Innscor AR 2014

OUR PASSION FOR VALUE CRE ATION
ANNUAL REPORT 2014
Vision
Mission Statement
To build a diversified Pan

African Group focused
on light manufacture,
distribution and retail of
fast moving and durable
consumer goods and the
provision of services to
the mass market.
Innscor Africa Limited is a diversified Pan African

Management Holding Company.
We manufacture, distribute and retail fast moving and
durable consumer goods to the mass market through a
managed and where strategically appropriate, vertically
integrated portfolio of businesses which:
- benefit from being part of our Group
- have the ability and potential to achieve scale and / or
- have the ability to dominate the supply chain
or market in which they operate.
The Group operates under the direction and
management of an active, experienced team who add
value through their industry expertise, deep market
knowledge and entrepreneurial creativity.
Scope of this Report

We are pleased to present the annual report of Innscor Africa Limited,
a company listed on the Zimbabwe Stock Exchange (ZSE), for the year
ended 30 June 2014.
This report is targeted at a broad range of our stakeholders with the
aim of presenting a balanced review of material issues and performance
from our operations. The report also outlines the Groups goal and
ambition, in the years to come, to move towards sustainable business
practices, accountability, transparency and international best practices
as laid out in the Global Reporting Initiatives (GRI) Sustainability
Reporting Guidelines (G4).
This annual report is structured to reflect our initial steps towards
aligning with sustainability reporting guidelines. Our financial
statements are prepared in accordance with International Financial
Reporting Standards (IFRS) and audited by Ernst & Young (Chartered
Accountants Zimbabwe) in accordance with International Standards
on Auditing (ISA). An independent auditors report on the financial
statements is contained on Page 34.
Forward looking Statements
Certain statements in this report constitute forward looking statements.
Such statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results, performances,
objectives or achievements of Innscor Africa Limited to be materially
different from future results, performance, objectives or achievements
expressed or implied in forward looking statements.
David Morgan
Chairman
John Koumides
Group Chief Executive Officer
ANNUAL REPORT 2014
Contents
OVERVIEW
4
Group Structure and Activities
Financial Highlights
GOVERNANCE AND ETHICS APPROACHES
Chairmans Statement and Review of Operations
18
Governance and Approaches
23
Directorate and Management
27
Sustainability Reporting
PERFORMANCE
27
Human Capital Management
28
Corporate Social Investment
31

Directors Responsibility and Approval

of Financial Statements
31
Company Secretarys Certification
33
Report of the Directors
34
Report of the Independent Auditors
35
Group Financial Statements
89
Company Statement of Financial Position
ANNEXURES
90
Shareholders Analysis and Calendar
91
Notice to Members
92
Corporate Information
93
Form of Proxy

MILLING &
PROTEIN
BAKERIES &
FAST FOODS
DISTRIBUTION
GROUP
AFRICA
INNSCOR BREAD
NATIONAL FOODS HOLDINGS LTD
DISTRIBUTION ZIMBABWE
Simon Mazorodze - Harare
National Foods Ltd
Innscor Distribution
Shepperton - Harare
National Foods Properties Ltd
Comox Trading
Lennard Bread - Bulawayo
Botswana Milling and Produce
Eagle Agencies
FAST FOODS
Red Seal Manufacturers
Company (Proprietary) Ltd

(Proprietary) Ltd
ZIMBABWE
Breathaway Food Caterers (Pvt) Ltd

Yamiya Trading (Pvt) Ltd
Brands House Marketing (Pvt) Ltd
Bakers Inn & Mr Baker
45
Chicken Inn
45
Creamy Inn
34
Nandos 12
Pizza Inn
31
Fish Inn
Steers 5
Convenience Stores
Snack Sales and Distribution
Haefelis 2
Inns Express
Afro Foods
Afro Ice
COLCOM HOLDINGS LTD

Triple C Pigs
BAOBAB (PVT) LTD
Colcom Foods Ltd
(Associate company)
Greatrift Delight (Pvt) Ltd

Associated Meat Packers (Pvt) Ltd
HAT ON (PVT) LTD
Intercane (Pvt) Ltd
(Associate company)
Freddy Hirsch Group (Pvt) Ltd

(Associate company)
DISTRIBUTION ZAMBIA
IRVINES ZIMBABWE (PVT) LTD
Comox Trading
DISTRIBUTION MALAWI
REGIONAL FAST FOODS

Bakers Inn
15
Chicken Inn
26
Creamy Inn
36
Pizza Inn
43
Convenience Stores
19
Rhapsodys 1
Galitos 27
Vasilis 1
Fontana (Associate company)
Vida SPAR Deli
Comox Trading
ANNUAL REPORT 2014
ZIMBABWE
NATPAK (PVT) LTD
TV SALES & HOME

TV Sales & Home
SPAR FRANCHISED OUTLETS

SPAR stores
OTHER
BUSINESSES
HOUSEHOLD
GOODS
SPAR
44
SAVEMOR stores
SPAR Express
TOPS bottle stores
Your Space
Samsung concept store
Kunzwana Mart
Appliance Manufacturing
Capri
SPAR CORPORATE STORES
27
SHEARWATER ADVENTURES (PVT) LTD

(Associate company)
BEDRA ENTERPRISES (PVT) LTD
THE RIVER CLUB - Livingstone
Zambia
WRS (World Radio Systems)
Letombo Park SPAR Megasave

Groombridge SPAR
Borrowdale Village SPAR
Mutare SPAR
Golden Stairs SPAR
Joina City SPAR
Borrowdale Brooke SPAR
SPAR DISTRIBUTION
SPAR Distribution Centre
Freshpro
SPAR ZAMBIA
SPAR FRANCHISED OUTLETS
SPAR stores
SPAR CORPORATE STORES

Arcades SPAR
Downtown SPAR
Soweto SPAR
Crossroads SPAR
Northrise SPAR
Foxdale SPAR
Mumbwa SPAR
As part of the continued regional

expansion programme, 3 counters
were opened during the year in
Kenya, 15 in Zambia and 4 in the
Democratic Republic of Congo.
ANNUAL REPORT 2014
Financial Highlights

2014 2013
USD USD
Group Summary
Revenue
1 010 916 667
656 332 118
Operating profit before impairment, depreciation, amortisation and fair value adjustments
80 558 376
67 396 541
Profit before tax
92 415 554
59 369 440
Profit for the year attributable to equity holders of the parent
60 465 321
38 953 790
Cash generated from operating activities
106 822 736
54 161 610
Net assets
316 850 331 192 806 096
Share Performance (cents)

Basic earnings per share
11.16
7.19
4.11
6.36
Interim dividend per share
0.60
0.80
Final dividend per share (prior year)
1.00
1.00
Ordinary Share dividends per share recognised during the year
1.60
1.80
Ordinary Share dividends per share declared and paid since reporting date
0.70
1.00
351 500
74.00
91.02
Headline earnings per share

Ordinary Share dividends declared and paid during the year:
Class A ordinary share dividends recognised and paid since reporting date
Market price per share - 30 June (cents)
Number of shares in issue at 30 June
541 593 440 541 593 440
Market capitalisation
400 779 146 492 958 349
Percentage Contribution to Revenue
Bakeries and Fast Foods (6 204 employees) 24%

Milling & Protein (4 741 employees) 45%
Distribution Group Africa (590 employees) 9%
SPAR (1 319 employees) 15%
Household Goods (575 employees) 5%
Other Businesses & Corporate Services (520 employees) 2%
Chairmans Statement and

Review of Operations
FINANCIAL
market value and carrying value of the Groups existing interest
As advised in the interim report and due to a change in governance
at the date of consolidation. This gain has been excluded from the
structures, the Group has consolidated the results of National Foods
calculation of headline earnings. Also as a result of this change in
Holdings Limited and Irvines Zimbabwe (Private) Limited with
accounting treatment, an intangible asset, in the form of goodwill,
effect from 1 July 2013. These businesses were previously equity
of USD 36.904 million has been recorded in the Groups Statement of
accounted. In undertaking this change in accounting treatment, and
Financial Position. This represents the difference between the fair value
notwithstanding the fact that there has been no change in the Groups
of the Groups existing interest in these investments, and the fair value
shareholding in either of these existing investments, a fair value
of the Groups share of the net assets within these entities.
adjustment is mandatory in terms of IFRS 3 (Business Combinations).
The Group has faced a challenging trading environment for much of
This has resulted in a fair value gain of USD 39.033 million being credited
the financial year under review, and this has been compounded by
to the Groups Statement of Profit or Loss and Other Comprehensive
inefficient management structures in a number of its core businesses;
Income in the current year, and represents the difference between
in many cases gross profit margins were also reduced in an effort to
ANNUAL REPORT 2014

stimulate revenues against a backdrop of reducing disposable incomes.
During the year under review, the Group recorded revenue of USD 1.01 billion,
an operating profit of USD 80.56 million and, after including the fair value
adjustment referred to above, a profit before tax of USD 92.42 million.
Driven by the need to react to the current economic dynamics, the
Group commenced with a number of major restructuring initiatives in
or Loss and Other Comprehensive Income in this regard. Also

affecting profitability during the year under review was a fixed asset
impairment and de-recognition charge of USD 1.83 million which, as
in the prior year, has been excluded from the calculation of headline
earnings. Basic earnings per share amounted to 11.16 US cents whilst
headline earnings per share declined to 4.11 US cents.
the latter part of the year under review. These initiatives were focused
Despite the disappointing trading results, the Groups cash generating ability
primarily on the SPAR operations in Zimbabwe (both Distribution and
was outstanding, with USD 106.82 million being generated from operating
Retail), the Bakery operations and the Zimbabwe Fast Food operations,
activities. This allowed the Group to continue with its asset expansion and
and approximately USD 7.15 million in one-off cost and re-structure
maintenance programmes which consumed USD 48.93 million during the
provisions were processed through the Groups Statement of Profit
year under review, as well as reduce overall net gearing levels.

The Directors have elected to transfer to distributable reserves, the
practices in sustainability reporting by adopting the Global Reporting
portion of non-distributable reserves relating to the remaining
Initiatives (GRI) Sustainability Reporting Guidelines as a framework.
foreign currency conversion reserve amounting to $33.32 million. This

foreign currency conversion reserve arose as a result of the change
in functional currency from the Zimbabwe dollar to the United States
dollar and has been in existence since the change-over period. This
transfer has taken place through the Statement of Changes in Equity
and has no effect on profitability.
This reporting division comprises the Groups Bakery operations

which are based in Zimbabwe as well as all the Fast Food operations
across the African continent.
for long-term, sustainable business success. To this end, the Group
Bread volumes in the Bakery operations declined by 10% as compared

to the prior year. This volume reduction together with an increase
in operating overheads combined to produce a poor overall result
for the business with profitability significantly lower than that
achieved in the prior year. The exercise to consolidate production
at the Graniteside facility is complete, and this together with the
restructuring initiatives embarked upon during the latter part of the
year under review is expected to see the operation return to a more
has set a vision to achieve, in the coming years, international best
satisfactory level of profitability in the forthcoming financial year.
SUSTAINABILITY REPORTING
The Group strives to operate its businesses in a sustainable manner
that recognises environmental and social impacts. The Group
believes that by identifying, measuring and being accountable
to its stakeholders through sustainability reporting (Economic,
Environmental, Social and Governance), this enhances potential
10
OPERATIONS
Bakeries & Fast Foods
ANNUAL REPORT 2014

The automated pie plant commissioned in December 2013 has shown
steady growth and is expected to make an increasing contribution to
the overall results of the operation; this marks the conclusion of the threeyear fixed asset expansion programme within the Bakery operations.
Chegutu and Mvuma, whilst 9 under-performing counters were closed.
The Fast Food Zimbabwe operations recorded customer counts that

were 2% lower than those achieved in the prior year. Notwithstanding
the reduced customer count, performance at shop-level was
generally good across most counters; however the costs to run the
business above-site consumed a large proportion of the profitability.
These costs are predominantly a result of the historical, regionalbased structuring of the operations and hence there is considerable
duplication of function and a resultant unsustainable cost base. The
process to restructure the business is well under way and will result in
a much more streamlined management and reporting structure. The
necessary cost provisioning for this restructure has been accounted for
in the current years income statement. An additional 16 counters were
opened during the year under review across Harare, Bulawayo, Mutare,
3 counters were opened during the year in Kenya, 15 in Zambia and 4
In the Region, the Fast Food operations reported an increase in

customer counts of 4% over the prior year, with a similar increase in
profitability. As part of the continued regional expansion programme,
in the Democratic Republic of Congo. A further 2 counters were added
in Swaziland, which is a franchised territory. As advised in the interim
report, the franchise arrangement in Nigeria was terminated at the
end of December 2013, and investigations are ongoing as to a suitable
structure in which to re-enter this market. A decision was made in the
third quarter to exit the Senegal market as it had limited growth prospects
and had become an increasingly expensive territory to service. A total of
175 counters, inclusive of franchised operations, were in operation at 30
June 2014. With renewed focus being placed on increasing the Groups
regional footprint, a further 55 counters are planned for the regional
territories during the course of the 2015 financial year.
11

Milling & Protein
This reporting division comprises National Foods, Colcom and Irvines.
the year was characterised by high maize prices and viability issues
National Foods produced a very pleasing set of results for the year
for producers, and this resulted in many farmers down-scaling pig
under review driven by sales of 538,000 metric tonnes of product, and
operations. This was in contrast to the second half of the year, which
representing a volume increase of 8% over the prior year. Profits were
saw demand improving, but limited availability of raw product with
enhanced by a highly successful strategic raw material purchasing
which to supply the market. Going forward, Colcoms focus will be
programme as well as improved plant efficiencies which benefited
on securing a stable supply of additional raw material, as well as
from continued modernisation and re-tooling. The strong results
continuing its product development for the growing informal market.
posted have allowed for further strengthening of the balance sheet
Investigations into modernising the current processing plant in
and the business is well positioned to continue its growth in the
Harare will also enter the design and viability phase, whilst a new pie
coming year through the addition of new and adjacent categories.
line is also planned for commissioning during 2015. With additional
Following a difficult 2013, Colcom reported a good set of results

during the current year under review, with overall volumes increasing
by 16%. In the core pork operations, volumes were down by 7%, and as
12
growth amounted to 21%. From a pork perspective, the first half of
stores being planned, as well as growing demand from its existing

network of Texas outlets, plans are at an advanced stage to up-gauge
the capacity at the processing and down-packing facility at AMP.
reported at the interim period this was due mainly to the rationalisation
In contrast to a strong first half of the financial year, the second half
of product lines. This decline was more than compensated for by a
of the year at Irvines was disappointing with significantly reduced
90% volume increase recorded at Associated Meat Packers (AMP)
demand, particularly in the third quarter. Overall for the year, volumes
and driven predominantly by the strong performance of the Texas
of the three core products of frozen chicken, day-old chicks and
branded outlets. After excluding the one-off charges contained
table eggs showed only marginal increases as compared to the prior
in the prior year income statement, overall trading profitability
year, whilst cost increases of its key raw stock feed components resulted
ANNUAL REPORT 2014

in similar profitability being achieved. The business continues with key
SPAR
strategic investments into growing its breeding capacities and capabilities
This reporting division consists of the SPAR Corporate Store retail
as well as into a new feed mill facility, both of which should have a positive
operations in Zimbabwe, the SPAR Distribution Centre in Harare and
effect right through all parts of the operation in the forthcoming year.
the SPAR Corporate Store retail operations in Zambia.
Distribution Group Africa
The SPAR Corporate Store retail operations in Zimbabwe continued to
This reporting division consists of the Distribution Group Africa

operations which operate in Zimbabwe, Zambia and Malawi.
show improvements during the course of the year, and two new stores
The Distribution Group Africa Zimbabwe operations house a number

of leading brands such as Colgate, Tiger Brands, Johnson & Johnson
and Kelloggs. The business reported a volume growth increase of
17% over the comparative year, although this translated to only
marginal revenue growth as a result of a lower average selling price
per unit due in part to a weakening Rand. Operating costs grew ahead
of revenue growth and as a result trading profits were 9% lower than
those recorded in the prior year.
the network, compensating for the loss of Arundel SPAR. Refinements
The Regional Distribution businesses continue to operate in

challenging local environments. Revenue declined by 9% as compared
to the prior year, impacted somewhat by local currency depreciation
in both Zambia and Malawi, and this had a resultant negative effect
on trading profit which declined 14% against the prior year.
being Joina City SPAR and Borrowdale Brooke SPAR were added to
in store structures continued and approximately USD 0.57 million
was processed through the current year income statement in respect
of restructure cost provisions. In the period after the year-end, a
decision was made to exit the Borrowdale Brooke SPAR as, despite
considerable effort, this store was unable to reach consistent levels of
customer counts, which in turn negatively affected profitability. Fixed
Asset impairments in respect of Borrowdale Brooke SPAR and Arundel
SPAR of approximately USD 1.26 million were charged to the current
year income statement in respect of these two store closures.
The SPAR Distribution Centre had a very disappointing year, and as
highlighted in the interim report, this was driven mainly by the fact
that a considerable number of independent stores were unable to
13

maintain any reasonable and consistent trading patterns, whilst debtor
The SPAR Corporate Store retail operations in Zambia continued to
collections were also severely affected. As a result of these factors a
post improving results and despite local currency depreciation, US
decision was made to significantly streamline the Distribution Centre
dollar revenue experienced a 3% increase over the prior year. Gross
operations, and prudent provision was made in the current income
margins remained firm and cost control was good, combining to
statement for any items related to this initiative covering staff
produce a 44% increase in trading profit as compared to the prior
restructure, debtors, stock and creditors. This provision amounted
year. A further corporate store was opened in Lusaka in June 2014
to approximately USD 5.26 million, and was the main impactor on
and this brought the current total network to 14, inclusive of the 7
the overall results of this reporting division. The operation has now
independent stores; an additional corporate store is due for opening
been consolidated to one site and is correctly structured to fulfil its
in Ndola during the first half of the new financial year.
requirements to the store network.
14
ANNUAL REPORT 2014

Household Goods
This reporting division consists of TV Sales & Home and Capri.
TV Sales & Home reported an increase in revenue of 6% over the
prior year; however a marginal reduction in gross margin as well as
an increase in operating costs resulted in a slight decline in trading
profit. The reduction in formally employed customers impacted on the
instalment debtors book which closed at a similar level as compared
to the prior year; collections on the book, however, remained good.
An additional 5 stores were added during the course of the year, with
Rusape the latest to open during the final quarter. Three additional
stores in Machipisa, Chiredzi and Zvishavane are due for opening
during the first quarter of the new financial year, whilst work is also
in progress to enable the operation to transact on a term-basis with
customers who operate in the vast informal sector of the economy.
Operations at Capri were severely impacted by falling local disposable
incomes and despite volumes showing only a 3% decline, this was
at the expense of gross margin which was reduced to stimulate
demand. As a result, and despite good overhead control, current year
trading profits were considerably behind those posted in the prior
year. Exports of product commenced to Zambia and Malawi during
December 2013 and have shown steady growth during the second
half of the financial year. The new refrigerator plant is on schedule
for commissioning during December 2014 and this will see both
an enhanced product being produced as well as improvements in
production efficiencies and costs. Parallel to this, additional export
markets under investigation include Mozambique, Namibia, Botswana
and the Democratic Republic of Congo.
15

Other Businesses
budgeting process during the latter part of the year under review and
With regard to some of the smaller businesses, the Groups packaging
the Board is confident that with the changes to structuring, a much
operation, NatPak, was the stand-out performer, recording a 14%
better trading result can be achieved in the forthcoming year.
increase in trading profit compared to the prior year. The bread bag
In spite of the sub-optimal trading results, generation of free cash
wicketing line, which was commissioned in December 2013, performed
management intends to use this attribute to continue expanding
positively to overall profitability. Investment into new extruding and
its existing businesses and geographic footprint as well as adding
printing capabilities has recently been approved and this will see the
additional synergistic operations in the forthcoming year.
operation having the ability to provide a full flexible packaging range

in the latter part of the forthcoming financial year. Operations at the
core polypropylene sacks division remain stable.
16
has remained a very strong part of the Groups make-up, and
well during the second half of the year under review and contributed
With the continued evolution of the Group in terms of its size,

geographic location and business type, and given the vast opportunities
available for growth both locally and across Africa, appropriate, and
PROSPECTS
more focused leadership structures are currently being implemented to
The current trading environment has necessitated the Group taking
ensure existing businesses operate to plan and that new opportunities
decisive action in the way it operates and is structured. This process
can be adequately investigated and executed upon. This will see the
has resulted in some necessary, one-off cost provisioning in the
Group redefine the way it reports its operations in the future and will
year under review. All Group companies have been through a robust
see substantive management heads appointed to each of its main
ANNUAL REPORT 2014

business categories, who will assume responsibility, together with unit
management, for the performance of each of these portfolios.
USD 189 500 to Innscor Africa Employee Share Trust (Pvt) Ltd.
APPRECIATION
As reported at the interim stage, the Group has an ultimate goal of
I wish to record my appreciation to the executive Directors,
being a true pan-African organisation and it will therefore continue
management and staff for their effort during the year under
to pursue a more balanced portfolio of businesses both in geographic
review. I also wish to thank the non-executive Directors for their
terms as well as business-type.
considerable input as well as the Groups customers, suppliers and
DIVIDEND
other stakeholders for their continued support and loyalty.
The Board has declared a final dividend of 0.70 US cents per share (bringing
the total dividend for the year to 1.30 US cents per share) payable on
or about 10th October 2014 to shareholders registered in the books of
the Company by noon on 26th September 2014. The transfer books and
register of members will be closed on 27th and 28th September 2014.
D L L MORGAN
In line with the Groups indigenisation transaction, approved by shareholders
Chairman
on 24th January 2014, the Directors have also declared a dividend totalling
10 October 2014
17
Governance and
Approaches
Group Governance and Management Approach
Innscor Africa Limited is committed to a Code of Corporate Practices
and Conduct based on the principles laid out in the King Reports and
the Principles of Corporate Governance in Zimbabwe as laid out in
the Manual of Best Practice. The Group is looking forward to aligning
the existing code with the upcoming National Code of Corporate
Governance in Zimbabwe and other such recognised international best
practices in corporate governance. The Directors recognise the need
to conduct the affairs of the Group with principles of transparency,
integrity, accountability and in accordance with generally accepted
corporate practices, in the interests of its shareholders, employees
and other stakeholders. This process enables the Groups shareholders
and stakeholders to derive the assurance that, in protecting and
adding value to Innscor Africa Limiteds financial and human capital
investment, the Group is being managed ethically, according to
prudently determined risk parameters and in compliance with the
best international practices.
Mechanisms for Communication with Stakeholders

The Group provides various platforms for its stakeholders to
communicate with its Board of Directors and senior management.
Such platforms include the Annual General Meeting, press release
announcements on interim and year-end results, investor briefings,
annual reporting to shareholders and exercise of shareholders voting
rights through proxy forms. The Groups website contains a vast array
of updated operational and financial information which can be easily
accessed by all stakeholders.
18
management to lead by following acceptable ethical business practices.

