omnicane financial statements 2011

8/11/2019 Omnicane Financial Statements 2011

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Statements of

Comprehensive Incomeyear ended December 31, 2011

THE GROUP THE COMPANY

Notes 2011 2010 2011 2010

Rs000 Rs000 Rs000 Rs000

Turnover 5 3,912,953 3,471,501 325,983 275,749Gain/(loss) in fair value of consumable biological

assets 23 10,401 (3,241) 8,452 (3,320)

Other operating income 6 19,504 19,963 1,182 1,273

3,942,858 3,488,223 335,617 273,702

Operating expenses 7 (3,069,284) (2,873,072) (309,877) (322,795)

Operating profit/(loss) 7 873,574 615,151 25,740 (49,093)

Investment income 8 41,027 55,255 256,720 220,565

Amortisation of VRS costs 20 (19,998) (9,663) (17,506) (8,744)Finance costs 9 (585,579) (580,887) (138,471) (180,547)Share of results of associates 17 (3,358) (3,906) - -

Profit/(loss) before exceptional items 305,666 75,950 126,483 (17,819)

Exceptional items 10 271,519 372,918 271,519 372,918

Profit before taxation 577,185 448,868 398,002 355,099Taxation 11(a) (88,394) (132,779) (13,136) (7,737)

P fit f th 488 791 316 089 384 866 347 362


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P fit f th 488 791 316 089 384 866 347 362

OmnicaneAnnualReport 2011 OmnicaneAnnualReport 201186 87

Statements of

Changes in Equityyear ended December 31, 2011

THE GROUP

Attributable to owners of the parent

Modernisation Fair and agricultural Non-

Share Share Revaluation value Hedging diversification Retained Controlling Total

Note capital premium reserve reserve reserve reserve earnings Total interests equity

Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000

Balance at January 1, 2011 502,593 292,450 3,686,161 150,547 (29,300) 187,455 780,674 5,570,580 693,134 6,263,714

Total comprehensive incomefor the year - - 421,498 (6,924) 26,580 - 392,940 834,094 102,497 936,591

Transfer - - (50,803) - - (8,959) 59,762 - - -

Dividends 33 - - - - - - (184,284) (184,284) (100,000) (284,284)

Deconsolidation of subsidiary - - - - - - 4,212 4,212 - 4,212

Balance at

December 31, 2011 502,593 292,450 4,056,856 143,623 (2,720) 178,496 1,053,304 6,224,602 695,631 6,920,233

Balance at January 1, 2010 502,593 292,450 4,140,392 33,111 - 192,673 661,097 5,822,316 713,165 6,535,481Total comprehensive income

for the year - - (421,498) 117,436 (29,300) - 248,916 (84,446) 59,848 (24,598)

Transfer - - (32,733) - - (5,218) 37,951 - - -

Dividends 33 - - - - - - (167,531) (167,531) (80,000) (247,531)

Consolidation adjustments - - - - - - 241 241 121 362

Balance at December 31, 2010 502,593 292,450 3,686,161 150,547 (29,300) 187,455 780,674 5,570,580 693,134 6,263,714

THE COMPANY

Modernisation

and agricultural Share Share Revaluation Fair value diversific ation Retained Note capital premium reserve reserve reserve earnings Total

Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000

Balance at January 1, 2011 502,593 292,450 3,210,339 27,813 187,455 727,131 4,947,781

Total comprehensive income for the year - - 337,455 2,937 - 384,866 725,258Transfer - - (50,803) - (8,959) 59,762 -

Dividends 33 - - - - - (184,284) (184,284)

Balance at December 31, 2011 502,593 292,450 3,496,991 30,750 178,496 987,475 5,488,755

Balance at January 1, 2010 502,593 292,450 3,580,527 16,544 192,673 509,349 5,094,136

Total comprehensive income for the year - - (337,455) 11,269 - 347,362 21,176

Transfer - - (32,733) - (5,218) 37,951 -Dividends 33 - - - - - (167,531) (167,531)

Balance at December 31, 2010 502,593 292,450 3,210,339 27,813 187,455 727,131 4,947,781

The notes on pages 90 to 131 form an integral part of these financial statements.

Auditors report on page 81.

Statements of

Financial PositionDecember 31, 2011

THE GROUP THE COMPANY Notes 2011 2010 2011 2010 Rs000 Rs000 Rs000 Rs000

ASSETS EMPLOYEDNon-current assetsProperty, plant and equipment 13 10,445,566 10,625,167 3,798,732 3,865,900Investment properties 14 - 9,643 - 9,643

Intangible assets 15 1,608,189 1,161,708 220,382 220,434Investment in subsidiary companies 16 - - 1,364,201 1,364,831Investment in associated companies 17 23,413 26,771 10,688 10,688

Investment in financial assets 18 171,744 178,656 57,361 54,424Bearer biological assets 19 176,289 175,182 135,735 134,315Deferred expenditure 20 81,950 89,118 69,763 74,457

12,507,151 12,266,245 5,656,862 5,734,692

Current assetsInventories 22 442,818 449,539 13,081 12,277Consumable biological assets 23 123,711 113,310 97,877 89,425

Receivable from related parties 24 68,664 40,897 1,668,739 1,220,213Trade and other receivables 25 1,485,063 1,183,841 551,081 232,635

Current tax assets 11(b) - 153 - 153Cash in hand and at bank 585,389 710,457 21,253 11,761

2,705,645 2,498,197 2,352,031 1,566,464

Non-current assets classified as held for sale 34(b) 85,521 - - -

Total assets 15,298,317 14,764,442 8,008,893 7,301,156

EQUITY AND LIABILITIES

Capital and reservesShare capital 26 502,593 502,593 502,593 502,593Share premium 292,450 292,450 292,450 292,450

Revaluation and other reserves 27 4,376,255 3,994,863 3,706,237 3,425,607Retained earnings 1,053,304 780,674 987,475 727,131

Ownersinterests 6,224,602 5,570,580 5,488,755 4,947,781Non-controlling interests 695,631 693,134 - -

Total equity 6,920,233 6,263,714 5,488,755 4,947,781

Non-current liabilitiesBorrowings 28 4,519,263 5,091,945 440,473 538,142Deferred tax liabilities 21 99,675 461,552 15,761 346,314

Retirement benefit obligations 29 87,519 88,988 28,551 21,569

4,706,457 5,642,485 484,785 906,025Current liabilitiesPayable to related parties 30 80,595 47,152 51,570 31,408

Trade and other payables 31 579,919 670,025 95,666 75,544Current tax liabilities 11 27,503 19,757 6,081 -

Borrowings 28 2,203,640 1,681,741 1,685,309 1,127,881Provisions for VRS and Blue print costs 32 595,686 272,037 12,443 44,986Proposed dividend 33 184,284 167,531 184,284 167,531

3,671,627 2,858,243 2,035,353 1,447,350

Total equity and liabilities 15,298,317 14,764,442 8,008,893 7,301,156

The financial statements have been approved for issue by the Board of Directors on 29 March 2012.

Kishore Sunil Banymandhub Jacques M. dUnienvilleChairperson Chief Executive Offi cer

The notes on pages 90 to 131 form an integralpart of these financial statements.

Auditors report on page 81.


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Notes to the

Statements of Cash Flowsyear ended December 31, 2011

Statements of Cash Flowsyear ended December 31, 2011

THE GROUP THE COMPANY 2011 2010 2011 2010 Rs000 Rs000 Rs000 Rs000

(a) Operating profit before working capitalchanges as follows:Profit before tax 577,185 448,868 398,002 355,099

Adjustments for:Depreciation of property, plant and equipment 379,723 399,073 16,913 17,777

Amortisation of intangible assets 21,844 21,362 52 52Retirement benefit obligations 11,681 2,996 6,982 8,404Dividend income (6,950) (5,419) (153,816) (121,305)

Interest income (34,077) (49,836) (102,904) (99,260)Interest expense 597,820 651,433 144,651 180,360Share of results of associates 3,358 3,906 - -

Profit on disposal of land (299,418) (372,918) (299,418) (372,918)Profit on disposal of plant and equipment (8,315) (11,760) (1,182) (1,273)Impairment of investment in subsidiary - - 641 -

(Gain)/loss in fair value of consumable biological assets (10,401) 3,241 (8,452) 3,320Amortisation of bearer biological assets 44,798 45,475 34,900 35,537

Amortisation of VRS costs 19,998 9,663 17,506 8,744

Operating profit before working capital changes 1,297,246 1,146,084 53,875 14,537

(b) Working capital requirements comprise ofthe following:

Inventories 6,721 (169,840) (804) (168)Trade and other receivables (95,675) 299,869 (112,899) 373,218

Receivable from related parties (27,767) 23,916 (448,526) 90,308Trade and other payables (90,106) 86,535 20,122 34,723Payable to related parties 33,443 32,929 20,162 18,205

Provisions for VRS and Blue print costs (45,112) (65,682) (32,543) (4,303)

Total working capital requirements (218,496) 207,727 (554,488) 511,983

(c) Income tax paid

Taxation is reconciled to the amounts disclosed inthe statement of comprehensive income as follows:Amounts due at beginning of the year (19,604) (16,610) 153 (3,102)

Per statement of comprehensive income (28,773) (23,302) (6,234) (3,142)Amounts due at the end of the year 27,503 19,604 6,081 (153)

Total income tax paid (20,874) (20,308) - (6,397)

(d) Dividends paidDividends are reconciled to the amounts disclosedin the statement of comprehensive income as follows:

Amounts due at beginning of the year (167,531) (134,024) (167,531) (134,024)Dividends declared (184,284) (167,531) (184,284) (167,531)

Amounts due at the end of the year 184,284 167,531 184,284 167,531

Dividends paid (167,531) (134,024) (167,531) (134,024)

(e) Cash and cash equivalentsCash and cash equivalents consist of cash in hand and balances with banks and bank overdrafts.

