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Vivo Energy Mauritius Limited Annual Report 2015 Vivo Energy Mauritius Limited Annual Report 20152 1

Who we are 3Our Vision 4Our Values 5Chairman’s Message 6Managing Director’s Report 8Review of Operations 11 Aviation 11 Marine 11 LiquefiedPetroleumGas(LPG) 12 Retail 13 Commercial 14 Lubricants 15 Customer Service Centre 16 ProductSuppliesandDistribution 17 HumanResources 17 Corporate Social Responsibility 19 Health,Safety,SecurityandEnvironment 20HistoryofVivoEnergyinMauritius 23OurShareholders 25Directors’ Report 28Secretary’s Report 31CorporateGovernanceReport 32Statement of Compliance 64IndependentAuditor’sReport 65IncomeStatement 67StatementofComprehensiveIncome 67StatementofFinancialPosition 68StatementofChangesinEquity 69StatementofCashFlows 70NotestotheFinancialStatements 71

Contents


Whowe are

VivoEnergyisthecompanybehindtheShellbrandinAfricaandisjointlyownedbyVitol,HeliosInvestmentPartnersandShell.Thecompanyhasastrongandgrowingpresencein16countriesacrossAfrica.

Itsources,distributes,marketsandsuppliesShell’shigh-qualityfuelsandlubricantstoretailandcommercialcustomersacrossthecontinent.

VivoEnergywasestablishedon1stDecember2011todistributeandmarketShell-brandedfuelsandlubricants.VitolandHelioseachown40%ofVivoEnergy,withShellholdingtheremaining20%.ShellandVivoLubricantsis50%ownedbyShelland50%ownedbyVitolandHeliosInvestmentPartners.VivoEnergyoperatesinRetail,CommercialFuels,Marine,Aviation(inpartnershipwithVitolAviation),LiquefiedPetroleumGasandLubricantsinMauritius.TheShellbrandhasbeenpresentinMauritiussince1905,celebratingits110thanniversaryin2015.

VivoEnergyMauritiusLimited(VEML)employs126people,operates45retailstationsundertheShellbrandandhasaccessto34,500metrictonnesoffueland2,675metrictonnesofLPGstoragecapacity.

Astrongandgrowingpresencein 16 countries across Africa


Our Vision

Our Values

OurvisionistocreateAfrica’smostrespectedenergybusiness.

TocreateAfrica’smostrespectedenergybusinessisnotanendinitself.Itisthelogicalconsequenceofdoingthingstherightway,realisingthefullpotentialofourpeopleandourbusinesspartners,andcreatinganewbenchmarkforquality,excellence,safetyandresponsibilityinAfrica’sdownstreamenergymarketplace.

Weknowthatrespectisearnedandthatactionsspeaklouderthanwords.Westriveconstantlytobehaveethically,responsiblyandhonourablyineverythingwedo.Wetakecareofourpeople,ourcustomersandthelocalcommunitiesandtheenvironmentinwhichweoperate.

WemeetthehighestinternationalHealth,Safety,SecurityandEnvironmental(HSSE)standards.Wecontinuetoinvestinouroperations,buildingstrongerpartnershipsandimplementingworld-classsafetypractices.Wesetanexampleforotherstofollow.

Aboveall,wegrowourbusinessbyhiring,trainingandmotivatingthebestlocalpeople,sharingtherewardsofsuccessandinvestinginthecommunitiesinwhichweoperate.

Wearejudgedbyhowweact:ourreputationisupheldbyhowweputintopracticeourcorevaluesofhonesty,integrityandrespectforpeople.Thesevaluesunderpinalltheworkwedoandarethefoundationofourbusiness.Wealwaysupholdthem,inwhateversituationwefindourselvesin.Indeed,theyarecrucialtooursuccessandgrowthasacompany,andtoachievingourvision.

ThesecorevaluesareencapsulatedinourGeneralBusinessPrinciplesandCodeofConduct,whichoutlineclear,concreteanddetailedprinciplesandethicalactionsbywhichweshouldconductourselves,anddrivethebehaviourexpectedofeveryemployee,ineveryVivoEnergyoperation,atalltimes.

Weemployadiversegroupofpeopleandvaluethebenefitsthisbrings.Werespectthehumanrightsofouremployeesandstrivetoprovidethemwithsafeworkingconditions,promotethedevelopmentoftheirtalentsandgivethemchannelstoreportconcerns.

Wealsofirmlybelieveinthefundamentalimportanceoftrust,openness,teamwork,professionalismandprideinwhatwedo.

Creating Africa’s most respectedenergybusiness.


DearShareholders,

IampleasedtoreportthatVivoEnergyMauritiusLimited(VEML)performedwellin2015,anddeliveredasignificantincreaseinprofitoverthepreviousyear.

ThecompanyregisteredaprofitaftertaxofRs283millionin2015,comparedtoRs154millionin2014.TurnoverwasRs10.1billionfortheyear,downfromRs12.8billionin2014.

Throughvariouscampaignsandinitiativesweactivelydefendedourmarketposition,andweare highly appreciative of our customersandotherbusinesspartnerswhoconfirmedtheirconfidenceinVEMLasapreferredsupplierorstrategicpartner.Overtheyearwetookappropriatemeasures to secure our unchangedstrategicambitionofgrowing the business in Mauritius sustainably,andwewereabletocontinuetoexpandourmarketpresenceandproductportfolio;inresponsetotheneedsofourcustomers.

Theexternalenvironmentwasnotwithoutchallenges:AsignificantdeclineinthepriceofcrudeoilandcommoditiesandcurrencydepreciationagainsttheUSdollaraffectedourbusiness,

butourteamworkedhardtomitigatethisimpact.

In2015,wecelebrated110yearsoftheShellbrandinMauritius,asignificantmilestoneforanybusiness,andoneofwhichIamproud.

WetookallthenecessarystepstoprotectandenhanceourreputationforprovidinghighqualityfuelsandlubricantsacrossMauritius,andcontinuetoworktowardsourultimateaimofbecomingAfrica’smostrespectedenergycompany.

Health,Safety,SecurityandEnvironment(HSSE)remainedcentraltoeverythingwedoatVEMLandwedeliveredagoodHSSEperformancein2015.ThroughourSafetyLeadershipcampaignweensuredthataculture of safety is set at the top oftheorganisationanddriventhroughtoallourpeople.

Goodpeopleremainedessentialtooursuccess.Werecruitedandretainedthebesttalent,andcontinue to focus on their training anddevelopmentsothattheycangrowyourbusiness.

Movingforwards,2016willcontinuetobechallenging.Weakcommodityprices,astrongdollar,

andgrowingconcernsaroundsecurity are all challenges toourplan.

Butwiththedrive,dedicationandfocus that our employees have shownin2015,Ihavenodoubtin our ability to meet whatever wearefacedwithtocontinuetogrowanddelivervaluetoyou,ourshareholders.Continuedinvestmentandgrowingourbusinessremainsatoppriority.Additionallyweareplacinganincreasedfocusoncustomersthisyear – ensuring that all our activity isgearedtowardsthem.

TheBoardofDirectorsandIareconfidentthatourstrategywillcontinuetoallowustogrow.Along with our management team andemployeeswearecommittedto achieving the company’s ambitionsasamarketleaderinMauritius,andwillworktoensuresustainableprofitablegrowthforthecompany.

Iwouldliketoagainexpressmyappreciation to our Managing Director for his effective leadership,themanagementteamandallofouremployeesfortheirhardworkandeffort.IwouldalsoliketopaytributetomyfellowBoardDirectorsfortheircontinuingcommitmentand

engagement.AndIwouldalsoliketothankyou,ourshareholders,foryourtrustinourcompany.

Christian ChammasChairman

Chairman’sMessage


Iamdelightedtopresentthereportonourbusinessandoperationsfortheyear2015,whichwasagoodyear.

Ourstrategicobjectiveistoinvestfor the growth of our organisation torespondtocustomerneeds,whilealsogeneratingprofitablegrowthforourinvestorsandreturntoourshareholders.Meetingthisobjectivebecomesa tough challenge with the sharp fall in oil price on the internationalmarketcoupledwiththeslowdownincertainkeyeconomicsectorsofthecountry.

Tobecompetitiveandtomaintainourleadershipposition,webelieve we must innovate so that wecanmeetnewdemandsandgraspnewopportunities.Andthisiswhatwehavestrivedtoaccomplishin2015.

Business PerformanceInspiteofdifficultchallenges,wearepleasedtoreportagoodoverallperformance.Somebusinessesperformedwellwhileotherswerenegativelyimpacted.

Wemadesureefficiencywashighonouragendathroughouttheyearandthishasyieldedsatisfactoryresults.In2015,wehavebeenabletoavoidthestockexposureincurredin2014.Wehavestartedreapingthebenefits

ofourconvenienceshopsandquickservicerestaurantswhichopenedinourservicestations.On the international business, the increase in our JUHI shares hasallowedustoderivemorerevenueinAviation.

InvestmentWehavedeployedcapitalinmakingtheacquisitionofournewbarge,theGulfStar1,whichhasagreater capacity than our previous barge.WealsointroducedShellGasLite,thefirstlight-weightcylindersonthemarket.Wehaveinvestedintwonewservicestations,namelyatMared’AlbertandFlacqandupgradedanumberofsites.Wehavemadesubstantialinvestmentindevelopingourconvenienceretailshopsandbytheendof2015,wewereoperating 15 convenience shops inourservicestations.

CustomersAsmentionedinmyreportlastyear,welaunchedournewproducts,ShellGasLite,andFuelOil380cst,atthebeginningof2015.Bothprovedtobeverysuccessful.Nonetheless,wedidnotstopthere.InJune,weintroducedShellFuelSaveUnleadedinMauritius,fouryearsafter Shell FuelSave Diesel, Shell’s breakthroughfuelsdesignedtolastlongerandsoldatnoextracost.Wehavealsointroduceda

newplatformforourShellCardwithimprovedfeaturesforbettercontrolandmanagementoffleets.

2015markedthe110yearpresenceoftheShellbrandinMauritius.Inordertomarkthismilestone,welaunchedourSmartClubLoyaltyProgram,thefirstloyaltycardoperatedbyanoilcompanyinthecountry,torewardourloyalcustomers.Membersofthe club can accumulate points andredeemthemagainstgiftsallyearround,notwithstandingthefact that they also participate in at leastfourdrawsperannum,withstarprizes.

WepursuedexistingpartnershipswithFoodLoversandQuikFixofABCGroupanddevelopednewoneswithotherrenownedcompanies,namelySubwayandInnscor,inourefforttomakeourservicestationsone-stopshopsforcustomerconvenience.Ournew service station at Flacq saw theopeningofthefirstChickenInnquickservicerestaurantinthecountry.Wetakeprideinbeingthefirstcompany,notonlyin Mauritius but also in Africa, to open two Hearty outlets on Mare d’AlbertandPineviewservicestations.Heartyisournewlydevelopedin-housebrandofferingfreshlybakedproducts.We plan to further invest to

achieveourobjectiveofmakingcustomerexperienceunmatchedinourservicestations.

PeopleWebelieveitiscrucialtomakeemployeedevelopmentpartofourintegratedhumancapitalstrategy.Ouremployeesareourbiggestassetsandwesparenoeffortinattractingandretainingadiverse,motivatedandhighperformingemployeebase.In2015,VEMLrecruitedninenewemployees,oneyounggraduateundertheYouthEmploymentProgrammeandfiveinternsforshorttermassignments.

In2015,eightemployeeswerepromotedandappointedtonewroles.Wekeptinvestingintraininganddevelopmenttofurtherdevelopthecompetenciesofourpeople.Theaveragenumberoftrainingdaysperemployeewas4.5comparedto4.4in2014.20employeesfollowedthecareerdevelopmenttraining‘OwnYourGrowth’and17leaderswentthroughtheLEADprogrammemeanttodeveloptheirpersonal,teamandbusinessleadership.ThecompanyalsoenteredapartnershipwithDucereandthe University of Mauritius for an MBAProgrammeonInnovationandLeadershipandfiveemployees are currently following

theprogrammebenefitingfromeitherpartorfullscholarship.

Tomeettheevolvingneedsofourcustomers, our efforts will go into attractingandengagingthebesttalentwiththerightskills.

Community InvestmentWetakeprideinmakinginvestments in the communities wherewedobusiness.Ourpriority areas for community investmentremainedroadsafety,educationandenvironment.

Overandaboveensuringouremployeesandcontractorsaretrainedondefensivedriving,we believe we also have a responsibility to sensitise the communityonroadsafety.Ourtargetaudienceforroadsafetyawareness is young people, as they aretheadultsoftomorrow,andeducationstartsatanearlyage.

WeheldourannualRoadSafetyDay, in partnership with the MinistryofEducationandHumanResources, in all primary schools inMauritiusandRodriguesinMay2015.TheVivoEnergyRoadSafetyDay,whichsawtheenthusiastic participation of school children,hasbecomeaneventprimaryschoolslookforwardto.Tofurtherengageyoungpeopleonroadsafetymatters,

ManagingDirector’s

Report


wealsoorganisedapoetryslamcompetition.

Since2008,wehaveworkedincollaborationwiththeNGO,Junior Achievement Mascareignes tohelpdisadvantagedyouthbuilda brighter future for themselves throughmentorshipandskillsdevelopment.In2015,615additionalyoungpeoplehavebenefitedfromtheprogrammethankstooursupport.Wealsocontinuedtoinvestintheupgradeof the environment close to our office.Wehavealsoempoweredouremployeestotackleourkeycommunity issues by volunteering throughactivitiesorganisedbythecompany.

Heath, Safety, Security and EnvironmentWeperformedwellonourHealth,Safety,SecurityandEnvironment(HSSE)targets,maintaining our focus on our priorityareaswhichwereroadtransport safety, process safety andcontractorsafety.Thankstotheeffortofallstakeholdersinvolved,weclosed2015withzerorecordableincidents,zerorecordablespillsandreached1418dayswithoutLostTimeInjury.

Our commitment to achieving andmaintainingthehighestinternational Health, Safety, SecurityandEnvironment(HSSE)standardsisattheheartofour

businessandisakeydifferentiatorforVivoEnergyinAfrica.

BeingthebestinHSSEisnotanobjectivethatsitsapartfromouroverallambitions.Itisanintegralandessentialpartofourbusinessplan.

OutlookWewillcontinuetoexperiencechallengesin2016.Tomitigatetheimpactofcurrentandexpectedeconomicconditions,wewillsparenoefforttobeefficientandoptimiseouroperations.Wewillkeepbalancingtheinterestsofourstakeholders,includingshareholders,customers,employeesandthecommunitiesinwhichweliveandworktokeepVEMLthecompanyweareproudof.

WehavealongstandingreputationforourunmatchedShellproductsandexcellentcustomerservice.Wewillkeepleveragingtheworld-classqualityoftheShellbrand,forwhichweare the licensee in Mauritius, inprovidinginnovativeandhigh-benefitsolutionstoourcustomers.

Ilookforwardtoanotherprofitableyear2016.

Toclose,IwouldliketothanktheBoardofDirectorsfortheirsupportandguidancethroughouttheyear.Iamgratefulforthededicationandhardworkthatour

employeeshavedemonstratedtoVEML.Itistheircommitmentandfocusthathasenabledustodeliveronourplan.Mythanksalso go to our contractors for supportingourbusinessandto our customers for their loyalty.Iwouldliketothankmymanagement team members for theirsupportandcontribution.In2016,wewillmaintainhighstandardsineveryaspectofourbusiness, from safety to ethics, qualitytoenvironmentalandsocial sustainability, from service to diversityandinclusion.

Wewillworkhardtoliveuptothatpromise.

Pawan K JuwaheerManaging Director

AviationSupplying products and related services to the aviation industry.

TheAviationbusinesswasagainmainlyimpactedbythesharpdecreaseofJetA1prices.Pricesfellcontinuously,decreasing40%fromJanuarytoDecember2015,withthepeakdecreaseof37pointstakingplaceduringthesecondhalfoftheyear.Thisresultedinwindfalllossesonstocksanderosionofcontractualmargins.TheAviationbusinessperformedbelowplan,bothintermsofvolumesandmargins.Theindustryenvironmentalsoremainedchallengingwithlowmarginlevelsstillprevailingduringthetenderprocess.

Comparedto2014,industryvolumegrewby7%,withtheincreasingnumberofflightstothecountry.OurAviationbusinessispreparedtoadapttochallengesandseizeopportunitiesastheyariseinthemarket.

MarineProviding Marine Fuel Oil, Marine Gasoil and Shell Lubricants.

