NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

GROUP					COMPANY
2016 R'000	2015 R'000				2016 R'000	2015 R'000
		11	PROPERTY, PLANT AND EQUIPMENT
			11.1	Freehold land and buildings
				Cost
853 344	774 526			Balance at the beginning of the year	250	679
154 426	73 801			Additions capitalised
–	(18 237)			Government grant received
–	23 983			Acquisition through business combinations
(34 359)	( 429)			Transfer to assets classified as held-for-sale	–	(429)
( 497)	(14)			Disposals
–	(286)			Reclassification between asset classes
972 914	853 344			Balance at the end of the year	250	250
				Accumulated depreciation and impairment
(217 156)	(194 993)			Balance at the beginning of the year	(16)	(15)
(25 264)	(22 103)			Depreciation for the year	(1)	(1)
412	8			Disposals
–	(68)			Reclassification between asset classes
13 195	–			Transfer to assets classified as held-for-sale
(228 813)	(217 156)			Balance at the end of the year	(17)	(16)
				Carrying amounts
636 188	579 533			Balance at the beginning of the year	234	664
744 101	636 188			Balance at the end of the year	233	234

			11.2	Leasehold properties
				Cost
31 030	29 765			Balance at the beginning of the year
5 152	1 032			Additions capitalised
2 833	233			Foreign exchange translations
39 015	31 030			Balance at the end of the year
				Accumulated depreciation and impairment
(5 145)	(3 956)			Balance at the beginning of the year
(3 076)	(1 160)			Depreciation for the year
(418)	(29)			Foreign exchange translations
(8 639)	(5 145)			Balance at the end of the year
				Carrying amounts
25 885	25 809			Balance at the beginning of the year
30 376	25 885			Balance at the end of the year

			11.3	Plant, equipment and vehicles
				Cost
1 947 093	1 762 564			Balance at the beginning of the year
204 441	195 280			Additions capitalised
(2 003)	(17 089)			Government grant received
463	56 314			Acquisition through business combinations
–	298			Reclassification between asset classes
(40 151)	(50 726)			Disposals
(13 993)	–			Transfer to assets classified as held-for-sale
5 979	452			Foreign exchange translations
2 101 829	1 947 093			Balance at the end of the year
				Accumulated depreciation and impairment
(783 123)	(678 887)			Balance at the beginning of the year
(138 601)	(137 227)			Depreciation for the year
–	( 8)			Reclassification between asset classes
28 545	33 089			Disposals
11 767	–			Transfer to assets classified as held-for-sale
(1 596)	( 90)			Foreign exchange translations
(883 008)	(783 123)			Balance at the end of the year
				Carrying amounts
1 163 970	1 083 677			Balance at the beginning of the year
1 218 821	1 163 970			Balance at the end of the year

			11.4	Total property, plant and equipment
				Cost
2 831 467	2 566 855			Balance at the beginning of the year	250	679
364 019	270 113			Additions capitalised
(2 003)	(35 326)			Government grants received
(48 352)	( 429)			Transfer to assets classified as held-for-sale	–	(429)
463	80 297			Acquisition through business combinations
(40 648)	(50 740)			Disposals
8 812	685			Foreign exchange translations
–	12			Reclassification between asset classes
3 113 758	2 831 467			Balance at the end of the year	250	250
				Accumulated depreciation and impairment
(1 005 424)	(877 836)			Balance at the beginning of the year	(16)	(15)
(166 941)	(160 490)			Depreciation for the year	(1)	(1)
24 962	–			Transfer to assets classified as held-for-sale
–	(76)			Reclassification between asset classes
28 957	33 097			Disposals
(2 014)	( 119)			Foreign exchange translations
(1 120 460)	(1005 424)			Balance at the end of the year	(17)	(16)
				Capital work-in-progress
327 408	129 094			Balance at the beginning of the year
(144)	121			Foreign exchange translations
365 133	513 277			Additions: current year
2 003	35 326			Government grants received
(364 482)	(350 410)			Assets brought into use
329 918	327 408			Balance at the end of the year
				Total property, plant and equipment including work-in-progress
				Carrying amounts
2 153 451	1 818 113			Total property, plant and equipment at the beginning of the year	234	644
2 323 216	2 153 451			Total property, plant and equipment at the end of the year	233	234