Therefore, all Directors and management are required to declare interests
which might be deemed in conflict with their contracts with the Group.
Board Structure
The Board of Innscor Africa Limited currently comprises three
executive Directors, two independent, non-executive Directors and
two non-independent, non-executive Directors. The Chairman and the
non-executive Directors bring a significant amount of experience and
intuition to guide an active and ambitious executive management
team. The Board meets quarterly to monitor the performance of
management and to ensure proper control over the strategic
direction and governance of the Group. Short biographies of each
of the directors are disclosed on page 20. The Group operates a
decentralised silo structure. Each individual business has a formal
Board with clearly defined responsibilities and objectives, which
is responsible for the day-to-day running of its operations. A
comprehensive financial reporting system ensures that each silo is
brought to account on a monthly basis.
Directors Remuneration
Board and Management Ethics
Remuneration packages for Directors are determined by the Groups

Remuneration Committee. These packages include a guaranteed
salary as well as a performance-related incentive linked to the
achievement of pre-set profit targets and levels of free cash flow.
As at 30 June 2014 there were no loans from the Company to any
Directors. In addition, no share options were issued to any Directors
during the year under review and there were no unexercised share
The Group believes that it is the responsibility of the Board and
options outstanding held by the Directors at 30 June 2014.
ANNUAL REPORT 2014
Governance and
Approaches
SubCommittees:
Committee
Summary Roles & Responsibilities
Audit
The Group has an audit committee that assists the Board in the fulfillment of their duties. The audit committee
of the Board deals, inter alia, with compliance, internal control and risk management. The committee currently
comprises one executive Director and two independent, non-executive Directors. A non-executive Director
chairs the committee. The committee meets at least three times a year with the Groups external and internal
auditors to consider compliance with financial reporting requirements, monitor the appropriateness of accounting
policies and the effectiveness of the systems of internal control and consider the findings of the internal and
external auditors. Both the internal and external auditors have unrestricted access to the audit committee to
ensure their independence and the objectivity of their reports.
Remuneration
The remuneration committee comprises three non-executive Directors and one executive Director who determine,
on behalf of the Board and the shareholders, the individual remuneration packages for the executive Directors
and other executive management. The Groups remuneration policy is to provide packages that attract, retain and
motivate high quality individuals who will contribute substantially to the growth and success of each of the silos in
which the Group operates. Packages primarily include basic salaries, benefits and performance related bonuses.
Finance & Investment
The finance and investment committee is mandated by the Board to set, approve and monitor overall borrowing
limits for the Innscor Africa Limited Group and for the individual companies within the Group. The committee
is responsible for approving financial institutions that the Group can transact with and limits of such transactions.
The committee also sets, approves and monitors the overall capital expenditure investment within the Group and
specifically analyses any expansion capital expenditure and potential business acquisition or disposal prior to
considering approval. The committee comprises one non-executive Director, three executive Directors and one
senior manager of the Group. The committee meets on a fortnightly basis to consider bank facilities, borrowing
positions, capital expenditure, investment opportunities and such other business as may be directed by the Board.
19
Governance and
Approaches
Board of Directors
David Morgan - Non-Executive Chairman (Appointed January 1998)
David Morgan is a Legal Practitioner by profession, having obtained a Bachelor of Commerce and LLB degrees from the University of Cape
Town (South Africa) before going on to obtain a Bachelor of Arts in Economics from Oxford University (United Kingdom). David is currently
one of the senior partners of Coghlan, Welsh and Guest Legal Practitioners which is based in Harare. During his career David has served on
the Boards of various companies in Zimbabwe. In addition to his role as Chairman of Innscor, David also chairs the Groups Remuneration
Committee and is a member of the Groups Audit Committee.
John Koumides - Group Chief Executive Officer (Appointed September 2003)
John Koumides is a former partner of Deloitte in Harare. During his career, John spent nine years at Delta Corporation where he served as
Group Financial Director and his last year as Group Operations Director. John has served on the Innscor Board as both an executive and
non-executive Director over the last eleven years. In addition to being Chief Executive Officer of Innscor, John is a member of the Groups
Remuneration and Audit Committees and chairs the Groups Finance and Investment Committee. John also sits on the boards of Colcom
Holdings Limited and National Foods Holdings Limited, both listed investments of Innscor.
Basil Dionisio - Executive Director (Appointed November 2012)
Basil Dionisio is a founder shareholder of Innscor and helped create the Groups culture and value system. Basil has extensive operational
knowledge of the Groups businesses and has been instrumental in the Groups success in its regional fast food expansion programme. Basils
current operational portfolio covers the Groups Fast Food, Bakeries and SPAR business units. Basil is a member of the Groups Finance and
Investment Committee.
Michael Fowler - Non-Executive Director (Appointed July 1994)
Michael Fowler is a founder shareholder of Innscor and has held a number of managerial positions within the Group including a period
during which he served as Group Chief Executive Officer. Michael was a key driver behind the Groups investment into its crocodile ranching
operations where he has remained as an executive director since its unbundling and separate listing on the ZSE in 2010. Michael is a member
of the Groups Remuneration Committee.
Zinona (Zed) Koudounaris - Non-Executive Director (Appointed April 1996)
Zed Koudounaris completed his tertiary education at Rhodes University in South Africa where he attained a Bachelor of Commerce degree,
majoring in Business and Computer Sciences. Zed is a founder shareholder of the Group and was the driving force behind the initial creation
and success of the Groups core fast food brands. Zed has held a number of positions within the Group including Chief Executive Officer upon
the Groups listing in 1998. Zed remains highly active in pursuing strategic growth opportunities for the Group and providing guidance to its
management team. Zed is a member of the Groups Finance and Investment Committee.
Julian Schonken - Group Financial Director (Appointed October 2007)
Julian Schonken completed his tertiary education at Rhodes University in South Africa, where he attained a Bachelor of Commerce degree. In
1999 and shortly after completing his articles of clerkship and qualifying as Chartered Accountant (Zimbabwe) with Deloitte, Julian joined Innscor
where he has held a number of financial and managerial positions. In October 2007, Julian was appointed to the main Board of Innscor as Group
Financial Director. Julian also sits on the Board of Colcom Holdings Limited and is a member of the Groups Finance and Investment Committee.
Thembinkosi (Themba) Sibanda - Non-Executive Director (Appointed November 2005)
Themba Sibanda completed his tertiary education at the University of Zimbabwe with a Bachelor of Accounting Honours degree. Shortly after
completing his articles of clerkship and qualifying as a Chartered Accountant (Zimbabwe), Themba was admitted into partnership and now has
over 30 years experience in compliance and audit services at Schmulian & Sibanda. Themba currently chairs the Groups Audit Committee and
is also a member of its Remuneration Committee. Themba also sits on the boards of a number of other listed entities in Zimbabwe including
Delta Corporation Limited, Edgars Stores Limited, Padenga Holdings Limited and Pretoria Portland Cement Limited.
20
ANNUAL REPORT 2014
In the Region, the Fast Food

operations reported an increase
in customer counts of 4% over the
prior year, with a similar increase
in profitability.
21
Colcom reported a good set of

results during the current year
under review, with overall volumes
increasing by 16%.
22
ANNUAL REPORT 2014

BOARD OF DIRECTORS
Independent,

Non-Executive Directors
* David Morgan (Chairman)
* Thembinkosi Sibanda
Non-Independent,
Non-Executive Directors
* Michael Fowler
Zinona (Zed) Koudounaris
Executive Directors
* John Koumides
Julian Schonken
Basil Dionisio
Members of the Audit Committee

* Members of the Remuneration Committee
Members of the Finance and Investment Committee

Chairman of the Audit Committee

-
Chairman of the Remuneration Committee
-
Chairman of the Finance and Investment Committee -
Thembinkosi Sibanda
David Morgan
John Koumides
Bakeries and Fast Foods
GROUP EXECUTIVES
John Koumides
Julian Schonken
Group Financial Director
Basil Dionisio
Chief Executive Officer-
Musi Kumbula
Group Corporate Affairs Executive
Innscor Bread
Marcus Athitakis
Owen Murumbi
Crispen Vundla
Mark Swan
Raymond Nyamuziwa Group Treasurer
Fast Foods Harare
Andrew Lorimer
Givemore Munyanyi
Mandla Nkosi
Mary Ndawona
Group Company Secretary
DIVISIONAL MANAGEMENT
Corporate
Managing Director
Financial Director
Procurement Director
Technical Director
Managing Director
Financial Director
Human Resources Director
Fast Foods Matabeleland and Midlands

Warren Meares
Onias Moyo
Misheck Muleya
Managing Director
Financial Director
Human Resources Director
Ray Rambanapasi
Group Financial Manager
Priti Da Silva
Group Services Executive
Joshua Mhike
Group Internal Audit Manager
Fast Foods Mutare
Ronald Gumbo
Group Tax Officer
Farai Machodo
Assistant Group Financial Manager
Teo Yatras
Managing Director
Emmanuel Zvinoitavanhu Financial Director
Kundai Murau
Financial Manager
Treasury
Tanya Chitaukire
Divisional Financial Manager
Salary Services
Chipo Ndudzo
Managing Director
Adele Friend
Technical Director
Innscor Franchising
Manoli Vardas
Takawira Tawengwa
Fortunate Masendeke
Chief Executive Officer

General Manager
Financial Manager
Regional Fast Foods

Leighton Shaw
Hendrik Louw
Operations Director
Financial Manager
23

Milling & Protein
National Foods Holdings Limited
Jeremy Brooke
Group Managing Director
Liberty Murimwa
Michael Lashbrook
Group Operations Director
Johnson Gapu
Group Sales, Marketing &
Craig Hodgson
Victor Kuchocha
Paul Filer
Leonard Kuyimba
Distribution Director
Innscor Distribution Zimbabwe

Craig Hodgson
Kennedy Muchenga
Noel Shangwa
Managing Director
Sales Director
Financial Manager
Rosseweater Usayi
Group Human Resources Executive
Craig Spong
Group IT Executive
Leigh Blakeway
Group Legal Executive
Hope Munyanyi
Group Financial Manager
Comox Trading
Ruvimbo Chikwava
Group Treasury Manager
Chipo Nheta
Managing Executive - Maize Milling
Archie Meth
Alec Gahadzikwa
Mutali Chawanda
Managing Executive - Flour Milling
Daniel Maregedze
Managing Executive - FMCG
Neil Varrie
Piqela Gabaza
Managing Executive - Stockfeeds
Snacks Sales & Distribution
Godwill Nyakwende
Managing Executive - Depots
Albert Oberholzer
Freeman Kuodza
Colcom
Theophillus Kumalo
Dino Tumazos
Financial Director
Norita Adams
Sales & Marketing Director
John Neilson
Commercial Director
Jan Van As
Operations Director
Zvitendo Matsika
Human Resources Executive
Mandy Mutiro
Financial Manager
Ian Kennaird
Chief Executive - Triple C Pigs
Lester Jones
Chief Executive - AMP
Sibusisiwe Dhliwayo
Quality Assurance Manager
Irvines Zimbabwe (Private) Limited
24

Financial Director
Operations Director
Financial Manager
David Irvine
Managing Director
George Economou
Commercial Director
Godfrey Gwainda
Financial Director
Rutendo Dzangai
Financial Manager
Managing Director
Financial Director
Eagle Agencies
Managing Director
Sales Director
Financial Manager
Breathaway
Gareth Rawlins
Managing Director
Distribution - Zambia
Vincent Hogg
Collen Alumando
Managing Director
Financial Manager
Distribution - Malawi
Andrew Bester
Rob Brown
Skallas Smit
Country Manager
Managing Director
Operations Manager
ANNUAL REPORT 2014

SPAR
Household Goods
SPAR Retail
TV Sales & Home
Andrew Divaris
Sean Gorringe
Tineyi Mandengu
Joseph Kamasho
Financial Director
Masimba Mutsai
Group Human Resources Director
Appliance Manufacturing
Josephine Mutsekwa
Sector General Manager
Gary Watson
Francis Muchuchu
Sector Financial Manager
Kevin Tiran
Production Director
Dion Yatras
MD Mutare SPAR
Simba Muchatukwa
Financial Director
Evermary Nyamwanza
GM Groombridge SPAR
Jan Van Der Westhuizen Research & Development Director
Andrew Dobson
GM Borrowdale Village SPAR
Tony Simoes
Marketing Director
Alfred Choga
GM Letombo SPAR
Simba Munondo
Human Resources Manager
Douglas Ngwasha
GM Joina City SPAR
Cuthbert Tsikira
GM Golden Stairs SPAR
Sipho Ndebele
GM Borrowdale Brooke SPAR
Other Businesses
Natpak (Private) Limited
SPAR Distribution
Andrew Divaris
Guy Martell
Managing Director
John Economou
GM Marketing and Merchandise
Tamuka Kunaka
Operations Director
Arthur Gwaku
Warehouse and Logistics Executive
Herbert Mapuranga
Financial Director
Arvine Takadi
Retail Operations Executive
Charles Nyamuba
Financial Manager
Shearwater Adventures (Private) Limited
FreshPro
Mani Lane
General Manager
Mike Davis
Chairman
Butholezwe Mlilo
Financial Director
Allen Roberts
Operations Director
Bedra Enterprises (Private) Limited
SPAR Zambia
Mark ODonnell
Executive Chairman
Mark Masekesa
Managing Director
Roselt van Eyssen
Kennedy Mhakayakora
General Manager - Factory
Johannes Alberts
Chief Financial Officer
Edward Jakarasi
General Manager - Vending Operations
Wellington Gumunyu
Management Accountant
The River Club

Peter Jones
Eugene Marais
General Manager
Dalene Vincent
Financial Manager
25
National Foods produced a very pleasing

set of results for the year under review
driven by sales of 538,000 metric tonnes
of product, and representing a volume
increase of 8% over the prior year.
26
ANNUAL REPORT 2014
Sustainability Reporting
The Group strives to operate its business in a sustainable manner that recognises environmental and social impacts. The Group believes
that identifying, measuring and being accountable to its stakeholders through sustainability reporting (Economic, Environmental, Social and
Governance) has potential for long-term business success. To this end, the Group has set a vision of moving towards sustainable business
practices contained in the Global Reporting Initiatives (GRIs) Sustainability Reporting Guidelines in informing the way we will engage with our
stakeholders, identify material issues, respond to matters and being accountable to our broad range stakeholders.
As part of this vision, the Group will undertake capacity development of established Sustainability Teams. These teams will be responsible
for assisting management with the identification, management and disclosure of material issues pertaining to economic, environmental and
social impacts and opportunities arising from the Groups operations using the GRI Sustainability Guidelines.
Human Capital Management

INNSCOR AFRICA WELLNESS
The Group continues to recognise the importance of health and wellness of its employees and invests in various programmes to achieve the
objective of providing adequate health facilities and continuous education on wellness matters. The focus for the year under review was on
ensuring a healthy and stable workforce and enabling safe working environments through joint efforts of both the employer and employee.
As part of its ongoing commitment, the Group continues to provide:
Education and awareness to employees regarding HIV and AIDS and other wellness and health related issues
Free counselling for employees and their families
On-site wellness and health services that provide support to employees. This includes a Voluntary Counselling and Testing (VCT) programme

to assist in mitigating HIV and AIDS
The Annual Wellness Soccer tournament that fosters a culture of working together and total well-being
The highlight of the 2014 wellness calendar was the Peer Educator Skills Building programme, which focuses on the integral role that peer
educators play not only in behaviour change, but also in implementing the Groups workplace wellness programmes. Another main highlight
was the opening of the Innscor Employee Total Wellness Centre. This facility provides basic primary healthcare for the Groups employees as
well as being a centre for HIV testing. Various health workshops are held at this centre with the aim of providing continued education and
support on matters of health risk and healthcare options available to employees.
27
Human Capital Management (continued)

Business goals achieved by the Wellness program so far include:
Reduced absenteeism
Reduced hospital attendance and admittance
Reduced on-site clinic attendance due to intensive preventative initiatives
Increased staff morale as a result of the program together with ongoing team-building initiatives
Increased routine medical tests
The Group, through its Wellness Centre, continuously links with service providers both public and private, notably the Ministry of Health and
Child Care, City of Harare, National Social Security Authority, SAfAIDS and Zimbabwe Business Council on Aids to ensure that its varying
programmes receive appropriate assistance and support during implementation.
The Group monitors how its services are used and develops them accordingly, working on the assumption that a healthy and happy employee
is more productive at work and less likely to leave. Our employees are very supportive of the Groups wellness services, and this is demonstrated
by the number of employees that attend the many health and wellness events that are held.
Corporate Social Investment

The Group believes that environmental and social factors are part of the business operations and strategy. Therefore, responding to impacts from
our operations is a responsibility and business strategy that has potential for our long-term business values. In the year under review, the Group
undertook a number of initiatives aimed at assisting various environmental, social, academic, animal welfare and sporting and cultural initiatives.
Environment
The Group is conscious of environmental issues and is currently working on a project through its Fast Food operations on further increasing
environmental awareness programmes through its Food courts. As a start to this initiative, the Group adopted the Pomona Shopping Centre
and initiated a clean-up campaign, working closely with the City of Harare. Through the Bakers Inn brand the Group, together with a number
of local schools, participated in the clean-up of Marondera and donated refuse bins towards this cause.
Child Welfare
Child Welfare is an area that the Group has taken a strong interest in. The Group partnered with the Ministry of Womens Affairs, Gender and
Community Development and the United Nations Childrens Fund (UNICEF) to raise awareness against child abuse. During a major gathering
of children, activists, media and other stakeholders, the Group through Chicken Inn, provided food and contributed to publicity material for the
event. The Group is concerned by the plight of children and will continue to participate in events and campaigns that highlight the situation
of Zimbabwes most vulnerable population group.
SPAR continues to support Childline Zimbabwe, an organisation that provides counselling, therapeutic and educational services to vulnerable
children from all socio-economic backgrounds.
Disadvantaged Communities
The Group, through Irvines, National Foods, Bakers Inn, Colcom and Capri continues to extend assistance to various childrens homes, old age
homes and rehabilitation centres across the country. Recipients of this assistance include: Emerald Hill Childrens Home and School for the Deaf,
Jairos Jiri Association, Saint Josephs House for Boys-Kubatana, Valhalla Old Peoples Home, Waterfalls Trust, Athol Evans Centre, Homefields Care
and Education Centre, The Salvation Army Zimbabwe, Good Hope Mothers Trust, Moses Basket Renewal Ministries and Meals on Wheels.
Irvines also recently sponsored and handed over a chicken demonstration project to the people of Chivi in Masvingo Province. This is part
of the Groups initiatives to empower communities and ensure that they are self-sufficient. The project, which has been replicated in other
parts of the country, has received accolades from the community and from Government. Irvines not only built the project, but also provides
technical support and ensures the community has a market for its chicken production.
28
ANNUAL REPORT 2014
Corporate Social Investment (continued)

