This action might not be possible to undo. Are you sure you want to continue?
MARGARINE INDUSTRIES LIMITED
Annual Report for the year ended 31 December 2011
Directors of the Company Chairman Mr. Bashirally A Currimjee, G.O.S.K Executive Mr. Azim F Currimjee Mr. Raffi Currimjee Non-Executive Mr. Fakhruddin J Currimjee, G.O.S.K Mr. Mustanshir A Currimjee Mr. Currimjee J Currimjee, G.O.S.K Mr. Anil C Currimjee Mr. Ashraf M Currimjee Mr. Mazahir F E Adamjee Mr. Saliah Mohamed Sait Independent Non-Executive Mr. Hassam Vayid, G.O.S.K Mr. Uday K Gujadhur Directors of the Company’s Subsidiary Central Distributors Company Limited (‘CDCO’) √ √ √ √ Alternate to Mr. Mustanshir A Currimjee Also alternate to Mr. Anil C Currimjee Chief Executive Officer /Managing Director/ Also alternate to Mr. Currimjee J Currimjee Chief Operating Officer
Also alternate to Mr. Ashraf M Currimjee Also alternate to Messrs. Azim F Currimjee Fakhruddin J Currimjee Also alternate to Mr. Bashirally A Currimjee Also alternate to Mr. Mustanshir A Currimjee Also alternate to Mr. Raffi Currimjee Also alternate to Mr. Mazahir F E Adamjee
Mr. Currimjee J Currimjee Mr Mustanshir A Currimjee Mr Azim F Currimjee Mr Raffi Currimjee Mr Ashraf M Currimjee The Company Secretary Currimjee Limited 6, Sir William Newton Street, Port-Louis Mauritius Registered Office 6, Sir William Newton Street, Port-Louis Mauritius Registry Currimjee Limited 6, Sir William Newton Street Port Louis Mauritius Principal Place of Business
New Trunk Road, Trianon Mauritius Auditors Deloitte 7th Floor, Raffles Tower 19, Cybercity Ebene Mauritius Bankers The Mauritius Commercial Bank Ltd. State Bank of Mauritius Ltd Barclays Bank Plc Standard Bank (Mauritius) Limited Afrasia Bank Limited
The wholly-owned subsidiary of the Company.2M to Rs 30. Central Distributors Company Limited [“CDCO”]. the Company expects the results to be sustained given various measures undertaken. The Company was admitted to the Development & Enterprise Market of the Stock Exchange of Mauritius in August 2006. LEGAL FORM AND PRINCIPAL ACTIVITY The Company was incorporated on 20th April 1966 as a private company and was converted into a public company on 29th June 1982. financial performances and cash flows of the Company.3% compared to last year and profit after tax in the year has increased from Rs 20. STATEMENT STATEMENTS OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE FINANCIAL Company law requires the Directors to prepare financial statements for each financial year. RESULTS Group turnover increased by 12. However. Its principal activity consists of manufacturing and sale of margarine and has remained unchanged during the year. The assets were valued by Independent professional valuer in accordance with the group accounting policy. 2012 will be a challenging year. In preparing those financial statements. In the prevailing competitive environment and with the rising commodity prices. the Directors are required to: .4 REPORT FROM THE BOARD OF DIRECTORS Dear Shareholder The Board of Directors is pleased to present the Annual Report of MARGARINE INDUSTRIES LIMITED for the year ended 31 December 2011. is engaged in the trading of consumer goods and its activity has also remained unchanged during the year.3M. A gain on revaluation of plant and machinery of Rs 30. which present fairly the financial positions.4M is included in the other comprehensive income.
state whether applicable Accounting Standards have been followed and complied with. Audit fees Other Services 300.000 20. subject to any material departures disclosed and explained in the financial statements.000 10. The fees paid to the Auditors were: The Company 2011 Rs.500 32. make judgements and estimates that are reasonable and prudent.000 10.5 select suitable accounting policies and then apply them consistently. Deloitte have expressed their willingness to continue in the office and a resolution proposing their re-appointment will be submitted to the Annual Meeting.000 The Group 2011 Rs. Messrs.500 47.000 20. 375. which disclose with reasonable accuracy at any time.500 From Subsidiaries 2011 2010 (Rs) (Rs) Nil Nil Nil Nil Nil Nil Political donations Non-political / charitable donations TOTAL AUDITORS The Auditors. the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2001.000 2010 Rs. DONATIONS From the Company 2011 2010 (Rs) (Rs) Nil Nil 32. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. 300. The Directors are responsible for keeping proper accounting records.000 2010 Rs.500 47. 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 confirm that they have complied with the above requirements in preparing the financial statements. 375.000 .
7 Corporate Governance Report The Company is committed to high standards of Corporate Governance and the Board uses its best endeavours to ensure compliance with the provisions of the Mauritius Code of Corporate Governance.0% 25. the Board consisted of twelve Directors with a mix of two Executives.0% Margarine Industries Limited (“the Company”) 100% Central Distributors Company Limited (“CDCO”) Substantial Shareholding With the exception of CIND. . no other Shareholder holds more than 5% of the share capital of the Company. The Holding Structure The holding structure of the Company as at 31 December 2011is as follows: Fakhary Limited (“FL”) 100% Currimjee Industries Limited (“CIND”) Others 75. Independent Directors are free from any business or other relationships which would materially affect their ability to exercise independence of mind and judgement. eight Non-Executives and two Independent Directors. Board of Directors For the year under review. The Independent and Non-Executive Directors bring a wide range of experience and skills to the Board.
Quality Beverages Limited. He is also a Director of the following DEM listed companies: Quality Beverages Limited and Vital Water Bottling Co Ltd. Soap & Allied Industries Limited Margarine Industries Limited. Soap & Allied Industries Limited and Vital Water Bottling Co Ltd.K Mr. Mr. He is also the Chairman and Managing Director of Currimjee Jeewanjee and Company Limited and the Chariman of the following Development Enterprise Market (DEM) listed companies: Compagnie Immobiliere Limitee.K . Quality Beverages Limited and Vital Water Bottling Co Ltd. Directors may seek independent professional advice at the Company’s expense. a company listed on the Official Market of the Stock Exchange of Mauritius (“SEM”). Mr. Azim F Currimjee was appointed Director of the Company in September 2001. he was respectively appointed as Chief Executive Officer and Managing Director of the Company. Azim F Currimjee Mr.Chairman Mr. Raffi Currimjee Mr. He is presently Director of Fincorp Limited. Bashirally A Currimjee G. Mr.S. Bashirally A Currimjee is the Chairman of the Company since 1 January 2011. Fakhruddin J Currimjee G. Mr. He is also a Director of the following DEM listed companies: Quality Beverages Limited. and Vital Water Bottling Co Ltd. He is also Director of the following DEM listed companies: Compagnie Immobiliere Limitee.8 Where necessary in the discharge of their duties.O. Raffi Currimjee was appointed as Executive Director and Chief Operating Officer of the Company in August 2008. Mustanshir A Currimjee was appointed Director of the Company in August 1976. Soap & Allied Industries Limited. He is also Director of the following DEM listed companies: Compagnie Immobiliere Limitee. Quality Beverages Limited and Vital Water Bottling Co Ltd. Mustanshir A Currimjee Mr. In August 2008 and July 2009. Directors’ Profiles The profile of each member of the Board of Directors is set out hereafter: Mr.O. . Fakhruddin J Currimjee was appointed Director of the Company in April 1966.S.
He also a Director of National Investment Trust Ltd. Quality Beverages Limited.9 Mr. Ashraf M Currimjee Mr. a company listed on the Official Market of the SEM. Mr. Anil C Currimjee was appointed Director of the Company in July 2005. He is presently a Director of the following DEM listed companies: Compagnie Immobiliere Limitee.K Mr. Ashraf M Currimjee was appointed Director of the Company in June 2007 and is Director of the following DEM listed companies: Compagnie Immobiliere Limitee. Saliah Mohamed Sait was appointed as Director of the Company in June 2006. . a company listed on the Official Market of the SEM. Soap & Allied Industries Limited and Vital Water Bottling Co Ltd. Soap & Allied Industries Limited and Vital Water Bottling Co Ltd Mr. He is also a Director of Mauritius Oil Refineries Limited. He is also a Director of the following DEM listed companies: Quality Beverages Limited. Soap & Allied Industries Limited and Vital Water Bottling Co Ltd. Currimjee J Currimjee has acted as Chairman of the Company from 15 November 1978 to 31 December 2010. Quality Beverages Limited. Mazahir F E Adamjee was appointed Director of the Company in July 2005. Soap & Allied Industries Limited and Vital Water Bottling Co Ltd. Quality Beverages Limited. a company listed on the Official Market of the SEM. Mr. Anil C Currimjee Mr.S. Mazahir F E Adamjee Mr. He also a Director of the Mauritius Commercial Bank Limited.O. Saliah Mohamed Sait Mr. He is also Director of the following DEM listed companies: Quality Beverages Limited. He is the Managing Director of some companies of the Currimjee Group. Mr. He is a Director of the following listed companies: Compagnie Immobiliere Limitee. Soap & Allied Industries Limited and Vital Water Bottling Co Ltd. Currimjee J Currimjee G.
Board Committees In line with Corporate Governance best practices. Hassam Vayid Mr. He is the Chairman of Bramer Banking Corporation Ltd and Director of the following DEM listed companies: Quality Beverages Limited. Board Meeting The Board of Directors meets every quarter to review the overall management and performance of the Company. the Board has established the following subcommittees to assist it in the decision-making process and in the performance of its duties and responsibilities: Corporate Governance Committee Audit Committee Ad-hoc committees are also set up to assess and review major investments and new projects. Mr. The Committee operates under a Committee Charter approved by the Board and its main attribution is to make recommendations to the Board of Directors on all corporate governance provisions to be adopted so that the Board remains effective and complies with prevailing corporate governance principles. Additional Board Meetings are held as and when required and decisions are also taken by way of resolutions in writing. He is Director of the following DEM listed companies: Quality Beverages Limited. Corporate Governance Committee The Corporate Governance Committee is chaired by Mr Hassam Vayid. and the other members as at 31 December 2011 were Messrs Bashirally A Currimjee. Hassam Vayid was appointed as an Independent Director of the Company in July 2005. Soap & Allied Industries Limited and Vital Water Bottling Co Ltd. Ashraf M Currimjee. Soap & Allied Industries Limited and Vital Water Bottling Co Ltd. Uday K Gujadhur Mr Uday K Gujadhur was appointed as an Independent Director and Chairman of the Company’s Audit Committee in July 2010.10 Mr. . assented and signed by all Directors. Azim F Currimjee and Mazahir Adamjee. an Independent Director. Mr Anil C Currimjee stepped down as Committee Member and Mr Mazahir Adamjee was appointed as a Member of the Committee in July 2011. The Board of Directors met five times during the year under review.
an independent Director. the qualifications. The role of the Audit Committee has continually been pre-dominant in assisting the Board in carrying out its responsibilities relating to accounting policies. internal control procedures. Currimjee Limited acts as Secretary to all the above Committees. the compliance of the Company with laws and regulations. performance and remuneration. assessment of external auditors independence. Audit Committee The Audit Committee is chaired by Mr Uday Kumar Gujadhur. The Audit Committee oversees the financial reporting process and in particular. financial reporting practices and audit process. The Audit Committee operates under the Terms of Reference set by the Board of Directors and a formally approved Audit Committee Charter. It also reviews and monitors the following: the effectiveness of the internal audit function. Ashraf M Currimjee and Hassam Vayid. The other members of the Audit Committee as at 31 December 2011 were Messrs Saliah Mohamed Sait. Board and Committee Attendance The following table gives the records of attendance at meetings of the Company’s Board and its Committees for the year under review: Directors Mr Bashirally A Currimjee Mr Azim F Currimjee Mr Raffi Currimjee Mr Fakhruddin J Currimjee Mr Mustanshir A Currimjee Mr Currimjee J Currimjee Mr Anil C Currimjee Board Meeting 5/5 5/5 4/5 2/5 3/5 5/5 4/5 Audit Committee n/a n/a n/a n/a n/a n/a n/a Corporate Governance Committee 2/2 2/2 n/a n/a n/a n/a n/a . United Kingdom. it reviews the annual and quarterly financial statements before being submitted to the Board of Directors for approval. Mr Uday K Gujadhur is a Fellow Member of the Association of Chartered Certified Accountants.11 The Committee met twice during the year under review. The Audit Committee met four times for the year under review.
