power institute for east and southern africa (piesa)power institute for east and southern africa...
TRANSCRIPT
Power Institute for East and Southern Africa (PIESA)PIESA is a voluntary regional electricity technology sharing association with a particular focus on the distribution industry. It aims to improve electrification in East and Southern Africa through sharing information, research, technology, skills and experiences for the benefit of customers and suppliers in the distribution industry.
1
Contents
Vision & Strategy.................................................................................................................3
Chairman’s Statement.......................................................................................................4
Members of the PIESA Board..............................................................................................6
Profile of PIESA....................................................................................................................7
Organisational Structure.....................................................................................................7
Technical Working Groups..................................................................................................8
Standardisation Working Group...........................................................................8
Low-Cost Electrification..........................................................................................8
Reduction of Non-technical and Revenue Losses.................................................9
Power Systems Analysis..........................................................................................9
Environmental Management..............................................................................10
Utility Customer Connections Development.....................................................................11
PIESA Associations............................................................................................................14
Annual Financial Statements............................................................................................15
Map of PIESA’s Area of Focus............................................................................................22
2
Vision & Strategy
Vision:
To be the catalyst for sustainable regional technological co-operation in expanding the Electricity Distribution Industry for regional growth and development.
Strategy:
To encourage participation from all regional electricity distributors and supporting industries;
To compile, optimise and maintain a centralised integrated information system for technology related to the distribution of electricity including technical equipment specifications and codes of practice that are appropriate for the regional environment;
To provide a mechanism for the continuous capturing of experiences of members in order to improve efficiency;
To encourage the use of local resources and manufacture of equipment for use in the distribution industry;
To promote applied research in areas that are relevant for the effective performance of the members;
To develop a culture of technology transfer and skills development among the members;
To develop strategic alliances and partnerships with other related organisations involved in or with the distribution industry;
To promote long-term sustainability for growth and development.
3
Chairman’s Statement
Mr Greg TosenPIESA Board ChairmanEskom, South Africa
It is most encouraging to report on growth of PIESA membership with a new member Kenya Power and Lighting Co Ltd and two new affiliate members Aberdare Cables and Circuit Breaker Industries. We were disappointed to receive a resignation from Swaziland Electricity Board and hope that this will not remain a permanent decision.
The PIESA Board met on two occasions during the financial year. The Annual General Meeting followed by a Board meeting were hosted by Uganda Electricity Distribution Company in Kampala. The second Board meeting hosted by Eskom was held in Richards Bay after the Board Members had attended the AMEU Technical Conference.
The PIESA was represented at a number of conferences during the year. Two papers were presented at the Power Africa Conference in Johannesburg being “Electrification in Africa Through Shared Technology” and “ Infrastructure to Support Reliable Power Supply, the Role of Standards and Standardisation”. A paper was presented at the EAPIC Conference in Nairobi on “PIESA Standard 1048 Power Quality”.
The PIESA was formally represented at the official launch and Constitutive Assembly of the SADC Business Forum in Johannesburg and at the SADCSTAN Annual Meeting in Mauritius. I represented PIESA at the Fourth International Electricity Research Exchange Council General Meeting in Poland and was honoured to receive the IERE Annual Award for technology development in Africa and contributions to the IERE. Agreement in principle has been reached between the IERE and PIESA to hold a combined workshop to be known as an Africa Forum in Zambia in 2007.
Two training workshops were held during the year. A course on Standardisation Training for the Standardisation Working Group and interested persons from industry was held at the Kafue Gorge Regional Training Centre. A course on Distribution Protection was held for the Power Systems Analysis Working Group in Johannesburg. A one day workshop was held in Malawi with the Standardisation Working Group, Engineers from ESCOM Malawi and representatives from the Malawi Standards Board.
As reported last year PIESA signed a Declaration of Intent with SADCSTAN to work towards a Memorandum of Understanding to establish a framework for co-operation on standardisation. What has subsequently been signed is a “Statement of Technical Co-operation between the Southern African Development Community Co-operation in Standardisation (SADCSTAN) and the Power Institute for East and Southern Africa (PIESA)
4
Concerning Co-operation in Harmonization of Standards”. Presently being developed in support of this Technical Co-operation Agreement is a draft for “Procedures for the Consideration of Standards Prepared by PIESA as Harmonised Regional Standards”.
Even though the SAPP has a focus on transmission level electricity trading and the PIESA has a focus on distribution and electrification development there has been further communication between the two organisations to ensure that there is no conflict of interests. It is recognised that occasions could arise in the areas of technical standards and environmental practices that would need input from both organisations.
The detail work in PIESA continues to be done by the five working groups which deal with Standardisation, Low Cost Electrification, Reduction of Non-technical and Revenue Losses, Power Systems Analysis and the Environment. Participation in these working groups enables Affiliate Members to make non-propriety contributions. Visible outputs external to PIESA are the production of PIESA Standards which are formally approved by the PIESA Management Board before public release.
