Sentech 2019-2020 Integrated Report

INTEGRATED REPORT 2020
SENTECH INTEGRATED REPORT 2019/20

TABLE OF CONTENTS
ABOUT THIS REPORT..................................................................................................................... 1
SENTECH AT A GLANCE................................................................................................................. 3
About Us............................................................................................................................................................................ 4
Legal Structure................................................................................................................................................................ 5
Performance highlights................................................................................................................................................ 6
Trends Analysis................................................................................................................................................................ 7
Value Offering.................................................................................................................................................................. 8
OUR STRATEGIC FOCUS................................................................................................................ 10
OUR OPERATING ENVIRONMENT................................................................................................. 14
LEADERSHIP OVERVIEW............................................................................................................... 19
Chairperson’s statement.............................................................................................................................................. 20
Chief Executive Officer’s Overview........................................................................................................................... 22
Board of Directors........................................................................................................................................................... 25
Executive Team................................................................................................................................................................ 28
HOW WE CREATE VALUE............................................................................................................... 30

Chief Financial Officer’s Review................................................................................................................................. 31
Sustainable Value-creation at a glance................................................................................................................... 34
Engaging our stakeholders......................................................................................................................................... 35
Socio-economic transformation............................................................................................................................... 37
DELIVERING ON OUR STRATEGY AND MANDATE....................................................................... 40

Performance Against Predetermined Objectives............................................................................................... 41
Chief Operations Officer’s Review............................................................................................................................ 44
Network Performance................................................................................................................................................... 46
Environmental Preservation....................................................................................................................................... 47
Technology Development and Innovation........................................................................................................... 48
Products Performance.................................................................................................................................................. 50
Human Capital................................................................................................................................................................. 51

MANAGING RISKS AND OPPORTUNITIES................................................................................... 57
Managing our top strategic risks............................................................................................................................. 59
Fraud Prevention and Risk.......................................................................................................................................... 61
GOVERNING EFFECTIVELY........................................................................................................... 62
Key Focus Areas............................................................................................................................................................. 69
Board Committees........................................................................................................................................................ 70
Combined Assurance................................................................................................................................................... 78
Board of Directors Report........................................................................................................................................... 79
Statement of Company Secretary............................................................................................................................ 82
GROUP ANNUAL FINANCIAL STATEMENTS................................................................................ 83

Board’s Responsibility and Approval...................................................................................................................... 84
Report of Independent Auditors.............................................................................................................................. 85
Financial Statements.................................................................................................................................................... 90
Notes to the Financial Statements.......................................................................................................................... 94
LIST OF ABRREVIATIONS............................................................................................................. 146

ABOUT THIS REPORT
The aim of this report is to provide stakeholders with a concise, material, transparent and understandable assessment
of SENTECH’s overall business performance, including execution and governance. SENTECH is committed to applying
the corporate governance principles contained in King IV. Details of the Company’s application of these principles
appear under the governance section of this report. SENTECH is still on a journey to fully comply and adhere to the
international integrated reporting framework.
Basis for preparing the Report
This report has been prepared in terms of:
• SENTECH Act, Act No. 63 of 1996 as amended

• Companies Act, No. 71 of 2008 (Companies Act) as amended
• King Report on Corporate Governance (King IV)
• National Treasury Framework for Managing Programme Performance Information
• Public Finance Management Act, Act No. 1 of 1999
• Treasury Regulations 2005 (Issued by National Treasury)
• Broad Based Black Economic Empowerment Code.
Scope and boundaries
This report covers SENTECH’s business performance for the financial year (FY) ended 31 March 2020. This integrated
report covers social and environmental aspects of the Company’s supply chain and addresses legitimate issues
relevant to stakeholders outside the Company.
Determination of Report content
The information presented in this report was selected by the Board of Directors (the Board) and Executive Committee
(EXCO) such that, in its view, it offers the most value or is “material” to those who will read the report. Quantitative and
qualitative aspects, as well as anticipated timeframes, were considered when determining materiality. SENTECH’s
Board and management are confident that the information presented is what is most material to its stakeholders
and will inform their assessment of the Company’s ability to create value in the short, medium and long-term.
This report focuses on the organisation’s corporate responsibility of accountability and SENTECH’s commitment to
applying King IV principles and providing an understanding of the significance of governance to the providers of
financial capital meaning that the governance of the Company is reviewed at length. Material matters (representing
events, risks, opportunities, issues and amounts) are discussed.
Combined Assurance
SENTECH’s combined assurance model recognises three lines of defence, namely, review by management,
supplemented by internal and external assurance in order to optimise governance oversight, risk management and
control. The Audit and Risk Committee (ARC) and the Board rely on combined assurance in forming their view of the
adequacy of SENTECH’s management and internal controls. A combined assurance approach was adopted in the
preparation of this report.
Forward looking statement
The report may contain forward-looking statements. Words such as “believe”, “anticipate”, “intend”, “seek”, “will”, “plan”,
“could”, “may”, “endeavour” and similar expressions are intended to identify such forward-looking statements but
are not the exclusive means of identifying such statements. While these forward-looking statements represent our
judgements and future expectations, several risks, uncertainties and other important factors could cause actual
developments and results to differ materially from our expectations.
These include factors that could adversely affect SENTECH’s businesses and financial performance. SENTECH is
not under any obligation to (and expressly disclaim any such obligation to) update or alter its forward - looking
statements, whether as a result of new information, future events or otherwise.
1
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__________________
__________________
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5 5
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SENTECH
SENTECH
INTEGRATED
INTEGRATED
REPORT
REPORT
2019/20
2019/20 2 2
2
SENTECH AT A GLANCE
3 SENTECH INTEGRATED REPORT 2019/20

About Us
We are a South African state-owned company and leading provider SOC of electronic
communications network services to the country’s broadcasting and communications
industry. Our ownership of the largest infrastructure in the country for terrestrial
signal distribution for both TV and radio enables us to offer wholesale services on
an equitable, non-discriminatory and non-exclusive basis (i.e. as a common carrier).
We provide broadcast transmission services to all public broadcaster’s (SABC) radio
and television stations, commercial radio and TV stations and over 150 Community
Radio Stations countrywide daily. Our 180 sites enable us to provide connectivity and
infrastructure services to the retail, Telco’s and Public sectors.
SENTECH derives its mandate from legislation, particularly the SENTECH Act and
the Electronic Communications’ Act. In 1992, SENTECH was corporatized as a wholly
owned subsidiary of the South African Broadcasting Corporation (SABC). In 1996,
SENTECH Act, No. 63 of 1996 was amended, converting SENTECH into a separate
public entity responsible for providing broadcasting signal distribution services as a
common carrier to licensed television and radio broadcasters. As holder of Individual
Electronic Communications Network Services (I-ECNS) and an Individual Electronic
Communications Services (I-ECS) we can provide international voice-based
telecommunications and multimedia services.
4
Communications Services (I-ECS) we can provide international voice-based telecommunications and
multimedia services.
Legal Structure
Legal Structure
Legal Structure
SENTECH SOC Ltd has four subsidiaries set out blow. These entities are all 100% directly and indirectly (in the case of InfoSat (Pty) Ltd) owned by SENTECH SOC Ltd. There
SENTECH SOC Ltd has four subsidiaries set out below. These entities are all 100% directly and indirectly (in the case of InfoSat (Pty) Ltd) owned by
are currently no material account
SENTECH SOCbalances
Ltd hasnorfour
classessubsidiaries these
of transactions atset entities.
out in figure 2a. These entities are all 100% directly and
SENTECH SOC Ltd. There are currently no material account balances nor classes of transactions at these entities.
indirectly (in the case of InfoSat (Pty) Ltd) owned by SENTECH SOC Ltd. There are currently no material
account balances nor classes of transactions at these entities.

SENTECH INTEGRATED
6 REPORT 2019/20
Performance Summary
Performance highlights
Customer
Net loss satisfaction
R72 million index increased
to 73%
EBIT margin
grew by 17% Launched
----------------------- SENTECH
R 261 million Connect
Sales Revenue
grew by 100%
6% Achievement of B-BBEE Level 1
---------------------- predetermined
R 1.335 million objectives
Transformation
Eighth (8th) spend (ESD,SD, CSI
Consecutive and Preferential
year of clean audit Procurement)
----------------------
R 167 million

Trends Analysis
Trends
Trend Analysis
analysis indicates the company performance over a five year period from FY2015/16 – FY2019/20.
Trend analysis indicates the company performance over a five year period from FY2015/16 – FY2019/20.
Trend Analysis (R ‘mil)

1 800
1 516
1 481
1 600
1 399
1 350
1 233
1 400
1 179
1 112
1 200
957
1 000
916
907
800
600
442
400
261
196
155
142
200
96
92
75
34
(123)
(200)
Cash generated
Revenue EBIT Cash Balances
from operations
FY2016 FY2017 FY2018 FY2019 FY2020
Trend Analysis (R ‘mil)

4 800
4 287
4 300
3 800
3 300
2 758
2 800
2 334
2 264
2 296
1 995
1 954
1 991
1 842
2 300
1 920
1 719
1 767
1 663
1 800
1 306
1 146
1 300
696
800
424
413
343
291
228
300
(200)
Total Assets Total Liabilities Net Asset Value
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
7
Amount (R ‘mil)
Amount (R ‘mil)
1 481 1 481
1 600
1 399 1 399
1 335 1 335
1 350 1 350
1 269 1 269
1 233 1 233
1 400
600
1 215 1 215
1 179 1 179
1 143 1 143
1 079 1 079
1 200
400
1 000
200
1 800
000
600
800
400
600
131 131
135 135
146 146
101 101
90
200
400
6,3% 6,3%
7,9% 7,9%
6,0% 6,0%
4,4% 4,4%
5,2% 5,2%
200- 90
(200)- Continuing Business Dual Illumination Total Revenue Continuing % increase
(200) Continuing Business Dual Illumination Total Revenue Continuing % increase
FY2016 FY2017 FY2018 FY2019 FY2020

FY2016trend analysis
The above graphs illustrate FY2017 overFY2018 FY2019 for varied
a five year period FY2020measures from
the Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Posi-
The above graphs illustrate trend analysis
tion over
and Cash a five
Flow year period for varied measures from
Statement.
the Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial
Position and Cash Flow Statement.
Value Offering
Value Offering
Value Offering
Our strategic value offering revolves around three key aspects of our business, namely Content and
Our strategic Managed
Multimedia, value offering revolves around
Infrastructure threeand
Services key Connectivity.
aspects of our business, namely Content and
Our strategic value offering revolves around three key aspects of our business, namely Content and
Multimedia, Managed Infrastructure Services and Connectivity.
Multimedia, Managed Infrastructure Services and Connectivity.
Managed infrastructure
Content & Multimedia Connectivity
services
Managed infrastructure
Content & Multimedia Connectivity
services
Facilities Leasing
Wireless Broadband
Television (Collocation)
(Fixed wireless, VSAT)
Facilities Leasing
Wireless Broadband
Radio
Television Third Party Facility
(Collocation)
(Fixede-Services
wireless, VSAT)
Management
On Demand
Radio media Third Party Facility
Digital Solutions
e-Services
Managed Network Services
Management
On Demand media
Digital Solutions
Managed Network Services
The key
The key focus
focus area
area inin the
theFY2019/20
FY2019/20 waswas launching
launching the
the SENTECH
SENTECH CONNECT
CONNECT brand
brand asas aa service
service offering
offering for
for
Government facilities specifically in Education, Health and Local Government especially within
Government facilities specifically in Education, Health and Local Government especially within rural com- rural communities
The
wherekey
munities focus
broadband
wherearea in the FY2019/20
connectivity
broadband was
access has
connectivity launching
notaccess has the
not SENTECH
been addressed CONNECT
by commercial
been addressed ICT brand asThe
byproviders.
commercial a service
launch
ICT offering for
of the brand
providers. The
Government
launch of thefacilities
was in line with the approved
brand was specifically in Education,
Broadband
in line with Health
business case
the approved and Local
in support
Broadband Government
of the especially
support within
phase one implementation
business case in rural
of SA com-
Connect
of the phase one
project
munities driven by
where DCDT.
broadband connectivity access has not been addressed by commercial ICT providers. The
implementation of SA Connect project driven by DCDT.
launch of the brand was in line with the approved Broadband business case in support of the phase one
In keeping the focus
implementation on servicing
of SA the community
driven where access is neither available nor affordable, the content and
In keeping the focus onConnect
servicingproject
the community by DCDT.
where access is neither available nor affordable, the con-
multimedia portfolio was enhanced with OTT services through content streaming over satellite and internet protocol.
tent
Theseand multimedia
capabilities portfolio
enable SENTECH was enhanced
to advance with OTTofservices
its objective through
providing content
universal streaming
access to everyone over satellite
especially the
In keeping
and the
internet focus onThese
protocol. servicing the community
capabilities enable where access
SENTECH to is neither
advance itsavailable
objective nor
of affordable,
providing the con-
universal
underserviced areas, while reducing the cost to access broad and media services by South African citizens.
tent and multimedia portfolio was enhanced with OTT services through content streaming over satellite
and internet protocol. These capabilities
SENTECHenable SENTECH
INTEGRATED to advance
REPORT its objective of providing universal
2019/20 8
SENTECH INTEGRATED REPORT 2019/20 88

sharing and co-locations opportunities with other telecommunications providers.
party support and maintenance (passive and active support and maintenance on behalf of 3 rd party)
respectively.
The managed services The SENTECH
portfolio capabilities combined
is being ramped up towith
expandits partners’ strength
infrastructure is best
sharing andsuited
hosting toservices
enhance the
asvalue
Managed
well as ofInfrastructure
this portfolio
introduction ofand
3rdenable
Services provide
party managed toservices
over 200 to
accessmanagement
service lower
SENTECH
(real barriers
and of
strategically
estate entry for other
positioned
infrastructure sites operators.
for
sharing site
onsharing
behalf
and co-locations opportunities with other telecommunications providers.
of 3rd party) and 3rd party support and maintenance (passive and active support and maintenance The managed services portfolio is being
on
ramped up to expand infrastructure sharing and hosting services as well as
behalf of 3rd party) respectively. The SENTECH capabilities combined with its partners’ strength is bestintroduction of 3rd party service
management (real estate and infrastructure sharing onenable
behalf of 3rd party)services
and 3rd party support and maintenance
Network
suited Coverage
to enhance the value of this portfolio and managed to lower barriers of entry for
(passive and active support and maintenance on behalf of 3rd party) respectively. The SENTECH capabilities combined
other operators.
with its partners’
SENTECH’s strength
head is best
office, suited Technology
Sender to enhance thePark value(STP)
of thisisportfolio
based and enable managed
in Honeydew, services to lower
Johannesburg and has
barriers of entry for other operators.
nationalCoverage
Network coverage with 17 operational centres, offices and vast terrestrial broadcasting sites across all
nine provinces
Network Coverage as highlighted below;
SENTECH’s head office, Sender Technology Park (STP) is based in Honeydew, Johannesburg and has na-
tional
SENTECH’s Satellite
▪ coverage coverage
with
head office, Sender – 100% of
17 operational
Technology South
centres,
Park Africa
offices
(STP) and
andinSADC
is based vast countries
terrestrial
Honeydew, broadcasting
Johannesburg sites
and has acrosscoverage
national all nine
with 17
provinces DTT footprint
▪ operational coverage
centres,
as highlighted equates
offices and
below; to 84% national
vast terrestrial population
broadcasting coverage
sites across all nine provinces as highlighted
below: ▪ 151 FM radio broadcasters: 20 Public, 21 Commercial, 118 Community Radio stations
▪ 17
• Satellite internet– connectivity
coverage 100% of South sites for and
Africa MPUSADC DoF countries
• Satellite
• DTT▪footprint coverage – 100% of South Africa and SADC countries
50 SA coverage
Connect sites equates
andto 84% national
7 Internet 4 All population
sites.
• DTT footprint coverage equates to 84% national population coverage
coverage
• 151 FM radio broadcasters: 20 Public, 21 Commercial, 118 Community Radio stations
• 151 FM radio broadcasters: 20 Public, 21 Commercial, 118 Community Radio stations
• 17 • internet connectivity sites for MPU DoF
17 internet connectivity sites for MPU DoF
• 50 • SA Connect sites and
50 SA Connect sites 7andInternet 4 All4 sites.
7 Internet All sites.
Network Geographical spread and National presence
9 SENTECH INTEGRATED10
REPORT 2019/20
9
OUR STRATEGIC FOCUS

OUR STRATEGIC
OUR STRATEGICFOCUS
FOCUS
Vision Mission Value Proposition

A global leader in digital Creating smart communities Keeping our customers
content delivery by connecting customers connected all the time
and people through the anywhere
delivery of content and
innovative digital solutions
STRATEGIC GOALS
1) Sustainable Business 2) Enable digitally 3) Achieve excellent customer

Growth connected people and and stakeholder satisfication
communities
VALUES - I CARE

INNOVATIVE | CUSTOMER CENTRIC | ACCOUNTABLE | RESPONSIBLE | ETHICAL
Our strategy is to efficiently deliver content while growing connectivity and digital
businesses through dynamic capabilities, strategic partnerships and acquisitions.
11
11
• Leverage our existing businesses
• Expand to Pan-African markets
GROWTH • Acquire new business and assets
• Form strategic partnerships for opportunities
• Deploy Wireless broadband
• Design new innovation solutions for current and potential

INNOVATION customers
• Implement research programmes
Strategic Pillars
Value Offering
The corporate strategy is aimed at en- • Operate & maintain reliable network
suring sustainable business growth. • Respond promptly to customer queries
The
Thecorporate strategy
strategy considers at ensuring
is aimedthe need for CUSTOMER FOCUS • Charge competitive tariffs
• Exceed customer expectations
sustainable
revenue business
growth growth.
in theThecontext
strategy of
considers the need for revenue growth
technology disruptions, the future of
in the context of technology disruptions,
broadcasting,
the changing consumer
future of broadcasting, changingbe-
haviour and
consumer socio-economic
behaviour transfor-
and socio-economic • Live the SENTECH way
CULTURE CHANGE • Get things done with speed and excellence
transformation imperatives.
mation iperatives.
SENTECH’s
SENTECH’scorporate
corporate strategy hinges
strategy on
hinges
the Seven Strategic Pillars as shown
on the Seven Strategic Pillars as shown
below, namely, growth, innovation, • Support ICT SMMEs
customer namely,
below, focus, growth,
culture change, innovation,
efficiency, TRANSFORMATION • Implement B-BBEE initiatives
• Partner to support socio-economic initiatives and CSI
customer focus, culture
transformation and reputation.change, effi-

ciency, transformation and reputation.
• Drive down our cost of doing business

EFFICIENCY • Automate our processes
• Reduce use of paper and energy
• Influence public policy

• Continuous stakeholder engagement
REPUTATION • Position our brand
• Apply best Corporate Government practices
12
Following the Board’s Strategy session in November 2019, the seven strategic pillars were modified to enable focus on digital
Following the Board’s Strategy session in November 2019, the seven strategic pillars were modified to enable focus on digital transformation balanced with environmental
transformation balanced with environmental preservation.
preservation.
Table
Table1:1:Strategic Pillars
StrategicPillars
Strategic Pillars Strategic Initiatives Outcomes

Customer Centricity • Invest in necessary customer and market intelligence Loyal and satisfied customers
• Build long term relationships with customers which is a basis of shared value
• Using professional tools such as CRM and SLAs to manage information and relationships
Optimization and Growth • Optimize core business through focused cost efficiency and value-added products and solutions Sustainable, relevant, future-focused business
• Invest in digital migration and promote receiver uptake
• Mergers and acquisitions that accelerate growth and capabilities
• Developing collaborative strategic partnerships to leverage potential opportunities
Talented People • Fit for purpose organizational design to support the execution of strategy Right, talented people in the right place at the
• Reskill and equip our people with mission critical skills right time
• Shape a high-performance culture that embraces accountability, collaboration, agility, innovation
and customer-centricity
Innovation and Digital Readiness • Invest in Research and Innovation • Focused pipeline of innovative services and
• Develop a pipeline of future products, services and solutions solutions
• Active trial of 5G and IoT technologies to develop expertise • Digital capabilities in place to ensure future
• Establishing a SENTECH Innovation Hub that provides opportunities and infrastructure for success
entrepreneurial SMMEs to incubate disruptive ideas
Transformation • CSI as a good corporate citizen by supporting Covid-19 relief initiatives Socio-economic contribution to society
• B-BBEE programme for transformation and business development

• Employment Equity Programme to ensure equitable demographic representation across all
occupational levels and categories, promote diversity and inclusion to ensure equal opportunity
Environmental Preservation • Developing and implementing energy conservation initiatives such as green energy Preserve the environment for future use
• Reduce pollution through waste management, creation of awareness and taking care of the
environment where SENTECH operates
Reputation • Effective stakeholder management and engagement Increased brand equity and reputation
• Relevant, accurate and quality Performance Information
• Targeted external and internal Communications to ensure stakeholders are well informed about
SENTECH’s business aspirations and the way it works
• Effective brand management to position SENTECH in the minds of its current and potential
customers
13
13
OUR OPERATING ENVIRONMENT

OUR OPERATING ENVIRONMENT
COVID-19’s Impact on the South African Economy 1
• The National Treasury expects the South African economy to contract by 7.2 % in 2020. The South African
Reserve Bank estimates a 7,3% contraction.
• It is expected that the economy will be in recession for some time, exacerbated by the credit rating agency’s
review of the economy to junk status.
• Unemployment is expected to rise to at least 50% from the current 30.1.1%, putting pressure on the already
strained social system.
• Labour economists estimate that between 3 – 7 million jobs may be lost as firms shut down especially
SMMEs that are by nature generally risky.
• The country’s budget deficit is estimated to reach 15.7% of the GDP in 2021% against the initial 6.8% before
Covid-19. This implies that the Government will have to borrow in order to meet the economic stimulus
package of R500 billion a reality. A gross national debt of close to R4 trillion or 81.8% is projected in the
2020/21 fiscal year according to National Treasury.
COVID-19’s Impact on SENTECH SOC Ltd
• A lack of economic growth will impact the company’s revenue as some of its major customers will be affected
by declining sales and the need to cut costs.
• The fall of the rand against the US dollar has increased the company’s costs of paying its dollar based foreign
suppliers.
• Rising unemployment rate and increased budget deficit will erode the Government tax base, which may
affect Government funding for dual illumination.
• The above will affect implementation of national strategic projects like digital migration, Communication
Satellite and SA Connect.
Our Strategic Response
• Invoked and implemented our Business Continuity Management Plan to ensure business continuity.
• Reviewing our corporate strategy and plan to ensure liquidity and sustainability.
• Engagement with our customers to address their liquidity challenges.
• Engagement with our major suppliers especially overseas based ones in order to address a continuous
supply of good and services.
• Support government to provide social relief, donation to Solidarity Fund and assist with connectivity for
learners.
Policy and Regulatory Environment
• The South African policy and regulatory frameworks need focus as they may pose a challenge to the future
operations of our business.
• The National Integrated ICT Policy White Paper seeks to create an inclusive telecommunications industry by
addressing barriers to ownership, diffusion of infrastructure, services, devices and digital literacy.
• The ICT Policy strives to introduce the proliferation of mobile virtual network operators (MVNOs) by reducing
the infrastructural barriers of entry through the creation of a wholesale open-access network operator
(WOAN).
• The principle of the WOAN, in turn, faces competition hurdles, as already indicated by the Competition
Commission.
• The Regulator, Independent Communications Authority of South Africa (ICASA), is faced with a challenge of
deciding on the format of licensing the WOAN while maneuvering around the threat of facing litigation on
a competition basis, resulting in further delays in the licensing of high demand spectrum.
• The delay in the migration of digital terrestrial television services to below 700 MHz will likely impact on the
availability of high demand spectrum.
1 National Treasury, South African Reserve Bank, PWC Report
15
• SENTECH expects that ICASA‘s memorandum of information on spectrum licensing will clarify some of the
issues; including the licensing method, the invitation to apply, assignment of high demand spectrum as well
as the composition of the WOAN.
• SENTECH Board will formulate a Shareholder guided position on its participation in the WOAN and/or
whether it would establish an MVNO entity to leverage the opportunities presented by the impending
formation of the WOAN.
High Demand Spectrum
• The Regulator has indicated that the licensing process, through an auction, for the high demand spectrum
will include the following radio frequencies: 700, 800, 2600 and 3500 MHz’s.
• What is still unclear is the way the Regulator will address the availability of radio frequency spectrum for
5G-based technology standards when considering the deliberations and outcomes of the World Radio
Communication Conference (WRC-19).
• The Regulator will be facing challenging and complex developments when considering the licensing of
high demand spectrum.
• The Competition Commission has raised several competition issues regarding the licensing of high demand
spectrum, namely, the timing, type of radio frequency spectrum, and subscriber market configuration.
• The National Treasury department has indicated the need for the Regulator to maximize the auction output,
by reducing the amount of radiofrequency spectrum considered for the WOAN.
• It remains to be seen how the Regulator will deal with the auction process versus the proposed assignment
of the high demand spectrum to both mobile operators and the WOAN considering the policy directive.
• The licensing processes and timelines for high-demand spectrum will impact on the ASO and digital - to -
digital migration schedule, including the management of distribution and installation of STBs. The process
will also impact FM services as a consequent of the migration of studio-to-transmitter links (STLs).

• SENTECH is motivating for a public sector spectrum allocation for the purpose of delivering universal access
to ICT.
• SENTECH is planning to apply for High Demand Spectrum.
Broadcasting Framework
• The licensing process for the high demand spectrum will exert immense pressure on terrestrial broadcasting
services, audio and visual.
• The timeframes for the migration of the digital terrestrial television services will impact the auction process
concerning time and value of spectrum.
• The issues of time and cost of the high demand spectrum, 700 and 800 MHz, to be auctioned will be central
to the licensing process and procedures.
• The 700 and 800 MHz radio frequency bands are for extending coverage requirements especially in the rural
areas.
• There is a need to replace the linking equipment, studio to transmitter and for Frequency Modulation (FM)
services.
• The current linking equipment operates in the 800 MHz band and must move operations to the 2100 MHz
band as the new designated band.
• Migration of services to the Digital Terrestrial Television (DTT) network services will have to be expedited to
allow for a smooth vacation of the high demand spectrum bands.
• It is anticipated that the government will finalize its DTT Set-Top boxes delivery method to facilitate this
process.
• It is expected that the completion of this process will, barring any litigation on the licensing of the high
demand spectrum, deliver on the much-vaunted digital dividend.
16
• SENTECH to engage ICASA on the process to migrate broadcasters from 700 and 800MHZ spectrum and
relevant regulations affecting the migration process.
• Leading the Broadcasting Digital Migration programme to help in expediting the overall project.
• Assist Government in Set-Top Box Installation for the subsidised market.
The changing media and entertainment landscape
• The entertainment and media industry continue to experience swift changes as consumers now dictate
what they want to consume; when and where they choose to consume their preferred content.
• As such, players throughout the value chain are required to review their strategies as more organisations are
going directly to the end consumer.
• This change in consumer preferences is brought about by increasing digital media content via over-the-top
(OTT) services.
• As technological advancements introduce more disruptions, broadcasters are faced with an array of both
challenges and opportunities.
• An example is the way 5G will allow consumers to watch television content easily on mobile devices without
the need for a Wi-Fi connection thereby improving all round consumer experiences.
• In response to this market disruption, broadcasters have also responded to these technological shifts in
several ways through:
– Significant consolidation between content players.

– Aggressive cost reduction exercises, from simplification to disposing of noncore assets.
– Greater product differentiation focusing on specific consumer segments, provision of localized content
and more high-profile brand identity.
– Partnerships to increase reach and minimize defections. For example, Pay-Tv platforms are increasingly
striking deals with over-the-top (OTT) platforms to stream their own content direct to the consumer.
• Innovation is a key enabler for broadcasters to compete more effectively in their markets and become
resilient to change.
• What has not changed is the demand for great and compelling content. Supplying this demand presents
opportunities for those who can produce content and monetise at scale.
Broadcasting sector
Television and Radio 2
• According to the PWC-Ovum report, Total TV market was forecasted to grow to R40,5bn (3,9%) by 2023 from
R33.4bn in 2018.
• OTT Video, new kid on the block, to grow from R1,2bn (2018) to R2,3bn or by 14,1% in 2023.
• Pay-Tv subscription to grow from R23,4bn (2018) to a forecasted R28,8bn or 4,3% by 2023.
• Radio advertising revenue is forecasted to grow from R4,3bn (2018) to R4,8bn a 2,1% CAGR by 2023.
Our strategic response
• Investing, partnering and building Over-The-Top and other digital platforms and solutions.
• Optimizing cost to achieve operational efficiencies that will translate to consumer competitive pricing.
• Driving digital radio as a new product and engaging Regulator for policy direction.
2 Source: PWC -Ovum Report, 2019
17
Internet Access (Broadband) 3
• Total Internet access revenue, which is made up of fixed and mobile broadband is forecasted to increase at
8,2% CAGR and reach R77,7bn by 2023 from R52,3bn in 2018.
• Fixed broadband, where SENTECH is positioning itself, is estimated to increase from R6,6bn (2018) to R8bn
by 2023, a 4,9% CAGR.
• Data consumption in SA is forecasted to increase by CAGR of 30,9 and approach 18.7 (GB billion) in 2023,
from 1.6billion GB in 2014 and 4.9billion GB in 2018.
• Video is the main driver of data consumption, 4 095million GB (in 2018) and forecasted to grow to 15 742
million GB by 2023.
• Ovum’s research further reveals that the SA market is growing steadily, boosted by high demand for
broadband connectivity and video content.
• Affordability, however, remains a challenge in a weakened economy as broadband prices are still not
affordable for many South Africans.
• Moreover, in the past five years, there has been an expansion of 3G and 4G in-country and implemented
Fiber to the x (FTTx) in urban areas.
• The legacy of poor fixed network coverage represents a significantly large and untapped market for
broadband service providers.
• Fixed-wireless access is already providing much of the region’s fixed broadband capacity and leveraging the
popularity of mobile broadband LTE-based services.
Data Consumption 4
• Data consumption in SA is forecasted to increase by CAGR of 30,9 and approach 18.7 (GB billion) in 2023,
from 1.6 billion GB in 2014 and 4.9billion GB in 2018.
• Video is the main driver of data consumption, 4 095million GB (in 2018) and forecasted to grow to 15
742million GB by 2023.The growth is driven by increasing access to the internet.
• Fixed broadband households are forecasted to grow from 1.7 million reached in 2018, to 3.2 million by 2023
or CAGR of 13.5%.
• Smartphones are seen to be the most important area of growth with an overall market share of 35,5%. The
number of smartphones is estimated to reach 93,5 million by 2023 from 53.1 million in 2018.
Our strategic response
• Expand the SENTECH Connect product portfolios to include Online solutions.

• Establish Strategic Partnerships to scale and growth customer base.
• Improve our broadband network coverage (Share infrastructure).
• Increase network usage (vertical markets opportunities).
• Tailoring services for specific market segments.
• Resource mobilization i.e. spectrum assets, emerging technologies.
• Participate in Government Communication Satellite Project.

18
LEADERSHIP OVERVIEW

ChairpersonStatement
Chairperson’s 's S tatement
I am pleased to present the SENTECH FY2019/2020 integrated report that was
Icompleted
am pleased intothe midst of
present theanSENTECH
unprecedented
FY2019/2020 crisis. integrated
In the late 2019,
reportthe thatworld
was
woke up to a disruption that was declared a pandemic by
completed in the midst of an unprecedented crisis. In the late 2019, the world the World Health
Organisation
woke up to a(WHO): Covid-19
disruption or Coronavirus.
that was Covid-19, by
declared a pandemic a respiratory
the World disease
Health
that is said to (WHO):
Organisation have emerged
Covid-19 in or
Wuhan a city in Covid-19,
Coronavirus. China wasaunprecedented
respiratory disease and
caught the world by surprise. Nobody saw it coming and
that is said to have emerged in Wuhan a city in China was unprecedented and nobody planned for
it. The Covid-19
caught the worldpandemic
by surprise.hasNobody
disrupted sawpersonal,
it coming social
andand economic
nobody planned life for
for
everyone
it. globally.
The Covid-19 The pandemic
pandemic is predicated
has disrupted personal,to hit hardand
social on the economies
economic of
life for
the world resulting in low economic growth, job losses, increased
everyone globally. The pandemic is predicated to hit hard on the economies of government
debt,
the muted
world business
resulting as well
in low as consumer
economic growth,confidence. Covid-19 government
job losses, increased is disrupting
human
debt, and business
muted businessbehaviour
as well asand this willconfidence.
consumer require a response
Covid-19 that
is is business
disrupting
unusual.and business behaviour and this will require a response that is business
human
unusual.
SENTECH has indeed managed to navigate through the difficult macroeconom-
ic environment
SENTECH exacerbated
has indeed managed by the Covid-19through
to navigate pandemic. the Idifficult
am pleased to present our
macroeconomic sterling performance
environment exacerbated of achiev-
by the
ing 100% of our predetermined objectives. The company remained resilient and maintained
Covid-19 pandemic. I am pleased to present our sterling performance of achieving 100% of our predetermined its leadership in provid-
objectives. The Company remained resilient and maintained its leadership in providing broadcasting infrastructure
leadership
services and
that my Board
keep colleagues
millions demonstrated
of households commitment
on air through TV and and dedication
radio. to ensuring
The executive that theand
leadership SENTECH
my Boardship
sailed through the rough seas.
colleagues demonstrated commitment and dedication to ensuring that the SENTECH ship sailed through the rough
seas.
Effective governance and SOC rationalisation
Effective governance and SOC rationalisation
There were also challenging times for most State-Owned Companies (SOCs) that all had to take stock of what and
There werewere
how they alsodoing
challenging times for most
and implementing State-Owned
step-changes toCompanies
their ways of(SOCs) thatand
working all had to take
service stockThe
delivery. of what and
contexts
how they were
that SOCs founddoing and implementing
themselves in were also step-changes to their
challenging with many ways of working
dealing and service
with instances delivery. The
of challenges contexts
in corporate
that SOCs found
governance themselves
and financial in were alsoOur
sustainability. challenging with
Department ofmany dealing withand
Communications instances
Digital of challenges in
Technologies corporate
is in the pro-
governance and financial sustainability.
cess of SOC rationalization that is aimed atOur Department
merging SENTECH of and
Communications
Broadband Infracoand Digital Technologies
to establish a new state is in the
digital
process of SOCcompany
infrastructure rationalization that
to drive is aimed at
broadband merging SENTECH
connectivity and Broadband
and achieve efficiencies.Infraco
The taskto has
establish
not beena new state
easy to
digital
finalizeinfrastructure company
as it must undergo to driveprocesses
legislative broadbandthatconnectivity and achieve
have to go through efficiencies.
Parliament beforeThe taskentity
a new has not been
is estab-
easy toAs
lished. finalize as it must
a company, undergo
SENTECH legislative
has been processes
supportive of thethat haveand
process to go through
trusts Parliament
that the new entitybefore
will bea sustainable
new entity
is
inestablished. As a company,
achieving Shareholder SENTECH
priorities. has continue
We will been supportive
ensuringofeffective
the process
and and
cleantrusts that theasnew
governance we entity
mark our will 8th
be
sustainable
consecutivein achieving
year of cleanShareholder
audits. priorities. We will continue ensuring effective and clean governance as we
mark our 8th consecutive year of clean audits.
Strategic outlook
Strategic outlook
Our strategy has been that of diversification in light of the technology disruption especially in the broadcasting sec-
Our strategy
tor where ourhas been that
business of diversification
is a major in light of
player. This entailed the technology
optimizing disruption
our current legacyespecially in the pursuing
business whilst broadcasting
new
sector where our business is a major player. This entailed optimizing our current legacy business
markets in broadband connectivity and in the Pan-African arena as well as developing new digital products. Central whilst pursuing
new
to ourmarkets
strategyinexecution
broadband connectivity
is strategic and in theacquisitions
partnerships, Pan-Africanand
arena
ownascapabilities.
well as developing
We wantnew digital
to see some products.
traction
Central
in theseto our strategy
initiatives execution
in the is strategic
coming financial partnerships, acquisitions and own capabilities. We want to see some
years.
traction in these initiatives in the coming financial years.
The Fourth Industrial Revolution and digital disruption has brought more urgency for organisations to digitally
The Fourththeir
transform Industrial Revolution
business processes, and digital disruption
products has brought
and operations. more
One of our urgency
strategic for organisations
pillars is Innovation to anddigitally
Digital
transform
Readiness their business
to prepare the processes,
company for products
the newand operations.
digital One
world. The of our strategic
Company pillarsto
has continued is invest
Innovation
in newand Digital
technolo-
Readiness to prepare
gies and building of newthedigital
company
skills for survival
the newin digital world. The
this disruptive Company has continued to invest in new
environment.
technologies and building of new digital skills for survival in this disruptive environment.
Appreciation
Appreciation
Gratitude goes also to my board colleagues for good working relations and collaboration in providing strategic
Gratitude
leadershipgoes also to my
and effective board colleagues
governance. for good
To our former working
board relations
colleagues whoand collaboration
resigned, in providing
Mr Magatho strategic
Mello, Ms Jackie
leadership and effective governance. To our former board colleagues
Huntley, Mr Lumko Mtimde, we appreciate your contribution to the organisation. who resigned, Mr Magatho Mello, Ms Jackie
Huntley, Mr Lumko Mtimde, we appreciate your contribution to the organisation. I welcome our new board members
who joinedour
I welcome thenew
SENTECH Board, Mswho
board members Malande
joinedTonjeni, Mr Mxolisi
the SENTECH Board, Tsika and KingTonjeni,
Ms Malande Madzikane II Thandisizwe
Mr Mxolisi Tsika andDiko,
King
looking forward to a fruitful interaction as we govern effectively.
Madzikane II Thandisizwe Diko, looking forward to a fruitful interaction as we govern effectively.

20
Gratitude goes also to my board colleagues for good working relations and collaboration in providing
strategic leadership and effective governance. To our former board colleagues who resigned, Mr Magatho
Mello, Ms Jackie Huntley, Mr Lumko Mthimde, we appreciate your contribution to the organisation.
I welcome our new board members who joined the SENTECH Board , Ms Malande Tonjeni, Mr Mxolisi
Tsika and King Madzikane II Thandisizwe Diko, looking forward to a fruitful interaction as we govern
effectively.
Gratitude
Gratitude
Gratitude goes to our
goes
goes toMinister
to our of Communications
ourMinister
Minister of and Digital Technologies
ofCommunications
Communications andDigital
and for Technologies
Digital support and guidance.
Technologies I
forsupport
for support andguidance.
and guidance.IIwould
wouldlike
like
would like to extend my gratitude to the Executive leadership and staff for achieving excellent results.
toextend
to extendmy mygratitude
gratitudeto tothe
theExecutive
Executiveleadership
leadershipand andstaff
stafffor
forachieving
achievingexcellent
excellentresults.
results.
_____________________
_______________________
DrSandile
Dr SandileMalinga
Malinga
_________________
Dr Sandile
ChairpersonMalinga
Chairpersonof ofthe
theBoard
Board
Chairperson of the Board
17August
17
17 August
August 2020
2020
2020
20
21
ChiefExecutive
Chief Executive Officer
Officer’s 's Overview
Overview
I write this report in the midst of the Covid-19 global health crisis that
has led
I write thisto an economic
report lockdown
in the midst we have global
of the Covid-19 never seen
healthincrisis
our lifetime.
that has
The crisis faced by our country and the world over is an unprecedent-
led to an economic lockdown we have never seen in our lifetime. The crisis
ed health
faced disasterand
by our country withthe
unimaginable impacts
world over is an on the people
unprecedented healthand the
disaster
economies
with unimaginableof the world.on
impacts Our
thegovernment’s
people and the response hasofbeen
economies more
the world.
Ourthan appropriate
government’s in order
response hastobeen
savemore
lives.than
Theappropriate
crisis was felt during
in order the
to save
lives. The crisis was felt during the last month of
last month of our annual performance period, March 2020.our annual performance
period, March 2020. We have made good progress in maintaining financial and
operational
We have stability in theprogress
made good midst of challenging and uncertain
in maintaining financial macroeconomic
and operation-
and market environments. As a leading provider of electronic communications
al stability in the midst of challenging and uncertain macroeconomic
network services to the country’s broadcasting and communications industry,
and market environments. As a leading provider of electronic commu-
we have ensured a reliable and available network that delivers content to South
nications network services to the country’s broadcasting and commu-
African audiences. We succeeded in providing broadcast transmission services
to nications
all public industry, we have
broadcaster’s (SABC)ensured a reliable
radio and andstations,
television available network
commercial
Mlamli Booi
radio and (CEO)
TV stations that delivers
and over 150 Community Radiocontent
Stationstocountry-wide
South African Rudzani
daily. Our telcoRasikinya
audiences. (CFO)us
We succeeded
customers rated inInterim
providing
better broadcast
for hosting themtransmission services
at our 180 sites to all
to enable public
their broadcaster’s (SABC)Appointed
connectivity. radio and television
as Actingstations,
Chief Finan
Appointed
commercialasradio
Chief Executive
and TV stations and over 150 Community Radio Stations country-widestdaily. Our telco
Officer onImpact
customers
Economic the 15usOctober
rated better for2015 Officer on 1 May 2020
hosting them at our 180 sites to enable their connectivity.
It is againstImpact
Economic these challenging times of Covid-19 that we present the Integrated Annual Report. As we closed the
Qualifications
financial year end of March 2020, the South African economy was in technical recession after a 1,8% contraction in
Quarter 4. It was at achallenging
time when the country was waiting forwe
thepresent
credit rating that CA (SA)
ended in sub investment grade
Qualifications
It is against these times of Covid-19 that the Integrated Annual Report. As we
or “junk status.” At the same time the world was already faced with an unprecedented Covid-19 pandemic. The
closed
PGimpact
Dip. ofthe financial year end of March 2020, the South African economy was in technical recession after
(Project
Covid-19Management)
on the South African economy is predicted to have devastating effects unless some drastic
a 1,8% contraction in Quarter 4. It was at a time when the country was waiting for the credit rating that
MSc (Electrical
fiscal and
ended ininsub Engineering),
monetary policy interventions are put in place. It is expected that the GDP will decline significantly
investment grade orAlso,
“junk status. ” At the
resulting soaring unemployment. this recession willsame
lead totime the worldofwas
the widening the already faced government
budget deficit, with an un-
precedented
debt increases Covid-19 pandemic.
and businesses The impact
may collapse. As a of Covid-19
company, weonarethe
notSouth
immuneAfrican economy
from these is predictedand
macroeconomic to
have devastating effects unless some drastic fiscal and monetary policy interventions
microeconomic challenges and Covid- 19 impact as they will disrupt our business environment. are put in place. It
is expected that the GDP will decline significantly resulting in soaring unemployment. Also, this recession
will lead to the
Encouraging widening of the budget deficit, government debt increases and businesses may collapse.
performance
As a company, we are not immune from these macroeconomic and microeconomic challenges and Co-
Given
vid-19the challenging
impact as theybusiness environment,
will disrupt we have
our business demonstrated great performance in achieving 100% of our
environment.
predetermined objectives as approved by the Shareholder. Our revenue has increased by 6% to R1.335 million and
EBIT margin ofperformance
Encouraging 17% or R261 million. However, we incurred a net loss of R72 million. The Net loss incurred was mainly
due to the fluctuations in the foreign exchange rate, where a major part of the Lease liability is foreign currency
denominated. This was the first recognition of the liability due to adoption of a new accounting standard, namely
Given the challenging business environment, we have demonstrated great performance in achieving
IFRS 16 Leases.
100% of our predetermined objectives as approved by the Shareholder. Our revenue has increased by 6%
to R1.335
Our million
Customer and EBIT
satisfaction margin
index of 17% or
has improved R261
from million.
68.25% However,
to 73% we incurred
due to customer a net lossand
engagement of by
R72 million.
becoming
The Net
more loss incurred was
customer-centric. Our mainly dueefforts,
innovation to the though
fluctuations in the
steadily foreign have
improving, exchange rate,
seen us where a major
developing part
new digital
of the Lease liability is foreign currency denominated. This was the first recognition of the liability
products to provide connectivity solutions to the public sector. We have managed to increase our connected sites due to
adoption
for of a new
SA Connect to 100accounting
and we are standard,
planning tonamely
do moreIFRS 16 coming
in the Leases. years as we grow and expand our broadband
offerings. Our average weighted network availability of 99.88% continues to be stable and met SLA targets. As a
caring company,satisfaction
Our Customer we have invested
indexinhas
theimproved
well-beingfrom
and development
68.25% to 73% of our
duestaff
toby providingengagement
customer a conducive working
and by
environment and training opportunities. We managed to exceed our digital training targets
becoming more customer-centric. Our innovation efforts, though steadily improving, have seen us devel- by implementing
98.38%
oping newof our training
digital interventions
products as we connectivity
to provide prepare for the digital world.
solutions to theTransformation
public sector.ofWe industry
have and peopleto
managed is
key to our developmental mandate. Empowerment of women colleagues in management is our priority as we aim
increase our connected sites for SA Connect to 100 and we are planning to do more in the coming years
Tebogo
for a 50% Leshope
as we grow and expand (COO)
representation in our Executive and Senior Management Teams. To date women
our broadband offerings. Our average weighted Siphamandla
representMthethwa
40% and 47% in
network availability (CFO)
of 99.88%
Executive and Senior management respectively. We advance B-BBEE and Corporate Social Investment by supporting
Appointed
black ownedtoas
continues beChief
smallstable Operations
and met
and medium SLA targets.
enterprises As a caring
and supplier company,
through funding,we haveAppointed
invested
preferential as well-being
in the
procurement Chief Financial
and Offic
and community
development
Officer on theof1our
st staff by providing a conducive working environment and training
March 2018 opportunities. We
initiatives. on the 1st December 2016
managed to exceed our digital training targets by implementing 98.38% of our training interventions as
*Resigned
we prepare for the digital world. Transformation of industry and people is key 30 April 2020
to our developmental man-
Qualifications
date. Empowerment of women colleagues in management is our priority as we aim for a 50% representa-
N Dip (Electrical Engineering),
BTech (Electrical Engineering),
SENTECH INTEGRATED REPORT 2019/20 Qualifications 22
22
MBA Chartered Accountant (SA)
We also made good strides in the last financial year towards business diversification. Our Broadband strategy
execution process resulted in the successful launch of SENTECH Connect. This is a business that focuses on e-Health
and e-Learning. Our Strategy is to focus on offering a platform agnostic service to our customers whose business is
delivering content to their customers.
Strategy execution
Over the past five years we developed a strategy that was underpinned by growth in new markets and new products,
innovation, culture change, transformation and reputation. Our growth has been pedestrian but above average
inflation rate of 4%. We implemented inorganic strategies since mid-2018 that included strategic partnerships and
acquisitions and have not yielded the desired results yet as the process especially of M&A is complex and takes
time. We however, continue to pursue inorganic growth as we recognize it as a substantial and quicker means to
maximize company value.
We have achieved B-BBEE level 1 for the financial year 2019/20, from B-BBEE level 2 in the previous financial year. Our
transformation journey is not just for compliance but to contribute to community, enterprise and people development.
In driving a high-performance culture, we have been implementing a SENTECH WAY change programme that drives
innovative, results driven, accountable, customer focused and efficient behaviour. Our reputation and brand as a SOC
has not suffered any damage as we continue to ensure effective corporate governance and stakeholder relations.
Looking ahead
We anticipate an even tougher trading environment as exacerbated by the macroeconomic conditions and the
Covid-19 pandemic. A lack of economic growth will impact the company’s revenue, moving forward, as some of
its major customers will be affected by declining sales and the need to cut costs. The fall of the rand against the
US dollar has increased the company cost of paying its dollar based foreign suppliers. The forecasted decline in
Government tax base may affect funding towards dual illumination. This will affect the implementation of national
strategic projects like digital migration, Communication Satellite and SA Connect.
Covid-19, unlike technology disruption, is drastic, unprecedented and life-threatening and requires immediate
response. It has disrupted SENTECH’s revenue forecasts, business and operating models, corporate plan and strategy
and overall business sustainability. It will therefore require immediate response.
Our emphasis will be on cost optimisation and revenue growth to ensure business sustainability in the short, medium
and long-term. Our strategy is thus to optimize and transform legacy business and grow and expand connectivity
and digital businesses through strategic partnerships, acquisitions and own capabilities. We will leverage our strong
balance sheet to grow and expand our connectivity business and development of digital solutions. We will also
prioritize digital transformation in order to achieve optimization and more focused business segments.
Going Concern Outlook
Whilst taking into account the impact of Covid-19, management and directors are of the view that the company will
not require government financial assistance to remain solvent.
23
company will not require government financial assistance to remain solvent.
Appreciation
Appreciation
Appreciation
I would like to extend my appreciation to the Board for developing a strategy direction and providing the
I would like oversight
execution to extend my appreciation to the Board andfor developing a strategy direction and providing
I would like to extendand support. To my
my appreciation toexecutive
the Boardteam staff
for developing atalarge, well
strategy done for and
direction navigating
providing the execution
the execution
through roughoversight
seas and and
being support.
able to To
achieve my executive
excellent team
performance. Myand staff at
appreciation
oversight and support. To my executive team and staff at large, well done for navigating large,
also well
goes alldone
our for
to through navigating
rough seas and
through rough
customers, seas
suppliersand
and being
other able to
stakeholdersachieve
for excellent
keeping our performance.
business going My
through appreciation
these times.
being able to achieve excellent performance. My appreciation also goes to all our customers, suppliers and also goes to allother
our
customers, suppliers and other stakeholders for keeping
stakeholders for keeping our business going through these times. our business going through these times.
__________________
__________________
Mr __________________
MrMlamli
Mlamli Booi
Booi
Mr Mlamli
Chief BooiOfficer
Executive
Chief Executive
Chief ExecutiveOfficer
Officer
17 August 2020
17 August 2020
17 August 2020
23
24
Board of Directors
The Board consists of Non-Executive Directors and Executive Directors who are appointed by the Minister. Current Non-Executive Directors consist of seven members,
whilst the Executive Directors are made up of three members, the CEO, CFO and COO. The CFO resigned at the end of April 2020. The Board strives to have a gender
balanced board and currently has 67% female representation of all non-executive directors and 44% of the total Board composition.
25
Non-Executive Directors
Non-Executive Directors appointed
appointed by the Minister serve
by the Minister serve a three-year
a three-year term on the Board.
term on the Board.They also can be
They also can be reappointed for a
reappointed for a second term.
second term.
Dr Sandile Malinga Ms Tebogo Malaka King Madzikane II Thandisizwe Maureen Manyama

(Board Chairperson) CA (SA)
Diko
Appointed 1st April 2018
Appointed 1st April 2018 as Non-Executive Appointed 1st November 2018
Appointed 4th February 2020
Director and as Board Chairperson on the Qualifications
4th February 2020 BA (SocSc), MBA Qualifications
Qualifications
BA Social Science CA (SA), MBA
Qualifications Chairperson: Human Resources,
Magister Artium, Development
PhD (Physics), MBA Remuneration and Nomination Committee Chairperson: Audit and Risk Committee
Communication
Chairperson: Social and Ethics Committee
Ms Precious Sibiya Ms Malande Tonjeni Mr Mxolisi Tsika Mr Magatho Mello Ms Jacqueline Huntley Mr Lumko Mtimde
(CA) SA CA (SA)
Appointed 4th February 2020 Appointed 1st March 2015–28 February Appointed 15th November 2013-14 Appointed 1st March 2015–28 February
Appointed 1st November 2018 Appointed 4th February 2020 2018 and reappointment from 1 April 2018 November 2016 and reappointed 12 2018 and reappointed from 1 April
Qualifications Position December 2016 2018
Qualifications Qualifications LLB, Master of Philosophy Chairperson & Non-Executive Director *Resigned 30 November 2019
CA (SA) B Com, Honours (Accounting) Qualifications
CA (SA) Qualifications B Proc, LLB Qualifications
Chairperson: Technology, Sales, Regulatory BSc (Electrical Engineering), NHD * Resigned on the 31 May 2019 BSc (Biochemistry and Physiology) PG
Coordination Committee Chairperson: Investment Committee (Electrical Engineering), MSc (Electrical Dip (Telecommunications and
Engineering) informationtion Policy)
* Resigned on the 26 June 2019

Executive Directors
ExecutiveDirectors
According to
According to SENTECH
SENTECH Act Act executive
executive directors
directorsshould
should
consist of
consist of Chief
Chief Executive
Executive Officer,
Officer,Chief
ChiefFinancial
FinancialOfficer
Officer
and Chief Operations Officer. The executive directors
and Chief Operations Officer. The executive directorsare are
appointed on
appointed on aa five-year
five-year fixed
fixed term.
term. ItItisisthe
theMinister’s
Minister’s
prerogative to extend executive directors tenure.
Mr Mlamli Booi Rudzani Rasikhinya

(CEO) (CFO) Acting
Appointed Chief Executive Officer on the Appointed as Acting Chief Financial

15th October 2015 Officer on 1st May 2020
Qualifications Qualifications
MSc (Electrical Engineering), PG Dip. CA (SA)
(Project Management)
Mr Tebogo Leshope Mr Siphamandla Mthethwa

(COO) CFO
Appointed Chief Operations Officer on Appointed 1st December 2016 as Chief

the 1st March 2018 Financial Officer
N Dip (Electrical Engineering), BTech CA (SA)
(Electrical Engineering), MBA *Resigned 30 April 2020

Executive Team Executive Directors
According to SENTECH Act executiveAccording to SENTECH

directors Act executive
should consist of directors should
Chief Executive Officer, Chief Financial of Chief
consistOfficer andExecutive Officer, Chief Financial Officer
Chief Operations
Officer. The executive directors and Chief Operations
are appointed on a five-year The executive directors are
Officer. fixed
appointed on a five-year fixed
term. It is the Minister’s prerogative to extend executive directors term. It is the Minister’s
tenure. prerogative to extend executive directors tenure.
Mr Mlamli Booi Rudzani Rasikhinya

(CEO) (CFO) Acting
Appointed Chief Executive Officer on the Appointed as Acting Chief Financial

15th October 2015 Officer on 1st May 2020
Mr Tebogo Leshope Mr Siphamandla Mthethwa

(COO) CFO

the 1st March 2018 Financial Officer
(Electrical Engineering), MBA *Resigned 30 April 2020
28 27 SENTECH INTEGRATED REPORT 2019/20

Mmapula Kgari Kereng Motlhabi Rashika Ramlal Zunaid Adams Adv. Selaelo Matsane
Chief Marketing and Sales Officer Chief Human Resources Officer (CHRO) Chief Technology and Information Executive: Legal & Regulatory Company Secretary
(CMSO) Officer (CTIO)
Appointed 1st August 2016 Appointed 7th August 1995 Appointed 1st November 2018
Appointed 12th June 2017 Appointed 5th July 2018
Acting Executive Broadband Qualifications Qualifications Qualifications
BCom (Hons), Ind. Psych Qualifications BProc LLB, B.Iuris
Qualifications MBA, BSc IT, International Dip Business
MBL, Bcom (Economics) Admin
Marlon Finnis Itumeleng Segaloe Kopano Thage Obrey Nekhavhambe CA(SA)

Executive: Operations Chief Strategy Officer (CSO) Acting : Chief Marketing and Sales Officer Executive: Finance
Appointed 1st July 2018 Appointed 1st May 2016 Appointed 18th June 2019 Appointed 3rd February
*Resigned end of November 2019
Qualifications Qualifications Qualifications
MBL, BTech (Electrical Eng) BA (Psych), BAdmin (Hons), MBA BSc Computer Science, MBA Qualifications
CA (SA)

HOW WE CREATE VALUE

Chief Financial Officer 's Review
Chief Financial Officer’s Review
During the 2019/20 financial year, we delivered on the key business targ
that were
During the set out in
2019/20 the Corporate
financial Plan (Annual
year, we delivered Performance
on the key Plan) des
business targets
that were set out in the Corporate Plan (Annual Performance
challenging economic conditions within the broadcasting sector and Plan) despite
challenging economic conditions within the broadcasting sector and the
entire ICT industry.
entire ICT industry.
SENTECH experienced
SENTECH experienced these
these headwinds
headwinds first-hand
first-hand with subdued
with subdued revenue reve
growth (being slightly above Consumer Price Index for the with
growth (being slightly above Consumer Price Index for the year) coupled year) coup
challenges experienced in implementing cost containment
with challenges experienced in implementing cost containment initiatives. We are initiati
responding to these developments by working on new innovative solutions
We are responding to these developments by working on new innova
collaboratively with customers and key strategic partners.
solutions collaboratively with customers and key strategic partners.
SENTECH’s core operations generated positive cash flows whilst maintaining
profitability.core
SENTECH’s The balance sheetgenerated
operations has improved with cash
positive cashresources reported
flows whilst maintain
exceeding R1, 5 billion. Accounts receivables have improved in the year with settlement of a long outstanding debt
by a customer.
settlementinofthe
Performance a long
currentoutstanding debt
year was further by a customer.
impacted by the implementation of IFRS 16 Lease Accounting. IFRS 16 is
effective for the annual reporting period beginning on or after 1 January 2019 with earlier application permitted. IFRS
16 introduces a single
Performance in thelessee
current accounting
year was model and requires
further impacted a lessee
by theto recognise assets andof
implementation liabilities
IFRS 16forLease
all leases
Accounti
with a term of more than 12 months. A lessee is required to recognise a right-of-use asset representing its right to
IFRS 16 is effective for the annual reporting period beginning on or after 1 January 2019 with ea
use the underlying leased asset and a lease liability representing its obligation to make lease payments. In previous
application
years SENTECHpermitted. IFRS 16 ofintroduces
applied the prescripts IAS17 Leases.a Undersinglethislessee
standardaccounting model
the leases were and asrequires
classified operatinga lessee
recognise
leases assets and
with recognition of liabilities for all
lease expenses leases
in the profitwith a term
and loss with of
no more than
assets or 12liabilities
Lease months. A lesseeAfter
recognised. is required
recognise a right-of-use asset representing its right to use the underlying leased asset and a lease
the assessment of all leases SENTECH is contracted to, the majority of the leases met the recognition criteria as set liab
out under IFRS16. On initial recognition at 1 April 2019, a Right of Use asset and corresponding
representing its obligation to make lease payments. In previous years SENTECH applied the prescript Lease Liability of R1,
35billion was recognised. As at 31 March 2020, the Lease liability grew to R1,58billion due to the significant
IAS17 Leases. Under this standard the leases were classified as operating leases with recognition of le
fluctuations in the foreign exchange rate between the spot rate at initial recognition and the reporting date as
expenses
required in the
in terms profit
of IAS 21- TheandEffects
loss of
with no assets
Changes or Exchange
in Foreign Lease liabilities
Rates. Therecognised.
foreign exchangeAfter the assessment
difference (loss) o
leases
is SENTECH
recorded is contracted
under profit and loss at anto, the majority
amount of the leases met the recognition criteria as set out un
of R315 million.
IFRS16. On initial recognition at 1 April 2019, a Right of Use asset and corresponding Lease Liability of
The impactwas
35billion of the adoption of IFRS
recognised. 1631
As at Leases
Marchhas resulted
2020, the in SENTECH incurring
Lease liability a netto
grew loss for the year ofdue
R1,58billion R72 to
million.
the signific
The loss was as a result of applying the requirements of IAS21 in conjunction with the requirements of IFRS16. IAS
fluctuations in the foreign exchange rate between the spot rate at initial recognition and the report
21 is applicable because more than 90% in value of the SENTECH qualifying lease contracts for satellite capacity,
date
are as required
foreign currencyindenominated.
terms of IASThe21-Lease
The Effects ofrecognised
liability is Changes as in aForeign
monetary Exchange
asset per Rates. The foreign excha
IAS21 requirements.
difference
Since (loss) is recorded
it is a monetary under profit
asset denominated andcurrency
in foreign loss at itan amount
must of R315ormillion.
be remeasured revalued at the end of the
year using the prevailing spot rate. Due to the impact of COVID-19 and the economic conditions that South Africa
is facing, the ZAR/USD rate as at 31 March 2020 was R17,94. Comparing to the rate applied at initial recognition of
The impact of the adoption of IFRS 16 Leases has resulted in SENTECH incurring a net loss for the y
R 14,32 a loss on the difference in exchange rates of R 3,62 resulted in an unrealised forex loss of R315 million. The
of R72exchange
foreign million. loss
Theeroded
loss was as a from
the profit result of applying
operations whichthe
was requirements
R261m. The loss of wasIAS21 in cushioned
however conjunction
by with
requirements
finance of tax
income and IFRS16. IAS 21
receivable. is applicable
It should be noted because more
that the R315 than
million 90%
is not an in value ofloss
operational thebut
SENTECH
rather an qualify
lease contracts for satellite capacity, are foreign currency denominated. The Lease liability is recognise
unrealised accounting loss that will reverse if the ZAR strengthens against the USD.
a monetary asset per IAS21 requirements. Since it is a monetary asset denominated in foreign currenc
Investment in the existing network continued to ensure reliable and efficient network performance. SENTECH is
must be remeasured or revalued at the end of the year using the prevailing spot rate. Due to the imp
anticipating that analogue transmitters will be switched off in the 2021 year.
of COVID-19 and the economic conditions that South Africa is facing, the ZAR/USD rate as at 31 Ma
2020 was R17,94. Comparing to the rate applied at initial recognition of R 14,32 a loss on the differe
in exchange rates of R 3,62 resulted in an unrealised forex loss of R315 million. The foreign excha
loss eroded the profit from operations which was R261m. The loss was however cushioned by fina
income and tax receivable. It should be noted that the R315 million is not an operational loss but rathe
unrealised accounting loss that will reverse if the ZAR strengthens against the USD.
Investment in the existing network continued to ensure reliable and efficient network performan
SENTECH is anticipating that analogue transmitters will be switched off in the 2021 year.
31
FINANCIALSUMMARY
FINANCIAL SUMMARY
Table2:2:Financial
Table FinancialSummary
Summary
Description Year ended 31 Year ended 31 Year ended 31