2015wasagoodyearfortheMarinebusiness.Thebusinessleveragedpreviousinitiativesrelatedtothepartialliberalisationoffuelimports,includingputting

anewbunkeringbargeintooperationandtheintroductionofMarineFuelOil380cst.Thisresultedinagoodbusinessperformance,despiteadownwardtrendonprices.Whilepricesdroppedby40%betweenJanuaryandDecember,thesharpestdecreaseof59%tookplaceduringthesecondhalfoftheyear.Port-Louiswasnotascompetitiveasitsdirectcompetingports(SingaporeandDurban),anddemandthereforeslowed,resultingin2015beingayearwithnegativeindustrygrowth.Despitetheseunfavorableconditions,wemanagedtomaintainourmargins contrary to previous yearsbyproperlymanagingstockandcapitalisingonourownfuelimportsattherighttime.

Withtheintroductionofanewbarge,GulfStar1,wedoubledourlogisticscapabilitiesatanchorage.Wealsoincreasedourstoragecapacities,bothforFuelOilandMarineGasoil.VEMLwantstocontributetothedevelopmentofPort-Louismaritimeactivitiesandislookingforwardtograspinggrowthopportunities.

Reviewof Operations


Liquefied Petroleum GasProviding LPG in various cylinder sizes and bulk for domestic, commercial and industrial applications.

LiquefiedPetroleumGas(LPG),beingacleanandconvenientsourceofenergy,isusedworldwidefornumerousbusinessapplicationsinindustryandtransportation, as well as for domesticuse.VEMLsuppliesShellGastocommercialsectorssuchastextiles,hotels,livestockbreeding,catering,restaurantsandindustries.Easytotransportandtostore,LPGhaslongbeenacompetitivesourceofenergyandfordomesticapplications, it is cheaper than electricity.

Inrecentyears,themarkethasbecome more competitive, althoughdespitethis,thecompanyhasmanagedtolimittheimpactonitsLPGbusiness,resultinginimprovedbusinessperformancefor2015,comparedto2014.

VEMLcontinuallystrivestodeliverbetter,saferandmorereliablewaystomeettheenergyneedsof customers, while guaranteeing acontinuousandregularsupplyofLPGtoourcustomers.Wehaveawidedistributionnetworkwhichconsistsofsome900resellers throughout Mauritius andRodrigues.Inaddition,thecompanyprovidesahomedeliveryserviceinselectedregionsthroughanetworkofresellers,andthroughourdistributor,GasTransportLimited,for12Kgcommercialand50Kgcylinders.

ShellGasissoldinavarietyofcylindersizesforvariousapplications:5kgand12kgfordomesticpurposes,50kgforbothdomesticandcommercialuse,12kgforcommercialuseandindustrialapplicationsand12/15kgforforkliftapplications.Ourproductrangeisbackedbyourexpertise,dedicatedaccountmanagersandrigoroussafetystandards.

Torespondtocustomers’expectationsandneeds,in2015,thecompanylaunchedShellGasLite,thefirstlightweightLPGcylindersfordomesticuseinMauritius.Madefromcompositematerials,itislighter,rust-freeandmoremanageablethanthetraditionalmetalcylindersonthemarket.Besidesbeing7kglighterthanmetalcylinders,ournewcylinderistranslucent,whichallows customers to see when the LPGisrunninglow.

RetailThe highest quality products and a world-class retail experience.

With the opening of two new servicestationsinMared’AlbertandFlacqin2015,VEMLoperatesawell-distributednetworkof45retailstationsundertheShellbrandinthecountry.Duringtheyear, a number of stations were upgraded.

ThecompanylaunchedShell

FuelSaveUnleaded,thelatestdifferentiatedproduct.ShellFuelSave Diesel has been available tocustomerssince2012.ThesebreakthroughproductshavebeendesignedbyShell,thepioneerindifferentiatedfuelsdevelopment,toprovideanupgradedoffertocustomers;andenabledrivinglongerdistanceswhileensuringbetterefficiencyandmoreengineprotection.

Our focus on continuous improvement ensures that our servicestationsareclean,efficientandwelcomingwithallofferingdifferentiatedShellfuels,ShelllubricantsandShellGas.WeofferShellAutogas,ShellGasLite,carwashandtyreservicefacilitiesonselectedsites.

In2015,thecompanylaunchedanimprovedversionoftheShellCard,ourconvenientandsecuredmeans of payment, offering better controlinfleetmanagement.Anumberofmarketingactivities

Todeliverbetter,saferandmorereliablewaystomeettheenergyneedsofcustomers...

Review of Operations Review of Operations


wereorganised,toleveragethebenefitsofShellFuelSave.WelaunchedtheSmartClubLoyaltyProgramwhichallowscustomerstoaccumulatepointsandredeemthepointsforrewardsallyearround.Ontheoccasionofthelaunch, three star prizes were won by loyal customers, namely allinclusivepackagesfortwotoexperiencetheFormulaOneraceinAbuDhabi,aEuropeanCruisefortwoandtravelfortwotowatchaPremierLeaguematchinLondon.

Inourcontinuedefforttoimproveour offer on retail stations, VEMLpartneredwithreputablecompanies to offer new services, withtheaimofmakingourservicestationsone-stopshops.Bytheendof2015,thecompanywas operating convenience shops on15sitesandaseriesofquickservicerestaurants(Subwayonthreesites,ChickenInnononesite,FoodLoversontwositesand“Hearty”,ourin-housebrand,

offeringfreshlybakedproductsontwosites).Withregardtooperationalexcellence,wecontinuedthe“MysteryMotoristProgram”tomonitorandensurequalityandenhance service to customersonsite.

2016lookspromisingforfurthergrowththroughnewoffersandthefurtherdevelopmentofourretailnetwork.

CommercialSupplying transport and industrial fuels, lubricants and greases to business-to-business customers.

VEMLhasmaintaineditspoleposition for the supply of fuels to business-to-businesscustomersthrough strong long term relationshipswhiledeliveringaspromised.Thecompanydeliversfuelstocustomersinthe transport, construction, manufacturing, power, agriculture, hotels,restaurantsandtextile

sectors.WithShell’sunmatchedportfolioofdifferentiatedfuels,thecompanykeptofferinginnovativeenergysolutionsthataddvalueto the businesses, enhancing the efficiencyoftheoperationsandreducingtheenvironmentalimpactofourcommercialcustomers.ThecompanydrawsuponShell’sexpertiseasagloballeaderinfuelsinnovationandR&D,andonits constant, continuing focus on further enhancing fuels technology anddevelopingmoreefficientandcleanerproducts.

DeliveringShell’sdifferentiatedproductstocustomers’high-performance machines offers manybenefits,includingimprovedengineperformanceandprotection,andreducedfuelconsumption.

VEML’shighHSSEstandardshavebeenkeyelementsinwinningcustomers’trustandaretestimonyofourprofessionalapproach.

Despitethis,2015wasachallengingyear.Thevolatileandincreasinglycompetitiveenvironmenthasledtosignificantpricepressure.2015wasayearwithnegativemarketgrowthcomparedto2014.Theslowdownin the construction sector also impactedthetransportsector.Asa result, the pressure on margins hasamplifiedasthenumberofnewprojectswerelimited.Nevertheless,thankstoourrelationship with our customers, we have been able to maintain a cost-effectiveposition.

LubricantsProviding a full range of lubricants for automotive, marine and industrial applications.

VEMLoffersthebestofShell’scomplete range of lubricants, greasesandservicestoretail,commercialandmarinecustomers, available from our

Tooffernewservices,withtheaimofmakingourservicestationsone-stopshops...



comprehensivenetworkofShellservice stations, spare parts shopsandfranchisedaswellasindependentworkshops.In the retail segment, our superior automotive lubricants arespecificallydesignedforcustomerswhoneedthebestformulationsfortheirvehicles.Bygivingourbusiness-to-businesspartnersaccesstoShell’sindustry-leadinglubricantstechnologyandourtechnicalexpertise,wehelp them to meet their most demandingbusinesschallenges,hence improving their business performance.ShellLubricantsremains at the forefront of the technologyandinnovationwithournewShellHelixwithPureplustechnology, a revolutionary process that converts natural gas intocrystal-clearbaseoil.

2015resultswerebelowplangiven a very challenging year in

somekeysegments.ConstructionactivitiesinMauritiushadanegative growth which severely impactedsalesoflubricants.2016seemsmorepromisingwithdevelopmentprojectsplannedtostartinthecomingmonths.Wearealsoexpectinggrowthintheconstructionsectorin2016.

Customer Service CentreA one-stop shop for our customers.

Throughourcallcenter,weprovidebasicservices,suchasordertakingfromretailandcommercial customers for fuels andlubricants,complaintshandling,invoicingandrespondingtoqueriesoncustomeraccounts.Ourservicesalsoincludedebtorfollow up, maintenance calls management,lubricantsandLiquefiedPetroleumGasdeliveryschedulingandtelesalesandtelemarketingsupport.

CallsarehandledbyourtrainedagentswhoactasbusinessandservicefocalpointsforHSSE,Commercial,Lubricants,LPG,AviationandMarine.Wefaceanever-growingdemandforservices,bothinternallyandexternally.

Besidesbeingtheonlypetroleum company operating such comprehensive customer service in the country, we are continuously revisiting our processesandstrivingtomaintainhigh performance through focusandemphasisonpeopledevelopmentandstaffmotivation.

Product Supplies and DistributionSupplies

VEMLcoordinatesthereplenishment programme on behalfoftheoilindustrywiththeStateTradingCorporation(STC)formogas,gasoilandLPG.

Some72,459metrictonnesofLPGand930,991metrictonnesofmogasandgasoilwereimportedin2015.LPGisreceivedinconsignmentsof2,000-3,000metrictonnesfromLPGtankerswhilewhiteandblackoilsarereceivedin60,000metrictonnetankers,combiningoilindustryandCentralElectricityBoardrequirements.

With partial liberalisation of bunkerfuelimports,whichtookplacein2014,VEMLcontinuedtoworkwithVitolTradingfortheimportofmarineproductsin2015.

TheShellGroupMaritimeAssuranceSystem(GMAS)forvettingtankersissystematicallyutilisedtoensuresuitabilityofallvesselsbeforeloading.Substandardvesselsarethereforeavoided,ensuringbetterprotectionforMauritianshores.

DistributionVEMLownsandoperatestwodepots,namelyRocheBoisandCauseway.RocheBoisismainlyusedforthestorageofwhiteoilsandincludesanLPGdepot

withasemi-automaticcylinderfillingplant,aswellaspackedlubricantsstores.Causewaydepotisessentiallyforthestorageanddistributionoffueloiltobothmarineandindustrialcustomers.VEMLalsooperatesthreeotherdepotsonbehalfoftheoilindustry,oneatFortWilliamforthe storage of fuel oil on behalf of theCentralElectricityBoard,thesecondoneinRodriguesIsland,andthethird,ajointventureLPGstorage,ESCOLinwhichVEMLowns50%equity.

Thecompanyholds25%oftheshares of Mer Rouge Oil Storage TerminalCompanyLimited(MOST),aJointVenturesetupwiththeoilcompaniestobuildandoperateanadditional25,000metric tonnes motor gasoline depotinMerRouge.

Distribution to retail outlets, industrialcustomersandtheairportiseffectedbybulkdeliveryvehiclesforwhiteoilsandblackoils.AnotherfleetofvehiclesdistributesLPGcylindersacrosstheislandtoretailers,whilebulkLPGisdeliveredthroughspecialisedvehicles.Deliveriestomarinecustomersisconductedeitherthroughbunkeringbargeorthroughpipelinesatquays.

Human ResourcesOur people, our biggest assets.

AtVivoEnergy,wearecommittedtothecontinualdevelopmentofourpeople.Weunderstandthat,



as a business, we can only be as goodastheindividualsweemploy,andforthatreasonweactivelyseekoutpeoplewiththerarecombinationofskill,experience,responsibility,commitmentandambitionthatwillhelpmakeVEMLarespectedandsuccessfulcompanyandanemployerofchoice.Thecompanyisveryculturallydiverse,whichhelpstobringdifferentperspectives.

In2015,VEMLrecruitedninenewemployees,Inaddition,oneyounggraduatejoinedundertheYouthEmploymentProgramme.High

performingleaderssupportallnewgraduaterecruitsthroughcoachingandhelpthemgrowthroughamentoringprogramme.Thecompanyalsohiredfiveinterns for short term assignments andhelpedthemdeveloptheskillstheyneedandacquireon-the-jobexperience.

Thecompanyiscommittedtodevelopingandpromotinglocaltalentwhereverpossible.Employeeswhowanttomakeadifferenceandhavetheenergy,professionalismanddrivetoachievemoreandmotivate

othersaregivenlearningandgrowthopportunities.In2015,eightemployeeswerepromotedandappointedtonewroles.Theaveragenumberoftrainingdaysperemployeewas4.5comparedto4.4in2014.20employeesfollowedthecareerdevelopmenttraining‘OwnYourGrowth’and17leaderswentthroughtheLEADprogramme,meanttodeveloptheirpersonal,teamandbusinessleadership.

ThecompanyenteredapartnershipwithDucereandthe University of Mauritius foranMBAProgrammeonInnovationandLeadership.Fiveof our employees are currently followingtheprogrammeandhaveobtainedeitherpartorfullscholarship.

AteambuildingeventforallemployeeswasorganisedinJune.

We have in place a competitive rewardandrecognitionprogramme for the contribution ourpeoplemakethroughperformance-relatedpayandbonuses.Excellentperformanceisrecognisedatquarterlystaffcommunicationsdaysand10employeeswererewardedwithmonetary special recognition awardsin2014.Atthepan-Africangrouplevel,VEMLwontheprestigiousVivoAward2015intheHSSEcategory,withMauritiuswinningaVivoAwardforthefourthyearinarow.VivoAwardsrepresentanopportunityforVivoEnergyemployeesto

sharebestpracticeandcelebrateoutstandingperformance.

Corporate Social Responsibility

AtVivoEnergy,wewanttomakearealandlastingdifferencetothe communities in which we operate.Wehavechosentofocusonthreekeyareasofcommunityinvestment:roadsafety,educationandtheenvironment.

Our community investment programmes matter to us because weemploylocalpeopleandservelocalbusinessesandindividuals.We want to create sustainable socialandeconomicbenefitsforthesecommunitiesandengagewith them to earn their respect andtrust.

More about our local community projectsisavailableonpage52.



Health, Safety, Security and EnvironmentSafety is not about what it costs, but what it saves.

Our commitment to achieving andmaintainingthehighestinternational Health, Safety, SecurityandtheEnvironment(HSSE)standardsisattheheartofourbusinessandisakeydifferentiatorforVivoEnergyinAfrica.BeingthebestinHSSEisnotanobjectivethatsitsapartfromouroverallambitions.Itisanintegralandessentialpartofourbusinessplan.

Ourgoalistoleadbyexampleandsetanewbenchmarkforworld-classHSSEpoliciesand

practices.Thiscommitmentisfundamental,enduringandnon-negotiable.Ourperformancetodatehasbeenverypositive,withthekeymetricsshowingthatwehavemetorexceededourtoughgoalsinmanyvitalareas.

Weknowthatourretail,commercialandmarinecustomersrecogniseandvaluethestandardswesetourselvesinHSSEandsocialperformance.Wealsoknowthatthemaintenanceandadvancementofthesestandardswillplayakeyroleinwinningnewcustomers,buildingloyalty,engaging communities, motivating ouremployeesandgrowingourbusiness.

HSSE performance 2013-2015

2013 2014 2015Fatality zero zero zeroTotalRecordableCases zero zero zeroTotalRecordableOccupationalIllness Frequency zero zero zeroExposureHours(‘000) 589 475 783LostTimeInjury zero zero zeroSpills zero zero zeroKilometresdriven(‘000s) 2,141 1,902 1,614

2015wastheninthyearthecompanycelebrateditsannualsafetyday.Safetydayisasignificantmilestone in the company’s journeytobuildastrongersafetycultureinourpursuitofGoalZero of no harm to people or the environment.The2015themefortheeventwas‘‘SafetyLeadershipStartsHere.”

Ourfocusareasfor2015were:•TransportSafety •Road -Heavygoodsvehicles:

Continuewiththeroadsafetycomplianceprogramme.

-Lightvehicles(Passengercars,busesandlightgoodsvehicles):Developandrolloutvehiclestandardsappropriate

fordifferentusesandterrain.Enhancecompliancewithvehicle,driverandjourneymanagementrequirements.

•Marine - Enhanceoperational

excellenceinShip-ShoreoperationsandMarineOilSpillResponsepreparedness.

•ProcessSafety - Improvethenumberand

qualityofPotentialIncidentsreportedandtakeproactivemeasurestoavoidincidents.

