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2016ANNUAL REPORT

Our Vision

Our Mission

Our Core Values

Our Quality Policy

Our Quality Management System

Group Proile and BrandsCorporate Information

Statutory Disclosures

Statement of Compliance

Shareholding StructureBoard of Directors and Board CommitteesDirectors’ ProilesSenior Managers’ ProilesShareholding ProileShare Price Information

Board of DirectorsAudit CommitteeCorporate Governance Committee

Safety, Health, Environment & Quality (SHEQ) Committee

Internal Audit FunctionRisk Management

Management of Key Risks

Dividend PolicyRelated Party TransactionsDirectors’ FeesRemuneration of Directors

Code of EthicsCorporate Social Responsibility

Donations

Safety, Health and EnvironmentSustainability Reporting

Shareholder InformationStatement of Directors’ Responsibilities

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Secretary’s CertiicateBoard of Directors’ ReportFinancial Highlights and RatiosValue Added Statement

Independent Auditors’ ReportStatements of Financial PositionStatements of Proit or LossStatements of Proit or Loss and Other Comprehensive IncomeStatements of Changes in Equity

Statements of Cash FlowsNotes to the Financial Statements

Group in Brief

02Corporate Governance

Report

08

Other Reports

29

Financial Statements

37

02

02

02

03

03

06

07

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Dear Shareholder,

The Board of Directors is pleased to present the Annual Report of Les Gaz Industriels Limited and its subsidiary for the year ended June 30, 2016, the contents of which are listed below.

This report was approved by the Board of Directors on October 19, 2016.

Antoine L. Harel Christopher Hart de Keating

Chairman Chief Executive Oicer

Contents

Les Gaz Industriels Limited and its Subsidiary Annual Report 20162 3Les Gaz Industriels Limited and its Subsidiary Annual Report 2016

It is LGI’s policy to supply its customers with products which meet their requirements in terms of Quality and Safety while at the same time complying with applicable regulatory requirements. For the well-being of society, LGI is committed to ensure ongoing customer satisfaction by providing an eicient technical support service with the assistance of its partner, Afrox.

LGI will strive to supply quality products to its customers so as to maintain its competitive edge and grow continually. LGI Management values the importance of its personnel and understands that its contribution as a team is signiicant towards achieving its objectives. LGI Management undertakes to implement this quality policy at all levels and is committed to demonstrate an efective Quality Management System.

The Quality Management System carried out by LGI is applicable to all its activities and the range of products/services it ofers is within the scope of quality management.

Most of the gases are manufactured on LGI’s premises under the technical assistance of our overseas partners (Afrox and Linde). Other industrial and special gases are imported from reputable gas manufacturers and are sold directly without any further processing by LGI.

Our Quality

Policy

Our Quality

Management

System

Our Vision,

Mission & Core Values

We are a customer-focused organisation committed to consistently supply reliable products through a passionate team of dedicated professionals who continuously strive for excellence by making use of cutting edge technology whilst ensuring quality and safety for the beneit of all our stakeholders.

To grow and become a state-of-the-art leading company in the gas and welding sector through enhanced quality products in the region.

Our core values are fairness, honesty and equal opportunity. These values are anchored at all levels within our Company and our people strive to live up to them.

Our Core

Values

Our Mission

Our Vision

Our core values are fairness,

honesty and equal opportunity“ ”

5

for life science and

food industries

Key Solutions

Cooling of the nuclear Magnetic Resonance

apparatus with liquid nitrogen

Leading producer of

liquids

cryogenic

Decanting of liquid nitrogen


Corporate

Information

HEAD OFFICEPailles RoadG.R.N.W.P.O. Box 673Bell Village - Republic of MauritiusTel: (230) 212 8306 (230) 212 8311 (230) 212 1474Fax: (230) 212 0235Hotline: (230) 800 1133Email: [email protected] Website: www.gaz-industriels.com REGISTERED OFFICE18 Edith Cavell StreetPort LouisRepublic of MauritiusTel: (230) 207 3000

REGISTRY & TRANSFER OFFICEHarel Mallac Corporate Services Ltd18 Edith Cavell StreetPort LouisRepublic of MauritiusTel: (230) 207 3000

EXTERNAL AUDITORSBDO & Co. Chartered Accountants10 Frère Felix de Valois Street Port LouisRepublic of MauritiusTel: (230) 202 3000Fax: (230) 202 9993

ENGINEERING AUDITAfrican Oxygen Limited (AFROX)AFROX House23 Webber StreetSelbyJohannesburgRepublic of South AfricaTel: (27) 011 490 0400

SECRETARYHM Secretaries Ltd.18 Edith Cavell StreetPort LouisRepublic of MauritiusTel: (230) 207 3000

INTERNAL AUDITORSPricewaterhouseCoopers Ltd18 CybercityEbèneRepublic of MauritiusTel: (230) 404 5000Fax: (230) 404 5088

BANKERSThe Mauritius Commercial Bank LimitedSir William Newton StreetPort LouisRepublic of MauritiusTel: (230) 202 5000Fax: (230) 212 2233

Banque des MascareignesMaeva Tower Ltd9ème EtageCnr Silicon Avenue & Bank StreetCybercity 72201Tel: (230) 207 8600Fax: (230) 212 4983

BUSINESS REGISTRATION NUMBERC07000817

Group Proile & BrandsLes Gaz Industriels Limited (LGI), founded in 1952 in Mauritius, manufactures and distributes medical and industrial gases in bulk and in cylinders as well as gas equipment, personal protective equipment and welding accessories. LGI also installs gas reticulation systems for both industrial and medical requirements.

LGI continues to innovate in order to satisfy the local and international demands with:

• A selection of renowned brands such as AFROX, ESAB, MILLER, LINDE & AMICO;• A modern Air Separation Unit capable of supplying oxygen and nitrogen for the whole Mauritian market;• Vertical storage facilities for liquid oxygen and liquid nitrogen;• Presence in Madagascar through a subsidiary, namely Gaz Industriels Madagascar SA, for the distribution of medical and industrial

gases;• Our partnerships with diferent foreign companies give us access to more than 250 ISO tanks, which can be checked, reilled

and shipped to any destination in the world for various types of liquids;• A safe operating environment through the enforcement of world-class safety standards.


Donations The Group The Company

2016 2015 2016 2015Rs. Rs. Rs. Rs.

Donations 40,953 58,752 40,953 58,752

Corporate Social Responsibility contributions 20,000 54,078 20,000 54,078

Auditors fees The Group The Company

2016 2015 2016 2015Rs. Rs. Rs. Rs.

Audit fees paid to:

BDO & Co 330,000 322,000 330,000 322,000

Ethica Gestion Audit Sarl 50,850 48,200 - -

Rs. 380,850 370,200 330,000 322,000

Fees paid for other services to:

BDO & Co 95,000 95,000 95,000 95,000

PricewaterhouseCoopers Ltd 175,000 350,000 175,000 350,000

Rs. 270,000 445,000 270,000 445,000

Approved by the Board of Directors on September 21, 2016 and signed on its behalf by:

Antoine L. Harel Christopher Hart de Keating Chairman Chief Executive Oicer

Statutory

DisclosuresYear Ended June 30, 2016

Statutory

Disclosures

Directors

Directors of the Company and of its subsidiary company at the end of the accounting period are as follows:

Les Gaz Industriels Limited

Messrs./Ms. Antoine L. Harel (Chairman) Catherine McIlraith Christopher Hart de Keating (Appointed on September 12, 2015) Marius Johannes Kruger (Appointed on July 31, 2015) Basil Miller (Appointed on October 1, 2015) Michel Guy Rivalland Laurent Bourgault du Coudray - alternate to Michel Guy Rivalland Willem Coetzee (Resigned on July 31, 2015) Mark Brett Wheatcroft (Resigned on September 30, 2015)

Gaz Industriels Madagascar SA

Messrs. Antoine L. Harel (Chairman) Willem Coetzee Raphaël Jakoba Jean-Lou Moutia Christopher Hart de Keating (Appointed on September 14, 2015)

Directors' Service Contracts

Mr. Christopher Hart de Keating has a service contract with the Company without expiry date.

None of the other Directors has unexpired service contracts with the Company.

Directors' Remuneration

Remuneration and beneits received or due and receivable from the Company and its subsidiary company were as follows:

From the Company From the Subsidiary

2016 2015 2016 2015

Rs. Rs. Rs. Rs.

Executive Directors

- Full time 2,993,912 1,912,348 - -

- Part time - - - -

Non-executive Directors 1,184,027 1,014,000 - -

Rs. 4,177,939 2,926,348 - -

The Directors of the subsidiary company did not receive any remuneration and beneits from the subsidiary during the year ended June 30, 2016 (2015: Nil).

The Directors do not have any contract of signiicance with the Company.

Year Ended June 30, 2016

Les Gaz Industriels Limited and its Subsidiary Annual Report 201610

Statement

of Compliance (Section 75(3) of the Financial Reporting Act)

We, the Directors of Les Gaz Industriels Limited, conirm that to the best of our knowledge, the Company has not complied with Section 2.8.2 relating to the remuneration of Directors due to the commercial sensitivity of the information and with Section 2.2.3 relating to executive presence on the Board as, in view of the size of the Company, the Board is of the opinion that having the Chief Executive Oicer on the Board and the Finance Manager attending board meetings is in accordance with the Code’s spirit regarding executive’s presence on the Board.



September 21, 2016

Name of PIE:

Les Gaz Industriels Limited

Reporting Period:

Year end June 30, 2016


Board of Directors and Board Committees at June 30, 2016

Board of Directors of Gaz Industriels Madagascar SA

Antoine L. Harel (Chairman)Jean-Lou MoutiaWillem CoetzeeRaphaël JakobaChristopher Hart de Keating (Appointed on September 14, 2015)

Board of Directors of Les Gaz Industriels Limited

Antoine L. Harel (Chairman)Catherine McIlraithChristopher Hart de Keating (Appointed on September 12, 2015) Marius Johannes Kruger (Appointed on July 31, 2015)Basil Miller (Appointed on October 1, 2015) Michel Guy RivallandLaurent Bourgault du Coudray - alternate to Michel Guy RivallandWillem Coetzee (In oice up to July 31, 2015) Mark Brett Wheatcroft (In oice up to September 30, 2015)

Audit Committee

Catherine McIlraith (Chairman)Marius Johannes Kruger (Appointed on September 10, 2015) Michel Guy RivallandWillem Coetzee (In oice up to July 31, 2015)

Corporate Governance Committee

Antoine L. Harel (Chairman)Catherine McIlraithMarius Johannes Kruger (Appointed on September 10, 2015) Willem Coetzee (In oice up to July 31, 2015)

Safety, Health, Environment and Quality (SHEQ) Committee

Basil Miller (Chairman as from November 11, 2015) Christopher Hart de Keating (Appointed on September 10, 2015)

Corporate Governance ReportYear Ended June 30, 2016

Corporate

Governance Report

The Board of Directors is committed to the highest standard of business integrity, transparency and professionalism to ensure that the activities within the Company are managed ethically and responsibly to enhance business value for all its stakeholders.

The Company is committed to the best principles of corporate governance.

Shareholding structure

Les Gaz

Industriels

Limited

38.22%African Oxygen Limited

43.13%Other Companies

99.94%Gaz Industriels

Madagascar SA

18.65%Other Individuals



Laurent Bourgault du Coudray (30)

Alternate Director to Michel Guy Rivalland

Laurent Bourgault du Coudray graduated in accounting and inance from Curtin University in Perth, Australia and is a member of the Institute of Chartered Accountants in Australia. He has worked over 4 years in Perth, providing corporate and international tax services and is, since January 2013, Project Manager at United Investment Limited.

Laurent Bourgault du Coudray was irst appointed to the Board of LGI in 2014.

Non-Executive Director

(South African)

Brett

Wheatcroft (46)

In oice up to September 30, 2015

Brett Wheatcroft has been working in the industrial gas and welding business for the past 26 years in South Africa. He brings a wealth of experience gained over this period in Production, Distribution, Supply Chain, SHEQ, Manufacturing, Auditing, Stock Management and People Development. Brett Wheatcroft currently holds the position of Head of Production, where he is responsible for all the cylinder illing plants within Afrox.

Brett Wheatcroft holds a NHD Mechanical Engineering, has attended a Graduate Development Program at Cape Town University, and has attended a Management Development Program at Duke University (USA) as well as various management courses through Wits Business School.

In oice up to July 31, 2015Willem Coetzee has been working in the industrial gas business for the past 22 years in the USA, Asia and South Africa. The last position held at African Oxygen Limited was that of General Manager for Merchant and Packaged Gases. He is currently the General Manager for all the Linde Operations in Sub-Saharan Africa outside of South Africa. He holds a BSc Engineering degree as well as a Master of Business Administration.

Willem Coetzee was irst appointed to the Board of LGI in 2009. Non-Executive Director

Willem

Coetzee (60)

Non-Executive Director

Michel Guy

Rivalland (37)

Michel Guy Rivalland is a graduate in Economics. He started his career at ACMS, as Asset Manager. He was appointed Director in 2002 and was subsequently appointed CEO of AXYS group in 2006. In July 2010, he was appointed CEO of United Investment Ltd, an investment holding company quoted on the DEM market. He also sits on the board of Ireland Blyth Limited as well as several listed funds on the SEM, namely ACM India Focus Ltd, ACM Aussie Ltd and ACM European Ltd.

Michel Guy Rivalland was appointed Director to the Board of LGI in 2012.

Basil Miller (59)

Non-Executive Director (South African)

In oice as from October 01, 2015

Basil Miller has been working in the industrial gases business for the past 15 years in South Africa. Basil Miller is based at African Oxygen Limited where he is the Emerging Africa Operations Manager for the Linde operations in Sub-Saharan Africa. He brings to the board a wealth of experience gained over

25 years in management, SHEQ, distribution, manufacturing, production, maintenance and projects, in the engineering and technical environment. He has extensive experience in the gas sector on plant installations and operations.

Basil Miller holds a mechanical engineering diploma, qualiied artisan (welding and sheet metal), diploma in general management with Henley University and risk management diploma with UNISA.

Directors’

ProilesAntoine L. Harel (59)

Independent Non-Executive Chairman

Antoine L. Harel is a Fellow Member of the Institute of Chartered Accountants in England & Wales. He holds a BA (Hons) in Accounting and Computing. He is a director to a number of listed companies and is currently the Chairman of Bychemex Limited, Chemco Limited, Compagnie des Magasins Populaires Limitée, Harel Mallac & Co. Ltd and The Mauritius Chemical and Fertilizer Industry Limited.

Antoine L. Harel was irst appointed to the Board of LGI in 2003.