March 2020 R’000 March 2019 R’000 March 2018 R’000
Turnover 1 480 928 1 399 127 1 349 590
Normalized EBIT (excluding shortfall in dual 261 202 154 650 141 919
illumination funding)
Dual illumination funding shortfall - - -
EBIT 261 202 154 650 141 919
EBIT margin % 17% 11% 11%
Net Profit / (Loss) (72 368) 201 330 152 792
Statement of Profit or Loss and Other (59 150) 308 463 152 541
Comprehensive Income
Cash generated from operations 441 854 74 974 (123 047)
Acquisition of Property Plant and equipment (72 922) (78 537) (110 216)
and Intangible Assets
Government grants received 218 203 177 305 215 789
Cash balances 1 516 393 1 112 407 916 149
Total Equity 2 295 793 2 334 051 1 920 014
Return on Equity (3%) 9% 8%
Revenueincreased
Revenue increasedbyby6% 6%(R81
(R81 million)
million) in in a challenging
a challenging economic
economic environment.
environment. The increase
The increase was a was
resulta result
of the
of the inflationary
inflationary increase
increase in in the
the content andcontent andservices
multimedia multimedia services
and a once andofasmartcards
off sale once off sale of smartcards
to USAASA. to
In addition,
USAASA. managed
SENTECH In addition, SENTECH
to write revenue managed to write revenue
from its international from
business of its international
R2 million. Despitebusiness of R2growth
the marginal million.in
revenues, SENTECH managed to report an operating profit of R261 million as a result of
Despite the marginal growth in revenues, SENTECH managed to report an operating profit of R261 million cost containment measures,
negotiated
as a result ofsatellite costs and an increased
cost containment measures, investment income.
negotiated However,
satellite costsdueandtoan theincreased
foreign exchange difference
investment income. on
Lease liability and adoption of IFRS 16 Leases, the Company incurred a net loss for the
However, due to the foreign exchange difference on Lease liability and adoption of IFRS 16 Leases, theyear of R72million.
company incurred a net loss for the year of R72million.
SENTECH managed to improve its cash flow position, closing the year at a cash balance of R1,5 billion, an increase
of R404 million from the prior year. This was through rigorous collection measures implemented coupled with the
SENTECH managed
settlement to improvedebt
of a long outstanding its cash
by a flow position,
significant closing
customer andthe year
grant at a cash
funding balance
received fromofthe
R1,5 billion, an
Shareholder.
increase of R404 million from the prior year. This was through rigorous collection measures implemented
coupled
The withhas
Company theactively
settlement of a the
monitored long outstanding
investment debtbeen
that has by made
a significant customer
in the DTT and
migration grant
project funding
and we are
receivedthat
pleased fromthethe Shareholder.
infrastructure has commenced its commercial phase. When dual illumination ceases, the existing
technologically impaired analogue network will be switched-off and our strategy is to proactively manage the further
The Company
investment hasoldactively
in the network monitored the investment
through innovative that
solutions. Thehas been
large made inofthe
proportion theDTT
R46 migration project
million investment
made
and wewas forpleased
are enhancing thatthe current
the network performance
infrastructure in lineits
has commenced with customers’phase.
commercial serviceWhen
level agreements.
dual illumination
ceases, the existing technologically impaired analogue network will be switched-off and our strategy is
Due to implementing
to proactively manage thethe
provisions
furtherofinvestment
IFRS 16 lease,
inliability
the oldofnetwork
R1,58 billion was introduced
through innovativetosolutions.
the balance
Thesheet in
large
the current year. This has resulted in the introduction of interest-bearing debt. It should be noted however that the
proportion of the R46 million investment made was for enhancing the current network performance in
liability is offset by a corresponding asset recognized at R1,21 billion. Therefore, taking this into account the debt level
line with customers’ service level agreements.
realized is within the Company’s target of 40 (debt): 60 (equity) and gearing limits of other industry peers. To achieve
our strategic objectives, we have continued to focus on effective risk management and compliance to applicable

32
adequate cash concern
as a going reserves to sustain
within operations
the current until March 2021.
economically This assertion
challenging is being made
environment. after
The testing
occurrence of COVI
various scenarios and considering relief measures being given to customers.
19 has presented business challenges that potentially impact on the going concern assumptions. It h
also
lawsafforded
Considering andthe the business
interventions
regulations. an toopportunity
thatphilosophy
Our risk are be implemented to reassess
and tolerance levels wereits
management business
is confident
considered whenmodel
that theand its
business
investment cost
will structure
decisions and
evaluate where cost savings can be realized. Various costs savings areas have been identified and we a
business
continue as a opportunities
going concern.were pursued.
working
As at 31 on
March plans
2020to ensurewas
SENTECH that these
solvent savings
(assets exceed materialise.
liabilities) andThe cost containment measures have be
The Company has reviewed the impact of the financial performance onliquid in that
the ability thecontinue
to entity hasoperating
adequate cash
as aidentified
reserves
going toinsustain
concern areas
within such
operationsas until
energy
the current Marchcosts, maintenance,
2021. This
economically travel
assertionenvironment.
challenging is being costs,
made employment
afteroccurrence
The testing various costs andandconsulti
scenarios
of COVID-19
considering relief measures being given to customers.
hascosts. Thebusiness
presented reassessment
challengesof that
these costs has
potentially impactresulted
on the in SENETCH’s
going ability to maintain
concern assumptions. It has also a profit th
contributing
afforded to interventions
the business
Considering the the
anstrength thatofare
opportunity the balance
totoreassess
be
itssheet.
implemented Themodel
business costs and
management issavings also
its cost
confident thatensure
structure that
to
the business cash
evaluate
will is retained
continue
where cost savings can be realized. Various costs savings areas have been identified and we are working
the
as business that can
a going concern. The be invested
Company for better
has reviewed thereturns.
impact of the financial performance on the ability to continue
on plans to ensure
operating thatconcern
as a going these savings materialise.
within the The cost containment
current economically measures have
challenging environment. been identified
The occurrence of COVID-19
in areas such
SENTECH’s as
has presented energy
customers costs, maintenance,
have notthat
business challenges been travel
immune
potentially costs, employment
to the
impact effects
on the costs
goingofconcern and
COVID-19 consulting
with many
assumptions. costs.
alsoThe
It has requesting
afforded payme
reassessment of these
the business costs hastoresulted
an opportunity reassessinitsSENETCH’s ability
business model andtoits
maintain a profit
cost structure thus contributing
to evaluate where costto the can
savings
deferrals.
strength of theSENTECH
be realized. balance
Various costsis savings
sheet. workingareasclosely
The costs savings
have with
been also each and
ensure
identified customer
that
wecash istoretained
are working ensure inthat
on plansthe we help
business
to ensure in can
thatthat
thesethis regard. T
savings
be entity has
materialise.
invested undertaken
The cost
for better to providing
containment
returns. payment
measures have relief for
been identified customers
in areas for acosts,
such as energy time period with
maintenance, travel payme
costs, employment
expected to be paid costslater.
and consulting
Debtors costs. The reassessment
pose a significantof risk
thesetocosts
thehasbusiness
resulted inand
SENETCH’s ability
the risk to becom
has
maintain a profit thus contributing to the strength of the balance sheet. The costs savings
SENTECH’s customers have not been immune to the effects of COVID-19 with many requesting payment also ensure that cash is
pronounced
retained in with
the COVID-19
business that canand
be we believe
invested for thatreturns.
better the measures taken will ensure customer retention a
deferrals. SENTECH is working closely with each customer to ensure that we help in this regard. The entity has
customer
undertaken tosustainability
providing paymentthusrelief
also for
contributing
customers for to aSENETCH’s
time periodsustainability.
with payment expected to be paid
SENTECH’s customers have not been immune to the effects of COVID-19 with many requesting payment deferrals.
later. SENTECH
Debtors pose a significantwith
riskeach
to the business and the riskwehas become pronounced with COVID-19
andThe future ispromises to be a taken
working closely challenging
customerone. GDPthat
to ensure is being forecasted
help to The
in this regard. contract significantly
entity has undertaken not
to just f
we believe that the measures will ensure customer retention and customer sustainability
providing payment relief for customers for a time period with payment expected to be paid later. Debtors pose a thus
alsoSouth Africa
contributing
significant but
riskto
to thefor
SENETCH’sthesustainability.
business world
and athas
the risk large.
becomeThis will have
pronounced withan impactandon
COVID-19 we SENTECH, itsmeasures
believe that the operations a
customers. Strictcustomer
taken will ensure measures will and
retention be customer
introduced to curb thus also contributing to SENETCH’s sustainability.
sustainability
services
key to ourtocattain alignment in the terms and conditions that are favourable to both parties. T
suppliers
StrictThe future promises
measures will be to be a challenging
introduced one.the
to curb GDP is being
costs forecasted
of doing to contract
business and significantly not just
offering quality for South
services toAfrica
company thewill be
world at entering
large. This into
will strategic
have an impactpartnerships
on SENTECH, itsand acquisitions
operations and in order
our customers. To this effect, SENTECH will be entering into contract negotiations with our key supplierswill be
but for customers. to
Strict maintain
measures its curre
introduced to curb the costs of doing business and offering quality services to our customers. To this effect, SENTECH
revenue
to attain streams
alignment in and diversify
the terms into new revenue
and conditions avenues. to both parties. The company will be
that are favourable
will be entering into contract negotiations with our key suppliers to attain alignment in the terms and conditions
entering into strategic partnerships and acquisitions in order to maintain its current revenue streams and
that are favourable to both parties. The company will be entering into strategic partnerships and acquisitions in
diversify into new revenue avenues.
order to maintain its current revenue streams and diversify into new revenue avenues.
_________________________
_________________________
_________________________
Rudzani Rasikhinya
Rudzani Rasikhinya
Chief Financial
Chief Officer
Financial
Rudzani Rasikhinya (Acting)
Officer (Acting)
Chief Financial
17 August 2020 Officer (Acting)
17 August 2020
17 August 2020
33
33
Sustainable Value-creation
Sustainable at a glance
Value-creation at a glance
Table 3: Sustainable
Table Value
3: Sustainable Creation
Value Creation
Strategic Pillar Capital Inputs Outcomes
• 6% revenue growth
• Strong balance sheet for new
• R1,3bn sales revenue
investments and acquisitions
• M&A deals not yet concluded
• Cost containment measures
Growth Financial • EBIT of R261m achieved against the
• Dual illumination funding
R116m target
• Necessary funding approvals
• Staff costs reduced to 32% from 34%
• Dual illumination funding secured
• Two digital products were developed
• Build platform for 4IR – artificial
i.e. IoT and e-learning.
intelligence and data analytics
Innovation Intellectual • Deployment of 5G trials nodes completed
• Enable smart villages and future
• SENTECH Connect brand in process for
networks: 5G/LTE Advanced Wi-Fi
Intellectual Property registration
• R95,5 million invested capex for • Customer satisfaction levels improved

infrastructure, R&D and technology from 68.25% to 73%.
refresh • Weighted network availability of 99.88%
• Network management & monitoring achieved against the SLA target of 99.80%
Customer Centricity Manufactured
• 180 high sites maintained to guarantee • 361 000 DTH smartcards were delivered
uninterrupted service provision • Nineteen 3rd Party Contract
• Expand facility leasing Management have been signed by
traditional houses for facility leasing
• A total number of 506 employees • R375 million paid in salaries and benefits
embracing the SENTECH WAY culture • Employee engagement level of 50%,
Culture Change Human • Employee engagement leaves room for improvement
• Skills audit • 98.38% of planned digital skills training
• Talent management interventions were implemented
• Enterprise and Supplier Development • Improved B-BBEE rating to level 1

spend of R7m • Impacted lives of surrounding
• Preferential procurement spend of R144 communities where our sites are located
Social and 993 460 million on designated groups • University collaboration initiatives
Transformation
Relationship • R13 million or 3% payroll expenditure resulted in an average pass rate of 16
invested in Skills Development students out of 18. (88,8%)
• Corporate social investment of around
R6 million
Operational Excellence Natural • Implementing solar energy panels • Reduction of electricity costs
• Implement and monitor stakeholder • Brand score of 72% achieved

management strategy • Reputation of 65% which was below 77%
Social and • Social Media policy implemented and against other comparative studies
Reputation
Relationship monitored
• Reputation and Brand Survey conducted
34
Engaging our stakeholders
Engaging our stakeholders
Effective stakeholder relationships management is central to the business of SENTECH as it has implica-
Effective stakeholder
tions for relationships
the achievement management
of corporate is central
objectives, to the
hence business
constant of SENTECH
monitoring as evaluation
and it has implications
of howforthethe
achievement of corporate objectives, hence constant monitoring and evaluation of how the
company is engaging with stakeholders is necessary. Our stakeholder engagement aims to achieve high company is engaging
with stakeholders
levels is necessary.
of stakeholder Our stakeholder
satisfaction; establish engagement aims to achieve
trust, good reputation and high levels ofwith
legitimacy stakeholder satisfaction;
stakeholders; en-
establish
sure stakeholder interests are aligned to the company strategy and ensure sustainable stakeholder to
trust, good reputation and legitimacy with stakeholders; ensure stakeholder interests are aligned en-the
company strategy and ensure sustainable stakeholder engagements and reporting.
gagements and reporting.
Our stakeholder approach includes the following:
Our stakeholder approach includes the following:
• Identifying material
• Identifying stakeholders
material stakeholdersandand
confirming stakeholder
confirming stakeholder relationship
relationshipowners
owners
• Response to stakeholder
• Response issues
to stakeholder andand
issues concerns
concerns
• Identifying issuesissues
• Identifying in stakeholder’s environment
in stakeholder’s that will/may
environment impactimpact
that will/may the relationship with SENTECH
the relationship
with SENTECH
(commercially and and
(commercially otherwise)
otherwise)
• Identifying and mapping
• Identifying and mapping influencers around
influencers topics
around or or
topics issues ofofinterest
issues interest
• Reporting on stakeholder
• Reporting on stakeholderengagement
engagement outcomes.
outcomes.
Table
Table 4: 4: Stakeholder
Stakeholder Approach
Approach
Stakeholder Profile Means of Engagement Priority Interests
Shareholder • Ministry of • Participation and support for • SOE sustainability

Communication & Digital shareholder events and fora • ICT development and contribution
Technologies • Timely submission and to economic growth
presentation of quarterly and • Achievement of strategic goals
annual reports • Fourth industrial revolution
• Annual general meetings • ICT SMMEs and B-BBEE
advancement
Outcomes • The Company maintained a healthy relationship with the Shareholder by delivering on
predetermined objectives, supporting shareholder events and aligning objectives to support
priority interests including SMMEs, and B-BBEE. The Company complied to statutory requirements
by timely submission of reports and attendance of Shareholder meetings.
Government • Parliament • Submission and presentation of • Broadcast industry development

• Three spheres of quarterly reports and contribution to economic
government • Annual reports Tabling growth
• Oversight Visits • DTT roll out
• Connected public facilities
Outcomes • SENTECH’s parliamentary engagement has been positive. SENTECH’s performance has been
applauded by Parliamentary committee. The Company has engaged DCDT on expediting digital
migration process.
Employees • Staff complement of • Employee engagements • Conducive, empowering and fair
more than 500 • Regional visits working environment
• Quarterly Business TV address • Career advancement
• Internal website and publications • Occupational health and safety
• Internal events • Adapting to the changing world of
• Divisional workshops work
• Video & Tele conferencing
Outcomes • SENTECH has made efforts to engage its employees with some more room for improvements as
we develop an engaged workforce. The Company has ensured that employees were informed and
supported on pertinent issues affecting their well-being.
35
Stakeholder Profile Means of Engagement Priority Interests
Customers • Public, commercial and • Customer engagements • Excellent customer services and
community broadcasters workshops value for money
• Government • Contact centre • Innovative solutions
departments • Website
• State-owned companies • Meetings
• Private sector • Exhibitions and events
• Video & Tele conferencing
Outcomes • Constant engagement with our key customers has ensured improvement in our customer
satisfaction levels.
Suppliers • Various suppliers of • Supplier Day • Collaboration and payment on

goods and services • Meetings time
• Site visits • Sustainability of their business
enterprises
Outcomes • Engagement with our suppliers ensures issues are addressed and impact on our delivery is
minimized and their sustainability is enhanced.
Regulators and • ICASA • Submissions and presentation • Compliance

other agencies • Industry bodies • Lobbying and advocacy • Partnership
• Entities Under Ministry of • Collaboration
Communications & Digital
Technologies
Outcomes • SENTECH has engaged the Regulator by articulating the company’s positions on regulatory issues
such as Wholesale Open Access Network and Frequency matters.
Media • Media and interest • Publications • Informed and good corporate

groups • Media networking responsibility
• Social partners • Advertorial • Corporate responsibility
• Video & Tele conferencing • Information
Outcomes • SENTECH has maintained good relations with the media by providing and responding to
information requests and interviews on matters like SENTECH Connect. The Company has not
suffered any reputational damage due to effective engagement with the public and media.
Communities • Communities surrounding • Community Fora • Community development

our sites • Charity events • Risk Management
• Communities, tribal • Briefing Sessions • Strengthening of Relations
leaders • Meetings • Fostering Asset Value
• Councillors • Direct Mail • Restoration of Human Dignity
• Local Parliamentary
Constituency Offices
Outcomes • The Company has cemented good relations with surrounding communities on our side through
corporate social investments and community events.
Organized • More than 60% of • Consultation • Workers’ interests

Labour employees belong to the • Negotiations • Consultation and involvement in
bargaining unit • Bargaining agreements decision making that affects
workers
Outcomes • SENTECH managed to address most of the industrial issues brought about by organized labour
thorough processes of consultation, negotiations and bargaining agreements.

36
Table 5: Issue Management
Table Issue
Table5:5:Issue
IssueManagement
Management Issue description Our response
ssue Management
Table 5: Issue Management
SENTECH-BBI
Issue Uncertainty onIssue
the process of SOC
description Shareholder has been engaged on the
Our response
Merger rationalisation that involves the process of rationalisation and an independent
SENTECH-BBI Merger amalgamation
Uncertainty on of the
SENTECH andofBBI
process SOCto ratio- advisory supporthas
Shareholder provided to ensure on
been engaged a seamless
the process of
establish a New Broadband Network integration without destroying shareholder
nalisation that involves the amalgama- rationalisation and an independent advisory
Company. value.
tion of SENTECH and BBI to establish a support provided to ensure a seamless integration
Customer non- Concluded engagements with customers to
New Broadband Network Company. without destroying shareholder value.
payments Management of defaulting customers finalise payment plans and significantly
Customer Management of defaulting customers. improved Concluded the company balancewith
engagements sheet.
customers to final-
Covid-19
non - payments Covid-19 announced as pandemic and Covid-19 Business Continuity
ise payment plans and significantly Plan improved
and the
the country locked down, creating a Communication plans developed and
company balance
- All air travel sheet. during lockdown 4 including conferen
suspended
need to reorganise our operating implemented before national lockdown
Covid-19 model escalating
Covid-19 the riskasofpandemic
announced further and - Work from home
• Covid-19 Business Continuity Plan and
non-payment as well as
the country locked down,- business
creating a - Communication plans developed and
continuity uncertainty.our
need to reorganise - operating model - implemented before national lockdown.
escalating the risk of further non- • Work from home.
-
payment as well as business continuity - • All air travel suspended during lockdown 4
uncertainty. including conferences and events.
• Infections case reporting system activated.
• Covid-19 Business Continuity Management
ormation Committee established effectively from March
economic Socio-economic
transformation transformation 2020 and meeting twice a week.
SENTECH is committed to ICT industry transformation and uses various resources and platforms to
Socio-economic transformation
H is committed
SENTECH
to ICT
advance
e sustainable
isindustry
committed
sustainable
Socio-economic
advance
socio-economic
transformation
to ICT industry
socio-economic
sustainable
development
andtransformation
uses various
development
transformation
socio-economic
resources
and usesand
various
and transformation.
and transformation.
platforms
resources
development and transformation.
to and platforms to
Broad-Based Black Economic Empowerment (B-BBEE)

SENTECH
SENTECH isis committed
Based Black Broad-Based
committed
Economic Empowerment
totoICT
Black Economic
ICT industrytransformation
industry
(B-BBEE)
transformation
Empowerment (B-BBEE)
andand uses
uses various
various resources
resources and and platforms
platforms to ad-
to advance
sustainable
vance
The company’ssocio-economic
sustainable development
socio-economic
focus on B-BBEE has been and
development
on: transformation.
and transformation.
mpany’s focusThe oncompany’s
B-BBEE hasfocus
beenon on:B-BBEE has been on:
Broad-Based
• Improving
Broad-Based Black Economic
Blackblack Empowerment
Management
Economic Control(B-BBEE)
Empowerment within the company.
(B-BBEE)
mproving black• • Management Control within the company.
The Company’s focus on B-BBEE has been on:
• Support
The •company’s
kills Development (SD) ofEnterprise
black on
focus andinside
people
B-BBEE Supplier
hasandDevelopment
on: the (ES
outside
been company.
upport Enterprise
• Improvingcompanies.
• Support
andblack
Supplier
Enterprise
Development
Management and Supplier
(ESD)Development
Control of blackthe
within owncompany.
(E
• Improving black Management Control within the Company.
ompanies.• Skills Socio-Economic
• Development
companies. Development
(SD) of black (SED) ofinside
people communities
and to enable access
outside to the economy.
• Skills Development (SD) of black people inside and outsidethethecompany.
Company.
ocio-Economic • •Development
• Support Socio-Economic
Enterprise
Support (SED)
andDevelopment
Enterprise of communities
Supplier
and (SED)
to enable
Development
Supplier of communities
Development access
(ESD)
(ESD)ofto
of to
the
enable
black economy.
blackownedaccess
owned andto
and the economy.
managed
managed companies.
companies.
• Socio-Economic
• Socio-Economic
B-BBEE Development
Development
Scorecard over the (SED)
past three (SED)of communities
of communities
financial to
years (FY2016/17 enable
to enable access to the economy.
access to the economy.
– FY2018/19)
Scorecard over
B-BBEEthe Scorecard
past threeover
financial
the past
yearsthree
(FY2016/17
financial–years
FY2018/19)
(FY2016/17 – FY2018/19)
B-BBEE
Table Scorecard over the past three financial years (FY2017/18 – FY2019/20)
6: B-BBEE Scorecard
B-BBEE Table
Scorecard
Table 6: B-BBEE Scorecard
6: B-BBEE Scorecard
Table 6: B-BBEEElement
Scorecard Company Score Target
Score
FY2017/18 FY2018/19 FY2019/20
Management & control 16.38 16.59 14.71 20.00
Skills development 18.23 17.06 19.46 30.00
Enterprise & Supplier Development 49.02 53.16 55.36 59.00
Socio-economic development 12.00 11.55 12.00 12.00
OVERALL SCORE 95.64 98.36 101.53 121.00
LEVEL CONTRIBUTOR TWO TWO ONE ONE
ement Control
Management Control 38
37 37
37
37 SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
2019/20
SENTECH is committed to the implementation of a three-year employment equity plan aimed at
Management
driving
SENTECH theControl
isachievement
committed to of the
our implementation
transformation objectives and B-BBEE
of a three-year levels. Considerable
employment progress
equity plan aimed at
has
Management been
driving themade
Control in the following areas:
Management
SENTECH
SENTECH isachievement
Control
committed
is committed to the
of the
to our implementation
transformation objectives
implementation of aofthree-year
and B-BBEE
a three-year levels. Considerable
employment
employment equity
equity planplan
aimed
progress
aimed at
at driv-
has been
driving themade in the
achievement following
of our areas:
transformation objectives and B-BBEE levels. Considerable progress
ing SENTECH
the
Table
SENTECH
SENTECH 7:
is is committed
achievement
Employment
is committed
committed oftoour toimplementation
toEquity
the
the the
Planimplementation
transformation
implementation aofthree-year
objectives a three-year
and
of aofthree-yearB-BBEE employment
levels.
employment
employment equity equity
Considerable
equity
plan plan
aimedplan
at aimed
progress
aimed has
driving at
at been
driv-
the
made has in
achievementbeen
drivingthe themade
following
of our in the
achievement following
areas: of
transformation our areas:
transformation
objectives and objectives
B-BBEE levels. and B-BBEE
Considerable levels. Considerable
progress has been progress
made in the
ing Table
the achievement
7: Employment of our transformation
Equity Plan objectives and B-BBEE levels. Considerable progress has been
made hasinbeen
following areas:
the made in the
following following areas:
areas:
TableTable 7: Employment
7: Employment EquityEquity
Plan Plan
Table
7:7:Employment
Employment Equity
Equity Equity
Plan Plan
Plan
Skills▪ Development
Skills Development
The Company is committed to implementing skills development initiatives both internally and
Skills▪Skills Development
externally.
Development
The Company Theisfocus for training
committed was on digitalskills
to implementing skilling and transformation.
development initiatives both internally and
• The• Skills
Company
The is committed
Development
Company is to implementing
committed to implementing skills development
skills development initiatives
initiativesboth
bothinternally
internally and
and externally.
▪▪ Skills
The Development
externally.
Company The isfocus (SD)
for spend
committed training
towaswasason
follows:
implementingdigitalskills
skilling and transformation.
• externally.
The Company Theisfocus
The focus for for training
training
committed was
to on was onskilling
digital
implementing digitalskills
skilling
and and transformation.
transformation.
Skills
▪• ▪ Development
The The Development
externally.
Company The isfocus(SD)
for
committedspend
training
towas as on
aswas follows:
implementingdigitalskills
skilling and transformation.
• externally.
Skills Skills Development
focus (SD)
for spend
(SD) was
spend
training was ason
was follows:
follows:
digital skilling and development
transformation. initiatives both internally and
Table
Skills 8:
externally.
▪ Development
• Skills Skills
Development
The Development
(SD) focus(SD)
for spend
spend aswas
training
was wasason
follows:follows:
digital skilling and transformation.
Table
Table 8:
8: Skills
▪ Table
Skills Development
8: Skills Development
Development
Skills Development (SD) spend was as follows:
Table 8: Skills
TableDevelopment
8: Skills Development
Table 8: Skills Development
Enterprise and Supplier Development

Enterprise
Through theand Supplier Socio-Enterprise
Company’s Development and Economic Development (SEED) unit, four enterprises were supported
Enterprise and Supplier Development and Economic Development (SEED) unit, four enterprises were
through grant funding of R Socio-Enterprise
Through the Company’s 6,1 million-Enterprise and Economic
for the following Development (SEED) unit, four enterprises
initiatives:
supportedEnterprise and
through Supplier
grant
Through the Company’s Socio-Enterprise Development
funding of R 6,1 million for the following initiatives: unit, four enterprises were
-Enterpriseand andEconomic
EconomicDevelopment
Development(SEED) (SEED) unit, four enterprises
•supported
Game development
Enterprise and
through innovation
Supplier
grant with
Development
funding of R 7 aspirant
6,1 million young
for the innovators.
following initiatives:
• Through
Gamethe development
company’s innovation
Socio- with 7 aspirant young innovators
•• Expose
Game and empower
Game
development
▪• Expose development unemployed
innovationinnovation
with youth
7with in7digital
aspirant aspirant
young skills
youngin rural areas.
innto..rs
innovators.
and empower unemployed youth in digital skills in rural areas
were supported through grant funding of R 6,1 million for the following initiatives:
▪• Through
•• Integrated
Expose Expose
Game
the
andplatform
Integrated
company’s
empower
and empower
development
platform
Socio-
forunemployed
a for
Smart Cityyouth
aunemployed
innovation
Smart solution
with
City youthfor in
community
in7digital skills
fordigital
aspirant
solution youngin using
rural
skills
community in comUnity
areas.
rural
innto..rs
using areas app
comUnity appaccessible
accessiblethrough
through any
any
device.
were
• Integrated supported
device platform through
for a grant
Smart funding
City solutionof Rfor
6,1 million forusing
community the following
comUnity initiatives:
app accessible through any
▪▪ Integrated
• Deliver Expose
Game
Fibre to and platform
empower
development
the for a Smart with
unemployed
innovation Cityyouth
solution foryoung
in digital
7 aspirant community
skills using
in rural
innovators comUnity app accessible
areas
• Deliver
device. Fibre toHome
the Homein townships.
in townships.
▪▪ Integrated
Game platform
development for a Smart with
innovation City solution
7 aspirant foryoung
community using comUnity app accessible
innovators
▪ through
• Expected
Deliver Fibre
Expose to
impact any
the
and ondevice
Home
these in
empower townships.
unemployed
initiatives includesyouth in digital
innovation, skills
job in rural connectivity
creation, areas and youth
Expected
empowerment.
▪ impact
Deliver
▪ through
Integrated
Expose on
any
and these
Fibre to
device
platforminitiatives
the
empower Home includes
in
forunemployed
a Smart innovation,
townships.
Cityyouth
solution job creation,
for community
in digital connectivity
using
skillscreation,
in rural and youth
comUnity app
areas empowerment.
accessible
Expected impact on these initiatives includes innovation, job connectivity and youth
Expected
▪▪ Deliver
empowerment.
through impact
Integrated Fibre toonthe
anyplatform
device these
for ainitiatives
Home Cityincludes
in townships.
Smart solutioninnovation,
for community job using
creation, connectivity
comUnity and youth
app accessible
Preferential
Preferential
empowerment.
Expected Procurement
Procurement
impact onthethese initiatives includes innovation, job creation, connectivity and youth
▪ Deliver
through Fibre to
any device Home in townships.
Preferential
empowerment. Procurement
SENTECH Expected
▪ Deliver
SENTECH impact
complies
complies Fibre toonthe
with
with thethese
the Home initiatives
Broad-Basedin townships.
Broad-Based Blackincludes
Black Economic
Economicinnovation,
Empowerment
Empowermentjob creation,
ActAct
andandconnectivity
shall advance
shall advanceandobjectives
its itsyouth
objec-
empowerment.
through
tives
SENTECH
the supply
Expected
through the
complies
chainonmanagement,
impact
supply these
chain
with the
amongst
initiatives
management,
Broad-Based
other initiatives.
includes
amongst
Black innovation,
Economicother job creation,
initiatives.
Empowerment connectivity
Act and anditsyouth
shall advance objec-
tivesempowerment.
through the supply chain management, amongst other initiatives.
Preferential Procurement
Preferential Procurement
Preferential Procurement SENTECH INTEGRATED REPORT 2019/20 38
38
Preferential Procurement SENTECH INTEGRATED REPORT 2019/20 38
38
38REPORT 2019/20
SENTECH INTEGRATED
The performance for FY19/20 is tabled below:
The Table
performance
performance forFY19/20
for FY19/20
9: Preferential is tabled
is tabled
Procurement below:
below:
Table9:9:Preferential
Table PreferentialProcurement
Procurement
In order
ordertotodrive
drivethe
the Transformation agendamoremore aggressively, the Targets for 2020/21 have been set as
In In order to drivetransformation
the Transformation
agenda agenda more aggressively,
aggressively, the
the targets forTargets
2020/21 for 2020/21
have been sethave been set
as follows:
follows:
as
• follows:
75% spend on black owned enterprise with a 51% black ownership
• 75% spend on black owned enterprise with a 51% black ownership
• 40% spend on black owned enterprise with a 30% black female ownership
• 40%• spend
30% on black
spend owned enterprise
on companies with and
a 30%
who areenterprise
EMEs black which
QSEs female2% ownership
• 75% spend on black owned with(of
a 51% black must be apportioned to military veterans,
ownership
• 30% spend on companies who are EMEs
1% to people living with disabilities) and QSEs (of which 2% must be apportioned to military
•
veterans, 40% spend on black owned enterprise with a 30% black female ownership
• 15%1% to people
spend living with
on companies whodisabilities)
are youth owned.
• 30%
• 15% spend spend on companies
on companies whoowned.
who are youth are EMEs and QSEs (of which 2% must be apportioned to
military veterans, 1% to people living with disabilities)
Socio-Economic Development
• 15% Development
Socio-Economic spend on companies who are youth owned.
SENTECH drives Socio-economic Development through providing capacity for Mindset Health connectivity. The
Socio-Economic
SENTECH
FY2019/20 drives
year was Development
Socio-economic
the Development
last of Mindset support asthrough
per theirproviding
request tocapacity for Mindset
disconnect Health connectiv-
due to difficulty in securing
content delivery.
ity. The FY2019/20 year was the last of Mindset support as per their request to disconnect due to diffi-
SENTECH
culty drives
in securing Socio-economic
content delivery. Development through providing capacity for Mindset Health
connectivity.
Corporate The FY2019/20
Social Investment (CSI) year was the last of Mindset support as per their request to
disconnect
Corporate Socialdue to difficulty
Investment (CSI)in securing content delivery.
SENTECH Corporate Social Investment is aimed at community development through:
SENTECH Corporateprogrammes
• Educational Social Investment is aimed
that promote at community
science, technology development through:
and mathematics.
Corporate
• Educational Social
• Charitable Investment
programmes
initiatives that
for the (CSI)
promote science,
benefit of technology
disadvantaged and mathematics.
communities.
• Charitable initiatives
• Connectivity for theto
initiatives benefit
bridgeof disadvantaged
the digital divide. communities.
SENTECH Corporate
• Connectivity initiativesSocial Investment
to bridge is aimed
the digital divide.at community development through:
The Company remains committed to the course and continues to support the CSI objectives. The focus on
▪ Educational programmes that promote science, technology and mathematics.
communities adjacent to our sites is in line with the CSI Strategy. The Company supported the following
▪ Charitableadjacent
on communities initiatives
to for
ourthe benefit
sites of disadvantaged
is in line communities.
with the CSI Strategy. The company supported the follow-
initiatives:
Connectivity initiatives to bridge the digital divide.
ing ▪initiatives:
Table
Table 10: CSI10: CSI
TableThe
10: Company
CSI remains committed to the course and continues to support the CSI objectives. The
Table 10: CSI
CSI INITIATIVES PROGRESS
focus on communities adjacent to our sites is in line with the CSI Strategy. The company supported
theDonation
Blood following initiatives:
20 pints of blood were collected as part of our blood donation
campaign. 1 Pint is estimated to save 3 lives.
Youth Career Supported the Vaal Academy career day with Technology to
encourage youth in the Vaal area to study Maths and Science to
enhance and increase the skills shortage
Government Outreach Supported the Presidential event, sponsored 5 Ministers’ digital
Program migration awareness campaigns. Donated sports gear and accessories
for the community tournament in Mnquma Municipality together
with COO.
Initiated the planting of trees as part of environmental conservation.
Mandela Day
University Collaboration Supported three universities in research and bursaries for

39
Engineering students
School connectivity The Company has over the years been supporting 19 public schools in
programme underserviced areas with connectivity for internet access
39
DELIVERING OUR STRATEGIC MANDATE

DELIVERING ON
Performance OUR STRATEGY
Against AND MANDATE
Predetermined Objectives
Table
Table 11:Performance
11:Performance Against
Against Predetermined
Predetermined Objectives
Objectives
Strategic Objective KPIs Annual Actual Achieved/ Actual Performance Variance Explanation
Goal Target Performance Not Achieved (FY2018/19) For FY2019/20
(FY2019/20) (FY2019/20)
SG1: Sustainable Maximise Sales revenue (R) R1,265 million R1,335 million Achieved Revenue R1,268m This was due to bulk
business growth Company value (cumulative) (cumulative) against the target of sale of the smart
R1,290m. Not cards and
achieved overperformance of
the DTH and MW
portfolio. TV
overperformance is
due to analogue
revenue contribution
as the ASO is delayed.
Earnings before R116 million R261 million Achieved R155m EBIT achieved The EBIT
Interest and Tax (cumulative) (cumulative) overperformance was
(R) mainly due to above
budget revenues and
lower than planned
costs in the period.
SG2: Create Develop digital % planned digital 85% of planned 98.38% of planned Achieved 163% training Focused
digitally capabilities and skills training digital skills trianing digital skills training interventions on implementation
connected platforms interventions interventions interventions were digital skills resulted in the
societies implemented implemented implemented implemented attainment of this KPI
Number digital Two digital products Two digital products Achieved Two digital products Better planning and
products launched for launched for developed (Fixed focus on execution
launched for customers customers i.e. IoT Wireless & OTT) resulted in the
customers and e-Learning attainment of this KPI
41
41
(FY2019/20) (FY2019/20)
Smart Village 5G Smart Village 5G Smart Village 5G Achieved N/A for the previous Better collaboration
Enable trials access node trials access node trials access node for FY2018/19 resulted in the
connected developed and developed and developed and attainment of this KPI
communities deployed for one deployed for 1 deployed for 1
commercial commercial commercial customer
customer customer in the Northwest.
% customer Customer Customer satisfaction Achieved Customer satisfaction Execution and focus
SG3: Achieve satisfaction satisfaction levels levels of 73% level of 65% against on delivery resulted
excellent Achieve high achieved of baseline + 5% 80% target in the attainment of
customer and customer (68.25%) this KPI
stakeholder satisfaction
satisfaction levels 99.80% of Weighted average Weighted average Achieved Achieved 99.85% of Better network
weighted average availability based availability based on Weighted average maintenance resulted
network on product product revenues of network availability in the attainment of
availability based revenues of 99.88% on product revenues this KPI
on product 99.80% against the 99.80%
revenue target
Implementation Implementation Implementation Plan Achieved N/A for the Better planning and
Plan for new Plan for new for new Broadband FY2018/19 collaboration resulted
Broadband Broadband Network Company in the attainment of
Network Network Company developed and this KPI
Company developed for submitted to the
developed for submission to Shareholder
submission to Shareholder
Shareholder
Enhance % of allocated 100% of allocated Allocated budget Achieved ESD and SED and SD Focused execution
Company budget spent on budget spent on spent on Enterprise targets achieved and collaboration
reputation and Enterprise Enterprise Supplier Supplier resulted in achieving
transformation Supplier Development Development (ESD) this KPI
Development (ESD) at 104%
(ESD) and % of and 1.5% of and budgeted NPAT
42
42
(FY2019/20) (FY2019/20)
NPAT spent on budgeted NPAT Spent on Socio
Socio Economic Spent on SED. Economic
Development Development (SED)
(SED) at 147%
Clean Audit Clean Audit Clean Audit Achieved Achieved Clean Audit achieved Effective corporate
Achieved Achieved governance
implemented
43
43
Chief Operations Officer’s Review
Driven by the organization’s growth and sustainability objectives, SENTECH

focused on creation of new core capabilities, continuity of services, business
growth, enhancing operational efficiency, improving the work conditions and
sustainability of the environment within which we operate. These focus areas
are critical to elicit creation of value for customers, shareholder and employees
and ensure long-term sustainability. The last quarter of the 2020 FY was made
complex by the corona outbreak and demanded special care to protect services
and the wellbeing of the SENTECH workforce.
We focused on capability and digital transformation to create new value and

enable our market through our creative solutions. Our Research and Innovation
(R&I) agenda focused on Broadband and Media capability enhancement.
DuringMrthisTebogo Leshope deployed two
year we successfully Mr5G Siphamandla Mthethwa
test sites at the STP (Sender Technology Park) and the Nasrec
(COO) CFO
disaster recovery site and developed a true FTA streaming service.
Our servicethe
products yielded
1st March 2018 a positive and above inflation growth
Financial of 6% across all products, this growth was mainly
Officer
driven by the Direct to Home (DTH), Television and International business portfolios. Our business growth strategy
has expandedQualifications
with an additional 61 broadband sites from 37 in the previous FY to 98 in the 2020 FY.
Qualifications
(Electrical
For the year underEngineering), MBA and connectivity
review, the media *Resigned 30 April 2020
core services platforms were successfully managed, leading
to achievement of the 99,88% against the corporate network availability of 99.8%. SENTECH improved Information
SENTECH
technology INTEGRATED
governance and REPORT 2019/20 during the year to break a six-year high, with 85% overall
control environment
improvement on the IT control environment.
Against the backdrop of pedestrian media services growth, the organization created new broadband capabilities
focusing on the South Africa Connect (SA-Connect), public sector and other markets. The broadband capabilities
were successfully launched during the year, now with extended connectivity operations in the Umzinyathi, OR
Tambo and Pixley-ka-Seme districts, targeting expansion to other markets areas in the following years.
To ensure the company long term sustainability, we are working towards achieving an efficient operating model in
delivering our mandate and services. The organization optimized use of its satellite capacity resources, energy and
travel to achieve 6% efficiency gain. Our Smart energy solutions combined with the introduction of energy efficient
technologies has enabled the organization to achieve value retention with a 12,46% efficiency gain on energy for
the year.
We made good progress on a number of environmental compliance requirements and improved our working
conditions in projects across the organization. SENTECH concluded deployment of green energy solutions at its
head office and is now expanding to its core infrastructure sites. Our workforce safety level has improved with safety
performance moving 0,0252 in the 2019 FY to 0.1465% in the 2020 FY, well below the 1% limit, largely because of
safety awareness campaigns and a zero-tolerance approach to safety incidents.
Although the year was challenged by ESKOM load shedding, resulting in use of diesel power, we made significant
progress on our carbon footprint reduction process achieving a decrease of approximately 1900 Tons of emissions
due to reduced diesel power compared to the previous financial year, but due to less load shedding as compared to
the previous financial year there was an increase of approximately 12000 tons in indirect emissions such as electricity
usage. Implementation of energy efficient solutions in the coming MTEF will see a further decrease in the indirect
emissions.
Looking ahead
The 21st century quantum technology shift requires proficiency and agility to secure market share within the
window of opportunity to remain future fit. The SENTECH technology strategy considered the Technology and
consumer evolution realities and challenges in context below.
44
the 12000
windowtonsof
in indirect emissionstosuch
opportunity remain future fit. The SENTECH technology strategy considered the Technol-
the coming MTEF will see a further decrease in the indirect emissions.
ogy and consumer evolution realities and challenges in context below.
Future of Television and Radio

Looking ahead
Traditional mediaquantum
The 21st century services will evolve
technology through
shift requires digitization
proficiency and
and agility introduction
to secure of within
market share alternative platforms, to
theoperational
drive window of opportunity
efficiency to remain
and future consumer
enhance fit. The Sentech technologyThe
experiences. strategy
5th considered thetechnology will drive
generation
Future of Television
Technology and Radio realities and challenges in context below.
and consumer
media services evolutionevolution
going into the next MTEF period and SENTECH will deploy the 4th Industrial
Revolution
Traditional and
media5G technologies
Future of Television services in collaboration
and Radio will evolve with the market
through digitization and key customers
and introduction to explore
of alternative use to
platforms, cases
drive
and enhance value to consumers.
operational efficiency and enhance consumer experiences. The 5th generation technology will drive media services
Traditional media services will evolve through digitization and introduction of alternative platforms, to
evolution going into
drive operational the next
efficiency and MTEF period
enhance and experiences.
consumer SENTECH will Thedeploy the 4thtechnology
5th generation Industrialwill
Revolution
drive and 5G technologies
in media
collaboration
Changing customer with the
needs market and key customers to explore use cases and enhance value
services evolution going into the next MTEF period and SENTECH will deploy the 4 Industrial
th to consumers.
Revolution and 5G technologies in collaboration with the market and key customers to explore use cases
and enhance
Changing value to needs
customer consumers.
Customers and modern-day consumers of content want to be connected on Any-devise, Any-where and
Any-time.
ChangingTo meet these
customer needs consumer needs, SENTECH will expedite introduction of mobile and broadband
Customers and modern-day consumers of content want to be connected on Any-devise, Any-where and Any-time.
services. Consumers are also demanding technological efficiencies, putting pressure on traditional media
ToCustomers
meet these andconsumer
modern-dayneeds, SENTECH
consumers willwant
of content expedite introduction
to be connected of mobileAny-where
on Any-devise, and broadband
and services. Consumers
and older
areAny-time.
platforms,
To meet these
also demanding
ourconsumer
focus isneeds,
technological
to conclude theexpedite
SENTECH putting
efficiencies, will Television migration,
introduction
pressure
introduce
of mobile
on traditional and digital radio, expand of-
broadband
media and older platforms, our focus
fering through
is services.
to conclude OTT
Consumers services,
the Television develop
are also demanding
migration, the SA based
technological
introduce satellite
efficiencies,
digital and
putting
radio, expansion
pressure
expand of broadband
on traditional
offering media
through coverage
OTT services, acrossthe
develop
the and older platforms, our focus is to conclude the Television migration, introduce digital radio, expand
SAcountry.
based satellite and expansion of broadband coverage across the country.
offering through OTT services, develop the SA based satellite and expansion of broadband coverage
across the country.
Increasing
Increasingtechnological
technologicalinnovation
innovation
Increasing technological innovation
Introductionofofonline,
Introduction online, cloud
cloud andand 5G services will
willallow
allowSENTECH and other operators elasticity and flexibility to
Introduction of online, cloud and 5G 5G services
services will allow SENTECH SENTECH
and other and other
operators operators
elasticity and elasticity and flex-
expand
ibility to
to expand
flexibility new market
to to
to expand new outlets.
newmarket Although
outlets.
market outlets. this reality
Although
Although may
thismay
this reality destruct
reality may
destruct the current
thedestruct SENTECH core,core,
the current
current SENTECH we are core,
SENTECH embracing
we
the vitality
are embracing of
we are embracing change
thethe for
vitality long term
ofchange
vitality of change sustainability
for long
for long of the organization.
term sustainability
term sustainability Leveraging
of theLeveraging
of the organization. the 4 Leveraging revolution
organization.the 4th
th industrial the 4th
technologies,
industrial Cybertechnologies,
industrialrevolution
revolution security, Energy
technologies, efficiency,
CyberCyber Satellite
security,security,
Energy capacity
efficiency,
Energy efficiency
Satellite capacity
efficiency, are key focus
efficiency
Satellite areasefficiency
are key
capacity for the organization
are key
in focus areas for the
the following organization
MTEF term. in the following MTEF term.
focus areas for the organization in the following MTEF term.
_________________________
_________________________
__________________________
Tebogo
Tebogo
TebogoLeshope
Leshope
Leshope
Chief
Chief Operations
Operations
Chief Officer
Officer
Operations Officer
1717 August
17 2020
August2020
August 2020
45
45
Network Performance
Network Performance
Network
Network Performance
infrastructure management, refers mainly to the competent operation and mainte-
nance of technical and civil
Network infrastructure management, infrastructure
refers on all SENTECH’s
mainly high sitesoperation
to the competent and Teleport. In addition of
and maintenance
Network
to
technical infrastructure
maintenanceand civil management,
activities, onrefers
the timeous
infrastructure mainly to
allrefreshing
SENTECH’s the
highcompetent
of ageing andoperation
infrastructure
sites and Inmaintenance
ensures
Teleport. a high level of
addition to
technical and civil
of customer activities,
maintenance infrastructure
assurancethe and on all SENTECH’s
servicerefreshing
timeous quality. SENTECH high sites
of ageing investedand Teleport.
capital
infrastructure In addition
primarily
ensures a high to
forlevelmaintenance
innovation,
of customer
activities, the
assurance
technology andtimeous
servicerefreshing
enhancements quality. of ageing infrastructure
SENTECH
and continuity invested
of business ensures
capital a high
primarily
operations levelinnovation,
for
has yielded of positive
customerresults
assurance
technology
in
and service
enhancements
both the internalquality.
and andSENTECH
continuity
external invested
of business capital primarily
operations
environments. for innovation,
hasincluded
These yielded positive technology enhancements
results in both
the establishment ofthe internal
a Solar and
and
Energy
continuity
external of business operations
environments. These has yielded
included the positive results in
establishment ofboth the internal
a Solar Energy and external
Solutions atenvironments.
the SENTECH
Solutions at the SENTECH STP and ensuring network availability. We achieved 99.87% weighted
These
STP and included
ensuring thenetwork
establishment of a Solar
availability. Energy Solutions
We achieved 99.87% at the SENTECH
weighted STP availability
network and ensuring network
during the
network availability during the past Medium-Term Expenditure Framework (MTEF) period 2016-
availability. We achieved 99.87% weighted network availability during the past Medium-Term Expenditure
past
2019 Medium-Term
across(MTEF) Expenditure Framework (MTEF) period 2016-2019 across all platforms:
all platforms:
Framework period 2016-2019 across all platforms:
Environmental Preservation
46
Businesses are increasingly required
SENTECH to INTEGRATED
consider operational
REPORTimpacts
2019/20on the environment and
and the effects of climate change on business operations. SENTECH is committed to global c
Environmental Preservation
Businesses are increasingly required to consider operational impacts on the environment and global climate and
the effects of climate change on business operations. SENTECH is committed to preserve the environment from
inadvertent harm and to continually improve and to implement progressive means to meet or exceed environmental
management legislation, regulations and other requirements. In this regard, SENTECH has implemented various
initiatives in relation to enhancing its Natural Capital. These include environmental preservation initiatives and
lowering carbon emissions.
The management of Technical infrastructure by its nature produces waste which could be harmful and hazardous to
the environment. Some of SENTECH’s communication infrastructure is situated in National Parks, farms, reserves, fresh
water supplies, etc. SENTECH is therefore required to act responsibly to minimize the impact of its operations on the
environment to ensure environmental preservation for future generations. In accordance with the Environmental
Management Act and Regulations of South Africa, SENTECH has established an Environmental Impact Management
Policy which informs the Environmental Sustainability Plan and continues to implement these during the year and
aligned its operations to ensure preservation of the environment.
The policy is aligned to the International Organization for Standardization’s ISO standards and seeks to position and
align SENTECH’s operations to minimize impact on the environment and comply with environmental conservation
objectives. The policy ensures a controlled environment that entrusts careful management of materials utilization
to avoid human exposure to health hazards, minimize pollution during operations and preserve the environment
for the future.
SENTECH internal processes:
• Waste Management
• Technology Disposal Management
• Hazardous Chemical Management; and
• Impact Assessment (EIA) compliance
The SENTECH position towards environmental management continues to improve and has enabled the organization
not to encounter any significant environmental incidents during the year.
Lowering carbon emission
In South Africa, mandatory reporting and the imminent carbon tax bill require entities to implement measures to
reduce their carbon footprint in a responsible and innovative manner. To ensure continuous improvement, SENTECH
established key research projects to further improve on its environmental preservation objectives to reduce its
carbon footprint by implementing green energy solutions and energy efficient technologies.
The new results showed a decrease of approximately 1900 tCO2e in the direct (scope1) emissions. The source of
these carbon emissions is from the combustion of diesel in diesel standby generators used to generate electricity
during grid failure, refrigeration gases utilized in air conditioning systems and lastly, fuel used in Company-owned
vehicles. The decrease is mainly attributed to the reduced number of “runhours” of the standby generators due to a
slight improvement and general power supply stability.
The indirect emissions are associated with the consumption of grid electricity and this is also the highest source of
emissions in the SENTECH greenhouse gas inventory. The increased availability of electricity would naturally see
an increase in the indirect emissions as is evident in the increase of approximately 12000 tCO2e. Energy efficient
initiatives such as the recently installed and commissioned solar plant at the SENTECH head office and plans to roll
this out to other Infrastructure sites will reduce the impact attributed to this emission.
Other measures implemented to reduce the carbon footprint include the installation of air conditioning systems
with ozone friendly refrigeration gases, motion sensing lighting systems at the SENTECH offices and Infrastructure
sites across the country and energy efficient technology replacements.
47
systems with ozone friendly refrigeration gases, motion sensing lighting systems at the SENTECH offices
and Infrastructure sites across the country and energy efficient technology replacements.
Below are SENTECH’s carbon footprint trends.
Below are SENTECH’s carbon footprint trends.
Sentech Carbon
SENTECH Emission
carbon trends
Emission trends
100,000
80,000
50,000
40,000
20,000
Direct (Scope1) Indirect (Scope2) Indirect (Scope3)

Emissions Emissions Emissions
FY 2018 tCO2e FY 2019 tCO2e FY 2020 tCO2e
Technology Development
Technology Development and Innovation
and Innovation
The SENTECHDigital
The SENTECH DigitalDisruption
Disruption Strategy
Strategy waswas setidentify
set to to identify
wherewhere the organisation
the organisation wasa from
was from a technology
technology
perspective, whereit itaimed
perspective, where aimed
to to
bebeandand
howhow it would
it would achieve
achieve digital
digital transformation,
transformation, from a people,
from a people, process process
and technology
and technologyperspective.
perspective.
Leveraging technology
Leveraging technologytotoprotect
protectand
andgrow
growcore revenues
core in the
revenues media
in the andand
media broadcasting space
broadcasting space
Digital Terrestrial Television (DTT)
Digital Terrestrial Television (DTT)
DTT is the main future platform for SENTECH’s broadcast signal distribution business and sustainability.
DTT is the main future platform for SENTECH’s broadcast signal distribution business and sustainability. SENTECH
SENTECH
continued continued to stabilise
to stabilise the the DTT
DTT platform platform
and served and
in an servedcapacity
advisory in an advisory capacity toofthe
to the Department Department
Communications
of Communications and Digital Technologies, as well as being appointed as the Head of
and Digital Technologies, as well as being appointed as the Head of the PMO for the Broadcasting Digitalthe PMO for the
Migration
Broadcasting
Programme to Digital
expediteMigration Programme
South Africa’s transitionto
toexpedite South
the already Africa’sDTT
established transition to the network.
infrastructure already established
DTT infrastructure network.
Digital Radio (DAB+)
Digital Radio (DAB+)
SENTECH identified
SENTECH identifiedDigital
DigitalRadio
Radioasasaafuture
futuregrowth
growthpath
pathforforradio
radiocontent
contentdistribution
distributionand
andhas
hasdeveloped
developeda
acomprehensive
comprehensive strategy for next-generation
strategy radio radio
for next-generation services. This evolutionary
services. technology
This evolutionary will not will
technology onlynot
position
only
SENTECH as a leader in digital content delivery but will also position South Africa as a country
position SENTECH as a leader in digital content delivery but will also position South Africa as a country on cutting edge
on
transitioning the radio sector. Digital radio not only maximises on the use of frequency spectrum but will also deliver
cutting edge transitioning the radio sector. Digital radio not only maximises on the use of frequency spec-
value add capability that can be exploited for sustainability of broadcasters and enable South Africa to experience
trum but will also deliver value add capability that can be exploited for sustainability of broadcasters and
next generation radio services of superior quality through Digital Radio. The Digital Radio pilot now has presence in
enable
GautengSouth Africa to
and Western experience next generation radio services of superior quality through Digital Radio.
Cape.
The Digital Radio pilot now has presence in Gauteng and Western Cape.
Over-The-Top (OTT)
Over-The-Top (OTT)
SENTECH alsoimplemented
SENTECH also implemented a live
a live streaming
streaming platform
platform for multiple
for multiple events,
events, such such as East
as GovTech, GovTech, East
London ICTLondon
Summit
and Summit
ICT others. and others.
48
Growing new revenues streams through broadband and ICT services
Established SENTECH as a key player in bridging the digital divide by providing services to remote and rural areas,
through broadband capabilities established such as Fixed Wireless, Satellite and TVWS arenas, servicing SA Connect
and other projects. Established SENTECH ICT capabilities such as WIFI and internet as a service to ensure that a
complete value proposition is available to service the customers.
Positioning SENTECH as the implementation arm for the PAN African Satellite
SENTECH was a key role-player and lead in establishing the Pan-African Satellite strategy, being established as the
Chair of the SADC for Satellite. SENTECH led the co-ordination, preparation and application for an orbital slot for the
Pan-African Satellite.
SENTECH as an enabler of 4IR technologies
SENTECH has developed and enabled IoT, E-Learning and E-Health as a service for public sector. A pilot for E-Learning
has been launched in KZN where a school has been enabled with devices and an online learning platform that is
based on the South African school curriculum. SENTECH’s IoT solutions were demonstrated for a public company in
East London. SENTECH’s IoT solution allows a number of use cases ranging from asset monitoring and management,
agriculture, water as well as energy management, having the ability to provision for smart cities, smart municipalities
and smart villages.
SENTECH’s E-Health solution enables rural and remote clinics and healthcare facilities to have access to diagnostic
tools to assist with monitoring and diagnosing patients, together with the ability to reach and collaborate with
specialists in other hospitals for more complex diagnosis and procedures.
SENTECH is seen to be leading 4IR technology developments as a state-owned entity, providing universal services
for all.
Information Security Management and Corporate Governance in ICT
SENTECH has embarked on implementing information security management within the organisation to ensure
that SENTECH operates at world-class standards from a security maturity perspective. SENTECH also established
its Corporate Governance in ICT framework that ensures compliance in terms of good management practice i.e.
Policies, Enterprise Architecture Controls, Disaster Recovery and Business Continuity Management and Assurance
Controls. IT Audits in the ICT governance in 2019/20 resulted in a clean audit, a first-time achievement in over 6 years.
Optimising and Modernising Technology Environments
SENTECH has made significant inroads into automation and digitalisation of the environment within the year with
developments spanning supply chain process automation, HR and performance management digitalisation, the
development and launch of multiple collaboration tools, and automated processes to foster collaboration, improve
productivity, ensure business continuity and optimise costs. A significant development was establishing SENTECH’s
improved web-portal and e-commerce platform.
Fostering expert technical skills and innovation
Fostering Innovation, SENTECH has defined Research and Innovation (R&I) as one of the critical success factors for the
Company’s long-term sustainability within the new digital convergence economy. To facilitate its R&I Programme,
SENTECH has established a research laboratory and developed an R&I roadmap, together with driving a culture of
innovation and entrepreneurship amongst the workforce.
49
Products Performance
Products Performance
The 2019/2020 product performance growth compared to the previous financial year grew by 5% with
revenueproduct
The 2019/2020 of R1,329 million compared
performance to R1,261
growth compared tomillion for FY2018/19
the previous financial year grew by 5% with
revenue of R1,329 million compared to R1,261 million for FY2018/19.
Product
Product Portfolio
Portfolio Performance
Performance (FY2018/19
(FY2018/19 vs FY2019/20)
vs FY2019/20)
TOTAL
SMART CARDS
INTERNATIONAL
Product Portfolio Performance
CONNECTIVITY
FACILITIES LEASING
Product Portfolio Performance (FY2018/19 vs FY2019/20)
DTH
Total
Smart Cards
SW RADIO
International
Product Portfolio
Connectivity
MW RADIO
Facilities Leasing
DTH
SW
FM Radio
RADIO
MW Radio
FM Radio
TELEVISION
Television
0 200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000
0 200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000
Facilities Connectivi Internatio Smart
Television FM Radio MW Radio SW Radio DTH Total
Leasing ty nal Cards
FY2018/19 650 994 328 441 9984 28149 149307 85 115 9088 0 0 1 261 078
FY2020/21 673 309 344 159 13 020 0 149 077 88 879 16000 2352 42 000 1 328 796
FY2018/19 R MillionFY2019/20
ContentContent and Multimedia

and Multimedia FY2018/19 FY2020/21
This portfolio still remains

This portfolio stillthe main source
remains the mainof revenue
sourceforofthe organisation.
revenue for theThe performanceThe
organisation. of the portfolio exceeded
performance of the portfo-
its budget by 10% (R114m) resulting in a year-on-year growth of 4%. The highlights
lio exceeded its budget by 10% (R114m) resulting in a year-on-year growth of 4%. The highlights for the portfolio was sale of 38for the
thousand smart
Content and
portfolio cards for
wasMultimediathe roll out of the Digital migration project. Furthermore, the development
sale of 38 thousand smart cards for the roll out of the Digital migration project. Furthermore, of content
streaming over satellite and internet was successful and will be commercialised during the next financial year.
the development of content streaming over satellite and internet was successful and will be commer-
Another This portfolio
highlight was still remains theofmain
the completion source DAB+
the second of revenue forinthe
trial site Capeorganisation.
Town with aThe performance
number of the
of FM customers
cialised
portfolio
participating.
during
DTTexceeded
theits
continues
next financial
tobudget
year.
by 10% (R114m)
be a concern
Another highlightyear-on-year
resulting in a due
for the organisation
wastothe completion
growth
the pace
of the second
of 4%. The
of migration
DAB+
of highlights
services fromfor
trial site
in
analogue. theCape Town
portfolio
SENTECH with a
wastosale
plans number
of 38
increase of FM
itsthousand customers
smart cards
efforts to accelerate participating.
thefor
DTTthe DTT continues
roll outthough
migration to
of theleading be
Digitalthea concern
migration project. organ-
for
implementations the
isation
of the DTT due tothe
installations
Furthermore, the pace high
to ensure
developmentof migration
quality and
of content ofcustomer
services satisfaction.
streaming from analogue.
over satellite and SENTECH
internet wasplans to increase
successful and willitsbeefforts to
accelerate the DTT migration though leading the implementations of the
commercialised during the next financial year. Another highlight was the completion of the second DAB+ DTT installations to ensure high
Managed quality
trial siteand
Infrastructurecustomer
in Cape Services
Town with satisfaction.
(MIS)
a number of FM customers participating. DTT continues to be a concern for the
organisation due to the pace of migration of services from analogue. SENTECH plans to increase its efforts
MIS continues
Managed to Infrastructure
to accelerate provide
the DTTgrowth opportunities
Services
migration for SENTECH
(MIS) leading
though with R83m revenue
the implementations forinstallations
of the DTT the 2019/20tofinancial
ensure highyear
resultingquality
in a year-to-year growth
and customer satisfaction. of 4%. Although the portfolio performance was 9% below budget this year, largely
due to MIS
the missed
continues revenue opportunities
to provide growthfor occupancy atfor
opportunities NASREC
SENTECH datacentre that required
with R83m revenue afor tier
the3 upgrade
2019/20 to financial
meet customer
Managed
year requirement,
Infrastructure
resulting the Data Centre
Services (MIS)
in a year-to-year and Disaster recovery centre proposals were submitted
growth of 4%. Although the portfolio performance was 9% below bud- to prospective
customers following their interest in Data centre services. Furthermore, there were delays in 3rd party contract
managementMIS continues to provide
service offerings duegrowth opportunities
to the conclusion for SENTECHbetween
of agreements with R83m revenue
SENTECH forthe
and theTraditional
2019/20 financial
Councils.
year resulting in a year-to-year growth of 4%.INTEGRATED
SENTECH Although the portfolio
REPORTperformance
2019/20 was 9% below budget 50
this year, this was largely due to the missed revenue opportunities for occupancy at NASREC datacentre as 50
it required a tier 3 upgradeSENTECH INTEGRATED
to meet customer REPORT
requirement. 2019/20Data Centre and Disaster recovery
Nonetheless
Good progress was made in facilitating the tripartite MOA between SENTECH, INFRACO and LIMPOPO CONNEXION
of which this is all in the final stages. The tripartite MOA opens opportunities for SENTECH broadband expansion,
facilities leasing and 3rd party support and maintenance offerings in the next financial year.
Connectivity
To date SENTECH has 100 active sites in EC, KZN and NC. During the 2019/2020FY, this portfolio was 68% (R34m) below
budget (R16m actual vs R50m budget) due to this being our first year of launching market business development
activities. We had a late start in the FY, slow market uptake, long sales cycle in government’s procurement processes;
the pending finalisation of the SOC tripartite MOA; and the delays in the allocation of SA Connect phase 1B sites.
The installation of the sites is however progressing well and it is expected to be completed at the end May 2020.
The major highlight was the launch of the SENTECH Connect brand as a service offering government packaged
solution for the Education, Health and Local government connectivity solutions. The Company has also made strides
in Limpopo with the initiation of a tripartite MOA between SENTECH, Broadband Infraco and Limpopo Connection
which is expected to be signed in the FY20/21. The MOU with the EL IDZ to enable the development of a use case of
5G-NR V2X Autonomous Vehicles is underway. Other provinces pursued include Gauteng and KZN.
International Business
The International business is our new offering for market expansion of current offerings to the African market. The
focus has been mainly on providing advisory services on integration of broadcasting infrastructure for a client in
Botswana. With the advent of Covid-19 and restrictions on international travel a new approach will be adopted on
driving international business.
Human Capital
The rapid pace at which the corporate landscape is changing requires an agile approach to human capital
management from attracting and retaining talent, to skills development and workplace mutability and employee
experience. The creation of this environment will enable a culture that encourages innovation and excellence. In
alignment with our human capital value creation strategy, this is how we performed during the year under review.
Talent Management
SENTECH is committed to be an employer of choice. Talent management is managed as an integrated approach

