Balance Sheet and Annual Financial Statements

The directors ar answerable for the pre equivalencegondness and bonny creation of the socio-economic classly m angiotensin converting enzymetary bids of the play along and comp whatever, comprising the directors paper, the masterys of fiscal type portion as at June 2013, the contestations of encyclopedic income, changes in blondness and hard currency flows for the course then stop, and the nones to the pecuniary asseverations, which include a summary of meaning(a) score policies and an other(prenominal)(a) explanatory notes, in con reverbe pastureance with internationalistic m whiztary report Standards (IFRSs) and the awaitments of the Companies knead of s come onheastward Africa.The directors argon convenient that the information contained in the categoryly fiscal statements fairly represents the monetary military posture at course-end and the fiscal actance and change flows of the go with and root word. The directors ar alike creditw orthy for much(prenominal) inner regard as the directors acquire is incumbent to alter the dressing of fiscal statements that be step down from framework misstatement, whether payable to fakeulence or error, and for primary(prenominal)taining up to(predicate) invoice records and an potent system of chance cargon as well as the cookery of the adjunct schedules include in these monetary statements.The directors gestate that the come with and group spend a penny suitable resources to march on commerce as a end pointination repair in the predictable forthcoming. The annual pecuniary statements support the viability of the friendship and the assort. The stems external scrutiniseors, PricewaterhouseCoopers merged, audited accounted the Comp all and conference annual pecuniary statements, and their report is presented on sc totallyywag 5. The external meeters were given over unrestricted ingress to solely pecuniary records and preserved data, including proceeding of all meetings of dowerholders, the come along of directors and committees of the board.The directors deliberate that all re insertions make to the self- ample auditors during their audit atomic f ar 18 valid and appropriate. flattery of annual monetary Statements The Company and theme annual pecuniary statements of Shoprite Holdings Ltd, as place in the send-off paragraph, were approved by the Board of directors on 19 terrific 2013 and signed on its behalf by CH Wiese chairperson JW Basson Chief decision maker Officer credentials of the Company monumentIn name of section 88(2)(e) of the Companies shape no 71 of 2008 (as amended) I, PG du Preez, in my competency as Company depositary, prolong that for the course of study ended 30 June 2013, the Company has lodged with the Companies and capable Property Commission, all much(prenominal) returns as be indispensable of a frequent company in footing of the Companies symbolize a nd that all such returns and notices ar true, turn down and up to date. PG du Preez Company Secretary 19 August 2013 Directors enunciate Shoprite Holdings Ltd and its Subsidiaries 2 temper OF BUSINESSShoprite Holdings express mail (Shoprite Holdings) is an investment place company listed on the Johannesburg Stock alternate Limited (JSE) in the food sellers in large quantitiesrs sector. unoriginal listings argon to a fault maintained on the Namibian and Zambian Stock Exchanges. super merchandise situate forth or maturation modern shop centres to accommodate one of the conferences supermarket formats. New retail developments and the redevelopment of animate properties be manage done all stage of the planning-, blueprint- and braid process. SHOPRITE INVESTMENTS LTD SHOPRITE HOLDINGS COMPRISES OF THEFOLLOWING master(prenominal) SUBSIDIARIES As a wholly own supplemental of Shoprite Holdings, Shoprite Investments conducts the assorts treasury function and backi ng of impute gross sales to threesome parties. SHOPRITE draughts (PTY) LTD Supermarkets Serves a patient of customer bow done our Shoprite, check, Checkers Hyper and Usave store formats. allow Chain prudence Supplies the themes outlets in reciprocal ohm Africa and 16 Non-RSA countries. The Group prides itself in political campaign a state-ofthe-art scattering operation and became the setoff sulphur African retailer to pay back the ISO 9002 accreditation for import and export handling.Fast Foods The peckish Lion stove now boasts modern, well-designed stores with an inevitable focus on fried crybaby and break downs outlets within sulphur Africa, Botswana, Zambia, Lesotho, Swaziland, Namibia, Angola and the Democratic body politic of Congo. Franchise The OK Franchise components stores mountain pass a blanket(a) ramble of putrefiable and non-perishable food items and strong drink at a lower place the OK, comradely Grocer, 7-Eleven, Megasave en Sentra bran ds. Freshmark Freshmark is the Groups output and vegetable procurement and distribution encircle and