210 / 276
ANNUAL FINANCIAL STATEMENTS
Notes to the financial statements
continued
for the year ended 30 September 2014
208
Tiger Brands Limited Integrated Annual Report
2014
33 Group commitments
continued
33.4 Commitments in respect of finance leases
The group has finance leases for various items of plant and machinery. These leases have terms of
renewal with a purchase option and are linked to the prime interest rate. Renewals are at the option of
the specific entity that holds the lease. Future minimum lease payments under finance leases, together
with the present value of the net minimum lease payments, are as follows:
GROUP
2014
Restated*
2013
(R’million)
Minimum
payments
Present value
of payments
Minimum
payments
Present value
of payments
Within one year
2,7
2,2
5,4
4,9
After one year but not more than
five years
5,3
4,8
8,0
6,7
Total minimum lease payments
8,0
7,0
13,4
11,6
Less amounts representing finance
charges
(1,0)
–
(1,8)
–
Total
7,0
7,0
11,6
11,6
*
The amounts have been restated due to the adoption of IAS 19R.
Refer to note 31.3 for further details.
33.5
Commitments in respect of inventories
In terms of its normal business practice, certain group operations have entered into commitments to
purchase certain agricultural inputs over their respective seasons.
33.6
Commitments in respect of transport
The group maintains long-term contracts, including certain minimum payments, with various transport
companies for the distribution of its products.
34 Pension obligations
The company and its subsidiaries contribute to retirement plans that cover all employees. The retirement plans
are either defined benefit plans or defined contribution plans and are funded. The assets of the funds are held
in independent trustee administered funds, administered in terms of the Pension Funds Act 24 of 1956, as
amended. In terms of the Pension Funds Act, certain of the retirement funds are exempt from actuarial
valuation. Those funds not exempt from valuation must, in terms of the Pension Funds Act, be valued at least
every three years. For purposes of these disclosures, and in order to comply with the requirements of IAS 19,
valuations have been performed by independent actuaries, using the projected unit credit method. Where
valuations were not possible due to the limited availability of complete data, roll-forward projections of prior
completed actuarial valuations were used, taking account of actual subsequent experience.
Within the company’s group of subsidiaries, there are a total of 22 retirement plans, three of which are
defined benefit pension funds, five are defined contribution pension funds, two are defined benefit
provident funds and eight are defined contribution provident funds. There are a further four schemes of
insurance into which the company and its subsidiaries contribute. Certain companies within the group
sponsor external death, funeral and disability benefit insurance policies. These insurance costs have
been allowed for in the disclosures provided. All of the funds above are funded with one exception.