All monetary amounts are expressed
in millions of Rands |
2007 |
Restated
2006 |
| 42. |
OPERATING LEASE ARRANGEMENTS |
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| 42.1 |
General operating leases |
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Operating lease payments represent rentals payable by the Group for certain of its office properties and certain items of plant and machinery, and furniture and fittings. These leases have varying terms, escalation clauses and renewal periods. |
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Operating lease cost |
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Operating lease costs recognised in the income statement are set out in note 26. |
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Operating lease commitments |
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The future minimum lease payments under non-cancellable operating leases are as follows: |
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|
|
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Due within one year |
|
102,7 |
24,9 |
|
Due between two and five years |
|
124,4 |
37,3 |
|
Due thereafter |
|
154,8 |
4,3 |
| |
|
|
381,9 |
66,5 |
| 42.2 |
Operating headleases |
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Operating headlease payments represent rentals payable by the Group for the
headlease properties in which the Group does not have a controlling interest at the
end of the lease and consist of leases over commercial, industrial and retail properties.
These leases have varying terms, escalation clauses and renewal periods. |
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Operating headlease cost |
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Operating headlease costs recognised in the income statement are set out in note 25. |
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The future minimum sublease payments expected to be received for the next three years on the leased properties is R32,4 million (2006: R71,9 million). |
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Operating headlease commitments |
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The future minimum lease payments under non-cancellable operating headleases are as follows: |
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|
|
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Due within one year |
|
25,3 |
32,5 |
|
Due between two and five years |
|
53,1 |
37,1 |
| |
|
|
78,4 |
69,6 |
| 43. |
FINANCIAL RISK MANAGEMENT |
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The Group does not trade in financial instruments but, in the normal course of operations, is exposed to currency, credit, interest and liquidity risk.
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In order to manage these risks, the Group may enter into transactions that make use of financial instruments. The Group’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, derivatives, accounts receivable and payable and interest bearing borrowings. |
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| 43.1 |
Treasury risk management |
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The Group's treasury operations provide the Group with access to local and foreign money markets and provide subsidiaries
with the benefits of bulk financing and depositing. |
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| 43.2 |
Foreign currency management |
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Loans |
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All material foreign loans are covered, in terms of group policy, by forward foreign exchange contracts except where a natural
hedge against the underlying assets exists. |
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Trade exposure |
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The Group's policy is to cover forward all trade commitments in order to hedge significant future transactions and cash flows.
Each division manages its own trade exposure. In this regard the Group has entered into certain forward foreign exchange
contracts. All such contracts are supported by underlying commitments, receivables or payables. The risk of having to close out
these contracts is considered to be low. |
