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Directors: B L Nkomo (Chairman), S A Munyeza (Group Chief Executive)*, E A Fundira, W T Kambwanji, A Makamure, G. Manyere, N G Maphosa, N Mangwiro (Group Finance Director)*, T Ndebele, H Nkala, T Nuy, N R Ramikosi. *Executive For investor information visit our website: www.africansunhotels.com Revenue Occupancy ADR EBITDA Gearing All figures in US$ Note As at 30 Sept 2014 Audited As at 30 Sept 2013 Restated As at 30 Sept 2012 Restated Assets Non-current assets Property and equipment 27,678,256 32,116,383 26,566,875 Biological assets 253,715 220,651 274,678 Investment in associate - 6,067,253 17,588,834 Deferred income tax assets 1,251,171 499,880 - Trade and other receivables 612,046 526,374 238,665 29,795,188 39,430,541 44,669,052 Current assets Inventories 1,644,490 1,643,660 1,472,626 Trade and other receivables 6,534,275 8,176,350 8,741,096 Cash and cash equivalents (excluding bank overdrafts) 14 2,734,576 4,229,079 4,603,809 10,913,341 14,049,089 14,817,531 Non-current assets held for sale 17 7,347,178 4,354,381 - 18,260,519 18,403,470 14,817,531 Total assets 48,055,707 57,834,011 59,486,583 Equity and liabilities Equity attributable to owners of the company Share capital 8,314,729 8,314,729 8,314,729 Share premium 24,734,304 24,734,304 24,734,304 Other reserves 1,273,921 5,135,328 5,135,328 Equity settled share based payments reserve 100,856 20,171 - Foreign currency translation reserve (2,508,995) (1,068,659) (1,038,566) Revaluation reserve - 249,706 430,871 Accumulated losses (21,351,348) (23,132,766) (14,303,293) Total equity 10,563,467 14,252,813 23,273,373 Liabilities Non-current liabilities Trade and other payables 2,203,358 1,758,132 - Borrowings 6 6,742,794 8,093,067 6,443,381 Deferred income tax liabilities 4,536,415 4,604,007 4,080,590 13,482,567 14,455,206 10,523,971 Current liabilities Trade and other payables 12,530,088 13,784,156 10,621,284 Provisions and other liabilities 18 873,635 1,113,930 1,418,073 Borrowings 6 10,605,950 14,227,906 13,649,882 24,009,673 29,125,992 25,689,239 Total liabilities 37,492,240 43,581,198 36,213,210 Total equity and liabilities 48,055,707 57,834,011 59,486,583 8. SEGMENT ANALYSIS (CONTINUED) All figures in US$ Year Ended 30 Sept 2014 Year Ended 30 Sept 2013 Profit / (loss) before income tax Botswana 1,920 - Ghana (1,913,606) (2,687,574) South Africa and Mauritius 312,463 219,063 Zimbabwe (1,505,362) (6,337,425) (3,104,585) (8,805,936) Total assets Botswana 119,652 119,652 Ghana 2,693,435 2,503,827 South Africa and Mauritius 1,953,790 2,722,876 Zimbabwe 43,288,830 52,487,657 48,055,707 57,834,012 Total liabilities Botswana 243,059 243,058 Ghana 2,014,416 1,666,023 South Africa and Mauritius 1,766,447 1,926,323 Zimbabwe 33,468,318 39,745,794 37,492,240 43,581,198 EBITDA has been calculated excluding exceptional charges relating to fair value adjustments and impairments for 2014 and the comparatives. Nigeria has been removed from the segment information, as the entity is now accounted for using the equity method following adoption of IFRS 11 as discussed under note 3. 9. INCOME TAX CREDIT / (EXPENSE) Current income tax - - Deferred income tax 818,883 (23,537) Credit / (charge) for the period 818,883 (23,537) 10. BASIC AND HEADLINE EARNINGS PER SHARE Loss attributable to owners of the company (2,285,702) (8,829,473) Adjusted for; Fair value adjustment and impairment of assets classified to non-current assets held for sale 3,342,087 7,627,895 Fair value adjustment on biological assets (33,064) 54,027 Recycled from other comprehensive income (249,706) (181,165) Headline earnings / (loss) 773,615 (1,328,716) Number of shares in issue 831,472,953 823,940,874 Weighted average number of shares in issue 830,217,607 823,940,874 Weighted average number of shares in issue for diluted earnings 854,520,614 848,243,881 Basic loss per share: cents (0.28) (1.07) Diluted loss per share: cents (0.27) (1.04) Headline earnings / (loss) per share: cents 0.09 (0.16) Diluted headline earnings / (loss) per share: cents 0.09 (0.16) Weighted average number of shares for diluted earnings are calculated by adjusting the weighted average number of ordinary shares with the potentially dilutive ordinary shares. As at 30 September 2014, there were 32 926 655 potential dilutive share options (2013: 32 926 655) which, were granted on 4 July 2013. For the share options, a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company’s shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares determined using the described method is compared with the number of shares that would have been issued assuming the exercise of the share options. 11. CHANGES IN WORKING CAPITAL All figures in US$ Year Ended 30 Sept 2014 Year Ended 30 Sept 2013 Inventories ( 43 688) ( 171 034) -increase in inventories - per statement of financial position ( 829) ( 171 034) -inventory written off during the year ( 42 859) - Current trade and other receivables, and trade and other payables ( 241 628) 3 388 095 -decrease / (increase) in current trade and other receivables - per statement of financial position 1 642 073 ( 250 913) -(decrease) / increase in current trade and other payables - per statement of financial position ( 1 494 363) 2 858 728 -accrued interest prior year 338 181 167 670 -foreign translation differences ( 727 519) 612 610 Increase in non-current trade and other receivables ( 189 849) ( 568 381) -decrease / (increase) per statement of financial position ( 85 672) ( 287 709) -adjusted to current ( 21 402) - -allowance for impairment of housing loans and motor vehicle loans ( 82 775) ( 280 672) Increase in non-current trade and other payables 445 256 1 758 132 Net changes in working capital (29,909) 4,406,812 12. FINANCE COSTS PAID For the purposes of the statement of cashflows, finance costs paid were computed as follows; Net finance costs per income statement 3,538,132 3,078,510 Accrued finance costs from prior year 124,325 167,670 Deferred finance costs current year - - Accrued finance costs current year - (124,325) Accrued borrowing costs capitalized 213,856 (213,856) Accrued interest on statutory liabilities - (208,745) Finance costs paid and capitalized - 1,048,964 Finance costs paid 3,876,313 3,748,218 Finance income on bank deposits (3,952) (5,723) Net finance costs paid 3,872,361 3,742,495 13. INVESTING ACTIVITIES Assets additions and disposals Additions to property and equipment 3 943 632 6 953 068 Additions excluding borrowing costs capitalised - 1 048 964 Borrowing costs capitalised (note 12) 3,943,632 8,002,032 Disposals Cost of property and equipment disposed 839,002 241,224 Accumulated depreciation of