The progress of the working groups has been mainly restricted to communication by mail due to the high cost of travel in the region. With this in mind an application for donor funding was made to Programme Manager of the Regional Trade Facilitation Programme but was not successful as the submitted outputs were not accepted within the restricted range of activities for support.
May I thank everyone who assisted in making PIESA accomplish it ’s objectives in the past year particularly the PIESA Board Members and the Members of the five Working Groups for their valuable contributions and commitment and to our Secretariat for their administrative support.
Greg Tosen PIESA Chairman
5
Members of the PIESA Board
Mr Greg Tosen
PIESA BOARD Chairman General Manager, Research,
Development & Demonstration
Eskom, South Africa
Dr Alex Chiwaya
Managing Director ESCOM Ltd
Malawi
Mr Bhukosi Siso
Distribution Services Manager Zimbabwe Electricity Supply
Authority (ZESA) Zimbabwe
Mr Simon Mhaville
Managing Director Lesotho Electricity Corporation (LEC)
Lesotho
Mr Alex Kabata Okien
Director of Studies and Standards
Societe Nationale d’Electricite (SNEL)
DR Congo
Mr Musonda Chibulu
Director of Engineering Development ZESCO Ltd
Zambia
Mr Said Balaba
General Manager Technical & Customer Services Uganda Electricity Distribution
Company Limited (UEDCL) Uganda
6
Mr Neil Croucher
Directorate Electricity Services, City of Cape Town
Association of Municipal Electricity Undertakings (AMEU) South Africa
Eng David Mwangi
Chief Manager Planning Research and Performance
Monitoring Kenya Power & Lighting Co Ltd
(KPLC) Kenya
Profile of PIESA
The Power Institute for East and Southern Africa (PIESA) is a regional power utility association established on 28 February 1998. It aims to improve electrification in the region through sharing of information, experiences, skills, technology, and research to improve the electricity distribution industry. PIESA’s main focus is on technical rationalisation to achieve economies of scale with local manufacturers in an effort to enhance electrification in the region.
PIESA’s membership comprises eight electrical power utilities, three affiliate members and an association of municipal undertakings with observer status. The revised PIESA Constitution now encourages affiliate membership of manufacturers and suppliers of electrical equipment as well as individuals or organisations from academic and research institutions.
A Management Board comprising representatives from member utilities provides policy and direction whilst work activities are conducted through Technical Working Groups. The Technical Working Groups are established as required to address improvements on common issues pertaining to power distribution and electrification. The five current working groups focus on the issues of Standardisation, Low-Cost Electrification, Reduction of Non-technical and Revenue Losses, Power Systems Planning and Environmental Management.
Secretariat and administration services in support of PIESA activities have been contracted out to SAD-ELEC Secretarial Services (Pty) Ltd in Johannesburg.
Organisational Structure
7
Technical Working Groups
8
Standardisation Working Group Mr Paul Johnson Convenor, Eskom, South Africa
The Standardisation Working Group vision is that in Africa, PIESA standards are recognized by electricity distribution utilities, their suppliers, and their funding agencies, as the preferred standards for electricity distribution. The objectives are to ensure that a credible process of consensus for developing distribution standards is in place for PIESA, that there is co-operation and
commitment of utilities and their suppliers for the use of PIESA standards and that there is co-operation with other stakeholders to avoid duplication.
During the year the working group successfully drafted and published four new standards, which were approved by the PIESA Board for publication. The first deals with cable terminations and live conductors within air insulated enclosures. The second deals with corrosion protection of mild steel fabricated equipment. The third deals with ring-main units and the fourth with metal clad switchgear. There are currently six active projects. The PIESA website includes a listing of all finalised and draft specifications. A successful standardisation training course has been developed and the first course took place at the Kafue Gorge Regional Training Centre which was well attended by PIESA members.
The consideration of PIESA published standards has been included in the work programme of the UPDEA Standardisation Study Committee. A MoU is in effect with StanSA for publishing and sale of the approved PIESA standards. In furtherance of establishing regional acceptance and usage of the standards a document has been signed with SADCSTAN titled Statement of Technical Co-operation between the SADC in Standardisation and the PIESA Concerning Co-operation in Harmonisation of Standards.
Low-Cost Electrification Mr Douglas Chitsenga Convenor, ZESA, Zimbabwe
The Low Cost Electrification Working Group have reviewed a number of systems and practices to ascertain those that could be adopted as best practices for the region. Insulated shield wire systems will require considerable research and design before further consideration. The use of single wire earth return systems, distributed generation in grid connected rural networks and the application of load limiters are already in use on various distribution networks. Advanced operating such as distribution automation and the application of dynamic thermal conductor ratings are still under review. It is now intended to do a comparison between insulated and bare overhead conductor systems.
