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ANNUAL REPORT 2012

11th Floor, Medine Mews4 Chaussée Street, Port LouisMauritius

T +230 211 6101F +230 211 6173E [email protected]

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Chairman’s Statement 3

Chief Executive’s Review 5-10

Segmental Analysis 11

Group Value-Added Statement 12

Corporate Information 13

Board of Directors 14

Board Profile 15

Senior Management Profile 16

Directors of Subsidiary Companies 17

Corporate Governance Report 19-31

Statutory Disclosures 32-33

Secretary’s Certificate 34

Independent Auditors’ Report 35

Statements of Financial Position 37

Statements of Comprehensive Income 38

Statements of Changes in Equity 39-40

Statements of Cash Flows 41

Notes to the Financial Statements 42-87

Notice of Annual Meeting 88

Proxy Form 89

Contents

Dear Shareholder,

The Board of Directors is pleased to present the Annual Report of EXCELSIOR UNITED DEVELOPMENT

COMPANIES LIMITED for the year ended 30 June 2012, contents of which are listed on the previous

page.

This report was approved by the Board of Directors on 26 September 2012.

René Leclézio Daniel GiraudDirector Director

Excelsior United Development Companies Limited and its Subsidiaries2 Excelsior United Development Companies Limited and its SubsidiariesANNUAL REPORT 2012

Chairman’s Statement

3ANNUAL REPORT 2012

Chairman’s Statement

Excelsior United Development Companies Limited

Year ended June 30, 2012

Dear Shareholder,

In the 12 years that my predecessor, Pierre (Pierrot) Doger de Spéville, was Chairman of the Company, EUDCOS never

lowered its dividend. This not only is proof of your Company’s resilience in good and bad times, but also bears testimony

to Pierrot’s competent stewardship. I would like to take this opportunity to thank him for his valuable contribution to

your Company’s success. Although Pierrot has stepped down as chairman, he will be staying with us as a director of the

Company, for which we are grateful.

Of your Company’s top five investments, namely Swan Group, Mauritius Commercial Bank (MCB), Compagnie Mauricienne

de Commerce (CMC), International Distillers (Mauritius) (IDM), and Medine Distillery Company (MDC), only two, namely

CMC and MDC, are under our direct management. These five investments represent approximately 70 per cent of EUDCOS’s

portfolio. In terms of industry exposure, alcohol manufacturing and distribution (MDC, IDM and New Goodwill Company)

represent c. 35 per cent of the portfolio, financial services (Swan Group and MCB) c. 30 per cent and tourism (Concorde

Travel and Tours, New Mauritius Hotels and Voyages Réunion) c. 15 per cent. The remaining 20 per cent is a mix of local

investments in private and public companies, the two biggest being Innodis (2.5 per cent) and United Basalt Products (2

per cent).

Your Company had a mixed year, with some of the core investments performing well and others less well. CMC’s trading

arm saw a collapse in profits, while its property side (Medine Mews) progressed as budgeted. This year should see a

reversal of that trend, with trading expected to turn around, while Medine Mews’ newly emptied office floors will result

in a fall in rental income. Chronic oversupply of office space nationally, combined with a general movement to Ebène

Cybercity, has resulted in rental pressure on Port Louis property. As has happened elsewhere in the world where lack

of planning caused exoduses from CBDs, there is always a reversal of the movement when infrastructure development

improves, as is currently the case for Port Louis.

On the alcohol front, IDM made a modest 2 per cent increase in profits, while MDC’s profits fell by 20 per cent, mainly

as a result of timing differences and a weak euro, which affected export revenues. MDC’s sales for the coming year are

encouraging, and we are forecasting a 15 per cent improvement in profitability.

Tourism had a relatively bad year, given the general state of the industry, which has been widely commented upon. The

silver lining in the cloud is Concorde’s 51 per cent owned subsidiary Southern Investments, owner of La Palmeraie Hotel in

Palmar. This company has paid down all its debt, and the hotel operates profitably. Despite some mighty headwinds, we

are forecasting an equally good performance this year.

Obituary

The year under review saw the passing of one of our directors, Ghaneshwar (Ladou) Gujadhur. Ladou was appointed to

the board of your Company’s subsidiary, Medine Distillery Company (MDC), in 1991, and to the board of EUDCOS in 1998.

He will be missed for his sound advice and his kindness, which was much appreciated by his fellow directors. He has been

replaced at EUDCOS level by his brother Rajkumar (Shyam) Gujadhur and at MDC level by his son Sheo Gujadhur. I wish

them both much success in their new functions.

I would like to take this opportunity to thank my fellow directors for their support during the year, and to thank the CEO,

Dany Giraud, and his team for their continued commitment to your Company’s progress.

Yours sincerely,

René LeclézioChairman

26 September 2012

4 ANNUAL REPORT 2012Excelsior United Development Companies Limited and its Subsidiaries

Chief Executive’s Review

5Excelsior United Development Companies Limited and its SubsidiariesANNUAL REPORT 2012

Dear Shareholder,

I am pleased to share that EUDCOS’s subsidiaries and associated companies performed satisfactorily in the year under review, despite the persistently difficult economic context, especially in the tourism industry. The Group achieved Rs 571 million in turnover and Rs 160 million in profits, whereas on the stock market the value of our unquoted and quoted stocks increased by 6%.

Given the present lack of visibility in the sectors where we operate, we continue to adopt a cautious approach and implement strong measures to adapt to changes and ensure that our results remain positive and meet with our expectations for the year ahead.

This Annual Report presents an overview of the progress of our key investments.

Key Investments

Beverages

Medine Distillery Company Limited (Medine Distillery) – Subsidiary at 66.7%

Medine Distillery operates under a management agreement with Medine Limited to produce rum, alcohol and vinegar. The products are sold on the domestic market as well as exported to countries in the region.

The company performed well in the year under review, with increased production and the same turnover (Rs 175 million) as in the previous year, as growth in export sales helped to compensate for lower sales in a local market affected by timing differences.

The company’s profitability, however, was affected by a lower margin realised on the export sales, as well as higher production costs due to increases in the price of molasses, coal and electricity. Net profit for the year amounted to Rs 31.2 million, compared with Rs 39.2 million the previous year.

Prospects for financial year ending 30 June 2013 are good. It is expected that sales of alcohol on the domestic market will recover while exports will continue to grow.

International Distillers (Mauritius) Limited (IDM) – Associate at 50.0%

IDM operates a bottling and distribution unit at Plaine Lauzun and has an operations management agreement with New Goodwill Investments Limited.

In the year under review, the company increased its turnover to Rs 456 million from Rs 387 million the preceding year, partly as a result of higher sales volumes. The share of the company’s profits attributable to EUDCOS increased to Rs 28.5 million, from Rs 25.7 million in 2011.

New Goodwill Company Ltd (New Goodwill) – Associate at 33.3%

New Goodwill owns a rum-bottling and distribution unit and has an operations management agreement with New Goodwill Investments Limited.

In the year under review, the company recorded a 35.2% growth in turnover to Rs 1.3 billion, and the share of its profits attributable to EUDCOS increased from Rs 8.8 million to Rs 11.1 million.

Chief Executive’s Review




Tourism

Concorde Tourist Guide Agency Limited (Concorde) – Subsidiary at 50.1%

Concorde is one of the leading travel and destination management companies in Mauritius. The company is well known in the travel business community and has more than 30 years of expertise in providing a range of services and a wide choice of differentiated products to leisure, corporate and inbound travellers.

The year under review was very challenging for the travel and tourism industry, with the prolonged effect of the world economic crisis, the turmoil in the euro zone, and the austerity measures enforced by the European authorities. These have undoubtedly weighed heavily on most companies operating directly or indirectly in this industry, particularly those focusing on the European market.

Our company is not immune to the above as it follows the industry’s mainstream market and is also heavily reliant on Réunion Island, which is closely related to what happens in Europe. The company recorded a total turnover of Rs 86.7 million, representing a decrease of 12 % from Rs 98.9 million in 2011. Revenue for the inbound department was the most affected and registered a 4% drop in the total number of tourist arrivals handled and a much higher decline of 8% in arrivals from Réunion Island. On top of that, it had to face immense pressure to revise its pricing strategy in light of the ever increasing competitive environment.

The company’s incursion into the Groups and Incentives market produced an exceptional outcome the previous year but could not repeat that performance as expected in the year under review.

The appreciation of the rupee against the euro during the year also exacerbated the situation and had a negative impact on the company’s revenues and profitability.

Profit after tax amounted to Rs 9.2 million compared with Rs 13.3 million the previous year. This year’s results include a dividend of Rs 3.5 million received from its Southern Investments subsidiary in the year under review, compared with none the previous year.

The economic situation in the euro zone remains precarious with the persistent debt crisis. Prospects for the short and medium term remain bleak. The volatility of exchange rates and the weakening of the euro are also a cause for concern.

Our company is expecting another difficult year but is confident of tackling the challenges ahead. In line with its new market and product strategy, the company continues to explore business opportunities in the emerging markets and in the cruise segment.

Southern Investments Ltd. (La Palmeraie Hotel) – Subsidiary at 25.2%

Southern Investments Ltd owns La Palmeraie Hotel, a 4-star hotel with 60 rooms situated at Palmar, on the east coast of Mauritius.

During the year 2011, the entire Mauritian hotel industry experienced mixed results and a declining growth rate, with an average occupancy rate of only 65%. The first semester of 2012 did not show any improvement, with a meagre 0.6% increase in the number of arrivals compared with 2011, while the number of rooms increased with newly built and renovated hotels coming into operation. The appreciation of the Mauritian rupee against the euro also contributed to hamper the revenues and profitability of the industry’s operators.

Chief Executive’s Review (continued)


In spite of this gloomy situation and the poor prospects acknowledged by AHRIM, La Palmeraie Hotel was able to achieve a most satisfactory performance with an average occupation rate of 80% in the year under review. The company’s turnover reached Rs 102.9 million, representing a 12% increase on the preceding year’s Rs 92.0 million and increased its net profit after tax to Rs 15.0 million, from Rs 10.7 million the previous year. Our marketing strategy aiming at adapting our pricing to the economic situation and maximising room occupation during the low seasons allowed us to breathe during these periods.

We will pursue our strategy of optimal adaptation to the economic situation and the expectations of our clients, while reinforcing our “Boutique Hotel” identity and differentiating ourselves from our competitors. We believe this will also benefit our search for improved productivity, efficiency and irreproachable quality of service.

Commercial Activities

Compagnie Mauricienne de Commerce Limitée (CMC) – Subsidiary at 89.54%

CMC is the leading operator in the tyre-retreading sector in Mauritius.

The company is also a long-standing and well-established importer and local distributor of new tyres (for all types of vehicles), as well as automotive lubricants and fire protection equipment.

In the year under review, the company’s turnover with respect to the above activities amounted to Rs 146.1 million, compared with Rs 127.3 million the previous year. This was attributable to revenue growth achieved by its main activities, namely tyre-retreading and sale of new tyres, which performed well. Other lines of activity, which include the sale of fire protection products and lubricants, also performed fairly well despite fierce competition in those sectors.

Total profitability for the above lines of activity, however, dropped to Rs 0.8 million from Rs 2.7 million the previous year, mainly as a result of higher cost of sales and operational costs, which included costs associated with the restructuring exercise announced in our previous Annual Report.

The company also owns more than 60% of the total floor area devoted to office accommodation, commercial premises and parking facilities in the Medine Mews building and operates a parking rental service offering both pre-paid terms and hourly rates. These activities are dealt with under Investment Property below.

The company’s total turnover in the year under review increased to Rs 183.3 million from Rs 163.5 million the previous year, and its net profit after tax amounted to Rs 18.6 million, compared with Rs 20.2 million the previous year.

As announced in our previous Annual Report, CMC has carried out a branding and restructuring exercise and has structured its operations into four core activities, i.e. New Tyres and Retreads, Tyre Management Services, Industrial Lubricants, and Fire Protection. The company will launch its own website, www.cmc.mu, in 2013.

The company is confident that its performance will improve once the restructuring exercise has been fully implemented and the new avenues explored at present will provide a positive outcome, despite the adverse economic conditions likely to prevail.




Investment

EUDCOS’s Portfolio of Investments

Over and above its shareholding in its subsidiaries and associates, EUDCOS has a portfolio of investments in a number of private and public companies based in Mauritius. The majority of these investments relate to companies listed on the Official Market (SEM) and the Development & Enterprise Market (DEM) of the Stock Exchange of Mauritius.

During the year under review, the value of the investment portfolio increased by Rs 46.5 million in spite of a decline of 15.4% and 4.5% in the SEM and DEM price indices respectively, from the previous year. The increase is attributable to a change in the valuation basis of our shareholding in Intendance Holdings, an unquoted investment, to reflect the basis used to acquire further shares in the company in July 2012. This has effectively brought an appreciation in the value of that investment by Rs 116.6 million. On the other hand, the value of other quoted and unquoted shares dropped by Rs 70.5 million in line with the drop in the SEM and DEM price indices. Non-core investments were sold during the year and the proceeds were reinvested in the other quoted investments. This transaction gave rise to Rs 11.6 million realised profits.

Dividend income received by the Company during the year increased to Rs 82.0 million, compared with Rs 62.0 million the previous year, as a result of higher dividends received from the Company’s subsidiaries and associates.

The Company’s net profit based on dividend income from its investment portfolio but excluding dividend income from subsidiaries and associates amounted to Rs 33.9 million for the year under review, compared with Rs 22.5 million the previous year.

Investment Property

EUDCOS owns a few investment properties which it holds on a long-term basis and which, in view of their strategic location and good standing, are expected to generate satisfactory returns.

One of the Company’s key investment properties, through its subsidiary CMC, is the Medine Mews building, situated in the heart of Port Louis’ central business district and consisting of two blocks – one housing a shopping arcade on two floors and office accommodation on ten floors, and the other a nine-level car park – representing a total floor area of approximately 19,000 square metres.

The total floor area owned by CMC and offered for rent was fully occupied during the year under review, with the existing tenants renewing their letting contracts. The letting contracts’ lease periods are for at least one year for parking spaces and three years for commercial premises and office accommodation. The tenants include a well-reputed international banking institution, the local office of the World Bank, and some locally established corporate entities operating in the global-business sector. The building’s office accommodation floor space owned by other parties is occupied by tenants with a similar profile. This contributes positively to the image and good standing of the building.

CMC also provides other parking facilities that are well known and popular given their convenient situation in the business district. These are rented out either on pre-paid terms or on an hourly basis.

Total revenues and profit after tax generated by CMC’s Medine Mews operations in the year under review amounted to Rs 37.2 million (2010/11: Rs 36.2 million) and Rs 17.8 million (2010/11: Rs 17.4 million) respectively.

The present year will be challenging, given that some of the office spaces will be vacated in October. Numerous actions have been initiated to secure new tenants of good standing and rental rates in line with the quality of the rental spaces proposed.




Financial Comments

Group’s Financial Results

The Group’s turnover reached Rs 571.3 million, representing a growth of 3.8% compared with the preceding financial year’s Rs 550.4 million. This was achieved mainly with the additional revenues generated by the commercial activities and the hotel operations which compensated for the drop in revenue recorded by the travel and destination management operations.

The Group realised an operating profit of Rs 117.2 million, which was lower than the previous year’s Rs 120.7 million. This drop was largely attributable to the difficult and highly competitive environment affecting the Group’s operational activities during the year and was partly alleviated by profits realised on the sale of non-core investments amounting to Rs 11.6 million.

Finance charges dropped to a mere Rs 0.2 million, from Rs 0.6 million in 2011. This is because of the low gearing at Group level, with all subsidiaries close to fully repaying their debt financing, except for CMC with the financing of its Medine Mews investment property. It should be noted that the finance charges include the impact of foreign-exchange gains and losses, which are mainly attributable to the two tourism-related operations. The gain on exchange of Rs 5.7 million (2011: Rs 5.5 million) has been set off against the finance costs.

As related above, the Group’s associates performed well and contributed significantly to the results of the Group, with the share of profit attributable to the Group for the year progressing satisfactorily to Rs 55.4 million from Rs 48 million the previous year.

The Group’s net profit after tax reached Rs 159.8 million, an improvement on the Rs 153.7 million achieved the previous year. Over the past six years, the Group has reported sustained growth in its net profit after tax, year on year, growing from Rs 123 million back in financial year 2007 to attain Rs 160 million. The Company’s good performance must be viewed in the context of the difficult market and economic conditions which have prevailed since 2008, when the world financial and economic crisis and consequential recessionary era started.




Shareholder Value

The Group’s profit attributable to equity holders after accounting for the share attributable to minority shareholders in the subsidiaries amounted to Rs 129.7 million (2011: Rs 122.5 million), representing earnings per share of Rs 1.07 (2011: Rs 1.01).

An interim dividend of Re 0.30 per share and a final dividend of Re 0.35 per share (2010/11: Re 0.65) were declared on 15 February and 29 June 2012 respectively for the year ended 30 June 2012. They were paid on 30 March and 14 September 2012 respectively.

Shareholder value, represented by the net assets attributable to the Company’s equity holders, increased by 6.6% to reach Rs 1,316 million from Rs 1,233 million the previous year, reflecting net retained earnings of Rs 50.7 million and a net increase of Rs 31.8 million in the value of the Company’s investment portfolio in the year under review.

In light of the above, net assets per share increased to Rs 10.83, from Rs 10.15 the previous year, with the same number of shares in issue.

Acknowledgements

I would like to express my sincere appreciation to an excellent executive team, the Chairman and the members of the Board as well as all the Group’s employees for their loyalty, efficiency, and dedication.

Daniel GiraudChiefExecutiveOfficer

26 September 2012




Segmental Analysis (PBIT)

Year ended 30 June 2012 2011

RevenueRs’ m

Earnings before Interest and Tax

Rs’ mRevenue

Rs’ m

RestatedEarnings before Interest and Tax

Rs’ m

OPERATIONS

Alcoholic beverages 175.4 36.6 175.4 46.3

Commerce 146.1 2.6 127.3 4.5

Investment property 37.2 28.6 36.2 29.5

Tourism and travel 189.6 19.6 191.0 23.7

EQUITIES PORTFOLIO 22.9 29.9 20.5 16.7

Bank and insurance 8.3 8.1

Tourism and travel 0.4 2.0

Other 21.2 6.6

Operating profit 117.3 120.7

ASSOCIATES 55.4 48.0

Alcoholic beverages 46.4 41.3

Tourism and hotels 9.0 6.7

Group Total 571.2 172.7 550.3 168.7

SUMMARY

Alcoholic beverages 175.4 83.0 175.4 87.6

Commerce 146.1 2.6 127.3 4.5

Investment property 37.2 28.6 36.2 29.5

Tourism and travel 189.6 29.0 191.0 32.4

Investments 22.9 - 20.5 -

Bank and insurance 8.3 8.1

Other 21.2 6.6

Group Total 571.2 172.7 550.3 168.7


Group Value Added Statement

year ended 30 June 2012

Restated

% 2012 % 2011

Rs ‘000 Rs ‘000

Revenues 645,777 603,562

Bought-in materials and services (356,881) (331,715)

Value added 288,896 271,847

APPLIED AS FOLLOWS

EMPLOYEES

Wages, salaries, bonuses, pensions and other benefits 30 87,437 29 78,710

GOVERNMENT

Income tax 5 13,140 5 14,468

PROVIDERS OF CAPITAL

Dividends 78,945 97,163

Interests 110 (2,629)

Minority interests 30,139 31,218

38 109,194 46 125,752

REINVESTED

Depreciation and amortisation 28,399 27,589

Retained profit 50,726 25,328

27 79,125 20 52,917

100 288,896 100 271,847


Corporate Information

Registered Office

11th Floor, Medine Mews

4 Chaussée Street

Port Louis

Mauritius

Tel.: (230) 211 6101

Fax: (230) 211 6173

E-mail: [email protected]

Registrar and Transfer Agent

MCB Registry and Securities Limited

Bankers

The Mauritius Commercial Bank Ltd

Barclays Bank PLC

Auditors

BDO & Co.