property and equipment disposed (387,081) (124,197) Net book amount 451,921 117,027 Loss on disposal of property and equipment (267,332) (5,595) Proceeds accounted for under receivables - (48,611) Cash proceeds from disposal of property and equipment 184,589 62,821 14. CASH AND CASH EQUIVALENTS For the purposes of the statement of cash flows, cash and cash equivalents comprise the following; Cash and bank balances 2,734,576 4,229,079 Bank overdrafts (1,261,632) (2,068,288) Cash security on long-term loan (369,453) (552,668) Cash and cash equivalents at the end of the period 1,103,491 1,608,123 The cash security on long-term loan of US$369 453 (2013: US$552 668) has been deducted from cash and bank balances to determine cash and cash equivalents as the use of the cash is restrictive in nature and is not available within a 90 day period. The cash is held in an offshore account as security for a foreign loan which has an outstanding balance of US$4.31 million. The amount equates to 8% of the outstanding loan. Cash from this restricted account is available only to the extent that the balance is more than 8% of the loan outstanding. 15. RELATED PARTY TRANSACTIONS All figures in US$ Year Ended 30 Sept 2014 Year Ended 30 Sept 2013 (i) Lease rentals paid to Dawn Properties Limited (Dawn) 2,094,259 2,123,310 African Sun Limited owns 16.54% (2013: 28.54%) of the shares in Dawn Properties Limited. The investment was classified as non-current assets held for sale following the approval to dispose by the shareholders on 21 March 2014. Lease rentals relate to the leases of 8 hotels rented from Dawn. All leases with Dawn are at arms length. (ii) Balances arising from transactions with related parties Payables - rentals 283,381 397,372 The payables arose from rentals charged by Dawn Properties Limited on the 8 hotels leased by African Sun. The rentals are due one month after billing and bear no interest. 16. EXPENSES BY NATURE Cost of sales 15,899,794 15,302,031 Depreciation, usage and amortization 3,078,095 2,213,420 Operating lease costs 8,803,248 8,315,424 Repairs and maintenance 2,029,883 2,258,522 Other expenses 23,035,025 25,995,991 Total cost of sales and administrative expenses 52,846,045 54,085,388 The cost of inventories recognized as expense and included in “cost of sales” amounted to US$5 522 995 (2013: US$5 394 011). Items of inventory amounting to US$42 859 were impaired during the year (2013: US$nil). These items were in the books of the Group. 17 NON-CURRENT ASSETS HELD FOR SALE All figures in US$ As at 30 Sept 2014 As at 30 Sept 2013 Opening balance - Assets classified as held for sale from investment in associate 4,354,381 4,224,720 Assets classified as held for sale from property and equipment 3,171,087 - Total assets of a disposal group classified as held for sale 4,046,430 129,661 Sold during the year - - (4,224,720) Closing balance 7,347,178 4,354,381 The 16.54% investment in Dawn Properties Limited disposal was approved during the year at a price of US$0.0147 per share. Subsequent to year end, a disposal of 69 749 322 shares was completed on 17 December 2014 at a price of US$0.0147 per share. During the year the Group classified as non-current assets held for sale its fixed property (staff houses) following approval of the disposal by the Board of Directors. Consummation of the disposal is expected by 30 September 2015. The balance of US$129 661 under non-current assets held for sale relates to Fothergill Island operating assets which were classified as held for sale in 2013. The disposal had not been completed as at 30 September 2014 and it is anticipated that the disposal will go through before 30 September 2015. 18. PROVISIONS The provision balance is made up of the following: All figures in US$ As at 30 Sept 2013 Utilised provision As at 30 Sept 2014 Leave pay 749,463 (240,295) 509,168 Contractual claims 364,467 - 364,467 1,113,930 (240,295) 873,635 19. CAPITAL COMMITMENTS All figures in US$ As at 30 Sept 2014 As at 30 Sept 2013 Authorised by Directors and contracted for - 630,042 Authorised by Directors, but not contracted for 4,490,080 4,872,268 4,490,080 5,502,310 Capital commitments will be financed from normal operating cash flows. The reduction from prior year is a result of completion of the Zimbabwe refurbishment and the Ghana hotel. 20. EVENTS AFTER REPORTING DATE Part of the 16.54% investment in Dawn Properties Limited which was classified under non-current assets held for sale as at 30 September 2014 (note 16) was sold subsequent to year end on 17 December 2014 at a price of US$0.0147 per share and proceeds of US$1 million were received. The rest of the investment is expected to be sold before 31 March 2015. Group Statement of Cashflows All figures in US$ Note Year Ended 30 Sept 2014 Audited Year Ended 30 Sept 2013 Restated Cash flows from operating activities Loss before income tax (3,104,585) (8,805,936) Interest expense 3,534,180 3,072,787 Depreciation and other non-cash items 6,336,747 9,408,909 Changes in working capital 11 (29,909) 4,406,812 Cash generated from operations 6,736,433 8,082,572 Interest received 3,952 5,723 Interest paid 12 (3,876,313) (3,748,218) Net cash generated from operating activities 2,864,072 4,340,077 Cash flows from investing activities Additions to property and equipment - excluding borrowing costs capitalised 13 (3,943,632) (6,953,072) Proceeds from disposal of property and equipment 13 184,589 62,821 Proceeds from sale of non-current assets held for sale 17 4,224,720 - Dividend income 39,602 - Net cash generated from/ (used in) investing activities 505,279 (6,890,251) Cash flows from financing activities Proceeds from sale of treasury shares 205,713 - Proceeds from short-term borrowings 891,856 1,400,820 Proceeds from long-term borrowings 1,713,572 4,144,210 Deposit utilised from debt service reserve account 183,215 195,691 Repayment of short-term borrowings (3,707,156) (494,927) Repayment of long-term borrowings (3,063,844) (2,494,524) Cash (used in) / generated from financing activities (3,776,644) 2,751,270 Net (decrease) / increase in cash and cash equivalents (407,293) 201,096 Cash and cash equivalents at beginning of the year 1,608,123 1,459,663 Exchange loss on cash and cash equivalents (97,339) (52,636) Cash and cash equivalents at end of the year 14 1,103,491 1,608,123 NOTES TO THE ABRIDGED FINANCIAL STATEMENTS 1. BASIS OF PREPARATION The Group’s financial statements have been prepared in accordance with International Financial Reporting Standards, (“IFRS”) and the International Financial Reporting Interpretations Committee, (“IFRIC”) applicable to companies reporting under IFRS, the Zimbabwe Companies Act (Chapter 24:03) and the relevant Statutory Instruments (“SI”) SI 33/99 and SI 62/96 and the Zimbabwe Stock Exchange Listing Rules. The financial statements have been prepared under the historical cost convention as modified by the revaluation of biological assets, property and equipment and non-current assets held for sale. 2. AUDIT OPINION The independent auditor has expressed an unqualified opinion on these financial statements, and it is available for inspection at the Company Secretary’s office. 