DOLOMITE CAPITAL LIMITED - Notice of Restatement of the Annual Financial Statements and Auditor Appointment

Notice of Restatement of the Annual Financial Statements and Auditor Appointment

DOLOMITE CAPITAL LIMITED
(incorporated with limited liability in the Cayman Islands under
registration number 131853) (the Issuer)
Issuer Code: DLMC
(“the issuer” or “the company”)

Notice of Restatement of the Annual Financial Statements and
Auditor Appointment

Restatement

We refer to the issuer’s audited Annual Financial Statements for
year ended 31 December 2017, released on the Stock Exchange News
Service of the JSE Limited on 2 May 2018. In accordance with
section 7.6(b) of the JSE’s Debt Listings Requirements,
noteholders are advised of the issuer’s restatement of the prior
year’s Annual Financial Statements.
The Company classified the Notes as noteholders’ equity in its
31 December 2016 financial statements. In applying the guidance
of IAS 32, Financial Instrument – Presentation (“IAS 32”) the
Company considered the following:
A puttable financial instrument that includes a contractual
obligation for the Company to redeem that instrument for cash or
another financial asset is classified as equity if it meets all
of the following conditions:

-It entitles the holder to a pro rata share of the Company's net
 assets in the event of the Company's liquidation;
-It is in the class of instruments that is subordinate to all
other classes of instruments

-All financial instruments in the class of instruments that is
subordinate to all other classes of instruments have identical
features;

-Apart from the contractual obligation for the Company to redeem
the instrument for cash or another financial asset, the
instrument does not include any other features that would
require classification as a liability; and

-The total expected cash flows attributable to the instrument
over its life are based substantially on the profit or loss, the
change in the recognised net assets or the change in the fair
value of the recognised and unrecognised net assets of the
Company over the life of the instrument.


The Notes issued by the Company were deemed to meet the above
criteria and as such the Company classified the Notes as
Noteholders’  equity  in  the   31  December  2016  financial
statements.
In considering the recognition criteria under IAS 32 certain
judgements were applied by management. Management has revisited
those judgements in the year ended 31 December 2017 following
the issuance of the Series 12 note, specifically around whether
the   Notes  have   identical   features   and the  conclusions
surrounding other features that would require classification as
a financial liability.   Following this assessment, the Company
concluded that the Notes should be recognized as financial
liabilities rather than as equity instruments.
This was deemed to be a misinterpretation of some of the
circumstances that existed as at December 31, 2016, accordingly
the prior period comparatives have been restated.
The noteholders   are   not   deemed   to   be   prejudiced   by   the
restatement.

The correction has been applied retrospectively and statement of
 financial position as at the beginning of the earliest
 comparative period has been restated. Restatements have been
 made in the statement of financial position, statement of
 comprehensive income, statement of changes in shareholders’
 equity and statement of cash flows as detailed in the Annual
 Financial Statements.

The issuer’s auditors have thus included an emphasis of matter
 in respect of Comparative Information presented for the
 previous period leading to the restatement, however the audit
 opinion is not modified in respect of this matter.



Auditor Appointment

Pursuant to section 7.13 of the JSE Debt Listings Requirements,
noteholders are advised that Dolomite Capital Limited has
appointed    KPMG South Africa as a JSE accredited audit firm
effective    on 27 April 2018, with Joelene Pierce as the
individual     audit partner signing off on the December 2017
Financial     Statements. The issuer’s audit report will be
available    for inspection at the issuer’s and debt sponsor’s
registered   offices.



Johannesburg
11 May 2018

Debt Sponsor
The Standard Bank of South Africa Limited

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