Notes to the annual financial statements

for the year ended 30 September

 
 
            Group Company
            Cost  
Rm  
Accu-  
mulated  
depreciation  
and  
impairments  
Rm  
Net  
book  
value  
Rm  
Cost  
Rm  
Accu-  
mulated  
depreciation  
and  
impairments  
Rm  
Net  
book  
value  
Rm  
10.   PROPERTY, PLANT AND EQUIPMENT                  
  2010                      
  Freehold land   – Investment       6,2     6,2   19,7     19,7  
    – Owner occupied       38,9     38,9   7,5     7,5  
  Freehold buildings   – Investment       4,7   0,6   4,1   46,3   2,1   44,2  
    – Owner occupied       108,5   18,2   90,3   32,1   10,7   21,4  
  Leasehold buildings   – Owner occupied       68,7   33,3   35,4   49,7   19,2   30,5  
  Plant and equipment           943,4   591,7   351,7   305,7   221,6   84,1  
  Vehicles           44,2   26,2   18,0   13,8   8,8   5,0  
  Capital work-in-progress         49,2   —   49,2   29,2   —   29,2  
            1 263,8   670,0   593,8   504,0   262,4   241,6  
  2009                      
  Freehold land   – Investment       21,0     21,0   13,4     13,4  
    – Owner occupied       21,9     21,9   6,8     6,8  
  Freehold buildings   – Investment       4,0   0,6   3,4   16,5   —   16,5  
    – Owner occupied       79,9   16,8   63,1   27,9   10,9   17,0  
  Leasehold buildings   – Owner occupied       67,2   23,4   43,8   49,7   14,8   34,9  
  Plant and equipment           891,4   533,0   358,4   277,9   182,9   95,0  
  Vehicles           44,8   24,6   20,2   12,3   6,6   5,7  
  Capital work-in-progress         27,5   —   27,5   4,6   —   4,6  
            1 157,7   598,4   559,3   409,1   215,2   193,9  
                       
      Land Buildings Plant          
      Invest-  
ment  
Rm  
Owner  
occupied  
Rm  
Invest-  
ment  
Rm  
Owner  
occupied  
Rm  
and  
equipment  
Rm  
Vehicles  
Rm  
Capital  
WIP  
Rm  
2010  
Total  
Rm  
2009  
Total  
Rm  
  MOVEMENT IN PROPERTY, PLANT AND EQUIPMENT – GROUP                   
  Reclassified book value at the beginning of the year1   6,2   36,5   3,4   107,3   358,2   20,2   27,5   559,3   569,6  
  Acquisition of businesses   —   —   —   —   21,1   0,3   2,3   23,7   1,4  
  Additions     —   3,2   0,7   26,0   63,6   6,4   19,8   119,7   78,1  
  Disposals     —   (0,8)  —   —   (1,9)  (1,9)  —   (4,6)  (7,4) 
  Transfers to inventory     —   —   —   —   (1,9)  —   (0,4)  (2,3)  —  
      6,2   38,9   4,1   133,3   439,1   25,0   49,2   695,8   641,7  
  Depreciation     —   —   —   (7,6)  (81,8)  (7,0)  —   (96,4)  (82,4) 
  Impairment     —   —   —   —   (5,6)  —   —   (5,6)  —  
  Net book value at the end of the year   6,2   38,9   4,1   125,7   351,7   18,0   49,2   593,8   559,3  
  MOVEMENT IN PROPERTY, PLANT AND EQUIPMENT – COMPANY                    
  Reclassified book value at the beginning of the year1   13,4   6,8   15,0   53,4   95,0   5,7   4,6   193,9   215,4  
  Additions     6,3   1,6   29,2   4,4   11,1   0,9   24,6   78,1   9,5  
  Disposals     —   (0,9)  —   —   (0,7)  (0,3)  —   (1,9)  (2,8) 
  Net transfer of businesses   —   —   —   —   11,8   1,2   —   13,0   —  
      19,7   7,5   44,2   57,8   117,2   7,5   29,2   283,1   222,1  
  Depreciation     —   —   —   (5,9)  (27,5)  (2,5)  —   (35,9)  (28,2) 
  Impairment     —   —   —   —   (5,6)  —   —   (5,6)  —  
  Net book value at the end of the year   19,7   7,5   44,2   51,9   84,1   5,0   29,2   241,6   193,9  
 
1 The opening balances for land and buildings have been reclassified to better reflect the split between investment property and owner occupied property. However the overall balances remain unchanged from those reported in the prior year. In addition capital work-in-progress which was previously included in plant and equipment has been separately disclosed.  
                       
  NOTES:                      
 
1. A register of group property may be inspected at the registered office of the company.
2. The open-market value of investment properties amounts to R46,4 million (2009: R44,9 million).
The open-market values were determined in 2009 by independent valuers who hold recognised and relevant qualifications and who have recent experience in the locations and categories of the investment properties being valued, and adjusted to 2010 values using relevant building price indices to determine value increases.
3. Useful lives used for the following categories: 
Buildings   12 to 50 years  
Plant   5 to 33,3 years  
Office equipment   5 to 20 years  
Computer equipment   3,3 to 10 years  
Furniture   5 to 20 years  
Vehicles   3 to 12 years  
4. The insured value of the group’s property, plant and equipment as at 30 September 2010 amounted to R4,0 billion (2009: R4,1 billion).
This is based on the cost of replacement of such assets, except for motor vehicles and certain selected assets which are included at market value.  
5. During the year a review was carried out on the recoverable amount of the group’s manufacturing plant and equipment, having regard to the ongoing programme of introduction of new product lines and the discontinuation of old lines. The review led to the recognition of an impairment loss of R5,64 million, which has been recognised in profit and loss. The recoverable amount of the relevant assets has been determined based on their fair values. Fair values were estimated based on current market prices obtainable for such assets in South Africa.
                         
                  Group Company
                  2010  
Rm  
2009  
Rm  
2010  
Rm  
2009  
Rm  
  6. Operating leases receivable          
    Total future minimum lease payments receivable for all non-cancellable leases on land and buildings          
    < 1 year               —   —   3,1   4,7  
    1 – 5 years               —   —   1,0   2,4  
                  —   —   4,1   7,1  
    Gross carrying amount of assets leased under operating leases   —   —   26,8   26,8  
    Accumulated depreciation   —   —   (2,1)  (1,9) 
         —   —   24,7   24,9  
    Total future minimum lease payments receivable for all non-cancellable leases on property, plant and equipment          
    < 1 year   18,3   —   —   —  
    1 – 5 years   25,2   —   —   —  
                  43,5   —   —   —  
    Gross carrying amount of assets leased under operating leases   39,1   —   —   —  
    Accumulated depreciation   (27,6)  —   —   —  
                  11,5   —   —   —