Cash and cash equivalents are represented by:


Cash in hand and at bank 421,235 566,303 21,253 11,761

Debt service reserve account 164,154 144,154 - -Bank overdrafts (1,655,331) (1,099,532) (1,587,641) (997,475)

(1,069,942) (389,075) (1,566,388) (985,714)

THE GROUP THE COMPANY Notes 2011 2010 2011 2010 Rs000 Rs000 Rs000 Rs000

Cash flows from operating activitiesOperating profit before working capital changes a 1,297,246 1,146,084 53,875 14,537Working capital requirements b (218,496) 207,727 (554,488) 511,983

Net cash generated from/(absorbed in) operations 1,078,750 1,353,811 (500,613) 526,520

Interest paid (597,820) (651,433) (144,651) (180,360)Income tax paid c (20,874) (20,308) - (6,397)

Cash inflow/(outflow) from operating activities 460,056 682,070 (645,264) 339,763

Cash flows from investing activitiesPurchase of property, plant and equipment (346,710) (184,072) (15,208) (26,735)Investment in bearer biological assets (45,905) (42,619) (36,320) (32,251)Intangible assets (112,714) (35,624) - -Acquisition of investments in subsidiaries - - (11) -Acquisition of investments in financial assets (12) (276) - -Proceeds on disposal of land 159,335 376,579 159,335 376,579Proceeds on disposal of plant and equipment 8,315 14,975 1,182 4,307Proceeds from disposal of investment property 9,643 - 9,643 -

Deferred expenditure - VRS costs (12,830) (72,030) (12,812) (61,041)Interest received 34,077 49,836 102,904 99,260Dividends received from subsidiary companies - - 150,520 119,419Dividends received from available-for-sale investments 6,950 5,419 3,295 1,886

Cash flow (used in)/from investing activities (299,851) 112,188 362,528 481,424

Financing activitiesDividends paid to companys shareholde rs d (167,531) (134,024) (167,531) (134,024)Dividends paid to minority shareholders (100,000) (80,000) - -Payments of long-term borrowings (610,576) (866,570) (130,407) (205,921)Finance lease principal payments (526) - - -Proceeds from long-term borrowings - 1,390,250 - -Net (repayments)/proceeds from short-term borrowings - (281,835) - (276,728)

Cash flow (used in)/from financing activities (878,633) 27,821 (297,938) (616,673)

(Decrease)/increase in cash and cash equivalents (718,428) 822,079 (580,674) 204,514

Cash and cash equivalents at beginning of the year (389,075) (1,174,529) (985,714) (1,190,228)

Effect of foreign exchange rate changes 33,228 (36,625) - -Deconsolidation of subsidiary 4,333 - - -

Cash and cash equivalents at closing of the year e (1,069,942) (389,075) (1,566,388) (985,714)

The notes on pages 90 to 131 form an integral part of these financial statements.Auditors report on page 81.


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(a) Basis of preparation(Continued)

Improvements to IFRSs (issued May 6, 2010)

IAS 1 (Amendment), Presentation of FinancialStatements, clarifies that an entity may presentthe required reconciliations for each componentof other comprehensive income either in thestatement of changes in equity or in the notesto the financial statements. This amendment isnot expected to have any impact on the Groupsfinancial statements.

IAS 27 (Amendment), Consolidated andSeparate Financial Statements, clarifies that theconsequential amendments to IAS 21, IAS 28 andIAS 31 resulting from the 2008 revisions to IAS 27are to be applied prospectively. This amendmentis unlikely to have an impact on the Groupsfinancial statements.

IAS 34 (Amendment), Interim Financial Reporting,emphasises the disclosure principles in IAS 34 andadds further guidance to illustrate how to applythese principles. This amendment is not expectedto have any impact on the Groups financialstatements.

IFRS 1 (Amendment), First-time Adoption ofInternational Financial Reporting Standards,clarifies that a first-time adopter is exempt fromall the requirements of IAS 8 for the interimfinancial report it presents in accordance with IAS34 for part of the period covered by its first IFRSfinancial statements and for its first IFRS financialstatements. It also allows an entity to recognisean event-driven fair value measurement asdeemed cost when the event occurs, providedthat this is during the periods covered by its firstIFRS financial statements. This amendment isnot expected to have any impact on the Groupsfinancial statements.

IFRS 3 (Amendment), Business Combinations,clarifies that the choice of measuring non-

controlling interests at fair value or at theproportionate share of the acquirees net assetsapplies only to instruments that represent presentownership interests and entitle their holders to aproportionate share of the net assets in the eventof liquidation. All other components of non-controlling interest are measured at fair value

unless another measurement basis is required byIFRS. The application guidance in IFRS 3 applies toall share-based payment transactions that are part

of a business combination, including un-replacedand voluntarily replaced share-based paymentawards. This amendment is unlikely to have animpact on the Groups financial statements.

IFRS 7 (Amendment), Financial Instruments:Disclosures, clarifies the required level ofdisclosure around credit risk and collateral heldand provides relief from disclosures regardingrenegotiated loans. The Group has providedthe required disclosures OR This amendment isunlikely to have an impact on the Groups financialstatements.

IFRIC 13 (Amendment), Customer LoyaltyProgrammes clarifies that when the fair valueof award credits is measured on the basis ofthe value of the awards for which they could beredeemed, the fair value of the award creditsshould take account of expected forfeitures aswell as the discounts or incentives that wouldotherwise be offered to customers who havenot earned award credits from an initial sale. Thisamendment is unlikely to have an impact on theGroups financial statements.

Standards, Amendments to published Standardsand Interpretations issued but not yet effective

Certain standards, amendments to publishedstandards and interpretations have been issuedthat are mandatory for accounting periodsbeginning on or after January 1, 2012 or laterperiods, but which the Group has not earlyadopted.

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

Severe Hyperinflat ion and Removal of Fixed Datesfor First-time Adopters (Amendments to IFRS1)

(effective July 1, 2011)

Deferred Tax: Recovery of Underlying Assets(Amendments to IAS 12)

Disclosures - Transfers of Financial Assets(Amendments to IFRS 7) (effective July 1, 2011)

Notes to the

Financial Statements (Continued)year ended December 31, 2011

1 GENERAL INFORMATION

Omnicane Limited is a limited liability company

incorporated and domiciled in Mauritius. Theaddress of its register ed offi ce is 7th Floor, Anglo-Mauritius House, Adolphe de Plevitz Street, PortLouis.

These financial statements will be submitted forconsideration and approval at the forthcomingAnnual Meeting of Shareholders of the company.

2 SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in thepreparation of these financial statements are setout below. These policies have been consistentlyapplied to all the years presented, unlessotherwise stated.

(a) Basis of preparation

The financial statements of OmnicaneLimited (the Company) and its subsidiaries(the Group) comply with the Companies Act2001 and are prepared in accordance withInternational Financial Reporting Standards(IFRS). Where necessary, comparative figureshave been amended to conform with changesin presentation in the current year. The financialstatements are prepared under the historical costconvention, except that:

(i) Freehold Land is carried at revalued amount;

(ii) Investment properties are stated at fair value;

(iii) Consumable biological assets are stated atfair value; and

(iv) Available-for-sale securities are stated at theirfair value.

Standards, Amendments to published Standardsand Interpretations effective in the reportingperiod

Amendment to IAS 32, Classification of rightsissues, addresses the accounting for rights issuesthat are denominated in a currency other than thefunctional currency of the issuer. Provided certainconditions are met, such rights issues are nowclassified as equity regardless of the currency inwhich the exercise price is denominated.

Previously, these issues had to be accounted foras derivative liabilities. This amendment is notexpected to have any impact on the Groups

financial statements. Amendment to IFRS 1 Limited Exemption from

Comparatives IFRS 7 Disclosures for First-timeAdopters provides first-time adopters relieffrom presenting comparative information forthe new disclosures required by the March 2009amendments to IFRS 7 Financial Instruments:Disclosures. This amendment is not expectedto have any impact on the Groups financialstatements.

IFRIC 19, Extinguishing financial liabilities withequity instruments, clarifies the accounting byan entity when the terms of a financial liabilityare renegotiated and result in the entity issuingequity instruments to a creditor of the entity toextinguish all or part of the financial liability (debtfor equity swap). It requires a gain or loss to berecognised in profit or loss, which is measuredas the difference between the carrying amountof the financial liability and the fair value of theequity instruments issued. If the fair value of theequity instruments issued cannot be reliablymeasured, the equity instruments should bemeasured to reflect the fair value of the financialliability extinguished. This IFRIC will not have anyimpact on the Groups financial statements.

IAS 24, Related Party Disclosures (Revised2009), clarifies and simplifies the definition of arelated party and removes the requirement forgovernment-related entities to disclose details ofall transactions with the government and othergovernment-related entities. The Group and theparent have disclosed transactions between itssubsidiaries and its associates.

Amendments to IFRIC 14, Prepayments of aMinimum Funding Requirement correct anunintended consequence of IFRIC 14, IAS 19

The limit on a defined benefit asset, minimumfunding requirements and their interaction.Without the amendments, entities are notpermitted to recognise as an asset some voluntaryprepayments for minimum funding contributions.These amendments are not expected to have anyimpact on th e Groups financial statements.

