Integrated Report 2021
Exxaro Resources Limited
Annual Financial Statements 2021
The company statement of comprehensive income as well as the company statement of cash flows for the year ended 31 December 2020 have been restated.
Revenue is defined as the income arising during the course of an entity's ordinary activities. Previously, income including dividends and interest received from subsidiaries, associates and JVs was not included within revenue. As an investment holding company, not only would the income generated from services provided, but also from the investments and loans provided be considered to be income from ordinary activities. As a result, the comparative information has been restated to include: dividends received from subsidiaries; associates and JVs; as well as interest received on loans provided to subsidiaries; associates and JVs, as part of revenue. Due to this restatement a decision has been made to remove the operating activity sub-total from the company's statement of comprehensive income.
Due to the restatement in the company's statement of comprehensive income, the presentation of dividends received from subsidiaries, associates and JVs as investing activities in the statement of cash flows has been reconsidered. As operating activities are defined as the principal revenue producing activities, the statement of cash flows has been restated to present these dividends as operating activities and included as part of the cash generated by operations line item. Interest received on loans advanced to subsidiaries, associates and JVs continue to be presented as operating activities but have now been presented as part of the cash generated by operations line item.
The error did not have an impact on group.
The impact of the restatement was as follows:
| Company | |||
| Statement of comprehensive income | Previously presented Rm |
Adjustment Rm |
Restated Rm |
| Revenue | 1 765 | 5 834 | 7 599 |
| – Revenue from contracts with customers | 1 765 | 1 765 | |
| – Dividend revenue | 3 832 | 3 832 | |
| – Interest revenue | 2 002 | 2 002 | |
| Operating expenses | (1 797) | (1 797) | |
| Impairment charges of non-current assets | (2 235) | (2 235) | |
| Finance income | 2 115 | (2 002) | 113 |
| Finance costs | (2 054) | (2 054) | |
| Income from financial assets | 4 | 4 | |
| Dividend income from equity-accounted investments | 3 263 | (3 263) | |
| Dividend income from investments in subsidiaries | 569 | (569) | |
| Profit before tax | 1 630 | 1 630 | |
| Income tax benefit | 127 | 127 | |
| Profit for the year from continuing operations | 1 757 | 1 757 | |
| Profit for the year from discontinued operations | 825 | 825 | |
| Profit for the year | 2 582 | 2 582 | |
| Total comprehensive income for the year | 2 582 | 2 582 | |
| Company | |||
| Statement of cash flows | Previously presented Rm |
Adjustment Rm |
Adjustment Rm |
| Cash flows from operating activities | 1 194 | 4 121 | 5 315 |
| Cash generated by operations | 1 355 | 6 123 | 7 478 |
| Settlement of contingent consideration | (198) | (198) | |
| Interest paid | (2 042) | (2 042) | |
| Interest received | 2 115 | (2 002) | 113 |
| Tax paid | (36) | (36) | |
| Cash flows from investing activities | 2 758 | (4 121) | (1 363) |
| Property, plant and equipment acquired | (101) | (101) | |
| Increase in ESD loans | (41) | (41) | |
| Decrease in ESD loans | 61 | 61 | |
| Deferred consideration paid for acquisition of associates | (349) | (349) | |
| Acquisition of subsidiaries | (1 739) | (1 739) | |
| Increase in investment in subsidiaries | (36) | (36) | |
| Increase in non-interest-bearing loans to subsidiaries | (5) | (5) | |
| Increase in non-interest-bearing loans from subsidiaries1 | 220 | (220) | |
| Increase in interest-bearing loans to subsidiaries | (81) | (81) | |
| Proceeds from disposal of subsidiaries | 924 | 924 | |
| Dividend income received from equity-accounted investments | 3 263 | (3 263) | |
| Dividend income from financial assets and non-current assets held-for-sale | 73 | (69) | 4 |
| Dividend income from subsidiaries | 569 | (569) | |
| Cash flows from financing activities | (2 778) | (2 778) | |
| Interest-bearing borrowings raised | 1 750 | 1 750 | |
| Lease liabilities paid | (17) | (17) | |
| Dividends paid | (4 337) | (4 337) | |
| Shares acquired in the market to settle share-based payments | (174) | (174) | |
| Net increase in cash and cash equivalents | 1 174 | 1 174 | |
| 1 | Reclassified R220 million from investing activities to operating activities as it relates to the non-interest-bearing loans payable to subsidiaries. These loans are not considered to form part of the borrowing activities of the company. |
Dividend income and interest income from financial assets, including cash and cash equivalents, are considered not to represent ordinary activities of the company, but rather ancillary activities that are incidental.
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