12 Directors Mr Ashraf M Currimjee Mr Mazahir F E Adamjee Mr Saliah Mohamed Sait Mr Hassam Vayid Mr Uday K Gujadhur Board Meeting 4/5 4/5 5/5 4/5 3/5 Audit Committee 3/4 n/a 4/4 4/4 4/4 Corporate Governance Committee 2/2 n/a n/a 2/2 n/a Common Directors within the Holding Structure Company Fakhary Limited Currimjee Industries Limited Mr Bashirally A Currimjee Mr Azim F Currimjee Mr Raffi Currimjee Mr Fakhruddin J Currimjee Mr Mustanshir A Currimjee Mr Currimjee J Currimjee Mr Anil C Currimjee Mr Ashraf M Currimjee Mr Mazahir F E Adamjee Mr Hassam Vayid A* stands for Alternate Director Internal control The Board is responsible for the maintenance of an internal control system. The Board regularly reviews processes and procedures to ensure effectiveness of the Company’s internal control systems. The Internal Audit Service for the Company is outsourced to Currimjee Jeewanjee and Company Limited who delivers the service through its Internal Audit Department with clear reporting structure between the Internal Auditor and the Company. The internal control activities are carried out in line with an approved internal audit plan. The internal Auditor has unrestricted access to the Company’s accounting records. The Board of Directors is conscious of its role of withholding the highest standard of corporate governance and has established a sensible framework of valuable controls which enables risks to be assessed and managed. to management and employees. √ √ √ √ √ √ √ √ √ √ A* √ √ √ √ √ √ √ √ √ A* √ √ √ √ √ A* √ √ √ √ Central Distributors Company Limited . The internal Auditor reports to the Audit Committee.
developing and agreeing the Company’s general policy on remuneration for Directors and pension for Retired Directors and on the appointment of new Directors. which solicits the expert advice of a Consultant to assist in determining the remuneration of Executive Directors. Fakhruddin J Currimjee. The Board is. Therefore. The Committee met once during the year under review.C. Ensure that pay levels are internally consistent and align with market rates. The Company’s remuneration philosophy concerning Directors follow the guidelines proposed by the Nomination and Remuneration Committee. The Company’s policy for determining remuneration for Management and Staff follow the guidelines below: Ensure that remuneration is commensurate with qualifications. All decision taken at the Nomination and Remuneration committee level are submitted for approval by the Board of the Company. Statement of the Company’s remuneration philosophy The Nomination and Remuneration Committee is set up at the level of Currimjee Limited and is chaired by Mr Carrim A Currimjee. nevertheless responsible for the total process of risk management. Independent Directors are also remunerated for attendance at Board Meetings. the objective of risk management is to reduce risk to an acceptable level. skills and experience. and Mr Jean Paul de Chazal have been nominated as co-opted Members on the Committee for their independent expert advice. including the identification and evaluation of risks and putting in place appropriate systems and controls to mitigate the impact of risks. The other members as at 31 December 2011 were Messrs Bashirally A Currimjee. in addition to their Directors’ fees. . Sir Hamid Moollan Q. Independent Directors who are Members of the Board’s sub-committees are paid committee fees.13 Risks Management Senior Management assumes responsibility for identifying and monitoring the risks as appropriate to their position in the organisation. The Committee’s main responsibility is for making recommendations to the Board for determining.
Non-Executive Directors Total .410 135. retains and motivates staff.14 Provide a remuneration package that attracts.500 825. which is updated with every transaction entered into by the Directors and their closely related parties. All new Directors are required to notify in writing to the Company Secretary their holdings in the Company’s shares as well as those in related companies. Reward managers according to their performance and their responsibilities. Directors’ service contracts No Director holds any service contract with the Company.603 147. The following table details the interests of the Directors in the share capital of the Company as at 31 December 2011: . Remuneration and benefits received by Directors during the financial year were as follows From the Company Rs Total .Independent Directors TOTAL 542. The Company Secretary maintains a Register of Interests. Remuneration of Directors has not been disclosed on an individual basis due to commercial sensitivity.Executive Directors Total . Directors’ Interest and Dealings in Shares The Directors are aware of the principles of the model code on securities transactions by Directors as detailed in Appendix 6 of the Mauritius Stock Exchange Listing rules.513 Directors did not receive any remuneration and benefits from the Company’s subsidiaries for the year under review. None of the Directors traded in the Company’s shares throughout the year under review.
Shareholders’ Agreement To the knowledge of the Company.15 Interests in the Company’s shares as at 31 December 2010 Number of shares Direct Mr Bashirally A Currimjee Mr Azim F Currimjee Mr Raffi Currimjee Mr Fakhruddin J Currimjee Mr Mustanshir A Currimjee Mr Currimjee J Currimjee Mr Anil C Currimjee Mr Ashraf M Currimjee Mr Mazahir F E Adamjee Mr Saliah Mohamed Sait Mr Hassam Vayid Mr Uday K Gujadhur 4. the Company had 131 registered Shareholders. and The quorum for a Shareholders’ meeting is two Shareholders present or represented by proxy. there was no such agreement with any of its Shareholders for the year under review.000 2.281 - Constitution The main highlights of the Constitution are as follows: The main objects inter alia of the Company are to carry on the business of manufacturers of Margarine.558 4. cooking fats and other similar products. 608 1. Shareholding Profile The share ownership and the category of Shareholders as at 31 December 2011 are set out below: . The Shareholders can freely transfer fully paid up shares of the Company.556 5.482 500 1.000 - Indirect 2. Vegetable Ghee.482 5. Share Registry and Transfer Office The share registry is managed by Currimjee Limited and as at 31 December 2011.
16 Number of Shareholders 112 4 9 4 1 1 131 Size of Shareholding 1-500 shares 501-1.001-100.) 100 50 0 Year 2011 .000 shares 100.180 75.894 8.239 % of Total Issued Shares 1.000 shares 250.18 100% Other Corporate Bodies Individuals Pension & Provident Funds Total 229. 178 300.972 1.888 12.702 25.622 4.000 shares 1.550 300.000 100% Number of Shareholders 4 126 1 131 Share Price Information Category of Shareholders Number of Shares Owned % of Total Shares Issued 76.025 12.000 shares 50.000 shares 10.001-500.000 shares Over 500.) 200 150 Price (Rs.49 19.001-50.550 225.001-250.921 4.000 shares 5.332 8.000 shares Total Number of Shares Owned 5.33 4.000 26.664 58.239 The share of the Company has a nominal value of Rs 100 and the Company’s share price evolution for the year 2011 was as follows: 250 Market Price (Rs.001-10.001-5.
Shareholders’ Communication and Calendar of Events The Board of Directors of the Company understands that communication to Shareholders about matters pertaining to the Company is of great importance and ensures that information is delivered in an open, transparent and meaningful manner. Press communiqués, disclosures in the Annual Report and the Annual Meeting of Shareholders are means available to the Board in keeping the communication line with Shareholders open. The calendar of key events is as follows: Publication of Abridged Audited Accounts for the year ended 31 December 2011March Publication of 1st Quarter Results Annual Report to Shareholders Annual Meeting of Shareholders Publication of 2
May June June August November November/December December
Publication of 3rd Quarter Results Projection for Declaration/Payment of Final Dividend Financial Year End
Employee Share Scheme There is no Employee Share Option Plan in place at Company or Group level.
Dividend Policy Payment of dividends is subject to the profitability of the Company, its cash flow and its capitalexpenditure requirements. For the year under review, the Company declared a dividend of Rs 60.00 per share [2010: Rs 50.00 per share]. The trend in dividend declaration or the previous 10 years is illustrated below:
70 60 50 40 30 20 10 0
20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11
Final Dividend % on Nominal Value of Ordinary Shares
Senior Management’s Profiles
Rafic Sulliman is the General Manager. He joined the Company in 1990. Abed Atchia is the Human Resources IT & Admin Manager and he is responsible for Human Resources, Health & Safety and Security, business information systems, hardware and internal infrastructure of the Company. He joined the Company in January 1970. Sivapragassen Rengasamy is the Factory Manager and he is responsible for the production, maintenance and technical operations of the Company. He joined the Company in May 1972. Zabeer Abbas is the Accounts Manager and he is responsible for the financial management of the business, including production of financial reports, periodic review packs and forecasts. He joined the Company in August 2010. Zeenat Mungloo Peyrye is the Production Manager & R & D Manager and she is responsible for day to day management of Production department and for product improvement and development. She joined the Company on 1st August 2008. Choaib Moreea is the Operations Manager in the Commercial Division. He joined the Company on 1st November 2009.
Senior Management’s Interests in Shares The following table details the interests of Senior Management in the share capital of the Company as at 31 December 2011
Number of shares Number of shares in the Company as at 31st December 2010 Rafic Sulliman Abed Atchia Sivapragassen Rengasamy 1,100 100 100 2,000 Direct Indirect
Related Party Transactions All the transactions of the Company are carried out at arm’s length. Please refer to note 27 of the accounts.
Company Secretary All the Directors have access to the services of the Company Secretary, Currimjee Limited. It ensures that the Company complies with its constitution and all relevant statutory and regulatory requirements. It plays a key role in the application of corporate governance and is a central source of guidance and advice to the Board on matters of ethics and good governance. It ensures proper notification and conduct of the Board of Directors, Board Committees and Shareholders’ meetings and recording of proceedings.
Management Agreement Currimjee Limited offers secretarial and management services to the Company and the main scope of its services comprise, among others, Consultancy and Advisory and Management Services. A Secretariat Service Agreement & a Management Agreement between Currimjee Limited and the Company have been signed in that respect.
Health, Safety & Environment Practices The Company ensures that its operations are compliant with the Occupational Safety and Health Act 2005. A Health & Safety consultant assesses, reviews and ensures that the Company adheres to the best practices in this respect. The Company is committed to sustainable development and ensures that its operations are conducted in a way that minimises their impact on the environment and on the society at large.
Corporate Social Responsibility The Company channels a percentage of its CSR contribution to the “Currimjee Foundation”. The funds are utilised primarily towards poverty alleviation together with support to education, sports, health and environment. The Company has contributed an amount of MUR 509,970 to the Currimjee Foundation for the year 2011. Major projects undertaken by the Currimjee Foundation in the year 2011 were as follows: Poverty Alleviation: Six EAP (Eradication of Absolute Poverty program) families of Vallee Pitot have been taken in charge and empowered. The major activities undertaken by the Currimjee Foundation in Vallee Pitot were, among others, the financing of pre-primary schools, the rehabilitation and empowerment of drug abusers through the Idriss Goomany Centre, the provision of equipment for starting a small business and the contribution to a Credit Union for 117 families.