(CharteredAccountants)


Board of Directors

Directors in Office

The following directors held office at 30 June 2012:

Directors Category

Number of Other Directorships in

Listed Companies

René Leclézio(Chairmanasfrom1July2011)(Vice-Chairmanupto30June2011)

Non-executive 3

Pierre Doger de Spéville(Chairmanupto30June2011) Non-executive 1

Daniel Giraud Executive -

Lajpati Gujadhur Non-executive -

Rajkumar Gujadhur Non-executive -

Gérald Lincoln Independent non-executive -

Marc de Ravel Independent non-executive -


Board Profile

René Leclézio Aged 56. 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, The Anglo-Mauritius Assurance Society Ltd, and Swan Insurance Co. Ltd. Appointed as a director of the Company in 2000. Vice-Chairman from 2002 to June 2011. Member of the Corporate Governance Committee. Chairman since 1 July 2011.

Pierre Doger de Spéville Aged 74. 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. Director of Innodis Ltd.

Daniel Giraud Aged 60. 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 2004. Member of the Corporate Governance Committee.

Lajpati Gujadhur Aged 68. Attorney-at-Law. Director of Rogers & Co. Ltd from 1990 to 2000. Director of the Company since August 1988.

Rajkumar Gujadhur Aged 61. Spent 18 years as assistant and subsequently as manager of Consortium Cinématographique (Maurice) Ltée before joining the family business as assistant manager for 13 years. Appointed director of the Company on 30 September 2011.

Gérald Lincoln Aged 76. Former Executive Manager of The Anglo-Mauritius Assurance Society Ltd. Consultant to the Chief Executive of the Swan Group from 2002 to 2007. Director of the Company since 1983. Chairman of the Audit Committee and member of the Corporate Governance Committee.

Marc de Ravel Aged 49. Spent 19 years in management at Grays Ltd. At present manager and promoter of several business entities involved in salt processing and property development and owner of agricultural land under sugar-cane cultivation. Appointed director of the Company since 30 June 2011. Member of the Audit Committee since July 2011.


Senior Management Profile

Daniel Giraud Aged 60. 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 2004.

Patricia Goder, ACIS Aged 44. 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.

Lewis Ah Ching, FCA Aged 45. Fellow of the Institute of Chartered Accountants in England and Wales (ICAEW). Started 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.

Yves Béga, FAIA Aged 65. Fellow Member of The Association of International Accountants (UK). Worked for The Mauritius Commercial Bank Ltd before taking employment with the WEAL Group in 1976. Joined the Medine and EUDCOS groups of companies in 2001 as Group Financial Coordinator.

ChiefExecutiveOfficer

GroupCompanySecretary

ChiefFinanceOfficer

FinancialCoordinator


as at 30 June 2012

Directors of Subsidiary Companies

Names

Compagnie Mauricienne de Commerce Ltd.

Concorde Tourist GuideAgency Ltd.

Medine Distillery Co. Ltd.

Southern Investments

Ltd.

Mr René Leclézio . . . .

Mr Pierre Doger de Spéville . . . .

Mr Jean Marie Dupuis .

Mrs Catherine Frécaut . .

Mr Daniel Giraud . . . .

Mr Jean Claude Giraud .

Mr Sheo Shankar Gujadhur .

Mr Ramapatee Gujadhur .

Mr Sheokumar Gujadhur .

Mr Jean François Koenig .

Mr Regis Koon Kam King .

Mr Bruno Lebreux .

Mr Edouard Lee Hung Chuen .

Mr Jacques Li Wan Po .

Mr Gérald Lincoln .

Mr Jack Loupy . .

Mr Marc de Ravel .


Corporate Governance Report

19Excelsior United Development Companies Limited and its SubsidiariesANNUAL REPORT 2012ANNUAL REPORT 2012

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

Excelsior United Development Companies 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 121,453,252, consisting of 121,453,252 ordinary shares of Re1.00 each.

Directors

Promotion and

Development

Ltd

Alma

Investments

Co. Ltd

The Black

River

Investments

Co. Ltd

The Medine

Shares Holding

Co. Ltd

Excelsior

United

Development

Cies Ltd

Mr René Leclézio • • • • •

Mr Pierre Doger de Spéville • • • •

Mr Daniel Giraud • •

Mr Lajpati Gujadhur • •

Mr Rajkumar Gujadhur • • •

Mr Marc de Ravel • •

Promotion and Development Ltd

The Black River Investments Co. Ltd

27.10%28.96%

50.10%

27.41%

13.37%

4.90%

1.84%

26.13%

Excelsior United Development Cies

Alma Investments Co. Ltd

Common Directors

Thereisnoultimateholdingcompanyinthecapitalstructure.

Corporate Governance Report

The Medine Shares Holding Co. Ltd


Share Ownership Spread, Shareholder Category Profile, and Major Shareholders

The share ownership spread, shareholder category profile and major shareholders as at 30 June 2012 were as follows:

ORDINARY

Number of Shareholders

Shares Held % Held

SPREAD

1 - 500 240 44,701 0.04

501 - 1,000 105 85,193 0.07

1,001 - 5,000 444 1,244,702 1.02

5,001 - 10,000 167 1,248,609 1.03

10,001 - 50,000 334 7,990,763 6.58

50,001 - 100,000 101 7,081,588 5.83

100,001 - 250,000 58 9,428,847 7.76

250,001 - 500,000 27 9,657,223 7.95

Over 500,000 17 84,671,626 69.72

1,493 121,453,252 100.00

CATEGORY

Individuals 1,297 5,210,073 28.99

Insurance and assurance companies 15 3,946,914 3.25

Pensions and provident funds 17 2,621,638 2.16

Investment and trust companies 15 34,035,245 28.02

Other corporate bodies 149 45,639,382 37.58

1,493 121,453,252 100.00

SHAREHOLDINGS OVER 5%

The Black River Investments Co. Ltd 33,285,205 27.41

The Medine Shares Holding Co. Ltd 31,739,839 26.13

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 2012 was 1,576.

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 investment projects.

Corporate Governance Report (continued)


Summary of dividends per share paid over the past five years:

Financial Year End Re

30.06.08 0.40

30.06.09 0.43

30.06.10 0.60

30.06.11 0.65

30.06.12 0.65

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 at present composed of seven directors – one executive, two independent non-executive, and four non-executive.

Given the nature of the activity of the Company, which consists essentially of the holding of investment in securities, and given the size of the Board, the need to appoint an additional executive director has not been considered for the time being.

The names and profiles of the Board’s members are set out on pages 14 and 15.

Four 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 different operating units, inter alia.

All directors receive timely information so that they can participate fully in Board meetings. All Board members have access to the Company Secretary for any further information that they may require. The Company Secretary ensures that Board members receive appropriate training as necessary.

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 Chairmanship

Mr René Leclézio, who was the Company’s Vice-Chairman since 2002, was appointed Chairman on 1 July 2011. He took over from Mr Pierre Doger de Spéville, who held that position for 12 years from July 1999 to June 2011.

Mr Pierre Doger de Spéville, however, remains a member of the Board.



Change in Directors

Mr Rajkumar Gujadhur was appointed as a director on 30 September 2011 in replacement of Mr Ghaneshwar Gujadhur, who passed away on 21 September 2011.

Directors’ Share Interests

The directors’ direct and indirect interests in the shares of the Company as at 30 June 2012 were as follows:

Number Direct % Indirect %

Directors

Mr René Leclézio - - -

Mr Pierre Doger de Spéville 2,100,000 1.73 10.37

Mr Daniel Giraud 50,162 0.04 0.75

Mr Lajpati Gujadhur 62,103 0.05 0.32

Mr Rajkumar Gujadhur 93,418 0.08 0.42

Mr Gérald Lincoln 36,132 0.03 0.07

Mr Marc de Ravel 4,500 0.00 0.01

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 Acquired/Purchased Directly

Number of Shares Acquired/ Purchased Indirectly

Mr Pierre Doger de Spéville 50,000 -

Senior Officers’ Share Interests

Senior officers’ direct and indirect interests in the shares of the Company as at 30 June 2012 were as follows:

Number Direct % Indirect %

Senior Officers

Mr Daniel Giraud 50,162 0.04 0.75

Mrs Patricia Goder - - -

Mr Lewis Ah Ching - - -

Mr Yves Béga 4,900 0.00 -



During the year under review, share dealings by Senior Officers were as follows:

Number of Shares Acquired/ Purchased Directly

Number of Shares Acquired/ Purchased Indirectly

Mr Yves Béga 4,900 -

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 9 October 1974.

The Company’s Constitution comprises the following main clauses:

• The Company has wide objects and powers;

• There are no pre-emptive rights;

• Fully paid shares are freely transferable;

• The quorum for a meeting of shareholders is five shareholders present or represented;

• The minimum number of directors is six and the maximum number is twelve;

• The quorum for a meeting of the Board is six;

• 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 be allowed to vote on any matter relating to the transaction or proposed transaction in which he is interested and shall 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, 11th Floor, Medine Mews, 4 Chaussée Street, Port Louis.



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:

(a) Corporate Governance Committee

The Corporate Governance Committee at present consists of four members, as follows:

Mr Pierre Doger de Spéville Non-executive Chairman (asfrom1July2011)

Mr René Leclézio Non-executive Member (Chairmanupto30June2011)

Mr Daniel Giraud Executive Member

Mr Gérald Lincoln Independent non-executive Member

In view of his appointment as Chairman of the Company as from 1 July 2011, Mr René Leclézio resigned as chairman of the Corporate Governance Committee on 30 June 2011. However, he remains a member of the committee.

Mr Pierre Doger de Spéville was appointed chairman of the committee on 1 July 2011.

The committee met three times during the year under review and, in accordance with its 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.

(b) Audit Committee

At present, the Audit Committee consists of two members, as follows:

Mr Gérald Lincoln Independent non-executive Chairman

Mr René Leclézio Independent non-executive Member upto30June2011

Mr Ghaneshwar Gujadhur Non-executiveMember passedawayon21September2011

Mr Marc de Ravel Independent non-executive Member asfrom1July2011

In view of his appointment as Chairman of the Company as from 1 July 2011, Mr René Leclézio resigned as member of the Audit Committee on 30 June 2011 and was replaced by Mr Marc de Ravel.

The committee met five times during the year under review and focused on its role as defined by its terms of reference, namely:

a) 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

b) Reviewing the adequacy and effectiveness of its risk management and internal control system

c) Assessing and recommending the appointment of internal and external auditors.



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: this post has been filled

• 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 schemes. The Company believes that its assets are well protected against any foreseeable event

• Health & Safety: a Group Health & 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 operating units, the Group is exposed to a variety of risks, as outlined hereunder.

Business Risks

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.

Human Resource 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 long-term 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 resource risk is an ongoing activity that involves careful planning and constant fluidity to enable Management to tackle any potential changes in the human resource sector. On the basis of the controls and policy in place, we assume that the likelihood of a serious human resource risk occurring is low.



Risk Management (continued)

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 redundant 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.

Health, Safety and Environmental Risk

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 Risk

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 risk such as ensuring a satisfactory quality of service from third parties or payment from debtors. The analysis of legal and commercial risk 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.



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 euro zone’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.

Financial Risk

The Group’s management of financial risk is detailed in note 3 to 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 under review, the internal auditors reported their findings to the Audit Committee on procurement, payment and payroll processes with regard to CMC.



Board Committees and Attendance

Attendance at Board and committee meetings during the year ended 30 June 2012 was as follows:

DirectorsBoard

Meetings

Audit Committee Meetings

Corporate GovernanceCommittee Meetings

No. of meetings held 4 5 3

Mr René Leclézio(Chairman) 4 - 3

Mr Pierre Doger de Spéville 4 - 3

Mr Daniel Giraud 4 - 3

Mr Lajpati Gujadhur 3 - -

Mr Rajkumar Gujadhur appointedon30September2011 2 - -

Mr Gérald Lincoln 3 5 3

Mr Marc de Ravel 4 5 -

Where Board meetings could not be held, decisions were taken by way of written resolutions signed by all directors.

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 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 32.

Third Party Management Agreement

Medine Limited provides management services to the Company and some of its subsidiaries, namely Medine Distillery Company Limited, Compagnie Mauricienne de Commerce Limited, and Concorde Tourist Guide Agency Ltd.

Shareholders’ Agreement

There is no shareholders’ agreement with regard to the Company.

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

Communication with Shareholders

Shareholders are kept informed, through press communiqués, of all material events affecting the Company, especially if an event could have an impact on the share price.

During the year under review, the Group’s quarterly 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 questions. All directors, including the chairmen of the two 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.


Rs Points

June 2008 June 2009 June 2010 June 2011 June 2012

Share Price Demex

10 140

11 145

12 150

13 155

14

15

160

165

9 135

8 130

6 120

7 125

5 115


Calendar of Events

Balance Sheet Date 30 June

Last Annual Meeting of shareholders December 2011

Interim dividend 2011/12

Declaration

Payment

15 February 2012

30 March 2012

Final dividend 2011/12

Declaration

Payment

29 June 2012

14 September 2012

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 2011/12 November 2012

Forthcoming Annual Meeting of shareholders December 2012

Related Party Transactions

Details on related-party transactions are given in note 35 to the financial statements.

Integrated Sustainability Reporting

Given the management agreements and the close relationship existing between Medine Limited and the Eudcos Group, the latter has subscribed to the Code of Ethicsand Business Conduct, the Environmental Policy, and the Safety and Health Policy adopted by Medine Limited in 2011.

Corporate Social Responsibility

By reason of the management agreements and the close relationship existing between Medine Limited and the Eudcos Group, all CSR initiatives of the Company and of its subsidiaries are generally channelled through Fondation Medine Horizons, the Medine Group’s vehicle for the implementation of social projects.

Moreover, to comply with the CSR Fund Provision introduced by the Finance Act 2009, the Company and its subsidiaries have transferred their respective CSR Fund contributions for the financial year ended 30 June 2012, where applicable, to Fondation Medine Horizons.



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:

a) Adequate accounting records and an effective system of internal control and risk management have been maintained

b) The Code of Corporate Governance has been adhered to and, where there has not been compliance, relevant explanations have been provided

c) The external auditors are responsible for reporting on whether the financial statements are fairly presented.

Signed on behalf of the Board of Directors


26 September 2012



Directors’ Names and Interests in Shares

The names of the directors of the Company and their share interests are set out on page 22.

In addition, a list of the directors of subsidiary companies is given on page 17.

Directors’ Service Contracts

The directors have no service contract with the Company.

Directors’ Remuneration and Benefits

2011/12Rs

2010/11Rs

Directors of the Holding Company

Remuneration and benefits paid by the holding company to:

- Executive directors 30,000 30,000

- Non-executive directors 280,010 190,000

Remuneration and benefits paid by subsidiary companies to:

- Executive directors 1,703,237 1,015,313


Other Directors of Subsidiary Companies

Remuneration and benefits paid by the respective subsidiary companies to:

- Executive directors 7,500 30,000


- Number of non-executive directors 15 15

The emoluments of the directors have not been disclosed on an individual basis, because of the commercial sensitivity of such information.

Contracts of Significance

During the year under review, there was no contract 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 20.

Other Statutory Disclosures


Donations

Group Company

2011/12Rs

2010/11Rs

2011/12Rs

2010/11Rs

CSRPolitical Other donations

2,704,557-

182,455

2,630,502-

127,611

1,302,782--

1,436,000--

Auditors’ Remuneration

Group Company

2011/12Rs

2010/11Rs

2011/12Rs

2010/11Rs

Audit fees paid to:

- BDO & Co. 1,330,000 1,300,000 270,000 260,000

- Other firms - - - -

Fees paid for other services provided by:

- BDO & Co. - 158,000 - 40,000

- Other firms - - - -

Other services provided by the auditors consisted mainly of tax computation and the filing of tax returns.

Dividends

An interim dividend of Re 0.30 per share and a final dividend of Re 0.35 per share, totalling Rs 78,944,613.80 (2010/11: Re 0.65 and Rs 78,944,631.80) were declared on 15 February and 29 June 2012 respectively for the year ended 30 June 2012. These were paid on 30 March and 14 September 2012 respectively.


26 September 2012

Other Statutory Disclosures (continued)


June 30, 2012

In my capacity as Company Secretary of Excelsior United Development Companies 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, 2012 all such returns as are required of the company under the Companies Act 2001.

Patricia Goder

CompanySecretary

26 September 2012

Secretary’s Certificate


This report is made solely to the members of Excelsior United Development Companies 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.

Report on the Financial Statements

We have audited the Group financial statements of Excelsior United Development Companies Limited and its subsidiaries (the “Group”) and the Company’s separate financial statements set out on pages 37 to 87 which comprise the statements of financial position at June 30, 2012, the statements of 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. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

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.

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.

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 37 to 87 give a true and fair view of the financial position of the Group and of the Company at June 30, 2012, 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 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, tax and business advisers 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 and making the disclosures required by Section 8.4 of the Code of Corporate Governance of Mauritius (“Code”). Our responsibility is to report on these disclosures.

In our opinion, the disclosures in the Corporate Governance Report are consistent with the requirements of the Code.

BDO & Co Per Georges Chung Ming Kan, F.C.C.ACharteredAccountants LicensedbyFRCPort Louis, Mauritius

26 September 2012

Independent Auditors’ Report to the Members


Financial Statements

STATEMENTS OF FINANCIAL POSITION - Year ended June 30, 2012


TheGroup TheHoldingCompany

Restated Restated Restated July1, Restated July1,

Note 2012 2011 2010 2012 2011 2010 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

ASSETS

Non-currentassetsProperty,plantandequipment 5 278,586 288,907 300,644 435 632 1,073Investmentproperties 6 279,696 279,696 279,696 26,965 26,965 26,965Intangibleassets 7 15,628 16,746 17,683 - - -Investmentsinsubsidiaries 8 - - - 76,609 76,609 76,609Investmentsinassociates 9 217,036 202,463 180,145 73,697 73,697 73,697Investmentsinavailable-for-salefinancialassets 10 711,127 664,646 430,376 711,127 664,646 430,376Deferredtaxassets 11 1,745 1,989 894 67 169 233

1,503,818 1,454,447 1,209,438 888,900 842,718 608,953

CurrentassetsInventories 12 60,589 56,017 48,454 - - -Tradeandotherreceivables 13 192,508 173,776 115,280 37,281 14,810 8,852Amountsreceivablefromgroupcompanies 14 - - - 50,000 69,366 119,222Cashandbankbalances 15 45,919 34,654 80,343 995 913 16,394

299,016 264,447 244,077 88,276 85,089 144,468

Totalassets 1,802,834 1,718,894 1,453,515 977,176 927,807 753,421

EQUITYANDLIABILITIES

CapitalandreservesSharecapital 16 121,453 121,453 121,453 121,453 121,453 121,453Sharepremium 13,830 13,830 13,830 13,830 13,830 13,830Revaluationsurplusandotherreserves 17 559,578 527,784 368,834 550,492 516,994 352,974Retainedearnings 620,931 570,205 544,877 235,970 220,743 252,713

Owners’interest 1,315,792 1,233,272 1,048,994 921,745 873,020 740,970Non-controllinginterests 220,441 212,658 196,257 - - -

Totalequity 1,536,233 1,445,930 1,245,251 921,745 873,020 740,970

LIABILITIES

Non-currentliabilitiesBorrowings 18 36,005 46,808 29,668 - - -Deferredtaxliabilities 11 14,356 12,902 12,438 - - -Retirementbenefitobligations 19 20,877 20,722 13,079 3,749 4,105 3,981

71,238 80,432 55,185 3,749 4,105 3,981CurrentliabilitiesTradeandotherpayables 20 116,072 92,932 79,797 9,169 7,368 6,631Proposeddividend 30 42,508 42,508 - 42,508 42,508 -Currenttaxliabilities 21 2,938 9,330 11,073 5 806 1,839Borrowings 18 33,845 47,762 62,209 - - -

195,363 192,532 153,079 51,682 50,682 8,470

Totalliabilities 266,601 272,964 208,264 55,431 54,787 12,451

Totalequityandliabilities 1,802,834 1,718,894 1,453,515 977,176 927,807 753,421

ThefinancialstatementshavebeenapprovedforissuebytheBoardofDirectorson26September2012.

RenéLeclézio DanielGiraudDirector Director

Thenotesonpages42to87formanintegralpartofthefinancialstatements.Auditors’reportonpage35.