3. CHANGE IN ACCOUNTING POLICY African Sun Limited adopted IFRS 11, “Joint arrangements” on 1 October 2013. IFRS 11, “Joint Arrangements” focuses on the rights and obligations of the parties to the arrangement rather than its legal form. There are two types of joint arrangements: joint operations and joint ventures. Joint operations arise where the investors have rights to the assets and obligations for the liabilities of an arrangement. A joint operator accounts for its share of the assets, liabilities, revenue and expenses. Joint ventures arise where the investors have rights to the net assets of the arrangement; joint ventures are accounted for under the equity method. Proportional consolidation of joint ventures is no longer permitted. Impact of the new standard on the Group’s joint arrangements The Victoria Falls Hotel Partnership - 50% joint control The Directors reviewed and assessed the classification of the Group’s investment in The Victoria Falls Hotel Partnership in accordance with the requirements of IFRS 11, Joint Arrangements and concluded that the Group’s investment in The Victoria Falls Hotel, which was classified as a joint venture under IAS 31, “Interest in Joint Ventures” and accounted for using the proportional consolidation method, is a joint operation under IFRS 11, therefore the Group continues to account for its share of assets, liabilities, income and expenses proportionately. West African Sun Hotels Limited - significant influence The Group has 50% shareholding in West African Sun Hotels Limited (“WASHL”). However, following the adoption of IFRS 11, Joint Arrangements it was determined that the Group has significant influence over WASHL, and not joint control. The significant influence in the entity has been determined due to the following reasons; -the Group has representation of two Board members to the WASHL Board, from a total of five -the voting arrangement of WASHL does not require a unanimous agreement between the shareholders, hence no joint control; and -the chairman is an independent appointee. Based on the above, the Group now accounts for its investment in WASHL in terms of IAS 28 (revised), “Investment in Associates”. According to the revised standard, the key to the definition of an associate is “significant influence”, which is the power to participate in the financial and operating decisions of the investee but not control or joint control over those policies. Significant influence is presumed to exist where an entity holds more than 20% of the voting power. In terms of IAS 28 (revised), “Investment in Associates”, entities with significant influence over an investee are required to account for their investments in an associate using the equity method. Before the adoption of IFRS 11, Joint Arrangements, the Group used to account for WASHL using the proportional consolidation method. The new standard has been applied retrospectively, to show the impact of accounting for WASHL using the equity method in terms of IAS 28 (revised), Investment in Associates. The Group recognised its investment in the associate at the beginning of the earliest period presented (1 October 2012), as the total of the carrying amounts of the assets and liabilities previously proportionately consolidated by the Group. As at 30 September 2014, the investment was in a net liabilities position, hence a nil carrying amount in the books of the Group. 4. PRIOR PERIOD ERROR Operating lease costs (rent) The Group incurred occupational rent amounting to US$1 875 767 during the prolonged fit out stage of the new hotel in Ghana. The occupational rent was paid in line with the lease agreement, though the hotel had not yet opened.The rent had been included as part of minimum lease payments which are capitalised and are armotised over the remaining lease period upon interpreting IAS 17, “Leases”. This treatment has now been considered incorrect. As such the occupational rent paid during the prolonged fit out stage should have been expensed when it was incurred. Other pre-opening expenses The Group incurred pre-opening expenses amounting to US$724 768 in lieu of the new hotel in Ghana during the year ended 30 September 2013. As per Group policy, pre-opening expenses are capitalised/deferred and written off in the first year of operation of a hotel. This policy was found to be in contradiction with the International Financial Reporting Standards. The impact of correcting the error is shown below: All figures in US$ Operating lease costs (rent) US$ Other pre-opening costs US$ Total US$ Statement of financial position Assets Decrease in non-current receivables (1,636,029) - (1,636,029) Decrease in current receivables (90,891) (724,768) (815,659) Increase in deferred tax income assets 352,105 147,775 499,880 Total decrease in assets (1,374,815) (576,993) (1,951,808) Statement of comprehensive income Increase in operating expenses (1,875,767) (787,237) (2,663,004) Increase in income tax credit 352,105 147,775 499,880 Increase in loss for the year (1,523,662) (639,462) (2,163,124) 5 GOING CONCERN The Group’s EBITDA grew positively by 70% in the period under review, consolidating a discernible growth trend averaging 5% per annum since 2012. This attribute of resilience defied a generally receding operating environment. The EBITDA growth trend has demonstrated the Group’s inherent value creation capacity. The Group repaid loans amounting to US$6.8 million resulting in a 46% decrease in the the net current liabilities position to US$5.75 million down from US$10.72 million reported last year. Looking ahead, the domestic market is envisaged to remain depressed, exerting further pressure on rates and margins, but we anticipate that this will be ameliorated by: a forecasted growth in foreign arrivals; growth in the contribution of the recently opened hotel in Ghana; further efforts to reduce costs of sales and operating costs; and further debt restructuring and reduction. Based on the aforementioned, the Directors have assessed the ability of the Group to continue operating as a going concern and are of the view that the preparation of these financial statements on a going concern basis is