120 days). Arrear accounts have all been handed over and as soon as legal processes are complete, the weeks will be sold. Provision for bad debt stood at R625,792. The refurbishment programme continued, with a further seven units completed during 2015. The ground floor is now complete and in total 20 units have been refurbished. The programme will continue from May 2016 and it is anticipated that another seven units will be upgraded this year. Each unit has its own DVD decoder, with 100 channels now available. A new Vox telephone system was installed at the resort. An energy-efficient pool heat pump system has been installed. Investigations are being carried out in an attempt to further conserve energy on geysers and air conditioners, and also to provide a battery back-up system for the lifts. It is once again stressed that the refurbishment is necessary to maintain our status as leaders in the Holiday and Catering Industry. At the recent RCI Oscas, Margate Sands achieved Gold Crown status, and at the Club Leisure Group Awards the resort was nominated for First Resorts Resort / Apartments and Chalets of the year, together with Desert Rose and Cape Gordonia. Margate Sands attained 4 Star Status in the Self-catering Exclusive category during the recent grading inspection carried out by the Tourism Grading Council of South Africa. Excellent ratings have been received from guests (Trip Advisor) and congratulations are due to the staff of Margate Sands for their superb service throughout 2015. Thanks are also due to my fellow trustees and to First Resorts, for their support and management skills throughout the year.

6. ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 The audited Annual Financial Statements for the year ended 31 December 2015 were adopted. Proposed: Mr Adams Seconded: General Chetty 7. APPROVAL OF THE ESTIMATES OF INCOME AND EXPENDITURE AND THE PROPOSED LEVY FOR THE YEAR

ENDING 31 DECEMBER 2016, AND CONFIRMATION OF THE INSURED VALUES The Chairman advised that the budget had been implemented in January 2016 and needed to be ratified at the Annual General Meeting. Mr Hess stated that the levy increase approved by the trustees was 7%.

Mr de Bruin queried : - Administration and Management Fees, which were the Managing Agent’s fee. - Cleaning contract, which was the outside contractor who cleaned the units - Commodities, which were soaps, hand cream, shower cap, etc. placed in units for each new arrival

Page 2

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- Contract Fee was the fee paid to Fun Holidays, the rental reservation company - Telephone and Fax expenses of R482,452 which included the purchase and installation of the new

Vox switchboard - Trustees travel and fees – It was noted that some of the trustees came from Johannesburg. Mr de Bruin expressed concern regarding the economy of the country and high levies having to be paid.

There were more and more people not managing to pay. He mentioned that there were eleven vacant units over the December period. Expenses should be investigated and costs reduced.

Mr Bosch enquired whether the bad debt in terms of levies was in line with the Industry trend. Mr Snyman

remarked that the money owed is less than 2% to 3% and steps have been taken to collect arrears. There were a number of deceased estates involved. Mr Snyman added that the clubs are no longer buying up weeks. The Body Corporate has to carry the cost. There is a provision for bad debt of R625,792. In the past year - R69,293 had been written off.

Mr Bosch queried whether there is a change in rentals and occupancy decreasing. Mr Snyman said there

are changes and there was concern. The rental company advertised. It was expected that there would be a 3% to 4% drop-off of people not being able to occupy due to illness, etc.

Mr de Bruin queried the occupancy for December 2015. Mr Snyman reported an 84% occupancy rate. Mr

de Bruin remarked that when peak weeks are not utilised it should be queried. Mr de Bruin queried the First Exchange Fee. Mr Snyman mentioned that the fee was included in the budget

to swop out weeks for other resorts. The First Exchange fee was R399, which was less that the RCI fee. Mr de Bruin had suggested previously that owners be given free accommodation to attend the Annual

General Meeting. Mr Snyman mentioned that this was not an option, asking whose weeks they would be utilising.

Mr de Bruin queried whether there is a profit made on the use of the vehicles. Mr Hess reported that the

vehicles were provided as a service to guests for excursions and to transport guests to and from the airport. Recoveries are reflected in sundry income.

The estimates of income and expenditure and the proposed levy for the year ending 31 December 2016

were approved without amendment. Proposed: General Chetty Seconded: Mr Adams Mr Mey stated that the building replacement value was R15,944 per square meter, which was considered

adequate. The insured values were approved without amendment. Proposed: H M Adams Seconded: General Chetty 8. APPOINTMENT OF AUDITORS AND CONFIRMATION OF THE AUDITORS’ REMUNERATION The current auditors, Hugh Strickland & Company, were reappointed and the Trustees were authorised to

remunerate them for their services. Proposed: H M Adams Seconded: General Pillay 9. NUMBER OF TRUSTEES It was resolved unanimously that the Board should comprise eight members.

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10. APPOINTMENT OF TRUSTEES

Nominations had been received for: S J Lamont P E Snyman L Hansmeyer B J Donaldson J van der Merwe Mans H M Adams M Chetty G Pillay The nominees were appointed unanimously. 11. TO GIVE DIRECTIONS OR IMPOSE RESTRICTIONS IN TERMS OF SECTION 39(1) OF THE ACT The meeting agreed unanimously that there was no necessity to impose restrictions on or give directions to

the Trustees. 12. DOMICILIUM CITANDI ET EXECUTANDI The domicilium of the Body Corporate was reconfirmed at the address of the Managing Agent. 13. OTHER BUSINESS

Mr Bosch enquired when an Ombudsman would be appointed in terms of the Sectional Titles Act, as this would evidently have a cost implication. Mr Adams replied that draft regulations had been published for the Human Settlements, Department of Community Schemes Ombud Service Acts. The Community Schemes Ombuds Regulations had been published but not as yet been finalised. There will be a cost implication. It was not very clear whether a Body Corporate would pay as an entity or in respect of every unit which would be calculated on the value of the property. It was unclear whether the Body Corporate would pay the fee or the individual members. The Act dealt with Shareblock Schemes and Home Ownership Schemes. Mr Adams presumed that this would not be finalised before the end of the year. Mr Adams mentioned another cost implication that calls for fidelity insurance requirements which was not finalised as yet.

