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CONTENTS
Companyproleandoperatinglocations 2
Directorateandseniormanagement 3
Directorsreport 5
Analysisofshareholders 9
Corporategovernance 12
Fiveyearreview 14
Valueaddedstatement 16
Statementofresponsibility 18
Reportoftheindependentauditors 19
Noticeofmeeting 45
Shareholdersdiary 46
Corporateinformation 46
Formofproxy 47
Z A M B I A S U G A R P l c
KEY FEATURES 2010 2009
Revenue(ZK'million) 907 963 532478
Protfromoperations(ZK'million) 159 006 78048
Protfortheyear(ZK'million) 97 640 137116
Basicanddilutedearningspershare(ZK) 16.09 25.27
Headlineearningspershare(ZK) 15.90 25.39
Year-endmarketprice(ZK) 315 239
Price:headlineearningsratio(%) 19.8 9.5
Dividendspershare(ZK) 7.5 12.60
Numberofsharesinissue(000) 6 331 428 5426938
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Z A M B I A S U G A R P l c
COMPANY PROFILE
ZambiaSugarPlcislistedontheLusakaStockExchange.In2009,thecompanycompletedasuccessfulrightsissueduring
whichitsprincipalshareholder,IllovoSugarLimitedofSouthAfrica,partiallyrenounceditsrightsandconsequentlyreduced
itsshareholdinginZambiaSugarfrom89.7%to81.6%.This,insupportofgovernmentpolicytoincreaselocalparticipationin
business,enablesincreasedpublicownershipinthecompany.Thebalanceoftheissuedsharecapitalisheldbyinstitutional
investorsandmembersofthepublic,includingemployees.
ZambiaSugarisbasedattheNakambalaEstateintheMazabukaDistrictoftheSouthernProvince.Combinedwithgood
climaticandsoilconditions,the companyscanegrowingoperationsaresignicantlyenhancedby accesstowaterfrom
theKafueRiverforfull-scaleirrigationofthecrop,resultinginexcellentcaneyieldsandhighsucrosecontentincane.
Approximately60%ofcanethroughputforthefactoryisprovidedbytheseoperations,withthebalancesuppliedbyprivate
outgrowers.Thesugarproducedfromcanesuppliedbylocalsmall-scalecanefarmers,andexportedtotheEuropeanUnion
(EU),benetsfromnancialincentivesgrantedundertheFairtradelabel.
The company is Zambias largest sugar producer with the capacit y to produce 450 000 tons of high-quality sugar per
annum.About41%ofcurrentproductionissoldtodomesticconsumerandindustrialmarkets,withthebalanceexportedto
preferentialmarketsintheEuropeanUnion(EU)andtoregionalmarkets.Thecompanyalsomanufacturesarangeofsugar-
basedspecialtyproducts.Molasses,aby-productofthesugarmillingoperation,issoldmainlyasstockfeedintobothlocal
andregionalmarkets.
AllsugarissoldundertheWhitespoonlabelanddirect-consumptiondomesticmarketsugarisVitamin-Afortied.
ZambiaSugaristhesinglelargestprivateagriculturalandmillingcompany,andemployerintheMazabukaregion,andis
regardedexternallyasapremieragriculturalenterpriseinZambia.Itcurrentlyemploysaround2000permanentemployees
andjustover4000seasonalworkersatpeakperiods.Itisasignicantearnerofforeignexchangeandindirectlysupportsthe
ongoingcreationandexistingviabilityofmanylocalenterpriseswhichsupplygoodsandservicestothecompany.Zambia
Sugaradministersanactivesocialinvestmentprogramme,deliveringmeaningfulbenetstoitssurroundingcommunities.
Zambia Sugars holding company, Illovo Sugar Limited, is a leading, global, low-cost sugar producer and a signicant
manufacturerofhigh-valuedownstreamproducts.ThegroupisAfricasbiggestsugarproducerandhasextensiveagricultural
and manufacturing operationsin six African countries.Downstream products include furfural(used mainly in lube oilreneriesforthepuricationofoils),furfuryl alcohol(usedmainlytoproducearesininthefoundryindustryasa binder
forfoundrysands),diacetyland2.3-pentanedione(bothusedashighqualitynaturalavourants),Agriguard(anagricultural
nematicide),BioMassSugar(asugarcane-basedfertiliser),ethylalcoholandlactulose(anaturallaxative).Illovoislistedonthe
JSELimited.ItisasubsidiaryofAssociatedBritishFoodsplcwhichholds51%oftheissuedsharecapital.
HEAD OFFICE
Mazabukaagricultural,
sugarmanufacturing,
packinganddistribution
operations.
SALES DEPOTS
OPERATING LOCATIONS
L U S A K A
Ma z a b u k a
N a k o n d e
K a s a m a
M a n s a
C h i p a t a
N d o l a
K a s u m b a l e s a
S o l w e z i
L u a n g w aM u m b w aM o n g u
Zambia
L i v i n g s t o n e
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DIRECTORATE
Name Qualifications Appointed Position
NON-EXECUTIVE CHAIRMAN
DGMacLe od(63)^# BCom,A MP(O xon) 20 01 D ep ut yChairmanIllovoSugarLimite d
EXECUTIVE DIRECTORS
SDLangton(48)# PrEng,BScEng 2008 ManagingDirector
DMKabunda(47) BA(PubAdmin),MBA 2008 HumanResourcesDirector
RMLKatowa(49) BA,MBA,MCIM,FZIM 2002 MarketingDirector
SSMunsamy(55) BTechMgt,MDP 2009 OperationsDirector
DMWellington(54) BAcc,CA 2008 FinancialDirector
NON-EXECUTIVE DIRECTORS
GJClark (54) * # BAcct(Hons), FCA(Aust) 2001 ManagingDirector I llovoSugar L imited
BMStuart(62)# BCom, DipSugarTech,SEP 2009 Operat ionsDirector I llovoSugarL imited
KZarnack(37)*# BCom,CA(SA) 2005 FinancialDirectorIllovoSugarLimited
NON-EXECUTIVE INDEPENDENT DIRECTORS
FMBanda ACIS,FCMA 2002 Directorofcompanies
ABChikwanda*^ BSc(Econ) 2001 Directorofcompanies
ARMpungwe BA(Hons) 2007 Directorofcompanies
MDMwanakatwe BA,ACCA,FZICA 2005 Directorofcompanies
DPatel 2006 Directorofcompanies
SENIOR MANAGEMENT
Name Qualifications Joined Operating responsibility
JMMukukwa(45) MScChemEng 1990 Factory
LMSievu(48) BAcc,ACMA,ACIS,FZICA 2004 Corporateaf fairs
HPVeenstra(53) MAgMgt(AgEcon) 2003 Agriculture
* - AuditCommit teeMember
^ - Remun er ationCommit teeMemb er
# - R iskManagementCommitteeMember
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DIRECTORS REPORT
PRINCIPAL ACTIVITIES
Thepr incipal activ itiesofthecompanyarethecultivationofsugarcaneand the
productionofsugarforsaleintolocalandexportmarkets.
REVIE OF OPERATIONS
Zambia Sugars operations recorded a net prot after taxation of ZK97 640
millionfortheyear,havingproduced315043tonsofsugar(2009:193880tons)
andsold305973tons(2009:192826tons).
RecordcaneandsugarproductionfollowingthecompletionofZambiaSugars
majorexpansionprojectin2009resultedinoperatingprotdoublingfromZK78
billioninthepreviousyeartoZK159billionin2009/10.Salesvolumeincreased
from193000tonsto306000tonsfollowingstrongdemandforsugarinall
markets. Realisations fromexport saleswere, however, negativelyimpacted
bythestrengthoftheKwacha,althoughthestrongcurrencywasofbenet
to foreign currency denominated operating costs. Eective costcontroland
improvedsalespricingandvolumesbenetedmargins.
InAugust2009,thecompanycompletedasuccessfulrightsissuewhichraised
US$50million.Duringtheprocess,theIllovogrouppartiallyrenounceditsrights
andconsequentlyreduceditsshareholdinginZambiaSugarfrom89.7%to81.6%,
thisbeingsupportiveoftheGovernmentpolicytoincreaselocalparticipationin
businessesinZambia.Theproceedswereusedtoreduceborrowingsrelatedto
therecentmajorexpansionprojectandtheacquisitionofNangaFarmsPLC,a
largecanegrowingcompanycurrentlyproducing325000tonsofcanewiththe
potentialtofurtherincreaseoutput.
During the year, the company spent capital of ZK13 969 million on the
replacement of assets and ZK144 799 million on further expansion of the
business. A total of ZK25 928 million was spenton the refurbishment and
overhauloffactoryplantandmachinerytoensurethatthefactoryiskeptin
soundcondition,thatstrategicplantisadequatelyprotectedagainstbreakdown
andthatproductqualitymeetsglobalstandards.
ARICULTURE
The agricultural operations incorporating Nanga Farms produced a record
canecropof1.7milliontonsin 2009/10,comparedwith722000 producedin
thepreviousseason.Heavyandunseasonalrainfallduringtheseason,however,
impactednegativelyuponcanedeliveries,resultinginanareaof3250hectares
ofcanelandbeingcarried-overforprocessingin2010/11.Outgrowerdeliveries
amountedtoapproximately910000tonsofcane,bringingtotalcaneproduction
to 2.6 million tons(2009 1.6 million tons), an increaseof approximately one
milliontonscomparedto2008/09.
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P RO D UC T IO N
In its rst year of operation followingthe expansionof thefactory, record sugar productionof 315 000 tons wasachieved,
representinga62%increaseintonnagecomparedtothepreviousseason.Overall,factoryperformanceandecienciesshowed
considerableimprovementoverthepreviousseason,withtheplantreachingitsnewratedcapacity.
MA RK ET IN
Domesticmarketsugardemandincreasedby10%comparedtothepreviousyear,drivenbystronglocaleconomicfundamentals.
Regionalsugardecitswerebenecialtoexportopportunitiesandprices.DespiteareductioninEUsugarprices,eectivefrom
1October2009,thecompanybenetedfromincreasedandunrestrictedmarketaccesstotheEUbywayofZambiasduty-free
andquotafreeaccessintothismarket.Consequently,exportstotheEUincreasedfrom40000tonsinthepreviousyeartonearly
90000tonsin2009/10.
