Notes to the annual financial statements

for the year ended 30 September

 
 
    Group     Company  
    2010  
Rm  
  2009  
Rm  
  2010  
Rm  
  2009  
Rm  
20.   LONG-TERM BORROWINGS                
  SECURED – AT AMORTISED COST (excluding quince)               
  Long-term loans   —     0,2     —     —  
  Finance leases   0,3     0,1     44,2     45,9  
  Less: Short-term portion   (0,1)    (0,1)    (2,4)    (1,7) 
  Total secured   0,2     0,2     41,8     44,2  
  UNSECURED – AT AMORTISED COST (excluding QUINCE)               
  Long-term loans   10,8     10,8          
  Total unsecured   10,8     10,8          
  Long-term borrowings   11,0     11,0     41,8     44,2  
  QUINCE LONG-TERM BORROWINGS SECURED – AT AMORTISED COST                
  Long-term loans   699,9     699,9          
  Quince long-term borrowings   699,9     699,9          
  The long-term loan relates to AA Notes issued in Quince. This loan bears interest at JIBAR plus 0,39% per annum and final payment will be made in 2012.                
  The loan is secured by the Quince accounts receivable (refer to note 15).                
  Amounts payable under finance leases                
  Total minimum lease payments   0,3     0,1     66,3     72,8  
      < 1 year 0,1     0,1     6,9     6,5  
  1 – 5 years   0,2     —     33,3     30,9  
      > 5 years   —     —     26,1     35,4  
  Less: Future finance charges   —     —     (22,1)    (26,9) 
      < 1 year   —     —     (4,5)    (4,8) 
  1 – 5 years   —     —     (14,3)    (16,0) 
      > 5 years   —     —     (3,3)    (6,1) 
  Present value of minimum lease payments   0,3     0,1     44,2     45,9  
      < 1 year   0,1     0,1     2,4     1,7  
  1 – 5 years   0,2     —     19,0     14,9  
      > 5 years   —     —     22,8     29,3  
  Reunert entered into a lease agreement with Quince, taken over by Reunert Finance Company Limited on 1 September 2007, whereby the new Nashua building is leased over a period of 12 years at an interest rate of 10,5% per annum.  
   
  The other finance leases relate to minor equipment with average lease terms of three to five years. The group has options to purchase the equipment for nominal amounts at the conclusion of the lease agreement.  
   
  The group’s obligations under finance leases are secured by the lessors’ title to the leased assets.  
   
  The fair value of the lease liabilities are approximately equal to their carrying amount.