Notes to the annual financial statements for the year ended 31 March
1991
1. Establishment
The South African Rail Commuter Corporation Limited was established
on 1 April 1990 in terms of Chapter 5 of the Legal Succession
to the South African Transport Services Act, No. 9 of 1989.
2. Accounting policy
The financial statements are prepared on the historical cost
basis and incorporate the following principal accounting policies:
2.1 Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation.
Depreciation is written off on the straight line method at rates
which in the opinion of the Board of Control are sufficient to
reduce the value of the assets to their estimated residual value
over their expected economic life. No depreciation is charged
on land and permanent way.
2.2 Deferred expenditure
Deferred expenditure represents the difference between cash
received or paid with the issue or purchase of stock and the commitment
on value date after provision for accrued discount. Deferred expenditure
in respect of stock issued is amortised over the life of the stock
on the effective return method and disclosed as finance charges.
The portion in respect of stock bought is written off on realisation.
2.3 Investments
Listed investments in fixed interest bearing stock are accounted
for at the lowest of cost or market value. Listed investments
are stated at nominal value and the discount thereon as deferred
expenditure. Where market value drops below cost, such value is
accounted for against deferred expenditure. No provision is made
when market value rises above cost. Surpluses or shortages as
a result of realisation are disclosed as a decrease or increase
in finance charges (See note 2.2).
2.4 Tax
The Corporation is exempted from the liability of paying any
tax (excluding taxes relating to customs and excise, value added
tax and regional services levies) in terms of legislation. Therefore
no provision is made for the payment of tax or deferred tax.
2.5 Interest received and interest paid
Interest received on investments includes accrued interest
to 31 March 1991. The accrued portion of discount on stock up
to 31 March 1991 is disclosed as interest paid.
| 3. |
Share
capital |
R'000
|
|
Issued
Share capital |
|
|
4
145 916 953 ordinary shares of R1.00 each issued to the State.
(See Note 5) |
4
145 917
|
4. Loans
| Due date |
Loan |
Coupon rate |
Nominal |
|
|
% |
R'000 |
| 30 April 1993 |
RC01 |
15 |
235 005
|
| 30 November 1997 |
RC02 |
14 |
165 000
|
| Total |
|
400 005
|
4.1 Loans are redeemable as indicated above. Capital and interest
payments are guaranteed by the State in terms of Section 27 of
the Legal Succession to the South African Transport Services Act,
No. 9 of 1989.
4.2 Interest is payable semi-annually at coupon rates.
4.3 No foreign loan agreements were entered into during the financial
year.
7. Fixed assets
| Company |
Cost
31/3/91
|
Accumulated
depreciation
|
Book
value 31/3/91
|
|
R'000
|
R'000
|
R'000
|
| Land
and buildings |
1 406 013
|
29 709
|
1 376 304
|
| Permanent
way and works |
812 781
|
17 640
|
795 141
|
| Other
assets |
431 174
|
16 676
|
414 498
|
| Rolling
stock |
1 525 803
|
35 975
|
1 489 828
|
| Head
office assets |
818
|
176
|
642
|
| Work
in progress |
46 356
|
-
|
46 356
|
| Totals |
4 222 945
|
100 176
|
4 122 769
|
With the establishment of the South African Rail Commuter Corporation
Limited on 1 April 1990, assets were transferred from Transnet
Limited to the Corporation at a value determined by Transnet and
accepted by the Minister of Transport and the Minister of Finance
and the Corporation issued a share certificate to the State for
the asset value. A fixed asset adjustment account was created
in both Transnet Limited and the Corporation's accounting records.
