Financial Statements Year Ended Dec 2010

71
Omnicane
Annual Report 2010
Statements of
Comprehensive Income
for the year ended December 31, 2010
THE GROUP THE COMPANY
Notes 2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Turnover 5 3,479,704 3,192,067 275,749 318,926
Loss in fair value of consumable biological
assets 23 (3,241) (3,429) (3,320) (7,202)
Other operating income 6 11,760 1,370 1,273 1,370
3,488,223 3,190,008 273,702 313,094
Operating expenses 7(b) (2,873,072) (2,492,734) (322,795) (303,107)
Operating prot 7 615,151 697,274 (49,093) 9,987
Amortisation of VRS costs 20 (9,663) (5,369) (8,744) (4,449)
Investment income 8 55,255 80,689 220,565 216,152
Finance costs 9 (580,887) (711,980) (180,547) (216,197)
Share of results of associates 17(a) (3,906) (788) - -
Prot before exceptional items 75,950 59,826 (17,819) 5,493
Exceptional items 10 372,918 285,796 372,918 285,796
Prot before taxation 448,868 345,622 355,099 291,289
Taxation 11(a) (132,779) (22,557) (7,737) 2,117
Prot for the year 316,089 323,065 347,362 293,406
Other comprehensive income:
Gain on available-for-sale nancial assets 18 117,436 17,894 11,269 11,127
Deferred tax on revaluation of land 21 (421,498) - (337,455) -
Fair value movement on disposal of
nancial assets - (207,078) - (207,078)
Cash ow hedge (36,625) - - -
Other comprehensive income for the year (340,687) (189,184) (326,186) (195,951)
Total comprehensive income for the year (24,598) 133,881 21,176 97,455
Prot attributable to:
Owners of the parent 248,916 258,399 347,362 293,406
Non-controlling interests 67,173 64,666 - -
316,089 323,065 347,362 293,406
Total comprehensive income attributable to:
Owners of the parent (84,446) 69,215 21,176 97,455
(24,598) 133,881 21,176 97,455
Earnings per share (Rs) 12 3.71 3.86 5.18 4.38
The notes on pages 78 to 114 form an integral part of these nancial statements.
Auditors report on page 68.
72
Omnicane
Annual Report 2010 73
Omnicane
Annual Report 2010
Statements of
Changes in Equity
year ended December 31, 2010
THE GROUP

Attributable to owners of the parent
Modernisation
Fair and agricultural Non-
Share Share Revaluation value Hedging diversication Retained Controlling Total
Note capital premium reserve reserve reserve reserve earnings Total interests equity
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
Balance at
January 1, 2010 502,593 292,450 4,140,392 33,111 - 192,673 661,097 5,822,316 713,165 6,535,481
Total comprehensive
income for the year - - (421,498) 117,436 (29,300) - 248,916 (84,446) 59,848 (24,598)
Transfer - - (32,733) - - (5,218) 37,951 - - -
Dividends 33 - - - - - - (167,531) (167,531) (80,000) (247,531)
Consolidation adjustments - - - - - - 241 241 121 362
Balance at
December 31, 2010 502,593 292,450 3,686,161 150,547 (29,300) 187,455 780,674 5,570,580 693,134 6,263,714
Balance at
January 1, 2009 502,593 292,450 4,143,564 222,295 - 206,186 523,394 5,890,482 708,499 6,598,981
Total comprehensive
income for the year - - - (189,184) - - 258,399 69,215 64,666 133,881
Release on disposal of land - - (3,172) - - - - (3,172) - (3,172)
Transfer - - - - - (13,513) 13,513 - - -
Dividends 33 - - - - - - (134,024) (134,024) (60,000) (194,024)
Consolidation adjustments - - - - - - (185) (185) - (185)
Balance at
December 31, 2009 502,593 292,450 4,140,392 33,111 - 192,673 661,097 5,822,316 713,165 6,535,481
THE COMPANY
Modernisation
and agricultural
Share Share Revaluation Fair value diversication Retained
Note capital premium reserve reserve reserve earnings Total
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
Balance at January 1, 2010 502,593 292,450 3,580,527 16,544 192,673 509,349 5,094,136
Total comprehensive income for the year - - (337,455) 11,269 - 347,362 21,176
Transfer - - (32,733) - (5,218) 37,951 -
Dividends 33 - - - - - (167,531) (167,531)
Balance at December 31, 2010 502,593 292,450 3,210,339 27,813 187,455 727,131 4,947,781
Balance at January 1, 2009 502,593 292,450 3,583,699 212,495 206,186 336,454 5,133,877
Total comprehensive income for the year - - - (195,951) - 293,406 97,455
Transfer - - - - (13,513) 13,513 -
Release (3,172) - - - (3,172)
Dividends 33 - - - - - (134,024) (134,024)
Balance at December 31, 2009 502,593 292,450 3,580,527 16,544 192,673 509,349 5,094,136
Statements of
Financial Position
December 31, 2010
Notes 2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
ASSETS EMPLOYED
Non-current assets
Property, plant and equipment 13 10,625,167 10,886,997 3,865,900 3,903,590
Investment properties 14 9,643 9,643 9,643 9,643
Intangible assets 15 1,161,708 1,147,446 220,434 220,486
Investment in subsidiary companies 16 - - 1,364,831 1,364,831
Investment in associated companies 17 26,771 30,677 10,688 10,688
Investment in nancial assets 18 178,656 60,944 54,424 43,155
Bearer biological assets 19 175,182 178,038 134,315 137,601
Deferred expenditure 20 89,118 26,751 74,457 22,160
Deferred tax assets 21 14,039 94,902 - -
12,280,284 12,435,398 5,734,692 5,712,154
Current assets
Inventories 22 449,539 279,699 12,277 12,109
Consumable biological assets 23 113,310 116,551 89,425 92,745
Receivable from related parties 24 40,897 64,813 1,220,213 1,310,521
Trade and other receivables 25 1,183,841 1,443,395 232,635 565,900
Current tax assets 11(b) 153 242 153 -
Cash in hand and at bank 710,457 810,737 11,761 12,860
2,498,197 2,715,437 1,566,464 1,994,135
Total assets 14,778,481 15,150,835 7,301,156 7,706,289
EQUITY AND LIABILITIES
Capital and reserves
Share capital 26 502,593 502,593 502,593 502,593
Share premium 292,450 292,450 292,450 292,450
Revaluation and other reserves 27 3,994,863 4,366,176 3,425,607 3,789,744
Retained earnings 780,674 661,097 727,131 509,349
Owners interests 5,570,580 5,822,316 4,947,781 5,094,136
Total equity 6,263,714 6,535,481 4,947,781 5,094,136
Non-current liabilities
Borrowings 28 5,091,945 4,351,799 538,142 652,976
Deferred tax liabilities 21 475,591 25,479 346,314 4,264
Retirement benet obligations 29 88,988 85,992 21,569 13,165
5,656,524 4,463,270 906,025 670,405
Current liabilities
Payable to related parties 30 47,152 14,223 31,408 13,203
Trade and other payables 31 670,025 583,490 75,544 40,821
Current tax liabilities 11 19,757 16,852 - 3,102
Borrowings 28 1,681,741 3,065,776 1,127,881 1,701,309
Provisions for VRS and Blue print costs 32 272,037 337,719 44,986 49,289
Proposed dividend 33 167,531 134,024 167,531 134,024
2,858,243 4,152,084 1,447,350 1,941,748
Total equity and liabilities 14,778,481 15,150,835 7,301,156 7,706,289
The nancial statements have been approved for issue by the Board of Directors on 29 March 2011.
Kishore Sunil Banymandhub Jacques M. dUnienville
Chairperson Chief Executive Ocer
The notes on pages 78 to 114 form an integral
part of these nancial statements.
75
Omnicane
Omnicane
Annual Report 2010
Notes to the
Statements of Cash Flows
Statements of Cash Flows
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
(a) Operating prot before working capital
changes as follows:
Prot before tax 448,868 345,622 355,099 291,289
Adjustments for:
Depreciation of property, plant and equipment 399,073 349,148 17,777 21,576
Amortisation of intangible assets 21,362 21,811 52 52
Retirement benet obligations 2,996 (4,676) 8,404 7,415
Dividend income (5,419) (16,952) (121,305) (98,086)
Interest income (49,836) (63,737) (99,260) (118,066)
Interest expense 651,433 726,934 180,360 218,223
Prot on disposal of nancial assets - (262,055) - (262,055)
Share of results of associates 3,906 788 - -
Prot on disposal of land (372,918) (23,741) (372,918) (23,741)
Prot on disposal of plant and equipment (11,760) (1,370) (1,273) (1,370)
Loss in fair value of consumable biological assets 3,241 3,429 3,320 7,202
Amortisation of bearer biological assets 45,475 43,647 35,537 34,165
Amortisation of VRS costs 9,663 5,369 8,744 4,449
Operating prot before working capital changes 1,146,084 1,124,217 14,537 81,053
(b) Working capital requirements comprise
of the following:
Inventories (169,840) 80,695 (168) 3,685
Trade and other receivables 299,869 129,854 373,218 (198,422)
Receivable from related parties 23,916 (36,838) 90,308 (189,651)
Trade and other payables 86,535 (44,855) 34,723 (3,848)
Payable to related parties 32,929 1,005 18,205 (80)
Provisions for VRS and Blue print costs (65,682) - (4,303) -
Total working capital requirements 207,727 129,861 511,983 (388,316)
(c) Income tax paid
Taxation is reconciled to the amounts disclosed in
the statement of comprehensive income as follows:
Amounts due at beginning of the year (16,610) (12,894) (3,102) (6,971)
Per statement of comprehensive income (23,302) (20,647) (3,142) (3,014)
Amounts due at the end of the year 19,604 16,610 (153) 3,102
Total income tax paid (20,308) (16,931) (6,397) (6,883)
(d) Dividends paid
Dividends are reconciled to the amounts disclosed
in the statement of comprehensive income as follows:
Amounts due at beginning of the year (134,024) (67,012) (134,024) (67,012)
Dividends declared 167,531 (134,024) (167,531) (134,024)
Amounts due at the end of the year (167,531) 134,024 167,531 134,024
Dividends paid (134,024) (67,012) (134,024) (67,012)
(e) Cash and cash equivalents
Cash and cash equivalents consist of cash in hand and balances with banks and bank overdrafts.
Cash and cash equivalents are represented by:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Cash in hand and at bank 566,303 646,583 11,761 12,860
Debt service reserve account 144,154 164,154 - -
Bank overdrafts (1,099,532) (1,985,266) (997,475) (1,203,088)
(389,075) (1,174,529) (985,714) (1,190,228)
Notes 2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Cash ows from operating activities
Operating prot before working capital changes a 1,146,084 1,124,217 14,537 81,053
Working capital requirements b 207,727 129,861 511,983 (388,316)
Net cash generated from/
(absorbed in) operations 1,353,811 1,254,078 526,520 (307,263)
Interest paid (651,433) (726,934) (180,360) (214,085)
Income tax paid c (20,308) (16,931) (6,397) (6,883)
Cash inow/(outow) from operating activities 682,070 510,213 339,763 (528,231)
Cash ows from investing activities
Purchase of property, plant and equipment (184,072) (879,504) (26,735) (63,370)
Investment in bearer biological assets (42,619) (43,574) (32,251) (31,832)
Intangible assets (35,624) (69,775) - (1,038)
Acquisition of investments in nancial assets (276) - - -
Acquisition of investments in associates - (10,588) - (10,588)
Proceeds on disposal of land 376,579 - 376,579 -
Proceeds on disposal of plant and equipment 14,975 5,493 4,307 5,493
Proceeds from disposal of nancial assets - 310,000 - 310,000
Deferred expenditure - VRS costs (72,030) (4,397) (61,041) (4,394)
Interest received 49,836 63,737 99,260 115,953
Dividends received from subsidiary companies - - 119,419 83,800
Dividends received from available-for-sale investments 5,419 16,952 1,886 14,286
Cash ow from/(used in) investing activities 112,188 (611,656) 481,424 418,310
Financing activities
Dividends paid to companys shareholders d (134,024) (67,012) (134,024) (67,012)
Dividends paid to minority shareholders (80,000) (60,000) - -
Payments of long-term borrowings (866,570) (246,307) (205,921) (108,035)
Proceeds from long-term borrowings 1,390,250 381,709 - -
Net repayments from
short-term borrowings (281,835) - (276,728) -
Cash ow from/(used in) nancing activities 27,821 8,390 (616,673) (175,047)
Increase/(decrease) in cash and cash equivalents 822,079 (93,053) 204,514 (284,968)
Cash and cash equivalents at beginning of the year (1,174,529) (1,081,476) (1,190,228) (905,260)
Eect of foreign exchange rate changes (36,625) - - -
Cash and cash equivalents at closing of the year e (389,075) (1,174,529) (985,714) (1,190,228)
77
Omnicane
Omnicane
Annual Report 2010
(a) Basis of preparation (Continued)
distributed is recognised in prot or loss. This
IFRIC will not have any impact on the Groups
nancial statements.
