For the year ended 31 march 2015
The condensed consolidated provisional annual financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and in compliance with the Listings Requirements of the JSE Limited and the South African Companies Act, 2008.
The condensed consolidated provisional annual financial statements are presented in South African Rand, which is the Group's functional currency. All financial information presented in Rand has been rounded off to the nearest million.
The condensed consolidated provisional annual financial statements are prepared on the historical cost basis, with the exception of certain financial instruments initially (and sometimes subsequently) measured at fair value. Details of the Group's significant accounting policies are set out below and are consistent with those applied in the previous financial year.
In preparing these condensed consolidated provisional annual financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were consistent with those applied to the consolidated financial statements for the year ended 31 March 2014.
The condensed consolidated provisional annual financial statements have been prepared in accordance with the accounting policies adopted in the Group's last annual financial statements for the year ended 31 March 2014, except for the adoption of the amendments, new standards described below.
Standard(s), Amendment(s) |
Salient feature of the changes |
Effective date |
|---|---|---|
| IFRS 3 Business Combinations | Amendment to scope exception of joint ventures in paragraph 2(a). | 1 July 2014 |
| IFRS 8 Operating Segments | Amendment relating to aggregation of segments and reconciliation of the total reportable segments' assets to the entity's assets if segment assets are reported regularly. | 1 July 2014 |
| IFRS 11 Joint Arrangements | Amendment to IFRS 11 requirements for accounting for an acquired interest in a joint operation that constitutes a business and additional disclosure requirements in terms of IFRS 3 Business Combinations and other IFRSs for business combinations. | 1 January 2016 |
| IFRS 13 Fair Value Measurement | Amendment of scope exclusion in IFRS 13.52 to include all contracts accounted for within the scope of IAS 39 and IFRS 9, regardless of whether they meet the definition of financial asset or financial liability as defined in IAS 32. | 1 July 2014 |
| IAS 16 Property, Plant and Equipment | Amendment to the revaluation method: proportionate restatement of accumulated depreciation of an item of property, plant and equipment. | 1 July 2014 |
| IAS 16 Property, Plant and Equipment and IAS 41 Agriculture | Amendment to IAS 16 and IAS 41 to define bearer plants and include within the scope of IAS 16 Property, plant and equipment those bearer plants that are expected to bear produce for more than one period and have a remote likelihood of being sold as agricultural produce. These were previously in the scope of IAS 41. | 1 January 2016 |
| IAS 16 Property, Plant and Equipment | Amendment providing clarification on acceptable methods of depreciation and amortisation. | 1 January 2016 |
| IAS 19 Employee Benefits | Amendment providing the clarification of the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to periods of service. | 1 July 2014 |
| IAS 24 Related Party Disclosures | Amendment requires disclosure of key management personnel services, provided to the reporting entity or to the parent of the reporting entity, as a related party in the reporting entity. | 1 July 2014 |
| IAS 27 Separate Financial Statements | Amendment to IAS 27 to enable an entity to account for investments in subsidiaries, joint ventures and associates using the equity method when preparing separate financial statements. | 1 January 2016 |
| Investment Entities (Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements) | Amendment exempting 'investment entities' (as defined) from the consolidation of particular subsidiaries. Such investment entity should measure the investment in each eligible subsidiary at fair value through profit or loss. | 1 January 2014 |
| IAS 32 Financial Instruments: Presentation | Amendment to application guidance on the offsetting of financial assets and financial liabilities and the related net credit exposure. | 1 January 2014 |
| IAS 38 Intangible Assets | Amendment providing guide on the revaluation method: proportionate restatement of accumulated amortisation of an intangible asset. | 1 July 2014 |
| IAS 38 Intangible Assets | Amendment providing clarification of acceptable methods of depreciation and amortisation. | 1 January 2016 |
| IAS 39 Financial instruments: Recognition and Measurement | Amendment for novation of derivatives and the continuation of hedge accounting. | 1 January 2014 |
| IAS 40 Investment Property | Amendment providing the interrelationship between IFRS 3 and IAS 40 when classifying property as investment property or owner-occupied property. | 1 July 2014 |
| IFRIC 21 Levies | Interpretation on the accounting for levies imposed by governments. | 1 January 2014 |
The new standards, amendments to standards and interpretations in issue have not yet been adopted and are not yet effective. All standards are effective for annual periods beginning on or after the stated effective date. The impact of these new standards, amendments to standards and interpretations are being assessed.
