Notes to the annual financial statements | Note 38

for the year ended 31 March 2012
 
      2011
Rm
2012
Rm
 
38. RELATED PARTIES    
Details of material transactions and balances with related parties not disclosed separately in the annual financial statements were as follows:    
           
Government    
The South African Government has a 39.76% direct shareholding in Telkom SA SOC Limited and has the ability to exercise significant influence.    
           
Government of South Africa    
Related party balance    
Trade receivables   355 371  
Trade payables    
Department of Communications   (371) (71)  
           
Related party transactions    
Revenue   (2,904) (3,063)  
Individually significant revenue *   1,151 1,105  
City of Cape Town   95 84  
Department of Correctional Services   66 73  
Department of Health: Gauteng   65 63  
Department of Justice   97 104  
South African National Defence Force: (CSF)   68 59  
South African Police Services   557 522  
South African Revenue Services   49 41  
S.I.T.A. (Pty) Limited   154 159  
Collectively significant revenue*   1,753 1,958  
*  The nature of the individually and collectively significant revenue for both years consists mostly of data revenue.    
           
The terms and conditions of trade receivables and payables are disclosed in the respective notes.    
           
With subsidiaries:    
Trudon (Proprietary) Limited    
Related party balances    
Trade receivables   5 5  
Trade payables   (465) (468)  
           
Related party transactions    
Revenue   (71) (74)  
Expenses   16 14  
Dividend received   (133) (146)  
           
Swiftnet (Proprietary) Limited    
Related party balances    
Trade receivables   2 1  
Trade payables   (26) (6)  
Surplus fund   (10)  
           
Related party transactions    
Revenue   (19) (15)  
Expenses   16 24  
Interest paid   1  
           
Rossal No 65 (Proprietary) Limited    
Related party balances    
Accruals and other payables   (289) (285)  
           
Related party transactions    
Dividend paid   22 3  
Dividend received   (40) (7)  
           
Acajou Investments (Proprietary) Limited    
Related party balances    
Accruals and other payables   (164) (164)  
           
Related party transactions    
Dividend paid   24 17  
Dividend received   (100) (17)  
           
Intekom (Proprietary) Limited    
Related party balances    
Accruals and other payables   (48) (58)  
           
Related party transactions    
Expenses   13 14  
           
Q-Trunk (Proprietary) Limited    
Related party balances    
Loan to subsidiary   13 9  
Impairment of loan   (14) (9)  
The loan is unsecured, interest free and has no fixed repayment terms. The loan has been subordinated in favour of other creditors.    
           
Related party transactions    
Expenses   6 5  
           
Special purpose entity – Cell Captive    
Related party balances    
Investment – sinking fund (refer to note 14)   980 959  
           
Africa Online Limited (‘Africa Online’)    
Related party balances    
Loan to subsidiary   190 264  
Trade receivables   19 26  
           
Related party transactions    
Revenue   (1) (3)  
Expenses   4 4  
Investment income   (9) (5)  
The loan is unsecured, interest free and has no fixed repayment terms.    
           
Multi-Links Telecommunications Limited (Multi-Links)    
Related party balances    
Loan to subsidiary   2,855  
Multi-Links guarantee   10  
Trade receivables   15  
           
Impairment of loan, guarantee, trade receivables and trade payables   (7,558) (319)  
Trade payables   (1)  
           
Related party transactions    
Revenue   (5)  
The loan was unsecured, interest free and no repayment terms had been negotiated.    
           
Telkom International (Proprietary) Limited    
Related party transactions    
Loan to subsidiary   2,482 2,481  
Impairment of loan   (2,209) (2,481)  
           
The loan has been used to purchase a 75% shareholding in Multi-Links. The loan is unsecured and has no fixed repayment term.    
           
iWayAfrica (Proprietary) Limited (formerly MWEB Africa (Proprietary) Limited)    
Related party balances    
Other receivables   29 39  
Loan to subsidiary   80 98  
Impairment of trade and other receivables   (27)  
The loan is unsecured, interest free and has no fixed repayment terms.    
           
Related party transactions    
Revenue   (10) (7)  
Investments income   (4) (2)  
           
Telkom Foundation    
Related party balances    
Sundry provision   (10)  
           
Related party transactions    
Expenses   44 36  
           
Telkom Management Services (Proprietary) Limited    
Related party balances    
Loan to subsidiary   44 45  
Impairment of loan   (44) (45)  
           
The loan bears no interest and has no terms of repayment.    
           
With entities under common control:    
Major public entities    
Related party balances    
Trade receivables   23 11  
Trade payables   (1) (1)  
           
The outstanding balances are unsecured and will be settled in cash in the ordinary course of business.    
           
Related party transactions    
Revenue   (330) (381)  
Expenses   216 212  
Individually significant expenses:   203 207  
South Africa Post Office*   107 95  
Eskom   84 107  
South African Broadcast Services   12 5  
Collectively significant expenses   13 5  
*  Restated    
           
Rent received   (28) (26)  
Individually significant rent received: South Africa Post Office   (24) (22)  
Collectively significant rent received   (4) (4)  
Rent paid   24 21  
Individually significant rent paid: South Africa Post Office   14 13  
Collectively significant rent paid   10 8  
Key management personnel compensation:    
(Including directors’ emoluments)    
Related party transactions    
Short-term employee benefits   119 148  
Post-employment benefits   7 8  
Equity compensation benefits   9  
The fair value of the shares that vested in the current year is RNil million (2011: R8.9 million).