NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 10

10. INVESTMENT IN ASSOCIATES

  Group   Company  
  June
2016
R'000
  June
2015
R'000
  June
2016
R'000
  June
2015
R'000
 
Carrying value 24 477   14 873      

During the year a 26% interest was purchased in Activo Health (Pty) Ltd. The Group has significant influence over this entity.

At 30 June 2016, Invisible Card Company was fully impaired as the business is not trading.

During the 2015 financial year, AfroCentric Investment Corporation Limited’s shareholding decreased from 20.27% to 19.30%. Subsequently, management has made the decision to sell the Jasco Electronics Holdings Limited investment and was accordingly reclassified this investment to a non-current asset held for sale (refer to note 12). In the current financial year the sale has not materialised and the 19.30% investment in Jasco Electronics Holdings was reclassified to Financial assets at fair value through profit and loss (refer to note 9.11).

In the current year, only Activo Health (Pty) Ltd’s total aggregate assets, liabilities and results of operations are disclosed as it is the most significant associate.

In the prior year, the total aggregate assets, liabilities and results of operation of all associates were included.

  Group  
  June
2016
R'000
  June
2015
R'000
 
Non-current assets (excluding intangible assets) 20 832   25 601  
Intangible assets   10 359  
Current assets 110 015   17 802  
Total assets 130 847   53 762  
Non-current liabilities 74 918   27 732  
Current liabilities 36 957   10 808  
Total liabilities 111 875   38 540  
Total comprehensive income attributable to ordinary shareholders 7 479   14 540  
Net profit for the year 7 479   14 540  
Other comprehensive income    

  Group   Company  
  June 
2016 
R'000 
  June 
2015 
R'000 
  June 
2016 
R'000 
  June 
2015 
R'000 
 
Balance at the beginning of period 14 873     77 183     –     42 493    
Share of after taxation profit  10 118     19 037     –     –    
Dividends received  (4 112)    (19 570)    –     –    
Impairment of Invisible Card Company2  (5 359)    –     –     –    
Fair value of investment in associates1  –     –     –     (17 705)   
Impairment of Jasco1  –     (21 792)    –     –    
Purchase of Activo Health3  8 957     –     –     –    
Sale of 1% of AFA Botswana (Pty) Ltd  –     (292)    –     –    
Reclassification of Jasco Electronics Holdings Limited to non-current assets held for sale2  –     (24 788)    –     (24 788)   
Impairment of Afrocentric Health Solutions Limited  –     (14 905)    –     –    
Balance at the end of period  24 477     14 873     –     –   
Note 1: The investment in Jasco Electronics Holdings Limited was reclassified to a non-current asset held for sale in the prior year. Immediately before the reclassification to a non-current asset held for sale Jasco was impaired/ fair valued to its recoverable amount being the fair value as at 30 June 2015. In the current year it was reclassified from non- current asset held for sale to fair value through profit and loss as it no longer met some of the criteria as a non-current asset held for sale as disclosed in Note 9.10.
Note 2: At year end, Invisible Card Company (Pty) Ltd was fully impaired.
Note 3: Activo Health (Pty) Ltd was acquired during the year as part of the WAD acquisition to strategically align with the Groups integrated healthcare offering.

  Reporting
date
  Number of
shares held
  Percentage
Holdings
  Group carrying
amount
  Company carrying
amount
 
          June
2016
%
  June
2015
%
  June
2016
R'000
  June
2015
R'000
  June
2016
R'000
  June
2015
R'000
 
Directly held – listed                                
Jasco Electronics Holdings Limited 30 June   44 263 793   19.3   19.3          
Unlisted                                
Activo Health (Proprietary) Limited 28 February   26   26     16 436        
Associated Fund Administrators (Proprietary) Limited 30 September   24 000   24   24   8 041   8 800      
Invisible Card Company (Pty) Ltd * 30 June   30   40   40     6 073      
Afrocentric Health Solutions Limited (Kenya Investments) 31 December   26   26   26          
                  24 477   14 873      

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 and Activo Health (Proprietary) Limited, it has no influence in aligning their reporting dates with the Group’s.

* At year end, Invisible Card Company (Proprietary) Limited was fully impaired.

  1 July 2015
R ‘000
Opening
carrying
amount
  Share of after 
tax profit/ 
(losses) 
Fair value/ 
impairment 
Reclassification/
disposals/
acquisitions
Dividends 
received 
30 June 2016
R ‘000
Closing
carrying
amoun
 
Unlisted                
Activo Health (Proprietary) Limited    7 479  –  8 957 –  16 436   
Associated Fund Administrators (Proprietary) Limited  8 800    3 353  –  (4 112) 8 041   
Invisible Card Company (Pty) Ltd  6 073    (714) (5 359) –    
   14 873    10 118  (5 359) 8 957 (4 112) 24 477  

  Shares at cost   Equity profits   Carrying amount of
investment
 
  June
2016
R'000
  June
2015
R'000
  June 
2016 
R'000 
  June 
2015 
R'000 
  June
2016
R'000
  June
2015
R'000
 
Unlisted                        
Activo Health (Proprietary) Limited 8 957       7 479     –     16 436      
Associated Fund Administrators (Proprietary) Limited  523    523    7 518     8 277     8 041    8 800   
Invisible Card Company (Pty) Ltd**  6 346    6 346    (6 346)    (273)       6 073   
Afrocentric Health Solutions Limited (Kenya Investments)*  18 21     18 211    (18 211)    (18 211)         
   34 037    25 080    (9 560)    (10 207)    24 477    14 873  
* In 2015 AfroCentric Health Solutions Kenya Limited declared a dividend in specie to Medscheme Holdings (Pty) Ltd which represents the entire value of the investments in AfroCentric Health Solutions Kenya Limited, being the shares AAR Insurance holdings. In 2015, AfroCentric Health Solutions Limited was fully impaired.
** Invisible Card Company (Pty) Ltd was fully impaired at year-end.

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 10