Pronouncement |
Title |
Effective date |
|---|---|---|
| IFRS 1 First-time Adoption of International Financial Reporting Standards | Consequential amendment to IFRS 7 Financial Instruments Disclosures: Servicing contracts disclosures and offsetting of financial assets and liabilities disclosures in condensed interim financial statements. | 1 January 2016 |
| IFRS 5 Non-current Assets Held for Sale and Discontinued Operations | Amendment to the accounting treatment of changes to a plan of sale or to a plan of distribution to owners where an entity reclassifies an asset or disposal group from held for sale to held for distribution or vice versa. | 1 January 2016 |
| IFRS 7 Financial Instruments Disclosures | Amendment requiring disclosures about the initial application of IFRS 9. | 1 January 2018* |
| IFRS 7 Financial Instruments Disclosures | Additional hedge accounting disclosures resulting from the introduction of a hedge accounting chapter in IFRS 9. | 1 January 2018* |
| IFRS 7 Financial Instruments Disclosures | Servicing contracts disclosures: Application guidance to clarify whether a servicing contract gives rise to continuing involvement in a transferred asset for the purposes determining the transfer disclosure requirements. | 1 January 2016 |
| IFRS 9 Financial Instruments | Classification and measurement of financial assets and financial liabilities and derecognition requirements. | 1 January 2018* |
| IFRS 10 Consolidated Financial Statements | Amendment of the accounting for a split of gains or losses
on the loss of control between:
|
1 January 2016 |
| IFRS 14 Regulatory Deferral Accounts | The new standard describes the financial reporting requirements for 'regulatory deferral account balances' that arise when an entity provides goods or services to customers at a price or rate that is subject to rate regulation. This standard is applicable to first time adoptors of IFRS. | 1 January 2016 |
| IFRS 15 Revenue from contracts with customers | This new standard provides principles that an entity will apply to determine the measurement of revenue and timing of when it is recognised. The underlying principle is that an entity will recognise revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. | 1 January 2017 |
| IAS 1 Presentation of Financial Statements | Amendment aiming to ensure that an entity does not reduce the understandability of its financial statements by obscuring material information with immaterial information or by aggregating material items that have different natures or functions. | 1 January 2016 |
| IAS 19 Employee Benefits | Discount rate: requirement to use the market yields on government bonds denominated in the currency of high quality corporate bonds in cases where there is no deep market for such bonds for the purpose of discounting post-employment benefit obligations. | 1 January 2016 |
| IAS 28 Investment in Associates or Joint Ventures | See IFRS 10 Consolidated Financial Statements | 1 January 2016 |
| IAS 34 Interim Financial Reporting | Certain disclosures are to be given either in the interim financial statements or incorporated by a cross-reference from the interim financial statements to some other statement. These disclosures must also be available to users on the same terms and at the same time as the interim financial statements for the interim financial report to be complete. | 1 January 2016 |
| IAS 39 Financial Instruments: Recognition and Measurement | Amendment to permit an entity to elect to continue to apply the hedge accounting requirements in IAS 39 for a fair value hedge of the interest rate exposure of a portion of a portfolio of financial assets or financial liabilities when IFRS 9 is applied, and to extend the fair value option to certain contracts that meet the 'own use' scope exception. | 1 January 2018* |
| IFRS 10, IFRS 12 and IAS 28, Investment Entities: Applying the Consolidation Exception | Amendment granting exemption from preparation of consolidated Financial Statements for an intermediate parent entity that is subsidiary of an investment entity even if that parent entity measures all of its subsidiaries at fair value. Consequential amendments have also been made to IAS 28 exemption from applying the equity method for entities that are subsidiaries and hold interest in associate and joint venture. | 1 January 2016 |
| *The standards apply when IFRS 9 is applied. | ||
For the year ended 31 march 2014
As previously |
Undersea |
Discontinued |
Restated |
|
|---|---|---|---|---|
| Continuing operations | ||||
| Total revenue | 33 061 | (1 156) | 31 905 | |
| Operating revenue | 32 483 | (83) | (1 112) | 31 288 |
| Payments to other operators | 3 944 | - | 3 944 | |
| Cost of sales | 2 498 | (321) | 2 177 | |
| Net operating revenue | 26 041 | (83) | (791) | 25 167 |
| Other income | 479 | 83 | (31) | 531 |
| Operating expenses | 21 918 | (296) | 21 622 | |
| Employee expenses | 7 137 | (215) | 6 922 | |
| Selling, general and administrative expenses | 4 682 | 17 | 4 699 | |
| Service fees | 3 110 | (7) | 3 103 | |
| Operating leases | 1 052 | (45) | 1 007 | |
| Depreciation, amortisation, impairment, write-offs and losses | 5 937 | (46) | 5 891 | |
| Operating profit | 4 602 | - | (526) | 4 076 |
| Investment income | 176 | (13) | 163 | |
| Finance charges and fair value movements | 292 | - | 292 | |
| Finance charges | 636 | - | 636 | |
| Foreign exchange gains and fair value movements | (344) | - | (344) | |
| Profit before taxation | 4 486 | - | (539) | 3 947 |
| Taxation | 494 | (137) | 357 | |
| Profit from continuing operations | 3 992 | - | (402) | 3 590 |
| Profit from discontinuing operations | (49) | - | 402 | 353 |
| Profit for the year | 3 943 | - | - | 3 943 |
| * This is income relating to undersea cables activities that are not in the ordinary course of business, therefore it was reclassified from operating revenue to other income | ||||
| ** The restatement is due to the classification of the Trudon Group as a discontinued operation. | ||||