Notes to the consolidated annual financial statements

for the year ended 30 September

		2008	2007	2006
		Rm	Rm	Rm
6.	Finance lease receivables
	Amounts receivable under finance leases:
	Gross investment	711	912	916
	Less: Unearned finance income	(114)	(143)	(128)
	Present value of minimum lease payments receivable	597	769	788
	Receivable as follows:
	Present value
	Within one year (note 10)	161	150	222
	Non-current portion	436	619	566
	In the second to fifth year inclusive	419	563	493
	After five years	17	56	73

		597	769	788
	Per business segment (non-current portion):
	Continuing operations
	– Equipment			1
	– Automotive	85	66	62
	– Handling	339	544	494
	– Corporate and other	12	8	8
	Total continuing operations	436	618	565
	Discontinued operations
	– Coatings		1	1
	Total discontinued operations	0	1	1
	Total group	436	619	566
	Minimum lease payments
	Within one year	223	204	253
	In the second to fifth year inclusive	322	644	564
	After five years	166	64	99
		711	912	916
	Less: Unearned finance income	(114)	(143)	(128)
		597	769	788
	Fair value of finance lease receivables	597	769	788
	Allowance for uncollectible finance lease receivables
	At 1 October	45	18	19
	Additional allowance charged to profit or loss		31	3
	Allowance reversed to profit or loss	(11)	(1)	(7)
	Translation	3	(3)	3
	At 30 September	37	45	18
	Unguaranteed residual values of assets leased under finance leases	225	241	223
	The interest rate charged in the United Kingdom and United States on the leases is fixed at inception for the duration of the lease term which is typically between four and five years. The weighted average interest rate on lease receivables for the year 30 September 2008 was 9.0% per annum (2007: 7.7%; 2006: 9.1%). Certain of the prior year receivables in the United Kingdom and United States were subject to a securitisation arrangement – refer to note 15 for details. Finance lease receivables in prior years were secured by the assets (refer note 15).

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