The Chairman thanked everyone for attending the meeting. There being no further business, the meeting closed at 15h15. CONFIRMED THIS DAY OF 20 CHAIRMAN

Page 4

09

MARGATE SANDS BODY CORPORATE SS NO: 153/86

TRUSTEES REPORT

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016

Dear Owners

Welcome to the Annual General Meeting of the Body Corporate Margate Sands. The financial position at 31 December 2016 was good, with cash resources of R4,906,303 and total reserves of R5,345,465. Levy debtors at 31 December 2016 amounted to R1,366,742 (over 120 days). Arrear accounts have all been handed over and sufficient provision has been made for bad debts. The refurbishment programme continued, with a further eight units completed during 2016. The ground floor is now complete and in total 26 units have been refurbished. The programme will continue from May 2017 and it is anticipated that another eight units will be upgraded this year. 12 Units softs only have been completed. It is once again stressed that the refurbishment is necessary to maintain our status as leaders in the Holiday and Catering Industry. A pool chlorinator has been installed. At the recent RCI Oscas Margate Sands achieved Gold Crown status. Margate Sands attained 4 Star Status in the self-catering exclusive category during the recent grading by the Tourism Grading Council of South Africa. Excellent ratings have been received from guests (Trip Advisor) and congratulations are due to the staff of Margate Sands for their superb service throughout 2016. Thanks are also due to my fellow trustees and to First Resorts, for their support and management skills throughout the year. Sincerely L Hansmeyer Chairman

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BODY CORPORATE MARGATE SANDS - BEHEERLIGGAAM MARGATE SANDSSCHEDULE OF REPLACEMENT VALUES - SKEDULE VAN VERVANGINGSWAARDES

HOLLARD COMMERCIAL POLICY NO. SC HPM 3619289, FIRST014/0011, RENEWAL DATE 1 JANUARY

HOLLARD KOMMERSIELE POLIS NR. SC HPM 3619289, FIRST014/0011, HERNUWINGSDATUM 1 JANUARIE

INSURANCE VALUEUNIT D.K. VERSEKERINGSWAARDE CONTENTS

EENHEID AREA P.Q. BUILDING INHOUDGEBOUE

1 139 0,0151 2 216 234 365 0792 139 0,0151 2 216 234 365 0793 139 0,0151 2 216 234 365 0794 139 0,0151 2 216 234 365 0795 139 0,0151 2 216 234 365 0796 139 0,0151 2 216 234 365 0797 139 0,0151 2 216 234 365 0798 129 0,0140 2 056 782 365 0799 129 0,0140 2 056 782 365 079

10 129 0,0140 2 056 782 365 07911 129 0,0140 2 056 782 365 07912 129 0,0140 2 056 782 365 07913 129 0,0140 2 056 782 365 07914 129 0,0140 2 056 782 365 07915 122 0,0133 1 945 173 365 07916 122 0,0133 1 945 173 365 07917 122 0,0133 1 945 173 365 07918 122 0,0133 1 945 173 365 07919 122 0,0133 1 945 173 365 07920 122 0,0133 1 945 173 365 07921 122 0,0133 1 945 173 365 07922 117 0,0127 1 865 454 365 07923 117 0,0127 1 865 454 365 07924 117 0,0127 1 865 454 365 07925 117 0,0127 1 865 454 365 07926 117 0,0127 1 865 454 365 07927 117 0,0127 1 865 454 365 07928 117 0,0127 1 865 454 365 07929 116 0,0126 1 995 919 365 07930 116 0,0126 1 995 919 365 07931 116 0,0126 1 995 919 365 07932 116 0,0126 1 995 919 365 07933 116 0,0126 1 995 919 365 07934 116 0,0126 1 995 919 365 07935 116 0,0126 1 995 919 365 07936 116 0,0126 1 995 919 365 07937 116 0,0126 1 995 919 365 07938 116 0,0126 1 995 919 365 07939 116 0,0126 1 995 919 365 07940 116 0,0126 1 995 919 365 07941 116 0,0126 1 995 919 365 07942 116 0,0126 1 995 919 365 07943 116 0,0126 1 995 919 365 07944 116 0,0126 1 995 919 365 07945 116 0,0126 1 995 919 365 07946 116 0,0126 1 995 919 365 07947 116 0,0126 1 995 919 365 07948 116 0,0126 1 995 919 365 07911

INSURANCE VALUE

UNIT D.K. VERSEKERINGSWAARDE CONTENTS

EENHEID AREA P.Q. BUILDING INHOUD

GEBOUE

49 116 0,0126 1 995 919 365 079

50 116 0,0126 1 995 919 365 079

51 116 0,0126 1 995 919 365 079

52 116 0,0126 1 995 919 365 079

53 116 0,0126 1 995 919 365 079

54 116 0,0126 1 995 919 365 079

55 116 0,0126 1 995 919 365 079

56 116 0,0126 1 995 919 365 079

57 116 0,0126 1 995 919 365 079

58 116 0,0126 1 995 919 365 079

59 116 0,0126 1 995 919 365 079

60 116 0,0126 1 995 919 365 079

61 116 0,0126 1 995 919 365 079

62 116 0,0126 1 995 919 365 079

63 116 0,0126 1 995 919 365 079

64 1165 0,1268 18 574 816

65 414 0,0451 6 600 836

Underground cabling 665 000

Common Property, sales office/ 29 608 319

Gemeenskaplike Eiendom, verkoopskantoor

Switchboard/Skakelbord 247 584

CCTV, fax, Speedpoint & TV set/ 32 210

CCTV, faks, Speedpoint & TV-stel

Motor vehicles/motorvoertuig 405 510

Contents Office & Storerooms/Inhoud Kantoor & Stoorkamers 371 373

Building combined 1,0000 224 252 865

Crisis 24 Emergency Evacuation R 50 000

Wrongful Arrest & Defamation R 50 000

Legal Defence Costs R 50 000

Top-Up / Passenger R 40 000 000

GUARDRISK POLICY NO FIRST014/0015, 1 JANUARY

Limit of Indemnity - Each Trustees R 10 000 000

Limit of Indemnity R 1 000 000

NEW NATIONAL TOP UP POLICY REF. DBN9405COM, RENEWAL DATE 1 JANUARY

Excess Layer Liability R 20 000 000

CAMARGUE POLICY FIRST014/0017, RENEWAL 1 JANUARY


CURNOW GARRUN POLICY NO. S03282 10, RENEWAL 1 JANUARY


HOLLARD POLICY SC HPM 3519289, RENEWAL DATE 1 JANUARY

BODY CORPORATE MARGATE SANDS - BEHEERLIGGAAM MARGATE SANDS

SCHEDULE OF REPLACEMENT VALUES - SKEDULE VAN VERVANGINGSWAARDES

HOLLARD POLICY NO. SC HPM 3619289, RENEWAL DATE 1 JANUARY

HOLLARD POLIS NR. SC HPM 3619289, HERNUWINGSDATUM 1 JANUARIE

HOLLARD POLICY NO. FIRST014/0011, RENEWAL DATE 1 JANUARY

GENLIB POLICY NO. FIRST014/0008, RENEWAL DATE 1 JANUARY

12

BODY CORPORATE BUDGET

RESORT:BODY CORPORATE MARGATE SANDS

YEAR ENDING: 31 DECEMBER 2017

Number of Timeshare Units: 63

Number of Timeshare Weeks: 49 (52 weeks less 3 maintenance weeks)

