Annual

Naade Resorts Ltd Annual Report 2009
Naade kesorts Ltd lierre Simonet Street l|orea| Mauritius

1e|. +230 69S 9S00 lax. +230 697 5S00 Lmai|. adminnaiade.com www.naiade.com
Yes to Recycled Paper
The companies which comprise Groupe Mon Loisir are committed
to supporting the initiative of Developpement Durable. We have
therefore selected to use Cyclus paper - a 100% recycled product -
for all our Annual Reports.
Cyclus is manufactured by the Danish company Dalum Papir,
a recognised world leader in 100% recycled paper, represented by the
agency MWT in Mauritius. Dalum Papir guarantees that Cyclus is made
from recycled fibres sourced entirely from consumer waste paper.
Their production uses 120,000 metric tonnes of waste paper per year,
thus saving an equivalent tonnage of trees which would otherwise
have been felled to meet this requirement. Production of Cyclus is
achieved without recourse to chemicals harmful to the environment
and the product has been endorsed by major environmental agencies
the German Blue Angel and the Fleur Europenne.
Groupe Mon Loisir has set a wide ranging approach to improving
respect for the environment throughout the Group, reflected by
this decision to utilise only 100% recycled paper. Whilst in itself
this initiative may be seen as just a small step, we believe that great
changes and opportunities begin with small gestures - that is our
intention.
To conclude, borrowing a slogan from Dalum Papir:
Let the Paper Talk
Contents
Value Added Statement 4
Financial Highlights and Ratios 5
Board and Committees 6
Management and Administration 7
Group Structure 8-9
Chairmans Report 12-13
Managing Directors Report 16-17
Mission and Vision Statements 19
Corporate Social Responsibility 20-21
Corporate Governance Report 24-31
Core Values 32
Dear Shareholder,
Your Board of Directors is pleased to present the Annual Report
of Naade Resorts Ltd for the year ended 31
st
December 2009.
This report was approved by the Board of Directors on 30
th

March 2010.
Arnaud Lagesse Patrice Hardy
Chairman Managing Director
Naade Resorts Ltd and its Subsidiaries Annual Report 2009 1
2 Naade Resorts Ltd and its Subsidiaries Annual Report 2009
Realising our guests dreams is our Groups raison dtre.
We achieve this by creating, developing and providing
innovative, daring and excellent hospitality products
enhanced by quality service provided by devoted,
committed, highly trained, vibrant people, our key asset.
In so doing, we always strive to create and sustain
outstanding returns and value for our shareholders,
and to honour our social and environmental responsibilities
to the fullest.
Total Total
2009 2008
Rs000 Rs000
Revenue 2,390,338 2,470,551
Value Added Tax 280,682 280,703
Total revenue 2,671,020 2,751,254
Paid to suppliers for materials and services 1,155,834 1,147,671
Value added 1,515,186 1,603,583
Share of results of associates ( 173,236) ( 155,018)
Exceptional items - 300,884
Total wealth created 1,341,950 1,749,449
Distributed as follows:
Members of staff
Salaries and other benefits 822,658 769,104
Providers of capital
Dividends to ordinary shareholders 42,985 171,940
Interest paid on borrowings 324,539 195,983
(Loss)/Profit attributable to minority holders - ( 6,634)
367,524 361,289
Government and parastatal corporations
Value Added Tax 280,682 280,703
Income tax (Current and deferred) 2,409 7,266
Solidarity levy - 13,910
Environmental Protection fee 7,151 13,430
Licences, permits and levies 4,128 3,894
Lease costs 29,582 23,076
323,952 342,279
Reinvested in the Group to maintain and develop operations
Depreciation and amortisation 238,281 172,312
Retained profit/(loss) (410,465) 104,465
(172,184) 276,777
Total Wealth Distributed and Retained 1,341,950 1,749,449

62%
Members
of staff
28%
Providers
of capital
23%
Government and
parastatal corporations
-13%
Reinvested in the
group to maintain and
develop operations
Value Added Statements
Year ended 31 December 2009
Financial Highlights & Ratios
Naade Resorts Ltd and its subsidiaries
Income Statement
Year ended Year ended Year ended December 31, December 31,
December 31, December 31, December 31, 2006 2005
2009 2008 2007 Restated Restated
Rs000 Rs000 Rs000 Rs000 Rs000
Total Revenue 2,390,338 2,470,551 2,413,767 2,067,468 1,638,042
EBITDA 370,985 499,466 747,407 716,222 584,326
Depreciation and amortisation (238,281) (172,312) (139,980) (122,627) (110,860)
Operating Profit before finance charges 132,704 327,154 607,427 593,595 473,466
Finance charges (324,539) (195,983) (116,432) (102,356) (85,359)
Share of results in associated companies (173,236) (155,018) (38,797) 13,477 -
Exceptional item - 300,884 255,807 81,805 -
Profit before taxation (365,071) 277,037 708,005 586,521 388,107
Taxation (2,409) (7,266) (56,596) (68,128) (49,102)
Profit after taxation (367,480) 269,771 651,409 518,393 339,005
Minority interest - 6,634 (87,113) (7,704) (4,177)
Profit attributable to the Group (367,480) 276,405 564,296 510,689 334,828

Rs Rs Rs Rs Rs
(Loss)/Earnings per share (EPS) (4.27) 3.22 6.54 5.92 3.88
Dividends per share 0.50 2.00 3.00 2.40 1.80

Balance Sheets
Rs000 Rs000 Rs000 Rs000 Rs000
Total assets 8,806,031 9,290,734 5,886,350 3,811,400 3,858,392
Interest bearing debt 4,505,452 4,374,593 2,393,407 1,101,029 1,453,110
Borrowing excluding overdraft 4,056,080 3,773,077 2,136,128 959,951 1,314,027
Total equity 3,262,935 3,658,947 2,454,447 2,100,379 1,783,816
Net Assets per share 37.83 42.42 28.46 24.35 20.68

Financial Ratios
Operating Margin 6% 13% 25% 29% 29%
Interest Cover 0.41 1.67 5.22 5.80 5.55
Dividend Cover -8.54 1.61 2.18 2.47 2.16
Return on equity -11% 8% 23% 24% 19%
Return on assets -4% 3% 10% 13% 9%
Debt to equity 1.38 1.20 0.98 0.52 0.81

Board and Committees
Board of Directors
Directors Alternate Directors
Arnaud Lagesse (Chairman)
Patrice Hardy (Managing Director) Pascal Bertrand (appointed on 11.08.09)
Jean Claude Bga Virginie Corneillet
Virginie Corneillet Laurent de la Hogue (appointed on 11.08.09)
Jean de Fondaumire
Dsir Elliah Dev Poolovadoo (appointed on 11.08.09)
Alexis Harel Jean Raymond Harel
J. Cyril Lagesse Hugues Lagesse
Stphane Lagesse Amaury Lagesse
Jean Paul Chasteau de Balyon (appointed on 30.04.10)
Audit Committee Secretary
Alexis Harel (Chairman) Posidon Limite
Jean Claude Bga Per Sylvia Maigrot
Stphane Lagesse
Corporate Governance Committee
Alexis Harel (Chairman)
Virginie Corneillet
Patrice Hardy
Arnaud Lagesse
Remuneration Committee
Arnaud Lagesse (Chairman)
Jean de Fondaumire
Patrice Hardy

Executive Committee
Patrice Hardy Managing Director
Dsir Elliah Chief Financial Officer
Nicolas Autrey Group Human Resources Manager
Pascal Bertrand Group Operations Manager
Dev Poolovadoo Group Financial Controller
Sylvia Maigrot Group Company Secretary/
Corporate Affairs
Chief Internal Auditor
Ouma Cuniah
Hotel Managers
Sylvio Arlanda (General Manager) Le Tropical
Geoffroy de Geyer (General Manager) - Merville Beach
Brice Lunot (General Manager) Legends
Alain Bhoyroo (General Manager) Tamassa
Jean Pierre Auriol (General Manager) Les Pavillons
Michel Blanchi (General Manager) Beau Rivage
Mario de lEstrac (Manager) Ile des Deux Cocos
Dominik Ruhl (General Manager) Diva Maldives
Stephane Baras (Directeur Gnral) Grand Htel du
Lagon/Htel Le Rcif, Reunion Island
Registered Office
Pierre Simonet Street
Floral
Mauritius
Registry and Transfer Office
Posidon Limite
Pierre Simonet Street
Floral
Mauritius
Bankers
The Mauritius Commercial Bank Ltd
State Bank of Mauritius Ltd
Bank One Limited
Barclays Bank Plc
Standard Bank (Mauritius) Ltd
State Bank of India (Mauritius) Ltd
AfrAsia Bank Ltd
HSBC Limited (Mauritius, UK, Germany, Maldives)
Bank of Ceylan
Standard Bank of South Africa Limited
Banque Franaise Commerciale Ocan Indien
Banque de la Runion
MCB Seychelles
Auditor
Ernst & Young
Chartered Accountants
Legal Advisors
Clarel Benoit
Andr Robert
Notary
Jean Pierre Montocchio
Management and Administration
Naade Resorts Ltd (Holding)
Operating Le Tropical
Group Structure
as at 31 December 2009
Hotel Operator Subsidiary
Investment Company Associate
100% 100% 100%
100%
100% 100%
100%
100%
100%
100%
40%
100%
Naade Foundation
CSR
Naade Holidays
(Pty) Ltd
Tour Operator
Naade Holidays Ltd
Online Tour Operator
Holiday & Leisure
Resorts Limited
Operator - Merville Beach
Hotel & Legends
Merville Beach
Hotel Ltd
Merville Ltd
Property Owner -
Merville Beach Hotel
Posidon Limite
Management Company
Naade Resorts
Seychelles Ltd
NRTA Ltd
Training Academy
Ari Atoll
Investments Ltd
White Sands Resort
& Spa Pvt Ltd
Operator - Diva Maldives
Naade Resorts
Maldives Ltd
100% 100% 100%
100%
100%
100%
100%
50%
100%
53%
47%
100%
100%
99.81%
99.12%
Naade Resorts
(UK) Limited
London Office
Blue Bay Tokey Island
Limited
Operator - Ile des Deux
Cocos & Naade Boutiques
Beau Rivage Co Ltd
Operator - Beau Rivage
La Plantation Limited
Dormant
Les Pavillons
Resorts Ltd
Operator - Les Pavillons
LTK Ltd
FMM Lte
MSF Leisure
Company Ltd
Nautical Centre
Le Morne
Nreide Limited
Operator Tamassa
Ocanide Limited
SAS Htel
Prestige Runion
SAS Le Rcif
Operator -
Htel Le Rcif
SNC LHermitage
Property Owner -
Htel Le Rcif
SA Les Villas du Lagon
Operator -
Grand Htel du Lagon
SNC Saint Paul
Property Owner -
Grand Htel du Lagon
SA Socit Villages -
Htel de lOcan Indien
Dormant
At 6.30 a.m. three days a week, a motley band of fervent believers gather in earnest
on the beach of the Beau Rivage at Belle Mare to partake in a very special routine led
by a fervent believer-in-chief.
The routine is a series of specific exercises, including jogging, karate and tai chi; and
the believer-in-chief is none other than the luxury resorts General Manager, Michel
Blanchi, who introduced the practice at the Beau Rivage nearly two years ago.
Perhaps the most interesting aspect of the routine is that participation in it, which
must be outside the participants working hours, is entirely voluntary; and its adepts
come from right across the resorts personnel spectrum, regardless of gender, age
and status, not to mention physical shape. Indeed, participants exercise at their own
rhythm.
And the flow of positive energies is such that guests often ask to join in.
A hotel is a people business, and great hotels thrive on
exceptional personal dedication and teamwork. What
participants in our exercise routine learn above all is the
wonderful taste of freely made effort. With its profoundly
felt personal benefits of both mental and physical well-
being, coupled with its strong sense of community, our
routine is intended to help us know each other better, and
work together better. It breaks down barriers and builds
confidence and team spirit.
Michael Blanchi
General Manager Beau Rivage
It is with great pleasure that, on behalf of the Board of
Directors, I am submitting my report and the Groups
audited results for the year ended 31 December 2009.
Review of Activities and Results
The global financial crisis which affected the worlds
economies had an impact on tourist arrivals in two
out of three destinations in which we operate, namely
Mauritius, the Maldives and Runion Island. Tourist
arrivals in Mauritius in the year ended 31 December
2009 amounted to 871,356, compared with 930,456 in
the previous year, a drop of 6.4%. In the Maldives, tourist
arrivals for 2009 numbered 655,852, down by 4% from
683,012 in 2008. As regards Runion Island, the number
of tourists who visited the island was 421,900 in 2009,
6.4% more than in 2008. The performance of our hotels
was also affected by aggressive rate-discounting in the
market and the unfavourable exchange rate of the main
currencies vis--vis the Mauritian rupee.
Against this background, the Group posted a turnover
which, at Rs 2.4 billion, is almost at par with the
previous years. Operating profit amounted to Rs 133
million, against Rs 327 million for 2008, a decrease of
59%. Finance costs increased to Rs 325 million, 66%
higher than for 2008, mainly on account of borrowings
contracted to finance the redevelopment of Les Pavillons
in Mauritius and of Grand Htel du Lagon in Runion
Island. The share of loss of our two associates, Tamassa
in Mauritius and Diva in the Maldives, amounted to
Rs 173 million compared with Rs 155 million for the
previous year. The loss for the year amounted to Rs 367
million, against a profit of Rs 270 million for 2008 after
accounting for exceptional gains of Rs 300 million.
Restructuring Plan
The Board has approved a capital-restructuring plan
to put the Group on a strong footing. The salient
features of the plan, which has been agreed with the
Groups lead banks (Barclays Bank PLC, The Mauritius
Commercial Bank Ltd, and State Bank of Mauritius Ltd)
and with the Groups anchor shareholder, Compagnie
dInvestissement et de Dveloppement Lte (CIDL), are
summarised below:
Naade kesorts Ltd wi|| proceed with a rights issue
for a total consideration of Rs 450 million before 31
July 2010, subject to the approval of the relevant
authorities and of the Companys shareholders.
CIDL, the ultimate holding company, has agreed
to underwrite the proposed rights issue.
White Sands kesort and Spa (WSkS), the company
owning and operating Diva hotel, an associate
of NRL at 40%, in the Maldives, will carry out a
reorganisation of its capital followed by a rights
issue of USD 13 million to its shareholders. The
rights issue of WSRS will be underwritten by NRL
Chairmans Report
Dividend
Given the results achieved during the year and the
timid signs of recovery, the Board did not declare a final
dividend in December 2009. The total dividend for the
year therefore amounted to Rs 0.50 per share.
Projects
As mentioned in my report last year, all redevelopment
projects begun three years ago have now been
completed. The Board does not at this stage envisage
major capital expenditure on existing properties and the
focus for 2010 is on consolidating existing operations
and on increasing revenue.
Short-term Outlook
The present environment remains challenging given
the high level of last-minute bookings and promotional
offers in the market. Our performance will also depend
on the evolution of the rupee against the major
currencies.
The fundamentals of Naades hotels remain strong. Our
philosophy and operational strategies are positioning the
Group in anticipation of recovery in our source markets.
We are focusing on liquidity and top-line growth while
containing costs.
Appreciation
I would like to express the Boards thanks and appreciation
to our Managing Director and his management team as
well as to our employees for their hard work, motivation
and dedication.
I also express my gratitude to my colleagues of the
Board for their invaluable assistance and guidance.
Arnaud Lagesse
Chairman
30 March 2010
Chairmans Report (Continued)
and is subject to the approval of the shareholders
of WSRS. Once the rights issue and the capital
reorganisation of WSRS have been carried out,
WSRS will become a subsidiary of NRL.
1he Croup is a|so considering severa| other unding
alternatives to raise a net cash inflow of Rs 500
million by June 2011.
1he |ead ban|s have agreed to reschedu|e their
existing facilities over a longer period, under
defined terms and conditions.
The above restructuring plan represents a cash injection
of some Rs 1 billion into the Group by June 2011.
The directors are confident that the cash inflow and
the initiatives taken to strengthen management, to
improve sales and EBITDA margin and to recapitalise our
Maldivian operation will restore the Groups profitability.
All the terms and conditions of the rights issue are
contained in a prospectus which will be circulated
to shareholders.
Finance Costs
The financing of the redevelopment projects undertaken
three years ago (around Rs 5 billion), essentially by
bank borrowings, is having its effect on the Groups net
finance costs, which have increased by Rs 130 million.
The restructuring plan should put the company back
on a profitable trend and, in the future, financial costs
should not represent a unduly heavy strain on the Group
as long as revenue generated is at an acceptable level.
Borrowings
The total net interest-bearing debt at the end of
December 2009 amounted to Rs 4.5 billion, excluding
Diva and Tamassa. Once the capital reorganisation
of Diva in the Maldives has been carried out and the
restructuring plan has been implemented, Diva will
become a subsidiary of Naade. Borrowings at the end of
2010 will stand at around Rs 5.2 billion for the enlarged
Group, and the gearing ratio, which was 57% in 2009,
will grow to 58% but still be very healthy.
REVENUE (Rs million)
EMPLOYEES
SHAREHOLDERS FUND (Rs million)
OCCUPANCY RATE (%)
1,638
2005
1,894
1,784
2005
75
2,067
2006
1,972
2,100
2006
73
2,413
2007
2,607
2,454
2007
79
2,471
2008
2,785
3,659
2008
76
68
76
66
69
2,390
2009
2,597
2005 2005 2006 2006 2007 2007 2008 2008 2009 2009
3,263
2009
61 61
NRL Mauritius
Overview of the Tourism Industry in Countries where
Naade Operates
Mauritius
Tourist arrivals in the year 2009 decreased by 6.4%
to 871,356, from 930,456 in 2008. Arrivals from
Europe, which accounted for 66.5% of total tourist
arrivals, decreased by 4.7% to 579,509, from 608,358
in 2008. Arrivals from France, our leading market,
representing 31.6% of total tourist arrivals and 47.6%
of tourist arrivals from the European market, rose by
6.0% to attain 275,599 in 2009. However, there were
decreases in arrivals from the other major markets: the
United Kingdom (-5.5%), Italy (-14.6%) and Germany
(-16.6%).
At the end of December 2009, there were a total of 102
registered hotels in operation. The total room capacity
for these registered hotels was 11,456, down by 0.3%
from the previous year. In 2009, room occupancy for
the hotel industry averaged 61%, compared with 68%
in 2008.
Maldives
There were 655,852 visitor arrivals in the Maldives in
2009, a drop of 4% compared with 2008. The impact of
the global economic downturn was more pronounced in
the first half of the year, while the second half showed
signs of a rebound, reflecting the increasingly positive
prevailing sentiment in the global economy. European
tourists continued to account for the majority (70%)
of tourist arrivals in the Maldives, followed by Asian
tourists (24%). The remaining 6% of tourist arrivals
were from various other parts of the world.
The United Kingdom (UK), Italy and Germany were the
top three source markets. However, all three markets
registered negative growth compared with 2008,
reflecting the impact of the financial crisis.
At the end of 2009, there were a total of 96 resorts,
representing 20,634 beds, registered with the Ministry
of Tourism and Civil Aviation in the Maldives. New
international entrants into the market in the year
included such brands as Raffles, Shangri-La, The Regent,
Ritz-Carlton, Waldorf Astoria and Mandarin Oriental.
Runion Island
Tourist arrivals in Runion Island in 2009 amounted
to 421,900, up by 6.4% on 2008. Total receipts from
the tourism industry amounted to EUR 336.5 million,
down by 2% from 2008. The number of hotel rooms in
operation was around 2,000, almost the same as in the
previous year.
Review of Our Operations
Price cutting and the reduction in tourist arrivals
adversely affected our luxury resorts, whereas our three-
star hotels performed fairly well. It is also important to
note that, as a result of our ambitious redevelopment
plan undertaken three years ago, the profile of our
portfolio has changed, with 75% of our rooms in the
four- and five-star segments. Indeed, in 2009 we had
876 new rooms (representing 58% of the portfolio)
which were in either their first or their second year of
operation, and it normally takes two to three years for a
hotel to start making a profit. Furthermore, Beau Rivage
hotel was closed for five weeks for refurbishment of the
main pool and this affected occupancy prior to and
after the refurbishment works.
In the year under review, Naades hotels in Mauritius
achieved an occupancy of 61% overall, at par with the
industrys average but still 5% down on the previous
year. Total revenue per available room (REVPAR) was
Rs 1.9 million, down by 13% approximately from Rs 2.2
million the previous year. This drop was mainly due to
the reduction in tourist arrivals, heavy rate-discounting
in the market, and appreciation of the rupee.
Diva, formally White Sands Beach Resort & Spa, in
the Maldives, was officially opened on 1 November
2008 after a major redevelopment involving the
establishments upgrading from a three-star resort
to a five-star Luxury resort, at a total cost of USD 60
million. As a new entrant, in an economic environment
especially difficult for the luxury segment, Diva was
more adversely affected than longer-established hotels
in the Maldives. Its average room occupancy for the
year under review was 33% and its turnover amounted
to USD 17.5 million.
Managing Directors Report
Managing Directors Report (Continued)
The redevelopment of Grand Htel du Lagon in Runion
Island was completed in April 2009. Since the hotels
reopening, the feedback received from guests and the
professional trade has been very positive. The hotel
achieved an occupancy of 44% and a turnover of EUR
8 million for the year under review. As regards Htel
Le Rcif, its exclusivity contract with the tour operator
Nouvelles Frontires was terminated on 31 March
2009. The hotel is featured by all our tour operators
since 1 November 2009 and this should enable us to
increase the hotels rates as well as its occupancy. Htel
Le Rcif achieved an occupancy of 41% and a turnover
of EUR 4 million for the year under review.
Operating Costs
The year under review was very challenging, with a
steep decline in revenue. To mitigate the latters impact
on our bottom-line, Management took a number of
initiatives to control expenses across all operations
while maintaining the level of service to guests.
Excluding depreciation and amortisation, operating
costs increased by only 2.4%, with more rooms in
operations, in 2009 as compared with 2008.
Sales and Marketing
The Marketing function was restructured worldwide,
with added emphasis on communication and sales. A
number of contracts were signed with PR companies to
create events and communicate on our hotels. We also
recruited a Chief Sales and Marketing Officer who will
join our team in June 2010.
International Awards
Diva in the Maldives was rated the best hotel in the
Indian Ocean according to Cond Nast Travellers Hot
List 2009. It was also voted the best Asia romantic
hotel 2010 and the most luxurious getaway holiday by
Hideaways magazine. Grand Htel du Lagon in Runion
Island was recognised at the World Travel Awards 2009
in London as Runion Islands leading hotel.
Human Resources
Given the present worldwide economic crisis, it is of
utmost importance for the Group to manage its human
resources even better. To this effect, the challenge in
the year under review was to achieve optimum balance
between payroll costs and service levels.
We had to keep our HR structures as lean as possible,
particularly in our luxury resorts, which suffer the most
during such dire times. The HR-planning strategy for
those resorts was therefore to have an important
proportion of seasonal employees.
Despite the economic crisis, employee average turnover
per month was not as high as in previous years, mainly
because we did not suffer from the aggressive poaching
that prevailed previously, but also because our Team
Members in these uncertain times preferred not to take
unnecessary risks as regards their career. Moreover,
there was no major resort opening during 2009.
The Groups total headcount at 31 December 2009
was 2,597 (1,879 in Mauritius, 687 in our overseas
operations, and 31 in our representative offices abroad).
Corporate Social Responsibility
All activities undertaken during the year are reported
on pages 20 and 21.
Looking Forward
Looking forward, it is clear that 2010 will be yet another
challenging year, although it would seem that the
global economic crisis is nearing its end. We are
confident that we will bounce back in 2010, as we did in
the past, but still we have to be very cautious, as it will
take time for our rates to get back to pre-crisis levels.
In conclusion, I thank the Board, in particular the
Chairman, as well as my colleagues of the management
team, and I congratulate all Naade Resorts Team
Members for their continuing hard work, dedication
and professionalism.
Patrice Hardy
Managing Director
30 March 2010
Mission Statement

