| |
| |
Group |
Company |
|
|
|
|
|
| |
31 March
2020
Rm |
31 March
2020
Rm |
| Net finance charges, hedging costs and fair value movements |
(1 527) |
(1 803) |
(1 747) |
(2 219) |
| Net finance charges |
(1 249) |
(1 570) |
(1 496) |
(1 989) |
| Finance charges on lease liabilities |
(445) |
(368) |
(560) |
(555) |
| Net finance charges on local debt* |
(835) |
(1 254) |
(967) |
(1 486) |
| Less: Finance charges capitalised** |
31 |
52 |
31 |
52 |
| Foreign exchange, fair value movements and costs of hedging |
(278) |
(233) |
(251) |
(230) |
| Foreign exchange gain/(loss) |
829 |
(549) |
870 |
(562) |
| Cost of hedging |
(153) |
(205) |
(153) |
(205) |
| Fair value adjustments |
(954) |
521 |
(968) |
537 |
| Capitalisation rate for borrowing costs (%) |
7.1 |
9.8 |
7.1 |
9.8 |
| * |
For interest-bearing debt movement, refer to note 26. |
| ** |
Finance charges on general borrowings are capitalised to qualifying assets (PPE and intangible assets). |
Finance charges relate to interest expense on financial liabilities measured at amortised cost.
Finance charges on local and foreign debt decreased from R1 570 million in March 2020 to R1 251 million in March 2021, mainly due to reduced interest rates as a result of the COVID-19 pandemic. Included in finance charges, as at 31 March 2021, is an amount of R29 million relating to interest on the SARS liability. |