IFRIC 18, Transfers of Assets from Customers,
addresses the treatment for assets transferred
from a customer in return for connection to a
network or ongoing access to goods or services,
or both. It requires the transferred assets to be
recognised initially at fair value and the related
revenue to be recognised immediately; or, if there
is a future service obligation, revenue is deferred
and recognised over the relevant service period.
This IFRIC will not have any impact on the Groups
nancial statements.
Amendments to IFRS 1, Additional Exemptions for
First-time Adopters exempt entities that use the
full cost method for oil and gas properties from
retrospective application of IFRSs. It also exempts
entities with existing leasing contracts from
reassessing the classication of those contracts in
accordance with IFRIC 4, Determining whether an
arrangement contains a lease. The amendment is
not expected to have any impact on the Groups
nancial statements.
Amendments to IFRS 2, Group Cash-settled
Share-based Payment Transactions. In addition
to incorporating IFRIC 8, Scope of IFRS 2, and
IFRIC 11, IFRS 2 Group and treasury share
transactions, the amendments expand on the
guidance in IFRIC 11 to address the classication
of group arrangements that were not covered
by that interpretation. This amendment is not
expected to have any impact on the Groups
nancial statements.
Improvements to IFRSs (issued May 22, 2008)
IFRS 5 (Amendment), Non-current Assets Held
for Sale and Discontinued Operations, claries
that all of a subsidiarys assets and liabilities are
classied as held for sale if a partial disposal sale
plan results in loss of control. Relevant disclosure
should be made for this subsidiary if the denition
of a discontinued operation is met.
The amendment will not have an impact on the
Groups operations.
Improvements to IFRSs (issued April 16, 2009)
IAS 1 (Amendment), Presentation of Financial
Statements. The amendment claries that the
potential settlement of a liability by the issue of
equity is not relevant to its classication as current
or non-current. By amending the denition
of current liability, the amendment permits a
liability to be classied as non-current (provided
that the entity has an unconditional right to defer
settlement by transfer of cash or other assets for
at least 12 months after the accounting period)
notwithstanding the fact that the entity could be
required by the counterparty to settle in shares at
any time. This amendment is not expected to have
any impact on the Groups nancial statements.
IAS 7 (Amendment), Statement of Cash Flows,
claries that only expenditure that results in a
recognised asset in the statement of nancial
position can be classied as a cash ow from
investing activities. This amendment is unlikely
to have an impact on the Groups nancial
statements.
IAS 17 (Amendment) Leases, claries that
when a lease includes both land and buildings,
classication as a nance or operating lease is
performed separately in accordance with IAS
17s general principles. Prior to the amendment,
IAS 17 generally required a lease of land with
an indenite useful life to be classied as an
operating lease, unless title passed at the end of
the lease term. A lease newly classied as a nance
lease should be recognised retrospectively. The
amendment will not have an impact on the
Groups operations.
IAS 18 (Amendment), Revenue. An additional
paragraph has been added to the appendix to IAS
18, providing guidance on whether an entity is
acting as principal or agent.
IAS 36 (Amendment), Impairment of Assets,
claries that for the purpose of impairment
testing, the cash- generating unit or groups
of cash-generating units to which goodwill
is allocated should not be larger than an
operating segment (as dened by IFRS 8,
Operating segments) before aggregation.
The amendment will not have an impact on
the Groups operations.
IAS 38 (Amendment), Intangible Assets,
claries guidance in measuring the fair value
of an intangible asset acquired in a business
combination and it permits the grouping of
intangible assets as a single asset if each asset has
similar useful economic lives. The amendment
removes the exceptions from recognising
intangible assets on the basis that their fair values
cannot be reliably measured.
Notes to the
Financial Statements (Continued)
1 GENERAL INFORMATION
Omnicane Limited is a limited liability company
incorporated and domiciled in Mauritius.
The address of its registered oce is 7th Floor,
Anglo-Mauritius House, Adolphe de Plevitz
Street, Port Louis.
These nancial statements will be submitted for
consideration and approval at the forthcoming
Annual Meeting of Shareholders of the company.
2 SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the
preparation of these nancial statements are set
out below. These policies have been consistently
applied to all the years presented, unless
otherwise stated.
(a) Basis of preparation
The nancial statements of Omnicane Limited
(the Company) and its subsidiaries (theGroup)
comply with the Companies Act 2001 and are
prepared in accordance with International
Financial Reporting Standards (IFRS).
Where necessary, comparative gures have
been amended to conform with changes in
presentation in the current year. The nancial
statements are prepared under the historical cost
convention, except that:
(i) Freehold Land is carried at revalued amount;
(ii) Investment properties are stated at fair value;
(iii) Consumable biological assets are stated at
fair value; and
(iv) Available-for-sale securities are stated at
their fair value.
Standards, Amendments to published Standards
and Interpretations eective in the reporting
period
IAS 27, Consolidated and Separate Financial
Statements (Revised 2008), requires the eects
of all transactions with non-controlling interests
to be recorded in equity if there is no change in
control and these transactions will no longer
result in goodwill or gains and losses. The revised
standard also species the accounting when
control is lost. Any remaining interest in the entity
is remeasured to fair value, and a gain or loss is
recognised as prot or loss.
This IAS will not have any impact on the Groups
nancial statements.
IFRS 3, Business Combinations (Revised 2008),
continues to apply the acquisition method to
business combinations, with some signicant
changes. For example, all payments to purchase
a business are to be recorded at fair value at
the acquisition date, with contingent payments
classied as debt subsequently remeasured
through the statement of comprehensive income.
There is a choice on an acquisition-by-acquisition
basis to measure the non-controlling interest in
the acquiree at fair value or at the non-controlling
interests proportionate share of the acquirees
net assets. All acquisition-related costs should be
expensed. This IFRS will not have any impact on
the Groups nancial statements.
Amendments to IAS 39, Eligible hedged items,
prohibit designating ination as a hedgeable
component of a xed rate debt. In a hedge of
one-sided risk with options, it prohibits including
time value in the hedged risk. The amendment is
not expected to have any impact on the Groups
nancial statements.
Amendments to IFRS 1 and IAS 27, Cost of an
Investment in a Subsidiary, clarify that the cost of
a subsidiary, jointly controlled entity or associate
in a parents separate nancial statements, on
transition to IFRS, is determined under IAS 27 or as
a deemed cost. Dividends from a subsidiary, jointly
controlled entity or associate are recognised as
income. There is no longer a distinction between
pre-acquisition and post-acquisition dividends.
The cost of the investment of a new parent in
a group (in a reorganisation meeting certain
criteria) is measured at the carrying amount
of its share of equity as shown in the separate
nancial statements of the previous parent. The
amendment is not expected to have any impact
on the Groups nancial statements.
IFRIC 17, Distributions of Non-cash Assets to
Owners, claries that a dividend payable is
recognised when appropriately authorised and
no longer at the entitys discretion. An entity
measures distributions of assets other than cash
when it pays dividends to its owners, at the fair
value of the net assets to be distributed. The
dierence between fair value of the dividend
paid and the carrying amount of the net assets
Notes to the
Financial Statements
79
Omnicane
Omnicane
Annual Report 2010
Amendment to IFRS 1 Limited Exemption from
Comparatives IFRS 7 Disclosures for First-time
Adopters (Eective July 1, 2010)
Improvements to IFRSs (issued May 6, 2010)
IFRS 1 First-time Adoption of International
Financial Reporting Standards
IFRS 3 Business Combinations (Eective July 1,
2010)
IFRS 7 Financial Instruments: Disclosures
IAS 1 Presentation of Financial Statements
IAS 27 Consolidated and Separate Financial
Statements (Eective July 1, 2010)
IAS 34 Interim Financial Reporting
IFRIC 13 Customer Loyalty Programmes
Where relevant, the Group is still evaluating
the eects of these Standards, amendments to
published Standards and Interpretations issued
but not yet eective, on the presentation of its
nancial statements.
The preparation of nancial statements in
conformity with IFRS requires the use of certain
critical accounting estimates. It also requires
management to exercise its judgement in the
process of applying the groups accounting
policies. The areas involving a higher degree
of judgement or complexity, or areas where
assumptions and estimates are signicant to the
nancial statements, are disclosed in Note 4.
(b) Turnover
Turnover represents the gross proceeds of sugar,
molasses, bagasse and income receivable for the
supply of electricity to the National Grid of the
Central Electricity Board.
Sugar and molasses proceeds are recognised on
total production of the crop year. Bagasse proceeds
are accounted as and when it is receivable for the
Group. Sugar and molasses prices are based on
prices recommended by the Mauritius Chamber
of Agriculture for the crop year after consultation
with the Mauritius Sugar Syndicate. The dierence
between the recommended price and the nal
price is reected in the nancial year in which it is
established.
Other revenues earned by the Group are
recognised on the following basis:

Dividend income - when the shareholders right
to receive payment is established.
Interest income - on a time-proportion basis
using the eective interest method.
SIFB compensation - on an accrual basis.
(c) Government grants
Government grants are not recognised until
there is reasonable assurance that the Group will
comply with the conditions attaching to them
and that the grants will be received.
Government grants are recognised as income over
the periods necessary to match them with the
costs for which they are intended to compensate,
on a systematic basis. Government grants that
are receivable as compensation for expenses
or losses already incurred or for the purpose of
giving immediate nancial support to the Group
with no future related costs are recognised in
the statement of comprehensive income in the
period in which they become receivable.
(d) Property, plant and equipment
All property, plant and equipment are initially
recorded at cost. Freehold Land is subsequently
revalued. The last revaluation was carried out
by Gexim land Consultants, property valuers in
December 2007 based on open market value.
Increases in the carrying amount arising on
revaluation are credited to revaluation and
other reserves in shareholders equity. Decreases
that oset previous increases of the same asset
are charged against the revaluation reserve; all
other decreases are charged to the statement of
comprehensive income.
Depreciation is calculated on the straight line
method to write o the cost of assets, or the
revalued amounts, to their residual values over
their estimated useful lives as follows:
The annual rates used for the purpose are :
Buildings 2 - 2.25 %
Power Plant & Equipment 5 - 7 %
Factory & Equipment 2 - 20 %
Renery Plant 5 %
Plant & Equipment 5 - 20 %
Notes to the
(Continued)
(a) Basis of preparation (Continued)
Improvements to IFRSs (issued April 16, 2009)
(contd)
Intangible assets acquired in a business
combination that are separable or arise from
contractual or other legal rights should be
recognised. The amendment species dierent
valuation techniques that may be used to value
intangible assets where there is no active market.
The amendment is unlikely to have an impact on
IAS 39 (Amendment), Financial Instruments:
Recognition and Measurement claries that the
scope exemption within IAS 39 only applies to
forward contracts that will result in a business
combination at a future date, as long as the
term of the forward contract does not exceed
a reasonable period normally necessary to
obtain any required approvals and to complete
the transaction. The amendment removes
reference to transactions between segments as
being hedgeable transactions in individual or
separate nancial statements and claries that
amounts deferred in equity are only reclassied
to prot or loss when the underlying hedged
cash ows aect prot or loss. The amendment is
not expected to have an impact on the Groups
statement of comprehensive income.
IFRS 2 (Amendment), Share-based Payment,
conrms that, transactions in which the entity
acquires goods as part of the net assets acquired
in a business combination as dened by IFRS
3 (2008) Business Combinations, contribution
of a business on formation of a joint venture
and common control transactions are excluded
from the scope of IFRS 2 Share-based Payment.
The amendment will not have an impact on the
Groups operations.
IFRS 5 (Amendment), Non-current Assets Held
for Sale and Discontinued Operations. The
amendment claries that IFRS 5 species the
disclosures required in respect of non-current
assets (or disposal groups) classied as held for
sale or discontinued operations. It also claries
that the general requirement of IAS 1 still apply,
in particular paragraph 15 (to achieve a fair
presentation) and paragraph 125 (sources of
estimation uncertainty) of IAS 1. The amendment
will not have an impact on the Groups operations.

