Notes to the company financial statements

FOR THE YEAR ENDED 30 SEPTEMBER

17  RESTATEMENT OF PRIOR YEAR ERRORS AND RECLASSIFICATIONS  
 
1. Cash and cash equivalents

The balances with our treasury and corporate office subsidiaries were previously all disclosed as part of short-term loans to subsidiaries. We have subsequently reassessed the nature of these loans in terms of the definition of cash and cash equivalents. A key indicator was that the ability of the extent to which the operations of Barloworld Limited generate sufficient cash flows to pay loans, maintain the operating capacity of the entity, pay dividends and make new investments without reverting to external funding was met and therefore we have reclassified these loans to cash and cash equivalents. The statement of cash flow has also been impacted and restated below.

2. Classification of current and non-current loans

Loans to subsidiaries were also accessed for the nature of the loans and it was subsequently identified that certain loans are long-term in nature, rather than disclosed as short-term and has been adjusted accordingly.

3. Classification of accrued interest

The interest accrued on commercial loans and bonds was previously include in the carrying amount of the loan balance. This has now been reclassified as accruals in payables.

Statement of financial position  Reference to 
above 		 As Reported 
2019 		 Restatement 
Rm 		 2019 
Non-current assets    7 187  2 661  9 848 
Plant and equipment    3    3 
Investment property    58    58 
Intangible assets    1    1 
Investments    2 741    2 741 
Loans to subsidiaries  2  4 384  2 661  7 045 
Current assets    8 821  (2 661) 6 160 
Loans to subsidiaries  1,2  8 817  (5 890) 2 927 
Trade and other receivables    4    4 
Cash and cash equivalents  1    3 229  3 229 
Assets classified as held for sale    676    676 
         
TOTAL ASSETS    16 684    16 684 
EQUITY AND LIABILITIES         
Capital and reserves         
Share capital and premium    286    286 
Other reserves    168    168 
Retained Income    10 514    10 514 
Interest of shareholders of Barloworld Limited    10 968    10 968 
Non-current liabilities    4 402    4 402 
Deferred taxation liability    18    18 
Interest-bearing liabilities    4 384    4 384 
Current liabilities    1 314    1 314 
Loans from subsidiaries    168    168 
Trade and other payables  3  15  50  65 
Amounts due to bankers and short-term borrowings  3  1 131  (50) 1 081 
         
TOTAL EQUITY AND LIABILITIES    16 684    16 684 

Statement of cash flows As Reported 
2019 
Rm		 Restatement 
Rm		 2019 
Rm
Cash flows from operating activities       
Cash utilised in operations  76  (25) 51 
Dividends received from investments (excluding withholding tax) 893    893 
Interest income  588    588 
Finance costs  (528) (25) (553)
Taxation paid  (57)   (57)
Cash flow from operations  972  (50) 922 
Dividends paid  (1 024)   (1 024)
Cash inflows/(outflows) from operating activities  (52) (50) (102)
Cash flows from investing activities       
Additions to investment property       
Acquisition of investment property  (18)   (18)
Proceeds on disposal of investment property       
Increase in financial assets  (72)   (72)
Increase in loans to subsidiaries  837  (942) (105)
Net cash inflow from investing activities  747  (942) (195)
Net cash inflow before financing activities  695  (992) (297)
Cash flows from financing activities       
Proceeds from long-term borrowings  621    621 
Repayment of short-term borrowings  (1 316) 50  (1 266)
Net cash outflow from financing activities  (695) 50  (645)
Net movement in cash and cash equivalents    (942) (942)
Cash equivalents at the beginning of year    4 170  4 170 
Cash and cash equivalents at the end of year    3 228  3 228 

Statement of financial position    As Reported 
2018 
Rm 		 Restatement 
Rm 		 2018 
Rm
Non-current assets    17 350    17 350 
Plant and equipment    4    4 
Investment property    632    632 
Intangible assets    3    3 
Investments    2 669    2 669 
Loans to subsidiaries  2  3 767  6 018  9 785 
Current assets    10 275  (6 018) 10 275 
Loans to subsidiaries  2  10 273  (10 188) 85 
Trade and other receivables    2    2 
Cash and cash equivalents  1    4 170  4 170 
Assets classified as held for sale    93    93 
TOTAL ASSETS    17 443    17 443 
EQUITY AND LIABILITIES         
Capital and reserves         
Share capital and premium    286    286 
Other reserves    168    168 
Retained Income    10 590    10 590 
Interest of shareholders of Barloworld Limited    11 044    11 044 
Non-current liabilities    3 781    3 781 
Deferred taxation liability    14    14 
Interest-bearing liabilities    3 767    3 767 
Current liabilities    2 618    2 618 
Loans from subsidiaries    167    167 
Trade and other payables  3  3  75  78 
Amounts due to bankers and short-term borrowings  3  2 448  (75) 2 373 
         
TOTAL EQUITY AND LIABILITIES    17 443    17 443