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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Country of incorporation and domicile South Africa
Nature of business and principal activities Cartrack Holdings Limited is an investment holding company operating principally within the telematics industry
Directors Isaias Jose Calisto (Global chief executive officer)Morn Grundlingh (Global chief financial officer)David Brown (non-executive)Thebe Ikalafeng (non-executive)Sharoda Rapeti (non-executive)Kim White (non-executive)
Registered office Cartrack Corner11 Keyes RoadRosebank, JohannesburgSouth Africa2196
Business address Cartrack Corner11 Keyes RoadRosebank, Johannesburg South Africa2196
Postal address PO Box 4709Rivonia2128
Holding company One August Holdings Proprietary Limited Incorporated in South Africa
Bankers Rand Merchant Bank a division of FirstRand Bank LimitedMercantile Bank LimitedNedbank LimitedStandard Bank Limited
Auditors Grant Thornton Johannesburg PartnershipChartered Accountants (SA)Registered AuditorsA South African member firm of Grant Thornton International
Secretary A De Villiers
Company registration number 2005/036316/06
The reports and statements set out below comprise the condensed consolidated interim financial statements presented to the shareholders:
Directors responsibilities and approval 2
Independent auditors review report 3
Condensed reviewed consolidated interim statement of financial position 4
Condensed reviewed consolidated interim statement of profit or loss and other comprehensive income 5
Condensed reviewed consolidated interim statement of changes in equity 6
Condensed reviewed consolidated interim statement of cash flows 7
Accounting policies 8
Notes to the condensed reviewed interim financial statements 9
Level of assuranceThese condensed consolidated interim financial statements have been reviewed in compliance with the applicable requirements of the Companies Act 71 of 2008.
Issued30 October 2018
DIRECTORS RESPONSIBILITIES AND APPROVALFor the interim period 31 August 2018
The directors are required in terms of the Companies Act, 71 of 2008 to maintain adequate accounting records and are responsible for the content and integrity of the condensed consolidated interim financial statements and related financial information included in this report. It is their responsibility to ensure that the condensed consolidated interim financial statements fairly present the state of affairs of the Group as at the end of the financial six months and the results of its operations and cash flows for the six months then ended, in conformity with IAS 34 Interim Financial Reporting.
The condensed consolidated interim financial statements are prepared in accordance with IAS34 and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.
The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the Group and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the board sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the Group and all employees are required to maintain the highest ethical standards in ensuring the Groups business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the Group is on identifying, assessing, managing and monitoring all known forms of risk across the Group. While operating risk cannot be fully eliminated, the Group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.
The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the condensed consolidated interim financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.
The directors have reviewed the Groups cash flow forecast for the period to October 2019 and, in light of this review and the current financial position, they are satisfied that the Group has or had access to adequate resources to continue in operational existence for the foreseeable future.
The independent reviewer is responsible for independently reviewing and reporting on the Groups condensed consolidated interim financial statements. The condensed consolidated interim financial statement have been examined by the Groups independent auditor and their report is presented on page 3.
The condensed consolidated interim financial statements set out page 4 to 22, which have been prepared on the going concern basis, were approved by the board on 30 October 2018 and were signed on their behalf by:
Isaias Jose Calisto Morn Grundlingh(Executive) (Executive)
Rosebank30 October 2018
INDEPENDENT AUDITORS REVIEW REPORT
Audit Tax Advisory
Independent Auditors Review Report on condensed consolidated interim financial statements To the shareholders of Cartrack Holdings Limited We have reviewed the condensed consolidated interim financial statements of Cartrack Holdings Limited , contained in the accompanying interim report, which comprise the condensed consolidated interim statement of financial position as at 31 August 2018 and the condensed consolidated interim statements of comprehensive income, changes in equity and cash flows for the period then ended, and selected explanatory notes. Directors' responsibility for the condensed consolidated interim financial statements The directors are responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with the requirements of the JSE Limited Listings Requirements for interim reports, as set out in note 1 to the condensed consolidated interim financial statements, and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors responsibility Our responsibility is to express a conclusion on these condensed consolidated interim financial statements. We conducted our review in accordance with International Standard on Review Engagements (ISRE) 2410, which applies to a review of historical information performed by the independent auditor of the entity. ISRE 2410 requires us to conclude whether anything has come to our attention that causes us to believe that the condensed consolidated interim financial statements are not prepared in all material respects in accordance with the applicable financial reporting framework. This standard also requires us to comply with relevant ethical requirements. A review of condensed consolidated interim financial statements in accordance with ISRE 2410 is a limited assurance engagement. We perform procedures, primarily consisting of making inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluate the evidence obtained. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these financial statements. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements of Cartrack Holdings Limited for the period ended 31 August 2018 are not prepared, in all material respects, in accordance with the requirements of the JSE Limited Listings Requirements for interim reports, as set out in note 1 to the condensed consolidated interim financial statements, and the requirements of the Companies Act of South Africa. GRANT THORNTON Registered Auditors Practise number: 903485E J Barradas Partner Chartered Accountant (SA) Registered Auditor 30 October 2018 @Grant Thornton Wanderers Office Park 52 Corlett Drive Illovo 2196
CONDENSED REVIEWED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITIONAs at 31 August 2018
Figures in rand thousands Notes
Reviewed six months
ended 31 August
Unaudited six months
ended 31 August
Audited 12 months
ended 28 February
ASSETSNon-current assets Property, plant and equipment 4 1 006 431 405 052 516 045 Contract asset 5 92 793 Goodwill 6 132 904 117 467 107 597 Deferred tax 61 137 50 347 49 488
1 293 265 572 866 673 130
Current assetsInventories 188 927 160 348 173 680 Loans to related parties 1 063 1 823 2 272 Trade and other receivables 7 201 140 164 494 154 952 Current tax receivable 7 253 3 320 4 143 Cash and cash equivalents 51 983 42 121 69 573
450 366 372 106 404 620
Total assets 1 743 631 944 972 1 077 750
EQUITY AND LIABILITIESEquityShare capital 42 488 42 488 42 488 Treasury shares (12 105) (12 105) (12 105)Reserves 17 617