Please outline the following questions about Eskom Kusile Power Station:
1. Background of the company?
2. their manufacturing process in term of electricity generation?
3. How do they prepare their SARS account and payment?
1. Background of the company
Eskom is a South African electricity public utility company, considered to be one of the largest power producers in Africa. It was established in 1923 and has since played a crucial role in providing electricity to South Africa and neighboring countries. Eskom generates around 95% of the electricity consumed in South Africa, operating multiple power stations across the country. The company has faced several challenges in recent years, including financial difficulties and issues related to governance and corruption.
2. Manufacturing process in terms of electricity generation
The Kusile Power Station is one of Eskom's major projects, aimed at addressing the growing electricity demand in South Africa. It is a coal-fired power plant located near eMalahleni in the Mpumalanga province. The power station adopts a supercritical steam generator technology, which allows for more efficient electricity generation by operating at higher temperatures and pressures.
The manufacturing process at the Kusile Power Station involves the following steps:
- Coal is delivered to the power station and stored in coal yards.
- The coal is then pulverized into a fine powder and mixed with hot air to create a combustible air-coal mixture.
- The mixture is burned in a boiler, producing high-pressure steam.
- The steam passes through a series of turbines, which convert the heat energy into mechanical energy, driving the rotation of the turbines.
- The rotating turbines are connected to generators, where mechanical energy is converted into electrical energy.
- The generated electricity is then transmitted through a network of transmission lines to supply the demand in various regions.
3. Preparation of SARS (South African Revenue Service) accounts and payments
As a South African company, Eskom is required to comply with tax regulations set by the South African Revenue Service (SARS). The company follows a process to prepare its SARS accounts and make tax payments:
- Gathering of financial information: Eskom collects and organizes all the necessary financial information, including revenue, expenses, assets, liabilities, and other relevant tax-related data.
- Preparation of financial statements: Based on the gathered information, Eskom prepares financial statements, such as income statements, balance sheets, and cash flow statements, following internationally accepted accounting standards.
- Calculation of tax liability: Eskom calculates its tax liability by applying the applicable tax rates and regulations provided by SARS to its financial statements. This involves determining taxable income, taking into account various deductions and credits allowed.
- Submission of tax returns: Eskom completes and submits its tax returns to SARS, disclosing the calculated tax liability and other relevant information. This process is generally done annually.
- Payment of taxes: Once the tax liability is determined, Eskom makes the necessary tax payments to SARS within the specified timelines. This may involve making estimated tax payments throughout the year and settling any outstanding amounts owed.
It's important to note that the specific details of Eskom's SARS accounts and tax payments may vary based on the applicable regulations and requirements set by SARS from time to time.