ANNUAL REPORt 2015

Transcription

ANNUAL REPORt 2015

www.medine.com
MEDINE Limited ANNUAL REPORT 2015
Medine Limited
4 Clarens Fields Business Park, Black River Road, Bambous 90203
T (230) 401 6101
F (230) 452 9600
E [email protected]
ANNUAL REPORT 2015
Dear Shareholder,
The Board of Directors is pleased to present the Annual
Report of MEDINE LIMITED for the year ended 30 June
2015, contents of which are listed below.
This report was approved by the Board of Directors on
30 September 2015.
René Leclézio
Chairman
Daniel Giraud
Director and Chief Executive Officer
Chairman’s Statement
4-5
Chief Executive’s Review
6-7
contentS
Managing Director’s Report:
- Agriculture Cluster
12-15
- Leisure Cluster
18-19
- Property Cluster
22-23
Chief Finance Officer’s Review
24-25
Group Value Added Statement
26
Corporate Information
27
Board Profile
28-29
Senior Management Profile
30
Board of Directors
31
Directors of Subsidiary Companies
32
Corporate Social Responsibility Report
33-35
Corporate Governance Report
36-50
Statement of Directors’ Responsibilities
51
Statement of Compliance
52
Other Statutory Disclosures
53-54
Secretary’s Certificate
55
Independent Auditors’ Report
56
Statements of Financial Position
57
Statements of Profit or Loss and Other
Comprehensive Income
58
Statements of Changes in Equity
59-60
Statements of Cash Flows
61
Notes to the Financial Statements
62-124
Notice of Annual Meeting
125
Proxy Form
127
Our Vision
To be a unique lifestyle provider through
integrated sustainable development of property,
leisure, agro-business and services
Medine Limited and its Subsidiaries Annual Report 2015
Chairman’s Statement
4
Dear Shareholder,
Looking at the performance spreadsheet of the individual
divisions of Medine for the year under review, I get a sense
of déjà vu. Over the last 2–3 years, profits from Casela (and
related activities) and from the sales of land have covered
the losses from almost all the other operations. Should this
be of concern? No, and I will try to explain why.
The Raffray brothers, with some other partners, bought
Medine from a bank, the Credit Foncier, in 1911. Until
1968, at which time the Company was taken over by
Flacq United Estates (FUEL), the company consolidated its
land bank by buying up smaller sugar estates in the area.
This consolidation carried on under FUEL’s management
until the 1970’s, at which time the Company started its
diversification into tourism by building La Pirogue Hotel. In
2001, Medine was once again separated from FUEL. Given
the capricious nature of the price, not only of sugar, but also
of other agricultural commodities, the Board of Directors
took a strategic decision to diversify in an accelerated way
in order to minimise the double effect of adverse weather
conditions and adverse prices. Given that Medine had by
now become the largest landowner in the country, and
that the land was in a highly sought-after area, the natural
diversification strategy became property development.
As matters stand today, property development is at the core
of the Company’s strategy, and with the exception of Casela
and Medine Rum, which have lives of their own, all the other
activities of the Group are there to support the property
activity. Agriculture is still the largest operating division, the
Group’s biggest employer, and occupies the most land, but
its activities since the dramatic fall in the price of sugar can,
at this stage, only hope to break (cash-flow) even. Having
said that, let us not underestimate the importance of this
industry. Mauritius without its sugarcane fields would not
be Mauritius, and there is no way of becoming an island
state like Singapore with only 1.3 million inhabitants. The
main mission of the Agriculture cluster’s management is
to drive costs to a minimum, and develop value-added
products, which they are actively trying to do.
There are currently 1,500 arpents in Medine’s development
pipeline, of which 500 arpents are part of a smart-city
project, with education as its main theme. The projects
include a university, an extension to the primary school,
a secondary school, a pre-primary school, the third
phase of the business park, the second phase of student
accommodation, a sports complex, an arts centre, medical
facilities, Medine’s head office, and a number of land
parcelling projects. Even though the hotel business is not
our main focus, the Tamarina Beach Club and Golf act as
support for the ever-growing property portfolio. As these
are currently making losses, Management is reviewing
the strategy, with the favoured option being to more than
double the number of rooms in the hotel, which will greatly
lower the breakeven average room rate, but this implies
abandoning the boutique hotel status. This seems logical
with the popularisation of the district.
at billions of dollars in the US, but a company with prime
assets in Mauritius trades at a huge discount to its real value.
The problem being that Mauritian investors base value on
dividend yield, which, in Medine’s case, is low. Even though,
as the Hollies once sang, “the road is long”, directors have
nevertheless decided to increase the dividend over at least
the next 5 years. Unless disaster strikes, given Medine’s
reserves, this poses no foreseeable problem.
Casela’s complete makeover last year has begun to bear
its fruit. At the time of writing, management accounts for
the 2-month period to the end of August show admissions
going up by 64% and profits by 77% compared with last
year, which are higher than our wildest expectations. The
Casela World of Adventures is today the country’s leading
leisure destination, for both Mauritians and foreign visitors.
International sales of Medine’s 50% associate company, the
Indian Ocean Rum Company’s Pink Pigeon and Penny Blue
rums, are also making steady progress, although slower
than we would have wished. The latest offering, the Penny
Blue Single Cask, launched in Mauritius last month, has
been well received by the pundits, and will be launched
internationally by our partners Berry Bros & Rudd by the
end of the year.
I would like to thank my fellow directors, many of whom
have significant financial interests in Medine, for their
continued support during the year. I would also like to take
this opportunity to thank the CEO, Daniel Giraud, and his
team for the excellent work under pressure.
These are exciting times for Management, but not so
exciting for shareholders. At the time of writing, Medine is
capitalised at MUR 6.6 billion. The Group’s non-land assets
match its liabilities, which means that Medine’s net worth
is the 25,000 arpents of unencumbered undeveloped land,
equivalent to almost 6% of the island’s total area, in a fastgrowing region. Some companies with an ideal but no cash
flow and no hope of profits in the short term are capitalised
This year saw the departure of two directors, Alain de Ravel
and Chota Moollan. The former has been at the service of the
Company for 14 years, and the latter for 10 years. We will
sorely miss their good sense and sound advice. I wish them
both a peaceful retirement. I would also like to welcome
on board two new directors, Thomas de Spéville and Shakil
Moollan. I am certain that their youth and enthusiasm will
bring a new dimension to the Company.
Yours sincerely,
René Leclézio
Chairman
30 September 2015
5
Chief Executive’s Review
6
Dear Shareholder,
During the year under review, the Group turnover grew by
1.4% to reach some Rs 1.4 billion (land sales excluded) with
a loss of Rs 86 million compared with Rs 110 million last year,
despite the negative consequences of low sugar price, the
price discounting policy on the hotel industry, and the delay
in the realisation of the land-parcelling projects.
This loss result takes into account a charge of fair value of Rs 33
million, the VRS amortisation of Rs 46 million (applicable up to
2017), the cost of some Rs 25 million for the implementation
of the Education Hub, which will attract some 5,000 students
by 2025, and does not account for the profit on sale of land
of Rs 29 million, accounted as transfer in the reserves. The
Property cluster and Casela World of Adventures remained
the main cash earners and providers ahead of the other
clusters. With respect to the underperforming companies, we
have taken drastic measures to restructure financially and
operationally and we are already starting to see encouraging
signs of recovery. We are confident that their results will
improve within the next two years.
For the Agriculture cluster, the low price of sugar has
impacted heavily this year’s result while the restructuring
of diversification and cost-cutting processes have been
successful with a turnaround of some Rs 43 million.
Sugarcane yield remained favourable with a crop of 91
tonnes/hectare and an extraction rate of 10.68%. As for
the replanting programme, this is an ongoing process with
the purpose to compensate for the land area used for our
property development.
The milling operations performed satisfactorily with an
additional crush of some 25,000 tonnes from Alteo in the
year under review. For crop 2015, the delay in the completion
of works for the refurbishment and reconditioning of the
turbine and the setting up of the new electricity plant has
resulted in the cane harvest starting much later than planned
and in consequence some 40,000 tonnes of cane have been
sent to other millers and the cane harvest period will be
extended till the end of December. This will undoubtedly
affect the results for 2015/16 for both the growing and
milling operations.
After the challenging time brought by the coupling and finetuning of all equipment, we are pleased to confirm that we
are ready to supply electricity to the CEB national grid as per
the terms of the Power Purchase Agreement signed last year
with the CEB and we await the final clearance of the relevant
authorities. I take this opportunity to thank all our team,
Mauritian and foreign professionals, as well as the Omnicane
team for their unprecedented dedication and involvement in
the realisation of this endeavour.
In the meantime, the Mauritius Sugar Syndicate (MSS)
have challenged our agreement with Omnicane for the
refining of our plantation white sugar. Medine Sugar Milling
Ltd has always followed the National Sugar Strategy even
though we are claiming the right to sell our own sugar. The
proposed scheme of payment by the MSS for the plantation
white sugar, if applied, will without a doubt jeopardise our
milling operations. We are following this issue closely and
will do our best to find a fair solution.
On the bright side, we successfully launched the Casela
World of Adventures in December 2014 further to an
investment to the tune of Rs 425 million on a land area of
625 arpents that have been allocated to the project. The
response from the visitors, both local and international were
beyond our expectations with a total number of entries
reaching 420,000 for the twelve months to June 2015.
The prerequisite for maintaining growth needs recurrent
investments to keep innovation in line with the demand for
new experiences.
Tamarina Beach Hotel has obtained a good rate of occupancy
but suffered far too much from the discounted price policy,
which goes against the strategy for a boutique hotel. The
project of increasing the hotel capacity by 30 rooms has
been suspended as we are rethinking our strategy according
to added value which can be found within the Medine
domain. Tamarina Golf Club performed slightly better,
and considerable progress has been made on the greens,
fairways, and landscaping. This is primordial to maintain its
reputation as one of the leading golf courses in Mauritius.
The Property cluster generated a profit of Rs 130 million
with realised property sale and have built a stock of readily
saleable land and will be kept in reserve for the coming
years to sustain our development. We pursued our strategy
to consolidate our build-and-lease portfolio which have so
far required some Rs 1.5 billion investment and this will
provide recurrent revenue in the long term.
Our main focus in the immediate future is the development
of the Medine Smart City and the Wolmar Coastal Village that
will span over 500 acres and 300 acres respectively. Falling
under the Medine Smart City’s umbrella, the Education
Hub required some Rs 25 million for its market research
and implementation costs. Several agreements have
been signed with internationally renowned universities
and further investments will be required together with
scholarship programmes that will help to boost the initial
phase of this crucial development, this being the driving
force of Medine Smart City.
The branded rums, namely Penny Blue and Pink Pigeon,
were well acclaimed and received several awards on the
international scene and shall be broadened by a new range
in the near future.
On the corporate side, Fondation Medine Horizons continued
its CSR objectives by funding education, poverty alleviation
and socio-economic development, sports and leisure,
health, environment, and heritage.
Medine is an asset land base company and its strategy is
to optimise its land resources and unlock its value through
an integrated and sustainable development. This strategy
is paying off as its saleable land value has increased
significantly since the start of the implementation of our
Master Plan in 2005. The property and asset investment
decision will increase the indebtedness of the Group in
the short term, but will also create assets that will sustain
recurrent revenue in the medium and long term.
Acknowledgements
I take this opportunity to thank Alain Paillusseau for his
contribution as Managing Director of the Leisure cluster
during the past three years and to welcome Raoul Maurel as
Managing Director of Tamarina Operations and Paul Williams
as Managing Director of Casela World of Adventures.
I express my sincere appreciation to our Chairman René
Leclézio and Vice-Chairman Jacques Li Wan Po, our Board
members for their valuable advice, as well as our excellent
executive team and employees for their sense of efficiency
and dedication.
Yours faithfully,
Daniel Giraud
Chief Executive Officer
30 September 2015
7
Long Service Awards
2015
8
During the Long Service Awards night which took place in Pierrefonds on 26 May 2015,
Medine celebrated its employees’ Engagement and Recognition. 172 colleagues were
awarded shields and certificates in recognition for their 25 and 35 years of employment.
9
10
11
12
Managing Director’s Report
Agriculture Cluster
Cane Cultivation
Milling Operations
The 2014 crop yielded a total sugar production of 45,235
tonnes compared with 42,839 tonnes the previous year.
For crop season 2014, Medine Sugar Milling produced
44,563 tonnes of plantation white sugar (PWS) from a total
of 421,395 tonnes of cane received.
A total of 3,374 hectares of land was harvested, with a yield
of 91.0 tonnes per hectare, compared with 3,392 hectares
and a yield of 89.7 tonnes for crop 2013.
During the year under review, the estate and its planters
harvested 307,316 and 90,971 tonnes of cane respectively
and received 25,528 tonnes from Alteo, totalling to 423,815
tonnes, compared with 304,130 and 90,768 tonnes
respectively, totalling 394,898 tonnes, for crop 2013.
Cane delivery to Medine mill amounted to 421,461 tonnes
while 2,354 tonnes of estate canes were sent to other mills
due to fire before crop at Medine Sugar Milling.
The overall extraction rate for crop 2014 was 10.68%
compared with 10.90% for crop 2013.
The crop started on 2nd July 2014 and ended on 24th
November 2014. Medine was the best performer among
the four milling plants with an extraction rate of 10.58%
(2014: 10.82%). For the first time, and this in spite of the
modernization and size of the other mills, Medine ranked
second with a Reduced Overall Recovery (ROR) standing at
85.9, which was above the island average of 85.6.
The Power Purchase Agreement (PPA) with the CEB was
signed in September 2014, and with the objective to export
electrical energy to the grid for crop 2015, the dismantling
of the boiler and turbo generator at Union Saint Aubin and
the relocation at Medine had to start immediately. For this
reason, we took the decision to terminate the production
earlier than scheduled and did not accept more cane from
other factory area so as not to jeopardize the energy project.
Overall, crop 2014 was a good one for the milling activity
with no injury to the personnel as well as no serious
breakdown.
Food Crops
Landscaping and Nursery
During the year under review, the production of vegetables
and fruits was 3,270 tonnes compared with 4,260 tonnes
for year 2013/14. The new strategy adopted for food-crop
production was to reduce the production of vegetables and
focus on producing better quality vegetables at a higher
price. The total surface area harvested was thus decreased
from 220 hectares in 2013/14 to 153 hectares in 2014/15.
The main objective of improving the food crop productivity
at the field level was attained and this strategy helped to
reduce its operating loss to a breakeven result for the year
under review.
The departments have been restructured since March 2014
with the objective of focussing primarily on the internal
projects of the Property, Leisure and Agriculture clusters.
The landscaping department recorded a 9% turnover
growth mainly due to higher internal sales and realised a
profit of Rs 0.5 million in the year under review compared
with a loss of Rs 6.8 million in the preceding year. The
sales mix between creation and maintenance contracts is
roughly 50:50 and is forecasted to keep the same ratio for
the current year.
For the financial year 2015/16, Medine targets to increase
its sales through its brand Jardins de Medine (JdM) with
more value-added products and to further improve the
productivity at field level.
The situation has however been more challenging for the
nursery and garden centre for the year under review, as sales
have been lower than expected. Revenues were affected
on the retail side by an increasing number of competitors
in the region, and on the wholesale side, by lesser sales
to external landscapers due to the limited number of new
projects in the western region. Within the department, 60%
of the revenues come from the Medine Garden Centre and
the remaining 40% from the sales to Medine Landscaping
and to other landscapers. Losses have significantly been
reduced during the period under review and are expected
to remain at the same level for the current year.
Vincent Labat
Managing Director, Agriculture cluster
13
Yield
95.2
Agriculture Cluster
14
91.1
89.7
88.8
83.6
40.2
2010
38.4
37.8
37.5
35.3
2011
2012
Tonne per arpent
2013
2014
Tonne per hectare
Sugar produced
10.85
9.80
9.72
9.74
9.16
4.58
4.14
4.10
4.11
3.87
2010
2011
2012
Tonne per arpent
2013
2014
Tonne per hectare
Yield (‘000 tonnes) - Cane harvested
307.3
304.1
304.1
286.4
277.3
104.0
116.5
97.7
82.8
2010
2011
Planters
90.8
2012
2013
Company
2014
Yield (‘000 tonnes) - Sugar produced
27.3
26.2
24.6
9.1
25.6
23.7
10.3
8.0
2010
8.9
2011
8.5
6.9
7.7
2012
Cultivation department
9.7
9.0
2014
2013
Planters
Miller
Area harvested mechanically (hectare)
3,203
2010
3,226
2011
3,383
3,365
2013
2014
3,308
2012
Hectare
Sugar extraction (%)
11.40
10.82
2010
2011
10.87
10.90
10.68
2012
Percentage
2013
2014
10.0
15
16
17
18
Leisure Cluster
The financial year 2014/15 has been a busy one for the
Leisure Cluster, namely with the transformation of Casela
Nature & Leisure into a full-fledged recreational park now
known as Casela World of Adventures. Construction works
lasted 12 months and MUR 425 million were invested in
the project.
Turnover for the Leisure cluster increased by 14% and is
greatly attributed to the performance of Casela World of
Adventures. As for the golf course, the focus remains on the
increase in visibility and value creation in order to attract
more visitors, and increase the number of competitions and
corporate events.
Hotel activities suffered from the severe competitive
environment and resolved to heavy price discounting to
maintain occupancy rate.
Casela World of Adventures
Casela World of Adventures is now regarded as a prime
attraction on the island and pulled in over 420,000 visitors
over the past year, which represents a progression of 41%
over last year. The response from Mauritians was very
positive and helped to shift the mix of residents/tourists
from 47/53% to 61/39% for the year under review and
translates in the fact that more than 20% of the Mauritian
population has visited Casela during this year.
The introduction of some new activities such as the
toboggan slides and 4D cinema, together with completely
new offers like giraffe feeding and the showcase of new
game animals from South Africa during the year were
successful crowd pullers.
China positions itself third in terms of visitors welcomed
for the year under review, right after Mauritian and French
visitors.
Tamarina Boutique Hotel (TBH)
TBH achieved an occupancy rate of 73%, which is higher
than the overall average occupancy rate of 66% achieved
by Mauritian hotels, but did not achieved its revenue
objectives because of a lower average room rate. TBH has
since reviewed its strategy, in line with its positioning as a
boutique hotel and better results are expected.
The proposed project for extension with additional rooms
for 2016, a stringent cost ratio analysis as well as cohesive
sales campaigns will certainly mitigate risks for lower
average room rate for the year 2015/16 ahead.
Tamarina Golf Club Limited (TGC)
The quality of the golf course has been upgraded and this
has resulted in making Tamarina Golf one of the leading golf
courses in Mauritius. TGC has attracted more competitions
and corporate events this year.
GOP improved with strong cost-control measures and this
has contributed to a reduction of the loss of TGC by MUR 2
million from last year.
The Golf Academy activity has been outsourced and the Golf
Club Restaurant ‘Le Dix Neuf’ is now managed by TBH.
The specialist eyes of our greenkeeping consultant, the new
Mauritian greenkeeper and the golf course architect Rodney
Wright, have all helped in maintaining the golf course to
the highest standards and this is essential to the long-term
success of the brand.
TGE Management Services Ltd (TGEMS)
TGEMS has continued its positive trend started some years
back and ended the year with a profit of MUR 300,000.
The improved results have been achieved through villa
re-sales on the estate, with the close collaboration of
Medine Property. Maintenance works carried for TBH and
TGC provided a satisfactory in-house solution, which will be
extended to Casela World of Adventures next year.
Management is looking at expanding the Syndic
Management services beyond its present client portfolio.
Priorities for 2015/16
With its current strategy and positioning as a boutique
hotel, the main focus of TBH will be to enhance customer
experience while maximising average room rate. The
challenge for the year ahead lies within the feasibility on
an extension to the existing hotel.
TGC is working on developing mutually beneficial
agreements with resort hotels within the region. The future
road linking Tamarina to Wolmar/Flic en Flac definitely
represents an added opportunity for our ease of doing
business.
Medine Leisure has developed into a strong umbrella brand
for unique activities in the west. The Medine concept of
Live-Work-Play-Learn only gets better with what we have
in store for our audience!
The successful streamline of the cluster’s personnel will
allow for continued performance in 2015/16.
The main objective for Casela World of Adventures is to
keep the exceptional trend set in 2014/15. For this, the
park shall need to regularly update and innovate through
the introduction of new leisure activities.
Alain Paillusseau
Managing Director, Leisure cluster
19
20
21
22
Property Cluster
During the year under review, our team consolidated the
pipeline of projects for Medine Property and we obtained
a number of land conversion rights, which we expect
to translate into property development projects and,
consequently, realised profits in the coming years.
The results for the financial year were below expectations
due mainly to two bulk sales that did not materialize. We
now have a stock of sellable land that we have built up
over the last five years and these will be used in coming
financial years, should unforeseeable circumstances prevent
us from achieving our objectives. The delay between the
concept and the release of revenues in profit and loss being
relatively long, we expect to continue consolidating this
stock every year, which will be used in years where permits
are not obtained as planned or where technical reasons
hinder the completion of annual budget objectives.
In 2014/15 we launched the Mount Pleasant morcellement
project in Roches Brunes over 18 hectares with 294 plots
of which over 80% are already reserved through options.
The profit on this project is expected to be accounted as
realisations for coming years 2016/17 and 2017/18.
Green Creek Estate (332 plots over 33 hectares) is being
completed and the morcellement permit is expected for
February 2016, which will lead to the signature of the
deeds of sale, and consequently the release of part of the
profit accounted as realised in 2015/16.
We extended the office park at Clarens Fields during the
financial year with an additional 2,000 m2 of buildings
which will be fully leased by December 2015. By this date,
the full 6,000 m2 of the first phase of this project will be
occupied. Our team is finalizing the feasibility study for an
additional phase of 5,500 m2 which we expect to launch in
2016.
Cascavelle Shopping Mall Ltd traded satisfactorily in the year
under review and nearly achieved its breakeven point with
a 90% occupancy rate. We expect full occupancy in 2016.
In 2014/15, we also extended by 1,500 m2 the classroom
facilities of Pierrefonds which are currently used by our
partner universities and which will host the courses of
two prestigious French universities in 2015/2016, namely,
Panthéon-Assas for Law and École Centrale de Nantes for
Engineering.
Medine Property will now concentrate its efforts on the
development of two major projects which will transform
the western landscape during the next decade, and which
has already contributed and will continue to create value
for the shareholders by generating profit from sales of land,
as well as developing the investment property portfolio of
Medine, which we expect will contribute in the medium
term to a substantial share of the cluster’s profit.
These two projects are the Medine Smart City and the
Wolmar Coastal Village.
Medine Smart City
During the budget speech in February 2015, the Minister of
Finance announced the creation of the Smart Cities Scheme
that would be the legal framework to develop smart cities
in Mauritius.
Although Medine had been working on the implementation
of its Master Plan over the last decade with the final
objective being the development of a new city, this new
framework will act as a catalyst for the implementation
of our plan with an innovation component which now
becomes a major incentive for this town in the making.
Indeed, the scheme is expected to allow promoters to offer
smart solutions for energy, water and waste collection
while offering sufficient incentives to innovate and create a
new urban lifestyle in Mauritius. The traditional LIVE – WORK
– PLAY motto of a smart city is enhanced in our case by
a major component which will differentiate Medine from
other projects: the ‘LEARN’ dimension with the creation of
the first integrated campus in Mauritius.
The overall smart city project stands over 250 hectares and
will be made of the following components:
• Commercial facilities
• Business parks
• Medical hub
• Sports hub
• Education (pre-primary, primary, secondary, and
tertiary)
• Transport facilities
• Student housing
• Residential facilities (morcellements, retirement
•
•
•
•
village, villas, apartments, town houses, and affordable
housing)
Cultural and leisure facilities
Green park
Cycling and pedestrian tracks including green connectors
Mixed-use facilities
A number of these facilities are already available on site
including Cascavelle Shopping Village, Clarens Fields
Business Park, West Coast International Primary School, and
student housing facilities.
During 2016, we expect to launch the construction of the
Art Station which will promote art and culture, and the
Sports Centre where an Olympic pool, inter alia, will be built
to promote sports in the western region.
Medine Education
The Education component will lead the development of our
smart city. Medine has invested in education over the last
3 years and is now starting to reap the first fruits of this
project.
Our feeder campus of Pierrefonds now hosts over 450
students on a permanent basis from VATEL, SUPINFO,
ESCP and ESSEC (the latters being Executive Education
programmes). We expect to welcome some 100 additional
students in 2016 with the launching of Panthéon-Assas’s
LLM and LLB, and the Bachelor of Engineering of École
Centrale de Nantes. The accreditation request for a Bachelor
in Architecture from the École Nationale Supérieure
d’Architecture from Nantes is presently being considered by
the Tertiary Education Commission (TEC) and these courses
may also start in September 2016. The Global BBA of ESSEC
accreditation file is currently being finalized and will soon
be sent to the TEC for accreditation.
MoUs and MoAs have also been signed with Université
de Paris Descartes (School of Medicine, Midwifery
School, Nursing Institute, and Pharmaceutical Sciences),
Ferrandi (School of Culinary Arts), and l’Institut Supérieur
d’Interprètes et de Traduction (ISIT) for translation and
Sino-African Intercultural Business Development, which we
expect to provide new courses by 2017 and 2018.
These top-level institutions form part of the International
Campus for Sustainable and Innovative Africa (ICSIA) which
will be the premium brand on our campus. ICSIA intends to
achieve the following goals: professionalization, excellence,
interdisciplinary, bilingualism, service, innovation, and
sustainability. Our ten-year objective is to bring 5,000
students on our campus, thus creating a vibrant and unique
campus in sub-Saharan Africa, whilst positioning Mauritius
as the education hub for Africa.
We are confident that the education project will contribute
substantially to the development of our smart city with the
creation of a new community in a short time span, thus
enhancing considerably the overall land value of Medine.
Wolmar Coastal Village
The Team is also presently working on the master planning
of the first integrated coastal village in Mauritius which is
located over 135 hectares of land between Tamarin Bay
and the hotels of Flic-en-Flac. This unique piece of land will
host a coastal village with residential, hotel, commercial,
leisure and sports facilities, giving access to the coast to
both Mauritians and tourists.
The heart of the project will be a ‘Place du Village’ with
spectacular views on Tamarin Bay, La Tourelle de Tamarin
and Le Morne, and will offer access and various facilities in
a safe, friendly and comfortable environment for families.
This village will be the first of its kind in Mauritius and will
constitute a major step towards the democratization of our
island’s coastal strip.
Careful planning and consideration are crucial for the
success of the project and we have conducted and subcontracted market surveys and studies to understand the
needs and aspirations of our clientele for such a village.
Initial phases will start in 2016 and we expect the project to
be completed by 2018/19.
Thierry Sauzier
Managing Director, Property cluster
23
24
Chief Finance Officer’s Review
Group’s Financial Results
Financial Performance Review
Leisure Cluster
I set out below the financial performance review at cluster and
Group level.
The Leisure cluster’s revenues grew by 14% to reach Rs 486
million (2014: Rs 427 million) with Casela World of Adventures
as the main contributor to the growth further to the completion
of the new operational set-up and its launch in December
2014. Its revenues reached Rs 267 million, representing a
38% increase compared with the preceding year. These results
are most encouraging and reflect the successful launch and
overwhelming positive response from the clients coming from
both local and tourist market segments.
Agriculture Cluster
The Agriculture cluster’s turnover for the year under review
amounted to Rs 733 million, 8% lower than the Rs 795 million
realised in the preceding year. Revenue from the sugar related
activities fell by Rs 38 million to Rs 627 million, mainly on
account of the drop in sugar prices to Rs 12,694 per tonne this
year (2014: Rs 15,830 per tonne). Based on the production
