for the year ended 30 September

Notes to the annual financial statements

 
      Group   Company
      2011  
Rm  
  Restated  
2010  
Rm  
  2011  
Rm  
  2010  
Rm  
20.   Long-term borrowings                  
  Secured – at amortised cost                  
  Long-term loans     0,1     699,91     –     –  
  Finance leases     0,7     0,3     41,8     44,2  
  Less: Short-term portion     (0,1)    (0,1)    (3,2)    (2,4) 
  Total secured     0,7     700,1     38,6     41,8  
  Unsecured – at amortised cost                  
  Long-term loans     7,0     10,8          
  Less: Short-term portion     (7,0)    –          
  Total unsecured     –     10,8          
  Long-term borrowings     0,7     710,9     38,6     41,8  
 
1 In February 2011 Quince repaid its long-term securitised borrowings. The Quince long-term loan of R699,9 million was disclosed as a long-term loan in 2010.
               
  Amounts payable under finance leases                  
  Total minimum lease payments     0,7     0,1     59,4     66,3  
  < 1 year     0,1     0,1     7,4     6,9  
  1 – 5 years     0,6     –     35,8     33,3  
  > 5 years     –     –     16,2     26,1  
  Less: Future finance charges     –     –     (17,6)    (22,1) 
  < 1 year     –     –     (4,2)    (4,5) 
  1 – 5 years     –     –     (12,1)    (14,3) 
  > 5 years     –     –     (1,3)    (3,3) 
  Present value of minimum lease payments     0,7     0,1     41,8     44,2  
  < 1 year     0,1     0,1     3,2     2,4  
  1 – 5 years     0,6     –     23,7     19,0  
  > 5 years     –     –     14,9     22,8  
  Reunert entered into a lease agreement with Quince, taken over by RFCL on 1 September 2007, whereby the 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.