Catherine McIlraith (52)

Independent Non-Executive Director

Catherine McIlraith, holds a Bachelor of Accountancy degree from the University of the Witwatersrand, Johannesburg, South Africa and has been a member of the South African Institute of Chartered Accountants since 1992. She served her Articles at Ernst & Young in Johannesburg. She then joined the Investment Banking industry and has held senior positions in corporate and specialized inance for Ridge Corporate Finance, BoE NatWest and BoE Merchant Bank in Johannesburg. She returned to Mauritius in 2004 to join Investec Bank where she was Head of Banking until 2010.

Catherine McIlraith is a Fellow Member of the Mauritius Institute of Directors (“MIoD”). She is an Independent Non-Executive Director and a member of various Committees of a number of public and private companies in Mauritius including AfrAsia Bank Limited, CIEL Limited, Astoria Investment Limited and The Mauritius Development Investment Trust Co Limited. She is also the Chairperson of the MIoD and a member of the Financial Reporting Council since October 2014.

Catherine McIlraith was irst appointed to the Board of LGI in 2012.

Meet the

Directors

Christopher Hart de Keating (45)

Executive Director

In oice as from September 12, 2015

Born in 1971, Christopher Hart de Keating joined LGI in July 2015 as Chief Executive Oicer. He earned a ‘Maîtrise Audit et Contrôle de Gestion’ from the University of Paris Dauphine, France. After a fruitful career in diferent renowned companies, Christopher Hart de Keating

decided to embark on an umpteenth challenge by joining Les Gaz Industriels Limited. This accomplished leader has a track record of more than 10 years in senior management positions. Before joining LGI, he was the Chief Operating Oicer of one of the leading automobile dealerships on the island. Christopher Hart de Keating has been involved in the activity of the cluster Textile Madagascar (as Chairperson in 2009) and the Association of Mauritian Manufacturers.

Marius Kruger (47)

Non-Executive Director (South African)

In oice as from July 31, 2015

Marius Kruger has been working in the industrial gas business for the past 19 years in South Africa. Marius Kruger is based at African Oxygen Limited where he is the General Manager for all the Linde Operations in Sub-Saharan Africa outside of South Africa. He

brings to the Board a wealth of experience gained over 25 years in general management, inancial audits and advisory services, business planning, inancial and management reporting, strategy formulation, implementation and reviews.

Marius Kruger holds a post graduate degree in Finance and is an associate member of the Chartered Institute of Management Accountants in the United Kingdom.



Born in 1971, Christopher Hart de Keating joined LGI in July 2015 as Chief Executive Oicer. He earned a ‘Maîtrise Audit et Contrôle de Gestion’ from the University of Paris Dauphine, France. After a fruitful career in diferent renowned companies, Christopher Hart de Keating decided to embark on an umpteenth challenge by joining Les Gaz Industriels Limited. This accomplished leader has a track record of more than 10 years in senior management positions. Before joining LGI, he was the Chief Operating Oicer of one of the leading automobile dealerships on the island. Christopher Hart de Keating has been involved in the activity of the cluster Textile Madagascar (as Chairperson in 2009) and the Association of Mauritian Manufacturers.

Chief Executive Oicer

Christopher

Hart de Keating

Born in 1973, Salim Hatteea joined LGI in December 2015 as Finance and Administrative Manager. He holds a BSc (Hons) in Accounting from the University of Mauritius and is a Fellow of the Association of Chartered Certiied Accountants (ACCA). He is also a member of the Mauritius Institute of Professional Accountants (MIPA). Salim Hatteea has extensive experience in his ield, having worked in both practice and industry in Mauritius and London, in a career spanning over more than 15 years. Before embarking on the LGI challenge, Salim Hatteea has occupied various inance positions in diferent sectors namely, marketing and advertising, healthcare, automobile, retail, in addition to his experience in practice (accounting, audit, taxation, management consulting).

Finance and

Administrative

Manager

Salim

Hatteea

Born in 1973, Nicholas de L’Estrac was appointed Group Operations Manager to bring his thorough expertise to LGI. Deined as a specialist in Lean Management and a Six Sigma practitioner, he joined the Senior Management Team in May 2014 after occupying various senior roles in his previous employments. Passionate and result-oriented, he completed a Master’s Degree in France at the ‘Institut Supérieur de Gestion’ and is responsible for the overall management of the operations at LGI and within its Group of Companies.

Prior to joining LGI, Nicholas de L’Estrac consulted in Operational Excellence for a year and a half. This practice followed a 15-year experience in the printing industry where he occupied various senior management roles in commercial and operational ields. Nicholas de L’Estrac is also involved in the education sector as former Chairman of Ecole du Nord and current Treasurer of Lycée des Mascareignes.

Group Operations

Manager

Nicholas de

L’Estrac

Senior Managers’

Proiles

Christopher

Hart de Keating

Nicholas

de L’Estrac

Salim Hatteea


19

Providing constant

to our customers

support

Gas reticulation for plasma cutting machine

Reticulated gassystem providers

Assembling a change-over panel


None of the other Directors or Senior Oicers holds direct or indirect interest in the shares of the Company.

Interests of the Directors and other Senior Oicers in the equity of the Company as at June 30, 2016

Directors’ dealing in shares of the Company

With regard to Directors’ dealings in the shares of LGI, the Directors conirm that they have followed the principles set in the DEM rules on restrictions on deals by Directors.

During the year under review none of the Directors bought or sold any LGI shares.

Direct Interest Indirect Interest

Directors Number of Ordinary Shares Number of Ordinary Shares

Antoine L. Harel Nil 14,946

Michel Guy Rivalland Nil 68,418

Attendance to Board and Committee meetings held during the period under review

Directors BoardCorporate

Governance

Audit

Committee

SHEQ

Committee

Antoine L. Harel 4/4 4/4 - -

Catherine McIlraith 4/4 4/4 5/5 -

Christopher Hart de Keating 4/4 - - 4/4

Marius Kruger 4/4 4/4 5/5 2/2

Basil Miller 3/3 - - 3/3

Michel Guy Rivalland | Laurent Bourgault du Coudray 4/4 - 5/5 -

Mark Brett Wheatcroft 0/1 - - 0/1

Board of Directors

The Board of Directors is responsible for setting the direction of the Company through the establishment of strategic objectives and key policies. The Board has the responsibility of discussing and reviewing planning issues, operation and inancial performances, acquisitions and disposals, capital expenditure, risk issues, stakeholders’ communications and other matters falling within its ambit. It further ensures that proper systems of management and internal controls are in place. It inally oversees compliance and risk management. The Chairman, who is a Non-Executive Independent Director, has a role which is distinct from that of the Chief Executive Oicer of LGI. The Company has a unitary Board of Directors which, at June 30, 2016, comprised ive Non-Executive members of whom two are Independent.

The Board does not consider it necessary to have more than one executive member in view of the size of LGI and that of the Board. This structure ensures an appropriate and eicient balance of knowledge of the business and independence and objectivity for the efective execution of the Board’s responsibilities.

With a view to enhance the Board’s efectiveness, Board and Committee performance is reviewed periodically. The Directors are entitled to seek independent professional advice at LGI’s expense. A Board charter is yet to be inalised.

During the period under review, the Board of Directors met on four occasions.

Shareholding proile

Shareholders holding more than 5% of the Company

Proile of Company’s Shareholders as at June 30, 2016Ownership of ordinary share capital at June 30, 2016 was as follows:

Size of ShareholdingNumber

of Shareholders

Number of

Shares OwnedHolding %

1 - 500 158 19,783 0.76

501 - 1,000 42 32,263 1.24

1,001 - 5,000 51 133,218 5.10

5,001 - 10,000 13 90,315 3.46

10,001 - 50,000 15 331,926 12.71

50,001 - 100,000 1 50,963 1.95

100,001 - 250,000 2 285,871 10.94

250,001 - 500,000 2 669,035 25.62

Over 500,000 1 998,018 38.22

Total 285 2,611,392 100.00

Category of ShareholdersNumber of

Shareholders

Number of Shares

OwnedHolding %

Individuals 231 487,084 18.65

Insurance and Assurance Companies 2 17,189 0.66

Pension and Provident 5 13,500 0.52

Investment and Trust Companies 5 507,222 19.42

Other Corporate Bodies 42 1,586,397 60.75

Total 285 2,611,392 100.00

Name of Shareholders Number of Shares Owned Holding %

African Oxygen Limited 998,018 38.22

United Investments Ltd 503,015 19.26

Brista & Cie 332,320 12.72

Share price information

2012 2013 2014 2015 20160.00

60.00

120.00

20.00

80.00

140.00

40.00

100.00

160.00

Corporate

Governance Report

Corporate

Governance Report

Rs.

Year




Risk management

The Directors acknowledge the ultimate responsibility of the Board for the risk management process and the necessity of having the relevant processes in place within LGI. However, Management is accountable to the Board for the design, implementation and detailed monitoring of the risk management process. Risk issues relating to safety, health, environment and quality are addressed directly by the Board while the others are discussed at the Audit Committee that makes its recommendations thereon to the Board.

Risk in the widest sense includes market risk, credit risk, liquidity risk, operational risk and commercial risk. The most signiicant risks currently faced by the Company include those pertaining to the economic environment, the supply chain, regulations, skills and people, technology as well as foreign currency.

LGI has implemented an ongoing risk management process endorsed by the Board to identify and assess risks, develop

and implement risk mitigation plans as part of the strategic management process, monitor progress in implementing risk mitigation plans and report company risk management activities to risk governance structure.

• Risk management responsibilities have been deined across LGI. The Chief Executive Oicer and his management team are responsible for embedding the risk management policy as approved by the Board.

With the inalization of its Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP), LGI is now prepared on all business risks which have been developed in the BCP/DRP document. The scope of the document (BCP/DRP) addresses the business continuity requirements for LGI. The document creates a framework to resume operations related to critical business processes in the event of disaster incidents resulting into outages considering worst case scenarios.

Management of key risks

Operational risksOperational risks may result from the execution of the Company’s business functions and arise from systems, processes and people through which the Company operates. It includes physical and fraud risks.

Among the physical risks identiied, are unavoidable events such as riots, cyclones and other natural calamities. Other occurrences such as ire or equipment failure can also cause signiicant damage and losses. The Company has set up adequate safety and security systems and has implemented a business continuity and disaster recovery plan. Besides, the Company has subscribed to appropriate insurance policies for the aforesaid events.

The Company regularly performs internal control audits and employees’ education and training to mitigate such risks.

Technology risksKey processes used to develop, deliver and manage our products and services, and support our operations are highly dependent on technology. Thus the Company’s activities may be severely

impacted by a failure in the use, integrity or availability of our information systems.

Control processes and systems, as well as extensive back-up systems, have been implemented. The Company also holds employee education programmes on a regular basis. Furthermore, our Code of Conduct, signed by all employees, covers the handling of information with a view to mitigating the above-mentioned threats.

Reputational risksReputational risks arise from adverse perception on the part of customers, counterparties, shareholders, investors or regulators. To control the reputational risks with the same irmness as risks to our tangible assets, the Company has opted for optimizing the reputation of its brands through implementation of quality systems. Besides, the Company has implemented strong corporate governance practices to enhance transparency and business integrity.

Internal audit function (cont’d)

Systems and areas coveredThe internal audit plan which is approved by the Audit Committee is based on the principles of risk management to align coverage and efort with the degree of risk attributable to the areas audited.

During the year under review, the Internal Auditor performed the following audit visits during which the system controls listed below have been audited:

(a) Business Continuity Plan / Disaster Recovery Plan Review; (b) Post-Implementation review of Navision ERP:

Proposed recommendations in respect to issues identiied were discussed with Management and internal audit reports submitted to the Audit Committee.

Corporate Governance Committee

The Corporate Governance Committee presently comprises three members, namely Mr. Antoine L. Harel (Chairman), Mrs Catherine McIlraith and Mr. Marius Kruger, appointed on the Committee on September 10, 2015.

The Committee met four times during the inancial year under review. The Chief Executive Oicer attends the Committee’s meetings whenever required. The Company Secretary acts as secretary to the Committee.

The Committee fulilled its responsibilities for the year under review, in compliance with its formal terms of reference that were approved by the Board of Directors.

The Committee’s terms of reference include key areas that are the remit of a nomination and remuneration committee. The Committee also develops the Company’s general policy on corporate governance in accordance with the Code of Corporate Governance.

The Corporate Governance Committee is authorised to obtain, at the Company’s expense, professional advice both within and outside the Company in order for it to perform its duties.

Les Gaz Industriels Limited’s (LGI) commitment to sustainable development as a strategic priority encompasses its commitment towards SHEQ. A SHEQ Committee was set up on September 27, 2013 to assist the Board in overseeing the efectiveness of SHEQ management systems within LGI and its subsidiary and to make recommendations to the Board on SHEQ issues.

The SHEQ Committee presently consists of two members, namely Messrs Basil Miller (Chairman) and Christopher Hart de Keating. The Committee met four times during the year under review. The SHEQ Manager, the Group Operations Manager and the Technical and Development Executives attend the Committee’s meetings.

Internal audit function

Internal ControlsInternal control is a process designed to provide reasonable assurance regarding the achievement of the Company’s objectives and is performed by the Board of Directors, the management and other personnel. It is applicable to, and is built into, various business processes so as to cover all signiicant enterprise areas.

Systems and processes have been implemented and are regularly reviewed by the internal audit function to ensure that they are efective and are being adhered to. Several reviews were performed by the Internal Audit during the year. Internal audit reports are reviewed by the Audit Committee which makes its recommendations for modiications or upgrading of systems and processes as and when necessary to enhance their efectiveness.

Internal AuditThe scope of the internal audit function is to maintain and improve the process by which risks are identiied and managed. It also helps the Board of Directors to discharge its responsibilities to maintain and strengthen the internal control framework. The internal audit function is performed by Messrs PricewaterhouseCoopers (PWC), Public Accountants. The Internal Auditors has unrestricted access to the records, management and employees of LGI.

Reporting LinesThe internal auditors have a direct reporting line to the Audit Committee and maintain an open and constructive communication channel with the executive management. They also have direct access to the Chairperson of the Audit Committee.

Corporate

Governance Report

Audit Committee

The Audit Committee is chaired by Mrs Catherine McIlraith and comprises Messrs. Michel Guy Rivalland and Marius Kruger. The Committee met ive times during the period under review. The Chief Executive Oicer, the Finance and Administrative Manager, as well as the internal and external auditors, attend the Committee’s meetings. The Company Secretary acts as secretary to the Committee.

The Committee fulilled its responsibilities for the year under review, in compliance with its formal terms of reference that were approved by the Board of Directors.

In discharging its responsibilities, the Audit Committee reviews:• the quality of financial information and other public and

regulatory reporting;• the Company’s internal control systems and procedures for

identifying business risks;• the Company’s control system for identifying and mitigating

risks;• the Company’s policies for preventing or detecting fraud;• the Company’s policies for ensuring that the Company complies

with the relevant regulatory and legal requirements;• any other duties detailed in the Committee’s Terms of

Reference approved by the Board of Directors and submits its recommendations to the Board for appropriate decision making.

