Independent auditor's report on the summary Group financial statements
To the shareholders of Blue Label Telecoms Limited
Opinion
The summary consolidated financial statements of Blue Label Telecoms Limited, contained in the accompanying provisional report, which comprise the summarised Group statement of financial position as at 31 May 2020, the summarised Group income statement, summarised Group statements of comprehensive income, changes in equity and cash flows for the year then ended, and related notes, are derived from the audited consolidated financial statements of Blue Label Telecoms Limited for the year ended 31 May 2020.
In our opinion, the accompanying summary consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements, in accordance with the requirements of the JSE Limited Listings Requirements for provisional reports, as set out in the Basis of preparation section in the summary consolidated financial statements, and the requirements of the Companies Act of South Africa as applicable to summary financial statements.
Summary consolidated financial statements
The summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards and the requirements of the Companies Act of South Africa as applicable to annual financial statements. Reading the summary consolidated financial statements and the auditor’s report thereon, therefore, is not a substitute for reading the audited consolidated financial statements and the auditor’s report thereon.
The audited consolidated financial statements and our report thereon
We expressed a qualified audit opinion on the audited consolidated financial statements in our report dated 27 August 2020. That report also includes communication of key audit matters. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period.
The basis for the qualified audit opinion was an inability to obtain sufficient appropriate audit evidence to support the use of the going concern assumption in the current and prior years at the Group’s equity-accounted associate, Cell C Limited (Cell C), due to uncertainty about the results of Cell C’s restructuring process. Had the use of the going concern assumption in the prior year been inappropriate, there could have been a classification misstatement between the impairments on associates and joint venture and the share of gains/(losses) from associates and joint ventures line items in the summarised Group income statement. This matter affects the comparability between the current and prior year relating to these line items and the headline earnings per share (HEPS) and core HEPS earnings measures reported.
Directors’ responsibility for the summary consolidated financial statements
The directors are responsible for the preparation of the summary consolidated financial statements in accordance with the requirements of the JSE Limited Listings Requirements for provisional reports, set out in the Basis of preparation section in the summary consolidated financial statements, and the requirements of the Companies Act of South Africa as applicable to summary financial statements.
Auditor’s responsibility
Our responsibility is to express an opinion on whether the summary consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial Statements.
PricewaterhouseCoopers Inc.
Director: Pietro Calicchio
Registered Auditor
Waterfall
27 August 2020