Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 127
A class action lawsuit was filed against Sasol Limited and several of its current and former officers in a Federal District Court in New
York (the Court).
The lawsuit alleges that Sasol violated U.S. federal securities laws by allegedly making false or misleading public statements
regarding the LCCP between 2015 and 2020, specifically with respect to timing, costs, and control procedures, (refer to the Group’s
annual financial statements for the year ended 30 June 2020).
The Court dismissed the claims based on alleged misrepresentations about the effectiveness of internal controls over financial
reporting and the management of the LCCP but found that the portions of the case related to the allegations of violations of U.S.
securities laws based on alleged misrepresentations about LCCP cost estimates and schedules could move forward.
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
Securities class action against Sasol Limited and some of its current and former executive directors
The plaintiff has not specified any amount of damages to date. In the amended complaint, a compensatory claim for damages for
the members of the class was left for the trial to be determined. Therefore, no potential loss can be reliably estimated at this stage.
Consequently, no provision has been recognised at 30 June 2021. In this context, it is important to also note that Sasol’s Directors
and Officers insurance has indicated coverage under the policy for this matter.
Other litigation and tax matters
From time to time, Sasol companies are involved in other litigation and similar proceedings in the normal course of business.
A detailed assessment is performed on each matter and a provision is recognised where appropriate. Although the outcome of these
proceedings and claims cannot be predicted with certainty, the company does not believe that the outcome of any of these cases
would have a material effect on the group's financial results.
37.2 Competition matters
Sasol continuously evaluates its compliance programmes and controls in general, including its competition law compliance
programmes and controls. As a consequence of these compliance programmes and controls, including monitoring and review
activities, Sasol has adopted appropriate remedial and/or mitigating steps, where necessary or advisable, lodged leniency
applications and made disclosures on material findings as and when appropriate. These ongoing compliance activities have already
revealed, and may still reveal, competition law contraventions or potential contraventions in respect of which we have taken, or will
take, appropriate remedial and/or mitigating steps including lodging leniency applications.
NOTES TO THE FINANCIAL STATEMENTS
On 30 October 2020, Sasol filed a Motion for Reconsideration of the Court’s order denying Sasol’s Motion to Dismiss. On 15 December
2020 Sasol filed a supplemental brief in support of its Motion. Plaintiffs filed an opposition on 19 January 2021, and Sasol filed a reply
on 1 February 2021. On 7 July 2021 the Court denied Sasol’s motion and ordered the parties to file a revised proposed scheduling order
as to the discovery. The Discovery Schedule was submitted on 9 August 2021 to the Court for its approval.
37.3 Environmental orders
Sasol’s environmental obligation accrued at 30 June 2021 was R16 196 million compared to R21 790 million at 30 June 2020.
38 Related party transactions
Parties are considered to be related if one party directly or indirectly has the ability to control or jointly control the other party or
exercise significant influence over the other party or is a member of the key management of the reporting entity (Sasol Limited). In
particular, this relates to joint ventures and associates. Disclosure in respect of joint ventures and associates is provided in note 22.
Group companies, in the ordinary course of business, entered into various purchase and sale transactions with associates and joint
ventures. The effect of these transactions is included in the financial performance and results of the group. Terms and conditions
are determined on an arm's length basis. Amounts owing (after eliminating intercompany balances) to related parties are disclosed
in the respective notes to the financial statements for those statement of financial position items. No impairment of receivables
related to the amount of outstanding balances is required.
SASOL LIMITED COMPANY
Although Sasol has provided for known environmental obligations that are probable and reasonably estimable, the amount of
additional future costs relating to remediation and rehabilitation may be material to results of operations in the period in which they
are recognised. It is not expected that these environmental obligations will have a material effect on the financial position of the
group.
Material related party transactions
The following table shows the material transactions that are included in the annual financial statements using the equity method for
associates and joint ventures.
for the year ended 30 June
2021
Rm
2020
Rm
2019
Rm
2 635
672
1 474
8
100
691
78
718
95
108
769
813
Sales and services rendered from subsidiaries to related parties
Joint ventures
Joint ventures
Associates
125
Sasol Annual Financial Statements 2021
OTHER
Purchases by subsidiaries from related parties