ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

Notes to the Financial Statements

26. SED & ESD contributions

2023 R’000 2 486 1 336 2 840 6 662

2022 R’000 2 580 2 726 8 595 13 901

Education

Enterprise development Supplier development

27. Taxation

2023 R’000

2022 R’000

Major components of the tax expense/(income) Current Withholding tax – current period

1 232

31

Deferred Changes in tax rates

-

1 599

Deferred tax – current year

(47 867) (47 867) (46 635)

(57 247) (55 648) (55 617)

Reconciliation of the tax expense Reconciliation between average effective tax rate and applicable tax rate. Current year’s charge as a percentage of profit before taxation Disallowable fair value movements on interest make up liability

3,02% 6,76%

(19,97)% 13,11% (46,03)% 69,10% 12,13% (3,65)% (1,89)% 5,20% 28,00%

Translation effect

108,20% (94,10)% (18,05)%

Exempt IMU grant income* Exempt income – other**

Disallowable expenses – other***

9,45%

Change of tax rate

- %

Other****

11,72% 27,00%

The income tax rate of 28% in 2022 was reduced to 27% in 2023. The translation effect is due to the tax expense which is based on Rand functional currency financials instead of US Dollar functional currency. * Exempt IMU grant income – the IMU grant income is tax exempt from the 2022 financial year in terms of Schedule 11 of the Income Tax Act. ** Exempt income-other – this is mainly dividends. *** Disallowable expenses – other – comprises of disallowed operating expenses that were not incurred in the production of income. **** Other – comprises mainly of unrealised foreign gains that relates to equity investments and related parties’ receivables.

YOUR EXPORT RISK PARTNER

77