IFRS 8 (Amendment), Operating Segments,
claries that the requirement for disclosing a
measure of segment assets is only required when
the Chief Operating Decision Maker reviews that
information. This amendment is unlikely to have
an impact on the Groups nancial statements.
IFRIC 9 (Amendment), Reassessment of
Embedded Derivatives, claries that embedded
derivatives in contracts acquired in a combination
between entities or businesses under common
control or the formation of a joint venture are
outside the scope of IFRIC 9. This amendment is
unlikely to have an impact on the Groups nancial
statements.
IFRIC 16 (Amendment), Hedges of a Net
Investment in a Foreign Operation, claries that
hedging instruments may be held by any entity or
entities within the group. This includes a foreign
operation that itself is being hedged.
This amendment is unlikely to have an impact on
Standards, Amendments to published Standards
and Interpretations issued but not yet eective
Certain standards, amendments to published
standards and interpretations have been issued
that are mandatory for accounting periods
beginning on or after January 1, 2011 or later
periods, but which the Group has not early
adopted.
At the reporting date of these nancial statements,
the following were in issue but not yet eective:
Classication of Rights Issues (Amendment to IAS
32) (Eective February 1, 2010)
IFRIC 19 Extinguishing Financial Liabilities with
Equity Instruments (Eective July 1, 2010)
Amendments to IFRIC 14 Prepayments of a
Minimum Funding Requirement
IAS 24 Related Party Disclosures (Revised 2009)
Severe Hyperination and Removal of Fixed Dates
for First-time Adopters (Amendments to IFRS1)
Deferred Tax: Recovery of Underlying Assets
(Amendments to IAS 12)
IFRS 9 Financial Instruments
Disclosures Transfers of Financial Assets
(Amendments to IFRS 7)

Notes to the
81
Omnicane
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Annual Report 2010
Goodwill
Goodwill represents the excess of the cost of
an acquisition over the fair value of the groups
share of the net identiable assets of the acquired
subsidiary/associate at the date of acquisition.
Goodwill on acquisition of subsidiaries is included
in intangible assets. Goodwill on acquisition of
associates is included in investment in associates.
Goodwill is tested annually for impairment and
carried at cost less any accumulated impairment
losses. For the purpose of impairment testing,
goodwill is allocated to each of the groups cash
generating units.
If the recoverable amount of the cash-generating
unit is less than the carrying amount of the unit,
the impairment loss is allocated rst to reduce the
carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro-
rata on the basis of the carrying amount of each
asset in the unit. An impairment loss recognised
for goodwill is not reversed in a subsequent
period.
Blue Print costs
The cash compensation together with the costs
of land and infrastructure payable under the Blue
Print and Early Retirement Scheme is capitalised
as deferred expenditure. Such costs are charged
to statement of comprehensive income when
the associated benets related to the special
rights to acquire, convert and sell agricultural
land are realised. At the end of each nancial
year, the carrying amount is subject to testing
for impairment and reduced to the recoverable
amount, if this is less.
Management contract - The Company
The Company had acquired the rights to manage
its subsidiary Omnicane Milling Operations
Limited under a management contract. The cost
has been recognised as an intangible asset with
indenite life as the contract does not have a
dened lifetime. The contract is assessed annually
for impairment.
Energy management contract - The Group
Omnicane Milling Operations Limited acquired
the rights to the management contract between
Omnicane Milling Operations Limited, Omnicane
Thermal Energy Operations (St Aubin) Limited
and Omnicane Thermal Energy Operations (La
Baraque) Limited, two energy generating entities.
This management contract will run for a period
of twenty years in line with the provisions of the
Purchasing Power Agreement between Omnicane
Thermal Energy Operations (St Aubin) Limited and
Central Electricity Board and between Omnicane
Thermal Energy Operations (La Baraque) Limited
and Central Electricity Board.
These rights have been recognised as an intan-
gible asset and are amortised over the life of the
contract.
Factory upgrading and modernising expenditure
Following the closure of Riche-en-Eau, Mon
Tresor Mill and Saint Flix Mill, Omnicane Milling
Operations Limited has become the sole cane
receiving mill in the Southern region. Omnicane
Milling operations Limited has therefore
upgraded and modernised its factory to cater
for the transfer of cane to its mill. The cost of
upgrade and modernisation will be nanced
through special rights to acquire, convert and
sell agricultural land under the provisions of the
Sugar Industry Eciency Act (SIE ACT). Omnicane
Milling Operations Limited has recognised
these rights as an intangible asset and valued
them at the cost of the expenditure incurred.
Management has determined that this intangible
asset has an indenite life and is assessed for
impairment on an annual basis.
Rebranding cost
In 2009, the Group completed a rebranding
exercise aiming at regrouping all members under
a common brand.
All cost associated to the rebranding exercise
has been capitalised and included as intangible
assets. Rebranding cost is amortised over a period
of 20 years, time at which a full review of the
brand will be performed.
(h) Investment in subsidiaries
The Company
Investments in subsidiary companies are carried
at cost. The carrying amount is reduced to recog-
nise any impairment in the value of individual in-
vestments.
Notes to the
(Continued)
(d) Property, plant and equipment (Continued)
Where the carrying amount of an asset is greater
than its estimated recoverable amount, it is
written down immediately to its recoverable
amount.
Gains and losses on disposal of property, plant
and equipment are determined by reference to
their carrying amount and are taken into account
in determining operating prot. On disposal of
revalued assets, amounts in revaluation and other
reserves relating to that asset are transferred to
retained earnings.
(e) Investment properties
Investment properties consist of land held for
capital appreciation and are stated at fair value.
Gains or losses arising from changes in the fair
value of investment properties are included in the
statement of comprehensive income in the year
in which they arise.
Investment properties have been valued at fair
value by Gexim Land Consultants, property valu-
ers, in December 2003. The valuation was arrived
by reference to market evidence of transaction
prices for similar properties.
(f) Borrowing costs
Borrowing costs directly attributable to the ac-
quisition, construction or production of qualify-
ing assets, which are assets that necessarily take
a substantial period of time to get ready for their
intended use or sale are capitalised as part of the
cost of the assets until such time as the assets
are substantially ready for their intended use or
sale. All other borrowing costs are charged to the
statement of comprehensive income in the pe-
riod in which they are incurred.
(g) Intangible assets
Intangible assets acquired seperately are mea-
sured on initial recognition at cost. The cost of
intangible assets acquired in a business combi-
nation is fair value as at the date of acquisition.
Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation
and any accumulated impairment losses.
Internally generated intangible assets, excluding
capitalised development costs, are not capitalised
and expenditure is reected in the income
statement in the year in which the expenditure is
incurred.
The useful lives on intangible assets are assessed
as either nite or indenite.
Intangible assets with nite lives are amortised
over the useful economic life and assessed for
impairment whenever there is an indication
that the intangible asset may be impaired.
The amortisation period and the amortisation
method for an intangible asset with a nite life
is reviewed at each nancial year end. Changes
in the expected useful life or the expected
pattern of consumption of future economic
benets embodied in the asset is accounted for
by changing the amortisation period or method,
as appropriate, and are treated as changes in
accounting estimates. The amortisation expense
on intangible assets with nite lives is recognised
in the statement of comprehensive income in
the expense category with the function of the
intangible asset.
Intangible assets with indenite useful lives are not
amortised, but are tested for impairment annually
either individually or at the cash generating unit
level. The assessment of indenite life is reviewed
annually to determine whether the indenite life
continues to be supportable. If not, the change
in useful life from indenite to nite is made on a
prospective basis.
Gains or losses arising from derecognition of an
intangible asset are measured as the dierence
between the net disposal proceeds and the
carrying amount of the asset and are recognised
in the statement of comprehensive income when
the asset is derecognised.
Professional fees relating to the Power purchase
agreement
In the case of professional fees incurred in relation
to the Purchasing Power Agreement (PPA), the
useful life is taken as the term of the contract, that
is 20 years.
Accounting software
The accounting software has been granted for a
period of three years with the option of renewal
at the end of this period.
Notes to the
83
Omnicane
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Annual Report 2010
(l) Consumable biological assets
Standing canes are measured at fair value. The fair
value of the living plants held for sale is based on
expected selling price and future direct costs to
bring the biological assets to saleable condition,
discounted at an appropriate discount rate to the
reporting date.
(m) Deferred Expenditure
Voluntary Retirement Scheme (VRS) costs
VRS costs are capitalised as deferred expenditure
when incurred as the costs will be recouped
through the sale of land on which no land
conversion tax will be payable. VRS costs is
amortised over a period of seven years. The
amortisation period is reviewed periodically to
reect the circumstances of the company. When
the sale of land is realised, the corresponding
unamortised portion of deferred cost will be
recognised in the statement of comprehensive
income.
(n) Deferred Taxation
Deferred income tax is provided, using the liability
method, for all temporary dierences arising
between the tax bases of assets and liabilities
and their carrying values for nancial reporting
purposes.
The principal temporary dierences arise from
depreciation on property, plant and equipment,
revaluation of certain non-current assets,
provisions for retirement benet obligations and
tax losses carried forward. Deferred tax assets
relating to the carry forward of unused tax losses
are recognised to the extent that it is probable
that future taxable prot will be available against
which the unused tax losses can be utilised.
(o) Inventories
Inventories are stated at the lower of cost and
net realisable value. Cost is determined by the
weighted average method. The cost of nished
goods and work in progress comprises raw
materials, direct labour, other direct costs and
related production overheads but excludes
interest expense. Net realisable value is the
estimate of the selling price in the ordinary course
of business less the costs of completion and
selling expenses.
(p) Land under development
Land under development comprise of cost of
land to be sold and related infrastructural costs.
This expenditure is released to the statement
of comprehensive income to the extent cash is
received on the sale of land.
(q) Retirement benet obligations
Dened benet pension plan
The cost of providing benets are actuarially
determined using the projected unit credit
method. The present value of funded obligations
is recognised in the statement of nancial position
as a non-current liability after adjusting for the fair
value of plan assets, any unrecognised actuarial
gains and losses and any unrecognised past
service cost. The valuation of funded obligations
is carried out annually by a rm of actuaries.
The current service cost and any recognised past
service cost are included as an expense together
with the associated interest cost, net of expected
return on plan assets.
A portion of the actuarial gains and losses will
be recognised as income or expense if the net
cumulative unrecognised actuarial gains and
losses at the end of the previous accounting
period exceeded the greater of:
(i) 10% of the present value of the dened benet
obligation at that date; and
(ii) 10% of the fair value of plan assets at that date.
Other retirement benets
The present value of other retirement benets
in respect of Labour Act gratuities is recognised
in the statement of nancial position as a non-
current liability.
State plan and dened contribution pension plan
Contributions to the National Pension Scheme
and dened contribution pension plan are
expensed to the statement of comprehensive
income in the period in which they fall due.
Notes to the
(Continued)
(h) Investment in subsidiaries (Continued)
The Group
The consolidated nancial statements incorporate
the nancial statements of the company and
enterprises controlled by the company (its
subsidiaries) made up to the nancial period.
Control is achieved where the company has the
power to govern the nancial and operating
policies of an investee enterprise so as to
obtain benets from its activities. The results of
subsidiaries acquired or disposed of during the
period are included in the consolidated statement
of comprehensive income from the date of their
acquisition or up to the date of their disposal.
The consolidated nancial statements have been
prepared in accordance with the acquisition
method.
Goodwill on acquisition of subsidiaries is included
in intangible assets.
Any net excess of the groups interest in the
net fair value of the acquirees net identiable
assets over cost is recognised in the statement of
comprehensive income as negative goodwill.
All signicant intercompany transactions,
balances and unrealised gains on transactions
between group companies are eliminated.
Unrealised losses are also eliminated unless cost
cannot be recovered.
Where necessary, adjustments are made to the
nancial statements of subsidiaries to bring the
accounting policies used in line with those used
by other members of the group.
(i) Investment in associated companies
The Company
Investments in associated companies are
carried at cost. The carrying amount is reduced
to recognise any impairment in the value of
individual investments.
The Group
An associate is an equity over which the Group
has signicant inuence but not control, or joint
control.
Investments in associated companies are
accounted for by the equity method.
Investment in associates are initially recorded at
cost as adjusted by post acquisition changes in
the Groups share of the net assets of the associate
less any impairment in the value of individual
investments. When the Groups share of losses
exceeds its interests in an associate, the Group
discontinues recognising further losses, unless
it has a legal or constructive obligation to make
payments on behalf of the associate.