- ImplementselectedHeartsandMindsmodulesandmeasure progress on the HSSEcultureladder.

- Ensurethatahighqualitycrisis management response plan is in place

- Ensureimplementationofstandardsforhighsecurityrisksitesbasedonvulnerabilitytorobberyassessments.

- Developandrollouttoolsandproceduresforensuringproductqualityatretailsites.UpgradethecompetencesofproductqualityfocalpointsandQualityMarshalls.

•ContractorSafety •Continuetoenhancethe

riskmanagementcapabilitiesof facility management andprojectmanagementcontractors via the green bandingprocess.

•EnforcecompliancewithstandardsandupgradecompetencesofcontractedpersonnelperformingHSSEcriticalactivities.

• Monitor compliance with contractor safety requirements using the contractholdermonitoringtool.

Weareequallydiligentinreportingincidentsandidentifyingpotentialincidents.Itispartofacompany-wideculturethatextendstoemployees,contractorsandpartnersalike.Forouremployees,adherencetoHSSEpolicyandpracticeisaperformancetargetlinkeddirectlytotheirpay.



VivoEnergyisthecompanybehindtheShellbrandinAfricaandisjointlyownedbyVitol,HeliosInvestmentPartnersandShell.Thecompanyhasastrongandgrowingpresencein16countriesacrossAfrica.

Itsources,distributes,marketsandsuppliesShell’shigh-qualityfuelsandlubricantstoretailandcommercial customers across the continent.

VivoEnergywasestablishedon1stDecember2011todistributeandmarketShell-brandedfuelsandlubricants.VitolandHelioseachown40%ofVivoEnergy,withShellholdingtheremaining20%.ShellandVivoLubricantsis50%ownedbyShelland50%ownedbyVitolandHeliosInvestmentPartners.VivoEnergyoperatesinRetail, Commercial Fuels, Marine, Aviation(inpartnershipwithVitolAviation),LiquefiedPetroleumGasandLubricantsinMauritius.TheShellbrandhasbeenpresentinMauritiussince1905,celebratingits110thanniversaryin2015.

VEMLemploys126people,operates45retailstationsundertheShellbrandandhasaccessto34,500metrictonnesoffueland2,675metrictonnesofLPGstoragecapacity.

TheShellCompanyofEastAfricaLimitedstarteditsmarketingoperationsinMauritiusin1905through its managing agents, BlythBrothersandCompanyLimited.Assuch,ShellwasthefirstinternationaloilcompanytosetupbusinessontheislandanditsclosepartnershipwithBlythhas been the cornerstone of a successfuldevelopment.

Most of the sites of current servicestations,depotandcustomerportfoliowereacquiredduringthistime.

As part of a regional corporate reorganisationinthelate1950s,theShellCompanyofEastAfricawasreplacedbytheShellCompanyoftheIslandsLimited,abranchofacompanyincorporatedintheUnitedKingdom.Aftertheirreversibleturmoil on the international oil sceneintheearly1970sandrecognisingtheneedforoilcompanies to have their own identityanddirectdialoguewithGovernment,ShellandIrelandBlythLimited,whowasthentheoldestShellagentintheworld,negotiatedthetermsoftheagencyagreement.In1976,ShelltookoveritsownbusinessmanagementinMauritius,directlypromoting its activities, engaging itsownstaffandopeningitsownoffices.

Historyof VivoEnergy

in Mauritius

VivoEnergy,a Shell licensee in 16 African markets,wasestablishedon1st December 2011todistributeandmarketShell-brandedfuelsandlubricants.


AsaresultofadecisionmadebytheShellandBPgroupstodeconsolidatetheirjointbusinessinterestsinAfricain1982,BPOceanIslandsLimited’sactivitiesinMauritiusweretakenoverbyShell to become Shell Ocean IslandsLimited.BothTheShellCompanyoftheIslandsLimitedandShellOceanIslandsLimitedweregiventhestatusofaPublicLimitedCompany(plc)asaresultofachangeinBritishCompanyLaw.On1January1991,thebusinesses of the local branch of bothTheShellCompanyoftheIslandsplcandShellOceanIslandsplcweretransferredtoalocallyincorporatedcompany,ShellMauritiusLimited,inexchangeforsharesinthelatter.Thischangein

corporatestructureunderlinesShell’sconfidenceinthefutureofMauritius.Inaddition,thenewlyincorporatedcompanywasfloatedontheMauritianStockExchangeandtheMauritianpubliccurrentlyowns22.85%ofitsshares.

Duringits110-yearpresenceinMauritius, the company has built up a comprehensive business networkintheenergyscene,backedupbystronginfrastructuralinvestments,goodtechnicalknow-howandprofessionalism.VEMLaccounts for nearly half of the importedenergydemandoftheislandandispresentinallsectorsofthisbusinessactivity.

About VitolVitol has 40% shareholding in Vivo Energy.

TheVitolGroupisanenergyandcommoditiescompany.FoundedinRotterdamin1966,Vitolistodayoneoftheworld’slargestindependentenergytradingcompaniesandthecompanyhasalmost40officesworldwide– with its largest operations in Geneva,Houston,LondonandSingapore.Thegroup’sturnoverin2014was$270billion.

Physicaltrading,logisticsanddistributionareatthecoreofthebusiness,butarecomplementedbyrefining,shipping,terminals,explorationandproduction,powergeneration,miningandretailbusinesses.

Withmorethan200shipsatseaatanygiventimeandover5millionbarrelsofcrudeoilandproductstradedeveryday,Vitolhas360ºcapabilityrightalong the supply chain – from thewell-headtotheservicestation.Entrepreneurial,responsiveandagile,Vitolhasabreadthofresourcesandadegreeofliquiditythat enables the business to seize opportunitiesquicklyandmakethingshappen.Vitol’sincreasingexpansionintowholesaleandretailmarketingmakesittheperfectpartnerforVivoEnergy.Thecompany’sownershipofVitolAviationand50%stakeinVTTI–oneoftheworld’sfastestgrowingstorageandterminalsbusinesses–addsrealstrengthandflexibilitytotheVivoEnergybusiness.

Vitolisownedbyasignificantproportion of its employees, providingadiverseandstableshareholderbasewhichgivesthecompanyalong-termoutlookandaconsideredapproachtorisk.

FurtherdetailsonVitolareavailableon:www.vitol.com

OurShareholders


About Helios Investment PartnersHelios Investment Partners has 40% shareholding in Vivo Energy.

HeliosInvestmentPartnersisanAfrica-focusedprivateinvestmentfirm.Heliosoperatesafamilyoffundsandtheirrelatedco-investment entities, aggregating morethan$3billionincapitalcommitments, pursuing a full range ofinvestmenttypes,includingbusiness formations, growth equity investments,structuredinvestmentsinlistedentitiesandlargescaleleveragedacquisitionsacrossAfrica.

Establishedin2004,HeliosisoneofthelargestinvestmentfirmsfocusingonAfricaandisamongthefewindependentpan-AfricanprivateequityinvestmentfirmstobefoundedandmanagedbyAfricans.Theinvestmentexperienceof the members of the Helios team hasbeengainedfromdecadesofcollectiveexperienceinprivateequity,insomeoftheworld’smostcompetitiveanddemandingmarkets,withinleadingfirms.

TheHeliosteamhassignificantexperienceinprivateequityinvestingacrossabroadrangeofindustriesandinvestmenttypes-leveragedbuyouts,recapitalisations,jointventures,seed-stageventure

capital,restructurings,andstrategicpublicequityinvestments.Equallyimportantly, members of the team possesssignificantoperationalexpertisederivedfromtheircollective involvement in the conceptualisation,creationanddevelopmentofseveralnewbusinessesinvariousmarketsandfromhavingplayedcriticaloperatingrolesincorporateturnaroundsituations.

FurtherdetailsonHeliosInvestmentPartnerscanbefoundat:www.heliosinvestment.com

About Royal Dutch ShellShell has 20% shareholding in Vivo Energy.

RoyalDutchShellwasformedin1907,althoughthehistoryofShelldatesbacktotheearly19thcentury.TheparentcompanyoftheShellgroup is Royal Dutch Shell plc, whichisincorporatedinEnglandandWales.TheShellnameisoneoftheworld’smostrecognisedandrespected.

ThestrategyofShellistostrengthenitspositionasaleaderintheoilandgasindustry,whilehelping to meet global energy demandinaresponsibleway.Safetyandenvironmentalandsocial

responsibility are at the heart of the activitiesofthecompany.Withoperationsinover70countriesandnearly90,000employeesworldwide,Shellhasexpertise,experienceandresourcesthat cover the full spectrum – from upstreamtodownstream.TheShellbrandisinVivoEnergy’scarewhereverweoperateinAfrica.WeunderstandandvaluethebrandequityassociatedwithShell’sfuelsandlubricants.Equally,weknowthat Shell’s reputation for quality andtechnologicalinnovationisreflectedinproductsthatcombineperformance,efficiencyandreliabilitytooptimumeffect.Buildingupon Shell’s achievements in the Africandownstreammarket,ourmissionistobringtheseexceptionalproductstothewidestpossiblecustomerbase,addingvaluewhereverwecan.

Forfurtherinformation,visit:www.shell.com

FinancialStatements


ThedirectorspresenttheirannualreportandtheauditedfinancialstatementsofVivoEnergyMauritiusLimited(the“Company”)fortheyearended31December2015.

PRINCIPAL ACTIVITIESTheCompany’sprincipalactivityisthemarketinganddistributionofpetroleumproducts.Itsjointventure,EnergyStorageCompanyLimited,isinvolvedintheprovisionofLPGterminalusagefacilities.Theotherjointventure,MerRougeOilStorageTerminalCo.Ltd,isnotyetoperational.

RESULTS AND DIVIDENDSTheCompany’sprofitfortheyearisRs 282,627,000(2014Rs154,331,000).ThefinancialstatementsoftheCompanyfortheyearended31December2015aresetoutonpages67to109.Theauditor’sreportonthesefinancialstatementsisonpages65and66.TheCompanydeclaredandpaidthefollowingdividendsin2014and2015:

Company law requires the directorstopreparefinancialstatementsforeachfinancialyearwhichpresentfairlythefinancialposition,financialperformanceandcashflowsoftheCompany.Inpreparingthosefinancialstatements,thedirectorsarerequiredto:•selectsuitableaccountingpoliciesandthenapplythemconsistently;

•makejudgementsandestimatesthatarereasonableandprudent;

•statewhetherInternationalFinancialReportingStandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and

•preparethefinancialstatementson the going concern basis unless it is inappropriate to presume that the Company will continue in business.

Thedirectorsconfirmthattheyhavecompliedwiththeaboverequirements in preparing the financialstatements.

ThedirectorsareresponsibleforkeepingproperaccountingrecordswhichdisclosewithreasonableaccuracyatanytimethefinancialpositionoftheCompanyandtoenable them to ensure that the financialstatementscomplywiththe Mauritian Companies Act 2001.TheyarealsoresponsibleforsafeguardingtheassetsoftheCompanyandhencefortakingreasonable steps for the prevention anddetectionoffraudandotherirregularities.

DIRECTORSThedirectorsoftheCompanysince01January2015andatthedateofthisreportare:MrPawanKJuwaheerMrPatrickCrightonMrRogerKFLeungShinCheungMr Christian ChammasMrTimTaylorMrJohanDepraetere(alternatetoChristianChammas)MrBernardLeGoff(appointedon03November2014)

CONTRACTS OF SIGNIFICANCETheCompanyenteredintothefollowingcontractswithrelatedparties:(a)witheffectfrom01December2011,alicenceagreementforthebrandingofretailautomotivefuelsitesandotherassetswithShellBrandsInternationalAG;and(b)witheffectfrom01January2014,acontractfortheprovisionofserviceswithVivoEnergyAfricaServicesLtd.

MAJOR SHAREHOLDERAt31December2015,VivoEnergyMauritiusHoldingsBVholdsdirectly77.15%oftheordinarysharecapitaloftheCompany.Nootherpersonholds5%ormoreoftheordinarysharecapitaloftheCompany.

SEGMENTAL ANALYSISA business segment analysis of salesandresultsisgiveninNote5tothefinancialstatements.

Directors’Report

Dividend per share 2015 2014 Rs Rs

Declaredon:14May2014(2013finaldividend) - 2.8014August2014(2014interimdividend) - 1.4012November2014(2014interimdividend) - 0.8015May2015(2015interimdividend) 0.9014August2015(2015interimdividend) 1.0013November2015(2015interimdividend) 1.00 2.90 5.00

Fortheyearended31December2015,theCompanymadeaprofitofRs 9.64(2014Rs5.26)pershareanddeclaredaninterimdividendof Rs 2.90(2014-Rs2.20)pershareofwhichRs 2.90(2014–Rs2.20)waspaidduringtheyear.

Statement of Directors’responsibilities In respect of the Financial Statements


SERVICE CONTRACTSMessrsPatrickCrightonandPawanKJuwaheerhaveservicecontractswithoutanexpirydate.Servicecontractsofotherdirectorsare terminable with a 3 months’ noticeperiodbyeitherparty.

DIRECTORS’ INTERESTSThedirectorshavenointerestsintheordinarysharecapitaloftheCompany,eitherdirectlyorindirectly.

THREE YEAR SUMMARYAthreeyearfinancialsummaryissetoutinNote29tothefinancialstatements.

DONATIONSDuring the year, the Company madedonationsofRs 59,669 (2014–Rs10,946).

AUDITORThefeeschargedbytheauditor,PricewaterhouseCoopers,forauditandotherserviceswere:

Theauditrelatedservicesconsistof(i)quarterlyreviewofpublishedfinancialstatements,(ii)reportingtothegroupauditorsand(iii)issuingvolumecertificates.PricewaterhouseCoopershasindicateditswillingnesstocontinueinofficeandwillbeautomaticallyreappointedattheAnnualMeeting.

ApprovedbytheBoardofdirectorson24March2016andsignedonitsbehalfby: )DIRECTORS ) )

2015 2014 Rs’000 Rs’000

Statutoryaudit 1,800 1,750Auditrelatedservices:- Quarterlyreviews 581 558 ReportingtoGroupAuditors 241 234 Issuingvolumecertificates 60 58

Directors’ Report Directors’ Report

WecertifythatwehavefiledwiththeRegistrarofCompaniesallsuchreturnsasarerequiredoftheCompanyundertheCompaniesAct2001.

ExecutiveServicesLimitedPerAhManWongTooYanACISCORPORATESECRETARY 24March2016

Secretary’s ReporttotheMembersofVivoEnergyMauritiusLimitedUnderSection166(D)OfTheCompaniesAct2001


Directors’ Report Corporate Governance Report

MAURITIUS CODE OF CORPORATE GOVERNANCE COMPLIANCE

ThedisclosurescontainedinthisreportareintendedtoprovidethereaderwithadescriptionofVivoEnergyMauritiusLimitedcorporategovernancepoliciesandpractices.Thedirectorsfirmlybelieveinandsupporthighstandardsofcorporategovernance,whicharecriticaltoourbusinessintegrity.TheBoardconfirmscompliancetotheMauritiusCodeofCorporateGovernance.

HOLDING STRUCTURE

80%HV Investments BV

(Netherlands)

77.15%Vivo Energy Mauritius

Holding BV (Netherlands)

22.85%Local Shareholders

Vivo EnergyMauritius Limited

20%Shell Overseas Investments

BV (Netherlands)

TheBoardofdirectorsofVivoEnergyMauritiusLimitedremainsstringentwhenitcomestoupholdingthehigheststandardsofintegrityandtransparencyintheirgovernanceoftheCompany.Theimportanceandthevalueofabalancedinterplaybetweendirectors,managementandshareholderswithintheCompanyhaslongbeenamajorprinciplegoverningtheconductofVivoEnergyMauritiusLimited.

ABoardofdirectorsconsistingofsixdirectorsmanagesVivoEnergyMauritiusLimited.Directorsareappointedattheannualmeetingofshareholders.Theyholdofficeuntiltheyretireorsubmittheirresignation,unlessremovedearlierfromofficebytheannualmeetingofshareholders.

Theboarddelegatestheday-to-dayrunningoftheCompanytotheManagingDirector.TheboarddelegatesoperationalissuestothemanagementteamandisdirectlyaccountabletotheshareholdersfortheperformanceoftheCompany.

DuringtheyearendedDecember31,2015,fourboardmeetingswereheld.

TheofficesofChairmanandManagingDirectorwereseparatedonNovember17,2003inordertoalignboardgovernancewiththeMauritiusCodeofCorporateGovernance.ANon-executiveDirectoroccupiestheOfficeofChairmanandanExecutiveDirectoroccupiestheofficeofChiefExecutive.TheChairmanandManagingDirectorensurethatthemembersoftheboardreceiveaccurate,timelyandclearinformation.