				Registers containing details of land are available for inspection at the registered office. The carrying value of plant and equipment held under finance leases and hire purchase contracts at 30 June 2016 was R25,8 million (2015: R31,9 million). Additions during the year were R Nil million (2015: R 27,3 million) of plant and equipment held under finance lease and hire purchase agreements. Leased assets and assets bought under hire purchase contracts are pledged as security for the related finance lease and hire purchase liabilities.
				Government grants have been received in terms of the DTI's Manufacturing Competitive Enhancement Programme for the purchase of certain items of property, plant and equipment. There are no unfulfilled conditions or contingencies attached to these grants.
				Assets with an original cost price of R51,4 million (2015: R32,1 million) are still in use, although it has been fully depreciated.

GROUP				COMPANY
2016 R'000	2015 R'000			2016 R'000	2015 R'000
		12	INVESTMENT PROPERTIES
			Cost
270	6 096		Balance at the beginning of the year
–	(5 826)		Transfer to assets held-for-sale
270	270		Balance at the end of the year
			Accumulated depreciation
(247)	(4716)		Balance at the beginning of the year
(8)	(132)		Depreciation for the year
–	76		Reclassification between asset classes
–	4 525		Transfer to assets held-for-sale
(255)	(247)		Balance at the end of the year
			Carrying amounts
23	1 380		Balance at the beginning of the year
15	23		Balance at the end of the year
292	272		Rental income derived from investment properties
–	–		Direct operating expenses generating rental income
292	272		Net profit arising from investment properties carried at net book value
			The fair value of the property is R1,1 million (2015: R1,1 million).
			The fair value of investment properties has been determined based on valuations performed by “The Property Partnership”, an accredited independent valuer, “The Property Partnership” is an industry specialist in valuing investment properties.
			The valuation was determined by using the capitalisation of future rentals technique. It was based on a net annual rental income of R149 000 (2015: R157 376) and a rental capitalisation into perpetuity factor of 13% (2015: 14%) and is considered to be a Level 3 fair value disclosure.

GROUP					COMPANY
2016 R'000	2015 R'000				2016 R'000	2015 R'000
		13	INTANGIBLE ASSETS
			13.1	Goodwill
				Cost
375 205	328 750			Balance at the beginning of the year
5 540	46 455			Acquisition through business combinations
380 745	375 205			Balance at the end of the year
				Impairment losses
(1 311)	(1 311)			Balance at the beginning of the year
(1 311)	(1 311)			Balance at the end of the year
				Carrying amounts
373 894	327 439			Balance at the beginning of the year
379 434	373 894			Balance at the end of the year

			13.2	Trademarks, patents, right-of-use and customer lists
				Cost
138 057	69 003			Balance at the beginning of the year
14 027	68 054			Acquisitions through business combinations
152 084	138 057			Balance at the end of the year
				Accumulated amortisation and impairment
(16 777)	(9 452)			Balance at the beginning of the year
(11 849)	(7 325)			Amortisation for the year
(28 626)	(16 777)			Balance at the end of the year
				Carrying amounts
121 280	59 551			Balance at the beginning of the year
123 458	121 280			Balance at the end of the year

			13.3	Software licences
				Cost
130 215	86 483			Balance at the beginning of the year
15 383	44 161			Additions
(10 236)	(417)			Disposals
(9 604)	–			Government grants received
–	(12)			Reclassification between asset classes
125 758	130 215			Balance at the end of the year
				Accumulated amortisation and impairment
(65 554)	(56 234)			Balance at the beginning of the year
(9 831)	(9 723)			Amortisation for the year
10 181	403			Disposals
(65 204)	(65 554)			Balance at the end of the year
				Carrying amounts
64 661	30 249			Balance at the beginning of the year
60 554	64 661			Balance at the end of the year