Notes to the

Financial Statementsyear ended December 31, 2011


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(d) Property, plant and equipment

The annual rates used for the purpose are :

Buildings 2 - .25 %Power Plant & Equipment 5 - 7 %

Refinery Plant 5 %

Factory, Plant & Equipment 2 - 20 %

Where the carrying amount of an asset is greaterthan its estimated recoverable amount, it iswritten down immediately to its recoverableamount.

Gains and losses on disposal of property, plantand equipment are determined by reference totheir carrying amount and are taken into accountin determining operating profit. On disposal ofrevalued assets, amounts in revaluation and otherreserves relating to that asset are transferred toretained earnings.

(e) Investment properties Investment properties consist of land held for

capital appreciation and are stated at fair value.Gains or losses arising from changes in the fairvalue of investment properties are included in thestatement of comprehensive income in the yearin which they arise.

Investment properties have been valued at fairvalue by Gexim Land Consultants, propertyvaluers, in December 2003. The valuation wasarrived by reference to market evidence oftransaction prices for similar properties.

(f) Borrowing costs

Borrowing costs directly attributable to theacquisition, construction or production ofqualifying assets, which are assets that necessarily

take a substantial period of time to get ready fortheir intended use or sale are capitalised as partof the cost of the assets until such time as theassets are substantially ready for their intendeduse or sale. All other borrowing costs are chargedto the statement of comprehensive income in theperiod in which they are incurred.

(g) Intangible assets

Intangibl e assets acquired seperately aremeasured on initial recognition at cost. The

cost of intangible assets acquired in a businesscombination is fair value as at the date ofacquisition. Following initial recognition,intangible assets are carried at cost less anyaccumulated amortisation and any accumulatedimpairment losses. Internally generated intangibleassets, excluding capitalised development costs,are not capitalised and expenditure is reflectedin the income statement in the year in which theexpenditure is incurred.

The useful lives on intangibl e assets are assessedas either finite or indefinite.

Intangible assets with finite lives are amortisedover the useful economic life and assessed forimpairment whenever there is an indicationthat the intangible asset may be impaired.The amortisation period and the amortisationmethod for an intangible asset with a finite life

is reviewed at each financial year end. Changesin the expected useful life or the expectedpattern of consumption of future economicbenefits embodied in the asset is accounted forby changing the amortisation period or method,as appropriate, and are treated as changes inaccounting estimates. The amortisation expenseon intangible assets with finite lives is recognisedin the statement of comprehensive income inthe expense category with the function of theintangible asset.

Intangible assets with indefinite useful lives are notamortised, but are tested for impairment annuallyeither individually or at the cash generating unitlevel. The assessment of indefinite life is reviewedannually to determine whether the indefinite lifecontinues to be supportable. If not, the changein useful life from indefinite to finite is made on aprospective basis.

Gains or losses arising from derecognition of anintangible asset are measured as the differencebetween the net disposal proceeds and thecarrying amount of the asset and are recognisedin the statement of comprehensive income whenthe asset is derecognised.

Notes to the


2 SIGNIFIC ANT ACCOUNTING POLICIES(Continued)

(a) Basis of preparation(Continued) Amendments to IAS 1 Presentation of Items of

Other Comprehensive Income

IFRS 9 Financial Instruments

IAS 27 Separate Financial Statements

IAS 28 Investments in Associates and JointVentures

IFRS 10 Consolidated Financial Statements

IFRS 11 Joint Arrangements

IFRS 12 Disclosure of Interests in Other Entities

IFRS 13 Fair Value Measurement

IAS 19 Employee Benefits (Revised 2011)

Where relevant, the Group is still evaluatingthe effects of these Standards, amendments to

published Standards and Interpretations issuedbut not yet effective, on the presentation of itsfinancial statements.

The preparation of financial statements inconformity with IFRS requires the use of certaincritical accounting estimates. It also requiresmanagement to exercise its judgement in theprocess of applying the groups accountingpolicies. The areas involving a higher degreeof judgement or complexity, or areas whereassumptions and estimates are significantto the financial statements, are disclosed inNote 4.

(b) Turnover

Turnover represents the gross proceeds of sugar,molasses, bagasse and income receivable for thesupply of electricity to the National Grid of theCentral Electricity Board.

Sugar and molasses proceeds are recognised ontotal production of the crop year. Bagasse proceedsare accounted as and when it is receivable for theGroup. Sugar and molasses prices are based onprices recommended by the Mauritius Chamberof Agriculture for the crop year after consultationwith the Mauritius Sugar Syndicate. The differencebetween the recommended price and the finalprice is reflected in the financial year in which it isestablished.

Other revenues earned by the Group arerecognised on the following basis:

Dividend income - when the shareholdersright

to receive payment is established.

Interest income - on a time-proportion basisusing the effective interest method.

SIFB compensation - on an accrual basis.

(c) Government grants

Government grants are not recognised untilthere is reasonable assurance that the Group willcomply with the conditions attaching to themand that the grants will be received.

Government grants are recognised as income overthe periods necessary to match them with thecosts for which they are intended to compensate,on a systematic basis. Government grants thatare receivable as compensation for expensesor losses already incurred or for the purpose of

giving immediate financial support to the Groupwith no future related costs are recognised inthe statement of comprehensive income in theperiod in which they become receivable.

(d) Property, plant and equipment

All property, plant and equipment are initiallyrecorded at cost. Freehold Land is subsequentlyrevalued. The last revaluation was carried outby Gexim land Consultants, property valuers inDecember 2007 based on open market value.

Increases in the carrying amount arising onrevaluation are credited to revaluation and otherreserves in shareholdersequity. Decreases thatoffset previous increases of the same asset arecharged against the revaluation reserve; allother decreases are charged to the statement ofcomprehensive income.

Depreciation is calculated on the straight linemethod to write off the cost of assets, or therevalued amounts, to their residual values overtheir estimated useful lives as follows:

Notes to the



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(g) Intangible assets (Continued)

Rebranding cost(Continued)

All cost associated to the rebranding exercisehas been capitalised and included as intangibleassets. Rebranding cost is amortised over a periodof 20 years, time at which a full review of thebrand will be performed.

(h) Investment in subsidiar ies

Separate financial statements of the investor

In the separate financial statements of theinvestor, investments in subsidiary companiesare carried at cost (or at fair value). The carryingamount is reduced to recognise any impairmentin the value of individual investments.

Consolidated financial statements

Subsidiaries are all entities (including specialpurpose entities) over which the Group has thepower to govern the financial and operating

policies generally accompanying a shareholdingof more than one half of the voting rights. Theexistence and effect of potential voting rightsthat are currently exercisable or convertibleare considered when assessing whether theGroup controls another entity. Subsidiariesare fully consolidated from the date on whichcontrol is transferred to the Group. They are de-consolidated from the date that control ceases.

The acquisition method of accounting is usedto account for business combinations by theGroup. The consideration transferred for theacquisition of a subsidiary is the fair value of theassets transferred, the liabilities incurred andthe equity interests issued by the Group. Theconsideration transferred includes the fair valueof any asset or liability resulting from a contingentconsideration arrangement. Acquisition-relatedcosts are expensed as incurred. Identifiable assets

acquired and liabilities and contingent liabilitiesassumed in a business combination are measuredinitially at their fair values at the acquisitiondate. On an acquisition-by-acquisition basis, theGroup recognises any non-controlling interestsin the acquiree either at fair value or at the non-controlling interests proportionate share of theacquirees net assets.

The excess of the consideration transferred, theamount of any non-controlling interests in theacquiree and the acquisition-date fair value of anyprevious equity interest in the acquiree over thefair value of the Groups share of the identifiable

net assets acquired is recorded as goodwill. Ifthis is less than the fair value of the net assets ofthe subsidiary acquired in the case of a bargain

purchase, the difference is recognised directly inthe statement of comprehensive income.

Inter-company transactions, balances andunrealised gains on transactions between groupcompanies are eliminated.

Unrealised losses are also eliminated. Accountingpolicies of subsidiaries have been changed wherenecessary to ensure consistency with the policiesadopted by the Group.

Transactions and non-controlling interests

The Group treats transactions with non-controlling interests as transactions with equityowners of the Group.

For purchases from non-controlling interests,the difference between any consideration paidand the relevant share acquired of the carryingvalue of net assets of the subsidiary is recorded

in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

When the Group ceases to have control orsignificant influence, any retained interest in theentity is remeasured to its fair value, with thechange in carrying amount recognised in profit orloss. The fair value is the initial carrying amountfor the purposes of subsequently accounting forthe retained interest as an associate, joint ventureor financial asset. In addition, any amountspreviously recognised in other comprehensiveincome in respect of that entity are accounted foras if the Group had directly disposed of the relatedassets or liabilities. This may mean that amountspreviously recognised in other comprehensiveincome are reclassified to profit or loss.

If the ownership interest in an associate isreduced but significant influence is retained, only

a proportionate share of the amounts previouslyrecognised in other comprehensive income arereclassified to profit or loss where appropriate.

(i) Investment in associate d companies

The Company

Investments in associated companies arecarried at cost. The carrying amount is reducedto recognise any impairment in the value ofindividual investments.

Notes to the


2 SIGNIFICANT ACCOUNTING POLICIES(Continued)

(g) Intangible assets (Continued) Professional fees relating to the Power purchase

agreement

In the case of professional fees incurred in relationto the Purchasing Power Agreement (PPA), theuseful life is taken as the term of the contract, thatis 20 years.

Accounting software

The accounting software has been granted for aperiod of three years with the option of renewalat the end of this period.

