Inhoud. Contents OVERBERG AGRI LIMITED AND ITS SUBSIDIARIES OVERBERG AGRI BEPERK EN SY FILIALE. Bladsy/Page. Maatskappy inligting. Company information

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2 Inhoud Contents Bladsy/Page Maatskappy inligting 2 Company information Organogram 4 Organogram Bedryfsoorsig 6 11 Operational Overview Korporatiewe Bestuur Corporate Governance Direkteure se verantwoordelikheid Directors responsibility Sertifikaat van die Maatskappysekretaris 20 Certificate of the Company Secretary Verslag van die Onafhanklike Ouditeure Report of the Independent Auditors Direkteursverslag Directors' Report Balansstaat 28 Balance Sheet Inkomstestaat 29 Income Statement Kontantvloeistaat 30 Cash Flow Statement Staat van Ekwiteitsveranderinge 31 Statement of Changes in Equity Aantekeninge tot die finansiële jaarstate Notes to the annual financial statements Bylaes tot die finansiële jaarstate Annexures to the annual financial statements

3 Maatskappy inligting Company information REGISTRASIENOMMER 1998/001018/06 DIREKTEURE WA Agenbach (Voorsitter) D de Kock (Ondervoorsitter) R Pheiffer (Besturende Direkteur) RR Blom LE Coetzer * DG de Kock DC Human HP Marais JG Muller # J v/d M Rossouw MJ Roux HG Schönfeldt JG van Deventer AJ Uys * JP Viljoen = Ouditkomitee * = Aangestel in terme van n Raadsbesluit op 29 Februarie as Uitvoerende Direkteure # = Oorlede op 6 Mei 2008 REGISTRATION NUMBER 1998/001018/06 DIRECTORS WA Agenbach (Chairperson) D de Kock (Vice Chairperson) R Pheiffer (Managing Director) RR Blom LE Coetzer * DG de Kock DC Human HP Marais JG Muller # J v/d M Rossouw MJ Roux HG Schönfeldt JG van Deventer AJ Uys * JP Viljoen = Audit committee * = Appointed in terms of a Board resolution on 29 February 2008 as Executive Directors # = Deceased on 6 May 2008 SEKRETARIS A Steyn Donkinstraat 7 CALEDON SECRETARY A Steyn 7 Donkin Street CALEDON EKSTERNE OUDITEURE PRICEWATERHOUSECOOPERS ING. EXTERNAL AUDITORS PRICEWATERHOUSECOOPERS INC. INTERNE OUDITEURE BOSHOFF VISSER BREDASDORP ING. INTERNAL AUDITORS BOSHOFF VISSER BREDASDORP INC. GEREGISTREERDE KANTOOR Posbus 50 CALEDON REGISTERED OFFICE PO Box 50 CALEDON BESIGHEIDSADRES Donkinstraat 7 CALEDON BUSINESS ADDRESS 7 Donkin Street CALEDON WEBTUISTE WEBSITE 2

4 doelgerig 3

5 4 Avello Kaap (Africa s Best 323) (Edms) Bpk / (Pty) Ltd

6 skilled 5

7 Bedryfsoorsig Operational Overview Die aktiwiteite van die Overberg Agri Groep, gesien teen die agtergrond van die onlangse samesmelting, het gedurende die jaar onder oorsig grootliks genormaliseer en n sterk fokus is steeds in terme van die Direksie se strategie op interne bedrywighede geplaas. Alle bedryfsaktiwiteite is deurlopend geëvalueer in terme van potensiaal en geleenthede. Die doelwit van die Groep, naamlik om n volhoubare en gefokusde landboubesigheid te handhaaf en om terselfdertyd ook welvaart te skep tot voordeel van aandeelhouers en ander belangegroepe, is deur die Direksie herbevestig. Die strategiese raamwerk en die gepaardgaande beplannings is deur die loop van die jaar, op grond van die herbevestiging van die doelwitte, hersien. Oor die algemeen beskou, is goeie vordering gemaak teenoor die vooropgestelde doelwitte. Die resultate weerspieël die huidige potensiaal van die onderneming en n stewige grondslag is daargestel waarvandaan die onderneming verder kan groei. Gedurende die jaar is twee verkrygings gemaak, naamlik Boltfast, n onderneming wat spesialiseer in die koop en verkoop van industriële hegstukke, asook die Toyota Agentskap op Bredasdorp. Beide hierdie ondernemings het reeds n positiewe bydrae gemaak tot die netto wins van die onderneming. Sekere na-balansstaat-gebeure verdien gemeld te word, naamlik die verkoop van die nuut toegekende Pioneerregte ten bedrae van R7,000,000 asook die verkoop van die SABM-belegging ten bedrae van R23,500,000. Dit is die Direksie se mening dat geeneen van hierdie transaksies die onderneming enigsins strategies beïnvloed nie. INKOMSTESTAAT Die Inkomstestaat vergelyk baie positief teenoor die voorafgaande periode. Die begrotings deur Bestuur daargestel en wat dien as n maatstaf vir prestasie, is in totaliteit oorskry. Die netto wins voor belasting van R57 miljoen is beïnvloed deur hoofsaaklik die volgende inskrywings van wesenlike aard: Die voorsiening vir die uitbetaling van n winsbonus aan kliënte van R6,250,000; Rente verdien op n moutgarsfinansieringskontrak van R5,000,000; The activities of the Overberg Agri Group, viewed against the background of the recent merger, largely normalised during the year under review. A strong focus was still placed on internal operations in terms of the Board s strategy. All operational activities were continuously analysed in terms of potential and opportunities. The objective of the Group, namely to maintain a sustainable and focused agricultural business whilst simultaneously creating wealth to the benefit of shareholders and other interest groups, was reconfirmed by the Board. Based on the reconfirmation of the objectives, the strategic framework and related planning was reviewed in the course of the year. In general, good progress was made with the set objectives. The results reflect the current potential of the enterprise and a sound foundation was established from which the enterprise can grow further. During the year two acquisitions were made, namely Boltfast, an enterprise specialising in buying and selling industrial fasteners, as well as the Toyota Dealership in Bredasdorp. Both these enterprises have already made a positive contribution to the net profit of the enterprise. Certain post-balance sheet events deserve to be mentioned, namely the sale of the newly awarded Pioneer rights to the amount of R7,000,000 as well as the sale of the SABM investment for R23,500,000. The Board is of the opinion that none of these transactions influence the enterprise strategically in any manner whatsoever. INCOME STATEMENT The Income Statement compares very positively with that of the previous period. The budgets set by Management that serve as a measure for performance, were exceeded overall. The net profit before taxation of R57 million was mainly influenced by the following entries: The provision for the payment of a profit bonus to clients of R6,250,000; Interest earned on a barley financing contract of R5,000,000; The provision of performance bonuses to personnel of R6,500,000. 6

8 Die voorsiening van prestasiebonusse aan personeel van R6,500,000; Leenkoste wat direk toeskryfbaar is aan die verkryging, oprigting of produksie van 'n kwalifiserende bate is gekapitaliseer as deel van die koste van daardie bate. In die vorige finansiële jare is hierdie kostes direk afgeskryf in die Inkomstestaat. BALANSSTAAT Die Groep se Balansstaat is gesond en sterk. Die netto batewaarde beloop tans R786 miljoen en verteenwoordig n netto batewaarde van R100 per aandeel. Die billike waarde van beskikbaar-vir-verkoop-beleggings is aangepas na markwaarde vir die Pioneer-aandele en na die verkoopswaarde vir The South African Breweries Maltingsaandele. Die waardasie van die Pioneer Foods-aandele het aanleiding gegee tot n daling in die billike markwaarde en word op die Staat van Ekwiteitsveranderinge getoon. Die daling in die netto batewaarde is uitsluitlik as gevolg van hierdie laer waardasie van die Pioneer Foods-aandele. Hierdie aandele het op 29 Februarie 2008 (of die naaste datum in Februarie) verhandel teen R27,00 per aandeel teenoor R31,50 per aandeel op die ooreenstemmende datum van die voorafgaande jaar. Dit impliseer dus n reële waardedaling van R75,361,550, of te wel, R9.61 per Overberg Agri-aandeel. Die Direksie is nie bekommerd oor hierdie verloop nie en beskou die belegging steeds as van strategiese belang en glo dat Pioneer Foods as onderneming baie waarde inhou en oor baie groeipotensiaal beskik. Pioneer Foods, waarin die Groep 'n belegging het, is nabalansstaatdatum op die JSE genoteer. Pioneer Foods het daarna 'n regte-uitgifte aangekondig en die Maatskappy het besluit om nie die regte op te neem nie, maar om die reg daartoe, na die balansstaatdatum, te verkoop. Die Maatskappy het sy belegging in voorkeuraandele in The South African Breweries Maltings verkoop en die transaksie is na die balansstaatdatum suksesvol afgehandel. Die verkryging van Boltfast en die Toyota Agentskap op Bredasdorp, gedurende die jaar, het aanleiding gegee tot n toename in veral ontasbare bates. Vooruitbetalings is gemaak aan verskaffers om kunsmisgrondstowwe se verskaffing en pryse te verseker vir die komende seisoen in die lig van die tekorte en gepaardgaande prysstygings van sekere kunsmisgrondstowwe wat wêreldwyd ervaar word. Die Groep het daardeur n wesenlike besparing vir sy kliënte Loan costs directly attributable to the acquisition, establishment or production of a qualifying asset were capitalised as part of the costs of that asset. In previous financial years these costs were directly written off in the Income Statement. BALANCE SHEET The Group s Balance Sheet is healthy and strong. The net asset value currently amounts to R786 million and represents a net asset value of R100 per share. The fair value of available-for-sale investments was adjusted to market value for the Pioneer Foods shares and to the sales value for the The South African Breweries Maltings shares. The valuation of the Pioneer Foods shares resulted in a decrease in the fair market value and is shown on the Statements of Changes in Equity. The decrease in the net asset value is solely due to this lower valuation of the Pioneer Foods shares. On 29 February 2008 (or the closest date in February) these shares traded at R27.00 per date as apposed to the R31.50 per share at the corresponding date of the previous year. This implies a real impairment of R75,361,550, or rather, R9.61 per Overberg Agri share. The Board is not concerned about this and continues to view the investment of strategic importance and believe that Pioneer Foods, as an enterprise, holds much value and growth potential. Pioneer Foods, in which the Group has an investment, was listed on the JSE post-balance sheet date. Thereafter Pioneer Foods announced a rights issue and the Company decided not to take up the rights, but to sell the right thereto. The Company sold its investment in preference shares in The South African Breweries Maltings and the transaction was successfully concluded after the balance sheet date. The acquisition of Boltfast and the Toyota Dealership in Bredasdorp, the year, resulted in an increase in mainly intangible assets. Prepayments were made to suppliers to ensure the supply of raw materials for fertiliser for the coming season. The Group thus ensured a significant saving for its clients, in view of the shortages and related price increases of certain raw materials for fertiliser experienced globally. The inventory figures have been influenced by a facility in terms of a three-party Milldoor contract concluded with Rand Merchant Bank and The South African Breweries Maltings, in terms of which the malting barley, which serves as security for the facility, becomes the property of the 7

9 verseker. Die voorraadsyfers word beïnvloed deur n fasiliteit in terme van n drieparty Milldoor-kontrak gesluit met Rand Aksep Bank en The South African Breweries Maltings, in terme waarvan die moutgars, wat as sekuriteit dien vir die fasiliteit, die eiendom van die Groep word tot en met lewering. Oor die algemeen het stygende insetkostes en kommoditeitspryse n impak op die Groep se Balansstaat. Sekere nie-strategiese beleggingseiendom, ter waarde van R2,581,585 is verkoop in terme van die Groep se beleid. Die Groep het n aanbod gemaak aan die minderheidsaandeelhouers van Bredasdorp Slagpale wat die aanbod aanvaar het. Na aanleiding hiervan besit Overberg Agri 100% van die uitgereikte aandele van Bredasdorp Slagpale. Die aanbouings van die stoomtonnel by Promeal is voltooi terwyl die hidroksied-aanleg by Bontebok Lime Works ook suksesvol in gebruik geneem is. Die Groep het n dividend verklaar en betaal uit opgelope inkomste. KONTANTVLOEI Die Groep finansier meer as 90% van sy omset, wat beteken dat die Groep se kontant hoofsaaklik uit bewegings in debiteure gediens word en nie uit wins nie. Debiteure is seisoenaal van aard deurdat dit n laagtepunt bereik na afhandeling van die graanoes einde Desember (R70 miljoen) en n hoogtepunt tot net voor die insameling van die nuwe seisoen se graanoes einde Oktober (ongeveer R500 miljoen). Die Groep het sy finansieringsfasiliteit weer met Landbank hernu. As gevolg van die buitengewone aanpassings in die koerse waarteen Landbank geld uitleen, is die finansieringsmarges relatief laag teenoor die verlede. Na aanleiding van die toenemende finansieringsbehoeftes, noodsaak hierdie verwikkelinge die onderneming om alternatiewe bronne van finansiering te oorweeg. BEDRYFSAKTIWITEITE Die verskaffing van finansiering het oor tyd ontwikkel in n wesenlike aktiwiteit van Overberg Agri. As gevolg van die omvang van kredietverskaffing, is die bestuur van hierdie risiko van groot belang en word baie fokus hierop geplaas. Gedurende die jaar onder oorsig het bedrae as agterstallige debiteure wesenlik gedaal en is die posisie tans baie gunstig. Die verwagting is duidelik dat die Group until delivery. Generally speaking, rising input costs and commodity prices have had an impact on the Balance Sheet of the Group. Certain non-strategic investment properties to the value of R2,581,585 were sold in terms of the Group s policy. The Group made an offer to the minority shareholders of Bredasdorp Abattoir, who accepted the offer. As a result, Overberg Agri now owns 100% of the issued shares of Bredasdorp Abattoir. The construction of the steam tunnel at Promeal was completed, while the hydrated lime plant at Bontebok Lime Works was also successfully commissioned. The Group declared and payed a dividend from accumulated income. CASH FLOW The Group finances more than 90% of its turnover, meaning that the Group s cash is serviced mainly from movements in debtors and not from profits. Debtors are seasonal in nature as they reach a low after the end of the grain harvest at the end of December (R70 million) and reached its peak shortly before the reaping of the new season s grain harvest at the end of October (approximate R500 million). The Group has once again renewed its financing facility with the Land Bank. Due to the extraordinary adjustments in the rates at which the Land Bank lends money, the financing margins are relatively lower than previously. Due to an increasing need for financing, this development has necessitated the consideration of alternative sources of finance. OPERATING ACTIVITIES The granting of financing has developed over time in a material activity of Overberg Agri. Due to the extent of credit provision, the management of this risk is of great importance and much focus is placed on this. In the year under review, debtors in arrears have decreased substantially, and the position is currently very favourable. Clearly the expectation is that the rising input costs may result in a significant increase in debtors. The results of the Product division were positively influenced by an above-average crop in the region, especially with regards to the wheat yield. During the year under review 283,594 tons of grain were stored in the silos, which have an available capacity of 277,000 tons. Rain during harvest time had an impact on the quality of wheat and malting barley. A small amount of malting barley was rejected 8 CAM MOTORS

10 stygende insetkostes egter n wesenlike toename in debiteure tot gevolg kan hê. Die Produkte-afdeling se resultate is positief beïnvloed deur n bogemiddelde oes in die streek, veral met betrekking tot koringopbrengste. Gedurende die jaar onder oorsig is 283,594 ton graan in die silo s met n beskikbare kapasiteit van 277,000 opgeberg. Reën tydens oestyd het egter n impak gehad op die kwaliteit van koring en moutgars. n Beperkte hoeveelheid moutgars is in die finansiële periode onder oorsig weens ontkiemingsenergie, afgekeur. As gevolg van goeie voerpryse, kon die afgekeurde moutgars as voer vir meer verkoop word as die waarde van moutgars self en geen finansiële verliese is dus gely nie. Die risiko s gepaardgaande met graanopberging geniet voortdurend aandag. Daar word met deurlopende instandhouding van infrastruktuur, opgradering en dienste sterk op die behoeftes van die graanprodusent gefokus. Die Landbou-ontwikkelingsafdeling fokus voortdurend op die behoeftes van kliënte deur toepaslike navorsing en proewe op die maatskappy se proefplaas, Roodebloem, asook die insameling en verspreiding van relevante inligting. Die afdelings is ook in n ondersteunings hoedanigheid betrokke by projekte vir opkomende boere in die gebied. Overberg Agri se Handel- en Meganisasie-aktiwiteite bestaan uit tien kleinhandelstakke, drie meganiese werkswinkels, drie ingenieurswerkswinkels en drie onderdele-afdelings. Hierdie aktiwiteite is primêr gefokus op die behoeftes van die streek se landbou en fokus op die diens van die landboumark met kundigheid, gefokusde landbouprodukte en toerusting. Handel het die afgelope jaar daarin geslaag om n groot bydrae te lewer tot die beperking van stygende landbouinsette deur strategiese aankope te doen. Die voortgesette bemarkingsaksies in die wingerd- en vrugtestreke het die afgelope jaar ook n merkbare verskil gemaak in handel se inkomste. Meganisasie het die afgelope jaar n Claas-agentskap bekom en dit het die onderneming in staat gestel om n positiewe groei op heelgoedere te bewerkstellig. Verdere fokus word geplaas op die vestiging en uitbreiding van bemarkingsaksies en om mededingendheid te verhoog deur intensiewe onderhandeling met insetverskaffers deur strategiese vennootskappe te vestig wat ondersteunend is tot volhoubaarheid van die landbou. Bedryfstelsels word deurlopend geëvalueer, aangepas en due to germination energy in the period under review. As a result of good feed prices the rejected malting barley could be sold as feed for more than the value of the malting barley itself, and no financial lossed were thus suffered. The risks associated with grain storage are continually attended to. Through the continuous maintenance of infrastructure, upgrading and services, the needs of the grain producer are strongly focussed on. The Agricultural Development division continually focuses on the needs of clients by doing appropriate research and experiments on the Company s experimental farm, Roodebloem, as well as collecting and disseminating relevant information. The division is also involved, in a supporting capacity, in projects for emerging farmers in the area. The Retail and Mechanisation activities of Overberg Agri consist of ten retail branches, three mechanical workshops, three engineering workshops and three parts outlets. These activities focus primarily on agricultural needs in the region. Therefore the composition of the business is based on serving the agricultural market with expertise and focussed agricultural products and equipment. Retail managed to make a large contribution during the year by limiting the rising agricultural input costs through making strategic purchases. The continued marketing actions in the vine and fruit regions also made a noticeable difference in retail s income during the year. Mechanisation acquired a Claas Dealership during the year and this enabled the enterprise to achieve positive growth on whole goods. Continuous emphasis is placed on establishing and expanding marketing actions and enhancing competitiveness through intensive negotiations with input suppliers by establishing strategic partnerships that will support the sustainability of agriculture. Operating systems are continuously evaluated, adjusted and developed to manage efficiency. Client service, backed by the continuous training of personnel, is a priority. We aim to provide each employee with the required expertise to add value to each transaction. The Insurance activities, consisting of short-term, life and medical insurance, are making an ever greater contribution. Good growth was experienced during the year and the division is making a contribution to the profitability of the enterprise. Avello Kaap (Africa s Best 323), an agrichemicals concession, markets agrichemical infestation and pest 9

11 ontwikkel ten einde effektiwiteit te bestuur. Kliëntediens, gerugsteun deur deurlopende opleiding aan personeel, word vooropgestel om aan elke personeellid die kundigheid te voorsien wat nodig is om waarde toe te voeg tot elke transaksie. Die Versekeringsaktiwiteite, bestaande uit korttermyn-, lewens- sowel as mediese versekering, lewer toenemend n groot bydrae. Goeie groei is die jaar getoon en die afdeling lewer n bydrae tot die winsgewendheid van die onderneming. Avello Kaap (Africa s Best 323), n landbou chemikalieë-konsessie, bemark deur kundige agente regdeur die Overberg-streek landbouchemiese plaag- en pesbeheer-produkte. Avello Kaap is in sy tweede seisoen van besigheid en kon reeds in die kort tydperk daarin slaag om waarde toe te voeg tot die onderneming en tot die primêre landbou deur mededingende pryse daar te stel maar om ook as barometer vir pryse en diens te dien. Bredasdorp Slagpale bied slaggeriewe vir die slag van skape en beeste. Om deel te bly van die toegevoegde waardeketting sal die maatskappy binnekort wil betrokke raak by die verdere verwerking van karkasse en afval. Gedurende die jaar het die onderneming positief bygedra tot die winsgewendheid van die Groep. As gevolg van n beplande behuisingsprojek deur die plaaslike munisipaliteit, bestaan daar tans kommer oor die volhoubaarheid van die huidige fisiese posisie te Bredasdorp. Geen gemoedsrus kon tot dusver van die Kaap Agulhas Munisipaliteit ten opsigte hiervan bekom word nie. Promeal vervaardig, versprei en bemark nat troeteldierkos landswyd en ook in sommige buurlande. Die maatskappy besit die bekende handelsmerke: Petley s, Boss en Top Cat. Gedurende die jaar onder oorsig is verskeie aanvullende produkte ontwikkel wat sal bydra tot die groei van hierdie maatskappy. Die maatskappy het n positiewe bydrae tot die resultate van die Groep gelewer. Bontebok Lime Works, n kalkmyn te Bredasdorp produseer hidroksied, voerkalk en landboukalk. Die projek om die produksiekapasiteit van hidroksied te verhoog is in Januarie 2008 voltooi. Die onderneming het n positiewe bydrae tot die resultate van die Groep gelewer en sal toenemend bydra tot die Groep se winsgewendheid. CAM Motors besit n General Motors- en Toyotaagentskap en vier brandstofvulstasies. Die Toyotaagentskap is op 1 September 2007 verkry. Die maatskappy is tans in die proses om die fasiliteite by Bredasdorp op control products through skilled agents throughout the Overberg region. Avello Kaap is in its second season of business and has already succeeded in this short time to add value to the enterprise and to the primary agricultural sector by not only establishing competitive prices, but also serving as barometer for prices and service. Bredasdorp Abattoir provides slaughtering facilities for sheep and cattle. To remain part of the chain of added value, the company would like to become involved in the further processing of carcases and offal in the near future. During the year the enterprise made a positive contribution to the profitability of the Group. Due to a housing project as planned by the local municipality, there is some concern at present about the sustainability of the current physical location in Bredasdorp. No assurance could thus far be obtained from the Cape Agulhas Municipality in this regard. Promeal manufactures, distributes and markets wet pet food throughout the country and in a some neighbouring countries. The company owns well known brand names such as Petley s, Boss and Top Cat. During the year under review various supplementary products were developed that will contribute to the growth of this company. The company made a positive contribution to the results of the Group. P&B Lime, a lime mine at Bredasdorp, produces hydroxide, feed lime and agricultural lime. The project for increasing the production capacity of hydroxide was completed in January The enterprise has made a positive contribution to the results of the Group and will increasingly contribute to the profitability of the Group. CAM Motors owns a General Motors and Toyota Dealership and four filling stations. The Toyota Dealership was acquired on 1 September The company is currently in the process of upgrading the facilities in Bredasdorp. Performance that was realised due to good vehicle sales was largely negated by an internal fraud matter at one of the filling stations where cash was embezzled. Boltfast, a company in Epping, markets and distributes industrial fasteners throughout the country. This company, which was acquired on 1 November 2007, has already made a positive contribution to the results of the Group, and will increasingly contribute to its profitability. PROSPECTS More than three years have already passed since the merger. As may have been expected, this period brought extensive changes and adjustments. We are delighted that Overberg Agri has now settled into becoming an increasingly important 10

12 te gradeer. Prestasie wat as gevolg van goeie voertuigverkope gerealiseer het, is grootliks ongedaan gemaak deur n interne bedrog-aangeleentheid by een van die brandstofdiensstasies waar kontant verduister is. Boltfast, n maatskappy in Epping, bemark en versprei industriële hegstukke aan n verskeidenheid van gebruikers in die land. Hierdie maatskappy is op 1 November 2007 verkry en het reeds n positiewe bydra tot die resultate van die Groep gelewer en sal toenemend bydra tot die Groep se winsgewendheid. VOORUITSIGTE Meer as drie jaar het reeds verloop sedert die samesmelting. Soos verwag kon word, het hierdie tydperk met omvangryke veranderings en aanpassings gepaard gegaan. Verblydend egter is dat Overberg Agri nou gevestig is en toenemend as n wesenlike rolspeler in die streek en in die bedryf geag word. Nie net het die verwagte inkomstepotensiaal gerealiseer nie, maar begin die spesifieke strategiese bestuursmodel vrugte afwerp. Die Direksie en Bestuur van die onderneming het erns met die doelwitte en is trots op dit wat vermag word. Die potensiaal van Overberg Agri gryp die verbeelding uit wye oorde aan en sal deur gefokusde toegewydheid van personeel verder ontwikkel word. Vooruitsigte, inaggenome die ekonomiese vooruitskouings, is steeds positief. Vele aanpassings in benadering sal egter oorweeg word, waaronder n baie sterk bewustheid van kostebestuur en effektiwiteit. Voorts is daar ook onbeperkte geleenthede waarop die onderneming ter wille van al sy belanghebbendes sal fokus. roleplayer in the region and industry. Not only was the expected income potential realised, but the specific strategic management model has also started to bear fruit. The Board and Management of the enterprise are committed to the objectives and are proud of its accomplishments. The potential of Overberg Agri grabs the imagination from far afield and will be further developed through the focused dedication of its personnel. Prospects, with due observance of the economic prospects, remain positive. Many adjustments will have to be considered, including a very strong awareness of cost management and effectiveness. There are unlimited opportunities on which the enterprise will focus for the benefit of all its stakeholders. ACKNOWLEDGEMENT Acknowledgement and thanks are hereby expressed to all shareholders and clients, without whom the enterprise would have no right of existence. Thank you for your participation and support. A special word of thanks goes to all personnel for the way in which the objectives of the Group were pursued during the year. This is with the knowledge of total dependency and gratitude that all honour for our existence and performance is owed to our Heavenly Father. Rian Pheiffer Managing Director ERKENNING Erkenning en dank hiermee aan alle aandeelhouers en kliënte sonder wie die onderneming geen bestaansreg het nie. Dankie aan elkeen se deelname en ondersteuning. n Besondere woord van dank aan alle personeel vir die wyse waarop die doelwitte van die Groep nagestreef is gedurende die jaar. Dit is ook met die wete van totale afhanklikheid en dankbaarheid dat alle eer vir ons bestaan en prestasies ons Hemelse Vader toekom. Rian Pheiffer Besturende Direkteur 11

13 12 bedrewe

14 Korporatiewe Bestuur Corporate Governance STRATEGIE Die doelwit van die Overberg Agri Groep is die handhawing van n volhoubare en gefokusde besigheid en om welvaart te skep tot voordeel van die aandeelhouers en ander belangegroepe in die Groep. Die strewe na n volhoubare, welvarende en groeiende landboumaatskappy word vergestalt deur n gefokusde maatskappystruktuur. Die een been van hierdie struktuur bestaan uit n landbouondersteunende maatskappy en die ander been bestaan uit n beleggingsondersteunende maatskappy. Die filosofie agter die maatskappystruktuur is om as Groep volhoubaar te wees, om n rol te speel in die volhoubaarheid van landboukliënte en om besighede te bedryf waardeur welvaart opgebou word vir die Maatskappy, sy aandeelhouers en ander belanghebbendes. Direksie Die Direksie is verbind tot billikheid, deursigtigheid, verantwoordelikheid en eerbaarheid teenoor alle belanghebbendes. Die Direksie sowel as personeel streef voortdurend na die nakoming en voldoening van goeie korporatiewe bestuursbeginsels, sowel as voldoening aan n etiese gedragskode. Voldoening aan hierdie beginsels word voortdurend geëvalueer en tekortkominge word aangespreek. Die toepassing van goeie korporatiewe bestuursbeginsels en die effektiewe beheer en bestuur van die Groep is primêr die Direksie se verantwoordelikheid. Die Direksie is verbind tot die behoorlike nakoming van hul pligte en verantwoordelikhede soos uiteengesit in wetgewing en die Maatskappy se Statute. Ooreenkomstig Overberg Agri se Statute bestaan die Direksie vanaf 2006 uit 12 nie-uitvoerende Direkteure, waarna die Direksie, na afloop van die Algemene Jaarvergadering in 2008 sal verminder na 10 nie-uitvoerende Direkteure. Die Voorsitter en Ondervoorsitter van die Direksie is beide nie-uitvoerende Direkteure. Subkomitees word van tyd tot tyd volgens spesifieke behoeftes gevorm om die Direksie behulpsaam te wees met die uitvoering van sy verantwoordelikhede en om fokus op spesifieke aangeleenthede te bewerkstellig. Filiaaldireksies is gevestig na afloop van die Algemene Jaarvergadering in Direkteure vanuit die Groep- STRATEGY It is the objective of the Overberg Agri Group to maintain a sustainable and focussed business and to create wealth for the benefit of shareholders and other stakeholders within the Group. The pursuit of a sustainable, prosperous and growing agricultural company is embodied in a focussed company structure. The one leg is an agriculture-supporting company and the other, an investment-supporting company. The philosophy behind the company structure is to be sustainable as a Group, to play a role in the sustainability of agricultural clients and to operate businesses that build prosperity for the Company, its shareholders and other stakeholders. Board The Board is committed to fairness, transparency, accountability and integrity towards all stakeholders. The Board as well as personnel continually strive towards complying with and meeting the principles of sound corporate governance as well as following an ethical code of conduct. Compliance with these principles is continually evaluated and shortcomings are addressed. Applying sound corporate governance principles and the effective control and management of the Group are primarily the responsibility of the Board. The Board has committed itself to the due fulfilment of their duties and responsibilities as set out in legislation and the Company s Articles. In accordance with Overberg Agri s Articles, the Board has consisted of 12 non-executive Directors since Subsequent to the Annual General Meeting in 2008 this number will be reduced to 10 non-executive Directors. Both the Chairperson and Vice-Chairperson of the Board are non-executive Directors. Subcommittees are established from time to time in response to specific needs to assist the Board in discharging its responsibilities and to facilitate focus on specific matters. Subsidiary boards were established after the Annual General Meeting in Directors from the Group Board serve on these subsidiary boards. These boards were established to increase the focus on the operations of subsidiary companies and thus enable the Board to 13

15 direksie dien op hierdie filiaaldireksies. Die filiaaldireksies is gevestig om meer fokus te plaas op die werksaamhede van die filiaalmaatskappye en gevolglik die Direksie in staat te stel om sy omvangryke verantwoordelikhede na te kom. Oudit- en Risikokomitee Die komitee, aangewys in terme van die vereistes van goeie korporatiewe bestuurspraktyke, funksioneer binne die bepalings van n handves en is primêr getaak om die Direksie by te staan in die uitvoering van sy verantwoordelikheid ten opsigte van die beveiliging van bates, die bedryf van stelsels, kontroleprosesse en die voorbereiding van akkurate finansiële verslae en -state, inaggenome alle toepaslike wetlike vereistes en rekeningkundige standaarde. Die komitee is ook verantwoordelik om toe te sien dat die risikobestuursbeleid, metodologie en standaarde toegepas word. Die eksterne- en interne ouditeure het onbeperkte toegang tot die Oudit- en Risikokomitee. Ooreenkomstig die beginsels van goeie korporatiewe bestuur, dien die Voorsitter van die Direksie sowel as die Besturende Direkteur nie op die komitee nie, maar woon vergaderings op uitnodiging by. Vergoedingskomitee Die Vergoedingskomitee wat hoofsaaklik uit nie-uitvoerende Direkteure bestaan maak aanbevelings aan die Direksie ten aansien van personeel, Bestuur en Direkteure se vergoeding en ander menslike hulpbronaangeleenthede in die Groep. Bywoning van vergaderings Bywoning van Direksie- en Oudit- en Risikokomiteevergaderings word hieronder aangedui. G = geskeduleerde vergaderings / OG = ongeskeduleerde vergaderings / A = afwesig met verskoning. Overberg Agri Groep-direksie 2007 en 2008 OG OG G G OG OG G G G WA Agenbach (V) X X X X X X X X X D de Kock (OV) X X X X X X X X X R Pheiffer X X X X X X X X X RR Blom X X X X X X X X X DG de Kock X X X X X X X X X DC Human X X X X X X X X A HP Marais X X X X X X X X X JG Muller A X X X X X X X A J v/d M Rossouw X X X X X X X X X MJ Roux X X X X X X X X X HG Schönfeldt X X X X X X X X X JG van Deventer X X X X X X X X X JP Viljoen X X X X X X X X X fulfil its extensive responsibilities. Audit and Risk Committee The committee, appointed in terms of the requirements of sound corporate governance practices, functions within the provisions of a charter and has been primarily tasked to assist the Board in discharging its responsibilities in respect of the safeguarding of assets, the operating of systems and control processes and the preparation of accurate financial reports and statements, with due observance of all relevant legal requirements and accounting standards. The committee is also responsible for ensuring that the risk management policy, methodology and standards are adhered to. The external and internal auditors have unlimited access to the Audit and Risk Committee. In accordance with the principles of sound corporate governance neither the Chairperson of the Board nor the Managing Director serve on the committee, but they do attend meetings by invitation. Remuneration Committee A Remuneration Committee, consisting mainly of nonexecutive Directors, makes recommendations to the Board in respect of the remuneration of personnel, Management and Directors and other human resources matters within the Group. Attendance of meetings Attendance of Board and Audit and Risk Committee meetings is indicated below. S = scheduled meetings U = unscheduled meetings A = absent with apology Overberg Agri Group Board 2007 and 2008 U U S S U U S S S WA Agenbach (C) X X X X X X X X X D de Kock (VC) X X X X X X X X X R Pheiffer X X X X X X X X X RR Blom X X X X X X X X X DG de Kock X X X X X X X X X DC Human X X X X X X X X A HP Marais X X X X X X X X X JG Muller A X X X X X X X A J v/d M Rossouw X X X X X X X X X MJ Roux X X X X X X X X X HG Schönfeldt X X X X X X X X X JG van Deventer X X X X X X X X X JP Viljoen X X X X X X X X X 14