270.824) (7.136) 20.772.461.748.532.208.177 32.576.554.469 (580.876) (35.202 15 22 21 20 19 2011 Rs 362.333 2.718.792 62.918) 107.114.333) 83.754.393 (4.883.310 (5.402 (15.091 (202.997.445) (7.712 826.693.516.479 (4.695.421 18.681) 30.179.045.681) 27.177.532.695.288 60.321.231) (12.999.589.280.867.055) 22.055) 18.173.825 (173.461.792 60.644) (36.644) (33.011.007.629 2010 Rs 322.303.342 (9.531.770) 25.303.257 1.756 (255.032) (12.323.589.333) (1.700.875.266.55 .358 (5.095) 93.748.677 23.298.522.996 3.202 Earnings per share 23 100.492 4.636.518.722) 4.712 826.772.708.884) 35.838 1.693.535.469 22.007.850.903 5 30.333) (1.011.867) 91.407.822.629 20.808) (9.000 (5.257 62.200 (231.034) (8.709.343 27.518.052.340.410) 33.000 (5.903 30.407.743.300 (10.280.709 (17.661.163.288 1.722) 4.24 MARGARINE INDUSTRIES LIMITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2011 THE GROUP Note Revenue Cost of sales Gross profit Other income Selling and distribution expenses Marketing expenses Administrative expenses Finance costs Profit before taxation Taxation Profit for the year Other comprehensive income Net value gain(loss) on cash flow hedges Gain on revaluation of land and buildings and Plant and Machinery Deferred tax on revaluation of land and buildings and Plant and Machinery Other comprehensive income/(loss) for the year Total comprehensive income for the year Profit attributable to: Owners of the company Total comprehensive income attributable to owners of the company 30.999.419) (6.490) 28.677 256.343 THE COMPANY 2011 2010 Rs Rs 296.421 (580.136) 23.700.93 67.822.867.759.876) (33.954.483) (8.759.177 32.
343 (15.903 4.950) 107.014.822.014.781.900 30.233.266 (1.900 30.759.722.214.171.1240 Revaluation reserves Rs 45.011.695.722) 3.547.933 31.184.629 32.931.899 Note Total Rs 103.999.950) 29.023.333) (1.903 1.333) 44.340) 42.011.620 1.715.629 (18.303.933 31.280.023.288 (15.900 30.421 (18.333) (1.677 27.677 32.144 At 1 January 2010 Profit for the year Other comprehensive income Total comprehensive income for the year Revaluation surplus realised on depreciation Dividend payable At 31 December 2010 Profit for the year Other comprehensive income Total comprehensive income for the year Dividend At 31 December 2011 26 26 .691.167.792 60.822.903 1.342 (5126.96.36.1996 (1.011.620 1.015 27.233.391 30.340) 153.562 27.677 (18.023.461.038.340) 41.722) (580.255 23.307.900 Revaluation reserves Rs 45.523 Retained earnings Rs 24.950) 32.303.461.023.343 20.596.303.822 Other reserves Rs 3.343 (1.202 (15.588.781.011.055) 22.759.844 30.167.792 62.469 (18.167.739.547.950) 110.506 20.25 MARGARINE INDUSTRIES LIMITED STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2011 THE GROUP Attributable to owners Stated capital Rs 30.822.889 75.167.733.280.691.810.257 (15.461.229.257 23.523 Retained earnings Rs 24.629 30.093.763 23.759.680 Note Total Rs 103.023.748.023.461.695.333) 44.889 75.900 30.925 At 1 January 2010 Profit for the year Other comprehensive income Total comprehensive income for the year Dividend payable At 31 December 2010 Profit for the year Other comprehensive income Total comprehensive income for the year Dividend At 31 December 2011 26 26 THE COMPANY Stated capital Rs 30.055) 18.014.889 31.518.810.903 4.822 Other reserves Rs 3.233.715.532.733.722) (580.014.998 20.722) 3.280.340) 152.257 (1.011.889 31.342 (580.
362) (8.209 CASH GENERATED FROM OPERATIONS Tax paid Interest paid Dividend paid NET CASH GENERATED FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest received Purchase of property.371.494 (2.293.271 48.629 5.884) 2.620 14.924.726) (2.361.377 1.254 1.830.319.813) 675.032 (21.415 (26.138.646.850.170.823.224) 35.490) (15.770) (15.772.900.722.044.889 (552.280.421.293.030 10.845) (9.522.224) 5.804) 43.770 THE COMPANY 2011 2010 Rs Rs 27.677 5.382.143) 568.490 52.000 (23.842) 17.726) (2.486 (2.693.000 (675.163.718.123) 2.018) (2.303.123) 7.178 350.254 779.250 (139.845) (7.313.484.960.351 (6.734 (552.968.452.464 9.030 .421.916.000 (14.946.605.260.886) 3.693.017 (3.011.977) (6.143) 568.000 (30.220) 1.802.591.785 32.165.607 (3.802.800) (14.646.884 23.422) (384.787 270.800.679 18.000) (8.163.937.136 7.257 4.818) (14.077.944) 139.564) 7.108.187 (148.977) (7.136 7.199.587.410 26 Note CASH FLOWS FROM OPERATING ACTIVITIES Profit for the year Adjustments for:Taxation recognised in profit or loss Depreciation and amortisation Profit on disposal of property.208 32.MARGARINE INDUSTRIES LIMITED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2011 2011 Rs THE GROUP 2010 Rs 20.533) (5.899.321 (2. plant and equipment NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Leases received Loans received Repayment of loans Repayment of finance leases NET CASH GENERATED FROM FINANCING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT 1 JANUARY CASH AND CASH EQUIVALENTS AT 31 DECEMBER 24 24 16.837 (2.681 8. plant and equipment Retirement benefit obligations Interest income Interest expense OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES (Increase)/Decrease in inventories (Increase)/Decrease in trade and other receivables Increase/(decrease) in trade and other payables 15 5 20 20 21 30.018) (2.373 47.534) 148.540.522.117 44.266 25 6 472.055.127 (6.718.772.220) 2.425) 7.158 10.600.277 14.877) 3.188.460.070.225.152.904) (9.681 8.239.064) 15.915.002) 350.950) 19.519.620 15.004.121.873 (36.570 (4.822.319.706.000.656.842) 12.000.830.447.108.009 (8.931 (30.964 44.000.000) (8.343 4.401.874) 44.672 (5.607) 188.8.131.520) 20.965.656.017) 7.255.759.425 (2.382.077.422.990) 935.486) 9.492.533) (5.000.726 (32.697 22.119 (19.819.850.011.680.492.500 (472.570 (4.296.363.113) (13. plant and equipment Purchase of intangible assets Proceeds from sale of property.138 (26.410) 3.
Financial Instruments: Disclosures .Amendments resulting from May 2010 Annual Improvements to IFRSs.accounting for financial liabilities and de-recognition (effective 1 January 2015) Consolidated Financial Statements (effective 1 January 2013) Disclosure of interest in other entities (effective 1 January 2013) Fair Value Measurement (effective 1 January 2013) The directors anticipate that these amendments will be adopted in the financial statements of the Group and the Company at the above effective dates in future periods. IAS 1 IAS 24 IAS 27 IAS 32 IAS 34 IFRS 7 IFRIC 14 Presentation of Financial Statements . Sir William Newton Street.Amendments resulting from May 2010 Annual Improvements to IFRSs Financial Instruments: Presentation .Reissued as IAS 27 Separate Financial Statements (effective 1 January 2013) Financial Instruments-presentation and amendments to application guidance on the offsetting of financial assets and financial liabilities (effective 1 January 2014) Financial Instruments: Disclosures . The directors have not yet had an opportunity to consider the potential impact of the adoption of these amendments.27 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 1. It is listed on the Development and Enterprise Market (DEM) of the Stock Exchange of Mauritius. New and revised IFRS applied with no material effect on the financial statements The following relevant new and revised Standards and Interpretations have been adopted in these financial statements.Revised definition of related parties. Their application has not had any material impact on the amounts reported for the current and prior years but may impact the accounting for future transactions or arrangements. IAS 1 IAS 12 IAS 19 IAS 27 IAS 32 IFRS 7 IFRS 7 IFRS 7 IFRS 9 IFRS 9 IFRS 10 IFRS 12 IFRS 13 Presentation of Financial Statements .Amendments to revise the way other comprehensive income is presented (effective 1 July 2012) Income Taxes .Amendments resulting from May 2010 Annual Improvements to IFRSs. GENERAL INFORMATION The Company is a public company incorporated in Mauritius with its registered office at 6. .Amendments about offsetting financial assets and financial liabilities (effective 1 January 2013) Financial Instruments: Disclosures .amendments relating to classification of rights issues Interim Financial Reporting .The limit of a defined benefit asset. the following relevant standards and Interpretations were in issue but effective on annual periods beginning on or after the respective dates as indicated. Consolidated and Separate Financial Statements . minimum funding requirements and their interaction November 2009 amendments with respect to voluntary prepaid contributions New and revised IFRS in issue but not yet applied At the date of authorisation of these financial statements. 2.Amendments resulting from May 2010 Annual Improvements to IFRSs.Amendments enhancing disclosures about transfers of financial assets (effective 1 July 2011) Financial Instruments: Disclosures . the group and the Company have applied all of the new and revised standard and interpretations issued by the International Accounting Standards Board (the "IASB") and the International Financial Reporting Interpretations Committee ("IFRIC") of the IASB that are relevant to its operations and effective for accounting periods beginning on 1 January 2011.Limited scope amendment (recovery of underlying assets) (effective 1 January 2012) Employee Benefits-Amended standard resulting from the Post Employment Benefits and Termination Benefits Projects (effective 1 January 2013). Related Party Disclosures . Its main activities are the manufacture and sale of margarine and its related products while the subsidiary is a private company which trades on consumer goods. IAS 19 . Port Louis and principal place of business at Trianon.Classification and Measurement (effective 1 January 2015) Financial Instruments . Consolidated and Separate Financial Statements .Amendments requiring the disclosures about the initial application of IFRS 9 (effective 1 January 2015) Financial Instruments . APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS In the current year.
plant and equipment and financial instruments and in accordance with International Financial Reporting Standards (IFRS). (e) Property. in which event they are written down to the net asset value. discounts. income and expenses are eliminated in full on consolidation. as appropriate. less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal. balances. allowances and returns.28 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 3.depreciation Freehold land and buildings are stated at their revalued amounts being the fair value at the date of revaluation. investments in subsidiaries are stated at cost. ACCOUNTING POLICIES The principal accounting policies adopted by the group and the Company are as follows:(a) Basis of preparation The financial statements are prepared under the historical cost convention as modified by the revaluation of certain property. Management fee is recognised on an accrual basis. (d) Revenue recognition Turnover Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business net of Value Added Tax. . unless in the opinion of the directors. All intra-group transactions. Where necessary. adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the group. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. there has been a permanent diminution in value. (c) Investment in subsidiary In the Company's financial statements. Revaluation of land and buildings is being done every three years by an independent valuer. Revaluations are performed such that the carrying amount does not differ materially from that which would be determined using fair values at the reporting date. (b) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Sale of goods are recognised when goods are delivered and title has passed. plant and equipment . Other income Interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate applicable.
a. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognised in profit or loss in the period in which they become receivable. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate. The benefit of a government loan at a below-market rate of interest is treated as a government grant. The gain or loss arising on the disposal or retirement of an item of property.a.14. straight line Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets. if any. construct or otherwise acquire non-current assets are recognised as deferred revenue in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.29 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 3. plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in statement of comprehensive income. plant and equipment . it is calculated to write off the cost or revalued amount of assets over the expected useful lives of such assets.28% p. Depreciation is not provided for on freehold land.a. less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluation adjustments are recognised on the same basis as for land and buildings. straight line 20% . Specifically.33⅓% p. except to the extent that it reverses a revaluation decrease for the same asset previously recognised in statement of comprehensive income. ACCOUNTING POLICIES (CONT'D) (e) Property. On the subsequent sale or retirement of a revalued property. government grants whose primary condition is that the Company should purchase. On other items of fixed assets. Plant and machinery are stated at their revalued amounts being the fair value at the date of revaluation. straight line 2% p.5% .a. . held in the properties revaluation reserve relating to a previous revaluation of that asset. A decrease in the carrying amount arising on the revaluation of such land and buildings is charged to statement of comprehensive income to the extent that it exceeds the balance.a. in which case the increase is credited to profit or loss to the extent of the decrease previously charged. Plant and equipment are stated at cost or valuation less accumulated depreciation and any accumulated impairment losses.50% p. (f) Government grants Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received. The annual depreciation rates used are as follows: Plant and machinery Factory building Motor vehicles Computer equipment Office furniture and equipment 6.5% . straight line 12.12% p.depreciation (Cont'd) Any revaluation increase arising on the revaluation of such land and buildings is credited in equity to the properties revaluation reserve. Depreciation on revalued buildings is charged to profit or loss. straight line 10% . the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to retained earnings. measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.
a proportion of labour and factory overheads. Cost is determined on Average Cost (AVCO) method. ACCOUNTING POLICIES (CONT'D) (g) Intangible assets Software costs Expenditure incurred on the development of new computer software programmes is recognised as asset and is amortised at 25% p. based on tax rates (and tax laws) that have been enacted or substantively enacted by the reporting date. Cost associated with maintaining computer software programmes are recognised as an expense as incurred. or at the amounts settled. based on a normal level of production. Taxable profit differs from profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Deferred tax liabilities are generally recognised for all taxable temporary differences. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date. (i) Inventories Inventories are valued at the lower of cost and net realisable value. and is accounted for using the liability method. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised. Deferred tax Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. to recover or settle the carrying amount of its assets and liabilities. (j) Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. and deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the company intends to settle its current tax assets and liabilities on a net basis. Cost is based on the invoiced value of materials plus in the case of finished goods. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the company expects. . where known. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Exchange differences arising on transaction of monetary assets and liabilities are dealt with in the statement of comprehensive income. Monetary assets and liabilities in foreign currencies outstanding at year end are translated to Mauritian Rupees at the rates of exchange ruling at end of the reporting period. Current tax The tax currently payable is based on taxable profit for the year. (h) Foreign currency balances Transactions is foreign currencies are converted at the exchange rate at the date of the transactions. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. at the reporting date.30 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 3.a on a straight line basis over their estimated useful lives.
in which case they are capitalised in accordance with the group’s general policy on borrowing costs. Finance expenses are recognised immediately in profit or loss. the net defined benefit cost so charged. ACCOUNTING POLICIES (CONT'D) (k) Cash and cash equivalents Cash comprises cash at bank and in hand and demand deposits net of bank overdrafts. if lower.10% of the present value of defined benefit obligation at that date. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. at the present value of the minimum lease payments.31 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 3. A firm of actuaries carries out the valuation of the funded obligation triennially. The present value of the unfunded obligation is recognised in the statement of financial position as a noncurrent liability based on the the valuation carried out by a firm of actuaries annually. . When there is a contractual arrangement or stated policy for charging the net benefit costs for the plan as a whole measured in accordance with IAS 19 to related companies. the net defined benefit so charged. (iii) State plan Contributions to the National Pension Scheme are expensed to the statement of comprehensive income in the period in which they fall due. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. The current service cost and any recognised past service cost are included as an expense together with the associated interest cost. Cash equivalents are shortterm highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. each related company recognises in its individual financial statements. net of expected return on plan assets. and . each related company recognised in its individual financial statements. (m) Retirement benefits (i) Defined benefit obligation The present value of funded obligation is recognised in the statement of financial position as a non-current liability after adjusting for the fair value of plan assets. The Company is a party to a contractual arrangement with related companies with respect to an unfunded pension plan. any unrecognised actuarial gains and losses and any unrecognised past service cost. A portion of the actuarial gains and losses is recognised as income or expense if the net cumulative unrecognised actuarial gains and losses at the end of the previous accounting period exceeded at that date: . (l) Leased assets Assets held under finance leases are initially recognised as assets of the Group at their fair value at the inception of the lease or. If there is a contractual agreement or stated policy for charging the net defined benefit cost for the plan as a whole measured in accordance with IAS 19 to related companies. unless they are directly attributable to qualifying assets.10% of the fair values of plan assets at that date. (ii) Other retirement benefits The present value of other retirement benefits as provided under the Employment Rights Act 2008 is recognised in the statement of financial position as a non-current liability.
are accounted for on an accrual basis and are added to the carrying amount of the instalment to the extent that they are not settled in the period in which they arise. If any such indication exists. An estimate of doubtful debts is made based on a review of all outstanding amounts at the reporting date. (iii) Cash and cash equivalents Cash and cash equivalents are measured at fair value. to control the group or exercise significant influence over the group in making financial and operating decisions. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount which is higher of an asset's net selling price and value in use. (ii) Loans receivable from related companies Loans receivable from related companies are stated at their principal value. (iv) Accounts payable Accounts payable are stated at amortised cost. Finance charges. (v) Borrowings Interest bearing loans and bank overdrafts are initially recorded at the proceeds received. parties are considered to be related to the group if they have the ability. the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. if any. An impairment loss is recognised as an expense in the statement of comprehensive income immediately. unless the asset is carried at revalued amount in which case the impairment loss is recognised against the fair value reserve for the asset to the extent that the impairment loss does not exceed the amount held in the fair value reserve for that same asset. ACCOUNTING POLICIES (CONT'D) (n) Financial instruments Financial assets and liabilities are recognised on the statement of financial position when the Company has become party to the contractual provisions of the financial instruments. For the purpose of assessing impairment. Financial instruments are initially measured at cost. net of direct issue costs.32 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 3. or if they and the group are subject to common control. . Borrowings are subsequently measured at amortised cost. or vice versa. (o) Related parties For the purposes of these financial statements. assets are grouped at the lowest level for which there are separately identifiable cash flows. which includes transaction costs. directly or indirectly. Related parties may be individuals or other entities. that is the present value of estimated future cash flows expected to arise from continuing to use the asset and from its disposal at the end of its useful life. (p) Impairment At each reporting date. the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. Debts are written off during the period in which they are identified. including premiums payable on settlement or redemption. Any excess is recognised immediately in the statement of comprehensive income. Subsequent to initial recognition these instruments are measured as set out below:(i) Accounts receivable Accounts receivable originated by the Company are stated at cost less provision for doubtful debts. based on the relevant exchange rates at the reporting date.
and it is probable that the group and the company will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. (i) Impairment of assets Property. could materially affect the value-in-use calculations. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. calculated on the basis of management' s assumptions and estimates. Gain and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Provisions are measured at the directors' best estimate of the expenditure required to settle the obligation at the reporting date. are discussed below. Changing the key assumptions. Key sources of estimation uncertainty The key assumptions concerning the future. If the recoverable amount of the CGU is less than the carrying amount of the unit. Goodwill on acquisition of associates is included in investments in associates. plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset exceeds its recoverable amount. Judgements and estimates are continuously evaluated and are based on historical experience and other factors. Goodwill is tested annually for impairment and carried at cost less accumulated impairement loss. the notes to the financial statements set out areas where management has applied a higher degree of judgement that have a significant effect on the amounts recognised in the financial statements. that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. (q) Goodwill Goodwill arising on the acquisition of a subsidiary represents the excess of the cost of acquisition over the fair value of the group's share of the Net identifiable assets of the acquired subsidiary/Associate at the date of acquisition. Goodwill on acquisition of subsidies is shown in a separate line in the statement of financial position. by definition therefore. or estimations and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 4. ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of financial statements in accordance with IFRS requires the directors and management to exercise judgement in the process of applying the accounting policies. The recoverable amount of an asset or a cash generating unit is determined based on the higher of its fair value less cost to sell and value in use. ACCOUNTING POLICIES (CONT'D) (p) Provision Provisions are recognised when the group and the company have a present obligation as a result of a past event. . including the discount rates or the growth rate assumptions in the cash flow projections. Where applicable. and other key sources of estimation uncertainty at the reporting date. The actual results could. including expectations and assumptions concerning future events that are believed to be reasonable under the circumstances. Goodwill is allotted to CGU for the purpose of impairment testing. An impairment less recognised for goodwill is not reversed in a subsequent period. It also requires the use of accounting estimates and assumptions that may affect the reported amounts and disclosures in the financial statements. the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the limit.33 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 3. often differ from the related accounting estimates.
plant and equipment and depreciation Freehold land and buildings. The expected return on plan assets assumption is determined on a uniform basis. Other key assumptions for pension obligations are based in part on current market conditions. depends on the management's expectation of future taxable profit that will be available against which the tax losses can be utilized. the valuation as adopted in the financial statements will be affected. In the intervening years the group reviews the carrying values and adjustment is made where there has been a material change. Also. asset allocation and future estimates of long-term investment returns. The group determines the appropriate discount rate at the end of each year. the independent valuers have to make assumptions that are mainly based on market conditions existing at the reporting date. which is determined by on an open market value basis. continuing credit evaluation of the customer`s financial conditions. Should these assumptions and estimates change. (iv) Deferred tax assets Recognition of deferred tax assets. In determining the appropriate discount rate. ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONT'D) (ii) Property valuation In arriving at the fair value of the properties. . which principally relate to tax losses. specific provisions for individual accounts are recorded when the group and the company become aware of the customer`s inability to meet its financial obligations such as in the case of deterioration in the customer`s operating results or financial position. (vi) Allowances for bad debts Allowances for bad debts for the group and the company is determined using a combination of factors to ensure that the trade receivables are not overstated due to non-recoverability. or not be met. plant and equipment. The outcome of their actual utilization may be different. and the building component of owner-occupied leasehold properties are valued every three years by independent valuers.34 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 4. including the overall quality and ageing of the receivables. assumptions and economic estimates have to be made. (v) Pension obligations The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Management will revise the depreciation charge where useful lives are different to previously estimated. (iii) Property. The allowance for bad debts for all customers is based on a variety of factors. Any changes in these assumptions will impact the carrying amount of pension obligations. or it will write-off or write-down technically obsolete or non-strategic assets that have been abandoned or sold. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. the group considers the interest rates of high-quality corporate bonds that have terms to maturity approximating the terms of the related pension liability. Management determines the estimated useful lives and related depreciation charges for the group's property. taking into consideration long-term historical returns. In arriving at the valuation of land and buildings. The assumptions used in determining the net cost (income) for pensions include the expected long-term rate of return on the relevant plan assets and the discount rate.
