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05
Group financial statements
Notes to the condensed consolidated
annual financial statements
– continued
for the year ended 31 March 2017
16 Interest-bearing debt
2017
Rm
2016
Rm
Non-current interest-bearing debt
4 744
4 566
Local debt
4 550
4 340
Foreign debt
123
154
Finance leases
71
72
Current portion of interest-bearing debt
1 541
703
Local debt
1 500
654
Foreign debt
2
18
Finance leases
39
31
The current portion of interest-bearing debt of R1.541 million (2016: R703 million) for group as at 31 March 2017 is expected to be repaid
from operational cash flow and other borrowings.
18 Trade and other payables
2017
Rm
2016
Rm
Trade and other payables
7 516
7 134
Trade payables
3 870
3 872
Finance cost accrued
60
54
Accruals and other payables
3 586
3 208
Accruals and other payables mainly represent amounts payable for goods received net of value added tax, obligations and licence fees.
Included in the current and prior year balance is the refund from SARS of R854 million including interest. Refer to note 20.
19 Commitments
2017
Rm
2016
Rm
Capital commitments authorised
8 158
6 574
Commitments against authorised capital expenditure
6 594
3 388
Authorised capital expenditure not yet contracted
1 564
3 186
Capital commitments are largely attributable to purchases of property, plant and equipment and software.
Management expects these commitments to be financed from internally generated cash and other borrowings.
17 Provisions
2017
Rm
2016
Rm
Non-current portion of provisions
1 592
1 731
Employee related
1 536
1 665
Non-employee related
56
66
Current portion of provisions
1 521
2 373
Employee related
1 397
2 231
Non-employee related
124
142
The decrease in the non-current employee provision is mainly due to the change in assumptions used to valueTelkom’s obligation to future
retirees in theTelkom retirement fund. The assumptions used are based on the valuation techniques prescribed by IAS 19.
The decrease in the current employee provision is mainly due to the settlement of the VSP/VERP packages provided in the prior financial
year and a lower bonus provision in the current financial year due to changes to the remuneration policy.