Boardof Directors

CorporateGovernanceReport

100%Vivo Energy Holding BV

(Netherlands)


Corporate Governance Report Corporate Governance Report

Mr Christian Chammas(aged61)Chairman and Non-Executive Director

ChristianChammas,joinedVivoEnergy,aShelllicenseein16 African countries, as Chief ExecutiveOfficeron01January2012.

Mr.Chammashasextensiveexperienceintheenergysector.PriortojoiningVivoEnergy,hewasatTotalfor31yearswhereheheldseveralpositionsinCentralAmerica,theCaribbeanandIndia.However, it is in Africa where mostofhiscareerhasdeveloped.Asanengineer,heworkedonhisfirstprojectinNigeria.HelaterservedasChiefExecutiveOfficerforTotalGroupofCompaniesinCameroonandKenya.Inhislast role, Mr Chammas was the ExecutiveVicePresidentfortheMiddleEastandNorthAfricadivisionofTotal’srefiningandmarketingdivision.

MrChammasisbasedinLondonbutspendsthemajorityofhistime with employees, customers andotherkeystakeholdersintheVivoEnergybusinessesacrossAfrica.

Mr Pawan K Juwaheer(aged52)Managing Director

PawanJuwaheerwasappointedManagingDirectorofVEMLinJanuary2012.Mr.Juwaheerstudiedmechanical engineering at the University of Manchester Institute ofScienceandTechnology,UK.HejoinedShellMauritiusin1986andhasovertheyearsoccupieddifferentpositionsacrossthebusinessinMauritius,TunisiaandKenya,beforebeingappointedCountry Chairman of the companyin2006.

Mr.JuwaheerisaformerChairmanof the Mauritius Chamber ofCommerceandIndustry.He is also a member of the NationalCorporateGovernanceCommittee.

Directorship in other companies• VivoEnergyIndianOceanHoldings

• EnergyStorageCompanyLimited

• MerRougeOilStorageTerminalCompanyLimited

• MauritiusCargoCommunityServicesLimited

• BarclaysBankMauritiusLimited

Mr Bernard Le Goff(aged54)Non-Executive Director

AgraduatefromHECParis,BernardLeGoffspent24yearsinTotal,ofwhich17yearsinAfrica.Starting with various positions intheFinancearea,hemovedto the general management of downstreamactivities(10years),asManagingDirectorofTotalsubsidiariesinFrenchGuinea,ZambiaandTanzania,beforetakingover the position of Regional VicePresidentforEasternandCentralEuropeofAS24,theTotalGroupsubsidiarysupplyingfueltoEuropeanhaulagecontractors;hewasinchargeof20countries.

In2009,hejoinedGalanawhere he was in charge of all SouthernandEasternAfricadownstreambusiness,basedinMaputo,Mozambique.MrLeGoffjoinedORYXinFebruary2010asManagingDirectorofORYXSouthAfrica,basedinJohannesburg, South Africa, in chargeofallSouthernandEasternAfricadownstreambusiness.

MrLeGoffjoinedVivoEnergyinAugust2012,asRegionalVicePresidentforWestAfrica,BotswanaandNamibia,basedinAbidjan,Côted’Ivoire.InSeptember,hemovedtoNairobi,Kenya,wherehetookoverthepositionofRegionalVicePresidentforEastandSouthernAfrica,alsoinchargeofIndianOceanIslands.HeisamemberofVivoEnergyGroupManagementTeamandofVivoEnergyExecutiveCommittee.

Mr Patrick Crighton(aged56)Executive Director and Finance Manager

Fellow of the Association of CharteredCertifiedAccountants,PatrickCrightonjoinedShellMauritiusinJanuary1987.HehassinceoccupiedthepositionsofManagement Accountant, Legal andTaxAccountant,TreasuryandCorporateAccountantandCreditManagerbeforebeingappointedFinanceManagerin2001.Mr.CrightonistheholderofaMastersinBusinessAdministrationfromNapierUniversity.HeisaboardmembersinceJanuary2005.

Profileof Directors


Tim Taylor(aged 69)Independent and Non-Executive Director TimTaylorholdsaBA(Hons)inIndustrialEconomicsfromNottingham University in the UnitedKingdom.HeworkedinUnitedKingdomuntil1972whenhereturnedtoMauritiusandjoinedRogers,aleadingMauritianCommercialandServicesGroup.HebecameChiefExecutiveofRogersin1999andretiredinDecember2006.HebecameChairman(non-executive)ofRogersin2007,retiringinOctober2012.HeiscurrentlyChairman(non-executive)ofCimFinancialServicesLtdandScott&CoLtd.MrTayloristheHonoraryConsulofNorwayinMauritiusandapastChairman of the Mauritius Chamber ofCommerceandIndustry.Heis a former Chairman of the National Committee on Corporate Governance.Hehasalwayshadaninterestinenvironmentalandconservationissues.Hehasbeena member of the Council of the MauritianWildlifeFoundationsince2006andPresidentsince2009. Directorshipinotherlistedcompanies• CimFinancialServices (non-executiveChairman)

Mr Roger Leung(aged 69)Independent and Non-Executive Director

Member of the Association of the CharteredInstituteofbankersinUKandafellowmemberoftheMauritius Institute of Directors, RogerLeunghasbeenappointedaDirectorinJune2006.HeretiredfromBarclaysBankinSeptember2005asRegionalCorporateDirector.HehasbeentrusteeoftheBarclaysEmployeesPensionFundandaDirectoroftheBarclaysLeasingCompany(Mauritius)Limited.HealsoworksasaConsultant in business restructuring andinperformanceoptimisation.

Directorship in other companies• Mauritius Development InvestmentTrust

• InvestmentProfessionalsFundLtd(IPROFundLtd)

• DolbergAssetFinanceLimited• DolbergFinancialHoldingLtd• BankOneLimited


Directors’ emoluments

2014 2013

0–MUR200,000 2 2BetweenMUR200,000toMUR1m 2 2BetweenMUR1mtoMUR3m 0 0Above MUR 3 m 2 2

Duringtheyearended31December2015,executivedirectorsreceivedan aggregate amount of MUR 21,001,455(2014–MUR20,099,745)asremunerationandbenefitsfromtheCompany.Thenon-executivedirectorsreceivedanaggregateamountofMUR 504,000(2014-MUR523,742)asremunerationandbenefitsfromtheCompanyduringthesameperiod.During2012,thecorporategovernancecommitteemettoconsiderwhethertheCompanywoulddisclosedirectors’remunerationonanindividualbasisgoingforward.Eventuallyitwasdecidedtocontinuedisclosingsalariesbybandstoprotectpersonalprivacyofindividuals,whichisalsoinlinewithcurrentmarketpractice.


Corporate Governance Report

Profileof Management

Team

Nancy YoungHuman Resources Manager

NancyYoungistheholderofaMaster’sdegreeinPsychologywithspecialisationinIndustrialPsychologyfromtheUniversityofBordeauxinFrance.ShejoinedShellMauritiusin1990asAssistantPersonnelandServicesManagerhavingworkedonamajorprojectwithaconsultancyfirm,CoreServicesLimited.ShecurrentlyholdsthepositionofHumanResourcesManager.

Krishnen VencadachellumRetail Manager

HolderofadegreeinMechanicalEngineeringfromtheNITAllahabad,IndiaandaMastersdegreeinBusinessAdministrationfromtheUniversityofMauritius,KrishnenVencadachellumjoinedShellMauritiusin2004asRetailEngineerandPropertyManager.In2009,hewasappointedOperationsExcellenceCoordinator,NetworkPlannerforEastandSouthEastAfricain2011,beforebecomingExecutiveAssistanttotheVPIndianOceanIslands.Mr.VencadachellumwasappointedRetailManagerin2012.

Afsar SoobadarDistribution Manager

AfsarSoobadar,DistributionManager,joinedShellMauritiusin2004.HehassinceoccupiedthepostsofTransportandLogisticsManagerthenTerminalOperationsManager.Mr.SoobadarholdsaMastersdegreeinEngineeringManufacture&ManagementfromtheUniversityofManchester,UK,andaMastersinBusinessAdministrationfromManchesterBusinessSchool,UK.MrSoobadarisaBoardDirectorofESCOLboard(EnergyStorageCompanyLimited),anassociateCompanyofVEML.

TheVEMLmanagementteamisresponsibleforsupervisingthegeneralcourseofbusinessofthecompanyandadvisestheBoardofdirectors.


BoardMeetingsShalini Bunwaree-Nagdan

Marketing Manager

ShaliniBunwareeNagdanisholderofadegreeinIndustrialEconomicsfromtheUniversityofNottingham,UKandanMBAdegreefromtheUniversityofMauritius.Mrs.NagdanjoinedShellMauritiusin2001asSectorSalesManager.In2005,shewasappointedFuelsandBitumenHSSEManagerfortheIndianOceanclusterafterwhich,shebecametheB2B/B2CMarketingManagerforMauritiusin2007.PriortoherappointmentasMarketingManagerin2014,Mrs.NagdanhasoccupiedthepositionofFuelsSalesManagersince2009.

Ashvin RamdeneeMarine and Aviation Manager

AshvinRamdeneeisholderofaMasterofEngineeringdegreeinMechatronicsfromtheUniversityofLeeds,UK.HejoinedShellMauritiusin2000asPlantandSpecialityEngineer.Thereafter,hehasworkedindiversesectorswithintheGroupinEngineering,CustomerService,TerminalOperations,Planning,SupplyChainandStrategyatLocal,AfricanandGloballevels.Mr.RamdeneewasappointedMarineandAviationManagerinMarch2015.

Ravi RamjusBusiness-to-Business Manager

RaviRamjus,Business-to-BusinessManager,holdsaB.TechinMechanicalEngineeringfromtheUniversityofMauritiusandaMaster’sinBusinessAdministrationfromtheSurreyEuropeanManagementSchoolintheUK.Mr.RamjusjoinedShellMauritiusin1994andhasworkedinRetailoccupyingseveralpositionsatlocal,regionalandinternationallevels.Intheseroles,hehadtheopportunitytodriveseveralprojectssuchaspaymentsystemsandloyaltyprograms.Mr.RamjushasalsochampionedthesettingupofvariousstrategicalliancesbetweenVivoEnergyandrenownedoperatorsinthepayment,bankingandmobilefinancialindustry.

Theboardmeetsonaregularbasisandhasaformalscheduleofmattersreservedforit.Thisincludesmatterssuch as approval of the Annual Report, approvalofinterimdividendsandrecommendationoffinaldividends,approvalofmaterialcontractsandnominationofcandidatesforboard

membership.Theshareholderselecttheboardmemberseachyearattheannualmeeting.Eachdirectoriselectedby a separate resolution for a term ofoneyear.ThefulllistofmattersreservedtotheboardfordecisionisavailablefromtheCompanySecretary.

Mar 26 May 15 Aug 14 Nov 13 2015 2015 2015 2015

Chairman MrChristianChammas � � � �(byaudioconference) MrBernardLeGoff X X X XManaging Director MrPawanKumarJuwaheer � � � � (alsoas alternate to MrBLeGoff

Directors MrPatrickCrighton � � � �MrTimothyTaylor � � � � (Chairman)MrRogerLeung X � � �

WitheffectfromNovember2012,eachtimetheChairmanisnotinapositiontochairBoardmeetings,theChairmanshipwillbeheldbyanindependentdirector.

Attendance of board meetings in 2015

In2015,theattendanceofthedirectorswasasfollows:

Board committees

TheBoardhasthreestandingcommitteesmadeupofExecutiveandNon-executiveDirectorstoassistinthedischargeofitsduties.Thecommittees,whicharesetoutbelow,meetregularlyunderthetermsofreferencesetbytheboard.AsfromMarch27,2007theNominationandRemunerationcommitteeformspartoftheCorporateGovernancecommittee.



Terms of Reference of Audit and Risk Committee (ARC)

ConstitutionTheARC,establishedbytheBoardof the Company, shall consist of at leasttwobutnotexceedingthreeNon-executiveDirectors(NED).TheChairpersonofthecommitteeshallbeanindependentNED(asdefinedbytheCodeofCorporateGovernanceofMauritius).

Eachmembershallbefinanciallyliterate.Atleastonemembermusthaveaccountingorrelatedfinancialexpertise.

Membersshallbeappointedfortwo(2)yearstermofnoticesolongastheyremainadirectoroftheCompany.

Auditandriskcommitteemembersshall not serve simultaneously on theauditcommitteeofcompaniesinthesamefieldasthepresentCompanyandofmorethantwoother public companies without the approvalofthefullboard.

ObjectivesTheauditandriskcommitteeshallassisttheboardinmonitoringandoverseeingitsfinancialresponsibilities.Itsmainobjectivesshallbeto: •Oversee the integrity of the

financialreportingprocess

andensurethetransparencyandperformanceofpublishedfinancialinformation.

•Reviewtheeffectivenessandperformance of the Company’s internalfinancialcontrolandriskmanagementsystem.

•Evaluatetheworkoftheinternalauditfunctionandoftheexternalauditors.

• Review the Company’s process compliance with legal andregulatoryrequirementsaffectingfinancialreportingand,ifapplicable,itscodeofbusinessconduct.

TheARCcommitteewillmaintaineffectiveworkingrelationshipswiththeboardofdirectors,management,andtheexternalandinternalauditors.Thedutiesandresponsibilities of a member of theauditandriskcommitteeareinadditiontothosesetoutforamemberoftheboardofdirectors.

MeetingsOnly committee members will attendmeetings.Aquorumofanymeetingshallbetwo(2)members.Theauditandriskcommitteemay invite such other persons (e.g.otherdirectors,theGeneralManager,headoffinance,headofinternalauditandexternalauditseniorpartner)toitsmeetings,asitdeemsnecessary

Theexternalandinternalauditorsshallbeinvitedtomakepresentationstotheauditandriskcommitteeasappropriate.Atleastonce a year, the committee shall meetwiththeheadofinternalauditandseniorpartneroftheexternalauditorswithoutthepresenceofexecutivemanagementtodiscussanymattersthateitherthe committee or these two partiesbelieveshouldbediscussedprivately.

Thecommitteeshallmeetasoftenasitdeterminesnecessaryorappropriate but not less frequently thanquarterly.

Thecommitteechairmanshallconvene a meeting upon request of any committee member who considersitnecessary.

Thesecretaryoftheauditandriskcommittee shall be the Company secretary, or such other person as nominatedbytheboard.

Thesecretaryofthecommitteeshallcirculatetheminutes,agenda,andbackgroundmaterialsofmeetings to the members of the committeeandtothechairmanoftheboardatleastaweekbeforethemeeting.

Thebackgroundmaterialmustincludeallsuchmanagementaccounts,financialstatements,internalandexternalauditreportsandinternalcontrolevaluationsthatareavailable.

Thechairmanofthecommitteeoranother member of the committee shallattendtheboardmeetingatwhichthefinancialstatementsareapproved.

Thecommitteeshouldmeetwithin-houselegaladviseronaregularbasis(ifoneisappointed).Meetingswithoutsidelegaladvisershouldbeheldifitisdeemednecessary.

Board authority (et al)Theboardauthorisestheauditandriskcommittee,withinthescopeofitsresponsibilitiesto: •Investigateanyactivityitdeems

appropriate, •Appointindependentadvisers

andprofessionals(accountants,lawyersandsoon)asitdeemsnecessary to carry out its duties,

•Instructanyofficeroremployee of the Company toattendanymeetingsandprovidepertinentinformationasnecessaryandappropriate,

•Haveunrestrictedaccesstomembers of management, employeesandrelevantinformation,

•Establishproceduresfordealingwithconcernofemployeesregardingaccounting, internal controls andauditingmatters,

•Makerecommendationstotheboardinrelationtotheappointment, termination andremunerationofexternalauditorsandevaluatetheworkof the latter,

•Review the performance of

theexternalauditorsandexercisefinalapprovalontheappointmentordischargeoftheauditors;and

•Pre-approveallauditservicesfeesandtermsaswellasreview policies for the provisiononnon-auditservicesbytheexternalauditors.

Theinternalauditmanagerreportsfunctionally to the chairman of theauditandriskcommittee(andadministrativelytotheGeneralManager).

Main responsibilitiesThebasicresponsibilityofthemembersoftheauditandriskcommitteeistoexercisetheirbusinessjudgementtoactinwhatthey reasonably believe to be in the best interests of the Company anditsshareholders.Indischargingthatobligationmembersshouldbeentitledtorelyonthehonestyandintegrity of the Company senior executivesanditsoutsideadvisorsandauditors,tothefullestextentpermittedbylaw.