Naade Resorts is committed to realising our guests dreams.
We achieve this by developing and providing innovative, daring and excellent
hospitality products served by devoted, committed, highly trained, vibrant
people, our Key Asset.
In so doing, we always strive to create and sustain outstanding returns and value
for our shareholders, and to honour our social and environmental responsibilities
to the fullest.
2010 Vision Statement
We will achieve this through acquisitions, joint ventures and management
contracts.
We shall be recognized as a most respected business community leader,
continuously improving shareholder value and the welfare of our staff whilst
fulfilling our corporate social responsibility.
Cape Town, 14 May 2006
Corporate Social Responsibility
The year 2009 was yet another landmark in the history
of our Group in terms of social responsibility, with the
creation of Naade Foundation. This entity, dedicated
to actions on behalf of Naade Resorts Ltd, aims at
promoting:
socio-economic deve|opment, inc|uding poverty
alleviation and the promotion of gender and
human rights;
deve|opment in the ie|ds o hea|th, education and
training, leisure, and the environment;
deve|opment in the ie|d o intervention and
support during and in the aftermath of catastrophic
events.
Naade Foundation was incorporated on 18 December
2009 and was subsequently accredited by the National
Corporate Social Responsibility Committee on 23
December 2009. Former Senior Puisne Judge Robert
Anhee agreed to be the first chairman of the new
foundation.
Naade Resorts Ltd is committed to fully comply with
the new corporate-social-responsibility legislation
enacted by Parliament in 2009. However, this legislation
will not alter any CSR policy or practice of our Group, as
we have always favoured a generous social plan in our
strategy over the years. Naade Resorts Ltd will therefore
continue to play its role towards society, as it believes
that business and society are more interdependent
than ever before. It has always been and still is the firm
belief of our Group that tripartite relationships between
companies, society and the nation are an integral part
of business today.
Naade Resorts Ltd, through Naade Foundation, will
continue to promote education aimed at helping the
unprivileged, by virtue of a declared policy that is
different from the traditional concept of corporate
philanthropy. The Company acknowledges the
debt that it owes to the community within which it
operates as a stakeholder. It is also very committed
to partnership with social-action groups in providing
financial and other resources to support development
plans, especially among disadvantaged communities.
In 2009, despite the severe economic and financial crisis
which adversely affected the tourism industry, Naade
Resorts Ltd pursued its social-aid programme.
The Company continued its close partnerships with
NGOs in Grand Gaube, Baie du Tombeau, Roches
Noires and Mahbourg with a focus on the education
and training of young adolescents from vulnerable
groups. Successful work-attachment programmes were
implemented to give a first experience of work to the
adolescents.
In the Maldives, Diva became a leading sponsor of
FenMaaDhiguRan, the countrys first and largest
marine protected area (MPA). Diva was the first hotel
establishment located in the MPA to commit support,
through fundraising, to this pilot conservation initiative.
The hotel introduced a voluntary-tipping scheme
which enables its guests to contribute actively to the
conservation of whale-sharks and their habitat. The
introduction of this scheme also helps the MPA to
generate new business opportunities, education and
employment for the local community.
22 Naade Resorts Ltd and its Subsidiaries Annual Report 2009 22 Naade Resorts Ltd and its Subsidiaries Annual Report 2009
Company Constitution
A copy of the Companys Constitution is available upon
request at the registered office of the Company and is
available on the Companys Web site, www.naiade.com.
Shareholders may contact the Company Secretariat for
any information or clarification pertaining to any section
of the Constitution.
Shareholding
At 31 December 2009, the Companys share capital was
Rs 862,568,730 (86,256,873 shares of Rs 10 each) and
there were 2,810 shareholders (31.12.08: 2,377) on the
registry.
The number of shareholders has increased steadily
over the years since the Companys listing on the
Stock Exchange of Mauritius in November 2005 thus
showing a growing interest in the shares and affairs of
the Company.
The directors regard Compagnie dInvestissement
et de Dveloppement Lte (CIDL) as the Companys
ultimate holding company. As at 31 December 2009,
two directors, namely Messrs Arnaud Lagesse and J. Cyril
Lagesse, were common to the Company and CIDL.
Corporate Governance
3,000
2,500
2,000
1,500
1,000
500
0
Dec 05 Dec 06 Dec 07 Dec 08 Dec 09
Number of Shareholders
Corporate Governance (Continued)
The Companys shareholding profile as at 31 December 2009 was as follows:
Number of Number of Percentage
Defined Brackets Shareholders Shares Owned %
1-500 1,060 226,264 0.26
501-1,000 394 336,857 0.39
1,001-5,000 727 1,884,154 2.18
5,001-10,000 238 1,754,524 2.03
10,001-50,000 268 6,027,371 6.98
50,001-100,000 55 3,989,647 4.62
100,001-250,000 31 4,291,481 4.97
250,001-1,000,000 30 13,643,725 15.81
1,000,001-1,500,000 0 0 0
Over 1,500,000 7 54,102,850 62.72
2,810 86,256,873 100.00
Shareholders holding more than 5% of the Company at 31 December 2009
30.02% Compagnie dInvestissement et de Dvelopppement Lte
8.72% Compagnie dInvestissement Immobilier de Flacq Lte
8.55% The Anglo-Mauritius Assurance Ltd
7.82% Patrice Hardy
44.89% Other Shareholders
Share Price Information
At the time of this report, the share price of the Company
is around Rs 30 compared to Rs 26 at the same period
last year.
Communication, Investor Relations and Calendar of
Important Events
The Chairman and the Management of the Company
meet regularly with fund managers, institutional
investors and investment analysts in forums to discuss
the state of affairs of the Company and that of the
industry in general, within the parameters of the
Listing Rules and other applicable regulations. Any
figures or information presented to such forums are
simultaneously posted on the Companys Web site.
Furthermore, the Company communicates with
the broader investment community and with its
stakeholders via press releases and its quarterly finance
bulletin, Naade Finance.
Shareholders are invited to attend the Companys Annual
Meeting, which remains the ideal forum for discussions
with the directors and the management team.
Calendar
Publication of 1st-quarter results April
Publication of Annual Report June
Annual Meeting of Shareholders June
Publication of interim results July
Declaration/payment of
interim dividend (if applicable) July/August
Publication of 3rd-quarter results October
Declaration/payment of November/
final dividend (if applicable) December
Financial year-end December
Publication of abridged
end-of-year results March
Shareholders Agreement
The Company is aware of the existence of a share-
holders agreement, signed in September 2007 between
Compagnie dInvestissement et de Dveloppement
Li mi te (CI DL) and Forward I nvestment and
Development Enterprises Limited, both of Groupe Mon
Loisir, and The Anglo-Mauritius Assurance Society
Limited, which together hold 41.9% of the share capital
of the Company.
Summary of Shareholder Category
Number of Number of % of Total
Category of Shareholders Shareholders Shares Owned Issued Shares
Individuals 2,558 23,870,819 27.67
Insurance and assurance companies 27 9,427,754 10.93
Pension and provident funds 24 1,147,741 1.33
Investment and trust companies 3 4,857,891 5.63
Other corporate bodies 198 46,952,668 54.43
2,810 86,256,873 100.00
Shareholders Agreement (Continued)
This agreement, which is mainly a working arrangement
between the shareholders mentioned above, takes
into account the interest of all shareholders under the
Companies Act 2001 and the principles of good corporate
governance. It makes provision for the management of
Naade Resorts Ltd and lays down procedures for key
decisions, the administration and constitution of the
Board and committees of the Board, dividend policy,
retention and disposal of shares, and pre-emption rights.
Management Agreement
Posidon Limite, a 100% subsidiary of Naade Resorts
Ltd, provides to the Company, its other subsidiaries
and associated companies a range of management,
administrative, secretarial, financial, marketing and
communication services.
Dividend Policy
Subject to internal cash-flow requirements and the
need for future capital investments, it is the Companys
policy to declare 50% dividends out of profits available
for distribution, in accordance with the Companies Act
2001 and International Financial Reporting Standards.
The Audit Committee and the Board ensure that the
Company satisfies the solvency test at each dividend
declaration.
As explained by the Chairman, given the results achieved
during the year and the timid signs of recovery, the
Board did not declare a final dividend in December 2009.
Summary of dividends per share paid over the past five
years
Year Interim Final Total
2005 0.60 1.20 1.80
2006 0.60 1.80 2.40
2007 1.00 2.00 3.00
2008 1.00 1.00 2.00
2009 0.50 nil 0.50
Board of Directors
During the year ended 31 December 2009, there was
no change in the composition of the Board, which
remained a unitary Board of ten directors, composed of
two executive, six non-executive and two independent
directors.
In line with the Shareholders Agreement mentioned
above, the Chairman was reappointed in December 2009
for a two-year term of office.
Mr Jean Paul Chasteau de Balyon was appointed as
director in replacement of Mr Louis Rivalland on 30 April
2010. His election will be submitted to the forthcoming
annual general meeting together with the proposed
re-election of Mr J. Cyril Lagesse as a director, under
section 138(6) of the Companies Act 2001, and that of
Mr Alexis Harel who retires by rotation and offers himself
for reappointment, in line with the recommendations
of the Corporate Governance Committee, which also
serves as the Nomination Committee. The profiles of the
above-named directors are given on pages 99 and 100
of the Report, together with those of the other directors
and the alternate directors.
The table below sets out the directors respective
category, direct and indirect interests and number
of other directorships in listed companies as at 31
December 2009:
Direct Indirect Number of
Category Shares Interest Interest Other
% % Directorships
in Listed
Directors Companies
Jean-Claude Bga NED 178,276 0.21 - 1
Virginie Corneillet NED 102,901 0.12 - -
Jean de Fondaumire INED - - - -
Dsir Elliah ED 855,766 0.99 - -
Patrice Hardy ED 6,790,171 7.87 - -
Alexis Harel INED 17,500 0.02 - 2
Arnaud Lagesse NICB 14,035 0.01 0.57 9
J. Cyril Lagesse NED 90,570 0.11 - 14
Stphane Lagesse NED 81,297 0.09 - -
Louis Rivalland INED - - - 7
Alternate Directors
Pascal Bertrand - - - - -
Jean-Paul Chasteau de Balyon - - - - -
Laurent de la Hogue - 25,000 0.02 - -
Jean-Raymond Harel - 177,421 0.20 - -
Amaury Lagesse - 20,933 0.02 - -
Hugues Lagesse - - - 0.10 1
Dev Poolovadoo - 536,947 0.62 - -
None of the directors holds any direct interest in the subsidiaries of the Company.
ED Executive director
INED Independent non-executive director
NED Non-executive director
NICB Non-independent Chairperson of the Board
The directors endeavour to follow the principles of the
Model Code for Securities Transactions by Directors
of Listed Companies as detailed in Appendix 6 of the
Mauritius Stock Exchange Listing Rules 2000, and
disclose any transaction in the shares of the Company
as applicable.
Furthermore, the Corporate Governance Committee
introduced in October 2009 a trading-disclosure
guideline for a more user-friendly approach to the Model
Code and its day-to-day implementation.
The Company keeps an Interests Register in accordance
with the Companies Act 2001 and an Insiders Register
pursuant to the Securities Act 2005, and the registers are
regularly updated with the information submitted by the
directors and/or other insiders as applicable.
Board Activity during the Year
The Board met six times in 2009 (individual attendance
by directors is detailed below) for the purpose of
considering and approving, among other things:
audited and quarter|y accounts and re|evant
publications
dec|aration o interim dividend
inancing o Liva and 1amassa
cash-|ow situation, debt-reschedu|ing and
refinancing
orecasts, three-year business p|ans and budgets
|easeho|d situation
appointment o a|ternate directors
renewa| o Chairman's and committee chairmen's
and members mandates
reports rom the Audit, Corporate Covernance and
Remuneration committees
Decisions were also taken by way of written resolutions
signed by all the directors.
Board Charter and Directors Charter
The Board and Directors charters are updated regularly
in step with new amendments to the relevant legislation
and with dispositions such as the trading-disclosure
guideline mentioned above, taken to improve the
Companys governance principles and practice. All
directors appreciate that these charters have been
customised for the Company and, while providing
adequate guidelines, are not exhaustive as to their duties
and responsibilities.
Committees of the Board
The composition of the Audit, Remuneration and
Corporate Governance committees was maintained
throughout 2009. The Board has renewed the mandates
of the Audit and Remuneration committees members,
subject to their reappointment as directors of the
Company at the Annual Meeting of Shareholders as and
when their reappointments fall due.
However, at time of printing this report, Mr Louis
Rivalland had tendered his resignation as director of the
Company and thus will have to be replaced on the Audit
and Remuneration Committees subsequently.
Audit Committee
At a Board meeting held in December 2009, the
directors reappointed Mr Alexis Harel as chairman of
the Audit Committee, and Messrs Jean-Claude Bga,
Stphane Lagesse and Louis Rivalland as members of
the committee, for three years. The latter having in the
meantime tendered his resignation, he will be replaced
shortly.
During the year under review, share dealings by directors were as follows:
Number of Shares Number of Shares
Acquired/Purchased/Sold Purchased/Sold
Directly Indirectly
Dsir Elliah (258,000) -
Alexis Harel 10,000 -
Hugues Lagesse (500) -
Dev Poolovadoo (66,000) -
Board of Directors (Continued)
During the year under review, the committee met six
times and the external auditors, Messrs Ernst & Young,
attended two of these meetings to discuss the 2008 final
audit report and management letters and the planning
of the 2009 audit.
Committees of the Board (Continued)
Audit Committee (Continued)
The committee is satisfied that it has discharged its
responsibilities for the year in compliance with its
charter. During the year, it also considered, among other
things, the risk-review update, financial information
to be published by the Board, forecasts and budgets,
accounting policies, insurance covers, an IT audit,
benchmarking, loan conversions, and revaluation of
assets.
Remuneration Committee
Messrs Jean de Fondaumire and Louis Rivalland
were reappointed as members of the Remuneration
Committee for three years, but the latter having since
tendered his resignation; he will be replaced on the
committee at the next Board meeting.
The committee met twice in 2009, to consider and
approve nominations as well as to review packages for
the Groups Team Members in Mauritius and overseas.
Corporate Governance Committee
The committee had three meetings in 2009, to finalise
implementation of the Groups policy on whistle-
blowing and to consider, among other things, the
Groups environmental audit, the 2008 Annual Report,
the Board Appraisal report, succession-planning, legal
cases, charters updates, and director dealings (as detailed
above).
Attendance Report (Year 2009)
Committees
Corporate
Board Audit Remuneration Governance
Number of meetings held 6 6 2 3
Jean-Claude Bga 5 6
Virginie Corneillet 5 3
Dsir Elliah 6
Jean de Fondaumire 5 2
Patrice Hardy 6 2 3
Alexis Harel 6 6 3
Arnaud Lagesse 6 2 3
J. Cyril Lagesse 5
Stphane Lagesse 6 5
Louis Rivalland 6 5 1
In Attendance
Managing Director 5
Chief Financial Officer 6
External auditors 2
Related Party Transactions
Please refer to pages 85 to 86, in Notes to the Financial
Statements
Employee Share Option Plan
The Company does not have an employee share-option
plan.
Donations
The Company has a policy of channelling all requests for
donations (excluding political donations, which are dealt
with directly by the Board) and other forms of social
assistance through its Corporate Social Responsibility
function, duly incorporated under Naade Foundation
since December 2009.
Please refer to page 38, in Other Statutory Disclosures,
for information regarding political and other donations.
Policies and Practices as regards Corporate Social
Responsibility
Please refer to pages 20 and 21.
Sylvia Maigrot
Posidon Limite
Secretary
May 2010
Company Secretary
All directors have access to the advice and services of
the Company Secretary, who is responsible to the Board
for ensuring that Board procedures are followed and that
applicable rules and regulations are complied with.
Independent Professional Advice
The directors may also seek independent professional
advice at the Companys expense as and when required.
Identification of Key Risks and Brief on How Managed
Please refer to pages 37 to 38, in Other Statutory
Disclosures.
Financial Risk Factors
Please refer to page 38, in Other Statutory Disclosures.
Statement of Remuneration Philosophy
Each director is paid a fixed annual fee of Rs 100,000,
plus an attendance fee of Rs 10,000 per Board meeting.
The Board has entrusted to the Remuneration
Committee the responsibility of determining adequate
remuneration for executive directors as well as senior
managers, taking into consideration market conditions,
available benchmarking, and the Companys results.
Please refer to page 36, in Other Statutory Disclosures,
for aggregate remuneration figures and bands, and
details of earnings from subsidiaries.
Our Core Values

Guests
We put our guests at the forefront of everything with a view to always being
their first choice and making their happiness, desires and feeling of peace our
philosophy.
People
We commit ourselves to ensure that our people grow within the business.
We believe in their loyalty, team spirit and legitimate aspirations for always being
successful.
Leadership
We demonstrate decisive leadership and fast management reaction to secure
maximum advantages of changes.
Responsibility
We recognise and always honour the investment of our stakeholders, as well
as our ethical and social responsibilities. We respect our environment and its
protection is part of our prime duties.
Excellence
We compete on quality, service and value. We build our competitive edge
on superior innovation and customer responsiveness. We have a passion for
excellence and our intention is to simply be the best.
Financial Statements
Naade Resorts Ltd Annual Report 2009
Contents
Other Statutory Disclosures 34-39
Secretarys Certificate 41
External Auditors Report 42
Statement of Financial Position 43
Statements of Comprehensive Income 44
Statements of Changes in Equity 45
Statement of Cash Flows 46
Notes to the Financial Statements 47-98
Directors Profiles 99-100
Senior Management Profiles 101
Directorship 102-103
Notice of Annual Meeting 104
Naade kesorts Ltd lierre Simonet Street l|orea| Mauritius
1e|. +230 69S 9S00 lax. +230 697 5S00 Lmai|. adminnaiade.com www.naiade.com
Naade Resorts Ltd and its Subsidiaries Annual Report 2009 33 Naade Resorts Ltd and its Subsidiaries Annual Report 2009 33
Group Rs. 2,471 million). The Companys loss for the year was
Rs. 45.9 million (2008: profit of Rs. 617 million). The Group
reported a loss after tax of Rs. 367 million for the year ended
31 December 2009 (2008: profit of Rs. 270 million).
Dividends
The Board of Directors has recommended a dividend of Rs 0.50
per share (2008: Rs 2.00 per share).
Main Activities
The main activities of Naade Resorts Ltd and its subsidiaries
consist of operating and managing hotels.
Results for the year
The Statements of comprehensive income for the year ended
December 31, 2009 are shown on page 44. Revenue of the
Company and the Group was Rs. 184 million and Rs. 2,390
million respectively (2008: Company Rs. 789 million and the
Other Statutory Disclosures
(Pursuant to Section 221 of the Companies Act 2001)
Directors
The names of the Directors of Naade Resorts Ltd and its subsidiaries, as at 31st December 2009, were as follows:
Companies Directors
Naade Resorts Ltd Arnaud Lagesse (Chairman)
Patrice Hardy (Managing Director)
Jean Claude Bga
Virginie Corneillet
Jean de Fondaumire
Dsir Elliah
Alexis Harel
J. Cyril Lagesse
Stphane Lagesse
Louis Rivalland
Pascal Bertrand (appointed as alternate to Patrice Hardy on 11.08.09)
Jean Paul Chasteau de Balyon (alternate to Louis Rivalland)
Virginie Corneillet (alternate to Jean Claude Bga)
Laurent de la Hogue (appointed as alternate to Virginie Corneillet on 11.08.09)
Jean-Raymond Harel (alternate to Alexis Harel)
Amaury Lagesse (alternate to Stphane Lagesse)
Hugues Lagesse (alternate to J. Cyril Lagesse)
Dev Poolovadoo (appointed as alternate to Dsir Elliah on 11.08.09)
Bertrand E. Piat (resigned as alternate to Dsir Elliah on 08.05.09)
Companies Directors
Beau Rivage Co Ltd Arnaud Lagesse
Blue Bay Tokey Dsir Elliah
Island Limited Patrice Hardy
Les Pavillons Alexis Harel
Resorts Ltd
La Plantation Limited
Posidon Limite Arnaud Lagesse
Patrice Hardy
Alexis Harel
FMM Lte Arnaud Lagesse
LTK Ltd Dsir Elliah
MSF Leisure Company Ltd Patrice Hardy
Bertrand E. Piat (resigned on 08.05.09)

