ANNUAL REPORT 2001
 
   
   
   
   
   
   
  NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
 
FOR THE YEAR ENDED 31 MARCH 2001
     
  1. PROPERTY, PLANT AND EQUIPMENT
   
    2001     2000  
 
 
Cost or 
Accumulated 
Net 
Cost or 
Accumulated 
Net 
 
valuation 
depreciation 
value 
valuation 
depreciation 
value 
 
R million 
R million 
R million 
R million 
R million 
R million 
Leasehold            
   improvements 0.9  0.3  0.6  0.9  0.2  0.7 
Machinery and            
   equipment 2.0  1.7  0.3  1.8  1.3  0.5 
Vehicles 0.3  0.2  0.1  0.4  0.2  0.2 
Office equipment 0.2  0.1  0.1  •  •  • 
  3.4  2.3  1.1  3.1  1.7  1.4 
    *Amounts smaller than R50 000
   
  2001 2000 
Depreciation rates are as follows:
 % % 
     
Leasehold improvements 5 – 10  5 – 10 
Machinery and equipment 162/3 – 331/3  162/3 – 331/3 
Vehicles 20  20 
Office equipment 162/3 – 331/3  162/3 – 331/3 
     
    Reconciliation of carrying value at
    the beginning and end of the year
   
    Machinery         
  Leasehold  and    Office     
  improvements  equipment  Vehicles  equipment  2001  2000 
  R million  R million  R million  R million  R million  R million 
Balances at            
   beginning of            
   the year 0.7  0.5  0.2  •  1.4  1.9 
Additions •  0.1  –  0.1  0.2  0.1 
Depreciation (0.1) (0.3) (0.1)  •  (0.5) (0.6)
 
Balances at end            
   of the year 0.6  0.3  0.1  0.1  1.1  1.4 
 
* Amounts smaller than R50 000        
             
  2. GOODWILL AND PATENTS
   
  2001     2000   
  Cost or  Accumulated  Net  Cost or  Accumulated  Net 
  valuation  amortisation  value  valuation  amortisation  value 
  R million  R million  R million  R million  R million  R million 
Goodwill 135.6  4.0  131.6  –  –  – 
Patents 0.3  0.1  0.2  0.2  *  0.2 
  135.9  4.1  131.8  0.2  *  0.2 
   
  2001 2000
Amortisation rates are as follows: % %
Goodwill 5 –
Patents 10 10
     
   
Reconciliation of carrying value at
Goodwill  Patents  2001  2000 
the beginning and end of the year
 R million  R million  R million  R million 
Balances at the beginning of the year –  0.2  0.2  0.1 
Additions 135.6  0.1  135.7  0.1 
Amortisation (4.0) (0.1) (4.1) • 
 
Balances at the end of the year 131.6  0.2  131.8  0.2 
 
* Amounts smaller than R50 000        
 
  3. INVESTMENTS – ASSOCIATED COMPANIES
 
(Annexures B & C)
   
 
2001
   2000  
 
  Listed  Unlisted  Total  Listed  Unlisted  Total 
  R million  R million  R million  R million  R million  R million 
Shares – at cost after            
   allowing for goodwill 12.1  3 240.8  3 252.9  –  59.2  59.2 
Equity adjustment 0.7  864.1  864.8  –  1 186.1  1 186.1 
 
Carrying value 12.8  4 104.9  4 117.7  –  1 245.3  1 245.3 
Long-term loans –  145.2  145.2  –  173.4  173.4 
  12.8  4 250.1  4 262.9  –  1 418.7  1 418.7 
Market value of listed investments 106.9    106.9  –     – 
Directors' valuation of        
   unlisted investments   9 934.4  9 934.4    10 278.9  10 278.9 
Market value and directors' valuation 106.9  9 934.4  10 041.3  –  10 278.9  10 278.9 
Excess of market value and directors'
   valuation over the book value of
   investments and appropriate goodwill:
       
   – attributable to own members
   5 658.6      8 860.2 
 
   
         
2001 
R million 
Reconciliation of carrying value at the beginning and end of the year
  
Carrying value at the beginning of the year
1 245.3 
Prior year adjustment
 2 336.7 
Exchange rate differences on translation of carrying value at beginning
 
    of the year to year-end rate
 76.0 
Equity of associated companies retained
 412.9 
  Share of net profit of associated companies
 465.7 
  Dividends
 (66.2)
  Exchange rate differences on translation between average rate and year-end
 
     rates
 13.4 
Other movements
 11.1 
Additions to investments
35.7 
Carrying value at the end of the year
 4 117.7 
Amount of the share in net profit after exceptional items and amortisation, retained by associated
 
   companies that has been accounted for from unaudited interim reports and management reports
 0.8 
 
  4. INVESTMENTS – OTHER
    (Annexure B)
 
                             2001 
                            2000 
 
  Listed Unlisted  Total  Listed Unlisted  Total 
  R million R million  R million  R million  R million  R million
Long-term investments:
           
