NOTES TO THE FINANCIAL STATEMENTS | Note 16

16.

NON-CONTROLLING INTEREST

 
  
  Group  Company 
   2020 
R'000 		    2019 
R'000 		    2020 
R'000 		    2019 
R'000 		  
Balance at the beginning of the year  787 713     679 277     –     –    
Dividend distributions (Note 27) (43 900)    (10 341)    –     –    
Non-controlling interest on acquisition of subsidiaries      3 645     –     –    
Non-controlling interest on change of ownership without loss of control  3 566     –            
Share of net profit of subsidiaries  155 112     115 132     –     –    
  902 491     787 713     –     –    

Set out below is summarised financial information for ACT Healthcare Assets Proprietary Limited, a subsidiary with non-controlling interest that is material to the Group. The amounts disclosed are before inter-company eliminations.

  Group 
   June 2020 
R'000 		    June 2019 
R'000 		  
Summarised statement of financial position of ACT Healthcare Assets Proprietary Limited         
Current assets  922 086     1 070 842    
Current liabilities  677 811     808 217    
Current net assets  244 275     262 625    
Non-current assets  3 468 137     3 469 578    
Non-current liabilities  563 838     973 990    
Non-current net assets  2 904 299     2 495 588    
Net assets  3 148 574     2 758 213    
ACT Healthcare Assets Proprietary Limited contribution towards group accumulated non-controlling interest  902 491     787 713    
Summarised statement of comprehensive income         
Revenue  6 477 671     5 299 681    
Profit for the period  483 022     387 945    
Other comprehensive income  –     (4 041)   
Total comprehensive income  483 022     383 904    
ACT Healthcare Assets Proprietary Limited contribution towards group profit allocated to non-controlling interest  155 112     115 132    
ACT Healthcare Assets Proprietary Limited contribution towards group dividends paid to non-controlling interest  43 900     10 341    
Summarised cash flows         
Cash flows from operating activities  646 628     354 642    
Cash flows from investing activities  (558 724)    (906 524)   
Cash flows from financing activities  (166 758)    608 839    
Net (decrease)/increase in cash and cash equivalents  (78 854)    56 957    

Transactions with non-controlling interests

During the current period, Medscheme Mauritius Limited (MTIUS) and Medscheme Holdings Proprietary Limited (Medscheme) entered into transaction with Eagle Insurance Limited (MEI) for the acquisition of shares by MEI in MTUIS.

Prior to the transaction, Medscheme held 100% of the shares in MTIUS. On transaction date, MTIUS issued new shares for 15 million Mauritian Rupees, resulting in 30% of its shares being held by MEI.

Medscheme retained control of MTIUS after the transaction, holding 70% of the issued shares.

On transaction date, the group recognised an increase in non-controlling interests of R 3.7 million and a profit resulting from the dilution amounting to R1.9 million.

On 1 October 2019 the group acquired the remaining 17.2% in iThrive Business Solutions Group for R9.6 million.

The group recognised a decrease in non-controlling interests of R143 167 with a corresponding increase in equity attributable to owners of the parent.

The transactions listed above did not result in a loss of control and were therefore accounted for as equity transactions, with the resultant adjustments being recognised directly in equity.

The effect on total equity during the year is summarised as follows:

  iThrive 
Business 
Solutions 
R'000 		    Medscheme  Mauritius  Limited 
R'000 		    Total 
R'000 		   
Retained earnings  143     1 902     2 045    
Non-controlling interest  (143)    3 709     3 566    
Total equity  –     5 611     5 611    

NOTES TO THE FINANCIAL STATEMENTS | Note 16