			13.4	Total intangible assets
				Cost
643 477	484 236			Balance at the beginning of the year
15 383	44 161			Additions
19 567	115 509			Additions through business combinations
(10 236)	(417)			Disposals
(9 604)	–			Government grants received
–	(12)			Reclassification between asset classes
658 587	643 477			Balance at the end of the year
				Accumulated amortisation and impairment
(83 642)	(66 997)			Balance at the beginning of the year
(21 680)	(17 048)			Amortisation for the year
10 181	403			Disposals
(95 141)	(83 642)			Balance at the end of the year
				Capital work-in-progress – software
7 722	30 254			Balance at the beginning of the year
66 367	137 138			Additions
9 604	–			Government grants received
(34 948)	(159 670)			Amounts capitalised
48 745	7 722			Balance at the end of the year
				Carrying amounts
567 557	447 493			Total intangible assets at the beginning of the year
612 191	567 557			Total intangible assets at the end of the year
				An impairment test is done annually at the Group's financial year-end on goodwill acquired through business combinations. The value-in-use of the businesses are represented by the present value of future cash flows generated by the businesses estimated for a five-year period and is based on:
				Current net profit before tax, projected forward at an average growth of between 5%-6% (2015: 6%) and adjusted for non-cash items; movements in working capital; and a before tax discount rate of 19,92% (2015: 17,19%).
				Goodwill has been allocated to Clover Industries Group excluding Clover Frankies and then to Clover Frankies as the smallest separately identifiable cash-generating units due to income, cost, assets and liabilities not being possible to be split into smaller cash-generating units. In the comparative figures Clover Waters was as a separate CGU however, due to restructuring the business of Clover Waters by bringing the manufacturing in-house it will form part of the CIL Group CGU from this year onwards. The calculated recoverable amount exceeds the carrying amount of the cash-generating unit. No reasonably possible change will result in the carrying amount exceeding the recoverable amount of the cash-generating unit.
				Government grants have been received in terms of the DTI's Manufacturing Competitive Enhancement Programme for the purchase of specific software additions made during the current financial year. There are no unfulfilled conditions or contingencies attached to these grants.
				Goodwill has been allocated to the following cash-generating units for purposes of the impairment review:
373 894	349 928			Clover Industries
5 540	–			Clover Frankies
–	23 966			Clover Waters (Iced Tea business) *
379 434	373 894			Clover Industries Group
				* Included in Clover Industries in current financial year as explained above.

GROUP					COMPANY
2016 R'000	2015 R'000				2016 R'000	2015 R'000
		14	OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES
			14.1	Other financial assets
				Financial assets at fair value through profit or loss
1 800	–			Investment in Guardrisk Cell Captive
				Derivatives not designated as hedges
3 297	–			Call option to acquire remaining shares in Clover Frankies
560	–			Call option to acquire remaining shares in Clover Good Hope
5 657	–			Total financial instruments at fair value
5 657	–			Total other financial assets
–	–			Total current
5 657	–			Total non-current

Call option to acquire remaining shares in Clover Frankies

Frankies granted Clover the irrevocable right to purchase Frankies' 49% of the issued share capital in Clover Frankies (“Call shares”). The call option may be exercised by Clover any time after 30 June 2019. The purchase price of the call shares will be determined by why of an earnings before interest tax depreciation and amortisation (EBITDA) multiple formula.
((A x B) – C) x 49%

A – Average annual EBITDA of Clover Frankies for the two financial years preceding the call option or R3 million increased with CPI for each 12 month period from the effective date, whichever is the highest.
B – EBITDA multiple of 5 (five)
C – Net financial debt of Clover Frankies (should the minimum EBITDA be used, C will be Nil)
The value of the call option was calculated by comparing the expected price as per the contract to a price calculated by using a discounted cash flow model. The same assumptions were utilised in calculation the discounted cash
flow as those used for the purchase price allocation as per note 3.2.

Put option to acquire remaining shares in Clover Frankies

Clover granted Frankies the irrevocable right to sell Frankies' 49% of the issued share capital in Clover Frankies (“put shares”). The put option may be exercised by Frankies any time after 30 June 2019. The purchase price of the put
shares will be determined by why of an earnings before interest tax depreciation and amortisation (EBITDA) multiple formula.
((A x B) – C) x 49%
A – Average annual EBITDA of Clover Frankies for the two financial years preceding the call option or R3 million increased with CPI for each 12 month period from the effective date, whichever is the highest.
B – EBITDA multiple of 4 (four)
C – Net financial debt of Clover Frankies (should the minimum EBITDA be used, C will be Nil)
The value of the put option was calculated by comparing the expected price as per the contract to a price calculated by using a discounted cash flow model. The same assumptions were utilised in calculation the discounted cash
flow as those used for the purchase price allocation as per note 3.2. The valuation resulted in a postion not favourable to the holder of the put option and accordingly no liability has been recognised by the Group.

