Notes to the Consolidated Financial Statements
 
 
1. Basis of preparation
The consolidated financial statements present the financial record for the years ended
31 March 2003 and 31 March 2002.

The subsidiary and associated undertakings in the group operate in the local currency of the country in which they are based. From a functional perspective, the group regards these operations as being US dollar-based as the transactions of these entities are, insofar as is possible, evaluated in US dollars. In management accounting terms all companies report in
US dollars.

The directors of the company regard the US dollar as the functional currency of the group, being the most representative currency of its operations. Therefore the consolidated financial statements are presented in US dollars. The exchange rates of rand to US dollar used in preparing the consolidated financial statements were as follows:
 
Weighted
Closing
   
average rate
rate
Year ended 31 March 2002
9.71
11.40
Year ended 31 March 2003
9.50
7.91
     
The weighted average exchange rates have been calculated based on an average of the exchange rates during the relevant year and weighted according to the turnover of the group's businesses.