Safety, Health, Environment & Quality (SHEQ) Committee




Code of ethics

Inextricably linked to good corporate governance is LGI’s Code of Ethics. The Company has always espoused the highest ethical standards of business conduct and full compliance with applicable laws, regulations and industry standards. LGI aims to earn the trust of customers, shareholders, colleagues, suppliers and communities through honesty, performance excellence, good corporate governance and accountability. LGI expects people to respect conidential information, company time and assets.

Moreover, the Company believes in open and honest communication, fair treatment and equal opportunities, and supports the fundamental principles of human rights.

The Directors believe that the ethical standards of LGI, as stipulated in the Code of Ethics, are monitored and are being met.

Where there is non-compliance, the appropriate discipline is enforced consistently as LGI responds to ofences and prevents recurrence.

Corporate Social Responsibility

LGI has a strong culture of social responsibility. The objective is to assist wisely and constructively by building on the commitment of our people and our community-based projects, thereby making a sustainable diference to society. This is relected by our selection of Non-Governmental Organisations (NGOs), whereby each of them has been carefully evaluated in terms of the activities it performs and how these it with the Company’s core values and CSR Strategy to long-term business objectives. At LGI, we believe that Corporate Social Responsibility is a continuing commitment to behave ethically and contribute to economic development while improving the quality of life of our workforce and their families as well as of the local community and society at large.

The speciic objectives of the CSR Fund are to:

• Ensure that all beneiciaries have a decent shelter and enhance their living conditions;

• Encourage children to be at school and have necessary pedagogical materials to improve their academic performance;

• Enhance social awareness and skills among low-income households;

• Increase employability prospects and enable beneiciaries to get out of absolute poverty;

• Promote eco-friendly awareness;• Address health problems of people living in vulnerability• Reduce social ills by channelling beneiciaries towards

sports and leisure activities.

Dividend policy

No formal dividend policy has been determined by the Board. Dividends are distributed after considering the Company’s performance and proitability, gearing, investment needs, capital expenditure requirements and growth opportunities.

The dividend per share, dividend cover and dividend yield over the last 5 years are given in the table below:

* On September 21, 2016, the Board of Directors approved a inal dividend of Rs. 1.20 per share for the inancial year ended June 30, 2016. The total dividend amount for the year will therefore be Rs. 2.70. Annual Dividend Cover will thus be 1.79 times and Dividend Yield will be 3.86%.

Management of key risks (cont’d)

Financial risksThe Company is exposed to various inancial risks, namely credit, liquidity and currency risks. These may be deined as the risk that cash lows and inancial assets are not managed in a cost-efective way. The policies adopted to minimize those risks are summarized below:

Credit riskGiven our current business environment, the credit control procedures have been reinforced to further improve debtors’ management.

Liquidity riskLiquidity risk is the risk that the Company will not be able to meet its inancial obligations as they fall due. The Company inances its operations through cash generated by the business and short-term bank credit facilities. Liquidity risk faced by the Company is

mitigated by having diverse sources of inance available to it and maintaining substantial unutilized bank facilities.

Currency riskThe current business environment in which the Company operates is subject to some major foreign currency risks. The Company has remained prudent in its approach with regard to its foreign currency risk and has opened diferent foreign currency accounts in the main currencies the Company trades, namely United States Dollars, Euros and South African Rands. The objective of doing this was to match foreign currency receipts against foreign currency payments so as to minimise the impact of foreign exchange variations. However, the Company shall use forward exchange contracts to hedge large foreign transactions so as to further reduce its foreign currency risks in situations where it does not have suicient foreign currency to match its foreign commitments.

Other information on inancial risks management is given on note 3 to the Financial Statements on pages 50 to 52.

Corporate

Governance Report


Financial Year Interim / Final Date Declared Dividend per share Dividend cover Dividend yield

(Rs.) (times) (%)

2012 Interim November 4, 2011 2.40 7.04 2.00

2013 Interim November 15, 2012 3.00 1.25 2.14

2014 Interim February 14, 2014 3.00 2.56 2.48

2015 Final September 11, 2015 1.50 (1.06) 1.43

2016* Interim June 3, 2016 1.50 3.22 2.14

Employee share option plan

No employee share option plan is available.

Remuneration policy

The Company strives to provide remuneration and incentive arrangements that are market-competitive, consistent with best practice and that support the interests of the shareholders. The reward structure for Directors and Senior Executives aims at attracting and motivating experienced individuals capable of leading and managing the Company successfully and enhancing shareholder value. Executive and Senior Management remuneration includes base pay and variable performance-related incentives.

Third party management agreement

There was no agreement between third parties and the Company or its subsidiary during the year under review.

Remuneration of Directors

The Directors’ remuneration is given on page 8. It has been disclosed globally due to commercial sensitivity of the information. None of the Directors received remuneration from the subsidiary or for serving as the Company’s representatives on boards external to the Group.

Shareholders’ agreement afecting the governance of the Company by the Board

To the knowledge of the Company, there has been no such agreement with any of its Shareholders for the year under review.

Directors’ fees

Non-Executive as well as Independent Directors are paid Directors’ fees and fees in relation to their appointment on the Board and on the Audit, Corporate Governance and Safety, Health, Environment & Quality (SHEQ) Committees. No Directors’ fees are paid to the Company’s Directors sitting on the Board of the Company’s subsidiary.

Related party transactions

Related party transactions are detailed on pages 70 and 71 of the inancial statements.

Material clauses of the Company’s

memorandum and articles of association

The Company’s memorandum and articles of association do not provide any ownership restriction or pre-emption right and other material clause that needs to be disclosed.



Sustainability reporting

LGI strives to be a sustainable enterprise that is proitable, cares about the health and welfare of its employees and acknowledges the importance of environmental protection.

Safety, Health, Environment and Quality (SHEQ) is an integral part of how LGI does business, and is encompassed in LGI’s spirit as one of our values. LGI is committed to excellence in managing all activities in such a way that it ensures the protection of the health and safety of colleagues, contractors, suppliers, customers and local communities, as well as the protection of the environment.

Sustainability is closely related to issues connected with SHEQ. The inspirational goal of zero harm to people or the environment motivates us at LGI to continually improve performance.

Underpinning this, LGI has a well-developed Integrated Management System Standards (IMSS), which is based on total quality management principles and ensures compliance with the relevant legislative requirements. The system allows for integrated audit risks assessments and management reviews.

Over and above the system, LGI has a series of speciic audits, namely the Engineering audits done by professional consultants.Audit indings are then rated based on their potential impact on the business and Management has a speciic number of days to close these indings, depending on their importance and urgencies.

The protection of the environment is also another important aspect of how we conduct our business. The Company is committed to minimise the environmental impact of its products, to conserve natural resources, to prevent pollution and to comply with all internal company standards and external regulations. Company standards cover all operational aspects and activities that could afect the safety and health of people and the environment.

LGI’s objective is to be proitable in such a manner that it is accountable to the Company’s employees, the broader society, communities in which the Company operates and other stakeholders. Engagement with its stakeholders internally and externally is important for developing constructive relationships. LGI works closely with government bodies, communities and industry associations to meet the challenges of sustainable development.

Forthcoming Annual Meeting

A proxy form is enclosed for those shareholders unable to attend.

Shareholder information

Planned events Month

Publication of condensed results for 1st quarter November

Consider declaration of dividend – Interim November/December

Annual Meeting of Shareholders November/December

Publication of condensed results for 2nd quarter February

Publication of condensed results for 3rd quarter May

Consider declaration of dividend - Final June

Financial year end June 30

Publication of condensed audited results for previous year September

Non-audit services rendered by external auditor

Services rendered 2016 2015

Review of quarterly reporting and corporate governance report Rs 95,000 Rs. 95,000

Company secretary

All the Directors have access to the advice and services of HM Secretaries Ltd., the Company Secretary, who is in turn responsible to the Board for ensuring the proper administration of

Board proceedings. The Company Secretary provides guidance to Directors on matters of corporate governance and with regard to their responsibilities as Directors in the statutory environment in which the Company operates.

Safety, health and environment

LGI complies with the Occupational Safety and Health Act 2005 and other legislative and regulatory frameworks. It is committed to sustainable development and ensures that its operations are conducted in a way that minimizes its impact on the environment and on the society at large. LGI is fully dedicated to occupational health, safety and environmental management.

The company spares no efort to ensure the health and safety of all stakeholders, and the protection of the environment. The Directors recognise that the above issues are fundamental for sustaining the growth of the Company.

In LGI’s dedication to occupational health, safety and environmental management, it will:

• Comply with all occupational health, safety and environment legislations in force in the country;

• Provide and maintain a safe and healthy working environment for the employees, customers and the public at large;

• Train the employees in all aspects of occupational health, safety, ire prevention and emergency procedures;

• Enforce health and safety measures and discipline in the workplace;

• Provide suicient support and encouragement at all levels in the Company to ensure that continuous improvement is achieved in health, safety and environmental protection

• Ensure all line managers have responsibility and SHEQ accountability for occupational health, safety and environmental management;

• Promote the principles of Responsible Care to all the employees;• Help the customers who use the Company’s products to do

so in a safe and environmentally acceptable manner;• Learn from incidents and share the lessons with stakeholders.

LGI’s Safety, Health, Environment and Quality (SHEQ) policy commits to the safety of people and preservation of the environment.

LGI’s vision for SHEQ relects its corporate commitment to “SHEQ, 100% of our behaviour, 100% of the time”.

The safety of employees and contractors, suppliers and the local communities within which operations function, is a prerequisite to any business that the Company undertakes. The protection of the environment is a high priority. LGI is committed to minimise the environmental impact of products, to conserve natural resources, to prevent pollution and to comply with all internal company standards and external regulations.

Company standards cover all operational aspects and activities that could afect the safety and health of people and the environment. Critical SHEQ interventions are tracked and measured by means of leading and lagging indicators. Performance targets are agreed with the business and set at the beginning of the inancial year and then monitored and reported to the top Management.

Donations

Charitable donationsCharitable donations made by LGI during the year ended June 30, 2016 to 3 organisations amounted to Rs. 40,953 (2015: Rs. 58,752 to 3 organisations).

Political contributionsNo political contributions were made by LGI or its subsidiary operating in Madagascar during the year under review (2015: Nil).

Corporate

Governance Report

Corporate social responsibility (cont’d)

The CSR Fund for the year is calculated at two per cent of the previous year’s chargeable income. No CSR contribution is payable for the current inancial year (2015: Rs. nil). However, the Board approved a CSR fund of Rs. 20,000 to support social integration and economic development in the locality.

LGI has a CSR Committee which involves its employees. The CSR Committee met several times during the year 2015/2016 and liaised

with the diferent NGOs of the locality. The CSR Committee gave priority to NGOs which through their speciic actions also promote universal values such as tolerance, non-discrimination and equal opportunity. The Committee, whenever possible and relevant, invited NGOs to provide training and awareness on their objectives to the personnel of LGI who voluntarily participated in some of the above-mentioned NGOs’ programmes.



Les Gaz Industriels Limited and its Subsidiary Annual Report 201628 29Les Gaz Industriels Limited and its Subsidiary Annual Report 2016 29

We certify that, to the best of our knowledge and belief, the Company has iled with the Registrar of Companies all such returns as are required of the Company under the Companies Act 2001.

For HM Secretaries LtdSecretary

September 21, 2016

Statement of Directors’ Responsibilities

The Directors acknowledge their responsibilities for:

i. Adequate accounting records and maintenance of efective internal control systems;

ii. The preparation of inancial statements which fairly present the state of afairs of the Company as at the end of the inancial year and the results of its operations and cash lows for that period and which comply with International Financial Reporting Standards (IFRS);

iii. The selection of appropriate accounting policies supported by reasonable and prudent judgements.

The external auditors are responsible for reporting on whether the inancial statements are fairly presented.

The Directors report that:

i. Adequate accounting records and an efective system of internal controls and risk management have been maintained;

ii. Appropriate accounting policies supported by reasonable and prudent judgements and estimates have been used consistently;

Signed on behalf of the Board of Directors:



Corporate

Governance ReportSecretary’s

CertiicateYear Ended June 30, 2016

(a) International Financial Reporting Standards have been adhered to.(b) The Code of Corporate Governance has been adhered to. Reasons have been

provided where there has not been compliance.


Les Gaz Industriels Limited and its Subsidiary Annual Report 201630 31

Contributing to patients’

well-being with our high

purity gases

Decanting of liquid oxygen

Innovatingwith our automated

production process

Air separation unit plant in operation


Board ofDirectors’ ReportYear Ended June 30, 2016

Dear Shareholders,

The Board of Directors of Les Gaz Industriels Limited (LGI) is pleased to submit its report for the year ended June 30, 2016.

The economic environment has not evolved much during this inancial year, with the Mauritian economy experiencing a 3.5% growth rate down from 3.6% in the previous year and standing lower than what was initially forecasted.

Our primary sector of activity, the medical gas market, has been stable in terms of consumption but sufered a drop in prices, mainly due to the fact that suppliers in this sector have been most willing to accommodate customers’ requirements. Furthermore, some established sectors which use LGI’s products, such as the construction industry, have registered negative growth.

These were fortunately partly ofset by increasing demand from some expanding industries such as the food industry and the wholesale and retail trade. On the other hand, our operations in Madagascar beneited from an economy which remained fairly stable with an annual GDP growth of about 3%.

Operations

LGI is dynamically reviewing and adapting its strategy in order to strengthen its growth potential, especially in the current economic climate. In parallel, we are building on our human capital and we are investing in the required infrastructure. Our new management team is now fully settled and is looking forward to the challenges ahead.

Safety of our stakeholders remains central to our operations. Our safety standards remain aligned to those of our partners and investors namely Afrox, which itself is part of the Linde Group. We also take an uncompromising stance on the quality of our products.

Financial Highlights and Business Review

Group revenue amounted to Rs. 121.1m in 2016, which represents an increase of 5.3% compared to revenue of Rs. 115.1m in 2015. Sales increased in both the local and regional markets.

Overheads have been contained and remain at an average of 47% of turnover.

Net profit after tax registered a satisfactory increase from Rs. 2.1m in 2015 to reach Rs.10.6m.

This resulted in an increase in net asset value per share of the Group from Rs. 90.28 in 2015 to Rs. 91.38 in 2016.

Capital expenditure amounted to Rs. 5.2m in 2016, decreasing from Rs. 10.3m in 2015. Investment in capital expenditure is closely monitored, ensuring that such expenditure will create wealth for LGI.

