EnX : Annual Financial Statements

GROUP FINANCIAL STATEMENTS

as at end August

2022

AUDITED ANNUAL

FINANCIAL STATEMENTS

Directors' responsibility statement	1
Chief executive officer and Chief financial officer responsibility statement	2
Company secretary compliance statement	2
Independent auditor's report	3
Audit and risk committee report	6
Directors' report	11
Consolidated statement of financial position	16
Consolidated statement of profit or loss and other comprehensive income	17
Consolidated statement of changes in equity	19
Consolidated statement of cash flows	20
Consolidated segmental analysis	21
Notes to the consolidated annual financial statements	23
Company statement of financial position	73
Company statement of profit or loss and other comprehensive income	74
Company statement of changes in equity	75
Company statement of cash flows	76
Notes to the company annual financial statements	77
ANNEXURE
Annexure A - Interest in principal subsidiaries	86
Annexure B - Shareholders' profiles	88

ABOUT	OUR	OUR	OUR	ACTING	ANNUAL FINANCIAL
THIS REPORT	GROUP	PERFORMANCE	ACCOUNTABILITY	SUSTAINABLY	STATEMENTS	GENERAL

DIRECTORS' RESPONSIBILITY STATEMENT

for the year ended 31 August 2022

The board of directors of enX Group Limited ("the issuer" or "the company") and its consolidated subsidiaries ("the group") are required in terms of the Companies Act to maintain adequate accounting records and are responsible for the content and integrity of the audited consolidated and separate annual financial statements and related financial information included in this report. It is their responsibility to ensure that the consolidated and separate annual financial statements fairly present the state of affairs of the group and the company as at the end of the financial year, 31 August 2022, and the results of their operations and cash flows for the year then ended, in conformity with International Financial Reporting Standards ("IFRS") and its interpretations adopted by the International Accounting Standards Board, the SAICA Financial Reporting Guides, (as issued by the Accounting Practices Committee) and the Financial Reporting Pronouncements (as issued by the Financial Reporting Standards Council (FRSC)). The independent external auditor is engaged to express an independent opinion on the consolidated and separate annual financial statements.

The consolidated and separate annual financial statements are prepared in accordance with IFRS, JSE Listings Requirements and Companies Act 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 group's 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.

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.

Weaknesses identified by management and directors in the systems of internal control in the prior year are been improved through revised standards of internal controls. During the year the group decided to conduct more of the internal audit functions inhouse to ensure any newly identified weaknesses are addressed and that the current system of internal control is effective and that standards and policies are adhered to.

The directors have reviewed the group's cash flow forecast for the twelve-month period ending November 2023 and in light of this review, the current financial position and the additional considerations documented in the directors' report with regards to going concern as well as note 39 in the consolidated annual financial statements, they are satisfied that the group has, or has access to, adequate resources to continue in operational existence for the foreseeable future.

The consolidated and separate annual financial statements have been audited by the group's external auditor and their report is presented on pages 3 to 5.

PREPARER OF THE CONSOLIDATED AND SEPARATE ANNUAL FINANCIAL STATEMENTS

The consolidated and separate annual financial statements have been prepared under the supervision of the CFO, Robert Lumb CA(SA).

The financial statements are available on the group's website www.enxgroup.co.za

APPROVAL OF CONSOLIDATED AND SEPARATE ANNUAL

FINANCIAL STATEMENTS

The consolidated and separate annual financial statements set out on pages 16 to 71 and pages 72 to 87 respectively, which have been prepared on the going concern basis, were approved by the board of directors on 3 November 2022 and were signed on its behalf by:

A Hannington	R Lumb
Chief Executive Officer	Chief Financial Officer

enX Group Integrated Report 2022

1

ABOUT	OUR	OUR	OUR	ACTING	ANNUAL FINANCIAL
THIS REPORT	GROUP	PERFORMANCE	ACCOUNTABILITY	SUSTAINABLY	STATEMENTS	GENERAL

CHIEF EXECUTIVE OFFICER

AND CHIEF FINANCIAL OFFICER

RESPONSIBILITY STATEMENT

In terms of paragraph 3.84(k) of the JSE Listings Requirements, each of the directors, whose names are stated below, hereby confirm that:

