Notes to the annual financial statements

for the year ended 30 September

 
 
    Group   Company
    2010  
Rm  
  2009  
Rm  
  2010  
Rm  
  2009  
Rm  
28.   FINANCIAL INSTRUMENTS                
  CATEGORIES OF FINANCIAL INSTRUMENTS                
  Financial assets                
  Fair value through profit or loss (FVTPL)               
       Held-for-trading (included in derivative assets)  7,3     41,1     2,6     10,9  
  Held-to-maturity investments (included in other investments and loans (group); interest in subsidiaries (company))  —     6,8     2 528,7     2 424,4  
  Loans and receivables (included in cash and cash equivalents, accounts receivable (including Quince) and other investments and loans)  5 006,6     5 001,2     937,3     743,9  
  Available-for-sale financial asset (included in investments)  494,3     494,3     494,3     494,3  
  Derivative assets   7,3     41,1     2,6     10,9  
       FECs   2,9     20,5     2,6     —  
       Other   —     11,1     —     10,9  
       Interest rate swaps – excluding Quince   —     0,6     —     —  
  Fair value through profit or loss   2,9     32,2     —     10,9  
  Interest rate swaps – Quince   4,4     8,9     —     —  
  NSN option (refer to note 14)  299,2     299,2     299,2     299,2  
  Financial liabilities                
  FVTPL                
       Held-for-trading (included in derivative liabilities)  (52,2)    (27,0)    (0,6)    (6,2) 
  Amortised cost (included in long-term borrowings, bank overdrafts and short-term portion of long-term borrowings and accounts payable)  (2 949,6)    (3 063,1)    (773,5)    (598,1) 
  Derivative liabilities   (52,2)    (27,0)    (0,6)    (6,2) 
       FECs   (2,5)    (7,5)    (0,6)    (6,2) 
       Interest rate swaps – Quince   (48,2)    (18,1)    —     —  
       Other   (1,5)    (1,4)    —     —  
                         
  LEVELS OF FINANCIAL INSTRUMENTS                        
  ASSETS MEASURED AT FAIR VALUE                        
    Group   Company
    Level 1  
Rm  
  Level 2  
Rm  
  Level 3  
Rm  
  Level 1  
Rm  
  Level 2  
Rm  
  Level 3  
Rm  
  2010                        
  FVTPL                        
       FECs   2,9     —     —     2,6     —     —  
       Other   —     —     299,2     —     —     299,2  
       Interest rate swaps – Quince   4,4     —     —     —     —     —  
  Held-to-maturity investments (included in other investments and loans (group); interest in subsidiaries (company))  —     —     —     —     —     2 528,7  
  Available-for-sale financial asset (included in investments)  —     —     494,3     —     —     494,3  
    7,3     —     793,5     2,6     —     3 322,2  
  LIABILITIES MEASURED AT FAIR VALUE                        
  FVTPL                        
       FECs   (2,5)    —     —     (0,6)    —     —  
       Interest rate swaps – excluding Quince   (1,5)    —     —     —     —     —  
       Interest rate swaps – Quince   (48,2)    —     —     —     —     —  
    (52,2)    —     —     (0,6)    —     —  
                         
    Group   Company
    Other  
Rm  
  Held-to-  
maturity  
Rm  
  Available-  
for-sale  
Rm  
  Other  
Rm  
  Held-to-  
maturity  
Rm  
  Available-  
for-sale  
Rm  
  2010                        
  RECONCILIATION OF CARRYING VALUE OF LEVEL 3 ASSETS AT THE BEGINNING AND END OF THE YEAR                        
  FINANCIAL ASSETS                        
  Opening balance at 1 October 2009   299,2     6,8     494,3     299,2     2 424,4     494,3  
  Businesses acquired   —     —     —     —     112,2     —  
  Disposal   —     (6,8)    —     —     (1,0)    —  
  Impairments   —     —     —     —     (4,4)    —  
  Fair value adjustment through profit or loss   —     —     —     —     1,4     —  
  Other movements   —     —     —     —     (3,9)    —  
  Closing balance at 30 September 2010   299,2     —     494,3     299,2     2 528,7     494,3  
  Total gains or losses for the year included in profit or loss for assets held at the end of the year   —     —     —     —     (3,0)    —  
                         
  RISK MANAGEMENT                        
  The Reunert group is exposed to liquidity, credit, foreign currency, interest rate and commodity price risks arising from its financial instruments.  
  The risk management relating to each of these risks is discussed under the headings below. The group’s objective in using derivative instruments for hedging purposes is to reduce the uncertainty over future cash flows arising from foreign currency, interest rate and commodity price risk exposures.  
                         