Shareholder Return

LGI has strong reserves which have been built up over the years. This has allowed the Company to declare dividends every year, with very few exceptions. In June 2016, the Board declared an interim dividend of Rs. 1.50 per share, payable in July 2016. In September 2016, a inal dividend of Rs. 1.20 per share was declared, with payment in November 2016. The Board has always adopted a prudent approach in relation to dividend policy. This approach shall prevail.

The Stock Exchange performance during the year continued to be afected by uncertainty, resulting in the DEMEX index fall from 206.81 at 30 June 2015 to 193.91 one year later. LGI’s performance on the DEM market did not escape the trend and the share price of the Company fell from Rs. 105.00 to Rs. 70.00. Dividend yield was 2.14% in 2016 (adjusted to 3.86% after the inal dividend) compared to 1.43% last year.

The Board

Our main shareholder and technical partner Afrox decided to review its representatives on the Board of LGI. Subsequently, one of its two representatives, Mr. Mark Brett Wheatcroft, was replaced by Mr. Basil Miller during the year.

Mr. Miller holds diplomas in mechanical engineering, general management and risk management and is a qualiied artisan (welding and sheet metal). His vast experience in the gas industry is and will be of enormous beneit to LGI.

During the year, the Board and the Management of LGI have worked closely together to design the strategies that will shape the future of the company.

Corporate Social Responsibility &Human Resources

Our people are the most valuable asset to us and we therefore regard investment in our people as an investment in our future. Having personnel with the right skills and who derive job satisfaction is intricately linked with the continued success of the Company.

We are also committed to our local community and we take all opportunities to maintain our involvement with the community of the region where we are located.

We are also committed to maintain our contribution to the development of the communities around LGI’s premises.

Safety, Health, Environment And Quality

The importance of Safety, Health, Environment and Quality (SHEQ) remains critical for the survival of organisations operating in our ield. Since 2013, a Safety, Health, Environment and Quality Board Committee meets regularly and reviews all matters pertaining to SHEQ. The Company already adheres to the highest levels of best practice and strictly complies with the rules and regulations in its diferent areas of operation. This does not refrain us from constantly improving our processes and procedures with the usual and invaluable support of Afrox.

Outlook

A new strategy has been designed and will act as the road map of the Company in the short term. Its implementation has already started to bring in results.

LGI will continue to move forward with the implementation of this plan in order to ensure long term sustainability and wealth creation, both locally and in the region.

Despite the uncertain economic times prevailing, which looks set to continue at least in the short term, the Board and Management are conident that LGI will operate successfully in the coming years.

Appreciation

Though the current year has been diicult and challenging for LGI, the company has been able to improve on the previous year. In the process, we have strengthened our position as one of the main players in the gas industry in Mauritius. The market values our products for both their quality and safety features.

We are pleased to note that the support of our partners, customers, suppliers and other stakeholders has, again, been critical to our progress during the year.

Finally, none of the above would have been possible without the commitment and dedication of the Management and staf of LGI. The Board would like to put on record its thanks and appreciation to the Chief Executive Oicer and personnel for the work done.

The Board is conident in the capabilities of the team to rise to the challenges ahead and ensure continued success of our Group.

On behalf of the Board,

Antoine L. Harel

Chairman

September 11, 2016

Board of Directors’ ReportYear Ended June 30, 2016

Les Gaz Industriels Limited and its Subsidiary Annual Report 2016 Les Gaz Industriels Limited and its Subsidiary Annual Report 201634 35

Revenue In million Mauritian Rupees

Profit after Taxation In million Mauritian Rupees

Dividends In million Mauritian Rupees

119.44 - 2016

113.71 - 2015

119.31 - 2014

127.61 - 2013

194.02 - 2012

7.05 - 2016

3.92 - 2015

7.83 - 2014

7.83 - 2013

6.27 - 2012

12.60 - 2016

-4.17 - 2015

20.06 - 2014

9.81 - 2013

44.13 - 2012

Earnings Yield per Share In percentage

Market Price per Share In Mauritian Rupees

2012

2013

2014

2015

2016

14.0

8

2.6

8

2012

2013

2014

2015

2016

120.00

140.00

121.00

105.00

70.00

6.3

5

6.8

9

-1.5

2

Price Earning Ratio Number of times

Dividend Cover per Share Number of times

Dividend Yield per Share In percentage

Dividend per Share In Mauritian Rupees

Earnings per Share In Mauritian Rupees

14.51 - 2016

-65.75 - 2015

15.75 - 2014

37.27 - 2013

7.10 - 2012

4.83 - 2016

-1.60 - 2015

7.68 - 2014

3.76 - 2013

16.90- 2012

1.79 - 2016

-1.06 - 2015

2.56 - 2014

1.25 - 2013

7.04 - 2012

2.70 - 2016

1.50 - 2015

3.00 - 2014

3.00 - 2013

2.40 - 2012

Net Assets per Share In Mauritian Rupees

2012

2013

2014

2015

2016

2.0

0

2.1

4 2.4

8

1.4

3

3.8

6

2012

2013

2014

2015

2016

84.7788.96

93.75 91.37 93.06

Financial

Highlights & RatiosJune 30, 2016

Financial Highlights & RatiosJune 30, 2016


Independent Auditors’ Report

to the Members

This report is made solely to the members of Les Gaz Industriels

Limited (the “Company”), as a body, in accordance with Section 205 of the Companies Act 2001. Our audit work has been undertaken so that we might state to the Company’s members those matters

we are required to state to them in an auditors’ report and for no

other purpose. To the fullest extent permitted by law, we do not

accept or assume responsibility to anyone other than the Company

and the Company’s members as a body, for our audit work,

for this report, or for the opinions we have formed.

Report on the Financial Statements

We have audited the group inancial statements of Les Gaz Industriels Limited and its subsidiary (the “Group’’) and the

Company’s separate inancial statements on pages 38 to 71 which comprise the statements of inancial position at June 30, 2016, the statements of proit or loss, the statements of proit or loss

and other comprehensive income, statements of changes in

equity and statements of cash lows for the year then ended, and a summary of signiicant accounting policies and other explanatory notes.

Directors’ Responsibility for the Financial Statements

The Directors are responsible for the preparation and fair

presentation of these inancial statements in accordance with International Financial Reporting Standards and in compliance

with the requirements of the Companies Act 2001, and for such internal control as the Directors determine is necessary to enable

the preparation of the inancial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these inancial statements based on our audit. We conducted our audit in

accordance with International Standards on Auditing. Those

Standards require that we comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance whether

the inancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence

about the amounts and disclosures in the inancial statements. The procedures selected depend on the auditors’ judgement,

including the assessment of the risks of material misstatement of the

inancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to

the Company’s preparation and fair presentation of the inancial statements in order to design audit procedures that are appropriate

in the circumstances, but not for the purpose of expressing an

opinion on the efectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates

made by the Directors, as well as evaluating the overall presentation

of the inancial statements.

We believe that the audit evidence we have obtained is suicient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the inancial statements on pages 38 to 71 give a true and fair view of the inancial position of the Group and of the Company at June 30, 2016, and of their inancial performance and their cash lows for the year then ended in accordance with International Financial Reporting Standards and comply with the

Companies Act 2001.

Report on Other Legal and Regulatory Requirements

Companies Act 2001

We have no relationship with, or interests in the Company or its

subsidiary, other than in our capacity as auditors and business

advisers and dealings in the ordinary course of business.

We have obtained all information and explanations we have

required.

In our opinion, proper accounting records have been kept by

the Company as far as it appears from our examination of those

records.

Financial Reporting Act 2004

The Directors are responsible for preparing the Corporate

Governance Report. Our responsibility is to report on the extent

of compliance with the Code of Corporate Governance as disclosed

in the Annual Report and on whether the disclosures are consistent

with the requirements of the Code.

In our opinion, the disclosures in the Annual Report are consistent

with the requirements of the Code.

BDO & CoChartered Accountants

Per Georges Chung Ming Kan, F.C.C.ALicensed by FRC

Port Louis

Mauritius

September 21, 2016

Value Added

StatementJune 30, 2016

2016 2015 2014 2013 2012Rs. Rs. Rs. Rs. Rs.

Revenue 119,443,880 113,708,908 119,307,353 127,606,000 194,015,542Paid to suppliers for materials and services (60,760,448) (74,588,063) (57,826,070) (76,949,097) (107,378,082)Value added 58,683,432 39,120,845 61,481,283 50,656,903 86,637,460

Distributed as follows:

Salaries, wages and other beneit to employees 30,076,740 27,034,541 24,177,661 24,885,979 22,463,189

Government taxes on earnings

Taxation 3,434,350 3,209,457 3,406,765 2,331,623 7,855,097

Providers of capital

Dividend to shareholders 7,834,176 - 7,834,176 7,834,176 6,267,341

Retained to ensure future growth

Depreciation 12,572,139 13,049,899 13,840,967 13,624,754 12,190,476Proit retained for the year 4,766,027 (4,173,052) 12,221,714 1,980,371 37,861,357

17,338,166 8,876,847 26,062,681 15,605,125 50,051,833

Total wealth distributed and retained 58,683,432 39,120,845 61,481,283 50,656,903 86,637,460

Distributed as follows: 2015 2015 2014 2013 2012Rs. Rs. Rs. Rs. Rs.

Salaries, wages and other beneit to employees 30,076,740 27,034,541 24,177,661 24,885,979 22,463,189Government taxes on earnings 3,434,350 3,209,457 3,406,765 2,331,623 7,855,097Providers of capital 7,834,176 - 7,834,176 7,834,176 6,267,341Retained to ensure future growth 17,338,166 8,876,847 26,062,681 15,605,125 50,051,833

58,683,432 39,120,845 61,481,283 50,656,903 86,637,460

Paid to suppliers for materials and services

Cost of sales 46,488,833 50,880,518 52,342,602 63,214,327 98,899,348Selling and distribution expenses 17,611,800 17,640,376 15,415,606 18,275,142 18,106,030Administrative expenses 38,014,816 35,730,268 30,308,645 28,485,494 29,968,648Less staf cost (30,076,740) (27,034,541) (24,177,661) (24,885,979) (22,463,189)Less depreciation (12,572,139) (13,049,899) (13,840,967) (13,624,754) (12,190,476)Other operating income (1,723,050) (2,642,073) (2,499,526) (1,476,979) (3,280,233)Share of (proit)/loss from Joint Venture 2,534 38,900 (46,010) 9,567 -

Finance costs 3,014,394 1,512,386 323,381 226,345 (1,662,046)Exceptional item - 11,512,128 - 6,725,934 -

60,760,448 74,588,063 57,826,070 76,949,097 107,378,082


Statements of

Financial Position June 30, 2016

THE GROUP THE COMPANY

Notes 2016 2015 2016 2015ASSETS Rs. Rs. Rs. Rs.

Non-current assets

Property, plant and equipment 5 259,478,841 266,312,219 259,478,841 266,312,219Intangible assets 6 1,899,844 2,763,987 1,899,844 2,763,987Investment in subsidiary company 7 - - 1,513,931 1,513,931

261,378,685 269,076,206 262,892,616 270,590,137

Current assets

Inventories 8 13,718,299 14,035,739 12,118,826 12,572,864Trade and other receivables 9 26,900,303 38,513,548 31,780,825 40,124,469Cash and cash equivalents 29,805,601 1,736,716 28,731,691 1,736,716

70,424,203 54,286,003 72,631,342 54,434,049

Total assets Rs. 331,802,888 323,362,209 335,523,958 325,024,186

EQUITY AND LIABILITIES

Capital and reserves

Stated capital 11 26,114,079 26,114,079 26,114,079 26,114,079Revaluation and other reserves 12 53,409,825 53,271,125 50,680,800 51,051,153Retained earnings 159,110,547 156,364,214 166,214,483 161,448,456Owners' interest 238,634,451 235,749,418 243,009,362 238,613,688

LIABILITIES

Non-current liabilities

Borrowings 13 3,822,545 11,395,599 3,822,545 11,395,599Deferred tax liabilities 14 25,701,873 22,332,880 25,701,873 22,332,880Retirement beneit obligations 15 3,311,601 2,664,999 3,311,601 2,664,999

32,836,019 36,393,478 32,836,019 36,393,478

Current liabilities

Trade and other payables 16 47,423,451 39,450,603 46,769,610 39,031,839Borrowings 13 8,991,879 11,768,710 8,991,879 10,985,181Dividends payable 25 3,917,088 - 3,917,088 -

60,332,418 51,219,313 59,678,577 50,017,020

Total liabilities 93,168,437 87,612,791 92,514,596 86,410,498

Total equity and liabilities Rs. 331,802,888 323,362,209 335,523,958 325,024,186

These inancial statements have been approved for issue by the Board of Directors on September 21, 2016

Antoine L. Harel Christopher Hart de KeatingChairman Chief Executive Oicer

The notes on pages 43 to 71 form an integral part of these inancial statements.Auditors' Report on page 37.

Statements of

Proit or LossYear Ended June 30, 2016


Notes 2016 2015 2016 2015Rs. Rs. Rs. Rs.

Revenue 17 121,148,996 115,070,509 119,443,880 113,708,908

Cost of sales 18 (47,837,727) (50,608,064) (46,488,833) (50,880,518)

Gross proit 73,311,269 64,462,445 72,955,047 62,828,390

Other income 19 1,196,326 1,562,073 1,723,050 2,642,073

Selling and distribution expenses 18 (18,163,606) (18,329,658) (17,611,800) (17,640,376)

Administrative expenses 18 (38,430,041) (36,411,592) (38,014,816) (35,730,268)

17,913,948 11,283,268 19,051,481 12,099,819

Finance costs 20 (3,896,555) (4,467,689) (3,014,394) (1,512,386)

Proit from ordinary activities 14,017,393 6,815,579 16,037,087 10,587,433

Share of loss from joint venture 21 (2,534) (38,900) (2,534) (38,900)

Proit before exceptional items 14,014,859 6,776,679 16,034,553 10,548,533

Exceptional items 22 - (1,512,128) - (11,512,128)

Proit/(loss) before taxation 23 14,014,859 5,264,551 16,034,553 (963,595)

Taxation 10(a) (3,434,350) (3,209,457) (3,434,350) (3,209,457)

Proit/(loss) for the year Rs. 10,580,509 2,055,094 12,600,203 (4,173,052)

Earnings per share 24 Rs. 4.05 0.79

The notes on pages 43 to 71 form an integral part of these inancial statements.Auditors’ Report on page 37.


Statements of Proit or Loss and Other Comprehensive IncomeYear Ended June 30, 2016


Notes 2016 2015 2016 2015Rs. Rs. Rs. Rs.

