Notes to the Financial Statements (11 - 20)

 

11.	CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, cash on deposit and cash advanced, repayable on demand.
12.	SHARE CAPITAL (Rmillion)
						Company
						2005	2004*
	Authorised:       150 000 000 ordinary shares of R1 each					150	150
	Issued and fully paid:       103 895 629 (2004* - 102 247 941)					104	102
	Unissued:
	Under option to employees, in terms of the original employee share option schemes, for a period of ten years from date granted, to subscribe for 5 699 233 shares at an average price of R40,40 per share (2004* – 7 466 621 shares at R39,79 per share).
	These share option schemes were replaced in 2005 with a new share incentive scheme comprising the Share Appreciation Right Scheme 2005, the Long Term Incentive Plan 2005 and the Deferred Bonus Plan 2005. The primary intention of these new schemes is to settle awards through acquiring shares in the market and delivering them to the employee and consequently no dilution of equity is expected.
	Under control of the directors:
	for the purpose of the employee share option schemes 4 690 330 shares (2004* – 2 758 173 shares). interms of a shareholders’ resolution 10 288 054 shares (2004* – 37 527 265 shares).
	Details of the employee share incentive schemes are set out in note 26.
	*Restated for IFRS
13.	DEFERRED TAX (Rmillion)			Group		Company
				2005	2004*	2005	2004*
	Balance at beginning of year			854	866	276	296
	Accounted for in equity			(2)	9	(2)	8
	Currency alignment			(1)	1
	Income statement:
	Current year charge/(relief) on:
	Earnings before exceptional items			122	(24)	100	(30)
	Rate change adjustment			(28)		(9)
	Exceptional items			1	(3)	1	(3)
	Prior years			(10)	5	(9)	5
	Balance at end of year			936	854	357	276
	Comprising temporary differences relative to:
	Property, plant and equipment			854	886	355	356
	Growing crops			36	36	22	23
	Export partnership			203	210	203	210
	Current assets			54	58	5	5
	Current liabilities			(114)	(108)	(95)	(90)
	Tax losses			(135)	(223)	(131)	(214)
	Other			38	(5)	(2)	(14)
				936	854	357	276
14.	BORROWINGS (Rmillion)			Group		Company
				2005	2004*	2005	2004*
	Short-term			668	1 096	530	1 002
	Bank overdraft			34	29	17
				702	1 125	547	1 002
	Long-term			138	255
				840	1 380	547	1 002
	Long-term borrowings comprise:	Effective
		interest rate %
	Secured:
	SA Rand
	Finance leases (refer to note 28)	11,3		3	4
	Unsecured:
	SA Rand
	Repayable 2006/2008	12,5		104	138
	Foreign
	Repayable 2006/2009	Libor + 0,4		103	120
	Repaid in 2005				56
				207	314
	Long-term borrowings			210	318
	Less: Current portion included in short-term borrowings			72	63
				138	255
	Plant and machinery with a book value of R89 million (2004* – R44 million) are encumbered as security for the secured finance lease obligations and as security for certain short-term borrowings of R2 million (2004* – R8 million).
	Unsecured Rand denominated long-term loans of R104 million (2004* – R138 million) are shown net after set-off of related investments totalling R186 million (2004* – R152 million). The foreign Libor linked unsecured loans are repayable in US dollars and amount to US $16 million (2004* – US $23 million). These loans are recorded at the ruling price at year end and the foreign currency risk is covered by forward exchange contracts.
	Summary of future loan repayments by financial year:			Year	2007	2008	2009
				Rmillion	80	45	13
	In terms of the company's articles of association the borrowing powers of the Group are limited to R7 billion.
	* Restated for IFRS