16 Oudit- en Risikokomitee 2007 en 2008 G OG G G OG G D de Kock (V) X X X X X X DG de Kock X X X X X X HP Marais X X X X X X Verhandeling van aandele Aandeleverhandeling word ooreenkomstig die Maatskappy se Statuut bestuur en word deur n interne verhandelingsproses hanteer, wat deurlopend aan n interne oudit onderwerp word. n Geslote periode vir verhandeling van aandele deur Direkteure en Bestuur word van tyd tot tyd ingestel, gegrond op die beginsel van meerdere kennis van die Maatskappy se prestasie of potensiële prestasie wat die waarde en/of prys van aandele mag beïnvloed. Aandeleverhandeling gedurende die jaar onder oorsig van Direksie- en Hoofbestuurslede is soos volg: Audit and Risk Committee 2007 and 2008 S U S S U S D de Kock (C) X X X X X X DG de Kock X X X X X X HP Marais X X X X X X Share trading Share trading is managed in accordance with the Company s Articles and operated through an internal trading process, which is continually subjected to an internal audit. A closed period for the trading of shares by Directors and Management is introduced from time to time, based on the principle of additional knowledge of the Company s performance or potential performance that may influence the value and/or price of shares. The trading of shares by Directors and Senior Management during the year under review is as follows: Direkteur/Hoofbestuurslede Aantal aandele gekoop Director/Senior Manager Number of shares bought D de Kock 72 JP Viljoen 1,164 MJ Roux 1,898 J v/d M Rossouw 2,000 Blydskap Trust (J van Deventer) 2,541 Geen aandele is deur Direkteure of Hoofbestuurslede verkoop nie. Interne Beheer en Risikobestuur Die Direksie is verantwoordelik vir die identifisering en bestuur van risiko s. Binne die risikobestuurraamwerk is die wesenlike risiko s geïdentifiseer en Bestuur doen gereeld verslag aan die Direksie en die Oudit- en Risikokomitee hieromtrent. Die doelwitte van die risikoraamwerk, waarbinne risikobestuur toegepas word, is die volgende: 1. Om aan die Direksie die versekering en gerusstelling te gee dat wesenlike risiko s deurlopend geïdentifiseer word; 2. Dat aanvaarbare risikovlakke bepaal word; 3. Dat die risiko s, waar dit redelik moontlik is, verminder word tot hierdie aanvaarbare vlakke; 4. Dat, waar dit nie redelikerwys moontlik is om risiko s te verminder nie, daardie risiko s wel deurlopend gemonitor word; en 5. Om te verseker dat die identifisering van wesenlike risiko s deel vorm van Bestuur en werknemers se normale daaglikse verantwoordelikhede. D de Kock 72 JP Viljoen 1,164 MJ Roux 1,898 J v/d M Rossouw 2,000 Blydskap Trust (J van Deventer) 2,541 No shares were sold by Directors or Senior Management. Internal Control and Risk Management The Board is responsible for identifying and managing risks. The material risks have been identified within a risk management framework and Management regularly report to the Board and Audit and Risk Committee about this. The objectives of the risk framework, within which risk management is applied, are the following: 1. Providing the Board with the assurance that material risks are identified on a continuous basis; 2. Determining acceptable levels of risk; 3. Reducing the risks, where possible, to these acceptable levels; 4. Where it is not reasonably possible to reduce risks, the continuous monitoring of those risks; and 5. Ensuring that the identification of material risks forms part of the normal daily responsibilities of Management and employees. Every year the Group s assets are sufficiently insured against abnormal disasters as well as material risks. CAM MOTORS 15

17 Daar word jaarliks toegesien dat die Groep se bates voldoende verseker is teen abnormale rampe sowel as wesenlike risiko s. n Interne Ouditfunksie, opgedra aan Boshoff Visser, Bredasdorp, bestaan binne die Groep wat primêr gefokus is op die ondersoek van interne beheerstelsels en die bestuur en beheer van geïdentifiseerde risiko s. Die Interne Ouditeur rapporteer direk aan die Oudit- en Risikokomitee aangaande sy werksaamhede. Die beginsels van verantwoordelikheid en toerekenbaarheid word voortdurend beklemtoon, toegepas en ondersteun deur interne beheer en kontrole binne die Groep. In die lig van n onlangse bedrog voorval by die filiaalmaatskappy, CAM Motors, word opnuut hernude fokus op die nakoming en uitvoering van interne beheerstelsels geplaas. Die lopende saak-grondslag is met die opstel van die finansiële state toegepas en, gegrond op voorspellings en beskikbare kontanthulpbronne, het die Direksie geen rede om te glo dat die Groep in die afsienbare toekoms nie n lopende saak sal wees nie. Die lewensvatbaarheid en volhoubaarheid van die Groep word deur die finansiële state ondersteun. Sosiale verantwoordelikheid Overberg Agri is deeglik bewus van sy sosiale verantwoordelikheid teenoor die omgewing, gemeenskap en werknemers en is verbind tot die volhoubare groei, ontwikkeling en beskerming van die omgewing waarbinne die Groep funksioneer. Werknemers is aktief betrokke binne die gemeenskappe waarbinne die Groep bedryf word. Die Groep beskik oor n formele donasiebeleid waarvolgens fokus op die gemeenskappe waarbinne die Groep funksioneer, geplaas word. Transformasie en Swart Ekonomiese Bemagtiging Die Direksie en Bestuur van Overberg Agri erken en ondersteun die beginsels van Swart Ekonomiese Bemagtiging (SEB). Die SEB-komitee was die afgelope jaar veral aktief met die identifisering van potensiële SEB-vennote vir Bontebok Lime Works ten einde te voldoen aan die vereistes vir die hernuwing van die mynlisensie. Etiek Besigheidsetiek vereis van elke Direkteur en werknemer van Overberg Agri om, te alle tye aan hoë morele, etiese en professionele standaarde te voldoen. Formele beleide en gepaardgaande prosesse bestaan waarvolgens Direkteure en werknemers hul belange op gereelde basis verklaar en n geslote periode vir aandeleverhandeling bestaan vir An Internal Audit function, assigned to Boshoff Visser, Bredasdorp, exists within the Group which is primarily focussed on investigating internal control systems and the management and control of identified risks. The Internal Auditor reports directly to the Audit and Risk Committee regarding its operations. The principles of responsibility and accountability are continuously emphasised, applied and supported through internal management and control within the Group. In view of a recent act of fraud at the subsidiary company, CAM Motors, renewed focus is being placed on compliance with and the effectiveness of internal control systems. The going-concern principle was applied in preparing the financial statements and the Board has no reason to believe that the Group will not be a going concern within the foreseeable future, based on the estimates and cash resources available. The viability and sustainability of the Group is supported by its financial statements. Social responsibility Overberg Agri is well aware of its social responsibility towards the environment, community and employees and is committed to the sustainable growth, development and protection of the environment within which the Group functions. Employees are actively involved in the communities within which the Group operates. The Group has a formal donations policy which places the focus on the communities within which the Group functions. Transformation and Black Economic Empowerment The Board and Management of Overberg Agri support the principles of Black Economic Empowerment (BEE). The BEE committee was especially active during the past year in identifying potential BEE partners for Bontebok Lime Works in order to comply with the requirements for the renewal of the mining license. Ethics Business ethics requires that each Director and employee of Overberg Agri complies with high moral, ethical and professional standards at all times. Formal policies and accompanying processes exist requiring Directors and employees to declare their interests on a regular basis and a closed period exists for share trading for Directors and employees at times when they have more knowledge than shareholders. The Group has a formal whistle blower policy that has 16

18 Direkteure en werknemers ten tye wanneer hul oor meerdere kennis as aandeelhouers beskik. Die Groep beskik oor n formele whistle blower- beleid, wat suksesvol toegepas word. Beskerming en vertroulikheid word verleen aan enige een wat ongerymdhede rapporteer. Die Groep kom ook sy verpligting in terme van die Wet op Voorkoming en Bekamping van Korrupsie na deur kriminele sake by die Suid-Afrikaanse Polisiediens aan te meld. Menslike Hulpbronne Die Groep neem ongeveer personeel in diens en daar word deurgaans gepoog om die demografie van die land in die personeelsamestelling te weerspieël. Personeel verbind hulself tot etiese gedrag deur die ondertekening en uitlewing van n Etiese Gedragskode. Nakoming van die gedragskode word deurentyd gemonitor. In die bepaling van personeel se vergoeding word deurgaans gepoog om nasionale salarisvlakke te weerspieël en handhaaf die Groep, waar moontlik n totale koste van indiensnamebeginsel. Verskeie voordele, waaronder aftree- en mediese fondse word aangebied. Met die uitsondering van CAM Motors en Boltfast, is al die personeel van die Groep lede van die Overberg Agri Aftreefonds wat bestaan uit n Pensioen- en Voorsorgfondskomponent. Die Aftreefonds word bestuur deur n Raad van Trustees waarvan die helfte deur die lede van die fonds verkies is en die ander helfte deur die werkgewer aangewys word. Opleiding en ontwikkeling van die personeel van Overberg Agri word beskou as n prioriteit en opleidingsplanne word jaarliks geformuleer. Fokus word veral geplaas op die opleiding van tegnici soos werktuigkundiges en ook bestuursopleiding. Die Groep bied steeds ABET-(lees, syfervaardigheid en skryfopleiding) klasse aan vir personeel en hul families en die personeel wat hieraan deelneem vermeerder voortdurend. Studiebeurse is tot beskikking vir personeel wat tersiêre kwalifikasies wil bekom. Beroepsveiligheid Die voorsiening van n veilige en gesonde werksomgewing is n basiese verantwoordelikheid van die Direksie en formele beleide en prosedures, waarvolgens veiligheid en gesondheid in die werkplek gehandhaaf word, word toegepas. Elke filiaalmaatskappy is verantwoordelik vir die toepassing en bestuur van beroepsveiligheid ooreenkomstig standaarde wat op groepsvlak gestel word. Beroepsveiligheid vorm deel van die Groep se risikobestuursmodel en rapportering geskied aan die Oudit- en Risikokomitee. WA Agenbach R Pheiffer Voorsitter Besturende Direkteur been successfully applied. Protection and confidentiality is granted to anyone reporting irregularities. The Group also fulfils its obligation in terms of the Prevention and Combating of Corrupt Activities Act by reporting criminal offences to the South African Police Service. Human Resources The Group employs about personnel and continually strives to represent the demographics of the country. Personnel commit themselves to ethical conduct by signing and embracing an Ethical Code of Conduct. Compliance with the code of conduct is continuously monitored. In determining the remuneration of personnel an attempt is made throughout to reflect national salary levels and, where possible, the Group applies the principle of total cost of employment. Various benefits, including retirement and medical fund benefits, are available. With the exception of CAM Motors and Boltfast, all personnel of the Group are members of the Overberg Agri Retirement Fund, which consists of a Pension and Provident Fund. The Retirement Fund is managed by a Board of Trustees of whom half were elected by members of the fund and the other half are appointed by the employer. The training and development of the personnel of Overberg Agri is regarded as a priority and training programmes are formulated annually. The training of technicians such as mechanics and management training enjoys high priority. The Group still provides ABET (literacy, numeracy and writing training) classes for personnel and their families and increasing numbers of personnel participate in this programme. Study bursaries are available to personnel who wish to obtain tersiary qualifications. Occupational Safety The establishment of a safe and healthy work environment is a basic responsibility of the Board, and formal policies and procedures for maintaining safety and health in the workplace are applied. Each subsidiary is responsible for applying and managing occupational safety in accordance with standards set at group level. Occupational safety forms part of the Group s risk management model and reporting is done to the Audit and Risk Committee. WA Agenbach R Pheiffer Chairperson Managing Director 17

19 enigmatic 18

20 Direkteure se verantwoordelikheid Directors responsibility Ingevolge die vereistes van die Maatskappywet is die Direkteure verantwoordelik vir die opstel van finansiële jaarstate wat voldoen aan Internasionale Verslagdoeningstandaarde (IFRS) en 'n redelike weergawe bied van die finansiële posisie van Overberg Agri Beperk en sy filiale soos aan die einde van die finansiële jaar, en van die netto wins en kontantvloei vir die tydperk. Die Direkteure is ook verantwoordelik vir die ander inligting in die jaarverslag en vir die akkuraatheid daarvan, sowel as die ooreenstemming daarvan met die finansiële state. Dit is die verantwoordelikheid van die onafhanklike eksterne ouditeure om verslag te doen oor die redelike aanbieding van die finansiële state. Die Direkteure is uiteindelik verantwoordelik vir die Groep se stelsel van interne finansiële beheer. Bestuur stel die Direkteure in staat om hul verantwoordelikheid in hierdie verband na te kom. Standaarde en stelsels van interne kontroles is ontwerp en geïmplementeer deur Bestuur om redelike, maar nie absolute gerusstelling te bied aangaande die integriteit en betroubaarheid van finansiële rekords en die finansiële jaarstate, asook om voldoende beskerming, verifikasie en handhawing van aanspreeklikheid te bied vir die Groep se bates. Toepaslike rekeningkundige beleide, ondersteun deur billike en omsigtige menings en ramings, word op 'n konsekwente en lopende saakgrondslag toegepas. Stelsels en kontroles sluit in die toepassing en delegasie van verantwoordelikhede, doeltreffende rekeningkundige prosedures en voldoende skeiding van pligte. Geen aangeleenthede het onder die aandag van die Direkteure gekom wat 'n wesenlike ineenstorting in die funksionering van hierdie kontroles, prosedures en stelsels gedurende die tydperk onder oorsig, aandui nie. Gebaseer op die inligting en verduidelikings soos deur Bestuur en die interne ouditeure voorsien, is die Direkteure van mening dat die rekeningkundige kontroles voldoende is en dat op die finansiële rekords staat gemaak kan word vir die opstel van die finansiële state en vir die handhawing van aanspreeklikheid vir die Groep se bates en laste. Die Direkteure het 'n redelike verwagting dat die Groep oor voldoende bronne beskik om vir die afsienbare toekoms operasioneel te bly voortbestaan en aanvaar die lopende saakgrondslag vir die opstel van die finansiële state. In terms of the requirements of the Companies Act, the Directors are responsible for preparing annual financial statements that comply with International Financial Reporting Standards (IFRS) and provide a fair presentation of the financial position of Overberg Agri Limited and its subsidiaries as at the end of the financial year, and of the net profit and cash flows for the period. The Directors are also responsible for the other information included in the annual report and for both is accuracy and its consistency with the financial statements. It is the responsibility of the independent external auditors to report on the fair presentation of the financial statements. The Directors are ultimately responsible for the Group s system of internal financial control. Management enables the Directors to comply with their responsibilities in this regard. Standards and systems of internal control are designed and implemented by Management to provide reasonable, but not absolute, assurance as to the integrity and reliability of financial records and of the financial statements and to adequately safeguard, verify and maintain accountability for the Group s assets. Applicable accounting policies, supported by reasonable and prudent judgements and estimates, are applied on a consistent and going concern basis. Systems and controls include the application and delegation of responsibilities, effective accounting procedures and adequate segregation of duties. Nothing has come to the attention of the Directors to indicate a material breakdown in the functioning of these controls, procedures and systems during the period under review. Based on the information and explanations provided by Management and the internal auditors, the Directors are of the opinion that the accounting controls are adequate and that the financial records may be relied upon for preparing the financial statements and maintaining accountability for the Group s assets and liabilities. The Directors have a reasonable expectation that the Group has adequate resources to remain operational for the foreseeable future and continue to adopt the going concern basis in preparing the financial statements. The annual financial statements have been audited by the independent auditing firm, PricewaterhouseCoopers Inc., 19

21 Die finansiële jaarstate is geoudit deur die onafhanklike rekenmeestersfirma, PricewaterhouseCoopers Ing., wat onbeperkte toegang gegee is tot alle finansiële rekords en verwante data, met inbegrip van notules van alle aandeelhouersvergaderings, die Direksie en Direksiekomitees. Die Direkteure meen dat alle verklarings wat gedurende die oudit aan die onafhanklike ouditeure gemaak is, geldig en toepaslik was. Die finansiële state wat op bladsye 6 tot 96 aangebied word, is deur die Raad van Direkteure goedgekeur en namens hulle onderteken deur: who were given unlimited access to all financial records and related data, including minutes of all shareholder meetings, the Board and Board committees. The Directors are of the opinion that all representations made to the independent auditors during the audit were valid and appropriate. The financial statements presented on pages 6 to 96 have been approved by the Board of Directors and signed on their behalf by: WA Agenbach R Pheiffer WA Agenbach R Pheiffer Voorsitter Besturende Direkteur Chairperson Managing Director 27 Junie June 2008 OVERBERG AGRI BEPERK EN SY FILIALE Sertifikaat van die Maatskappysekretaris Certificate of the Company Secretary In my hoedanigheid as Maatskappysekretaris, bevestig ek hiermee dat die Maatskappy alle opgawes soos vereis vir 'n publieke maatskappy ingevolge Artikel 268 G(d) van die Maatskappywet, 1973, by die Registrateur van Maatskappye ingedien het en dat sodanige opgawes waar, korrek en op datum is. A Steyn Maatskappysekretaris Caledon 27 Junie 2008 In my capacity as Company Secretary I hereby confirm that the Company has filed all returns as required for a public company under Section 268 G(d) of the Companies Act, 1973, with the Registrar of Companies and that these returns are true, correct and up to date. A Steyn Company Secretary Caledon 27 June

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23 Verslag van die Onafhanklike Ouditeure aan die aandeelhouers van Overberg Agri Beperk (Registrasienommer: 1998/001018/06) Ons het die finansiële jaarstate van Overberg Agri Beperk en sy filiale geoudit. Hierdie finansiële state bestaan uit die Direkteursverslag, die Balansstaat en Gekonsolideerde Balansstaat soos op 29 Februarie 2008, die Inkomstestaat en Gekonsolideerde Inkomstestaat, die Staat van Veranderings in Ekwiteit en Gekonsolideerde Staat van Veranderings in Ekwiteit, die Kontantvloeistaat en Gekonsolideerde Kontantvloeistaat vir die jaar wat op daardie datum geëindig het, en 'n opsomming van beduidende rekeningkundige beleid en ander verduidelikende aantekeninge, soos uiteengesit op bladsye 6 tot 96. Direkteure se Verantwoordelikheid vir die Finansiële State Die Groep se Direkteure is verantwoordelik vir die opstel en redelike voorstelling van hierdie finansiële state ooreenkomstig 'International Financial Reporting Standards', en op die wyse wat deur die Maatskappywet van Suid-Afrika vereis word. Hierdie verantwoordelikheid sluit in: die ontwerp, implementering en instandhouding van interne beheer relevant tot die opstel en redelike voorstelling van finansiële state wat vry is van wesenlike wanvoorstelling, hetsy weens bedrog of foute; die selektering en toepassing van toepaslike rekeningkundige beleid; en die maak van rekeningkundige ramings wat in die omstandighede redelik is. Ouditeur se Verantwoordelikheid Dit is ons verantwoordelikheid om op grond van ons oudit 'n mening oor hierdie finansiële state uit te spreek. Ons het ons oudit ooreenkomstig 'International Standards on Auditing' uitgevoer. Daardie standaarde vereis dat ons voldoen aan etiese vereistes en die oudit beplan en uitvoer om redelike gerusstelling te verkry of die finansiële state vry is van wesenlike wanvoorstelling. 'n Oudit behels die uitvoer van prosedures om ouditbewyse te verkry oor die bedrae en openbaarmaking in die finansiële state. Die prosedures wat geselekteer word hang af van die ouditeur se oordeel, insluitend die beoordeling van die risiko's van wesenlike wanvoorstelling van die finansiële state, hetsy weens bedrog of foute. Tydens daardie risikobeoordeling oorweeg die ouditeur interne Report of the Independent Auditors to the members of Overberg Agri Limited (Registration number: 1998/001018/06) We have audited the annual financial statements of Overberg Agri Limited and its subsidiaries. These financial statements comprise the Directors report, the Balance Sheet and the Consolidated Balance Sheet as at 29 February 2008, the Income Statement and Consolidated Income Statement, the Statement of Changes in Equity and Consolidated Statement of Changes in Equity, the Cash-flow Statement and Consolidated Cash-flow Statement for the year ending on that date, and a summary of significant accounting policies and other explanatory notes as set out on pages 6 to 96. Directors Responsibility for the Financial Statements The Directors of the Group are responsible for the preparation and reasonable representation of these financial statements in accordance with International Financial Reporting Standards, and in the manner required by the Companies Act of South Africa. This responsibility includes: designing, implementing and maintaining internal control appropriate for the preparation and reasonable representation of financial statements that are free from material misrepresentation, whether due to fraud or errors; selecting and applying applicable accounting policy; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We have performed our audit in accordance with International Standards on Auditing. These standards require us to comply with ethical requirements and to plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement. An audit involves the performance of procedures to obtain audit evidence regarding the amounts and disclosures in the financial statements. The procedures selected depend on the judgement of the auditor, including the assessment of the risk of material misstatement of the financial statements, whether as a result of fraud or errors. During this risk assessment the auditor considers internal control applicable to the preparation and reasonable representation of the financial statements, in order to design audit procedures that are appropriate 22

24 beheer relevant tot die Groep se opstel en redelike voorstelling van die finansiële state, ten einde ouditprosedures te ontwerp wat in die omstandighede toepaslik is, maar nie met die doel om 'n mening uit te spreek oor die effektiwiteit van die Groep se interne beheer nie. 'n Oudit sluit ook 'n evaluering van die toepaslikheid van rekeningkundige beleid wat gebruik is en die redelikheid van rekeningkundige ramings wat deur bestuur gemaak is in, asook 'n evaluering van die algehele aanbieding van die finansiële state. Ons glo dat die ouditbewyse wat ons verkry het, toereikend en toepaslik is om 'n grondslag vir ons ouditmening te bied. Mening Na ons mening bied die Groep-finansiële jaarstate, in alle wesenlike opsigte, n redelike voorstelling van die finansiële stand van die Groep en Maatskappy soos op 29 Februarie 2008, en van die finansiële prestasie en kontantvloei vir die jaar wat op daardie datum geëindig het, ooreenkomstig 'International Financial Reporting Standards' ("IFRS") en op die wyse wat deur die Maatskappywet van Suid-Afrika vereis word. in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Group. An audit also includes an evaluation of the appropriateness of accounting policy used and the reasonableness of accounting estimates made by Management, as well as an evaluation of the overall presentation of the financial statements. We believe that the audit evidence obtained by us is adequate and appropriate in terms of providing a basis for our audit opinion. Opinion In our opinion the Group annual financial statements present fairly, in all material respects, the financial position of the Group and Company as at 29 February 2008, and their financial performance and cash flow for the year ended on that date, in accordance with International Financial Reporting Standards ("IFRS") and in the manner required by the Companies Act of South Africa. PRICEWATERHOUSECOOPERS ING. DIREKTEUR: JM CALITZ GEREGISTREERDE OUDITEUR KAAPSTAD 27 Junie 2008 PRICEWATERHOUSECOOPERS INC. DIRECTOR: JM CALITZ REGISTERED AUDITOR CAPE TOWN 27 June

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26 Direkteursverslag Directors Report Die Direkteure se jaarverslag, wat deel vorm van die geouditeerde finansiële jaarstate van die Groep en die Maatskappy vir die jaar geëindig 29 Februarie 2008, word hieronder aangebied. Aard van besigheid en bedrywigheid Die doelstellings van die onderneming het nie verander gedurende die finansiële jaar nie. Die hoof aktiwiteite van die Groep is die verskaffing en lewering van landbouverwante produkte en dienste, asook die fokus op 'n aantal welvaartskeppende ondernemings waarvan mynbou-aktiwiteite, 'n slagpale, vervaardiging van nat troeteldierkos, industriële hegstukke, en andere, die belangrikste is. Direkteure en Sekretaris Verwys na Maatskappy-inligting soos op bladsy 2. Direkteursbelange Die Uitvoerende Direkteure van die Groep en sy filiale besit 'n aandeelhouding van kleiner as een persent. Direkteure se dienskontrakte en handelsbeperkings Die Uitvoerende Direkteure van die Groep en sy filiale is onderhewig aan skriftelike diensooreenkomste. Die diensooreenkomste reguleer die pligte, vergoeding, toelaes, beperkings, verlof en kennisgewingtydperke van die Uitvoerende Direkteure. Direkteursvergoeding Die Direkteure se vergoeding vir die jaar onder oorsig word in aantekening 43 uiteengesit. Aandelekapitaal Die gemagtigde en uitgereikte aandelekapitaal het onveranderd gebly gedurende die jaar onder oorsig. Die gemagtigde en uitgereikte aandelekapitaal bestaan uit 10,000,000 gewone aandele van 15 sent elk. Op die balansstaatdatum was 8,388,583 uitgereik. Die onuitgereikte aandele word onder die beheer van die Direksie geplaas tot die volgende algemene jaarvergadering. Finansiële resultate, dividende en ander finansiële aangeleenthede. Dividend en kapitaaldistribusie 'n Dividend van 90 sent per aandeel is op 21 Junie 2007 verklaar en op 31 Julie 2007 betaal. The Directors' annual report, which forms part of the audited annual financial statements of the Group and the Company for the year ended 29 February 2008, is presented below. Nature of business and operations The objectives of the enterprise have not changed during the financial year. The principal activities of the Group are the supply and delivery of agriculture-related products and services, as well as the focus on a number of wealthcreating enterprises of which mining activities, an abattoir, the production of wet pet food, industrial fastners and others are the most important. Directors and secretary Refer to Company Information on page 2. Directors' interests The Executive Directors of the Group and its subsidiaries own a shareholding of less than one percent. Directors' employment contracts and trade limitations The Executive Directors of the Group and its subsidiaries are subject to written employment agreements. These employment agreements regulate the duties, remuneration, allowances, limitations, leave and notice periods of the Executive Directors. Directors' remuneration The Directors' remuneration for the year under review has been set out in note 43. Share capital The authorised and issued share capital remained unchanged during the year under review. The authorised and issued share capital consists of 10,000,000 ordinary shares of 15 cents each. On the balance sheet date 8,388,583 had been issued. The unissued shares have been placed under the control of the Board until the next annual general meeting. Financial results, dividends and other financial matters Dividend and capital distribution A dividend of 90 cents per share was declared on 21 June 2007 and paid on 31 July

27 Verhandeling van aandele Overberg Agri Beperk hanteer die oor-die-toonbank verhandeling inhuis. Die verhandelings word gereeld deur onafhanklike interne ouditeure geoudit vir nakoming van die Statuut. Verdere inligting in verband met die Maatskappy se aandele kan op Overberg Agri Beperk se webtuiste verkry word. Finansiële resultate Die Groep toon 'n wins vir die jaar ten bedrae van R48,101,185 (2007: R35,646,097), nadat voorsienings vir belasting van R9,360,588 (2007: R5,578,305) gemaak is. Die resultate van die Groep word in detail in die finansiële state aangebied. Filiaalmaatskappye Inligting rakende die filiaalmaatskappye word in die bylae tot die finansiële state gegee. Na-balansstaatgebeure Die volgende aandelebeleggingsaktiwiteite het nabalansstaat plaasgevind: Pioneer Foods, waarin die Groep 'n belegging het, is nabalansstaatdatum op die JSE genoteer en het 'n regteuitgifte aangekondig. Die Groep het besluit om nie die regte op te neem nie, maar het die regte na-balansstaatdatum verkoop. Die Groep het sy belegging in voorkeuraandele in The South African Breweries Maltings (Pty) Limited verkoop en die transaksie is na-balansstaatdatum suksesvol afgehandel. Geen verdere wesenlike gebeure waarvan sodanige kennis, die gebruikers van die state sou beïnvloed om korrekte evaluasies en besluite te maak, het na die datum van die finansiële state en die datum van goedkeuring daarvan, plaasgevind nie. Sekretaris A Steyn tree as Sekretaris van die Groep op. Die besigheid- en posadres van die Sekretaris is: Donkinstraat 7 CALEDON Ouditeure PricewaterhouseCoopers Ing. sal voortgaan om as ouditeure op te tree ooreenkomstig Artikel 270(2) van die Maatskappywet. Die besluit wat hulle heraanstelling bevestig, sal voorgelê word aan die eerskomende Algemene Jaarvergadering. Share trading Overberg Agri Limited manages the over-the-counter trading internally. Trading is regularly audited by independent internal auditors for compliance with the Articles. Further information with regard to the Company's shares can be obtained on Overberg Agri Limited's website. Financial results The Group is showing a profit for the year amounting to R48,101,185 (2007: R35,646,097), net of provisions for tax of R9,360,588 (2007: R5,578,305). The results of the Group are presented in detail in the financial statements. Subsidiary companies Information regarding the subsidiary companies is provided in the annexure to the financial statements. Post-balance sheet events The following share investment activities took place post-balance sheet: Pioneer Foods, in which the Group has an investment, was listed on the JSE and announced a rights issue. The Group has decided not to take up the rights, but sold it post-balance sheet date. The Group sold its investment in preference shares in The South African Breweries Maltings (Pty) Limited and the transaction was successfully concluded post-balance sheet date. No other material events, knowledge of which would have influenced the users of the statements in making accurate evaluations and decisions, took place after the date of the financial statements and the approval thereof. Secretary A Steyn is acting as Secretary of the Group. The business and postal address of the Secretary is: 7 Donkin Street CALEDON Auditors PricewaterhouseCoopers Inc. will continue to act as auditors in accordance with Section 270(2) of the Companies Act. The resolution confirming their reappointment will be tabled at the next Annual General Meeting. 26

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29 Balansstaat Balance Sheet SOOS OP 29 FEBRUARIE 2008 AS AT 29 FEBRUARY 2008 OVERBERG AGRI BEPERK EN SY FILIALE BATES Nie-bedryfsbates AANTEKENINGE GROEP MAATSKAPPY GROUP COMPANY R 000 R 000 R 000 R 000 NOTES ASSETS Non-current assets Eiendom, aanleg en toerusting 4 176,211) 141,232) Property, plant and equipment Beleggingseiendomme 5 7,283) 7,376) Investment properties Ontasbare bates 6 119,604) 68,498) Intangible assets Belegging in filiale 7 -) -) 188, ,296 7 Investment in subsidiaries Belegging in geassosieerde 8 -) 73) -) - 8 Investment in associate Beskikbaar-vir-verkoop beleggings ,409) 550,418) Available-for-sale investments Biologiese bates 12 1,167) 1,141) Biological assets Uitgestelde belastingbate 13 6,875) 7,610) Deferred tax asset Handels- en ander debiteure 16 40,014) 31,325) Trade and other receivables Bedryfsbates 804,563) 807,672) 188, ,296 Current assets Voorraad ,318) 203,121) Inventory Handels- en ander debiteure ,064) 209,861) Trade and other receivables Bedryfslenings 14 2,423) -) Operating loan Kontant en kontantekwivalente 17 78,571) 8,816) Cash and cash equivalents Huidige belastingbate 18 3,655) 10,323) Current tax asset 689,030) 432,121) Nie-bedryfsbates gehou vir verkoop 11 23,500) -) Non-current assets held for sale 712,530) 432,121) Totale bates 1,517,093) 1,239,793) 188, ,322 Total assets EKWITEIT EN AANSPREEKLIKHEDE EQUITY AND LIABILITIES Kapitaal en reserwes Capital and reserves Gewone aandele 19 1,258) 1,258) 1,258 1, Ordinary shares Tesourie-aandele (1,309) (1,263) - - Treasury shares Aandelepremie ,064) 187,064) 187, , Share premium Ander reserwes 78,446) 78,446) - - Other reserves Billike waarde-aanpassingsreserwe 359,724) 433,907) - - Fair value adjustment reserve Voorverkrygingsherwaardasie-reserwe 11,453) 11,453) - - Pre-acquisition revaluation reserve Behoue inkomste 149,159) 108,313) - - Retained income Minderheidsbelang -) 891) - - Minority interest 785,794) 820,068) 188, ,322 Nie-bedryfslaste Non-current liabilities Na-aftrede mediese voordele 21 11,184) 12,417) Post-retirement medical benefits Langtermynlenings ,776) 23,942) Long-term loans Uitgestelde belastingverpligtinge 13 28,534) 26,847) Deferred tax liabilities 151,493) 63,205) - - Bedryfslaste Current liabilities Korttermynlenings ,896) 283,176) Short-term loans Handels- en ander krediteure ,644) 65,950) Trade and other creditors Na-aftrede mediese voordele 21 1,233) 717) Post-retirement medical benefits Huidige belastingaanspreeklikheid 18 1,293) 554) Current tax liability Voorsiening vir aanspreeklikhede 24 8,740) 6,122) Provision for liabilities 579,806) 356,519) - - Totale ekwiteit en aanspreeklikhede 1,517,093) 1,239,793) 188, ,322 Total equity and liabilities 28

