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3OPERATING PROFIT
GROUP
The net operating profi t is arrived at after taking the following items into account:
CSIR
2011 2010 2011 2010
R’000 R’000 R’000 R’000
Audit fees 3 501 4 225 3 423 4 157
Fees for services 4 829 6 108 4 530 5 491
Patent costs 4 611 5 660 4 312 5 043
Legal costs 218 448 218 448
Operating leases 16 036 16 169 14 988 15 057
Buildings 8 839 8 944 7 791 7 832
Equipment 4 357 4 639 4 357 4 639
Vehicles 2 840 2 586 2 840 2 586
Net realised foreign exchange (gain)/loss (5 060) 2 684 (5 194) 3 510
Net unrealised foreign exchange loss 1 619 7 254 1 676 8 411
Board members’ and Executive
Management’s emoluments (note 19) 19 513 17 995 17 525 15 898
Impairments/(reversals of impairments) 187 (6 944) (813) (7 252)
Impairment on subsidiaries, joint ventures
and associates 187 464 18 461
Reversal of impairment on trade receivables (831) (7 713) (831) (7 713)
Impairment on intangible assets 831 305 - -
Provision for warranty (53) (1 046) - -
Bad debt written off 544 3 558 544 3 558
Write-down of inventory to net realisable
value 230 - 230 -
Loss/(profi t) on disposal and write-off of
property, plant and equipment 5 506 (647) 5 499 (658)
Profi t on disposal of interests in joint ventures
and associates - (559) - -
Lost and/or stolen equipment and vehicles* 800 937 800 937
Losses incurred 2 419 1 464 2 419 1 464
Losses recovered (1 619) (527) (1 619) (527)
* These are losses incurred in the normal course of the CSIR’s business and are covered by the CSIR’s insurance policy.
The net losses incurred on these are included in the loss/(profi t) on disposal and write-off of property, plant and
equipment amounts.
139 ANNUAL FINANCIAL STATEMENTS