Amarula Limited (Amarula) is a company listed on the Johannesburg Securities Exchange (JSE) and has a 30 September financial year end. Amarula offers glass packaging solutions for the soft and alcoholic beverage industries in South Africa. In order to invest excess funds, Amarula acquired 10000010% bonds of Black Label Limited on 1 October 2017. The bonds have a face value of R50 each and interest on the bonds (based on face value) is payable annually on 30 September. Transaction costs amounting to R12 000 were incurred by Amarula on the acquisition of the bonds. Similar bonds were trading at a rate of R12% per annum on 1 October 2017. The bonds of Black Label Limited were trading at a fair value of R48.50 each, on 30 September 2018. Amarula holds the bonds for strategic investment purposes and not for trading