Goodwill

Goodwill represents the excess of the cost ofan acquisition over the fair value of the groupsshare of the net identifiable assets of the acquiredsubsidiary/associate at the date of acquisition.

Goodwill on acquisition of subsidiaries is includedin intangible assets. Goodwill on acquisition ofassociates is included in investment in associates.

Goodwill is tested annually for impairment andcarried at cost less any accumulated impairmentlosses. For the purpose of impairment testing,goodwill is allocated to each of the groups cashgenerating units.

If the recoverable amount of the cash-generatingunit is less than the carrying amount of the unit,the impairment loss is allocated first to reduce thecarrying amount of any goodwill allocated to theunit and then to the other assets of the unit pro-rata on the basis of the carrying amount of eachasset in the unit. An impairment loss recognisedfor goodwill is not reversed in a subsequentperiod.

Blue Print costs The cash compensation together with the costs

of land and infrastructure payable under the BluePrint and Early Retirement Scheme is capitalisedas deferred expenditure. Such costs are chargedto statement of comprehensive income whenthe associated benefits related to the specialrights to acquire, convert and sell agriculturalland are realised. At the end of each financialyear, the carrying amount is subject to testingfor impairment and reduced to the recoverableamount, if this is less.

Management contract - The Company

The Company had acquired the rights to manageits subsidiary Omnicane Milling Operations

Limited under a management contract. The costhas been recognised as an intangible asset withindefinite life as the contract does not have adefined lifetime. The contract is assessed annuallyfor impairment.

Energy management contract - The Group

Omnicane Milling Operations Limited acquiredthe rights to the management contract betweenOmnicane Milling Operations Limited, OmnicaneThermal Energy Operations (St Aubin) Limitedand Omnicane Thermal Energy Operations (LaBaraque) Limited, two energy generating entities.

This management contract will run for a periodof twenty years in line with the provisions of thePurchasing Power Agreement between OmnicaneThermal Energy Operations (St Aubin) Limited andCentral Electricity Board and between Omnicane

Thermal Energy Operations (La Baraque) Limitedand Central Electricity Board.

These rights have been recognised as an intangibleasset and are amortised over the life of the contract.

Factory upgrading and modernising expenditure

Following the closure of Riche-en-Eau, MonTresor Mill and Saint Flix Mill, Omnicane MillingOperations Limited has become the sole canereceiving mill in the Southern region. OmnicaneMilling operations Limited has thereforeupgraded and modernised its factory to caterfor the transfer of cane to its mill. The cost ofupgrade and modernisation will be financedthrough special rights to acquire, convert andsell agricultural land under the provisions of theSugar Industry Effi ciency Act (SIE ACT ). OmnicaneMilling Operations Limited has recognised

these rights as an intangible asset and valuedthem at the cost of the expenditure incurred.Management has determined that this intangibleasset has an indefinite life and is assessed forimpairment on an annual basis.

Rebranding cost

In 2009, the Group completed a rebrandingexercise aiming at regrouping all members undera common brand.

Notes to the



7/24


(p) Retirement benefit obligations(Continued)

A portion of the actuarial gains and losses willbe recognised as income or expense if the net

cumulative unrecognised actuarial gains andlosses at the end of the previous accountingperiod exceeded the greater of:

(i) 10% of the present value of the defined benefitobligation at that date; and

(ii) 10% of the fair value of plan assets at that date.

Other retirement benefits

The present value of other retirement benefitsin respect of Labour Act gratuities is recognisedin the statement of financial position as a non-current liability.

State plan and defined contribution pension plan

Contributions to the National Pension Schemeand defined contribution pension plan are ex-pensed to the statement of comprehensive in-come in the period in which they fall due.

(q) Foreign currencies

Transactions denominated in foreign currenciesare recorded at the rate of exchange ruling on thetransaction date.

Monetary assets and liabilities expressed inforeign currencies are translated into MauritianRupees at the rates of exchange ruling at thestatement of financial position date. Exchangedifferences arising from foreign currenciestransactions are accounted for in the statementof comprehensive income.

(r) Income tax

The tax currently payable is based on taxable

profit for the year. Taxable profit differs fromprofit as reported in the income statementbecause it excludes items of income or expensethat are taxable or deductible in other years andit further excludes items that are never taxable ordeductible.

(s) Financial instruments

The Groups accountin g policies in respect of themain financial instruments are set out below:

(i) Investment in financial assets

Initial recognition

Investments are recognised on a trade-date basisand are initially measured at cost.

(A) Categories of financial assets

The Group classifies its financial assets in the fol-lowing categories: financial assets through profitor loss, loans and receivables, held-to-maturity in-vestments, and available-for-sale financial assets.

The classification depends on the purpose forwhich the investments were acquired. Manage-ment determines the classification of its financialassets at initial recognition.

(a) Financial assets at fair value through profitor loss

This category has two sub-categories: finan-cial assets held-for-trading, and those desig-nated at fair value through profit or loss atinception.

A financial asset is classified in this categoryif acquired principally for the purpose ofselling in the short term or if so designatedby management. Derivatives are also cat-egorised as held-for-trading unless they aredesignated as hedges. Assets in this categoryare classifed as current assets if they are ei-ther held for trading or are expected to berealised within twelve months to the end ofthe reporting period.

(b) Loans and receivables

Loans and receivables are non-derivativefinancial assets with fixed or determinablepayments that are not quoted in an activemarket. They arise when the Group providesmoney, goods or services directly to a debtorwith no intention of trading the receivable.They are included in current assets when ma-turity is within twelve months after the endof the reporting period or non-current assetsfor maturities greater than twelve months.

(c) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed ordeterminable payments and fixed maturitiesthat the Groups/Companys managementhas the positive intention and ability to holdto maturity.

Notes to the



(i) Investment in associated companies(Continued)

The Group

An associate is an entity over which the Grouphas significant influence but not control, or jointcontrol.

Investments in associated companies areaccounted for by the equity method.

Investment in associates are initially recorded atcost as adjusted by post acquisition changes inthe Groups share of the net assets of the associateless any impairment in the value of individualinvestments. When the Groups share of lossesexceeds its interests in an associate, the Groupdiscontinues recognising further losses, unlessit has a legal or constructive obligation to makepayments on behalf of the associate.

Unrealised profits and losses are eliminated to theextent of the Groups interests in the associate.

(j) Bearer biological assets

Cane replantation costs are deferred at cost andamortised over 7 years.

(k) Consumable biological assets

Standing canes are measured at fair value. The fairvalue of the living plants held for sale is based onexpected selling price and future direct costs tobring the biological assets to saleable condition,discounted at an appropriate discount rate to thereporting date.

(l) Deferred Expenditure

Voluntary Retirement Scheme (VRS) costs

VRS costs are capitalised as deferred expenditurewhen incurred as the costs will be recoupedthrough the sale of land on which no landconversion tax will be payable. VRS costs isamortised over a period of seven years. Theamortisation period is reviewed periodically toreflect the circumstances of the company. Whenthe sale of land is realised, the correspondingunamortised portion of deferred cost will berecognised in the statement of comprehensiveincome.

(m) Deferred Taxation

Deferred income tax is provided, using the liabilitymethod, for all temporary differences arising

between the tax bases of assets and liabilitiesand their carrying values for financial reportingpurposes.

The principal temporary differences arise fromdepreciation on property, plant and equipment,revaluation of certain non-current assets,provisions for retirement benefit obligations andtax losses carried forward. Deferred tax assetsrelating to the carry forward of unused tax lossesare recognised to the extent that it is probablethat future taxable profit will be available againstwhich the unused tax losses can be utilised.

(n) Inventories

Inventories are stated at the lower of cost andnet realisable value. Cost is determined by theweighted average method. The cost of finished

goods and work in progress comprises rawmaterials, direct labour, other direct costs andrelated production overheads but excludesinterest expense. Net realisable value is theestimate of the selling price in the ordinary courseof business less the costs of completion andselling expenses.

(o) Land under development

Land under development comprise of cost ofland to be sold and related infrastructural costs.This expenditure is released to the statementof comprehensive income to the extent cash isreceived on the sale of land.

(p) Retirement benefit obligations

Defined benefit pension plan The cost of providing benefits are actuarially

determined using the projected unit creditmethod. The present value of funded obligationsis recognised in the statement of financial positionas a non-current liability after adjusting for the fairvalue of plan assets, any unrecognised actuarialgains and losses and any unrecognised pastservice cost. The valuation of funded obligationsis carried out annually by a firm of actuaries.

The current service cost and any recognised pastservice cost are included as an expense togetherwith the associated interest cost, net of expectedreturn on plan assets.

Notes to the



8/24OmnicaneAnnualReport 2011 OmnicaneAnnualReport 201198 99

(v) Impairment of assets (Continued)

Assets that are subject to amortisation arereviewed for impairment whenever events or

changes in circumstances indicate that thecarrying amount may not be recoverable. Animpairment loss is recognised for the amount bywhich the carrying amount of the asset exceedsits recoverable amount. The recoverable amountis the higher of an assets fair value less costs tosell and value in use. For the purposes of assessingimpairment, assets are grouped at the lowestlevels for which there are separately identifiablecash flows (cash-generating units).

(w) Non-current assets held for sale

Non-current assets classified as held for saleare measured at the lower of carrying amountand fair value less costs to sell if their carryingamount is recovered principally through a saletransaction rather than through a continuing use.This condition is regarded as met only, when the

sale is highly probable and the asset is availablefor immediate sale in its present condition.