The collection and comparison of established electrification practices throughout the region is ongoing. The focus being on voltage, system and capacity standards as well as construction and structure standards. The sharing of project experiences will identify both cost effective electrification practices and failures.
Electrification schemes can never be shown to be economically viable and do require cross subsidised funding. The working group recognises the need to develop stronger motivations for electrification schemes through load forecasting, network planning, design and costing methodologies specifically focused on the needs of the electrification end user which will require a move away from analysis practices previously used for established urban development reticulation. Operating costs and system losses have a larger impact in the analysis due to spatial networks with low utilization.
9
Reduction of Non-technical and Revenue Losses Mr Wiseman Kabwazi Convenor, Escom Ltd, Malawi
The Reduction of Non-technical and Revenue Losses Working Group mission is to enhance the financial viability of PIESA distribution industry through the reduction of non technical and revenue losses by setting acceptable and practical standards, procedures and projects. Both these losses account for a large portion of the overall losses in most utilities within the PIESA region.
The main concerns expressed by the working group members are the need to improve the quality of meter readings and the billing systems as well as revenue collection and reducing the arrears payments. In a number of countries the problems are compounded with a lot of old meters in the system and having some unmetered customers. Tampering of meters is still a problem as are illegal connections. Under meter security the working group is still investigating features to make the meter more robust and how to protect the entry cables against tampering and bypassing. A pilot automatic meter reading project has not been implemented due to the lack of funds. Utilities are intending to expand pre-payment metering systems but this will not solve tampering and bypassing.
Solutions have been introduced to reduce the impact of many of the concerns. Better qualified metering staff have been engaged and in some countries the subcontracting of this service to individual women has proved to be a success. Delivery of bills to customers premises has been introduced as have incentives for the payment of arrears. The replacement of old meters is ongoing and has given good financial returns. The introduction of lockable meter boxes has reduced tampering and the introduction of substation metering assists in identifying losses. Internal audits of current and discontinued customers have improved the quality of billing systems.
Environmental Management Ms Gertrude Moreboli Convenor, LEC, Lesotho
The Environmental Management Working Group has developed an environmental policy to provide an environmental framework for the operation of PIESA. The compilation of a Country Specific Environmental Legislation document will help PIESA to have an understanding of the environmental legal frameworks in the region which will have a bearing
on its activities. Members are being encouraged to develop Corporate Environmental Policies to guide the environmental performance of their utilities
PCB Guidelines have been prepared to guide utilities in the handling and disposal electrical equipment and materials contaminated with PCB’s. EIA Guidelines are being prepared to assist member utilities in conducting environmental impact assessments. Wayleave and Servitude Management Guidelines will provide a guide to utilities in the bush clearing and the general management of wayleaves and servitude for both new and existing distribution power lines.
An environmental training needs assessment was conducted to identify the training needs of each utility and, possibly, to help in sourcing training funds. Training needs were compiled, costed and circulated to members for comments. Training in ISO 14001 and Sustainable Development were the key areas identified.
The working group encourages collaboration in research that is of importance to the sustainable utilisation of resources and the minimisation of adverse impacts from operations of power systems. Examples were an Emissions Project to fight global warming covering Zambia, South Africa, Zimbabwe, Tanzania and Botswana and the Kafue River Basin Integrated Environmental Impact Assessment Study
10
The Environmental Working Group has been tasked to provide country specific environmental information on: climatic conditions, rainfall, altitude, solar radiation, humidity, pollution and wind velocity. This information will guide the Standardisation Working Group in the specification of designs of electrical equipment suitable for environmental conditions existing in various parts of the PIESA region.
Power Systems Analysis Mr Aaron Nyirenda Convenor, ZESCO Ltd, Zambia
The Power Systems Analysis Working Group is a conduit through which existing and new technology can be shared in the region through the identification of particular areas of concern for regional utilities in power systems. The main focus of the working group is to promote skills
development in the region through appropriate training courses in power systems analysis and reduce the utilities’ dependence on imported skills. The working group has been reviewing the various software used by the member utilities to identify whether to negotiate subsidised rates for agreed common software.
A further successful Power Systems Training Course was held during the year dealing with the protection of distributions systems which was attended by all PIESA members. This was a hands-on interactive course enabling the participants to apply the knowledge to improve the performance of their networks.
“Thumbs up for the completion of a successful course.”
