Annual Financial Statements


Financial Statements for the year ended 31 December 2002


Notes to the Financial Statements
Notes 1 - 10 to the Financial Statements
 
1.  PROPERTY, PLANT
 AND EQUIPMENT
 
 (Rmillion)
Group Total Land Plant and Vehicles Capitalised Capital
and equipment and other leased work in
buildings plant
 and
progress
vehicles
Restated carrying 
    value at beginning
    of year
4 149 759 3 036 188 14 152
Additions 223 16 109 32 66
Disposals (18) (13) (3) (1) (1)
Depreciation (170) (12) (121) (34) (3)
Transfers (10) 71 23 (84)
Currency alignment (80) (55) (20) (3) (1) (1)

Carrying value at
   end of year
4 104 685 3 072 205 9 133

Comprising:
  At cost 5 287 790 3 922 397 45 133
  Accumulated 
     depreciation
1 183 105 850 192 36

4 104 685 3 072 205 9 133

 
Company Total Land Plant and Vehicles Capitalised Capital
and equipment and other leased work in
buildings plant
and
progress
vehicles
Restated carrying
    value at beginning
    of year
1 847 305 1 323 128 8 83
Additions 176 8 62 12 94
Disposals (14) (13) (1)
Depreciation (120) (4) (86) (29) (1)
Transfers 44 18 (62)

Carrying value at 
   end of year
1 889 296 1 342 129 7 115

Comprising:
      At cost 2 759 346 1 988 281 29 115
      Accumulated 
      depreciation
870 50 646 152 22

1 889 296 1 342 129 7 115

   
The register of land and buildings is available for inspection at the company's registered office.
   

2.  GROWING CROPS (Rmillion) Group Company
2002 2001 2002 2001
Reconciliation of
   carrying value:
Restated balance
   at beginning of year
165 132 99 82
Gain arising from
   physical growth and
   price changes 16 30 9 22
Net decrease due
    to reduced area
   under cane (2) (2) (8) (5)
Currency alignment (11) 5

Carrying value
   at end of year
168 165 100 99

Area under
   cane (hectares)
      South Africa 14 802 17 578 14 802 17 578
      Mozambique 7 570 6 502
      Swaziland 3 754 3 474

26 126 27 554 14 802 17 578

 

3. LONG-TERM
   RECEIVABLE

   (Rmillion)
Group Company
2002 2001 2002 2001
Advances to an export
   partnership
210 210 210 210

The company participates in an export partnership engaged in the construction of luxury vessels in order to foster the use of aluminium plate in marine applications.
 

4. GOODWILL (Rmillion) Group
2002 2001
At cost 49 49

Accumulated
   amortisation
       Balance at beginning
          of year
7 4
       Current charge 2 3

Balance at end of year 9 7

Carrying value at
   end of year
40 42

Goodwill is amortised
   over 20 years.
 

5. INVESTMENTS (Rmillion) Group Company
2002 2001 2002 2001
Associate:
The carrying value of the
   Group's 49% interest in
Açucareira de Xinavane, SARL
   (Mozambique) comprises:
        Unlisted shares 20 20
        Loan 72 84
        Cumulative share of
          post-acquisition deficits
(68) (53)
        Balance at beginning
          of year
(53) (26)
        Movement in currency
          translation reserve
21 (7)
        Loss for the year (36) (20)

Book value 24 51

Directors' valuation 24 51

Net assets and results
    of associate:
  Property, plant and
    equipment
460 582
  Current assets 34 28
  Current liabilities (103) (76)
  Borrowings (422) (515)

(31) 19
        Other shareholders'
        interest
55 32

        Group interest 24 51

        Revenue 104 9

        Earnings/(loss) before
          depreciation
32 (24)
        Depreciation (30) (4)
        Foreign exchange
          (loss)/gain
(43) 13

        Loss before interest (41) (15)
        Interest paid (33) (26)

        Loss for the year (74) (41)
        Other shareholders'
          interest
38 21

        Group share of loss (36) (20)

Other investments:
        Unlisted shares at
          fair value
2 2
        Loans 3 3 2 2

        Book value 5 5 2 2

Carrying value of
   investments
29 56 2 2

A schedule of unlisted investments is available for inspection at the company's registered office.
 