Unrealised prots and losses are eliminated to the
extent of the Groups interests in the associate.
(j) Business combinations
The acquisition of subsidiaries is accounted for
using the purchase method. The cost of the
acquisition is measured at the aggregate of the
fair values, at the date of exchange, of assets
given, liabilities incurred or assumed, and equity
instruments issued by the group in exchange for
control of the acquiree, plus any costs directly
attributable to the business combination. The
acquirees identiable assets, liabilities and
contingent liabilities that meet the conditions for
recognition under IFRS 3 are recognised at their
fair values at the acquisition date.
Goodwill arising on acquisition is recognised as
an asset and initially measured at cost, being the
excess of the cost of the business combination
over the groups interest in the net fair value of
the identiable assets, liabilities and contingent
liabilities recognised. If, after reassessment,
the Groups interest in the net fair value of the
acquirees identiable assets, liabilites and
contingent liabilities exceeds the cost of the
business combination, the excess is recognised
immediately in the statement of comprehensive
income.
(k) Bearer biological assets
Cane replantation costs are deferred at cost and
amortised over 7 years.
Notes to the
85
Omnicane
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Annual Report 2010
(vi) Cash and cash equivalents
Cash and cash equivalents include cash in
hand, deposits held at call with banks and bank
overdrafts.
Bank overdrafts are shown within borrowings in
current liabilities on the statement of nancial
position.
(vii) Equity instruments
Equity instruments are recorded at the proceeds
received, net of direct issue costs.
(viii) Share capital
Ordinary shares are classied as equity.
(u) Provisions
Provisions are recognised when the Group has
a present or constructive obligation as a result
of past events which will probably result in
an outow of economic benets that can be
reasonably estimated. They are measured at
the directors best estimate of the expenditure
required to settle the obligation at the reporting
date. Provisions are reviewed at each statement
of nancial position date and adjusted to reect
the current best estimate.
(v) Alternative Minimum Tax (AMT)
Alternative Minimum Tax (AMT) is provided for,
where a Company which has a tax liability of less
than 7.5% of its book prot pays a dividend. AMT
is calculated as the lower of 10% of the dividend
paid and 7.5% of book prot.
(w) Impairment of assets
Assets that have an indenite useful life are not
subject to amortisation but are tested annually
for impairment.
Assets that are subject to amortisation are
reviewed for impairment whenever events or
changes in circumstances indicate that the
carrying amount may not be recoverable. An
impairment loss is recognised for the amount by
which the carrying amount of the asset exceeds
its recoverable amount. The recoverable amount
is the higher of an assets fair value less costs to
sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest
levels for which there are separately identiable
cash ows (cash-generating units).
(x) Related parties
Related parties are individuals and companies
where the individual or company has the ability,
directly or indirectly, to control the other party or
exercise signicant inuence over the other party
in making nancial and operating decisions.
(y) Dividend distribution
Dividend distribution to the companys share
holders is recognised as a liability in the Groups
nancial statements in the period in which the
dividends are declared.
(z) Cash ow hedge
The Company has a subsidiary which has a foreign
bank loan (hedge item) denominated in Euro
and has its revenue stream (hedge instrument)
in Euro. The subsidiary has a cash ow hedge
whereby the foreign exchange exposure arising
from translation of the bank loan is hedged
against the revenue stream.
Exchange dierences arising from the translation
of the loan is taken to Hedging reserve. The
realised gain/(loss) on repayment of the bank
loan is then released to the statement of
comprehensive income.
When the hedging instrument expires or is sold,
or when a hedge no longer meets the criteria for
hedge accounting, any cumulative gain or loss
existing in equity at that time remains in equity
and is recognised when the forecast transaction
is ultimately recognised in the statement
of comprehensive income. When a forecast
transaction is no longer expected to occur, the
cumulative gain or loss that was reported in
equity is immediately transferred to the statement
of comprehensive income within nance costs.
(aa) Segment reporting
Segment information presented relate to the
operating segments that are engaged in the
business activities for which revenues are earned
and expenses incurred.
Notes to the
(Continued)
(r) Foreign currencies
Transactions denominated in foreign currencies
are recorded at the rate of exchange ruling on the
transaction date.
Monetary assets and liabilities expressed in
foreign currencies are translated into Mauritian
Rupees at the rates of exchange ruling at the
statement of nancial position date. Exchange
dierences arising from foreign currencies
transactions are accounted for in the statement
of comprehensive income.
(s) Income tax
The tax currently payable is based on taxable
prot for the year. Taxable prot diers from
prot as reported in the income statement
because it excludes items of income or expense
that are taxable or deductible in other years and
it further excludes items that are never taxable
or deductible.
(t) Financial instruments
The Groups accounting policies in respect of the
main nancial instruments are set out below:
(i) Investment in nancial assets
Initial recognition
Investments are recognised on a trade-date basis
and are initially measured at cost.
Subsequent recognition
Available-for-sale securities
Available-for-sale securities are measured
at subsequent reporting dates at fair value.
Unrealised gains and losses on such securities
are recognised directly in equity (revaluation
and other reserves - fair value reserve) until the
security is disposed of or found to be impaired, at
which time the cumulative gain or loss previously
recognised in equity is included in the net prot
or loss for the period.
Fair value
The fair value of publicly traded available-for-sale
securities is based on their market value which
is calculated by reference to the Stock Exchange
prices at the close of business on statement of
nancial position date.
The unquoted investments are valued at cost
less any impairment loss recognised to reect
irrecoverable amounts. In the opinion of the
directors, cost is equivalent to fair value.
(ii) Loans and receivables
Loans and receivables are non-derivative nancial
assets with xed or determinable payments that
are not quoted in an active market. They arise
when the Group provides money, goods or
services directly to a debtor with no intention
of trading the receivable. They are included in
current assets when maturity is within twelve
months after the end of the reporting period date
or non-current assets for maturities greater than
twelve months.
(iii) Trade receivables
Trade receivables are recognised initially at fair
value and subsequently measured at amortised
cost using the eective interest method, less
provision for impairment. A provision for
impairment of trade receivables is established
when there is objective evidence that the Group
will not be able to collect all amounts due
according to the original terms of receivables.
The amount of the provision is the dierence
between the assets carrying amount and
the present value of estimated future cash
ows, discounted at the eective interest rate.
The amount of provision is recognised in the
statement of comprehensive income.
(iv) Borrowings
Interest-bearing bank loans, debentures and
overdrafts are recorded at the proceeds received,
net of direct issue costs. Finance charges,
including premiums payable on settlement or
redemption, are accounted for on an accrual basis
and are added to the carrying amount of the
instrument to the extent that they are not settled
in the period in which they arise.
Borrowings are classied as current liabilities
unless the Group has an unconditional right to
defer settlement of the liability for at least twelve
months after the end of the reporting period.
(v) Trade payables
Trade payables are stated at fair value and
subsequently measured at amortised cost using
the eective interest method.
Notes to the
87
Omnicane
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Annual Report 2010
(b) Credit risk (Continued)
The Groups main debtors are the Mauritius
Sugar Syndicate on account of sugar proceeds
receivable, and the Central Electricity Board for
the sale of electricity.
The Groups energy clusters credit risk is highly
mitigated by the fact that accounts receivable
from its sole customer, the Central Electricity
Board, is guaranteed by the Government.
(c) Liquidity risk
Prudent liquidity risk management implies
maintaining sucient cash marketable funding
through an adequate amount of committed
credit facilities. The Group aims at maintaining
exibility in funding by keeping committed credit
lines available.
Management monitors rolling forecasts of the
Groups liquidity reserve on the basis of expected
cash ow and does not foresee any major liquidity
risk over the next two years.

The table below analyses the Groups nancial liabilities into relevant maturity groupings based on the
remaining period at the reporting date to the contractual maturity date:
THE GROUP Less than Between 1 Between 2 Over
1 year and 2 years and 5 years 5 years
Rs000 Rs000 Rs000 Rs000
At December 31, 2010
Trade and other payables 670,025 - - -
Borrowings 1,681,741 557,736 1,408,504 3,125,705
Payable to related parties 78,221 - - -
Borrowings 3,065,776 318,442 953,607 3,079,750
Payable to related parties 14,223 1,572 1,478 -

THE COMPANY Less than Between 1 Between 2 Over
1 year and 2 years and 5 years 5 years
Rs000 Rs000 Rs000 Rs000
Borrowings 1,127,881 99,162 310,067 128,913
Payable to related parties 31,408 - - -
Borrowings 1,701,309 125,005 292,302 235,669
Payable to related parties 13,203 49,929 126,119 50,000
Notes to the
3 FINANCIAL RISK MANAGEMENT
3.1 Financial Risk Factors
The Groups activities expose it to a variety of
nancial risks; market risk (including currency risk,
price risk and cash ow and fair value interest rate
risk), credit risk and liquidity risk.
A description of the signicant risk factors is
given below together with the risk management
policies applicable.
(a) Market risk
(i) Currency risk
The Groups activities is mainly in the sugarcane
growing and milling, and electricity production.
The market strategy for the sale of raw and rened
sugar rests with the Mauritius Sugar Syndicate
(MSS) which is responsible for negotiating the
sale of the sugar production of the country with
potential buyers. There is a much wider and
diverse demand for white sugar in Europe which
mitigates the market risk. The Group invoices its
rened sugar in Euro to the MSS. For electricity
production, sale is made solely to the Central
Electricity Board (CEB) and is based on a Power
Purchase Agreement (PPA) for both energy
companies. Coal used for electricity production is
purchased in US dollar. However, any uctuation
in foreign currency is passed over to the CEB per
the PPA.
At December 31, 2010, if the Rupee had
weakened/strenghthened by 5% against the US
Dollar and the Euro with all other variable held
constant, post tax prot and equity would have
been Rs.184,000 (2009: Rs.132,000) higher/ lower
for the Company following changes in foreign
exchange gains/losses on translation of US Dollar
and Euro denominated cash balances.
At December 31, 2010, if the Rupee had weakened/
strenghthened by 5% against the US Dollar and
the Euro with all other variable held constant,
post tax prot would have been Rs.5,004,000
higher/lower (2009: Rs.24,894,000 lower/higher)
and equity Rs.20,920,000 lower/higher (2009:
Rs.24,984,000) for the Group following changes
in foreign exchange dierences on translation of
US Dollar and Euro denominated cash balances,
trade receivables and bank borrowings.
(ii) Price risk
The Group is exposed to equity securities price
risk because of investments in nancial assets
held by the Group and classied as available for-
sale.
To manage its price risk arising from investments
in equity securities, the Group diversies its
portfolio.
Sensitivity analysis
The table below summarises the impact of
increases/decreases in the fair value of the
investments on the Groups
equity. The analysis is based on the assumption
that the fair value had increased/decreased by
5%.
Impact on equity
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Categories of
investments:
Available-for-sale 8,933 3,047 2,721 2,158
(iii) Cash ow and fair value interest rate risk
As the Group has no signicant interest-bearing
assets, its income and operating cash ows are
substantially independent of changes in market
interest rates. The Groups interest rate risk arises
from borrowings. Borrowings issued at variable
rates expose the Group to cash ow interest-
rate risk. At December 31, 2010 if interest rates
on borrowings had been 50 basis points higher/
lower with all other variables held constant,
post-tax prot for the year would have been
Rs.4,055,000 (2009: Rs.5,008,000) lower/higher
for the Company and Rs.30,146,000 (2009:
Rs.33,116,000) lower/higher for the Group, mainly
as a result of higher/lower interest expense on
oating rate borrowings.
(b) Credit risk
The carrying amount of nancial assets
recorded in the nancial statements, which is
net of impairment losses, represents the groups
maximum exposure to credit risk without taking
account of the value of any collateral obtained.
Notes to the
89
Omnicane
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Annual Report 2010
3.4 Biological assets
The Group is exposed to uctuations in the price
of sugar and the incidence of exchange rate. The
risk aects both the crop proceeds and the fair
value of biological assets. The risk is not hedged.
4 CRITICAL ACCOUNTING ESTIMATES
AND JUDGEMENTS
In the application of the Groups accounting
policies, management is required to make
judgements, estimates and assumptions about
the carrying amounts of assets and liabilities
that are not readily apparent from other sources.
The estimates and associated assumptions are
based on historical experience and other factors
that are considered to be relevant. Actual results
may dier from these estimates. The estimates
and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates
are recognised in the period of the revision and
future periods if the revision aects both current
and future periods.
