for the year ended 30 September

Notes to the annual financial statements

 
       Group      Company  
    Cost  
Rm  
Accumulated  
depreciation  
and  
impairments  
Rm  
Net  
book  
value  
Rm  
Cost  
Rm  
Accumulated  
depreciation  
and  
impairments  
Rm  
Net  
book  
value  
Rm  
10.   Property, plant and equipment and investment property              
  2011              
  Investment property:   9,7   0,6   9,1   101,7   4,3   97,4  
  Freehold land   5,7   –   5,7   22,4   –   22,4  
  Freehold buildings   4,0   0,6   3,4   79,3   4,3   75,0  
  Property, plant and equipment:   1 333,3   730,2   603,1   449,1   278,7   170,4  
 
Owner occupied: Freehold land
42,1   –   42,1   7,5   –   7,5  
 
  Freehold buildings  
147,3   21,4   125,9   32,1   11,7   20,4  
 
  Leasehold buildings  
65,1   35,8   29,3   49,9   23,5   26,4  
  Plant and equipment   1 012,2   643,0   369,2   340,4   233,2   107,2  
  Vehicles   48,8   30,0   18,8   15,0   10,3   4,7  
  Capital work-in-progress   17,8   –   17,8   4,2   –   4,2  
    1 343,0   730,8   612,2   550,8   283,0   267,8  
               
  2010              
  Investment property1:   10,9   0,6   10,3   66,0   2,1   63,9  
  Freehold land   6,2   –   6,2   19,7   –   19,7  
  Freehold buildings   4,7   0,6   4,1   46,3   2,1   44,2  
  Property, plant and equipment1:   1 252,9   669,4   583,5   438,0   260,3   177,7  
 
Owner occupied: Freehold land
38,9   –   38,9   7,5   –   7,5  
 
  Freehold buildings  
108,5   18,2   90,3   32,1   10,7   21,4  
 
  Leasehold buildings  
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  
 
1 The 2010 information has been split to show the Investment property separately from Property, plant and equipment.  
   
    Investment  
property  
land  
Rm  
Buildings  
Rm  
Owner  
occupied  
land  
Rm  
Buildings  
Rm  
Plant  
and  
equipment  
Rm  
Vehicles  
Rm  
Capital  
WIP  
Rm  
  2011  
Total  
Rm  
  2010  
Total  
Rm  
  Movement in property, plant and equipment: Group                        
  Net book value at the beginning of the year   6,2   4,1   38,9   125,7   351,7   18,0   49,2     593,8     559,3  
  Acquisition of businesses   –   –   –   0,2   39,3   1,6   –     41,1     23,7  
  Additions   –   –   2,7   10,0   60,1   6,1   1,4     80,3     119,7  
  Disposals   –   –   –   –   –   (0,6)  (6,0)    (6,6)    –  
  Transfers   (0,5)  (0,7)  0,5   25,0   2,5   –   (26,8)    –     (4,6) 
  Transfers to inventory   –   –   –   –   (1,1)  –   –     (1,1)    (2,3) 
    5,7   3,4   42,1   160,9   452,5   25,1   17,8     707,5     695,8  
  Depreciation   –   –   –   (5,7)  (83,3)  (6,3)  –     (95,3)    (96,4) 
  Impairment   –   –   –   –   –   –   –     –     (5,6) 
    5,7   3,4   42,1   155,2   369,2   18,8   17,8     612,2     593,8  
  Movement in property, plant and equipment: Company                        
  Net book value at the beginning of the year   19,7   44,2   7,5   51,9   84,1   5,0   29,2     241,6     193,9  
  Acquisition of businesses   –   –   –   0,2   34,5   0,1   –     34,8     –  
  Additions   2,7   8,7   –   –   10,1   1,8   –     23,3     78,1  
  Disposals   –   –   –   –   –   (0,1)  –     (0,1)    (1,9) 
  Transfers   –   24,3   –   –   2,2   –   (25,0)    1,5     13,0  
    22,4   77,2   7,5   52,1   130,9   6,8   4,2     301,1     283,1  
  Depreciation   –   (2,2)  –   (5,3)  (23,7)  (2,1)  –     (33,3)    (35,9) 
  Impairment   –   –   –   –   –   –   –     –     (5,6) 
    22,4   75,0   7,5   46,8   107,2   4,7   4,2     267,8     241,6  
  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 R50,7 million (2010: R46,4 million).

The fair value of the group’s investment properties at 30 September 2009 has been arrived on at the basis of valuations carried out at that date by Gensec Property Services Limited t/a JHI, independent valuers not related to the group. JHI is a member of the SA Institute of Valuers, and they have appropriate qualifications and recent experience in the valuation of properties in the relevant locations.

The valuations, which conform to International Valuation Standards, were arrived at by using various methodologies, including the most commonly used discounted cashflow approach. Subsequently fair value was adjusted to 2011 values using relevant building price indices to determine value increases.  
  3. Useful lives used for the following categories:

Buildings
Plant
Office equipment
Computer equipment
Furniture
Vehicles
12 to 50 years
5 to 33 years
5 to 20 years
3 to 10 years
5 to 20 years
3 to 12 years
  4. The insurable value of the group’s property, plant and equipment as at 30 September 2011 amounted to R4,0 billion (2010: 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.