Notes to the condensed consolidated provisional annual financial statements
for the year ended 31 March 2015
2015Rm |
2014Rm |
|
|---|---|---|
| Non-distributable reserves | 1 507 | 2 580 |
| Cell Captive reserve | 2 282 | 2 580 |
| Shares held by subsidiaries and in ESCROW | (775) | – |
The Group has a Cell Captive preference share investment to fund Telkom’s post-retirement medical aid liability.
The fair value gains from the Cell Captive are recognised in profit or loss and then transferred to non-distributable reserves.
The reserve also represents Telkom shares held by subsidiaries and in Escrow, to be utilised in terms of the Telkom Share Plan. Telkom previously disclosed the reserve as treasury shares.