The Cancer Association of Zimbabwe also continues to benefit from the Groups assistance, helping to support its philosophy of raising cancer
awareness and improving the quality of life of cancer patients and their families.
Assistance, in the form of maize meal and other food stuffs, was also provided by the Group, through National Foods and Bakers Inn, in
supporting the communities that were affected by the flooding of the Tokwe-Mukosi Dam during the course of the year.
Academic
Muguta Secondary School in Epworth has continued to benefit from the Groups involvement. The Group paid for roofing material needed to
complete another classroom block. Epworth is one of the most economically depressed communities in the country and is unable to provide
adequate facilities for education. The situation is exacerbated by the fact that the majority of students at this school are AIDS orphans, unable
to pay fees or levies which are ordinarily channelled to school development projects. The completion of the classroom block will decongest the
school, where on average there are 90 students per class.
Bakers Inn remains very active in academic-based community projects. One of their signature events this year was the purchase and donation
of a school bus for St Michaels School in Mbare.
The Group continues to support the annual Harare Provincial Education Merit Awards, where it donates computers to outstanding high school
academic scholar achievers.
Animal Welfare
National Foods and Colcom continue to support organisations such as the Imire Game Park which focuses on wildlife conservation, game park
management and community education as well as the Tikki Hywood Trust which is involved in the management of endangered species projects.
Sports and Culture
Nandos was one of the principal sponsors of Zimbabwes Wheelchair Racing Team that represented the country at the Outeniqua Wheelchair Challenge
held in South Africa; a wheelchair tournament for disabled athletes. The team performed exceptionally well and brought home a number of medals.
Bakers Inn contributes regularly to various sporting initiatives for schools, among them, Chipembere Primary School, where its assistance
helps to identify local cricket talent, and provides recipients with educational support, coaching, training and giving these young sports people
the necessary exposure through a joint association with Zimbabwe Cricket. These combined efforts are in line with the objective of identifying
key talent in underprivileged areas and nurturing this to allow individuals to participate in future national teams.
Many of the Groups businesses participated in the highly successful Zimbabwe Colour Run 2013 event, which is a community and family
based fun day. Net proceeds of this event were awarded to the Society for the Prevention of Cruelty to Animals and Emerald Hill Childrens
Home and School for the Deaf.
29
With renewed focus being placed

on increasing the Groups regional
footprint, a further 55 counters are
planned for the regional territories
during the course of the 2015
financial year.
30
ANNUAL REPORT 2014
Directors Responsibility and

Approval of Financial Statements
The Directors of the Company are required by the Zimbabwe Companies Act (Chapter 24:03) to maintain adequate accounting records and to
prepare financial statements that present a true and fair view of the state of affairs of the Company and the Group at the end of each financial
year and of the profit and cash flows for the period. In preparing the accompanying financial statements, generally accepted accounting
practices have been followed. Suitable accounting policies have been used and consistently applied, and reasonable and prudent judgements
and estimates have been made.
The principal accounting policies of the Group are consistent with those applied in the previous year and conform to International Financial
Reporting Standards (IFRS).
The Directors have satisfied themselves that the Group is in a sound financial position and has adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they are satisfied that it is appropriate to adopt the going concern basis in preparing the
financial statements.
The Board recognises and acknowledges its responsibility for the Groups systems of internal financial control. Innscor maintains internal
controls and systems that are designed to safeguard the assets of the Group, prevent and detect errors and fraud and ensure the completeness
and accuracy of the Groups records. The Groups Audit Committee has met the external auditors to discuss their reports on the results of their
work, which includes assessments of the relative strengths and weaknesses of key control areas. In a growing Group of the size, complexity
and diversity of Innscor it may be expected that occasional breakdowns in established control procedures may occur; any such breakdowns
have been reported to the Groups Audit Committee and the Board.
The financial statements for the year ended 30 June 2014, which appear on pages 35 to 89, have been approved by the Board of Directors and
are signed on its behalf by:
D L L MORGAN
J P SCHONKEN
Chairman
Executive Director
Harare
10 October 2014
Company Secretarys Certification

For the year ended 30 June 2014
I certify that, to the best of my knowledge and belief, the Company has lodged with the Registrar of Companies all such returns as are required
to be lodged by the Company in terms of the Zimbabwe Companies Act (Chapter 24:03) and all such returns are true, correct and up to date.
A D LORIMER
Company Secretary
Harare
10 October 2014
31
Irvines continues with key strategic

investments into growing its breeding
capacities and capabilities as well as
into a new feed mill facility, both of
which should have a positive effect right
through all parts of the operation in the
forthcoming year.
32
ANNUAL REPORT 2014
Report of the Directors

The Directors have pleasure in presenting their report together with the audited financial statements of the Group for the year ended 30 June 2014.
Share Capital
At 30 June 2014 the authorised share capital of the Company was comprised of 800 000 000 ordinary shares of USD 0.01 (one cent) each and
1 000 Non-Voting Class A ordinary shares of USD 0.01 (one cent) each. Issued share capital was at USD 5 415 944 divided into 541 593 440
ordinary shares of USD 0.01 (one cent) each and 1 000 Non-Voting Class A ordinary shares of USD 0.01 (one cent) each.
Group Results
USD
92 415 554
Profit before tax

Tax
( 13 614 862 )
Profit for the year
78 800 692
( 18 335 371 )
Non-controlling interests
60 465 321
Dividends
Ordinary shares
The Board declared an interim dividend of 0.60 US cents per share and a final dividend of 0.70 US cents per share. This brings the total dividend
in respect of the 2014 financial year to 1.30 US cents per share.
Non-voting class A ordinary shares
The Board declared an interim dividend of USD 162 000 and a final dividend of USD 189 500 to Innscor Africa Employee Share Trust (Pvt) Ltd. This
brings the total dividend in respect of the 2014 financial year to USD 351 500, all of which has been recognised and paid after the reporting date.
Reserves
The movement in the reserves of the Group and the Company are shown in the notes to the Group financial statements. The Directors have elected
to transfer USD 33 321 945 to distributable reserves relating to the remaining foreign currency conversion reserve.
Directors and their Interests
In terms of the articles of association Mr. J. Koumides and Mr. T.N. Sibanda retire by rotation at the Annual General Meeting and being eligible offer
themselves for re-election. No Directors had, during or at the end of the year, any material interest in any contract of significance in relation to
the Groups businesses. The beneficial interests of the Directors in the shares of the Company are given in note 19.4 of the financial statements.
Directors Fees
Members will be asked to approve the payments of the Directors fees in respect of the year ended 30 June 2014.
Auditors
Members will be asked to approve the remuneration of the auditors for the financial year ended 30 June 2014 and to reappoint Ernst & Young
as auditors of the Group to hold office for the ensuing year.
For and on behalf of the Board.
D L L MORGAN
A D LORIMER
Chairman
Company Secretary
10 October 2014
33
Report of the Independent Auditors

Ernst & Young
Chartered Accountants (Zimbabwe)
Registered Public Auditors
Angwa City
Cnr Julius Nyerere Way
Kwame Nkrumah Avenue
P.O. Box 62 or 702
Harare
Zimbabwe
Tel: +263 4 750905 / 750979

Fax: +263 4 750707 / 773842
Email: admin@zw.ey.com
www.ey.com
TO THE MEMBERS OF INNSCOR AFRICA LIMITED

Report on the financial statements
We have audited the accompanying consolidated financial statements of Innscor Africa Limited set out on pages 35 to 89, which comprise the
Group Statement of Financial Position as at 30 June 2014, the Group Statement of Profit or Loss and Other Comprehensive Income, the Group
Statement of Changes in Equity and the Group Statement of Cash Flows for the year then ended, the notes to the financial statements which
include a summary of significant accounting policies and other explanatory information.
Directors responsibility for the financial statements
The Companys Directors are responsible for the preparation and fair presentation of these consolidated financial statements in accordance
with International Financial Reporting Standards and in the manner required by the Companies Act (Chapter 24:03), and for such internal
controls as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance
with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entitys internal controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Innscor Africa Limited as at 30 June
2014, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
Report on other legal and regulatory requirements
In our opinion, the consolidated financial statements have, in all material respects, been properly prepared in compliance with the disclosure
requirements of the Companies Act (Chapter 24:03) and the relevant Statutory Instruments (SI 33/99 and SI 62/96).
Ernst & Young

Registered Public Auditors
HARARE
10 October 2014
34
ANNUAL REPORT 2014
Group Statement of Profit or Loss

and Other Comprehensive Income
for the year ended 30 June 2014
2014 2013

Notes
Revenue
USD
USD
8 1 010 916 667 656 332 118
Cost of sales ( 667 634 616 ) ( 418 456 898 )

Gross profit 343 282 051 237 875 220
other income
11 408 227
18 522 992
operating expenses ( 274 131 902 ) ( 189 001 671 )

9
80 558 376
67 396 541
impairment and derecognition of plant and equipment
( 1 832 590 )
( 2 232 728 )
Operating profit before impairment, depreciation, amortisation and fair value adjustments
depreciation and amortisation ( 23 372 437 ) (14 842 013 )

fair value adjustments on listed equities
69 552
( 14 713 )
fair value adjustments on biological assets
1 718 545
384 384
fair value adjustments on obtaining control of subsidiaries
39 033 279
Profit before interest, equity accounted earnings and tax
96 174 725
50 691 471
interest income
1 715 958
1 630 624
interest expense
( 7 816 526 )
( 4 699 274 )
14
2 341 397
11 746 619
Profit before tax
92 415 554
59 369 440
equity accounted earnings
tax
10 ( 13 614 862 ) ( 10 770 549 )
Profit for the year
78 800 692
48 598 891
exchange differences arising on the translation of foreign operations
( 769 235 )
( 520 379 )
Other comprehensive income for the year, net of tax
( 769 235 )
( 520 379 )
Total comprehensive income for the year
78 031 457
48 078 512
equity holders of the parent
60 465 321
38 953 790
non-controlling interests
18 335 371
9 645 101
78 800 692
48 598 891
equity holders of the parent
59 875 073
38 536 687
non-controlling interests
18 156 384
9 541 825
78 031 457
48 078 512
Other comprehensive income - to be recycled to profit or loss
Profit for the year attributable to:
Total comprehensive income for the year attributable to:
Earnings per share (cents)

Basic earnings per share
11.16
7.19
Headline earnings per share
4.11
6.36
Diluted basic earnings per share
11.16
7.19
Diluted headline earnings per share
4.11
6.36
35
Group Statement of
Financial Position
as at 30 June 2014
2014 2013

ASSETS
Non-current assets
property, plant and equipment
intangible assets
investments in associates
financial assets
biological assets
deferred tax assets
Notes USD USD
12 228 891 391

13 41 788 631
14
8 786 704
15
4 460 139
16
1 374 701
22 10 389 695
139 615 506

3 256 491
50 191 580
1 505 551
1 258 838
7 926 277
295 691 261

Current assets
financial assets
15
3 252 442
biological assets
16 12 104 397
inventories
17 105 231 782
trade and other receivables
18 94 850 142
cash and cash equivalents 37 118 340
203 754 243
252 557 103
144 821 393
Total assets 548 248 364
348 575 636
2 891 981
1 626 843
54 670 380
62 448 385
23 183 804
EQUITY AND LIABILITIES

Capital and reserves
ordinary share capital
class A ordinary share capital
non-distributable reserves
distributable reserves
19
5 415 934
5 415 934
19
10
20 ( 5 294 128 ) 28 618 065
21 208 458 801 123 393 018
208 580 617

non-controlling interests 108 269 714
Total equity
157 427 017

35 379 079
316 850 331 192 806 096
Non-current liabilities
deferred tax liabilities
22 33 225 358
16 642 460
interest-bearing borrowings
23 17 263 414
2 965 392
50 488 772
19 607 852
Current liabilities
23 46 806 665
51 440 923
trade and other payables
24 125 839 690
79 090 682
provisions
25
6 299 238
5 058 199
current tax liabilities
1 963 668
571 884
180 909 261
136 161 688
Total liabilities 231 398 033 155 769 540

Total equity and liabilities 548 248 364 348 575 636
D L L MORGAN J P SCHONKEN
Chairman Executive Director
Harare
10 October 2014
36
ANNUAL REPORT 2014
Group Statement of
Changes in Equity

attributable to equity holders of the parent

Class A
Non-

Ordinary
Ordinary Distributable Distributable

Share Capital Share Capital
Reserves
Reserves
Total

USD
Balance at 30 June 2012
5 415 934
USD
USD
- 29 035 168
USD
97 965 286 132 416 388
Profit for the year
Other comprehensive income
( 417 103 )
Total comprehensive income
( 417 103 )
Dividends paid
- ( 9 748 682 )
Transactions with owners

in their capacity as owners*
5 415 934
- 38 953 790 38 953 790

-
( 3 777 376 )
( 9 748 682 )
( 3 777 376 )
- 28 618 065 123 393 018 157 427 017
Other comprehensive income
( 590 248 )
Total comprehensive income
( 590 248 )
Issue of class A ordinary shares
10
Dividends paid
- ( 8 665 495 )
Transactions with owners

in their capacity as owners*
Transfer of foreign currency

conversion reserve
- ( 33 321 945 )
5 415 934
( 417 103 )
38 953 790 38 536 687
Profit for the year
USD
- 60 465 321
Noncontrolling
Interests
Total
USD
USD
28 062 807 160 479 195

9 645 101
48 598 891
( 103 276 )
( 520 379 )
9 541 825 48 078 512

( 2 025 583 ) ( 11 774 265 )
( 199 970 )
( 3 977 346 )
35 379 079 192 806 096
60 465 321 18 335 371 78 800 692

( 590 248 )
( 178 987 )
( 769 235 )
60 465 321 59 875 073 18 156 384 78 031 457

-
( 55 988 )
10
( 8 665 495 )
( 55 988 )
33 321 945
10
( 5 799 852 ) ( 14 465 347 )

60 534 103
60 478 115
10 ( 5 294 128 ) 208 458 801 208 580 617 108 269 714 316 850 331
* Transactions with owners in their capacity as owners are explained as follows:

i Amounts included under attributable to equity holders of parent relate to the difference between the purchase price and carrying
amount of non-controlling interests on acquisitions of non-controlling interests share in subsidiaries of the Group.
ii Amounts included under non-controlling interests relate to carrying amounts of non-controlling interests share being acquired as well
as capital injections by non-controlling interests. The significant amount recorded in the current year arose when the Group obtained
control in National Foods Holdings Ltd and Irvines Zimbabwe (Pvt) Ltd as highlighted in note 11.4.
37
Group Statement of Cash Flows

Notes 2014 2013
USD USD
Cash generated from operating activities
11.1 106 822 736
interest income
1 715 958
1 630 624
interest expense
( 7 816 526 )
( 4 699 274 )
11.2 ( 12 690 797 )
( 10 109 626 )
tax paid
Total cash available from operations

Investing activities
88 031 371
40 983 334
11.3 ( 47 840 124 ) ( 43 286 425 )
Net cash flow before financing activities
40 191 247 ( 2 303 091 )
Financing activities ( 26 256 711 )
38
54 161 610
3 031 328
dividends paid by holding company
( 8 665 495 )
( 9 748 682 )
dividends paid by subsidiaries to non-controlling interests
( 5 799 852 )
( 2 025 583 )
issue of class A ordinary shares
10
proceeds from borrowings
56 185 782
94 255 569
repayment of borrowings (67 827 025 )
( 81 068 990 )
cash (paid to)/received from non-controlling interests
( 150 131 )
1 619 014
Net increase in cash and cash equivalents
13 934 536
728 237
Cash and cash equivalents at the beginning of the year
23 183 804
22 455 567
Cash and cash equivalents at the end of the year
37 118 340
23 183 804
ANNUAL REPORT 2014
Notes To The Financial Statements

1
The consolidated financial statements of Innscor Africa Limited for the year ended 30 June 2014 were authorised for issue in
accordance with a resolution of the Directors on 10 October 2014. Innscor Africa Limited is a limited liability company incorporated
and domiciled in Zimbabwe whose shares are publicly traded on the Zimbabwe Stock Exchange. The principal activities of the Group
include the light manufacture, distribution and retailing of fast moving and durable consumer goods.
Statement of compliance
The Groups financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standard Board (IASB). The consolidated financial statements have been prepared in compliance with
the Zimbabwe Companies Act (Chapter 24:03).
2.1
Going concern
The Directors have satisfied themselves that the Group is in a sound financial position and has adequate resources to continue in
operational existence for the foreseeable future. Accordingly, they are satisfied that it is appropriate to adopt the going concern basis
in preparing the consolidated financial statements.
2.2
Basis of preparation
The consolidated financial statements are based on statutory records that are maintained under the historical cost convention except
for biological assets and certain financial instruments that have been measured at fair value. The consolidated financial statements
are presented in United States Dollars (USD).
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 30 June 2014.
Subsidiaries are fully 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 financial 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 and dividends resulting from intra-group transactions are
eliminated in full.
A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.
Losses are attributed to the non-controlling interest even if that results in a deficit balance. 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 deficit in profit or loss
Reclassifies the parents share of components previously recognised in other comprehensive income to profit or loss or retained
earnings as appropriate
Changes in accounting policy and disclosures

The accounting policies adopted are consistent with those of the previous financial year except as follows:
4.1
New and Amended IFRSs adopted

The Group has adopted the following new and amended IFRSs as of 1 July 2013:
IAS 19 Employee Benefits
IASB has issued numerous amendments to IAS 19. These range from fundamental changes such as removing the corridor mechanism and
the concept of expected returns on plan assets to simple clarifications and re-wording. The more significant changes include the following:
39

- For defined benefit plans, the ability to defer recognition of actuarial gains and losses (i.e. the corridor approach) has been removed.
As revised, actuarial gains and losses are recognised in Other Comprehensive Income (OCI) when they occur. Amounts recorded in
profit or loss are limited to current and past service costs, gains or losses on settlements, and net interest income (expense). All other
changes in the net defined benefit asset (liability) are recognised in OCI with no subsequent recycling to profit or loss.
- Objectives for disclosures of defined benefit plans are explicitly stated in the revised standard, along with new or revised disclosure
requirements. These new disclosures include quantitative information of the sensitivity of the defined benefit obligation to a reasonably
possible change in each significant actuarial assumption.
- Termination benefits will be recognised at the earlier of when the offer of termination cannot be withdrawn, or when the related
restructuring costs are recognised under IAS 37.
- The distinction between short-term and other long-term employee benefits will be based on expected timing of settlement rather
than the employees entitlement to the benefits.
The Group considered the above changes when accounting for termination benefits, short-term and long-term employee benefits and
there was no significant impact on its financial statements.
IAS 27 Separate Financial Statements
As a consequence of the new IFRS 10 and 12, what remains of IAS 27 is limited to accounting for subsidiaries, jointly controlled entities
and associates in separate financial statements. Accordingly, this did not have an impact on the Groups consolidated financial statements.
IAS 28 Investments in Associates and Joint Ventures
As a consequence of the new IFRS 11 and 12, IAS 28 has been renamed Investments in Associates and Joint Ventures. It describes the
application of the equity method to investments in joint ventures in addition to associates. This did not have an impact on the Group
as it does not have any investments in joint ventures accounted for using the proportionate consolidation method.
IAS 32 Financial Instruments: Presentation
The amendment clarifies that income tax related to distributions to equity holders and income tax related transaction costs of an
equity transaction are accounted for in accordance with IAS 12 Income Taxes (this includes determining whether the income tax is
recognised in profit or loss or immediately in equity).
IFRS 7 Financial Instruments Disclosures (Amendment)
These amendments require an entity to disclose information about rights of 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 financial position. Disclosures are required for all recognised financial instruments that are set off in accordance with IAS
32 Financial Instruments: Presentation, and any recognised financial 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. This standard did not have any
impact on the Groups financial statements.
IFRS 10 Consolidated Financial Statements
IFRS 10 replaces the portion of IAS 27 Consolidated and Separate Financial Statements that addresses the accounting for consolidated
financial statements. It also includes the issues raised in SIC 12 Consolidation - Special Purpose Entities. IFRS 10 establishes a single
control model that applies to all entities. The changes now require management to make significant judgement to determine which
entities are controlled and therefore required to be consolidated by the parent. The Group has applied the provisions of IFRS 10 in
determining which entities it consolidates.
IFRS 11 Joint Arrangements
IFRS 11 replaces IAS 31 Interest in Joint Ventures and SIC 13 Jointly Controlled Entities - Non-Monetary Contributions by Ventures.
IFRS 11 uses some of the terms that were used in IAS 31 but with different meanings. IFRS 11 focuses on the nature of the rights and
obligations arising from the arrangement compared to the legal form in IAS 31. IFRS 11 uses the principle of control in IFRS 10 to
determine joint control which may change whether joint control exists. IFRS 11 addresses only two forms of joint arrangements; joint
40
ANNUAL REPORT 2014

operations where the entity recognises its assets, liabilities, revenues and expenses and/or its relative share of those items and joint
ventures which are accounted for on the equity method.
This standard did not have any impact on the Groups financial statements.
IFRS 12 Disclosures of Interest in Other Entities
IFRS 12 includes all the disclosures that were previously required relating to an entitys interests in subsidiaries, joint arrangements, associates
and structured entities as well as a number of new disclosures. An entity is now required to disclose the judgements made to determine
whether it controls another entity. IFRS 12 disclosures, where applicable, have been provided in the notes to the financial statements.
IFRS 13 - Fair Value Measurement
IFRS 13 establishes a single framework for all fair value measurement when fair value is required or permitted by IFRS. IFRS 13 does
not change when an entity is required to use fair value but rather describes how to measure fair value under IFRS when it is permitted
or required by IFRS. There are also consequential amendments to other standards to delete specific requirements for determining fair
value. The provisions for IFRS 13 have been applied where appropriate.
4.2
Standards and interpretations in issue not yet effective

Standards issued but not yet effective up to the date of issuance of the Groups financial statements are listed below. This listing is
of standards and interpretations issued, which the Group reasonably expects to be applicable at a future date. The Group intends to
adopt these standards when they become effective.
IAS 16 and IAS 41 Accounting for Bearer Plants
IAS 41 Agriculture currently requires all biological assets related to agricultural activity to be measured at fair value less costs to sell.
This is based on the principle that the biological transformation that these assets undergo during their lifespan is best reflected by fair
value measurement. However, there is a subset of biological assets, known as bearer plants, which are used solely to grow produce
over several periods. At the end of their productive lives they are usually scrapped. Once a bearer plant is mature, apart from bearing
produce, its biological transformation is no longer significant in generating future economic benefits. The only significant future
economic benefits it generates come from the agricultural produce that it creates.
The IASB decided that bearer plants should be accounted for in the same way as property, plant and equipment in IAS 16 Property,
Plant and Equipment, because their operation is similar to that of manufacturing. Consequently, the amendments include them within
the scope of IAS 16, instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41.
The amendment is effective for annual periods beginning on or after 1 January 2016.
IAS 16 and IAS 38 - Clarification of Acceptable Methods of Depreciation and Amortisation
The IASB issued amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets prohibiting the use of revenuebased depreciation methods for fixed assets and limiting the use of revenue-based amortisation methods for intangible assets. The
amendments are effective prospectively.
The amendment is effective for annual periods beginning on or after 1 January 2016.
IAS 32 Financial Instruments: Presentation
The amendments clarify the meaning of currently has a legally enforceable right of set-off; and that some gross settlement systems may
be considered equivalent to net settlement. The amendments are required to be applied retrospectively. This means that the right of set-off:
must not be contingent on a future event; and

must be legally enforceable in all of the following circumstances:

- the normal course of business;

- the event of default; and
- the event of insolvency or bankruptcy of the entity and all of the counterparties.
The Group is currently assessing the impact of these amendments on adoption.