500.716.000 36.073 (2.176 1.000 3.839.585.700.953.902 .801 11.000 Plant and machinery Rs 132.014.561 10.953.023 3.049.554.347 Total Rs 256.367 79.065.130 1.289 7.312.306 413.574.000.440.608.000 48.000 262.267.498 9.000 36.922 50.194.903.500.224.854 Motor vehicles Rs 20.034.141.350) 110.000 50.182) 11.000.171 152.925 188.209.079 (12.800.517 10.759 11.000 1.500.308 11.058 (2.635 4.000 82.099.200.847 8.316 Office furniture and equipment Rs 11.156.943.232.669 473.686.377 2.313.768.557 520.889 863.816 (12.700) 4.121.256.052.134.922.500.000 36.953.953.350) 9.500 11.35 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 5.493.733 (16.668) (71.182) 34.720 1.000.653.470) 223.893.922 280.734 (2.556 Computer equipment Rs 10.919.700) 11.000) 19.224.408.218.668) (41.673 7.470) 82.797.799 134.668) (71.078 1.848 (12.186 10.271.555.312.002 4.000 Factory building Rs 46.286 699.985. PLANT AND EQUIPMENT THE GROUP Freehold land Rs 35.218 11.539 262.361 328.078 75.073 COST OR VALUATION At 1 January 2010 Additions Disposals Revaluation adjustments At 31 December 2010 Additions Write off Revaluation adjustments At 31 December 2011 DEPRECIATION At 1 January 2010 Charge for the year Disposals At 31 December 2010 Charge for the year Write off Revaluation adjustments At 31 December 2011 NET BOOK VALUE At 31 December 2011 At 31 December 2010 36.207 1.912.500.517.000 50.668) (41.830 (12.576.242.755 30.708 1. PROPERTY.000 (2.080 1.854 54.951 (32.000.686.014.067.240.805.000) 10.174 18.381 14.007 1.398.058 8.000.784.408.891.000.418 11.140 105.641.995.776.801 825.
000.500 10.686.768 262.556 Computer equipment Rs 10.854 Motor vehicles Rs 20.000.557 520.464 - 1.350) 9.498 10.517.801 11.702 .585.653.881.745.308 10.943.014.493.784.271. PLANT AND EQUIPMENT (CONT'D) THE COMPANY Freehold land Rs 35.985.668) (41.218 104.367 79.36 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 5.288.350) 108.854 184.108.40.2069 134.000) 10.889 863.000 36.716.101 262.067.130 1.576.830 (12.182) 11.182) 32.398.143.014.058 8.848 (12.797.232.893.224.256.207 1.889 (2.608.078 11.839.922 50.312.776.209.555.759 11.000 1. PROPERTY.5220.127.116.115 188.000 Plant and machinery Rs 132.951 (32.313.073 (2.055.008.000 50.000 36.174 18.000 Factory building Rs 46.669 473.500.176 1.141.696 7.909 Total Rs 255.635 COST OR VALUATION At 1 January 2010 Additions Disposals Revaluation adjustments At 31 December 2010 Additions Write off Revaluation adjustments At 31 December 2011 DEPRECIATION At 1 January 2010 Charge for the year Disposals At 31 December 2010 Charge for the year Write off Revaluation adjustments At 31 December 2011 NET BOOK VALUE At 31 December 2011 At 31 December 2010 36.800.507.668) (71.000 50.801 825.409 8.926.161.000 48.078 75.316 Office furniture and equipment Rs 9.306 413.700) 11.110.224.002 4.733 (16.286 699.891.995.716 9.000 3.700.007 18.104.22.1683.668) (71.034.000) 19.000.000.500.242.186 9.418 9.470) 82.953.943 14.408.304.500.058 (2.134.953.500.312.953.470) 221.517 8.171 152.000 (2.700) 4.235 7.377 2.585 3.816 (12.079 (12.000 261.000 82.000.052.000.408.000 36.080 1.668) (41.099.500.554.635 4.484 280.708 1.151.755 30.720 1.
325.000 57.854 Assets revalued Plant and Machinery Date 31 December 2011 Basis of valuation Depreciated Replacement Cost If property.605.021.937.798..549.820 - Freehold land Rs 83.755 67.871.472.186.871.572.312.853 4.557.449 Cost Accumulated depreciation Net book value .958 Total Rs 32. Chartered Valuation Surveyors in accordance with the RICS Red Book and the International Valuation Standards.764 The Group's and the Company's obligations under finance leases are secured by the lessors title to the leased assets.788. their carrying amounts at 31 December would be as follows: 2011 THE GROUP AND THE COMPANY Plant and Machinery Rs 119.168.207.030.930. plant and equipment were stated at historical cost basis.174) to secure banking facilities granted to them.491 Buildings Rs 26.262.801.386 14.853 2010 Net book value Rs 48.860. PROPERTY.021.862 81.553 63.919 15.123.820 6.309 Cost Accumulated depreciation Net book value 2010 THE GROUP AND THE COMPANY Plant and Machinery Rs 6. functional and economic obsolecence factors to arrive at their depreciated replacement cost.37 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 5.046 Total Rs 145.976. (b) The Group and the Company have pledged all their property.937 18. plant and equipment include the following assets held under finance lease: THE GROUP AND THE COMPANY 2011 Cost Rs Plant and machinery Motor vehicles 52.117 18.491 83.491 Buildings Rs 26.075 7.296 73. (c) The Company's Plant & Machinery were revalued by Alan Tinkler.491 83.674 Net book value Rs 44. The Plant & Machinery have been valued using the cost approach which takes into consideration the current prices of the different equipment as new and reduced to take into account physical. The Group is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.029 17.183.075 8.768. The revaluation surplus was credited to revaluation reserves.897. plant and equipment having a carrying amount of Rs 167.661.772 Freehold land Rs 83.728 3.775 (2010: Rs141.754 Cost Rs 52.388. Revalued amount Rs 82.162 58.273.299.524 46. Ramlackhan & Co.592 14.899. PLANT AND EQUIPMENT (CONT'D) (a) Property.036 51.
143 2. Goodwill acquired in a business combination is allocated. Changes in selling prices and direct costs are based on past practices and expectations of future changes in the market. INTANGIBLE ASSETS THE GROUP AND THE COMPANY Software costs COST At 1 January Additions At 31 December AMORTISATION At 1 January Charge for the year At 31 December CARRYING AMOUNT At 31 December Rs 5. Before recognition of impairment losses.458.175 Rs 2.218 The goodwill arose from the full acquisition of the minority shares in Central Distributors Co.802. The key assumptions for the value in use calculations are those regarding the discount rates.143 2011 Rs 2010 Rs The directors consider that the carrying amount of the intangible assets approximate its fair value.019. The growth rates are based on industry growth forecasts. at acquisition. to the cash generating units (CGUs) that are expected to benefit from that busines combinations. the carrying amount of goodwill has been allocated wholly to the trading of consumer goods.501 2. The recoverable amounts of the CGUs are determined from value in use calculations. The group assesses the recoverable amount of goodwill annually or more frequently if there are indications of any impairment. . The directors are of the opinion that no impairment has occured during the year.143 Rs 439.656.218 651. Management estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGU.802. GOODWILL 2011 and 2010 Rs COST Amount recognised on acquisition IMPAIRMENT Impairment loss recognised in the year CARRYING AMOUNT At 31 December 651.533 5.175 439. Ltd which is a wholly owned subsidiary.676 2. 7.143 2. growth rates and expected changes to selling prices and direct costs during the period.802.38 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 6.802.
584.39 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 8.000) 1.000) (39.741.565.388. INVESTMENT IN SUBSIDIARY THE COMPANY 2011 and 2010 Rs 4.000) (2.392.000) 15.000) 42. which trades in consumer goods. THE GROUP 2011 Amounts recognised in the statement of financial positions: Present value of funded obligations Fair value of plan assets Surplus on funded obligations Present value of unfunded obligations Unrecognised actuarial gains/(losses) Net asset in statement of financial position Amounts recognised in statement of comprehensive income: Current service cost Contributions by employees Interest on obligation Expected return on plan assets Net actuarial losses/(gains) recognised in period Total.000) (1.000 (8.000) (2.000) . a company incorporated in Mauritius.711.000) 2.790. included in "employee benefits expense" 2.002. RETIREMENT BENEFIT ASSET (a) Retirement benefit asset Pension plan The pension plan is a final salary defined contribution plan for employees and is wholly funded.780.437.043.103.000 3.419.000) 22.101.000) (29.192.000) 41.935.000 (80.000 (74. The directors have valued the unquoted investment at book value which in their opinion reflects fairly the value of the investments. The assets of the plan are held and administered independently by The Mauritius Business and Management Limited.454.000 3.000 4.000 (7.875.000) (34.594.000 3.713.000) 26.599.000) (947.600 At cost At 1 January and 31 December The company holds 100% (2010: 100%) of the issued share capital of Central Distributors Co Ltd.000) (34.000 (75.000 (7. The plan provides for a pension at retirement and a benefit in death or disablement in service before retirement.925.181.000) 1.000) (1.524.331.752) 46.093.000 (82.347.871.000 (7.067.257.000) (3.000) 2010 THE COMPANY 2011 2010 44.000 (11.224.000) (2.475.248 (13.401.877.000 (15.000) 18.105. 9.155.483.000 (13.151.000) (905.742.
000 44.000) 2.105.000) (4.000 7.000 (11.000 43.752) (2.000 (9.000) 80.388.002.594.101.000 82.105.000 43.000 (2.363.000) (43.000 41.000) (11.000 3.000 (8.Property .000 (4.000) (43.000 2.290.000 1.379.000 (4.297.249.871.689) (3.002.000 (4.739.000 41.804.752) (2.780.524.379.419. RETIREMENT BENEFIT ASSET (CONT'D) (a) Retirement benefit asset (cont'd) THE GROUP 2011 2010 Movements in asset recognised in statement of financial position: Net asset at start of year Net expense recognised in the statement of comprehensive income Contributions and benefits paid Net asset at end of year Actual return on plan assets Changes in the Present Value of the Obligation Present value of obligation at start of year Interest cost Current service cost Past service cost Benefits paid Curtailment/settlement (gain)/loss on obligation Actuarial (gain)/loss on obligation (balancing figure) Present value of obligation at end of year Changes in the Fair Value of the Plan Assets Fair value of plan assets at start of year Expected return on plan assets Contributions to plan assets Benefits paid out of plant assets Actuarial gain/(loss) on plan assets (balancing figure) Fair value of plan assets at end of year Major Asset Categories as Percentage of Plan Assets Local .103.Debt maturity >=12 months .40 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 9.875.752) 3.471.181.000 2.435.000) (13.000 54% 28% 4% 1% 58% 23% 4% 2% 54% 28% 4% 1% 58% 23% 4% 2% 4% 0% 0% 9% 100% 4% 0% 0% 9% 100% 4% 0% 0% 9% 100% 4% 0% 0% 9% 100% 10% 10% 8% 3% 10% 10% 8% 3% A1967/70(2) 10% 10% 8% 3% 10% 10% 8% 3% A1967/70(2) .742.584.000 75.245.454.000 36.000 42.471.037.000) 1.255.476.000) (4.093.380.000 THE COMPANY 2011 2010 (13.Equities .000 65.Cash & Debt maturity < 12 months Overseas (including direct holdings and related mutual funds) .000) 1.790.933.629.000) 5.000 3.245.063) (13.720.000 (2.Cash & Debt maturity < 12 months Total Principal actuarial assumptions at end of year Discount rate Expected rate of return on plan assets Future salary increases Future pensions increases Actuarial table for employee mortality 42.000 7.711.752) 2.000 1.224.565.000) 5.Equities .752) 13.565.257.272.382.392.574.392.414.Property .000 46.925.000 71.000 82.000) 74.000) 2.Debt maturity >=12 months .752) (2.584.162.000 8.599.713.000) (15.000 7.000 37.000 75.000 (2.000 (2.155.093.000 (4.000 3.347.363.000 4.752) 12.257.
