UBP Annual Report 13

ANNUAL REPORT 2013
Head Ofce: Trianon, Quatre Bornes, Mauritius

Tel: (+230) 454 1964 - Fax: (+230) 454 8043
Email: info@ubpgroup.com - Web: www.ubpgroup.com
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UBP GROUP | ANNUAL REPORT 2013 1
CONTENTS
03 Notice of Annual Meeting to Shareholders
04 Management and Administration
05 Board of Directors and Board Committees
06 Directors and Senior Ofcers Proles
11 Group Shareholding Structure
12 Financial Highlights and Ratios
14 Value Added Statement
15 Chairmans Report
18 Chief Executive Ofcers Report
21 Corporate Governance Report
32 Corporate Social Responsibility (CSR) Report
33 Statement of Directors Responsibilities
34 Other Statutory Disclosures
39 Company Secretarys Certicate
41 Independent Auditors Report to the Members
42 Statements of Financial Position
43 Statements of Comprehensive Income
44 Statements of Changes in Equity
45 Statements of Cash Flows
46 Notes to the Financial Statements
93 Proxy Form
Dear Shareholder,
The Board of Directors is pleased to present to you the Annual
Report of The United Basalt Products Ltd (UBP) for the
year ended June 30, 2013, the contents of which are listed
hereafter.
This report was approved by the Board of Directors on
September 26, 2013.

Marc Freismuth Jean Michel Giraud
Chairman Chief Executive Officer
1. To consider the Annual Report 2013 of the Company.
2. To receive the report of Messrs Ernst & Young, the Auditors of
the Company.
3. To consider and adopt the Companys and the Groups Audited
Financial Statements for the year ended June 30, 2013.
4. T o re-elect as Director of the Company, Mr E. Jean Mamet, aged
70, who offers himself for re-election upon recommendation
from the Corporate Governance Committee, to hold ofce
until the next Annual Meeting in accordance with Section
138(6) of the Companies Act 2001.
5-13 To re-elect as Directors of the Company and by way of separate
resolutions, the following persons who offer themselves for re-
election upon recommendation from the Corporate Governance
Committee, to hold ofce until the next Annual Meeting:
5. Mr Marc Freismuth
6. Mr Francois Boull
7. Mr Jean Michel Giraud
8. Mr Jol Harel
9. Mr Laurent de la Hogue
10. Mr Arnaud Lagesse
11. Mr Stephane Lagesse
12. Mr Thierry Lagesse
13. Mr Jean Claude Maingard
14. To re-appoint Messrs Ernst & Young as Auditors of the Company
for the year ending June 30, 2014 and to authorise the Board of
Directors to x their remuneration.
By order of the Board
Christophe Quevauvilliers
Company Secretary
September 26, 2013
A shareholder of the Company entitled
to attend and vote at this meeting may
appoint a proxy (whether a shareholder
or not) to attend and vote on his/her
behalf. The instrument appointing a proxy
or any general power of attorney shall be
deposited at the registered ofce of the
Company, Trianon, Quatre Bornes, not
less than twenty-four hours before the time
xed for the holding of the meeting or else
the instrument of proxy shall not be treated
as valid.
A proxy form is included for this purpose at
the end of the Annual Report.
For the purpose of this Annual Meeting,
the Directors have resolved, in compliance
with Section 120(3) of the Companies
Act 2001, that the shareholders who are
entitled to receive notice of the meeting
and attend such meeting shall be those
shareholders whose names are registered
in the share register of the Company as at
November 18, 2013.
NOTICE OF
ANNUAL
MEETING TO
SHAREHOLDERS
Notice is hereby given that the Annual Meeting of Shareholders of
The United Basalt Products Ltd will be held at the registered ofce
of the Company, Trianon, Quatre Bornes, on Tuesday December 17,
2013 at 15.00 hours to transact the following business in the manner
required for the passing of Ordinary Resolutions:
MANAGEMENT
AND ADMINISTRATION
Jean Michel Giraud Chief Executive Ofcer
Stephane Ulcoq Deputy CEO and Production Manager
Rmi de Gersigny Project and Business Development Manager
Christophe Quevauvilliers Group Finance Manager and Company Secretary
Denis Lincoln Group Engineering Manager
Caroline Tyack Group Communication and Marketing Manager
Clivy Coutet Chan Chuen Group Human Resources Manager
Fabien Harel Sales Manager
Dhuenesh Rambarassah Financial Controller
Dwight Hamilton Group IT Manager
Jocelyne LArrogant Group Procurement and Logistics Manager
Francis Koenig Quarry and Field Manager
Bernard Lagesse Manager Marbella Division
Raoul Maurel Manager PPB Division
Edley Michaud Personnel Manager
Jean Philippe Henry General Manager Espace Maison Lte
Christopher Blackburn General Manager Compagnie de Gros Cailloux Lte
Jean Claude Bellepeau General Manager Dry Mixed Products Ltd
LEGAL FORM
The United Basalt Products Ltd is a public company incorporated in Mauritius in July 1953
and listed on the Ofcial Market of the Stock Exchange of Mauritius since 1989.
MANAGEMENT TEAM
HEAD OFFICE
Trianon, Quatre Bornes Mauritius
Tel. : (230) 454 1964
Fax : (230) 454 8043
Email : info@ubpgroup.com
Website : www.ubpgroup.com
REGISTERED OFFICE
Trianon, Quatre Bornes Mauritius
COMPANY SECRETARY
Christophe Quevauvilliers F.C.C.A.
AUDITORS
Ernst & Young
BANKERS
AfrAsia Bank Ltd
Barclays Bank Mauritius Ltd
HSBC (Mauritius) Ltd
State Bank of Mauritius Ltd
The Mauritius Commercial Bank Ltd
BOARD
OF DIRECTORS
AND BOARD
COMMITTEES
BOARD OF DIRECTORS
Marc Freismuth - Chairman
Franois Boull
Jean Michel Giraud Chief Executive Ofcer
Jol Harel
Laurent de la Hogue
Arnaud Lagesse
Stephane Lagesse
Thierry Lagesse
Jean Claude Maingard
E. Jean Mamet
BOARD COMMITTEES
CORPORATE GOVERNANCE COMMITTEE
Jol Harel - Chairman
Marc Freismuth
Thierry Lagesse
AUDIT COMMITTEE
E. Jean Mamet - Chairman
Franois Boull
Jol Harel
COMPANY SECRETARY
Christophe Quevauvilliers F.C.C.A.

1. Marc Freismuth
Chairman
Mr Marc Freismuth was appointed
Director of the Company in March
2006 and Chairman of the
Board on August 13, 2013 fur-
ther to the decision of Mr Thierry
Lagesse to step down as Chair-
man. Born in France in 1952,
Mr Freismuth holds a Diplme
dEtudes Suprieures de Sciences
Economiques from the University
of Panthon-Sorbonne (Paris). He
has been lecturer at the University
of Montpellier up to July 1988
when he decided to join the Uni-
versity of Mauritius as lecturer in
management and nance up to
July 1994. Whilst at this position,
Mr Freismuth has contributed to the
setting up of the Stock Exchange
of Mauritius as consultant to the
Stock Exchange Commission and
member of the Listing Committee.
Mr Freismuth is currently self-em-
ployed as consultant in manage-
ment and nance. Member of the
MIOD, he is the Chairman of GML
Management Lte and sits as
independent Director on the Board
of several public companies.
2. Franois Boull
Mr Franois Boull was
appointed alternate Director
to late Mr Jacques Lagesse
in 1998 and full-fledged
Director of the Company in
May 2004. Born in 1948,
Mr Boull holds a degree
from the Institut dEtudes
Politiques de Paris (Sciences
Po Section Economique et
Financire). He is currently
the Managing Director of
Suchem Ltd, a company
specialised in importation
and distribution of industrial
chemicals, textile auxiliaries,
plastic raw-materials, pesti-
cides and sprayers for
agriculture.
3. Jean Michel
Giraud
Chief Executive Ofcer
Mr Jean Michel Giraud joined
the Company in 1974 and
became General Manager
in 1984 succeeding his
father at this position. He
was appointed Managing
Director in November 2004
and Chief Executive Ofcer in
January 2012. Born in 1950,
Mr Giraud is the Chairman of
Dry Mixed Products Ltd and
sits on the Board of several
companies within the Group.
He is an ex-President of the
Mauritius Turf Club and of the
Mauritius Tennis Federation.
DIRECTORS
AND
SENIOR
OFFICERS
PROFILES
DIRECTORS
22222
5. Laurent de la Hogue
Mr Laurent de la Hogue
was appointed Director of
the Company in December
2011. Born in 1975, Mr
de la Hogue holds a Master
degree in Management
and Finance from the Ecole
Suprieure de Gestion et
Finance in Paris, France.
He joined GML in 2001 as
Treasurer for the setting up of
the central treasury unit before
becoming Finance Executive
- Corporate & Treasury for
GML Management Lte in
April 2011. Mr de la Hogue is
actually the Chairman of GML
Trsorerie Lte and Mauritius
St at ioner y Manufact urers
Limited. He is also Director of
a number of companies such
as Abax Holding Ltd, Freight
and Transit Company Ltd, Lux*
Island Resorts Ltd, Axys Leasing
Ltd and Espace Maison Lte.
4. Jol Harel
Mr Jol Harel was appointed
alternate Director to Mr Jean
Raymond Harel in May 2004
and became full-edged Director
of the Company with effect from
July 1, 2006. Born in 1967,
Mr Harel holds a National
Higher Diploma in Mechanical
Engineering from Cape
Technikon in Cape Town. He is
currently the Projects Manager
at Emineo Ltd, a company
involved in the engineering
and the realisation of projects,
locally and overseas, mainly
in the sugar cane sector and
its associated by-products.
Mr Harel is also a Director of
Filature de Riche Terre Lte, a
non-listed company.
11
3333
4444 5555555555
6. Arnaud Lagesse

Mr Arnaud Lagesse was appointed alternate Director to Mr J. Cyril Lagesse in March
1994 and became full-edged Director of the Company on August 25, 2011. Born in
1968, Mr Lagesse holds a Matrise de Gestion from the University of Aix-Marseille
III, France and is a graduate of the Institut Suprieur de Gestion, France. He also
completed an Executive Education Program at INSEAD Fontainebleau, France and
an Advanced Management Program (AMP180) at Harvard Business School, Boston,
USA. Mr Lagesse joined GML in 1995 as Finance and Administrative Director
before becoming its Chief Executive Ofcer in August 2005. He also participated
in the National Corporate Governance Committee as a member of the Board. He
is a member of the Board of several of the countrys major companies and is the
Chairman of Alteo Limited, Ireland Blyth Limited, IOREC Ltd, Lux* Island Resorts Ltd,
AfrAsia Bank Limited, United Investments Ltd inter alia. Mr Lagesse is an ex-President
of the Mauritius Chamber of Agriculture, the Mauritius Sugar Producers Association
and the Sugar Industry Pension Fund. He is also the Chairman of GML Fondation
Joseph Lagesse since July 2012.
7. Stephane Lagesse
Mr Stephane Lagesse was appointed
Director of the Company in
November 2011. Born in 1959, Mr
Lagesse holds a degree in Gestion
des Entreprises from the University
of Parix IX Dauphine. He joined the
Palmar Group in 1983 where he is
currently the Managing Director. Mr
Lagesse participated in the setting
up of two garment manufacturing
companies in Mauritius.
8. Thierry Lagesse
Mr Thierry Lagesse was appointed Director of the Company in December 1989 and subse-
quently Chairman of the Board in December 2002 until August 13, 2013 when he decided to
step down from the Chairmanship of the Company. Born in 1953, Mr Lagesse holds a Matrise
des Sciences de Gestion from the University of Paris Dauphine. He was the Non-Executive
Chairman of GML until recently and is Director of several other companies listed on the Stock
Exchange of Mauritius. He is also the Executive Chairman and founder of Palmar Group of
Companies and the Executive Chairman of Parabole Runion SA. Mr Lagesse is a member of
the Companys Corporate Governance, Nomination and Remuneration Committee.
99 1111100000
10. E. Jean Mamet
Mr E.Jean Mamet was appointed
Director of the Company in November
2004 and is currently the Chairman
of the Audit Committee. Born in
1943, Mr Mamet is a Certied
Accountant and has been in practice
for forty-three years involved in
auditing and consulting services up to
2003 when he retired as Managing
Partner of Ernst & Young Mauritius.
He is currently the Vice Chairman of
The Mauritius Commercial Bank Ltd.
9. Jean Claude Maingard
Mr Jean Claude Maingard was
appointed Director of the Company
in November 2007 in replacement of
Mr Jean Paul Adam. Born in 1946,
Mr Maingard holds a Diploma in
Quantity Surveying from the University
of Cape Town and is a member of the
Royal Institute of Chartered Surveyors
(M.R.I.C.S.). In 1972 he joined Gen-
eral Construction Co.Ltd, a well-known
rm of building and civil engineering
contractors operating in Mauritius. He
was appointed Executive Director in
1986 and was Managing Director from
1998 to 2006. Mr Maingard is since
the Chairman of the company.
777 888
Stphane Ulcoq
Mr Stphane Ulcoq, born in 1977, holds a Diplme
dIngnieur en Mcanique from the Institut National des
Sciences Appliques (INSA) of Rouen, France and an MBA
International Paris from the Paris Dauphine & La Sorbonne
Universities. He also holds a Certicate in Global Management
awarded by INSEAD after having completed 3 Executive
Education Programs at INSEAD Fontainebleau, France and
INSEAD Singapore in 2011 and 2012. Mr Ulcoq joined the
Company as Assistant Works Manager in year 2000 and was
promoted Workshop Manager in 2007. In January 2012,
Mr Ulcoq was promoted to the post of Production Manager
where he is since in charge of all production units, both in
Mauritius and overseas. In addition to his responsibilities as
Production Manager, Mr Ulcoq was appointed Deputy CEO
by the Board of Directors in December 2012.
Rmi de Gersigny
Mr Rmi de Gersigny, born in 1953, joined the Company
as supervisor in 1978 and was promoted to the post of
Plant Manager in 1981. In the early nineties, he was
appointed Area Manager of the western and central regions
where he was in charge of three crushing plants. In 2004,
Mr de Gersigny was promoted to the post of Operations and
Project Manager where he was in charge of all operational
matters for our plants in Mauritius and overseas. In January
2012, he was promoted to the post of Project and Business
Development Manager.
Mr Christophe Quevauvilliers, born in 1968, is a Fellow
member of the Association of Chartered Certied
Accountants. He joined the Company as Finance Manager
and Company Secretary in May 2002 after having spent
ten years in public practice at De Chazal Du Me and four
years in the industrial sector. Mr Quevauvilliers sits on the
Board of several companies within the Group.
Denis Lincoln
Mr Denis Lincoln, born in 1963, holds a N.D. in Clay
Technology / Mechanical Engineering from the Natal
Technikon, (SA), a Diploma in Business Management (UK)
and an MBA from Surrey University (UK). He joined the
Company as Works Manager (Machinery Dept.) in 1991,
after having spent six years in the sugar and engineering
industries. In 2004, Mr Lincoln was promoted to the post
of Area Manager of the central and western regions where
he was in charge of four production units. In January 2012,
Mr Lincoln was promoted to the post of Group Engineering
Manager where he is since responsible for all engineering
services, supplies and projects, both in Mauritius and
overseas.
Caroline Tyack
Mrs Caroline Tyack, born in 1979, holds a Diplme
dEtudes Approfondies (DEA) en Veilles et Intelligence
Comptitive from the Universit Paul Valry, Montpellier,
France. She joined the Company as Communication
Manager in January 2005 after having followed a crash
course in Administration et Gestion du Personnel at CNAM
(Conservatoire National des Arts et Mtiers) at Montpellier,
France. In November 2006, Mrs Tyack was promoted to
the post of Group Communication and Marketing Manager
where she is since responsible for all communication
and marketing matters relevant to the Group. She is also
responsible for developing the CSR strategies of the Group.
Clivy Coutet Chan Chuen
Mrs Clivy Coutet Chan Chuen, born in 1970, holds an
Msc in Human Resources Management from the University
of Surrey. She is also an afliate member of CIPD and an
MQA trainer. She joined the Company as Group Human
Resources Manager in February 2009 after having served
Iframac Company Limited, a company forming part of the
British American Investment Group, for twenty three years as
Divisional Human Resources Manager and Assistant Vice-
President Human Resources.
Fabien Harel
Mr Fabien Harel, born in 1981, holds a Maitrise en Science
Economique et Sociale from the University of Toulouse 1
and an MBA International de Paris from the Paris Dauphine
& La Sorbonne Universities. He joined the Group in August
2005 as Shop Manager of Espace Maison Lte. In 2009
he moved to UBP as Property Development Manager until
July 2011 when he was appointed Area Manager of the
northern region in charge of two crushing plants and one
sales dpt. In 2012 he was promoted to the post of Sales
Manager where he is since responsible for the sales strategy
and customer care of the core business activities whilst still
being in charge of all properties within the Group.
Dhuenesh Rambarassah
Mr Dhuenesh Rambarassah, born in 1976, is a Fellow
member of the Association of Chartered Certied
Accountants and holder of an MBA with a specialisation
in strategic planning from Edinburg Business School of
Scotland. He joined the Company as Financial Accountant
in February 2006 after having spent more than eight years
successively in the Audit and Assurance department of Ernst
& Young and De Chazal Du Me where he was involved in
the audit of several of the major companies in Mauritius.
In July 2013, Mr Rambarassah was designated Financial
Controller of the majority of companies within the Group.
DIRECTORS AND SENIOR OFFICERS PROFILES (Contd)
SENIOR OFFICERS
Dwight Hamilton
Mr Dwight Hamilton, born in 1974, holds a Professional
Graduate Diploma in Information Technology (National
Council for Vocational Qualication, NCVQ). He joined
the Company as Systems Coordinator in year 2004 where
he was responsible for the implementation of the ERP for
the Group. In 2011, he was promoted to the post of IT
Manager for the Group.
Jocelyne LArrogant
Ms Jocelyne LArrogant, born in 1969, holds a diploma in
Management (Financial Management) from the University of
Mauritius. She joined the Company as Accounts Ofcer in
1989 and was given the responsibility of the Import & Logistic
department of Espace Maison Lte and the Procurement
department of the UBP Group in 2002. Ms LArrogant was
promoted to the post of Group Logistic & Procurement Manager
in 2011.
Francis Koenig
Mr Francis Koenig, born in 1957, joined the Company in
1981 and was in charge of Stone Utilities Ltd. In 1981, he
was promoted to the post of Plant Manager for Terre Rouge,
Roche Bois and Coromandel plants. After two years at this
position, he was promoted to the post of Area Manager
for the northern region until 1991 where he moved to the
southern region. In February 2012, he was promoted to
the post of Quarry and Field Manager where he is now in
charge of our Land Reclamation Unit involved in quarrying
operations and the supply of raw-materials to the majority of
our production sites.
Bernard Lagesse
Mr Bernard Lagesse, born in 1951, joined the Company in
1984 as Maintenance Ofcer in charge of all the buildings
of the Company. In 1985, he was promoted to the post
of Manager of Marbella Ltd, a company engaged in the
import and sale of marble and ceramic tiles. In July 1995,
Mr Lagesse was appointed Manager of UBP - Marbella
Division where he is since responsible of all the production of
precast products, concrete pipes and of our marble factory.
Raoul Maurel
Mr Raoul Maurel, born in 1948, holds a Diploma in Civil
Engineering from the Natal Technikon (S.A) and is a member
of the S.A Institute of Civil Engineers. He also holds a Diploma
in Business Management and has been an afliate member of
the S.A Institute of Management. During his career he worked
in civil engineering consulting rms both in South Africa and
Mauritius, where he joined Sigma Ove Arup in 1974. In 1982
he joined Pre-mixed Concrete Ltd as Manager before leaving
for South Africa where he joined the LTA group, as manager
of Steeledale FBE, launching the Natal branch specializing
in the manufacture of precast beam decking systems. Back in
Mauritius in 1989, he created his own company selling precast
beam decking systems in close collaboration with UBP which
he consequently joined as Manager of the PPB Division since its
inception in 1990. Mr Maurel is presently director of the Green
Building Council of Mauritius (GBCM), a non-prot organization
aiming for the promotion of sustainable building technologies.
Edley Michaud
Mr Edley Michaud, born in 1951, holds a Certicate in
Personnel Management and Industrial Relations, a Diploma
in Occupational Safety & Health from the National College
of Industrial Hygiene (Australia) and is a Fellow of the British
Safety Council. He is also a registered Safety Ofcer under the
Occupational Safety & Health Act. He joined the Company
as Production Supervisor in 1973 and became Personnel
Manager in July 1987. Mr Michaud is closely involved in all
safety and health regulations within the Group.
Jean Philippe Henry
Mr Jean Philippe Henry, born in 1973, holds a National
Diploma in Management from the Natal Technikon Institute,
South-Africa and is a graduate of the Chartered Institute of
Secretaries (CIS). Between 1998 and 2002, Mr Henry was
employed successively at Price Waterhouse Coopers Ltd,
World Knits Ltd and Naade Resorts Ltd. He joined Espace
Maison Lte as Assistant Shop Manager in 2003 and was
promoted Purchasing Manager in 2005 and thereafter
General Manager in 2009.
Christopher Blackburn
Mr Christopher Blackburn, born in 1969, holds a Brevet de
Technicien Agricole with a specialisation in Jardin Espace
Vert (France) and a Diploma in Marketing from Australia.
He is actually completing a Bcom Management & Marketing
from Curtin University, Australia. Mr Blackburn worked as
General Manager of the Landscaping & Nursery department
at Mdine Ltd before joining the Group as General Manager
of Compagnie de Gros Cailloux Lte in May 2012.
Jean Claude Bellepeau
Mr Jean Claude Bellepeau, born in 1963, holds a Diplme
dIngnieur Chimiste from EHICS, Strasbourg, France. After
having spent 10 years in the textile and industrial chemicals in
Mauritius, he joined the Lafarge Group to launch the cement
terminal in Mayotte. He then joined Pre-mixed Concrete Ltd
as Operations Manager in 2003 and was promoted General
Manager of Pre-mixed Concrete Ltd and Dry Mixed Products
Ltd in 2008. In 2011, further to the reorganisation of the two
companies, Mr Bellepeau directed the integration of Dry Mixed
Products Ltd into the UBP Group and is henceforth the General
Manager of the company.
GROUP
SHAREHOLDING
STRUCTURE
100% Espace Maison Lte
100% Compagnie de Gros Cailloux Lte
100% Socit dinvestissement Rodriguais
75.9% Welcome Industries Ltd
100% UBP International Ltd
100% UBP Madagascar
77% United Granite Product (Pvt) Ltd
100% DHK Metal Crusher (Pvt) Ltd
100% Sheffield Trading (Pvt) Ltd
76.5% Ste Marie Crushing Plant Ltd
100% Socit des Petits Cailloux
51% Dry Mixed Products Ltd
100% Marbella Ltd
100% Land Reclamation Ltd
100% Stone and Bricks Co. Ltd
100% The Stone Masters Co. Ltd
100% Pricom Ltd
Operational Dormant
* Via UBP International Ltd
THE UNITED BASALT PRODUCT LTD
SUBSIDIARIES
46% Terrarock Ltd
34% Prochimad Mines et Carrires SARL*
49% Pre-mixed Concrete Ltd
25% Sud Concassage Lte
25% Cement Transport Ltd
20% Compagnie Mauricienne DEntreprise Lte
30% Compagnie des Transport Runis
THE UNITED BASALT PRODUCTS LTD
ASSOCIATES
Note: Figures at Net Assets Value Per Share, Shareholders Equity and Earnings Per Share for years 2009 and
2010 have been adjusted to reect the bonus issue of shares dated September 2010.
FINANCIAL HIGHLIGHTS
AND RATIOS
Rs
120
100
80
60
40
20
0
2009 2010 2011 2012 2013
6
4
.
8
6
7
0
.
7
6
7
2
.
3
2
1
0
7
.
8
4
1
1
1
.
1
2
NET ASSETS VALUE
PER SHARE
Rs000
3,000.00
2,500.00
2,000.00
1,800.00
1,600.00
1,200.00
1,000.00
800.00
600.00
0
2009 2010 2011 2012 2013
SHAREHOLDERS
EQUITY
1
,
7
1
9
,
4
5
2
1
,
8
7
5
,
9
3
0
1
,
9
1
7
,
2
8
3
2
,
8
5
8
,
7
4
6
2
,
9
4
5
,
8
4
6
Rs
140
120
100
80
60
40
20
0
2009 2010 2011 2012 2013
5
3
1
2
3
1
3
5
1
0
8
9
8
SHARE PRICE
Rs
3.00
2.50
2.00
1.50
1.00
0.50
0
2009 2010 2011 2012 2013
2
.
6
0
2
.
7
5
2
.
7
5
2
.
7
5
3
.
0
0
DIVIDEND PER SHARE
Statement of Financial Position
THE GROUP
2013 2012
Rs 000 Rs 000
Total assets 4,543,137 4,551,084
Interest-bearing loans and
borrowings
1,024,227 1,163,812
Borrowings excluding bank
overdrafts
779,201 931,079
Equity attributable to shareholders
of the parent
2,945,846 2,858,746
Rs Rs
Net assets value per share 111.12 107.84
Financial Ratios
Operating margin - % 10.50 10.64
Interest cover - times 3.36 3.03
Dividend cover - times 2.02 2.05
Return on equity - % 5.46 5.23
Return on assets - % 3.54 3.29
Debt to equity - times 0.34 0.40
Statement of Comprehensive Income
THE GROUP
2013 2012
Rs 000 Rs 000
Revenue 2,443,424 2,580,449
EBITDA 472,827 468,533
Depreciation and amortisation (216,369) (193,901)
Operating prot 256,458 274,632
Net nance costs (70,694) (76,831)
Share of results of associates 36,092 6,084
Prot before tax 221,856 203,885
Income tax expense (43,685) (32,751)
Prot for the year 178,171 171,134
Non-controlling interests (17,412) (21,508)
Prot for the year attributable to
equity holders of the parent
160,759 149,626
Rs Rs
Earnings per share
Basic , prot for the year attributable
to ordinary equity holders of the
parent.
6.06 5.64
Dividend per share 3.00 2.75
Rs
10
9
8
7
6
5
4
3
2
1
0
2009 2010 2011 2012 2013
EARNINGS PER SHARE
5.63
8.94 8.94
5.64
6.06
Rs000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2009 2010 2011 2012 2013
REVENUE
2013 2012
Rs 000 Rs 000
Sale of goods and services 2,443,424 2,580,449
Paid to suppliers for materials and services (1,577,253) (1,818,522)
Value added 866,171 761,927
Other operating income 69,973 101,638
Total wealth created 936,144 863,565
Distributed as follows:
Employees
Salaries and other benets 408,904 365,001
Providers of capital
Dividend 79,530 72,905
Interest paid on borrowings 75,527 84,107
Dividend to non-controlling interests 18,550 24,850
173,607 181,862
Government and parastatal
corporations
Income tax (current and deferred) 43,685 32,751
Environment protection fee 9,660 11,023
Licences and permits 2,690 2,306
56,035 46,080
Reinvested in the Group to
maintain and develop operations
Depreciation, amortisation and impairment 216,369 193,901
Retained prot 81,229 76,721
297,598 270,622
Total wealth distributed and
retained
936,144 863,565
VALUE ADDED
STATEMENT
44 %
Employees
6 %
CovernmenL and parasLaLal corporauons
18 %
32 %
Reinvested in the group
43 %
Employees
5 %
CovernmenL and parasLaLal corporauons
21 %
31 %
Reinvested in the group
JUNE 30, 2013
JUNE 30, 2012
CHAIRMANS
REPORT
Dear Shareholder,
As newly-appointed Chairman, I am pleased to present to
you the Annual Report of The United Basalt Products Ltd
(UBP) and of the Group for the year ended June 30, 2013
and to comment on the achieved performance.
1953 2013 : 60 YEARS OF GROWTH
STRATEGY
This year UBP celebrates its 60th anniversary. The Company
was incorporated in 1953 following the merger of three
companies and has over the years developed itself to become
an unavoidable component of todays construction industry
and one of the major actors of the Mauritian economic
scene. As pioneer in its eld of activity, the Company has
been since its creation involved in most major infrastructure
and building projects of the country and has played an
important role in the derocking of thousands of hectares of
land to the benet of agriculture. This development has over
the years enabled the Group to extend its activities in the
region with the setting up of crushing plants in Rodrigues,
Madagascar and Sri Lanka.
Always innovating, the Group has introduced onto the
market various locally-made concrete-building products
such as precast slabs, roof tiles, concrete pipes, paving-
blocks, concrete kerbs and rustic pavements as well as pre-
mixed concrete and ready-to-use dry mortar in partnership
with other companies. Since the late nineties, the Group
has invested massively in appropriate machinery for the
production of rocksand in anticipation to the Governments
policy to cease the extraction of coral sand from the sea,
thereby preserving the environment. As from year 2002 and
after having commercialised for many years sanitary wares,
marble and ceramic tiles, the Group decided to extend its
activities through the setting up of Espace Maison stores
which today offers a wide range of home-building products,
tools and decorative components as well as green plants
and garden accessories via four stores located in Trianon,
Tamarin, Forbach and Flacq. In 2004, UBP acquired 100%
of Compagnie de Gros Cailloux Lte, a company whose
principal activity consists of sugar cane cultivation within
some 1,000 acres of land situated at Gros Cailloux, Petite
Rivire. Since then, a nursery was created in order to
supply the garden sections of Espace Maison stores whilst
a landscaping division was set up in 2008. Furthermore,
in March 2010, UBP increased its stake from 30% to 51%
in Dry Mixed Products Ltd, a company engaged in the
manufacture of ready-to-use dry mortar whilst at the same
time increasing its shareholding in Pre-mixed Concrete Ltd
from 30% to 49%.
These achievements have contributed to the growth of the Group over the years as shown by the gures in the table below
which relate to the last ten years:
June 30, 2003 June 30, 2013 Progression
Rs Million Rs Million %
Revenue 900.1 2,443.4 +171.4
Total assets 1,028.8 4,543.1 +341.6
Equity attributable to shareholders of the parent 683.3 2,945.8 +331.1
Rs Rs %
Net Assets Value per share Restated for the number of shares in issue 25.77 111.12 +331.1
Share price Restated for the bonus issue in 2003 and 2010 28.67 98.00 +241.8
Note : Our land and buildings were revalued in 2012.

