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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 231
noteS to the finanCial StatementS
for the year ended 30 June 2015
22. INVESTMENT IN ASSOCIATES
THE GROUP
THE GROUP
2015
2014
2013
The investment in associates are as follows:
Country of
incorporation
% Holding
% Holding
% Holding
AfrAsia Zimbabwe Holdings Limited (“AZHL”)
Zimbabwe
62.75
47.01
32.75
AfrAsia Corporate Finance (Africa) Ltd
Mauritius
100.0**
100.0**
50.0
AfrAsia Corporate Finance (Pty) Ltd
South Africa
100.0**
100.0**
50.0
AfrAsia Kingdom Holdings Limited (“AKHL”)
Mauritius
100.0**
52.0
52.0
AfrAsia Bank Limited does not consider AfrAsia Zimbabwe Holdings Limited as its subsidiary as it does not have the power to govern the financial and operating
activities of that company. Accordingly, the financial statements of this entity have not been consolidated in the group financial statements.
Since AZHL is being liquidated, the Group interest is no more accounted as an investment in associate. Refer to note 18 for further explanation as to those
factors that led to the impairment loss.
AKHL is a private limited company incorporated in Mauritius. Its principal activity is to act as an investment holding company.
In prior years, AfrAsia Bank Limited did not consider AKHL as its subsidiary as it was not exposed to or have rights to variability in returns from its involvement
with AKHL and did not have the ability to affect those returns through its power over the entity pursuant to the shareholder’s agreement with the other investor.
Accordingly, the financial statements of these entities were not consolidated in the group financial statements. During the year, the Group obtained control over
AKHL as the latter bought back the shares held by the other shareholder.
AfrAsia Corporate Finance (Pty) Ltd and AfrAsia Corporate Finance (Africa) Ltd are independent corporate finance advisers based in South Africa and Mauritius
respectively. Both are private entities and are not listed on any public exchange. Their advisory services include mergers and acquisitions, debt advisory,
restructuring, equity advisory and Black Economic Empowerment (‘BEE’) Advisory. The Group acquired the remaining 50% equity on 1 October 2013 and from
which date both entities became subsidiaries of the Group.
** Accounted under investment in subsidiaries.
The following table illustrates summarised financial information of the Group’s investment in the associates:
THE GROUP
2015
2014
2013
AfrAsia Zimbabwe Holdings Limited
MUR
MUR
MUR
Opening balance
118,564,966
179,688,223
376,826,129
Additions
-
144,693,183
643,843
Acquisition of subsidiaries
-
74,610,566
-
Share of loss after tax
-
(130,621,292)
(199,904,454)
Foreign exchange movement
-
(4,745,501)
-
Impairment loss
(118,564,966)
(144,246,639)
-
Share of other reserves
-
(813,574)
2,122,705
Closing balance
-
118,564,966
179,688,223