38 Excelsior United Development Companies Limited and its Subsidiaries ANNUAL REPORT 2012

STATEMENTSOFCOMPREHENSIVEINCOME-YearendedJune30,2012


Restated Restated Note 2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Turnover 22 571,252 550,332 85,115 65,014Operatingexpenses 23 (472,717) (438,014) (7,269) (5,439)

Operatingprofit 98,535 112,318 77,846 59,575Otherincome 24 19,101 5,183 17,459 7,272Other(losses)/gains 25 (338) 3,256 - -Shareofprofitinassociates 9 55,424 48,047 - -

Profitbeforefinancerevenue/(costs) 172,722 168,804 95,305 66,847Financerevenue/(costs) 26 228 (627) - (7)

Profitbeforetax 172,950 168,177 95,305 66,840Incometax 21 (13,140) (14,468) (1,133) (1,647)

Profitfortheyear 159,810 153,709 94,172 65,193

Othercomprehensiveincome:Available-for-salefinancialassets 31 33,290 164,209 33,290 164,209Shareofcurrencytranslationreserveonconsolidationofassociates 31 (2,701) (1,227) - -Remeasurementofretirementbenefitobligations 31 983 (7,060) 245 (222)Incometaxrelatingtocomponentofothercomprehensiveincome 31 (147) 1,059 (37) 33

Totalothercomprehensiveincome,netoftax 31,425 156,981 33,498 164,020

Totalcomprehensiveincomefortheyear 191,235 310,690 127,670 229,213

Profit attributable to:-Ownersoftheparent 129,671 122,491 94,172 65,193-Non-controllinginterests 30,139 31,218 - -

159,810 153,709 94,172 65,193Total comprehensive income attributable to:-Ownersoftheparent 161,465 281,441 127,670 229,213-Non-controllinginterests 29,770 29,249 - -

191,235 310,690 127,670 229,213

Earningspershare(Re.) 32 1.07 1.01 0.78 0.54



STATEMENTSOFCHANGESINEQUITY-YearendedJune30,2012

TheGroup

Attributabletoownersoftheparent

Revaluation Surplus and Non- Share Share Other Retained Controlling Total Note Capital Premium Reserves Earnings Total interests Equity Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

AtJuly1,2011-Aspreviouslystated 121,453 13,830 533,512 570,154 1,238,949 215,316 1,454,265-EffectofearlyadoptingIAS19(revised) 2(a)(iii) - - (5,728) 51 (5,677) (2,658) (8,335)

-Asrestated 121,453 13,830 527,784 570,205 1,233,272 212,658 1,445,930Totalcomprehensiveincomefortheyear - - 31,794 129,671 161,465 29,770 191,235Dividendsdeclaredtonon-controllinginterests-Subsidiaries - - - - - (21,390) (21,390)-Associates - - - - - (597) (597)Dividendspaidtoownersoftheparentcompany 30 - - - (78,945) (78,945) - (78,945)

BalanceatJune30,2012 121,453 13,830 559,578 620,931 1,315,792 220,441 1,536,233

AtJuly1,2010-Aspreviouslystated 121,453 13,830 370,263 544,877 1,050,423 197,238 1,247,661-EffectofearlyadoptingIAS19(revised) 2(a)(iii) - - (1,429) - (1,429) (981) (2,410)

-Asrestated 121,453 13,830 368,834 544,877 1,048,994 196,257 1,245,251Totalcomprehensiveincomefortheyear - - 158,950 122,491 281,441 29,249 310,690Dividendsdeclaredtonon-controllinginterests-Subsidiaries - - - - - (12,286) (12,286)-Associates - - - - - (562) (562)Dividendspaidtoownersoftheparentcompany 30 - - - (97,163) (97,163) - (97,163)

BalanceatJune30,2011 121,453 13,830 527,784 570,205 1,233,272 212,658 1,445,930


40 Excelsior United Development Companies Limited and its Subsidiaries ANNUAL REPORT 2012

TheHoldingCompany

Revaluation Share Share Surplusand Retained Note Capital Premium OtherReserves Earnings Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

AtJuly1,2011-Aspreviouslystated 121,453 13,830 517,911 220,689 873,883-EffectofearlyadoptingIAS19(revised) 2(a)(iii) - - (917) 54 (863)

-Asrestated 121,453 13,830 516,994 220,743 873,020Totalcomprehensiveincomefortheyear - - 33,498 94,172 127,670Dividends 30 - - - (78,945) (78,945)

BalanceatJune30,2012 121,453 13,830 550,492 235,970 921,745

AtJuly1,2010-Aspreviouslystated 121,453 13,830 353,702 252,713 741,698-EffectofearlyadoptingIAS19(revised) 2(a)(iii) - - (728) - (728)

-Asrestated 121,453 13,830 352,974 252,713 740,970Totalcomprehensiveincomefortheyear - - 164,020 65,193 229,213Dividends 30 - - - (97,163) (97,163)

BalanceatJune30,2011 121,453 13,830 516,994 220,743 873,020


STATEMENTSOFCHANGESINEQUITY-YearendedJune30,2012


STATEMENTSOFCASHFLOWS-YearendedJune30,2012


Note 2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

OperatingactivitiesCashreceivedfromcustomers 1,024,968 983,599 3,407 3,027Cashpaidtosuppliersandemployees (910,576) (875,663) (5,382) (4,619)

Cashgeneratedfrom/(absorbedby)operations 114,392 107,936 (1,975) (1,592)Dividendsreceived-Subsidiaries - - 24,494 18,803-Associates 38,150 24,502 36,919 23,357-Others 21,256 22,305 21,256 22,305Interestreceived 24 3,565 1,679 5,660 7,197Interestpaid 26 (5,440) (6,123) - (7)Incometaxpaid (18,382) (15,492) (1,869) (2,323)

Netcashinflowfromoperatingactivities 153,541 134,807 84,485 67,740

InvestingactivitiesPurchaseofproperty,plantandequipment 15(c) (16,102) (14,985) - -Purchaseofintangibleassets 7 (115) (483) - -Purchaseofinvestmentsinfinancialassets 10 (14,750) (70,061) (14,750) (70,061)Disposalsofinvestmentsinfinancialassets 13,181 - 13,181 -Netcashadvancetorelatedcompanies - (27,832) (3,889) -Proceedsondisposalsofproperty,plantandequipment 1,378 563 - -

Netcashoutflowfrominvestingactivities (16,408) (112,798) (5,458) (70,061)

FinancingactivitiesProceedsfromborrowings 73 40,000 - 41,495Repaymentofborrowings (27,063) (24,464) - -Financeleaseprincipalpayments (634) (979) - -Dividendspaidtocompany’sshareholders 30 (78,945) (54,655) (78,945) (54,655)Dividendspaidtonon-controllinginterests (21,390) (12,286) - -

Netcashoutflowfromfinancingactivities (127,959) (52,384) (78,945) (13,160)

Increase/(Decrease)incashandcashequivalents 9,174 (30,375) 82 (15,481)

MovementincashandcashequivalentsAtJuly1, 11,472 41,847 913 16,394Increase/(Decrease) 9,174 (30,375) 82 (15,481)

AtJune30, 15 20,646 11,472 995 913


NOTES TO THE FINANCIAL STATEMENTS - Year ended June 30, 2012

42 Excelsior United Development Companies Limited and its SubsidiariesANNUAL REPORT 2012

1 COMPANYPROFILE

ExcelsiorUnitedDevelopmentCompaniesLimited(EUDCOS)isalimitedliabilitycompanyincorporatedanddomiciledin Mauritius. The main activity of the company consists principally of investing in shares and holding property.Itsregisteredofficeissituatedat11thFloor,MedineMews,4ChausséeStreet,PortLouis.

ThesefinancialstatementswillbesubmittedforconsiderationandapprovalattheforthcomingAnnualMeetingofShareholdersoftheCompany.

2 SIGNIFICANTACCOUNTINGPOLICIES

Theprincipalaccountingpoliciesadoptedinthepreparationofthesefinancialstatementsaresetoutbelow:

Thesepolicieshavebeenconsistentlyappliedtoalltheperiodpresented,unlessotherwisestated.

(a) Basisofpreparation

ThefinancialstatementsofExcelsiorUnitedDevelopmentCompaniesLimitedanditssubsidiariescomplywiththeCompaniesAct2001andhavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRS).

Thefinancialstatementsarepreparedunderthehistoricalcostconvention,exceptthat:

(i) certainproperty,plantandequipmentarecarriedatdeemedcostoratrevaluedamount;

(ii) investmentspropertiesarestatedatfairvalue;

(iii)available-for-saleinvestmentsarestatedattheirfairvalue;and

(iv)relevantfinancialassetsandfinancialliabilitiesarestatedattheirfairvalueoratamortisedcost.

(i) Standards, Amendments to published Standards and Interpretations effective in the reporting period

IAS 24, ‘Related Party Disclosures’ (Revised 2009), clarifies and simplifies the definition of a related party andremovestherequirementforgovernment-relatedentitiestodisclosedetailsofalltransactionswiththegovernmentandothergovernment-relatedentities.This revisedstandard isnotexpectedtohaveany impactontheGroup’sfinancialstatements.

AmendmentstoIFRIC14,‘PrepaymentsofaMinimumFundingRequirement’correctanunintendedconsequenceofIFRIC14,‘IAS19–Thelimitonadefinedbenefitasset,minimumfundingrequirementsandtheirinteraction’.Without the amendments, entities arenot permitted to recognise as an asset somevoluntary prepayments forminimumfundingcontributions.ThiswasnotintendedwhenIFRIC14wasissued,andtheamendmentscorrectthis.ThisamendmentisnotexpectedtohaveanyimpactontheGroup’sfinancialstatements.

Disclosures – Transfers of Financial Assets (Amendments to IFRS 7). These amendments improve the disclosurerequirementsinrelationtotransferredfinancialassets.TheamendmentsarenotexpectedtohaveanyimpactontheGroup’sfinancialstatements.

SevereHyperinflationandRemovalofFixedDatesforFirst-timeAdopters(AmendmentstoIFRS1).Theseamendmentsreplacereferencestoafixedtransitiondatewith‘thedateoftransitiontoIFRSs’andsetouttherequirementsforhowanentityresumespresentingfinancialstatementsinaccordancewithIFRSsafteraperiodwhentheentitywasunabletocomplywithIFRSsbecauseitsfunctionalcurrencywassubjecttoseverehyperinflation.TheamendmentsareunlikelytohaveanimpactontheGroup’sfinancialstatements.

ImprovementstoIFRSs(issuedMay6,2010)

IAS1(Amendment),‘PresentationofFinancialStatements’,clarifiesthatanentitymaypresenttheanalysisofthecomponentsofothercomprehensiveincomebyitemeitherinthestatementofchangesinequityorinthenotestothefinancialstatements.ThisamendmentisnotexpectedtohaveanyimpactontheGroup’sfinancialstatements.

IAS34(Amendment), ‘InterimFinancialReporting’,emphasisestheprinciple in IAS34that thedisclosureaboutsignificanteventsandtransactionsininterimperiodsshouldupdatetherelevantinformationpresentedinthemostrecentannualfinancialreport.Theamendmentclarifieshowtoapplythisprincipleinrespectoffinancialinstrumentsandtheirfairvalues.ThisamendmentwillnothaveanimpactontheGroup’sfinancialstatements.



2 SIGNIFICANTACCOUNTINGPOLICIES(continued)

(a) Basisofpreparation(continued)

(i) Standards, Amendments to published Standards and Interpretations effective in the reporting period (continued)

ImprovementstoIFRSs(issuedMay6,2010)(continued)

IFRS1(Amendment),‘First-timeAdoptionofInternationalFinancialReportingStandards’,clarifiesthatifafirst-timeadopterchangesitsaccountingpoliciesoritsuseofIFRS1exemptionsafterpublishingasetofIAS34interimfinancialinformation,itshouldexplainthosechangesandincludetheeffectsofsuchchangesinitsopeningreconciliationswithin thefirstannual IFRS reporting. Theamendmentalsoclarifies that theexemption tousea ‘deemedcost’arisingfromarevaluationtriggeredbyaneventthatoccurredatorbeforethedateoftransitiontoIFRSisextendedtorevaluationsthatoccurduringtheperiodcoveredbythefirstIFRSfinancialstatements.TheamendmentspecifiesthatentitiessubjecttorateregulationareallowedtousepreviousGAAPcarryingamountsofproperty,plantandequipment or intangible assets as deemed cost on an item-by-item basis. Entities that use this exemption arerequiredtotesteachitemforimpairmentunderIAS36atthedateoftransition.ThisamendmentisnotexpectedtohaveanyimpactontheGroup’sfinancialstatements.

IFRS7(Amendment),Financial Instruments:Disclosures’,encouragesqualitativedisclosures inthecontextofthequantitativedisclosurerequiredtohelpuserstoformanoverallpictureofthenatureandextentofrisksarisingfromfinancialinstruments.Theamendmentalsoclarifiestherequiredlevelofdisclosurearoundcreditriskandcollateralheldandprovidesrelieffromdisclosureofrenegotiatedloans.ThisamendmentisunlikelytohaveanimpactontheGroup’sfinancialstatements.

IFRIC13(Amendment),‘CustomerLoyaltyProgrammes’clarifiesthatthe‘fairvalue’ofawardcreditsshouldtakeintoaccounttheamountofdiscountsorincentivesthatwouldotherwisebeofferedtocustomerswhohavenotearnedawardcreditsfromaninitialsaleandanyexpectedforfeitures.ThisamendmentisunlikelytohaveanimpactontheGroup’sfinancialstatements.

(ii) Standards, Amendments to published Standards and Interpretations issued but not yet effective

Certainstandards,amendmentstopublishedstandardsandinterpretationshavebeenissuedthataremandatoryforaccountingperiodsbeginningonorafterJanuary1,2012orlaterperiods,butwhichtheGrouphasnotearlyadopted.

Atthereportingdateofthesefinancialstatements,thefollowingwereinissuebutnotyeteffective:

DeferredTax:RecoveryofUnderlyingAssets(AmendmentstoIAS12)

AmendmentstoIAS1PresentationofItemsofOtherComprehensiveIncome

IFRS9FinancialInstruments

IAS27SeparateFinancialStatements

IAS28InvestmentsinAssociatesandJointVentures

IFRS10ConsolidatedFinancialStatements

IFRS11JointArrangements

IFRS12DisclosureofInterestsinOtherEntities

IFRS13FairValueMeasurement

IFRIC20StrippingCostsintheProductionPhaseofaSurfaceMine

Disclosures—OffsettingFinancialAssetsandFinancialLiabilities(AmendmentstoIFRS7)

IAS32OffsettingFinancialAssetsandFinancialLiabilities(AmendmentstoIAS32)

AmendmenttoIFRS1(GovernmentLoans)

AnnualImprovements2009-2011Cycle

Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: TransitionGuidance





(ii) Standards, Amendments to published Standards and Interpretations issued but not yet effective (continued)

Whererelevant,theGroupisstillevaluatingtheeffectoftheseStandards,amendmentstopublishedStandardsandInterpretationsissuedbutnotyeteffective,onthepresentationofitsfinancialstatements.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accountingestimates.ItalsorequiresmanagementtoexerciseitsjudgementintheprocessofapplyingtheGroup’saccountingpolicies.Theareasinvolvingahigherdegreeofjudgementorcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatements,aredisclosedinNote4.

(iii) Change in Accounting Policy due to the Early Application of IAS 19 (as revised in 2011) Employee Benefits

In the current year, the Group has applied IAS 19 (as revised June 2011) Employee Benefits and the relatedconsequentialamendmentsinadvanceoftheireffectivedates.TheGrouphasappliedIAS19(asrevisedin2011)retrospectivelyand inaccordancewiththetransitionalprovisionsassetout in IAS19paragraph173(asrevisedin2011).

Thesetransitionalprovisionsdonothaveanimpactinfutureperiods.Theopeningstatementoffinancialpositionoftheearliestcomparativeperiodpresented(July1,2010)hasbeenrestated.

Theamendments to IAS19changetheaccountingfordefinedbenefitplansandterminationbenefits.Themostsignificant change relates to the accounting for changes in defined benefit obligations and plan assets. Theamendments require the recognition of changes in defined benefit obligations and in fair value of plan assetswhentheyoccur,andhenceeliminatethe‘corridorapproach’permittedunderthepreviousversionofIAS19andacceleratetherecognitionofpastservicecosts.

Allactuarialgainsandlossesarerecognisedimmediatelythroughothercomprehensiveincomeinorderforthenetpensionassetorliabilityrecognisedinthestatementoffinancialpositiontoreflectthefullvalueoftheplandeficitorsurplus.Furthermore,theinterestcostandexpectedreturnonplanassetsusedinthepreviousversionofIAS19arereplacedwitha‘net-interest’amountunderIAS19(asrevisedin2011),whichiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliabilityorasset.IAS19(asrevisedin2011)introducescertainchangesinthepresentationofthedefinedbenefitcostincludingmoreextensivedisclosures.

ImpactofEarlyApplicationofIAS19(asrevisedin2011)

These2012consolidatedfinancialstatementsarethefirstfinancialstatementsinwhichtheGrouphasearlyadoptedIAS19(asrevisedin2011).IAS19(asrevisedin2011)hasbeenadoptedretrospectivelyinaccordancewithIAS8.Consequently,theGrouphasadjustedopeningequityasofJuly1,2010andthefiguresfor2011havebeenrestatedasifIAS19(asrevisedin2011)hadalwaysbeenapplied.

TheGroup Retirement Net benefit Deferredtax obligations liabilities Equity BalanceatJuly1,2010 Rs’000 Rs’000 Rs’000

-Aspreviouslystated (10,244) (11,969) (1,247,661)

-EffectofearlyadoptingIAS19(revised) (2,835) 425 2,410

-Asrestated (13,079) (11,544) (1,245,251)

Retirement Net benefit Deferredtax obligations liabilites Equity BalanceatJune30,2011 Rs’000 Rs’000 Rs’000

-Aspreviouslystated (10,916) (12,384) (1,454,265) -EffectofearlyadoptingIAS19(revised)on2010figures (2,835) 425 2,410

-EffectofearlyadoptingIAS19(revised)on2011figures (6,971) 1,046 5,925

-Asrestated (20,722) (10,913) (1,445,930)





(iii) Change in Accounting Policy due to the Early Application of IAS 19 (as revised in 2011) Employee Benefits (continued)

ImpactofEarlyApplicationofIAS19(asrevisedin2011)(continued)

TheHoldingCompany Retirement benefit Deferredtax obligations assets Equity BalanceatJuly1,2010 Rs’000 Rs’000 Rs’000

-Aspreviouslystated (3,124) 104 (741,698) -EffectofearlyadoptingIAS19(revised) (857) 129 728

-Asrestated (3,981) 233 (740,970)

Retirement benefit Deferredtax obligations assets Equity BalanceatJune30,2011 Rs’000 Rs’000 Rs’000

-Aspreviouslystated (3,089) 16 (873,883) -EffectofearlyadoptingIAS19(revised)on2010figures (857) 129 728 -EffectofearlyadoptingIAS19(revised)on2011figures (159) 24 135

-Asrestated (4,105) 169 (873,020)

TheGroup TheHoldingCompany Theeffectonprofitfortheyearwasasfollows; 2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Decrease/(Increase)ofemployeebenefitexpenses 590 89 (111) 63 (Increase)/Decreaseofincometaxexpense (89) (13) 17 (9)

Increase/(Decrease)ofprofitfortheyear 501 76 (94) 54

Theeffectonthestatementsofothercomprehensive incomewasasfollows: Remeasurementofretirementbenefitobligations 983 (7,060) 245 (222) (Increase)/Decreaseofincometaxrelatingto componentsofothercomprehensiveincome (147) 1,059 (37) 33 Increase/(Decrease)ofothercomprehensive incomefortheyear 836 (6,001) 208 (189)

Increase/(Decrease)oftotalcomprehensive incomefortheyear 1,337 (5,925) 114 (135)

(b) Property,plantandequipment

Landandbuildings,heldforuseintheproductionorsupplyofgoodsorforadministrativepurposes,andcertainplantandmachineryarestatedattheirfairvalue,basedonperiodicvaluations,byexternalindependentvaluers,less subsequent depreciation for buildings and plant and machinery. Any accumulated depreciation at the dateofrevaluationiseliminatedagainstthegrosscarryingamountoftheassetandthenetamountisrestatedtotherevaluedamountoftheasset.