Key sources of estimation uncertainty
The key assumptions concerning the future, and
other key sources of estimation uncertainty at the
statement of nancial position date, that have a
signicant risk of causing a material adjustment
to the carrying amounts of assets and liabilities
within the next nancial year, are discussed
below.
(i) Estimated impairment of goodwill
Determining whether goodwill is impaired
requires an estimation of the value in use of the
cash-generating units to which goodwill has been
allocated. The value in use calculation requires
the entity to estimate the future cash ows
expected to arise from the cash-generating units
and a suitable discount rate in order to calculate
present value.
(ii) Consumable biological assets - Standing
Canes
The fair value of consumable biological assets has
been arrived at by discounting the present value
of expected net cash ows from standing canes at
the relevant market determined pre-tax rate.

The expected cash ows have been computed
by estimating the expected crop and the sugar
extraction rate and the forecasts of sugar prices
which will prevail in the coming year for standing
canes.
The harvesting costs and other direct expenses
are based on the yearly budgets of the Group.
(iii) Other investments - Available for sale
Level 3 Available-for-sale investments are stated at
cost since no reliable estimate could be obtained
to compute the fair value of these securities.
The directors used their judgement at year-
end and reviewed the carrying amount of these
investments and in their opinion there were no
material dierence between the carrying amount
and the fair value of the unquoted securities. To
their judgement, the carrying amount reect the
fair value of these investments.
(iv) Impairment of available-for-sale nancial
assets
The Group follow the guidance of IAS 39 on
determining when an investment is other-than-
temporarily impaired.
This determination requires signicant
judgement. In making this judgement, they
evaluate, among other factors, the duration and
extent to which the fair value of an investment
is less than its cost, and the nancial health
of and near-term business outlook for the
investee, including factors such as industry and
sector performance, changes in technology and
operational and nancing cash ow.
(v) IFRIC 4 - Whether arrangements contains a
lease
In preparing these nancial statements, the
Directors have considered the implications of
IFRIC 4 - Whether an arrangement contains
a lease and have concluded that the Power
Purchase Agreement of the energy subsidiaries
with the Central Electricity Board does meet the
criteria qualifying for a lease arrangement.
Notes to the
3 FINANCIAL RISK MANAGEMENT
(Continued)
3.2 Capital risk management
The Groups objective when managing capital is
to safeguard the entitys ability to continue as a
going concern so that it can continue to provide
returns for shareholders and benets for other
stakeholders.
The Group sets the amount of capital in
proportion to risk. The Group manages the capital
structure and makes adjustments to it in the light
of changes in economic conditions and the risk
characteristics of the underlying assets.
In order to maintain or adjust the capital
structure, the Group may adjust the amount of
dividends paid to shareholders, return capital to
shareholders or sell assets to reduce debt.
Consistently with others in the industry, the
Group monitors capital on the basis of the debt-
to-adjusted capital ratio. This ratio is calculated
as net debt over adjusted capital. Net debt
is calculated as total debt (as shown in the
statement of nancial position) less cash in hand
and at bank and short term deposits, adjusted
capital comprises all components of equity (i.e.
share capital, retained earnings and reserves).
3.3 Fair value estimation
The fair value of nancial instruments traded
in active markets is based on quoted market
prices at the end of the reporting period. A
market is regarded as active if quoted prices are
readily and regularly available from an exchange,
dealer, broker, industry group, pricing service, or
regulatory agency, and those prices represent
actual and regularly occurring market transactions
on an arms length basis. The quoted market price
used for nancial assets held by the Group is the
current bid price. These instruments are included
in level 1. Instruments included in level 1 comprise
primarily quoted equity investments classied as
trading securities or available-for-sale.
The fair value of nancial instruments that are not
traded in an active market is determined by using
valuation techniques. These valuation techniques
maximise the use of observable market data
where it is available and rely as little as possible on
specic estimates. If all signicant inputs required
to fair value an instrument are observable, the
instrument is included in level 2.
If one or more of the signicant inputs is not
based on observable market data, the instrument
is included in level 3.
Specic valuation techniques used to value
nancial instruments include:
Quoted market prices or dealer quotes for similar
instruments.
Other techniques, such as discounted cash ow
analysis, are used to determine fair value for the
remaining nancial instruments.
The nominal value less estimated credit adjust-
ments of trade receivables and payables are
assumed to approximate their fair values. The fair
value of nancial liabilities for disclosure purposes
is estimated by discounting the future contractual
cashows at the current market interest rate that
is available to the Group for similar nancial
instruments.
The debt-to-adjusted capital ratios at December 31, 2010 and December 31, 2009 were as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Total debt 6,773,686 7,417,575 1,666,023 2,354,285
Less: cash in hand and at bank (710,457) (810,737) (11,761) (12,860)
Net debt 6,063,229 6,606,838 1,654,262 883,977
Shareholders interests 5,570,195 5,822,316 4,947,781 5,094,136
Debt to adjusted capital ratio 1.09 1.13 0.33 0.17
Notes to the
91
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Annual Report 2010
Notes to the
5 TURNOVER
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Sugar, molasses and bagasse 695,036 826,409 229,111 272,808
Rened sugar 299,750 862 - -
Sugar insurance compensation 11,501 10,840 2,469 1,904
Electricity generation 2,418,601 2,274,955 - -
Agricultural diversication and others 54,816 79,001 44,169 44,214
3,479,704 3,192,067 275,749 318,926
6 OTHER OPERATING INCOME
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Prot on sale of plant and equipment 11,760 1,370 1,273 1,370
7 OPERATING PROFIT
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Operating prot is arrived at after
charging:
Depreciation on property, plant and equipment 399,073 344,434 17,777 21,576
Raw materials and consumables used 1,385,300 1,327,843 37,698 36,340
Employees remuneration (note 7(a)) 362,721 305,692 90,360 68,078
and crediting:
Prot on disposal of plant and equipment (11,760) (1,370) (1,273) (1,370)
(a) Employees remuneration
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Wages and salaries 330,002 278,393 80,817 61,617
Pension costs 32,719 27,299 9,543 6,461
362,721 305,692 90,360 68,078
4 CRITICAL ACCOUNTING ESTIMATES
AND JUDGEMENTS (Continued)
(vi) Recoverability of proceeds from sale of Land
At December 31, 2010, management considered
the recoverability of proceeds from sale of land
under Section 8 of the Land Acquisition Act.
Proceeds have been determined on a case by case
basis and take into account the location of the
land, surveyors report and previous sale of similar
properties in the vicinity.
(vii) Depreciation policies
Property, plant and equipment are depreciated
to their residual values over their estimated
useful lives. The residual value of an asset is the
estimated net amount that the Group would
currently obtain from the disposal of the asset
if the asset was already of the age and in the
condition expected at the end of its useful life.
The directors therefore make estimates based in
historical experience and use best judgement to
asses the useful lives of assets and to forecast the
expected residual values of the assets at the end
of their expected useful lives.
(viii) Pension benets
The present value of the pension obligations
depend on a number of factors that are
determined on an actuarial basis using a number
of assumptions. The assumptions used in
determining the net cost (income) for pensions
include the discount rate. Any changes in these
assumptions will impact the carrying amount of
pension obligations.
The Group determines the appropriate discount
rate at the end of each year. This is the interest
rate that should be used to determine the present
value of estimated future cash outows expected
to be required to settle the pension obligations.
In determining the appropriate discount rate, the
Group considers the interest rates of high- quality
corporate bonds that are denominated in the
currency in which the benets will be paid, and
that have terms to maturity approximating the
terms of the related pension liability.
Notes to the
93
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Annual Report 2010
Notes to the
11 TAXATION
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
(a) Charge for the year
Current tax on adjusted prot for the year
at 15% (2009: 15%) 569 2,141 - -
Alternative minimum tax 20,000 15,000 - -
Under/(over) provision in previous year 2,733 404 3,142 (88)
National Residential Property tax - 3,102 - 3,102
Deferred tax (note 21) 109,477 1,910 4,595 (5,131)
Tax charge/(credit) for the year 132,779 22,557 7,737 (2,117)
The Groups prot before tax diers from the theoretical amount that would arise using the Groups basic rate
of the group as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Prot before tax: 448,868 345,622 355,099 291,289
Tax calculated at current income tax rate
of 15% (2009: 15%) 67,330 51,843 53,265 43,693
Income not subject to tax (57,431) (61,783) (74,321) (50,636)
Expenses not deductible for tax purposes 58,503 14,093 25,651 1,812
Alternative Minimum Tax 20,000 15,000 - -
Under/(over) provision in previous year 2,733 404 3,142 (88)
Tax losses for which no deferred income tax asset
was recognised 41,644 (102) - -
Tax charge/(credit) for the year 132,779 22,557 7,737 (2,117)
Notes to the
7 OPERATING PROFIT (Continued)
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
(b) Expenses by nature
Depreciation on property, plant and equipment 399,073 344,434 17,777 21,576
Raw materials and consumables used 1,385,300 1,327,843 37,698 36,340
Employees remuneration 362,721 305,692 90,360 68,078
Other expenses 659,141 449,307 141,371 142,896
2,873,072 2,492,734 322,795 303,107
8 INVESTMENT INCOME
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Interest income 49,836 63,737 99,260 118,066
Dividend income 5,419 16,952 121,305 98,086
55,255 80,689 220,565 216,152
9 FINANCE COSTS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Foreign exchange transaction (gains)/losses (70,546) (14,954) 187 (2,026)
Interest expense:
- Bank overdrafts 123,295 165,545 89,737 103,427
- Bank and other loans 528,138 561,389 90,623 114,796
651,433 726,934 180,360 218,223
580,887 711,980 180,547 216,197
10 EXCEPTIONAL ITEMS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Prot on disposal of land 372,918 23,741 372,918 23,741
Prot on disposal of nancial assets - 262,055 - 262,055
372,918 285,796 372,918 285,796
95
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Annual Report 2010
Notes to the
13 PROPERTY, PLANT AND EQUIPMENT
(a) THE GROUP

Freehold Leasehold Power Plant Factory & Renery Plant and Work In
Land Buildings Properties & Equipment Equipment Plant Equipment Progress Total
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2010
Valuation / Cost 4,471,846 174,657 2,466 4,907,651 848,636 1,249,977 328,281 51,529 12,035,043
Accumulated
depreciation - (46,688) - (959,622) (99,982) (65,917) (237,667) - (1,409,876)
Net Book Value 4,471,846 127,969 2,466 3,948,029 748,654 1,184,060 90,614 51,529 10,625,167
2009
Valuation / Cost 4,515,460 175,346 2,466 4,844,787 837,911 1,196,544 361,509 21,185 11,955,208
Accumulated
depreciation - (43,078) - (706,348) (50,944) (4,842) (262,999) - (1,068,211)
Net Book Value 4,515,460 132,268 2,466 4,138,439 786,967 1,191,702 98,510 21,185 10,886,997
NET BOOK VALUES
Freehold Leasehold Power Plant Factory & Renery Plant and Work In
Land Buildings Properties & Equipment Equipment Plant Equipment Progress Total

2010
At January 1, 2010 4,515,460 132,268 2,466 4,138,439 786,967 1,191,702 98,510 21,185 10,886,997
Additions - 693 - 62,864 10,725 10,529 26,013 73,248 184,072
Disposals (43,614) - - - - - (3,215) - (46,829)
Depreciation - (7,431) - (253,274) (49,038) (61,075) (28,255) - (399,073)
Transfers - 2,439 - - - 42,904 (2,439) (42,904) -
At December 31, 2010 4,471,846 127,969 2,466 3,948,029 748,654 1,184,060 90,614 51,529 10,625,167
2009
At January 1, 2009 4,519,583 137,743 2,466 4,332,070 711,340 - 89,328 562,476 10,355,006
Additions - 2,206 - 57,458 17,485 769,892 40,576 736 888,353
Disposals (4,123) (988) - - (6,289) - (528) - (11,928)
Depreciation - (6,693) - (251,089) (50,944) (4,842) (30,866) - (344,434)
Transfers - - - - 115,375 426,652 - (542,027) -
At December 31, 2009 4,515,460 132,268 2,466 4,138,439 786,967 1,191,702 98,510 21,185 10,886,997
(i) Freehold Land has been revalued by Gexim Land Consultants, property valuers in December 2007 based on open market
value. The revaluation surplus, net of deferred tax, was credited to revaluation reserve.