0,38

PRIOR BUDGET ACTUAL

Schedule Rands % of Per Week Rands % of Per Week Current

Expend Expend Year

LEVY INCOME A 17 175 934 95 350 529 15 903 642 95 324 564 15 903 642

SUNDRY INCOME B 998 896 6 20 386 888 282 5 18 128 1 003 184

REFURBISHMENT LEVY FUND 3 997 665 22 81 585 3 997 665 24 81 585 3 997 665

TOTAL INCOME 22 172 495 452 500 20 789 589 124 424 277 20 904 491

EXPENDITURE 18 119 103 100 369 778 16 783 202 100 342 514 20 257 117

Administration C 1 470 876 8 30 018 1 403 512 8 28 643 1 607 645

On Site expenses D 3 463 309 19 70 680 3 162 322 19 64 537 2 665 791

Property expenses E 7 496 426 41 152 988 6 930 183 41 141 432 6 132 250

Management fee F 1 109 495 6 22 643 1 027 310 6 20 966 1 027 310

Refurbishment G 0 0 0 0 0 0 5 011 765

Staffing H 4 578 997 25 93 449 4 259 875 25 86 936 3 812 356

NET INCOME/(DEFICIT) BEFORE TAXATION 4 053 392 22 82 722 4 006 387 24 81 763 647 374

Taxation 0 0 30 012

Net Surplus after tax 4 053 392 4 006 387 617 362

Transfer to reserve fund 55 727 8 722 1 631 462

Transfer to Refurbishment levy fund 3 997 665 3 997 665 3 997 665

Transfer from reserve fund 0 0 5 011 765

NET INCOME/(DEFICIT) AFTER TAXATION 0 0 0

SCHEDULE "A" - LEVY INCOME PRIOR BUDGET ACTUAL

Rands % of Per Week Rands % of Per Week Current

Expend Expend Year

Levies - Timeshare 17 175 934 95 350 529 15 903 642 95 324 564 15 903 642

17 175 934 95 350 529 15 903 642 95 324 564 15 903 642

SCHEDULE "B" - SUNDRY INCOME

Levy - sec 64 shops 252 787 1 5 159 231 684 1 4 728 231 684

Levy - sec 64 parking bays 74 676 0 1 524 72 677 0 1 483 72 677

Levy - sec 65 91 433 1 1 866 83 921 1 1 713 83 921

Interest earned - bank 298 000 2 6 082 220 000 1 4 490 243 686

Interest earned - levy 37 000 0 755 37 000 0 755 5 701

Commission 0 0 0 0 0 0 400

Disc not taken 0 0 0 44 000 0 898 143 432

Provision for bad debt adjustment 0 0 0 0 0 0 129 964

Sundry 245 000 1 5 000 199 000 1 4 061 91 720

998 896 6 20 386 888 282 5 18 128 1 003 184

BUDGET

BUDGET

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FIRST RESORTS Page 2



YEAR ENDING:31 DECEMBER 2017

PRIOR BUDGET ACTUAL


SCHEDULE "C" - ADMINISTRATION Expend Expend Year

Advertising and signage 110 141 1 2 248 110 141 1 2 248 77 978

AGM costs 8 000 0 163 8 000 0 163 4 629

Audit fees 59 984 0 1 224 55 541 0 1 133 55 541

Audit fees - prior year 0 0 0 0 0 0 591

Bad debts 100 000 1 2 041 100 000 1 2 041 533 130

Bank and credit card charges 59 388 0 1 212 51 443 0 1 050 52 957

Collection costs 30 000 0 612 30 000 0 612 41 221

Computer expenses 113 482 1 2 316 105 076 1 2 144 105 076

Computer expenses - other 185 000 1 3 776 185 000 1 3 776 73 803

Contract fees - Reservation service (Fun Holidays) 73 173 0 1 493 73 173 0 1 493 58 316