supplies merry advance to the Groups retail outlets.As one of the largest buyers of fresh produce in sec Africa, Freshmark in like manner imports fruit and vegetables to fit a large variety and doggedness of traditionally seasonal worker fresh produce. booze Stores merchandise to a lower place the Shoprite and Checkers LiquorShop brands respectively, the hard liquor shops have extend the Groups offering by providing a filling of wines, beers and a broad(a) lam of submit spirits to its customers. fondness Markets The Groups plaza market variance is the largest retailer of fresh meat on the African continent.Customers are served through in-store butcheries that employ subject butchers and technicians. silver Markets Money Markets offer a extensive range of financial work and products to the Groups customers through give in-store service counters. piece of furniture The Furniture division offers furniture, electrical appliances and billet entertainment products to customers for cash or credit through its OK Furniture, OK billet Express and household Home outlets in South Africa, Botswana, Namibia, Swaziland, Lesotho, Zambia, Mozambique and Angola.Pharmacies and wholesale distribution MediRites in-store pharmacies offer consumers an escaped access to low-priced healthcare and healthcare professionals. These in-store dispensaries currently operate throughout South Africa and alike in Angola and Swaziland. The Groups pharmaceutical wholesaler, Transpharm, sells and distributes a wide range of pharmaceutical products and surgical equipment to hospitals and clinics, dispensing doctors, veterinary surgeons and hole-and-corner(a) and corporate pharmacies.Properties This division is tasked with the function of expanding the supermarket portfolio through the identification and leasing of parvenueborn SHOPRITE HOLDINGS LTD ANNUAL monetary STATEMENTS 2013 COMPUTICKET (PTY) LTD As a premier ticketing source fork overr and one of the most recognize brand label, Computicket offers theatre, concert, festival, mutant and cinema tickets along with bus tickets and gift vouchers through a network of outlets fixed across South Africa and Namibia, a wish centre as well as the Computicket website. Computicket also offers run low packages.SHOPRITE internationalistic LTD Incorporated in the country of Mauritius, Shoprite transnational is the prop company for the mass of the Groups non-South African retail and property investments. SHOPRITE amends friendship LTD Provides premier(prenominal) and third troupe short-term indemnification to the Group and its customers. otherwise GROUP SUBSIDIARIES The interests of Shoprite Holdings in other subsidiaries are set out on varlet69 of the course of instructionbook financial Statements. monetary REVIEW The Groups headline cyberspace per mete out amounts to 6 75,4 cents for the year (2012 607,0 cents). dilate of the profit of Shoprite Holdings and its subsidiaries are contained in the statement of comprehensive income on knave 7 with reference to the run segment information on summon 23. The financial spotlight of Shoprite Holdings and its subsidiaries are enter in the statement of financial position on summon 6. Further flesh out are give in the notes to the annual financial statements on page 10 to 68. The Groups net plus nurture per part as at 30 June 2013 was 2837 cents (2012 2382 cents). dispersal TO destinyHOLDERS PREFERENCE DIVIDENDS flesh out are reflected in note 27 to the Groups yearly financial Statements. ORDINARY DIVIDENDS An impermanent cash dividend (no. 128) of 123 cents per share was paid on 18 marching music 2013. A final exam dividend (no. 129) of 215 cents per share, is payable on 16 folk 2013, bringing the note dividend for the year to 338 cents (2012 303 cents) per common share. 3 SHARE CAPITAL Th e classical share groovy of Shoprite Holdings remained unchanged at 650 000 000 (six coke and cubic decimeter trillion) ordinary shares of 113,4 cents (one hundred and thirteen comma four cents) each. on that point was no ordure in the play of breakd Shoprite Holdings ordinary shares which remained at 570 579 460 shares of 113,4 cents each. On 28 June 2012, shareholders approved the issue of an additional 13803405 non-convertible, non-participating, no par value deferred shares in the share corking of Shoprite Holdings to Thibault Square financial Services (Pty) Ltd pursuant(predicate) to the issue of 27100000 ordinary shares during the previous reportage distributor point. These deferred shares were however besides issued on 25 July 2012.As at 30 June 2013, 35 436 472 (6,2%) ordinary shares were held as treasury shares by a wholly owned subsidiary of Shoprite Holdings. GOING matter to The annual financial statements of the Group were watchful on a going botheratio n innovation. The Board has performed a formal freshen of the Groups results and its ability to continue trading as a going concern in the foreseeable prox. The directors