NRTA Ltd Nicolas Autrey (appointed on 08.05.09)
Pascal Bertrand
Dsir Elliah
Sylvia Maigrot
Bertrand E. Piat (resigned as chairman and director on 08.05.09)
Naade Resorts Patrice Hardy
(UK) Limited Dsir Elliah
Arnaud Lagesse (appointed on 08.05.09)
Bertrand E. Piat (resigned on 08.05.09)
Naade Resorts Patrice Hardy
Seychelles Ltd Peter Burian
Dsir Elliah
Richard Ramasawmy
Marie Antoinette Mein (Alternate to Peter Burian)
Naade Holidays Patrice Hardy
(Pty) Ltd Dsir Elliah
Sydney Pierre (appointed on 20.01.09)
Jean Franois Rivire (resigned on 20.01.09)
Naade Holidays Ltd Patrice Hardy (Appointed on 09.02.09)
Dsir Elliah (Appointed on 09.02.09)
Naade Foundation Patrice Hardy (Appointed on 21.12.09)
Dsir Elliah (Appointed on 21.12.09)
Pascal Bertrand (Appointed on 21.12.09)
Holiday & Leisure Arnaud Lagesse
Resorts Limited Patrice Hardy
Dsir Elliah
Other Statutory Disclosures (Continued)
Companies Directors
Merville Beach Arnaud Lagesse
Hotel Ltd Dsir Elliah
Merville Limited Patrice Hardy
Htel Prestige Runion Patrice Hardy (Prsident)
Les Villas du Lagon SA Patrice Hardy ( Prsident )
Stphane Baras (Administrateur and Directeur Gnral Dlgu)
Pascal Bertrand (Appointed as Administrateur on 20.04.09)
Dsir Elliah (Administrateur)
Bertrand E. Piat (Resigned as Administrateur on 20.04.09)
Socit Villages Htels Patrice Hardy ( Prsident )
De lOcan Indien Stphane Baras (Administrateur and Directeur Gnral Dlgu)
Pascal Bertrand (Appointed as Administrateur on 20.04.09)
Dsir Elliah (Administrateur)
Bertrand E. Piat (Resigned as Administrateur on 20.04.09)
Le Rcif SAS Patrice Hardy (Prsident)
Stphane Baras (Directeur Gnral)
Directors Service Contract
The executive directors of the Group have no service contract.
Their employment is only subject to the Employment Rights
Act and has no expiry date. The non-executive directors hold
no service contract with the Company and its subsidiaries.
Indemnity Insurance
During the current year, the directors of Naade Resorts Ltd
and its subsidiaries have renewed the indemnity insurance
cover for directors/officers liability. There is no indemnity
insurance for other employees.
Contract of Significance
During the year under review, there was no contract of
significance.
Directors Share Interest
The interests of the directors in the securities of the company,
as at 31st December 2009, are disclosed at page 28.
Directors Remuneration and Benefits
Remuneration and benefits (including bonuses and commissions) received and receivable from the company and related corporations
were as follows:
Year ended 31.12.09 Year ended 31.12.08
Executive Non- Executive Executive Non- Executive
Rs Rs Rs Rs
The Company 345,000 1,515,000 325,000 1,420,000
Subsidiary
Poseidon Limite (note (a)) 29,970,000 - 31,650,000 -
(a) Includes alternate directors
Risk Management
The Board has overall responsibility for risk management and
internal control. Risks faced by the Group have been analysed
in a risk analysis document, together with the probability of
occurrence and the potential severity of loss. This document
is reviewed annually by management, the Audit Committee,
the internal auditor and the external auditor.
The Group is subject to a number of risks and uncertainties
which are handled by the Management Team during their
day-to-day operations. The most important ones are listed
down below:
|ndustry rsk
The volume of tourist arrivals in Mauritius and the other
destinations where the Group operates may not grow to
match with the expansion in room capacity brought about
by the construction of new hotels. This imbalance may create
competitive pressure on Naade.
The Group is however well experienced and positioned in the
market and is able to compete effectively in the main markets.
Global competition remains intense the more so in the
current economic environment and Mauritius faces active
competition from other destinations. The Group is diversifying
geographically and now operates nine hotels on three islands
in the Indian Ocean.
o|tca| rsk
The role of Government is crucial in the development of the
tourism industry. Political stability, allocation of adequate
funds for the promotion of this sector and a well balanced
approach to the opening of air access are very important
factors to be considered.
Market ksk
The economic recession or downturn in Europe which remains
the Groups main market could adversely and materially affect
the Groups operations and financial condition.
Managements strategy is to diversify its client base so as to
be less dependant on one market.
|nsurance ksk
In order to protect itself against any liability falling outside
the scope of coverage or against any inadequate coverage,
the Group reviews its insurance policies on a yearly basis with
expert advisors.
Statement of Directors responsibilities in respect of the
preparation of Financial Statements and Internal Control
and Risk Management
Financial Statements
For the year under review, the directors report that:
UIFGJOBODJBMTUBUFNFOUTGBJSMZQSFTFOUUIFTUBUFPGBGGBJSTPG
the Group and the Company as at the end of the financial
period and the result of operations and cash flows for that
period;
UIF FYUFSOBM BVEJUPST BSF SFTQPOTJCMF GPS SFQPSUJOH PO
whether the financial statements are fairly presented;
BEFRVBUF BDDPVOUJOH SFDPSET BOE BO FGGFDUJWF TZTUFN
of internal controls and risk management have been
maintained;
BQQSPQSJBUFBDDPVOUJOHQPMJDJFTTVQQPSUFECZSFBTPOBCMF
and prudent judgments and estimates have been used
consistently;
UIFGJOBODJBMTUBUFNFOUTIBWFCFFOQSFQBSFEJOBDDPSEBODF
and comply with International Financial Reporting
Standards;
UIFGJOBODJBMTUBUFNFOUTIBWFCFFOQSFQBSFEPOUIFHPJOH
concern basis;
UIFZBSFSFTQPOTJCMFGPSTBGFHVBSEJOHUIFBTTFUTPGUIF
Group and of the Company; and
UIFZIBWFUBLFOSFBTPOBCMFTUFQTGPSUIFQSFWFOUJPOBOE
detection of fraud and other irregularities
Internal Control
The directors are responsible for ensuring that the whole
system of controls, financial and otherwise, that are in place
is sufficient and appropriate in order to enable the company to
carry on business in an orderly and efficient manner.
The company has an established internal audit function.
The department consists of a Chief Internal Auditor who
reports to the Managing Director and the Audit Committee.
Internal audit reports are issued both to the Executive team
members and to the Audit Committee.
The purpose, authority and responsibility of the Internal Audit
Department are set out in an Internal Audit Charter which has
been approved by the Audit Committee.
The role of the department is to assess and provide an
independent assurance on the adequacy of the internal control,
risk management and governance processes of the company.
The Chief Internal Auditor has access to all the company
records which are relevant to the performance of her duties.
Foreign Exchange risk
It is the practice in the hospitality industry to fix tariffs
yearly in advance. In order to achieve stability of tariffs in
the overseas markets and as a hedge against a fall in the
value of the Mauritian Rupee, contracts with tour operators
are denominated in the major international currencies of the
markets in which the foreign tour operators belong.
A significant number of contracts is therefore denominated in
Euros, Pounds Sterling and US Dollars and invoices are raised
in these currencies. While protecting the enterprise against any
fall in the parity of the Mauritian Rupee, it exposes it to a fall
in revenue should the Rupee appreciate against one or more
of the international currencies.
Liquidity risk
Prudent liquidity risk management implies maintaining
sufficient cash and the availability of funding through an
adequate amount of committed credit facilities. The Group
aims at maintaining flexibility in funding by keeping reliable
credit lines available.
Risk Management (Continued)
Inanca| ksks
The Groups activities expose it to a variety of financial risks.
A description of the significant risk factors is given below
together with the risk management policies applicable.
Credit risk
The Groups credit risk is primarily attributable to its trade
receivables. The amounts presented in the statement
of financial position are net of allowances for doubtful
receivables, estimated by the Groups management based on
prior experience and the current economic environment.
The Group has no significant concentration of credit risk, with
exposure spread over a large number of counterparties and
customers. The Group has policies in place to ensure that
sales of products and services are made to clients with an
appropriate credit history. Adequate insurance cover has also
been taken against this risk.
Interest rate risk
The Group is exposed to interest rate risk as it borrows at
variable rates (PLR, LIBOR, EURIBOR and OAT) + a margin. Any
increase in these rates may negatively affect results.
Donations
Donations were as follows:
2009 2008
o|tca| Others Political Others
Rs000 Rs000 Rs000 Rs000
The Company - 57,635 - 54,870
The Subsidiaries
Les Pavillons Resorts Ltd - 277,984 - 231,151
Beau Rivage Co Ltd - 155,096 - 886,866
Posidon Limite 300,000 111,334 300,000 176,627
Holiday & Leisure Resorts Limited - 220,984 - 1,036,290
Blue Bay Tokey Island Limited - - - 67,100
Auditors
The fees paid to the auditors, for audit and other services were:
THE GROUP THE COMPANY
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
(a) Ernst & Young
Audit services 1,631,000 1,450,000 238,000 200,000
Other services 418,000 505,000 23,000 -
Total 2,049,000 1,955,000 261,000 200,000

(b) Other Auditors
Audit services 1,251,616 1,172,000 - -
Other services - - - -
Total 1,251,616 1,172,000 - -
By Order of the Board
A|exs Hare| atrce Hardy
Chairman of Audit Committee Managing Director
30 March 2010
Secretarys Certificate
We certify that, to the best of our knowledge and
belief, the Company has filed with the Registrar of
Companies, all such returns as are required of the
Company under the Companies Act 2001, in terms of
section 166(d).
Sylvia Maigrot
Posidon Limite
Secretary
30 March 2010
Auditors Report to the Members
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements on pages 43 to 98 give
a true and fair view of the financial position of the Company
and the Group as at December 31, 2009 and of their financial
performance and their cash flows for the year then ended in
accordance with International Financial Reporting Standards
and comply with the Companies Act 2001.
Other matter
This report, including the opinion, has been prepared for and
only for the Companys members, as a body, in accordance
with Section 205 of the Companies Act 2001 and for no other
purpose. We do not, in giving this opinion, accept or assume
responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come
save where expressly agreed by our prior consent in writing.
Report on Other Legal and Regulatory Requirements
Companies Act 2001
We have no relationship with or interests in the Company and
the Group other than in our capacity as auditors and dealings
with the Company and the Group in the ordinary course of
business.
We have obtained all the information and explanations we
have required.
In our opinion, proper accounting records have been kept by
the Company and the Group as far as it appears from our
examination of those records.
Ernst & Young Andre Lai Wan Loong,
Chartered Accountants A.C.A.
Ebne, Mauritius
31 March 2010
Report on the Financial Statements
We have audited the financial statements of Naade Resorts
Ltd (the Company) and its subsidiaries (together referred
to as the Group) on pages 43 to 98 which comprise the
statements of financial position as at December 31, 2009
and the statements of comprehensive income, statements of
changes in equity and statements of cash flows for the year
then ended and a summary of significant accounting policies
and other explanatory notes.
Directors Responsibility for the Financial Statements
The directors are responsible for the preparation and fair
presentation of these financial statements in accordance
with International Financial Reporting Standards and in
compliance with the requirements of the Companies Act
2001. This responsibility includes: designing, implementing
and maintaining internal control relevant to the preparation
and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error; selecting
and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those
Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors
judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the
auditors consider internal control relevant to the Companys
preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Companys internal control.
An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
estimates made by the directors, as well as evaluating the
overall presentation of the financial statements.
Statements of Financial Position as at December 31, 2009
Notes THE GROUP THE COMPANY
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Assets
Non-current assets
Property, plant and equipment 4 6,367,513 6,400,486 232,193 237,582
Intangible assets 5 425,274 415,370 871 1,361
Investment in subsidiary companies 6 - - 1,449,321 1,423,318
Investment in associated companies 7 187,139 218,676 - -
Available-for-sale investments 8 28,427 32,906 58 58
Non-current receivables 9 397,756 108,750 - -
Deferred tax assets 10 71,953 71,971 - -
Retirement benefit asset 11 4,528 2,256 - -
7,482,590 7,250,415 1,682,443 1,662,319
Current assets
Inventories 12 68,670 66,931 2,147 1,846
Trade and other receivables 13 1,130,284 1,687,162 2,039,332 2,087,428
Cash and short term deposits 26 (b) 124,487 286,226 69,076 40,985
1,323,441 2,040,319 2,110,555 2,130,259
Total Assets 8,806,031 9,290,734 3,792,998 3,792,578
Equity and Liabilities
Capital and reserves
Issued capital 14 862,568 862,568 862,568 862,568
Share premium 194,386 194,386 194,386 194,386
Treasury shares 14 (18,081) (18,081) (18,081) (18,081)
Other reserves 15 1,479,595 1,465,142 114,462 114,462
Retained earnings 744,467 1,154,932 360,734 449,635
Total equity 3,262,935 3,658,947 1,514,069 1,602,970
Non-current liabilities
Interest bearing loans and borrowings 16 3,046,922 2,613,324 336,558 155,135
Deferred tax liabilities 10 337,138 352,527 24,496 26,678
Retirement benefit obligations 11 24,483 20,032 585 462
3,408,543 2,985,883 361,639 182,275
Current liabilities
Interest bearing loans and borrowings 16 1,458,530 1,761,269 898,562 1,008,081
Trade and other payables 17 655,294 749,274 1,018,718 910,632
Current tax liabilities 18 20,729 49,391 10 2,650
Dividend proposed 19 - 85,970 - 85,970
2,134,553 2,645,904 1,917,290 2,007,333
Total liabilities 5,543,096 5,631,787 2,278,929 2,189,608
Total Equity and Liabilities 8,806,031 9,290,734 3,792,998 3,792,578
The notes set out on pages 47
to 98 form an integral part of
these financial statements.
Auditors report on page 42.
These financial statements have been approved for issue by the board of directors on 30 March 2010.
A|exs Hare| atrce Hardy
Chairman of Audit Committee Managing Director
Statements of Comprehensive Income - Year ended December 31, 2009
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Sale of goods and services 2,284,340 2,302,077 75,533 72,538
Finance revenue 20 38,080 20,043 108,054 115,996
Other operating income 67,918 148,431 - 600,013
Revenue 2,390,338 2,470,551 183,587 788,547
Direct costs 549,397 528,024 20,361 16,270
Employee benefits expense 21 822,658 769,104 18,343 17,656
Depreciation and amortisation 22 238,281 172,312 7,874 8,420
Other operating expenses 22 647,298 673,957 28,619 25,433
2,257,634 2,143,397 75,197 67,779
Operating profit 22 132,704 327,154 108,390 720,768
Finance costs 23 (324,539) (195,983) (156,369) (97,931)
Share of loss in associated companies 7 (173,236) (155,018) - -
Exceptional items 24 - 300,884 - -
(Loss)/roIt beIore tax (365,071) 277,037 (47,979) 622,837
Income tax expense/(credit) 18 2,409 7,266 (2,063) 5,767
(Loss)/roIt Ior the year (367,480) 269,771 (45,916) 617,070
Other Comprehensive income
Surplus on revaluation of property 4 - 1,294,351 - 118,209
Deferred tax on surplus on revaluation 10 - (153,220) - (17,631)
Exchange difference on translation
of foreign operations 15 (11,308) 39,387 - -
Net (loss)/gain on fair value of available-
for-sale investment 8 (3,095) 4,795 - -
Gain realised on disposal of available-for-
sale-investment 15 (544) - - -
Cash flow hedge movement 15 28,900 (37,000) - -
Hedge reserve realised on repayment of loans 15 500 - - -
Share of reserve in associated companies 7 - 57,487 - -
14,453 1,205,800 - 100,578
Total Comprehensive income for the year (353,027) 1,475,571 (45,916) 717,648
Loss/profit for the year is attributable to:
- Equity holders of the parent (367,480) 276,405
- Minority interests - (6,634)
(367,480) 269,771
(Loss)/Earnings per share (Basic and Diluted (Rs)) 25 (4.27) 3.22
The notes set out on pages 47 to 98 form an integral part of these financial statements.
Statements of Changes In Equity - Year ended December 31, 2009
THE GROUP
Attributable to the equity holders of the parent
Issued Share Treasury Other Retained Minority Total
share premium shares reserves earnings Total interests Equity
Notes (Note 14) (Note 14) (Note 15)
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At January 1, 2008 862,568 194,386 - 259,342 1,050,467 2,366,763 87,684 2,454,447
Other comprehensive
income for the year - - - 1,205,800 - 1,205,800 - 1,205,800
Profit for the year - - - - 276,405 276,405 (6,634) 269,771
Total comprehensive
income for the year - - - 1,205,800 276,405 1,482,205 (6,634) 1,475,571
Acquisition of minority interests - - - - - - (81,050) (81,050)
Acquisition of treasury shares - - (18,081) - - (18,081) - (18,081)
Dividends 19 - - - - (171,940) (171,940) - (171,940)
At December 31, 2008 862,568 194,386 (18,081) 1,465,142 1,154,932 3,658,947 - 3,658,947
Other comprehensive
income for the year - - - 14,453 - 14,453 - 14,453
Loss for the year - - - - (367,480) (367,480) - (367,480
Total comprehensive income for the year - - - 14,453 (367,480) (353,027) - (353,027)
Dividends 19 - - - - (42,985) (42,985) - (42,985)
At December 31, 2009 862,568 194,386 (18,081) 1,479,595 744,467 3,262,935 - 3,262,935
THE COMPANY
Issued Share Treasury Other Retained
capital premium shares reserves earnings Total
Notes (Note 14) (Note 14)
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At January 1, 2008 862,568 194,386 - 13,884 4,505 1,075,343
Other comprehensive income for the year - - - 100,578 - 100,578
Profit for the year - - - - 617,070 617,070
Total comprehensive income for the year - - - 100,578 617,070 717,648
Acquisition of treasury shares - - (18,081) - - (18,081)
Dividends 19 - - - - (171,940) (171,940)
At December 31, 2008 862,568 194,386 (18,081) 114,462 449,635 1,602,970
Loss for the year - - - - (45,916) (45,916)
Total comprehensive income for the year - - - - (45,916) (45,916)
Dividends 19 - - - - (42,985) (42,985)
At December 31, 2009 862,568 194,386 (18,081) 114,462 360,734 1,514,069
Statements of Cash Flows - Year ended December 31, 2009
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Operating Activities
Cash from/(used in) operations 26(a) 357,089 755,804 161,297 (1,290,933)
Interest received 38,080 20,043 108,054 115,996
Income tax paid 18(d) (45,763) (29,651) (2,759) -
Interest paid (324,539) (195,983) (156,369) (97,931)
Net cash flows from/(used in) operating activities 24,867 550,213 110,223 (1,272,868)
Investing Activities
Purchase of additional share in subsidiary 6 - - (26,003) -
Purchase of minority stake in subsidiary 6 - (7,350) - (7,350)
Purchase of property, plant and equipment 26(c) (218,581) (1,646,342) (2,053) (6,806)
Purchase of intangible assets 5 (20,647) (3,834) - (129)
Proceeds from sale of available-for-sale investment 1,384 - - -
Proceeds from sale of assets held for sale - 21,750 - -
Proceeds from sale of property, plant and equipment 2,478 797 - -
Dividends received 1,504 656 - 600,013
Net cash flows used in investing activities (233,862) (1,634,323) (28,056) 585,728
Financing Activities
Proceeds from long term borrowings 911,035 1,769,806 445,000 547,601
Payments of long term borrowings (576,202) (209,885) (385,925) -
Advances to associates - (549,902) - -
Repayment of obligation under finance leases (6,478) (4,490) (177) (151)
Dividends paid 19 (128,955) (85,970) (128,955) (85,970)
Net cash flows from/(used in) financing activities 199,400 919,559 (70,057) 461,480
Net increase/(decrease) in cash and cash equivalents (9,595) (164,551) 12,110 (225,660)
Movement in cash and cash equivalents
At January 1, (315,290) (150,739) (215,471) 10,189
Net increase/(decrease) (9,595) (164,551) 12,110 (225,660)
At December 31, 26(b) (324,885) (315,290) (203,361) (215,471)
Notes to the Financial Statements - Year ended December 31, 2009
1 COkOkA1L |NIOkMA1|ON
Naade Resorts Ltd is a public company incorporated in
Mauritius and its shares are listed on the Stock Exchange
of Mauritius. Its registered office is situated at 58, Pierre
Simonet Street, Floral. The main activity of the Group
and the Company is the operation and management of
resort hotels.
2 ACCOUN1|NG OL|C|LS
2.1 8AS|S OI kLAkA1|ON
The consolidated financial statements have been
prepared on a historical cost basis as modified by the
revaluation of land and buildings and available-for-
sale investments which are stated at their fair values
as disclosed in the accounting policies hereafter. The
consolidated financial statements are presented in
Mauritian rupees and all values are rounded to the
nearest thousand (Rs000) except when otherwise
indicated.
Statement of Compliance
The consolidated financial statements of Naade
Resorts Ltd and its subsidiaries have been prepared
in accordance with International Financial Reporting
Standards (IFRSs).
Basis of consolidation
The consolidated financial statements comprise the
financial statements of Naade Resorts Ltd and its
subsidiaries as at December 31 each year. The financial
statements of the subsidiaries are prepared for the same
reporting year as the parent Company, using consistent
accounting policies.
All intra-group balances, transactions, income and
expenses and profits and losses resulting from intra-
group transactions that are recognised in assets, are
eliminated in full.
Subsidiaries are fully consolidated from the date of
acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date
that such control ceases.
Minority interests represent the portion of profit or loss
and net assets that is not held by the Group and are
presented separately in the consolidated statement
of comprehensive income and within equity in the
consolidated statement of financial position, separately
from the parents equity. Acquisitions of minority
interests are accounted for using the parent entity
extension method, whereby, the difference between the
consideration and the value of the share of net assets
acquired is recognised in goodwill.
2.2 CHANGLS |N ACCOUN1|NG OL|C|LS
The accounting policies adopted are consistent with
those of the previous financial year except as follows:
The Group has adopted the following new and amended
IFRS and IFRIC interpretations as of 1 January 2009:
% IFRS 2 Share-based Payment: Vesting Conditions and
Cancellations effective 1 January 2009
% IFRS 7 Financial Instruments: Disclosures effective 1
January 2009
% IFRS 8 Operating Segments effective 1 January 2009
% IAS 1 Presentation of Financial Statements effective 1
January 2009
% IAS 23 Borrowing Costs (Revised) effective 1 January
2009
% IAS 32- Financial Instruments: Presentation and IAS 1
Puttable Financial Instruments and Obligations Arising
on Liquidation effective 1 January 2009
% IFRIC 9 Reassessment of Embedded Derivatives
and IAS 39 Financial Instruments: Recognition and
Measurement effective for periods ending on or after 30
June 2009
% IFRIC 13 Customer Loyalty Programmes effective 1
July 2008
% IFRIC 16 Hedges of a Net Investment in a Foreign
Operation effective 1 October 2008
% Improvements to IFRSs (May 2008 and April 2009)
When the adoption of the standard or interpretation
is deemed to have an impact on the financial position
or performance of the Group, its impact is described
below:
|IkS 2 Share-based ayment (kevsed)
The IASB issued an amendment to IFRS 2 which clarifies
the definition of vesting conditions and prescribes the
treatment for an award that is cancelled. The Group
adopted this amendment as of 1 January 2009. It
did not have an impact on the financial position or
performance of the Group.
(Continued)
2 ACCOUN1|NG OL|C|LS (Continued)
2.2 CHANGLS |N ACCOUN1|NG OL|C|LS (Continued)
IFRS 7 Financial Instruments: Disclosures
The amended standard requires additional disclosures
about fair value measurement and liquidity risk. Fair
value measurements related to items recorded at fair
value are to be disclosed by source of inputs using a
three level fair value hierarchy, by class, for all financial
instruments recognised at fair value. In addition, a
reconciliation between the beginning and ending
balance for level 3 fair value measurements is now
required, as well as significant transfers between levels
in the fair value hierarchy. The amendments also clarify
the requirements for liquidity risk disclosures with
respect to derivative transactions and assets used for
liquidity management. The liquidity risk disclosures are
not significantly impacted by the amendments and are
presented in Note 33.
IFRS 8 Operating Segments
IFRS 8 replaced IAS 14 Segment Reporting upon its
effective date. The Group concluded that the operating
segments determined in accordance with IFRS 8 are the
same as the business segments previously identified
under IAS 14. IFRS 8 disclosures are shown in Note 28.