EXPANSION PROJECT
InDecember2009,ZambiaSugars recentmajorexpansionprojectwas ociallycommissionedby HisExcellenciesPresidentJacobZumaoftheRepublicofSouthAfricaandPresidentRupiahBandaoftheRepublicofZambia.TheR1.7billionproject,which
resultedinthedevelopmentofanadditional10500hectaresofirrigatedcaneeldsbythecompanyanditssupplyinggrowers,
alongwiththeexpansionofthefactorysmillingcapacity,hasincreasedannualsugarproductionfromaround200000tonsto
450000tons.Amongstmanyotherbenets,theprojecthasalsoresultedinthedevelopmentoftheMagobboandManyonyo
smallholdersugarcaneschemeswhichwillseetheestablishmentof438hectarestoirrigatedcaneland.
Afurther majorbenetof theexpansionprojectwas theinstallationofsignicantlyincreasedelectricitygeneratingcapacity,
allowing all of the Zambia Sugar business,including its agricultural operations, to become self-sucient in its own power
requirements.
Aprojecttoinvestigatethefeasibilityoferectinganethanolplanttomakeuseofthefactorysincreasedmolassessupplieshas
commenced.Itisenvisagedthatthisplantwouldsupplyethanolforblendingwithpetrol.
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DIRECTORS REPORT
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PROSPECTS
Goodclimaticconditionsandincreasedlandundercanewillfurtherincreasesugarcanedeliveriestothefactoryin2010/11.
The factory ispositioned to further consolidatethe expansion gains achievedin2009/10andanothers ignicant increase in
sugarproductionisanticipatedinthecurrentseason.Operatingprotisanticipatedtoincreaseaccordingly.Exchangerate
movementsandweatherwillcontinuetoinuenceprots.
Financingcostswillcontinuetoimpactonearningsinthecomingyear.However,shouldtheKwacharemainatitscurrent
higherlevels,thenegativeimpactofincreasednancingcostswillbemitigatedbyexchangerategainsrelatingtoUSdollar-
denominatedexpansion-relatedloans.
H UMA N RES O URC ES
Human resourcemanagement and operational strategiesare determined by the business needsof the company. These
strategiesembracethemacroeconomicandlabourenvironmentsandarealignedtotheIIlovogroupsstrategicintent.Awork
ethicofcontinuousimprovementwhichencouragesfocusedandskilledemployeestorealisetheirfullpotentialandtomakea
dierenceintheirareasofoperationisacornerstoneofthecompanyspolicy.
Employeedevelopmentand performancemanagementcombineto elicit thebest fromemployees andensureequitable
labourpractices. Thecompanyencouragesandproactively engagesin dialogueandpartnershipwiththe union. Various
communicationchannelssuchasaJointConsultativeCouncil,inadditiontothebargainingtableareopenandenhancegood
rapportbetweenmanagementandunionrepresentatives.Themutualrespectbetweenthepartnershasbeenacknowledged
andcommendedbytheMinistryofLabourandSocialSecurity.
The continued development of employees through wide- ranging training initiatives to ensure that employee talents are
harnessedintheirareasofoperation,bothfromamanagerialandtechnicalperspective,remainsanareaoffocus.
Keyareasofhumanresourcesfocusincludebestpracticebenchmarking,targetedmanpowersuccessionplanning;talentand
performancemanagement;themaintenanceofcollaborativeindustrialrelations;humanresourcedevelopmentandbusiness
understanding;localisationprogrammes;andthehealthandwelfareofemployeesandtheirdependants.
Technology transfer and upgrading of local skills and mentorship remains a priori ty. While development programmes
encompass positionsat alllevels,emphasiswas again placed onthe upliftmentof artisans andoperators. Thecompany
continuestobenetfromparticipationinIllovogrouptraininginitiativessuchasaLeadershipandDevelopmentProgramme
forseniormanagers.
Managementtraineesarefollowingthegroupsprogrammedevelopedforthiscategoryofemployees.Severaljuniormanagers
havebenetedfromperiodsofsecondmentandtechnicalvisitstosugarmillingoperationsinSouthAfrica.
ABusinessUnderstandingProgrammecontinuestobeanimportantpartofthecompanysemployeeinvolvementprocess.
The upgrading of the estate infras tructure and amenities continued during the year, and an ongoing village electricat ion
programmehascontinued.
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HEALTH, SAFETY AND ELFARE
The integrate dSafety, OccupationalHealth andEnvironmental ManagementSystem (SHE) remains entrenche din all areasofoperationswiththecompanymaintainingNOSAFour-starplatinumawardsforthe factoryandagriculturaloperations.The
companycontinuedtomaintainSABSISO9001:2000QualityManagementSystemaccreditation.
Healthcare isprovided toallemployees mostly throughaccessto company-runclinics.Thecompanysintegratedmalaria
controlprogrammewasawardedacerticateofexcellenceforBestPracticesbytheZambianMinistryofHealthformaintaining
malariapositiveincidencestobelow50per1000populationontheNakambalaestate.Inaddition,undertheHIV/AIDsand
wellnessprogramme,thecompanycontinuedwithvigorousVoluntaryCounsellingandTesting(VCT)with70%ofpermanent
workforce,68%oftheseasonalworkforceand42%ofdependantshavingundergoneVCT.Intheperiodunderreview,ourHIV/
AIDSmanagementprogrammehasbeenratedbytheMinistryofHealthasthebestintheprovince.
DIRECTORATE AND SECRETARY
Thedirectorswhoheldof ficeduringtheyearwere:
Non-ExecutiveDirectors
DGMacLeod#^ :Chairman
GJClark*^# :ChairmanoftheRemunerationCommittee
BMStuart# :ChairmanoftheRiskManagementCommittee
KZarnack*# :ChairmanoftheAuditCommittee
Non-ExecutiveandIndependentDirectors
ABChikwanda*^
FMBanda
ARMpungwe
MDMwanakatwe
DPatel
ExecutiveDirectors
DMKabunda :HumanResourcesDirector
RLKatowa :MarketingDirector
SDLangton :ManagingDirector
SSMunsamy :OperationsDirector
DMWellington :FinancialDirector
*MemberoftheAuditCommittee
^MemberoftheRemunerationCommittee
#MemberofRiskManagementCommittee
CompanySecretary
LMSievu
DIRECTORS REPORT
(continued)
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D IREC T O RS IN T ERES T S
Nodirectorhadanymaterialinterestinanycontractwiththecompanyduringtheyearunderreview.
Thebenecial interest softhedirectorsholdingoceattheendof theyear underreviewintheissuedordinarysharecapi talof
thecompanyasat31March2010wereasfollows:
2010 2009
No of shares No of shares
FMBanda 143505 143505
ABChikwanda 200000 200000
DMKabunda 350000 300000
SHARE CAPITAL
The 47thannual genera lmeetingof members of the company passeda special resolut ion to increase the author ised share
capitalbycreatingafurther1465000000newordinarysharesof50Ngweeeach,therebyincreasingthesharecapitalofthe
Companyfrom5535000000ordinarysharesofK0.50eachto7000000000.Aftera6:1renounceablerightsissue,theissued
sharecapitaloftheCompanyincreasedto6331427708ordinarysharesofK0.50each.
ANALYSIS OF SHAREHOLDER S
Numberof holders
Numberof shares %
Individuals
1 - 250000 3399 71132128 1.12
250001 - 500000 33 14268959 0.23
500001 - 750000 9 6169367 0.10
750001 - 1000000 5 4397404 0.07
1000001 - 2000000 6 8412375 0.13
2000001andabove 3 13152115 0.21
3 455 117 532 348 1.86
Banks,NomineesandTrusts 26 247008102 3.90
PensionsFunds 23 780696979 12.33
Companies 43 23033607 0.36
IllovoSugarCoperatiefU.A. 1 5163156672 81.55
93 6 213 895 360 98.14
Total 3 548 6 331 427 708 100.00
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DIVIDENDS
The company has previous ly advisedit sintention toreducedividendpayouts to50%ofa fter tax prots whi lst serv icing thefundingrequirementsarisingfromtheexpansionproject.
AninterimdividendofZK5.00pershare(2009:ZK5.60)waspaidtoshareholderson8January2010.Noticeisherebygiventhat
asecondinterimdividendofZK2.00pershare(2009:ZK6.00)hasbeendeclaredinrespectoftheyearended31March2010.This
dividendispayableon14June2010toshareholdersregisteredatthecloseofbusinesson14May2010.
AttheforthcomingAnnualGeneralMeetingtobeheldon26August2010,theDirectorswillproposeanaldividendforthe
yearended31March2010ofZK0.50pershare(2009:ZK1.00).ThiswillresultinatotaldividendfortheyearofZK7.50pershare
(2009:ZK12.60)
SOCIAL INVESTMENT
The company has an active social investment programme struc tured to address the specic needs of its surrounding
communities.Prospectiveprojectsareconsideredonthebasisthattheyaremotivatedbymembersofthelocalcommunity
anddesignatedcompanyrepresentatives.Togaincompanysupport,projectsmustbeshowntobemeaningfulandsustainable,
toreachandbenetasmanypeopleaspossible,andtohaveon-goingcommunityparticipation.
Ongoingprojectsarediverseinnatureandinclude,eitherintheformofcashfundingordirectassistance,thesponsorship
ofmajorsportingeventsandmajorculturalandtraditionalceremonies,donationstothedisabled,theupliftingoffacilitiesat
districthospitals,policestations,orphanages,governmentandmissionschools,sportsandsocialclubs,thelocalradiostation,
drainageworksinhighdensityanddiseasepronecompoundsandassistinginmaintainingsomeofthemunicipalroads.
The companyscontribution to the well being and uplif ting of the surroundingcommunityhas been recognize dand in the
past,thecompanyhaswontheannualZambiaInstituteofMarketingBestCorporateSocialResponsibleCompanyAward.
EMPLOYEES
Theaver agenumberofemp loyeesemployedthroughouttheyearunderreviewwasas follows:
April 2009 4863 October 2009 5501
May 2009 5064 November 2009 5360
June 2009 4957 December 2009 4627
July 2009 5458 January 2010 2649
August 2009 5457 February 2010 2646
September 2009 5452 March 2010 2684
The total remunerationandbenet spaidin respectofth eaboveemp loyees wasZK174944mill ion(2009: ZK130355million)
fortheyearended31March2010.
