| 18 Inventories |
|
Group |
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2017
Rm |
|
|
2016
Rm |
|
|
2017
Rm |
|
|
2016
Rm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1 384 |
|
|
971 |
|
|
859 |
|
|
506 |
|
| Gross inventories |
|
1 522 |
|
|
1 062 |
|
|
979 |
|
|
582 |
|
| Write-down of inventories to net realisable value |
|
(138) |
|
|
(91) |
|
|
(120) |
|
|
(76) |
|
| Inventories consist of the following categories: |
|
1 384 |
|
|
971 |
|
|
859 |
|
|
506 |
|
| Installation material, maintenance material and network equipment |
|
620 |
|
|
436 |
|
|
405 |
|
|
250 |
|
| Merchandise |
|
764 |
|
|
535 |
|
|
454 |
|
|
256 |
|
| Write-down of inventories to net realisable value |
|
138 |
|
|
91 |
|
|
120 |
|
|
76 |
|
| Opening balance |
|
91 |
|
|
92 |
|
|
76 |
|
|
92 |
|
| Acquisition of BCX |
|
– |
|
|
21 |
|
|
– |
|
|
– |
|
| Charged to selling, general and administrative expenses |
|
67 |
|
|
54 |
|
|
47 |
|
|
(16) |
|
| Inventories written off |
|
(20) |
|
|
(76) |
|
|
(3) |
|
|
– |
|
An estimated amount of R48 million (2016: R101 million) included in inventories will be used for Telkom's network expansion in the 2018 financial year, of which R48 million (2016: R83 million) was purchased in the current financial year.
The increase in inventories was mainly attributable to the increase in installation and maintenance and network equipment.
The increase in write-down of inventories is mainly due to higher obsolescence and slow moving stock.