| Tue 31 Aug 2021, 16:30 | | Notice of availability of annual financial statements - BIESKM |
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Notice of availability of annual financial statements - BIESKM
Eskom Holdings SOC Limited
(Registration No. 2002/015527/30)
JSE alpha code: BIESKM
(“Eskom” or “the Group”)
NOTICE OF AVAILABILITY OF ANNUAL FINANCIAL STATEMENTS
Eskom hereby notifies its debt investors that it has publicly released its audited annual financial statements
(“AFS”) for the year ended 31 March 2021.
The auditors concluded that Eskom’s consolidated and separate financial statements present fairly, the
financial position of the group as at 31 March 2021, except for the qualification relating to irregular
expenditure which was not fully and accurately recorded as required in terms of the Public Finance
Management Act (PFMA), due to the inadequate systems to detect, record and appropriately disclose this
expenditure in the AFS.
In addition, the following matters were raised in the audit report and the auditors’ opinion was not modified in
respect of these matters:
• an emphasis of matter relating to:
o restatement of corresponding figures;
o the Medupi power station explosion on 8 August 2021; and
o estimated non-technical revenue losses due to meter tampering and bypasses, illegal connections to
the electricity network and illegal vending of electricity.
• a material uncertainty relating to the going concern status of Eskom.
• reportable irregularities relating to
o various irregularities reported in prior financial periods;
o awarding of a tender while there were irregularities in a contract previously awarded to a supplier;
o the extension of a fixed term contract in contravention of Eskom’s procedures; and
o non-compliance with the National Environment Management Act (NEMA).
The reportable irregularities have been reported to the Independent Regulatory Board of Auditors by
Eskom's auditors.
Restatements
The statements of financial position for the periods 31 March 2019 and 31 March 2020 as well as the income
statement and statement of comprehensive income for the period to 31 March 2020 have been restated as a
result of errors in the financial statements for the group at, and for the year ended 31 March 2021 as follows:
• pension benefits – the Eskom Pension and Provident Fund has been reclassified as a “defined benefit
fund”, with the only impact being the reallocation of income and expenses between profit and loss and
other comprehensive income; and
• trust fund valuations – Eskom’s contributions towards environmental rehabilitation trust funds were
previously measures at cost and have now been corrected to account for Eskom’s share of the fair value of
the trust funds.
Full details of the above restatements are set out in note 49 of the AFS.
The AFS, together with the audit report, are available on the Eskom website at www.eskom.co.za/IR2021 and
for inspection at Eskom’s registered office at 1 Maxwell Drive, Megawatt Park, Sunninghill, Johannesburg,
2000.
Johannesburg
31 August 2021
Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 31-08-2021 04:30:00
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