  LIQUIDITY RISK                        
  Liquidity risk is the risk that an entity in the group will be unable to meet its obligations in respect of financial liabilities when they become due.  
  The group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities and by continuously monitoring forecast and actual cash flows.  
  All of the group’s short-term borrowings or excess cash is directed through RFCL, which is managed by senior management from the head office of the group.  
  The overnight call market is mainly used for short-term borrowings, with three to six-month borrowings used when deemed appropriate. Excess cash is only deposited with reputable banks and is spread over more than one bank to reduce exposures to any one institution.  
                         
  The following table details the group’s remaining contractual maturity for its financial liabilities. The table reflects the undiscounted cash flows of financial liabilities based on the earliest date on which the group is required to pay. The table includes both interest and principal cash flows.  
            Group
            <1 year  
Rm  
  1 – 5 years  
Rm  
  > 5 years  
Rm  
  Total  
Rm  
  2010                        
  Financial liabilities included in trade and other payables           (1 545,5)    (0,9)    —     (1 546,4) 
  Bank overdrafts and short-term portion of long-term borrowings – excluding Quince           (0,8)    —     —     (0,8) 
  Long-term borrowings – excluding Quince           —     (11,0)    —     (11,0) 
  Quince borrowings           (691,5)    (699,9)    —     (1 391,4) 
  Derivative instruments                        
       FECs (gross settled)          (2,5)    —     —     (2,5) 
       Interest rate swaps – Quince           (48,2)    —     —     (48,2) 
       Other           (1,5)    —     —     (1,5) 
            (2 290,0)    (711,8)    —     (3 001,8) 
  2009                        
  Financial liabilities included in trade and other payables           (1 335,3)    (1,3)    (0,2)    (1 336,8) 
  Bank overdrafts and short-term portion of long-term borrowings – excluding Quince           (3,1)    —     —     (3,1) 
  Long-term borrowings – excluding Quince           —     (7,3)    (3,7)    (11,0) 
  Quince borrowings           (1 012,3)    (699,9)    —     (1 712,2) 
  Derivative instruments                        
       FECs (gross settled)          (7,5)    —     —     (7,5) 
       Interest rate swaps – Quince           —     (18,1)    —     (18,1) 
       Other derivative instruments (net settled)          (1,4)    —     —     (1,4) 
            (2 359,6)    (726,6)    (3,9)    (3 090,1) 
                         
            Company
            <1 year  
Rm  
  1 – 5 years  
Rm  
  > 5 years  
Rm  
  Total  
Rm  
  2010                        
  Financial liabilities included in trade and other payables           (447,9)    —     —     (447,9) 
  Bank overdrafts and short-term portion of long-term borrowings           (2,4)    —     —     (2,4) 
  Long-term borrowings           —     (19,0)    (22,8)    (41,8) 
  Amounts owing by subsidiaries           (233,7)    —     (47,7)    (281,4) 
  Derivative instruments                        
       FECs (gross settled)          (0,6)    —     —     (0,6) 
            (684,6)    (19,0)    (70,5)    (774,1) 
  2009                        
  Financial liabilities included in trade and other payables           (362,1)    —     —     (362,1) 
  Bank overdrafts and short-term portion of long-term borrowings           (1,7)    —     —     (1,7) 
  Long-term borrowings           —     (14,9)    (29,3)    (44,2) 
  Amounts owing by subsidiaries           (142,4)    —     (47,7)    (190,1) 
  Derivative instruments                        
       FECs (gross settled)          (6,2)    —     —     (6,2) 
            (512,4)    (14,9)    (77,0)    (604,3) 
                         
