NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
for the year ended 30 June 2015

1. BASIS OF PREPARATION
 

The abridged consolidated annual financial statements have been extracted from the audited consolidated annual financial statements for the year ended 30 June 2015, available at www.rclfoods.com. The abridged consolidated annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), the information required by IAS 34 (Interim Financial Reporting), IFRIC interpretations, SAICA financial reporting guides and in compliance with the Companies Act of South Africa and the Listings Requirements of the JSE Limited, under the supervision of the Chief Financial Officer, Robert Field CA(SA). The accounting policies comply with IFRS and are consistent with those applied in the previous year except for the adoption of the amendments to IAS 19 (Employee Benefits), IAS 32 (Financial Instruments: Presentation), IAS 36 (Impairment of Assets), IAS 39 (Financial Instruments: Recognition and Measurement), Annual Improvements 2012 and Annual Improvements 2013 which became effective 1 July 2014. The adoption of these amendments has no effect on the results, nor has it required any restatement of results.

Following a reassessment of Foodcorp’s trade agreements with its customers, it was concluded that certain allowances granted to customers, that were previously recorded as an expense, should be recorded as a reduction of revenue. As a result, the revenue total for the year ended 30 June 2014 has been restated. The restatement has no impact on operating profit or the statement of financial position.

    30 June
2014
R’000
  Impact on statement of comprehensive income
Decrease in revenue
(219 123)
 
2. DIRECTORS’ EMOLUMENTS
  Basic 
salary 
R’000 
Pension 
contribution 
R’000 
Bonus* 
R’000 
Other 
benefits** 
R’000 
Total 
R’000 
2015 
M Dally  6 688  527  2 750  191  10 156 
RH Field  3 300  347  1 142  103  4 892 
9 988  874  3 892  294  15 048 
2014 
M Dally  6 161  446  1 785  218  8 610 
RH Field  2 968  295  674  112  4 049 
9 129  741  2 459  330  12 659 
 
 
 

 

Non-executives (for services as a director) 2015 
R’000 
2014 
R’000 
Present directors 
HJ Carse*  246  223 
JJ Durand*  302  223 
PR Louw*  246  223 
NP Mageza  455  389 
DTV Msibi**  345  269 
MM Nhlanhla  296  269 
RV Smither  582  497 
GM Steyn  383  276 
GC Zondi***  541  473 
3 396  2 842 
Past directors 
Dr M Griessel  129 
JB Magwaza  96 
225 
Total  3 396  3 067 
 
 
 
 
   
 

Interests of directors of the company in share options granted in terms of the RCL FOODS Share Incentive Scheme
Options granted to executive directors and unexpired or unexercised as at 30 June 2015 are as follows:

   Issue price 
prior to 
rights issue 
Rand 
Issue price 
post  rights 
issue* 
Rand 
Options 
exercisable 
at 30 June 
2014 
Options 
exercised 
during 
the year 
Options 
exercisable 
at 30 June 
2015 
Exercise 
price 
Rand 
Gain on 
options 
exercised 
R’000 
M Dally  14,20  13,21  542 224  (542 224)    17,16  2 141 
RH Field  14,20  13,21  284 319  (284 319)    17,16  1 122 
Total  826 543  (826 543) 3 263 
 
 
 
Options granted to executive directors and unexpired or unexercised as at 30 June 2014 are as follows: 
             
Issue price 
prior to 
rights issue 
Rand 
Issue price 
post 
rights issue*
Rand 
Options 
exercisable 
at 30 June 
  2013 
Options 
exercised 
during 
the year 
Options 
exercisable 
at 
30 June 
2014 
Exercise 
price 
Rand 
Gain on 
options 
exercised 
R’000 
M Dally  16,35  15,21  1 188 688  (1 188 688) 17,00  2 128 
14,20  13,21  542 224  542 224 
1 730 912  (1 188 688) 542 224  2 128 
RH Field  16,35  15,21  619 147  (619 147) 17,00  1 108 
14,20  13,21  284 319  284 319 
903 466  (619 147) 284 319  1 108 
Total  2 634 378  (1 807 835) 826 543  3 236 
 
  No options were issued during the year, nor will any further options be issued under the RCL FOODS Share Incentive Scheme, as this scheme has been replaced by the RCL FOODS Share Appreciation Rights Scheme approved at the 43rd annual general meeting of the shareholders held on 31 July 2009. The scheme will be simply allowed to run its course in respect of existing options.
             