appropriate. The appropriateness of the going concern basis is premised on: the steady improvement in operating performance recorded over the last three years; a trend that is expected to continue in the future; and the consummation of the recapitalisation and debt reduction initiatives, anticipated by the end of the next financial year. The key recapitalisation and debt reduction initiatives being pursued are outlined below: (i) disposal of 16.54% Linked Units in Dawn Properties: the disposal is expected to raise US$5.8 million, which will be used to repay short-term loans. Part of the disposal was effected on the Zimbabwe Stock Exchange on 17 December 2014 with a total value of US$1 million. The rest of the disposal expected to be completed by 30 March 2015. (ii) disposal of fixed property: the disposal is expected to raise US$4 million, which will be used to repay part of the short-term loans. Negotiations on the ground show that the disposal is likely to go through before 30 September 2015. (iii) sale of time share weeks –The Group has opted for a timeshare weeks resale by early maturing imminently expiring time share weeks that range between 3 and 6 years to expiry. The total proceeds from this disposal are expected to be at least US$2.9 million and will be used to reduce borrowings. (iv) cost reduction – after achieving a significant saving of US$1.8 million in costs during the financial year ended 30 September 2014, the Group is targeting further savings through implementation of various cost cutting initiatives. 6. BORROWINGS All figures in US$ As at 30 Sept 2014 As at 30 Sept 2013 Non-current: Foreign 3,524,875 4,207,553 Finance lease liability 35,139 - Local 3,182,780 3,885,514 Total non-current 6,742,794 8,093,067 Current: Foreign loans 3,087,500 4,148,987 Bank overdrafts 1,261,632 2,068,288 Finance lease liability 138,494 - Local loans 6,118,324 8,010,631 Total current 10,605,950 14,227,906 Total borrowings 17,348,744 22,320,973 7. SEASONALITY OF THE BUSINESS The first half of our financial year is relatively slower than the second half. This has been the trend for the past 4 years, with the first half contributing between 44% and 48% of the full year revenue. The second half dominates because it is the beginning of our international markets peak season as well as an increase in corporate and conferencing business. For the financial year under review, the first half contributed 44% to the Group’s revenue, while the second half contributed 56%. 8. SEGMENT ANALYSIS All figures in US$ Year Ended 30 Sept 2014 Year Ended 30 Sept 2013 Revenue - Ghana 2,152,788 - Zimbabwe 54,563,357 55,967,643 56,716,145 55,967,643 Earnings before interest, tax, depreciation and amortization Botswana 1,920 - Ghana (1,245,937) (2,687,574) South Africa and Mauritius 468,490 222,441 Zimbabwe 7,723,720 6,560,809 6,948,193 4,095,676 All figures in US$ Note Year Ended 30 Sept 2014 Audited Year Ended 30 Sept 2013 Restated Revenue 8 56,716,145 55,967,643 Cost of sales (15,899,794) (15,302,031) Gross profit 40,816,351 40,665,612 Other income 111,526 - Operating expenses 16 (36,946,251) (38,783,357) Other expenses (733,965) (499,708) Operating profit 3,247,661 1,382,547 Financing costs - net 12 (3,534,180) (3,072,787) Finance income 12 3,952 5,723 Finance costs 12 (3,538,132) (3,078,510) Fair value adjustment and impairment of assets classified as held for sale (3,342,087) (7,627,895) Recycled from other comprehensive income 249,706 181,165 Share of profit of investments accounted for using the equity method 274,315 331,034 Loss before income tax 8 (3,104,585) (8,805,936) Income tax credit / (charge) 9 818,883 (23,537) Loss for the year (2,285,702) (8,829,473) Other comprehensive loss net of tax: Items that may be subsequently reclassified to profit or loss Foreign currency translation reserve (1,440,336) (30,093) Comprehensive income from associate recycled to profit and loss (249,706) (181,165) Total other comprehensive loss (1,690,042) (211,258) TOTAL COMPREHENSIVE LOSS FOR THE YEAR (3,975,744) (9,040,731) Loss attributable to: Owners of company (2,285,702) (8,829,473) Total comprehensive loss attributable to: Owners of company (3,975,744) (9,040,731) Earnings per share: cents Basic loss 10 (0.28) (1.07) Diluted loss 10 (0.27) (1.04) Headline earnings / (loss) 10 0.09 (0.16) Diluted earnings / (loss) 10 0.09 (0.16) All figures in US$ Share capital Share premium Treasury shares Non- distributable reserve Equity settled share based payments reserve Foreign currency translation reserve Revaluation reserve Accumulated losses Total shareholders' equity Balance at 30 September 2012 as previously stated 8,239,409 24,056,421 - 5,888,531 - (946,582) 430,871 (14,788,708) 22,879,942 Effects of changes in accounting policy - - - - - (91,984) - 485,415 393,431 Effects of treasury shares adjustment 75,320 677,883 (753,203) - - - - - - Balance as at 30 September 2012, as restated 8,314,729 24,734,304 (753,203) 5,888,531 - (1,038,566) 430,871 (14,303,293) 23,273,373 Comprehensive loss Loss for the year as previously stated - - - - - - - (6,568,454) (6,666,349) Effects of changes in accounting policy - - - - - - - (97,895) (97,895) Effects of correcting the prior period error (note 4) - - - - - - - (2,163,124) (2,163,124) Loss for the year as restated - - - - - - - (8,829,473) (8,829,473) Other comprehensive loss Currency translation differences - - - - (30,093) - - (30,093) Recycled to profit and loss - - - - - (181,165) - (181,165) Total comprehensive loss for the year - - - - - (30,093) (181,165) - (211,258) Transactions with owners Value of employee services - - - 20,171 - - - 20,171 Balance as at 30 September 2013 as restated 8,314,729 24,734,304 (753,203) 5,888,531 20,171 (1,068,659) 249,706 (23,132,766) 14,252,813 Balance as at 1 October 2013 8,314,729 24,734,304 (753,203) 5,888,531 20,171 (1,068,659) 249,706 (23,132,766) 14,252,813 Comprehensive loss Loss for the year - - - - - - (2,285,702) (2,285,702) Other comprehensive loss Currency translation differences - - - - (1,440,336) - - (1,440,336) Recycled to profit and loss - - - - - (249,706) - (249,706) Transfer to accumulated losses - - (4,614,610) - - - 4,614,610 Total comprehensive loss for the year (4,614,610) (1,440,336) (249,706) 2,328,908 (3,975,744) Transaction with owners Proceeds from disposal of treasury shares 205,713 205,713 Loss from disposal of treasury shares - 547,490 - - - - (547,490) - Value of employee services - - - 80,685 - - - 80,685 Total transactions with owners - - 753,203 - 80,685 - - (547,490) 286,398 Balance as at 30 September 2014 8,314,729 24,734,304 - 1,273,921 100,856 (2,508,995) - (21,351,348) 10,563,467 ASL 1539