Call option to acquire remaining shares in Clover Good Hope

Good Hope granted Clover the irrevocable right to purchase Good Hope's 49% of the issued share capital in Clover Good Hope (“Call shares”). The call option may be exercised by Clover within three months after each 12 month
period from the fifth anniversary of the effective date. The purchase price of the call shares will be determined by why of an earnings before interest tax depreciation and amortisation (EBITDA) multiple formula.
((A x B) – C) x 49%
A – Average annual EBITDA of Clover Good Hope for the financial years preceding the call option
B – EBITDA multiple. If Clover's EBITDA multiple is 7 or lower the EBITDA multiple will be 6. If Clover's EBITDA multiple is above 7 then the EBITDA multiple will be 7
C – Actual average net financing cost of Clover Good Hope for the two financial years preceding the call option
The value of the call option was calculated by comparing the expected price as per the contract to a price calculated by using a discounted cash flow model. The same assumptions were utilised in calculation the discounted cash
flow as those used for the purchase price allocation as per note 3.1.

Put option to acquire remaining shares in Clover Good Hope

Clover granted Good Hope the irrevocable right to sell Good Hope's 49% of the issued share capital in Clover Good Hope (“Put shares”). The put option may be exercised by Good Hope within three months after each 12 month
period from the third anniversary of the effective date. The purchase price of the put shares will be determined by why of an earnings before interest tax depreciation and amortisation (EBITDA) multiple formula.
((A x B) – C) x 49%
A – Average annual EBITDA of Clover Good Hope for the financial years preceding the put option
B – EBITDA multiple. If Clover's EBITDA multiple is 7 or lower the EBITDA multiple will be 6. If Clover's EBITDA multiple is above 7 then the EBITDA multiple will be 7
C – Actual average net financing cost of Clover Good Hope for the two financial years preceding the put option
The value of the put option was calculated by comparing the expected price as per the contract to a price calculated by using a discounted cash flow model. The same assumptions were utilised in calculation the discounted cash
flow as those used for the purchase price allocation as per note 3.1. The valuation resulted in a position not favourable to the holder of the put option and accordingly no liability has been recognised by the Group.

GROUP				COMPANY
2016 R'000	2015 R'000			2016 R'000	2015 R'000

		14.2	Other financial liabilities
			Financial liabilities at fair value through profit or loss
			Derivatives not designated as hedging instruments:
86	–		Foreign exchange contracts
–	1 761		Diesel forward purchase contract
5 225	3 625		Clover Industries shares forward purchases
			Financial liabilities at fair value through OCI
			Derivatives designated as hedging instruments:
22 500	–		Cash flow hedge - Diesel hedge
27 811	5 386		Total financial instruments at fair value
27 811	5 386		Total other financial liabilities
25 612	2 670		Total current
2 199	2 716		Total non-current

Foreign exchange contracts

Foreign exchange contracts through profit or loss are those foreign exchange forward contracts that are not designated in hedge relationship as they are intended to reduce the level of foreign currency risk for expected sales and purchases.

Clover Industries shares forward purchase

The Group had entered into a forward contract to purchase 2 132 695 Clover Industries shares, this transaction was entered into to hedge a portion of the share appreciation rights issued to management.

The fair value of the shares forward purchases was determined by Investec Bank Limited. The fair value was determined by calculation the future settlement price after the following inputs were taken into consideration, a dividend of 3,11% (2015: 2,16%), a credit spread of 2,75% (2015: 2,75%), a spot rate of R 18,51 (2015: R17,60) and a swap interest rate reflecting the term of each tranche of the hedge.