Depreciation 0 0 0 0 0 0 81 774

Donations 700 0 14 700 0 14 0

First Exchange Fee 106 502 1 2 174 100 328 1 2 048 103 456

Interest & penalties 0 0 0 0 0 0 45

Managers & trustees conference 22 110 0 451 22 110 0 451 3 336

Motor vehicle expenses 129 028 1 2 633 129 028 1 2 633 68 850

Postage & courier 13 422 0 274 13 422 0 274 12 324

Printing & stationery 257 951 1 5 264 257 951 2 5 264 214 381

Secretarial fees 7 426 0 152 6 876 0 140 4 435

Subscriptions 82 880 0 1 691 48 073 0 981 25 270

Trustees fees 68 040 0 1 389 63 000 0 1 286 51 000

Trustees travelling 43 650 0 891 43 650 0 891 39 532

1 470 876 8 30 018 1 403 512 8 28 643 1 607 645

PRIOR BUDGET ACTUAL

SCHEDULE "D" - ON SITE EXPENSES Rands % of Per Week Rands % of Per Week Current

Expend Expend Year

Cleaning material 121 742 1 2 485 78 545 0 1 603 105 409

Commodities 423 405 2 8 641 314 225 2 6 413 421 797

Flowers & decorations 15 149 0 309 15 149 0 309 8 127

Guest entertainment 380 000 2 7 755 351 000 2 7 163 416 637

Laundry expenses 961 692 5 19 626 890 455 5 18 173 817 058

M Net/DSTV expenses 262 911 1 5 366 220 429 1 4 499 245 374

Pest control 60 019 0 1 225 55 573 0 1 134 56 947

Replacements 998 231 6 20 372 998 231 6 20 372 417 635

Telephones 220 123 1 4 492 220 123 1 4 492 163 096

Telephones - prior year 0 0 0 0 0 0 0

TV Licences 20 036 0 409 18 593 0 379 13 711

3 463 309 19 70 680 3 162 323 19 64 537 2 665 791

BUDGET

BUDGET

14

FIRST RESORTS Page 3



YEAR ENDING:31 DECEMBER 2017

PRIOR BUDGET ACTUAL


SCHEDULE "E" - PROPERTY COSTS Expend Expend Year

Electricity 1 172 645 6 23 932 1 131 546 7 23 093 967 559

Fire fighting equipment 15 797 0 322 14 627 0 299 12 167

Insurance 273 606 2 5 584 248 732 1 5 076 217 402

Pool & garden 101 665 1 2 075 92 423 1 1 886 140 108

Rates, refuse & sewerage 688 553 4 14 052 625 958 4 12 775 688 451

Rent 199 184 1 4 065 184 429 1 3 764 188 507

Repairs & maintenance 3 617 640 20 73 829 3 334 889 20 68 059 3 123 385

Sanitation 279 158 2 5 697 253 780 2 5 179 63 757

Security 861 752 5 17 587 783 411 5 15 988 659 401

Water 286 427 2 5 845 260 388 2 5 314 71 513

7 496 426 41 152 988 6 930 183 41 141 432 6 132 250

SCHEDULE "F" - MANAGEMENT FEE

1 109 495 6 22 643 1 027 310 6 20 966 1 027 310

SCHEDULE "G" - REFURBISHMENT

0 0 0 0 0 0 5 011 765

BUDGET PRIOR BUDGET ACTUAL


SCHEDULE "H" - STAFFING Expend Expend Year

Cleaning contract 2 080 194 11 42 453 1 923 298 11 39 251 1 848 737

Salary burden 2 371 896 13 48 406 2 220 422 13 45 315 1 857 242

Staff expenses 46 542 0 950 43 095 0 879 60 523

Staff training 29 627 0 605 26 934 0 550 34 249

Uniforms 50 738 0 1 035 46 126 0 941 11 605

4 578 997 25 93 449 4 259 875 25 86 936 3 812 356

Levy 2016 Early bird Levy 2017 Early bird Refurb

settlement settlement levy

Weekly levy per unit 5 423 5 152 5 857 5 564,35 1 295

Vat 760 722 820 779,40 181

Total 6 183 5 874 6 678 6 343,74 1 476

BUDGET

15

16

The Body Corporate of Margate Sands(Registration number 153/86)

Financial statementsfor the year ended 31 December 2016

Hugh Strickland & CompanyChartered Accountants (SA)Registered AuditorsIssued 13 April 2017

17

The Body Corporate of Margate Sands(Registration number 153/86)Financial Statements for the year ended 31 December 2016

Index

The reports and statements set out below comprise the financial statements presented to the memebers:

Index Page

Trustees' Responsibilities and Approval 2

Independent Auditor's Report 3 - 4

Trustees' Report 5

Statement of Financial Position 6

Detailed Levy Fund Statement 7 - 8

Statement of Changes in Funds 9

Statement of Cash Flows 10

Accounting Policies 11 - 12

Notes to the Financial Statements 13 - 16

Level of assurance

These financial statements have been audited in compliance with the applicable requirements of the Sectional Titles SchemesManagement Act, 2011, the Sectional Titles Schemes Management Regulations, 2016 and the Management Rules of the bodycorporate established in terms thereof.

Preparer

Desiree GovenderChartered Accountant (SA)

118


Trustees' Responsibilities and Approval

The trustees are required to maintain adequate accounting records and are responsible for the content and integrity of thefinancial statements and related financial information included in this report. It is their responsibility to ensure that the financialstatements fairly present the state of affairs of the body corporate as at the end of the financial year and the results of itsoperations and cash flows for the period then ended, in conformity with the International Financial Reporting Standard for Smalland Medium-sized Entities. The external auditors are engaged to express an independent opinion on the financial statements.

The financial statements are prepared in accordance with the International Financial Reporting Standard for Small andMedium-sized Entities and are based upon appropriate accounting policies consistently applied and supported by reasonableand prudent judgments and estimates.

The trustees acknowledge that they are ultimately responsible for the system of internal financial control established by thebody corporate and place considerable importance on maintaining a strong control environment. To enable the trustees tomeet these responsibilities, the board sets standards for internal control aimed at reducing the risk of error or loss in a costeffective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effectiveaccounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitoredthroughout the body corporate and all employees are required to maintain the highest ethical standards in ensuring the bodycorporate’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of riskmanagement in the body corporate is on identifying, assessing, managing and monitoring all known forms of risk across thebody corporate. While operating risk cannot be fully eliminated, the body corporate endeavours to minimise it by ensuring thatappropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined proceduresand constraints.

The trustees are of the opinion, based on the information and explanations given by management, that the system of internalcontrol provides reasonable assurance that the financial records may be relied on for the preparation of the financialstatements. However, any system of internal financial control can provide only reasonable, and not absolute, assuranceagainst material misstatement or loss.

The trustees have reviewed the body corporate’s cash flow forecast for the year to 31 December 2017 and, in the light of thisreview and the current financial position, they are satisfied that the body corporate has or has access to adequate resources tocontinue in operational existence for the foreseeable future.

The external auditors are responsible for independently auditing and reporting on the body corporate's financial statements.The financial statements have been examined by the body corporate's external auditors and their report is presented on pages3 to 4.

The financial statements set out on pages 6 to 16, which have been prepared on the going concern basis, were approved bythe board of trustees on 13 April 2017 and were signed on its behalf by:

Trustee Trustee

219

Independent Auditor's Report

To the Members of The Body Corporate of Margate Sands

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of The Body Corporate of Margate Sands set out on pages 6 to 16, whichcomprise the statement of financial position as at 31 December 2016, and the detailed levy fund statement, statement ofchanges in funds and statement of cash flows for the year then ended, and notes to the financial statements, including asummary of significant accounting policies.

In our opinion, the financial statements present fairly, in all material respects, the financial position of The Body Corporate ofMargate Sands as at 31 December 2016, and its financial performance and cash flows for the year then ended inaccordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the requirements ofthe Sectional Titles Schemes Management Act, 2011, the Sectional Titles Schemes Management Regulations, 2016 and theManagement Rules of the body corporate established in terms thereof.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standardsare further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We areindependent of the body corporate in accordance with the Independent Regulatory Board for Auditors Code of ProfessionalConduct for Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits offinancial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Codeand in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code isconsistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (PartsA and B). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Other Information

The trustees are responsible for the other information. The other information comprises the Trustees' Report as set out onpage 5, but does not include the financial statements and our auditor's report thereon.