Allotherproperty,plantandequipmentisinitiallyrecordedatcost.Certainproperty,plantandequipment,whichhavesubsequentlybeenshownatmarketvalue,basedonvaluationsmadebyexternalindependentvaluers,arenowstatedatdeemedcostlessdepreciation.Thedirectorsconsidertheserevaluedamountsasthedeemedcost.Allotherassetsarestatedathistoricalcostlessdepreciation.

Historicalcostincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.




(b) Property,plantandequipment(continued)

Subsequentcostsareincludedintheassetscarryingamountorrecognisedasaseparateassetasappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.

Increases in thecarryingamountarisingonrevaluationarecredited toothercomprehensive incomeandshownas revaluation surplus in shareholders’ equity. Decreases that offset previous increases of the same asset arecharged against revaluation surplus, directly in equity; all other decreases are charged to the statement ofcomprehensiveincome.

Properties in thecourseofconstruction forproduction, rentaloradministrativepurposesor forpurposesnotyetdeterminedarecarriedatcostlessanyrecognisedimpairmentloss.Costincludesprofessionalfeesandforqualifyingassets, borrowing costs capitalised. Depreciation of these assets, on the same basis as other property assets,commenceswhentheassetsare ready for their intendeduse.Depreciationonotherassets iscalculatedon thestraight-linemethodtowriteofftheircostorrevaluedamountstotheirresidualvaluesovertheirestimatedusefullivesasfollows:

Annualrates

Buildings 1%-4%

Plantandmachinery 1%-20%

Furniture,fittingsandequipment 10%,20%and331/3%

Motorvehicles 20%

Electricalequipmentandinstallations 10%,15%and331/3%

Electricalinstallations 10%-15%

AssetcostinglessthanRs10,000 100%

Landisnotdepreciated.

Theassets’residualvaluesandusefullivesarereviewed,andadjustedifappropriate,attheendofeachreportingperiod.

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written downimmediatelytoitsrecoverableamount.

Gainsandlossesondisposalofproperty,plantandequipmentaredeterminedbyreferencetotheircarryingamountandareincludedinthestatementofcomprehensiveincome.Ondisposalofrevaluedassets,amountsincludedinrevaluationsurplusrelatingtothatassetaretransferredtoretainedearnings.

(c) Investmentproperty

Investment property, held to earn rentals/or for capital appreciation or both and not occupied by the Group iscarriedatfairvalue,representingopen-marketvaluedeterminedannually.Changesinfairvaluesareincludedinthestatementofcomprehensiveincomeaspartofotherincome.

Whentheuseofapropertychangesfromowner-occupiedtoinvestmentproperty,thepropertyisremeasuredtofairvalueandreclassifiedasinvestmentproperty.

(d) Intangibleassets

(i) Goodwill

GoodwillrepresentstheexcessofcostofacquisitionovertheGroup’sinterestinthefairvalueofthenetidentifiableassetsoftheacquiredsubsidiary,associateorjointlycontrolledentityatthedateofacquisition.

Goodwillonacquisitionsofsubsidiariesisincludedinintangibleassets.AnynetexcessoftheGroup’sinterestinthenetfairvalueofacquiree’snetidentifiableassetsovercostisrecognisedinthestatementofcomprehensiveincome.

Goodwillonacquisitionsofassociatesandjointlycontrolledentitiesisincludedininvestmentsinassociates.

Goodwillistestedannuallyforimpairmentandcarriedatcostlessaccumulatedimpairmentlosses.Ondisposalofasubsidiary,associateorjointlycontrolledentity,theattributableamountofgoodwillisincludedinthedeterminationofthegainsandlossesondisposal.

Goodwillisallocatedtocash-generatingunitsforthepurposeofimpairmenttesting.




(d) Intangibleassets(continued)

(ii) Computersoftware

Acquiredcomputersoftwarelicencesarecapitalisedonthebasisofcostsincurredtoacquireandbringtousethespecificsoftwareandareamortisedovertheirestimatedusefullives(1-5years).

(e) Investmentsinsubsidiaries

Separatefinancialstatementsoftheinvestor

Investmentsinsubsidiariesarecarriedatcost.Thecarryingamountisreducedtorecogniseanyimpairmentinthevalueofindividualinvestments.

Consolidatedfinancialstatements

Subsidiariesareallentities(includingspecialpurposeentities)overwhichtheGrouphasthepowertogovernthefinancialandoperatingpoliciesgenerallyaccompanyingashareholdingofmorethanonehalfofthevotingrights.Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhether theGroupcontrolsanotherentity.Subsidiariesare fully consolidated fromthedateonwhichcontrolistransferredtotheGroup.Theyarede-consolidatedfromthedatethatcontrolceases.

TheacquisitionmethodofaccountingisusedtoaccountforbusinesscombinationsbytheGroup.Theconsiderationtransferredfortheacquisitionofasubsidiaryisthefairvaluesoftheassetstransferred,theliabilitiesincurredandtheequityinterestsissuedbytheGroup.

Theconsiderationtransferredincludesthefairvalueofanyassetorliabilityresultingfromacontingentconsiderationarrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities andcontingentliabilitiesassumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate.Onanacquisition-by-acquisitionbasis,theGrouprecognisesanynon-controllinginterestintheacquireeeitherat fair value or at thenon-controlling interest’s proportionate share of the acquiree’s net assets. Subsequent toacquisition,thecarryingamountofnon-controllinginterestsistheamountofthoseinterestsatinitialrecognitionplusthenon-controllinginterests’shareofsubsequentchangesinequity.

Theexcessof the consideration transferred, theamountof anynon-controlling interest in theacquireeand theacquisition-datefairvalueofanypreviousequityinterestintheacquireeoverthefairvalueoftheGroup’sshareoftheidentifiablenetassetsacquiredisrecordedasgoodwill.Ifthisislessthanthefairvalueofthenetassetsofthesubsidiaryacquiredinthecaseofabargainpurchase,thedifferenceisrecogniseddirectlyinthestatementofcomprehensiveincome.

Inter-companytransactions,balancesandunrealisedgainsontransactionsbetweenGroupcompaniesareeliminated.Unrealisedlossesarealsoeliminated.AccountingpoliciesofsubsidiarieshavebeenchangedwherenecessarytoensureconsistencywiththepoliciesadoptedbytheGroup.

Transactionsandnon-controllinginterests

TheGrouptreatstransactionswithnon-controlling interestsastransactionswithequityownersoftheGroup.Forpurchases fromnon-controlling interests, thedifferencebetweenany considerationpaidand the relevant shareacquiredofthecarryingvalueofnetassetsofthesubsidiaryisrecordedinequity.Gainsorlossesondisposalstonon-controllinginterestsarealsorecordedinequity.

WhentheGroupceasestohavecontrolorsignificantinfluence,anyretainedinterestintheentityisremeasuredtoitsfairvalue,withthechangeincarryingamountrecognisedinprofitorloss.Thefairvalueistheinitialcarryingamountfor thepurposes of subsequently accounting for the retained interest as an associate, joint venture or financialasset.Inaddition,anyamountspreviouslyrecognisedinothercomprehensiveincomeinrespectofthatentityareaccountedforasiftheGrouphaddirectlydisposedoftherelatedassetsorliabilities.Thismaymeanthatamountspreviouslyrecognizedinothercomprehensiveincomearereclassifiedtoprofitorloss.

(f) Investmentsinassociates

Separatefinancialstatementsoftheinvestor

Investmentsinassociatesarecarriedatcost.Thecarryingamountisreducedtorecogniseanyimpairmentinthevalueofindividualinvestments.




(f) Investmentsinassociates(continued)

Consolidatedfinancialstatements

AnassociateisanentityoverwhichtheGrouphassignificantinfluencebutnotcontrol,orjointcontrol.Investmentsinassociatesareaccountedforbytheequitymethod.TheGroup’sinvestmentinassociatesincludesgoodwill(netofanyaccumulatedimpairmentloss)identifiedonacquisition.

InvestmentsinassociatesareinitiallyrecognisedatcostasadjustedbypostacquisitionchangesintheGroup’sshareofthenetassetsoftheassociatelessanyimpairmentinthevalueofindividualinvestments.

WhentheGroup’sshareof lossesexceeds its interest inanassociate,theGroupdiscontinuesrecognisingfurtherlosses,unlessithasincurredlegalorconstructiveobligationormadepaymentsonbehalfoftheassociate.

unrealisedprofitsandlossesareeliminatedtotheextentoftheGroup’sinterestintheassociate.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofanimpairmentoftheassettransferred.

Wherenecessary,appropriateadjustmentsaremadetothefinancialstatementsofassociatestobringtheaccountingpoliciesusedinlinewiththoseadoptedbytheGroup.

(g) Financialinstruments

(i) FinancialAssets

TheGroupclassifiesitsfinancialassetsasavailable-for-salefinancialassets.Theclassificationdependsonthepurposeforwhichtheinvestmentswereacquired.

Managementdeterminestheclassificationofitsinvestmentsatinitialrecognitionandre-evaluatesthisdesignationateveryreportingdate.

Available-for-sale financial assets

Available-for-salefinancialassetsarenon-derivativesthatareeitherdesignatedinthiscategoryornotclassifiedinanyoftheothercategories.Theyareincludedinnon-currentassetsunlessmanagementintendstodisposeoftheinvestmentwithintwelvemonthsoftheendofthereportingperiod.

Initialmeasurement

Purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits topurchaseorsell theasset. Investmentsare initiallymeasuredat fairvalueplus transactioncosts forallfinancialassets.

Derecognition

FinancialassetsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshaveexpiredorhavebeentransferredandtheGrouphastransferredsubstantiallyallrisksandrewardsofownership.

Subsequentmeasurement

Available-for-salefinancialassetsaresubsequentlycarriedattheirfairvalues.

Investmentsinequityinstrumentsthatdonothaveaquotedmarketpriceinanactivemarketandwhosefairvaluecannotbereliablymeasuredaremeasuredatcost.

Unrealised gains and losses arising from changes in the fair value of financial assets classified as available-for-sale are recognised in equity. When financial assets classified as available-for-sale are sold or impaired, theaccumulatedfairvalueadjustmentsareincludedinthestatementofcomprehensiveincomeasgainsandlossesonfinancialassets.

Thefairvaluesofquotedinvestmentsarebasedoncurrentbidprices.Ifthemarketforafinancialassetisnotactive(and forunlistedsecurities), theGroupestablishes fairvaluebyconsideringvariousvaluation techniques. Theseincludetheuseofrecentarm’slengthtransactions,referencetootherinstrumentsthataresubstantiallythesame,discountedcashflowsanalysis,optionpricingmodelsrefinedtoreflecttheissuer’sspecificcircumstances,cost,netassetsanddividendbasis.




(g) Financialinstruments(continued)

(i) Financialassets(continued)

Available-for-sale financial assets (continued)

Impairmentoffinancialassets

TheGroupassessesattheendofeachreportingperiodwhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.Inthecaseoffinancialassetsclassifiedasavailable-for-sale,asignificantorprolongeddeclineinthefairvalueofthesecuritybelowitscostisconsideredindeterminingwhetherthesecuritiesare impaired. Ifanysuchevidenceexists foravailable-for-salefinancialassets, thecumulative loss-measuredasthedifferencebetweenacquisitioncostandthecurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinequityisremovedfromequityandrecognizedinthestatementofcomprehensiveincome.Ifthefairvalueofapreviouslyimpaireddebtsecurityincreasesandtheincreasecanbeobjectivelyrelatedtoaneventoccurringaftertheimpairmentlosswasrecognised,theimpairmentlossisreversedandthereversalrecognisedinthestatementofcomprehensiveincome.Impairmentlossesforaninvestmentinanequityinstrumentarenotreversedthroughthestatementofcomprehensiveincome.

(ii) Tradereceivables

Tradereceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.AprovisionforimpairmentoftradereceivablesisestablishedwhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofreceivables.Theamountoftheprovisionisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheeffectiveinterestrate.Theamountofprovisionisrecognisedinthestatementofcomprehensiveincome.

(iii) Bankborrowings

Borrowingsarerecognisedinitiallyatfairvaluebeingtheirissueproceedsnetoftransactioncostsincurred.Borrowingsaresubsequentlystatedatamortisedcost;anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionvalueisrecognisedinthestatementofcomprehensiveincomeovertheperiodoftheborrowingsusingtheeffectiveinterestmethod.

BorrowingsareclassifiedascurrentliabilitiesunlesstheGrouphasanunconditionalrighttodefersettlementoftheliabilityforatleasttwelvemonthsaftertheendofthereportingperiod.

(iv) Tradepayables

Tradepayablesarestatedattheirfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

(v) Cashandcashequivalents

Cashandcashequivalentsincludecashinhand,depositsheldatcallwithbanksandbankoverdraft.Bankoverdraftisshownwithinborrowingsincurrentliabilitiesonthestatementoffinancialposition.

(vi) Sharecapital

Ordinarysharesareclassifiedasequity.

(h) Inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.Costisdeterminedbytheweightedaveragemethod.Thecostoffinishedgoodsandworkinprogresscomprisesrawmaterials,directlabour,otherdirectcostsandrelatedproductionoverheads,butexcludesinterestexpense.Netrealisablevalueistheestimateofthesellingpriceintheordinarycourseofbusiness,lessthecostsofcompletionandsellingexpenses.

(i) Impairmentofassets

Assetsthathaveanindefiniteusefullifearenotsubjecttoamortisationandaretestedannuallyforimpairment.Assetsthataresubjecttoamortisationarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognisedfortheamountbywhichthecarryingamountoftheassetexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits).




(j) Accountingforleases

Leasesareclassifiedasfinanceleaseswherethetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptothelessee.Allotherleasesareclassifiedasoperatingleases.

Financeleasesarecapitalisedattheestimatedpresentvalueoftheunderlyingleasepayments.Eachleasepaymentisallocatedbetweentheliabilityandfinancechargessoastoachieveaconstantrateontheremainingbalanceoftheliability.Thecorrespondingrentalobligations,netoffinancecharges,areincludedinotherlong-termpayables.Theinterestelementofthefinancechargeischargedtothestatementofcomprehensiveincomeovertheleaseperiod.Theproperty,plantandequipmentacquiredunderfinanceleasingcontractsisdepreciatedovertheusefullifeoftheasset.

Paymentsmadeunderoperatingleasesarechargedtothestatementofcomprehensiveincomeonastraight-linebasisovertheperiodofthelease.

(k) Operatingleases

Assetsleasedoutunderoperatingleasesareincludedininvestmentpropertiesinthestatementoffinancialposition.Thecarryingamountsofpropertiesrepresenttheirfairvalue.Rentalincomeisrecognisedonastraightlinebasisovertheleaseterm.

(l) Deferredincometaxes

Deferredincometaxisprovidedinfull,usingtheliabilitymethod,ontemporarydifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsinthefinancialstatements.However,ifthedeferredincometaxarisesfrominitialrecognitionofanassetorliabilityinatransaction,otherthanabusinesscombination,thatatthetimeofthetransactionaffectsneitheraccountingnortaxableprofitorloss,itisnotaccountedfor.

Deferredincometaxisdeterminedusingtaxratesthathavebeenenactedbytheendofthereportingperiodandareexpectedtoapplyintheperiodwhentherelateddeferredincometaxassetisrealisedorthedeferredincometaxliabilityissettled.

Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilised.

(m)Retirementbenefitobligation

Definedbenefitplans

Adefinedbenefitplanisapensionplanthatdefinesanamountofpensionbenefitthatanemployeewillreceiveonretirement,usuallydependentononeormorefactorssuchasage,yearsofserviceandcompensation.TheGroupcontributestoadefinedbenefitpensionschemeforitsemployees.Theassetsoftheschemeareheldseparatelyfromthoseofthecompanyandareadministeredbyaninsurancecompany.Thepensionschemeisfunded.

Fordefinedbenefit retirementplan, thecostofprovidingbenefits isdeterminedusing theProjectedUnitCreditMethod,withactuarialvaluationsbeingcarriedoutattheendofeachreportingperiod.

Remeasurementcomprisingofactuarialgainsandlosses,theeffectoftheassetceiling(ifapplicable)andthereturnonplanassets(excludinginterest)arerecognisedimmediatelyinthestatementsoffinancialpositionwithachargeorcredittoothercomprehensiveincomeintheperiodinwhichtheyoccur.

Remeasurementrecordedinothercomprehensiveincomeisnotrecycled.However,theentitymaytransferthoseamountsrecognisedinothercomprehensiveincomewithinequity.Pastservicecostisrecognisedinprofitorlossintheperiodofplanamendment.Net-interestiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliabilityorasset.

Definedbenefitcostsaresplitintothreecategories:

•servicecost,past-servicecost,gainsandlossesoncurtailmentsandsettlements;

•net-interestexpenseorincome;and

•remeasurement.




(m)Retirementbenefitobligation(continued)

Definedbenefitplans(continued)

TheGrouppresentsthefirsttwocomponentsofdefinedbenefitcostsinthelineitem‘employeebenefitsexpense’initsincomestatement(bynatureofexpensesaggregation).Curtailmentsgainsandlossesareaccountedforaspast-servicecost.

Remeasurementarerecordedinothercomprehensiveincome.

TheretirementbenefitobligationsrecognisedinthestatementsoffinancialpositionrepresentstheactualdeficitorsurplusintheGroup’sdefinedbenefitplans.Anysurplusresultingfromthiscalculationislimitedtothepresentvalueofanyeconomicbenefitsavailableintheformofrefundsfromtheplansorreductionsinfuturecontributionstotheplans.

Aliabilityforaterminationbenefitisrecognisedattheearlierofwhentheentitycannolongerwithdrawtheofferoftheterminationbenefitandwhentheentityrecognisesanyrelatedrestructuringcosts.

Definedcontributionplans

AdefinedcontributionplanisapensionplanunderwhichtheGrouppaysafixedcontributionsintoaseparateentity.TheGrouphasnolegalorconstructiveobligationtopayfurthercontributionsifthefunddoesnotholdsufficientassetstopayallemployeesthebenefitsrelatingtoemployeeserviceinthecurrentandpriorperiods.

TheGroupoperatesadefinedcontributionretirementbenefitplanforallqualifyingemployees.Paymentstodeferredcontributionretirementplansarechargedasanexpenseastheyfalldue.

RetirementGratuity

Foremployeeswhoarenotcoveredbytheabovepensionplans,thenetpresentvalueofRetirementGratuitypayableundertheEmploymentRightsAct2008iscalculatedbyanactuaryandprovidedfor.Theobligationsarisingunderthisitemarenotfunded.

(n) Foreigncurrencies

(i) Functionalandpresentationcurrency

ItemsincludedintheconsolidatedfinancialstatementsaremeasuredusingMauritianRupees,thecurrencyoftheprimary economic environment in which the entity operates (“functional currency”). The consolidated financialstatementsarepresentedinMauritianRupees,whichisthecompany’sfunctionalandpresentationcurrency.

(ii) Transactionsandbalances

Foreigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingonthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedinthestatementofcomprehensiveincome.

Foreignexchangegainsandlossesthatrelatetoborrowingsandcashandcashequivalentsarepresentedinthestatementofcomprehensiveincomewith‘finance(costs)/revenue-net’.Allotherforeignexchangegainsandlossesarepresentedinthestatementofcomprehensiveincomewithin‘other(losses)/gains-net’.

Non-monetaryitemsthataremeasuredathistoricalcostinaforeigncurrencyaretranslatedusingtheexchangerateatthedateofthetransaction.

Non-monetaryitemsthataremeasuredatfairvalueinaforeigncurrencyaretranslatedusingtheexchangeratesatthedatethefairvaluewasdetermined.

Translationdifferencesonnon-monetaryitems,suchasequitiesclassifiedasavailable-for-salefinancialassets,areincludedinthefairvaluereserveinequity.




(o) Revenuerecognition

Revenuecomprisesthefairvalueforthesaleofgoodsandservices,netofvalue-addedtax,rebatesanddiscountsandaftereliminatingsaleswithintheGroup.

Salesofgoodsarerecognisedwhengoodsaredeliveredandtitlehaspassed.Salesofservicesarerecognisedintheaccountingyearinwhichtheservicesarerendered(byreferencetocompletionofthespecifictransactionassessedonthebasisoftheactualserviceprovidedasaproportionoftotalservicestobeprovided).