30 Inkomstestaat Income Statement OVERBERG AGRI BEPERK EN SY FILIALE AANTEKENINGE GROEP MAATSKAPPY GROUP COMPANY R 000 R 000 R 000 R 000 NOTES Inkomste 25 1,120,620) 668,917) Income Koste van verkope (949,132) (551,673) - - Cost of Sales Bruto wins 171,488) 117,244) - - Gross profit Rente inkomste 26 38,295) 22,241) Interest income Ander inkomste 27 22,217) 20,822) 7,550 6, Other income Verkoops- en bemarkingskoste (13,415) (10,778) - - Sales and marketing costs Administrasiekoste (52,332) (37,692) - - Administration costs Ander bedryfsuitgawes (80,651) (62,410) - - Other operating expenditure Items van 'n kapitale aard 29 4,711) 13,021) Items of a capital nature Bedryfswins 30 90,313) 62,448) 7,550 6, Operating profit Finansieringsinkomste ) 1,394) Finance income Finansieringskoste 31 (33,816) (22,685) Finance costs Inkomste vanaf geassosieerde -) 67) - - Income from associate Wins voor belasting 57,462) 41,224) 7,550 6,291 Profit before tax Belasting 32 (9,361) (5,578) Tax Wins vir die jaar 48,101) 35,646) 7,550 6,291 Profit for the year Wins vir die jaar toeskryfbaar aan: Profit for the year attributable to: Ekwiteitsaandeelhouers van Equity shareholders of die Groep 48,101) 35,485) 7,550 6,291 the Group Minderheidsbelang -) 161) - - Minority interest 48,101) 35,646) 7,550 6,291 29

31 Kontantvloeistaat Cash Flow Statement OVERBERG AGRI BEPERK EN SY FILIALE AANTEKENINGE NETTO KONTANTVLOEI UIT BEDRYFSAKTIWITEITE GROEP MAATSKAPPY GROUP COMPANY R 000 R 000 R 000 R 000 NOTES NET CASH FLOW FROM OPERATING ACTIVITIES Wins voor belasting 57,462) 41,224) 7,550) 6,291) Profit before tax Nie-kontantvloei en ander items 33 (4,466) (13,818) (7,550) (6,291) 33 Non-cash flow and other items Bedryfskapitaal-veranderinge 34 (97,766) (171,427) -) -) 34 Operating capital changes Kontant aangewend in bedrywighede (44,770) (144,022) -) -) Cash utilised in operations Rente betaal (33,816) (22,684) -) -) Interest paid Inkomstebelasting betaal / (ontvang) 36 (2,444) 7,229) -) -) 36 Income tax paid / (received) NETTO KONTANTVLOEI UIT NET CASH FLOW FROM BEDRYFSAKTIWITEITE (81,031) (159,477) -) -) OPERATING ACTIVITIES KONTANTVLOEI UIT CASH FLOW FROM BELEGGINGSAKTIWITEITE (106,029) 18,505) 7,550) 6,291) INVESTMENT ACTIVITIES Aankoop van eiendom, aanleg en Acquisition of property, toerusting 4 (26,212) (40,045) -) -) 4 plant and equipment Aankoop van ontasbare bates 6 (735) (303) -) -) 6 Acquisition of intangible assets Opbrengs met verkoop van Return on sale of property, eiendom, aanleg en toerusting 3,958) 18,538) -) -) plant and equipment Opbrengs met verkoop van beleggings 55) 73) -) -) Return on sale of investments Toename in beleggings (33,384) -) -) -) Increase in investment Aankoop van beskikbaar-vir- Acquisition of available-for-sale verkoop beleggings (355) -) -) -) investment Lening terugbetaal deur filiaal -) 160) -) -) Loan repaid by subsidiary Rente ontvang 39,090) 23,634) -) -) Interest received Dividende ontvang 18,010) 16,448) 7,550) 6,291) Dividends received Kontantuitvloei met besigheid- Cash outflow with business samevoeging 42 ( ) -) -) -) 42 combination KONTANTVLOEI UIT CASH FLOW FROM FINANSIERINGSAKTIWITEITE 259,393) 147,824) (7,550) (6,291) FINANCING ACTIVITIES Lenings aangegaan 266,482) 153,670) -) -) Borrowings incurred Tesourie-aandele uitgereik deur filiaal (46) (155) -) -) Treasury shares issued by subsidiary Dividende betaal 35 (7,043) (5,691) (7,550) (6,291) 35 Dividends paid Netto toename in kontant, kontant- Net increase in cash, ekwivalente en oortrokke cash equivalents and bankrekenings 72,333) 6,852) -) -) overdrafts Netto kontant, kontant-ekwivalente Net cash, cash equivalents en oortrokke bankrekenings and overdrafts at the aan die begin van die jaar 5,707) (1,144) -) -) beginning of the year Netto kontant, kontant-ekwivalente Net cash, cash equivalents en oortrokke bankrekenings aan and overdrafts at die einde van die jaar 37 78,040) 5,707) -) -) 37 the end of the year 30

32 Staat van Ekwiteitsveranderinge Statements of Changes in Equity OVERBERG AGRI BEPERK EN SY FILIALE Aandelekapitaal AANTEKENINGE GROEP MAATSKAPPY GROUP COMPANY R 000 R 000 R 000 R 000 NOTES Share capital Begin van die tydperk 1,258) 1,258 1,258) 1,258 Beginning of the period Aandele uitgereik -) - -) - Shares issued Einde van die tydperk 1,258) 1,258 1,258) 1,258 End of the period Tesourie-aandele Treasury shares Begin van die tydperk (1,263) (1,108) -) - Beginning of the period Toename gedurende die tydperk (46) (154) -) - Increase during the period Einde van die tydperk (1,309) (1,263) -) - End of the period Aandelepremie Share premium Begin van die tydperk 187,064) 187, ,064) 187,064 Beginning of the period Premie op aandele uitgereik Premium on shares issued gedurende die jaar -) - -) - during the year Einde van die tydperk 187,064) 187, ,064) 187,064 End of the period Behoue Inkomste Retained income Begin van die tydperk 108,313) 78,525 -) - Beginning of the period Minderheidsbelang bekom (212) (6) -) - Minority interest acquired Netto wins vir die tydperk 48,101) 35,485 7,550) 6,291 Net profit for the period Dividende betaal 35 (7,043) (5,691) (7,550) (6,291) 35 Dividends paid Einde van die tydperk 149,159) 108,313 -) - End of the period Ander reserwes Other reserves Reserwes - omskakeling van Reserves - conversion of koöperasie na maatskappy: co-operative to company: Begin van die jaar 78,446) 78,446 -) - Beginning of the year Einde van die tydperk 78,446) 78,446 -) - End of the period Billike waarde aanpassingsreserwe Fair value adjustment reserve Beskikbaar-vir-verkoop beleggings Available-for-sale investments Begin van die jaar 433,907) 444,495 -) - Beginning of year Billike waardeaanpassings Fair value adjustments vir die jaar (74,183) (10,589) -) - for the year Einde van die tydperk 359,724) 433,907 -) - End of the period Voorverkrygingsherwaardasie reserwe Pre-acquisition revaluation reserve Begin van die jaar 11,453) 11,453 -) - Beginning of the year Besigheidsamevoeging -) - -) - Business merger Einde van die tydperk 11,453) 11,453 -) - End of the period Minderheidsbelang Minority interest Begin van die jaar 891) 749 -) - Beginning of the year Aankoop van minderheidsbelang (891) (18) -) - Acquisition of minority interest Wins vir die jaar -) 161 -) - Profit for the year Einde van die tydperk -) 891 -) - End of the period 31

33 32 productive

34 Bylaag A Annexure A BELEGGINGS IN FILIALE VAN OVERBERG AGRI BEPERK Aandele teen kosprys # # Aandele Shares Aandele Shares R 000 R 000 INVESTMENT IN SUBSIDIARIES OF OVERBERG AGRI LIMITED Shares at cost price Overberg Agri Bedrywe (Edms) Bpk (100%-belang) 79,238,110 79,238, Aard van besigheid: Verskaffing en lewering van landbou-verwante produkte en dienste Bydrae tot Groep se wins: R33,729,110 (2007: R28,573,388) Overberg Agri Beleggings (Edms) Bpk (100%-belang) 175, , , ,504 Aard van besigheid: Beleggingsmaatskappy Bydrae tot Groep se wins: R4,673,741 (2007: R7,937,327) BELEGGINGS IN FILIALE VAN OVERBERG AGRI BELEGGINGS (EDMS) BEPERK Avello Kaap (Africa's Best 323) (Edms) Bpk (100%-belang) 2,000, ,000 - Aard van besigheid: Verkoop van landbou chemikalieë Bydrae tot Groep se wins: -R24,961 (2007: -R200,252) Bontebok Motorgroep (Edms) Bpk (100%-belang) 400, , Aard van besigheid: Bedryf van rybaan, verhuur van vaste eiendom Bydrae tot Groep se wins: -R144,446 (2007: -R10,524) Boltfast (Edms) Bpk (100%-belang) Aard van besigheid: Koop en verkoop van industriële hegstukke Bydrae tot Groep se wins: R1,558,707 (2007: R nul) Bontebok Lime Works (Edms) Bpk (100%-belang) 40,000 40,000 3,437 3,437 Aard van besigheid: Kalkmyn wat hidroksied, voerkalk en landboukalk vervaardig Bydrae tot Groep se wins: R2,303,417 (2007: R7,875,224) Bredasdorp Slagpale (Edms) Bpk (100%-belang [2007: 89% belang]) 638, ,176 6,146 5,096 Aard van besigheid: Bedryf van slagpale Bydrae tot Groep se wins: R1,314,973 (2007: R1,299,173) Overberg Agri Bedrywe (Pty) Ltd (100% interest) Nature of business: Supply and delivery of agriculture-related products and services Contribution to Group profit: R33,729,110 (2007: R28,573,388) Overberg Agri Beleggings (Pty) Ltd (100% interest) Nature of business: Investment company Contribution to Group profit: R4,673,741 (2007: R7,937,327) INVESTMENTS IN SUBSIDIARIES OF OVERBERG AGRI BELEGGINGS (PTY) LTD Avello Kaap (Africa's Best 323`) (Pty) Ltd (100% interest) Nature of business: Selling of agrichemicals Contribution to Group profit: -R24,961 (2007: -R200,252) Bontebok Motor Group (Pty) Ltd (100% interest) Nature of business: Operates forecourt, rental of fixed property Contribution to Group profit: -R144,446 (2007: -R10,524) Boltfast (Pty) Ltd (100% interest) Nature of business: Buying and selling of industrial fasteners Contribution to Group profit: R1,558,707 (2007: R zero) Bontebok Lime Works (Pty) Ltd (100% interest) Nature of business: Lime mine that produces hydrated lime, feed lime and agricultural lime Contribution to Group profit: R2,303,417 (2007: R7,875,224) Bredasdorp Abattoir (Pty) Ltd (100% interest [2007: 89% interest]) Nature of business: Operates abattoir Contribution to Group profit: R1,314,973 (2007: R1,299,173) 94

35 Bylaag A (vervolg) Annexure A (continued) # # Aandele Shares Aandele Shares R 000 R 000 CAM Motors (Edms) Bpk (100%-belang) Aard van besigheid: Bedryf van motorhandelaarskappe, rybaan en herstelwerke Bydrae tot Groep se wins: -R1,387,812 (2007: R559,522) Kaapland Landboudienste (Edms) Bpk (100%-belang) - 959,032-5,597 Aard van besigheid: Houermaatskappy vir maatskappy wat kalkmyn bedryf Bydrae tot Groep se wins: R nul (2007: -R46) Ontbondeling 1 (Edms) Bpk (100%-belang) Aard van besigheid: Bedryf van rybaan Bydrae tot Groep se wins: -R11,603 (2007: R418,811) Promeal (Edms) Bpk (100%-belang) ,441 56,441 Aard van besigheid: Vervaardig nat troeteldierkos vir kleinhandel Bydrae tot Groep se wins: R5,169,090 (2007: R5,144,755) Promeal Properties (Edms) Bpk (100%-belang) ,559 Aard van besigheid: Verhuurder van vaste eiendom Bydrae tot Groep se wins: R311,364 (2007: -R16,994) CAM Motors (Pty) Ltd (100% interest) Nature of business: Operates motor dealerships, forecourt and workshops Contribution to Group profit: -R1,387,812 (2007: R559,522) Kaapland Landboudienste (Pty) Ltd (100% interest) Nature of business: Holding company for company operating lime mine Contribution to Group profit: R zero (2007: -R 46) Ontbondeling 1 (Pty) Ltd (100% interest) Nature of business: Operates forecourt Contribution to Group profit: -R11,603 (2007: R418,811) Promeal (Pty) Ltd (100% interest) Nature of business: Manufactures wet pet food for retail market Contribution to Group profit: R5,169,090 (2007: R5,144,755) Promeal Properties (Pty) Ltd (100% interest) Nature of business: Lessor of fixed property Contribution to Group profit: R311,364 (2007: -R16,994) Procuro (Edms) Bpk (100%-belang) Procuro (Pty) Ltd (100% interest) Aard van besigheid: Makelaar van versekeringsdienste Bydrae tot Groep se wins: R347,757 Nature of business: Broker of insurance services Contribution to Group profit: R347,757 (2007:-R157,062) (2007:-R157,062) Die totaal van die filiale se wins/verlies vir die jaar verskil van die Groep se wins as gevolg van intergroeptransaksies wat op konsolidasie geëlimineer is en IFRSaanpassings op die Groep se winste. The total profit/loss for the year of the subsidiaries differs from the Group's profit due to intergroup transactions eliminated upon consolidation and IFRS adjustments to the Group profits. The abovementioned subsidiaries were all incorporated in South Africa. The subsidiaries were consolidated in Bogenoemde filiale is almal in Suid-Afrika geïnkorporeer. accordance with IAS 27, Consolidated and Separate Die filiale is gekonsolideer in ooreenstemming met Financial Statements. IAS 27, Gekonsolideerde en Enkel-finansiële State. 95

36 Bylaag B Annexure B BELEGGING IN GEASSOSIEERDE Getal Verhouding aandele van gehou besit Number Ratio of of shares ownerheld ship Overberg Eiendomme (Edms) Bpk 50 50% Finansiële inligting van Overberg Eiendomme (Edms) Bpk waarin die Groep 'n effektiewe belang van 0% (2007: 50%) het, word hieronder uiteengesit. Eiendomme Eiendomme Overberg Eiendomme (Edms) Bpk R 000 R 000 Balansstaat Bates Nie-bedryfsbates (hoofsaaklik eiendom, aanleg en toerusting) -) - Netto bedryfsbates -) 366) INVESTMENT IN ASSOCIATE Overberg Eiendomme (Pty) Ltd Financial information for Overberg Eiendomme (Pty) Ltd, in which the Group has an effective interest of 0% (2007: 50%), has been set out below. Overberg Eiendomme (Pty) Ltd Balance Sheet Assets Non-current assets (mainly property, plant and equipment) Net current assets -) 366) Ekwiteit en Aanspreeklikhede Kapitaal en reserwes -) - Nie-bedryfslaste -) - Bedryfslaste -) 220) Equity and liabilities Capital and reserves Non-current liabilities Current liabilities -) 220) Inkomstestaat Wins voor belasting -) 189) Belasting -) (55) Netto wins -) 134) Dividende -) -) Behoue inkomste -) 134) Income Statement Profit before taxation Taxation Net profit Dividends Retained earnings 96

37 Aantekeninge tot die finansiële jaarstate Notes to the annual financial statements 1 REKENINGKUNDIGE BELEID Die belangrikste rekeningkundige beleide wat toegepas word in die opstelling van hierdie finansiële jaarstate word hieronder uiteengesit en is konsekwent toegepas op alle periodes wat aangebied word, behalwe vir die verandering in rekeningkundige beleid soos uiteengesit in aantekening BASIS VAN OPSTELLING Die finansiële state van OVERBERG AGRI BEPERK is opgestel in ooreenstemming met Internasionale Finansiële Verslagdoeningstandaarde (IFRS). Die finansiële jaarstate is opgestel volgens die historiese koste-beginsel. Beskikbaar-vir-verkoop finansiële bates word teen billike waarde weergegee in die ekwiteit en finansiële bates en finansiële laste word teen billike waarde waardeer en weergegee in die Inkomstestaat. Die opstel van die finansiële jaarstate in ooreenstemming met IFRS vereis die gebruik van sekere kritiese rekeningkundige ramings en aannames. Dit vereis ook dat bestuur oordeel moet gebruik in die toepassing van die Groep se rekeningkundige beleid. Die areas wat 'n hoër vlak van oordeel vereis of meer kompleks is, of areas waar aannames en ramings 'n wesenlike invloed op die finansiële jaarstate het, word weergegee in aantekening 2. Standaarde, interpretasies en wysigings aan gepubliseerde standaarde effektief in Die volgende standaarde, interpretasies en wysigings tot standaarde is verpligtend vir en van toepassing op die Groep se rekeningkundige periodes op of na 1 Maart IFRS 7, Finansiële instrumente: Openbaarmaking en gevolglike wysigings tot IFRS 4 Versekeringskontrakte: Hersiene leiding ten opsgte van implemetering (effektief vanaf 1 Januarie 2007) IFRS 7 voeg addisionele openbaarmaking in om die inligting aangaande finansiële instrumente te verbeter. Dit verlang die openbaarmaking van beide kwalitatiewe en kwantitatiewe inligting aangaande die risiko's waaraan finansiële instrumente entiteite blootstel. IFRS 7 vervang 1 ACCOUNTING POLICY The principal accounting policies applied in preparing these annual financial statements have been set out below and were applied consistently to all periods presented, except for the change in accounting policy as set out in note BASIS OF PRESENTATION The financial statements of OVERBERG AGRI LIMITED are prepared in accordance with International Financial Reporting Standards (IFRS). The annual financial statements were prepared based on the historical cost principle. Available-for-sale financial assets are represented at fair value in the equity and financial assets and financial liabilities have been valued and are represented at fair value in the Income Statement. The preparation of the annual financial statements in accordance with IFRS requires that certain critical accounting estimates and assumptions be used. It also requires that management use their discretion in applying the accounting policy of the Group. Those areas requiring a higher level of judgement or that are more complex, or areas where assumptions and estimates have a material effect on the annual financial statements, are represented in note 2. Standards, interpretations and amendments to published standards effective in The following standards, interpretations and amendments to standards are compulsory for and applicable to the accounting periods of the Group on or after 1 March IFRS 7, Financial instruments: Disclosure, and resultant amendments to IFRS 4, Insurance contracts: Revised guidance in respect of implementation (effective from 1 January 2007) IFRS 7 adds additional disclosure to improve the information regarding financial instruments. It requires the disclosure of both qualitative and quantitive information regarding the extent to which the entity is exposed to risk arising from financial instruments. IFRS 7 replaces IAS 32, Financial Instruments: Disclosure and Presentation. The application 33

38 1.1 BASIS VAN OPSTELLING (vervolg) IAS 32, Finansiële Instrumente: Openbaarmaking en Aanbieding. Die toepassing van hierdie standpunt sal slegs 'n invloed hê op die formaat en omvang van die openbaarmaking aangebied. Die Groep het hierdie wysiging toepas vir alle periodes wat begin op 1 Maart Wat IFRS 4 Versekeringskontrakte betref, het Bestuur die impak op die Groep oorweeg en is van mening dat dit nie tans van toepassing is op die Groep nie. IAS 1 (gewysig), Aanbieding van Finansiële State - Kapitaalopenbaarmaking (effektief vanaf 1 Januarie 2007) Die wysiging aan IAS 1 stel openbaarmaking bekend oor die vlak van 'n entiteit se kapitaal en hoe die entiteit die kapitaal bestuur. Die Groep het hierdie wysiging toepas vir alle periodes wat begin op 1 Maart IFRIC 8 - Omvang van IFRS 2 (effektief vanaf 1 Mei 2006) IFRIC 8 gee uitklaring oor waar IFRS 2 van toepassing is op ooreenkomste waar 'n entiteit aandeel-gebaseerde betalings maak vir kennelik nul of onvoldoende vergoeding. Die interpretasie verduidelik dat waar identifiseerbare vergoeding gegee, blyk minder as die billike waarde van die ekwiteitsinstrument toegestaan of verpligting opgeloop te wees, sodanige ooreenkoms daarop dui dat addisionele vergoeding ontvang is, of ontvang sal word. Die Groep sal hierdie wysiging toepas vir alle periodes wat begin op 1 Maart Die volgende standaarde, interpretasies en wysigings tot standaarde is verpligtend vir, maar nie van toepassing nie op die Groep se rekeningkundige periodes op of na 1 Maart 2007: RE 503, Evaluering van Swart Bemagtigingsbeleid (effektief vanaf 1 Mei 2006) As ekwiteitsinstrumente teen 'n diskonto aan 'n Swart Ekonomiese Bemagtigings-(SEB) vennoot toegewys word, moet dit as 'n uitgawe erken word. SEB-voordele wat verkry word as deel van 'n besigheidsamevoeging sal opgeneem word in klandisiewaarde en nie as 'n aparte ontasbare bate erken word nie. Waar die SEB-transaksie diensvoorwaardes insluit, sal die billike waarde van die ekwiteitsinstrumente gemeet word by toekenningsdatum en die uitgawe sal erken word oor die periode van die diensvoorwaardes. Waar die SEB-transaksie geen diensvoorwaardes insluit nie, sal die billike waarde van die 1.1 BASIS OF PRESENTATION (continued) of this statement will only affect the format and extent of the disclosure presented. The Group will apply this amendment for all periods commencing on 1 March With regards to IFRS 4, Insurance contracts, management have considered the impact on the Group and are of the opinion that it does not currently apply to the Group. IAS 1 (amended), Presentation of Financial Statements - Capital disclosure (effective from 1 January 2007) The amendment of IAS 1 introduces disclosure about the level of an entity's capital and how it manages its capital. The Group applied this amendment for all periods beginning on 1 March IFRIC 8 - Extent of IFRS 2 (effective from 1 May 2006) IFRIC 8 clarifies that IFRS 2 is applicable to agreements where an entity makes share-based payments for an apparently zero or inadequate consideration. The interpretation explains that, if the identifiable consideration given appears to be less than the fair value of the equity instrument granted or liability incurred, such agreement indicates that another consideration was or will be received. The Group will apply this amendment for all periods beginning on 1 March The following standards, interpretations and amendments to standards are compulsory for, but not applicable to the Group's accounting periods on or after 1 March 2007: AS 503, Evaluation of Black Empowerment policy (effective from 1 May 2006) If equity instruments are allocated to a Black Economic Empowerment (BEE) partner at a discount, it has to be recognised as an expense. BEE benefits obtained as part of a business merger have to be taken up in goodwill and may not be recognised as a separate intangible asset. Where the BEE transaction includes service conditions, the fair value of the equity instruments will be measured upon date of allocation and the expense has to be recognised over the period of the service conditions. Where the BEE transaction includes no service conditions, the fair value of the equity instruments will be measured upon date of allocation and the expense is immediately recognised on the date of allocation. Management have considered the impact on the Group and are of the opinion that it is not currently applicable to the Group, but that it may become applicable should the Group become a 34

39 1.1 BASIS VAN OPSTELLING (vervolg) ekwiteitsinstrumente gemeet word by toekenningsdatum en die uitgawe sal onmiddellik erken word op die toekenningsdatum. Bestuur het die impak op die Groep oorweeg en is van mening dat dit nie tans van toepassing is op die Groep nie, maar dat dit wel van toepassing mag wees indien die Groep 'n party sou word tot 'n SEBtransaksie. IFRIC 9 - Herevaluering van afgeleide finansiële instrumente (effektief vanaf 1 Junie 2006) IFRIC Interpretasie 10 - Tussentydse Finansiële Rapportering en Waardedaling (effektief vanaf 1 November 2006) IFRIC 10 bepaal dat 'n maatskappy nie waardedalingsverliese mag terugskryf ten opsigte van klandisiewaarde, 'n belegging in 'n ekwiteitsinstrument of finansiële bate wat getoon word teen historiese koste, wat in vorige tussentydse finansiële periodes erken is nie. Bestuur het die impak op die Groep oorweeg en is van mening dat dit nie van toepassing op die Groep is nie aangesien die Groep spesiale vergunning verkry het om nie tussentydse finansiële verslae uit te reik nie. IFRIC Interpretasie 11 - IFRS 2 - Groep- en tesourieaandeletransaksies (effektief vanaf 1 Maart 2007) Standaarde, interpretasies en wysigings aan gepubliseerde standaarde nog nie effektief nie, maar reeds toegepas in Die volgende standaarde, interpretasies en wysigings tot standaarde is verpligtend vir en van toepassing op die Groep se rekeningkundige periodes op of na 1 Maart 2009, maar wat die Groep vroeër geïmplementeer het, is die volgende: IAS 23 (hersien), Leenkoste (effektief vanaf 1 Januarie 2009) - reeds toegepas Die vernaamste hersiening van die vorige IAS 23 is die verwydering van die opsie om leenkoste onmiddellik af te skryf as 'n uitgawe, indien die leenkoste aan 'n spesifieke bate gekoppel kan word wat 'n wesenlike periode van tyd neem om in 'n toestand, beskikbaar vir gebruik, te wees. Die Groep het besluit om hierdie standpunt reeds vir die huidige jaar toe te pas. Die oorgangsbepaling van IAS 23 bepaal dat kapitalisering slegs gedoen mag word vanaf die datum wat die standpunt in werking getree het of dan die datum waarop die Groep besluit het om die 1.1 BASIS OF PRESENTATION (continued) party to a BEE transaction. IIFRIC 9 - Re-evaluation of derivative financial instruments (effective from 1 June 2006) IIFRIC Interpretation 10 - Interim Financial Reporting and Impairment (effective from 1 November 2006) IFRIC 10 prohibits the reversal of the impairent losses recognised in an interim period on goodwill and investments in equity instruments and financial assets carried at cost, at a subsequent balance sheet date. Management have considered the impact on the Group and are of the opinion that it is not applicable to the Group as the Group obtained special permission not to issue interim financial reports. IIFRIC Interpretation 11 - IFRS 2 - Group and treasury share transactions (effective from 1 March 2007) Standards, interpretations and amendments to published standards not operative yet, but already adopted in The following standards, interpretations and amendments to standards are compulsory for and applicable to the accounting periods of the Group on or after 1 March 2009, but which the Group has adopted early before are the following: IIAS 23 (revised), Loan costs (effective from 1 January 2009) - already applied The most important revision of the previous IAS 23 is the removal of the option of immediately recognising as an expense borrowing costs that relate to assets that take a substantial period of time to get ready for use or sale. The Group has already decided to implement this standard for the current year. The transitional provision of IAS 23 provides that capitalisation may only be done from the date on which the standard became effective or the date on which the Group decided on the early adoption of the standard. Therefore no retrospective adjustment to the financial statements is necessary. Standards, interpretations and amendments to published standards not yet effective. The following standards, interpretations and amendments to standards are compulsory for and applicable to the Company's future accounting periods: 35

40 1.1 BASIS VAN OPSTELLING (vervolg) standpunt vroeg te aanvaar. Geen terugwerkende aanpassing moet gedoen word aan die finansiële resultate nie. Standaarde, interpretasies en wysigings aan gepubliseerde standaarde wat nog nie effektief is nie. Die volgende standaarde, interpretasies en wysigings tot standaarde is verpligtend vir en van toepassing op die Maatskappy se toekomstige rekeningkundige periodes: IAS 1 - Aanbieding van Finansiële State (effektief vanaf 1 Januarie 2009) Die doelwit van die standpunt is om die basis van voorbereiding vir finansiële state voor te skryf ten einde te verseker dat dit vergelykbaar is met die finansiële state van vorige periodes asook ander entiteite. IAS 27 - Gekonsolideerde en afsonderlike Finansiële State (effektief vanaf 1 Julie 2009) Die hoofdoelwit van die standpunt is om die alternatiewe vir die verantwoording van filiale in die gekonsolideerde finansiële state en vir die verantwoording van beleggings in die enkelstate van die houer, te verminder. IFRS 2, Wysiging van IFRS 2 Aandeel-gebaseerde betaling: Vestigingsomstandighede en kansellasies (effektief vanaf 1 Januarie 2009) IFRS 2, gewysig, gee uitsluitsel daaroor dat slegs diensvoorwaardes en prestasievoorwaardes vestigingsomstandighede daarstel. Dit spesifiseer ook dat, waar daar 'n kansellasie plaasvind óf deur die entiteit óf deur ander partye die rekeningkundige hantering van sodanige kansellasie dieselfde moet wees. Bestuur het die impak op die Groep oorweeg en is van mening dat hierdie standpunt sal slegs 'n invloed kan hê op die langtermyn aansporingskema van die Uitvoerende Direkteur. Die Groep sal hierdie wysiging toepas vir alle periodes wat begin op of na 1 Maart Die volgende standaarde, interpretasies en wysigings tot standaarde behoort nie op die Groep se toekomstige rekeningkundige periodes van toepassing te wees nie: IAS 32 en IAS 1 (wysiging), Wysiging tot IAS 32: Finansiële Instrumente en IAS 1: Openbaarmaking van Finansiële State: Koopopsie-finansiële instrumente en aanspreeklikhede voortspruitend uit likwidasie (effektief vanaf 1 Januarie 2009) 1.1 BASIS OF PRESENTATION (continued) IAS 1 - Presentation of Financial Statements (effective from 1 January 2009) The objective of the standard is to prescribe the basis of preparation of the financial statements in order to ensure that it is comparable to the financial statements of previous periods as well as those of other entities. IAS 27 - Consolidated and separate Financial Statements (effective from 1 July 2009) The main objective of the standard is to decrease the alternatives for accounting for subsidiaries in the consolidated financial statements and for investments in the separate financial statements of the holding company. IFRS 2, Amendment of IFRS 2, Share-based payment: Vesting conditions and cancellations (effective from 1 January 2009) IFRS 2, as amended, pronounces on the fact that only service conditions and performance conditions establish vesting conditions. It also specifies that, where a cancellation takes place either by the entity or by other parties, the accounting procedure for such cancellation should be the same. Management have considered the impact on the Group and are of the opinion that this standard can only have an influence on the long-term incentive scheme of the Executive Director. The Group will apply this amendment for all periods beginning on or after 1 March The following standards, interpretations and amendments to standards should not apply to the future accounting periods of the Group: IAS 32 and IAS 1 (amendment), Amendment to IAS 32: Financial Instruments and IAS 1: Disclosure of Financial Statements: Puttable financial instruments and obligations arising from liquidation (effective from 1 January 2009) IFRIC 12 - Service concession agreements (effective from 1 January 2008) IFRIC 13 - Client loyalty programmes (effective from 1 January 2008) IFRIC 14 - IAS 19: Limit on defined benefit asset, minimum funding requirements and their interaction (effective from 1 January 2009) IFRIC 12 - Dienskonsessies-ooreenkomste (effektief vanaf 1 Januarie 2008) 36

41 1.1 BASIS VAN OPSTELLING (vervolg) IFRIC 13 - Kliënte-lojaliteitsprogramme (effektief vanaf 1 Januarie 2008) IFRIC 14 - IAS 19: Limiet op omskrewe voordeelbate, minimum befondsingsvereistes en hulle interaksie (effektief vanaf 1 Januarie 2009) IFRS 3 - Besigheidskombinasies (effektief vanaf 1 Julie 2009) IFRS 8 - Bedryfsegmente (effektief vanaf 1 Januarie 2009) 1.2 KONSOLIDASIE VAN FILIALE Filiale is entiteite waar die Groep die reg het om beheer uit te oefen oor die finansiële en operasionele beleide, soos normaalweg by 'n aandeelhouding van meer as die helfte van die stemregte in die entiteite. Die bestaan en effek van potensiële stemregte wat dadelik uitoefenbaar of omskepbaar is, word in aanmerking geneem wanneer die Groep bepaal of 'n entiteit beheer word al dan nie. Filiale word ten volle gekonsolideer vanaf die datum waarop beheer oorgedra is aan die Groep. Die entiteite word gedekonsolideer vanaf die datum wanneer beheer nie meer bestaan nie. Die aankoopsmetode word gebruik by die teboekstelling van die verkryging van filiale binne die Groep. Die aankoopswaarde van 'n verkryging word gemeet as die billike waarde van die bates opgegee, ekwiteitsinstrumente uitgereik en laste aangegaan of oorgeneem op die datum van oordrag, plus enige koste wat direk toeskryfbaar is aan die verkryging. Identifiseerbare bates verkry en laste en voorwaardelike aanspreeklikhede aanvaar in besigheidsamevoegings word aanvanklik gemeet teen billike waarde op die datum van verkryging, ongeag die omvang van enige minderheidsbelang. Die surplus van koste van verkryging bo die billike waarde van die Groep se aandeel in die identifiseerbare netto bates, word erken as klandisiewaarde. Indien die koste van verkryging minder is as die billike waarde van die Groep se aandeel in die netto bates van die filiaal wat verkry word, word die verskil onmiddellik in die inkomstestaat erken. Intergroep-transaksies, saldo's en ongerealiseerde surplusse op transaksies tussen groepsmaatskappye, word geëlimineer. Die rekeningkundige beleid van die filiale is, waar nodig, verander om ooreen te stem met die beleid soos aanvaar deur die Groep. 1.1 BASIS OF PRESENTATION (continued) IFRS 3 - Business combinations (effective from 1 July 2009) IFRS 8 - Operating segments (effective from 1 January 2009) 1.2 CONSOLIDATION OF SUBSIDIARIES Subsidiaries are entities where the Group has the right to exercise control over the financial and operational policies, as normally with shareholding of more than half of the voting rights in the entities. The existence and effect of potential voting rights that are immediately exercisable or convertible are taken into account when the Group determines whether an entity is controlled or not. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. The entities are deconsolidated from the date on which control ceases to exist. The buy-in method is used when recording the acquisition of subsidiaries within the Group. The buy-in value of an acquisition is measured as the fair value of the assets given up, equity instruments issued and liabilities incurred or taken over on the date of transfer, plus any costs directly attributable to the acquisition. Identifiable assets obtained and liabilities and conditional liabilities accepted in business mergers are initially measured at fair value on the date of acquisition, irrespective of the extent of any minority interest. The surplus of cost of acquisition over the fair value of the Group's share in the identifiable net assets is recognised as goodwill. If the cost of acquisition is lower than the fair value of the Group's share in the net assets of the subsidiary acquired, the difference is recognised immediately in the Income Statement. Intergroup transactions, balances and unrealised surpluses on transactions between group companies are eliminated. The accounting policy of the subsidiaries was changed where necessary to agree with the policy as accepted by the Group. 37