tonnage for crop 2014, the shortfall in revenue for the growing
and milling operations amounted to Rs 112 million. This was
fortunately mitigated by the one-off compensation of Rs 71
million paid by the Sugar Industry Fund Board (SIFB), calculated
on the basis of Rs 2,000 per tonne of sugar produced.
This is the second consecutive year of drop in sugar prices,
falling from Rs 17,573 for crop 2012 to Rs 12,694 for crop 2014,
which represents a shortfall in revenue of Rs 174 million based
on crop 2014’s tonnage produced. The SIFB compensation has
indeed provided a real breather for the year under review.
Another factor that weighted on the revenue realised during
the year under review was the reduction in the diversification
activities further to the restructuring exercise to right-size
the food crop, landscaping and nursery activities. Revenues
at Rs 101 million were Rs 16 million lower than in the
preceding year.
The cluster’s results showed a lower loss of Rs 91 million (2014:
loss of Rs 132 million) and took on board a lower fair value
charge of Rs 33 million (2014: Rs 66 million). The improvement
in the bottom-line results also came from the reduction in
the losses of the diversification activities from Rs 43 million
loss in the preceding year to a break-even result thanks to the
restructuring exercise combined with favourable production
and market conditions for the food crop this year.
Prospects – The worldwide sugar prices are expected to
remain depressed until the year 2017 in midst of structural
adjustment at global market level. Should the sugar prices
for the forthcoming year (crop 2015) be maintained at the
same level as for crop 2014, there is an expectation that the
SIFB would pay a compensation once more so as to maintain
the total proceeds per tonne at more or less the same level.
This is however subject to government authorities’ approval.
The SIFB compensation will therefore be crucial to avoid any
deterioration of the bottom-line results. With the sugar prices
maintained at the same level, there will be no need for a
fair value charge and this will help to reduce the losses. The
coming into operation of the power plant was subject to delay
in the installation and commissioning process and will unlikely
produce the expected positive impact in the forthcoming year’s
results.
The hotel operation’s revenues at Rs 99 million were 8%
down on the preceding year. It has been a difficult year
where it achieved a higher occupancy level of 73% (2014:
70%) but with a lower average room rate resulting from the
highly competitive market conditions, characterised by lower
spending by tourists and heavy discounting of hotel rates. The
appreciation of the rupee against the euro during the year did
not help either.
The golf operation’s revenues were slightly lower than in
the preceding year which included higher membership
subscriptions sold while the syndic management operations
continue to improve with higher revenue achieved.
On the profitability front, the Leisure cluster made a loss of Rs 13
million for the year (2014: profit of Rs 4 million). The increase
in Casela World of Adventures’ revenue was accompanied by
an increase in its operating costs to cater for new operational
set-up, higher marketing costs with the launch initiatives,
new depreciation, and finance charges associated with the
investment and release of pre-operational project costs. The
profit realised by the operations associated with Casela World
of Adventures dropped to Rs 53 million (2014: Rs 59 million).
The hotel operation declared a loss of Rs 26 million (2014: Rs
21 million) as a result of the lower revenues realised in the
year under review while the golf operations reduced its loss by
Rs 2 million to Rs 37 million on account of lower operational
costs. The results remain affected by the difficult current
economic environment and market conditions affecting the
tourism industry locally and internationally.
Prospects – The Casela World of Adventures was launched in
the middle of the year under review and the full potential
and benefits of the new operational set-up and the various
sales and marketing initiatives have yet to be seen. There
is considerable scope for growth with both local and tourist
markets and this will be achieved with continued aggressive
marketing strategies and continued innovation and creative
measures to meet the client’s expectations and satisfaction.
The hotel and golf operations are currently subject to a strategic
review that will lead to a number of restructuring initiatives
that will help reduce the losses considerably.
Property Cluster
Overall
Property sale realised during the year under review related to a
newly completed land-parcelling project, namely Sunset View,
several plots of land from existing residential and agricultural
land parceling projects, and two bulk sales. Property sales
value realised amounted to Rs 264 million compared to Rs
367 million in the preceding year which related to two major
residential land-parcelling projects and one agricultural landparcelling project.
The Group’s turnover and other revenues for the year under
review amounted to Rs 1,395 million compared with Rs 1,374
million the previous year. The slight increase in the turnover
was attributable to a combination of two main elements, firstly
the higher revenues achieved by Casela World of Adventures
further to its launch during the year under review and secondly
the drop in sugar prices that impacted on the revenue of the
Agriculture cluster. Revenues from property rental activities
increased and contributed to the Group’s revenues realised
this year.
It should be noted that the property sales value realised is not
accounted as turnover in view of the capital nature of land-sale
transactions. However, the profit realised after accounting for
the cost of land, as revalued in 2006, and other costs associated
with the transaction, are shown in the Income Statement. The
revaluation surplus related to the land sold has been treated as
realised in the Statement of Changes in Equity.
The property rental operations within the Group have been
centralised within the Property cluster and now consist of
commercial spaces at Cascavelle Shopping Mall, office spaces at
Clarens Fields, recently set up buildings for third party operators
and a number of existing land and building leases.
Revenues from the property rental operations amounted to Rs
129 million, 15% higher than in the preceding year. Revenues
of the shopping mall increased by 5% to Rs 91 million with
improved occupancy level, but still remained below expectation
in the midst of the difficult economic environment affecting the
mall’s frequentation while consumer spending improved. The
office spaces at Clarens Fields were fully occupied and revenues
grew by 8% to Rs 23 million in the year under review.
The Property cluster’s profit for the year amounted to Rs 108
million (2014: Rs 73 million) and included a profit of Rs 53
million realised on the sale of Barachois Villas Limited, a
subsidiary that owned the land earmarked for the Akasha
IRS Project. This year’s profit on sale of land accounted in the
Income Statement amounted to Rs 179 million (2014: Rs 207
million), whereas realised reserves were transferred from
the revaluation surplus to retained earnings amounted to Rs
29 million (2014: Rs 39 million). The profit from the property
rental activities improved and reached Rs 17 million (2014: Rs
2 million loss) and was attributable to the improved results of
both the shopping mall and office park, and consolidation of
other property rental activities. The results also took on board
the net costs associated with the setting up and operation of
the Education cluster in its early stage of development.
Prospects - Property sale transactions and derived profits are
dependent on the timing of the completion of land-parcelling
projects which are tributary to obtaining permit clearance and
conclusion of sale transactions with each individual client.
Delay in the timing of completion can potentially create large
fluctuations in profit of sale of land accounted from one year
to another. The cluster has over the years built up a stock of
land that can be made available for sale and thus reduce the
impact of the delays. For financial year 2016, the two major
land-parcelling projects are expected to be completed with
a large part of the property sale transactions concluded and
profit accounted in that financial year. Profit from property
rental activities will grow gradually with the building up of the
investment property portfolio.
The loss declared for the year under review amounted to Rs 86
million, which is lower than the preceding year’s loss at Rs 119
million. The results were once more affected by the depressed
sugar prices with lower sugar proceeds obtained while partly
helped by the compensation received from the Sugar Industry
Fund Board and booked in a fair value charge. The restructuring
of the diversification activities contributed to reduce this
year’s losses. The Leisure cluster declared a loss of Rs 13
million with higher operational costs associated with the new
set-up of Casela and the drop in revenue for the hotel operation.
The Property cluster’s results benefitted from the profit realised
on the sale of land previously earmarked for Akasha IRS project
and took on board the costs of setting up the Education cluster.
Prospects – Should the sugar prices for crop 2015 remain
at the same level as for crop 2014 and supported by a SIFB
compensation, the results of the Agriculture cluster will be
similar to the preceding year except for the fair value charge
with respect to the standing crop value that will not be
applicable. The results of the Leisure cluster are expected to
improve with the new set-up of Casela World of Adventures
being operational for a full year and attaining its cruising speed
while improvements are expected from the golf and hotel
operations. The Property cluster is expected to generate higher
profits in the forthcoming financial year with the realisation of
its residential land-parcelling projects.
Group loss attributable to equity shareholders for the year
amounted to Rs 81 million, compared with a loss of 109 million
the previous year. Loss per equity share amounted to Re 0.77
(2014: Re 1.04).
Total dividends paid and payable amounted to Rs 126 million
(2014: Rs 126 million) and the net asset per share decreased
from Rs 81.74 to Rs 79.78.
Lewis Ah Ching
Chief Finance Officer
25
26
Group Value added Statement
year ended 30 June 2015
%
2015
Rs ’000
%
2014
Rs ’000
Turnover
Bought-in materials and services
1,602,772
(787,531)
1,557,121
(835,273)
Value added
815,241
721,848
67
549,556
73
524,523
-
774
APPLIED AS FOLLOWS
EMPLOYEES
Wages, salaries, bonuses, pensions and other benefits
GOVERNMENT
Income tax
PROVIDERS OF CAPITAL
Dividends
Interests and loss on exchange
Non-controlling interests
REINVESTED
Depreciation and amortisation
Retained loss
38
126,000
187,913
(5,091)
308,822
(1)
39
(6,875)
126,000
164,741
(9,546)
281,195
162,568
(206,479)
(5)
(43,911)
(11)
(76,995)
815,241
100
721,848
100
158,175
(235,170)
Corporate Information
Registered Office
as from 15th October 2015
4 Clarens Fields Business Park
Black River Road
Bambous 90203
Mauritius
Tel: (230) 401 6101
Fax: (230) 452 9600
E-mail: [email protected]
Registrar and Transfer Agent
MCB Registry and Securities Limited
Bankers
The Mauritius Commercial Bank Ltd
Barclays Bank Mauritius Limited
State Bank of Mauritius Ltd
AfrAsia Bank Limited
Auditors
BDO & Co.
(Chartered Accountants)
27
Board Profile
28
René Leclézio
Jacques Li Wan Po
Daniel Giraud
Aged 59. Degree in Chemical
Engineering and MBA (London
Business School). Worked as a
manager at Lloyds Merchant
Bank, London. Managing
Director of Promotion and
Development Ltd and director
of several public and private
companies, including Caudan
Development Ltd, Mauritius
Freeport Development
Company Ltd, Swan General Ltd
and Swan Life Ltd. Appointed
as a director of the Company
in 2001. Vice-Chairman from
2002 to June 2011. Member
of the Corporate Governance
Committee. Chairman of the
Group since 1 July 2011.
Aged 70. Fellow Chartered
Certified Accountant (FCCA).
Executive Chairman of Food
Canners Ltd and its associated
companies and of the New
Goodwill Investment Group,
which includes International
Distillers (Mauritius) Ltd.
Director of several companies
and institutions. Appointed as
a director of the Company in
2004. Chairman of the Audit
Committee. Vice Chairman of
the Company since 1 July 2011.
Aged 63. Holds a Master in
Management Sciences (Paris
Dauphine). Spent 23 years in
the textile industry as CEO of
the Floreal Group (CIEL Textiles),
the largest Mauritian textile
manufacturer. Joined the
Company as Chief Executive
Officer in 2002. Director of the
Company since 2003. Member
of the Corporate Governance
Committee.
Pierre Doger de Spéville
Thomas Doger de Spéville
Lajpati Gujadhur
Aged 77. Notary Public from
1965 to 1997. Director of
the Company since 1978 and
Chairman of the Group from
1999 to 2011. Chairman of
the Corporate Governance
Committee since July 2011.
Aged 25. Holder of an MBA
from the Institut Supérieur de
Commerce de Paris. Founded and
ran two companies specialised in
online promotion. Presently the
General Manager of Monoprix
Bagatelle (CMPL Ltd) since
December 2014. Appointed as a
director on 30 June 2015.
Aged 71. Attorney-at-Law.
Director of Rogers & Co. Ltd
from 1990 to 2000. Director of
the Company since 1988.
Ramapatee Gujadhur
Gérald Lincoln
Jocelyne Martin
Aged 70. Formerly Senior
Manager at The Mauritius
Commercial Bank Ltd. Director
of several companies,
including Air Mauritius Ltd
and Mahanagar Telephone
(Mauritius) Ltd, a fully-owned
subsidiary of MTML India.
Appointed as a director of the
Company in 2004.
Aged 79. Formerly Executive
Manager of The AngloMauritius Assurance Society
Ltd. Consultant to the Chief
Executive of the Swan Group
from 2002 to 2007. Director
of the Company since 1983.
Member of the Corporate
Governance and Audit
committees.
Aged 55. BSc (Econ), London
School of Economics. Member
of the Institute of Chartered
Accountants of England and
Wales. After several years
of experience in the UK,
worked at De Chazal Du Mée
before joining Promotion
and Development as Group
Financial Controller in 1995.
She is also the Company
Secretary. Director of
Promotion and Development
and Caudan Development.
Appointed as a director of
the Company on 18 June
2014. Member of the Audit
Committee since 30 June 2015.
Alain de Ravel de
L’Argentière
Aged 78. Promoter and
formerly manager of several
business entities involved in
salt processing and big-game
fishing in Black River. Director of
the Company from 10 October
2001 to 25 May 2015.
Thierry Sauzier
Aged 47. Holder of a Maîtrise
d’Économie Appliquée from the
University of Paris Dauphine.
Worked in stockbroking and
banking in France and Mauritius
for 12 years before joining
Medine in 2004 as Project
Consultant. Led the Tamarina
Golf Estate IRS project to its
completion, and in 2007, set up
the function that was to become
Medine Property. Managing
Director of the Property cluster
since December 2009. Director
of the Company since December
2010 and Deputy Chief Executive
Officer since February 2011.
Marc de Ravel de
L’Argentière
Aged 52. Spent 19 years
in management at Grays
Ltd. Presently manager and
promoter of several business
entities involved in salt
processing and property
development, and owner
of agricultural land under
sugarcane cultivation. Director
of the Company since 1 July
2008. Member of the Audit
Committee.
Sulliman Adam Moollan
Shakil Ismael Moollan
Aged 76. Graduate in
Economics and member of the
Australian Society of Certified
Practising Accountants (CPA
Australia). Was for some
20 years a director (and a
few times chairman) of The
Stock Exchange of Mauritius
Ltd. Was also a director
of Swan Insurance Co. Ltd
and of The Anglo-Mauritius
Assurance Society Ltd until
2008. Presently Director of
Plastic Industry (Mtius) Ltd
and respectively member
and Chairman of its Audit
and Corporate Governance
committees. Director of the
Company from 28 July 2004 to
21 May 2015 and member of
the Corporate Governance and
Audit committees from April
2005 to May 2015.
Aged 43. Graduated with
a BA (Hons) Finance and
Accounting from the University
of East London (UK). Member
of the Chartered Institute
of Management (UK). After
ten years in accounting firms
(subsequently partner of
Moore Stephens Accounting &
Tax Services, and partner and
co-owner of Parker Randall
Mauritius), founded Moollan
& Moollan (Chartered Certified
Accountants), where he is still
a managing partner. Managing
Director and owner of PCL
Legal Services (Mauritius)
Ltd since 2013. Appointed as
a director on 30 September
2015.
29
30
Senior Management Profile
Daniel Giraud
Chief Executive Officer
Aged 63. Holds a Master in Management Sciences (Paris Dauphine). Spent 23 years in
the textile industry as CEO of the Floreal Group (CIEL Textiles), the largest Mauritian textile
manufacturer. Joined the Company as Chief Executive Officer in 2002. Director of the
Company since 2003. Member of the Corporate Governance Committee.
Thierry Sauzier
Deputy Chief Executive Officer and
Managing Director, Property Cluster
Aged 47. Holder of a Maîtrise d’Économie Appliquée from the University of Paris Dauphine.
Worked in stockbroking and banking in France and Mauritius for 12 years before joining
Medine in 2004 as Project Consultant. Led the Tamarina Golf Estate IRS project to its
completion, and in 2007, set up the function that was to become Medine Property.
Managing Director of the Property cluster since December 2009. Director of the Company
since December 2010 and Deputy Chief Executive Officer since February 2011.
Patricia Goder, ACIS
Group Company Secretary
Aged 47. Chartered Secretary (UK). Worked for accounting and company-secretarial firms
before joining the Group as Deputy Secretary in 2000. Group Company Secretary since
November 2006.
Vincent Labat
Managing Director,
Agriculture Cluster
Aged 53. Joined Les Gaz Industriels Ltd in July 1996 as General Manager and was the
company’s Managing Director from 2003 to 2009. Joined the Company in July 2010 as
Project Development Executive. Appointed Managing Director of the Agriculture cluster
in July 2011.
Alain Paillusseau
Managing Director,
Leisure Cluster
Aged 55. Spent more than 25 years in the hospitality, golf and spa industry with ACCOR
Group and privately owned hotels, as General Manager and Area Manager in Africa,
Middle East and Indian Ocean. Was more recently Regional Manager of Operations and
Development at Pierre & Vacances Group in France. Managing Director of Medine’s Leisure
cluster since October 2012.
Raoul Maurel
Managing Director, Tamarina Hotel,
Golf and Estate
Aged 35. Graduated in Marketing (Murdoch University) and in Food and Beverage
Management. Started his career in hospitality in 2003 and worked in four hotels in
Mauritius and Madagascar. Three years as General Manager of Paradise Cove Boutique
Hotel, before joining Medine Leisure in September 2015.
Paul Williams
Managing Director,
Casela World of Adventures
Aged 46. Made his career in entertainment parks since 2000. Worked at Merlin
Entertainment Group in Europe (General Manager of Sea Life Val d’Europe and Head of
Openings) and Asia (Bangkok Cluster General Manager and Director for Thailand). Joined
Medine as Managing Director of Casela World of Adventures in December 2013.
Lewis Ah Ching, FCA
Chief Finance Officer
Aged 48. Fellow of the Institute of Chartered Accountants in England and Wales (ICAEW).
Began his career in the UK, returned to Mauritius in 1992 to work in industry, and gained
a rich experience in the manufacturing, commercial and tourism sectors. Held a senior
position in a conglomerate before joining the Company as Chief Finance Officer in 2005.
Marc Desmarais
Group Head of Human Resources &
Head of Education
Aged 50. MSc, Human Resources (UCD, Dublin). Has worked at HSBC, both in Mauritius and
internationally, as well as at the MCB. He has more than 15 years of experience at senior
Management level. Group Head of HR since February 2010.
Board of Directors
Directors in Office
The following directors held office at 30 June 2015:
Number of Other
Directorships in Listed
Companies
Directors
Category
René Leclézio (Chairman)
Non-executive
3
Non-executive
-
Thomas Doger de Spéville (as from 30th June 2015)
Independent Non-executive
-
Daniel Giraud
Executive
-
Lajpati Gujadhur
Non-executive
-
Ramapatee Gujadhur
Non-executive
1
Jacques Li Wan Po (Vice-Chairman)
Independent non-executive
-
Gérald Lincoln
-
Jocelyne Martin
Non-executive
2
Sulliman Adam Moollan (up to 21st May 2015)
1
Alain de Ravel de L’Argentière (up to 25th May 2015)
-
Marc de Ravel de L’Argentière
-
Thierry Sauzier
Executive
-
31
Directors of Subsidiary Companies
•
•
•
Hector Espitalier Noël
•
•
•
•
•
•
•
•
•
•
Lajpati Gujadhur
•
Sheo Shankar Gujadhur
•
•
•
•
Philipp Gutsche
Malcolm Horne
•
Dharamdev Jhunput
•
Jean Francois Koenig
•
Vincent Labat
Jacques Li Wan Po
•
Gérald Lincoln
•
•
Rhoy Ramlackhan
•
Thierry Sauzier
•
•
•
•
•
•
•
Eric Espitalier Noël
Anibal Martinez Chaos
•
•
Daniel Giraud
•
•
Gansam Boodram
Marc Desmarais
TGE Management Services Ltd
•
Tamarina Golf Estate Co. Ltd
•
Tamarina Golf Club Ltd
•
Tamarina Beach Club Hotel Ltd
Medine Residential Properties Ltd
•
Talent Solutions Ltd
Medine Eduhousing Ltd
•
Société Reufac
Medine Education Properties Ltd
•
The Medine Sugar Milling Co. Ltd
Le Cabinet Limited
•
Medine Rum Limited
Clarens Fields Ltd
René Leclézio
Casela Limited
Directors
Cascavelle Shopping Mall Ltd
as at 30 June 2015
Career and Recruitment Solutions Ltd
32
•
•
•
•
•
•
•
•
Corporate Social Responsibility Report
Fondation Medine Horizons
Sports and Leisure
Since its creation in 2006, Fondation Medine Horizons (FMH)
operates as the CSR special purpose vehicle of Medine,
focusing on social integration and sustainability projects in
Medine’s catchment area, from Richelieu to Tamarin. It also
collaborates with national initiatives in partnership with
other foundations, local authorities and non-governmental
organisations.
11.Trust Fund for Excellence in Sports, to support 4
promising sportsmen
During the financial year under review, Fondation Medine
Horizons has received a total of Rs 5.5 million of CSR
contributions, including contributions from 20 non-group
companies.
14.Association Sportive Jeunesse de Chebel, for the 1st
division volleyball team
After deduction of administrative expenses, the funds were
allocated to the following projects, inter alia:
Education
1. Ecole Familiale de l’Ouest, Bambous, offering educational, social and professional training for young school
dropouts
2. Centre d’Amitié, Camp La Paille, Bambous, a preprimary school and nursery
3. Association d’Alphabétisation de Fatima, a school for
illiterate young people
4. Special Educational Needs Society (SENS), a specialised
school for the integration of children with special needs
into the local education mainstream
5. Soroptimist International Club of Port Louis, for the
running of their pre-primary school at Richelieu.
Poverty Alleviation and Socio-Economic Development
6. Our flagship project, Local Hands craft incubator,
providing training and technical support to a group of
gifted artisans since 2009
7. Le Pont du Tamarinier, for their social support to 42
relocated households
12.Ranini Cundasawmy (Bambous Martial Arts Sports Club),
who won the bronze medal at the World Championship
of Boxe Francaise Savate (Assault) in 2014
13.Fondation pour la Formation au Football, for the
initiation of youngsters to football
15.Hip-Hop classes for EFO students by the Street Arts &
Sports association
16.Sailing Pour Tous, for children’s initiation to sailing.
Health
17.Haemophilia Association Mauritius, for their support to
patients suffering from haemophilia
18.Heart Foundation Mauritius, for an advance life support
project for the training of local doctors in collaboration
with the University of Manchester in England.
Environment and Heritage
19.Mauritian Wildlife Foundation, for the Pink Pigeon
project
20.SOS Patrimoine en Péril, for the rehabilitation of the
Albion Chimney
In 2015, besides running two projects (Local Hands and the
Promenade de Medine), the FMH has supported:
• 17 voluntary projects undertaken by the Medine
Volunteers, a group of employees who engage in
various voluntary activities
• 12 scholarships for our employees’ children, including
three for university studies, one for technical schooling
and eight for secondary schooling.
8. Étoile du Berger, for the reinsertion of children in need
through a residential project
9. Caritas – La Caze Espwar, for the provision of basic food
items to lower income and vulnerable families
10.Association Kinouete, for the reintegration of female exdetainees.
Sophie Desvaux de Marigny
Head of Corporate Sustainability and Communications
33
Corporate Social
Responsibility Report
34
LocalHands’ expovente at Tamarina Golf
Club (Oct. 2014). Their
craft made of deerantlers is unique in
Mauritius.
Ranini Cundasawmy,
from the Bambous
Martial Arts and
Sports Club, won
Bronze Medal at
the “Boxe Francaise
Savate – Assaut” World
Championship in Italy
(Nov. 2014).
Medine Agriculture
donated 100 trees to
the Richelieu Open
Prison on World
Environment Day
2015.
Le Pont du
Tamarinier
provides social
accompaniment to
families that were
relocated in decent
houses in Black River.
Photo:
Bambous youngsters are trained by Street Arts and
Sports association in hip-hop since Feb 2015.
35
36
The Board of Directors adheres to the highest principles of good governance and ensures that these are followed and applied
throughout the Group. It recognises the importance of such principles and views their application as an opportunity to critically
review the Company’s structure and processes. It believes that the adoption of the highest standards of governance is imperative
for the enhancement of stakeholder value.
The Company’s compliance with the disclosures required under the Code of Corporate Governance for Mauritius is set out below.
Shareholding Structure
Medine Limited is listed on the Development & Enterprise Market (DEM) of the Stock Exchange of Mauritius with an issued and
fully paid-up share capital of Rs 1,050,000,000 consisting of 105,000,000 ordinary shares of Rs 10 each.
There is no ultimate holding company in the capital structure.
PAD*
34.96%
Medine Limited
*Promotion and Development Ltd and its 100% subsidiary, Commercial Holding Ltd
Common Directors
Promotion and
Development Ltd
Commercial
Holding Ltd
Medine Limited
René Leclézio
•
•
•
Jocelyne Martin
•
•
•
Directors
The Medine Group Restructuring
Medine Limited (“MEDINE”), Excelsior United Development Companies Limited (“EUDCOS”) and Société de Développement
Industriel et Agricole Limitée (“SODIA” or “the Companies”) formerly had common shareholders, namely Alma Investments
Company Limited (“Alma”), The Black River Investments Company Limited (“BRI”) and The Medine Shares Holding Company
Limited (“MSH” or “the Holding Companies”). The Companies and Holding Companies are thereafter collectively referred to as the
“Medine Group”.
As decided by the boards of directors of the Medine Group, the Restructuring of the Medine Group was approved on 08 October
2014 by the shareholders of respective companies involved and was undertaken as follows:
• Conversion of the preference shares of MEDINE into ordinary shares of MEDINE in the ratio of 1:1
• Liquidation of MSH and distribution of its core investments (i.e. MEDINE shares, EUDCOS shares and SODIA shares) to shareholders
of MSH
• Liquidation of BRI and distribution of its core investments (i.e. MEDINE shares, EUDCOS shares and SODIA shares) to shareholders
of BRI
• Liquidation of Alma and distribution of its core investments (i.e. MEDINE shares, EUDCOS shares and SODIA shares) to
shareholders of Alma.
Since the Restructuring, the Holding Companies no longer hold shares in the Company and PAD’s effective shareholding therein
increased from 19.46% to 34.96%.
Share Ownership Spread, Shareholder Category Profile, and Major Shareholders
The Company’s share ownership spread, shareholder category profile and major shareholders as at 30 June 2015 were as follows:
ORDINARY
Number of Shareholders
Shares Held
% Held
SPREAD
1 - 500
1,063
172,458
0.16
501 - 1,000
333
251,418
0.24
1,001 - 5,000
802
2,028,331
1.93
5,001 - 10,000
278
1,962,573
1.87
10,001 - 50,000
369
8,483,393
8.08
50,001 - 100,000
90
6,212,173
5.92
100,001 - 250,000
58
8,440,162
8.04
250,001 - 500,000
14
5,124,133
4.88
Over 500,000
24
72,325,359
68.88
3,031
105,000,000
100.00
2,648
46,605,539
44.39
Insurance and Assurance companies
11
2,827,959
2.69
Investment and Trust companies
71
37,859,107
36.06
Pensions and Provident Funds
39
4,243,484
4.04
262
13,463,911
12.82
3,031
105,000,000
100.00
36,709,098
34.96
8,885,434
8.46
CATEGORY
Individuals
Other corporate bodies
SHAREHOLDINGS OVER 5%
PAD*
Mr Pierre Doger de Spéville
*Promotion and Development Ltd’s shareholding inclusive of that of its 100% subsidiary, Commercial Holding Ltd (2,013,237
shares/1.92%)
The number of shareholders given above is indicative, having been obtained by consolidation of multiple portfolios for reporting
purposes. The total number of active shareholders as at 30 June 2015 was 3,086.
37
38
Dividend Policy
Whilst the Board has not determined a formal dividend policy, it endeavours to pay dividends that reflect the Company’s financial
performance after taking into account the funding requirements of the Company’s current and forthcoming projects.
Dividend per ordinary share paid over the past five years (per ordinary and preference share up to 30.06.2014):
Financial Year End
Interim
Rs
Final
Rs
Total
Rs
30.06.2011
0.60
0.40
1.00
30.06.2012
0.60
0.40
1.00
30.06.2013
0.60
0.60
1.20
30.06.2014
0.60
0.60
1.20
30.06.2015
0.60
0.60
1.20
Board of Directors
The Board of Directors is the Company’s ultimate decision-making entity. It is primarily responsible for, among other things, the
review and adoption of strategic plans, the overview of business performance, the adoption of appropriate risk management
systems, and the establishment of proper internal control systems.
The Board is composed of twelve directors – five independent non-executives, five non-executives, and two executives.
The names and profiles of the Board members are set out on pages 28 and 29.
Eight Board meetings were held during the year under review. The directors reviewed and adopted the Company’s and the Group’s
audited financial statements, approved the Company’s and the Group’s budget and unaudited quarterly results, and the declaration
of an interim and a final dividend, and reviewed management reports pertaining to the Group’s three clusters, inter alia.
All directors receive timely information so that they may be able to participate fully in Board meetings.
To ensure a better balance of power and authority on the Board, the functions and roles of the Chairman and the Chief Executive
Officer are separate.
The Chairman is responsible for the leadership of the Board and for ensuring its effectiveness. He is also responsible for ensuring
that the directors receive accurate, timely and clear information, and he encourages the active participation of all Board members
in discussions and decisions.
The Chief Executive Officer is responsible for the executive management of the Company’s operations and for developing and
recommending the long-term strategy and vision of the Company. He also ensures effective communication with stakeholders.
Change in Directors
Mr Sulliman Adam Moollan and Mr Alain de Ravel de L’Argentière submitted their resignation as directors of the Company on 21
and 25 May 2015 respectively.
Mr Thomas Doger de Spéville and Mr Shakil Ismael Moollan were appointed as directors by the Board on 30 June 2015 and 30
September 2015 respectively. Their appointments will subsequently be submitted for approval at the forthcoming annual meeting
of the shareholders.
Conflicts of Interest
Directors do their best to avoid conflicts of interest. Should any conflict or potential conflict occur, it would be the duty of the
Director to make a full and timely disclosure to the Board. Any declaration of interest is entered into the Register of Interests.
However, the Constitution of the Company provides that a director who is interested would not be allowed to vote on any matter
relating to the transaction or proposed transaction in which he is interested and would not be counted in the quorum present at
the Board meeting.
Company Secretary
All Board members have access to the services of the Company Secretary, who is responsible for ensuring that Board procedures
are followed and for the monitoring of corporate-governance processes.
The Company Secretary participates in the induction process of newly appointed directors and ensures that Board members