(ii) Borrowings are secured by oating charges on the assets of the group, including property, plant and equipment. (note 28)
(iii) If the freehold land was stated on the historical cost basis, the amounts would be as follows:
2010 2009
Freehold Freehold
Land Land
Rs000 Rs000
Cost 364,187 375,068
Notes to the
11 TAXATION (Continued)
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
(b) Current tax liability/(asset)
At January 1, 16,610 12,894 3,102 6,971
Movement during the year:
Current 15% tax on the adjusted prot
for the year 569 2,141 - -
Alternative Minimum Tax 20,000 15,000 - -
Under /(over) provision in previous year 2,733 404 3,142 (88)
23,302 20,647 3,142 3,014
Less:
Alternative Minimum Tax paid
Tax deducted at source (153) - (153) -
Tax paid (20,155) (16,931) (6,244) (6,883)
(20,308) (16,931) (6,397) (6,883)
At December 31, 19,604 16,610 (153) 3,102
Disclosed as follows:
Current tax assets (153) (242) (153) -
Current tax liabilities 19,757 16,852 - 3,102
19,604 16,610 (153) 3,102
12 EARNINGS PER SHARE
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Basic earnings per share (Rs.) 3.71 3.86 5.18 4.38
Based on:
Prot after tax and minority interests (Rs000) 248,916 258,399 347,362 293,406
Number of ordinary shares in issue 67,012,404 67,012,404 67,012,404 67,012,404
97
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Annual Report 2010
Notes to the
14 INVESTMENT PROPERTIES
Freehold Land
THE GROUP & THE COMPANY 2010 2009
Rs000 Rs000
NET BOOK VALUE
At January 1 and December 31, 9,643 9,643
(b) Investment properties have been valued at fair value by Gexim Land Consultants, property valuers, in
December 2003.
The valuation was arrived by reference to market evidence of transaction prices for similar properties.
There was no rental income and no direct operating expenses attributable to the investment properties.
The directors are of the opinion that the carrying value reects the fair value at December 31, 2010.
15 INTANGIBLE ASSETS
a) THE GROUP
2010 2009
Software &
Professional Centralisation Management Rebranding
Fees Goodwill Costs Contracts Costs Total Total
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
COST
At January 1, 85,052 73,253 466,506 555,200 11,333 1,191,344 1,121,569
Additions 7 - 35,617 - - 35,624 69,775
At December 31, 85,059 73,253 502,123 555,200 11,333 1,226,968 1,191,344
AMORTISATION
At January 1, 14,115 - 12,432 16,784 567 43,898 22,087
Charge for the year 4,374 - - 16,784 204 21,362 21,811
At December 31, 18,489 - 12,432 33,568 771 65,260 43,898
CARRYING AMOUNT
At December 31, 66,570 73,253 489,691 521,632 10,562 1,161,708 1,147,446
Goodwill is allocated to the cash generating units. The carrying amount of goodwill had been allocated as
follows:

THE GROUP
2010 & 2009
Rs000
Floreal Ltd 427
Omnicane Agricultural Operations Ltd 20,152
Omnicane Milling Holdings (Britannia Highlands) Ltd 6,077
Omnicane Thermal Energy Holdings (St Aubin) Ltd 46,597
73,253
Impairment assessment has been performed comparing net realisable value, based on land development
potential and carrying amount. No impairment of goodwill is considered necessary.
Notes to the
13 PROPERTY, PLANT AND EQUIPMENT (Continued)
(b) THE COMPANY
Freehold Leasehold Plant and
Land Buildings Properties Equipment Total
Rs000 Rs000 Rs000 Rs000 Rs000
2010
Valuation / Cost 3,747,501 66,881 2,466 252,009 4,068,857
Accumulated depreciation - (14,816) - (188,141) (202,957)
Net Book Value 3,747,501 52,065 2,466 63,868 3,865,900
2009
Valuation / Cost 3,791,115 23,466 2,466 322,317 4,139,364
Accumulated depreciation - (14,000) - (221,774) (235,774)
Net Book Value 3,791,115 9,466 2,466 100,543 3,903,590
NET BOOK VALUES
Freehold Leasehold Plant and
Land Buildings Properties Equipment Total
Rs000 Rs000 Rs000 Rs000 Rs000
2010
At January 1, 2010 3,791,115 9,466 2,466 100,543 3,903,590
Additions - 10,988 - 15,747 26,735
Disposals (43,614) - - (3,034) (46,648)
Depreciation - (1,175) - (16,602) (17,777)
Transfer - 32,786 - (32,786) -
At December 31, 2010 3,747,501 52,065 2,466 63,868 3,865,900
2009
At January 1, 2009 3,795,238 7,611 2,466 60,604 3,865,919
Additions - 2,206 - 61,164 63,370
Disposals (4,123) - - - (4,123)
Depreciation - (351) - (21,225) (21,576)
At December 31, 2009 3,791,115 9,466 2,466 100,543 3,903,590
(i) Freehold Land has been revalued by Gexim Land Consultants, property valuers in December 2007 based on
open market value. The revaluation surplus, net of deferred tax, was credited to revaluation reserve.
(ii) Borrowings are secured by oating charges on the assets of the group, including property, plant and
equipment. (note 28)
(iii) If the freehold land was stated on the historical cost basis, the amounts would be as follows:
2010 2009
Freehold Freehold
Land Land
Rs000 Rs000
Cost 199,707 210,588
99
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Annual Report 2010
Notes to the
16 INVESTMENT IN SUBSIDIARY COMPANIES (Continued)
(a) Subsidiaries of Omnicane Limited:
2010 & 2009
% Holding Amount
Held by
Type of Held other group
Company shares held Activity Directly companies Rs000
Direct Holding
. Omnicane Milling Holdings (Mon Trsor) Limited Ordinary Investment 80 - 118,242
. Omnicane Milling Holdings (Britannia Highlands) Ltd Ordinary Investment 80 - 272,036
. Floreal Limited Ordinary Investment 100 - 3,188
. FAW Investment Limited Ordinary Investment 100 - 148,206
. Exotic Exports Limited Ordinary Flower Export 100 - 642
. Omnicane Logistic Operations Limited Ordinary Transport 100 - 25
. Omnicane Thermal Energy Holdings (St Aubin) Ltd Ordinary Investment 100 - 287,271
. Omnicane Holdings (La Baraque) Thermal Energy Limited Ordinary Investment 100 - 535,221
1,364,831
Indirect Holding
. Omnicane Milling Operations Limited Ordinary Cane Milling &
Sugar rening - 80 390,888
. Omnicane Agricultural Operations Ltd Ordinary Sugar Growing - 100 10,400
. Omnicane Thermal Energy Operations (St Aubin) Limited Ordinary Energy - 60 153,000
. Omnicane Thermal Energy Operations (La Baraque) Limited Ordinary Energy - 60 456,600
1,010,888
(b) The nancial statements of all above subsidiaries, included in the consolidated nancial statements, are co-terminous with
those of the holding company. Except for FAW Investment Limited, which is incorporated in the Isle of Man, all the subsidiary
companies are incorporated in the Republic of Mauritius.
17 INVESTMENT IN ASSOCIATED COMPANIES
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
At January 1, 30,677 20,890 10,688 100
Additions - 10,588 - 10,588
Share of results after taxation (3,906) (788) - -
Movement in reserves - (13) - -
At December 31, 26,771 30,677 10,688 10,688
Notes to the
15 INTANGIBLE ASSETS (Continued)
(b) THE COMPANY
2010 2009
Rebranding Management
costs Contract Total Total
Rs000 Rs000 Rs000 Rs000
COST
At January 1, 1,038 219,500 220,538 219,500
Additions - - - 1,038
At December 31, 1,038 219,500 220,538 220,538
AMORTISATION
At January 1, 52 - 52 -
Charge for the year 52 - 52 52
At December 31, 104 - 104 52
NET BOOK VALUES
At December 31, 934 219,500 220,434 220,486
16 INVESTMENT IN SUBSIDIARY COMPANIES
THE COMPANY
2010 & 2009
Rs000
COST
At January 1, and December 31, 1,364,831
101
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Annual Report 2010
Notes to the
19 BEARER BIOLOGICAL ASSETS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
COST
At January 1, 353,546 331,310 271,459 260,965
Additions 42,619 43,574 32,251 31,832
Write o (34,744) (21,338) (22,220) (21,338)
At December 31, 361,421 353,546 281,490 271,459
AMORTISATION
At January 1, 175,508 153,199 133,858 121,031
Amortisation 45,475 43,647 35,537 34,165
Write o (34,744) (21,338) (22,220) (21,338)
At December 31, 186,239 175,508 147,175 133,858
NET BOOK VALUES 175,182 178,038 134,315 137,601
Bearer biological assets represent cane replantation expenditure that have an expected life cycle of 7 years as
they would normally generate 7 years of crop harvest.
In line with IAS 41 - Agriculture, the replantation costs are deferred and amortised over 7 years.
20 DEFERRED EXPENDITURE
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
VOLUNTARY RETIREMENT SCHEME COSTS
COST
At January 1, 167,380 162,983 146,506 142,112
Infrastructure and other social costs 72,030 4,397 61,041 4,394
At December 31, 239,410 167,380 207,547 146,506
AMORTISATION
At January 1, 140,629 135,260 124,346 119,897
Charge for the year 9,663 5,369 8,744 4,449
At December 31, 150,292 140,629 133,090 124,346
CARRYING AMOUNT
At December 31, 89,118 26,751 74,457 22,160
The Voluntary Retirement Scheme costs comprise of compensation payments, provision for land infrastructure
and other costs less refunds received from the Sugar Reform Trust (SRT). The net expenses are amortised over
a period of 7 years.
Notes to the
17 INVESTMENT IN ASSOCIATED COMPANIES (Continued)
The results of the following associated companies have been included in the consolidated nancial statements:
Year Country of Direct Indirect Prot/
Name end incorporation Interest Interest Assets Liabilities (Loss) Revenues
% % Rs000 Rs000 Rs000 Rs000
2010
Coal Terminal
(Management)
Co. Ltd December 31, Mauritius - 24.43 25,946 24,918 869 44,688
Copesud
(Mauritius) Lte December 31, Mauritius 25.00 - 120,119 98,473 (16,638) 111,403
146,065 123,391 (15,769) 156,091
2009
Coal Terminal
(Management)
Co. Ltd December 31, Mauritius - 24.43 48,870 48,711 809 44,308
Copesud
(Mauritius) Lte December 31, Mauritius 25.00 - 114,788 76,503 (4,423) 41,860
163,658 125,214 (3,614) 86,168
18 INVESTMENT IN FINANCIAL ASSETS
(i) Non-Current
2010 2009 2010 2009
Level 1 Level 2 Level 3 Total Total Level 1 Level 3 Total Total
AVAILABLE-FOR-SALE
At January 1, 52,274 578 8,092 60,944 298,074 35,166 7,989 43,155 287,052
Additions - 176 100 276 - - - - -
Disposal - - - - (255,024) - - - (255,024)
Increase in fair value 28,937 88,499 - 117,436 17,894 11,269 - 11,269 11,127
At December 31, 81,211 89,253 8,192 178,656 60,944 46,435 7,989 54,424 43,155
(ii) Level 3 investments are stated at cost since reliable fair values cannot be obtained. At the reporting date, the
Directors reviewed the carrying amount of investments and in their opinion, there is no objective evidence
that the investments are impaired.
103
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Annual Report 2010
Notes to the
21 DEFERRED INCOME TAXES (Continued)
(b) THE COMPANY
2010 2009
Rs000 Rs000
At January 1, 4,264 9,395
Charge to the income statement 4,595 (5,131)
Charge to other comprehensive income 337,455 -
At December 31, 346,314 4,264
Deferred tax assets and liabilities, deferred tax movement in the statement of comprehensive income and
other comprehensive income are attributable to the following items:
Movement in Movement in
statement of other At
At January 1, comprehensive comprehensive December 31,
2010 income income 2010
Rs000 Rs000 Rs000 Rs000
Deferred income tax liabilities
Biological assets 20,640 (478) - 20,162
Accumulated tax depreciation 660 1,707 - 2,367
VRS costs 3,324 7,845 - 11,169
Deferred tax on revaluation of
land (note 21(a)(i)) - - 337,455 337,455
24,624 9,074 337,455 371,153
Deferred income tax assets
Tax losses carried forward (10,993) (3,863) - (14,856)
Provision for infrastucture costs (7,392) 644 - (6,748)
Retirement benet obligations (1,975) (1,260) - (3,235)
(20,360) (4,479) - (24,839)
Net deferred income tax liability 4,264 4,595 337,455 346,314
22 INVENTORIES
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Spare parts and consumables
- Growing 12,277 12,109 12,277 12,109
- Milling 52,928 59,045 - -
- Energy production 383,162 207,787 - -
- Others 1,172 758 - -
Total 449,539 279,699 12,277 12,109
(i) The cost of inventories recognised as expense and included in operating expenses amounted to Rs.1,385,315,132
(2009: Rs.1,327,843,164) for the Group and Rs.37,698,143 (2009: Rs.36,340,784) for the Company.
