https://www.engineeringnews.co.za
Financial|Reinforcing|Services
Financial|Reinforcing|Services
financial|reinforcing|services

JSE fines Tongaat R7.5m for prior incorrect financial statements

1st July 2020

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

The JSE has imposed a public censure on sugar company Tongaat Hulett and imposed the maximum permissible fine of R7.5-million following the company’s breach of listing requirements.

The breach relates to incorrect and misleading financial statements that Tongaat published between 2011 and 2018.

The JSE decided to suspend R2.5-million of the fine for five years, on condition that Tongaat is not found to be in breach of material and important provisions of the listing requirements during this period.

This follows after Tongaat had to restate its annual financial statements for the year ended March 31, 2018, to correct material errors contained in the annual financial statements for the years ended March 31, 2011 to 2017.

Similarly, to correct material prior period errors, Tongaat also restated its interim financial statements for the six months ended September 30, 2018, which included an adjustment to the opening balances to correct errors contained in prior interim financial statements between 2011 and 2017.

Tongaat previously reported that the financial impact of the restatement of prior period errors was material in that total assets – for the year ended March 31, 2018, had decreased by about R10-billion and earnings a share of 618c decreased to a loss a share of 1 054c.

The JSE found that the company had not complied with International Financial Reporting Standards for the results between 2011 and 2017, stating it was incorrect, false and misleading in material aspects, and this incorrect information was disseminated to shareholders, the JSE and the investing public.

“The accuracy and reliability of financial information published by companies are of critical importance in ensuring a fair, efficient and transparent market.”

Meanwhile, Tongaat had since mid-2018 been working on a turnaround strategy, which included changes to its governance structure.

Tongaat has responded by pointing out that it had previously advised shareholders of the need to review previously reported financial information, as well as the findings of a forensic investigation conducted by professional services firm PwC into the matter.

It adds that it has accepted the JSE's decision and sanction.

"Tongaat has cooperated and will continue to cooperate with the JSE and other regulatory bodies to deal with this matter.

"The Tongaat board and management remain committed to good corporate governance and has undertaken to prevent a recurrence of a transgression of the JSE listing requirements by reinforcing internal measures and policies to ensure compliance with the requirements," it notes.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.07 0.122s - 159pq - 2rq
Subscribe Now