• the consolidated and separate annual financial statements set out on pages 16 to 87, fairly present in all material respects the financial position, financial performance and cash flows of the group in terms of IFRS;
• to the best of our knowledge and belief, no facts have been omitted or untrue statements made that would make the annual financial statements false or misleading;
• internal financial controls have been put in place to ensure that material information relating to the issuer and its consolidated subsidiaries have been provided to effectively prepare financial statements of the issuer;
• the internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements, having fulfilled our role and function as executive directors with primary responsibility for implementing and execution of controls;
• where we are not satisfied, we have disclosed to the Audit and Risk Committee ("ARC") and the auditors any deficiencies in the design and operational effectiveness of the internal financial controls and have taken steps to remedy these deficiencies; and
• we are not aware of any fraud that involves directors.

A Hannington	R Lumb
Chief Executive Officer	Chief Financial Officer

COMPANY SECRETARY

COMPLIANCE STATEMENT

for the year ended 31 August 2022

In my capacity as company secretary, I hereby confirm that in terms of section 88(2)(e) of the Companies Act, the company has lodged all returns required of a public company in terms of this Act for the year ended 31 August 2022 with the Registrar of Companies and that all these returns are true, correct and up to date.

R Cloete

Company secretary

Sandton

3 November 2022

2 enX Group Integrated Report 2022

ABOUT	OUR	OUR	OUR	ACTING	ANNUAL FINANCIAL
THIS REPORT	GROUP	PERFORMANCE	ACCOUNTABILITY	SUSTAINABLY	STATEMENTS	GENERAL

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ENX GROUP LIMITED REPORT ON THE AUDITED CONSOLIDATED AND SEPARATE ANNUAL FINANCIAL STATEMENTS

OPINION

We have audited the consolidated and separate financial statements of enX Group Limited (the Group and Company) set out on pages 16 to 87 , which comprise the consolidated and separate statements of financial position as at 31 August 2022, and the consolidated and separate statements of profit or loss and other comprehensive income, the consolidated and separate statements of changes in equity and the consolidated and separate statements of cash flows for the year then ended, and notes to the consolidated and separate financial statements, including a summary of significant accounting policies.

In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of enX Group Limited and its subsidiaries as at 31 August 2022, and its consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group and Company in accordance with the Independent Regulatory Board for Auditors' Code of Professional Conduct for Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants' (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

No Key Audit matters have been identified for the separate financial statements.

Key audit matter

How the matter was addressed in the audit

The valuation of Maintenance Fund as it relates to maintenance revenue recognised

Revenue recognised in relation to the maintenance fund in Eqstra has been assessed in terms of IFRS 15 "Revenue from contracts with customers". Detailed consideration is given by management to the accounting for maintenance revenues, because of these being of

a longer-term nature and judgement needing to be exercised with regard to revenue recognised in each accounting period.

In addition, management involve the use of an actuarial expert to project future costs to be incurred on the maintenance of the vehicles.

The level of judgement involved in the valuation of the Contract Liability of R126 million as disclosed in note 18 and resulting impact on revenue recognised of R606 million as disclosed in note 19 has been considered to be a Key Audit Matter.

We audited the valuation of the IFRS 15 Contract Liabilities by assessing the following:

Assessed the design and implementation of relevant controls over the valuation of the Contract Liability at year end.

Our actuarial specialists reviewed the key actuarial assumptions employed in the actuarial model and assessed the appropriateness of the model used. We concluded that the model and the assumptions used in determining future costs were appropriate.

The underlying information used in the actuarial model was agreed to the leasing system and detailed substantive testing was performed on the information to ensure it is materially complete and accurate. We concluded that there was no material misstatements.

We verified the mathematical accuracy of the formulae used in the model.

We performed detail tests on the maintenance revenue and maintenance expense to ensure the occurrence of the revenue was appropriate.

We assessed the presentation and disclosure as it relates to the maintenance fund in the enX Group consolidated financial statements and consider these to be in line with the requirements of IFRS 15.

We concluded that the valuation of the Contract Liability and the occurrence of the Maintenance Revenue was appropriate.

enX Group Integrated Report 2022

3