Such a progress stems from the strategic decisions detailed above and also from more recent decisions such as increasing
our proximity to customers via the creation of sales depots and the modernisation of our production units into upgraded
and centralised plants.
2012-2013 FINANCIAL PERFORMANCE
During the nancial year 2012-2013, the Groups revenue dropped by 5.3% to Rs 2.4 billion. Our core business
revenue locally was affected by a drop in project sales whilst overseas our performance was below expectations due
to operational problems arising in Sri Lanka. Similarly, the revenue from our retailing operations was down by 3.9%
compared to previous year due to the difcult market conditions prevailing in that segment of activities.
Despite this drop in Group revenue and signicant operating losses incurred by our retailing and agricultural segments,
the Groups prot for the year under review rose by 4.1% to Rs 178.2 million due to an improved performance of our
local core business operations. Our share of results from associate companies likewise increased by Rs 30.0 million
during the year.
EPS and DPS rose by 7.4% and 9.1% to Rs 6.06 per share and Rs 3.00 per share respectively whilst our share price
dropped from Rs 108.00 at June 30, 2012 to Rs 98.00 at this year end.
The Groups nancial position remains strong with an improved debt to equity ratio of 0.34 times whilst the Company is
in the process of restructuring its existing debts through a Rs 1 billion Bond Programme with a rst tranche of Rs 560.0
million due to be completed by the beginning of November.

OUTLOOK
The nancial year 2013-2014 will be challenging in many respects given the difcult and uncertain economic conditions
prevailing in the country. However, the Board of Directors is committed to pursue the Groups development plan and
improve on performance through synergies and cost control policies with a special focus on our retailing and agricultural
segments locally and on our overseas operations in Sri Lanka.
CHAIRMANS REPORT (Contd)
ACKNOWLEDGEMENTS
On May 14 this year, Mr Jean Giraud passed away
at the age of 94 years old. Mr Giraud was one of
the founder members of the Company in 1953 and
acted as General Manager since its creation up to
1984 when Mr Jean-Michel Giraud, our actual Chief
Executive Ofcer, was appointed to succeed him. I
wish here, in my own name and on behalf of the
Board of Directors and of all the staff, to pay tribute
to this man of great value and vision for all what
he has done for the Group over the years up to his
retirement as General Manager and even thereafter
as a member of the Board of Directors up to 2008.
On behalf of the Board of Directors, I wish to express
my appreciation to the Chief Executive Ofcer, his
management team and the personnel at large for
their hard work and commitment during the year
under review.
Finally, I also wish to thank the members of the Board
of Directors for their guidance and input towards
the proper conduct of the Companys affairs during
the year under review and look forward to their
continued support as newly-appointed Chairman of
the Company.
Marc Freismuth
Chairman
September 26, 2013
CHIEF EXECUTIVE
OFFICERS REPORT
Dear Shareholder,
I am pleased to report to you on the operational results
and nancial performance of The United Basalt Products
Ltd (UBP) and of the Group for the year ended June 30,
2013 and to give you an insight of our present and future
development projects.
OPERATIONAL REVIEW
Revenue and results from operations
The Groups revenue for the nancial year ended June
30, 2013 dropped by 5.3% to Rs 2.4 billion whilst
the Groups operating prot decreased from Rs 274.6
million in 2012 to Rs 256.5 million this year. The Groups
core business sales volumes dropped moderately and
were partly compensated by a slight increase in our
average selling price caused by favourable changes
in our sales mix. At Company level, the revenue for
the year under review dropped by a slight 1.5% whilst
the operating prot increased by 8.1% from Rs 225.6
million in 2012 to Rs 243.9 million this year, thereby
denoting an increase from 15.6% to 17.1% of revenue.
This increase was attributable mainly to a drop in the
cost of production and synergies resulting from the
upgrading and centralisation of our core business
production plants despite a signicant increase
in plant depreciation. Our subsidiary companies
Welcome Industries Ltd operating in Rodrigues and Ste
Marie Crushing Plant Ltd both experienced a drop in
activity level and operating performance due to the
absence of major projects whilst Dry Mixed Products
Ltd experienced a rise of 7.0% in revenue and an
increase of 10.6% in operating prot after accounting
for a major increase in employee benet liability. The
business prospects for dry mortar locally remain good
whilst the export market potential is still below our
expectations and needs a signicant boost.
In terms of our overseas core business operations, our
subsidiary company in Madagascar experienced a
signicant rise of nearly 50.0% in revenue and ended
up with an operating prot of Rs 13.1 million, a major
turnaround from 2012 where the operating results
denoted a loss of Rs 21.6 million due to adverse trading
conditions and a major stock valuation adjustment of
Rs 10.8 million. In Sri Lanka however, our subsidiary
experienced a substantial loss in market share resulting
from the effects of a three months stop order received in
July 2012 due to administrative reasons. Consequently,
our subsidiarys revenue dropped by 72.1% whilst
its operating results for the year denoted a loss of Rs
9.0 million compared to an operating prot of Rs 4.6
million in previous year.
In terms of our retailing operations, the revenue of
Espace Maison Lte for the year under review dropped
by 3.9% to Rs 705.9 million whilst the operating
performance dropped from an operating prot of Rs
4.8 million in 2012 to an operating loss of Rs 13.4
million this year. This downturn was due to the difcult
and highly competitive conditions prevailing in this
market segment, a signicant drop in project sales, an
increase in operating and marketing expenses, major
stock adjustments, doubtful debts and slow-moving
stocks provisioning.
In terms of our agricultural operations, the revenue of
Compagnie de Gros Cailloux Lte was down by 25.0%
compared to previous year due to a major drop in
our sugar and landscaping revenues. The sugar crop
tonnage was signicantly lower than in 2012 with
a total of 1,172 tons of sugar (2012 : 1,704 tons
31.2% drop) whilst the price increased from Rs 16,020
per ton in 2012 to Rs 17,364 per ton this year (+8.4%).
Consequently, the operating loss increased from Rs
10.6 million in 2012 to Rs 27.1 million for the year
under review which was also attributable to an increase
in estate operating and administrative expenses.
Our share of results from associate companies, net
of tax, increased signicantly from Rs 6.1 million in
previous year to Rs 36.1 million this year due to the
improved performance of Pre-mixed Concrete Ltd which
was positively affected by a reduction in employee
benet liability and to an exceptional dividend income
received by our associate Compagnie Mauricienne
dEntreprises Lte, a company with a mixed portfolio of
properties and shares.
Finance income and nance costs
The Groups nance income dropped from Rs 7.3 million
in 2012 to Rs 4.8 million this year whilst at Company level
the same trend was noted due to lower dividend income
and management fees received from subsidiaries and
associates. In terms of nance costs, an appreciable
drop was noted both at Group and Company levels
due to the reduction of our borrowings, the slight drop
in interest rates and our improved cash ow situation
resulting from the lower capital expenditure for the year
under review compared to previous year.
EPS and DPS
The Groups prot for the year increased from Rs 171.1
million in 2012 to Rs 178.2 million this year. Likewise,
the Groups prot for the year attributable to equity
holders of the parent increased from Rs 149.6 million
to Rs 160.8 million. Consequently, the Groups Earnings
Per Share (EPS) increased from Rs 5.64 in previous year
to Rs 6.06 for the year under review.
On May 14, 2013, an increased Dividend Per
Share(DPS) of Rs 3.00 (2012 : Rs 2.75 per share) was
declared by the Company in respect of the nancial year
ended on June 30, 2013 and paid in full on June 25,
2013.
STATEMENT OF FINANCIAL POSITION
The Groups nancial position improved marginally
during the year under review. The Groups total assets
remained almost the same at Rs 4.5 billion, total
liabilities dropped by Rs 99.2 million to Rs 1.5 billion
whilst the equity attributable to shareholders of the
parent increased by Rs 87.1 million to Rs 2.9 billion.
Total borrowings decreased by Rs 139.6 million to just
over Rs 1.0 billion whilst there was no new long-term
loan contracted during the year. The debt to equity
ratio improved from 0.40 times in 2012 to 0.34 times
this year whilst the Net Assets Value (NAV) per share
increased from Rs 107.84 at June 30, 2012 to Rs
111.12 this year.
During the year under review, the Board of Directors
of the Company decided to consider the setting up of
a ve-year Bond Programme for a total amount of Rs
1 billion to be issued in several tranches by way of a
private placement to be listed on the Stock Exchange
of Mauritius (SEM). The rationale behind the Bond
Programme is the re-structuring of the Companys
existing debts, including the repayment of the short term
unsecured loans and part of the facilities with various
banking institutions, to reduce our nance costs and to
raise up funds to nance our future capital expenditure
needs. At the time of writing, our application for listing
of the Bonds have just been approved by the Listing
Executive Committee of the SEM and the process for a
rst tranche of Rs 560.0 million is due to be completed
by the beginning of November.
The Groups total investment in property, plant and
equipment for the year under review amounted to Rs
150.4 million compared to Rs 368.3 million in 2012
and Rs 339.6 million in 2011, and was nanced without
extra borrowings. Besides the normal recurring capital
expenditure aimed at the replacement of existing assets,
a major part of the Groups capital expenditure for the
year was spent on new development projects as detailed
thereafter.
The other major movements in the Groups Statement of
Financial Position comprised of an increase of Rs 49.7
million in inventories, a decrease of Rs 41.0 million in
trade and other receivables, an increase of Rs 15.7
million in trade and other payables and an increase
of Rs 20.9 million in employee benet liability due to
the rst-time accounting of a liability by our subsidiary
Dry Mixed Products Ltd and to a change in actuarial
assumptions in respect of the discount rate principally.
The cash and cash equivalent for the year under review
decreased by Rs 7.2 million (2012 : Rs 2.1 million
increase). Besides our investment in property, plant and
equipment, the other major group cash outows made
during the year comprised of the servicing of loans and
leases, the nancing of overseas subsidiaries and the
payment of dividends.
DEVELOPMENT PROJECTS
In terms of our core business operations, the major
development project during the year was the completion
of the expansion of our plant at St Julien. Consequently,
this plant has an increased production capacity and
becomes one of our four major crushing plants situated
at strategic locations on the island. Besides this major
project, the other developments comprised of the
installation of a second crushing plant for our subsidiary
CHIEF EXECUTIVE OFFICERS REPORT (Contd)
in Sri Lanka which is still in progress, the acquisition
of equipments to increase our quarrying capacity in
Rodrigues and the automation of part of the production
process at Dry Mixed Products Ltd.
Our capital expenditure budget for the nancial year
2013-2014 provides for the construction of a complete
plant aimed at drying ne production dust to be used in the
manufacture of a new blend of cement used as mortar for
construction purposes, further improvements to the ofces
and the access road to our plant at St Julien, the installation
of new electrical devices aimed at minimising energy
consumption on our plants generally, the acquisition of a
new equipment to produce decorative bricks and stones,
the acquisition of new additives towers for our dry mortar
production unit and the purchase of additional equipments
to increase our own quarrying divisions capacity.
In terms of our retailing Espace Maison operations, the
major development during the year under review consisted
of the implementation of a new fully-integrated IT software
(ERP) which is due to be up and running in October.
Besides this project, the capital expenditure budget for the
nancial year 2013-2014 provides for the construction of
a mezzanine at our shop in Trianon and at our warehouse
in Roche Bois, improvements to our warehouse and yard at
Terre Rouge and further IT equipments aimed at improving
the service to our customers.
In terms of our subsidiary Compagnie de Gros Cailloux
Lte, there was no major development during the year
under review. However, the capital expenditure budget
for nancial year 2013-2014 provides for the construction
of a new garden centre, the setting up of an irrigation
system for a new vegetable-growing project and the
mechanisation of the sugar crop harvest, a project due
to span over six years and aimed at making our sugar
activity marginally protable over time. In terms of our
property development plan, the demand for our rst land
parcelling project was negligible due to size and price
reasons. Consequently, our subsidiarys Board of Directors
has decided to advert the sale of the total identied plot in
one lot with the necessary conversion rights.
The total capital expenditure budget for the nancial
year 2013-2014 is higher than that of 2012-2013 but
should not give rise to extra borrowings thereby pursuing
our debt reduction strategy which coupled with our Bond
Programme should reduce our nance costs and our
exposure to risks which is a good initiative in times of
uncertain economic conditions.
FUTURE PROSPECTS
The recently published indicators denote an economic
growth rate forecast of 3.2% for 2013 compared to 3.4%
realised in 2012. However, the mood in terms of business
opportunities is not at its best which means that the coming
nancial year will be another challenging one.
Our core business revenue trend since July 2013 shows
a drop compared to the same period in 2012. The
achievement of our Groups performance forecast for the
nancial year 2013-2014 is highly dependent on the
prevailing economic climate which in turn depends on the
economic measures taken by the Government to promote
and assist various sectors of our economy. Such conditions,
if prevailing, should favour investments in property
development projects and boost up the private dwellings
market which if combined with public infrastructure
projects should promote the construction industry going
forward. In terms of overseas operations, the net result
of our subsidiary in Madagascar is forecasted at a lower
level than in 2012-2013 due to a lack of visibility caused
by the future presidential elections whilst in Sri Lanka
the management is working towards an improvement in
performance for the nancial year 2013-2014.
APPRECIATION
I wish to thank the members of the Board of Directors for
their guidance and support during the past nancial year.
I also wish to express my appreciation to the management
team and the personnel at large for their restless efforts
and dedication towards the progress of the Group during
the year under review.
Jean Michel Giraud
Chief Executive Ofcer
September 26, 2013
CORPORATE
GOVERNANCE
REPORT
Statement of Compliance
(as per Section 75(3) of the Financial Reporting Act)
The Board of Directors of The United Basalt Products Ltd
conrms that to the best of their knowledge the Company
has complied with all its obligations and requirements under
the Code of Corporate Governance for the year ended
June 30, 2013 except for Sections 2.2 and 2.8 of the
Code. The reasons for non-compliance to these sections are
included under the relevant headings in the following pages
of this report.
On behalf of the Board
Chairman Chief Executive Ofcer
September 26, 2013
CORPORATE GOVERNANCE REPORT (Contd)
The United Basalt Products Ltd was incorporated as a
public company in July 1953. The shares of the Company
are listed on the Ofcial Market of the Stock Exchange of
Mauritius since 1989.
The Board of Directors acknowledges that the Code of
Corporate Governance (the Code) sets out the best
practices in terms of corporate governance and this report
describes how the main corporate governance principles
have been applied within the Company.
Companys Constitution
The shareholders adopted a new Constitution in 2004
which complies with the provisions of The Companies Act
2001 and those of the Listing Rules of the Stock Exchange
of Mauritius.
Its salient features are as follows:
the Company has full capacity to carry on and/or
undertake any business activity;
the Company has full rights, powers and privileges;
the Company may acquire and hold its own shares;
fully paid up shares are transferable without restriction;
the quorum for a meeting of shareholders is 6 share-
holders present or represented and holding at least
35% of the share capital of the Company;
the Board of Directors shall consist of not less than 7 or
not more than 15 Directors;
the quorum for a Board meeting is 4 Directors when the
Board consists of 7 members and 5 Directors when the
Board consists of more than 7 members;
the Chairman has a casting vote in case of equality
of votes at either a Board meeting or a shareholders
meeting;
the Directors have the power to appoint any person
to be a Director, either to ll a casual vacancy or as
an addition to the existing Directors but so that the
total number of Directors does not at any time exceed
the number xed by the Constitution. Any Director so
appointed shall hold ofce only until the next following
Annual Meeting of shareholders and shall then be
eligible for re-election;
a Director is not required to hold shares in the Company;
the Company may indemnify and/or insure any Director
or employee of the Company or a related corporation.
Shareholding Structure
The shareholding structure of the Group at June 30,
2013 is as detailed on page 11. The share capital of
the Company amounts to Rs. 265,100,420 made up of
26,510,042 ordinary shares of no par value.
The Company has as Holding Company GML Investisse-
ment Lte, incorporated in Mauritius.
The list of common Directors with the shareholder
companies holding more than 5% of the share capital of
the Company at June 30, 2013 was as follows :
Directors UBP GML
Investissement
Lte
Forward
Investment and
Development
Enterprises Ltd
Thierry
Lagesse

