At year end, on the $30$ June $2023,$ Ramco still owed their Russian Supplier USD $12000,$ which was to be repaid on $30$ July $2023.$ After a long consultative process due to fear that the Rand $($ZAR$)$ would devalue, with the approval of the board, the financial manager had taken out a $3$ month forward exchange contract from Islamic Bank on $1$ May $2023$ at a forward rate of R$18\mathrm{.}20.$

On the $30$ June $2023$ Islamic Bank was offering the following forward exchange contracts

$$ Three month forward contract at a rate of R$18\mathrm{.}95/$USD

$$ One month forward contract at a rate of R$18\mathrm{.}03/$ USD Exchange rates: Electric lawnmowers purchases for the year:

$1$ August $2022$ $$15000$

$1$ February $2023$ $$35000$

$1$ May $2023$ $$12000$

The following spot rates were applicable:

$1$ August $2022$ R$17,50$

$1$ February $2023$ R$17,89$

$1$ May $2023$ R$18,53$

$30$ June $2023$ R$18,20$

Average exchange rate for $2023$ year of assessment R$18,35$

REQUIRED:

Calculate the income tax consequences of Ramco$$ s foreign exchange exposure at $30$ June $2023.$ The exchange rates in part A are still relevant. Use legislation to support your answer where applicable.