Page 138 - DUT Annual Report 2020

585 64 816
136
1 662 72 650
8 857
8 295
DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
DURBAN UNIVERSITY OF TECHNOLOGY
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
8. BORRO WINGS Non-current borrowings
State Guaranteed Loans Development Bank of Southern Africa
Current portion of borrowings
Current portion of interest-bearing borrowings
Total borrowings Name of entity
State Guaranteed Loans
Development Bank of Southern Africa - Loan 1 Development Bank of Southern Africa - Loan 2 Development Bank of Southern Africa - Loan 3
2020 2019 R’000 R’000
65 401
8 857
74 258
Fixed interest rate%
9.8 - 13.45 5.0 8.7 10.14
74 312
8 295
82 607
1 July 2022 31 March 2023 31 March 2023 31 December 2029
State Guaranteed and Development Bank of Southern Africa loans
The State Guaranteed Loans and the Development Bank of Southern Africa loans are unsecured. The State Guaranteed Loans, the subsidies of which range between 50% and 85% reflect the balance owing on loans raised to finance the acquisition of property, plant and equipment. The annual cost of interest and redemption, together with the state subsidy on these payments, are included in surplus for the year in the consolidated income statement of and other comprehensive income.
Borrowings are held to maturity at amortised cost.
9. RETIREMENT BENEFIT OBLIGATIONS
Statement of financial position obligations for: - Pension benefits
- Post employment medical benefits
9..1 Pension obligations - National Tertiary Retirement Fund (“NTRF”)
2020 R’000 518 139 188
139 706
2019 R’000 14 471 143 033
157 504
Maturity
Employees are entitled to defined contribution pension benefits under the NTRF. Members who transferred from a government fund to the NTRF in 1994 are entitled to a defined benefit minimum guarantee upon retirement at a normal retirement age of 60. DUT has a contract with the NTRF under which it has an obligation to cover the deficit between accumulated defined contribution funds and the costs of the defined benefit underpin at retirement (payable to NTRF). The liability that is valued represents the net present value of future shortfall amounts that the Durban University of Technology needs to cover. This is a closed scheme with 123 active members. The entire defined benefit obligation relates to active members and is essentially a contribution-based plan with a guarantee that takes into account final salaries.