   Shares – at cost
 1 196.8  32.3  1 229.1  1 085.1  60.0  1 145.1
Portfolio investments
           
   Marketable securities –  –  –  79.6  –  79.6
Loans –  206.0  206.0  –  –  –
1 196.8  238.3  1 435.1  1 164.7  60.0  1 224.7
 
Market value of listed
      
   investments
      
   Long-term
      investments 		1 807.9    1 807.9  1 718.9    1 718.9
   Portfolio investments
–  –  80.3  80.3
Directors' valuation of
   unlisted investments
            
   Long-term
      investments  and
           
      loans
 238.3  238.3  60.0  60.0
 
Market value and directors' valuation
 1 807.9  238.3  2 046.2  1 799.2  60.0  1 859.2
 
Excess of market value and
   directors' valuation over the
   book value of investments and
   appropriate goodwill:
   – attributable to own members
   611.1      634.5
      
    
   
 
5.
  2001  2000 
INVENTORIES
R million 
 R million 
 
Raw materials 0.9  0.5 
Finished products 1.0  0.9 
Work in progress 0.2  0.1 
Consumable stores 0.2  0.2 
 
 
2.3 
 1.7 
 
   
A notarial bond of R1.0 million (2000: R1.0 million) over inventory serves
   as security for the bank overdrafts. Refer to note 9.
     
 
 
6.
  2001  2000 
TRADE AND OTHER RECEIVABLES
R million 
 R million 
 
Trade and other receivables 240.5  15.4 
Interest-free loan –  653.6 
 
 
240.5 
 669.0
 
Trade debtors to the amount of R3.9 million (2000: R1.3 million)  
   are ceded to the bank as security for the bank overdrafts.  
   Refer to note 9.  
     
 
 
7.
  2001  2000 
SHARE CAPITAL R million  R million 
Authorised    
512 493 650 Ordinary shares of 1 cent each 5.1  5.1 
  40 506 352 B ordinary shares of 10 cents each 4.1  4.1 
 
 
9.2 
 9.2 
 
Issued    
486 493 650 Ordinary shares of 1 cent each 4.9  4.9 
  35 506 352 B ordinary shares of 10 cents each 3.5  3.5 
 
  8.4  8.4 
 
    Each ordinary share has one vote.
    Each B ordinary share has ten votes.
   

The unissued capital of the Company consists of 26 000 000 ordinary shares and 5 000 000 B ordinary shares that have both been reserved for the VenFin Share Scheme. At a general meeting, the Company has placed these shares under the control of the Board of Directors of the Company as a general authority in terms of section 221(2) of the Companies Act, 1973 (Act 61 of 1973), as amended (the Act), subject to the provisions of the Act and the Rules and Requirements of the JSE until the next Annual General Meeting of the Company, for allotment and issue to such persons and on such conditions as the Directors may deem fit.
     
    Refer to the Report of the Board of Directors for details of offers to participants of the
VenFin Share Scheme.
 
 
8.
RESERVES – also refer to the statement of changes in equity    
  2001  2000 
8.1 Reserves R million  R million 
 
      Included in general capital reserves are:
    
         Statutory non-distributable reserves
49.7 
40.6
 
   
    8.2 Included in the respective reserves are reserves arising on exchange
            rate translation.
   
     Composition:
   
  General  Equity  Un-     
  capital  accounted  appropriated  2001  2000 
  reserves  reserves  profit  Total  Total  
  R million  R million  R million  R million  R million 
      Balances at 1 April 193.0  12.0  194.0  399.0  359.0 
      Exchange rate adjustments during          
         the year 103.8  76.0  55.1  234.9  40.0 
      Transfer of equity adjustments   13.4  (13.4) –  – 
 
      Balances at 31 March 296.8  101.4  235.7  633.9  399.0 
 
   
  2001  2000 
8.3 Composition of reserves R million  R million 
 
      The Company 5 053.8  5 032.1 
         Non-distributable reserves 21.6  21.6 
         Distributable reserves 5 032.2  5 010.5 
      Subsidiary companies 1 078.3  (2 253.4)
         Non-distributable reserves 564.2  454.1 
         Distributable reserves 514.1  (2 707.5)
      Associated companies:    
         Non-distributable reserves 864.8  1 186.1 
 
 
6 996.9 
 3 964.8
 
 
 
9.

2001  2000 
SHORT-TERM INTEREST-BEARING LOANS R million  R million 
 
Long-term interest bearing loans payable    
   within one year 0.1  0.2 
Bank overdrafts 5.5  3.3 
 
 
5.6 
 3.5 
 
    The bank overdrafts are secured as follows:
   
– Trade debtors of R3.9 million (2000: R1.3 million) ceded.
   
– A notarial bond of R1.0 million (2000: R1.0 million) over inventories.
 
 


10.