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Integrated Report 2016
ANNUAL FINANCIAL STATEMENTS
(continued)
SIX
THREE
ONE
FOUR
TWO
20. NON-DISTRIBUTABLE RESERVES
(continued)
Capital redemption reserve
The capital redemption reserve was created as a result of revaluation of shares in subsidiaries.
Foreign currency translation reserve
The foreign currency translation reserve comprises all foreign exchange differences arising from the
translation of the financial statements of foreign operations.
Legal reserves and other
This represents:
–– an unutilised merger reserve when Premier Pharmaceuticals and Adcock Ingram merged;
–– share issue expenses incurred by Adcock Ingram Healthcare Private Limited (India);
–– actuarial losses on the Group’s post-retirement medical liability; and
–– a fair value adjustment on the Group’s investment in Group Risk Holdings Proprietary Limited
(refer to note 13.2).
21. LONG-TERM BORROWINGS
Unsecured
C&F Agency – India
(1)
–
4 989
Secured
Nedbank
(2)
500 000
500 000
Stannic – Critical Care Owner Driver Companies
(3)
–
11 398
Stanbic – Ghana
(4)
–
10 639
500 000
527 026
Less: Current portion included in short-term borrowings
–
(13 273)
500 000
513 753
(1)
These unsecured loans bear interest at rates varying between 7.5% and 9.0% per annum and are repayable upon termination of
C&F Agency contracts in India.
(2)
A secured loan, bearing interest at JIBAR* plus 176 basis points. Interest is payable quarterly in arrears and the capital is due for
repayment in December 2018. During the prior year a voluntary repayment of R500 million was made out of surplus cash resources.
The shares in wholly-owned South African companies in the Group are pledged as security for this loan. Financial covenants, including
a Net debt: EBITDA ratio and interest cover ratio are applicable over this loan and have been complied with during the year.
(3)
These secured loans incurred interest at 60 basis points below the Prime lending rate** and were repayable over a period of
60 months, but were settled in April 2016. The Group preferred to provide direct assistance to the Critical Care owner drivers in order
to qualify for additional Enterprise and Supply Development spend for BBBEE.
(4)
This secured loan bears interest at the Stanbic Bank Base Rate (***) + 400 basis points and is repayable within 12 months.
Property, plant and equipment were pledged as security for this loan. Refer to note 10.
Loans (1) and (4) have been transferred to assets held-for sale during the current year. Refer to note 2.2.
* JIBAR – Johannesburg Interbank Agreed Rate. On 30 June 2016: 7.30% (2015: 6.133%)
** Prime lending rate on 30 June 2016: 10.50% (2015: 9.25%)
*** Stanbic Bank Base Rate (Ghana) on 30 June 2016: 23.07% (2015: 25.10%)
2016
R’000
2015
R’000