|AS 1 resentaton oI Inanca| Statements
The revised standard separates owner and non-
owner changes in equity. The statement of changes
in equity includes only details of transactions with
owners, with non-owner changes in equity presented
in a reconciliation of each component of equity.
In addition, the standard introduces the statement
of comprehensive income: it presents all items of
recognised income and expense, either in one single
statement, or in two linked statements. The Group has
elected to present one single statement.
IAS 23 Borrowing Costs (revised)
The revised IAS 23 requires capitalisation of borrowing
costs that are directly attributable to the acquisition,
construction or production of a qualifying asset. The
Group was already adopting this policy and the revised
standard had no impact on the Groups comprehensive
income and financial position.
|AS 32 Inanca| |nstruments: resentaton and |AS
1 uttab|e Inanca| |nstruments and Ob|gatons
Arising on Liquidation
The standards have been amended to allow a limited
scope exception for puttable financial instruments
to be classified as equity if they fulfil a number of
specified criteria. The adoption of these amendments
did not have any impact on the financial position or the
performance of the Group.
IFRIC 9 Reassessment of Embedded Derivatives
and IAS 39 Financial Instruments: Recognition and
Measurement
This amendment to IFRIC 9 requires an entity to assess
whether an embedded derivative must be separated
from a host contract when the entity reclassifies a
hybrid financial asset out of the fair value through profit
or loss category. This assessment is to be made based on
circumstances that existed on the later of the date the
entity first became a party to the contract and the date
of any contract amendments that significantly change
the cash flows of the contract. IAS 39 now states that
if an embedded derivative cannot be reliably measured,
the entire hybrid instrument must remain classified as
at fair value through profit or loss.
|Ik|C 13 Customer Loya|ty rogrammes
IFRIC 13 requires customer loyalty credits to be
accounted for as a separate component of the sales
transaction in which they are granted. A portion of the
fair value of the consideration received is allocated to
the award credits and deferred. This is then recognised
as revenue over the period that the award credits are
redeemed. The Group has implemented a loyalty
program as from December 2009 for one of its
operation and has therefore applied the provisions of
this standard to account for points awarded.
IFRIC 16 Hedges of a Net Investment in a Foreign
Operation
The Interpretation is to be applied prospectively. IFRIC
16 provides guidance on the accounting for a hedge
of a net investment. As such it provides guidance on
identifying the foreign currency risks that qualify for
hedge accounting in the hedge of a net investment,
where within the Group the hedging instruments can
be held in the hedge of a net investment and how an
entity should determine the amount of foreign currency
gain or loss, relating to both the net investment and the
hedging instrument, to be recycled on disposal of the
net investment.
(Continued)
Improvements to IFRSs
In May 2008 and April 2009 the IASB issued omnibus of
amendments to its standards, primarily with a view to
removing inconsistencies and clarifying wording. There
are separate transitional provisions for each standard.
The adoption of the following amendments resulted
in changes to accounting policies but did not have any
impact on the financial position or performance of
the Group.
IFRS 8 Operating Segment Information: clarifies that
segment assets and liabilities need only be reported
when those assets and liabilities are included in
measures that are used by the chief operating decision
maker. As the Groups chief operating decision maker
does not review segment assets and liabilities, the
Group has not disclosed this information in Note 28.
|AS 1 resentaton oI Inanca| Statements: Assets
and liabilities classified as held for trading in accordance
with IAS 39 Financial Instruments: Recognition and
Measurement are not automatically classified as
current in the statement of financial position. The
Group analysed whether the expected period of
realisation of financial assets and liabilities differed from
the classification of the instrument. This did not
result in any reclassification of financial instruments
between current and non-current in the statement of
financial position.
IAS 7 Statement of Cash Flows: Explicitly states that
only expenditure that results in recognising an asset
can be classified as a cash flow from investing activities.
This amendment will impact the presentation in the
statement of cash flows.
|AS 16 roperty, |ant and Lqupment: Replaces
the term net selling price with fair value less costs
to sell. The Group amended its accounting policy
accordingly, which did not result in any change in the
financial position.
IAS 18 Revenue: The Board has added guidance (which
accompanies the standard) to determine whether an
entity is acting as a principal or as an agent. The features
to consider are whether the entity:
% Has primary responsibility for providing the goods or
service
% Has inventory risk
% Has discretion in establishing prices
% Bears the credit risk
The Group has assessed its revenue arrangements
against these criteria and concluded that it is acting as
principal in all arrangements. The revenue recognition
accounting policy has been updated accordingly.
IAS 20 Accounting for Government Grants and
Disclosures of Government Assistance: Loans granted
with no or low interest will not be exempt from the
requirement to impute interest. Interest is to be
imputed on loans granted with below-market interest
rates. This amendment did not impact the Group as
the government assistance received are not loans but
direct grants.
IAS 23 Borrowing Costs: The definition of borrowing
costs is revised to consolidate the two types of items
that are considered components of borrowing costs
into one the interest expense calculated using the
effective interest rate method calculated in accordance
with IAS 39. The Group has amended its accounting
policy accordingly which did not result in any change in
its financial position.
IAS 36 Impairment of Assets: When discounted cash
flows are used to estimate fair value less cost to sell
additional disclosure is required about the discount
rate, consistent with disclosures required when the
discounted cash flows are used to estimate value in
use. This amendment had no immediate impact on the
consolidated financial statements of the Group because
the recoverable amount of its cash generating units is
currently estimated using value in use.
The amendment clarified that the largest unit
permitted for allocating goodwill, acquired in a business
combination, is the operating segment as defined in
IFRS 8 before aggregation for reporting purposes. The
amendment has no impact on the Group as the annual
impairment test is performed before aggregation.
IAS 38 Intangible Assets: Expenditure on advertising
and promotional activities is recognised as an expense
when the Group either has the right to access the
goods or has received the service. This amendment
has no impact on the Group because it does not enter
into such promotional activities. The reference to
there being rarely, if ever, persuasive evidence to
support an amortisation method of intangible assets
other than a straight-line method has been removed.
The Group reassessed the useful lives of its intangible
assets and concluded that the straight-line method was
still appropriate.
(Continued)
Other amendments resulting from Improvements
to IFRSs to the following standards did not have any
impact on the accounting policies, financial position or
performance of the Group:
% IFRS 1 - First time adoption of International Financial
Reporting Standards Cost of an investment in a
subsidiary, jointly controlled entity or associate
% IFRS 7 - Financial Instruments: Disclosures
% IAS 8 - Accounting Policies, Change in Accounting
Estimates and Error
% IAS 10 - Events after the Reporting Period
% IAS 19 - Employee Benefits
% IAS 28 - Investments in Associates
% IAS 31 - Interest in Joint Ventures
% IAS 34 - Interim Financial Reporting
% IAS 38 - Intangible Assets
% IAS 40 - Investment Properties
% IFRIC 15 - Agreements for Construction of Real Estate
2.3 STANDARDS ISSUED BUT NOT YET EFFECTIVE
Standards issued but not yet effective up to the date of
issuance of the Groups financial statements are listed
below.
% IFRS 2 - Share-based Payment: Group cash settled
transactions effective as of 1 January 2010
% IFRS 3 - (as revised in 2003) Business Combination
effective as of 1 July 2009
% IFRS 5 - Non-current Assets Held for Sale and
Discontinued Operations effective as of 1 January 2010
% IFRS 9 - Financial Instruments effective as of 1 January
2013
% IAS 17 - Leases effective as of 1 January 2010
% IAS 27 - (as revised in 2008) Consolidated and Separate
Financial Statements effective as of 1 July 2009
% IAS 28 - (as revised in 2008) Investments in Associates
% IAS 39 - Recognition and measurement effective as of 1
January 2010
% IFRIC 17 - Distributions of Non-cash Assets to Owners
% IFRIC 18 - Transfers of Assets from Customers effective
as of 1 July 2009
The directors anticipate that applicable amendments
will be adopted in the Groups financial statements for
the financial year beginning 1 January 2010. Except for
accounting for leases, the directors do not anticipate any
major impact on the financial position and performance
following adoptions of these amendments.
2.4 SUMMAkY OI S|GN|I|CAN1 ACCOUN1|NG OL|C|LS
(a) Foreign currency translation
The consolidated financial statements are presented
in Mauritian Rupee, which is the Companys functional
and presentation currency. Each entity in the
Group determines its own functional currency and
items included in the financial statements of each
entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded
in the functional currency at the rate ruling at the
date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are retranslated at
the functional currency at the rate of exchange ruling
at the Reporting date. All differences are taken to profit
or loss with the exception of differences on foreign
currency borrowings that provide a hedge against a net
investment in a foreign entity. These are taken directly
to Other Comprehensive Income until the disposal of
the net investment, at which time they are recognised
in profit or loss. Tax charges and credits attributable to
exchange differences on those borrowings are also dealt
with in Other Comprehensive Income. Non-monetary
items that are measured in terms of historical cost in
a foreign currency are translated using the exchange
rates as at the dates of the initial transactions. Non-
monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the
date when the fair value was determined.
Where the functional currency of the subsidiaries at the
reporting date is not the presentation currency of the
Company (the Mauritian Rupee), the assets and liabilities
of these subsidiaries are translated into Mauritian
Rupee at the rate of exchange ruling at the Reporting
date and, their Statements of Comprehensice Income
are translated at the weighted average exchange rates
for the year. The exchange differences arising on the
translation are taken directly to a separate component
of Other Comprehensive Income. On disposal of
a foreign entity, the deferred cumulative amount
recognised in Other Comprehensive Income relating to
that particular foreign operation is recognised in profit
or loss.
(Continued)
(Continued)
(b) roperty, p|ant and equpment
All property, plant and equipment are initially recorded
at cost. Land and buildings are subsequently shown at
fair value, based on subsequent valuations by external
independent valuers, less subsequent depreciation
for property and impairment losses recognised after
the date of revaluation. All other property, plant and
equipment is stated at historical cost less depreciation
and impairments.
Increases in the carrying amount arising on revaluation
are credited to revaluation reserve in Other
Comprehensive Income. Decreases that offset previous
increases of the same asset are charged against the
revaluation reserve to the extent that the decrease does
not exceed the amount held in the revaluation reserve
in respect of that same asset; all other decreases are
charged to profit or loss.
The carrying values of property, plant and equipment
are reviewed for impairment at each reporting date or
when events or changes in circumstances indicate that
the carrying value may not be recoverable.
Gains and losses on disposal of property, plant and
equipment are determined by reference to their carrying
amount and are taken into account in determining
operating profit. On disposal of revalued assets,
amounts in revaluation and other reserves relating to
that asset are transferred to retained earnings.
Depreciation is calculated on the straight line method
to write off the cost of each asset, or the revalued
amounts, to their residual values over their estimated
useful lives. The useful life, residual value and method
of depreciation of an item of property, plant and
equipment is reviewed at each financial year end and
adjusted prospectively if appropriate. The residual
values and remaining useful lives of buildings have been
estimated by the independent external valuers.
The annual rate of depreciation is as follows:
Buildings - 2% 9.45 %
Plant and equipment - 10% - 20%
Furniture and fittings - 10% - 33.33%
Motor vehicles - 20%
Computer equipment - 10% - 33.33%
(c) Investments in subsidiaries
Financial statements of the Company
Investments in subsidiary companies are carried at
cost which is the aggregate of the fair values, at the
date of exchange, of assets given, liabilities incurred or
assumed, and equity instruments issued by the acquirer,
in exchange for control of the acquiree, plus any costs
directly attributable to the business combination. The
carrying amount is reduced to recognise any impairment
in the value of individual investments. The impairment
loss is taken to profit or loss.
Consolidated financial statements
The consolidated financial statements incorporate
the financial statements of the Company and entities
controlled by the Company (its subsidiaries). Subsidiaries
are consolidated from the date on which control is
transferred to the Group and cease to be consolidated
from the date on which control is transferred out of the
Group. Business combinations are accounted for using
the purchase method of accounting.
(d) Investments in associates
Associated companies are entities in which the
Company or the Group has significant influence but
which are neither a subsidiary nor a joint venture of the
Company or the Group.
Financial statements of the Company
Investments in associates are carried at cost. The
carrying amount is reduced to recognise any impairment
in the value of individual investments. The impairment
loss is taken to profit or loss.
Consolidated financial statements
The Groups investments in associated companies are
accounted for using the equity method of accounting.
The Statement of Comprehensive Income reflects the
Groups share of the results of operations of associated
companies. The investment in associate is carried in
the Statement of Financial Position at cost plus post-
acquisition changes in the Groups share of net assets of
the associated companies, less any impairment loss. The
Groups investment in its associates includes goodwill
on acquisition, which is treated in accordance with the
accounting policy for goodwill stated further below.
(Continued)
(Continued)
(d) Investments in associates (Continued)
Consolidated financial statements (Continued)
The Statement of Comprehensive Income reflects the
share of the results of the operations of the associate.
Where there has been a change recognised directly in
the Other Comprehensive Income of the associate, the
Group recognises its share of any changes and discloses
this, when applicable, in Other Comprehensive Income.
When the Groups share of losses exceeds the carrying
amount of the investment, the investment is reported
at nil value and recognition is discontinued except to
the extent of the Groups commitment on behalf of the
associated company.
(e) Intangible assets
Goodwill
Goodwill acquired in a business combination is initially
measured at cost being the excess of the cost of the
business combination over the Groups interest in the
net fair value of the identifiable assets, liabilities and
contingent liabilities. Following initial recognition,
goodwill is measured at cost less any accumulated
impairment losses. Goodwill is reviewed for impairment,
annually or more frequently if events or changes
in circumstances indicate that the carrying value may
be impaired.
For the purpose of impairment testing, goodwill
acquired in a business combination is, from the
acquisition date, allocated to each of the Groups cash-
generating units, or groups of cash-generating units,
that are expected to benefit from the synergies of the
combination, irrespective of whether other assets or
liabilities of the Group are assigned to those units or
groups of units. Each unit or group of units to which the
goodwill is so allocated:
% represents the lowest level within the Group at which
the goodwill is monitored for internal management
purposes; and
% is not larger than a segment based on either the
Groups primary or the Groups secondary reporting
format determined in accordance with IFRS 8 Segment
Reporting.
Impairment is determined by assessing the recoverable
amount of the cash-generating unit (group of cash-
generating units), to which the goodwill relates. Where
the recoverable amount of the cash-generating unit
(group of cash-generating units) is less than the carrying
amount, an impairment loss is recognised. Where
goodwill forms part of a cash-generating unit (group of
cash-generating units) and part of the operation within
that unit is disposed of, the goodwill associated with
the operation disposed of is included in the carrying
amount of the operation when determining the gain or
loss on disposal of the operation. Goodwill disposed of
in this circumstance is measured based on the relative
values of the operation disposed of and the portion of
the cash-generating unit retained.
Negative goodwill represents the excess of the acquirers
interest in the fair values of the identifiable net assets
and liabilities acquired over the cost of acquisition. It is
recognised immediately as income in the Statement of
Comprehensive Income.
Negative goodwill arising from the acquisition of
an associated company is included as income in the
determination of the Groups share of the associates
profit or loss of the period in which the associate
was acquired.
Other intangible assets
Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is the fair
value as at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and any accumulated
impairment losses. Internally generated intangible
assets, excluding capitalised development costs, are not
capitalised and expenditure is charged against profits
in the year in which the expenditure is incurred. The
useful lives of intangible assets are assessed to be either
finite or indefinite. Intangible assets with finite lives are
amortised over the useful economic life and assessed
for impairment whenever there is an indication that
the intangible asset may be impaired. The amortisation
period and the amortisation method for an intangible
asset with a finite useful life is reviewed at least at
each financial year-end. Changes in the expected
useful life or the expected pattern of consumption of
future economic benefits embodied in the asset is
accounted for by changing the amortisation period
or method, as appropriate, and treated as changes in
accounting estimates.
(Continued)
(Continued)
(e) Intangible assets (Continued)
Other intangible assets (Continued)
The amortisation expense on intangible assets with
finite lives is recognised in profit or loss in the expense
category consistent with the function of the intangible
asset. The estimated useful lives of intangible assets
with finite useful lives are as follows:
Computer software - 5 years
Leasehold rights - over the period of the leases.
Intangible assets with indefinite useful lives are tested
for impairment annually either individually or at the
cash-generating unit level. Such intangibles are not
amortised. The useful life of an intangible asset with an
indefinite life is reviewed annually to determine whether
indefinite life assessment continues to be supportable.
If not, the change in the useful life assessment from
indefinite to finite is made on a prospective basis.
(f) Trade and other receivables
Trade and other receivables are initially recognised at
original invoice amount and are subsequently carried
at amortised cost using the effective interest method
less any allowance for impairment. Gains and losses are
recognised through profit or loss when the receivables
are derecognised or impaired, as well as through the
amortisation process.
(g) Derivative financial instruments
The Group sometimes uses forward contracts to hedge
its risks associated with foreign currency fluctuations.
Such derivative financial instruments are initially
recognized at fair value on the date on which a
derivative contract is entered into and are subsequently
remeasured at fair value. The fair value of forward
currency contracts is calculated by reference to current
forward exchange rates for contracts with similar
maturity profiles. Derivatives are carried as assets when
the fair value is positive and as liabilities when the fair
value is negative.
Any gains and losses arising from changes in the fair
value of derivatives during the year that do not qualify
for hedge accounting are taken directly to profit or loss.
(h) Other financial assets
Financial assets within the scope of IAS 39 are classified
as either financial assets at fair value through profit
or loss, loans and receivables, held-to-maturity
investments, or available-for-sale financial assets,
as appropriate. When financial assets are recognised
initially, they are measured at fair value, plus, in the
case of investments not at fair value through profit or
loss, directly attributable transaction costs. The Group
determines the classification of its financial assets after
initial recognition and, where allowed and appropriate,
re-evaluates this designation at each financial year-end.
All regular way purchases and sales of financial assets
are recognised on the trade date i.e. the date that the
Group commits to purchase the asset. Regular way
purchases or sales are purchases or sales of financial
assets that require delivery of assets within the period
generally established by regulation or convention in
the marketplace.
The Group and the Company has the following
investment:
Available-for-sale financial assets
Available-for-sale financial assets are those non-
derivative financial assets that are designated as
available-for-sale or are not loans and receivables, held-
to-maturity investments or investments held at fair
value through profit and loss. After initial recognition
available-for sale financial assets are measured at
fair value with gains or losses being recognised as a
separate component of equity until the investment is
derecognised or until the investment is determined to
be impaired at which time the cumulative gain or loss
previously reported in other comprehensive income is
included in profit or loss.
The fair value of investments that are actively traded in
organised financial markets is determined by reference
to quoted market bid prices at the close of business
on the Reporting date. For investments where there
is no active market, fair value is determined using
valuation techniques. Such techniques include using
recent arms length market transactions; reference to
the current market value of another instrument, which
is substantially the same; discounted cash flow analysis
and option pricing models.
(Continued)
(Continued)
(i) Interest-bearing loans, debentures and borrowings
All loans and borrowings are initially recognised at the
fair value of the consideration received less directly
attributable transaction costs.
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the effective interest method.
Gains and losses are recognised in profit or loss when
the liabilities are derecognised as well as through the
amortisation process.
(j) Cash and cash equivalents
Cash and short-term deposits in the Statement of
Financial Position comprise cash at banks and in hand
and short-term deposits with an original maturity of
three months or less.
For the purpose of the consolidated statement of cash
flows, cash and cash equivalents consist of cash and
cash equivalents as defined above, net of outstanding
bank overdrafts. Such financial assets are carried at
amortised cost using the effective interest rate method.
(k) Derecognition of financial assets and liabilities
Financial assets
A financial asset (or, where applicable a part of a
financial asset or part of a group of similar financial
assets) is derecognised where:
% the rights to receive cash flows from the asset have
expired;
% the Company or the Group retains the right to
receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to
a third party under a pass-through arrangement; or
% the Company or the Group has transferred its rights
to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of
the asset, or (b) has neither transferred nor retained
substantially all the risks and rewards of the asset, but
has transferred control of the asset.
Where the Company or the Group has transferred
its rights to receive cash flows from an asset and has
neither transferred nor retained substantially all the
risks and rewards of the asset nor transferred control
of the asset, the asset is recognised to the extent of the
Companys or the Groups continuing involvement in
the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company or the Group could be required to repay.
Where continuing involvement takes the form of a
written and/or purchased option (including a cash-
settled option or similar provision) on the transferred
asset, the extent of the Groups continuing involvement
is the amount of the transferred asset that the Group
may repurchase, except that in the case of a written
put option (including a cash-settled option or similar
provision) on an asset measured at fair value, the extent
of the Groups continuing involvement is limited to the
lower of the fair value of the transferred asset and the
option exercise price.
Financial liabilities
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
Where an existing financial liability is replaced by
another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as a derecognition of the
original liability and the recognition of a new liability,
and the difference in the respective carrying amounts is
recognised in profit or loss.
(l) Impairment of financial assets
The Group assesses at each Reporting date whether a
financial asset or group of financial assets is impaired.
Assets carried at cost
If there is objective evidence that an impairment loss
on an unquoted equity instrument that is not carried
at fair value because its fair value cannot be reliably
measured, or on a derivative asset that is linked to and
must be settled by delivery of such an unquoted equity
instrument has been incurred, the amount of the loss is
measured as the difference between the assets carrying
amount and the present value of estimated future cash
flows discounted at the current market rate of return
for a similar financial asset.
(Continued)
(Continued)
(l) Impairment of financial assets (Continued)
Available-for-sale financial assets
If an available-for-sale asset is impaired, an amount
comprising the difference between its cost (net of any
principal payment and amortisation) and its current fair
value, less any impairment loss previously recognised in
profit or loss, is transferred from Other Comprehensive
Income to profit or loss. Reversals in respect of equity
instruments classified as available-for-sale are not
recognised in profit. Reversals of impairment losses
on debt instruments are reversed through profit or
loss, if the increase in fair value of the instrument can
be objectively related to an event occurring after the
impairment loss was recognised in profit or loss.
Trade and other receivables
For amounts due from customers carried at amortised
cost, the Group first assesses individually whether
objective evidence of impairment exists individually
for financial assets that are individually significant, or
collectively for financial assets that are individually not
significant. If the Group determines that no objective
evidence of impairment exists for individually assessed
financial asset, whether significant or not, it includes
the asset in a group of financial assets with similar
credit risk characteristics and collectively assesses them
for impairment.
If there is objective evidence that an impaiment loss has
been incurred, the amount of the loss is measured as
the difference between the assets carrying amount and
the present value of estimated future cash flows. The
carrying amount of the asset is reduced through the use
of an allowance account and the amount of the loss is
recognised in profit or loss.
(m) Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount reported in the consolidated statement
of financial position if, and only if, there is a currently
enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net
basis, or to realise the assets and settle the liabilities
simultaneously.
(n) Hedge Accounting
For the purpose of hedge accounting, hedges are
classified as:
% fair value hedges when hedging the exposure to changes
in the fair value of a recognised asset or liability or an
unrecognised firm commitment (except for foreign
currency risk); or
% cash flow hedges when hedging exposure to variability
in cash flows that is either attributable to a particular
risk associated with a recognised asset or liability or
a highly probable forecast transaction or the foreign
currency risk in an unrecognised firm commitment; or
% hedges of a net investment in a foreign operation.
At the inception of a hedge relationship, the Group
formally designates and documents the hedge
relationship to which the Group wishes to apply hedge
accounting and the risk management objective and
strategy for undertaking the hedge.
The documentation includes identification of the
hedging instrument, the hedged item or transaction,
the nature of the risk being hedged and how the entity
will assess the hedging instruments effectiveness in
offsetting the exposure to changes in the hedged items
fair value or cash flows attributable to the hedged
risk. Such hedges are expected to be highly effective
in achieving offsetting changes in fair value or cash
flows and are assessed on an ongoing basis to
determine that they actually have been highly effective
throughout the financial reporting periods for which
they were designated.
The Group currently has only cash flow hedges which
are accounted for as follows:
The effective portion of the gain or loss on the
hedging instrument is recognised directly in Other
Comprehensive Income, while any ineffective portion is
recognised immediately in profit or loss.
Amounts taken to Other Comprehensive Income are
transferred to profit or loss when the hedged transaction
affects profit or loss, such as when the hedged financial
income or financial expense is recognised or when
a forecast sale occurs. Where the hedged item is the
cost of a non-financial asset or non-financial liability,
the amounts taken to Other Comprehensive Income are
transferred to the initial carrying amount of the non-
financial asset or liability.
(Continued)
(Continued)
(n) Hedge Accounting (Continued)
If the forecast transaction or firm commitment is no
longer expected to occur, amounts previously recognised
in Other Comprehensive Income are transferred to
profit or loss. If the hedging instrument expires or is
sold, terminated or exercised without replacement
or rollover, or if its designation as a hedge is revoked,
amounts previously recognised in Other Comprehensive
Income remain in Other Comprehensive Income until
the forecast transaction or firm commitment occurs.
The Group uses 2 loans as hedges of its exposure to
dividend flows from foreign entities.
(o) Impairment of non-financial assets
The Group assesses at each reporting date whether
there is an indication that an asset may be impaired. If
any such indication exists, or when annual impairment
testing for an asset is required, the Group makes an
estimate of the assets recoverable amount. An assets
recoverable amount is the higher of an assets or cash-
generating units fair value less costs to sell and its value
in use and is determined for an individual asset, unless
the asset does not generate cash inflows that are largely
independent of those from other assets or groups of
assets. Where the carrying amount of an asset exceeds
its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount. In
assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset. Impairment losses of continuing operations are
recognised in profit or loss in those expense categories
consistent with the function of the impaired asset.
An assessment is made at each reporting date as
to whether there is any indication that previously
recognised impairment losses may no longer exist
or may have decreased. If such indication exists,
the recoverable amount is estimated. A previously
recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the
assets recoverable amount since the last impairment
loss was recognised. If that is the case the carrying
amount of the asset is increased to its recoverable
amount. That increased amount cannot exceed the
carrying amount that would have been determined,
net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is
recognised in profit or loss unless the asset is carried at
revalued amount, in which case the reversal is treated
as a revaluation increase. After such a reversal the
depreciation charge is adjusted in future periods to
allocate the assets revised carrying amount, less any
residual value, on a systematic basis over its remaining
useful life.
(p) Inventories
Inventories are valued at the lower of cost and net
realisable value. Costs incurred in bringing each product
to its present location and condition are accounted for
on a weighted average cost basis.
Net realisable value is the estimated selling price in
the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make
the sale.
(q) rovsons
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past
event and it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. Where the Group expects
some or all of a provision to be reimbursed, for example
under an insurance contract, the reimbursement is
recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating
to any provision is presented in profit or loss net of any
reimbursement. If the effect of the time value of money
is material, provisions are discounted using a current
pre-tax rate that reflects, where appropriate, the risks
specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is
recognised as a borrowing cost.
(r) Retirement Benefit Obligations
The Group operates a defined benefit plan for some
of its employees. For the remaining employees, the
Group contributes to a unitised defined contribution
pension scheme that was established on July 1, 2002.
The employer contributes 9% of salaries less their
contribution to the National Pensions Scheme in
respect of members of the fund. Members contribute
6% of salaries less their contribution to the National
Pensions Scheme. In each case the minimum monthly
contribution is Rs.100.
(Continued)
(Continued)
(r) Retirement Benefit Obligations (Continued)
Defined benefits schemes
The cost of providing benefits under the defined benefit
plans is determined using the projected unit credit
actuarial valuation method. Actuarial gains and losses
are recognised as income or expense when the net
cumulative unrecognised actuarial gains and losses at
the end of the previous reporting year exceeded 10%
of the higher of the defined benefit obligation and the
fair value of plan assets at that date. These gains or
losses are recognised over the expected average
remaining working lives of the employees participating
in the plans.
The past service cost is recognised as an expense on
a straight-line basis over the average period until the
benefits become vested. If the benefits are already
vested immediately following the introduction of,
or changes to, a pension plan, past service cost is
recognised immediately.
The defined benefit liability is the aggregate of the
present value of the defined benefit obligation and
actuarial gains and losses not recognised reduced by
past service cost not yet recognised and the fair value
of plan assets out of which the obligations are to be
settled directly. If such aggregate is negative, the asset
is measured at the lower of such aggregate or the
aggregate of cumulative unrecognised net actuarial
losses and past service cost and the present value of
any economic benefits available in the form of refunds
from the plan or reductions in the future contributions
to the plan.
Defined contributions schemes
Payments to defined contribution retirement plans are
charged as an expense as they fall due.
Other retirement benefits
For employees who are not covered by the above plan,
the net present value of gratuities payable under the
Employment Right Act 2008 is calculated by a qualified
actuary and provided for. The obligations under this
item are not funded.
(s) Taxes
Current tax
Current tax assets and liabilities for the current and
prior periods are measured at the amount expected to
be recovered from or paid to the taxation authorities.
Deferred tax
Deferred income tax is provided using the liability
method on taxable temporary differences at the
Reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial
reporting purposes.
Deferred income tax assets are recognised for all
deductible temporary differences, carry-forward of
unused tax credits and unused tax losses, to the extent
that it is probable that taxable profit will be available
against which the deductible temporary differences,
and the carry-forward of unused tax credits and unused
tax losses can be utilised.
The carrying amount of deferred income tax assets is
reviewed at each Reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised. Unrecognised
deferred income tax assets are reassessed at each
Reporting date and are recognised to the extent that
it has become probable that future taxable profit will
allow the deferred tax asset to be recovered.
The principal temporary differences arise from
depreciation on property, plant and equipment,
revaluations of certain non-current assets, tax losses
carried forward and retirement benefit obligations.
Deferred income tax assets and liabilities are measured
at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based
on tax rates that have been enacted or substantially
enacted at the Reporting date.
Income tax relating to items recognised directly in
Other Comprehensive Income is recognised in Other
Comprehensive Income and not profit or loss.
Deferred tax assets and deferred tax liabilities are offset,
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.
(Continued)
(Continued)
(s) Taxes (Continued)
Value Added Tax
Revenues, expenses and assets are recognised net of the
amount of value added tax except:
% where the value added tax incurred on a purchase of
assets or services is not recoverable from the taxation
authority, in which case the value added tax is
recognised as part of the cost of acquisition of the asset
or as part of the expense item as applicable; and
% receivables and payables that are stated with the
amount of value added tax included.
The net amount of value added tax recoverable from,
or payable to, the taxation authority is included as part
of accounts receivables or payables in the Statement of
Financial Position.
(t) Lease
The determination of whether an arrangement is,
or contains a lease is based on the substance of the
arrangement and requires an assessment of whether
the fulfilment of the arrangement is dependent on the
use of a specific asset or assets and the arrangement
conveys a right to use the asset.
Finance leases, which transfer to the Group substantially
all the risks and benefits incidental to ownership of the
leased item, are capitalised at the inception of the lease
at the fair value of the leased property or, if lower, at
the present value of the minimum lease payments.
Lease payments are apportioned between the finance
charges and reduction of the lease liability so as to
achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are charged
directly against income.
Capitalised leased assets are depreciated over the
shorter of the estimated useful life of the asset and
the lease term, if there is no reasonable certainty that
the Group will obtain ownership by the end of the
lease term.
Operating lease payments are recognised as an expense
in profit or loss on a straight-line basis over the
lease term.
(u) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which
are assets that necessarily take a substantial period of
time to get ready for their intended use, are added to
the cost of those assets, until such time as the assets
are substantially ready for their intended use.
All other borrowing costs are recognised as an expense
when incurred.
(v) Treasury shares
Own equity instruments which are reacquired (treasury
shares) are recognised at cost and deducted from
equity. No gain or loss is recognised in profit or loss on
the purchase, sale, issue or cancellation of the Groups
own equity instruments. Any difference between the
carrying amount and the consideration is recognised in
other reserves.
(w) Revenue recognition
Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Group and
the revenue can be reliably measured. The following
specific criteria must also be met:
(i) Sale of goods and services
Revenue is recognised when the significant risks and
rewards of ownership of the goods have passed to
the buyer and upon customer acceptance, if any, or
performance of services, net of value added taxes and
discounts, and after eliminating sales within the Group.
The Group turnover reflects the invoiced values derived
from hotel operations.
(ii) Other revenues
Other revenues earned by the Company are recognised
on the following basis:
% Interest income - as it accrues (taking into account
the effective yield on the asset) unless collectibility is
in doubt.
% Dividend income - when the shareholders right to
receive payment is established.
(Continued)
(Continued)
(x) Government grants
Government grants are recognised where there is
reasonable assurance that the grant will be received and
all attaching conditions will be complied with. When
the grant relates to an expense item, it is recognised as
income over the period necessary to match the grant
on a systematic basis to the costs that it is intended to
compensate. Where the grant relates to an asset, it is
recognised as deferred income and released to income
in equal annual amounts over the expected useful life of
the related asset.
3 SIGNIFICANT ACCOUNTING JUDGEMENTS
AND ESTIMATES
The preparation of the Groups consolidated financial
statements requires management to make judgements,
estimates and assumptions that affect the reported
amount of revenues, expenses, assets and liabilities, and
the disclosure of contingent liabilities, at the reporting
date. However, uncertainty about these assumptions
and estimates could result in outcomes that require
a material adjustment to the carrying amount of the
asset or liability affected in future periods.
Judgements
In the process of applying the Groups accounting
policies, management has made the following
judgement, apart from those involving estimations,
which has the most significant effect on the amounts
recognised in the financial statements:
Scope of Consolidation
The Company does not legally own SNC St Paul and
SNC Hermitage, two entities in Runion Island which
respectively own the property of SA Villas du Lagon and
SAS Villas du Rcif. Having regard to the fact that:
% these entities were set up in order to take advantage
of a specific tax exemption scheme proper to French
territories;
% the group has an obligation to buy and the present
shareholders an obligation to sell the shares of these
entities at a specified time at Euro 1 per shareholder;
The Directors believe that these entities are Special
Purpose Entities (SPEs) since:
% in substance, the activities of the SPEs are being
conducted on behalf of the Group according to its
specific business needs so that the Group obtains
benefits from the SPEs operation;
% in substance, the Group has the decision-making
powers to obtain the majority of the benefits of the
activities of the SPEs. This is achieved by the existence
of an autopilot mechanism;
% in substance, the Group has rights to obtain the
majority of the benefits of the SPEs and therefore may
be exposed to risks incident to the activities of the SPEs;
and
% in substance, the Group retains the majority of the
residual or ownership risks related to the SPEs or its
assets in order to obtain benefits from its activities.
Consequently, the Directors have consolidated financial
statements of these SPEs in accordance with SIC 12
Consolidation Special Purpose Entities.
Estimates and assumptions
The key assumptions concerning the future and
other key sources of estimation uncertainty at the
Reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets
and liabilities within the next financial year are
discussed below.
Deferred tax assets
Deferred tax assets are recognised for all unused tax
losses to the extent that it is probable that taxable
profit will be available against which the losses can be
utilised. Significant management judgement is required
to determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and level of
future taxable profits together with future tax planning
strategies. At December 31, 2009, the status of unused
tax losses was as follows:
Recognised Unrecognised Total
(Rs000) (Rs000) (Rs000)
Tax losses 630,213 340,400 970,613
(Continued)
3 SIGNIFICANT ACCOUNTING JUDGEMENTS
AND ESTIMATES (Continued)
Useful life and residual value of buildings
The depreciation of buildings is dependant on the
estimation of the useful lives and residual values of the
buildings, which have been made by the Group based
on the report of independent valuers. The carrying
amount of buildings included under Property, Plant and
Equipment amounted to Rs.5,361 M (2008: Rs.5,346 M).
Impairment of goodwill
Goodwill is tested on an annual basis for impairment loss
in accordance with IFRS 3. This requires an estimation
of the value in use of the cash generating units to
which goodwill is allocated. Estimating a value in use
amount requires management to make estimates of the
expected future cash flows from the cash generating
unit and the selection of suitable discount rate in order
to compute the present value of expected cash flow.
The carrying amount of goodwill as at December 31,
2009 amounted to Rs.193M (2008: Rs.193M). Further
details are given in Note 5.
Retirement benefits obligations
The cost of defined benefit pension plans and related
provision, as disclosed in Note 11 to the financial
statements requires the use of actuarial valuations.
The actuarial valuation involves the use of significant
estimate in respect of inter-alia, discount rate, expected
return on plan assets, future salary increases, mortality
rate and future pension increases. Due to the long term
nature of these plans, such estimates are subject to
significant uncertainty. The net employee liability at
December 31, 2009 is Rs.19.95 M (2008: Rs.17.78 M).
Further details are set out in Note 11.
(Continued)
4 kOLk1Y, LAN1 AND LQU|MLN1
THE GROUP
Ireeho|d 8u|dngs on |ant Iurnture Constructon
Land and Leasehold and and Motor Computer in
8u|dngs Land Lqupment Ittngs Vehc|es Lqupment rogress 1ota|
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
Cost and Valuation
At January 1, 2008 293,417 2,990,148 386,485 302,404 62,795 50,986 246,247 4,332,482
Additions 3,352 1,327,684 200,696 100,516 11,259 8,738 - 1,652,245
Revaluation adjustment 317,956 743,873 - - - - - 1,061,829
Disposal adjustment - (17,363) (25,123) (16,667) (3,306) (130) - (62,589)
Transfer 3,000 243,247 - - - - (246,247) -
Exchange difference - 53,595 5,979 436 (247) (662) - 59,101