RESEARCH AND DEVELOPMENT
Inordertooptimisethereturnfromexistinginstalledcapacity,thecompanycontinuestobenetfromwell-establishedin-
house group resources which provide technicalexpertise in agricultural productionand sugar anddownstream product
manufacturetoalloperations.Acentralisedcoreofexpertiseexiststoensuretechnicalstandardsareoptimizedandmaintained
forbothexistingequipmentandnewagriculturalandfactoryinstallations,andto keepabreastwithtechnicalinnovations.
Benchmarkingto improveproductivityandreduceunitcostsis amajorareaof attentioninall operations,withadditional
resourcesrecentlyhavingbeenallocatedtoenhanceoperationalperformanceandbenchmarkingacrossthegroup.
AUDITORS
Deloitte&ToucheweretheCompanysauditorsduringtheyear.
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The Directors and employees of Zambia Sugar strive to ensure that the Company is managed in an ecient, accountable,
responsible and moral manner. The board of directors endorses the Lusaka Stock Exchange Corporate overnance Codefor listed and quoted companies (The Code) and believes that in all material respects the Company complied with the
principles of the Code throughout the year under review.
THE BOARD AND BOARD COMMITTEES
TheCompanyhasaunitar yboardofdirectors ,whichhasapredominanceofnon -executivedirectors .Theroles ofthechairman
andchiefexecutiveareseparatedandthe Chairmanisnon-executive.TheCompanysboardof directorsisaccountableto
shareholdersandresponsibleforreviewingtheperformanceofmanagementagainstbudgetsandbusinessplans,ensuringa
comprehensivesystemofinternalcontrolpoliciesandproceduresoperatesandcomplieswithsoundcorporategovernance
principles,andidentifyingkeyriskareas.
The board isul timately responsible for ensuring that the business is agoingcon cernand tothisend,ee ctivelycontrols the
Companyanditsmanagementandisinvolvedinalldecisionsthatarematerialforthispurpose.Theboarddelegatestheday-
to-daymanagementofthebusinesstothemanagingdirectorassistedbyseniormanagement. Duringtheyear,theboard
mettoconsiderissuesofoperationalstrategy,capitalexpenditureandothermattershavingamaterialeectontheCompany.
The board of directors held four regular meetings in the past year where the management presente d matters for board
discussionandapproval.TherewasfullattendanceatallmeetingsotherthanMrsMDMwanakatweattheApril2009meeting,
MessrsGJClark,MDMwanakatweandDKPatelattheOctober2009meeting,andMsKZarnackattheFebruary2010meeting.
The directors gave satisf actor y reasons to the board for not attending the meetings. In addition, there is provision in the
CompanysArticlesofAssociationfordecisionstakenbetweenmeetingstobeconrmedbywayofdirectorsresolution.
Members of theboard have accessto theadviceof theCompanysecretary, andmay,in appropriate circumstances, take
independentprofessionaladviceattheCompanysexpense.
AUDIT COMMITTEE
The Audit Committee of the board comprises a chairman, who is a non-executi ve director, and two other non-execut ive
boardmembers.TheCommitteeisresponsibleformaintaininganappropriaterelationshipwiththeexternalauditorsandfor
reviewingtheCompanysinternalauditresources,internalnancialcontrolsandtheauditprocess.Itaidstheboardinseeking
toensurethatthe nancialandnon-nancialinformationsuppliedto shareholderspresentsa balancedassessmentof the
Companysposition.
TheCommitte ereviewstheobje ctivi tyandindependenceof theexternalauditorsandalsoconsidersth escopeof theirwork
andfeespaidforauditandnon-auditservices.
TheCommitteehasunrestrictedaccesstoCompanydocument sandinformation,aswellastoemployeesoftheCompanyand
theexternalauditors.Membersofthecommitteemay,inpursuitoftheirduties,takeindependentprofessionaladviceonany
matterattheCompanysexpense.Thecommitteechairmanreportstheoutcomeofmeetingstotheboard.
BoththeexternalandinternalauditorshaveunrestrictedaccesstotheCommitteeanditsChairman.
TheCommitteehastwomeetin gsayear,andinthep astyear therewasfull attendancebyi tsmembersatbothmeetings.
REMUN ERAT IO N C O MMIT T EE
The Remuner ation Committe e comprises three non-execut ive directors. The Committee is responsible for reviewing
compensation toattract, retain and motivate executives and senior managers of quality required for the business. The
CommitteeassessesandapprovesthebroadremunerationstrategyoftheCompany,andisalsoresponsiblefordevelopingand
determiningtheCompanysgeneralpolicyonexecutiveandseniormanagement.TheCommitteeplaysanintegralpartinthe
successionplanningrelativetoseniormanagers.TheCommitteemetonceduringthepastyearandtherewasfullattendance.
RISK MANAEMENT COMMITTEE
The Company s Risk Management Committe e comprises three non-execut ive directors and one execut ive director and is
chairedbyanon-executivedirector.Ingeneral,riskmanagementmeetingsheldbythecompanyareattendedbyallsenior
managersoftheCompany.
CORPORATE GOVERNANCE
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The Committee has formal terms of reference approved by the board. The Committe e is responsible for reviewing the
Companysriskphilosophy,strategyandpolicies,andensuringcompliancewithsuchpolicies;reviewingtheadequacyand
overalleectivenessofthe Companysriskmanagementfunction;ensuringtheimplementationof anongoingprocessfor
riskidentication,mitigationandmanagement;ensuringtheestablishmentofacomprehensivesystemofcontrols;pursuing
measuresforincreasingriskawarenessthroughouttheCompany;reviewinganysignicantlegalmatters;andreviewingthe
adequacyofinsurancecoverage.TheCommitteegivesparticularfocustooperationalrisks,includinghealthandsafety.The
Committeemeetstwiceayear.TherewasfullattendanceatallmeetingsotherthanMissKZarnakattheFebruary2010meeting
whogavesatisfactoryreasonsfornotattending.
EX EC UT IV E C O MMIT T EE O F MA N A EMEN T
Themanagingdirectorandseniormanagementmeetonaweekly basistoreviewoperationalper formance,capit alprogrammes
andotherrelevantissues.TheExecutiveCommitteeofManagementisresponsibleforimplementingthestrategiesandpolicies
determinedbytheboardandmanagingthebusinessandaairsoftheCompany.
MA N A EMEN T REP O RT IN
TheCompanyhasestablishedmanagementrepor tingprocedures,whichincludethepreparationofannualstrategicplansand
budgets.Actualresultsarereportedmonthlyagainstapprovedbudgetsandcomparedtotheprioryear.Protandcashow
projectionsarereviewedregularlywhilstworkingcapitalandborrowinglevelsaremonitoredonanongoingbasis.
INTERNAL CONTROL
The control systems are designed to safeguard the Companys assets, maintain proper accounting records and ensure the
reliabilityofmanagementandnancialinformationproducedbytheCompany.ControlsystemsarebasedonestablishedIllovo
Sugargrouppoliciesandproceduresandareimplementedbytrainedpersonnelwithanappropriatesegregationofduties.
Theeectivenessoftheseinternalcontro lsandsystemsismonitoredbytheinternalaudit departmentandwiththeaidofse lf-
assessmentauditchecklists.Theindependentauditorsthroughtheauditworktheyperformconrmthattheabovementioned
monitoringproceduresarebeingeectivelyapplied.
Nothinghascometotheattentionofthedirectorsortheindependentauditorstoindicatethatanymaterialbreakdowninthe
functioningofabovementionedinternalcontrolsandsystemshasoccurredduringtheyearunderreview.
ET H IC S
Itisafundamentalpolicyofthecompanytoconductitsbusinesswithhonestyandintegrityandinaccordancewiththe
highestlegalandethicalstandards.TheCompanyhasaCodeofConductandBusinessPractices,determiningtheminimum
standardsrequiredofallsta,whichisdisseminatedthroughouttheCompanyandreviewedannuallybyseniormanagement.
TheCodeprescr ibes,interalia, thattheCompanyshallnot makepol iticaldonationsandproscribesbriberyandcorruption.All
managersarerequiredtogivewrittenagreementtothisCode.Inanyinstancewhereethicalstandardsarecalledintoquestion,
thecircumstancesareinvestigatedandresolvedbytheappropriateexecutive.Hotlinefacilities,encouragingpeoplefrom
withinandoutsidetheCompanytoanonymouslyreportanywrongdoingsareoperatedbyindependentforensicaccountants,
andallmattersarisingarethenappropriatelyinvestigatedandreportedupon.
INSIDER TRADIN
DirectorsandocersoftheCompanywhohaveaccesstounpublished,pricesensitiveinformationinrespectoftheCompany
areprohibitedfromdealinginthesharesoftheCompanyduringdenedrestrictedperiods,includingthoseperiodsimmediately
priortotheannouncementofinterimandnalnancialresults.