receive appropriate training as necessary.
Directors’ Share Interests
The directors’ direct and indirect interests in the shares of the Company as at 30 June 2015 were as follows:
ORDINARY
Direct
Directors
Number
René Leclézio
Indirect
%
%
1,110
-
0.12
8,885,434
8.46
4.07
Thomas Doger de Spéville
2,265
-
-
Daniel Giraud
982,366
0.94
-
Lajpati Gujadhur
373,407
0.36
-
1,585,962
1.51
-
Ramapatee Gujadhur
Jacques Li Wan Po
Gérald Lincoln
Jocelyne Martin
Thierry Sauzier
669
-
0.24
112,961
0.11
-
-
-
-
35,838
0.03
-
280
-
-
With regard to directors’ dealings in the shares of the Company, the directors confirm that they have followed the principles of the
Model Code on Securities Transactions by Directors of Listed Companies, as detailed in Appendix 6 of the Mauritius Stock Exchange
Listing Rules.
During the year under review, share dealings by directors were as follows:
Number of Shares
Received* Directly
René Leclézio
Number of Shares
Received* Indirectly
1,080
53,7631
6,282,034
3,062,4972
Daniel Giraud
711,896
735
Lajpati Gujadhur
315,032
-
1,334,425
-
669
197,5513
74,221
-
8,353
-
Ramapatee Gujadhur
Jacques Li Wan Po
Gérald Lincoln
*Shares received through a distribution of assets effected in the course of the voluntary winding up of Alma Investments Co Ltd,
The Black River Investments Co Ltd and The Medine Shares Holding Co Ltd
1. including 5,300 shares purchased indirectly
2. including 500 shares purchased indirectly
3. including 6,621 shares purchased indirectly
39
40
Senior Officers’ Share Interests
Senior officers’ direct and indirect interests in the shares of the Company as at 30 June 2015 were as follows:
ORDINARY
Direct
Indirect
Senior Officers
Number
%
%
Lewis Ah Ching
48,302
-
-
Marc Desmarais
-
-
-
Daniel Giraud
982,366
0.94
-
Patricia Goder
100
-
-
Vincent Labat
-
-
-
Raoul Maurel
-
-
-
Alain Paillusseau
-
-
-
Thierry Sauzier
280
-
-
Paul Williams
-
-
-
During the year under review, share dealings by senior officers were as follows:
Number of Shares
Received* Directly
Number of Shares
Received* Indirectly
Lewis Ah Ching
45,3021
-
Daniel Giraud
711,896
735
*Please refer to the relevant note on the previous page
1. including 21,016 purchased directly
Directors and Officers Liability Insurance
The directors and officers of the Company and of its subsidiaries benefit from an indemnity insurance cover contracted by the
Company.
Constitution
The Company was incorporated as a public company on 27 June 1913 under the name of The Medine Sugar Estates Company
Limited. It changed its name to Medine Limited on 9 September 2009.
The Company’s Constitution is in conformity with the provisions of the Companies Act 2001 and comprises the following main
clauses:
• The Company has wide objects and powers;
• There are no pre-emptive rights on share transfers;
• Fully paid shares are freely transferable;
• The Company is authorised to purchase or otherwise acquire its own shares;
• The quorum for a meeting of shareholders is three shareholders present or represented and holding at least 51% of the
ordinary shares of the Company;
• The minimum number of directors is six and the maximum number is fourteen;
• The quorum for a meeting of the Board is five;
• An additional director may be appointed by the shareholders by ordinary resolution but so that the total number of directors
shall not at any time exceed the maximum number fixed in accordance with the Constitution;
• The Board has the right to appoint any person to be a director to fill a casual vacancy. A director so appointed shall hold office
only until the next following Annual Meeting and shall then retire but shall be eligible for appointment;
• A director who is interested shall not be allowed to vote on any matter relating to the transaction or proposed transaction in
which he is interested and shall not be counted in the quorum present at the meeting;
• In case of equality of votes at either a Board meeting or a meeting of shareholders, the chairman of the meeting has a casting
vote.
A copy of the Company’s Constitution is available upon request in writing to the Company Secretary at the registered office of the
Company, 4 Clarens Fields Business Park, Black River Road, Bambous 90203.
Board Committees
To assist the Board in the discharge of its responsibilities, the following Board committees were established with charters approved
by the Board and which clearly define their terms of reference, composition and functionality.
Corporate Governance Committee
The Corporate Governance Committee at present consists of four members, as follows:
Chairman
Non-executive director
Member
Daniel Giraud
Executive director
Member
René Leclézio
Non-executive director
Member
Gérald Lincoln
Member
Sulliman Adam Moollan (up to 21 May 2015)
Independent non-executive director
st
The committee met three times during the year under review and, in accordance with its formal terms of reference, acted in its
capacity as:
• The Nomination Committee, with the role of making recommendations to the Board in respect of issues relating to the
appointment of directors and the composition, size and structure of the Board, and of ensuring that there is a clearly defined
and transparent procedure for shareholders to recommend potential candidates
• The Remuneration Committee, with the role of making recommendations to the Board on remuneration issues for executive
directors and the Company’s general policy on executive and senior-Management remuneration and packages
• The committee with the responsibility of driving the process for the implementation of the Code of Corporate Governance for
Mauritius throughout the Group and ensuring that the disclosure and reporting requirements set by the Code are complied
with.
41
42
Audit Committee
At present, the Audit Committee consists of four members, as follows:
Chairman
Jacques Li Wan Po
Member
Gérald Lincoln
Member
Jocelyne Martin (as from 30 June 2015)
Member
Sulliman Adam Moollan (up to 21 May 2015)
Member
th
st
The committee met seven times during the year under review and satisfactorily fulfilled its role as defined by its terms of
reference, namely:
• Reviewing the financial reporting process, in particular the accuracy, reliability, integrity, and compliance with legal and
regulatory requirements of the Company’s interim and annual financial statements
• Reviewing the adequacy and effectiveness of its risk management and internal control system
• Assessing and recommending the appointment of internal and external auditors.
The Company Secretary acts as secretary to both committees.
There is transparency and full disclosure from Board committees to the Board of Directors.
Risk Management
The Group’s policy is to develop a minimum framework for governance that lays the foundation for further development of
superior governance practices which are vital for growing the business. The Group recognises that transparent disclosure, financial
controls and accountability are pillars of any good system of corporate governance. It is the Group’s endeavour to attain the highest
level of governance to enhance stakeholder value.
The Group is committed to the identification, monitoring and management of the risks associated with its business activities and
has embedded in its management systems a number of management controls to that end. These include:
• Internal Audit: The Group’s internal audit function has been outsourced to Messrs Ernst & Young, who report regularly to the
Audit Committee. As part of their Internal Audit Plan, Messrs Ernst & Young perform a number of internal audit reviews across
the Group.
• A Compliance and Risk Officer: With the primary role of implementing a risk management framework and to ensure each
business unit is complying with relevant policies and procedures.
• Financial Reporting: The Group has a comprehensive budgeting system, with an annual budget approved by the Board of
Directors. This budget is reviewed on a monthly basis and revised if necessary.
• Insurance: The Group’s primary risks are covered by a number of insurance policies. The Company believes that its assets are
well protected against any foreseeable event.
• Health and Safety: A Group Health and Safety Committee has been set up, with the objective of minimising the health and
safety risks facing employees.
By virtue of the diverse nature of its business activities, the Group is exposed to a variety of risks, as outlined hereunder:
Business Risk
The overall revenues and operating results of the Group depend on a diversity of products and services and this diversified strategy
in itself limits the risk faced by the Group, since the markets involved differ in their structure and economic cycles. The Group has
an informal risk-management process in place as an integral part of its ongoing business-planning processes. Potential negative
developments, such as changes in customer demand or the political framework, are dealt with in a timely manner to avoid
deviations from the business plan.
A key business risk to the Agriculture cluster is the price of sugar. Production is falling and the Group is benefitting less from
economies of scale, which adversely affects its competitiveness in the sugar industry. The Group is, however, still benefitting
from the European Union money used for the restructuring of the sugar industry. Diversification into food crops faces uncertainty
over its return as the local market for vegetables in particular is very price-sensitive and the main risks associated with sugar and
food crop production are caused by natural hazards, such as droughts, cyclones and floods, as well as by harmful factors such as
pests and diseases. The Group has insurance cover for their sugar production and furthermore, the Agriculture cluster has invested
extensively in irrigation systems to manage drought risks.
The Property cluster is influenced mainly by economic growth in the country. The ability of commercial local businesses to rent
properties depends on the former’s financial performance, but with the increased competition due to new shopping malls across
the country and a low economic growth, these businesses may struggle to stay operational. The sale of residential and nonresidential properties relies on local residents’ purchasing power but with economic growth forecast remaining relatively low
for 2014, the prospect of increase in demand remains unknown. Medine Group is also facing uncertainty over the allocation of
permits from the authorities to redevelop land for residential and non-residential projects. Delays in granting permits have been
encountered in the recent past.
The tourism industry has a direct relationship with the activities operated within the Leisure cluster. The occupancy rate of Tamarina
Beach Club Hotel is reflected through the European economies’ performance as this is the main tourism market for Mauritius.
There is a higher demand for golf from the local population which is enhancing the competitiveness of this sector. The Tourism
Authority is helping local businesses by showcasing Mauritius as a golf destination abroad. Another area of risk is the increase in
the variety of leisure activities available to consumers, particularly the new malls opening across the country. Therefore, the Group
has implemented the Casela Master Plan to revamp the nature and leisure park’s operations to increase its popularity.
Human Resources Risk
The Group’s future success and growth is highly dependent on its innovativeness, competence and capabilities, and the commitment
of its employees. Competition to hire the best is further intensified by the scarcity of qualified specialists in the sectors in which
we operate. Therefore, sourcing and recruiting key specialists and talents and retaining them within the Group are priorities for
the Company.
Our managers and employees, with their commitment to the Group, are of central importance to our success. To find key personnel
to fill vacancies, and to avoid losing competent employees, we position ourselves as an attractive employer and promote the longterm retention of employees in the Group. As well as career prospects and attractive incentives, we offer development programmes
where and when needed for senior Management and training for our other employees. We consider talent development a priority
in mitigating the risks of skill mismatch. The management of human resources risk is an ongoing activity that involves careful
planning and constant fluidity to enable Management to tackle any potential changes in the human resources sector. On the basis
of the controls and policy in place, we assume that the likelihood of a serious human resources risk occurring is low.
Information Technology (IT) Risk
IT risks can affect a business’s results when information is unavailable, erroneous or unintentionally disclosed, or when the
processes to be depicted have been implemented in IT systems in a way that is too inflexible, too complex, or illegal. Security gaps
and insufficient emergency planning measures can quickly become incidents that affect the entire Company.
Data protection violations due to incorrect authorisations create a negative external impression. The increasing dependency on
IT, as well as the growing interconnectivity of IT landscapes makes it necessary for companies to invest heavily in maintenance
and enhancement. In addition, data processing is a time-consuming and costly activity. As the complexity of the IT landscape
increases, so do the potential risks and costs to the business.
The general risk situation means that more professional threats can be expected, with the trend moving towards targeted industrial
espionage and sabotage. Significant risk scenarios for the Group include the failure of its central IT systems, the publication of
classified confidential information, and the unauthorised manipulation of its IT systems.
The Group ensures the necessary availability of business-critical application systems and access to business-relevant data by
means of appropriate redundancy of systems, networks and sites, as well as suitable tested contingency measures. Security
guidelines are in place for the entire Group. They include appropriate organisational and technical precautions for access control,
access rights, virus protection, and data protection. The effectiveness of these measures is continuously monitored and reviewed
by the internal auditors as well as the external auditors. A dedicated process ensures that IT risks are evaluated and appropriate
measures taken. On the basis of the measures taken, we assume that the likelihood of a serious IT risk occurring is low.
43
44
Health, Safety and Environmental Risks
Given the diversity of its business activities, the Group is exposed to risks of possible damage to people, goods, and its image.
We minimise the risks to people and the environment by means of auditing, advising and training in matters of environmental
protection as well as occupational health and safety. In order to ensure the continuity of plant and equipment, we monitor these
risks at all our locations. By adhering to high technical standards, our rules of conduct, and all legal requirements in environmental
protection and occupational health and safety, the Group ensures the preservation of its goods and assets.
Legal and Commercial Risks
The multiple business units within the Group minimise legal risk by consulting the Group’s own in-house Legal Counsel, who
provides sound legal advice on relevant files on a day-to-day basis, assists business units in complying with applicable laws and
regulations in force, and vets or drafts a variety of legal documents for the purpose of facilitating business transactions. Having
sound legal documents in place not only ensures quality of service through effective execution by relevant business units of their
own contractual obligations, thus avoiding any claim for damages, but also offers business units, where applicable, the relevant
safeguards and recourse with a view to reducing legal and commercial risks such as ensuring a satisfactory quality of service from
third parties or payment from debtors. The analysis of legal and commercial risks at the conception stage of any potential project
enables business units to effectively carry out due-diligence exercises and adopt the most viable legal framework.
The in-house Legal Counsel ensures effective communication between the Group and external legal advisors, so as to facilitate the
handling of any litigation files. The Group has shown itself to be active in protecting its most valuable assets – its land resources
– by taking the necessary legal measures to minimise the risk of any illegal occupation and/or encroachment and any litigation
where the issue of ownership of land can be disputed.
Market Risk
Some of the Group’s activities are adversely affected by the present economic slowdown in some of their markets in Europe, and
there is a risk that the eurozone’s debt crisis may make matters worse for them in other markets too. By virtue of the diverse
nature of the Group’s investments, however, such events will not significantly affect the overall financial viability of the Group.
Agricultural Risk
The risks associated with sugar and food-crop production are caused by natural hazards, such as drought, cyclones and floods, as
well as by harmful factors such as pests and diseases. The risks associated with natural hazards are covered by insurance.
Financial Risk
The Group’s management of financial risk is detailed in note 3 of the financial statements.
Internal Control
The objective of the internal control system for accounting is to implement controls that provide assurance that the financial
statements are prepared in compliance with the relevant accounting laws and standards. It covers measures designed to ensure
the complete, correct and timely transfer and presentation of information that is relevant for the preparation of the consolidated
financial statements and the management report of the Group.
The internal control system is subject to continuous further development and is an integral component of the accounting and
financial reporting processes of all the Group’s relevant business units and functions. With respect to the accounting process, the
internal control system measures are intended to minimise the risk of material false statements in the consolidated accounting
process of the Group.
Policies, systems, processes and procedures have been put in place and their application is regularly reviewed and assessed by the
internal auditors to ensure that they are effective and are being complied with. Through the audits conducted on the Company’s
various operating units and on its subsidiaries, the external auditors also report and make recommendations to Management and
to the Audit Committee on any material weaknesses in accounting and internal control systems which come to their notice. Their
findings are discussed with Management as well as with the members of the Audit Committee.
Internal Audit
The internal audit function provides to the Audit Committee, to Management and ultimately to the Board independent and
objective assurance as to the adequacy and effectiveness of the risk management and internal control framework and governance
processes.
The internal audit function has been outsourced to Messrs Ernst & Young. As internal auditors, they have unrestricted access to the
records, Management, and employees of all operating units within the Group. They report to the Audit Committee and maintain
an open line of communication with Management.
Since their appointment in 2006, the internal auditors have carried out a number of audit assignments on the basis of an annual
audit plan approved by the Audit Committee. They regularly report their findings to the committee and also review the extent to
which their recommendations are implemented. Their intervention has contributed to the improvement and strengthening of the
internal control systems applicable in the Group’s various operating units.
During the year, the internal auditors reported their findings to the Audit Committee on revenue management and on procurement
to payment process with regard to Medine Property cluster, and procurement to payment process with regard to Casela Limited.
Moreover, the risk and compliance officer reported his findings to the Audit Committee on cash and banking in respect of the
Garden Centre.
Attendance at Board and Committee Meetings
Attendance at Board and committee meetings during the year ended 30 June 2015 was as follows:
Board
Meetings
8
Corporate
Governance
Committee
Meetings
3
Audit Committee
Meetings
7
René Leclézio
7
3
-
8
3
-
Thomas Doger de Spéville (as from 30th June 2015)
1
Daniel Giraud
8
3
-
Lajpati Gujadhur
7
-
-
Ramapatee Gujadhur
7
-
-
Jacques Li Wan Po
7
-
7
Gérald Lincoln
8
3
7
Jocelyne Martin
8
-
-
Sulliman Adam Moollan (up to 21st May 2015)
5
1
4
Alain de Ravel de L’Argentière (up to 25th May 2015)
6
-
-
8
-
7
Thierry Sauzier
8
-
-
DIRECTORS
No. of meetings held
Where Board meetings could not be held, decisions were taken by way of written resolutions signed by all directors.
45
46
Statement of Remuneration Philosophy
The members of the Corporate Governance Committee, in its capacity as the Remuneration Committee, have been entrusted with
determining and recommending to the Board for its approval of the level of non-executive directors’ fees and a general policy on
executive and senior-Management remuneration.
The Group’s underlying philosophy is to set remuneration at an appropriate level to attract, retain and motivate high-calibre
personnel and to reward them in accordance with their individual as well as collective contribution towards the achievement
of the Company’s objectives and performance, whilst taking into account current market conditions and the Company’s financial
position.
The remuneration policy for executive directors approaching retirement is determined by the Corporate Governance Committee
on a case-by-case basis.
The remuneration of the directors for the year under review is set out on page 53.
Third Party Management Agreement
There is no third-party management agreement with regard to the Company or its subsidiaries.
Shareholders’ Agreement
There is no shareholders’ agreement with regard to the Company or its subsidiaries.
Employee Share Option Scheme
There is no share option plan in place within the Group.
Share Price Performance vs Demex over the Past Five Years
RS
200
150
100
Demex Progression
Ordinary Share
Preference Share
50
June 2011
June 2012
June 2013
June 2014
June 2015
Communication with Shareholders
Shareholders are kept informed, through press communiqués, of all material events affecting the Company, especially if an event
could have an effect on the share price.
During the year under review, the Group’s quarterly results, half-yearly results and audited financial statements were submitted to
the Stock Exchange of Mauritius Ltd and to the Financial Services Commission immediately after being approved by the directors
and were published accordingly.
Shareholders are encouraged to attend all meetings of shareholders, annual or special, in order to remain informed of the Group’s
strategy and objectives.
The Annual Report, including the notice of the Annual Meeting of Shareholders, is sent to each shareholder of the Company, and
the notice of the meeting is published in two daily newspapers at least 14 days before the meeting.
At a shareholders’ meeting, the shareholders are given the opportunity to ask questions. The Chairman and the Chief Executive
Officer are normally available to answer them. All directors, including the chairmen of both Board committees, are expected to
attend the Annual Meeting. The Chief Finance Officer and the external auditors are also present to assist the directors in addressing
queries by shareholders.
Calendar of Events
Balance Sheet Date
30 June
Last Annual Meeting of Shareholders
December 2014
Interim dividend 2014/15
Declaration
Payment
11 December 2014
30 January 2015
Final dividend 2014/15
Declaration
Payment
30 June 2015
15 September 2015
Publication of first-quarter results
November
Publication of half-year results
February
Publication of third-quarter results
May
Publication of end-of-year results
September
Publication of Annual Report 2014/15
December 2015
Forthcoming Annual Meeting of Shareholders
December 2015
Related Party Transactions
Details on related-party transactions are given in note 43 of the financial statements.
47
48
Integrated Sustainability Reporting
Code of Ethics and Business Conduct
Medine has adopted a Code of Ethics and Business Conduct, which supports its commitment to a policy of fair dealing, honesty
and integrity in the conduct of its business.
The Code of Ethics and Business Conduct lists and details the standards of behaviour that have made Medine’s reputation and
are those standards which all directors and employees are expected to uphold in conducting the Company’s business. They go
beyond the requirements of law. The Code has been actively endorsed by the Board of Directors and shared with all employees
at all levels in the Group.
Compliance by all employees with the high moral, ethical and legal standards of the Code is mandatory, and if employees become
aware of, or suspect, a contravention of the Code, they are encouraged to promptly and confidentially report it in the prescribed
manner.
Environmental Policy and Initiatives
Medine acknowledges its duty as a responsible corporate citizen to protect the natural environment for future generations. The
Company’s objective is to better understand its adverse environmental impact, to inform and educate its people about it, and to
set achievable goals for reducing it.
The Company has identified its most significant adverse environmental impacts as:
• Depletion of natural resources through the procurement and use of goods and services
• Carbon emissions into the atmosphere from the use of fossil-fuel-based energy in its offices and through its business transport
requirements
• Production of waste in its offices
• Use of water resources and the discharge of wash water to the sewer.
It has also identified its positive environmental impacts as:
• The reduction of waste through the promotion of recycling and waste-management activities
• The introduction and use of a range of energy-saving devices and practices
• The implementation of practices that reduce its carbon emissions.
Medine is committed to managing its environmental impacts and continuously improving its environmental performance by:
• Complying, as a minimum requirement, with relevant legislation, regulations and other relevant requirements
• Where possible, implementing systems that meet the requirements of ISO 14001 as a certified environmental management
system (EMS) and regularly reviewing them
• Setting realistic objectives and targets for each of its most significant environmental impacts
• Minimising its energy consumption and carbon emissions and encouraging the use of less polluting forms of transport
whenever possible
• Minimising the amount of waste produced by way of reduction, recovery, re-use, and recycling
• Communicating its Environmental Statement and relevant procedures to employees and other stakeholders and promoting
environmentally sensitive behaviour
• Where possible, reporting its environmental commitment and performance.
Initiatives taken during the year under review with regard to the environment are outlined hereunder.
Compost Production
Yearly compost utilisation
During the financial year under review, 11,439 tonnes of compost were produced. Compared with the preceding financial year, a
decrease of 9% in compost production was noted. This was due to a decrease in the amount of poultry manure collected. With
the lower amount of poultry manure and higher number of thrash bales collected from sugarcane fields, a more adequate mix
for composting was achieved.
Types of compost used
As in the preceding financial year, filter cake was the major type of compost produced, constituting 72% of the overall production.
The remaining production shares were mostly poultry litter and poultry manure with thrash, accounting for 10% and 6% of the
yearly production respectively. With the signature of the Power Purchase Agreement between Medine Sugar Milling and the CEB,
bagasse would no longer be used for composting.
Uses of compost
Out of 11,439 tonnes of compost available for use 10,650 tonnes were applied in sugarcane fields. While 460 tonnes of compost
were used for the potting and propagation of ornamentals and trees at Medine Nursery, 129 tonnes were used as growing
medium for greenhouse tomatoes and 115 tonnes for plantlet production. Minor quantities were used for landscaping projects.
For the year under review, 1,049 compost bags were retailed at the Company’s Garden Centre.
The way forward
The focus of the coming financial year will be to optimize the use of compost through the development of an integrated fertilization
scheme with organic and inorganic fertilizers for sugarcane production. According to the recommendations of the University of
Mauritius in the context of a joint project on odour management, the composting activity will be monitored to evolve in an
environmentally sound framework.
General Policy on Social, Safety and Health at Work
Medine is a key player in the industrial sector in Mauritius and is always promoting proactive behaviours and practices in the sphere
of health and safety. As a responsible company that considers its workforce and stakeholders a unique asset, Medine continuously
seeks to ensure that health and safety principles are upheld in the workplace and has implemented relevant guidelines to safeguard
its employees.
Senior Management staff also monitor the enforcement of health and safety guidelines by:
•
Promoting a safety and health culture within the organisation
•
Providing employees with adequate training and equipment so as to ensure safe work practices
•
Providing necessary resources to avoid employees taking any undue risks
•
Undertaking necessary corrective and preventive actions when unsafe or unhealthy working conditions are identified.
The participation and involvement of employees in safety and health activities are greatly encouraged whereas their adherence to
established safety practices is mandatory.
Medine undertakes to comply with all the safety and health principles as set in the Occupational Safety and Health Act 2005, so far
as they are reasonably practical to comply with.
HIV/Aids Policy
As Medine recognises the seriousness of HIV/Aids and its possible implications in the workplace, the Company is committed to
protecting its employees and the prosperity of its businesses against the virus. An HIV/Aids Policy has been formulated following
a survey and an awareness campaign carried out in the Group during the year under review. This policy, which is integrated in
Medine’s broader Human Resources Policy, reiterates the Company’s commitment to non-discrimination against, and the protection
of the rights of, HIV-positive employees, as well as to the confidential treatment of any information pertaining to that issue.
49
50
Corporate Sustainability
Information on the social projects initiated and/or realised by Fondation Medine Horizons is given on page 33.
Quality Policy
All companies of the Medine Group work with heart and dedication to bring unprecedented value to our customers and stakeholders
alike.
In doing so, we endeavour to:
• Empower our people for optimum commitment and performance
• Improve our practises to meet highest standards
• Deliver innovative, sustainable and quality products and services.
Human Resources
Medine is an employer who cares and believes in its people and strives for them to be motivated, engaged and committed. Our
Human Resource Function aims to position Medine as a local employer of choice and acts as a strategic partner to the Group’s
business units, where adding value is the measure of success.
The mission of the Human Resource Function is to ‘Develop and motivate employees to give the best of themselves to achieve
professional and personal well-being in alignment with the objectives of the organisation’. Facilitating the enhancement of the
Group’s human resources through a collective approach of people, values and culture, as well as processes and policies also
ensures that Medine is able to ‘attract, motivate, develop and reward’ its quality people. We strongly encourage everyone at
Medine to act within the Group’s values and strong business ethics, and ensure that good governance practices and group policies
are maintained at all times.
Our human resource departments are very attentive to their employees’ needs and constant feedback to accentuate continuous