15.	PROVISIONS (Rmillion)	Group		Company
		2005	2004*	2005	2004*
	Post-retirement medical aid obligations (refer to note 24)	230	221	190	184
	Retirement gratuity obligations (refer to note 24)	52	49	46	43
	Other	1	1	1	1
		283	271	237	228
16.	TRADE AND OTHER PAYABLES (Rmillion)	Group		Company
		2005	2004*	2005	2004*
	Accounts payable	1 009	953	429	464
	Maize obligations – interest bearing	110	218	110	218
		1 119	1 171	539	682
	The directors consider that the carrying amount of trade and other payables approximates their fair value.
17.	OPERATING PROFIT (Rmillion)	Group		Company
		2005	2004*	2005	2004*
	Revenue	6 926	6 298	4 084	3 970
	Cost of sales	(5 218)	(4 972)	(3 162)	(3 228)
	Administration expenses	(737)	(772)	(459)	(460)
	Marketing and selling expenses	(421)	(391)	(284)	(267)
	Other income	174	187	262	187
	Exceptional items (refer to note 18)	6	8	252	62
	Operating profit	730	358	693	264
	Disclosable items included in operating profit:
	Valuation adjustments on financial instruments and other items:
	Maize procurement contracts		18		18
	Translation of foreign currency:
	Foreign cash holdings	14	(47)
	Other	7	(22)	2
	Export receivables	10	3	(2)	2
	Financial instruments	(6)	(3)
		25	(51)		20
	Dividends received from subsidiaries:
	Triangle	19	51
	Other subsidiaries			45	88
	Income from unlisted investments		6		5
	Surplus on disposal of plant and equipment	1	4	1	2
	Amortisation of intangible assets	1	1
	Depreciation charged:
	Buildings	11	11	4	4
	Plant and equipment	225	190	147	137
	Vehicles and other	29	29	16	18
	Management fees paid to subsidiaries			1	2
	Management fees paid to third parties	4	4
	Technical fees paid	9	11	9	11
	Operating lease charges (property, plant and vehicles)	16	14	12	10
	Share-based payments	15	8	12	6
	Auditors’ remuneration:
	Fees	6	5	4	3
	Other services	1	1	1	1
	*Restated for IFRS

18.	EXCEPTIONAL ITEMS (Rmillion)		Group		Company
			2005	2004*	2005	2004*
	Included in operating profit:
		Surplus on sale of property	11	18	40	26
		Estate closure costs	(5)	(10)	(5)	(10)
		Recovery of loan to subsidiary, previously written-off by the company			217	46
	Exceptional items before tax		6	8	252	62
	Tax (refer to note 20)		(1)	3	(1)	3
	Exceptional items after tax		5	11	251	65
19.	NET FINANCING COSTS (Rmillion)		Group		Company
			2005	2004*	2005	2004*
	Net financing costs comprise:
		Interest paid – external	(131)	(275)	(77)	(208)
		Set-off of related financial instrument income	33	112
		Interest paid – subsidiaries			(15)	(11)
	Financing costs		(98)	(163)	(92)	(219)
		Financial instrument income			33	112
		Interest received – external	38	70	5	7
	Finance income		38	70	38	119
	Net financing costs		(60)	(93)	(54)	(100)
20.	TAX (Rmillion)		Group		Company
			2005	2004*	2005	2004*
	Profit before exceptional items:
		Current	51	51
		Deferred	122	(24)	100	(30)
		Rate change adjustment (deferred)	(28)		(9)
		Secondary tax on companies	26	12	26	12
		Prior years	(10)	5	(10)	4
			161	44	107	(14)
	Exceptional items:
		Deferred	1	(3)	1	(3)
	Tax for the year		162	41	108	(17)
	Foreign tax included above		7	4
	Reconciliation of tax charge at the normal rate of
		South African tax to the effective rate of tax:
	Tax charge at normal rate of South African tax		187	81	185	49
	Adjusted for:
		Non-taxable income	(28)	(61)	(95)	(97)
		Assessed losses of foreign subsidiaries	(5)	(9)
		Share of associate company’s loss/(profit)	7	(2)
		Non-allowable expenditure	7	2	5	2
		Rate change adjustment (deferred)	(28)		(9)
		Secondary tax on companies	26	12	26	12
		Capital gains	6	13	6	13
		Prior years	(10)	5	(10)	4
	Tax charge/(relief) as reported		162	41	108	(17)
	*Restated for IFRS
			Group		Company
			2005	2004*	2005	2004*
			%	%	%	%
	Normal rate of South African tax		29,0	30,0	29,0	30,0
	Adjusted for:
		Non-taxable income	(4,3)	(22,5)	(14,9)	(59,1)
		Assessed losses of foreign subsidiaries	(0,8)	(3,3)
		Share of associate company’s loss/(profit)	1,1	(0,7)
		Non-allowable expenditure	1,1	0,7	0,8	1,2
		Rate change adjustment (deferred)	(4,3)		(1,4)
		Secondary tax on companies	4,0	4,4	4,1	7,3
		Capital gains	0,9	4,7	0,9	7,9
		Prior years	(1,6)	1,8	(1,6)	2,4
	Effective rate of tax		25,1	15,1	16,9	(10,3)
	Normal tax losses of R472 million (2004* – R742 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.
	*	Restated for IFRS