NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 10

10. Investment in associates
  GROUP
June 2014
R'000		   GROUP
June 2013
R'000		   COMPANY
June 2014
R'000		   COMPANY
June 2013
R'000		  
Carrying value 77 183   42 484   42 493   35 967  

Jasco Electronics Holdings Limited is a listed entity with publicly traded shares. The Jasco share price of 96 cents on 30 June 2014 determined the revaluation in the company. The equity accounted earnings have been recognised in the Group financial statements.

The directly held associate, Jasco, operates in the electronics industry and all indirectly held associates operate in the healthcare industry. The total aggregate assets, liabilities and results of Jasco’s operations are summarised as follows:

  June 2014
R'000		   June 2013
R'000		  
Non-current assets (excluding intangible assets) 245 897   285 737  
Intangible assets 111 286   94 143  
Current assets 440 529   523 484  
Total assets 797 712   903 364  
Non-current liabilities 145 533   204 342  
Current liabilities 364 578   440 125  
Total liabilities 510 111   644 467  
Net (loss)/profit attributable to ordinary shareholders 13 840   (78 462)  

  GROUP
June 2014
R'000		   GROUP
June 2013
R'000		   COMPANY
June 2014
R'000		   COMPANY
June 2013
R'000		  
Balance at the beginning of period 42 484   86 765   35 967   59 946  
Share of after taxation (losses)/profit 4 341   (21 477)   –   –  
Dividends received (1 359)   (2 360)   –   –  
Reversal of impairment*** 3 720   7 253   –   –  
Fair value of investment in associate*** –   –   3 086   (23 979)  
Purchase of Afrocentric Health Solutions Limited (Kenya investment)** 18 211   –   –   –  
Purchase of Invisible Card Company* 6 346   –   –   –  
Increase in investment in Jasco 3 440   –   3 440   –  
Disposal of Tradebridge (Proprietary) Limited –   (22 977)   –   –  
Disposal of Agility Broker Services (Pty) Ltd –   (4 720)   –   –  
Balance at the end of period 77 183   42 484   42 493   35 967  
* The investment in the Invisible Card Company was acquired during the year. The initial shareholding was 30% and was subsequently increased to 40% during the year.
** This investment was acquired during the year. The investment represents a 26% shareholding.
*** The investment in Jasco was impaired during 2011 due to the Jasco share price devaluing during this year. In the company accounts, this investment was already measured at fair value. Following from equity accounting principles, an impairment charge was processed in the Group accounts as there was objective evidence of an impairment at that stage. Subsequent to the 2011 financial year, the Jasco share price has increased and the previous impairment charge has been reversed during the 2013 and 2014 financial years to the extent that the share price has recovered from 2011. The share price of Jasco Electronics was R0.9 at 30 June 2013 and R0.96 at 30 June 2014. The impairment losses will be reversed to the extent that the impairment charge was previously raised.

The following information relates to the Group’s and Company’s financial interest in associates:

  Reporting
date		 Number of
shares held		   Percentage holdings

 Group carrying amount Company carrying amount  
        June 2014   June 2013   June 2014
R'000		   June 2013
R'000		   June 2014
R'000		   June 2013
R'000		  
Directly held – listed                              
Jasco Electronics Holdings Limited 30 June 44 263 793   20.27   27.3   45 933   35 967   42 493   35 967  
Unlisted                              
Associated Fund Administrators Botswana (Proprietary) Limited 30 September 25 000   25   25   7 343   6 517   –   –  
Tradebridge (Proprietary) Limited 30 September –   –   28   –   –   –   –  
Medscheme EDI (Proprietary) Limited* 29 February 50   50   50   –   –   –   –  
Agility Broker Service (Proprietary) Limited 31 December –   –   25   –   –   –   –  
Invisible Card Company (Proprietary) Limited 30 June 30   40   –   6 178   –   –   –  
AfroCentric Health Solutions Limited (Kenya Investment) 31 December 1 054 054   26   –   17 729   –   –   –  
                77 183   42 484   42 493   35 967  
* Pending deregistration

All the above are incorporated in South Africa except for Associated Fund Administrators Botswana (Proprietary) Limited which is incorporated in Botswana and AfroCentric Health Solutions Limited which is incorporated in Kenya.

Due to the Group’s non-controlling interest in Associated Fund Administrators Botswana (Proprietary) Limited, it has no influence in aligning their reporting dates with the Group’s.

  1 July 2013
R’000		         30 June 2014
R’000		  
  Opening
carrying
amount		 Share of after
tax profits/
(losses)		 Fair
value gain		 Acquisitions Dividends
received		 Closing
carrying
amount		  
Directly held – listed              
Jasco Electronics Holdings Limited 35 967 2 806 3 720 3 440 – 45 933  
Unlisted              
Associated Fund Administrators Botswana (Proprietary) Limited 6 517 2 186 – – (1 360) 7 343  
Invisible Card Company – (168) – 6 346 – 6 178  
AfroCentric Health Solutions Kenya – (482) – 18 211 – 17 729  
  42 484 4 342 3 720 27 997 (1 360) 77 183  

  Shares at cost Equity profits Carrying amount of
investment		  
  June 2014
R'000		   June 2013
R'000		   June 2014
R'000		   June 2013
R'000		   June 2014
R'000		   June 2013
R'000		  
Directly held – listed                        
Jasco Electronic Holdings Limited 43 127   59 946   2 806   (23 979)   45 933   35 967  
Unlisted                        
Associated Fund Administrators Botswana (Proprietary) Limited 815   815   6 528   5 702   7 343   6 517  
Agility Broker Services (Proprietary) Limited –   –   –   –   –   –  
Invisible Card Company (Proprietary) Limited 6 346   –   (168)   –   6 178   –  
AfroCentric Health Solutions Kenya 18 211   –   (482)   –   17 729   –  
  68 499   60 761   8 684   (18 277)   77 183   42 484  

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 10