Notes to the annual financial statements

FOR THE YEAR ENDED 31 MARCH 2008


28.	EQUITY ADJUSTMENT
		2008	2007
		R million	R million
	Share of net attributable profit of associated companies
	and joint ventures – per income statement	7 210	6 003
	Dividends received from associated companies and joint ventures	(3 297)	(2 748)
	Share of net profit retained by associated companies and joint ventures	3 913	3 255
	Exchange rate differences on translation between average rates and year-end rates	162	111
	Equity adjustment transferred to non-distributable reserves
	(Refer to statements of changes in equity)	4 075	3 366
	Portion of the share of net profit retained by associated companies
	and joint ventures, that has been accounted for from unaudited
	interim reports and management accounts	1 039	1 102
	Contingent liabilities of associated companies and joint ventures
	Guarantees to third parties – Performance guarantees, suretyships and letters of credit
	of various associated companies and joint ventures	142	393
	Contingent tax liabilities	98	103

Product liabilities – British American Tobacco Plc (BAT) has contingent liabilities arising when BAT group companies are named as defendants in court cases in various countries with respect to product liability and non-product liability litigation, and arising from overseas taxes, guarantees and other matters. Despite the quality of defences judged by BAT to be available, BAT states in their annual report, where full details may be found, that it is not impossible that its results of operations or cash flows in a particular quarter or financial year could be materially affected by the outcomes of such matters. This 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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