(formely M-Cell Limited) - Business Report 2003 - MTN Group

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GROUP NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2003 31 March 31 March 2003 2002 Rm Rm 27. INTEREST RECEIVED (PAID) Reconciliation of interest received (paid) to finance income (cost) Interest received (operating activities) 111 114 Interest received (investing activities) 13 17 Finance income recognised in the income statement 124 131 Interest paid (operating activities) (832) (447) Plus: Unrealised exchange loss related to international sinking fund policy (105) — Finance lease charge (20) — Finance cost recognised in the income statement (957) (447) 28. TAXATION PAID Corporate taxation prepaid at 1 April 45 3 Corporate taxation liability at 1 April (330) (481) Amounts unpaid at 1 April (285) (478) Amounts charged to income statements (687) (908) Deferred tax charge (179) 200 Exchange differences 22 (16) Withholding taxes not paid 38 Corporate taxation prepaid at 31 March (3) (45) Corporate taxation liability at 31 March 410 330 (684) (917) 29. CASH AND CASH EQUIVALENTS Bank balances, deposits, cash on hand and amounts receivable on demand 1 542 1 214 Securitised cash deposits** 586 354* 2 128 1 568 Bank overdrafts (206) (338) 1 922 1 230 * Securitised cash deposits were reclassified from trade and other receivables. ** These monies are placed on deposit with banks in Nigeria to secure Letters of Credits. 30. REINSURANCE Reinsurance transactions are entered into with special purpose entities on commercial terms and conditions and at market prices. Income statement effect Outwards reinsurance premium (4) (41) Share of change in unearned premiums (3) (20) Provision Reinsurance commission 14 6 7 (55) Balance sheet effects Share of technical provision Outstanding claims 87 78 Provision of unearned premiums 6 14 Receivables Investment in sinking fund policy 70 60 Unlisted preference shares 8 20 Cash 22 20 Short-term money-market deposits 14 10 Payables (4) (24) PAGE 100 MTN BUSINESS REPORT 2003
2003 2002 Rm Rm 31. CONTINGENT LIABILITIES Guarantees — 86 Orbicom assessment under objection — 74 MTN Uganda licence obligations and employee vehicle 23 22 MTN Cameroon switch building and employee vehicle 29 — 52 182 32. COMMERCIAL COMMITMENT The granting of a national cellular telecommunication licence placed an obligation on a subsidiary company, MTN Network Operator, to set up a Joint Economic Development Plan Agreement with the Postmaster General (now ICASA). This agreement was a condition for the commencement of commercial operations in June 1995 and involves a commitment by the subsidiary company to assist in the development of the South African economy and, in particular, the telecommunications industry. The commitment is estimated at R1 billion over a period of 10 years and is arrived at by a series of multipliers which apply to specific categories of activities. ICASA reviews the Group’s compliance on a two-yearly basis. The first review was done on 29 January 1997 and the second on 31 March 1999. The Group had exceeded its obligations at 31 March 1999, receiving notional credits in this regard from ICASA amounting to R1,3 billion. Accordingly, no provision relating to this commercial commitment has been raised in the annual financial statements. 2003 2002 Rm Rm 33. CAPITAL COMMITMENTS 33.1 Commitments for the acquisition of property, plant and equipment Contracted but not provided for 1 105 800 Authorised but not contracted for 5 303 5 647 33.2 Group’s share of capital commitments of joint ventures Contracted but not provided for 39 76 Authorised but not contracted for 164 144 6 611 6 667 The capital expenditure will be closely and continuously monitored and adjusted to the Group’s financial capacity and market requirements. Financing in this regard will be from existing resources, borrowings and project funding being raised in MTN Nigeria of approximately US$380 million as well as cash generated by operations. 34. LEASE COMMITMENTS At the balance sheet date, the Group had outstanding commitments under non-cancellable operating leases which fall due as follows: – Within one year 327 219 – More than one year but less than two years 191 227 – More than two years but less than five years 364 323 – More than five years 633 186 1 515 955 The preliminary announcement of results published on 19 June 2003 disclosed operating lease commitments of R1 377 million. The additional R138 million relates to space segment leases in respect of Orbicom. 35. OTHER COMMITMENTS Orders placed to purchase handsets 214 27 36. RETIREMENT BENEFIT PLANS Employee benefit obligations The Group operates provident and pension funds, which are defined contribution funds and are governed by the Pension Funds Act. Contributions are made to the funds based upon employees’ pensionable salary packages. All employees are eligible to join the funds and it is a condition of employment. Post-retirement medical benefits The Group has no post-retirement medical benefit obligations. MTN BUSINESS REPORT 2003 PAGE 101
