NOTES

    

Unaudited Unaudited Audited
Half-year Half-year Year ended
30 June 30 June 31 December
2003 2002 2002
Rmillion Restated
 
1. Valuation adjustments on
  financial instruments
   and other items
Maize procurement contracts (255) 15 (20)
Translation of foreign currency:
- offshore cash holdings (61) (57) (151)
- other (25) (12) (15)
Export receivables (22) (14) (26)
Financial instruments (12) (6) (3)



(375) (74) (215)
 


2. Net interest paid
Interest paid (170) (149) (306)
Financial instrument income 83 71 149
Interest received 25 23 57



(62) (55)   (100)



Increased borrowings from R931 million at 31 December 2002 to R1 457 million at 30 June 2003 arose from the funding of operations and expenditure on property, plant and equipment, resulting in the increase in interest paid.
 
3. Tax
Tax on (loss)/earnings before 
  exceptional items
- Normal (7) (8) (21)
- Deferred 60 (39) (82)
- S T C (24)   (16) (26)
Tax on exceptional items 2



29 (63) (127)



4. Capital commitments
Contracted 95 66 90
Approved but not contracted 107 113 221



202 179 311



5. Operating lease commitments 37 40 44



6.   Guarantees and contingent
   liabilities
55 17 44



7.  Basis of preparation
The unaudited results of the Group for the half-year ended 30 June 2003 have been prepared on a basis consistent with the audited annual financial statements at 31 December 2002. The accounting policies of the Group conform with South African Statements of Generally Accepted Accounting Practice. The interim report has been prepared in accordance with AC127: Interim Financial Reporting.

In preparing its financial statements for the year ended 31 December 2002, the Group adopted AC 423: Property, Plant and Equipment Major Inspection or Overhaul Costs and AC 137: Agriculture (and as a consequence no longer accounts for its sugar operations on a seasonal basis) and accounted for maize futures and option contracts as derivatives or cash flow hedges where the requirements for hedge accounting have been met. Comparative figures for the six months to 30 June 2002 have been restated for these accounting policy changes. This has had a R13 million unfavourable effect on the prior half-year's earnings after tax and resulted in equity reducing by R85 million, property, plant and equipment by R62 million, investment in associate by R16 million, working capital by R230 million and deferred tax by R18 million with an increase in growing crops of R205 million.