Note 10: Capital additions and disposals

for the six months ended 30 September 2015

Reviewed
Six months ended
30 September 2015
Reviewed
Six months ended
30 September 2014
Restated
Year ended
31 March 2015
Rm Rm Rm
Capital additions and disposals
Property, plant and equipment
Additions 1 913 1 517 4 039
Disposals (184) (10) (16)
Intangible assets
Additions 256 298 987
Disposals (1) - -

The capital expenditure for the six months relates to the deployment of the Next Generation Network, mobile cellular services and converged service offerings. The higher expenditure in this six-month period is largely due to the deployment fibre and other technologies to support the growing data services business, internet capacity growth, links to the mobile cellular operators and access line deployment in selected high-growth commercial and business areas.

An estimated amount of R161 million (31 March 2015: R193 million) included in inventories will be used for Telkom's network expansion of which R135 million ( 31 March 2015:R137 million) was purchased in the current financial year.

Finance charges of R65 million (31 March 2015: R93 million) were capitalised to property, plant and equipment and intangible assets in the current financial year.