to enhance our efforts in attracting, developing and retaining the right talent that is fit for the future. As part of
the integrated talent management framework, executive succession management and career pathways have
been introduced to build a strong talent pipeline. Strategic partnerships with academic institutions have also been
established to provide academic assistance to engineering and postgraduate students.
Learning and Development
SENTECH is committed to promoting a learning culture that enables its employees to develop and grow to reach
their full potential. Staff benefited from a range of in-house and external learning and development opportunities,
including programs on technical and functional skills. We focused on developing digital transformation and business
orientated capabilities to enhance performance and employee engagement levels.
We have achieved a total of 88.3% against a business target of 85%. The business-training target for the 2019/20
financial year of 1573 (85%) training interventions was overachieved. In total 1634 training interventions were
delivered and an amount of R13 062 242,81 was spent on training of which R12 803 947,84 was spent on historically
disadvantaged groups. To enable employees to maximise their potential and get the most of their careers, ninety-
three bursaries were awarded to internal staff for the 2019/20 financial year. The total Skills Development (SD)
expenditure constituted 3.04% of the payroll expenditure.
51
get the most of their careers, ninety-three bursaries were awarded to internal staff for the 2019/20 finan-
get the most of their careers, ninety-three bursaries were awarded to internal staff for the 2019/20 finan-
cial year. The total
expenditure Skills Development
constituted 3.04% of the(SD) expenditure
payroll constituted
expenditure. 3.04%expenditure
The training of the payroll expenditure.
is as The
set out in tables
cial year. The total
expenditure Skills Development
constituted 3.04% of the(SD) expenditure
payroll expenditure. The training
constituted 3.04%expenditure is as
of the payroll set out in tables
expenditure. The
training
12 andexpenditure
13. is as set out in tables 12 and 13.
training
andexpenditure
12training
The is as
13.expenditure set
is as setout
outinintables
tables 12
12 and 13.
and 13.
Table 12:Table
Training
12: Expenditure
Training Expenditure
Table 12:Table
Table 12: Training
12:
Expenditure
e 13:Table
Training
13: Expenditure
Table 13:Table
Table 13: Training
13:
Expenditure
Table 13:Table
Training
13: Expenditure
Building SENTECH’S Skills Pipeline

ilding SENTECH’S Skills Pipeline
Building SENTECH’S Skills Pipeline
Investment in skills and accelerating employee’s personal development are essential components of
estmentInvestment
the skills in
inSENTECH skills
and and accelerating
accelerating
talent
employee’s personal
employee’s
management strategy.
personal development are essential
This is reflected in development
components
are essential
the talent and development agenda
of
components
that
the SENTECH talent management strategy. This is reflected in the talent and development agenda that
e SENTECH talent
entails management
fostering strategy.
strategic partnerships This
with theisUniversity
reflected in the talentUniversity
of Witwatersrand, and development agenda th
of Pretoria and t
entails fostering strategic partnerships with the University of Witwatersrand, University of Pretoria and
tails fostering strategic
University
University
of Cape partnerships
of Cape Town to providewith
Town to provide academic the University
academic assistance toofstudents
assistance to Witwatersrand,
students from University
from previously
previously of Pretoria a
disadvantaged
disadvantaged
backgrounds with tertiary level bursaries and mentoring in the field of electronic engineering and
iversity backgrounds
of Cape Town to provide
with tertiary academic
level bursaries andassistance
mentoring intothe students from previously
field of electronic engineeringdisadvantag
and
Information Technology engineering. We see the programme as crucial to growing our talent pipeline
ckgrounds Information
withfutureTechnology
tertiary engineering.
level bursaries We see the programmein as crucial to growing our talent pipeline
to meet core capabilities and driveand mentoring
our organisation theSENTECH
field of electronic engineering a
to meet future core capabilities and drive our organisation forward. SENTECH awarded bursaries
forward. awarded bursaries to
to 15
15
ormation Technology
students engineering.
to the value of R4.5m for We seeproject
tuition, the programme
work and research.as crucial to growing our talent pipel
students to the value of R4.5m for tuition, project work and research.
Further
meet future to enhancing
core capabilitiesthis pipeline and strengthening
and drive our organisation its bench strength,SENTECH
forward. SENTECH placed
awarded27 students
bursaries to
Further to enhancing this pipeline and strengthening its bench strength, SENTECH placed 27 students
on the internship programme.
dents toonthe
udents the value of R4.5m
internship programme. for tuition, project work and research.
rther to enhancing this pipeline and strengthening its bench strength, SENTECH placed 27 stude
the internship programme.
Performance Management 52
Performance Management SENTECH INTEGRATED REPORT 2019/20
Performance Management is a best practice approach that ties strategic goals and cascades down to the
Performance Management is a best practice approach that ties strategic goals and cascades down to the
employees’ personal work goals performance. SENTECH places increasing importance on managing and
rformance Management
developing employee performance holistically and regularly through giving feedback and taking
SENTECH INTEGRATED
developing employee performance holistically and REPORT 2019/20giving feedback and taking
regularly through
appropriate actions to ensure employee skilling.
appropriate actions to ensure employee skilling.
rformance Management is a best practice approach 52 that ties strategic goals and cascades down
52
mployees’ personal work goals performance. SENTECH places increasing importance on managin
52
veloping employee performance holistically
SENTECH andREPORT
INTEGRATED regularly through
2019/20 givingdeveloping
feedback empl
and
BuildingSENTECH’s
Building SENTECH’sSkills
SkillsPipeline
Pipeline
Investment
Investmentin in skills and and
skills accelerating employee’s
accelerating em-
personal development are essential components
ployee’s personal development are essential
of the SENTECHof
components talent management
the SENTECH strategy.
talent This
manage-
is reflected in the talent and development agenda
ment strategy. This is reflected in the talent
that entails fostering strategic partnerships with
and development agenda that entails foster-
the University of Witwatersrand, University of
ing strategic
Pretoria partnerships
and University of Capewith the to
Town University
provide
of Witwatersrand, University of Pretoria
academic assistance to students from previously and
University of Cape
disadvantaged Town to provide
backgrounds academic
with tertiary level
assistance
bursaries andtomentoring
studentsinfrom previously
the field dis-
of electronic
advantaged backgrounds
engineering and Information with tertiary level
Technology
engineering.
bursaries and Wementoring
see the programme as crucial
in the field to
of elec-
tronic engineering and Information Technology engineering.growing We see our
the talent pipelineastocrucial
programme meet tofuture core
growing
capabilities and drive our organisation forward. SENTECH awarded bursaries to 15 students to
our talent pipeline to meet future core capabilities and drive our organisation forward. SENTECH awarded the value of R4.5m
for tuition, to
bursaries project work and
15 students to research.
the valueFurther to for
of R4.5m enhancing
tuition,this pipeline
project workand
andstrengthening its bench
research. Further strength,
to enhancing
SENTECH placed 27 students on the internship programme.
this pipeline and strengthening its bench strength, SENTECH placed 27 students on the internship pro-
gramme.
Performance Management
PerformanceManagement
Performance Management is a best practice approach that ties strategic goals and cascades down to the employees’
personal work goals performance. SENTECH places increasing importance on managing and developing employee
Performanceholistically
performance Management is a bestthrough
and regularly practice approach
giving thatand
feedback tiestaking
strategic goals and
appropriate cascades
actions down
to ensure to the-
employee
skilling.
developing employee performance holistically and regularly through giving feedback and taking appro-
Apriate
key principle underpinning
actions to SENTECH’s
ensure employee approach to managing performance is ensuring all employees sign
skilling.
performance agreements at the beginning of the financial year and receive regular performance feedback, both
informal and formal.
A key principle In total 100%
underpinning of employees
SENTECH’s signed
approach performanceperformance
to managing agreements is
in ensuring
both management and
all employees
bargaining levels.
sign performance agreements at the beginning of the financial year and receive regular performance feed-
back, both informal and formal. In total 100% of employees signed performance agreements in both man-
Rewards and recognition
s of agement and bargaining levels.
Our remuneration policy supports our performance driven culture and our total remuneration is commercially
hat
that Rewards and
competitive inrecognition
the relevant markets within which we operate. Reward and recognition play an integral role in the
and successful delivery of SENTECH’s strategic objectives.SENTECH has a short-term incentive scheme that is linked to
Ourindividual’s
the remuneration policy supports
performance ourand
contribution performance driven
organisational culture and our total remuneration is com-
performance.
ged mercially competitive in the relevant markets within which we operate. Reward and recognition play an
and Culture
integralChange
role in the successful delivery of SENTECH’s strategic objectives.SENTECH has a short-term incen-
tive scheme that is linked to the individual’s performance contribution and organisational performance.
line As part of igniting innovation and creating a winning culture within the organisation, the Innovation Challenge
Programme was launched to encourage innovative ideas from various teams for revenue generating and operational
o 15 Culture Change
efficiency ideas. A total of 18 teams participated in the Innovation Challenge programme. There were three top ideas
that emanated from this challenge that the business evaluated as possibilities to be pursued in future.
As part of igniting innovation and creating a winning culture within the organisation, the Innovation Chal-
ents lenge Programme
Occupational Healthwas
and launched
Safety to encourage innovative ideas from various teams for revenue generating
and operational efficiency ideas. A total of 18 teams participated in the Innovation Challenge programme.
There
We were three
continue topforideas
to strive zero that emanated
fatalities fromin
and injuries this
thechallenge
workplace.that
Ourthe business
goal evaluated
is to eliminate as possibilities
incidents, minimise
to be
risk, pursued in
responsibly future.environmental impacts and enable excellence in operations and business performance.
manage
The TRIR levels (Total Recordable Injury Rate) are closely monitored and measured using a safety performance
measuring toolHealth
Occupational that measures the number of recordable injuries, multiplied by 200 000 as a constant number and
and Safety
divided by the number of man-hours accumulated per month.
We continue to strive for zero fatalities and injuries in the workplace. Our goal is to eliminate incidents, mi-
52 SENTECH has managed to keep the TRIR levels below the TRIR limit of 1% through awareness programmes and
training. The total recordable injury rate for the 2019/20 fiscal year was 0.1465%, this is below the TRIR limit of 1%.
performance. The TRIR levels (Total Recordable Injury Rate) are closely monitored and measured using a
to thesafety performance measuring tool that measures the number of recordable injuries, multiplied by 200
000 as a constant number and divided by the number of man-hours accumulated per month.
ng and
53
taking SENTECH INTEGRATED REPORT 2019/20
Employment Equity
Employment Equity is a strategic imperative and underpins the successful implementation of the SENTECH
Transformation
strategy. SENTECH is committed to embracing a culture of inclusion, empowering women to increase their
Transformation is a strategicinimperative
level of representation and underpins
senior positions the successful
and advancement implementation
of people of the SENTECH
with disabilities. strategy.
Our objective is to
SENTECH is committed to embracing a culture of inclusion, empowering women to increase
achieve equal representation across all levels within SENTECH through a robust plan that promotes equity their level of
representation in senior positions and advancement of people with disabilities. Our objective is to achieve equal
in the workplace, equal opportunities in employment, skills development and equitable representation in
representation across all levels within SENTECH through a robust plan that promotes equity in the workplace,
all occupational levels in the organisation. As at the 31 March 2020, SENTECH had 506 permanent employ-
equal opportunities in employment, skills development and equitable representation in all occupational levels in
ees as set out in table 14. The current employment equity statistics reflect that 88% of staff in the organisa-
the organisation. As at the 31 March 2020, SENTECH had 506 permanent employees as set out in table 14. The
tionemployment
current are black and 34%statistics
equity female. At top management
reflect levels,
that 88% of staff in the100% are blackare
organisation and 40%and
black female; 94% ofAt
34% female. senior
top
management are black and 33% are female, whilst 86% of specialists and middle management
management levels, 100% are black and 40% female; 94% of senior management are black and 33% are female, levels are
black
whilst 86%and 47% female.
of specialists andThe ratemanagement
middle of people with disability
levels in and
are black the 47%
company is The
female. 1,19%
rateofofthe totalwith
people staffdisability
comple-
ment. Due to the low employee turnover rate and moratorium on recruitment the targets
in the company is 1,19% of the total staff complement. Due to the low employee turnover rate and moratorium for some of the
on
designated
recruitment groupsfor
the targets at some
certain
of levels were not groups
the designated met. at certain levels were not met.

14: Employment EquityEquity
Employment Equity Report FY 2019/2020
Male Female
Employee Employee
Occupation Top
African Coloured Indian White with African Coloured Indian White with Total
Levels Management
disability disability
Current 4 1 1 0 0 3 0 1 0 0 10
Senior Management
Current 9 0 0 1 0 8 0 0 0 0 18
Professionally qualified and Experienced Specialists and Mid - Management
Current 44 5 2 14 0 20 2 1 4 1 92
Skilled technical & Academically qualified workers, Junior Management, Supervisors Foremen and Superintendents
Current 121 12 9 35 2 101 4 3 5 0 290
Semi-skilled & discretionary decision making
Current 20 1 0 0 0 20 5 2 3 2 51
Unskilled & defined Decision making
Current 36 6 0 0 0 3 0 0 0 0 45
TOTAL
234 25 12 50 2 155 11 7 12 3 506
PERMANENT
54
Personnel Remuneration by Salary Band
Personnel Remunerationby
Personnel Remuneration bySalary
SalaryBand
Band
SENTECH had 506 permanent employees as at 31 March 2020. The average personnel remuneration total
cost
SENTECH
SENTECH hadper
had employee
506
506 is R741
permanent
permanent , 222.65as
employees
employees ofat
which topMarch
management
as31atMarch
31 2020.2020. accounts
The for 6%
average
The average asremuneration
set outremuneration
personnel
personnel on table 15: costtotal
total per
cost per employee
employee is R741,
is R741, 222.65 222.65
of which topofmanagement
which top management accounts
accounts for 6% foron6%
as set out as set
table 15: out on table 15:
Table 15: Personnel Remuneration
Table15:
Table 15:Personnel
PersonnelRemuneration
Remuneration
R21,001,820.73 6% 51 R 411,800.41
Semi-skilled
R14,545,199.65 4% 45 R323,226.66
Unskilled
100% 506 R741,222.65

Total
R375,058,662.85
Employment and
Employment and Vacancies
Vacancies
Employment and and
Employment Vacancies
Vacancies
Table 16 sets out SENTECH’s employee turnover and the recruitment
TableTable
16 sets out out
SENTECH’s employee turnover 5454 profile:
16 sets SENTECH’s employee turnoverand
andthe
the recruitment profile:
recruitment profile:
Table 16Employee
Table 16: sets outTurnover
SENTECH’s employee Profile
and Recruitment turnover and the recruitment profile:
TableTable
16: Employee Turnover
16: Employee and Recruitment
Turnover Profile
and Recruitment Profile
Table 16: Employee Turnover and Recruitment Profile
TableLevel
16: Employee Turnover
2018/20 and Recruitment
Approved Planned Profile
2019/2020 Vacancies 2019/2020 Vacancy Rate
19 No. of Posts to be filled No. of Employees Vacancies on Planned
Employees Planned To Posts
be Filled
Top
11 11 11 10 1 1 9%
Management
Senior
20 23 21 18 5 3 13%
Management
Professionals 100 121 117 92 29 25 21%
Skilled
technical &
301 338 312 290 48 22 7%
Academically
qualified
Semi skilled 53 57 51 51 6 0 0%
Unskilled 46 52 45 45 7 0 0%
Total 531 602 557 506 96 51 8%
Employment Change
Table 17 sets out SENTECH’s employment profile as at 31 March 2020. The Company had 51 planned vacancies
Employment Change
for the 2019/20 financial year and 16 positions were identified as critical positions. There were no appointments
for the period under review due to the moratorium on recruitment.
Table 17 sets out SENTECH’s employment profile as at 31 March 2020. The Company had 51 planned vacancies
for the 2019/20 financial year and 16 positions were identified as critical positions. There were no appointments
Table 17: Employment Profile
for the period under review due to the moratorium on recruitment.
55 SENTECH INTEGRATED REPORT 2019/20 55
Table 17: Employment Profile SENTECH INTEGRATED REPORT 2019/20
Salary band Employment at beginning Appointments Terminations Employment at end of
Employment
Employment Change
Change
Employment
Employment Change
Change
Employment Change
Table
Table 1717 setsout
sets outSENTECH’s
SENTECH’s employment
employment profile as at
profile as31
at March
31 March2020.2020.
The Company had 51 had
The Company planned vacanciesva-
51 planned
Table
Table
Table 17 17
17sets sets
sets out out
out SENTECH’s
SENTECH’s
SENTECH’s employment
employment
employment profile as
profile
profile as at at
as
3131
at March
31 March
March 2020.
2020. The
2020.
The Company had51
The Company
Company had 51planned
planned
had vacanciesva-
51 planned
vacancies for
for the
cancies for2019/20 financialfinancial
the 2019/20 year andyear
16 positions
and 16 were identified
positions were asidentified
critical positions. There
as critical were no appointments
positions. There were no
the for
cancies the
2019/202019/20
for the
financialfinancial
2019/20
year andyear
16and
financial 16 positions
year and
positions 16
were were identified
positions
identified aswere asidentified
critical
critical positions.
as
positions. There
critical
There were no appointments
positions.
were no There
appointmentswere
for no
the
for the periodfor
appointments under
thereview
perioddue to the
under moratorium
review due toontherecruitment.
moratorium on recruitment.
for the
appointments
period period
under under
for
review the
duereview
to thedue
period to the
under moratorium
review
moratorium ondue toonthe
recruitment.
recruitment. moratorium on recruitment.
Table
Table 17:Employment
Table
17: Employment
17: Profile
Employment Profile
Profile
Table 17:17:
Table Employment Profile
Employment Profile
8
8
Reason for
Reason for Employee’sLeaving
Leaving
Reason forEmployee’s
Employee’s Leaving
Reason turnover
SENTECH’s
SENTECH’s for Employee’s
turnover rate
rate Leaving
forfor 2019/20
2019/20 waswas 4,74%,
4,74%, comprising
comprising 54% voluntary
54% voluntary (resignations
(resignations and abscond-
and abscondment) and
Reason for
SENTECH’s Employee’s
turnover Leaving
rate for 2019/20 was 4,74%, comprising 54% voluntary (resignations and abscond-
ment)
46% and
SENTECH’s 46%
involuntary involuntary
terminations
turnover terminations
(retirement,
rate forterminations (retirement,
dismissals
2019/20 was 4,74%, and dismissals
death)
comprising as setand
out
54% voluntarydeath)
in table as
18.set
(resignations out in
and in table 18.
abscondment)
ment) and 46%
SENTECH’s involuntary
turnover (retirement,
rate for 2019/20 was 4,74%, dismissals
comprising and death)
54% voluntary as set out
(resignations table 18. and
and abscondment) and
46% involuntary terminations (retirement, dismissals and death) as set out in table 18.
Table
46%
Table 18:
18: Turnover
Turnover
involuntary
18: Turnover Rate
Rate
terminations
Rate (retirement, dismissals and death) as set out in table 18.
Table 18:
18:Turnover
TurnoverRate
Rate
Table 18: Turnover Rate
Table 18: Turnover Rate
55
55
Reasons for Employees Leaving

Reasons for
Employee
Employee Employees Leaving
Relations
Relations
Employee Relations
SENTECH
SENTECHisiscommitted
committedtotobuilding
buildinga asustainable
sustainablerelationship
relationship with
withlabour.
labour.A healthy relationship
A healthy relationshipandand
partnership
part-
SENTECH
amongst is committed
management, to building
employees a sustainable
and labour relationship
is labour
crucial for with labour.
the achievement A healthy relationship
of SENTECH’s and part-
strategic objectives.
Employee
nership Relations
amongst management, employees and is crucial for the achievement of SENTECH’s strategic
Employee
nership
SENTECH Relations
amongst
objectives.will
management,
alwayswill
SENTECH endeavour employees and labour
to ensuretoeffective
always endeavour
is crucial for
and accessible
ensure effective
the achievement
communication
and accessible
of SENTECH’s
amongst
communication
strategic
employees,
amongst
objectives.
SENTECH
management SENTECH
is and will Employee
committed
labour. always
to endeavour
building a
Relations to ensure
sustainable effective
relationship
continuously engagesand
withaccessible
labour.
organised Acommunication
healthy
labour and amongst
relationship
management and
toman-
have
employees,
SENTECH ismanagement
committed and
to labour.aEmployee
building sustainable Relations continuously
relationship with engages
labour. A organised
healthy labour and
relationship and
employees,
consistent management
application and labour.
ofmanagement,
legislation, Employee
policies,
of rules Relations
and continuously engages organised labour and man-
partnership
partnership
agement
agement to amongst
amongst
have
to have management,
consistent
consistent employees
employees
application
application andregulations
and labour
legislation,
of legislation, labour
is crucial
policies,
policies, withinand
is crucial theregulations
for workplace.
the
for regulations
rules and the achievement
rules achievement
withinofthewithinofthe
SENTECH’s
workplace.SENTECH’s
workplace.
partnership
agement amongst
to have management,
consistent employees
application and labour
of legislation, is crucial
policies, for regulations
rules and the achievement
withinofthe
SENTECH’s
workplace.
strategic objectives. SENTECH will always endeavour to ensure effective and accessible communication
strategic objectives. SENTECH will always endeavour to ensure effective and accessible communication
amongst employees, management and labour. Employee Relations continuously engages organised
amongst employees, management and labour. Employee Relations continuously engages organised
labour and management to have consistent application of legislation, policies, rules and regulations
labour and management to have consistent application of legislation, policies, rules and regulations
within the workplace.
within the workplace.
MANAGING RISKS AND

MANAGING RISKS AND OPPORTUNITIES
OPPORTUNITIES
The Enterprise Risk Management strategy aims to ensure that the entity maintains sound risk
The Enterprise Risk Management strategy aims to ensure that the entity maintains sound risk
management practices that support the implementation of the overall organisational strategy. The Board
management practices that support the implementation of the overall organisational strategy. The Board
is accountable for risk management to ensure achievement of organizational objectives. The oversight for
is accountable for risk management to ensure achievement of organizational objectives. The oversight for
risk management has been delegated to the Board’s Audit and Risk Committee. The responsibility for the
risk management has been delegated to the Board’s Audit and Risk Committee. The responsibility for the
implementation and monitoring of risks has been delegated by the Board through the Audit and Risk
implementation and monitoring of risks has been delegated by the Board through the Audit and Risk
Committee to Management. All risk management activities are monitored by the Board through its
Committee
committees toon Management. All inrisk
a quarterly basis linemanagement activities
with the approved Riskare monitored
Appetite by the Board
and Tolerance levelsthrough
as well its
as
committees on a quarterly basisSENTECH
in line with the approved Risk Appetite and Tolerance levels as well as
56
the Risk Management Strategy. SENTECH INTEGRATED
INTEGRATED
REPORT 2019/20
REPORT 2019/20 56
56
the Risk Management Strategy.
Effective risk management is fundamental to the business activities and ensures that organizational
MANAGING RISKS AND OPPORTUNITIES

Managing Risks and Opportunities
The Enterprise Risk Management strategy aims to ensure that the entity maintains sound risk management
practices that support the implementation of the overall organisational strategy. The Board is accountable for risk
management to ensure achievement of organizational objectives. The oversight for risk management has been
delegated to the Board’s Audit and Risk Committee. The responsibility for the implementation and monitoring of
risks has been delegated by the Board through the Audit and Risk Committee to Management. All risk management
activities are monitored by the Board through its committees on a quarterly basis in line with the approved Risk
Appetite and Tolerance levels as well as the Risk Management Strategy.
Effective risk management is fundamental to the business activities and ensures that organizational objectives
are achieved. It is an integral part of both effective corporate governance and performance management through
ensuring that the risk culture, processes and structures are in place and supported. During this performance period,
risks were managed on an enterprise-wide basis. Managing potential risks allows SENTECH to be more innovative
in the manner in which it delivers its products and services, and as such risk management has been built into
management processes to deliver continuous improvement. By identifying and proactively addressing risks and
opportunities, the entity was able to sustain value for its stakeholders while protecting its business operations,
the wellbeing of its employees and its reputation. Since this is a continuous process, new emerging risks and
opportunities are identified and monitored as and when they arise.
The recorded performance on achievement of 100% of SENTECH’s pre-determined objectives and the eight
consecutive clean audit attests to the rigour and robustness of management of risk by the Organisation. Significant
strides have been made in embedding Risk Management within SENTECH and plans are in place to improve the
process further going forward.
58
Managing
Managing our
ourtop Strategic
topStrategic Risks
Risks
The
The strategic risks
strategicrisks have
have been
been identified
identified and and managed
managed usingusing risk management
risk management frameworks
frameworks and they and
havethey
beenhave been categorised
categorised and reportedand reported
according according
to the to the
three categories.
There were 15 strategic risks identified at the begging of the financial year of which 8 risks were rated residually high. At the end of the year there were
three categories. There were 15 strategic risks identified at the begging of the financial year of which 8 risks were rated residually high. At the end of the 5 risks that remained
residually
year therehigh.
wereAdditional risks
5 risks that and uncertainties
remained residually constantly
arehigh. identified
Additional risksand
andmonitored. This report
uncertainties presents the
are constantly top 10 risks
identified and that are detailed
monitored. Thison the diagram
report presentsand table
the
19 below:
top 10 risks that are detailed on the diagram and table 19 below:
10
8 7 1
Capabilities
and 9 3
Platforms
Risk Profiles Financial
2
6
5 4
Legal &
Regulatory
Low Medium High
Table 19: Top Strategic Risks
57
Loss of intellectual property rights ▪
60
60
SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
2019/20
▪
▪
▪
▪
▪
▪
▪▪
▪
▪
Fraud Prevention and Risk

Fraud Prevention Plan was developed during the corporate planning process in alignment with the PFMA
Fraud Prevention
requirements to havePlana was
Risk developed
Management during the corporate
Plan that includes a planning processPlan.
Fraud Prevention in alignment with the
These include PFMA
awareness
requirements to have a Risk Management Plan that includes a Fraud▪ Prevention Plan. These include aware-
campaigns that are conducted on a regular basis. A fraud risk assessment was also conducted to ensure that all
ness campaigns
fraud that are
risks are identified andconducted
managed in online
a regular
with thebasis. A fraud commitment
organization’s risk assessment wastolerance
to zero also conducted to
to fraud and
58
ensure that all fraud risks are identified and managed in line with the organization’s commitment
corruption as stated in the risk appetite statement. There was a total of 13 fraud risks identified of which 2 were to zero-
tolerance
rated high.to fraudthe
During andyear
corruption
(2019/20)asthere
stated in the
were five risk
fraudappetite statement.
incidents that were There was
reported a total
and of 13 fraud
investigated. risks
Three of
identified of which 2 were rated high. During the year (2019-20) there were five fraud incidents that were
the investigations were closed and appropriate steps were taken to address the issues. The other two incidents are
still under and
reported investigation.
investigated. Three of the investigations were closed ▪ and appropriate steps were taken to
address the issues. The other two incidents are still under investigation.
▪
The recorded performance on achievement of 100% of SENTECH’s pre-determined objectives and the seven
consecutive clean audit attests to the rigour and robustness of management of risk by the Organisation. Significant
The recorded performance on achievement of 100% of SENTECH’s ▪ pre-determined objectives and the
strides have been made in embedding Risk Management within the SENTECH and plans are in place to improve the
seven consecutive clean audit attests to the rigour and robustness of management of risk by the Organisa-
process further going forward.
tion. Significant strides have been made in embedding Risk Management within the SENTECH and plans
are in place to improve the process further going forward.
▪
58

GOVERNING EFFECTIVELY

SENTECH is committed to the highest standards of governance, ethics and integrity regarding its corpo-
rate governance as more than a set of policies, procedures, structures, rules and frameworks. It entails
abiding by the governance principles and structures enabling SENTECH to facilitate and foster healthy
Commitment
relationshipstoamongst
Good Governance
the Board, the Shareholder Representative, stakeholders and employees. We be-
lieve that good governance contributes to living our values through enhanced accountability, strong risk
SENTECH is committed to the highest standards of governance, ethics and integrity regarding its corporate
and performance management, transparency and effective leadership. Good governance is the vehicle
governance as more than a set of policies, procedures, structures, rules and frameworks. It entails abiding by the
towards business
governance integrity,
principles sound business
and structures enablingpractices
SENTECH and the creation
to facilitate of value
and foster for various
healthy stakeholders.
relationships amongst We
the
are constantly
Board, reviewing
the Shareholder our governance
Representative, practices
stakeholders andand processes
employees. We to ensure
believe thatthat
goodwegovernance
act in the contributes
best inter-
ests
to of our
living ourstakeholders.
values throughThe Board has
enhanced ultimate accountability
accountability, strong risk andand responsibility
performance for the performance
management, transparency and
and
affairs of SENTECH and ensures that SENTECH adheres to high standards of ethical behaviour.
effective leadership. Good governance is the vehicle towards business integrity, sound business practices and the
creation of value for various stakeholders. We are constantly reviewing our governance practices and processes to
ensure that embraces
The Board we act in the best
the interests
benefits ofofdiversity
our stakeholders. The Boardthe
as this enhances hasrange
ultimate
of accountability
perspectives of andDirectors.
responsibility
The
for the performance
Board subscribes to and affairs of SENTECH
governance and ensures
principles that SENTECH
and practices adheres
to ensure to highof
creation standards
value inofaethical
manner behaviour.
that is
sustainable for SENTECH’s stakeholders. The Board confirms and is happy that there is a right balance of
The
skills,Board embraces
experience theindependence
and benefits of diversity
to makeas this enhances
valuable the range oftoperspectives
contributions SENTECH’s of Directors. The Board
business.Governance
subscribes to governance principles and practices to ensure creation of value in a manner that is sustainable for
at SENTECH entails a culture committed to sound processes and procedures, that go beyond legal compli-
SENTECH’s stakeholders. The Board confirms and is happy that there is a right balance of skills, experience and
independence to make valuable contributions to SENTECH’s business. Governance at SENTECH entails a culture
committed to sound processes and procedures, that go beyond legal compliance and ensures sustainability, long
Boarda of
after lawDirectors
and its iterations have been implemented.
In terms
Board of the SENTECH Act, the Board shall consist of three Executive Directors and at least four Non-
of Directors
Executive Directors (NEDs), who are all appointed by the Minister. NEDs and Executive Directors are ap-
In terms of
pointed forthe SENTECH and
three-year Act, five-year
the Board terms,
shall consist of three The
respectively. Executive
BoardDirectors
is led byand
an at least four Non-Executive
independent NED and is
Directors (NEDs), who are all appointed by the Minister. NEDs and Executive Directors
comprised of a majority of independent NEDs. The Chief Executive Officer (CEO), Chief Financial are appointed forOfficer
three-
year and five-year terms, respectively. The Board is led by an independent NED and is comprised
(CFO) and Chief Operating Officer (COO) are the Executive Directors. The key governance roles and respon- of a majority of
independent NEDs.
sibilities of the The are
Board Chief Executive
outlined asOfficer
follows:(CEO), Chief Financial Officer (CFO) and Chief Operating Officer (COO)
are the Executive Directors. The key governance roles and responsibilities of the Board are outlined as follows:
Chairperson
a. Responsible for setting the Board Agenda, ensuring there is sufficient time available for discussion of all items.
b. Encourages open and honest debate among all Board members.
c. Leads and manages the dynamics of the Board, providing direction and focus.
d. Ensures that the Board sets the strategy of the Company and assists in monitoring progress towards achieving the
strategy.
e. Serves as the primary interface with stakeholders on behalf of the Board.
NEDs
a. Have diverse experience, background and skills, and they bring unique perspectives to the Boardroom to facilitate
constructive debate on proposals.
b. They contribute business acumen, independent judgment and experience on various issues which include strategy,
ethical leadership, governance, transformation and performance management, against agreed goals.
c. Ensure the effectiveness of internal controls and the integrity of financial reporting.
d. Monitor executive performance.
e. Have unrestricted access to the Company’s information, documents, records and property in the interest of fulfilling their
responsibilities as independent NEDs.
63
Executive Directors
CEO CFO COO
a. Bears ultimate responsibility for all a. Leads and manages the Company’s a. Leads and manages the Company’s
Executive Directors
management functions. finance function. Technology and Operations.
b. Responsible for CEO managing and b. Provides the Board
CFOwith updates on b. Provides the Board
COOwith updates on
leading the Company within the the Company’s financial performance. Technology Strategy implementation
a. authorities
Bears ultimatedelegated by the Board.
responsibility for all a. Leads and manages the Company’s a. and Operational
Leads Performance
and manages the Company’s
c. management
Ensures that the Board receives
functions. finance function. Technology and Operations.
b. information
Responsiblethat is accurate,and
for managing timely b. Provides the Board with updates on b. Provides the Board with updates on
and clearthe
leading to Company
enable thewithin
Directors
the to the Company’s financial performance. Technology Strategy implementation
perform their
authorities duties effectively.
delegated by the Board. and Operational Performance.
c. Ensures that the Board receives
Company
information Secretary
that is accurate, timely
a. Responsible for the the
and clear to enable flowDirectors to
of information to the Board and its Committees and for ensuring compliance with Board
perform their
procedures. duties effectively.
b. Responsible for minutes of all Board and Committee meetings to record the deliberations and decisions taken therein.
c. Company Secretary
Ensures that the Board complies with all relevant legal prescripts.
d. Provides guidance
a. Responsible for theto theofBoard
flow in discharging
information its fiduciary
to the Board and itsduties.
Committees and for ensuring compliance with Board
procedures.
b. Responsible for minutes of all Board and Committee meetings to record the deliberations and decisions taken therein.
c. Ensures that the Board complies with all relevant legal prescripts.
The responsibilities,
d. Provides guidance toattendance of meetings
the Board in discharging and matters
its fiduciary duties. considered during the financial year are set out
in the Board’s Report. Biographical details of the Directors are set out whilst the responsibilities, atten-
The responsibilities,
dance of meetings attendance
and mattersofconsidered
meetings and matters
during the considered during
financial year the out
are set financial
in theyear are set
Board’s out in the
Report.
Board’s Report. Biographical details of the Directors are set out whilst the responsibilities, attendance of meetings
The matters
and responsibilities,
considered attendance
during the of meetings
financial year and matters
are set considered
out in the during the financial year are set out
Board’s Report.
Board Sub-Committees
in the Board’s Report. Biographical details of the Directors are set out whilst the responsibilities, atten-
danceSub-Committees
Board of meetings and matters considered during the financial year are set out in the Board’s Report.
The Board Committees facilitate the discharge of responsibilities and provide in-depth focus, oversight
andBoard
The guidance on specific
Committees areas,
facilitate theand reports
discharge of to the Board through
responsibilities theirin-depth
and provide respective Chairpersons.
focus, oversight and Commit-
guidance
Board Sub-Committees
tee Chairpersons submit written reports to the Board. To this end, the Board has established
on specific areas, and reports to the Board through their respective Chairpersons. Committee Chairpersons five submit
Board
Committees
written reportsastoset
theout in figure
Board. To thisbelow.
end,
The Board Committees facilitate the the Board has
discharge ofestablished five Board
responsibilities andCommittees as set out
provide in-depth in figure
focus, below.
oversight
and guidance on specific areas, and reports to the Board through their respective Chairpersons. Commit-
tee Chairpersons submit written reports to the Board. To this end, the Board has established five Board
Committees as set out in figure below.
BOARD
BOARD
Human Resources Technology, Sales

Audit and Risk Nominations and Social and Ethics and Regulatory Investment
Committee Remuneration Committee Coordination Committee
Committee Committee
Human Resources Technology, Sales
Audit and Risk Nominations and Social and Ethics and Regulatory Investment
Committee
The Board and its Committees Remuneration Commitee Coordination Commitee
Committee Committee
The Board and its Committees
64
SENTECH INTEGRATED
SENTECH INTEGRATED REPORT
REPORT 2019/20
2019/20 64
Board Continuity Programme
The Board Continuity Programme addresses the skills, experience and other qualities required for the effective
functioning of the Board. It sets out the induction and ongoing training of Directors, and evaluation of the Board
performance. Some NEDs attended international conferences to enhance the Board’s awareness on latest technology
developments.
Board and Committees Appraisal
The appraisal of the Board and its Committees was facilitated by an independent Service provider to ensure
objectivity and independence of the process. It was an independently facilitated self-appraisal process in respect
of individual Directors on the performance of the Board as a whole, the Audit and Risk Committee and Individual
Directors. The appraisal was aligned to the principles of King IV and focused on the following areas:
• Governing Body Composition;

• Governing Roles and Responsibilities;
• Governing Body Committees;
• Governing Body Culture; and
• Governing Body Role Players.
The Board received an overall score of 5.0 out 6.0 from its Board members and this is rated as good. The Board scored
11% higher than the Public Sector benchmark. The Board is still perceived to be discharging its governance duties
adequately although there has been an overall decline over the past three years. The Board did well in governance
areas covering the discharge of the duties and responsibilities of the Board, the functioning of Board Committees and
the key role players in the Board. The appraisal outcome noted that the rotation, succession planning, nomination
and process of appointment of board members received “satisfactory” scores. Overall the relationship between the
Executives and Non-Executive Directors appeared to be positive. Further thereto the Leadership of the Chairperson
and the relationship between the CEO and the Executives were well received and rated. At the time of the appraisal,
a new Company Secretary had just been appointed and had been in office for approximately six (6) months and her
performance was found to be adequate.
Approach to Compliance
Adherence and compliance to applicable laws and regulations is a responsibility of the Board. The Company has
reviewed the Compliance Policy and Framework, and the legal universe. Compliance Reports were submitted to
the ARC and Social and Ethics Committees. Various compliance monitoring reviews were undertaken at selected
divisions to ascertain if business activities were conducted in compliance with relevant regulatory requirements,
internal policies and procedures. This process has assisted the Company in identifying relevant areas of improvement.
Ethics
King IV defines corporate governance as the exercise of ethical and effective leadership by the governing body
towards the achievement of an ethical culture, good performance, effective control and legitimacy. The Board is
responsible for setting the tone and ethics and has delegated oversight of the management of the Company’s ethics
to the Social and Ethics Committee. The Code of Business Conduct and Ethics Policy has been reviewed. The Code
articulates standards expected from Directors, employees and service providers.
All Company Directors and managers have committed to upholding the Company’s ethics by signing an ethics
pledge. The Company’s Whistleblowing Policy provides employees with the anonymous hotline to report unethical
conduct. The anonymous hotline is administered independently by an independent company that submits reports
which are investigated by Internal Audit. A preliminary investigation is conducted to establish whether there is a
prima facie case.
Compliance with King IV
The Board has embraced the King Report on Governance for South Africa 2016 (King IV). Adopting King IV is a
commitment to the philosophy of stakeholder inclusivity, corporate citizenship and protecting the value that we
create. SENTECH’s existing governance framework and culture provide a solid foundation for the implementation of
65
King IV. By applying King IV, we ensure that principles are applied with a focus on achievement of the four corporate
outcomes, namely, ethical culture, good performance, effective control and legitimacy. The Board has provided
effective leadership and this is demonstrated by SENTECH’s achievement of its strategic objectives and positive
outcomes. The Board is satisfied with the way the recommended principles in King IV have been applied and has put
alternative measures in place, where necessary.
The Board provides leadership and strategic guidance to safeguard Shareholder value creation within a framework
of prudent and effective controls. This enables risk to be assessed and managed to ensure long-term sustainable
development and growth. The Board has ultimate accountability and responsibility for the performance and affairs
of SENTECH and ensures that SENTECH adheres to high standards of ethical behaviour. Directors owe a fiduciary duty
to the Company both under common law and legislation, namely, PFMA and Companies Act, and are accountable
to the Shareholder, represented by the Minister of Communications and Digital Technologies. Directors are also
responsible, within the confines of corporate law and legislation, to other stakeholders of the Company. Directors
are required to exercise due care, skill and the utmost good faith in the performance of their duties.
The Board reviews its governance structures and processes to ensure they support effective and ethical leadership,
good corporate citizenship and sustainability. Policies are in place to ensure adherence to essential requirements
and governance standards. The Board is responsible for the periodic review and approval of the delegated authority.
The Board is also governed by a Charter, which provides a concise overview of the role, powers, functions, duties and
responsibilities of the Directors, both collectively and individually. The Board Charter was reviewed and approved
by the Board during the reporting period. The Board is mindful of its responsibility to ensure that there remains
an appropriate balance of skills and experience on the Board. To this end, whenever this balance was affected, the
Board made recommendations to the honourable Minister for the appointment of Non-Executive Directors that
would restore the balance of the skills and experience within the Board. Some of these instances related to the
resignation of Ms J Huntley with effect from 31 May 2019, the resignation of Mr M Mello as Non-Executive Director
and Chairperson with effect from June 2019, and the resignation of Mr L Mtimde with effect from 30 November
2019, which created vacancies within the Board. The honourable Minister appointed three Non-Executive Directors
during 2019/20, namely, Ms M Tonjeni, Mr M Tsika and King Madzikane II Diko. The Board is satisfied that there is
the right balance of skills, experience and independence to make a meaningful contribution to the business of the
Company.
Independence of Directors
The Board follows a process of assessing the independence of NEDs on an annual basis for each Director using the
criteria recommended in King IV. The Board has satisfied itself that the NEDs meet the criteria for independence
espoused in the Independence of Directors Policy.
The Board determined that, based on the Memorandum of Incorporation (MOI), the Shareholder’s Compact and
applicable legislation, its main functions and responsibilities were as follows:
a. Giving strategic direction to the Company, in line with government’s objectives, and ensuring that SENTECH
remains a sustainable and viable business. The strategic objectives are set out in the Annual Corporate Plan,
submitted to DTPS and the National Treasury;
b. Preparing and approving Corporate Plans, annual budgets, Integrated Reports and financial statements;
c. Ensuring that SENTECH complies with the obligations imposed by various laws and regulations that are
applicable to SENTECH;
d. Monitoring and evaluating implementation of the Board’s strategies and performance objectives by the
Executive Management, as set out in the Corporate Plan and Shareholder’s Compact;
e. Ensuring that the Company is managed effectively and in accordance with corporate governance best
practice and the highest ethical standards;
f. Regularly assessing the performance and effectiveness of the Board as a whole, as well as the individual
Directors, including the Chairperson of the Board and the CEO, Committees of the Board and the Chairpersons
of the various Committees; and
g. Accounting to the Shareholder on implementation of the Corporate Plan; and ensuring that technologies
and systems used in the Company are adequate to run the business properly and for it to compete through
the efficient use of its assets, processes and human resources.
66
Composition and Number of Meetings
During the 2019/20 financial year, the following changes occurred:
• Mr Magatho Mello, Ms Jacqueline Huntly and Mr Lumko Mtimde resigned during FY 2019/20
• Dr Sandile Malinga was appointed Board Chairperson on 4 February 2020
• Ms Malande Tonjeni, Mr Mxolisi Tsika and King Madzikane II Thandisizwe Diko were appointed as Non-
Executive Directors with effect from 4 February 2020.
Table
Table 20: 20: Meeting
Meeting Attendance
Attendance
meeting
Name of Member 30 April
30 May
30 Oct
Special
30 July
28 Feb
March
30 Jan
2019
2019
2019
2019
2020
2020
2020
**6
Dr S. Malinga (Chairperson-
Appointed Acting
√ √ √ √ √ √ √
Chairperson Aug 19 and
Chairperson Feb 20)
Mr M. Mello (Chairperson-
√ √ N/A
Resigned June 2019) N/A N/A N/A N/A
Ms J. Huntley
X X N/A N/A N/A N/A N/A
Mr L. Mtimde
√ √ √ X N/A N/A N/A
√
Ms T. Malaka √ √ √ √ X √
Ms M. Manyama √ X √ √ √ X √
Ms P. Sibiya X √ √ √ √ √ N/A
Ms M. Tonjeni N/A N/A N/A N/A N/A √ N/A
Mr M. Tsika N/A N/A N/A N/A N/A √ N/A
King M. Diko N/A N/A N/A N/A N/A √ N/A
Mr M. Booi √ X √ √ √ √ √
Mr S. Mthethwa
√ √ √ √ √ √ N/A
Mr T. Leshope √ √ √ √ √ √ N/A
X Apology
√ Present (in person/via
Meetings teleconference)
Attendance
**Special Meeting
X Apology
√ Present (in person/via teleconference)
**Special Meeting
67
67
Meetings Attendance
The comparison of attendance of Board meetings versus the previous financial year, is as
The comparison of attendance of Board meetings versus the previous financial year, is as follows:
follows:
Table 21: Comparison
Table of Board Meeting
21: Comparison of BoardAttendance
Meeting Attendance
Board Members 2017/18Meetings 2018/19 Meetings 2019/20 Meetings
No % No % No
Dr S. Malinga N/A 7 out of 8 88 7 out of%7 100
Acting Chairperson: 15
August 2018 until 3
February 2020
Chairperson: from 4
February 2020
Mr M. Mello 13 out of 13 100 8 out of 8 100 2 out of 2 100

Chairperson: Resigned
June 2019
10 out of 14 71 4 out of 8 50 0 out of 2 0
Ms J. Huntley
Mr L. Mtimde 12 out of 13 92 7 out of 8 88 2 out of 3 66
N/A 7 out of 8 88 6 out of 7 86

Ms T. Malaka
N/A 1 out of 2 50 5 out of 7 71

Ms M. Manyama
N/A 2 out of 2 100 5 out of 6 83

Ms P. Sibiya
N/A N/A 1 out of 1 100
Ms M. Tonjeni

Mr M. Tsika
King M. II Diko

Mr M. Booi

Mr S. Mthethwa

Mr T. Leshope
Board AttendanceBoard
Year-on-Year
Attendance Year-on-Year
68
68
TheTheBoard
Boardspent
spent aaconsiderable
considerable timetime during
during the period
the period deliberating
deliberating matterstopertaining
matters pertaining to the sustain-
the sustainability
ability
Key of SENTECH
of Focus
SENTECH Areas andhas
and this thisnecessitated
has necessitated
a reviewa of review of the Corporate
the Corporate Strategy. Strategy. We are confident
We are confident that the that the
strategic
strategicdirection chosenbybythe
direction chosen theCompany
Company is appropriate
is appropriate for taking
for taking the Company
the Company into theThe
into the future. future. The
The sustainability
sustainability
Board spentof of the Company
a the Company
considerable is is
time something
something
during the that is onisdeliberating
that
period the
onradar of matters
the of
the radar Board
the and
Boardwilland
pertaining continue
to to receive toofreceive
willsustainability
the continue
special
SENTECH focus
and in
this the
has 2019/20
necessitated financial
a reviewyear.
of The
the Board
Corporate has approved
Strategy. We strategic
are initiatives
confident
special focus in the 2019/20 financial year. The Board has approved strategic initiatives aimed that aimed
the at
strategicgrowing
direction
at growing
chosen by the
SENTECH’s Company
business. is
The appropriate
merger of for taking
SENTECH the
and Company
BBI, into
business the future.
development The
SENTECH’s business. The merger of SENTECH and BBI, business development and sustainability areandsustainability
sustainabilityof the
are Company
standing is stand-
something
items onthat
the is on the
Board radar of the Board and will continue to receive special focus in the 2019/20 financial year.
Agenda.
ing items on the Board Agenda.
The Board has approved strategic initiatives aimed at growing SENTECH’s business. The merger of SENTECH and BBI,
business development
The Board and that
recognises sustainability are standing
the management of items on the Board
any business Agenda.
is fundamentally about managing risks.
The Board recognises that the management of any business is fundamentally about managing risks.
SENTECH’s risk management is underpinned by its Risk Management Framework and Policy that have
SENTECH’s
Thebeen risk management
Boardreviewed
recognises that the
during is underpinned
the reporting
management by itsis Risk
of any business
period. Management
fundamentally Framework
about managing and
risks. Policy risk
SENTECH’s that have
management
been reviewedis underpinned
during thebyreporting
its Risk Management
period. Framework and Policy that have been reviewed during the
reporting period.
The Board and Board Committee Charters have been reviewed and aligned to the new strategies of the
The Board and
Company. The Board
Board is Committee Charters
confident that haveCommittees
the Board been reviewed and aligned
are adequately to the new
capacitated strategies of the
to discharge
The Board and Board Committee Charters have been reviewed and aligned to the new strategies of the Company.
their
Company.responsibilities.
The Board The
is the Board
confident has approved
that the Boardvarious policies
Committees as part of overseeing
are adequately the governance
The Board is confident that Board Committees are adequately capacitated to dischargecapacitated to discharge
their responsibilities. The their
process.
responsibilities. The Board has approved various policies as part of overseeing the governance process.
Board has approved various policies as part of overseeing the governance process.
Key Matters Discussed
Key
KeyMatters
MattersDiscussed
Discussed
Month Matter
April 2019 a. Reviewed Board Charter and Workplan
b. 2018/19 FY Fourth Quarter Business Performance Report
c. 2019/20 FY Risk Appetite and Tolerance Levels
d. Reviewed Delegation of Authority
e. Reviewed Charters of Board Committees
f. Stakeholders Engagement Strategy
g. Report of the Honourable Minister of Communications’ visit to SENTECH
May 2019 a. 2018/19 FY Draft Integrated Report

b. Unaudited 2018/19 FY Annual Financial Statements
c. Irregular Expenditure (Incurred during 2018/19 Financial year)
July 2019 a. Board Appraisal Report & Audit & Risk Committee Appraisal Report
b. Analysis of the Minister of Communications and Digital Technologies’ Budget Vote
Speech and its Implications on SENTECH’s Strategy and Operations
c. External Audit Report & Management Letter Points for the 2018/19 FY
d. Audited Annual Financial Statements for the Year Ended 31 March 2019
e. Draft Integrated Report for the Year Ended 31 March 2019
f. 2019/20 FY First Quarter Business Performance Report
g. Combined Assurance Plan for the 2019/20 FY
h. 2019/20 FY First Quarter Sustainability Plan Implementation Report
i. 2019/20 FY First Quarter Marketing and Sales Strategy Implementation Report
October 2019Month a. 2019/20 FY Second Quarter Business

Matter Performance Report
b. Business Continuity Management Policy
January 2020 a. 2019/20 FY Third Quarter Business Performance Report
c. Business Continuity Management Plan
b. Draft 2020/21 – 2024/25 FY Corporate Plan
Month d. Matter
National Treasury – Application for Condonation of Irregular Expenditure
c. Draft Shareholder’s Compact 2020/21 FY
January 2020 e.
a. 2019/20 FY Third
67 Quarter Business Performance Report
d. 2020/21 FY Corporate Calendar
b. Draft 2020/21 – 2024/25 FY Corporate Plan
e. Bilateral Meetings with the Minister
c. Draft Shareholder’s Compact 2020/21 FY
f. Board Training Development 2020/21 FY
d. 2020/21 FY Corporate Calendar
g. Asset Management Policy Review
e. Bilateral Meetings with the Minister
h. 2019/20 FY Third Quarter Sustainability Plan Implementation Report
f. Board Training Development 2020/21 FY
i. 2019/20 FY Third Quarter Stakeholders Engagement Report
g. Asset Management Policy Review
j. 2019/20 FY Third Quarter Marketing and Sales Strategy Implementation Report
h. 2019/20 FY Third Quarter Sustainability Plan Implementation Report
i. 2019/20 FY Third Quarter Stakeholders Engagement Report
February 2020 j.a. Draft 2020/21
2019/20 – 2024/25
FY Third QuarterFY Corporate
Marketing Plan
and Sales Strategy Implementation Report
February 2020 a. Draft 2020/21 – 2024/25 FY Corporate Plan

Technology, Sales
Technology, and
Sales Regulatory
and RegulatoryCo-ordination
Co-ordination(TSRC)
(TSRC)Committee
Committee
Board
Board
Committees
Committees
Board Committees
Board Committees
Board Committees
The The Charter
Charter
Technology,
Technology, was
Saleswas reviewed
reviewed
Sales
and and ininApril
Regulatory
Regulatory April 2019and
2019
Co-ordination
Co-ordination andthethe amendments
amendments
(TSRC)
(TSRC) pertained to
Committee pertained
Committee to the
the purpose of the the Charter,
Charter,
Technology,
Technology,
membership Salesofand
SalestheandRegulatory
RegulatoryCo-ordination
Committee, Co-ordination
strategy (TSRC)
alignment Committee
(TSRC) Committee
with regard to marketing and sales, and innovation.
membership of the Committee, strategy alignment with regard to marketing innovation.
As the Committee
Technology, Sales and considered,
Regulatory amongst
Co-ordination others,
(TSRC)activities
Committee
As the Committee considered, amongst others, activities pertaining to sales and pertaining to sales and business development,
development,
The
The The
a
Charter
Charter
Charter
change
The of
Charter
was
waswas
name
reviewed
was
reviewed
reviewed
of the
reviewed
in
ininApril
April
April
Committee
in April
2019
2019
2019 to
2019
and
andandthe
include
and the
the
amendments
theamendments
the
amendmentspertained
sales
amendmentsand
pertained
pertainedto
pertained
business
to
to the
tothe
the
development
purpose
thepurpose
purpose
aspects
of
ofthe
of theCharter,
the
the
was
Charter,
Charter,
Charter,
done.
a change of name of the Committee to include the sales and business development was done.
membership
membership
membership
The Charter of
of
was the
of
thetheCommittee,
Committee,
Committee,
reviewed in April strategy
strategy
strategy
2019 and alignment
alignment
alignment
the amendments with
with
with regard
regard
regard
pertained to
to
totomarketing
marketing
marketing
the
membership of the Committee, strategy alignment with regard to marketing and sales, and innovation. purpose and
and
and
of sales,
sales,
sales,
the and
and
and
Charter, innovation.
innovation.
membership
Asof
As the
As theCommittee
the Committee
Committee, considered,
considered,
strategy amongst
amongst
alignment withothers,
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regard activities
activitiespertaining
pertaining
toandmarketing and totosales
to
sales, and
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and andbusiness Asdevelopment,
business
innovation. Committeea
development,
the
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As
The Committee
the Committee
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Committee considered,
ensures
ensures considered,
co-ordination
co-ordination amongst
amongst
between
between others,
policy,
policy, others, activities
regulation
regulation activities
and pertaining
pertaining
technology
technology ininthe to sales
sales
thedevelopment
development and
and
and
and business
business
implementation
implementation development,
development,
of
of the
the
considered,
achange ofofname
aCompany’s amongst
ofofthe others, activities
Committee totopertaining
include to
thethe sales
sales and
and business
business development,
development a change
aspects of
was name
done.of the
achange
change
change
Company’s
ofofname
namename
strategy.
strategy.
of
the
of the
the Committee
Committee
Committee to include
toinclude
include the
the sales
sales
sales and
and
and business
business
business development
development
development aspects
aspects
aspects waswas
was done.
done.
done.
Committee to include the sales and business development aspects was done.
Mandate
Mandate SummarisedCommittee
Summarised CommitteeFeedback
Feedback
The Committee
The Committee ensures
ensures co-ordination
co-ordination
co-ordination between
between between
policy,
policy, policy,
regulation and
regulationand regulation
technology
andtechnology in and
the technology
development in the development
andimplementation
implementation ofof the of and
the
•
TheReviewing
Committee
The•Committee
Reviewing
ensuresensures
reports
reports
co-ordination
on on between
implementation
implementation
policy,
of of
key keyregulation
projects.
projects. • •technology in the development
Considered
Considered
development and
matterspertaining
matters
and
pertaining implementation
to the
to
the
of
the sustainability
sustainability of
implementation
Company’s
Company’s
Company’s strategy.
strategy.
strategy. of the Company’s strategy. SENTECH.
• Ensuring that SENTECH’s Technology and Information SENTECH.
• Mandate
Ensuring that SENTECH’s Technology and Information
Mandate SummarisedCommittee
Summarised CommitteeFeedback
Feedback
Mandate Strategy, its development and implementation are Summarised
• Committee
Considered reportsFeedback
on business development initiatives.
Strategy, its development and implementation are • Considered reports on business development initiatives.
• • aligned
Reviewing
Reviewing with reports on
the business
reports on implementation
objectives. of
implementation of key
key projects.
projects. ••• Considered
Considered
Approved matters
matters
the pertaining
pertaining
Technology tothe
the sustainability
andtoInformation,
sustainability of of
Regulatory
• Reviewing
aligned withreports on implementation
the business objectives. of key projects. •• Considered
Approved thmatters
e pertaining
Technology and to the sustainability
Information, of
Regulatory
Ensuring
• • Overseeing
Ensuring that SENTECH’s
that
that Technology
the Marketing
SENTECH’s and
and Sales
Technology and Information
Strategy
Information
SENTECH.
SENTECH.
and Policy strategies and monitored their implementation.
• Ensuring that
Overseeing SENTECH’s
that Technology
the Marketing and Information
and Sales Strategy SENTECH.
and Policy strategies and monitored their implementation.
Strategy,
support
Strategy, itsits
the development
Company’s
development andand
objectiveimplementation
ofimplementation
achievement areof are ••• Considered
Considered reports
Consideredreports onbusiness
on business
implementation development
ofdevelopment
the initiatives.
initiatives.
Operations
Strategy,the
support its Company’s
development and implementation
objective of achievementare of •• Considered
Considered reports on business
implementation of development
the Operations initiatives.
aligned
increased with
aligned with the
sales business
revenue.
the objectives.
business objectives. •• Approved
Approvedthe
Management theTechnology
Technologyand
Plan. andInformation,
Information, Regulatory
Regulatory
aligned with
increased salesthe businessobjectives.
revenue. • Approved thePlan.
Management Technology and Information, Regulatory
Overseeing
• • Ensuring
Overseeing thatthatthe
thatthe Marketing
strategies
the and and
emanating
Marketing Sales
from Strategy
innovative
Sales Strategy • and and Policystrategies
Policy
Monitored strategies andmonitored
and
various business monitored
cases and their
their implementation.
implementation.
progress reports on
• Overseeing
Ensuring that that
the the Marketing
strategies and Sales
emanating from Strategy
innovative and Policy strategies and monitored their implementation.
support
supportthe
initiatives theCompany’s
support Company’s objective
the buildingobjectiveof achievement
of capabilities
of digital achievement andof ••• Monitored
of Considered
Considered
these
various business
implementation
implementation
business cases.
cases
ofofthe
and
Operations reports on
progress
theOperations
support
initiatives the
increased
increased
Company’s
support
sales the
salesrevenue.
revenue.
objective
building of achievement
of digital capabilitiesofand • Considered
these business implementation
cases. of the Operations
enhance connectivity. Management
Management Plan.
Plan.
increased sales
enhance connectivity. revenue. • Management
Focused on revenuePlan. diversification.
• • Ensuring
Ensuringthat
Ensuring thatthe
that the
the strategies
strategies
governance emanating
emanating from
of technology from innovative ••• Focused
innovative
and onvarious
revenue diversification.
• Ensuring
Ensuring that
that the
the strategies
governance emanating
of from
technology innovative
and and • Monitored
Monitored
Approved the various business
business
2019/20 cases
casesand
ICT Programmes. andprogress
progressreports
reportsonon
initiatives
initiatives
information support
support
supports thebuilding
the building
the ofof digital
digital
organisation incapabilities
capabilities
achieving and •
its • Monitored
these
thesebusiness
Approved various
business business
cases. cases and progress reports on
cases. ICTProgrammes.
the 2019/20
initiatives
information
enhance
enhance
strategic support
supports the building
connectivity.
connectivity.
objectives. of digital in
the organisation capabilities
achievingand its • these
Received reports
business on the DTT Commercialisation Plan.
cases.
enhance
strategic connectivity.
objectives. ••• Received
Focused
Focusedon on revenue
revenue
reports ondiversification.
diversification.
the DTT CommercialisationPlan.
• • Advising
Ensuringand
Ensuring thatthatthethe
guiding governance
governance
the Boardofwith ofrespect
technology technology
and and •
to the DTT • Received
Focused onrisk management
revenue reports on matters within the
diversification.
•• • Approved
Approved
Received the
the
risk 2019/20
2019/20
management ICT
ICT Programmes.
Programmes.
reports on matters within the
• Ensuring thatguiding
information
Advising and
information
the the governance
supports
supports
commercialisation the the
theBoar
and dof technology
organisation
with
organisation
any other respect
related and
ininachieving
achieving
to the DTT
matter its
its
that Committee’s mandate.
•• Committee’s
Approved
Received the
reports 2019/20
on
mandate. the ICTProgrammes.
DTT Commercialisation Plan.
the strategic
information objectives.
supports
commercialisation
strategic
relates toobjectives.
the the
andorganisation
digitisation any other related
of television. in achieving
matter thatits • Received reports on the DTT Commercialisation Plan.
strategic toobjectives. •• Received
Received reports
risk on the
management DTT Commercialisation
reports on matters within Plan.
the
• •relates
Advising
Advising the anddigitisation
and guidingthe
guiding ofBoard
the television.
Boardwith
with respect
respect to to the DTT •
the DTT Received risk management reports on matters within the
the commercialisation and any other related matter that • Committee’s
Received risk
Committee’s mandate.
management
mandate. reports on matters within the
• Advising and guiding theand
the commercialisation Board
any with
otherrespect to the DTT
related matter that
relates
therelates to the
commercialisation digitisation
and any of television.
other related matter that Committee’s mandate.
to the digitisation of television.
relates to the digitisationof television.