Key responsibility in respect of financial reportingThecommitteeshall: •Reviewtheinterimfinancial

statements,annualfinancialstatementsandpreliminaryannouncements prior to their release,

•Meet with management internalauditorsandtheexternalauditorstoreviewthefinancialstatements,the

Termsof Reference



criticalaccountingpoliciesandpractices,andtheresultsoftheiraudit,

•Ensurethatsignificantadjustments,unadjusteddifferences,disagreementswithmanagementandmanagementletterarediscussedwiththeexternalauditors;and

•Review the other sections of the annual report before itsreleaseandconsiderwhether the information is understandable,consistentwithmembers’knowledgeoftheCompanyandunbiased.

Key responsibility in respect of internal controlThecommitteeshall: • Discuss the internal controls,

adheredtobytheCompany’smanagement,financial,accountingandinternalauditpersonnel,

• Discuss with management theCompany’smajorriskexposuresandthestepsmanagementhastakentomonitorandcontrolsuchexposures,

•Evaluatetheoveralleffectiveness of the internal controlandriskmanagementframeworksandconsiderwhetherrecommendationsmadebytheinternalandexternalauditorshavebeenimplementedbymanagement,

•Ensurethatsignificantfindingsandrecommendationsnotedbytheinternalauditorsandmanagement’sproposedresponsearediscussedandappropriatelyactedon;and

•EvaluatetheinternalcontrolmatrixoftheCompanyonaquarterlybasisandobtainmanagement comments on fluctuationsinthescore.

Key responsibility in respect of internal auditThecommitteeshall: •EnsurethattheCompanyhas

anappropriateinternalauditfunction,

•Review the effectiveness of theinternalauditfunctionandensure that it has appropriate standingwithintheCompany;and

•Evaluatetheinternalauditdepartmentanditsimpacton the accounting practices internalcontrolsandfinancialreportingoftheCompany.

Key responsibility in respect of external auditThecommitteeshall: • Review on an annual basis the

performanceoftheexternalauditorsbasedonthescopeandresultsoftheirworkandmakerecommendationstotheboardoftheappointment,reappointment or termination

of the appointment of the externalauditors,

•Considertheindependenceandobjectivityoftheexternalauditor.

•Discussandreviewtheexternalauditors’proposedauditscope,planningandapproach in the light of the Company’s circumstances andchangesinregulatoryandotherrequirements;and

•Ensurethatsignificantfindings,accountingadjustmentsandrecommendationsnotedbytheexternalauditorsandmanagement’sproposedresponsearediscussedandappropriatelyactedon.

Responsibility in respect of compliance with laws and regulationsThecommitteeshall: •Review the effectiveness of

the system for monitoring compliancewithlawsandregulationsandtheresultsofmanagement’sinvestigationandfollow-up(includingdisciplinaryaction)ofanyfraudulentactsornon-compliance,

•Oversee the Company’s compliancewithlegalandregulatory provisions, its articlesofassociation,codeofconduct,by-lawsandanyrulesestablishedbytheboard;and

•Conductandauthorise

investigations into any matterswithintheauditandriskcommittee’sscopeofresponsibilities.

Evaluating performance and reporting responsibilitiesThecommitteeshall: • Assess the achievement of the

dutiesspecifiedinthecharterannuallyandmakeregularreportoftheirfindingstotheboard,

•Reviewandreassesstheadequacyofitschartereverytwo(2)yearsanddiscussanyrequiredchangeswiththeboard;and

•Recommendapprovaloftheannualreportandaccountstotheboard.

Terms of reference - Corporate Governance committee

MembershipThemembership,includingthechairmanship, of the Committee shallbeappointedbytheBoard.TheCorporateGovernanceCommittee shall consist of not lessthanthreemembersincludingthe Managing Director of the Company.Itshouldbecomposedofamajorityofindependentnon-executivedirectors.Aquorumshallbetwomembers.

Attendance at meetingsTheChairmanoftheBoard,theGroupChiefExecutive,theGroupHumanResourcesDirectorandother members of management shallattendthemeetings,ifinvitedbytheCommittee.ExecutiveServicesLtdshallbesecretaryoftheCommittee.

MeetingsMeetings of the Committee willbeheldastheCommitteedeemsappropriate.HowevertheCommitteeshouldmeetatleastonceayear.TheChairpersonofthe Committee or any member of the Committee may call a meeting atanyothertime.Thequorumfordecisionsofthe Committee shall be any two members present throughout the meeting who shall vote on the matterfordecision.

AuthorityTheCommitteeisauthorisedbytheBoardto: •Investigate, or cause to be

investigated,anyactivitywithinitstermsofreference;

•Obtainexternallegalorindependentprofessionaladviceandsuchadvisorsmaybeinvitedtoattendmeetingsasnecessary.

DutiesTheresponsibilitiesoftheCommitteeshallbeto: •Determine,agreeand

developtheCompany’sgeneral policy on corporate governanceinaccordancewiththeapplicableCodeofCorporateGovernance.

•Preparethecorporategovernance report to be publishedintheCompany’sAnnualReport.

•EnsurethatdisclosuresaremadeintheAnnualReportin compliance with the disclosureintheCodeofCorporateGovernance

•determine,agreeanddevelopthe company’s general policy onexecutiveandseniormanagement remuneration

•determinespecificremunerationpackagesforexecutivedirectorsofthecompany,includingbutnotlimitedtobasicsalary,benefitsinkind,anyannualbonuses,performance-basedincentives,shareincentives,pensionsandotherbenefits.

•determininganycriterianecessary to measure the performanceofexecutivedirectorsindischargingtheirfunctionsandresponsibilities

•determinethelevelofnon-executivedirectorsandindependentnon-

Terms of Reference Terms of Reference


Corporate Governance Report Corporate Governance ReportProfile of Management TeamTerms of Reference

Corporate Governance committee(Remuneration and Nomination committee)

MrTimothyTaylor(Chairman)MrPawanKJuwaheerMr Roger Leung

Audit and Risk Management committee

MrRogerLeung(Chairman)MrTimothyTaylor

Feb 06 2015

Chairman MrTimothyTaylor �Directors MrPawanKumarJuwaheer �MrRogerLeung �

Mar 19 May 11 Aug 07 Nov 06 2015 2015 2015 2015

Chairman MrRogerLeung � � � �Director MrTimothyTaylor � � � �

executivedirectorsfeestoberecommendedtotheshareholdersattheMeetingofShareholders

•ascertain whether potentialnewdirectorsarefitandproperandarenotdisqualifiedfrombeingdirectors.Priortotheir appointment, their backgroundsshouldbeinvestigatedthoroughly;

•ensure that the potential newdirectorisfullycognisantofwhatisexpectedfromadirector,ingeneral,andfrom

him or her in particular •ensure that the right balance

ofskills,expertiseandindependenceismaintained;

•ensure that there is a clearly definedandtransparentprocedureforshareholderstorecommendpotentialcandidates;

•ensure that potential candidatesarefreefrommaterialconflictsofinterestandarenotlikelytosimplyactintheinterestofamajorshareholder,substantialcreditororsignificantsupplier

ofthecompany.Thisisof particular importance whenacandidatehasbeennominatedbyvirtueofashareholder’sagreement,orothersuchagreement.

•ensurethatthosedirectorswho, in the opinion of the board,haveeitheractedinaccordancewiththeinstructionsofathirdpartyorhavenotdischargedtheirdutiesasdirectorstothesatisfactionoftheboard,notbenominatedforre-election.

Directors in joint ventureEnergy Storage Company Limited

VivoEnergyMauritiusLimitedholds50%ofthesharesofEnergyStorageCompanyLimited(ESCOL).TheBoarddirectorsofESCOLandtheirattendancetotheESCOLboardmeetingin2015areasfollows:

May 07 Dec 03 2015 2015

Chairman MrBashirallyACurrimjee X XDirectors MrDavidMuraguriMurriithi X �MrPawanKumarJuwaheer � �MrMohammedAfsarSoobadar � �MrsAnne-SolangeMarieBernadetteFrancoise � XRenouard(resignedon15October2015)MrMathieuSoulas � �(alternatetoMrBashirallyACurrimjee) (Chairperson) (Chairperson)MrPatrickCrighton(alternatetoMrDavidMuraguriMurriithi) � XMrPeyamiOven(appointedon03December2015) X �


Mer Rouge Oil Storage Terminal Company Limited

VivoEnergyMauritiusLimitedholds25%ofthesharesofMerRougeOilStorageTerminalCompanyLimited(MOST),ajointventuresetupwiththeoilcompaniestobuildandoperateanadditional25,000metrictonsmotorgasolinedepotinMerRouge.AttendancetotheBoardmeetingsin2015isasfollows:

Jan 13 May 14 2015 2015

Chairman MrRanjanKumarMohapatra(resignedon15September2015) � �MrRahulBharwaj(appointed26January2016) X X Directors MrsJoanNjeriNjoroge � �MrPawanKumarJuwaheer � �MrDavidMuraguriMurriithi X XMrsAnne-SolangeMarieBernadetteFrançoise � �Renouard(resignedon14January2016)MrsZalhattaAliBenAliMrRajeevMohan(resignedon20May2015) � �MrSagarMudhole(appointedon04June2015) X �MrMohunlallBanydeen � �MrPatrickCrighton(alternatetoMrDavid � �MuraguriMurriithi)MrJitendraKumar(resignedon20May2015) X �MrOayamiOven(appointed26January2016) X X

Vivo Energy HR performance, rewards and benefits philosophy

PeopleinVivoEnergyarecriticalto the achievement of our businessobjectives.VivoEnergycompensation policies, practices, andsystemsareintendedtorecogniseandsupport:

l Individualandbusinessperformance;bothshortandlongterm;

l VivoEnergycorevalues,businessprinciplesandpeopleprinciples;

l Businessandpeoplestrategies;l Our strong commitment to sustainabledevelopment;

l Marketcompetitivenessandthe importance of internal relationships;and


l Differentbusinessandcountryeconomic,social,legal,andregulatoryenvironments.

Performanceandrewardpoliciesshouldhelppeopleexcel,fosteraffiliationwithVivoEnergy,andencouragebehaviourthatleadstotheachievementofbusinessandpersonalobjectives.

BenefitsthatareprovidedorenabledbyVivoEnergycompaniesare another important component of the employee value proposition andsupportourattractionandretentionstrategies.Benefitsthatarecommonfosteraffiliationandcommunityspiritandofferafoundationforthetotalcompensationpackage.

Ourpayandbenefitsphilosophy,objectivesandstandardsapplytoVivoEnergycompaniesthat

employpeopleonVivoEnergytermsandconditionsandshouldbebroadlycommunicatedandunderstoodbyall.

ObjectivesVivoEnergycompanieswilloperateperformance,rewardandbenefitsystemsthat:

l Alignemployeeandshareholderinterests;

l Supporttheattractionandretention of the best talent at all levelswhofitourbusinessneeds;

l Assistmobilityandavoidcreating barriers to movement within a business, country or VivoEnergy;

l Recognise both common interestsandindividualpreferences;and

l Aretransparentandwellexplained.


Inadditiontothesesharedobjectives,thedifferentelementsofthetotalcompensationpackagefocusondifferent,althoughcomplementary,goals.

Performance and rewardsl Differentiate on the basis of performanceandvaluetothebusiness;and

l Encouragegrowthanddevelopmentasindividualsandteamplayers.

Benefitsl Provideastandardisedplatform

that allows other elements oftherewardstrategytodifferentiateonthebasisofperformance;

l Arecosteffectiveandtaxadvantaged,whereVivoEnergypurchasingpowerprovidesleverageoverindividualpurchasingpowertoprovideforcostreductionandrisksharing;

l Supportlong-termsocialobjectivesforthecommunitieswithinwhichwework;

l Recognise the legislative environmentsandcompetitivemarketswithintheseenvironments;and

l Support sharing of responsibility between the state, the employerandtheemployee.

StandardsAllrewardandbenefitprogrammes must comply fullywithappropriatelawsandregulationsandourBusinessPrinciples:

l Ourcompetitivereference:Tocomparetorepresentativeemployersinthemarketsinwhichwecompetefortalent.

l Ourcompetitiveobjective:Tohavesalaryandbenefitsthatresultinafairandcompetitivemarketpositionamongthecompetitivereferencegroup.Thepayelementwithinthetotalmixismoreimportantthanbenefitsinourcompetitivepositioning-aimedatdeliveringacompetitivepositiononTotalCashandTotalCompensation(includingbenefits).

Policies and practice on ethics

Our approach to business integrityOur commitment to business integrityisclearandunequivocal;VivoEnergyMauritiusLimitedinsistsonhonesty,integrityandfairness in all aspects of our businessandexpectsthesamein our relationships with all those withwhomwedobusiness.Wedonotbribe,nordoweacceptbribes.Wedonoteffectillegalpaymentsofanykindandinvestigateallsuspiciouscircumstances.Seriousactionistakenagainstanyemployeefoundtohavebreachedourfirm‘nobribes’policy.Corruptioncanoccurinallpartsoftheworldandatalllevels.Ourpolicyisthatthedirectorindirectoffer,payment,soliciting or acceptance of bribes inanyformisunacceptable.Facilitation payments are also bribesandshouldnotbemade.


Declaration of conflict of interestEmployeesmustavoidconflictsof interest between their private activitiesandtheirpartintheconductofCompanybusiness.Theymustalsodeclareinwritingto the Company potential conflictsofinterest.Allbusinesstransactions on behalf of a VivoEnergyCompanymustbereflectedaccuratelyandfairlyinthe accounts of the Company inaccordancewithestablishedproceduresandaresubjecttoauditanddisclosure.Wereportannually on any breaches of our ‘nobribes’policy.

Our assurance letter process helps us to monitor whether wearelivingbyourPrinciples,inaccordancewithbothexternallawsandregulationsandwithourinternalstandards.Eachyear,the Managing Director reports backtotheChiefExecutive

OfficerofVivoEnergy,inwriting,whetherVivoEnergyMauritiusLimitedhasactedinlinewiththeserequirementsandtoreportmaterialexceptions.Actionistakentoaddressareasofnon-compliance.

Code of ConductTheCodeofConducthelpsustolivebyourbusinessprinciples.AsShellLicensee,wefullyabidebytheStatementofGeneralBusinessPrincipleswhichprovidesthefoundationforhowVivoEnergycompaniesdobusinessaroundtheworld.Manyoftheseprinciplescontainlegalandethicalcompliancerequirements.Thecodeisasinglesourceofinformation about what those compliance requirements mean, withguidanceonwhentousethem,howtousethemandhowtobesure.


Responsibility to employeesWeprovideemployeeswithgoodandsafeworkingconditions,andcompetitivetermsandconditionsofemployment.

Responsibility to customersWe remain at the forefront of innovation, in consistently offering topqualityproductstoourcustomersatverycompetitiveprices.

Company’s policies and practices with regards to social issues

VivoEnergycompaniesaimtobegoodneighboursbycontinuouslyimproving the ways in which we contributedirectlyorindirectlytothegeneralwell-beingofthecommunitieswithinwhichwework.

We manage the social impacts of ourbusinessactivitiescarefullyandworkwithotherstoenhancethebenefitstolocalcommunities,andto mitigate any negative impacts fromouractivities.

Inaddition,VivoEnergycompaniestakeaconstructiveinterestinsocietalmatters,directlyorindirectlyrelatedtoourbusiness.

Corporate Social Responsibility

VivoEnergyMauritiusLimitediscommittedtobeingaresponsiblecorporatecitizenandcaringfor the communities in which itoperates.Tothisend,theCompanyisfullyengagedinCommunityInvestmentprojectswhichpromoteroadsafety


awareness among the country’s youthandthegeneralpublic;provideeducationaltrainingprogrammesforunderprivilegedlearners;andencourageenvironmentalawarenessandsustainabledevelopment.