improvement of HR services. As a result of our last Employee Engagement Survey, the Group decided to organise a yearly ‘Long
Service Award’ to celebrate and congratulate employees with a seniority of 25 years and above.
Training
Talents Solutions Ltd, operating under the brand Talents, is a registered training institution and facility ideally located in the heart
of more than 15 hectares of beautiful natural landscapes in Pierrefonds. The centre is the perfect place to hold training sessions,
fun days, conferences, and other functions. The idea behind the Talents concept is that it personifies all aspects of human potential
and places learning and continuous development at the centre of its long-term vision. With the ever-increasing demands of the
job and the changes taking place in and around the workplace, the need for a well-trained and motivated staff and workforce
becomes vital to the success of the organisation. The importance of mindset and attitude remains central to the philosophy of the
centre and transpires in all the courses and services it offers.
Each year, operating units are required to allocate a percentage of their basic wage bill to training. This process lies in the bigger
picture of bringing a more structured approach to the way training is performed within the Group.
Patricia Goder
Secretary
30 September 2015
Statement of Directors’ Responsibilities
Company law requires the directors to prepare financial statements for each financial year, which present fairly the financial
position, financial performance and cash flow of the Company and of the Group. In preparing such financial statements, the
directors are required to:
• Select suitable accounting policies and then apply them consistently
• Make judgements and estimates that are reasonable and prudent
• State whether International Financial Reporting Standards have been followed and complied with, subject to any material
departures being disclosed and explained in the financial statements
• Prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the Company will
continue in business.
The directors confirm that they have complied with the above requirements in preparing the financial statements.
The directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2001.
They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The directors report that:
• Adequate accounting records and an effective system of internal control and risk management have been maintained
• The Code of Corporate Governance has been adhered to and, where there has not been compliance, relevant explanations
have been provided in the Statement of Compliance
• The external auditors are responsible for reporting on whether the financial statements are fairly presented.
Signed on behalf of the Board of Directors
René Leclézio
Chairman
30 September 2015
Daniel Giraud
51
52
Statement of Compliance
(Section 75(3) of the Financial Reporting Act)
Name of Public Interest Entity (‘P.I.E’): Medine Limited
Reporting period: Year ended 30 June 2015
We, the directors of Medine Limited, hereby confirm to the best of our knowledge that the P.I.E has complied with most of its
obligations and requirements under the Code of Corporate Governance.
Reasons for non-compliance with some sections of the Code are given below:
Sections of the Code
Reasons for non-compliance
2.2.6
Each director is not reappointed every year at the Meeting of Shareholders as the Company’s
Constitution does not contain any provision for such a procedure.
Directors who are over the age of 70 are reappointed every year in compliance with section
138(6) of the Companies Act 2001.
2.8.2
The emoluments of the directors have not been disclosed on an individual basis, because
of the commercial sensitivity of such information.
2.10
No Board or Director’s appraisal has been carried out during the year under review, but the
relevant process will be implemented during the next financial year.
René Leclézio
Chairman
30 September 2015
Daniel Giraud
Directors’ Names and Interests in Shares
The names of the directors of the Company and their share interests are set out on page 39.
In addition, a list of directors of subsidiary companies is given on page 32.
Directors’ Service Contracts
Messrs Daniel Giraud and Thierry Sauzier have an employment contract with the Company with no expiry date. The other directors
have no service contract with the Company.
Directors’ Remuneration and Benefits
2014/15
Rs
2013/14
Rs
20,474,464
19,339,780
1,845,000
2,115,000
29,900
20,000
138,250
130,000
-
-
59,900
59,850
Directors of the Holding Company
Remuneration and benefits paid by the holding company to:
- Executive directors
- Non-executive directors
Remuneration and benefits paid by subsidiary companies to:
Other Directors of Subsidiary Companies
Remuneration and benefits paid by the respective subsidiary companies to:
Contracts of Significance
During the year under review, there was no contract of significance to which the Company was a party and in which a director of
the Company was interested, either directly or indirectly.
Substantial Shareholders
Details of substantial shareholders are set out on page 37.
53
54
Donations
Group
Donations made during the year:
- Political
- CSR
- Other donations
Company
2014/15
Rs
2013/14
Rs
2014/15
Rs
2013/14
Rs
6,950,000
1,777,400
988,715
1,259
2,866,468
6,950,000
1,777,400
988,715
1,259
280,927
Auditors’ Remuneration
Group
Company
2014/15
Rs
2013/14
Rs
2014/15
Rs
2013/14
Rs
- BDO & Co.
2,505,000
2,360,000
925,000
880,000
- Other firms
-
-
-
-
- BDO & Co.
-
-
-
-
- Other firms
-
-
-
-
Audit fees paid to:
Fees paid for other services provided by:
Dividends
An interim dividend of Re 0.60 and a final dividend of Re 0.60 per ordinary share and totalling Rs 126 million (2013/14 totals:
Rs 1.20 per ordinary and preference – Rs 126 million) were declared on 11 December 2014 and 30 June 2015 respectively for the
year ended 30 June 2015. These were paid on 30 January and 15 September 2015 respectively.
René Leclézio
Chairman
30 September 2015
Daniel Giraud
Secretary’s Certificate
June 30, 2015
In my capacity as Company Secretary of Medine Limited (the ‘’Company’’), I certify that, to the best of my knowledge and belief,
the Company has filed with the Registrar of Companies for the financial year ended June 30, 2015 all such returns as are required
of the Company under the Companies Act 2001.
Patricia Goder
Company Secretary
30 September 2015
55
56
Independent Auditors’ Report
to the Members
This report is made solely to the members of Medine Limited
(the “Company”), as a body, in accordance with Section 205 of
the Companies Act 2001. Our audit work has been undertaken
so that we might state to the Company’s members those matters
we are required to state to them in an auditors’ report and for
no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our audit
work, for this report, or for the opinions we have formed.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements on pages 57 to 124
give a true and fair view of the financial position of the Group
and of the Company as at June 30, 2015 and of their financial
performance and their cash flows for the year then ended in
accordance with International Financial Reporting Standards and
comply with the Companies Act 2001.
Report on the Financial Statements
We have audited the Group financial statements of Medine
Limited and its subsidiaries (the ‘’Group’’) and the Company’s
separate financial statements set out on pages 57 to 124 which
comprise the statements of financial position as at June 30, 2015
and the statements of profit or loss and other comprehensive
income, statements of changes in equity and statements of cash
flows for the year then ended and a summary of significant
accounting policies and other explanatory notes.
Directors’ Responsibility for the Financial Statements
The directors are responsible for the preparation and fair
presentation of these financial statements in accordance with
International Financial Reporting Standards and in compliance
with the requirements of the Companies Act 2001, and for such
internal control as the directors determine is necessary to enable
the preparation of the financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Report on Other Legal and Regulatory Requirements
Companies Act 2001
We have no relationship with, or interests in, the Company or
any of its Subsidiaries, other than in our capacity as auditors and
dealings in the ordinary course of business.
We have obtained all information and explanations we have
required.
In our opinion, proper accounting records have been kept by
the Company as far as it appears from our examination of those
records.
Financial Reporting Act 2004
The directors are responsible for preparing the corporate
governance report. Our responsibility is to report on the extent of
compliance with the Code of Corporate Governance as disclosed
in the annual report and on whether the disclosure is consistent
with the requirements of the Code.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those
Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material
misstatement.
In our opinion, the disclosure in the annual report is consistent
with the requirements of the Code.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’
judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditors consider
internal control relevant to the Company’s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of the
financial statements.
BDO & Co
Chartered Accountants
Port Louis,
Mauritius.
September 30, 2015
Per Georges Chung
Ming Kan, F.C.C.A
Licensed by FRC
Statements of Financial Position - June 30, 2015 57
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
5
6
7
8
9
9,485,434
1,560,601
21,679
-
39,412
9,238,412
1,260,880
17,140
-
33,960
7,333,301
671,846
11,259
1,977,147
22,643
7,730,930
547,146
16,978
820,119
21,020
10
11
12
13
92,675
675,971
95,638
7,542
73,627
743,096
100,353
16,325
92,667
675,462
95,638
-
73,619
742,117
100,353
-
11,978,952
11,483,793
10,879,963
10,052,282
12
14
15
16
37
191,657
44,048
322,129
-
16,326
223,158
56,574
371,192
-
12,191
191,657
12,603
117,635
336,088
5,226
223,158
22,796
215,203
498,022
8,551
574,160
663,115
663,209
967,730
12,553,112
12,146,908
11,543,172
11,020,012
EQUITY AND LIABILITIES
Capital and reserves
Share capital
17
Revaluation surplus and other reserves
18
Retained earnings
1,050,000
6,191,900
1,135,276
1,050,000
6,219,931
1,313,171
1,050,000
5,717,908
2,582,203
1,050,000
6,030,838
2,034,066
Owners’ interest
Non-controlling interests
8,377,176
135,965
8,583,102
125,872
9,350,111
-
9,114,904
-
Total equity
8,513,141
8,708,974
9,350,111
9,114,904
13
19
20
21
13,471
4,125
1,727,232
207,479
11,450
4,125
1,301,876
201,041
-
-
373,879
164,838
195,643
160,611
1,952,307
1,518,492
538,717
356,254
Current liabilities
Borrowings
Trade and other payables
Amount due to group companies
Dividends
20
22
23
24
1,056,768
967,896
-
63,000
916,643
939,799
-
63,000
841,188
736,178
13,978
63,000
675,499
805,510
4,845
63,000
2,087,664
1,919,442
1,654,344
1,548,854
Total liabilities
4,039,971
3,437,934
2,193,061
1,905,108
Total equity and liabilities
12,553,112
12,146,908
11,543,172
11,020,012
Note
ASSETS
Non-current assets
Property, plant and equipment
Investment properties
Intangible assets
Investments in subsidiaries
Investments in associates
Investments in available-for-sale
financial assets
Deferred expenditure
Biological assets
Deferred tax assets
Current assets
Biological assets
Inventories
Trade and other receivables
Amount due from group companies
Cash in hand and at bank
Total assets
LIABILITIES
Non-current liabilities
Deferred tax liabilities
Other payable
Borrowings
Retirement benefit obligations
The financial statements were approved for issue by the Board of Directors on September 30, 2015.
René Leclézio
Director
Daniel Giraud
Director
The notes on pages 62 to 124 form an integral part of these financial statements.
Auditors’ report on page 56.
58 Statements of Profit or Loss and Other Comprehensive Income
- Year ended June 30, 2015
The Group
The Holding Company
Note
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Turnover
25
Sugar insurance compensation
Other operating revenue
26
1,262,345
72,112
60,735
1,309,228
758
63,829
491,023
52,094
86,221
789,780
711
89,703
Operating expenses
27
Sugar insurance premium
Other (losses)/gains
28
Changes in fair value of bearer biological assets
12
Changes in fair value of consumable biological
assets
12
1,395,192
(1,439,983)
(620)
(2,160)
(23,978)
1,373,815
(1,382,526)
(19,317)
1,028
(26,517)
629,338
(727,211)
(453)
-
(23,978)
880,194
(894,638)
(13,294)
(26,517)
(35,074)
(89,611)
(35,074)
(89,611)
Operating loss
Other income
29
(106,623)
34,130
(143,128)
40,957
(157,378)
59,129
(143,866)
65,344
Profit on sale of land
30
Amortisation of VRS costs
11 (b)
Fair value loss of investment properties
6
Impairment of investments in subsidiaries
8
Impairment of goodwill
41 (a)
Gain on deemed disposal of investment
in subsidiary
41 (b)
Gain/(loss) on disposal of investment
in subsidiary
41 (c)
Share of profit in associates
9
(72,493)
160,385
(46,084)
(1,753)
-
(4,044)
(102,171)
189,333
(46,847)
(6,905)
-
-
(98,249)
1,203,585
(46,084)
(7,230)
(604,044)
-
(78,522)
189,333
(46,847)
(7,205)
-
Profit before finance costs
Finance costs
31
100,957
(185,753)
40,178
(165,769)
442,491
(80,703)
56,759
(69,743)
33
35
(84,796)
(774)
(125,591)
6,875
361,788
-
(12,984)
-
(85,570)
(118,716)
361,788
(12,984)
(Loss)/Profit before taxation
Income tax (charge)/credit
(Loss)/Profit for the year
Other comprehensive income for the year
Items that may be reclassified
subsequently to profit or loss
Increase in fair value of availablefor-sale investments
Items that will not be reclassified
subsequently to profit or loss
Remeasurement of retirement benefit
obligations
Share of other comprehensive income
of associates
Income tax relating to component of other
comprehensive income
Other comprehensive income for the year, net of tax
1,416
-
53,375
10,155
-
6,768
-
(5,487)
-
-
19,048
6,844
19,048
6,844
38
(16,803)
8,488
(19,629)
6,924
38
(183)
6
38
(720)
10 & 18
Total comprehensive income for the year
(Loss)/Profit attributable to:
- Owners of the parent
- Non-controlling interests
(235)
-
-
-
-
1,342
15,103
(581)
(84,228)
(103,613)
361,207
(80,479)
(5,091)
(109,170)
(9,546)
361,788
-
(12,984)
(12,984)
13,768
784
Total comprehensive income attributable to:
(85,570)
(118,716)
361,788
(79,926)
(4,302)
(94,333)
(9,280)
361,207
-
784
-
(84,228)
(103,613)
361,207
784
3.45
(0.12)
(Loss)/Earnings per share (Re.)
36
(0.77)
(1.04)
Statements of Changes in Equity - Year ended June 30, 2015 59
The Group
Attributable to owners of the parent
Note
Revaluation
Surplus
and
Share
Other
Capital
Reserves
Rs’000
Rs’000
Balance at July 1, 2014
1,050,000
6,219,931
Loss for the year
Other comprehensive income
for the year
38 (a)
-
-
-
553
-
553
-
-
Total comprehensive income
for the year
Consolidation adjustment
(i)
Transfer - revaluation surplus
realised on disposal of land
18 (a)
Dividends to owners of the parent
24
Balance at June 30, 2015
-
-
1,050,000
(28,584)
-
6,191,900
1,050,000
6,244,619
Loss for the year
Other comprehensive income
for the year
38 (a)
-
-
-
14,837
Total comprehensive income
for the year
-
14,837
-
-
Acquisition of non controlling
interest
41 (d)
18 (a)
Dividends to owners of the parent
24
-
-
1,050,000
(39,525)
-
6,219,931
Retained
Earnings
Rs’000
1,313,171
(80,479)
-
(80,479)
-
28,584
(126,000)
Non Controlling
Total
interests
Rs’000
Rs’000
8,583,102
(80,479)
553
(79,926)
-
-
(126,000)
1,135,276 8,377,176
1,508,591
(109,170)
-
(109,170)
225
39,525
(126,000)
8,803,210
(109,170)
14,837
(94,333)
225
-
(126,000)
1,313,171 8,583,102
125,872
(5,091)
789
Total
Equity
Rs’000
8,708,974
(85,570)
1,342
(4,302)
(84,228)
14,395
14,395
-
-
(126,000)
135,965
8,513,141
148,094
8,951,304
(9,546)
266
(118,716)
15,103
(9,280)
(103,613)
(12,942)
(12,717)
-
-
(126,000)
125,872
8,708,974
Note (i): The consolidation adjustment is in respect of the increase in the stated capital of The Medine Sugar Milling Company
Limited and the incorporation of a new subsidiary company, Career Recruitment Solution Ltd.
60 Statements of Changes in Equity - Year ended June 30, 2015
The Holding Company
Share
Note
Capital
Rs’000
Revaluation
Surplus and
Other Reserves
Rs’000
Retained
Earnings
Rs’000
Total
Rs’000
6,030,838
2,034,066
9,114,904
1,050,000
Profit for the year
38 (b)
-
-
-
(581)
361,788
-
361,788
(581)
-
(581)
361,788
361,207
Transfer - revaluation surplus realised
on disposal of land
Dividends
18 (b)
24
-
-
(312,349)
-
312,349
(126,000)
(126,000)
1,050,000
5,717,908
2,582,203
9,350,111
1,050,000
6,056,595
2,133,525
9,240,120
Loss for the year
38 (b)
-
-
-
13,768
(12,984)
-
-
13,768
(12,984)
on disposal of land
Dividends
18 (b)
24
-
-
(39,525)
-
39,525
(126,000)
1,050,000
6,030,838
2,034,066
(12,984)
13,768
784
(126,000)
9,114,904
Statements of Cash Flows - Year ended June 30, 2015 61
The Group
Note
2015
Rs’000
The Holding Company
2014
Rs’000
2015
Rs’000
2014
Rs’000
Operating activities
Cash received from customers
Cash paid to suppliers and employees
1,429,778
(1,249,748)
1,317,646
(1,230,141)
751,250
(686,084)
834,196
(801,862)
Cash generated from operations
Interest paid
31
Interest received
Income tax refund
180,030
(193,559)
7,511
-
87,505
(169,655)
13,110
26
65,166
(81,934)
16,578
-
32,334
(71,519)
33,886
-
(6,018)
(69,014)
(190)
(5,299)
435,553
(226,245)
(812,300)
(14,967)
8,118
(67,275)
90,490
319,249
(252,770)
(195,984)
(9,169)
-
(8,888)
-
435,553
(226,245)
(102,486)
(2,788)
8,118
-
90,490
319,249
(252,770)
(75,604)
(9,141)
-
Net cash outflow from operating activities
Investing activities
Net proceeds from sale of land
Expenditure in respect of land development 11 (a)
Purchase of property, plant and equipment
37(c)
Purchase of intangible assets
7
Proceeds on disposal of intangible assets
Purchase of investment properties
6
Proceeds on disposal of investment properties
Purchase of investment in availablefor-sale financial assets
10
Proceeds on disposal of investment
in available-for-sale financial assets
Purchase of additional investments in
subsidiaries
Net cash outflow on acquisition of
subsidiaries
41 (a) (iv)
Net cash inflow on disposal of
subsidiaries
41 (c) (iv)
Purchase of investment in associates
9
Proceeds on disposal of property, plant
and equipment
Other dividends received
Net cash (outflow)/inflow
from investing activities
Financing activities
Cash granted to group companies
Cash (refunded to)/advanced by related
company
Issue of shares to non-controlling interest
Loans received
Loans repaid
Finance lease repaid
Acquisition of non- controlling interests
41 (d)
Dividends paid to owners of the parent
25
-
(80)
-
-
9,352
-
-
(122,430)
(17,843)
-
(18,000)
-
163,901
(5,500)
-
-
163,959
-
-
3,892
8,658
101,896
10,175
3,467
8,658
338,242
3,081
(277,664)
(92,685)
102,162
10,175
(333,731)
(125,740)
-
-
-
(80)
9,352
(50)
(105,483)
14,395
889,250
(458,713)
(28)
-
(126,000)
378,126
-
131,200
(229,463)
-
(12,717)
(126,000)
(277,764)
-
360,000
(73,110)
(28)
-
(126,000)
378,126
(209,176)
(12,717)
(126,000)
Net cash inflow/(outflow) from financing
activities
213,421
141,146
(394,566)
(62,452)
(Decrease)/increase in cash and cash
equivalents
(126,328)
(53,608)
(56,514)
(64,670)
Movement in cash and cash equivalents
At July 1,
(Decrease)/increase
(193,910)
(126,328)
(140,302)
(53,608)
(115,838)
(56,514)
(51,168)
(64,670)
At June 30,
(320,238)
(193,910)
(172,352)
(115,838)
38
62 Notes to the Financial Statements - Year ended June 30, 2015
1 GENERAL INFORMATION
Medine Limited is a limited liability company incorporated and domiciled in Mauritius. The main activity of the company
consists principally of the planting of sugar cane for the production of sugar and by-products of sugar cane namely
molasses and bagasses and other agricultural products. The registered office of Medine Limited is situated at 11th Floor,
Medine Mews, 4 Chaussée Street, Port Louis and its place of business is at Bambous.
These financial statements will be submitted for consideration and approval at the forthcoming Annual Meeting of
Shareholders of the Company.
2 SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set out below:
These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The financial statements comply with the Companies Act 2001 and have been prepared in accordance with International
Financial Reporting Standards (IFRS). The financial statements include the consolidated financial statements of the parent
company and its subsidiary company (The Group) and the separate financial statements of the parent company (The
Company). The financial statements are presented in Mauritian Rupees.
Where necessary comparative figures have been amended to conform with change in presentation in the current year. The
financial statements are prepared under the historical cost convention, except that:
(i) certain property, plant and equipment are carried at revalued amounts/deemed costs;
(ii) available-for-sale investments are stated at fair value;
(iii) investment properties are stated at fair value;
(iv) biological assets are stated at fair value; and
(v) relevant financial assets and financial liabilities are stated at fair value or at amortised cost.
Amendments to published Standards and Interpretations effective in the reporting period
Amendments to IAS 32, ‘Offsetting Financial Assets and Financial Liabilities’, clarify the requirements relating to the offset
of financial assets and financial liabilities. The amendment is not expected to have any impact on the Group’s financial
statements.
Amendments to IFRS 10, IFRS 12 and IAS 27, ‘Investment Entities’, define an investment entity and require a reporting
entity that meets the definition of an investment entity not to consolidate its subsidiaries but instead to measure its
subsidiaries at fair value through profit or loss in its consolidated and separate financial statements. Consequential
amendments have been made to IFRS 12 and IAS 27 to introduce new disclosure requirements for investment entities. As
the Company is not an investment entity, the standard has no impact on the Group’s financial statements.
IFRIC 21, ‘Levies’, sets out the accounting for an obligation to pay a levy that is not income tax. The interpretation
addresses what obligating event that gives rise to pay a levy and when should a liability be recognised. The Company is
not subject to levies so the interpretation has no impact on the Group’s financial statements.
Amendments to IAS 36, ‘Recoverable Amount Disclosures for Non- financial Assets’, remove the requirement to disclose
the recoverable amount of a cash-generating unit (CGU) to which goodwill or other intangible assets with indefinite useful
lives had been allocated. The amendment has no impact on the Group’s financial statements.
Amendments to IAS 39, ‘Novation of Derivatives and Continuation of Hedge Accounting’, provide relief from the
requirement to discontinue hedge accounting when a derivative designated as a hedging instrument is novated under
certain circumstances. The amendments also clarify that any change to the fair value of the derivative designated as
a hedging instrument arising from the novation should be included in the assessment and measurement of hedge
effectiveness. The amendment has no impact on the Group’s financial statements.
Notes to the Financial Statements - Year ended June 30, 2015 63
2 SIGNIFICANT ACCOUNTING POLICIES (continued)
2.1 Basis of preparation (continued)
Amendments to published Standards and Interpretations effective in the reporting period (continued)
Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) applies to contributions from employees or third
parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between
contributions that are linked to service only in the period in which they arise and those linked to service in more than
one period. The objective of the amendment is to simplify the accounting for contributions that are independent of
the number of years of employee service, for example employee contributions that are calculated according to a fixed
percentage of salary.
Entities with plans that require contributions that vary with service will be required to recognise the benefit of those
contributions over employee’s working lives. The amendment has no impact on the Group’s financial statements.
Annual Improvements 2010-2012 Cycle
IFRS 2, ‘Share based payments’ amendment is amended to clarify the definition of a ‘vesting condition’ and separately
defines ‘performance condition’ and ‘service condition’. The amendment has no impact on the Group’s financial statements.
IFRS 3, ‘Business combinations’ is amended to clarify that an obligation to pay contingent consideration which meets the
definition of a financial instrument is classified as a financial liability or equity, on the basis of the definitions in IAS 32,
‘Financial instruments: Presentation’. It also clarifies that all non-equity contingent consideration is measured at fair value
at each reporting date, with changes in value recognised in profit and loss. The amendment has no impact on the Group’s
IFRS 8, ‘Operating segments’ is amended to require disclosure of the judgements made by management in aggregating
operating segments. It is also amended to require a reconciliation of segment assets to the entity’s assets when segment
assets are reported. The amendment has no impact on the Group’s financial statements.
IFRS 13 (Amendment), ‘Fair Value Measurement’ clarifies in the Basis for Conclusions that short-term receivables and
payables with no stated interest rates can be measured at invoice amounts when the effect of discounting is immaterial.
The amendment has no impact on the Group’s financial statements.
IAS 16,’Property, plant and equipment’ and IAS 38,’Intangible assets’ are amended to clarify how the gross carrying
amount and the accumulated depreciation are treated where an entity uses the revaluation model. The amendment has
no impact on the Group’s financial statements.
IAS 24,’Related party disclosures’ is amended to include, as a related party, an entity that provides key management
personnel services to the reporting entity or to the parent of the reporting entity (the ‘management entity’). Disclosure
of the amounts charged to the reporting entity is required. The amendment has no impact on the Group’s financial
statements.
Annual Improvements 2011-2013 Cycle
IFRS 1, ‘First-time Adoption of International Financial Reporting Standards’ is amended to clarify in the Basis for Conclusions
that an entity may choose to apply either a current standard or a new standard that is not yet mandatory, but permits
early application, provided either standard is applied consistently throughout the periods presented in the entity’s first
IFRS financial statements. The amendment has no impact on the Group’s financial statements, since the Group is an
existing IFRS preparer.
IFRS 3,’Business combinations’ is amended to clarify that IFRS 3 does not apply to the accounting for the formation of any
joint venture under IFRS 11. The amendment has no impact on the Group’s financial statements.
IFRS 13,’Fair value measurement’ is amended to clarify that the portfolio exception in IFRS 13 applies to all contracts
(including non-financial contracts) within the scope of IAS 39 or IFRS 9. The amendment has no impact on the Group’s
IAS 40,’Investment property’ is amended to clarify that IAS 40 and IFRS 3 are not mutually exclusive. IAS 40 assists users
to distinguish between investment property and owner-occupied property. Preparers also need to consider the guidance
in IFRS 3 to determine whether the acquisition of an investment property is a business combination. The amendment has
no impact on the Group’s financial statements.
2.1 Basis of preparation (continued)
Standards, Amendments to published Standards and Interpretations issued but not yet effective
Certain standards, amendments to published standards and interpretations have been issued that are mandatory for
accounting periods beginning on or after January 1, 2015 or later periods, but which the Group has not early adopted.
At the reporting date of these financial statements, the following were in issue but not yet effective:
IFRS 9 Financial Instruments
Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)
IFRS 14 Regulatory Deferral Accounts
Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11)
Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)
IFRS 15 Revenue from Contract with Customers
Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)
Equity Method in Separate Financial Statements (Amendments to IAS 27)
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
Annual Improvements to IFRSs 2012-2014 Cycle
Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)
Disclosure Initiative (Amendments to IAS 1)
Where relevant, the Group is still evaluating the effect of these Standards, amendments to published Standards and
Interpretations issued but not yet effective, on the presentation of its financial statements.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in Note 4.
2.2 Property, plant and equipment
Land and buildings, held for use in the production or supply of goods or for administrative purposes, are stated at their
fair value, based on periodic valuations, by external independent valuers, less subsequent depreciation for buildings. Any
accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the
net amount is restated to the revalued amount of the asset.
Up to 2004, certain property, plant and equipment were revalued yearly on a replacement cost basis using indices
provided by the Mauritius Sugar Authority less subsequent depreciation.
All other property, plant and equipment are initially recorded at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Costs may also include transfers from equity of any
gains/losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. All repairs
and maintenance are charged to profit or loss during the financial period in which they are incurred.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can
be measured reliably.
Increases in the carrying amount arising on revaluation are credited to other comprehensive income and shown as
revaluation surplus in shareholders’ equity. Decreases that offset previous increases of the same asset are charged against
revaluation surplus, directly in equity; all other decreases are charged to profit or loss.
2.2 Property, plant and equipment (continued)
Properties in the course of construction for production, rental or administrative purposes or for purposes not yet determined
are carried at cost less any recognised impairment loss. Cost includes professional fees and for qualifying assets, borrowing
costs capitalised. Depreciation of these assets, on the same basis as other property assets, commences when the assets
are ready for their intended use.
Depreciation on other assets is calculated on the straight-line method to write off the cost or revalued amounts of the
assets to their residual values over their estimated useful lives as follows.
Annual rates (%)
Leasehold land
5%
Improvement to land
1% and 10%
Factory buildings and equipment
1% - 33%
Weighing equipment
2.5% - 3.6%
Cultivation equipment
3% - 20%
Transport equipment
10% and 20%
Residential buildings and welfare equipment
2% - 5%
Other buildings, farming equipment, animals and structures 1% - 33%
Golf course and infrastructure
1%
Freehold Land is not depreciated.
The assets’ residual values, useful lives and depreciation method are reviewed, and adjusted prospectively, if appropriate,
at the end of each reporting period.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately
to its recoverable amount.
Gains and losses on disposal of property, plant and equipment are determined by reference to their carrying amount
and are included in profit or loss. On disposal of revalued assets, amounts in revaluation surplus relating to that asset are
transferred to retained earnings.
2.3 Investment property
Investment property, held to earn rentals/or for capital appreciation or both and not occupied by the Group is carried
at fair value, representing open-market value determined annually. Changes in fair values are included in profit or loss.
Gains and losses on disposal of investment property are determined by reference to their carrying amount and are
recognised in profit or loss.
When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value
and reclassified as investment property.
When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value at the date
of reclassification becomes its cost for subsequent accounting.
2.4 Intangible assets
(a) Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business
less accumulated impairment losses, if any.
Goodwill is tested annually for impairment.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gains and losses