(x) Related parties

Related parties are individuals and companieswhere the individual or company has the ability,directly or indirectly, to control the other party orexercise significant influence over the other partyin making financial and operating decisions.

(y) Dividend distribution

Dividend distribution to the companys share-holders is recognised as a liability in the Groupsfinancial statements in the period in which thedividends are declared.

(z) Cash flow hedge

The Company has a subsidiary which has a foreignbank loan (hedge item) denominated in Euroand has its revenue stream (hedge instrument)in Euro. The subsidiary has a cash flow hedgewhereby the foreign exchange exposure arisingfrom translation of the bank loan is hedgedagainst the revenue stream.

Exchange differences arising from the translationof the loan is taken to Hedging reserve. Therealised gain/(loss) on repayment of the bank

loan is then released to the statement ofcomprehensive income.

When the hedging instrument expires or is sold,

or when a hedge no longer meets the criteria forhedge accounting, any cumulative gain or lossexisting in equity at that time remains in equityand is recognised when the forecast transactionis ultimately recognised in the statementof comprehensive income. When a forecasttransaction is no longer expected to occur, thecumulative gain or loss that was reported inequity is immediately transferred to the statementof comprehensive income within finance costs.

(aa) Segment reporting

Segment informat ion presented relate to theoperating segments that are engaged in thebusiness activities for which revenues are earnedand expenses incurred.

3 FINANCIAL RISK MANAGEMENT

3.1 Financial Risk Factors

The Groups activities expose it to a variety offinancial risks; market risk (including currency risk,price risk and cash flow and fair value interest raterisk), credit risk and liquidity risk.

A description of the significant risk factors isgiven below together with the risk managementpolicies applicable.

(a) Market risk

(i) Currency risk

The Groups activities is mainly in the sugarcanegrowing and milling, and electricity production.The market strategy for the sale of raw and refinedsugar rests with the Mauritius Sugar Syndicate

(MSS) which is responsible for negotiating thesale of the sugar production of the country withpotential buyers. There is a much wider anddiverse demand for white sugar in Europe whichmitigates the market risk. The Group invoices itsrefined sugar in Euro to the MSS. For electricityproduction, sale is made solely to the CentralElectricity Board (CEB) and is based on a PowerPurchase Agreement (PPA) for both energycompanies. Coal used for electricity production ispurchased in US dollar. However, any fluctuationin foreign currency is passed over to the CEB perthe PPA.

Notes to the



(s) Financial instruments(Continued)(i) Investment in financial assets (Continued)

(d) Available-for-sale financial assets

Available-for-sale financial assets are non-derivatives that are either designated inthis category or not classified in any of theother categories. They are included in non-current assets unless management intendsto dispose of the investment within twelvemonths of the end of the reporting period.

(ii) Loans and receivables

Loans and receivables are non-derivative financialassets with fixed or determinable payments thatare not quoted in an active market. They arisewhen the Group provides money, goods orservices directly to a debtor with no intentionof trading the receivable. They are included in

current assets when maturity is within twelvemonths after the end of the reporting period dateor non-current assets for maturities greater thantwelve months.

(iii) Trade receivables

Trade receivables are recognised initially at fairvalue and subsequently measured at amortisedcost using the effective interest method, lessprovision for impairment. A provision forimpairment of trade receivables is establishedwhen there is objective evidence that the Groupwill not be able to collect all amounts dueaccording to the original terms of receivables.

The amount of the provision is the differencebetween the assets carrying amount andthe present value of estimated future cashflows, discounted at the effective interest rate.The amount of provision is recognised in the

statement of comprehensive income.

(iv) Borrowings

Interest-bearing bank loans, debentures andoverdrafts are recorded at the proceeds received,net of direct issue costs. Finance charges,including premiums payable on settlement orredemption, are accounted for on an accrual basisand are added to the carrying amount of theinstrument to the extent that they are not settledin the period in which they arise.

Borrowings are classified as current liabilitiesunless the Group has an unconditional right todefer settlement of the liability for at least twelve

months after the end of the reporting period. (v) Trade payables

Trade payables are stated at fair value andsubsequently measured at amortised cost usingthe effective interest method.

(vi) Cash and cash equivalent s

Cash and cash equivalents include cash inhand, deposits held at call with banks and bankoverdrafts.

Bank overdrafts are shown within borrowings incurrent liabilities on the statement of financialposition.

(vii) Equity instruments

Equity instrumen ts are recorded at the proceedsreceived, net of direct issue costs.

(viii) Share capital

Ordinary shares are classified as equity.

(t) Provisions

Provisions are recognised when the Group hasa present or constructive obligation as a resultof past events which will probably result inan outflow of economic benefits that can bereasonably estimated. They are measured atthe directors best estimate of the expenditurerequired to settle the obligation at the reportingdate.

Provisions are reviewed at each statement offinancial position date and adjusted to reflect thecurrent best estimate.

(u) Alternative Minimum Tax (AMT) Alternative Minimum Tax (AMT) is provided for,

where a Company which has a tax liability of lessthan 7.5% of its book profit pays a dividend. AMTis calculated as the lower of 10% of the dividendpaid and 7.5% of book profit.

(v) Impairment of assets

Assets that have an indefinite useful life are notsubject to amortisation but are tested annuallyfor impairment.

Notes to the




The table below analyses the Groups financial liabilities into relevant maturity groupings based on theremaining period at the reporting date to the contractual maturity date:

THE GROUP Less than Between 1 Between 2 Over1 year and 2 years and 5 years 5 years

Rs000 Rs000 Rs000 Rs000

At December 31, 2011

Trade and other payables 579,919 - - - Bank borrowings 2,202,631 569,374 1,316,969 2,629,933 Finance lease liabilities 1,009 1,100 1,887 - Payable to related parties 80,595 - - -

At December 31, 2010 Trade and other payables 670,025 - - - Bank borrowings 1,681,741 557,736 1,408,504 3,125,705 Payable to related parties 47,152 - - -

THE COMPANY Less than Between 1 Between 2 Over1 year and 2 years and 5 years 5 years

Rs000 Rs000 Rs000 Rs000

At December 31, 2011

Trade and other payables 95,666 - - - Borrowings 1,685,309 98,734 255,809 85,930 Payable to related parties 51,570 - - -

At December 31, 2010 Trade and other payables 75,545 - - - Borrowings 1,127,881 99,162 310,067 128,913 Payable to related parties 31,408 - - -

Notes to the


Notes to the


3 FINANCIAL RISK MANAGEMENT(Continued)

3.1 Financial Risk Factors (Continued)

At December 31, 2011, if the Rupee hadweakened/strenghthened by 5% against the USDollar and the Euro with all other variable heldconstant, post tax profit and equity would havebeen Rs.5,578,000 (2010: Rs.184,000) higher/lower for the Company following changes inforeign exchange gains/losses on translation ofUS Dollar and Euro denominated cash balances.

At December 31, 2011, if the Rupee had weakened/strenghthened by 5% against the US Dollar andthe Euro with all other variable held constant,post tax profit would have been Rs.8,262,000higher/lower (2010: Rs.5,004,000 lower/higher)and equity Rs.27,707,000 lower/higher (2010:Rs.20,920,000) for the Group following changesin foreign exchange differences on translation ofUS Dollar and Euro denominated cash balances,

trade receivables and bank borrowings. (ii) Price risk

The Group is exposed to equity securities pricerisk because of investments in financial assetsheld by the Group and classified as available-for-sale.

Sensitivity analysis

The table below summarises the impact ofincreases/decreases in the fair value of theinvestments on the Groups equity. The analysis isbased on the assumption that the fair value hadincreased/decreased by 5%.

Impact on equity


2011 2010 2011 2010 Rs000 Rs000 Rs000 Rs000

Categories of

investments: Available-for-sale 8,587 8,933 2,868 2,721

(iii) Cash flow and fair value interest rate risk

As the Group has no significant interest-bearingassets, its income and operating cash flows

are substantially independent of changes inmarket interest rates. The Groups interest raterisk arises from borrowings. Borrowings issuedat variable rates expose the Group to cash flowinterest-rate risk. At December 31, 2011 if interestrates on borrowings had been 50 basis pointshigher/lower with all other variables heldconstant, post-tax profit for the year would havebeen Rs.7,131,000 (2010: Rs.4,055,000) lower/higher for the Company and Rs.29,741,000 (2010:Rs.30,146,000) lower/higher for the Group, mainlyas a result of higher/lower interest expense onfloating rate borrowings.

(b) Credit risk

The carrying amount of financial assetsrecorded in the financial statements, which isnet of impairment losses, represents the groupsmaximum exposure to credit risk without taking

account of the value of any collateral obtained.

The Groups main debtors are the MauritiusSugar Syndicate on account of sugar proceedsreceivable, and the Central Electricity Board forthe sale of electricity.

The Groups energy clusters credit risk is highlymitigated by the fact that accounts receivablefrom its sole customer, the Central ElectricityBoard, is guaranteed by the Government.

(c) Liquidity risk

Prudent liquidity risk management impliesmaintaini ng suffi cient cash marketabl e fundingthrough an adequate amount of committedcredit facilities. The Group aims at maintainingflexibility in funding by keeping committed creditlines available.

Management monitors rolling forecasts of theGroups liquidity reserve on the basis of expectedcash flow and does not foresee any major liquidityrisk over the next two years.



3.4 Biological assets

The Group is exposed to fluctuations in the priceof sugar and the incidence of exchange rate. The

risk affects both the crop proceeds and the fairvalue of biological assets. The risk is not hedged.