Arnaud
Lagesse

*
*
: Chairman
Substantial Shareholders
Shareholders holding more than 5% of the share capital
of the Company at June 30, 2013 were as follows:
Shareholders Number of
shares
% Holding
GML Investissement Lte 7,764,839 29.29
Forward Investment and
Development Enterprises Ltd
2,636,781 9.95
Shareholding Prole
The share ownership and categories of shareholders at June 30, 2013 were as follows:
Size of shareholding Number of shareholders Number of shares owned Percentage
(%)
1 - 500 844 135,283 0.51
501 1,000 267 197,537 0.74
1,001 5,000 593 1,440,693 5.44
5,001 10,000 172 1,216,925 4.59
10,001 50,000 192 3,825,392 14.43
50,001 100,000 26 1,819,093 6.86
100,001 250,000 16 2,646,678 9.98
250,001 1,000,000 8 3,602,216 13.59
Over 1,000,000 3 11,626,225 43.86
Total 2,121 26,510,042 100.00
Category of shareholders Number of shareholders Number of shares owned Percentage
(%)
Individuals 1,853 7,622,221 28.75
Insurance and assurance
companies
26 2,730,344 10.30
Pension and provident funds 52 2,925,071 11.03
Investment and trust companies 43 11,057,359 41.71
Other corporate bodies 147 2,175,047 8.21
Total 2,121 26,510,042 100.00
Shareholders Agreement
There is no shareholders agreement to the knowledge of
the Company.
Annual Meeting of Shareholders
The Companys Annual Meeting is the main forum where
the shareholders exercise their rights to decide on the
Companys affairs. Shareholders are encouraged to
attend the meeting to stay informed about the Groups
strategy and objectives. A number of Directors and Board
Committee members are normally present to answer any
question relevant to the Companys affairs.
Besides the Annual Meeting, the shareholders are
regularly informed of any relevant information
concerning the Company and the Group such that they
are able to take decisions in full awareness of their
implications. These communications are made either by
announcements in the press, the publication of quarterly
interim Abridged Group Financial Statements and
disclosures in the Annual Report.
Shareholders Calendar of Events
Further to the nancial year end in June, the calendar of
key events is as follows :
September : Publication of audited abridged year
end results to June 30
November : Annual Meeting of shareholders
: Publication of unaudited abridged rst
quarter results to September 30
February : Publication of unaudited abridged half-
year results to December 31
May : Publication of unaudited abridged third
quarter results to March 31
: Declaration of dividend
June : Payment of dividend
The Annual Meeting of shareholders will be held exceptionally in
December this year.
Share Price Information
Please refer to Financial Highlights and Ratios on page
12 for indicators and share price movements at June 30,
2013.
At the time of writing the share of the Company is quoted
at Rs 94.00 on the Ofcial Market of the Stock Exchange
of Mauritius compared to Rs 103.00 on September 27,
2012, date of the preceding Annual Report. The Price
Earnings Ratio (PER) is at 16.67, the Dividend Yield at
3.19 % and the Price to Net Assets Value (NAV) at 0.87.
Dividend Policy
The Company has no formal set dividend policy. The
payment of dividend is subject to the Companys
performance and future growth opportunities, its cash
ow position, its capital expenditure and debt servicing
requirements as well as its future investment needs. In
so doing, the Board of Directors attempts to distribute
a yearly dividend which, under normal circumstances,
should remain sustainable in the medium to long term.
On May 14, 2013, the Company declared a dividend of Rs
3.00 per share in respect of the nancial year 2012-2013.
This dividend was paid on June 25, 2013 to all ordinary
shareholders registered at close of business on May 31, 2013.
Please refer to Financial Highlights and Ratios on page
12 for a summary of the dividend paid per ordinary share
over the past ve years.
Board of Directors
The Board of Directors as a whole is ultimately responsible
and accountable for the affairs and overall performance
of the Group. Its primary role is to protect and enhance
shareholders interests by ensuring proper systems and
controls are in place to safeguard the Groups assets and
its good reputation. Considering the recommendations
made by Management, the Board identies key risk
areas and makes strategic choices, approves the
Companys investments, capital expenditure and operating
budgets, monitors the implementation of strategies
whilst maintaining an effective corporate governance
framework. In so doing the Board may delegate certain
duties to Board Committees and to Management.
The Directors perform their duties and exercise their
powers to the extent permitted by law. They have the right
to seek independent professional advice at the expense
of the Company to enable them to discharge their
responsibilities effectively.
The roles of the Chairman and of the Chief Executive
Ofcer are clearly separated. The Chairman has no
executive or management responsibilities and his main
role is to lead and monitor the work of the Board of
Directors and to ensure that it operates effectively. He is
elected by the members of the Board and also acts as
Chairman at shareholders meetings. The Chief Executive
Ofcer is responsible for the day-to-day management of
the Group, preparing and recommending development
plans to the Board in line with the Groups long-term
strategy and vision and making and implementing
operational decisions.
All Directors, whether executive, non-executive or
independent non-executive are bound by duciary
duties. They have both a legal and moral duty to act
independently, in good faith, with due care and skill,
and without fetter or instruction. Non-executive and
independent Directors perform their duties intermittently
and have less regular access to the Companys books
and records than do executive Directors but they play a
particularly vital role in providing independent judgement
in all circumstances. They are individuals of calibre and
credibility, and have the necessary skill and experience to
bring judgement, independent of management, on issues
of strategy, performance, resources, transformation,
equal opportunities, standards of conduct and evaluation
of performance. Executive Directors on the other
hand, manage the conict between their management
responsibilities and their duciary duties in the best
interests of the Company.
Board Composition
According to the Companys Constitution, the Board shall
consist of a minimum of 7 and a maximum of 15 Directors.
The Company is currently headed by a unitary Board of
10 Directors comprising of 6 Non-Executive Directors,
3 Independent Non-Executive Directors and one Executive
Director. Although acknowledging that the Code of
Corporate Governance provides that there should be at
least two Executive Directors on the Board, the Board is
of the opinion that the presence of the Finance Manager
and Company Secretary at all Board meetings satises this
requirement of the Code.
The Directors bring a wide range of experience and skills
to the Board and ensure that their other responsibilities
do not interfere with their responsibilities as Director of
the Company. Please refer to Directors Proles on pages
6 and 7 for an update of their proles.
Directors Directorships
The directorships of the Directors of the Company in
other companies listed on the Ofcial Market of the Stock
Exchange of Mauritius at June 30, 2013 were as follows:
Abbreviations:
AL Alteo Ltd
MCB The Mauritius Commercial Bank Ltd
IBL Ireland Blyth Ltd
MSM Mauritius Stationery Manufacturers Ltd
IGF Ipro Growth Fund Ltd
PBL Phoenix Beverages Ltd
LUX Lux* Island Resorts Ltd
SRL Sun Resorts Ltd
The other Directors of the Company did not have any
directorships in companies listed on the Ofcial Market of
the Stock Exchange of Mauritius at June 30, 2013.
Appointment and Re-Election of Directors
According to the Companys Constitution, the Board has
the power to appoint any person to be a Director, either
to ll a casual vacancy or as an addition to the existing
Directors but so that the total number of Directors does not
at any time exceed the number xed by the Constitution.
Any Director so appointed shall hold ofce only until the
next following Annual Meeting of shareholders and shall
then be eligible for re-election.
New Directors appointed to the Board are familiarised
with the Companys operations, its business environment
and senior management. They are also made aware
of their duciary duties and responsibilities. A suitable
induction of Directors contributes to ensuring that the
Company maintains a well-informed and competent
Board and enables any new Director to make the
maximum contribution as quickly as possible. In addition
to this, all Directors are invited to enrol onto the Directors
Development Programme (DDP) of the Mauritius Institute
of Directors (MIoD) which provides a complete range of
training relevant to the role and responsibilities of Board
members.
During the year ended June 30, 2013, there was no
change in the composition of the Board of Directors.
However, on August 13, 2013, Mr Marc Freismuth
was elected as Chairman of the Company further to the
decision of Mr Thierry Lagesse to step down from this
position. Furthermore, a resolution will be submitted at
the forthcoming Annual Meeting of shareholders of the
Company for the re-election of Mr E. Jean Mamet, aged
70, to continue to hold ofce as Director of the Company
until the next Annual Meeting in accordance with Section
138(6) of the Companies Act 2001.
The Corporate Governance Committee of the Board
also serves as the Nomination Committee. The role
of the Committee is to review the composition of the
Board of Directors and Board Committees and to make
recommendations to the Board for the re-election of
directors and for the approval of candidates to ll any
vacancy arising on the Board and on Board Committees
or as an addition to the existing Directors.

The Companys Constitution does not provide for
the rotation of Directors. The Code of Corporate
AL IBL IGF MCB MSM LUX PBL SRL
Directors
Laurent de la Hogue
*
Arnaud Lagesse
*

*

*
Stephane Lagesse
Thierry Lagesse
E. Jean Mamet
*
: Chairman
Governance provides that each Director should be
elected or re-elected every year at the Annual Meeting
of shareholders. Although being of the opinion that
the holding of office by Directors relies on their
experience and knowledge of the Groups activities
to ensure that they exercise the appropriate degree of
leadership, skill and judgement required to achieve a
sustainable performance over the years, the Corporate
Governance Committee has decided to comply with
the Code and to include the re-election of all Directors
at the agenda of the Annual Meeting of shareholders
of the Company. In addition, the Board is continuously
considering bringing new skills amongst its members.
Directors and Senior Ofcers Interests and
Dealings in Shares
The Directors and Senior Ofcers interests in the ordinary
shares of the Company are set out in the table on page 37
of Other Statutory Disclosures.
The Directors of the Company use their best endeavours
to abide to the principles set out in the Model Code
on Securities Transactions by Directors as stipulated in
Appendix 6 of the Listing Rules of the Stock Exchange
of Mauritius. All newly appointed Directors are required
to notify the Company Secretary in writing about their
direct and indirect holdings in the shares of the Company
although, as per the Companys Constitution, a Director is
not required to hold shares in the Company. Subsequently,
any Director willing to deal in the shares of the Company
should notify the Chairman of the Board and obtain a
written acknowledgement before proceeding further.
The Directors and Senior Ofcers of the Company are
prohibited from dealing in the shares of the Company
for a period of one month preceding the publication of
the Companys quarterly and yearly nancial statements
and prior to the announcement of a dividend payment or
other distribution and more generally, at any time when
in possession of unpublished price-sensitive information
relevant to the Company.
During the year under review, Mr Bernard Lagesse, Senior
Ofcer, sold 4,000 shares of the Company. Except for
this, none of the Directors and Senior Ofcers dealt in the
shares of the Company, either directly or indirectly.
Furthermore, pursuant to the provisions of The Securities
Act 2005, the Company registered itself as a reporting
issuer with the Financial Services Commission (FSC) in
2008 and identied its insiders according to the denitions
within the Act. All the insiders and their associates were
required to disclose their interest in the shares of the
Company and in those of the associates of the Company.
This information was then forwarded to the FSC and
thereafter any movement thereon is being recorded and
notied to the Commission.
As such this year, the Commission was notied when
GML Investissement Lte and Forward Investment &
Development Enterprises Ltd acquired respectively
1,135,000 and 130,800 shares of the Company on June
25, 2013. In addition, all the abridged group quarterly
nancial statements and the audited nancial statements
for the year are sent to the Commission in accordance
with Section 88 of the Act.
Board Meetings
The Chairman and the Chief Executive Ofcer, assisted
by the Company Secretary, are responsible for xing the
agenda for each Board meeting.
The quorum for Board meetings is 4 Directors when
the Board consists of 7 members and 5 Directors when
the Board consists of more than 7 members. In case of
equality of votes, the Chairman has a casting vote.
Directors have the responsibility to attend Board meetings.
The attendance record for the year under review is as
shown on page 29.
The Board met six times this year to examine, consider,
discuss or approve, amongst other items, the audited
group nancial statements, the abridged group nancial
statements and the Annual Report for year ended June 30,
2012, the remuneration of external auditors, the abridged
group nancial statements for the quarters to September
30, 2012, December 31, 2012 and March 31, 2013,
the progress and alternatives available for the property
development of Compagnie de Gros Cailloux Lte, the
appeals and court cases relevant to our new plant at
Geoffroy Road, the proposal of a Chairmans Support
Agreement, the Board calendar for 2013, the nomination
of a Deputy CEO and an update of the succession plan, the
restructuring of existing debts through an issue of bonds,
the appraisal of an investment project, the results forecasts
to June 30, 2013, the declaration of a dividend and the
operating and capital expenditure budgets for the nancial
year 20132014. Decisions were also taken by way of
resolutions in writing, signed by all the Directors.
Board Committees
In order to full its obligations and duties, the Board has
delegated certain duties and responsibilities to Board
Committees to ensure full review of specic matters.
This delegation does not however reduce the overall
responsibilities of the Board.
In line with the Code, the Corporate Governance
Committee and the Audit Committee were set up in 2005
with clearly dened terms of reference. These Board
Committees report to the Board on their activities and
recommend specic matters to the Board for its approval.
Corporate Governance Committee
The composition of the Corporate Governance Committee
is as follows:
Chairman : Jol Harel
Members : Marc Freismuth
Thierry Lagesse
The Codes aspiration is that the Corporate
Governance Committee be chaired by an Independent
Non-Executive Director. The Board had nominated Mr
Thierry Lagesse, the then Non-Independent Chairman
of the Board, to chair this Committee in view of his
past experience and given that he has no executive
responsibilities and since there was a majority
of Independent Non-Executive Directors on the
Committee. However, since Mr Marc Freismuth has
ceased to be an independent Director, the Board has
decided to appoint Mr Jol Harel as Chairman of the
Committee in replacement of Mr Thierry Lagesse who
remains a member of the Committee.
The Corporate Governance Committee is also responsible
for Nomination and Remuneration aspects of the Code
and its functions are as follows :
In its role as Remuneration Committee, its terms of
reference include inter alia the development of the
Groups general policy on executive and senior
management remuneration including the denition
of performance measurement criteria and specic
remuneration packages for executive Directors and
senior management and the making of recommendations
to the Board on all aspects of remuneration.
In its role as Nomination Committee, it reviews the
structure, size and composition of the Board, it assesses
and evaluates the role of each potential and current
Director and makes recommendations to the Board for
the election and re-election of Directors and for matters
relevant to the succession planning.
It has a further responsibility of determining the
policy on Corporate Governance in accordance
with the principles of the Code, to advise and make
recommendations to the Board of Directors on all aspects
of Corporate Governance and to report to shareholders
on compliance with the provisions of the Code.
The Committee met three times during the financial
year 2012-2013 to appoint a new Chairman for
the Committee, to examine and take decisions on
corporate governance issues, to review the Boards
composition, to determine the remuneration policy of
Directors, Committee members and key management
personnel and to discuss and approve the proposed
succession plan.
shown on page 29. Mr Jean Michel Giraud, the Chief
Executive Ofcer, is in attendance at all meetings of the
Committee.
The remuneration of the Chairman and of each member
of the Corporate Governance Committee for the year
ended June 30, 2013 amounted to Rs 30,000 (2012 :
Rs 10,000).
Audit Committee
The composition of the Audit Committee is as follows:
Chairman : E. Jean Mamet
Members : Franois Boull
Jol Harel
As recommended by the Code, the Chairman of this
Committee is an independent non-executive Director as
well as the two members.
The Audit Committee Charter was approved by the Board of
Directors on May 20, 2005. The main duty of the Committee
is to ensure the integrity of accounting and nancial reporting
and to review internal control systems and procedures in order
to assist the Board of Directors in carrying out its responsibilities.
The Committee also monitors the role and scope of work of
internal and external auditors, including the identication
of any risk areas, and ensures compliance with legal and
regulatory provisions. The Committee has the authority to
conduct investigations into any matter within its scope of
responsibilities and to engage any rm of professionals it sees
t to provide independent expert advice.
The Committee met ve times during the nancial year
2012-2013, mainly to review and recommend to the
Board for approval the audited nancial statements and
the Annual Report for year ended June 30, 2012 as well
as the unaudited abridged group quarterly nancial
statements, to x the remuneration of external auditors,
to review the reports of internal and external auditors
and to follow-up remedial actions by management
based on their recommendations, to approve the writing
Audit Committee (Contd)
up of a procedures manual for both the core business and
retailing operations, to review issues relevant to the reliance
of the auditors on the existing IT system, to document the
procedures within the IT function and to consider and make
recommendations on the proposed Chairmans Support
Agreement. In so doing, the Committee reviewed control
systems and procedures in place at all the subsidiary
companies within the Group.
shown on page 29. The Finance Manager is in attendance
at all meetings of the Committee whilst the Chief Executive
Ofcer, the internal and external auditors and some
members of the management attended the meetings by
invitation depending on the agenda.
The remuneration of the Chairman and of each member
of the Audit Committee for the year ended June 30, 2013
amounted to Rs 150,000 (2012 : Rs 120,000) and
Rs 100,000 (2012 : Rs 80,000) respectively.
Internal Audit Function
The internal audit function is responsible for providing
independent, objective assurance to the Board regarding
the implementation, operation and effectiveness of
internal control systems and risk management. The
objective is to ascertain the extent of compliance to
procedures, policies, regulations and legislation, to
facilitate proper risk management practices and to
recommend improvements in control, performance and
productivity within the Group.
The internal audit function is carried out by a member
of our staff who has access to all Companys records,
systems and personnel and maintains an open and
constructive communication line with the management
and the Audit Committee. The internal audit plan was
approved by the Audit Committee and gives the extent
of coverage attributable to each business process cycle
within the organisation depending on the degree of
risk. The methodology used is based on the selection
of specic business cycles, the identication of inherent
risks, the verication of key controls in place in view of
eliminating or reducing the risks to an acceptable level,
the verication of the said controls to ensure they are
operating satisfactorily, the performance of walkthrough
tests on procedures and processes and the formulation of
necessary recommendations.
During the year under review, the internal auditor carried
out regular visits to all operational sites to ensure the controls
and procedures are adhered to and to improve processes
where necessary in order to minimise risks. His ndings were
classied in terms of risk level and his recommendations
were discussed and commented by management. This year
again, no material nancial problems were identied which
would affect materially the gures reported in the nancial
statements. The recommendations are being implemented
gradually by management under the close follow-up of the
Audit Committee.
The rm BDO & Co. which was also in charge of our
internal audit function until last year has been assigned
the task of writing up a procedures manual for all
aspects of the business within the Group. The job is still
in progress and will in due course be used as reference
and updated whenever necessary. At time of writing, the
management is considering the recruitment of additional
staff and the acquisition of specialised software to
enable the internal audit function to enlarge its scope of
work and to be more effective.
Internal Control and Risk Management
The Board of Directors is ultimately responsible for
the adequacy and effectiveness of the internal control
system which is designed to manage the risk of failure to
achieve business objectives and which can only provide
reasonable and not absolute assurance against material
nancial misstatement or loss.
The management is responsible for the implementation
of internal control and risk management systems under
the supervision of the Audit Committee to ensure their
effectiveness. Such systems must ensure that proper
accounting records are maintained and that the strategies
and policies adopted by the Board are being implemented.
The Board relies on the internal audit function to report
on any weaknesses and to make recommendations via
the Audit Committee, the objective being to ensure the
effective and efcient use of available resources and
ascertaining the accuracy of information used in the
preparation of nancial statements.
The key risks relevant to the Group are as follows :
Industry risks : risks that makes the industry less
attractive as a result of changes in (i) the key factors
for competition success within the industry, including
signicant opportunities and threats, (ii) the capabilities
of existing and potential competitors and (iii) the Groups
strengths and weaknesses relative to present and future
competitors.
Operational risks : risks dened as risks of loss
resulting from inadequate or failed internal processes
and procedures, human error or system failure or from
external events e.g. Legal risks.
Operational risks are further broken down into the
following ve constituents:
Human resources risks : losses arising from acts
inconsistent with employment and health and safety
laws.
Fraud risks : intentional or fraudulent acts intended
to defraud or misappropriate property or circumvent
regulations, law and policies and involving one internal
party and/or a third party.
Physical risks : losses due to re, cyclone, explosion,
riots or else.
Business continuity risks : losses from failed transaction
processing and process management, inadequate back-
ups and loss of data.
Reputational risks : losses due to unintentional or
negligent failure to meet a professional obligation
to specic clients or from the nature or design of a
product.
Technology risks : risks that hardwares and softwares
are not operating as intended thereby compromising
the integrity and reliability of data and information and
exposing signicant assets to potential loss or misuse
or exposing the Groups ability to maintain a high
standard in its main business processes.
Country risks : risks arising when the political climate
in a specic country affects the business environment
and impacts on the companys objectives and
strategies in such a way that the company may get
out of business.
Financial risks : exposure to credit, interest rate, liquidity,
foreign currency and capital management risks.
The Audit Committee via the internal audit function
ensures that some of the above risks are managed
and kept at an acceptable level. Our sales, marketing
and operations staff follow closely the actions of our
existing and potential competitors, our internal auditor
does regular testing aimed at detecting any potential
weaknesses in our internal control systems and any
likely risk of fraud, our HR department manages
human resources risks via proper and adequate job
reviews and performance evaluation, our assets are
insured against re and allied perils and other all risks
insurance cover as relevant to the type of asset, our
ofces and operational sites are all equipped with
re extinguishers and security systems, our health and
safety department ensures that all necessary measures
are taken to minimise risks, our IT department ensures
the latest technologies are used for our ERP and that
our database is secured via a disaster recovery plan,
our manufactured products are tested in our laboratory
to ensure they are of the required standard and our
overseas subsidiaries managers follow the political
events closely to avoid any risk of business failure.
For nancial risks management, please refer to note 4 of
the Notes to the Financial Statements on pages 66 to 69.
Meetings Attendance
Management Agreement
There is no management agreement between any third
party and the Company or its subsidiaries. However,
the Company itself has management agreements with
subsidiaries and associates within the Group.
Remuneration Philosophy Statement
The Corporate Governance Committee in its role as
Remuneration Committee is responsible for making recom-
mendations to the Board with regard to the denition and
development of the Groups general remuneration policy,
including determining performance measurement criteria
and specic remuneration packages for executive Directors
and senior management and the level of remuneration of
non-executive Directors, taking into consideration the mar-
ket trend and the Groups performance.
Board
Corporate
Governance
Committee
Audit
Committee
Marc
Freismuth
4 out of 6 3 out of 3
Franois
Boull
Jean Michel
Giraud
6 out of 6
Jol Harel 6 out of 6 3 out of 3 5 out of 5
Laurent de la
Hogue
6 out of 6
Arnaud
Lagesse
4 out of 6
Stephane
Lagesse
3 out of 6
Thierry
Lagesse
Jean Claude
Maingard
5 out of 6
E. Jean
Mamet
Remuneration Philosophy Statement (Contd)
The current remuneration scheme is being reviewed with
the help of consultants to favour more alignment between
remuneration and performance in terms of business
objectives and to recognise both corporate and individual
performance. A grading system has been introduced for
all staff whilst the competencies are being assessed in
view of identifying any training need and hence elaborate
a full rewarding system. This will enable the Company to
motivate, retain and attract best employees capable of
achieving the Groups objectives.
Please refer to Other Statutory Disclosures on page 36 for
a table of total emoluments and benets received by the
Directors from the Company and subsidiary companies.
Although acknowledging that the Code requires that the
remuneration received by Directors should be disclosed on
an individual basis, the Corporate Governance Committee,
in its role as Remuneration Committee, has recommended that
the remuneration be disclosed by category of Directors only
in view of the condentiality and sensitivity of this information.
The remuneration of the Chief Executive Ofcer comprises
a basic salary and other benets in kind and an annual
performance bonus. The proportion of variable pay to
xed pay is signicant and aims at aligning the interests
of the Chief Executive Ofcer to those of the Group.
Company Secretary
All Directors have access to the advice and services of
the Company Secretary who is responsible for ensuring
that Board procedures are followed and for providing
guidance and proper induction to Directors concerning
their duties, responsibilities and powers.
The Company Secretary administers, attends and prepares
minutes of all Board and Shareholders meetings. He
assists the Chairman in ensuring that the Companys
Constitution and relevant rules and regulations are
complied with and in implementing good governance
practices within the Group.
Employee Share Option Plan
The Company has no employee share option plan.
Integrated Sustainability Reporting
The Board believes that it is in the long-term economic
interest of the Company to conduct itself as a responsible
corporate citizen and to act in a manner which is non-
exploitative, non-discriminatory and respectful of human
rights.
In terms of ethics, the Company has at the time of writing
a draft version of its Code of Ethics which is yet to be
implemented but inspires itself from the principles set out in
the Model Code of the Joint Economic Council as adapted
to meet its specic needs. Nevertheless, the Company
strongly expects all its employees to act with honesty
and integrity amongst colleagues and with customers,
suppliers and other stakeholders, thereby ensuring the
good reputation of the Company.

