Notes to the Financial Statments (11 - 20)

 

11.	DEFERRED TAX (Rmillion)	Group		Company
		2004	2003	2004	2003
	Balance at beginning of year	866	1 006	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	5	4	5
	Balance at end of year	854	866	276	296
	Comprising temporary differences relative to:
	Property, plant and equipment	886	888	356	362
	Growing crops	36	41	23	28
	Export partnership	210	210	210	210
	Current assets	58	51	5	5
	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	902	1 002	829
	Bank overdraft			29	96		16
				1 125	998	1 002	845
	Long-term			255	371
				1 380	1 369	1 002	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		56	98
				314	540		103
	Total long-term borrowings			318	547		103
	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	2011	Thereafter
	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	2003	2004	2003
	Post-retirement medical aid obligations (note 24)	221	211	184	177
	Retirement gratuity obligations (note 24)	49	46	43	41
	Other	1	3	1	3
		271	260	228	221
14.	TRADE AND OTHER PAYABLES (Rmillion)	Group		Company
		2004	2003	2004	2003
	Accounts payable	953	998	464	483
	Maize obligations - interest bearing	218	553	218	553
		1 171	1 551	682	1 036
15.	UNDERLYING OPERATING PROFIT (Rmillion)	Group		Company
		2004	2003	2004	2003
	Revenue	6 298	6 559	3 970	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	137	105	100	69
	Underlying operating profit	387	452	129	219
	Disclosable items:
	Income from unlisted investments	6	1	5
	Surplus on disposal of plant and equipment	4	2	2	1
	Depreciation charged:
	Buildings	11	9	4	4
	Plant and equipment	190	178	137	126
	Vehicles and other	30	36	18	23
	Management fees paid to subsidiaries			2	10
	Management fees paid to third parties	4	5
	Technical fees paid	11	16	11	16
	Operating lease charges (property, plant and vehicles)	14	13	10	10
	Auditors' remuneration:
	Fees	5	5	3	3
	Other services	1	1	1	1
16.	DIVIDENDS RECEIVED FROM SUBSIDIARIES (Rmillion)	Group		Company
		2004	2003	2004	2003
	Triangle	51	19
	Other subsidiaries			88	54
		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	0,8	1,9	1,0	0,8
	Secondary tax on companies	4,4	40,3	7,1	27,4
	Capital gains	4,7	33,5	7,7	22,7
	Prior years	1,8	5,6	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.