The amendment is effective for annual periods beginning on or after 1 July 2014.
41

IAS 36 Impairment of Assets
The amendments clarify the disclosure requirements about the recoverable amount of impaired assets if that amount is based on fair
value less costs of disposal. The amendments clarify the IASBs original intention: that the scope of these disclosures is limited to the
recoverable amount of impaired assets that is based on fair value less costs of disposal.
These improvements are effective for annual periods beginning on or after 1 January 2014.
IAS 39 - Novation of Derivatives and Continuation of Hedge Accounting
The amendments provide an exception to the requirement to discontinue hedge accounting in certain circumstances in which there is
a change in counterparty to a hedging instrument in order to achieve clearing for that instrument. The amendments cover novations:
- That arise as a consequence of laws or regulations, or the introduction of laws or regulations.
- Where the parties to the hedging instrument agree that one or more clearing counterparties replace the original counterparty to
become the new counterparty to each of the parties.
- That did not result in changes to the terms of the original derivative other than changes directly attributable to the change in
counterparty to achieve clearing.
All of the above criteria must be met to continue hedge accounting under this exception.
The amendments cover novations to central counterparties, as well as to intermediaries such as clearing members, or clients of the
latter that are themselves intermediaries.
For novations that do not meet the criteria for the exception, entities have to assess the changes to the hedging instrument against
the derecognition criteria for financial instruments and the general conditions for continuation of hedge accounting.
These improvements are effective for annual periods beginning on or after 1 January 2014.
IFRS 9 - Financial instruments
IFRS 9 reflects the IASBs work on the replacement of IAS 39, and which was undertaken in several phases since 2009. The final version
of IFRS 9 was issued in May 2014 and applies to classification and measurement of financial assets and financial liabilities, impairment
of financial assets as well as hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018.
IFRS 15 - Revenue from Contracts with Customers
The IASB and FASB have issued their joint revenue recognition standard, IFRS 15 Revenue from Contracts with Customers, which
replaces all existing IFRS and US GAAP revenue requirements. The core principle of IFRS 15 is that revenue is recognised to depict the
transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services.
IFRS 15 establishes a five-step model that will apply to revenue earned from a contract with a customer (with limited exceptions), regardless
of the type of revenue transaction or the industry. The standards requirements will also apply to the recognition and measurement of
gains and losses on the sale of some non-financial assets that are not an output of the entitys ordinary activities (e.g. sales of property,
plant and equipment or intangibles). Extensive disclosures will be required, including disaggregation of total revenue; information about
performance obligations; changes in contract asset and liability account balances between periods and key judgements and estimates.
The standard is effective for annual periods beginning on or after 1 January 2017, but early adoption is permitted under IFRS. The
Group is still assessing the impact of the standard on its contracts with customers.
IFRIC 21 - Levies
This standard becomes effective for annual periods beginning on or after 1 January 2014. IFRIC 21 provides guidance on when to
recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.
The interpretation clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by the
relevant legislation, occurs. It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment occurs
42
ANNUAL REPORT 2014

over a period of time, in accordance with the relevant legislation. For a levy that is triggered upon reaching a minimum threshold, the
interpretation clarifies that no liability should be recognised before the specified minimum threshold is reached.
5
Summary of significant accounting policies
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be
reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payments and excluding discounts, rebates, and value added tax. Instalment sales are accounted for when the risks
and rewards of ownership are passed to the buyer. However, finance charges related to hire purchase sales are credited to revenue
over the period of the settlement. The Group assesses its revenue arrangements against specific criteria in order 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 following
specific recognition criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the
buyer, usually upon delivery and when the entity retains neither continual managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold.
Interest income
Revenue is recognised as interest accrues using the effective interest method (that is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset).
Dividends
Revenue is recognised when the Groups right to receive the payment is established.
Rental income
Rental income arising from operating leases on properties is accounted for on a straight line basis over the lease terms.
Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part
of the cost of that asset. All other borrowing costs are expensed as incurred.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs
eligible for capitalisation on that asset is determined as the actual borrowing costs incurred on that borrowing during the period less
any investment income on the temporary investment of those borrowings.
To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the amount of borrowing
costs eligible for capitalisation is determined by applying a capitalisation rate to the expenditures on that asset. The capitalisation
rate is the weighted average of the borrowing costs applicable to the borrowings of the entity that are outstanding during the period,
other than borrowings made specifically for the purpose of obtaining a qualifying asset.
Employee benefits
Short-term benefits
The cost of all short-term employee benefits, such as salaries, employee entitlements to leave pay, bonuses, medical aid and other
contributions, are recognised during the period in which the employee renders the related service. The Group recognises the expected cost
of bonuses only when the Group has a present legal or constructive obligation to make such payment and a reliable estimate can be made.
Retirement benefit costs
Retirement benefits are provided for Group employees through the Innscor Africa Limited Pension Fund, the Catering Industry Pension
Fund, National Foods Pension Fund, Colcom Pension Fund as well as the SPAR Harare Pension Fund and other pension funds in foreign
subsidiaries. The Groups pension schemes are defined contribution schemes and the cost of retirement benefits is determined by the
43

level of contributions made in terms of the rules. Contributions to defined contribution retirement plans are recognised as an expense
when employees have rendered service entitling them to the contributions.
All eligible employees contribute to the National Social Security Authority defined contribution pension scheme, or the equivalent in
foreign subsidiaries. The cost of retirement benefits applicable to the National Social Security Authority, which commenced operations
on 1 October 1994, is determined by the systematic recognition of legislated contributions.
Leases
The determination of whether an arrangement contains a lease depends on the substance of the arrangement at inception date and
requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and whether
the arrangement conveys a right to use the assets.
Leases where all the risks and benefits of ownership of the asset are not transferred to the Group are classified as operating leases.
Operating lease payments are recognised as an expense in profit or loss on a straight line basis over the lease period.
Royalties
Royalties are calculated as per agreed contracts and are expensed on an accrual basis.
Foreign currency translation
The Groups financial statements are presented in United States Dollars, which is the Groups functional and presentation currency.
Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency. Transactions in foreign currencies are initially recorded at the functional currency rate of
exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at
the functional currency rate of exchange ruling at the reporting date. All differences are taken to profit or loss with the exception of
differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are recognised
in other comprehensive income until the disposal of the net investment, at which time they are recognised in profit or loss. The tax
charges and credits attributable to exchange differences on those borrowings are also recognised in other comprehensive income.
Non-monetary items that are measured in terms of the historical cost basis in a foreign currency are translated using the exchange
rates ruling at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated
using the exchange rates as at the dates when the fair value was determined. The gain or loss arising on retranslation of nonmonetary items is treated in line with the recognition of gain or loss on change in fair value of the item.
Foreign operations
Assets and liabilities of subsidiaries and associated companies denominated in foreign currencies are translated into United States
Dollars at rates of exchange ruling at reporting date and their statements of comprehensive income results are translated at the
average rate of exchange for the period. The average rate of exchange is calculated by dividing the summation of the opening rate
and the closing rate by two. Where there are drastic movements between the opening and closing rates of exchange, the statement
of comprehensive income results are translated on a month on-month basis using the average rate of exchange for each month.
Differences on exchange arising from re-translation of the opening net investment in subsidiaries and associated companies and from
the translation of the results of those entities at average rates, are recognised in other comprehensive income. Upon divestment from
a foreign operation, translation differences related to that entity are taken to profit or loss.
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 measures the non-controlling interest in the acquiree either at fair value or at the
proportionate share of the acquirees identifiable net assets. Acquisition costs incurred are expensed.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification 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
44
ANNUAL REPORT 2014

stages, the acquisition date fair value of the Groups previously held equity interest in the acquiree is re-measured to fair value as at
the acquisition date through profit or loss.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes
to the fair value of the contingent consideration, that is a financial instrument, is recognised in accordance with IAS 39 either in profit
or loss or as a change to other comprehensive income. If the contingent consideration is classified as equity, it is not re-measured
until it is finally settled within equity.
Goodwill is initially measured at cost, being the excess of the consideration transferred over the Groups net identifiable assets
acquired and liabilities assumed and the amount recognised for non-controlling interest. If this consideration is lower than the fair
value of the net assets of the subsidiary acquired, the difference is recognised in profit or loss as bargain purchase gain. 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 benefit 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.
Property, plant and equipment
Plant and equipment are stated at cost, excluding the costs of day to day servicing, less accumulated depreciation and accumulated
impairment losses. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of plant and
equipment are requiring replacement in intervals, the Group recognises such parts as individual assets with specific useful lives and
depreciation, respectively. 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 satisfied. All other repair and maintenance costs are recognised in profit
or loss as incurred. The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of
the respective asset if the recognition criteria for a provision are met.
Land is carried at cost whereas buildings are carried at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is calculated on a straight line basis over the expected useful lives of the assets such that the cost is reduced to the
residual values of the assets over the useful lives of the assets.
The various rates of depreciation are listed below:
Freehold property
Buildings and improvements
Leasehold improvements
Plant, Fittings and Equipment -
Vehicles
- 2%
- 2.5%
- the lesser of period of lease or 10 years
- 3% - 25%
- 10% - 30%
The carrying values of plant and equipment are reviewed for impairment annually, or earlier where indications are that the carrying
value may be irrecoverable. When the carrying amount exceeds the estimated recoverable amount, assets are written down to the
recoverable amount.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying value of the asset) is included in profit or loss in the year the asset is derecognised.
The residual values, useful lives and depreciation methods of property, plant and equipment are reviewed by the Group, and
prospectively adjusted if necessary, on an annual basis. Depreciation is not charged when the carrying amount of an item of property,
plant and equipment becomes equal or less than the residual value.
45

Intangible assets
Intangible assets acquired separately are initially measured and recognised at cost. The cost of intangible assets acquired in a business
combination is their fair value 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 charged to profit or loss in the year in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over their useful economic lives and are assessed for impairment whenever there is an
indication that the intangible assets are impaired. The amortisation expense and impairment losses on intangible assets are recognised
in profit or loss in the period in which they occur.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually.
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 profit or loss when the asset is derecognised.
Impairment of non-financial assets
The Group assesses at each reporting date, or earlier where indications that impairment exists, whether an asset may be impaired. This
entails estimating the assets recoverable amount, which is the higher of the assets fair value less costs to sell and value in use. Where
the assets carrying amount exceeds its recoverable amount, the asset is considered impaired and its carrying amount is written down
to its recoverable amount. In assessing the value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of time value of money and the risks specific to the asset. Impairment
losses are recognised in profit or loss in those expense categories consistent with the function of the impaired asset.
For assets excluding goodwill, an assessment is made at each reporting date as to whether previously recognised impairment losses
may no longer exist or have decreased. If such indication exists, the recoverable amount is estimated in order to reverse the previously
recognised impairment losses. A previously recognised impairment loss is reversed only to the extent that there has been a change in
the estimates used in determining the assets recoverable amount since the last impairment loss was recognised. If that is the case
the assets carrying amount is increased to its recoverable amount. However, the increased carrying value of the asset is limited to
the carrying value determinable, net of depreciation, had the impairment not occurred. Such reversal is taken to profit or loss. After
the reversal, the depreciation charge is adjusted in future periods to allocate the revised carrying amount, less any residual value, on
a systematic basis over the remaining useful life.
Investments in associates
The Groups investments in associates are accounted for using the equity method of accounting. Associates are entities in which the
Group exercises significant influence and which are neither subsidiaries nor jointly controlled operations. Under the equity method,
investments in associates are initially carried in the statement of financial position at cost. Subsequently, the investments in associates
are carried at cost plus post-acquisition changes in the Groups share of the reserves of the associates less dividends received from the
associates. Goodwill relating to an associate is included in the carrying amount of the investment. The statement of comprehensive
income reflects the share of the results of operations of the associates attributable to the Group.
Where there have been changes recognised directly in the equity of the associate, 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 associate are eliminated to the extent of the interest in the associate.
The financial statements of the associate are prepared for the same reporting period as the parent company. Where 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 additional impairment loss on the Groups investment in its associate. The
Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If
this is the case the Group calculates the amount of impairment as the difference between the recoverable amount of the associate
and its carrying value and recognises the amount in profit or loss.
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ANNUAL REPORT 2014

Upon loss of significant influence over the associate, the Group measures and recognises any retaining investment at its fair value.
Any difference between the carrying amount of the associate upon loss of significant influence, and the fair value of the retaining
investment and proceeds from disposal is recognised in profit or loss.
Financial assets
Financial assets include trade and other receivables, cash and cash equivalents and investments. Financial assets in the scope of IAS
39 are classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or
available-for-sale financial assets, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus,
in the case of investments not at fair value through profit or loss, directly attributable transaction costs. The Group determines the
classification of its financial assets on initial recognition.
All regular purchases and sales of financial assets are recognised on the trade date i.e. the date that the Group commits to purchase
the asset. Regular purchases or sales are purchases or sales of financial assets that require delivery of assets within the period
generally established by regulation or convention in the marketplace. The subsequent measurement of financial assets depends on
their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial
recognition as at fair value through profit or loss.
Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near-term. Derivatives, including
separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments or
a financial guarantee contract. Financial assets at fair value through profit or loss are carried in the statement of financial position at
fair value with changes in fair value recognised in profit or loss.
Where a contract contains one or more embedded derivatives, the entire hybrid contract may be designated as a financial asset at
fair value through profit or loss, except where the embedded derivative does not significantly modify the cash flows or it is clear that
separation of the embedded derivative is prohibited.
Financial assets may be designated at initial recognition as at fair value through profit or loss if the following criteria are met: (i) the
designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or
recognising gains or losses on them on a different basis; or (ii) the assets are part of a group of financial assets which are managed and
their performance evaluated on a fair value basis, in accordance with a documented risk management strategy; or (iii) the financial
asset contains an embedded derivative that would need to be separately recorded.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets which carry fixed or determinable payments and fixed maturities
and which the Group has the positive intention and ability to hold to maturity. These are initially measured at fair value. After initial
measurement held-to-maturity investments are measured at amortised cost. This cost is computed as the amount initially recognised
minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between
the initially recognised amount and the maturity amount, less allowance for impairment. This calculation includes all fees and points
paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other
premiums and discounts. Gains and losses are recognised in profit or loss when the investments are derecognised or impaired, as well
as through the amortisation process.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. After initial measurement, such assets are carried at amortised cost using the effective interest method. Gains and losses are
recognised in income when the loans and receivables are derecognised or impaired, as well as through the amortisation process.
47

Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as available-for-sale or are not classified in
any of the three preceding categories. After initial recognition, available-for-sale financial assets are measured at fair value with gains or
losses being recognised as other comprehensive income in the available-for-sale reserve until the investment is derecognised or until the
investment is determined to be impaired at which time the cumulative gain or loss previously reported in equity is included in profit or loss.
The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid
prices at the close of business on the reporting date. For investments where there is no active market, fair value is determined using
valuation techniques. Such techniques include using recent arms length market transactions; reference to the current market value
of another instrument, which is substantially the same; discounted cash flow analysis and option pricing models.
Trade and other receivables
Trade and other receivables are subsequently carried at amortised cost after taking into account fair value less an allowance for any
uncollectible amounts. Allowance for credit losses is made when there is objective evidence that the Group will most probably not
recover the debts. Bad debts are impaired when identified.
Cash and cash equivalents
Cash and cash equivalents comprise cash at banks and in hand and short-term deposits with an original maturity of three months or
less and are measured at amortised cost.
Impairment of financial assets
The Group assesses at each reporting date whether there is any objective evidence that a financial asset or a group of financial assets
is impaired. A financial asset or a group of financial 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 flows of the financial asset or the group of financial assets that can be
reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant
financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other
financial reorganisation and where observable data indicates that there is a measurable decrease in the estimated future cash flows,
such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortised cost
For financial assets carried at amortised cost, the Group first assesses whether objective evidence of impairment exists individually for
financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group
determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it
includes the asset in a group of financial 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 flows (excluding future expected credit losses that have not yet
been incurred). The present value of the estimated future cash flows is discounted at the financial 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
profir 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 flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance
income in profit or loss. 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 occuring after the impairment was recognised, the previously recognised
impairment loss is increased or reduced by adjusting the allowance account. If a future write-off is later recovered, the recovery is
credited to finance costs in profit or loss.
48
ANNUAL REPORT 2014

Available-for-sale financial investments
For available for sale financial investments, the Group assesses at each reporting date whether there is objective evidence that an
investment or group of investments is impaired.
In the case of an equity investment classified as available-for-sale, objective evidence would include a significant or prolonged decline
in the fair value of the investment below its cost. Significant 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 profit or loss, is removed from other comprehensive income and recognised in profit or loss. Impairment
losses on equity investments are not reversed through profit or loss; increases in their fair value after impairment are recognised
directly in other comprehensive income.
In the case of debt instruments classified as available-for-sale, impairment is assessed based on the same criteria as financial asssets
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 profit 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 flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance
income. If, in a subsequent year, the fair value of a debt instrument increases and the increase can be objectively related to an event
occuring after the impairment loss was recognised in profit or loss, the impairment is reversed through profit or loss.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
the rights to receive cash flows from the asset have expired.
the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash
flows 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 flows from an asset or has entered into a pass-through arrangement,
and has neither transferred nor retained substantially all 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 reflects 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.
Biological assets
Biological assets are living animals that are managed by the Group. Agricultural produce is the harvested product of the biological asset.
Biological assets of the Group include cattle, pigs, birds and hatching eggs. At initial recognition, biological assets are valued at fair value.
Subsequent to initial recognition, biological assets are measured at fair value less estimated point of sale costs or cost less accumulated
depreciation. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing
parties in an arms length transaction.
Fair value is determined with reference to the average theoretical life spans for the various categories of biological assets and available market
prices. For each category, the biological assets are split in terms of their life spans at reporting date and the different saleable products
derived from each biological asset. On that basis, an indicative value is computed with reference to local and international market prices.
Fair value movements on biological assets are recognised in profit or loss.
49

Inventories
Inventories are stated at the lower of cost and estimated net realisable value. In general, cost is established on the first in, first out
basis. Cost represents the cost of materials and where appropriate, direct labour and manufacturing overheads related to stage of
manufacture. Net realisable value 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.
Financial liabilities
Financial liabilities include trade and other payables, bank overdrafts and interest-bearing borrowings, and these are initially measured
at fair value including transaction costs and subsequently amortised costs. Gains or losses are recognised in profit or loss when the
liabilities are derecognised as well as through the amortisation process.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification 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 profit or loss.
Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and when it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of
the amount of the obligation can be made. Where the Group expects some or all of the 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 profit or loss net of any certain reimbursements.
If the effect of the time value of money is material, provisions are discounted using a pre-tax discount rate that reflects, where
appropriate, the risks specific to those provisions. Where discounting is used, the increase in the provision due to passage of time is
recognised in profit or loss as a borrowing cost.
Provision for leave pay
Leave pay for employees is provided on the basis of leave days accumulated at an expected rate of payment. The timings of the cash
out-flows are by their nature uncertain.
Provision for warranty claims
In respect of provision for warranty claims, the Group warrants its refrigeration products, television products and certain component
parts. The provision is made on the basis of previous experience of the incidence of such claims.
Contingent liabilities
Contingent liabilities, which include certain financial guarantees, litigation and other letters of credit pledged as collateral security,
are possible obligations that arise from past events whose existence will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the Groups control. Contingent liabilities are not recognised in the financial
statements but are disclosed in the notes to the financial statements.
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 tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively
enacted, at the reporting date in countries where the Group operates and generates taxable income.
Current income tax relating to items recognised directly in equity or other comprehensive income is recognised in equity or in other
comprehensive income and not in profit or loss.
Deferred income tax
Deferred income tax is provided using the liability method on temporary differences at reporting date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
50
ANNUAL REPORT 2014

