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  12 059  3 523  5 247  2 651  72  566 
  Additions  1 156  181  356  161  1  457 
  Disposals  (24)   (15) (9)    
  Depreciation  (587) (108) (287) (188) (4)  
  Transfers    10  203  31    (244)
  Transfer to intangible assets  (32)         (32)
  Currency alignment  746  508  72  164  (3) 5 
  Carrying value at end of year  13 318  4 114  5 576  2 810  66  752 
               
  Comprising:             
  31 March 2016             
  At cost  19 236  5 081  9 034  4 264  105  752 
  Accumulated depreciation  5 918  967  3 458  1 454  39   
    13 318  4 114  5 576  2 810  66  752 
  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 
               
  Company             
               
  Carrying value at beginning of year  2 894  465  1 789  174  3  463 
  Additions  657  6  272  20  1  358 
  Disposals  (3) (1) (2)      
  Depreciation  (176) (8) (151) (16) (1)  
  Transfers    10  197  12    (219)
  Transfer to intangible assets  (32)         (32)
  Carrying value at end of year  3 340  472  2 105  190  3  570 
               
  Comprising:             
  31 March 2016             
  At cost  6 002  596  4 349  479  8  570 
  Accumulated depreciation  2 662  124  2 244  289  5   
    3 340  472  2 105  190  3  570 
               
  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 
               
  Plant and machinery of Mozambique subsidiaries with a book value of R581 million (2015: R497 million) are encumbered as security for the secured long-term borrowings and certain short-term borrowings of R84 million (2015: R97 million). 
 
 
  The register of land and buildings is available for inspection at the company's registered office. 
   

2.  GROWING CROPS (Rmillion) Consolidated  Company 
    2016  2015  2016  2015 
           
  Carrying value at beginning of year  5 473  5 005  1 490  1 288 
  Gain arising from physical growth and price changes  166  28  74  58 
  Increase due to increased area under cane  75  75  72  75 
  Expenditure on new area  72  78  72  78 
  Decrease due to land sales  (5) (2) (5) (2)
  Decrease due to reduced area under cane  (4) (7) (4) (7)
  Currency alignment  371  296     
  Carrying value at end of year  6 148  5 473  1 699  1 490 
           
  The carrying value comprises:         
  Roots  3 234  2 923  1 234  1 164 
  Standing cane  2 914  2 550  465  326 
    6 148  5 473  1 699  1 490 
  Area under cane (hectares):         
  South Africa  39 116  38 107  39 116  38 107 
  Mozambique  25 687  25 687     
  Swaziland  3 838  3 838     
  Zimbabwe  28 644  28 494     
    97 285  96 126  39 116  38 107 
           
  In terms of IAS 41: Agriculture, sugar cane 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 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: 
    2016  2015 
    South Africa  Swaziland  Zimbabwe  Mozambique  Total   
               
  Roots             
  Hectares under cane  39 116  3 838  28 644  25 687  97 285  96 126 
  Amortised root value (Rand per hectare) 31 542  17 572  37 197  33 777  33 246  30 406 
  Cane             
  Hectares for harvest  30 400  3 768  27 138  24 957  86 263  86 967 
  Standing cane value (Rand per hectare) 15 280  31 420  51 198  37 714  33 775  29 319 
  Yield (Tons cane per hectare ) 50  116  90  77  73  83 
  Average maturity of cane at 31 March (%) 73  65  67  72  70  66 
  Statement of Financial Position (Rmillion)            
  Roots  1 234  67  1 065  868  3 234  2 923 
  Standing cane  465  118  1 389  942  2 914  2 550 
  Total  1 699  185  2 454  1 810  6 148  5 473 

    2016  2015           
                 
  Carrying value at beginning of year  5 473  5 005           
  Change in fair value *  237  96           
  Currency alignment  371  296           
  Expenditure on new area (net of
land sales)		 67  76           
  Carrying value at end of year  6 148  5 473           
                 
 

The IAS 41 fair value change included in profit or loss for the year ended 31 March 2016 is set out below and the fair value measurement disclosures are included in note 25. 
 