on disposal. Goodwill is allocated to cash-generating units for the purpose of impairment testing.
2.4 Intangible assets (continued)
(b) Computer software
Acquired computer software licences are capitalised on the basis of costs incurred to acquire and bring to use the specific
software and are amortised over their estimated useful lives (3 - 10 years).
Costs associated with developing or maintaining computer software are recognised as an expense as incurred.
2.5 Investments in subsidiaries
Separate financial statements of the investor
Investments in subsidiaries are carried at cost. The carrying amount is reduced to recognise any impairment in the value
of individual investments.
Consolidated financial statements
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity
when the Group is exposed to, or has rights to, variable returns from its involvment with the entity and has the ability to
affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated
from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the group. The consideration
transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the
equity interests issued by the group.
The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an
acquisition-by-acquisition basis, the group recognises any non-controlling interests in the acquiree either at fair value or
at the non-controlling interest’s proportionate share of the acquiree’s net assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisitiondate fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is
recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain
purchase, the difference is recognised directly in profit or loss as a bargain purchase gain.
Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated.
Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Transactions with non-controlling interests
The Group treats transactions with non-controlling interests as transactions with equity owners of the group. For purchases
from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the
carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests
are also recorded in equity.
Disposal of subsidiaries
When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its
fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount
for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial assets. In
additions, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for
as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised
in other comprehensive income are reclassified to profit or loss.
2.6 Investments in associates
Separate financial statements of the investor
Investments in associated companies are carried at cost. The carrying amount is reduced to recognise any impairment in
the value of individual investments.
Consolidated financial statements
An associate is an entity over which the Group has significant influence but not control, or joint control, generally
accompanying a shareholding between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method. Investments in associates are initially recognised at
cost as adjusted by post acquisition changes in the group’s share of the net assets of the associate less any impairment
in the value of individual investments.
Any excess of the cost of acquisition over the Group’s share of the net fair value of the associate’s identifiable assets and
liabilities recognised at the date of acquisition is recognised as goodwill, which is included in the carrying amount of
the investment. Any excess of the Group’s share of the net fair value of identifiable assets and liabilities over the cost of
acquisition, after assessment, is included as income in the determination of the Group’s share of the associate’s profit or
loss.
When the Group’s share of losses exceeds its interest in an associate, the Group discontinues recognising further losses,
unless it has incurred legal or constructive obligation or made payments on behalf of the associate.
Unrealised profits and losses are eliminated to the extent of the Group’s interest in the associate. Unrealised losses are also
eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Where necessary, appropriate adjustments are made to the financial statements of associates to bring the accounting
policies used in line with those adopted by the Group.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the
amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.
Dilution gains and losses arising in investments in associates are recognised in profit or loss.
2.7 Financial assets
(a) Categories of financial assets
The Group classifies its financial assets in the following categories: loans and receivables and available-for-sale financial
assets. The classification depends on the purpose for which the investments were acquired.
Management determines the classification of its investments at initial recognition and re-evaluates this designation at
every reporting period.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any
of the other categories. They are included in non-current assets unless management intends to dispose of the investment
within twelve months of the reporting period.
(b) Recognition and measurement
Initial measurement
Purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or
sell the asset. Investments are initially measured at fair value plus transaction costs for all financial assets.
Subsequent measurement
Available-for-sale financial assets are subsequently carried at their fair values.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot
be reliably measured are measured at cost.
2.7 Financial assets (continued)
(b) Recognition and measurement (continued)
Subsequent measurement (continued)
Unrealised gains and losses arising from changes in the fair value of financial assets classified as available-for-sale are
recognised in other comprehensive income. When financial assets classified as available-for-sale are sold or impaired, the
accumulated fair value adjustments are included in profit or loss as gains and losses on financial assets.
The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and
for unlisted securities), the Group establishes fair value by considering various valuation techniques. These include the use
of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flows
analysis, option pricing models refined to reflect the issuer’s specific circumstances, cost and dividend basis.
Derecognition
Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been
transferred and the Group has transferred substantially all risks and rewards of ownership.
(c) Impairment of financial assets classified as available-for-sale
The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or a
group of financial assets is impaired. In the case of equity investments classified as available-for-sale, a significant or
prolonged decline in the fair value of the security below its cost is considered in determining whether the securities are
impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss measured as the difference
between acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised
in equity is removed from equity and recognised in profit or loss.
Impairment losses recognised in profit or loss for an investment in an equity instrument classified as available-for-sale
are not reversed through profit or loss.
2.8 Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment. A provision for impairment of trade receivables is established when
there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of
receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value
of estimated future cash flows, discounted at the effective interest rate. The amount of provision is recognised in profit
or loss.
2.9 Borrowings
Borrowings are recognised initially at fair value being their issue proceeds net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption
value is recognised in profit or loss over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least twelve months after the end of the reporting period.
2.10Trade and other payables
Trade and other payables are stated at their fair value and subsequently measured at amortised cost using the effective
interest method.
2.11Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdraft. Bank overdraft is
shown within borrowings in current liabilities on the statement of financial position.
2.12Share capital
(a) Ordinary shares
Ordinary shares are classified as equity.
(b) Preference share capital
Preference share capital is classified as equity and it is non-redeemable or redeemable only at the Company’s option, and
any dividend is discretionary. Discretionary dividends thereon are recognised as distribution within equity upon approval
by the Company’s shareholders.
2.13Biological assets
(a) Bearer biological assets
Sugar cane plantations
Sugar cane plantations are carried at their fair value. The fair value is measured at cost less amortisation. These relate to
cane replantation costs and are amortised over a period of 8 years.
(b) Consumable biological assets
Standing sugar cane crop
Standing canes are measured at their fair value. The fair value of standing canes is the present value of expected net cash
flows from the standing canes discounted at the relevant market determined pre-tax rate.
(c) Consumable biological assets (continued)
Other crops and plants
Other crops and plants are measured at their fair value. The fair value of the other crops and plants is the present value
of expected net cash flows from the sale of the other crops and plants, discounted at the relevant market determined
pre-tax rate.
(d)Changes in fair value of bearer biological assets and consumable biological assets are recognised in profit or loss.
2.14Deferred Expenditure
(a) Land Development and Expenditure
Land Development and Expenditure is in respect of costs incurred to prepare land in a saleable condition that is to be sold
and is released to profit or loss on disposal.
(b) Voluntary Retirement Scheme
VRS costs (net of refunds under the Multi Annual Adaptation Scheme and pension obligations previously provided for) are
carried forward on the basis that under the Scheme, the Company acquires the right to sell land on which no conversion
taxes are payable. The VRS costs will be recouped through the sale of these lands. These amounts are amortised over
a period of 5 years. The amortisation is reviewed and reassessed yearly to ascertain the adequacy of the yearly charge
taking into account the right exercised.
2.15Current and deferred income taxes
The tax expense for the period comprises of current and deferred tax. Tax is recognised in profit or loss, except to the
extent that it relates to items recognised in other comprehensive income or directly in equity.
Current tax
The current income tax charge is based on taxable income for the year calculated on the basis of tax laws enacted or
substantively enacted by the end of the reporting period.
2.15Current and deferred income taxes (continued)
Deferred tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. However, if the deferred income tax arises
from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the
transaction affects neither accounting nor taxable profit or loss, it is not accounted for.
Deferred income tax is determined using tax rates that have been enacted or substantively enacted at the reporting date
and are expected to apply in the period when the related deferred income tax asset is realised or the deferred income
tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which
deductible temporary differences can be utilised.
For the purposes of measuring deferred tax liabilities and deferred tax assets for investment properties that are measured
using the fair value model, the carrying amounts of such properties are presumed to be recovered entirely through sale,
unless the presumption is rebutted. The presumption is rebutted when the investment property is depreciable and is
held within a business model whose objective is to consume substantially all of the economic benefits embodies in the
investment property over time, rather than through sale.
2.16Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined by the weighted average method.
The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related
production overheads, but excludes interest expenses. Net realisable value is the estimate of the selling price in the
ordinary course of business, less the costs of completion and selling expenses.
2.17Retirement benefit obligations
(a) Defined contribution plans
A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity.
The Group has not legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets
to pay all employees the benefits relating to employee service in the current and prior periods.
Payments to defined contribution plans are recognised as an expense when employees have rendered services that
entitle them to the contributions.
(b) Defined benefit plans
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically defined benefit plans define an
amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such
as age, years of service and compensation.
The liability recognised in the statement of financial position in respect of defined benefit pension plans is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by independent actuaries using the projected unit credit method.
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions, the return on plan assets (excluding interest) and the effect of the
asset ceiling (if any, excluding interest), is recognised immediately in other comprehensive income in the period in
which they occur. Remeasurements recognised in other comprehensive income shall not be reclassified to profit or loss
in subsequent period.
The Group determines the net interest expense/(income) on the net defined benefit liability/(asset) for the period by
applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net
defined benefit liability/(asset), taking into account any changes in the net defined liability/(asset) during the period as
a result of contributions and benefit payments. Net interest expense/(income) is recognised in profit or loss.
Service costs comprising current service cost, past service cost, as well as gains and losses on curtailments and settlements
are recognised immediately in profit or loss.
2.17Retirement benefit obligations (continued)
(c) Gratuity on retirement
Artisans and labourers of sugar companies are entitled to a gratuity on death or retirement, based on years of service.
This item is not funded. The benefits accruing under this item are calculated by an actuary and have been accounted for
in the financial statements.
For employees who are not covered by the above pension plans, the net present value of gratuity on retirement payable
under the Employment Rights Act 2008 is calculated by an actuary and provided for. The obligations arising under this
item are not funded.
2.18 Foreign currencies
(a)Functional and presentation currency
Items included in the financial statements (of each of the Group’s entities) are measured using Mauritian rupees, the
currency of the primary economic environment in which the entity operates (“functional currency”).
The consolidated financial statements are presented in Mauritian rupees, which is the company’s functional and
presentation currency. All values are rounded to the nearest thousand (Rs’000) except where otherwise indicated.
(b)Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in profit or loss.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in profit or loss
within ‘finance income or cost’. All other foreign exchange gains and losses are presented in profit or loss within ‘other
(losses)/gains – net’.
Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at
the date of the transaction.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the
date the fair value was determined.
2.19Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets
that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying
amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less
costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows (cash-generating units).
2.20Accounting for leases
Leases are classified as finance leases where the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased property and the present
value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as
to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit or
loss unless they are attributable to qualifying assets in which case, they are capitalised in accordance with the policy on
borrowing costs.
The property, plant and equipment acquired under finance leasing contracts is depreciated over the useful life of the asset.
2.21Operating leases
Assets leased out under operating leases are included in investment properties in the statement of financial position. The
carrying amounts of investment properties represent their fair value. Rental income is recognised in profit or loss on a
straight line basis over the lease term.
2.22Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised until
such time as the assets are substantially ready for their intended use or sale. Other borrowing costs are expensed.
2.23Dividend distribution
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the period in
which the dividends are declared.
2.24Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable
for goods supplied and services rendered, stated net of discounts, returns, value added taxes, rebates and other similar
allowances and after eliminating sales within the Group.
(a) Sales of goods
Sales of goods are recognised when the goods are delivered and titles have passed, at which time all of the following
conditions are satisfied:
•
the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
•
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold;
•
the amount of revenue can be measured reliably;
•
it is probable that the economic benefits associated with the transaction will flow to the Group; and
•
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The recognition of sugar and molasses proceeds is based on total production of the crop year. Bagasse proceeds are
accounted for in the year in which it is received.
Sugar prices are based on the recommendations made to all sugar companies by the Mauritius Chamber of Agriculture
after consultation with the Mauritius Sugar Syndicate. Any differences between the recommended prices and the final
prices are reflected in profit or loss of the period in which they are established.
(b) Rendering of services
Revenue from rendering of services are recognised in the accounting year in which the services are rendered. (by reference
to the completion of the specific transaction assessed on the basis of the actual service provided as a proportion of total
services to be provided.)
Sales of services (golf playing rights) are recognised in the accounting year in which the services are rendered (by
reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of
total services to be provided).
Admission fee that permits only membership of the golf club is recognised as revenue when no significant uncertainty as
to its collectibility exists.
(c)Other revenues earned by the Group are recognised on the following bases:
•
Dividend income is recognised when the shareholder’s right to receive payment is established.
•Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired,
the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at
original effective interest rate, and continues unwinding the discount as interest income. Interest income on impaired
loans is recognised either as cash is collected or on a cost-recovery basis as conditions warrant.
2.24Revenue recognition (continued)
(c)Other revenues earned by the Group are recognised on the following bases (continued):
•
Rental income and management fee are recognised on an accruals basis in accordance with the substance of the relevant
agreements.
•Other income – on an accrual basis unless collectibility is in doubt.
2.25Sale of land
The profit arising on sale of land is recognised in profit or loss on the date the deed of sale is signed and the corresponding
debtor accounted in the statement of financial position. All other prepayments collected in respect of sale of land are
credited to ‘’Deposit on sale of land’’ in the statement of financial position.
2.26Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is
probable that an outflow of resources that can be reliably estimated will be required to settle the obligation.
2.27Segment reporting
Segment information presented relates to operating segments that engage in business activities for which revenues are
earned and expenses incurred.
3 FINANCIAL RISK MANAGEMENT
3.1 Financial Risk Factors
The Group’s activities expose it to a variety of financial risks, including:
• Foreign exchange risk;
• Credit risk;
• Interest rate risk;
• Liquidity risk;
• Equity market price risk; and
• Market risk.
A description of the significant risk factors is given below together with the risk management policies applicable.
Foreign exchange risk
The Group is exposed to foreign exchange risk arising from various currency exposures primarily with respect to US dollars,
Euros and GBP. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities.
The group’s dealings in foreign currency purchases is managed by seeking the best rates. Fluctuations arising on purchase
transactions are partly offset by sales transactions, effected in US dollars, Euros and GBP to some extent.
The Group
At June 30, 2015, if the rupee had weakened/strengthened by 1% against the US dollar/Euro/GBP with all variables held
constant, post tax profit of the group for the year would have been Rs.580,000 (2014: Rs.447,000) higher/lower, mainly
as a result of foreign exchange gains/losses on translation of US dollar/Euro/GBP denominated assets.
3 FINANCIAL RISK MANAGEMENT (continued)
3.1 Financial Risk Factors (continued)
Foreign exchange risk (continued)
Profit is more sensitive to movement in exchange rates in 2015 than 2014 because of the increased amount of US dollar/
Euro/GBP denominated assets.
USD
EURO
GBP
MUR
Total
2015
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Bank balances
2014
Bank balances
407
300
4,786
47,228
427
432
10,706
274,169
16,326
322,129
USD
Rs’000
EURO
Rs’000
GBP
Rs’000
MUR
Rs’000
Total
Rs’000
26
146
1,329
43,588
78
508
10,758
326,950
12,191
371,192
The Holding Company
At June 30, 2015, if the rupee had weakened/strengthened by 1% against the US dollar/Euro/GBP with all variables held
constant, post tax profit of the company for the year would have been Rs. 17,000 (2014: Rs.50,000) higher/lower, mainly
as a result of foreign exchange gains/losses on translation of US dollar/Euro/GBP denominated bank balances. Profit is
less sensitive to movement in exchange rates in 2015 than 2014 because of the decreased amount of US dollar/Euro/
GBP denominated bank balances.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet
its contractual obligations and arises principally from the Group’s trade and other receivables. The amounts presented in
the statement of financial position are net of allowances for doubtful receivables, estimated by the Group’s management
based on prior experience and the current economic environment.
The Group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and
customers. The Group has policies in place to ensure that sales of products and services are made to customers with an
appropriate credit history. Cash transactions are limited to high credit quality financial institutions. The Group has policies
that limit the amount of credit exposure to any financial institution.
The table below shows the credit concentration of the group and the company at the end of the reporting period:
Counterparties
10 major counterparties per company
Others (diversified risk)
The Group
The Holding Company
2015
%
2014
%
2015
%
2014
%
58
42
62
38
60
40
57
43
100
100
100
100
Management does not expect any losses from non-performance of these customers.
Interest rate risk
The Group’s income and operating cash flows are exposed to interest rate risk as it sometimes borrows at variable rates.
The Group has interest-bearing assets.
The Group
At June 30, 2015, if the interest rates on rupee-denominated borrowings had been 1% lower/higher with all other
variables held constant, post-tax profit for the year would have been Rs.38,165,000 (2014: Rs.17,564,000) higher/lower,
mainly as a result of lower/higher interest expense on floating rate borrowings.
Interest rate risk (continued)
The Group (continued)
The above risk is mitigated by the interest-bearing assets as follows:
At June 30, 2015, if the interest rates on rupee-denominated bank balances and interest bearing assets had been 1%
lower/higher with all other variables held constant, post-tax profit for the year would have been Rs.3,123,000 (2014:
Rs.7,583,000) lower/higher, mainly as a result of lower/higher interest income on bank balances.
The Holding Company
At June 30, 2015, if the interest rates on rupee-denominated borrowings had been 1% lower/higher with all other
variables held constant, post-tax profit for the year would have been Rs. 11,184,000 (2014: Rs.8,417,000) higher/lower,
mainly as a result of lower/higher interest expense on floating rate borrowings.
The above risk is mitigated by the interest-bearing assets as follows:
At June 30, 2015, if the interest rates on rupee-denominated bank balances and interest bearing assets had been 1%
lower/higher with all other variables held constant, post-tax profit for the year would have been Rs. 3,123,000 (2014:
Rs.6,400,000) lower/higher, mainly as a result of lower/higher interest income on bank balances and interest bearing
assets.
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivery of cash or another financial asset.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability
of funding through an adequate amount of committed credit facilities and the ability to close out market positions.
The Group aims at maintaining flexibility in funding by keeping committed credit lines available.
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period
at the end of the reporting period to the contractual maturity date.
Less than
1 year
Rs’000
Between 1
and 2 years
Rs’000
Between 2
and 5 years
Rs’000
Over
5 years
Rs’000
Total
Rs’000
At June 30, 2015
Bank overdrafts
Finance Lease
Bank loans
336,564
467
719,737
967,896
-
494
233,541
-
-
2,885
796,297
-
-
-
694,015
-
336,564
3,846
2,443,590
967,896
At June 30, 2014
Bank overdrafts
Bank loans
206,101
710,542
939,799
-
147,529
-
-
602,270
-
-
552,077
-
206,101
2,012,418
939,799
Less than
1 year
Rs’000
Between 1
and 2 years
Rs’000
Between 2
and 5 years
Rs’000
Over
5 years
Rs’000
Total
Rs’000
At June 30, 2015
Bank overdrafts
Bank loans
Finance Lease
177,578
663,143
467
13,978
736,178
-
60,143
494
-
-
-
295,286
2,885
-
-
-
15,071
-
-
-
177,578
1,033,643
3,846
13,978
736,178
At June 30, 2014
Bank overdrafts
Bank loans
124,389
551,110
4,845
805,510
-
60,142
-
-
-
90,286
-
-
-
45,215
-
-
124,389
746,753
4,845
805,510
The Group
The Holding Company
Equity market price risk
The Group is susceptible to equity market price risk arising from uncertainties about future prices of the equity securities
because of investments held by the Group and classified on the statement of financial position as available-for-sale. To
manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.
Sensitivity analysis
The table below summarises the impact of increases/decreases in the fair value of the investments on equity. The analysis
is based on the assumption that the fair value has increased/decreased by 5%
Impact on equity
The Group
Available-for-sale
Market risk The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
4,633
3,681
4,633
3,681
The Group is exposed to market risk arising from changes in sugar prices and the incidence of the exchange rate. This risk
will directly impact on future crop proceeds. The risk is not hedged.
3.2 Fair value estimation
The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting
period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker,
industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market
transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current
bid price. These instruments are included in level 1.
Instruments included in level 1 comprise primarily quoted equity investments classified as trading securities or availablefor-sale.
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques.
These valuation techniques maximise the use of observable market data where it is available and rely as little as possible
on specific estimates. If all significant inputs required to fair value an instruments are observable, the instument is
included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their
fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual
cashflows at the current market interest rate that is available to the Group for similar financial instruments.
3.3 Biological assets
The Group is exposed to fluctuations in the price of sugar and the incidence of exchange rate, which affect both the crop
proceeds and the fair value of biological assets. The risk is not hedged.
3.4 Capital risk management
The Group’s objectives when managing capital are:
• to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for shareholders
and benefits for other stakeholders; and
• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
3.4 Capital risk management (continued)
The Group sets the amount of capital in proportion to risk. The Group manages the capital structure and makes adjustments
to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares, or sell assets to reduce debt.
Consistently with others in the industry, the Group monitors capital on the basis of the debt-to-adjusted capital ratio.
This ratio is calculated as net debt to adjusted capital. Net debt is calculated as total debt (as shown in the Statement of
financial position) less cash and cash equivalents. Adjusted capital comprises all components of equity (ie share capital,
share premium, non-controlling interests, retained earnings, and revaluation surplus and other reserves).
During 2015, the Group’s strategy, which was unchanged from 2014, was to maintain the debt-to-adjusted capital ratio at
the lower end, in order to secure access to finance at a reasonable cost.
The debt-to-adjusted capital ratios at June 30, 2015 and at June 30, 2014 were as follows:
The Group
2015
Rs’000
The Holding Company
2015
Rs’000
2014
Rs’000
2014
Rs’000
Total debt (note 20)
Less: cash and cash equivalents (note 37)
2,784,000
(16,326)
2,218,519
(12,191)
1,215,067
(5,226)
871,142
(8,551)
Net debt
2,767,674
2,206,328
1,209,841
862,591
Total equity
Add: subordinated debt instruments
8,513,141
-
8,708,974
-
9,350,111
-
9,114,904
-
Adjusted capital
8,513,141
8,708,974
9,350,111
9,114,904
0.33:1
0.25 : 1
0.13:1
0.09:1
Debt-to-adjusted capital ratio
The increase in the debt-to-adjusted capital ratio during 2015 resulted primarily from the increase in borrowings to finance
the capital expenditure of the Group.
There were no changes in the Group’s approach to capital risk management during the year.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continuously evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a) Impairment of available-for-sale financial assets
The Group follows the guidance of IAS 39 on determining when an investment is other-than-temporarily impaired. This
determination requires significant judgement. In making this judgement, the Group evaluates, among other factors, the
duration and extent to which the fair value of an investment is less than its cost, and the financial health of and near-term
business outlook for the investee, including factors such as industry and sector performance, changes in technology and
operational and financing cash flow.
(b) Biological assets
(i) Bearer biological assets - Sugar cane plantations
The fair value of sugar cane plantations has been estimated based on the cost of land preparation and planting of
bearer canes.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
(b) Biological assets (continued)
(ii) Consumable biological assets - Standing Sugar Canes
The fair value of standing sugar canes crop has been arrived at by discounting the present value (PV) of expected net cash
flows from standing canes discounted at the relevant market determined pre-tax rate.
The expected cash flows have been computed by estimating the expected crop and the sugar extraction rate and the
forecasts of sugar prices which will prevail in the coming year. The harvesting costs and other direct expenses are based
on the yearly budget of the company.
Other key assumptions for biological assets are disclosed in Note 12.
(c) Land