In terms of the environment, the Company is continuously
making signicant investments in appropriate
equipments aimed at reducing dust emission from
its production plants. Our plant at Geoffroy Road
is the rst eco-friendly plant of its kind in Mauritius.
Furthermore, a few years ago the Company launched a
concrete recycling project aimed at reducing the level
of demolition waste dumping.
In terms of health and safety, the Companys Health
and Safety Ofcer performs regular risk assessments to
ensure that the production units are equipped to run in
a safely manner thereby minimising the risk of causing
damage to the environment and to the neighbourhoods.
As regards the health and safety of employees, regular
training sessions are provided to ensure health and
safety practices are applied and to help increase the
awareness of employees on security and health issues by
insisting on the use of protective clothing and accessories.
Furthermore, all security issues are taken into consideration
in the determination of Key Performance Indicators used
to assess the performance of all Managers.
In terms of social responsibility, our policies and practices
are as detailed in our Corporate Social Responsibility
(CSR) report on page 32.
Donations
Please refer to Other Statutory Disclosures on page 38 for
details of donations made during the year.
Related Party Transactions
Please refer to note 29 of the Notes to the Financial
Statements on page 87.
Company Secretary
September 26, 2013
CORPORATE
SOCIAL RESPONSIBILITY
(CSR) REPORT
This report sets out the UBP Groups Corporate Social Responsibility (CSR) programme for
the year ended June 30, 2013. This year again, the Group has been active mainly in the
following areas of intervention: the welfare of vulnerable children, education, socio-economic
development and sports. All the projects have been realised in compliance with the CSR
guidelines thereby ensuring a better coordination and continuity of the activities in which we
were already engaged.
Review of activities
For the nancial year under review, the Group
has been involved in twenty projects more
particularly in the vicinity of our production
and sales sites although several of them were
implemented at national level.
The NGOs who benetted from our programme
under the Welfare of Vulnerable Children
are: Mouvement Forces Vives Quartier EDC
in Rose-Belle, Ecole Rve & Espoir, La Pointe
Tamarin, Garderie Etoile, A.P.E.I.M., Fondation
pour lInterculturel et la Paix and Solidarit
Mamans.
The Group has also been involved in the
promotion of Education in supporting the
following schools and project : New Bambous
Geoffroy Government School, Cottage
Government School and Institut Cardinal Jean
Margot for the project Les Amis de Zippy.
Also very active in the eld of Sports, the
Group provided sponsorship to the following
organizations : Trust Fund for Excellence in
Sports, The Faucon Flacq Sporting Club,
Triathlon Club de Roches Brunes and Union
Rugby Mauritius as we strongly believe that
sports can contribute to the development of
children and facilitate their integration into
society.
Finally, the Group has been involved in projects
in the Socio-Economic development eld
whereby assistance has been provided to La
Chrysalide and Bel Ombre Foundation For
Empowerment in view of alleviating poverty
and improving the living conditions of the
most destitute persons.
Besides our core priority projects above,
the Group has also participated actively
in various other initiatives forming part
of the Fondation Joseph Lagesse areas of
intervention, namely in terms of support to
childcare services and technical training
for Caritas Centre dEveil in Grand Gaube,
Collge Technique St Gabriel, Ecole
dAlphabtisation de Fatima in Triolet and
Mahebourg Espoir Education Centre.
In summary, the Group has contributed Rs 4.4
million to CSR activities for the nancial year
2012 2013, shared as follows amongst
our main areas of intervention : Welfare of
Vulnerable Children (34%), Education
(6%), Sports (27%), Socio-Economic
development (8%) and projects in
common with Fondation Joseph
Lagesse (25%).
This year again, our programme has been
enriching in many aspects. It has been a
great pleasure to assist the new NGOs and
we are proud of the progress perceived from
our beneciaries. For the nancial year 2013
- 2014, our drive will be inspired by the
same motive whilst the Group will continue
to endeavor sustainable projects in creating
value and promoting the well-being of the
community.
for
the
UBP GROUP | ANNUAL REPORT 2013 33 UBP GROUP | ANNUAL REPORT 2013 333 33
STATEMENT OF DIRECTORS
RESPONSIBILITIES
in respect of the preparation of nancial statements and internal
control.
The Directors are responsible for the preparation of nancial
statements which give a true and fair view of the nancial position,
nancial performance and cash ows of the Company. In so doing
they are required to :
select suitable accounting policies and apply them consistently;
make judgements and estimates that are reasonable and
prudent;
comply with the provisions of the Companies Act 2001 and the
International Financial Reporting Standards (IFRS), and explain
any material departure thereto;
prepare the nancial statements on a going concern basis
unless it is inappropriate to presume that the Company will
continue in business in the foreseeable future.
The Directors acknowledge that they have exercised their
responsibilities as described above and conrm that they have
complied with the above requirements in preparing the nancial
statements for the year ended June 30, 2013.
The Directors are also responsible for the proper maintenance of
accounting records which disclose at any time and with reasonable
accuracy, the nancial position and performance of the Company.
They are also responsible for safeguarding the assets of the
Company and for taking reasonable steps to prevent and detect
fraud and other irregularities.
The Directors conrm that they have established an internal audit
function and report that proper accounting records have been
maintained during the year ended June 30, 2013 and that nothing
has come to their attention which could indicate any material
breakdown in the functioning of internal control systems and have
a material impact on the trading and nancial position of the
Company.
On behalf of the Board
Chairman Chief Executive Ofcer
September 26, 2013
OTHER STATUTORY
DISCLOSURES
(Pursuant to Section 221 of the Companies Act 2001)
ACTIVITIES
The principal activity of the Group remains the
manufacture and sale of building materials which consist
mainly of our core products: aggregates, rocksand and
hollow concrete blocks. Other products include precast
concrete slabs, ready-to-use dry mortar, various concrete
building components including paving-blocks and roof
tiles, imported oor and wall tiles, sanitary ware and
a complete range of home building products, ttings,
tools and garden accessories. Services rendered
consist mainly of engineering works by the Companys
workshop and contracting services.
The Group is also involved in the sale of agricultural
products through one of its subsidiaries.
DIRECTORS
Members of the Board of Directors at June 30, 2013
were:
The Company
Messrs: Thierry Lagesse - Chairman
Franois Boull
Marc Freismuth
Jean Michel Giraud
Jol Harel
Laurent de la Hogue
Arnaud Lagesse
Stephane Lagesse
E. Jean Mamet
On August 13, 2013, Mr Marc Freismuth was elected
Chairman of the Company further to the decision of
Mr Thierry Lagesse to step down from this position.

UUBBP BP BP P UBBP P U GROU GROU GROU GROU GROU GROU ROU ROOU OU OU OU UU O RO GGGGGROU GROU ROU GROU ROU O PPPP | PPPP | PP | PP P AAN ANNNU NNU NU NU NUU NU NN AANNN A NNNU A AL R AAL R L RR AL R AL R AL R L R AAL RR AL R A EPOR O EPOR EPOR EPOR EPOR E OR EE T 20 T 20 T 2000 T 20 20001113 13 13 11133 3334 34 344 344 34 334444 3444 3
Subsidiary Companies
Espace Maison Lte
Franois Boull
Marc Freismuth
Jean Michel Giraud
Jol Harel
Laurent de la Hogue
Stephane Lagesse
E. Jean Mamet

Compagnie de Gros Cailloux Lte
Franois Boull
Jean Michel Giraud
Welcome Industries Ltd
Jean Michel Giraud
UBP International Ltd
Jean Michel Giraud
Louis Raoul Harel
UBP Madagascar
Mr: Steve Ren Manager
United Granite Products (Pvt.) Ltd
Messrs: Jean Michel Giraud - Chairman
Joseph Albert
A. Mahir Didi
Rmi de Gersigny
Hussain Saad Hasim
Sainte Marie Crushing Plant Ltd
Jean Michel Giraud
Richard Koenig
Stephane Ulcoq
Dry Mixed Products Ltd
Brice Riche Appointed on March 15, 2013
in replacement of Mr Edelio Bermejo* who
resigned on the same date.
Thierry Lagesse
- alternate: Rmi de Gersigny
Alexandre Roland Maurel
- alternate: Lloyd George Richard-Coombes
Colin Taylor
- alternate: Eric Adam
* Prior to his resignation and replacement by Mr Brice
Riche on March 15, 2013, Mr Edelio Bermejo was
appointed as Director on July 17, 2012 in replacement of
Mr Vincent Lenette who resigned on the same date.
OTHER STATUTORY DISCLOSURES (Contd)
Marbella Ltd
Franois Boull
Jol Harel

Land Reclamation Ltd
Franois Boull
Jol Harel
Mr Jean Giraud passed away on May 14, 2013
and was not replaced.
Stone & Bricks Co. Ltd
Jol Harel
The Stone Masters Co. Ltd
Jol Harel
Pricom Ltd
Jean Michel Giraud
Jol Harel
2013 2012
Executive Non-Executive Executive Non-Executive
Rs000 Rs000 Rs000 Rs000
The Company 8,681 1,800 10,314 1,570
Subsidiary Companies :
Espace Maison Lte - 536 - 536
Compagnie de Gros Cailloux Lte - 120 - 150
Welcome Industries Ltd - - - -
UBP International Ltd - - - -
UBP Madagascar - - - -
United Granite Products (Pvt.) Ltd - - - -
Sainte Marie Crushing Plant Ltd - 120 - 112
Dry Mixed Products Ltd - - - -
Marbella Ltd - - - -
Land Reclamation Ltd - - - -
Stone & Bricks Co. Ltd - - - -
The Stone Masters Co. Ltd - - - -
Pricom Ltd - - - -
DIRECTORS REMUNERATION AND BENEFITS
Total remuneration and benets received by the Directors from the Company and its subsidiary companies were as
follows:
DIRECTORS AND SENIOR OFFICERS INTERESTS IN SHARES
The Directors and Senior Ofcers interests in the ordinary shares of the Company at June 30, 2013 were as follows:
Except for the above, none of the other Senior Ofcers had an interest in the shares of the Company, either directly or
indirectly.
None of the Directors and Senior Ofcers of the Company had an interest in the shares of the subsidiary companies.
DIRECTORS SERVICE CONTRACTS
Except for Mr Jean Michel Giraud who has a contract of employment with the Company, there is no service contract
between the Company and any of the Directors.
DIRECTORS AND OFFICERS INSURANCE AND INDEMNIFICATION
The Directors and the Secretary of the Company benet from an indemnity insurance cover for liabilities incurred while
performing their duties, to the extent permitted by law.
Ordinary shares
Category
Number % Number %
Directors
Marc Freismuth - Chairman NICB - - - -
Franois Boull INED - - 26,270 0.099
Jean Michel Giraud ED 4,184 0.016 2,526 0.010
Jol Harel INED - - - -
Laurent de la Hogue NED - - - -
Arnaud Lagesse NED - - 9,452 0.036
Stephane Lagesse NED 216 0.001 45,023 0.170
Thierry Lagesse NED 1,116 0.004 45,023 0.170
Jean Claude Maingard NED - - - -
E. Jean Mamet INED - - 2,000 0.007
Senior Offcers
Christophe Quevauvilliers * 600 0.002 12 0.000
Denis Lincoln * 1,200 0.004 - -
Clivy Coutet Chan Chuen * 1,500 0.005 - -
Dhuenesh Rambarassah * 480 0.002 - -
Jocelyne LArrogant * 10 0.000 - -
Bernard Lagesse * 8,000 0.030 - -
Raoul Maurel * 300 0.001 10 0.000
Edley Michaud * 605 0.002 - -
ED Executive Director INED Independent Non-Executive Director
NED Non-Executive Director NICB Non-Independent Chairman of the Board
* The job titles of the Senior Ofcers are as described in their prole on pages 8 and 9.
Indirect Direct
OTHER STATUTORY DISCLOSURES (Contd)
SHAREHOLDERS
Substantial Shareholders
Shareholders holding more than 5% of the share capital of the Company at June 30, 2013 were as follows :
Except for the above, no other entity or individual had an interest of 5% or more in the ordinary share capital
of the Company.
CONTRACTS OF SIGNIFICANCE
No Director or any substantial shareholder had a material interest, either directly or indirectly, in a contract
of signicance entered into by the Company or its subsidiaries.
DONATIONS
The Company and its subsidiary companies have donated Rs 1,212,527 during the year ended June 30,
2013 (2012: Rs 1,016,542) out of which none (2012: Rs Nil) were political donations.
AUDITORS REMUNERATION
The auditors remuneration was as follows:
The non-audit fees paid by the Group to Ernst & Young comprised of tax services for Rs 279,705 (2012 :
Rs 264,016) and of assistance for new IFRS disclosures and out of scope services for Rs 205,500 (2012 :
Rs 175,000).
The Group did not pay any non-audit fees to other rms for the year ended June 30, 2013 (2012 : Rs Nil).
THE GROUP THE COMPANY
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Audit fees :
Ernst & Young 2,169 2,008 980 925
Other frms - - - -
Non-audit fees :
Ernst & Young 530 439 206 197
Other frms - - - -
Shareholders Number of shares % Holding
GML Investissement Lte 7,764,839 29.29
Forward Investment and Development Enterprises Ltd 2,636,981 9.95
COMPANY
SECRETARYS
CERTIFICATE -
JUNE 30, 2013
I certify that, to the best of my knowledge and
belief, the Company has led with the Registrar of
Companies all such returns as are required of the
Company under the Companies Act 2001.
Company Secretary
September 26, 2013
INDEPENDENT AUDITORS
REPORT TO THE MEMBERS
OF THE UNITED BASALT
PRODUCTS LTD
Report on the Financial Statements
We have audited the nancial statements of The United
Basalt Products Ltd (the Company), and its subsidiaries (the
Group) on pages 42 to 91 which comprise the statements
of nancial position as at June 30, 2013 and the statements
of comprehensive income, statements of changes in equity and
statements of cash ows for the year then ended and a summary
of signicant accounting policies and other explanatory notes.
Directors Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair
presentation of these nancial statements in accordance
with International Financial Reporting Standards and in
compliance with the requirements of the Companies Act
2001 and Financial Reporting Act 2004, and for such
internal control as the Directors determine is necessary to
enable the preparation of nancial statements that are free
from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these nancial
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 nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the nancial statements. The
procedures selected depend on the auditors judgement, including
the assessment of the risks of material misstatement of the nancial
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to
the companys preparation and fair presentation of the nancial
statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the companys 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 nancial statements.
We believe that the audit evidence we have obtained is sufcient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the nancial statements on pages 42 to 91
give a true and fair view of the nancial positions of the
Group and the Company as at June 30, 2013 and of their
nancial performances and cash ows for the year then
ended in accordance with International Financial Reporting
Standards and comply with the Companies Act 2001 and the
Financial Reporting Act 2004.

Other Matter
This report, including the opinion, has been prepared for and
only for the Companys members, as a body, in accordance
with Section 205 of the Companies Act 2001 and for no other
purpose. We do not, in giving this opinion, accept or assume
responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come
save where expressly agreed by our prior consent in writing.
Report on Other Legal and Regulatory Requirements
Companies Act 2001
We have no relationship with or interests in the Group and
the Company other than in our capacities as auditors, tax
advisors, and dealings in the ordinary course of business.
We have obtained all the 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 the compliance with the Code of Corporate Governance as
disclosed in the annual report and on whether the disclosure
is consistent with the requirements of the Code.
In our opinion, the disclosure in the annual report is consistent
with the requirements of the Code.
ERNST & YOUNG ANDRE LAI WAN LOONG,
A.C.A
Ebne, Mauritius Licensed by FRC
September 26, 2012
STATEMENTS OF FINANCIAL POSITION - AS AT JUNE 30, 2013
2013 2012 2013 2012
ASSETS Notes Rs000 Rs000 Rs000 Rs000
Non-current assets
Property, plant and equipment 5 2,917,457 2,957,503 1,414,486 1,441,680
Investment properties 6 18,390 20,299 193,663 211,949
Bearer biological assets 7 11,327 16,113 - -
Intangible assets 8 20,414 15,612 2,871 4,484
Investment in subsidiaries 9 - - 828,839 828,839
Investment in associates 10 198,750 179,428 110,306 110,306
Available-for-sale investments 11 49,596 46,914 44,725 42,562
Deferred tax assets 13(c) 20,452 27,269 17,484 18,374
3,236,386 3,263,138 2,612,374 2,658,194
Current assets
Consumable biological assets 14 35,772 28,262 - -
Inventories 15 646,374 596,631 222,333 186,094
Other fnancial asset 12 13,795 13,795 13,795 13,795
Trade and other receivables 16 579,900 620,899 580,301 549,153
Cash at bank and on hand 17 30,910 28,359 1,237 1,310
1,306,751 1,287,946 817,666 750,352
TOTAL ASSETS 4,543,137 4,551,084 3,430,040 3,408,546
EQUITY AND LIABILITIES
Equity
Issued capital 18(a) 265,100 265,100 265,100 265,100
Reserves 18(b) 2,680,746 2,593,646 1,931,938 1,825,259
Equity attributable to shareholders of the parent 2,945,846 2,858,746 2,197,038 2,090,359
Non-controlling interests 45,565 41,388 - -
Total equity 2,991,411 2,900,134 2,197,038 2,090,359
Non-current liabilities
Interest-bearing loans and borrowings 19 113,908 222,034 84,807 167,772
Deferred tax liability 13(c) 77,695 78,430 72,939 71,423
Employee beneft liability 20 114,570 93,719 84,983 77,304
306,173 394,183 242,729 316,499
Current liabilities
Interest-bearing loans and borrowings 19 910,319 941,778 875,978 886,556
Trade and other payables 21 318,717 302,982 106,685 109,918
Dividend 4,900 - - -
Income tax payable 13(b) 11,617 12,007 7,610 5,214
1,245,553 1,256,767 990,273 1,001,688
Total liabilities 1,551,726 1,650,950 1,233,002 1,318,187
TOTAL EQUITY AND LIABILITIES 4,543,137 4,551,084 3,430,040 3,408,546
These fnancial statements were approved by the Board of Directors on September 26, 2013 and signed on its behalf by :

Chairman Chief Executive Offcer
The notes on pages 46 to 91 form an integral part of these fnancial statements.
Auditors report on page 41.
STATEMENTS OF COMPREHENSIVE INCOME - YEAR ENDED JUNE 30, 2013
2013 2012 2013 2012
Notes Rs000 Rs000 Rs000 Rs000
Revenue 22 2,443,424 2,580,449 1,425,742 1,447,441
Operating proft 23 256,458 274,632 243,941 225,573
Finance income 24 4,833 7,276 41,765 60,889
Finance costs 25 (75,527) (84,107) (68,794) (76,660)
Share of results of associates 10 36,092 6,084 - -
Proft before tax 221,856 203,885 216,912 209,802
Income tax expense 13(a) (43,685) (32,751) (31,366) (26,895)
Proft for the year 178,171 171,134 185,546 182,907
Other comprehensive income
Items to be reclassifed to proft or loss in subsequent
periods:
Net gain/(loss) on available-for-sale investments 11 1,182 (12,953) 663 (12,963)
Exchange differences on translation of foreign operations (3,443) 38,220 - -
Net other comprehensive income to be reclassifed
to proft or loss in subsequent periods (2,261) 25,267 663 (12,963)
Items not to be reclassifed to proft or loss in subsequent
periods :
Revaluation of land and buildings 5 13,447 785,301 - 171,617
Deferred tax on revaluation of buildings - 58,852 - (1,388)
Share of reserves in associates 10 - (3,450) - -
Net other comprehensive income not to be
reclassifed to proft or loss in subsequent periods 5 13,447 840,703 - 170,229
Other comprehensive income for the year, net of tax 11,186 865,970 663 157,266
Total comprehensive income for the year, net of tax 189,357 1,037,104 186,209 340,173
Proft for the year attributable to:
Equity holders of the parent 160,759 149,626 185,546 182,907
178,171 171,134 185,546 182,907
Total comprehensive income for the year
attributable to:
Equity holders of the parent 171,923 1,014,368 186,209 340,173
189,357 1,037,104 186,209 340,173
Earnings per share (Rs)
Basic, proft for the year attributable to ordinary equity
holders of the parent. 26 6.06 5.64 7.00 6.90
Equity attributable to shareholders of the parent
THE GROUP
Share
Capital
Share
Premium
Associate
Companies
Revaluation
Reserve
Fair
Value
Reserve
Translation
Reserve
Retained
Earnings
Total Non-
controlling
Interests
Total
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At July 1, 2011 265,100 7,354 82,865 396,944 41,686 21,475 1,101,859 1,917,283 49,301 1,966,584
Proft for the year - - - - - - 149,626 149,626 21,508 171,134
Other comprehensive
income
- - (3,450) 840,945 (12,953) 40,200 - 864,742 1,228 865,970
Total comprehensive
income for the year
- - (3,450) 840,945 (12,953) 40,200 149,626 1,014,368 22,736 1,037,104
Decrease in
non-controlling interests
- - - - - - - - (5,799) (5,799)
Dividend (note 27) - - - - - - (72,905) (72,905) (24,850) (97,755)
At June 30, 2012 265,100 7,354 79,415 1,237,889 28,733 61,675 1,178,580 2,858,746 41,388 2,900,134
At July 1, 2012 265,100 7,354 79,415 1,237,889 28,733 61,675 1,178,580 2,858,746 41,388 2,900,134
Proft for the year - - - - - - 160,759 160,759 17,412 178,171
Other comprehensive
income
- - 13,447 1,182 (3,465) - 11,164 22 11,186
Total comprehensive
income for the year
- - - 13,447 1,182 (3,465) 160,759 171,923 17,434 189,357
Acquisition of
non-controlling interests
- - - - - - (5,293) (5,293) 5,293 -
Dividend (note 27) - - - - - - (79,530) (79,530) (18,550) (98,080)
At June 30, 2013 265,100 7,354 79,415 1,251,336 29,915 58,210 1,254,516 2,945,846 45,565 2,991,411
STATEMENTS OF CHANGES IN EQUITY - YEAR ENDED JUNE 30, 2013
THE COMPANY
Share
Capital
Share
Premium
Revaluation
Reserve
Fair
Value
Reserve
Retained
Earnings
Total
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At July 1, 2011 265,100 7,354 335,741 39,745 1,175,151 1,823,091
Proft for the year - - - - 182,907 182,907
Other comprehensive income - - 170,229 (12,963) - 157,266
Total comprehensive income
for the year
- - 170,229 (12,963) 182,907 340,173
Dividend (note 27) - - - - (72,905) (72,905)
At June 30, 2012 265,100 7,354 505,970 26,782 1,285,153 2,090,359
At July 1, 2012 265,100 7,354 505,970 26,782 1,285,153 2,090,359
Proft for the year - - - - 185,546 185,546
Other comprehensive income - - - 663 - 663
Total comprehensive income
for the year
- - - 663 185,546 186,209
Dividend (note 27) - - - - (79,530) (79,530)
At June 30, 2013 265,100 7,354 505,970 27,445 1,391,169 2,197,038
STATEMENTS OF CASH FLOWS - YEAR ENDED JUNE 30, 2013
2013 2012 2013 2012
Notes Rs000 Rs000 Rs000 Rs000
OPERATING ACTIVITIES
Proft before tax 221,856 203,885 216,912 209,802
Adjustment for:
Depreciation of property, plant and equipment 205,168 182,610 145,348 113,459
Depreciation of investment properties 1,909 1,909 15,101 15,537
Amortisation of intangible assets 4,267 3,187 1,613 1,472
Write-off of intangible assets 25 - - -
Write-off of property, plant and equipment 607 - - -
Amortisation of bearer biological assets 5,026 6,195 - -
Movement in employee beneft liability 20,851 4,072 7,679 4,869
(Proft)/loss on disposal of property, plant and equipment (2,675) 11,697 (2,524) (3,447)
Share of results of associates 10 (36,092) (6,084) - -
Impairment of amount receivable - - - 10,000
Finance costs 25 75,527 84,107 68,794 76,660
Finance revenue 24 (4,833) (7,276) (41,765) (60,889)
Movement in working capital:
- Consumable biological assets (7,510) 554 - -
- Inventories (49,743) 56,294 (36,238) 25,475
- Trade and other receivables 40,999 (69,167) (31,148) 29,550
- Trade and other payables 15,735 65,235 (3,233) 10,245
Cash generated from operations 491,117 537,218 340,539 432,733
Interest paid (75,527) (84,107) (68,794) (76,660)
Interest received 3,262 5,210 1,575 788
Dividend paid - The Company (79,530) (72,905) (79,530) (72,905)
Dividend paid - Minority shareholders (18,550) (24,850) - -
Income tax paid 13(b) (37,994) (45,407) (26,564) (32,292)
Net cash from operating activities 282,778 315,159 167,226 251,664
INVESTING ACTIVITIES
Purchase of property, plant and equipment 17 (150,445) (330,433) (114,515) (254,217)
Expenditure on bearer biological assets 7 (240) (4,190) - -
Purchase of investment properties - - (615) (3,014)
Purchase of intangible assets (8,614) (4,819) - (2,591)
Proceeds from disposal of property,
plant and equipment 4,346 25,193 2,685 3,696
Purchase of other fnancial asset 11 (1,500) (235) (1,500) (235)
Dividend received from associates 16,770 26,820 16,770 26,820
Dividend received from other equity investments 1,571 1,782 23,420 33,282
Net cash used in investing activities (138,112) (285,882) (73,755) (196,259)
FINANCING ACTIVITIES
Proceeds from borrowings 187,638 232,235 187,668 215,629
Repayment of term loans (297,339) (213,678) (261,362) (194,469)
Repayment of fnance lease liabilities (42,177) (45,732) (35,555) (36,662)
Net cash from fnancing activities (151,878) (27,175) (109,249) (15,502)
(Decrease)/increase in cash and cash equivalents (7,212) 2,102 (15,779) 39,903
MOVEMENT IN CASH AND CASH EQUIVALENTS
At July 1, (204,374) (214,675) (206,375) (246,278)
Exchange difference (2,530) 8,199 - -
Movement (7,212) 2,102 (15,779) 39,903
At June 30, 17 (214,116) (204,374) (222,154) (206,375)
1. CORPORATE INFORMATION
The United Basalt Products Ltd is a public Company incorporated and domiciled in Mauritius and listed on the offcial market
of the Stock Exchange of Mauritius. Its registered offce is situated at Trianon, Quatre Bornes.
The main activities of the Company and its subsidiaries, together referred to as the Group, are the manufacture and sale of
building materials, provision of workshop services and sale of agricultural products.
The consolidated and separate fnancial statements for the year ended June 30, 2013 were authorised for issue by the Board of
Directors on September 26, 2013 and the statements of fnancial position were signed on the Boards behalf by Messrs Marc Freismuth
and Jean Michel Giraud. The consolidated and separate fnancial statements will be submitted to the shareholder for approval at the
annual meeting.
2. ACCOUNTING POLICIES
2.1 BASIS OF PREPARATION

