|
PROVISIONS
|
|
2019
Rm |
| Provisions are made up as follows (refer also note 1(t)): |
|
|
|
|
| At 1 April |
|
|
|
|
| Long-service awards |
|
58 |
|
53 |
| Short-term incentives |
|
67 |
|
61 |
|
|
125 |
|
114 |
| Created during the year |
|
|
|
|
| Long-service awards(1) |
|
12 |
|
7 |
| Short-term incentives |
|
63 |
|
57 |
| Transfer |
|
|
|
12 |
|
|
75 |
|
76 |
| Utilised during the year |
|
|
|
|
| Long-service awards |
|
(6) |
|
(7) |
| Short-term incentives |
|
(61) |
|
(58) |
|
|
(67) |
|
(65) |
| At 31 March |
|
|
|
|
| Long-service awards |
|
64 |
|
58 |
| Short-term incentives |
|
69 |
|
67 |
| Total provisions (note 1(t)) |
|
133 |
|
125 |
| Less: Current portion |
|
(75) |
|
(74) |
| Non-current portion |
|
58 |
|
51 |
Long-service awards
The group pays its employees a long-service benefit. The benefit is paid when employees reach predetermined years
of service. The method of accounting and frequency of valuation are similar to those used for defined benefit schemes.
The actuarial valuation to determine the liability is performed annually by independent actuaries using the projected unit
credit method.
|
|
2019
Rm |
| Movement in unfunded obligation: |
|
|
|
|
| Benefit obligation at 1 April |
|
58 |
|
53 |
| Interest cost |
|
5 |
|
5 |
| Service cost |
|
5 |
|
5 |
| Actuarial loss/(gain) |
|
2 |
|
(4) |
| Transfers |
|
– |
|
5 |
| Benefits paid |
|
(6) |
|
(6) |
| Obligation at 31 March |
|
64 |
|
58 |
| The amounts recognised in the income statement are as follows: |
|
|
|
|
| Interest cost |
|
5 |
|
5 |
| Current service cost |
|
5 |
|
5 |
| Actuarial loss/(gain) |
|
2 |
|
(4) |
|
|
12 |
|
6 |
| The principal actuarial assumptions used for accounting purposes are: |
|
|
|
|
| Discount rate |
|
8.70% |
|
9.20% |
| Inflation rate |
|
4.20% |
|
5.40% |
| Salary increase rate |
|
4.70% |
|
5.90% |
| Pre-retirement mortality rate |
|
SA 85 – 90
(Light) table |
|
SA 85 – 90
(Light) table |
| The present value of the long-service award obligations for the current and prior |
|
|
|
|
| years are as follows: |
|
|
|
|
| Present value of unfunded obligations(1) |
|
64 |
|
58 |
| Experience adjustment on plan obligations |
|
– |
|
– |
| (1) |
In order to reduce costs, the group amended its policy that with effect from 1 April 2020, certain employees would no longer be eligible for long-service awards. |
There are no plan assets in respect of the long-service award liability.
Due to the nature of the long-service award provisions the timing of their utilisation is uncertain. The short-term incentives
provision is expected to be fully utilised within the next 12 months.
|
