Tiger Brands | Annual Financial Statements 2023

FINANCIAL INSTRUMENTS

Hedge accounting

At the inception of a hedge relationship, the group formally designates and documents the hedge relationship to which the group wishes to apply hedge accounting as per IAS 39 and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged, and how the entity will assess the hedging instrument's effectiveness in offsetting the exposure to changes in the hedged item's fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated.

Fair value hedges

Fair value hedges cover the exposure to changes in the fair value of a recognised asset or liability, or an unrecognised firm commitment (except for foreign currency risk). Foreign currency risk of an unrecognised firm commitment is accounted for as a cash flow hedge.

The gain or loss on the hedged item adjusts the carrying amount of the hedged item and is recognised immediately in profit or loss. The gain or loss from remeasuring the hedging instrument at fair value is also recognised in profit or loss. When an unrecognised firm commitment is designated as a hedged item, the change in the fair value of the firm commitment is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss. The change in the fair value of the hedging instrument is also recognised in profit or loss in the "Operating income/(loss) before impairments and non-operational items" line in the income statement.

The group discontinues fair value hedge accounting if the hedging instrument expires or is sold, terminated, or exercised, the hedge no longer meets the criteria for hedge accounting, or the group revokes the designation.

Cash flow hedges

Cash flow hedges cover the exposure to variability in cash flows that are attributable to a particular risk associated with:

A recognised asset or liability
A highly probable forecast transaction
The foreign currency risk in an unrecognised firm commitment

The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised directly in other comprehensive income, while any ineffective portion is recognised in profit or loss.

Amounts taken to other comprehensive income are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged income or financial asset or liability is recognised or when the forecast sale or purchase occurs. Where the hedged item is the cost of a non-financial asset or liability, the amount deferred in other comprehensive income is transferred to the initial carrying amount of the non-financial asset or liability.

If the forecast transaction is no longer expected to occur, amounts previously recognised in other comprehensive income are transferred to profit or loss. If the hedging instrument expires or is sold, terminated, or exercised without replacement or rollover, or if its designation is revoked, amounts previously recognised in other comprehensive income remain in other comprehensive income until the forecast transaction occurs. If the related transaction is not expected to occur, the amount is taken to profit or loss.

Hedges of a net investment in a foreign operation

Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of the net investment, are accounted for similarly to cash flow hedges. On consolidation, gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised in other comprehensive income, while any gains or losses relating to the ineffective portion are recognised in profit or loss. On disposal of the foreign operation, the cumulative gain or loss recognised in other comprehensive income is transferred to profit or loss.

The group's objective in using financial instruments is to reduce the uncertainty over future cash flows arising principally as a result of commodity price, currency, and interest rate fluctuations. The use of derivatives for the hedging of firm commitments against commodity price, foreign currency, and interest rate exposures is permitted in accordance with group policies, which have been approved by the board of directors. Where significant finance is taken out, this is approved at board meetings.

The foreign exchange contracts outstanding at year end are market-to-market at the prevailing closing spot rate.

The group finances its operations through a combination of retained surpluses, bank borrowings and long-term loans.

The group borrows short-term funds with fixed or floating rates of interest through a subsidiary company, Tiger Consumer Brands Limited.

The main risks arising from the group's financial instruments are, in order of priority, procurement risk, foreign currency risk, interest rate risk, liquidity risk and credit risk, as detailed in the following notes.

33.1

Procurement risk (commodity price risk)

Commodity price risk arises from the group being subjected to raw material price fluctuations caused by supply conditions, weather, economic conditions and other factors. The strategic raw materials acquired by the group include wheat, maize, rice, oats and sorghum.

The group uses commodity futures and options contracts or other derivative instruments to reduce the volatility of commodity input prices of strategic raw materials. These derivative contracts are only taken out to match an underlying physical requirement for the raw material. The group does not write naked derivative contracts.

The group has developed a comprehensive risk management process to facilitate, control and monitor these risks. The procurement of raw materials takes place in terms of specific mandates given by the executive management. Position statements are prepared on a monthly basis and these are monitored by management and compared to the mandates.

