Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 152
1
2
3
4
SASOL LIMITED COMPANY
Notes to the financial statements continued
Note
11
2021
Rm
2020
Rm
139
716
125
142
166
134
58
67
131
3
–
54
167
75
1 034
684
Other operating expenses
Other operating expenses includes:
Management fee paid to Sasol South Africa Limited
Professional fees¹
Employee-related expenditure
salary and related expenses
share-based payment expense
18
Donations
Other
1 Professional fees relate mainly to standby underwriters fees, legal fees and other cost incurred in relation to the potential rights issue which was
announced on 17 March 2020.
2021
Rm
12
2020
Rm
Remeasurement items affecting operating profit
Effect of remeasurement items
–
Impairment of investment in subsidiary
(36 508)
Remeasurement items 2021
The valuation of the Sasol South Africa Group has increased in the current year due to economic recovery as well an improvement in
chemical prices and a higher demand for solvents and other chemical products. The higher valuation indicated a potential reversal of
the prior year impairment. The SSA valuation is extremely sensitive to macroeconomic changes, mainly oil price and US$ exchange
rate, (2021 – R33,0 billion; 2020 – R4,0 billion; 2019 – R121,4 billion). The prior impairment was therefore not reversed due to the
valuation sensitivity, uncertainty over the timing and extent of the continued price recovery.
Remeasurement items 2020
Impairment of investment in subsidiary
The company’s investment in Sasol South Africa Limited Ltd has been impaired to fair value, based on the results of an internal
valuation of Sasol South Africa Limited performed at 30 June 2020. The lower valuation of the entity is mainly due to the impact of
the lower oil price, depressed chemical market and the impact of COVID-19. The investment was impaired to a recoverable amount of
R3,3 billion.
13
2021
Rm
2020
Rm
Dividends received from subsidiaries – recognised in revenue
16 177
7 587
Cash dividends received – per statement of cash flows
16 173
7 587
Revenue
150
Sasol Annual Financial Statements 2021