NOTES (1-10) TO THE
FINANCIAL STATEMENTS

1.  PROPERTY, PLANT AND EQUIPMENT (Rmillion)
  Consolidated  Total  Land, 
improvements 
and buildings 		 Cane 
roots 		 Plant and 
equipment 		 Vehicles 
and other 		 Capitalised 
leases 		 Capital 
work in 
progress 
                 
  Carrying value at beginning of year
(restated - note 35)		 16 415  4 114  3 097  5 576  2 810  66  752 
  Additions  1 069  82  418  338  52  1  178 
  Disposals  (16) (6) (3) (2) (5)    
  Depreciation  (1 027) (104) (481) (277) (163) (2)  
  Transfers    27    131  (10) (2) (146)
  Currency alignment  (2 753) (544) (414) (1 063) (644) (14) (74)
  Carrying value at end of year  13 688  3 569  2 617  4 703  2 040  49  710 
                 
  Comprising:               
  31 March 2017               
  At cost  20 391  4 516  3 613  8 087  3 401  64  710 
  Accumulated depreciation  6 703  947  996  3 384  1 361  15   
    13 688  3 569  2 617  4 703  2 040  49  710 
  31 March 2016 (restated - note 35)              
  At cost  22 988  5 081  3 752  9 034  4 264  105  752 
  Accumulated depreciation  6 573  967  655  3 458  1 454  39   
    16 415  4 114  3 097  5 576  2 810  66  752 
                 
  Company               
                 
  Carrying value at beginning of year
(restated - note 35)		 4 493  472  1 153  2 105  190  3  570 
  Additions  706  13  239  276  18  1  159 
  Disposals  (8) (2) (3) (2)   (1)  
  Depreciation  (335) (8) (130) (169) (27) (1)  
  Transfers    27    106  3    (136)
  Carrying value at end of year  4 856  502  1 259  2 316  184  2  593 
                 
  Comprising:               
  31 March 2017               
  At cost  7 967  655  1 532  4 680  501  6  593 
  Accumulated depreciation  3 111  153  273  2 364  317  4   
    4 856  502  1 259  2 316  184  2  593 
                 
  31 March 2016 (restated - note 35)              
  At cost  7 298  596  1 296  4 349  479  8  570 
  Accumulated depreciation  2 805  124  143  2 244  289  5   
    4 493  472  1 153  2 105  190  3  570 
  Plant and machinery of Mozambique subsidiaries with a book value of R367 million (2016: R581 million) are encumbered as security for the secured long-term borrowings and certain short-term borrowings of nil (2016: R84 million). 
 
 
  The register of land and buildings is available for inspection at the company's registered office. 
   
2.  LONG-TERM RECEIVABLE (Rmillion) Consolidated  Company 
    2017  2016  2017  2016 
           
  Employer surplus account (note 31) 689  634  689  634 
  Less current portion  (70) (70) (70) (70)
  Carrying value at end of year  619  564  619  564 
 
         
3.  GOODWILL (Rmillion) Consolidated     
    2017  2016     
           
  Carrying value at beginning of year  438  376     
  Currency alignment  (56) 62     
  Carrying value at end of year  382  438     
           
  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. The discount rates used in the cash flow models range between 11,6% and 14,2%. In the packing operations in Namibia and Botswana, sales growth rates of between 1,5% and 2% have been used while in the sugar production operations in Zimbabwe and Mozambique a return to production levels closer to capacity have been assumed post the drought. As at 31 March 2017, the carrying value of goodwill was considered not to require impairment. Based on the sensitivity calculations performed any reasonably possible changes in key assumptions would not cause the recoverable amounts to fall below the carrying values. 
 
