The Directors have pleasure in submitting the annual financial statements of the Group for the year ended 31 March 2022.
The Directors confirm that Telkom complies with the provisions of the Companies Act and the laws of establishment, specifically relating to its incorporation; and it operates within conformity with its memorandum of incorporation and all relevant constitutional documents.
Telkom is an integrated communications and information technology service provider for South Africa.
Profit for the year ended 31 March 2022 was R2 631 million (March 2021: R2 428 million) representing basic earnings per share of 536.6 cents per share (March 2021: 489.9 cents per share) and headline earnings per share of 575.3 cents per share (March 2021: 522.2 cents per share). Full details of the financial position and results of the Group are set out in the accompanying Company and Group annual financial statements.
Telkom is in its second year of the three-year dividend suspension period. The Board remains committed to reinstate the dividend policy at the end of FY2023 in line with the Board commitment on suspension of the dividend policy in FY2021. The Board is reviewing the dividend policy.
Particulars of the material subsidiaries of the Group are set out in note 40 of the accompanying Group annual financial statements.
The attributable interest of the Group in the after-tax earnings of its subsidiaries for the year ended 31 March 2022 were:
| 2022 Rm |
2021 Rm |
|
| Aggregate amount of profit after taxation | 1 914 | 2 241 |
|---|
Details of the authorised, issued and unissued share capital of the Company as at 31 March 2022, are contained in note 23 of the accompanying annual financial statements.
Telkom purchased 8 416 809 shares from the market through Rossal No 65 (Pty) Ltd for the purpose of the employee share plan.
Telkom's Directors may mortgage or encumber Telkom's property or any part thereof and issue debentures, whether secured or unsecured, whether outright or as security for debt, liability or obligation of Telkom or any third party. For this purpose, the borrowing powers of Telkom are unlimited, but are subject to the restrictive financial covenants as well as specific restrictive clauses in the current funding arrangements.
Details of the Company and Group’s capital commitments on property, plant and equipment as well as intangible assets are set out in notes 11 and 13 of the accompanying Group annual financial statements.
Significant events and transactions during the year under review are disclosed in note 41 of the accompanying Group annual financial statements.
Events subsequent to the reporting date are set out in note 42 of the accompanying Group annual financial statements.
The following changes occurred in the composition of the Board of Directors from 1 April 2021 to the date of this report:
| Appointments | Date |
| O Ighodaro | 1 July 2021 |
| EG Matenge-Sebesho | July 2021 |
| S Taukobong | 1 January 2022 |
| SH Yoon | 1 May 2022 |
| Resignations | Date |
| S Maseko | 31 December 2021 |
| AN Samuels | 1 July 2021 |
The Board of Directors at the date of this report is as follows:
Details of each Director may be found in our integrated report.
At 31 March 2022, the following Directors held a beneficial interest in the shares of Telkom SA SOC Ltd:
| Executive | |
| S Maseko* | 52 520 |
| S Taukobong | 22 200 |
| DJ Reyneke | – |
| Non-executive | |
| KW Mzondeki | 748 |
| * | Resigned on 31 December 2021 and shares are held through the Bambanani Family Trust. |