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PRODUCTION & SALES 2010 2009 2008 2007 2006Tons '000 Tons'000 Tons'000 Tons'000 Tons'000
Own estate cane produced 1 705 722 1088 1242 1291Total cane milled 2 612 1626 1860 1877 1894
Sugar production 315 194 234 245 248
Cane sugar ratio 8.29 8.47 7.96 7.66 7.65
Sugar sales 306 193 243 250 239Local 130 118 116 99 92Export 176 75 127 151 147
Molasses sales 56 45 55 51 47Local 41 39 42 40 40Exports 15 6 13 11 7
FINANCIAL 2010 2009 2008 2007 2006Notes ZK million ZKmill ion ZKmill ion ZKmill ion ZKmill ion
Statement of comprehensive incomeRevenue(netofVAT) 907 963 532478 585303 570096 501833
Protfromoperations 159 006 78048 69629 133371 105702Netnancingcosts 46 285 - 446 1903 2777Protbeforetaxation 112 721 78048 69183 131468 102925
Taxation 15 081 (59068) (58597) 30306 24085Protfortheyear 97 640 137116 127780 101162 78840Attributabletonon-controllinginterest 1 464 0 0 0 0Protattributabletoordinaryshareholders 96 176 137116 127780 101162 78840
Reconciliation of headline earningsProtattributabletoshareholdersofZambiaSugarPlc 96 176 137116 127780 101162 78840Adjustedfor:(Gain)/lossonsaleofproperty,plantandequipment (1 133) 688 (754) (580) (542)Headlineearningsfortheyear 95 043 137804 127026 100582 78298
Balance sheet
Property,plantandequipment 1 303 378 1115712 531792 118128 103119Intangibleasset 67 902Caneroots 204 826 162595 69850 63759 66251Deferredtaxassets 17 982 31037 - - -Currentassets 427 938 311341 200199 187667 203608Cashandbankbalances 59 145 119777 149383 108376 50399Borrowings 1 231 550 1155345 454209 - -Deferredtaxliabilities 34 329 - 28031 47442 46654Retirementbenetobligation - - - 2075 2639Currentliabilities 83 377 151725 101886 105791 96727Netassetvalue 731 915 433392 367098 322622 277357
Protability and asset management
Operaringmargin % 17.5 14.7 11.9 23.4 21.1Returnonnetassets 1 % 13.2 7.5 11.5 39.0 33.3
Liquidity and borrowings
Currentratio 2 times 5.8 2.8 3.4 3.0 2.6Interestcover 3 times 3.4 - 156.1 70.1 38.1Netdebt:equity 4 % 160 239 83 - -Gearing 5 % 62 71 45 - -
Earnings and dividends per share
Basicanddilutedearningspershare 6 ZMK'000 16.09 25.2 23.5 18.6 14.5Headlineearningspershare 7 ZMK'000 15.90 25.4 23.4 18.5 14.4Dividendpershare 8 ZMK 7.5 12.6 14.9 13.0 10.2Dividendcover 9 times 2.1 2.0 1.6 1.4 1.3Dividendpaid ZMK'm 69 646 70822 83304 55897 62410
LUSE statistics
Ordinarysharesinissue 000 6 331 428 5 426 93 8 5 426 93 8 5 426 938 5 426 938Weightedaveragenumberofshares 000 5 977 066 5 426 93 8 5 426 938 5426 938 5 426 93 8Netassetvaluepershare 10 ZMK'000 115.6 79.9 67.6 59.4 51.1Marketpricepershareatyearend ZMK 315 239 560 170 150Dividendyieldatyearend 11 % 2.4 5.3 2.7 7.4 6.8Price:headlineearningsratio 12 % 19.8 9.4 23.9 9.2 10.4
FIVE yEAR REVIEw
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FIVE yEAR REVIEw NOTES
1. Return on net assets
Protfromoperationsexpressedasapercentageofaveragenetoperatingassets.
2. Current ratio
Currentassetsdividedbycurrentliabilities.
3. Interest cover
Protfromoperationsdividedbynancingcosts.
4. Net debt : equity
Interest-bearingliabilities,netofcashandcashequivalents,expressedasapercentageoftotalequity.
5. earing
Interest-bearingliabilities,netofcashandcashequivalents,expressedasapercentageoftotalnetdebtplusequity.
6. Basic and diluted earnings per share
Netprotattributabletoordinaryshareholdersdividedbytheweightedaveragenumberofordinarysharesinissue.
7. Headline earnings per share
Headlineearningsdividedbytheweightedaveragenumberofordinarysharesinissue.
8. Dividend per share
Dividendspershare(interim-paidanddeclared;nal-proposed).
9. Dividend cover
Headlineearningspersharedividedbydividendspershare(interim-paidanddeclared;nal-proposed).
10. Net asset value per share
Totalassetsless totalliabilities dividedbythenumberofsharesinissue.
11. Dividend yield at year end
Dividendspershare(interim-paidanddeclared;nal-proposed)asapercentageoftheyear-endmarketprice.
12. Price: headline earnings ratio
Year-endmarketpricedividedbyheadlineearningspershare.
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The value added statement reects the wealth the Company has generate d through its agricultural, manufacturing and selling
operations,andthesubsequentdistributionandreinvestmentinthebusiness.
WealthcreatedinthecurrentnancialyearwasZK489859million,ofwhich78%wasdistributedtoemployees,providersofcapitaland
theGovernment.36%ofthewealthcreatedwaspaidtoemployees.Thebalanceofthewealthcreatedwasretainedandreinvestedinthecompanyforthereplacementofassetsandtheongoingdevelopmentofoperations.
ROUP COMPANY
2010 2010 2009
ZK'million ZK'million ZK'million
ealth created
Revenue 907 963 907 963 532478
Financingincome 93 309 90 945 -
Paidtooutgrowersforcane (156 334) (194 922) (137385)Manufacturinganddistributioncosts (355 079) (333 076) (163169)
489 859 470 910 231924
ealth distributed
Toemployeesassalaries,wagesandother benet s 174 944 172 623 130355
Tobankinginstitutionsasnancecos ts 139 594 138 509 -
Toshareholdersasdividends 69 646 69 646 70822
Togovernmentastaxation 60 - 8250
384 244 380 778 209427
ealth re-invested
Retainedprots 26 530 17 733 66294
Depreciation 64 064 59 344 23521
Deferredtaxation 15 021 13 055 (67318)
489 859 470 910 231924
Amounts paid to government for taxation excludes the following:
Employeestaxdeductedfromremuneration 27 854 27 461 21252
NetVATamountspaidtogovernment 19 562 16 140 12961
Customsandexciseduties 21 711 21 506 8325
Withholdingtaxescollectedonbehalfofgovernment 3 742 3 742 1021
VALUE ADDED STATEMENT
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Z a m b i a S u g a r P l c(Incorporated in Zambia)
A N N U A L F I N A N C I A L S T AT E M E N T S
fortheyearended31March2010
CONTENTS
Statement of responsibility 18
Report of the independent auditor 19
Statements of comprehensive income 20
Statements of nancial position 21
Statements of changes in equity 22
Statements of cashows 23
Notes to the statements of cashows 24
Notes to the nancial statements 25 17
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Section164(6)oftheCompaniesAct,1994(asamended)requirestheDirectorstopreparenancialstatementsforeachnancialyear
whichgiveatrueandfairviewoftheaairsoftheGroupandtheCompanyandtheprotorlossforthatperiod.
The Directors are responsible for the maintenanceof adequateaccounting records and the preparation and integrit y of the annual
nancial statementsand related information, which havebeen audited by the independent external auditors, Messrs Deloitte &
Touche.
The Directors are also responsible for the systems of internal control. These are designed to provide reasonable, but not absolute,
assuranceastothereliabilityofthenancialstatements,andtoadequatelysafeguard,verifyandmaintainaccountabilityforassets,
andtopreventanddetectmaterialmisstatements.Thesystemsareimplementedandmonitoredbysuitablytrainedpersonnelwith
anappropriatesegregationofauthorityandduties.NothinghascometotheattentionoftheDirectorstoindicatethatanymaterial
breakdowninthefunctioningofthesecontrols,proceduresandsystemshasoccurredduringtheyearunderreview.
In the opinion of the Directors:
thestatementofcomprehensiveincomeisdrawnupsoastogiveatrueandfairviewoftheprotofthe
GroupandtheCompanyforthenancialyearended31March2010;
thestatementofnancialpositionisdrawnupsoastogiveatrueandfairviewofthestateofaairsof
theGroupandtheCompanyasat31March2010;and
therearereasonablegroundstobelievethattheGroupandtheCompanywillbeabletopaydebtsasand
whentheyfalldue.
the nancial statements have been prepared in accordance with International Financial Reporting
StandardsandtheCompaniesAct,1994(asamended).
SignedonbehalfoftheBoardby:
DGMacLeod SDLangton
Chairman ManagingDirector
STATEMENT OF RESPONSIBILITy FOR ANNUAL FINANCIAL STATEMENTS
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TO THE MEMBERS OF ZAMBIA SUAR Plc
Report on the nancial statements
WehaveauditedtheannualnancialstatementsandgroupnancialstatementsofZambiaSugarPlc,whichcomprisethestatementof
nancialpositionandconsolidatedstatementofnancialpositionasat31March2010,andthestatementofcomprehensiveincomeand
consolidatedstatementofcomprehensiveincome,thestatementofchangesinequityandconsolidatedstatementofchangesinequity,
statementofcashowsandconsolidatedstatementofcashowsfortheyearthenended,andasummaryofsignicantaccounting
policiesandotherexplanatorynotes.
Directors responsibility for the nancial statements
Thecompany sdirectorsareresponsiblefor overseeingthepreparationandfairpresentat ionoftheseconsolidatednancial statement s
inaccordancewithInternationalFinancialReportingStandardsandtheCompaniesAct1994(asamended).Thisresponsibilityincludes
designing,implementingandmaintaininginternalcontrolsrelevanttothepreparationandfairpresentationofnancialstatementsthat
arefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies,andmakingaccountingestimatesthatarereasonableinthecircumstances.
Auditors responsibility
Ourresponsibilityistoexpressanopiniononthesenancialstatementsbasedonouraudit.Weconductedourauditinaccordancewith
InternationalStandardsonAuditing.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudit
toobtainreasonableassurancewhetherthenancialstatementsarefreefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabout theamountsanddisclosuresinthe nancialstatements.
The procedures selec ted depend on the auditors judgment , including the assessment of the risks of material misstatement of the
nancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolsrelevant
totheentityspreparationandfairpresentationofthenancialstatementsinordertodesignauditproceduresthatareappropriate
inthecircumstances,butnotforthepurposeofexpressinganopinionontheeectivenessoftheentitysinternalcontrols.Anaudit
alsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadeby
management,aswellasevaluatingtheoverallpresentationofthenancialstatements.
Webelievethattheauditevidencewehaveobtainedissucientandappropriatetoprovideabasisforourauditopinion.
Opinion
Inouropinion,thenancialstatementsgiveatrueandfairviewofthenancialpositionoftheCompanyandofthegroupat31March
2010,andtheirnancialperformanceandtheircashowsfortheyearthenendedinaccordancewithInternationalFinancialReporting
StandardsandtheCompaniesAct1994(asamended).
Report on other legal requirements
TheZambianCompaniesAct, 1994(asamended)requires thatincarr yingout ouraudit,weconsiderandrep orttoyouonthefollowingmatter:weconrmthat,inouropinion,theaccountingandotherrecordsandregistersrequiredbytheActhavebeenproperlykeptin
accordancewiththeAct.