Our opinion on the Financial Statements does not cover the other information and we do not express an audit opinion or anyform of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained inthe audit, or otherwise appears to be materially misstated. If, based on the work We have performed, we conclude that thereis a material misstatement of this other information, we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of the Trustees for the Financial Statements

The trustees are responsible for the preparation and fair presentation of the financial statements in accordance with theInternational Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Sectional TitlesSchemes Management Act, 2011, the Sectional Titles Schemes Management Regulations, 2016 and the ManagementRules of the body corporate established in terms thereof, and for such internal control as the trustees determine isnecessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraudor error.

In preparing the financial statements, the trustees are responsible for assessing the body corporate’s ability to continue as agoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accountingunless the trustees either intend to liquidate the body corporate or to cease operations, or have no realistic alternative but todo so.

Auditor's responsibilities for the Audit of the Financial Statements

320

Independent Auditor's Report

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with InternationalStandards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or errorand are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these financial statements.As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintainprofessional scepticism throughout the audit. We also

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of thebody corporate’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the trustees.

Conclude on the appropriateness of the trusteess' use of the going concern basis of accounting and based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the body corporate’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. However, future events or conditions may causethe body corporate to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, andwhether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with the trustees regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In accordance with the Management Rules of the body corporate as adopted in terms of Regultion 6 of the Sectional TitlesSchemes Management Regulations, 2016 Rules 26(5)(c)(ii), (iii) and (iv), we report as follows:

Compliance findings with accounting requirements (Rule 26(5)(c)(ii))

The trustees are responsible to ensure that the body corporate complies with management rules 21,24 and 26adopted interms of the Sectional Titles Schemes Management Regulations, 2016, including the implementation of systems, processesand internal control the trustees determine are necessary in the circumstances.

If during the course of our audit of financial statements of the body corporate we become aware of any instances of non-compliance with the accounting requirements set out in management rule 21,24 and 26, we are required to report ourfindings. We have nothing to report in this regard.

Management of the body corporate's financial affairs and funds (Rules 26(5)(c)(iii) and (iv))

In terms of the relevant International Standards applicable to audit, review and other assurance engagements we wereunable to conduct an engagement relating to whether the books of account of the body corporate have been kept and itsfunds have been managed so as to provide a reasonable level of protection against theft or fraud, and whether the financialaffairs of the body corporate appear to be effectively managed, as required by Rules 26(5)(c)(iii) and (iv). We have notperformed any audit, review or other assurance engagement in relation to these matters and accordingly we do not expressany assurance opinion or conclusion thereon.

__________________________________Hugh Strickland & CompanyHugh StricklandPartnerChartered Accountant (SA)Registered Auditor

13 April 2017

421


Trustees' Report

The trustees submit their report for the year ended 31 December 2016.

1. Review of activities

Main business and operations

The entity is a body corporate.

2. Events after the reporting period

The trustees are not aware of any matter or circumstance arising since the end of the financial year that has a material impacton the financial statements.

3. Trustees

The trustees of the body corporate during the year and to the date of this report are as follows:

BJ DonaldsonG PillayHM AdamsJ v d M MansL HansmeyerM Chetty Deceased 14 November

2016PE SnymanSJ Lamont

4. Managing Agent

The managing agent of the body corporate is First Resorts and Hotel Management Proprietary Limited of:

Business address1st FloorMargate Sands Business CentreMarine DriveMargate4275

Postal addressPO Box 653Margate4275

5. Auditors

Hugh Strickland & Company were the auditors for the year under review and their re-appointment depends on a resolutiontaken to the effect by members at the forthcoming annual general meeting.

522


Statement of Financial Position as at 31 December 20162016 2015

Note(s) R R

Assets

Non-Current AssetsProperty, plant and equipment 2 74 959 156 734

Current AssetsInventories 5 105 479 240 561Accounts receivable 3 1 149 276 983 797Prepayments 4 446 858 480 290Current tax receivable 70 447 -Cash and cash equivalents 6 4 906 303 4 263 429

6 678 363 5 968 077

Total Assets 6 753 322 6 124 811

Funds and Liabilities

Owners' funds and reservesReserves 5 345 465 4 728 103

Liabilities

Current LiabilitiesAccounts payable 9 421 085 557 083Current tax payable - 1 575Levies received in advance 986 772 838 050

1 407 857 1 396 708

Total Funds and Liabilities 6 753 322 6 124 811

623


Detailed Levy Fund Statement2016 2015

Note(s) R R

RevenueNormal levies 16 435 358 15 214 473Sale of goods 51 322 94 515Special levies 3 997 665 3 997 665

10 20 484 345 19 306 653

Cost of salesOpening stock (240 561) (227 591)Purchases 81 723 (83 856)Closing stock 105 479 240 561

(53 359) (70 886)

Gross surplus 20 430 986 19 235 767

Other incomeBad debt provision adjustment 129 964 75 914Commissions 400 153Interest 12 249 387 233 477Sundry income 93 759 192 960

473 510 502 504

Expenses (Refer to page 8) (20 257 077) (16 152 654)

Operating surplus 647 419 3 585 617Finance costs 13 (45) (5 233)

Surplus before taxation 647 374 3 580 384Taxation 14 (30 012) (95 729)

Surplus for the year 617 362 3 484 655

724


Detailed Levy Fund Statement2016 2015

Note(s) R R

Operating expensesAdministration and management fees 1 027 308 951 213Advertising 77 978 43 667AGM expenses 4 629 4 698Assessment rates and municipal charges 688 451 539 989Auditor's remuneration 15 56 132 51 426Bad debts 533 130 67 293Bank charges 52 965 48 428Cleaning contract 1 848 737 1 804 495Cleaning costs 105 409 86 247Collection costs 41 221 66 893Commodities 421 797 381 766Computer expenses 178 879 281 952Conference costs 3 336 -Contract fees 58 316 53 015Depreciation 81 774 81 774Donations - 350Electricity 967 559 915 421Employee costs 1 857 242 1 818 820Entertainment 416 637 271 876Fines and penalties - 400Fire fighting equipment 12 167 5 471First Interchange fee 103 456 97 592Flowers and decorations 8 127 12 398Insurance 217 402 215 747Laundry expenses 817 058 805 604Motor vehicle expenses 55 084 71 317Multichoice 245 374 186 487Pest control 56 947 56 647Postage 12 324 10 302Printing and stationery 214 381 185 995Refurbishments 5 011 765 2 786 122Rentals 188 507 180 030Repairs and maintenance 20 3 263 493 1 844 731Replacements 417 635 505 503Sanitation 63 757 224 482Secretarial fees 4 435 5 211Security 659 401 584 744Staff welfare 60 523 44 037Subscriptions 25 270 50 737Telephone and fax 163 096 482 452Television license 13 711 13 282Training 34 249 26 467Travel 53 298 42 307Trustees fees 21 51 000 54 000Uniforms 11 605 13 682Valuation costs - 2 960Water 71 512 174 624