Proit/(loss) for the year 10,580,509 2,055,094 12,600,203 (4,173,052)

Other comprehensive income:

Items that will not be reclassiied to proit or loss:Remeasurement of post employment beneit obligations 12 (435,710) (2,380,955) (435,710) (2,380,955)Deferred tax relating to components of other

comprehensive income 12 65,357 357,143 65,357 357,143

Items that may be reclassiied subsequently toproit or loss:Exchange diferences on translating foreign operations 12 509,053 1,752,835 - -

Other comprehensive income for the year 138,700 (270,977) (370,353) (2,023,812)

Total comprehensive income for the year Rs. 10,719,209 1,784,117 12,229,850 (6,196,864)


Statements of

Changes in EquityYear Ended June 30, 2016

Actuarial

Share Share Translation Revaluation gains/(losses) Retained

Note Capital Premium Reserve Surplus reserve Earnings Total

THE GROUP Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Balance at July 1, 2015 26,113,920 159 2,219,972 55,813,691 (4,762,538) 156,364,214 235,749,418

Proit for the year - - - - - 10,580,509 10,580,509Other comprehensive

income for the year - - 509,053 - (370,353) - 138,700Total comprehensive

income for the year - - 509,053 - (370,353) 10,580,509 10,719,209

Dividends - 2016 25 - - - - - (7,834,176) (7,834,176)

Balance at June 30, 2016 Rs. 26,113,920 159 2,729,025 55,813,691 (5,132,891) 159,110,547 238,634,451

Balance at July 1, 2014 26,113,920 159 467,137 55,813,691 (2,738,726) 154,309,120 233,965,301

Proit for the year - - - - - 2,055,094 2,055,094Other comprehensive

income for the year - - 1,752,835 - (2,023,812) - (270,977)Total comprehensive

income for the year - - 1,752,835 - (2,023,812) 2,055,094 1,784,117

Balance at June 30, 2015 Rs. 26,113,920 159 2,219,972 55,813,691 (4,762,538) 156,364,214 235,749,418

Actuarial

Share Share Revaluation gains/(losses) Retained

Note Capital Premium Surplus reserve Earnings Total

THE COMPANY Rs. Rs. Rs. Rs. Rs. Rs.

Balance at July 1, 2015 26,113,920 159 55,813,691 (4,762,538) 161,448,456 238,613,688

Proit for the year - - - - 12,600,203 12,600,203Other comprehensive income for the year - - - (370,353) - (370,353)Total comprehensive income for the year - - - (370,353) 12,600,203 12,229,850

Dividends - 2016 25 - - - - (7,834,176) (7,834,176)

Balance at June 30, 2016 Rs. 26,113,920 159 55,813,691 (5,132,891) 166,214,483 243,009,362

Balance at July 1, 2014 26,113,920 159 55,813,691 (2,738,726) 165,621,508 244,810,552

Loss for the year - - - - (4,173,052) (4,173,052)Other comprehensive income for the year - - - (2,023,812) - (2,023,812)Total comprehensive income for the year - - - (2,023,812) (4,173,052) (6,196,864)

Balance at June 30, 2015 Rs. 26,113,920 159 55,813,691 (4,762,538) 161,448,456 238,613,688



Statements of

Cash FlowsYear Ended June 30, 2016


Notes 2016 2015 2016 2015Rs. Rs. Rs. Rs.

Cash lows from operating activitiesCash generated from operations 26(a) 47,209,389 14,327,570 45,799,418 15,894,541Interest received 123,050 54,870 123,050 54,870Interest paid (1,280,560) (1,974,093) (1,218,975) (1,963,988)Income tax refunded - 529,518 - 529,518Net cash generated from operating activities 46,051,879 12,937,865 44,703,493 14,514,941

Cash lows used in investing activitiesPurchase of property, plant and equipment (5,248,948) (10,281,758) (5,248,948) (10,281,758)Purchase of intangible assets (19,626) (2,751,141) (19,626) (2,751,141)Proceeds from sale of property, plant and equipment 1,043,500 2,003,704 1,043,500 2,003,704Net cash used in investing activities (4,225,074) (11,029,195) (4,225,074) (11,029,195)

Cash lows used in inancing activitiesDividends paid 25 (3,917,088) - (3,917,088) -

Proceeds from long term borrowings - 28,444,310 - 28,444,310Payment on long term borrowings (7,949,988) (8,111,579) (7,949,988) (8,111,579)Net cash (used in)/from inancing activities (11,867,076) 20,332,731 (11,867,076) 20,332,731

Net increase in cash and cash equivalents Rs. 29,959,729 22,241,401 28,611,343 23,818,477

Movement in cash and cash equivalents

At July 1, (1,094,862) (25,089,098) (311,333) (24,129,810)Increase 29,959,729 22,241,401 28,611,343 23,818,477Efect of foreign exchange rate changes 509,053 1,752,835 - -

At June 30, 26(b) Rs. 29,373,920 (1,094,862) 28,300,010 (311,333)


1. GENERAL INFORMATION

Les Gaz Industriels Limited is a public company incorporated and domiciled in Mauritius. The principal activity of the Company

and the subsidiary company is the manufacture and distribution of medical and industrial gases (in bulk and in cylinders) and

of welding electrodes. The Company also provides welding and cutting equipment and accessories as well as installation of

gas reticulation. The address of its registered oice is 18, Edith Cavell Street, Port Louis and its place of operations is at Pailles Road, G.R.N.W.

These inancial statements will be submitted for consideration and approval at the forthcoming Annual Meeting of shareholders of the Company.

2. SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these inancial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation

The inancial statements of Les Gaz Industriels Limited comply with the Companies Act 2001 and have been prepared in accordance with International Financial Reporting Standards (IFRS). The inancial statements include the consolidated inancial statements of the parent company and its subsidiary company (The Group) and the separate inancial statements of the parent company (The Company). The inancial statements are presented in Mauritian Rupees and all values are rounded to the

nearest unit, except when otherwise indicated.

Where necessary, comparative igures have been amended to conform with change in presentation in the current year. The inancial statements are prepared under the historical cost convention, except that freehold land and buildings are carried at revalued amounts and plant and machinery are stated at deemed cost.

Standards, Amendments to published Standards and Interpretations efective in the reporting period

There are no standards, amendments to published standards and interpretations efective for the irst time in the reporting period.

Standards, Amendments to published Standards and Interpretations issued but not yet efective

Certain standards, amendments to published standards and interpretations have been issued that are mandatory for accounting

periods beginning on or after January 1, 2016 or later periods, but which the Group has not early adopted.

At the reporting date of these inancial statements, the following were in issue but not yet efective:

• IFRS 9 Financial Instruments• IFRS 14 Regulatory Deferral Accounts• Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11)• Clariication of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)• IFRS 15 Revenue from Contract with Customers• Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)• Equity Method in Separate Financial Statements (Amendments to IAS 27) • Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)• Annual Improvements to IFRSs 2012-2014 Cycle • Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)• Disclosure Initiative (Amendments to IAS 1)• IFRS 16 Leases• Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12)• Amendments to IAS 7 Statement of Cash Flows• Clariications to IFRS 15 Revenue from Contracts with Customers• Classiication and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)

Notes to the Financial

StatementsYear Ended June 30, 2016




Notes to the Financial StatementsYear Ended June 30, 2016

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(a) Basis of preparation (cont’d)

Standards, Amendments to published Standards and Interpretations issued but not yet efective (cont’d)

Where relevant, the Group is still evaluating the efect of these Standards, amendments to published Standards and Interpretations issued but not yet efective, on the presentation of its inancial statements.

The preparation of inancial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas

involving a higher degree of judgement or complexity, or areas where assumptions and estimates are signiicant to the inancial statements, are disclosed in Note 4.

(b) Property, plant and equipment

Land and buildings, held for use in the production or supply of goods or for administrative purposes, are stated at their fair

value, based on periodic, but at least trennial valuations by external independent valuers, less subsequent depreciation for

buildings. Plant and machinery is stated at deemed cost less subsequent depreciation. Any accumulated depreciation at the

date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued

amount of the asset.

All other property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that

is directly attributable to the acquisition of the items.

Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset as appropriate, only when

it is probable that future economic beneits associated with the item will low to the Group and the cost of the item can be measured reliably.

Increases in the carrying amount arising on revaluation are credited to other comprehensive income. Decreases that ofset previous increases of the same asset are charged against revaluation surplus directly in equity; all other decreases are charged

to proit and loss.

Properties in the course of construction for production, or for administrative purposes or for purposes not yet determined are

carried at cost including professional fees less any recognised impairment loss. Depreciation of these assets, on the same basis

as other property assets, commences when the assets are ready for their intended use.

Depreciation is calculated on the straight-line method to write of the cost or revalued amounts of the asset to their residual values over their estimated useful lives as follows:

Per annum

Buildings 2% - 25%Plant and machinery 2% - 7.5%Motor vehicles 20%Furniture and ittings 10%Oice equipment 25%

Land is not depreciated.

The assets’ residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate,

at the end of each reporting period.

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its

recoverable amount.


(b) Property, plant and equipment (cont’d)

Gains and losses on disposals of property, plant and equipment are determined by comparing proceeds with carrying amount

and are included in proit or loss. On disposal of revalued assets, the amounts included in revaluation surplus are transferred to retained earnings.

(c) Intangible assets

Computer software

Acquired computer software licences are capitalised on the basis of costs incurred to acquire and bring to use the speciic software and are amortised using the straight line method over their estimated useful life of 4 years.

Costs associated with developing or maintaining computer software are recognised as an expense as incurred.

The carrying amount of each intangible asset is reviewed annually and adjusted for permanent impairment where it is

considered necessary.

(d) Investment in subsidiary company

Separate inancial statements of the investor

In the separate inancial statements of the investor, investment in subsidiary company is carried at cost. The carrying amount is reduced to recognise any impairment in the value of the investment.

Consolidated inancial statements

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when

the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to afect those returns through its power over the entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from

the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred

for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests

issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent

consideration arrangement. Acquisition-related costs are expensed as incurred. Identiiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an

acquisition-by-acquisition basis, the Group recognises any non-controlling interests in the acquiree either at fair value or at the

non-controlling interests’ proportionate share of the acquiree’s net assets.

The excess of the consideration transferred, the amount of any non-controlling interests in the acquiree and the acquisition-date

fair value of any previous equity interest in the acquiree over the fair value of the identiiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase,

the diference is recognised directly in proit or loss as a bargain purchase gain.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated.

Unrealised losses are also eliminated. Accounting policies of subsidiary have been changed where necessary to ensure consistency

with the policies adopted by the Group.






(e) Financial instruments

(i) Trade and other receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the

efective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms

of receivables. The amount of the provision is the diference between the asset’s carrying amount and the present value of estimated future cash lows, discounted at the efective interest rate. The amount of provision is recognised in proit or loss.

(ii) Trade and other payables

Trade and other payables are stated at fair value and subsequently measured at amortised cost using the efective

interest method.

(iii) Cash and cash equivalents

Cash and cash equivalents include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in

current liabilities in the statements of inancial position.

(iv) Ordinary shares

Ordinary shares are classiied as equity.

(f) Deferred income tax

Deferred income tax is provided in full, using the liability method, on temporary diferences arising between the tax bases of assets and liabilities and their carrying amounts in the inancial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction

afects neither accounting nor taxable proit or loss, it is not accounted for.

Deferred income tax is determined using tax rates that have been enacted at or substantively enacted at the reporting date and

are expected to apply in the period when the related deferred income tax asset is realised or the deferred income tax liability

is settled.

Deferred tax assets are recognised to the extent that it is probable that future taxable proit will be available against which deductible temporary diferences can be utilised.

(g) Alternative Minimum Tax

Alternative Minimum Tax (AMT) is provided for, where the Company has a tax liability of less than 7.5% of its book proit pays a dividend. AMT is calculated as the lower of 10% of the dividend paid and 7.5% of book proit.

(h) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis. The cost

of inished goods comprises raw materials, direct labour, other direct costs and related production overheads but excludes borrowing costs. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of

completion and applicable variable selling expenses.


(i) Retirement beneit obligations

(i) Deined contribution plans

A deined contribution plan is a pension plan under which the Group pays ixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold suicient assets to pay all employees the beneits relating to employee service in the current and prior periods.

Payments to deined contribution plans are recognised as an expense when employees have rendered service that entitle them to the contributions.

(ii) Deined beneit plans

A deined beneit plan is a pension plan that is not a deined contribution plan. Typically deined beneit plans deine an amount of pension beneit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The liability recognised in the statements of inancial position in respect of deined beneit pension plan is the present value of the deined beneit obligation at the end of the reporting period less the fair value of plan assets. The deined beneit obligation is calculated annually by independent actuaries using the projected unit credit method.

Remeasurement of the net deined beneit liability, which comprise actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions, the return on plan assets (excluding interest) and the efect of the asset ceiling (if any, excluding interest), is recognised immediately in other comprehensive income in the period in which they occur.

Remeasurements recognised in other comprehensive income shall not be reclassiied to proit or loss in subsequent period.

The Group determines the net interest expense/(income) on the net deined beneit liability/(asset) for the period by applying the discount rate used to measure the deined beneit obligation at the beginning of the annual period to the net deined liability/(asset), taking into account any changes in the net deined liability/(asset) during the period as a result of contributions and beneit payments. Net interest expense/(income) is recognised in proit or loss.

Service costs comprising current service cost, past service cost, as well as gains and losses on curtailments and settlements

are recognised immediately in proit or loss.

(iii) Gratuity on retirement

For employees who are not covered (or who are insuiciently covered by the above pension plans), the net present value of gratuity on retirement payable under the Employment Rights Act 2008 is calculated by a qualiied actuary and provided for. The obligations arising under this item are not funded.

(j) Foreign currencies

(i) Functional and presentation currency

Items included in the inancial statements are measured using Mauritian rupees, the currency of the primary economic environment in which the entity operates (“functional currency”). The inancial statements are presented in Mauritian rupees, which is the Company’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates

of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the

translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised

in proit or loss.






(j) Foreign currencies (cont’d)

(ii) Transactions and balances (cont’d)

Foreign exchange gains and losses that relate to cash and cash equivalents are recognised in proit or loss within ‘inance income or cost’.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at

the date of the transaction.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the

date the fair value was determined.

(iii) Group company

The results and inancial position of the subsidiary that has a functional currency diferent from the presentation currency are translated into the presentation currency as follows:

(a) assets and liabilities for each statement of inancial position presented are translated at the closing rates at the date of that statement of inancial position.

(b) income and expenses for each statement representing proit or loss and other comprehensive income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative efect of the rates prevailing on the transactions dates, in which case income and expenses are translated at the dates of the transactions); and

(c) all resulting exchange diferences are recognised in other comprehensive income.

On the disposal of a foreign operation, the cumulative amount of the exchange diferences deferred in the separate components of equity relating to that foreign operation is recognised in proit or loss as part of the gain or loss on disposal.

(k) Impairment of non-inancial assets

Assets that have an indeinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying

amount may not be recoverable. Any impairment loss is recognised for the amount by which the carrying amount of the asset

exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identiiable cash lows (cash-generating units).