The land of the Group were valued at June 30, 2006 at fair value based on the valuation report made by JPW International
Ltd, Property Surveyor, on an open market value basis. The valuation was computed by reference to market prices for
similar properties.
(d) Investment properties
Investment properties, held to earn rentals/or for capital appreciation or both and not occupied by the Group/Company is
carried at fair value with changes in fair value being recognised in profit or loss. Investment properties consist of freehold
land and buildings. Freehold land of the group and the holding company classified as investment properties have been
valued at their open market value on June 30, 2006 by JPW International Ltd (Property Surveyor). Buildings classified
as investment properties have been valued at cost less accumulated depreciation. The directors are of opinion that the
carrying amounts of the investment properties represent their fair value.
(e) Pension benefits
The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis
using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the
discount rate. Any changes in these assumptions will impact the carrying amount of pension obligation.
The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to
determine the present value of estimated future cash outflows expected to be required to settle the pension obligations.
In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the
terms of the related pension obligation.
Other key assumptions for pension obligation are based in part on current market conditions. Additional information is
disclosed in Note 21.
(f) Limitations of sensitivity analysis
Sensitivity analysis in respect of market risk demonstrates the effect of a change in a key assumption while other
assumptions remain unchanged. In reality, there is a correlation between the assumptions and other factors. It should also
be noted that these sensitivities are non-linear and larger or smaller impacts should not be interpolated or extrapolated
from these results.
Sensitivity analysis does not take into consideration that the Group’s assets and liabilities are managed. Other limitations
include the use of hypothetical market movements to demonstrate potential risk that only represent the Group’s view of
possible near-term market changes that cannot be predicted with any certainty.
(g) Impairment of assets
Property, plant and equipment, investment properties and intangible assets are considered for impairment if there is a
reason to believe that impairment may be necessary. Factors taken into consideration in reaching such a decision include
the economic viability of the asset itself and where it is a component of a larger economic unit, the viability of that unit
itself.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
(g) Impairment of assets (continued)
Future cash flows expected to be generated by the assets or cash-generating units are projected, taking into account
market conditions and the expected useful lives of the assets. The present value of these cash flows, determined using an
appropriate discount rate, is compared to the current net asset value and, if lower, the assets are impaired to the present
value.
Cash flows which are utilised in these assessments are extracted from the yearly budget.
(h) Fair value of securities not quoted in an active market
The fair value of securities not quoted in an active market may be determined by the Group using valuation techniques
including third party transaction values, earnings, net asset value, cost, dividend or discounted cash flows, whichever is
considered to be appropriate. The Group would exercise judgement and estimates on the quality and quantity of pricing
sources used. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(i) Asset lives and residual values
Property, plant and equipment are depreciated over its useful life taking into account residual values, where appropriate.
The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.
In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are
taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the
asset and projected disposal values. Consideration is also given to the extent of current profits and losses on the disposal
of similar assets.
(j) Depreciation policies
Property, plant and equipment are depreciated to their residual values over their estimated useful lives. The residual value
of an asset is the estimated net amount that the Company would currently obtain from the disposal of the asset, if the
asset were already of the age and in condition expected at the end of its useful life.
The directors therefore make estimates based on historical experience and use best judgement to assess the useful lives
of assets and to forecast the expected residual values of the asset at the end of their expected useful lives.
(k) Deferred tax on investment properties
For the purposes of measuring deferred tax liabilities or deferred tax assets arising from investment properties the directors
reviewed the Group’s investment property portfolio and concluded that none of the Group’s investment properties are
held under a business model whose objective is to consume substantially all of the economic benefits embodied in the
investment properties over time, rather than through sales. Therefore, in determining the Group’s deferred taxation on
investment properties, the directors have determined that the presumption that the carrying amounts of investment
properties measured using the fair value model are recovered entirely through sale is not rebutted. As a result, the Group
has not recognised any deferred taxes on changes in fair value of investment properties as the Group is not subject to any
capital gain taxes on disposal of its investment properties.
-
-
-
111
111
-
111
-
(175,140)
-
7,081,649
82,598
6,999,051
7,081,649
At June 30, 2015
- Cost
- Valuation
7,081,649
NET BOOK VALUE
At June 30, 2015
8
103
249,116
14,399
13,388
1,011
-
-
-
263,515
259,515
4,000
263,515
-
-
4,000
-
-
-
259,515
-
-
259,515
-
337,698
499,128
451,841
47,296
(9)
-
-
836,826
463,797
373,029
836,826
-
-
-
-
-
-
752,477
84,371
(22)
379,448
373,029
2,385
8,708
8,576
132
-
-
-
11,093
6,372
4,721
11,093
-
-
-
-
-
-
11,093
-
-
6,372
4,721
85,377
548,570
532,934
20,896
(5,260)
-
-
633,947
633,947
-
633,947
-
-
-
-
-
-
631,115
8,092
(5,260)
631,115
-
32,385
191,352
200,005
9,508
(18,148)
-
(13)
223,737
219,297
4,440
223,737
-
(38)
-
-
-
-
228,963
13,762
(18,950)
224,523
4,440
Cultivation Transport
Equipment Equipment
Rs’000
Rs’000
25,885
414
-
414
-
-
-
26,299
26,299
-
26,299
-
-
-
-
-
-
-
26,299
-
-
-
31,680
21,347
50,120
11,223
(39,996)
-
-
53,027
53,027
-
53,027
5,616
-
-
-
-
-
95,464
6,667
(54,720)
95,464
-
1,276,096
588,120
531,195
67,915
(28,963)
18,010
(37)
1,864,216
1,835,054
29,162
1,864,216
26,661
(470)
8,270
-
21,243
(102,269)
1,405,139
551,723
(46,081)
1,383,985
21,154
208,034
19,309
17,916
1,393
-
-
-
227,343
227,343
-
227,343
-
-
-
-
-
-
227,343
-
-
227,343
-
Other
Residential
Buildings,
Golf
Buildings &
Farming
Course
Welfare Equipment
and
Animals Equipment & Structures Infrastructure
Rs’000
Rs’000
Rs’000
Rs’000
32,277
(233,972)
12,270
(107,296)
40,243
(102,269)
11,044,490
816,174
(125,033)
3,378,659
7,665,831
Total
Rs’000
3,962,481
7,414,403
155,121
-
-
-
-
-
-
9,485,434
1,891,450
1,806,078
159,788
(92,376)
18,010
(50)
155,121 11,376,884
155,121
-
155,121 11,376,884
-
(58,324)
-
-
-
-
88,185
125,260
-
88,185
-
Work
in
progress
Rs’000
Borrowing costs of Rs.5,573,000 (note 31) arising on the financing of the construction cost of building and structures of Rs.434,838,000 have been capitalised and have been included in ‘Additions’. This represents a capitalisation rate
of 1.2% for the borrowing cost of the loan used to finance the project.
Note (ii): The consolidation adjustments are in respect of the acquistion of Le Cabinet Ltd during the year ended June 30, 2015.
Note (i): The consolidation adjustments are in respect of the disposal of the subsidiary company, Barachois Villas Company Limited and the decrease in the shareholding in Broll Property and Facility Management Limited from 100%
to 50%. Hence, Broll Property and Facility Management Limited is now considered as an associate instead of a subsidiary company.
-
At June 30, 2015
103
-
-
-
-
-
(107,296)
-
-
-
-
-
-
19,000
DEPRECIATION
At July 1, 2014
Charge for the year
Disposal adjustments
Impairment loss
Consolidation adjustment (note (i))
-
-
111
-
111
-
-
82,598
7,262,487
7,345,085
-
-
Additions
Disposals
Transfer to investment
property (note 6)
Transfer from investment
property (note 6)
Transfer to land development
and expenditure (note 11(a))
Transfer from land development
Consolidation adjustment (note (i))
Consolidation adjustment (note (ii))
(i)
COST AND VALUATION
At July 1, 2014
- Cost
- Valuation
Factory
Freehold Leasehold Improvement Buildings &
Weighing
Land
Land
to land Equipment Equipment
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
PROPERTY, PLANT AND EQUIPMENT
(a) The Group
5
At June 30, 2014
- Cost
- Valuation
7,345,085
NET BOOK VALUE
At June 30, 2014
8
103
-
-
-
-
-
-
-
At June 30, 2014
103
-
-
-
111
-
111
(43,412)
7,345,085
7,345,085
-
-
111
-
-
-
82,598
7,262,487
111
-
-
-
111
-
Leasehold
Land
Rs’000
7,388,497
-
-
-
82,598
7,305,899
DEPRECIATION
At July 1, 2013
Charge for the year
Adjustment for assets
scrapped
property (note 6)
Additions
Assets scrapped
Disposals
property (note 6)
(ii) COST AND VALUATION
At July 1, 2013
- Cost
- Valuation
Freehold
Land
Rs’000
PROPERTY, PLANT AND EQUIPMENT (continued)
(a) The Group (continued)
5
246,127
13,388
-
-
-
10,772
2,616
259,515
259,515
-
259,515
-
22,123
-
237,392
-
-
-
237,392
-
Improvement
to land
Rs’000
300,636
451,841
-
-
-
425,780
26,061
752,477
379,448
373,029
752,477
-
-
-
729,596
22,881
-
-
356,567
373,029
2,517
8,576
-
-
-
8,444
132
11,093
6,372
4,721
11,093
-
-
-
11,093
-
-
-
6,372
4,721
98,181
532,934
-
-
(5,173)
516,528
21,579
631,115
631,115
-
631,115
-
-
-
600,275
36,013
-
(5,173)
600,275
-
Factory
Buildings &
Weighing Cultivation
Equipment Equipment Equipment
Rs’000
Rs’000
Rs’000
28,958
200,005
-
-
(8,718)
197,101
11,622
228,963
224,523
4,440
228,963
-
-
-
224,821
12,964
-
(8,822)
220,381
4,440
Transport
Equipment
Rs’000
45,344
50,120
-
-
(76)
31,623
18,573
95,464
95,464
-
95,464
-
-
-
83,160
12,447
-
(143)
83,160
-
Residential
Buildings &
Welfare
Equipment
Rs’000
873,944
531,195
(12)
(2)
(798)
457,973
74,034
1,405,139
1,383,985
21,154
1,405,139
-
68,157
(301)
1,315,259
23,494
(13)
(1,457)
1,294,105
21,154
Other
Buildings,
Farming
Equipment
& Structures
Rs’000
209,427
17,916
-
-
-
16,625
1,291
227,343
227,343
-
227,343
-
-
-
227,343
-
-
-
227,343
-
Golf
Course
and
Infrastructure
Rs’000
88,185
-
-
-
-
-
-
88,185
88,185
-
88,185
-
-
-
-
88,185
-
-
-
-
Work
in
progress
Rs’000
9,238,412
1,806,078
(12)
(2)
(14,765)
1,664,949
155,908
11,044,490
3,378,659
7,665,831
11,044,490
(43,412)
90,280
(301)
10,817,547
195,984
(13)
(15,595)
3,108,304
7,709,243
Total
Rs’000
5
(iii)Additions include Rs.3,847,000 (2014:Rs.nil) of assets acquired under finance leases.
(iv)Lease assets included in property, plant and equipment:
Transport Equipment
2015
Rs’000
2014
Rs’000
Cost
Accumulated depreciation
3,874
(123)
-
Net book amount
3,751
-
(v)Freehold land of the Group have been valued at their open market value on June 30, 2006 by JPW International Ltd
(Property Surveyor). The valuation was computed by reference to market prices for similar properties.
Factory buildings and equipment, weighing equipment and transport equipment of a subsidiary, were valued by the
directors on a replacement cost basis using indices provided by the Mauritius Sugar Authority. Revaluation of the said
assets were made on an annual basis until December 31, 2004.
Details of the Group’s property, plant and equipment measured at fair value and information about the fair value hierarchy
as at June 30, 2015 are as follows:
2015
2014
Level 2
Rs’000
Level 3
Rs’000
Freehold land
6,999,051
Improvement to land
-
Factory buildings and equipment
-
Weighing equipment
-
Transport equipment
-
Other buildings, farming equipment and structures
-
-
4,000
373,029
4,721
4,440
29,162
7,262,487
-
-
-
-
-
373,029
4,721
4,440
21,154
415,352
7,262,487
403,344
Total
6,999,051
Level 2Level 3
Rs’000
Rs’000
The revaluation surplus net of deferred income taxes was credited to revaluation surplus in shareholders’ equity.
As the land of the company has been valued using observable market data but there is no active market, it is within
level 2 of the fair value hierarchy, while the factory buildings and equipment, weighing equipment, transport equipment
and other buildings, farming equipment and structures are within level 3 of the fair value hierachy as they are based on
unobservable inputs.
The fair value of the freehold land was derived using the sales comparison approach in 2006. Sales prices of comparable
land in close proximity are adjusted for differences in key attributes such as property size. The most significant input into
this valuation approach is price per square metre.
The fair values of the factory buildings and equipment, weighing equipment, transport equipment and other buildings,
farming equipment and structures were determined on the basis of the costs from prior transactions, as adjusted on an
annual basis up to December 31, 2004 using indices provided by the Mauritius Sugar Authority and on the basis of the
estimated useful life of each asset. The fair values reflect the cost of a market participant to construct or acquire assets of
comparable utility and age, adjusted for obsolescence.
The indices provided by the Mauritius Sugar Authority is the most significant unobservable inputs used for the above
valuation.
Significant increases/(decreases) in the above estimated range of unobservable inputs in isolation would result in a
significant (lower)/higher fair value.
There were no movement in the opening balance and closing balance of the property, plant and equipment categorised
within level 3 of the fair value hierarchy during the year.
There has been no change to the valuation technique during the year.
There were no transfers between levels 2 and 3 during the year.
5
(vi)If the property, plant and equipment were stated on the historical cost basis the amounts would be as follows:
At June 30, 2015
Cost
Net book value
At June 30, 2014
Cost
Net book value
Land
Rs’000
Factory
Buildings &
Equipment
Rs’000
Weighing
Equipment
Rs’000
347,736
-
436,243
(295,771)
3,110
(1,897)
347,736
140,472
1,213
550,425
-
436,243
(273,915)
3,110
(1,819)
550,425
162,328
1,291
Transport
Equipment
Rs’000
5,828
(5,828)
-
5,828
(5,828)
-
Other
Buildings
Rs’000
Total
Rs’000
18,804
(15,785)
811,721
(319,281)
3,019
492,440
18,804
(14,820)
1,014,410
(296,382)
3,984
718,028
(vii)The above property, plant and equipment have been pledged as security for borrowings.
(viii)Depreciation charge has been charged in operating expenses.
-
111
111
-
111
6,611,020
39,391
6,571,629
6,611,020
At June 30, 2015
- Cost
- Valuation
-
At June 30, 2015
NET BOOK VALUE
At June 30, 2015
6,611,020
-
-
-
-
At July 1, 2014
Charge for the year
Impairment loss
11
100
100
-
-
-
-
-
DEPRECIATION
-
-
-
111
-
-
6,984,116
Additions
-
Disposals
(284,800)
Transfer from investment
property (note 6)
19,000
(107,296)
-
187,523
13,668
12,657
1,011
-
-
201,191
201,191
-
201,191
201,191
-
-
111
-
201,191
-
Improvement
to land
Rs’000
39,391
6,944,725
At July 1, 2014
- Cost
- Valuation
(i) COST AND VALUATION
Freehold Leasehold
Land
Land
Rs’000
Rs’000
(b) The Holding Company
5
16,788
43,695
42,908
787
-
-
60,483
60,483
-
60,483
-
-
-
60,483
-
-
60,483
-
Factory
Equipment
Rs’000
376
943
911
32
-
-
1,319
1,319
-
1,319
-
-
-
1,319
-
-
1,319
-
Weighing
Equipment
Rs’000
89,301
545,922
530,286
20,896
(5,260)
-
635,223
635,223
-
635,223
-
-
-
632,391
8,092
(5,260)
632,391
-
Cultivation
Equipment
Rs’000
22,863
171,261
181,070
7,648
(17,457)
-
194,124
194,124
-
194,124
-
-
-
206,582
5,798
(18,256)
206,582
-
39,808
18,256
49,193
9,059
(39,996)
-
58,064
58,064
-
58,064
5,616
-
-
101,678
5,490
(54,720)
101,678
-
Residential
Buildings &
Transport
Welfare
Equipment Equipment
Rs’000
Rs’000
365,611
380,537
367,460
28,656
(33,589)
18,010
746,148
746,148
-
746,148
26,661
-
21,243
727,644
86,980
(116,380)
727,644
-
Other
Buildings
and
structures
Rs’000
7,333,301
1,174,382
1,184,585
68,089
(96,302)
18,010
8,507,683
1,936,054
6,571,629
8,507,683
32,277
(107,296)
40,243
8,915,515
106,360
(479,416)
1,970,790
6,944,725
Total
Rs’000
22,123
-
-
-
111
111
-
111
6,984,116
39,391
6,944,725
6,984,116
NET BOOK VALUE
At June 30, 2014
6,984,116
-
At June 30, 2014
11
100
-
-
100
-
-
-
-
-
At July 1, 2013
Charge for the year
property (note 6)
DEPRECIATION
188,534
12,657
-
10,777
1,880
-
201,191
201,191
-
201,191
-
-
At June 30, 2014
- Cost
- Valuation
179,068
-
-
111
-
-
7,027,528
Additions
-
Disposals
-
property (note 6)
-
-
(43,412)
179,068
-
Improvement
to land
Rs’000
111
-
Freehold Leasehold
Land
Land
Rs’000
Rs’000
39,391
6,988,137
At July 1, 2013
- Cost
- Valuation
(i) COST AND VALUATION
(b) The Holding Company (continued)
5
17,575
42,908
-
42,090
818
-
60,483
60,483
-
60,483
-
-
-
60,483
-
-
60,483
-
Factory
Equipment
Rs’000
408
911
-
879
32
-
1,319
1,319
-
1,319
-
-
-
1,319
-
-
1,319
-
Weighing
Equipment
Rs’000
102,105
530,286
-
513,880
21,579
(5,173)
632,391
632,391
-
632,391
-
-
-
601,551
36,013
(5,173)
601,551
-
Cultivation
Equipment
Rs’000
25,512
181,070
-
177,437
11,000
(7,367)
206,582
206,582
-
206,582
-
-
-
201,127
12,926
(7,471)
201,127
-
52,485
49,193
-
31,674
17,595
(76)
101,678
101,678
-
101,678
-
-
-
89,984
11,837
(143)
89,984
-
Residential
Buildings &
Transport
Welfare
Equipment Equipment
Rs’000
Rs’000
360,184
367,460
(598)
328,171
40,685
(798)
727,644
727,644
-
727,644
-
68,157
(12,818)
658,934
14,828
(1,457)
658,934
-
Other
Buildings
and
structures
Rs’000
7,730,930
1,184,585
(598)
1,105,008
93,589
(13,414)
8,915,515
1,970,790
6,944,725
8,915,515
(43,412)
90,280
(12,818)
8,820,105
75,604
(14,244)
1,831,968
6,988,137
Total
Rs’000
5
(b) The Holding Company (continued)
(iii)Additions include Rs.3,847,000 (2014:Rs.nil) of assets acquired under finance leases.
(iv)Lease assets included in property, plant and equipment:
Transport Equipment
2015
Rs’000
2014
Rs’000
Cost
3,874
(123)
-
Net book amount
3,751
-
(v)Freehold land of the holding company have been valued at their open market value on June 30, 2006 by JPW International
Ltd (Property Surveyor). The valuation was computed by reference to market prices for similar properties.
Details of the Company’s property, plant and equipment measured at fair value and information about the fair value
hierarchy as at June 30, 2015 are as follows:
Level 2
Level 2
2015
2014
Rs’000
Rs’000
Freehold land
6,571,629
6,944,725
As the land of the company has been valued using observable market data but there is no active market, it is within level
2 of the fair value hierarchy.
The fair value of the freehold land was derived using the sales comparison approach in 2006. Sales prices of comparable
land in close proximity are adjusted for differences in key attributes such as property size. The most significant input into
this valuation approach is price per square metre.
(vi)If the property, plant and equipment were stated on the historical cost basis the amounts would be as follows:
Land
Net book value at June 30, 2015 and June 30, 2014
2015
Rs’000
2014
Rs’000
302,000
303,035
(vii)Above property, plant and equipment have been pledged as security for borrowings.
(viii)Depreciation charge has been charged in operating expenses.
(ix)If an item of owner-occupied property becomes an investment property because its use has changed, any difference
resulting between the carrying amount and the fair value of this item at the date of transfer is treated in the same way
as a revaluation under IAS 16. Any resulting increase in the carrying amount of the property is recognised in profit or loss
to the extent that it reverses a previous impairment loss, with any remaining increase recognised in other comprehensive
income and increase directly to equity in revaluation surplus within equity. Any resulting decrease in the carrying amount
of the property is initially charged in other comprehensive income against any previously recognised revaluation surplus,
with any remaining decrease charged to profit or loss.
6
INVESTMENT PROPERTIES
The Holding Company
2015
Rs’000
2014
Rs’000
1,260,880
67,275
(90,490)
1,190,442
8,888
-
2015
Rs’000
2014
Rs’000
VALUATION
At July 1,
Additions
Disposal
Transfer from land development and
expenditure (note 11(a))
Transfer to property, plant and
equipment (note 5 (b))
Transfer from property, plant and
Decrease in fair value
The Group
At June 30,
262,663
68,166
(40,243)
102,269
(1,753)
1,560,601
-
289
(6,905)
1,260,880
547,146
-
(90,490)
473,965
-
262,663
68,166
(40,243)
-
(7,230)
671,846
12,220
(7,205)
547,146
(a)Investment properties, held to earn rentals/or for capital appreciation or both and not occupied by the Group are carried
at fair value. Investment properties consist of freehold land and buildings.
Freehold land of the group and the holding company classified as investment properties have been valued at their open
market value on June 30, 2006 by JPW International Ltd (Property Surveyor). Buildings classified as investment properties
have been valued at cost less accumulated depreciation. The directors are of opinion that the carrying amounts of the
investment properties represent their fair value.
(b) Gains and losses arising from changes in the fair value of investment properties are included in profit or loss for the period
in which they arise.
(c) Rental income from the investment properties amounted to Rs.102,047,000 (2014: Rs.84,269,000) for the group and Rs.
34,128,000 (2014: Rs.29,916,000) for the company (notes 25 & 26).
Direct operating expenses in respect of investment properties amounted to Rs.28,759,000 (2014: Rs.34,569,000) for the
group and nil for the company.
(d)The above investment properties have been pledged as security for borrowings.
(e) Details of the Group’s investment properties measured at fair value and information about the fair value hierarchy as at
June 30, 2015 are as follows:
2015
Freehold land
Buildings
2014
Freehold land
Buildings
The Group
The Holding Company
Level 2
Rs’000
Level 3
Rs’000
Level 2
Rs’000
Level 3
Rs’000
467,276
-
-
1,093,325
311,244
-
360,602
The Group
The Holding Company
Level 2
Rs’000
Level 3
Rs’000
Level 2
Rs’000
Level 3
Rs’000
467,276
-
-
793,604
311,244
-
235,902
The fair value of the freehold land was derived using the sales comparison approach. Sales prices of comparable land in
close proximity are adjusted for differences in key attributes such as property size. The most significant input into this
valuation approach is price per square metre.
The fair values of the buildings were determined on the basis of the costs from prior transactions and their respective
estimated useful lives. The fair values reflect the cost of a market participant to construct assets of comparable utility and
age, adjusted for obsolescence.
6
INVESTMENT PROPERTIES (continued)
The most significant unobservable inputs used for the above valuation are as follows:
Description of
unobservable inputs
Unobservable
inputs
Depreciation rate
1%
Buildings
Significant increases/(decreases) in the above estimated range of unobservable inputs in isolation would result in a
significant (lower)/higher fair value.
The movement in fair value measurements of investment properties using significant unobservable inputs are as follows:
The Group
The Holding Company
Buildings
Rs’000
Buildings
Rs’000
793,604
67,275
(90,490)
235,902
(90,490)
262,663
262,663
(40,243)
(40,243)
102,269
(1,753)
(7,230)
At July 1, 2014
Additions
Disposal
Transfer from land development and
expenditure (note 11(a))
Transfer to property, plant and
Decrease in fair value
At June 30, 2015
1,093,325
360,602
There has been no change to the valuation technique during the year.
There were no transfers between levels 2 and 3 during the year.
7
INTANGIBLE ASSETS
a) The Group
COST
At July 1,
Additions
Impairment loss (note 41(a)(ii))
Disposals
At June 30,
AMORTISATION
At July 1,
Charge for the year
2015
Computer
Software
Rs’000
31,640
14,967
-
(13,483)
2014
Goodwill
Rs’000
-
4,044
(4,044)
-
Total
Rs’000
Computer
Software
Rs’000
31,640
19,011
(4,044)
(13,483)
22,471
9,169
-
33,124
-
33,124
31,640
14,500
2,310
(5,365)
-
-
-
14,500
2,310
(5,365)
12,703
1,797
-
At June 30,
11,445
-
11,445
14,500
NET BOOK VALUES
At June 30,
21,679
-
21,679
17,140
7
INTANGIBLE ASSETS (continued)
Computer software
COST
At July 1,
Additions
Disposals
At June 30,
AMORTISATION
At July 1,
Charge for the year
At June 30,
NET BOOK VALUES
At June 30,
2015
Rs’000
2014
Rs’000
31,247
2,788
(13,483)
22,106
9,141
-
20,552
31,247
14,269
389
(5,365)
12,578
1,691
-
9,293
14,269
11,259
16,978
(c)Amortisation charge has been charged in operating expenses.
(d)The above intangible assets have been pledged as security for borrowings.
(e)Impairment test for goodwill: goodwill is allocated to the Company’s Cash-Generating Units (CGU’s) identified according to
the country of incorporation and business segment.
8
INVESTMENTS IN SUBSIDIARIES
Unquoted
At July 1,
Additions (note (i))
Transfer to investments in associated companies (notes (ii) and 9)
Acquisition of non-controlling interests (note 41 (d))
Acquisition of investments (note 41(a))
Impairment (note (iii))
Disposals (note 41(c))
At June 30,
The Holding Company
2015
Rs’000
2014
Rs’000
820,119
1,914,161
(1,643)
-
18,000
(604,044)
(169,446)
807,352
50
12,717
-
1,977,147
820,119
Note (i): Additional investments made were as follows:
The Medine Sugar Milling Company Limited
Tamarina Golf Estate Company Limited
Tamarina Golf Club Limited
TGE Management Services Limited
Clarens Fields Ltd
Broll Property and Facilitiy Management Limited
Medine Rum Limited
Tamarina Beach Club Hotel Ltd
Casela Limited
2015
Rs’000
2014
Rs’000
57,518
19,975
550,000
44,975
32,500
2,618
5,500
140,000
1,061,000
25
25
25
25
25
-
1,914,161
50
Note (ii): In 2015, the percentage shareholding in Broll Property and Facility Management Limited has decreased from 100% to
50%. Hence, Broll Property and Facility Management Limited is now considered as an associate instead of a subsidiary company.
Note (iii): The impairment assessment of each cash generating unit is based mainly on the projected discounted future cash flows
and also takes into account the difficult economic environment.
80%
100%
100%
100%
100%
100%
100%
56.9%
100%
100%
100%
100%
-
-
-
-
-
80%
100%
100%
100%
100%
-
100%
56.9%
100%
100%
50%
100%
100%
45%
100%
100%
100%
160,000
20,000
650,000
45,000
320,000
-
127,500
119,931
4,000
52,500
-
1,061,025
18,000
-
25
25
25
2,580,191
-
-
55%
-
-
-
-
-
-
43.1%
-
-
-
-
20%
-
28%
Though the Group holds only 45% of the share capital of Career Recruitment Solution Ltd, the directors consider Career Recruitment Solution Ltd as a subsidiary company as the Group has Board
control.
-
-
43.1%
-
-
-
20%
-
28%
Proportion of
ownership interests
held by noncontrolling interests
2015
2014
The year end of all the subsidiaries, which are incorporated in Mauritius, is June 30 except for Le Cabinet Ltd whose year end is September 30. Management accounts have been used.
72%
72%
2,160
Société ReufacLoading zone
Bambous
Shares
3,000
The Medine Sugar Milling
Company Limited
Sugar millers
BambousOrdinary Shares
200,000
Tamarina Golf Estate Company LimitedConstruction ofTamarinOrdinary Shares
20,000
luxury villas for sale
Tamarina Golf Club Limited
Golf course servicesTamarinOrdinary Shares
650,000
TGE Management Services Limited
Services ofTamarinOrdinary Shares
45,000
housekeeping and
maintenance of villas
Tamarina Beach Club Hotel LimitedHotel resortTamarinOrdinary Shares
320,000
Barachois Villas Company Limited
Property development
BarachoisOrdinary Shares
175,170
Clarens Fields Ltd
Rental of office buildings
127,500
Cascavelle Shopping Mall Limited
Rental of commercial buildingsCascavelleOrdinary Shares
214,000
Talent Solutions LtdTraining services
PierrefondsOrdinary Shares
4,000
Medine Rum Limited
Bottling services and
52,500
holding of investment
Broll Property and Facility Management Property managementCascavelleOrdinary Shares
25
Limited
services
Casela LimitedCasela nature and leisure parkCascavelleOrdinary Shares 1,061,025
Le Cabinet LtdHunting servicesCascavelleOrdinary Shares
2,076
Career Recruitment Solution Ltd
Recruitement services
PierrefondsOrdinary Shares
25
Rental of residential propertiesCascavelleOrdinary Shares
25
Rental of educational propertiesCascavelleOrdinary Shares
25
Rental of residential propertiesCascavelleOrdinary Shares
25
% Direct
ownership
Place of
Class of
Stated
Cost
interest
Name of Company
Main business
business
shares held
Capital of investment
2015
2014
Rs’000
Rs’000
(a)The details of the subsidiaries and the % shareholding are as follows:
8 INVESTMENTS IN SUBSIDIARIES (continued)
8 INVESTMENTS IN SUBSIDIARIES (continued)
(b) Subsidiaries with material non-controlling interests
Detail of subsidiaries that have non-controlling interests that are material to the entity:
Name of company
2015
Loss allocated to
non-controlling
interests during
the period
Rs’000
Accumulated
non-controlling
interests
Rs’000
2,398
2,471
55,358
79,682
3,205
6,073
42,585
82,154
2014
(c) Summarised financial information on subsidiaries with material non-controlling interests.
(i) Summarised statement of financial position and statement of profit or loss and other comprehensive income:
Non-
Non-
Current current Current
current
Name of Company
assets assets liabilities liabilities Revenue
Rs’000 Rs’000
Rs’000
Rs’000
Rs’000
2015
Company Limited
Cascavelle Shopping
Mall Limited
Other
Total Dividend
compre-
compre-
paid to
Loss
hensive
hensive
nonfor the income for income for controlling
year
the year
the year
interests
Rs’000
Rs’000
Rs’000
Rs’000
99,990 480,622 (107,113) (196,707)
18,093 786,086 (27,344) (592,000)
194,572 (11,990)
3,947
(8,043)
-
90,944
(5,734)
-
(5,734)
-
(55,295)
189,409
(17,354)
1,329
(16,025)
-
(34,798) (588,750)
86,470
(11,615)
-
(11,615)
-
2014
Company Limited
Cascavelle Shopping
Mall Limited
85,405 289,131 (106,304)
25,422 788,695
(c) Summarised financial information on subsidiaries that have non-controlling interests that are material to the entity.
(ii) Summarised cash flow information
Name of Company
Investing
activities
Rs’000
Financing
activities
Rs’000
(6,355)
(949)
(273,232)
(589)
218,898
3,250
(5,273)
(6,769)
36,861
(6,961)
Net increase/
(decrease) in
cash and cash
equivalents
Rs’000
2015
Operating
activities
Rs’000
(60,689)
1,712
2014
(3,000)
6,200
28,588
(7,530)
The summarised financial information above is the amount before intra-group eliminations.
9 INVESTMENTS IN ASSOCIATES
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
(a)At July 1,
Addition
Transfer from investments in
subsidiaries (notes (i) and 8))
Share of dividends
Share of profit net of tax
Disposal of associates (note (ii))
Share of reserves
33,960
5,500
35,186
-
21,020
-
21,020
-
-
(10,000)
10,155
(20)
(183)
-
(8,000)
6,768
-
6
39,412
33,960
At June 30,
1,643
-
-
(20)
-
-
22,643
21,020
Note (i): In 2015, the percentage shareholding in Broll Property and Facility Management Limited has decreased from
100% to 50%. Hence, Broll Property and Facility Management Limited is now considered as an associate instead of a
subsidiary company.
Note (ii): During the year, Henrietta Energy Ltd and Roches Brunes Energy Ltd have been liquidated.
(b)The associated companies are as follows:
Place of
Class of
Name of Company
Nature of business
business
shares held
Ownership interest
and voting power
2015
2014
Safari Adventures LimitedLeisure activitiesCascavelleOrdinary shares
40% Direct
Henrietta Energy Ltd
DormantHenriettaOrdinary shares
-
Roches Brunes Energy Ltd
Dormant Roches BrunesOrdinary shares
-
The Indian Ocean Rum Production and sales of
Company Limited
premium rum
BambousOrdinary shares 50% Indirect
Broll Property and Facility
Management Limited
Property ManagementCascavelleOrdinary shares
50% Direct
Services
40% Direct
49% Direct
49% Direct
50% Indirect
100% Direct
All of the above associates are accounted using the equity method and there are no quoted market price for their shares.
The year end of all the associated companies, which are incorporated in Mauritius, is June 30.
(c) Summarised financial information in respect of each of the material associates is set out below.
Name
Non-
Current
Current
Liabilities Liabilities Revenues
Rs’000
Rs’000
Rs’000
Profit/
Other
Total Dividends
(Loss) Compre- Compre- received
for the hensive hensive
during
year income income the year
Rs’000
Rs’000 Rs’000
Rs’000
Non-
Current
Assets
Rs’000
48,371
13,452
(21,589)
(750)
75,182
35,204
18,921
631
(6,698)
(558)
17,905
(7,854)
4,802
985
(6,203)
4,040
(2,774)
31,161
12,109
(13,171)
(819)
59,107
28,633
15,780
389
(6,586)
(68)
7,934