The consolidated and separate fnancial statements of the Group and the Company have been prepared in accordance with
International Financial Reporting Standards (IFRS) and comply with the Companies Act 2001.
The consolidated and separate fnancial statements have been prepared under the historical cost basis except for land and
buildings classifed under property, plant and equipment, available-for-sale investments and consumable biological assets which
are measured at their fair value as disclosed in the accounting policies hereafter.
The consolidated and separate fnancial statements are presented in Mauritian Rupees and all values are rounded to the nearest
thousand (Rs000) except where otherwise indicated.
2.2 BASIS OF CONSOLIDATION
The consolidated fnancial statements comprise the fnancial statements of The United Basalt Products Ltd and its subsidiaries
as at June 30, 2013.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to
be consolidated until the date that such control ceases. The fnancial statements of the subsidiaries are prepared for the same
reporting period as the parent company, using consistent accounting policies. All intra-group balances, income and expenses,
unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full. Total comprehensive
income within a subsidiary is attributed to the non-controlling interest even if that results in a defcit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the
Group loses control over a subsidiary, it:
Derecognises the assets (including goodwill) and liabilities of the subsidiary
Derecognises the carrying amount of any non-controlling interest
Derecognises the cumulative translation differences, recorded in equity
Recognises the fair value of the consideration received
Recognises the fair value of any investment retained
Recognises any surplus or defcit in proft or loss
Reclassifes the parents share of components previously recognised in other comprehensive income to proft or loss or
retained earnings, as appropriate.
NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED JUNE 30, 2013
2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate
of the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the
acquiree. For each business combination, the Group elects whether to measure the non-controlling interest in the acquiree either
at fair value or at the proportionate share of the acquirees identifable net assets. Acquisition related costs are expensed as
incurred and included in administrative expenses.
When the Group acquires a business, it assesses the fnancial assets and liabilities assumed for appropriate classifcation and
designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition
date. This includes the separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the previously held equity interest is measured at its acquisition date fair value
and any resulting gain or loss is recognised in proft or loss.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date.
Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IAS 39
Financial Instruments: Recognition and Measurement, is measured at fair value with changes in fair value recognised
either in profit or loss or as a change to other comprehensive income. If the contingent consideration is not within the
scope of IAS 39, it is measured in accordance with the appropriate IFRS. Contingent consideration that is classified as
equity is not remeasured and subsequent settlement is accounted for within equity.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount
recognised for non-controlling interest over the net identifable assets acquired and liabilities assumed. If the fair value of the net
assets acquired is in excess of the aggregate consideration transferred, the gain is recognised in proft or loss.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment
testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Groups cash-
generating units that are expected to beneft from the combination, irrespective of whether other assets or liabilities of the
acquiree are assigned to those units.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill
associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or
loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the
operation disposed of and the portion of the cash-generating unit retained.
(b) Property, plant and equipment
Except for freehold land and buildings, property, plant and equipment is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such cost includes the cost of replacing part of the property, plant and equipment and
borrowing costs for long-term construction projects if the recognition criteria are met. When signifcant parts of property, plant
and equipment are required to be replaced at intervals, the Group recognises such parts as individual assets with specifc useful
lives and depreciates them accordingly. Likewise, when a major inspection is performed, its cost is recognised in the carrying
amount of the plant and equipment as a replacement if the recognition criteria are satisfed. All other repair and maintenance
costs are recognised in proft or loss as incurred.
Freehold land and buildings are measured at fair value less accumulated depreciation on buildings and impairment losses
recognised at the date of the revaluation. Valuations are performed frequently to ensure that the fair value of a revalued asset
does not differ materially from its carrying amount with suffcient frequency.
2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contd)
(b) Property, plant and equipment (Contd)
Any revaluation surplus is recorded in other comprehensive income and hence, credited to the asset revaluation reserve in
equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in proft or loss, in
which case, the increase is recognised in proft or loss. A revaluation defcit is recognised in proft or loss, except to the extent
that it offsets an existing surplus on the same asset recognised in the asset revaluation reserve.
Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained earnings.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:
%
Buildings 2 to 5
Leasehold properties Over lease period
Plant and equipment 10 to 33
Motor vehicles 20
An item of property, plant and equipment and any signifcant part initially recognised is derecognised upon disposal or when
no future economic benefts are expected from its use or disposal. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in proft or
loss when the asset is derecognised.
Leasehold properties are not capitalised and the lease payments are charged to proft or loss on an accrual basis. Upfront
payments on leasehold properties are capitalised and amortised over the lease period.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each fnancial
year end and adjusted prospectively, if appropriate.
(c) Investment properties
Investment properties are initially measured at cost, including transaction costs. The cost includes the cost of replacing part
of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of
day-to-day servicing of an investment property. Subsequently the investment properties are stated at historical cost less
accumulated depreciation and any impairment in value.
Investment properties are derecognised when either they have been disposed of or when they are permanently withdrawn from
use and no future economic beneft is expected from their disposal. The difference between the net disposal proceeds and the
carrying amount of the asset is recognised in proft or loss in the period of derecognition.

Transfers are made to or from investment property only when there is a change in use. For a transfer from investment property to owner-
occupied property, the deemed cost for subsequent accounting is the cost less depreciation at the date of transfer. If owner-occupied
property becomes an investment property, the Group accounts for such property in accordance with the policy stated under property,
plant and equipment up to the date of change in use.
Depreciation is calculated on the straight-line method at a rate of 2% to 5% per annum.
(d) Biological assets
Bearer biological assets
Bearer biological assets comprising of sugar cane ratoons and plantation costs are capitalised and amortised over the period
during which the Group expects to beneft from the asset, usually seven years.
Consumable biological assets
Consumable biological assets represent standing cane and plants and are stated at fair value. The fair value is measured as
the expected net cash fows from the sale of the cane and plants discounted at the relevant market determined pre-tax rate.
(e) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a
business combination is their fair value as at the date of acquisition. Following initial recognition, intangible assets are carried
at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets,
excluding capitalised development costs, are not capitalised and expenditure is refected in the proft or loss in the year in which
the expenditure is incurred.
The useful lives of intangible assets are assessed to be either fnite or indefnite.

Intangible assets with fnite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication
that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a fnite useful
life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption
of future economic benefts embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are
treated as changes in accounting estimates. The amortisation expense on intangible assets with fnite lives is recognised in proft or loss
in the expense category consistent with the function of the intangible asset.
Intangible assets with indefnite useful lives are not amortised, but are tested for impairment annually, either individually or at the
cash-generating unit level. The assessment of indefnite life is reviewed annually to determine whether the indefnite life continues
to be supportable. If not, the change in useful life from indefnite to fnite is made on a prospective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in proft or loss when the asset is derecognised.
Intangible assets include software, which is amortised using the straight line method over 6 years.
(f) Investment in subsidiaries
Subsidiaries are those entities in which the Group has an interest of more than one half of the voting rights or otherwise has
power to govern the fnancial and operating policies to obtain benefts. The existence and effect of potential voting rights that
are presently exercisable or presently convertible are considered when assessing whether the Group controls another entity.
Separate fnancial statements
Investments in subsidiaries in the separate fnancial statements of the Company are carried at cost, net of any impairment.
Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately
to its recoverable amount and the difference is recognised in proft or loss. Upon disposal of the investment, the difference
between the net disposal proceeds and the carrying amount is recognised in proft or loss.
(g) Investment in associates
The Groups investment in its associates is accounted for using the equity method. An associate is an entity in which the Group has
signifcant infuence.
Under the equity method, the investment in the associates is initially recognised at cost. The carrying amount of the investment
is adjusted to recognise the Groups share of net assets of the associates since the acquisition date. Goodwill relating to the
associates is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment.
(g) Investment in associates (Contd)
The Groups share of the results of operations of the associates is refected in proft or loss. Where there has been a change recognised
directly in equity of the associates, the Group recognises its share of any changes and discloses this, when applicable, in the statement
of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associates are eliminated
to the extent of the interest in the associate.
The share of proft of associates is shown on the face of the statement of comprehensive income. This is the proft attributable
to equity holders of the associate and therefore is proft after tax and non-controlling interests in the subsidiaries of the
associate.
The fnancial statements of the associates are prepared for the same reporting period as the Group. When necessary, adjustments
are made to bring the accounting policies in line with those of the Group.
After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on
its investment in its associates. The Group determines, at each reporting date, whether there is any objective evidence that
the investment in the associates is impaired. If there is such evidence, the Group calculates the amount of impairment as the
difference between the recoverable amount of the associates and their carrying value and recognises the amount in the share
of losses of associates in statement of comprehensive income.
Upon loss of signifcant infuence over the associates, the Group measures and recognises any retaining investment at its fair
value. Any difference between the carrying amount of the associates upon loss of signifcant infuence and the fair value of the
retaining investment and proceeds from disposal is recognised in proft or loss.
In the Companys separate fnancial statements, investment in associates is stated at cost. The carrying amount is reduced to
recognise any impairment in the value of the investment.
(h) Foreign currency translation
The fnancial statements of the Group and the Company are presented in Mauritian rupees, which is also the parents functional
currency. Each entity in the Group determines its own functional currency and items included in the fnancial statements of each
entity are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Groups entities at their respective functional currency spot rates
the date the transaction frst qualifes for recognition.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rate of
exchange ruling at the reporting date.
Differences arising on settlement or translation of monetary items are taken to proft or loss with the exception of monetary items
that are designated as part of the hedge of the Groups net investment of a foreign operation. These are recognised in other
comprehensive income until the net investment is disposed, at which time, the cumulative amount is reclassifed to proft or loss.
Tax charges and credits attributable to exchange differences on those monetary items are also recorded in other comprehensive
income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates
as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value is determined. The gain or loss arising on retranslation of non-monetary
items is treated in line with the recognition of gain or loss on change in fair value of the item (i.e., translation differences on
items whose fair value gain or loss is recognised in other comprehensive income or proft or loss is also recognised in other
comprehensive income or proft or loss, respectively).
Prior to January 1, 2005, the Group treated goodwill and any fair value adjustments to the carrying amounts of assets and
liabilities arising on the acquisition, as assets and liabilities of the parent. Therefore, those assets and liabilities are already
expressed in the reporting currency or are non-monetary items and hence no further translation differences occur.
Group companies
On consolidation, the assets and liabilities of foreign operations are translated into Mauritian rupees at the rate of exchange
prevailing at the reporting date and proft or loss is translated at exchange rates prevailing at the date of the transactions.
The exchange differences arising on the translation are recognised in other comprehensive income. On disposal of a foreign
operation, the component of other comprehensive income relating to that particular foreign operation is recognised in the
proft or loss.
Any goodwill arising on the acquisition of a foreign operation subsequent to January 1, 2005 and any fair value adjustments to
the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation
and translated at the closing rate.
(i) Financial assets
Initial recognition and measurement
Financial assets within the scope of IAS 39 are classifed as fnancial assets at fair value through proft or loss, loans and
receivables, held-to-maturity investments, available-for-sale fnancial assets, or as derivatives designated as hedging instruments
in an effective hedge, as appropriate. The Group determines the classifcation of its fnancial assets at initial recognition.
All fnancial assets are recognised initially at fair value plus transaction costs, except in the case of fnancial assets at fair value
through proft or loss.
Purchases or sales of fnancial assets that require delivery of assets within a time frame established by regulation or convention
in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase
or sell the asset.
The Groups fnancial assets include cash at bank and on hand, trade and other receivables, loans and other receivables and
quoted and unquoted fnancial instruments.
Subsequent measurement
The subsequent measurement of fnancial assets depends on their classifcation as follows:
Loans and receivables
Loans and receivables are non-derivative fnancial assets with fxed or determinable payments that are not quoted in an active
market. After initial measurement, such fnancial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method, less impairment.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in fnance income. The losses arising from impairment are recognised in fnance
costs.
Available-for-sale fnancial investments
Available-for-sale fnancial investments include equity and debt securities. Equity investments classifed as available-for-sale are
those, which are neither classifed as held for trading nor designated at fair value through proft or loss. Debt securities in this
category are those which are intended to be held for an indefnite period of time and which may be sold in response to needs for
liquidity or in response to changes in the market conditions.
Available-for-sale fnancial investments (Contd)
After initial measurement, available-for-sale fnancial investments are subsequently measured at fair value with unrealised gains
or losses recognised as other comprehensive income in the available-for-sale reserve until the investment is derecognised, at
which time the cumulative gain or loss is recognised in other operating income, or the investment is determined to be impaired,
when the cumulative loss is reclassifed from the available-for-sale reserve to proft or loss. Interest earned whilst holding
available-for-sale investment is reported as interest income using the EIR method.
The Group evaluates whether the ability and intention to sell its available-for-sale fnancial assets in the near term is still appropriate.
When, in rare circumstances, the Group is unable to trade these fnancial assets due to inactive markets and managements intention
to do so signifcantly changes in the foreseeable future, the Group may elect to reclassify these fnancial assets. Reclassifcation to
loans and receivables is permitted when the fnancial assets meet the defnition of loans and receivables and the Group has the intent
and ability to hold these assets for the foreseeable future or until maturity. Reclassifcation to the held to maturity category is permitted
only when the entity has the ability and intention to hold the fnancial asset accordingly.
For a fnancial asset reclassifed from the available-for-sale category, the fair value carrying amount at the date of reclassifcation
becomes its new amortised cost and any previous gain or loss on the asset that has been recognised in equity is amortised to
proft or loss over the remaining life of the investment using the EIR. Any difference between the new amortised cost and the
maturity amount is also amortised over the remaining life of the asset using the EIR. If the asset is subsequently determined to be
impaired, then the amount recorded in equity is reclassifed to proft or loss.
Available-for-sale equity instruments that do not have a quoted market price in an active market and whose fair value cannot be
reliably measured are stated at cost less any impairment losses.
Derecognition
A fnancial asset (or, where applicable a part of a fnancial asset or part of a group of similar fnancial assets) is derecognised
when:
The rights to receive cash fows from the asset have expired.
The Group has transferred its rights to receive cash fows from the asset or has assumed an obligation to pay the received
cash fows in full without material delay to a third party under a pass-through arrangement; and either (a) the Group
has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group has transferred its rights to receive cash fows from an asset or has entered into a pass-through arrangement, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the asset is recognised to the extent of the
Groups continuing involvement in the asset. In that case, the Group also recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that refects the rights and obligations that the Group has retained. Continuing
involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount
of the asset and the maximum amount of consideration that the Group could be required to repay.
(j) Impairment of fnancial assets
The Group assesses, at each reporting date, whether there is objective evidence that a fnancial asset or a group of fnancial
assets is impaired. A fnancial asset or a group of fnancial assets is deemed to be impaired if, and only if, there is objective
evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred
loss event) and that loss event has an impact on the estimated future cash fows of the fnancial asset or the group of fnancial
assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is
experiencing signifcant fnancial diffculty, default or delinquency in interest or principal payments, the probability that they will
enter bankruptcy or other fnancial reorganisation and where observable data indicate that there is a measurable decrease in
the estimated future cash fows, such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortised cost
For fnancial assets carried at amortised cost, the Group frst assesses whether objective evidence of impairment exists
individually for fnancial assets that are individually signifcant, or collectively for fnancial assets that are not individually
signifcant. If the Group determines that no objective evidence of impairment exists for an individually assessed fnancial
asset, whether signifcant or not, it includes the asset in a group of fnancial assets with similar credit risk characteristics and
collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss
is, or continues to be, recognised are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference
between the assets carrying amount and the present value of estimated future cash fows (excluding future expected credit
losses that have not yet been incurred). The present value of the estimated future cash fows is discounted at the fnancial assets
original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the
current effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in
proft or loss. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest
used to discount the future cash fows for the purpose of measuring the impairment loss. The interest income is recorded as part
of fnance income in the statement of comprehensive income. Loans together with the associated allowance are written off when
there is no realistic prospect of future recovery and all collateral has been realised or has been transferred to the Group. If,
in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after
the impairment was recognised, the previously recognised impairment loss is increased or reduced by adjusting the allowance
account. If a write-off is later recovered, the recovery is credited in proft or loss.
Available-for-sale fnancial investments
For available-for-sale fnancial investments, the Group assesses at each reporting date whether there is objective evidence that
an investment or a group of investments is impaired.
In the case of equity investments classifed as available-for-sale, objective evidence would include a signifcant or prolonged
decline in the fair value of the investment below its cost. Signifcant is evaluated against the original cost of the investment and
prolonged against the period in which the fair value has been below its original cost. Where there is evidence of impairment,
the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment
loss on that investment previously recognised in proft or loss is removed from other comprehensive income and recognised in
proft or loss. Impairment losses on equity investments are not reversed through proft or loss; increases in their fair value after
impairment are recognised directly in other comprehensive income.
In the case of debt instruments classifed as available-for-sale, impairment is assessed based on the same criteria as fnancial
assets carried at amortised cost. However, the amount recorded for impairment is the cumulative loss measured as the difference
between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in
proft or loss.
Future interest income continues to be accrued based on the reduced carrying amount of the asset, using the rate of interest
used to discount the future cash fows for the purpose of measuring the impairment loss. The interest income is recorded as part
of fnance income. If, in a subsequent year, the fair value of a debt instrument increases and the increase can be objectively
related to an event occurring after the impairment loss was recognised in proft or loss, the impairment loss is reversed through
proft or loss.
If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair value because
its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an
unquoted equity instrument has been incurred, the amount of the loss is measured as the difference between the assets carrying
amount and the present value of estimated future cash fows discounted at the current market rate of return for a similar fnancial
asset.
(k) Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IAS 39 are classifed as fnancial liabilities at fair value through proft or loss, loans and
borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Group determines
the classifcation of its fnancial liabilities at initial recognition. All fnancial liabilities are recognised initially at fair value and
in the case of loans and borrowings, plus directly attributable transaction costs.
The Groups fnancial liabilities include trade and other payables, bank overdrafts, loans and borrowings.
Subsequent measurement
The measurement of fnancial liabilities depends on their classifcation as follows:
Loans and borrowings
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Gains and losses are recognised in proft or loss when the liabilities are derecognised as well as
through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in fnance costs in statement of comprenhensive income.
Derecognition
A fnancial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing fnancial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modifed, such an exchange or modifcation is treated as a derecognition of the original liability and
the recognition of a new liability, and the difference in the respective carrying amounts is recognised in proft or loss.
(l) Offsetting of fnancial instruments
Financial assets and fnancial liabilities are offset and the net amount is reported in the consolidated and separate statements
of fnancial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.
(m) Inventories
Inventory items are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and conditions are accounted for using average cost method.
Net realisable value (NRV) is the estimated selling price in the ordinary course of business, less estimated costs of completion
and the estimated costs necessary to make the sale.
Work-in-progress consists of cost incurred on works performed but not yet completed and invoiced at the reporting date.
(n) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that
an outfow of resources embodying economic benefts will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating
to any provision is presented in proft or loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that refects, where
appropriate, the risks specifc to the liability. Where discounting is used, the increase in the provision due to the passage of
time is recognised as a fnance cost.
(o) Retirement beneft obligations
Defned beneft plan
The Group operates a fnal salary defned beneft plan, the assets of which are held independently and administered by the
Anglo-Mauritius Assurance Society Limited. The cost of providing pensions under the plan is determined using the projected unit
credit actuarial valuation method. Actuarial gains and losses are recognised as income or expense when the net cumulative
unrecognised actuarial gains and losses at the end of the previous reporting period exceeded 10% of the higher of the defned
beneft obligation and the fair value of plan assets at that date. These gains or losses are recognised over the expected average
remaining working lives of the employees participating in the plan.
The past service costs are recognised as an expense on a straight line basis over the average period until the benefts become
vested. If the benefts have already vested, immediately following the introduction of, or changes to, a pension plan, past service
costs are recognised immediately.

The defned beneft asset or liability comprises the present value of the defned beneft obligation (using a discount rate
based on high quality corporate bonds), less past service costs not yet recognised and less the fair value of plan assets
out of which the obligations are to be settled. Plan assets are assets that are held by a long-term employee beneft fund
or qualifying insurance policies. Plan assets are not available to the creditors of the Group nor can they be paid directly
to the Group. Fair value is based on market price information and in the case of quoted securities it is the published
bid price. The value of any plan asset recognised is restricted to the sum of any past service costs not yet recognised
and the present value of any economic benefts available in the form of refunds from the plan or reductions in the future
contributions to the plan.
Severance allowance on retirement
For employees that are not covered under any pension plan, the net present value of severance allowances payable under the Employee
Rights Act 2008 is calculated independently by a qualifed actuary, AON Hewitt Ltd. The expected cost of these benefts is accrued over
the service lives of employees on a similar basis to that for the defned beneft plan. The present value of severance allowances has been
disclosed as unfunded obligations under employee beneft liability.
(p) Cash and cash equivalents
Cash at banks and in hand in the statement of fnancial position are measured at amortised cost.
For the purpose of the statement of cash fows, cash and cash equivalents consist of cash at bank and in hand net of outstanding
bank overdrafts.
(q) Impairment of non-fnancial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Group estimates the assets recoverable amount. An
assets recoverable amount is the higher of an assets or cash-generating units (CGU) fair value less costs to sell and its value
in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash infows that are
largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
(q) Impairment of non-fnancial assets (Contd)
In assessing value in use, the estimated future cash fows are discounted to their present value using a pre-tax discount rate
that refects current market assessments of the time value of money and the risks specifc to the asset. In determining fair value
less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identifed, an
appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for
publicly traded subsidiaries or other available fair value indicators.
The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for
each of the Groups CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover
a period of fve years. For longer periods, a long-term growth rate is calculated and applied to project future cash fows after
the ffth year.
Impairment losses of continuing operations, including impairment on inventories, are recognised in proft or loss in expense
categories consistent with the function of the impaired asset, except for a property previously revalued when the revaluation
was taken to other comprehensive income. In this case, the impairment is also recognised in other comprehensive income up
to the amount of any previous revaluation.
For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the
assets or cash-generating units recoverable amount. A previously recognised impairment loss is reversed only if there has been
a change in the assumptions used to determine the assets recoverable amount since the last impairment loss was recognised.
The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior
years. Such reversal is recognised in proft or loss.
The following criteria are also applied in assessing impairment of specifc assets:
Goodwill
Goodwill is tested for impairment annually at the reporting date, and when circumstances indicate that the carrying value may be
impaired. Impairment is determined for goodwill by assessing the recoverable amount of each cash-generating unit (or group of
cash-generating units) to which the goodwill relates. Where the recoverable amount of the cash generating unit is less than their
carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.
Intangible assets
Intangible assets with indefnite useful lives are tested for impairment at each reporting date; either individually or at the cash-
generating unit level, as appropriate and when circumstances indicate that the carrying value may be impaired.
(r) Leases
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception
date, whether fulflment of the arrangement is dependent on the use of a specifc asset or assets or the arrangement conveys a
right to use the asset, even if that right is not explicitly specifed in an arrangement.
Group as a lessee
Finance leases that transfer substantially all the risks and benefts incidental to ownership of the leased item to the Group, are
capitalised at the commencement of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum
lease payments. Lease payments are apportioned between fnance charges and reduction of the lease liability so as to achieve
a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in fnance costs in statement
of comprehensive income.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will
obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset
and the lease term.
Operating lease payments are recognised as an operating expense in proft or loss on a straight-line basis over the lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and benefts of ownership of the asset are classifed as
operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased
asset and recognised over the lease term on the same bases as rental income. Contingent rent are recognised as revenue in
the period in which they are earned.
(s) Revenue
Revenue is recognised to the extent that it is probable that the economic benefts will fow to the Group and
the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value
of the consideration received or receivable, taking into account contractually defned terms of payment and excluding taxes or
duty. The Group assesses its revenue arrangements against specifc criteria to determine if it is acting as principal or agent. The
Group has concluded that it is acting as a principal in all of its revenue arrangements. The specifc recognition criteria described
below must also be met before revenue is recognised.
Sales of goods
Revenue is recognised when the signifcant risks and rewards of ownership of the goods have passed to the buyer and the
amount of revenue can be measured reliably.
Rendering of services
Revenue from rendering of services is recognised by reference to the stage of completion. When the contract outcome cannot
be measured reliably, revenue is recognised to the extent that the expenses incurred are eligible to be recovered.
Sales of sugar
Revenue from sugar is recognised based on amount produced and delivered on a sugar price based on the recommendation
of the Mauritius Chamber of Agriculture after consultation with the Mauritius Sugar Syndicate.
Interest income
For all fnancial instruments measured at amortised cost and interest bearing fnancial assets classifed as available for
sale, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated
future cash payments or receipts over the expected life of the fnancial instrument or a shorter period, where appropriate,
to the net carrying amount of the fnancial asset or liability. Interest income is included in fnance income in the statement of
comprehensive income.

