THE SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LIMITED - Availability of the annual financial statements of the company

Availability of the annual financial statements of the company

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 “Company”)

AVAILABILITY OF THE ANNUAL FINANCIAL STATEMENTS OF THE COMPANY

SANRAL advises its bondholders that the annual financial statements of the Company for the year ended
31 March 2018 (“Annual Financial Statements”) is available for inspection during standard business
hours at the registered office of the Company at 48 Tambotie Avenue, Val de Grace, Pretoria, 0184, South
Africa.

The Annual Financial Statements, included in its Integrated Report 2018, are also available on the
Company’s website at
Volume 1:
http://www.nra.co.za/live/click.php?u=%2Fcontent%2FSANRAL_Integrated+Report+2018_Volume-1-29-
August-2018.pdf&o=Item%2B205

Volume 2:
https://www.nra.co.za/content/SANRAL_Integrated%20Report%202018_volume-2-FINAL-29-
August%202018.pdf


Bondholders are also advised that the audit report on the Annual Financial Statements is unqualified, with
no modifications applicable.

 Furthermore, the Company would like to advise its bondholders of the following restatements and reasons
 thereof to the preceding published annual financial statements:
    The Company has restated its 2017 annual financial statements because of the following:
(a) Minor toll assets discovered during asset verification at plazas operated by service providers and
    added to the asset register at a value of R1/R2/R3 for control purpose while awaiting valuation from
    the experts. Once the valuation was obtained, they were recognised at an appropriate value. This
    resulted in an increase in asset value by R17,4 million and a corresponding decrease in
    accumulated loss.
(b) Third party funds contributed for road construction, was erroneously recognised as other income,
    resulting in an understatement of the third party balance at year end. The correction thereof
    resulted in a R84,2 million decrease in accumulated loss.
(c) Payments for expenses incurred by the service providers was recognised twice resulting in an
    overstatement of expenses by R11,4 million. The correction of the error had an effect of reducing
    accumulated loss.
(d) One project relating to the Gauteng Freeway Improvement Project, was recognised as one asset
    as the service provider was still busy with cost reconciliation at the time of recognition. The detailed
    asset breakdown was provided in 2018, resulting in reallocation between asset categories and
    restatement of 2017.
(e) A building project was not recognised by use of component method for major component assets.
    The correction of the classification error resulted in a decrease in buildings of R53 million and an
    increase in computers and road network.
(f) An error in accounting for sale of investment property to a sister company was discovered and
    corrected in 2017. The correction resulted in an adjustment of R16 million in investment properties
    and accumulated losses.

1 October 2018

Debt Sponsor
One Capital

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