| Fri 29 Oct 2021, 16:00 | | Notice of availability of annual financial statements of guarantors - KAP |
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Notice of availability of annual financial statements of guarantors - KAP
KAP INDUSTRIAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1978/000181/06)
JSE alpha code: KAP
(“KAP”)
NOTICE OF AVAILABILITY OF ANNUAL FINANCIAL STATEMENTS OF GUARANTORS
Further to the announcement released on SENS on 20 August 2021 notifying debt holders of
the availability of KAP’s annual financial statements for the year ended 30 June 2021, debt
holders are now advised that the audited annual financial statements of the following
guarantors of KAP:
• KAP Automotive Proprietary Limited;
• Restonic Proprietary Limited;
• PG Bison Proprietary Limited;
• Safripol Proprietary Limited;
• Unitrans Passenger Proprietary Limited; and
• Unitrans Supply Chain Solutions Proprietary Limited,
are available for inspection at KAP’s registered office at 3rd Floor, Building 2, The Views,
Founders Hill Office Park, 18 Centenary Street, Modderfontein, Johannesburg, 1645.
The audit reports relating to the annual financial statements of the aforementioned guarantors
are unqualified.
The audit report relating to the annual financial statements of Unitrans Passenger Proprietary
Limited includes a reportable irregularity in terms of the Auditing Profession Act. Due to an
internal accounting practice, which has since been terminated, Unitrans Passenger
Proprietary Limited paid certain expenses on behalf of its chief executive officer on a routine
basis. Although these expenses were repaid in full to the company on a routine basis, this
resulted in the company inadvertently extending short-term loans, which is technically in
breach of the provisions of section 45 of the Companies Act and deemed unauthorised
financial assistance to a director. The declaration of personal financial interests by the chief
executive officer of Unitrans Passenger Proprietary Limited was furthermore not complete and
therefore in contravention of section 75 of the Companies Act. Both of the afore-mentioned
practices have been stopped following their discovery and appropriate remedial actions taken.
The annual financial statements of Unitrans Passenger Proprietary Limited have therefore
been restated to account for the following:
• After the financial year-end it was identified that the company had entered into certain
transactions over a number of years with companies of which a member of its chief
executive officer’s family is a director. These transactions were at arms-length and in the
normal course of the company’s business. This was however not disclosed in terms of
section 75 of the Companies Act and as such the 30 June 2020 related-party disclosure
note to the financial statements has been restated.
In the annual financial statements of Safripol Proprietary Limited the prior year figures for the
year ended 30 June 2020 have been restated to account for the following:
• It was identified that revenue from certain exports was recognised in the incorrect period
due to timing differences between when the goods were loaded for sale at the point of
dispatch compared to the date of lading. The cumulative impact on revenue recognised
for the 2019 and 2020 financial years was not considered material, however, the impact
on the June 2020 inventories and trade and other receivables balances were considered
material and required correction.
In the annual financial statements of KAP Automotive Proprietary Limited, Restonic
Proprietary Limited and Unitrans Passenger Proprietary Limited the prior year figures for the
years ended 30 June 2019 and 30 June 2020 have been restated to account for the following:
• During the 2021 financial year it was identified that bank overdrafts had been erroneously
offset against cash and cash equivalents in prior years. These companies do not have a
legally enforceable right to set off bank overdrafts and cash and cash equivalents, nor do
these companies have an intention to settle these accounts on a net basis. The error has
been corrected by restating each of the affected financial statement line items for prior
years.
29 October 2021
Debt Sponsor: Nedbank Corporate and Investment Bank, a division of Nedbank Limited
Date: 29-10-2021 04:00:00
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