VEMLiscommittedtobeingaresponsible corporate citizen andcaringforthecommunitiesinwhichitoperates.Tothisend,theCompanyisfullyengagedinCommunityInvestmentprojectswhichpromoteroadsafetyawareness among the country’s youth;provideeducationaltrainingprogrammesforunderprivilegedlearners;andencourageenvironmentalawarenessandsustainabledevelopment. In2015,theCompanyranthethirdeditionofCiteZen,thesocialinvestmentprojectonroadsafetyeducationtargetingyoungstudents.ARoadSafetyDay,where100,000primaryschoolchildrenweresensitisedinMauritiusandRodrigues,wassuccessfullyrunincollaboration with the Ministry of EducationandHumanResources. VEMLisactiveinthedevelopmentanddeliveryofarangeofeducationalinitiativesacrossthecountry.Manyareaimedatchildrenandyoungpeople,withtheobjectiveoffosteringacademicachievement, entrepreneurship andlearning.Othersarefocusedonskillsandknowledgeforlife.InpartnershipwiththeNon-GovernmentalOrganisation,Junior

AchievementMascareignes(JAM),thecompanysupportslife-skillseducationforunderprivilegedchildren.Sincethebeginningofthepartnership,wehavesponsored5,500children. We believe that we have a responsibilityineducatingthegeneral public on the safe use of gasandinthatrespect,afterrunninganeducationcampaignonsafeuseof gas in Mauritius, we ran a similar programinRodrigues. In2015,wealsosupportedournationalteamatIndianOceanIslandsGames2015whichwasheldinReunionIsland.ThroughESCOL,thecompanysponsoredthetechnicaleducationoffourstudentsstudyingatCollegeTechniqueSaintGabriel. VEMLiscommittedtoprotectingtheenvironment.Wehaveadirectresponsibility for the impact that VEMLmakesasabusinessandweworkhardtoreduceourimpactontheenvironment.In2015,wecontinuedmaintainingandenhancingtheareanearthecompany’sofficeinRocheBois. In2015,theCompanycontributedRs2.4milliontoCorporateSocialResponsibilityprojects.

Political donations

VivoEnergyMauritiusLimitedhasnomandatetoparticipatein party politics, although, as a majorgeneratorofeconomic



wealth,theenergyindustryclearlyhasconsiderablesocialandpoliticalimpact.However,whendealingwithgovernment,VivoEnergyMauritiusLimitedhastherightandresponsibilitytomakeitspositionknownonany matter, which affects the Company, its employees, its customers,oritsshareholders.VivoEnergyMauritiusLimitedhasalsotherighttomakeitspositionknownonmattersaffectingthecommunity, where the Company hasacontributiontomake.Wedonotmakedonationstopoliticalpartiesandtreatthisissueinthesamewayasbriberyandcorruption.Wereportannuallyonthe implementation of this policy ofnopoliticalpayments.During the year, the Company madenopoliticaldonations.

Risk management and internal control

Theapproachtointernalcontrolisbasedontheunderlyingprincipleof line management’s accountability forriskandcontrolmanagement.TheriskandinternalcontrolpolicyexplicitlystatesthattheCompanyhasarisk-basedapproachtointernalcontrolandthatmanagementis responsible for implementing, operatingandmonitoringthesystem of internal control, which is designedtoprovidereasonablebutnot absolute assurance of achieving businessobjectives.

Theapproachtointernalcontrolincludesanumberofgeneralandspecificriskmanagement

processesandpolicies.WithintheessentialframeworkprovidedbytheStatementofGeneralBusinessPrinciples,theprimarycontrolmechanismsareself-appraisal processes in combination with strict accountability for results.Thesemechanismsareunderpinnedbyestablishedpolicies,standardsandguidancematerial that relate to particular typesofrisk;structuredinvestmentdecisionprocesses,timelyandeffectivereportingsystemsandperformanceappraisal.

Examplesofspecificriskmanagementmechanismsinclude:l regularreviewofsignificantrisksbythemanagementteam;

l a common health, safety, security andenvironment(HSSE)policy,a common requirement for HSSEmanagementsystems,andexternalcertificationofthe environmental component ofsuchsystemsformajorinstallations;

l afinancialcontrolhandbookthatestablishesstandardsforthe application of internal financialcontrols;

l arrangements for the management of property, liabilityandtreasuryrisks;and

l abusinesscontrolincidentreporting process that enables monitoringandappropriatefollow-upactionsforincidentsarising as a result of control breakdowns.Lessonslearnedfromtheseincidentsareusedto improve the overall control framework.

Aformalisedself-appraisalandassurance letter process is in place.Annually,themanagementofeverybusinessunitprovidesassuranceastotheadequacyofgovernancearrangements,riskandinternalcontrolmanagement,HSSEmanagement,financialcontrolsandreporting,treasurymanagement,brandmanagementandinformationmanagement.TheManagingDirectoralsoprovidesassuranceregardingcompliance with the Statement ofGeneralBusinessPrinciplesandotherimportanttopics;aspart of this process business integrity concerns or instances of bribery or illegal payments are tobereported.AssuranceletterresultsincludinganymaterialqualificationsarereviewedbyVivoEnergyAuditandRiskCommittee

andsupportrepresentationsmadetotheexternalauditors.

Inadditiontothesestructuredself-appraisals,theassuranceframeworkreliesuponobjectiveappraisalsbyinternalaudit.Theresultsofinternalaudit’srisk-basedreviewsofoperationsprovideanindependentviewregardingtheeffectivenessofriskandcontrolmanagementsystems.Theseestablishedreviews;reportingandassuranceprocessesenableVivoEnergytoregularlyconsidertheoveralleffectivenessof the system of internal control andtoperformafullannualreviewofthesystem’seffectiveness.Takentogether,theseprocessesandpracticesprovideconfirmationtoVivoEnergyholdingcompaniesthatrelevantpoliciesareadoptedandproceduresimplemented



withrespecttoriskandcontrolmanagement.

Risk related to credit

CreditriskisoneoftheCompany’skeyrisks.VivoEnergyhasdevisedasetofrulesthatapply across the continent on thatsubject.Itemsonwhichthispolicy place a lot of emphasis includecarryingoutcustomerriskassessmentbeforeanydeliveryismadetoacustomerandalsoat regular intervals, setting of a creditlimitbycustomerandusingtheEnterpriseResourcePlanningsystemtoavoidtradingoutsideofapprovedconditions.

Risk related to foreign exchange

MorethanonethirdoftheCompany’sbusinessiscarriedoutinforeigncurrency.TheCompany’sriskmitigationpolicywith respect to foreign currency istominimiseexposurebymatching currencies whenever feasibleandenteringforwardcontractswheneverpossibleandeconomicallyviable.

Risk related to supplies

Regularity of supplies is of vital importance to enable Vivo EnergyMauritiusLimitedtomeettheneedsofitscustomers;consequentlyVivoEnergyhassecuredthepositionofOilIndustrycoordinatorwithTheStateTradingCorporationforthemonitoringofallproductimports.

Whereasproductdemandforinlandtradeisfairlypredictable,withtransferpricesfixedmonthlyandregulatedbytheAutomaticPricingMechanism,internationalsalesarenotpricecontrolled,veryseasonalandunpredictable.Inthisrespect,efficientmanagementoftheproductreplenishmentcycle,productavailabilityandfreightaretherefore of essence to ensure continuityofservice.Therisktothebusinessisproductshortageorstockoutcausingcurtailmentofsales,lossofrevenueandbusiness.

Risk related to Health, Safety, Security and Environment (HSSE)VivoEnergyMauritiusLimitedoperatesunderacommonsetofbusinessprinciples,supportedbypoliciesandbusinesscontrols.TheseincludeaHealth,Safety,Security,Environment(HSSE)andSocialPerformance(SP)CommitmentandPolicy,whichrequire that our Company shall have a systematic approach to HSSE&SPmanagement.WehaveputinplacetheVivoEnergymandatoryprocedureforanHSSEManagementSystem(HSSEMS),whichisastructuredsetofcontrolsformanagingthebusinessandtoensureanddemonstratethatbusinessobjectivesaremet.ThismanagementsystemtakesintoaccountHSSEMSimplementationrequirements,incorporatedinthebusinesslevelHSSEMSaswellasthevariousclassesofbusinessHSSEMSsrelevanttoouroperations.Classesofbusinessaredistribution,marine,aviation,business-to-

business,LPG,lubricantsandretail.TheelementsofthismanagementsystemareorganisedaccordingtoVivoEnergyguidanceofhowtointegrateHSSEintothebusinessandmanageHSSEmattersasanyothercriticalactivity.InlinewithourHSSE&SPpolicytoachieve continuous performance improvement,theindividualclassesof business action plans have been wellobservedandcompleted.

Risk related to information security

VivoEnergyMauritiusLimitedhasin place an Information Security programmethatensuresitadherestotheInformationsecuritybasedonISO27001.Disasterrecoveryplansareinplaceandtestedtoensure that there is minimum businessdisruptionintheeventofadisaster.Allnewstaffandcontractorsarecontinuallycoachedtocompletethemandatorye-learninginformationsecuritytrainingmodule,theobjectiveof the training being to enhance awareness,educationandbehaviour against information securitythreats.

Risk related to reputation

VivoEnergyMauritiusLimitedandtheVivoEnergycompaniesvalue the perception of stakeholdersasnoCompanyorbusinessoperatesinavacuum.Ourlicencetooperateandourveryexistencerelyontheunderstanding,goodwilland

emotionofstakeholders.Assuch,VivoEnergyMauritiusLimitedaddressestheinterests,concernsandperceptionsofkeystakeholdersthroughavarietyofmethods.Includedarestatementsofourcommitments,policiesandstandardsandhumanresourcerolesofCommunicationsandManagingDirector.Theroleof the Managing Director, in particular,isspecificallydesignedto protect the reputation of Vivo Energycompaniesoperatingin a country with the support from Communications both locallyandatVivoEnergylevel.Statements of commitments, policiesandstandardsadoptedbyVivoEnergyMauritiusLimitedincludetheStatementofGeneralBusinessPrinciples,CodeofConduct,Commitmentto Sustainable Development, HSSE&SPCommitmentandPolicy,DiversityandInclusivenessStandard,EnvironmentalMinimumStandards,Environmental,SocialandHealthImpactAssessment,MinimumHealthStandards,SecurityStandards,HIV/AIDSPolicy,HumanRightsStandard,RoadTransportSafetyPolicy,CodeofEthicsandadoptionoftheMauritianCodeofCorporateGovernance.

Risk related to fluctuating oil prices

Oilandoilproductspricescanvary as a result of various factors, includingnaturaldisasters,politicalinstabilityorconflicts,economicconditionsoractiontakenby

majoroil-exportingcountries.Fluctuationsinthesepricescouldtestourbusinessassumptions,andcouldhaveanadverseimpactonVivoEnergyMauritiusLimitedinvestmentdecisions,operationalperformanceandfinancialposition.

Risk related to operational hazards, natural disasters and pandemics

TheactivitiesofVivoEnergyMauritiusLimitedplaceitattheriskofoperationalhazards,naturaldisastersandpandemics,whichcouldresultinlossoflife,adverseimpactontheenvironmentandcausedisruptiontobusinessactivities.RealisationoftheseriskscouldhaveanadverseeffectontheresultsofoperationsandfinancialpositionoftheCompany.

Risk related to change in legislation and fiscal and regulatory policies

TheoperationsofVivoEnergyMauritiusLimitedaresubjecttoriskofchangeinlegislation,taxationandregulation,changesthatcouldhaveanadverseeffecton the results of operations andfinancialpositionoftheCompany.

Risk related to effective governance

SuccessfuldeliveryoftheVivoEnergyMauritiusLimitedstrategy requires effective



governance.Thereisariskofincorrectdesignandoperationof internal control, which mayresultindamagetotheCompany’sreputation,financialresultsandemployees.

Risk related to partners and ventures

ThereisariskthatVivoEnergyMauritiusLimitedcouldlosetheabilitytoinfluenceandcontroltheoperations,behavioursandperformance of business activities of other parties with whom the Companyisengaged.Thiscouldresultindamagetostaff,assetsandfinancialresults.

Risk related to economic and financial market conditions

VivoEnergyMauritiusLimitedissubjecttodifferingeconomicandfinancialmarketconditions.Therearerisksfrompoliticalandeconomicinstability.RealisationofoneoftheseriskscouldhaveanadverseimpactontheresultsofoperationsandfinancialpositionofVivoEnergyMauritiusLimited.

Internal controls

TheGrouphasaninternalauditplaninplace.Theplanissetupsuch that internal controls are reviewedatregularintervalsinalloperatingunits.

Management agreements

TheCompanydoesnothaveanyshareholders’agreementthat affects the governance of theCompanybytheBoard.Asmentionedinpage29ofthedirectorsreport,theCompanyhas a licence agreement with ShellBrandsInternationalAGanda contract for the provision of serviceswithVivoEnergyAfricaServices.Apartfromthesetwocontracts,theCompanydoesnothave any management agreement withthirdpartieswherethethirdpartyisadirectororaCompanyownedbyadirector.

Shareholder communicationsTheBoardrecognisestheimportanceoftwo-waycommunications with its shareholdersand,inadditiontogivingabalancedreportofresultsandprogressateachannualmeeting,VEMLrespondstoquestionsandissuesraisedbyinstitutionsandprivateshareholders.InformationaboutVEMLisavailableonthewebsitewww.vivoenergy.com.

Inaddition,shareholders’questionscanbeaskedvia:Telephone:+2302061234Fax:+2302401043Facebook:VivoEnergyMauritiusTwitter :VivoEnergyMtius

Annual Meeting of ShareholdersTheAnnualMeetingofShareholdersofVEMLisheldonceayeartodiscussthereportoftheBoardofdirectors,toapprovetheauditedfinancialstatements, to elect any new directors,toappointtheauditorsandtoauthorisethedirectorstofixtheirremuneration,toratifythedividendsdeclaredbytheBoardofdirectors.

TheAnnualMeetingofShareholdersshallbecalledbytheBoardofdirectors.TheitemstobedealtwithatthemeetingaredeterminedbytheBoardofdirectorsandarespecifiedintheagendaincludedinthenoticeofconvocation.ASpecialMeetingofShareholdersmaybecalledbytheBoardonwrittenrequestofshareholdersholdingsharescarrying together not less than 5%ofthevotingrightsentitledtovoteonanissue.

TheresolutionsoftheAnnualMeetingofShareholdersshall,exceptinthosecaseswherethelaw or the Constitution prescribe alargermajority,bepassedbyabsolutemajorityofthevotescast.Atannualmeetings,shareholdersmay cast one vote for each ordinaryshareheldbythem.

ShareholderInformation

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Vivo Energy Mauritius Limited share price5 January to 31 December 2015 compared to SEMDEX

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Data Analysis on Shareholding

Number of Shares Number of Shareholders Number of Shares Owned % of Total Issued Shares

1-500 2,256 441,101 1.50% 501-1,000 538 480,046 1.64% 1,001-5,000 492 1,206,300 4.11% 5,001-10,000 94 685,912 2.34% 10,001-50,000 78 1,613,202 5.50% 50,001-100,000 7 504,806 1.72%100,001-250,000 4 705,217 2.41%250,001-500,000 1 273,937 0.93%500,001-1,000,000 1 788,415 2.69% Over1,000,000 1 22,623,316 77.15% Total 3,472 29,322,252 100.00%

List of 10 Major Security Holders as at 31 December 31, 2015

SECURITY HOLDER’S FULL NAME NO. OF SECURITIES % HOLDING

VIVOENERGYMAURITIUSHOLDINGSB.V. 22,623,316 77%NATIONALPENSIONSFUND 788,415 3%MRLIMBERGLAMPOTANG 273,937 1%MRLIMKWATCHOWLAMPOTANG 228,652 1%STATEINSURANCECOMPANYOFMAURITIUSLTD 204,465 1%SECTIONSROLLINGLIMITED 137,100 0%MRNJPMAURICERAFFRAY 135,000 0%THEMCBLTD(A/CTHESUGARINDUSTRYPENSIONFUNDBOARDII)REF:IM/113 87,443 0%NATIONALSAVINGSFUND 84,700 0%MRGARYLAMPOTANG 82,415 0%

ApartfromVivoEnergyMauritiusHoldingsB.V,noothershareholderownsmorethan5%ofthesharecapitaloftheCompany.

Shares held by each director at December 31, 2015

ThedirectorsfollowtheprinciplesofthemodelcodeonsecuritiestransactionsbydirectorsasdetailedinAppendix6oftheMauritiusStockExchangerules.

ThedirectorshavenotheldortradedinanysharesoftheCompanyduringtheyear.


Shareholders’ diary

Financial Year End December31,2015Annual Meeting of Shareholders May13,2016Reports and profits statement IncomeStatementfortheyearended31December2015 Published March31,2016CondensedInterimIncomeStatementforthequarterended31March2016 Published May15,2016CondensedInterimIncomeStatementforthesixmonthsended30June2016 Published August15,2016CondensedInterimIncomeStatementfortheninemonthsended30September2016 Published November15,2016IncomeStatementfortheyearended31December2016 Published March31,2017(atlatest)

Dividend Q1InterimDividend Tobeannounced May15,2016Q1InterimDividend Payable June30,2016(atlatest)Q2InterimDividend Tobeannounced August15,2016Q2InterimDividend Payable September30,2016 (atlatest)Q3InterimDividend Tobeannounced November15,2016Q3InterimDividend Payable December31,2016 (atlatest)FinalDividend Tobeannounced March31,2017(atlatest)FinalDividend Payable May31,2017(atlatest)

ConstitutionTheCompany’sconstitutionisinconformity with the provisions oftheCompaniesAct2001andthose of the Listing Rules of the StockExchangeofMauritius.Itssalientfeaturesare:• Therearerestrictionsonpre-emptiverightsattachedtotheshares.

