Annexure F: Interest in joint ventures

The Group has a 49.9% share in Adcock Ingram Limited (India) and a 50% share in National Renal Care Proprietary Limited. The Group’s interest in these entities is accounted for in the consolidated financial statements using the equity method. Summarised financial information of these joint ventures, based on IFRS and the reconciliation with the carrying amount of the investments in the Group are set out below:

1. ADCOCK INGRAM LIMITED (INDIA)

STATEMENT OF FINANCIAL POSITION

  2016
R’000		   2015
R’000		  
Property, plant and equipment 183 796   166 631  
Non-current assets 183 796   166 631  
Inventories 67 025   65 693  
Trade and other receivables 374 087   330 360  
Cash and cash equivalents 116 743   36 956  
Current assets 557 855   433 009  
Total assets 741 651   599 640  
Post-retirement medical liability 3 659   2 631  
Deferred tax 22 526   19 927  
Non-current liabilities 26 185   22 558  
Trade and other payables 40 663   85 359  
Provisions 1 205   1 041  
Taxation payable 210 763   146 418  
Current liabilities 252 631   232 818  
Total liabilities 278 816   255 376  
Equity 462 835   344 264  
Proportion of Group’s ownership 49.9%   49.9%  
Carrying amount of the investment 230 955   171 787  

STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June

Turnover 504 722   482 603  
Cost of sales (380 372)   (352 231)  
Gross profit 124 350   130 372  
Selling, distribution and marketing expenses (365)   (351)  
Fixed and administrative expenses 2 069   (7 417)  
Operating profit 126 054   122 604  
Finance income 2 071   872  
Finance costs (992)   (1 130)  
Profit before taxation 127 133   122 346  
Taxation (46 067)   (42 475)  
Profit for the year 81 066   79 871  
Group’s share of profit for the year 40 452   39 856  
Unearned income on inventory (7 000)   –  
Group’s share of profit for the year 33 452   39 856  
2. NATIONAL RENAL CARE PROPRIETARY LIMITED

STATEMENT OF FINANCIAL POSITION

  2016
R’000		   2015
R’000		  
Property, plant and equipment 122 492   93 157  
Loans receivable 33 266   33 266  
Investment in associate 15 407   10 744  
Deferred tax 14 658   11 777  
Non-current assets 185 823   148 944  
Inventories 20 265   17 820  
Trade and other receivables 52 856   65 769  
Cash and cash equivalents 160 700   128 103  
Current assets 233 821   211 692  
Total assets 419 644   360 636  
Trade and other payables 96 524   79 622  
Provisions 11 897   11 996  
Taxation payable 2 952   1 455  
Current liabilities 111 373   93 073  
Total liabilities 111 373   93 073  
Non-controlling interests 61 903   52 868  
Equity 246 368   214 695  
Proportion of Group’s ownership 50.0%   50.0%  
Carrying amount of the investment 123 184   107 348  

STATEMENT OF COMPREHENSIVE INCOME

  2016
R’000		   2015
R’000		  
Turnover 831 281   783 698  
Cost of sales (658 650)   (627 048)  
Gross profit 172 631   156 650  
Selling, distribution and marketing expenses (100 277)   (79 595)  
Fixed and administrative (expenses)/income (3 103)   328  
Operating profit 69 251   77 383  
Finance income 8 763   6 365  
Finance costs (144)   (219)  
Equity accounted earnings 4 925   3 052  
Profit before taxation 82 795   86 581  
Taxation (22 088)   (22 858)  
Profit for the year 60 707   63 723  
Less:        
Non-controlling interests (9 035)   (12 218)  
Profit attributable to owners of the parent 51 672   51 505  
Group’s share of profit for the year 25 836   25 752