Notice of publication date of the audited annual accounts – SENS

                            
Notice of audited annual financial statements publication date
Eskom Holdings SOC Limited
(Registration No. 2002/015527/30)
JSE alpha code: BIESKM
(“Eskom” or “the Group”)
NOTICE OF AUDITED ANNUAL FINANCIAL STATEMENTS PUBLICATION DATE
Eskom hereby notifies its debt investors that due to the delayed appointment of the external auditors as
announced on 4 November 2021 and the extensive process of taking on a new auditor as well as the time it has
taken to resolve several issues that were raised during the audit, Eskom Group’s audited Annual Financial
Statements for the year ended 31 March 2022 (“2022 AFS”) are anticipated to be published by the end of
November 2022.
Eskom is currently resolving, together with the auditors, anticipated restatements to its previously issued
audited financial statements for the prior year ended 31 March 2021 (“FY2021”) which will have an impact on
the Eskom Group’s statements of financial position and income statement, some of which are as follows:
1. Reclassification of coal stocks from current assets to non-current assets – following a review of the quantity
and usage of coal stocks at power stations, it was concluded that a portion of the coal stocks will not be
utilised within the normal operating cycle, as certain of these coal stocks result from coal purchases under
take or pay arrangements exceeding use over a number of years, or are in excess of those levels required
to be held to comply with the grid code and for emergencies to ensure security of supply. As a result,
certain coal stocks will be reclassified from current to non-current assets, with an increase in primary
energy cost expensed, partially offset by an over-provision on a coal penalty;
2. Reclassification of certain electricity debtors from current to non-current;
3. A single discount rate was previously used to present value power station-related environmental
restoration and mine-related closure cost provisions. An adjustment is proposed to effect discount rates
matching the expected timing of the associated cash flows on a per site basis, thereby increasing net
finance costs;
4. Various adjustments to property, plant and equipment, which include assets for which incorrect useful lives
have been used, extension of asset useful lives not accounted for, timing of the recognition of assets under
construction to commercial operations and write off of aged assets under constructions where there are no
further expected future economic benefits;
5. Revaluation of derivative instruments due to the application of incorrect assumptions in the valuation
models;
6. Insufficient consumable stock obsolescence provisions; and
7. Re-presentation of segmental reporting as the segmental financial information presented did not align to
financial information presented internally as required by IAS 8 Operating Segments.
Items 1 and 2 as reflected, have a material impact on the current ratio. Further details on the above
restatements will be made available when the 2022 AFS are released. As the audit is still underway, other
matters may be identified. The audit process has been impacted by broader control issues including stock
counts, procurement compliance and financial reporting matters referred above.
Eskom’s management is fully committed to resolving the above matters and finalising the audit process in
respect of the 2022 AFS.
Johannesburg
29 September 2022
Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 29-09-2022 08:22:00
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