The board has approved and monitors this risk management process, inclusive of documented treasury policies, counterparty limits, controlling and reporting structures.

At year end, the exposure to derivative contracts relating to strategic raw materials is as follows:

	Derivative contracts expiring within 0 to 3 months		Derivative contracts expiring within 3 to 6 months
(R'million)	Unrealised (profit)/loss at 30 September	Hedged value	Hedged value
GROUP
2023
Maize and wheat
Options	(0,4)	–	–
Futures	–	137,5	–
2022
Maize and wheat
Options	(1,1)	–	11,2
Futures	(2,3)	(42,0)	–

Commodity price sensitivity is not applicable to the company.

Foreign currency risk

The group enters into various types of foreign exchange contracts as part of the management of its foreign exchange exposures arising from its current and anticipated business activities. A hedge ratio of 100% is used for normal foreign exchange transactions and a portfolio approach with varying hedge ratios is used for the foreign exchange export and specific raw materials foreign exchange import strategies.

As the group operates in various countries and undertakes transactions denominated in foreign currencies, exposures to foreign currency fluctuations arise. Exchange rate exposures on transactions are managed within approved policy and strategy parameters, utilising forward exchange contracts or other derivative financial instruments in conjunction with external consultants who provide financial services to group companies as well as contributing to the management of the financial risks relating to the group's operations.

The group does not hold foreign exchange contracts in respect of foreign borrowings, as its intention is to repay these from its foreign income stream or subsequent divestment of its interest in the operation. Foreign exchange differences relating to investments, net of their related borrowings, are reported as translation differences in the group's net other comprehensive income until the disposal of the net investment, at which time exchange differences are recycled through profit or loss.

Forward exchange contracts are entered into to cover import exposures and export exposures, on an individual currency basis. The fair value is determined using the applicable foreign exchange spot rates at 30 September 2023.

33.2

Foreign currency risk

The exposure and concentration of foreign currency risk are included in the table below.

(R'million)	South African rand	US dollar	Nigerian naira	Central African franc	Other*	Total
GROUP
2023
Financial assets
Other investments	552,8	–	–	–	–	552,8
Loans	54,3	–	–	–	–	54,3
Trade and other receivables	3 970,0	117,5	–	100,8	47,1	4 235,4
Cash and cash equivalents	601,3	55,7	107,1	1,7	10,1	775,9
Financial liabilities
Borrowings	(2 094,4)	–	–	(0,3)	–	(2 094,7)
Trade and other payables	(4 906,4)	(204,1)	–	(46,7)	(24,1)	(5 181,3)
2022^
Financial assets
Other investments	507,8	–	–	–	–	507,8
Loans	50,4	–	–	–	–	50,4
Trade and other receivables	3 335,6	102,3	–	71,5	84,0	3 593,4
Cash and cash equivalents	380,5	269,9	170,3	274,6	20,6	1 115,9
Financial liabilities
Borrowings	(1 493,0)	–	–	(0,7)	–	(1 493,7)
Trade and other payables	(5 293,7)	(331,6)	–	–	(35,9)	(5 661,2)
COMPANY
2023
Financial assets
Amounts owed by subsidiaries	2 627,4	–	–	–	–	2 627,4
Other investments	1 833,5	–	–	–	–	1 833,5
Loans	1,0	–	–	–	–	1,0
Trade and other receivables	6,7	–	–	–	–	6,7
Cash and cash equivalents	245,6	0,4	107,1	–	0,8	353,9
Financial liabilities
Amounts owed to subsidiaries	(9,4)	–	–	–	–	(9,4)
Trade and other payables	(39,2)	–	–	–	–	(39,2)
2022^
Financial assets
Amounts owed by subsidiaries	2 679,7	–	–	–	–	2 679,7
Other investments	1 874,8	–	–	–	–	1 874,8
Loans	1,1	–	–	–	–	1,1
Trade and other receivables	1,2	1,5	–	–	–	2,7
Cash and cash equivalents	28,5	186,1	170,3	–	3,3	388,2
Financial liabilities
Amounts owed to subsidiaries	(69,9)	–	–	–	–	(69,9)
Trade and other payables	(52,6)	–	–	–	–	(52,6)