Deferred income tax liabilities are recognised for all taxable temporary differences, except:
where the deferred income 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 profit nor taxable profit or loss; and
in respect of taxable temporary differences associated with investments in subsidiaries and associates where the timing of the
reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse 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, to the extent that it is probable that taxable profit 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
profit nor taxable profit or loss; and
in respect of deductible temporary differences associated with investments in subsidiaries and associates, deferred income tax
assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future
and taxable profit 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 sufficient taxable profit 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 profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to 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 income tax relating to items recognised directly in equity or other comprehensive income is recognised in equity or other
comprehensive income and not in profit or loss. 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.
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 tax 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.
The net amount of Value Added Tax recoverable from, or payable to, the tax authority is included as part of receivables or payables in
the statement of financial position.
Operating Segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker is the Groups Board of Directors.
Key Management
Key management include executive directors and divisional management as outlined on pages 23 to 25 of the annual report.
Key estimates, uncertainties and judgements
The following are the key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that
have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year:
51

Useful lives and residual values of property, plant and equipment
The Group assesses useful lives and residual values of property, plant and equipment each year taking into consideration past
experience, technology changes and the local operating environment. The useful lives are set out on page 45 and no changes to
those useful lives have been considered necessary during the year. Residual values will be reassessed each year and adjustments for
depreciation will be done in future periods if there is indication of impairment in value.
Fair valuation of biological assets
Pigs
The Group estimates the slaughter weights of the pig grower herd based on a 21 week profile. Pigs aged between 0 - 5 weeks are not
fair valued and are stated at nil value at the reporting date. The Group also estimates average slaughter weights for the breeding herd.
Cattle
The average live weight of cattle is used in determining fair value.
Birds and Hatching Eggs
Breeder livestock is valued based on the actual costs incurred in rearing the birds and is amortised in relation to the expected hatching
eggs to end of lay. The valuation of broilers livestock is based on the actual costs incurred in rearing the birds. Layers are valued at fair market
price less selling costs. Fair market price is determined from the price the company sells point of lay and end of lay birds to the market.
Biological assets are valued at a price determined on the local market.
Deferred tax
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against
which the losses can be utilised. Significant management judgement is required to determine the value of deferred tax assets that
can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
Impairment of non-financial assets
An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher
of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding
sales transactions in arms length transactions of similar assets or observable market prices less incremental costs for disposing of the
asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next
five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will
enhance the assets performance of the cash generating unit being tested. The recoverable amount is sensitive to the discount rate
used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes.
Fair value of financial instruments
When the fair value of financial assets and financial liabilities recorded in the statement of financial position cannot be derived from
active markets, their fair value is determined using valuation techniques including the discounted cash flow model. The inputs to
these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in
establishing fair values. The judgements 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 financial instruments.
Consolidation of entities in which the Group holds less than majority of voting rights
Due to a change in governance structures, and in accordance with IFRS 10 (Consolidated Financial Statements), the Group has
consolidated the results of National Foods Holdings Limited (National Foods) and Irvines Zimbabwe (Private) Limited (Irvines) with
effect from 1 July 2013. Although the Group does not hold more than 50% ownership interest and voting rights in National Foods and
Irvines, the Group considers that it controls these entities through its respective shareholders agreements.
For the following investments, the Group has determined that it does not have control over these entities as defined by IFRS 10 and as
such these investments have been equity accounted: Shearwater Adventures (Private) Limited, Freddy Hirsch Group (Private) Limited,
Paperhole Investments (Private) Limited, Baobab (Private) Limited, Hat On (Private) Limited, Harlock Management Services Limited,
Afrigrain Trading Limited and Zambezi Tourism Investments Limited.
52
ANNUAL REPORT 2014

6
Earnings per share

Basic earnings basis
The calculation is based on the profit attributable to equity holders of the parent and weighted average number of ordinary shares
in issue for the year.
Fully diluted earnings basis
The calculation is based on the profit attributable to equity holders of the parent and the weighted average number of ordinary shares
in issue after adjusting to assume conversion of share options, only if the average market price of ordinary shares during the period
exceeds the exercise price of such options.
The share options arising from the Groups indigenisation transaction had no dilutive effect at the end of the financial year.
Headline earnings basis
Headline earnings comprise of basic earnings attributable to equity holders of the parent adjusted for profits, losses and items of
a capital nature that do not form part of the ordinary activities of the Group, net of their related tax effects and share of noncontrolling interests as applicable.

Reconciliation of basic earnings to headline earnings:
Adjustment for capital items (gross of tax):
Profit on disposal of unquoted investments
Fair value adjustments on obtaining control of subsidiaries
Impairment and derecognition of plant and equipment
Loss/(profit) on disposal of property, plant and equipment
Gain on bargain purchase of subsidiary
Tax effect on adjustments
Non-controlling interests share of adjustments
Headline earnings attributable to equity holders of the parent
- ( 5 248 494 )
( 39 033 279 )
1 832 590
2 232 728
86 233
( 20 621 )
( 258 542 )
( 381 047 )
( 493 026 )
( 568 952 )
( 360 861 )
( 524 637 )
22 238 436 34 442 767
Number of shares in issue

Number of ordinary shares in issue
Weighted average number of ordinary shares in issue
541 593 440 541 593 440

541 593 440 541 593 440
Basic earnings per share (cents)

Headline earnings per share (cents)
Diluted basic earnings per share (cents)
Diluted headline earnings per share (cents)
7
2014 2013
USD USD
60 465 321
38 953 790
11.16
4.11
11.16
7.19
6.36
7.19
4.11
6.36
Dividends paid
Dividends paid per share are based on the ordinary number of shares in issue on the effective date of declaration and entitlement
of the ordinary shares to the dividend. The final dividend declared in prior year of 1.00 US cent was paid during the current year. In
addition, a current year interim dividend of 0.60 US cents per share was declared and paid.

Prior year final dividends
2014 2013
USD USD
5 415 934
5 415 934
Current year interim dividends
3 249 561
4 332 748
Total dividends paid
8 665 495
9 748 682
On 29 August 2014, the Board declared a final dividend of 0.70 US cents per share to shareholders registered in the books of the
Company by noon on 26 September 2014. This brings the total dividend in respect of the 2014 financial year to 1.30 US cents per
share. There are no tax consequences arising from the dividend payment.
53

2014
2013
USD
USD
8 Revenue
Sale of goods
9
Operating profit before impairment, depreciation, amortisation and fair value
adjustments is shown after (crediting)/charging the following:

Other income
(11 408 227 ) (18 522 992 )
Operating expenses
274 131 902 189 001 671
Other income and operating expenses include the following:
9.1
Exchange gains
Realised
Unrealised

9.2
9.3
Profit on disposal of unquoted and other investments
9.4
Staff costs
9.5
Audit fees and expenses

Current year
Prior year under-provision
Fees for other services

9.6
Non-independent, non-executive directors - fees

Executive directors - total emoluments
( 405 698 )
( 2 595 621 )
( 1 917 140 )
86 233
( 20 621 )
- ( 5 264 615 )
130 125 534 96 489 038
1 405 800
1 105 126
42 140
12 792
44 206
20 015
1 492 146
1 137 933
65 524
280 967
424 155
548 806
900 765
1 185 909
8 071 178
5 518 035
9 461 622
7 533 717
Operating lease charges

Variable
9.8 Royalties
54
( 1 511 442 )
( 391 189 )
Other management remuneration
Fixed
9.9
( 2 204 432 )
Key managements emoluments

Independent, non-executive directors - fees
9.7
1 010 916 667 656 332 118
Inventories written off
8 428 654
6 156 070
10 830 940
7 728 315
667 244
728 413
3 764 555
2 980 004
ANNUAL REPORT 2014

2014 2013
USD USD
10 Tax
10.1
Income tax charge

Current income tax charge
Capital gains tax
Witholding tax
8 050 897
115 850
6 281
1 832
401 033
2 717 820
13 614 862
10 770 549
25.75
25.75
Tax on associates income
( 0.65)
( 5.09)
Fair value adjustments on conversion of associates to subsidiaries
(10.88)
0.51
( 2.52)
14.73
18.14
Deferred tax

10.2
13 091 698
Tax rate reconciliation

Statutory rate of tax, inclusive of AIDS levy
adjusted for:
Non-taxable/non-deductible items/regional rates/other fair value adjustments/withholding and

capital gains rates
Effective tax rate
55

2014
2013
Notes
USD
USD
Profit before interest, equity accounted earnings and tax
96 174 725
50 691 471
Depreciation
23 270 657 14 730 862
11
Cash flow information
11.1
Cash generated from operations
Amortisation of intangible assets
101 780
111 151
Depreciation of biological assets
122 851
76 817
Unrealised exchange gains
( 391 189 )
( 405 698 )
Fair value adjustments on equity investments
( 69 552 )
14 713
Fair value adjustments on forward exchange contracts
7 206
( 41 739 )
Inventories written off
3 764 555
2 980 004
Allowance for credit losses
1 595 158
303 417
Bad debts written off
57 571
Provisions charged to profit or loss

Fair value adjustment on biological assets
Impairment and derecognition of plant and equipment
1 832 590
2 072 426
( 384 384 )
2 232 728
86 233
( 20 621 )
Fair value adjustments on obtaining control of subsidiaries ( 39 033 279 )
Profit on disposal of unquoted and other investments
11.2
1 718 127
( 1 718 545 )
- ( 5 264 615 )
Gain on bargain purchase of subsidiaries
( 258 542 )
( 381 047 )
Decrease/(increase) in inventories
7 064 915
( 5 507 972 )
-
Increase in biological assets
( 1 110 715 )
Increase in trade and other receivables
( 4 871 086 ) ( 13 630 937 )
Increase in trade and other payables
20 951 063
7 988 676
Provisions paid
( 2 471 787 )
( 1 403 642 )
106 822 736
54 161 610
Tax paid
Opening balance
( 571 884 )
( 2 846 886 )
Charged to profit or loss ( 13 213 829 )
( 8 052 729 )
Acquisition of subsidiaries
11.4
( 889 432 )
210 291
Exchange and other non-cash movements
20 680
7 814
Closing balance
1 963 668
571 884
( 12 690 797 ) ( 10 109 626 )
56
ANNUAL REPORT 2014
11.3
2014
2013
Notes
USD
USD
Expenditure on property, plant and equipment to maintain operations
( 9 603 937 )
( 7 561 588 )
Investing activities
Expenditure on property, plant and equipment to expand operations ( 39 330 705 ) ( 43 161 251 )
Proceeds on disposal of property, plant and equipment
3 143 266
925 542
Purchase of intangible assets
( 20 832 )
( 304 110 )
Purchase of associates and other investments
( 3 728 048 )
( 281 037 )
Loans advanced to associates
( 400 338 )
( 166 837 )
Dividends received from associates
2 850 627
2 142 407
Movement in non-current biological assets
( 160 810 )
( 129 218 )
Proceeds on disposal of investments

11.4
Purchase of additional interest in subsidiaries
- 11 090 892
540 920
( 1 130 267 )
17 289
( 5 858 514 )
( 47 840 124 ) ( 43 286 425 )
11.4
Net cash flow arising on the recognition/acquisition of subsidiary companies

Due to a change in governance structures, the Group has consolidated the results of National Foods Holdings Limited and Irvines
Zimbabwe (Private) Limited with effect from 1 July 2013. These businesses were previously equity accounted. In undertaking this change
in accounting treatment and notwithstanding the fact that there has been no change in the Groups shareholding in either of these
existing investments, the application of the fair value principle contained in IFRS 3 (Business Combinations) resulted in a fair value gain
of USD 39 033 279 being credited to the Groups statement of Profit or Loss and Other Comprehensive Income in the current year, and
represents the difference between market value and carrying value of the Groups existing interest at the date of consolidation. Also as a
result of this change in accounting treatment, an intangible asset in the form of goodwill, of USD 36 904 922 has been recorded in the
Groups Statement of Financial Position. This represents the difference between the fair value of the Groups existing interest in these
investments, and the fair value of the Groups share of the net assets within these entities.
On 1 July 2013, the Group acquired 50.10% interest in Bedra Enterprises (Private) Limited and through its subsidiary, Innscor Distribution
(Private) Limited, a 66.70% interest in Yamiya Trading (Private) Limited. The acquisition of Bedra Enterprises (Private) Limited resulted
in goodwill amounting to USD 143 487 being recognised whilst the gross consideration on acquisition of Yamiya Trading (Private)
Limited was equivalent to the fair value of its net assets on acquisition date. On 1 January 2014, the Group increased its effective
shareholding in Breathaway Food Caterers (Private) Limited from 37.50% to 50.01%, with a gain on bargain purchase amounting to
USD 258 542 being recognised. The gain on bargain purchase recognised represents the excess of the fair valued net assets of the
business over the aggregate of the consideration transferred and the fair value of the existing interest and non-controlling interests
share of the net assets at the date of obtaining control.
57

11.4
Net cash flow arising on the recognition/acquisition of subsidiary companies (continued)
National
Irvines
Foods
Zimbabwe
Holdings Ltd
(Pvt) Ltd
(Pvt) Ltd
(Pvt) Ltd
USD
USD
USD
Property, plant and equipment ( 54 043 409 ) ( 14 654 032 )
( 558 485 )
( 853 709 )
Notes
USD
Intangible assets
- ( 1 599 102 )
Investments
Breathaway
Enterprises Food Caterers
( 184 045 )
- ( 7 726 198 )
( 121 724 )
Biological assets
Bedra
Inventories ( 46 923 613 ) ( 13 468 189 )

Trade and other receivables ( 25 067 838 )
Yamiya
2014
Trading
Total
(Pvt) Ltd
USD
USD
( 74 095 ) ( 70 183 730 )

- ( 1 599 102 )
( 27 575 )
( 333 344 )
- ( 7 726 198 )
( 90 055 )
( 887 958 )
( 74 651 ) ( 61 444 466 )
( 6 814 668 )
( 295 398 )
( 1 719 036 )
( 269 040 ) ( 34 165 980 )
( 4 106 296 )
3 247 587
( 34 046 )
( 7 881 )
( 3 859 )
( 904 495 )
23 956 653
3 640 099
886 792
2 324 710
294 751
31 103 005
Provisions
726 069
1 230 420
23 975
38 878
2 019 342
20 566 233
853 136
650 101

Trade and other payables
Interest-bearing borrowings
11 600 131
Deferred tax liabilities
618 287
2 374 976
( 298 485 )
257 825
recognition/acquisition ( 72 795 507 ) ( 32 842 191 )
284 399
Current tax liabilities
150 316
1 086
- 22 069 470
3 446 13 830 384
12 234
889 432
Fair value of net (assets)/liabilities

of subsidiaries at date of
( 953 594 )
( 138 789 ) ( 106 445 682 )
Less non-controlling interests

share therein
45 264 246
16 749 518
( 141 915 )
46 217
61 918 066
recognised/acquired ( 27 531 261 ) ( 16 092 673 )
142 484
( 953 594 )
( 92 572 ) ( 44 527 616 )
Fair value of net (assets)/liabilities

Fair value of equity interest
at the date of consolidation
14.1
63 378 856
17 150 000
425 052
- 80 953 908
Carrying amount
26 794 069
14 701 508
425 052
- 41 920 629
36 584 787
2 448 492
- 39 033 279
Goodwill ( 35 847 595 )
( 1 057 327 )
- ( 37 048 409 )
Fair value adjustments

on obtaining control
Gain on bargain purchase
Cash consideration
( 143 487 )
-
( 1 003 )
258 542
( 270 000 )
258 542
( 92 572 )
( 363 575 )
Add cash and cash equivalents

acquired
Net cash inflow/(outflow)
58
4 106 296
( 3 247 587 )
34 046
7 881
3 859
904 495
4 106 296
( 3 247 587 )
33 043
( 262 119 )
( 88 713 )
540 920
ANNUAL REPORT 2014

11.4
Net cash flow arising on the recognition/acquisition of subsidiary companies (continued)

In the prior year, the Group increased its shareholding in Natpak (Private) Limited from 40% to 66.67%.

2013
USD
Intangible assets
( 2 641 937 )
( 5 974 )
Inventories
( 1 000 739 )
( 1 947 100 )

Provisions
Deferred tax liability
Current tax asset
Fair value of net assets of subsidiary at date of acquisition
Less non-controlling interests share therein
Fair value of net assets acquired
( 17 289 )
1 485 099
127 020
2 767 087
160 383
( 210 291 )
( 1 283 741 )
391 206
( 892 535 )
Fair value of equity interest at the date of consolidation
511 488
Gain on bargain purchase
381 047
Cash consideration
Add cash and cash equivalents acquired
17 289
Net cash inflow
17 289
59

12

Freehold Leasehold
Plant, Motor
Total

property improvements
Fittings &
vehicles
Equipment

USD USD USD USD USD
Cost
18 315 492
25 097 707 87 577 552
Additions
At 1 July 2012
245 818
5 974 189 36 485 338
8 017 494
50 722 839
Disposals
( 129 974 )
( 59 758 ) ( 2 838 329 )
( 1 617 611 )
( 4 645 672 )
- ( 3 855 368 )
( 205 000 )
( 4 060 368 )
Impairment and derecognition
Acquisition of subsidiaries (note 11.4)
Exchange movements
At 30 June 2013
-
( 249 059 )
18 337 223 149 327 974
3 464 394
156 822
3 621 216
( 633 237 )
( 141 596 )
( 1 023 892 )
18 431 336
30 763 079 120 200 350
Additions
1 688 752
4 741 347 39 463 955
3 040 588
48 934 642
Disposals
( 2 430 360 )
( 205 821 ) ( 1 690 878 )
( 1 629 149 )
( 5 956 208 )

Exchange movements
At 30 June 2014
24 547 332 193 942 097
( 799 )
- ( 2 235 418 )
( 23 380 )
( 2 259 597 )
43 527 085
456 750 36 442 560
5 907 833
86 334 228
( 259 331 )
( 2 829 020 )
( 66 350 )
( 617 017 ) ( 1 886 322 )
61 149 664
35 138 338 190 294 247
31 583 893 318 166 142
Depreciation
At 1 July 2012
Disposals
Charge for the year
1 077 914
-
456 427
Exchange movements
At 30 June 2013
1 534 341
Disposals
( 101 468 )
Charge for the year
1 477 872

Exchange movements
At 30 June 2014
( 267 )
2 733 569
4 635 634
30 333 131
8 626 156
44 672 835
( 50 340 ) ( 2 623 034 )
( 1 067 377 )
( 3 740 751 )
1 551 013
8 815 230
3 908 192
14 730 862
- ( 1 653 388 )
( 174 252 )
( 1 827 640 )
865 030
114 249
979 279
( 301 085 )
( 77 036 )
( 487 994 )
6 026 434 35 435 884
11 329 932
54 326 591
( 79 595 ) ( 1 285 742 )
( 1 259 904 )
( 2 726 709 )
13 870 651
5 696 848
23 270 657
( 109 873 )
2 225 286
-
21 497
( 420 697 )
( 6 043 )
( 427 007 )
9 759 716
3 635 716
16 150 498
( 7 517 )
( 275 208 )
( 878 097 )
( 158 457 )
( 1 319 279 )
5 636 530
7 918 414
56 481 715
19 238 092
89 274 751
Net carrying amount

At 30 June 2014
55 513 134
27 219 924 133 812 532
12 345 801 228 891 391
At 30 June 2013
16 896 995
24 736 645 84 764 466
13 217 400 139 615 506
Certain properties, plant and equipment, and motor vehicles are encumbered as indicated in note 12.2
60
ANNUAL REPORT 2014

12.1
Reconciliation of opening and closing carrying amounts

Net carrying amount 1 July
2014
USD
2013
USD
139 615 506 104 655 139
Cost
193 942 097 149 327 974
Accumulated depreciation and impairment losses
( 54 326 591 ) ( 44 672 835 )
Movement for the year:

Additions at cost
Net carrying amount of disposals
Depreciation charge for the year
48 934 642 50 722 839

