Annual Financial Statements


Financial Statements for the year ended 31 December 2003


Notes 11 - 20 to the Financial Statements

 
11.BORROWINGS (Rmillion) GroupCompany
2003 2002 2003 2002
Short-term 90229682971
Bank overdraft 962116

99831784571
Long-term371614183

1 369931845254

Long-term borrowings comprise:
Effective
interest
rate (%)
Secured:
SA Rand
    Finance leases (refer to note 27)11,3-15,2 7 11

Unsecured:
SA Rand
    Repayable 2004 15,0 103 183 103 183
    Repayable 2004/2008 12,7 165 187
Foreign
    Repayable 2004/2009Libor + 0,4 174265
    Repayable 2004/2024 0-12,0 98129

540764103183

Total long-term borrowings 547775103183
Less: Current portion included
  in short-term borrowings 176161103

371614183

Plant and machinery with a book value of R46 million are encumbered as security for the secured finance lease obligations and as security for certain short-term borrowings of R14 million.

Unsecured Rand denominated long-term loans of R268 million (2002 - R370 million) are shown net after set- off of related investments totalling R1 190 million (2002 - R1 016 million).

The foreign Libor linked unsecured loans are repayable in US dollars and amount to US $28 million (2002 - US $31 million). These loans are recorded at the ruling price at year end and the foreign currency risk is covered by forward exchange contracts. The other unsecured foreign loans, repayable in Mozambique meticais, are also recorded at the ruling price at year end but it has not been possible to cover the foreign currency risk.

Summary of future loan repayments by financial year:

Year 2005 2006 2007 2008 2009 2010Thereafter
Rmillion79848650175 50

In terms of the company's articles of association the borrowing powers of the Group are limited to R6,3 billion.
  


 

 
12.PROVISIONS (Rmillion) GroupCompany
2003200220032002
Post-retirement medical aid obligations (note 23) 211199177170
Retirement gratuity obligations (note 23) 46434139
Other 3 3 3 3

260245221212


 
13. TRADE AND OTHER PAYABLES (Rmillion) GroupCompany
2003200220032002
Accounts payable 9981 030483560
Maize obligations - interest bearing 553446553446
 

1 5511 4761 0361 006


 
14.  UNDERLYING OPERATING PROFIT (Rmillion) GroupCompany
2003200220032002
Revenue 6 5596 103 4 406 4 102
Cost of sales (5 168)(4 444) (3 534) (2 942)
Administration expenses (712)(661) (515) (516)
Marketing and selling expenses (332)(301) (207) (184)
Other income 105121 69 68

Underlying operating profit 452818 219 528

Disclosable items:
Income from unlisted investments 11 1
Surplus on disposal of plant and equipment 21
Depreciation charged
- Buildings91244
- Plant and equipment178160*126125*
- Vehicles and other36372330
Management fees paid to subsidiaries 1020
Management fees paid to third parties 54
Technical fees paid 1615 16 15
Operating lease charges (property, plant and vehicles) 1311 107
Auditors' remuneration paid
- Fees 54 3 2
- Other services 111

 
15. DIVIDENDS RECEIVED FROM SUBSIDIARIES (Rmillion) GroupCompany
2003200220032002
Triangle 1971
Other subsidiaries 54137

197154137


* The capitalisation of major plant overhaul costs and the subsequent depreciation are now disclosed separately where they were previously set-off against each other. Consequently the disclosure of capitalised expenditure on property, plant and equipment and depreciation has been restated for 2002, both increasing by R39 million.

 
16.VALUATION ADJUSTMENTS ON FINANCIAL GroupCompany
INSTRUMENTS AND OTHER ITEMS (Rmillion)2003 2002 2003 2002
Maize procurement contracts (211) (20) (211) (20)
Translation of foreign currency:
- foreign cash holdings (80)(151)
- other (57)(15)(5)
Export receivables (33)(26)(7)(5)
Other financial instruments(17)(3)(7)9

(398) (215) (230) (16)


 
17.NET FINANCING COSTS (Rmillion) GroupCompany
2003 2002 2003 2002
Interest paid (438) (340) (386) (235)
Financial instrument income 174149174149
Realised gain on cash equivalent investment 43
Interest received - external 69573213
Interest received - subsidiaries 3033

(152) (134) (150) (40)


 
18.EXCEPTIONAL ITEMS (Rmillion) GroupCompany
2003 2002 2003 2002
Surplus on sale of property held as fixed assets 15963
Goodwill amortisation (3) (2)
Impairment of assets (2)(2)
Other (3)(1)(3)(1)
Exceptional items before tax7612
Tax (refer note 19)2222

Exceptional items after tax9834


 
19.TAX (Rmillion) GroupCompany
2003 2002 2003 2002
Tax on earnings before exceptional items:
    Current 20 20
  * Deferred (128)87(91)86
    Secondary tax on companies 29262926
    Prior years 4(9)(13)

(75)124(62)99

Tax on exceptional items:
    Deferred (2) (2) (2) (2)

 
Tax for the year (77) 122 (64) 97
Foreign tax included above 9 19


 
19.TAX continued GroupCompany
2003 2002 2003 2002
Normal rate of South African tax (relief)/charge (30,0%) 30,0% (30,0%)30,0%
Adjusted for:
Non-taxable income (73,1) (4,4) (81,5) (15,9)
Reserves of foreign subsidiaries(88,9)(4,6)
Assessed losses 3,6 (1,7)
Non-allowable expenditure 1,90,30,80,1
Secondary tax on companies 40,34,627,44,1
Capital gains33,522,7
Prior years 5,6 (1,7) (2,1)

Effective rate of tax (107,1%) 22,5% (60,6%) 16,2%

Tax losses of R763 million (2002 - R427 million) have been utilised to reduce deferred tax. No deferred tax asset has been raised in respect of the tax losses of a South African subsidiary where future profitability is
uncertain and a foreign subsidiary where some of the tax losses may not be utilised in the short-term and may expire in terms of applicable tax legislation.
 

Includes the reversal of R64 million relating to the reserves of foreign subsidiaries which will no longer be
taxable on repatriation to South Africa as a result of amended tax legislation.
 

 
20.HEADLINE (LOSS)/EARNINGS (Rmillion) Group
2003 2002
Total net (loss)/earnings (41)388
Less after tax effect of:
  * Realised gain on cash equivalent investment(42)
    Exceptional items (note 18) (9)(8)
    Surplus on disposal of plant and equipment (1)

Headline (loss)/earnings (93)380

* Previously accounted for directly in equity