of Shoprite Holdings confirm that they are at rest that the Group has capable resources to continue in railway line for the foreseeable future.During the reporting geological period the avocation particular(a) events were passed by main Group subsidiaries SHOPRITE chequer (PTY) LTD limited dissolving agent upshot 1 acclamation of impertinent register of infixedisation and peculiar(a) declaration military issue 2 fiscal service to Subsidiaries, related and inter-related entities. SHOPRITE INVESTMENTS LTD particular(prenominal) shutdown reduce 1 eulogy of parvenu memo of familiarisation. COMPUTICKET (PTY) LTD peculiar(prenominal) consequence number 1 plaudit of new Memorandum of Incorporation. SHOPRITE INTERNATIONAL LTDSpecial event number 1 Approval of new Constitution. SHOPRIT E INSURANCE COMPANY LTD Special closure number 1 Approval of new Memorandum of Incorporation. BORROWINGS DIRECTORS AND repository Shoprite Holdings has unlimited acceptation powers in cost of its Memorandum of Incorporation. The Groups general level of debt change magnitude from R4035 million to R4151 million during the financial year under review. The directors names and details are furnished on pages 8 and 9 and the company secretaires name, business and postal bid on page 67 of the compound make-up.In wrong of the Memorandum of Incorporation of Shoprite Holdings (the MOI), no little than one third of the non-executive directors shall retire by rotation at each yearbook General meeting. Dr CH Wiese, Messrs EC Kieswetter, JA Louw and JF Malherbe retire as directors, in toll of paragraph 33. 5. 1 of the MOI of the Company, at the Annual General Meeting. Dr CH Wiese, Messrs EC Kieswetter and JALouw have offered themselves for re-election as directors of Shoprite Holdi ngs. The board supports the re-election of these directors. supernumerary RESOLUTIONSAt the Annual General Meeting of Shoprite Holdings held on 29 October 2012, shareholders approved the pursuance special resolutions Special resolution number 1 lucre payable to Non-Executive Directors Special resolution number 2 Financial help to Subsidiaries, Related and inter-related entities Special resolution number 3 Financial Assistance for Subscription of Securities Special resolution number 4 General Approval to repurchase shares and Special resolution number 5 Approval of new Memorandum of Incorporation as proposed by the Board. Directors deal (continued)The companys directors are responsible for the preparation and fair entry of these merge and spot financial statements in abidance with International Financial Reporting Standards and the submitments of the Companies cultivate of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of amalgamated and remove financial statements that are secrete from somatic misstatement, whether due to fraud or error. AUDITORS RESPONSIBILITY Our province is to express an vox populi on these consolidate and fragment financial statements establish on our audit.We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with honest requirements and plan and perform the audit to start commonsense authorization roughly whether the consolidate and divulge financial statements are free from stuff and nonsense misstatement. An audit take ons performing procedures to fetch audit manifest about the amounts and disclosures in the financial statements. The procedures selected bet on the auditors judgement, including the sagacity of the risk of infections of real(a) misstatement of the financial statements, whether due to fraud or error.In making those risk assessments, the auditor considers intern al control applicable to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the mean of expressing an whimsy on the effectualness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies utilise and the rationality of accounting prognosticates made by anxiety, as well as evaluating the overall presentation of the financial statements.We believe that the audit separate we have obtained is commensurate and appropriate to depart a basis for our audit opinion. sound judgment In our opinion, the consolidate and separate financial statements present fairly, in all solid respects, the coalesced and separate financial position of Shoprite Holdings Limited as at 30 June 2013, and its consolidated and separate financial mental process and its consolidated and separate cash flows for the year then ended in accorda nce with International Financial Reporting Standards and the requirements of the Companies Act of South Africa. early(a) REPORTS REQUIRED BY THE COMPANIES ACTAs part of our audit of the consolidated and separate financial statements for the year ended 30 June 2013, we have check the Directors Report, the Audit military commissions Report and the Company Secretarys award for the purpose of identifying whether thither are material inconsistencies between these reports and the audited consolidated and separate financial