( 3 229 499 )
( 904 921 )
( 23 270 657 ) ( 14 730 862 )
( 1 832 590 )
( 2 232 728 )
70 183 730
2 641 937
Exchange movements
( 1 509 741 )
( 535 898 )
Net carrying amount 30 June
228 891 391 139 615 506
Cost
318 166 142 193 942 097
Accumulated depreciation and impairment losses
( 89 274 751 ) ( 54 326 591 )
The impairment and derecognition loss of USD 1 832 590 (2013: 2 232 728) represented the writedown of certain plant and equipment to the recoverable amount. This was recognised in the Statement
of Profit or Loss and Other Comprehensive Income as an expense. The derecognised plant and equipment
is idle and the Group is not expecting to realise any value from the use of the assets. The recoverable
amount of the impaired assets was based on fair value less cost to sale, which was determined by reference
to market prices for identical assets.
12.2 Security
Net book value of property, plant and equipment pledged as security for borrowings
7 667 333
4 850 000
Details of the borrowings are shown in note 23.
61

13
Intangible assets

Goodwill on
Other
Total

acquisition
intangible
assets

USD USD USD
Net carrying amount 1 July 2012
1 043 775
291 869
1 335 644
Gross carrying amount
1 043 775
467 683
1 511 458
Accumulated amortisation and impairment losses
( 175 814 )
( 175 814 )
2 044 110
2 044 110
5 974
5 974
( 111 151 )
( 111 151 )
Amortisation
Exchange movements
( 18 086 )
( 18 086 )
Net carrying amount 30 June 2013
1 025 689
2 230 802
3 256 491
1 025 689
2 517 767
3 543 456
( 286 965 )
( 286 965 )
Amortisation
Exchange movements
20 832
20 832
37 048 409
1 599 102
38 647 511
( 101 780 )
( 101 780 )
( 34 423 )
( 34 423 )
41 788 631
Net carrying amount 30 June 2014
38 039 675
3 748 956
38 039 675
4 137 701 42 177 376
( 388 745 )
( 388 745 )
Other intangible assets consist of computer software. These are deemed to have a finite useful life and amortisation periods range
from 4 -12 years.
The Group performed its annual impairment tests as at 30 June 2014. Goodwill acquired through business combinations has been
allocated to cash generating units, i.e. business units. The recoverable amount of the cash generating units has been determined using
fair value less costs of disposal. As at 30 June 2014, there were no indications of impairment of goodwill.
For impairment tests of computer software, the Group considers the usage and the remaining useful life. As at 30 June 2014, there
were no indications of impairment in computer software.
62
ANNUAL REPORT 2014

2014 2013

USD
USD
14
14.1
Reconciliation of movements in associates

Balance at the beginning of the year
Purchases at cost
Equity accounted earnings
Dividends received from associates
Loans advanced to associates
Fair value adjustments on obtaining control of subsidiaries
Transfer to investments in subsidiaries (note 11.4)
Balance at the end of the year
14.2
50 191 580
40 932 019
624 645
2 341 397
11 746 619
( 2 850 627 )
( 2 142 407 )
400 338
166 837
39 033 279
( 80 953 908 )
( 511 488 )
8 786 704 50 191 580

The Group holds a 37.82% interest in National Foods Holdings Limited, which is involved in the milling of flour and maize, manufacture
of stock feeds, edible oils, bakers fats and sale of other general household products. National Foods Holdings Limited is an entity listed
on the Zimbabwe Stock Exchange. Due to a change in governance structures, and in accordance with IFRS 10 (Consolidated Financial
Statements), the Group has consolidated the results of National Foods Holdings Limited with effect from 1 July 2013.
2014 2013

USD
USD
Reconciliation of the investment in associate;

26 794 069
22 699 391
5 271 775
Dividends received from associate
- ( 1 177 097 )
Fair value adjustments on obtaining control of subsidiary

The market capitalisation of the entity at 30 June is:
14.3
36 584 787
( 63 378 856 )
- 26 794 069
147 060 000 167 587 000

Irvines Zimbabwe (Private) Limited is an entity involved in the production of chicken, table eggs and day-old chicks. The Group holds
an effective 49% shareholding in Irvines Zimbabwe (Private) Limited. Due to a change in governance structures, and in accordance
with IFRS 10 (Consolidated Financial Statements), the Group has consolidated the results of Irvines Zimbabwe (Private) Limited with
effect from 1 July 2013.

2014 2013
USD
USD

14 701 508 11 958 082
3 293 426
Loans repaid
( 550 000 )
Fair value adjustments on obtaining control of subsidiary

2 448 492
( 17 150 000 )
- 14 701 508
63

14.4
Breathaway Food Caterers (Private) Limited

The Group increased its interest in Breathaway Food Caterers (Private) Limited from 37.5% to an effective 50.01% on 1 January
2014. Breathaway Food Caterers (Private) Limited is an entity involved in the manufacture of snacks and biscuits. Due to a change
in shareholding and governance structures, and in accordance with IFRS 10 (Consolidated Financial Statements), the Group has
consolidated the results of Breathaway Food Caterers (Private) Limited with effect from 1 January 2014.

2014 2013
USD
USD

Additional purchases at cost
14.5
337 318
164 790
67 500
20 234
172 528
( 425 052 )
337 318
Natpak (Private) Limited

The Group increased its interest in Natpak (Private) Limited from 40% to 66.67% in July 2012. Natpak (Private) Limited is an entity
involved in the manufacture of polywoven bags and packaging. Due to a change in shareholding and governance structures, and in
accordance with IFRS 10 (Consolidated Financial Statements), the Group has consolidated the results of Natpak (Private) Limited with
effect from 1 July 2012.

2014 2013
USD
USD

511 488
( 511 488 )
For the following investments, the Group has determined that it does not have control over these entities as defined by IFRS 10
(Consolidated Financial Statements) and as such these investments have been equity accounted:
14.6

The Group holds a 50% interest in Shearwater Adventures (Private) Limited. Shearwater Adventures (Private) Limited is involved in the
provision of leisure facilities such as helicopter flights, bungi jumping, water rafting and site-seeing.
2014 2013

USD
USD

64
1 857 096
1 305 686
101 178
551 410
( 470 000 )
1 488 274
1 857 096
ANNUAL REPORT 2014

14.7
Freddy Hirsch Group (Private) Limited

Freddy Hirsch Group (Private) Limited is an entity involved in the manufacture and selling of spices and packaging. The Group holds
an effective 39.02% shareholding in Freddy Hirsch Group (Private) Limited.

2014 2013
USD
USD

1 111 617
961 529
236 294
232 898
( 60 627 )
( 82 810 )

14.8
1 287 284
1 111 617
Paperhole Investments (Private) Limited

Paperhole Investments (Private) Limited is an entity involved in the procurement of grain. The Group holds an effective 50%
shareholding in Paperhole Investments (Private) Limited.

2014 2013
USD
USD

Loans (repaid)/advanced
14.9
1 341 772
307 424
343 026
317 511
( 1 031 216 )
716 837
653 582
1 341 772
Baobab (Private) Limited

The Group acquired a 33.33% interest in Baobab (Private) Limited on 1 July 2013. Baobab (Private) Limited is involved in the distribution
of principals products to the retail and wholesale market as well as clearing agency services.

2014 2013
USD
USD

Purchases at cost
165 738
( 20 240 )
145 498
14.10 Hat On (Private) Limited

The Group acquired a 33.33% interest in Hat On (Private) Limited on 1 July 2013. Hat On (Private) Limited is involved in the distribution
of principals products to the retail and wholesale market.

2014 2013
USD
USD

Purchases at cost
139 407
34 500
Loans advanced
1 431 554
1 605 461
65

14.11 Fast Foods - Regional Operations
The Group holds an effective 50% shareholding in Nungu Trading 49 (Pty) Limited and an effective 50% shareholding in Harlock Management
Services Limited. Harlock Management is involved in the provision of fast food services in the Groups regional operating territories, whilst
Nungu Trading 49 (Pty) Limited has been dormant since 2011.

2014 2013
USD
USD

284 709
158 877
285 865
143 844
( 155 000 )
( 145 000 )
288 586
284 709
14.12 Afrigrain Trading Limited

Afrigrain Trading Limited is an entity involved in the procurement of grain. The Group holds an effective 40% shareholding in Afrigrain
Trading Limited.

2014 2013
USD
USD

3 763 491
2 737 764
1 355 875
1 763 227
( 2 165 000 )
( 737 500 )
2 954 366
3 763 491
14.13 Zambezi Tourism Investments Limited

Zambezi Tourism Investments Limited is an entity involved in the provision of tourism services. The Group acquired an effective 50%
shareholding in Zambezi Tourism Investments Limited on 1 December 2013.

2014 2013
USD
USD

66
Purchases at cost
252 000
111 653
363 653
ANNUAL REPORT 2014

14.14 Summarised financial information of associates

Revenue
USD
Profit Non-current
after tax
assets
USD
USD
Current Non-current
Current
assets
liabilities
liabilities
USD
USD
USD

30 June 2014
30 June 2013
295 925 743 13 939 120 38 903 454
-
75 241 163
-
28 015 911
25 301 077

30 June 2014
30 June 2013
-
91 780 282
6 721 277 16 437 179
-
28 218 707
-
9 438 719
15 261 220
Breathaway Food Caterers (Private) Limited

30 June 2014
3 942 574
53 959
30 June 2013
8 504 265
460 075
838 838
2 508 819
150 717
2 297 303
30 June 2014
8 676 675
259 926
2 162 796
3 284 552
155 279
1 410 982
30 June 2013
7 481 423
1 188 243
1 906 158
3 990 189
258 820
1 076 355
30 June 2014
6 771 337
482 233
231 340
3 071 517
94 679
567 259
30 June 2013
6 606 307
475 302
510 187
2 228 299
80 139
375 932
Freddy Hirsch Group (Private) Limited

30 June 2014
101 067 977
686 051 2 804 892
24 835 298
6 769 984
19 553 264
30 June 2013
62 877 947
635 022
2 977 694
18 758 568
2 710 381
18 221 949
5 185 377
( 39 110 )
153 580
3 827 229
1 376 226
2 077 828

30 June 2014
30 June 2013
Hat On (Private) Limited

30 June 2014
30 June 2013
12 186 312
149 996
50 258
30 June 2014
30 June 2013
5 057 978
-
3 129 945
1 316 082
722 550
863 077
722 550
863 077
Nungu Trading 49 (Pty) Limited
Harlock Management Services Limited

30 June 2014
449 805
317 755
101 586
15 239
30 June 2013
364 418
287 688
90 707
12 277
Afrigrain Trading Limited

30 June 2014
141 816 838
2 650 861
1 564 500
19 478 822
30 June 2013
112 219 775
3 233 186
1 635 262
19 390 267
394 652
319 009
700 090
376 457
- 15 549 275
4 273 163
13 509 180
Zambezi Tourism Investments Limited

30 June 2014
30 June 2013
547 538
67

14.15 Group investments
This structure shows the Groups effective ordinary shareholding
and excludes dormant companies.

Lennard Manufacturing (Pvt) Ltd
t/a Innscor Bread Bulawayo
100.00%
Innscor Africa Bread Company Zimbabwe (Pvt) Ltd
t/a Innscor Bread Harare
100.00%
LSS Investments (Pvt) Ltd
100.00%
Matabeleland Inns (Pvt) Ltd
68.50%
Mutare Inns (Pvt) Ltd
50.00%
Hardwhite Trading (Pvt) Ltd
t/a Fast Foods Southern Region
51.38%
Innscor Retail Africa Ltd
80.00%
Innscor Senegal SA #
40.08%
Foods Inn Ghana Ltd #
40.08%
Innscor Congo SARL #
40.80%
Innscor Investments Kenya Ltd
100.00%
Innscor Kenya Ltd
80.00%
Innscor International Franchising Ltd
100.00%
Nungu Trading 49 (Pty) Ltd
t/a Fontana Famous Roastery *
50.00%
Innscor Foods Zambia Ltd
80.00%
Innscor Africa (Zambia) Ltd
100.00%
Harlock Management Services Ltd *
50.00%
Milling and Protein
National Foods Holdings Ltd
Irvines Zimbabwe (Pvt) Ltd
Colcom Holdings Ltd
Associated Meat Packers (Pvt) Ltd #
Freddy Hirsch Group ( Pvt) Ltd *
Greatrift Delight (Pvt) Ltd #
Intercane (Pvt) Ltd #
Innscor Retail & Distribution Ltd t/a DGA
Innscor Distribution (Pvt) Ltd
Comox Trading (Pvt) Ltd
Eagle Agencies (Pvt) Ltd #
Biscuit Company (Pvt) Ltd t/a Iris Biscuits #
Yamiya Trading (Pvt) Ltd #
Breathaway Food Caterers (Pvt) Ltd
t/a Innscor Snacks Manufacturing #
* Associates
37.82%
49.00%
79.64%
39.90%
39.02%
79.64%
44.36%
50.01%
50.01%
50.01%
37.50%
41.67%
33.36%
50.01%
# Subsidiaries of subsidiaries
The Group owns 75% of the issued Preference Share Capital
68
Brands House Marketing (Pvt) Ltd #

Innscor Distribution Africa Ltd
Innscor Distribution (Malawi) Ltd
Photo Marketing (Malawi) Ltd t/a Comox
Innscor Distribution (Zambia) Ltd
Comox Trading (Zambia) Ltd
Baobab (Pvt) Ltd *
Hat On (Pvt) Ltd *
SPAR
Spar Harare (Pvt) Ltd t/a SPAR DC #
Camelbags (Pvt) Ltd
Tevason Investments (Pvt) Ltd t/a FreshPro #
Scopeserve Investments (Pvt) Ltd
Spearhead Sales (Pvt) Ltd
Swissmart Investments (Pvt) Ltd
Katrice Investments (Pvt) Ltd #
Innscor Zambia Holdings Ltd
Spar Zambia Ltd
Household Goods
Innscor Credit Retail (Pvt) Ltd t/a TV Sales & Home
Innscor Appliance Manufacturing (Pvt) Ltd t/a Capri
Goodshow Manufacturing (Pvt) Ltd t/a WRS #
Other Businesses
Natpak (Pvt) Ltd
Shearwater Adventures (Pvt) Ltd *
Bedra Enterprises (Pvt) Ltd
Atuleo Amanzi (Zambia) (Pvt) Ltd
t/a The River Club Zambia
Corporate Services
Innscor (Pvt) Ltd
Innscor International Ltd
Tormark Services Ltd
Innscor South Africa (Pty) Ltd
Callcape Investments (Pvt) Ltd
Capri Signs (Pvt) Ltd
Yeldam Investments (Pvt) Ltd #
Botanegra (Pvt) Ltd #
Capri Corporation (Pvt) Ltd
Paperhole Investments (Pvt) Ltd *
Ajax Finance (Pvt) Ltd
Afrigrain Trading Ltd *
Zambezi Tourism Investments Ltd *
50.01%
50.00%
50.00%
50.00%
50.00%
50.00%
33.33%
33.33%
65.00%
100.00%
100.00%
100.00%
50.00%
95.00%
50.00%
100.00%
50.00%
66.67%
50.10%
33.40%
66.67%
50.00%
50.10%
66.67%
100.00%
100.00%
100.00%
100.00%
50.00%
100.00%
35.00%
35.00%
100.00%
50.00%
100.00%
40.00%
50.00%
ANNUAL REPORT 2014

14.16 Country of incorporation
All Group comanies are incorporated in Zimbabwe, except for the following operating companies:
Company
Innscor International Ltd
Tormark Services Ltd
Innscor South Africa (Pty) Ltd
Innscor Retail Africa Ltd
Innscor Senegal SA
Foods Inn Ghana Ltd
Innscor Kenya Ltd
Innscor Investments Kenya Ltd
Innscor International Franchising Ltd
Nungu Trading 49 (Pty) Ltd
Innscor Foods (Zambia) Ltd
Harlock Management Services Ltd
Innscor Africa (Zambia) Ltd
Innscor Zambia Holdings Ltd
SPAR Zambia Ltd
Innscor Distribution Africa Ltd
Innscor Distribution (Malawi) Ltd
Photo Marketing (Malawi) Ltd
Innscor Distribution (Zambia) Ltd
Comox Trading (Zambia) Ltd
Atuleo Amanzi (Zambia) (Pvt) Ltd
Afrigrain Trading Ltd
Zambezi Tourism Investments Ltd
15
Country of incorporation
Mauritius
Jersey
South Africa
Jersey
Senegal
Ghana
Kenya
Kenya
Jersey
South Africa
Zambia
Jersey
Zambia
Zambia
Zambia
Mauritius
Malawi
Malawi
Zambia
Zambia
Zambia
Mauritius
Mauritius
2014 2013
USD
USD
Investments - Financial Assets

Financial assets consist of investments in:
Quoted equity investments
Property unit trust
Other
Total long-term financial assets
446 941
687 500
3 325 698
4 460 139
384 672
687 500
433 379
1 505 551
Short-term financial assets

Total financial assets
3 252 442
7 712 581
2 891 981
4 397 532
Reconciled as follows:
Profit on disposal of investments
Fair value adjustments through profit or loss
Derecognition of take-on investment on consolidation
4 397 532
9 915 746
3 103 403
281 037
- 5 264 615
- ( 11 090 892 )
69 552
( 14 713 )
( 7 206 )
41 739
333 344
( 184 044 )
-
7 712 581
4 397 532
69

Financial assets are analysed as follows:

Fair value
Financial
Total
through assets
profit or loss
at cost
USD USD USD
Opening balance -1 July 2012
739 121
9 176 625
9 915 746
206 378
74 659
281 037
34 800
5 229 815
5 264 615
Profit on disposal of investments
( 538 300 ) ( 10 552 592 ) ( 11 090 892 )

Closing balance - 30 June 2013
( 14 713 )
( 14 713 )
41 739
41 739
469 025
3 928 507
4 397 532
3 103 403
3 103 403
305 769
333 344
27 575
69 552
69 552
( 7 206 )
( 7 206 )
Derecognition of take-on investment on consolidation

Closing balance - 30 June 2014
( 184 044 )
( 184 044 )
558 946
7 153 635
7 712 581
Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly

or indirectly.
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

Fair value through profit or loss
Level 1
Level 2
Level 3
Total
USD USD USD USD
30 June 2014
112 005
112 005
Long-term financial assets
446 941
446 941
558 946
558 946
84 353
84 353
Long-term financial assets
384 672
384 672
469 025
469 025
30 June 2013
There were no transfers between levels.
70
ANNUAL REPORT 2014

16
Non-current biological assets

Pigs Total

USD
USD
At 1 July 2012
Purchases
Depreciation
At 30 June 2013
1 236 713
129 218
( 76 817 )
( 30 276 )
1 258 838
1 236 713
129 218
( 76 817 )
( 30 276 )
1 258 838
Purchases
Feed costs
Sales
Depreciation
At 30 June 2014
213 020
296 335
( 348 545 )
( 122 851 )
77 904
1 374 701
213 020
296 335
( 348 545 )
( 122 851 )
77 904
1 374 701
At 30 June 2014, the Group had the following number of living animals within non-current
biological assets:

Number of living animals
Live weight estimates (kg)
Current biological assets

At 1 July 2012
At 30 June 2013
Purchases
Acquisition of subsidiary (note 11.4)
Feed costs
Sales
Slaughter
Harvest
At 30 June 2014
Pigs Pigs
2014
2013
3 638
570 290
Birds Hatching Eggs
USD
USD
3 448
546 442
Cattle
USD
Pigs
USD
Total
USD
1 177 168
409 416
1 212 183
414 660
-
-
-
-
35 015
5 244
-
3 500 026
7 607 751
42 799 434
( 10 792 957 )
-
( 34 999 450 )
2 141 962
-
1 931 264
118 447
-
( 1 931 624 )
-
-
-
40 259
286 714
-
-
-
-
-
42 920
10 256 766
118 087
369 893
1 586 584
1 626 843
-
5 718 004
-
7 726 198
7 320 017 50 119 451
- ( 12 724 581 )
( 7 002 709 ) ( 7 002 709 )
- ( 34 999 450 )
( 544 241 )
1 640 641
1 359 651
12 104 397
At 30 June 2014, the Group had the following number

of living animals within current biological assets:
Birds Hatching Eggs

Number of living animals
Live weight estimates (kg)
1 499 907
n/a
160 280
n/a
Cattle
Pigs
750
223 296
23 136
875 149
No biological assets have been pledged as collateral for borrowings.

