for the year ended 31 March 2014
2014 |
2013 |
|
|---|---|---|
Rm |
Rm |
|
| Related parties | ||
| Details of material transactions and balances with related parties were as follows: | ||
| With shareholders: | ||
| Government of South Africa | ||
| Related party balances | ||
| 'Trade receivables | 456 | 446 |
| Related party transactions | ||
| 'Revenue | (3 307) | (3 017) |
| Individually significant revenue* | (1 322) | (1 345) |
| City of Cape Town | (45) | (66) |
| Department of Correctional Services | (90) | (93) |
| Department of Health: Gauteng | (51) | (50) |
| Department of Justice | (114) | (118) |
| South African National Defence Force | (72) | (72) |
| South African Police Services | (597) | (601) |
| South African Revenue Services | (38) | (42) |
| S.I.T.A. (Pty) Ltd | (206) | (195) |
| South African Post Office | (52) | (50) |
| Department of Internal Affairs | (57) | (58) |
| Collectively significant revenue** | (1 985) | (1 672) |
| At 31 March 2014, the Government of South Africa held 39.8% (2013: 39.8%) of Telkom's shares and the Public Investment Corporation held 13.5% (2013:11.7%) of Telkom's shares. | ||
| With entities under common control: | ||
| Major public entities | ||
| Related party balances | ||
| 'Trade receivables | 35 | 48 |
| Trade payables | (1) | - |
| Related party transactions | ||
| 'Revenue** | (253) | (260) |
| Expenses | 250 | 237 |
| Individually significant expenses | 236 | 223 |
| South African Post Office | 89 | 96 |
| Eskom | 136 | 127 |
| South African Broadcasting Corporation | 11 | - |
| Collectively significant expenses | 14 | 14 |
| Rent received | (49) | (43) |
| Individually significant rent received: South African Post Office | (43) | (39) |
| Collectively significant rent received | (6) | (4) |
| Rent paid | 29 | 26 |
| Individually significant rent paid: South African Post Office | 19 | 17 |
| Collectively significant rent paid | 10 | 9 |
| Key management personnel compensation: (Including directors and prescribed officers' emoluments) | ||
| Related party transactions | ||
| Short-term employee benefits | 139 | 189 |
| 'Post-employment benefits | 10 | 10 |
| Termination benefits | 2 | 24 |
| Equity compensation benefits | 6 | - |
|
*The nature of the individually and collectively significant revenue consists mostly of data revenue. ** Restated |
||
During the period under review, the shareholders at an Annual General Meeting approved a share scheme which inter alia provides for financial assistance to top management to purchase Telkom shares. A loan in the amount of approximately R6 million was paid to the CFO to purchase Telkom's shares during the current financial year. However, the granting of the loan was inconsistent with the provisions of the Companies Act, making the transaction null and void. The Board acknowledged that it could not ratify the granting of the loan and was obligated to claim the approximately R6 million back from the CFO. The loan was paid back in full by the CFO to Telkom on 16 January 2014.
Terms and conditions of transactions with related partiesOutstanding balances at the year-end are unsecured, interest free and settlement occurs in cash. There have been no guarantees provided or received for related party receivables or payables.