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MTN Group Limited (formerly M-Cell
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FINANCIAL HIGHLIGHTS 2003 ● ●
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OUR VISION IS TO BE THE LEADING PRO
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MTN Footprint AS AT 31 MARCH 2003 E
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EXECUTIVE DIRECTORS 1. P F NHLEKO G
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Keeping pace with the technological
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MTN group values Values To realise
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Flashed, superheated air hotter tha
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for between 94,9% and 97,9% of the
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LOOKING AHEAD The positive results
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operations in local currency was su
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a deferred tax asset raised which i
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Table 5 Capital expenditure Capital
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Table 7 Group facilities Total Util
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In the post-paid market, MTN South
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gathering and analysing relevant cu
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(2002: R450 million). EBITDA was R2
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MTN RWANDA MTN Rwanda recorded plea
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MTN UGANDA MTN Uganda continues to
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products across the Group. Airborn
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GROUP BALANCE SHEET AS AT 28 FEBRUA
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SHAREHOLDER INFORMATION SPREAD OF O
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In a military-like manoeuvre of pre
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Details of attendance by directors
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DEALINGS IN SECURITIES All director
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of internal, financial and operatio
Page 53 and 54: ● No share options have been repr
Page 55 and 56: investment in five countries outsid
Page 57 and 58: Glossary of terms and acronyms Grou
Page 59 and 60: These regular visitors, who shape c
Page 61 and 62: DIRECTORS’ APPROVAL OF THE ANNUAL
Page 63 and 64: DIRECTORS’ REPORT FOR THE YEAR EN
Page 65 and 66: THE MTN GROUP SHARE OPTION AND INCE
Page 67 and 68: EQUITY COMPENSATION BENEFITS FOR EX
Page 69 and 70: DIRECTORS’ SHAREHOLDINGS The inte
Page 71 and 72: DIRECTORS’ EMOLUMENTS AND RELATED
Page 73 and 74: In addition, the Public Investment
Page 75 and 76: The Group’s investment in associa
Page 77 and 78: issue during the period and is base
Page 79 and 80: ● income and expenditure and cash
Page 81 and 82: GROUP BALANCE SHEET AS AT 31 MARCH
Page 83 and 84: GROUP STATEMENT OF CHANGES IN SHARE
Page 85 and 86: 1. BUSINESS AND GEOGRAPHICAL SEGMEN
Page 87 and 88: 2003 2002 Rm Rm 3. OPERATING EXPENS
Page 89 and 90: 2003 2002 Rm Rm 7. EARNINGS PER ORD
Page 91 and 92: Information systems, furniture Netw
Page 93 and 94: Other Connection intangible incenti
Page 95 and 96: 16. TRADE AND OTHER RECEIVABLES Bal
Page 97 and 98: 2003 2002 Rm Rm 20. BORROWINGS (con
Page 99 and 100: 2003 2002 Rm Rm 20. BORROWINGS (con
Page 101 and 102: 22. TRADE AND OTHER PAYABLES Trade
Page 103: Carrying amount Fair value 2003 200
Page 107 and 108: 40. CLASSIFICATION OF MTN MAURITIUS
Page 109 and 110: COMPANY CASH FLOW STATEMENT FOR THE
Page 111 and 112: 7. RECEIVABLES Sundry receivables 7
Page 113 and 114: INTERESTS IN ASSOCIATED COMPANIES A
Page 115 and 116: R S DABENGWA (44) BSc (Eng), MBA Ex
Page 117 and 118: Symbolizing the power of a leader,
Page 119 and 120: Details of directors offering thems
Page 121 and 122: 4. That the maximum discount at whi
Page 123 and 124: PROXIES A form of proxy which sets
Page 125 and 126: This resolution is required to be p
Page 127 and 128: APPENDIX TO THE NOTICE OF ANNUAL GE
Page 129 and 130: FORM OF PROXY ONLY FOR USE BY REGIS
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(formely M-Cell Limited) - Business Report 2003 - MTN Group

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