42 1.3 EIENDOM, AANLEG EN TOERUSTING Grond en geboue bestaan hoofsaaklik uit graansilo's, handelswinkels, pakhuise, fabrieke, n slagpale, n oopgroefmyn en kantore. Alle eiendom, aanleg en toerusting word getoon teen kosprys (insluitend leenkoste - verwys aantekening 1.16 en 2.11) min latere waardevermindering en waardedaling, behalwe vir grond, wat getoon word teen kosprys min waardedaling. Die kosprys sluit in koste wat direk toeskryfbaar is aan die verkryging van die bates. Addisionele koste word of ingesluit by die bestaande bate se drabedrag of erken as 'n individuele bate, soos van toepassing, slegs indien dit waarskynlik is dat toekomstige ekonomiese voordele wat verband hou met die item na die Groep gaan vloei en die kosprys van die item betroubaar gemeet kan word. Alle ander herstelwerken onderhoudskoste word in die Inkomstestaat erken in die finansiële periode waarin dit aangegaan is. Waardevermindering word bereken volgens die reguitlynbasis om die kosprys van elke bate na die bate se reswaarde te verminder oor die bate se verwagte nuttige lewensduur, soos volg: Grond Geen Geboue jaar Silo's 50 jaar Staalsilo's 25 jaar Silomasjinerie en toerusting 15 jaar Masjinerie en toerusting 6-25 jaar Kantoormeubels en toerusting 6-15 jaar Rekenaars 4-5 jaar Motorvoertuie - bakkies, motors en ander voertuie 5-15 jaar Motorvoertuie - vragmotors en trekkers 8-15 jaar Implemente jaar Die bates se reswaarde en nuttige lewensduur word op elke balansstaatdatum hersien en aangepas indien nodig. 'n Bate se drabedrag word onmiddellik afgeskryf na sy realiseerbare bedrag indien die bate se drabedrag groter is as die verwagte realiseerbare waarde. Wins en verlies op vervreemding word bepaal deur 'n vergelyking van die opbrengs met die drabedrag. Die verskil word erken in die Inkomstestaat. 1.4 BELEGGINGSEIENDOM Beleggingseiendom is grond en geboue, besit deur die Groep, met die doelstelling om hure te vorder of vir toename in kapitaalwaarde, eerder as in die produksie en verskaffing van 1.3 PROPERTY, PLANT AND EQUIPMENT Land and buildings consist mainly of grain silos, retail outlets, wearhouses, factories, an abattoir, an open cast mine and offices. All property, plant and equipment are shown at cost (including borrowing costs - refer note 1.16 and 2.11) less subsequent decrease in value and impairment, except for land, which is shown at cost less impairment. The cost price includes costs directly attributable to the acquisition of the assets. Additional costs are either included in the carrying amount of the existing asset or recognised as an individual asset, as the case may be, only if it is probable that future economic benefits relating to the item will flow to the Group and the cost price of the item can be reliably measured. All other repair and maintenance costs are recognised in the Income Statement in the financial period in which they were incurred. Decrease in value is calculated according to the straightline basis to decrease the cost price of each asset to the residual value of the asset over the expected useful life of the asset, as follows: Land None Buildings years Silos 50 years Steel silos 25 years Silo machinery and equipment 15 years Machinery and equipment 6-25 years Office furniture and equipment 6-15 years Computers 4-5 years Motor vehicles - LDVs, motor cars and other vehicles 5-15 years Motor vehicles - trucks and tractors 8-15 years Implements years The residual values and useful lives of assets are reviewed and adjusted, if necessary, on each balance sheet date. The carrying amount of an asset is immediately written down to the realisable amount thereof if the carrying amount of the asset exceeds it. Profit and loss on disposal are determined by means of a comparison of the return with the carrying amount. The difference is recognised in the Income Statement. 1.4 INVESTMENT PROPERTY Investment property consists of land and buildings, owned by the Group, with the objective of collecting rentals or 38

43 1.4 BELEGGINGSEIENDOM (vervolg) goedere, of vir administrasie doeleindes. Alle beleggingseiendom word getoon teen kosprys min latere waardevermindering en waardedaling, behalwe vir grond wat getoon word teen kosprys min waardedaling. Waardevermindering word bereken volgens die reguitlynbasis om die kosprys van elke bate na die bate se reswaarde te verminder oor die bate se verwagte nuttige lewensduur, soos volg: Beleggingseiendom - grond Geen Beleggingseiendom - geboue 50 jaar 1.5 ONTASBARE BATES KLANDISIEWAARDE Klandisiewaarde verteenwoordig die surplus van die kosprys van 'n verkryging bo die billike waarde van die Groep se belang in netto identifiseerbare waardes van die besigheidsamevoeging of filiaal/geassosieerde op die datum van verkryging. Klandisiewaarde uit verkrygings word ingesluit in ontasbare bates. Klandisiewaarde uit die verkryging van 'n geassosieerde word ingesluit in die beleggings in geassosieerdes. Klandisiewaarde word jaarliks getoets vir waardedaling en word gedra teen kosprys min opgelope waardedaling. Wins en verlies met die verkoop van 'n entiteit sluit die drabedrag van klandisiewaarde toeskryfbaar aan daardie entiteit in. Klandisiewaarde word na kontant-genererende eenhede of groepe van kontant-genererende eenhede geallokeer, waar verwag word dat voordeel getrek sal word uit die verkryging waarin die klandisiewaarde ontstaan het. Enige waardedaling word onmiddellik in wins en verlies erken en word nie op 'n latere stadium teruggeskryf nie. Negatiewe klandisiewaarde wat ontstaan by verkryging, word direk in die Inkomstestaat erken REKENAARSAGTEWARE Aangekoopte rekenaarsagtewarelisensies word gekapitaliseer op die grondslag van die koste aangegaan om die spesifieke sagteware te verkry en in gebruik te stel. Hierdie koste word volgens die reguitlynbasis oor die verwagte nuttige lewensduur geamortiseer. Kostes geassosieer met die ontwikkeling of instandhouding van rekenaarsagtewareprogramme word as 'n uitgawe erken soos aangegaan. Kostes direk toeskryfbaar aan die produksie van identifiseerbare en unieke sagtewareprodukte onder die beheer van die Groep, wat na 1.4 INVESTMENT PROPERTY (continued) increasing capital value, rather than producing and supplying goods or for administrative purposes. All investment property is shown at cost less subsequent decrease in value and impairment, except for land, which is shown at cost less impairment. Decrease in value is calculated according to the straightline basis to reduce the cost price of each asset to the residual value of the asset over the expected useful life of the asset, as follows: Investment property - land None Investment property - buildings 50 years 1.5 INTANGIBLE ASSETS GOODWILL Goodwill represents the surplus of the cost price of an acquisition over the fair value of the Group's interest in net identifiable values of the business merger or subsidiary /associate on the date of acquisition. Goodwill from acquisitions is included in intangible assets. Goodwill from the acquisition of an associate is included in investments in associates. Goodwill is tested annually for impairment and is carried at cost less accumulated impairment. Profit and loss on the sale of an entity include the carrying amount of goodwill attributable to that entity. Goodwill is allocated to cash-generating units or groups of cash-generating units where it is expected that benefit will be gained from the acquisition in which the goodwill originated. Any impairment is recognised immediately in profit and loss and is not written back at a later stage. Negative goodwill arising on acquisition is recognised directly in the Income Statement COMPUTER SOFTWARE Computer software licenses bought are capitalised on the basis of the costs incurred to acquire and commission the specific software. These costs are amortised according to the straight-line basis over the expected useful life. Costs associated with the development or maintenance of computer software programs are recognised as an expense as incurred. Costs directly attributable to the production of identifiable and unique software products under the control of the Group that are expected to 39

44 1.5.2 REKENAARSAGTEWARE (vervolg) verwagting ekonomiese voordele vir langer as een jaar, wat koste oorskry, sal genereer, word as 'n ontasbare bate erken. Direkte koste sluit sagteware-ontwikkeling se werknemerskoste, asook 'n toepaslike deel van relevante bokoste in. Rekenaarsagteware-ontwikkelingskoste wat as 'n bate erken word, word op 'n reguitlynbasis oor die verwagte nuttige lewensduur daarvan geamortiseer, soos volg: Sagteware 5 jaar PRODUKONTWIKKELINGSKOSTES Kostes verbonde aan die ontwikkeling van 'n produk, word as 'n ontasbare bate erken sodra die volgende vereistes nagekom is: dit is tegnies lewensvatbaar om die ontwikkeling van die bate te voltooi om sodoende aangewend te word; die moontlikheid bestaan om die ontasbare bate te gebruik of te verkoop; bestuur is van voorneme om die ontasbare bate te voltooi om sodoende gebruik of verkoop te word; die waarskynlikheid van toekomstige ekonomiese voordele kan gedemonstreer word; genoegsame finansiële, tegniese en ander bronne bestaan om die ontwikkeling van die ontasbare bate en die verkoop of gebruik daarvan te bewerkstelling; en die ontwikkelingskoste kan betroubaar gemeet word. Produkontwikkelingskostes het 'n beperkte nuttige lewensduur en word teen kosprys min opgelope amortisasie gedra. Amortisasie word bereken volgens die reguitlynbasis om die kosprys van die bate oor die bate se verwagte nuttige lewensduur te allokeer, soos volg: Produk ontwikkelingskostes 10 jaar HANDELSMERKE, KLIËNTEVERHOUDINGE EN MINERAALREGTE Handelsmerke, kliënteverhoudinge en mineraalregte word teen historiese kosprys getoon. Handelsmerke, kliënteverhoudinge en mineraalregte het 'n beperkte nuttige lewensduur en word teen kosprys min opgelope amortisasie gedra. Amortisasie word volgens die reguitlynbasis bereken om die kosprys van die handelsmerke, kliënteverhoudinge en COMPUTER SOFTWARE (continued) generate economic benefits exceeding costs for a period of more than one year are recognised as an intangible asset. Direct costs include software development employee costs as well as an appropriate portion of relevant overhead costs. Computer software developments costs recognised as an asset are amortised on a straight-line basis over the expected useful life thereof, as follows: Software 5 years PRODUCT DEVELOPMENT COSTS Costs relating to the development of a product are recognised as an intangible asset as soon as the following requirements have been met: it is technically viable to complete the development of the asset to be thus applied; the possibility exists of using or selling the intangible asset; management intend completing the intangible asset to be thus used or sold; the probability of future economic benefits can be demonstrated; sufficient financial, technical and other sources exist to enable the development of the intangible asset and the use or sale thereof; and the development costs can be reliably measured. Product development costs have a limited useful life and are carried at cost less accumulated amortisation. Amortisation is calculated on the straight-line basis to allocate the cost price of the asset over its expected useful life, as follows: Product development costs 10 years TRADEMARKS, CLIENT RELATIONSHIPS AND MINERAL RIGHTS Trademarks, client relationships and mineral rights are shown at historical cost. Trademarks, client relationships and mineral rights have a limited useful life and are carried at cost less accumulated amortisation. Amortisation is calculated according to the straight-line basis to allocate 40

45 1.5.4 HANDELSMERKE, KLIËNTEVERHOUDINGE EN MINERAALREGTE (vervolg) mineraalregte oor die verwagte nuttige lewensduur te allokeer. Handelsmerke 20 jaar Kliënteverhoudinge 20 jaar Mineraalregte 300 jaar 1.6 WAARDEDALING VAN NIE-FINANSIËLE BATES Bates met 'n onbeperkte nuttige lewensduur is nie onderhewig aan amortisasie nie en word jaarliks vir waardedaling getoets. Bates wat onderhewig is aan depresiasie of amortisasie word vir waardedaling ondersoek wanneer daar gebeure of veranderde omstandighede is wat aandui dat die drabedrag nie verhaalbaar is nie. 'n Waardedaling word erken vir die bedrag waarmee die drabedrag die verhaalbare waarde oorskry. Die verhaalbare bedrag is die grootste van die bate se billike waarde min verkoopskoste en waarde-in-gebruik. Vir doeleindes van toetsing vir waardedaling, word bates in die laagste vlakke van afsonderlik identifiseerbare kontantgenererende eenhede gegroepeer. Nie-finansiële bates, anders as klandisiewaarde, wat 'n waardedaling gely het, word op elke rapporteringsdatum hersien vir moontlike terugskrywing van die waardedaling. 1.7 FINANSIËLE BATES Die Groep klassifiseer sy beleggings in die volgende kategorieë: finansiële bates teen billike waarde deur wins of verlies, lenings en debiteure, hou-tot-verval beleggings en finansiële bates beskikbaar-vir-verkoop. Die klassifikasie hang af van die doel waarvoor die beleggings verkry is. Bestuur bepaal die klassifikasie van sy beleggings met aanvanklike erkenning en herevalueer dié toewysing op elke verslagdatum. Finansiële bates teen billike waarde deur wins of verlies Hierdie kategorie het twee subkategorieë: hou-virverhandeling finansiële bates en die wat by ontstaan teen billike waarde deur wins of verlies aangewys word. 'n Finansiële bate word in hierdie kategorie geklassifiseer indien dit hoofsaaklik verkry is om op kort termyn verkoop te word, of indien dit só deur Bestuur aangewys is. Afgeleide instrumente word ook as hou-vir-verhandeling gekategoriseer. Bates in hierdie kategorie word as bedryfsbates geklassifiseer indien dit, óf vir verhandeling gehou word, óf verwag word dat dit binne twaalf maande na die balansstaatdatum gerealiseer sal word TRADEMARKS, CLIENT RELATIONSHIPS AND MINERAL RIGHTS (continued) the cost price of the trademarks, client relationships and mineral rights over the expected useful lives thereof. Trademarks 20 years Client relationships 20 years Mineral rights 300 years 1.6 IMPAIRMENT OF NON-FINANCIAL ASSETS Assets with an unlimited useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to depreciation or amortisation are examined for impairment when there are events or changes in circumstances indicating that the carrying amount may not be recoverable. An impairment is recognised for the amount by which the carrying amount exceeds the recoverable value. The recoverable amount is the larger of the fair value of the asset less sales costs and value-in-use. For the purposes of testing for impairment, assets are grouped into the lowest levels of separately identifiable cash-generating units. Non-financial assets other than goodwill that have suffered impairment are reviewed on each reporting date for possible writeback of the impairment. 1.7 FINANCIAL ASSETS The Group classifies its investments under the following categories: financial assets at fair value through profit or loss, loans and debtors, investments to be kept until maturity and financial assets available for sale. The classification depends on the purpose which the investments were acquired for. Management determines the classification of the investments on initial recognition and re-evaluate this allocation on each reporting date. Financial assets at fair value through profit or loss This category has two sub-categories: held-for-trading financial assets and those designated at fair value through profit or loss upon origination. A financial asset is classified under this category if it was acquired mainly to be sold in the short term, or if it was so designated by Management. Derivative instruments are also categorised as held-fortrading. Assets in this category are classified as operating assets if they are either held for trading or expected to be realised within twelve months of the balance sheet date. 41

46 1.7 FINANSIËLE BATES (vervolg) Lenings en debiteure Lenings en debiteure is nie-afgeleide finansiële bates met vaste of bepaalbare betalings wat nie in 'n aktiewe mark gekwoteer word nie. Dit ontstaan wanneer die Groep geld, goedere of dienste direk aan 'n debiteur verskaf sonder enige voorneme om sodanige debiteure te verhandel. Dit word in bedryfsbates ingesluit. In die geval van vervaldatums langer as twaalf maande na die balansstaatdatum, word dit as nie-bedryfsbates geklassifiseer. Lenings en debiteure word in handels- en ander debiteure in die Balansstaat ingesluit. Hou-tot-verval-beleggings Hou-tot-verval-beleggings is nie-afgeleide finansiële bates met vaste of bepaalbare betalings en vaste vervaldatums ten opsigte waarvan die Groep se Bestuur van voorneme is en die vermoë het om dit tot vervaldatum te hou. Finansiële bates beskikbaar-vir-verkoop Finansiële bates beskikbaar-vir-verkoop is nie-afgeleide instrumente wat óf in hierdie kategorie aangewys word óf nie in enige van die ander kategorieë geklassifiseer word nie. Dit word in nie-bedryfsbates ingesluit tensy die Bestuur beoog om die belegging binne twaalf maande na die Balansstaat te verkoop. Die koop en verkoop van beleggings word op die handelsdatum, die datum waarop die Groep hom daartoe verbind om die bate te koop of te verkoop, erken. Beleggings ten opsigte van alle finansiële bates wat nie teen billike waarde deur wins of verlies gedra word nie, word aanvanklik teen billike waarde plus transaksiekoste erken. Finansiële bates gedra teen billike waarde deur wins en verlies, word aanvanklik erken teen billike waarde. Transaksiekoste word in die Inkomstestaat erken. Beleggings word nie meer erken nie wanneer die regte om kontantvloeie uit die beleggings te ontvang verval het of oorgedra is en die Groep wesenlik alle risiko's en belonings van eienaarskap oorgedra het. Finansiële bates beskikbaar-vir-verkoop en finansiële bates teen billike waarde deur wins of verlies word daarna teen billike waarde gedra. Lenings en debiteure en hou-tot-vervalbeleggings word teen geamortiseerde koste volgens die effektiewe opbrengsmetode gedra. Gerealiseerde en ongerealiseerde winste en verliese voortspruitend uit veranderings in die kategorie "billike waarde van die finansiële bates deur wins of verlies" word in die Inkomstestaat ingesluit in die tydperk waarin dit ontstaan. Ongerealiseerde winste en verliese voortspruitend uit veranderings in die billike waarde van sekuriteite wat as beskikbaar-vir-verkoop 1.7 FINANCIAL ASSETS (continued) Loans and debtors Loans and debtors are non-derivative financial assets wth fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor without any intention of trading such debtors. They are included in operating assets. In the case of dates of maturity exceeding twelve months after balance sheet date they are classified as nonoperating assets. Loans and debtors are included in trade and other debtors in the Balance Sheet. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed dates of maturity which the Group's Management intend and are able to keep to maturity. Available-for-sale financial assets Financial assets available for sale are non-derivative instruments that are either designated under this category or are not classified under any of the other categories. They are included under non-operational assets unless Management intend selling the investment within twelve months of Balance Sheet date. The acquisition and sale of investments are recognised on the trading date, the date on which the Group commits itself to acquire or sell the asset. Investments in respect of all financial assets not carried at fair value through profit or loss are initially recognised at fair value plus transaction costs. Financial assets carried at fair value through profit and loss are initially recognised at fair value. Transaction costs are recognised in the Income Statement. Investments are no longer recognised when the rights to receive cash flows from the investments have expired or been transferred and the Group has materially transferred all risks and rewards of ownership. Financial assets available for sale and financial assets at fair value through profit or loss are carried at fair value thereafter. Loans and debtors and held-to-maturity investments are carried at amortised cost according to the effective return method. Realised and unrealised profits and losses arising from changes in the category "fair value of the financial assets through profit or loss" are included in the Income Statement 42

47 uitmuntend 43

48 1.7 FINANSIËLE BATES (vervolg) geklassifiseer is, word in ekwiteit erken. Wanneer sekuriteite wat as beskikbaar-vir-verkoop geklassifiseer is, verkoop word, of ten opsigte waarvan waardedaling plaasvind, word die opgehoopte billike waarde-aanpassings as winste en verliese uit beleggingsekuriteite in die Inkomstestaat ingesluit. Die billike waardes van gekwoteerde beleggings word op heersende aanbodpryse gebaseer. Indien die mark vir 'n finansiële bate (en vir genoteerde sekuriteite) nie aktief is nie, bepaal die Groep billike waarde met behulp van waardasietegnieke. Dit sluit in die gebruik van onlangse armlengte-transaksies, verwysing na ander instrumente wat wesenlik dieselfde is en verdiskonteerde kontantvloei-ontleding, wat verfyn word om die uitreiker se spesifieke omstandighede te weerspieël. Die Groep bepaal op elke balansstaatdatum of objektiewe bewys bestaan dat waardedaling ten opsigte van 'n finansiële bate of groep finansiële bates plaasgevind het. In die geval van ekwiteitsekuriteite wat as beskikbaar-vir-verkoop geklassifiseer is, word 'n aansienlike of verlengde daling in die billike waarde van die sekuriteit tot onder kosprys oorweeg om te bepaal of waardedaling ten opsigte van die sekuriteite plaasgevind het. Indien enige sodanige bewys ten opsigte van beskikbaar-virverkoop finansiële bates bestaan, word die kumulatiewe verlies, gemeet as die verskil tussen die verkrygingskoste en die huidige billike waarde, min enige waardedaling op die betrokke finansiële bate wat voorheen in wins of verlies erken is, uit ekwiteit verwyder en in die Inkomstestaat erken. Waardedaling wat in die Inkomstestaat op ekwiteitsinstrumente erken word, word nie deur die Inkomstestaat teruggeskryf nie. As daar 'n huidige regsafdwingbare reg bestaan om erkende bedrae van finansiële bates en laste wat in bepaalbare monetêre eenhede is, teen mekaar te verreken en die Groep is van plan om op 'n netto basis te verreken, word die relevante bates en laste teen mekaar verreken. 1.8 VERANTWOORDING VIR AFGELEIDE FINANSIËLE INSTRUMENTE EN VERSKANSINGSAKTIWITEITE Afgeleide instrumente word aanvanklik teen billike waarde op die datum waarop 'n afgeleide kontrak aangegaan word, erken en daarna teen billike waarde herwaardeer. Afgeleide instrumente kwalifiseer nie vir verskansingsverantwoording nie. Veranderings in die billike waarde van enige afgeleide instrumente, word onmiddellik in die Inkomstestaat erken. 1.7 FINANCIAL ASSETS (continued) in the period in which they arise. Unrealised profits and losses arising from changes in the fair value of securities classified as available for sale are recognised in equity. When securities classified as available for sale are sold or become impaired, the accumulated fair value adjustments are included in the Income Statement as profits and losses from investment securities. The fair values of quoted investments are based on current supply prices. If the market for a financial asset (and for listed securities) is not active, the Group determines fair value based on valuation techniques. This includes the use of recent arm's-length transactions, reference to other instruments that are materially the same and discounted cash flow analysis, refined to reflect the specific circumstances of the issuer. The Group determines at each balance sheet date whether objective proof exists that an impairment in respect of a financial asset or group of financial assets has occurred. In the case of equity securities classified as available for sale, a significant or extended decline in the fair value of the security to below cost is considered to determine whether an impairment has occurred in respect of the securities. If any such proof exists in respect of available-for-sale financial assets, the cumulative loss, measured as the difference between the acquisition cost and the current fair value, less any impairment on the relevant financial asset previously recognised in profit or loss, is removed from equity and recognised in the income statement. Impairment recognised in the income statement on equity instruments is not written back through the Income Statement. If a current legally enforceable right exists to set off recognised amounts of financial assets and liabilities appearing in determinable currencies and the Group intends setting them off on a net basis, the relevant assets and liabilities are set off against each other. 1.8 ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative instruments are initially recognised at fair value on the date on which a derivative contract is concluded and revalued at fair value thereafter. Derivative instruments do not qualify for hedging accounting. Changes in the fair value of any derivative instruments are recognised immediately in the Income Statement. 44

49 1.9 VOORRAAD Voorraad word teen die laagste van kosprys of netto realiseerbare waarde erken. Kosprys word volgens die gemiddelde kosprysmetode bepaal. Die kosprys van klaarprodukte en werk-inproses behels grondstowwe, direkte arbeid, ander direkte koste en verwante produksiebokoste (gebaseer op normale bedryfskapasiteit). Leenkoste word gekapitaliseer teen voorraad ingevolge die bepalings van IAS 23 wat vroeg aangeneem is deur die Maatskappy (verwys aantekening 1.16 en 2.11). Netto realiseerbare waarde is die geraamde verkoopsprys in die gewone gang van sake, min toepaslike veranderlike verkoopskoste BIOLOGIESE BATES Lewende hawe word teen billike waarde min geraamde verkoopskoste getoon. Billike waarde-aanpassings word in die Inkomstestaat erken. Alle koste wat by die verkryging van biologiese bates aangegaan word, word gekapitaliseer. Finansieringskoste word nie gekapitaliseer nie HANDELSDEBITEURE Handelsdebiteure word aanvanklik teen billike waarde erken en daarna teen geamortiseerde koste volgens die effektiewe opbrengsmetode, min voorsiening vir waardedaling gemeet. 'n Voorsiening vir waardedaling van handelsdebiteure word geskep wanneer objektiewe bewys bestaan dat die Groep nie alle bedrae wat ingevolge die oorspronklike kredietterme verskuldig is, sal kan invorder nie. Die bedrag van die voorsiening is die verskil tussen die drawaarde van die bate en die huidige waarde van geraamde toekomstige kontantvloeie verdiskonteer teen die effektiewe rentekoers. Die bedrag van die voorsiening word in die Inkomstestaat erken. Die normale kredietterme van handelsdebiteure is soos volg: Produksierekeninge < 365 dae Oorlaatskuld > 365 dae Handelsdebiteure Tussen 30 en 60 dae Diverse debiteure Tussen 30 en 90 dae 1.12 KONTANT EN KONTANTEKWIVALENTE Kontant en kontantekwivalente word in die Balansstaat teen kosprys gedra. Kontant en kontantekwivalente bestaan uit kontant op hande, aanvraagdeposito's by banke, ander korttermyn, hoogs likiede beleggings met vervaldatums van drie maande of minder en oortrokke bankrekeninge. Oortrokke bankrekeninge word as deel van korttermynlenings onder bedryfslaste op die Balansstaat ingesluit. 1.9 INVENTORY Inventory is recognised at the lower of cost or net realisable value. Cost is determined in accordance with the average cost price method. The cost price of finished products and work in process involves raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity). Loan costs are capitalised against inventory under the provisions of IAS 23, which was adopted early by the Company (refer notes 1.16 and 2.11). Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling costs BIOLOGICAL ASSETS Livestock is shown at fair value less estimated sales cost. Fair value adjustments are recognised in the Income Statement. All costs incurred upon the acquisition of biological assets are capitalised. Financing costs are not capitalised TRADE DEBTORS Trade debtors are initially recognised at fair value and thereafter at amortised cost according to the effective return method, less provision for impairment as measured. A provision for impairment of trade debtors is created when objective proof exists that the Group will not be able to collect all amounts owing in terms of the original credit terms. The amount of the provision is the difference between the carrying value of the asset and the current value of estimated future cash flows discounted against the effective interest rate. The amount of the provision is recognised in the Income Statement. The normal credit terms of trade debtors are as follows: Production accounts < 365 days Past due debt > 365 days Trade debtors Between 30 and 60 days Sundry debtors Between 30 and 90 days 1.12 CASH AND CASH EQUIVALENTS Cash and cash equivalents are carried in the Balance Sheet at cost. Cash and cash equivalents consist of cash on hand, demand deposits at banks, other short-term highly liquid investments with maturities of three months or less and overdrafts. Overdrafts are included on the Balance Sheet under operating liabilities as part of short-term loans. 45

50 1.13 AANDELEKAPITAAL Gewone aandele word as ekwiteit geklassifiseer. Inkrementele koste direk toeskryfbaar aan die uitreiking van nuwe aandele of opsies word as 'n vermindering, na aftrekking van inkomstebelasting, van die opbrengste in ekwiteit getoon. Inkrementele koste direk toeskryfbaar aan die uitreiking van nuwe aandele, of vir die verkryging van 'n besigheid, word as 'n vermindering van ekwiteit erken. Waar enige maatskappy binne die Groep, die Groep se ekwiteitsaandelekapitaal (tesourie-aandele) koop, word die teenprestasie, insluitende enige direk toeskryfbare inkrementele koste na aftrekking van inkomstebelasting wat betaal word, afgetrek van ekwiteit toeskryfbaar aan die Groep se ekwiteitshouers totdat die aandele gekanselleer, heruitgereik of van die hand gesit word. Waar sodanige aandele vervolgens verkoop of heruitgereik word, word enige teenprestasie wat ontvang word, na aftrekking van enige direk toeskryfbare inkrementele transaksiekoste en die betrokke inkomstebelastingeffek, in ekwiteit toeskryfbaar aan die Groep se ekwiteitsaandeelhouers ingesluit LENINGS Lenings word aanvanklik teen billike waarde, na aftrekking van transaksiekoste aangegaan, erken. Lenings word vervolgens teen geamortiseerde koste getoon. Enige verskil tussen opbrengs na aftrekking van transaksiekoste, en aflossingswaarde word oor die tydperk van die lenings volgens die effektiewe opbrengsmetode in die Inkomstestaat erken. Lenings word as bedryfslaste geklassifiseer tensy die Groep 'n onvoorwaardelike reg het om die vereffening van die las tot minstens twaalf maande na die balansstaatdatum uit te stel UITGESTELDE INKOMSTEBELASTING Uitgestelde inkomstebelasting word ten volle voorsien op die aanspreeklikheidsmetode in die finansiële state vir tydelike verskille wat tussen die belastingbasisse van bates en laste en hulle drawaardes in die finansiële state ontstaan. Indien die uitgestelde inkomstebelasting egter voortspruit uit aanvanklike erkenning van 'n bate of las in 'n transaksie anders as 'n besigheidsamevoeging wat ten tye van die transaksie nóg rekeningkundige nóg belasbare wins of verlies beïnvloed, word dit nie erken nie. Uitgestelde inkomstebelasting word bepaal volgens belastingkoerse en wette wat teen die balansstaatdatum gepromulgeer of wesenlik gepromulgeer is en na verwagting van toepassing sal wees wanneer die verwante 1.13 SHARE CAPITAL Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown as a decrease, after the deduction of income tax, of the returns in equity. Incremental costs directly attributable to the issue of new shares, or for the acquisition of a business, are recognised as a decrease of equity. Where any company within the Group acquires the Group's equity share capital (treasury shares), the consideration, including any directly attributable incremental costs after the deduction of income tax paid, is deducted from equity attributable to the Group's equity holders until the shares have been cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received is included in equity attributable to the Group's equity shareholders, after the deduction of any directly attributable incremental transaction costs and the relevant income tax effect BORROWINGS Borrowings are initially recognised at fair value, after the deduction of transaction costs incurred. Borrowings are subsequently shown against amortised costs. Any difference between return after deduction of transaction costs, and redemption value is recognised in the Income Statement over the period of the borrowings according to the effectivereturn method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer the settlement of the liability until at least twelve months after balance sheet date DEFERRED INCOME TAX Deferred income tax is fully provided for in the financial statements, according to the liability method, for temporary differences arising between the tax bases of assets and liabilities and their carrying values in the financial statements. If, however, the deferred income tax arose from the initial recognition of an asset or liability in a transaction other than a business merger influencing, at the time of the transaction, neither accounting nor taxable profit or loss, it is not recognised. Deferred income tax is determined according to tax rates and acts promulgated or materially promulgated at balance sheet date and expected to apply 46

51 1.15 UITGESTELDE INKOMSTEBELASTING (vervolg) uitgestelde inkomstebelastingbate gerealiseer word of die uitgestelde inkomstebelastinglas vereffen word. Uitgestelde inkomstebelastingbates word erken, vir sover dit waarskynlik is, dat toekomstige belasbare wins beskikbaar sal wees waarteen die tydelike verskille benut kan word LEENKOSTE Leenkoste wat direk toeskryfbaar is aan die verkryging, oprigting of produksie van 'n kwalifiserende bate word gekapitaliseer as deel van die koste van daardie bate. Ander leenkoste word in die Inkomstestaat as 'n uitgawe erken. Leenkoste sluit in rente sowel as ander uitgawes wat die Groep aangaan in verband met die leenkoste HURE GROEP IS DIE HUURDER Hure ten opsigte van eiendom, aanleg en toerusting waar die Groep wesenlik al die risiko's en voordele van eienaarskap het, word as bruikhuurkontrakte geklassifiseer. Bruikhuurkontrakte word met die aangaan van die bruikhuurkontrak teen die laagste van billike waarde van die bruikhuureiendom en die huidige waarde van die minimum bruikhuurbetalings gekapitaliseer. Elke huurbetaling word tussen die verpligting en finansieringskoste geallokeer om 'n konstante koers ten opsigte van die uitstaande finansieringsaldo te verkry. Die ooreenstemmende bruikhuurverpligtinge, na aftrekking van finansieringskoste, word verantwoord in lenings. Die rente-element van die finansieringskoste word oor die bruikhuurtermyn teen die Inkomstestaat gedebiteer om 'n konstante periodieke rentekoers ten opsigte van die oorblywende saldo van die las vir elke tydperk te lewer. Die eiendom, aanleg en toerusting wat ingevolge bruikhuurkontrakte verkry word, word oor die nuttige lewensduur van die bate of die bruikhuurtermyn, wat ook al die kortste is, gedepresieer. Hure, waar die verhuurder 'n aansienlike gedeelte van risiko's en belonings van eienaarskap behou, word as bedryfshuurkontrakte geklassifiseer. Betalings wat ingevolge bedryfshuurkontrakte gedoen word, na aftrekking van enige aansporings wat van die verhuurder ontvang word, word op 'n reguitlynbasis oor die termyn van die huurkontrak teen die Inkomstestaat gedebiteer DEFERRED INCOME TAX (continued) when the relevant deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are recognised in so far as it is probable that future taxable profit will be available against which to utilise the temporary differences BORROWING COSTS Borrowing costs directly attributable to the acquisition, establishment or production of a qualifying asset are capitalised as part of the costs of that asset. Other borrowing costs are recognised as an expense in the Income Statement. Borrowing costs include interest as well as other expenditure incurred by the Group in relation to the borrowing costs RENTALS GROUP IS THE LESSEE Rentals in respect of property, plant and equipment where the Group essentially bears all the risks and enjoys all the benefits of ownership are classified as leases. Leases are capitalised upon conclusion thereof at the lower of fair value of the lease property and the current value of the minimum lease payments. Each lease payment is allocated between the liability and financing costs to obtain a constant rate in respect of the outstanding financing balance. The corresponding lease liabilities, after deduction of financing costs, are accounted for under loans. The interest element of the financing costs is debited against the Income Statement over the lease term to provide a constant periodic interest rate in respect of the remaining balance of the liability for each period. The property, plant and equipment acquired in terms of leases are depreciated over the shorter of the useful life of the asset and the lease term. Rentals where the lessor retains a significant portion of the risks and rewards of ownership are classified as operating leases. Payments made in terms of operating leases, following the deduction of any incentives received from the lessor, are debited against the Income Statement on a straight-line basis over the term of the lease. 47