• TheCompanymayacquireandownitsshares.

• TheCompanymaynotissuefractionsshares.

• Shareholdersmaycasttheirvotesbypost.

• TheBoardconsistsofnotlessthantwo(2)ormorethanelevendirectors(11).

• Thereisrotationofdirectors

everyyearexceptfortheonewhoiselectedaschairpersonwhoretireseveryfouryears.

Dividend PolicyTheCompanywillpaydividendsonaquarterlybasis.ThetimingofBoardmeetingsshouldbeplannedsoastomeetthisobjective.DividendpaymentsshouldtakeintoaccountthedividendcalendaroftradingrulesoftheStockExchange.Ideally,dividendsshouldbedeclaredattheBoardmeetingswhichareheldinMayandNovembereachyear.TheDividendPolicyofVivoEnergyMauritiusLimitedistodeclareuptoamaximumof50%ofNetIncomeafterTax(NIAT)subject

tosufficientfundsandsolvencycertificate.ThesolvencycertificateshouldbesignedandapprovedbytheBoardofdirectorsinaccordancewiththeCompaniesAct.

Insider dealingVivoEnergybelievesitimportantinordertoprotectthereputationforhonestyandintegrityenjoyedbybothVivoEnergyanditsemployees that, where part of thesharecapitalofaVivoEnergyCompanyistradedonaStockExchange,thereshouldbenopossibility of suspicion that an employee or contractor of the Companyorapersonconnectedwith that employee or contractor whiledealingintheCompany’squotedshareshasusedconfidentialknowledgeforeitherhisownbenefitorthatofanotherperson.Betweenthedatesaperiodisclosedandtheresultsarepublished,anoticeissenttoallstaffaskingthemnottodealwithsharesduringsuchperiods.

Related party transactionsRelatedpartytransactionsaredisclosedinnote28ofthefinancialstatements.

Non-audit servicesDuringtheyear,theexternalauditorshaverenderednonon-auditservices.

Going concernThedirectorshaveareasonableexpectationthattheCompanyhasadequateresourcestocontinueinanoperationalexistencefortheforeseeable future, as set out in theChairmanandManagingDirector’sreports,andforthisreasonhasadoptedthegoing concern basis in preparing theannualfinancialstatements.

Registered officeVivoEnergyMauritiusLimitedCemeteryRoadRocheBoisPOBox85,PortLouiswww.vivoenergy.com

ByorderoftheBoardExecutiveServicesLimitedPerAhManWongTooYanACISSecretary



Statementof Compliance

(Section75(3)oftheFinancialReportingAct)

Name: Vivo Energy Mauritius Limited (“the Company”)

ReportingPeriod:Yearended31December2015

OnbehalfoftheBoardofDirectorsoftheCompany,weconfirmthattothebestofourknowledge,theCompanyhasnotcompliedwithsection2.8.

Reasonfornon-complianceisasfollows:Disclosingsalariesbybandsprotectsthepersonalprivacyofindividualsandthisisalsoinlinewithcurrentmarketpractice.

SIGNEDBY:

) ) ) DIRECTORS )

Report on the Financial StatementsWehaveauditedthefinancialstatementsofVivoEnergyMauritiusLimited(the“Company”)onpages67to109whichcomprisethestatementoffinancialpositionasat31December2015andtheincomestatement,statementsofcomprehensiveincome,changesinequityandcashflowsfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.

Directors’ Responsibility for the Financial Statements TheCompany’sdirectorsareresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewithInternationalFinancialReportingStandardsandincompliancewiththerequirementsoftheMauritianCompaniesAct2001,andforsuchinternalcontrolasthedirectorsdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditing.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

IndependentAuditor’sReportTotheShareholdersofVivoEnergyMauritiusLimited


Income Statement for the year ended 31 December 2015

Statement of Comprehensive Income for the year ended 31 December 2015

2015 2014 Note Rs’000 Rs’000

Sales 10,139,537 12,784,100Cost of sales ( 9,318,404) (12,079,052)

Grossprofit 821,133 705,048Other income 6 76,754 60,940Otherlossesonexchange-net 5,182 ( 10,794)Distribution costs ( 89,655) ( 93,467)Administrativeexpenses ( 477,980) ( 480,045)

Operatingprofit 7 335,434 181,682Finance income 8 1,867 677Finance costs 8 ( 8,097) ( 9,540)

Financecosts-net 8 ( 6,230) ( 8,863)Shareofprofitofjointventure 10,594 10,679

Profitbeforeincometax 339,798 183,498Incometaxexpense 9 ( 57,171) ( 29,167)

Profitfortheyear 282,627 154,331

Basicanddilutedearningspershare Rs 9.64 5.26Numberofsharesusedinthecalculation(000’s) 29,322 29,322

2015 2014 Note Rs’000 Rs’000

Profitfortheyear 282,627 154,331

Other comprehensive incomeItemsthatwillnotbereclassifiedtoprofitorloss:

Remeasurementsofpostemploymentbenefitobligations 21 22,904 27,541Deferredtaxliabilityonremeasurementsofpostemploymentbenefitobligations 20 ( 3,894) ( 4,682)

Other comprehensive income for the year 19,010 22,859

Totalcomprehensiveincomefortheyear 301,637 177,190

Report on the Financial Statements (continued)

OpinionInouropinion,thefinancialstatementsonpages67to109giveatrueandfairviewofthefinancialpositionoftheCompanyat31December2015andofitsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandardsandcomplywiththeMauritianCompaniesAct2001.

Report on Other Legal and Regulatory RequirementsCompanies Act 2001TheMauritianCompaniesAct2001requiresthatincarryingoutourauditweconsiderandreporttoyouonthefollowingmatters.Weconfirmthat:(a)wehavenorelationshipwithorinterestsintheCompanyotherthaninourcapacityasauditor;(b)wehaveobtainedalltheinformationandexplanationswehaverequired;and(c)inouropinion,properaccountingrecordshavebeenkeptbytheCompanyasfarasappearsfromourexaminationofthoserecords.

Financial Reporting Act 2004Thedirectorsareresponsibleforpreparingthecorporategovernancereport.OurresponsibilityistoreportontheextentofcompliancewiththeCodeofCorporateGovernance(the“Code”)asdisclosedintheannualreportonpages32to63andonwhetherthedisclosureisconsistentwiththerequirementsoftheCode.

Inouropinion,thedisclosureintheannualreportonpages32to63isconsistentwiththerequirementsoftheCode.

Other MatterThisreport,includingtheopinion,hasbeenpreparedforandonlyfortheCompany’sshareholders,asabody,inaccordancewithSection205oftheMauritianCompaniesAct2001andfornootherpurpose.Wedonot,ingiving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this reportisshownorintowhosehandsitmaycomesavewhereexpresslyagreedbyourpriorconsentinwriting.

PricewaterhouseCoopers RobertCoutet,licensedbyFRCDate:24March2016

IndependentAuditor’sReportTotheShareholdersofVivoEnergyMauritiusLimited(continued)


Statement of Financial Position - 31 December 2015

2015 2014 Note Rs’000 Rs’000

ASSETSNon-current assetsProperty,plantandequipment 12 1,056,118 908,682Intangible assets 13 2,124 -Prepaidoperatingleases 14 10,362 604Otherlong-termassets 15 6,524 11,425Interestinjointventures 16 46,402 35,807 1,121,530 956,518

Current assetsInventories 17 619,093 666,951Tradeandotherreceivables 18 690,102 1,018,886Cashandcashequivalents 24 67,664 55,990Incometaxasset 9 - 3,587 1,376,859 1,745,414

Total assets 2,498,389 2,701,932

EQUITY & LIABILITIESEquityShare capital 19 293,223 293,223Retainedearnings 431,917 215,315

Total equity 725,140 508,538

LIABILITIESNon-current liabilitiesDeferredincometaxliabilities 20 68,701 60,616Retirementbenefitobligations 21 53,426 81,723 122,127 142,339

Current liabilitiesBankoverdrafts 24 98,935 416,569Tradeandotherpayables 22 1,195,956 1,339,987DepositsonLPGcylinders 23 322,134 294,499Currentincometaxliabilities 9 34,097 - 1,651,122 2,051,055

Total liabilities 1,773,249 2,193,394

Total equity and liabilities 2,498,389 2,701,932

Approved by the Board of directors on 24 March 2016and signed on its behalf by: ) ) )DIRECTORS )

Statement of Changes in Equity for the year ended 31 December 2015

Share Retained Total Capital Earnings Equity Rs’000 Rs’000 Rs’000

At 01 January 2014 293,223 184,736 477,959

Comprehensive incomeProfitfortheyear - 154,331 154,331Other comprehensive income - 22,859 22,859

Total comprehensive income - 177,190 177,190

Transactions with ownersDividendsdeclared - ( 146,611) ( 146,611)

Total transactions with owners - ( 146,611) ( 146,611)

At 31 December 2014 293,223 215,315 508,538

At 01 January 2015 293,223 215,315 508,538

Comprehensive incomeProfitfortheyear - 282,627 282,627Other comprehensive income - 19,010 19,010

Total comprehensive income - 301,637 301,637

Transactions with ownersDividendsdeclared - ( 85,035) ( 85,035)

Total transactions with owners - ( 85,035) ( 85,035)

At 31 December 2015 293,223 431,917 725,140


Statement of Cash Flows for the year ended 31 December 2015

2015 2014 Rs’000 Rs’000

Cash flows from operating activitiesProfitbeforeincometax 339,798 183,498Adjustmentsfor :Depreciationonproperty,plantandequipment(Note12) 104,063 90,568Provisionforimpairmentofreceivables(Note18) 11,224 3,715Amortisationofintangibleassets(Note13) 106 -Amortisationofprepaidoperatingleases(Note14) 451 68Interestexpense(Note8) 8,097 9,540Profitondisposalofproperty,plantandequipment ( 65) ( 131)Interestincome(Note8) ( 1,867) ( 677)Unrealised(gain)/lossonexchange ( 3,123) 17,108Shareofprofitofjointventure(Note16) ( 10,594) ( 10,679)(Decrease)/increaseinretirementbenefitobligations ( 5,393) 901

Cash generated before working capital changes 442,697 293,911Decrease in inventories 47,858 328,501Decreaseinreceivablesandprepayments 321,173 158,099(Decrease)intradeandotherpayables ( 143,477) ( 899,834)IncreaseindepositsonLPGcylinders 27,635 6,748

Cash generated from/(used in) operations 695,886 ( 112,575)Interestpaid ( 8,097) ( 9,540)Incometaxpaid(Note9) ( 15,296) ( 31,911)

Net cash generated from/(used in) operating activities 672,493 ( 154,026)

Cash flows from investing activitiesProceedsfromdisposalofproperty,plantandequipment 68 206Interestreceived 1,867 677Loantodealers - ( 10,800)Dividendsreceivedfromjointventure(Note16) - 10,000Paymentsforpurchaseofproperty,plantandequipmentandintangibleassets(Note12) ( 263,941) ( 177,368)Investmentinjointventure(Note16) - ( 17,000)

Net cash used in investing activities ( 262,006) ( 194,285)

Cash flows from financing activitiesDividendspaidtocompany’sshareholders ( 85,035) ( 175,933)

Net cash used in financing activities ( 85,035) ( 175,933)

Net increase/(decrease) in cash, cash equivalents and bank overdrafts 325,452 ( 524,244)Cash,cashequivalentsandbankoverdraftsatbeginningofyear ( 360,579) 177,018Effectofexchangeratechangesoncashandbankoverdrafts 3,856 ( 13,353)

Cash, cash equivalents and bank overdrafts at end of year ( 31,271) ( 360,579)

1 GENERAL INFORMATION

VivoEnergyMauritiusLimited(the“Company”),isalimitedliabilitycompanylistedontheStockExchangeofMauritiusandisincorporatedanddomiciledinMauritius.

TheCompany’sprincipalactivityisthemarketinganddistributionofpetroleumproducts.Itsjointventure,EnergyStorageCompanyLimited,isinvolvedintheprovisionofLPGterminalusagefacilities.TheCompanyhasinvestedinanewjointventure,MerRougeOilStorageTerminalCo.Ltd,whichisinvolvedinthestorageofpetroleumproducts.

Thesefinancialstatementswereauthorisedforissuebytheboardofdirectorson24March2016.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Theprincipalaccountingpoliciesappliedinthepreparationofthesefinancialstatements,aresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

Basis of preparationThefinancialstatementsofVivoEnergyMauritiusLimitedhavebeenpreparedinaccordancewithInternational Financial Reporting Standards(“IFRS”)andIFRSInterpretationCommittee(IFRSIC)applicabletocompaniesreportingunderIFRS.Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention.ThefinancialstatementsarepresentedinMauritianRupees(‘Rs’),roundedtothenearestthousand.

Thepreparationoffinancialstatements in conformity with IFRS requires the use of certain criticalaccountingestimates.Italsorequiresmanagementtoexerciseitsjudgementintheprocessofapplying the Company’s accounting policies.Theareasinvolvingahigherdegreeofjudgementorcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatementsarediscussedinNote3.

Changes in accounting policies and disclosures(a) New standards, amendments and interpretations adopted by the Company

Therearenostandardsinterpretationsoramendmentstoexsitingstandardsthatareeffectiveforthefirsttimeforthefinancial

yearbeginning1January2015thathavehadamaterialimpactontheCompany.

(b) New standards, amendments and interpretations not yet adoptedAnumberofnewstandardsandamendmentstostandardsandinterpretations are effective for annualperiodsbeginningafter1January2015,andhavenotbeenappliedinpreparingthesefinancialstatements.NoneoftheseisexpectedtohaveasignificanteffectonthefinancialstatementsoftheCompany,exceptthefollowingsetoutbelow:

IFRS9,‘Financialinstruments’,addressestheclassification,measurementandrecognitionoffinancialassetsandfinancialliabilities.ThecompleteversionofIFRS9wasissuedinJuly2014.ItreplacestheguidanceinIAS39thatrelatestotheclassificationandmeasurementoffinancialinstruments.IFRS9retainsbutsimplifiesthemixedmeasurementmodelandestablishesthreeprimary measurement categories forfinancialassets:amortisedcost, fair value through OCI andfairvaluethroughP&L.Thebasisofclassificationdependsontheentity’sbusinessmodelandthecontractualcashflowcharacteristicsofthefinancialasset.

Notes to the Financial Statements31December2015


Notes to the Financial Statements - 31 December 2015 (continued) Notes to the Financial Statements - 31 December 2015 (continued)

Investments in equity instruments arerequiredtobemeasuredatfairvaluethroughprofitorlosswith the irrevocable option at inception to present changes in fair valueinOCInotrecycling.ThereisnowanewexpectedcreditlossesmodelthatreplacestheincurredlossimpairmentmodelusedinIAS39.Forfinancialliabilitiestherewerenochangestoclassificationandmeasurementexceptfortherecognition of changes in own creditriskinothercomprehensiveincome,forliabilitiesdesignatedatfairvaluethroughprofitorloss.IFRS9relaxestherequirementsforhedgeeffectivenessbyreplacingthebrightlinehedgeeffectivenesstests.Itrequiresaneconomicrelationshipbetweenthehedgeditemandhedginginstrumentandforthe‘hedgedratio’tobethesame as the one management actuallyusesforriskmanagementpurposes.ContemporaneousdocumentationisstillrequiredbutisdifferenttothatcurrentlypreparedunderIAS39.Thestandardiseffectiveforaccountingperiodsbeginningonorafter1January2018.Earlyadoptionispermitted.TheCompanyisyettoassessIFRS9’sfullimpact.

IFRS15,‘Revenuefromcontracts with customers’ dealswithrevenuerecognitionandestablishesprinciplesforreporting useful information to usersoffinancialstatementsabout the nature, amount, timing anduncertaintyofrevenueandcashflowsarisingfromanentity’scontractswithcustomers.

Revenueisrecognisedwhenacustomer obtains control of a goodorserviceandthushastheabilitytodirecttheuseandobtainthebenefitsfromthegoodorservice.ThestandardreplacesIAS18‘Revenue’andIAS11‘Constructioncontracts’andrelatedinterpretations.Thestandardiseffectiveforannualperiodsbeginningonorafter1January2018andearlierapplicationispermitted.TheCompany is assessing the impact ofIFRS15.

