NOTES (1-10) TO THE FINANCIAL STATEMENTS



1. PROPERTY, PLANT AND EQUIPMENT (Rmillion)
  Consolidated Total  Land, 
improvements 
and buildings 		 Plant and 
equipment 		 Vehicles 
and other 		 Capitalised 
leases 		 Capital 
work in 
progress 
  Carrying value at beginning of year 11 279  3 205  5 118  2 504  73  379 
  Additions 712  79  218  122  2  291 
  Disposals (18) (11) (5) (2)    
  Depreciation (564) (88) (305) (167) (4)  
  Transfers 1  72  39    (112)
  Currency alignment 650  337  149  155  1  8 
  Carrying value at end of year 12 059  3 523  5 247  2 651  72  566 
               
  Comprising:            
  31 March 2015            
  At cost 17 178  4 285  8 349  3 869  109  566 
  Accumulated depreciation 5 119  762  3 102  1 218  37   
    12 059  3 523  5 247  2 651  72  566 
  31 March 2014            
  At cost 15 686  3 821  7 866  3 511  109  379 
  Accumulated depreciation 4 407  616  2 748  1 007  36   
    11 279  3 205  5 118  2 504  73  379 
               
  Company            
  Carrying value at beginning of year 2 644  472  1 724  172  2  274 
  Additions 438  4  162  16  2  254 
  Disposals (10) (4) (6)      
  Depreciation (178) (7) (149) (21) (1)  
  Transfers     58  7  (65)
  Carrying value at end of year 2 894  465  1 789  174  3  463 
               
  Comprising:            
  31 March 2015            
  At cost 5 394  581  3 886  457  7  463 
  Accumulated depreciation 2 500  116  2 097  283  4   
    2 894  465  1 789  174  3  463 
               
  31 March 2014            
  At cost 4 986  581  3 686  438  7  274 
  Accumulated depreciation 2 342  109  1 962  266  5   
    2 644  472  1 724  172  2  274 
               
  Plant and machinery of Mozambique subsidiaries with a book value of R497 million (2014: R495 million) are encumbered as security for the secured long-term borrowings and certain short-term borrowings of R97 million (2014: R101 million).

The register of land and buildings is available for inspection at the company's registered office.
           
2. GROWING CROPS (Rmillion) Consolidated Company
        2015  2014  2015  2014 
  Carrying value at beginning of year 5 005  4 583  1 288  1 003 
  Gain/(loss) arising from physical growth and price changes 28  (276) 58  54 
  Increase due to increased area under cane 75  131  75  131 
  Expenditure on new area 76  118  76  107 
  Decrease due to reduced area under cane (7) (8) (7) (7)
  Currency alignment 296  457     
  Carrying value at end of year 5 473  5 005  1 490  1 288 
               
  The carrying value comprises:            
  Roots     2 923  2 532  1 164  910 
  Standing cane     2 550  2 473  326  378 
        5 473  5 005  1 490  1 288 
  Area under cane (hectares):            
  South Africa     38 107  35 035  38 107  35 035 
  Mozambique     25 687  25 687     
  Swaziland     3 838  3 838     
  Zimbabwe     28 494  27 557     
        96 126  92 117  38 107  35 035 
               
  In terms of IAS 41: Agriculture, sugarcane growing crops are accounted for as biological assets and are measured and recognised at fair value. Changes in the fair value, replanting and agricultural operating costs incurred are included in profit or loss.
   
 
- The fair value of roots is determined on a current amortised cost basis, which is adjusted for cost increases, and the amortisation takes place over the productive life of the roots (between 6 and 12 years).
- The fair value of standing cane is determined by the growth of the cane, the yield, sucrose content, selling prices (including specifics such as European Union exports), less costs to harvest and transport, over-the-weighbridge costs and costs into the market.
   
  The statement of financial position reflects the following in respect of growing crops:
    2015  2014 
    South Africa Swaziland Zimbabwe Mozambique Total  
  Roots            
  Hectares under cane 38 107  3 838  28 494  25 687  96 126  92 117 
  Amortised root value (Rand per hectare) 30 516  16 660  28 403  34 520  30 406  27 484 
  Cane            
  Hectares for harvest 29 730  3 831  28 448  24 958  86 967  85 059 
  Standing cane value (Rand per hectare) 10 970  28 334  44 060  34 524  29 319  29 080 
  Yield (Tons cane per hectare ) 54  126  100  90  83  87 
  Average maturity of cane at 31 March (%) 64  67  64  70  66  69 
  Statement of Financial Position (Rmillion)            
  Roots 1 164  63  810  886  2 923  2 532 
  Standing cane 326  109  1 253  862  2 550  2 473 
  Total 1 490  172  2 063  1 748  5 473  5 005 
               
    2015  2014         
  Carrying value at beginning of year 5 005  4 583         
  Change in fair value* 96  (153)        
  Currency alignment 296  457         
  Expenditure on new area 76  118         
  Carrying value at end of year 5 473  5 005         
             
  The IAS 41 fair value change included in profit or loss for the year ended 31 March 2015 is set out below and the fair value measurement disclosures are included in note 25.
    2015  2014    2015  2014 
  Roots 197  (78)   South Africa 126  178 
  Standing cane (101) (75)   Swaziland (11) 14 
  Change in fair value* 96  (153)   Zimbabwe 66  (241)
          Mozambique (85) (104)
          Change in fair value * 96  (153)
 
* This represents the gross change in fair value. The agricultural costs actually incurred in generating this increase in fair value are charged to cost of sales.
 