Interests of directors of the company in share appreciation rights awarded in terms of the RCL FOODS Share Appreciation Rights Scheme

Share appreciation rights awarded to executive directors and unexpired or unexercised as at 30 June 2015 are as follows:

Interests of directors of the company in share appreciation rights awarded in terms of the RCL FOODS Share Appreciation Rights Scheme Share appreciation rights awarded to executive directors and unexpired or unexercised as at 30 June 2015 are as follows:
             
Issue price 
prior to 
rights issue 
Rand 
Issue price 
post 
rights issue* 
Rand 
Rights 
at 
30 June 
2014 
Rights 
awarded 
during 
the year 
Rights 
at 
30 June 
2015 
Grant date 
fair value 
of rights 
awarded 
during 
the year** 
R’000 
Rights 
exercisable 
at 30 June 
2015 
M Dally  15,34  14,27  908 945  908 945  908 945 
15,83  14,73  929 256  929 256  929 256 
17,68  16,45  714 572  714 572  471 617 
14,19  13,20  768 117  768 117 
16,54  1 240 943  1 240 943 
15,93  1 014 820  1 014 820  2 760 
4 561 833  1 014 820  5 576 653  2 760  2 309 818 
RH Field  15,34  14,27  427 702  427 702  427 702 
15,83  14,73  431 618  431 618  431 618 
17,68  16,45  364 999  364 999  240 899 
14,19  13,20  374 505  374 505 
16,54  621 765  621 765 
15,93  559 397  559 397  1 522 
2 220 589  559 397  2 779 986  1 522  1 100 219 
Total  6 782 422  1 574 217  8 356 639  4 282  3 410 037 
 
 
 
                          
   Share appreciation rights awarded to executive directors and unexpired or unexercised as at 30 June 2014 are as follows:       
                 
      Issue price 
prior to 
rights issue 
Rand 
Issue price 
post 
rights issue* 
Rand 
Rights 
at 
30 June 
2013 
Rights 
awarded 
during 
the year 
Rights 
at 
30 June 
2014 
Grant date 
fair value of 
rights 
awarded 
during 
the year** 
R'000 
Rights 
exercisable 
at 30 June 
2014 
   M Dally  15,34  14,27  908 945     908 945     599 903 
      15,83  14,73  929 256     929 256     613 308 
      17,68  16,45  714 572     714 572     205 808 
      14,19  13,20  768 117     768 117       
         16,54     1 240 943  1 240 943  4 054    
                          
            3 320 890  1 240 943  4 561 833  4 054  1 419 019 
                          
   RH Field  15,34  14,27  427 702     427 702     282 283 
      15,83  14,73  431 618     431 618     284 867 
      17,68  16,45  364 999     364 999     120 449 
      14,19  13,20  374 505     374 505       
         16,54     621 765  621 765  2 031    
                          
            1 598 824  621 765  2 220 589  2 031  687 599 
   Total        4 919 714  1 862 708  6 782 422  6 085  2 106 618 
 
 
 
       
  Interests of directors of the company in conditional shares awarded in terms of the RCL FOODS conditional share plan
       
    Conditional 
shares 
at 
30 June 
2015 
Conditional 
shares 
at 
30 June 
2014 
  M Dally  675 547  675 547 
  RH Field  340 124  340 124 
  Total  1 015 671  1 015 671 
           
  Interests of directors of the company in stated capital
The aggregate beneficial holdings as at 30 June of those directors of the company holding issued ordinary shares are detailed below:
       
    2015 2014
    Direct 
beneficial 
Indirect 
beneficial 
Direct 
beneficial 
Indirect 
beneficial 
  Executive directors             
  M Dally  1 201 653     1 201 653    
  RH Field  250 000     250 000    
  Non-executive directors             
  NP Mageza     386     386 
  MN Nhlanhla*     229 559     229 559 
  GC Zondi*     4 251 093     4 251 093 
     1 451 653  4 481 038  1 451 653  4 481 038 
 
 
             
 

There has been no change in the interest of the directors in the stated capital of the company since the end of the financial year to the date of this report.