4 CRITICA L ACCOUNTING ESTIMATES

AND JUDGEMENTS

In the application of the Groups accountingpolicies, management is required to makejudgements, estimates and assumptions aboutthe carrying amounts of assets and liabilitiesthat are not readily apparent from other sources.The estimates and associated assumptions arebased on historical experience and other factorsthat are considered to be relevant. Actual resultsmay differ from these estimates. The estimatesand underlying assumptions are reviewed on anongoing basis. Revisions to accounting estimates

are recognised in the period of the revision andfuture periods if the revision affects both currentand future periods.

Key sources of estimation uncertainty

The key assumptions concerning the future, andother key sources of estimation uncertainty atthe statement of financial position date, thathave a significant risk of causing a materialadjustment to the carrying amounts of assetsand liabilities within the next financial year, arediscussed below.

(i) Estimated impairment of goodwill

Determining whether goodwill is impairedrequires an estimation of the value in use of thecash-generating units to which goodwill has beenallocated. The value in use calculation requiresthe entity to estimate the future cash flowsexpected to arise from the cash-generating unitsand a suitable discount rate in order to calculatepresent value.

(ii) Consumable biological assets - Standing Canes

The fair value of consumable biological assets hasbeen arrived at by discounting the present valueof expected net cash flows from standing canes atthe relevant market determined pre-tax rate.

The expected cash flows have been computedby estimating the expected crop and the sugarextraction rate and the forecasts of sugar prices

which will prevail in the coming year for standingcanes.

The harvesting costs and other direct expensesare based on the yearly budgets of the Group.

(iii) Other investments - Available for sale

Level 3 Available -for-sale investments are stated atcost since no reliable estimate could be obtainedto compute the fair value of these securities.The directors used their judgement at year-end and reviewed the carrying amount of theseinvestments and in their opinion there were nomaterial difference between the carrying amountand the fair value of the unquoted securities. Totheir judgement, the carrying amount reflect thefair value of these investments.

(iv) Impairment of available-for-sale financialassets

The Group follow the guidance of IAS 39 ondetermining when an investment is other-than-temporarily impaired.

This determination requires significantjudgement. In making this judgement, theyevaluate, among other factors, the duration andextent to which the fair value of an investmentis less than its cost, and the financial healthof and near-term business outlook for theinvestee, including factors such as industry andsector performance, changes in technology andoperational and financing cash flow.

(v) IFRIC 4 - Whether arrangements contains alease

In preparing these financial statements, theDirectors have considered the implications ofIFRIC 4 - Whether an arrangement contains

a lease and have concluded that the PowerPurchase Agreement of the energy subsidiarieswith the Central Electricity Board does meet thecriteria qualifying for a lease arrangement.

(vi) Recoverability of proceeds from sale of Land

At December 31, 2011, management consideredthe recoverability of proceeds from sale of landunder Section 8 of the Land Acquisition Act.Proceeds have been determined on a case by casebasis and take into account the location of theland, surveyorsreport and previous sale of similarproperties in the vicinity.

Notes to the


3. FINANCIAL RISK MANAGEMENT (Continued)

3.2 Capital risk management The Groups objective when managing capital is

to safeguard the entitys ability to continue as agoing concern so that it can continue to providereturns for shareholders and benefits for otherstakeholders.

The Group sets the amount of capital inproportion to risk. The Group manages the capitalstructure and makes adjustments to it in the lightof changes in economic conditions and the riskcharacteristics of the underlying assets. In orderto maintain or adjust the capital structure, the

Group may adjust the amount of dividends paidto shareholders, return capital to shareholders orsell assets to reduce debt.

Consistently with others in the industry, theGroup monitors capital on the basis of the debt-to-adjusted capital ratio. This ratio is calculatedas net debt over adjusted capital. Net debtis calculated as total debt (as shown in thestatement of financial position) less cash in handand at bank and short term deposits, adjustedcapital comprises all components of equity (i.e.share capital, retained earnings and reserves).

The debt-to-adjusted capital ratios at December31, 2011 and December 31, 2010 were as follows:

3.3 Fair value estimation

The fair value of financial instruments tradedin active markets is based on quoted marketprices at the end of the reporting period. Amarket is regarded as active if quoted prices arereadily and regularly available from an exchange,dealer, broker, industry group, pricing service, orregulatory agency, and those prices representactual and regularly occurring market transactionson an arms length basis. The quoted market price

used for financial assets held by the Group is thecurrent bid price. These instruments are includedin level 1. Instruments included in level 1 compriseprimarily quoted equity investments classified astrading securities or available-for-sale.

The fair value of financial instruments that are nottraded in an active market is determined by usingvaluation techniques. These valuation techniquesmaximise the use of observable market datawhere it is available and rely as little as possible onspecific estimates. If all significant inputs required

to fair value an instrument are observable, theinstrument is included in level 2.

If one or more of the significant inputs is notbased on observable market data, the instrumentis included in level 3.

Specific valuation techniques used to valuefinancial instruments include:

Quoted market prices or dealer quotes for similarinstruments.

Other techniques, such as discounted cash flowanalysis, are used to determine fair value for theremaining financial instruments.

The nominal value less estimated creditadjustments of trade receivables and payablesare assumed to approximate their fair values.The fair value of financial liabilities for disclosurepurposes is estimated by discounting the futurecontractual cashflows at the current marketinterest rate that is available to the Group forsimilar financial instruments.


2011 2010 2011 2010 Rs000 Rs000 Rs000 Rs000

Total debt 6,722,903 6,773,686 2,125,782 1,666,023

Less: cash in hand and at bank (585,389) (710,457) (21,253) (11,761)Net debt 6,137,514 6,063,229 2,104,529 1,654,262

Shareholders interests 6,920,233 6,263,714 5,488,755 4,947,781

Debt to adjusted capital ratio 0.89 0.97 0.38 0.33

Notes to the



11/24OmnicaneAnnualReport 2011OmnicaneAnnualReport 2011104 105

Notes to the


5 TURNOVER

THE GROUP THE COMPANY 2011 2010 2011 2010

Rs000 Rs000 Rs000 Rs000

Sugar, molasses and bagasse 809,962 695,036 263,005 229,111Refined sugar 398,469 299,750 - -Sugar insurance compensation 371 11,501 40 2,469Electricity generation 2,631,179 2,418,601 - -Agricultural diversification and others 72,972 46,613 62,938 44,169

3,912,953 3,471,501 325,983 275,749

6 OTHER OPERATING INCOME


Profit on sale of plant and equipment 8,315 11,760 1,182 1,273Sundry income 11,189 8,203 - -

19,504 19,963 1,182 1,273

7 OPERATING PROFIT


Operating profit is arrived at after charging:Depreciation on property, plant and equipment 379,723 399,073 16,913 17,777Amortisation of bearer biological assets 44,798 45,475 34,900 35,537Amortisation of intangible assets 21,844 21,362 52 52Raw materials and consumables used 1,721,801 1,385,300 36,275 37,698Employees remuneration (note 7(a)) 351,076 362,721 103,856 98,764and crediting:Other expenses 550,042 659,141 117,881 132,967

Total 3,069,284 2,873,072 309,877 322,795

Profit on disposal of plant and equipment (8,315) (11,760) (1,182) 1,273

(a) Employees remuneration


Wages and salaries 327,281 330,002 89,431 82,940Pension costs 23,795 32,719 14,425 15,824

351,076 362,721 103,856 98,764

4 CRITICAL ACCOUNTING ESTIMATES

AND JUDGEMENTS(Continued)

(vii) Depreciation policies

Property, plant and equipment are depreciatedto their residual values over their estimateduseful lives. The residual value of an asset is theestimated net amount that the Group wouldcurrently obtain from the disposal of the assetif the asset was already of the age and in thecondition expected at the end of its useful life.

The directors therefore make estimates based inhistorical experience and use best judgement toassess the useful lives of assets and to forecast theexpected residual values of the assets at the endof their expected useful lives.

(viii) Pension benefits

The present value of the pension obligationsdepend on a number of factors that aredetermined on an actuarial basis using a number

of assumptions. The assumptions used indetermining the net cost (income) for pensionsinclude the discount rate. Any changes in theseassumptions will impact the carrying amount ofpension obligations.

The Group determines the appropriate discountrate at the end of each year. This is the interestrate that should be used to determine the presentvalue of estimated future cash outflows expectedto be required to settle the pension obligations.In determining the appropriate discount rate, theGroup considers the interest rates of high-qualitycorporate bonds that are denominated in thecurrency in which the benefits will be paid, andthat have terms to maturity approximating theterms of the related pension liability.