DELOITTE&TOUCHE
CHARTEREDACCOUNTANTS
ALICEJERETEMBO
PARTNER
29APRIL2010
REPORT OF THE INDEPENDENT AUDITOR
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STATEMENTS OF COMPREHENSIVE INCOME
for the year e nded 31 March 2010
ROUP COMPANY
Notes 2010 2010 2009
ZK'million ZK'million ZK'million
Revenue 4 907 963 907 963 532478Costofsales (464 426) (478 692) (263168)
ross prot 443 537 429 271 269310
Othergainsand(losses) 1 133 533 (688)
Distributionexpenses (152 066) (152 066) (86231)
Administrationexpenses (133 598) (129 740) (104343)
Prot from operations 5 159 006 147 998 78048
Netnancecosts 6 (46 285) (47 564) -
Prot before taxation 112 721 100 434 78048
Taxation 7 (15 081) (13 055) 59068
Prot for the year 97 640 87 379 137116
Othercomprehensiveincome - - -
Total comprehensive income for the year 97 640 87 379 137116
Protattributableto:
ShareholdersofZambiaSugarPlc 96 176 87 379 137116
Non-controllinginterest 1 464 - -
97 640 87 379 137116
Totalcomprehensiveincomeatt ributableto:
ShareholdersofZambiaSugarPlc 96 176 87 379 137116
Non-controllinginterest 1 464 - -
97 640 87 379 137116
Earnings per share 8
Basicanddilutedearningspershare(ZK) 16.09 14.62 25.27
Headlineearningspershare(ZK) 15.90 14.53 25.39
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STATEMENTS OF FINANCIAL POSITION
as at 31 March 2010
ROUP COMPANY
Notes 31 March 31 March 31March
2010 2010 2009
ZKmillion ZKmillion ZKmillion
ASSETS
Non-current assets
Property,plantandequipment 11 1 303 378 1 206 148 1115712
Intangibleasset 12 67 902 - -
Investmentinsubsidiary 13 - 155 624 -
Caneroots 14 204 826 165 472 162595
Deferredtaxassets 21 17 982 17 982 31037
Current assets 493 024 446 627 431118
Inventories 15 90 500 86 430 69634
Growingcane 16 280 463 244 420 201783
Factoryoverhaulcosts 17 25 928 25 928 20256
Tradeandoth erreceivables 18 26 952 22 828 19668Currenttaxasset 7 138 - -
Amountsduebyrelatedparties 23 3 957 5 976 -
Cashandbankbalances 65 086 61 045 119777
Total assets 2 087 112 1 991 853 1740462
EQUITY AND LIABILITIES
Equity attributable to shareholders of Zambia Sugar Plc 704 546 695 749 433392
Sharecapitalandpremium 19 247 337 247 337 2713
Capitalredemptionreserve 40 40 40
Dividendreserve 15 829 15 829 37989
Retainedearnings 441 340 432 543 392650
Non-controllinginterest 27 369 - -
Total equity 731 915 695 749 433392
Non-current liabilities 274 101 235 997 977789
Longtermborrowings 20 239 772 235 997 977789
Deferredtaxliabilities 21 34 329 - -
Current liabilities 1 081 096 1 060 107 329281
Tradeandoth erpayables 22 52 035 50 098 78776
Currentportionoflongtermborrowings 20 991 778 978 667 177556
Amountsduetorelatedparties 23 28 004 28 004 68893Bankoverdraft 5 941 - -
Provisions 24 3 338 3 338 4056
Totalliabili ties 1 355 197 1 296 104 1307070
Total equity and liabilities 2 087 112 1 991 853 1740462
The responsibilities of the CompanysDirectors with regard to the prepar ation of the nancial statements are set out on page 18.
Thenancials tatementsonpa ges20to 44wereapprovedfor issuebytheB oardof Directorson29Apr il2010andweresignedonits
behalfby:
DGMacLeod SDLangton
Chairman ManagingDirector
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Sharecapital and
premium
Capitalredemption
reserveRevaluation
reserveDividend
reserveRetainedearnings
Attributable toshareholders
of ZambiaSugar Plc
Non-controlling
interests Total
ZKmillion ZKmillion ZKmillion ZKmillion ZKmillion ZKmillion ZKmillion ZKmillion
ROUP
Balanceat31March2009 2713 40 - 37989 392650 433392 - 433392
Totalcomprehensiveincome
fortheyear 96176 96176 1464 97640
Amortisationofrevaluation
reserve - - - - -
Transfertodividendreserve 47486 (47486) - - -
Dividendspaid (69646) - (69646) - (69646)
Non-controllinginterestarising
fromtheacquisitionofNanga
FarmsPLC - 25905 25905
Issueofsharecapital 244624 244624 - 244624
Balance at 31 March 2010 247 337 40 - 15 829 441 340 704 546 27 369 731 915
COMPANY
Balanceat31March2008 2713 40 14568 40431 309346 367098 - 367098
Totalcomprehensiveincome
fortheyear 137116 137116 - 137116
Amortisationofrevaluation
reserve (14568) 14568 - - -
Transfertodividendreserve 68380 (68380) - - -
Dividendspaid (70822) - (70822) - (70822)
Balance at 31 March 2009 2713 40 0 37989 392650 433392 0 433392
Totalcomprehensiveincome
fortheyear 87379 87379 - 87379
Transfertodividendreserve 47486 (47486) - - -
Dividendspaid (69646) - (69646) - (69646)
Issueofsharecapital 244624 244624 - 244624
Balance at 31 March 2010 247 337 40 - 15 829 432 543 695 749 0 695 749
TheCapital RedemptionRes ervewascreatedonthe redemptionofpreferencesharesin1996.
ZambiaSugarPlcacquired85.73%oftheordinarysharesinNangaFarmsPlcforacashconsiderationof ZK155 624 millioneective
27May2009.ThistransactionwasfundedthrougharightsissuethatraisedZK244 624 million.
Thedividendpershare,calcu latedonacashbasis,amounts toZK11.65(2009:ZK13.05).Thecalculat ionisbasedonthedividendspaid
intheyearofZK69 646 million(2009:ZK70822million)dividedbytheweightedaveragenumberofordinarysharesinissueof5 977
066 000 (2009: 5 426 938 035).
ThedividendsdeclaredandproposedamounttoZK15 829 million(2009:ZK37989million).Thecalculationisbasedonthedividend
declaredofZK2.00 per share(2009:ZK6.00)andthedividendproposedofZK0.50 per share(2009:ZK1.00),multipliedbythenumberofordinarysharesinissueof6 331 427 708(2009:5426938035).
STATEMENTS OF CHANGES IN EQUITy
for the year e nded 31 March 2010
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ROUP COMPANY
2010 2010 2009
Notes ZKmillion ZKmillion ZKmillion
Cash ows from operating activities
Protfromoperations 159 006 147 998 78048
Adjustments for:
Depreciation 64 064 59 344 23521
Changeinfairvalueofcaneroots (3 737) (2 877) (1088)
Changeinfairvalueofgrowingcane (48 383) (42 637) (88286)
Provisionsraisedduringtheyear 3 338 3 338 523
Provisionsutilisedduringtheyear (4 056) (4 056) (146)
Factoryoverhaulcostsexpensed 20 256 20 256 19500
Loss/(gain)ondisposalofproperty,plantandequipment (1 133) (533) 688Operatingcashowsbeforemovementsinworkingcapital 189 355 180 833 32760
orking capital movements (119 936) (121 427) 4442
Increaseininventories (16 057) (16 796) (26195)
Factoryoverhaulcostsincurred (25 928) (25 928) (20256)
Decreaseinamountsduetorelatedparties (44 846) (46 865) 51173
(Increase)/decreaseintradeandotherreceivables (192) (3 160) 1431
(Decrease)/increaseintradeandotherpayables (32 913) (28 678) (1711)
Cash generated from operations 69 419 59 406 37202
Netnancingcosts a (112 638) (111 585) -
Incometax(paid)/refund (129) - 2664
Dividendspaid (69 646) (69 646) (70822)
Net cash outows from operating activities (112 994) (121 825) (30956)
Investing activities
Paymentsforproperty,plantandequipment (153 768) (150 589) (587048)
Acquisitionofbusiness b (162 575) - -
Investmentinsubsidiary (155 624) -
Proceedsfromdisposalofproperty,plantandequipment 9 932 6 342 1700
Net cash outows before nancing activities (419 405) (421 696) (616304)
Financing activities
Netproceedsfromissueofequityshares c 244 624 244 624 -
Proceedsfromborrowings 449 127 449 127 586698
Repaymentofborrowings (334 978) (330 787) -
Net decrease in cash and cash equivalents (60 632) (58 732) (29606)
Netcashandcashequivalentsatbeginningofyear 119 777 119 777 149383
Net cash and cash equivalents at end of year 59 145 61 045 119777
STATEMENTS OF CASH FLOwS
for the year en ded 31 March 2010
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1. Signifcant accounting policies
ThenancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRS)onabasis
consistentwiththeprioryearexceptfortheadoptionoftherevisedIAS1PresentationofFinancialStatements,andIFRS8Operating
Segments.Theadoptionofthesenewandrevisedstandardshasresultedincertaindisclosurereclassications,andthereforehad
noimpactonthegroupsaccountingpolicies.
ThesenancialstatementsarepresentedinZambianKwachainunitsofMillionsofKwacha.
Theprincipalaccountingpoliciesaresetoutbelow:
1.1 Basis of consolidation
TheconsolidatednancialstatementsincorporatethenancialstatementsoftheCompanyandNangaFarmsPLC,controlledby
theCompany(itssubsidiary).ControlisachievedwheretheCompanyhasthepowertogovernthenancialandoperatingpolicies
ofanentitysoastoobtainbenetsfromitsactivities.
Theresultsofthesubsidiaryacquiredduringtheyearareincludedintheconsolidatedstatementofcomprehensiveincomefrom
theeectivedateofacquisitionanduptotheeectivedateofdisposal,asappropriate.
Non-controllinginterestsinthenetassetsofconsolidatedsubsidiariesareidentiedseparatelyfromthegroupsequitytherein.Non-controllinginterestsconsistoftheamountofthoseinterestsatthedateoftheoriginalbusinesscombinationandthenon-
controllinginterestsshareofchangesinequitysincethedateofthecombination.Lossesapplicabletothenon-controllinginterest
inexcessofthenon-controllinginterestsshareinthesubsidiarysequityareallocatedagainsttheinterestsofthegroup,except
totheextentthatthenon-controllinginteresthasabindingobligationandisabletomakeanadditionalinvestmenttocoverthe
losses.