* Other includes the Australian dollar, Canadian dollar, Japanese yen, Swiss franc, New Zealand dollar, Pound sterling and Euro
^ The above tables have been enhanced to reflect key trading currencies. The comparative information has been amended to align with that of the current financial year

The following spot rates were used to translate financial instruments denominated in foreign currency:

	Assets	Liabilities	Average	Assets	Liabilities	Average
	2023			2022
GROUP
US dollar	18,82	18,84	18,83	17,98	17,98	17,98
Pound sterling	23,00	23,02	23,01	20,01	20,03	20,02
Euro	19,91	19,94	19,93	17,57	17,58	17,58

Cash flow hedges

At 30 September 2023, the group had foreign exchange contracts outstanding, designated as hedges of future purchases, from suppliers outside South Africa, for which the group has firm commitments or highly likely forecast transactions.

	Foreign currency (millions)	Average rate	Rand (millions)	Foreign currency (millions)	Average rate	Rand (millions)
	2023			2022
GROUP
Foreign currency purchased
US dollar	21,8	18,96	412,5	39,8	17,40	693,1
Pound sterling	4,9	24,26	117,7	3,3	20,14	67,1
Euro	6,1	20,53	124,3	9,7	18,03	174,7
Japanese yen	40,7	0,13	5,3	126,1	0,12	15,6
Foreign currency sold
US dollar	33,8	18,99	642,0	34,7	16,62	576,9
Pound sterling	1,7	24,40	41,1	2,4	21,20	50,6
Euro	5,9	21,52	127,3	8,7	18,28	158,3
Canadian dollar	2,9	14,56	42,4	1,4	13,22	19,1
Australian dollar	4,9	12,84	62,8	6,9	11,79	81,0
Nigerian naira*	4 468,9	0,02	89,6	4 304,6	0,03	136,4
Unhedged foreign currency monetary assets
US dollar	1,5	18,82	28,4	2,8	17,98	51,2
Pound sterling	–	–	–	–	–	–
Euro	–	–	–	–	–	–
Other currencies	–	–	–	–	–	–
Unhedged foreign currency monetary liabilities
US dollar	–	–	–	–	–	–
Euro	–	–	–	–	–	–
Other currencies	–	–	–	–	–	–
COMPANY
Foreign currency sold
US dollar	5,3	16,91	89,6	9,0	15,09	136,4
Nigerian naira*	4 468,9	0,02	89,6	4 304,6	0,03	136,4

* Synthetic forward option

The terms of the forward currency contracts have been negotiated to match the terms of the commitments within regulatory constraints.

The cash flow hedge of expected future purchases was assessed to be effective and an unrealised loss of R5,4 million (2022: unrealised loss of R56,8 million) relating to the hedging instrument was included in other comprehensive income.

Timing of cash flows relating to foreign currency is as follows:

Foreign currency purchased (in millions)	1 to 6 months
GROUP
US dollar	22,1
Pound sterling	4,8
Euro	6,1
Japanese yen	40,7

These are expected to affect the income statement in the following year.

During the year, R0,9 million was raised (2022: R5,9 million released) from other comprehensive income and included in the carrying amount of the non-financial asset or liability (highly probable forecast transactions).

There are no forecast transactions for which hedge accounting was previously used but is no longer expected to occur.

Ineffective hedges to the value of R6,7 million (2022: R8,4 million) have been recognised in profit or loss.

Ineffective hedges were as a result of:

Non-market-related currency rates
Extreme volatility in the foreign exchange market
Temporary non-alignment between interest rate changes and forward rates

The cash flow hedge of expected future sales was assessed to be effective and an unrealised profit of R4 million (2022: unrealised profit R17,0 million) relating to the hedging instrument was included in other comprehensive income.

Timing of cash flows relating to foreign currency is as follows:

Group

Foreign currency purchased (in millions)	1 to 6 months	7 to 12 months
GROUP
US dollar	8,9	25,2
Pound sterling	0,6	1,3
Euro	1,7	5,0
Canadian dollar	0,3	2,6
Australian dollar	1,8	3,1
Nigerian naira	4 468,9	–
COMPANY
US dollar	5,3	–
Nigerian naira	4 468,9	–

These are expected to affect the income statement in the following year.