Notes to the




Notes to the


11 TAXATION (Continued)

The tax on the Groups profit before tax differs from the theoretical amount that would arise using the basic

tax rate of the Group as follows: THE GROUP THE COMPANY 2011 2010 2011 2010 Rs000 Rs000 Rs000 Rs000

Profit before tax: 577,185 448,868 398,002 355,099

Tax calculated at current income tax rate of 15%(2010: 15%) 86,578 67,330 59,700 53,265Income not subject to tax (82,230) (57,431) (58,707) (74,321)Expenses not deductible for tax purposes 10,685 58,503 5,909 25,651Alternative Minimum Tax 25,960 20,000 3,504 -Underprovision in previous year 83 2,733 - 3,142Tax losses for which no deferred income tax assetwas recognised 44,588 41,644 - -Capital gains tax 2,730 - 2,730 -

Tax charge for the year 88,394 132,779 13,136 7,737

(b) Current tax liability/(asset)


At January 1, 19,604 16,610 (153) 3,102

Movement during the year:Current 15% tax on the adjusted profitfor the year - 569 - -Alternative Minimum Tax 25,960 20,000 3,504 -Capital gains tax 2,730 - 2,730 -Underprovision in previous year 83 2,733 - 3,142

28,773 23,302 6,234 3,142Less:Tax deducted at source - (153) - (153)Tax paid (20,874) (20,155) - (6,244)

(20,874) (20,308) - (6,397)

At December 31, 27,503 19,604 6,081 (153)

Disclosed as follows:

Current tax assets - (153) - (153)Current tax liabilities 27,503 19,757 6,081 -

27,503 19,604 6,081 (153)

Notes to the


8 INVESTMENT INCOME


Rs000 Rs000 Rs000 Rs000

Interest income 34,077 49,836 102,904 99,260Dividend income 6,950 5,419 153,816 121,305

41,027 55,255 256,720 220,565

9 FINANCE COSTS


Foreign exchange (gains)/losses (12,241) (70,546) (6,180) 187

Interest expense:- Bank overdrafts 66,080 123,295 60,205 89,737- Bank and other loans 528,741 528,138 84,446 90,623- Related parties 2,999 - - -

597,820 651,433 144,651 180,360

585,579 580,887 138,471 180,547

10 EXCEPTIONAL ITEMS


Profit on disposal of land 278,429 372,918 278,429 372,918Write off of receivable (6,910) - (6,910) -

271,519 372,918 271,519 372,918

11 TAXATION


(a) Charge for the yearCurrent tax on adjusted profit for the yearat 15% (2010: 15%) - 569 - -Alternative minimum tax 25,960 20,000 3,504 -Underprovision in previous year 83 2,733 - 3,142Capital gains tax 2,730 - 2,730 -Deferred tax (note 21) 59,621 109,477 6,902 4,595

Tax charge for the year 88,394 132,779 13,136 7,737



Notes to the


13 PROPERTY, PLANT AND EQUIPMENT (Continued)

(a) THE GROUP (Continued)

(iii) If the freehold land was stated on the historical cost basis, the amounts would be as follows:

2011 2010 Freehold Freehold Land Land Rs000 Rs000

Cost 349,527 364,187

(b) THE COMPANY Freehold Leasehold Plant and Land Buildings Properties Equipment Total Rs000 Rs000 Rs000 Rs000 Rs000 2011

Valuation / Cost 3,682,038 68,830 2,466 245,929 3,999,263Accumulated depreciation - (16,594) - (183,937) (200,531)

Net Book Value 3,682,038 52,236 2,466 61,992 3,798,732

2010Valuation / Cost 3,747,501 66,881 2,466 252,009 4,068,857Accumulated depreciation - (14,816) - (188,141) (202,957)

Net Book Value 3,747,501 52,065 2,466 63,868 3,865,900

Freehold Leasehold Plant and NET BOOK VALUES Land Buildings Properties Equipment Total Rs000 Rs000 Rs000 Rs000 Rs000

2011At January 1, 2011 3,747,501 52,065 2,466 63,868 3,865,900Additions - 1,948 - 13,260 15,208Disposals (65,463) - - - (65,463)Depreciation - (1,777) - (15,136) (16,913)

At December 31, 2011 3,682,038 52,236 2,466 61,992 3,798,732

2010At January 1, 2010 3,791,115 9,466 2,466 100,543 3,903,590Additions - 10,988 - 15,747 26,735Disposals (43,614) - - (3,034) (46,648)Depreciation - (1,175) - (16,602) (17,777)Transfer - 32,786 - (32,786) -

At December 31, 2010 3,747,501 52,065 2,466 63,868 3,865,900

Notes to the


12 EARNINGS PER SHARE


Rs000 Rs000 Rs000 Rs000

Basic earnings per share (Rs.) 5.86 3.71 5.74 5.18Based on:

Profit after tax and non-controlling interests (Rs000) 392,940 248,916 384,866 347,362Number of ordinary shares in issue 67,012,404 67,012,404 67,012,404 67,012,404

13 PROPERTY, PLANT AND EQUIPMENT

(a) THE GROUP

Freehold Leasehold Power Plant Factory & Refinery Plant and Work In

Land Buildings Properties & Equipment Equipment Plant Equipment Progress Total

Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000

2011

Valuation / Cost 4,419,675 197,085 2,466 4,983,926 751,761 1,250,561 375,716 229,330 12,210,520

Accumulated depreciation - (54,785) - (1,207,135) (114,625) (125,288) (263,121) - (1,764,954)

Net Book Value 4,419,675 142,300 2,466 3,776,791 637,136 1,125,273 112,595 229,330 10,445,566

2010

Valuation / Cost 4,471,846 174,657 2,466 4,907,651 848,636 1,249,977 328,281 51,529 12,035,043

Accumulated depreciation - (46,688) - (959,622) (99,982) (65,917) (237,667) - (1,409,876)

Net Book Value 4,471,846 127,969 2,466 3,948,029 748,654 1,184,060 90,614 51,529 10,625,167

NET BOOK VALUES

Freehold Leasehold Power Plant Factory & Refinery Plant and Work In

Land Buildings Properties & Equipment Equipment Plant Equipment Progress Total


2011

At January 1, 2011 4,471,846 127,969 2,466 3,948,029 748,654 1,184,060 90,614 51,529 10,625,167

Additions 13,292 22,428 - 76,275 13,291 584 47,559 179,632 353,061

Disposals (65,463) - - - - - - - (65,463)

Depreciation - (8,097) - (247,513) (39,288) (59,371) (25,454) - (379,723)

Transfer to Non-current

assets held for sale (34(b)) - - - - (85,521) - - - (85,521)

Deconsolidation

of subsidiary - - - - - - (124) - (124)

Consolidation

adjustment - - - - - - - (1,831) (1,831)

At December 31, 2011 4,419,675 142,300 2,466 3,776,791 637,136 1,125,273 112,595 229,330 10,445,566

2010

At January 1, 2010 4,515,460 132,268 2,466 4,138,439 786,967 1,191,702 98,510 21,185 10,886,997

Additions - 693 - 62,864 10,725 10,529 26,013 73,248 184,072

Disposals (43,614) - - - - - (3,215) - (46,829)

Depreciation - (7,431) - (253,274) (49,038) (61,075) (28,255) - (399,073)

Transfers - 2,439 - - - 42,904 (2,439) (42,904) -

At December 31, 2010 4,471,846 127,969 2,466 3,948,029 748,654 1,184,060 90,614 51,529 10,625,167

(i) Freehold Land has been revalued by Gexim Land Consultants, property valuers in December 2007 based on open market value. The revaluation surplus,net of deferred tax, was credited to revaluation reserve.

(ii) Borrowings are secured by floating charges on the assets of the group, including property, plant and equipment. (note 28).



Notes to the


15 INTANGIBLE ASSETS (Continued)

Goodwill is allocated to the cash generating units. The carrying amount of goodwill had been allocated as

follows: THE GROUP

2011 & 2010 Rs000

Floreal Ltd 427Omnicane Agricultural Operations Ltd 20,152Omnicane Milling Holdings (Britannia Highlands) Ltd 6,077Omnicane Thermal Energy Holdings (St Aubin) Ltd 46,597

73,253

Impairment assessment has been performed comparing net realisable value, based on land developmentpotential and carrying amount. No impairment of goodwill is considered necessary after having comparedthe net realisable value and the carrying amount.

(b) THE COMPANY 2011 2010

Rebrandin g Management

costs Contract Total Total Rs000 Rs000 Rs000 Rs000

COSTAt January 1, and at December 31, 1,038 219,500 220,538 220,538

AMORTISATIONAt January 1, 104 - 104 52Charge for the year 52 - 52 52

At December 31, 156 - 156 104

NET BOOK VALUESAt December 31, 882 219,500 220,382 220,434

16 INVESTMENT IN SUBSIDIA RY COMPANIES

THE COMPANY 2011 2010 Rs000 Rs000

COSTAt January1, 1,364,831 1,364,831Additions 11 -Disposal (641) -

At December 31, 1,364,201 1,364,831

Notes to the


13 PROPERTY, PLANT AND EQUIPMENT (Continued)

(b) THE COMPANY (Continued)

(i) Freehold Land has been revalued by Gexim Land Consultants, property valuers in December 2007 based onopen market value. The revaluation surplus, net of deferred tax, was credited to revaluation reserve.

(ii) Borrowings are secured by floating charges on the assets of the group, including property, plant andequipment. (note 28)

(iii) If the freehold land was stated on the historical cost basis, the amounts would be as follows:

2011 2010 Freehold Freehold Land Land Rs000 Rs000

Cost 185,047 199,707

14 INVESTMENT PROPERTIES

Freehold Land THE GROUP & THE COMPANY 2011 2010

Rs000 Rs000Fair valueAt January 1 and December 31, - 9,643

(b) Investment properties have been valued at fair value by Gexim Land Consultants, property valuers, inDecember 2003. The valuation was arrived by reference to market evidence of transaction prices for similarproperties. There was no rental income and no direct operating expenses attributable to the investmentproperties.

