Notes to the annual financial statements

FOR THE YEAR ENDED 31 MARCH 2010

36.	Guarantees and contingent liabilities
	36.1	Guarantees

			2010 R million	2009 R million
		Guarantee to associated company*	–	386
		Guarantees by subsidiary companies**	144	1
			144	387

	36.2	Contingent liabilities
		SARS dispute – STC***	214	–
		Contract grower guarantees****	31	48
			245	48

	*	Unilever Plc and Unilever NV, hereafter Unint, and Robertsons Holdings (Pty) Limited (Robertsons), a wholly owned subsidiary company of Remgro, issued a guarantee to the holders of commercial paper issued by Unilever SA (Pty) Limited (Unilever SA). The companies are jointly and severally liable in the event of non-performance by Unilever SA. In terms of its commercial paper programme, Unilever SA may issue commercial paper to the value of R2.5 billion. On 31 March 2010, commercial paper amounting to RNil (2009: R1.5 billion) was issued by Unilever SA. Unint issued a cross-guarantee that limits Robertson’s liability to 25.75% of the paper in issue. If Unilever SA issues commercial paper to the full extent of the programme, Robertson’s maximum exposure in terms of this arrangement amounts to R643.75 million.
	**	Various guarantees given to financial institutions on behalf of associated companies.
	***	Legal dispute relating to VenFin Limited (VenFin) regarding a possible STC liability involving shares held in treasury by a subsidiary that was subsequently sold to VenFin and cancelled.
	****	Certain subsidiary companies have contingencies relating to certain contract grower arrangements. It is not anticipated that any material liabilities will arise from these contingencies.

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