NOTES TO THE ANNUAL FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2007

   
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6.  INVESTMENTS ASSOCIATED COMPANIES 
  (Annexures B & C)            
  2007  2006 
  Listed  Unlisted  Total  Listed  Unlisted  Total 
  R million  R million  R million  R million  R million  R million 
Shares – at cost  6 720  4 289  11 009  6 594  3 444  10 038 
Equity adjustment  4 758  17 077  21 835  3 395  12 311  15 706 
Carrying value  11 478  21 366  32 844  9 989  15 755  25 744 
Long-term loans  –  189  189  –  354  354 
  11 478  21 555  33 033  9 989  16 109  26 098 
             
Market values of listed             
   investments  28 871    28 871  23 248    23 248 
Directors’ valuation of             
   unlisted investments    62 969  62 969    41 564  41 564 
Market values and directors’ valuation  28 871  62 969  91 840  23 248  41 564  64 812 
             
Excess of market values and directors’ valuation over the carrying value of investments:             
   – attributable to equity holders      58 807      38 714 
   – attributable to minority      –      – 
      58 807      38 714 
             
Of the directors’ valuations of unlisted investments stated above, a substantial proportion amounting to R55 283 million (2006: R36 177 million) was based on the stock exchange prices of underlying listed shares held by the unlisted investments concerned.  
               
    2007  2006 
  Reconciliation of carrying value at the beginning and end of the year  R million  R million 
Carrying value at the beginning of the year  26 098  27 860 
Exchange rate differences on translation of carrying value at the beginning     
   of the year to year-end rate  4 292  (1 244)
     
Income of associated companies 3 366  910 
Share of net attributable profit of associated companies  6 003  4 354 
Dividends received from associated companies  (2 748) (3 349)
Exchange rate differences on translation between average rate to year-end rates  111  (95)
     
Equity-accounted movements on reserves  (824) (240)
Loans repaid  (165) (196)
Disposals/capital reductions  (85) (3 050)
Investments  201  617 
Associated investments reclassified a ssubsidiary companies  –  (19)
Investments reclassified as associated companies  106  – 
Medi-Clinic*  –  1 460 
Other  44  – 
Carrying value at the end of the year  33 033  26 098 
       
  * Since 1 January 2006, Medi-Clinic has been accounted for as an associated company, while it was consolidated previously.