Notes to the summary financial statements continued for the year ended 31 March 2023 4. Commitments and contingencies The group is subject to commitments and contingencies, which occur in the normal course of business, including legal proceedings and claims that cover a wide range of matters. The group plans to fund these commitments and contingencies, should they materialise, out of existing facilities and internally generated funds. Commitments (a) Capital expenditure Commitments in respect of contracts placed for capital expenditure at 31 March 2023 amount to ZAR165.8m (FY22: ZAR273.6m). (b) Programme and film rights At 31 March 2023, the group had entered into contracts for the purchase of programme and lm rights. The group’s commitments in respect of these contracts amount to ZAR42.0bn (FY22: ZAR36.1bn). (c) Decoders At 31 March 2023, the group had entered into contracts for the purchase of decoders. The group’s commitments in respect of these contracts amount to ZAR0.8bn (FY22: ZAR1.5bn). (d) Assets pledged as security The group pledged property, plant and equipment with a net carrying value of ZAR4.9bn (FY22: ZAR5.6bn) as security against certain assets acquired in terms of lease liabilities. (e) Other commitments At 31 March 2023, the group had entered into contracts for the receipt of various services. These service contracts are for transmission services, computer and decoder support services, access to networks and contractual relationships with customers, suppliers and employees. The group’s commitments in respect of these agreements amount to ZAR2.7bn (FY22: ZAR3.4bn). Overview Introduction Understanding Phuthuma Nathi Understanding MultiChoice SA MultiChoice SA performance Financial review Corporate governance review Shareholder information Phuthuma Nathi Investments (RF) Limited Integrated annual report 2023 75
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