This mechanism resulted from the extensive task of dividing the
assets and will be utilised uring the 1991/92 financial year for
the final adjustment of assets.
| 6. |
Investments |
|
|
|
1991
|
|
|
R'000
|
|
Listed investments
(See note 2.3) |
|
|
Eskom (E167) |
0
|
|
Eskom (E168) |
20 000
|
|
Post Office (P002 &
P005) |
133 000
|
|
Transnet (T002 & T007) |
27 000
|
|
Umgeni Water Board
(UG50) |
44 000
|
|
|
224 000
|
|
Fixed
term deposits at financial institutions |
15
103
|
|
Total |
239 103
|
|
|
|
|
Market
value of listed investments |
200
396
|
|
Cost
of listed investments |
200
054
|
|
|
|
| 7. |
Deferred expenditure |
|
|
Discount
on stock (See note 2.2) |
100
580
|
|
|
|
| 8. |
Debtors |
|
|
Debtors include
an amount of R268,116 million in respect of Cape Investment
Bank (in liquidation), a provision of R150,000 million for
irrecoverable debts as well as an amount of R219,374 million
due by the State for the operating shortfall of 1990/91. |
|
|
|
| 9. |
Deposits |
|
|
Short
term fixed deposits |
1
276 215
|
|
Call
money |
40
716
|
|
Total |
1
316 931
|
|
|
|
| 10. |
Creditors |
|
|
Interest
payable |
22
388
|
|
Trade
creditors |
39
424
|
|
Transnet
(Agency fee) |
168
000
|
|
Revenue
received in advance |
3
691
|
|
Total |
233
503
|
|
|
|
| 11. |
Short term loans |
|
|
Bridging
loan |
22
000
|
|
Stock |
2
151 500
|
|
Total |
2
173 500
|
|
|
|
| 12. |
Turnover |
|
|
Turnover represents
fare revenue, infrastructure assets rentals and revenue derived
from property development. |
|
|
|
| 13. |
Head office expenses |
|
|
Includes:
Directors' fee |
103
|
|
|
|
| 14. |
Interest received |
|
|
Interest
is derived from the following investments: |
|
|
Current
account |
1
185
|
|
Fixed
deposit |
205
738
|
|
Call
money |
11
293
|
|
Investments |
4
337
|
|
Total |
222
553
|
|
|
|
| 15. |
Interest
paid |
|
|
Discount
on stock |
213
000
|
|
Coupon
interest |
30
884
|
|
Overdraft
and bridging finance |
264
|
|
Total |
244
148
|
|
|
|
| 16. |
Extraordinary item |
|
|
Provision
for irrecoverable debts |
150
000
|
|
This provision results
from the liquidation of Cape Investment Bank, which is liable
for investments and accrued interest. |
|
|
|
| 17. |
State compensation |
|
|
The State compensation consists of the following
amounts: |
|
|
Dividend:
Transnet |
500
000
|
|
Subsidy:
Operating expenses |
150
000
|
|
Subsidy:
Capital |
11
500
|
|
Operating
shortfall |
119
198
|
|
Depreciation |
100
176
|
|
Total |
880
874
|
|
|
|
| 18. |
Net income attributable to period prior
to establishment |
|
|
Prior to the 1990/91
financial year and the establishment of the Corporation, the
Government granted a voted amount of R600 000 to the Corporation.
By 31 March 1990 the amount was utilised as follows: |
|
Vote |
600
|
|
Less: |
|
|
Salaries |
(218)
|
|
Office
accommodation |
(145)
|
|
Directors'
fees |
(11)
|
|
Other
expenses |
(15)
|
|
Total |
211
|
|
|
|
| 19. |
Comparative figures |
|
|
No comparative figures
are furnished since this is the first reporting by the Corporation. |
|
|
|
| 20. |
Capital commitments |
|
|
On 31 March 1991
several projects were in process. The estimated cost to completion
of the projects to which the Corporation was committed, is
as follows: |
|
1991/92 |
100
000
|
|
1992/93 |
102
000
|
|
1993/94 |
65
000
|
|
1994/95 |
39
000
|
|
1995/96 |
24
000
|
|
Funds to honour
the capital commitments will be borrowed on the capital or
money markets. |
| 21. |
Retirement benefits |
|
and the " South African Rail Commuter Corporation
Limited Provident Fund with effect from 1 April 1990. The purpose
of these Funds is to provide benefits to its members or their
dependants. Membership of one of the two Funds is compulsory for
all permanent employees.
The funds are to be registered in terms of the
Pension Funds Act, No. 24 of 1956. Since the final retirement
benefits payable to members are determined by their contributions
to the Fund, the Corporation's future liability is limited to
a possible actuarial shortage.
|
