Plant and machinery in Mozambique subsidiaries with a book value of R287 million (2007 -R248 million) are encumbered as security for the secured long-term borrowings and certain short-term borrowings of R143 million (2007 - R111 million).
The register of land and buildings is available for inspection at the company's registered office.
2.
GROWING CROPS (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Carrying value at beginning of year
353
212
98
87
Subsidiaries consolidated
70
Gain arising from physical growth and price changes
145
40
20
7
Increase due to increased area under cane
185
19
17
7
Decrease due to reduced area under cane
(9)
(3)
(5)
(3)
Currency alignment
68
15
Carrying value at end of year
742
353
130
98
The carrying value comprises:
Roots
497
201
83
58
Standing cane
245
152
47
40
742
353
130
98
Area under cane (hectares):
South Africa
11 417
10 401
11 417
10 401
Mozambique
20 534
14 393
Swaziland
3 750
3 750
35 701
28 544
11 417
10 401
3.
LONG-TERM RECEIVABLE AND PREPAYMENT (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Long-term receivable
Advances to an export partnership - at fair value
Carrying value at beginning of year
203
203
203
203
Fair value adjustment due to reduction in tax rate
(7)
(7)
Carrying value at end of year
196
203
196
203
Prepayment
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
(43)
(13)
(40)
(12)
At beginning of year
(13)
(12)
Charge for the year
(30)
(13)
(28)
(12)
Less BEE share ownership plan consolidation shares
(184)
(214)
170
198
Carrying value at end of year
196
203
366
401
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
2008
2007
Carrying value at beginning of year
42
21
Increase in shareholding in subsidiaries
46
20
Currency exchange rate changes
11
1
Carrying value at end of year
99
42
Goodwill is attributable to the Mozambique sugar operations and the Botswana subsidiary. Goodwill is tested annually for
impairment. The recoverable amount of goodwill was determined from the "value in use" discounted cash fl ow model. The
value in use cash fl ow projections, which cover a period of twenty years, are based on the most recent budgets and forecasts
approved by management and the extrapolation of cash fl ows which incorporate growth rates consistent with the average
long term growth trends of the market. As at 31 December 2008, the carrying value of goodwill was considered not to
require impairment.
5.
INTANGIBLE ASSETS (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Software at cost:
At beginning of year
16
26
11
7
Hulamin unbundling
(14)
Additions
2
4
1
4
Diposals
(2)
Currency alignment
1
At end of year
17
16
12
11
Accumulated amortisation:
At beginning of year
10
12
7
7
Hulamin unbundling
(2)
Charge for the year
2
1
Disposals
(2)
Currency alignment
1
At end of year
11
10
8
7
Carrying value at end of year
6
6
4
4
6.
INVESTMENTS (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Unlisted shares at cost
265
264
263
263
Loans
3
3
2
2
Carrying value of investments (Directors' valuation)
268
267
265
265
A schedule of unlisted investments is available for inspection at the company's registered office.
7.
SUBSIDIARIES AND JOINT VENTURES (Rmillion)
Company
2008
2007
Shares at cost, less amounts written off
1 255
556
Indebtedness by
1 302
908
Indebtedness to
(653)
(326)
1 904
1 138
Consolidated
2008
2007
Tongaat Hulett's proportionate share of the assets, liabilities and post-acquisition reserves of
joint ventures which comprise in the main, Effingham Development and Tongaat Hulett/
IFA Resort Developments and which are included in the consolidated financial statements are set
out below.
Property, plant, equipment and investments
8
7
Current assets
328
435
Less: Current liabilities
(93)
(170)
Interest in joint ventures
243
272
Tongaat Hulett's proportionate share of the trading results of the joint ventures
is as follows:
Revenue - continuing operations
10
224
Profit before tax
16
125
Tax
(4)
(15)
Net profit after tax
12
110
Discontinued operation - Hulamin unbundling
42
12
152
Consolidated
2008
2007
Tongaat Hulett's proportionate share of cash flows of the joint ventures is as follows:
Cash flows from operating activities
8
69
Net cash used in investing activities
(48)
(19)
Net movement in cash resources
40
50
The original investment in Triangle Sugar is retained at a nominal value with the subsequent investment held at cost. As such,
its assets and liabilities are not consolidated in the annual financial statements. Its results are accounted for in operating profit
only to the extent that dividends, net of any witholding taxes, are received. Dividends of R35 million (2007 - R53 million)
were received from Triangle Sugar in 2008.
8.
INVENTORIES (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Raw materials
386
206
386
206
Work in progress
13
15
13
15
Finished goods
933
737
891
721
Consumable stores
180
142
111
90
Development properties
197
231
1 709
1 331
1 401
1 032
Included in raw materials is an amount of R305 million (2007 - R155 million) that relates to the constructive obligation that
has been recognised on maize procurement contracts.
9.
DERIVATIVE INSTRUMENTS (Rmillion)
Consolidated
Company
2008
2007
2008
2007
The fair value of derivative instruments at year end was:
Forward exchange contracts - hedge accounted
(17)
8
(17)
8
Forward exchange contracts - not hedge accounted
(1)
(1)
(1)
(1)
Futures contracts - hedge accounted
(3)
3
(3)
3
(21)
10
(21)
10
Summarised as:
Derivative assets
2
12
2
12
Derivative liabilities
(23)
(2)
(23)
(2)
(21)
10
(21)
10
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.