Utility Customer Connections Development
11
Utility Name ESCOM Ltd Eskom Kenya Power and Lighting Company
Abbreviation ESCOM Ltd Eskom KPLC
Country Malawi South Africa Kenya
Data for the Year 2004 2004 / 2005 (15 months)
2004
Installed Generation Capacity MW 285 36,208 1,228
Total Energy Sent Out GWh 1,351 273,404 285,601 (incl nett imports)
5,035
Total Energy Sold GWh 1,056 240,951 256,959 (incl nett exports)
4,090
Number of Industrial and Commercial Customers
29,282 46,763 128,413
New Industrial and commercial Connections
1,530 1,295 6,285
Number of Urban Customers # 150,324 # 3,475,330 592,753
New Urban Connections ## 13,952 ## 98,495 36,654
Number of Rural Customers 93,442
New Rural Connections 6,267
Supporting notes# Total number of customers (Urban and Rural)## Total number new of customers (Urban and Rural)
Utility Customer Connections Development
12
Lesotho Electricity
Corporation
Societe National
d’Electricite
Uganda Electricity
Distribution Company Ltd
Zimbabwe Electricity
Supply Authority
ZESCO Ltd
LEC SNEL UEDCL ZESA ZESCO Ltd
Lesotho DR Congo Uganda Zimbabwe Zambia
2004 2004 2004 2004 2004
3.4 2,446 300 1,940 1,640
2 6,896 1,609 11,984 12,296 (incl nett imports)
9,349 9,405 (incl nett imports)
316 (incl nett imports)
6,856 1,035 10,116 8,383 8,611 (incl nett exports)
287 37,504 24,292 46,863 20,443
21 5,704 603 1,665 n/a
40,190 271,073 236,704 518,339 # 283,552
4,514 8,808 16,881 12,296 ## 56,582
89,756 26,300 4,088
- 8,436 1,876 1,514
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“A safe modern installation with satisfied customers having control over their electricity consumption through the application of prepayment metering systems.”
PIESA Associations
IERE:
The International Electric Research Exchange (IERE) is willing to promote Research an Development activities with global co-operation as a means to solve medium and long term issues facing the electrical service industries of the world and bridge the gap between developing economies and developed economies. The IERE is a voluntary international research and development organisation aimed at facilitating technology exchange with a present focus on sustainability and renewable energy. PIESA is an Executive Member of the IERE which has it’s Central Office in Japan. PIESA benefits from this association in the form of the leveraging of research projects, funding and skills for the region. The PIESA member at the IERE also serves on the Editorial Board of the IERE Newsletter.
SAPURAB:
PIESA is a Board Member of the South African Power Utilities Research Advisory Board (SAPURAB), which aims to identify research opportunities of relevance to electricity producers, transmitters, distributors and end users, promote the development of Electricity Industry research and facilitate local, regional and international research co-operation. As such the PIESA members gain technology and research experience.
SADCSTAN
The Southern African Development Community Co-operation in Standardisation (SADCSTAN) is a committee of SADC with the aim of harmonising standards in the SADC region through co-operation among national standards bodies and other stakeholders. SADCSTAN has been sensitised to the standardisation activities of PIESA. A Statement of Technical Co-operation has been signed between SADCSTAN and PIESA concerning co-operation in harmonization of standards. This document covers the purposes and application as well as the implementation and structures for co-operation in the development and harmonization of standards. A supporting document has been drafted which deals with the procedures for the consideration of standards prepared by PIESA as harmonised regional standards.
UPDEA:
Co-operation between PIESA and the Union of Producers, Conveyors and Distributors of Electrical Energy in Africa (UPDEA) which has membership of 33 countries National Electricity Utilities in Africa was formalised after the PIESA workshop held in 2001. Synergy was established between PIESA and UPDEA’s new vision to implement projects in a manner that aims to satisfy the real needs of people in the region and to enhance the social benefits through electrification. A strong link has been established between the PIESA Standardisation Technical Working Group and the UPDEA Scientific Committee to exchange information and technologies, especially in the area of standardisation.
