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FINANCIAL STATEMENTS AND NOTES 2007NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 200723.2 GUARANTEED LIABILITYGROUPMINTEK2007 2006 2007 2006R R R RAssociate company liability 432,173 825,624 – –Less: Current portion included in accounts payable (432,173) (412,812) – –– 412,812 – –The Group has assumed its share of the guaranteed liability of an associate company which will be repaid by 15 March 2008.24. FUTURE LEASE LIABILITYGROUPMINTEK2007 2006 2007 2006R R R RFuture operating lease charges for vehicles- Payable within one year 195,353 362,672 195,353 362,672 195,353 544,008 195,353 544,008 - Payable within one year 102,370 – 102,370 – 294,237 – 294,237 –396,607 – 396,607 –25. CONTINGENT LIABILITIESLegal liabilitiesMintek has various legal claims relating to disputed performance in sales and supply contracts. The amounts of the disputes are not expected toexceed R 38 100. Mintek also has disputed employment termination contracts with former employees, the aggregate is not expected to exceedR 233 867.GuaranteesA cession in favour of ABSA for R 5 000 000 to meet requirements for credit card and other banking facilities has been registered.26. TAXATIONGROUPMINTEK2007 2006 2007 2006R R R RTaxation on entity share in associate post-acquisition reserves 2,726,250 330,241 – –Capital gains taxation on disposal of shares in associate 3,689,088 – – –6,415,338 330,241 – –No deferred taxation is raised on the assessed losses of Mindev (Proprietary) Limited due to the uncertainty regarding taxable income to utilise theassets in the foreseeable future.No provision for income tax was made as Mintek is exempted in terms of section 10(1)(CA)(i) of the Income Tax Act, No. 58 of 1962.Tax provision liabilities are with respect to Mindev and its associated companies and are payable through those entities.27. COMMITMENTSContracted for:GROUPMINTEK2007 2006 2007 2006R R R RCapital expenditure 1,640,173 338,276 1,640,173 338,276Authorised and not contracted for – – – –1,640,173 338,276 1,640,173 338,276Internal funds will be provided to meet the expenditure in respect of these commitments, which have been approved and contracted for.annual report 200780