(9,370)
2015
Safari Adventures Limited
The Indian Ocean Rum
Company Limited
Management Limited
Current
Assets
Rs’000
-
-
35,204
10,000
(365) (8,219)
-
-
(2,774)
-
-
28,633
2014
Company Limited
12
(9,358)
8,000
-
The summarised financial information above represents amounts shown in the associates’ financial statements prepared
in accordance with IFRS.
9 INVESTMENTS IN ASSOCIATES (continued)
(d) Reconciliation of the summarised financial information to the carrying amount recognised in the financial statements:
Name
2015
Management Limited
Company Limited
Total
2014
Company Limited
Total
Opening
net Issue of
assets
Share
July 1, Capital
Rs’000
Rs’000
Total
Compre-
hensive
income
Rs’000
29,280
20
20
-
-
-
-
-
9,515
11,000
(8,219)
38,835
11,000
26,945
20,647
20
20
-
-
-
28,633
-
-
18,873
-
(9,358)
39,560
-
19,275
Dividend
for the
year
Rs’000
35,204
(20)
(20)
(25,000)
-
-
Closing
net Ownership
assets
interest
Rs’000
%
Carrying
Goodwill
value
Rs’000
Rs’000
40%
49%
49%
15,793
-
-
17,471
-
-
33,264
-
50%
-
-
-
12,296
50%
6,148
-
6,148
(25,000)
51,364
21,941
17,471
39,412
(20,000)
-
-
29,280
20
20
40%
49%
49%
11,712
10
10
17,471
-
-
29,183
10
10
9,515
50%
4,757
-
4,757
16,489
17,471
33,960
-
-
-
-
(20,000)
39,484
-
-
Interest
in
associates
Rs’000
(416)
38,835
(e)Accumulated loss not recognised were as follows:
Broll Property and Facility Management Limited
2015
Rs’000
2014
Rs’000
208
-
10 INVESTMENTS IN AVAILABLE-FOR-SALE FINANCIAL ASSETS
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
73,627
-
-
19,048
69,203
80
(2,500)
6,844
73,619
-
-
19,048
69,195
80
(2,500)
6,844
At June 30,
92,675
73,627
92,667
73,619
Current
Non current
-
92,675
-
73,627
-
92,667
73,619
92,675
73,627
92,667
73,619
At July 1,
Additions
Disposals
Increase in fair value
(a)Available-for-sale financial assets are analysed as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Quoted - Listed
Quoted - DEM
Unquoted
12,331
73,785
6,559
12,201
54,867
6,559
12,331
73,785
6,551
12,201
54,867
6,551
92,675
73,627
92,667
73,619
10 INVESTMENTS IN AVAILABLE-FOR-SALE FINANCIAL ASSETS (continued)
(b) At June 30, 2015
Level 1
Rs’000
Level 3
Rs’000
Total
Rs’000
THE GROUP
86,116
6,559
92,675
THE HOLDING COMPANY
86,116
6,551
92,667
At June 30, 2014
Level 1
Rs’000
Level 3
Rs’000
Total
Rs’000
THE GROUP
67,068
6,559
73,627
THE HOLDING COMPANY
67,068
6,551
73,619
(c)The fair value of listed or quoted available-for-sale financial assets is based on the Stock Exchange of Mauritius or DEM
quoted prices at the close of business at the end of the reporting period. There were no transfers between level 1 and
level 3 in the period. For fair value measurement in level 3, there were no purchase or sale in the period.
In assessing the fair value of unquoted available-for-sale financial assets, the group uses mainly the cost basis.
Analysis of unquoted investments:
Cost basis
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
6,559
6,559
6,551
6,551
The directors are of opinion that the carrying amounts of the investments in securities represent their fair value.
(d)Investment in Fondation Medine Horizons
Details of the investment are as follows:
Country of
Class of
Incorporation
shares held
Stated
Capital
Rs’000
Nominal value
of investment
Rs’000
Fondation Medine HorizonsMauritiusOrdinary
25
25
% Holding
2015 & 2014
100%
Though Medine Limited holds 100% of the share capital of Fondation Medine Horizons, Fondation Medine Horizons is not
considered as a subsidiary company of Medine Limited, as no portion of the income, property and funds of Fondation
Medine Horizons shall be paid or transferred to Medine Limited.
(e)None of the financial assets are either past due or impaired.
(f)All investments are denominated in Rupee.
11 DEFERRED EXPENDITURE
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Land development and expenditure (note 11(a))
Voluntary Retirement Scheme 2 (note 11(b))
Milling rights (note 11(c))
579,366
96,096
509
600,097
142,020
979
579,366
96,096
-
600,097
142,020
-
675,971
743,096
675,462
742,117
11 DEFERRED EXPENDITURE (continued)
(a) Land development and expenditure
At July 1,
Expenditure for the year
equipment (note 5)
Transfer to profit or loss upon sale of land
Transfer to property, plant and equipment (note 5)
Transfer to investment properties (note 6)
At June 30,
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
600,097
226,245
623,996
252,770
600,097
226,245
623,996
252,770
107,296
(59,332)
(32,277)
(262,663)
43,412
(161,635)
(90,280)
(68,166)
107,296
(59,332)
(32,277)
(262,663)
43,412
(161,635)
(90,280)
(68,166)
579,366
600,097
579,366
600,097
(b) Voluntary Retirement Scheme 2 & 3
COST
At July 1,
Cost of land and infrastructure
At June 30,
AMORTISATION
At July 1,
Amortisation for the year
At June 30,
NET BOOK VALUE
At June 30,
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
358,633
160
357,730
903
343,875
160
342,972
903
358,793
358,633
344,035
343,875
216,613
46,084
169,766
46,847
201,855
46,084
155,008
46,847
262,697
216,613
247,939
201,855
96,096
142,020
96,096
142,020
Estimates regarding the costs of land and infrastructures to be distributed to the relevant employees but not yet disbursed
are carried as payables.
(c) Milling Rights
The Group
2015
Rs’000
2014
Rs’000
COST
At July 1, & June 30,
3,286
3,286
AMORTISATION
At July 1,
Amortisation for the year (note 27)
2,307
470
1,837
470
2,777
2,307
509
979
At June 30,
NET DEFERRED EXPENDITURE
At June 30,
The deferred expenditure relates to the compensation paid to Mon Desert Alma Sugar Milling Co. Ltd in respect of the
funding of part of the Blue Print costs of the said company, and is released to profit or loss over eight years.
12 BIOLOGICAL ASSETS
The Group and The Holding Company
2015
Rs’000
2014
Rs’000
Non-current
Bearer biological assets
83,527
88,494
Consumable biological assets
12,111
11,859
95,638
100,353
Consumable biological assets
180,516
11,141
213,121
10,037
191,657
223,158
287,295
323,511
Current
Total
(a)The movements in biological assets are as follows:
Sugar cane
plantations
Rs’000
Standing sugar
cane crop
Rs’000
Other crops
and plants
Rs’000
Total
Rs’000
88,494
19,011
213,121
-
21,896
3,825
323,511
22,836
(23,978)
-
-
-
(213,121)
180,516
-
(11,156)
8,687
(23,978)
(224,277)
189,203
83,527
180,516
23,252
287,295
83,527
-
-
180,516
12,111
11,141
95,638
191,657
83,527
180,516
23,252
287,295
At July 1, 2014
(Decrease)/Increase in fair value
- Amortisation charge
- Due to harvest and sales
- Due to biological transformation
At June 30, 2015
Non-current
Current
Total
At July 1, 2013
(Decrease)/Increase in fair value
- Amortisation charge
- Due to harvest and sales
- Due to biological transformation
At June 30, 2014
Non-current
Current
Total
Sugar cane
plantations
Rs’000
Standing sugar
cane crop
Rs’000
Other crops
and plants
Rs’000
Total
Rs’000
100,351
14,660
278,747
-
38,384
7,497
417,482
22,157
(26,517)
-
-
-
(278,747)
213,121
-
(31,115)
7,130
(26,517)
(309,862)
220,251
88,494
213,121
21,896
323,511
88,494
-
-
213,121
11,859
10,037
100,353
223,158
88,494
213,121
21,896
323,511
12 BIOLOGICAL ASSETS (continued)
2015
2014
(b)Number of hectares of sugar cane plantations at year end
3,657
3,514
307,316
294,188
Tonnage of sugar cane harvested during the year
(c) Principal assumptions used are:
Expected price of sugar (ton)
Discount rate
Expected extraction rate (% sugar produced to sugar cane crushed)
Expected sugar cane yield (ton of sugar cane harvested per hectare)
Rs
2015
2014
12,500
4.90%
11.00%
89.40
14,000
4.90%
11.00%
86.31
Biological assets have been pledged as security for borrowings.
(d) Details of the Group’s biological assets measured at fair value and information about the fair value hierarchy as at June 30,
2015 are as follows:
Level 3
Rs’000
83,527
180,516
23,252
Total
287,295
The fair value measurements have been categorised as Level 3 fair values based on unobservable inputs used in the
valuation techniques used.
At June 30, 2015, the most significant unobservable inputs used for the valuation are as follows:
Description of unobservable inputs
Sugar cane plantationsAmortisation period
Unobservable
inputs
8 years
Sugar cane yield - tons of sugar
cane harvested per hectare
89.40 tons
Extraction rate - % sugar
produced to sugar cane crushed
11%
Price of sugar per ton
Rs.12,500
Discount rate
4.9%
The higher the sugar cane yield, the extraction rate and the price of sugar, the higher the fair value.
The higher the discount rate, the lower the fair value.
(e)The group is exposed to the following risks relating to its sugar cane plantations:
(i) Adverse climatic conditions such as droughts, floods and disease outbreaks as the sugar cane plantations are mainly
located in the western region of the island.
(ii) Fluctuation in the price of sugar, the movement in exchange rate and fluctuation in the volume of sugar produced and
sold. The group has short-term contract in place for supply of sugar to its major customer.
(iii) The seasonal nature of the sugar cane farming business requires a high level of cash flow during the inter crop season.
The group actively manages the working capital requirements and has secured sufficient credit facilities to meet the
cash flow requirements.
13 DEFERRED INCOME TAXES
Deferred income taxes are calculated on all temporary differences under the liability method at 15% (2014: 15%).
(a)There is a legally enforceable right to offset current tax assets against current tax liabilities and deferred income tax assets
and liabilities when the income taxes relate to the same fiscal authority on the same entity.
The following amounts are shown in the statements of financial position:
The Group
2015
Rs’000
2014
Rs’000
(7,542)
13,471
5,929
Deferred tax assets
Deferred tax liabilities
The Holding Company
2015
Rs’000
2014
Rs’000
(16,325)
11,450
-
-
-
(4,875)
-
-
(b)The movement on the deferred income tax account is as follows:
The Group
2015
Rs’000
2014
Rs’000
At July 1,
Credited to profit or loss (note 35)
Credited to other comprehensive income (note 38)
Consolidation adjusment (note (i))
(4,875)
774
720
9,310
5,929
At June 30,
The Holding Company
2015
Rs’000
2014
Rs’000
1,765
(6,875)
235
-
-
-
-
-
-
(4,875)
-
-
Note (i): The consolidation adjustment is in respect of the disposal of the subsidiary company, Barachois Villas Company
Limited and the decrease in the shareholding in Broll Property and Facility Management Limited from 100% to 50%.
Hence, Broll Property and Facility Management Limited is now considered as an associate instead of a subsidiary company.
(c) Deferred tax assets and liabilities, deferred tax charge/(credit) to profit or loss and deferred tax charge/(credit) to other
comprehensive income, without taking into consideration the offsetting of balances within the same fiscal authority on
the same entity, are attributable to the following items.
Credited
As atConsolidation
to otherCredited
As at
July 1,
adjustment
comprehensive
to profit
June 30,
2014
(note (i))
income
or loss
2015
The Group
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Deferred income tax liabilities
Accelerated tax depreciation
Asset revaluations
12,860
11,666
(49)
-
-
-
2,590
-
15,401
11,666
24,526
(49)
-
2,590
27,067
Deferred income tax assets
Tax losses
(24,118)
(5,283)
9,359
-
-
720
(1,128)
(688)
(15,887)
(5,251)
(29,401)
9,359
720
(1,816)
(21,138)
(4,875)
9,310
720
Net deferred income tax liabilities
774
5,929
13 DEFERRED INCOME TAXES (continued)
Credited
As at
to otherCredited
July 1,
comprehensive
to profit
2013
income
or loss
The Group
Rs’000
Rs’000
Rs’000
As at
June 30,
2014
Rs’000
Deferred income tax liabilities
Accelerated tax depreciation
Asset revaluations
15,030
11,666
-
-
(2,170)
-
12,860
11,666
26,696
-
(2,170)
24,526
Deferred income tax assets
Tax losses
(19,433)
(5,498)
-
235
(4,685)
(20)
(24,118)
(5,283)
(24,931)
235
(4,705)
(29,401)
1,765
235
(6,875)
(4,875)
Net deferred income tax liabilities
(d) Deferred income tax assets are recognised only to the extent that the related tax benefit is probable. The Group and
the Company have respectively a net deferred tax assets of Rs.151,403,000 (2014: Rs.133,940,000) and Rs. 93,223,000
(2014:Rs.83,066,000) to carry forward against future taxable income which have not been recognised in these accounts
due to uncertainty of their recoverability.
The net deferred tax assets arises as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Tax losses not recognised
583,558
541,817
293,843
245,852
Timing differences not provided for
- Retirement benefit obligations
- Accelerated tax depreciation
168,376
257,422
163,193
187,924
164,838
162,804
160,611
147,312
425,798
351,117
327,642
307,923
1,009,356
892,934
621,485
553,775
151,403
133,940
93,223
83,066
Total tax losses and timing differences
Net deferred tax assets at 15%
Tax losses expire on a rolling basis over 5 years.
14 INVENTORIES
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Spare parts (realisable value)
Fertilizers and herbicides (cost)
General goods and consumables (cost)
Aviaries (cost)
Others (realisable value)
12,957
9,378
14,912
-
6,801
19,491
8,508
13,197
8,245
7,133
353
9,378
2,434
-
438
1,039
8,508
2,894
8,245
2,110
44,048
56,574
12,603
22,796
(a)Inventories have been pledged as security for borrowings.
(b)The cost of inventories recognised as expense and included in operating expenses amounted to Rs.154,946,000 (2014:
Rs.133,520,000) for the group and Rs. 55,821,000 (2014: Rs.58,356,000) for the company.
14 INVENTORIES (continued)
(c)Inventories are stated at net realisable value as follows:
At cost
Fall in value
At net realisable value
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
56,905
(12,857)
69,431
(12,857)
22,460
(9,857)
32,653
(9,857)
44,048
56,574
12,603
22,796
(d)There were no additional fall in value in 2014 and 2015.
15 TRADE AND OTHER RECEIVABLES
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Trade receivables - sugar and molasses
Trade receivables - others
61,806
103,144
49,824
92,116
37,875
19,001
34,422
16,723
Trade receivables - total
Provision for receivable impairment
164,950
(20,652)
141,940
(19,107)
56,876
(7,347)
51,145
(7,347)
Trade receivables - net
Debtors land transactions
Prepayments
Amount receivables from related
companies (note (d))
Dividend receivable from associate
Other receivables (note (e))
144,298
2,513
34,227
122,833
2,588
34,071
49,529
2,513
9,950
43,798
2,588
10,102
23,474
6,000
111,617
105,465
4,000
102,235
23,049
6,000
26,594
105,465
4,000
49,250
322,129
371,192
117,635
215,203
(a)The carrying amounts of trade and other receivables approximate their fair value.
(b)As at June 30, 2015, trade receivables of Rs.22,236,000 (2014: Rs.22,195,000) and Rs. 7,347,000 (2014: Rs.7,347,000)
were impaired for the Group and the Company respectively. The amount of provision for impairment for the Group and
for the Company was Rs.20,652,000 (2014: Rs.19,107,000) and Rs. 7,347,000 (2014: Rs.7,347,000) respectively. The
individually impaired receivables mainly relate to customers, which are in unexpectedly difficult economic situations. It
was assessed that a portion of these receivables is expected to be recovered.
The ageing of these receivables is as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
3 to 6 months
Over 6 months
1,098
21,138
931
21,264
-
7,347
7,347
22,236
22,195
7,347
7,347
15 TRADE AND OTHER RECEIVABLES (continued)
(c)As at June 30, 2015, trade receivables of Rs. 37,611,000 (2014: Rs.44,474,000) for the Group and Rs.27,210,000 (2014:
Rs.26,928,000) for the Company were past due but not impaired.
These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of
these trade receivables is as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
3 to 6 months
Over 6 months
3,176
34,435
13,495
30,979
-
27,210
9,264
17,664
37,611
44,474
27,210
26,928
(d)Amount receivables from related companies is analysed as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Other receivables - Gross
Less: provision for receivable impairment
23,474
-
125,465
(20,000)
23,049
-
125,465
(20,000)
Other receivables - Net
23,474
105,465
23,049
105,465
As at June 30, 2015, Amount receivables from related companies of Rs.nil (2014: Rs20,000,000) were impaired for the
Group and the Company. It was assessed that no portion of these receivables is expected to be recovered. The amount of
provision for impairment for the Group and the Company was Rs.nil (2014: Rs.20,000,000).
(e)Other receivables is analysed as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Other receivables - Gross
111,786
(169)
102,515
(280)
26,594
-
49,250
-
Other receivables - Net
111,617
102,235
26,594
49,250
As at June 30, 2015, other receivables of Rs.169,000 (2014: Rs.280,000) were impaired for the Group. It was assessed that
no portion of these receivables is expected to be recovered. The amount of provision for impairment for the Group was
Rs. 169,000 (2014: Rs.280,000).
(f)The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Rupee
Euro
Pound Sterling
US Dollar
274,169
47,228
432
300
326,950
43,588
508
146
117,635
-
-
-
215,203
-
322,129
371,192
117,635
215,203
15 TRADE AND OTHER RECEIVABLES (continued)
(g)The movement on the provision for impairment of trade receivables, amount receivables from related companies and
other receivables are as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
At July 1,
Receivables written off during the
year as uncollectible
39,387
1,434
21,386
20,569
27,347
-
8,169
20,056
(20,000)
(2,568)
(20,000)
20,821
39,387
7,347
27,347
Trade receivables
Amount receivables from related companies
Other receivables
20,652
-
169
19,107
20,000
280
7,347
-
-
7,347
20,000
-
20,821
39,387
7,347
27,347
At June 30,
Analysed as follows:
(878)
(h)The other classes within trade and other receivables do not contain impaired assets.
(i)The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above
except for the deposits and bank guarantees received from tenants covering rental charges for three months. The Group
has no other collateral as security.
16 AMOUNT DUE FROM GROUP COMPANIES
The Holding Company
2015
Rs’000
2014
Rs’000
Current account with subsidiaries - Gross
336,088
-
513,022
(15,000)
Current account with subsidiaries - Net
336,088
498,022
(a)The carrying amounts of amount owed by group companies approximate their fair value.
(b)There has been no additional charge for provision for receivable impairment in 2014 and 2015.
(c)The reversal of the provision for receivable impairment has been credited to other income (note 29).
17 SHARE CAPITAL
Issued and fully paid
Ordinary
shares
of Rs.10 each
Rs’000
At July 1, 2014
Conversion of shares (note (i))
At June 30, 2015
Preference
shares
of Rs.10 eachTotal
Rs’000
Rs’000
869,406
180,594
180,594
(180,594)
1,050,000
-
1,050,000
-
1,050,000
17 SHARE CAPITAL (continued)
Issued and fully paid
Ordinary
shares
of Rs.10 each
Rs’000
At July 1, 2013 & June 30, 2014
Preference
shares
of Rs.10 eachTotal
Rs’000
Rs’000
869,406
180,594
1,050,000
Note (i): The 18,059,400 existing preference shares of Rs.10.00 each in issue has been converted into ordinary shares on a
1:1 basis. The share capital which amounts to Rs.1,050,000,000 is now composed of 105,000,000 ordinary shares of Rs.10.00
each.
(a)Ordinary shares carry one vote per share and carry a right to dividends.
18 REVALUATION SURPLUS AND OTHER RESERVES
(a) The Group
Sugar
Modernisation
Millers
Fixed
and
Revaluation
Deve-
assets
agricultural Actuarial Reserves
surplus on lopment replacement diversification
loss
of
fixed assets
Fund
reserve
reserve reserve associates
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
6,278,044
Increase in fair value of available
for-sale investments (note 10)
-
Remeasurement of retirement
benefit obligations (note 38)
-
Share of reserves in associates
-
on disposal of land
(28,584)
At June 30, 2015
6,249,460
8,659
33,415
-
-
-
-
-
-
-
-
-
-
-
8,659
33,415
18,774 (146,263)
-
-
(18,312)
-
-
18,774 (164,575)
Fair
value
reserve
Rs’000
Total
Rs’000
6
27,296
6,219,931
-
19,048
19,048
-
(183)
-
-
-
(18,312)
(183)
-
(28,584)
(177) 46,344 6,191,900
Sugar
Modernisation
Millers
Fixed
and
Revaluation
Deve-
assets
agricultural Actuarial Reserves
surplus on lopment replacement diversification
loss
of
fixed assets
Fund
reserve
reserve reserve associates
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
6,317,569
-
-
Share of reserves in associates
-
on disposal of land
(39,525)
At June 30, 2014
6,278,044
18,774 (154,250)
Fair
value
reserve
Rs’000
Total
Rs’000
-
20,452
6,244,619
8,659
33,415
-
-
-
-
-
6,844
6,844
-
-
-
-
-
-
7,987
-
-
6
-
-
7,987
6
-
-
-
-
-
-
(39,525)
8,659
33,415
18,774 (146,263)
6
27,296 6,219,931
18 REVALUATION SURPLUS AND OTHER RESERVES (continued)
Modernisation
Revaluation
Profit on
Sugar
Fixed
and
surplus disposal of
Millers
assets
agricultural Actuarial
on fixed
milling Development replacement diversification
loss
assets
assets
Fund
reserve
reserve
reserve
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
6,031,971
-
-
(312,349)
At June 30, 2015
5,719,622
45,753
8,659
33,415
15,473
-
-
-
-
-
-
-
-
-
-
-
45,753
8,659
33,415
-
(131,730)
-
At June 30, 2014
6,031,971
19,048
-
15,473 (151,359)
(138,654)
Total
Rs’000
27,297 6,030,838
(19,629)
Modernisation
Revaluation
Profit on
Sugar
Fixed
and
surplus disposal of
Millers
assets
agricultural Actuarial
on fixed
milling Development replacement diversification
loss
assets
assets
Fund
reserve
reserve
reserve
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
6,071,496
-
-
(39,525)
Fair
value
reserve
Rs’000
19,048
-
(19,629)
-
(312,349)
46,345 5,717,908
Fair
value
reserve
Rs’000
Total
Rs’000
45,753
8,659
33,415
15,473
-
-
-
-
-
6,844
6,844
-
-
-
-
6,924
-
6,924
-
-
-
-
-
-
(39,525)
45,753
8,659
33,415
15,473 (131,730)
20,453 6,056,595
27,297 6,030,838
(c) Revaluation surplus on fixed assets
The revaluation surplus relates to the revaluation of property, plant and equipment.
(d) Profit on disposal of milling assets
Profit on disposal of milling assets relates to profit arising on the transfer of fixed assets to a subsidiary company “The Medine
Sugar Milling Company Limited”. As the company holds 80% of the share capital of that subsidiary company, at group level,
this profit is hence not considered as realised.
(e) Sugar millers development fund
Sugar Millers Development Fund is a reserve created for specific development project.
(f) Fixed assets replacement reserve
The fixed assets replacement reserve relates to a reserve for replacement of fixed assets.
(g) Modernisation and agricultural diversification reserve
The Modernisation and Agricultural Diversification reserve is a statutory reserve earmarked to finance both modernisation and
agricultural diversification.
(h) Fair value reserve
The fair value reserve for investment comprises the cumulative net change in fair value of available-for-sale financial assets
that has been recognised in other comprehensive income until the investments are derecognised or impaired.
(i) Actuarial gain/(loss) reserve
The actuarial gain/(loss) reserve represents the cumulative remeasurement of defined benefit obligation recognised.
(j) Reserves of associates
Reserves in associates relate to the Group’s share of the reserves of associates arising on equity accounting.
19 NON-CURRENT PAYABLE
The Group
2015
Rs’000
2014
Rs’000
1,500
2,625
1,500
2,625
The non current payables can be analysed as follows:
- Later than 1 year and not later than 5 years
- Other
4,125
4,125
1,500
2,625
1,500
2,625
4,125
4,125
Purchase of milling rights
- Planters’ funds
- Land Development Expenditure
(a)The non-current payables are interest free and unsecured.
(b)The carrying amounts of non-current payables are not materially different from their fair value.
(c )The carrying amounts of non-current payable are denominated in rupee.
20 BORROWINGS
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Bank overdrafts (note (a) and 37(b))
Bank loans (note (b))
Obligations under finance leases (note (c))
336,564
2,443,590
3,846
206,101
2,012,418
-
177,578
1,033,643
3,846
124,389
746,753
-
2,784,000
2,218,519
1,215,067
871,142
336,564
719,737
467
206,101
710,542
-
177,578
663,143
467
124,389
551,110
-
Non-current
Obligations under finance leases
Bank loans
1,056,768
916,643
841,188
675,499
3,379
1,723,853
-
1,301,876
3,379
370,500
195,643
1,727,232
1,301,876
373,879
195,643
2,784,000
2,218,519
1,215,067
871,142
Anlaysed as follows:
Current
Bank overdrafts
Bank loans
Obligations under finance leases
Total borrowings
(a) Borrowings are secured over the assets of the company.
The rates of interest on the bank loans vary between 5.65% and 13.35% for the Group and between 5.65% and 8.27% for
the Company. The rates of interest on the bank overdrafts vary between 8.375 % and 8.65% for the Group and is 7.25%
for the Company.
20 BORROWINGS (continued)
(b) Bank loans can be analysed as follows:
The Group
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
719,737
233,541
137,332
658,965
694,015
710,542
147,529
180,770
421,500
552,077
663,143
60,143
30,143
265,143
15,071
551,110
60,142
60,143
30,143
45,215
2,443,590
2,012,418
1,033,643
746,753
Repayable by instalments
- before one year
- after one year and before two years
- after two years and before three years
- after three years and before five years
- after five years
The Holding Company
(c)Finance lease liabilities - minimum lease payments:
2015
Rs’000
2014
Rs’000
Not later than one year
Later than one year and not later than two years
Later than two years and not later than three years
Later than three years and not later than five years
668
668
3,268
-
-
Future finance charges on finance leases
4,604
(758)
-
3,846
-
The present value of the finance lease liabilities may be analysed as follows:
Not later than one year
Later than one year and not later than two years
Later than two years and not later than three years
Later than three years and not later than five years
467
494
2,885
-
-
3,846
-
Present value of finance lease liabilities
Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.
The rates of interest on these leases vary between 8.5% and 10.25%.
The Group leases various assets under non-cancellable finance lease agreement. The lease terms are five years and the
ownership of the assets lie within the Group.
(d)The exposure of the Group’s borrowings to interest-rate changes and the contractual repricing dates are as follows:
The Group
At June 30, 2015
Total borrowings
6 months
Rs’000
6 -12
months
Rs’000
1 - 5
years
Rs’000
Over
5 years
Rs’000
Total
Rs’000
2,784,000
-
-
-
2,784,000
At June 30, 2014
Total borrowings
2,218,519
-
-
-
2,218,519
20 BORROWINGS (continued)
At June 30, 2015
Total borrowings
At June 30, 2014
Total borrowings
The Holding Company
6 months
or less
Rs’000
6 -12
months
Rs’000
1 - 5
years
Rs’000
Over
5 years
Rs’000
Total
Rs’000
1,215,067
-
-
-
1,215,067
871,142
-
-
-
871,142
(e)The carrying amounts of borrowings are not materially different from their fair value. The fair values are based on cash
flows discounted using a rate based on the average borrowing rate of 9.00% (2014: 9.03%) and are within level 2 of the
fair value hierarchy as the borrowing rate reflects market interest rate.
(f)The carrying amounts of the Group’s borrowings are denominated in Rupee.
21 RETIREMENT BENEFIT OBLIGATIONS
Amounts recognised in the Statements of financial position as non current liabilities
- Pension benefits (note (a))
- Other post retirement benefits (note (b))
Amounts charged to profit or loss (note 34)
- Pension benefits (note (a)(v))
- Other post retirement benefits (note (b))
Total included in Employee Benefit Expense
Amounts charged/(credited) to other comprehensive income
Remeasurement of retirement benefit obligations
recognised in other comprehensive
income (note (a) (v) and 38)
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
203,942
3,537
198,459
2,582
164,838
-
160,611
-
207,479
201,041
164,838
160,611
23,426
955
35,137
276
13,577
-
29,880
-
24,381
35,413
13,577
29,880
16,803
(8,488)
19,629
(6,924)
(a) Pension benefits
(i) Pension schemes
The company has a defined contribution scheme with the Sugar Industry Pension Fund for certain employees. This
contribution is topped up for certain employees with an insurance company so that the scheme operates as a defined
benefit one.
The Group operates a defined benefit pension. The plan is a final salary plan, which provides benefits to members in the
form of a guaranteed level of pension payable for life. The level of benefits provided depends on members’ length of
service and their salary in the final years leading up to retirement.
The assets of the fund are held independently and administered by The MCB Investment Management Co Ltd and Confident
Asset Management Ltd.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligations were carried
out at June 30, 2015 by AON Hewitt Ltd (Actuarial Valuer). The present value of the defined benefit obligations, and the
related current service cost and past service cost, were measured using the Projected Unit Credit Method.
21 RETIREMENT BENEFIT OBLIGATIONS (continued)
(ii)The amounts recognised in the Statements of financial position are as follows:
Present value of defined benefit obligations
Fair value of plan assets
Liability in the Statements of financial position
The Group
2015
Rs’000
The Holding Company
2015
Rs’000
2014
Rs’000
2014
Rs’000
797,030
(593,088)
528,783
(330,324)
658,544
(493,706)
447,040
(286,429)
203,942
198,459
164,838
160,611
(iii)The movement in the fair value of plan assets over the year is as follows:
At July 1,
Interest income
Employer contributions
Employee contributions
Transfer in/(benefits paid)
Return on plan assets excluding interest income
At June 30,
The Group
2015
Rs’000
The Holding Company
2015
Rs’000
2014
Rs’000
2014
Rs’000
330,324
39,926
34,746
3,984
160,879
23,229
291,291
21,882
28,689
3,342
(23,368)
8,488
286,429
33,193
28,979
3,592
121,737
19,776
251,440
20,415
23,169
3,089
(18,608)
6,924
593,088
330,324
493,706
286,429
(iv)The movement in the present value of defined benefit obligations over the year is as follows:
At July 1,
Current service cost
Employee contributions
Interest cost
Past service cost
Settlement gain
Transfer in/(benefits paid)
Liability experience loss
Liability loss due to change in financial
assumptions
At June 30,
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
528,783
21,022
3,984
54,321
580
(12,571)
160,879
30,641
491,790
20,353
3,342
36,666
-
-
(23,368)
-
447,040
17,331
3,592
44,575
(2,565)
(12,571)
121,737
31,045
412,264
18,044
3,089
32,251
(18,608)
-
9,391
-
8,360
-
797,030
528,783
658,544
447,040
(v)The amounts recognised in profit or loss and other comprehensive income are as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
21,022
580
(12,571)
14,395
20,353
-
-
14,784
17,331
(2,565)
(12,571)
11,382
18,044
11,836
23,426
35,137
13,577
29,880
Return on plan assets excluding interest income
(23,229)
Liability loss due to change in financial assumptions
9,391
Liability experience loss
30,641
(8,488)
-
-
(19,776)
8,360
31,045
(6,924)
-
Components of defined benefit costs recognised
in other comprehensive income
16,803
(8,488)
19,629
(6,924)
Total of defined benefit cost
40,229
26,649
33,206
22,956
Service cost:
Current service cost
Past service cost
Settlement gain
Net interest expense
Components of defined benefit costs recognised
in profit or loss
The past service cost, the service cost and the net interest expenses for the year is included in operating expenses in profit
or loss. The actuarial gain/(loss) on retirement benefit obligations is included in other comprehensive income.
(vi)The reconciliation of the net defined benefit liability in the statement of financial position is as follows:
The Group
2015
Rs’000
At July 1,
198,459
Amounts recognised in profit or loss
23,426
Amounts recognised in other comprehensive income 16,803
Employer contribution
(34,746)
At June 30,
203,942
The Holding Company
2014
Rs’000
2015
Rs’000
2014
Rs’000
200,499
35,137
(8,488)
(28,689)
160,611
13,577
19,629
(28,979)
160,824
29,880
(6,924)
(23,169)
198,459
164,838
160,611
(vii)The allocation of plan assets at the end of the reporting period for each category, are as follows:
2015
%
2014
%
Local equities
Local bonds
Property
Overseas bonds and equities
Other
32
22
-
32
14
36
19
8
24
13
Total Market value of assets
100
100
(viii)The principal actuarial assumptions used for accounting purposes are as follows:
2015
%
2014
%
7.00%
8.00%
5.50%
4.50%
6.50%
5.50%
0.00%
0.00%
7.00%
60
1.00%
0.00%
8.00%
60
23.2 years
26.2 years
23.2 years
26.2 years
Discount rate
Future salary increases:
- Staff
- Artisan Labourers
Future pension increases:
- Staff
- Artisan Labourers
Rate of medical cost increase
Average retirement age (ARA)
Average life expectancy for:
- Male at ARA
- Female at ARA
The weighted average duration of the defined benefit obligation is 12 years.
(ix)The assets of the plan are invested in bonds, equities and properties. The expected return on plan assets was determined