PIESA Chairman receiving the Annual IERE Award in
Krakow, Poland
14
15
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eq
uiva
lent
s
460,
849
175,
073
Tota
l ass
ets
534,
941
297,
532
EQU
ITY
AN
D L
IABI
LITI
ES
Rese
rve
s
Ac
cum
ula
ted
sur
plu
s
302,
155
70,8
82
Cu
rre
nt
liab
ilitie
s
232,
786
226,
650
Sout
h A
fric
an
Reve
nue
Se
rvic
e
18
,394
11
,432
Tra
de
and
oth
er p
aya
ble
s 4
27,4
74
12,0
17
Co
ntin
ge
ncy
fund
5
186
918
203
201
Tota
l eq
uity
and
lia
bili
ties
53
4,94
1 29
7,53
2
17
PIES
A (
ASS
OC
IATI
ON
IN
CO
RPO
RATE
D U
ND
ER S
ECTI
ON
21
)(R
eg
istr
atio
n n
um
be
r :
20
02
/03
17
47
/08
)IN
CO
ME
STAT
EMEN
Tfo
r th
e y
ea
r e
nd
ed
28
Fe
bru
ary
20
05
20
05
2
00
4
R
R
No
tes
GRO
SS R
EVEN
UE
Me
mb
ers
hip
fe
es
rec
eiv
ed
6
867,
777
878,
807
OTH
ER I
NC
OM
E
62,0
54
96,5
11Ex
hib
itor r
eg
istra
tion
fee
s
- 31
,324
Inve
stm
ent
inc
om
e
7 25
,562
24
,671
Surp
lus
on
fore
ign
exc
hang
e
36
,492
-
Reg
istra
tion
fee
s
- 32
,516
Spo
nso
rshi
p in
co
me
- 8
000
TOTA
L IN
CO
ME
92
9,83
1 97
5,31
8
EXPE
ND
ITU
RE
69
1,59
6 82
5,02
7A
cc
oun
ting
fe
es
-
1,00
0A
dm
inis
tratio
n fe
es
pa
id
71
,868
68
,880
Ad
verti
sing
37,2
54
39,8
90A
udito
rs’ r
em
une
ratio
n
8,00
0 8,
433
Bank
cha
rge
s
3,29
7 2,
284
Fina
nce
co
sts
8 23
6 42
Gift
s
- 51
3D
efic
it o
n fo
reig
n e
xcha
nge
- 33
,023
Prin
ting
and
sta
tione
ry
25
,000
49
,043
RSC
levi
es
1,
288
2,61
9Se
cre
taria
l fe
es
50
5,66
6 61
6,36
0Tr
ave
l lo
ca
l
- 10
0Tr
ave
l o
vers
ea
s
38,9
87
2,84
0
SURP
LUS
BEFO
RE T
AX
ATIO
N
23
8,23
5 15
0,29
1TA
XAT
ION
9
6,96
2 6,
786
SURP
LUS
FOR
THE
YEA
R
231,
273
143,
505
PIES
A (
ASS
OC
IATI
ON
IN
CO
RPO
RATE
D U
ND
ER S
ECTI
ON
21
)(R
eg
istr
atio
n n
um
be
r: 2
00
2/0
31
74
7/0
8)
STAT
EMEN
T O
F C
HA
NG
ES I
N E
QU
ITY
for
the
ye
ar
en
de
d 2
8 F
eb
rua
ry 2
00
5
A
cc
um
ula
ted
su
rplu
ses
R
BALA
NC
E A
S AT
01
MA
RCH
20
03
70
,755
CO
RREC
TIO
N O
F FU
ND
AM
ENTA
L ER
ROR
(143
,378
)
REST
ATED
BA
LAN
CE
(72,
623)
REST
ATED
SU
RPLU
S FO
R TH
E YE
AR
143,
505
SURP
LUS
FOR
THE
YEA
R A
S PR
EVIO
USL
Y ST
ATED
21
4,76
0
CO
RREC
TIO
N O
F FU
ND
AM
ENTA
L ER
ROR
(71,
255)
BALA
NC
E A
S PR
EVIO
USL
Y ST
ATED
AT
01
MA
RCH
20
04
70
,882
SURP
LUS
FOR
THE
YEA
R 23
1,27
3
BALA
NC
E A
S AT
28
FEB
RUA
RY 2
00
5
302,
155
18
PIES
A (A
SSO
CIA
TIO
N IN
CO
RPO
RATE
D U
ND
ER S
ECTI
ON
21)
(Re
gis
tra
tion
num
be
r : 2
002/
0317
47/0
8)C
ASH
FLO
W S
TATE
MEN
Tfo
r the
ye
ar e
nde
d 2
8 Fe
bru
ary
200
5
2005
20
04
No
tes
R R
CA
SH F
LOW
S FR
OM
OPE
RATI
NG
AC
TIVI
TIES
Ca
sh re
ceip
ts fr
om m
emb
ers
and
sp
onso
rs
867,
776
1,04
6,57
2C
ash
pa
id to
sup
plie
rs
(6
07,3
26)
(1,3
07,4
15)
Ca
sh g
ene
rate
d b
y/(u
tilise
d in
) 14
.1
260,
450
(26
0,8
43
) o
pe
ratin
g a
ctiv
itie
sIn
vest
me
nt in
co
me
25,5
62
24,6
71Fi
nanc
e c
ost
s
(236
) (4
2)
Ne
t ca
sh fr
om
op
era
ting
ac
tiviti
es
28
5,77
6 (2
36,2
14)
Inc
rea
se/(d
ec
rea
se) i
n c
ash
and
ca
sh
28
5,77
6 (2
36
,21
4)
eq
uiva
lent
s)C
ash
and
ca
sh e
qui
vale
nts
at b
eg
inni
ng
14.3
17
5,07
3 4
11
,28
7 o
f the
ye
ar
Ca
sh a
nd c
ash
eq
uiva
lent
s a
t end
14
.3
460,
849
17
5,0
73
of t
he y
ea
r
PIES
A (A
SSO
CIA
TIO
N IN
CO
RPO
RATE
D U
ND
ER S
ECTI
ON
21)
(Re
gis
tra
tion
num
be
r: 2
002/
0317
47/0
8)N
OTE
S TO
TH
E FI
NA
NC
IAL
STAT
EMEN
TSa
t 28
Fe
bru
ary
200
5
1.