Afsun FY2014 Results

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Afsun Full Year 2014 Results

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  • Directors: B L Nkomo (Chairman), S A Munyeza (Group Chief Executive)*, E A Fundira, W T Kambwanji, A Makamure, G. Manyere, N G Maphosa, N Mangwiro (Group Finance Director)*, T Ndebele, H Nkala, T Nuy, N R Ramikosi. *Executive

    For investor information visit our website: www.africansunhotels.com

    Revenue Occupancy ADR EBITDA Gearing

    All figures in US$ Note

    As at 30 Sept 2014

    Audited

    As at30 Sept 2013

    Restated

    As at30 Sept 2012

    Restated

    Assets Non-current assetsProperty and equipment 27,678,256 32,116,383 26,566,875 Biological assets 253,715 220,651 274,678 Investment in associate - 6,067,253 17,588,834 Deferred income tax assets 1,251,171 499,880 - Trade and other receivables 612,046 526,374 238,665

    29,795,188 39,430,541 44,669,052

    Current assetsInventories 1,644,490 1,643,660 1,472,626 Trade and other receivables 6,534,275 8,176,350 8,741,096 Cash and cash equivalents (excluding bank overdrafts) 14 2,734,576 4,229,079 4,603,809

    10,913,341 14,049,089 14,817,531 Non-current assets held for sale 17 7,347,178 4,354,381 -

    18,260,519 18,403,470 14,817,531

    Total assets 48,055,707 57,834,011 59,486,583

    Equity and liabilitiesEquity attributable to owners of the companyShare capital 8,314,729 8,314,729 8,314,729 Share premium 24,734,304 24,734,304 24,734,304 Other reserves 1,273,921 5,135,328 5,135,328 Equity settled share based payments reserve 100,856 20,171 - Foreign currency translation reserve (2,508,995) (1,068,659) (1,038,566)Revaluation reserve - 249,706 430,871 Accumulated losses (21,351,348) (23,132,766) (14,303,293)Total equity 10,563,467 14,252,813 23,273,373

    LiabilitiesNon-current liabilitiesTrade and other payables 2,203,358 1,758,132 - Borrowings 6 6,742,794 8,093,067 6,443,381 Deferred income tax liabilities 4,536,415 4,604,007 4,080,590

    13,482,567 14,455,206 10,523,971

    Current liabilitiesTrade and other payables 12,530,088 13,784,156 10,621,284 Provisions and other liabilities 18 873,635 1,113,930 1,418,073 Borrowings 6 10,605,950 14,227,906 13,649,882

    24,009,673 29,125,992 25,689,239

    Total liabilities 37,492,240 43,581,198 36,213,210

    Total equity and liabilities 48,055,707 57,834,011 59,486,583

    8. SEgmENT ANALySiS (CONTiNUED)

    All figures in US$year Ended

    30 Sept 2014year Ended

    30 Sept 2013

    Profit / (loss) before income tax Botswana 1,920 - Ghana (1,913,606) (2,687,574)South Africa and Mauritius 312,463 219,063 Zimbabwe (1,505,362) (6,337,425)

    (3,104,585) (8,805,936)Total assetsBotswana 119,652 119,652 Ghana 2,693,435 2,503,827 South Africa and Mauritius 1,953,790 2,722,876 Zimbabwe 43,288,830 52,487,657

    48,055,707 57,834,012 Total liabilitiesBotswana 243,059 243,058 Ghana 2,014,416 1,666,023 South Africa and Mauritius 1,766,447 1,926,323 Zimbabwe 33,468,318 39,745,794

    37,492,240 43,581,198

    EBITDA has been calculated excluding exceptional charges relating to fair value adjustments and impairments for 2014 and the comparatives.

    Nigeria has been removed from the segment information, as the entity is now accounted for using the equity method following adoption of IFRS 11 as discussed under note 3.

    9. iNCOmE TAx CREDiT / (ExPENSE)Current income tax - - Deferred income tax 818,883 (23,537)

    Credit / (charge) for the period 818,883 (23,537)

    10. BASiC AND hEADLiNE EARNiNgS PER ShARELoss attributable to owners of the company (2,285,702) (8,829,473)Adjusted for;Fair value adjustment and impairment of assets classified to non-current assets held for sale 3,342,087 7,627,895 Fair value adjustment on biological assets (33,064) 54,027 Recycled from other comprehensive income (249,706) (181,165)

    headline earnings / (loss) 773,615 (1,328,716)

    Number of shares in issue 831,472,953 823,940,874 Weighted average number of shares in issue 830,217,607 823,940,874 Weighted average number of shares in issue for diluted earnings 854,520,614 848,243,881

    Basic loss per share: cents (0.28) (1.07)Diluted loss per share: cents (0.27) (1.04)Headline earnings / (loss) per share: cents 0.09 (0.16)Diluted headline earnings / (loss) per share: cents 0.09 (0.16)

    Weighted average number of shares for diluted earnings are calculated by adjusting the weighted average number of ordinary

    shares with the potentially dilutive ordinary shares. As at 30 September 2014, there were 32 926 655 potential dilutive share options (2013: 32 926 655) which, were granted on 4 July 2013. For the share options, a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the companys shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares determined using the described method is compared with the number of shares that would have been issued assuming the exercise of the share options.

    11. ChANgES iN wORkiNg CAPiTAL

    All figures in US$year Ended

    30 Sept 2014year Ended

    30 Sept 2013

    inventories ( 43 688) ( 171 034)-increase in inventories - per statement of financial position ( 829) ( 171 034)-inventory written off during the year ( 42 859) - Current trade and other receivables, and trade and other payables ( 241 628) 3 388 095 -decrease / (increase) in current trade and other receivables - per statement of financial position 1 642 073 ( 250 913)-(decrease) / increase in current trade and other payables - per statement of financial position ( 1 494 363) 2 858 728 -accrued interest prior year 338 181 167 670 -foreign translation differences ( 727 519) 612 610 increase in non-current trade and other receivables ( 189 849) ( 568 381)-decrease / (increase) per statement of financial position ( 85 672) ( 287 709)-adjusted to current ( 21 402) - -allowance for impairment of housing loans and motor vehicle loans ( 82 775) ( 280 672)increase in non-current trade and other payables 445 256 1 758 132

    Net changes in working capital (29,909) 4,406,812

    12. FiNANCE COSTS PAiD For the purposes of the statement of cashflows, finance costs paid were computed as follows;

    Net finance costs per income statement 3,538,132 3,078,510 Accrued finance costs from prior year 124,325 167,670 Deferred finance costs current year - - Accrued finance costs current year - (124,325)Accrued borrowing costs capitalized 213,856 (213,856)Accrued interest on statutory liabilities - (208,745)Finance costs paid and capitalized - 1,048,964 Finance costs paid 3,876,313 3,748,218 Finance income on bank deposits (3,952) (5,723)

    Net finance costs paid 3,872,361 3,742,495

    13. iNvESTiNg ACTiviTiESAssets additions and disposals

    Additions to property and equipment 3 943 632 6 953 068 Additions excluding borrowing costs capitalised - 1 048 964 Borrowing costs capitalised (note 12) 3,943,632 8,002,032

