| Group | Company | ||||||||||||
19. Inventories |
2015 Rm |
2014 Rm |
2015 Rm |
2014 Rm |
|||||||||
| 552 | 646 | 531 | 539 | ||||||||||
| Gross inventories | 644 | 757 | 623 | 650 | |||||||||
| Write-down of inventories to net realisable value | (92) | (111) | (92) | (111) | |||||||||
| Inventories consist of the following categories: | 552 | 646 | 531 | 539 | |||||||||
| Installation material, maintenance material and network equipment | 291 | 274 | 291 | 274 | |||||||||
| Merchandise | 261 | 372 | 240 | 265 | |||||||||
| Write-down of inventories to net realisable value | 92 | 111 | 92 | 111 | |||||||||
| Opening balance | 111 | 307 | 111 | 304 | |||||||||
| Charged to selling, general and administrative expenses | 119 | 63 | 119 | 63 | |||||||||
| Reversal of write-down due to the disposal of iWayAfrica Group | – | (3) | – | – | |||||||||
| Inventories written off | (138) | (256) | (138) | (256) | |||||||||
The reduction in inventories for company is largely attributable to the lower mobile device stock.
An estimated amount of R193 million (2014: R153 million) included in inventories will be used for Telkom’s network expansion in the 2016 financial year of which R137 million was purchased in the current financial year.
The decrease in write-down of inventories is mainly due to utilisation of the write-off.