Dividendincomeisrecognisedwhentheshareholder’srighttoreceivepaymentisestablished.

OtherrevenuesearnedbytheGrouparerecognisedonthefollowingbases:-

• Interestincome-onatime-proportionbasisusingtheeffectiveinterestmethod.Whenareceivableisimpaired,the company reduces the carrying amount to its recoverable amount, being the estimated future cash flowdiscounted 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 asconditionswarrant.

• Rentalincomefrominvestmentproperty-onastraight-linebasisoverthetermofthelease.

• Otherincome-onanaccrualbasisunlesscollectabilityisindoubt.

(p) Provisions

ProvisionsarerecognisedwhentheGrouphasapresentorconstructiveobligationasaresultofpasteventswhichitisprobablewillresultinanoutflowofeconomicbenefitsthatcanbereasonablyestimated.

(q) Segmentreporting

Segmentinformationpresentedrelatetooperatingsegmentsthatengageinbusinessactivitiesforwhichrevenuesareearnedandexpensesincurred.

(r) Dividenddistribution

DividenddistributiontotheCompany’sshareholdersisrecognisedasaliabilityintheGroup’sfinancialstatementsintheperiodinwhichthedividendsaredeclared.

3 FINANCIALRISKMANAGEMENT

3.1 Financialriskfactors

TheGroup’sactivitiesexpose it toa varietyoffinancial risks: interest rate risk, credit risk, liquidity risk, foreignexchangeriskandmarketrisk.

Adescriptionofthesignificantriskfactorsisgivenbelowtogetherwiththeriskmanagementpoliciesapplicable.

Interestraterisk

TheGroup’sincomeandoperatingcashflowsareexposedtointerestrateriskasitsometimesborrowsatvariablerates.TheGrouphasinterest-bearingassets.

TheGroup

AtJune30,2012,iftheinterestratesonrupee-denominatedborrowingshadbeen1%lower/higherwithallothervariablesheldconstant,post-taxprofitfortheyearwouldhavebeenRs892,450(2011:Rs1,555,245)higher/lower,mainlyasaresultoflower/higherinterestexpenseonfloatingrateborrowings.

Theaboveriskispartlymitigatedbytheinterest-bearingassetsoftheGroup.

AtJune30,2012,iftheinterestratesonrupee-denominatedinterestbearingassetshadbeen1%lower/higherwithallothervariablesheldconstant,post-taxprofitfortheyearwouldhavebeenRs1,116,619(2011:Rs1,097,095)lower/higher,mainlyasaresultoflower/higherinterestincomeoninterestbearingassets.



3 FINANCIALRISKMANAGEMENT(continued)

3.1 Financialriskfactors(continued)

Interestraterisk(continued)

TheHoldingCompany

AtJune30,2012,iftheinterestratesonrupee-denominatedinterestbearingassetshadbeen1%lower/higherwithallothervariablesheldconstant,post-taxprofitfortheyearwouldhavebeenRs740,239(2011:Rs978,785)lower/higher,mainlyasaresultoflower/higherinterestincomeoninterestbearingassets.

Creditrisk

TheGroup’screditriskisprimarilyattributabletoitstradereceivables.Theamountspresentedinthestatementoffinancialpositionarenetofallowancesfordoubtfulreceivables,estimatedbytheGroup’smanagementbasedonpriorexperienceandthecurrenteconomicenvironment.

TheGrouphasnosignificantconcentrationof credit risk. TheGrouphaspolicies inplace toensure that salesofproductsandservicesaremadetocustomerswithanappropriatecredithistory.Cashtransactionsare limitedtohighcreditqualityfinancialinstitutions.TheGrouphaspoliciesthatlimittheamountofcreditexposuretoanyonefinancialposition.

ThetablebelowshowsthecreditconcentrationoftheGroupattheendofthereportingperiod:

TheGroup TheHoldingCompany 2012 2011 2012 2011 Counterparties % % % %

10majorcounterpartiespercompany 62 53 - - Others(diversifiedrisk) 38 47 - - 100 100 - -

Managementdoesnotexpectanylossesfromnon-performanceofthesecustomers.

Liquidityrisk

Prudentliquidityriskmanagementimpliesmaintainingsufficientcashandmarketablesecurities,theavailabilityoffundingthroughanadequateamountofcommittedcreditfacilitiesandtheabilitytocloseoutmarketpositions.

TheGroupaimsatmaintainingflexibilityinfundingbykeepingcommittedcreditlinesavailable.

ThetablebelowanalysestheGroup’snon-derivativefinancialliabilitiesintorelevantmaturitygroupingsbasedontheremainingperiodattheendofthereportingperiodtothecontractualmaturitydate.

TheGroup Lessthan Between1 Between2 Over 1year and2years and5years 5years Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

AtJune30,2012 Bankoverdraft 25,273 - - - 25,273 Bankloan 3,402 5,359 11,625 18,346 38,732 Leaseliabilities 446 149 526 - 1,121 Unsecuredloanfromrelatedcompanies 4,724 - - - 4,724 Tradeandotherpayables 116,072 - - - 116,072

AtJune30,2011 Bankoverdraft 23,182 - - - 23,182 Bankloan 14,267 6,037 17,897 22,589 60,790 Leaseliabilities 657 285 - - 942 Unsecuredloanfromrelatedcompanies 9,656 - - - 9,656 Tradeandotherpayables 92,932 - - - 92,932




3.1 Financialriskfactors(continued)

Liquidityrisk(continued)

TheHoldingCompany Lessthan Between1 Between2 Over 1year and2years and5years 5years Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

AtJune30,2012 Tradeandotherpayables 9,169 - - - 9,169

AtJune30,2011 Tradeandotherpayables 7,368 - - - 7,368

Foreignexchangerisk

TheGroupoperatesinternationallyandisexposedtoforeignexchangeriskarisingfromvariouscurrencyexposuresprimarilywithrespecttoEurosandUSdollars.

Foreignexchangeriskarisesfromfuturecommercialtransactionsrecognisedassetsandliabilitiesandnetinvestmentsin foreign operation. The Group’s dealings in foreign currency purchases is managed by seeking the best rates.FluctuationsarisingonpurchasestransactionsarepartlyoffsetbysalestransactionseffectedinEurosandUSdollarstosomeextent.

Differenceonexchangeresultingfromsettlementoftransactionsdenominatedinforeigncurrenciesisrecognisedinthestatementsofcomprehensiveincome.

TheGroup

AtJune30,2012,iftherupeehadweakened/strengthenedby1%againsttheUSdollar/Euro/GBP/ZARwithallvariablesheldconstant,posttax-profitofthegroupfortheyearwouldhavebeenRs550,000(2011:Rs531,000)higher/lower,mainlyasaresultofforeignexchangegains/lossesontranslationofnetUSdollar/Euro/GBP/ZARdenominatedassets.

Profitismoresensitivetomovementinexchangeratesin2012than2011becauseoftheincreasedamountofnetUSdollar/Euro/GBP/ZARdenominatedassets.

USD EURO ZAR GBP MUR Total 2012 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

BankBalances 5,559 29,780 8 - 10,572 45,919 Tradeandotherreceivables 4,413 30,523 611 677 156,284 192,508 Tradeandotherpayables (9,959) (14,939) (92) - (91,082) (116,072)

USD EURO ZAR GBP MUR Total 2011 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

BankBalances 11,734 17,641 332 - 4,947 34,654 Tradeandotherreceivables 136 44,730 55 702 128,153 173,776 Tradeandotherpayables (6,060) (30,994) (152) - (55,726) (92,932)

Marketrisk

TheGroup is susceptible toequitymarketprice risk arising fromuncertainties about futurepricesof theequitysecurities because of investments held by the Group and classified on the statements of financial positionasavailable-for-sale.Tomanage itsprice riskarising frominvestments inequitysecurities, theGroupdiversifiesitsportfolio.

Sensivityanalysis

Thetablebelowsummarisestheimpactofincreases/decreasesinthefairvalueoftheinvestmentsonequity.Theanalysisisbasedontheassumptionthatthefairvaluehasincreased/decreasedby5%.

ImpactonEquity

TheGroup TheHoldingCompany 2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Available-for-sale 35,556 33,232 35,556 33,232




3.2 Fairvalueestimation

The fairvalueoffinancial instruments traded inactivemarkets isbasedonquotedmarketpricesat theendofthereportingperiod.Amarket is regardedasactive ifquotedpricesarereadilyandregularlyavailablefromanexchange,dealer,broker,industrygroup,pricingservice,orregulatoryagency,andthosepricesrepresentactualandregularlyoccurringmarkettransactionsonanarm’slengthbasis.ThequotedmarketpriceusedforfinancialassetsheldbytheGroupisthecurrentbidprice.Theseinstrumentsareincludedinlevel1.

Instruments included in level 1 comprise primarily quoted equity investments classified as trading securities oravailable-for-sale.

The fair value of financial instruments that are not traded in an active market is determined using valuationtechniques.Thesevaluationtechniquesmaximisestheuseofobservablemarketdatawhereitisavailableandrelyaslittleaspossibleonspecificestimates.Ifallsignificantinputsrequiredtofairvalueaninstrumentsareobservable,theinstumentisincludedinlevel2.

Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theinstrumentisincludedinlevel3.

The fair value of financial instruments that are not traded in an active market is determined using valuationtechniques.Thecompanyusesavarietyofmethodsandmakesassumptionsthatarebasedonmarketconditionsexistingattheendofeachreportingperiod.Thecost/dividend/netassetsvaluebasishasbeenusedtodeterminethefairvaluefortheunquotedavailable-for-saleinvestments.

Thenominalvaluelessestimatedcreditadjustmentsoftradereceivablesandpayablesareassumedtoapproximatetheirfairvalues.ThefairvalueoffinancialliabilitiesfordisclosurepurposesisestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratethatisavailabletotheGroupforsimilarfinancialinstruments.

3.3 Capitalriskmanagement

TheGroup’sobjectiveswhenmanagingcapitalare:

• tosafeguardtheentity’sabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsforshareholdersandbenefitsforotherstakeholders;and

• toprovideanadequatereturntoshareholdersbypricingproductsandservicescommensuratelywiththelevelofrisk.

TheGroupsets theamountofcapital inproportion to risk.TheGroupmanages thecapital structureandmakesadjustmentstoitinthelightofchangesineconomicconditionsandtheriskcharacteristicsoftheunderlyingassets.

Inordertomaintainoradjustthecapitalstructure,theGroupmayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issuenewshares,orsellassetstoreducedebt.

Consistentlywithothersintheindustry,theGroupmonitorscapitalonthebasisofthedebt-to-adjustedcapitalratio.

Thisratioiscalculatedasnetdebtadjustedcapital.Netdebtiscalculatedastotaldebt(asshowninthestatementoffinancialposition)lesscashandcashequivalents.Adjustedcapitalcomprisesallcomponentsofequity(i.e.sharecapital,sharepremium,non-controllinginterests,retainedearnings,andrevaluationsurplusandotherreserves).

During2012,theGroup’sstrategy,whichwasunchangedfrom2011,wastomaintainthedebt-to-adjustedcapitalratioatthelowerendinordertosecureaccesstofinanceatareasonablecost.

Thedebt-to-adjustedcapitalratiosoftheGroup/CompanyatJune30,2012andatJune30,2011wereasfollows:

TheGroup TheHoldingCompany 2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Totaldebt(note18) 69,850 94,570 - - Less:cashandcashequivalents(note15(a)) (45,919) (34,654) (995) (913)

Netdebt 23,931 59,916 (995) (913)

Totalequity 1,536,233 1,445,930 921,745 873,020

Debt-to-adjustedcapitalratio 0.02:1 0.04:1 n/a n/a

Thedecreaseinthedebt-to-adjustedcapitalratioduring2012resultedprimarilyfromtherepaymentofbankloansduringtheyearendedJune30,2012andtheprofitrealisedforthesameperiod.



4 CRITICALACCOUNTINGESTIMATESANDJUDGEMENTS

Estimates and judgements are continuously evaluated and are based on historical experience and otherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.

Criticalaccountingestimatesandassumptions

TheGroupmakesestimates andassumptions concerning the future. The resultingaccountingestimateswill, bydefinition,seldomequaltherelatedactualresults.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:

(a) Estimatedimpairmentofgoodwill

TheGrouptestsannuallywhethergoodwillhassufferedanyimpairment,inaccordancewiththeaccountingpolicystatedinNote2(d)(i).Thesecalculationsrequiretheuseofestimates.

(b) Impairmentofavailable-for-salefinancialassets

TheGroupfollowstheguidanceofIAS39ondeterminingwhenaninvestmentisother-than-temporarilyimpaired.

Thisdeterminationrequiressignificant judgement. Inmakingthis judgement,theGroupevaluates,amongotherfactors,thedurationandextenttowhichthefairvalueofaninvestmentislessthanitscost,andthefinancialhealthof and near-term business outlook for the investee, including factors such as industry and sector performance,changesintechnologyandoperationalandfinancingcashflow.

(c) FairValueofsecuritiesnotquotedinanactivemarket

The fair value of securities not quoted in an active market may be determined by the Group using valuationtechniques including thirdparty transactionvalues,earnings,netassetsvalue,cost,dividendordiscountedcashflows,whicheverisconsideredtobeappropriate.TheGroupwouldexercisejudgementandestimatesonthequalityandquantityofpricingsourcesused.Changesinassumptionsaboutthesefactorscouldaffectthereportedfairvalueoffinancialinstruments.

(d) Revaluationofhotelbuildingsandplantandmachinery

Hotel buildings held for use in the supply of goods and services or for administrative purposes and plant andmachineryarestatedattheirfairvalue,basedonperiodicvaluationsbyexternalindependentvaluers.

(e) FairValueofinvestmentproperty

Investmentproperty,heldtoearnrentals/orforcapitalappreciationorbothandnotoccupiedbytheCompanyiscarriedatfairvalue.

TheinvestmentpropertiesoftheholdingcompanyhavebeenvaluedbyJPWInternationalLtd,PropertySurveyor,atRs25,000,000attheiropenmarketvalueonMarch2,2005.

Thecostoftheinvestmentpropertiesofthesubsidiarycompanyrepresentsitsfairvalue.

Thedirectorsconsiderthecarryingamountsoftheinvestmentpropertiestorepresenttheirfairvalue.

(f) Pensionbenefits

Thepresentvalueofthepensionobligationsdependsonanumberoffactorsthataredeterminedonanactuarialbasisusinganumberofassumptions.Theassumptionsused indetermining thenetcost/(income) forpensionsincludethediscountrate.Anychangesintheseassumptionswillimpactthecarryingamountofpensionobligation.

TheGroupdeterminestheappropriatediscountrateattheendofeachyear.Thisistheinterestratethatshouldbeusedtodeterminethepresentvalueofestimatedfuturecashoutflowsexpectedtoberequiredtosettlethepensionobligations. In determining the appropriate discount rate, the Group considers the interest rates of high-qualitycorporatebondsthataredenominatedinthecurrencyinwhichthebenefitswillbepaid,andthathavetermstomaturityapproximatingthetermsoftherelatedpensionobligation.



4 CRITICALACCOUNTINGESTIMATESANDJUDGEMENTS(continued)

(g) Limitationsofsensitivityanalysis

Sensitivityanalysisinrespectofmarketriskdemonstratestheeffectofachangeinakeyassumptionwhileotherassumptionsremainunchanged.Inreality,thereisacorrelationbetweentheassumptionsandotherfactorsItshouldalsobenotedthat thesesensitivitiesarenon-linearand largerorsmaller impactsshouldnotbe interpolatedorextrapolatedfromtheseresults.

Sensitivity analysis does not take into consideration that the Group’s assets and liabilities are managed. OtherlimitationsincludetheuseofhypotheticalmarketmovementstodemonstratepotentialriskthatonlyrepresenttheGroup’sviewofpossiblenear-termmarketchangesthatcannotbepredictedwithanycertainty.

(h) Assetlivesandresidualvalue

Property, plant and equipment are depreciated over its useful life taking into account residual values, whereappropriate. The actual lives of the assets and residual values are assessed annually and may vary dependingonanumberoffactorsInreassessingassetlives,factorssuchastechnologicalinnovation,productlifecyclesandmaintenanceprogrammesaretakenintoaccount.Residualvalueassessmentsconsiderissuessuchasfuturemarketconditions,theremaininglifeoftheassetandprojecteddisposalvalues.Considerationisalsogiventotheextentofcurrentprofitsandlossesonthedisposalofsimilarassets.

(i) Depreciationpolicies

Property,plantandequipmentaredepreciatedtotheirresidualvaluesovertheirestimatedusefullives.TheresidualvalueofanassetistheestimatednetamountthattheGroupwouldcurrentlyobtainfromdisposaloftheasset,iftheassetwerealreadyoftheageandinconditionexpectedattheendofitsusefullife.

Thedirectorsthereforemakeestimatesbasedonhistoricalexperienceandusebestjudgementtoassesstheusefullivesofassetsandtoforecasttheexpectedresidualvaluesoftheassetsattheendoftheirexpectedusefullives.

(j) Impairmentofassets

Goodwill is considered for impairment at least annually. Property, plant and equipment, and intangible assetsare considered for impairment if there is a reason tobelieve that impairmentmaybenecessary. Factors takenintoconsiderationinreachingsuchadecisionincludetheeconomicviabilityoftheasset itselfandwhereit isacomponentofalargereconomicunit,theviabilityofthatunititself.

Futurecashflowsexpectedtobegeneratedbytheassetsorcash-generatingunitsareprojected,takingintoaccountmarketconditionsandtheexpectedusefullivesoftheassets.Thepresentvalueofthesecashflows,determinedusinganappropriatediscountrate,iscomparedtothecurrentnetassetvalueand,iflower,theassetsareimpairedto thepresent value. The impairment loss is first allocated togoodwill and then to theother assetsof a cash-generatingunit.

Cashflowswhichareutilisedintheseassessmentsareextractedfromformalbudget.TheGrouputilisesthevaluationmodeltodetermineassetandcash-generatingunitvaluessupplemented,whereappropriate,bydiscountedcashflowandothervaluationtechniques.



5 PROPERTY,PLANTANDEQUIPMENT

(i) TheGroup

Building Furniture, Freehold on Fittings Electrical Land& Leasehold Plant& and Motor Equipment& Buildings Land Machinery Equipments Vehicles Installations Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

(a) COSTANDVALUATION AtJuly1,2011 29,105 161,269 164,250 39,069 33,030 12,867 439,590 Additions 864 - 8,768 2,648 4,418 217 16,915 Disposals - - (4,182) - (4,633) - (8,815) Transfer - (669) - 669 - - - Assetsscrapped - - - (2,498) - (109) (2,607)

AtJune30,2012 -Valuation - 160,000 30,000 - - - 190,000 -Cost 29,969 600 138,836 39,888 32,815 12,975 255,083

29,969 160,600 168,836 39,888 32,815 12,975 445,083

DEPRECIATION AtJuly1,2011 9,091 14,442 67,971 28,622 19,716 10,841 150,683 Chargefortheyear 931 5,256 12,388 3,112 4,740 739 27,166 Disposaladjustments - - (4,112) - (4,633) - (8,745) Transfer - (669) - 669 - - - Adjustmentforassets

scrapped - - - (2,498) - (109) (2,607)

AtJune30,2012 10,022 19,029 76,247 29,905 19,823 11,471 166,497

NETBOOKVALUE AtJune30,2012 19,947 141,571 92,589 9,983 12,992 1,504 278,586

Building Furniture, Freehold on Fittings Electrical Land& Leasehold Plant& and Motor Equipment& Buildings Land Machinery Equipments Vehicles Installations Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

(b) COSTANDVALUATION AtJuly1,2010 29,105 160,531 158,274 38,039 30,185 12,373 428,507 Additions - 738 6,010 1,733 6,010 494 14,985 Disposals - - (34) (34) (3,165) - (3,233) Assetsscrapped - - - (669) - - (669)

AtJune30,2011 -Valuation - 160,000 30,000 - - - 190,000 -Cost 29,105 1,269 134,250 39,069 33,030 12,867 249,590

29,105 161,269 164,250 39,069 33,030 12,867 439,590

DEPRECIATION AtJuly1,2010 8,587 9,450 56,467 25,027 18,598 9,734 127,863 Chargefortheyear 504 4,992 11,521 3,944 4,103 1,107 26,171 Disposaladjustments - - (17) (25) (2,985) - (3,027) Adjustmentforassets

scrapped - - - (324) - - (324)

AtJune30,2011 9,091 14,442 67,971 28,622 19,716 10,841 150,683

NETBOOKVALUE AtJune30,2011 20,014 146,827 96,279 10,447 13,314 2,026 288,907



5 PROPERTY,PLANTANDEQUIPMENT(continued)

(i) TheGroup(continued)

(c) Property,plantandequipmentacquiredunderfinanceleaseareasfollows:

TheGroup

2012 2011

Motor Plant& Motor Plant& Vehicles Machinery Total Vehicles Machinery Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

Costcapitalisedfinanceleases 5,917 867 6,784 6,513 867 7,380 Accumulateddepreciation (4,482) (491) (4,973) (5,132) (396) (5,528)

Netbookvalues 1,435 376 1,811 1,381 471 1,852

(d) Leaseliabilitiesareeffectivelysecuredastherightstotheleasedassetreverttothelessorintheeventofdefault.