    DisposalsCost of property and equipment disposed 839,002 241,224 Accumulated depreciation of property and equipment disposed (387,081) (124,197)Net book amount 451,921 117,027 Loss on disposal of property and equipment (267,332) (5,595)Proceeds accounted for under receivables - (48,611)

    Cash proceeds from disposal of property and equipment 184,589 62,821

    14. CASh AND CASh EqUivALENTSFor the purposes of the statement of cash flows, cash and cash equivalents comprise the following;

    Cash and bank balances 2,734,576 4,229,079 Bank overdrafts (1,261,632) (2,068,288)Cash security on long-term loan (369,453) (552,668)

    Cash and cash equivalents at the end of the period 1,103,491 1,608,123

    The cash security on long-term loan of US$369 453 (2013: US$552 668) has been deducted from cash and bank balances to determine cash and cash equivalents as the use of the cash is restrictive in nature and is not available within a 90 day period. The

    cash is held in an offshore account as security for a foreign loan which has an outstanding balance of US$4.31 million. The amount equates to 8% of the outstanding loan. Cash from this restricted account is available only to the extent that the balance is

    more than 8% of the loan outstanding.

    15. RELATED PARTy TRANSACTiONS

    All figures in US$year Ended

    30 Sept 2014year Ended

    30 Sept 2013

    (i) Lease rentals paid to Dawn Properties Limited (Dawn) 2,094,259 2,123,310

    African Sun Limited owns 16.54% (2013: 28.54%) of the shares in Dawn Properties Limited. The investment was classified as non-current assets held for sale following the approval to dispose by the shareholders on 21 March 2014.

    Lease rentals relate to the leases of 8 hotels rented from Dawn. All leases with Dawn are at arms length. (ii) Balances arising from transactions with related parties

    Payables - rentals 283,381 397,372

    The payables arose from rentals charged by Dawn Properties Limited on the 8 hotels leased by African Sun. The rentals are due one month after billing and bear no interest.

    16. ExPENSES By NATURECost of sales 15,899,794 15,302,031 Depreciation, usage and amortization 3,078,095 2,213,420 Operating lease costs 8,803,248 8,315,424 Repairs and maintenance 2,029,883 2,258,522 Other expenses 23,035,025 25,995,991

    Total cost of sales and administrative expenses 52,846,045 54,085,388

    The cost of inventories recognized as expense and included in cost of sales amounted to US$5 522 995 (2013: US$5 394 011). Items of inventory amounting to US$42 859 were impaired during the year (2013: US$nil). These items were in the books of the

    Group.

    17 NON-CURRENT ASSETS hELD FOR SALE

    All figures in US$As at

    30 Sept 2014As at

    30 Sept 2013

    Opening balance - Assets classified as held for sale from investment in associate 4,354,381 4,224,720 Assets classified as held for sale from property and equipment 3,171,087 - Total assets of a disposal group classified as held for sale 4,046,430 129,661 Sold during the year - -

    (4,224,720)

    Closing balance 7,347,178 4,354,381

    The 16.54% investment in Dawn Properties Limited disposal was approved during the year at a price of US$0.0147 per share. Subsequent to year end, a disposal of 69 749 322 shares was completed on 17 December 2014 at a price of US$0.0147 per share.

    During the year the Group classified as non-current assets held for sale its fixed property (staff houses) following approval of the

    disposal by the Board of Directors. Consummation of the disposal is expected by 30 September 2015. The balance of US$129 661 under non-current assets held for sale relates to Fothergill Island operating assets which were classified as held for sale in 2013. The disposal had not been completed as at 30 September 2014 and it is anticipated that the disposal will go through before 30 September 2015.

    18. PROviSiONS The provision balance is made up of the following:

    All figures in US$

    As at 30 Sept

    2013Utilised

    provision

    As at 30 Sept

    2014

    Leave pay 749,463 (240,295) 509,168 Contractual claims 364,467 - 364,467

    1,113,930 (240,295) 873,635

    19. CAPiTAL COmmiTmENTS

    All figures in US$As at

    30 Sept 2014As at

    30 Sept 2013Authorised by Directors and contracted for - 630,042 Authorised by Directors, but not contracted for 4,490,080 4,872,268

    4,490,080 5,502,310 Capital commitments will be financed from normal operating cash flows. The reduction from prior year is a result of completion

    of the Zimbabwe refurbishment and the Ghana hotel.

    20. EvENTS AFTER REPORTiNg DATE Part of the 16.54% investment in Dawn Properties Limited which was classified under non-current assets held for sale as at 30

    September 2014 (note 16) was sold subsequent to year end on 17 December 2014 at a price of US$0.0147 per share and proceeds of US$1 million were received. The rest of the investment is expected to be sold before 31 March 2015.

    Group Statement of Cashflows

    All figures in US$ Note

    year Ended30 Sept 2014

    Audited

    year Ended30 Sept 2013

    Restated

    Cash flows from operating activitiesLoss before income tax (3,104,585) (8,805,936)Interest expense 3,534,180 3,072,787 Depreciation and other non-cash items 6,336,747 9,408,909 Changes in working capital 11 (29,909) 4,406,812 Cash generated from operations 6,736,433 8,082,572 Interest received 3,952 5,723 Interest paid 12 (3,876,313) (3,748,218)Net cash generated from operating activities 2,864,072 4,340,077

    Cash flows from investing activitiesAdditions to property and equipment - excluding borrowing costs capitalised 13 (3,943,632) (6,953,072)Proceeds from disposal of property and equipment 13 184,589 62,821 Proceeds from sale of non-current assets held for sale 17 4,224,720 - Dividend income 39,602 - Net cash generated from/ (used in) investing activities 505,279 (6,890,251)

    Cash flows from financing activitiesProceeds from sale of treasury shares 205,713 - Proceeds from short-term borrowings 891,856 1,400,820 Proceeds from long-term borrowings 1,713,572 4,144,210 Deposit utilised from debt service reserve account 183,215 195,691 Repayment of short-term borrowings (3,707,156) (494,927)Repayment of long-term borrowings (3,063,844) (2,494,524)Cash (used in) / generated from financing activities (3,776,644) 2,751,270

    Net (decrease) / increase in cash and cash equivalents (407,293) 201,096 Cash and cash equivalents at beginning of the year 1,608,123 1,459,663 Exchange loss on cash and cash equivalents (97,339) (52,636)Cash and cash equivalents at end of the year 14 1,103,491 1,608,123

    NOTES TO THE ABRIDGED FINANCIAL STATEMENTS1. BASiS OF PREPARATiON The Groups financial statements have been prepared in accordance with International Financial Reporting Standards, (IFRS)

    and the International Financial Reporting Interpretations Committee, (IFRIC) applicable to companies reporting under IFRS, the Zimbabwe Companies Act (Chapter 24:03) and the relevant Statutory Instruments (SI) SI 33/99 and SI 62/96 and the Zimbabwe Stock Exchange Listing Rules. The financial statements have been prepared under the historical cost convention as modified by the revaluation of biological assets, property and equipment and non-current assets held for sale.