During the year, R1,3 million (2022: R6,2 million) was released from other comprehensive income and included in the carrying amount of the non-financial asset or liability (highly probable forecast transactions).

There are no forecast transactions for which hedge accounting was previously used but is no longer expected to occur.

Ineffective hedges to the value of R5 million (2022: R0,8 million) have been recognised in profit or loss.

Ineffective hedges were as a result of:

Non-market-related currency rates
Extreme volatility in the foreign exchange market
Temporary non-alignment between interest rate changes and forward rates

Foreign currency sensitivity

The following table details the group's and company's sensitivity to a 10% weakening/strengthening in the ZAR against the respective foreign currencies.

The sensitivity analysis includes only material outstanding foreign currency denominated monetary items as detailed in the table above, and adjusts their translation at the reporting date for a 10% change in foreign currency rates. A positive number indicates an increase in profit or loss and other comprehensive income where the ZAR weakens against the relevant currency.

	Other comprehensive income		Profit or loss		Equity
(R’million)	2023	2022ˆ	2023	2022ˆ	2023	2022ˆ
GROUP
USD + 10%	34,0	52,3	(56,9)	13,4	(16,8)	47,3
USD – 10%	(34,0)	(52,3)	56,9	(13,4)	16,8	(47,3)
Pound sterling + 10%	5,9	2,4	1,6	0,8	5,4	2,3
Pound sterling – 10%	(5,9)	(2,4)	(1,6)	(0,8)	(5,4)	(2,3)
EUR + 10%	(3,3)	1,3	2,9	0,3	(0,2)	1,2
EUR – 10%	3,3	(1,3)	(2,9)	(0,3)	0,2	(1,2)
Other + 10%	0,7	(3,5)	(19,7)	8,9	(13,9)	3,9
Other – 10%	(0,7)	3,5	19,7	(8,9)	13,9	(3,9)
Total + 10%	37,2	52,5	(72,1)	23,3	(25,5)	54,6
Total – 10%	(37,2)	(52,5)	72,1	(23,3)	25,5	(54,6)
COMPANY
USD + 10%	–	–	(9,0)	36,0	(6,5)	25,9
USD – 10%	–	–	9,0	(36,0)	6,5	(25,9)
Other + 10%	–	–	10,0	8,6	(7,3)	6,2
Other – 10%	–	–	(10,0)	(8,6)	7,3	(6,2)
Total + 10%	–	–	(19,0)	44,6	(13,9)	32,1
Total – 10%	–	–	19,0	(44,6)	13,9	(32,1)

ˆ Disclosure in the above table have ben enhanced to adequately reflect the foreign currency sensitivities, resulting in an amendment to the comparative information

Forex currency sensitivity on associates

The following table details the group's sensitivity to a 5% weakening/strengthening in the ZAR against the Chilean peso, a 5% weakening/strengthening in the ZAR against the US dollar, and a 20% weakening/strengthening in the ZAR against the Zimbabwean dollar.

	Other comprehensive income
(R’million)	2023	2022
GROUP
Chilean peso + 5%	(134,1)	(108,7)
Chilean peso – 5%	148,2	120,2
US dollar + 5%	13,6	–
US dollar – 5%	(13,6)	–
Zimbabwean dollar + 20%	–	26,5
Zimbabwean dollar – 20%	–	(26,5)
Total + 5% to 20%	(120,2)	(82,2)
Total – 5% to 20%	134,3	93,7

33.3

Interest rate risk management

Interest rate risk results from the cash flow and financial performance uncertainty arising from interest rate fluctuations.

Financial assets and liabilities affected by interest rate fluctuations include bank and cash deposits as well as bank borrowings. At the reporting date, the group cash deposits were accessible immediately or had maturity dates of up to six months. The interest rates earned on these deposits closely approximate the market rates prevailing.

