LENMED AIR 2019.pdf

22. Trade and other payables continued The assumptions used in determining the fair value of the SARs granted are summarised below: 3 4 5 Last traded price as at 28 February 2019 R3.56 R3.56 R3.56 Last traded price as at 28 February 2018 R3.11 R3.11 R3.11 Risk-free rate 8.71% 8.71% 8.71% Volatility 9% 9% 9% Dividend yield 0% 0% 0% Long term inflation 6% 6% 6% The risk-free rate of 8.71% (2018: 8.13%) has been assumed based on the prevailing return on a five-year RSA Government Retail Bond as at year end. The volatility of 9% (2018: 21%) was determined based on the historic volatility of the Group’s share price over the previous year. Group Figures in R’000 2019 Restated 2018 23. Provisions Carrying amount at the beginning of the year 47 666 36 376 Increase in accrual 8 980 11 290 Carrying amount at end of the year 56 646 47 666 Provisions are made up as follows: Bonus Provision 13 225 8 497 Leave pay provision 27 202 25 423 Other provisions 16 219 13 746 56 646 47 666 24. Business combination 24.1 Increase in investment in subsidiary 24.1.1 During the prior year the Group increased it’s investment in Lenmed Ethekwini Hospital and Heart Centre (Pty) Ltd (Ethekwini hospital) by acquiring 23.11% from the Industrial Development Corporation (IDC) for R313.3 million. This included both the shares and shareholders loans held by them. As at 28 February 2019, the Group owns of 76.96% of Ethekwini Hospital. Net asset value of Ethekwini hospital at 31 July 2017 – 429 901 Non-controlling interest of 23.11% – 99 350 Consideration paid – 310 608 Shareholder loan acquired – 34 256 Shares – 276 352 Full control reserve transferred to accumulated profits – 177 002 Acquisition-related costs Commission and legal costs – 2 863 25. Income tax paid Receivable/(Payable) at beginning of the year 13 350 (3 595) Expense for the year (53 242) (54 390) Adjustment for deferred tax 9 755 4 513 Deferred tax foreign currency translation adjustments (2 085) (768) Payable at end of year (10 389) (13 350) (42 611) (67 590) Notes to the consolidated annual financial statements continued CONSOLIDATED ANNUAL FINANCIAL STATEMENTS 114