    2016  2015        2016  2015 
                 
  Roots  96  197      South Africa  142  126 
  Standing cane  141  (101)     Swaziland  13  (11)
  Change in fair value *  237  96      Zimbabwe  (56) 66 
            Mozambique  138  (85)
            Change in fair value *  237  96 
 

*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 
    2016  2015  2016  2015 
           
  Long-term receivable         
  Employer surplus account  634  588  634  588 
  Less current portion  (70) (70) (70) (70)
  Carrying value at end of year  564  518  564  518 
           
  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  (227) (226) (210) (210)
      At beginning of year  (226) (209) (210) (194)
      Charge for the year  (1) (17)   (16)
           
  Less BEE share ownership plan consolidation shares    (1)    
           
           
  Carrying value at end of year  564  518  564  518 
           
  The prepayments relate 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     
    2016  2015     
           
  Carrying value at beginning of year  376  338     
  Currency alignment  62  38     
  Carrying value at end of year  438  376     
           
 

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 four 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 2016, the carrying value of goodwill was considered not to require impairment. 
 
 
 
           
5.  INTANGIBLE ASSETS (Rmillion) Consolidated  Company 
    2016  2015  2016  2015 
           
  Cost:         
  At beginning of year  122  118  116  112 
  Additions  123  4  102  4 
  Transfer from property, plant and equipment  32    32   
  Currency alignment  1       
  At end of year  278  122  250  116 
           
  Accumulated amortisation:         
  At beginning of year  58  48  53  43 
  Charge for the year  8  10  8  10 
  At end of year  66  58  61  53 
           
  Carrying value at end of year  212  64  189  63 
           
  The carrying value comprises:         
  Software  44  44  42  44 
  Patents and licences  18  19  18  18 
  Cane supply agreements    1    1 
  Capital work in progress (SAP ERP) 150    129   
    212  64  189  63 
 
           
6.  INVESTMENTS (Rmillion) Consolidated  Company 
    2016  2015  2016  2015 
           
  Unlisted shares  25  26     
  Loans  1  1     
  Carrying value of investments (Directors' valuation) 26  27     
           
  A schedule of unlisted investments is available for inspection at the company's registered office. 
 

7.  SUBSIDIARIES AND JOINT OPERATIONS (Rmillion)     Company 
        2016  2015 
           
  Shares at cost, less amounts written off      4 307  4 307 
  Indebtedness by      1 066  699 
  Indebtedness to      (893) (999)
        4 480  4 007 
           
  Tongaat Hulett's proportionate share of the assets, liabilities and post-acquisition reserves of joint operations comprise Effingham Development (33,3%) and Tongaat Hulett/IFA Resort Developments (50%) and is included in the consolidated financial statements. These joint operations are property development partnerships which operate in KwaZulu-Natal, South Africa. 
   
  Further details of principal subsidiary companies and joint operations are included in note 26. 
 
           
8.  INVENTORIES (Rmillion) Consolidated  Company 
    2016  2015  2016  2015 
           
  Raw materials  357  333  303  287 
  Work in progress  19  28  18  28 
  Finished goods  617  471  180  147 
  Consumables  883  754  172  160 
  Development properties  816  761     
  Livestock and game  174  125     
    2 866  2 472  673  622 
           
  Included in raw materials is an amount of R111 million (2015: R234 million) that relates to the constructive obligation that has been recognised on maize procurement contracts. 
 

9.  DERIVATIVE INSTRUMENTS (Rmillion) Consolidated  Company 
    2016  2015  2016  2015 
           
  The fair value of derivative instruments at year end was:         
           
  Forward exchange contracts - hedge accounted  6  (3) 6  (3)
  Forward exchange contracts - not hedge accounted  1    1   
  Futures contracts - hedge accounted  52  (24) 52  (24)
    59  (27) 59  (27)
           
  Summarised as:         
  Derivative assets  60  1  60  1 
  Derivative liabilities  (1) (28) (1) (28)
    59  (27) 59  (27)
           
  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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