At December 31, 2008 617,725 5,341,184 568,037 386,689 70,501 58,932 - 7,043,068
Transfers - (1,004) 1,594 (590) -
Additions 481 131,778 61,596 4,548 348 7,837 11,993 218,581
Disposal adjustment - - (32,779) (5,388) (4,374) (5,365) - (47,906)
Transfer to intangible asset (Note 5) - - - - - (3,906) - (3,906)
Exchange difference - (19,285) (2,599) 100 230 144 - (21,410)
At December 31, 2009 618,206 5,452,673 595,849 385,359 66,705 57,642 11,993 7,188,427
Depreciation
At January 1, 2008 11,254 249,230 226,845 209,127 29,610 37,491 - 763,557
Charge for the year 3,101 84,271 34,932 24,120 10,562 5,636 - 162,622
Revaluation adjustment (14,355) (218,167) - - - - - (232,522)
Disposal adjustment - (17,363) (20,888) (13,480) (2,494) (130) - (54,355)
Transfer - (1,614) - 1,614 - - - -
Exchange difference - 1,842 754 676 (44) 52 - 3,280
At December 31, 2008 - 98,199 241,643 222,057 37,634 43,049 - 642,582
Transfers - 75 (79) (20) - 24 - -
Charge for the year 1,424 99,557 76,200 30,767 11,044 8,396 - 227,388
Disposal adjustment - - (30,733) (3,583) (4,013) (5,276) - (43,605)
Transfer to intangible asset (Note 5) - - - - - (3,501) - (3,501)
Exchange difference - (1,082) (1,123) (200) 132 323 - (1,950)
At December 31, 2009 1,424 196,749 285,908 249,021 44,797 43,015 - 820,914
Net Book Values
At December 31, 2009 616,782 5,255,924 309,941 136,338 21,908 14,627 11,993 6,367,513
At December 31, 2008 617,725 5,242,985 326,394 164,632 32,867 15,883 - 6,400,486
(Continued)
4 kOLk1Y, LAN1 AND LQU|MLN1 (Continued)
THE COMPANY
Ireeho|d 8u|dngs on |ant Iurnture
Land and Leasehold and and Motor Computer
Buildings Land Equipment Fittings Vehicles Equipment Total
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
Cost and Valuation
At January 1, 2008 54,913 69,250 15,681 17,840 3,006 7,293 167,983
Transfer - - - (1,013) - 1,013 -
Additions 1,935 1,252 455 2,157 - 1,007 6,806
Revaluation adjustment 43,152 54,498 - - - - 97,650
Disposal adjustment - - - (2,668) - - (2,668)
At December 31, 2008 100,000 125,000 16,136 16,316 3,006 9,313 269,771
Transfer to intangible asset (Note 5) - - - - - (3,315) (3,315)
Additions - - 1,909 144 - - 2,053
Disposal - - (2,221) - (570) (2,086) (4,877)
At December 31, 2009 100,000 125,000 15,824 16,460 2,436 3,912 263,632
Depreciation
At January 1, 2008 3,840 12,784 12,307 10,395 1,289 7,002 47,617
Charge for the year 810 3,125 768 1,259 487 1,350 7,799
Revaluation adjustment (4,650) (15,909) - - - - (20,559)
Disposal adjustment - - - (2,668) - - (2,668)
At December 31, 2008 - - 13,075 8,986 1,776 8,352 32,189
Transfer to intangible asset (Note 5) - - - - - (3,315) (3,315)
Charge for the year 1,038 2,187 636 2,954 290 279 7,384
Disposal adjustment - - (2,163) - (570) (2,086) (4,819)
At December 31, 2009 1,038 2,187 11,548 11,940 1,496 3,230 31,439
Net Book Values
At December 31, 2009 98,962 122,813 4,276 4,520 940 682 232,193
At December 31, 2008 100,000 125,000 3,061 7,330 1,230 961 237,582
(Continued)
4 kOLk1Y, LAN1 AND LQU|MLN1 (Continued)
(a) The freehold land and buildings and buildings on leasehold land of the Group and the Company were revalued in 2008 at
their open market value by Gexim Real Estate Ltd, Land Surveyor.
The book values were adjusted to the revalued amount and the revaluation surpluses net of deferred taxation were credited
to revaluation reserves.
The Groups policy is to revalue property, plant & equipment every five years unless there is evidence that the fair value of
the assets differ materially from the carrying amount.
If the land and buildings were stated on the historical cost basis, the amounts would be as follows:-
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Cost 4,165,252 4,032,993 104,083 104,083
Accumulated depreciation (527,947) (447,287) (47,139) (45,057)
Net carrying amount 3,637,305 3,585,706 56,944 59,026
(b) Motor vehicles above include leased assets as follows:
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Cost 35,932 36,718 - 786
Accumulated depreciation (19,333) (18,527) - (628)
Net book values 16,599 18,191 - 158
(c) Bank borrowings are secured on the assets of the Group and the Company.
(d) No borrowing costs have been capitalised during the year. (2008: Rs.70.5 M).
(Continued)
5 INTANGIBLE ASSETS
THE GROUP
Computer
Leasehold Software &
Rights Goodwill Licences Total
Rs000 Rs000 Rs000 Rs000
Cost
At January 1, 2008 240,362 193,621 31,761 465,744
Additions - - 3,834 3,834
Disposal - - (119) (119)
Exchange difference 741 - 133 874
At December 31, 2008 241,103 193,621 35,609 470,333
Transfer from property, plant and equipment (Note 4) - - 3,906 3,906
Additions 9,950 - 10,697 20,647
Disposals - - (1,787) (1,787)
Exchange difference (245) - (24) (269)
At December 31, 2009 250,808 193,621 48,401 492,830
Amortisation
At January 1, 2008 31,122 - 13,256 44,378
Charge for the year 5,005 - 4,685 9,690
Disposal adjustment - - (119) (119)
Exchange difference 29 - 985 1,014
At December 31, 2008 36,156 - 18,807 54,963
Transfer from property, plant and equipment (Note 4) - - 3,501 3,501
Charge for the year 5,313 - 5,580 10,893
Disposal adjustment - - (1,787) (1,787)
Exchange difference (20) - 6 (14)
At December 31, 2009 41,449 - 26,107 67,556
Net Book Values
At December 31, 2009 209,359 193,621 22,294 425,274
At December 31, 2008 204,947 193,621 16,802 415,370
(Continued)
5 INTANGIBLE ASSETS (Continued)
THE COMPANY