52 GROEP IS DIE VERHUURDER Wanneer bates ingevolge 'n bruikhuurkontrak verhuur word, word die huidige waarde van die bruikhuurbetalings as 'n debiteur erken. Die verskil tussen die bruto debiteur en die huidige waarde van die debiteur word as onverdiende finansieringsinkomste erken. Bruikhuurinkomste word oor die termyn van die bruikhuurkontrak volgens die netto beleggingsmetode erken, wat 'n konstante periodieke opbrengskoers weerspieël. Bates wat ingevolge bedryfshuurkontrakte aan derde partye verhuur word, word in beleggingseiendom in die Balansstaat ingesluit. Die bates word oor hulle verwagte nuttige lewensduur gedepresieer op 'n grondslag wat ooreenstem met soortgelyke beleggingseiendom wat besit word. Huurinkomste na aftrekking van enige aansporings wat aan huurders gegee word, word op 'n reguitlynbasis oor die termyn van die huurkontrak erken WERKNEMERVOORDELE PENSIOENVERPLIGTINGE Die Groep bedryf verskeie pensioenskemas. Die Groep het omskrewe vastebydrae-planne. 'n Omskrewe vastebydraeplan is 'n pensioenplan ingevolge waarvan die Groep vaste bydraes in die afsonderlike entiteite inbetaal. Die Groep het geen wetlike of afgeleide verpligtinge om verdere bydraes te betaal indien die fonds nie toereikende bates het om die voordele met betrekking tot werknemerdiens in die huidige en vorige tydperke aan alle werknemers te betaal nie. Vir omskrewe vastebydrae-planne betaal die Groep bydraes aan staats- of privaat-geadministreerde pensioenversekeringsplanne op 'n verpligte, kontraktuele of vrywillige grondslag. Die bydraes word as werknemervoordeelkoste erken wanneer dit verskuldig is. Voorafbetaalde bydraes word as 'n bate erken vir sover 'n kontantterugbetaling of 'n afname in toekomstige betalings beskikbaar is NA- AFTREDE MEDIESE VERPLIGTINGE Die Groep verskaf na-aftrede mediese voordele aan 'n spesifieke groepering van deelnemende voormalige en huidige werknemers by wyse van 'n bydrae tot hul maandelikse koste. Die na-aftrede mediese voordeel-verpligting en die koste van die voordeel word jaarliks deur 'n onafhanklike aktuaris bepaal. Enige oorskotte of tekorte tussen die aktuarieel-bepaalde verpligting en die bedrae voorsien, word geallokeer na die Inkomstestaat van die bepaalde jaar. Die aannames gebruik sluit langtermynskattings in die verbruikersprysindeks en toepaslike verdiskonteringskoerse in GROUP IS THE LESSOR When assets are leased in terms of a lease contract, the current value of the lease payments is recognised as a debtor. The difference between the gross debtor and the current value of the debtor is recognised as an unearned financing income. Lease income is recognised over the term of the lease in accordance with the net investment method, which reflects a constant periodic rate of return. Assets leased to third parties in terms of operating leases are included in investment property in the Balance Sheet. The assets are depreciated over their expected useful life on a basis agreeing with similar investment property owned. Lease income net of any incentives given to lessees is recognised on a straight-line basis over the term of the lease EMPLOYEE BENEFITS PENSION OBLIGATIONS The Group operates various pension schemes. The Group has defined fixed-contribution plans. A defined fixedcontribution plan is a pension plan in terms of which the Group pays over fixed contributions to the separate entities. The Group has no legal or derivative obligation to pay any further contributions if the fund does not have sufficient assets to pay the benefits with regard to employee service in the current and previous periods to all employees. For defined fixed-contribution plans, the Group makes contributions to state or privately administered pension insurance plans on a compulsory, contractual or voluntary basis. The contributions are recognised as employee benefit costs when owing. Prepaid contributions are recognised as an asset in so far as a cash repayment or a decrease in future payments is available POST-RETIREMENT MEDICAL OBLIGATIONS The Group provides post-retirement medical benefits to a specific grouping of participating former and current employees by means of a contribution to their monthly costs. The post-retirement medical benefit obligation and the cost of the benefit are determined annually by an independent actuary. Any surpluses or deficits between the actuarially determined obligation and the amounts provided are allocated to the Income Statement of the relevant year. The assumptions used include long-term estimates in the consumer price index and applicable discount rates. 48

53 PRESTASIEVERGOEDINGSKEMA n Prestasievergoedingskema is deur die Direksie goedgekeur. Die prestasievergoedingskema het ten doel om personeel aan te moedig om spesifieke ooreengekome doelwitte te bereik en erkenning te gee vir bewese goeie prestasie deur personeel. Die prestasievergoedingskema word uitsluitlik op diskresie van die Direksie toegeken. 'n Aanspreeklikheid vir die prestasievergoedingskema word onder handel- en ander krediteure erken indien daar geen realistiese alternatief is as om die las te vereffen nie. Daar word verwag dat die aanspreeklikheid binne twaalf maande vereffen sal word LANGTERMYN-AANSPORINGSKEMA Die Groep bedryf ook 'n aansporingskema wat gebaseer is op skimaandele. Die langtermyn-aansporingskema het ten doel om prestasie te bestuur volgens Direksie se strategië. Die langtermyn-aansporingskema behels spesifieke ooreengekome doelwitte met Uitvoerende Direkteure en word uitsluitlik op diskresie van die Direksie toegeken. Die billike waarde van die opgelope verpligting vir die langtermyn-aansporingskema word in die Inkomstestaat erken. Die Groep herevalueer die billike waarde-aanpassing van die verpligting op elke balanstaatdatum en op die vereffeningsdatum totdat die verpligting vereffen word. Enige verandering in billike waarde word in die Inkomstestaat gedurende die betrokke periode erken VOORSIENINGS Voorsienings word erken wanneer: die Groep 'n huidige regs- of konstruktiewe verpligting as gevolg van gebeure in die verlede het; dit meer waarskynlik is dat 'n uitvloei van ekonomiese voordele vereis sal word om die verpligting te vereffen; en die bedrag betroubaar geraam is. Voorsienings word teen die huidige waarde van die uitgawes wat na verwagting vereis gaan word om die verpligting te vereffen, gemeet volgens 'n voorbelaste koers wat huidige markomstandighede van die tydwaarde van geld en die spesifieke risiko van die verpligting weerspieël. Die toename in die voorsiening as gevolg van die verloop van tyd word as 'n renteuitgawe erken FINANSIËLE WAARBORGE 'n Finansiële waarborg-kontrak is 'n kontrak wat vereis dat die waarborggewer spesifieke betalings maak aan die houer van PERFORMANCE INCENTIVE SCHEME A performance incentive scheme was approved by the Board. The performance incentive scheme is aimed at encouraging personnel to achieve specific agreed objectives and acknowledging proven good performance by personnel. The performance incentive scheme is awarded at the sole discretion of the Board. A liability for the performance incentive scheme is recognised under trade and other creditors if there is no realistic alternative to settling the liability. It is expected that the liability will be settled within twelve months LONG-TERM INCENTIVE SCHEME The Group also operates an incentive scheme based on phantom shares. This long-term incentive scheme is aimed at managing performance in accordance with the Board's strategies. The long-term incentive scheme involves specific agreed objectives with Executive Directors and is awarded at the sole discretion of the Board. The fair value of the accrued liability for the long-term incentive scheme is recognised in the Income Statement. The Group revalues the fair value adjustment of the liability at each balance sheet date and at the settlement date until the liability has been settled. Any change in fair value is recognised in the Income Statement during the relevant period PROVISIONS Provisions are recognised when: the Group has a current legal or constructive liability due to events in the past; it is more probable that an outflow of economic benefits will be required to settle the liability; and the amount has been reliably estimated. Provisions are measured against the current value of the expenditure expected to be required to settle the liability, measured according to a pre-tax rate reflecting current market conditions of the time value of money and the specific risk of the liability. The increase in the provision due to the lapse of time is recognised as an interest expense FINANCIAL GUARANTEES A financial guarantee contract is a contract requiring that the issuer make specific payments to the holder of the guarantee to reimburse a loss due to default by a specified debtor when a debt was payable. Financial guarantees are 49

54 1.20 FINANSIËLE WAARBORGE (vervolg) die waarborg as vergoeding vir 'n verlies as gevolg van 'n gespesifiseerde debiteur se wanbetaling wanneer skuld betaalbaar was. Finansiële waarborge word aanvanklik waardeer teen billike waarde. Daarna word dit waardeer teen die hoogste van: i. die waarde bepaal in terme van IAS 37 Voorsienings, Voorwaardelike verpligtinge en Voorwaardelike bates; en ii. die waarde aanvanklik erken minus, indien van toepassing, kumulatiewe waardevermindering erken in terme van IAS 18 Inkomste INKOMSTE-ERKENNING Inkomste behels die billike waarde van die vergoeding ontvang of ontvangbaar vir die verkoop van goedere en dienste in die gewone loop van die Groep se aktiwiteite. Inkomste word getoon teen netto van belasting op toegevoegde waarde en kortings en afslag. Inkomste word soos volg erken: a) Verkope van goedere Verkope van goedere word erken wanneer die Groep produkte aan die klant gelewer het, die klant die produkte aanvaar het en verhaalbaarheid van die verwante debiteur redelik seker is. b) Verkope van dienste Verkope van dienste word in die rekenpligtige tydperk waarin die dienste gelewer word erken, deur verwysing na voltooiing van die spesifieke transaksie, geraam op die grondslag van die werklike diens gelewer in verhouding tot die totale dienste wat gelewer gaan word. c) Finansieringsinkomste Finansieringsinkomste word op 'n tydverhoudingsgrondslag volgens die effektiewe rentekoersmetode erken. Wanneer waardedaling ten opsigte van 'n debiteur plaasvind, verminder die Groep die drabedrag na die verhaalbare bedrag, synde die geraamde toekomstige kontantvloei teen die oorspronklike effektiewe rentekoers van die instrument te verdiskonteer en gaan hy voort om die diskonto as finansieringsinkomste te erken. Finansieringsinkomste op lenings ten opsigte waarvan waardedaling plaasgevind het, word erken deur die oorspronklike effektiewe rentekoers te gebruik. d) Dividendinkomste Dividendinkomste word erken wanneer die reg om betaling te ontvang vasgestel is FINANCIAL GUARANTEES (continued) initially valued at fair value. Subsequently it is measured at: i. the amount determined in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and ii. the amount initially recognised minus, if applicable, any cumulative amortisation recognised in accordance with IAS 18 Income INCOME RECOGNITION Income involves the fair value of the remuneration received or receivable for the sale of goods and services in the ordinary course of Group activities. Income is shown net of value-added tax and allowances and discounts. Income is recognised as follows: a) Sale of goods Sale of goods is recognised when the Group has supplied products to the customer, the customer has accepted the goods and recoverability of the debtor concerned is relatively certain. b) Sale of services Sales of services are recognised in the accounting period in which the services are rendered, by referring to completion of the specific transaction, estimated on the basis of the actual service rendered in relation to the total services to be rendered. c) Financing income Financing income is recognised on a time-ratio basis according to the effective interest rate method. When impairment occurs in respect of a debtor, the Group reduces the carrying amount to the recoverable amount, being the estimated future cash flow discounted against the original effective interest rate of the instrument, and proceeds to recognise the discount as financing income. Financing income on loans in respect of which impairment has taken place is recognised by using the original effective interest rate. d) Dividend income Dividend income is recognised when the right to receive payment has been established. 50

55 1.22 DIVIDENDE VERKLAAR Dividende verklaar aan die Groep se aandeelhouers word as 'n verpligting erken in die tydperk waarin die dividende deur die Direksie goedgekeur word VERSEKERING - RISIKOPREMIE OP GARS Die Groep hef 'n risikopremie op gars wat ontvang en gradeer word. Die premie word as 'n versekeringspremie bestempel aangesien die Groep wesenlike risiko's loop om 'n verlies te realiseer op die kontrak en aangesien daar 'n redelike moontlikheid bestaan van 'n beduidende variasie van uitkoms van die kontrak. Versekeringsinkomste word op die jaarlikse basis gereflekteer waarvolgens eise teen die verdiende gedeelte van premies soos volg erken word: Premies geskryf sluit in alle premies gekontrakteer in die huidige jaar plus die verskil tussen premies geskryf in die vorige tydperke en daardie premies erken. Verdiende premies is premies wat verband hou met die risiko gedurende die rekeningkundige periode. Dit sluit die onverdiende premies in van vorige periodes waar die risiko binne die huidige rekeningkundige periode val. Onverdiende premies verteenwoordig daardie premies geskryf gedurende die jaar wat verband hou met die onuitgelope gedeelte van die risiko op balansstaatdatum bereken op die basis van graan nog nie versend nie. Eise verteenwoordig werklike verliese gelei en voorsienings vir uitstaande eise, insluitende voorsienings vir verliese tot op balansstaatdatum nog nie gerapporteer en aanpassings aan voorsiening vir eise van vorige jare. Onuitgelope risiko-voorsiening word gemaak vir enige tekorte tussen die onverdiende premies en enige voorsiene verliese. Voorsiene verliese word bereken op gebeure voor balansstaatdatum. Risikofaktore onderliggend aan die nakoming van kwaliteitsvereistes in die kontrak met kopers mag tot die afkeur van die gars lei REHABILITASIEKOSTE Rehabilitasiekoste en verwagte opgelope laste, gebaseer op die Groep se raming van omgewings- en wetlike vereistes, is voorsien om die netto huidige waarde te toon van die huidige verwagte 1.22 DIVIDENDS DECLARED Dividends declared to the Group's shareholders are recognised as a liability in the period in which the dividends are approved by the Board INSURANCE - RISK PREMIUM BARLEY The Group charges a risk premium on barley received and graded. The premium is called an insurance premium as the Group runs a material risk of realising a loss on the contract and as there is a reasonable possibility of a significant variation in the outcome of the contract. Insurance income is reflected on the annual basis according to which claims against the earned portion of premiums are recognised as follows: Premiums written include all premiums contracted in the current year plus the difference between premiums written in previous periods and those premiums recognised. Earned premiums are premiums relating to the risk during the accounting period. They include the unearned premiums of previous periods where the risk falls in the current accounting period. Unearned premiums represent those premiums written during the year that relate to the unexpired portion of the risk on balance sheet date calculated on the basis of grain not yet dispatched. Claims represents actual losses suffered and provisions for outstanding claims, including provisions for losses until balance sheet date not yet reported and adjustments to provisions for claims of previous years. Unexpired risk is provided for in terms of any deficits between the unearned premiums and any expected losses. Expected losses are calculated based on events before balance sheet date. Risk factors underlying compliance with quality requirements in the contract with buyers may result in the rejection of the barley REHABILITATION COSTS Provision has been made for rehabilitation costs and expected accrued liabilities, based on the Group's estimate of environmental and legal requirements, to show the net current value of the current expected cost of repairing 51

56 1.24 REHABILITASIEKOSTE (vervolg) koste om die versteuring aan die omgewing soos op balansstaatdatum te herstel. Die koste voorsien word gekapitaliseer as deel van mynbates en ooreenkomstig gedepresieer. Jaarlikse verhogings in voorsienings word gedeel tussen finansieringskoste verwant aan die verandering in die netto huidige waarde van die voorsiening, inflasionêre verhogings in die voorsieningsraming en restourasiekoste verwant aan die addisionele omgewingsversteuring wat plaasgevind het. Die geraamde toekomstige rehabilitasielas is as waarborg verskaf deur Eerste Nasionale Bank aan die Departement van Minerale en Energie. Dit is moontlik dat die raming van die rehabilitasielas kan verander as 'n resultaat van veranderinge in regulasies of ramings van kostes ITEMS VAN 'N KAPITALE AARD Items van 'n kapitale aard wat in die Inkomstestaat openbaar word, word afsonderlik openbaar aangesien dit nie geag word deel van die Groep se handelsbedryfsaktiwiteite te wees nie. Ingesluit in items van 'n kapitale aard is kapitaalwinste en verliese gerealiseer op nie-bedryfsbates, waardestygings en/of waardedalings afgeskryf en/of teruggeskryf op nie-bedryfsbates. Items van 'n kapitale aard word van handelsbedryfsaktiwiteiteinkomste en uitgawes uitgesluit aangesien dit syfers verteenwoordig wat gebruikers se oordeel kan beïnvloed SEKONDÊRE BELASTING OP MAATSKAPPYE Suid-Afrikaanse inwoner-maatskappye is onderhewig aan 'n tweeledige belastingstelsel. Eerstens is belasting betaalbaar op belasbare inkomste en tweedens is belasting betaalbaar op uitgekeerde inkomstewinste. 'n Maatskappy moet SBM betaal op dividende verklaar of geagte dividende verklaar (soos gedefinieer in die Inkomstebelastingwet) aan sy aandeelhouers. SBM betaalbaar op dividende word erken as inkomstebelastinguitgawe in die inkomstestaat in die jaar waarin die maatskappy die betrokke dividende betaalbaar as aanspreeklikheid erken. Enige dividende ontvang in die betrokke dividendsiklus verminder die SBM betaalbaar. Indien die dividende verklaar die dividende ontvang oorskry, is SBM betaalbaar op die netto bedrag teen die toepaslike SBM-koers. Indien dividende ontvang die dividende verklaar oorskry, is daar geen SBM betaalbaar nie. Die bedrag waarmee die dividende ontvang die dividende verklaar oorskry, word oorgedra na die volgende dividendsiklus as 'n SBM-krediet. Uitgestelde belastingbates word erken op enige onaangewende SBM-krediete vir sover dit waarskynlik is dat die Groep 1.24 REHABILITATION COSTS (continued) the disturbance to the environment as at balance sheet date. The provision is capitalised as part of mining assets and depreciated accordingly. Annual increases in provisions are shared between financing costs related to the change in the net current value of the provision, inflationary increases in the estimated provision and restoration costs related to the additional environmental disturbance that took place. First National Bank provided the estimated future rehabilitation liability to the Department of Minerals and Energy as a guarantee. It is possible that the estimate of the rehabilitation liability could change as a result of changes in regulations or cost estimations ITEMS OF A CAPITAL NATURE Items of a capital nature disclosed in the Income Statement are disclosed separately as they are not deemed to form part of the Group's trade operations. Included in items of a capital nature are capital profits and losses realised on non-current assets, and increases and/or decreases in value written down and/or back on non-current assets. Items of a capital nature are excluded from trade operations' income and expenditure as they represent figures that could influence users' judgement SECONDARY TAX ON COMPANIES South African residential companies are subject to a twopronged tax system. Firstly, tax is payable on taxable income and secondly, tax is payable on distributed income profit. A company has to pay STC on dividends declared or deemed to have been declared (as defined in the Income Tax Act) to its shareholders. STC payable on dividends is recognised as a tax expense in the income statement in the year in which the company recognises the relevant dividends payable as a liability. Any dividends received in the relevant dividend cycle decreases the STC payable. If the dividends declared exceed the dividends received, STC is payable on the net amount at the applicable STC rate. If dividends received exceed the dividends declared, no STC is payable. The amount by which the dividends received exceed the dividends declared is carried over to the following dividend cycle as an STC credit. Deferred tax assets are recognised on any unutilised STC credits in so far as it is probable that the Group will 52

57 1.26 SEKONDÊRE BELASTING OP MAATSKAPPYE (vervolg) toekomstige dividende gaan verklaar waarteen die SBMkrediet aangewend kan word. 2 KRITIESE REKENINGKUNDIGE AANNAMES EN OORDEEL Ramings en aannames word voortdurend geëvalueer en is gebaseer op historiese ondervinding en ander faktore, insluitend verwagtinge van toekomstige gebeure wat redelik is onder die omstandighede. Die Groep maak ramings en aannames aangaande die toekoms. Die gevolglike rekeningkundige ramings mag moontlik nie, volgens definisie, ooreenstem met die werklike resultate nie. Aannames en skattings, wat 'n wesenlike risiko het om 'n wesenlike aansuiwering tot die drabedrag van bates en laste binne die volgende finansiële jaar tot gevolg te hê, word hieronder bespreek: 2.1 WAARDEDALING VAN DEBITEURE 'n Voorsiening vir waardedaling van handelsdebiteure word daargestel wanneer daar objektiewe bewyse is dat die Groep nie in staat sal wees om alle bedrae volgens die oorspronklike voorwaardes in te vorder nie. Die voorsieningsbedrag is die verskil tussen die bate se drabedrag en die huidige waarde van verwagte toekomstige kontantvloeie, verdiskonteer teen die effektiewe rentekoers. Bestuur oorweeg die volgende wanneer die beraming van die voorsiening, wat in die Inkomstestaat erken gaan word, gemaak word: Identifisering van spesifieke nie-presterende debiteure Die voorsiening vir individuele debiteure neem slegs die verskil tussen totale skuld minus sekuriteit en finansiële vermoë van debiteure in ag. Sekuriteit benodig is aanvanklik vasgestel as deel van die kredietverleningsbeleid en risikoprofiel van die debiteur. Hersiening van die verhaalgeskiedenis van sekuriteite Bestuur hersien die verhaalbaarheid van sekuriteite gebaseer op vorige ondervinding en mag die sekuriteite afwaarts aanpas. Die tekort sal lei tot 'n toename in die voorsiening benodig SECONDARY TAX ON COMPANIES (continued) declare future dividends against which the STC credit can be applied. 2 CRITICAL ACCOUNTING ASSUMPTIONS AND JUDGEMENTS Estimates and assumptions are continuously evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable in the circumstances. The Group makes estimates and assumptions regarding the future. The resultant accounting estimates may possibly, per definition, not agree with the actual results. Assumptions and estimates with a material risk of resulting in a significant adjustment to the carrying amount of assets and liabilities in the following financial year are discussed below: 2.1 IMPAIRMENT OF DEBTORS A provision for impairment of trade debtors is established when there is objective proof that the Group will not be able to collect all amounts on the original conditions. The provision amount is the difference between the carrying amount of the asset and the current value of expected future cash flows, discounted against the effective interest rate. Management considers the following when estimating the provision to be recognised in the Income Statement: Identification of specific non-performing debtors The provision for individual debtors only takes account of the difference between total debt minus security and the financial means of debtors. Security required is initially determined as part of the credit provision policy and risk profile of the debtor. Revision of the recovery history of securities Management reviews the life-span and residual value of assets on an annual basis, and adjustments are made as appropriate. Management uses their experience, judgement and assumptions in the process of determining life-span and residual values. 53

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59 2.2 LEWENSDURE EN RESWAARDES VAN VASTE BATES Bestuur hersien die lewensduur en reswaarde van bates op 'n jaarlikse grondslag en aanpassings word gemaak soos toepaslik. Bestuur gebruik hul ervaring, oordeel en aannames in die proses om lewensdure en reswaardes te bepaal. 2.3 WAARDERING VAN ONGENOTEERDE BELEGGINGS Wesenlike ongekwoteerde beleggings word bereken op grond van die verdiskonteerde kontantvloeimetode deur gebruik te maak van die mark-rentekoers en 'n risikopremie spesifiek van toepassing op die ongekwoteerde belegging. 2.4 VOORSIENING VAN VEROUDERDE VOORRAAD Die voorsiening van verouderde voorraad word deurlopend Bestuur van die onderskeie segmente van voorraad in die Groep, op 'n omsetsnelheid-metode bereken en dienooreenkomstig aangepas. Implemente word individueel deur Bestuur oorweeg vir voorsiening van verouderde voorraad. 2.5 NA-AFTREDE MEDIESE VOORDEEL Verwys na aantekening 21 vir detail van berekeninge en aannames. 2.6 WAARDEDALING VAN SILO'S Bestuur doen 'n waardedalingstoets op die silo's en silotoerusting van die Groep ten einde die verhaalbare waarde van die silo's as 'n afsonderlike kontantgenererende eenheid te bepaal. Dit kan aanleiding gee tot 'n waarde-aanpassing op drawaardes soos geopenbaar in aantekening 4. Die volgende aannames is gebruik tydens die berekening: Verdiskonteerde kontantvloei-metode is gebruik om waardasie te doen Aangepaste GSI-standaardkoste per ton is gebruik as basis vir kostes 6 jaar gemiddelde tonnemaat is gebruik as basis vir volumes 50% van koring op dagtarief en dagtarief-opberging duur gemiddeld 50 dae (2007: 45 dae) Verdiskonteringskoers 17,64% (2007: 16,69%) 2.7 ONBEHOORLIKE AANWENDING VAN SURPLUS OP WERKNEMERVOORDEEL PENSIOENFONDS Die Groep se beleid is om alle winste en verliese, soos dit ontstaan in die Inkomstestaat, te erken. Die oordeel van die 2.2 LIFE-SPAN AND RESIDUAL VALUE OF FIXED ASSETS Management reviews the life-span and residual value of assets on an annual basis, and adjustments are made as appropriate. Management uses their experience, judgement and assumptions in the process of determining life-span and residual value. 2.3 VALUATION OF UNLISTED INVESTMENTS Material unquoted investments are calculated based on the discounted cash-flow method by using the market interest rate and a risk premium specifically applicable to the unquoted investment. 2.4 PROVISION FOR OBSOLETE STOCK The provision for obsolete stock is continuously calculated by Management on the various segments of stock in the Group according to a rate-of-turnover method, and adjusted accordingly. Implements are considered individually by Management for provision of obsolete stock. 2.5 POST-RETIREMENT MEDICAL BENEFITS Refer to note 21 for details regarding calculations and assumptions. 2.6 IMPAIRMENT OF SILOS Management performs an impairment test on the silos and silo equipment of the Group in order to determine the recoverable value of the silos as a separate cash-generating unit. This may result in a value adjustment on carrying values as disclosed in note 4. The following assumptions were used during the calculation: Discounted cash-flow method was used to perform the valuation An adjusted GSI-standard cost per ton was used as a basis for costs 6 year-average tonage was used as a basis for volumes 50% of wheat on daily tariff and daily-tariff storage lasts an average of 50 days (2007: 45 days) Discount rate 17,64% (2007: 16,69%) 2.7 IMPROPER UTILISATION OF SURPLUS ON EMPLOYEE BENEFIT PENSION FUND The Group's policy is to recognise all profits and losses as they arise in the Income Statement. Judgement regarding 55

60 2.7 ONBEHOORLIKE AANWENDING VAN SURPLUS OP WERKNEMERVOORDEEL PENSIOENFONDS (vervolg) toedeling van enige surplusse en tekorte berus by die Raad van Trustees, soos op daardie tydstip aangestel. Die volgende voordeelverbetering wat aan bestuurslede toegeken is wat nie aan ander lede toegeken is nie, is gerapporteer: Tydperk 1 Augustus 1982 tot 1 Junie 1986: Volgens die waarderingsverslag van 1 Augustus 1982 was daar geen onderskeid tussen die voordele waarop bestuurslede geregtig was teenoor die voordele waarop ander lede geregtig was nie. Volgens die gekonsolideerde Reëls van die Fonds soos op 1 Junie 1986 is die volgende wysigings sedert 1982 aangebring: Die normale aftree-ouderdom van 'n Hoofbestuurder is verlaag na 60 en van 'n Assistent-hoofbestuurder na 63. Die normale aftree-ouderdom vir ander manlike lede was 65 en vir ander vroulike lede was 60. Die pensioengewende diens vir 'n Hoofbestuurder is met 5 jaar vermeerder en vir 'n Assistent-hoofbestuurder met 2 jaar. Die pensioengewende salaris van 'n Hoofbestuurder en 'n Assistent-hoofbestuurder is verander na "die gemiddelde eindsalaris oor 'n tydperk van twaalf maande". Vir ander lede is die definisie "die hoogste gemiddelde jaarlikse salaris wat die lid verdien het gedurende enige tydperk van drie agtereenvolgende jare". Al drie bogenoemde wysigings sou 'n verhoging in die verstreke diensverpligting van 'n Hoofbestuurder en Assistent-hoofbestuurder veroorsaak het. Die surplus in die Fonds het dienooreenkomstig verminder, in die veronderstelling dat 'n ooreenstemmende bedrag nie in die Fonds inbetaal is om dit te finansier nie. Die addisionele verstreke diensverpligting kwalifiseer dus as onbehoorlike aanwending van surplus. 2.8 RISIKOPREMIE-HEFFING Die risikopremie-inkomste word gelykmatig erken oor die termyn waaroor die gars gelewer word. 2.9 MYNLISENSIE Die mynlisensie moet in 2009 hernu word. Bestuur is van mening dat die aansoek om hernuwing van die lisensie suksesvol sal wees. Die myn se bates is dus oor die bates 2.7 IMPROPER UTILISATION OF SURPLUS ON EMPLOYEE BENEFIT PENSION FUND (continued) the apportionment of any surpluses and deficits lies with the Board of Trustees, as appointed at that time. The following benefit improvement allotted to members of Management and not to other members was reported: Period 1 August 1982 to 1 June 1986: According to the valuation report of 1 August 1982 there was no distinction between the benefits which members of management were entitled to as against the benefits which other members were entitled to. According to the consolidated Rules of the Fund as at 1 June 1986 the following amendments had been made since 1982: The normal retirement age of a General Manager was decreased to 60 and that of an Assistant General Manager to 63. The normal retirement age for other male members was 65 and for other female members, 60. The pension-earning service for a General Manager was increased by 5 years and that for an Assistant General Manager by 2 years. The pension-earning salary of a General Manager and an Assistant General Manager was changed to "the average final salary over a period of twelve months". For other members the definition is "the highest average annual salary earned by the member during any period of three consecutive years". All three of the abovementioned amendments would have resulted in an increase in the expired service obligation of a General Manager and an Assistant General Manager. The surplus in the Fund has declined accordingly, under the assumption that a corresponding amount was not paid into the Fund to finance this. The additional expired service obligation thus qualifies as an improper utilisation of surplus. 2.8 RISK PREMIUM CHARGE The risk premium income is recognised equably over the term over which the barley is supplied. 2.9 MINING LICENSE The mining license is due for renewal in Management is of the opinion that the application for renewal of the 56

61 2.9 MYNLISENSIE (vervolg) se verwagte nuttige lewensduur gedepresieer, en nie oor die oorblywende lewensduur van die lisensie nie WAARBORGE Bestuur hersien jaarliks die billike waarde van die waarborge wat deur die Groep verskaf is en aanpassings word gemaak soos toepaslik. Bestuur gebruik hul ervaring, oordeel en aannames in die proses om die billike waarde van die waarborge te bepaal. Bestuur het 'n Nul Rand-waarde geplaas op die billike waarde van die waarborge LEENKOSTE-KAPITALISERING Die Groep het besluit om sy rekeningkundige beleid te verander om voorsiening te maak vir die kapitalisering van leenkoste. Die Groep beskou dat daar minstens 'n drie maande-periode op graanprodukte moet verloop voordat hierdie produkte in 'n verkoopbare toestand is, bv. op gars is daar 'n dormansieperiode voor ontkieming nodig en by saad is 'n dormansieperiode, skoonmaak en chemiese behandelingproses. Die Groep aanvaar voorts dat op ander bates 'n tydperk van ses maande moet verloop voordat leenkoste gekapitaliseer gaan word. 3 FINANSIËLE RISIKOBESTUUR 3.1 FINANSIËLE RISIKOFAKTORE Die Groep se aktiwiteite stel hom bloot aan 'n verskeidenheid van finansiële risiko's: (a) markrisiko (insluitende prysrisiko en valutarisiko); (b) kontantvloei- en billike waarde rentekoersrisiko; (c) kredietrisiko; en (d) likiditeitsrisiko Die Groep se oorkoepelende risikobestuursprogram fokus op die onvoorspelbaarheid van finansiële markte en poog om potensiële ongunstige uitwerkings op die Groep se finansiële prestasie tot die minimum te beperk. Bestuur is verantwoordelik vir die Groep se risikobestuur en identifiseer, evalueer en verskans finansiële risiko's waar nodig in noue samewerking met die Groep se bedryfseenhede. Die Direksie verskaf beginsels vir oorkoepelende risikobestuur wat spesifieke areas, soos rentekoersrisiko, kredietrisiko, die gebruik van afgeleide finansiële instrumente en nie-afgeleide finansiële instrumente en die belegging van surpluslikiditeit dek. 2.9 MINING LICENSE (continued) license will be successful. The mine's assets were accordingly depreciated over the expected useful lives of the assets, and not over the remaining life of the license GUARANTEES Management annually reviews the fair value of the guarantees provided by the Group, and adjustments are made as appropriate. Management uses their experience, judgement and assumptions in the process of determining the fair value of the guarantees. Management placed a Zero Rand value on the fair value of the guarantees CAPITALISATION OF BORROWING COST The Group has elected to change its accounting policy to provide for the capitalisation of borrowing costs. The Group is of the opinion that at least a three-month period has to lapse on grain products before these products are in a marketable condition, e.g. on barley a dormancy period before germination is required and on seed, a dormancy period, cleaning and chemical treatment process. The Group further assumes that on other assets a period of six months has to lapse before borrowing costs will be capitalised. 3 FINANCIAL RISK MANAGEMENT 3.1 FINANCIAL RISK FACTORS The Group's activities expose it to various financial risks: (a) market risk (including price risk and currency risk); (b) cash-flow and fair value interest rate risk; (c) credit risk; and (d) liquidity risk The Group's overall risk management programme focuses on the unpredictability of financial markets and attempts to limit potentially unfavourable effects on the Group's financial performance to the minimum. Management is responsible for the Group's risk management, and identify, evaluate and hedge financial risks where necessary, in close cooperation with the Group's operating units. The Board provides principles for overall risk management covering specific areas such as interest rate risk, credit risk, the use of derivative financial instruments and non-derivative financial instruments and the investment of surplus liquidity. 57

