Sharenet Sites 
Sharenet Sites
Correction of annual financial statements for the year ended 31 March 2016 - BINRA
The South African National Roads Agency SOC Limited
Incorporated in the Republic of South Africa
(Registration number 1998/009584/30)
Company code: BINRA
(“SANRAL” or the “Issuer”)
CORRECTION OF ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016
SANRAL advises its bondholders that the JSE Limited (“JSE”) found the Issuer in breach of the JSE
Listings Requirements (“Listings Requirements”) with respect to the annual financial statements for
the year ended 31 March 2016. The JSE’s findings are that SANRAL has transgressed paragraphs
(v) and (vii) of the General Principles of the Listings Requirements as well as paragraphs 5.2 and 5.5*
of the Debt Listings Requirements in that the Issuer did not comply with International Financial
Reporting Standards (“IFRS”) in its accounting for impairment on trade receivables and that it failed to
comply with IFRS paragraph 17 of International Accounting Standards (IAS) 1, Presentation of
Financial Statements in respect of the accounting treatment in instances where the Issuer departed
from the provisions of IFRS.
SANRAL disagrees with these findings based on the following:
1. The impairment assessment which was done on 31 March 2016, included all the information
that was available to SANRAL management. Due to the short duration since the
commencement of e-toll, the limited payment trends and the impact of external influences
were assessed and were included in management’s judgement of the impairment at the time.
2. IFRS states that hindsight should not be used when correcting amounts for a prior period.
Therefore, the timing of events is crucial in assessing the impairment of e-toll debtors. To this
end SANRAL could not recalculate/quantify the impairment without hindsight bias.
3. The Auditor-General of South Africa (AGSA), applying International Standards on Auditing
(ISA), concluded that management’s assessment of impairment was reasonable in all
material respects and issued an unqualified audit opinion on both the 2015 and 2016 annual
financial statements.
In a letter dated 26 October 2018, the JSE requested SANRAL to publish the information reflected in
the table below. The JSE took the view that it would be impracticable to require SANRAL to restate
its previously issued financial statements but that a more detailed ageing analysis of e-toll debtors
would provide investors with information for decision making purposes.
SANRAL maintains that this assessment is biased to hindsight and contrary to IAS 8 and therefore
does not accept the JSE’s decision in this regard.
* Paragraph 5.5 was renumbered to 5.7 in terms of Service Issue 26 of the Debt Listings Requirements.
Ageing of Toll 2017 -18 2016-17 2015-16 2014-15
Impairment
Days Gross Gross Gross Gross
% % % %
debtors debtors debtors debtors
Impairment Percentage Impairment Percentage Impairment Percentage Impairment Percentage
balance balance balance balance
impairment impairment impairment impairment
R’000 R’000 R’000 R’000
Current 736 156 - 0% 1 723 916 - 0% 730 666 - 0% 848 089 (26 093) 3%
31-60 152 030 (5 544) 4% 268 516 - 0% 204 904 - 0% 316 370 (9 733) 3%
61-90 149 314 (3 172) 2% 323 089 - 0% 47 155 - 0% 194 167 (5 974) 3%
91-120 167 025 (3 450) 2% 345 879 - 0% 657 244 (8 053) 1% 239 207 (18 067) 8%
121 to 365 1 278 461 (40 580) 3% 1 156 890 (35 867) 3% 1 163 890 (9 580) 1% 2 368 112 (67 388) 3%
1 to 2 years 1 650 877 (689 209) 42% 1 163 880 (694 145) 60% 2 846 900 (45 316) 2% 969 329 (15 315) 2%
2 to 3 years 2 691 900 (1 299 675) 48% 2 846 900 (1 913 659) 67% 969 329 (27 013) 3% - - 0%
+3 years 4 014 640 (4 014 640) 100% 969 329 (969 329) 100% - - 0% - - 0%
Total 10 840 403 (6 056 270) 56% 8 798 399 (3 613 000) 41% 6 620 088 (89 962) 1% 4 935 274 (142 570) 3%
Note: During the initial years of e-tolling, the limited data indicated positive responses by road users to government concessions, therefore the impairment
was low. The significant increase of the impairment in 2017 and 2018 is as a result of the prescription assumption on civil claims, which applies after 3 years.
Additionally, an allowance was made for possible further dispensation on the old debt.
Johannesburg
21 December 2018
Debt sponsor
One Capital
Date: 21/12/2018 12:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