Dividend income
Dividend income is recognised when the Groups right to receive the payment is established.
Rental income
Rental income arising from investment properties under operating leases is accounted for on a straight-line basis over the term
of the lease, except for contingent rental income which is recognised when it arises.
(t) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets. All other
borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs
in connection with the borrowing of funds.
(u) Taxes
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the reporting date, in the countries where the Group operates and generates taxable income.
Current income tax relating to items recognised directly in other comprehensive income or equity is recognised in other
comprehensive income or equity and not in proft or loss. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred income tax
Deferred income tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for fnancial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that
is not a business combination and, at the time of the transaction, affects neither the accounting proft nor taxable proft or
loss; and
in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will be reversed in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused
tax losses. Deferred tax asset are recognised to the extent that it is probable that taxable proft will be available against which
the deductible temporary differences, and the carry-forward of unused tax credits and unused tax losses can be utilised except:
where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither
the accounting proft nor taxable proft or loss; and
in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse
in the foreseeable future and taxable proft will be available against which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that suffcient taxable proft will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has
become probable that future taxable proft will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside proft or loss is recognised outside proft or loss. Deferred tax items are
recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current
tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same
taxation authority.
Tax benefts acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date,
are recognised subsequently if new information about facts and circumstances change. The adjustment is either treated as a
reduction to goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement period or recognised
in proft or loss.
Value Added Tax
Revenues, expenses and assets are recognised net of the amount of value added tax except:
where the value added tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
which case the value added tax is recognised as part of the cost of acquisition of the asset or as part of the expense item
as applicable; and
receivables and payables that are stated with the amount of value added tax included.
The net amount of value added tax recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the statement of fnancial position.
Alternative Minimum Tax
Alternative Minimum Tax (AMT) is provided for, where the Group which has a tax liability of less than 7.5% of its book proft
pays a dividend. AMT is calculated as the lower of 10% of the dividend paid and 7.5% of book proft.
Corporate Social Responsibility
In line with the defnition within the Income Tax Act 1995, Corporate Social Responsibility (CSR) is regarded as a tax and is
therefore subsumed with the income tax shown within the statement of comprehensive income and the income tax liability on
the statement of fnancial position.
The CSR charge for the current period is measured at the amount expected to be paid to the Mauritian tax authorities. The CSR
rate and laws used to compute the amount are those charged or substantively enacted by the reporting date.
(v) Fair value of fnancial instruments
The fair value of fnancial instruments that are traded in active markets at each reporting date is determined by reference to
quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any
deduction for transaction costs.
For fnancial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such
techniques may include:
Using recent arms length market transactions
Reference to the current fair value of another instrument that is substantially the same
A discounted cash fow analysis or other valuation models.
(w) Segmental reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks
and returns that are different from those of other business segments. The Groups business segments consist of core business
activities, retail and agriculture. Most of its activity is performed in Mauritius.
2.4 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

New and amended standards and interpretations
The accounting policies adopted are consistent with those of the previous fnancial year, except for the following amendments
to IFRS effective as of July 1, 2012:
IAS 12 Income Taxes (Amendment) Deferred Taxes: Recovery of Underlying Assets
IAS 1 Financial Statement Presentation (Amendments) Presentation of Items of Other Comprehensive Income
The adoption of the standards or interpretations is described below:
IAS 12 Income Taxes (Amendment) Deferred Taxes: Recovery of Underlying Assets

The amendment clarifed the determination of deferred tax on investment property measured at fair value and introduces a
rebuttable presumption that deferred tax on investment property measured using the fair value model in IAS 40 should be
determined on the basis that its carrying amount will be recovered through sale. It includes the requirement that deferred tax on
non-depreciable assets that are measured using the revaluation model in IAS 16 should always be measured on a sales basis.
The amendment is effective for annual periods beginning on or after January 1, 2012 and has no effect on the Groups fnancial
position, performance or its disclosures.
IAS 1 Financial Statement Presentation (Amendments) Presentation of Items of Other Comprehensive
Income
The amendments to IAS 1 change the grouping of items presented in other comprehensive income (OCI). Items that will never
be reclassifed (or recycled) to proft or loss at a future point in time (for example, actuarial gains and losses on defned
beneft plans and revaluation of land and buildings) need to be presented separately from items that could be reclassifed (for
example, net gain on hedge of net investment, exchange differences on translation of foreign operations, net movement on cash
fow hedges and net loss or gain on available-for-sale fnancial assets). The amendment has been refected in the statement of
comprehensive income but has no impact on the fnancial position or performance.
2.5 STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Groups fnancial
statements are disclosed below. The Group intends to adopt these standards, if applicable, when they become effective.
Effective for accounting
period beginning on
or after
New or revised standards

- IAS 19 Employee Benefts (Revised) January 1, 2013
- IAS 28 Investments in Associates and Joint Ventures (as revised in 2011) January 1, 2013
- IFRS 9 Financial Instruments: Classifcation and Measurement January 1, 2015
- IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements January 1, 2013
- IFRS 11 Joint Arrangements January 1, 2013
- IFRS 12 Disclosures of Interests in Other Entities January 1, 2013
- IFRS 13 Fair Value Measurement January 1, 2013
- IAS 32 Financial Instruments: Presentation - Offsetting Financial Assets
and Financial Liabilities January 1, 2014
- IAS 36 Impairment of Assets Amendments January 1, 2014
- IFRS 1 Government Loans Amendments to IFRS 1 January 1, 2013
- IFRS 7 Disclosures - Offsetting Financial Assets and Financial Liabilities -
Amendments to IFRS 7 January 1, 2013

Effective for accounting
period beginning on
or after
New or revised standards (Contd)
- Consolidated Financial Statements , Joint Arrangements and Disclosure of Interests
in Other Entities: Transition Guidance January 1, 2013
- Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) January 1, 2014
- Annual Improvements May 2012 January 1, 2013

Interpretations

- IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine January 1, 2013
- IFRIC 21 Levies January 1, 2014
The effects of these standards, interpretations and amendments are described below:
IAS 19 Employee Benefts (Revised)
Numerous changes to IAS 19 have been made. The two most signifcant of these relates frstly to short and long-term benefts
that will now be distinguished based on the expected timing of settlement, rather than employee entitlement. The second item
relates to the corridor mechanism for pension plans being removed. This means all changes in the value of defned beneft
plans will be recognised as they occur. The impacts of the amendments to defned beneft plan and short-term employee benefts
have not yet been assessed.
IAS 28 Investments in Associates and Joint Ventures (as revised in 2011)
As a consequence of the new IFRS 11 Joint Arrangements, and IFRS 12 Disclosure of Interests in Other Entities, IAS 28
Investments in Associates, has been renamed IAS 28 Investments in Associates and Joint Ventures, and describes the application
of the equity method to investments in joint ventures in addition to associates. These amendments are not expected to impact the
Groups fnancial position or performance.
IFRS 9 Financial Instruments: Classifcation and Measurement
IFRS 9, as issued, refects the frst phase of the IASBs work on the replacement of IAS 39 and applies to classifcation and
measurement of fnancial assets and fnancial liabilities as defned in IAS 39. The standard was initially effective for annual
periods beginning on or after January 1, 2013, but Amendments to IFRS 9 Mandatory Effective Date of IFRS 9 and Transition
Disclosures, issued in December 2011, moved the mandatory effective date to January 1, 2015. In subsequent phases, the
IASB will address hedge accounting and impairment of fnancial assets. The Group will quantify the effect in conjunction with
the other phases, when the fnal standard including all phases is issued.
IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements
IFRS 10 replaces the portion of IAS 27 Consolidated and Separate Financial Statements that addresses the accounting for
consolidated fnancial statements. It also addresses the issues raised in SIC-12 Consolidation - Special Purpose Entities.
IFRS 10 establishes a single control model that applies to all entities including special purpose entities. The changes introduced
by IFRS 10 will require management to exercise signifcant judgement to determine which entities are controlled and therefore
are required to be consolidated by a parent, compared with the requirements that were in IAS 27. IFRS 10 is not expected to
have any impact on the fnancial position and performance of the Group.
2.5 STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE (Contd)
IFRS 11 Joint Arrangements
IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities Non-monetary Contributions by
Venturers. IFRS 11 removes the option to account for jointly controlled entities (JCEs) using proportionate consolidation. Instead,
JCEs that meet the defnition of a joint venture must be accounted for using the equity method. IFRS 11 is not expected to have
any impact on the Group as the Group does not have any joint arrangements..
IFRS 12 Disclosure of Interests in Other Entities
IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated fnancial statements, as well as
all of the disclosures that were previously included in IAS 31 and IAS 28. These disclosures relate to an entitys interests in
subsidiaries, joint arrangements, associates and structured entities. IFRS 12 will result in more disclosures to be given.
IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when
an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value
is required or permitted. The Group is currently assessing the impact that this standard will have on the fnancial position and
performance, but based on the preliminary analyses, no material impact is expected.
IAS 32 Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32
These amendments clarify the meaning of currently has a legally enforceable right to set-off. The amendments also clarify the
application of the IAS 32 offsetting criteria to settlement systems (such as central clearing house systems) which apply gross settlement
mechanisms that are not simultaneous. These amendments are not expected to impact the Groups fnancial position or performance.
IAS 36 Impairment of Assets
The IASB has issued narrow-scope amendments to IAS 36 on 29 May 2013. The overall effect of the amendments is to reduce
the circumstances in which the recoverable amount of assets or cash-generating units is required to be disclosed, clarify the
disclosures required, and to introduce an explicit requirement to disclose the discount rate used in determining impairment (or
reversals) where recoverable amount (based on fair value less costs of disposal) is determined using a present value technique.
These amendments are not expected to impact the Groups fnancial position or performance.
IFRS 1 Government Loans Amendments to IFRS 1
These amendments require frst-time adopters to apply the requirements of IAS 20 Accounting for Government Grants and
Disclosure of Government Assistance, prospectively to government loans existing at the date of transition to IFRS. Entities may
choose to apply the requirements of IFRS 9 (or IAS 39, as applicable) and IAS 20 to government loans retrospectively if the
information needed to do so had been obtained at the time of initially accounting for that loan.
The exception would give frst-time adopters relief from retrospective measurement of government loans with a below-market rate
of interest but does not impact the Group.
IFRS 7 Disclosures Offsetting Financial Assets and Financial Liabilities Amendments to IFRS 7
These amendments require an entity to disclose information about rights to set-off and related arrangements (e.g., collateral
agreements). The disclosures would provide users with information that is useful in evaluating the effect of netting arrangements
on an entitys fnancial position. The new disclosures are required for all recognised fnancial instruments that are set off in
accordance with IAS 32 Financial Instruments: Presentation. The disclosures also apply to recognised fnancial instruments
that are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are set off in
accordance with IAS 32. These amendments will not impact the Groups fnancial position or performance.
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities:
Transition Guidance
On 28 June 2012, the IASB issued Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests
in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12). The amendments provide
additional transition relief in IFRS 10, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other
Entities, limiting the requirement to provide adjusted comparative information to only the preceding comparative
period. Furthermore, for disclosures related to unconsolidated structured entities, the amendments will remove the
requirement to present comparative information for periods before IFRS 12 is first applied. The effective date of the
amendments is annual periods beginning on or after 1 January 2013, which is aligned with the effective date of
IFRS 10, 11 and 12.
Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
The application guidance to IFRS 10 clarifies that an entity must consider all facts and circumstances when assessing
whether it is an investment entity, including its purpose and design. An entity must meet all three elements of the
definition to be an investment entity to obtain exemption from preparing consolidated financial statements. In other
words, it does not consolidate its subsidiaries and does not apply IFRS 3 Business Combinations when it obtains control
of an entity. Instead, an investment entity is required to measure subsidiaries at fair value through profit or loss in
accordance with IAS 39. However, if an investment entity has a subsidiary that provides investment-related services,
such as investment management services, to the entity or other parties, then the investment entity must consolidate its
subsidiary. The amendment applies for annual periods beginning on or after 1 January 2014, with earlier application
permitted.
Annual Improvements May 2012
These improvements, which are listed below are effective for annual periods beginning or after January 1, 2013 and is not
expected to have a signifcant impact on the Group:
IFRS 1 First-time Adoption of International Financial Reporting Standards
This improvement clarifes that an entity that stopped applying IFRS in the past and chooses, or is required, to apply IFRS, has
the option to re-apply IFRS 1. If IFRS 1 is not re-applied, an entity must retrospectively restate its fnancial statements as if it had
never stopped applying IFRS.
IAS 1 Presentation of Financial Statements
This improvement clarifes the difference between voluntary additional comparative information and the minimum required
comparative information. Generally, the minimum required comparative information is the previous period.
IAS 16 Property Plant and Equipment
This improvement clarifes that major spare parts and servicing equipment that meet the defnition of property, plant and
equipment are not inventory.
IAS 32 Financial Instruments, Presentation
This improvement clarifes that income taxes arising from distributions to equity holders are accounted for in accordance with IAS
12 Income Taxes.
IAS 34 Interim Financial Reporting
The amendment aligns the disclosure requirements for total segment assets with total segment liabilities in interim fnancial
statements. This clarifcation also ensures that interim disclosures are aligned with annual disclosures.
2.5 STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE (Contd)
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
This interpretation applies to waste removal (stripping) costs incurred in surface mining activity, during the production phase of
the mine. The interpretation addresses the accounting for the beneft from the stripping activity. The new interpretation will not
have an impact on the Group.
IFRIC 21 Levies
IFRIC 21 identifes the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in
accordance with the relevant legislation. The Interpretation clarifes that economic compulsion and the going concern principle
do not create or imply that an obligating event has occurred.
IFRIC 21 provides the following guidance on recognition of a liability to pay levies:
The liability is recognised progressively if the obligating event occurs over a period of time; and
If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is
reached.
No early adoption of these standards, interpretations and amendments is intended by the Board of directors.
3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the consolidated and separate fnancial statements requires management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount
of the asset or liability affected in future periods.
Judgements
In the process of applying the Groups accounting policies, management has made the following judgments, which have the
most signifcant effect on the amounts recognised in the consolidated fnancial statements:
Operating Lease Commitments - Group as Lessee
The entity has entered into leases for motor vehicles and plant and equipment. The Group has classifed these leases as
operating leases where it has determined that it does not retain all the signifcant risks and rewards of ownership of these assets.
Capitalisation of spares parts
Spare parts and servicing equipment which have an expected life of more than one year, usually in connection to the life of specifc
item of property, plant and equipment are classifed as property, plant and equipment. They are depreciated over the shorter of the
life of the spare or the item of property, plant and equipment they are attached to. All other spares are recognised as inventories
and expensed in proft of loss upon consumption.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
signifcant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fnancial year, are
described below. The Group based its assumptions and estimates on parameters available when the fnancial statements were
prepared. Existing circumstances and assumptions about future developments however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are refected in the assumptions when they occur.
Useful lives and residual values of property, plant and equipment
Determining the carrying amounts of property, plant and equipment requires the estimation of the useful lives and residual
values of these assets which carry a degree of uncertainty. The directors have used historical information relating to the Group
and the relevant industries in which the Groups entities operate in order to best determine the useful lives and residual values
of property, plant and equipment.

Revaluation of property, plant and equipment
The Group measures land and buildings at revalued amounts with changes in fair value being recognised in other comprehensive
income. The fair values are determined by independent professional valuers by reference to market-based evidence, using
comparable prices adjusted for specifc market factors such as nature, location and condition of the properties.
Valuation of standing cane
The fair value of biological assets is based on the estimated net present value of future cash fows for the coming crop. Standing
cane valuation has been arrived based on an estimate of the future cash fows arising on a normal crop with sugar proceeds
being adjusted for the drop in sugar price as well as estimated foreign currency movements and budgeted costs and applying
a suitable discount rate in order to calculate the net present value.
Valuation of plants
The fair value of plants is based on the estimated net present value of future cash fows for the coming crops. Standing plants
has been arrived at based on an estimated of the future cash fows arising on a normal crop less budgeted costs discounted at
a suitable rate in order to calculate the net present value.
Allowance for doubtful debts
An allowance for doubtful debts is determined using a combination of factors to ensure that the trade receivables are not
overstated due to uncollectibility. The allowance for doubtful debts for all customers is based on a variety of factors, including the
overall quality and ageing of the receivables, continuing credit evaluation of the customers fnancial conditions. Also, specifc
provisions for individual accounts are recorded when the Group becomes aware of the customers inability to meet its fnancial
obligation such as in the case of deterioration in the customers operating results or fnancial position.
Estimated impairment of goodwill
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which
goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash fows expected to arise
from the cash generating units and a suitable discount rate in order to calculate present value.
3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Contd)

Pension benefts

The cost of defned beneft pension plans and the present value of pension obligation are determined using actuarial valuations.
The actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary
increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions
and its long-term nature, a defned beneft obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date. Further details are given in Note 20.
Fair value of fnancial instruments

Where the fair value of fnancial assets and fnancial liabilities recorded in the statement of fnancial position cannot be derived
from active markets, their fair value is determined using valuation techniques including the discounted cash fow model. The
inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is
required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect the reported fair value of fnancial instruments.
Recognition of deferred tax assets
Deferred tax assets are recognised for all unused tax losses to the extent that is probable that taxable proft will be available
against which losses can be utilised. Signifcant management judgement is required to determine the amount of deferred tax
assets that can be recognised, based upon the likely timing and level of future taxable profts together with future tax planning
strategies.
4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Groups principal fnancial liabilities comprise bank loans and overdrafts, fnance leases, loan from shareholders and, trade
and payables. The main purpose of these fnancial liabilities is to fnance the Groups operations. The Group has loan and other
receivables, trade and other receivables, and cash at bank and in hand that arise directly from its operations. The Group also
holds available-for-sale investments.
The Group is exposed to market risk, credit risk and liquidity risk. The Groups senior management oversees the management
of these risks. Senior management ensures that the Groups fnancial risk-taking activities are governed by appropriate policies
and procedures and that fnancial risks are identifed, measured and managed in accordance with group policies and group
risk objectives.
A description of the various risks to which the Group is exposed is shown below as well as the approach taken by management
to control and mitigate those risks.
(a) Market risk
Market risk is the risk that the fair value of future cash fows of a fnancial instrument will fuctuate because of changes in market
prices. Market risk to which the Group is exposed comprises three types of risk: interest rate risk, foreign currency risk, and
equity price risk. Financial instruments affected by market risk include loans and borrowing, available-for-sale investments, and
trade and other payables.
The sensitivity analyses in the following sections relate to the position as at June 30, 2013 and 2012.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash fows of a fnancial instrument will fuctuate because of changes in
market interest rates. The Groups exposure to the risk of changes in market interest rates relates primarily to the Groups debt
obligations with foating interest rates.
The Groups income and operating cash fows are subject to the risks of changes in market interest rates. The Groups policy is
to manage its interest cost using a mix of fxed and variable rate debts.
Interest rate sensitivity
The following table demonstrates through the impact on foating rate borrowings the sensitivity of the Groups and the Companys
proft before tax to a reasonable possible change in interest rates with all other variables held constant. There is no impact on
the Groups and the Companys equity.
2013 2012 2013 2012
Increase/(decrease) in basis point Rs000 Rs000 Rs000 Rs000
+ 50 (4,776) (4,819) (4,748) (5,272)
- 25 2,388 2,410 2,374 2,636
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash fows of a fnancial instrument will fuctuate because of changes
in foreign exchange rates.
The Group has transactional currency exposures. Such exposure arises from sales or purchases by an operating unit in currencies
other than the unit of the functional currency. While revenue is generated principally in the functional currency, signifcant
expenditures are incurred in Euro and US Dollars. The Group does not have a policy to hedge against foreign currency risk.
Foreign currency sensitivity
The following table demonstrates due to changes in the fair value of monetary assets and liabilities the sensitivity of the Groups
proft before tax to a reasonably possible change in Euro and US Dollars exchange rates, with all other variables held constant.
There is no impact on the Groups equity.
THE GROUP
2013 2012
Increase/(decrease) in exchange rate Rs000 Rs000
Euro +5% (981) (481)
Euro -10% 1,961 963
THE GROUP
2013 2012
Increase/(decrease) in exchange rate Rs000 Rs000
US dollar +5% (124) (83)
US dollar -10% 248 166
South African Rand +5% (129) (68)
South African Rand -10% 258 137