BASI
S O
F PR
EPA
RATI
ON
Th
e fi
nanc
ial s
tate
me
nts
are
pre
pa
red
in a
cc
ord
anc
e w
ith th
e S
out
h Af
rica
n St
ate
me
nts
of
Ge
nera
lly A
cc
ep
ted
Ac
co
untin
g P
rac
tice.
Sta
tem
ent
s o
f G
ene
rally
Ac
ce
pte
d A
cc
oun
ting
Pra
ctic
e in
So
uth
Afric
a a
re n
ot
inte
nde
d
to a
pp
ly t
o im
ma
teria
l ite
ms.
The
fin
anc
ial s
tate
me
nts
are
pre
pa
red
on
the
hi
sto
rica
l co
st b
asis
.
The
follo
win
g a
re th
e p
rinc
ipa
l ac
co
untin
g p
olic
ies a
do
pte
d b
y th
e c
om
pa
ny
whi
ch
are
, un
less
oth
erw
ise s
pe
cifi
ca
lly s
tate
d,
co
nsist
ent
in
all
ma
teria
l re
spe
cts
with
tho
se o
f the
pre
vio
us y
ea
r:
1.1
Re
venu
e re
co
gni
tion
Re
venu
e fr
om
me
mb
ers
hip
fee
s is
rec
og
nise
d w
hen
invo
ice
d.
In
tere
st is
rec
og
nise
d o
n a
tim
e p
rop
orti
on
ba
sis.
1.2
Bo
rro
win
g c
ost
s
Bo
rrow
ing
co
sts
are
rec
og
nise
d a
s a
n e
xpe
nse
whe
n in
cur
red
.
1.3
Ta
xatio
n
D
efe
rred
ta
xatio
n is
pro
vid
ed
at
leg
isla
ted
fut
ure
ra
tes
usin
g t
he b
ala
nce
sh
ee
t lia
bilit
y m
eth
od
. Fu
ll p
rovi
sion
is m
ad
e f
or
all
tem
po
rary
diff
ere
nce
s b
etw
ee
n th
e ta
x b
ase
of a
n a
sse
t or l
iab
ility
and
its
ba
lanc
e s
hee
t ca
rryin
g
am
oun
t.
No
de
ferre
d ta
x lia
bilit
y is
rec
og
nise
d in
tho
se c
ircum
sta
nce
s w
here
the
initi
al
rec
og
nitio
n o
f a
n a
sse
t o
r lia
bilit
y ha
s no
im
pa
ct
on
ac
co
untin
g p
rofit
or
taxa
ble
inc
om
e.
Asse
ts a
re n
ot r
aise
d in
resp
ec
t of t
he d
efe
rred
taxa
tion
on
ass
ess
ed
loss
es
unle
ss it
is p
rob
ab
le th
at f
utur
e ta
xab
le p
rofit
s w
ill b
e a
vaila
ble
ag
ain
st w
hic
h th
e d
efe
rred
tax
ass
et c
an
be
rea
lise
d in
the
fore
see
ab
le fu
ture
.
1.4
Fi
nanc
ial i
nstr
ume
nts
Fi
nanc
ial i
nstru
me
nts
ca
rrie
d o
n th
e b
ala
nce
she
et i
nclu
de
ca
sh a
nd b
ank
b
ala
nce
s,
trad
e
rec
eiv
ab
les,
tra
de
c
red
itors
. Th
e
pa
rtic
ula
r re
co
gni
tion
me
tho
ds
ad
op
ted
are
co
nsid
ere
d a
pp
rop
riate
.
It is
the
po
licy
of
the
co
mp
any
no
t to
ta
ke o
ut f
orw
ard
co
ver
in r
esp
ec
t o
f fo
reig
n c
urre
ncy
trans
ac
tions
to
whi
ch
the
co
mp
any
is
pa
rty t
o. T
he
co
mp
any
’s e
xpo
sure
fore
ign
exc
hang
e fl
uctu
atio
ns is
disc
lose
d in
no
te 7
to
the
ann
ual f
ina
ncia
l sta
tem
ent
s.