(l) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods

supplied, stated net of discounts, returns and value added taxes, rebates and other similar allowances and after eliminating

sales within the Group.

(i) Sale of goods

Sales of goods are recognised when goods are delivered and titles have passed, at which time all of the following conditions

are satisied:

• the Group has transferred to the buyer the signiicant risks and rewards of ownership of the goods;• the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor efective

control over the goods sold;

• the amount of revenue can be measured reliably;• it is probable that the economic beneits associated with the transaction will low to the Group; and• the costs incurred or to be incurred in respect of the transaction can be measured reliably.


(l) Revenue recognition (cont’d)

(ii) Rendering of services

Revenue from rendering of services are recognised in the accounting year in which the services are rendered (by reference

to completion of the speciic transaction assessed on the basis of the actual services provided as a proportion of total services to be provided).

(iii) Other revenues earned by the Group are recognised on the following bases:

• Interest income - on a time-proportion basis using the efective interest method. When a receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being the estimated future cash low discounted at original efective interest rate, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised either as cash is collected or on a cost-recovery basis as conditions warrant.

• Other income - on an accrual basis.

(m) Dividend distribution

Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s inancial statements in the period in which the dividends are declared.

(n) Joint venture

The interest in the jointly controlled entity is accounted for by the equity method. The investment is initially recognised at cost

and adjusted by post-acquisition changes in the Group’s share of the net assets of the joint venture less any impairment in the

value of individual investments.

When the Group’s share of losses exceeds its interest in a joint venture, the Group discontinues recognising further losses,

unless it has incurred legal or constructive obligation or made payments on behalf of the joint venture.

Unrealised proits and losses are eliminated to the extent of the Group’s interest in the joint venture. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

(o) Segment reporting

Segment information relates to operating segments that engage in business activities for which revenues are earned and

expenses incurred.

(p) Exceptional items

Exceptional items are disclosed separately in the inancial statements where it is necessary to do so to provide further understanding of the inancial performance of the Group. They are materials items of income or expenses that have been shown separately due to the signiicance of their nature or amount.





3. FINANCIAL RISK MANAGEMENT

3.1 Financial risk factors

The Group’s activities expose it to the following inancial risks:

• Currency risk;• Credit risk; and• Liquidity risk.

The Group’s overall risk management programme focuses on the unpredictability of inancial markets and seeks to minimise potential adverse efects of the Group’s inancial performance.

(a) Currency risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures,

primarily with respect to the Euro, ZAR, Singaporean dollar and the US dollar. Foreign exchange risk arises mainly from

future commercial transactions. The Group has bank accounts denominated in foreign currencies to hedge its exposure

to foreign currency risk when future commercial transactions crystallise.

At June 30, 2016, if the rupee had weakened/strengthened by 5% against US dollar, ZAR, Singaporean dollar and Euro with all other variables held constant, post-tax proit for the year would have been Rs.496,948 (2015: Rs.565,983) higher/lower, mainly as a result of foreign exchange gains/losses on transaction of US dollar, ZAR, Singaporean dollar and Euro denominated cash and cash equivalents, trade receivables and trade payables.

(b) Credit risk

Credit risk arises from inancial loss to the Group if a customer or counterparty to a inancial instrument fails to meet its contractual obligations and relates principally to the Group’s trade receivables. The amounts presented in the statements

of inancial position are net of allowances for doubtful receivables, estimated by the Group’s management based on prior experience and the current economic environment. The Group has no signiicant concentration of credit risk, with exposure spread over a large number of counterparties and customers. The Group has policies in place to ensure that sales of

products and services are made to customers with an appropriate credit history.

The table below shows the percentage balances of its major counterparties at the end of the reporting period:


2016 2015 2016 2015

6 major counterparties 59% 61% 59% 61%Others 41% 39% 41% 39%

100% 100% 100% 100%

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above.

The Group does not hold any collateral as security.

3. FINANCIAL RISK MANAGEMENT (CONT’D)

3.1 Financial risk factors (cont’d)

(c) Liquidity risk

Liquidity risk is the risk that the Group will encounter diiculty in meeting the obligations associated with its inancial liabilities that are settled by the delivery of cash or another inancial asset.

Prudent liquidity risk management implies maintaining suicient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions.

The Group aims at maintaining lexibility in funding by keeping committed credit lines available.

The table below analyses the Company’s non-derivative inancial liabilities into relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual maturity date.

THE GROUP Less than Between 1 Between 2 Over

1 year and 2 years and 5 years 5 yearsAt June 30, 2016

Bank overdraft 431,681 - - -

Bank borrowings 8,560,198 3,822,545 - -

Trade and other payables 47,423,451 - - -

At June 30, 2015Bank overdraft 2,831,578 - - -

Bank borrowings 8,937,132 5,697,799 5,697,800 -


THE COMPANY Less than Between 1 Between 2 Over

1 year and 2 years and 5 years 5 yearsAt June 30, 2016

Bank overdraft 431,681 - - -

Bank borrowings 8,560,198 3,822,545 - -


At June 30, 2015Bank overdraft 2,048,049 - - -

Bank borrowings 8,937,132 5,697,799 5,697,800 -


(d) Cash low and fair value interest rate risk

At June 30, 2016, if interest rates on rupee-denominated borrowings had been 10 basis points higher/lower with all other variables held constant, post-tax proit for the year would have been Rs.17,049 (2015: Rs.26,540) lower/higher, mainly as a result of higher/lower interest expense on loating rate borrowings.





3. FINANCIAL RISK MANAGEMENT (CONT’D)

3.2 Fair value estimation

The fair value of inancial instruments traded in active markets is based on quoted market prices at the end of the reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry

group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on

an arm’s length basis. These instruments are included in Level 1.

The fair value of instruments that are not traded in an active market is determined by using valuation techniques. These valuation

techniques maximise the use of observable market data where it is available and rely as little as possible on speciic estimates. If all signiicant inputs required for fair value an instrument are observable, the instrument is included in Level 2.

If one or more of the signiicant inputs is not based on observable market data, the instrument is included in Level 3.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values.

The fair value of inancial liabilities for disclosure purposes is estimated by discounting the future contractual cash lows at the current market interest rate that is available to the Group for similar inancial instruments.

3.3 Capital risk management

The Group’s objectives when managing capital are:

• to safeguard the Group’s ability to continue as going concern, so that it can continue to provide returns for shareholders and beneits for other stakeholders, and

• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Group sets the amounts of capital in proportion to risk. The Group manages the capital structure and makes adjustments

to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or

adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders,

issue new shares, or sell assets to reduce debt.


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Total debt 12,814,424 23,164,309 12,814,424 22,380,780Less: Cash and cash equivalents (29,805,601) (1,736,716) (28,731,691) (1,736,716)Net debt Rs. (16,991,177) 21,427,593 (15,917,267) 20,644,064

Total equity Rs. 238,634,451 235,749,418 243,009,362 238,613,688

Debt-to-capital ratio N/A 0.1:1 N/A 0.1:1

There were no changes in the Group’s approach to capital risk management during the year.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continuously evaluated and are based on historical experience and other factors, including

expectations of future events that are believed to be reasonable under the circumstances.

4.1 Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by deinition, seldom equal the related actual results. The estimates and assumptions that have a signiicant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next inancial year are discussed below.

(a) Pension beneits

The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis

using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the

discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations.

The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used

to determine the present value of estimated future cash outlows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that

are denominated in the currency in which the beneits will be paid, and that have terms to maturity approximating the terms of the related pension liability.

Other key assumptions for pension obligations are based in part on current market conditions. Additional information is

disclosed in Note 15.

(b) Revaluation of property, plant and equipment

The Group measures land and buildings at revalued amounts with changes in fair value being recognised in proit or loss. The Group engaged valuation specialists to determine fair value as at April 30, 2013.

(c) Asset lives and residual values

Property, plant and equipment are depreciated over its useful life taking into account residual values, where appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.

In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes

are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life

of the asset and projected disposal values. Consideration is also given to the extent of current proits and losses on the disposal of similar assets.

(d) Depreciation policies

Property, plant and equipment are depreciated to their residual values over their estimated useful lives. The residual value

of an asset is the estimated net amount that the Group would currently obtain from disposal of the asset, if the asset were

already of the age and in condition expected at the end of its useful life.

The Directors therefore make estimates based on historical experience and use best judgement to assess the useful lives

of assets and to forecast the expected residual values of the assets at the end of their expected useful lives.

(e) Revenue recognition

Management exercises judgement in assessing whether signiicant risks and rewards have been transferred to the customer to permit revenue to be recognised.

Revenue arising from maintenance and repair work in progress is recognised on the percentage of completion basis.





4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)

4.1 Critical accounting estimates and assumptions (cont’d)

(f) Impairment of assets

Property, plant and equipment and intangible assets are considered for impairment if there is a reason to believe that

impairment may be necessary. Factors taken into consideration in reaching such a decision include the economic viability

of the asset itself and where it is a component of a larger economic unit, the viability of that unit itself.

Future cash lows expected to be generated by the assets or cash-generating units are projected, taking into account market conditions and the expected useful lives of the assets. The present value of these cash lows, determined using an appropriate discount rate, is compared to the current net asset value and, if lower, the assets are impaired to the

present value.

5. PROPERTY, PLANT AND EQUIPMENT

(a) THE GROUP AND THE COMPANY

Freehold

land &

buildings

Plant and

machinery

Motor

vehicles

Furniture,

ittings andoice

equipment Total

Rs. Rs. Rs. Rs. Rs.

(i) COST/VALUATION

At July 1, 2015 75,078,981 212,710,928 12,021,857 35,004,476 334,816,242Additions 573,415 3,016,036 - 1,659,497 5,248,948Assets scrapped - (705,621) - (48,200) (753,821)Disposals - - (3,593,505) - (3,593,505)At June 30, 2016

Cost 21,102,396 161,230,840 8,428,352 36,615,773 227,377,361

Valuation 54,550,000 53,790,503 - - 108,340,503

75,652,396 215,021,343 8,428,352 36,615,773 335,717,864

DEPRECIATION

At July 1, 2015 5,221,220 33,637,668 10,784,242 18,860,893 68,504,023Charge for the year 2,002,256 5,183,588 723,836 3,778,690 11,688,370Assets scrapped - (349,762) - (10,103) (359,865)Disposal adjustments - - (3,593,505) - (3,593,505)At June 30, 2016 7,223,476 38,471,494 7,914,573 22,629,480 76,239,023

NET BOOK VALUES

At June 30, 2016 Rs. 68,428,920 176,549,849 513,779 13,986,293 259,478,841

5. PROPERTY, PLANT AND EQUIPMENT (CONT'D)

(a) THE GROUP AND THE COMPANY

Freehold

land &

buildings

Plant and

machinery

Motor

vehicles

Furniture,

ittings andoice

equipment Total

Rs. Rs. Rs. Rs. Rs.

(i) COST/VALUATION

At July 1, 2014 69,192,461 216,974,761 12,846,157 31,546,885 330,560,264Transfer 5,807,520 (4,757,869) 31,200 (1,080,851) -

Additions 79,000 5,480,861 - 4,721,897 10,281,758Assets scrapped - (303,965) - (154,955) (458,920)Disposals - (713,558) (855,500) (28,500) (1,597,558)Impairment losses - (3,969,302) - - (3,969,302)At June 30, 2015

Cost 20,528,981 158,920,425 12,021,857 35,004,476 226,475,739

Valuation 54,550,000 53,790,503 - - 108,340,503

75,078,981 212,710,928 12,021,857 35,004,476 334,816,242

DEPRECIATION

At July 1, 2014 2,700,655 31,714,646 10,529,344 15,036,247 59,980,892Transfer 556,786 (475,578) 5 (81,213) -

Charge for the year 1,963,779 5,267,488 1,110,393 4,039,464 12,381,124Assets scrapped - (180,407) - (119,355) (299,762)Disposal adjustments - (231,307) (855,500) (14,250) (1,101,057)Impairment losses - (2,457,174) - - (2,457,174)At June 30, 2015 5,221,220 33,637,668 10,784,242 18,860,893 68,504,023

NET BOOK VALUES

At June 30, 2015 Rs. 69,857,761 179,073,260 1,237,615 16,143,583 266,312,219

(b) The Company's plant and machinery were last revalued at June 30, 2005 by Consultec Ltd, an independent valuer. Valuations were made on the basis of open market value. The gain in revaluation net of deferred income taxes was credited to revaluation

surplus in shareholders' equity (note 12). It is no longer the Company's policy to revalue plant and machinery. The revalued amount at June 30, 2005 is considered to be the 'Deemed Cost'.

(c) The Company's freehold land and buildings were revalued on April 30, 2013 by Gexim Real Estate Ltd, an independent valuer. Valuations were made on the basis of open market value. The revaluation surplus net of deferred income taxes was credited to

revaluation surplus in shareholders' equity (note 12).





5. PROPERTY, PLANT AND EQUIPMENT (CONT'D)

(d) Details of the Group's land and buildings and plant and machinery measured at fair value and information about the fair value

hierarchy as at June 30, 2016 are as follows:Level 2

Rs.

Freehold land and buildings Rs. 68,428,920

Plant and machinery Rs. 176,549,849

(e) If freehold land and buildings were stated on the historical cost basis, the amounts would be as follows:


2016 2015 2016 2015Freehold land and buildings Rs. Rs. Rs. Rs.

Cost 49,675,572 49,102,157 49,675,572 49,102,157Accumulated depreciation (9,196,968) (8,203,456) (9,196,968) (8,203,456)Net book value Rs. 40,478,604 40,898,701 40,478,604 40,898,701

(f) If plant and machinery were stated on the historical cost basis, the amounts would be as follows:


2016 2015 2016 2015Plant and machinery Rs. Rs. Rs. Rs.

Cost 215,804,698 213,494,283 215,804,698 213,494,283Accumulated depreciation (67,576,471) (59,116,682) (67,576,471) (59,116,682)Net book value Rs. 148,228,227 154,377,601 148,228,227 154,377,601

(g) Depreciation charge for the year has been included in:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Cost of sales 8,111,696 8,360,558 8,111,696 8,360,558Selling and distribution expenses 1,562,912 1,907,492 1,562,912 1,907,492Administrative expenses 2,013,762 2,113,074 2,013,762 2,113,074

Rs. 11,688,370 12,381,124 11,688,370 12,381,124

(h) Bank borrowings are secured by ixed charge on the assets of the Group including property, plant and equipment.

(i) The Board of Directors took the decision to stop the production of electrodes in 2015. As a result, an impairment loss of Rs. 1,512,128 was recognised in 2015 for the Group and the Company, representing the net book value of electrode plants.

6. INTANGIBLE ASSETS


2016 2015 2016 2015Computer software Rs. Rs. Rs. Rs.