	2016		2015
Expiry date	Number of forwards	Forward price per share (Rand)	Number of forwards	Forward price per share (Rand)
01 October 2015			308 500	19.80
01 June 2016			158 937	20.87
03 October 2016	308 500	21.40	308 500	21.40
01 June 2017	158 936	22.40	158 936	22.40
02 October 2017	308 500	23.20	308 500	23.20
03 June 2019	476 810	26.48	476 810	26.48
30 June 2017	158 937	22.29	158 937	22.29
30 June 2017	253 575	22.46	253 575	22.46
01 June 2017	158 937	22.35
30 June 2017	308 500	22.35
Total	2 132 695		2 132 695

Diesel hedge

The Group purchases diesel on an ongoing basis as its operating activities in the distribution division require a continuous supply of diesel for the transport of its own products and those of its principals. Due to the recent fluctuations in the commodities market specifically relating to the international price of oil and the effect it had on the price of diesel locally the Group entered into a diesel hedge with RMB in the form of a long-futures contract. as a result this is the first financial year the Group apply hedge accounting. The futures contracts do not result in the physical delivery of diesel, but are designated as cash flow hedges of offset the effect of the prices changes in diesel.

During the financial year the Group hedged 1 650 000 litres of ICE Gasoil per month at a average price of R 6,20 per litre. As at 30 June 2016 the Group has hedged its diesel usage until the end of February 2017 at 1 650 000 litres per month. The contracted ICE Gasoil prices are R 6.13 per litre for the first three months and R 5,10 for the last five months. Hedging the price volatility of forecast diesel purchases is in accordance with the risk management strategy outlined by the Board of Directors.

The fair values are based on the quoted price from RMB for an item with the same expiry date and a similar value, taking into account the ruling ICE Gasoil price at year end and the forecasted change in the ICE Gasoil prices until expiry of the instrument. The realised loss portion of the Ice Gasoil long-futures contract recognised in other operating expenses in the statement of profit or loss for the year was R 25,8 million (R 18,6 million net of tax), the unrealised profit portion of R 3,3 million (R 2,4 million net of tax) is reflected in other comprehensive income and will affect the profit or loss in the next financial year, depending on the move in the ICE Gasoil price.

14.3

Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique;
Level 1: quoted prices in active market for identical assets or liabilities.
Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

As at 30 June 2016, the Group held the following financial instruments carried at fair value in the Statement of Financial Position:

	GROUP
	30 June 2016 R'000	Level 1 R'000	Level 2 R'000	Level 3 R'000
Assets measured at fair value
Derivatives not designated as hedging instruments:
Call option to acquire remaining shares in Clover Frankies (Pty) Ltd	3 297	–	–	3 297
Call option to acquire remaining shares in Clover Good Hope (Pty) Ltd	560	–	–	560
Investment in cell captive	1 800	–	1 800	–
Liabilities measured at fair value
Derivatives not designated as hedging instruments:
Foreign exchange contracts	86	–	86	–
Clover Industries shares forward purchases	5 225	–	5 225	–
Derivatives designated as hedging instruments:
Diesel hedge	22 500	–	22 500	–
During the reporting period ended 30 June 2016, there were no transfers between Level 1 and Level 2 fair value measurements.
	30 June 2015 R'000	Level 1 R'000	Level 2 R'000	Level 3 R'000
Liabilities measured at fair value
Derivatives not designated as hedging instruments:
Diesel forward purchase contract	1 761	–	1 761	–
Clover Industries shares forward purchases	3 625	–	3 625	–
There were no transfers of financial instruments between Level 1, Level 2 and Level 3 fair value measurements during the year ended June 2016

Fair value measurement and valuation techniques for level 2 financial instruments

Type of financial instrument Fair value 2016	Fair value R'000	Valuation technique	Significant inputs
Financial assets at fair value through profit or loss	5 657
Call option to acquire remaining shares in Clover Frankies (Pty) Ltd	3 297	DCF	Free cash flow forecast
			Market interest rate
Call option to acquire remaining shares in Clover Good Hope (Pty) Ltd	560	DCF	Free cash flow forecast
			Market interest rate
Investment in cell captive	1 800	NAV	Cash and cash equivalents
			Investment in unit trusts
			Insurance fund liabilities
Financial liabilities at fair value through profit or loss	5 311
Foreign exchange contracts	86	DCF	Yield curves
			Market interest rate
			Market foreign exchange rate

Clover Industries shares forward purchase	5 225	DCF	Share price
			Yield curves
Financial liabilities at fair value through OCI	22 500
Diesel hedges	22 500	DCF	Market forward ICE gasoil price
			Yield curves
			Market foreign exchange rate

Fair value 2015	Fair value R'000	Valuation technique	Significant inputs
Financial liabilities at fair value through profit or loss	5 386
Diesel forward purchase contract	1 761	DCF	Market forward ICE gasoil price
			Yield curves
			Market foreign exchange rate
Clover Industries shares forward purchases	3 625	DCF	Share price
			Yield curves