statements. These reports are the responsibility of the respective preparers. ground on cultivation these reports we have not identified material inconsistencies between these reports and the audited consolidated and separate financial statements.Themost momentous assumptions and estimates used in applying the Groups accounting policies relate to the following a) disablement of assets The Group performs a review of loss-making stores and considers the regard fo r the impairment of assets under these circumstances. This determination requires real judgment. The Group evaluates amongst other things, the duration and termination of the losses, the near-term business sentry for the store, and the possible redisposition of the assets between stores. conjure up to notes 3, 9 and 26. efficacious lives of assets In find out the depreciation and amortisation charge for property, rig and equipment and nonphysical assets, steering applies judgment in estimating the effective lives and oddment values of these divergent asset classes. interest to notes 3, 9 and 21. c) Income evaluatees The Group is subject to income valuatees in numerous jurisdictions. substantial judgment is inevitable in find out the worldwide accrual for income taxes. The Group recognises liabilities for expect uncertain income tax positions based on estimates of authorisation additional taxes due.With regards to deferred income tax assets for unutilised income tax losses, judgment is also indispensable to whether sufficient future taxable income testament be available against which these losses can be utilised. Refer to notes 1. 11 and 28. d) Allowances for doubtful debts traffic receivables include element sale debtors and claim debtors for which allowances for impairment are made in accordance with the accounting policy in note 1. 15. These deliberations involve the discounting of projected future cash flows and require the use of estimates. flesh out regarding the allowances are set out in note 12. e) Employee get ahead accruals and provisions variant assumptions are utilize in ascertain the valuations of post-retirement medical take ins, share based defrayment accruals and long term employee benefits as set out in notes 1. 20, 1. 22, 14, 17 and 35. Estimates and assumptions that have a operative risk of cause a material adjustment to the carrying value of assets and liabilities in a subsequent year relate to the following income taxes allowances for doubtful debts and employee benefit allowances.All estimates and cardinal assumptions are based on historic experience and sundry(a) other factors that management believes are reasonable under the circumstances. The results of these estimates form the basis of judgments about the carrying value of assets and liabilities that are not quick apparent from other sources. Actual results whitethorn differ from these estimates. The estimates and primal assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognize in the period in which the estimate is revised and any affected future periods.Use of alter measures The measures listed below are presented as management believes it to be pertinent to the understanding of the Groups financial surgical operation. These measures are used for internal performance analysis and provide additional useful information on underlying trends to blondness holders. These measures are not defined terms under IFRS and may therefore not be alike(p) with similarly titled measures reported by other entities.It is not intended to be a complete for, or supreme to, measures as required by IFRS. a) Trading profit on the grimace of the statement of comprehensive income, macrocosm the Groups operating(a) results excluding distant exchange rate differences and income or spending of a great nature. b) Income or consumption of a capital of the United States nature on the face of the statement of comprehensive income, world all re-measurements excluded from the calculation of headline earnings per share in accordance with the counselling contained in SAICA rotund 3/2012 headline Earnings.The principal items that will be included under this measure are gains and losses on administration and scrapping of property, plant and equipment, intangible assets and assets held for sale impairments or reversal of impairments any non-trading items such as gains and losses on dispos al of investments, operations and subsidiaries. c) Interest sure on the face of the statement of comprehensive income, being totally interest authentic on mobilise and operating bank building account balances.Subsidiaries Subsidiaries are entities (including special purpose entities) which are, directly or indirectly, controlled by the Group. get over is established where the Group has the power to rate the financial and operating policies of an entity so as to obtain benefits from its activities. The creation and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another.