(a) COST

At July 1, 10,890,016 8,138,875 10,890,016 8,138,875Additions 19,626 2,751,141 19,626 2,751,141At June 30, 10,909,642 10,890,016 10,909,642 10,890,016

AMORTISATION

At July 1, 8,126,029 7,457,254 8,126,029 7,457,254Charge for the year 883,769 668,775 883,769 668,775At June 30, 9,009,798 8,126,029 9,009,798 8,126,029

NET BOOK VALUES Rs. 1,899,844 2,763,987 1,899,844 2,763,987

(b) Amortisation charge of Rs.853,956 (2015: Rs.668,775) has been included in administrative expenses and Rs.29,813 (2015: Nil) in selling and distribution expenses.

7. INVESTMENT IN SUBSIDIARY COMPANY - COST

2016 2015Rs. Rs.

THE COMPANY

At June 30, Rs. 1,513,931 1,513,931

(a) Details of the subsidiary company are as follows:

Proportion of direct Country of

Class of Stated ownership interest incorporation Main

Name of company shares held Year end Capital 2016 2015 and operation business

Rs.

Production

Gaz Industriels and sale

Madagascar SA Ordinary June 30, 1,514,955 99.9% 99.9% Madagascar of gases

8. INVENTORIES


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Finished goods 9,970,135 11,540,975 8,370,662 10,078,100Raw materials 1,751,199 739,848 1,751,199 739,848Spare parts 1,996,965 1,754,916 1,996,965 1,754,916

Rs. 13,718,299 14,035,739 12,118,826 12,572,864

(a) The cost of inventories recognised as expense and included in cost of sales amounted to Rs.24,608,579 (2015: Rs.22,941,654) and Rs.23,142,789 (2015: Rs.22,784,036) for the Group and for the Company respectively.





9. TRADE AND OTHER RECEIVABLES


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Trade receivables 29,056,364 30,080,609 28,242,542 29,882,726Provision for bad debts (18,460,111) (18,336,221) (18,460,111) (18,336,221)Trade receivables net of provision 10,596,253 11,744,388 9,782,431 11,546,505Receivable from joint venture (note 29) 8,127,028 17,642,468 8,127,028 17,642,468Receivable from subsidiary (note 29) - - 6,536,088 2,741,938Prepayments 4,755,507 4,832,424 4,722,471 4,799,681Other receivables 3,421,515 4,294,268 2,612,807 3,393,877

Rs. 26,900,303 38,513,548 31,780,825 40,124,469

The carrying amounts of trade and other receivables approximate their fair values.

As of June 30, 2016, trade receivables of Rs.18,460,111 (2015: Rs.18,336,221) were impaired for the Group and the Company. The amounts of the provision for the Group and the Company were Rs.18,460,111 as of June 30, 2016 (2015: Rs.18,336,221). The individually impaired receivables relate mainly to rental charges of cylinders for which customers are not agreeable.

The ageing of these receivables is as follows: THE GROUP THE COMPANY

2016 2015 2016 2015Rs. Rs. Rs. Rs.

Over 3 months Rs. 18,460,111 18,336,221 18,460,111 18,336,221

As of June 30, 2016, trade receivables of Rs.4,651,874 (2015: Rs.9,713,895) for the Group and the Company were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The ageing

analysis of these trade receivables is as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

1 to 3 months 3,633,966 7,792,838 3,633,966 7,792,838Over 3 months 1,017,908 1,921,057 1,017,908 1,921,057

Rs. 4,651,874 9,713,895 4,651,874 9,713,895

The carrying amounts of the trade and other receivables of the Group and the Company are denominated in the following

currencies.


2016 2015 2016 2015Rs. Rs. Rs. Rs.

USD 1,943,216 3,313,471 5,162,366 3,313,471Malagasy Ariary 1,655,566 1,106,011 - -

Mauritian Rupee 23,301,521 34,094,066 26,618,459 36,810,998Rs. 26,900,303 38,513,548 31,780,825 40,124,469

9. TRADE AND OTHER RECEIVABLES (CONT'D)

Movements on the provision for impairment of trade receivables are as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

At July 1, 18,336,221 9,794,574 18,336,221 9,794,574Provision for receivable impairment 9,105,329 9,881,276 9,105,329 9,881,276Receivables written of during the year as uncollectible (8,981,439) (1,339,629) (8,981,439) (1,339,629)At June 30, Rs. 18,460,111 18,336,221 18,460,111 18,336,221

The other classes within trade and other receivables do not contain impaired assets (2015: Nil).

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above.

The Group does not hold any collateral as security.

10. TAXATION


2016 2015 2016 2015(a) Charged to proit or loss: Rs. Rs. Rs. Rs.

Deferred tax (note 14(b)) 3,434,350 3,151,382 3,434,350 3,151,382Excess amount recognised as receivables previously - 58,075 - 58,075Charge for the year Rs. 3,434,350 3,209,457 3,434,350 3,209,457

(b) Tax reconciliation

The tax on the Group's and Company's proit/(loss) before taxation difers from the theoretical amount that would arise using the basic tax rate of the Company as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Proit/(loss) before taxation 14,014,859 5,264,551 16,034,553 (963,595)

Tax calculated at the rate of 15% (2015: 15%) 2,102,229 789,682 2,405,183 (144,539)Income not subject to tax (5,903,857) (8,958,800) (5,903,857) (8,958,800)Expenses not deductible for tax purposes 3,643,573 8,169,118 3,340,619 9,103,339Excess amount recognised as receivables previously - 58,075 - 58,075Other tax movement 158,055 - 158,055 -

Deferred tax 3,434,350 3,151,382 3,434,350 3,151,382Rs. 3,434,350 3,209,457 3,434,350 3,209,457





11. STATED CAPITAL

THE GROUP AND THE COMPANY

Number of Ordinary Share

shares shares premium Total

2016 & 2015 2016 & 2015 2016 & 2015 2016 & 2015

Rs. Rs. Rs.

At July 1, 2015 and June 30, 2016 2,611,392 26,113,920 159 26,114,079

The total authorised number of ordinary share is 6,000,000 (2015: 6,000,000 shares) with a par value of Rs.10 per share

(2015: Rs.10 per share). All issued shares are fully paid. The Company has one class of ordinary share and each share carries a right to vote and to dividend.

12. REVALUATION AND OTHER RESERVES

Actuarial

Translation Revaluation gains/(losses)reserve surplus reserve Total

(a) THE GROUP Rs. Rs. Rs. Rs.

At July 1, 2015 2,219,972 55,813,691 (4,762,538) 53,271,125Remeasurement of deined beneit obligations - - (435,710) (435,710)Deferred tax relating to components of other

comprehensive income - - 65,357 65,357Currency translation diferences 509,053 - - 509,053At June 30, 2016 Rs. 2,729,025 55,813,691 (5,132,891) 53,409,825

At July 1, 2014 467,137 55,813,691 (2,738,726) 53,542,102Remeasurement of deined beneit obligations - - (2,380,955) (2,380,955)Deferred tax relating to components of other

comprehensive income - - 357,143 357,143Currency translation diferences 1,752,835 - - 1,752,835At June 30, 2015 Rs. 2,219,972 55,813,691 (4,762,538) 53,271,125

(b) THE COMPANY Actuarial

Revaluation gains/(losses)surplus reserve Total

Rs. Rs. Rs.

At July 1, 2015 55,813,691 (4,762,538) 51,051,153Remeasurement of deined beneit obligations - (435,710) (435,710)Income tax relating to components of other

comprehensive income - 65,357 65,357At June 30, 2016 Rs. 55,813,691 (5,132,891) 50,680,800

At July 1, 2014 55,813,691 (2,738,726) 53,074,965Remeasurement of deined beneit obligations - (2,380,955) (2,380,955)Income tax relating to components of other

comprehensive income - 357,143 357,143At June 30, 2015 Rs. 55,813,691 (4,762,538) 51,051,153

12. REVALUATION AND OTHER RESERVES (CONT'D)

Translation reserve

The translation reserve comprises all foreign currency diferences arising from the translation of the inancial statements of the foreign subsidiary.

Revaluation surplus

The revaluation surplus relates to the revaluation of property, plant and equipment.

Actuarial gains/(losses) reserve

The actuarial gains/(losses) reserve represents the cumulative remeasurement of deined beneit obligation recognised.

13. BORROWINGS


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Non-current

Bank borrowings 3,822,545 11,395,599 3,822,545 11,395,599Current

Bank overdrafts 431,681 2,831,578 431,681 2,048,049Bank borrowings 8,560,198 8,937,132 8,560,198 8,937,132

8,991,879 11,768,710 8,991,879 10,985,181Total borrowings Rs. 12,814,424 23,164,309 12,814,424 22,380,780

(a) The bank borrowings are secured by ixed charge on the assets of the Group including property, plant and equipment (note 5). The rate of interest on these loan is 7.15%.

(b) The exposure of the Group's borrowings to interest-rate changes and the contractual repricing dates are as follows:

6 months 6-12 1-5 Over

or less months years 5 years Total

Rs. Rs. Rs. Rs. Rs.

(i) THE GROUP

At June 30, 2016 Rs. 4,635,508 4,356,371 3,822,545 - 12,814,424

At June 30, 2015 Rs. 7,217,739 4,550,971 11,395,599 - 23,164,309(ii) THE COMPANY

At June 30, 2016 Rs. 4,635,508 4,356,371 3,822,545 - 12,814,424

At June 30, 2015 Rs. 6,434,210 4,550,971 11,395,599 - 22,380,780

(c) The maturity of non-current borrowings is as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

After one year and before two years 3,822,545 8,937,133 3,822,545 8,937,133After two years and before ive years - 2,458,466 - 2,458,466

Rs. 3,822,545 11,395,599 3,822,545 11,395,599

The carrying amounts of borrowings are not materially diferent from their fair values.





14. DEFERRED INCOME TAXES

(a) Deferred income taxes are calculated on all temporary diferences under the liability method at 15% (2015: 15%).

There is a legally enforceable right to ofset current tax assets against current tax liabilities and deferred income tax assets and liabilities when the deferred income taxes relate to the same iscal authority on the same entity.

The following amounts are shown in the statements of inancial position:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Deferred tax liabilities 27,973,898 29,162,387 27,973,898 29,162,387Deferred tax assets (2,272,025) (6,829,507) (2,272,025) (6,829,507)Net deferred tax liabilities Rs. 25,701,873 22,332,880 25,701,873 22,332,880

At the end of the reporting date, the Company had unused tax losses of Rs.11,835,224 (2015: Rs.42,865,047) available for ofset against future proits. Deferred tax asset has been recognised in respect of tax losses.

(b) The movement on the deferred income tax account is as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

At July 1, 22,332,880 19,538,641 22,332,880 19,538,641Charged to proit or loss (note 10(a)) 3,434,350 3,151,382 3,434,350 3,151,382Credited to other comprehensive income (65,357) (357,143) (65,357) (357,143)At June 30, Rs. 25,701,873 22,332,880 25,701,873 22,332,880

(c) The movement in deferred tax assets and liabilities during the year, without taking into consideration the ofsetting of balances within the same iscal authority on the same entity, is as follows:

Deferred tax liabilities THE GROUP AND THE COMPANY

Accelerated

(i) tax Revaluation

depreciation of assets Total

Rs. Rs. Rs.

At July 1, 2014 16,804,329 5,514,324 22,318,653Charged to proit or loss 6,843,734 - 6,843,734At June 30, 2015 23,648,063 5,514,324 29,162,387

Credited to proit or loss (1,188,489) - (1,188,489)At June 30, 2016 Rs. 22,459,574 5,514,324 27,973,898

14. DEFERRED INCOME TAXES (CONT'D)

(ii) Deferred tax assets Retirement

beneitobligations Tax losses Total

Rs. Rs. Rs.

At July 1, 2014 (38,867) (2,741,145) (2,780,012)Credited to proit or loss (3,740) (3,688,612) (3,692,352)Credited to other comprehensive income (357,143) - (357,143)At June 30, 2015 (399,750) (6,429,757) (6,829,507)

(Credited)/charged to proit or loss (31,634) 4,654,473 4,622,839Credited to other comprehensive income (65,357) - (65,357)At June 30, 2016 Rs. (496,741) (1,775,284) (2,272,025)

15. RETIREMENT BENEFIT OBLIGATIONS


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Amounts recognised in the statements of inancial position:- Pension beneits Rs. 3,311,601 2,664,999 3,311,601 2,664,999

Amounts charged to proit or loss:- Pension beneits Rs. 210,892 24,934 210,892 24,934

Amounts charged to other comprehensive income:

- Pension beneits Rs. (435,710) (2,380,955) (435,710) (2,380,955)

Pension beneits

(i) The Group operates a deined beneit pension plan. The plan is a inal salary plan, which provides beneits to members in the form of a guaranteed level of pension payable for 5 years. The level of beneits provided depends on members' length of service and their salary in the inal years leading up to retirement.

The assets of the fund are invested in the Deposit Administration Policy underwritten by Anglo-Mauritius.

The most recent actuarial valuation of the plan assets and the present value of the deined beneit obligations were carried out at June 30, 2016 by Anglo Mauritius Assurance Society Limited (Actuarial Valuer). The present value of the deined beneit obligations and the related current service cost and past service cost were measured using the Unit Credit Method.

(ii) The amounts recognised in the statements of inancial position are as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Present value of funded obligations 16,615,425 15,269,734 16,615,425 15,269,734 Fair value of plan assets (13,303,824) (12,604,735) (13,303,824) (12,604,735)Liability in the statements of inancial position Rs. 3,311,601 2,664,999 3,311,601 2,664,999





15. RETIREMENT BENEFIT OBLIGATIONS (CONT'D)

The reconciliation of the opening balances to the closing balances for the net deined beneit liability is as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

At July 1, (2,664,999) (259,110) (2,664,999) (259,110)Charged to proit or loss (210,892) (24,934) (210,892) (24,934)Charged to other comprehensive income (435,710) (2,380,955) (435,710) (2,380,955)At June 30, Rs. (3,311,601) (2,664,999) (3,311,601) (2,664,999)

(iii) The movement in the net deined beneit obligations over the year is as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

At July 1, 15,269,734 11,949,671 15,269,734 11,949,671Interest cost 994,832 896,226 994,832 896,226Current service cost 35,368 - 35,368 -

Actuarial losses 315,491 2,423,837 315,491 2,423,837At June 30, Rs. 16,615,425 15,269,734 16,615,425 15,269,734

(iv) The movement in the fair value of plan assets of the year is as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

At July 1, 12,604,735 11,690,561 12,604,735 11,690,561Expected return on plan assets 819,308 876,792 819,308 876,792Actuarial (losses)/gains (120,219) 42,882 (120,219) 42,882Scheme Expenses - (5,500) - (5,500)At June 30, Rs. 13,303,824 12,604,735 13,303,824 12,604,735

(v) The amounts recognised in proit or loss are as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Current service cost 35,368 - 35,368 -

Net interest cost 175,524 24,934 175,524 24,934Total included in employee beneit expense(Note 23(a)) Rs. 210,892 24,934 210,892 24,934

Actual return on plan assets Rs. 699,089 919,674 699,089 919,674

15. RETIREMENT BENEFIT OBLIGATIONS (CONT'D)

(vi) The amounts recognised in other comprehensive income are as follows:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Experience losses on the liabilities (315,491) (2,423,837) (315,491) (2,423,837)(Losses)/gains on pension scheme assets (120,219) 42,882 (120,219) 42,882Total in other comprehensive income Rs. (435,710) (2,380,955) (435,710) (2,380,955)

(vii) The principal actuarial assumptions used for the purposes of the actuarial valuations were:


2016 2015 2016 2015Discount rate 6.50% 6.50% 6.50% 6.50%Future long-term salary increase 5.50% 5.50% 5.50% 5.50%

(viii) Sensitivity analysis on deined beneit obligations at end of the reporting date:

THE GROUP AND

THE COMPANY

Increase Decrease

Rs. Rs.

