| Thu 27 Aug 2026, 8:00 | | IN02 - Availability of 2026 Annual Financial Statements and Integrated Report |
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IN02 - Availability of 2026 Annual Financial Statements and Integrated Report
19 Fredman Drive, Sandown 2196
PO Box 784055, Sandton 2146, South Africa
Tel: +27 11 269 3000
Fax: +27 11 269 3116
www.idc.co.za
Industrial Development Corporation of South Africa Limited
Incorporated in the Republic of South Africa
Registration No. 1940/014201/06)
Issuer code: IN02
(the “IDC” or the “Issuer” or the “Group”)
Availability of 2026 Annual Financial Statements and Integrated Report
Pursuant to the JSE Limited (“JSE”) Debt and Specialist Securities Listings Requirements
(“DSS”), Noteholders are advised that the Issuer’s Annual Financial Statements (“AFS”) and
Integrated Report for the year ended 31 March 2026, have been made available on the
Issuer’s website and may be viewed or downloaded through the following link:
https://www.idc.co.za/integrated-report/ , and as well on the JSE Cloudlink at:
https://senspdf.jse.co.za/documents/2026/JSE/ISSB/IN02/IDCAFS2026.pdf
Deloitte & Touche and BDO, the Group’s independent statutory external auditors, have
expressed an unqualified audit opinion with no modifications on the Group AFS for the year
ended 31 March 2026.
Restatement of Previously Published Results
During the preparation of the Group's 2026 AFS, the Group restated the 2024 and 2025
statement of financial position and statement of changes in equity and 2025 statement of
cash flows as a result of material prior period error:
1.1. Investment in associates
During the preparation of the Group’s 2026 annual financial statements, management
identified that the mining rights of Adelaide Ruiters Mining and Exploration (Pty) Ltd had been
overstated in prior periods. The draft annual financial statements of the investee for the year
Industrial 28 February 2025 reflected a rights valuation
ended Development Corporation of South Africa Limited miningReg.No. 1940/014201/31 of R438 million, compared to
Directors: Serobe G T (Chairperson), Lekhethe M (CEO), Barnard R, Cohen T, Dames B, Dlodlo A, Mabuza B A, Makube Dr. T, Mothibeli Dr. K T,
Kriel A T, Orleyn Adv. N D B, Ramano T
Group Company Secretary: Kganedi M
R10.9 billion reported in the signed annual financial statements for the year ended 28 February
2024.
The previous valuation was determined on an in-situ basis and did not incorporate detailed
financial projections. Following the completion of a bankable feasibility study in 2024, the
mining rights were remeasured using a discounted cash flow methodology, resulting in a
revised valuation of R438 million.
As a result, the Group recognised an impairment loss of R2.6 billion, representing its 25%
shareholding in the investee. This has been accounted for as a correction of a prior period
error and has been restated retrospectively in accordance with IAS 8: Accounting Policies,
Changes in Accounting Estimates and Errors (IAS 8). Consequently, the investments in
associate and retained income in the statement of financial position have been restated for
the 2024 and 2025 financial years.
1.2. Investment Securities / Equity
A consolidation elimination entry was incorrectly recorded, resulting in the R3.2 billion
preference shares written off by IDC and held within Foskor (Pty) Ltd (Foskor) not being
eliminated. IDC had measured those preference shares at fair value through profit or loss. In
Foskor’s standalone records the same preference shares were recorded as share capital of
R4.2 billion. On consolidation, the elimination of Foskor’s share capital of R4.2 billion was
processed correctly, but the corresponding offsetting entry was incorrectly posted: only R1.0
billion was reversed against investment securities, leaving R3.2 billion of the write-off
uneliminated. As a result, both investment securities and retained income were understated
by R3.2 billion in the prior period.
1.3. Cash, loans and advances with third parties
IDC has been appointed by various third parties, primarily government departments, to
manage funds on their behalf. These funds are held in bank accounts separate from those of
IDC and may be used only for the purposes set out in the Memoranda of Agreement (“MoA”)
between IDC and the respective third parties. IDC administers the funds in line with the
instructions of the relevant sponsor or donor.
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During the current year’s audit, management and the external auditors reassessed the
applicable accounting standards relating to the treatment of third-party funds. This followed
the April 2022 guidance issued by the IFRS Interpretations Committee on demand deposits
with restrictions on use arising from a contract with a third party. Based on that guidance,
funds held on behalf of third parties are recognised as IDC cash because IDC has unrestricted
access to those funds. Management concluded that the revised accounting treatment is
appropriate and results in a more faithful representation of the transaction.
This has been treated as a correction of a prior-period error and restated retrospectively in
accordance with IAS 8. As a result, cash has been recognised in the statement of financial
position under cash held on behalf of third parties, with a corresponding liability recognised
under balances of third parties. Accordingly, loans and advances disbursed by IDC as agent
on behalf of third-party funds have also been recognised in the statement of financial position
under loans and advances on behalf of third parties, with a corresponding liability recognised
under balances of third parties. Interest earned on cash held on behalf of third parties and
on the related loans and advances is capitalised to these balances, with a corresponding
adjustment recognised in balances of third parties. The accounting treatment for these loans
and advances follows that of the related cash, as the cash is directly linked to the
disbursements and collections. This has been treated as a correction of a prior-period error
and restated retrospectively in accordance with IAS 8.
Noteholders are further advised that the audit report includes an emphasis of matter relating
to the restatement arising from material prior- period errors, and that the audit opinion remains
unmodified.
27 August 2026
Debt Sponsor
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Date: 27/08/2026 06:00:00
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