Interfront Annual Report 2022

PART E: FINANCIAL INFORMATION 111 International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2022 Statement of Financial Position 2021 Note As previously reported Adjustment Restated Payables from exchange transactions 7 337 836 4 337 751 11 675 587 Accumulated surplus 70 235 499 (3 123 181) 67 112 318 Deferred taxation 3 360 936 (1 214 570) 2 146 366 80 934 271 - 80 934 271 Statement of Financial Performance 2021 Note As previously reported Adjustment Restated Revenue from exchange transactions 109 701 258 (4 337 752) 105 363 506 Taxation 1 367 427 (1 214 570) 2 581 997 Surplus for the year 111 068 685 (3 123 182) 107 945 503 Cash Flow Statement 2021 Note As previously reported Adjustment Restated Cash flow from operating activities Revenue from services 134 318 955 (4 337 752) 129 981 203 SARS prepaid amount - 4 337 752 4 337 752 134 318 955 - 134 318 955 Adjustment Due to the change in the funding model that resulted in an amended billing model from time and material billing to fixed price billing, the accounting treatment of revenue was amended to correctly reflect the revenue at 31 March of each respective year, with consideration given to the stage of completion principle. This resulted in the deferment of revenue items not deemed to be completed at year-end. 31.Other Matters Tatis International (Pty) Ltd (in liquidation), with whom Interfront contracted through a sale of business agreement, was placed in liquidation on 19 April 2018. The liquidators convened an insolvency enquiry into the affairs of Tatis International (Pty) ltd (in liquidation), for the purpose of inter alia identifying possible claims and following up inter alia on the agreements to which the controlled entity was also a party. Tatis International (Pty) Ltd (in liquidation) indicated its intention to commence arbitration proceedings in accordance with the provisions inter alia of the sale of business agreement, and an arbitration agreement is in the process of being entered into between Tatis International (Pty) Ltd (in liquidation) and Interfront. The parties agreed that an informal without prejudice mediation process would not be followed. This process is ongoing and no clear estimation can be made on the date that the process will be concluded. Interfront, as well as its legal representation remain of the view that the entity is not liable for any claim. Accordingly, no provision or contingency has been included in these financial statements.