256.0% 0.000) 34.0% 10.106 46.392.246.422 3.679 (26.Overseas Equities .000 1.0% 10.0% 10.000) 1.816) 24.000 71.0% 0.044 (40.574.483.388.272.5% 11.0% THE COMPANY 2011 2010 11.065 62.423 65.962 (1.175.5% 10.621) 21.0% 0.5% 11.0% 10.000 3.5% 10.0% 11.542. assets and experience adjustments: 2011 THE GROUP Present value of defined benefit obligations Fair value of plan assets Surplus Experience adjustments on: Plan liabilities (defined benefit obligations) Plan assets THE COMPANY Present value of defined benefit obligations Fair value of plan assets Surplus Experience adjustments on: Plan liabilities (defined benefit obligations) Plan assets Year Expected employer contributions 74.565.863.000) 1.167 (39.307.553.028) (4.0% 10.401.0% 10.000 (41.216 (37.739.162.638.557) 29.015.000 (44.41 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 9.181.908.000 5.029) 22.214.171.124% 5.023.0% 10. RETIREMENT BENEFIT ASSET (CONT'D) (a) Retirement benefit asset (cont'd) THE GROUP 2011 2010 Expected rate of return on plan assets at end of year Equities .002.583) (3.897.0% 10.804.0% 0.5% (1.282 2010 2009 2008 2007 0.933.0% 11.0% 0.000 65.0% 11.0% 0.434.Local Property Loan & Fixed deposits Cash & other Additional disclosure on assets issued or used by reporting entity Percentage of assets at end of year Assets held in the entity's own financial Property occupied by the entity Other assets used by the entity History of obligations.0% 0.5% 10.000 1.643) 22.Local Fixed interest securities .181.0% 5.064.883.0% 5.000 82.950.586) 38.868 (27.594.0% 11.000 (7.5% 11.249.414.151) 34.584.000) (4.161 (7.000) 34.138 60.0% 0.140.758.615.000 .000 75.171 57.327.167.0% 10.000) (4.437.000 (42.000 (46.304.587.0% 5.0% 10.000 5.434.5% 10.0% 0.0% 0.780.380.728 (36.0% 10.974) 33.000) 29.382) (8.0% 10.602.Overseas Fixed interest securities .947) (9.705 80.000) 39.0% 0.720.871.
605.699 29.477 (700.778.430) 52.614 10.308 23.814.906 Other receivables and prepayments Amount due by subsidiary Amount due by related companies .764 11.065.483 2.274 3.853.794 (515.000.003 8. INVENTORIES.580.921.MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 9.479 64.817 16.004.072.466 17.237.082.556.907 3.274.521.406 2.759.213.949 5.489.218.386.213.115 46.376. RETIREMENT BENEFIT ASSET (CONT'D) (b) State pension plan THE GROUP 2011 2010 Rs Rs National Pension Scheme contribution expenses.968. 18.791) 32.622 10.042 5. 891.303.237.883.308 6.296 (1.833.685 75.636 7.584.699 9.516.479 88.695 33.000 52.332 12. TRADE AND OTHER RECEIVABLES THE GROUP 2011 2010 Rs Rs Trade receivables Allowance for doubtful debts 53.368 60.363.380.853.219 13.954 6.421.445.054.749 11.223 57.314.783.001.583 12.540.088.269 The inventories have been pledged for banking facilities.054.145) 38.588 THE COMPANY 2011 2010 Rs Rs 671.649 THE COMPANY 2011 2010 Rs Rs 39.583.667 5.747 544.218.896 (1.156 THE COMPANY 2011 2010 Rs Rs 39.570.682) 45.685 63.224 38. AT COST THE GROUP 2011 2010 Rs Rs Raw materials Finished goods Goods in transit Others 39.495 42 478.964 5.668 18.
43 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 11.720 6.913 515.528 39.548.943.279 THE COMPANY 2011 2010 Rs Rs 3. the group and the Company consider any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date.900 30.303.879 2.046. which are past due at the reporting date for which the group and the Company have not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable.882.950 1.519 (979.303.110.145 457.638. (b) The right to an equal share in dividend authorised by the Board.126 5.682 THE COMPANY 2011 2010 Rs Rs 515.430 1.537) 700.023.046. the group and the Company assess the potential customer’s credit quality and defines credit limits by customer and these are reviewed on a regular basis.791 2. The group and the Company have recognised allowance for doubtful debts against trade receivables above 180 days by reference to past default experience.279 ) for the group and Rs 5.400 5.442. 12.309 2. Accordingly.988 1. The average credit period on sales of goods and services is 69 days (2010: 65 days) for the group and 72 days (2010: 73 days) for the Company.878 57.660) for the Company. Ageing of past due but not impaired THE GROUP 2011 2010 Rs Rs 60-90 days 90 days .991.991.891 (351. Before accepting any new customer.638.710 2.065. .154 1. (c) The right to an equal share in the distribution of the surplus assets of the Company. Included in the group's and the Company's trade receivable balance are debtors with a carrying amount of Rs 6.029 (2010: Rs 5.180 days 4.264.660 In determining the recoverability of a trade receivable. the directors believe that there is no further credit provision required in excess of the allowance for doubtful debts.791 535.771) 1. The concentration of credit risk is limited due to the customer base being large and unrelated.114 1. The average age of these receivables is 75 days.239 Ordinary shares of Rs100 each 30.163.029 Allowance for doubtful debts THE GROUP 2011 2010 Rs Rs At 1 January Impairment losses recognised on receivables Impairment losses written off as uncollectible At 31 December 1.900 Each of the above share confer to its holder the following rights: (a) The right to vote on poll for every share held at a meeting of the Company on any resolution.777.666. TRADE AND OTHER RECEIVABLES (CONT'D) The directors consider that the carrying amount of trade and other receivables approximates their fair value.114 (2010: Rs 2.023.694. STATED CAPITAL THE GROUP AND THE COMPANY 2011 2010 Rs Rs Issued and fully paid 300.682 741. on winding up.777.
167.067. REVALUATION RESERVES THE GROUP AND THE COMPANY Rs At 1 January 2010 Other comprehensive income At 31 December 2010 Other comprehensive income At 31 December 2011 45.781.185 63.673 132.000. (a) Tax charge THE GROUP 2011 2010 Rs Rs Provision for the year Underprovision in previous year Corporate Social Responsibility Deferred tax movement Tax charge 3.5%).613 2.136 .944.000.067 38.693.25% and PLR+0.970 1.185 1.233.613 2.693. LOANS THE GROUP 2011 2010 Rs Rs Unsecured loans Secured bank loans 1.067 THE COMPANY 2011 2010 Rs Rs 45.75% p.484. The current weighted average effective interest rate on the bank loans is 7.822 14.44 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 13.000.681 2.a.715.741.030.772.523 4.266 (1.262 5.889 75.983.741.000 45.776 509.681 2.970 1.772. TAXATION Income tax is calculated at the rate of 15% (2010: 15%) for the group and the company on the profit for the year as adjusted for income tax purposes.523 4.776 509.000. 15.983.030.333) 44.136 THE COMPANY 2011 2010 Rs Rs 3.000 24.484.93% p.000 24.000.262 5.933 31.000 62.000 The bank loans are secured by floating charges on the property.673 132.944.547.a. plant and equipment and inventories of the group and the Company and bear interest at Prime Lending Rate PLR-0.000 37.000. (2010: 7.067.
837 (384.221) 5.693.136 .867.344) 185.310 5.479 3.136 THE COMPANY 2011 2010 Rs Rs 33.800 1.399.393 4.409 521.776 (557.772.279.365. THE GROUP AND THE COMPANY 2011 2010 Rs Rs At 1 January Charge to Tax expense Charge to Other Comprehensive Income At 31 December 17.409 (384.593 4.681 28.516.027.45 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 15.693.201 509.997.504.970 (877.333 17.052.800 35.681 25.970 (877.177) 17.262 (826.776 509.574) 4.263.454 896.757.872 872.263.067. TAXATION (CONT'D) (b) Tax reconciliation THE GROUP 2011 2010 Rs Rs Profit before tax Tax at 15% Effect of: Expenses not deductible for tax purposes Depreciation on assets not eligible for capital allowances Under provision in tax liability in previous years Deferred tax not recognised Net tax effect of non-taxable and other items Corporate Social Responsibility Consolidation adjustment Tax charge (c) Deferred tax Deferred tax is calculated on all temporary differences under the liability method at the rate of 15% (2010: 15%).293 4.523 5.293 4.574) 4.709 872.885 9.030.221) 5.531.409 132.358 5.593 4.596 896.944 2.772.409 132.
360) 1.263.177) 10.548) 7.333 17.523 5.251 1.412 431.900) (826.333 9.374 Charge to profit or loss Rs Charge to other comprehensive income Rs At 31 December 2010 Rs Charge to profit or loss Rs Charge to other comprehensive income Rs At 31 December 2011 Rs Net deferred tax liabilities 9.867.286.257.067.861.688.112 (456. TAXATION (CONT'D) (c) Deferred tax (Cont'd) Deferred tax liabilities/(assets) arise from the following: THE GROUP AND THE COMPANY At 1 January 2010 Rs Deferred tax liabilities Accelerated capital allowances Retirement benefit assets Revaluation reserves Deferred tax assets Retirement benefit obligations 1.218 2.551 1.188) 5.460 (687.050 2.800 1.030.765.196.380.448) 6.184.177) 17.365.944 2.713 6.909.674 (621.246 (1.687.46 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 15.262 (826.504.663 340.884 .820.028.308.134 (1.867.
082.650 4.000 (2.565.516.200 9.415.599.581.344.200 13.581.138. THE GROUP 2011 Rs Proportion of the unfunded post retirement obligations Charge to the statement of comprehensive income 14.000) 108.716.714.000 10.214.565.MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 16.213.7126.96.36.199 5.967.581.693.000 129.200 Amount recognised in the statement of comprehensive income: 2011 Current service cost Interest cost 2.200 (4.000 15.000) 2010 2.000 2010 112.000) 4.046.197.000 2010 Rs 47 8.254.750 3.200 2010 96.565.000 10.157.000 Movement in liability recognised in the statement of financial position: 2011 At 1 January Total expense as above Contributions paid At 31 December Movement in the present value of the defined benefit obligations were as follows: 2011 At 1 January Current service cost Interest cost Benefits paid Liability (gain)/loss 129.082.000) 108.250 THE COMPANY 2011 Rs 11.650 3.000 108.040.000) 108.000 12.000 12.000 108.000) 128.213.213.000 (2.213.769.714.344.652.000 (9.200 .000) (7.565.755.000) 2010 104.652.500 2010 Rs 10.000 22.200 2010 12.250 The retirement benefit obligations information for the QBL plan as a whole as required by IAS 19 are as follows: Amount recognised in the statement of financial position: 2011 Present value of unfunded obligation Unrecognised actuarial (loss)/gain 104.909.000 12.000 Movement in the present value of the plan assets were as follows:2011 At 1 January Employer contributions Benefits paid At 31 December 9.925.516.200 3.868.000 (2.000 (9. RETIREMENT BENEFIT PLANS Unfunded pensions Quality Beverages Limited ('QBL') a related company operates an unfunded defined benefit plan for some of the directors which provides for a pension at retirement.807. The company is a party to a contractual arrangement with ('QBL') whereby it bears a proportion of the retirement benefit obligations in respect of common directors/officers.723.000 (9.157.000 2.
