Notes to the company financial statements for the year ended 31 March 2006             2006  Rm  2005  Rm  6. Financial assets     Financial assets classified as loans and receivables   1 255  1 655       Loan to employee investment company   34  —       Group company loan with AFSA (note 6.1) 1 221  1 655    Financial assets classified as “held-to-maturity”            Investment in redeemable C shares (note 6.2) 813  813        2 068  2 468    6.1 Group company loan with AFSA In 2003, Alexander Forbes Limited sold its shareholding in its South African group to Alexander Forbes South Africa Holdings (Pty) Limited (“AFSA”) to facilitate the black economic empowerment shareholding transaction. This transaction gave rise to a group company loan between Alexander Forbes Limited and AFSA of R1 897 million. R434 million (2005: R242 million) was repaid by AFSA to Alexander Forbes Limited in the current year.                   The movement in the group company loan with AFSA arising from this transaction is set out below.         Opening balance 1 655  1 897      Repaid during the year (434) (242)     Closing balance 1 221  1 655    6.2 Investment in redeemable C shares         Resulting from the sale transaction referred to above, Alexander Forbes Limited obtained 813 redeemable C ordinary shares in AFSA bearing an after tax dividend yield of 18% per annum. No shares have been redeemed to date.           back | next   |