NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2007
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| 22. | EQUITY ADJUSTMENT | ||||
| 2007 | 2006 | ||||
| R million | R million | ||||
| Share of net attributable profit of associated companies – per income statement | 6 003 | 4 354 | |||
| Minority interest | – | (6) | |||
| Share of net profit retained in distributable reserves | – | (7) | |||
| Dividends received from associated companies | (2 748) | (3 349) | |||
| Share of net profit retained by associated companies | 3 255 | 992 | |||
| Exchange rate differences on translation between average rates and year-end rates | 111 | (95) | |||
| Equity adjustment transferred to non-distributable reserves | |||||
| (Refer to statements of changes in equity) | 3 366 | 897 | |||
| Portion of the share of net profit/(loss) retained by associated companies, that has been | |||||
| accounted for from unaudited interim reports and management accounts | 1 102 | 587 | |||
| Contingent liabilities of associated companies | |||||
| Guarantees to third parties – Performance guarantees, suretyships and letters of credit of various | |||||
| associated companies | 393 | 371 | |||
| Contingent tax liabilities | 103 | 108 | |||
| Product liabilities – British American Tobacco Plc (BAT) has contingent liabilities in respect of litigation regarding product liability, overseas taxation and guarantees in various countries. Despite the quality of defences judged by BAT to be available, BAT is of the opinion that there is a possibility that its results of operations or cash flows could be materially affected by the outcomes of such matters, which could give rise to a consequent effect on Remgro’s share of BAT’s results and attributable net assets. Claims – There are a number of legal or potential claims against various associated companies, the outcome of which cannot be foreseen, but are not regarded as material individually or on a group basis. |
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