Directors' emoluments paid by Remgro Limited

             
  Fixed pay Fees 
R’000 
Salaries 
R’000 
Retirement 
fund 
R’000 
Other 
benefits** 
R’000 
Total 
R’000 
  30 June 2015          
  Executive                
  HJ Carse     1 717  340  231  2 288 
  JJ Durand  245  9 204  1 874  302  11 625 
  PR Louw     1 530  303  232  2 065 
     245  12 451  2 517  765  15 978 
  Non-executive                
  NP Mageza  328           328 
     328           328 
  Total  573  12 451  2 517  765  16 306 
  30 June 2014                
  Executive                
  HJ Carse     1 602  318  218  2 138 
  JJ Durand  228  7 617  1 556  283  9 684 
  PR Louw     1 412  280  218  1 910 
     228  10 631  2 154  719  13 732 
  Non-executive                
  NP Mageza  305           305 
     305           305 
  Total  533  10 631  2 154  719  14 037 
 
 
                         
  Variable pay – long-term incentive plans
Remgro Equity Settled Share Appreciation Right Scheme (SARs) – 2015
                         
  Participant   Balance 
of SARs 
accepted 
as at 
30 June 
2014 
SARs 
accepted 
during 
the 
year 
Offer 
date 
Offer 
price 
Rand 
Number 
of SARs 
exercised 
Date 
exercising 
SARs 
Share 
price on 
exercise 
date 
Increase 
in 
value* 
R’000 
Balance 
of SARs 
accepted 
as at 
30 June 
2015 
Grant 
date fair 
value 
of SARs 
granted 
during 
the 
year 
R’000 
  Executive                                 
  HJ Carse    20 613        78,30  (20 613) 23/09/2014  239,20  3 317       
       38 062        97,55  (10 000) 15/05/2015  257,40  1 599  28 062    
       7 546        147,25              7 546    
       11 767        191,70              11 767    
          17 775  26/11/2014  253,53              17 775  1 219 
  JJ Durand    108 236        78,30  (108 236) 3/11/2014  252,98  18 907       
       7 572        75,38  (2 572) 3/11/2014  252,98  457  5 000    
       235 895        97,55  (78 633) 3/11/2014  252,98  12 222  157 262    
       271 258        147,25              271 258    
       93 128        191,70              93 128    
          108 468  26/11/2014  253,53              108 468  7 442 
  PR Louw    8 998        65,50              8 998    
       27 432        97,55              27 432    
       22 646        147,25              22 646    
       12 944        191,70              12 944    
          5 952  26/11/2014  253,53              5 952  408 
       866 097  132 195        (220 054)       36 502  778 238  9 069 
 
 
                       
  Remgro Equity Settled Share Appreciation Right Scheme (SARs) – 2014
                       
  Participant Balance 
of SARS 
accepted 
as at 
30 June 
2013 
SARS 
accepted 
during 
the 
year 
Offer date  Offer 
price 
Rand 
Number 
of SARS 
exercised 
Date 
exercising 
SARS 
Share 
price on 
exercise 
date 
Increase 
in value* 
R’000 
Balance 
of SARS 
accepted 
as at 
30 June 
2014 
Grant 
date fair 
value 
of SARS 
granted 
during 
the 
year 
R’000 
  Executive                               
  HJ Carse  20 613                       20 613    
     2 933           (2 933) 27/09/2013  197,95  359       
     1 624           (1 624) 27/09/2013  197,95  187       
     38 062                       38 062    
     7 546                       7 546    
        11 767  4/12/2013  191,7              11 767  640 
  JJ Durand  108 236                       108 236    
     7 572                       7 572    
     235 895                       235 895    
     271 258                       271 258    
        93 128  4/12/2013  191,7              93 128  5 064 
  PR Louw  7 066           (7 066) 31/10/2013  206,50  1 007       
     26 995           (17 997) 31/10/2013  206,50  2 538  8 998    
     27 432                       27 432    
     22 646                       22 646    
        12 944  4/12/2013  191,7              12 944  704 
     777 878  117 839        (29 620)       4 091  866 097  6 408 
 
 
       
  2015 
R’000 
2014 
R’000 
3. FINANCE COSTS    
  Interest – financial institutions  351 541  450 102 
  Interest – preference shares     1 825 
  Fair value adjustment on interest rate collar option  3 176    
  Transaction costs on term-funded debt  882    
  Interest – Group companies  5 932  10 908 
  Foreign exchange losses*     557 251 
  Interest – other  33 269  24 665 
       394 800  1 044 751 
  Less: amounts capitalised on qualifying assets  (21 193) (1 293)
       373 607  1 043 458 
 
 
           