62 3.1 FINANSIËLE RISIKOFAKTORE (vervolg) (a) Markrisiko (insluitende prysrisiko en valutarisiko) (i) Buitelandse wisselkoersrisiko n Filiaal voer produkte in vanaf die buiteland en is blootgestel aan buitelandse wisselkoersrisiko wat ontstaan uit verskeie valutablootstellings, hoofsaaklik die VSA dollar, Britse pond en Euro. Buitelandse wisselkoersrisiko ontstaan wanneer invoere van produkte teen 'n ander wisselkoers realiseer as waarteen die bestelling plaasgevind het vir produkte wat reeds teen 'n ooreengekome verkoopprys gekontrakteer is. Die filiaal se funksionele geldeenheid is ZAR en Bestuur het 'n beleid opgestel wat vereis dat die filiaal se buitelandse wisselkoersrisiko bestuur word. Om die buitelandse wisselkoersrisiko te bestuur gebruik die filiaal wisselkoersverskansingsinstrumente wat aangegaan word wanneer bepaalde wisselkoersvlakke bereik word. Die wisselkoersverskansingsinstrumente word met 'n finansiële instelling gesluit. (ii) Prysrisiko Die Groep is nie blootgestel aan kommoditeite-prysrisiko nie. Die Groep is blootgestel aan ekwiteitsekuriteite-prysrisiko as gevolg van beleggings wat deur die Groep gehou word en op die Balansstaat as beskikbaar-vir-verkoop en niebedryfsbates gehou vir verkoop geklassifiseer word. Ekwiteit sal toeneem/ afneem as gevolg van enige winste/verliese op ekwiteiteitsekuriteite wat geklassifiseer word as beskikbaarvir-verkoopbeleggings en nie-bedryfsbates gehou vir verkoop. Op jaareinde, indien die ekwiteitsekuriteite-prys met R1 versterk/ verswak het, met al die ander veranderlikes wat konstant gehou word, sou die volgende billike waardeaanpassing plaasgevind het: Ekwiteitsekuriteit R`000 R`000 Pioneer Foods Beperk 16,747 16,747 Ander ,749 16,749 (b) Kontantvloei- en billike waarde-rentekoersrisiko Die Groep se inkomste- en bedryfskontantvloei is tot 'n mindere mate afhanklik van veranderings in markrentekoerse. Die rentekoers van huurkoopkontrakte waar die Groep die verskaffer ten opsigte van huurkoopbates is, word by die ontstaan van die huurkoopkontrak aanvanklik vasgestel en word aangepas met heersendemarkrentekoerse. 3.1 FINANCIAL RISK FACTORS (continued) (a) Market risk (including price risk and currency risk) (i) Foreign exchange rate risk A subsidiary imports products from abroad and is exposed to a foreign exchange rate risk arising from various currency exposures, mainly the US dollar, British pound and Euro. Foreign exchange rate risk arises when imports of products realise at another exchange rate as the one at which the order took place for products which have already been contracted at an agreed price. The subsidiary's functional currency is ZAR and Management has prepared a policy requiring that the subsidiary's foreign exchange risk be managed. To manage the foreign exchange rate risk, the subsidiary makes use of exchange rate hedging instruments which commence when predetermined exchange rate levels are reached. The exchange rate hedging instruments are concluded with a financial institution. (ii) Price risk The Group is not exposed to commodity price risks. The Group is exposed to equity securities price risk due to investments held by the Group and classified on the Balance Sheet as available-for-sale and non-current assets held for sale. Equity will increase/decrease as a result of any profits/losses on equity securities classified as availablefor-sale investments and non-current assets held for sale. At year-end, should the equity securities price have strengthened/weakened by R1, with all other variables being constant, the following fair value adjustment would have taken place: Equity secruity R`000 R`000 Pioneer Foods Limited 16,747 16,747 Other ,747 16,747 (b) Cash-flow and fair value interest rate risk The Group's income and operational cash flow depend to a lesser extent on changes in market interest rates. The interest rates of hire-purchase contracts where the Group is the supplier in respect of hire-purchase assets are determined upon commencement of the hire-purchase contract and adjusted to current market interest rates. 58

63 3.1 FINANSIËLE RISIKO-FAKTORE (vervolg) Die Groep se kontantvloei-rentekoersrisiko ontstaan uit langtermyn- en korttermynlenings. Lenings wat teen veranderlike koerse toegestaan word, stel die Groep bloot aan kontantvloei-rentekoersrisiko. Op jaareinde, indien die rentekoerse met 100 basispunte versterk/verswak het teenoor die onderskeie geldeenhede met al die ander veranderlikes wat konstant gehou word, sou die na-belaste wins vir die jaar R294,779 (2007: R231,018) hoër/laer gewees het, hoofsaaklik as gevolg van veranderlike rentekoersveranderinge. (c) Kredietrisiko Die Groep se kredietrisiko ontstaan van kredietblootstelling aan landbou, groothandel- en kleinhandel-debiteure, kontant en kontantekwivalente en deposito's by banke. Deurlopende kredietevaluerings word van die finansiële posisies, vorige ondervindings en ander faktore van sodanige debiteure individueel uitgevoer, asook die vestiging van geskikte sekuriteite, ooreenkomstig 'n formele kredietbeleid wat deurlopend aangepas word om veranderings in risiko's in ag te neem. Die benutting van die kredietfasiliteite word deurlopend gemonitor. Die Groep se kontant en kontantekwivalente word geplaas by hoë krediet-kwaliteit finansiële instellings. 3.1 FINANCIAL RISK FACTORS (continued) The Group's cash-flow interest rate risk arises from long-term and short-term loans. Loans granted at variable rates expose the Group to cash-flow interest rate risk. At year-end, should the interest rates have strengthened/ weakened by 100 basis points against the respective currencies with all other variables being constant, the after-tax profit for the year would have been R294,779 (2007: R231,018) higher/lower, primarily due to variable interest rate changes. (c) Credit risk The Group's credit risk arises from credit exposure to agriculture, wholesale and retail debtors, cash and cash equivalents and deposits with banks. Continuous credit evaluations are performed individually of the financial positions, previous experience and other factors of such debtors as well as the vesting of suitable securities in accordance with a formal credit policy applied throughout to take account of changes in risks. The Group's cash and cash equivalents are placed at high credit quality financial institutions. Kredietfasiliteit Saldo Credit facility Balance R 000 R Februarie February 2008 Kontant en kontantekwivalente: ABSA 37,000 78,571 Cash and cash equivalents: ABSA 37,000 78, Februarie February 2007 Kontant en kontantekwivalente: ABSA 30,000 8,816 Cash and cash equivalents: ABSA 30,000 8,816 (d) Likiditeitsrisiko Omsigtige likiditeitsrisikobestuur impliseer die instandhouding van toereikende kontant en bemarkbare sekuriteite, die beskikbaarheid van befondsing deur middel van 'n toereikende hoeveelheid van goedgekeurde kredietfasiliteite en die vermoë om markposisies volkome te ontbondel. As gevolg van die dinamiese aard van die onderliggende besighede, beoog Bestuur om befondsingsaanpasbaarheid te handhaaf deur goedgekeurde kredietlyne beskikbaar te hou. (d) Liquidity risk Prudent liquidity risk management implies the maintenance of sufficient cash and marketable securities, the availability of funding by means of a sufficient number of approved credit facilities and the ability to fully unbundle market positions. As a result of the dynamic nature of the underlying businesses, Management intends to maintain funding adjustability by keeping available approved lines of credit. 59

64 3.1 FINANSIËLE RISIKOFAKTORE (vervolg) 3.1 FINANCIAL RISK FACTORS (continued) Binne Tussen Tussen 2 1 jaar 1 en 2 jaar en 5 jaar Totaal Within Between Between 1 year 1 & 2 years 2 & 5 years Total R 000 R 000 R 000 R 000 Aflossingskedule: Amortisation schedule: 29 Februarie February 2008 Langtermynlenings - 48,999 62, ,776 Long-term loans Korttermynlenings 428, ,896 Short-term loans Handels- en ander krediteure 139, ,644 Trade and other creditors 568,540 88,907 22, , Februarie February 2007 Langtermynlenings ,942 23,942 Long-term loans Korttermynlenings 283, ,176 Short-term loans Handels- en ander krediteure 65, ,950 Trade and other creditors 349,126 21,466 23, ,068 Hierdie bedrae sal gefinansier word uit kontant en kontantekwivalente van R78,570,952 (2007: R8,815,684) asook goedgekeurde fasiliteite van R587,000,000 (2007: R497,442,000) waarvan R256,226,777 (2007: R260,231,226) beskikbaar is. 3.2 KAPITAAL-RISIKOBESTUUR Die Groep se doelwitte wanneer hy kapitaal bestuur is om te verseker dat die Groep voortbestaan as 'n lopende saak om oor die vermoë te beskik om opbrengste aan aandeelhouers en ander belanghebbendes te voorsien en om 'n optimale kapitaalstruktuur te onderhou wat die koste van kapitaal verlaag. Om oor die vermoë te beskik om die kapitaalstruktuur te onderhou of aan te pas, mag die Groep die waarde van die dividende wat aan aandeelhouers betaal word aanpas, nuwe aandele uitreik of bates verkoop om skuld te delg. Die eie kapitaal-verhoudings soos op 29 Februarie was soos volg: These amounts will be financed from cash and cash equivalents of R78,570,952 (2007: R8,815,684) as well as approved facilities of R587,000,000 (R497,442,000) of which R256,226,777 (2007: R260,231,226) is available. 3.2 CAPITAL RISK MANAGEMENT The Group's objectives when managing capital is to ensure that the Group continues to exist as a going concern to be able to provide returns to shareholders and other stakeholders and to maintain an optimal capital structure which decreases the cost of capital. To be able to maintain or adjust the capital structure, the Group may adjust the value of the dividends paid to shareholders, issue new shares or sell assets to settle debts. The own capital ratios as at 29 February were as follows: GROEP MAATSKAPPY GROUP COMPANY R 000 R 000 R 000 R 000 Totale kapitaal en reserwes 785, , , ,322 Total capital and reserves Totale bates 1,517,093 1,239, , ,322 Total assets l Eie kapitaal-verhouding 52% 66% 100% 100% Own capital ratio 3.3 BILLIKE WAARDE-RAMING Die billike waarde van finansiële instrumente wat in aktiewe markte verhandel word, soos beursverhandelde afgeleide instrumente en verhandelings- en beskikbaar-vir-verkoop- 3.3 FAIR VALUE ESTIMATION The fair value of financial instruments traded in active markets, such as exchange-traded derivative instruments and trade and available-for-sale securities, are based on 60

65 3.3 BILLIKE WAARDE-RAMING (vervolg) sekuriteite, word teen gekwoteerde markpryse op die balansstaatdatum gebaseer. Die gekwoteerde markprys wat gebruik word vir finansiële bates wat deur die Groep gehou word, is die heersende aanbodprys. Die gepaste gekwoteerde markprys vir finansiële laste is die heersende vraprys. Die billike waarde van finansiële instrumente en -sekuriteite wat nie verhandel word in aktiewe markte nie word bepaal deur waardasie-tegnieke te gebruik. Die Groep gebruik sy oordeel om 'n seleksie te maak van verskillende metodes en maak hoofsaaklik aannames wat gebaseer word op markomstandighede wat heers op die balansstaatdatum. Ander tegnieke, soos geraamde verdiskonteerde kontantvloei, word gebruik om billike waarde te bepaal vir beskikbaar-vir-verkoop finansiële bates wat nie verhandel word in aktiewe markte nie. Daar word veronderstel dat die nominale waarde min geraamde waarde-aanpassings van debiteure en krediteure die billike waarde reflekteer. Die billike waarde van finansiële laste word, met die oog op openbaarmaking, geraam deur die toekomstige kontraktuele kontantvloei teen die heersende markrentekoers, wat vir soortgelyke finansiële instrumente vir die Groep beskikbaar is, te verdiskonteer. 3.3 FAIR VALUE ESTIMATION (continued) quoted market prices on balance sheet date. The quoted market price used for financial assets held by the Group is the current offer price. The applicable quoted market price for financial liabilities is the current asking price. The fair value of financial instruments not traded in active markets is determined by using valuation techniques. The Group uses its judgement to select various methods and mainly makes assumptions based on market conditions prevailing on balance sheet date. Other techniques, such as estimated discounted cash flow, are used to determine fair value for available-forsale financial assets that are not traded in active markets. It is assumed that the nominal value less estimated value adjustments of debtors and creditors reflect their fair values. The fair value of financial liabilities is estimated, with a disclosure in mind, by discounting the future contractual cash flows at the current market interest rate available to the Group for similar financial instruments. 4 EIENDOM, AANLEG EN TOERUSTING 4 PROPERTY, PLANT AND EQUIPMENT Grond en Masjinerie, geboue motorvoertuie, Totaal toerusting Land and Machinery, Buildings vehicles and Total equipment R 000 R 000 R Op 1 Maart 2006 On 1 March 2006 Kosprys 60,893) 112,142) 173,034) Cost price Opgehoopte waardevermindering (8,740) (47,114) (55,854) Accumulated depreciation Opgehoopte waardedaling (2,748) (1,857) (4,605) Accumulated impairment Drawaarde 49,405) 63,170) 112,575) Carrying amount Tydperk geëindig 28 Februarie 2007 Period ended 28 February 2007 Openingsdrawaardes 49,405) 63,170) 112,575) Opening carrying amount Toevoegings 10,701) 28,180) 38,881) Additions Leenkoste gekapitaliseer -) 1,164) 1,164) Capitalisation of borrowing cost Herallokasie 484) (484) -) Reallocation Vervreemdings (1,756) (2,153) (3,909) Disposals Waardevermindering (1,391) (7,202) (8,593) Depreciation Waardestyging 668) 446) 1,114) Reversal of impairment Sluitingsdrawaarde 58,112) 83,121) 141,233) Closing carrying amount 61

66 4 EIENDOM, AANLEG EN TOERUSTING (vervolg) 4 PROPERTY, PLANT AND EQUIPMENT Grond en Masjinerie, (continued) geboue motorvoertuie, Totaal toerusting Land and Machinery, Buildings vehicles and Total equipment R 000 R 000 R 000 Op 28 Februarie 2007 On 28 February 2007 Kosprys 70,461) 138,367) 208,827) Cost price Opgehoopte waardevermindering (10,269) (53,834) (64,103) Accumulated depreciation Opgehoopte waardedaling (2,080) (1,411) (3,491) Accumulated impairment Drawaarde 58,112) 83,121) 141,233) Carrying amount Openingsdrawaardes 58,112) 83,121) 141,233) Opening carrying amount Toevoegings 3,619) 21,363) 24,982) Additions Leenkoste gekapitaliseer -) 1,230) 1,230) Capitalisation of borrowing cost Besigheidsamevoeging (aantekening 42) 17,066) 2,759) 19,824) Business combination (note 42) Herallokasie (1,050) -) (1,050) Reallocation Vervreemdings -) (189) (189) Disposals Waardevermindering (1,825) (9,075) (10,900) Depreciation Waardestyging 648) 432) 1,081) Reversal of impairment Sluitingsdrawaarde 76,570) 99,641) 176,211) Closing carrying value Op 28 Februarie 2007 On 28 February 2007 Kosprys 90,095) 157,060) 247,155) Cost price Opgehoopte waardevermindering (12,094) (56,440) (68,534) Accumulated depreciation Opgehoopte waardedaling (1,431) (979) (2,410) Accumulated impairment Drawaarde 76,570) 99,641) 176,211) Carrying amount Aanleg en toerusting met 'n boekwaarde van R54,744,198 (2007: R47,574,590) dien as sekuriteit vir die afbetalingsverkoopsooreenkomste (aantekening 22). Die grond en geboue met 'n boekwaarde van R16,916,000 dien as sekuriteit vir verbandlening vanaf ABSA Bank (aantekening 22). Daar is 'n verband van R5,000,000 oor die grond met 'n boekwaarde van R704,514 geregistreer ten gunste van FirstRand Bank Beperk. Die verband dien as sekuriteit vir die afbetalingsverkoopsooreenkomste (aantekening 22). Die registers met volledige besonderhede van grond en geboue is vir insae deur aandeelhouers of hul gevolmagtigdes beskikbaar by die geregistreerde kantore van die onderskeie maatskappye. Leenkoste gekapitaliseer is toeskryfbaar aan afbetalingverkoopsooreenkomste spesifiek aangegaan ten opsigte van kwalifiserende bates. Die verhaalbare bedrag van die kontant-genererende eenhede word bereken gebaseer op waarde-in-gebruik. Vir hierdie berekeninge word gebruik gemaak van huidige resultate (verwys Plant and equipment with a book value of R54,744,198 (2007: R47,574,590) serve as security for the instalment sale agreement (note 22). The land and buildings with a book value of R16,916,000 serve as security for mortgage bond from ABSA Bank (note 22). There is a mortgage of R5,000,000 held over the land with a book value of R704,514 registered in favour of FirstRand Bank Limited. The mortgage serves as security for the instalment sale agreements (note 22). The registers with full particulars of land and buildings are available for inspection by shareholders or their authorised agents at the registered offices of the respective companies. Borrowing cost capitalised is attributable to instalment sale agreements specifically concluded in respect of qualifying assets. The recoverable amount of the cash-generating units is calculated based on value-in-use. For these calculations current results are used (refer note 2.6). Movements in 62

67 4 EIENDOM, AANLEG EN TOERUSTING (vervolg) 4 PROPERTY, PLANT AND EQUIPMENT (continued) aantekening 2.6). Beweging in waardestygings/-dalings word by items van 'n kapitale aard in die inkomstestaat ingesluit. rises in value/impairments are included with items of a capital nature in the Income Statement. 5 BELEGGINGSEIENDOM INVESTMENT PROPERTY R 000 R Kosprys 8,035) 10,617) Cost price Opgehoopte waardevermindering (660) (1,132) Accumulated depreciation Drawaarde 7,376) 9,485) Carrying amount Openingsdrawaardes 7,376) 9,485) Opening carrying amount Toevoegings -) -) Additions Herallokasie 1,050) -) Reallocation Vervreemdings (1,111) (1,957) Disposals Waardevermindering (32) (152) Depreciation Sluitingsdrawaarde 7,283) 7,376) Closing carrying amount Op 29 Februarie 2008 On 29 February 2008 Kosprys 7,860) 8,035) Cost price Opgehoopte waardevermindering (577) (660) Accumulated depreciation Drawaarde 7,283) 7,376) Carrying amount Bestuur ag die billike waarde van beleggingseiendom R8,224,632 op 29 Februarie 2008 (2007: R10,047,187) te wees. Die inkomste verdien uit beleggingseiendom beloop R711,121 (2007: R1,391,209) vir die jaar. Direkte bedryfsuitgawes opgeloop deur beleggingseiendom wat huurinkomste verdien beloop R1,030,176 (2007: R757,475). Die registers met volledige besonderhede van grond en geboue is vir insae deur aandeelhouers of hul gevolmagtigdes beskikbaar by die geregistreerde kantore van die onderskeie maatskappye. Management deems the fair value of investment property to be R8,224,632 on 29 February 2008 (2007: R10,047,187). The income earned from investment property amounts to R711,121 (2007: R1,391,209) for the year. Direct operating expenditure accumulated by investment property earning rental income amounts to R1,030,176 (2007: R757,475). The registers with full particulars of land and buildings are available for inspection by shareholders or their authorised agents at the registered offices of the respective companies. 63

68 6 ONTASBARE BATES 6 INTANGIBLE ASSETS Kliënte- Klandisie- Handelsmerke verhoudinge waarde & Mineraalregte Client Trademarks & Relations Goodwill Mineral rights R 000 R 000 R Op 1 Maart 2007 On 1 March 2007 Koste 16,600) 15,229) 38,645) Cost Opgelope amortisasie en waardedalig (553) -) (540) Accumulated amortisation and impairment Netto boekwaarde 16,047) 15,229) 38,105) Net book value Openingsaldo netto boekwaarde 1 Maart ,047) 15,229) 38,105) Opening balance net book value 1 March 2007 Toevoegings -) -) -) Additions Amortisasie (830) -) (768) Amortisation Sluitings netto boekwaarde 15,217) 15,229) 37,337) Closing net book value Produkontwikkeling Sagte- waarde Totaal 2007 Product development Software Total 2007 Op 1 Maart 2007 R 000 R 000 R 000 On 1 March 2007 Koste -) 1,799) 72,272) Cost Opgelope amortisasie en waardedalig -) (1,252) (2,345) Accumulated amortisation and impairment Netto boekwaarde -) 546) 69,927) Net book value Openingsaldo netto boekwaarde 1 Maart ) 546) 69,927) Opening balance net book value 1 March 2007 Toevoegings -) 303) 303) Additions Amortisasie -) (133) (1,732) Amortisation Sluitings netto boekwaarde -) 716) 68,498) Closing net book value Kliënte- Klandisie- Handelsmerke verhoudinge waarde & Mineraalregte Client Trademarks & Relations Goodwill Mineral rights R 000 R 000 R 000 Op 28 Februarie 2007 On 28 February 2007 Koste 16,600) 15,229) 38,645) Cost Opgelope amortisasie en waardedalig (1,383) -) (1,308) Accumulated amortisation and impairment Netto boekwaarde 15,217) 15,229) 37,337) Net book value Openingsaldo netto boekwaarde 1 Maart ,217) 15,229) 37,337) Opening balance net book value 1 March 2007 Toevoegings -) -) -) Additions Besigheidsamevoeging (aantekening 42) 6,784) 35,386) 10,381) Business combination (note 42) Amortisasie (943) -) (983) Amortisation Sluitings netto boekwaarde 21,057) 50,614) 46,734) Closing net book value Op 29 Februarie 2008 On 29 February 2008 Koste 23,384) 50,614) 49,025) Cost Opgelope amortisasie en waardedaling (2,326) -) (2,291) Accumulated amortisation and impairment Netto boekwaarde 21,057) 50,614) 46,734) Net book value 64

69 diensgerig 65

70 6 ONTASBARE BATES (vervolg) Produk- Sagte- 6 INTANGIBLE ASSETS (continued) ontwikkeling waarde Totaal Product Softdevelopment ware Total R 000 R 000 R 000 Op 28 Februarie 2007 On 28 February 2007 Koste - 2,102 72,576 Cost Opgelope amortisasie en waardedaling - (1,386) (4,077) Accumulated amortisation and impairment Netto boekwaarde ,498 Net book value Openingsaldo netto boekwaarde - 1 Maart ,498 Opening balance net book value - 1 March 2007 Toevoegings Additions Besigheidsamevoeging (aantekening 42) ,550 Business combination (note 42) Amortisasie (62) (191) (2,179) Amortisation Sluitings netto boekwaarde ,604 Closing net book value Op 29 Februarie 2008 On 29 February 2008 Koste 621 2, ,861 Costs Opgelope amortisasie en waardedaling (62) (1,577) (6,256) Accumulated amortisation and impairment Netto boekwaarde ,604 Net book value Amortisasie word afgeskryf na die Inkomstestaat en word ingesluit onder ander bedryfsuitgawes en administrasiekostes. Die ontasbare bate vir produkontwikkelingskoste bestaan uit kostes wat aangegaan is in die huidige jaar ten opsigte van Promeal (Edms) Bpk vir alle ontwikkelling van n nuwe lyn produkte en sluit in alle kostes wat aangegaan is met die ontwikkelling van resepte en ook die toetsing van die nuwe produkte. Alle ontwikkelingskoste spruit voor uit interne ontwikkeling. Kliënteverhoudinge en handelsmerke van Boltfast (Edms) Bpk en CAM Motors (Edms) Bpk is in die 2007/2008 jaar waardeer deur n onafhanklike buite-party. Kliënteverhoudinge en handelsmerke van Promeal (Edms) Bpk is in die 2006/2007 jaar waardeer deur n onafhanklike buite-party. Die mineraalregte is in 2006 deur Bestuur bereken, nadat n onafhanklike derde party se waardasie van die kalkmyn as basis gebruik is en die nodige wysigings ten opsigte van die bates se billike waardes aangebring is. Amortisation is written off to the Income Statement and included under other operating expenditure. The intangible asset for product development costs consists of costs incurred in the current year in respect of Promeal (Pty) Ltd for all development of a new line of products and includes all costs incurred in developing recipes and testing the new products. All development costs arose from internal development. Client relations and trademarks of Boltfast (Pty) Ltd and CAM Motors (Pty) Ltd were valued in the 2007/2008 year by an independent outside party. Client relations and trademarks of Promeal (Pty) Ltd were valued in the 2006/2007 year by an independent outside party. The mineral rights were calculated by Management in 2006, after using an independent third party s valuation of the lime mine as basis and effecting the necessary adjustments in respect of the fair values of the assets. 66

71 6 ONTASBARE BATES (vervolg) Promeal Promeal Bontebok 6 INTANGIBLE ASSETS (continued) Handels- Kliënte- Mineraalmerke verhoudinge regte Die waardasie-parameters gebruik is: Trademarks Client Mineral rights The valuation parameters used are: Relations Tantiemekoers toegepas op vooruitgeskatte omset 5% - - Royalties rate applied on estimated future turnover Groei in verkope 2,7% - 8% 2,7% - 8% - Growth in sales Geweegde gemiddelde koste van kapitaal 18,4% 18,4% 14,9% Weighted average costs of capital Spesifieke risikopremie 1% 2% - Specific risk premium Leeftyd van die myn jaar Life of the mine Prys per ton - langtermyngroei - - 5% Price per ton - long-term growth Gemiddelde produksie per ton - langtermyngroei - - 5% Average production per ton - long-term growth Boltfast Boltfast CAM Motors Handels- Kliënte- Kliëntemerke verhoudinge verhoudinge Trademarks Client Client Relations Relations Tantieme koers toegepas op vooruitgeskatte omset 1% - - Royalties rate applied to pre-estimated turnover Groei in verkope 5% - 10% 5% -10% 4% - 10% Growth in sales Geweegde gemiddelde koste van kapitaal 17.7% 17.7% 18.5% Weighted average cost of capital Spesifieke risiko premie 1% 1% - Specific risk premium Waardedalingstoets vir klandisiewaarde Klandisiewaarde is hoofsaaklik ten opsigte van Promeal (Edms) Bpk, Boltfast (Edms) Bpk, CAM Motors (Edms) Bpk en is na die kontantgenererende eenhede geallokeer. Waardedalingstoets vir klandisiewaarde Promeal (Edms) Bpk Die verhaalbare bedrag van die kontant genererende eenhede word bereken gebaseer op waarde-in-gebruik. Vir hierdie berekeninge word gebruik gemaak van kontantvloei projeksies gebaseer op finansiële begrotings wat n periode van 6 jaar dek, soos goedgekeur deur Bestuur en beraamde groeikoerse wat nie die langtermyn gemiddelde groei oorskry nie. Sleutelaannames gebruik vir waarde-in-gebruik berekeninge: Die verdiskonteerde kontantvloei metode is gebruik met n nabelasting prysverdienste verhouding tussen 8,57 en 10,00 (2007: 8,57 en 10,00). Waardedalingstoets vir klandisiewaarde Boltfast (Edms) Bpk Die verhaalbare bedrag van die kontant genererende eenhede word bereken gebaseer op waarde-in-gebruik. Vir hierdie berekeninge word gebruik gemaak van kontantvloei projeksies gebaseer op finansiële begrotings, soos goedgekeur deur Bestuur. Sleutelaannames gebruik vir waarde-in-gebruik berekeninge: - n Na-belasting verdiskonteringskoers van 17.05% is gebruik. - Toekomstige kapitaalontwikkeling is ingesluit by die aannames. - n Groeikoers van 4% is gebruik. Impairment test for goodwill Goodwill is mainly in respect of Promeal (Pty) Limited, Boltfast (Pty) Limited, and CAM Motors (Pty) Limited and was allocated to the cash-generating units. Impairment test for goodwill Promeal (Pty) Ltd The recoverable amount of the cash-generating units is calculated based on value-in-use. For these calculations cash-flow projections based on financial budgets covering a period of 6 years, as approved by Management, and estimated growth rates not exceeding the long-term average growth were used. Key assumptions used for value-in-use calculations: The discounted cash-flow method was used with an aftertax price/earnings ratio of between 8,57 and 10,00 (2007 discount rate: 8,57 and 10,00). Impairment test for goodwill Boltfast (Pty) Ltd The recoverable amount of the cash-generating units is calculated based on value-in-use. For these calculations cash-flow projections based on financial budgets, as approved by Management, were used. Key assumptions used for value-in-use calculations: - An after-tax discounting test of 17,05% was used. - Future capital development has been included in the assumptions. - A growth rate of 4% was used. 67

72 6 ONTASBARE BATES (vervolg) Waardedalingstoets vir klandisiewaarde CAM Motors (Edms) Bpk 6 INTANGIBLE ASSETS (continued) Impairment test for goodwill CAM Motors (Pty) Ltd Vir die waardedalingstoets word die waarde van Toyota For the impairment test the value of Toyota Bredasdorp Bredasdorp Agentskap bepaal en vergelyk met die waarde Dealership was determined and compared with the value van die klandisiewaarde. Vir die waardasie word n of the goodwill. For the valuation a price earnings factor prysverdienste faktor van 6 toegepas op die gemiddelde of 6 was applied to the average profit for 2 years before wins vir 2 jaar voor belasting, naamlik die werklike resultate tax, namely the actual results for 2008 and the financial vir 2008 en die finansiële begroting vir 2009, soos budget for 2009, as approved by Management. goedgekeur deur Bestuur. Impairment test for intangible assets Waardedalingstoets vir ontasbare bates Management assessed the client relations, trademarks, Bestuur het die kliënteverhoudings, handelsmerke, mineral rights and software for possible impairment by mineraalregte en sagteware vir moontlike waardedaling investigating indicators showing a possibility that beoordeel deur ondersoek in te stel na indikators wat impairment may have occurred. moontlik daarop kan dui dat waardedaling plaasgevind het. Management is of the opinion that no impairment has Bestuur is van mening dat geen waardedaling op die ontasbare taken place on the intangible assets. bates plaasgevind het nie R 000 R BELEGGING IN FILIALE - MAATSKAPPY 7 INVESTMENT IN SUBSIDIARIES - COMPANY Belegging in Overberg Bedrywe (Edms) Bpk 792) 792 Investment in Overberg Bedrywe (Pty) Ltd Belegging in Overberg Beleggings (Edms) Bpk 187,504) 187,504 Investment in Overberg Beleggings (Pty) Ltd Ongenoteerde aandele teen kosprys 188,296) 188,296 Unlisted shares at cost price Besonderhede van bogenoemde beleggings word in Details of the abovementioned investments Bylaag A verstrek. are provided in Annexure A. 8 BELEGGING IN GEASSOSIEERDE 8 INVESTMENT IN ASSOCIATE Saldo aan die begin van die jaar 73) 166) Balance at the beginning of the year Belang in wins -) 67) Interest in profit Leningsrekening - Overberg Eiendomme (Edms) Bpk -) (160) Loan account - Overberg Eiendomme (Pty) Limited Belegging verkoop (73) -) Investment sold -) 73) 8.1 Overberg Eiendomme (Edms) Bpk 8.1 Overberg Eiendomme (Pty) Ltd Ongenoteerde aandele teen kosprys -) -) Unlisted shares at cost price Deel van behoue verdienste en reserwes na verkryging -) 73) Portion of retained earnings and reserves after acquisition Saldo aan die begin van die jaar 73) 6) Balance at the beginning of the year Deel van verdienste vir die jaar -) 67) Portion of earnings for the year Belegging verkoop (73) -) Investment sold )-) 73) Direkteurswaardasie -) 73) Directors' valuation Besonderhede van bogenoemde beleggings word in Details of the abovementioned investments Bylaag B verstrek. are provided in Annexure B. 68

73 9 FINANSIËLE INSTRUMENTE 9 FINANCIAL INSTRUMENTS 9.1 FINANSIËLE INSTRUMENTE PER KATEGORIE 9.1 FINANCIAL INSTRUMENTS PER CATEGORY - GROEP GROUP Die rekeningkundige beleid vir finansiële instrumente is op The accounting policy for financial instruments die toegepas onderstaande lynitems: was applied to the following line items: Lenings en Beskikbaar-vir- Totaal debiteure verkoop beleggings Loans and Available-for- Total receivables sale investments R 000 R 000 R Februarie February 2008 Bates soos per Balansstaat Assets as per Balance Sheet Beskikbaar-vir-verkoop beleggings , ,909 Available-for-sale investments Handels- en ander debiteure 303, ,078 Trade and other receivables Bedryfslenings 2,423-2,423 Operational loans Kontant en kontantekwivalente 78,571-78,571 Cash and cash equivalents 384, , ,981 Ander finansiële Totaal verpligtinge Other financial Total obligations Aanspreeklikhede soos per Balansstaat Liabilities as per Balance Sheet Langtermynlenings 111, ,776 Long-term loans Korttermynlenings 428, ,896 Short-term loans Handels- en ander krediteure 139, ,644 Trade and other creditors 680, ,316 Lenings en Beskikbaar-vir- Totaal debiteure verkoop beleggings Loans and Available-for- Total receivables sale investments R 000 R 000 R Februarie February 2007 Bates soos per Balansstaat Assets as per Balance Sheet Beskikbaar-vir-verkoop beleggings - 550, ,418 Available-for-sale investment Handels- en ander debiteure 241, ,185 Trade and other receivables Bedryfslenings Operational loans Kontant en kontantekwivalente 8,816-8,816 Cash and cash equivalents 250, , ,419 Ander finansiële Totaal verpligtinge Other financial Total obligations Aanspreeklikhede soos per Balansstaat Liabilities as per Balance Sheet Langtermynlenings 23,942 23,942 Long-term loans Korttermynlenings 283, ,176 Short-term loans Handels- en ander krediteure 65,950 65,950 Trade and other creditors 373, ,068 69