20 257 077 16 152 654

825


Statement of Changes in FundsSpecial reserve Maintenance

reserveTotal reserves Accumulated

surplusTotal funds

R R R R R

Balance at 01 January 2015 1 389 150 - 1 389 150 (145 702) 1 243 448

Surplus for the year - - - 3 484 655 3 484 655Transfer to reserve - 3 338 953 3 338 953 (3 338 953) -

Balance at 01 January 2016 1 389 150 3 338 953 4 728 103 - 4 728 103

Surplus for the year - - - 617 362 617 362Transfer to refurbishment levyfund

- 3 997 665 3 997 665 (3 997 665) -

Transfer to reserve fund - 1 631 462 1 631 462 (1 631 462) -Transfer from reserve fund - (5 011 765) (5 011 765) 5 011 765 -

Balance at 31 December 2016 1 389 150 3 956 315 5 345 465 - 5 345 465

Note(s) 7 8

926


Statement of Cash Flows2016 2015

Note(s) R R

Cash flows from operating activities

Cash generated from operations 16 346 844 3 056 404Interest income 249 387 233 477Finance costs (45) (5 233)Tax paid 17 (102 034) (85 337)

Net cash from operating activities 494 152 3 199 311

Cash flows from financing activities

Movement in other liability 148 722 (1 444 734)

Total cash movement for the year 642 874 1 754 577Cash at the beginning of the year 4 263 429 2 508 852

Total cash at end of the year 6 4 906 303 4 263 429

1027


Accounting Policies

1. Presentation of financial statements

The financial statements have been prepared in accordance with the International Financial Reporting Standard for Small andMedium-sized Entities, and the Sectional Titles Schemes Management Act, 2011, the Sectional Titles Schemes ManagementRegulations, 2016 and the Management Rules of the body corporate established in terms thereof. The financial statementshave been prepared on the historical cost basis, and incorporate the principal accounting policies set out below. They arepresented in South African Rands.

These accounting policies are consistent with the previous period.

1.1 Property, plant and equipment

Property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses.

Cost include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurredsubsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item ofproperty, plant and equipment, the carrying amount of the replaced part is derecognised.

Depreciation is provided using the straight-line method to write down the cost, less estimated residual value over the useful lifeof the property, plant and equipment as follows:

Item Depreciation method Average useful life

Motor vehicles 5 Years

The residual value, depreciation method and useful life of each asset are reviewed only where there is an indication that therehas been a significant change from the previous estimate.

Gains and losses on disposals are determined by comparing the proceeds wit the carrying amount and are recognised in profitor loss in the period.

1.2 Tax

Current tax assets and liabilities

Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respectof current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset.

The tax liability reflects the effect of the possible outcomes of a review by the tax authorities.

Tax expenses

Tax expense is recognised in the same component of total comprehensive income or equity as the transaction or other eventthat resulted in the tax expense.

The Body Corporate is taxed in terms of Section 10(1)(e) of the Income Tax Act.

1.3 Inventories

Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell, on the first-in, first-out(FIFO) basis.

1.4 Revenue

Levies received comprise levies receivable from unit owners, in proportion to the individed shares in sections owned. Leviesare raised annually in this manner.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

1.5 Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

1128


Accounting Policies

1.6 Maintenance reserve

Amounts are set aside from time to time, to create a reserve for anticipated future major items of maintenance,repairs andrenewal which do not occur on an annual basis.

1.7 Income and expenditure

The body corporate is non-profit making concern. Income is derived from unit holders in the form of levies determined to covercover the normal running expenses of the body corporate.

1.8 Special reserve

Amounts are set aside from time to time, to create a reserve for anticipated future major items of maintenance, repairs andrenewal which do not occur on an annual basis.

1229


Notes to the Financial Statements2016 2015

R R

2. Property, plant and equipment

2016 2015

Cost Accumulateddepreciation

Carrying value Cost Accumulateddepreciation

Carrying value

Motor vehicles 786 286 (711 327) 74 959 786 286 (629 552) 156 734

Reconciliation of property, plant and equipment - 2016

Openingbalance

Depreciation Total

Motor vehicles 156 734 (81 774) 74 959

Reconciliation of property, plant and equipment - 2015

Openingbalance

Depreciation Total

Motor vehicles 238 508 (81 774) 156 734

3. Accounts receivable

Levies receivable 1 034 660 869 034Deposits 108 602 102 901Sundry debtor - Section 65 4 986 3 612Discount taken in advance (8 362) -Debtors receivable 9 390 8 250

1 149 276 983 797

Levies Receivable-Current 40 924 96 752-30 Days 3 476 39 141-60 Days 8 579 13 612-90 Days 9 289 9 054-120 Days 25 564 13 727-Over 120 Days 1 366 742 1 246 626-Provisions for bad debts (419 914) (549 878)

1 034 660 869 034

4. Prepayments

Hibiscus Coast Municipality-rates 436 856 470 023SABC TV License 10 002 10 267

446 858 480 290

5. Inventories

Shop 27 973 148 187Consumables 77 506 92 374

105 479 240 561

1330



R R

6. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand 7 493 7 293Bank balances 4 898 810 4 256 136

4 906 303 4 263 429

7. Special reserve

Contributions to special reserve fund 1 389 150 1 389 150

8. Maintenance reserve

Balance beginning of the year 3 338 953 -Transfer to reserve 617 362 3 338 953

3 956 315 3 338 953

9. Accounts payable

Sundry creditors 54 904 526 249VAT 67 442 30 834Debtors in credit 298 739 -

421 085 557 083

Accounts payable are all current.

