View section as PDF (68KB)

NOTES (11-20) TO THE FINANCIAL STATEMENTS

11.	SHARE CAPITAL (Rmillion)			Consolidated		Company
				2015	2014	2015	2014
	Authorised:
	150 000 000 ordinary shares of R1,00 each			150	150	150	150
	Nil (2014: 30 000 000) A preferred ordinary shares of R1,00 each				30		30
	Nil (2014:10) redeemable preference shares of R1,00 each
				150	180	150	180
	Issued and fully paid:
	135 112 506 (2014: 109 967 030) ordinary shares of R1,00 each			135	110	135	110
	Nil (2014: 25 104 976) A preferred ordinary shares of R1,00 each				25		25
				135	135	135	135
	Under control of the directors in terms of a shareholders' resolution: 6 753 600 shares (2014: 5 432 385 shares).
	In terms of the original agreements and approvals of the 2007 BEE transaction, the A preferred ordinary shares had a 7-year term, within the overall 10 year transaction period. Accordingly, in July 2014, being the seventh anniversary, the compulsory conversion of the A preferred ordinary shares into ordinary shares occurred and these new ordinary shares were listed on the JSE on 4 July 2014, ranking pari passu with the other ordinary shares. The A preferred ordinary shares and the redeemable preference shares thus ceased to exist. Further information is provided here.
	Details of the employee share incentive schemes are set out in the Remuneration Report.
12.	BEE HELD CONSOLIDATION SHARES (Rmillion)			Consolidated
				2015	2014
	25 104 976 (2014: nil) ordinary shares			839
	Nil (2014: 25 105 976) A preferred ordinary shares				839
	928 655 (2014: 1 080 938) ordinary shares			1	18
				840	857
	Less amount attributable to BEE SPV shareholders			(166)	(157)
				674	700
13.	DEFERRED TAX (Rmillion)			Consolidated		Company
				2015	2014	2015	2014
	Balance at beginning of year			2 131	1 930	508	463
	Currency alignment			204	179
	Current year other comprehensive income (relief) / charge on:
	Actuarial loss			(7)	(5)	(7)	(3)
	Hedge reserve			(1)	2	(1)	2
	Current year income statement charge / (relief) on:
	Earnings before capital profits			161	16	(17)	33
	Capital profits			3	13	3	13
	Rate change adjustment				(4)
	Balance at end of year			2 491	2 131	486	508
	Comprising temporary differences related to:
	Property, plant and equipment			1 736	1 477	511	527
	Growing crops			1 101	925	417	361
	Long-term receivable			165	154	165	154
	Current assets			221	162	8	9
	Current liabilities			(107)	(104)	(41)	(40)
	Tax losses			(452)	(370)	(361)	(264)
	Other			(173)	(113)	(213)	(239)
				2 491	2 131	486	508
14.	BORROWINGS (Rmillion)			Consolidated		Company
				2015	2014	2015	2014
	Long-term			4 056	4 094	3 853	3 852
	Short-term and bank overdraft			1 604	1 293	1 338	1 006
				5 660	5 387	5 191	4 858
	Long-term borrowings comprise:
			Effective interest rate
	Secured:
	SA Rand
	Repayable 2020/21		9,00%	238	274
	Finance leases (refer to note 28)		7,50%	4	3	4	3
				242	277	4	3
	Unsecured:
	SA Rand
	Repayable 2019/20		3 month JIBAR + 2,05%	500		500
	Repayable 2019/20		3 month JIBAR + 2,00%	350		350
	Repayable 2018/19		3 month JIBAR + 1,85%	350		350
	Bond repayable 2018/19		3 month JIBAR + 2,60%	350	350	350	350
	Bond repayable 2018/19		3 month JIBAR + 2,40%	170	170	170	170
	Repayable 2017/18		3 month JIBAR + 2,33%	500	500	500	500
	Repayable 2017/18		3 month JIBAR + 2,70%	180	180	180	180
	Repayable 2016/17		3 month JIBAR + 2,50%	500	500	500	500
	Bond repayable 2016/17		3 month JIBAR + 2,43%	400	400	400	400
	Repayable 2016/17		3 month JIBAR + 2,10%	300	300	300	300
	Repayable 2016/17		3 month JIBAR + 2,17%	250	250	250	250
	Repaid during the year				1 200		1 200
	Foreign
	Indefinite		nil	4	4
				3 854	3 854	3 850	3 850
	Long-term borrowings			4 096	4 131	3 854	3 853
	Less Current portion included in short-term borrowings			40	37	1	1
				4 056	4 094	3 853	3 852
	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).
	Short-term borrowings comprise call loans and bank overdrafts with various South African financial institutions at interest rates linked to the prime overdraft rate as well as short-term borrowings in Mozambique equivalent to R50 million (2014: R39 million) and in Zimbabwe equivalent to R191 million (2014: R203 million).
	Summary of future loan repayments by financial year:
	Year	2015/16	2016/17	2017/18	2018/19	2019/20	Thereafter
	Rmillion	40	1 494	728	922	908	4
	In terms of the company's memorandum of incorporation the borrowing powers exercisable by the directors is limited to R20 664 million.
15.	NON-RECOURSE EQUITY-SETTLED BEE BORROWINGS (Rmillion)
				Consolidated
				2015	2014