(e) ThebuildingsandplantandmachineryofSouthernInvestmentsLimited,asubsidiarycompany,havebeenvaluedbyJPWInternationalLtd,PropertySurveyor,atRs.160,000,000andRs.30,000,000respectively,attheiropenmarketvalueonJune30,2008.Therevaluationsurplusnetofdeferredincometaxeswascreditedtorevaluationsurplusinshareholders’equity.

(f) Iftherevaluedbuildingsandplantandmachinerywerestatedonthehistoricalcostbasis,theamountswouldbeasfollows:

TheGroup

2012 2011

Plant& Plant& Buildings Machinery Total Buildings Machinery Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

Cost 114,128 33,055 147,183 114,128 33,055 147,183 Accumulateddepreciation (21,517) (26,427) (47,944) (18,195) (21,996) (40,191)

Netbookvalues 92,611 6,628 99,239 95,933 11,059 106,992

(g) Theproperty,plantandequipmenthavebeenpledgedassecurityforborrowings.

(h) Depreciationchargehasbeenchargedinoperatingexpenses.

(i) AdditionsincludeRs.813,000(2011:nil)ofassetsacquiredunderfinancelease.

(ii) TheHoldingCompany

Freehold Electrical Land& Equipment& Furniture Buildings Installations &Fittings Total Rs’000 Rs’000 Rs’000 Rs’000

(a) COST AtJuly1,2011&June30,2012 648 2,481 2,081 5,210

DEPRECIATION AtJuly1,2011 305 2,383 1,890 4,578 Chargefortheyear - 97 100 197

AtJune30,2012 305 2,480 1,990 4,775

NETBOOKVALUE AtJune30,2012 343 1 91 435



5 PROPERTY,PLANTANDEQUIPMENT(continued)

(ii) TheHoldingCompany(continued)

Freehold Electrical Land& Equipment& Furniture Buildings Installations &Fittings Total Rs’000 Rs’000 Rs’000 Rs’000

(b) COST AtJuly1,2010&June30,2011 648 2,481 2,081 5,210

DEPRECIATION AtJuly1,2010 305 2,135 1,697 4,137 Chargefortheyear - 248 193 441

AtJune30,2011 305 2,383 1,890 4,578

NETBOOKVALUE AtJune30,2011 343 98 191 632

(c) DepreciationchargeofRs.197,000(2011:Rs.441,000)hasbeenchargedinoperatingexpenses.

6 INVESTMENTPROPERTIES


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

AtJuly1,&June30, 279,696 279,696 26,965 26,965

(a) ThepropertiesoftheHoldingCompanyhavebeenvaluedbyJPWInternationalLtd,PropertySurveyor,anindependent professionallyqualifiedvaluer,atRs.25,000,000attheiropenmarketvalueonMarch2,2005.Thedirectorsconsider the cost of the properties of the subsidiary company amounting to Rs.257,731,000 (2011: Rs.257,731,000) to

representitsfairvalue.

Thedirectorsconsiderthecarryingamountsofinvestmentpropertiestorepresenttheirfairvalue.

(b) RentalincomefromthepropertiesamountedtoRs.37,224,000(2011:Rs.36,201,000)fortheGroupandRs.3,118,000(2011: Rs.2,914,000) for the Company. Direct operating expenses arising on the investment properties wereRs.3,834,000(2011:Rs.3,963,000)fortheGroupandRs.nil(2011:nil)fortheCompany.

7 INTANGIBLEASSETS TheGroup

Computer Software Goodwill Total Rs’000 Rs’000 Rs’000

(a) COST AtJuly1,2011 8,532 21,416 29,948 Additions 115 - 115 Disposals (490) - (490)

AtJune30,2012 8,157 21,416 29,573

AMORTISATION AtJuly1,2011 6,195 7,007 13,202 Amortisationchargefortheyear 1,233 - 1,233 Disposaladjustments (490) - (490)

AtJune30,2012 6,938 7,007 13,945

NETBOOKVALUE AtJune30,2012 1,219 14,409 15,628



7 INTANGIBLEASSETS(continued)

TheGroup

Computer Software Goodwill Total Rs’000 Rs’000 Rs’000

(a) COST AtJuly1,2010 8,055 21,416 29,471 Additions 483 - 483 Disposals (6) - (6)

AtJune30,2011 8,532 21,416 29,948

AMORTISATION AtJuly1,2010 4,781 7,007 11,788 Amortisationchargefortheyear 1,418 - 1,418 Disposaladjustments (4) - (4)

AtJune30,2011 6,195 7,007 13,202

NETBOOKVALUE AtJune30,2011 2,337 14,409 16,746

(c) Amortisationchargehasbeenchargedinoperatingexpenses.

(d) Impairment test for goodwill: goodwill is allocated to the Company’s Cash-Generating Units (CGU’s) identifiedaccordingtothecountryofincorporationandbusinesssegment.

Theaggregatecarryingamountsofgoodwillallocatedtoeachcashgeneratingunitareasfollows:

2012 2011 Rs’000 Rs’000

Tourism-ConcordeTouristGuideAgencyLimited 174 174 Tourism-SouthernInvestmentsLimited 12,511 12,511 Commerce-CompagnieMauriciennedeCommerceLimitée 1,724 1,724

14,409 14,409

AllabovecompaniesareincorporatedinMauritius.

8 INVESTMENTSINSUBSIDIARIES

TheHoldingCompany

2012&2011 Rs’000

(a) AtJune30,2011&June30,2012 76,609



8 INVESTMENTSINSUBSIDIARIES(continued)

(b) Thesubsidiariesareasfollows:

Classof Stated EffectiveShareholding Mainbusiness sharesheld Type Capital 2012 2011 Rs’000 % %

Saleoftyresand CompagnieMauricienne theholdingof deCommerceLimitée investmentproperty Ordinary Direct 10,000 89.5 89.5

Productionandsale MédineDistillery ofalcohol CompanyLimited andvinegar Ordinary Direct 21,598 66.7 66.7

ConcordeTourist Provisionof GuideAgency travelandtourism Limited services Ordinary Direct 7,766 50.2 50.2

SouthernInvestments Operatesahotel Limited resort Ordinary Indirect 94 25.1 25.1

Theyearendofalltheabovesubsidiaries,whichareallincorporatedinMauritius,isJune30.

9 INVESTMENTSINASSOCIATES

2012 2011 Rs’000 Rs’000(a) TheGroup

AtJuly1, 202,463 180,145 Shareofprofitaftertax 55,424 48,047 Shareofdividends (38,150) (24,502) Shareofcurrencytranslationreserve-Group(note17) (2,114) (960) -Non-controllinginterests (587) (267)

AtJune30, 217,036 202,463

(b) TheHoldingCompany

2012&2011 Rs’000 Cost

AtJune30,2011&June30,2012 73,697

Theprincipalassociatedcompaniesareasfollows:

Countryof EffectiveShareholding Nameofcompany Yearend incorporation Type 2012 2011 % %

GoodwealLtd June30,2012 Mauritius Direct 50.00 50.00 DistilleriedeBoisRougeLimitée June30,2012 Mauritius Direct 33.33 33.33 InternationalDistillers (Mauritius)Limited June30,2012 Mauritius Direct 50.00 50.00 AnytimeInvestmentLtd June30,2012 Mauritius Direct 24.50 24.50 NewFabulousInvestmentLtd June30,2012 Mauritius Direct 24.50 24.50 NewGoodwillCo.Ltd June30,2012 Mauritius Direct 33.33 33.33 VoyagesRéunion(Havas) June30,2012 RéunionIsland Direct 17.02 17.02 EcoTourisme(Rodrigues)Co.Ltd June30,2012 Mauritius Direct 14.05 14.05 MecomAutomotiveLimited June30,2012 Mauritius Direct 22.34 22.34



9 INVESTMENTSINASSOCIATES(continued)

(b) TheHoldingCompany(continued)

TheGroup’sshareoftheresultofitsprincipalassociates,allofwhichareunlistedanditsaggregatedassets(includinggoodwill)andliabilities,areasfollows:

Shareof Nameofcompany Assets Liabilities Revenues Profit/(Loss) Rs’000 Rs’000 Rs’000 Rs’000

June30,2012

GoodwealLtd 40 20 30 1 DistilleriedeBoisRougeLimitée 2,616 550 - - InternationalDistillers(Mauritius)Limited 238,204 38,169 456,264 28,542 AnytimeInvestmentLtd 22,881 227 14,089 3,362 NewFabulousInvestmentLtd 22,881 227 14,089 3,362 NewGoodwillCo.Ltd 178,899 89,591 1,317,020 11,123 VoyagesRéunion(Havas) 581,320 338,160 475,360 9,034

1,046,841 466,944 2,276,852 55,424

Shareof Nameofcompany Assets Liabilities Revenues Profit/(Loss) Rs’000 Rs’000 Rs’000 Rs’000

June30,2011

GoodwealLtd 38 17 30 2 DistilleriedeBoisRougeLimitée 2,616 550 - - InternationalDistillers(Mauritius)Limited 229,720 41,879 386,972 25,754 AnytimeInvestmentLtd 20,622 296 14,131 3,423 NewFabulousInvestmentLtd 20,622 296 14,131 3,423 NewGoodwillCo.Ltd 154,153 72,667 973,836 8,769 VoyagesRéunion(Havas) 581,320 338,160 475,360 6,676

1,009,091 453,865 1,864,460 48,047

(c) InvestmentsinassociatesatJune30,2012includegoodwillofRs.30,269,174(2011:Rs.30,269,174).

(d) Lossesfortheyearnotrecognisedwereasfollows:

2012 2011 Rs’000 Rs’000

DistilleriedeBoisRougeLimitée - -

Accumulatedlossesnotrecognisedwereasfollows:

2012 2011 Rs’000 Rs’000

DistilleriedeBoisRougeLimitée 375 375 EcoTourisme(Rodrigues)Co.Ltd&MecomAutomotiveLimited 4,317 4,317

(e) Both,MecomAutomotiveLimitedandEcoTourisme(Rodrigues)Co.Ltd,areintheprocessofliquidation.



10 INVESTMENTSINAVAILABLE-FOR-SALEFINANCIALASSETS

TheGroupand TheHoldingCompany

2012 2011 Rs’000 Rs’000

(a) Available-for-saleinvestments

AtJuly1, 664,646 430,376 Additions 14,750 70,061 Disposals (1,559) - Increaseinfairvalue(note17) 33,290 164,209

AtJune30, 711,127 664,646

Analysedasfollows: Non-current 711,127 664,646 Current - -

711,127 664,646

(b) Equitysecuritiesatfairvalue:


2012 2011 Rs’000 Rs’000

Listed 373,504 448,598 DEM 54,676 51,518 Unquoted 282,947 164,530

711,127 664,646

(c) AtJune30,2012 Level1 Level3 Total Rs’000 Rs’000 Rs’000

TheGroupandTheHoldingCompany

Available-for-salefinancialassets 428,180 282,947 711,127

(d) Thefairvalueoflistedorquotedavailable-for-salesecuritiesisbasedontheStockExchangeorDEMquotedpricesatthecloseofbusinessattheendofthereportingperiod.Therewerenotransfersbetweenlevel1andlevel3intheperiod.Forfairvaluemeasurementinlevel3,therewerenopurchasesandsalesintheperiod.

Inassessingthefairvalueofunquotedavailable-for-salesecurities,theGroupusesmainlythenetassetsbasisandthedividendbasisandmakesassumptionsthatarebasedonmarketconditionsexistingattheendofeachreportingperiod.

(e) Analysisofunquotedinvestments: TheGroupand TheHoldingCompany

2012 2011 Rs’000 Rs’000

Dividendbasis 12,028 10,196 Netassetsbasis 270,919 154,334

Total 282,947 164,530

Themainassumptionusedisasfollows: -Dividendyield 10% 10%



10 INVESTMENTSINAVAILABLE-FOR-SALEFINANCIALASSETS(continued)

Sensitivityanalysis

The tablebelowsummarises the impactof increase/decrease in the fairvalueof theunquoted investmentsonequity.

Theanalysisisbasedontheassumptionthatthefairvalueofunquotedinvestmentshadincreased/decreasedby10%.


2012 2011 Rs’000 Rs’000

Available-for-saleinvestments 28,295 16,453

(f) Thetablebelowshowsthechangesinlevel3instrumentsfortheyearendedJune30,2012. TheGroupand TheHoldingCompany

Rs’000 Available-for-saleinvestments AtJuly1,2011 164,530 Gainrecognisedinothercomprehensiveincome 118,417

AtJune30,2012 282,947

(g) Noneofthefinancialassetsareeitherpastdueorimpaired.

(h) AllsecuritiesaredenominatedinRupee.

11 DEFERREDINCOMETAXES

Deferredincometaxesarecalculatedonalltemporarydifferencesundertheliabilitymethodat15%(2011:15%).

(a) Thereisalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilitiesanddeferredincometaxassetsandliabilitieswhenthedeferredincometaxesrelatetothesamefiscalauthorityonthesameentity.Thefollowingamountsareshowninthestatementsoffinancialposition:


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Deferredincometaxassets (1,745) (1,989) (67) (169) Deferredincometaxliabilities 14,356 12,902 - -

12,611 10,913 (67) (169)

(b) The movement in the deferred tax assets and liabilities during the year, without taking into consideration theoffsettingofbalanceswithinthesamefiscalauthorityonthesameentity,isasfollows:


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

AtJuly1, -Aspreviouslystated 12,384 11,969 (16) (104) -EffectofearlyadoptingIAS19(revised) (1,471) (425) (153) (129)

-Asrestated 10,913 11,544 (169) (233) Charge/(credit)totheincomestatement(note21(c)) 1,551 428 65 97 Charge/(credit)toother comprehensiveincome(note21(c)) 147 (1,059) 37 (33)

AtJune30, 12,611 10,913 (67) (169)



11 DEFERREDINCOMETAXES(continued)

(c) Themovementindeferredtaxassetsandliabilitiesduringtheyear,withouttakingintoconsiderationtheoffsettingofbalanceswithinthesamefiscalauthorityonthesameentity,isasfollows:

(i) TheGroup

Chargedto (Credited)/ Restated thestatement Charged At ofother tothe At July1, comprehensive income June30, 2011 income statement 2012 Rs’000 Rs’000 Rs’000 Rs’000

Deferredincometaxliabilities Acceleratedtaxdepreciation 6,668 - (158) 6,510 Assetsrevaluation 9,232 - - 9,232

15,900 - (158) 15,742

Deferredincometaxassets Taxlossescarriedforward (1,879) - 1,879 - Retirementbenefitobligations (3,108) 147 (170) (3,131)

(4,987) 147 1,709 (3,131)

Netdeferredincometaxliabilities 10,913 147 1,551 12,611

Creditedto (Credited)/ Restated thestatement Charged Restated At ofother tothe At July1, comprehensive income June30, 2010 income statement 2011 Rs’000 Rs’000 Rs’000 Rs’000

Deferredincometaxliabilities Acceleratedtaxdepreciation 7,877 - (1,209) 6,668 Assetsrevaluation 9,232 - - 9,232

17,109 - (1,209) 15,900

Deferredincometaxassets Taxlossescarriedforward (3,605) - 1,726 (1,879) Retirementbenefitobligations (1,960) (1,059) (89) (3,108)

(5,565) (1,059) 1,637 (4,987)

Netdeferredincometaxliabilities 11,544 (1,059) 428 10,913

(ii) TheHoldingCompany

Chargedto thestatement Charged At ofother tothe At July1, comprehensive income June30, 2011 income statement 2012 Rs’000 Rs’000 Rs’000 Rs’000

Deferredincometaxliability Acceleratedtaxdepreciation 447 - 47 494

Deferredtaxasset Retirementbenefitobligations (616) 37 18 (561)

Netdeferredincometaxasset (169) 37 65 (67)



11 DEFERREDINCOMETAXES(continued)

(ii) TheHoldingCompany(continued)

Creditedto thestatement Charged At ofother tothe At July1, comprehensive income June30, 2010 income statement 2011 Rs’000 Rs’000 Rs’000 Rs’000

Deferredincometaxliability Acceleratedtaxdepreciation 364 - 83 447

Deferredtaxasset Retirementbenefitobligations (597) (33) 14 (616)

Netdeferredincometaxasset (233) (33) 97 (169)

12 INVENTORIES TheGroup

2012 2011 Rs’000 Rs’000

(a) Rawmaterials(atcost) 3,515 3,766 Rawmaterials(atnetrealisablevalue) 10,738 12,014 Finishedgoods(atcost) 16,974 14,623 Finishedgoods(atnetrealisablevalue) 24,807 23,353 Consumables(atcost) 1,865 1,806

57,899 55,562 Goodsintransit 2,690 455

60,589 56,017

(b) Thecarryingamountsofrawmaterials,finishedgoodsandconsumablesarearrivedatasfollows:

TheGroup

2012 2011 Rs’000 Rs’000

Atcost 58,499 56,162 Fallinvalue (600) (600)

Atnetrealisablevalue 57,899 55,562

Thefallinvaluehasbeenrecognisedinoperatingexpensesinthestatementofcomprehensiveincome.

(c) Inventorieshavebeenpledgedassecurityforborrowings.

(d) Thecostof inventories recognisedasexpenseand included inoperatingexpensesamounted toRs.196,485,000(2011:Rs.174,180,000).



13 TRADEANDOTHERRECEIVABLES


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

(a) Tradereceivables 100,088 113,738 - - Lessprovisionforimpairment (9,102) (9,102) - -

Tradereceivables-net 90,986 104,636 - - Dividendsreceivable 4,128 4,800 4,128 4,800 Taxpaidinadvance 401 - - - Otherreceivablesandprepayments 49,759 37,263 737 849 Receivablesfromrelatedparties 47,234 27,077 32,416 9,161

192,508 173,776 37,281 14,810

(b) Thecarryingamountsoftradeandotherreceivablesapproximatetheirfairvalue.

(c) Asat June30,2012, trade receivablesofRs.9,302,000 (2011:Rs.10,620,000) for theGroupwere impaired. Theamount of the provision was Rs.9,102,000 as of June 30, 2012 (2011: Rs.9,102,000). The individually impairedreceivablesmainlyrelatetocustomers,whichareinunexpectedlydifficulteconomicsituation.Itwasassessedthataportionofthesereceivablesisexpectedtoberecovered.

Theageingofthesereceivablesisasfollows:

TheGroup

2012 2011 Rs’000 Rs’000

Lessthan3months - 497 3to6months 558 1,020 Over6months 8,744 9,103

9,302 10,620

(d) AsatJune30,2012,tradereceivablesofRs.17,547,000(2011:Rs.12,129,000)fortheGroupwerepastduebutnotimpaired.Theserelatetoanumberofindependentcustomersforwhomthereisnorecenthistoryofdefault.

Theageinganalysisofthesetradereceivablesisasfollows:

TheGroup

2012 2011 Rs’000 Rs’000

3to6months 14,456 8,203 Over6months 3,091 3,926

17,547 12,129

(e) ThecarryingamountsoftheGroup’stradeandotherreceivablesaredenominatedinthefollowingcurrencies:


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Rupee 156,284 128,153 37,281 14,810 Euro 30,523 44,730 - - USDollar 4,413 136 - - GBP 677 702 - - ZAR 611 55 - -

192,508 173,776 37,281 14,810



13 TRADEANDOTHERRECEIVABLES(continued)

(f) Themovementontheprovisionforimpairmentoftradereceivablesareasfollows:

TheGroup

2012 2011 Rs’000 Rs’000

AtJuly1, 9,102 8,392 Provisionforreceivableimpairment - 1,209 Netunusedprovisionforreceivableimpairmentreversed - (499)

AtJune30, 9,102 9,102

(g) Theotherclasseswithintradeandotherreceivablesdonotcontainimpairedassets.