At the reporting date, the Company did not have any signifcant fnancial assets and liabilities denominated in foreign currencies.
Equity price risk
The Groups listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future values
of the investment securities.
The following table demonstrates the impact of a reasonably possible change in the equity prices, with all other variables held
constant, on the Groups and the Companys proft before tax or equity, depending on whether the decline is signifcant or
prolonged
2013 2012 2013 2012
Increase/(decrease) in equity Rs000 Rs000 Rs000 Rs000
+ 5% 224 223 204 201
- 10% (114) (111) (102) (101)
(b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a fnancial instrument or customer contract, leading to a
fnancial loss. The Group is exposed to credit risk from its operating activities and from its fnancing activities, including trade and
other receivables and cash at bank.
Trade receivables
Customer credit risk is managed to the Groups established policy, procedures and control relating to customer credit risk
management. The Group has established internal policies to determine the credit worthiness and reliability of potential customers.
The requirement for impairment is analysed at each reporting date on an individual basis for balance more than one year. The
maximum exposure to credit risk at the reporting date is the carrying value of each class of fnancial assets disclosed in Note
16. The Group evaluates the concentration of risk with respect to trade receivables as low, as its customers are diversifed and
located in well established industries and markets.
Financial instruments and cash at bank
Credit risk from balances with banks and fnancial institutions is managed by the Groups treasury department in accordance
with the Groups policy. Counterparty credit limits are reviewed by the Groups Senior Management on an annual basis, and
may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate fnancial
loss through potential counterpartys failure. The Groups maximum exposure to credit risk for the components of the statement
of fnancial position is the carrying amounts.
(c) Liquidity risk
Liquidity risk refers to the possibility of default by the Group to meet its obligations because of unavailability of funds to meet
both operational and capital requirements. The Group monitors its risk to a shortage of funds using a recurring liquidity
planning tool. This tool considers the maturity of both its fnancial investments and fnancial assets (e.g. accounts receivables
and other fnancial assets), the maturity of its fnancial obligations and projected cash fows from operations. Moreover, the
Group has access to various types of funding like leasing, loans and share capital.
The following table summarises the maturity profle of the Groups and the Companys fnancial liabilities at June 30, based on
contractual undiscounted payment.
On demand Less than 3
months
3 to 12
months
1 to 5 years Above 5
years
Total
The Group Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At June 30, 2013
Interest bearing loans and borrowings 746,135 21,257 236,214 76,818 - 1,080,424
Trade and other payables 26,893 291,824 - - - 318,717
773,028 313,081 236,214 76,818 - 1,399,141
months
3 to 12
months
years
Total
The Group Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At June 30, 2013
Trade and other payables 17,669 285,313 - - - 302,982
748,479 309,731 188,754 253,005 - 1,499,970
months
3 to 12
months
years
Total
The Company Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At June 30, 2013
Interest bearing loans and borrowings 698,910 19,876 211,084 45,796 - 975,666
Trade and other payables - 106,685 - - - 106,685
698,910 126,561 211,084 45,796 - 1,082,351
months
3 to 12
months
years
Total
The Company Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At June 30, 2013
Trade and other payables - 109,919 - - - 109,919
702,412 132,266 182,542 176,552 - 1,193,772
(d) Capital Management
The primary objective of the Groups capital management is to ensure that it maintains a strong credit rating and healthy capital
ratios in order to support its business and maximize shareholders value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain
or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or
issue new shares.
No changes were made in the objectives, policies or processes during the years ended June 30, 2013 and June 30, 2012.
The Group monitors capital using a gearing ratio which is interest bearing loans and borrowings divided by equity. The Groups
policy is to keep the gearing ratio between 30% and 60%. Capital comprises of equity attributable to the equity holders of the
parent.
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Interest bearing loans and borrowings 1,024,228 1,163,811 960,784 1,054,328
Equity 2,945,846 2,858,746 2,197,038 2,090,359
Gearing ratio 35% 41% 44% 50%
(e) Fair values of fnancial instruments
The Groups and the Companys fnancial assets and fnancial liabilities include available-for-sale investments, trade and other
receivables, cash at bank and in hand, interest bearing loans and borrowings, and trade and other payables. Except where
otherwise stated, the fair values of these fnancial assets and fnancial liabilities approximates their carrying amounts.
5. PROPERTY, PLANT AND EQUIPMENT
Freehold
Land and
Buildings
Leasehold
Properties
Plant and
Equipment
Motor
Vehicles
Assets in
Progress
Total
THE GROUP
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
COST OR VALUATION
At July 1, 2011 1,478,062 78,343 1,726,234 151,080 34,742 3,468,461
Additions 72,050 260 247,479 24,736 23,785 368,310
Reclassifcation * (10,499) - 9,818 - 681 -
Disposals - - (20,134) (17,332) (5,453) (42,919)
Transfer from inventories ** - - 10,085 - - 10,085
Revaluation adjustments 668,906 - - - - 668,906
Exchange differences (4,497) (1,083) (9,679) (1,420) 1,372 (15,307)
At June 30, 2012 2,204,022 77,520 1,963,803 157,064 55,127 4,457,536
Additions 12,780 759 125,913 10,358 635 150,445
Transfer to intangible assets 782 - 3,487 - (4,778) (509)
Disposals - - (22,231) (10,787) - (33,018)
Write - off (550) - (4,007) - - (4,557)
Exchange differences 686 165 4,063 585 1,351 6,850
At June 30, 2013 2,231,167 78,444 2,071,028 157,220 52,335 4,590,194
DEPRECIATION
At July 1, 2011 89,687 14,120 1,272,269 94,276 - 1,470,352
Charge for the year 35,137 2,443 122,764 22,266 - 182,610
Reclassifcation 3,135 - (3,135) - - -
Disposals - - (12,344) (17,082) - (29,426)
Revaluation adjustments (116,395) - - - - (116,395)
Exchange differences (154) (133) (5,898) (923) - (7,108)
At June 30, 2012 11,410 16,430 1,373,656 98,537 - 1,500,033
Disposals - - (21,094) (10,293) - (31,387)
Write - off - - (3,950) - - (3,950)
Exchange differences 670 (533) 2,325 411 - 2,873
At June 30, 2013 49,109 18,269 1,495,332 110,027 - 1,672,737
NET BOOK VALUES
At June 30, 2013 2,182,058 60,175 575,696 47,193 52,335 2,917,457
At June 30, 2012 2,192,612 61,090 590,147 58,527 55,127 2,957,503
(a) The carrying amounts of plant and machinery and motor vehicles held under fnance lease as at June 30, 2013 and 2012 were as
follows:
Plant and Motor 2013 Plant and Motor 2012
Equipment Vehicles Equipment Vehicles
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
Cost 167,265 156,728 323,993 162,003 121,343 283,346
Accumulated depreciation (90,648) (91,346) (181,994) (67,733) (56,148) (123,881)
Net book values 76,617 65,382 141,999 94,270 65,195 159,465
* This reclassifcation relates to assets being reclassifed under the correct category.
** The transfer from inventories relates to spare parts previously recognised under inventories now capitalised as per IAS 16. See note
2.3(b).
5. PROPERTY, PLANT AND EQUIPMENT (Contd)
Freehold Leasehold Plant and Motor Asset In Total
THE COMPANY Land and Properties Equipment Vehicles Progress
Buildings
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
COST OR VALUATION
At July 1, 2011 753,034 43,126 1,295,461 81,801 - 2,173,422
Additions 44,488 - 108,101 13,193 113,268 279,050
Disposals - - (2,772) (11,722) - (14,494)
Transfer from inventories *
- - 10,085 - - 10,085
Transfer from investment properties
21,890 - - - - 21,890
Transfer to investment properties
- - (3,135) - - (3,135)
At June 30, 2012 935,215 43,126 1,407,740 83,272 113,268 2,582,621
Additions 10,860 - 97,935 5,720 - 114,515
Disposals - - (17,948) (7,507) - (25,455)
Transfer 13,311 - 99,957 - (113,268) -
Transfer from investment properties 4,000 - - - - 4,000
At June 30, 2013 963,386 43,126 1,587,684 81,485 - 2,675,681
DEPRECIATION
At July 1, 2011 52,607 11,298 985,722 51,048 - 1,100,675
Disposals - - (2,772) (11,472) - (14,244)
Transfer to investment properties - - (3,135) - - (3,135)
Revaluation adjustments (55,814) - - - - (55,814)
At June 30, 2012 11,692 13,454 1,064,459 51,336 - 1,140,941
Disposal - - (17,948) (7,346) - (25,294)
Transfer from investment properties 200 - - - - 200
At June 30, 2013 31,906 15,610 1,157,740 55,939 - 1,261,195
NET BOOK VALUES
At June 30, 2013 931,480 27,516 429,944 25,546 - 1,414,486
At June 30, 2012 923,523 29,672 343,281 31,936 113,268 1,441,680
Bank borrowings are secured by fxed and foating charges over the assets of the Group.
Leased liabilities are effectively secured as the rights to the leased asset revert to the lessor in event of default.
* The transfer from inventories relates to spare parts previously recognised under inventories now capitalised as per IAS 16. See note
2.3(b).
5. PROPERTY, PLANT AND EQUIPMENT (Contd)
(a) The carrying amounts of plant and machinery and motor vehicles held under fnance lease as at June 30, 2013 and 2012 were as
follows:
Plant and Motor 2013 Plant and Motor 2012
Equipment Vehicles Equipment Vehicles
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
Cost 156,698 85,539 242,237 156,698 85,539 242,237
Accumulated depreciation (88,895) (46,899) (135,795) (67,032) (36,493) (103,525)
Net book values 67,803 38,640 106,442 89,666 49,046 138,712
(b) Revaluation of land and buildings
The fair value of the freehold land and buildings were determined by Socit DHotman De Spville, an independent valuer. Fair value is
determined by reference to market based evidence; that is, the valuations are based on active market prices, adjusted for any difference in the
nature, location or condition of a specifc property. The date of the revaluation was June 3, 2012.
The cost, accumulated depreciation and net book values of the land and buildings, had they been stated at historical cost would be as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Cost 1,069,833 1,058,155 1,032,937 1,022,051
Accumulated depreciation (314,094) (311,392) (305,514) (303,863)
Net book values 755,739 746,763 727,423 718,188
(c) Revaluation surplus arising on the above exercise has been accounted at 70% on all land and buildings except for agricultural land
where all surplus has been recognised at 100%.
6. INVESTMENT PROPERTIES
2013 2012 2013 2012
COST Rs000 Rs000 Rs000 Rs000
At July 1, 45,216 45,216 323,094 338,835
Additions - - 615 3,014
Transfer to freehold land and buildings - - (4,000) (21,890)
Transfer from property, plant and equipment - - - 3,135
At June 30, 45,216 45,216 319,709 323,094
DEPRECIATION
At July 1, 24,917 23,008 111,145 92,473
Charge for the year 1,909 1,909 15,101 15,537
Transfer (to)/from freehold land and buildings - - (200) 3,135
At June 30, 26,826 24,917 126,046 111,145
NET BOOK VALUES
At June 30, 18,390 20,299 193,663 211,949
The investment properties were last revalued on June 3, 2012 by an external independent valuer. The directors performed a valuation of its
investment properties and believe that there has been no signifcant change in the fair value of the investment pertaining to the parent company
since last independent valuation. The valuation was carried out at that date by Socit DHotman De Speville. Fair value is determined by reference
to market based evidence; that is, the valuations are based on active market prices, adjusted for any difference in the nature, location or condition
of a specifc property. The fair value at June 30, 2013 was Rs 197.3 m (2012:Rs 197.3 m) for the Group and Rs 620.5 m (2012: Rs 619.8 m) for
the Company. The rental income arising during the year amounted to Rs 8.0 m (2012: Rs 9.5 m) for the Group and for the Company Rs 33.0 m.
(2012: Rs 32.0 m). No direct operating expenses were incurred on the investment properties during the year (2012: Rs nil).
7. BEARER BIOLOGICAL ASSETS
THE GROUP
2013 2012
Plant canes
Rs000 Rs000
At July 1, 16,113 18,118
Expenditure for the year 240 4,190
Amortisation for the year (5,026) (6,195)
At June 30, 11,327 16,113
Other information:
Area replanted(Hectare) 591 578
Cost per Hectare(Rs) 405 6,807
8. INTANGIBLE ASSETS
Computer Goodwill Total Computer
Software Software
COST Rs000 Rs000 Rs000 Rs000
At July 1, 2011 20,853 134,103 154,956 11,014
Additions 4,819 - 4,819 2,591
Disposals (819) - (819) -
Exchange differences (30) - (30) -
At June 30, 2012 24,823 134,103 158,926 13,605
Additions 2,130 - 2,130 -
Disposals (624) - (624) -
Write off (490) - (490) -
Work in progress 6,484 - 6,484 -
Transfer from property, plant and equipment 508 - 508 -
Exchange differences 27 - 27 -
At June 30, 2013 32,858 134,103 166,961 13,605
AMORTISATION
At July 1, 2011 12,219 128,671 140,890 7,649
Disposals (742) - (742) -
Amortisation charge 3,187 - 3,187 1,472
Exchange differences (21) - (21) -
At June 30, 2012 14,643 128,671 143,314 9,121
Amortisation charge 4,267 - 4,267 1,613
Disposals adjustment (573) - (573) -
Write off (465) - (465) -
Exchange differences 4 - 4 -
At June 30, 2013 17,876 128,671 146,547 10,734
NET BOOK VALUES
At June 30, 2013 14,982 5,432 20,414 2,871
At June 30, 2012 10,180 5,432 15,612 4,484
8. INTANGIBLE ASSETS (Contd)
The carrying amount of the goodwill is allocated to the Agriculture cash generating unit (CGU). The recoverable amount of that unit has been
determined based on value in use calculation using cash fow projections from fnancial budgets approved by senior management covering a
period of fve years. The pre-tax discount rate applied to the cash fow projections is 17% and the cash fows beyond the budgeted period are
extrapolated using a 3% growth rate. No additional impairment was required as a result of the analysis.
The value in use calculation is most sensitive to the following assumptions:
Discount rates Discount rates represent the current market assessment of the risks specifc to each CGU, taking into consideration the time value
of money and individual risks of the underlying assets that have not been incorporated in the cash fow estimates. The discount rate calculation is
based on the specifc circumstances of the Group and its operating segments and is derived from its weighted average cost of capital (WACC).
The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Groups investors.
The cost of debt is based on the interest bearing borrowings the Group is obliged to service. Segment-specifc risk is incorporated by applying
individual beta factors. The beta factors are evaluated annually based on publicly available market data.
Selling prices The prices of cane products are obtained from the relevant bodies and adjusted for expected changes for future periods.
Growth rates Rates are based on management best estimate of the industrys growth rate.
Management believes that reasonably possible changes in these assumptions will not cause the carrying amount of the cash generating unit to
materially exceed its recoverable amount.
9. INVESTMENT IN SUBSIDIARIES
THE COMPANY
Unquoted equity instruments 2013 2012
Rs000 Rs000
At June 30, 828,839 828,839
Particulars of interests in the Groups subsidiary companies:
OPERATIONAL
Country of
incorporation
Direct Indirect
Espace Maison Lte Mauritius 100.0 -
Compagnie de Gros Cailloux Lte Mauritius 100.0 -
Socit dInvestissement Rodriguais Mauritius 100.0 -
Welcome Industries Ltd Mauritius - 75.9
UBP International Ltd Mauritius 100.0 -
UBP Madagascar Madagascar - 100.0
United Granite Products (Pvt) Ltd Sri-Lanka - 77.0
Sainte Marie Crushing Plant Ltd Mauritius 76.5 -
Societe des Petits Cailloux Mauritius - 76.5
Dry Mixed Products Ltd Mauritius 51.0 -
DORMANT
Marbella Ltd* Mauritius 100.0 -
Land Reclamation Ltd Mauritius 100.0 -
Stone and Bricks Co Ltd Mauritius 100.0 -
The Stone Masters Co Ltd Mauritius 100.0 -
Pricom Ltd Mauritius 100.0 -
* Marbella Ltd is in the process of winding up.
2013 & 2012
% Holding
10. INVESTMENT IN ASSOCIATES
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
At July 1, 179,428 203,329 110,306 110,306
Share of results 36,092 6,084 - -
Movement in reserves - (3,450) - -
Dividends received (16,770) (26,535) - -
At June 30, 198,750 179,428 110,306 110,306
(a) I ncluded in the share of results for 2012 is an adjustment of Rs 19.8 m to the profts of Pre-mixed Concrete Ltd further to the adoption of a
new policy by its holding company with regard to provisioning for inventories and trade receivables.
(b) The shareholding in associates are as follows:
Country of 2013 & 2012
incorporation % Holding
Pre-mixed Concrete Ltd Mauritius 49.0
Cement Transport Ltd Mauritius 25.0
Compagnie des Transports Reunis Lte Mauritius 30.0
Terrarock Ltd Mauritius 46.0
Sud Concassage Lte Mauritius 25.0
Prochimad Mines et Carrires SARL Madagascar 34.0
Compagnie Mauricienne dEntreprise Lte Mauritius 20.0
(c) Summarised fnancial information of the Groups associates is set out below:
2013 2012
Share of the associates: Rs000 Rs000
Total assets 230,442 213,694
Total liabilities (79,523) (70,994)
Net assets 150,919 142,700
Revenue 390,532 422,959
Proft after tax 36,092 6,084
11. AVAILABLE-FOR-SALE INVESTMENTS
Quoted Unquoted Total
THE GROUP Rs000 Rs000 Rs000
At July 1, 2011 43,112 16,520 59,632
Additions - 235 235
Fair value adjustments (12,953) - (12,953)
At June 30, 2012 30,159 16,755 46,914
Additions - 1,500 1,500
Fair value adjustments 1,182 - 1,182
At June 30, 2013 31,341 18,255 49,596
11. AVAILABLE-FOR-SALE INVESTMENTS (Contd)
Quoted Unquoted Total
THE COMPANY Rs000 Rs000 Rs000
At July 1, 2011 38,823 16,467 55,290
Additions - 235 235
Fair value adjustments (12,963) - (12,963)
At June 30, 2012 25,860 16,702 42,562
Additions - 1,500 1,500
Fair value adjustments 663 - 663
At June 30, 2013 26,523 18,202 44,725
FAIR VALUE HIERARCHY
The following table provides an analysis of fnancial instruments that are measured subsequent to initial recognition at fair value, grouped into
Level 1 to 3 based on the degree to which the fair value is observable.
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for assets or
liability either directly (i.e as prices) or indirectly (i.e derived from prices); and
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
THE GROUP
2013 Level 1 Level 2 Level 3 Total
Rs000 Rs000 Rs000 Rs000
Available-for-sale investments 31,341 14,345 - 45,686
THE COMPANY
Level 1 Level 2 Level 3 Total
Rs000 Rs000 Rs000 Rs000
THE GROUP
2012 Level 1 Level 2 Level 3 Total
Rs000 Rs000 Rs000 Rs000
THE COMPANY
Level 1 Level 2 Level 3 Total
Rs000 Rs000 Rs000 Rs000
Certain available-for-sale investments were stated at cost since their fair value could not be reliably ascertained due to the absence of a market
and track records for such similar instruments.
2013 2012
Rs000 Rs000
Other available-for-sale investments at cost:
The Group 3,910 2,410
The Company
3,857 2,357
12. OTHER FINANCIAL ASSET
THE GROUP AND THE COMPANY
2013 2012
Rs000 Rs000
Loan receivable from associate 13,795 13,795
The loan receivable is unsecured, bears no interest and will be repayable on demand.
13. INCOME TAX
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
(a) In the statements of comprehensive income:
Income tax on the adjusted proft for the year 31,208 30,757 22,657 22,754
Corporate social responsibility tax 5,114 5,324 3,021 3,436
Under/(over) provision of income tax in previous year 1,282 1,763 3,282 (346)
Under/(over) provision of deferred tax in previous years 443 (4,680) 829 (350)
Deferred tax charge/(credit) 5,638 (413) 1,577 1,401
Income tax expense 43,685 32,751 31,366 26,895
(b) In the statements of fnancial position:
At July 1, 12,007 19,570 5,214 11,662
Payment during the year (36,098) (41,792) (24,906) (28,741)
Tax withheld (1,896) (3,615) (1,658) (3,551)
Under/(over) provision of income tax in previous year 1,282 1,763 3,282 (346)
At June 30, 11,617 12,007 7,610 5,214
13. INCOME TAX (Contd)
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
(c) Deferred tax:
The amounts presented in the statements of fnancial position are
as follows:
Deferred tax assets 20,452 27,269 17,484 18,374
Deferred tax liabilities (77,695) (78,430) (72,939) (71,423)
Net deferred tax liabilities (57,243) (51,161) (55,455) (53,049)
(d) Movement in deferred tax:
At July 1, (51,161) (115,109) (53,049) (50,610)
(Under)/overprovision of deferred tax in previous years (443) 4,680 (829) 350
Overprovision on deferred tax on previous revaluation gain - 73,506 - 12,638
Deferred tax on revaluation gain - (14,651) - (14,026)
Deferred tax (charge)/credit (5,638) 413 (1,577) (1,401)
At June 30, (57,242) (51,161) (55,455) (53,049)
Unused tax losses of the Group that have not been recognised as deferred tax asset amounted to Rs 73.0 m (2012: Rs 18.2 m). Deferred tax
asset has not been recognised in respect of these losses due to the unpredictability of future proft streams to utilise these losses.
(e) Deferred tax assets and liabilities are attributable to the following:
Deferred tax liabilities
- Accelerated capital allowances (9,262) (9,369) (4,506) (2,990)
- Deferred tax on revaluation gain (68,433) (69,061) (68,433) (68,433)
(77,695) (78,430) (72,939) (71,423)
Deferred tax assets
- Employee beneft liability 14,684 13,328 12,752 11,595
- Tax losses - 2,210 - -
- Provision for bad debts 3,330 7,572 2,578 4,668
- Provision for obsolete stock 2,438 4,159 2,154 2,111
20,452 27,269 17,484 18,374
Net deferred tax assets (57,242) (51,161) (55,455) (53,049)
(f) The tax on proft before taxation differs from the theoretical amount that would arise using the basic income tax rate as follows:
Proft before tax 221,856 203,885 216,912 209,799
Tax calculated at the rate of 15% 33,278 30,583 32,537 31,470
Tax effect of :
Non-allowable expenses 1,133 2,212 910 1,712
Expenses qualifying for double relief (1,047) (1,074) - -
Corporate social responsibility 5,114 5,324 3,021 3,436
Other deductible items (6,185) - (3,184) -
Tax effect from associate (5,414) (913) - -
Income exempt from tax (2,045) (2,504) (6,029) (9,027)
Deferred tax assets not recognised 12,566 312 - -
Utilisation of previously unrecognised tax losses 4,560 1,728 - -
Under/(over) provision of income tax in previous year
1,282 1,763 3,282 (346)
Under/(over) provision of deferred tax in previous years 443 (4,680) 829 (350)
14. CONSUMABLE BIOLOGICAL ASSETS
THE GROUP
Standing Cane Plants Total
Rs000 Rs000 Rs000
At July 1, 2011 17,287 11,529 28,816
Movement (3,120) 2,566 (554)
At June 30, 2012 14,167 14,095 28,262
Movement 7,513 (3) 7,510
At June 30, 2013 21,680 14,092 35,772
15. INVENTORIES
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Raw materials and spares 191,943 153,750 129,787 113,157
Work in progress 33,119 30,327 17,148 19,415
Finished goods 421,312 412,554 75,398 53,522
646,374 596,631 222,333 186,094
The amount of write down of inventories, recognised as an expense in cost of sales amounted to Rs 29.1 m (2012: Rs 4.5 m) for the Group and
Rs 10.8 m for the Company (2012: Rs 4.3 m).
16. TRADE AND OTHER RECEIVABLES
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Trade receivables 210,189 253,368 102,229 121,958
Receivables from subsidiaries - - 362,197 348,490
Receivables from associates 66,030 49,943 66,030 49,943
Loan receivable from subsidiary - - 26,000 9,500
Other receivables 303,681 317,587 23,845 19,262
579,900 620,898 580,301 549,153
Trade and other receivables are non-interest bearing and are generally on 30 to 90 days terms. Other receivables are non-interest bearing and
having an average term of 6 months. For terms and conditions relating to receivables from related parties, refer to note 29.
As at June 30, the ageing analysis of trade receivables were as follows:
Neither past Past due but not impaired
due nor
30 -
60 days
61 -
90 days
90 days
- 1 yr
More
than 1 yr Total impaired
THE GROUP Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2013 210,189 87,114 63,351 21,219 21,101 17,404
2012 253,368 91,444 68,874 34,889 35,271 22,891
THE COMPANY
2013 102,229 37,944 36,334 10,021 14,072 3,858
2012 121,958 48,570 45,008 10,732 14,902 2,746
16. TRADE AND OTHER RECEIVABLES (Contd)
The movement in the provision for impairment of trade receivables were as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Individually impaired
At July 1, 43,278 52,053 24,959 37,283
Charge for the year 5,421 7,229 - -
Write off (1,142) - (1,142) (12,324)
Release (7,743) (16,004) (6,629) -
At June 30, 39,814 43,278 17,188 24,959
