Download Annual Report 2006 - Foskor

INCOME NOTES TO STATEMENTTHE FINANCIAL STATEMENTSfor the year ended 31 March 2006COMPANYGROUP12 months 9 months 12 months 9 monthsended ended ended endedMarch March March MarchR’000 2006 2005 2006 200515 NON-INTEREST-BEARING BORROWINGSNon-interest bearing borrowings are carriedat cost.BHP Billiton South Africa Ltd 12,800 12,800 12,800 12,800The loan is unsecured and interest-free withno repayment terms.12,800 12,800 12,800 12,80016 FINANCE LEASE LIABILITYFinance lease liability – minimum lease paymentsNot later than one year 8,590 8,827 8,590 8,827Later than one year and not later than five years 30,839 32,593 30,839 32,593Later than five years 49,717 56,553 49,717 56,55389,146 97,973 89,146 97,973Future finance charges on finance lease (52,156) (57,965) (52,156) (57,965)Present value of finance lease liability 36,990 40,008 36,990 40,008Less current portion 2,823 3,019 2,823 3,019Long-term portion of finance lease liability 34,167 36,989 34,167 36,989Present value of finance lease liabilityis as follows:Not later than one year 2,823 3,019 2,823 3,019Later than one year and not later than five years 12,075 12,088 12,075 12,088Later than five years 22,092 24,901 22,092 24,90136,990 40,008 36,990 40,008The finance lease is between Foskor (Pty) Ltdand Mhlathuze Water Board.The lease liability is effectively secured as therights to the leased asset revert back to thelessor in the event of default.42