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

COMPANY
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2003
1. OPERATING EXPENSES – NET OF SUNDRY INCOME
are stated after taking account of the following items:
Auditors’ remuneration * *
– Audit fees * *
– Fees for other services — *
– Expenses — —
Directors’ emoluments** 2 *
Fees paid for services 11 1
– Administrative 2 *
– Secretarial — 1
– Technical 9 *
Technical fees received (14) (6)
Analysis of operating expenses by function
Administration and general (2) 1
*Amount less than R1 million.
**For details refer to Directors’ Report.
2. FINANCE INCOME
Interest received — 1
Dividends received from subsidiaries 7 30
7 31
3. FINANCE COSTS
Interest on borrowings 1 —
1 —
4. TAXATION
Current taxation
SA normal taxation 2 1
Current year 1 1
Prior year underprovision 1 —
South African normal taxation is calculated at 30% (2002: 30%) of the estimated
taxable income for the year.
Tax rate reconciliation % %
The charge for the year can be reconciled to the effective rate of taxation as follows:
Taxation at the standard rate 30 30
Tax effect of expenses that are not deductible in determining taxable profit 39 —
Exempt income (42) (28)
Other 12 —
39 2
5. INTEREST IN SUBSIDIARIES
Unlisted shares at cost less amounts written off 12 541 12 403
Amount owing by subsidiaries 1 563 1 547
A list of the major subsidiaries’ material to the financial position
of the Company is set out in Annexure 1 on page 108.
2003 2002
Rm
Rm
14 104 13 950
6. LOANS
Loans to employee share incentive schemes*** 7 7
***These loans bear interest at a variable rate no less than the “official rate of interest” according to the South African Revenue
Service, ranging between 11,25% and 13,25% per annum, and have no fixed date of repayment.
PAGE 106
MTN BUSINESS REPORT 2003