10. Income

Sale of goods 51 322 94 515Levies 16 435 358 15 214 473Special levies 3 997 665 3 997 665

20 484 345 19 306 653

11. Other income

Commissions 400 153Sundry income 93 759 192 960Bad debts provision adjustment 129 964 75 914

224 123 269 027

12. Investment revenue

Interest revenueBank 243 686 199 613Interest on debtors - 28 838Interest on deposits 5 701 5 026

249 387 233 477

13. Finance costs

Interest paid 45 5 233

1431



R R

14. Taxation

Major components of the tax expense

CurrentLocal income tax - current period 30 012 95 729

15. Auditor's remuneration

Fees 55 541 51 426Adjustment for previous year 591 -

56 132 51 426

16. Cash generated from operations

Surplus before taxation 647 374 3 580 384Adjustments for:Depreciation 81 774 81 774Interest received (249 387) (233 477)Finance costs 45 5 233Changes in working capital:Inventories 135 082 (12 970)Accounts receivable (165 479) (455 273)Prepayments 33 432 (68 111)Accounts payable (135 997) 158 844

346 844 3 056 404

17. Tax paid

Balance at beginning of the year (1 575) 8 817Current tax for the year recognised in surplus or deficit (30 012) (95 729)Balance at end of the year (70 447) 1 575

(102 034) (85 337)

18. Related parties

`

RelationshipsManaging agent First Resorts and Hotel Management Proprietary

Limited

Related party transactions

Management fees paid to (received from) related partyFirst Resorts and Hotel Management Proprietary Limited 1 027 308 951 213

19. Insurance

The body corporate is insured with Hollard Insurance Company and the policy is renewable annually on 01 January.

1532



R R

20. Repairs and maintenance

Aircoditioning 558 296 342 111Building 305 924 71 573Cleaning 312 811 253 696Consumables 1 708 899Electrical 484 830 270 107Furniture and fittings 431 862 208 213Lifts 112 670 106 238Locks and keys 45 862 18 963Painting 560 169 188 389Plumbing 219 820 149 582Pool and garden 140 108 100 585Television repairs 39 369 81 189Tiling 48 521 33 075Windows 1 544 20 111

3 263 494 1 844 731

21. Trustees' fees

Trustees are paid R3,000 per meeting attended.

1633

NOTIFICATION, APPOINTMENT OF PROXY AND ACCEPTANCE MANDATE

Note: In terms of section 6(5) of the Sectional Titles Schemes Management Act 2011 a member must be

represented in person or by proxy at meetings of body corporate and a person may not act as a proxy for more

than two members of the body corporate.

Scheme Details

Name of Scheme MARGATE SANDS BODY CORPORATE

SS Number / Year 153/86

To: FIRST GROUP (PTY) LIMITED

I/We, the undersigned owner(s) and member(s) give notice to the body corporate of the above scheme that I/we

appoint a proxy to speak and vote at the general meetings (including adjournments) and on the terms set out

below.

Member name(s):

Unit numbers:

Proxy name (insert one full name):

This appointment applies to: (tick one of the following and complete as necessary)

The general meeting to be held on: 12 / 05 / 2017

All general meetings held before: □□ / □□ / □□□□ D D M M Y Y Y Y

All general meetings until and including the body corporate’s next annual general meeting

□□ / □□ / □□□□ D D M M Y Y Y Y

Special conditions or instructions to proxy: (if left blank, the appointment is unconditional)

AGENDA ITEM

FOR AGAINST ABSTAIN

6. Resolution 1: Approval of Agenda

7. Resolution 2: Approval of the minutes of the previous general meeting held on 19 April 2016

8. Resolution 3: Matters arising, if any

10. Resolution 4: Insurance replacement values. Approve the schedules of insurance replacement values referred to in Rule 23(3), with or without Amendment

11. Resolution 5: Insurance. Determine the extent of the insurance cover by the Body Corporate in terms of Rules 23(6), (7) and (8)

Page 2/…

34

Page 2

NOTIFICATION, APPOINTMENT OF PROXY AND ACCEPTANCE MANDATE

Special conditions or instructions to proxy: (if left blank, the appointment is unconditional)

AGENDA ITEM

FOR AGAINST ABSTAIN

12. Resolution 6: Budget for the year ending 31 December 2017 To approve the budget for the administrative and reserve funds for the next financial year.

13. Resolution 7: Presentation and approval of 10-year Maintenance and Replacement Plan

15. Resolution 8: Auditors To appoint an auditor to audit the annual financial statements, and to approve the remuneration of the Auditor for the past year

16. Resolution 9: Number of Trustees Determine the number of trustees to be elected to serve during the next financial year

17. Resolution 10: Election of Trustees

19. Resolution 11: To give directions or impose restrictions referred to in section 7(1) of the Act

20. Resolution 12: The financial year end of the Body Corporate

(Indicate directions to proxy by way of a cross (X) in the space provided above.)

Unless otherwise instructed, the proxy may vote as he thinks fit.

Signature(s) of members giving mandate:

□□ /□□ / □□□□ DD MM Y Y Y Y

Please note that should you be signing on behalf of a legal or juristic person, then a resolution from that particular legal of

juristic person is required authorizing the signatory to sign on behalf of the particular entity

Signature of person accepting mandate:

□□ /□□ / □□□□ D D M M Y Y Y Y

35

NOTES TO NOTIFICATION, APPOINTMENT OF PROXY AND ACCEPTANCE OF MANDATE _____________________________________________________________________________________ We would like to highlight the following provisions of the Sectional Titles Schemes Management Act, 2011 (The Act) Sectional Titles Schemes Management Regulations (The Regulations) which was promulgated subsequent to the last annual general meeting In terms of the Act – 6.

(5) A member may be represented in person or by proxy at such meeting: Provided that a person must not act as a proxy for more than two members

(6) When votes are calculated in value, each member’s vote is calculated either – (a) as the total of the quotas allocated to the sections registered in that member’s name: or (b) in accordance with a rule made in terms of section 10(2), whichever is applicable. (7) When votes are calculated in number, each member has one vote.

Please note that legal entities may be represented by a person authorized in terms of a Letter of Representation without restriction on the number of legal entities that person represents

In terms of the Regulations – 20. (2) Except for special and unanimous resolutions, a member is not entitled to vote if –

(a) a member fails or refuses to pay the body corporate any amount due by that member after a court of adjudicator has given judgement or order for payment of that amount; or

(b) that member persists in the breach of any of the conduct rules of the scheme referred to in section 10(2) (b) of the Act after a court or an adjudicator has ordered that member to refrain from breaching such rule.