    2. AUDiT OPiNiON The independent auditor has expressed an unqualified opinion on these financial statements, and it is available for inspection at the

    Company Secretarys office.

    3. ChANgE iN ACCOUNTiNg POLiCy African Sun Limited adopted IFRS 11, Joint arrangements on 1 October 2013. IFRS 11, Joint Arrangements focuses on the rights and

    obligations of the parties to the arrangement rather than its legal form. There are two types of joint arrangements: joint operations and joint ventures. Joint operations arise where the investors have rights to the assets and obligations for the liabilities of an arrangement. A joint operator accounts for its share of the assets, liabilities, revenue and expenses. Joint ventures arise where the investors have rights to the net assets of the arrangement; joint ventures are accounted for under the equity method. Proportional consolidation of joint ventures is no longer permitted.

    impact of the new standard on the groups joint arrangements

    The victoria Falls hotel Partnership - 50% joint control The Directors reviewed and assessed the classification of the Groups investment in The Victoria Falls Hotel Partnership in accordance

    with the requirements of IFRS 11, Joint Arrangements and concluded that the Groups investment in The Victoria Falls Hotel, which was classified as a joint venture under IAS 31, Interest in Joint Ventures and accounted for using the proportional consolidation method, is a joint operation under IFRS 11, therefore the Group continues to account for its share of assets, liabilities, income and expenses proportionately.

    west African Sun hotels Limited - significant influence The Group has 50% shareholding in West African Sun Hotels Limited (WASHL). However, following the adoption of IFRS 11, Joint

    Arrangements it was determined that the Group has significant influence over WASHL, and not joint control. The significant influence in the entity has been determined due to the following reasons;

    -the Group has representation of two Board members to the WASHL Board, from a total of five -the voting arrangement of WASHL does not require a unanimous agreement between the shareholders, hence no joint control; and -the chairman is an independent appointee.

    Based on the above, the Group now accounts for its investment in WASHL in terms of IAS 28 (revised), Investment in Associates. According to the revised standard, the key to the definition of an associate is significant influence, which is the power to participate in the financial and operating decisions of the investee but not control or joint control over those policies. Significant influence is presumed to exist where an entity holds more than 20% of the voting power.

    In terms of IAS 28 (revised), Investment in Associates, entities with significant influence over an investee are required to account for their investments in an associate using the equity method. Before the adoption of IFRS 11, Joint Arrangements, the Group used to account for WASHL using the proportional consolidation method. The new standard has been applied retrospectively, to show the impact of accounting for WASHL using the equity method in terms of IAS 28 (revised), Investment in Associates.

    The Group recognised its investment in the associate at the beginning of the earliest period presented (1 October 2012), as the total of the carrying amounts of the assets and liabilities previously proportionately consolidated by the Group. As at 30 September 2014, the investment was in a net liabilities position, hence a nil carrying amount in the books of the Group.

    4. PRiOR PERiOD ERROR

    Operating lease costs (rent) The Group incurred occupational rent amounting to US$1 875 767 during the prolonged fit out stage of the new hotel in Ghana. The

    occupational rent was paid in line with the lease agreement, though the hotel had not yet opened.The rent had been included as part of minimum lease payments which are capitalised and are armotised over the remaining lease period upon interpreting IAS 17, Leases. This treatment has now been considered incorrect. As such the occupational rent paid during the prolonged fit out stage should have been expensed when it was incurred.

    Other pre-opening expenses The Group incurred pre-opening expenses amounting to US$724 768 in lieu of the new hotel in Ghana during the year ended 30

    September 2013. As per Group policy, pre-opening expenses are capitalised/deferred and written off in the first year of operation of a hotel. This policy was found to be in contradiction with the International Financial Reporting Standards. The impact of correcting the error is shown below:

    All figures in US$

    Operating leasecosts (rent)

    US$

    Other pre-opening

    costsUS$

    TotalUS$

    Statement of financial positionAssetsDecrease in non-current receivables (1,636,029) - (1,636,029)Decrease in current receivables (90,891) (724,768) (815,659)Increase in deferred tax income assets 352,105 147,775 499,880

    Total decrease in assets (1,374,815) (576,993) (1,951,808)

    Statement of comprehensive incomeIncrease in operating expenses (1,875,767) (787,237) (2,663,004)Increase in income tax credit 352,105 147,775 499,880

    increase in loss for the year (1,523,662) (639,462) (2,163,124)

    5 gOiNg CONCERN The Groups EBITDA grew positively by 70% in the period under review, consolidating a discernible growth trend averaging 5% per

    annum since 2012. This attribute of resilience defied a generally receding operating environment. The EBITDA growth trend has demonstrated the Groups inherent value creation capacity. The Group repaid loans amounting to US$6.8 million resulting in a 46% decrease in the the net current liabilities position to US$5.75 million down from US$10.72 million reported last year. Looking ahead, the domestic market is envisaged to remain depressed, exerting further pressure on rates and margins, but we anticipate that this will be ameliorated by:

    aforecastedgrowthinforeignarrivals; growthinthecontributionoftherecentlyopenedhotelinGhana; furthereffortstoreducecostsofsalesandoperatingcosts;and furtherdebtrestructuringandreduction. Based on the aforementioned, the Directors have assessed the ability of the Group to continue operating as a going concern and are

    of the view that the preparation of these financial statements on a going concern basis is appropriate. The appropriateness of the going concern basis is premised on:

    thesteadyimprovementinoperatingperformancerecordedoverthelastthreeyears;atrendthatisexpectedto continue in the future; and

    theconsummationoftherecapitalisationanddebtreductioninitiatives,anticipatedbytheendofthenextfinancial year.

    The key recapitalisation and debt reduction initiatives being pursued are outlined below: (i) disposal of 16.54% Linked Units in Dawn Properties: the disposal is expected to raise US$5.8 million, which will be used to repay

    short-term loans. Part of the disposal was effected on the Zimbabwe Stock Exchange on 17 December 2014 with a total value of US$1 million. The rest of the disposal expected to be completed by 30 March 2015.