(h) Themaximumexposuretocreditriskatthereportingdateisthefairvalueofeachclassofreceivablementionedabove.TheGroupdonotholdanycollateralassecurity.

14 AMOUNTSRECEIVABLEFROMGROUPCOMPANIES TheHoldingCompany

2012 2011 Rs’000 Rs’000

Currentaccounts -Subsidiaries 50,000 69,366

Thecarryingamountsofamountsreceivablefromgroupcompaniesapproximatetheirfairvalue.

15 CASHANDCASHEQUIVALENTS


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

(a) Cashandbankbalances 45,919 34,654 995 913

(b) Cashandcashequivalentsandbankoverdraftsincludethefollowingforthepurposeofthestatementofcashflows:


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Cashandbankbalances 45,919 34,654 995 913 Bankoverdrafts(note18) (25,273) (23,182) - -

20,646 11,472 995 913

(c) Noncashtransactions

Theprincipalnon-cashtransactionsaretheacquisitionofmotorvehiclesusingfinanceleases(note5).


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Property,plantandequipment(note5) 16,915 14,985 - - Acquiredusingfinancelease (813) - - -

Acquiredusingownfund 16,102 14,985 - -



16 SHARECAPITAL

2012&2011 Rs’000

Authorised

150,000,000ordinarysharesofRe.1each 150,000

Issuedandfullypaid

121,453,252ordinarysharesofRe.1each 121,453

Allsharesissuedarefullypaid.

17 REVALUATIONSURPLUSANDOTHERRESERVES

TheGroup Currency Fairvalue Revaluation translation Actuarial reserves surplus reserves (loss)/gain Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 AtJuly1,2011 -Aspreviouslystated 517,911 13,142 2,459 - 533,512 -EffectofearlyadoptingIAS19(revised) - - - (5,728) (5,728)

-Asrestated 517,911 13,142 2,459 (5,728) 527,784 Increaseinfairvalueof available-for-saleinvestments(note10) 33,290 - - - 33,290 Shareofcurrencytranslationfor theyear(note31) - - (2,114) - (2,114) Remeasurementofretirement benefitobligations(note31) - - - 618 618

BalanceatJune30,2012 551,201 13,142 345 (5,110) 559,578

Fairvalue Revaluation translation Actuarial reserves surplus reserves (loss)/gain Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

AtJuly1,2010 -Aspreviouslystated 353,702 13,142 3,419 - 370,263 -EffectofearlyadoptingIAS19(revised) - - - (1,429) (1,429)

-Asrestated 353,702 13,142 3,419 (1,429) 368,834 Increaseinfairvalueof available-for-saleinvestments(note10) 164,209 - - - 164,209 Shareofcurrencytranslationfor theyear(note31) - - (960) - (960) Remeasurementofretirement benefitobligations(note31) - - - (4,299) (4,299)

BalanceatJune30,2011 517,911 13,142 2,459 (5,728) 527,784



17 REVALUATIONSURPLUSANDOTHERRESERVES(continued)

TheHoldingCompany

Fairvalue Actuarial Total reserves (loss)/gain Equity Rs’000 Rs’000 Rs’000

AtJuly1,2011 -Aspreviouslystated 517,911 - 517,911 -EffectofearlyadoptingIAS19(revised) - (917) (917)

-Asrestated 517,911 (917) 516,994 Increaseinfairvalueofavailable-for-sale

investments(note10) 33,290 - 33,290 Remeasurementofretirementbenefitobligations(note31) - 208 208

BalanceatJune30,2012 551,201 (709) 550,492

AtJuly1,2010 Rs’000 Rs’000 Rs’000 -Aspreviouslystated 353,702 - 353,702 -EffectofearlyadoptingIAS19(revised) - (728) (728)

-Asrestated 353,702 (728) 352,974 Increaseinfairvalueofavailable-for-sale

investments(note10) 164,209 - 164,209 Remeasurementofretirementbenefitobligations(note31) - (189) (189)

BalanceatJune30,2011 517,911 (917) 516,994

(a) Fairvaluereserve-investment

Thefairvaluereserveforinvestmentcomprisesthecumulativenetchangeinfairvalueofavailable-for-salefinancialassetsthathasbeenrecognisedinothercomprehensiveincomeuntiltheinvestmentsarederecognisedorimpaired.

(b) Revaluationsurplus

Therevaluationsurplusrelatestotherevaluationofproperty,plantandequipment.

(c) Currencytranslationreserve

Thecurrencytranslationreserveonconsolidationofassociatecompriseallforeigncurrencydifferencesarisingfromthetranslationoftheinvestmentinandthefinancialstatementsoftheforeignassociate.

(d) Actuarial(loss)/gain

Remeasurementofretirementbenefitobligationscomprisingofactuarialgainsandlosses,theeffectoftheassetceiling(ifapplicable)andthereturnonplanassets(excludinginterest)arerecognisedimmediatelyinthestatementsoffinancialpositionwithachargeorcredittoothercomprehensiveincomeintheperiodinwhichtheyoccur.

18 BORROWINGS TheGroup

2012 2011 Rs’000 Rs’000

Non-current Bankloans(note18(b)) 35,330 46,523 Obligationsunderfinanceleases(note18(a)) 675 285

36,005 46,808

Current Bankoverdrafts(note15&note18(c)) 25,273 23,182 Bankloans 3,402 14,267 9.5%unsecuredloansrepayableatcall 4,724 9,656 Obligationsunderfinanceleases(note18(a)) 446 657

33,845 47,762

Totalborrowings 69,850 94,570

Thebankborrowingsincludesecuredliabilities(leases,bankloansandbankoverdrafts)amountingtoRs.65,126,000(2011:Rs.84,914,000).



18 BORROWINGS(continued)

(a) Financeleaseliabilities-minimumleasepayments: TheGroup

2012 2011 Rs’000 Rs’000

Notlaterthanoneyear 517 735 Laterthanoneyearandnotlaterthantwoyears 198 296 Laterthantwoyearsandnotlaterthanthreeyears 198 - Laterthanthreeyearsandnotlaterthanfiveyears 396 -

1,309 1,031 Futurefinancechargesonfinanceleases (188) (89)

Presentvalueoffinanceleaseliabilities 1,121 942

Thepresentvalueofthefinanceleaseliabilitiesmaybeanalysedasfollows:

2012 2011 Rs’000 Rs’000

Notlaterthanoneyear 446 657 Laterthanoneyearandnotlaterthantwoyears 149 285 Laterthantwoyearsandnotlaterthanthreeyears 162 - Laterthanthreeyearsandnotlaterthanfiveyears 364 -

1,121 942

Leaseliabilitiesareeffectivelysecuredastherightstotheleasedassetsreverttothelessorintheeventofdefault.

Theratesofinterestontheseleasesvarybetween10.50%and12.75%.

TheGroupleasesvariousassetsundernon-cancellablefinanceleaseagreement.TheleasetermsarefiveyearsandtheownershipoftheassetsliewithintheGroup.

(b) Bankloans TheGroup

2012 2011 Rs’000 Rs’000

Repayableafteroneyearandbeforetwoyears 5,359 6,037 Repayableaftertwoyearsandbeforethreeyears 3,599 6,543 Repayableafterthreeyearsandbeforefiveyears 8,026 11,354 Repayableafterfiveyears 18,346 22,589

35,330 46,523

BankborrowingsaresecuredbyfloatingchargesovertheassetsoftheGroup.Theratesofinterestontheseloansvarybetween8.4%and9.13%.

(c) BankoverdraftsaresecuredbyfloatingchargesovertheassetsoftheGroup.Theratesofinterestonthesebankoverdraftsvarybetween9.4%and10.13%.

(d) TheexposureoftheGroup’sborrowingstointerest-ratechangesandthecontractualrepricingdatesareasfollows:

6months 6-12 1-5 Over orless months years 5years Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

Borrowings

AtJune30,2012 69,688 - 162 - 69,850

AtJune30,2011 84,132 - 3,288 7,150 94,570



18 BORROWINGS(continued)

(e) Thecarryingamountsofshort-termborrowingsapproximatetheirfairvalue.

(f) Thecarryingamountsofnon-currentborrowingsarenotmateriallydifferentfromthefairvalue.

(g) Thecarryingamountsofborrowingsaredenominatedinrupee.

19 RETIREMENTBENEFITOBLIGATIONS


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Amountsrecognisedinthestatementsoffinancialposition

Pensionbenefit(note(a)(ii)) 19,560 19,953 3,749 4,105 Otherpostretirementbenefits(note(b)) 1,317 769 - -

20,877 20,722 3,749 4,105

Amountschargedtotheincomestatements

Includedinoperatingexpenses -Pensionbenefits(note(a)(v)) 4,914 4,297 386 393 -Otherpostretirementbenefits(note(b)(i)) 548 60 - -

Total(note29) 5,462 4,357 386 393

Amountschargedtothestatementsofothercomprehensiveincome

Remeasurementofretirementbenefitobligations recognisedinthestatementsofother comprehensiveincome (983) 7,060 (245) 222

(a) Pensionbenefits

(i) TheassetsofthefundareheldindependentlyandadministeredbyTheMCBInvestmentManagementCoLtdandConfidentAssetManagementLtd.

ThemostrecentactuarialvaluationsofplanassetsandthepresentvalueofthedefinedbenefitobligationwerecarriedoutatJune30,2012byAONHewittLtd(ActuarialValuer).Thepresentvalueofthedefinedbenefitobligation,andtherelatedcurrentservicecostandpastservicecost,weremeasuredusingtheProjectedUnitCreditMethod.

(ii) Theamountsrecognisedinthestatementsoffinancialpositionareasfollows:


Restated 2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Presentvalueoffundedobligation 66,760 62,082 3,749 4,105 Fairvalueofplanassets (47,200) (42,129) - -

Liabilityinthestatementsoffinancialposition 19,560 19,953 3,749 4,105



19 RETIREMENTBENEFITOBLIGATIONS(continued)

(iii) Themovementinthepresentvalueoffundedobligationsovertheyearisasfollows:


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

AtJuly1, 62,082 49,754 4,105 3,981 Currentservicecost 3,870 3,196 - - Employeecontributions 73 108 - - Settlementgain (736) - - - Interestcost 6,089 5,156 386 393 Benefitspaid (2,436) (1,337) (497) (491) Liability(gain)/loss (2,182) 5,205 (245) 222

AtJune30, 66,760 62,082 3,749 4,105

(iv) Themovementinthefairvalueofplanassetsovertheyearisasfollows:


Restated Restated 2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

AtJuly1, 42,129 37,384 - - Interestincome 4,309 4,055 - - Employercontributions 4,324 3,774 497 491 Benefitspaid (2,436) (1,337) (497) (491) Employeecontributions 73 108 - - Returnonplanassetsexcludinginterestincome (1,199) (1,855) - -

AtJune30, 47,200 42,129 - -

(v) The amounts recognised in the income statements and the statements of other comprehensive income are asfollows:


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Pastservicecost (736) - - - Currentservicecost 3,870 3,196 - - Netinterestexpense 1,780 1,101 386 393

Componentsofdefinedbenefitcostsrecognisedintheincomestatements 4,914 4,297 386 393

Remeasurementofretirementbenefitobligations(note31):

Returnonplanassets(above)/belowinterestincome 1,199 1,855 - - Liabilityexperience(gain)/loss (2,182) 5,205 (245) 222 Componentsofdefinedbenefitcostsrecognised

inthestatementsofothercomprehensiveincome(note31) (983) 7,060 (245) 222

Totalofdefinedbenefitcost 3,931 11,357 141 615

Thepastservicecost,theservicecostandthenetinterestexpensesfortheyearisincludedinoperatingexpensesintheincomestatements.Theactuarialgain/(loss)onretirementbenefitobligationsisincludedinthestatementsofothercomprehensiveincome.




(vi) Thereconciliationofthenetdefinedbenefitliabilityinthestatementoffinancialpositionisasfollows:


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

AtJuly1, -Aspreviouslystated 10,147 9,535 3,089 3,124 -EffectofearlyadoptingIAS19(revised) 9,806 2,835 1,016 857

-Asrestated 19,953 12,370 4,105 3,981 Amountrecognisedintheincomestatements 4,914 4,297 386 393 Amountrecognisedinthestatementsofother comprehensiveincome (983) 7,060 (245) 222 Employercontribution (4,324) (3,774) (497) (491)

AtJune30, 19,560 19,953 3,749 4,105

(vii) Theallocationofplanassetsattheendofthereportingperiodforeachcategory,areasfollows:


2012 2011 2012 2011

Localequities-quoted 37% 33% - - Localbonds-quoted 18% 18% - - Overseasebonds-quoted 5% 5% - - Overseasequities-quoted 20% 22% - - Properties 18% 22% - - Cashandother 2% 0% - -

TotalMarketvalueofassets 100% 100% - -

(viii)Theprincipalactuarialassumptionsusedforaccountingpurposesareasfollows:


2012 2011 2012 2011

Discountrate 10% 10% 10% 10% Futuresalaryincreases 7% 7% 7% 7% Futurepensionincreases 3% 3% 3% 3% Rateofmedicalcostincreases 10% 10% 10% 10% Averageretirementage(ARA) 60 60 60 60

Averagelifeexpectancyfor: MaleatARA 23.2years 23.2years 23.2years 23.2years FemaleatARA 26.2years 26.2years 26.2years 26.2years

Theweightedaveragedurationofthedefinedbenefitobligationis22.5years.

(ix) The assets of the plan are invested in bonds, equities and properties. The expected return on plan assets wasdeterminedbyconsideringtheexpectedreturnsavailableontheassetsunderlyingthecurrentinvestmentpolicy.

Expectedyieldsonfixedinterestinvestmentsarebasedongrossredemptionyieldsasattheendofthereportingperiod.Expectedreturnsonequityandpropertyinvestmentsreflectlong-termrealratesofreturnexperiencedintherespectivemarkets.


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Actualreturnonplanassets 1,199 1,855 - -




TheHolding TheGroup Company

2012 2012 Rs’000 Rs’000

(x) SensitivityanalysisonDefinedbenefitobligationattheendofthereportingperiod Increaseinbenefitobligationatendofperiodresultingfrom

a1%decreaseindiscountrate 9,834 207 Decreaseinbenefitobligationatendofperiodresultingfrom

a1%increaseindiscountrate 7,819 198

(xi) Expectedcontributionstopost-employmentbenefitplansfortheyearendingJune30,2013isRs.4,125,000fortheGroupandRs.29,000fortheCompany.Thefundingpolicyistopaycontributionstoanexternallegalentitiesattheraterecommendedbytheentity’sactuaries.

(xii) Amountsforthecurrentyearandfourpreviousyearsareasfollows:

TheGroup

Restated Restated 2012 2011 2010 2009 2008 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

Presentvalueofdefined benefitobligation 66,760 62,082 49,754 50,170 46,645 Fairvalueofplanassets (47,200) (42,129) (37,384) (35,808) (34,414)

Deficit 19,560 19,953 12,370 14,362 12,231

TheHoldingCompany

Restated Restated 2012 2011 2010 2009 2008 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Presentvalueofdefined benefitobligation 3,749 4,105 3,981 4,078 4,126 Fairvalueofplanassets - - - - -

Deficit 3,749 4,105 3,981 4,078 4,126

Forpracticalpurpose,theabovefiguresfor2008and2009havenotbeenrestated.

(b) Otherpostretirementbenefits

OtherpostretirementbenefitscomprisemainlyofretirementgratuitypayableundertheEmploymentRightsAct2008andotherbenefits.

(i) MovementinRetirementGratuityareasfollows: TheGroup

2012 2011 Rs’000 Rs’000

AtJuly1, 769 709 Chargedinthestatementofcomprehensiveincome 548 60

AtJune30, 1,317 769

ThetotalchargefortheGrouphasbeenincludedin‘’operatingexpenses’’.

(ii) Ithasbeenassumedthattherateoffuturesalaryincreaseswillbeequaltothediscountrate.



20 TRADEANDOTHERPAYABLES


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Tradepayables 59,154 50,844 - - Accruedexpenses 40,342 27,990 4,314 2,277 Otherpayables 16,576 14,098 4,855 5,091

116,072 92,932 9,169 7,368

Thecarryingamountsoftradeandotherpayablesapproximatetheirfairvalue.

21 CURRENTTAXLIABILITIES


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

(a) Amountshownonthestatementsoffinancialpositionisasfollows:

Currenttaxonadjustedprofitfortheyearended June30,2009 10,189 10,189 1,738 1,738 Underprovisioninpreviousyears 131 131 - - Less:Payments (10,320) (8,999) (1,738) (1,231)

- 1,321 - 507

Currenttaxonadjustedprofitfortheyearended June30,2011 14,040 14,040 1,550 1,550 Less:Payments (14,040) (6,031) (1,550) (1,251)

- 8,009 - 299

Currenttaxonadjustedprofitfortheyearended June30,2012 11,589 - 1,068 - Less:Taxdeductedatsource (21) - (21) - Less:PaymentmadeunderAdvanced

PaymentSystem (9,031) - (1,042) -

2,537 - 5 -

AmountdueatJune30, 2,537 9,330 5 806

Analysedasfollows:

Tradeandotherreceivables -Taxpaidinadvance(note13) (401) - - - Currenttaxliabilities 2,938 9,330 5 806

2,537 9,330 5 806



(b) Currenttaxontheadjustedprofitfortheyear at15%(2011:15%) 11,589 14,040 1,068 1,550 Deferredtaxchargetotheincomestatement(note31) 1,551 428 65 97 Deferredtaxcharge/(credit)toother comprehensiveincome(note31) 147 (1,059) 37 (33)

13,287 13,409 1,170 1,614



21 CURRENTTAXLIABILITIES(continued)

(c) Thetaxonthegroup’sandthecompany’sprofitbeforetaxdiffersfromthetheoreticalamountthatwouldariseusingthebasictaxrateasfollows:



Profitbeforetax 172,950 168,177 95,305 66,840

Taxcalculatedat15%(2011:15%) 25,943 25,227 14,296 10,026 Incomenotsubjecttotax (9,245) (10,545) (12,072) (9,060) Expensesnotdeductiblefortaxpurposes 1,160 1,434 604 611 Excessofcapitalallowancesoverdepreciation - - (17) - Excessofdepreciationovercapitalallowances 414 1,396 - 17 Utilisationoftaxlossesbroughtforward (1,879) (1,726) - - Othertaxallowances (4,804) (1,746) (1,743) (44)

Currenttaxcharge 11,589 14,040 1,068 1,550 Deferredtaxcharge(note11) 1,551 428 65 97

Chargetoincomestatement 13,140 14,468 1,133 1,647 Chargetoothercomprehensiveincome Deferredtaxcharge/(credit)(notes11and31) 147 (1,059) 37 (33)

13,287 13,409 1,170 1,614

Furtherinformationaboutdeferredtaxispresentedinnote11.

22 TURNOVER


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Theanalysisofturnoverisasfollows: Salesofgoods 146,090 127,286 - - Salesofservices 365,060 366,905 - - Dividendincome -Subsidiaries - - 24,494 18,803 -Associates - - 36,919 23,357 -Others 22,878 19,940 20,584 19,940 Rentfrominvestmentproperties 37,224 36,201 3,118 2,914

571,252 550,332 85,115 65,014

Therearenotransactionswithasingleexternalcustomerthataccountsfor10%ormoreoftheGroup’stotalrevenue.