      2015 
R’000 
2014 
R’000 
4.   INTEREST-BEARING LIABILITIES       
   Long-term       
   Bank borrowings  56 392  227 711 
   Finance lease liabilities  62 102  79 371 
   Term-funded debt package  3 350 000    
   Loan from Akwandze Agricultural Finance Proprietary Limited  42 777  60 474 
      3 511 271  367 556 
   Short-term       
   Bank borrowings  4 637  54 000 
   Finance lease liabilities  33 073  36 389 
   RMB bridging loan     4 494 750 
   Loan from Akwandze Agricultural Finance Proprietary Limited  93 849  42 577 
      131 559  4 627 716 
   
 

Bank borrowings
Included in bank borrowings in the prior year was an unsecured loan from FNB with a carrying value of R216,0 million. This loan was repaid in full during the current financial year. This loan bore interest at Jibar +2,3%. The accrued interest on the loan was repayable in quarterly instalments on the 15th of the month. The capital was repayable in four equal yearly instalments of R54,0 million on the 15th of April each year.

Included in long-term bank borrowings are loans from Futuregrowth Asset Management Proprietary Limited with a carrying value of R56,4 million (2014: R65,7 million) with an amount of R4,6 million included in short-term bank borrowings (2014: Rnil). These loans were used to fund new contract grower operations in Rainbow. These loans bear interest at the three-month Jibar with a margin of between 1,5% and 5,25% (2014: 4,25% and 5,25%). The outstanding loan together with the accrued interest is required to be repaid in instalments based on the contract growers operating cycle, at intervals of between 40 to 50 days between payment.

The carrying amount of bank borrowings approximates their fair values.

Finance lease liabilities
The finance lease liabilities bear interest at a rate between 7,0% and 10,0%.

Finance lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.

The carrying amount of the finance lease liabilities approximates their fair values.

Term-funded debt package
During the 2015 financial year, the RMB bridging loan was replaced with a term-funded debt package.

The debt package comprises two bullet loans and a revolving credit facility.

The loans bear interest at a floating rate (JIBAR) plus a margin of between 1,65% and 2,25%.

The interest rate is fixed in years one and two at an average rate of 8,63% on a portion of the bullet loans and thereafter a floating rate is applied.

The above loans were obtained from a combination of RMB, ABSA, Standard Bank South Africa and HSBC. Any material corporate transactions that would impact on the lenders assessment of risk in terms of the debt package, requires prior consent.

         
  The details of the loans and the effective interest rate for the year is shown below:
    Amount 
R’000 
Term 
years 
Effective 
interest rate 
  Type          
  Bullet loan (A) 1 755 000  8,57 
  Bullet loan (B) 1 097 000  8,34 
  Revolving credit facility  498 000  8,38 
  Total  3 350 000       
   
 

In the event that the Net Senior Debt to EBITDA ratio exceeds 2.7 times on a measuremesnt date, the applicable interest rate will be increased by 0,25% until the cover is restored. Net Senior Debt represents all unsubordinated debt less cash and cash equivalents and investment in money market fund.

The obligation in respect of the debt package discussed above has been guaranteed by each of Foodcorp Proprietary Limited, RCL FOODS Limited, New Foodcorp Holding Proprietary Limited, TSB Sugar Proprietary Limited, Rainbow Farms Proprietary Limited, Rainbow Farms Investments Proprietary Limited, RCL Group Services Proprietary Limited, Vector Logistics Proprietary Limited and Capitau Investment Management Proprietary Limited.

Loans from Akwandze Agricultural Finance Proprietary Limited (“Akwandze”)
The loans from Akwandze are repayable annually, over a maximum period of six years. These loans bear interest at a fixed rate of 4,0% per annum and are secured by a cession over Libuyile Farming Services Proprietary Limited, Mgubho Farming Services Proprietary Limited and Sivunosetfu Proprietary Limited rights and interest in the gross revenue accruing to these companies from all sugar cane cut and delivered to any mill, including revenue from any seed cane sold or disposed otherwise.

All of the above loans are unsecured.

The carrying amount of these loans approximates their fair values.