Computer
Software
Rs000
Cost
At January 1, 2008 3,190
Additions 129
At December 31, 2008 3,319
Transfer from property, plant and equipment (Note 4) 3,315
At December 31, 2009 6,634
Amortisation
At January 1, 2008 1,337
Charge for the year 621
At December 31, 2008 1,958
Transfer from property, plant and equipment (Note 4) 3,315
Charge for the year 490
At December 31, 2009 5,763
Net Book Values
At December 31, 2009 871
At December 31, 2008 1,361
(a) Impairment test on goodwill
Goodwill represents the surplus of purchase consideration over the fair value of the assets acquired as at the date of
acquisition. Goodwill has been assessed as having an indefinite life and in accordance with IFRS 3, goodwill has been
assessed for impairment based on each cash generating unit.
The recoverable amount of each cash generating unit has been determined based on value-in-use calculation. The calculation
used pre-tax cash flow projection based on financial budgets approved by management covering a three-year period. The
pre-tax discount rate applied to the cash flow projection is 16% (2008: 14%).
The key assumptions used for preparing the cash flow forecasts are based on managements past experience of the industry
and the ability of each cash generating unit to at least maintain its market share as well as stable local and international
economic conditions.
(Continued)
6 |NVLS1MLN1 |N SU8S|D|AkY COMAN|LS
THE COMPANY
2009 2008
Rs000 Rs000
At January 1, 1,423,318 1,415,968
Additions 26,003 7,350
At December 31, 1,449,321 1,423,318
(a) The subsidiary companies are as follows:
Country of Effective Shareholding 2009 Effective Shareholding 2008
Name of Companies Incorporation Direct Indirect Direct Indirect
% % % %
Les Pavillons Resorts Ltd Mauritius 100 - 100 -
Beau Rivage Co Ltd Mauritius 100 - 100 -
Blue Bay Tokey Island Limited Mauritius 100 - 100 -
Poseidon Limite Mauritius 100 - 100 -
Holiday & Leisure Resorts Limited Mauritius 100 - 100 -
La Plantation Limited Mauritius - 100 - 100
Merville Beach Hotel Limited Mauritius - 100 - 100
Merville Limited Mauritius - 100 - 100
MSF Leisure Co Ltd Mauritius - 100 - 100
LTK Ltd Mauritius - 100 - 100
FMM Lte Mauritius - 100 - 100
Naade Resorts (UK) Limited England 100 - 100 -
Naade Resorts Seychelles Ltd Seychelles - 100 - 100
NRTA Ltd Mauritius - 100 - 100
Naade Holidays (Pty) Ltd South Africa 100 - 100 -
SAS Htel Prestige Runion (note (b)) France 100 - 100 -
SA Les Villas Du Lagon Runion Island - 100 - 100
SAS Le Rcif Runion Island - 99 - 99
Ari Atoll Investment Ltd Seychelles - 100 - -
Naade Holidays Ltd Mauritius - 100 - -
Naade Foundation Mauritius 100 - - -
(b) In accordance with SIC 12, Consolidation - Special Purpose Entities, the Company has also consolidated the financial
statements of SNC St Paul and SNC LHermitage even if these entities do not legally belong to the Group. Both entities are
incorporated in Runion Island.
(Continued)
7 |NVLS1MLN1 |N ASSOC|A1LD COMAN|LS
THE GROUP
2009 2008
Rs000 Rs000
At January 1, 218,676 242,968
Additions 143,559 52,000
Share of revaluation reserves - 57,487
Share of results (173,236) (155,018)
Exchange difference (1,860) 21,239
At December 31, 187,139 218,676

Naade Resorts Oceanide
Maldives Ltd Limited
Rs000 Rs000
Share of associates statement of financial position
Assets 1,107,936 768,314
Liabilities (1,144,581) (544,530)
Share of associates revenue and result
Revenue 216,504 101,315
Loss (111,601) (61,635)
Country of incorporation Seychelles Mauritius
Effective indirect shareholding 40% 50%
(a) Naade Resorts Maldives Ltd holds 100% of White Sands Resorts & Spa Private Limited.
(b) A Valuation exercise of Diva hotel was carried out by John Lasalle Hotels in December 2009. They valued the hotel at US $104
million compared to a book value of US $ 59.2 million generating a surplus on revaluation of US $ 44.8 million. The share of
revaluation surplus of NRL would therefore be US $ 17.9 million (Rs 537.6 million).
8 AVAILABLE-FOR-SALE INVESTMENTS
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
At January 1, 32,906 28,111 58 58
Disposal (1,384) - - -
(Loss)/gain in fair value (3,095) 4,795 - -
At December 31, 28,427 32,906 58 58
Available-for-sale investments consist of:
- Quoted shares 28,337 32,816 - -
- Unquoted shares 90 90 58 58
28,427 32,906 58 58
The fair value of quoted ordinary shares (classified as Level 1 as detailed in Note 33(d)) is determined by reference to
published price quotations in an active market at the reporting date. The fair values of unquoted investments approximate
their carrying values. Given the relative immateriality of the value of these unquoted shares, the directors did not provide
any disclosure relating to Level 3 financial instruments as explained in Note 33(d).
(Continued)
9 NON-CURRENT RECEIVABLES
THE GROUP
2009 2008
Rs000 Rs000
Net amount receivable on disposal of assets held for sale (note (a)) 109,551 124,763
Deposit on debentures in associated company (note (b)) 300,000 -
Amount receivable within one year (11,795) (16,013)
Non-current receivable 397,756 108,750
Note (a)
Amount receivable is in respect to disposal of Desroches Island Lodge and represents net present value of cash inflows.
Note (b)
The company is in the process of converting US$ 10 million receivable from the associated company, White Sands Resorts
& Spa Pvt Ltd, into debentures. This amount has been accounted as deposit on debentures.
10 DEFERRED TAX
Deferred income taxes are calculated on all temporary differences under the liability method at 15%/33.33% (2008:
15%/33.33%).
Deferred tax is reflected in the statement of financial position as follows:
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Deferred tax assets (71,953) (71,971) - -
Deferred tax liabilities 337,138 352,527 24,496 26,678
265,185 280,556 24,496 26,678
The movement in the deferred income tax account is as follows:
At January 1, 280,556 149,343 26,678 5,930
Deferred tax on revalued property - 153,220 - 17,631
Recognised in profit or loss (Note 18) (14,743) (21,184) (2,182) 3,117
Exchange difference (628) (823) - -
At December 31, 265,185 280,556 24,496 26,678
(Continued)
10 DEFERRED TAX (Continued)
Deferred income tax at December 31, relates to the following:
THE GROUP
Balance Movement
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Deferred tax liability
Accelerated depreciation 167,751 185,179 (17,428) (3,888)
Revaluation of property, plant & equipment 197,672 197,672 - 148,012
365,423 382,851 (17,428) 144,124
Deferred tax assets
Retirement benefit obligation (2,894) (2,838) (56) (328)
Tax losses of acquired subsidiaries - - - 57,876
Tax losses (94,532) (95,118) 586 (68,002)
Provision for expenses (2,812) (4,339) 1,527 (1,634)
(100,238) (102,295) 2,057 (12,088)
Net deferred tax liabilities 265,185 280,556
Total movement for the year (15,371) 132,036
Recognised as follows:
In profit or loss (Note 18) (14,743) (21,184)
In other comprehensive income - 153,220
Exchange difference (628) -
(15,371) 132,036
Deferred tax assets have not been recognised on tax losses amounting to Rs 340.4 million (2008: Rs 118 million) for the
Group.
(Continued)
10 DEFERRED TAX (Continued)
THE COMPANY
Balance Movement
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Deferred tax liability
Accelerated depreciation 5,032 7,160 (2,128) 43
Revaluation of property, plant &
equipment 19,836 19,836 - 17,631
24,868 26,996 (2,128) 17,674
Deferred tax assets
Retirement benefit obligation (87) (69) (18) (12)
Tax losses - - - 3,122
Provision for expenses (285) (249) (36) (36)
(372) (318) (54) 3,074
Net deferred tax liabilities 24,496 26,678
Total movement for the year (2,182) 20,748
Recognised as follows:
In profit or loss (Note 18) (2,182) 3,117
In other comprehensive income - 17,631
(2,182) 20,748
Deferred tax assets has not been recognised on tax losses amounting to Rs 21.5 million for the Company.
11 RETIREMENT BENEFIT (ASSETS) / OBLIGATIONS
(a) The benefits of employees of the Group fall under three different types of arrangements:
(i) A defined benefit scheme which is funded. The plan assets are held independently by an insurance company;
(ii) A defined contribution scheme; and
(iii) Retirement benefits as defined under the Employment Right Act 2008 and which are unfunded.
(b) The liabilities in respect of the defined benefit obligations (i) and (iii) above are analysed as follows:
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Funded obligation - Asset (note (c - k)) (4,528) (2,256) - -
Unfunded obligation (note (l - o)) 24,483 20,032 585 462
19,955 17,776 585 462
As there is no right of set off in respect of the two above obligations, the amounts have been disclosed separately.
(Continued)
11 RETIREMENT BENEFIT (ASSETS) / OBLIGATIONS (Continued)
(c) The amounts recognised in the statement of financial position in respect of funded obligation are as follows:
THE GROUP
2009 2008
Rs000 Rs000
Present value of funded obligation 58,978 60,605
Fair value of plan assets (59,372) (49,119)
(394) 11,486
Unrecognised actuarial loss (4,134) (13,742)
Asset in the statement of financial position (4,528) (2,256)
Movement in the liability recognised in the statement of financial position:
At January 1, (2,256) 469
Total expenses (note (d)) 6,328 6,875
Contributions paid (8,600) (9,600)
At December 31, (4,528) (2,256)
(d) The amounts recognised in profit or loss are as follows:
Current service cost 4,112 3,824
Interest cost 6,453 6,018
Actuarial gain 558 673
Scheme expenses 336 370
Cost of insuring risk benefits 421 373
Expected return on plan assets (5,552) (4,383)
Total included in staff costs 6,328 6,875
(e) Changes in the fair value of plan assets are as follows:
At January 1, 49,119 37,759
Expected return on plan assets 5,552 4,383
Employers contribution 8,600 9,600
Scheme expenses (336) (370)
Cost of insuring risk benefits (421) (373)
Actuarial losses (2,407) (1,880)
Benefits paid (735) -
At December 31, 59,372 49,119
(f) The main categories of plan assets are as follows:
Local equities 17,812 14,496
Overseas equities 8,906 7,248
Fixed interest 29,685 24,959
Properties 2,969 2,416
Total market value of assets 59,372 49,119
(Continued)
(g) Changes in defined benefit obligation are as follows:
THE GROUP
2009 2008
Rs000 Rs000
At January 1 60,605 53,496
Current service cost 4,112 3,824
Interest cost 6,453 6,018
Actuarial gains (11,457) (2,733)
Benefits paid (735) -
At December 31, 58,978 60,605
(h) Actual and expected return on plan assets.
(i) The actual return on plan assets was Rs 2,407,000 (2008: Rs.2,503,000) for the year ended December 31, 2009.
(ii) The assets of the plan are invested in Anglo Mauritius Deposit Administration Fund. The latter is expected to produce a
smooth progression of return from one year to the next. The breakdown of the assets above corresponds to a notional
allocation of the underlying investments based on the long term strategy of the fund.
As the fund is expected to produce a smooth return, a fairly reasonable indication of the future returns can be obtained
by looking at historical ones. Therefore, the long term expected return on asset assumption has been based on historical
performance of the fund.
In terms of the individual expected returns, the expected return on equities has been based on an equity risk premium
above a risk free rate. The risk free rate has been measured in accordance to the yields on government bonds at
December 31, 2009.
The fixed interest portfolio includes government bonds, debentures, mortgages and cash. The expected return for this
asset class has been based on yields of government bonds at December 31, 2009.
(iii) The expected return on properties has been based on the rate of inflation prevailing at December 31, 2009.
(i) Employers contributions which are expected to be paid are estimated at Rs.7.2m.
(j) The figures in respect of defined benefit obligation for the current and previous four periods are shown below.
Year ended December 31,
2009 2008 2007 2006 2005
Rs000 Rs000 Rs000 Rs000 Rs000
Retirement benefit obligation 58,978 60,605 53,496 46,930 43,365
Fair value of plan assets (59,372) (49,119) (37,759) (27,250) (16,178)
(Surplus)/Deficit (394) 11,486 15,737 19,680 27,187
Unrecognised actuarial loss (4,134) (13,742) (15,268) (16,186) (21,343)
(4,528) (2,256) 469 3,494 5,844
(Continued)
(k) The principal actuarial assumptions used for accounting purposes were:
2009 2008 2009 2008
% % % %
Discount rate 10.0 10.0 - -
Expected rate of return on plan assets 10.5 10.5 - -
Future salary increases 12.0 12.0 - -
(l) The amounts recognised in the statement of financial position in respect of unfunded obligation are as follows:
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Present value of unfunded obligation 24,638 20,267 648 526
Unrecognised actuarial gains (155) (235) (63) (64)
Liability in the statement of financial position 24,483 20,032 585 462
Movement in the liability recognised in the statement of financial position:
At January 1, 20,032 17,293 462 380
Total expenses (note (m)) 4,459 2,711 123 82
Exchange difference (8) 28 - -
At December 31, 24,483 20,032 585 462
(m) The amounts recognised in profit or loss are as follows:
Current service cost 2,200 1,379 63 38
Interest cost 2,179 1,420 59 44
Actuarial loss 80 (88) 1 -
Total included in staff costs 4,459 2,711 123 82
(n) Changes in defined benefit obligation are as follows:
At January 1, 20,267 15,832 526 376
Current service cost 2,200 1,379 63 38
Interest cost 2,179 1,420 59 44
Actuarial gains - 1,608 - 68
Exchange difference (8) 28 - -
At December 31, 24,638 20,267 648 526
(o) The principal actuarial assumptions used for accounting purposes were:
2009 2008 2009 2008
% % % %
Discount rate 10.5 10 10.5 10
Future salary increases 7.5 7.5 7.5 7.5
(Continued)
12 INVENTORIES
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Food and beverages 29,087 24,077 1,192 850
Others 39,583 42,854 955 996
68,670 66,931 2,147 1,846
The inventories are stated at cost and have been pledged as security for bank borrowings. Rs 500,000 of inventories were
written down this year. (2008: Rs 500,000)
13 TRADE AND OTHER RECEIVABLES
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Trade receivables 476,096 513,315 21,788 27,472
Receivable from fellow subsidiaries (note (31)) - - 1,985,872 1,974,136
Receivable from associates (note (31)) 416,231 756,801 19,561 -
Loans receivable from key management
personnel (note (i) & (ii)) 4,648 4,648 4,648 4,648
Other receivables and prepayments 243,490 420,385 8,951 82,420
1,140,465 1,695,149 2,040,820 2,088,676
Less allowances for impairment of receivables (10,181) (7,987) (1,488) (1,248)
1,130,284 1,687,162 2,039,332 2,087,428
(i) Key management personnel include executive directors.
(ii) These loans which are neither past due nor impaired are unsecured and have been properly approved by the Board of
Directors which, pursuant to section 81 of the Companies Act 2001, considers the loans as being in the interests of the
company.
(iii) Trade receivables are not secured, non-interest bearing and are generally on 30 days term. Impairment of receivables have
been assessed on a collective basis only as there were no indications of impairment on an individual basis.
Movements in the allowances for impairment of receivables were as follows:
Rs000 Rs000
At January 1, 2008 5,947 1,008
Charge for the year 2,040 240
At December 31, 2008 7,987 1,248
Charge for the year 2,194 240
Utilised - -
At December 31, 2009 10,181 1,488
(Continued)
13 TRADE AND OTHER RECEIVABLES (Continued)
At December 31, 2009, the ageing analysis of trade receivables is as follows:
THE GROUP
Nether past ast due but not mpared
due nor
Total impaired < 30 days 30 - 60 days 60 - 90 days > 90 days
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2009 476,096 224,944 90,312 50,236 28,088 82,516
2008 513,315 217,909 112,246 47,288 33,194 102,678
THE COMPANY
Nether past ast due but not mpared
due nor
Total impaired < 30 days 30 - 60 days 60 - 90 days > 90 days
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2009 21,788 8,668 4,256 3,364 1,942 3,558
2008 27,472 12,072 8,206 2,484 1,714 2,996
(iv) The Group has subscribed to a credit protection scheme for the current portfolio of Mauritian operations with a Global
Service Provider, with a view to minimise its credit risk exposure.
(v) Other receivables also include a net amount of Rs.98.2 million in respect of the proceeds from the disposal of the interest in
Les Croles. This amount represents the present value of the following cash flows:
Euro
June 2010 1,000,000
December 2010 1,285,000
(vi) Other receivables and receivables from associates are neither past due nor impaired. No collaterals are held in respect of
those receivables.
14 |SSULD CA|1AL
THE GROUP AND THE COMPANY
2009 2008
Rs000 Rs000
Authorised, Issued and Fully paid
Ordinary shares of Rs 10 each. 862,568 862,568
Number of shares 86,256,873 86,256,873
Treasury shares 2009 2008
Number of shares Units 287,000 287,000
Value Rs000 18,081 18,081
(Continued)
15 OTHER RESERVES
THE GROUP
Foreign
Reserve in Cash Flow Asset Currency
Associated Hedging Revaluation Fair value Translation
Company Reserve Reserve Reserve Reserve Total
Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
At January 1, 2008 - - 267,133 6,870 (14,661) 259,342
Revaluation of property,
plant and equipment - - 1,294,351 - - 1,294,351
Deferred tax on revalued asset - - (153,220) - - (153,220)
Cash flow hedging on loan
in foreign currency - (37,000) - - - (37,000)
Share of reserve in associated company 57,487 - - - - 57,487
Currency translation difference - - - - 39,387 39,387
Gain on fair value of
available-for-sale investment - - - 4,795 - 4,795
At December 31, 2008 57,487 (37,000) 1,408,264 11,665 24,726 1,465,142
Cash flow hedging on loan in
foreign currency - 28,900 - - - 28,900
Hedge reserve realised on
repayment of borrowing - 500 - - - 500
Currency translation difference - - - - (11,308) (11,308)
Realised on disposal of
available-for-sale investment - - - (544) - (544)
Loss on fair value of
available-for-sale investment - - - (3,095) - (3,095)
At December 31, 2009 57,487 (7,600) 1,408,264 8,026 13,418 1,479,595
Nature and purpose of other reserves
Reserve in associated company
This reserve records the share of revaluation reserve in the associated company.
Cash flow hedging reserve
This reserve records the effective portion of the gain or loss on the hedging instruments in cash flow hedges. The movement
for the year is in respect of exchange difference on conversion of loan in US$ at year end rate and also with respect to the
portion of exchange difference reserve realised on repayment of borrowings.
Asset revaluation reserve
The asset revaluation reserve is used to record increases in the fair value of land and buildings (net of deferred tax on
the revalued asset) and decreases to the extent that such decreases relates to an increase on the same asset previously
recognised in equity.
Fair value reserve
This reserve records fair value changes on available-for-sale financial assets and represents net unrealised gains. The
movement for the year includes the portion of fair value reserve realised on dispsoal of available-for-sale investment
transferred to profit or loss for the year.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of financial
statements of foreign subsidiaries and associates. It is also used to record the hedging of net investments in foreign
operations.
(Continued)
16 INTEREST BEARING LOANS AND BORROWINGS
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Current
Bank loans (note (a)) 994,697 1,145,324 626,125 751,448
Finance leases (note (b)) 6,936 6,816 - 177
Other loans (note (c)) 7,525 7,613 - -
Bank overdrafts (note 26(b)) 449,372 601,516 272,437 256,456
1,458,530 1,761,269 898,562 1,008,081
Non-current
Bank loans (note (a)) 3,036,281 2,596,085 336,558 155,135
Finance leases (note (b)) 10,641 17,239 - -
3,046,922 2,613,324 336,558 155,135
Total borrowings 4,505,452 4,374,593 1,235,120 1,163,216
(a) Bank loans can be analysed as follows:-
Within one year 994,697 1,145,324 626,125 751,448
After one year and before two years 615,287 515,607 88,985 67,062
After two years and before five years 1,307,937 1,206,680 151,323 88,073
After five years 1,113,057 873,798 96,250 -
4,030,978 3,741,409 962,683 906,583
Effective Maturity 2009 2008 2009 2008
Denomination interest rate (%) Rs000 Rs000 Rs000 Rs000
MUR 9.15% - 10.00% Dec 2014 1,280,378 807,563 520,933 95,833
EURO EURIBOR + 1.35% Jul 2013 96,750 128,325 96,750 128,325
EURO 5.76% Dec 2017 105,140 116,540 - -
EURO 5.68% Oct 2012 85,923 105,106 - -
EURO OAT + 1.40% Oct 2017 36,683 40,600 - -
EURO EURIBOR + 2.00% Oct 2012 46,440 62,640 - -
EURO EURIBOR + 1.60% Dec 2017 96,386 110,313 - -
EURO 3.75% Dec 2014 272,158 297,164 - -
EURO EURIBOR + 1.40% Dec 2014 170,173 201,733 - -
EURO EURIBOR + 1.30% Dec 2019 309,115 - - -
MUR 9.25% - 10.00% July 2016 800,000 800,000 - -
US$ LIBOR + 1.25% - 1.5% Sept 2015 357,000 389,000 - -
US$ LIBOR + 1.25% - 1.5% At call 30,000 96,000 30,000 96,000
EURO EURIBOR+1.25% - 1.5% At call 223,332 262,625 193,500 262,625
MUR 9.15% - 10% At call 121,500 323,800 121,500 323,800
4,030,978 3,741,409 962,683 906,583
(Continued)
16 INTEREST BEARING LOANS AND BORROWINGS (Continued)
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
(b) Finance lease liabilities - minimum lease payments:
Within one year 8,602 9,236 - 189
Later than one year and not later than two years 7,699 9,244 - -
Later than two years and not later than five years 4,162 10,853 - -
20,463 29,333 - 189
Future finance charges on finance leases (2,886) (5,278) - (12)
Present value of finance lease liabilities 17,577 24,055 - 177
The present value of finance lease liabilities may be analysed as follows:
Within one year 6,936 6,816 - 177
Later than one year and not later than two years 6,706 7,490 - -
Later than two years and not later than five years 3,935 9,749 - -
17,577 24,055 - 177
Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default. The rate
of interest on the lease vary between 10% to 11.5%.
(c) Other loans include non-secured short term Euro loan payable at call bearing an annual interest rate of 3%.
17 1kADL AND O1HLk AYA8LLS
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Trade payables 205,764 227,760 4,380 2,732
Amount payable to fellow subsidiaries (note (31)) - - 938,522 780,422
Amount payable to associates (note (31)) - - - 31,374
Government grants 45,813 21,354 - -
Other payables and accruals 403,717 500,160 75,816 96,104
655,294 749,274 1,018,718 910,632
Trade and other payables are non-interest bearing and are normally settled on 60-days term.
(Continued)
18 TAXATION
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
(a) Charge for the year
Current tax on the adjusted profit for the
year at 15%/33.33% (2008: 15%/33.33%) 19,367 27,287 - 549
Adjustment for Alternative Minimum Tax 522 2,101 - 2,101
(Over)/under provision in previous year (2,755) (938) 109 -
National Residential Property Tax 18 - 10 -
Deferred taxation movement (note (10)) (14,743) (21,184) (2,182) 3,117
Income tax expense/(credit) 2,409 7,266 (2,063) 5,767
(b) Reconciliation between tax expense and accounting profit is as follows:
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
(Loss)/profit before tax (365,071) 277,037 (47,979) 622,837
Less: Exceptional items - 300,884 - -
(365,071) (23,847) (47,979) 622,837
Tax calculated at a rate of 15%/33.33% (2008: 15%/33.33%) (54,761) (3,577) (7,197) 93,426
Effect of different tax rates (2,834) (29,635) - -
Alternative Minimum Tax adjustment 522 2,101 - 2,101
Expenses not deductible for tax purposes 3,268 4,653 2,184 2,027
Expenses qualifying for double relief (21,605) (21,559) (392) (387)
(Over)/under provision of tax in previous year (2,754) (938) 109 -
Over provision of deferred tax in previous year (8) (3,974) - (1,398)
Tax losses not recognised 51,054 39,474 3,223 -
Tax effect of share of results from associates 25,985 23,253 - -
Other adjustments 3,750 (1,375) - -
Income not subject to tax (226) (1,157) - (90,002)
National Residential Property Tax 18 - 10 -
Income tax expense/(credit) 2,409 7,266 (2,063) 5,767
(c) Different tax rates arise on the taxation of foreign units located in Runion Island, Seychelles, UK and South Africa.
(d) Statement of financial position
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
At January 1, 49,391 50,592 2,650 -
Provision for the year (note (a)) 19,907 29,388 10 2,650
(Over)/under provision in prior year (note (a)) (2,755) (938) 109 -
Paid during the year (45,763) (29,651) (2,759) -
Exchange difference (51) - - -
At December 31, 20,729 49,391 10 2,650
(Continued)
19 DIVIDENDS
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Balance at January 1, 85,970 - 85,970 -
Ordinary dividend of Rs.0.50
(2008: Rs 2.00) per share 42,985 171,940 42,985 171,940
Less amount paid during the year (128,955) (85,970) (128,955) (85,970)
Amount due at December 31, - 85,970 - 85,970
20 FINANCE REVENUE
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Interest income 38,080 20,043 108,054 115,996
21 LMLOYLL 8LNLI|1S LXLNSL
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Wages and salaries 735,403 689,681 16,845 16,083
Social security costs 65,682 60,628 862 768
Pension costs - Defined contribution scheme 10,786 8,395 513 723
Defined benefit scheme 6,328 7,689 - -
Other retirement benefit 4,459 2,711 123 82
822,658 769,104 18,343 17,656
(Continued)
22 OLkA1|NG kOI|1
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
(a) The operating profit is arrived at after
crediting:
Profit on disposal of property, plant and equipment - 305 - -
Investment income 1,504 656 - 600,013
Gain on exchange - 77,892 - -
and charging:
Depreciation of property, plant and equipment 227,388 162,622 7,384 7,799
Amortisation of intangible assets 10,893 9,690 490 621
Loss on disposal of property, plant and equipment 1,823 7,437 57 -
Loss on exchange 4,897 4,503 3,364 4,503
Cost of inventories recognised as expense 418,152 426,015 11,725 10,450
Operating lease payments recognised as expense 29,582 23,076 1,504 735
(b) Depreciation and amortisation
Depreciation of property plant and equipment (note (4)) 227,388 162,622 7,384 7,799
Amortisation of intangible asset (Note (5)) 10,893 9,690 490 621
238,281 172,312 7,874 8,420
(c) Other operating expenses
Marketing expenses 238,213 243,127 5,017 4,448
Heat light and power 136,678 124,512 4,284 3,874
Repairs and maintenance 52,143 45,377 2,120 1,356
Others 220,264 260,941 17,198 15,755
647,298 673,957 28,619 25,433
23 FINANCE COSTS
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Interest expense on:
- Bank overdrafts 34,102 19,032 14,667 1,900
- Bank loans 281,430 174,070 84,039 57,105
- Finance leases 2,470 2,661 12 30
- Other loans and payables 6,537 220 57,651 38,896
324,539 195,983 156,369 97,931
(Continued)
24 LXCL1|ONAL |1LMS
THE GROUP
2009 2008
Rs000 Rs000
The exceptional items consist of the following:
Negative goodwill arising on purchase of minority in HPR - 73,700
Gain on disposal of shares in associated company - 55,170
Loss on disposal of Villas Les Croles - (14,939)
Bargain purchase of shares in Special Purpose Vehicle - 201,653
Adjustments for already expired lease rentals - (14,700)
- 300,884
25 (LOSS)/LAkN|NGS Lk SHAkL
THE GROUP
2009 2008
Rs000 Rs000
(Loss)/Profit attributable to equity holders of the parent (367,480) 276,405
Number of ordinary shares ranking for dividends 86,256,873 86,256,873
Adjustment for treasury shares (287,000) (287,000)
Weighted average number of ordinary shares for basic earnings per share 85,969,873 85,969,873
(Loss)/Earnings per share (Basic and Diluted) Rs. (4.27) 3.22
Basic earnings per share are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent
by the weighted average number of ordinary shares outstanding during the year. The weighted average number of shares
takes into account the treasury shares as at year end.
(Continued)
26 NOTES TO THE STATEMENTS OF CASH FLOWS
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
(a) Cash from operations
(Loss)/profit before taxation (365,071) 277,037 (47,979) 622,837
Adjustments for:
- Share of results of associates 173,236 155,018 - -
- Exceptional items - (300,884) - -
- Foreign exchange differences (6,916) 31,772 (2,974) 8,500
- Depreciation and amortisation 238,281 172,312 7,874 8,420
- Loss on disposal of property, plant and equipment 1,823 7,437 57 -
- Retirement benefit obligations 2,187 14 123 82
- Interest income (38,080) (20,043) (108,054) (115,996)
- Interest expense 324,539 195,983 156,369 97,931
- Investment income (1,504) (656) - (600,013)
328,495 517,990 5,416 21,761
Changes in working capital:
- Inventories (1,739) (162) (301) 624
- Trade and other receivables 124,313 122,279 48,096 (568,749)
- Trade and other payables (93,980) 115,697 108,086 (744,569)
Cash generated from operations 357,089 755,804 161,297 (1,290,933)
(b) Cash and cash equivalents
Cash and short term deposits 124,487 286,226 69,076 40,985
Bank overdrafts (Note 16) (449,372) (601,516) (272,437) (256,456)
(324,885) (315,290) (203,361) (215,471)
(c) Non-cash transactions
Property, plant and equipment
Part of the acquisition of property, plant and equipment
was financed by finance leases as follows:
Total amount acquired (Note 4) 218,581 1,652,245 2,053 6,806
Financed by cash (218,581) (1,646,342) (2,053) (6,806)
Amount financed by finance leases - 5,903 - -
27 CONTINGENT LIABILITIES
At December 31, 2009, the Group had the following contingent liabilities:
(a) Bank guarantees of Rs.812.7 million (2008: Rs.860.1 million) given on behalf of a subsidiary and an associate arising in the
ordinary course of business from which it is anticipated that no material losses will arise.
(b) Legal claims of Rs. 100 million (2008: Rs. 62.9 million) have been lodged against the Group in the Courts of Mauritius arising
from claims mainly in respect of termination of employment or contracts. The directors have been advised that some claims
appear unfounded and that the severance allowance/damages claim in others appear grossly exaggerated. The company has
also entered into counter proceedings for an amount of Rs.76 million.
(Continued)
28 SLGMLN1AL kLOk1|NG
Primary segment - Business
The Groups reportable segment has not changed with the adoption of IFRS 8. Internal reports reviewed by the Chief
Internal Decision maker in order to allocate resources to the segments and to assess their performance comprise of the
hotel segment and the non-hotel segment. The non-hotel segment remains insignificant (i.e less than 10%) both in terms of
revenue and trading results compared to the Group. The Directors therefore consider that there is no relevance in disclosing
segmental information at this level.
Secondary segment - Geographical
The contribution of the hotel units in Runion Island via Hotel Prestige Runion for the year 2009 is more than 10% in terms
of revenue and the following disclosures are made with respect to operations in Reunion Island.
Mauritius Reunion Total
Rs000 Rs000 Rs000
For the year ended December 31, 2009
Segment revenue 1,855,408 534,930 2,390,338
Segment result before finance charges 279,933 (147,229) 132,704
Segment assets 6,676,493 2,129,538 8,806,031
Capital expenditure 33,546 185,035 218,581
For the year ended December 31, 2008
Segment revenue 1,899,199 571,352 2,470,551
Segment result before finance charges 399,768 (72,614) 327,154
Segment assets 7,010,691 2,280,043 9,290,734
Capital expenditure 1,227,613 424,632 1,652,245
29 CA|1AL COMM|1MLN1S
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Authorised by directors but not yet
contracted for 66,125 28,000 5,908 700
Redevelopment of Les Villas du Lagon - 151,163 - -
66,125 179,163 5,908 700
(Continued)
30 OLkA1|NG LLASL COMM|1MLN1S
The properties leased by the Group are long term leases with renewal option included in the contracts.
Future minimum rentals payable under these leases as at December 31, are as follows:
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Within one year 21,992 17,287 1,506 1,318
After one year but not more than five years 117,208 118,031 8,122 7,447
More than five years 1,999,114 173,209 118,679 12,652
2,138,314 308,527 128,307 21,417
The lease commitments in 2009 take into consideration the revised rentals as per Finance Act.
31 kLLA1LD Ak1Y 1kANSAC1|ONS
Related party transactions are as follows:
THE GROUP
2009 2008
Rs000 Rs000