by considering the expected returns available on the assets underlying the current investment policy. Expected yields on
fixed interest investments are based on gross redemption yields as at the end of the reporting period. Expected returns
on equity and property investments reflect long-term real rates of return experienced in the respective markets.
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Actual return on plan assets
23,229
8,488
19,776
6,924
(x) Sensitivity analysis on Defined benefit obligation at the end of the reporting period
Increase in benefit obligation at end of period
resulting from a 1% decrease in discount rate
Decrease in benefit obligation at end of period
resulting from a 1% increase in discount rate
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
87,988
66,631
76,393
58,050
73,285
58,685
63,515
51,622
An increase/decrease of 1% in other principal actuarial assumptions would not have a material impact on defined benefit
obligations at the end of the reporting period.
The sensitivity above have been determined based on a method that extrapolates the impact on net defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The present
value of the defined benefit obligation has been calculated using the projected unit credit method.
The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely
that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
(xi)The defined benefit pension plan exposes the Group to actuarial risks, such as longevity risk, currency risk, interest rate
risks and market (investment) risk.
(xii)The funding requirements are based on the pension fund’s actuarial measurement framework set out in the funding
polices of the plan.
(xiii)The funding policy is to pay contributions to an external legal entities at the rate recommended by the entity’s actuaries.
The expected contributions to post-employment benefit plans for the year ending June 30, 2016 are Rs.38,446,000 for the
Group and Rs.30,318,000 for the Company.
(b) Other post retirement benefits
Other post retirement benefits comprise mainly of retirement gratuity payable under the Employment Rights Act 2008.
(i)Movements in the retirement gratuity are as follows:
The Group
At July 1,
Total current service cost charged in
profit or loss
At June 30,
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
2,582
2,306
-
-
955
276
-
-
3,537
2,582
-
-
(ii)It has been assumed that the rate of future salary increases will be equal to the discount rate.
(iii)The total charge was included in ‘operating expenses’.
22 TRADE AND OTHER PAYABLES
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Trade payables
Other payables and accruals
Provision for VRS cost of land
and infrastructure
Deposit on sale of land
Amount payable to related companies
Advances from related company
113,610
252,082
79,044
196,548
33,581
102,493
47,040
96,363
93,100
314,907
194,197
-
93,100
99,146
93,835
378,126
91,000
314,907
194,197
-
91,000
99,146
93,835
378,126
967,896
939,799
736,178
805,510
The carrying amounts of trade and other payables approximate their fair value.
23 AMOUNT DUE TO GROUP COMPANIES
The Holding Company
2015
Rs’000
2014
Rs’000
Current account with subsidiaries
13,978
4,845
The carrying amounts of amount owed to group companies approximate their fair value.
24 DIVIDENDS
The Holding Company
2015
Rs’000
2014
Rs’000
Amount due at July 1,
Interim
63,000
63,000
-
52,165
-
10,835
63,000
-
-
52,165
-
10,835
63,000
-
126,000
126,000
Ordinary - Re.0.60 per share proposed on December 12, 2013 and paid on
January 31, 2014
Preference - Re.0.60 per share proposed on December 12, 2013 and paid on
January 31, 2014
Ordinary - Re.0.60 per share proposed on December 11, 2014 and paid on
January 30, 2015
Final
Ordinary - Re.0.60 per share proposed on June 25, 2014 and paid on
September 15, 2014 (2014:Re.0.60)
Preference - Re.0.60 per share proposed on June 25, 2014 and paid on
September 15, 2014 (2014:Re.0.60)
Ordinary - Re.0.60 per share proposed on June 30, 2015 and payable on
September 15, 2015 (2014:Re.0.60)
Dividends paid during the year
Final - Ordinary - Re.0.60 per share proposed on June 28, 2013 and paid on
September 13, 2013
Final - Preference - Re.0.60 per share proposed on June 28, 2013 and paid on
September 13, 2013
Interim - Ordinary - Re.0.60 per share proposed on December 12, 2013 and paid on
January 31, 2014
Interim - Preference - Re.0.60 per share proposed on December 12, 2013 and paid on
January 31, 2014
Final - Ordinary - Re.0.60 per share proposed on June 25, 2014 and paid on
September 15, 2014
Final - Preference - Re.0.60 per share proposed on June 25, 2014 and paid on
September 15, 2014
Interim - Ordinary - Re.0.60 per share proposed on December 11, 2014 and paid on
January 30, 2015
Amount due at June 30,
-
(52,165)
-
(10,835)
-
(52,165)
-
(10,835)
(52,165)
-
(10,835)
-
(63,000)
-
(126,000)
(126,000)
63,000
63,000
25 TURNOVER
Sugar
Foodcrops and nursery
Casela
Forestry and sale of deer
Landscaping
Hotel
Golf
Rental income
Others
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
537,207
88,406
266,850
32,089
10,855
99,254
65,199
81,192
81,293
637,209
101,380
185,068
37,061
15,401
108,213
67,441
64,559
92,896
359,673
88,406
-
32,089
10,855
-
-
-
-
450,870
101,380
185,068
37,061
15,401
-
1,262,345
1,309,228
491,023
789,780
Except for the sale of sugar, there are no other transactions with a single external customer that accounts for 10% or more
of the Group’s total revenue.
26 OTHER OPERATING REVENUE
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Sale of stones
Rental income
Sale of electricity
IT support revenue
Rental of machinery and other services
Commission, property and assets management fees
Commission on resale of villas
Other revenues
16,557
20,855
4,795
2,255
1,484
-
1,639
13,150
20,017
19,710
3,825
291
1,987
-
581
17,418
16,557
34,128
4,795
7,700
1,484
7,235
1,639
12,683
20,017
29,916
3,825
2,301
1,987
15,450
581
15,626
60,735
63,829
86,221
89,703
27 EXPENSES BY NATURE
Depreciation (note 5)
Amortisation (note 7)
Amortisation of Milling rights (note 11(c))
Employee benefit expense (note 34)
Costs of inventories recognised as expense
Hiring of labour and agricultural equipment
Irrigation costs
Other expenses - sugar activities
Fertilizers
Other expenses - non sugar activities
Power station running costs
Utilities
Administrative expenses
Marketing and advertising expenses
Operating expenses
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
159,788
2,310
470
549,556
154,946
111,181
18,430
44,775
10,720
193,586
4,672
22,461
143,388
1,434
22,266
155,908
1,797
470
524,523
133,520
104,587
17,600
42,819
9,427
224,529
4,392
19,198
107,366
20,569
15,821
68,089
389
-
347,403
55,821
111,181
18,430
44,775
10,720
4,464
4,672
10,682
50,585
-
-
93,589
1,691
396,192
58,356
104,587
17,600
42,819
9,427
82,972
4,392
14,318
48,639
20,056
-
1,439,983
1,382,526
727,211
894,638
28 OTHER (LOSSES)/GAINS
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Net foreign exchange(losses)/gains on
operations (note 32)
(2,160)
1,028
-
-
29 OTHER INCOME
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Dividend income
Interest income
Profit on disposal of property, plant
and equipment
Corporate management fees
Profit on sale of available-for-sale investments
Reversal of impairment charge (note 16(c))
Insurance refund
Sundry income
2,175
7,511
1,058
13,110
12,175
16,578
9,058
33,886
3,824
11,501
-
-
5,839
3,280
3,062
12,631
6,852
-
-
4,244
3,582
11,501
-
15,000
-
293
2,637
12,631
6,852
280
34,130
40,957
59,129
65,344
30 PROFIT ON SALE OF LAND
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
264,146
369,728
264,146
369,728
(103,761)
(180,395)
(103,761)
(180,395)
160,385
189,333
160,385
189,333
Revenue from sale of land (note (i))
Cost of land
-
-
-
-
1,328,000
(284,800)
-
-
-
1,043,200
-
160,385
189,333
1,203,585
189,333
Revenue from sale of developed land
Cost of land and expenditure in
respect of land development
Profit from sale of developed land
Total
Note (i): Sale of land to Casela Limited, a wholly owned subsidiary of Medine Limited.
31 FINANCE COSTS - NET
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
2,233
3,886
1,231
1,776
31,076
153,573
8,910
12,262
156,659
734
21,534
60,400
-
4,368
67,151
-
Less : amounts included in the cost of
qualifying assets (note 5)
193,559
169,655
81,934
71,519
-
-
-
Interest expenses - net
187,986
169,655
81,934
71,519
(185,753)
(165,769)
(80,703)
(69,743)
Gain on exchange on financing activities (note 32)
Interest expense
- Bank overdrafts
- Bank loans repayable by instalments
- On current account with group companies
Finance costs - net
(5,573)
32 NET FOREIGN EXCHANGE GAINS
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
The exchange differences credited to
profit or loss are included as follows:
Other gains - net (note 28)
Finance costs - net (note 32)
(2,160)
2,233
1,028
3,886
-
1,231
1,776
4,914
1,231
1,776
73
33 (LOSS)/PROFIT BEFORE TAXATION
The Group
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
3,824
20,000
-
3,062
2,568
6,852
3,582
20,000
-
2,637
878
6,852
159,665
123
2,310
155,908
-
1,797
67,966
123
389
93,589
1,691
-
1,753
154,946
549,556
-
6,905
133,520
524,523
604,044
7,230
55,821
347,403
7,205
58,356
396,192
(Loss)/Profit before taxation is arrived at after:
crediting:
Profit on disposal of property, plant
and equipment
Reversal of provision for receivable impairment
Profit on sale of available-for-sale investments
and charging:
Depreciation on property, plant and equipment
- owned assets
- leased assets
Amortisation of intangible assets (note 7)
Impairment losses on investments
in subsidiaries (note 8)
Decrease in fair value of investment properties
Costs of inventories recognised as expenses
Employee benefit expense (note 34)
The Holding Company
34 EMPLOYEE BENEFIT EXPENSE
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
(a)Analysis of staff costs
Wages and salaries
Social security costs and other benefits
Pension costs (note 21)
491,099
34,076
24,381
445,869
43,241
35,413
305,071
28,755
13,577
326,501
39,811
29,880
549,556
524,523
347,403
396,192
(b)The number of employees at the end of the year was:
The Group
The Holding Company
2015
2014
2015
2014
- Production
- Administration
654
323
693
280
260
202
403
226
977
973
462
629
35 INCOME TAX
Amounts shown on the statements of p
rofit or loss and other comprehensive income are as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
-
-
-
-
Current tax on the adjusted (loss)/profit for the
year at 15% (2014: 15%)
Deferred tax charge/(credit) to
profit or loss (note 13)
774
(6,875)
-
-
Charge/ (Credit) to profit or loss
Charge to other comprehensive income
774
720
(6,875)
235
-
-
-
Total charge/(credit) for the year
1,494
(6,640)
-
-
The tax on the group’s/company’s (loss)/profit before tax differs from the theoretical amount that would arise using the
basic tax rate of the group as follows:
The Group
The Holding Company
(Loss)/Profit before tax
Tax calculated at the rate of 15% (2014: 15%)
Income not subject to tax
Excess of depreciation over
capital allowances
Other tax allowances
Expenses not deductible for tax purposes
Tax losses carried forward
Tax losses not recognised
Utilisation of tax losses
Current tax on the adjusted (loss)/profit
Deferred tax charge/(credit) to
profit or loss (note 13)
Charge/(credit) to profit or loss
Charge to other comprehensive income
Total charge/(credit) for the year
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
(84,796)
(125,591)
361,788
(12,984)
(12,719)
(25,400)
(18,839)
(32,141)
54,268
(175,074)
(1,948)
(31,602)
3,660
(7,483)
17,481
4,242
21,972
(1,753)
19,023
(1,070)
4,990
5,960
23,356
(1,279)
8,511
(7,483)
104,487
-
15,291
-
12,283
(1,028)
4,572
17,723
-
-
-
-
-
774
(6,875)
-
-
774
720
(6,875)
235
-
-
-
1,494
(6,640)
-
-
36 (LOSS)/EARNINGS PER SHARE
(Loss)/Profit attributable to owners of the parent
Number of shares in issue (‘000)
(Loss)/Earnings per share (Re.)
The Group
The Holding Company
2015
2014
2015
2014
(80,479)
(109,170)
361,788
(12,984)
105,000
105,000
105,000
105,000
(0.77)
(1.04)
3.45
(0.12)
37 CASH AND CASH EQUIVALENTS
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
(a)Cash and bank balances
16,326
12,191
5,226
8,551
(b)Cash and cash equivalents and bank overdrafts include the following for the purpose of the statement of cash flows:
The Group
2015
Rs’000
The Holding Company
2015
Rs’000
2014
Rs’000
2014
Rs’000
Cash and bank balances
Bank overdrafts (note 20)
16,326
(336,564)
12,191
(206,101)
5,226
(177,578)
8,551
(124,389)
(320,238)
(193,910)
(172,352)
(115,838)
(c) Non cash items
(i) During the year ended June 30, 2015, the shareholder’s loan of Rs.463,731,000 and the consideration for sale of land of
Rs.1,328,000,000 have been used towards the issue of ordinary share (note 8).
(ii)The principal non cash transactions are the acquisition of property, plant and equipment using finance leases.
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
Property, plant and equipment acquired (note 5)
Acquired under finance lease
816,174
(3,874)
Acquired using own fund
812,300
2015
Rs’000
2014
Rs’000
195,984
-
106,360
(3,874)
75,604
-
195,984
102,486
75,604
38 OTHER COMPREHENSIVE INCOME
(a) The Group
(i) 2015
Increase in fair value of available-for-sale
investments
(note 21 (a) (v))
Share of other comprehensive income
of associates
Retirement
benefit
obligations
Rs’000
Share of
reserves in
associates
Rs’000
Total
Rs’000
19,048
-
-
19,048
-
(16,803)
-
-
(16,803)
-
(183)
(16,803)
-
(720)
Other comprehensive income for the year 2015, net of tax
19,048
(17,523)
(183)
1,342
Other comprehensive income attributable to:
19,048
-
(18,312)
789
(183)
-
553
789
19,048
(17,523)
(183)
1,342
(183)
(183)
19,048
Income tax charge
Deferred tax on remeasurement of retirement
benefit obligations
Revaluation
surplus and
other reserves
Rs’000
-
2,062
(720)
38 OTHER COMPREHENSIVE INCOME (continued)
(a) The Group
Revaluation
surplus and
other reserves
Rs’000
Retirement
benefit
obligations
Rs’000
Share of
reserves in
associates
Rs’000
Total
Rs’000
6,844
-
-
6,844
-
-
8,488
-
-
6
8,488
6
6,844
8,488
6
15,338
(i) 2014
Increase in fair value of available-for-sale
investments
(note 21 (a) (v))
Share of other comprehensive income of associates
Income tax charge
Deferred tax on remeasurement of retirement benefit
obligations
6,844
8,253
6
15,103
Other comprehensive income attributable to:
6,844
-
7,987
266
6
-
14,837
266
6,844
8,253
6
15,103
-
(235)
-
(235)
Revaluation
surplus and
other reserves
Rs’000
Retirement
benefit
obligations
Rs’000
Total
Rs’000
19,048
-
19,048
(i) 2015
Increase in fair value of available-for-sale investments
Remeasurement of retirement benefits obligations
(note 21 (a) (v))
-
(19,629)
(19,629)
19,048
(19,629)
(581)
(ii) 2014
Increase in fair value of available-for-sale investments
Remeasurement of retirement benefits obligations (note 21 (a) (v))
6,844
-
-
6,924
6,844
6,924
6,844
6,924
13,768
39 COMMITMENTS
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Investment property
15,439
66,494
42,953
317,051
-
868
42,953
2,064
81,933
360,004
868
45,017
(a) Capital Commitments
39 COMMITMENTS (continued)
(b) Operating lease payments receivable
The future minimum lease payments receivable under non-cancellable lease which will expire on December 31, 2094 and
June 30, 2104 is as follows:
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
5,000
20,000
420,000
5,000
20,000
425,000
5,429
22,039
451,755
5,429
22,039
457,184
445,000
450,000
479,223
484,652
40 CONTINGENT LIABILITIES
(a)Corporate guarantee given for subsidiary
and other companies
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
458,646
341,646
458,646
341,646
(b)It has been agreed that the Sugar Industry will allocate through the Mauritius Sugar Producers Association, ‘‘2,000 Arpents’’
of land to the Empowerment Programme for social and infrastructural projects. The quantum of land to be granted by the
Company is 131 Arpents.
(c)Claims have been made by various persons against the Company before the Truth and Justice Commission for 2 portions
of land totalling 312 Arpents situated at “La Cantine”, Albion and at “Camp Caval” between “Ligne Berthaud” and “River
Takamaka”. The Directors strongly believe that these claims are not justified and will have no impact on the financial
statements of the Company, as the land being claimed is registered in the name of the company in full ownership.
41 BUSINESS COMBINATION
(a) Acquisition of subsidiary
(i) During the year ended June 30, 2015 the Group acquired a 100% interest in Le Cabinet Ltd for Rs.18,000,000 in cash. The
principle activities of Le Cabinet Ltd is the provision of hunting services.
(ii) Details of identifiable net assets acquired and goodwill are as follows:
2015
Rs’000
18,000
(13,956)
Purchase consideration
Fair value of equity interest in Le Cabinet Ltd
4,044
Goodwill
The goodwill arising from the aquistion is mainly attributable to the potential profitability of the acquired business in
the long term. However, because of the difficult economic environment, the goodwill has been impaired.
(iii) Recognised amounts of identifiable assets acquired and liabilies assumed
2015
Rs’000
Inventories
Cash and cash equivalents
Borrowings
12,270
2,000
164
157
(635)
13,956
41 BUSINESS COMBINATION (continued)
(iv) Net cash outflow on acquisition of subsidiary
2015
Rs’000
Purchase consideration
Less: Cash and cash equivalents balances acquired
18,000
(157)
Net cash outflow on acquisition of subsidiaries
17,843
(b) Loss on deemed disposal of investment in subsidiary
During the year ended June 30, 2015, Broll Property and Facility Management Limited, a subsidiary of Medine Limited,
issued additional shares to a third party. Consequently, the shareholding of Medine Limited in Broll Property and Facility
Management Limited has decreased from 100% to 50%. Hence, Broll Property and Facility Management Limited is now
considered as an associate instead of a subsidiary company.
The gain on deemed disposal following the issue of shares to a third party is arrived as follows:
2015
Rs’000
Non-current assets
Net current liabilities over current assets
985
(2,401)
(1,416)
Gain on deemed disposal following the issue of shares to a third party
(c) Disposal of investment in subsidiary
During the year ended June 30, 2015, the Group has disposed of its investment in Barachois Villas Company Limited
(i) Net Consideration received
Consideration received in cash and cash equivalents
Less: repayment of loans
Net consideration received
(ii) Analysis of assets and liabilities over which control was lost
Current asset
Cash and cash equivalents
Non-current assets
Deferred tax assets
Current liability
Amount payable to group company
Non-current liability
Bank loans
Net assets disposed of
(iii) Gain on disposal of subsidiary
Net consideration received
Net assets disposed of
Gain on disposal
2015
Rs’000
295,676
(131,717)
163,959
2015
Rs’000
58
233,464
8,779
(6,021)
(125,696)
110,584
2015
Rs’000
163,959
(110,584)
53,375
41 BUSINESS COMBINATION (continued)
(iv) Net cash inflow on disposal of subsidiary
2015
Rs’000
Net consideration received in cash and cash equivalents
Less: Cash and cash equivalents balances disposed of
163,959
(58)
163,901
(d) Acquisition of additional interest in a subsidiary
During the year ended June 30, 2014, the Group acquired an additional 6.8% interest in Cascavelle Shopping Mall Limited
for Rs.12,717,000 in cash, increasing its ownership from 50.1% to 56.9%. The carrying amount of Cascavelle Shopping
Mall Limited’s net assets in the consolidated financial statements on the date of the acquistion was Rs.190,569,000.
The Group recognised a decrease in non-controlling interest of Rs.12,942,000 and an increase in retained earnings of
Rs.225,000.
2014
Rs’000
Cash consideration paid to non-controlling interests
Carrying amount of the additional interest
12,717
(12,942)
Gain recognised in retained earnings within equity
225
The following summarises the effect of changes in the Group’s (parent) ownership interest in Cascavelle Shopping Mall
Limited:
2014
Rs’000
Parent’s ownership interest at begining of period
Share of comprehensive income
101,573
(6,924)
Effect of increase in parent’s ownership
94,649
12,942
Parent’s ownership interest at end of period
107,591
42 SEGMENT REPORTING
The Group’s reportable segments are strategic business units that offer different products and services. They are managed
separately because each business requires different resources and marketing strategies. There are four main reportable
segments:
- Agro - planter and miller of sugar cane for the production of sugar and by-products of sugar cane namely molasses
and bagasses, sale of electricity, production of vegetables and fruits, landscaping and nursery.
- Leisure - operates a golf course and a hotel resort, casela nature and leisure park, nature escapade and revenue from
forestry and deer farming.
- Property - land transactions, rental of office and commercial buildings and property development.
- Education - provides integrated infrastructure for tertiary education provided by specialist institution.
42 SEGMENT REPORTING (continued)
The accounting policies of the operating segments are the same as those described in the summary of significant
accounting policies. The company evaluates performance on the basis of profit or loss and account for intersegment sales
and transfers as if the sales or transfer were to third parties, that is, at current market prices.
June 30, 2015
Revenues
Agro
Rs’000
Leisure
Rs’000
732,818
486,276
20,854
-
-
14,082
(4,044)
Property Education
Rs’000
Rs’000
Others
Rs’000
Total
Rs’000
1,395,192
133,548
39,595
2,955
(25,851)
160,385
-
-
-
(20,477)
-
-
-
-
(23,383)
-
-
(3,927)
-
(118,577)
160,385
(1,753)
10,155
(4,044)
Segment result
Share of profit/(loss) in associates
Impairment of goodwill
Gain on deemed disposal of investment
in subsidiary
Gain on disposal of investment
in subsidiary
(69,720)
-
(1,753)
-
-
(Loss)/Profit before finance costs
Finance costs
(71,473)
(22,252)
30,892
(43,845)
189,325
(60,047)
(20,477)
(1,530)
(27,310)
(58,079)
100,957
(185,753)
Income tax credit/(charge)
(93,725)
2,380
(12,953)
(3,680)
129,278
593
(22,007)
(67)
(85,389)
-
(84,796)
(774)
(91,345) (16,633) 129,871
(22,074)
(85,389)
Loss attributable to:
(85,570)
(80,479)
(5,091)
Loss for the year
(85,570)
-
-
1,416
-
-
1,416
-
-
53,375
-
-
53,375
Segment assets
Associates
Unallocated assets
5,882,212 3,078,361 2,137,816
-
33,265
-
-
-
-
14,206
- 11,112,595
-
6,147
39,412
- 1,401,105 1,401,105
Total assets
5,882,212 3,111,626 2,137,816
14,206 1,407,252 12,553,112
Segment liabilities
Unallocated liabilities
471,291
-
832,230 1,168,374
-
-
8,941
-
- 1,559,135
2,480,836
1,559,135
Total liabilities
471,291
832,230 1,168,374
8,941 1,559,135
4,039,971
Other segment items
Capital expenditure
Depreciation
Amortisation
237,178
94,359
-
512,149
59,937
1,939
2,260
-
41
68,521
5,396
-
82,352
96
330
902,460
159,788
2,310
42 SEGMENT REPORTING (continued)
Agro
Rs’000
Leisure
Rs’000
794,615
426,900
117,400
Segment result
Share of profit/(loss) in associates
(112,561)
-
(1,739)
-
29,300
-
-
11,651
(Loss)/Profit before finance costs
Finance costs
(114,300)
(20,000)
Income tax credit/(charge)
June 30, 2014
Revenues
Property Education
Rs’000
Rs’000
Others
Rs’000
Total
Rs’000
31,100
3,800
1,373,815
(29,633)
189,333
(5,166)
-
(6,200)
-
-
-
(29,924)
-
-
(4,883)
(149,018)
189,333
(6,905)
6,768
40,951
(31,700)
154,534
(83,600)
(6,200)
(400)
(34,807)
(30,069)
40,178
(165,769)
(134,300)
2,045
9,251
-
70,934
5,054
(6,600)
(224)
(64,876)
-
(125,591)
6,875
(132,255)
9,251
75,988
(6,824)
(64,876)
(118,716)
Loss attributable to:
(109,170)
(9,546)
Loss for the year
(118,716)
Segment assets
Associates
Unallocated assets
5,930,077 1,779,529 2,100,691
-
29,204
-
-
-
-
Total assets
5,930,077 1,808,733 2,100,691
8,027
-
-
4,756
- 2,294,624
9,818,324
33,960
2,294,624
8,027 2,299,380 12,146,908
Segment liabilities
Unallocated liabilities
653,299
-
512,005 1,076,906
-
-
2,368
-
- 1,193,356
2,244,578
1,193,356
Total liabilities
Other segment items
Capital expenditure
Depreciation
Amortisation
653,299
512,005 1,076,906
2,368 1,193,356
3,437,934
102,372
75,305
1,067
98,400
59,268
283
12,739
13,349
-
530
473
31
-
7,513
416
214,041
155,908
1,797
(a)Other operations of the Group comprised mainly of holding of investment, training services and bottling services, which
are not of a sufficient size to be reported separately.
(b)There are no sales or other transactions between the business segments. Others represent unallocated costs and corporate
expenses. Segment assets consist primarily of property, plant and equipment, investment properties, intangible assets,
investments in associates, deferred expenditure, biological assets, inventories, receivables and operating cash, and exclude
investments in available-for-sale financial assets. Segment liabilities comprise mainly of payables, borrowings, retirement
benefit obligations and exclude items such as corporate borrowings and proposed dividend. Capital expenditure comprises
additions to property, plant and equipment and intangible assets.
The company operates only in Mauritius and all sales are made on the local market.
43 RELATED PARTY TRANSACTIONS
(a) The Group
Sales of goods or services
Purchase of goods or services
Rental income
Management fee receivable
Remuneration and benefits
Dividend receivable
Interest income
Interest expense
Amount owed to related parties
Amount owed by related parties
Advances from related parties
Associated
Companies
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
643
727
-
630
-
6,000
-
642
-
-
-
47
-
826
600
-
4,000
-
323
14,834
-
-
-
-
-
-
87,559
-
-
-
-
-
-
-
-
-
-
76,058
-
-
-
-
-
-
6,387
7,700
1,327
16,051
-
-
1,162
6,796
194,197
23,049
-
5,466
132
7,994
18,931
12,772
5,375
79,001
105,465
378,126
Directors and
Companies with
Key Management Personnel Common Shareholders
Subsidiaries
Associated
Companies
Directors and
Key Management
Personnel
Companies with
Common
Shareholders
2015
2014
2015
2014
2015
2014
2015
2014
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Rs’000
Sales of goods or services
65,340
9,746
Purchase of goods or services
11,444
1,559
Rental income
12,977 10,206
Management fee receivable
66,078 41,945
Remuneration and benefits
-
-
Dividend receivable
-
-
Interest income
9,125 27,841
Interest expense
910
375
Amount owed to related parties
13,978
4,845
Amount owed by related parties 336,088 498,022
Advances from related parties
-
-
643
727
-
630
-
6,000
-
642
-
-
-
47
-
826
600
-
4,000
-
323
14,834
-
-
-
-
-
-
63,794
-
-
-
-
-
-
-
-
-
-
62,115
-
-
-
-
-
-
5,975
1,938
1,327
16,051
-
-
1,162
6,796
194,197
23,049
-
1,095
121
7,994
18,931
12,772
5,375
79,001
105,465
378,126
(c)The above transactions have been made at arms’ length, on normal commercial terms and in the ordinary course of
business.
The amount owed to/by related parties are unsecured, carried interest rate of 4.25% and settlement occurs in cash.
There has been no guarantees provided or received for any related party payables or receivables.
For the year ended June 30, 2015, the Group and the company has not recorded any impairment of receivables (2014:
Rs.20,000,000) relating to amounts owed by related parties (note 15 (d)). This assessment is undertaken each financial
year through examining the financial position of the related party and the market in which the related party operates.
(d) KEY MANAGEMENT PERSONNEL COMPENSATION
The Group
The Holding Company
2015
Rs’000
2014
Rs’000
2015
Rs’000
2014
Rs’000
78,199
9,360
68,588 7,470 56,664 7,130 56,063
6,052
87,559
76,058 63,794 62,115
Salaries and short-term employee benefits
Post-employment benefits
Notice of Annual Meeting of Shareholders 125
Notice is hereby given that the 104th Annual Meeting of the Shareholders of the Company will be held at the Medine Agriculture’s
conference room, Bambous on Tuesday 22 December 2015 at 10.00 a.m.
Agenda
1.To receive, consider and approve the audited financial statements for the year ended 30 June 2015, the directors’ annual
report and the auditors’ report thereon.
2To reappoint Mr. Pierre Doger de Spéville as director of the Company until the next annual meeting in compliance with
section 138 (6) of the Companies Act 2001.
3.To reappoint Mr. Lajpati Gujadhur as director of the Company until the next annual meeting in compliance with section 138
(6) of the Companies Act 2001.
4To reappoint Mr. Ramapatee Gujadhur as director of the Company until the next annual meeting in compliance with
section 138 (6) of the Companies Act 2001.
5.To reappoint Mr. Jacques Li Wan Po as director of the Company until the next annual meeting in compliance with section
138 (6) of the Companies Act 2001.
6.To reappoint Mr. Gérald Lincoln as director of the Company until the next annual meeting in compliance with section 138
(6) of the Companies Act 2001.
7.To reappoint as director Mr. Thomas Doger de Spéville who was appointed by the Board on 30 June 2015 in replacement
of Mr. Alain de Ravel de L’Argentière who had resigned.
8To reappoint as director Mr. Shakil Moollan who was appointed by the Board on 30 September 2015 in replacement of
Mr. Sulliman Adam Moollan who had resigned.
9.To reappoint Messrs. BDO & Co as auditors for the financial year ending on 30 June 2016 and authorise the Board of
Directors to fix their remuneration.
A member of the Company may appoint a proxy to attend and vote at the meeting on his behalf. The instrument appointing
the proxy must be deposited at the registered office of the Company, 4 Clarens Fields Business Park, Black River Road,
Bambous 90203, not less than twenty-four hours before the meeting.
By Order of the Board
Patricia Goder
Company Secretary
07 December 2015
126
Proxy Form - Medine Limited 127
I/We (Block Capitals, please)
being a shareholder/shareholders of the above-named Company, hereby appoint
of
or failing him
of
as my/our proxy to vote for me/us and on my/our behalf at the Annual Meeting of the Shareholders of the Company to be
held on Tuesday 22 December 2015 at 10.00 a.m. and at any adjournment thereof.
Signed this
day of
2015.
Signature
Please indicate with an X in the spaces below how you wish your votes to be cast.
FOR
RESOLUTION 1
To receive, consider and approve the audited financial statements for the year ended 30 June
2015, the directors’ annual report and the auditors’ report thereon.
RESOLUTION 2
To reappoint Mr. Pierre Doger de Spéville as director of the Company until the next annual
meeting in compliance with section 138 (6) of the Companies Act 2001.
RESOLUTION 3
To reappoint Mr. Lajpati Gujadhur as director of the Company until the next annual meeting in
compliance with section 138 (6) of the Companies Act 2001.
RESOLUTION 4
To reappoint Mr. Ramapatee Gujadhur as director of the Company until the next annual meeting
in compliance with section 138 (6) of the Companies Act 2001.
RESOLUTION 5
To reappoint Mr. Jacques Li Wan Po as director of the Company until the next annual meeting in
RESOLUTION 6
To reappoint Mr. Gérald Lincoln as director of the Company until the next annual meeting in
RESOLUTION 7
To reappoint as director Mr. Thomas Doger de Spéville who was appointed by the Board on 30
June 2015 in replacement of Mr. Alain de Ravel de L’Argentière who had resigned.
RESOLUTION 8
To reappoint as director Mr. Shakil Moollan who was appointed by the Board on 30 September
2015 in replacement of Mr. Sulliman Adam Moollan who had resigned.
RESOLUTION 9
To reappoint Messrs. BDO & Co as auditors for the financial year ending on 30 June 2016 and
authorise the Board of Directors to fix their remuneration.
AGAINST
Notes
1 A member may appoint a proxy of his own choice.
2 If the appointor is a corporation, this form must be under its common seal or under the hand of some officer or attorney duly authorised
in that behalf.
3 In the case of joint holders, the signature of any one holder will be sufficient, but the names of all the joint holders should be stated.
4 If this form is returned without any indication as to how the person appointed proxy shall vote, he will exercise his discretion as to how
he votes or whether he abstains from voting.
5 To be valid, this form must be completed and deposited at the registered office of the Company, 4 Clarens Fields Business Park, Black River
Road, Bambous 90203, not less than twenty-four hours before the time fixed for holding the meeting or adjourned meeting.
128
www.medine.com
MEDINE Limited ANNUAL REPORT 2015
Medine Limited
4 Clarens Fields Business Park, Black River Road, Bambous 90203
T (230) 401 6101
F (230) 452 9600
E [email protected]
ANNUAL REPORT 2015

ANNUAL REPORt 2015

Transcription

Similar documents

AnnuAl RepoRt 2014

magical makeup brow know

Ilapak Italia Spa

vitamin powered energy - Feeling

Fall 2015 Page 2 - People`s

AVS24 2.4 GHZ Wireless Audio/Video Sender

our mojito recipe

Annual Report 2014

Diabetes, Type 1

Wash Day Peach Cobbler