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CSIR ANNUAL REPORT 2010/11
Notes to the Annual Financial Statements
for the year ended 31 March 2011
4FINANCE INCOME/ExPENSE
GROUP CSIR
2011 2010 2011 2010
R’000 R’000 R’000 R’000
Finance income 58 861 78 468 57 243 75 921
Interest on bank balances and investments 50 892 65 144 49 274 62 597
Adjustment on initial recognition of Contract R&D income* 7 969 13 324 7 969 13 324
Finance expense (4 063) (7 152) (4 063) (7 152)
Fair value adjustment on trade and other receivables 1 6 1 6
Adjustment on initial recognition of operating expenses* (4 064) (7 158) (4 064) (7 158)
54 798 71 316 53 180 68 769
*These adjustments are due to the effect of the time value of money (the value of discounting) in terms of SAICA’s Circular
9 of 2006: Transactions giving rise to adjustments to revenue/purchases.
5INCOME TAx ExPENSE
The CSIR is exempt from South African income tax in terms of section 10 (1) (t) (i) of the Income Tax Act, Act No 58 of
1962.
South African normal taxation due by subsidiaries 60 122
Current taxation 202 122
Deferred taxation - temporary differences (142) -
60 122
South African normal rate of taxation 28% 28%
Profi t attributable to tax exempt entities (29%) (25%)
Assessed loss (refer to note 13) 1% (3%)
Current and deferred taxation - effective rate 0% 0%
140