Notes to the Company financial statements

for the year ended 30 June

    R million   2014   2013  
  15.   RELATED PARTY      
    The following transactions were carried out with related parties:      
  (i)  Intercompany receivable      
    Sun International Limited has issued a guarantee in favour of Nedbank Limited in respect of facilities entered into with Emfuleni Resorts (Pty) Ltd up to a maximum of R700 million. A liability was raised in the prior year (refer to note 11). A corresponding intercompany receivable was raised with Emfuleni (Pty) Ltd and interest was charged at 8.9% per annum on this balance. The movement on the intercompany balance for the year is as follows:      
   
Balance at beginning of the year  

29  

42  
    Interest income accrued for the year under review   2   2  
    Fair value adjustment   3   (5) 
    Repayments during the year   (9)  (10) 
    Balance at end of the year   25   29  
  (ii)  Loans to related parties      
    Loan to Dinokana:      
    Balance at beginning of the year   1   –  
    Loans advanced during the year   –   1  
    Balance at end of the year   1   1  
    The loan is interest free and has no fixed repayment terms.      
   
Loan to Ocean Sun Casino:  
   
    Loans advanced during the year   766   –  
    Balance at end of the year   766   –  
    The loan is interest free and has no fixed repayment terms.      
   
Loan to Kalahari Sands:  
   
    Balance at beginning of the year   13   20  
    Loans advanced during the year   5   –  
    Interest for the year   1   1  
    Repayments made during the year   (17)  (8) 
    Balance at end of the year   2   13  
    The loan bears interest at prime less 1% and has no fixed repayment terms.      
   
Loan to SFIR:  
   
    Balance at beginning of the year   49   105  
    Capitalised to investment in subsidiary   (56)  (46) 
    Interest for the year   –   8  
    Revaluation of loan   –   6  
    Reversal of withholding taxes   7   –  
    Repayments made during the year   –   (24) 
    Balance at end of the year   –   49  
   
Loan to Sun International Investments No 2:  
   
    Balance at beginning of the year   1 115   1 115  
    Sale of treasury shares   (39)  –  
    Balance at end of the year   1 076   1 115  
    The loan is interest free and has no fixed repayment terms.      
   
Loan to SI Lesotho:  
   
    Balance at beginning of the year   12   21  
    Interest for the year   1   1  
    Repayments made during the year   –   (10) 
    Balance at end of the year   13   12  
    The loan bears interest at prime less 1% and has no fixed repayment terms.      
   
Loan to Sun International Travel Proprietary Limited:  
   
    Balance at beginning of the year   5   5  
    Write off of loan   (5)  –  
    Balance at end of the year   –   5  
    The loan was written off at 30 June 2014 due to the sale of the Company’s investment in this subsidiary.      
   
Loan to Sunwest:  
   
    Balance at beginning of the year   265   270  
    Fair value adjustment   (10)  (5) 
    Balance at end of the year   255   265  
    The loan is interest free and is repayable in May 2022.      
   
Loan to TCN:  
   
    Balance at beginning of the year   172   137  
    Interest for the year   9   7  
    Revaluation of loan   11   28  
    Balance at end of the year   192   172  
    The loan bears interest at 5% and has no fixed repayment terms.      
  (iii)  Sale of subsidiary to related party  
    The Company sold its investment in Sun International Travel Proprietary Limited at 30 June 2014 to a company in which Ms ZBM Bassa, who serves as a non-executive director on the SIL Board, has an interest.