Notes to the company financial statements
for the year ended 31 March 2017

Rm	2017	2016
1. Revenue
Interest income	1	1
Dividends received from subsidiary	530	532
	531	533

2. Non-trading and capital items
Corporate transaction	–	(3)
	–	(3)

3. Investment in subsidiary
Opening carrying value	5 748	5 748
Carrying value	5 748	5 748

The investment in subsidiary is carried at cost.

Details of the group’s financial interests in its subsidiaries are set out in note 48 to the group financial statements.

4. Share capital
Share capital at no par value	6 192	6 192

	2017		2016
	Number of shares ’000	Share capital at no par value Rm	Number of shares ’000	Share capital at no par value Rm
4.1 Share capital
Authorised
Ordinary shares no par value	2 500 000	–	2 500 000	–
Non-convertible redeemable B preference shares	45 000	–	45 000	–

Issued
Ordinary shares no par value	1 341 427	6 192	1 341 427	6 192
	1 341 427	6 192	1 341 427	6 192

4.2 Movement in share capital
Opening balance	1 341 427	6 192	1 302 356	6 192
Shares issued to the Employee Share Option Plan*	–	–	39 071	–
Closing balance	1 341 427	6 192	1 341 427	6 192
* Refer to note 23.3.1 of the group financial statements.

Rm	2017	2016
5. Cash utilised in operations
Profit before taxation	515	519
Items disclosed separately:
Investment income	(531)	(363)

Movement in working capital balances
Other receivables	–	(160)
Payables	2	(1)
	(14)	(5)

6. Related party disclosure
List of related party relationships *Major shareholders* The equity holders of the company are detailed in Annexure A.

Mercer Africa Limited, a subsidiary of the US-listed Marsh & McLennan Companies Inc., holds a 33% interest in the company.

*Subsidiaries and associates* Details of subsidiaries and associates, which are considered material to the group and in respect of which the group has a continuing interest, are provided in note 48 to the group financial statements.

*Key management personnel* Details of key management personnel are included in the group financial statements.

6.1 Summary of related party transactions
Transactions between related parties comprise non-interest-bearing loans.


6.2 Transactions with subsidiaries
Loan balances classified as intercompany loans
Opening balance	302	124
Cash transferred (to)/from group companies	2	(374)
Dividend received	–	362
Dividend in specie	–	170
Charges to subsidiaries	–	2
Share-based payments	12	18
Closing balance	316	302

Annual Financial Statements 2017