74 9.2 FINANSIËLE INSTRUMENTE KREDIETKWALITEIT 9.2 FINANCIAL INSTRUMENTS CREDIT QUALITY Die kredietkwaliteit van die finasiële bates wat nie buite The credit quality of the financial assets past due terme is of waarop geen waardedaling gemaak is nie, kan on which no impairment has been made may be vasgestel word met vewysing na die historiese inligting. determined with reference to the historical information. Handelsdebiteure R 000 R 000 Trade debtors Nuwe kliënte 13,320) 3,733) New clients Huidge kliënte met geen wanbetalingsgeskiedenis nie 227,899) 190,552) Current clients with no non-payment history Totale handelsdebiteure 241,219) 194,285) Total trade debtors Kontant en kontantekwivalente Cash and cash equivalents ABSA Bank 76,625) 2,685) ABSA Bank Eerste Nasionale Bank 426) 342) First National Bank Bank deposito's 371) 5,083) Bank deposits Ander 1,148) 706) Other Totale kontant en kontantekwivalente 78,571) 8,816) Total cash and cash equivalents 9.3 FINANSIËLE INSTRUMENTE 9.3 FINANCIAL INSTRUMENTS PER CATEGORY PER KATEGORIE - MAATSKAPPY Die rekeningkundige beleid vir finansiële instrumente is toegepas op die onderstaande lynitems: Lenings en debiteure Loans and receivables Totaal Total COMPANY The accounting policy for financial instruments was applied to the following line items: 29 Februarie February 2008 Bates soos per Balansstaat Assets as per Balance Sheet Bedryfslenings 26) 26) Operational loans 26) 26) 28 Februarie February 2007 Bates soos per Balansstaat Assets as per Balance Sheet Bedryfslenings 26) 26) Operational loans 26) 26) 10 BESKIKBAAR-VIR-VERKOOP BELEGGINGS 10 AVAILABLE-FOR-SALE INVESTMENTS Begin van jaar 550,418) 561,059) Beginning of the year Addisionele beleggings 674) -) Additional investments Waardedaling op beskikbaar-vir-verkoop beleggings -) (37) Impairment of available-for-sale investments Beleggings verkoop -) (17) Investments sold Billike waarde-aanpassing (74,183) (10,588) Fair value adjustment 476,909) 550,418) Oordrag na nie-bedryfsbates gehou vir verkoop (aantekening 11) (23,500) -) Transfer to non-current assets held for sale (note 11) 453,409) 550,418) 70

75 10 BESKIKBAAR-VIR-VERKOOP BELEGGINGS AVAILABLE-FOR-SALE INVESTMENTS (vervolg) R 000 R 000 (continued) Beleggings bestaan uit ongenoteerde beleggings: Investments consist of unlisted investments: Gekwoteerde sekuriteite Quoted securities - Maatskappy 452, ,531 - Company Ongekwoteerde sekuriteite Unquoted securities - Koöperasies Cooperatives - Maatskappye en ander 24,184 22,336 - Company and others - Uitgestelde bonusfondse Deferred bonus funds 476, ,418 Die beskikbaar-vir-verkoop beleggings is beswaar deur The available-for-sale investments have been encumbered middel van 'n sessie van Pioneer Foods-aandele ten gunste through a cession of Pioneer Foods shares in favour van die Landbank (aantekening 22). of the Land Bank (note 22). Die register van beleggings is vir inspeksie by die geregistreerde hoofkantoor van die onderskeie maatskappye beskikbaar. Vir die bepaling van billike waardes verwys na aantekening 3.3, Billike waarderaming, in die rekeningkundige beleid. The register of investments is available for inspection at the registered head office of the respective companies. For the determination of fair values refer to note 3.3, Fair value estimate, in the accounting policy. 11 NIE-BEDRYFSBATES GEHOU VIR VERKOOP 11 NON-CURRENT ASSETS HELD FOR SALE Nie-bedryfsbates geklassifiseer as gehou vir verkoop: Non-current assets classified as held for sale: Maatskappye en ander Companies and other Voorkeuraandele teen kosprys 22,322 - Preference shares at cost Billike waarde-aanpassing 1,178 - Fair value adjustment 23, BIOLOGIESE BATES 12 BIOLOGICAL ASSETS Lewende hawe: Livestock: Begin van die jaar 1,141 1,058 Beginning of the year Herklassifikasie - (30) Reclassification Hersaamgestelde beginsaldo 1,141 1,028) Recompiled opening balance Billike waarde-aanpassing ) Fair value adjustment Einde van die jaar 1,167 1,141) End of the year Die Groep beoefen boerderybedrywighede wat insluit 'n skaapkudde en die verbouing van graangewasse. Koring, skape en skaapwol word verhandel. Op 29 Februarie 2008 het die Groep skape [978 volgroei en 577 lammers] (2007: skape [1 276 volgroei en 204 lammers]) gehad. Die Groep het die volgende geproduseer, gemeet op punt van oes teen billike waarde min verkoopskoste, vir die jaar geeïndig 29 Februarie The Group conducts farming activities including a herd of sheep and the cultivation of grain crops. Wheat, sheep and wool are traded. On 29 February 2008 the Group had sheep [978 fully grown and 577 lambs (2007: sheep [1 276 fully grown and 204 lambs]). The Group produced the following, measured at harvesting against fair value less selling costs for the year ended 29 February Skape Sheep Wol Wool Graan 1,877 1,088 Grain 2,190 1,356 71

76 13 UITGESTELDE BELASTING DEFERRED TAXATION R 000 R 000 Uitgestelde belasting is bereken op alle tydelike verskille volgens die aanspreeklikheidsmetode en 'n belastingkoers van 28% (2007: 29%). Deferred taxation was calculated on all temporary differences according to the liability method and a taxation rate of 28% (2007: 29%). Die beweging op die uitgestelde belastingrekening word verteenwoordig deur die volgende: The movement on the deferred taxation account comprises the following : Uitgestelde belastingbate Deferred taxation Begin van die jaar 7,610) 9,676) Beginning of the year Beweging vir die jaar: Movement for the year: Oorgedra na uitgestelde belastinglas (353) -) Carried over to deferred taxation liability Belastingverlies (3,372) 1,634) Taxation loss Waardevermindering 918) (2,805) Depreciation Voorsienings 2,220) (1,949) Provisions Uitgestelde inkomste (89) (383) Deferred income Biologiese bates 4) 142) Biological assets Uitgestelde belastingbate nie voorsien (63) 1,294) Deferred taxation asset not provided for Einde van die jaar 6,875) 7,610) End of the year Die saldo is saamgestel uit die volgende: The balance is compounded of the following: Berekende aangeslane verlies 60) 3,700) Calculated assessed loss Versnelde slytasie (6,426) (7,309) Accelerated wear and tear Biologiese bates (325) (328) Biological assets Voorsienings 13,500) 11,341) Provisions Uitgestelde inkomste 128) 205) Deferred income Uitgestelde belastingbate nie voorsien * (63) -) Deferred taxation asset not provided for* 6,875) 7,610) Die uitgestelde belastingbate word erken op die filiale waar van toepassing, aangesien daar na alle verwagting, soos deur begrotings aangedui en deur Bestuur goedgekeur, belasbare inkomste sal realiseer. *Uitgestelde belasting is nie voorsien op filiale waar daar geen verwagting is vir toekomstige belasbare inkomste in die nabye toekoms nie. Uitgestelde belastinglas The deferred taxation asset is recognised on the subsidiaries where applicable, as taxable income is expected to be realised as indicated by budgets and approved by Management. *Deferred taxation is not provided for on subsidiaries where there is no expectation of future taxable income in the near future. Deferred taxation liability Begin van die jaar (26,849) (26,060) Beginning of the year Koersverandering Change in rate Inkomstestaat 490) -) Income Statement Beweging vir die jaar: Movement for the year: oorgedra van uitgestelde belastingbate 353) -) carried over from deferred taxation asset besigheidsamevoeging (aantekening 42) (3,050) -) business combination (note 42) belastingverlies 197) 419) taxation loss 72

77 13 UITGESTELDE BELASTING (vervolg) DEFERRED TAXATION (continued) R 000 R 000 waardevermindering (1,232) (1,650) depreciation amortisasie 383) 439) amortisation voorsienings 1,141) 6) provisions aanpassing weens verkoop van bates en laste 34) -) adjustment due to sale of assets and liabilities Einde van die jaar (28,534) (26,847) End of the year Die saldo is saamgestel uit die volgende: The balance comprises the following: berekende aangeslane verlies 3 451) 3,155) calculated assessed loss versnelde afskrywing van eiendom, aanleg en toerusting (13,554) (12,768) accelerated write-off of property, plant and equipment versnelde amortisasie van ontasbare bates (19,386) (15,240) accelerated amortisation of intangible assets voorsienings 955) (1,993) provisions (28,534) (26,847) 14 BEDRYFSLENINGS - GROEP 14 CURRENT LOANS - GROUP Ander bedryfslenings 2,423) -) Other operational loans Die lening is onverseker, rentevry en het geen terugbetalingsvoorwaardes nie. Die drawaarde verteenwoordig die billike waarde van die lening. 14 BEDRYFSLENINGS - MAATSKAPPY The loan is unsecured and interest-free and has no repayment conditions. The carrying value represents the fair value of the loan. 14 CURRENT LOANS - COMPANY Verwante partylenings 26) 26) Related party loans Die lening is onverseker, rentevry en het geen terugbetalingsvoorwaardes nie. Die drawaarde verteenwoordig die billike waarde van die lening. The loan is unsecured and interest-free and has no terms of repayment. The carrying value represents the fair value of the loan. 15 VOORRAAD 15 INVENTORY Handelsvoorraad 117,978) 65,134) Trading stock Verbruiksvoorraad 3,298) 2,798) Consumable inventory Werk-in-proses 779) 687) Work-in-progress Graan en ander produkte 219,119) 134,325) Grain and other products Grondstof en rou materiaal 143) 177) Raw materials Ingesluit in graan en ander produkte is moutgars ter waarde van R184,523,010 (2007: R114,754,370) wat dien as sekuriteit vir die Rand Aksep Bank-lening (verwys aantekening 22). Die balans van die graan en ander produkte dien as sekuriteit vir die Landbanklening (verwys aantekening 22). Die graan en ander produkte se waarde sluit leenkoste en silouitgawes gekapitaliseer in. Leenkoste ter waarde van R5,566,826 is gekapitaliseer en ingesluit in die moutgarswaarde teen 'n rentekoers van prima min 2,35%. Leenkoste ter waarde van R544,374 is gekapitaliseer en ingesluit in die saadwaarde teen 'n rentekoers van prima min 2,00%. Silo-uitgawes 341,318) 203,121) Included in grain and other products is malt barley to the value of R184,523,010 (2007: R114,754,370) that serves as security for the Rand Merchant Bank loan (refer note 22). The balance of the grain and other products serves as security for the Land Bank loan (refer note 22). The value of grain and other products includes borrowing costs and silo expenditure capitalised. Borrowing costs to the value of R5,566,826 have been capitalised and included in the malt barley value at an interest rate of prime less 2,35%. Borrowing costs to the value of R544,374 have been capitalised and included in the seed value at an 73

78 15 VOORRAAD (vervolg) INVENTORY (continued) R 000 R 000 ter waarde van R4,194,669 (2007: R2,965,757) is gekapitaliseer teen moutgars. Bestuur het meganisasievoorraad, ingesluit in handelsvoorraad, afgeskryf met R nul (2007: R4,114,280) na netto realiseerbare waarde. Daar is n algemene noturiële verband oor voorraad ten gunste van die ABSA banklening (aantekening 22). interest rate of prime less 2,00%. Silo expenditure to the value of R4,194,669 (2007: R2,965,757) has been capitalised against malt barley. Management has written off mechanisation inventory, included in trade inventory, by R zero (2007: R4,114,280) to net realisable value. There is a general notarial bond over stock in favour of the ABSA bank loan (note 22). 16 HANDELS- EN ANDER DEBITEURE - GROEP 16 TRADE AND OTHER RECEIVABLES - GROUP Handelsdebiteure 216, ,905 Trade debtors Huurkoopdebiteure 59,304 50,059 Hire-purchase debtors Min: Voorsiening vir waardedaling in debiteure (19,729) (19,558) Less: Provision for impairment in debtors 256, ,406 Diverse 2,664 4,428 Sundries Suid-Afrikaanse Inkomstediens BTW 28,663 8,302 South African Revenue Services VAT Vooruitbetalings 15,545 - Prepayments Personeellenings Personnel loans 303, ,185 Minus: Langtermyngedeelte van huurkoopdebiteure (40,014) (31,325) Less: Long-term portion of hire-purchase debtors 263, ,861 Die billike waarde van handels- en ander debiteure is soos volg: The fair value of trade and other debtors is as follows: Handelsdebiteure 199, ,301 Trade debtors Huurkoopdebiteure 56,496 49,105 Hire-purchase debtors Ander debiteure 46,941 12,780 Other debtors 303, ,185 Daar is nie 'n hoë konsentrasie van kredietrisiko met betrekking tot handelsdebiteure nie, aangesien dit bestaan uit 'n wydverspreide aantal debiteure. Vooruitbetalings verteenwoordig betalings gemaak aan verskaffers om kunsmisgrondstowwe se verskaffing en pryse te verseker vir die komende seisoen in die lig van die tekorte en gepaardgaande prysstygings van sekere kern-kunsmisgrondstowwe wat wêreldwyd ervaar word. Die handelsdebiteure, huurkope en ander debiteure wat binne terme is beloop: 241, ,285) Ingesluit in handel- en ander debiteure is rekeninge wat buite terme is maar geen waardedaling is gedoen nie. Hierdie handelsdebiteure verwys na individuele kliënte wat geen onlangse geskiedenis van wanbetaling het nie. 5,190 16,801 There is not a high concentration of credit risk with regard to trade debtors, as it consists of a wide-spread number of debtors. Prepayments represent payments made to suppliers to ensure the supply and price of raw materials for fertiliser the coming season in view of the shortages and accompanying price increases of certain core fertiliser raw materials being experienced globally. The trade debtors, hire-purchases and other debtors who are fully performing amount to: Included in trade and other debtors are accounts past due, but no depreciation has been done. These trade debtors represent individual clients who have no recent history of default. 74

79 16 HANDELS- EN ANDER DEBITEURE - GROEP TRADE AND OTHER RECEIVABLES - GROUP (vervolg) R 000 R 000 (continued) Die ouderdomsontleding van hierdie handels- en ander The age analysis of these trade and other debiteure is soos volg: debtors is as follows: dae days dae 2,761 4, days dae 616 9, days 90 dae en ouer 1,085 1, days and older 5,190 16,801 Die handelsdebiteure, huurkope en ander debiteure waarop voorsiening vir waardedalings gedoen is nadat sekuriteite in ag geneem is, beloop: 29,457 36,877 Daar word verwag dat 'n gedeelte van hierdie debiteure verhaal sal word. The trade debtors, hire-purchases and other debtors on whom provision has been made for impairment after taking into account securities, amount to: It is expected that a portion of these debtors will be recovered. Die ouderdomsontleding van hierdie debiteure is soos volg: Binne 1 jaar 997 4,148 The ageing analysis of these debtors is as follows: Within 1 year Tussen 1 en 2 jaar 28,459 32,729 Between 1 and 2 years 29,457 36,877 Die Groep besit die volgende tipes sekuriteite wat in ag geneem is in die bepaling van enige voorsiening vir waardedaling van handelsdebiteure en huurkoopdebiteure: The Group owns the following types of securities that were taken into account in determining any provision for impairment of trade debtors and hire-purchase debtors: Eerste verbande oor eiendom 5,831 6,200 First mortgages over property Tweede verbande oor eiendom 1,878 2,741 Second mortgages over property Derde verbande oor eiendom Third mortgages over property Vierde verbande oor eiendom Fourth mortgages over property Notariële verbande 1,474 3,999 Notarial bonds Sessie van aandele 4,770 3,251 Cession of shares Persoonlike waarborge 2,023 3,206 Personal guarantees Huurkoopbates 2,894 4,060 Hire-purchase assets 19,621 24,206 Die billike waardes van die sekuriteit is beperk tot die waarde wat die terme oorskry. Die billike waardes van die toepaslike sekuriteite is bepaal soos uiteengesit in aantekening 3.3. Die Groep het 'n voorsiening van R180,279 (2007: R870,038) erken vir waardedaling van handelsdebiteure. Die individuele waardedaling van handelsdebiteure is ten opsigte van produsente wat nie hulle skuld kon delg uit bedryfsaktiwiteite nie. Die voorsiening vir waardedaling is ingesluit in verkoops- en bemarkingskoste in die Inkomstestaat. The fair values of the securities are limited to the value exceeding the terms. The fair values of the applicable securities were determined as set out in note 3.3. The Group has recognised a provision of R180,279 (2007: R870,038) for impairment of trade debtors. The individual impairment of trade debtors is in respect of producers who could not settle their debts from current activities. The provision for impairment has been included in sales and marketing costs in the Income Statement. 75

80 16 HANDELS- EN ANDER DEBITEURE - GROEP (vervolg) R 000 R 000 Beweging in die voorsienings vir waardedalings van handelsdebiteure en huurkoopdebiteure is soos volg: FOR THE YEAR ENDED 28 FEBRUARY TRADE AND OTHER RECEIVABLES - GROUP (continued) Movements in the provisions for impairment of trade debtors and hire-purchase debtors are as follows: Saldo 01 Maart 19,548 18,688 Balance 01 March Besigheidsamevoeging (aantekening 42) Voorsiening vir waardedaling van handelsdebiteure en huurkoopdebiteure 11,560 14,219 Handelsdebiteure en huurkoopdebiteure afgeskryf gedurende die jaar as oninbaar (21) (331) Onbenutte bedrae teruggeskryf (11,559) (13,028) Saldo 29 Februarie ,729 19,548 Die maksimum blootstelling aan kredietrisiko op die verslaggewingsdatum is die billike waarde van elke klas debiteur hierbo genoem. Alle huurkoopdebiteure is ontvangbaar binne 5 jaar vanaf die balansstaatdatum. Die effektiewe rentekoers van die huurkoopdebiteure is gekoppel aan prima rentekoers plus of minus 'n persentasie, gegrond op die debiteur se risikoprofiel. Die vervaldatums van huurkope is soos volg: Business combinations (note 42) Provision for impairment of trade debtors and hirepurchase receivables Trade receivables and hire-purchase debtors written off as irrecoverable during the year Unutilised amounts written back Balance 29 February 2008 The maximum exposure to credit risk on the reporting date is the fair value of each class of receivables referred to above. All hire-purchase receivables are receivable within 5 years of the balance sheet date. The effective interest rate of the hire-purchase receivables is linked to the Land Bank rate plus a percentage point, based on the receivables risk profile. The dates of maturity ofhire-purchases are as follows: Op 29 Februarie 2008 Finansier- Paaieingskoste mente At 29 February 2008 Kapitaal Capital Financing Instalments costs R 000 R 000 R 000 Binne een jaar 19,290 6,868 26,159 Within one year Tussen 1 en 2 jaar 13,792 4,816 18,607 Between 1 and 2 years Tussen 2 en 3 jaar 11,972 2,955 14,926 Between 2 and 3 years Tussen 3 en 4 jaar 8,793 1,436 10,229 Between 3 and 4 years Tussen 4 en 5 jaar 5, ,970 Between 4 and 5 years 59,304 16,587 75,892 Op 28 Februarie 2007 On 28 February 2007 Binne een jaar 18,734 4,634 23,368 Within one year Tussen 1 en 2 jaar 14,397 3,361 17,758 Between 1 and 2 years Tussen 2 en 3 jaar 9,869 1,824 11,693 Between 2 and 3 years Tussen 3 en 4 jaar 5, ,035 Between 3 and 4 years Tussen 4 en 5 jaar 1, ,900 Between 4 and 5 years 50,059 10,696 60, % % Die effektiewe rentekoers op die debiteure is soos volg: Teen swewende rentekoerse: 14,66% 12,84% Handelsdebiteure ten bedrae van R260,870,839 dien as kollateraal ten gunste van die Landbank. Die Landbank verskaf 'n produksielening met 'n oortrokke fasiliteit en dra rente soos bepaal van tyd tot tyd deur die Landbank (tans 12,5% [2007: 10,0%]). Indien The effective interestrate on the debtors is as follows: At floating interest rates: Trade receivables to the value of R260,870,839 serve as collateral in favour of the Land Bank. The Land Bank provides a production loan with an overdraft facility bearing interest as determined by the Land Bank from time to time (currently 76

81 16 HANDELS- EN ANDER DEBITEURE - GROEP (vervolg) die Maatskappy nie by die terme van die produksielenings bly nie, het die Landbank die reg om kontantvloei van die handelsdebiteure te vorder en/of ander sekuriteite (verwys aantekening 22) op te roep om die uitstaande bedrag te delg. Indien die terme van die produksielening nagekom word gaan die Maatskappy voort om die handelsdebiteure te vorder en nuwe handelsdebiteure skuld as kollateraal aan te bied. In terme van die kredietbeleid moet persone versekering uitneem om die skuld te delg in die geval van dood. Die versekeringspolisse is gesedeer aan die Maatskappy. Die versekeringspolisse is ook aan die Landbank sedeer as sekuriteit vir die lenings (verwys aantekening 22). 16 TRADE AND OTHER RECEIVABLES - GROUP (continued) 12,5% [2007: 10,0%]). If the Company does not keep to the terms of the production loans, the Land Bank has the right to collect cash flow from the trade receivables and/or call up other securities (refer note 22) to settle the outstanding amount. If the terms of the production loan are honoured, the Company will continue to collect the trade receivables and offer new trade receivables debt as collateral. In terms of the credit policy persons have to take out insurance to settle the debt in the event of death. The insurance policies have been ceded to the Company. The insurance policies have also been ceded to the Land Bank as security for the loans (refer note 22). Daar is ook n sessie op handelsbedibeure van R12,231,596 ten gunste van die ABSA banklening. Die banklenings dra rente soos van tyd tot tyd bepaal en tans is die rentekoers prima min 1% (aantekening 22) R 000 R KONTANT EN KONTANTEKWIVALENTE 17 CASH AND CASH EQUIVALENTS Bankrekeninge 77,846 3,145 Bank accounts Kontant voorhande Cash on hand Aanvraag-deposito's 54 4,705 Call deposits Ander deposito's Other deposits 78,571 8,816 There is also a cession on trade receivables of R12,231,596 in favour of the ABSA bank loan. The bank loans bear interest as determined from time to time and currently the interest rate is prime less 1% (note 22) % % Die effektiewe rentekoers op banksaldo's en korttermyn The effective interest rate on bank balances and short-term bankdeposito's is soos volg: bank deposits is as follows: - Teen swewende rentekoerse: - At floating interest rates: - Banksaldo's 0,00%-5,00% 0,05%-2,40% - Bank balances - Korttermyn bankdeposito's 0,00%-11,20% 1,50%-8,25% - Short-term bank deposits HUIDIGE BELASTINGBATE R 000 R CURRENT TAXATION ASSET Inkomstebelasting 3,655 10, HUIDIGE BELASTING AANSPREEKLIKHEID Inkomstebelasting AANDELEKAPITAAL - GROEP Gemagtig 10,000,000 gewone aandele van 15 sent elk (2007: 10,000,000) gewone aandele van 15 sent elk 1,500 1,500 Uitgereik gewone aandele van 15 sent elk (2007: 8,388,583) gewone aandele van 15 sent elk 1,258 1,258 Income tax 18 CURRENT TAXATION OBLIGATION Income tax 19 SHARE CAPITAL - GROUP Authorised 10,000,000 ordinary shares of 15 cents each (2007: 10,000,000) ordinary shares of 15 cents each Issued 8,388,583 ordinary shares of 15 cents each (2007: 8,388,583) ordinary shares of 15 cents each 77

82 19 AANDELEKAPITAAL - MAATSKAPPY R 000 R 000 Gemagtig 10,000,000 gewone aandele van 15 sent elk (2007: 10,000,000) gewone aandele van 15 sent elk 1,500 1,500 Uitgereik 8,388,583 gewone aandele van 15 sent elk (2007: 8,388,583) gewone aandele van 15 sent elk 1,258 1, AANDEELPREMIE - GROEP EN MAATSKAPPY Saldo begin van jaar 187,064) 187,064) Premie op aandele uitgereik gedurende die jaar -) -) Saldo einde van die jaar 187,064) 187,064) 21 NA-AFTREDE MEDIESE VOORDELE Na-aftrede mediese voordele is betaalbaar aan 'n spesifieke groepering van deelnemende voormalige en huidige werknemers. Verpligting soos op balansstaatdatum: Na-aftrede mediese verpligting 12,417) 13,134) Korttermyn deel van verpligting 1,233) 717) Langtermyn deel van verpligting 11,184) 12,417) Koste in die Inkomstestaat erken: Na-aftrede mediese voordele 611) 239) 21.1 NA-AFTREDE MEDIESE VOORDELE - VOORMALIGE WERKNEMERS Na-aftrede mediese voordele is betaalbaar aan 'n spesifieke groepering van deelnemende voormalige werknemers. Op jaareinde was die getal lede van voormalige werknemers 76 (2007: 79). Die bedrae erken in die Inkomstestaat is soos volg: 19 SHARE CAPITAL - COMPANY Authorised 10,000,000 ordinary shares of 15 cents each (2007: 10,000,000) ordinary shares of 15 cents each Issued 8,388,583 ordinary shares of 15 cents each (2007: 8,388,583) ordinary shares of 15 cents each 20 SHARE PREMIUM - GROUP AND COMPANY Balance beginning of the year Premium on shares issued during the year Balance end of the year 21 POST-RETIREMENT MEDICAL BENEFITS Post-retirement medical benefits are payable to a specific grouping of participating former and current employees. Liability as at balance sheet date: Post-retirement medical liability Short-term portion of liability Long-term portion of liability Costs recognised in the Income Statement: Post-retirement medical benefits 21.1 POST-RETIREMENT MEDICAL BENEFITS - FORMER EMPLOYEES Post-retirement medical benefits are payable to a specific grouping of participating former employees. At year-end the number of members consisting of former employees was 76 (2007: 79) The amounts recognised in the Income Statement are as follows: Rente betaal 1,011) 937) Interest paid Aktuariële wins op verpligting (686) (485) Actuarial profit on liability Totale inkomstestaat-beweging 324) 452) Total income statement movement Beweging in die verpligting erken in die Balansstaat: Movement in the liability recognised in the Balance Sheet: Netto verpligting aan die begin van die jaar 12,632) 12,766) Net liability at the beginning of the year Herklassifikasie -) 432) Reclassification Hersaamgestelde beginsaldo 12,632) 13,198) Restated opening balance Totale inkomstestaat-beweging - soos bo aangetoon 324) 452) Total income statement movement - as indicated above Bydraes deur die werkgewer (1,022) (1,019) Contributions by the employer Netto verpligting aan die einde van die jaar 11,934) 12,632) Net liability at the end of the year Korttermyn deel van verpligting 1,072) 698) Short-term portion of liability Langtermyn deel van verpligting 10,862) 11,934) Long-term portion of liability 78

83 21.1 NA-AFTREDE MEDIESE VOORDELE VOORMALIGE WERKNEMERS (vervolg) % % Hoof-aktuariële aannames: Verdiskonteringskoers 8.30% 8.00% Inflasiekoers 4.77% 5.00% Sensitiwiteitsanalise van na-aftrede mediese verpligting vir voormalige werknemers: R 000 R 000 Effek van inflasiekoers verhoging/verlaging van 1% op die verpligting 1,109 1,233) Effek van na-aftrede afsterwe datum-verhoging/verlaging van 1 jaar (2007: 2 jaar) op die verpligting ) 21.2 NA-AFTREDE MEDIESE VOORDELE - INDIENS WERKNEMERS Na-aftrede mediese voordele is betaalbaar aan 'n spesifieke groepering van deelnemende huidige werknemers. Op jaareinde was die getal lede van huidige werknemers 29 (2007: 33). Die bedrae erken in die inkomstestaat is soos volg: Beweging in verpligting met diensbeëindiging van lede 286 (213) Totale inkomstestaat-beweging 286 (213) Beweging in die verpligting erken in die Balansstaat: Netto verpligting aan die begin van die jaar 502 1,626) Totale inkomstestaat-beweging - soos bo aangetoon 286 (213) Bydraes deur die werkgewer (306) (910) Netto verpligting aan die einde van die jaar ) Korttermyn deel van verpligting ) Langtermyn deel van verpligting ) Op 1 Maart 2005 is die verpligting van 49 lede in diens uitgekoop. Instede van aftree-subsidie of mediese skema-bydraes, is 'n vasgestelde bydrae in gelyke maandelikse paaiemente oor die korter van 6 jaar of die oorblywende jare tot aftrede betaalbaar. Die vasgestelde bydrae verskil per individu en bydraes word onmiddellik beëindig met onttrekking, afsterwe, onbevoegdheid of vroeë aftrede. n Aktuariële waardasie vir die na-aftrede mediese verpligting van werknemers in diens is gedoen op 28 Februarie Die verpligting word jaarliks aangepas met die diensbeëindiging wat in die Inkomstestaat erken word en die bydraes deur die werkgewer POST-RETIREMENT MEDICAL BENEFITS - FORMER EMPLOYEES (continued) Primary actuarial assumptions: Discount rate Inflation rate Sensitivity analysis of post-retirement medical liability for former employees: Effect of inflation rate increase/decrease of 1% on the liability Effect of post-retirement death date increase/decrease of 1 year (2007: 2 years) on the liability 21.2 POST-RETIREMENT MEDICAL BENEFITS - CURRENT EMPLOYEES Post-retirement medical benefits are payable to a specific grouping of participating current employees. At year-end the number of members that are current employees was 29 (2007: 33). The amounts recognised in the Income Statement are as follows: Movement in liability upon termination of service of members Total income statement movement Movement in the liability recognised in the Balance Sheet: Net liability at the beginning of the year Total income statement movement - as indicated above Contributions by the employer Net liability at the end of the year Short-term portion of liability Long-term portion of liability On 1 March 2005 the liability of 49 current employees was bought out. Instead of retirement subsidy or medical scheme contributions, a fixed amount is payable in equal monthly instalments over the shorter of six years or the remaining years until retirement. The fixed contribution differs per individual and contributions cease immediately upon withdrawal, death, disability or early retirement. An actuarial valuation for the post-retirement medical liability of current employees was done on 28 February The liability is adjusted annually with the service terminations recognised in the Income Statement and the contributions by the employer. 79

84 21.2 NA-AFTREDE MEDIESE VOORDELE INDIENS WERKNEMERS (vervolg) R 000 R 000 Die aktuariële waardasie bereken in 2005 is gedoen deurdat die huidige waarde van die verpligting bereken is met die inagneming van 'n verdiskonteringskoers, sterftesyfer en onttrekkings. 22 LENINGS Nie-bedryfslenings Banklenings Banklenings 83,790 - Afbetalingsverkoopooreenkomste 27,985 23, POST-RETIREMENT MEDICAL BENEFITS - CURRENT EMPLOYEES (continued) The actuarial valuation calculated in 2005 was done by calculating the current value of the liability, taking into account a discount rate, death figure and withdrawals. 22 BORROWINGS Non-current borrowings Bank borrowings Bank borrowings Instalment sale agreements Bedryfslenings 111,776 23,942 Current borrowings Banklenings Landbanktermynlenings - 1,050 Landbankproduksielening 146, ,619 Rand Aksep Bank 184, ,510 Banklenings 7,012 - Oortrokke bank 531 3,108 Afbetalingsverkoopooreenkomste 5,297 6,182 Ander lenings 85,283 38,707 Bank borrowings Land Bank term borrowings Land Bank production borrowings Rand Merchant Bank Bank borrowings Overdraft Instalment sale agreements Other borrowings 428, , , ,118 Die Landbanktermynlenings dra rente soos van tyd tot tyd bepaal deur die Landbank (2007: 11,50%). Die laaste betaling was op 30 September 2007 gedoen. Die Groep het 'n Landbankproduksielening met 'n oortrokke fasiliteit en dra rente soos van tyd tot tyd bepaal deur die Landbank (tans 12,50% [2007: 10,00%]). Die Landbanklening is verseker deur graan en ander produkte (verwys aantekening 15). 'n Sessie van Pioneer Foods Bpkaandele (verwys aantekening 10), 'n beswaring van handelsdebiteure (verwys aantekening 16), sessie van die versekeringskontrak (verwys aantekening 16) en borgakte van Overberg Agri Beperk. Die Groep het 'n fasiliteit in terme van 'n Milldoor-kontrak met Rand Aksep Bank en The South African Breweries Maltings (Pty) Limited vir die finansiering en lewering van moutgars en die gars dien as sekuriteit (aantekening 15). Die fasiliteit dra rente soos van tyd tot tyd bepaal deur Rand Aksep Bank, tans prima min 2,35% (2007: prima min 2,35%). The Land Bank term borrowings bear interest as determined from time to time by the Land Bank (2007: 11,50%). The last payment was made on 30 September The Group has a Land Bank production borrowings with an overdraft facility bearing interest as determined from time to time by the Land Bank (currently 12,50% [2007: 10,00%]). The Land Bank borrowings is ensured through grain and other products (refer note 15). A cession of Pioneer Foods Ltd shares (refer note 10), an encumbrance of trade debtors (refer note 16), cession of the insurance contract (refer note 16) and suretyship of Overberg Agri Limited. The Group has a facility in terms of a Milldoor contract with Rand Merchant Bank and The South African Breweries Maltings (Pty) Limited for the financing and supply of malting barley and the barley serves as security (note 15). The facility bears interest as determined from time to time by the Rand Merchant Bank currently prime less 2,35% (2007: prime less 2,35%). 80