(ii) Borrowings are secured by oating charges on the assets of the group, including inventories. (note 28).
Notes to the
21 DEFERRED INCOME TAXES
Deferred income taxes are calculated on all temporary dierences under the liability methods at 15% (2009:
15%).
Deferred income tax assets and liabilities are oset when the income taxes relate to the same scal authority.
(a) THE GROUP
The following amounts are shown in the statement of nancial position:
2010 2009
Rs000 Rs000
Deferred tax liabilities 475,591 25,479
Deferred tax assets (14,039) (94,902)
461,552 (69,423)
Movement in deferred income tax
2010 2009
Rs000 Rs000
At January 1, (69,423) (71,333)
Charge to the income statement 109,477 1,910
Charge to other comprehensive income 421,498 -
At December 31, 461,552 (69,423)
Deferred tax assets and liabilities, deferred tax movement in the statement of comprehensive income and
other comprehensive income are attributable to the following items:
Movement in Movement in
statement of other At
At January 1, comprehensive comprehensive December 31,
2010 income income 2010
Rs000 Rs000 Rs000 Rs000
Deferred income tax liabilities
Biological assets 20,640 (478) - 20,162
Accumulated tax depreciation 318,704 (11,955) - 306,749
VRS costs 3,324 7,845 - 11,169
Deferred tax on revaluation of
land (note 21(a)(i)) - - 421,498 421,498
342,668 (4,588) 421,498 759,578
Deferred income tax assets
Tax losses carried forward (393,892) 115,962 - (277,930)
Provision for infrastucture costs (7,392) 644 - (6,748)
Retirement benet obligations (10,807) (2,541) - (13,348)
(412,091) 114,065 - (298,026)
Net deferred income tax
(asset)/liability (69,423) 109,477 421,498 461,552
(i) Pursuant to the Finance Act 2010, gains from sale of immovable property are now subject to income tax.
Consequently a deferred tax liability has been recognised on revalued land classied as property, plant and
equipment. The adjustment has been recognised in other comprehensive income.
105
Omnicane
Omnicane
Annual Report 2010
Notes to the
25 TRADE AND OTHER RECEIVABLES (Continued)
Trade debtors represents mainly electricity and sugar proceeds receivable. The sugar proceeds receivable are
paid by the Mauritius Sugar Syndicate (MSS) as and when proceeds are received. Advances on sugar proceeds
are paid by the MSS on a weekly basis and the nal settlement for the crop year is made at latest in June of the
following year. Rened sugar become receivable as and when the Group invoices the MSS.
Electricity and rened sugar proceeds receivable are generally paid within one month.
The carrying amounts of trade and other receivables approximate their fair values and no impairment was
required.
Provision for impairment at December 31, 2010 was Rs.10,000,000 (2009: Rs.10,000,000) for the Group and the
Company. Provision for impairment represents receivables due for more than one year.
At December 31, 2010, other receivables of Rs.54,702,000 (2009: Rs.61,113,000) were past due for the Group
and the Company and no impairment was required.
The carrying amounts of the Groups trade and other receivables are denominated in the following currencies:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Mauritian Rupee 1,122,444 1,443,395 232,635 565,900
Euro 61,397 - - -
1,183,841 1,443,395 232,635 565,900
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable
mentioned above.
26 SHARE CAPITAL
THE GROUP &
THE COMPANY
2010 & 2009
Rs000
Issued and Fully paid
67,012,404 ordinary shares of Rs.7.50 each 502,593
Notes to the
23 CONSUMABLE BIOLOGICAL ASSETS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Standing canes (at fair value)
At January 1, 116,551 119,980 92,745 99,947
Loss in fair value (3,241) (3,429) (3,320) (7,202)
At December 31, 113,310 116,551 89,425 92,745
Consumable biological assets represent the fair value of standing canes. The fair value has been arrived at by
discounting the present value of expected net cash ows at the relevant market determined pre-tax rate. The
expected cash ows have been computed by estimating the expected crop, the sugar extraction rate and the
forecasts of sugar prices which will prevail in the coming year.
The harvesting costs and other direct costs are based on yearly budgets.
The principal assumptions used are:
2010 2009 2010 2009
Expected price of sugar per ton (Rs) 14,500 15,000 14,500 15,000
Expected sugar accruing (Tons) 17,500 20,336 13,912 16,073
Expected average extraction rate (%) 10.43 10.41 10.43 10.41
24 RECEIVABLE FROM RELATED PARTIES
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Holding company - 1,170 - 170
Subsidiary companies - - 1,183,388 1,252,427
Companies with common directors 21,173 35,456 21,173 36,455
Associated company 19,724 28,187 15,652 21,469
40,897 64,813 1,220,213 1,310,521
Receivable from related parties bear interest between 7.5% to 11% per annum (2009: 9.25% to 12%)
25 TRADE AND OTHER RECEIVABLES
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Trade receivables 848,576 562,965 76,755 87,722
Prepayments and other receivables 240,248 746,193 60,863 368,010
Land expenses deferred 95,017 134,237 95,017 110,168
1,183,841 1,443,395 232,635 565,900
107
Omnicane
Omnicane
Annual Report 2010
Notes to the
27 REVALUATION AND OTHER RESERVES (Continued)
Hedging Reserve
The hedging reserve comprises of the eective portion of the cumulative net change in the fair value of cash
ow hedging instruments related to the hedged transactions that have not yet occurred.
Modernisation and agricultural diversication Reserve
The modernisation and agricultural diversication reserve was created under the SIE Act 1988. Expenditure
qualifying for the criterias under the Act are transferred, if any, to retained earnings on a yearly basis.
28 BORROWINGS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Non-current
Bank loans (note 28(a)) 5,091,945 4,351,799 538,142 652,976
Current
Bank overdrafts (note 28 (b)) 1,099,532 1,985,266 997,475 1,203,088
Bank loans (note 28 (a)) 582,209 798,675 130,406 221,493
Other loans - 281,835 - 276,728
1,681,741 3,065,776 1,127,881 1,701,309
Total Borrowings 6,773,686 7,417,575 1,666,023 2,354,285
(a) Bank loans
The bank loans are secured by oating charges on the groups assets and bear interest at rates between
1.115% and 10.13% per annum.
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
The maturity of non-current bank loans are
as follows:
- After one year and before two years 557,736 318,442 99,162 125,005
- After two years and before ve years 1,408,504 953,607 310,067 292,302
- After ve years 3,125,705 3,079,750 128,913 235,669
5,091,945 4,351,799 538,142 652,976
(b) Bank overdrafts
The bank overdrafts are secured by oating charges on the groups assets. The rate of interest on bank
overdrafts varied between 5.75% and 10.13% during the year.
(c) All rupee denominated bank overdrafts and bank borrowings bear interest rates which can uctuate
anytime when the banks modify their Prime Lending rates based on the Bank of Mauritiuss Repo rate. Euro
denominated bank borrowings bear interest rates based on European Investment Bank and Euribor rates,
which can uctuate anytime.
Notes to the
27 REVALUATION AND OTHER RESERVES
(a) THE GROUP
Modernisation
Fair & agricultural
Revaluation Value Hedging diversication
Reserve Reserve Reserve Reserve Total
Rs000 Rs000 Rs000 Rs000 Rs000
At January 1, 2010 4,140,392 33,111 - 192,673 4,366,176
Gain on available-for-sale nancial
assets - 117,436 - - 117,436
Transfer to Retained Earnings (32,733) - - (5,218) (37,951)
Cash ow hedge - - (29,300) - (29,300)
Deferred tax on revaluation of land (421,498) - - - (421,498)
At December 31, 2010 3,686,161 150,547 (29,300) 187,455 3,994,863
At January 1, 2009 4,143,564 222,295 - 206,186 4,572,045
Fair value adjustment - (189,184) - - (189,184)
Transfer to Retained Earnings - - - (13,513) (13,513)
Release on sale of land (3,172) - - - (3,172)
At December 31, 2009 4,140,392 33,111 - 192,673 4,366,176
(a) THE COMPANY
Modernisation
Fair & agricultural
Revaluation Value diversication
Reserve Reserve Reserve Total
Rs000 Rs000 Rs000 Rs000
At January 1, 2010 3,580,527 16,544 192,673 3,789,744
Gain on available-for-sale
nancial assets - 11,269 - 11,269
Transfer to Retained Earnings (32,733) - (5,218) (37,951)
Deferred tax on revaluation of land (337,455) - - (337,455)
At December 31, 2010 3,210,339 27,813 187,455 3,425,607
At January 1, 2009 3,583,699 212,495 206,186 4,002,380
Fair value adjustment - (195,951) - (195,951)
Transfer to Retained Earnings - - (13,513) (13,513)
Release on sale of land (3,172) - - (3,172)
At December 31, 2009 3,580,527 16,544 192,673 3,789,744
Revaluation Reserve
The revaluation reserve relates to the surplus, net of deferred tax on revaluation of property, plant and
equipment.
Fair value Reserve
Fair value reserve comprises of the cumulative net change in the fair value of available-for-sale nancial assets
that has been recognised in other comprehensive income until the investments are derecognised.
109
Omnicane
Omnicane
Annual Report 2010
Notes to the
29 RETIREMENT BENEFIT OBLIGATIONS (Continued)
Dened benet plan
Sta are covered by a contributory Death and Retirement (dened benet) Scheme administered by the
Anglo-Mauritius Assurance Society Limited and by a contributory dened benet scheme (SIPF 2) managed
by the Sugar Industry Fund Board.
Other retirement benets
Other retirement benets relate to gratuities on death and retirement that are based on length of service and
salaries at the date of death or retirement.
(a) Dened benet plan
(i) The amounts recognised in statement of nancial position are as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Present value of funded obligations 182,918 180,831 92,272 86,536
Fair value of plan assets (141,312) (150,483) (68,318) (84,222)
41,606 30,348 23,954 2,314
Unrecognised actuarial losses (31,006) (15,392) (34,778) (17,746)
Liability in the statement of nancial position 10,600 14,956 (10,824) (15,432)
(ii) The movement in the present value of obligations for the year is as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
At January 1, 180,831 198,219 86,536 87,565
Current service cost 4,659 9,071 2,248 2,793
Interest cost 16,336 22,593 7,072 9,867
Actuarial losses/(gains) 11,037 (30,254) 15,133 (10,896)
Benets paid (35,759) (31,338) (23,309) (3,620)
Contribution from plan participants 2,029 - 808 827
Curtailments losses 3,784 12,540 3,784 -
At December 31, 182,917 180,831 92,272 86,536
(iii) The movement in the fair value of plan assets for the year is as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
At January 1, 150,483 131,632 84,222 75,459
Expected return on plan assets 14,694 15,328 7,295 8,625
Contributions from employer 15,090 8,578 1,807 1,855
Contributions from participants 2,029 - 808 827
Benets paid (35,759) (5,166) (23,309) (3,620)
Asset (loss)/gain (5,225) 111 (2,505) 1,076
At December 31, 141,312 150,483 68,318 84,222
Notes to the
28 BORROWINGS (Continued)
(d) The carrying amounts of the groups and the companys borrowings are denominated in the following
currencies:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Mauritian Rupee 6,255,186 6,917,061 1,666,023 2,354,285
Euro 518,500 500,514 - -
6,773,686 7,417,575 1,666,023 2,354,285
(e) The eective interest rates at the date of the statement of nancial position were as follows:
2010 2009
Rs Euro Rs Euro
GROUP % % % %
Bank overdrafts 5.75 - 7.50 N/A 8.13 - 10.13 N/A
Bank borrowings 8.375 - 9.45 1.115 8.50 - 10.13 4.00 - 4.50
Other loans N/A N/A 7.50 - 11.25 N/A

2010 2009
COMPANY Rs Rs
% %
Bank overdrafts 5.75 - 7.50 8.13 - 8.65
Bank borrowings 8.375 - 8.50 8.50 - 10.13
Other loans N/A 7.50 - 11.25
29 RETIREMENT BENEFIT OBLIGATIONS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Amounts recognised in the statement of
nancial position:
Dened benet plan 10,600 14,956 (10,824) (15,432)
Other retirement benets 78,388 71,036 32,393 28,597
88,988 85,992 21,569 13,165
Statement of comprehensive income charge:
Dened benet plan 10,734 32,405 6,415 5,532
Other retirement benets 9,553 47,435 4,392 3,930
20,287 79,840 10,807 9,462
Retirement benet obligations comprise mainly the groups and the companys pension scheme and other
post retirement benets.