Interest rate sensitivity

The sensitivity analysis addresses only the floating interest rate exposure emanating from the net cash position. The interest rate exposure has been calculated, with the stipulated change taking place at the beginning of the financial year, and held constant throughout the reporting period.

If interest rates had increased/(decreased) by 1% and all other variables were held constant, the profit for the year ended would decrease/(increase) as detailed in the table below due to the use of the variable interest rates applicable to the long-term borrowings and short-term borrowings. The fixed interest rate on the borrowings would not affect the financial performance. Any gain or loss would be unrealised, and consequently, the notional impact is not presented.

	GROUP
(R’million)	2023	2022
Profit/(loss) before tax
ZAR borrowings/deposits
(+ 1%)/- 1%	(28,5)	(13,9)
Profit/(loss) after tax
ZAR borrowings/deposits
(+ 1%)/- 1%	(20,8)	(10,0)

	COMPANY
(R’million)	2023	2022
Profit/(loss) before tax
ZAR borrowings/deposits
(+ 1%)/- 1%	8,0	9,6
Profit/(loss) after tax
ZAR borrowings/deposits
(+ 1%)/- 1%	5,8	6,9

33.4

Liquidity risk management

Liquidity risk arises from the seasonal fluctuations in short-term borrowing positions. A material and sustained shortfall in cash flows could undermine investor confidence and restrict the group's ability to raise funds.

The group manages its liquidity risk by monitoring weekly cash flows and ensuring that adequate cash is available or borrowing facilities maintained. In terms of the memorandum of incorporation, the group's borrowing powers are unlimited.

The group's liquidity exposure is represented by the aggregate balance of financial liabilities as indicated in the categorisation table in note 33.7.

Contractual maturity for non-derivative financial liabilities

The following tables detail the group's and company's remaining contractual maturity for non-derivative financial liabilities.

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the group and company will be required to pay. The table includes both interest and principal cash flows. The "finance charge" column represents the possible future cash flows attributable to the instrument included in the maturity analysis, which are not included in the carrying amount of the financial liability.

Net trade and other payables are generally settled between 30 to 45 days and, as such, most of the balance reflected in note 33 in the zero to 0 – 6 months category will be 0 – 2 months.

(R'million)	Carrying amount	Finance charge	0 to 6 months	7 to 12 months	1 to 5 years	>5 years
GROUP
2023
Trade and other payables	5 181,3	–	5 181,3	–	–	–
Lease liabilities	395,9	(63,2)	118,9	95,3	221,3	23,6
Short-term borrowings*	696,7	–	696,7	–	–	–
Long-term borrowings*	1 002,1	–	–	–	1 002,1	–
Guarantees not on the statement of financial position
	35,3		35,3
Total	7 311,3	(63,2)	6 032,2	95,3	1 223,4	23,6
2022^
Trade and other payables	5 661,2	–	5 661,2	–	–	–
Lease liabilities	520,9	(66,0)	112,8	113,4	344,1	16,6
Short-term borrowings*	972,8	–	972,8	–	–	–
Guarantees not on the statement of financial position	35,3		35,3
Total	7 190,2	(66,0)	6 782,1	113,4	344,1	16,6
COMPANY
2023
Trade and other payables	39,2	–	39,2	–	–	–
Amounts owed to subsidiaries	9,4	–	9,4	–	–	–
Guarantees not on the statement of financial position	15,3	–	15,3	–	–	–
Total	63,9	–	63,9	–	–	–
2022^
Trade and other payables	52,6	–	52,6	–	–	–
Amounts owed to subsidiaries	69,9	–	69,9	–	–	–
Guarantees not on the statement of financial position	3,5	–	3,5	–	–	–
Total	126,0	–	126,0	–	–	–

* These are repayable on demand and subject to annual review
ˆˆ Disclosure in the above tables have been enhanced to adequately reflect the liquidity risk management, resulting in an amendment to the comparative information

33.5

Credit risk management

GROUP

Credit risk arises from the risk that a counterparty may default or not meet its obligations timeously. The group limits its counterparty exposure arising from financial instruments by only dealing with well-established institutions of high credit standing. The group does not expect any counterparties to fail to meet their obligations given their high credit ratings.