15 INTANGIBLE ASSETS

a) THE GROUP

2011 2010

Software &

Professional Centralisation Management Rebranding Fees Goodwill Costs Contracts Costs Total Total

Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000

COST

At January 1, 85,059 73,253 502,123 555,200 11,333 1,226,968 1,191,344

Additions 935 - 480,540 - - 481,475 35,624

RBO Movement - - (13,150) - - (13,150) -

At December 31, 85,994 73,253 969,513 555,200 11,333 1,695,293 1,226,968

AMORTISATION

At January 1, 18,489 - 12,432 33,568 771 65,260 43,898

Charge for the year 2,934 - - 16,784 2,126 21,844 21,362

At December 31, 21,423 - 12,432 50,352 2,897 87,104 65,260

CARRYING AMOUNT

At December 31, 64,571 73,253 957,081 504,848 8,436 1,608,189 1,161,708



Notes to the


Notes to the


16 INVESTMENT IN SUBSIDI ARY COMPANIES (Continued)

(a) Subsidiaries of Omnicane Limited:

2011 2010

% Holding Amount % Holding Amount

Held by Held by Type of Held other group Held other group

Company shares held Activity Directly companies Rs000 Directly companies Rs000

Direct Holding

. Omnicane Milling Holdings (Mon Trsor) Limited Ordinary Investment 80 - 118,242 80 - 118,242

. Omnicane Milling Holdings (Britannia Highlands) Ltd Ordinary Investment 80 - 272,037 80 - 272,036

. Floreal Limited Ordinary Investment 100 - 3,188 100 - 3,188

. FAW Investment Limited Ordinary Investment 100 - 148,206 100 - 148,206

. Exotic Exports Limited Ordinary Flower Export 100 - - 100 - 642

. Omnicane Logistic Operations Limited Ordinary Transport 100 - 25 100 - 25

. Omnicane Thermal Energy Holdings (St Aubin) Ltd Ordinary Investment 100 - 287,271 100 - 287,271

. Omnicane Holdings (La Baraque) Thermal Energy Limited Ordinary Investment 100 - 535,221 100 - 535,221

. Omnicane Wind Energy Limited Ordinary Energy 100 - 0.1 - - -

. Omnicane Britannia Windfarm Operations Limited Ordinary Energy 100 - 0.1 - - -

. Omnicane Ethanol Holdings Limited Ordinary Ethanol 100 - 10 - - -

. Airport Hotel Ltd Ordinary Hotel 100 - 0.1 - - -

. Omnicane Ethanol Production Ltd Ordinary Ethanol 100 - 0.1 - - -

. Omnicane International Investment Co Ltd Ordinary Investment 100 - 0.1 - - -

Omnicane Africa Investment Ltd Ordinary Investment 100 - 0.1 - - -

1,364,201 1,364,831

Indirect Holding

. Omnicane Milling Operations Limited Ordinary Sugar Milling - 80 390,888 - 80 390,888

& Refining

. Omnicane Agricultural Operations Ltd Ordinary Sugar Growing - 100 10,400 - 100 10,400

. Omnicane Thermal Energy Operations (St Aubin) Limited Ordinary Energy - 60 153,000 - 60 153,000

. Omnicane Thermal Energy Operations (La Baraque) Limited Ordinary Energy - 60 456,600 - 60 456,600

1,010,888 1,010,888

(b) The financial statements of all above subsidiaries, included in the consolidated financial statements, are co-terminous with those ofthe holding company. Except for FAW Investment Limited, which is incorporated in the Isle of Man, all the subsidiary companies areincorporated in the Republic of Mauritius.

17 INVESTMENT IN ASSOCIATED COMPANIES


Rs000 Rs000 Rs000 Rs000

At January 1, 26,771 30,677 10,688 100Additions - - - 10,588Share of results after taxation (3,358) (3,906) - -

At December 31, 23,413 26,771 10,688 10,688

17 INVESTMENT IN ASSOCIATED COMPANIES (Continued)

The results of the following associated companies have been included in the consolidated financial

statements: Year Country of Direct Indirect Profit/

Name end incorporation Interest Interest Assets Liabilities (Loss) Revenues

% % Rs000 Rs000 Rs000 Rs000

2011

Coal Terminal

(Management)

Co. Ltd December 31, Mauritius - 24.43 32,012 30,282 1,630 48,489

Copesud

(Mauritius) Lte December 31, Mauritius 25.00 - 104,781 98,465 (15,330) 140,937

136,793 128,747 (13,700) 189,426

2010

Coal Terminal

(Management)

Co. Ltd December 31, Mauritius - 24.43 25,946 24,918 869 44,688

Copesud

(Mauritius) Lte December 31, Mauritius 25.00 - 120,119 98,473 (16,638) 111,403

146,065 123,391 (15,769) 156,091

18 INVESTMENT IN FINANCIAL ASSETS

(i) Non-Current


2011 2010 2011 2010

Level 1 Level 2 Level 3 Total Total Level 1 Level 3 Total Total


AVAILABLE-FOR-SALE

At January 1, 81,211 89,253 8,192 178,656 60,944 46,435 7,989 54,424 43,155

Additions - 12 - 12 276 - - - -

Increase/(decrease)

in fair value 947 (7,871) - (6,924) 117,436 2,937 - 2,937 11,269

At December 31, 82,158 81,394 8,192 171,744 178,656 49,372 7,989 57,361 54,424

(ii) Level 3 investments are stated at cost since reliable fair values cannot be obtained. At the reporting date, theDirectors reviewed the carrying amount of investments and in their opinion, there is no objective evidencethat the investments are impaired.



Notes to the


Notes to the


19 BEARER BIOLOGICAL ASSETS


Rs000 Rs000 Rs000 Rs000

COSTAt January 1, 361,421 353,546 281,490 271,459Additions 45,905 42,619 36,320 32,251Write off (47,360) (34,744) (36,719) (22,220)

At December 31, 359,966 361,421 281,091 281,490

AMORTISATION At January 1, 186,239 175,508 147,175 133,858Amortisation 44,798 45,475 34,900 35,537Write off (47,360) (34,744) (36,719) (22,220)

At December 31, 183,677 186,239 145,356 147,175

NET BOOK VALUES 176,289 175,182 135,735 134,315

Bearer biological assets represent cane replantation expenditure that have an expected life cycle of 7 years asthey would normally generate 7 years of crop harvest.

In line with IAS 41 - Agriculture, the replantation costs are deferred and amortised over 7 years.

20 DEFERRED EXPENDITURE


VOLUNTARY RETIREMENT SCHEME COSTS Rs000 Rs000 Rs000 Rs000

COSTAt January 1, 239,410 167,380 207,547 146,506Infrastructure and other social costs 12,830 72,030 12,812 61,041

At December 31, 252,240 239,410 220,359 207,547

AMORTISATIONAt January 1, 150,292 140,629 133,090 124,346Charge for the year 19,998 9,663 17,506 8,744

At December 31, 170,290 150,292 150,596 133,090

CARRYING AMOUNTAt December 31, 81,950 89,118 69,763 74,457

The Voluntary Retirement Scheme costs comprise of compensation payments, provision for land infrastructureand other costs less refunds received from the Sugar Reform Trust (SRT). The net expenses are amortised overa period of 7 years.

21 DEFERRED INCOME TAXES

Deferred income taxes are calculated on all temporary differences under the liability methods at 15% (2010:

15%). Deferred income tax assets and liabilities are offset when the income taxes relate to the same fiscalauthority.

(a) THE GROUP

(i) The following amounts are shown in the statement of financial position: 2011 2010

Rs000 Rs000

Deferred tax liabilities 319,816 475,591Deferred tax assets (220,141) (14,039)

99,675 461,552

Movement in deferred income tax 2011 2010

Rs000 Rs000

At January 1, 461,552 (69,423)Charge to the income statement 59,464 109,477(Credit)/charge to other comprehensive income (421,341) 421,498

At December 31, 99,675 461,552

Deferred tax assets and liabilities, deferred tax movement in the statement of comprehensive income andother comprehensive income are attributable to the following items:

Movement in Movement in statement of other At At January 1, compreh ensive comprehensive December 31, 2011 income income 2011 Rs000 Rs000 Rs000 Rs000

(ii) Deferred income tax liabilitiesBiological assets 20,162 198 - 20,360Accumulated tax depreciation 306,749 25,849 - 332,598VRS costs 11,169 (705) - 10,464Deferred tax on revaluation of land 421,498 - (421,498) -

759,578 25,342 (421,498) 363,422

Deferred income tax assetsTax losses carried forward (277,930) 30,040 - (247,890)Provision for infrastucture costs (6,748) 4,882 - (1,866)Retirement benefit obligations (13,348) (643) - (13,991)

(298,026) 34,279 - (263,747)

Net deferred income tax (asset)/liability 461,552 59,621 (421,498) 99,675



Notes to the


Notes to the


21 DEFERRED INCOME TAXES(Continued)

(b) THE COMPANY 2011 2010

Rs000 Rs000

At January 1, 346,314 4,264Charge to the income statement 6,902 4,595(Credit)/Charge to other comprehensive income (337,455) 337,455

At December 31, 15,761 346,314

Deferred tax assets and liabilities, deferred tax movement in the statement of comprehensive income andother comprehensive income are attributable to the following items:

Movement in Movement in statement of other At At January 1, compreh ensive comprehensive December 31, 2011 income income 2011 Rs000 Rs000 Rs000 Rs000

Deferred income tax liabilitiesBiological assets 20,162 198 - 20,360Accumulated tax depreciation 2,367 350 - 2,717VRS costs 11,169 (705) - 10,464

Deferred tax on revaluation of land 337,455 - (337,455) -

371,153 (157) (337,455) 33,541

Deferred income tax assetsTax losses carried forward (14,856) 3,225 - (11,631)Provision for infrastructure costs (6,748) 4,882 - (1,866)Retirement benefit obligations (3,235) (1,048) - (4,283)

(24,839) 7,059 - (17,780)

Net deferred income tax liability 346,314 6,902 (337,455) 15,761

(c) Cap

omnicane financial statements 2011

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