Statements of cash flowsfor the year ended 31 March 2022

Group

Company

Notes

31 March
2022
Rm

Restated
31 March
2021¹
Rm

31 March
2022
Rm

Restated
31 March
2021¹
Rm

Cash flows from operating activities

8 152

10 941

8 578

8 889

Cash receipts from customers

41 614

43 790

38 340

39 646

Cash paid to suppliers and employees

(31 728)

(29 407)

(28 923)

(28 192)

Cash generated from operations

9 886

14 383

9 417

11 454

Interest received

235

332

113

243

Dividend received

–

402

Finance charges paid

(1 188)

(1 291)

(1 317)

(1 434)

Taxation paid

(764)

(2 194)

–

(1 112)

Repayment of derivatives – FECs

(114)

(158)

(114)

(158)

Proceeds from derivatives – FECs

126

Cash generated from operations before dividend paid

8 157

11 198

8 581

9 145

Dividend paid

(5)

(257)

(3)

(256)

Cash flows utilised for investing activities

(9 298)

(8 294)

(8 798)

(7 402)

Proceeds on disposal of property, plant and equipment and intangible assets

Additions to assets for capital expansion

(8 031)

(8 311)

(7 124)

(7 598)

Loans advanced to subsidiaries

–

(500)

–

Loans repaid by subsidiaries

–

128

Investments made by FutureMakers

(53)

(54)

–

Investment in SA SME Fund

(9)

–

(9)

–

Cash received from FutureMakers

–

Repayment of derivatives – FECs

(267)

(477)

(267)

(477)

Proceeds from derivatives – FECs

188

378

188

378

Restricted cash

22.2

(1 142)

–

(1 142)

–

Withdrawal from the Absa sinking fund investment

–

164

–

164

Cash flows from financing activities

(617)

(2 371)

(1 156)

(2 679)

Loans raised

1 150

268

1 150

268

Loans repaid

(193)

(1 400)

(193)

(1 400)

Purchase of shares for the Telkom and subsidiaries long-term incentive share scheme

(393)

(285)

(393)

(285)

Repayment of lease liability

(1 076)

(856)

(1 615)

(1 164)

Repayment of derivatives – interest rate swaps

(105)

(98)

(105)

(98)

Net (decrease)/increase in cash and cash equivalents

(1 763)

276

(1 376)

(1 192)

Net cash and cash equivalents at 1 April

5 002

4 726

2 041

3 233

Net cash and cash equivalents at the end of the year

22.1

3 239

5 002

665

2 041

The Group restated the statement of cash flows to correctly classify repayments of R158 million and proceeds of R126 million in respect of FECs relating to inventory purchases, and R477 million of repayments and R378 million of proceeds in respect of the FECs relating to capital expenditure from financing activities to operating activities and investing activities, respectively. Due to the reclassification, the FEC fair value movements which form part of inventory working capital movement changed, as well as the FEC fair value movement capitalised to property, plant and equipment. This resulted in a decrease of R139 million in cash paid to suppliers and employees and an increase in additions to assets for capital expansion of R139 million. The change in classification of the cash flows did not impact the net cash and cash equivalents balance at the end of the reporting period.