Credit risk in respect of the group's customer base is controlled by the application of credit limits and credit monitoring procedures. Certain significant receivables are monitored on a daily basis. Where appropriate, credit guarantee insurance is obtained.

The group's credit exposure, in respect of its customer base, is represented by the net aggregate balance of amounts receivable. Concentrations of credit risk are disclosed in note 21.

COMPANY

Credit risk exposure at 30 September 2023 relating to guarantees amounted to R15,3 million (2022: R3,5 million). Refer to note 32.

33.6

Capital management

The primary objective of the company and group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The company and group manage their capital structure, calculated as equity plus net debt, and make adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the company and group may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, or increase or decrease levels of debt. No changes were made in the objectives, policies, or processes during the years ended 30 September 2023 and 30 September 2022.

The company and group monitor capital using a gearing ratio, which is net debt divided by total equity. The company and group target a long-term gearing ratio of 20% to 30%, except when major investments are made where this target may be exceeded. During the prior year, the group embarked on a share buy-back programme of 9 490 946 shares, which is in line with the policy to maintain the gearing ratio.

	GROUP		COMPANY
(R’million)	2023	2022 Restated^#	2023	2022
Cash and cash equivalents	(775,9)	(1 115,9)	(353,9)	(388,2)
Long-term borrowings	1 211,0	326,5	–	–
Short-term borrowings	883,7	1 167,2	–	–
Net debt/(cash)	1 318,8	377,8	(353,9)	(388,2)
Total equity	17 304,2	15 751,2	8 759,4	9 002,0
Net debt/(cash) to equity (%)	7,6	2,4	(4,0)	(4,3)

^# Refer to note 36 for details on restatements

33.7

Categorisation of assets and liabilities

(R'million)	Financial assets at amortised cost	Financial assets at fair value through OCI	Other liabilities at amortised cost	Financial instruments at fair value through profit or loss	Total financial items	Non- financial items	Total per statement of financial position
GROUP
2023
Non-current assets
Property, plant and equipment	–	–	–	–	–	6 101,6	6 101,6
Goodwill	–	–	–	–	–	1 651,2	1 651,2
Intangible assets	–	–	–	–	–	1 409,9	1 409,9
Investments in associated companies	–	–	–	–	–	3 092,0	3 092,0
Other investments	203,1	332,6	–	17,1	552,8	8,7	561,5
Loans	54,3	–	–	–	54,3	–	54,3
Deferred tax asset	–	–	–	–	–	44,2	44,2
Current assets
Trade and other receivables	4 226,5	–	–	8,9	4 235,4	407,0	4 642,4
Inventories	–	–	–	–	–	7 503,6	7 503,6
Cash and cash equivalents	775,9	–	–	–	775,9	–	775,9
Total	5 259,8	332,6	–	26,0	5 618,4	20 218,2	25 836,6
Shareholders’ equity	–	–	–		–	(17 304,2)	(17 304,2)
Non-current liabilities
Long-term borrowings	–	–	(1 211,0)	–	(1 211,0)	–	(1 211,0)
Post-retirement medical aid obligations	–	–	–	–	–	(238,0)	(238,0)
Deferred taxation liability	–	–	–	–	–	(322,7)	(322,7)
Current liabilities
Trade and other payables	–	–	(5 181,3)	–	(5 181,3)	(588,7)	(5 770,0)
Taxation	–	–	–	–	–	(107,0)	(107,0)
Short-term borrowings	–	–	(883,7)	–	(883,7)	–	(883,7)
Total	–	–	(7 276,0)	–	(7 276,0)	(18 560,6)	(25 836,6)