6.   DERIVATIVE INSTRUMENTS (Rmillion)
The fair value of derivative
  instruments at year end was:
Group Company
2002 2001 2002 2001
Forward exchange
  contracts -
  hedge accounted
(86) 106 24 (66)
Forward exchange
  contracts - not
  hedge accounted
(2) 5 (2) 5
Options (12) (5) (12) (24)
Futures contracts (35) 80 (35) 77

(135) 186 (25) (8)

Comprising:
      Derivative assets 51 308 39 89
      Derivative liabilities (186) (122) (64) (97)

(135) 186 (25) (8)

The book value of other financial instruments approximates fair value with the exception of the fixed rate debt of R1 096 million (2001 - R1 035 million) which will be discharged during 2004. The fair value of this fixed rate debt is R1 155 million (2001 - R1 243 million) based on a discounted cash flow calculation using current market interest rates for loans with similar terms and credit risk.

Further details on derivative instruments are set out in note 28.

 
7.  SUBSIDIARIES AND JOINT VENTURES (Rmillion) Company
2002 2001
Shares at cost, less amounts written off 409 409
Indebtedness by 720 711
Indebtedness to (490) (321)

639 799

The Group's proportionate share of the assets, liabilities and post-acquisition reserves of joint ventures, which comprise in the main, Hulett Aluminium, is included in the consolidated financial statements as follows:
Property, plant, equipment and investments 1 998 2 211
Current assets 650 687
Less: Current liabilities (225) (287)

Capital employed 2 423 2 611
Less: Borrowings (567) (871)
Post-acquisition reserves (1 168) (1 099)
Deferred tax, provisions
    and derivative instruments
(639) (484)
Minority interests in subsidiaries (6) (6)

Interest in joint ventures 43 151

The Group's proportionate share of the trading results of the joint ventures is as follows:
  Revenue 1 625 1 270

  Earnings for the year 61 77
  Tax (17) (31)
  Minority shareholder's interest 4

  Total net earnings 44 50

The Group's proportionate share of cash flows of the joint ventures is as follows:
  Cash flows from operating activities 76 149
  Net cash used in investing activities 3 (106)

  Net movement in cash resources 79 43

The aggregate values as at 31 December 2002 attributable to subsidiaries not included in the consolidated financial statements, which relate in the main to Triangle, translated at the official Zimbabwe dollar exchange rate, are as follows:
    2002     2001* 2002 2001*
Equity 393 513 Property, plant
Minority interests 46 50 and equipment 216 269
Deferred tax 138 151 Growing crops 334 286
Borrowings 3 4 Current assets 986 711
Current liabilities (956) (548)


580 718 580 718


Revenue 2 180 1 246 Total net earnings 117 235


* Restated to conform to new Group accounting policies.

  
8. INVENTORIES (Rmillion) Group Company
2002 2001 2002 2001
Raw materials 152 195 55 51
Work in progress 111 92 4 7
Finished goods 846 675 698 555
Consumable stores 98 84 65 54
Development properties 256 284

1 463 1 330 822 667


   
9. SHARE CAPITAL (Rmillion)
2002 2001
Authorised:
   150 000 000 ordinary
      shares of R1 each
150 150

Issued and fully paid:
   101 351 797
    (2001 - 101 124 897)
101 101

Unissued:
Under option to employees, for a period of ten years from date granted, to subscribe for 5 957 600 shares at an average price of R39,50 per share (2001 ­ 4 868 300 shares at R36,55 per share).
Under control of directors for the purposes of the company's share incentive scheme 4 177 580 shares (2001 ­ 5 244 189 shares).
Under control of directors in terms of a shareholders' resolution 38 513 023 shares (2001 ­ 38 762 614 shares).
 
Details of share options are set out in note 22.
 

10. DEFERRED TAX (Rmillion) Group Company
2002 2001 2002 2001
Restated balance at
   beginning of year
912 748 306 295
      Accounted for in equity 25 (22) 25 (20)
      Prior years (10) 16 (13) (4)
      Currency alignment (5) 3
      Foreign tax rate change (2)
      AC 133 adjustment 2
 
Current year charge on:
      Earnings before
         exceptional items
92 176 91 44
      Exceptional items (2) (9) (2) (9)

Balance at end of year 1 012 912 407 306

Comprising temporary
   differences relative to:
      Property, plant
         and equipment
865 847 346 355
      Growing crops 42 49 30 29
      Export partnership 210 210 210 210
      Current assets 61 71 12 18
      Current liabilities (103) (106) (89) (103)
      Tax losses (128) (241) (105) (209)
      Other 65 82 3 6

1 012 912 407 306