23 EXPENSESBYNATURE


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Depreciationandamortisation 28,399 27,589 197 441 Employeebenefitexpense(note29) 87,437 78,710 386 393 Tourexpenses 31,097 35,396 - - Costofinventoriesrecognisedasexpense 196,485 174,180 - - Steam,furnaceoil,electricityandwater 24,036 20,727 - - Directoperatingexpensesforinvestmentproperties 3,834 3,963 - - Otheroperatingexpenses 9,811 14,386 - - Motorvehiclesrunningexpenses 12,116 11,775 - - Repairsandmaintenance 8,677 8,181 - - Rentalcharges 3,404 3,399 - - Insurance 3,354 3,009 - - Marketing,advertising,overseas marketingandpromotionexpenses 13,525 18,439 - - Administrativeexpenses 18,034 12,349 - - Otherexpenses 32,508 25,911 6,686 4,605

Operatingexpenses 472,717 438,014 7,269 5,439

24 OTHERINCOME


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Managementfees 620 500 - - Profitondisposalofproperty,plant&equipment 1,308 367 - - Profitondisposalofinvestmentinfinancialassets 11,622 - 11,622 - Interestincome 3,565 1,679 5,660 7,197 Sundryincome 177 2,637 177 75 Other 1,809 - - -

19,101 5,183 17,459 7,272

25 OTHER(LOSSES)/GAINS


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Netforeignexchange(loss)/gainonoperations(note27) (338) 3,256 - -



26 FINANCEREVENUE/(COSTS)-NET


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Netforeignexchangegainonfinancingactivities(note27) 5,668 5,496 - -

Interestexpense:

Bankoverdrafts (571) (972) - (7) Bankandotherloansrepayablebyinstalments -betweenonetofiveyears (1,534) (3,015) - - Financeleases (78) (175) - - Otherloansnotrepayablebyinstalments (3,257) (1,961) - -

(5,440) (6,123) - (7)

Financerevenue/(costs)-net 228 (627) - (7)

27 NETFOREIGNEXCHANGEGAINS/(LOSSES)


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Other(losses)/gains(Note25) (338) 3,256 - - Financecosts(Note26) 5,668 5,496 - -

5,330 8,752 - -

28 PROFITBEFORETAXATION


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Profitbeforetaxationisarrivedatafter:

crediting:

Rentfromproperty 37,224 36,201 3,118 2,914 Profitondisposalofproperty,plantandequipment 1,308 367 - - Profitondisposalofinvestmentinfinancialassets 11,622 - 11,622 -

charging:

Depreciation(note5) -ownedassets 23,348 22,882 197 441 -leasedassets 3,818 3,289 - - Amortisationofintangibleassets 1,233 1,418 - - Provisionforreceivableimpairment - 1,209 - - Lossonassetsscrapped - 345 - - Lossondisposalofproperty,plantandequipment - 10 - - Employeebenefitexpense(note29) 87,437 78,710 386 393 Costofinventoriesrecognisedasexpense 196,485 174,180 - -



29 EMPLOYEEBENEFITEXPENSE


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Salariesandwages 76,399 69,703 - - Pensioncosts(note19) 5,462 4,357 386 393 Pensioncosts-definedcontributionplan 422 382 - - Socialsecuritycosts 5,154 4,268 - -

87,437 78,710 386 393

30 DIVIDENDSPERSHARE

TheHoldingCompany

2012 2011 Rs’000 Rs’000

Amountsrecognisedasdistributionstoequityholdersintheyear: AtJuly1, 42,508 -

Proposed

FinaldividendfortheyearendedJune30,2010ofRe.0.15pershare proposedonAugust11,2010andpaidonSeptember15,2011 - 18,218 InterimdividendfortheyearendedJune30,2011ofRe.0.30pershare proposedonDecember22,2010andpaidonJanuary17,2011 - 36,437 FinaldividendfortheyearendedJune30,2011ofRe.0.35pershareproposedon June30,2011andpaidonSeptember15,2011 - 42,508 InterimdividendfortheyearendedJune30,2012ofRe.0.30pershare proposedonFebruary15,2012andpaidonMarch30,2012(2011:Re.0.30) 36,437 - FinaldividendfortheyearendedJune30,2012ofRe.0.35pershareproposedon June29,2012andpayableonSeptember14,2012(2011:Re.0.35) 42,508 -

78,945 97,163 Paid

FinaldividendfortheyearendedJune30,2010ofRe.0.15pershare proposedonAugust11,2010andpaidonSeptember15,2011 - (18,218) InterimdividendfortheyearendedJune30,2011ofRe.0.30pershare proposedonDecember22,2010andpaidonJanuary17,2011 - (36,437) FinaldividendfortheyearendedJune30,2011ofRe.0.35pershareproposedon June30,2011andpaidonSeptember15,2011 (42,508) - InterimdividendfortheyearendedJune30,2012ofRe.0.30pershare proposedonFebruary15,2012andpaidonMarch30,2012 (36,437) -

(78,945) (54,655)

AmountdueatJune30, 42,508 42,508



31 OTHERCOMPREHENSIVEINCOME

Available- Retirement for-sale Translation benefit fairvalue offoreign TheGroup Note obligation reserve operation Rs’000 Rs’000 Rs’000

Increaseinfairvalueofavailable-for-saleinvestments 10 - 33,290 - Shareofcurrencytranslationreserveon consolidationofassociates 9 - - (2,701) Remeasurementofretirementbenefitobligations 19 983 - - Deferredtaxonremeasurementofretirement benefitobligations 21(c) (147) - -

Othercomprehensiveincomefortheyear2012 836 33,290 (2,701)

Other comprehensive income attributable to: -Ownersoftheparent 618 33,290 (2,114) -Non-controllinginterests 218 - (587)

836 33,290 (2,701)

Increaseinfairvalueofavailable-for-saleinvestments 10 - 164,209 - Shareofcurrencytranslationreserve onconsolidationofassociates 9 - - (1,227) Remeasurementofretirementbenefitobligations 19 (7,060) - - Deferredtaxonremeasurementofretirement benefitobligations 21(c) 1,059 - -

Othercomprehensiveincomefortheyear2011 (6,001) 164,209 (1,227) Other comprehensive income attributable to:

-Ownersoftheparent (4,299) 164,209 (960) -Non-controllinginterests (1,702) - (267)

(6,001) 164,209 (1,227)

Available- Retirement for-sale benefit fairvalue TheHoldingCompany Note obligation reserve Rs’000 Rs’000

Increaseinfairvalueofavailable-for-saleinvestments 10 - 33,290 Remeasurementofretirementbenefitsobligations 19 245 - Deferredtaxonremeasurementofretirement benefitobligations 21(c) (37) -

Othercomprehensiveincomefortheyear2012 208 33,290

Available- Retirement for-sale benefit fairvalue Note obligation reserve Rs’000 Rs’000

Increaseinfairvalueofavailable-for-saleinvestments 10 - 164,209 Remeasurementofretirementbenefitsobligations 19 (222) - Deferredtaxonremeasurementofretirementbenefitobligations 21(c) 33 -

Othercomprehensiveincomefortheyear2011 (189) 164,209



32 EARNINGSPERSHARE


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Profitattributabletoownersoftheparentis 129,671 122,491 94,172 65,193

Numberofordinarysharesinissue(sharesofRe.1each)(note16)‘000 121,453 121,453 121,453 121,453

EarningspersharefromcontinuingoperationsRs 1.07 1.01 0.78 0.54

33 CONTINGENTLIABILITIES

AnactionhasbeenenteredinCourtbypreviousdistillersclaimingdamagesforpurportedbreachofcontract.ThedirectorsbelievethattheclaimenteredintoagainstthecompanyiscontrarytotheFairTradingActandthereforenoprovisioniswarrantedforthetimebeing.

34 COMMITMENTS


2012 2011 Rs’000 Rs’000

(a) Capitalcommitments

Capitalexpenditurecontractedforattheendofthereportingperiodbutnotyetincurredisasfollows:

-Property,plant&equipment - 124

TheGroup

2012 2011 Rs’000 Rs’000

(b) Thefutureminimumleasepaymentreceivableundernoncancellableoperatingleasesareasfollows:

Notlaterthan1year 12,694 28,255 Laterthan1yearandbefore5years 3,807 10,914 Laterthan5years - -

16,501 39,169

TheGroupleasesvariousoutlets,officesandparkingundernon-cancellableoperatingleaseagreements.

Theleaseshavevaryingterms,escalationclausesandrenewalrights.

(c) Thefutureaggregateminimumleasepaymentsundernon-cancellableoperatingleasesareasfollows:

TheGroup

2012 2011 Rs’000 Rs’000

Notlaterthan1year 300 300 Laterthan1yearandbefore5years 900 1,200 Laterthanfiveyears - 300

1,200 1,800



34 COMMITMENTS(continued)

TheGroupleaseslandunderanon-cancellableoperatingleaseagreementonthefollowingtermsandconditions:

(i) TheannualrentalfortheleasedlandisRs.300,000.

(ii) Theleasewillexpireon30June2017andisrenewablethereafterattheoptionoftheCompanyforthreeconsecutiveperiodsof10yearseach.

(iii) Thelessorhasreservedtherighttorevisetherentateachsubsequentrenewaltoreflectthemarketrentalvalue.

35 RELATEDPARTYTRANSACTIONS

(a) TheGroup Other Enterprise Holding Fellow shareholders withcommon company subsidiaries ofsubsidiaries shareholder Rs’000 Rs’000 Rs’000 Rs’000

June30,2012

Salesofgoods - 2,540 157,658 8,491 Purchasesofgoods 2,998 6,109 1,611 9,092 Loansrefunded 19,000 8,000 - - Loansreceived - - - - Managementservices - - 1,500 2,382 Amountowedbyrelatedparties 5,940 102 645 46,589 Amountowedtorelatedparties 50,000 69 - 5,007 Interestexpense - 4,760 - - Interestincome 4,760 - - 1,570

Other Enterprise TheGroup Holding Fellow shareholders withcommon company subsidiaries ofsubsidiaries shareholder Rs’000 Rs’000 Rs’000 Rs’000

June30,2011

Salesofgoods - 1,999 164,247 10,909 Purchasesofgoods 3,118 2,846 822 8,922 Loansrefunded 47,000 - - 40 Loansreceived - - - 40 Managementservices - - - 2,321 Amountowedbyrelatedparties 368 8,667 - 27,077 Amountowedtorelatedparties 69,000 8,057 - 854 Interestexpense - 6,736 - - Interestincome 6,736 - - 713

Enterpriseswith(b) TheHoldingCompany commonshareholders

2012 2011 Rs’000 Rs’000

Loansgranted - - Loansrecalled 19,000 - Managementservices 412 471 Amountowedbyrelatedparties 82,416 78,527 Amountowedtorelatedparties 2,030 - Interestincome 5,660 7,129



35 RELATEDPARTYTRANSACTIONS(continued)

(c) Termsandconditionsoftransactionwithrelatedparties

Theabovetransactionshavebeenmadeatarm’slength,onnormalcommercialtermsandintheordinarycourseofbusiness.Theamountowedto/byrelatedpartiesareunsecured,carriedinterestrateof9.5%andsettlementoccursincash.Therehasbeennoguaranteesprovidedorreceivedforanyrelatedpartyreceivablesorpayables.FortheyearendedJune30,2012,theGrouphasnotrecordedanyimpairmentofreceivablesrelatingtoamountsowedbyrelatedparties.Thisassessmentisundertakeneachfinancialyearthroughexaminingthefinancialpositionoftherelatedpartyandthemarketinwhichtherelatedpartyoperates.

(d) KeyManagementPersonnelCompensation


2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Salariesandshort-termemployeebenefits 15,917 13,297 310 220 Post-employmentbenefits 919 848 - -

16,836 14,145 - 220

36 SEGMENTINFORMATION

Segmentinformationpresentedrelatetooperatingsegmentsthatengageinbusinessactivitiesforwhichrevenuesare earned and expenses incurred. On the basis of organization and the types and products and services, thereportablesegmentshavebeenclassifiedasfollows:

(i) Investments–Investmentsheldinshares;

(ii) Propertyrental;

(iii) Beverages–Production,importandsaleofalcoholicproducts;

(iv) Commerce–Importanddistributionoftyres,automotivelubricantsandfireprotectionequipment;and

(iv) Tourism–Operatesahotelandprovidestravelandtourismservices.

(a) Segmentresults

TheGroup

Property Yearended Investments Rental Beverages Commerce Tourism Unallocated Eliminations Total June30,2012 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

Revenues 85,115 37,224 175,444 146,090 189,505 - (62,126) 571,252

Segmentresult 77,848 34,106 36,607 31,137 23,244 17,459 (103,103) 117,298 Shareofprofitofassociates - - 46,390 - 9,034 - - 55,424

77,848 34,106 82,997 31,137 32,278 17,459 (103,103) 172,722

Financerevenue 228

Profitbeforetax 172,950 Tax (13,140)

Profitfortheyear 159,810

Attributableto: -Ownersoftheparent 129,671 -Non-controllinginterests 30,139

159,810



36 SEGMENTINFORMATION(continued)

(a) Segmentresults(continued)

TheGroup Property Yearended Investments Rental Beverages Commerce Tourism Unallocated Total June30,2012 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

SegmentAssets 798,211 279,695 164,743 100,891 232,224 - 1,575,764 Associates - - 211,762 - 5,274 - 217,036 UnallocatedCorporateAssets - - - - - 10,034 10,034

1,802,834

SegmentLiabilities - - 39,430 18,038 50,120 - 107,588 UnallocatedCorporateLiabilities - - - - - 159,013 159,013

266,601

Capitalexpenditure - - 6,598 2,093 8,339 - 17,030 Depreciation - - 8,309 3,330 15,330 197 27,166 Amortisation - - 119 346 768 - 1,233

Property Yearended Investments Rental Beverages Commerce Tourism Unallocated Eliminations Total June30,2011 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

Revenues 65,014 36,202 175,363 127,286 190,996 - (44,529) 550,332

Segmentresult 59,835 33,286 45,948 34,141 25,269 7,272 (84,994) 120,757 Shareofprofitofassociates - - 41,371 - 6,676 - - 48,047

59,835 33,286 87,319 34,141 31,945 7,272 (84,994) 168,804

Financecosts (627)

Profitbeforetax 168,177 Tax (14,468)

Profitfortheyear 153,709

Attributableto:

-Ownersoftheparent 122,491 -Non-controllinginterests 31,218

153,709

Property Investments Rental Beverages Commerce Tourism Unallocated Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

SegmentAssets 741,041 279,696 142,173 97,448 276,461 - 1,536,819 Associates - - 197,189 - 5,274 - 202,463 UnallocatedCorporateAssets - - - - - (20,388) (20,388)

1,718,894

SegmentLiabilities - - 21,936 14,358 59,016 - 95,310 UnallocatedCorporateLiabilities - - - - - 177,654 177,654

272,964

Capitalexpenditure - - 6,657 3,898 4,430 483 15,468 Depreciation - - 7,692 3,116 14,922 441 26,171 Amortisation - - - - 1,418 - 1,418



36 SEGMENTINFORMATION(continued)

(a) Segmentresults(continued)

Theaccountingpolicies of theoperating segments are the sameas thosedescribed in theprincipal accountingpoliciesadoptedbytheGroupandlistedinnote2inthenotestothefinancialstatements.

Unallocatedcostsrepresentcorporateexpenses.Segmentassetsconsistprimarilyofproperty,plantandequipment,investmentproperty, intangibleassets, inventories,receivablesandshareof investmentinassociatedcompaniesandexcludeotherinvestmentsandcashandcashequivalents.

Segmentliabilitiescompriseoperatingliabilitiesandexcludeitemssuchastaxationandcertaincorporateborrowings.Capitalexpenditurecomprisesadditionstoproperty,plantandequipment,andintangibleassets.

CertainrevenueshavebeeneliminatedfromthetotalrevenuesgeneratedbyallthereportablesegmentstoarriveattherevenuefortheGroup.Theseeliminatedtransactionsareinrespectoftransactionsbetweenthereportablesegments.ThenetrevenuesdisclosedbytheGrouphencerepresenttherevenuesderivedfromexternalcustomers.

(b) Geographicalinformation

Non-currentassets Profitfortheyear

2012 2011 2012 2011 Rs’000 Rs’000 Rs’000 Rs’000

Mauritius 1,437,439 1,397,490 150,776 147,033 ReunionIsland 66,379 56,957 9,034 6,676

Total 1,503,818 1,454,447 159,810 153,709


NOTICEOFANNUALMEETINGOFSHAREHOLDERS

Noticeisherebygiventhatthe38thAnnualMeetingoftheshareholdersofthecompanywillbeheldat11thFloor,MedineMews,4ChausséeStreet,PortLouisonFriday14December2012at11.00a.m.

Agenda

1. Toreceive,considerandapprovetheauditedfinancialstatementsfortheyearended30June2012,thedirectors’annualreportandtheauditors’reportthereon.

2. ToreappointMr.PierreDogerdeSpévilleasdirectorofthecompanyuntilthenextannualmeetingincompliancewithsection138(6)oftheCompaniesAct2001.

3. ToreappointMr.GéraldLincolnasdirectorofthecompanyuntilthenextannualmeetingincompliancewithsection138(6)oftheCompaniesAct2001.

4. ToreappointMessrs.BDO&Coasauditorsforthefinancialyearendingon30June2013andauthorisetheBoardofDirectorstofixtheirremuneration.

Amemberof the Companymayappoint a proxy toattendandvoteat themeetingonhis behalf. The instrumentappointingtheproxymustbedepositedattheregisteredofficeoftheCompanynotlessthantwenty-fourhoursbeforethemeeting.

ByOrderoftheBoard

PatriciaGoder

CompanySecretary

29November2012


PROXYFORM-ExcelsiorUnitedDevelopmentCompaniesLimited

I/We(BlockCapitals,please)

beingamember/membersoftheabove-namedCompany,herebyappoint

of

orfailinghim

of

asmy/ourproxytovoteforme/usandonmy/ourbehalfattheAnnualMeetingoftheShareholdersoftheCompanytobeheldonFriday14December2012at11.00a.mandatanyadjournmentthereof.

Signedthisdayof2012

Signature

PleaseindicatewithanXinthespacesbelowhowyouwishyourvotestobecast.

FOR AGAINST

RESOLUTION1 Toreceive,considerandapprovetheauditedfinancialstatements for theyearended30June2012,thedirectors’annualreportandtheauditors’reportthereon.

RESOLUTION2 ToreappointMr.PierreDogerdeSpévilleasdirectorofthecompanyuntilthenextannualmeetingincompliancewithsection138(6)oftheCompaniesAct2001.

RESOLUTION3 ToreappointMr.GéraldLincolnasdirectorofthecompanyuntilthenextannualmeetingincompliancewithsection138(6)oftheCompaniesAct2001.

RESOLUTION4 To reappoint Messrs. BDO & Co as auditors for the financial year ending on30June2013andauthorisetheBoardofDirectorstofixtheirremuneration.

Notes

1. Amembermayappointaproxyofhisownchoice.

2. Iftheappointorisacorporation,thisformmustbeunderitscommonsealorunderthehandofsomeofficerorattorneydulyauthorisedinthatbehalf.

3. Inthecaseofjointholders,thesignatureofanyoneholderwillbesufficient,butthenamesofallthejointholdersshouldbestated.

4. Ifthisformisreturnedwithoutanyindicationastohowthepersonappointedproxyshallvote,hewillexercisehisdiscretionastohowhevotesorwhetherheabstainsfromvoting.

5. Tobevalid, this formmustbecompletedanddepositedat the registeredofficeof theCompanynot less thantwenty-fourhoursbeforethetimefixedforholdingthemeetingoradjournedmeeting.


NOTES

Chairman’s Statement 3

Chief Executive’s Review 5-10

Segmental Analysis 11

Group Value-Added Statement 12

Corporate Information 13

Board of Directors 14

Board Profile 15

Senior Management Profile 16

Directors of Subsidiary Companies 17

Corporate Governance Report 19-31

Statutory Disclosures 32-33

Secretary’s Certificate 34

Independent Auditors’ Report 35

Statements of Financial Position 37

Statements of Comprehensive Income 38

Statements of Changes in Equity 39-40

Statements of Cash Flows 41

Notes to the Financial Statements 42-87

Notice of Annual Meeting 88

Proxy Form 89

Contents

ANNUAL REPORT 2012

11th Floor, Medine Mews4 Chaussée Street, Port LouisMauritius

T +230 211 6101F +230 211 6173E [email protected]

ExcELsiOR UNiTEd dEvELOPmENT cOmPANiEs LimiTEd

ExcELsiOR U

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dEvELO

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RT 2012

annual report 2012 - eudcos · 2019. 8. 19. · annual report 2012 11th floor, medine mews 4...

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