17. CASH AND CASH EQUIVALENTS
For the purpose of the statements of cash fows, cash and cash equivalents comprise of the following at June 30:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Cash at bank and on hand 30,910 28,359 1,237 1,310
Bank overdraft (note 19) (245,026) (232,733) (223,391) (207,685)
(214,116) (204,374) (222,154) (206,375)
The acquisition of property, plant and equipment was fnanced as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Non-cash transactions
Total acquisition cost (note 5) 150,445 378,395 114,515 289,135
Financed by cash (150,445) (330,433) (114,515) (254,217)
Financed by fnance leases - 47,962 - 34,918
18. EQUITY
THE GROUP AND THE COMPANY
2013 2012 2013 2012
(a) Share capital Number of Number of
shares shares Rs000 Rs000
At June 30, 26,510,042 26,510,042 265,100 265,100
(b) Reserves 2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Share premium 7,354 7,354 7,354 7,354
Associate companies (note (i)) 79,415 79,415 - -
Revaluation reserve (note (ii)) 1,251,336 1,237,889 505,970 505,970
Fair value reserve (note (iii)) 29,915 28,733 27,445 26,782
Translation reserve (note (iv)) 58,210 61,675 - -
Retained earnings 1,254,516 1,178,580 1,391,169 1,285,153
2,680,746 2,593,646 1,931,938 1,825,259
(i) Associate companies represent reserves other than retained earnings arising on consolidation of associates.
(ii) The revaluation reserve is used to record increases in the fair value of land and buildings and decreases to the extent that such decrease
relates to an increase on the same asset previously recognised in equity.
(iii) The fair value reserve records fair value changes on available-for-sale fnancial assets.
(iv) The translation reserve is used to record exchange differences arising from the translation of the fnancial statements of overseas operations.
19. INTEREST-BEARING LOANS AND BORROWINGS
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Non-current
Bank loans (note (a)) 62,011 133,998 42,012 93,998
Obligations under fnance lease (note (b)) 51,897 88,036 42,795 73,774
113,908 222,034 84,807 167,772
Current
Bank overdrafts (note 17) 245,026 232,733 223,391 207,685
Bank loans (note (a)) 166,300 168,800 146,300 148,800
Unsecured loans 462,863 498,077 475,519 494,727
Obligations under fnance lease (note (b)) 36,130 42,168 30,768 35,344
910,319 941,778 875,978 886,556
Total borrowings 1,024,227 1,163,812 960,785 1,054,328
(a) Bank loans are payable as follows:
Within one year 166,300 168,800 146,300 148,800
After one year and before two years 43,800 82,900 23,800 65,248
After two years and before fve years 18,211 51,098 18,212 28,750
228,311 302,798 188,312 242,798
Bank loans and overdrafts are secured by fxed and foating charges on the Groups assets and bear interest between PLR +0.5% and PLR +1.5%
per annum. Unsecured loans are repayable at call, the rate of interest per annum at June 30, 2013 was 7.00% (2012: 7.00%).
(b) Finance lease liabilities 2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Minimum lease payments:
Within one year 42,466 51,987 35,956 43,704
98,723 150,996 82,293 126,238
Future fnance charges on fnance leases (10,696) (20,792) (8,730) (17,120)
Present value of fnance lease liabilities 88,027 130,204 73,563 109,118
Within one year 36,130 42,168 30,768 35,344
88,027 130,204 73,563 109,118
Leasing fnance carries interest at an annual rate between 8.65% and 11.75%. Leased liabilities are effectively secured as the rights to the leased
assets revert to the lessor in the event of default.
20. EMPLOYEE BENEFIT LIABILITY
The benefts of employees of the Group and the Company fall under two different types of arrangements:
(i) A defned benefts scheme which is funded. The plan assets are held independently by an insurance company;
(ii) Retirement benefts, as defned under the Labour Laws, which are unfunded.
The liabilities in respect of the defned beneft schemes (i) and (ii) above are analysed as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Funded obligation (note (a)) 27,131 13,491 18,694 13,864
Unfunded obligation (note (b)) 87,439 80,228 66,289 63,440
114,570 93,719 84,983 77,304
(a) Funded obligation
The amounts recognised in the statements of fnancial position in respect of funded obligation are as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Present value of funded obligation 272,484 197,774 232,510 184,450
Fair value of plan assets (161,490) (145,386) (142,780) (132,864)
110,994 52,388 89,730 51,586
Unrecognised actuarial gains (83,863) (38,897) (71,036) (37,722)
Beneft liability 27,131 13,491 18,694 13,864
Movement in the liability recognised in the statements of fnancial position:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
At July 1, 13,491 13,484 13,864 13,792
Liabilities transferred from Pre-mixed Concrete Ltd 6,862 - - -
Total expenses 17,245 10,711 13,527 9,083
Contributions paid (10,467) (10,704) (8,697) (9,011)
At June 30, 27,131 13,491 18,694 13,864
The amounts recognised in the statement of comprehensive income are as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Current service cost 8,054 6,314 5,602 5,039
Scheme expenses 388 387 323 322
Cost of insuring risk benefts 1,400 1,593 1,091 1,305
Interest cost 20,357 16,347 17,816 15,125
Expected return on plan assets (14,361) (14,245) (12,714) (13,023)
Actuarial losses 1,407 316 1,407 316
Net beneft expenses 17,245 10,711 13,527 9,083
Changes in the obligation and fair value of plan assets are as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Reconciliation of the present value of
defned beneft obligations:
Present value of obligations at July 1, (197,773) (167,168) (184,450) (156,389)
Present value of obligation transferred from Pre-mixed Concrete Ltd
(10,034) - - -
Current service cost (8,054) (6,314) (5,602) (5,039)
Interest cost (20,357) (16,347) (17,816) (15,125)
Employees contributions (9) - - -
Actuarial losses (41,953) (13,120) (29,997) (12,889)
Benefts paid 5,696 5,176 5,355 4,992
Present value of obligations at June 30, (272,484) (197,773) (232,510) (184,450)
Reconciliation of fair value of plan assets:
Fair value of plan assets at July 1, 145,385 133,615 132,864 122,836
Present value of obligation transferred from Pre-mixed Concrete Ltd
3,168 - - -
Expected return on plan assets 14,361 14,245 12,714 13,023
Employers contributions 10,467 10,704 8,697 9,011
Scheme expenses (388) (387) (323) (322)
Cost of insuring risk benefts (1,400) (1,593) (1,091) (1,305)
Employees contributions 9 - - -
Actuarial losses (4,416) (6,023) (4,726) (5,388)
Benefts paid (5,696) (5,176) (5,355) (4,992)
Fair value of plan assets at June 30, 161,490 145,385 142,780 132,863
Amounts for the current and previous four periods are as follows:
THE GROUP
2013 2012 2011 2010 2009
Rs000 Rs000 Rs000 Rs000 Rs000
Defned beneft obligations (272,484) (197,774) (167,168) (142,959) (140,966)
Plan assets 161,490 145,386 133,615 124,527 118,298
Defcit (110,994) (52,388) (33,553) (18,432) (22,668)
Experience (losses)/gains on plan liabilities (41,952) (13,120) (11,386) 8,513 (1,948)
Experience losses on plan assets (4,416) (6,023) (5,206) (3,659) (4,980)
THE COMPANY
2013 2012 2011 2010 2009
Rs000 Rs000 Rs000 Rs000 Rs000
Plan assets 142,780 132,863 122,836 113,533 107,811
Defcit (89,730) (51,587) (33,553) (17,971) (21,794)
Experience (losses)/gains on plan liabilities (29,997) (12,889) (11,805) 8,189 (2,098)
Experience losses on plan assets (4,726) (5,388) (4,908) (3,400) (4,135)
The main categories of plan assets are as follows:
2013 2012 2013 2012
% % % %
Local equities 38 38 38 38
Overseas equities 22 22 22 22
Fixed interest 35 35 35 35
Properties 5 5 5 5
Total market value of assets 100 100 100 100
20. EMPLOYEE BENEFIT LIABILITY (Contd)
The principal actuarial assumptions used for accounting purposes were:
2013 2012 2013 2012
% % % %
Discount rate 7.5 9.5 7.5 9.5
Future salary increase 6.0 8.0 6.0 8.0
Future pension increase 3.5 3.0 0.0 0.0
SIPF 1 pension revaluation 0.0 3.0 0.0 0.0
Expected return on plan assets 7.5 9.5 7.5 9.5
The Group expects to contribute Rs 17.7 m to its defned beneft plans in the year ending June 30, 2014.
The Company expects to contribute Rs 10.9 m to its defned beneft plans in the year ending June 30, 2014.
(b) Unfunded obligations
The amounts recognised in the statements of fnancial position in respect of unfunded obligations are as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Present value of unfunded obligations 118,161 95,411 94,996 78,239
Unrecognised actuarial gain (30,723) (15,183) (28,707) (14,799)
Beneft liability 87,438 80,228 66,289 63,440
Movement in the liability recognised in the
statements of fnancial position:
At July 1, 80,228 76,163 63,440 58,643
Total expenses 16,700 13,691 10,727 10,787
Contributions paid (9,490) (9,626) (7,878) (5,990)
At June 30, 87,438 80,228 66,289 63,440
The amounts recognised in the statement
of comprehensive income are as follows:
Current service cost 6,054 3,918 2,989 2,926
Scheme expenses 7,429 6,942 7,429 7,049
Interest cost 2,444 2,212 503 516
Expected return on plan assets (194) 296 (194) 296
Actuarial losses 761 330 - -
Past service cost 206 (7) - -
Net beneft expenses 16,700 13,691 10,727 10,787
Amounts for the current and previous four periods are as follows:
THE GROUP
2013 2012 2011 2010 2009
Rs000 Rs000 Rs000 Rs000 Rs000
Defcit (118,161) (95,411) (9,803) (10,218) (10,323)
Experience losses on plan liabilities (761) (330) (765) (659) (34)
The principal actuarial assumptions used for accounting purposes were:
2013 2012 2013 2012
% % % %
Discount rate 8.0 10.0 8.0 10.0
Future salary increase 6.5 8.0 6.5 8.0
Future pension increase 4.0 3.0 0.0 0.0
SIPF revaluation 3.0 3.0 0.0 0.0
Expected return on plan assets 10.5 10.5 0.0 0.0
21. TRADE AND OTHER PAYABLES
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Trade payables 136,478 195,220 45,191 55,655
Payables to subsidiaries - - 11,660 9,021
Other payables and accruals 182,239 107,762 49,834 45,242
318,717 302,982 106,685 109,918
Trade payables are non-interest bearing and are normally settled on 60-day terms. Other payables are non-interest bearing and have an
average term of six months. For terms and conditions relating to payables to subsidiaries, refer to note 29.
22. REVENUE
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Sale of goods 2,271,660 2,419,773 1,305,764 1,359,706
Rendering of services 171,764 160,676 119,978 87,735
2,443,424 2,580,449 1,425,742 1,447,441
23. OPERATING PROFIT
Operating proft is arrived at after: 2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
(a) Crediting:
- Rental income 8,333 9,593 33,218 32,823
- Other operating income 58,965 103,742 58,788 84,128
- Proft/(loss) on disposal of property, plant and equipment 2,675 (11,697) 2,524 3,447
(b) Charging:
- Cost of sales 1,626,932 1,766,191 897,801 954,194
- Administrative expenses 586,527 600,283 362,119 366,122
- Selling and distribution costs 43,480 40,981 16,411 21,950
Depreciation of property, plant and equipment
- owned assets 147,055 116,756 113,080 77,989
- leased assets 58,112 65,854 32,268 35,470
Depreciation of investment properties 1,909 1,909 15,101 15,537
Cost of inventories recognised as expenses 1,390,654 955,891 356,033 351,991
Amortisation of bearer biological assets 5,026 6,195 - -
Amortisation of intangible assets 4,267 3,187 1,613 1,472
Staff costs (note (i)) 408,904 365,001 269,994 258,478
23. OPERATING PROFIT (Contd)
Included in cost of sales and operating expenses are:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
(i) Analysis of staff costs:
- Wages and salaries 355,217 325,244 236,989 228,222
- Social security costs 15,276 13,939 9,308 8,818
- Pension costs 38,411 25,818 23,697 21,438
408,904 365,001 269,994 258,478
24. FINANCE INCOME
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Dividend income:
- Quoted 90 181 133 181
- Unquoted 1,481 1,885 40,057 59,920
Interest income 3,262 5,210 1,575 788
4,833 7,276 41,765 60,889
25. FINANCE COSTS
2013 2012 2013 2012
Interest expense on : Rs000 Rs000 Rs000 Rs000
Bank overdrafts 6,837 6,894 6,011 6,228
Bank loans 20,188 26,122 15,988 20,153
Leases 10,517 12,262 8,502 10,589
Other borrowings 37,985 38,829 38,293 39,690
75,527 84,107 68,794 76,660
26. EARNINGS PER SHARE
2013 2012 2013 2012
Proft attributable to equity holders of the parent (Rs000) 160,759 149,626 185,546 182,904
Number of shares in issue 26,510,042 26,510,042 26,510,042 26,510,042
Earnings per share (Rs) Basic 6.06 5.64 7.00 6.90
27. DIVIDENDS
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Dividend on ordinary shares:
Dividend of Rs 3.00 per share paid (2012: Rs 2.75 per share) 79,530 72,905 79,530 72,905
28. FAIR VALUES
Financial assets of the Group and the Company include available-for-sale investments, loan receivable from associate, trade and other
receivables, cash at bank and on hand. Financial liabilities consist of trade and other payables, and interest-bearing loans and borrowings.
Except for certain available-for-sale investments as disclosed in note 11, the fair values of the fnancial assets and fnancial liabilities of the Group
and the Company approximate their carrying values.
29. RELATED PARTY TRANSACTIONS
The
Company
Subsidiary
Companies
Associate
Companies
Enterprises
Under Common
Management
Key
Management
Personnel
Enterprises With
Common Major
Shareholders
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
(a) Nature of transactions
Purchase of goods and services 67,911 108,141 252,848 178,512 7,402 13,942 920 1,747 12,019 22,482 34,641 67,624
Purchase of property, plant
and equipment
220 11,560 987 771 32 - - - - 390 - 10,686
Sale of goods and services 385,077 344,817 103,608 24,309 181,641 169,663 26,146 16,833 390 2,115 1,734 6,493
Management fees 26,751 38,372 - - 9,284 12,507 5,008 13,566 - - - -
Interest received 1,473 596 985 262 - - - - - - - -
Interest paid 5,981 5,815 1,473 561 1,087 1,881 616 - 15 - 3,278 2,336
(b) Outstanding balances
at June 30,
Amounts receivable 162,362 58,414 21,852 5,426 56,820 49,943 3,968 12,746 1,309 2,522 208 1,003
Amounts payable 7,423 6,756 32,595 27,869 - - - - - - 4,576 4,767
Loans receivable 370,149 455,509 13,007 5,962 - 13,795 - - - - - -
Loans payable 35,932 39,948 26,000 9,500 15,811 22,060 116 - - - 6,998 12,000
Provision for impairment 139,013 139,013 - - - - - - - - - -
(c) Compensation of key management personnel
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Short term employee benefts 55,705 56,274 42,993 42,342
Post-employment benefts 3,887 3,266 3,057 2,551
59,592 59,540 46,050 44,893
Terms and conditions of transactions with related parties:
The sales to and purchases from related parties are made at normal market prices. Outstanding balances at the year-end are unsecured,
interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables and
payables. At each fnancial year, an assessment of provision for impairment is undertaken through examination of the fnancial position
of the related party and the market in which the related party operates.
30. CONTRACTS OF SIGNIFICANCE
Except for transactions as disclosed in note 29 on related party transactions, the Group did not have any contract of signifcance as defned
by the Listing Rules of the Stock Exchange of Mauritius with any of its Directors and controlling shareholders.
31. CAPITAL COMMITMENTS
Capital expenditure: 2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Contracted for but not provided in the fnancial statements
21,295 - 15,695 -
Approved by the directors but not contracted for 273,643 141,097 186,066 97,581
294,938 141,097 201,761 97,581
The expenditure for property, plant and equipment will be fnanced by cash generated by Group activities and from available borrowing
facilities.
32. CONTINGENT LIABILITIES
At June 30, 2013, the Group had contingent liabilities in respect of bank guarantees amounting to Rs 26.2 m (2012:Rs 7.9 m) arising in the
ordinary course of business from which it is anticipated that no material liabilities would arise.
At June 30, 2013, as far as the Directors are aware, there are no current, pending or threatened legal proceedings against the Group, which
may have a material impact on the Groups fnancial position. This includes a claim lodged by the promoter of a residential project for damages
alledgedly suffered as a result of legal proceedings initiated by the Group to stop the same. The project was in fact stopped by an injuction
issued by the Supreme Court following the application of the Group on the ground that, inter alia, it contravened the Black River Outline Scheme
(GN 1348 of 2006) by being located within one kilometre buffer zone around the Bambous stone crushing plant. According to the Groups
legal advisors, such claim is frivolous and vexatious and should be set aside by the Court.
33. OPERATING LEASE COMMITMENTS
Future minimum rentals payable under operating leases are as follows:
2013 2012 2013 2012
Rs000 Rs000 Rs000 Rs000
Within one year 11,907 15,195 7,829 10,905
After one year and before two years 6,027 10,931 431 7,107
20,676 32,859 9,889 19,841
34. HOLDING COMPANY
The directors regard GML Investissement Lte incorporated in Mauritius as the holding company. Its registered address is 4th Floor, IBL House,
Caudan Waterfront, Port Louis.
35. EVENTS AFTER REPORTING DATE
The Board of Directors of the Company has received the approval from the relevant Stock Exchange authorities for the listing on the offcial
market of the Stock Exchange of Mauritius of up to 10,000,000 unsecured foating rate UBP bonds due 2018 at a nominal value of Rs 100
each by way of a private placement.
36. SEGMENTAL INFORMATION
Operating segment information
The building materials segment is involved in the manufacture and sale of building materials which consists principally of aggregates,
rocksand, hollow-concrete blocks and various concrete building components which constitutes our core business. The retail business under the
building materials segment consist of the sale of roof tiles, imported foor and wall tiles, sanitary ware and a complete range of home building
products and garden accessories.
The agriculture segment is involved in the cultivation of sugar cane, plants and landscaping services.
Management monitors the operating results of its business units separately for the purpose of making decisions about resourcce allocation and
performance assessment. Segment performance is evaluated based on operating proft or loss and is measured consistently with operating
proft or loss in the consolidated fnancial statements.
Transfer prices between operating segments are on an arms length basis in a manner similar to transactions with third parties.
THE GROUP
Building materials Agriculture Consolidation Total
Adjustments
Retail Core
business
2013 Rs000 Rs000 Rs000 Rs000 Rs000
Revenue 705,922 1,881,344 46,896 (190,738) 2,443,424
Operating (loss)/proft (13,419) 296,937 (27,060) - 256,458
Net fnance costs (2,520) (27,419) (2,135) (38,620) (70,694)
Share of results of associates - - - 36,092 36,092
(Loss)/proft before taxation (15,939) 269,518 (29,195) (2,528) 221,856
Income tax (expense)/income (5,849) (37,980) 144 - (43,685)
(Loss)/proft after taxation (21,788) 231,538 (29,051) (2,528) 178,171
Non-controlling interests - - - - (17,412)
(Loss)/proft for the year attributable to the parent (21,788) 231,538 (29,051) (2,528) 160,759
Other segment information:
Segment assets 460,324 3,730,649 982,664 (829,250) 4,344,387
Investment in associates - 110,306 - 88,444 198,750
Total segment assets 460,324 3,840,955 982,664 (740,806) 4,543,137
Total segment liabilities 171,953 1,787,673 73,330 (481,230) 1,551,726
Capital expenditure:
Property, plant and equipment 4,962 143,847 1,635 - 150,444
Intangible assets 623 1,507 - -
2,130
Depreciation and amortisation 13,436 193,975 8,958 - 216,369
36. SEGMENTAL INFORMATION (Contd)
THE GROUP
Building materials Agriculture Consolidation Total
Adjustments
Retail Core
business
2012 Rs000 Rs000 Rs000 Rs000 Rs000
Revenue 734,630 1,943,794 61,993 (159,968) 2,580,449
Operating proft/(loss) 4,797 280,485 (10,650) - 274,632
Net fnance costs (3,052) (14,576) (1,168) (58,035) (76,831)
Share of results of associates - - - 6,084 6,084
Proft/(loss) before taxation 1,745 265,909 (11,818) (51,951) 203,885
Income tax (expense)/income 2,484 (38,703) 3,468 - (32,751)
Proft/(loss) after taxation 4,229 227,206 (8,350) (51,951) 171,134
Non-controlling interests - - - - (21,508)
Proft/(loss) for the year attributable to the parent 4,229 227,206 (8,350) (51,951) 149,626
Other segment information:
Segment assets 483,575 3,614,120 987,863 (713,902) 4,371,656
Investment in associates - 110,306 - 69,122 179,428
Total segment assets 483,575 3,724,426 987,863 (644,780) 4,551,084
Total segment liabilities 171,479 1,825,672 50,063 (396,264) 1,650,950
Capital expenditure
Property, plant and equipment 8,500 353,407 6,403 - 368,310
Intangible assets 1,192 3,601 26 - 4,819
Depreciation and amortisation 15,887 161,903 16,111 - 193,901
37. FINANCIAL REVIEW
2013 2012 2011
THE GROUP Rsm Rsm Rsm
Share capital 265.1 265.1 265.1
Reserves 2,680.7 2,593.6 1,652.2
Shareholders interests 2,945.8 2,858.7 1,917.3
Assets 4,543.1 4,551.0 3,624.3
Liabilities 1,551.7 1,651.0 1,657.7
Revenue 2,443.4 2,580.4 2,591.2
Proft before taxation 221.9 203.9 295.1
Income tax expense (43.7) (32.8) (41.0)
Proft for the year 178.2 171.1 254.1
Dividend (79.5) (72.9) (72.9)
Rs Rs Rs
Rsm Rsm Rsm
Basic net assets value per share 111.12 107.84 72.32
Basic earnings per share 6.06 5.64 8.94
Diluted earnings per share n/a n/a 8.94
Dividend per share 3.00 2.75 2.75
2013 2012 2011
THE COMPANY Rsm Rsm Rsm
Share capital 265.1 265.1 265.1
Reserves 1,931.9 1,825.3 1,558.0
Shareholders interests 2,197.0 2,090.4 1,823.1
Assets 3,430.0 3,408.5 3,148.8
Liabilities 1,233.0 1,318.2 1,325.8
Revenue 1,425.7 1,447.4 1,490.1
Proft before taxation 216.9 209.8 248.3
Income tax expense (31.4) (26.9) (22.4)
Proft for the year 185.5 182.9 225.9
Dividend 79.5 72.9 72.9
-
Rs Rs Rs
Rsm Rsm Rsm
Basic net assets value per share 82.87 78.85 68.77
Basic earnings per share 7.00 6.90 8.52
Diluted earnings per share n/a n/a 8.52
Dividend per share 3.00 2.75 2.75
THE UNITED BASALT PRODUCTS LTD
PROXY FORM
I/We..........of.
... being a shareholder/shareholders of The United Basalt Products Ltd,
do hereby appoint .of.....
............................ failing him/her,.........................................
...................................of..................
as my/our proxy to vote for me/us and on my/our behalf at the Annual Meeting of the Company to be held on Tuesday December 17, 2013
at 15.00 hours and at any adjournment thereof.
I/We wish my/our proxy to vote on the Ordinary Resolutions in the following manner:
1 To consider the Annual Report 2013 of the Company.
2 To receive the report of Messrs Ernst & Young, the Auditors of the Company.
3 To consider and adopt the Companys and the Groups Audited Financial Statements
for the year ended June 30, 2013.
4 To re-elect as Director of the Company, Mr E. Jean Mamet, aged 70, who offers himself
for re-election upon recommendation from the Corporate Governance Committee, to hold
offce until the next Annual Meeting in accordance with Section 138(6) of the
Companies Act 2001.
5-13 To elect as Directors of the Company and by way of separate resolutions, the following
persons who offer themselves for re-election upon recommendation from the Corporate
Governance Committee, to hold offce until the next Annual Meeting:
5 Mr Marc Freismuth
6 Mr Francois Boull
7 Mr Jean Michel Giraud
8 Mr Jol Harel
9 Mr Laurent de la Hogue
10 Mr Arnaud Lagesse
11 Mr Stephane Lagesse
12 Mr Thierry Lagesse
13 Mr Jean Claude Maingard
14 To re-appoint Messrs Ernst & Young as Auditors of the Company for the year ending
June 30, 2014 and to authorise the Board of Directors to fx their remuneration.
Dated this day of ...........2013.
.................
Signature(s)
Notes:
1 A shareholder of the Company entitled to attend and vote at this meeting may appoint a proxy of his/her own choice (whether a
shareholder or not) to attend and vote on his/her behalf.
2 Please mark in the appropriate box how you wish to vote. If no specifc direction as to voting is given, the proxy will exercise his/
her discretion as to how he/she votes.
3 The instrument appointing a proxy or any general power of attorney, duly signed, should be deposited at the registered offce of
the Company, Trianon, Quatre Bornes, not less than twenty-four hours before the time fxed for the holding of the meeting or else the
instrument of proxy shall not be treated as valid.
For Against Abstain
NOTES
NOTES
ANNUAL REPORT 2013
Head Ofce: Trianon, Quatre Bornes, Mauritius
Tel: (+230) 454 1964 - Fax: (+230) 454 8043
Email: info@ubpgroup.com - Web: www.ubpgroup.com
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ANNUAL REPORT 2013

Head Ofce: Trianon, Quatre Bornes, Mauritius

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