Composition andand
Composition Number of Meetings
Number of Meetings
Composition
During and Number
the period of Meetings
under review, the TSRC comprised the following members and held three meetings as
During the
During
set out period under
the period
in Table review,
22. under review, thethe
TSRC comprised
TSRC comprisedthethe
following members
following membersand held
and three
held meetings
three meetings asas
During
set out the period
in Table
set out under
22. 22.
in Table review, the TSRC comprised the following members and held three meetings as set out in
Table 22.
Table 22: TSRC Meetings
Table
Table 22: TSRC
22: TSRC Meetings
Committee Meetings
Table 22: TSRC Committee Meetings
Name of Member 1 April 2019 to 31 March 2020
18 July 2019 21 Oct 2019 16 Jan 2020

Dr S Malinga (Chairperson) √ √ √
Mr L Mtimde √ N/A N/A
Ms P Sibiya √ √ √
N/A
XX Apology
Apology
XX Apology
Apology
√√ Present
Present
√ √Present (in(in
Present person
(in personvia /via
person/via
(in person/via teleconference)
/ teleconference)
teleconference)
teleconference)
69
** **Special
Special
**Special
**Meeting Meeting
meeting
Special meeting
69
The CEO, CFO, COO, Chief Strategy Officer, Chief M&S71Officer and and
Executive: Operations attended Com-
The The CEO,
CEO, CFO,CFO,
COO,COO, Chief
Chief Strategy
Strategy Officer,
Officer, Chief
Chief M&S
M&S Officer Executive: Operations
69 Officer Executive: Operations
The CEO, CFO, COO, Chief Strategy Officer, Chief M&S Officer and Executive: Operations attended Committee
mittee
Key
attendedmeetings
meetings
attended
Matters by invitation.
byCommittee
invitation.
Discussed
Committee meetings
meetings byby invitation.
invitation.
69
Key Matters How the matter has been resolved
Key Matters How the matter has been resolved
Ageing infrastructure The lack of dual illumination funding in the outer years will result in the shortfall for the business
e The lack of dual illumination funding in the outer years will result in the shortfall for the business
Ag ing infrastr
that will lead to a total operating loss being reported by the 2020/21 financial year. A request 70
71 that will lead to a totalINTEGRATED
SENTECH
SENTECH operating lossREPORT
INTEGRATED being
REPORTreported by the 2020/21 financial year. A request
2019/20
2019/20
for funding has been submitted to National Treasury. SENTECH has collaborated with key
attended
Key Committee meetings by invitation.
Matters Discussed
Key Matters
Matters Discussed How the matter has beenresolved
Ageing infrastructure
Key Matters The
Howlack
theofmatter
dual illumination fundingin the outer years will result in the shortfall for the business
has been resolved
Ageing infrastructure that
Thewill
lack lead to illumination
of dual a total operating loss
funding being
in the reported
outer by result
years will the 2020/21 financial
in the shortfall foryear. A request
the business
for
thatfunding
will leadhas
to abeen submitted
total operating tobeing
loss National Treasury.
reported SENTECH
by the 2020/21 has collaborated
financial with
year. A request forkey
industry
funding stakeholders to create
has been submitted digital migration
to National Treasury.awareness.
SENTECH has collaborated with key industry
Impact of proposed stakeholders
SENTECH to create digital
participated migration
inthe public awareness.of the ECA bill.
discussions
changes
Impact to
of the
proposed SENTECH participated in the public discussions of the ECA bill.
regulatory environment
changes to the
regulatory
Financial environment
sustainability Revenue diversification and development of new products has been considered.
Financial sustainability Revenue diversification and development of new products has been considered.
Forthe
For theyear
yearahead,
ahead, the
the Committee
Committee willwill monitor
monitor revenue
revenue diversification,
diversification, development
development of new products
of new products
For the year ahead, the Committee will monitor revenue diversification, development of new
and
and services
services and
and the
the
For theResources,
year ahead, Company’s
Company’s
the inorganic
inorganic growth
growth efforts.
efforts.
products
Human and services andCommittee will monitor
the Company’s
Nominations revenue
inorganic
and Remuneration growthdiversification,
Committee (HRNRC) development of new
efforts.
products and services and the Company’s inorganic growth efforts.
Human
HumanResources,
Resources,Nominations
Nominationsand Remuneration
and Remuneration Committee
Committee (HRNRC)
(HRNRC)
The Committee assists the Board on matters of appointment, talent management, succession planning and strategic remuneration by
ensuring decisions are aligned to the Company’s strategic objectives. The Committee has oversight over human resources strategies,
aimed at creating and sustaining a high-performance culture.
Mandate Summarised Committee Feedback
a. Ensuring development and annual review of the strategy a. Received reports on the implementation of the HumanResources
and plan for the Company’s human resources. Strategy and Plan.
b. Ensuring development and review of policies for the b. Reviewed various policies pertaining to human resources.
Company’s human resources. c. Approved the NEDs’ Development Programme and Board
c. Ensuring that competitive remuneration and reward Evaluation Engagement letter.
strategies and policies are in place to facilitate 71Monitored the Succession Planning Framework for Executive
d.
72
the recruitment, motivation and retention of Directors.
high-performance staf f at all levels. e. Noted reports on management of significant risks pertaining to the
mandate of the Committee.
d. Regularly reviewing the size and composition of the
f. Considered and recommended the 2019/20 Corporate Scorecard.
Board with regard to the appropriate mix of knowledge,
skills and experience including the business, commercial
and industry experience needed to govern the
Company and making recommendations to the Board
with regard to any appropriate changes.
e. Assisting the Board with the recruitment o f Executive
Directors.
f. Reviewing and recommending to the Board the relevant
criteria necessary to measure the performance of
Executive Directors in discharging their functions and
responsibilities.
g. Establishing procedures for the Committee to oversee
the evaluation of the performance of the Board and
each individual Director.
h. Ensuring that Directors receive ongoing development
and training (education) on their duties, responsibilities
and nature of SENTECH’s business
i. Reviewing the implementation of risk management
plans on human capital matters, human resources
policies, and labour legislation compliance with the
Code of Business Conduct and Ethics.

71
SENTECH
SENTECHINTEGRATED REPORT
INTEGRATED 2019/20
REPORT 2019/20
year-end matters.
Table 23: HRNRC
Composition and Meetings
Number during
of the Year
Meetings
During the 2019/20 financial year, the HRNRC comprised of the following members and held three
Table 23: HRNRC
Composition and Meetings
Number during
of the Year
Meetings
During theand
Composition
scheduled 2019/20
and Number
five financial year, the
of Meetings
special meetings HRNRC
as set out incomprised
Table 23. of Thethe following
special members
meetings and held three
were necessitated by
During the
scheduled 2019/20
and
year-end matters.five financial
special year,
meetings the HRNRC
as set out comprised
in Table of
23. the
The following
special members
meetings and
were held three
necessitated sched-
by
Name ofthe
During Member
2019/20 16 Apr
financial year, 8the
JulyHRNRC 18 July
comprised30 Julyof the 21 Oct
following 28 Nov
members 2019**
and 16 Janthree25sched-
held Feb
uled
Duringand
thefive special
2019/20
year-end matters. meetings
financial year,
2019
as
the set
** 2019
out
HRNRC in Table
comprised 23. The
of the special meetings
following memberswere
and necessitated
held three by year-end
scheduled
Name of Member 16 Apr 8 July ** 2019
18 July 2019**
30 July 2019
21 Oct 28 Nov 2019** 2020
16 Jan 2020**
25 Feb
uled
and and
five
matters.
Table 23:
five
specialspecial
HRNRC
meetings
meetings
Meetings asduring
set out
2019
asinset
** the
out in Table
Table
Year** 23.2019
2019
23.2019**
The special The specialwere
meetings meetings
2019
were necessitated
necessitated by year-end
2020
by year-end
2020**
matters.
matters.
Table 23: HRNRC Meetings during the Year
Ms T Malaka (Chairperson) √ √ √ √ √ √ √ √
Table 23: HRNRC
Ms JT Huntley
Malaka Meetings during
(Chairperson) √ the Year
√
N/A √
N/A √
N/A √
N/A √N/A √
N/A √
N/A
Table
Table 23:
23: HRNRC
HRNRC Meetings
Meetingsduring
during
16 Apr
the Year
the
8 Year
July 18 July
Name
Ms J of Member
Huntley
Mr M Mello √ N/A N/A 30 JulyN/A 21 Oct N/A 2019** 16 JanN/A
28 NovN/A 25 FebN/A
Name of Member 2019 **
16 Apr 2019 **
8 JulyN/A 2019
18 July 2019**
30 JulyN/A 2019
21 Oct N/A 2019** 2020
28 Nov√N/A 16 JanN/A 2020**
25 FebN/A
MrSMMalinga
Dr Mello √ √ N/A
√ √ √ √ √
2019 ** 2019 ** 2019 2019** 2019 2020 2020**
Dr SPMalinga
Ms Sibiya √
N/A √
N/A √
N/A √
N/A √ √ √ √
Ms T Malaka (Chairperson) √ √ √ √ √ √ √ √
Ms P Sibiya N/A N/A N/A N/A √ √ √ √
Ms JT Huntley
Malaka (Chairperson) √ √N/A √
N/A √
N/A √
N/A √
N/A √
N/A √
N/A
Ms
XMr J Huntley
M
Apology Mello √ N/AN/A N/A N/A N/A N/A N/A
Mr
XDr SMMalinga
Apology Mello √ N/A
√N/A √ N/A
√ N/A
√ √N/A N/A
√ N/A
√
Dr
Ms S Malinga
P Sibiya √
N/A √N/A √
N/A √
N/A √ √ √ √
√ Present
**Special (in person/via teleconference)
Meeting
Ms P Sibiya N/A N/A N/A N/A √ √ √ √
X **Special
Apology Meeting
The
√XXX
Present
Apology
ApologyChief Human
(in person/via
Apology Resources Officer and Executive Directors
teleconference) attend meetings by permanent invitation.
**Special
The
√√X
Present Meeting
Chief
(in Human
person/via Resources
teleconference) Officermeetings
and Executive Directors attend meetings by permanent invitation.
The
PresentHRNRC
Apology
√ Present held
(in person/via three scheduled
teleconference)
(in person/via teleconference)
and five special meetings during the period under review.
**Special Meeting
The
**Special
The
√ HRNRC
Present
Meeting
special (in
held
meetings
person/via
three pertained to year-end matters. special
scheduled
teleconference)
meetings and five meetings during the period under review.
The**Special Meeting
TheChief
special
**Special
Human
meetings
Meeting
Resources
pertained Officer and Executive
to year-end matters.Directors attend meetings by permanent invitation.
The Chief
HRNRC
The Chief Human
Human Resources
held Resources
three scheduled Officer and
meetings
Officer and Executive Directors
andDirectors
Executive five special attend during
meetings
attend meetingsmeetingstheby permanent
period
by permanent invitation.
under review.
invitation. The The
HRNRC
Board
The andHuman
Chief Committee’s Evaluation
Resources Officer and Executive Directors attend meetings by permanent invitation.
The
held HRNRC
three
special held three
scheduled
meetings scheduled
meetings
pertained to and meetings
five special
year-end and five special
meetings
matters. meetings
during during
the period underthe period
review. Theunder review.
special The
meetings
Board
The andHuman
Chief
HRNRC Committee’s
held three Evaluation
Resources Officermeetings
scheduled and Executive Directors
and five special attend
meetingsmeetings by permanent
during the period under invitation.
review.
special
pertainedmeetings
to year-end pertained
matters. to year-end matters.
The special
HRNRCmeetings
held three scheduled
pertained meetingsmatters.
to year-end and five special meetings during the period under review.
The HRRNC
Board and is responsible
Committee’s for the Board appraisal. The 2019 evaluation was carried by the Institute of
Evaluation
The special
Board and meetings pertained to year-end matters.
The
Board andCommittee’s
HRRNC
Directors Committee’s
(South Evaluation
is responsible for theMay
Evaluation
Africa) during Board appraisal.
2019 and it The 2019 evaluation
measured was carried
the effectiveness by the
of the Institute
Board of
and its
Board
Directorsand Committee’s
(South Evaluation
Africa) for
during May 2019 andThe
it namely:
measured the effectiveness ofthe
theInstitute
Board of and its
Committees.
The HRRNC
Board and isis The appraisal
responsible
Committee’s covered
the Board
Evaluation sixappraisal.
dimensions, 2019 evaluation was carried by Direc-
The HRRNC
Committees.
The HRRNC responsible
The appraisalfor the Board
covered appraisal.
six The
dimensions, 2019
Thenamely:evaluation was carried by the Institute of Directors
tors (South is responsible
Africa) duringforMay the2019
Board
and appraisal.
it measured 2019 evaluation was
the effectiveness of carried by the
the Board andInstitute
(South Africa) during May 2019 and it measured the effectiveness of the Board and its Committees. The appraisal
of Direc-
its Committees.
The
tors
The HRRNC
(South
appraisal is responsible
Africa) during
covered namely: for
May the
2019Board
and
six dimensions, namely: appraisal.
it measuredThe 2019
the evaluation
effectiveness was
of carried
the Board by
andthe Institute
its of
Committees.
covered
Table
The 24six
HRRNC - dimensions,
Board
is Evaluation
responsible for the Board appraisal. The 2019 evaluation was carried by the Institute of
Directors
The appraisal(South Africa)
covered during May namely:
six dimensions, 2019 and it measured the effectiveness of the Board and its
Table 24
Directors - Board
(South Evaluation
Africa) during May
Committees.
Table
Table 24:Board
24: Board The appraisal
Evaluation
Evaluation covered six 2019 and it namely:
dimensions, measured the effectiveness of the Board and its
Committees.
Table 24: BoardThe appraisal covered six dimensions, namely:
Evaluation
Board Composition Board Responsibilities
Table
Board 24 - Board Evaluation
Composition Board Responsibilities
Committees of the Board Relationship with Management
Table 24 - Board Evaluation
Stakeholder Relationships Board Meetings
Stakeholder
Board Relationships
Composition BoardResponsibilities
Board Meetings
The
The Evaluation
Board Composition
Evaluation Report
Report willwill be submitted
be submitted to the Shareholder
to the Shareholder within
in line Board line with the requirements
Responsibilities
the requirements of the
of the Memorandum Memorandum of
of Incorporation.
Incorporation.
The Evaluation Report will be submitted to the Shareholder in line Relationship
with the requirements of the Memorandum of Incorporation.
Committees of the Board with Management
Stakeholder
Report of theRelationships
Social and Ethics Committee Board Meetings
Stakeholder
Report of theRelationships
of the Socialand
Social andEthics
EthicsCommittee
Committee Board Meetings
As
Thethe Chairperson
Evaluation ofbethis
Report will Committee,
submitted I am pleased
to the Shareholder in line to
withpresent the report
the requirements of theofMemorandum
the SEC and the work done by
of Incorporation.
As
As
Thethe
the Chairperson
Chairperson
Evaluation Report ofof
will this
bethisCommittee,
Committee,
submitted to the I am
I ampleased
pleased
Shareholder in to
line present
to
withpresent
the the report
the of
report
requirements
this Committee during the last financial year. The SEC composition complies with the requirementsof the
theof SEC
the and
SEC
Memorandum the
and
of work
the done
work
Incorporation. by
of this
done by
the
Committee
this Committeeduring the last financial year. The SEC composition complies with the requirements of the Companies
Companies Act. during
Core tothe thelast
SECfinancial
objectives year.
areThetheSEC 73composition
values of SENTECH complies
and the with the to
desire requirements
make a meaning- of the
Act. Core to the
Companies Act.SEC
Coreobjectives
to the are the
SEC values ofare
objectives SENTECH
the 73and the
values of desire to make
SENTECH and a meaningful
the desire to contribution
make a to our
meaning-
ful contribution to our country. We strive to be a relevant state-owned company, demonstrating integrity,
country. We strive to be a relevant state-owned company, demonstrating integrity, moral values and behaviour
ful contribution
moral values and tobehaviour
our country. thatWe strive totrust.
promotes be a relevant
Our corestate-owned
values includecompany,
social demonstrating
responsibility integrity,
that promotes trust. Our core values include social responsibility in alignment with our culture and in ouralignment
approach
moral
with values
our
to responsible and
culture behaviour
and
business. ourOur that promotes
approach
approach trust.
toisresponsible
greater than Our core complying
business.
simply values include
Our approachwith social responsibility
is greater
the than
functions ofsimply
the incomplying
SEC alignment
as set out
with 73
in theour
the culture
functions
Companies and ofour
Act. theapproach
We SEC about
care as settothe
responsible
out environment business.
in the Companies
73 we live Our
Act.
in approach
We
and care
we is greater
about
recognise the than simply growth
environment
that economic complying
we liveand
in
with
and the
we functions
recognise of
that the SEC
economic as set out
growth in the
and Companies
transformation Act.ofWe
our care about
society
transformation of our society are vital to creating a sustainable future for the communities we operate in.are the environment
vital to creating we
a live
sustain-in
-
able future for the communities we operate in.

SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
2019/20 73
72
greater
about
Mandate thethan simply complying
environment we live in with and the wefunctions
recognise
Committee
of that
the SEC as set out
economic
Feedback
in theand
growth Companies
transformation Act. Weofcare our
about
society the environment we
Mandateare vital to creating a sustainable future for live in and we recognise that economic
the communities
Committee Feedback growth
we operate in. and transformation of our
a. Responsible for oversight over SENTECH’s reputation
society are vital to creating a sustainable futurea.forConsidered SENTECH’s Sustainability Strategy and Plan.
the communities we operate in.
a.management
Respo nsibleand for stakeholder
oversight over SENTECH’sreputation
relationships. b.a. Monitored
Considered SENTECH’s
progress on the Sustainability
ImplementationStrategy andPlan.
of People Transformation
Mandate Committee Feedback
management
b. Ensuring
Mandate that theand stakeholder
Company’s relationships.
responsible corporate b. Monitored
Strategy. progress on the Implementation of People Transformation
Committee Feedback
a. Responsible
b.citizenship
Ensuring that fortheoversight
Company’s over SENTECH’scorporate
responsible reputation a. Considered
Strategy. theSENTECH’s Sustainability Strategy and Plan.
a.management efforts
Respo nsibleand include compliance
for stakeholder
oversight over with
SENTECH’s the
reputation c. a. Considered 2019/20 Procurement Plan and monitored Plan.Transformation
citizenship efforts include relationships.
compliance with the b.c. Monitored progresson the Implementation Plan andof People
monitored
Constitution,
management the law,
and and adherence b. progress
relationships. Monitoredmade on B-BBEE.
progress on the Implementation of People Transformation
b. Ensuring that the
Constitution, thelaw,
Company’s
leading responsible andcorporate
adherence d. Strategy. progress made on B-BBEE.
to the Company’s
b.citizenship
Ensuring that theinclude
Company’s responsible and corporate Strategy. the 2019/20 Procurement Plan and monitored progress and Sales
efforts
to the Company’s codes ofcompliance
conductandwith the
policies. c.d. Considered and Sales
c. c. made on B-BBEE. 2019/20 Procurement m
c. Constitution, the law, leading standards and adherence Strategy.
procedures to manage
Constitution, law,ethics
thecodes leading instandards
SENTECHand and ensuring e. Reviewed
adherence the Stakeholder
progress made Engagement Strategy and received reports
on B-on the implementation
to the Company’s
procedures to manage of conduct
ethics and policies.
in SENTECH and ensuring d.e. Monitored
Reviewed theprogress Engagement Strategy of theand
Marketing
receivedand Sales
reports
thattothethecode and policies
Company’s codes of address
conduct the key
and ethical risks
policies. d. Monitored progress on the implementation of the Marketing and Sales
c. Reviewing the code of conduct, ethics policies
that the code and policies address the key ethical risks and Strategy.
on the implementationof the strategy.
in
c. the Company.
Reviewing
procedures to
the code of conduct, ethics policies and
manage ethics in SENTECH and ensuring f.e. Received
Strategy.reports on the
in the Company. Reviewed the Stakeholder
f. Received reports on the Engagement Strategy and received reports
procedures
d. Reviewing the to manage ethicsof
implementation inrisk
SENTECH and ensuring
managemen t on e. Reviewed reports
that
d. Reviewingthe code
the and policies
implementation addressof the
risk key ethical
managemen t risks
on on the implementation of the strategy.
humanthat the code and policies address the key ethical risks g. on the of strategy.
in the Company.
human resources, ethics, compliance,governanceand f.g. Received reports on the implementation ofStrategy
the H e a l t h a n d S a f e t y
in the Company. f. Reviewed
Received Socio-Economic
reports on the Development
implementation of the Hdevelopment
e a l t h a n d Sincluding
afety
d.stakeholder
Reviewing relations.
the implementation of risk management on h. Monitored
framework. activities related to socio-economic
d.stakeholder
Reviewingthe relations. of t on h. Monitored
framework.andactivities related to socio-economic development including
human resources, ethics, compliance, governance and g. enterprise Reviewed Socio
humanresources, ethics, compliance,governanceand g. enterprise and -Economic Development Strategy management,
Reviewed Socio-
stakeholder relations. h. Monitored activities related to socio-economic development plemented by the
including
stakeholder relations. and socio-economic
h. Company.
Monitored development
activities related programmes
to socio-economic im plemented
development by the
including
enterprise and supplier development, supply chain management,
Company.
enterprise and supplierdevelopment,supplychain management,
i. and socio-economic development programmes implemented by the
i. Monitored employees’
and socio-economic skills development.
development programmes im plemented by the
j. Considered
Company. the 2019/20 CompliancePlan and ComplianceReports.
j. Considered
Company. the 2019/20 Compliance Plan and Compliance Reports.
k.
i. Monitored employees’ skills development.
k.
i. Received
Monitored reports on theskills
employees’ implementation
development.of the Fraud Prevention Plan.
l.j. Considered the 2019/20 Compliance Plan and to employment
Compliance and
Reports.
l.j. Received reports on risk mitigation
Consideredthe 2019/20 Compliance pertaining to employment
Plan and Compliance and
Reports.
labour and compliance.
k. Received reports on the implementation of the Fraud Prevention Plan.
k.
l. Received reports on risk mitigation pertaining to employment and
l.
Composition and Number of Meetings labour relations, ethics and compliance.
Composition and
Composition and Number of Meetings Number of Meetings labour relations, ethics and compliance.
Duringthethe2019/20
Composition
During 2019/20 financial
and Number
financial year,
ofyear,
Meetings
the the SEC comprisedfollowing
the following members and meetings outasin
inset out25.
in
During theand
Composition
Composition
Table 25. 2019/20
Number
and financial
of
Number year,
Meetings
of theSEC
SECcomprised
Meetings comprisedthe
the following members
members and
and meetings
meetings as set out
as set Table
Table 25.
Composition
During and Number
the 2019/20 of Meetings
financial year, the SEC comprised the following members and meetings as set out in Table 25.
During
Table 25:
During the
SEC
theSEC 2019/20
Meetings
2019/20 financial year,
financial year, thethe
SECSEC comprised
comprised the following
the following members
members and meetings
and meetings as set outasinset out25.
Table in
Table 25:
During Meetings
Table
Table 25.the 2019/20 financial year, the SEC comprised the following members and meetings as set out in Table 25.
Table25:
25:SEC
SECMeetings
Meetings
Table 25:
Name
Table SEC
25:of
Name Meetings
Member
SEC
of Meetings
Member 11April
April2019
2019––31
31March
March 2020
2020
Table 25: SEC Meetings 1919July-19
July-19 18 Oct-19
18 Oct-19 21
21 Jan-20
Jan-20
MrMr Name
L Mtimde
L Mtimde of Member
(Chairperson)
Name of (Chairperson)
Member √ √ √1√1April
April2019
2019––31
31March
March 2020
2020 N/A
N/A
MsMs T Malaka
T Malaka 19 July-19
√
19 July-19
√ 18 Oct-19
√
18 Oct-19
√ 21
21 Jan-20
√√
Jan-20
Ms Mr
MsMMrLMMtimde
Manyama
L Manyama
Mtimde (Chairperson)
(Chairperson) √√√√ √√ N/A
N/A√√
DrMsSMs
Dr ST Malinga
Malaka
Malinga
T Malaka √√√√ √X
X √ √√X
X
Ms MM Manyama √√ √√ √√
SocialMs Manyama
and Ethics Committee Meetings during the Year
Social
X Apology
Social
Dr S and
andEthics
Malinga EthicsCommittee
Committee Meetings √ √ during
Meetings duringthe
theYear
Year XX X
Dr
X Apology S Malinga X
Social and
√ Present
Social (inEthics Committee
person/via
and Ethics
Meetings during
teleconference) the Year
, ** Special meeting the Year 74
74
**Special
Social
X Apology Meeting
and EthicsCommittee
CommitteeMeetings
Meetingsduring
during the Year
√ Present (in person/via teleconference) , ** Special meeting 74
74
Report
Report of of the
theAudit
Auditand andRiskRiskCommittee
Committee
Report of the Audit and Risk Committee
As required
requiredby bythe
thePFMA,
PFMA, thethe
ARC ARC Report
Report is prepared
is prepared as prescribed
as prescribed by Treasury
by Treasury Regulations
Regulations 27line
27 and in andwith
in line
the
with the recommendations
recommendations of the Kingof IVthe KingonIVCorporate
Report Report onGovernance
Corporate for Governance forand
South Africa South Africaofand
its Code its Code
Governance
As required
Principles. Theby
ARC the PFMA,
was the ARC Report
constituted is prepared as prescribed by Treasury Regulations 27Section
and in 51
line
of Governance Principles. The ARCaswas a Committee
constituted of the
as aBoard to fulfillof
Committee statutory duties
the Board in terms
to fulfill of
statutory duties(1)in
(a)with
terms
the recommendations
(ii), Section 76 and
of Section Section
51 (1)
of of
the
(a) (ii),77Section
King
the PFMA,IV Report
76 and read on Corporate
together
Section with
77 of
Governance for South
theTreasury
PFMA, Regulation 27 and
read together
Africa and
Section
with 94its
Treasury (7)Code
of the
Regula-
of Governance
Companies asPrinciples. The ARC wasassigned
constituted it as athe
Committee of the Board to fulfill statutory duties in
tion 27 andAct,Sectionwell94as(7)
all of
othertheduties
Companies Act, toas by
well asBoard.
all other duties assigned to it by the Board.
terms of Section 51 (1) (a) (ii), Section 76 and Section 77 of the PFMA, read together with Treasury Regula-
tion
The ARC27pays
and attention
Section 94 to(7)
theofkey theaccounting
Companies Act,and
issues as well as all matters
key audit other duties assigned
and ensures to it byrisk
proactive themanagement
Board.
The ARC pays attention to the key accounting issues and key audit matters and ensures proactive risk
that appropriately caters for the environment that SENTECH operates in, while playing an essential role in ensuring
management
The
the ARC pays
integrity
that appropriately
and attention
transparency to of caters
thecorporate
key for
accountingthe environment that SENTECH operates in, while playing an
reporting.issues and key audit matters and ensures proactive risk
essential role in ensuring the integrity and
management that appropriately caters for the environment transparency of corporate reporting.
that SENTECH operates in, while playing an
Charter
essential role in ensuring the integrity and transparency of corporate reporting.
Charter
The ARC adopted a Charter that had been approved by the Board and the Committee confirms that it has complied
The
with ARC adopted
its statutory
Charter a Charterand
obligations that had been
Charter duringapproved byyear
the financial the under
Boardreview.
and theTheCommittee confirms that
Charter is continuously it has
reviewed
complied
inThe
lineARC with its statutory
withadopted
changes ainCharter obligations
legislation, and
that business
had been Charter during
circumstances
approved byand the financial
the corporate
Board theyear
andgovernance under review.
principles.
Committee Thethat
The
confirms Charter
Charter has
it has is
been reviewed during the period under
complied with its statutory obligations review in accordance
andINTEGRATED
Charter duringwith King IV principles
the financial and current best practices.
year under review. The Charter 74 is
SENTECH REPORT 2019/20
SENTECH INTEGRATED
2019/20
The ARC assists the Board in fulfilling its oversight responsibilities, in particular, with regard to the evalu-
ation of the adequacy and efficiency of accounting policies, internal controls and financial and corporate
The ARC assists
reporting the Board
processes, riskinmanagement
fulfilling its oversight responsibilities,
and compliance. in particular,
In addition, with assesses
the ARC regard to the
the effectiveness
evaluation of the
of
adequacy andauditors
the internal efficiency
andof the
accounting policies, and
independence internal controls and
effectiveness of financial and corporate
the external auditors. reporting processes,
risk management and compliance. In addition, the ARC assesses the effectiveness of the internal auditors and the
independence and Number
Composition and effectiveness of the external auditors.
of Meetings
At the Annual General Meeting (AGM) held on 24 August 2019, the Shareholder requested that the follow-
ing Non-Executive Directors remain members of the Committee in accordance with Section 94 (2) of the
Companies
At the AnnualAct, untilMeeting
General such time additional
(AGM) held on Directors
24 Augustwere
2019,appointed to the
the Shareholder Board when
requested thefollowing
that the membership
Non-
of the Committee
Executive Directors would
remain be reviewed.
members of the Committee in accordance with Section 94 (2) of the Companies Act,
until such time additional Directors were appointed to the Board when the membership of the Committee would
Thereviewed.
be committee consist of the following Non-Executive Directors (NED)
The committee
a) Ms consist
M. Manyama of the following Non-Executive Directors (NED)
(Chairperson).
b) Ms P. Sibiya.
c) a.Ms T.Ms M. Manyama (Chairperson).
Malaka.
b. Ms P. Sibiya
d) Mr L. Mtimde.
c. Ms T. Malaka
d. Mr L. Mtimde
Mr Mtimde resigned from the Board effective 30 November 2019. The Board passed a resolution on 28 Febru-
ary 2020 toresigned
Mr Mtimde reconstitute
from the Committee
the Board in accordance
effective 30 Novemberwith Section
2019. 94 (2)
The Board of thea Companies
passed Act, as below:
resolution November on 28
February
a) Ms M. 2020 to reconstitute
Manyama the Committee
(Chairperson in accordance with Section 94 (2) of the Companies Act, as below:
and NED).
a) Ms M. Manyama (Chairperson and NED).
b) a. Ms
b) Ms T.
T.Ms Malaka
Malaka (NED).
(NED).
M. Manyama (Chairperson and NED)
c) MsMs
c) b. P. Sibiya
P. Ms
Sibiya (NED).
(NED).
T. Malaka (NED)
d) c.
d) Ms M.Ms
Ms P. Sibiya
MTonjeni
Tonjeni (NED)
(NED).
(NED).
d. Executive
The Ms M. Tonjeni (NED) Chief Strategy Officer and Heads in charge of Internal Audit, Risk and Compliance
Directors,
The Executive
attend Directors,
all meetings byChief Strategyinvitation.
permanent Officer andTheHeads in charge
external of Internal
auditors attend ARCAudit,meetings
Risk andandCompli-
have
The
anceExecutive
attend Directors,
all Chief
meetings byStrategy Officer
permanent and Heads
invitation. in
The charge of
external Internal Audit,
auditors Risk
attend and
ARC Compliance
meetings attend
and haveall
unrestricted
meetings access toinvitation.
by permanent all Committees of theauditors
The external Board that dealARC
attend with audit and/or
meetings riskunrestricted
and have issues pertaining
accessto
to the
all
unrestricted
Company. of access
The to allauditors
external Committees of the Board
and internal thatare
auditors deal with audit
afforded and/or risk issues
an opportunity pertaining
to meet with the to
ARCthein
Committees the Board that deal with audit and/or risk issues pertaining to the Company. The external auditors
Company. The of
theinternal
absence external auditors and internal
management or asauditors are afforded an opportunity to meet with the ARC in
and auditors are affordedquarterly
an opportunity and
to when
meet withthe
theneed
ARC inarises.
the absence of management quarterly or
the absence
as and of management
when the need arises. quarterly or as and when the need arises.
The ARC held eight meetings during the year under review.
The ARCheld
The ARC heldfive
fivemeetings
meetings during
during thethe
yearyear under
under review.
review.
Table26:
Table
Table 26:
26: ARC
ARC
ARC Meetings
Meetings
Meetings
Name of Member 1 April 2019 - 31 March 2020
24-Apr 21 May 19-Jul 22-Oct 21-Jan
Ms M. Manyama √ √ √ x √
*
Ms T. Malaka √ √ √ √ √
Ms L. Mtimde* x √ √ x N/A
Ms M. Tonjeni# N/A N/A N/A N/A N/A
Ms P. Sibiya`` √ √ √ √ √
** Resigned
Resigned as
asNED
NEDeffective 30 November
effective 2019
30 November 2019 28 February 2020
`# Appointed
`# Appointed
CommitteeCommittee
member effectivemember
28 Februaryeffective
2020
`# Appointed Committee member effective 28 February 2020
XX Apology Apology
X Apologyin person and or via teleconference
√√ Present Present in person and or via teleconference
√ Present in person and or via teleconference
N/AMeeting
N/A
N/A Meeting
Meeting
held prior toheld
held priorpto r i appointment,
o ror tfollowing
appointment, o a p presignation
o ior
n tfollowing
maseanNED
t , ororeconstitution
r following
resignation resignation
of Committee
as as a NED or reconstitution
membership
a NED or reconstitution of Committee membership
of Committee membership
The main activities undertaken by the ARC during the year under review are summarised below:
External Audit
The ARC is responsible for recommendation of appointment and oversight of the external
auditors of the Company. During the 2019/20 financial year, the ARC:
a) considered the 2018/19 Draft AFS with management and assurance providers, and recommended
AFS to the Board; 74 the Dra
b) concurred that the adoptionSENTECH INTEGRATED
of the going REPORT
concern premise 2019/20
in preparation of the financial statements was
The main activities undertaken by the ARC during the year under review are summarised below:
External Audit
The ARC is responsible for recommendation of appointment and oversight of the external auditors of the
Company. During the 2019/20 financial year, the ARC:
a. Considered the 2018/19 Draft AFS with management and assurance providers, and 2018/19 recommended
the Draft AFS to the Board;
b. Concurred that the adoption of the going concern premise in preparation of the financial statements was
appropriate;
c. Recommended the 2018/19 Integrated Annual Report to the Board;
d. Recommended Quarterly Business Performance Reports to the Board;
e. Recommended appointment of the external auditor to the Board for approval by the Shareholder
representative at the AGM;
f. Reviewed, deliberated and approved the External Audit Annual Plan and related scope of work for the year
ending 31 March 2020, with specific reference to the proposed methodology, execution period and fee;
g. Considered with management the quality and effectiveness of the external audit process, areas of concern
and the improvement plans being developed to mitigate identified risks;
h. Reviewed significant accounting practices, judgements and estimates adopted by the Company in the
application of the International Financial Reporting Standards and found those to be appropriate;
i. Reviewed a report from the external auditor concerning the effectiveness of the Company’s internal control
environment and ICT Governance;
j. Considered the 2019/20 Procurement Plan;
k. Recommended the appointment of external auditors to the Shareholder; and
l. Noted progress reports on the 2018/19 Management Letter Points.
Internal Audit
The IAF performs an independent assurance function and forms part of the third line of defence as set out in
the Combined Assurance Model of the Company. The Head: Internal Audit reports functionally to the ARC and
administratively to the CEO. With respect to the ARC’s evaluation of the adequacy and effectiveness of internal
controls, the ARC receives reports from the EIA. The ARC assesses the effectiveness of the IAF and approves the
Annual Audit Plan.
During the 2019/20 financial year, the ARC:
a. Approved the 2018/19 Internal Audit Plan and rolling three-year plan;
b. Reviewed and approved the Internal Audit Charter;
c. Considered Internal Audit Quarterly Reports relating to the effectiveness of the Company’s internal control
environment, systems and processes together with the adequacy and appropriateness of the related
Management’s Corrective Action Plans;
d. Considered the effectiveness of the internal audit function;
e. Reviewed the internal audit resources to ensure internal audit is able to discharge its functions;
f. Considered Hotline Reports and progress in addressing reported incidents; and
g. Received no complaints relating to the accounting practices and internal audit of the Company, and the
content or auditing of its financial statements, the internal financial controls of the Company or any other
related matters.
Having considered, analysed, reviewed and debated information provided by management and Internal Audit
and the external auditors, the ARC concluded that the internal controls have been effective in all material aspects
throughout the year under review.
Financial Reporting SENTECH INTEGRATED REPORT 2019/20
The ARC received regular reports from management regarding the performance of the Company, the tracking
and monitoring of key performance indicators, details of budgets, forecast, capital expenditure, and reliability
of management information used during the financial reporting process. The ARC monitored consistency in the
application of the accounting and financial policies of the Company, and compliance with accounting standards.
75
Risk Management
The Board owns the Risk Management Policy of the Company and has delegated the responsibility to the ARC to
oversee both risks and opportunities and to ensure that they are appropriately identified, monitored, managed
and appropriately provisioned within the Company’s defined risk appetite. The ARC Charter defines the minimum
requirements for the Committee to give effect to its risk oversight responsibilities. The ARC receives regular reports
on issues in the Company’s Risk Register and regular reports on compliance matters from the Compliance and Risk
functions. The ARC has been involved in various key risk areas and has satisfied itself that the following areas had
been appropriately addressed and these included:
a. Financial reporting risks;

b. Internal financial controls;
c. Fraud risks as related to financial reporting; and
d. IT risks as related to financial reporting.
Recommending the following for approval by the Board:
a. Risk Management Reporting Framework;

b. Risk Management Plan;
c. Combined Assurance Plan; and
d. Risk Appetite and Tolerance Level.
The ARC considered the material risks within the Company and changes to the risk profiles during the year. New and
emerging risks, including stakeholder management risks, were addressed.
Provided an oversight to the Board in discharging its duties relating to the Company’s system of risk management
and compliance. The ARC received internal audit reports regarding the adequacy and effectiveness of the Company’s
information system controls. The ARC is satisfied that the mitigation actions for the identified risks have been
effective. The Strategic Risks flowing from our 2019-2022 Corporate Plan influenced the pertinent matters addressed
by the Board. The ARC will focus on risk management outcomes as articulated in King IV.
Internal Financial Control
a. Reviewed the effectiveness of the Company’s system of internal financial control, including receiving
assurance from management, internal audit and external audit;
b. Reviewed significant issues raised by the internal audit and audit processes;
c. Approved internal control and compliance activities; and
d. Reviewed policies and procedures for preventing and detecting fraud.
Based on the processes and assurances obtained, the ARC believes that the significant internal financial controls are
effective.
Other Matters
a. Recommended to the Board the reviewed Delegation of Authority;

b. Reviewed proposed changes to the ARC Charter and Annual Work Plan for recommendation to the Board;
and
c. Received reports on fraud prevention.
76
sustainable and effective compliant regulatory operating model underpinned by a direct link to the
c) received reports on fraud prevention.
strategic benefits of establishing a winning regulatory environment. ICASA has not found SENTECH to not
be compliant on any regulations.
Regulatory Compliance
Regulatory Compliance
The ARC complied with all applicable legal and regulatory responsibilities. It is crucial to deliver a sustain-
Finance Function
able
Theand effective
ARC compliedcompliant regulatory
with all applicable operating
legal model underpinned
and regulatory responsibilities.byItaisdirect
cruciallink to the strategic
to deliver ben-and
a sustainable
efits of establishing
effective compliant a winning
regulatory regulatory
operating environment.
model ICASA
underpinned by has
a not
direct found
link to SENTECH
the strategic
The ARC believes that the accounting practices adopted are effective, based upon the processes and to not be
benefits compliant
of establishing
on aany regulations.
winning
assurance regulatory environment. ICASA has not found SENTECH to not be compliant on any regulations.
obtained.
Finance
Financial
Finance Function
Statements
Function
The ARC believes that the accounting practices adopted are effective, based upon the processes and as-
The ARC believes that the accounting practices adopted are effective, based upon the processes and assurance
surance
The obtained.
ARC recommended the Group and Company Annual Financial Statements to the Board for approval,
obtained.
based on process and assurances obtained.
Financial Statements
The ARC recommended the Group and Company Annual Financial Statements to the Board for approval,
based
OnThe on
ARCprocess
behalf of and assurances
recommended
the Audit the
and Group
Risk obtained.
and Company Annual Financial Statements to the Board for approval, based on
Committee.
process and assurances obtained.
On behalf of the Audit Committee.
On behalf of the Audit Committee.
___________________
Ms Maureen Manyama
Ms Maureen Manyama
_____________________________
Chairperson of ARC
Chairperson of ARC
Ms Maureen Manyama
17 August 2020
Chairperson of ARC
17 August 2020
17 August 2020
79
77
Combined Assurance
Combined Assurance
The combined assurance model is an essential and fundamental element relied on by the
Combined
Audit and Risk Assurance
Committee (ARC) and the Board in forming their views of the adequacy of
Therisk
combined assurance
management andmodel
internalis ancontrol
essentialin and
the fundamental
organisation.element
The ARC reliedison by the Auditforand Risk
responsible
Committee
The combined
overseeing (ARC)theand
assurance the Board
model
effectivenessis anin essential
forming
of their
and
the combined viewsassurance
fundamentalof the adequacy
element ofonrisk
reliedwhich
plan management
by the Audit and Risk
is documented and ininternal
Committee
control
accordance with the Combined Assurance Framework that is aligned to KING IV report on assur-
(ARC) in
and the
theorganisation.
Board in The
forming ARC
their is responsible
views of the for overseeing
adequacy of the
risk effectiveness
management andof the combined
internal control in the
ance plan which
organisation.
corporate The isARC
documented
governance. is responsiblein accordance
for overseeingwiththetheeffectiveness
Combined Assurance
of the combinedFramework that is
assurance aligned
plan whichtois
documented
KING IV reportinonaccordance
corporate with the Combined Assurance Framework that is aligned to KING IV report on corporate
governance.
governance.
The combined assurance model is integrated in the Risk Management process and
Therecognises three levels
combined assurance model ofis assurance
integrated inas theset
Riskout on the diagram
Management process and below. Combined
recognises three levels
The combined assurance
assuranceasassists
of assurance set out on model
thethe ARC is integrated in
in identifying
diagram the
below. Combined Risk Management
duplication process
in assurance
assurance and
assists thework recognises
ARC in three levels
or identifying
potential dupli-of
assurance
assurance as set out on
shortfalls, the
and diagram below.
developing Combined
improvement assurance assists the ARC in identifying duplication in
cation in assurance work or potential assurance shortfalls,plans for those improvement
and developing areas identified. plansThefor those
assurance
model work
guidesor potential assurance shortfalls, and developing improvement
on theplans for those areas identified. The
areas
model
identified.
guides
Theassurance
assurance
model guides
providers
providers
to
assurance
reach
to providers
consensus
reach
on
consensus
to key
the
reach consensus
risks faced by
key
on therisks
SENTECH
key
and
faced
risks
aids
faced
in
byby SEN-
reducing the
TECHSENTECH
and aids and
in aids in the
reducing reducing
likelihoodthe likelihood that significant
that significant risks remain risks remain unidentified.
unidentified.
likelihood that significant risks remain unidentified.
SENTECH
The Combined
following Assurance guide
key principles Model and inform SENTECH’S combined assurance approach:
The following key principles guide and inform SENTECH’S combined assurance approach:
• Identification
•The
• following
of key
significant
Identification
risks risks
ofprinciples
needing
significantguide andassurance;
inform
needing SENTECH’S combined assurance approach:
assurance;
• Identification of assurance
Identification of providers
significant most
risks suited
needing
• • Identification of assurance providers most suited to assurance;
provide
to provideadequate
adequateassurance;
assurance;
• Delivering Identification
qualityquality
• • Delivering of
assuranceassurance
results theproviders
Board most
can suited
rely on; and
assurance results the Board can rely on; and to provide adequate assurance;
• Reporting Delivering
• • Reporting quality
and escalating assurance
assurance results
results to the
the Board
required can rely
level, on;
thus, and
and escalating assurance results to the required level, thus, ensuring therequired
ensuring the attention
required attention and
and focus Reporting
to to
focus address and escalating
addresssignificant assurance
significantmatters.
matters. results to the required level, thus, ensuring the
required attention and focus to address significant matters.
80

78
Board of Directors Report
Introduction
The Directors have the pleasure in presenting their report, which forms part of the audited Annual Financial Statements
of SENTECH SOC Limited for the year ended 31 March 2020. This report and the Annual Financial Statements comply
with the requirements of the PFMA, Sentech Act and the Companies Act. The Board is the Accounting Authority in
terms of section 49 (2)(a) of the PFMA.
Nature of Business
The Company is responsible for the provision of broadcasting signal distribution services as a “common carrier” to
licensed television and radio broadcasters.
Registration Details
The Company’s registration number is 1990/001791/30 and its business and postal address are set out below:
Business Address: Sender Technology Park

Octave Street
Radiokop
Postal Address: Private Bag X06

Honeydew
2040
Ownership
The Company is wholly owned by the Government of the Republic of South Africa as represented by the Minister of
Communications and Digital Technologies.
Memorandum of Incorporation
The Company’s Memorandum of Incorporation (MOI) is aligned with the provisions of the Companies Act and was
approved by the Shareholder Representative. The approved MOI was subsequently Accepted and placed on file by
the Companies and Intellectual Property Commission (CIPC) ON 14 May 2014.
Shareholder’s Compact
The Shareholder Compact includes KPIs that are revised annually by agreement between the Shareholder
Representative and the Board of Directors and serves as the performance monitoring framework for the Company.
Performance against the 2019/20 Shareholder Compact is outlined in pages 41-43 of this report as required by
Section 55 (2) of the PFMA.
External Auditors
Ngubane and Co is the External Auditor of the Company.
Directors’ Interests
The Directors had no interest in any third party or company responsible for managing any of the business activities
of the Company. Non-Executive Director Magatho Mello resigned in June 2019 as the Chairperson and Member of
the Board due to his employment with MTN as General Manager: Large Enterprise – Enterprise Business Unit. Non-
Executive Lumko Mtimde resigned in November 2019 after he was appointed as a Special Advisor of the Minister in
the Presidency’s Office.
79
Public-Private Partnerships
The Company did not enter into any public-private partnerships during the 2019/20 financial year.
Annual Financial Statements
The Group Financial Statements comprise of consolidated Annual Financial Statements of four subsidiaries (Infohold,
Infosat, Vivid Multimedia and SENTECH International (Pty) Limited) that are wholly owned by SENTECH SOC Limited.
These subsidiaries are dormant.
Basis of Presentation
The Group Financial Statements and Company Financial Statements were prepared in accordance with IFRS, the
Companies Act and PRMA.
IFRS
The application of IFRS is contrary to Treasury Regulation 28 which requires that Generally Recognised Accountability
Practice (GRAP) be used. The National Treasury approved a departure from Treasury Regulation 28.1.6, pending a
review of GRAP by the Office of the Accountant-General (OAG) and Accounting Standards Board (ASB). This approval
is issued in terms of Section 79 of the PFMA and remains in effect until further notice. The Financial Statements for
this reporting period were prepared on a basis consistent with the Financial Statements of the previous financial
year.
Financial Performance
The Group Financial performance is summarised in the CFO’s report.
Borrowings
In terms of the Group’s MOI, the Group may only borrow money, provided such borrowing is in accordance with the
requirements of Section 22 of the PFMA. No borrowings were incurred during the year under review.
Dividends
There were no dividends declared in respect of the year ended 31 March 2020.
Solvency Ratios
The Liquidity ratio of 96% and Solvency Ratio of 86,7% are favourable. This indicate that SENTECH will easily be able
to settle its short- and long-term liabilities. These ratios also support the Board’s going concern assessment.
Events Subsequent to the Date of Financial Position
There were no adjusting or non-adjusting events identified subsequent to the date of financial positions identified.
80
There
Eventswere no adjusting
Subsequent or non-adjusting
to the events
Date of Financial identified subsequent to the date of financial
Position
positions identified.
There were no adjusting or non-adjusting events identified subsequent to the date of financial positions
identified.
Going Concern
Going Concern
Going Concern
The
The Directors
Directorsconfirm
TheDirectors confirm
confirm that they
that
that are
they
they satisfied
areare that
thatthe
satisfied
satisfied theCompany
that hashas
the Company
Company adequate resources
has adequate
adequate toresources
resources to continue
to continue busi- business for the
continue business
ness for(12)
the twelvefor the
(12) twelve
months (12)
periodmonths period from the date of this report. For this
twelve months period from thefrom
datetheofdate
thisofreport.
this report. For this
For this reason,
reason, theycontinue
they continue to
toadopt
adopt the going concern
reason,
the goingtheyconcern
continuebasis
to adopt the going the
concern basis for preparing the Financial Statements
basis for preparing the for preparing
Financial Financial
Statements asStatements
as confirmed in the Statement of Responsibility by the Board.
confirmedasinconfirmed in the Statement
the Statement of Respon-
of Responsibility by the Board.
sibility by the Board.
__________________________
__________________________
Dr
DrSandile BethuelMalinga
Malinga
___________________________
Sandile Bethuel
Dr Sandile
ChairpersonBethuel
of Malinga
the Board
17August
17 August 2020
2020
17 August 2020
83
81
Statement of Company Secretary
Statement of Company Secretary
I Statement
certify thatthat
I certify
ofSOC
SENTECH Company
SENTECH Limited
SOC Limited
Secretary
has filled
hasallfiled
its returns
all itsand notices
returns andfornotices
the yearfor
ended
the31 March
year 2020,31 March
ended
as are required of a public company in terms of section 88(2) (e) of the Companies Act, No. 71 of 2008,
I 2020,
andcertify as
that such
are
that required
SENTECH
returns
of aLimited
and SOC
public
notices
company
hasbest
are, to the
inmyterms
filedofall of section
itsknowledge
returns and 88(2) for
andnotices
(e) correct
belief, true,
of the
the yearCompanies
andended
Act, No.
up to 31 March 2020, as are
71 of 2008,
required
date. of a and that
public such returns
company in termsandofnotices
sectionare,88(2)to(e)
theofbest of my knowledge
the Companies Act, No.and belief,
71 of 2008,true,
and that such
correctand
returns andnotices
up to date.
are, to the best of my knowledge and belief, true, correct and up to date.
_____________________
Advocate
AdvocateSelaelo
SelaeloMatsane
Matsane
______________
Company Secretary
Company Secretary
Advocate
17 Selaelo Matsane
August 2020
17 August 2020
Company Secretary
17 August 2020
84
82
GROUP AND COMPANY ANNUAL FINANCIAL STATEMENTS
Head Office Telephone: 011 471 4400

Sender Technology Park (STP) Call Center: 0860 736 832
Octave Street International: +27 11 471 4595
Radiokop, 2040
E-mail: support@sentech.co.za
Postal Address www.sentech.co.za
Private Bag X06
Honeydew, 2040
83
AL FINANCIAL STATEMENT
nsibilities
GROUP and Approval
ANNUAL FINANCIAL STATEMENT
Board’s Responsibilities and Approval

�� ’��
��
Board’s Responsibilities and Approval
��’�� ’��
��
��
��
��
��
The Group’s
�� Board
�� is responsible
�� for the
�� preparation
�� and fair presentation
�� of the Group’s Annual Financial Statement
��
��
and ��
the ��
Annual ��
Financial ��
Statements ��
of SENTECH ��
SOC ��
Limited,
�� ’��
compromising
��
the statements of financial position
��
at 31 March 2020, and the statements of comprehensive income, changes in equity and cash flows for the year then
��’��
�� ’��
ended, and the notes to the financial statements, which include a summary of significant accounting policies and
��’��
��
� other explanatory notes, in accordance with International Financial Reporting Standards (IFRS) and the requirements
��
of the Companies Act and��
�� the PFMA
�� of South
�� Africa.
�� In addition,
�� the Group’s
�� Board is responsible
�� for preparing the
��
Board’s Report.
��
��
��
��
The Board is also responsible for such internal controls as the Board determines is necessary to enable the
��
preparation of Financial Statements that are free from material misstatement, whether due to fraud or error, and for
��’��
�
maintaining adequate accounting records and effective systems of risk management as well as the preparation of
��
��’��
the supplementary schedules included in these Financial Statements.
��
��’��’��
�
The Board has assessed the Company and Group’s ability to continue as a going concern and there is no reason to
��’��’��
��’��
��’��
��
believe that the business will not be a going concern in the year ahead.
��
�
� The Annual
the Group
Auditor is responsible for reporting on whether the Group’s Financial Statements and Company’s Financial
Financial Statements and Company Annual Financial
Statements
Approval of the andGroup
Company’s
Annual Financial Statements
Financial Statementsare fairly presented Annual
and Company in accordance
Financialwith the applicable reporting
framework.
Statements
��
��
Approval of the Group Annual Financial Statements and Company Annual Financial Statements.
��
��
��
�
The Group Annual Financial Statements and Annual Financial Statement of SENTECH SOC Limited, as identified in
� the first paragraph were approved by the Board on 17 August 2020 and are signed on its behalf by:
�
___________________ _____________________
Chief Executive Officer
____________
______________________________ Chairperson________________________________
of the Board
________________________________
e Officer MrExecutive
Chief Mlamli BooiOfficer Dr Sandile
Chairperson of Malinga
the Board
i Mr Mlamli Booi Dr Sandile Malinga
Dr Sandile Malinga
17 August 2020 17 August 2020
INTEGRATED ANNUAL REPORT 2020
84

INDEPENDENT
AUDITOR’S REPORT TO PARLIAMENT AND THE
SHAREHOLDER ONAUDITOR’S
INDEPENDENT SENTECH SOC LIMITED
REPORT TO PARLIAMENT AND THE SHAREHOLDER ON
SENTECH SOC LIMITED
REPORT ON THE AUDIT OF CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
REPORT ON THE AUDIT OF CONSOLIDATED AND SEPARATE FINANCIAL
STATEMENTS
Opinion
Opinion
1. We have audited the consolidated and separate financial statements of Sentech SOC Limited and its subsidiaries
(the group)
1. Weset have
out on pages the
audited 90 toconsolidated
145, which comprise the consolidated
and separate and separate
financial statements statements
of Sentech SOCof financial
position asLimited
at 31 March
and its subsidiaries (the group) set out on pages 90 to 146, which comprise the income,
2020, the consolidated and separate profit or loss and other comprehensive
statementsconsolidated
of changes inand
equity, and cash
separate flow statements
statements for the
of financial year then
position ended,
as at as well2020,
31 March as thethe
notes to the
consolidated and separate
consolidated andfinancial
separate statements, including
profit or loss a summary
and other of significant
comprehensive accounting
income, statementspolicies.
of
changes in equity, and cash flow statements for the year then ended, as well as the notes
2. In our opinion,
to thethe consolidated
consolidated andand separate
separate, financial
including statements
a summary of present fairly,
significant in all material
accounting respects, the
policies.
consolidated and separate financial position of the Sentech SOC Limited as at 31 March 2020, and their financial
performance andopinion,
2. In our cash flows
the for the year then
consolidated and ended
separatein financial
accordance with International
statements Financial
present fairly, in all Reporting
material
Standards and respects, theofconsolidated
the requirements and separate
the Public Finance financial
Management Actposition
of SouthofAfrica,
the Sentech
1999 (Act SOC
No. 1 of 1999)
Limited as at 31 March 2020, and their financial performance and cash flows
(PFMA) and the Companies Act of South Africa, 2008 (Act No. 71 of 2008) (the Companies Act). for the year
then ended in accordance with International Financial Reporting Standards and the
Context for therequirements
opinion of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of
1999) (PFMA) and the Companies Act of South Africa, 2008 (Act No. 71 of 2008) (the
3. We conducted our audit
Companies in accordance with the International Standards on Auditing (ISAs). Our responsibilities
Act).
under those standards are further described in the auditor’s responsibilities for the audit of the consolidated and
separate financial
Context forstatements section of this auditor’s report.
the opinion
Head Office
4. We are 3.independent
We conductedof the
ourgroup
audit ininaccordance
accordancewithTelephone:
with
thesections 011
290
Internationaland 471 4400
291 of
Standards theAuditing
on Independent
(ISAs).Regulatory
Board for Auditors’
Sender Technology Code of professional
Park (STP)
Our responsibilities conduct for
under those standards Registered
Call Center: Auditors
0860
are further (Revised January
736 832
described 2018), parts 1 and 3 of
in the auditor’s
the Independent Regulatory
responsibilities for Board for of
the audit Auditors’ Code of Professional
the consolidated and separateConduct forstatements
financial Registered section
Auditors (Revised
Octave
NovemberStreet
2018)
of (togetherreport.
this auditor’s the IRBA Codes) and other International:
independence+27 11 471
requirements 4595 to performing
applicable
Radiokop, 2040 statements in South Africa. We have fulfilled our other ethical responsibilities, as applicable
audits of financial
in accordance with the IRBA Codes and in accordance with other
E-mail: ethical requirements applicable to performing
support@sentech.co.za
audits in South Africa. The IRBA Codes are consistent with the corresponding sections of the International
Postal
EthicsAddress
Standards Board for Accountants’ Code ofwww.sentech.co.za
ethics for professional accountants and the International
0202 TROPER LAUNNA DETARGETN I
Private Bag X06
Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including
Honeydew, 2040
85
International Independence Standards) respectively.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material uncertainty relating to financial sustainability
6. We draw attention to the matter below. Our opinion is not modified in respect of this matter.
Sustainability risk due to lack of diversification
7. We draw attention to note 34 in the consolidated and separate annual financial statements, which indicates
that majority of the public entity’s revenue is earned from one customer which has been experiencing cash flow
challenges and this indicates the presence of sustainability risk due to lack of diversification.
Emphasis of matters
8. We draw attention to the matters below. Our opinion is not modified in respect of these matters.
Expected credit losses – Trade debtors
9. We draw attention to note 9 in the consolidated and separate annual financial statements, which indicates
that expected credit losses amounting to R56 159 000 were raised on the trade debtors balance. More than 80%
of the ECL pertains to community broadcasters. Sentech has been experiencing challenges with collecting
amounts owed by these Community Broadcasters.
Correction of prior period error
10. As disclosed in note 36 to the consolidated and separate annual financial statements, the corresponding figures
for 01 April 2018 and at 31 March 2019 have been restated due to a prior period error in the current year.
Adoption of IFRS 16
11. Due to the implementation of IFRS 16, a lease liability of R1,580 billion was introduced to the statement of
financial position in the current year. This has resulted in the introduction of interest-bearing debt. It should be
noted however that the liability is offset by a corresponding asset recognised at R1,206 billion.
Responsibilities of accounting authority for the financial statements
12. The board of directors, which constitutes the accounting authority, is responsible for the preparation and fair
presentation of the consolidated and separate financial statements in accordance with International Financial
Reporting Framework and the requirements of the PFMA and the Companies Act and for such internal control
0044 1determines
as the accounting authority 74 110 :isen ohpeletoTenable the preparation of consolidated
necessary ecfiand
fOseparate
daeH
financial statements that are free from material misstatement, whether due to fraud or error.
238 637 0680 :retneC llaC )PTS( kraP ygolonhceT redneS
13. In preparing the
595consolidated
4 174 11 and72+separate
:lanoifinancial
tanretnstatements,
I the accounting authorityteiseresponsible
rtS evatcfor
O
assessing the group and company’s ability to continue as a going concern, disclosing, as applicable, matters
relating to going concern and using the going concern basis of accounting unless the 0 402 ,pokauthority
accounting oidaR
azto.oliquidate
either intends c.hcetthe
negroup
s@tror
optopcease
us :loperations,
iam-E or has no realistic alternative but to do so.
az.oof
Auditor’s responsibilities for the audit c.the
hcegroup
tnesfinancial
.www statements sserddA latsoP
INTEGRATED ANNUAL REPORT 2020 60X gaB etavirP
14. Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial
040to2issue
statements as a whole are free from material misstatement, whether due to fraud or error, and ,wean
dyauditor’s
enoH
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these group
financial statements.
15. A further description of our responsibilities for the audit of the consolidated and separate financial statements
is included in the annexure to this auditor’s report.
86
REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT
Introduction and scope
16. In accordance with the Public Audit Act of South Africa of 2004 (PAA) and the general notice issued in terms
thereof, we have a responsibility to report on the usefulness and reliability of the reported performance information
against predetermined objectives for selected strategic objectives presented in the annual performance report.
We performed procedures to identify material findings but not to gather evidence to express assurance.
17. Our procedures address the usefulness and reliability of the reported performance information, which must
be based on the approved performance planning documents of the public entity. We have not evaluated
the completeness and appropriateness of the performance indicators / measures included in the planning
documents. Our procedures do not examine whether the actions taken by the public entity enabled service
delivery. Our procedures also do not extend to any disclosures or assertions relating to planned performance
strategies and information in respect of future periods that may be included as part of the reported performance
information. Accordingly, our findings do not extend to these matters.
18. We evaluated the usefulness and reliability of the reported performance information in accordance with the
criteria developed from the performance management and reporting framework, as defined in the general
notice, for the following selected objectives presented in the annual performance report of the public entity for
the year ended 31 March 2020:
Strategic Objectives Pages in the annual performance report
Sustainable business growth 41

Create digitally connected societies 41 - 42
Achieve excellent customer and stakeholder
42 - 43
satisfaction
19. We did not raise any material findings on the usefulness and reliability of the reported performance information
for these objectives.
REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION

Introduction and scope
20. In accordance with the PAA and the general notice issued in terms thereof, we have a responsibility to report
Head Office
material findings on the public entity compliance Telephone:
with specific 011 471in 4400
matters key legislation. We performed
Sender Technology
procedures Park but
to identify findings (STP) Call Center: 0860 736 832
not to gather evidence to express assurance.
Octave
21. We didStreet International:
not identify any material findings on compliance +27
with the specific 11 471
matters in key4595
legislation set out in the
Radiokop, 2040
general notice issued in terms of the PAA.
OTHER INFORMATION E-mail: support@sentech.co.za

Postal Address
22. The accounting authority is responsible for thewww.sentech.co.za
other information. The other information comprises the
Private Bag included
information X06 in the annual report, which includes the directors’ report, the audit committee’s report and
the company2040
Honeydew, secretary’s certificate as required by the Companies Act. The other information does not include
the group’s financial statements, the auditor’s report and those selected strategic objectives presented in the
annual performance report that have been specifically reported in this auditor’s report.
23. Our opinion on the financial statements and our findings on the reported performance information and
compliance with legislation do not cover the other information and we do not express an audit opinion or any
form of assurance conclusion thereon.
24. In connection with our audit, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the consolidated and separate financial statements and the
selected objectives presented in the annual performance report, or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
87
OTHER REPORTS
INTERNAL CONTROL DEFICIENCIES
25. We considered internal control relevant to our audit of the consolidated and separate financial statements,
26.reported
We draw attention to the following engagements conducted by various parties which had,
performance information and compliance with applicable legislation; however, our objective was not
toorexpress
could any
have, anofimpact
form on on
assurance theit.matters reported in the public entity’s financial statements,
reported performance information, compliance with applicable legislation and other
related
26. We did notmatters. These
identify any reports
significant did not form
deficiencies part of
in internal our opinion on the financial statements
control.
or our findings on the reported performance information or compliance with legislation.
OTHER REPORTS
Audit
27. We related services
draw attention to the following engagements conducted by various parties which had, or could have, an
impact on the matters reported in the public entity’s financial statements, reported performance information,
27.compliance
Agreed upon procedures
with applicable engagements
legislation werematters.
and other related performed to review
These reports did not the conversion
form part of our opinion
adjustments from International Financial Reporting Standards (IFRS) to Generally with
on the financial statements or our findings on the reported performance information or compliance
Recognised Accounting Practice (GRAP) on the Treasury pack to ensure conversion
legislation.
Auditadjustments are captured correctly for consolidation purposes. No material misstatements
related services
were identified. The report covered the period ending 31 March 2020.
28. Agreed upon procedures engagements were performed to review the conversion adjustments from International
AUDITOR
Financial TENURE
Reporting Standards (IFRS) to Generally Recognised Accounting Practice (GRAP) on the Treasury pack
to ensure conversion adjustments are captured correctly for consolidation purposes. No material misstatements
28.were identified.
In terms of The
thereport
IRBAcovered the period ending
rule published 31 March 2020.
in Government Gazette Number 39475 dated
4 December
AUDITOR TENURE 2015. We report that Ngubane and Company (Johannesburg) has been the
auditor of Sentech SOC Limited for 2 years.
29. In terms of the IRBA rule published in Government Gazette Number 39475 dated 4 December 2015. We report
that Ngubane and Company (Johannesburg) has been the auditor of Sentech SOC Limited for 2 years.
Ngubane & Co. (Jhb) Inc

Ngubane
Thomas&Nkomozephi
Co. (Jhb) Inc
DirectorNkomozephi
Thomas
Registered Auditor
21 August 2020
Director
Midrand Auditor
Registered
21 August 2020
0044 174 110 :enohpeleT ecfifO daeH
Midrand 238 637 0680 :retneC llaC )PTS( kraP ygolonhceT redneS
5954 174 11 72+ :lanoitanretnI teertS evatcO
0402 ,pokoidaR
az.oc.hcetnes@troppus :liam-E
az.oc.hcetnes.www sserddA latsoP
0402 ,wedyenoH
88
88
ANNEXURE – AUDITOR’S RESPONSIBILITY FOR THE AUDIT
1. As part of an audit in accordance with the ISAs, we exercise professional judgement and maintain professional
scepticism throughout our audit of the group financial statements, and the procedures performed on reported
performance information for selected objectives and on the public entity’s compliance with respect to the
selected subject matters.
FINANCIAL STATEMENTS
2. In addition to our responsibility for the audit of the group financial statements as described in this auditor’s
report, we also:
• Identify and assess the risks of material misstatement of the group financial statements whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud 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
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the public entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the board of directors, which constitutes the accounting authority.
• Conclude on the appropriateness of the board of directors, which constitutes the accounting authority’s use
of the going concern basis of accounting in the preparation of the financial statements. We also conclude,
based on the audit evidence obtained, whether a material uncertainty exists relating to events or conditions
that may cast significant doubt on the ability of groups to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate,
to modify my opinion on the financial statements. Our conclusions are based on the information available
to me at the date of this auditor’s report. However, future events or conditions may cause a public entity to
cease operating as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and determine whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
Head
Head Officewithin the group to express an opinionTelephone:
Office
activities
Telephone: 011financial
011
on the consolidated
471 4400
471 4400
statements. We are responsible
Sender
Sender Technology
forTechnology Park (STP)
Park (STP)
the direction, supervision and performance Call
Call Center:
Center:
of the 0860
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Octave Street
Octave Street
audit opinion. International: +27
International: +27 11 11 471
471 4595
4595
Radiokop, 2040
Radiokop, 2040
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE E-mail: support@sentech.co.za
E-mail:
Postal
Postal
3. Addresswith the accounting authority regarding,
Address
We communicate www.sentech.co.za
www.sentech.co.za
among other matters, the planned scope and timing
00220022 TTR
of the Bag
Private
Private audit and
Bag X06 ROOPPEER
identify during our audit.
Honeydew, 2040 2040
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Honeydew,
4. We also confirm to the accounting authority that we have complied with relevant ethical requirements regarding
independence, and communicate all relationships and other matters that may reasonably be thought to have a
bearing on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.