             
3. LONG-TERM RECEIVABLE AND PREPAYMENTS (Rmillion) Consolidated Company
        2015  2014  2015  2014 
  Long-term receivable        
  Employer surplus account 588  552  588  552 
  Less current portion (70) (67) (70) (67)
  Carrying value at end of year 518  485  518  485 
               
  Prepayments        
  Contribution to the BEE Employee Share Ownership Plan 136  136  132  132 
  Contribution to the BEE Management Share Ownership Plan 91  91  78  78 
        227  227  210  210 
               
  Less accumulated amortisation at end of year (226) (209) (210) (194)
  At beginning of year (209) (193) (194) (180)
  Charge for the year (17) (16) (16) (14)
               
  Less BEE share ownership plan consolidation shares (1) (18)    
              16 
               
  Carrying value at end of year     518  485  518  501 
               
   
  The prepayment relates to awards made in terms of the company's BEE employee share ownership plans, details of which are set out in note 34.
   
               
4. GOODWILL (Rmillion) Consolidated    
        2015  2014     
  Carrying value at beginning of year 338  300     
  Currency alignment 38  38     
  Carrying value at end of year 376  338     
               
  Goodwill is attributable to the Mozambique and Zimbabwe sugar operations and a Botswana and a Namibian subsidiary. Goodwill is tested annually for impairment. The recoverable amount of goodwill was determined from the "value in use" discounted cash flow model. The value in use cash flow projections, which cover a period of five years, are based on the most recent budgets and forecasts approved by management and the extrapolation of cash flows which incorporate growth rates consistent with the average long-term growth trends of the market. As at 31 March 2015, the carrying value of goodwill was considered not to require impairment.
               
               
5. INTANGIBLE ASSETS (Rmillion) Consolidated Company
        2015  2014  2015  2014 
  Cost:            
  At beginning of year 118  111  112  105 
  Additions 4  7  4  7 
  At end of year 122  118  116  112 
               
  Accumulated amortisation:        
  At beginning of year     48  33  43  28 
  Charge for the year     10  15  10  15 
  At end of year 58  48  53  43 
               
  Carrying value at end of year 64  70  63  69 
               
  The carrying value comprises:        
  Software 44  53  44  53 
  Patents and licences 19  16  18  15 
  Cane supply agreements 1  1  1  1 
        64  70  63  69 
               
               
6. INVESTMENTS (Rmillion) Consolidated Company
        2015  2014  2015  2014 
  Unlisted shares 26  17     
  Loans 1  1     
  Carrying value of investments (Directors' valuation) 27  18     
               
  A schedule of unlisted investments is available for inspection at the company's registered office.
               
               
7. SUBSIDIARIES AND JOINT OPERATIONS (Rmillion) Company
            2015  2014 
  Shares at cost, less amounts written off 4 307  4 307 
  Indebtedness by         699  631 
  Indebtedness to         (999) (934)
            4 007  4 004 
               
  Details of principal subsidiary companies and joint operations are included in note 26.
               
  Tongaat Hulett's proportionate share of the assets, liabilities and post-acquisition reserves of joint operations, which comprise, in the main, Effingham Development (33%) and Tongaat Hulett/IFA Resort Developments (50%) and which are included in the consolidated financial statements, are set out below. With effect from 1 April 2014, a 50% interest in a joint operation was disposed of for R2 million, resulting in a surplus on disposal of R2 million.
               
            Consolidated
            2015  2014 
  Property, plant and equipment         5  6 
  Current assets         209  199 
  Less Current liabilities         (56) (56)
  Interest in joint operations         158  149 
               
  Tongaat Hulett's proportionate share of the trading results of the joint operations is as follows:    
  Revenue         13  17 
               
  Operating profit         1  1 
  Financing income/(costs)     1  (1)
  Profit before tax         2   
  Tax         (1)  
  Net profit after tax         1   
               
  Tongaat Hulett's proportionate share of cash flows of the joint operations is as follows:    
  Cash flows from operating activities     (12) 16 
  Net cash used in investing activities     (4) (18)
  Movement in net cash resources     (16) (2)
               
               
8. INVENTORIES (Rmillion) Consolidated Company
        2015  2014  2015  2014 
  Raw materials     333  408  287  401 
  Work in progress     28  21  28  20 
  Finished goods     471  747  147  154 
  Consumables     754  585  160  143 
  Development properties 761  546     
  Livestock and game     125  109     
        2 472  2 416  622  718 
               
  Included in raw materials is an amount of R234 million (2014: R321 million) that relates to the constructive obligation that has been recognised on maize procurement contracts.
               
               
9. DERIVATIVE INSTRUMENTS (Rmillion) Consolidated Company
        2015  2014  2015  2014 
  The fair value of derivative instruments at year end was:        
               
  Forward exchange contracts - hedge accounted (3) (1) (3) (1)
  Futures contracts - hedge accounted (24) 16  (24) 16 
        (27) 15  (27) 15 
               
  Summarised as:            
  Derivative assets 1  16  1  16 
  Derivative liabilities (28) (1) (28) (1)
        (27) 15  (27) 15 
               
  Further details on derivative instruments are set out in note 25.
               
               
10. CASH AND CASH EQUIVALENTS        
  Cash and cash equivalents include cash on hand, cash on deposit and cash advanced, repayable on demand and excludes  bank overdrafts.
               

 

 

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