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).