693.901.289.000) (71.154. The group's and the company's obligation under finance leases are secured by the lessors' title to the leased assets.000) (128.MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 16.669.000 (129. 17.000 Expected employer contributions for the year 2012 .184.766.000) (89.901. The principal actuarial assumptions used for accounting purposes are:2011 % Discount rate Future salary increases Future pension increases Medical benefit inflation Passage benefit inflation Car benefit inflation Driver's allowance inflation 10 6 3 10 6 6 6 2010 % 10 6 3 10 6 6 6 Retirement benefit obligations (unfunded pensions) have been based on the report dated 12 December 2011 submitted by AON Hewitt.043 9. Fair value The fair value of the finance lease liabilities is approximately equal to their carrying amount.693.184.534.000) 3.000) (79.161 8.437.000) (71.373 10.000) 283.660.670 41.652. 48 RETIREMENT BENEFIT PLANS (CONT'D) The history of experience adjustments is as follows:2011 Rs 2010 Rs 2009 Rs 2008 Rs 2007 Rs Present value of defined benefit obligation Fair value of plan assets Deficit Liability experience (loss)/gain (128.373 41.217.000) (104.343 8.341.Rs9.705.373 .380 38.254.817 44.000 (89. Finance lease liabilities THE GROUP AND THE COMPANY Present value of minimum Minimum lease payment lease payment 2011 2010 2011 2010 Rs Rs Rs Rs Amounts payable under finance leases: Within one year Between two to five years Less: Future finance charges Present value of minimum lease payments 14.000) (104. The group and the company have options to purchase the assets for a nominal amount at the conclusion of the lease agreements.331 44.266 39.705.000) (129.415.520 33.415.000.012 33.853 41.170.343 11.000) 7.000) (2.777 51. OBLIGATIONS UNDER FINANCE LEASES Leasing arrangements Finance leases relate to plant and machinery and motor vehicles with lease terms ranging from 5 to 7 years. actuaries and consultants.184.747.032.305.186.652.705.030.011.343 44.154.781 52.
875.199 4.934 1.934 3.184. plant and equipment 712.607 81.622.759 675.278 24.114.331 44.270.696 148.137.704 7.704 6.266.342 21. The average credit period on purchases is 3 months.705.510 61.091 256.091 256.850.982.889 25.099.007.998 23.144 4.884 1.109 3.399.091 256.093.739.629.228 8.758 472.300 3.375 362.402 THE COMPANY 2011 2010 Rs Rs 2.747.255.710 10.597 991.486 552.959.298.272 22.534.323.756 322.MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 17.128 21.490 .512.867.956.093 9.820.Finance leases THE COMPANY 2011 2010 Rs Rs 2.323.875.520 33.825 296.228 11.948 3.373 18.603 57.883.159. 19.116.478 3.422. TRADE AND OTHER PAYABLES THE GROUP 2011 2010 Rs Rs Trade payables Other payables and accruals Amount due to subsidiary Amount due to related company 33.093 7.853 41.185.323.262.875.709 1.232 1.128.163.017 81.Bank overdrafts .825 20.114 69.437.116.738 22.170.012 33.848.163. The group and the company have financial risk management policies to ensure that all payables are paid within the credit timeframe.629.425 552. 49 OBLIGATION UNDER FINANCE LEASES (CONT'D) THE GROUP AND THE COMPANY 2011 2010 Rs Rs Included in the financial statements as: Current liability Non-current liability 10.665 66. OTHER INCOME THE GROUP 2011 2010 Rs Rs Sundry receipts Interest Grant Income Profit on disposal of property.298.410 1.770 1.065 25.697 139.220 4.343 8.012 Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.016 THE COMPANY 2011 2010 Rs Rs 29.200 THE COMPANY 2011 2010 Rs Rs 296.754.718.253 2.825 66.220 2.908.298.456.522.139 11. REVENUE Sales of margarine products Sales of consumer goods THE GROUP 2011 2010 Rs Rs 296. FINANCE COSTS THE GROUP 2011 2010 Rs Rs Interest payable on: .331.681 60.701 183.107.078.Bank loans .
363.018 10.121.502.083.678. CASH AND CASH EQUIVALENTS THE GROUP 2011 Rs Cash in hand and at bank Bank overdrafts 14.568.099.330) 535. PLANT AND EQUIPMENT THE GROUP 2011 Rs Property.629 300.330) 741.678.830 2.693 32.335) 350.734 (399.018 10.382.606 8.990) 57. EARNINGS PER SHARE The profit and number of ordinary shares used in the calculation of earnings per share are as follows: 2011 Rs Profit for the year attributable to owners of the company used in calculation of earnings per share Number of ordinary shares in issue 30.550.058 THE COMPANY 2011 2010 Rs Rs 14.726 723.990) 39.733.208 11.554.280.382.812 14.058 3.350 36.254 (455.830 3.554.258.526) (8.099.891 157.099.149) 5.937.657.013 (2.900 7. PURCHASE OF PROPERTY.830 2010 Rs 3.019.254 (455.055.030 The bank overdrafts are secured by floating charges over the property.772.332 3.239 24.608.421.726 723.224) THE COMPANY 2011 2010 Rs Rs 13. plant and equipment of the group and the company 25.911.754.968.154 THE COMPANY 2011 2010 Rs Rs 183.365 (10.663 31.785 2010 Rs 11.612.303.224 7.830.934 (8.108.421.197 35.913 23.519 2010 Rs 215.151 8.239 2010 Rs 20.863.805) 10. plant and equipment purchased Financed as follows: Cash disbursed Finance leases 14.812 14.554.302 (20.099.600.332 3.50 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 22.058 . PROFIT FOR THE YEAR Profit for the year has been arrived at after (crediting)/charging: THE GROUP 2011 Rs Cost of inventories recognised as an expense Staff costs Depreciation and amortisation Gain on foreign exchange Impairment losses recognised on trade receivables 239.830 2.554.343 300.889 (399.058 3.830.
972 1. 27.842 353.965.Subsidiary .577 172.219.028.744.573.608 220.108 319.241 10.204 137.011.161 139.Companies having same management 23.896 24.998 2. The proposed dividend amounting to Rs18.952 24.356.890 24.Fellow subsidiaries 425.161 139. RELATED PARTY TRANSACTIONS The group and the Company are making the following disclosures in respect of related party transactions and balances.950.645 (iii) Purchase of goods and services Purchase of goods: .144.51 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 26.Companies having same management 137.950).896 12.Fellow subsidiaries .000 218.000 2.560 2.385.316.573.Subsidiary . DIVIDEND By a Board resolution dated 20 December 2011.604.950.712 1.768 220.Subsidiary (ii) Interest received .014. the directors proposed that a dividend of Rs60 (2010: Rs50) will be paid to the shareholders in respect of the current year.Fellow subsidiaries .205 2.000 425.204 493.000 493.205 425.721 57.998 2.340 was paid on 16 January 2012 (2010: Rs15.560 2.104 15.548. THE COMPANY THE GROUP 2011 2010 2011 2010 Rs Rs Rs Rs (i) Sales of goods and services Sales of goods: .823 .068 229.000 643.721 Sales of services: .952 14.Subsidiary .
820.000 5. foreign currency risks.467 2010 Rs 20.Fellow subsidiaries .000.000 5.727 6.120.042 218.421.000. RELATED PARTY TRANSACTIONS (CONT'D) THE GROUP 2011 2010 Rs Rs (iii) Outstanding balances Receivable from: .250 11.Fellow subsidiaries 5. interest rate risks.769.Companies having same management THE COMPANY 2011 2010 Rs Rs 218.421.000.809 22. 14.339 17.Subsidiary .716.723.515.Subsidiary .510 24.650 28.160.651 303.000 5.291 The directors consider that no liabilities will arise as the probability for default in respect of the guarantees is remote.142. credit risks and liquidity risks.000.998 23.000 5.128 21.000.021 25.000 8.093 305. 29. CONTINGENT LIABILITIES 2011 Rs Bank guarantees and performance bonds to third parties Rs 20.949 6.300.510 183.000. FINANCIAL INSTRUMENTS In its ordinary operations.601 The amounts due by and to related companies are unsecured.739.030 22.000. interest free and repayable on demand.Subsidiary . The group and the company have devised on a central basis a set of specific policies for managing these exposures.52 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 27.Fellow subsidiaries .000.739.638.082.656.group plan Retirement benefit cost Group companies having same management (v) Compensation paid to key management personnel There were no compensation paid to key management personnel for the year under review (2010: Nil).685 1. the group and the company are exposed to various risks such as capital risk.777.114 24.000.083 602 218.750 10.Companies having same management 25.000 Payables to: .368 1.264 23.000 5.949 Loans from: .083 602 4.368 4.000 3. .000 5.909.650 8. (iv) Retirement benefit .
comprising issued capital. the basis of measurement and the basis on which income and expenses are recognised. Categories of financial instruments 2011 Rs Financial assets Trade and other receivables Cash and bank balances 65.220 Financial liabilities At amortised cost: Foreign currency risk management The group and the Company are exposed to the risk that the exchange rate of the Mauritian rupee relative to the currencies listed below may change in a manner which has a material effect on the reported values of the group's and the Company’s assets and liabilities. in respect of each class of financial asset and financial liability and equity instruments are disclosed in note 3 to the financial statements.083.934 79. reserves and retained earnings as disclosed in the statements of changes in equity.346.355.708 (11.343 110.093.108.911.550.925 67% Debt is defined as long and short term borrowings and bank overdrafts.148 (13.015 59% 116.907.666 57.338.743 152.911.568.302) 88.030 161.144 51% 76.728. Gearing Ratio The gearing ratio at the year end was as follows: 2011 Rs Debt (i) Cash and cash equivalents Net Debt Equity (ii) Net debt to equity ratio (i) (ii) THE GROUP 2010 Rs 100.733.135 153.586.365) 65.006.550.297.247.965 (11.364 11.083.844 82% THE COMPANY 2011 2010 Rs Rs 91.297 THE GROUP 2010 Rs THE COMPANY 2011 2010 Rs Rs . which includes the borrowings disclosed in notes 14 and 24.286 14. Significant accounting policies Details of the significant accounting policies and methods adopted.302 67.365 60.497. cash and cash equivalents and equity attributable to owners of the company.981 169.208.797.463.742.623.262. The capital structure of the group and the Company consists of debt.677 (14.720 55.934) 102.438.568.553 49.159. including the criteria for recognition.689 133.540 13. The group's and the company's overall strategy remains unchanged from 2010.53 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 29. 203.013 71.013) 78.500.663 107.292.932 11. FINANCIAL INSTRUMENTS (CONT'D) Capital risk management The group and the Company manage their capital to ensure that entities in the group and the Company will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.237. Equity includes all capital and reserves of the group and the company.
874. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates.088 577.524.210 169.517.635 9.154.730 707.559 671.580.747 1.887 71.715.628.566 EURO impact 2011 2010 Rs Rs 1.560 899.54 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 29.235 133.463. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. A positive number below indicates an increase in profit or a decrease in loss where the Mauritian Rupee strengthens 10% against the relevant currency.930.585.553 144. there would be an equal and opposite impact on the profit or loss.455 384. For a 10% weakening of the Mauritian against the relevant currency.933 5.463 16.783 806.971 753.545.720 Impact of a 10% appreciation of the Mauritian Rupee:THE GROUP USD impact 2011 2010 Profit or loss THE COMPANY USD impact 2011 2010 Rs Rs Profit or loss 413.293.272 440.292.346.689 49.164.777 60.235 161.078 5. and the balances below would be negative. Forward foreign currency contracts outstanding at 31 December 2011 are as follows: .483.540.773.495.907.041 13.500.694 13.067 The profit or loss is mainly attributable to the exposure outstanding on USD and EURO receivables and payables at year end in the Company. 55.306 384.030 Foreign currency sensitivity analysis The group and the Company are mainly exposed to the USD and the EURO.666 135.381 79.885 5.593.613.262 EURO impact 2011 2010 1.359 4.377 2.297.544 12.702 5.981 63.570 67.497.433.415.293.103 1.006.517.210 203.297 110.130.674 577. The following table details the group's and the Company's sensitivity to a 10% increase and decrease in the Mauritian Rupee against the relevant foreign currencies.048.342 8.377 1.220 Financial liabilities Mauritian Rupees United States dollars Euro South African Rand and others 171.962.542 4.597 12. Forward foreign exchange contract It is the policy of the group and the Company to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts.690 17. FINANCIAL INSTRUMENTS (CONT'D) Currency profile The currency profile of the group's and the Company’s financial assets and financial liabilities are summarised as follows: THE GROUP THE COMPANY 2011 2010 2011 2010 Financial assets Rs Rs Rs Rs Mauritian Rupees United States Dollars Euro South African Rand and others 71.235 5.623.257.628.
Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company. The group and the Company do not have significant concentration of risk on the trade receivables due to their large number of customers.350) Buy EURO Less than 3 months 670. If interest rates had been 50 basis points higher/lower and all other variables were held constant.950 Fair Value Rs (401.56 Foreign currency Notional Value Rs 25. The Company has enterred into forward exchange contracts (for terms of exceeding 3 months) to hedge against the exchange rate risk arising from these purchases.55 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 29. For floating rate liabilities. Credit exposure is controlled by counterparty limits that are approved and reviewed by key management on a regular basis. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.194) respectively. the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year.831. Fair values Except where stated elsewhere.045 and Rs382. FINANCIAL INSTRUMENTS (CONT'D) Forward foreign exchange contract (Cont'd) THE GROUP AND THE COMPANY Outstanding contracts Average exchange Rs 38. the carrying amounts of the company’s financial assets and financial liabilities approximate their fair values due to the short-term nature of the balances involved. The group and the company have adopted a policy of only dealing with creditworthy counterparties. spread across diverse industries and geographical areas. the group's and the company’s profit for the year ended 31 December 2011 would decrease/increase by Rs583.986 (2010: the loss would increase/decrease by Rs501. This is mainly attributable to the group's and the company’s exposure to interest rates on its variable rate borrowings. Interest rate risk The group and the Company are exposed to interest rate risk as entities in the group borrow funds at both fixed and floating interest rates. The group and the Company managed the risk by maintaining an appropriate mix between fixed and floating rate borrowings. The amounts presented in the statement of financial position are net of allowances for doubtful receivables. as a means of mitigating the risk of financial loss from defaults. .643 and Rs458. Interest rate sensitivity analysis The sensitivity analysis below have been determined based on the exposure to interest rates for the non-derivative instruments at the reporting date. estimated by management based on prior experience and represents the group's and the company’s maximum exposure to credit risk.000 The Company has entered into contracts to purchase raw materials from suppliers in Germany. The group's and the Company’s credit risk are primarily attributable to trade receivables which are unsecured.
56 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 29.836 132.011.223 1 .276 3 months to 1 year Rs 7.043 38.83% 7.290.015 41.781 38.891 Non-Interest bearing Finance lease liability Variable interest rates instruments 9.793 209. The company utlilises a rollover hedging strategy.93% Weighted Average effective interest rate 2010 Less than 1 month Rs 57. THE GROUP Weighted Average effective interest rate 2011 Less than 1 month Rs 87.779.257.3 months Rs 3.208. In the current year.398 1 .13% The Group has access to unused financing facilities at the reporting date.781 38.223 1 .917.277.5 years Rs 38.030.5 years Rs 39.781 Total Rs 87.5 years Rs 38.223 9.229 52. banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.015 35.185.93% Weighted Average effective interest rate 2010 Less than 1 month Rs 61.255.959 27.431.83% 7.223 9.511 1 .904 3 months to 1 year Rs 9.277.193.030.310.864.142 28. Upon the maturity of a forward contract. The table includes both interest and principal cash flows.341.078 52.217.011.858.5 years Rs 39.779.208.943 76.265 3 months to 1 year Rs 9.255.777 Total Rs 61.341.275 1 .093.043 24.636.13% THE COMPANY Weighted Average effective interest rate 2011 Less than 1 month Rs 78.511 7.3 months Rs 2.778. The Group expects to maintain current debt to equity ratio.3 months Rs 3.864.183 Non-Interest bearing Finance lease liability Variable interest rates instruments 9.779.250 39.431.341.439 14.781 Total Rs 78.511 1 . FINANCIAL INSTRUMENTS (CONT'D) Liquidity risk management The group and the Company manage liquidity risk by maintaining adequate reserves.431.639.189.673. The table have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which they can be required to pay.161 70.217.93% 8.777 39.142 12.93% 8.511 7. The Group expects to meet its other obligations from operating cash flows.441 1 .3 months Rs 2.962 Non-Interest bearing Finance lease liability Variable interest rates instruments 9. the company has designated the forward contracts as cash flow hedging.093.471 178.317 24.057.877 58.917.774.185.328 1 .431.779.139.443.905 117.364.889 45.030.189.290. Liquidity and interest risk table The following tables detail the remaining contractual maturity for non-derivative financial liabilities.341.927.566.439 152. using contract with terms of up to 12 months.016 51.902 151.317 24.276 3 months to 1 year Rs 7.710 Non-Interest bearing Finance lease liability Variable interest rates instruments 9. the company enters into a new contract designated as a separate hedging relationship.078 1. .229 1.777 Total Rs 57.344.566.553.030. Other price risks The company enters into forward contracts to purchase raw materials to cover specific requirements within 50% to 60% of the exposure generated.012 972.959 27.161 48.221 92.691.777 39.012 51.016 972.
883 (1.545 (377.052.756 Finance costs Profit before tax Taxation Profit for the year 256. Segment profit represents the profit earned by each segment without allocation of investment revenue. Products and services from which reportable segments derive their revenues.770) 25.870 Fair value 2010 Rs 3. The principal products and services of each of these divisions are as follows: Manufacturing . The information reported to the group's chief operating decision maker for the purposes of resource allocation and assessment of segment performance is focussed on the operating divisions which are manufacturing and trading.738.883.769 4.249 34.249 (9.345) 322.303.058.399 (218.091 66.241 (2010: Rs377.479 (4.772.693.825 66.136) 20.345) for the year ended 31 December 2011 The accounting policies of the reportable segments are the same as the group's accounting policies described in note 3.754.381.57 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2011 29.220.997.194 (7.629 36.691.298.the manufacturing and sale of margarine and related products Trading .241) 362.206) 188.8.131.522.620 The company has entered into forward contracts (for terms not exceeding 12 months) to purchase raw materials from suppliers in Germany and Malaysia. SEGMENT INFORMATION IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance.343 Intersegment sales amounted to Rs 353.260.310 (5.905 363.875.200 Segment result 2011 2010 Rs Rs 39.771. FINANCIAL INSTRUMENTS (CONT'D) The following table details the forward foreign currency (FC) contracts outstanding as at reporting date: THE GROUP AND THE COMPANY Outstanding contracts Cash flow hedges Less than 1 year Contract 2011 Rs 69.trading of consumer goods Segment revenue and segment results Segment revenue 2011 2010 Rs Rs Manufacturing Trading Total of all segments Eliminations 296.884) 35.718. 30.520.523 Contract 2010 Rs 18.681) 30.103 Fair value 2011 Rs 4.997 (353.809. .720 323. This is the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.610.280.679. As at 31 December 2011 there has been no ineffectiveness recognised in profit or loss arising from the hedges.107.631 43. finance costs and income taxes.634) 34.771.384.
876 41.285.954.356. a company incorporated in Mauritius. CAPITAL COMMITMENTS Authorised but not contracted 2011 Rs 2010 Rs Commitments for the acquisition of property. Geographical segments The group's operations are located in Mauritius only.498.208.883.300.248 66.952 322.382.928 2011 Rs 181.400.719 (4. a company incorporated in Mauritius. as the ultimate holding company.715.843.573 (4.116.121.008.552) 388.837.318.756 Information about major customers The group has no major customers.960 2010 Rs 272.201 6.239.856.747.382.330) 299. plant and equipment 26.370 34.356.853 192.238 36.036 Liabilities 2010 Rs 142. .055.58 MARGARINE INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2010 30.020 308.000 32.201 353.259.091 66.363 6.258 (9. ULTIMATE HOLDING AND HOLDING COMPANY The Company regards Currimjee Industries Limited.084 Revenue from major products and services 2011 Rs Margarine Foodstuffs 296.064.756.756. SEGMENT INFORMATION (CONT'D) Segment assets and liabilities Assets 2011 Rs Manufacturing Trading Total segment assets and liabilities Eliminations Unallocated Consolidated assets and liabilities Other segment information Depreciation and amortisation 2011 2010 Rs Rs Manufacturing Trading 8.512 (10.889 65.754.632.363 16.845 7.209.203 176.253 7.634.840.253 8.657.734 Additions to non-current assets 2011 2010 Rs Rs 16.000 13.665 362.818.400 46.289.112 399.843 222. as the holding company and Fakhary Ltd.298.342) 19.381 236.347.064) 18.012.200 31. 2010 Rs 256.456.
804.340.500 1.358 (5.419 10.790.184 5.729.954.363.155.677 33.492 4.114.681) 27.693.589.163.136) 23.636.875.483 8.592 286.996 3.850.421 4.314.759.749 7.824 9.990 296.257 93.381.517.821.951) 36.821.270.373.490) 28.393 (4.321.532.096 GROSS PROFIT Other income LESS: EXPENSES Administrative expenses (Appendix II) Selling and distribution expenses (Appendix III) Marketing expenses (Appendix III) 33.342 6.583 202.769 (6.057 4.381 636. electricity and water Repairs and maintenance Laboratory expenses Depreciation on building.456.925 (669.807 (551.644 (51.661.410) 33.926 177.007.535.531.231 12.165) 5.333 83.679.314.825 .708.187.252.367 464.749 173.772.527) OPERATING PROFIT FINANCE COSTS PROFIT FOR THE YEAR BEFORE TAXATION TAXATION PROFIT FOR THE YEAR 39.781) 4.883 (7.822.733 6.743. plant and machinery Insurance and Other Stock at 31 December 186.072.091 2010 Rs 256.300 156.162 1.298.527 6.386 9.516.APPENDIX I MARGARINE INDUSTRIES LIMITED TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2011 2011 Rs SALES LESS: COST OF SALES Stock at 1 January ADD: COST OF PRODUCTION Raw materials used Wages and commissions Pension fund contribution Fuel.876 (57.
891 1.014 3.Motor vehicle Motor vehicle running expenses 725.888.240 512.000) 5.974 (598.231 403.708.153 262.546 5.238. SELLING AND DISTRIBUTION EXPENSES Salaries and allowances Salaries.716 973.886 699.691 4.175 535.734 57.025 1. wages and allowances Pension fund contribution Selling and distribution costs Depreciation .007.490 30.727 672.619 Staff welfare expenses Establishment expenses Rent and rates Depreciation .581.930.954.250 (1.412 1.754 5.393 711.799.680 19.080.787 9.627.175 280.419 2.913 8.059.445 10.483 6.278) 4.786 (656.644 .250 899.876 8.869 2.589.656 999.001 1.219) 1.631.000 (1.016.motor vehicles 672.358.computer equipment Amortisation .727 33.832 1.855.265.321.832 33.046.furniture and fittings Motor vehicle expenses Depreciation .844 473.960.557) 1.824 185.850.Software Provision for bad debts Bad debts written off General expenses 19.743.789.557.933.517 439. MARKETING EXPENSES Advertising 12.172.855 2010 Rs 3.290.APPENDIX II MARGARINE INDUSTRIES LIMITED TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2011 2011 Rs 1.283.218 465.786 4.075 4.267 1.030.241 4.696 1.172.616 30. ADMINISTRATIVE EXPENSES Administrative expenses Salaries and allowances Retirement benefit costs Pension fund contribution Travelling expenses Telecommunications Legal charges and professional charges Postage and stationery Depreciation .607.674 452.424.
This action might not be possible to undo. Are you sure you want to continue?