GROUP				COMPANY
2016 R'000	2015 R'000			2016 R'000	2015 R'000
		Reconciliation of fair value measurement of level 3 financial assets

		Call option to acquire remaining shares in Clover Frankies (Pty) Ltd
445	–	Initial recognition through OCI
2 852	–	Remeasurement recognised through statement of profit or loss
3 297	–	Balance at the end of the year

		Call option to acquire remaining shares in Clover Good Hope (Pty) Ltd
560	–	Initial recognition through OCI
		Remeasurement recognised through statement of profit or loss
560	–	Balance at the end of the year

		15	DEFERRED TAXATION
(155 557)	(170 104)		Balance at the beginning of the year	77	77
218	14 547		Movements during the year:
(6 997)	(3 002)		Charge to profit or loss
368	1 833		Prior year over provision
(62)	(47)		Foreign currency translation effect
( 938)	–		Charge to other comprehensive income
9 193	24 940		Credit to the statement of changes in equity
(1 346)	(9 177)		Acquisition of subsidiaries
(155 339)	(155 557)		Balance at the end of the year	77	77
			The balance is constituted as follows:
			Deferred tax assets
920	694		Doubtful debts provision	77	77
5 029	5 818		Credit note accrual
1 420	1 382		Leases straight-lined
60 314	61 570		Employee related expenses that are only deductible when paid
6 582	9 194		Income received in advance
272	–		Inventory provision
18 018	7 416		Other accruals
55 939	40 709		Assessed loss carried forward
717	624		Foreign tax credits
7 773	1 854		Cash flow hedges
156 984	129 261		Total deferred tax assets	77	77

			Deferred tax liabilities
(306 491)	(277 314)		Property, plant and equipment
(1 524)	(3 873)		Prepayments
(2 798)	(1 615)		Consumable stores
(1 398)	(1 320)		Pension fund asset
(112)	(696)		Other
(312 323)	(284 818)		Total deferred tax liabilities
(155 339)	(155 557)		Net deferred tax (liability)/asset	77	77
			Reflected in the Statement of Financial Position as follows:
37 019	32 696		Deferred tax assets	77	77
(192 358)	(188 253)		Deferred tax liabilities
(155 339)	(155 557)		Net deferred tax (liability)/asset	77	77
			In assessing the availability of sufficient future taxable profit for utilisation against unused tax losses, cognisance was taken of the Group's vision, goals and strategies. The Board is of the opinion that future taxable profits would be adequate to utilise the unused tax losses.
			The Statement of Financial Position disclosure for deferred tax assets is the total amount for all Group companies with net deferred tax assets. Likewise the deferred tax liability represents the total of all companies with net deferred tax liabilities. Note 15, however, groups all deferred tax assets and liabilities in the Group, irrespective of the net position of individual Group companies.
			No deferred tax asset has been created on the tax loss of entities which are loss-making since inception of business-to-date to the value of R14 million (2015: R69 million). In addition no deferred tax asset has been created on tax losses amounting to R0,4 million (2015: Rnil million) which have no expiry date.

		16	INVENTORIES
5 800	5 800		Delivery agreements
156 746	127 986		Raw materials
112 506	100 422		Work-in-progress
107 697	91 517		Consumable stores
534 160	614 456		Finished goods
916 909	940 181		Total inventories
			The amount of the write-down of inventories recognised as an expense is R13,2 million (2015: R20,7 million). This expense is included in the cost of sales line item as a cost of inventories.

		17	TRADE AND OTHER RECEIVABLES
1 227 372	1 137 640		Trade receivables	4 129	4 170
27 335	21 683		Trade receivables from principals
73 284	64 723		Other receivables and advance payments	50 286	489
2 612	15 644		Loans to Executive Directors and other Executives	2 612	15 644
			Inter-company loan: Clover SA	546 844	502 298
			Loan: CIL Share Purchase Plan Trust	9	9
(3 847)	(2 525)		Allowance for impairment	(275)	(275)
(18 533)	(21 586)		Credit note accrual
1 308 223	1 215 579		Total trade and other receivables	603 605	522 335