(R'million)	Financial assets at amortised cost	Financial assets at fair value through OCI	Other liabilities at amortised cost	Financial instruments at fair value through profit or loss	Total financial items	Non- financial items	Total per statement of financial position
GROUP
2022 – Restated^{#^}
Non-current assets
Property, plant and equipment	–	–	–	–	–	5 817,2	5 817,2
Goodwill	–	–	–	–	–	1 645,2	1 645,2
Intangible assets	–	–	–	–	–	1 397,2	1 397,2
Investments in associated companies	–	–	–	–	–	2 421,2	2 421,2
Other investments	242,3	253,5	–	12,0	507,8	8,0	515,8
Loans	50,4	–	–	–	50,4	–	50,4
Deferred tax asset	–	–	–	–	–	34,3	34,3
Current assets
Trade and other receivables	3 576,9	–	–	16,5	3 593,4	362,2	3 955,6
Inventories	–	–	–	–	–	7 124,4	7 124,4
Cash and cash equivalents	1 115,9	–	–	–	1 115,9	–	1 115,9
Total	4 985,5	253,5	–	28,5	5 267,5	18 809,7	24 077,2
Shareholders’ equity
Non-current liabilities	–	–	–	–	–	(15 751,2)	(15 751,2)
Long-term borrowings	–	–	(326,5)	–	(326,5)	–	(326,5)
Post-retirement medical aid obligations	–	–	–	–	–	(322,9)	(322,9)
Deferred taxation liability	–	–	–	–	–	(240,7)	(240,7)
Current liabilities
Trade and other payables	–	–	(5 641,4)	(19,8)	(5 661,2)	(480,9)	(6 142,1)
Taxation	–	–	–	–	–	(126,6)	(126,6)
Short-term borrowings	–	–	(1 167,2)	–	(1 167,2)	–	(1 167,2)
Total	–	–	(7 135,1)	(19,8)	(7 154,9)	(16 922,3)	(24 077,2)

^# Refer to note 36 for details on restatements
^ Total financial items and total per the statement of financial position have been included in the table above to enhance disclosure. The comparative amounts have been amended to align with that of the current financial year

Refer to the accounting policies for further details on the above classifications.

(R'million)	Financial assets at amortised cost	Financial assets at fair value through OCI	Other liabilities at amortised cost	Financial instruments at fair value through profit or loss	Total financial items	Non- financial items	Total per Statement of financial position
COMPANY
2023
Non-current assets
Interest in subsidiary companies	–	–	–	–	–	4 091,3	4 091,3
Amounts owed by subsidiaries	2 627,4	–	–	–	2 627,4	–	2 627,4
Investments in associated companies	–	–	–	–	–	97,1	97,1
Other investments	–	27,9	–	1 805,6	1 833,5	–	1 833,5
Loans*	1,0	–	–	–	1,0	–	1,0
Current assets
Trade and other receivables	6,7	–	–	–	6,7	–	6,7
Cash and cash equivalents	353,9	–	–	–	353,9	–	353,9
Total	2 989,0	27,9	–	1 805,6	4 822,5	4 188,4	9 010,9
Shareholders' equity	–	–	–	–	–	(8 955,6)	(8 955,6)
Non-current liabilities
Deferred taxation liability	–	–	–	–	–	(5,0)	(5,0)
Current liabilities
Trade and other payables	–	–	(39,2)	–	(39,2)	–	(39,2)
Taxation	–	–	–	–	–	(1,7)	(1,7)
Amounts owed to subsidiaries	–	–	(9,4)	–	(9,4)	–	(9,4)
Total	–	–	(48,6)	–	(48,6)	(8 962,3)	(9 010,9)

* Includes owed by subsidiaries

(R'million)	Financial assets at amortised cost	Financial assets at fair value through OCI	Other liabilities at amortised cost	Financial instruments at fair value through profit or loss	Total financial items	Non- financial items	Total per statement of financial position
COMPANY
2022 – Restated^{#^}
Non-current assets
Interest in subsidiary companies	–	–	–	–	–	4 085,5	4 085,5
Amounts owed by subsidiaries	2 594,7	–	–	–	2 594,7	–	2 594,7
Investments in associated companies	–	–	–	–	–	97,1	97,1
Other investments	–	23,8	–	1 851,0	1 874,8	–	1 874,8
Loans*	1,1	–	–	–	1,1	–	1,1
Current assets
Trade and other receivables	2,7	–	–	–	2,7	0,4	3,1
Amounts owed by subsidiaries	85,0	–	–	–	85,0	–	85,0
Cash and cash equivalents	388,2	–	–	–	388,2	–	388,2
Total	3 071,7	23,8	–	1 851,0	4 946,5	4 183,0	9 129,5
2022ˆ
Shareholders' equity	–	–	–	–	–	(9 002,0)	(9 002,0)
Non-current liabilities
Deferred taxation liability	–	–	–	–	–	(5,0)	(5,0)
Current liabilities
Trade and other payables	–	–	(52,6)	–	(52,6)	–	(52,6)
Taxation	–	–	–	–	–	–	–
Amounts owed to subsidiaries	–	–	(69,9)	–	(69,9)	–	(69,9)
Total	–	–	(122,5)	–	(122,5)	(9 007,0)	(9 129,5)