Discount rate (1% movement) Rs. - 1,099,174

Future long-term salary increase (1% movement) Rs. 354,327 -

The sensitivity above has been determined based on a method that extrapolates the impact on net deined beneit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The present value of the

deined beneit obligation has been calculated using the projected unit credit method.

The sensitivity analysis may not be representative of the actual change in the deined beneit obligation as it is unlikely that the change in assumptions would incur in isolation of one another as some of the key assumptions may be correlated.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

(ix) The deined beneit pension plan exposes the Group to actuarial risks such as longevity risk, currency risk, interest rate risk and market (investment) risk.

(x) The funding requirements are based on the pension fund's actuarial measurement framework set out in the funding policies of

the plan.

(xi) Expected contributions to post-employment beneit plans for the year ending June 30, 2017 are Rs.Nil for the Group and the Company.

(xii) The weighted average duration of the deined beneit obligation is 9 years for the Group and the Company.





16. TRADE AND OTHER PAYABLES


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Trade payables 6,801,221 3,651,848 6,945,458 3,233,083Amount due to related parties (note 29) 4,849,671 4,290,376 4,849,671 4,290,376Deposits from customers 23,849,411 19,001,208 23,849,411 19,001,208Accrued expenses 6,235,744 6,479,679 6,235,744 6,479,679Other payables 5,687,404 6,027,492 4,889,326 6,027,493

Rs. 47,423,451 39,450,603 46,769,610 39,031,839

The carrying amounts of trade and other payables approximate their fair values.

17. REVENUE


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Sales of goods 113,839,489 110,763,386 112,134,373 109,401,785Sales of services 7,309,507 4,307,123 7,309,507 4,307,123

Rs. 121,148,996 115,070,509 119,443,880 113,708,908

18. EXPENSES BY NATURE


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Depreciation of property, plant and equipment 11,688,370 12,381,124 11,688,370 12,381,124Amortisation of intangible assets 883,769 668,775 883,769 668,775Loss on assets scrapped 350,456 159,158 350,456 159,158Employee beneit expense (note 23(a)) 30,888,545 27,799,730 30,076,740 27,034,541Rental of cylinders 23,978 9,822 23,978 9,822Professional fees 5,697,208 6,528,422 5,646,358 6,480,222Repairs & maintenance 3,619,974 3,984,800 3,619,974 3,984,800Electricity 3,820,856 4,901,151 3,820,856 4,901,151Provision for stock obsolescence 1,484,501 1,401,578 1,484,501 1,401,578Raw materials and consumables used 24,608,579 22,941,654 23,142,789 22,784,036Motor vehicle running expenses 2,919,746 2,880,747 2,919,746 2,880,747Provision for bad debts 9,105,329 9,881,276 9,105,329 9,881,276Advertising costs 575,979 1,235,132 575,979 1,235,132Other expenses 8,764,084 10,575,945 8,776,604 10,448,800

Rs. 104,431,374 105,349,314 102,115,449 104,251,162

Other expenses comprise miscellaneous expenses incurred during the year.

19. OTHER INCOME


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Proit on disposal of property, plant and equipment 1,000,000 1,507,203 1,000,000 1,507,203Management fees - - 600,000 1,080,000Interest income 123,050 54,870 123,050 54,870Others 73,276 - - -

Rs. 1,196,326 1,562,073 1,723,050 2,642,073

20. FINANCE COSTS


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Interest expense 1,280,560 1,974,093 1,218,975 1,963,988Net foreign transactions losses/(gains) 2,615,995 2,493,596 1,795,419 (451,602)

Rs. 3,896,555 4,467,689 3,014,394 1,512,386

21. INTEREST IN JOINT VENTURE


2016 2015 2016 2015Rs. Rs. Rs. Rs.

At July 1, (2,457) 36,443 (2,457) 36,443Share of loss (2,534) (38,900) (2,534) (38,900)At June 30, Rs. (4,991) (2,457) (4,991) (2,457)

(a) The Group has an interest in a joint venture, Medical Gases JV. The joint venture is incorporated and operates in Maurtius. The main activity of the joint venture is to supply medical gases to the Ministry of Health and Quality of Life during the period

from January 17, 2016 to December 31, 2016.

According to the joint venture agreement, revenue for the goods provided is being split and attributed to each party according

to the goods supplied by them to Medical Gases JV. Assets and liabilities are split in the proportion of sales revenue whilst all expenses are being shared equally.

Medical Gases JV is a private company and there is no quoted market price for its shares.

The above joint venture is accounted for using the equity method.

(b) Summarised inancial informationSummarised inancial information in respect of the Group's joint venture is set out below. The summarised inancial information below represents amounts shown in the joint venture's inancial statements.

(i) Summarised statement of inancial position of Medical Gases JV:THE GROUP THE COMPANY

2016 2015 2016 2015Rs. Rs. Rs. Rs.

Current assets Rs. 16,938,022 30,157,629 16,938,022 30,157,629 Current liabilities Rs. 16,934,988 30,123,590 16,934,988 30,123,590 The above amounts of assets and liabilities include

the following:

Cash and cash equivalents Rs. 321,327 946,884 321,327 946,884





21. INTEREST IN JOINT VENTURE (CONT'D)

(b) Summarised inancial information (cont'd)

(ii) Summarised statement of proit or loss of Medical Gases JV:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Revenue Rs. 94,844,408 90,813,502 94,844,408 90,813,502

Loss for the year Rs. (31,005) (67,784) (31,005) (67,784)

The Group does not have any commitments and contingent liabilities relating to its joint venture.

22. EXCEPTIONAL ITEMS


2016 2015 2016 2015 Rs. Rs. Rs. Rs.

Impairment losses on property, plant and equipment (note 5(i)) - (1,512,128) - (1,512,128)Amounts receivable from subsidiary company written of - - - (10,000,000)

Rs. - (1,512,128) - (11,512,128)

23. PROFIT/(LOSS) BEFORE TAXATION


2016 2015 2016 2015 Rs. Rs. Rs. Rs.

Proit/(loss) before taxation is arrived at after: crediting:

Proit on disposal of property, plant and equipment 1,000,000 1,507,203 1,000,000 1,507,203

and charging:

Depreciation on property, plant and equipment 11,688,370 12,381,124 11,688,370 12,381,124Amortisation of intangible assets 883,769 668,775 883,769 668,775Loss on assets scrapped 350,456 159,158 350,456 159,158Impairment losses on property, plant and equipment - 1,512,128 - 1,512,128Cost of inventories recognised as expense 24,608,579 22,941,654 23,142,789 22,784,036Employee beneit expense (note (a) below) Rs. 30,888,545 27,799,730 30,076,740 27,034,541

(a) Employee beneit expense 2016 2015 2016 2015Rs. Rs. Rs. Rs.

Wages and salaries 28,474,529 24,216,940 27,697,873 23,482,443Social security costs 1,165,803 1,175,212 1,130,654 1,144,520Severance allowance 46,396 981,204 46,396 981,204Pension costs - deined contributions plans 990,925 1,401,440 990,925 1,401,440Pension costs - deined beneit plans (note 15(v)) 210,892 24,934 210,892 24,934

Rs. 30,888,545 27,799,730 30,076,740 27,034,541

24. EARNINGS PER SHARE

THE GROUP

2016 2015Proit attributable to ordinary shareholders Rs. 10,580,509 2,055,094

Number of ordinary shares in issue 2,611,392 2,611,392

Earnings per share Rs. 4.05 0.79

25. DIVIDENDS


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Amounts recognised as distributions to

equityholders in the year:

Unpaid at June 30, 2016Final dividend for the year ended June 30, 2016of Rs.1.50 per share (2015: Nil) 3,917,088 - 3,917,088 -

Paid and distributed during the year

Interim dividend for the year ended June 30, 2016of Rs.1.50 per share (2015: Nil) 3,917,088 - 3,917,088 -

Rs. 7,834,176 - 7,834,176 -

26. NOTES TO THE STATEMENTS OF CASH FLOWS


2016 2015 2016 2015(a) Cash generated from operations Rs. Rs. Rs. Rs.

Proit/(loss) before taxation 14,014,859 5,264,551 16,034,553 (963,595)Adjustments for:

Depreciation of property, plant and equipment 11,688,370 12,381,124 11,688,370 12,381,124 Amortisation of intangible assets 883,769 668,775 883,769 668,775 Loss on assets scrapped 350,456 159,158 350,456 159,158 Interest income (123,050) (54,870) (123,050) (54,870)Interest expense 1,280,560 1,974,093 1,218,975 1,963,988 Proit on disposal of property, plant and equipment (1,000,000) (1,507,203) (1,000,000) (1,507,203)Impairment losses on disposal of property,

plant and equipment - 1,512,128 - 1,512,128 Retirement beneit obligations 210,892 24,934 210,892 24,934

27,305,856 20,422,690 29,263,965 14,184,439 Changes in working capital:

Inventories 317,440 (1,275,738) 454,038 (1,179,674)Trade and other receivables 11,613,245 (709,630) 8,343,644 7,025,867 Trade and other payables 7,972,848 (4,109,752) 7,737,771 (4,136,091)Cash generated from operations Rs. 47,209,389 14,327,570 45,779,418 15,894,541

(b) Cash and cash equivalents THE GROUP THE COMPANY

2016 2015 2016 2015Rs. Rs. Rs. Rs.

Cash in hand and at bank 29,805,601 1,736,716 28,731,691 1,736,716Bank overdrafts (431,681) (2,831,578) (431,681) (2,048,049)Cash and cash equivalents Rs. 29,373,920 (1,094,862) 28,300,010 (311,333)





27. SEGMENT INFORMATION

(a) The Group is engaged in the manufacture and distribution of medical and industrial gases (in bulk and in cylinders). The Company

also provides welding and cutting equipment and accessories as well as gas reticulation. The Board of Directors considers the

business as a single reportable segment.

The internal reporting provided to the Chief Executive Oicer for the Company's assets, liabilities and performance is prepared on a consistent basis with the measurement and recognition principles under IFRS.

There were no changes in the reportable segment during the year.

(b) Geographical information Revenues from

external customers Non-current assets

2016 2015 2016 2015Rs. Rs. Rs. Rs.

Local 117,753,302 110,777,981 261,378,685 269,076,206 Foreign 3,395,694 4,292,528 - -

Rs. 121,148,996 115,070,509 261,378,685 269,076,206

The Group's customer database is highly diversiied, with no individual signiicant customer.

28. COMMITMENTS

Capital expenditure contracted for at the end of the reporting date but not recognised in the inancial statements:


2016 2015 2016 2015Rs. Rs. Rs. Rs.

Property, plant and equipment Rs. 1,613,799 1,810,372 1,613,799 1,810,372

29. RELATED PARTY TRANSACTIONS (CONT’D)

Sales of

Amount

owed

Amount

owed

Technical Management goods and Purchase Dividends Dividends by related to related

(b) THE COMPANY fees fees services of goods paid payable parties parties

(i) Trading transactions Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Year ended June 30, 2016

Major shareholder 918,532 - - 3,641,514 1,497,025 1,497,025 - 4,849,671

Subsidiary - 600,000 1,003,873 - - - 6,536,088 -

Joint Venture - - 61,502,244 - - - 8,127,028 -

Rs. 918,532 600,000 62,506,117 3,641,514 1,497,025 1,497,025 14,663,116 4,849,671

(ii) Trading transactions

Year ended June 30, 2015Major shareholder 1,094,231 - - 5,569,339 - - - 4,290,376Subsidiary - 1,080,000 9,000 - - - 2,741,938 -

Joint Venture - - 45,995,302 - - - 17,642,468 -

Rs. 1,094,231 1,080,000 46,004,302 5,569,339 - - 20,384,406 4,290,376

(c) (i) The above transactions have been made at arm's length, on normal commercial terms and in the normal course of business.

(ii) The major shareholder is African Oxygen Limited.

(iii) Technical fees payable are in accordance with the substance of the relevant agreements.

(iv) Amounts receivable from subsidiary company of Rs 10,000,000 has been written of during the year ended June 30, 2015.

(d) Key management personnel compensation THE GROUP THE COMPANY

2016 2015 2016 2015Rs. Rs. Rs. Rs.

Short-term employee beneits 9,597,352 7,986,036 9,597,352 7,986,036 Post-employment beneits 534,378 407,606 534,378 407,606

Rs. 10,131,730 8,393,642 10,131,730 8,393,642

30. EVENTS AFTER THE REPORTING PERIOD

On September 21, 2016, the Board of Directors approved a inal dividend of Rs.1.20 per share.

29. RELATED PARTY TRANSACTIONS

Sales of

Amount

owed

Amount

owed

Technical Management goods and Purchase Dividends Dividends by related to related

(a) THE GROUP fees fees services of goods paid payable parties parties

Trading transactions Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Year ended June 30, 2016

Major shareholder 918,532 - - 3,641,514 1,497,025 1,497,025 - 4,849,671

Joint Venture - - 61,502,244 - - - 8,127,028 -

Rs. 918,532 - 61,502,244 3,641,514 1,497,025 1,497,025 8,127,028 4,849,671

Trading transactions

Year ended June 30, 2015Major shareholder 1,094,231 - - 5,569,339 - - - 4,290,376Joint Venture - - 45,995,302 - - - 17,642,468 -

Rs. 1,094,231 - 45,995,302 5,569,339 - - 17,642,468 4,290,376

Les Gaz Industriels Limited and its Subsidiary Annual Report 201672

Notes

2016

Pailles Road | G.R.N.W P.O.Box 673 | Bell Village

Republic of Mauritius Phone: +230 212 8306 | Fax: +230 212 0235

Email: [email protected]: www.gaz-industriels.com

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