(3) For the purposes of any vote, the values of votes of any sections registered in the name of the body corporate are considered abstentions. (4) Where a member is as such a trustee for a beneficiary, that member exercises voting rights to the exclusion of persons beneficially interested in the trust and such persons are not entitled to vote. (5) A member’s appointment of a proxy in terms of section 6(5) of the Act and the proxy’s acceptance of the mandate must, except in the case of an appointment in a mortgage bond, be substantially in the prescribed form and must be– (a) delivered to the body corporate 48 hours before the time of the meeting; or (b) handed to the chairperson before or at the start of the meeting. (6) A proxy need not be a member, but must not be the managing agent or an employee of the managing agent or the body corporate. (7) When two or more persons are entitled to exercise one vote jointly, that vote may be exercised only by one person, who may or may not be one of them, jointly appointed by them as their proxy. (8) The outcome of each vote, including the number of votes for and against, must be announced by the chairperson and recorded in the minutes of the meeting.

36

MARGATE SANDS BODY CORPORATE SS NO: 153/86

NOMINATION FORM

_________________________________________________________________________________ I/We, (full name):________________________________________________________________ of address ______________________________________________________________________ the owner of_____________________________________________ Being a Member of the MARGATE SANDS BODY CORPORATE hereby nominate the following person/s for election as Trustees of the Body Corporate.

NAME SIGNATURE OF ACCEPTANCE

TELEPHONE NO. HOME

TELEPHONE NO. WORK

1. S J Lamont

2. L Hansmeyer

3. J vdM Mans

4. B J Donaldson

5. H M Adam

6. P E Snyman

7. Gen G Pillay

8.

Signed at ___________________________ this ______________day of ____________________________2017 __________________________________ SIGNATURE OF MEMBER (PROPOSER) NOTES: 7. (1) A member may nominate any person for the office of trustee. (2) The nomination of a trustee must be in writing, accompanied by the written consent of the person nominated and delivered to the body corporate service address (First Group (Pty) Limited at its registered address, being 1

st Floor, Margate

Sands Business Centre, Marine Drive, Margate, 4275 or [email protected]) at least 48 hours before the annual general meeting is due to start. (3) If an insufficient number of nominations are received in terms of sub-rule (2), further nominations may be called for at the annual general meeting with the consent of the persons nominated. 37

PO BOX 1287 PINETOWN 3600, 1 CROMPTON STREET PINETOWN 3610 TEL 031 7177593 FAX 7091680

CREDIT CARD FACILITY

RESORT ______________________________ UNIT & WEEK ______________________________ CONTACT TELEPHONE NUMBER ______________________________ CARD HOLDER’S INITIALS & SURNAME ______________________________ CARD HOLDER’S ID NUMBER ______________________________ TYPE OF CARD (VISA, MASTER, etc) ______________________________

CARD NUMBER

EXPIRY DATE AMOUNT _______________________________ DATE YOU WISH YOUR CARD TO BE DEBITED _______________________________ CLIENTS LIVING OUTSIDE SOUTH AFRICA - CREDIT CARD FACILITY ON STRAIGHT ONLY

CVC Number Last 3 digits at the back of card

BUDGET (months) 6 12 24 36 48

_________________________ ____________________ CARD HOLDER SIGNATURE DATE

38

P.O Box 1287 Pinetown 3600, 1 Crompton Street Pinetown 3610

Tel: +27 31 717 7593 Fax: +27 31 709 1680

Email Address: [email protected]

RESORT: UNIT: WEEK:

MEMBERS DETAILS

First Names: Title:

Surname: Gender: M F

ID NO.: Birthday:

Street Address:

Postal Address:

City/Town: Province:

Postal Code: Email Address: (self)

Email Address: (spouse)

Email Address: (office)

Tel:(Home) Tel:(Work)

Tel:(Cell 1) Tel:(Cell 2)

Preferred Language: Marital Status:

SIGNATURE DATE

Only applicable to owners who need to update their details. 39

mailto:[email protected]

MARGATE SANDS

RCI WEEK MOD ARRIVE DEPART GAUTENG, FREE STATE KWAZULU NATAL

CODE MPUMULANGA EAST CAPE /

N'WEST/LIMPOPO N CAPE/W CAPE

P3 1 P7 07-Jan 14-Jan 11-Jan 11-Jan

Red 2 MR10 14-Jan 21-Jan

Red 3 MF 21-Jan 28-Jan

White 4 MF 28-Jan 04-Feb

White 5 MF 04-Feb 11-Feb



White 8 MF 25-Feb 04-Mar

White 9 MF 04-Mar 11-Mar



Red 12 MR13 25-Mar 01-Apr 31-Mar 31-Mar

P3 13 P1 01-Apr 08-Apr

P3 14 P2 08-Apr 15-Apr

Red 15 MR14 15-Apr 22-Apr 18-Apr 18-Apr

Red 16 MF 22-Apr 29-Apr

Red 17 MF 29-Apr 06-May

Red 18 LF 06-May 13-May

White 19 LF 13-May 20-May

White 20 LF 20-May 27-May

White 21 LF 27-May 03-Jun

White 22 LF 03-Jun 10-Jun



Red 25 MR16 24-Jun 01-Jul 30-Jun 30-Jun

P3 26 P8 01-Jul 08-Jul

P3 27 P9 08-Jul 15-Jul

P3 28 MR17 15-Jul 22-Jul

Red 29 MR12 22-Jul 29-Jul 24-Jul 24-Jul

Red 30 LF 29-Jul 05-Aug

Red 31 LF 05-Aug 12-Aug



Red 34 LF 26-Aug 02-Sep

Red 35 LF 02-Sep 09-Sep

Red 36 LF 09-Sep 16-Sep

Red 37 MF 16-Sep 23-Sep

Red 38 MF 23-Sep 30-Sep 29-Sep 29-Sep

P3 39 MR11 30-Sep 07-Oct

Red 40 MR15 07-Oct 14-Oct 09-Oct 09-Oct

White 41 MF 14-Oct 21-Oct

White 42 MF 21-Oct 28-Oct

White 43 MF 28-Oct 04-Nov

White 44 MF 04-Nov 11-Nov

White 45 LF 11-Nov 18-Nov

White 46 MF 18-Nov 25-Nov

Red 47 MF 25-Nov 02-Dec

Red 48 MR18 02-Dec 09-Dec 06-Dec 06-Dec

P3 49 P6 09-Dec 16-Dec

P3 50 P4 16-Dec 23-Dec

P4 51 P3 23-Dec 30-Dec

P4 52 P5 30-Dec 06-Jan

TIMESHARE CALENDAR 2017

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MARGATE SAND B ODY CORPORATE...MARGATE SAND B ODY CORPORATE (SS No. 153/86 ) Trustees: S J Lamont, L Hansmeyer, J vdM Mans, B J Donaldson, H M Adams, P E S n yman, Gen G Pillay 4 April

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