ANNUAL REPORT 2005/2006 - Railway Safety Regulator

2006 2005General Manager: Corporate Affairs - R Mzaidume 484,274 -- Salary 425,099 -- Bonus Provision 7,822 -- Leave p rovision 36,123 -- Bonus payment 15,230 -2006 200513.2 Cash and cash equivalents 11,051,349 15,664,717Bank and Cash 11,051,349 15,664,71714 LEASESGeneral Manager: Safety Assurance - BPH Bruwer 418,784 -- Salary 389,738 -- Bonus provision 13,036 -- Leave provision 9,174 -- Bonus payment 6,836 -12. INCOME TAX14.1 OPERATING LEASE COMMITMENTSAt the balance sheet date the entity had outstanding commitments under operating lease,which fall due as follows:- Up to 1 year 1,689,588 17,772- 1 to 5 years 5,913,560 56,316No provisions has been made for income tax, as anapplication has been lodged with the South AfricanRevenue Services (SARS) to exempt the incomeof the National Railway Safety Regulator in termsof Section 10 (1) of theIncome Tax Act 58 of 1962 (as amended).13. NOTES TO THE CASH FLOW STATEMENT 2006 200513.1 Cash generated by operating activities (4,578,285) 7,102,922Net surplus/(deficit) for the period (4,378,773) 12,762,540Adjustments for:Non-cash deferred income recognised in current year (614,548) (6,282,664)Interest received (187,484) (244,503)Depreciation & other non-cash amount 627,181 286,501Finance charges 17,860 -Finance lease payments 12,914 -(4,522,850) 6,521,874Movements in working capital (55,435) 581,048(Increase) / decrease in accounts receivable (41,461) (3,974)(Decrease) / increase in accounts payable (13,974) 585,02214.2 FINANCE LEASE LIABILITYRailway Safety Regulator leased Photo Copiers from Nashua Ltd during the year for a 5year period. The lease agreements provide for 60 monthly payments of initially R3 418, 86and R4 560, 00 in arrears increasing by 10% annually. The agreements do not provide forcontigent rental payments.Reconciliation between the total minimum lease payments and the present value.Up to 1 yearMinimum lease payments 117,633 -Finance Cost (43,888) -Present Value 73,745 -Fro 1 - 5 yearsMinimum lease payments 436,134 -Fiance Cost (72,871) -Present Value 363,263 -TotalMinimum lease payments 553,767 -Fiance Cost (116,759) -Present Value 437,008 -Annual Report - 45