Statement
Statement of
of Financial
Financial
STATEMENT Position
Position POSITION
OF FINANCIAL
As at 31 March GROUP & COMPANY
Figures in Rand thousand Note 2020 2019 Restated 2018 Restated
ASSETS
Non-Current Assets
Property Plant and Equipment 6A 1,107,129 1,136,319 1,030,910
Intangible assets 6B 20,824 25,513 29,099
Deferred tax 13 37,504 -
Right of Use assets 6C 1,206,104 - -
2,371,561 1,161,832 1,060,009
Current Assets
Inventories 8 54,693 66,435 82,305
Tax 14 953 16,220 12,687
Trade and other receivables 9 343,255 400,757 297,931
Cash and cash equivalents 10 1,516,393 1,112,407 916,149
1,915,294 1,595,819 1,309,072
Total Assets 4,286,855 2,757,651 2,369,081
EQUITY
Share capital 11 (75,892) (75,892) (75,892)
Reserves (776,015) (776,015) (667,868)
Accumulated profit (1,443,886) (1,482,144) (1,281,826)
(2,295,793) (2,334,051) (2,025,586)
LIABILITIES
Non-current liabilities
Employee Benefits 12 (11,434) (25,984) (19,588)
Deferred Tax 13 - (70,785) (53,073)
Lease Liability 6C (1,466,693) - -
(1,478,127) (96,769) (72,661)
Current liabilities
Tax Payable 00440107444 111704 :1e1n0o:h14 pneolheT (4,518) - ecfifO d- faOeH
e p e l e T ecfi daeH
Trade and other payables 15 (136,927) (150,235) (146,548)
238 63378 06638700:6re tn:er6C
eCtnlleaC C lla(111,301) ) P T S ( k r a P y g o l o n h c e
)PTS( kra- P ygolonhce-T redneST r e d n e S
Current portion of lease2liability 80 C
59545197544 11174721+
Deferred income 1 7:l2a+
no:iltaan16
norietatnnIret(214,189)
nI (130,368) teer(94,286)
ttSeeervtaStceO vatcO
Provisions 17 (46,000) (46,228) 0 4 0 2 , p o k
0(30,000) o
402 ,poko i d a RidaR
az.oca.zh.coect.h
ncees@
tntero
s@ pp truosp:pliuasm:-liEam(512,935)
-E (326,831) (270,834)
Total liabilities w.w(1,991,062) (423,600) sserd (343,495)
az.oca.zh.coect.h ncees.tw n w
e s w w ssdeArdladtA solaPtsoP
INTEGRATED ANNUAL
INTEGRATED REPORT
ANNUAL
Total Equity and Liabilities
62020
REPORT 62020
0X g0aX
BgeataBvierP
tavirP
(4,286,855) (2,757,651) (2,369,081)
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93

90
Statement of Profit or Loss and Other Comprehensive
Statement
Incomeof Profit or Loss and Other Comprehensive Income
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 March GROUP & COMPANY
Figures in Rand thousand Note 2020 2019 Restated
Revenue 18 1,480,928 1,399,127

Depreciation and amortisation 19 (233,491) (72,692)
Lease expenses 19 (31,883) (271,217)
Direct expenses 19 (267,606) (213,538)
Operating expenses 19 (223,043) (234,477)
Employee costs 20 (463,757) (453,069)
Other Income 60 515

Operating Profit 261,208 154,650
Finance income 21 83,603 81,752

Finance costs 22 (161,426) (4,004)
Foreign Exchange Loss* (314,502) -
Profit/(Loss) Before Taxation (131,117) 232,398
Taxation 23 58,749 (31,068)
Net Profit/(Loss) (72,368) 201,330
Remeasurement of defined benefit 18,358 (1,405)

Income tax (5,140) 393
Remeasurement of PPE - 139,364
Income tax - (31,218)
Total Comprehensive Income (59,150) 308,464
* Foreign exchange loss arose as a result of remeasurement of Lease liability in terms of amendments to IAS 21- The effects of changes in
* Foreign
foreign exchange
exchange rateloss
as aarose
resultasofa the
result of remeasurement
introduction of Lease liability in terms of amendments to IAS 21- The effects of changes in
of IFRS 16-Leases.
* Foreign
foreign exchange rateexchange
as a result of loss
thearose as a result
introduction of IFRSof remeasurement of Lease liability in terms of
16-Leases.
amendments to IAS 21- The effects of changes in foreign exchange rate as a result of the
introduction of IFRS 16-Leases.
00220022 TTRRO
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94

91
Statement of Changes
Statement in Equity
of Changes in Equity
For the year ended 31 March
Total Non
Share Share Revaluation Other Retained
Figures in Rand thousand share Distributable Total equity
capital premium reserve NDR income
capital reserves
Group and Company

Restated Balance at 01 April 2018 2 75,890 75,892 422,148 88,614 667,868 1,281,826 2,025,586
Previously stated 2 75,890 75,892 422,148 88,614 667,868 1,176,254 1,920,014
Prior period error -Reassessment of useful lives* - - - - - - 105,572 105,572
Restated profit for the year - - - - - - 201,330 201,330
Other comprehensive income - - - - - - (1,012) (1,012)
Total comprehensive income for the year - - - - - - 200,318 200,318
Revaluation surplus (NDR) 108,147 108,147
az.oc.hcetnes.www
5954 174 11 72+ :lanoitanretnI
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0044 174 110 :enohpeleT
Restated Opening balance at 31 March 2019 2 75,890 75,892 422,148 88,614 776,015 1,482,144 2,334,051
Previously stated 2 75,890 75,892 422,148 88,614 776,015 1,363,661 2,215,567
Prior period error -Reassessment of useful lives* - - - - - - 118,483 118,483
Previously stated
Profit/(Loss) for the year - - - - - - (72,370) (72,370)
Other comprehensive income - - - - - - 13,218 13,218
Total comprehensive income for the year - - - - - (59,152) (59,152)
Impact of change in accounting policy - - - 20,894 20,894
Balance at 31 March 2020 2 75,890 75,892 422,148 88,614 776,015 1,443,886 2,295,792
*- Prior period error represents the reassessment of the useful lives of assets where assets were previously disclosed at R1.
*- Prior period error represents the reassessment of the useful lives of assets where assets were previously disclosed at R1.
95
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CashCash
FlowFlow
Statement
Statement
For the year ended 31 March GROUP & COMPANY
Figures in Rand thousand Note 2020 2019
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from operations 24 441 854 74 974
Interest received 65 296 39 370
Dividends received 18 307 21 175
Interest paid 25 (158 594) (21)
Tax Paid 26 (39 413) (47 714)
Net cash (used in)/from operating activities 327 450 87 784
CASH FLOW FROM INVESTING ACTIVITIES

Investment in capital assets (72 922) (78 537)
Net cash (used in)/ from investing activities (72 922) (78 537)
CASH FLOW FROM FINANCING ACTIVITIES

GRANT received 16 218 203 177 305
Lease payments (84 879) -
Interest on government grant 16 134 9 705
Net cash from financing activities 149 458 187 010
Total cash movement for the year 403 986 196 258
Cash at the beginning of the year 1 112 407 916 149
Cash at the end of the year 1 516 393 1 112 407

Radiokop, 2040
Radiokop, 2040
020
0220T2RO
Private Bag X06
Private Bag X06 TRPOEPRELRALUANUNNAND
AEDTAER
TAGREGTN
ETIN I
Honeydew, 2040
Honeydew, 2040
port@sentech.co.za
ch.co.za

93
Notes to the Financial Statements
For the year ended 31 March 2020
1. GENERAL INFORMATION
SENTECH SOC limited (the holding Company) is a company incorporated and domiciled in South Africa. The
Company’s registered office is Sender Technology Park, Octave Road, Honeydew. The consolidated annual financial
statements of the Company as at and for the year ended 31 March 2020 comprise of the Company and its subsidiaries
(together referred to as the “Group” and individually as the “Group entities”). The group primarily is involved in signal
distribution and has transmission stations across the country and provides broadcasting services.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these separate and consolidated financial statements
are set out below:
2.1. Basis of preparation and measurement
Statement of Compliance
The company and group financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB),
the Companies Act, No. 71 of 2008, as amended, and the Public Finance Management Act, (No. 1 of 1999, as amended
by Act 29 of 1999).
The group continues to apply IFRS as its reporting framework based on its assessment against the criteria set out in
Directive 12 The Selection of an Appropriate Reporting Framework by Public Entities (effective 1 April 2018) issued
by the Accounting Standards Board (ASB). The directive prescribes the criteria to be applied by a public entity in
selecting and applying an appropriate reporting framework. The conclusion of the assessment is based on the fact
that SENTECH’s operations are commercial in nature and only an insignificant portion of its funding is acquired
through government grants or other forms of financial assistance from government. The conclusion will be re-
assessed in 2021 to ensure that IFRS can still be appropriately applied.
Approval of financial statements

The group and company financial statements have been prepared on a going concern basis and were approved by
the board of directors and authorised for issue on 17 August 2020. The financial statements presented represent
both the company and group financial statements as all subsidiaries are dormant.
Basis of Measurement0044 174 110 :enohpeleT ecfifO daeH

004been
The financial statements have 4 17prepared
4 110 :e nohthe
under pehistorical
leT cost ecfifO da eH
238 637 0680 :retneC llaC )PTS( kraP ygolonhceT rematerial
basis, except for the following dneS items
238Position:
in the Statement of Financial 637 0680 :retneC llaC )PTS( kraP ygolonhceT redneS
040plus
• The defined benefit asset/liability is recognised as the net total of the plan assets, 2 ,punrecognised
okoidaR past
service costs and unrecognised actuarial losses, less unrecognised actuarial gains and04 02present
the ,pokvalue
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a z . o c . h c e t n e s @ t r o p p u s : l i a m - E
az.benefit
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• Land and buildingsaare z.omeasured
c.hcetnatethe ssedate
s.wwwvalue, being the market value at the rddofArevaluation.
latsoP
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INTEGRATED ANNUAL
INTEGRATED REPORT
ANNUAL 2020
REPORT 2020
revaluation is performed on land and building every three years. 60X gaB etavirP
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0 4 0 2 ,wedyenoH
Functional Currency 0402 ,wedyenoH
These financial statements are presented in South African Rands, the Group’s functional currency. All financial
information presented in Rands has been rounded to the nearest thousand.
Changes in accounting policies and comparability

The group has consistently applied the accounting policies to all periods presented in these consolidated financial
statements except for new or revised statements and interpretations implemented during the year. The nature and
effect of new standards and interpretations are discussed in note 3.

Use of Estimates and Judgement

The preparation of financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
Estimates, judgements and assumptions are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Although these estimates are based on management’s best knowledge of current events and actions, actual results
may ultimately differ from these estimates. Revisions to accounting estimates are recognised in the period in which
the estimates are revised and in any future periods affected.
The Group makes estimates, judgements and assumptions concerning the future. Those that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below.
Property, plant and equipment

The valuation methods used for the revaluations of land and building are the income capitalisation amount and
the depreciated replacement cost method, which are deemed most appropriate. The income capitalisation method
considers any market-based evidence regarding the value of the land or buildings as at the date of the valuation.
Should market based evidence not exist the depreciated replacement cost method will be used. The depreciated
replacement cost method uses the replacement cost of the asset at the date of valuation and a depreciation factor is
applied to arrive at the depreciated revalued cost. The comparable sales method of valuation is used, where relevant,
to determine the market value of the property. This method entails the identification, analysis and application of
recent comparable sales involving physical and legally similar properties in the general proximity of the subject
property, to enable a valuator to arrive at a norm which will serve as a guide in estimating the market value of the
property.
All valuations are performed by an experienced, qualified and objective valuator.
The residual values of property, plant and equipment are considered to be insignificant if the estimation of useful
lives is equal to their economic lives.
Impairment of assets
The Group
Head tests whether assets have suffered any impairment,
Office Telephone:in accordance
011 471 with the accounting policy stated
4400
in note 2.5. The recoverable amounts of cash-generating units have been determined based on value-in-use
Sender Technology
calculations. Parkon(STP)
Estimates are based Call Center:
management’s interpretation 0860
of market 736 832
forecasts and objective valuator.
The residual
Radiokop, 2040values of property, plant and equipment are insignificant as the estimation of useful lives is equal to
their economic lives.
Postal
The GroupAddress
recognises the net future tax benefit relatedwww.sentech.co.za
to deferred income tax assets to the extent that it is probable
Private 0202 TROPER LAUNNA DETARGETN I
that the deductible
Bag X06 temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred
income tax assets requires the group to make estimates related to expectations of future taxable income. Estimates
Honeydew,
of future taxable2040
income are based on forecast cash flows from operations and the application of existing tax laws
in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the
ability of the group to realise the net deferred tax assets recorded at the reporting date could be impacted.
Defined benefit funds

Experienced and qualified actuaries determine the value of defined benefit funds’ assets and liabilities.
Information about significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amounts recognized in the consolidated financial statements is
95
included in the following notes:
• Notes 2.5 and 6 – valuation of property, plant and equipment;

• Notes 2.10 and 12 – measurement of employee benefits;
• Notes 2.15 and 13 – utilisation of tax losses;
• Notes 2.11 and 31 – provisions and contingencies; and
• Notes 2.1 and 9 – Expected credit losses on financial assets
• Notes 34 – Going concern and Covid-19
• Notes 2.7 and 6C - Leases
2.2. Basis of Consolidation
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
Loss of Control
On the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling
interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of
control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest
is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity accounted
investee or as an available-for-sale financial asset depending on the level of influence retained.
2.3. Translation of Foreign Currencies
Foreign currency transactions

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount,
the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
At the end of the reporting period:

• Foreign currency monetary items are translated using the closing rate;
• Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rate at the date of the transaction; and
• Exchange differences arising on the settlement of monetary items or on translating monetary items at rates
004at4which
different from those 174they
110were
:entranslated
ohpeleT on initial recognition during the periodeor cfiinfO daeH
• Previous annual 2 financial statements are
38 637 0680 :retneC llaCrecognised in profit or loss
)PTS( kraP ygolonhceTarise.
in the period in which they redneS
• Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign
5954 1the
currency amount 74exchange
11 72+rate:labetween
noitanthe retRand
nI and the foreign currency at the date teeofrtthe
S ecash
vatflow.
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2.4. Financial Instruments
Financial assets
60X gaB etavirP
Classification and measurement 0402 ,wedyenoH
The appropriate classification of a financial asset is determined on acquisition of the financial asset and is based on:
• Whether or not the contractual terms of the financial asset give rise to contractual cash flows that are solely
payments of principal and interest; and
• The objective of the business model in which the financial asset is held at a portfolio level that best reflects
the way the business is managed.
Financial assets are not reclassified subsequent to their initial recognition unless the group changes its business
model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the
first reporting period following the change in the business model.
96
Financial assets are classified into the following category:
Amortised cost:
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as
at fair value through profit or loss:
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding; and
• it is held within a business model whose objective is to hold assets to collect contractual cash flows.
Initial recognition
Financial assets are initially recognised at fair value on the date of commitment to purchase (trade date). The
transaction price is generally the best indicator of fair value. If a contract with a customer has a significant financing
component, the related financial asset is initially measured at the transaction price excluding the time value of
money.
Any directly attributable transaction costs are included in the initial recognition of financial assets except for financial
assets at fair value through profit or loss where directly attributable transaction costs are recognised in profit or loss
on initial recognition.
Subsequent recognition
Amortised cost
Financial assets at amortised cost are measured at amortised cost subsequent to initial recognition using the
effective interest rate method, less any accumulated impairment losses. Interest income, foreign exchange gains
and losses and impairment are recognised in profit or loss.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the
assets.
Expected credit losses

The group subsequently measures its financial assets at amortised cost. Amortised cost is the amount at which the
financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus
the cumulative amortisation using the effective interest method of any difference between that initial amount and
the maturity amount and, for financial assets, adjusted for any loss allowance.
The group applies the simplified approach in measuring the expected credit losses. The simplified approach
Sender Technology
requires that an allowance atPark (STP)
an amount Call
equal to lifetime Center:
expected credit0860
losses 736 832 on trade receivables
be recognised
Octave
or contractStreet
assets that result from transactions that areInternational:
within the scope of+27 11that
IFRS 15 471
do 4595
not contain a significant
financing component.
Radiokop, 2040 The group’s payment terms requires the customers to make payment for services rendered
within a period that ranges from 7 days to 30 days from the date of invoice.
Postal
CustomersAddress
are classified into categories based on ageingwww.sentech.co.za
and the customer’s profile. Each category is rated on the
following criteria:
Bag X06
• Default history – whether the customer has defaulted in the past and any remedies applied when the default
Honeydew,
occurred;2040
• Renegotiated terms - Whether the customers have renegotiated terms in the past and whether they have
adhered to the terms of the renegotiated terms;
• Strength of shareholder – Whether the shareholder or concerned stakeholder is willing and able to assist a
customer in times of distress;
• The future viability of the business – Whether the customer is facing any disruptions in its business model
due to many factors such as technological advancements, introduction of new suppliers, changes in
customer’s preferences, changing business environment, responses to changes
97
Consideration of the above factors results in the rebutting of the presumption that there is a significant increase
in credit risk when payments are more than 30 days past due and that default does not occur later than when a
financial asset is 90 days past due. The group concludes that a financial asset is in default when the counterparty is
unlikely to pay its obligations.
The expected credit losses are then calculated as the weighted average score multiplied by the probability default
for the range that the weighted average score falls into.
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future
cash flows of the financial asset have occurred. A financial asset is credit-impaired if there is observable evidence of
the following:
• Significant financial difficulty of the customer
• Failure to honour the renegotiated terms
• The clients unwillingness and inability to restructure terms with management
• Prolonged periods of default
• Inability of shareholder to provide financial relief
• Concerns on the future viability of the business
The expected credit losses balance that relates to Financial Assets that become credit impaired are then reclassified
from expected credit losses to actual impairment as when the debt is written off.
Classification, recognition, measurement and derecognition

Financial liabilities are classified at amortised cost
Non-derivative financial liabilities are initially recognised at fair value. Any directly attributable transaction costs
are included in the initial recognition of non-derivative financial liabilities except for financial liabilities at fair value
through profit or loss. Directly attributable transaction costs related to liabilities recognised at fair value through
profit or loss are recognised in profit or loss on initial recognition when incurred.
Financial liabilities are measured subsequent to initial recognition at amortised cost or fair value as per the relevant
liability category.
Financial liabilities are recognised on the date of commitment and are derecognised when the obligation expires, is
discharged or cancelled, or there is a substantial modification to the terms of the liability.
Subsequent measurement
Amortised cost 238 637 0680 :retneC llaC )PTS( kraP ygolonhceT redneS
Financial liabilities at amortised cost are measured at amortised cost using the effective interest
04method.
02 ,pokoidaR
Share capital az.oc.hcetnes@troppus :liam-E
az.ocIncremental
Ordinary shares are classified as equity. wwwdirectly attributable to the issue ofssordinary
.hcetnes.costs erddAshares
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recognised as a deduction from equity, net of any tax effects. 60X gaB etavirP
2.5. Property, Plant and Equipment 0402 ,wedyenoH
Recognition and measurement

Land and buildings comprise mainly transmitter stations and offices. Buildings are revalued to fair value on a three-
year cycle by external independent valuators. Land and buildings are carried at revalued amounts less subsequent
accumulated depreciation (see below) and impairment losses. Any accumulated depreciation at the date of
revaluation is eliminated against the gross carrying amount and the net amount is restated to the revalued amount.
Increases in the carrying value arising on the revaluation of land and buildings (revaluation surpluses) are credited
in other comprehensive income and presented in the revaluation reserve in equity net of taxation. Any loss is
98
recognised in other comprehensive income and presented in the revaluation reserve in equity to the extent that an
amount had previously been included in the revaluation reserve relating to the specific land and buildings, with any
remaining loss recognised immediately in profit or loss.
Other items of property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to
a working condition for its intended use, directly attributable to borrowing costs and the costs of dismantling and
removing the items and restoring the site on which they are located. For assets funded through government grants,
the grant income is netted against these costs.
When significant parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of property, plant and equipment are determined by comparing the proceeds from
disposal to the carrying amount of property, plant and equipment and are recognised net within “other income”
in profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to
retained earnings.
Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the
item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost
can be measured reliably. The carrying amount of the replaced part is derecognised and the replacement part is
capitalised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss
as incurred.
Depreciation
Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted
for cost, less residual value.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of
an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption
of the future
Head economic benefits embodied in the asset.
Office Leased assets 011
Telephone: are depreciated
471 4400over the lease. Land is not
depreciated.
Octave Street
The useful lives International:
of items of property, plant and equipment +27as11
have been assessed 471 4595
follows:
Radiokop, 2040
Item Average useful life
Land and buildings E-mail: support@sentech.co.za
Postal Address
• Land www.sentech.co.za
Indefinite
• Buildings
Bag X06
• Improvements to leasehold premises
70 to 100 years
20 to 50 years
Honeydew, 2040
Motor vehicles
• Motor vehicles 5 to 10 years
Technical equipment:
• Technical equipment 10 to 35 years
• Computer, technical and office equipment 2 to 10 years
• Monitoring equipment 5 to 15 years
99
The depreciation method, residual values and useful lives of assets are reviewed, and adjusted if appropriate, at each
reporting date. The estimation of the useful lives of property, plant and equipment is based on historic performance
as well as expectations about future use and therefore requires a degree of judgement.
Gains or losses on disposal of an item of property, plant and equipment is recognised in profit or loss within other
income or other expenses.
2.6. Intangible Assets
Recognition and measurement

Acquired computer software licences are initially capitalised at cost, which includes the purchase price (net of
any discounts and rebates) and other directly attributable cost of preparing the asset for its intended use. Direct
expenditure including employee costs, which enhances or extends the performance of computer software beyond
its specifications and which can be reliably measured, is added to the original cost of the software. Costs associated
with maintaining the computer software are recognised as an expense when incurred. Purchased software that is
integral to the functionality of the related equipment is capitalised as part of that equipment.
Computer software licences acquired have a finite useful life and are subsequently carried at cost less accumulated
amortisation and accumulated impairment losses.
The amortisation period and amortisation method of intangible assets other than goodwill are reviewed at least at
each balance sheet date. The effects of any revision are recognised in profit or loss when the changes arise.
Costs directly attributable to the development of computer software are capitalised as intangible assets only when
technical feasibility of the project is demonstrated, SENTECH has an intention and ability to complete and use the
software and the costs can be measured reliably. Such costs include purchases of materials and services and payroll-
related costs of employees directly involved in the project. Research costs are recognised as an expense when
incurred.
When significant parts of an item of intangible assets have different useful lives, they are accounted for as separate
items (major components) of intangible assets.
Subsequent costs
The cost of replacing part of an item of the intangible asset is recognised in the carrying amount of the item if it
00economic
is probable that the future 44 174benefits
110 :eembodied
nohpele T the part will flow to the Group and
within ecits
fifcost
O dcan
aebe
H
measured reliably. The carrying amount of the replaced part is derecognised and the replacement part is capitalised.
The costs of the day-to-day servicing of the intangible assets are recognised in profit or loss as incurred.
Amortisation 0402 ,pokoidaR
Amortisation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted
az.ovalue.
for cost, less residual c.hcetnes@troppus :liam-E
INTEGRATED ANNUAL REPORT 2020 60lives
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful X gofaeach
B etpart
avirofP
an item of the intangible asset, since this most closely reflects the expected pattern of consumption of the future
economic benefits embodied in the asset. 0402 ,wedyenoH
The useful lives of items of intangible assets have been assessed as follows:
Item Average useful life

Computer Software and Licences
Computer Software and Licences 5 to 15 years
100
2.7. Leases
A lease is recognised as a liability if it transfers all the risks to the lessee as per IFRS 16 Leases. A lease is classified as
an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.
The Group as Lessor

Amounts due from lessees under finance leases are recognised as receivables at the amount of the Group’s net
investment in the leases. Finance lease income is allocated to accounting periods to reflect a constant periodic rate
of return on the Group’s net investment outstanding in respect of the leases.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased
asset and recognised on a straight-line basis over the lease term.
The Group as Lessee

For existing and any new contracts entered into on or after 1 January 2019, the Group considers whether a contract
is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the
underlying asset) for a period in exchange for consideration’.
To apply this definition the Group assesses whether the contract meets three key evaluations which are whether:
• The contract contains an identified asset, which is either explicitly identified in the contract or
• Implicitly specified by being identified at the time the asset is made available to the Group
• The Group has the right to obtain substantially all of the economic benefits from use of the identified asset
throughout the period of use, considering its rights within the defined scope of the contract.
The Group has the right to direct the use of the identified asset throughout the period of use. The Group assess
whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.
Measurement and recognition of leases as a lessee

At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance sheet.
The right-of-use asset is measured at present value of lease payments, which is made up of the initial measurement
of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove
the asset at the end of the lease, and any lease payments made in advance of the lease commencement date (net of
Head Office
any incentives received). Telephone: 011 471 4400
Sender Technology Park (STP) Call Center:
The Group depreciates the right-of-use assets on a straight-line basis from0860
the lease736 832
commencement date or standard
Octave
adoption toStreet International:
the earlier of the end of the useful life of the right-of-use asset+27or the11
end471 4595
of the lease term. The Group
Radiokop,
also assesses the 2040
right-of-use asset for impairment when such indicators exist.
When the lease liability is remeasured, the corresponding E-mail: support@sentech.co.za

adjustment is reflected in the right-of-use asset, or profit
Postal
and loss ifAddress www.sentech.co.za
the right-of-use asset is already reduced to zero.
Private Bag X06
On the statement of financial position, right-of-use assets have been included in property, plant and equipment and
Honeydew, 2040
lease liabilities have been separated into non-current liability for the portion older than 1 year and trade and other
payables for the portion of lease liability less than a year.
Facility Rental
Facility rental income is not recognised on a straight-line basis, as the substance of the agreement with customers
does not state the agreed fixed periods as defined or required for classification as an operating lease. The contracts
with the customers have no escalation clauses for the rentals, only the annual tariff increase is applied at the agreed
CPI rate.
101
Operating leases
Operating lease payments which do not meet the criteria for recognition as a finance lease per IFRS 16 are recognised
as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an
expense and the contractual payments are recognised as an operating lease asset or liability. This balance is not
discounted.
2.8. Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the
weighted average cost principle, and includes expenditure incurred in acquiring the inventories and bringing them
to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and selling expenses.
Where necessary, a provision is made for obsolete, slow-moving and defective inventories.
2.9. Impairment of Assets
Impairment of non-financial assets

The Group assesses at each reporting date whether there is any indication that an asset may be impaired. If any such
indication exists, the Group estimates the recoverable amount of the asset.
If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset.
If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-
generating unit to which the asset belongs is determined.
The recoverable amount of an asset or a cash generating unit is the higher of its fair value less costs to sell and its
value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset.
If the recoverable amount of an asset is less than the carrying amount, the carrying amount of the asset is reduced
to its recoverable amount. That reduction is an impairment loss. An impairment loss of assets carried at cost less any
accumulated depreciation or amortisation is recognised immediately in profit or loss.
The Group assesses at each reporting date whether there is any indication that an impairment loss recognised in
prior periods for assets may no longer exist or may have decreased. If any such indication exists, the recoverable
amounts of those5assets
954 are
17estimated.
4 11 72+ :lanoitanretnI teertS evatcO
0402 ,pokoidaR
The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the
carrying amountathat
z.owould
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tnebeen
s@trdetermined
oppus :lihad amno -Eimpairment loss been recognised for the asset in prior
periods. az.oc.hcetnes.www sserddA latsoP
INTEGRATED ANNUAL REPORT62020
2.10. Employee Benefits 0X gaB etavirP
0402 ,wedyenoH
Short-term employee benefits
Short-term employee benefits are recognised in profit or loss during the period in which services are rendered.
Employee entitlements to annual leave and long service leave are recognised in profit or loss when they accrue
to employees in respect of past services rendered up to the reporting date. This obligation is measured on an
undiscounted basis.
An accrual is recognised for the amount expected to be paid under short-term cash bonus plans if the Company has
a present legal or constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.
102
Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions
to defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods
during which the services are rendered by employees. Prepaid contributions are recognised as an asset to the extent
that a cash refund or a reduction in future payments is available.
Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s
net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in return for their service in the current and prior periods;
that benefit is discounted to determine its present value. Any unrecognised past service costs and the fair value of
any plan assets are deducted. The discount rate is the yield at the reporting date on AA credit rated bonds that have
maturity dates approximating the terms of the Group’s obligations and that are denominated in the same currency
in which the benefits are expected to be paid.
The calculation is performed annually by a qualified actuary using the projected unit credit method. When the
calculation results in a benefit to the Group, the recognised asset is limited to the present value of economic benefits
available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order
to calculate the present value of economic benefits, consideration is given any minimum funding requirements that
apply to any plan in the Group. An economic benefit is available to the Group if it is realisable during the life of the
plan, or on settlement of the plan liabilities. The Group recognises past service cost in profit or loss at the earlier of
the date when the plan amendment or curtailment occurs and when the entity recognises related restructuring
costs or termination benefits.
The Group recognises all actuarial gains and losses arising from defined benefit plans in other comprehensive
income.
2.11. Provisions and Contingencies Provisions
Provisions are recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
Head Office
reflects current Telephone:
market assessments of the time value of money and the011 471 4400
risks specific to the liability. The unwinding
of discount is recognised as finance cost. The valuation of long-term provisions requires a degree of judgement
Sender Technology Park (STP)
regarding the future cash flows and the timing thereof.
Call Center: 0860 736 832
Radiokop, 2040
Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a
contract are lower than the unavoidable cost of meetingE-mail: support@sentech.co.za
its obligations under the contract. The provision is measured
at the present value of the lower of the expected cost of terminating the contract and the expected net cost of
continuingBag X06contract. Before a provision is established, the Group recognises any impairment loss on the
with the
assets associated with that contract.
Honeydew, 2040
Contingent liabilities
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Group, or a present obligation that arises from past events but is not recognised because it is not probable
that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount
of the obligation cannot be measured with sufficient reliability. Contingent liabilities are only disclosed and not
recognised as liabilities in the statement of financial position.
103
If the likelihood of an outflow of resources is remote, the possible obligation is neither a provision nor a contingent
liability and no disclosure is made.
2.12. Revenue
The entity recognises revenue when it has met the 5 step recognition criteria set out in the standard.
The 5-step approach is:
• Identify the contract(s) with the customer(s) – SENTECH has valid contracts with customers
• Identify the performance obligations in the contract - SENTECH satisfies its performance obligations when
it renders the service of signal transmission
• Determine the transaction price – The transaction price of services rendered is determined taking into
account the tariff as agreed in the contract and variability of the consideration and any existence of a
financing component in the contract. Variability of consideration received is mainly affected by the USD/ZAR
exchange rate. Considerations between SENTECH and its customers do not include a significant financial
component.
• Allocate the transaction price to the performance obligations in the contract – SENTECH uses standalone
pricing in that similar prices can be charged to multiple customers who are similar and operate in similar
circumstances.
• Recognise the revenue when the entity satisfies a performance obligation – Revenue is recognised when
transmission services are rendered.
The entity provides signal distribution services on fixed price contract with an annual escalation. Revenue from
providing services is recognised in the accounting period in which the services are rendered.
Sale of goods
The Group sells a range of broadcasting and telecommunication products. Sales of goods are recognised when the
Group has delivered products to the customer, the customer has full discretion over the channel and price to sell
the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.
Delivery does not occur until the products have been shipped to the specified location, the risks of obsolescence
and loss have been transferred to the customer, and either the customer has accepted the productsecfi
infaccordance
O daeH
00acceptance
with the sales contract, the 44 174 1provisions
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Sales 402 ,pinokthe
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contracts, net of the estimated volume discounts and returns at the time of sale. Experience is used to estimate and
provide for the discounts and returns.
az.oc.hcetnes@troppus :liam-E sserddA latsoP
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The Group renders broadcasting and transmission services. These services are provided on a0time
price contract for a specific period.
402basis
,weordas
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oH
Revenue from time contracts is recognised at the contractual rates as labour hours are delivered and direct expenses
incurred. If circumstances arise that may change the original estimates of revenues, costs or extent of progress
toward completion, estimates are revised. These revisions may result in increases or decreases in estimated revenues
or costs and are reflected in profit or loss in the period in which the circumstances that give rise to the revision
become known by management.
104
2.13. Government Grants
Grants that compensate the Group for the cost of an asset are recognised initially as deferred income which is
classified under current liabilities. Grants relating to completed and incomplete asset projects are deducted from
the cost of the relevant asset (net presentation method). The depreciation expense recognised in profit or loss over
the useful life of the asset is calculated from the net cost of the asset which is after deduction of the corresponding
deferred government grant. Grants that compensate the Group for expenses incurred are recognised in profit or
loss on a systematic basis in the same periods in which the expenses are recognised. Government grants are only
recognised when there is reasonable assurance that they will be received, and the Group will comply with the
conditions associated with the grant. Deferred income is classified as a current liability as uncertainty exists as to the
timing of the release of the government grants.
2.14. Finance Income and Finance Costs
Finance income comprises dividend income, interest income on the Group’s own cash and interest income on
government grants invested, except where specified in the government grant terms and conditions relating to the
funds invested that are recognised as deferred income. Interest income is recognised as it accrues in profit or loss,
using the effective interest method. Dividend income is recognised in profit or loss on the date that the Group’s right
to receive payment is established.
Finance costs comprise interest expense on borrowings, interest costs on defined benefit plans, unwinding of the
discount on provisions and impairment losses recognised on financial assets that are recognised in profit or loss.
Borrowing costs that are not directly attributed to the acquisition, construction or production of a qualifying asset
are recognised in profit or loss using the effective interest method.
Foreign currency gains and losses are reported on a net basis in operating costs.
2.15. Income tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or
loss except to the extent that it relates to a business combination, or items recognised directly in equity or other
comprehensive income.
Head Office
Current tax is the expected tax payable or receivableTelephone: 011 471
on the taxable income 4400
or loss for the year, using tax rates
enacted or substantively
Sender Technology Park (STP) enacted at the reporting date,
Call Center: 0860 736 832 in respect of previous
and any adjustment to tax payable
years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
Radiokop, 2040
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the
following temporary differences: the initial recognitionE-mail: of assets support@sentech.co.za
or liabilities in a transaction that is not a business
Postal Address
combination and that affects neither accounting nor taxable profit or loss; and goodwill on initial recognition.
www.sentech.co.za
Bag
Deferred tax X06 at the tax rates that are expected to be applied to temporary differences when they
is measured
reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax
Honeydew, 2040
assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but
they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised
simultaneously.
2.16. Related Parties
Related parties include the shareholder, formerly The Department of Communications, now The Department of
Telecommunications and Postal Services (100% shareholder) and its fellow subsidiaries. Directors, their close family
members and any employee who is able to exert a significant influence on the operating policies of the Group are also
105
considered to be related parties. Key management personnel are also regarded as related parties. Key management
personnel are those persons having authority and responsibility for planning, directing and controlling the activities
of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
3. STANDARDS AND INTERPRETATIONS ADOPTED IN THE CURRENT YEAR
The adoption of IFRS 16 represents a change in accounting policy for the organisation. The standard allows for a
modified retrospective approach where restatement of previous years is not done. Sentech SOC LTD has elected to
apply the modified retrospective approach in preparing the annual financial statements.
Topic Summary of requirements Impact

IFRS 16 Leases IFRS 16 Leases replaces IAS 17 Leases along The initial application of IFRS 16 has had a ma-
with three Interpretations (IFRIC 4 Determining terial impact on the financials of SENTECH.
whether an Arrangement contains a Lease,
SIC 15 ‘Operating Leases-Incentives’ and SIC
27 Evaluating the Substance of Transactions
Involving the Legal Form of a Lease’).
IFRS 16 requires that the group assesses SENTECH assessed its contracts and identified
whether its contracts are or contains a lease contracts that contain a lease.
IFRS 16 requires that at lease commencement SENTECH recognised right of use assets for
date, the Group recognises a right-of-use contracts that contain a lease with a corre-
asset and a lease liability sponding lease liability. The recognition has
on the Statement of Financial Position been done in the Statement of Financial Posi-
tion.
The statement requires that the entity SENTECH has elected to depreciates the right
depreciates the right-of-use assets of use assets over the period of the lease term
on a straight-line basis from the lease on a straight-line basis.
commencement date to the earlier of the end
Head Office of the useful life of the right-of-use asset or
Telephone: 011 471 4400
the end of the lease term.
Head Office
Sender Technology 0 0
Park 4 4 1 7 4 1 1 0 : e n o h p e l
Telephone:eT 011 471 4400 ecfifO daeH
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The statement requires that the Group SENTECH measures the lease liability at the
Radiokop, 2040measures the lease liability at the present
value
0402 ,pokoidaR
present value of the lease payments unpaid
azthe
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at that date, discounted using the Group’s in-
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Honeydew, 2040

rate implicitdiscounted
that date, in the lease if the
using that interest
rate is payments
the presentunpaid
value atof that date,
the lease
readily available or the Group’s
rate implicit in the lease if that rate is discounted using the
payments unpaid at that date, Group’s
incremental
readily borrowingorrate.the Group’s
available incremental borrowing
discounted using rate
the of 11.95%.
Group’s
incremental borrowing rate. incremental borrowing rate of 11.95%.
Notes
For Notes
the year to
to the the Financial
Financial
ended 31 Statements
MarchStatements
2020
Foryear
For the the year
ended ended 31 March
31 March 20202020
3.1 Impact of IFRS 16 Statement of Financial Position for the 2019/2020 year:
2.17.1 Impact of IFRS 16 Statement of Financial Position for the 2019/2020 year:
3.1 Impact
3.1 Impactof IFRSofIFRS
16 Statementhad of Financial Position for thefor2019/2020of theyear:
The
2.17.1 Impactof
application IFRS
of IFRS 16
16 Statement
16Statement
has of Financial
a material impact
of Financial Position
on the
Position financial
for the 2019/2020
position
the 2019/2020 year: entity.year:
The application
This of IFRS
is illustratedofbelow:
The application
16 has had a material impact on the financial position
IFRS 16 has had a material impact on the financial position of the entity.
of the entity.
This is
Theillustrated
The application
application
This is
below:
of IFRS
illustrated 1616
of IFRS
below: has had
has hada amaterial
materialimpact
impact on thethefinancial
financialposition
position of of
thethe entity.
entity.
This This
is illustrated below:
is illustrated below: IAS 17 IFRS 16 Impact on
Carrying
IAS 17 Reclassification Remeasurement Carrying
IFRS 16 Retained
Impact on
Property Plant and amount amount earnings-
Carrying
- Reclassification
1 348 517 Remeasurement - 1Carrying
348 517 Retained
Equipment
Property Plant and amount- amount earnings-
Lease Liability
Equipment - 348517)
(11348 517 -- 348517)
(11348 517 -
Property
Impact ofPlant and
change 114
Lease Liability -- (11348
348517)
517 -- (11348
348517)
517 --
Equipment
in accounting
Impact of change (20 894) 20 894 - 114 (20 894)
Lease
policy Liability - (1 348 517) - (1 348 517) -
in accounting
Impact of change (20 894) 20 894 - (20 894)
Total
policyImpact (20 894) 20 894 - (20 894)
in accounting (20 894) 20 894 - (20 894)
Total
policyImpact (20 894) 20 894 - (20 894)
Total Impact (20 894) 20 894 - (20 894)
2.17.2 Impact of IFRS 16 on profit or loss for the 2019/2020 year:

3.2 Impact
3.2 Impact of IFRS
of 16
IFRSon16profit or lossorfor
on profit thefor
loss 2019/2020 year: year:
the 2019/2020
2.17.2 Impact of IFRS 16 on profit or loss for the 2019/2020 year:
3.2 Impact of IFRSof16IFRS
The application on16profit or aloss
has had for the
material 2019/2020
impact year: performance of the entity.
on the financial
2.17.2
The application
The Impact of
application of IFRS
IFRS
of 16
IFRSon
16 16profit
has had
has or aloss
had a for the 2019/2020
material
material impact
impact on year:
thefinancial
the financialperformance
performance of the
of the entity.
entity.
This application
The is illustratedofbelow:
IFRS 16 has had a material impact on the financial performance of the entity.
This is illustrated
This is
The application below:
illustrated below:
of IFRS 16 has had a material impact on the financial performance of the entity.
This application
The is illustratedofbelow:
IFRS 16 has had a material impact on the financial performance of the entity.
This is illustrated below: IAS 17 IFRS 16 Impact on
This is illustrated below:
IASCarrying
17 17
IAS Reclassification Remeasurement Carrying
IFRS 1616
IFRS Retained
Impact on
amount
Carrying
Carrying Reclassification
Reclassification Remeasurement
Remeasurement amount
Carrying
Carrying earnings
Retained
IAS 17 IFRS 16 Impact on
amount
amount
Carrying Reclassification Remeasurement amount
amount
Carrying earnings
Retained
Lease expense amount
250 975 (250 975) - amount - earnings -
Depreciation
Lease expense 250 975- 142975)
(250 413 - 142 413- -
Lease expense
Depreciation
Finance cost 250 975- 143975)
(250
142
158 351
413
593 - 143 593
142
158 351-
413 -
Depreciation
Finance
Total cost
Impact 250 975- 143031)
158
(50 351
593 - 143
158 351
301 593
006 -
Finance
Total cost
Impact 250 975- 158969)
(50 593
031) - 158 593
301 944
006 -
4. Standards and interpretations
Total Impact 250 975not yet effective as at 01 January 2019-
(50 969) 301 944 -
4. Standards and interpretations not yet effective as at 01 January 2019
4. Standards
The following
2.18 and 0INTERPRETATIONS
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Estimates, judgements and assumptions are continually
the first annual evaluated
reporting period and are
beginning based
on or after on historical
1 January experience
2020.
and other judgements
Estimates, factors, including expectationsare
and assumptions ofcontinually
future events that areand
evaluated believed to be
are based onreasonable under the
historical experience
circumstances. Although these estimates are based on management’s best knowledge of
and other factors, including expectations of future events that are believed to be reasonable under current events
the
Estimates, judgements and assumptions are continually evaluated and are based on historical experience and
and actions, actual
circumstances. resultsthese
Although may ultimately
estimates differ
are fromon
based these estimates. best knowledge of current events
management’s
other factors, including expectations of future events that are believed to be reasonable under the circumstances.
and actions,
Althoughactual results may
these estimates areultimately differ from these
based on management’s best estimates.
knowledge of current events and actions, actual results
may ultimately differ from these estimates. 108
The Group makes estimates, judgements and assumptions concerning the future. Those that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below.
Property, plant and equipment

The valuation methods used for the revaluations of land and building are the income capitalisation amount
and the depreciated replacement cost method, which are deemed most appropriate. The income capitalisation
method takes into account any market-based evidence regarding the value of the land or buildings as at the date
of the valuation. Should market based evidence not exist the depreciated replacement cost method will be used.
The depreciated replacement cost method uses the replacement cost of the asset at the date of valuation and a
depreciation factor is applied to arrive at the depreciated revalued cost. The comparable sales method of valuation is
used, where relevant, to determine the market value of the property. This method entails the identification, analysis
and application of recent comparable sales involving physical and legally similar properties in the general proximity
of the subject property, to enable to valuator to arrive at a norm which will serve as a guide in estimating the market
value of the property.
All valuations are performed by an experienced, qualified and objective valuator.
The residual values of property, plant and equipment are considered to be insignificant is the estimation of useful
Impairment of assets
The Group tests whether assets have suffered any impairment, in accordance with the accounting policy stated
calculations. Estimates are based on management’s interpretation of market forecasts and objective valuator.
The residual values of property, plant and equipment are considered to be insignificant as the estimation of useful
The Group tests whether assets have suffered any impairment, in accordance with the accounting policy stated
calculations. Estimates are based on management’s interpretation of market forecasts and assessment.
The Group recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable
238 63differences
that the deductible temporary 7 0680 :will
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108
SENTECH
SENTECHINTEGRATED
INTEGRATEDREPORT
REPORT2019/20
2019/20
Notes to the Financial Statements for the year
Notes to the Financial Statements for the year
Notes
Notes to
ended
to31
ended
the
31the
Financial
March 2020
Financial
March 2020
Statements
Statements
For the
Notes
For the year
year
Figures ended
to the
in ended 31 March
Financial
31 March 2020
Rand thousand Statements
2020
Figures in Rand thousand
6A PLANT
aazz.o
6A PROPERTY,
Figures
FiguresPROPERTY,
in
in Rand
Rand PLANT AND
AND EQUIPMENT
thousand
thousand EQUIPMENT
.occ.h
6A
6A PROPERTY,
PROPERTY, PLANT
PLANT AND EQUIPMENT
EQUIPMENT
6A PROPERTY, PLANT
ANDAND EQUIPMENT
Group 2020
2020 2019
2019
Group and
and Company
Company
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Accumulated Cost Accumulat Carrying
.occ.h
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Accumulat ed Carrying
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Cost or
or revaluation
revaluation depreciation
depreciation Carrying
Carrying value
value revaluation
revaluation Depreciati on
Depreciation Amount
Amount
00004444117744111100:e
Buildings 837
837 104
104 (305
(305 654)
654) 531 450
531 450 798
798 486
486 (254
(254 890)
890) 543
543 595
595
Buildings
Land 154
154 511
511 -- 154
154 511
511 154
154 511
511 -- 154
154 511
511
Land
.hcceettnneess.w
Motor 43
43 521
521 (21
(21 323)
323) 22 198
22 198 43 732
43 732 (19
(19 216)
216) 24 516
24 516
@ttrrooppppuuss:l:ilaiam
Motor vehicles
vehicles
:ennoohhppeele
Computer,
Computer, technical
technical and
and 858
858 794
794 (586
(586 674)
674) 272
272 120
120 913
913 832
832 (635
(635 930)
930) 277
277 902
902
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office equipment
office equipment
Capital 126
126 850
850 -- 126
126 850
850 135
135 795
795 -- 135
135 795
795
Capital Work
Work in
in Progress
Progress
Total 2 020
2 020 780
780 (913
(913 651)
651) 1 107
1 107 129
129 2 046 356
2 046 356 (910
(910 037)
037) 1 136 319
1 136 319
Total
0 0
)P
Reconciliation
Reconciliation of
of property,
property, 0 0
plant and equipment
plant and equipment –– 2020
2020
Reconciliation
Reconciliation of
of property,
property, plant
plant and equipment
equipment –– 2020
2020
Reconciliation of property, plant
andand equipment – 2020
Opening Additions Reassessment Retirement Other
Other Transfers Depreciation Total
Opening balance
balance Additions Reassessment Retirement Transfers Depreciation Total
Buildings 543
543 595
595 -- -- (496)
(496) 42
42 984
984 -- (54
(54 633)
633) 531
531 450
450
Buildings
)PTTSS((kkrraaPPyyggoolo
Land 154
154 511
511 -- -- -- -- -- -- 154
154 511
511
Land
Motor 24
24 516
516 -- -- -- 683
683 -- (3
(3 000)
000) 22
22 198
198
Motor vehicles
vehicles
00440022,w
Computer, 277 370 (3 26 377 (28 674) 272
00440022,p
Computer, technical
technical and
and 277 902
902 370 119
-- (3 856)
856) 26 377 -- (28 674) 272 120
120
office equipment 119
eeccfififfO
office equipment
Capital 135
135 795
795 72
72 470
470 -- (11
(11 372)
372) (70
(70 044)
044) -- -- 126
126 850
850
Capital work
work in
in progress*
progress*
,pookkooid
1
1 136
136 319
319 72
72 840
840 -- (15
(15 723)
723) -- -- (86
(86 307)
307) 1
1 107
107 129
129
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471 4400
60 110
110
736 832(3 322)
322) SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
2019/20
60 736
r: 0860 832
736 832
27 11109
471 4595
27 11 471
al: +27 11 4595
Notes to the
For the yearFinancial Statements
ended 31 March 2020
Notes
For to the
the year Financial
ended 31 MarchStatements
2020
Reconciliation
Figures of property,
in Rand thousand
plant and
Reconciliation equipment
Reconciliation property,
ofofproperty,
2019 plant and equipment – 2019
Reconciliation of –property, plant and equipment – 2019
Reconciliation
plant and of property,
equipment –
Reconciliation of property,
plant and equipment – 2019
2019 plant and equipment – 2019
Reconciliation of property,
plant and equipment – 2019 Opening balance Additions Revaluation Retirement Transfers Depreciation Total
Opening balance Additions Revaluation Retirement Transfers Depreciation Total
Buildings 461 527 - 71 042 (332) - 48 171 (36 813) 543 595
Buildings 461 527
86 189 - - 71 042
68 322 (332)
- -- 48 171
- (36 813)
- 154 595
543511
Land 461 527 - 71 042 (332) - 48 171 (36 813) 543 595
Buildings 189 68 322 - - 154 511
Motor
Land vehicles 22
86673
461 527 -- - - 71 042 (82) - (332) -- 5 734
48 171 (3 809)
(36 813) 24 516 595
Buildings
Land 86 189 - 68 322 - -- - - 154
543511
Computer, technical and
Motor vehicles 266 673
22241 6- - (82)
(369) -- 734
405525 (28 809)
(3500) 277 516
24902
86 189
22 673 - - - 68 322
- (82) - -- 5 734 - (3 809) - 154 511
24 516
Motor
Land vehicles
office equipment
Computer, technical and 266 241 6 - (369) - 40 525 (28 500) 277 902
Computer,
Motor technical and
vehicles 266 673
22241 6- (82) -- 734
405525 (28(3 809) 24 516
office equipment
Capital work in progress 194 281 58 183 - - - (22 239) (369) - (94 430) - 500) 135 795277 902
office equipment
Computer, technical and 281266 241 183 6 - 239) (369) - 40 525
(94 430) (28 500) 135 795277 902
Capital work in progress 1 030
194910 58
58189 139 364 - (23
(22022) -- - (69 122) - 1 136 319
office equipment
Capital work in progress 194 281 58 183 - (22 239) - (94 430) - 135 795
1 030 910 58 189 139 364 (23 022) - - (69 122) 1 136 319
Capital work in progress 194 281
1 030 910 58 183
58 189 139 364 - (23 239)
(22022) -- (94 430)- (69 122) - 1 136 795
135319
If land and buildings were stated at the historical
1 030
If land and buildings were stated at the
costs’ basis,
910historical the58amount
costs’ basis, the 139 364
189 amount would be as follows: (23 022) - - (69 122) 1 136 319
would
If landbe and
as buildings
follows: were stated at the historical costs’ basis, the amount
If land and buildings were stated at the historical costs’ basis, the amount would be as follows:
wouldIf land as follows:
be and If land and buildings
buildings were stated
were stated the historical
at theathistorical costs’
costs’ basis,
basis,the amount would
the amount be as
would befollows:
as follows:
GROUP AND COMPANY
If land and buildings were stated at the historical costs’ basis, the amount would be as follows:
GROUP
GROUP AND AND COMPANY 2020 2019 2018
GROUP ANDCOMPANY
COMPANY
GROUP
Cost
GROUP AND ANDCOMPANY
COMPANY 2020435 970 2019 392 985 365 039
2018
GROUP AND COMPANY 2020 435 970 2019 392 985 2018365 039
Cost (274 127) (230 421) (195 440)
Accumulated
Cost depreciation 435 970
2020 985
3922019 039
3652018
and losses (274 127) (230 421) (195 440)
Accumulated
impairmentdepreciation
Cost 435 970
(274 127) 392 985
(230 421) 365 039
(195 440)
Accumulated
and depreciation
impairment losses 161 842 162 565 169
Carrying value (274 127) (230 421) (195 440)600
and
Accumulated losses
impairmentdepreciation 161 842 162 565 169 600
Carrying value
and impairment
Carrying value losses 161 842 162 565 169 600
Carrying value 161 842 162 565 169 600
: 011 471 4400 SENTECH

110 SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
2019/20
r:471
08604400
736 832 SENTECH INTEGRATED
SENTECH 121
REPORT
INTEGRATED REPORT
2019/202019/20
1
60 471
al: 7364400
+2783211 471 4595 121
121 REPORT 2019/20
860
2711111
121 REPORT 2019/20
+27 11 471 4595
port@sentech.co.za
t@sentech.co.za
ch.co.za
otes to
rt@sentech.co.za
otesNotes
o.za to the
thetoFinancial
the Financial Statements
Statements
or the
otes
or year ended
to the
the For
co.za yearthe year 31 March
ended
Financial
ended 31 31 2020
March 2020
Statements
March 2020
or the 6B 31 March 2020
year ended Assets
INTEGRATED
6B Intangible
6B Intangible Assets
Intangible Assets INTEGRATED ANNUAL
ANNUAL REPORT
REPORT 2020
2020
6B 6B Intangible
Assets Assets
6B Intangible
Intangible
6B Assets
Intangible
6B Intangible
Intangible Assets
Assets
Assets
6B Intangible Assets
Group and Company 2020
2020 2019
2019
and Company
Group and
Group 2020
2020 2019
2019
Group and Company
Company
Group and
Group and Company
Company 2020
Accumulated
2020
Accumulated Cost
Cost or
or 2019
Accumulated
2019
Accumulated
Accumulated
Accumulated Cost
Cost or
or Accumulated
Accumulated
Cost
Cost or
or revaluation
revaluation amortisation
amortisation Carrying
Carrying value
value revaluation
amortisation Carrying
Carrying value
value
Cost
Cost or
or revaluation
Accumulated
amortisation
Accumulated Carrying
Carrying value
value revaluation
Cost
revaluation
Cost or
or amortisation
Accumulated
amortisation
Accumulated Carrying
Carrying value
value
Computer
Computer software
Computer software and
software and Cost amortisation Carrying value revaluation amortisation Carrying
Computer
licences software and
and Cost or
or revaluation
revaluation
39 amortisation value
Carrying 20 824 revaluation
35 amortisation
(9 Carrying value
value
25
licences
licences
Computer software 39 642
39 642 (18 (18
817)817) 20 824
20 35 484
35 484
484 (9 970)
(9 970)
970) 25 513
25 513
513
licences
and 39 642
642 (18 (18
817)817) 20 824824 35 484 (9 970) 25 513
Total
licences
Total 39 39 642
642 (18
(18 (18 817)
817)
(18 817)
817) 20
20 824824
20 824
20
824 484
35 484
35
35 484 (9
(9 970)
(9 970)970) 513
25 513
25
25 513
licences
Total
Total 39 39 642
39 642
642 (18 817)
(18 (18
817)817) 20 20 824
20 824
824 35 484
35 484 (9
(9 970)970) 25 513
25 513
Total
Total 39 642
642
39 642
39 (18 817)
(18 (18
817)817) 20 20 824
20 824
824 35 484
35 484 (9 970)
(9 970) 25 513
25 513
Reconciliation of Intangible Assets – 2020

Reconciliation of Intangible Assets
Reconciliation
Reconciliation of
Reconciliation of
of Intangible
Intangible Assets
Intangible –– 2020
Assets
Assets – 2020
2020– 2020
Reconciliation
Reconciliation of
Reconciliation
of Intangible
of
Intangible Assets
property,
Assets – 2020
plant and equipment – 2020
Reconciliation of Intangible Assets –– 2020
2020
Reconciliation of Intangible Assets – 2020
Opening balance Additions Revaluation Retirement Transfers Amortisation Total
balance
Opening balance
Opening Additions
Additions Revaluation
Revaluation Retirement
Retirement Transfers
Transfers Amortisation
Amortisation Total
Total
Opening balance Additions Revaluation Retirement Transfers Amortisation Total
Opening balance
Opening balance Additions
Amortisation Total
Total
Computer
Computer software
software and
and
Computer
Computer software
software and
and
licences
licences 25 51325 513 82 82 - - - - - -- (4 770)
(4 770) 20 82420 824
licences
Computer
licences software 25 51325 513 82 82 - - - - - -- (4 770)
(4 770) 20 82420 824
and
licences 25 82 (4 770)
(4 770) 20
licences 25 513
51325
25 513
513 82 82
82
-- -- -- -- -- --
- (4 770)
(4 770) 20 824
82420
20 824
824
25 51325 513 82 82 - - - - - - (4 770)
(4 770) 20 82420 824
Reconciliation
Reconciliation of
of Intangible
Intangible Assets
Assets –– 2019
2019
Reconciliation
Reconciliation of
Reconciliation of
ofIntangible
Intangible Assets
Assets
Intangible –– 2019
Assets 2019– 2019
Reconciliation
Reconciliation of Intangible
ofIntangible Assets
Assets – 2019
Reconciliation of Intangible Assets –– 2019
2019
Reconciliation of Intangible
Reconciliation Assets
of property, – 2019
plant
Openingand equipment – 2020
Additions Revaluation Retirement Transfers Amortisation Total
Opening balance
Opening balance Additions
Amortisation Total
Total
Opening balance
balance Additions Revaluation Retirement Transfers Amortisation Total
Opening
Opening balance
balance Additions
Amortisation Total
Total
Computer
Computer software
software and
and
Computer
Computer software
software and
and
licences
licences 29 09929 099
099 - -- - -- (45) (45)
(45) 28 28
28 (3
(3 569)
(3 569)
569) 25 51325 513
licences
Computer
licences software 29
29 09929
29 099
099 - -- - -- (45) (45)
(45) 28 28
28 (3
(3 569)
(3 569)
569) 25 51325 513
and
licences 29 099 (45) (45)
(45) 28 28 (3
(3 569)
(3 569)
569) 25 25 513
licences 29 09929
09929
29 099
099
-- --
-
-- --
- (45) (45)
(45) 28 28
28 (3
(3 569) 569)
(3 569) 25 513
51325
25 513
513
29 09929
29 099
099 - -- - -- (45) (45)
(45) 28 28
28 (3
(3 569)
(3 569)
569) 25 51325
25 513
513
71
: 011
71 4400
471 4400
4400
112 SENTECH 122
122 REPORT 2019/20
112
71
r:736
0860
736 832
4400
832
111736 832
122
SENTECH INTEGRATED
INTEGRATED
122 REPORT 2019/20
11211
471
736 471
4400
832 4595 122
SENTECH INTEGRATED
122 INTEGRATED REPORT 2019/20
al:
11 +27
471 11 471 4595
4595
For Notes
the yearto the Financial
ended Statements
31 March 2020
6C Leases
6C Leases
Head Office
6C Leases
Octave Street
Postal Address
Right use of Assets
Radiokop, 2040
Private Bag X06

Right of use
Right of
ofuse
ofofAssets
Assets
Honeydew, 2040
Balance at beginning of the
year Additions Depreciation Balance at 31 March 2020
Buildings - 7,624 (1,883) 5,741
a nd - 10,602 (2,018) 8,584
Computer, technical and office
eq
uipment - 1,330,291 (138,512) 1,191,779
Total - 1,348,517 (142,413) 1,206,104
Sender Technology Park (STP)

Lease liability included in the statement of financial position at 31 March 2020 (1,577,994)
Current (111,301)
Non-Current (1,466,693)
Maturity analysis – contractual undiscounted cash flows
Within one year 111,301

One to five years 660,012
More than five years 806,681
Total undiscounted lease liabilities at 31 March 2020 1,577,994
Amounts recognised in profit or loss
www.sentech.co.za
Description 2020
Telephone: 011 471 4400

Call Center: 0860 736 832
Depreciation 142,413
Interest expense on lease liability 158,554
Expense relating to short-term leases where practical expedient is applied -
Expense relating to low-value asset where practical expedient is applied -
Gains or losses from arising sale and leaseback transactions -
Amounts recognised in cash flow statement
Total cash outflow for leases (84,879)

1 471 4400
011
:60 471 4400 SENTECHSENTECH
INTEGRATED
INTEGRATED
REPORT 2019/20
REPORT 2019/20
736
113 832 123
0860
r:27 112 832
al: +27 11 471 4595
Notes to the Financial Statements for the year ended 31 March 2020
Notes totothe
Figures
Notes
Notes in theFinancial
Rand
to thethousand
Financial
Statements
Statements for for
thethe year
year ended
ended 31 March
31 March 2020
2020
7.
For the INVESTMENTS
Notes toended
year 31INMarch
SUBSIDIARIES
2020 for the year ended 31 March 2020
Notes
Figures
tointhe
Figures Rand
in Rand
Financial
thousand Statements
thousand
For
Figures the
7. year ended
inINVESTMENTS
Rand thousand31 March 2020
IN SUBSIDIARIES
Notes to
Figures the
in
7. INVESTMENTS
Notes Financial
Rand thousand
to the Statements
IN SUBSIDIARIES
Financial Statements for the year ended 31 March 2020
7. INVESTMENTS
For the year ended 31INMarch
SUBSIDIARIES
2020 % holding % holding Carrying Carrying
2020
7. INVESTMENTS
FiguresRand
Figures
IN
in RandSUBSIDIARIES
thousand amount
Name ofinin
Figures company
Rand
thousand
thousand 2020 2019 amount 2020
7. INVESTMENTS IN SUBSIDIARIES % holding
7. INVESTMENTS IN SUBSIDIARIES % holding % holding
% holding Carrying
Carrying 2019
Carrying
Carrying
Infohold (Pty) Limited % holding
100,00% %100,00
holding % Carrying - Carrying
amount
amount -
7.
Name Name
INVESTMENTS
7. INVESTMENTS of of company
company IN SUBSIDIARIES
IN SUBSIDIARIES 2020
2020 2019
2019 amount
amount 2020 2020
Vivid 2019 -
amount
2019
NameMultimedia
of companyPty Limited 100,00%
2020 100,00
2019 % amount 2020 -
Infohold (Pty) Limited 100,00%
% holding %100,00
% %
holding Carrying- - Carrying 2019
Carrying - -
REPORT
Infohold
SENTECH (Pty) Limited
International (Pty) % holding
100,00% %100,00
holding Carrying
100,00% 100,00
100,00 %
% -- --
Limited
VividVivid Multimedia
Multimedia Pty Pty Limited
Limited 100,00%
100,00% 100,00
100,00 % % - - amount amount - -
Name Name of company
of company 2020 2019
2019 amount
amount 2020 2020
Infosat
Vivid PtyInternational
Limited
Multimedia Pty Limited 100,00% 100,00 % - 2019
2019 -
SENTECH
SENTECH International (Pty)(Pty)
100,00%
100,00% 100,00
100,00 %
100,00 %
% - -- - --
Infohold
Limited(Pty) Limited
SENTECH International (Pty)
Limited 100,00% 100,00 % -
-- ---
100,00% 100,00 %
Limited
Infosat
Vivid
Infosat
Vivid Pty Limited
Multimedia
Pty Limited
Limited 100,00%
100,00% 100,00
100,00 % % - - - -
The subsidiaries
Infosat above
PtyInternational
Limited are unlisted and registered
100,00% in South Africa.100,00 % - - - -
SENTECH
SENTECH International (Pty)(Pty) -- - -- -
100,00%
100,00% 100,00
100,00 % %
Limited
Limited - -
The The
SENTECH subsidiaries
SOC Limited
subsidiaries above above
are are
holds unlisted
100%
unlisted ofand and
Infohold registered in South
Pty Limited,
registered in South VividAfrica.
Africa.Multimedia Pty Limited and SENTECH- International -
ANNUAL
Infosat
Infosat Pty Pty Limited
Limited 100,00%
100,00% 100,00
100,00 % % - -
The subsidiaries
TheLimited.
Pty subsidiaries above
abovePty
InfoHold are unlisted
areLimited
unlisted and registered
andinregistered
hold. in
2010. in South Africa. South Africa.
- - - -
SENTECH
SENTECH SOCSOC Limited
Limited holdsholds
100%100% of Infohold
of Infohold Pty Pty Limited,
Limited, Vivid
Vivid Multimedia
Limited andand SENTECH
SENTECH International
International
SENTECH The
SOC Limited
subsidiaries
holds 100% of Infohold PtyinLimited, Vivid Multimedia Pty Limited and SENTECH In-
SENTECH
ThePty
Pty
The
SOC
Limited.
subsidiaries
Limited.
subsidiaries
Limited
InfoHold
ubsidiaries inabove
InfoHold
above
above
holds
Pty are
Pty
are
are
unlisted
100%
Limited
unlisted
Limited
question of
unlistedand
arehold. and
hold. inregistered
Infohold Ptythus
2010.
inregistered
dormant
and 2010.
and Limited,
in South
registered thereSouth
in
VividAfrica.
Africa.
are
South noMultimedia
transactions.
Africa.
Pty Limited and SENTECH International
ternational
Pty Limited.Pty InfoHold
Limited.Pty InfoHold Pty in
Limited hold. Limited
2010. holds 100% of the shares of its subsidiary InfoSat Pty Limited.
InfoSat Pty
TheSENTECH
SENTECH Limited’s
Accounting
SOCSOC Limitedbusiness
Authority holds operations
approved
100% the
of windingwere
Infohold up discontinued
ofLimited,
Pty Infohold
Limited, Pty inMultimedia
2010.
Limited
Vivid and InfoSat
Pty Pty Limited.
Limited and SENTECH International
SENTECH
SENTECH
All the SOC
SOC Limited
Limited
Limited
subsidiaries holdsholds
inholds 100%
question 100%
100% of
are of
of Infohold
Infohold Pty
Infohold
dormant andPty
Limited,
Pty
thus Limited,
there Vivid
Vivid Vivid
are no Multimedia
Multimedia Pty Pty
Multimedia
transactions. Limited
Limited
Pty andand
Limited SENTECH
SENTECH International
International
and SENTECH International
All
SENTECH the subsidiaries
SOC
Pty Limited. Limited
InfoHold in question
holds
Pty are
100%
Limited dormant
of
holds and
Infohold
100% thus
ofPtythere
the are
Limited,
shares nooftransactions.
Vivid
its Multimedia
subsidiary InfoSatPty Limited
Pty Limited. and SENTECH
InfoSat In-
Pty Limited’s
Pty
All Pty Limited.
PtyLimited.
Limited.
the InfoHold
InfoHold
InfoHold
subsidiaries in Pty Pty
Pty Limited
Limited
Limited
question arehold. hold.
hold. in 2010.
inand
in 2010.
dormant 2010.
thus there are no transactions.
All the subsidiaries
ternational
business Pty Limited.
operations in question
InfoHold
were are Pty dormant
theLimited
discontinued in and
holds
2010. thus
of100%there are
of Pty
the no transactions.
shares of its subsidiary InfoSat Pty Limited.
TheThe Accounting
Accounting
company Authority
isAuthority
reconsidering approved
approved
the winding the winding
winding
up ofup up
theof Infohold
Infohold
two Pty Limited
Limited
subsidiaries, andand
Infohold PtyInfoSat
InfoSat andPty
Ltd Pty its Limited.
Limited.
subsidiary Infosat Pty
All
ltdthe
in subsidiaries
Allview of the factinthat question are dormant
the licences attachedand and thusthere
to these there are
subsidiariesnonocan transactions.
be used to pursue strategic initiatives.
INTEGRATED
All the
The Accounting the subsidiaries
subsidiaries in question
in question
Authority are are
approved dormant
dormant and thusthus
the winding there
up of are
areInfohold transactions.
no transactions.
Pty Limited and InfoSat Pty Limited.
TheThe company
company is reconsidering
is reconsidering thethe winding
winding upthe
up of of the
twotwo subsidiaries,
subsidiaries, Infohold
Infohold Pty Pty
Ltd Ltd
andand its subsidiary
its subsidiary Infosat
Infosat Pty Pty
The
The Accounting
The
ltd inAccounting
company
view is
of Authority
the Authority
reconsidering
fact that approved
approved
the
the winding
licences the
the winding
winding
up of
attached the up
to up
twoof of
these Infohold
Infohold
subsidiaries,
subsidiaries Pty
Pty LimitedLimited
Infohold
can beand
Pty
used and
InfoSat
Ltd
to InfoSat
and Pty
its
pursue Pty Limited.
Limited.
subsidiary
strategic Infosat Pty
initiatives.
ltd in view ofisthe
The company fact that the licences
reconsidering attachedup
the winding to these
of the subsidiaries can be usedInfohold
two subsidiaries, to pursue strategic
Pty Ltd initiatives.
and its subsidiary
ltd in view of the fact that the licences attached to these subsidiaries can be used to pursue strategic initiatives.
The company is reconsidering the winding up of the two subsidiaries, Infohold Pty Ltd and its subsidiary Infosat Pty
ltd inThe company
view is reconsidering
of the fact the winding
that the licences up of to
attached thethese
two subsidiaries,
subsidiaries Infohold
old bePty
canPty Ltd Ltd and
andto
used its subsidiary
itspursue
subsidiary Infosat
Infosat
strategic Pty Pty
initiatives.
ltdview
in view of the
factfact
thatthat
thethe licences attached to these subsidiaries
cancan be used to pursue
ltd in
The company
8. INVENTORIES
ofisthe
reconsidering licences
the attached
winding to these
up subsidiaries
of the two be used
subsidiaries, to pursue
Infohold Ptystrategic
strategic andinitiatives.
Ltd initiatives.
its subsidiary
8. 8. INVENTORIES
INVENTORIES
Infosat Pty ltd in view of the fact that the licences attached to these subsidiaries can be used to pursue
strategic8. initiatives.
INVENTORIES GROUP & COMPANY
8. INVENTORIES
8. INVENTORIES
Figures in Rand thousand 2020 2019
8. INVENTORIES GROUP & COMPANY
Consumables GROUP -& COMPANY -
Head
8. 8. Office
INVENTORIES
INVENTORIES
Figures
Figures in in Rand
Rand thousand
thousand Telephone:
20202020 GROUP 011 471 4400
& COMPANY 2019
2019
Inventories 70 280 74 335
Sender
Figures Technology
in Rand
Consumables
Consumables
thousand Park (STP) Call Center: 20200860
70GROUP - -
280 & COMPANY
736 832 2019
74 335- -
Octave Street GROUP -& COMPANY
Consumables
Inventories
Inventories International: +27 11 471 4595 (774900)
70 280
70 280 74 -335
335
Inventories
Figures
Figures in (write-downs)
in Rand
Rand thousand
thousand 20202020 (15 587) 2019
2019
Radiokop,
Inventories 2040 70
70 280
70 280
280 74 335
74 74 335
Consumables
Consumables 54 693- - 66 335
435- -
Inventories
Inventories (write-downs)
(write-downs)
70
(15 (15
280
587)587)
74 335
(7 900)
(7 900)
Inventories
Inventories 70 70 280
280 74 335
74900)
335
Postal
Inventories Address
(write-downs) www.sentech.co.za
(15 587)54
54 693 693includes expenditure incurred (7
66n435the
The cost of inventories is based on the weighted average cost principle, and
70 280 66 435
70 280 74 74 335
335
in acquiring
The the inventories
cost of inventories is based onand the bringing them tocost
weighted average their existing
principle, and 54 693
location
includes and condition.
expenditure Net
incurred inrealisable
acquiring value
thethe
ncurred in acquiring
Inventories (write-downs) (15 (15
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is
value
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inventories and estimated
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selling
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theirthe inweighted
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estimated slow-moving
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Net
and inventories.
54
realisable
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693 693
value
expenses. is the estimated selling price
66 in the
435
The cost
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of business, isless
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costs of completion cost principle,
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66 435
ordinary
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basedthe estimated
and
on the costs
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weighted of completion
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their selling
existing
principle, and expenses.
location
includes and
The cost of inventories is based on the weighted average cost principle, and includes expenditure incurred in acquiring thethe condition.
expenditure incurred Net
in realisable
acquiring
Where
Where n necessary,
Where necessary, a provision
a them istomade
provision isfor obsolete,
made slow-moving
-moving
for obsolete, and and defective
defective
slow-moving inventories.
inventories.
and defective inventories. -
port@sentech.co.za
inventories
inventories and and bringing
bringing them to their their existing
existing location
location and and condition.
condition. NetNet realisable
realisable valuevalue is the
is the estimated
estimated selling
selling price
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in the
Where
tion necessary,
andcourse
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expenses.
of business, is made
less thefor obsolete,
estimated slow-moving
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and inventories.
selling expenses.
ordinary of business, less the estimated costs of completion 124 and selling expenses.
t@sentech.co.za
TheThe inventory
inventory heldheld is not
is not encumbered.
encumbered. Inventory
Inventory writewrite
downdownis asisaas a result
result of stock
of stock thatthat
cancan no longer
no longer be be
Where necessary, a provision is made for obsolete, slow-moving
used in the business of SENTECH for over 5 years. In124
Where n -moving andand defective
defective inventories.
addition, there were write offs of stock the related to a
inventories.
124
smart city business line that had been discontinued 124 some years back.
The inventory held is not encumbered. Inventory write down is as a result of stock that can no longer114 be
ch.co.za

used in the business of SENTECH for over 5 years. In addition, there were write offs of stock the related to a
124124
113city business line that had been discontinued some years back.
smart
o.za

SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
2019/20 114
The inventory held is not encumbered. Inventory write down is as a result of stock that can no longer be used in the business
ofThe
SENTECH for held
inventory overis5 not
years. In addition,Inventory
encumbered. there were write
write offs isofasstock
down the related to a smart city business line inthat had been
The
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of 9. TRADE
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SENTECH AND
forheld
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years.RECEIVABLES
encumbered.
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9. TRADE
discontinued ANDyears
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back.
ofSENTECH
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for over
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9.9.TRADE
9. TRADE
TRADE AND
AND
AND OTHER
OTHER RECEIVABLES
RECEIVABLES
RECEIVABLES
discontinuedsome
discontinued
discontinued someyears
some yearsback.
years back.
back.
NotesNotesto the
9. TRADE to
ANDFinancial
the Statements
Financial
OTHER Statements
RECEIVABLES GROUP & COMPANY
GROUP & COMPANY
For the year
9. TRADE ended 31 March
AND OTHER 2020
RECEIVABLES
Notes
For the
For to
year
9.9.TRADE
9. TRADE
TRADE
the
ended
theinyear
Figures AND
AND
Financial
31 March
ANDended
Rand OTHER
OTHER
OTHER 31
thousand Statements
20202020
March
RECEIVABLES
RECEIVABLES
RECEIVABLES 2020 GROUP&
GROUP
GROUP &&COMPANY
COMPANY
COMPANY 2019
9. TRADE AND OTHER RECEIVABLES
9.For
TRADE
the
Trade AND
year OTHER
ended
receivables 31RECEIVABLES
March 2020 367 061 417 512
9. TRADE
FiguresAND
Figures
Figures in
in
in OTHER
Rand
Rand
Rand
Trade receivables RECEIVABLES
thousand
thousand
thousand 2020
2020
2020 367 061 2019
2019
2019 417 512
9.
9. TRADE TRADE
Less:
Trade
Trade
Trade AND AND
Impairment
receivables
receivables
receivables OTHER
OTHER RECEIVABLES
RECEIVABLES GROUP
(56
367159)
367
367 & COMPANY
061
061
061 (44
417844)
417
417 512
512
512
Less: Impairment GROUP
(56 159)& COMPANY (44 844)
Figures
Net trade
Less:
Less:
Less: in receivables
Rand thousand
Impairment
Impairment
Impairment (562020
GROUP
GROUP
GROUP
310
(56
(56 902&&COMPANY
&
159)
159)
159) COMPANY
COMPANY (442019
372
(44
(44 668
844)
844)
844)
Figures
Net trade in receivables
Rand thousand 3102020
902 3722019
668
Trade
Figures
Figures
Figures
Other receivables
ininreceivables
in Randthousand
Rand
Rand
receivables
Nettrade
trade thousand
thousand
receivables 2020
2020
2020 367 061
9 362
310 2020
902 2019
2019
2019 417 512
6 2019
372 722
668
Net
Net trade
Trade receivables 310
310 902
902 372
372 668
668
Other receivables
receivables 367 061
9 362 417 512
6 722
Less:
Trade
Trade
Trade Impairment
Deposits
Other receivables
receivables
receivables
receivables (56
367
367
367
13 159)
061
061
061
289 (44
417
417
417
11 844)
512
512
512
467
Other
Other
Less: receivables
receivables
Impairment (56999362
362
362 666722
722
722
Deposits 13159)
289 (44
11844)
467
Net trade
Less:
Less:
Less:
Deposits
Deposits
Deposits receivables
Impairment
Impairment
Impairment 310
(56
(56
(56 902
159)
13159)
13
13 159)
289
289
289 372
(44
(44
(44 668
844)
11844)
11
11 844)
467
467
467
Loans
Net andreceivables
trade receivables 332
310 553
902 390
372 857
668
Loans
Other and receivables
receivables 332 553
9 362 390 857
6 722
Nettrade
Net
Net trade
trade receivables
receivables
receivables 310
310
310 902
902
902 372
372
372 668
668
668
Prepayments
Loansand
Other
Loans
Loans andreceivables
and receivables
receivables
receivables 332
332 702
553
9 362
332 553
553 3909 722
390
6
390 900
857
857
857
Prepayments
Deposits 9
13 702
289 9
11 900
467
Otherreceivables
Other
Other receivables
receivables 999362
362
362 666722
722
722
Total trade and other receivables
Prepayments
Deposits
Prepayments
Prepayments 343
13 255
999702
702
289
702 400
11 757
999900
900
467
900
Total trade and other receivables
Deposits 34313 255
289 40011 757
467
Deposits
Deposits
Loans and receivables 13
13
332 289
289
553 11
11
390 467
467
857
Totaltrade
Total
Total
Loans trade
trade
and andother
and
and otherreceivables
other
receivables receivables
receivables 343553
343
343
332 255
255
255 400857
400
400
390 757
757
757
Prepayments
Loans
Loans
Loans andand receivables
and receivables
receivables 3329
332 702
553
332 553
553 3909
390 900
857
390 857
857
Prepayments 9 702 9 900
Total trade and
Prepayments
Prepayments
Prepayments
Receivables from other
related receivables
parties for both Group and Company included343 255
9702
702 and other receivables amounts
in99trade
702 400 999900757
900
900 to
Total trade and
Receivables from other
related receivables
parties for both Group and Company included343 255 and other receivables amounts
in trade 400 757 to
R250million
Total
Total
Total tradeand
trade
trade (2019
and
and other
other
other – receivables
R1 452k).
receivables Trade andGroup
otherand receivables include 343 amounts
343 255 and owing from Community 400 Radio
757
Receivables
Receivables
Receivables
R250million from
from
from
(2019 – receivables
related
related
related partiesfor
R1 parties
parties
452k). forboth
for
Trade both
both andGroup
Group
other and Companyincluded
andreceivables
Company
Company include 343
included
included in
in 255
255
intrade
trade
trade
amounts and
and other
other
other
owing receivables
receivables
receivables
from 400
400
amounts
amounts
amounts
Community 757
757
Radio to
to
to
Broadcasters
Receivables
R250millionfrom of R
(2019 63m
related – (2019
R1 –
parties
452k).R43m) for
Trade bothand Group
other and
receivablesCompany include included
amounts in
owingtrade
fromand other
Community receivables
Radio
R250million
R250million
Broadcasters (2019
(2019
of Rrelated ––
63m (2019R1
R1 452k).
452k). Trade
– R43m) Trade and
and other
other receivables
receivables include
include amounts
amounts owing
owing from
from Community
Community Radio
Radio
Receivables from parties for both Group and Company included in trade and other receivables
amounts to
Receivables R250million
Broadcasters
Broadcasters
Broadcasters of
ofofRRR 63m
63m
fromrelated63m (2019
(2019
(2019
(2019
related(2019 parties –R43m)
R1for
–––R43m)
R43m)
for 452k).
both Trade
Group andand
Companyother receivables
included inincluded
tradeinclude
and in amounts
other owing
receivables from
amounts toCom-
Receivables
amounts to
Receivables
from
R250million
from
parties
– R1 both
452k). Group
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amounts andowing
other receivables
from toCom-
Receivables
munity Radio fromrelated
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parties
of R for both
63m for(2019 Group
both – Group
R43m) Company
and Companyincluded in trade
included and other
in trade receivables
and other amounts
receivables amounts
munityR250million
amounts Radio
Receivables (2019
to R250million
Broadcasters
from(2019 – R1(2019
related 452k). Trade
–63m
of R452k).
parties R1both
for andGroup
452k).
(2019
both other
Trade
– R43m) receivables
andand other
Company include
included amounts
receivables
intrade
trade owing
include
and from
amounts
other Community
owing
receivables amounts Radio
from toCom-
Receivables
Receivables
Impairment
to R250million
R250million from
from
losses
(2019 related
related
– R1–parties
parties
R1
452k). for
for
Trade both
Trade
andGroup
Group
and
other and
and Company
Company
other included
receivables
receivables included in
in
includeinclude trade
amounts and
and other
other
amounts
owing receivables
receivables
owing
from fromamounts
amounts
Community Community
Radio to
to Radio
Impairment
Broadcasters
munity Radio
R250million losses
of R 63m– (2019
Broadcasters
(2019 R1 – R43m)
of
452k).R 63m
Trade (2019
and –
otherR43m)
receivables include amounts owing from Community Radio
R250million
R250million
Broadcasters
Broadcasters
The (2019
(2019
of
reconciliation of R
R 63m –
63m–
of theR1
R1 452k).
452k).
(2019
(2019 – Trade
Trade
R43m) and
and other
other receivables
receivables include
include amounts
amounts
– R43m) in the impairment in respect of trade receivables during the year was as
movements owing
owing from
from Community
Community Radio
Radio
Impairment
Impairment
Impairment
Impairment
The losses losses
losses
losses
reconciliation of the movements
Impairment
Broadcasters
Broadcasters
Broadcasters
follows: lossesof
ofofRRR63m
63m
63m (2019
(2019
(2019 R43m) in the impairment in respect of trade receivables during the year was as
–––R43m)
R43m)
The reconciliation
The
The
The reconciliation
reconciliation
reconciliation of the
of movements
the movements in the
ininthe impairment
theimpairment
impairmentin in
ininin respect
respect of
oftrade
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receivables duringduring
theyearthe
year was year as was
Impairment
The follows:
reconciliation
Impairment losses of the movements in
losses of
of the
the movements
movements in the
the impairment
impairment respect
respect
respectof
of trade
of receivables
receivables
trade during
during
receivables the
the year
during thewas
was yearas
as was
as follows:
The follows:
follows:
follows:
Impairment
reconciliation lossesofof the movements in the impairment in respect of trade receivables during the year was
as follows:
The reconciliation
Impairment losses the movements in the impairment in respect of trade receivables during the year was as follows:
as follows:
Impairmentlosses
Impairment
Impairment losses
losses Telephone:GROUP
Telephone: (56
011
011 159)&
471
471COMPANY4400
4400
Balance
Balance
Balance atthe
at
at thebeginning
the beginning
beginning ofof
of theyear
the
the year in
year GROUP
(56(44
(44
(44 &
845)
845)
845) COMPANY
159)receivables (40
(40
(40 406)
406)
406)
Thereconciliation
The
The reconciliation
reconciliation of
ofofthethe
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movements
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theimpairment
the impairmentCall
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GROUP
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COMPANY
832
832
duringthe
during
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the year
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waswas
2019as as
as
follows:
follows:
follows: (56
(11
(11 2020
159)
(11314)314)
314) 2019
(Increase)/Decrease
(Increase)/Decrease
(Increase)/Decrease ofimpairment
of
of impairmentloss
impairment loss
Balance at the beginning
The reconciliation the yearlossin the impairment
of theofmovements Call Center:
in respect (44
of(44 0860
trade845)
2020 736 832
receivables during the year(40(8(8406)
(8
was 917)
917)
917)
2019 as
recognised
Balance
The reconciliation of the movements in the impairment in respect of trade receivables during the year(40
recognised
recognised at the beginning of the year 845) was 406) as
follows:
(Increase)/Decrease of impairment loss (11
(44 314)
845) (8 917)
Balance at the beginning
The reconciliation of theofofmovements
the year (40
(8was 406)
917)
follows:
(Increase)/Decrease
Balance
Balance
Balance atthe
at
at thebeginning
the beginning
beginning of impairment
of theyear
of the
the year
year loss in the impairment in respect of(11 (56
(56trade
(44
(56
(44
(44 845)receivables during the year
314)
160)
845)
845)
160)
160) (40
(49
(40
(40
(49
(49 406)
323)
406)
406)
323)
323)
as
recognised (8 917)
follows:
recognised
(Increase)/Decrease of impairment loss (11 314)
Bad
Bad
Bad DebtWritten
Debt
Debt WrittenOff
Written
(Increase)/Decrease
(Increase)/Decrease
(Increase)/Decrease Off
Off ofimpairment
of
of impairmentloss
impairment loss (11314)
(11
(11 314)
314)--- 444478 478
478
Balance
recognisedat the beginning of the yearloss (44 160)
(56 845) (40
(49
(8(8323)
(8 406)
917)
917)
917)
recognised
Balance
recognised
recognised at the beginning of the year (44 845)
(56 160) (40
(49 406)
323)
(56159)
(56
(56 159)
159) (44
(44
(44 845)
Bad Debt at
Balance Written
(Increase)/Decrease Offof impairment
the beginning of the year loss (11 314)
(44314)
(56
(11
-
845)
160) (40
(494845)845)
478
406)
323)
Bad Debt Written Off
(Increase)/Decrease of impairment loss (56
(56
(56 160)
160)-
160) (8 4
(49323)
(49
(49 917)
478
323)
323)
recognised (56 (8 845) 917)
recognised
Bad Debt Written Off (11159)314)- (44 4
(Increase)/Decrease
The
The
The
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ageing
Debt
Debt oftrade
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Office Telephone:
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and
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The ageing of oftrade receivables 238atat 6the
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The ageing trade receivables (44
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0022 TTTR
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2
Address
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Bag
60
Bag
Bag 60 RRO
days
30days
30
30
O
days
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X06
2040
days
30days
O
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80
80
80 750
80750
5 312
80
5
750
750
750
55312
312
87
60X258787070
87
87
25
g142
070
070
070
a070
142
B etavirP
Past
Past
Past due
due
due 60
60
60 days
days
days 5 312
312 25142
25
25 142
142
Honeydew,
Private
Past
Pastdue Bag
due 90 2040
60days X06
days and more 125 2725315 312 0402932 25 ,w 559
142edyenoH
Honeydew,
Honeydew,
Past
Pastdue
Honeydew,
Past
Past due90
due
due 90
90 2040
90days 2040
2040
days
days
days and
andmore
and
and more
more
more 125
125
125
272
272315
272
272 315
315
315 293
293
293
293 559
559
559
559
The
Honeydew,
Net breakdown
Pastloans
due and
90 days of the aging
2040
receivables more and impairment of trade receivables: 125 367
272061 315 417
293512
The
Net
Net breakdown
loans
loans and
and of and
the aging
receivables
receivables and impairment of trade receivables: 125 367
367061
367
367 061
061
061 417
417512
559
512
512
Net
Net
2020 loans
loans and
and receivables
receivables 125 417
417 512
The breakdown
Net loans
2020 of the aging and impairment of trade receivables:
and receivables 367 061 417 512
2020
125
125
Thebreakdown
The
The breakdownof
breakdown ofthe
of theaging
the agingand
aging andimpairment
and impairmentof
impairment oftrade
of tradereceivables:
trade receivables:
receivables:
2020
2020
2020
30
Total > 90 Days 30 Current
Total > 90 Days Days Current
Days 30
30
30
Trade Receivables 367 Total
Total
Total
061 >>>271
9090Days
90 Days
Days
700 60Days
60
60 Days
Days5 312 81 588 Current
Current
Current
8 461
Days
Days
Days
115 Trade Receivables 367 061
SENTECH
271 700
INTEGRATED REPORT
5 312
2019/20
81 588 8 461
367
367
367 061
061
061
(56SENTECH
159) 271
271
271
(52 700
700
700
034)
INTEGRATED REPORT 5
55 312
312
312
(1 583)
60 Days 81612)
81
81
(1
2019/20 (1 588
588
588 8461
461
88(930)
461 115 114
Trade
Trade
Trade
Less: Receiv
Receiva
Receiva
Impairm
(56 159)SENTECH(52 034)
INTEGRATED
60 (1 583) 2019/20
REPORT
Days 612) (930) 115 Less: Impairm
Less: Impairment
SENTECH
SENTECH
(56159)
159)
INTEGRATED
INTEGRATED
(52034)
034)
REPORT
REPORT (1583)
2019/20 (1 612)
2019/20
583) (930)
Less:
Less:
Net Impairment
Impairment
trade receivables (56
(56 159) (52
(52 034) (1
(1 583) (1
(1 612)
612) (930)
(930)
Past
Past due
due
Pastdue 60
60
due90
6030days
60days
daysand more 5 312
272 315 25
25 142
142
87142
25
25 070
142
Past days 293 559
Past
Net
Past
Past due
Pastloans
due
due 90
60
due90 days
60days
and
60
90
90 and
andmore
receivables
days
days and
and more
more
more 272
367
272
272
272 315
555312
312
061
315
312
315
315 293
417
25
25 559
512
25142
293
293 142
559
559
142
Past due 90 days and more 272 061
367 315 293
293 559
Net loans and receivables 417 559
512
Net
Pastloans
Past
Past
Net
Net
Net due90
due
due
loans
loans
loans and
90
90 receivables
days
days
days
and
and
and andmore
and
and more
more
receivables
receivables
receivables 367
272061
272
272
367
367
367 315
315
061
315
061
061 417
293512
293
293
417
417
417 559
559
559
512
512
512
Net loans and receivables 367 061 417 512
Netloans
Net
Net loansand
loans andreceivables
and receivables
receivables 367061
367
367 061
061 417
417
417512
512
512
The breakdown of the aging and impairment of trade receivables:
Notes
2020
The
to
The breakdown
breakdown
theof
Financial
of the
the aging and
Statements
aging and impairment
impairment
of trade receivables:
of
Notes
Notes The
The
The
2020 toto the
the
breakdown
breakdown
breakdown Financial
Financial
of
of
of the
the
the aging
aging
aging Statements
Statements
and
and
and impairment
impairment
impairment oftrade
of
of tradereceivables:
trade
trade receivables:
receivables:
receivables:
For
The the year ended
breakdown 31 March
of the aging 2020 of
and impairment trade receivables:
For 2020
Forthe
the
2020year
Theyear
2020
2020
The
The ended
ended
breakdown
breakdown
breakdown of
of31
of 31
the
the
theMarch
March
aging
aging 2020
2020
agingand
and
andimpairment
impairment
impairmentof
of
oftrade
trade
tradereceivables:
receivables:
receivables:
2020
2020
2020
2020
Thebreakdown
breakdown ofthe
the aging and impairment oftrade
tradereceivables:
receivables: 30
The The of
breakdown of aging
the and
aging andimpairment
impairment
Total of
of
> 90 Daystrade receivables:
60 Days 30 Current
Total > 90 Days 60 Days Days30 Current
2020
20202020 Total >>90
90Days 60
60Days
Days30
30
30 Current
Trade Receivables Total Days Total
367TotalDays
061
Total
Total >>>>271
90
90
271
90 Days
Days
700
90Days
Days 60
60 Days
Days
60Days
60 5 312
Days 8130588
Days Current
Current
Current
8 461
Current
Trade Receivables 367 061 700 5 312 Days
Days
Days
81
Days 588 8 461
Total
Total
Total >>>(52
9090Days
90 Days
Days 60Days
60
60 Days
Days 30
30
30 30
Days
Days
Days Current
Current
Current
Trade
Trade
Trade
Trade
Less: Receivables
Receivables
Receivables
Receivables
Impairment 367
367
367
367
(56 061
061
061
061
159) 271
271
271
271 700
700
700
700
034) 555583)
(15 312
312
312
312 81
8181
81
(1 588
588
588
588
612) 88(930)
8 461
8461
461
461
Trade Receivables
Less: Impairment 367
(56 061
159) 271
(52 700
034) (15583)
312 Days
81612)
(1 588 8 461
(930)
Trade
Trade
Trade
Less:
Less:
Less:
Less: Receivables
Receivables
Receivables
Impairment
Impairment
Impairment
Impairment 367159)
367
367
(56
(56
(56
(56 061
061
061
159)
159)
159) 271034)
271
271
(52
(52
(52
(52 700
700
700
034)
034)
034) (1555583)
(1
(1
(1 312
312
312
583)
583)
583) 81
(181612)
81
(1
(1
(1 588
588
588
612)
612)
612) 8(930)
461
88(930)
461
461
(930)
(930)
Net trade
Less: receivables
Impairment (56 159) (52 034) (1 583) (1 612) (930)
Net trade receivables
Less:
Less:
Less: Impairment
Impairment
Impairment 310
(56
(56 902
(56159)
159) 219
(52
(52 666
(52034)
034) (1
(13583)
729 79 976 7(930)
531
Net
Nettrade
Net
Net
Net
trade
trade
trade
trade
receivables
receivables
receivables
receivables
receivables 310 159)
902 219 034)
666 3583)
(1 583)
729 (1
(1
(1612)
79 612)
612)
976 7(930)
(930)
531
310
310
310 902
902
902
310902
902 219
219
219 666
219666
666
666 3 729
333729
729
729
729 79
79
79 976
79976
976
976 7 531
777531
531
531
531
Net trade receivables 310 219 666 3 79 976 7
Nettrade
Net
Net tradereceivables
trade receivables
receivables 310902
310
310 902
902 219666
219
219 666
666 333729
729
729 7979976
79 976
976 777531531
531
310 902 219 666 3 729 79 976 7 531
2019
2019
2019
2019 2019
2019
2019
2019 30
2019
2019 Total > 90 Days 60 Days 30 Current
Total > 90 Days 60 Days Days
30 Current
2019
2019
2019 Total >>90 Days 30
Total
Total 90DaysDays 60 Days
60Days
Days 30Days 30
Days Current
Current
Trade Receivables 417Total 512 >> 293
90
90 Days
Days
559
60
6025Days
142 873030
070 Days
Days
Days
Current
Current
Current
11 741
Trade Receivables 417Total 512 293 559 25 142 87 070 30
30
Days 30 11 741
Total
Total >>>90
90
90Days
Days
Days 60
60
60 Days
Days
Days Current
Current
Current
Trade
Trade
Trade
Trade Receivables
Receivables
Receivables
Receivables 417
417
417
417 512
512
512
512 293
293
293
293 559
559
559
559 25
25
25
25 142
142
142
142 8787 070
87
87
070Days
Days
Days
87 070
070
070 11
1111
11 741
741
741
741
Less: Impairment
Trade Receivables (44
417845) 512 (39
293689) 559 (1
25785)
142 (2 156)
87 070 (1
11215)
741
Less: Impairment (44 845) (39 689) (1 785) (2 156) (1 215)
Trade
Trade
Trade
Less: Receivables
Receivables
Receivables
Impairment 417
417
(44 512
512
417845)512 293689)
293
293
(39 559
559
559 25
25
(1 142
142
25785)
142
785) 8787156)
87
(2 070
070
070 11
11
(1 11 741
741
741
Less:
Less:
Less: Impairment
Impairment
Impairment (44
(44(44 845)
845)
845) (39689)
(39
(39 689)
689) (1
(1(1 785)
785) (2
(2(2156)
156)
156) (1(1215)
(1 215)
215)
215)
Net
Less:trade receivables
Impairment 372
(44 667
845) 253
(39 870
689) 23
(1 357
785) (2(2156)
84156)
914 (1
10
(1 215)
526
215)
Net trade receivables 372 667 253 870 23 357 84 914 10 526
Less:
Less:
Less:
Net Impairment
Impairment
Impairment
trade receivables (44
(44
372(44845)
845)
845)
667 (39
(39
(39689)
253 689)
689)
870 (1
(1
23(1785)
785)
785)
357 (2
(2(2156)
84156)
156) 914 (1
(1
(1215)
10 215)
215)
526
Nettrade
Net
Net trade
trade receivables
receivables
receivables 372
372
372 667
667
667 253
253
253 870
870
870 23
23
23 357
357
357 8484914
84 914
914 10
10 526
526
10526
526
Net trade receivables 372 667 253 870 23 357 84 914 10
Nettrade
Net
Net tradereceivables
trade receivables
receivables 372372667
372 667
667 253870
253
253 870
870 2323357
23 357
357 8484914
84 914
914 10
1010526
526
526
The collectability of trade receivables is assessed at reporting date and specific allowances are made for any
The collectability of trade receivables is assessed at reporting date and specific allowances are made for any
Thecollectability
The collectability
doubtful
The
Thecollectability
The
The
of
collectability
collectability
collectability
ofof
receivables
collectability of
of
trade
trade
based
trade
trade
trade
receivables
tradereceivables
on a reviewisis
receivables
receivables
receivables
receivables is
isis
isis
of assessed
assessed
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Projects SENTECH INTEGRATED REPORT 2019/20
115
Projects
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Projects SENTECH INTEGRATED REPORT 2019/20
Projects SENTECH INTEGRATED REPORT 2019/20 116
SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
GROUP & COMPANY
2019/20 116
GROUP & COMPANY
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Figures
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GROUP & COMPANY
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post
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benefit
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benefit
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employees
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result
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combination
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gain in
R18.358
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044004220the
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netnet
unexpected
actuarial
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gain
gain
gain
gain
ofR18.358
of R18.358
ofof
R18.358
million
R18.358
million
million
arose
million
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arose
as aas
aasresult
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result aof aaof
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of a combination
combination of
of the
of the of
following
following factors:
the following
Item
Item
factors: The
Item unexpected actuarial gain of R18.358 million Unexpected
Unexpected
arose a result
Unexpected ofcombination
gain/(loss)
gain/(loss) R’million
R’million
a combination
thethe
of following
following
factors:
factors:
factors:
Item factors: Unexpected gain/(loss) R’million
Change
Item
Change in
in Plan
Plan Assets
Assets 0.504
Unexpected gain/(loss)
0.504 R’million
Change in Plan Assets 0.504
Change
Change in Real Discount
Plan Discount
in Real Assets RateRate 13.172
0.504
13.172
Change in Real Discount Rate 13.172
Higher
Change
Higher than
in
than Expected
Real Discount
Expected Healthcare
Rate
Healthcare Cost
Cost Inflation
Inflation (0.377)
13.172
(0.377)
Higherinthan
Change Plan Expected
Assets Healthcare Cost Inflation (0.377)
0.504
including
including
Higher Changes
thanChanges in
in Members’
Expected Members’ Benefit
HealthcareBenefit
Cost Options
Options
Inflation (0.377)
including Changes in Members’ Benefit Options 118
117Change
118 in Real Discount Rate
including Changes in Members’ SENTECHBenefit INTEGRATED
Options REPORT 13.172
2019/20
Unexpected Changes in MembershipSENTECH
SENTECH INTEGRATED
INTEGRATEDREPORT
REPORT 2019/20
5.059 2019/20
Unexpected
Higher than Changes
Expected in Membership
Healthcare
Unexpected Changes in Membership Cost Inflation
SENTECH INTEGRATED REPORT 2019/20 5.059
(0.377)
5.059
March 32 494 38 248 (21 060) (12 264)
The post retirement benefit applies only to

totoemployees who joined SENTECH prior to 111July 2005 and did not
TheTheThepost
post postretirement
retirement
retirementbenefit
benefit applies
applies
benefit only
applies only employees
to employees
only employeeswhowho joined
joined
who SENTECH
SENTECH
joined SENTECH prior
prior to 1toto
prior July
July 2005
July 2005
andand
2005 diddid
and didnot
not not
The post
accept retirement benefit
the voluntary buyoutapplies
offer only
in to employees who joined SENTECH prior to 1 July 2005 and did not
accept
accept thethe
accept thevoluntary
voluntary buyout
buyout
voluntary offer
offer
buyout inin2013.
in 2013.
offer 2013.
2013.
accept the voluntary buyout offer in 2013.
NotesNotes
Notes to
toThe to
thethe the Financial
Statements
netFinancial Statements
The net
net unexpected
unexpected actuarial
actuarial gain
gain of
ofofR18.358
R18.358 million
million arose
arose as aa result of aa combination of
ofofthe following
The net
The unexpected actuarial
unexpected gain
actuarial of R18.358
gain million
R18.358 arose
million as aasas
arose aresult
result of aofof
result acombination
combination
combination of the the
thefollowing
following
following
For The
the net unexpected
year ended actuarial
31
factors: March gain of R18.358 million arose as a result of a combination of the following
2020
factors:
factors:
factors:
factors:
Item
Item Unexpected gain/(loss)
Unexpected gain/(loss) R’million
R’million
Item Item Unexpected
Unexpected gain/(loss) R’million
Item Unexpected gain/(loss) R’million
Change
Change in
ininPlan
Plan Assets
Assets 0.504
0.504
Change in Plan
Change Assets
Plan Assets 0.504
0.504
Change
Change in Plan
in Assets
Real Discount Rate 0.504
13.172
Change
Change
Change ininReal
in Real Discount
Discount
Real Rate
Rate
Discount Rate 13.172
13.172
13.172
Change in
Higher thanReal Discount
than Expected Rate
Expected Healthcare
Healthcare Cost Inflation 13.172
(0.377)
Higher
Higher thanthan
Higher Expected Healthcare
Expected Cost
Cost
Healthcare Inflation
Inflation
Cost Inflation (0.377)
(0.377)
(0.377)
Higher thanChanges
including
including Expectedin
Changes in Healthcare
Members’
Members’ Cost Inflation
Benefit
Benefit Options
Options (0.377)
including Changes
including in Members’
Changes Benefit
in Members’ Options
Benefit Options
including Changes in Members’ Benefit Options
Unexpected
Unexpected Changes
Changes in
ininMembership
Membership 5.059
5.059
Unexpected
Unexpected Changes in Membership
Changes Membership 5.0595.059
Unexpected
Total Changes in Membership 5.059
18.358
Total
TotalTotal 18.358
18.358
18.358
Total 18.358
• Higher than expected returns on plan assets from 31 December 2018 to 31 March 2019 resulted in
• Higher than expected returns on plan assets from 31 December 2018 to 31 March 2019 resulted in
•• Higher than expected
an unexpected gain of approximately R504,000. returns on plan assets from 31 December 2018 to 31 March 2019 resulted in an
•Higher
• • Higher Higherthanthan thanexpected
expected expected
an unexpected gain of approximately R504,000.
Higher than returns
returns
expected on on
returns
returns onplan
plan on assets
assets
plan plan from
from
assets from31 31
assets December
31from
December 312018
December 2018to to
December
2018 to31
31 March
2018
March
31 March to
20192019 resulted
31resulted
2019 March
resulted in
in2019
aninanan
resulted in
• unexpected
Higher thangain expected
of returns on plan assets from 31 December 2018 to 31 March 2019 resulted in an
unexpected
unexpected an
unexpected gain gain
unexpected ofofapproximately
approximately
gain
of approximately
gain of
approximately
R504,000.
R504,000.
approximately
R504,000.
R504,000. R504,000.
• An unexpected gain of R13.172 million arose as a result of an increase in the real discount rate, i.e.
unexpected gain of approximately R504,000.
• An unexpected gain of R13.172 million arose as a result of an increase in the real discount rate, i.e.
an increase in the difference between the discount rate and the healthcare cost inflation assumption,
•• An Anunexpected gain of R13.172 million arose as aa result
asofaof an increase in the real indiscount rate, i.e. an
• •
An unexpected
unexpected
unexpected
An unexpected gain ofgain
gain
gainof of R13.172
ofR13.172
R13.172
R13.172 million
million million
arose
arose
million arose aarose
an increase in the difference between the discount rate and the healthcare cost inflation assumption,
•An as as aresult
asresult result result
of
anofan of aninincrease
anincrease
increase
increase ininthe
the realreal
the the
discount
discount
real real
discount discount
rate,
rate, i.e.i.e.
rate, rate, i.e. an
i.e.anan
an
• An unexpected gain of R13.172 million arose as a result
from 1.65% per annum to 3.74% per annum. This change was necessitated by an increase in real bond
increase in the difference between the discount rate and theof an increase
healthcare cost in the real
inflation discount
assumption, rate,
from i.e. an
1.65%
increase in the difference thebetween theratediscount
from 1.65% per annum to 3.74% per annum. This change was necessitated by an increase in real bond
increase ininthe difference between the the rate andcostthe healthcare costfrominflation assumption,
increase
yields. per
in the
increase
increase annumin the to
difference
the
difference
3.74% per
between
difference between
between
annum.
discount
the discount
the change
This discountwas
rate
rate
and the healthcare
and healthcare
and the healthcare
necessitated by an
inflation
cost
cost inflation
increase in real
assumption,
inflation assumption,
assumption,
bond yields.
1.65%
from
from 1.65%
1.65%
yields. per
per annum from
annum
per annum 1.65%
to
to 3.74% 3.74%
to 3.74%perperannum
annum.
per annum.
per annum. to
This
ThisThis 3.74%
change
changechange per
was
waswas annum.
necessitated
necessitated
necessitated This
by
by an change
an increase
byincrease was in
in real
an increase necessitated
real bond
bondbond
in real yields.
yields.
yields. by an increase in real
per annum to 3.74% per annum. This change was necessitated by an increase in real bond yields.
bond yields.
• An actual weighted average contribution increase of 10.14% was higher than the expected increase
• An actual weighted average contribution increase of 10.14% was higher than the expected increase
of 9.10%. This resulted in an unexpected loss of R0.377 million.
• • AnAn actual weighted average
of 9.10%. This resulted in an unexpected loss of R0.377 million. contribution increase ofhigher
10.14% was higher than the expected increase
••An actual weighted
actual weighted average
average contribution
contribution increase
increase of of 10.14%
10.14% was was higher than the
than the expected
expected increase
increase of of 9.10%.
9.10%.
• An actual
An
of weighted
actual
9.10%. weighted
This average
average
resulted contribution
contribution
in an increase of
increase
unexpected 10.14%
of 10.14%
loss ofwaswas higher
was
R0.377 than
higher the
than expected
the expectedincrease of
increase 9.10%.
of 9.10%.
• ThisAn actual
resultedweighted
in average contribution increase of 10.14%
129 highermillion.
than the expected increase of 9.10%.
This resulted
This in an
resulted ininan unexpected
unexpected
unexpected
loss of
ofofR0.377
of R0.377
loss
million.
million.
million.
R0.377 million. 129
• An unexpected gain of R5.060 million arose as a result of differences between actual and expected
This resulted an
anunexpected lossloss R0.377 129 129
This resulted in an unexpected loss of R0.377 million. 129
membership changes. R2.641 mill of this is in respect of pensioners who are actually covered under
membership changes. R2.641 mill of this is in respect of pensioners who are actually covered under
•••An
An unexpected
unexpected gain
membership
gain ofof R5.060
gainchanges.
R5.060 million
R2.641
million arose
mill
arose as
of this
the annuity policy but were not reflected as such in the previous data provided.
• An unexpected
An unexpected of R5.060
gain of R5.060 million arose
million arose
as aa result
result of
as aasisresult
in respect
of differences
differences between
of of
of differences
a result pensioners
differences
between actual
between who
between
actual and
actual areand
actual
and expected
actually
expected
expected
and covered under
expected
the annuity policy but were not reflected as such in the previous data provided.
• membership
An unexpected gain of
changes. R5.060
R2.641 millmillion
of this arose
is in as a result
respect of of differences
pensioners who between
are actual
actually and expected
covered under the
membership
membership the annuity changes.
changes. policyR2.641
R2.641 mill
butmill mill
of
were of
thisthis
not is is
in in respect
respect
thisreflected of of pensioners
pensioners whowho are are actually
actually covered underthe
actually covered
covered under
under the
is in respectasofsuch in the who previous
who are data
are actually provided.
membership changes. R2.641 mill of is in respect of pensioners the
membership
annuity policy changes.
but were R2.641
not reflected as of this pensioners covered under the
annuity
annuity policy
policy
annuity butbut
policy were
were
but notnot
were reflected
reflected
not asassuch
as such
reflected such in
ininthe
in the
such the previous data
theprevious
previous data
data
previous
provided.
provided.
provided.
data provided.
annuity
Principal
Principal
Principal policy but
actuarial
actuarial
actuarial were not reflected
assumptions
assumptions
assumptions used as such in the previous data provided.
used
used
Principal actuarial
Principal actuarial assumptions
assumptions used
used
Principal
Discount
Principal actuarial
rate
actuarial assumptions used 13,6% 10,9%
Principal
Discount rate actuarialassumptions
assumptionsused
used 13,6% 10,9%
Principal actuarial assumptions used
Annual
Annual increase
increase in health care costs 9,5% 9,1%
Discount
Discount rate in health care costs 9,5%
13,6% 9,1%
10,9%
Discountrate
rate 13,6%
13,6% 10,9%
10,9%
Discount
Expectedrate
retirement age 13,6% 10,9%
Expected
Annualretirement
Annual increase inin age
health care
care costs 63 63 years
years
9,5% 63 63 years
years
9,1%
Annualincrease
increase inhealth
health carecosts
costs 9,5%
9,5% 9,1%
9,1%
Annual increase in health care costs 9,5% 9,1%
Expected
Expected retirement
Expectedretirement
age
retirementageage 0044 174 110 :enohp6363
e63
63leyears
T
years
years
63
63 ecfifO daeH
years
63years
years
Expected retirement age years 63 years
0402 ,pokoidaR
0402 ,wedyenoH
Sensitivity
Sensitivity analysis
analysis
2020
2020
20202020
2020
Change in
Change in liability
liability Base
Base -1% (1
(1 year
year younger)
younger) 1% (1
(1(1year older)
Change in liability
Change in liability BaseBase -1%-1%
(1 year
-1% younger)
(1 year younger) 1%1%
(1
1%year year older)
older)
year older)
Change in liability Base -1% (1 year younger) 1% (1 year older)
CPI & 9,10% &
&&13,6% 15 688 36 686
CPICPI
& &&Medical
Medical
CPIMedical
Health
Health
Health
Medical
Inflation
Inflation
Inflation
Health Inflation
9,10%
9,10%
9,10% 13,6%
& 13,6%
13,6% 15 15
15688
688 688 36 3636686
686 686
CPI & Medical Health Inflation 9,10% & 13,6% 15 688 36 686
Discount rate 13,60%
13,60% 30 155 21 492
Discount
Discount rate
Discount rate
rate 13,60%
13,60% 30 30
30155
155 155 21 492
21 492
13,60% 30 155 21 492 Discount rate
63 years 26 660 24 100 Expected retir
63 63
63years
years
years 26 26
26660
660 660 24 2424100
100 100 118 retir
119119 SENTECH
SENTECH
SENTECH INTEGRATED
INTEGRATED
INTEGRATED
SENTECH 63 years
INTEGRATED REPORT
REPORT
REPORT 2019/20
2019/20
2019/20 26 660
2019/20
REPORT 24 100 Expected retirem
Expected ret
Expected retirem
SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
2019/20
Notes
Notes
Notes
Notes to
to
to the
to the
the
the Financial
Financial
Financial
Statements
Statements
Statements
Notes
For the
ForFor
to
thethe
the
year
year
year
Financial
ended 31
ended
ended 31 31
Statements
March 2020
March
March 2020
2020
For the year
ForSensitivity
the year
Sensitivity ended
ended 3131
analysis March
March 2020
2020
Sensitivity
Sensitivity
analysis
analysis
analysis
Sensitivity
Sensitivity
analysis
Sensitivityanalysis
analysis
Sensitivity
2020
2020
2020
2020
2020
analysis
2020
20202020
2020
2020
Change
Change in
ininliability
liability Base
Base -1% (1
(1 year
year younger)
younger) 1% (1
(1(1year older)
Change in liability
Change liability BaseBase -1%-1%
(1 year
-1% younger)
(1 year younger) 1%1%
(1
1%year year
yearolder)
older)
older)
9,10%
9,10% &
&&13,6%
13,6% 15 688 36 686
CPICPI
& &&Medical
CPIMedical
Medical Health
Health Inflation
Inflation
Health Inflation 9,10% & 13,6%
9,10% 13,6% 15 15
15688
688 688 36 3636686
686 686
Discount rate 13,60% 30 155 21 492
Discount
Discount rate
Discount rate
rate 13,60%
13,60% 30 155
30 155 21 2121492
492 492
Discount rate 13,60% 30 155 21 492
63 years 26 660 24 100
Expected
Expected retirement
retirement
Expected ageage
retirement age 63 63
63years
years
years 26 26
26660
660 660 24 2424100
100 100
Expected retirement age 63 years 26 660 24 100
change
Change in
in current
current service
service and 9,10%
9,10% &
&&13,6%
13,6% 2
22629
629 5
55823
823
change in current service andand 9,10% & 13,6%
9,10% 13,6% 2 629 629 5 823 823
interest
interest cost
cost 9,10% & 13,6% 2 629 5 823
interest cost
interest
2019 cost
2019
2019
2019 2019
2019
2019
2019
2019 2019
Change ininliability Base (1
(1(1year younger)
Change in liability
Change liability BaseBase -1%-1%
(1 year
-1% year
yearyounger)
younger)
younger) 1%1%
(1 (1(1year
1%year older)
older)
year older)
7,10% && 9,10%
9,10%
CPICPI
& &&Medical
CPIMedical
Medical Health
Health Inflation
Inflation
Health Inflation 7,10%
7,10% & 9,10%
7,10% & 9,10% 31 31
31784
784 784 46 4646497
497 497
Discount rate 10,90% 46 682 31 746
31 746
Discount raterate
Discount 10,90%
10,90% 46 682
46 682 31 746
31 746
Discount rate 10,90% 46 682 31 746
Expected retirement 63 years 36 669
Expected retirement
Expected ageage
retirement age 63 63
63years
years
years 39
39947
39 947 947 36 3636669
669 669
Expected retirement age 63 years 39 947 36 669
Change
change
change in current
in
in current service
current service and
service and
and
change in current service
rrent and and
service 4 063
063 6 199
199
interest
interest
interest rrent
cost
cost
cost service and 6%6%
& &&9%
6%9% 9% 4
4 0634 063 6
6 1996 199
Historical
interest
Historical cost
interest information
cost
information
Historical information 6% & 9% 4 063 6 199
interest
Historicalcost
information
Historical
Historical information
information
Historical
information
Figures
Figures in
ininRand
Rand thousand
thousand 2020
2020 2019
2019 2018
2018 2017
2017
Figures in Rand
Figures thousand
Rand thousand 2020
2020 2019
2019 2018
2018 2017
2017
Figures in Rand thousand 2020 2019 2018 2017
Retirement
Retirement medical
medical aid benefits
Retirement
Retirementmedical
medicalaidaid
aidbenefits
benefits
benefits
Retirement medical aid benefits
Present value of the obligation 11 434
Present
Present value
value
Present of
of the
value the obligation
of obligation
the obligation 11 11
11434
434 434 25 25
25984
984 984 19 19
19588
588 588 14 14
14060
060 060
Present value of the obligation 11 434 130 25 984 19 588 14 060
Defined
Defined
Defined
Benefit
Benefit
Benefit
Liability
Liability
Liability
11
11 11 130
434
11434
434
25
434 130 25 25
984
25984
984
19
19 19
588
19588
588
14
14 14
060
14060
060
11 434 130
Defined Benefit Liability 984 588 060
Defined Benefit Liability 25 984 19 588 14 060
Analysis
Analysis of
ofofunexpected
unexpected gains
gains and
and losses
losses
Analysis
Analysis
Analysis of of unexpected
unexpected
unexpected gains
gains
gains and and
and losses
losses
losses
The Analysis
Analysis
accrued ofof unexpected
unexpected
liability gains
gains
calculated and and
losses
in losses
inthis
Analysis
The of unexpected
Analysis
accrued of unexpected
liability gains and and
gains
calculated losses
inlosses
this valuation
valuation is
isisR32
R32 million,
million, reflecting
reflecting an
an unexpected
unexpected gain
gain of
of R14
R14
The
The accrued
Analysis
accrued liability
of unexpected
liability calculated
gains and in
calculated losses
thisthis valuation
valuation is R32 R32 million,
million, reflecting
reflecting anan unexpected
unexpected gaingain
of of
R14R14
The
million.
Head
million. accrued
Office liability calculated in this valuation is R32 million,
Telephone: reflecting
011 471an unexpected
4400 gain of R14
million.
million.
The accrued liability calculated in
Themillion.
The
The accrued
accrued
accrued liability
liability calculated
calculated
liability ininthis
in this
calculated this valuation
valuation
valuation
this
is
isisR32
is R32
valuation R32 million,
million,
million,
R32
reflecting
reflecting
million, an an
reflecting
reflecting anunexpected
unexpected gain
gain
unexpected ofofR14
of R14
gain million.
million.
R14 million.
Sender
The 13. DEFERRED
accrued
13. DEFERRED
13. Technology
liability
DEFERRED TAXTAX
calculated
TAX in Park (STP)
this valuation Call Center:
is R32 million, reflecting 0860
an unexpected gain736
of R14832
million.
13. DEFERRED
13. DEFERRED
13. DEFERRED TAX
TAX TAX
13.13. DEFERRED
Octave
DEFERRED
13. DEFERRED TAX TAX
Street TAX International: +27 11 471 4595
GROUP GROUP & COMPANY
&&COMPANY Happy with Happy with this
Radiokop, 2040 GROUP
GROUP& COMPANY
COMPANY Happy with
Happy thisthis
with this
GROUP & COMPANY Happy with this
Figures
Figures
FiguresininRand
in Rand thousand
thousand
Rand thousand 2020
20202020 2019
20192019
Figures in Rand thousand E-mail: support@sentech.co.za
2020 2019
Deferred tax Asset/(Liability) 37 504 (70
Deferred
Postal tax Asset/(Liability) 37 37
504504 (70 (70785)
785)
DeferredAddress www.sentech.co.za
Deferred tax Asset/(Liability) 37 504 785)
tax Asset/(Liability) 37 504 (70 785)
Private Bag
Movement
Movement 0202 TROPER LAUNNA DETARGETN I
X06
inintemporary
in temporary
Movement differences
differences
temporary differences
Movement in temporary differences
Honeydew, 2040
At At
Atbeginning
beginning ofofyear
of year
beginning year (70(70
(70 785)
785)
(70785)
785) (53(53
(53073)
073) 073)
At beginning of year (70 785) (53 073)
Recognised
Recognised in
ininprofit
profit and loss 113 429 7 814
Recognised in profit
Recognised andand
profit lossloss
and loss 113
113
113 429
429
429 7 7814
7814814
814
Recognised in profit and loss 113
113 429
429 77814
Recognised
Recognised in
ininother
other comprehensive
comprehensive income
income (5 140) (31 218)
Recognised in other
Recognised comprehensive
other income
comprehensive income (5140)
(5
(5(5140)140) (31218)
(31(31
218)218)
Recognised in other comprehensive income 140) (31 218)
Correction ofofprior period error -- 5

55692
692
Correction of prior
Correction period
prior error
period error -- - 5 692 692
Correction of prior period error 5 692
37 37
37 504
37504
504 504 (70(70
(70785)
785)785)
37 504 (70 785)
120
Deferred
SENTECH
SENTECH
SENTECH
SENTECH
SENTECH
INTEGRATED
INTEGRATED REPORT
REPORT
INTEGRATED
INTEGRATED
INTEGRATED
2019/20
2019/20
REPORT
REPORT 2019/20
REPORT 2019/20
2019/20 120120
Deferred taxtax
Deferred taxliabilities
liabilities areare
liabilities areattributed
attributed to to
attributed tothe
the following:
following:
the following:
Deferred tax liabilities are attributed to the following:
Recognised in profit and loss
113 429 7 814
Recognised
Recognised
Recognised in other
ininother
other comprehensive
comprehensive
comprehensive income
income
income (5 140) (31 218)
(31218)
(31 218)
(5140)
(5 140)
Recognised in other comprehensive income (5 140) (31 218)
Correction
Correction
Correction of period
ofprior
of prior prior
periodperiod
errorerror
error - 6925 692
55692
--
NotesNotes of
Correction
to the toprior
theperiod
Financial
error
Financial Statements Statements -37 504 5 692
Notes tothe
For the Financial
year ended 31Statements
March 2020
37504
37 504 (70 785)
(70785)
(70 785)
For year
For the the year
ended ended 31 March
31 March 20202020 37 504 (70 785)
Deferred
Deferred tax tax
taxliabilities
liabilities
Deferred
Deferred are
tax liabilities
liabilities attributed
are attributed
are are totothe
to the
attributed
attributed the following:
following:
to the following:
following:
Deferredtax
Deferred taxliabilities
liabilitiesare
areattributed
attributedto
tothe
thefollowing:
following:
Deferred tax liabilities are attributed to the following:PPE PPE Prepayments
Prepayments TotalTotal
PPE Prepayments Total
Balance
Balance 31at
at31 31 March
March 20182018 PPE (101 (101
820) 820) Prepayments (11 117)
(11117)
117) Total (112 (112
937) 937)
Balance at March 2018 (101 820) (11 (112 937)
Balance at 31inMarch
Recognised
Recognised profit 2018
in profit and loss
andloss
loss (101(1820)
(1 987)
987) (11 117)
159 159 (112(1937)
(1 828)
828)
Recognised in profit and (1 987) 159 (1 828)
Recognised
Recognised
Recognised
Recognised in in and
ininprofit
other
other other comprehensive
loss
comprehensive
comprehensive (1 987) 159 (1 828)
(31 (31 218)
(31218)
218) -- - (31 218)
(31218)
(31 218)
income
income
income
Recognised in other comprehensive
(31 218) - (31 218)
income Correction of period
prior period
errorerror 20 480
Correction
Correction ofprior
of prior perioderror 20480
20 480 1608 160
88160 28666
28 28 666
666
Correction
Balance atof
Balance31prior
at 31period
March March
2019error
2019 20 480
(114 (114
545) 545) (2 772)
8 772)
(2 160
772) (117 (117
317) 317)
28 317)
666
Balance at 31 March 2019 (114 545) (2 (117
Balance at 31 March 2019 (114 545) (2 772) (117 317)
Recognised in profit and loss (332
302) 302)
(332302)
(332 55 55
55 (332
247) 247)
(332247)
(332
Recognised
Recognised ininprofit
profit andloss
and loss
Recognised in and loss
other comprehensive (332 302)
1405 140 55 - - (332 247)
1405 140
Recognised
Recognised ininother
other comprehensive
comprehensive 55140 - 55140
income
income in other comprehensive
income
Recognised 5 140 - 5 140
income
Balance (441
707) 707) (2 717) (444
424) 424)
Balance
Balance 31at
at31
at 31 March
March
March 20202020
2020 (441707)
(441 (2717)
(2 717) (444424)
(444
Balance at 31 March 2020 (441 707) (2 717) (444 424)
Deferredtax
Deferred
Deferred taxassets
tax assetsare
assets areattributed
are attributedtoto
attributed tothe
thethefollowing:
following:
following:
Deferred
Deferredtax
taxassets
assets areattributed
are attributedtoto
thethe following:
following:
Unearned
Unearned income
income
Provisions
Provisions Leases
Leases TotalTotal
and Deposits
and Deposits
Balance -
Balance at 31at 31 March
March 20182018 53 730
53 730 6 1336 133 - 59 863
59 863
Recognised
in profit and loss
and loss 8 5648 564 685 685 - 9 2499 249
-
Recognised
Recognised in other
in other comprehensive
comprehensive - -
income 393 393 - - 393 393
income
Correction
Correction of prior
of prior period
period errorerror (18 353) 132
(18 353) (4 620)
(4 620) (22 973)
(22 973)
132
132
132 e46
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f46
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20192019 0044 174 1144 0334
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peleT 2 1932011
Balance at 31 March 193 471 4400- -
Head
Head Head
Balance
OfficeOffice
at 31
Office March Telephone:
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441 838 440 537
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Postal
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14. CURRENT
14. CURRENT TAX RECEIVABLE
TAX RECEIVABLE / PAYABLES
/ PAYABLES
GROUP
GROUP & COMPANY
& COMPANY
Figures in Rand thousand 20202020 20192019 Figures in Rand th
120
121 SENTECH
SENTECH
SENTECH
SENTECH INTEGRATED
INTEGRATED
INTEGRATED REPORT
INTEGRATED REPORT
REPORT
REPORT 2019/20
2019/20
2019/20
2019/20 121
South African Revenue Services 953 16 220
Leases - - - -
Balance
Balance
Balance 31at
at31
at 31 March
March
March 20202020
2020
33743
33 33 743
743 3496 349
66349 441 838
441838
441 838 481 928
481928
481 928
Balance at 31 March 2020
33 743 6 349 441 838 481 928
Notes to the Financial Statements Not