111
Omnicane
Omnicane
Annual Report 2010
Notes to the
(viii) Expected contributions to post-employment benet plans for the year ending December 31, 2011 for the
Group and the Company are Rs.10,671,000 and Rs.1,952,000 respectively.
(ix) The principal actuarial assumptions used for accounting purposes were:
THE GROUP & THE COMPANY
2010 2009
% %
Discount rate 10.00 10.50
Expected return on plan assets 10.00 11.00
Future salary increases 8.00 6.00
Future pension increases 4.00 4.00
(b) Other retirement benets
(i) The amounts recognised in the statement of nancial position are as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Present value of unfunded obligations 80,712 64,726 35,419 27,754
Unrecognised actuarial (loss)/gain (2,324) 6,310 (3,026) 843
78,388 71,036 32,393 28,597
(ii) The movement in the present value of obligations for the year is as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
At January 1, 64,726 73,522 27,754 24,188
Interest cost 6,618 7,876 2,885 2,771
Benets paid (2,555) (51,415) (596) (191)
Actuarial gain/(loss) 8,473 (1,945) 3,869 (173)
Curtailments losses - 33,766 - -
At December 31, 80,712 64,726 35,419 27,754
(iii) The amounts recognised in statement of comprehensive income are as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Interest cost 6,618 7,876 2,885 2,771
Actuarial losses (161) (3,439) - -
Curtailments losses - 40,076 - -
Total, included in employee benet expense 9,907 47,435 4,392 3,930
Notes to the
(iv) The amounts recognised in statement of comprehensive income are as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Interest cost 16,336 22,593 7,072 9,867
Expected return on plan assets (14,694) (15,329) (7,295) (8,625)
Net actuarial gains recognised 649 5,180 606 1,497
Curtailments losses 3,784 12,540 3,784 -
Contribution by employees - (1,650) - -
Total, included in employee benet expense 10,734 32,405 6,415 5,532
Actual return on plan assets 9,468 9,851 4,790 9,701
(v) Liability movements in the statement of nancial positions:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
At January 1, 14,956 15,652 (15,432) (19,109)
Total expense as above 10,734 32,405 6,415 5,532
Contributions paid (15,090) (33,101) (1,807) (1,855)
At December 31, 10,600 14,956 (10,824) (15,432)
(vi) History of obligations, assets and experience adjustments:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Fair value of plan assets 141,312 150,484 68,318 84,222
Present value of dened benet obligation (182,918) (180,831) (92,272) (86,535)
Decit (41,606) (30,347) (23,954) (2,313)
Asset experience (losses)/gains (7,564) 28,805 (2,505) 1,076
(vii) Major asset categories as percentage of plan assets:
THE GROUP & THE COMPANY
2010 2009
% %
Local:
- Equities 29 27
- Property 25 25
- Fixed interest 22 25
Overseas:
- Equities 17 18
- Fixed interest 7 5
Total 100 100
113
Omnicane
Omnicane
Annual Report 2010
Notes to the
33 DIVIDENDS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Final proposed dividend of Rs.2.50
(2009: Rs.2.00) per share 167,531 134,024 167,531 134,024
34 OPERATING LEASE COMMITMENTS
Operating leases relate to lands leased from Government of Mauritius with lease terms of 99 years. Nothing
in the lease arrangements, due to expire in year 2061, provides for any possibility of cancellation. The leases
do not provide for renewal.
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Operating leases expensed during the year 719 1,518 145 815
At the reporting date the company has outstanding commitments under non-cancellable operating leases,
which fall due as follows:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
- Within one year 719 1,518 145 815
- Between two and ve years 2,918 2,500 579 280
- After ve years 38,850 47,000 1,560 1,490
42,487 51,018 2,284 2,585
35 CAPITAL COMMITMENTS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Capital expenditure approved by the Board:
- not contracted 128,207 92,261 4,807 3,723
- contracted 184,500 36,933 - 24,378
312,707 129,194 4,807 28,101
36 HOLDING COMPANY
The ultimate holding company is Omnicane Holding Limited, a company incorporated in Mauritius.
Notes to the
(iv) Liability movements in the statement of nancial position:
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
At January 1, 71,036 75,016 28,597 24,859
Total expense as above 9,907 47,435 4,392 3,930
Contributions paid (2,555) (51,415) (596) (192)
At December 31, 78,388 71,036 32,393 28,597
30 PAYABLE TO RELATED PARTIES
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Holding company 2,292 1,020 2,292 -
Subsidiary companies - - 9,014 -
Subsidiary of holding company 44,860 13,203 20,102 13,203
47,152 14,223 31,408 13,203
The carrying amounts of amounts payable to related parties approximate their fair values.
31 TRADE AND OTHER PAYABLES
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Trade payables 136,150 209,270 32,083 27,403
Other payables and accrued expenses 533,875 374,220 43,461 13,418
670,025 583,490 75,544 40,821
The carrying amounts of trade and other payables approximate their fair values.
32 PROVISIONS FOR VRS AND BLUE PRINT COSTS
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Infrastructure and social costs 272,037 337,719 44,986 49,289
Provisions for VRS and Blue print costs relate to future expenditure for land and infrastructure costs for
employees who opted for the VRS in case of Omnicane Limited and Omnicane Agricultural Operations Limited
and Blue Print and Early Retirement Scheme for Omnicane Milling Operations Limited.
115
Omnicane
Omnicane
Annual Report 2010
Notes to the
39 SEGMENT INFORMATION
The Group is organised into the following main business segments :
Sugar Energy Total
2010 2009 2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
Primary reporting format
- business segments
Segment revenue 1,061,103 917,113 2,418,601 2,274,954 3,479,704 3,192,067
Segment (loss)/prot (117,941) 6,732 733,092 690,542 615,151 697,274
Share of results of associates (3,906) (788)
Investment income 55,255 80,689
Amortisation of VRS costs (9,663) (5,369)
Exceptional items 372,918 285,796
Finance costs (580,887) (711,980)
Prot before tax 448,868 345,622
Taxation (132,779) (22,557)
Prot for the year 316,089 323,065
Non-controlling interests (67,173) (64,666)
Prot attributable to owners of the parent 248,916 258,399
Sugar Energy Total
2010 2009 2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
Segment assets 9,040,697 9,919,355 5,711,013 5,200,803 14,751,710 15,120,158
Associates 26,771 30,677
14,778,481 15,150,835
Segment liabilities 4,298,196 4,172,456 4,216,571 4,442,898 8,514,767 8,615,354
Owners interests 5,570,580 5,822,316
Non-controlling interests 693,134 713,165
14,778,481 15,150,835
Investment income 18,505 59,712 36,750 20,977 55,255 80,689
Interest expense 207,682 268,129 443,751 458,805 651,433 726,934
Capital expenditure 118,153 828,632 65,919 50,872 184,072 879,504
Depreciation 138,646 103,168 260,427 241,266 399,073 344,434
Notes to the
37 CONTINGENT LIABILITIES
A subsidiary has a court case against the Mauritius Revenue Authority (MRA) regarding capital allowances claimed in years
1999 to 2002 to which the MRA is not agreeable. The case is still pending as at date.
38 RELATED PARTY TRANSACTIONS
(a) THE GROUP
Sale of Sale/(Purchase) of Investment income/
investment supplies and services (expense) Amount due to Amount due from
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Holding company - - - - - - 119,983 95,172 - 1,170
Associated company - - 28,782 33,596 2,041 (849) - - 19,724 28,187
Subsidiary of
holding company - - (58,139) (46,942) - - 44,860 13,203 - -
Companies with
common directors - 310,000 - - - - - - 21,173 345,456
Total - 310,000 (29,357) (13,346) 2,041 (849) 164,843 108,375 40,897 374,813
The above transactions have been made at arms length, on normal commercial terms and in the normal course of business.
(b) THE COMPANY
Sale of Sale/(Purchase) of Investment income/
investment supplies and services (expense) Amount owed to Amount due from
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Holding company - - - - - - 119,983 94,152 - 170
Subsidiaries - - 47,230 48,239 96,572 115,957 9,014 - 1,183,388 1,252,427
Associated company - - 28,782 33,596 2,041 (849) - - 15,652 21,469
Subsidiary of
holding company - - (34,038) (31,067) - - 20,102 13,203 - -
Companies with
common directors - 310,000 - - - - - 276,728 21,173 346,455
Total - 310,000 41,974 50,768 98,613 115,108 149,099 384,083 1,220,213 1,620,521
The above transactions have been made at arms length, on normal commercial terms and in the normal course of business.
(i) KEY MANAGEMENT PERSONNEL COMPENSATION
2010 2009 2010 2009
Rs000 Rs000 Rs000 Rs000
Short-term benets 14,425 10,554 3,327 4,432
Post-employment benets 8,524 726 240 228
22,949 11,280 3,567 4,660
117
Omnicane
Omnicane
Annual Report 2010
Notice is hereby given that the 85
th
annual meeting of the members of the Company will be held in the conference
room of the Port-Louis City Club, 8
th
Floor, Anglo-Mauritius House, Adolphe de Plevitz Street, Port-Louis, on 29 June
2011 at 10.00hrs to transact the following business:
1 To consider and approve the Annual Report including the audited nancial statements for the year ended 31
December 2010.
2 to 5 To re-appoint as directors the following persons who retire by rotation in terms of Clause 20.5 of the
Constitution and, being eligible, oer themselves for re-election (as separate resolutions):
2 Mr Premsagar Bholah
3 Mr Jacques M. dUnienville
4 Mr Nelson Mirthil
5 Mr Anbanaden Veerasamy
6 To re-appoint Mr Hugues Maigrot as director to hold oce until the next annual meeting in accordance with
section 138(6) of the Companies Act 2001.
7 Dividends
To ratify the payment of the dividends of Rs 2.50 per share declared by the directors and paid on 25 March
2011.
8 Directors fees
To x the directors fees for the year ending 31 December 2011.
9 To take note of the automatic re-appointed of the auditors under Section 200 of the Companies Act 2001
and to authorise the Board to x their remuneration.
A member entitled to attend and vote is entitled to appoint a proxy to attend, speak and vote in his/her stead. The
proxy need not be a member of the Company but the proxy forms should reach the Companys registered oce, 7
th

Floor, Anglo-Mauritius House, Adolphe de Plevitz Street, Port-Louis not less than twenty four hours before the time
for holding the meeting.
By order of the Board
Eddie Ah Cham FCCA
for Omnicane Management & Consultancy Limited
Secretaries
18 May 2011
Notice of Meeting
to Shareholders
40 THREE YEAR FINANCIAL SUMMARY
THE GROUP
2010 2009 2008
Rs000 Rs000 Rs000
(a) Results
Turnover 3,479,704 3,192,067 460,515
Share of results of associates (3,906) (788) 23,578
Prot before taxation 448,868 345,622 315,212
Income tax expense (132,779) (22,557) 7,833
Prot for the year 316,089 323,065 323,045
Other comprehensive income for the year, net of tax (340,687) (189,184) (93,848)
Total comprehensive income for the year (24,598) 133,881 229,197
Prot attributable to:
- Owners of the parent 248,916 258,399 283,889
- Non-Controlling interests 67,173 64,666 39,156
316,089 323,065 323,045
Total comprehensive income attributable to:
- Owners of the parent (84,446) 69,215 190,041
- Non-Controlling interests 59,848 64,666 39,156
(24,598) 133,881 229,197
Earnings per share (Rs.) 3.71 3.86 4.24
(b) Statement of nancial position
ASSETS
Non-current assets 12,280,284 12,435,398 12,106,394
Current assets 2,498,197 2,715,437 2,521,189
Total assets 14,778,481 15,150,835 14,627,583
EQUITY AND LIABILITIES
Owners interests 5,570,580 5,822,316 5,890,482
Non-controlling interests 693,134 713,165 708,499
Total equity 6,263,714 6,535,481 6,598,981
LIABILITIES
Non-current liabilities 5,656,524 4,463,270 5,058,357
Current liabilities 2,858,243 4,152,084 2,970,245
Total liabilities 8,514,767 8,615,354 8,028,602
Total equity and liabilities 14,778,481 15,150,835 14,627,583
Notes to the

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