(ASS
OC
IATI
ON
INC
ORP
ORA
TED
UN
DER
SEC
TIO
N 2
1)(R
eg
istr
atio
n nu
mb
er :
200
2/03
1747
/08)
NO
TES
TO T
HE
FIN
AN
CIA
L ST
ATEM
ENTS
a
t 28
Fe
bru
ary
200
5
20
05
2004
R
R
5. C
ON
TIN
GEN
CY
FUN
D
Op
eni
ng b
ala
nce
20
3,20
1 -
Fee
s p
revi
ous
ly re
co
gni
sed
as
inc
om
e
for t
he fi
nanc
ial y
ea
rs 2
002/
2003
-
138,
731
fo
r the
fina
ncia
l ye
ar 2
004
- 64
,470
Fee
s ra
ised
dur
ing
the
cur
rent
ye
ar
54,1
02
-Fo
reg
in e
xcha
nge
ad
just
me
nt
(70,
385)
-
Clo
sing
ba
lanc
e
186,
918
203,
201
The
co
ntin
ge
ncy
fund
is re
pre
sent
s m
ovi
es
held
by
the
co
mp
any
on
be
half
of
its m
em
be
rs. T
he fu
nd h
as
be
en
est
ab
lishe
d b
y th
e m
em
be
rs to
pa
y c
erta
in
exp
ens
es
on
the
ir b
eha
lf w
hen
atte
ndin
g th
e c
om
pa
ny’s
wo
rkin
g g
roup
me
etin
gs.
The
am
oun
ts h
eld
by
the
co
mp
any
on
be
half
of t
he m
em
be
rs c
an
be
sp
lit in
to
the
follo
win
g c
urre
ncie
s;
US D
olla
r (20
05 -
$26
,500
, (20
04 -
$19
,500
))
154,
682
177,
465
Rand
s 32
,236
25
,736
186,
918
203,
201
6. G
ROSS
REV
ENUE
Gro
ss re
venu
e c
om
pris
es
turn
ove
r, w
hic
h e
xclu
de
s va
lue
ad
de
d ta
x a
nd
rep
rese
nts
the
invo
ice
d v
alu
e o
f se
rvic
es
sup
plie
d.
Ma
jor c
lass
es
of r
eve
nue
co
mp
rise:
Sub
scrip
tions
fro
m m
em
be
rs
828,
777
862,
907
Co
rpo
ara
te m
em
be
rshi
p fe
es
39,0
00
15,9
00
86
7,77
7 87
8,80
7
7.IN
VEST
MEN
T IN
CO
ME
Inte
rest
inc
om
e-
Inte
rest
rec
eiv
ed
25
,562
24
,671
8. F
INA
NC
E C
OST
SBa
nk o
verd
raft
236
42
19
PIES
A (A
SSO
CIA
TIO
N IN
CO
RPO
RATE
D U
ND
ER S
ECTI
ON
21)
(Re
gis
tra
tion
num
be
r : 2
002/
0317
47/0
8)N
OTE
S TO
TH
E FI
NA
NC
IAL
STAT
EMEN
TSa
t 28
Fe
bru
ary
200
5
Gro
ss
Taxa
tion
Ne
t
138,
731
- 13
8,73
1
- 4,
647
4,64
7
143,
378
64,4
70
- 64
,470
-
6,78
6 6,
785
71,2
55
20
05
2004
R
R
3. T
RAD
E A
ND
OTH
ER R
ECEI
VABL
ES
De
bto
rs fo
r sub
scrip
tions
53,8
09
110,
032
Pre
pa
id e
xpe
nse
s
- 4,
400
Valu
e a
dd
ed
taxa
tion
20
,283
8,
027
74
,092
12
2,45
9
4. T
RAD
E A
ND
OTH
ER P
AYA
BLES
Acc
rua
ls
9,23
4 12
,018
Ove
rpa
yme
nts
de
bto
rs
18
,240
-
27
,474
12
,018
2.
FUN
DA
MEN
TAL
ERRO
R
Hist
oric
ally
the
com
pa
ny in
corre
ctly
reco
gni
sed
con
ting
ency
fees
rece
ived
fro
m th
e m
emb
ers
as
inco
me.
Sin
ce
the
com
pa
ny is
liab
le to
refu
nd th
e m
onie
s he
ld, i
t fel
t tha
t am
ount
s re
ceiv
ed s
houl
d b
e re
flect
ed a
s lia
bilit
ies
of th
e co
mp
any
Sin
ce th
e co
mp
any
is re
gist
ered
und
er
Sect
ion
21 o
f the
Com
pa
nies
Act
of
1973
, it i
s ex
emp
t fro
m ta
xatio
n in
re
spec
t of m
onie
s re
ceiv
ed fr
om it
s m
emb
ers.
How
ever
the
com
pa
ny is
lia
ble
for t
axa
tion
on th
e in
vest
men
t in
com
e re
ceiv
ed.
C
ontin
gen
cy fe
es in
corre
ctly
reco
gni
sed
as
inco
me.
Ta
xatio
n d
ue o
n th
e in
vest
men
t in
com
e re
ceiv
ed
20
PIES
A (A
SSO
CIA
TIO
N IN
CO
RPO
RATE
D U
ND
ER S
ECTI
ON
21)
(Re
gis
tra
tion
num
be
r: 2
002/
0317
47/0
8)N
OTE
S TO
TH
E FI
NA
NC
IAL
STAT
EMEN
TSa
t 28
Fe
bru
ary
200
5
20
05
2004
R
R
12. F
INA
NC
IAL
INST
RUM
ENTS
Cre
dit
risk
The
com
pa
ny o
nly
dep
osits
ca
sh s
urp
luse
s w
ith
ma
jor b
ank
s of
hig
h q
uality
cre
dit
sta
ndin
g.
