Notes on financial statements

1. Accounting Policies
1.1. Borrowing cost

Borrowing costs incurred in respect of qualifying assets are capitalized. This represents a change in accounting
policy. Refer to note 4.
1.3. Revenue
Revenue fro sale of goods consists of wholesale and retail sales to custoers e!cluding value"added ta!ation
and urgency coissions and is recognized when the significant ris#s and rewards of ownership have passed to
the $uyer. Revenue fro the rendering of services is recognized with reference to the stage of copletion at the
$alance sheet date% $ased on costs incurred to date in relation to total estiated costs% and royalty revenue is
recognized on an accrual $asis according to the underlying royalty agreeent.
&. Revenue coprises'
(ale of goods !!!!!!!
(ervices rendered !!!!!!
Royalties !!!!!
)ncluded in sales of goods is an aount of R*** that arose fro the e!change of goods for repairs done.
3. )ncoe Ta! e!pense
(A noral ta!ation
" current !!!!!
" deferred !!!!!
(econdary Ta! on copanies !!!
Tax rate reconciliation
Accounting profit !!!!
Ta! + 3,- !!!!
Ta!ation affects of'
.on"ta!a$le incoe /!!!!0
(econdary Ta! on 1opanies !!!!

* 2ividends received /!!! 3 3,-0
4. (econdary ta! on copanies
(T1 is paya$le at a rate of 1&% 4- on the distri$ution of profits. The potential (T1 on possi$le future distri$utions of
e!isting reserves aounts to R!!!.
4. 1hange in accounting policy

The copany has changed its accounting policy in respect $orrowing costs. 5here $orrowing costs on qualifying
assets were previously recognized as an e!pense% it is now capitalized. This was done to give a fairer account of the
total acquisition cost attri$uta$le to qualifying assets. The change in policy has $een accounted for retrospectively
and coparative figures have $een appropriately restated. The effect of the change in accounting policy is as
follows'
1
&,36 &,34
R R
2ecrease in finance charges !!!!! !!!!!
)ncrease in ta! e!pense /!!!0 /!!!0
""""""""""" """"""""""""
)ncrease in profit 7777777 77777777

)ncrease in property% plant and equipent !!!!! !!!!!
2ecrease in deferred ta! asset /!!!0 /!!!0
)ncrease in equity !!!!! !!!!!
Ad8ustent against retained earnings at the $eginning of &,34 !!!!!
)ncrease in earnings per share /!!!! 9 !!!!0: /!!!!9 !!!!0 !!! !!!!!
&