Valuation Process
1. The Group engages independent consultants to determine the fair cold dressed mass (CDM) of live pigs at each age. The fair value
of the pigs is calculated by applying the market price per kg to the CDM.
2. Cattle value is determined by the fair market prices of cattle at the nearest active market.
3. The valuation of bird breeder livestock is based on the actual costs incurred in rearing the birds and is amortised in relation to
the expected hatching eggs to end of lay. The valuation of broiler livestock is based on the actual costs incurred in rearing the birds.
Layers are valued at fair market price less selling costs. Fair market price is determined from the price the Group sells point of lay and
end of lay birds to the market.
71

Valuation Technique
Type
Valuation Technique
Significant
Unobservable Inputs
Birds - Breeders grandparents,

parents
The cost approach is applied in valuing breeders based on the

actual costs incurred in rearing the birds and is amortised in
relation to the expected hatching eggs to end of lay.
Mortality
Age of birds
Layers
The fair market price of point of lay and end of lay birds to
third parties is used in determining the fair value of layers.
Mortality
Age of birds
Broilers
The valuation of broilers is based on the cost approach.
Mortality
Cattle - Comprising of bulls, cows,

weaner heifers, weaner steers, bulling
heifers, steers and calves
Market comparison technique. The valuation model is based on

the market price of cattle of similar age, weight and genetic make
up. The prices of cattle at the nearest market are used for valuation.
Pigs - Comprising of piglets,

weaners, growers, gilts, sows and
boars
Market comparison technique. The valuation model is based

on the price per kg of pork multipled by the Cold Dressed
Mass (CDM).
Price per kg,

CDM discounting factor
Age of pigs
Weight of pigs
Fair Value Hierarchy

(Hierarchy levels as per note 15)
Level 1
Level 2
Level 3
Total
Fair value

gain/(loss)
Pigs
Cattle
Birds
Total
-
369 892
2 434 013
2 434 013
( 466 358 )
369 892
42 920
5 441 425
5 441 425
2 141 963
369 892
7 875 438
8 245 330
1 718 545
The table below presents the sensitivity of profit or loss before tax due to changes in the live weight. The sensitivities presented are
favourable movements. If the sensitivity variables were unfavourable, the negative impact on profit would be of a similar magnitude.

Effect on profit before tax

% Change
USD
Pigs
Fair value less costs to sell-meat
3%
88 333
Cattle
Fair value less costs to sell-meat
5%
18 495
Biological assets risk management policies

Biological assets are living animals that are managed by the Group. Agricultural produce is the harvested product of the biological
asset. Biological assets of the Group include cattle, pigs, birds and hatching eggs.
These biological assets are exposed to various risks, which include disease/infection outbreaks, theft of livestock and price fluctuations.
The Group has put in place measures and controls to safeguard losses due to the above risks. These measures and controls, include
among other things, vaccination to prevent infections and regular evaluation of prices.
The fair value of biological assets has been determined on the fair value less costs to sell basis in accordance with IAS 41. In arriving at their
estimates of fair value, the Directors have used their market knowledge, professional judgement and historical transactional comparables.
16.1
72
Commitments for the development or acquisition of biological assets

The Group has not committed itself to acquiring any biological assets at 30 June 2014.
ANNUAL REPORT 2014

2014 2013
USD
USD
13 980 240
49 526 579
39 085 573
2 235 912
403 478
105 231 782
6 448 988
36 886 307
9 309 059
1 530 728
495 298
54 670 380
17 Inventories
Consumable stores
Finished products, net of allowance for obsolescence
Raw materials and packaging
Goods in transit
Work in progress

The amount of write-down of inventories recognised as an expense is USD 3 764 555
(2013: USD 2 980 004). USD 9 698 961 (2013: USD 2 430 387) of inventories is pledged as security for
18
borrowings in National Foods, SPAR Zambia and Distribution Group Africa Regional businesses.

2014 2013
USD
USD
57 648 056
13 162 384
8 836 468
1 048 023
3 493 008
17 822 617
102 010 556
( 7 160 414 )
94 850 142
35 041 737
12 846 819
5 537 382
561 727
2 675 582
8 877 529
65 540 776
( 3 092 391 )
62 448 385
3 092 391
2 472 865
1 595 158
7 160 414
2 788 974
303 417
3 092 391

Trade receivables
Instalment sales receivables
Prepayments
Rental deposits
VAT receivable
Other receivables


Reconciliation of allowance for credit losses is as follows:
Opening balance
Acquisition of subsidiaries (netted in trade and other receivables-note 11.4)
Charge for the year
Closing balance
There were no collectively impaired trade receivables in the current year. Credit terms vary per
business unit, but do not exceed 60 days. Interest is charged on overdue accounts at varying rates
depending on the business.
As at 30 June 2014, the ageing analysis of trade receivables was as follows:

Past due before impairment
Neither

past due
More than

Total nor impaired
60-90 days
90 days
USD USD USD USD
30 June 2014
30 June 2013
57 648 056
35 041 737
46 292 981
28 297 168
2 274 825
2 884 031
9 080 250
3 860 538
Note 31 on credit risk of trade receivables explains how the Group manages and measures credit quality of trade receivables that are
neither past due nor impaired.
73
19
2014 2013
USD
USD
8 000 000
8 000 000
Ordinary share capital
19.1 Authorised
800 000 000 ordinary shares of 1 cent each
1 000 Non-Voting Class A ordinary shares of 1 cent each

19.2
10
8 000 010
8 000 000
5 415 934
5 415 934
10
Issued and fully paid

541 593 440 ordinary shares of 1 cent each
1 000 Non-Voting Class A ordinary shares of 1 cent each
During the financial year ended 30 June 2014, the authorised share capital of Innscor Africa Limited was increased from USD 8 000 000
divided into 800 000 000 ordinary shares of USD 0.01 (one cent) each to USD 8 000 010 divided into 800 000 000 ordinary shares of USD
0.01 (one cent) each and 1 000 Non-Voting Class A ordinary shares of USD 0.01 (one cent) each, all of which are issued to Innscor
Africa Limited Employee Share Trust (Pvt) Ltd.
19.3
Share Options
In line with the Groups indigenisation transaction, approved by shareholders on 24 January 2014, Innscor Africa Limited entered into
the following two Share Option agreements:
1) The first option agreement is with an indigenous company, Benvenue Investments (Private) Limited. The terms of the Benvenue
Share Option are as follows:
Number of shares:
Fifty Million (50 000 000)
Tenure:
10 years
Pricing:
The higher of - 75% of the volume weighted average price of Innscor Africa
Limited shares over the previous 60 trading days, or
for the first five years, USD 1.37 per share and,
for the second five years, USD 2.01 per share.
2) The second option is with the newly created Innscor Africa Limited Employee Share Trust. The terms of the Innscor Africa Limited
Employee Share Trust Option are as follows:
Number of shares:
Thirty Million (30 000 000)
Tenure:
10 years
Pricing:
At the volume weighted average price of Innscor Africa
Limited shares over the previous 60 trading days.
The share options arising from the Groups indigenisation transaction have no dilutive effect at the end of the financial year.
74
ANNUAL REPORT 2014

19.4
Directors shareholdings
At 30 June 2014, the Directors held directly and indirectly the following number of shares:

2014 2013
M J Fowler
110 465 090 103 995 735
Z Koudounaris
109 973 843
102 841 988
720 000
720 000
J P Schonken
1 528 820
1 528 820
B S Dionisio
22 484 058
22 484 058
75 254
75 254
J Koumides
D L L Morgan

245 247 065 231 645 855
There has been no material change in the Directors interests subsequent to 30 June 2014
to the date of this report.

20
2014 2013
USD
USD
Non-distributable reserves
Opening balance
Changes in non-distributable reserves
Exchange differences arising on translation of foreign subsidiaries
Transfer of foreign currency conversion reserve to distributable reserves
Closing balance
28 618 065 29 035 168

( 33 912 193 )
( 417 103 )
( 590 248 )
( 417 103 )
( 33 321 945 )
( 5 294 128 ) 28 618 065
Comprising:
Restructure reserve
( 4 064 912 )
( 4 064 912 )
Foreign currency translation reserve
( 1 229 216 )
( 638 968 )
Foreign currency conversion reserve

- 33 321 945
( 5 294 128 )
28 618 065
Nature and purpose of reserves

Restructure reserve
The restructure reserve is used to record changes in the ownership interest of a subsidiary, which do not result in a change of control.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of financial statements
of foreign subsidiaries.
Foreign currency conversion reserve
The foreign currency conversion reserve arose as a result of the change in functional currency from the Zimbabwean dollar to the
United States dollar. It represented the residual equity in existence as at the change-over period and was recognised as a non-distributable
reserve. During the year ended 30 June 2014, this reserve was recycled to distributable reserves.
75

21
Distributable reserves

2014 2013
USD
Opening balance
123 393 018
USD
97 965 286
Retained for the year
60 465 321 38 953 790
Dividends paid (note 7)
( 8 665 495 )
( 9 748 682 )
( 55 988 )
( 3 777 376 )
33 321 945
Transactions with owners in their capacity as owners*

Transfer of foreign currency conversion reserve from non-distributable reserves
Closing balance
208 458 801 123 393 018
Retained in:
Holding company
106 353 532
22 357 733
Subsidiary companies
96 474 770
73 192 545
Associate companies
5 630 499
27 842 740
208 458 801 123 393 018
*This relates to the difference between the purchase price and carrying amount of non-controlling
interests on acquisitions of non-controlling interests share in subsidiaries of the Group.

22
2014 2013
USD
USD
Net deferred tax liabilities
22.1 Reconciliation
Opening balance
Charged to profit or loss
Exchange movements
Closing balance
22.2
8 716 183
5 791 716
401 033
2 717 820
13 830 384
160 383
( 111 937 )
46 264
22 835 663
8 716 183
Analysis of net deferred tax liabilities

Accelerated depreciation for tax purposes
Fair value adjustments on biological assets
Tax losses
Unrealised exchange gains
Prepayments
Provision for warranties

32 739 778 14 799 399

93 103
92 935
( 10 389 695 )
( 6 775 350 )
100 731
104 467
2 275 390
1 425 875
( 1 843 807 )
( 796 291 )
( 139 837 )
( 134 852 )
22 835 663
8 716 183
The net deferred tax liabilities are made up as follows:

Deferred tax assets
( 10 389 695 )
( 7 926 277 )
Deferred tax liabilities
33 225 358 16 642 460
22 835 663
8 716 183
The Group recognises deferred tax assets arising from tax losses where there is a reasonable expectation that sufficient taxable profit
will be available in future to utilise these losses.
76
ANNUAL REPORT 2014

2014 2013
USD USD
23

Rate of
Year
interest Repayable
Long-term financing
Secured
Regional Operations
Zimbabwe Operations
16-24%
2015-2019
1 726 785
1 963 779
417 199
7-9%
2016 - 2018
15 536 629
584 414
17 263 414
2 965 392
14% up to 365 days
57 084
44 933
52 985
Unsecured
Zimbabwe Operations
Total long-term financing
Short-term financing
Secured
Regional Operations
Zimbabwe Operations
Unsecured
Regional Operations
1 169 868
3-12% up to 365 days
21 245 714
31 578 476
Short-term portion of long-term financing
7 181 581
3 174 487
On demand
18 322 286
15 420 174
Total short-term financing
46 806 665
51 440 923
Total interest-bearing borrowings
64 070 079
54 406 315
Zimbabwe Operations

Overdraft
7.5-10%
As at 30 June 2014, the Board of Directors had authorised aggregate borrowing limits of USD169 million.
Short-term borrowings form part of the Groups core borrowings and are renewed in terms of ongoing
facilities negotiated with the relevant financial institutions.

2014 2013
USD USD
24

Trade payables
81 089 985
45 564 897
Accruals
32 112 846
23 867 179
Deferred income
2 931 468
2 408 156
Other payables
9 705 391
7 250 450
125 839 690
79 090 682

Trade payables are non-interest bearing and are normally settled within 30 days.
Other payables are non-interest bearing and have varying settlement terms.

77

2014 2013
USD USD
25 Provisions
Leave pay provision
5 756 182
4 534 503
543 056
523 696
6 299 238
5 058 199
Provision for Provision for

leave pay
warranties
Total
Provision for warranty

Reconciliation of provisions
At 1 July 2012
3 801 656
469 982
4 271 638
Charge for the year
1 834 002
238 424
2 072 426
( 9 243 )
Exchange differences
Less paid
( 9 243 )
127 020
( 1 218 932 )
-
( 184 710 )
127 020
( 1 403 642 )
At 30 June 2013
4 534 503
523 696
5 058 199
Charge for the year
1 597 122
121 005
1 718 127
Exchange differences
Less paid
At 30 June 2014
26
USD USD USD
( 24 643 )
2 019 342
-
-
( 24 643 )
2 019 342
( 2 370 142 )
( 101 645 )
( 2 471 787 )
5 756 182
543 056
6 299 238
2014 2013
USD USD
Capital expenditure commitments

Authorised and contracted
11 099 665
15 918 435
Authorised but not yet contracted
32 592 658
17 836 777
43 692 323
33 755 212
The capital expenditure will be financed from the Groups own resources and existing borrowing facilities.
27
Future lease commitments - Group as lessee

The Group has entered into commercial leases on certain properties and motor vehicles. These leases
have varying terms with renewable options included in some of the contracts. There are no restrictions
placed upon the Group by entering into these leases. Future minimum rentals or lease charges payable
under non-cancellable operating leases at 30 June are as follows:

78
2014 2013
USD USD
Payable within one year
13 851 839
13 706 654
Payable between two and five years
37 788 792
40 821 536
Payable after five years
28 376 388
29 736 483
80 017 019
84 264 673
ANNUAL REPORT 2014

28
Segmental analysis
Management has determined the Groups operating segments based on the information reviewed by the Board for the purposes
of allocating resources and assessing performance. The revenue, operating profit, assets and liabilities reported to the Board are
measured consistently with that in the reported consolidated financial statements.
Business Segments
The reporting structure is summarised as follows:
This operating segment comprises the Groups Bakery operations which are based in Zimbabwe as well as all the Fast Food operations
across the African Continent.
Milling and Protein
This operating segment consists of National Foods Holdings Limited, Colcom Holdings Limited and Irvines Zimbabwe (Private) Limited.
National Foods Holdings Limited is involved in the milling of flour and maize, the manufacture of stockfeeds, edible oils, bakers fats
and sale of other general household products. The business of Colcom Holdings Limited involves the production, processing and
marketing of pork and related food products. Irvines Zimbabwe (Private) Limited is involved in the production of chicken, table eggs
and day-old chicks.
This segment consists of the Distribution Group Africa operations which operate in Zimbabwe, Zambia and Malawi. Business units in
this segment represent principals who own brands of fast moving consumer goods and these units distribute the principals products
to the retail and wholesale market across these countries.
SPAR
This reporting segment consists of the SPAR Corporate Store retail operations in Zimbabwe and Zambia, as well as the SPAR Distribution
Centre in Harare. The SPAR Corporate Store retail operations consist of a number of corporate supermarkets operating under the SPAR
brand in both Zimbabwe and Zambia; whilst the SPAR Distribution Centre facilitates the purchase, warehousing and distribution of
goods to both corporate and independent SPAR supermarkets in Zimbabwe.
Household Goods
This operating segment consists of TV Sales & Home and Capri. Business operations in this segment manufacture and/or retail
household goods and appliances.
Other Businesses
This segment consists of business operations from an associate company and other smaller business units. It comprises of Shearwater,
Natpak, Bedra Enterprises and The River Club.
Corporate Services
This segment contains businesses which provide support functions such as treasury, internal audit and company secretarial services
to the Groups operations.
Geographical Segments
The Group is also organised into parcels of businesses incorporated in Zimbabwe, and those incorporated in countries outside
Zimbabwe (note 14.16).
79

28.1
Business segments - continued

Bakeries
and
Fast Foods
USD
Milling &
Protein
USD
USD
30 June 2014
261 993 131
488 569 195
92 730 082
30 June 2013
269 056 704
60 782 481
93 629 104
30 June 2014
25 240 253
41 509 166
8 018 362
30 June 2013
33 269 171
4 807 631
8 946 633
30 June 2014
11 608 224
6 786 051
951 932
30 June 2013
8 519 220
1 603 612
864 729
30 June 2014
158 877
236 294
34 493
30 June 2013
143 842
232 898
30 June 2014
11 668 716
35 739 199
6 726 506
30 June 2013
23 492 228
2 249 054
7 832 898
30 June 2014
129 175 493
233 679 086
41 356 791
30 June 2013
102 190 684
37 258 306
35 988 919
30 June 2014
74 878 300
85 456 887
20 420 969
30 June 2013
52 005 029
10 525 927
19 042 302
30 June 2014
25 792 498
14 762 249
808 878
30 June 2013
40 640 120
2 825 596
1 536 859
Distribution
Group Africa
Revenue
Operating profit/(loss) before impairment, depreciation,

amortisation and fair value adjustments
Depreciation and amortisation
Profit/(loss) before tax
Segment assets
Segment liabilities
Capital expenditure
80
ANNUAL REPORT 2014
SPAR

Household
Goods
Other
Businesses
Corporate
Services
Intersegment
Adjustments
Total
USD
USD
USD
USD
USD
USD
159 696 009
53 158 563
20 212 708
1 885 103
( 67 328 124 )
1 010 916 667
167 003 848
51 888 736
12 215 963
1 755 282
656 332 118
( 4 907 091 )
9 853 822
1 699 783
( 855 919 )
80 558 376
2 596 500
11 480 326
1 688 590
4 607 690
67 396 541
2 491 092
515 861
694 215
325 062
23 372 437
2 506 486
483 025
542 211
322 730
14 842 013
101 178
1 810 555
2 341 397
9 289 139
2 080 740
11 746 619
( 9 561 505 )
8 744 665
569 332
38 528 641
92 415 554
( 547 486 )
10 282 523
9 922 807
6 137 416
59 369 440
44 765 746
44 061 900
12 442 744
110 721 739
( 67 955 135 )
548 248 364
46 377 736
39 768 087
49 755 402
71 287 003
( 34 050 501 )
348 575 636
35 705 680
19 016 674
6 623 032
57 251 626
( 67 955 135 )
231 398 033
28 981 743
19 072 691
3 380 503
56 811 846
( 34 050 501 )
155 769 540
3 249 959
2 931 350
1 215 129
174 579
48 934 642
1 788 328
3 373 812
491 998
66 126
50 722 839
81

28.2
Geographical segments
Revenue
Profit
Total
Total

before tax
assets
liabilities

USD USD USD USD
Zimbabwe
30 June 2014
886 860 724 84 056 934 493 134 128 207 380 549
30 June 2013
533 379 483
51 617 248 297 692 550 131 027 829
Regional
30 June 2014
30 June 2013
29
124 055 943

122 952 635
8 358 620
7 752 192
55 114 236
50 883 086
24 017 484
24 741 711
Pension funds
Innscor Africa Limited Pension Fund
This is a self-administered, defined contribution fund. The Fund has been operational since 2000. Membership is compulsory
for employees of the Group who are not members of other occupational penison funds. Contributions are at the rate of 14% of
pensionable emoluments less NSSA of which members pay 7% .
SPAR Harare Pension Fund
This is a defined contribution fund, administered by an insurance company which covers eligible employees of SPAR Harare (Pvt) Ltd.
Contributions are at the rate of 21% of pensionable emoluments of which members pay 6%.
Catering Industry Pension Fund
This is a defined contribution fund which covers employees in specified occupations of the catering industry. The majority of
employees in the Groups fast food and certain employees in Innscor Bread are members of this fund. Contributions are at the rate
of 10% of pensionable emoluments of which members pay 5%.
National Foods Pension Fund
This is a defined contribution fund, administered by an insurance company which covers eligible employees of National Foods Limited
and Natpak (Private) Limited. Contributions are at the rate of 17.5% of pensionable emoluments of which members pay 7%.
Colcom Pension Fund
This is a self-administered, defined contribution fund where all permanent employees are eligible to become members. Contributions are
at the rate of 22.5% of pensionable emoluments less NSSA contributions of which members contribute 7.5% for all those who joined
the fund prior to 1 June 2012. Contributions for new entrants after 1 June 2012 are at the rate of 15% with members contributing 7.5%.
National Social Security Authority Scheme (NSSA)
The scheme was established, and is administered, in terms of statutory Instrument 393 of 1993. Introduced in 1994, the Pension
and Other Benefits Scheme is a defined contribution plan based on a 50/50 contribution from the employers and employees and
are limited to specific contributions legislated from time to time. These are presently 7% of pensionable emoluments of which the
maximum monthly pensionable salary is USD700. A total monthly contribution of USD 49 is therefore the maximum per employee.
Other Schemes
The Group also contributes to the relevant social security authorities in the various regional countries in which the Group operates,
as required by local legislation.
Pension costs recognised as an expense for the year:

82
Innscor Africa Limited Pension Fund

SPAR Harare Pension Fund
National Social Security Authority Scheme & Workers Compensation Insurance Fund
Catering Industry Pension Fund
National Foods Pension Fund
Colcom Pension Fund
Other Schemes

2014
2013
USD USD
1 281 685
204 105
1 299 876
193 270
703 120
470 548
-
4 152 604
1 530 197
249 841
1 040 060
185 995
521 082
77 665
3 604 840
ANNUAL REPORT 2014

30
Related party transactions
30.1
Trading transactions
Related party activities consist of transactions between Innscor Africa Limiteds consolidated entities and its associates.
Related party transactions are summarised as follows:
Name of related party
sales
purchases
rent
interest trade & other trade & other
received (received)/ receivables payables

paid

USD USD USD USD USD USD
30 June 2014
-
-
-
-
-
30 June 2013
43 263 602
4 905 489
153 660
97 961
2 545 584
217 951
30 June 2014
30 June 2013
-
13 566 588
-
278 386
-
-
-
-
-
906 937
5 779
Shearwater Adventures (Private) Ltd

30 June 2014
30 June 2013
-
-
-
-
-
-
87 877
-
-
-
774 836
-
-
-
75 293
-
Breathaway Food Caterers (Private) Ltd

30 June 2014
30 June 2013
3 942 574
8 504 265
716 198
-
478 757
-
3 500
-
-
-
30 272
-
54 079
-
Hat On (Private) Limited

30 June 2014
30 June 2013
596 639
-
613 545
-
1 000
-
( 63 438)
-
217 373
-
137 487 615

-
-
-
-
-
-
-
8 715 913
-
69 112 337 31 908 834

-
-
-
-
255 241 19 623 247

-
-
3 598 519
-

30 June 2014
30 June 2013
Compensation of key personnel to the Group

Short -term employee benefits (note 9.6)
30.3

30 June 2014
30 June 2013
Afrigrain Trading Ltd

30 June 2014
30 June 2013
30.2
-
1 556 073
2014 2013
USD USD
9 461 622
7 533 717
Transactions with Directors

The Group has leased properties from various companies in which some of the Directors have either a financial or custodial interest.
The leases are undertaken at an arms length basis. The Group also receives loans from Directors from time to time.

