Annual Financial Statements


Financial Statements for the year ended 31 December 2004


Notes to the Financial Statments (11 - 20)

 

11.DEFERRED TAX (Rmillion)      Group      Company
2004 2003 2004 2003
Balance at beginning of year 8661 006 296 401
    Accounted for in equity 9(12) 8 (12)
    Currency alignment 1(2)
Income statement:
    Current year relief on:
       *Earnings before exceptional items (24)(128) (30) (91)
         Exceptional items (3)(2) (3) (2)
    Prior years' charge 54 5
Balance at end of year 854 866 276 296
Comprising temporary differences relative to:
    Property, plant and equipment 886888356 362
    Growing crops 3641 23 28
    Export partnership 210210 210 210
    Current assets 585155
    Current liabilities (108)(112)(90) (95)
    Tax losses (223)(229) (214) (225)
    Other (5) 17 (14) 11
854 866 276 296
* Included in the current year deferred tax relief is an amount of R10 million relating to the tax loss of a South African subsidiary that was previously not recognised due to uncertainty regarding its future recoverability.
 
12.BORROWINGS (Rmillion)         Group      Company
    2004 2003 2004 2003
 Short-term   1 096 9021 002829
 Bank overdraft   29 96  16
    1 125998 1 002845
 Long-term   255 371
    1 380 1 3691 002 845
 Long-term borrowings comprise:   
 Effective  
 interest  
 rate (%)  
 Secured:
 SA Rand
 Finance leases (refer to note 28) 13,1   4 7
 Unsecured:
 SA Rand
 Repayable 2005/2008 12,5  138 165
 Repaid 2004    103  103
 Foreign
 Repayable 2005/2009 Libor + 0,4  120 174
 Repayable 2010/2014 nil  5698 
    314 540  103
 Total long-term borrowings   318 547103
 Less: Current portion included   
 in short-term borrowings   63 176 103
    255 371  0
 Plant and machinery with a book value of R44 million (2003 - R46 million) are encumbered as security for the secured finance lease obligations and as security for certain short-term borrowings of R8 million (2003 - R14 million).

Unsecured Rand denominated long-term loans of R138 million (2003 - R268 million) are shown net after set-off of related investments totalling R152 million (2003 - R1 190 million).

The foreign Libor linked unsecured loans are repayable in US dollars and amount to US $23 million (2003 - US $28 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 2006 2007 2008 2009 2010 2011Thereafter
      Rmillion 68 77 41 11 12 12 34
 

In terms of the company's articles of association the borrowing powers of the Group are limited to R6,6 billion.
 

13.PROVISIONS (Rmillion)      Group      Company
2004 200320042003
Post-retirement medical aid obligations (note 24) 221211184 177
Retirement gratuity obligations (note 24) 494643 41
Other 1 3 1 3
271 260228 221
 
14. TRADE AND OTHER PAYABLES (Rmillion)      Group      Company
2004 200320042003
Accounts payable 953998464 483
Maize obligations - interest bearing 218553218 553
1 171 1 551682 1 036
 
15. UNDERLYING OPERATING PROFIT (Rmillion)      Group     Company
200420032004 2003
Revenue 6 2986 5593 970 4 406
Cost of sales (4 972)(5 168)(3 228) (3 534)
Administration expenses (685)(712)(446) (515)
Marketing and selling expenses (391)(332)(267) (207)
Other income 137105100 69
Underlying operating profit 387 452129 219
Disclosable items:
Income from unlisted investments 61 5
Surplus on disposal of plant and equipment 42 21
Depreciation charged:
    Buildings 11944
    Plant and equipment 190178137 126
    Vehicles and other 303618 23
Management fees paid to subsidiaries 210
Management fees paid to third parties 45
Technical fees paid 111611 16
Operating lease charges (property, plant and vehicles) 141310 10
Auditors' remuneration:
    Fees 5533
    Other services 1111
 
16. DIVIDENDS RECEIVED FROM SUBSIDIARIES (Rmillion) Group Company
2004 200320042003
Triangle 5119
Other subsidiaries   8854
51 19 88 54
 
17. VALUATION ADJUSTMENTS ON FINANCIAL Group Company
INSTRUMENTS AND OTHER ITEMS (Rmillion) 2004 2003 2004 2003
Maize procurement contracts 18 (211) 18 (211)
Translation of foreign currency:
   Foreign cash holdings (47) (80)
   Other (22) (57) (5)
Export receivables 3 (33) 2 (7)
Other financial instruments (3) (17) (7)
(51) (398) 20 (230)
 
18. EXCEPTIONAL ITEMS (Rmillion) Group Company
2004 2003 2004 2003
Surplus on sale of property 18 15 26 6
Estate closure costs (10) (3) (10) (3)
Goodwill amortised (2) (3)
Recovery of loan to subsidiary, previously
  written-off by the holding company 46
Impairment of assets   (2)   (2)
Exceptional items before tax 6 7 62 1
Tax (refer note 20) 3 2 3 2
Exceptional items after tax 9 9 65 3
 
19. NET FINANCING COSTS (Rmillion) Group Company
2004 2003 2004 2003
Interest paid - external (275) (438)  (208) (386)
Financial instrument income 112 174 112 174
Interest received - external 70 69 7 32
Interest (paid)/received - subsidiaries (11) 30
Realised gain on cash equivalent investment 43
(93) (152) (100) (150)
 
20. TAX (Rmillion) Group Company
2004 2003 2004 2003
Earnings/(loss) before exceptional items:
   Current 51 20
   Deferred (24) (128) (30) (91)
   Secondary tax on companies 12 29 12 29
   Prior years 5 4 4  
44 (75) (14) (62)
Exceptional items:
   Deferred (3) (2) (3) (2)
   Tax for the year  41 (77) (17) (64)
   Foreign tax included above 4 9
Normal rate of South African tax charge/(relief) 30,0(30,0) 30,0(30,0)
Adjusted for:
     Non-taxable income (23,2)(73,1) (58,0) (81,5)
     Reserves of foreign subsidiaries (88,9)
     Assessed losses of foreign subsidiaries (3,5) 3,6
     Non-allowable expenditure 0,81,9 1,00,8
     Secondary tax on companies 4,440,3 7,127,4
     Capital gains 4,733,5 7,722,7
     Prior years 1,85,6 2,4
Effective rate of tax 15,0 (107,1) (9,8) (60,6)
  Tax losses of R742 million (2003 - R763 million) have been utilised to reduce deferred tax. No deferred tax  asset has been  raised in respect of the tax losses of foreign subsidiaries that may not be utilised in the short-term or may expire in terms of applicable tax legislation.