1.2 Business combinations
The acquisition of subsidiar ies is accounted for using the acquisition method. The cost of the acquisition is measured at the
aggregateofthefairvalues(atthedateofexchange)ofassetsgiven,liabilitiesincurredorassumed,andequityinstrumentsissued
bytheGroupinexchangeforcontroloftheacquireeplusanycostsdirectlyattributabletothebusinesscombination.
Theacquireesidentiableassets,liabilitiesandcontingentliabilitiesthatmeettheconditionsforrecognitionunderIFRS3are
recognisedattheirfairvaluesattheacquisitiondate,exceptfornon-currentassets(ordisposalgroups)thatareclassiedasheldfor
saleinaccordancewithIFRS5Non-CurrentAssetsHeldforSaleandDiscontinuedOperations,whicharerecognisedandmeasured
atfairvaluelesscoststosell.
1.3 Revenue
Revenueismeasuredatfairvalueoftheconsiderationreceivedorreceivableandrepresentsamountsreceivableforgoodsand
servicesprovidedinthenormalcourseofbusiness,netofdiscountsandsalesrelatedtaxes.Revenueisrecognisedwhengoodsare
deliveredandtitlehaspassed.
Interestincomeisaccruedonatimebasis,byreferencetotheprincipaloutstandingandattheeectiveinterestrateapplicable,
whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthenancialassettothatassets
netcarryingamount.
Dividendincomefrominvestmentsisrecognisedwhentheshareholdersrightstoreceivepaymenthavebeenestablished.
1.4 Leases
Leasesareclassiedasnanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownership
tothelessee.Allotherleasesareclassiedasoperatingleases.
Assetsheldundernanceleasesarerecognisedasassetsofthegroupattheirfairvalueattheinceptionoftheleaseor,iflower,
atthepresentvalueoftheminimumleasepayments.Thecorrespondingliabilityto thelessorisincludedin thestatementof
nancialpositionasananceleaseobligation.Leasepaymentsareapportionedbetweennancechargesandreductionofthe
leaseobligationsoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.Financechargesarecharged
toprotorloss,unlesstheyaredirectlyattributabletoqualifyingassets,inwhichcasetheyarecapitalisedinaccordancewiththe
groupsgeneralpolicyonborrowingcosts.
Rentalspayableunderoperatingleasesarechargedtoprotorlossonthestraight-linebasisoverthetermoftherelevantlease.
NOTES TO THE FINANCIAL STATEMENTS
for the year en ded 31 March 2010
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1.5 Property, plant and equipment
Property,plantandequipmentarestatedinthestatementofnancialpositionatcostlessaccumulateddepreciationandany
impairment losses.Costincludesprofessionalfeesand, forquali fyingassets,capitalisedborrowingcosts.
Assetsheldundernanceleasesaredepreciatedovertheirexpectedusefullivesonthesamebasisasownedassetsor,whereshorter,thetermoftherelevantasset.
Assetsunderconstructionarecarriedatcost,lessanyidentiedimpairmentloss.Suchassetsareinitiallyshownascapitalworkin
progressandtransferredtotherelevantclassofassetswhencommissioned.Costincludesallcostsincurredtobringtheassetinto
useand,wherenecessary,borrowingcosts.
Depreciationiscalculatedonastraightlinebasisatratesestimatedtowritedowntheassettoitsresidualvalue.Depreciation
commenceswhentheassetsarereadyfortheirintendeduse.
Managementreviewstheresidualvaluesannually,consideringmarketconditionsandprojecteddisposalvalues.Intheannual
assessmentofusefullives,maintenanceprogrammesandtechnological innovationsareconsidered.
Thegainorlossarisingonthedisposalorretirementofanitemofproperty,plantandequipmentisdeterminedasthedierence
betweenthesalesproceedsandthecarryingamountoftheassetandisrecognisedinprotandloss.
InZambia,landisheldonleasefromtheGovernmentoftheRepublicofZambiaforaperiodof99years.Inlinewiththerequirements
ofIAS17-Leases,sincetheleasedoesnottransfersubstantiallyalltherisksandownershipof theland,theleaseistreatedasan
operatinglease.Anyadvancepaymentistreatedasaprepaymentandamortisedovertheperiodoftheleaseonastraightlinebasis.
1.6 Intangible assets
Intangibleassetsacquiredinabusinesscombinationandrecognisedseparatelyfromgoodwillareinitiallyrecognisedattheirfair
valueattheacquisitiondate(whichisregardedastheircost).
Intangibleassetswithindeniteusefullivesandintangibleassetsnotyetavailableforusearetestedforimpairment atleast
annually,andwheneverthereisanindicationthattheassetmaybeimpaired.
1.7 Cane roots and growing cane
Canerootsarevaluedatfairvaluedeterminedbytheescalatedaveragecost,usingappropriateinationrelatedindices,ofeach
yearofplantingadjustedfortheremainingexpectedlife. Thefairvalueofgrowingcaneisdeterminedannuallybasedontheestimatedsucrosecontentincaneat31Marchvaluedatthe
estimatedsucrosepriceforthefollowingseason,lessestimatedcostsforharvestingandcanehaulage.
1.8 Factory overhaul costs
Factoryoverhaulcostscompriseexpenditureactuallyincurredonplantandequipmentfortheoverhaulofthefactoryinpreparation
forthenewsugarseasoncommencingafternancialyearend.Thisexpenditureiswrittenoinfulloveritsexpectedusefullife
beingthedurationofonesugarseason.
1.9 Inventories
Sugarinventoriesarevaluedatthelowerofcostandnetrealisablevalue.Costcomprisesdirectmaterialsand,whereapplicable,
directlabourcostsandthoseoverheadsthathavebeenincurredinbringingtheinventoriestotheirpresentlocationandcondition.Netrealisablevalueistheestimateofthesellingpriceintheordinarycourseofbusiness,lessallestimatedcostsofcompletion
andcoststobeincurredinmarketing,sellinganddistribution.Thebasisofdeterminingcostistheaveragemethod.Maintenance
inventoryisvaluedataveragecostwithobsoleteitemsbeingwritteno.Redundantandslowmovinginventoriesareidentied
andwrittendowntotheirnetrealisablevalue.
Eective annual rates of depreciation are :
Leaseholdbuildings 2-5%
Canalsanddomesticwaterworks 2-2.5%
Furniture,ttingsandequipment 25%Plantandmachinery 5-10%
Motorvehicles-Commercial 25%
Motorvehicles-NonCommercial 10-14.3%
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2010 (continued)
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1.10 Provisions
ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobable
thattheGroupwillberequiredtosettletheobligation,andforwhichareliableestimatecanbemadeoftheamountofthe
obligation.
Theamountrecognisedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatthereportingdate,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.Whereaprovisionismeasuredusingthe
cashowsestimatedtosettlethepresentobligation,itscarryingamountisthepresentvalueofthosecashows.
1.11 Borrowing costs
Borrowingcostsdirectly attributabletotheacquisition,constructionor productionofqualifying assets,which areassets that
necessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,areaddedtothecostofthoseassets,
untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.Investmentincomeearnedonthetemporary
investmentofspecicborrowingspendingtheirexpenditureonqualifyingassetsisdeductedfromtheborrowingcostseligible
forcapitalisation.
Allotherborrowingcostsarerecognisedinprotandlossintheperiodinwhichtheyareincurred.
1.12 Taxation
Incometaxexpenserepresentsthesumofthetaxcurrentlypayableanddeferredtax.
Thetaxcurrentlypayableisbasedontaxableprotfortheyear.Taxableprotdiersfromprotasreportedinthestatementof
comprehensiveincomebecauseitexcludesitemsofincomeorexpensethataretaxableordeductibleinotheryearsanditalso
excludesitemsthatarenevertaxableordeductible.TheGroupsliabilityforcurrenttaxiscalculatedusingtaxratesthathavebeen
enactedorsubstantivelyenactedbythereportingdate.
Deferredtaxisrecognisedontemporarydierencesbetweenthecarryingamountsofassetsandliabilitiesinthenancialstatements
andthecorrespondingtaxbasesusedinthecomputationoftaxableprot.Deferredtaxliabilitiesaregenerallyrecognisedfor
alltaxabletemporarydierences,and deferredtax assets aregenerallyrecognisedfor alldeductibletemporarydierences to
theextentthatitisprobablethattaxableprotswillbeavailableagainstwhichthosedeductibletemporarydierencescanbe
utilised.
Thecarryingamountofdeferredtaxassetsisreviewedateachreportingdateandreducedtotheextentthatitisnolonger
probablethatsucienttaxableprotswillbeavailabletoallowallorpartoftheassettoberecovered.
Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodinwhichtheliabilityis
settledortheassetrealised,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbythereporting
date.Themeasurementofdeferredtaxliabilitiesandassetsreectsthetaxconsequencesthatwouldfollowfromthemannerin
whichtheGroupexpects,atthereportingdate,torecoverorsettlethecarryingamountofitsassetsandliabilities.
Deferredtaxassetsandliabilitiesareosetwhenthereisalegallyenforceablerighttosetocurrenttaxassetsagainstcurrent
taxliabilitiesandwhentheyrelatetoincometaxesleviedbythesametaxationauthorityandtheGroupintendstosettlethem
together.
1.13 Foreign currency transactions
ThenancialstatementsoftheCompanyanditssubsidiaryarepresentedinthecurrencyoftheprimaryeconomicenvironment
inwhichitoperates(itsfunctionalcurrency).Forthepurposeoftheconsolidatednancialstatements,theresultsandnancial
positionareexpressedinZambianKwacha(ZK),whichisthefunctionalcurrencyoftheCompanyanditssubsidiary,aswellasthe
presentationcurrencyfortheconsolidatednancialstatements.
InpreparingthenancialstatementsoftheCompanyanditssubsidiary,transactionsincurrenciesotherthantheitsfunctional
currency(foreigncurrencies)arerecordedattheratesofexchangeprevailingatthedatesofthetransactions.Ateachreporting
date,monetaryitemsdenominatedinforeigncurrenciesareretranslatedattheratesprevailingonthatdate.Non-monetaryitems
carriedatfairvaluethataredenominatedinforeigncurrenciesareretranslatedattheratesprevailingatthedatewhenthefairvalue
wasdetermined.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyarenotretranslated.
Exchangedierencesarerecognisedinprotorlossintheyearinwhichtheyarise.