2014 2013
USD USD
Lease payments
2 034 813
1 850 521
Loans from Directors
9 164 535
6 380 396
83

31
Financial risk management objectives and policies

The Groups principal financial instruments comprise interest-bearing borrowings, overdrafts, financial assets, cash and short-term
deposits. The main purpose of these financial instruments is to raise finance for the Groups operations or to achieve a return on
surplus short-term funds. The Group has various other financial assets and financial liabilities such as trade receivables and trade
payables, which arise directly from its operations.
The main risks arising from the Groups financial instruments are interest rate risk, foreign currency risk, credit risk, liquidity risk and
equity price risk. The board reviews and agrees policies for managing each of these risks and they are summarised below:
Interest rate risk
The Groups exposure to the risk for changes in market interest rates relates primarily to variable short-term overdraft rates. The
Groups policy is to manage its interest cost by limiting exposure to overdrafts and where borrowings are required, to borrow at
favourable and fixed rates of interest.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on short-term overdrafts.
There is an immaterial impact on the Groups equity.

2014 2013
Effect on profit before tax
USD USD
Increase of 3%
( 506 137 )
Decrease of 3%
( 413 383 )
506 137
413 383
Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. As a result of significant investment operations in countries outside Zimbabwe, the Groups statement of
financial position can be affected significantly by movements in foreign currency exchange rates. The Group also has transactional
currency exposures. Such exposure arises from the sale or purchase by an operating unit in currencies other than the units functional
currency. The Group limits exposure to exchange rate fluctuations by either pre-paying for purchases or retaining stock until the
foreign currency to settle the related liability has been secured.
The carrying amounts of the Groups foreign currency denominated monetary assets and liabilities at the reporting date are as follows:

30 June 2014
Currency
Liabilities
Assets
Net position
South African Rand

Great Britain Pound

Botswana Pula
( 119 370 113 )

-
( 631 046 )
21 086 368
117 617
-
( 98 283 745 )
117 617
( 631 046 )
( 37 416 )
34 941
( 2 475 )
Euro
30 June 2013
Currency
Liabilities
Assets
Net position
South African Rand

Kenyan Shilling

Ghanaian Cedi

Senegalese Franc
Malawian Kwacha
( 253 454 )
( 399 571 235 )
( 2 107 741 )
( 415 795 751 )
( 1 410 630 569 )
5 901 163
662 461 833
4 272 914
291 172 631
1 579 997 476
5 647 709
262 890 598
2 165 173
( 124 623 120 )
169 366 907
( 81 250 997 )
96 653 918
15 402 921
84
Zambian Kwacha
ANNUAL REPORT 2014

31
Financial risk management objectives and policies (continued)

The following table demonstrates the sensitivity of the Groups results to a reasonably possible change in the US Dollar (USD)
exchange rate against the following currencies, with all other variables held constant.

30 June 2014
Change in rate
Effect on profit
before tax
Effect on equity
USD
USD
South African Rand

Great Britain Pound

Botswana Pula

Euro

+10%
-10%
+10%
-10%
+10%
-10%
+10%
-10%
578 557
( 737 218 )
( 9 710 )
12 917
3 076
( 4 167 )
154
( 206 )
1 423 192
( 1 769 550 )
( 27 938 )
35 196
9 674
( 12 232 )
461
( 582 )

30 June 2013
Change in rate
Effect on profit
before tax
Effect on equity
USD
USD
South African Rand

Kenyan Shilling

Ghanaian Cedi

Senegalese Franc

Malawian Kwacha

Zambian Kwacha

+10%
-10%
+10%
-10%
+10%
-10%
+10%
-10%
+10%
-10%
+10%
-10%
( 133 )
133
( 114 944 )
114 944
( 30 485 )
30 485
( 3 550 )
3 550
( 7 357 )
7 357
( 145 661 )
145 661
( 52 003 )
52 003
( 278 545 )
278 545
( 96 042 )
96 042
22 470
( 22 470 )
( 44 484 )
44 484
( 255 892 )
255 892
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or a customer contract, leading
to a financial loss.
The Group trades only with recognised, creditworthy third parties. It is the Groups policy that all customers who wish to trade on credit
terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result
that the Groups exposure to debt impairment is not significant. For transactions that are not denominated in the functional currency of
the relevant operating unit, credit terms are specified contractually within the regulations laid down by the Reserve Bank of Zimbabwe.
There is no concentration risk as the Group trades with a wide range of customers with different risk profiles. Credit limits are set by
the Group to avoid exposure to a single customer.
Where it sees fit, the Group can from time to time ask for collateral security from debtors. This is done after assessing the customers
ability to honour their obligations and the level of exposure. Collateral can be properties, listed shares or other assets.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents and held
for trading financial assets, the Groups Finance and Investment Committee approves all counterparties, sets and monitors exposure
limits and terms of engagement.
The maximum exposure arising from default equals the carrying amount less the market value of any security held.
85

31
Financial risk management objectives and policies (continued)

Liquidity risk
The Groups objective is to maintain a balance between continuity of funding through a well managed portfolio of short-term
investments and/or flexibility through the use of bank overdrafts and interest-bearing borrowings.
The table below summarises the maturity profile of the Groups financial assets and liabilities:
30 June 2014

Within
Between
3 months 4-12 months
More than
12 months
Total
USD USD USD USD
Liabilities
( 19 273 584 ) ( 30 593 720 ) ( 18 946 663 ) ( 68 813 967 )
( 121 886 743 )
Total
( 141 160 327 ) ( 34 546 667 ) ( 18 946 663 ) ( 194 653 657 )
( 3 952 947 )
- ( 125 839 690 )
Assets
37 118 340
- 37 118 340
Trade and other receivables excluding prepayments
78 272 592
7 741 082
- 86 013 674
Investments in associates and financial assets

Total
30 June 2013

558 946
2 693 496 13 246 843 16 499 285
115 949 878
10 434 578 13 246 843 139 631 299
Within
Between
3 months 4-12 months
More than
12 months
Total
USD USD USD USD
Liabilities
( 40 216 454 ) ( 12 518 969 )
( 3 893 553 ) ( 56 628 976 )
( 73 493 689 )
( 5 596 993 )
- ( 79 090 682 )
Total
( 113 710 143 )
( 18 115 962 )
( 3 893 553 ) ( 135 719 658 )
Assets
23 183 804
52 099 584
4 811 419
469 025
2 422 956
51 697 131
75 752 413
7 234 375
51 697 131 134 683 919
Investments in associates and financial assets

Total
- 23 183 804
- 56 911 003
54 589 112
Equity price risk

The Group is exposed to movement in fair value of quoted equities. Investments in quoted equities are valued at fair value and are
therefore susceptible to market fluctuations. Comprehensive measures and limits are in place to control the exposure of the Groups
equity investments to fair value risk. The carrying value of such quoted equities at reporting date was not material.
The Groups Finance and Investment Committee is tasked with the responsibility of performing research into potential opportunities
in order to provide suggestions for investment to the Board of Directors. This Committee monitors the performance of the current
investment portfolio and reports to the Board of Directors.
86
ANNUAL REPORT 2014

32
Fair value of financial instruments

The estimated net fair values of all financial instruments, including instalment debtors, approximate the carrying amounts shown in
the financial statements. Set out below is a comparison of carrying amounts and fair values of all the Groups financial instruments
at 30 June 2014.

Carrying
Fair value
amount

2014 2014

USD USD
Financial assets
37 118 340
37 118 340
86 013 674
86 013 674
7 712 581
7 712 581
Held for trading investments

130 844 595 130 844 595
64 070 079
64 070 079
125 839 690 125 839 690
189 909 769 189 909 769

Carrying
Fair value
amount

2013 2013

USD USD
Financial assets
23 183 804
23 183 804
56 911 003
56 911 003
4 397 532
4 397 532
84 492 339
84 492 339
54 406 315
54 406 315
79 090 682
79 090 682
Held for trading investments


133 496 997 133 496 997

Market values have been used to determine the fair values of quoted investments.
87

33
Capital management
The primary objective of the Groups capital management is to ensure that all its companies maintain healthy capital ratios in order
to support the business and maximise shareholder value.
The Group manages its capital (total equity) and makes adjustment to it in light of changes in the economic environment. To maintain or
adjust the capital structure the Group may adjust the dividend payment to shareholders, return on capital to shareholders, or issue new
shares. No changes were made to the objectives, policies or processes during the years ended 30 June 2014 and 30 June 2013. The Group
manages capital using a gearing ratio, which is calculated as total liabilities divided by the sum of total liabilities and equity.

2014 2013
USD USD
Total Liabilities
231 398 033 155 769 540
Total Equity
316 850 331 192 806 096
Gearing ratio
34
0.42
0.45
Translation rates
The table below provides the closing translation rates used for the purpose of consolidating foreign investments financial statements
to the Groups reporting currency:

FX : USD 1
FX : USD 1
South African Rand
10.61
9.87
Kenyan Shilling
87.50
85.80
3.29
2.05
Senegalese Franc
482.20
504.20
Malawian Kwacha
411.50
346.12
6.26
5.47
Ghanaian Cedi
Zambian Kwacha
35
2014 2013
Contingent liabilities

2014 2013
USD USD
Guarantees
13 400 000
10 200 000
The contingent liabilities relate to bank guarantees provided in respect of associate companies as at 30 June 2014.
The Competition and Tariff Commission of Zimbabwe (CTC) is seeking to penalise the Group for not formally notifying it when the
Group became the largest single shareholder in National Foods Holdings Limited, an event which took place in 2003. The amount
being sought as a penalty by the CTC is USD 3 135 387. The Directors are of the opinion that the penalty being sought is unjustified
and inappropriate, and the matter is currently before the courts.
36
Events after reporting date

There have been no significant events after the reporting date.
88
ANNUAL REPORT 2014
Company Statement of
Financial Position
as at 30 June 2014

COMPANY COMPANY

Notes 2014 2013
USD USD
ASSETS
Non-current assets
property, plant and equipment 17 647 226
intangible assets
6 253
investments
A 142 521 230
deferred tax asset
1 078 080
161 252 789
Current assets
inventories
1 590 485
trade and other receivables
4 396 087
1 819 527
cash and cash equivalents

7 806 099
1 162 269
20 256
120 211 119
2 145 435
123 539 079
954 894
2 676 528
2 680 169
6 311 591
Total assets 169 058 888 129 850 670

EQUITY AND LIABILITIES
Capital and reserves
ordinary share capital
19
5 415 934
5 415 934
class A ordinary share capital
19
10
non distributable reserves
- 45 835 667
distributable reserves
21 106 353 532 22 357 733
Total equity
111 769 476
73 609 334
Current liabilities
trade and other payables
provisions

39 497 713
16 789 464
1 002 235
57 289 412
42 789 937
13 128 946
322 453
56 241 336
Total liabilities
57 289 412
56 241 336
Total equity and liabilities 169 058 888 129 850 670
D L L MORGAN
Chairman
J P SCHONKEN
Executive Director
Harare
10 October 2014
A. Investments
1 038 896
Quoted investments
343 801
Property unit trusts
687 500
Investments in subsidiaries (refer to note 14.15) 93 263 761
Other
3 232 409
Amounts due from group companies 43 954 863
142 521 230
20 780 779
290 750
687 500
39 567 555
3 031 370
55 853 165
120 211 119
89
Shareholders Analysis
and Calendar
Size of Shareholding
Number of
10 000
10 001
25 001
50 001
100 001
Shareholders
Issued
Shares
Shareholders %
Shares %
3 588
84.51
25 000
211
50 000
122
100 000
84
1.98
6 028 232
1.11
200 000
79
1.86
11 672 278
2.16
200 001
500 000
74
1.74
22 179 285
4.10
500 001
- and over
88
2.07 489 722 810
90.42
4 246
100.00 541 593 440
100.00
Companies
555
13.08 294 613 528
54.39
Insurance Companies
66
1.55
39 456 538
7.29
Investment Companies
42
0.99
221 482
0.04
3 988 105
0.73
4.97
3 470 067
0.64
2.87
4 532 663
0.84
Trade Classification
Trust Nominees
296
6.97
34 689 206
6.41
Pension Funds
313
7.37
57 517 220
10.62
Private Individuals
2 827
66.58
10 154 154
1.87
New Non- Residents
147
3.46 104 941 312
19.38
4 246
100.00 541 593 440
100.00
102 829 853
18.99
100 000 000
18.46
Stanbic Nominees (Pvt) Ltd
42 808 782
7.90
Top Ten Shareholders

ZMD Investments (Pvt) Ltd
HM Barbour (Pvt) Ltd
Old Mutual Group
34 275 077
6.33
Standard Chartered Nominees (Pvt) Ltd
33 952 860
6.27
Sarcor Investments (Pvt) Ltd
22 484 058
4.15
Pharaoh Limited
12 939 921
2.39
FED Nominees (Pvt) Ltd
12 124 007
2.24
11 045 944
2.04
Muzika Rubi Holdings (Pvt) Ltd

City & General Holdings (Pvt) Ltd
90
9 822 598
1.81
Other
159 310 340
29.42
541 593 440
100.00
Shareholders Calendar
Eighteenth Annual General Meeting
Financial Year End
21 November 2014
30 June
Interim Reports
6 months to December 2014
12 months to 30 June 2015
Annual Report Published
Nineteenth Annual General Meeting
March 2015
September 2015
November 2015
November 2015
Registered Office
Innscor Africa Limited
Edward Building
1st Street/Nelson Mandela Avenue
Harare, Zimbabwe
Transfer Secretaries
Corpserve Transfer Secretaries (Private) Limited
2nd Floor, ZB Centre
1st Street/Kwame Nkrumah Avenue
Harare, Zimbabwe
Email: enquiries@corpserve.co.zw
ANNUAL REPORT 2014
Notice to Members
NOTICE IS HEREBY GIVEN that the eighteenth Annual General Meeting of members will be held at the Royal Harare Golf Club, 5th Street
extension, Harare, on Friday 21 November 2014 at 08h15, for the purpose of transacting the following business:
Ordinary Business
1. To receive and consider the financial statements for the year ended 30 June 2014 together with the reports of the Directors and Auditors
thereon.
2. To note the resignation at the conclusion of this Annual General Meeting of Mr. D. L. L. Morgan who has advised of his intention to retire
from the Board as the Chairman and a Director after 16 years of service.
3. To re - elect retiring Directors: Mr. J. Koumides and Mr. T. N. Sibanda who retire by rotation and being eligible offer themselves for re-election.
4. To approve the appointment of Mr. A. Fourie who was appointed as a Director of the Company with effect from 22 September 2014, and
who in terms of the Articles of Association of the Company is required to retire from the Board at the Annual General Meeting and being
eligible, offers himself for re-election.
5. To approve Directors fees for the financial year ended 30 June 2014.
6. To approve the remuneration of the auditors for the financial year ended 30 June 2014 and re-appoint Ernst & Young of Harare as
auditors of the Company until the conclusion of the next Annual General Meeting.
Special Business
7. To resolve as an ordinary resolution, with or without amendments: That the Company be and is hereby authorised to make any loan
to any Executive Director or to enter into any guarantee or provide any security in connection with a loan to such Executive Director
for the purpose of enabling him to properly perform his duty as an officer of the Company, as may be determined by the Remuneration
Committee of the Board of Directors, provided that the amount of the loan or the extent of the guarantee or security shall not exceed
the annual remuneration of that Director.
Any Other Business
8. To transact any other business competent to be dealt with at the Annual General Meeting.
Proxies
Members are entitled to appoint one or more proxies to act in the alternative and to attend and vote and speak in their place. A proxy need
not be a member of the Company.
Proxy forms must reach the Companys registered office not less than 48 hours before the meeting.
By order of the Board
INNSCOR AFRICA LIMITED
A D Lorimer
Company Secretary
Harare
10 October 2014
91
Domicile
Company Secretary
The Company is incorporated and domiciled in Zimbabwe.
A D Lorimer
Core Business
Auditors
Fast Moving Consumer Goods
Ernst & Young
Registered Office
Edward Building
Legal Advisors
1st Street/Nelson Mandela Avenue
Coghlan, Welsh and Guest
Harare, Zimbabwe
Principal Bankers
Postal Address
Barclays Bank of Zimbabwe Limited
1 Ranelagh Road
CABS
Highlands
CBZ Bank Limited
P O Box A88 Avondale
MBCA
Harare, Zimbabwe
Standard Chartered Bank Zimbabwe Limited
Contact Details
Transfer Secretaries
Telephone: +263 4 496886 / 496790
Corpserve Transfer Secretaries (Private) Limited
Fax: +263 4 496845
2nd Floor, ZB Centre
Email: admin@innscorafrica.com
1st Street/Kwame Nkrumah Avenue

Harare, Zimbabwe
Email: enquiries@corpserve.co.zw
92
ANNUAL REPORT 2014
Form of Proxy
I / We (Block Letters)
(Incorporated in Zimbabwe)
Registered Office:
Edward Building,
1st St/Nelson Mandela Avenue
P O Box A88, Avondale,
Harare, Zimbabwe
of
being a member of Innscor Africa Limited, hereby appoint
of
or failing him
of
or failing him the Chairman of the Meeting as my/our proxy to vote for me/us on my/our behalf at the Eighteenth Annual General
Meeting of the Company to be held on Friday 21 November 2014 at 08.15 hours and at any adjournment thereof.
Signed this
day of
2014.
Signature of member
NOTE
1. In terms of Section 129 of the Zimbabwe Companies Act (Chapter 24:03) members are entitled to appoint one or more proxies to act
in the alternative and to attend and vote and speak in their place. A proxy need not also be a member of the Company.
2. Regulation 74 of the Companys Articles of Association provides that the instrument appointing a proxy shall be deposited at the

office of the Company not less than 48 hours before the time appointed for holding the meeting.
FOR OFFICIAL USE
NUMBER OF SHARES HELD
ANNUAL REPORT 2014
Change of Address
The attention of shareholders is drawn to the necessity of keeping the transfer secretaries advised of any change in name and/or address.
Shareholders name in full (Block Letters)
New address (Block Letters)
Shareholders signature
93
The Company Secretary

P O Box A88
Avondale
Harare
Zimbabwe
The Company Secretary

P O Box A88
Avondale
Harare
Zimbabwe

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What is the vision and mission of the company?

What is the vision and mission of the company?

What are the main business segments/divisions of the company?

What are the main business segments/divisions of the company?

OUR PASSION FOR VALUE CRE ATION

ANNUAL REPORT 2014

To build a diversified Pan

Innscor Africa Limited is a diversified Pan African

OUR PASSION FOR VALUE CRE ATION

Scope of this Report

ANNUAL REPORT 2014

Group Structure and Activities

GOVERNANCE AND ETHICS APPROACHES

Chairmans Statement and Review of Operations

Governance and Approaches

Directorate and Management

Human Capital Management

Corporate Social Investment

Directors Responsibility and Approval

Company Secretarys Certification

Report of the Directors

Report of the Independent Auditors

Group Financial Statements

Company Statement of Financial Position

Shareholders Analysis and Calendar

OUR PASSION FOR VALUE CRE ATION

Group Structure and Activities

NATIONAL FOODS HOLDINGS LTD

Simon Mazorodze - Harare

National Foods Ltd

National Foods Properties Ltd

Lennard Bread - Bulawayo

Botswana Milling and Produce

Red Seal Manufacturers

Company (Proprietary) Ltd

Breathaway Food Caterers (Pvt) Ltd

Bakers Inn & Mr Baker

Snack Sales and Distribution

COLCOM HOLDINGS LTD

BAOBAB (PVT) LTD

Colcom Foods Ltd

Greatrift Delight (Pvt) Ltd

HAT ON (PVT) LTD

Intercane (Pvt) Ltd

Freddy Hirsch Group (Pvt) Ltd

IRVINES ZIMBABWE (PVT) LTD

REGIONAL FAST FOODS

Fontana (Associate company)

Vida SPAR Deli

ANNUAL REPORT 2014

Group Structure and Activities

NATPAK (PVT) LTD

TV SALES & HOME

SPAR FRANCHISED OUTLETS

TOPS bottle stores

Samsung concept store

SPAR CORPORATE STORES

SHEARWATER ADVENTURES (PVT) LTD

WRS (World Radio Systems)