^#Refer to note 36 for details on restatements
* Includes owed by subsidiaries
^ Total financial items and total per the statement of financial position have been included in the table above to enhance disclosure. The comparative amounts have been amended to align with that of the current financial year

Refer to the accounting policies for further details on the above classifications.

33.8

Fair value hierarchy

Financial instruments are normally held by the group until they close out in the normal course of business. The fair values of the group's financial instruments, which principally comprise put, call and futures positions with SAFEX, forward exchange contracts, and JSE-listed investments, approximate their carrying values. The maturity profile of these financial instruments fall due within 12 months.

There are no significant differences between carrying values and fair values of financial assets and liabilities.

Trade and other receivables, amounts owed by subsidiaries, investments and loans, and trade and other payables carried on the statement of financial position approximate the fair values.

Long-term and short-term borrowings are measured at amortised cost using the effective interest rate method and the carrying amounts approximate their fair value.

The group used the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted prices in active markets for identical assets or liabilities
Level 2: Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly)
Level 3: Inputs for the asset or liability that are unobservable

As at 30 September, the group held the following financial instruments measured at fair value:

Financial instrument	Fair value hierarchy	Valuation technique and key inputs
Assets measured at fair value
Financial assets
Other investments	Level 1 to 3	Level 1: Quoted market prices for the same instrument
		Level 2: Quoted exchange rates
		Level 3: Discounted cash flow; risk-free ZAR interest rate
Derivatives	Level 2	Quoted exchange rates
Liabilities
Derivatives	Level 2	Quoted exchange rates

	Level 1	Level 2	Level 3*	Total	Level 1	Level 2	Level 3*	Level 1
(R’million)	2023				2022 – Restated^#
GROUP
Assets measured at fair value
Financial assets
Other investments^	332,6	–	17,1	349,7	253,5	–	12,0	265,5
Derivatives	–	8,9	–	8,9	–	16,5	–	16,5
Liabilities
Derivatives	–	–	–	–	–	(19,8)	–	(19,8)
COMPANY
Assets measured at fair value
Financial assets
Other investments**	–	–	1 833,5	1 833,5	–	–	1 874,7	1 874,7

*	The value of the investment in Group Risk Holdings and Group Risk Mutual Limited is based on Tiger Brand’s proportionate share of the net asset value of the company. There are no other significant inputs that are used in the valuation and any changes in these inputs would not result in a significant fair value change. There were no transfers between fair value levels
**	The preference shares carry interest at a market-related interest rate of 10,99%. Listed shares back the preference shares. The return on the preference shares takes into consideration the value of the underlying instruments. Decreases in the value of the underlying investments affect the value of the preference shares. The value of the preference shares would, therefore, decrease in line with decreases in the underlying instruments
^#	Refer to note 36 for details on restatements
^{^}	Included in level 1 other investments are 100 000 shares in Spar Group Limited with a market value of R116,28 per share (2022: 100 000 shares with a market value of R140,37 per share), 120 000 shares in JSE Limited with a market value of R92,28 per share (2022: 120 000 shares with a market value of R101,12 per share), 806 540 shares in Adcock Ingram Limited with a market value of R57,00 per share (2022: 873 222 shares with a market value of R45,55 per share), 3 494 807 shares in Oceana Limited with a market value of R75,50 per share (2022: 3 515 349 shares with a market value of R53,26 per share)