Please review my answer on Value Added statement worth 18 marks... Value added statement (VAS) Ruan / Olive [18 marks] BLUE LABEL TELECOMS LTD VALUE ADDED STATEMENT - 31 MAY 2021- 2022 2022 R'000 2021 R'000 Turnover plus other income / value add* 17 887 255 18 924 063 Bought-in material and goods -15 373 212 -16 827 545 Value added 2 514 043 2 096 518 Distributed: Salaries and wages 780 255 637 387 Interest 201 225 131 949 Minority interest 64 918 47 409 Dividends 0 0 Tax** 320 262 258 952 Depreciation 110 798 181 113 Other expenses - socio economic development 17 548 12 052 Retention / retained earnings (profit - dividends) *** 1 019 037 827 656 Total distribution 2 514 043 2 096 518 Table 10: BLT's value-added statement for 2022 and 2021 *Interest income included **Deferred tax added back ***Profit from joint venture excluded and minority interest removed Blue Label Telecoms has compiled a Value-Added Statement and can be noted in Appendix A. The Value-Added Statement compiled by group 10 corresponds to the IRESS version. There is however a discrepancy in the net income for the year 2021 from the income statement in IRESS versus the amount used in the retention calculation found in the VAS R852 695 found in 2021 income statement versus R878 016 reported in the IRESS VAS and the integrated report of Blue Label Telecoms. Contribution to GDP and labour productivity Year 2022 2021 Change year on year No of employees 1566 2505 -939 Average salary R 498 247,13 R 254 445,91 R 243 801,22 VA per employee R 1 605,39 R 836,93 R 768,46 % VA Change year on year 16,61% Average inflation 2022 6,90% 4,50% Table 11: BLT's Contribution to GDP and labour productivity From the table, it can be noted that the year-on-year growth in value added is 16.61% and surpasses the average inflation rate for South Africa for 2022 by 9.71% thus contribution positively to GDP growth in South Africa. Labour productivity has also increased between 2021 and 2022 mainly due to a reduced number of employees and an increased value added. If employees remained unchanged from 2021 and 2022, there would have still been an increase in value-add year on year as can be noted in the table below. Contribution to GDP and labour productivity labour force unchanged Year 2022 2021 Change year on year No of employees 2505 2505 0 Average salary R 311 479,04 R 254 445,91 R 57 033,13 VA per employee R 1 003,61 R 836,93 R 166,68 % VA Change year on year 16,61% Average inflation 2022 6,90% 4,50% Table 12: Contribution to GDP and labour productivity labour force unchanged

Blue Label Telecoms has compiled a Value-Added Statement and can be noted in Appendix A. The ValueAdded Statement compiled by group 10 corresponds to the IRESS version. There is however a discrepancy in the net income for the year 2021 from the income statement in IRESS versus the amount used in the retention calculation found in the VAS - R852 695 found in 2021 income statement versus R878 016 reported in the IRESS VAS and the integrated report of Blue Label Telecoms. Table 11: BLT's Contribution to GDP and labour productivity From the table, it can be noted that the year-on-year growth in value added is 16.61% and surpasses the average inflation rate for South Africa for 2022 by 9.71% thus contribution positively to GDP growth in South Africa. Labour productivity has also increased between 2021 and 2022 mainly due to a reduced number of employees and an increased value added. Table 10: BLT's value-added statement for 2022 and 2021 *Interest income included **Deferred tax added back ***Profit from joint venture excluded and minority interest removed Blue Label Telecoms has compiled a Value-Added Statement and can be noted in Appendix A. The ValueAdded Statement compiled by group 10 corresponds to the IRESS version. There is however a discrepancy in the net income for the year 2021 from the income statement in IRESS versus the amount used in the retention calculation found in the VAS - R852 695 found in 2021 income statement versus R878 016 reported in the IRESS VAS and the integrated report of Blue Label Telecoms. Table 11: BLT's Contribution to GDP and labour productivity From the table, it can be noted that the year-on-year growth in value added is 16.61% and surpasses the average inflation rate for South Africa for 2022 by 9.71% thus contribution positively to GDP growth in South Africa. Labour productivity has also increased between 2021 and 2022 mainly due to a reduced number of employees and an increased value added. Table 10: BLT's value-added statement for 2022 and 2021 *Interest income included **Deferred tax added back ***Profit from joint venture excluded and minority interest removed