85 22 LENINGS (vervolg) R 000 R 000 Die Groep het banklenings wat terugbetaalbaar is in maandelikse paaiemente oor termyne wat wissel tussen sewe en 10 jaar. Die banklenings is verseker deur 'n sessie oor debiteure (aantekening 16), 'n verband oor eiendom (aantekening 4), 'n algemene notariële verband oor alle vaste bates (aantekening 4), uitsluitende die grond en geboue en voorraad, en beperkte borgstelling in die Groep van R67,000,000. Die banklenings dra rente soos van tyd tot tyd bepaal en tans is die rentekoers prima plus 1%. Die Groep het 'n oortrokke bankfasiliteit met ABSA Bank wat onverseker is. Die fasiliteite dra rente soos van tyd tot tyd bepaal deur ABSA Bank (tans 12,50% - 14,50% [2007: 10,50% - 12,50%]). Die afbetalingsverkoopooreenkomste ten opsigte van vaste bates is terugbetaalbaar in 12 tot 84 maandelikse paaiemente. Die paaiemente daal soos bestaande ooreenkomste verval. Tans wissel die rentekoers tussen 9,5% en prima plus 1% (2007: 8,5% en 9,5%). Daar is 'n bedrag van R651,330 (2007: R4,703,990) vooruitbetaal by Wesbank. Die ander lenings verteenwoordig deposito's gemaak deur aandeelhouers en lede van Overberg Agri Beperk en is onverseker. Die fasiliteit dra rente soos van tyd tot tyd bepaal [tans 11,50% (2007: 9,50%)]. Daar is geen terugbetalingsvoorwaardes nie. Beperkte borgstelling van R5 miljoen is verskaf vir skulde van Promeal (Edms) Beperk, sessie van leningsrekening ingesluit. Die Groep se blootstelling aan rentekoersaanpassings en kontraktuele hernuwingsdatums op die balansstaatdatum is soos volg: Binne 1 jaar 428, ,176 1 tot 2 jaar 48,919-2 tot 5 jaar 62,777 23, , , BORROWINGS (continued) The Group has bank borrowings repayable in monthly instalments over periods varying between seven and 10 years. The bank borrowings have been insured through a cession over debtors (note 16), a mortgage on property (note 4), a general notarial bond over all fixed assets (note 4), excluding the land and buildings and inventory, and limited suretyship in the Group of R67,000,000. The bank borrowings bear interest as determined from time to time and the interest rate is currently prime plus 1%. The Group has an overdraft facility with ABSA Bank which is uninsured. The facilities bear interest as determined from time to time by ABSA Bank (currently 12,50% - 14,50% [2007: 10,50% - 12,50%]). The instalment sale agreements in respect of fixed assets are repayable in 12 to 84 monthly instalments. The instalments decrease as existing agreements mature. Currently the interest rate varies between 9,5% and prime plus 1% (2007: 8,5% and 9,5%). An amount of R651,330 (2007: R4,703,990) has been prepaid at Wesbank. The other borrowings represent deposits made by shareholders and members of Overberg Agri Limited and are uninsured. The facility bears interest as determined from time to time [currently 11,50% (2007: 9,50%)]. There are no repayment conditions. Limited suretyship of R5 million was provided for debts of Promeal (Pty) Limited, cession of loan account included. The Group's exposure to interest rate adjustments and contractual renewal dates at balance sheet date is as follows: Within 1 year 1 to 2 years 2 to 5 years Die Groep se totale leningsfasiliteite tot hul beskikking beloop: 587, ,442 Die Groep het die volgende onaangewende leningsfasiliteite, teen wisselende rentekoerse en wat jaarliks hernubaar is, tot sy beskikking: Leningsfasiliteite verskaf deur finansiële instellings 256, ,231 The Group's total borrowing facilities available amount to: The Group has the following unutilised annually renewable borrowing facilities available at varying interest rates: Borrowing facilities provided by financial institutions 81

86 spirited 82 Photography on pages 12, 18, 21, 32, 43, 54 & 82 by Wikus Leeuwner

87 22 LENINGS (vervolg) 22 BORROWINGS (continued) Rekonsiliasie tussen die minimum afbetalingsverkoopooreenkomste en hul huidige waarde: Huidige Meer as waarde 1 Jaar 1-5 Jaar 5 Jaar Current More than value 1 Year 1-5 Years 5 Years 2008 Minimum afbetalingsverkoopooreenkomste 44,646) 8,481) 30,046) 6,119) Toekomstige finansieringskoste (12,282) (3,637) (8,172) (425) Reconciliation between the minimum instalment sale agreements and their current value: 2008 Minimum instalment sale agreements Future financing costs Huidige waarde van afbetalingsverkoopooreenkomste 32,364) 4,844) 21,874) 5,694) Current value of instalment sale agreements Minimum afbetalingsverkoopooreenkomste 39,003) 8,859) 27,667) 2,477) Minimum instalment sale agreements Toekomstige finansieringskoste (8,879) (2,676) (6,120) (83) Future financing costs Huidige waarde van afbetalingsverkoopooreenkomste 30,124) 6,183) 21,547) 2,394) Current value of instalment sale agreements Die drawaarde van die lang- en korttermyn lenings is ongeveer gelykstaande aan die billike waarde daarvan. R 000 R HANDELS- EN ANDER KREDITEURE Handelskrediteure 107,582 40,382 Suid-Afrikaanse Inkomstediens - BTW Voorsiening ouditgelde 2,106 1,909 Ander krediteure 291 8,967 Opgelope uitgawes: Verlof 3,736 3,080 Winsbonus 6,250 5,000 Prestasievergoedingskema 7,224 - Ander 8,437 2,447 Uitgestelde Inkomste 3,277 4,165 The carrying value of the long- and short-term borrowings is approximately equal to the fair value thereof. 23 TRADE AND OTHER CREDITORS Trade creditors South African Revenue Services - VAT Provision audit fees Other creditors Accrued expenditure: Leave Profit bonus Performance incentive scheme Other Deferred income 139,644 65, VOORSIENINGS VIR AANSPREEKLIKHEDE Wanaan- Langtermyn Rehabilitasie Totaal wending van aansporing- van surplusse skema myngrond Misapprop- Longterm Rehabilitation Total riation of incentive of surpluses scheme mining land R 000 R 000 R 000 R 000 Saldo 01 Maart , ,809 Beweging in Inkomstestaat: 1, ,313) - Nuwe voorsienings 1, ,313 - Voorsienings benut Saldo 28 Februarie , ,122) Beweging in Inkomstestaat 1,448 1, ,617 - Nuwe voorsienings 1,448 1, ,617 Saldo 28 Februarie ,392 1, , PROVISIONS FOR LIABILITIES Balance 01 March 2006 Movement in Income Statement - New provisions - Provisions utilised Balance 28 February 2007 Movement in Income Statement - New provisions Balance 28 February

88 24 VOORSIENINGS VIR AANSPREEKLIKHEDE (vervolg) R 000 R 000 Wanaanwending van surplusse Die bedrag verteenwoordig die verwagte verpligting, volgens aktuariële waardasie rakende die onbehoorlike aanwending van pensioenfonds-surplusse in die verlede. Langtermyn aansporingskema n Langtermyn aansporingskema om vergoeding te bepaal vir prestasie het in effek gekom in die finansiële jaar. Hierdie langtermyn aansporingskema het ten doel om prestasie te bestuur volgens Direksie se strategieë. Die langtermyn aansporingskema behels spesifieke ooreengekome doelwitte en word uitsluitlik op diskresie van die Direksie toegeken. Die langtermyn aansporingskema behels dat, oor twee tydperke soos ooreengekom, daar 'n toekenningsbedrag bepaal word wat aan die einde van elke termyn betaalbaar is. Uitbetalings onder die langtermyn aansporingskema is onderworpe aan voorwaardes waarop ooreengekom is met die Direksie. Rehabilitasie van myngrond Voorsiening is gemaak vir die rehabilitasie van die myn-area, gebaseer op tegniese advies en Bestuur se ramings. Die rehabilitasieproses gaan voort en uitgawes word teen inkomste gedebiteer soos dit aangegaan word. Die voorsiening is vir die oop myn-gedeelte wat nie tans gerehabiliteer kan word nie (ingevolge IFRS Interpretasie IFRIC 1). Langtermyn verpligting 1, Korttermyn verpligting 7,392 5, PROVISIONS FOR LIABILITIES (continued) Misappropriation of surpluses The amount represents the expected liability, according to actuarial valuation regarding the misappropriation of pension fund surpluses in the past. Long-term incentive scheme A long-term incentive scheme to determine remuneration for performance came into effect during the financial year. This long-term incentive scheme aims to manage performance in accordance with the Board's strategies. The long-term incentive scheme involves specific agreed objectives and is awarded in the sole discretion of the Board. The long-term incentive scheme entails that, over two periods as agreed, an allotted amount is determined that is payable at the end of each term. Payments under the long-term incentive scheme are subject to conditions as agreed on with the Board. Rehabilitation of mining land Provision was made for the rehabilitation of the mine area, based on technical advice and estimates by Management. The rehabilitation process continues and expenditure is debited against income as incurred. The provision is for the open-cast mine section that cannot be rehabilitated at present. (under IFRS Interpretation IFRIC 1). Long-term liability Short-term liability 8,740 6, INKOMSTE Verkoop van goedere 1,087, ,630 Lewering van dienste en ander 33,023 37, INCOME Sale of goods Supply of services and others 1,120, ,917 Inkomste sluit in voorraadverkope, silodiensheffings, arbeid verkoop, dienste gelewer en kommissie op korttermynversekering ontvang. 26 RENTE-INKOMSTE Rente gehef op debiteure 23,384 17,789 Rente gehef op huurkope 4,392 3,695 Rente gehef op gars 10,349 - Rente ontvang van Suid-Afrikaanse Inkomstediens Income includes sales of inventory, silo service levies, labour sold, services rendered and commission received on short-term insurance. 26 INTEREST INCOME Interest charged on debtors Interest charged on hire-purchases Interest charged on barley Interest received South African Revenue Service 38,295 22,241 84

89 27 ANDER INKOMSTE - GROEP R 000 R 000 Beleggingsinkomste Dividende ontvang 18,003 16,442) Bonusse ontvang 7 6) Huur-inkomste Beleggingseiendom 711 1,023) Ander eiendom ) Voertuie, masjinerie en toerusting 62 4) Oninbare skuld verhaal 27 1,107) Ander 2,945 1,871) 27 OTHER INCOME - GROUP Investment income Dividends received Bonuses received Rental income Investment property Other property Vehicles, machinery and equipment Uncollectable debt recovered Other 22,217 20,822) ANDER INKOMSTE - MAATSKAPPY Dividende ontvang 7,550 6,291) 28 FINANSIERINGSINKOMSTE Rente ontvang - bank ) 29 ITEMS VAN 'N KAPITALE AARD Netto wins met verkoop van eiendom, aanleg, voertuie en toerusting 2,668 12,671) Netto verlies met verkoop van filiaal - (790) Netto wins met verkoop van beleggings ) Waardedalings in beleggings - (29) Terugskryf van waardedaling op silo's 1,081 1,114) OTHER INCOME - COMPANY Dividends received 28 FINANCING INCOME Interest received bank 29 ITEMS OF A CAPITAL NATURE Net profit on sale of property, plant, vehicles and equipment Net loss on sale of subsidiary Net profit on sale of investments Impairments in investments Reversal of impairment on silos 4,711 13,023) 30 BEDRYFSWINS Die volgende items is gedebiteer/(gekrediteer) in die berekening van bedryfswins: Waardevermindering 10,932 8,745) Amortisasie 2,179 1,732) Personeelkoste 77,399 54,044) Salarisse en lone 60,582 45,796) Ander koste 5,550 2,321) Prestasievergoedingskema 5,049 -) Aftreevoordeelkoste 6,218 5,926) Ouditeursvergoeding Ouditgelde vir statutêre ouditwerk 2,754 3,951 - huidige jaar voorsiening 2,364 2,026) - ondervoorsiening vorige jaar ) Ander gelde betaal aan ouditeure van die Groep Bestuur adviserende dienste ) Ander dienste - 902) Belasting adviserende gelde ) 30 OPERATING PROFIT The following items were debited/(credited) in calculating operating profit: Depreciation Amortisation Employee costs Salaries and wages Other costs Performance incentive scheme Retirement benefit costs Auditors' remuneration Audit fees for statutory auditing - current year provision - underprovision previous year Other fees payed to auditors of the Group Management advisory services Other services Tax advisory fees 85

90 30 BEDRYFSWINS (vervolg) R 000 R 000 Voorsiening vir afskrywing van voorraad na netto realiseerbare waarde 343 (4,385) Afskrywing van voorraad - 4,114) Opbrengs met die oes van biologiese bates (2,164) (1,244) Aanpassing van billike waarde van biologiese bates (26) (113) Huur betaal 1,186 1,157) Voorsiening vir oninbare skulde ) UITGAWES VOLGENS AARD Waardevermindering, amortisasie en waardedalings 12,211 11,041) Werknemer-vergoeding en voordeeluitgawe 88,232 60,277) Veranderinge in voorraad van klaarprodukte en werk-in-proses (138,197) (125,827) Aankope van goedere 1,087, ,500) Onderhoud en herstelwerk 8,701 7,756) Ouditvergoeding 2,754 3,951) Ander uitgawes 29,789 27,486) Totale koste van goedere verkoop, bemarking en verspreidingskostes, ander bedryfsuitgawes, administrasiekostes en items van 'n kapitale aard (deur die Inkomstestaat). 1,090, ,184) 31 FINANSIERINGSKOSTE Bruto rente betaal oortrokke bank en Landbank 25,698 19,766) afbetalingsverkoopsooreenkomste 4,734 2,123) ander 13,066 1,959) 43,497 23,848) Min: leenkoste gekapitaliseer gars 7,907 - afbetalingsverkoopsooreenkomste 1,230 1,164 saad OPERATING PROFIT (continued) Provision for write-off of stock to net realisable value Write-off of stock Proceeds from the harvesting of biological assets Ajustment of fair value of biological assets Rent payed Provision for bad debts EXPENDITURE BY NATURE Depreciation, amortisation and impairments Employee remuneration and benefits exenditure Changes in inventory of finished products and work-in-progress Purchase of goods Repairs and maintenance Audit remuneration Other expenditure Total cost of goods sold, marketing and distribution costs, other operating expenditure, administrative costs and items of a capital nature (through the Income Statement). 31 FINANCING COSTS Gross interest paid bank overdraft and Land Bank instalment sale agreements other Less: borrowing cost, capitalised barley instalment sale agreements seed 9,681 1,164 Netto rente betaal oortrokke bank en Landbank 25,698 19,766 afbetalingsverkoopsooreenkomste 3, ander 4,614 1,959 Netto finansieringskoste 33,816 22,684 Leenkoste gekapitaliseer is toeskryfbaar aan afbetalingverkoopsooreenkomste spesifiek aangegaan ten opsigte van kwalifiseerende bates (verwys aantekeninge 4 en 15). Net interest paid overdraft and Land Bank instalment sale agreements other Net financing costs Borrowing costs capitalised are attributable to instalment sale agreements specifically concluded in respect of qualifying assets (refer notes 4 and 15). 86

91 32 BELASTING R 000 R 000 SA Normale belasting Huidige jaar 9,991 2,964 Netto ondervoorsiening vorige jare - (241) Uitgestelde belasting Huidige jaar (680) 2,855 Koersaanpassing van uitgestelde belasting TAXATION SA Normal taxation Current year Net underprovision previous years Deferred taxation Current year Rate adjustment of deferred tax 9,361 5,578 Rekonsiliasie van belastingkoers (%) % % Standaardkoers ) Aangesuiwer vir: koersaanpassing ) nie belasbare inkomste (10.43) (16.90) nie toelaatbare uitgawes ) vorige jaar aanpassings ) kapitaalwinsbelasting ) kapitaalwins nie belasbaar (0.83) (5.95) ander permanente verskille 0.18 (0.36) sekondêre belasting op maatskappye - -) uitgestelde belasting nie voorsien ) aanwending van aangeslane verlies (5.97) -) Effektiewe koers 16.28) 13.53) 33 NIE-KONTANTVLOEI EN ANDER ITEMS R 000 R GROEP Dividende en bonusse ontvang (18,010) (16,448) Nie-kontantvloei vanaf geassosieerde -) (67) Rente ontvang (39,090) (23,634) Rente ontvang SAID (170) -) Rente betaal SAID 30) -) Rente betaal 33,816) 22,685) Amortisasie 2,179) 1,732) Waardevermindering 10,932) 8,745) Waardestyging op vaste bates (1,080) (1,114) Waardedaling op beleggings -) 29) Wins met verkoop van vaste bates (2,659) (12,671) Wins met verkoop van belegging (1 018) (56) Verandering in billike waarde van biologiese bates (26) (113) Voorsiening vir prestasievergoeding 6,507) -) Voorsiening vir winsbonus 1,250) 5,000) Reconciliation of taxation rate (%) Standard rate Adjusted for: rate adjustment non-taxable income non-allowable expenditure previous year adjustments capital gains taxation capital gains not taxable other permanent differences secondary taxation on companies deferred taxation not provided for utilisation of assessed loss Effective rate 33 NON-CASH FLOW AND OTHER ITEMS - GROUP Dividends and bonuses received Non-cash flow from associate Interest received Interest received - SAID Interest paid - SAID Interest paid Amortisation Depreciation Increase in value of fixed assets Impairment of investments Profit on sale of fixed assets Profit on sale of investment Change in fair value of biological assets Provision for performance incentive Provision for profit bonus 87

92 33 NIE-KONTANTVLOEI EN ANDER ITEMS R 000 R GROEP Voorsiening vir langtermyn aansporingskema 1,128) -) Voorsiening vir wanaanwending van surpluswetgewing 1,448) 1,135) Voorsiening vir rehabilitasie van die myngrond 41) -) Voorsiening na-aftrede mediese voordele (784) (134) Voorsiening vir aftreegratifikasie 363) -) Voorsiening vir stadigbewegende voorraad 343) (4,385) Voorsiening vir oninbare skulde 180) 860) Afskrywing op voorraad -) 4,114) Slegte skuld afgeskryf 153) 552) Afskryf van belegging -) 2) Beweging op afgeleide finansiële instrument -) (47) (4,466) (13,818) NIE-KONTANTVLOEI EN ANDER ITEMS - MAATSKAPPY Dividende ontvang 7,550) 6,291) 34 BEDRYFSKAPITAAL-VERANDERINGE Bewegings in bedryfskapitaal: Toename in voorraad 112,493) 125,527) Toename in debiteure 50,721 51,132) Afname in krediteure (65,447) (5,232) 33 NON-CASH FLOW AND OTHER ITEMS - GROUP Provision for long-term incentive scheme Provision for misappropriation of surplus legislation Provision of the rehabilitation of the mining land Provision for post-retirement medical benefits Provision for retirement gratification Provision for slow-moving inventory Provision for uncollectable debts Write-off on inventory Bad debt written off Write-off of investment Movement on derivative financial instrument NON-CASH FLOW AND OTHER ITEMS - COMPANY Dividends received 34 CHANGES IN OPERATING CAPITAL Movements in operating capital: Increase in inventory Increase in debtors Decrease in creditors 97,766) 171,427) 35 DIVIDENDE BETAAL - GROEP Saldo aan die begin van die tydperk -) -) Verdeling volgens die staat van verandering in ekwiteit 7,043) 5,691) Saldo aan die einde van die tydperk -) -) 35 DIVIDENDS PAID - GROUP Balance at the beginning of the period Distribution according to the statement of changes in equity Balance at the end of the period Overberg Agri Beperk het 'n dividend van 90c per aandeel verklaar en betaal gedurende die finansiële jaar. DIVIDENDE BETAAL - MAATSKAPPY 7,043) 5,691) Overberg Agri Limited declared and paid a dividend of 90c per share during the financial year. DIVIDENDS PAID - COMPANY Verdeling volgens die staat van verandering in ekwiteit 7,550) 6,291) Overberg Agri Beperk het 'n dividend van 90c per aandeel (2007: 75c per aandeel) verklaar en betaal gedurende die finansiële jaar. 36 BELASTING BETAAL Saldo aan die begin van die tydperk (9,769) (19,721) Lopende belasting volgens die Inkomstestaat 9,991) 2,723) Rente voorsien (140) -) Saldo aan die einde van die tydperk 2,362) 9,769) Distribution according to the statement of changes in equity Overberg Agri Limited declared and paid a dividend of 90c per share (2007: 75c per share) during the financial year. 36 TAXATION PAID Balance at the beginning of the period Current tax according to the Income Statement Interest provided Balance at the end of the period 2,444) (7,229) 88

93 37 KONTANT EN KONTANTEKWIVALENTE R 000 R 000 KONTANTVLOEISTAAT Bank en kontant (aantekening 17) 78,571) 8,816) Oortrokke (aantekening 22) (531) (3,108) 37 CASH AND CASH EQUIVALENTS - CASH-FLOW STATEMENT Bank and cash (note 17) Overdraft (note 22) 78,040) 5,707) 38 VOORWAARDELIKE AANSPREEKLIKHEID Risiko op graan 339,259) 177,181) Waarborg - Bontebok Lime Works (Edms) Bpk 10,000) 10,000) 38 CONTINGENT LIABILITY Risk on grain Guarantee - Bontebok Lime Works (Pty) Ltd 349,259) 187,181) Overberg Agri Groep het 'n waarborg van R10 miljoen verskaf aan Wesbank ten opsigte van afbetalingsverkoopsooreenkomste op die hidroksiedaanleg van Bontebok Lime Works (Edms) Beperk. Bontebok Lime Works (Edms) Beperk se finansiële posisie is gesond en die verpligtinge waarop die waarborg van toepassing is, is vooruitbetaal. Bontebok Lime Works (Edms) Beperk besit ook volgens die oordeel van Bestuur die kapasiteit om die toekomstige verpligtinge tydig na te kom. Bestuur het die billike waarde van die waarborg oorweeg en gevind dat die billike waarde R nul is. Die risiko op graan is ten opsigte van die potensiële aanspreeklikheid teenoor derde partye vir wie graan op jaareinde gestoor word. Versekeringsdekking vir brandskade ter waarde van R350,000,000 (2007: R201,000,000) bestaan. 39 KAPITAALVERPLIGTINGE Eiendom, aanleg en toerusting Bedrae goedgekeur - Gekontrakteer 50 11,075 - Nie gekontrakteer - 13,589 Overberg Agri Group provided a guarantee of R10 million to Wesbank in respect of instalment sales agreements on the hidroxy plant of Bontebok Lime Works (Pty) Limited. Bontebok Lime Works (Pty) Limited's financial position is sound and the liabilities which the guarantee apply to have been prepaid. Bontebok Lime Works (Pty) Limited, in the opinion of Management, also has the capacity to meet the future liabilities in time. Management have considered the fair value of the guarantee and found that the fair value was R zero. The risk on grain is in respect of the potential liability towards third parties for whom grain is stored at yearend. Insurance cover for fire damage to the amount of R350,000,000 (2007: R201,000,000) exists. 39 CAPITAL OBLIGATIONS Property, plant and equipment Amounts approved - Contracted - Not contracted 50 24,664 Ontasbare bates Bedrae goedgekeur - Gekontrakteer 1, Nie gekontrakteer - - Intangible assets Amounts approved - Contracted - Not contracted 1,500 - Hierdie bedrae sal uit eie of geleende fondse gefinansier word, gekontrakteerde bedrae bestaan hoofsaaklik uit die aankoop van 'n versekeringsboek. These amounts will be financed from own or borrowed funds, contracted amounts consist mainly of the acquisition of an insurance book. 89

94 40 WAARBORGE R 000 R 000 Die volgende waarborge is verskaf deur ABSA Bank: Wes-Kaapse Streeksdiensteraad Perishable Products Export Control Board 4 4 Kaapse Metropolitaanse Raad GUARANTEES The following guarantees were provided by ABSA Bank: Western Cape Regional Services Board Perishable Products Export Control Board Cape Metropolitan Board VERPLIGTINGE Die Groep beskik oor die volgende verpligtinge ten opsigte van gehuurde eiendom: Binne 1 jaar 97 - Binne 2-5 jaar Totale toekomstige huurverpligtinge BESIGHEIDSAMEVOEGING (IFRS 3) Verkryging van totale bates en laste van Boltfast (Edms) Beperk Die totale bates en laste van die maatskappy Boltfast (Edms) Bpk is op 1 November 2007 bekom vir 'n bedrag van R95,578,420. Die totale koopsom is in kontant betaal. Ingesluit in die koopsom is 'n bedrag van R46,177,916 wat betaal is vir ontasbare bates soos uiteengesit in aantekening 6. Die Maatskappy dryf handel as verspreider van industriële vashegters in die Wes-Kaap. 41 OBLIGATIONS The Group has the following liabilities in respect of rented properties: Within 1 year Within 2-5 years Total future rental liabilities 42 BUSINESS COMBINATION (IFRS 3) Acquisition of total assets and liabilities of Boltfast (Pty) Limited The total assets and liabilities of the company Boltfast (Pty) Ltd were acquired on 1 November 2007 for an amount of R95,578,420. The total purchase price was paid in cash. Included in the purchase price was an amount of R46,177,916 paid for intangible assets as set out in note 6. The Company trades as a distributor of industrial fasteners in the Western Cape. Die bates en laste soos op 1 November 2007, die datum van verkryging, kan soos volg opgesom word: Boltfast (Edms) Beperk Bates: Billike Drawaarde waarde by by verkryging verkryging Fair Carrying value at value at acquisition acquisition R 000 R 000 The assets and liabilities as at 1 November 2007, the date of acquisition, may be summed up as follows: Boltfast (Pty) Limited Assets: Eiendom, aanleg en toerusting 19,202) 19,202) Vooraad 20,805) 20,805) Handelsdebiteure 13,494) 13,494) Ontasbare bates Kliënteverhoudinge 6,784) -) Handelsmerke 5,381) -) Property, plant and equipment Inventory Trade debtors Intangible assets Client relations Trademarks 90

95 42 BESIGHEIDSAMEVOEGING (IFRS 3) (vervolg) Laste: Uitgestelde belasting (1,678) -) Voorsienings en krediteure (2,423) (2,423) 42 BUSINESS COMBINATIONS (IFRS 3) (continued) Liabilities: Deferred taxation Provisions and creditors 61,565) 51,078) Koopprys 95,578) Ontasbare bates - Klandisiewaarde (34,013) Die klandisiewaarde is toeskryfbaar aan die winsgewendheid van die besigheid wat bekom is. Impak op kontantvloei Aankoopprys vereffen in kontant 95,578) Kontant en kontantekwivalente oorgeneem met besigheidsamevoeging -) Kontantvloei uitbesigheidsamevoeging 95,578) 42.2 Verkryging van totale bates en laste van Toyota Agentskap in Bredasdorp Bredasdorp Toyota-agentskap is op 31 Augustus 2007 bekom vir 'n bedrag van R10,878,912. Purchase price Intangible assets - Goodwill The goodwill is attributable to the profitability of the business acquired. Impact on cash flow Purchase price settled in cash Cash and cash equivalents taken over on business combinations Cash flow from business combination 42.2 Acquisition of total assets and liabilities of Bredasdorp Toyota Dealership The Toyota dealership was acquired on 31 August 2007 for an amount of R10,878,912. Die koopsom is vereffen deur middel van die lenings vanaf ABSA Bank en die Groep (aantekening 22). Die besigheidsaktiwiteite van hierdie maatskappy behels die bedryf van 'n Toyota-motorhandelaarskap en herstelwerke. Die bates en laste soos op 31 Augustus 2007, die datum van verkryging, kan soos volg opgesom word: Toyota Agentskap in Bredasdorp Bates: Billike Drawaarde waarde by by verkryging verkryging Fair Carrying value at value at acquisition acquisition R 000 R 000 The purchase price was settled by means of borrowings from ABSA Bank and the Group (note 22). The business activities of this company involve operating a Toyota motor dealership and repair works. The assets and liabilities as at 31 August 2007, the date of acquisition, may be summed up as follows: Toyota Dealership in Bredasdorp Assets: Eiendom, aanleg en toerusting 623) 623) Voorraad 5,355) 5,355) Handelsmerk 5,000) -) Property, plant and equipment Inventory Trademark 91

96 42 BESIGHEIDSAMEVOEGING (IFRS 3) Billike Drawaarde waarde by by (vervolg) verkryging verkryging Fair Carrying value at value at Laste: acquisition acquisition Uitgestelde belasting (1,372) -) Voorsienings en aanspreeklikhede (99) (99) 42 BUSINESS COMBINATIONS (IFRS 3) (continued) Liabilities: Deferred taxation Provisions and liabilities 9,507) 5,879) Koopprys 10,879) Ontasbare bates - Klandisiewaarde (1,372) Die klandisiewaarde is te wyte aan die winsgewendheid van die besigheid bekom en die verwagte sinergieë na die besigheidsamevoeging. Impak op kontantvloei Aankoopprys vereffen in kontant 10,879) Kontant en kontantekwivalente oorgeneem met besigheidsamevoeging -) Kontantvloei uit besigheidsamevoeging 10,879) Purchase price Intangible assets - Goodwill The goodwill is attributable to the profitability of the business acquired and the expected synergies following the business combinations. Impact on cash flow Purchase price settled in cash Cash and cash equivalents taken over upon business combinations Cash flow from business combinations 43 VERWANTE PARTY-TRANSAKSIES - MAATSKAPPY Korttermynlenings aan verwante partye R 000 R RELATED-PARTY TRANSACTIONS - COMPANY Short-term borrowings to related parties - Overberg Agri Bedrywe (Edms) Bpk 26) 26) Beleggings in filiale - Overberg Agri Bedrywe (Edms) Bpk Overberg Agri Beleggings (Edms) Bpk 187, ,504 - Overberg Agri Bedrywe (Pty) Ltd Investments in subsidiaries - Overberg Agri Bedrywe (Pty) Ltd - Overberg Agri Beleggings (Pty) Ltd 187, ,296 Beleggings in filiale word in Bylae A geopenbaar. Direkteursvergoeding Vergoeding vir dienste as direkteure betaal deur filiaalmaatskappye: Uitvoerende Direkteure 5,924 1,771 Nie-uitvoerende Direkteure 1,061 1,327 Sleutelpersoneel Die salarisse van sleutelpersoneel, soos deur Bestuur geïdentifiseer en deur filiaalmaatskappye betaal, is soos volg: Korttermyn werknemervoordele: 2,417 3,441 Investments in subsidiaries are disclosed in Annexure A. Directors remuneration Remuneration for services as directors paid by subsidiaries: Executive Directors Non-executive Directors Key personnel The salaries of key personnel as identified by Management, are as follows: Short-term employee benefits 92

97 44 VERANDERING IN REKENINGKUNDIGE BELEID IAS 23 (hersien), Leenkoste (effektief 1 Januarie 2009) is ingevolge 'n besluit deur die Maatskappy vroeg aanvaar en toegepas op die 2008-finansiële jaar. Die impak van die verandering in rekeningkundige beleid is dat die Maatskappy leenkoste moet kapitaliseer op alle kwalifiserende bates. Die Maatskappy beskou 'n drie maande-periode as 'n wesenlike periode van tyd om sekere graan in 'n toestand gereed vir gebruik te kry. Dit is die Maatskappy se mening aangesien daar by gars 'n dormansieperiode voor ontkieming voorkom. In die geval van saad kom daar 'n dormansie-periode, skoonmaak- en chemiese behandelingproses voor. Vir ander bates is dit die Maatskappy se mening dat 'n ses maande-periode 'n wesenlike periode van tyd verteenwoordig om bates in 'n toestand gereed vir gebruik te kry. Daar was geen ander bates wat ses maande en langer geneem het om in 'n toestand gereed vir gebruik te bereik nie. Die verandering in rekeningkundige beleid is dus oorweeg ten opsigte van gars en saad. Die oorgangsbepalings van IAS 23 (hersien) bepaal dat kapitalisering slegs gedoen moet word vanaf die datum waarop die standpunt in werking tree of die datum waarop die Maatskappy besluit het om die standpunt vroeg te aanvaar. Geen terugwerkende aanpassing moet dus aan die vergelykende syfers van die finansiële state gemaak word nie. Die effek van die verandering in die rekeningkundige beleid word dus in huidige en toekomstige periodes weerspieël (verwys aantekening 15). 45 VERGELYKENDE SYFERS Vergelykende syfers is geherklassifiseer waar nodig om beter en meer betekenisvolle vergelyking van resultate moontlik te maak soos uiteengeset in die betrokke aantekenings tot die finansiële state. 44 CHANGE IN ACCOUNTING POLICY IAS 23 (revised), Borrowing costs (effective 1 January 2009) was adopted early and applied to the 2008 financial year in accordance with a resolution by the Company. The impact of the change in accounting policy is that the Company has to capitalise borrowing costs on all qualifying assets. The Company view three months as a substantial period to bring certain grain to a condition ready for use, based on the fact that barley has a dormancy period before germination. In the case of seed there is a dormancy period as well as a cleaning and chemical treatment process. For other assets it is the Company's opinion that a six-month period represents a material period to get assets ready for use. There were no other assets that took six months and longer to reach a condition ready for use. The change in accounting policy was therefore considered in respect of barley and seed. The transitional provisions of IAS 23 (revised) determine that capitalisation may only be done from the date on which the standard becomes effective or from the date on which the Company decided to adopt the standard early. No retrospective adjustment need therefore be made to the comparative figures in the financial statements. The effect of the change in the accounting policy is therefore reflected in current and future periods (refer note 15). 45 COMPARATIVE FIGURES Comparative figures have been reclassified where necessary to enable a better and more meaningful comparison of results as set out in the relevant notes to the financial statements. 93