2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/0825 Taxation (continued)Reconciliation of the tax expenseReconciliation between accounting profit and tax expense.Accounting profitTax at the applicable tax rate of 29% (2007:29%)2008R’00054,20215,719Group2007R’00025,5307,4042008R’000Corporation37,91510,9952007R’00015,0534,365Tax effect of adjustments on taxable incomeChange in rate of taxOther temporary differencesFair value gains not subject to capital gains taxExempt income(8)27(627)(13,462)-(104)(9)(6,686)---(10,995)---(4,365)1,649 605 - -The Corporation has been granted exemption from South African normal taxation in terms of Section 10(1)(cA)(i) of theIncome Tax Act.Certain subsidiaries have applied for exemption from South African normal taxation, to which no response has beenreceived from the South African Revenue Service. A provision for taxation has been raised in those subsidiaries wheretax exemption is not expected to be obtained.26 Cash generated from / (used in) operationsProfit before taxationAdjustments for:Depreciation and amortisation(Profit) / loss on sale of assetsIncome from equity accounted investmentsDividends receivedInterest receivedFinance costsFair value adjustmentsMovements in retirement benefit assets and liabilitiesImpairment allowance for doubtful advances and debtsGain on release from debtProvision for doubtful performance guaranteesLoss on recognition of financial assetsChanges in working capital:InventoriesTrade and other receivablesTrade and other payablesDeferred income54,20213,968(843)(1,469)(101)(52,359)2,672(56,448)1,28043,154(2,949)(1,486)14243(22,128)(4,678)238,22725,5315,8142,717(1,622)(2,099)(42,369)2,172(62,303)1,17432,393-(91)-2444,253(28,334)320,42037,9152,584(833)-(44)(52,745)2,850(49,870)1,28045,786-(1,486)142-(21,157)(5,899)11,80815,0532,4962,717-(2,053)(41,980)1,935(60,643)1,17441,664-(91)--(1,027)(11,069)1,670211,227 257,900 (29,669) (50,154)27 Tax paidBalance at beginning of the yearCurrent tax for the year recognised in income statementBalance at end of year(3,401)(912)3,922(3,332)(674)3,401------(391) (605)95