    (ii) disposal of fixed property: the disposal is expected to raise US$4 million, which will be used to repay part of the short-term loans. Negotiations on the ground show that the disposal is likely to go through before 30 September 2015.

    (iii) sale of time share weeks The Group has opted for a timeshare weeks resale by early maturing imminently expiring time share weeks that range between 3 and 6 years to expiry. The total proceeds from this disposal are expected to be at least US$2.9 million and will be used to reduce borrowings.

    (iv) cost reduction after achieving a significant saving of US$1.8 million in costs during the financial year ended 30 September 2014, the Group is targeting further savings through implementation of various cost cutting initiatives.

    6. BORROwiNgS

    All figures in US$ As at

    30 Sept 2014 As at

    30 Sept 2013

    Non-current:Foreign 3,524,875 4,207,553 Finance lease liability 35,139 - Local 3,182,780 3,885,514 Total non-current 6,742,794 8,093,067

    Current:Foreign loans 3,087,500 4,148,987 Bank overdrafts 1,261,632 2,068,288 Finance lease liability 138,494 - Local loans 6,118,324 8,010,631 Total current 10,605,950 14,227,906

    Total borrowings 17,348,744 22,320,973

    7. SEASONALiTy OF ThE BUSiNESS The first half of our financial year is relatively slower than the second half. This has been the trend for the past 4 years, with the first

    half contributing between 44% and 48% of the full year revenue. The second half dominates because it is the beginning of our international markets peak season as well as an increase in corporate and conferencing business.

    For the financial year under review, the first half contributed 44% to the Groups revenue, while the second half contributed

    56%.

    8. SEgmENT ANALySiS

    All figures in US$year Ended

    30 Sept 2014year Ended

    30 Sept 2013Revenue - Ghana 2,152,788 - Zimbabwe 54,563,357 55,967,643

    56,716,145 55,967,643

    Earnings before interest, tax, depreciation and amortizationBotswana 1,920 - Ghana (1,245,937) (2,687,574)South Africa and Mauritius 468,490 222,441 Zimbabwe 7,723,720 6,560,809

    6,948,193 4,095,676

    All figures in US$ Note

    year Ended30 Sept 2014

    Audited

    year Ended30 Sept 2013

    Restated

    Revenue 8 56,716,145 55,967,643 Cost of sales (15,899,794) (15,302,031)gross profit 40,816,351 40,665,612 Other income 111,526 - Operating expenses 16 (36,946,251) (38,783,357)Other expenses (733,965) (499,708)Operating profit 3,247,661 1,382,547 Financing costs - net 12 (3,534,180) (3,072,787)Finance income 12 3,952 5,723 Finance costs 12 (3,538,132) (3,078,510)Fair value adjustment and impairment of assets classified as held for sale (3,342,087) (7,627,895)Recycled from other comprehensive income 249,706 181,165 Share of profit of investments accounted for using the equity method 274,315 331,034 Loss before income tax 8 (3,104,585) (8,805,936)Income tax credit / (charge) 9 818,883 (23,537)

    Loss for the year (2,285,702) (8,829,473)

    Other comprehensive loss net of tax:items that may be subsequently reclassified to profit or lossForeign currency translation reserve (1,440,336) (30,093)Comprehensive income from associate recycled to profit and loss (249,706) (181,165)Total other comprehensive loss (1,690,042) (211,258)

    TOTAL COmPREhENSivE LOSS FOR ThE yEAR (3,975,744) (9,040,731)

    Loss attributable to:Owners of company (2,285,702) (8,829,473)

    Total comprehensive loss attributable to:Owners of company (3,975,744) (9,040,731)

    Earnings per share: centsBasic loss 10 (0.28) (1.07)Diluted loss 10 (0.27) (1.04)Headline earnings / (loss) 10 0.09 (0.16)Diluted earnings / (loss) 10 0.09 (0.16)

    All figures in US$Share

    capitalShare

    premiumTreasury

    shares

    Non-distributable

    reserve

    Equity settled share based

    payments reserve

    Foreign currency

    translation reserve

    Revaluationreserve

    Accumulatedlosses

    Total shareholders'

    equity

    Balance at 30 September 2012 as previously stated 8,239,409 24,056,421 - 5,888,531 - (946,582) 430,871 (14,788,708) 22,879,942 Effects of changes in accounting policy - - - - - (91,984) - 485,415 393,431 Effects of treasury shares adjustment 75,320 677,883 (753,203) - - - - - - Balance as at 30 September 2012, as restated 8,314,729 24,734,304 (753,203) 5,888,531 - (1,038,566) 430,871 (14,303,293) 23,273,373

    Comprehensive lossLoss for the year as previously stated - - - - - - - (6,568,454) (6,666,349)Effects of changes in accounting policy - - - - - - - (97,895) (97,895)Effects of correcting the prior period error (note 4) - - - - - - - (2,163,124) (2,163,124)Loss for the year as restated - - - - - - - (8,829,473) (8,829,473)

    Other comprehensive lossCurrency translation differences - - - - (30,093) - - (30,093)Recycled to profit and loss - - - - - (181,165) - (181,165)Total comprehensive loss for the year - - - - - (30,093) (181,165) - (211,258)

    Transactions with ownersValue of employee services - - - 20,171 - - - 20,171

    Balance as at 30 September 2013 as restated 8,314,729 24,734,304 (753,203) 5,888,531 20,171 (1,068,659) 249,706 (23,132,766) 14,252,813

    Balance as at 1 October 2013 8,314,729 24,734,304 (753,203) 5,888,531 20,171 (1,068,659) 249,706 (23,132,766) 14,252,813

    Comprehensive lossLoss for the year - - - - - - (2,285,702) (2,285,702)

    Other comprehensive lossCurrency translation differences - - - - (1,440,336) - - (1,440,336)Recycled to profit and loss - - - - - (249,706) - (249,706)Transfer to accumulated losses - - (4,614,610) - - - 4,614,610 - Total comprehensive loss for the year - - - (4,614,610) - (1,440,336) (249,706) 2,328,908 (3,975,744)

    Transaction with ownersProceeds from disposal of treasury shares - 205,713 - - - - - 205,713 Loss from disposal of treasury shares - 547,490 - - - - (547,490) - Value of employee services - - - 80,685 - - - 80,685 Total transactions with owners - - 753,203 - 80,685 - - (547,490) 286,398

    Balance as at 30 September 2014 8,314,729 24,734,304 - 1,273,921 100,856 (2,508,995) - (21,351,348) 10,563,467

    ASL

    1539