NOTES TO THE GROUP FINANCIAL STATEMENTS

Note 1 - Significant accounting policies Note 2 - Revenue Note 3 - Profit before tax Note 4 - Directors' remuneration Note 5 - Share-based payments Note 6 - Tax Note 7 - Basic, headline and diluted earnings per share Note 8 - Dividends Note 9 - Intangible assets Note 10 - Property, plant and equipment Note 11 - Operating leases Note 12 - Participation in export partnerships Note 13 - Deferred tax assets Note 14 - Investment in associate Note 15 - Loans Note 16 - Inventory Note 17 - Trade and other receivables Note 18 - Net cash and cash equivalents Note 19 - Share capital Note 20 - Treasury shares Note 21 - Borrowings Note 22 - Retirement benefits Note 23 - Trade and other payables Note 24 - Provisions Note 25 - Commitments Note 26 - Operating segments Note 27 - Related party transactions Note 28 - Financial instruments Note 29 - Change in financial period cut
off date Note 30 - Non-controlling interest Note 31 - Early adoption and other reclassifications Note 32 - Accounting standards and interpretations to be adopted in future periods

Pick n Pay Group of Companies financial statements
Notes to the Group financial statements
for the period ended

    Pick n Pay Stores Group   Pick n Pay Holdings Group
      364 days to  
2 March  
2014  
Rm  		 368 days to  
3 March  
2013  
Rm  		     364 days to  
2 March  
2014  
Rm  		 368 days to  
3 March  
2013  
Rm  
6.   TAX                
6.1   Tax recognised in the statement of comprehensive income                
  Tax                
  Normal tax     309.3   316.8       309.3   316.8  
  – current period     306.7   280.4       306.7   280.4  
  – prior period under provision     2.6   36.4       2.6   36.4  
  Deferred tax (note 13)     (59.9)   (58.5)       (59.9)   (58.5)  
      249.4   258.3       249.4   258.3  
  Tax recognised in other comprehensive income                
  Tax effect of remeasurement of retirement benefit asset (note 13)     (22.2)   (0.6)       (22.2)   (0.6)  
6.2   Tax recognised directly in statement of changes in equity                
  Tax effect of share incentive transactions recorded directly in equity     (10.7)   (22.0)       (10.7)   (22.0)  
6.3   Tax paid                
  Owing – beginning of period     82.8   99.6       82.8   99.6  
  Recognised in statement of comprehensive income     309.3   316.8       309.3   316.8  
  Recognised in statement of changes in equity     (10.7)   (22.0)       (10.7)   (22.0)  
  Owing – end of period     (111.2)   (82.8)       (111.2)   (82.8)  
  Total tax paid     270.2   311.6       270.2   311.6  
      %   %       %   %  
6.4   Statutory tax rate reconciliation                
  South African statutory tax rate     28.0   28.0       28.0   28.0  
  Exempt income     (5.2)   (3.9)       (5.2)   (3.9)  
  Non-deductible share options expense     2.4   3.0       2.4   3.0  
  Other non-deductible expenditure     5.6   3.9       5.6   3.9  
  Capital gains tax     —   0.4       —   0.4  
  Net prior year (over)/under provisions     (0.9)   0.5       (0.9)   0.5  
  Effective tax rate     29.9   31.9       29.9   31.9