Amounts payable to
Entities over which directors have control/significant influence 1,919 3,873
Amounts receivable from
Associated companies 716,231 756,801
812,981 899,698
Loan to key management personnel (note (a)) 4,648 4,648
Purchases of goods or services
Sales of goods or services
Management fees receivable
Interest receivable
Compensation to key management personnel (note (b)) 32,777 48,249
Disposal of asset held for sale
Entities over which directors have control/significant influence - 164,648
(Continued)
31 kLLA1LD Ak1Y 1kANSAC1|ONS (Continued)
Related party transactions are as follows:
THE COMPANY
2009 2008
Rs000 Rs000
Purchases of goods or services
Interest receivable
Group companies 123,475 105,193
Interest payable
Associated companies - 1,721
69,875 40,617
Amounts receivable from
Group companies 1,985,872 1,974,136
Associated companies 19,561 -
2,005,433 1,974,136
Amounts payable to
Associated companies - 31,374
Entities over which directors have control/significant influence 563 354
939,085 812,150
Loan to key management personnel (note (a)) 4,648 4,648
(a) The loan to key management personnel is unsecured and was granted for acquiring shares in the company. It bears interest
at bank Prime Lending Rate (PLR) less 300 basis points and is repayable by 2012.
(b) Key management personnel includes executive directors and top level management personnel. The compensation includes
short-term employee benefits only.
(c) Amount due to and receivable from group companies are unsecured and bears interest at PLR less 300 basis points. Settlement
occurs in cash and there is no fixed repayment terms. There has been no impairment of amount due to and receivable from
related parties.
(d) Amount due from associated company denominated in MUR bears interest at PLR while amount denominated in USD bears
interest at LIBOR + 1.5%.
(e) The remaining transactions have been made at arms length, on normal commercial terms and in the normal course of
business.
32 UL1|MA1L HOLD|NG COMANY
The directors regard Compagnie DInvestissement et de Dveloppement Lte, incorporated in Mauritius, as the ultimate
(Continued)
33 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
(a) Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Group manages its capital structure and makes adjustment to it, in light of changes in economic conditions. In order to
maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares or sell assets to reduce debt. No changes were made in the objectives, policies or processes
during the years ended December 31, 2009 and December 31, 2008.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus debt. The Groups policy is
to keep the gearing ratio below 60%. The Group includes within net debt, interest bearing loans and borrowings, less cash in
hand and at bank. Total capital is calculated as equity as shown in the statement of financial position less net unrealised
reserves. The gearing ratios at December 31, 2009 and December 31, 2008 were as follows:
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Debt (i) 4,505,452 4,374,593 1,235,120 1,163,216
Cash in hand and at bank (124,487) (286,226) (69,076) (40,985)
Net debt 4,380,965 4,088,367 1,166,044 1,122,231
Equity (ii) 3,249,091 3,659,556 1,514,069 1,602,970
Total capital plus debt 7,630,056 7,747,923 2,680,113 2,725,201
Gearing ratio 57% 53% 44% 41%
(i) Debt is defined as long and short term borrowings, as detailed in note 16.
(ii) Equity includes all capital and reserves of the Group excluding unrealised reserves.
(b) Categories of financial instruments
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Financial assets
Available-for-sale financial assets 28,427 32,906 58 58
Loans and receivables (including cash and cash equivalents) 1,634,821 1,907,231 2,107,947 2,110,018
1,663,248 1,940,137 2,108,005 2,110,076
Trade and other payables 590,558 661,662 1,018,024 889,957
Borrowings 4,505,452 4,374,593 1,235,121 1,163,216
5,096,010 5,036,255 2,253,145 2,053,173
At the reporting date there are no significant concentrations of credit risk for loans and receivables. The carrying amount
reflected above represents the Groups maximum exposure to credit risk for such loans and receivables.
(Continued)
33 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Continued)
(c) Financial risk management
The Groups Corporate Treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations of the Group . These risks include
market risk (including currency risk, fair value interest risk and price risk), credit risk, liquidity risk and cash flow interest rate
risk.
The Groups overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on Groups financial performance. The Board of Directors reviews and agrees policies for managing
each of these risks which are summarised below.
(i) Foreign currency risk management
The Group has transactional currency exposure. It is the practice in the hospitality industry to fix tariffs yearly in advance. In
order to achieve stability of tariffs in the overseas markets and as a hedge against a fall in the value of the Mauritian Rupee,
contracts with tour operators are denominated in the major international currencies of the markets in which the foreign
tour operators belong.
A significant number of contracts are therefore denominated in Euros, Pounds Sterling and US Dollars and invoices are
raised in these currencies, with above 90% of Groups sales denominated in Euro and Pound Sterling. While protecting the
enterprise against any fall in the parity of the Mauritian Rupee, it exposes it to a fall in revenue should the Rupee appreciate
against one or more of the international currencies.
Management also tries to minimise effects of changes in exchange rates by entering in forward contracts. The Group
has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency
exposure arising from the net assets of the Groups foreign operation is managed primarily through borrowings denominated
in the relevant foreign currencies.
The currency profile of the financial assets and financial liabilities, excluding equity investments in subsidiaries and associates
and retirement benefit obligations, at 31 December 2009 and 2008 is as follows:
Financial Financial Financial Financial
assets liabilities assets liabilities
Rs000 Rs000 Rs000 Rs000
2009
Euro 660,835 1,621,216 164,891 292,105
Pound Sterling 141,155 1,238 28,161 -
US Dollar 708,072 330,000 - 30,000
Other foreign currencies 8,332 13,595 - -
Total foreign currencies 1,518,394 1,966,049 193,052 322,105
Mauritian Rupee 144,854 3,129,961 1,914,953 1,931,040
Total 1,663,248 5,096,010 2,108,005 2,253,145
2008
Euro 903,072 1,673,002 140,851 344,425
Pound Sterling 140,135 546 5,429 -
US Dollar 532,384 453,826 4,660 64,000
Other foreign currencies 43,590 7,788 4,155 -
Total foreign currencies 1,619,181 2,135,162 155,095 408,425
Mauritian Rupee 320,956 2,901,093 1,954,981 1,644,748
Total 1,940,137 5,036,255 2,110,076 2,053,173
(Continued)
(c) Financial risk management (Continued)
(i) Foreign currency risk management (Continued)
The following table details the Groups sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign
currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel
and represents managements assessment of the reasonably possible change in foreign exchange rates. The sensitivity
analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period
end for a 5% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign
operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or
the borrower. A positive number below indicates an increase in profit and equity where the Rupee depreciates 5% against
the relevant currency. There would be an equal and opposite impact on the profit and other comprehensive income, if the
rupee strengthens by 5% against the relevant currency.
Sensitivity Analysis
LUkO |MAC1
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Profit or loss 7,442 881 (6,360) (10,179)
Other comprehensive income 7,045 17,802 - -
G8 |MAC1
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Profit or loss 5,529 7,006 1,408 271
Other comprehensive income - - - -
US DOLLAk |MAC1
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Profit or loss 36,778 23,428 (1,500) (2,967)
Other comprehensive income (17,850) (28,954) - -
The impact on other comprehensive income of a change in rate of Euro vis--vis the Mauritian Rupee is attributable mainly
to net investment in the subsidiary in Runion Island and also to the hedge reserve arising on hedge accounting of Euro loan.
(Continued)
(ii) Interest rate risk management
The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating interest rates. The
risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings.
The Group analyses its interest rate exposure on a dynamic basis. The Group considers various scenarios in assessing its
interest rate exposure, including refinancing, renewal of existing facilities, alternative financing and hedging. Based on these
scenarios, the Group calculates the sensitivity of the Groups profit before tax to a defined interest rate shift. The scenarios
are run only for liabilities that represent the major interest-bearing positions.
The interest rate profile of the Group at 31 December 2009 was:
Financial assets
Balances Trade
with banks debtors
Interest rate Interest rate
% %
GBP LIBOR-1% Nil
EURO EURIBOR-1% Nil
USD LIBOR-1% Nil
MUR PLR - 3% Nil