			Clover SA securitised its trade debtors, excluding debtors generated from export sales, through a special-purpose entity, Clover Capital. Clover Capital is consolidated into the results of the Group.
			The loans to Directors and other Executives were made to finance ordinary shares in CIL issued to them on 31 May 2010. The terms of the loans are as follows: they will bear interest at 90% of the prime rate of Absa Bank, interest will be capitalised on a monthly basis, repayable by management on the sale of the ordinary shares or within two months of leaving the employment of Clover or within six months in the case of death. All proceeds of the ordinary shares are ceded to CIL as security for the loans. The loan agreements have been amended to make provision for a final repayment date of the respective loans linked to the normal retirement date for each of the Executives. See note 28.3 for further details.
			See note 29.5 for age analysis on trade receivables and on credit risk of trade receivables to understand how the Group manages and measures credit quality of trade receivables that are neither past due nor impaired.
			Trade receivables are non-interest-bearing and the payment terms are 30 days after the end of the month in which the goods were delivered.
			As at 30 June 2016, trade receivables of an initial value of R3,9 million (2015: R2,5 million) were impaired and fully provided for. See below for the movement in the provision for impairment of receivables.
2 525	3 849		Balance at the beginning of the year	275	275
1 671	–		Charge for the year
(349)	(1 324)		Impairment loss written off
3 847	2 525		Balance at the end of the year	275	275

		18	CASH AND SHORT-TERM DEPOSITS
			Cash at bank earns interest at floating rates based on daily deposit rates. Short-term deposits are made for periods varying between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. At 30 June 2016, the Group had available R256 million (2015: R30 million) of unutilised committed borrowing facilities in respect of which all conditions precedent had been met.
			For the purpose of the consolidated cash flow statements, cash and short-term deposits comprise the following:
			Cash at bank and on hand
266	255		On hand
113 918	82 154		Outstanding deposits
12 621	979		Call deposits	11 530	590
477 266	392 048		Cash in banks	10 341	39 425
604 071	475 436		Total cash and short-term deposits	21 871	40 015

GROUP				COMPANY
2016 R'000 Number of shares	2015 R'000 Number of shares			2016 R'000 Number of shares	2015 R'000 Number of shares
		19	SHARE CAPITAL AND SHARE PREMIUM
			Ordinary shares
			Authorised
			2 billion (2015: 2 billion) ordinary shares with a par value of 5 cents (2015: 5 cents) each
			Shares issued
187 731 138	182 478 589		Ordinary shares in issue at the beginning of the year	187 731 138	182 478 589
			Share appreciation rights exercised:
–	5 252 549		Issued on 17 March 2015	–	5 252 549
717 326	–		Issued on 1 December 2015	717 326	–
1 775 256	–		Issued on 2 March 2016	1 775 256	–
90 630	–		Issued on 22 June 2016	90 630	–
190 314 350	187 731 138		Ordinary shares in issue at the end of the year	190 314 350	187 731 138

			Ordinary share capital
9 516	9 387		190,3 million (2015: 187,7 million) ordinary shares of 5 cents (2015: 5 cents) each	9 516	9 387
			Ordinary share premium
882 774	838 363		Ordinary share premium on 190,3 million (2015: 187,7 million) ordinary shares	882 774	838 363
892 290	847 750		Total ordinary share capital and ordinary share premium	892 290	847 750
			Shares were issued as follows during the year
			Ordinary shares:
129	263		Ordinary shares of 0,5 cents (2015: 0,5 cents) each	129	263
44 411	103 949		Ordinary share premium of R17,19 (2015: R19,79) per share	44 411	103 948
44 540	104 212		Total ordinary share capital raised during the year	44 540	104 211

GROUP				COMPANY
2016 R'000	2015 R'000			2016 R'000	2015 R'000
		20	OTHER CAPITAL RESERVES
			Share-based payments reserve
72 880	73 268		Balance at the beginning of the year	10 252	28 720
12 697	18 080		Share based expense	–	–
(11 709)	(18 468)		Share appreciation rights exercised	(8 083)	(18 468)
73 868	72 880		Balance at the end of the year	2 169	10 252

			Call options
			Balance at the beginning of the year
1 005	–		Initial recognition of call options
1 005	–		Balance at the end of the year
74 873	72 880		Total other capital reserves at the end of the year	2 169	10 252

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Annual financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS