| |
|
Onerous |
Discontinued |
Environmental |
Leave pay |
|
|
|
| |
|
contract |
operation |
rehabilitation |
and bonuses |
Warranties |
Total |
|
| |
|
Rm |
Rm |
Rm |
Rm |
Rm |
Rm |
|
26.
|
PROVISIONS
|
|
|
|
|
|
|
|
| |
2005 |
|
|
|
|
|
|
|
| |
GROUP |
|
|
|
|
|
|
|
| |
Balance at the |
|
|
|
|
|
|
|
| |
beginning of the year |
4,8 |
– |
2,0 |
27,6 |
1,0 |
35,4 |
|
| |
Additional provision |
|
|
|
|
|
|
|
| |
raised during the year |
– |
10,9 |
– |
16,7 |
– |
27,6 |
|
| |
Utilised during the year |
(2,7) |
(6,6) |
(0,7) |
(13,1) |
(0,2) |
(23,3) |
|
| |
Balance at the end of the year |
2,1 |
4,3 |
1,3 |
31,2 |
0,8 |
39,7 |
|
| |
| |
|
Leave pay |
|
|
| |
|
and bonuses |
Total |
|
| |
|
Rm |
Rm |
|
| |
COMPANY |
|
|
|
| |
Balance at the beginning of the year |
0,1 |
0,1 |
|
| |
Raised during the year |
4,7 |
4,7 |
|
| |
Balance at the end of the year |
4,8 |
4,8 |
|
Onerous contract |
|
The onerous contract provision relates to a supply agreement in the discontinued division of Wayne Rubber, whereby unavoidable direct losses were incurred in the production of certain products for a major customer. This agreement has been cancelled during the year and the remaining provision relates to the agreed settlement amount with the customer. |
|
Discontinued operation
|
|
This provision arose on the discontinuation of the Wayne Rubber Division (refer
note 46). It is expected that the discontinuance will be completed by the
end of March 2006. |
|
Environmental rehabilitation
|
|
A provision has been made for environmental rehabilitation of a property based on technical advice and management estimates. The provision is utilised as the rehabilitation takes place. The rehabilitation process is ongoing. |
|
Leave pay and bonuses
|
|
Leave pay is calculated on a total cost–to–company basis. Bonuses are
calculated according to the rules of pre–approved incentive schemes. |
|
Warranties
|
|
The provision for warranties is based on a general provision of 2% of auto kit sales for the last four months before year end, and 100% of return advices not yet credited and other actual disputes. Various entities in the group give three year warranties on certain products and undertake to repair or replace items which fail to perform satisfactorily. The provision is also based on historic claims and the level of repairs and returns. |
