NOTES TO THE FINANCIAL STATEMENTS - NOTE 48


 

48. Restatement of comparatives

The following restatements and reclassifications which had an impact on the financial statements, were made:

Eskom Energie Manantali s.a (EEM)

During the prior year an interim operating and maintenance contract between EEM and SOGEM was approved until 30 June 2013 and the process to finalise an additional 10-year contract was in progress.

The authorities of the countries involved decided in January 2014 that there would be one more attempt by EEM and SOGEM to reach agreement on the 10-year operating and maintenance contract through mediation, and if this process was not successful by 30 April 2014 EEM will exit from the arrangement. Although significant progress was made, agreement on this contract could not be reached by the cut off date.

Based on the above, it is management’s determination that the assets of EEM constitute non-current assets held-for-sale in terms of IFRS 5. The operations have been classified as discontinued operations, and the comparatives in the income statement and statement of cash flows have been restated in terms of IFRS 5.

Reclassification of comparative figures

Certain comparative figures have been reclassified in order to improve disclosure. These include the government grant received for electrification which was reclassified from other income into other operating expenses and in the cash flow statement the foreign currency translation reserve is now shown separately apart from cash flows from operating, investing and financing activities.

The impact of the restatements is as follows:

        Group                 Company        
  Previously
reported
Rm
    Adjustments
Rm
    Restated
Rm
    Previously
reported
Rm
    Adjustments
Rm
    Restated
Rm
 
Income statements for the year ended                                  
31 March 2013                                  
Continuing operations                                  
Revenue 128 869     (94)     128 775     127 362         127 362  
Primary energy (60 748)         (60 748)     (60 748)         (60 748)  
Net employee benefit expense (23 599)     35     (23 564)     (20 776)         (20 776)  
Depreciation and amortisation expense (9 968)     8     (9 960)     (9 787)         (9 787)  
Net impairment loss (1 011)     (28)     (1 039)     (1 021)         (1 021)  
Other operating expenses (23 123)     84     (23 039)     (24 945)     23     (24 922)  
Operating profit before net fair value loss and net finance income 10 420     5     10 425     10 085     23     10 108  
Other income 1 155     (29)     1 126     2 275     (23)     2 252  
Net fair value loss on financial instruments excluding embedded derivatives (1 655)         (1 655)     (1 666)         (1 666)  
Net fair value loss on embedded derivatives (5 942)         (5 942)     (5 942)         (5 942)  
Operating profit before net finance income 3 978     (24)     3 954     4 752         4 752  
Net finance income 3 027     (24)     3 003     3 138         3 138  
Finance income 2 820     (24)     2 796     2 904         2 904  
Finance cost 207         207     234         234  
Share of profit of equity-accounted investees after tax 35         35              
Profit before tax 7 040     (48)     6 992     7 890         7 890  
Income tax (1 857)     1     (1 856)     (2 117)         (2 117)  
Profit for the year from continuing operations 5 183     (47)     5 136     5 773         5 773  
Discontinued operations                                  
Profit for the year from discontinued operations     47     47              
Profit for the year 5 183         5 183     5 773         5 773  

    Group     Company    
  Previously
reported
Rm
Adjustments
Rm
Restated
Rm
Previously
reported
Rm
Adjustments
Rm
Restated
Rm
 
Cash flow statements for the year ended              
31 March 2013              
Cash flows from operating activities              
Cash generated from operations 28 832 (48) 28 784 28 847 28 847  
Non-current assets held-for-sale 48 48  
Other net cash flows from operating activities (1 163) (1 163) (905) (905)  
Net cash from operating activities 27 669 27 669 27 942 27 942  
Cash flows from investing activities              
Acquisitions of property, plant and equipment (53 494) 49 (53 445) (53 742) (53 742)  
Other net cash flows from investing activities (4 914) (4 914) (4 365) (4 365)  
Net cash used in investing activities (58 408) 49 (58 359) (58 107) (58 107)  
Cash flows from financing activities              
Net cash from financing activities 21 784 21 784 21 600 21 600  
Net increase/(decrease) in cash and cash equivalents (8 955) 49 (8 906) (8 565) (8 565)  
Cash and cash equivalents at beginning of the year 19 450 19 450 18 395 18 395  
Foreign currency translation (49) (49)  
Cash and cash equivalents at beginning of the year attributable to non-current assets held-for-sale 125 125  
Cash and cash equivalents at end of the year 10 620 10 620 9 830 9 830