       
  2015 
R’000 
2014 
R’000 
5. NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATION    
  Non-current assets held for sale and the discontinued operation relate to the following segments:    
  Assets       
  Foodcorp  43 279  541 110 
  TSB  33 263    
     76 542  541 110 
  Liabilities       
  Foodcorp  17 789  186 151 
     17 789  186 151 
  TSB       
  Shubombo Agricultural Services Proprietary Limited was engaged in a lease       
  agreement as a lessee with the a local community (lessor) in respect of a cane and       
  fruit producing farm. An option to exit the lease agreement was exercised during the       
  current financial year. The assets of the farm to which the lease agreement pertains       
  will be transferred for value to the local community. The exit agreement between the       
  parties has been signed and a formal exit will be finalised during the 2016 financial       
  year.       
  Details of the assets and liabilities classified as held for sale are as follows:       
  Assets       
  Biological assets  30 316    
  Property, plant and equipment  2 947    
     33 263    
  Movements during the year       
  Transferred from property, plant and equipment  1 459    
  Transferred from biological assets  30 316    
  Additions to property, plant and equipment  1 488    
  Closing balance  33 263    
       
 

Foodcorp
The last of the conditions precedent pertaining to the sale of the Fishing division (previously part of the Foodcorp segment) was fulfilled during the current financial year.

The sale was concluded subject to a condition that the Glenryck trademark not form part of the transaction. The proposed sale of the Glenryck brand to a third party is well advanced and as such the trademark has been disclosed as held for sale at its fair value less costs to sell.

       
    2015 
R’000 
2014 
R’000 
  Net cash inflow from operating activities  54 275  43 918 
  Net cash outflow from investing activities  (17 510) (6 556)
  Net cash outflow from financing activities  (1 455) (3 519)
  Total cash flows discontinued operation  35 310  33 843 
  Assets of disposal group classifed as held for sale       
  Property, plant and equipment     108 720 
  Goodwill     138 867 
  Trademarks and other intangibles  24 376  120 074 
  Investments     11 
  Inventory  4 873  68 613 
  Trade and other receivables  1 586  79 128 
  Trade receivables intercompany  12 444  23 584 
  Loan receivable     2 113 
  Total assets  43 279  541 110 
  Liabilities of disposal group classifed as held for sale       
  Interest-bearing liabilities     1 394 
  Trade and other payables  10 790  79 396 
  Current income tax liabilities     157 
  Deferred tax liability  6 999  105 204 
  Total liabilities  17 789  186 151 
 

Non-controlling interest classifed as held for sale
As the assets and liabilities presented as held for sale were acquired in a business combination, no income/expenses have been recognised in other comprehensive income relating to disposal group classified as held for sale.

Analysis of the result of the discontinued operation, and the result recognised on the measurement and sale of assets or disposal group, is as follows:

                         
  Revenue  298 318  484 466 
  Expenses  (287 866) (439 529)
  Profit before tax  10 452  44 937 
  Income tax expense  (2 740) (15 182)
  Proft for the year from operations  7 712  29 755 
  Loss on disposal of discontinued operation (net of tax) (28 193)   
  Impairment to fair value less cost to sell (net of tax)*  (11 424)   
  (Loss)/proft for the year from discontinued operation  (31 905) 29 755 
  Attributable to:       
  Equity holders of the company  (31 905) 29 755 
  The fair value was determined using the selling price of the asset based on the       
  impending sale to a third party. The fair value is a level 3 input.       
  Reconciliation of carrying amount of Glenryck trademark       
  Balance at 1 July  40 000    
  Impairment to fair value less cost to sell  (15 624)   
  Balance at 30 June  24 376    
 
 
     
6. RELATED PARTY TRANSACTIONS
 

Related party relationships exist between RCL FOODS Limited, its subsidiaries, associates , joint ventures and Remgro Limited and its subsidiaries, associates and joint ventures. Remgro Management Services Limited provides treasury services to the Group.

The ultimate controlling party of the Group is Remgro Limited.

During the prior financial year, TSB RSA Proprietary Limited was acquired from Remgro Limited for a total consideration of R4,0 billion, settled by issuing shares at a price of R17,32 per share.

Group
As detailed in note 1 to the company financial statements available at www.rclfoods.com, the company has concluded certain lending transactions with these related parties. In addition the following transactions were concluded:

       
    2015 
R’000 
2014 
R’000 
  Transactions and balances with ultimate holding company       
  Interest paid to Remgro Management Services Limited  8 725  8 044 
  Administration and other fees paid to Remgro Management Services Limited  19 148  13 438 
  Amount owing to Remgro Management Services Limited included in payables  6 492  1 386 
  Directors’ fees  794  669 
  Transactions and balances with associates of the holding company       
  Bank charges paid to First National Bank Limited  2 946  2 098 
  Bank balances with First National Bank Limited included in cash and cash equivalents  129 027  162 017 
  Net interest paid to First National Bank Limited  11 925  3 331 
  Corporate finance transaction costs paid to Rand Merchant Bank  10 000  17 250 
  Commitment, settlement and facility fees paid to Rand Merchant Bank  864  11 985 
  Amount owing to Rand Merchant Bank included in short-term interest-bearing liabilities  7 105  4 500 000 
  Amount owing to Rand Merchant Bank included in long-term interest-bearing liabilities 1 126 000    
  Interest paid to Rand Merchant Bank  254 302  74 336 
  Purchases from Falconair Proprietary Limited 
  Purchases from Total South Africa Proprietary Limited  56 692  21 100 
  Amount owing to Total South Africa Proprietary Limited included in payables  1 232  1 976 
  Purchases from Unilever South Africa Proprietary Limited  88 257  65 902 
  Amount owing to Unilever South Africa Proprietary Limited included in payables  15 141  9 755 
  Purchases from PG Glass Proprietary Limited  100  100 
  Amount owing to PG Glass Proprietary Limited included in payables  11  31 
  Bank charges paid to First Auto Proprietary Limited  27  27 
  Purchases from First Auto Proprietary Limited  5 299  5 080 
  Interest paid to First Auto Proprietary Limited    
  Amount owing to First Auto Proprietary Limited included in payables  410  137 
  Purchases from Blue Bulls Proprietary Limited  379  404 
  Purchases from Glassmen Proprietary Limited    
  Purchases from Tracker and Signal Distribution Technologies Proprietary Limited  38 
  Purchases from Unitrade Management Services Proprietary Limited  20  297 
  Purchases from Mia Gas Proprietary Limited    
  Sales to Distell Limited     331 
  Purchases from Sturrock Grinrod Ships Agencies Proprietary Limited     112 
  Purchases from Rohlig Grindrod Proprietary Limited  201    
  Amount payable to Rohlig Grindrod Proprietary Limited  33    
  Purchases from Mediclinic Proprietary Limited    
  Transactions with associate and joint ventures within the Group       
  Interest paid to Akwandze Agricultural Finance Proprietary Limited  5 687  2 633 
  Interest paid to Managa Sugar Packers Proprietary Limited    
  Management fees received from Managa Sugar Packers Proprietary Limited  1 230  583 
  Service fees received from The Royal Swaziland Sugar Corporation Limited  3 684  1 589 
  Dividend received from The Royal Swaziland Sugar Corporation Limited  35 741  25 981 
  Dividend received from Managa Sugar Packers Proprietary Limited  10 215  1 692 
  Dividend received from Akwandze Agricultural Finance Proprietary Limited  999    
  Amounts owing to Akwandze Agricultural Finance Proprietary Limited included in payables  106  110 
  Sales to Akwandze Agricultural Finance Proprietary Limited  344    
  Sales to Managa Sugar Packers Proprietary Limited  2 390  2 260 
  Purchases from Managa Sugar Packers Proprietary Limited  817 969  281 165 
  Amounts owing by Managa Sugar Packers Proprietary Limited included in payables  1 593  1 565 
  Amounts owing to Managa Sugar Packers Proprietary Limited included in receivable  84 999  73 064 
  Sales to The Royal Swaziland Sugar Corporation Limited  3 300  1 343 
  Amounts owing by The Royal Swaziland Sugar Corporation Limited included in receivables  392  425 
  Purchases from The Royal Swaziland Sugar Corporation Limited  731    
  Interest received from TSGRO Farming Service Proprietary Limited  111    
  Service fees paid to TSGRO Farming Service Proprietary Limited  1 982    
  Sales to TSGRO Farming Service Proprietary Limited  389    
  Purchases from TSGRO Farming Service Proprietary Limited  2 312    
  Amounts owing by TSGRO Farming Service Proprietary Limited included in receivables   366      
  Amounts owing to TSGRO Farming Service Proprietary Limited included in payables  857    
  Key management of RCL FOODS Limited       
  In terms of IAS24: Related party disclosures, key management are considered to be related parties.       
  Executive management and the senior leadership team are classified as key management.       
  The following transactions were carried out with key management individuals within the Group:       
  – short-term and post-employment benefits  415 220  191 044 
  – share-based payments  47 546  34 617 
       462 766  225 661 
 
7. SUBSEQUENT EVENTS
 

On 31 July 2015, the Group acquired a 33,5% shareholding in Hudani Manji Holdings Limited, a private poultry producer in Uganda. The assessment of the accounting for the acquired entity will be finalised and reported on in the 2016 financial year.