  The following table details the group’s expected maturity for its financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets.  
            Group
            <1 year  
Rm  
  1 – 5 years  
Rm  
  > 5 years  
Rm  
  Total  
Rm  
  2010                        
  Cash and cash equivalents – including Quince         1 878,1     —     —     1 878,1  
  Financial assets included in accounts receivable – excluding Quince     1 616,1     —     —     1 616,1  
  Quince accounts receivable           646,3     821,7     —     1 468,0  
  Other investments and loans           494,3     39,3     5,1     538,7  
  Derivative instruments                        
       FECs           2,9     —     —     2,9  
       Interest rate swaps – excluding Quince           —     4,4     —     4,4  
       NSN option           299,2     —     —     299,2  
            4 936,9     865,4     5,1     5 807,4  
  2009                        
  Cash and cash equivalents – including Quince         1 700,7     —     —     1 700,7  
  Financial assets included in accounts receivable – excluding Quince     1 519,9     23,7     —     1 543,6  
  Quince accounts receivable           709,7     993,6     —     1 703,3  
  Other investments and loans           0,4     554,3     —     554,7  
  Derivative instruments                        
       FECs           30,6     —     —     30,6  
       Interest rate swaps – excluding Quince           —     —     0,6     0,6  
       Interest rate swaps Quince           —     9,9     —     9,9  
       NSN option           —     299,2     —     299,2  
            3 961,3     1 880,7     0,6     5 842,6  
                         
            Company
            <1 year  
Rm  
  1 – 5 years  
Rm  
  > 5 years  
Rm  
  Total  
Rm  
  2010                        
  Cash and cash equivalents           283,0     —     —     283,0  
  Financial assets included in accounts receivable         327,9     —     —     327,9  
  Amounts owing by subsidiaries           —     326,4     —     326,4  
  Other investments and loans           494,3     44,0     —     538,3  
  Interest in subsidiaries           —     —     2 483,7     2 483,7  
  Derivative instruments           2,6     —     —     2,6  
  NSN option           299,2     —     —     299,2  
            1 407,0     370,4     2 483,7     4 261,1  
  2009                        
  Cash and cash equivalents           90,1     —     —     90,1  
  Financial assets included in accounts receivable         272,1     —     —     272,1  
  Amounts owing by subsidiaries           —     328,4     —     328,4  
  Other investments and loans           —     547,6     —     547,6  
  Interest in subsidiaries           —     —     2 424,4     2 424,4  
  Derivative instruments           10,9     —     —     10,9  
  NSN option           —     299,2     —     299,2  
            373,1     1 175,2     2 424,4     3 972,7  
                   
  BORROWING CAPACITY                  
  The borrowings of the group are limited in terms of the company’s articles of association.  
      Group   Company
      2010  
Actual  
Rm  
  2009  
Actual  
Rm  
  2010  
Actual  
Rm  
  2009  
Actual  
Rm  
  Total long-term borrowings     710,9     710,9     41,8     44,2  
  Bank overdrafts and short-term portion of long-term borrowings     0,8     3,1     2,4     1,7  
  Quince short-term borrowings     691,5     1 012,3          
      1 403,2     1 726,3     44,2     45,9  
  The group’s maximum borrowings in terms of the articles of association are R4 162,8 million (2009: R3 836,4 million).  
  The company’s maximum borrowings in terms of the articles of association are R3 648,7 million (2009: R3 410,0 million).  
                   
  CREDIT RISK                  
  Credit risk refers to the risk of financial loss due to counterparties to financial instruments, including debtors, not meeting their contractual obligations. This risk is managed through ongoing credit evaluations of the financial condition of all customers. The granting of credit is controlled by application and credit vetting procedures which are updated and reviewed on an ongoing basis.  
  Where considered necessary, exports are covered by letters of credit and where appropriate, credit insurance is also obtained.  
  The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings.  
      Group   Company
      2010  
%  
  2009  
%  
  2010  
%  
  2009  
%  
  Total cash and cash equivalents, investments, accounts receivable and derivative instruments (net market value of these contracts), by geographic region exposed to:                  
  South Africa     96,7     96,1     95,8     92,6  
  Rest of Africa     0,5     1,4     0,9     6,2  
  Europe     0,7     0,7     0,7     0,3  
  Australasia     1,1     0,5     1,4     —  
  USA     0,5     0,4     0,8     0,2  
  Other     0,5     0,9     0,4     0,7  
      100,0     100,0     100,0     100,0  
  The maximum exposure to credit risk of financial assets included in trade and other receivables before any impairment losses or credit enhancements and excluding any collateral held, classified into major risk types:  
                   
      Group   Company
      2010  
Rm  
  2009  
Rm  
  2010  
Rm  
  2009  
Rm  
  Trade and other receivables (including Quince)    2 458,9     2 380,2     669,7     300,2  
       Insured debtors     150,6     196,3     77,7     106,9  
       Contractors     32,3     13,8     0,4     0,4  
       Individuals/small businesses     761,1     756,3     99,8     70,9  
       Mines/large businesses/government and parastatals     1 401,6     1 354,2     487,2     118,6  
       Municipalities     113,3     59,6     4,6     3,4  
  Derivative contracts     7,3     41,1     2,6     10,9  
       Insured debtors     —     20,4     —     —  
       Individuals/small businesses     0,4     —     0,3     —  
       Mines/large businesses/government and parastatals     6,9     20,7     2,3     10,9  
      2 466,2     2 421,3     672,3     311,1  
                   
  FOREIGN CURRENCY RISK                  
  Foreign currency risk refers to the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates.  
  The group has appointed a foreign currency management firm to manage its major currency exposures. A mandate is agreed with the firm from time to time which then manages the exposure within this mandate.  
  Forward exchange contracts at 30 September 2010 and 2009 are summarised below:  
      Group
      Foreign  
amount  
million  
  Fair  
value  
Rm  
  Contract  
value  
Rm  
  Unrealised  
gains/(losses)  
Rm  
  2010                  
  Imports – trade                  
  USD     (10,9)    (78,6)    (78,0)    (0,6) 
  Euro     (17,4)    (160,0)    (160,6)    0,6  
  GBP     (0,6)    (7,5)    (7,2)    (0,3) 
  Yen     (241,0)    (20,4)    (21,0)    0,6  
  CHF     (3,3)    (8,5)    (8,6)    0,1  
  SEK     (0,3)    (0,3)    (0,3)    —  
          (275,3)    (275,7)    0,4  
  Exports – trade                  
  Euro     1,0     10,0     10,0     —  
          10,0     10,0     —  
  Total net forward exchange contracts         (265,3)    (265,7)    0,4  
                   
                  Rm  
  Accounts payable in foreign currencies                 (249,0) 
  Of which covered by forward exchange contracts                 223,1  
  Accounts receivable in foreign currencies                 35,9  
  Of which covered by forward exchange contracts                 (10,0) 
                   
      Group
      Foreign  
amount  
million  
  Fair  
value  
Rm  
  Contract  
value  
Rm  
  Unrealised  
gains/(losses)  
Rm  
  2009                  
  Imports – trade                  
  USD     (11,3)    (86,2)    (89,2)    (3,0) 
  Euro     (14,2)    (158,2)    (161,6)    (3,4) 
  GBP     (0,5)    (6,2)    (6,4)    (0,2) 
  Yen     (178,2)    (15,1)    (15,7)    (0,6) 
  CHF     (0,6)    (4,5)    (4,7)    (0,2) 
  Imports – capital                  
  Euro     (0,2)    (1,7)    (1,7)    —  
          (271,9)    (279,3)    (7,4) 
  Exports – trade                  
  USD     5,7     43,2     63,4     20,2  
  Euro     0,5     5,1     5,3     0,2  
          48,3     68,7     20,4  
  Total net forward exchange contracts         (223,6)    (210,6)    13,0  
                   
                  Rm  
  Accounts payable in foreign currencies                 (214,6) 
  Of which covered by forward exchange contracts                 204,0  
  Accounts receivable in foreign currencies                 58,4  
  Of which covered by forward exchange contracts                 (48,2) 
                   
  Forward exchange contracts at 30 September 2010 and 2009 are summarised below:  
      Company
      Foreign  
amount  
million  
  Fair  
value  
Rm  
  Contract  
value  
Rm  
  Unrealised  
gains/(losses)  
Rm  
  2010                  
  Imports – trade                  
  USD     (4,4)    (31,3)    (32,3)    1,0  
  Euro     (13,8)    (132,3)    (132,7)    0,4  
  GBP     (0,1)    (1,5)    (1,5)    —  
  Yen     (241,0)    (20,4)    (21,0)    0,6  
          (185,5)    (187,5)    2,0  
                   
                  Rm  
  Accounts payable in foreign currencies                 (125,8) 
  Of which covered by forward exchange contracts                 104,0  
                   
      Company
      Foreign  
amount  
million  
  Fair  
value  
Rm  
  Contract  
value  
Rm  
  Unrealised  
gains/(losses)  
Rm  
  2009                  
  Imports – trade                  
  USD     (4,6)    (35,4)    (37,8)    (2,4) 
  Euro     (13,3)    (148,1)    (151,1)    (3,0) 
  GBP     (0,3)    (3,7)    (3,9)    (0,2) 
  Yen     (170,8)    (14,5)    (15,1)    (0,6) 
  CHF     (0,1)    (0,3)    (0,3)    —  
          (202,0)    (208,2)    (6,2) 
                   
                  Rm  
  Accounts payable in foreign currencies                 (199,6) 
  Of which covered by forward exchange contracts                 189,0  
                   
  FOREIGN CURRENCY SENSITIVITY ANALYSIS                  
  The following table details the group’s sensitivity to a 10% weakening (2009: 10% weakening) in the rand against the relevant foreign currencies. A 10% (2009: 10%) decrease represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and FECs and adjusts their translation at the year-end for a 10% change in foreign currency rates.  
      Group   Company
      2010  
Rm  
  2009  
Rm  
  2010  
Rm  
  2009  
Rm  
  Profit/(loss) before tax impact                  
  USD     24,4     13,7     13,9     3,5  
  Euro     12,2     6,1     10,9     0,5  
  GBP     0,6     0,5     0,1     0,3  
  Yen     (2,3)    (1,6)    (2,3)    (1,6) 
  CHF     2,3     0,3     (0,1)    (0,1) 
  AUD     6,3     0,2     2,9     —  
  Profit before taxation     43,5     19,2     25,4     2,6  
  Taxation     (12,2)    (5,4)    (7,1)    (0,7) 
  Profit after taxation impact     31,3     13,8     18,3     1,9  
                   
  INTEREST RATE RISK                  
  Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates.  
  The group, excluding Quince, is exposed to interest rate risk as it operates on a net cash basis. Quince is financed out of this net cash and external borrowings at variable rates.  
  Quince receivables may either be fixed or variable rate instruments. When deemed necessary, Quince may enter into various interest rate instruments to mitigate the risk posed by financing fixed rate receivables with variable rate borrowings.  
  Details of the interest rate hedging instruments are:                  
      Group
  Contracts expiring in:     <1 year  
Rm  
  1 – 5 years  
Rm  
  > 5 years  
Rm  
  Total  
Rm  
  2010                  
  Contract value     —     1 430,8     32,6     1 463,4  
      —     (43,8)    (1,5)    (45,3) 
  Derivative asset – excluding Quince          4,4     —     4,4  
  Derivative liability – Quince          (48,2)    (1,5)    (49,7) 
  Average fixed interest rate     —     8,3%     8,1%      
  2009                  
  Contract value     —     850,0     39,6     889,6  
      —     1,0     0,6     1,6  
  Derivative asset – excluding Quince     —     —     0,6     0,6  
  Derivative asset – Quince     —     19,1     —     19,1  
  Derivative liability – Quince     —     (18,1)    —     (18,1) 
  Average fixed interest rate     —     12,7%     10,5%      
  The interest rate hedges settle on a quarterly basis. The floating rate on the interest rate hedge is the three-month JIBAR. The group will settle the difference between the fixed and floating interest rate on a net basis. The company has not entered into any interest rate hedging instruments.  
  Interest rate sensitivity analysis                  
  The sensitivity analyses below have been determined based on the exposure to interest rates for both derivative and non-derivative instruments at the balance sheet date.  
      Group
      Weighted  
average  
effective  
interest  
rate  
%  
  Floating  
interest  
rate  
Rm  
  Fixed  
interest  
rate  
Rm  
  Non-  
interest-  
bearing  
Rm  
  Total  
Rm  
  2010                      
  Assets                      
  Cash and cash equivalents – including Quince     5,2     1 876,3     —     1,8     1 878,1  
  Financial assets included in accounts receivable – excluding Quince     10,0     114,4     0,1     1 501,6     1 616,1  
  Quince accounts receivable     15,1     478,6     989,4     —     1 468,0  
  Other investments and loans     5,3     —     —     538,7     538,7  
  NSN option         —     —     299,2     299,2  
          2 469,3     989,5     2 341,3     5 800,1  
  Liabilities                      
  Financial liabilities included in trade and other payables     8,0     (190,4)    —     (1 356,0)    (1 546,4) 
  Bank overdrafts and short-term portion of long-term borrowings – excluding Quince     6,5     (0,8)    —     —     (0,8) 
  Long-term borrowings – excluding Quince     —     —     —     (11,0)    (11,0) 
  Quince borrowings – long term     7,0     (699,9)    —     —     (699,9) 
  Quince borrowings – short term     6,5     (691,5)    —     —     (691,5) 
          (1 582,6)    —     (1 367,0)    (2 949,6) 
  Net financial assets         886,7     989,5     974,3     2 850,5  
                       
