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Notes to the consolidated financial statements 1. General information 2. Summary of significant accounting policies 3. Financial risk management 4. Critical account estimates and judgments 5. Segment information 6. Property, plant and equipment 7. Intangible assets 8. Investment in associates 9. Investment in joint ventures 10. Investment in subsidiaries 11. Future fuel supplies 12. Loans receivable 13. Deferred income tax 14. Financial instruments 15. Trade and other receivables 16. Inventories 17. Share capital 18. Assets and liabilities classified as held-for-sale 19. Deferred income 20. Retirement benefit obligations 21. Provisions 22. Trade and other payables 23. Revenue 24. Other net gains 25. Work performed by the entity and capitalised 26. Employee benefit expense 27. Depreciation and amortisation expense 28. Net impairment loss reversed/(impairment loss) 29. Other expenses 30. Interest expense 31. Other operations 32. Cash generated from operations 33. Guarantees and contingent liabilities 34. Commitments 35. Business combinations 36. Related party transactions 37. Events after the balance sheet date 38. Share-based payments 39. Restatement of comparatives

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Notes to the financial statements

For the 12-month period ended 31 March 2006

			Group		Company
			March	March	March	March
			2006	2005	2006	2005
		Note	Rm	Rm	Rm	Rm
8.	INVESTMENT IN ASSOCIATES
	Balance at beginning of the period		245	191	4	4
	Share of profit1		21	57	–	–
	Provision for impairment		(2)	(12)	–	–
	Reversal of impairment	28	84	–	84	–
			(276)	9	(83)	–
	Balance at end of the period		72	245	5	4
	Directors’ valuation		73	270	35	27
	Investments in associates at 31 March 2006 include goodwill of R nil million (2005: R nil million). Investments in the company are accounted for at cost and the since acquisition share of profits are accounted for in the group. The group’s share of the results of its principal associates, all of which are unlisted, and its share of the assets (including goodwill and liabilities) are as follows:
	Country  Assets Liabilities Revenues Profit %    of incor-  interest    poration  held  Name Rm  Rm Rm Rm Rm     Group 2006 Directly held PN Energy Services (Pty) Limited2 South Africa  19 2 14 4 50  Transitional Electricity Distributor (Pty) Limited2 South Africa  – – – –  50  Uitenhage Electricity Supply Company (Pty) Limited3 South Africa  20 13 71 2 33    Indirectly held Arivia.kom (Pty) Limited4 South Africa  – – 611 7 –  Elgas SARL2 Mozambique  – – – – 25  Global Electricity Services Company2 Libya  – – – – 49  Ash Resources (Pty) Limited2 South Africa  22 8 50 6 25  Clinker Supplies (Pty) Limited South Africa  4 2 11 2 50  Umeme Limited2 Uganda  – – – – 44    65 25 757 21   2005 Directly held PN Energy Services (Pty) Limited2 South Africa  16 2 16 6 50  Transitional Electricity Distributor (Pty) Limited2 South Africa  – – – – 50  Uitenhage Electricity Supply Company (Pty) Limited3 South Africa  28 14 69 6 33    Indirectly held Arivia.kom (Pty) Limited4 South Africa  421 186 717 43 45  Elgas SARL2 Mozambique  – – – – 25  Global Electricity Services Company2 Libya  – – – – 49  Ash Resources (Pty) Limited2 South Africa  11 3 31 2 25  Clinker Supplies (Pty) Limited South Africa  4 2 9 – 50  Umeme Limited2 Uganda  – – – – 44    480 207 842 57

Where the above entities’ financial year ends differ with that of Eskom, financial information has been obtained from published information or management accounts as appropriate.
1.   Share of profit is after tax.
2.   Year end is 31 December.
3.  Year end is 30 June.The financial results are immaterial.
4.  Arivia.kom (Pty) Limited was an associate for the period 1 April 2005 to 28 February 2006 and became a subsidiary on 1 March 2006.

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