13. C
OM
PARA
TIVE
FIG
URES
Cer
tain
com
pa
rativ
e fig
ures
ha
ve b
een
recl
ass
ified.
14. N
OTE
S TO
TH
E C
ASH
FLO
W S
TATE
MEN
T
14.1
Ca
sh g
ener
ate
d b
y/(u
tilis
ed in
) op
era
ting
act
iviti
es
Surp
lus
for t
he y
ea
r 23
8,23
5 15
0,29
1Ad
just
me
nts
for:
Inve
stm
ent
inc
om
e
(25,
562)
(2
4,67
1)Fi
nanc
e c
ost
s 23
6 42
21
2,90
9 12
5,66
2
Mov
emen
ts in
wor
king
ca
pita
lD
ecre
ase
/(inc
rea
se) i
n tra
de
and
oth
er re
ceiv
ab
les
48,3
66
(102
,991
)D
ec
rea
se in
tra
de
and
oth
er p
aya
ble
s (8
25)
(283
,514
)
260,
450
(260
, 843
)
14.2
Re
conc
ilia
tion
of
taxa
tion
pa
id d
urin
g y
ea
r
Cha
rge
in in
co
me
sta
tem
ent
(6
,962
) (6
,786
)M
ove
me
nt in
taxa
tion
ba
lanc
e
6,96
2
6,78
6
14.3
Ca
sh a
nd c
ash
eq
uiva
lent
s
Ca
sh a
nd c
ash
eq
uiva
lent
s co
nsist
of c
ash
on
hand
a
nd b
ala
nces
with
ba
nks.
Ca
sh a
nd c
ash
eq
uiva
lent
s
incl
uded
in th
e ca
sh fl
ow s
tate
men
t com
pris
e th
e
follo
win
g b
ala
nce
shee
t am
ount
s:
Bank
and
ca
sh b
ala
nce
s 46
0,84
9 17
5,07
3
PIES
A (A
SSO
CIA
TIO
N IN
CO
RPO
RATE
D U
ND
ER S
ECTI
ON
21)
(Re
gis
tra
tion
num
be
r: 2
002/
0317
47/0
8)N
OTE
S TO
TH
E FI
NA
NC
IAL
STAT
EMEN
TSa
t 28
Fe
bru
ary
200
5
2005
20
04
R
R
9.TA
XATI
ON
Sout
h Af
rica
n no
rma
l ta
x-
Cur
rent
tax
6,96
2 6,
786
Reco
ncili
atio
n o
f ra
te o
f ta
xatio
n %
%
Sout
h Af
rica
n no
rma
l ta
x ra
te
30.0
0 30
.00
Adju
ste
d fo
r:-
Exe
mp
t inc
om
e
(27.
08)
(25.
48)
Ne
t re
duc
tion
(2
7.08
) (2
5.48
)Ef
fec
tive
rate
2.
92
4.52
Alth
oug
h th
e c
om
pa
ny is
exe
mp
t fro
m c
urre
nt ta
xatio
n in
term
s o
f Se
ctio
n 10
o
f the
Inc
om
e T
axa
tion
Act o
f 196
8, o
n th
e m
em
be
rshi
p fe
es
rec
eiv
ed
fro
m it
s m
em
be
rs, i
t is
how
eve
r lia
ble
for t
axa
tion
on
the
inve
stm
ent
inc
om
e re
ce
ive
d.
10. S
URPL
US F
OR
THE
YEA
R
Surp
lus
is st
ate
d a
fter:
Inco
me
Pro
fit o
n fo
reig
n e
xcha
nge
36
,492
-
Exp
end
iture
Aud
itors
’ re
mun
era
tion
8,00
0 8,
433
- Au
dit
fee
8,
000
8,00
0-
Prio
r ye
ar u
nde
r pro
visio
n -
433
Loss
on
fore
ign
exc
hang
e
- 33
,023
11. F
OR
EIG
N C
UR
REN
CY
EXPO
SUR
E
Tota
l fo
reig
n cu
rre
ncy
Clo
sing
ra
te
Cur
rent
Fa
ir V
alu
e
RD
eb
tors
for s
ubsc
riptio
ns -
US
Do
llar
2005
- $
9,21
8 R5
,837
= $
1 53
,809
2004
- $
16,5
79.0
0 R6
.636
= $
1 11
0,03
2
Co
ntin
ge
ncy
fund
- U
S D
olla
r20
05 -
26,
500
US D
olla
r R5
,837
= $
1 15
4,68
2
21
Map of PIESA’s Area of Focus
22