  2009                      
  Assets                      
  Cash and cash equivalents     6,7     1 700,7     —     —     1 700,7  
  Financial assets included in accounts
receivable – excluding Quince  
  14,5     99,2     61,1     1 383,3     1 543,6  
  Quince accounts receivable     14,5     237,5     1 465,8     —     1 703,3  
  Other investments and loans     8,0     21,1     —     533,6     554,7  
  NSN option     —     —     —     299,2     299,2  
          2 058,5     1 526,9     2 216,1     5 801,5  
  Liabilities                      
  Financial liabilities included in trade and other payables     10,0     (7,9)    —     (1 328,9)    (1 336,8) 
  Bank overdrafts and short-term portion of long-term borrowings – excluding Quince     8,1     (0,1)    (1,7)    (1,3)    (3,1) 
  Long-term borrowings – excluding Quince     8,4     (2,5)    —     (8,5)    (11,0) 
  Quince borrowings – long term     8,4     (699,9)    —     —     (699,9) 
  Quince borrowings – short term     8,1     (1 012,3)    —     —     (1 012,3) 
          (1 722,7)    (1,7)    (1 338,7)    (3 063,1) 
  Net financial assets         335,8     1 525,2     877,4     2 738,4  
  The analyses are prepared assuming the amount of net assets outstanding at the balance sheet date was outstanding for the whole year. A 2% increase is used for both the current and prior year and represents management’s assessment of the reasonable possible change in interest rates.  
  A 2% decrease would have the opposite effect on net profit after tax.  
  The group’s exposure to interest rate risk and the effective interest rates on financial instruments at balance sheet date are:  
If the group’s interest rates had been 2% higher and all other variables remained constant, the group’s profit after tax for the year ended 30 September 2010 would increase by R12,8 million (2009: decrease by R4,6 million). This is mainly attributable to the group’s exposure to interest rates on its variable rate deposits. 
                       
  The company’s exposure to interest rate risk and the effective interest rates on financial instruments at balance sheet date are:  
      Company
      Weighted  
average  
effective  
interest  
rate  
%  
  Floating  
interest  
rate  
Rm  
  Fixed  
interest  
rate  
Rm  
  Non-  
interest-  
bearing  
Rm  
  Total  
Rm  
  2010                      
  Assets                      
  Cash and cash equivalents     5,2     283,0     —     —     283,0  
  Financial assets included in accounts receivable     7,9     9,1     —     318,7     327,8  
  Other investments and loans     —     —     —     3 022,1     3 022,1  
  Amounts owing by subsidiaries     5,8     108,3     —     218,1     326,4  
  NSN option     —     —     —     299,2     299,2  
          400,4     —     3 858,1     4 258,5  
  Liabilities                      
  Financial liabilities included in trade and other payables     8,0     (184,1)    —     (263,8)    (447,9) 
  Bank overdrafts and short-term portion of long-term borrowings     10,5     —     (2,4)    —     (2,4) 
  Amounts owing to subsidiaries     7,3     (43,8)    (18,8)    (218,8)    (281,4) 
  Long-term borrowings     10,5     —     (41,8)    —     (41,8) 
          (227,9)    (63,0)    (482,6)    (773,5) 
  Net financial assets/(liabilities)        172,5     (63,0)    3 375,5     3 485,0  
                       
