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Availability of Annual Financial Results
TRANSNET SOC Limited
Issuer Code: BITRA
(“TRANSNET” or “the Issuer”)
Availability of Annual Financial Results Announcement
In terms of section 7.6 of the JSE Debt Listings Requirements,
Noteholders are advised that the Annual Financial Statements for
Transnet for the year ended 31 March 2019, are available on the
Issuer’s website:
https://www.transnet.net/InvestorRelations/Pages/Annual-Results-
2019.aspx
Performance highlights
• Revenue increased by 1,6% to R74,1 billion
• EBITDA increased by 3,8% to R33,8 billion
• Profit for the year increased by 24,7% to R6,0 billion
• Cash generated from operations increased to R35,2 billion
• Gearing of 44,5% and cash interest cover at 2,9 times
Qualified audit opinion
Noteholders are advised that the Issuer’s audit report is
qualified. The qualification is specific to the completeness and
accuracy of the reported Irregular Expenditure, the reporting of
which is required by the Public Finance Management Act, 1999
(PFMA) of South Africa.
Irregular Expenditure is expenditure that was incurred in
contravention of procurement legislation, notwithstanding that
value was received.
The external auditors are of the view that the application by
Transnet of certain of the Preferential Procurement Regulations,
2017 relating to tender prequalification criteria was
inconsistent with the legislation, and therefore irregular. The
use of the tender prequalification criteria was aimed at
assisting Transnet to meet its obligations in terms of the
Competitive Supplier Development Programme prescribed by the
Department of Public Enterprises and to achieve supplier
development targets agreed to with the Shareholder.
Transnet ceased using the tender prequalification criteria in
June 2018 but the absence of control measures related to the
quantification of this specific category of expenditure (given
that this was not considered to be irregular) is the primary
matter giving rise to the qualified audit opinion.
The matter is more fully described in the Directors Report,
Notes 24 and 40 of the Annual Financial Statements, the audit
opinion of the Issuer’s external auditors, the short form press
advert and the Media Statement issued by the Issuer today.
The qualified opinion is not related to compliance with
International Financial Reporting Standards (IFRS) nor the
Companies Act of South Africa, 2008 and accordingly, has no
bearing on the financial strength and sustainability of Transnet
as depicted in the Annual Financial Statements. Transnet holds
the view that the qualified opinion will not result in any
negative action related to the debt book, and is satisfied with
the adoption of the going concern assumption in the preparation
of the Annual Financial Statements.
30 September 2019
Debt Sponsor
The Standard Bank of South Africa Limited
Date: 30/09/2019 09:00:00
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