NotesFortothe
theyear
Financial
ended 31Statements
March 2020
Notes
For the to
yearthe Financial
ended Statements
31 March 2020 For t
For the year 14. CURRENT
ended
14.CURRENT
14. CURRENT 31
TAX
TAX TAX RECEIVABLE
March
RECEIVABLE
RECEIVABLE / PAYABLES
2020//PAYABLES
PAYABLES
14. CURRENT
14. TAX RECEIVABLE
CURRENT TAX / PAYABLES
RECEIVABLE / PAYABLES 16. D
14. CURRENT TAX RECEIVABLE / PAYABLES
14. CURRENT TAX RECEIVABLE / PAYABLES GROUP & COMPANY
GROUP
GROUP &&COMPANY
COMPANY
Figures in Rand thousand GROUP & COMPANY
Figures
Figures ininRand
Rand thousand
thousand 20202020
2020 20192019
2019
SouthSouth
South African
African
African Revenue
Revenue
Revenue Services
Services
Services 953 953
953 16220
16 16 220
220
South South
AfricanAfrican
Revenue Services
Revenue Services payable 953(4 518) 16 220 -
SouthAfrican
South AfricanRevenue
Revenue Services
Services payable
payable (4518)
(4 518) --
South Total
African Revenue/ receivable
(payable) Services payable (4 518)(3 565) -16 220
Total(payable)
Total (payable)//receivable
receivable (3565)
(3 565) 16220
16 220
Total (payable) / receivable (3 565) 16 220
15. 15. TRADE
15.AND
TRADE
TRADE AND
ANDOTHER
AND OTHEROTHER PAYABLES
PAYABLES
PAYABLES
15. TRADE OTHER PAYABLES
15.AND
15. TRADE TRADE AND OTHER
OTHER PAYABLES
PAYABLES
15. TRADE AND OTHER PAYABLES GROUP & COMPANY
GROUP
GROUP &&COMPANY
COMPANY
Figures
Figures
Figures in Rand
ininRand
Rand GROUP & COMPANY
thousand 20202020
2020 20192019
2019
thousand
thousand
Figures in Rand
2020 2019
Trade Trade
thousand
Tradepayables
payablespayables 32796
32 32 796
796 34499
34 34 499
499
Trade payables
Accrued
Accrued expenses*
expenses* 32
5779657 739
739 34
4849948 526
526
Accrued expenses* 57 739 48 526
Accrued expenses*
Financial liabilities 57 73990 535 48 52683 025
Financial
Financial liabilities
liabilities 90535
90 535 83025
83 025
Financial
Customer liabilities
Customer deposits
deposits 902535
0302 030 832025
5172 517
Customer deposits 2 030 2 517
Customer deposits
LeaseLease accrual
accrual 2 030 - - 2 517
20 20 894
894
Lease accrual - 20 894
Lease accrual
Unearned Income 133 133 - 4 654
133 205894
Unearned
Unearned Income
Income 44654
654 3315 331
5 331
133
Unearned
VAT VAT Income 47654
5627 562 57331
9827 982
VAT 7 562 7 982
VAT
LeaveLeave pay accrual
payaccrual
accrual 7 562
32 32 145
145 7 982
30 30 486
486
Leave pay 32 145 30 486
Leave pay accrual 32 145 30 486
136 136 927
136927
927 150 235
150235
150 235
136 927 150 235
*-*-Accrued *- Accrued expenses comprise of local and foreign creditors year end accruals, payroll accruals, accrual for
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202 TROPEANNUAL
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SENTECH
SENTECH
SENTECH
SENTECH INTEGRATED
INTEGRATED
INTEGRATED REPORT
INTEGRATED REPORT
REPORT
REPORT 2019/20
2019/20
2019/20
2019/20 122 123
122
tes to Notes to the Financial
Statements Not
Notes
the year ended 31 March 2020 ForFor
thet
16.
16. DEFERRED
DEFERRED
16. DEFERRED INCOME
INCOME
INCOME
DEFERRED
16. INCOME
DEFERRED INCOME 17. 17.
PROP
GROUP & COMPANY
Figures
Figures
Figures in
in Rand
in Rand Rand thousand
thousand
thousand 20202020
2020 20192019
2019
Analysis
Analysis
Analysis of
of movements in in
of movements
movements in
deferred
deferred
deferred income
income
income
Opening
Opening
Opening balance
balance
balance 130 130
368 368
130 368 94 286
94 286
94 286
Net Net
Net funding
funding
funding received
(see(see
received
received (see
below) 218 218
203 203
218 203 177 304
below)
below) 177 177
304 304
Acquisition
Acquisition
Acquisition of
of property,
property,
of property,
- --
plant
plant and
and equipment
equipment
plant and equipment (20
(20 365)
(20 365)365)
Net Net
Net interest
interest
interest capitalised
capitalised
capitalised 11
11 618
11 618 618 9 705
9 705
9 705
Interest
Interest
Interest received
fromfrom
received
received from 16
16 136
16 136 136 13 008 TheTheAcc
government
government
government grant
grantgrant funds
fundsfunds 13 008
13 008 is asisabo
as
(4 518)
(4 518)
Taxation
paidpaid
Taxation
Taxation paid on
on interest
interest
on interest (4 518) (3 303)
(3 303)
(3 303)
Utilisation
Utilisation
Utilisation (146(146
000)000)
(146 000) (130 563)
(130(130
563)563)
DualDual
Dual illumination
illumination
illumination
cost/revenue (146(146
000)000)
(146 000) (130 563)
cost/revenue
cost/revenue (130(130
563)563)
Closing
Closing
Closing balance
balance
balance 214 214
189 189
214 189 130 130
368 368
130 368 18. 18.
REVR
Net
Net funding
funding received
received
Net funding received
Government
Government
Government grants
grants
grants
received
received 250 250
934 934
250 934 203 203
900 900
203 900
received
Deemed
Deemed
Deemed VATVAT
VAT
(15%)(15%)
(15%) (32
(32 731)
(32 731)731) (26
(26 596)
(26 596)596)
218 218
203 203
218 203 177 177
304 304
177 304
Government
Government
Government grants
grants are are
grants are received
for for
received
received the the
for the purchase
and and
purchase
purchase and construction
construction
construction of
of property,
plantplant
property,
of property, and and
plant and
vernmentequipment
grants are received for the for purchase and operational
construction of property, plant and equipment and
equipment
equipment
Government and and
and to
to compensate
togrants compensate
compensate for the
for the
are received the Group’s
Group’s
Group’s
for the operational
operational
purchase expenditure
expenditure
expenditure
and construction related
related
related to
to Government
Government
oftoproperty,
Government plant and equipment and to
ompensate for
projects. the Group’s operational expenditure related to Government projects. The deferred in-
The The
projects.
compensate
projects. The deferred
deferred
for
deferred income
income
theincome
Group’s relating
relating
operational
relating to
to completed
completed
expenditure
to completed assets
assets
assets has
has been
related
has been been
to netted-off
netted-off
Government
netted-off against
against the the
against the cost
projects.
cost of of
cost
The of
deferred income relating
me relatingthe to completed
respective assetsassets
under has been
property, netted-off
plant and against
equipment. theofcost
Deferred of the
income respective
relating to assetsproperty,
capital under plant and
tothe respective
completed assets
assets under
has
the respective assets under property,
ad Office 0 0 property,
4
been 4 1 7 4 plant
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Deferred the income relating
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assets
income relating to capital capital
under ecfifO daeH
perty, plant and equipment.
work-in-progress
equipment.
work-in-progress is
is set-off
Deferred
work-in-progressis set-off
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0202 TINTEGRATED
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17. PROVISIONS
PROVISIONS
17. PROVISIONS
Figures
Figures
Figures in
in Rand
in RandRand thousand
thousand
thousand 20202020
2020 20192019
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Reconciliation
Reconciliation of
of provisions
provisions
Reconciliation of provisions
Opening
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balance 46
46 228
46 228 228
30
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30 000 000
Additions
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46 000
46 000 000
135135
122
SENTECH
SENTECH
SENTECH INTEGRATED
INTEGRATED
INTEGRATED REPORT
SENTECHREPORT
REPORT2019/20
INTEGRATED REPORT 2019/20
2019/20
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Government
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31 March 2020
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17.
17. PROVISIONS
PROVISIONS
17. PROVISIONS
PROVISIONS
17. PROVISIONS
OVISIONS TheEf
19.
Figures
Figures
Figures in
in Rand
in RandRand thousand
thousand
thousand 20202020
2020 20192019
2019
Reconciliation
Reconciliation of
of provisions
provisions
Reconciliation of provisions
The f
Opening
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balance
balance 46 228
46
46 228 228 30 000
30 000
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46 000
46 000 000
46 46
46 228
228
46 228
46
46 228
228 228
Utilised
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46
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46 228
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46 228 228
The The
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GROUP
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Figures
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in Rand
Figures
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Analysis
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46 228
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46 228
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18. REVENUE
18.REVENUE
REVENUE
REVENUE
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18. REVENUE
GROUP
GROUP
GROUP & COMPANY
&&COMPANY
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GROUP & COMPANY
Figures
Figures in Rand
in Rand thousand
thousand 20202020
2020 2020 20192019
2019
Services
Services rendered
rendered
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Services rendered
Terrestrial
Terrestrial television
television services
services
Terrestrial television services 673 673
673 308
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308 308 650 650
994994
650 994
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344 159
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INTEGRATED
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ANNUAL
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Other
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Bag NA DET6A2020
fromfrom
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comprises of the following:

1 349 974 0402 ,w1e312
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88 88 879
88 879
879 85 85 115
85115
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of goods
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following:
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of the the mprises of the following:
88 879 85 115
VividVivid
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75 75
75 75 1 189
189
1 189
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cardscards 42 42 000
42 000
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1 166
1 166 166
Smart
DTH Smart cards
Revenue from Sale of goods 125

Total Revenue 4801
11 480 480
480 928
928
1 928 928 1
399 399
127127
1 127
1 399 399 127
Total Revenue
125
Total Revenue
Vivid 75 1 189
123
SENTECHREPORT 2019/20
DTH Smart cards SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
2019/20 42 000 2019/20
2019/20 1 166
International business 2 352
Other
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24 22
22
Other 24 22
tes
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to the
the Financial
Statements 1 349 974
1 974 1 312 823
823
1 349
349 974 1
1 312
312 823
the
the year
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31 March
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2020
Revenue
tes to the from Rental
Financial
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Notes to
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comprises
the year ended
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the
ofMarch
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following:
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the following:
2020 Statements Not
Not
EXPENSES
19.
For EXPENSES
the year ended 31 March 2020 For t
For
EXPENSES
19.
19. EXPENSES
19. EXPENSES
Facility rentals
EXPENSES
Facility 88 879 85 115 For tt
Facility rentals
rentals 88
88 879
879 85
85 115
115
following
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The
19.
following disclosed
following
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19.
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following
disclosed for
is
is profit
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disclosed for
for
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and
from continuing
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from operations:
continuing
continuing
continuing operations:
operations:
operations: Oper
19.
The
The EXPENSES
following
following is
is disclosed
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for profit
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and loss
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from continuing
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Revenue from
Revenue from SaleSale of of goods GROUP
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of
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disclosed
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thousand forfor profit
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from from continuing
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operations:
operations: 2020 2019 Restated
comprises
Figures
Figures in
in of
Rand
Randthe following:
thousand
thousand 2020
2020 2019
2019 Restated
Figures in Rand thousand GROUP & 2020
COMPANY 2019 Restated
Restated
Vivid
Employee
Vivid costs (note 20) GROUP &
463 COMPANY
75
757
75 4531 189
1 069
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Vivid
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costs
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(note
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(note
20)
20)
20)
463
463
463
757
75
757
757
453
453
4531 189069
189
069
069
Figures
Figures
DTH Smartin
in Rand
Rand
cards thousand
thousand 42 2020
2020
000 2019
2019 Restated
Restated
1 166
Depreciation,
DTH Smart
Depreciation,
DTH Smart cards
cardsamortisation
amortisation and
and 42
42 000
000 1
1 166
166
Depreciation,
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and 233
233 491
491 72 692
72 692
Employee
impairments*
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(note 20) 20) 233
463
233 757
463 491
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impairments*
impairments* 1
1 480
480 928
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1 399
399 127
127
Total
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Operating
Total Revenue
Depreciation,
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lease expense
amortisation
expense -- satellite
and
Operating
Operating lease
lease expense
expense -- satellite
satellite
satellite 233
31
233
31 491
883
491
883 72 692
271
72
271 692
217
217
impairments*
rental**
impairments*
rental** 31
31 883
883 271
271 217
217
rental**
rental**
19.
19. EXPENSES
EXPENSES
19. EXPENSES
Operating
Direct
Operating
Direct lease
lease expense
expenses
expenses expense -- satellite
satellite 267
267 606
606 213
213 538
538
Direct
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19. expenses
expenses
EXPENSES 267
31
31 883
267 606
606
883 213
271
213 217
271 538
538
217
rental**
19. EXPENSES
rental**
19. EXPENSES
Operating
Operating
The following expenses
expenses
is disclosed for profit and loss from continuing operations:223
223 043
043 234
234 477
477
Operating
The following
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The following expenses
is
is disclosed
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profit and and loss
loss from
from continuing
operations:223
223 043 043 234
234 477 477
Direct
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expenses 267
267 606 606 213
213 538 538
The
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GROUP & COMPANY
The following is
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from continuing
GROUP
operations:
GROUP &
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1 219
219 780
COMPANY
780 1 244
1 234
244 477 993
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223
1 223
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043
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244 477
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Figures in
in Rand
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GROUP &
& 2020
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2020
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2019 Restated
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Figures in Rand
in costs (notethousand 20) 1 463
219
463 780
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463 780
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244 069
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233 757
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72 692
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ct Expensesimpairments*
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62 491
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62 360
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233 491
360 72
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impairments*
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impairments* lease expense - satellite 233 491 72 692
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lease expense - satellite- satellite 31 883883 271 217
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rental** costs 31
140
31 961 271
131 217
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rental**
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rental**
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costs
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140
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360
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131
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31 883 271 217
271 217
rental**
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rental**
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expenses 31
267
267 883
606
606 271
213
213 217
538
538
rental**
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411 213 5538
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622 273 351
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267
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Other Direct Expenses 58 252 27 351
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neydew,
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*- Exponential
Exponential increase in
in depreciation
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is aa as
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Application
Application of IFRS
of 16 prescripts
Application
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increase
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prescripts
in
in depreciation
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asset recognised in
in
Application
Application of
of IFRS
IFRS 16
16 prescripts
prescripts
Application
**
** The of
decreaseIFRS
in 16 prescripts
operating lease expenses is a result of applying IFRS 16 where lease costs are derecognised,
** The
The decrease
decrease inin operating
operating lease
lease expenses
expenses is is aa result
result of
of applying
applying IFRS
IFRS 16
16 where
where lease
lease costs
costs are
are derecognised,
derecognised,
and
and depreciation
depreciation
** The
The decrease in and
and
inand finance
finance
operating costs
costs
lease recognised
recognised
expenses instead.
instead.
is instead.
a result
result of
of applying
applying IFRS
IFRS 16
16 where
where lease
lease costs
costs are
are derecognised,
derecognised,
and
** depreciation
decrease finance
operating costs
lease recognised
expenses is a
** The decrease in operating lease expenses is a result of applying IFRS 16 where lease costs are derecognised,
and depreciation
and depreciation and
and finance
finance costs
costs recognised
recognised instead.
instead.
and depreciation and finance costs recognised instead.
138
138
138
138
SENTECH
SENTECH INTEGRATED
138
138 REPORT 2019/20

SENTECH REPORT 2019/20 124
SENTECH INTEGRATED
SENTECH INTEGRATED2019/20
REPORT 2019/20
Other operating expenses
Other operating
Operating expensesexpenses
is made up of the following:
Operating Operating
Operatingexpenses expenses
expenses
expensesis isismade
is made
madeup up
up
upofof the
the following:
the following:
ofthe following: GROUP & COMPANY
Operating Operating expenses ismade made upof of the following:
following: GROUP & COMPANY
Other
Figures operating
in Rand expenses
thousand 2020 2019
Other
Other
Other Figures
Other operating
operating
operating expenses
in Rand thousand
expenses
expenses 2020 2019 Not
Not
Otheroperating
Operating
Operating operating expenses
expenses
lease expenses
expenses
GROUP & COMPANY
tes to
tes to theNotes
the
Operating Operating
Operating to
Financial
Financial
Operating the
expenses
expenses
lease
expenses Financial
Statements
isismade
expenses
is madeup
made
Statements upof
up Statements
ofthe
of the following:
the following:
following: GROUP
GROUP
GROUP & & COMPANY
&COMPANY
COMPANY For t
For t
the year
Operating
ended
Operating
Figures in
31
expenses
expenses
Rand isismade
thousand
March 2020
madeup upofofthe
the following:
following: 2020 GROUP
GROUP&&COMPANY COMPANY 2019
the yearFor
the year ended
ended
Figures
Figures Figures
theoperating
Premises
Other
FiguresPremises
year
31
in
31
in
in
in
Rand ended
March
March
Rand
Rand
2020
expenses
thousand
2020
thousand
thousand
31 March 2020 2020
2020
2020
14
14
298
298 2019
2019
2019
18 273
18 273
Other
Other
OtherOther
Figures
Operating
Otheroperating
Operating inRand
operating
operating
operatingRand
lease
operating
thousand
expenses
expenses
thousand
expenses
expensesexpenses
expenses
2020
2020 2019
2019
Operating lease expenses GROUP & COMPANY 20. E
Operating
Operating Operatinglease
Other leaseexpenses
expenses
lease
expenses expenses
is made
expenses
is made up up ofof the
the following:
following: GROUP
GROUP 2 229&&COMPANY
COMPANY 3 860
Operating
rating expenses
expenses Operating
Other is
Premises lease
expenses
is expenses
made expenses
is
upisof made
the up
ofmade of
of the
the following:
following: GROUP142 298 &
&&COMPANY
229 183 273 860 20. E
rating
rating Operating
expenses Figures
Premises
Other in
is made
Rand
made
operating
up
thousand
up
expensesof the
the up
following:
following: following: 2020 GROUP
GROUP
14 298
COMPANY 2019
COMPANY
18 273
Premises
Premises
er operating Premises
Figures
Figures in
in
expenses Rand
Rand thousand
thousand 2020
2020 14
14298
14 298
298 2019
2019 18
18273
18 273
273
er Other
Figures Premises operating
in Rand expenses
thousand 2020 14 298 2019 18 273
er operating
Figures
operating
Other
Other
Other
Operating
Other
Auditors
expenses
Figures operating
expensesinRand
in
operating
operatingRand expenses
thousand
leasethousand
expenses
expenses
remuneration
2020
2020
GROUP 2 229 & COMPANY
2019
2019
3 860
Operating OtherOperating
Operating
Auditors lease
lease expenses
expenses
remuneration
lease GROUP 22229229
& COMPANY
COMPANY 33860 860
Other
Operating
Other Other
Operating leaseexpenses
lease expenses
expenses GROUP 2
2 229
&
229 3
183860
3 860
Other
Premises
Figures in Rand thousand 2020 GROUP 142 298 & COMPANY 2019
229 860
273
Premises Premises
Premises
Figures in Rand
Rand thousand
thousand 14
14
14 298
298
2020
298 18
18
18 2019 273
273
273
Figures
Premises
Figures -Premises
AuditorsCurrent in
inremuneration
Rand
year thousand
audit fees 14
14 2020
298
298
42020
743 18
18 2019
22019 273
273
754
Operating
Auditors
Other lease
- Currentremuneration
year expenses
audit fees 24 229
743 32 860 754
Auditors
Auditors
Operating Auditors
Operating remuneration
remuneration
lease
lease expenses
remuneration
expenses
Operating
Other OtherOther
Auditors remuneration
lease expenses 22229
2 229 33860 860
Other Legal
Otherand consulting fees
Premises 22229
25
14 721
229
298
229 11
18 3
33860 648
860
273
860
Premises -Legal
Premises Currentandyear consulting
audit feesfees 25
14
144 298721
743
298
11
18
18 2 754 648
273
273
Premises 14 298 18 273
---Auditors Current
Transport
Current
-Transport
Current year
costs
year
year audit
audit
audit
remuneration fees
fees
fees 4 743
22
4 640
4244743
743 202 754
2
2232754 865
754
Other-Current year
costs
Currentremuneration
Auditors
Auditors year audit
auditfees
remuneration fees 22 743
640
229
743 20 754
865
860
754
Auditors
Auditors
Other Legal
Other Auditors andremuneration
consulting fees
remuneration
remuneration 25
2 229
2 721
229 11 3 860
3 648
860
Other
Legal LegalLoss
Legal and
on
and
and consulting
impairment
consulting
consultingor fees
or
fees
feesdisposal of property, 25
2
25
25 721
229
721
721 11
11
11 3 648
860
648
648
Legal Loss and
on consulting
impairment fees disposal of property, 25 721 11 648
Legal
-Transport
plantCurrentand
and consulting
costs
year audit fees
equipment fees 25
22444 743
363
721
640
363
10
11
20
10 2 865 548
648
754
548
-Transport
Transport
--Transport Transport
- plant
Current
Current
Auditors
Transport and costs
equipment
year
year
costs audit
audit
remuneration
costs fees
fees 22
4
22
22 4 640
743
743
640
640 20
20
202 2 865754
754
865
865
-Current
Auditors Current year
costs
Currentremuneration
year
year
costsaudit
auditfees
audit fees
fees 4
22
44743
22 743
640
743
640 20
202
22754 754
865754
865
Auditors
Auditors Loss
Legal
Other on
and remuneration
impairment
remuneration
consulting
Operating orfees
Expenses disposal of property, 25
49 721
476 11
51 648
298
Loss Loss
Legal Other
Legalon
Loss on
onand
on impairment
Operating
and consulting
impairment
impairment or
Expenses
consultingor fees
or
or disposal
fees
disposal
disposal of of
of property,
ofproperty,
property, 49
25
254 363
476
721
721 10
51
11648
11 548
298
648
648
Legal
Loss
Legal plant
Legal and
and
and
and equipment
consulting
impairment
consulting
consulting fees disposal
fees
fees disposal ofproperty, 25
4 363
25
25 721
721
721 11
10
11
11 548648
-plant plant Loss
Transport
Total
plant
on
Current
and
and
and
impairment
year audit
equipment
Operatingcosts
equipment
or
fees
expenses
equipment
property, 4
4444363
22
123 363
743
363
640
470
363
10
10
10
20
119
10 2 648548
548
754
548
865
246548
plant
--Transport -Transport
Total
Transport
plant and
Current
Currentand equipment
year
Operatingcosts
costs audit
equipment
year
costs audit fees
expenses
fees 4
123
22
22
4
22 743
470
640
640
743 119
20
20 2
2 754
246
865
865
754
Transport Other Current
Transport year
Operating
costs
costs audit fees
Expenses 4 640
49
22
22 743
476
640
640 20
51
20
20 2 298 865
754
865865
Other Legal
Other
Loss
Other and
on consulting
Operating
impairment
Operating
Operating orfees
Expenses
Expenses
Expenses disposal of property, 25
49
49
49 721
476
476
476 11298
51
51
51 298 648
298
Other
Legal
Loss Legal
Loss Loss
Other
Total on
on
on Operating
and
and impairment
impairment
Operating
Operating Expenses
consulting
consulting
impairment fees
or
or
Expenses
fees
expenses
or disposal of
disposal
disposal ofproperty,
of property,
property, 49
25
49
25
123 4 476
363
721
476
721
470 51
10298
11
51
11
119 548
648
298
648
246
Legal
Loss plant
Losson
Transport and
and
on equipment
consulting
impairment
impairment
costs fees
or
or disposalof
disposal ofproperty,
property, 25
44363
4
22 721
363
363
640 11
10246
10
10
20 648
548
548
548
865
Total
plant Total
plantplant
Total Operating
and
and
Operatingequipment
Operating expenses
equipment
expenses
expenses 123
123
1234 4 470
363
363
470
470 119
11910
10
119 548
246
246548
Total
plant
Transport plantand
Transport
Total Operating
and
and equipment
costs
Operating expenses
equipment
equipment
costs expenses 123
22
123
22 470
640
470
640 119
20
119
20 246
865
246
865
Transport Other costs expenses
Operating
Administration Expenses 22
49 476640 20
51 298 865
Loss
OtherOther on
Administrationimpairment
Operating
Operating or disposal of property,
expenses
Expenses
Expenses 49
49 476
476 51
51 298298
Other
Other Loss Other on Operating
impairment
Operating
Operating Expenses
or disposal
Expenses
Expenses disposal of of property,
property, 49
49
494 476
363
476
476 51
10298
51
51 548
298
Loss
Loss planton
Total onand impairment
Operatingequipment
impairment or
expenses
or disposal of property, 1234 363
4 470
363 10298
119
10 246
548
548
plant
Total plant
TotalTotal and
Operating
and
Operatingequipment
Operating
equipmentexpenses
expenses
expenses 123
123
1234 470363
470
470 10 246
119
119
119 548
246 Num
plant
Total Administration
Totaland Operating expenses
equipment
Operating expenses
expenses 123
GROUP123 470
470
& COMPANY 119246
119 246246 Num
Other
Administration
Administration Operatingexpenses
Administration Expenses
expenses
expenses GROUP49 49 476
& COMPANY 51 298
Administration
Other Other Operating
Administration
Operating expenses
Expenses
expenses
Expenses 49 476
476 51
51 298
Other Operating expenses
Total Operating Expenses 492020
123 476
470 51 298
119 298
246 2019
Total Operating expenses 2020 2019
Total Operating
Total Operating expensesexpenses GROUP123 &
123 470
123
470
COMPANY
470 119
119 246
119
246
246
Licences
Administration expenses GROUP & 7COMPANY
987 7 584
Licences
Administration
Administration expenses
expenses GROUP
GROUP &
GROUP &7COMPANY
COMPANY
987 7 584
Administration expenses GROUP&&2020 COMPANY
COMPANY 2019
ministration
Administration -Administration
Spectrum
expenses expenses
expenses
expenses 12020
200 12019
804 21
ministration
ministration
Administration - expenses
Spectrum
expenses 2020
12020
200
2020 2019
12019
804
2019 21.21
F
Licences 72020
987 72019
584 21. F
- ECNS/ECS
Administration
Licences expenses GROUP &76COMPANY787
987 7 4584942
Licences
Licences Licences
- ECNS/ECS GROUP &
GROUP &7
& 987
776COMPANY
987
787
COMPANY
COMPANY
987 7
7174 584
584
942
Administration
-Administration
Administration Licences
Spectrum expenses
expenses
expenses
GROUP
GROUP&&172020
GROUP 987
200
COMPANY
COMPANY 7584
584
804
--SpectrumOther
Spectrum 11200200 - 11804 838
2019
804
-----Spectrum Spectrum
Other
Spectrum
ECNS/ECS
1
1 200-
2020
2020
200
62020
12020
200
787
1
1 804
838
2019
2019
804
42019
12019
804
942 Fi
Other
Licences administration expenses GROUP & 7572020050
987
COMPANY 87 72019417
584 Fi
---Licences ECNS/ECS
ECNS/ECS
-Other
ECNS/ECS administration expenses 6
6
76
787
787
787 4
4
44
942
942
942
Licences -Licences
ECNS/ECS
-Licences
ECNS/ECS GROUP &75 6
7
050
7COMPANY
987
987
787
987
87
7
7
417
74584
584
584
942 D
Licences--Total
Other
Spectrum
Other
GROUP
GROUP & &716 787
987-
7COMPANY
987
COMPANY
200
2020---
7 1
942
838
7584
584
804
2019
838 D
---Other Other
--Other
Other Administration expenses
Spectrum
Spectrum 112020200
200 -- 112019838
838
804
804
838
--Total Other Administration
--Spectrumadministration expenses
Spectrum
Spectrum
ECNS/ECS
expenses 83
1
75
162020
83
037
1200
050
2020
200
200
037
787
8795
1
1
95 4
001
804
838
417
2019
1 804
804
001
2019
942 Sa
Other Other
Licences
Other administration
administration
administration expenses
expenses
expenses 75
75
757 050
987
050
050 87
87 87 7 417
584
417
417 Sa
Other -Other
-Licences ECNS/ECS
ECNS/ECS
administration
administrationexpenses 66987
75
7 787
787
050 87 44584
7 942
942
417
--Licences
Licences
-Total
ECNS/ECS
-ECNS/ECS
ECNS/ECS
Administration expenses
expenses 6
75
7
6
7
787
050
6987
787
787
987 874
7
4
7
942
417
4584
942
942
584 Hea
-Total
-Total -
Other
Spectrum
Other
Other Administration0004
44 41 expenses
1expenses
74 41 11 10 0 ::eenno ohhp pe elle
eT
T
1 200
83 037-- - 1
95 838 838
804
001
838 Hea
In
Head --Total Total
Other Administration
Administration
Spectrum Office expenses
Telephone: 1 200200 ---011 471 4400 e
eccfi
fiffO
O95 1d 804
838a
ae eH Sen
4d H
Administration
Spectrum
-Spectrum
Other
Other 0 expenses
7 83
1
83 037
037 95 1 001
804
838
838
001 In
-Other-Total Administration
ECNS/ECSadministration expenses
expenses 83
1
75
83
836 200037
050
037
787
037 87
95 95
95
1 001
804
417
001
942
001 Sen
Sender -Other
--Other
Other
Other
-Other ECNS/ECS
ECNS/ECS 2338
administration
administration 86
Technology
administration
2
administration
administration
ECNS/ECS
633expenses
7expenses
06
expenses
expenses
7 0 68
expenses 8Park
0 ::rre
0 ett(STP)
ne
n eCC llllaaCC )
Call)P P T S75
75
TS756
Center:
6
75
75( k
787
050
6( 787
r
050
050
k050
050
787
a
ra- PP y
0860g o
ygo736l o n
lonh832h c e T
ceT r87 r87
87 e
874
e44 d
87 d417
417
942
417
942
417
417
942
n
neSe S B
Oct
B
Total Other Administration
Selling expenses expenses 838 Oct
Octave -Total
-Total
-Total 5
Other
Selling9 5
54
expenses 1
17
4Street
9Administration
Administration
5Administration
Other
Other 74
41 11 7
72 2+
expenses
expenses
1expenses + ::lla an nooiittaannrreettn
nII 83 037-- +27 11
International: - tte e
errttS
e471 e
S4595 95v
e95 v001a
838
001
a001
838
838 ttccO
O Rad
Total
OtherTotal
CSI,
Administration
Administration
administration
Advertising and
expenses
expenses
expenses
other selling
83037
83
75
83
83
83
037
037
050
037
037 0 4 0 2 , p o
95
87
k
95
95
95 o
001
417
i
001
001 d a R Rad
O
O
Radiokop, Other
Other
Other
Selling
expenses expenses2040
administration
CSI, Advertising
administration
administration and otherexpenses
expenses
expensesselling 75
16 050
75
75
16050
050
537
537 0402 ,po87 87
k20
87 20o417
417
idaR
230
417
230
Total
Sellingexpenses
Administration
expenses expenses
ng expenses
ng
ng
expenses
Selling
expenses
Selling
Selling
Total a
Selling zzAdministration
..expenses
o
aAdvertising
Selling o cc..h
expenses
expenses
expenses hcce
Administration
expenses e ttn e
nother ss@
eexpenses ttrro
@selling
expenses op pp puuss ::lliia
amm--EE E-mail: 83 support@sentech.co.za
83 037 95 001 Pos
Total
CSI,
Total Administration and expenses 037
s s er d d A 95
la 001
a230 Pos
ttsso oPP
CSI, Advertising and othera z . o c
selling. h c e t n e s .w w w 83
16 037
83 537
037 95
20
95 001
230
001
Postal CSI, CSI,Advertising
expenses Address
Advertising
Advertising and other
andother
other selling
selling
az.selling
o c.hcetnes.www www.sentech.co.za s s er d d A l Priv
CSI, and 16 537 20
CSI, Advertising and other selling 16
16 537
537 20 20 230
230 Priv
Private0202 TROANNUAL
INTEGRATED PER LAUNREPORT
expenses
Selling
Selling
Selling NA DET0664A2020
expenses
Selling
expenses
expenses
expenses 0X
Sellingexpenses XR
g
gaaG
BE
expenses
0 B
expenses
expenses
Sellingexpenses
expenses
e aTvvN
etta
Bag X06
02 ,wedyenoH
PI
iirrP
CSI, Advertising and other selling
16
16 537537
60X gaB e20ta230 20 230
virP Hon
Hon
Honeydew, CSI,
CSI,
CSI,
CSI,Advertising
expenses Advertisingand
Advertising
CSI,Advertising
Advertisingand
2040
and
and otherselling
other
andother
other
selling
selling
otherselling
selling
16 537
16537
16 537
537
0402 ,wed20
ye230
20 noH
20230
230
Selling
expenses
expenses expenses 139 16
16537
16 537 20
20230
20 230
230 22
expenses
expenses expenses 139 22
Selling
Selling expenses
Selling expenses expenses
CSI, Advertising and other selling
CSI,
CSI, Advertising and
Advertising and other
other selling
selling 139 16 537 20 230
CSI,expenses Advertising and other selling 139 16 537
16 537 20 230
20 230
expenses
expenses 139
139
139 16 537 20 230
expenses 139 Fi
Fi
139 R
R
139
139
139
139
139 Le
SENTECH
SENTECH INTEGRATED
INTEGRATED REPORT
REPORT 2019/20
2019/20 Le
139 O
139
139 127O
139
125 SENTECH INTEGRATED REPORT
REPORT 2019/20 126
126 O
SENTECH
SENTECH INTEGRATED
2019/20 126 O
tes NotesFinancial
to the Financial Statements
tes to
toForthe
the Financial
the year
Statements
Statements
ended 31 March 2020
the yearNotes
the year ended to
ended 31 the Financial
31 March
March 2020
2020 Statements
For the year
20.ended 31 March
EMPLOYEE COST 2020 22
20.
20. EMPLOYEE COST
20. EMPLOYEE
EMPLOYEE COST COST 22
20. 20. EMPLOYEE
EMPLOYEE COST
COST
20. EMPLOYEE COST
EMPLOYEE COST 20. EMPLOYEE COST
EMPLOYEE
20.COST
EMPLOYEE COST COST
20. EMPLOYEE GROUP & COMPANY
GROUP
GROUP &
& COMPANY
GROUP & COMPANY
COMPANY
GROUP & COMPANY
GROUP & COMPANY
20. EMPLOYEE COST Fi
20. EMPLOYEE
Figures in RandCOSTthousand 2020 GROUP & COMPANY 2019 Fi
Figures in Rand
Figures thousand
in Rand thousand 2020 GROUP & COMPANY
2020 2019 2019 R
Figures in Rand thousand 2020 2020 2019 2019 R
Figures in Rand thousand 2020 GROUP & COMPANY2019
Figures in
Salaries andRand
Wagesthousand 2020GROUP
375 055
& COMPANY 2019 370 118
Salaries
Salaries and
and Wages
Figures
Salaries
Wages in
andRand
Wagesthousand 375 055
2020
375 055 375 055 370
370 118
2019 370 118
118 Le
Salaries and Wages
Salaries and Wages 375 055
375 055 370 118
370 118 Le
Figures
Salaries in
Medical aidRand
and thousand current employees
Wages
contributions- 2020 375 055
46 409 2019 370 118
42 700 O
Medical
Medical aid
aid contributions-
Figures
Salaries
Medical in
aidRand
and
contributions- current
thousand
Wages employees
contributions-
current current employees
employees 46
46 409
2020
409 375 055
46 409 42 700
2019 370
42 700
700 118
42 700
Medical O
Medical aid contributions- current employees
aid contributions- current employees 46 409
46 409 42
42 700
Salaries
Medical and Wages
aid contributions- current employees 375 055
46 409 370 118
42 700 O
Salaries
Medical and
Medical aid Wages
aid contributions-
contributions- current employees
post-retirement 375 055
46 409 370 118
42 700 O
Medical aid contributions-
aidMedical
Medical aid post-retirement
aid contributions-
contributions- post-retirement
post-retirement 4 837 4 799
Medical contributions-
obligations, post-retirement
excluding interest 4 837 4 837 4 799 424 700
799
Medical aidMedical
obligations, aidinterest
contributions-
excluding contributions- current employees
post-retirement 4
4 837
837 46 409 4
4 799
799
obligations,obligations,
Medical
excluding aid excluding
interest interest
contributions- current employees 46 409 42 700 Po
obligations,Medical
obligations, excluding
excluding aidinterest
contributions-
interest post-retirement
Medical aid contributions- post-retirement
4 837
4 837
4 799
4 799 Po
obligations, excluding interest 4 837 4 799
Statutory obligations,
Statutory
charges
Medical aid excluding interest
charges
contributions- post-retirement
Statutory Statutory
Statutory charges
charges
Medical aid charges
contributions- post-retirement 942 4 942
837 1
1 003
14 003
799
obligations, excluding interest
Statutory charges 942
942
942 4 942
837 1 003
1 003
003
14 003
799 Fi
Statutory charges
obligations, excluding interest Fi
Pension Pension
Statutory
costs costs
-- defined - defined contribution
charges
contribution plan plan 36 515 36 515
942 34 449 34 1 449
003 IF
Pension Pension
costs costs
defined - defined contribution
contribution plan plan 36 515 36 515
942 34 449 341 449
003 IF
Pension costs
Pension costs - defined
- defined contribution plan
contribution plan 36 515
36 515 34 449
34 449
Statutory charges 23
Pension costs
Statutory - defined contribution plan
charges 36 757
515
942 34 449
1069
003 23
Pension costs - defined contribution plan 463 757 46336 515
942 453 069 453 34 449
1 003
463 757 463 757 453 069 453 069
Pension costs - defined contribution plan 463 757 36 515 453 069 34 069
449
463 757 453
Pension costs - defined contribution plan 36 515
463 757 34 069
453 449
Number of persons employed
mber ofNumber
Number
persons
Number
Number
of persons
of
of
Numberemployed
persons
employed
of persons
of Number
persons
employed
employed
ofemployed
persons employed
persons employed
employed 463 757 453 069
Fi
Fi
mber of persons
Number of Total
persons employed
number of employees at year-end 463 508
757 453 069
531
Total number
Total number
number of
Number
Total employees
of persons
number
of employees
employees at year-end
employed
of employees
at year-end
year-end at year-end 508
508 508 531
531 531
Total
Total number of
Number of at
persons
of employees employed
at year-end 508
508 531
531 M
(excluding temporary staff) at year-end M
(excluding
(excluding temporary
Total number
(excluding
temporary staff)
of employees
temporary
staff) staff) at year-end 508 531
Number
(excluding temporary ofstaff)
Total number persons employed
of employees 508 531
Number ofstaff)
(excluding temporary persons employed Cu
(excluding temporary staff) Cu
FINANCETotal
21.INCOME number
INCOME
(excluding of employees
temporary staff) at year-end 508 531
1. FINANCE
21. FINANCE
21. FINANCE Total
INCOMEnumber of employees at year-end
INCOME 508 531 Lo
1. FINANCE
FINANCE INCOME
INCOME Lo
FINANCE 21. INCOME (excluding temporary staff)
FINANCE(excluding
INCOME temporary staff) Lo
Lo
GROUP & COMPANY
GROUP & COMPANY
GROUP & COMPANY
igures Figures in Rand
21. FINANCE thousand
INCOME 2020 2019 Ta
igures in
in Rand
Rand thousand
thousand 2020
2020 GROUP & COMPANY 2019
2019 Ta
Dividend revenue
Dividend revenue
Dividend revenue GROUP & COMPANY
Dividend
Sanlam revenueInvestments Dividends
Collective 18 307 21 175
FiguresInvestments
anlam Collective in Rand thousand
Dividends 2020
18 307 2019
21 175
anlamHead
CollectiveOffice
Investments Dividends 18 307 21 175 D
ad Office Dividend revenueInvestments Dividends Telephone: Telephone: 011 471 011
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nterest
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support@sentech.co.za 0402 ,pokoidaR
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International:
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22. FINANCE COSTS
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GROUP GROUP & COMPANY R
GROUP & & COMPANY
COMPANY
Figures in Rand
22. FINANCE
igures in Rand thousand thousand
COSTS 2020 2020 2019 2019
GROUP & COMPANY
2019
igures in Rand thousand 2020
Recognised Recognised
in profit in
and profit
loss and loss
Figures in Rand
Recognised in profit and loss thousand 2020 2019
GROUP & COMPANY
Lease interest
Recognised
ease interest in profit and loss 554 158 554
1582020
ease interest 158 554 2019 - -
-
Other financial interest
Other 127Lease
Other financial
interest
Recognised
interest in profit and loss 140 140 158 554
-
financial interest SENTECHSENTECH INTEGRATED
140
140 2019/20
REPORT
interest SENTECH INTEGRATED
140 REPORT 2019/20 158 554 21 Other
Other financi
Lease
Other 140 40 21 -126
Other SENTECH INTEGRATED
140 REPORT 40
402019/20
Other
Other financial interest 2 832 2 832 3 983 3 983
21
140 40
Bank 20 871 21 207
Overdue accounts 44 425 39 370
20 603
83 871 21 752
81 207
83 603 81 752
Overdue accounts 83 603 81 752
20
83 871
603 21
81 207
752
Notes 83 603 81 752

Notes toto the
the Financial
Statements
2. FINANCE22.
ForFor
theFINANCE
the year
year
COSTS COSTS
ended
ended 3131 March
March 2020
2020
Notes
2. FINANCE to the Financial Statements
COSTS
For22.
theFINANCE
22.22.
FINANCE
COSTS 31 March 2020
year ended
COSTS GROUP & COMPANY
FINANCE COSTS GROUP
GROUP & & COMPANY
COMPANY
Figures
22. FINANCE
igures in Rand in Rand
thousand thousand
COSTS 2020 2020 2019 2019
GROUP & COMPANY
2019
igures 22. FINANCE
in Rand thousand COSTS 2020
Recognised Recognised
in inloss
profit and loss
in profit
profitinand
RecognisedFigures Rand
and thousand
loss 2020
GROUP & COMPANY
2019
Lease interest
Recognised
ease interest in profit and loss 158 554 1582020554
ease interest 158 554 -- 2019 -
Other
Lease financial
interest
Recognised
Other financial interest interest
in profit and loss 158 554 -
Other financial interest
Other Other
Other interest
Lease financial interest 158 554 21 21-
Other 40 40 21
40
Other
Other financial interest 2 832 2 832
40 3 983 3 983
21
Post-retirement
ost-retirement medical medical interest 2 832 3 983
ost-retirement medical interest
Post-retirement interest
medical interest 161 426 1612 426 4 004 43 004
Other 832
40 983
21
161 426 4 004
Post-retirement medical interest 161 426 4 004
inance costsFinance costs have
have increased increased
exponentially exponentially
in the current in theyearcurrentdue toyear due to recognition
recognition on finance costson finance
2 832 costs as
as required byrequired by 3 983
inance costsIFRShave
16. increased exponentially in the current year due to recognition on finance costs as required by
FRS 16.Finance costs have increased exponentially in the current year due to161
FRS 16. Finance costs have increased exponentially in the current year due to recognition recognition on426finance costs onasfinance
requiredcosts by as4 004
3. 23.
required TAXATION
IFRS 16.by IFRS 16.
3. TAXATION
TAXATION
Finance
Finance
Finance costs
costshave
costs have increased
haveincreased
increased exponentially
exponentially
exponentially in the inin the the
current current
current
year due yearyear
todue due to recognition
to recognition
recognition on finance oncosts onasfinance
finance costs as
required costs
byrequired as by
23. TAXATION
required
IFRS16.
IFRS
23. TAXATION16.by IFRS 16. GROUP & COMPANY GROUP & COMPANY
GROUP & COMPANY
igures in Figures
23. TAXATION
Rand in Rand thousand
thousand 2020 2020 2019 2019
in 23.
igures 23.Rand TAXATION
thousand 2020 GROUP & COMPANY 2019
TAXATION
Figurescomponents
Major in Rand thousand of the tax expense 2020 2019
Major GROUP & COMPANY
Major components
components of of the
the taxtax expense
expense
Major components of the tax expense 2020 2019
urrent Current
urrent
ocal Local
Major income
components tax - current
of the period
tax expense 49 751 47 877
ocal income
income tax
tax -- current
Current current periodperiod 49
49 751
751 47
47 877877
ocal Local income tax - prior period adjustment 4 307
ocal income
income tax
tax --income
Local
Current
prior
prior period adjustment
tax - current
period adjustment period 4
4 307
307 49 751 -- 47 877-
Local
Tax income tax
recovered from - prior
grantperiod
fundsadjustment (44518)
307 (3 303)-
ax recoveredLocalfrom granttax
income funds- current period (4 518) 49 751 (3 303) 47 877
ax recovered from grant funds (4 518) (3 303)
Local income tax - prior period
fundsadjustment 49 49 540
(44 518)
307 44 574
Tax recovered from grant 49 540
540 44
44 574574 (3 303) -
141 141 49 540 44 574
Tax recovered from grant funds
Deferred – IFRS - Debit/(Credit) 141 (4 518) (3 303)
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Reconciliation of the tax taxexpense
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GROUP
2020 & COMPANY 2019
Reconciliation of the tax expense 2020 2019 & COMPANY
GROUP
Applicable tax rate 2020 28.00%2019 28.00%
Reconciliation
Applicable tax rate between applicable tax rate and average effective tax rate.
28.00%
Applicable tax rate 2020
28.00% 201928.00%28.00%
Expenses not Expenses
deductible not deductible -0.16% GROUP & COMPANY
-0.16% --12.49% --12.49%
Expenses not Applicable
deductible tax rate -0.16% 28.00% --12.49% 28.00%
Previous yearPrevious
over year over provision
provision 2020
-5.19% -5.19% 2019 2.92% 2.92%
Previous year Expenses not deductible
over provision -5.19% -0.16% 2.92% --12.49%
Current Applicable
Current taxtaxpriorrate period error 28.00%
1.90% 28.00%-
Current tax prior
prior period
tax Previous yearerror
period over provision
error SENTECHSENTECH INTEGRATED INTEGRATEDREPORT 2019/20 1.90%
REPORT
1.90% 2019/20 -5.19% -- 2.92%
Deferred taxExpenses
Deferred
prior notprior
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error period SENTECH
error INTEGRATED REPORT 2019/20 25.30% -0.16%
25.30% -2.42% --12.49%
-2.42%
128
Deferred 127
taxCurrent tax prior
prior period error period error
SENTECH INTEGRATED 25.30% 2019/20
REPORT 1.90% -2.42% -
Dividend Previous
Dividend
income year
income
exempt over provision
exempt SENTECH INTEGRATED REPORT
3.91% -5.19%
3.91%
2019/20 -2.64% 2.92%
-2.64%
Deferred
Dividend income exempttax prior period error 3.91% 25.30% -2.64% -2.42%
Current tax prior
Amortisation period errorgrant/Capitalised income
of government 1.90%
-3.45% -2.05%-
(108
(108 289)
289) (7 814)
(7(7814)
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(58 (58 749)
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Deferred
Deferred tax -tax - OCI
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Notes
Notes to to
the the Financial Statements
Financial
NotesActuarial
Actuarial
Actuarial
Actuarial Financial Statements
gains/(losses)
to gains/(losses)
Actuarial the
gains/(losses)
gains/(losses)
gains/(losses) Statements (5 (5 140)
140)
(5(5140)
(5 140)
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393
393
393
393
393
For
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31 March
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taxrate.
rate. GROUP
GROUP & & COMPANY
COMPANY
GROUP
GROUP
GROUP& &&COMPANY
COMPANY
COMPANY
2020 2020 2019 2019
2020
2020 2020 2019
2019 2019
Applicable
Applicable tax tax rate
rate 28.00%
28.00% 28.00%
28.00%
Applicable
Applicable
Applicable tax
tax
tax rate
rate
rate 28.00%
28.00%
28.00% 28.00%
28.00%
28.00%
Expenses
Expenses not not deductible
deductible -0.16%
-0.16% --12.49%
-12.49%
Expenses
Expenses
Expenses not
not
not deductible
deductible
deductible -0.16%
-0.16%
-0.16% -12.49%
--12.49%
--12.49%
Previous
Previous year year
over over provision
provision -5.19%
-5.19% 2.92%
2.92%
Previous
Previous
Previous year
year
year over
over
over provision
provision
provision -5.19%
-5.19%
-5.19% 2.92%
2.92%
2.92% -
Current
Current tax tax prior
prior period
period errorerror 1.90%1.90% -
Current
Current
Current tax
tax
tax prior
prior
prior period
period
period error
error
error 1.90%
1.90%
1.90% -- -
Deferred
Deferred tax tax prior
prior period
period errorerror 25.30%
25.30% -2.42%
-2.42%
Deferred
Deferred
Deferred tax
tax
tax prior
prior
prior period
period
period error
error
error 25.30%
25.30%
25.30% -2.42%
-2.42%
-2.42%
Dividend
Dividend incomeincome exempt
exempt 3.91%3.91% -2.64%
-1.83%
Dividend
Dividend
Dividend income
income
income exempt
exempt
exempt 3.91%
3.91%
3.91% -1.83%
-2.64%
-2.64%
Amortisation
Amortisation of of government grant/Capitalised income -3.45% -2.05%
Amortisation
Amortisation
Amortisation ofofgovernment
of government
government
government
grant/Capitalised
grant/Capitalised
grant/Capitalised
income
income
grant/Capitalisedincome
income
-3.45%
-3.45%
-3.45%
-3.45%
-2.05%
-2.05%
-2.05%
-2.05%
Depreciation
Depreciation of of buildings -7.28% 1.19%
Depreciation
Depreciation
Depreciation ofofbuildings
of buildings
buildings
buildings
-7.28%
-7.28%
-7.28%
-7.28%
1.19%
1.19%
1.19%
1.19%
Deferred
Deferred tax tax
out out
of of balance
balance due due
to to temporary differences not
Deferred
Deferred
Deferred tax
tax
adjustedtax out
out
out
for of
of
in balance
balance
of balance
income due
due
taxduetototemporary
to
returntemporary
temporary
temporary
differences
differences
differences
differences
not
not
not
not 1.69%1.69% - -
adjusted for in 1.69% -- -
adjusted
adjusted for
adjustedfor ininincome
forin income
income
tax
tax
incometax
return
return
taxreturn
return
1.69%
1.69%
44.72%
44.72% -13.32%
-13.32%
44.72%
44.72%
44.72% -13.32%
-13.32%
-13.32%
24. 24. CASH
CASH GENERATED
GENERATED FROM
FROM OPERATIONS
OPERATIONS
24.
24.
24.CASH
CASH
CASH GENERATED
GENERATED
GENERATEDFROM
FROM
FROMOPERATIONS
OPERATIONS
OPERATIONS
24. CASH GENERATED FROM OPERATIONS
24.24.
CASHCASH GENERATED
GENERATED FROM
FROM OPERATIONS
OPERATIONS
GROUP
GROUP & & COMPANY
COMPANY
GROUP
GROUP
GROUP&&&COMPANY
COMPANY
COMPANY
Figures
Figures in in Rand thousand 2020 2019
Figures
Figures ininRand
Figuresin Rand
Rand
thousand
thousand
Randthousand
thousand
2020
2020
2020
2020
2019
2019
2019
2019
Operating
Operating profit profit 261 261
206 206 154 154
650 650
Operating
Operating profit
Operatingprofitprofit 261
261 206
261206
206 154
154 650
154650
650
Adjustments for:
Adjustments
Adjustments
Adjustments
Adjustmentsfor:
for:
for:
for: 142142
Depreciation and amortisation 142
142 233 491 72 692
Depreciation
Depreciation and
and amortisation
amortisation 233
233 491
491 72
7272692
692
Depreciation
Depreciationand andamortisation
amortisation 233
233491
491 72 692
692
LossLoss
on on disposals
disposals of of property, plant and 15 723 23,022
Loss
Loss on
Losson disposals
ondisposals
disposalsof ofofproperty,
property,
property,
plant
plant
property,plant
and
and
plantand
and
15
15
723
1515723
723
723
23,022
23,022
23,022
23,022
equipment
equipment
equipment
equipment
equipment
DTT DTT
Dual Dual illumination
illumination (146 (146
000) 000) (130 (130
563) 563)
DTT
DTT Dual
DTTDual illumination
Dualillumination
illumination (146
(146 000)
(146000)
000) (130
(130 563)
(130563)
563)
Post-retirement
Post-retirement medical
medical aid aid benefit
benefit obligation
obligation 976 976 11 0081 008
Post-retirement
Post-retirement
Post-retirementmedical medical
medicalaid aid benefit
aidbenefit obligation
benefitobligation
obligation 976
976
976 008
1 1008
008
repayment
repayment of of loans to subsidiary -- - - -
repayment
repayment
repaymentof ofofloans
loans
loans
loansto
to
totosubsidiary
subsidiary
subsidiary
subsidiary -- -- -
(Decrease)/increase
(Decrease)/increase in in provisions (228) 16 228
(Decrease)/increase
(Decrease)/increase
(Decrease)/increasein ininprovisions
provisions
provisions
provisions
(228)
(228)
(228)
(228)
16
1616228
16 228
228
228
Movement
Movement in in SARS Tax account -- -
Head
Movement OfficeininSARS
SARS Tax account
hpTelephone:
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011 471
471 4400
4400
--
(146)
-- -
Other
Other
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Technology
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(146)
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Other
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Cash non-cash
Technology
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38Park
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11 471
4714595
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2040
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15 870
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1515870
15 870
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E-mail:
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(81 620)
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Trade and other payables 7 587
687
222INTEGRATED REPORT
Postal
Postal Address
Address www.sentech.co.za
0 0 O P E
EER LLA U N N A E R G E N
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and other
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33 687
587
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Private
Private
Private
Cash Bag
Bag
Cash
Bag
generated X06
X06
generated
X06
from from operations
operations 441 441
852
974 852
974
Cash generated from operations 441
74 852
974
Honeydew,
Cash
Cash
Honeydew,
generated
generated from
2040 2040
from operations
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74441852
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74 852
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Honeydew,
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25. 25. INTEREST

INTEREST PAIDPAID
25.
25. INTEREST
25.INTEREST PAID
INTERESTPAID
PAID
GROUP
GROUP & & COMPANY
COMPANY
GROUP
GROUP
GROUP& &&COMPANY
COMPANY
COMPANY
Figures
Figures in in Rand
Rand thousand
thousand 2020
2020 2019
2019
Figures
Figures ininRand
Figuresin Rand thousand
Randthousand
thousand 2020
2020
2020 2019
2019
2019
(2 (2 872)
872) 128Amount r
Amount
Amountrecognised
recognisedininprofit
profitororloss
SENTECH
SENTECH
lossSENTECH
SENTECH
INTEGRATED
INTEGRATED
INTEGRATED
REPORT
REPORT
REPORT
2019/20
2019/20
(2(2872)
(2 872)
2019/20872) (4 004) 129Amount
(4 004)129Amount reco
reco
SENTECH INTEGRATED REPORT 2019/20 (4 004)
(4(4004)
004)
CashCash generated
generated from from operations
operations 441 441
852 852 74 74 974
Cash
Cash generated
Cashgenerated from
generatedfrom operations
fromoperations
operations 441
441 852
441852
852 7474974
74 974
974
974

Notes
Notes to the
toyear
For the Financial
theended
FinancialStatements
Statements
31 March 2020
For the
For25.the
25.year
yearended
ended
INTEREST
INTEREST PAID 31
31March
PAID March2020
2020
25.
25.
25. INTEREST
INTEREST
25.INTEREST PAID
PAID
INTERESTPAID
PAID
25.25.
25. INTEREST
INTEREST
INTEREST PAIDPAID
PAID
GROUP
GROUP & & COMPANY
GROUP
GROUP
GROUP& &&COMPANY
COMPANY
COMPANY
COMPANY
Figures
Figures in in Rand
Rand thousand
thousand 2020 2020 2019 2019
Figures
Figures ininRand
Randthousand
thousand 2020 2020
2020 2019 2019
2019
Amount
Amount recognised
recognised in in profit or loss (2 872) (4 004)
Amount recognised ininprofit
profit or
ororloss
loss (2
(2(2872)
872) (4
Amount
Amountrecognised
recognisedin profit
profitor loss
loss (2 872)
872) (4(4004)
004)
004)
Interest
Interest on on post-retirement
post-retirement medical
medical aid aid 2 832 2 832 3 983
Interest
Interest on
Intereston post-retirement
onpost-retirement medical
post-retirementmedical
medicalaidaid
aid 222832
832
832 333983
983
983
Finance
Finance costscosts (lease
(lease Liability)
Liability) (158 (158
554) 554) -- -
Finance
Finance costs
Financecosts (lease
costs(lease Liability)
(leaseLiability)
Liability) (158
(158 554)
(158554)554) --
(158
(158 594)
594) (21)
(158
(158 594)
(158594)
594) (21)
(21)
26. 26. TAX
TAX PAID
PAID (21)
26.
26. TAX
26.TAX PAID
TAXPAID
PAID
26. 26. TAX
TAX PAID
PAID
26.
26.
26. TAX
TAX
26.TAX PAID
PAID
TAXPAID
PAID GROUP & COMPANY
GROUP &
&&COMPANY
26.26.
26. TAX
TAXTAX PAID
PAID
PAID GROUP
GROUP
GROUP& COMPANY
COMPANY
COMPANY
Figures
Figures in in Rand thousand 2020 GROUP GROUP & COMPANY 2019
Figures
Figures ininRand
Figuresin Rand
Rand
thousand
thousand
Randthousand
thousand
2020
2020
2020
2020 GROUP
GROUP
GROUP&
&
&&COMPANY
COMPANY 2019
2019
COMPANY 2019
COMPANY 2019
Balance
Figures
Balance at atRand
in beginning
beginning of the
thousand
of year 162020
188 122019
687
Figures
Balance
Figures
Balance
Figures
Balance
in
at
in
at
Figuresin
Rand
at
in beginning
Rand
beginning
Rand
beginning
Rand ofofthe
thousand
thousand
of
thousand
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the
year
year
theyear
year 2020 16
2020 16
16 16
188
188
188
2020
188
2020
2019
2019 12
12
12
687
687
687
2019
12 687
2019
Correction
Balance
Correction
Balance at of of prior
atprior
beginning period
period error
oferror
the year (9 (9
16
260) 260)
188 12- 687-
Balance
Balance atatbeginning
Correction
Correction
Balanceat
Correction ofbeginning
of prior
beginning
ofprior
of
ofofthe
period
priorperiod
beginning of
period
year
error
the year
error
the
the year
error
year
16
(9
16
(9
16
188
260)
188
16260)
(9 188
260)
188
12
12
12
687
687
12687
687-- -
Correction
Correction
Current oftax of
forprior
prior the period
period
yearerrorerror
recognised in profit or loss (9 (9 260)
260)
(52 399) (47 -483)-
-
Correction
Current tax
Correction
Correction of
for
ofofprior
the
prior
prior period
year
period
period error
recognised
error
error in
ininprofit or
ororloss (9
(52 260)
399)
(9(9260)
260) (47 483) -
Current
Current tax
Currenttax for
taxfor the
forthe year
theyear recognised
yearrecognised
recognisedin profit
profit
profitor loss
loss
loss (52
(52 399)
(52399)399) (47
(47 483)-
483)
(47483)
Current
Current tax tax the
for for the
year year recognised
recognised in in profit
profit or or loss
loss (52 (52 399)
399) (47 (47
483) 483)
Tax Tax
Current recovered
tax
recovered
Current tax for the
from from
year
grant grant
fundsfunds
recognised ininprofit
profit ororloss
loss (52 4 518
399)
44 399)
518 (47 3 303
483)
33483)
303
Current
Tax
Tax taxfor
recovered forthe
theyear
from yearrecognised
grant recognised
funds in profitor loss (52
(52 399)
518 (47
(47 483)
303
Taxrecovered
recoveredfrom fromgrant
grantfunds
funds 44518 518 33303
303
Less
Tax Less
Tax Balance
recovered
Balance
recovered at at
end
from end
from
of of
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5184(953)
518 (16 (163188)
33188)
303 303
Less
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recovered
Balance
Balanceat
Taxrecovered
Lessrecovered atatend
from
end
from
from ofofthe
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endof the
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thefunds
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44(953)
518
518
4(953)
518 (16
(16 188)
303
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(16 3303
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303
LessLess Balance
Balance at at
end end
of of
the the
year year 143143 (39 (39(953)
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Less
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LessBalance at
Balanceatatendend of the
endofofthe year
theyear
year 143
143 (39
(39
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(16 188)
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(39 (39 413)
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27. FINANCIAL INSTRUMENTS (39
(39 413)
(39413) 413) (47
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27.
27. FINANCIAL
FINANCIAL INSTRUMENTS
INSTRUMENTS
27.
27.FINANCIAL
INSTRUMENTS
27.
27. FINANCIAL
27. FINANCIAL
INSTRUMENTS
INSTRUMENTS
27.27.
27. 27.
27.
27. FINANCIAL
FINANCIAL
FINANCIAL
FINANCIAL
FINANCIAL
FINANCIAL
Financial INSTRUMENTS
INSTRUMENTS
INSTRUMENTS
INSTRUMENTS
INSTRUMENTS
INSTRUMENTS
Instruments categories
Financial
Financial Instruments
categories
Financial
FinancialInstruments
categories
Financial
categories
categories
Financial
Financial
Financial Instrumentscategories
Instruments
Instruments
FinancialInstruments categories
categories
categories
categories
GROUP GROUP& & COMPANY
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111 466
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668 5291 668 529
529 83
83 025 83 025
025
1 668
668 529
529 83
83 025
025
Exposure
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the beginning of the year. Therefore, a 25 percent weakening of the Rand against the following curren-
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The
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131
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The randhas
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withan
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ginning to
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31 March
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Since
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andinterest
interestcash
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flows.
Tradeand
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otherreceivables/payables
receivables/payablesincluding
includinggroup
groupbalances
balances
For receivables/payables
For receivables/payables with
with aa remaining
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132 the
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fair
Since the beginning of the year the interest rate has decreased by 300 basis points with more decreases expected
in the future albeit small. Therefore, a further decrease of 100 basis points in interest rates would have increased or
decreased profit or loss by R15m (2019– R9.8m) with all other variables held constant on the balances of financial
instruments, whilst the actuarial valuations of the post retirement obligation impact has been incorporated in the
note on Employee Benefits.
Fair values versus carrying amounts

The Group and Company carrying amounts for financial assets and liabilities approximate the fair values of the
respective financial instruments at year end.
Estimation of fair values

The following summarises the major methods and assumptions used in estimating the fair values of financial
instruments reflected in the table.
Interest bearing loans

Fair value calculated based on discounted expected future principal and interest cash flows.
Trade and other receivables/payables including group balances

For receivables/payables with a remaining life of less than one year, the notional amount is deemed to reflect the
fair value. All other receivables/payables are discounted to determine the fair value.
Non-derivative financial assets and liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal
and interest cash flows, discounted at the market rate of interest at the reporting date.
Interest rates used for determining fair value

The interest rates used to discount estimated cash flows, when applicable, are based on prime rates at the reporting
date plus an adequate credit spread.
Fair value hierarchy

At 31 March 2020, the Group did not have financial instruments carried at fair value, by valuation method, requiring
the following fair value hierarchy classification:
Head • Level
Office1 – quoted prices (unadjusted) in active markets for identical
Telephone: 011assets
471or4400
liabilities.
• Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability,
Sender Technology
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Radiokop, 2040
28. FINANCIAL RISK MANAGEMENT
00004444 117744 111100 ::eennoohhppeelE-mail: leeTT support@sentech.co.za eeccfififfO
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INTEGRATED ANNUAL
INTEGRATED ANNUAL REPORT
REPORT 2020
2020
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the Group’s customer base, including the default risk of the industry and country 6600XXin gga aBB eetcustomers
which
taavviirrPP
operate, has less of an influence on credit risk. There is concentration of credit risk in a00 440022customer,
single ,weeddyyeenas
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than fifty percent of the Group’s revenue comes from this customer. The customer is supported by Government to
ensure that it meets its obligations when they fall due. Therefore, SENTECH believes that the credit risk exposure is
mitigated by the fact that the customer has been settling its account on a timely basis in the past. This situation will
continue to be monitored to ensure that mitigating factors are in place to deal with any eventualities.
133
The Accounting Authority has established a credit policy under which each new customer is analysed individually
for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. Customers
that fail to meet the Group’s benchmark creditworthiness may transact with the Group only on a prepaid basis.
Cash and cash equivalents

Reputable financial institutions are used for investing and cash handling purposes.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have enough liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Group’s reputation. Typically, the Group ensures that it has enough cash on demand to meet
expected operational expenses for a period of 60 days, including the servicing of financial obligations; this excludes
the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
Market risk
Market
The Group risk is the risk
is exposed that
to to changes
currency riskriskin purchases
on market prices,
that such
are as foreign exchange
denominated in in rates
a currency andthan
other interest rates will affect the
thethe
respective
The Group is exposed currency on purchases that are denominated a currency other than respective
Group’s income of the value of its holdings of financial instruments. The objective of market risk management is to
presentation
presentationcurrency of the Group. The currencies in which these transactions are primarily denominated are,
manage and currency of the risk
control market Group. The currencies
exposures in which these
within acceptable transactions
parameters, areoptimising
while primarily denominated
the return. are,
Japanese YenYen
Japanese (JPY), Swedish
(JPY), Krona
Swedish (SEK),
Krona British
(SEK), Pound
British (GBP),
Pound Swiss
(GBP), Franc
Swiss (CHF),
Franc United
(CHF), States
United Dollar
States (USD)
Dollar and
(USD) Euro
and Euro
(EUR).
Currency
(EUR). risk
The Group is exposed to currency risk on purchases that are denominated in a currency other than the respective
TheTheGroup
Group does
doesnotnot
hedge
hedgeforeign purchases and sales but, where possible, matches foreign currency denominated
presentation currency of foreign purchases
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of Group.
the This
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and
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derivatives
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entered. TheGroup’s
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is kept anan
acceptable level
acceptable byby
level buying
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selling currencies
foreign currencies
(EUR).
at at
spot rates
spot when
rates when necessary
necessaryto to
address short-term
address imbalances.
short-term imbalances.
The Group does not hedge foreign purchases and sales but, where possible, matches foreign currency denominated
Interest
cash rate riskrisk
inflows
Interest rate and outflows through the underlying operations of the Group. This provides an economic hedge and
no derivatives are entered. The Group’s net exposure is kept at an acceptable level by buying or rates.
related selling foreign
related rates.
currencies at spot rates when necessary to address short-term imbalances.
Within group entities, inter-group financing is also used as it is cheaper and subject to minimal interest rate risk. Certain
Within group entities, inter-group financing is also used as it is cheaper and subject to minimal interest rate risk. Certain
long-term
long-term
Interest borrowings
risk areare
borrowings
rate entered a fixed
entered interest
a fixed rates
interest if the
rates rates
if the offered
rates areare
offered favourable to to
favourable thethe
Group.
Group.
The Group addresses its interest rate risk by ensuring that all borrowings and investments are at market related
rates. Within group entities,
00inter-group
44 174 11financing
0 :enoishp also
eleused
T as it is cheaper and subject to minimal ecfifinterest
O darateeH
risk. Certain long-term borrowings are entered a fixed interest rates if the rates offered are favourable to the Group.
Capital management
Capital management
5954 174 11 72+ :lanoitanretnI
Capital management teertS evatcO
One of of
One thethe
key focus areas of ofthethe
Accounting Authority is the optimal and most efficient use of of
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One of thekey keyfocusfocus areas
areas Accounting
of the Accounting Authority is the
Authority optimal and
is the optimal most efficient
and mostuse efficient Group’s
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objective of the
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management strategy
strategy is to
is ensure
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that maintains
it
The primary objective of the Group’s capital management strategy is to ensure that it maintains healthy capital ratios maintains healthy capital
healthy capitalratios in
ratios
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in to to
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core
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Octave
OctaveStreet Street International:
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Radiokop,
Radiokop,2040 2040
E-mail:
E-mail:support@sentech.co.za
The core
The coredebt
debtcomponents
components of the
of Group
the Group are as
are follows:
as follows:
Postal
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www.sentech.co.za
Private 00220022TTRROOPPEERRLLAAUUNNNNAADDEETA
Bag
Private Bag X06 X06 TARRGGEETN
TNI I
Honeydew,
Figures
Honeydew,
Figuresin in
Rand 2040
Rand thousand
2040
thousand 20202020 20192019
134
Borrowings
Borrowings
SENTECH INTEGRATED- REPORT
- - -
2019/20
cost
The of
cost capital
of
Group’s
programmes. is limited.
capital
aimis limited.
is Group
The The isphilosophy
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to ensure that itinisfunds
philosophy
restricted therefore
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actively
maintenance
of debt fundingapply
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apply
and capital
excess
growth
accordingly oftooptimising
capital
the growing
to
its and
growing
core maintaining
of and the
maintaining
business
the the
usingaverage
weighted internally
core business
core and
business using
and government
using government funding
funding for significant
for mandated
significant mandated projects.
projects.
generated funds, whilst using government grant funding for expansion capital expenditure requirements
cost of capital is limited. The philosophy is therefore to actively apply excess capital to growing and maintaining the
andcore business and using government
government-initiated funding for
programmes. Thesignificant
Group ismandated
restrictedprojects.
in the use of debt funding and accordingly
the optimising of the weighted average cost of capital is limited. The philosophy is therefore to actively
apply
Notesexcess
to capital
the to growing
Financial and maintaining the core business and using government funding for
Statements
The core
The debt
core components
debt components of of
thethe
Group areare
Group as as
follows:
follows:
significant mandated projects.
The core debt components of the Group are as follows:
The core debt components of the Group are as follows: 2020
The core debt components
Figures in in
Figures Rand
Rand thousand of the Group are as follows:
thousand 2020 2019
2019
Figures in Rand thousand 2020
- - 2019
- -
Borrowings
Borrowings
Borrowings - -
Post-retirement
Post-retirementmedical benefits
medical obligation
benefits obligation 1111
434434 2525
984984
Post-retirement medical benefits obligation 11 434 25 984
Notes
Notestoto
the Financial
the Statements
Financial Statements 1111
434434 2525
984984
ForFor
the year
the ended
year 3131
ended March 2020
March 2020 11 434 25 984
TheThepost-retirement
The post-retirement
medical
medical benefits
benefits
benefits obligation
obligation
obligation relates relates
torelates toto
employees employees
employees
that joined that
thatjoined
joined the
theGroup
Group before
before 2005.
2005.
135The post-retirement
medical benefits
benefitsobligation
obligationrelates to
relates employees
to employeesthat thatthe
joined Group
the
joined Group
thebefore
before
Group 2005.
2005.
beforeThis liability
This
2005.liability
This liability
This liability
This relates
liability
relates relatesto the
to thepast and
past andcertain
SENTECH
certain current
current employees
INTEGRATED employees who
REPORTwho are entitled
2019/20
are entitledto post-retirement
to post-retirement medical
medical
Theto
relates
relates the
tothe
to past
the and
past
past
post-retirementandcertain
and current
certain
certain
medical employees
current
current
benefits employees
obligation who
employeeswhoareare
relates entitled
who to entitled
are
toentitled
employeespost-retirement
to post-retirement
that joined medical
the Groupaid
to post-retirement
medical contribution
aid medical
contribution
before where
aid
2005. This contribution
where
liability
aidaid
contribution
theycontribution
remain in where
where
employmentthey
theyremain
remain
with in in
SENTECH employment
employment
until with
retirement. with SENTECH
SENTECH
This is a until
until
commitment retirement.
retirement.
that This
This
applies is is
for amedical
commitment
a commitment
where
they they
remain
relates remain
to thein past in employment
employment
and with
certain with
SENTECH
current SENTECH
until who
employees until
are retirement.
retirement. This to
entitled aThis is a commitment
is post-retirement
commitment thatcontribution
that applies
medical aid applies
for medicalforaid
medical
aid
where aid
that applies
that applies
contributionsforfor
contributions medical
whichmedical
are
which aidaid
contributions
adjusted
are contributions
by a
adjusted factor
by a which
that which
is
factor above
thatare areadjusted
CPI.
is adjusted
above CPI.byby a factor
a factorthat is is
that above
above CPI.
CPI.
contributions
they remainwhich are adjustedwith
in employment by a SENTECH
factor thatuntil
is above CPI.
retirement. This is a commitment that applies for medical aid
contributions which are adjusted by a factor that is above CPI.
Key capital
KeyKey structure
Shareholder
capital Funds –data:
structure
Shareholder
capital FundsEquity
–data:
structureEquity
data: 2 209 875
2 209 875
Key Keycapital structure
capital data:
structure data: 2020
2020 2019
2019
Earnings
Earnings before interest,
before taxtax
interest, and depreciation
and depreciation
Key capital structure data: 2020 2019
227 341
227 341
(EBITDA)
(EBITDA) 494 699
Shareholder Funds – Equity 2 295 494
576699 2 209 875
Shareholder Funds – Equity 2 2295
295 576
576 2 209 875
150
150 161 426
161 426
Interest expense
Interest expense 4 004
4 004
Earnings before interest, taxtax
and depreciation 150 494 699 227 341
-Earnings
Long before
term
- Long
interest,
borrowings
term borrowings
and depreciation 494 699
4040 227 341
(EBITDA)
(EBITDA) 2121
- Finance costs
- Finance (Lease
costs liability)
(Lease liability) 158 554
158 554 -
Interest expense
161 426
161 426 4 004-
4 004
Interest expense
- Post-retirement
- Post-retirement medical
medical
- Long term borrowings 2 832
240
832 3 983
321
983
- Long term borrowings 40 21
- Finance costs
- Finance (Lease
costs liability)
(Lease liability) 158 554
158 554 - -
- Post-retirement medical
- Post-retirement medical 2 832
2 832 3 983
3 983
The
TheThe
The
The Group
Group
Group
Group benchmarks
benchmarks
benchmarks
Group benchmarks
benchmarks the
thethe following
following
following
following
following capital
capital
capital
capital ratios:
ratios:
ratios:
ratios:
capital ratios:
Head
Debt
Debt
Office
to to
Equity ratio
Equity ratio
Telephone: 011 471 4400
Sender Technology Park (STP) Call Center: 0860 2020 736 832
2020 2019
2019
Octave
Target
Target
Street International:
Less than
Less
+27
40%
than 40%
11 471
Less 4595
than
Less 40%
than 40%
Radiokop,
The Group
Actual
The Group
2040
benchmarks
benchmarks thethe
following capital
following ratios:
capital ratios: 62.89% 4,64%
Actual 62.89% 4,64%
Debt to to
Debt Equity ratio
Equity ratio
Postal
Actual
Target Address www.sentech.co.za
Less 62.89%
than 40% Less4,64%
than 40%
Actual
EBITDA to to
Target
EBITDA Debt
Debt Less 62.89%
than 40% Less 4,64%
than 40%
Private
Target
Bag X06 Greater than 3 3 Greater than 3 3
Target Greater than Greater than
Honeydew, 204000040444171474111010:e:neonhophepleelTeT eceficffiOfOdadeaH
Actual
Actual 0,33
0,33 2,22
2,22 eH
EBITDA to to
EBITDA Debt 23
Debt 283863673706086080:re:rtentenC eCllallCaC )P)TPST(Sk( rkarPaPygyo
gloolnohnchecTeTrerdendenSeS
Actual
Target
Actual
EBITDA to to
Target
EBITDA 5 9 5 4
59cover
interest 4 174 11 72+ :lanoitanretInI
1 7
5cover
interest 4 1 1 7 2 + : l a n o i t a n r e t n Greater 0,33
than
Greater 3 3
0,33
than
02,22
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aza.zo.co.ch.chectentense@
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than Greater than
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than
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Actual s.w 3,06 56,78 ddA latsoP
56,78
Actual
Target
EBITDA INTEGRATED
INTEGRATEDANNUAL
to to
Target
EBITDA interest ANNUALREPORT
cover
interest REPORT2020
cover 2020 Greater
3,06
than 1010
Greater than
064006
Greater 04than
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135
Actual
Actual SENTECH INTEGRATED REPORT 3,06
2019/20
3,06 56,78
56,78
Target Greater than 3 Greater than 3
Actual
EBITDA to interest cover 0,33 2,22

Notes
Actualto the Financial Statements 3,06 56,78
For EBITDA
the year ended 31 March 2020
to interest cover
29. Actual
RELATED PARTIES 3,06 56,78
Related party transactions occurred between Sentech and the South African Broadcasting Corporation (SABC).
All transactions with government departments were on an arm’s length and therefore these are normal dealings.
Key management personnel have also been identified as related parties and their remuneration has been disclosed
below. There were no commitments to related parties for the year-ended 31 March 2020 and 31 March 2019.
Transactions with key management personnel

Loans to directors SENTECH INTEGRATED REPORT 2019/20
There were no loans issued to directors during the year or balances outstanding at the end of the year.
151
151

0402 ,pokoidaR
0402 ,wedyenoH
136
Notes
Notes to the
to the Financial
Statements
For For
the the
yearyear ended
ended 31 March
31 March 2020
2020
Key management compensation
management
Key Key management compensation
compensation
Directors
Directors emoluments
emoluments 2020
2020
Directors emoluments 2020
Figures in Rand Period of Retainer Performance bonus & Provident Meeting Medical Aid &
Basic salary Total
thousand service Fees allowances Fund Fees allowances
(months) R'000 R'000 R'000 R'000 R'000 R'000 R'000
Executive
M Booi 12 2987 0 0 428 0 194 3609
SK Mthethwa 12 2048 0 0 294 0 130 2472
TJ Leshope 12 2003 0 0 287 0 88 2378
Non-executive
AM Mello 3 0 87 0 0 40 0 127
L Mtimde 8 0 93 0 0 119 0 212
RJ Huntley 3 0 36 0 0 0 0 36
SB Malinga 12 0 173 0 0 205 0 378
MET Malaka 12 0 139 0 0 226 0 365
MM Manyama 12 0 139 0 0 153 0 292
PN Sibiya 12 0 139 0 0 146 0 285
MB Tsika 2 0 23 0 0 26 0 49
MS Tonjeni 2 0 23 0 0 23 0 46
MT Diko 2 0 23 0 0 23 0 46
10
7 038 875 0 1 009 961 412 294
0044 174 110
137 238 637 0680 :
138 SENTECH 153
SENTECH INTEGRATED REPORT 2019/20 5954 174 11 72+ :la
Notes
Forto
thethe
yearFinancial Statements
ended 31 March 2020
Directors emoluments
Directors emoluments2019
2019
Directors emoluments 2019
Figures in Rand Provident Medical Aid &

Period of service Basic salary Retainer Fees Performance bonus Fees Total
thousand Fund allowances
(months) R'000 R'000 R'000 R'000 R'000 R'000 R'000
Executive
M Booi 12 2853 0 1790 393 192 0 5228
SK Mthethwa 12 1956 0 752 270 118 0 3096
TJ Leshope 12 1803 0 709 249 117 0 2878
Non-executive
AM Mello 12 0 347 0 0 0 242 589
L Mtimde 12 0 139 0 0 0 229 368
NP Mbhele 7 0 81 0 0 0 110 191
RJ Huntley 12 0 139 0 0 0 131 270
LM Ndlovu 5 0 58 0 0 0 22 80
SB Malinga 12 0 139 0 0 0 225 364
MET Malaka 12 0 139 0 0 0 275 414
MM Manyama 5 0 58 0 0 0 48 106
PN Sibiya 5 0 58 0 0 0 78 136
6 612 1 158 3 250 912 427 601 3 13 719

0044 174 110
138 238 637 0680 :
SENTECH
INTEGRATED 2019/20
REPORT 2019/20
471 4400 5954 174 11 72+ :la
736 832
0139 154
27 11 471 4595 az.oc.hcetnes@trop
2
az.oc.hc
@sentech.co.za
.za Notes
Notestotothe
theFinancial
FinancialStatements
Statements
For the
For year
the ended
year ended March
3131 2020
March 2020
Other key management personnel
Key personnel are defined as per their positions below. Remuneration to key management personnel excluding directors’ emoluments above is:
2020
2020
2020
Figures in Rand Period of service Basic Performance Bonus and Other Medical Aid &
Position Provident Fund Total
thousand (months) Salary Allowances Allowances
Executive: Legal &

Z Adams 12 1740 - - 250 126 2116
Regulatory
Chief Human
KK Motlhabi 12 1725 - - 247 53 2025
Resources Officer
NO Nekhavhambe Executive: Finance 8 1198 - - 172 84 1454
IG Segaloe Chief Strategy Officer 12 1727 - - 248 120 2095
Chief Marketing &

MM Kgari 12 1626 - - 233 110 1969
Sales Officer
Chief Technology and

R Ramlal 12 1552 - - 223 120 1895
Information Officer
MT Finnis Executive: Operations 12 1552 - - 223 120 1895
11 120 - 1 596 733 13 449
0044 174 110

11 471 4400 238 637 0680 :
139
860140
736 832 SENTECH
INTEGRATED 2019/20
REPORT 2019/20
155
5954 174 11 72+ :la
Radiokop,
Honeydew,
Head Office
SenderHead
Notes to the Statements
Private Postal
Notes to Financial
OctaveSender
Octave
For the 31 March
Postal Address
Bag X06
Foryear
the ended
year ended 31 March
2020 2020
2040
2019
Technology
2019
2019
2040Street
Address
Radiokop, 2040
Private Bag X06

Honeydew, 2040
Figures in Rand Period of service Basic Performance Bonus and Other Provident Medical Aid &
Position Total
thousand (months) Salary Allowances Fund Allowances
Office Park (STP)

Z Adams Executive: Legal & Regulatory 12 1 659 417 229 118 2 423
KK Motlhabi Chief Human Resources Officer 12 1 647 516 227 49 2 439
NO Nekhavhambe Executive: Finance 12 1 725 533 238 147 2 643
E-mail:
IG Segaloe Chief Strategy Officer 12 1 649 506 227 109 2 491
Call Center:
MM Kgari Chief Marketing & Sales Officer 12 1 555 450 215
Street Technology Park (STP) International:

100 2 320
Chief Technology and
R Ramlal 9 1 125 345 155
+27
Information Officer 57 1 682
Telephone:
www.sentech.co.za
11
0860 736
MT Finnis Executive: Operations 7 1 402 419 195 125 2 141
Telephone: 011 471 4400
471
011832
www.sentech.co.za
10 762 3 186 1 486 705 16 139
Call Center: 0860 736

471 4400
4595832
0044 174 110
471 4400
140 156
SENTECH INTEGRATED REPORT 2019/20 238 637 0680 :
736 832
az
az.oc.hcetnes
NotesNotes
to the Financial
to the Statements
Financial Statements for the year ended 31 March 2020
For the Figures in Rand31
year ended thousand
March 2020
Notesand
Transactions toFigures in Rand
balances withthousand
related entities
REPORT 2020
Transactions and balances with related entities
Government grants
GovernmentTransactions
grants and balances with related entities
VariousVarious
transactions were
Government
transactions entered
enteredinto
grants
were intowith TheDepartment
with The Department of Telecommunications
of Telecommunications and Postaland Postal
Services andServices
Transactions
and National and
NationalTreasury balances
Treasury with with
withrespect
respect related entities
to government
to government grants.grants. Government
Government grants are
grants are accounted foraccounted for20in terms
in terms of IAS
of IAS Government
20 grants
Various
– Accounting
– Accounting transactions
for wereand
Government
for Government Grants entered
Grants into
andwith
Disclosure The Department
ofDisclosure
Government of Telecommunications
ofAssistance.
Government Assistance.and Postal Services and
Various transactions were entered
National Treasury into with
with respect The Department
to government of Telecommunications
grants. Government and Postal
grants are accounted for inServices
terms ofand
IAS National
20
Treasury with
Government respect
– grants
Accounting to government
forand
received Government
andother grants. Government
Grantsmovements
other related
related and Disclosure grants
ofbeen
havehave are
Governmentaccounted
disclosed for
Assistance.
in note 16. in terms of IAS 20 – Accounting
Government grants received movements been disclosed in note 16.
for Government Grants and Disclosure of Government Assistance. Government grants received and other related
movements
The Group is have beenby
Government
controlled disclosed
grants in note
The received
Governmentand 16.
otherThe Group
related
of South is controlled
movements
Africa that owns have byofThe
been Government
disclosed in note of
16.South Africa that owns
The Group
100% is controlled by shares
The Government of South Africa that100%
owns the Company’s
100% of theshares through
Company’s shares
The Department of Telecommunications and Postal Services. The following transactions occurred with entities The following
of the Company’s through The Department of Telecommunications and Postal Services.
through The Department
transactions occurred
The Group of Telecommunications
iswith entities
controlled bycontrolled and
by the
The Government Postal Services.
Department
of Africaof
South Services The following
Telecommunications
that owns 100% transactions
and Postal occurred
Services during
controlled by the Department of Telecommunications and Postal during the year:of the Company’s shares through
with entities
the year:controlled by the Department of Telecommunications and Postal Services during
The Department of Telecommunications and Postal Services. The following transactions occurred with entities the year:
NNA DETARGANNUAL
controlled
Sale of goods by the Department of Telecommunications and Postal Services during the year:
and services
Sale ofSale
goods and services
of goods and services
Sale of goods and services
ETN I
GROUP & COMPANY
Figures in Rand thousand 2020 GROUP & COMPANY

2019
SABC 744 580 714 227
BBI Figures in Rand thousand 2020
2 937 2019
1 452
USAASA SABC 42 000 744 580 - 714 227
0202 TROPER LAUINTEGRATED
BBI 789 517 2 937 715 679 1 452

USAASA 42 000 -
Services are rendered at market related rates. 789 517 715 679
Purchases of goods and services
Services
South African are rendered at market related rates.
Post Office - -
SITA Purchases of goods and services - -
ICASA South African Post Office 7 987 - 7 584 -
SITA 7 987 - 7 584 -
ICASA 7 987 7 584
Related party receivables
7 987 7 584
Related
South African party receivables
Post Office - -
SITA - -
South African Post Office - -
USAASA - -
Head
BBI
Office SITA Telephone:1 965
011 471 4400
-
1 452
-
Sender
ImpairmentTechnology
of related assets Park (STP)
USAASA Call Center:(85)
0860 736- 832 - -
Octave BBI
Street 1 965 1 452
South African Broadcasting Corporation International:
248 691+27 11 471 4595
-
Impairment of related assets (85) -
Radiokop, 2040
INTEGRATED ANNUAL
Department ofSouth
communications
E-mail: REPORT
African Broadcasting Corporation
2020
support@sentech.co.za 99
248 691
-
-
INTEGRATED
Postal Address ANNUAL
www.sentech.co.zaREPORT 2020
Department of communications 250 571 99 1 452

-
Private Bag X06 250 571 1 452
Honeydew,
An
Animpairment
2040 of R85
An impairment allowance of R85 440 relating to related parties was made. The Accounting Authority
allowance
impairment allowance of R85
440 440 relating
relating to related
to related parties
parties was was
made. Themade. The Accounting
Accounting Authority
Authority passed a passed a
resolution
resolution to
to wind-up
wind- Infohold Pty limited and InfoSat Pty Limited. The Accounting Authority, therefore, authorised
the settlement of the intercompany loans440
. relating to related parties was made. The Accounting Authority passed a
pport@sentech.co.za
nal: +27 11 471 4595
resolution to wind-up Infohold Pty limited and InfoSat Pty Limited. The Accounting Authority therefore
authorised the settlement of the intercompany loans
141

.za
For the 30.
year ended 31 March 2020
Notes toCOMMITMENTS
Notes the
toFinancial Statements
30.
For theFor
30.COMMITMENTS
year ended 31 March
COMMITMENTS 2020 2020
the
Capital year ended
commitments 31 March
30. COMMITMENTS
Capital commitments
Capital commitments
30. COMMITMENTS
Capital expenditure will be financed in line with the Company’s optimal capital structure, considering internal
Capital30. COMMITMENTS
commitments
cash resources available, borrowings and government grants optimal capital structure, considering internal
Capital expenditure will be financed
financedininline
linewith the Company’s
Capital Capital expenditure
expenditure willwill
be befinanced in line with
withthethe
Company’s optimal
Company’s capital capital
optimal structure,structure,
consideringconsidering
internal in-
CapitalCapital
commitments
cash
cashresources available,
commitments
resources available, borrowings
borrowings and
and government
government grants
grants
ternal cash resources available, borrowings and government grants
CapitalCapital
expenditure will be
expenditure willfinanced
be financedin line with
in line withthetheCompany’s
Company’s optimal capitalstructure,
optimal capital structure, considering
considering incash
internal
resources available, borrowings and government grants. GROUP & COMPANY
Figures in Rand thousand GROUP &&COMPANY
2020
GROUP COMPANY 2019
Figures ininRand
Requested
Figures per thousand
Rand corporate
thousand plan 2020 2020 2019
2019
Requested
Requested per
percorporate
- Sentech funded assets plan
corporate plan 150 000 150 000
- --Sentech funded
Government assets
grant funded
Sentech funded assets assets 150
52000
150 000
000 150
50000
150 817
000
- -Approved
Government
but grant
Government not funded
fundedassets
contracted
grant assets 52
52000
121 236
000 50
50817
140 101
817
Approved but
Contracted
Approved butnot
notcontracted
contracted 121
80236
121 764
236 140
51101
140 716
101
Contracted
Contracted 80
80764
764 51
51716
716
The authorised capital expenditure for property, plant and equipment is planned to occur in the next fi-
The authorised capital expenditure for property, plant and equipment is planned to occur in the next financial
nancialThe year. It will be
authorised financed
capital in line with
expenditure for the Company’s
property, plant andoptimal
equipment capital structure,
isisplanned to considering
occur in financial
the available
next financial
The authorised
year.
The It will
authorised capital
becapital expenditure
financed in line with
expenditure forthe
for property,
Company’s
property, plant
plant and
optimal
and equipment
capital
equipment structure,
is planned planned
considering
to occur in to occur
available
the next in the
internal next fi- year.
internalThe cash resources,
authorised capitalborrowings
expenditure and from government
for property, grants
plant andcapital
equipment received.
is planned to occur available
in the nextinternal
financialcash resources,
nancialItyear.
will
year.be Itfinanced
will
cash resources, be in line
financed
borrowings with inthe
line
andwith Company’s
with the
from government optimal
Company’s
grants structure,
optimal considering
capital structure, considering
received. structure, considering available internal available
year.ItItwill
borrowings willbe
befinanced
and financed
from
ininline
line withthe
government theCompany’s
Company’s
grants received.
optimal
optimalcapital
capital structure, considering available internal
internal cash
cash resources, borrowings and from government grants received.
cashresources,
31. CONTINGENT resources, borrowings
LIABILITIES
borrowingsAND and
andfrom government
governmentgrants
CONTINGENT
from grantsreceived.
ASSETS received.
31. CONTINGENT
31. CONTINGENT LIABILITIES LIABILITIES AND CONTINGENT
AND CONTINGENT ASSETS ASSETS
At the
31. CONTINGENT LIABILITIES AND CONTINGENT ASSETS to a previous employee claiming unfair labour prac-
date of this report, there was a matter relating
byAt
tice31. the date ofThe
SENTECH.
CONTINGENT
thismatter
report, isthere
LIABILITIES ANDwas nowwas a matter
awaiting
CONTINGENT
relating
a date fortoarbitration
a previousat employee claiming unfair
The Commission labour practice by
for Conciliation,
At the
31. date of this
CONTINGENT
SENTECH.
report,
TheLIABILITIES
there
is AND
matter (CCMA).
a matterASSETS
nowCONTINGENT
relating
ASSETS
awaiting a date
to a previous employee claiming unfair labour prac-
for arbitration at The Commission for Conciliation, Mediation and
Mediation and Arbitration
tice byArbitration
SENTECH.(CCMA). The matter is now awaiting a date for arbitration at The Commission for Conciliation,
Mediation and Arbitration (CCMA).
The potential
At the dateexposure
of this report,to SENTECH
there was aismatterlimited to the
relating to provisions applicable
a previous employee in terms
claiming unfairof the CCMA
labour practiceprocesses.
by SENTECH.
The potential exposure to SENTECH is limited to the provisions applicable in terms of the CCMA processes.
The matter is now awaiting a date for arbitration at The Commission for Conciliation, Mediation and Arbitration (CCMA).
TheAt Atthe
thedate
potential dateof
ofthis
thisreport,
exposure to there
report, therewas
SENTECH wasaais matter
limited
matter relating totoaprovisions
to the
relating aprevious
previousemployee claiming
applicable
employee unfair
unfairlabour
in terms
claiming of thepractice
labour CCMA by
bySENTECH.
practiceprocesses.
SENTECH.
32. LOSSES
The matter THROUGH
is now CRIMINAL
awaiting a date CONDUCT,
for arbitration IRREGULAR,
at The Commission FRUITLESS
for AND WASTEFUL
Conciliation, Mediation andEXPENDITURES
Arbitration (CCMA).
32. LOSSES THROUGH CRIMINAL CONDUCT, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURES
32.
The LOSSES
matter is THROUGH
now awaitingCRIMINAL
a date CONDUCT,
for arbitrationIRREGULAR,
at The FRUITLESS
Commission forAND WASTEFUL
Conciliation, EXPENDITURES
Mediation and Arbitration (CCMA).
The potential exposure to SENTECH is limited to the provisions applicable in terms of the CCMA processes.
32. LOSSES
32. THROUGH
LOSSES THROUGH CRIMINAL
CRIMINAL CONDUCT,
CONDUCT, IRREGULAR,
IRREGULAR, FRUITLESS
FRUITLESS AND AND WASTEFUL EXPENDITURES
The32.
All losses LOSSES
through
Allpotential THROUGH
criminal
exposure CRIMINAL
toto conduct
SENTECH CONDUCT,
is and any IRREGULAR,
irregular FRUITLESS
expenditure. ANDWASTEFUL
WASTEFUL EXPENDITURES
EXPENDITURES
All
The losses
lossesthrough
potential through
exposurecriminal
criminalconduct islimited
conduct
SENTECH and anytoto
and
limited the
theprovisions
irregular
any applicable
applicableininterms
expenditure.
irregular
provisions expenditure. termsofofthe
theCCMA
CCMAprocesses.
processes.
Head All
All losses Office
Alllosses through
through criminal
criminal conduct
conductand
criminalconduct any
and irregular
any Telephone:
expenditure.011 471 4400
expenditure.
irregular
Section 1losses
Section
Sectionof the
1
through
1of Public
the
of the Finance
Public Finance
Public
and
Managementany
Management
Finance
irregular
Management Act,
Act, No.
expenditure.
No.
1
Act, 1No.
of of 1999,
1999,
1 as as amended,
of amended,
1999, defines
as471
amended, defines
irregular irregular
expenditure
defines expenditure
irregular as expenditure
expenditure, as
Head
Sender
Head OfficeTechnology
Office Park (STP) Telephone:
Call Center:
Telephone: 011
0860
011 471 7364400
4400 832
as expenditure,
expenditure,
other
Section than
1the other
other than
unauthorisedthan 0 0 4 4
unauthorised
unauthorised
expenditure, 1 7 4 1 1 0 :
expenditure,
incurred in e
expenditure, n o h p e l
incurred
contravention e
incurred
ofTin
or in contravention
contravention
that is not of
incurred orinof
thatoristhat
not
accordance is not
incurred
with eac fi
infaccordance
O daeH
incurred
requirement
Section
Sender
Octave Section 1ofofthe
1Technology
of
Street thePublic
Public
Public Finance
Finance
Park
Finance Management
ManagementAct,
Management
(STP) Act, No.
Act, 11ofof11999,
No.
Call
No. of asasamended,
1999,
Center:
1999,
International: as 0860
amended, +27
defines
amended, 736
defines
11
irregular
defines
832
irregular
471
expenditure
irregular
expenditure
4595
asasexpenditure,
expenditure
expenditure,
Sender
in accordance
with
other Technology
with
of anyaapplicable
requirementa Park
requirement
of any
otherlegislation.
(STP)
of
23applicable any applicable
0legislation.
8 637incurred6expenditure,etCall
80inin:contravention Center:
legislation.
rcontravention
neCincurred
llaofofCororthat 0860 736
PTS(832
)incurred ink raccordance
aor
P that
ygoiswith
lo nh crequirement
eT redneS
otherthan
as expenditure, thanunauthorised thanexpenditure,
unauthorised unauthorised
expenditure, incurred in isisnot
notincurred
thatcontravention inofaccordance not
with aaincurred
requirement
Octave
Radiokop,
Octave Street
Street 2040 International: +27 11 471 4595
ofofany
in accordance
any applicable
with alegislation.
applicable 5954 174 of
requirement
legislation. 11any + :lanoInternational:
72applicable itlegislation.
anretnI +27GROUP 11 471 4595 teertS evatcO
& COMPANY
Radiokop,
Radiokop, Figures in2040
2040
Rand thousand E-mail: support@sentech.co.za GROUP2020&&COMPANY
COMPANY 0402 ,pok2019
GROUP oidaR
Postal Address
Figures in Rand thousand E-mail: support@sentech.co.za
www.sentech.co.za 2020 2019
Opening balance
Figures in Rand thousandaz.oc.hcetnes@troppuE-mail: s :liam-support@sentech.co.za
E 7 761
2020 15 557
2019
Postal
Address
Bag
Opening
Less:
PostalOpening X06
balance
expenditure
Address balance condoned www.sentech.co.za
az.oc.hcetwww.sentech.co.za
7 761
7 761 -
sserddA15l557
15 557
Private
Honeydew,
Private 0022002INTEGRATED
Bag
Less:
Less:
Add: 2 TTRRO
OPPEERR LLAAU
X06
2040
expenditure
Bag U N
NNNAA D
ANNUAL
condoned
DEEREPORT
TTAARRG
GEETTN
X06 identified in the current year
expenditure
Expenditure condoned II
N2020
nes.www
--
- 60X gaB 4e028
atsoP
tavirP
Honeydew,
Honeydew,Add: 2040
2040
Expenditure identified in the current year - 4 028
Add:
Less: Expenditure
Expenditure identified
removed by in the
the current
board year -- 0402 ,we(11 d4y824)
enoH
028
Less: Expenditure
Closing
Less: balance removed
Expenditure removedby bythe
theboard
board --
7 761 (11
(11824)
7824)
761
Closing
Closingbalance
balance 77761
761 77761
761
There There
There was no expenditure identified in the current year that relates to non-compliance with internal policies and processesand
was was
no no expenditure
expenditure identified
identified in in
the the current
current yearyear that
that relates
relates toto non-compliance
non-compliance with internal
internal policies
poli-
processes
cies and processes confirmed
confirmed by the reporting
by the 31period
reporting ending
period ending31application
March
31 2020. The The
application forsubmitted
condonement will be
confirmed
ThereThere
was was
There no by
no the reporting
expenditure
wasexpenditure
no expenditure
period
identified
identified ending
identifiedinin
inthe
the
the
March
current
current
current
2020.
year that The
thatrelates
yearyear that totoMarch 2020.
non-compliance
relates
relates to
non-compliance
application
fornon-compliance
condonement
with will be
withinternal
for and
policies
with
internal
condone-
to poli-
National
andprocesses
internal
policies processes
submitted
mentconfirmed
will to National
be submitted
Treasury. Treasury.
to Nationalending
Treasury.
cies and
confirmed by
processesbythe reporting
reportingperiod
confirmed
the by theending
period 31
31March
reporting 2020.
period
March 2020. The
Theapplication
ending 31 March
application for condonement
for2020. will
willbe
besubmitted
The application
condonement totoNational
for condone-
submitted National
mentTreasury.
will be
Treasury.submitted to National Treasury.
Material losses through fruitless and wasteful expenditures
143 Material
Section 1 of thethrough
Public Finance Management Act, Act No. 1 of 1999, as amended, defines fruitless and wasteful expenditure
Materiallosses
losses throughfruitless and
andwasteful
fruitlessSENTECHwasteful expenditures
INTEGRATED
expenditures REPORT 2019/20
which was
Section 1 of made in vain
the Public and would
Finance have been
Management
SENTECH avoided
Act, Act No.
INTEGRATED had reasonable
1 of care been exercised.
1999, as amended,
REPORT 2019/20 defines fruitless and wasteful expenditure
would
wouldhave been
beenavoided
haveSENTECH had
hadreasonable
INTEGRATED
avoided care
carebeen
reasonableREPORT exercised.
been2019/20
exercised. which was ma
The following material losses, through fruitless and wasteful expenditure have been identified as being reportable in terms
Closing
Less: balance removed by the board
Expenditure 7 761- (117824)
761
Closing
Closingbalance
balance 77761
761 77761
761
There was no expenditure identified in the current year that relates to non-compliance with internal policies and processes
confirmedno
There by the reporting period ending current
31 March 2020. The application for condonement will be submitted to National
Therewas was noexpenditure
expenditureidentified
identifiedininthe
the currentyear
yearthat
thatrelates
relatestotonon-compliance
non-compliancewith withinternal
internalpolicies
policiesand
andprocesses
processes
Notesconfirmed
to the
Treasury. Financial
by the reporting Statements
period
Notes toby the Financial period ending 31 March 2020. The application for condonement will be submitted toNational
ending 31 March 2020. The application for condonement will be submitted to
2020 Statements
confirmed the reporting National
For theTreasury.
year ended 31 March
Treasury.
MaterialMaterial
losses losses
through through fruitless
fruitless andand wasteful
wasteful expenditures
expenditures
Section Section
Material
1 of the1losses
of the Public
through
Public Finance
fruitless
Finance Management
and wasteful
Management Act, Act No.
Act1 No.
expenditures
Act, of 1999,
1 ofas1999,
amended, defines fruitless
as amended, and wasteful
defines expenditure
fruitless and
Material
Material losses
losses through
through fruitless
fruitless and
and wasteful
wasteful expenditures
expenditures
wastefulwhich
Section was
1 of
expendituremade
the in
Public vain
which and
Finance would
was have
Management
made been
in avoided
Act,
vain Act
andNo.had
1
wouldreasonable
of 1999,
haveas care been
amended,
been exercised.
defines
avoided fruitless
had and
reasonablewasteful
careexpenditure
been
Section
Section1 1ofof thethePublic Finance
Public Management
Finance Management Act, ActAct,
No. 1Actof 1999,
No. 1as ofamended,
1999, as defines
amended,fruitless and wasteful
defines fruitlessexpenditure
and wasteful
which
exercised.
which was
was made
made ininvain
vainand
and would
would have
have been
been avoided
avoided had
had reasonable
reasonable care
carebeen
been exercised.
exercised.
expenditure which was made in vain and would have been avoided had reasonable care
The following material losses, through fruitless and wasteful expenditure have been identified as being reportable in terms
been exercised.
of the materiality
The framework approved by the Minister ofexpenditure
Telecommunications and PostalasServices for the year under
Thefollowing
The following
The following
following material
material
material
material losses,
losses,
losses, through
through
through
losses, fruitless
through fruitless
fruitless and wasteful
andand
fruitless andwasteful
wasteful expenditure
wasteful have
havebeen
expenditure
expenditure been identified
have
identified
have been being
beingreportable
beenidentified
asidentified ininterms
as being
reportable
as being terms
reportable
review:
ofof
inthe
reportable materiality
thein
terms terms
of the of
materiality framework
materiality
framework approved
the materiality
framework
approved by the
theMinister
framework
approved
by ofofTelecommunications
approved
by the
Minister by the
Minister Minister
Telecommunications and
andofPostal Services
Telecommunications
of Telecommunications
Postal for
forthe
and Postal
Services yearand
theServices
year under
for the
under
review:
year under
Postal Services
review: forreview:
the year under review:
Balance at 1 April 164 123
Balance
Balance atat11April
April condoned 164
164 123
123
Less: Expenditure
- -
Less:
Less:Expenditure
Expenditurecondoned
condoned - -
4
- -
Add: Losses identified during the year 0
4 41
Add:
Add:Losses
Lossesidentified
identifiedduring
duringthe
theyear
year 4 00 41
41
Balance at 31 March
204 164
Balance
Balanceatat31
31March
March 204
204 164
164
The nature of these losses is primarily a result of interest charges on services rendered rates accounts, where invoices were
received
The nature
The
The late.
of these
nature
nature ofofof Such
losses
these
these interest
losses
losses is charges
isisisprimarily
primarily
primarilyhave
aresultdecreased
aresult
result
aaresult of of significantly
of interest
interest charges
charges from
on on prior period
services
services and this accounts,
rendered
rendered rates was
ratesdue to increased
accounts,
where invoices
The nature these losses primarily ofinterest
interest charges
charges on
onservices
servicesrendered
rendered rates
ratesaccounts,
accounts, where
where invoices
invoices were
were
engagements
were
wherereceivedreceived
invoices were
late. with
late.
Such municipalities
Such
received
interest interest
late. and
Such
charges automation
charges
have have
interest of invoices
decreased
charges
decreased and statements.
significantly
have
significantly from
decreased
from prior Other
prior avenues
period
significantly
period and such
and
this from
wasas due
this paying
was
priordue
to ontoaverage
periodincreased
increased
received late. Such interest charges have decreased significantly from prior period and this was due to increased
consumption
engagements
engagements
was due with will also
with be explored.
municipalities
municipalities and and automation of invoices and
andstatements. Other avenues andsuch state-
as paying on
and this
engagements to
with increased
municipalities andautomation
engagements
automation ofofinvoices
with invoicesandandstatements.
municipalities statements. Other
Otheravenues
automation of such
avenues suchasaspaying
invoices payingononaverage
average
average
ments.consumptionconsumption
will will also be on
explored.
Other avenues
consumption willalso
such
also bebeexplored.
as paying
explored. average consumption will also be explored.
33. BORROWING
33. BORROWING LIMITS LIMITS
In terms of the company’s Memorandum of Incorporation, the Accounting Authority shall not have the power to
In terms of the company’s Memorandum of Incorporation, the Accounting Authority shall not have the
borrow without the prior approval of the Executive Authority and the Minister of Finance. The company has an
power approved
to borrowborrowing
without limit
the prior approval of the Executive Authority and the Minister of Finance. The
of R3m.
company has an approved borrowing limit of R3m.
34. GOING CONCERN
34. GOING CONCERN
The Accounting Authority
0044 has 174reviewed
110 :ethe hpeleTplan and prepared a cash flow forecastetherein.
nocorporate cfifO d The aecorporate
H
The Accounting Authority
plan concludes that has
the reviewed
Company the
has corporate
through plan
several and prepared
austerity a
measurescash flow
improved forecast
the therein.
profitability The and cash
003
ability2to
0084a44satisfactory
6
43 117740 118
6 110level.
0:re : enn onohehcorporate
thas p
Cpeellle laeTC )PTS(onkrthe ygoloneh
aPcompany’s cccfie
fifTfO
eability O redgenerate
ddaaneeeHHS cash
Head
corporate planOffice
generating concludes that the4Company The through TTelephone:
plan is premised
several 011
austerity 471 4400
measures improved to profit-
the
and the 595422313funds
cashadditional
ability Sender
and generating 87846ability
6313that
717070to
6268+8
havea00 l:ar:renetotnrequested
:(STP)
been
satisfactory nieteaCCnrllevel.
llealatCnCtoIThe
complete )the
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corporate S(0860
(kkrollout
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made Srreevddann
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OS on
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review,
ability to generate
Octave
and
544
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11and
77441the
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111has
7additional
722+
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position, approved grant
been requested to complete
IInternational: funding, 0t4te0
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e4595
the Soeexistence
Accounting
DTT ekvvrollout
oaaitd
tccOaOR
Authority
is satisfied that the Group access to adequate resources to +27 in11its471
continue operational for the
will be made available.
azfuturec.hBased
.o2040 cetisnae ons@ this
tro review,
ppus and and
:liahas
m considering
-E the current financial00 440022basis
position, ,p
,poo kinkoopreparing
approvedid
idaaRR the
Radiokop,
foreseeable and going concern, continued to adopt the going concern
az.oc.hcetneasz@
financial statements. .otcro .hpcpeutns e:lsia .wmw-w E sserddA latsoP
INTEGRATED ANNUAL REPORT602020
to continue in its operational existence for the foreseeable
ued toPostal
adopt theAddress
going concern
aazz. o
.
basis occ. h
. hcceettnn
in preparing
eess.w.
and thethe
wwwww
future and
financial
is a going concern, and has contin-
statements.
www.sentech.co.za
s6ss0seX
errdg
ddadA
BAlealattatssvoo
irPP
P
INTEGRATED
The common
0
Private 2
Bag 0
carrier
2
X06 T R
status of
O P EANNUAL
R
SENTECH
L A U N N REPORT
A
current
D E T A R0642020
structural arrangements have created an environment in
0G E
0XX2gg
T N
aaBeBdeeytta
,w
I
eavnviorirPH
which the broadcasting market is dominated by few players. Majority of SENTECH’s revenue is earned from one
004created
The common carrier status of SENTECH and the current structural arrangements have 0 2 ,w eand y e n
environ- o H
P
Honeydew, 2040 402 ,wedyenoH
customer that has experienced a challenging year in terms of cash flow. The customer has in the current year
ment inbeen
which
ablethe broadcasting
to settle debt that market
was owingis dominated byrelief
post receipt of few funds
players.
fromMajority
NationalofTreasury.
SENTECH’s revenue
The entity is that
believes
earnedthe
from one customer
customer that has
will continue experienced
to settle a challenging
the outstanding debt as year
it hasinadhered
terms oftocash flow. The of
the provisions customer
the repayment
agreement.
has in the currentManagement
year been abletaketocognizance
settle debtof the
thatrisk
wasposed by continued
owing post receiptoverofreliance on onefrom
relief funds customer and as such
National
hasThe
Treasury. embarked on a diversification
entity believes strategy towill
that the customer reduce over reliance
continue on one
to settle the customer.
outstanding debt as it has ad-
hered to the provisions of the repayment agreement. Management take cognizance of the risk posed by
Management
continued take cognisance
over reliance of the impact
on one customer and asofsuch
the COVID-19 pandemic
has embarked on aon the business. The
diversification occurrence
strategy of COVID-19
to reduce
has presented business
over reliance on one customer. challenges that potentially impact on the going concern assumptions. It has also afforded
the business an opportunity to re assess its business model and its cost structure to evaluate where cost savings that
could be realized. The business has also employed various mechanisms to deal with the impact of COVID-19 on the
SENTECH
business including cost containment INTEGRATED
measures REPORT
on energy costs, 2019/20
maintenance, travel costs, employment costs and
It has also afforded the business an opportunity to re assess its business model and its cost structure to
evaluate where cost savings that could be realized. The business has also employed various mechanisms
to deal with the impact of COVID-19 on the business including cost containment measures on energy
costs, maintenance, travel costs, employment costs and consulting costs. The reassessment of these costs
NotesintoSENTECH
has resulted the Financial Statements
being able to maintain a profit and thus contributing to the strength of the state-
ment For
of financial
the yearposition.
ended 31 March 2020
The costs savings

consulting alsoThe
costs. ensure that cashofisthese
reassessment retained
costs in
hasthe business
resulted which could
in SENTECH being be
ableinvested for better
to maintain a profitre-
and thus
turns. contributing
Debtors pose to athe
significant
strength ofrisk
thetostatement
the business and the
of financial risk has become pronounced with COVID-19.
position.
To mitigate the risk the entity has undertaken to providing payment relief for customers for a time with
paymentThe costs savings
expected to also ensure
be paid thatThis
later. cashensure
is retained in the business
customer which
retention andcould be invested
customer for better thus
sustainability returns.
alsoDebtors
pose a significant risk to the
contributing to SENTECH’s sustainability. business and the risk has become pronounced with COVID-19. To mitigate the risk
the entity has undertaken to providing payment relief for customers for a time with payment expected to be paid
Considering the interventions that are to be implemented management is confident that the business will
later. This ensure customer retention and customer sustainability thus also contributing to SENTECH’s sustainability.
continue as a going concern.
Considering the interventions that are to be implemented management is confident that the business will continue
as a going concern.
35. EVENTS AFTER THE REPORTING PERIOD
35. EVENTS AFTER THE REPORTING PERIOD
The Accounting Authority is not aware of any other matters or circumstances arising since the end of the
financial
Theyear that would
Accounting impact
Authority is noton theofreported
aware any otherresults,
mattersother than those
or circumstances matters
arising sincealready
the enddisclosed in year
of the financial
these that
financial
wouldstatements.
impact on the reported results, other than those matters already disclosed in these financial statements.
The company
The company is in isgood
in good financial
financial positionto
position to withstand
withstand the
thecrisis of the
crisis COVID-19
of the virusvirus
COVID-19 and can continue
and its operations
can continue
for
36. the foreseeable
Correction of future.
prior period error
its operations for the foreseeable future.
36. CORRECTION
36. Correction OF PRIOR
of prior period error PREIOD ERROR
36.
36.1Correction
Property,ofplant
prior and
period error
equipment: Reassessment of useful lives
A reassessment
36.1 Property, plantofand
useful life of assetsReassessment
equipment: was conducted inofthe current
useful year. This gave rise to changes in the depreciation rates
lives
A reassessment
for various assets of useful
that life life of
wereoffully assets was conducted
depreciated in the
resulting ininpriorcurrent
period year.
errors This disclosure
gave rise to changes in the depreciation
A reassessment
36.1
ratesProperty,
for ofplant
varioususeful
and that
assets assets
equipment:
were was conducted
Reassessment
fully of resulting
depreciated theincurrent
useful lives prior year.in
period This gave
errors in
note.
rise
disclosure toThe reassessment
changes
note. in thewas
The reassessment
performed considering asset usage trends from previous years.
depreciation rates for
was performed various assets
considering that were
asset usage fully
trends from depreciated
previous years.resulting in prior period errors in disclo-
Head Office
A reassessment of useful life of assets was conducted in the current year.011
sure note. The reassessment was performed Telephone:
considering asset usage 471rise
Thistrends
gave 4400
from previous
to changes years.
in the depreciation rates
The impact on the statement of financial position and statement of profit and loss are illustrated below:
The impact
SenderThe on
impact
for various the
Technology
on statement
the statement
assets that were of
Parkfully financial
(STP)
of position
financial positionand
and
depreciated resulting statement
Callin Center:
statement of profit
prior period 0860 and
errors in736
of profit and loss are illustrated
832 note. The reassessment
loss
disclosureare illustrated below: was
below:
performed
Octave Street
IMPACT ONconsidering
STATEMENTasset
OF usage trends from previous years.
International: +27 11 471 4595 1-Apr-19
2020 2019
FINANCIAL POSITION
Radiokop, 2040
The impact on the statement ofNote SFP of profit and loss are SFP
financial position and statement illustrated below: SFP
ASSETS E-mail: support@sentech.co.za
Non-Current Assets
PostalIMPACT
Address
ON STATEMENT OF
www.sentech.co.za
2020 2019 1-Apr-19
FINANCIAL
Bag X06
Equity
POSITION
Property Plant and Equipment
Note
6
0044 174 110 :en

139,057
SFP
ohpeleT
118,483
SFP
105,572
SFP
ecfifO daeH
Honeydew,
ASSETS
Accumulated 2040
Profits (139,057) (118,483) (105,572)
Non-Current Assets
Property Plant
238 6637 0680 :retneC llaC
and Equipment
)PTS( kraP ygolonhceT redneS
IMPACT ON STATEMENT OF 139,057 118,483 105,572
2020 2019
PROFIT AND LOSS 5954 174 11 72+ :lanoitanretnI
Equity teertS evatcO
Note SP&L SP&L
Accumulated Profits (139,057) (118,483) 0402 ,pokoidaR
(105,572)
Depreciation 19 (20,573) (12,911)
IMPACT ON STATEMENT OF
2020 2019
PROFIT AND LOSS az.oc.hcetnes.www sserddA latsoP
The
36.2 Deferred Tax
Depreciation
Note
19 Note 13 was restated
prior period deferred tax as per
SP&L
(20,573)
SP&L
(12,911)
due to incorrect calculation
60X gaB etavirP
applied as a result of the prior period
relating to reassessment of useful life of assets as detailed on note 36.1, and the impact was as follows:
0402 ,wedyenoH
36.2 Deferred Tax
The prior ON
IMPACT period deferredOFtax
STATEMENT as per Note 13 was restated due to incorrect calculation applied as a result of the prior period
FINANCIAL
relating to reC
O
a ssessment of useful 2020 was as follows:
life of assets as detailed on note 36.1, and the impact 2019
POSITION
Note SFP SFP
ASSETS
Non-Current Assets
IMPACT
DeferredON
taxSTATEMENT OF FINANCIAL 13 52019
692
2020
POSITION
Note SFP SFP
ASSETS IMPACT ON S
-Current Assets 2020 2019 144
Non
PROFIT AND L
SENTECH
Note 13 INTEGRATED
SP&L REPORT 2019/20 SP&L 5 692 Deferred tax
36.2 Deferred Tax
36.2 Deferred Tax deferred tax as per Note 13 was restated due to incorrect calculation applied as a result of the prior period
The prior period
IMPACT ON STATEMENT OF FINANCIAL
36.2 Deferred
relating Tax
to reassessment 2020 was as follows:
of useful life of assets as detailed on note 36.1, and the impact 2019
POSITION
of the Tprior
he prior period
period deferred
relating tax as per Note Note
to reassessment 13useful
of was restated due to as
life of assets incorrect calculation
detailed
SFP on note applied as the
36.1, and aresult of
SFPthe prior
impact
period
ASSETS
was as follows:relating to reassessment of useful life of assets as detailed on note 36.1, and the impact was as follows:
Non-Current Assets
IMPACT
DeferredON
taxSTATEMENT OF FINANCIAL 13 52019
692
2020
POSITION
Note SFP SFP
ASSETS
Non-Current 2020 2019
PROFIT AND Assets
LOSS
Deferred tax Note 13 SP&L SP&L 5 692
Taxation (5 692)
2020 2019
PROFIT AND LOSS
Note SP&L SP&L
Taxation (5 692)

0402 ,pokoidaR
0402 ,wedyenoH
145
LIST OF ABBREVIATIONS
AGSA Auditor-General of South Africa

AGM Annual General Meeting
AI Artificial Intelligence
ARC Audit and Risk Committee
ASB Accounting Standards Board
ASO Analogue Switch Off
ATV Analogue Television
B-BBEE Broad-Based Black Economic Empowerment
BBI Broadband Infraco
CAPEX Capital Expenditure
CCMA The Commission for Conciliation, Mediation and Arbitration
CEO Chief Executive Officer
CFO Chief Financial Officer
CHF Swiss Franc
COO Chief Operations Officer
CPI Consumer Price Index
C&MS Content and Multimedia Services
CS Connectivity Services
CSI Corporate Social Investment
DAB Digital Audio Broadcast
DCDT Department of Communications and Digital Technologies
DoC Department of Communications
DPSA Department of Public Service and Administration
DTT Digital Terrestrial Television
DTH-S Direct to Home Satellite
DR Disaster Recovery
DSB Digital Sound Broadcasting
DTPS Department of Telecommunications and Postal Services
EBIT Earnings Before Interest and Tax
ECA Electronic Communications Act, Act No. 36 of 2005
EE Employment Equity
ECL Expected Credit Losses
EIA Environmental Impact Assessment
E&M Entertainment and Media
ERMCO Enterprise Risk Management Committee
ESD Enterprise and Supplier Development
EUR Euro
EXCO Executive Committee
FM Frequency Modulation
FVTOCI Fair Value Through Other Comprehensive Income
FVTPL Fair Value Through Profit and Loss
FY Financial Year
GRAP Generally Recognised Accounting Practice
HBBTV Hybrid Broadcasting Television
HR Human Resources
HRRNC Human Resources, Remuneration and Nominations Committee
IAF Internal Audit Function
IAS International Accounting Standards
IASB International Accounting Standards Board
IC Investment Committee
IFRS International Financial Reporting Standards
ICASA Independent Communications Authority of South Africa
146
LIST OF ABBREVIATIONS
ICT Information and Communications Technology

I-ECNS Individual Electronic Communications Network Service
I-ECS Individual Electronic Communications Service
IIA Institute of Internal Auditors
IIR Institute of Integrated Reporting
IMS Infrastructure Management Services
ISO International Standards Organisation
IOT Internet of Things
KPI Key Performance Indicator
LAN Local Area Network
MHz Megahertz
MIS Managed Infrastructure Services
MOI Memorandum of Incorporation
MTEF Medium Term Expenditure Framework
MW Medium Wave
NA Not Applicable
NAV Net Asset Value
NED Non-Executive Director
NPAT Net Profit After Tax
OAG Office of the Accountant-General
OC Operational Centre
OTT Over-The-Top
PAA Public Audit Act
PFMA Public Finance Management Act, Act No. 1 of 1999
PMO Project Management Office
PwC PricewaterhouseCoopers
QSE Qualifying Small Enterprises
R&I Research and Innovation
SENTECH Act SENTECH Act, Act No. 63 of 1996 as amended
TM Talent Management
TPRC Technology, Policy and Regulatory Co-ordination
TRIR Total Recordable Incident Rate
SABC South African Broadcasting Corporation
SAPO South African Post Office
SEC Social and Ethics Committee
SEED Socio-Economic Development
SEK Swedish Krona
SITA State Information Technology Agency
SOC State Owned Company
SOE State Owned Entity
SLA Service Level Agreement
SMME Small Medium Micro Enterprises
SW Short Wave
USD United States Dollar
USAASA Universal Service and Access Agency of South Africa
VAT Value Added Tax
VSAT Very Small Aperture Terminal
WANA Weighted Average Network Availability
YTD Year to Date
ZAR South African Rand
147
NOTES
148
NOTES
149
NOTES
150
NOTES
151
Radiokop, 2040
Private Bag X06
Honeydew, 2040 ISBN 978-1-928490-66-1
RP Number: 246 / 2020

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Sentech 2019-2020 Integrated Report

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INTEGRATED REPORT 2020

SENTECH INTEGRATED REPORT 2019/20

ABOUT THIS REPORT..................................................................................................................... 1

OUR STRATEGIC FOCUS................................................................................................................ 10

OUR OPERATING ENVIRONMENT................................................................................................. 14

HOW WE CREATE VALUE............................................................................................................... 30

DELIVERING ON OUR STRATEGY AND MANDATE....................................................................... 40

SENTECH INTEGRATED REPORT 2019/20

GROUP ANNUAL FINANCIAL STATEMENTS................................................................................ 83

LIST OF ABRREVIATIONS............................................................................................................. 146

SENTECH INTEGRATED REPORT 2019/20

Basis for preparing the Report

This report has been prepared in terms of:

• SENTECH Act, Act No. 63 of 1996 as amended

Scope and boundaries

Determination of Report content

Forward looking statement

3 SENTECH INTEGRATED REPORT 2019/20

5 SENTECH INTEGRATED REPORT 2019/20

6 SENTECH INTEGRATED REPORT 2019/20

Trend Analysis (R ‘mil)

FY2016 FY2017 FY2018 FY2019 FY2020

Trend Analysis (R ‘mil)

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

7 SENTECH INTEGRATED REPORT 2019/20

(200)- Continuing Business Dual Illumination Total Revenue Continuing % increase

(200) Continuing Business Dual Illumination Total Revenue Continuing % increase

FY2016 FY2017 FY2018 FY2019 FY2020

SENTECH INTEGRATED REPORT 2019/20 88

Network Geographical spread and National presence

SENTECH INTEGRATED REPORT 2019/20 10

Vision Mission Value Proposition

1) Sustainable Business 2) Enable digitally 3) Achieve excellent customer

SENTECH INTEGRATED REPORT 2019/20

• Design new innovation solutions for current and potential

SENTECH INTEGRATED REPORT 2019/20

• Drive down our cost of doing business

• Influence public policy

Strategic Pillars Strategic Initiatives Outcomes

SENTECH INTEGRATED REPORT 2019/20

SENTECH INTEGRATED REPORT 2019/20 14

COVID-19’s Impact on SENTECH SOC Ltd

Our Strategic Response

Policy and Regulatory Environment

1 National Treasury, South African Reserve Bank, PWC Report

High Demand Spectrum

Our Strategic Response

The changing media and entertainment landscape

– Significant consolidation between content players.

Television and Radio 2

Our strategic response

2 Source: PWC -Ovum Report, 2019

Our strategic response

• Expand the SENTECH Connect product portfolios to include Online solutions.

3 Source: PWC -Ovum Report, 2019

19 SENTECH INTEGRATED REPORT 2019/20

SENTECH INTEGRATED REPORT 2019/20 20

Going Concern Outlook

SENTECH INTEGRATED REPORT 2019/20 24

Dr Sandile Malinga Ms Tebogo Malaka King Madzikane II Thandisizwe Maureen Manyama

Chairperson: Social and Ethics Committee

26 SENTECH INTEGRATED REPORT 2019/20

Mr Mlamli Booi Rudzani Rasikhinya

Appointed Chief Executive Officer on the Appointed as Acting Chief Financial