  2009                      
  Assets                      
  Cash and cash equivalents     6,7     90,1     —     —     90,1  
  Financial assets included in accounts receivable     —     —     —     272,1     272,1  
  Other investments and loans     8,0     21,1     —     2 950,9     2 972,0  
  Amounts owing by subsidiaries     —     —     —     328,4     328,4  
  NSN option     —     —     —     299,2     299,2  
          111,2     —     3 850,6     3 961,8  
  Liabilities                      
  Financial liabilities included in trade and other payables     —     —     —     (362,1)    (362,1) 
  Bank overdrafts and short-term portion of long-term borrowings     11,0     —     (1,7)    —     (1,7) 
  Amounts owing to subsidiaries     —     —     —     (190,1)    (190,1) 
  Long-term borrowings     10,5     —     (44,2)    —     (44,2) 
          —     (45,9)    (552,2)    (598,1) 
  Net financial assets/(liabilities)        111,2     (45,9)    3 298,4     3 363,7  
  If the company’s interest rates had been 2% higher and all other variables remained constant, the company’s profit after tax for the year ended 30 September 2010 would increase by R2,5 million (2009: increase by R1,6 million). This is mainly attributable to the company’s exposure to interest rates on its variable rate deposits.  
                       
  FAIR VALUE OF FINANCIAL INSTRUMENTS (GROUP AND COMPANY) 
  CASH AND CASH EQUIVALENTS                      
  The carrying amounts approximate fair value because of the short-term nature of these instruments.  
                       
  ACCOUNTS RECEIVABLE                      
  The carrying amounts of rand denominated receivables approximate fair value because of the short-term nature of these instruments. The carrying amounts of foreign currency denominated receivables have been converted at the rate of exchange ruling on the last day of the financial year. These amounts approximate fair value because of the short-term nature of these instruments.  
  The carrying amount of the Quince long-term accounts receivable and discounted deals approximate fair value because the rates inherent in the deals are market-related and are the same rates used to discount back to their carrying values.  
                       
  OTHER INVESTMENTS AND LOANS                      
  The fair value of the interest-bearing loans has been determined by discounting the future cash flows of these loans back to present values using current market-related interest rates.  
  The remainder of the investments are non-interest-bearing. The fair value of these loans cannot be determined as they have no repayment terms. These loans and minor unlisted share investments are assumed to have a carrying value that approximates fair value.  
                       
  TRADE AND OTHER PAYABLES                      
  The carrying amounts of accounts payable denominated in rand approximate fair value because of the short-term nature of these liabilities. The carrying values of accounts payable denominated in foreign currencies have been converted at the rate of exchange ruling on the last day of the financial year. These amounts approximate fair value because of the short-term nature of these instruments.  
  The Quince short-term borrowings approximate fair value because of their short-term nature.  
                       
  FORWARD EXCHANGE CONTRACTS                      
  Fair value represents the foreign currency value of the exchange contracts converted at the forward rate that could have been obtained at the year-end on a similar contract to the same maturity date.  
                       
  INTEREST RATE SWAPS                      
  Fair value represents the net market value of equivalent instruments at balance sheet date.  
                       
  OPTIONS (GROUP AND COMPANY)                     
  NSN                      
  Refer to note 14.                      
                       
  POWERHOUSE/ATC TRANSACTIONS                      
  The agreement with Powerhouse contains certain conditions which result in options for Reunert:  
  Upon the occurrence of certain events (for example, if Powerhouse ceases to be a BEE entity), Powerhouse will be deemed to have offered its equity for sale to Reutech Engineering Services (RES) (a wholly-owned subsidiary of Reunert). The purchase consideration payable by RES is dependent on whether the loan between Powerhouse and Reunert has been fully repaid or not. RES, therefore, has the option to acquire the shares Powerhouse holds in ATC under these circumstances.  
  A fair value for this option cannot be reliably determined, since the equity instrument does not have a quoted market price in an active market and other methods of reasonably estimating the fair value are at this stage inappropriate or unworkable.