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GROUP |
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2010 |
|
2009 |
| 11. |
Investment in associate |
Country |
Ownership |
|
Ownership |
| |
The Group has the following investment in an associate: |
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|
|
|
| |
TM Supermarkets (Pvt) Limited |
Zimbabwe |
25% |
|
25% |
| |
|
|
Rm |
|
Rm |
| |
At 1 March |
|
— |
|
— |
| |
Current share of profit |
|
— |
|
— |
| |
Impairment recognised |
|
— |
|
— |
| |
At 28 February |
|
— |
|
— |
| |
Comprising: |
|
|
|
|
| |
Cost of investment |
|
5.0 |
|
5.0 |
| |
Share of post-acquisition profits |
|
68.1 |
|
68.1 |
| |
Impairment recognised |
|
(73.1) |
|
(73.1) |
| |
Summary of financial information of TM Supermarkets (Pvt) Limited – presented in US dollars |
|
100% |
|
100% |
| |
|
|
US$m |
|
US$m |
| |
Assets |
|
24.5 |
|
13.3 |
| |
Liabilities |
|
20.6 |
|
6.2 |
| |
Equity – non-distributable reserves |
|
9.2 |
|
7.7 |
| |
– distributable reserves |
|
(5.3) |
|
(0.6) |
| |
Turnover |
|
148.4 |
|
15.2 |
| |
(Loss)/profit for the year |
|
(4.6) |
|
1.4 |
|
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An annual impairment review is performed on the Group’s investment in TM Supermakerts (Pvt) Limited. In Prior years this investment was fully impaired to a carrying value of Rnil, due to the uncertain economic, political and social climate in Zimbabwe and our inability to remit dividends from that country. There have been positive changes in Zimbabwe over the last year, with the coalition government bringing some stability, the dollarisation of the currency and the lowering of inflation. Our impairment review has taken into account these changes and we believe that the future prospects are certainly more positive. However, as the coalition government is still in its infancy and there is stillmuch change to come in Zimbabwe and our associate is currently making operating losses, we believe it to be inappropriate to consider reversing any of the impairment. We therefore continue to carry the investment at a value of Rnil. |