 
 
           
4.  INTANGIBLE ASSETS (Rmillion) Consolidated  Company 
    2017  2016  2017  2016 
           
  Cost:         
  At beginning of year  278  122  250  116 
  Additions  166  123  144  102 
  Transfer from property, plant and equipment    32    32 
  Currency alignment  (5) 1     
  At end of year  439  278  394  250 
           
  Accumulated amortisation:         
  At beginning of year  66  58  61  53 
  Charge for the year  8  8  8  8 
  Currency alignment  (1)      
  At end of year  73  66  69  61 
           
  Carrying value at end of year  366  212  325  189 
           
  The carrying value comprises:         
  Software  36  44  35  42 
  Patents and licences  18  18  18  18 
  Capital work in progress (SAP ERP) 312  150  272  129 
    366  212  325  189 
 
       
5.  INVESTMENTS (Rmillion) Consolidated  Company 
    2017  2016  2017  2016 
           
  Unlisted shares  27  25     
  Loans  1  1     
  Carrying value of investments (Directors' valuation) 28  26     
           
  A schedule of unlisted investments is available for inspection at the company's registered office. 
 
         
6.  SUBSIDIARIES AND JOINT OPERATIONS (Rmillion)     Company 
        2017  2016 
           
  Shares at cost, less amounts written off      5 471  4 307 
  Indebtedness by/net indebtedness      92  173 
        5 563  4 480 
  Indebtedness to (included in accounts payable)     (413)  
        5 150  4 480 
           
  Details of principal subsidiary companies and the joint operation are included in note 26. 
 
       
7.  INVENTORIES (Rmillion) Consolidated  Company 
    2017  2016  2017  2016 
           
  Raw materials  386  357  379  303 
  Work in progress  21  19  20  18 
  Finished goods  634  617  228  180 
  Consumables  790  883  226  172 
  Development properties  1 005  816     
  Livestock and game  113  174     
    2 949  2 866  853  673 
           
  Included in raw materials is an amount of R274 million (2016: R111 million) that relates to the constructive obligation that has been recognised on maize procurement contracts. 
 
       
8.  GROWING CROPS (Rmillion) Consolidated  Company 
    2017  2016 
Restated 
(note 35)		 2017  2016 
Restated 
(note 35)
           
  Carrying value of standing cane at beginning of year  2 914  2 550  465  326 
  Gain arising from physical growth and price changes  88  95  178  97 
  Increase due to increased area under cane  68  49  68  46 
  Decrease due to reduced area under cane  (13) (3) (1) (2)
  Decrease due to land sales  (3) (2) (3) (2)
  Currency alignment  (505) 225     
  Carrying value at end of year  2 549  2 914  707  465 
           
  In terms of IAS 41: Agriculture, sugar cane growing crops, comprising standing cane, is accounted for as a biological asset and is measured and recognised at fair value. Changes in the fair value are included in profit or loss. The fair value of standing cane is determined by estimating 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 as at 31 March 2017. 
       
    2017  2016 
    South Africa  Swaziland  Zimbabwe  Mozambique  Total   
               
  Hectares for harvest  33 247  3 774  27 982  23 156  88 159  86 263 
  Standing cane value (Rand per hectare) 21 265  31 914  36 475  30 268  28 913  33 775 
  Yield (Tons cane per hectare) 60  110  92  75  76  73 
  Average maturity of cane at 31 March (%) 73  60  57  65  64  70 
  Statement of financial position (Rmillion)            
  Carrying value  707  120  1 021  701  2 549  2 914 
               
  The IAS 41 fair value change included in profit or loss for the year ended 31 March 2017 is set out below and the fair value measurement disclosures are included in note 25. 
 
Rmillion  2017  2016 
Restated 
(note 35)
     
Carrying value at beginning of year  2 914  2 550 
Change in fair value  143  141 
Land sales  (3) (2)
Currency alignment  (505) 225 
Carrying value at end of year  2 549  2 914 
     
 
 
Rmillion  2017  2016 
Restated 
(note 35) 
     
South Africa  245  141 
Swaziland 2  10 
Zimbabwe (244) (129)
Mozambique 140  119 
Change in fair value  143  141 
     
 
       
9.  DERIVATIVE INSTRUMENTS (Rmillion) Consolidated  Company 
    2017  2016  2017  2016 
           
  The fair value of derivative instruments at year end was:         
           
  Forward exchange contracts - hedge accounted    6    6 
  Forward exchange contracts - not hedge accounted    1    1 
  Futures contracts - hedge accounted  (9) 52  (9) 52 
    (9) 59  (9) 59 
           
  Summarised as:         
  Derivative assets    60    60 
  Derivative liabilities  (9) (1) (9) (1)
    (9) 59  (9) 59 
           
  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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