	The non-recourse equity-settled BEE borrowings comprise:
			Effective interest rate
	4 122 000 Class A redeemable preference shares		nil (9,335% nacs)		24
	4 122 000 Class B redeemable preference shares		77% of prime
			(11,960% nacs)	697	649
	Accrued dividends				19
				697	692
	Less BEE cash resources			43	1
				654	691
	These borrowings relate to Tongaat Hulett's black economic empowerment partners, yoMoba SPV (Pty) Limited and  TH Infrastructure SPV (Pty) Limited, which have been fully consolidated in terms of IFRS. yoMoba SPV (Pty) Limited owns  11 157 767 ordinary shares (2014: 11 157 767 A preferred ordinary shares) and TH Infrastructure SPV (Pty) Limited owns  13 947 209 ordinary shares (2014: 13 947 209 A preferred ordinary shares) in Tongaat Hulett.
	The original preference share structure ran up until mid-2014 and had a fixed coupon payable semi-annually on 2 January and  1 July each year. The Class A redeemable preference shares were repaid on 1 July 2014, whilst the repayment terms of the Class B redeemable preference shares were extended to 31 July 2015, with the dividend payable on these shares also payable on  31 July 2015. The debt due will be settled by the SPVs utilising the shares that they hold in Tongaat Hulett, together with dividends received from Tongaat Hulett. These SPVs will continue to be consolidated while Tongaat Hulett carries a residual risk in these entities.
16.	PROVISIONS (Rmillion)			Consolidated		Company
				2015	2014	2015	2014
	Post-retirement medical aid obligations			542	487	427	396
	Retirement gratuity obligations			198	176	122	112
	Other			3	33
				743	696	549	508
	Further details on provisions are set out in note 31.
17.	TRADE AND OTHER PAYABLES (Rmillion)			Consolidated		Company
				2015	2014	2015	2014
	Accounts payable			2 899	2 407	1 327	1 147
	Maize obligation - interest bearing			246	334	246	334
				3 145	2 741	1 573	1 481
	The directors consider that the carrying amount of trade and other payables approximates their fair value.
18.	OPERATING PROFIT (Rmillion)			Consolidated		Company
				2015	2014	2015	2014
	Revenue			16 155	15 716	8 508	8 393
	Cost of sales - cane and maize purchases			(4 223)	(4 423)	(3 309)	(3 545)
	Cost of sales - other (includes goods, services, salaries and wages)			(8 309)	(7 085)	(3 918)	(3 558)
	Administration and other expenses			(1 581)	(1 678)	(707)	(718)
	Marketing and selling expenses			(367)	(334)	(244)	(247)
	Other net income (including growing crops fair value change *)			387	133	774	504
	Capital profits (refer to note 19)			48	66	55	135
	BEE IFRS 2 charge and transaction costs			(21)	(21)	(19)	(20)
	Operating profit			2 089	2 374	1 140	944
	Disclosable items included in operating profit:
	Income from subsidiaries:
	Dividends received					425	148
	Management fees					99	91
	Amortisation of intangible assets			10	15	10	15
	Auditors' remuneration:
	Fees			15	14	6	6
	Other services			2	2	1	1
	Depreciation charged:
	Buildings			88	80	7	7
	Plant and equipment			305	321	149	168
	Vehicles and other			171	170	22	31
	Growing crops: gain/(loss) from change in fair value *			96	(153)	126	178
	Management fees paid to subsidiaries					1	1
	Management fees paid to third parties			5	4
	Operating lease charges (property, plant and vehicles)			68	71	62	65
	(Loss)/surplus on disposal of propery, plant and equipment			(4)	1	2
	Share-based payments:
	IFRS 2 charge on SARS, LTIP and DBP			85	67	73	57
	BEE IFRS 2 charge			18	16	16	15
	Technical fees paid			17	13	17	13
	Translation of foreign currencies			16	37	1	1
	Valuation adjustments:
	Financial instruments			1	1	1	1
	Fair value hedges:
	Net gains on the hedged item			37	47	37	47
	Net losses on the hedging instrument			(37)	(47)	(37)	(47)
	* 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.
19.	CAPITAL PROFITS (Rmillion)			Consolidated		Company
				2015	2014	2015	2014
	Comprises:
	Surplus on sale of land and buildings			81	74	88	142
	Costs thereon			(33)	(8)	(33)	(7)
	Capital profits before tax			48	66	55	135
	Tax (refer to note 21)			(3)	(18)	(3)	(13)
	Capital profits after tax			45	48	52	122
20.	NET FINANCING (COSTS)/INCOME (Rmillion)			Consolidated		Company
				2015	2014	2015	2014
	Net financing costs comprise:
	Interest paid - external			(685)	(646)	(524)	(469)
	Interest capitalised			1		1
	Interest paid - subsidiaries					(113)	(76)
	Financing costs			(684)	(646)	(636)	(545)
	Interest received - external			67	37	14	3
	Interest received - subsidiaries						1
	Finance income			67	37	14	4
	Net financing costs			(617)	(609)	(622)	(541)

 

contents

downloads