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1.14 Financial instruments
TheGroupsprincipalnancialinstrumentsaretradereceivables,cashandcashequivalent,bankborrowingsandtradepayables.
Tradereceivabl esarestatedatcostlessprovisionforimpairment.Thisrepresents fairvalue.Cashandcashequivalentaremeasured
atfairvalue,basedonrelevantexchangeratesatthereportingdate.Tradeandotherpayablesarestatedatcost.
Interest-bearingbankloansandoverdraftsareinitiallymeasuredatfairvalue,andaresubsequentlymeasuredatamortisedcost,usingtheeectiveinterestratemethod.Anydierencebetweentheproceeds(netoftransactioncosts)andthesettlementor
redemptionofborrowingsisrecognisedoverthetermoftheborrowingsinaccordancewiththeGroupsaccountingpolicyfor
borrowingcosts.
1.15 Retirement benets
TheGroupsemployeesaremembersofaseparatelyadministereddenedcontributionpensionscheme.TheGroupscontributions
arechargedtotheprotorlossastheybecomepayableinaccordancewiththerulesofthescheme.
TheGroupcontributestotheNationalPensionAuthority(NAPSA)foritseligibleemployeesasprovidedforbyLaw.Membership,
withtheexceptionofexpatriateemployees,iscompulsoryandmonthlycontributionsbybothemployerandemployeesaremade.
Theemployerscontributionischargedtoprotor lossin theyearinwhichitaris es.
1.16 Asset impairment review
AnassessmentismadeateachreportingdatetodeterminewhetherthereisobjectiveevidencethattheGroupstangibleand
intangibleassetsmaybeimpaired.Anestimateofthefutureundiscountednetcashowsoftherelatedassetsovertheremaining
usefullifeisusedtodeterminewhethertheassetvalueisrecoverableandtomeasureanyimpairmentbyreferencetofairvalue.
Ifsuchevidenceexists,theestimatedrecoverableamountoftheassetisdeterminedandanyimpairmentlossonthedierence
betweentherecoverableamountandcarryingamountsisrecognisedinprotorloss.
1.17 Segmental analysis
Segmentreportingispresentedin respect oftheGroupsbusinesssegments.Thebusinesssegmentsformatisbasedonthe
Groupsmanagementand internalreportingstructureand combinesbusinesses withcommon characteristics.Inter segment
pricingisdeterminedonanarmslengthbasis.
Segmentsresults;assetsandliabilitiesincludeitemsdirectlyattributabletoasegmentaswellasthosethatcanbeallocatedona
reasonablebasis.
TheGroupiscomprisedofthefollowingbusinesssegments:
Canegrowing-thegrowingofsugarcaneforuseinthesugarproductionprocess,
Sugarproduction- themanufactureofsugarfromsugarcane.
2. International fnancial reporting standards in issue, but not yet eective
Atthedateofapprovalofthesenancialstatements,thefollowingrelevantStandardsandInterpretationswereinissue,butnotyet
eective:
IFRS 2: Share-based payments Theamendmenttothisstandardclariestheaccountingforgroupcash-settledshare-basedpaymenttransactionsintheseparatenancialstatementsofanentityreceivingtheserviceswhenanothergroupentityhasthe
obligationtosettletheaward.Theamendmenttothisstandardiseectivefortheyearending31March2011.
IFRS 3: Business combinations (revised)Thesignicantrevisionstothisstandardrelatetothetreatmentofacquisitioncosts(nowtobeexpensed),contingentconsideration,goodwillwherenon-controllingshareholdersareinvolved,stepacquisitionsand partial
disposals.ConsequentialamendmentswerealsomadetoIAS27:ConsolidatedandSeparateFinancialStatements,IAS28:Investments
inAssociatesandIAS31InterestsinJointVentures.Therevisedstandardsareeectivefortheyearending31March2011.
IFRS 9: Financial instruments: classication and measurementThenewstandardintroducesnewrequirementsforclassifyingandmeasuringnancialliabilities;derecognitionofnancialinstruments;impairment;andhedgeaccounting.Thestandardwillbe
eectivefortheyearending31March2014.
IAS 7: Statement of cash owsTheamendmentrequiresthatonlyexpenditurethatresultsinarecognisedassetinthestatement
ofnancialpositionis eligibleforclassicationasinvestingactivities.Theamendmenttothisstandardis eectivefortheyearending31March2012.
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2010 (continued)
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IAS 17: LeasesTheamendedstandardrequiresthatleasesoflandareclassiedaseithernanceoroperatingusingthegeneralprinciplesofIAS17.Priortotheamendmentleasesoflandweregenerallyconsideredtobeoperatingleases.Theamendedstandard
iseectivefortheyearending31March2012.
Thegroupisintheprocessofevaluatingtheeectsofthesenewandrevisedstandardsand,whilsttheyarenotexpectedtohave
asignicantimpactonthegroupsresults,additionaldisclosuresmayberequired.
3. Critical accounting judgements and key sources o estimation uncertainty
3.1 Critical accounting judgements made by management
IntheapplicationoftheGroupsaccountingpolicies,whicharedescribedinnote1,thedirectorsarerequiredtomakejudgements,
estimatesandassumptionsaboutthecarryingamountsofassetsandliabilitiesthatarenotreadilyapparentfromothersources.
Theestimatesan dassociate dassumptionsarebasedonhistoricalexp erienceandother factorsthat areconsideredtoberelevant.
Actualresultsmaydierfromtheseestimates.
Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedin
theperiodinwhichtheestimateisrevisediftherevisionaectsonlythatperiod,orintheperiodoftherevisionandfutureperiods
iftherevisionaectsbothcurrentandfutureperiods.
Managementhasmadethefollowingjudgement,apartfromthoseinvolvingestimations,thathavethemostsignicanteecton
theamountsrecognisedinthenancialstatements.
Impairment of assets
Inmakingitsjudgement, managementhasassessed ateachreporting datewhetherthereisanyindicationthat the Groups
tangibleandintangibleassetsmaybeimpaired.Ifanysuchindicationexists,therecoverableamountoftheassetisassessedin
ordertodeterminetheextentoftheimpairmentloss,ifany.Therecoverableamountisthehigheroffairvaluelesscoststoselland
valueinuse.
3.2 Key sources of estimation uncertainty
IntheprocessofapplyingtheGroupsaccountingpolicies,managementhasmadethefollowingkeyassumptionsconcerningthefutureandotherkeysourcesofuncertaintyatthereportingdatethathavethemostsignicanteectontheamountsrecognised
inthenancialstatements.
Property, plant and equipment residual values and useful lives
Theseassetsarewrittendowntotheirestimatedresidualvaluesovertheiranticipatedusefullivesusingthestraightlinebasis.
Management reviews theresidualvalues annually considering market conditions and projected disposal values. In assessing
usefullives,maintenanceprogrammesandtechnologicalinnovationsareconsidered.Thecarryingvalueofproperty,plantand
equipmentisdisclosedinnote11tothenancialstatements.
Cane roots valuation
Theescalatedaveragecostsofplantingcanerootsareadjustedfortheremainingexpectedlife.Thisrequiresanestimationby
managementoftheaveragenumberofratoonsexpectedfromthecrop.Thecarryingvalueofcanerootsisdisclosedinnote14to
thenancialstatements.
rowing cane valuation
Growingcaneisvaluedattheestimatedsucrosecontentvaluedattheestimatedsucrosepriceforthefollowingseason,less
estimatedcostsforharvestingandtransport.Theestimatedsucrosecontentrequiresmanagementtoassesstheexpectedcane
andsucroseyieldsforthefollowingseasonconsideringweatherconditionsandharvestingprogrammes.Inassessingtheestimated
sucroseprice,managementisrequiredtoassessintowhichmarketstheforthcomingcropwillbesoldandassessthedomesticand
exportpricesaswellasrelatedforeigncurrencyexchangerates.Thecarryingvalueofgrowingcaneisdisclosedinnote16tothe
nancialstatements.
Therearenootherkeyassumptionsconcerningthefutureorkeysourcesofestimationuncertaintyasatthereportingdatethat
managementhaveassessedashavingasignicantriskofcausingamaterialadjustmenttothecarryingamountsofassetsand
liabilitieswithinthenextnancialyear.
