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The board of directors of Tiger Brands Limited has given general declarations in terms of section 75 of the Companies
Act on directors’ personal financial interests. These declarations indicate that certain directors hold positions of
influence in other entities which are suppliers, service providers, customers and/or competitors of Tiger Brands
Limited. Transactions conducted with these director-related customers and suppliers were on an arm’s length basis.
The sales to and purchases from related parties are made at normal market prices. Outstanding balances at the year
end reflect the gross amount and are unsecured and settlement occurs in cash. This assessment is undertaken at
each financial year through examining the financial position of the related party and the market in which they operate.
Given the ongoing liquidity and forex shortages experienced within Zimbabwe, the expected timing of receipt of the
amounts owing from these related parties has been assessed. As a result, the outstanding balances from this entity
have been fully impaired.
Details of material transactions with related parties not disclosed elsewhere in the financial statements are as follows:
|
GROUP |
(R’million) |
2021 |
|
|
|
Related party – Associates |
|
|
|
Empresas Carozzi |
– |
4,3 |
– |
National Foods Holdings Limited |
3,6 |
– |
– |
2020 |
|
|
|
Related party – Associates |
|
|
|
Empresas Carozzi |
– |
3,2 |
– |
National Foods Holdings Limited |
3,9 |
– |
– |
|
GROUP |
(R’million) |
Other related parties |
|
|
Key management personnel* |
|
|
Short-term employee benefits** |
140,0 |
94,0 |
Post-employment and medical benefits |
9,6 |
7,7 |
Share-based payments |
– |
4,6 |
Total compensation paid to key management personnel |
149,6 |
106,3 |
* |
Key management personnel comprise the top tier of the organisation and the managing executives of the individual businesses. |
** |
Certain key management personnel are paid sign-up and retention bonuses. An upfront payment is made with a two-year lock-in
provision. Total of sign-up and retention bonuses paid in 2021 amounts to R11,0 million, total expenses in employee costs amounts
to R2,3 million and total prepayment amounts to R8,7 million. |
|
2021 |
2020 |
(R’million) |
COMPANY |
|
|
|
|
Related party – intergroup Subsidiaries |
|
|
|
|
Durban Confectionery Works Proprietary Limited |
33,0 |
– |
33,0 |
– |
Tiger Consumer Brands Limited |
(48,9) |
1 570,0 |
(32,1) |
830,0 |
Tiger Brands International Holdings Limited |
266,9 |
– |
266,9 |
– |
Enterprise Foods Proprietary Limited |
0,4 |
– |
0,4 |
– |
Langeberg Holdings Limited |
500,8 |
– |
500,8 |
– |
Langeberg & Ashton Foods Proprietary Limited |
499,5 |
– |
499,5 |
– |
Tiger Food Brands Intellectual Property Holding Company Proprietary Limited |
329,6 |
– |
313,5 |
– |
Pharma I Holdings Proprietary Limited |
1 211,2 |
– |
1 211,2 |
– |
Pharma II Investments Proprietary Limited |
99,6 |
– |
99,6 |
– |
Chocolaterie Confiserie Camerounaise |
51,6 |
55,6 |
130,7 |
145,3 |
Tiger Brands Nigeria Limited |
3,1 |
– |
– |
– |
Current receivable |
51,6 |
|
130,7 |
|
Current payable |
(48,9) |
|
(32,1) |
|
Non-current loans receivable1 |
2 944,1 |
|
2 924,9 |
|
Empowerment entities |
|
|
|
|
Tiger Brands Foundation |
84,6 |
154,1 |
– |
180,3 |
Thusani II |
12,4 |
29,3 |
– |
34,5 |
Associate |
|
|
|
|
National Foods Holdings Limited |
– |
11,8 |
– |
8,7 |
1 Interest free with no fixed repayment terms. These balances are not expected to be called upon within the next 12 months.
In assessing the credit risk of intercompany transactions, the company considers the liquidity position, available cash
resources and the industry. These factors are considered to give rise to a low credit risk and therefore, no further
disclosure is required.
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