Reunert Annual Report 2004
   
  NOTES TO THE CASH FLOW STATEMENTS
  FOR THE YEAR ENDED 30 SEPTEMBER 2004  
 
 
GROUP
COMPANY
 
2004 
2003 
2004 
2003 
 
Rm 
Rm 
Rm 
Rm 
A. RECONCILIATION OF NET PROFIT
    BEFORE TAXATION TO CASH GENERATED
    FROM OPERATIONS BEFORE WORKING
    CAPITAL CHANGES
Profit before taxation
771,6 
652,9 
704,1 
504,3 
Adjusted for:
– Net interest received
(37,7)
(45,0)
(18,6)
(14,7)
– Dividends received
(27,4)
(0,2)
(394,5)
(253,1)
– Depreciation
57,9 
58,4 
17,6 
16,3 
– Amortisation of goodwill
53,5 
46,2 
6,7 
5,1 
– Surplus on disposal of plant, vehicles
   and equipment
(0,6)
(0,2)
(0,4)
(0,3)
– Abnormal items
(6,0)
– 
19,1 
9,7 
– Other non-cash movements
(5,2)
(2,6)
(0,7)
(11,2)
CASH GENERATED FROM OPERATIONS
   BEFORE WORKING CAPITAL CHANGES
806,1 
709,5 
333,3 
256,1 
B. WORKING CAPITAL CHANGES
– Inventory and contracts in progress
50,0 
169,6 
43,0 
133,5 
– Accounts receivable
(85,4)
11,8 
(12,7)
15,3 
– Trade and other payables and provisions
148,4 
29,1 
30,4 
(5,3)
WORKING CAPITAL CHANGES
113,0 
210,5 
60,7 
143,5 
C. TAXATION PAID IS RECONCILED TO THE
   AMOUNTS DISCLOSED IN THE INCOME
   STATEMENT AS FOLLOWS:
– Net amounts unpaid, at beginning of year
(95,4)
(65,4)
(25,0)
(33,6)
– Current taxation per the income statement
(351,7)
(216,7)
(156,7)
(60,4)
– Taxation owing to subsidiary acquired at
   date of purchase
– 
8,0 
– Net amounts unpaid, at end of year
133,6 
95,4 
71,6 
25,0 
CASH AMOUNTS PAID
(313,5)
(178,7)
(110,1)
(69,0)
D. DIVIDENDS PAID ARE RECONCILED
   TO THE AMOUNTS DISCLOSED IN THE
   STATEMENT OF CHANGES IN EQUITY
   AS FOLLOWS:
– Normal dividends per the statement
   of changes in equity
(243,5)
(226,2)
(265,5)
(246,9)
– Dividends paid to outside shareholders
(24,6)
(32,2)
CASH AMOUNTS PAID
(268,1)
(258,4)
(265,5)
(246,9)
E. ANALYSIS OF ACQUISITION OF
   SUBSIDIARIES AND BUSINESSES
Inventory and contracts in progress
(11,1)
(42,0)
– 
(3,6)
Accounts receivable
(16,6)
(52,9)
– 
– 
Trade and other payables and provisions
7,1 
34,5 
– 
6,0 
Property, plant and equipment
(3,5)
(72,3)
– 
(3,2)
Intercompany balances
– 
(15,3)
Taxation owing to subsidiary acquired at
   date of purchase
– 
(8,0)
Long-term liabilities
– 
26,4 
– 
– 
Loan taken over by purchaser
– 
 21,8 
– 
– 
Net overdraft at time of the acquisition
0,3 
– 
Attributable share of net assets at
    date of acquisition
(21,7)
54,2 
– 
5,1 
Outside shareholders’ interest
(107,9)
– 
Goodwill on acquisitions
(80,8)
(6,4)
– 
(12,9)
Shares bought in existing subsidiaries
(71,0)
– 
Purchase of shareholder loan
   
   
(99,9)
– 
COST OF INVESTMENT
(234,2)
(44,7)
(170,9)
(23,9)
NET OVERDRAFT ON HAND AT TIME
   OF THE ACQUISITION
(0,3)
– 
AMOUNTS STILL OWING TO VENDORS
– 
5,2 
– 
6,3 
ADJUSTMENT TO AMOUNT STILL OWING
   TO VENDORS
– 
– 
(2,6)
– 
LOAN TAKEN OVER BY PURCHASER STILL
   TO BE REPAID
– 
(21,8)
– 
– 
NET CASH PAID
(234,5)
(61,3)
(173,5)
(17,6)