Bank
overdrafts Loans
Floating Fixed Floating
interest rate interest rate interest rate
% % %
GBP N/A Nil N/A
EURO N/A 3.78% & 5.68% EURIBOR + 1.3% - 2%
USD N/A Nil LIBOR +1.25% - 1.5%
MUR Nil PLR & PLR + 0.25%
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates for both derivatives and non-
derivatives instruments at the Reporting sheet date. For floating rate liabilities, the analysis is prepared assuming the
amount of liability outstanding at the Reporting sheet date was outstanding for the whole year. A 100 basis point increase
or decrease is used when reporting interest rate risk internally to key management personnel and represents managements
assessment of the reasonably possible change in interest rate.
(Continued)
Interest rate sensitivity analysis (Continued)
If interest rates had been 50 basis points higher for MUR borrowings and 0.25 basis points for EURO borrowings impact will
be as follows:
LUkO |MAC1
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Profit or loss 3,623 3,164 726 640
MAUk|1|AN kULL |MAC1
2009 2008 2009 2008
Rs000 Rs000 Rs000 Rs000
Profit or loss 9,453 11,831 (512) 1,490
A decrease in interest rate by 50 basis points of MUR borrowings and by 25 basis points for EURO borrowings will have an
equal and opposite impact of an increase in the interest rate as shown above.
(iii) Other price risks
The Group is exposed to equity price risks arising from equity investments which are not material in any case. Equity
investments are held for strategic rather than trading purposes. The Group does not actively trade these investments.
(iv) Credit risk management
The Groups credit risk is primarily attributable to its trade receivables. The amounts presented in the statement of financial
position are net of allowances for credit losses, estimated by the Groups management based on prior experience and the
current economic environment.
The Group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and
customers. The Group has policies in place to ensure that sales of products and services are made to customers with an
appropriate credit history. The Group has subscribed to a credit protection scheme for the client portfolio of Mauritius
operations with a Global Service Provider, with a view to minimise its credit risk exposure. As far as operations in Runion
Island is concerned management makes full allowance for credit losses for amounts past due for more than one year. The
maximum exposure of the Group is the carrying amount as disclosed in Note 13.
With respect to credit risk arising from other financial assets of the Group, which comprise of cash and cash equivalents,
available-for-sales financial instruments, other receivables, the Groups exposure to credit risk arises from default of the
counterparty, with a maximum exposure equal to the carrying amount of these instruments.
(Continued)
(v) Liquidity risk management (Continued)
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate
amount of committed credit facilities. The Group aims at maintaining flexibility in funding by keeping reliable credit lines
available.
The Groups objective is to maintain a flexibility between continuity of funding and flexibility through the use of bank
overdraft, bank loans and finance leases.
Liquidity and interest risk tables - financial liabilities - undiscounted
THE GROUP
Weighted
average
effective
interest Less than 1 to 3 3 months 1 to 5 More than
rate 1 month months to 1 year years 5 years Total
% Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2009
Non-interest bearing - 278,646 91,342 220,570 - - 590,558
Variable interest rate
instruments 7.42% 1,031,897 110,940 313,775 1,776,639 822,779 4,056,030
Fixed interest rate
instruments 5.68% 892 892 1,799 156,445 292,278 452,306
1,311,435 203,174 536,144 1,933,084 1,115,057 5,098,894
2008
Non-interest bearing - 158,381 376,486 105,441 21,354 - 661,662
instruments 3.40% 601,516 10,524 1,164,687 1,536,877 610,678 3,924,282
Fixed interest rate
instruments 5.68% 4,103 13,742 41,223 219,860 176,661 455,589
764,000 400,752 1,311,351 1,778,091 787,339 5,041,533
At 31st December 2009, the Group has financial liability of Rs 2.1 billion maturing within less than one year and financial
assets of Rs 1.2 billion maturing during the course of 2010. The Group has agreed with its lead bankers for a moratory period
of 6 months for repayments as well as a reschedulement of the existing loan facilities over an extended period. Refer to note
34, for further details.
(Continued)
THE COMPANY
Weighted
average
effective
% Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2009
Non-interest bearing 79,503 - - - - 79,503
instruments 7.00% 914,187 10,421 983,426 169,358 96,250 2,173,642
993,690 10,421 983,426 169,358 96,250 2,253,145
2008
instruments 5.00% 256,456 811,836 751,598 155,135 - 1,975,025
334,616 811,836 751,598 155,135 - 2,053,185
(Continued)
The following table details the Groups expected maturity for its non-derivative financial assets. The tables below have been
drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on
those assets except where the Group anticipates that the cash flow will occur in a different period.
Liquidity and interest risk tables - financial assets - undiscounted
THE GROUP
Weighted
average
effective
% Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2009
Non-interest bearing 710,784 11,795 98,255 126,183 - 947,017
instruments 5.30% - - 416,231 300,000 - 716,231
710,784 11,795 514,486 426,183 - 1,663,248
2008
Non-interest bearing 952,984 43,500 160,645 108,750 - 1,265,879
instruments 2.50% 39,307 - 761,449 - - 800,756
992,291 43,500 922,094 108,750 - 2,066,635
THE COMPANY
Weighted
average
effective
% Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2009
Non-interest bearing 122,075 - - 58 - 122,133
instruments 5.00% - - 1,985,872 - - 1,985,872
122,075 - 1,985,872 58 - 2,108,005
2008
instruments 5.80% 39,307 - 1,974,136 - - 2,013,443
135,940 - 1,974,136 - - 2,110,076
(Continued)
(d) Fair value of financial instruments
Except where stated elsewhere, the carrying amounts of the Groups and the Companys financial assets and financial
liabilities approximate their fair values due to the short-term nature of the balances involved.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on
observable market data.
34 FINANCIAL RESTRUCTURE
Feeling the full impact of the financial crisis, Groups result have been severely affected with a loss for the year of Rs
367.5m(2008: profit of Rs269.8m). This is principally due to poor overall performance more particularly from its associates,
White Sands Resorts and Spa Pvt Ltd (WSR) and Nereide Ltd and also high level of finance costs incurred. This has significantly
affected the cash flow position of the group. As at 31 December 2009, the Group showed a net current liability amounting to
Rs 656.2m. The Board and the management team, with the support of Compagnie DInvestissement et de Developpement
Ltee (CIDL), its ultimate holding company, have proactively initiated negotiations with its Lead Bankers to ensure that
the Group is in a position to meet all its financial commitments to its lenders. To-date full support of the Lead banks to
reschedule the payment terms of existing loans have been obtained with their Common Term Sheet signed on 30 March
2010. The directors therefore consider it appropriate to prepare the financial statements on a going concern basis.
Restructuring plan
The Board of Directors has approved on 30 March 2010 a financial restructuring plan for the Group. The key objective of the
restructuring plan is to enable the Group to meet all its financial commitments with all financial institutions. The financial
restructuring plan has already been agreed with the Groups Lead Bankers, namely the Mauritius Commercial Bank, Barclays
Bank and the State Bank of Mauritius with the Common Term Sheet signed on 30 March 2010. The key features of the
agreed restructuring plan with the Lead Banks are summarized as follows:
i A moratorium period of six months from the Lead Banks until end of July 2010 in respect of all capital repayments;
ii Rs300m overdraft facilities granted to address current working capital requirements (half of which has already been drawn);
iii Naade Resorts Ltd will proceed with a Rights Issue for a total consideration of Rs 450m on or before 31
st
July 2010, subject
to the approval of the relevant authorities and its shareholders. The Rights Issue price and the ratio of the number of
new ordinary shares, to be issued for existing shares, will be determined by the Board. Compagnie DInvestissement et de
Dveloppement Limite (CIDL), the ultimate Holding Company of NRL, has agreed to underwrite the proposed Rights Issue.
iv White Sands Resort and Spa Pvt Ltd (WSR), the company owning and operating DIVA hotel in the Maldives, an associate
of NRL at 40%, will carry out a reorganisation of its capital followed by a Rights Issue of US$ 13m to its shareholders. The
Rights Issue of WSR is subject to the approval of its shareholders and will be underwritten by NRL. Following the capital
reorganisation and the Rights Issue of WSR, the latter will become a subsidiary of NRL.
v The Group is considering several other funding alternatives to raise an additional net amount Rs 500m by June 2011;
vi The lead Banks have given their consent to reschedule their existing loan facilities over a longer period, under defined terms
and conditions.
The proposed restructuration plan mentionned above represents a total cash inflow of some Rs 1 billion by June 2011, which
will be used mainly to reduce the Groups indebtedness. The Directors are confident that the cash inflow and the initiatives
taken to improve sales and EBITDA margin will improve the Group profitability.
(Continued)
34 FINANCIAL RESTRUCTURE (Continued)
Impact of financial restructure
Upon reschedulement of the existing loan facilities, the terms of repayment as set out in Note 16 will be as follows for the
year 2009:
Loans repayable
2009 2008
Rs000 Rs000
Within one year 316,000 100,621
After one year and before two years 423,000 120,745
After two years and before five years 1,558,000 362,235
After five years 1,733,978 379,082
4,030,978 962,683
Furthermore, the liquidity and interest rate risks table as presented in note 33 with respect to financial liabilities would be
as follows:
THE GROUP
Weighted
average
effective
% Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2009
Non-interest bearing - 278,646 91,342 220,570 - - 590,558
instruments 7.42% 456,897 2,761 318,256 1,836,416 1,441,700 4,056,030
Fixed interest rate
instruments 5.68% 892 892 1,799 156,445 292,278 452,306
736,435 94,995 540,625 1,992,861 1,733,978 5,098,894
Financial liabilities of the group falling due within one year would be Rs 1.3billion compared to Rs 2.1billion previously.
THE COMPANY
Weighted
average
effective
% Rs000 Rs000 Rs000 Rs000 Rs000 Rs000
2009
Non-interest bearing - 79,503 - - - - 79,503
instruments 7.00% 272,437 - 1,039,143 482,980 379,082 2,173,642
351,940 - 1,039,143 482,980 379,082 2,253,145
(Continued)
35 FINANCIAL SUMMARY
(a) THE GROUP
2009 2008 2007 2006
Rs000 Rs000 Rs000 Rs000
Non-current assets 7,482,590 7,250,415 4,323,881 2,969,814
Current assets (note (i)) 1,323,441 2,040,319 1,292,019 841,586
Issued capital 862,568 862,568 862,568 862,568
Share premium account 194,386 194,386 194,386 194,386
Treasury Shares (18,081) (18,081) - -
Revaluation and other reserves 1,479,595 1,465,142 259,342 298,483
Current liabilities (note (i)) 2,134,553 2,645,904 1,336,093 708,566
Non-current liabilities 3,408,543 2,985,883 1,971,099 1,002,455
Retained earnings 744,467 1,154,932 1,050,467 744,942
Revenue 2,390,338 2,470,551 2,413,767 2,067,468
(Loss)/Profit before taxation (365,071) 277,037 708,005 586,521
(Loss)/Profit attributable to equity holders of the parent (367,480) 276,405 564,296 510,689
Dividends 42,985 171,940 258,771 207,016
(i) Excludes assets and liabilities directly associated with assets held for sale.
(Continued)
35 FINANCIAL SUMMARY (Continued)
(b) THE COMPANY
2009 2008 2007 2006
Rs000 Rs000 Rs000 Rs000
Non-current assets 1,682,443 1,662,319 1,538,245 1,530,149
Current assets 2,110,555 2,130,259 1,582,150 639,962
Issued capital 862,568 862,568 862,568 862,568
Share premium account 194,386 194,386 194,386 194,386
Treasury shares (18,081) (18,081) - -
Revaluation reserves 114,462 114,462 13,884 13,884
Retained earnings 360,734 449,635 4,505 21,201
Current liabilities 1,917,290 2,007,333 1,838,337 936,176
Non-current liabilities 361,639 182,275 206,715 141,896
Revenue 183,587 788,547 388,150 333,292
(Loss)/Profit before taxation (47,979) 622,837 238,888 223,443
(Loss)/Profit after taxation (45,916) 617,070 242,075 221,367
Dividends 42,985 171,940 258,771 207,016
Directors Profiles
Jean-Claude Bga
Born in 1963 and Fellow of the Association of Chartered
Certified Accountants, joined Groupe Mon Loisir in March
1997, where he currently holds the position of Finance
Executive. He also acts as Director of a number of corporations
operating in the Financial Sector and as member of various
Management, Investment and Audit Committees.
He was appointed as Director of the Company and as member
of the Audit Committee in June 2004.
Jean-au| Chasteau de 8a|yon
Born in 1950, he is a member of the Chartered Insurance
Institute (C.I.I.) from UK, of the Association of Company
Secretaries of Mauritius and a Fellow of Mauritius Institute
of Directors (M.I.o.D). He joined Swan Insurance in 1969 and
is currently Director and Company Secretary of Swan Group
Corporate Services Limited. He is a Council Member of the
Mauritius Chamber of Commerce and Industry as well as the
Chairperson of the sub-committee of the Insurers Association
on issues linked to the World Trade Organisation. He acts as
director of a number of Companies.
He was appointed as Alternate Director to Jean de Fondaumire
from June 2004 to December 2006, reappointed as Alternate
Director to Louis Rivalland from 23rd March 2007 to 30th
April 2010 and appointed as Director in replacement of Louis
Rivalland on 30th April 2010.
Virginie Corneillet
Born in 1972, she holds a masters degree in Corporate Law
of University of Paris V. She joined the Groupe Mon Loisir in
December 1999 after a three years experience in a law firm in
France. She is presently Corporate and Administrative Executive
of Groupe Mon Loisir and is mostly involved in mergers and
acquisitions. She also sits as Director and Alternate Director
of corporations related to Groupe Mon Loisir.
She was appointed as Alternate Director to Jean Claude Bga
in June 2004, as Director in July 2007 in replacement of Olivier
Decannire, and as member of the Corporate Governance
Committee in March 2008.
Jean de Fondaumire
Born in 1953, he qualified as a Chartered Accountant (Scotland)
in 1980 and worked in the fields of audit and merchant banking
in Australia until joining The Anglo-Mauritius Assurance
Society Ltd in 1992. He retired from his position as Group
Chief Executive of Swan Group of Companies in December
2006. He is a director of two companies listed on the Official
Market, two listed on the Development & Enterprise Market of
the Stock Exchange of Mauritius and four unlisted companies.
He was Chairman of the Stock Exchange of Mauritius between
April 2002 and December 2006.
He was first appointed as Director of the Company in
November 2003, resigned in December 2006 and was
appointed as Director in replacement of Vincent Gombault
on 25th March 2008 and as member of Remuneration
Committees at the same date.
Dsir Elliah
Born in 1964, he is a Chartered Accountant with 22 years
experience in auditing, accounting and corporate finance.
Before joining Naade in 2004 as Chief Financial Officer, he was
a partner with DCDM, the largest accounting firm in Mauritius.
He has extensive experience in feasibility studies, financial
restructuring, share valuation and due diligence reviews.
He was appointed as Director of the Company in October
2004.
atrce Hardy
Born in 1960, he is the Managing Director of Naade, with 22
years track record in hotel investment, financing, development,
marketing and operations. His career as an hotelier started
in 1986 when he identified an opportunity to invest in the
hospitality business through launching Le Tropical.
He is also active in the affairs of the Tourism industry in
Mauritius and is presently the Treasurer of the Association
des Hoteliers et Restaurateurs de lIle Maurice (AHRIM).
He was appointed as Chairman at the incorporation of the
Company in 1987 until 1992 where he was appointed as
Managing Director. He was then appointed as member of the
Remuneration Committee in April 2003 and as member of the
Corporate Governance Committee in April 2005.
Alexis Harel
Born in 1962, Alexis Harel holds a Bachelor of Science degree
Born in 1962, he holds a Bachelor of Science Degree in Business
Administration-Accounting from Louisiana State University,
USA. He started his career in auditing with De Chazal Du Me
and then occupied managerial positions in the industrial and
IT sectors. He joined Grays & Co in 1992 and currently holds
the position of Commercial Executive and Director.
He was appointed as Director of the Company and as Chairman
of the Audit Committee in April 2004, and as Chairman of the
Corporate Governance Committee in April 2005.
responsible of the treasury operations and acts also as Director
of some entities related to Groupe Mon Loisir. Prior to joining
Groupe Mon Loisir, he was working with a major international
bank operating in Mauritius. He was appointed as Alternate
Director to Virginie Corneillet in August 2009.
Jean-Raymond Harel
Born in 1934, he qualified as a Bachelor of Science in Chemical
Engineering from Louisiana State University in Baton Rouge,
Louisiana, USA, in 1957. He had a rich career in the Sugar
Industry and relative fields such as design of equipment,
general engineering, preliminary studies leading to the
implementation of a thermal power plant and setting up of
an alcohol distillery. He retired from his executive functions
a few years ago.
He was appointed as Director in July 1998 and as Chairman
of the Company from October 1998 to November 2002. He
resigned as Director and was appointed as Alternate Director
to Alexis Harel in April 2004.
Amaury Lagesse
Born in 1961, he has studied Management in South Africa and
started working in a clothing company in Durban. He then
specialized in textile management in England and Scotland
before joining in 1987 the Palmar Group, where he currently
holds the position of Production Manager.
He was appointed as Alternate Director to Stphane Lagesse
in December 2003.
Hugues Lagesse
Born in 1975, he holds a diploma in administration and
finance from Ecole Superieure de Gestion in Paris, France. In
September 2007, he followed a course on Management at
INSEAD in Fointainebleau in France and then a course in Real
Estate in Paris and at Harvard Business School in Boston.
He is the Project Executive of Indian Ocean Real Estate
Company (IOREC), member of Groupe Mon Loisir which deals
with the development and management of land property.
He was appointed as Alternate Director to J. Cyril Lagesse in
April 2004.
Dev oo|ovadoo
Born in 1962, Dev was one of the first persons to join Naade
Resorts in 1990. Graduate in Accounting and Finance from the
UK, he is responsible for the financial management of Naade
and of its subsidiaries.
He is also involved in the affairs of the Industry with the
Association of Hoteliers and Restaurateurs de lIle Maurice
(AHRIM). He was appointed as Alternate Director to Dsir
Elliah in August 2009.
Arnaud Lagesse
Born in 1968, he joined the Groupe Mon Loisir in 1993 and
was appointed Chief Executive Officer in 2005. He holds a
Matrise de Gestion from University of Aix-Marseille III and
is a Graduate of Institut Suprieur de Gestion from France. He
also completed an Executive Education Program at INSEAD
Fontainebleau, France.
He was appointed as Director and Chairman of Naade Resorts
Ltd as well as Chairman of the Remuneration Committee in
October 2003 and as member of the Corporate Governance
Committee in April 2005.
J. Cyril Lagesse
Born in 1932, he set up in the early 1970s the Compagnie
dInvestissement et de Dveloppement Limite, founder entity
of todays well known Groupe Mon Loisir which has positioned
itself as one of the regional leaders.
J. Cyril Lagesse sits on the Board of several of the countrys
most prestigious companies, some of which are listed on the
Stock Exchange of Mauritius.
He was appointed as Director of Naade Resorts Ltd in October
2003.
Stphane Lagesse
Born in 1959, he studied in Gestion des Entreprises Parix
IX Dauphine and joined the Palmar Group in 1983 where
he currently holds the position of Managing Director. He
participated in the setting up two garment manufacturing
companies in Mauritius.
He was appointed as Director in March 1999 and as a member
of the Audit Committee in October 2003.
AL1LkNA1L D|kLC1OkS' kOI|LLS
asca| 8ertrand
Born in 1962, Pascal has a 26 years career in the international
hotel industry. After four years as General Manager of Legends,
he joined the Executive Committee of Naade as Area Operations
Manager in August 2008 where he manages operations
within Naade (hotels, spas, boutiques) and participates in
the application of strategic plans and new projects. He was
appointed Group Operations Manager in June 2009. He was
appointed as Alternate Director to Patrice Hardy in August 2009.
Laurent de la Hogue
Born in 1975, he holds a master degree in management and
finance from Ecole Suprieure de Gestion et Finance in Paris,
France. He joined the Groupe Mon Loisir in 2001 to set up the
central treasury unit where he is currently the Treasurer. He is
Directors Profiles (Continued)
Sylvia Maigrot
Born in 1970, Sylvia Maigrot joined Naade Resorts as Group
Company Secretary in 2001. A graduate of South Africa in
Business Administration and Management and an Associate
of the Institute of Chartered Secretaries and Administrators
of the UK, she began her career as Company Secretary
at Groupe Mon Loisir in 1996 before branching out as an
independent and later joining Naade.
Ouma Cuniah
Born in 1968, Ouma Cuniah holds a Masters degree in
Commerce and Finance from Delhi University and joined
Naade Resorts in 2003 with eight years experience acquired
at Deloitte (Mauritius) in auditing, tyaxation and consultancy.
She is a Fellow Member of the Association of Chartered
Accountants, a Certified Internal Auditor from the Institute of
Internal Auditors, and the holder of a CISA certificate.
atrce Hardy
Please refer to page 99 in Directors Profiles.
Dsir Elliah
Please refer to page 99 in Directors Profiles.
asca| 8ertrand
Please refer to page 100 in Alternate Directors Profiles.
Dev oo|ovadoo
Please refer to page 100 in Alternate Directors Profiles.
Nicolas Autrey
Born in 1977, Nicolas Autrey joined Naade Resorts in August
2008 as Assistant Group Human Resources Manager and has
been promoted Group Human Resources Manager in January
2010. He has more than twelve years experience in in Human
Resources, having worked in the textile, hospitality and
commercial sectors of the Mauritian economy before joining
the Group. Nicolas is the holder of an MSc degree in Human
Resources Management from the University of Surrey.
Senior Management Profiles
The Situation as regards Directorships
at 31 December 2009 is as follows:
Naade
Resorts
Ltd
Beau
Rivage
Co
Ltd
Blue Bay
Tokey
Island
Limited
Les
Pavillons
Resorts
Ltd
Posidon
Limite
La
Plantation
Limited
FMM
Lte
LTK
Ltd
MSF
Leisure
Company
Ltd
NRTA
Ltd
Autrey Nicolas
Baras Stphane

Bga Jean-Claude
Pascal Bertrand

Burian Peter
Corneillet Virginie
De Fondaumire Jean
Elliah Dsir

Hardy Patrice

Harel Alexis

Lagesse Arnaud

Lagesse J. Cyril
Lagesse Stphane
Maigrot Sylvia
Pierre Sydney
Ramasawmy Richard
Rivalland Louis
Naade
Resorts
(UK)
Limited
Naade
Resorts
Seychelles
Ltd
Naade
Holidays
(Pty)
Ltd
Holiday
& Leisure
Resorts
Limited
Naade
Holidays
Ltd
Naade
Foundation
Merville
Beach
Hotel Ltd
Merville
Limited
Htel
Prestige
Runion
Les
Villas du
Lagon SA
SVHOI
SA
Le
Rcif
Notice of Annual Meeting to Shareholders
Notice is hereby given that the Annual Meeting of Shareholders of the Company will be held at its Registered Office, Pierre
Simonet Street, Floreal, on Wednesday 16th June 2010 at 10h00 with the following agenda:
1 To consider and approve the audited financial statements for the year ended 31st December 2009
2 To receive the auditors report
3 To consider the annual report
4 To ratify the interim dividend declared by the Board of Directors on 11th August 2009 for the financial year ended 31st
December 2009
5 To re-elect Mr J. Cyril Lagesse as Director of the Company under Section 138(6) of the Act
6 To re-elect Mr Alexis Harel as Director of the Company
7 To elect Mr Jean-Paul Chasteau de Balyon as Director of the Company
8 To take note of the automatic reappointment of the auditors under Section 200 of the Companies Act 2001 and to authorise
the Board to fix their remuneration
9 To ratify the remuneration paid to the auditors for the year ended 31st December 2009
By Order of the Board
Sylvia Maigrot
Posidon Limite
Secretary
7 May 2010
A shareholder of the Company entitled to attend and vote at this meeting may appoint a proxy (in the case of an individual shareholder) or a
representative (in the case of a shareholder company, by way of a written board resolution), whether a member or not, to attend and vote on his
behalf.
The instrument appointing a proxy, any general power of attorney or the written resolution appointing a representative should reach the Group
Company Secretary, Pierre Simonet Street, Floreal, Mauritius, not less than twenty four hours before the time appointed for the holding of the meeting
or adjourned meeting. In default, the instrument of proxy shall not be treated as valid.
A proxy form is included in this annual report and is also available at the registered office of the Company.
For the purpose of this Annual Meeting, the Directors have resolved in compliance with Section 120 (3) of the Companies Act 2001, that the
shareholders who are entitled to receive notice of the meeting and attend such meeting shall be those shareholders whose names are registered in the
share register of the Company as at 19th May 2010.
This notice is issued pursuant to Listing Rule 11.16.
The Board of Naade Resorts Ltd accepts full responsibility for the accuracy of the information contained in this notice.
Proxy Form
I / We
of

being a shareholder of Naade Resorts Ltd hereby appoint

of
or failing him/her,

of

as my / our proxy to vote for me / us on my / our behalf at the Annual Meeting of Shareholders of the Company to be held
at the Registered Office, Pierre Simonet Street, Floreal on Wednesday 16th June 2010 commencing at 10h00 and at any
adjournment thereof.
I/We direct my/our proxy to vote in the following manner:
Vote with a tick
Resolution For Against
1 To consider and approve the audited financial statements for the year ended
31st December 2009
2 To receive the auditors report
3 To consider the annual report
4 To ratify the interim dividend declared by the Board of Directors on 11th August
2009 for the financial year ended 31st December 2009
5 To re-elect Mr J. Cyril Lagesse as Director of the Company under Section 138(6)
of the Act
6 To re-elect Mr Alexis Harel as Director of the Company
7 To elect Mr Jean-Paul Chasteau de Balyon as Director of the Company
8 To take note of the automatic reappointment of the auditors under Section 200
of the Companies Act 2001 and to authorise the Board to fix their remuneration
9 To ratify the remuneration paid to the auditors for the year ended 31st December
2009
Signed this Signature
/BBEF3FTPSUT-UE3FHJTUFSFE0GGJDF1JFSSF4JNPOFU4USFFU'MPSFBM
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Naade Resorts Ltd Annual Report 2009

Naade kesorts Ltd lierre Simonet Street l|orea| Mauritius

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