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NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2010 (continued)
ROUP COMPANY
2010 2010 2009
ZK'million ZK'million ZK'million
4. RevenueRevenuerepresentsproceedsreceivablefromthefollowingprimary
businesssegments:
Sugarproduction 641 095 679 683 425070
Canegrowing 266 868 228 280 107408
907 963 907 963 532478
Fromsecondarybusinesssegmentsasfollows:
Localmarket 463 307 463 307 356731
Exportmarket 444 656 444 656 175747
907 963 907 963 532478
5. Proft rom operations
Protfromoperationshasbeendeterminedafterchargingthe
following:
Auditors'remuneration
-Auditfees 837 601 350
-Feesforotherservices 38 - 317
-Otherexpenses 24 18 105
Charitabledonations 312 303 191Changeinfairvalueofcaneroots (3 737) (2 877) (1088)
Changeinfairvalueofgrowingcane (48 383) (42 637) (88286)
Depreciationexpense(seenote11) 64 064 59 344 23521
Directorsandkeymanagementemoluments:
-asdirectorsoftheCompany 1 928 1 449 1390
Employeesremunerationexpenses 169 027 166 803 125206
Employercontributionstopensionfunds(seenote26) 5 917 5 820 5149
Exchangegain - - (540)
Factoryoverhaulcostsexpensed(seenote17) 20 256 20 256 19500
Managementfees(seenote23.1) 5 821 5 821 6418
6. Net fnance costs
Interestpaid 144 594 143 509 121331
Less:capitalised (5 000) (5 000) (121331)
139 594 138 509 -
Interestreceived (592) (560) -
Exchangegains (92 717) (90 385) -
46 285 47 564 -
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ROUP COMPANY
2010 2010 2009
ZK'million ZK'million ZK'million
7. TaxationZambiancompanytaxation
-currentyearcharge 60 - -
Deferredtaxation
-currentyearcharge/(credit) 7 305 5 335 (67318)
-underprovisioninprioryear 7 716 7 720 8250
Totaltaxationcharge/(credit) 15 081 13 055 (59068)
Includedundercurrentassets/(liabilities):
Receivableinrespectofthepreviousyear 69 - 2664
Payableinrespectofthecurrentyear (60) - -
9 - 2664
Paid/(utilised)duringtheyear 129 - (2664)
Taxationre ceivable 138 - -
Reconciliation of taxation rate : % % %
Companytaxationapplicabletoagriculturalentities 15.0 15.0 15.0
Increase/(reduction)incharge/(credit)dueto:
-Expensesdisallowedfortaxpurposes 2.4 2.5 1.4
-Benetsoftaxholidayondeferredtax (3.9) (4.4) (64.7)
-Permanentdierences (6.9) (7.8) (37.9)
-Underprovisioninprioryear 6.8 7.7 10.6
Eectiverateoftaxation 13.4 13.0 (75.6)
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NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2010 (continued)
ROUP COMPANY
2010 2010 2009
ZK ZK ZK
8. Earnings per shareBasicanddilutedearningspershare(ZK) 16.09 14.62 25.27
Headlineearningspershare(ZK) 15.90 14.53 25.39
Earnings ZK'm ZK'm ZK'm
Earningsforthepurposesofbasicanddilutedearningspershare 96 176 87 379 137116
Number of shares Shares Shares Shares
'000 '000 '000
Weightedaveragenumberofordinarysharesforthepurposesofbasic,dilutedandheadlineearningspershare 5 977 066 5 977 066 5426938
Reconciliationofheadlineearnings
ProtattributabletoshareholdersofZambiaSugarPlc 96 176 87 379 137116
Adjustedfor:-
(Gain)/lossonsaleofproperty,plantandequipment (1 133) (533) 688
Headlineearningsfortheyear 95 043 86 846 137804
ZK'million ZK'million ZK'million
9. Dividends paid
ZK6.45pershare(secondinterim2008)-paid13June2008 35004
ZK1.00pershare(nal2008)-paid22August2008 5427
ZK5.60pershare(rstinterim2009)-paid4January2009 30391
ZK6.00pershare(secondinterim2009)-paid12June2009 32 562 32 562
ZK1.00pershare(nal2009)-paid24August2009 5 427 5 427
ZK5.00pershare(rstinterim2010)-paid4January2010 31 657 31 657
69 646 69 646 70822
ZK ZK ZK
Dividendsdeclaredpershare-secondinterimdeclared29April2010 2.00 2.00 6.00
Dividendsproposedpershare-naltobeproposedatAGM 0.50 0.50 1.00
Numberofordinarysharesinissue(millions) 6 331 6 331 5427
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10. Segmental analysis
Theprimarybusinesssegmentsof thegroupandthecompanyareclassiedintosugarproductionandcanegrowingasfollows:
ROUP COMPANY
Year to 31 March 2010 Sugarproduction
Canegrowing
TOTALSugar
productionCane
growingTOTAL
ZK'million ZK'million ZK'million ZK'million ZK'million ZK'million
Revenue 641 095 266 868 907 963 679 683 228 280 907 963
Prot from operations 115 933 43 073 159 006 115 933 32 065 147 998
Property, plant and equipment 918 903 384 475 1 303 378 918 903 287 245 1 206 148
Balanceatbeginningofyear 844 498 271 214 1 115 712 844 498 271 214 1 115 712
Additionsatcost 114 767 44 001 158 768 114 767 40 822 155 589
Acquisitionofbusiness - 103 464 103 464 - - -
Transferto caneroots - (1 703) (1 703) - - -
D epre ciationchargeforth eyear (3 4 553) (29 511) (6 4 0 64) (3 4 553) ( 24 791) (59 3 44)
Netbookvalueofdisposals (5 809) (2 990) (8 799) (5 809) - (5 809)
Other intangible assts - 67 902 67 902 - - -
Investment in subsidiary - 155 624 155 624
Cane roots - 204 826 204 826 - 165 472 165 472
Deferred tax asset/(liability) 16 184 1 798 17 982 16 184 1 798 17 982
Current assets 180 862 312 162 493 024 182 881 263 746 446 627
Inventories 73 474 17 026 90 500 73 474 12 956 86 430
Growingcane - 280 463 280 463 - 244 420 244 420
Factoryoverhaulcosts 25 928 - 25 928 25 928 - 25 928
Tradeandoth erreceivables 16 458 10 49 4 26 952 16 458 6 370 22 828
Currenttaxassets - 138 138 - - -
Amountsduebyrelatedparties 3 957 - 3 957 5 976 - 5 976
Cashandcashequivalents 61 045 4 041 65 086 61 045 - 61 045
Current liabilities 701 118 379 978 1 081 096 701 118 358 989 1 060 107
Tradeandotherpayables 40 078 11 957 52 035 40 078 10 020 50 098
Shorttermportionofborrowings 636 133 355 645 991 778 636 133 342 534 978 667
Amountsduetorelatedparties 22 403 5 601 28 004 22 403 5 601 28 004
Bankoverdrafts - 5 941 5 941 - - -
Provisions 2 503 835 3 338 2 503 835 3 338
Non-current liabilities 153 398 120 703 274 101 153 398 82 599 235 997
Longtermborrowings 153 398 86 374 239 772 153 398 82 599 235 997
Deferredtaxliabilities - 34 329 34 329 - - -
Net asset value 261 433 470 482 731 915 263 452 432 297 695 749
-
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34
A
N
N
U
A
L
R
E
P
O
R
T
2
0
1
0
Z
A
M
B
IA
SU
G
A
R
P
lc
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2010 (continued)
10. Segmental analysis (continued)
COMPANY
Year to 31 March 2009 Sugar
production
Cane
growing
TOTAL
ZK'million ZK'million ZK'million
Revenue 425 070 107 408 532 478
Prot before taxation 28 202 49 846 78 048
Property, plant and equipment 844 498 271 214 1 115 712
Balanceatbeginningofyear 355 809 175 983 531 792
Additionsatcost 504 369 197 117 701 486
Transfertocaneroots (91 657) (91 657)
Depreciationchargefortheyear (13 695) (9 826) (23 521)
Netbookvalueofdisposals (1 985) (403) (2 388)
Cane roots - 162 595 162 595
Deferred tax asset 27 804 3 233 31 037
Current assets 208 923 222 195 431 118
Inventories 52 226 17 409 69 634
Growingcane - 201 783 201 783
Factoryoverhaulcosts 20 256 - 20 256
Tradeandoth erreceivables 16 6 65 3 0 03 19 668
Currenttaxassets - - -
Cashandcashequivalents 119 777 - 119 777
Current liabilities 236 588 92 693 329 281
Tradeandoth erpayables 63 021 15 755 78 776
Shorttermportionofborrowings 115 411 62 145 177 556
Amountsduetorelatedparties 55 114 13 779 68 893
Provisions 3 042 1 014 4 056
Non-current liabilities
Longtermborrowings 635 563 342 226 977 789
Net asset value 209 073 224 319 433 392
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35
A
N
N
U
A
L
R
E
P
O
R
T
2
0
1
0
Z
A
M
B
IA
SU
G
A
R
P
lc
11. Property, plant and equipment
Leaseholdland and
buildings
Plant andmachinery
Motorvehicles
Furnitureand fittings
Capitalwork in
progress
Total
ZK'million ZK'million ZK'million ZK'million ZK'million ZK'million
ROUP
Cost
Balanceat1April2009 332349 769834 72018 11773 38792 1224766
Additions - - - - 158768 158768
Acquisitionofbusiness 80118 22897 359 90 - 103464
Transfers 376 45 140747 7196 2020 (18760 8) -
Transferto caneroots - - - - (1703) (1703)
Disposals (4070) - (9879) (774) - (14723)
Reclassication 75685 (81204) 2214 3305 - -
Balance at 31 March 2010 521 727 852 274 71 908 16 414 8 249 1 470 572
Depreciation
Balanceat1April2009 20323 38764 39243 10724 109054
Chargeforyear 10279 38956 12116 2713 64064
Disposals (252) - (4954) (718) (5924)
Balance at 31 March 2010 30 350 77 720 46 405 12 719 167 194
Net carrying amount
Balance at 31 March 2010 491 377 774 554 25 503 3 695 8 249 1 303 378
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36
A
N
N
U
A
L
R
E
P
O
R
T
2
0
1
0
Z
A
M
B
IA
SU
G
A
R
P
lc
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2010 (continued)
11. Property, plant and equipment (continued)
Leaseholdland and
buildings
Plant andmachinery
Motorvehicles
Furnitureand fittings
Capitalwork in
progress
Total
ZK'million ZK'million ZK'million ZK'million ZK'million ZK'million
COMPANY
Cost
Balanceat1April2008 59169 76220 52354 11432 425232 624407
Additions - - - - 701486 701486
Transfers 273180 696 692 260 56 341 (996269) -
Transfertocaneroots - - - - (91657) (91657 )
Disposals - (3078) (6392) - - (9470)Balanceat1April2009 332 349 769 834 72 018 11 773 38 792 1 224 766
Additions - - - - 155589 155589
Transfers 37510 140746 5856 2020 (186132) -
Disposals (4070) - (6224) (774) - (11068)
Reclassication 75685 (81204) 2214 3305 - -
Balance at 31 March 2010 441 474 829 376 73 864 16 324 8 249 1 369 287
Depreciation
Balanceat1April2008 16388 29422 37448 9357 92615Chargeforyear 3935 10435 7784 1367 23521
Disposals - (1093) (5989) - (7082)
Balanceat1April2009 20 323 38 764 39 243 10 724 109 054
Chargeforyear 10157 38956 7519 2712 59344
Disposals (252) - (4290) (717) (5259)
Balance at 31 March 2010 30 228 77 720 42 472 12 719 163 139
Net carrying amount
Balance at 31 March 2010 411 246 751 656 31 392 3 605 8 249 1 206 148
Balanceat31March2009 312 026 731 070 32 775 1 049 38 792 1 115 712
Expenditureonassetsunderconstructionisinitiallyshownascapitalworkinprogressandistransferredtotherelevantclassof
assetwhencommissioned.
InaccordancewithSection193oftheCompaniesAct, 1994the Registerof LandandBuildingsisavailable forinspectionby
membersandtheirdulyauthorisedagentsattheregisteredoceoftheCompany.
Following thecompletion of theexpansionprogramme andthe nalisation of thecapitalisationof theexpansionassets,a
reclassicationofassetshasbeenmadesoastoproperlyreecttheexpansionassetsintheircorrectassetcategories.
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A
N
N
U
A
L
R
E
P