2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/0817 Trade and other payablesAccrued bonusAccrued expensesAccrued leave payProvision for penalties and interestDeposits receivedOther payablesTrade payablesVAT payable2008R’0001,5527135,4484501,31618,33425,8515,201Group2007R’0001,6236435,146450-25,56520,6289,4862008R’000Corporation1,0724404,033--17,0156054682007R’0001,1103774,124--14,3236778,91858,865 63,541 23,633 29,529Provision for penalties and interestThe provision for penalties and interest on income tax represents management’s best estimate of the potentialliability of certain subsidiaries where there is uncertainty whether applications for exemption from income tax will besuccessful.18 Project grants19 RevenueProject grants 143,787 159,097 137,610 152,920Details of the project grants are presented in Annexure 3Rendering of servicesRental incomeInterest received - loans advanced4,43367,21921,3214,36052,21319,513-50,89021,321-49,25119,51392,973 76,086 72,211 68,76420 Operating lossOperating profit for the year is stated after accounting for the following:Operating leases chargesPremises• Contractual amountsEquipment• Contractual amountsProfit on sale of property, plant and equipmentProfit (loss) on sale of investment propertyLoss on recognition of financial instrumentsImpairment on property, plant and equipmentDepreciation on property, plant and equipmentEmployee costsResearch and developmentImpairment on loans to group companiesImpairment on loans advancedImpairment on trade and other receivablesDirect property operating expenditure1,7438821,1742,4241,9317751,8591,9002,625 3,598 2,706 3,7591843(142)1413,95475,8541,08874021,47119,45740,08811(2,717)-(3,419)9,23274,295174(1,342)16,67316,97042,898-833(142)-2,58453,922-2,98821,47119,84138,498-(2,717)--2,49656,167-8,03016,67316,87128,49993