Annual Report - JD Group

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Notes to the Group annual financial statements continued 23. Employee benefit plans 23.1 Retirement benefits The Group has made provision for pension and provident schemes covering substantially all employees. All eligible employees are members of either a defined benefit or a defined contribution scheme administered by Alexander Forbes Financial Services, Old Mutual Employee Benefits Industry Funds Unit or the Social Security Fund in Poland. One defined benefit scheme and 12 defined contribution schemes are in operation. The assets of these schemes are held in administered trust funds separated from the Group’s assets. Scheme assets primarily consist of listed shares, property trust units and fixed income securities. The schemes are governed by the South African Pension Funds Act of 1956 or the Polish Social Securities System Act of 1998. The defined benefit fund is valued actuarially at intervals of not more than three years using the projected unit credit method. The scheme was valued for financial reporting purposes at year end. The date of the next statutory actuarial valuation is 31 December 2004. In arriving at their conclusion, the actuaries took into account the following reasonable long term estimates: 52 2004 2003 % % Inflation 5,0 7,0 Increase in salaries 6,5 8,5 Increase in pensions 2,8 4,7 Return on investment 10,0 12,0 Discount rate 10,0 12,0 The actuarially determined fair value of the assets of the defined benefit scheme was R91 million (2003: R83 million) which corresponds with the market value at that date. This is sufficient to cover the benefits that had accrued to members, allowing for expected future increases in earnings, amounting to R67 million (2003: R64 million). 2004 2003 Rm Rm Cost recognised 6,9 6,3 Current service cost 3,6 4,0 Interest cost 6,7 7,8 Expected return on plan assets (8,6) (8,5) Asset utilised 5,2 3,0 As the Group has not conducted the surplus apportionment process as required by the Pension Funds Amendment Act, 2001, ownership of the surplus, if any, cannot be determined. As a result, the surplus in the fund has not been recognised as an asset. Any deficit as determined by the actuaries is funded either immediately or through increased contributions to ensure the ongoing soundness of the scheme. 23.2 Disability fund The Group has a commitment to the Group Disability Fund of R6,3 million for estimated current and future benefits in respect of 108 members which is fully provided for.
24. JD Group/Nedcor alliance The JD Group/Nedcor Alliance (JDNA) was formed 38 months ago. The JDNA is governed by a supervisory board on which JD Group is represented by I D Sussman, H C Strauss and J L Bezuidenhout and is further made up of Nedcor executives. The lending business, which is an Alliance between Nedcor Limited and Capital One Services, Inc. (CNA), carries the loan book. The gross value of the loan book at 31 August 2004 amounts to R242 million (2003: R250 million). JD Group is at risk to the value of 25% of this loan book. Profits or losses in the lending business are paid by CNA to JDNA by way of a fee. In addition, an originating fee is paid by CNA to JDNA for the new business it generates. The JDNA has a year end of 31 December, which is in line with Nedcor Limited’s year end. This information is unaudited. 53 2004 2003 Rm Rm Abridged income statement Fees received from CNA 29,7 22,5 Other income 2,5 1,2 Administration overheads (28,1) (32,4) Finance costs (4,1) (5,5) Net loss for the period – (14,2) JD share of net loss (50%) – (7,1) Abridged balance sheet Assets Non-current assets Property, plant and equipment Current assets 4,7 6,5 Accounts receivable 0,6 1,1 Intercompany 10,6 7,4 Total assets 15,9 15,0 Equity and liabilities Equity and reserves Shareholders’ equity Current liabilities 5,3 6,1 Deposits 10,6 8,9 Total equity and liabilities 15,9 15,0 The Alliance has been terminated by mutual consent between the parties with effect from 19 November 2004 as detailed in note 26.
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21 Years Young Annual Report 2004
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In only 21 years, JD has grown from
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PROFILE JD Group, a mass consumer f
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Corporate objectives and opportunit
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Abra Barnetts Bradlows Electric Exp
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By 1986 trains can travel faster th
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Executive management Arie Neven (45
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Group value added statement 13 2004
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■ Revenue up by 52% to R9,1 billi
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“Wars are won in the planning roo
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possible for me to mention by name
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1990 1992 1994 The first McDonalds
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Social citizenship “. . . and our
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one million account holders. Based
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1996 1998 2000 Penny Heyns scoops 3
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Abra - practical solutions for your
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Bradlows - you’re the difference
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Hi-Fi Corporation - the lowest pric
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Morkels - your two year guarantee s
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Russells - your home lifestyle part
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Score is absorbed into a reposition
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Ensuring that Group credit manageme
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Managing the procurement, maintenan
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Comprises a direct audit services d
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Group marketing is tasked to consta
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Responsible for the Group’s prope
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Influencing and shaping the Group
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A dream made real through the dedic
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Maxx New Media Concept and design G
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A brighter future to come Annual Fi
Page 61 and 62: “the way you behave when you are
Page 63 and 64: JD Group Limited board and manageme
Page 65 and 66: The purpose of this committee is to
Page 67 and 68: Employment benefits funds Approxima
Page 69 and 70: Fraud and illegal acts JD Group doe
Page 71 and 72: 14 months 12 months 31 August 31 Au
Page 73 and 74: 14 months 12 months 31 August 31 Au
Page 75 and 76: To the members of JD Group Limited
Page 77 and 78: Subsidiary companies Details of the
Page 79 and 80: Retirement Medical Cash Share schem
Page 81 and 82: Options Sale/ Sale/ exercised Date
Page 83 and 84: Options Sale/ Sale/ exercised Date
Page 85 and 86: Basis of accounting The annual fina
Page 87 and 88: are allocated using the effective i
Page 89 and 90: unrecognised actuarial gains and lo
Page 91 and 92: 31 Group balance sheet Restated 200
Page 93 and 94: 33 Notes to the Group cash flow sta
Page 95 and 96: 35 Notes to the Group annual financ
Page 97 and 98: 37 2004 2003 Rm Rm 4. Finance costs
Page 99 and 100: 39 2004 2003 7. Earnings per share
Page 101 and 102: Vehicles and Computer Office equipm
Page 103 and 104: Vehicles and Computer Office equipm
Page 105 and 106: 45 2004 2003 Rm Rm 12. Investments
Page 107 and 108: 47 2004 2003 Rm Rm 15. Share capita
Page 109 and 110: 18. Interest bearing liabilities co
Page 111: 22. Financial risk management conti
Page 115 and 116: 55 Segmental analysis - geographica
Page 117 and 118: Electric Express Morkels Barnetts S
Page 119 and 120: Corporate Group 2004 2003 2004 2003
Page 121 and 122: Salient features of The JD Group Em
Page 123 and 124: 63 JD Group Limited - company finan
Page 125 and 126: Issued share capital Shares Direct
Page 127 and 128: 67 Notice to shareholders Notice is
Page 129 and 130: Material changes Other than the fac
Page 131 and 132: JD Group Limited (Registration numb
Page 133 and 134: Shareholders’ diary Financial yea
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Annual Report - JD Group

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