InJanuary2016,theInternationalAccountingStandardsBoard(IASB)issuedIFRS16,‘Leases’.IFRS 16 will replace the current IAS17standardonleases.Theeffectivedateis1January2019.Thenewstandardrequiresthatforlesseesallleases,regardlessof whether they are operating or financialinnature,willbeonthestatementoffinancialpositionandaccountedforas“financialleases”.Therearesomeexemptionswhichcouldbeappliedandtheserelate to leases of 12 months orless(short-termleases),andleasesoflow-valueassets.Forsuch leases, the lease costs will be accountedforinthesamewayasoperatingleasesareaccountedfortoday.IFRS16willsignificantlychange the way lessees account for leases, however lessor accounting remains largely the sameandtheclassificationasafinanceleaseoroperatingleaseisstillaconsideration.Thismeansthatstraight-liningofoperatingleaseswillremainforlessors.

Management has yet to assess the impactofthisnewstandard.

Segment reportingOperatingsegmentsarereportedin a manner consistent with the internalreportingprovidedtothechiefoperatingdecision-maker.Thechiefoperatingdecision-maker,whoisresponsibleforallocatingresourcesandassessingperformance of the operating segments,hasbeenidentifiedastheChiefExecutiveOfficer.

Foreign currency translationl Functional and presentation

currencyItemsincludedinthefinancialstatementsaremeasuredusingthe currency of the primary economic environment in whichtheentityoperates(the“functionalcurrency”).ThefinancialstatementsarepresentedinthousandsofMauritianRupee(Rs’000),whichistheCompany’sfunctionalandpresentationcurrency.

l Transactions and balancesForeign currency transactions aretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthe transactions or valuation whereitemsarere-measured.Foreignexchangegainsandlossesresulting from the settlement of suchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedinthe

incomestatement,exceptwhendeferredinothercomprehensiveincomeasqualifyingcashflowhedgesandqualifyingnetinvestmenthedges.

Foreignexchangegainsandlossesarepresentedintheincomestatementwithin‘Othergains/lossesonexchange–Net’.

Property, plant and equipment and depreciationProperty,plantandequipmentisstatedathistoricalcostlessdepreciation.Historicalcostincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.Costmayalsoincludetransfersfromequityof any gains/losses on qualifying cashflowhedgesofforeigncurrency purchases of property, plantandequipment.

Subsequentcostsareincludedin the asset’s carrying amount or recognisedasaseparateasset,as appropriate, only when it is probable that future economic benefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.Allotherrepairsandmaintenancearechargedtotheincomestatementduringthefinancialperiodinwhichtheyareincurred.

Nodepreciationisprovidedonfreeholdlandandonassetsinthecourseofconstruction.Buildingsonleaseholdlandaredepreciatedovertheperiodoftheleaseifless

than20years.Depreciationonotherassetsiscalculatedusingthestraight-linemethodtoallocatetheircostlesstheirresidualvaluesovertheirestimatedusefullives.Theannualratesusedare:

FreeholdBuildings5.0%Plantandequipment5.0%-10.0%Motorvehicles15.0%-25.0%Computerequipment33.3%Furnitureandfittings15.0%

Theassets’residualvaluesandusefullivesarereviewed,andadjustedifappropriate,attheendofeachreportingperiod.

An asset’s carrying amount is writtendownimmediatelytoitsrecoverable amount if the asset’s carrying amount is greater than its estimatedrecoverableamount.

Gainsandlossesondisposalsaredeterminedbycomparingtheproceedswiththecarryingamountandarerecognisedwithin‘Otherincome’intheincomestatement.

Intangible assetsAcquiredcomputersoftwarelicencesarecapitalisedonthebasisofthecostsincurredtoacquireandbringtousethespecificsoftware.Thesecostsareamortisedovertheirestimatedusefullives(notexceedingthreeyears).

Costsassociatedwithmaintainingcomputer software programmes arerecognisedasanexpenseasincurred.Developmentcoststhataredirectlyattributabletothe

designandtestingofidentifiableanduniquesoftwareproductscontrolledbytheCompany,arerecognisedasintangibleassets,when the following criteria have beenmet:

l It is technically feasible to completethesoftwareproductsothatitwillbeavailableforuse;

l Managementintendstocompletethesoftwareproductanduseorsellit;

l Thereisanabilitytouseorsellthesoftwareproduct;

l Itcanbedemonstratedhowthesoftwareproductwillgenerate probable future economicbenefits;

l Adequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseorsellthesoftwareproductareavailable;and

l Theexpenditureattributabletothesoftwareproductduringitsdevelopmentcanbereliablymeasured.

Directly attributable costs that are capitalisedaspartofthesoftwareproductincludethesoftwaredevelopmentemployeecostsandan appropriate portion of relevant overheads.

Otherdevelopmentexpendituresthatdonotmeetthesecriteriaarerecognisedasanexpenseasincurred.Developmentcostspreviouslyrecognisedasanexpensearenotrecognisedasanassetinasubsequentperiod.



Computersoftwaredevelopmentcostsrecognisedasassetsareamortisedovertheirestimatedusefullives,notexceedingthreeyears.

Impairment of non-financial assetsIntangible assets that have an indefiniteusefullifeorintangibleassetsnotreadytousearenotsubjecttoamortisationandaretestedannuallyforimpairment.Assetsthataresubjecttoamortisationarereviewedforimpairment whenever events or changesincircumstancesindicatethat the carrying amount may not berecoverable.Animpairmentlossisrecognisedfortheamountby which the asset’s carrying amountexceedsitsrecoverableamount.Therecoverableamountis the higher of an asset’s fair value lesscostsofdisposalandvalueinuse.Forthepurposesofassessingimpairment,assetsaregroupedat the lowest levels for which therearelargelyindependentcashinflows(cash-generatingunits).Priorimpairmentsofnon-financialassets(otherthangoodwill)arereviewedforpossiblereversalateachreportingdate.

Financial assetsClassificationTheCompanyclassifiesitsfinancialassetsinthecategory‘Loansandreceivables’.Theclassificationdependsonthepurposeforwhichthefinancialassetswereacquired.Managementdeterminestheclassificationofitsfinancialassetsatinitialrecognition.

Loans and receivablesLoansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Theyareincludedincurrentassets,exceptfor maturities greater than 12 monthsafterthereportingdate.Theseareclassifiedasnon-currentassets.TheCompany’sloansandreceivablescomprise‘otherlong-termassets’,‘tradeandotherreceivables’,and‘cashandcashequivalents’ in the statement of financialposition.

Recognition and measurementRegularpurchasesandsalesoffinancialassetsarerecognisedonthetradedate,whichisthedateon which the Company commits topurchaseorselltheasset.Financialassetsarederecognisedwhen the rights to receive cash flowsfromtheinvestmentshaveexpiredorhavebeentransferredandtheCompanyhastransferredsubstantiallyallrisksandrewardsofownership.Loansandreceivablesaresubsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.

Offsetting financial instrumentsFinancialassetsandliabilitiesareoffsetandthenetamountreportedinthestatementoffinancialpositionwhenthereisalegally enforceable right to offset therecognisedamountsandthereis an intention to settle on a net basisorrealisetheassetandsettletheliabilitysimultaneously.

Impairment of financial assetsAssets carried at amortised costTheCompanyassessesattheendofeachreportingperiodwhetherthereisobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpaired.Afinancialassetoragroupoffinancialassetsisimpairedandimpairmentlossesareincurredonlyifthereisobjectiveevidenceofimpairmentasaresult of one or more events that occurredaftertheinitialrecognitionoftheasset(a‘lossevent’)andthatlossevent(orevents)hasanimpactontheestimatedfuturecashflowsofthefinancialassetorgroupoffinancialassetsthatcanbereliablyestimated.

Evidenceofimpairmentmayincludeindicationsthatthedebtorsoragroupofdebtorsisexperiencingsignificantfinancialdifficulty,defaultordelinquencyin interest or principal payments, the probability that they will enter bankruptcyorotherfinancialreorganisation,andwhereobservabledataindicatethatthereisameasurabledecreaseintheestimatedfuturecashflows,suchaschangesinarrearsoreconomicconditionsthatcorrelatewithdefaults.

Forloansandreceivablescategory, the amount of the loss ismeasuredasthedifferencebetween the asset’s carrying amountandthepresentvalueofestimatedfuturecashflows(excludingfuturecreditlossesthathavenotbeenincurred)discountedatthefinancialasset’s

originaleffectiveinterestrate.Thecarrying amount of the asset is reducedandtheamountofthelossisrecognisedintheincomestatement.Ifaloanhasavariableinterestrate,thediscountrateformeasuring any impairment loss is the current effective interest ratedeterminedunderthecontract.Asapracticalexpedient,the Company may measure impairment on the basis of an instrument’s fair value using an observablemarketprice.

If,inasubsequentperiod,theamount of the impairment loss decreasesandthedecreasecanberelatedobjectivelytoaneventoccurring after the impairment wasrecognised(suchasanimprovementinthedebtor’screditrating),thereversalofthepreviouslyrecognisedimpairmentlossisrecognisedintheincomestatement.

InventoriesInventoriesarestatedatthelowerofcostandnetrealisablevalue.Costisdeterminedusingthefirst-in,first-out(FIFO)method.Costcomprisesdirectcostsonly.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseof business, less the costs of completionandapplicablevariablesellingexpenses.

Spares,accessoriesandsuppliesincludedunderinventoriesconsistofitemswhichareregularlyusedforrepairs,maintenanceandnewinstallations.Theyarestatedatthelowerofcostandnetrealisablevalue.

Trade receivablesTradereceivablesareamountsduefromcustomersforgoodssoldintheordinarycourseofbusiness.Ifcollectionisexpectedinoneyearorless(orinthenormal operating cycle of the businessiflonger),theyareclassifiedascurrentassets.Ifnot,theyarepresentedasnon-currentassets.Tradereceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.Aprovisionforimpairmentoftradeandotherreceivablesisestablishedwhenthereisobjectiveevidencethat the Company will not be abletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisation,anddefaultordelinquencyinpayments(morethan90daysoverdue)areconsideredindicatorsthatthereceivableisimpaired.Theamountoftheprovisionisthedifferencebetween the asset’s carrying amountanditsrecoverableamount, being the present value ofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.Thecarryingamountoftheassetisreducedthroughthe use of an allowance account, andtheamountofthelossisrecognisedinthestatementofcomprehensiveincome.When

a receivable is uncollectible, it is written off against the allowance accountfortradeorotherreceivables.Subsequentrecoveriesof amounts previously written off arecreditedagainst‘administrativeexpenses’inthestatementofcomprehensiveincome.Baddebtsare written off in the year in which theyareidentified.

Cash and cash equivalentsInthestatementofcashflows,cashandcashequivalentsincludescashinhand,depositsheldatcallwithbanks,othershort-termhighlyliquidinvestmentswithoriginalmaturities of three months or lessandbankoverdrafts.Bankoverdraftsareshownseparatelyonthestatementoffinancialposition.

Share capitalOrdinarysharesareclassifiedas“ShareCapital”inequity.Where any group company purchases the Company’s equity sharecapital(treasuryshares),theconsiderationpaid,includinganydirectlyattributableincrementalcostsisdeductedfromequityattributable to the Company’s equityholdersuntilthesharesarecancelledorreissued.Wheresuchordinarysharesaresubsequentlyreissued,anyconsiderationreceived,netofanydirectlyattributable incremental transaction costsisincludedinequity.

Trade payablesTradepayablesareobligationstopayforgoodsorservicesthathavebeenacquiredintheordinarycourseofbusinessfrom



suppliers.Accountspayableareclassifiedascurrentliabilitiesifpaymentisduewithinoneyearorless(orinthenormaloperatingcycleofthebusinessiflonger).Ifnot,theyarepresentedasnon-currentliabilities.

Tradepayablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.

Accounting for leasesLeasesinwhichasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleasesarechargedto the income statement on a straight-linebasisovertheperiodofthelease.

TheCompanyleaseslandunderoperatingleases.Upfrontleasepaymentsarecarriedforwardasprepaidoperatingleasesundernon-currentassetsandareamortisedsoastorecorda constant annual charge to the profitorlossovertheleaseperiod.Otherpaymentsmadeunderoperatingleasesarechargedtotheprofitorlossonastraightlinebasisovertheperiodofthelease.

When an operating lease is terminatedbeforetheleaseperiodhasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedas

anexpenseintheperiodinwhichterminationtakesplace.

Leasesofproperty,plantandequipment, where the Company hassubstantiallyalltherisksandrewardsofownership,areclassifiedasfinanceleases.Financeleasesarecapitalisedatthelease’scommencement at the lower ofthefairvalueoftheleasedpropertyandthepresentvalueoftheminimumleasepayment.

Eachleasepaymentisallocatedbetweentheliabilityandfinancecharges.Thecorrespondingrentalobligations,netoffinancecharges,areincludedintradeandotherpayables.Theinterestelementofthefinancecostischargedtothe income statement over the leaseperiodsoastoproduceaconstantperiodicrateofintereston the remaining balance of theliabilityforeachperiod.Theproperty,plantandequipmentacquiredunderfinanceleasesisdepreciatedovertheshorteroftheusefullifeoftheassetandtheleaseterm.

Investment in joint venturesTheCompanyhasappliedIFRS11toalljointarrangements.UnderIFRS11,investmentsinjointarrangementsareclassifiedaseitherjointoperationsorjointventuresdependingonthecontractualrightsandobligationsofeachinvestor.TheCompanyhasassessedthenatureofitsjointarrangementsanddeterminedthemtobejointventures.Joint

venturesareaccountedforusingtheequitymethod.

Undertheequitymethodofaccounting,interestsinjointventuresareinitiallyrecognisedatcostandadjustedthereaftertorecognise the Company’s share ofthepost-acquisitionprofitsorlossesandmovementsinprofitorloss.WhentheCompany’sshareoflossesinajointventureequalsorexceedsitsinterestsinthejointventures(whichincludesanylong-term interests that, in substance, form part of the Company’s net investmentinthejointventures),theCompanydoesnotrecognisefurther losses, unless it has incurredobligationsormadepaymentsonbehalfofthejointventures.

Current and deferred income taxThetaxexpensefortheperiodcomprisescurrent,deferredincometaxandCorporateSocialResponsibilitycontribution.Taxisrecognisedintheincomestatement,excepttotheextentthatitrelatestoitemsrecognisedin other comprehensive income ordirectlyinequity.Inthiscase,thetaxisalsorecognisedinothercomprehensiveincomeordirectlyinequity,respectively.

Thecurrentincometaxchargeiscalculatedonthebasisofthetaxlawsenactedorsubstantivelyenactedatthereportingdate.Managementperiodicallyevaluatespositionstakenintaxreturnswithrespect to situations in which

applicabletaxregulationissubjecttointerpretation.Itestablishesprovisions where appropriate on thebasisofamountsexpectedtobepaidtothetaxauthorities.

Deferredincometaxisrecognisedontemporarydifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsinthefinancialstatements.However,deferredtaxliabilitiesarenotrecognisediftheyarise from the initial recognition of goodwill;deferredincometaxisnotaccountedforifitarisesfrominitial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neitheraccountingnortaxableprofitorloss.Deferredincometaxisdeterminedusingtaxrates(andlaws)thathavebeenenactedorsubstantivelyenactedbythebalancesheetdateandareexpectedtoapplywhentherelateddeferredincometaxassetisrealisedorthedeferredincometaxliabilityissettled.

Deferredincometaxassetsarerecognisedonlytotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.

Deferredincometaxisprovidedontemporarydifferencesarisingfromdepreciationonplantandequipment,provisionforimpairmentofreceivablesandretirementbenefitobligations,

exceptfordeferredincometaxliabilitywherethetimingofthe reversal of the temporary differenceiscontrolledbytheCompanyanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

Deferredincometaxassetsandliabilities are offset when there is a legally enforceable right to offsetcurrenttaxassetsagainstcurrenttaxliabilitiesandwhenthedeferredincometaxesassetsandliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswherethereisanintention to settle the balances on anetbasis.

Employee benefitsl PensionandretirementplansTheCompanyhasbothadefinedbenefitpensionplanandadefinedcontributionpensionplan.

Adefinedbenefitplanisapensionplanthatdefinesanamountofpensionbenefitthatanemployeewill receive on retirement, usually dependentononeormorefactors such as age, years of serviceandcompensation.TheplanisfundedbythepaymentsfromtheCompanytakingaccountoftherecommendationsofindependentqualifiedactuaries.

Theliabilityrecognisedinthestatementoffinancialpositioninrespectofdefinedbenefitpensionplans is the present value of the

definedbenefitobligationattheendofthereportingperiodlessthefairvalueofplanassets.Thedefinedbenefitobligationiscalculatedannuallybyindependentactuariesusingtheprojectedunitcreditmethod.Thepresentvalueofthedefinedbenefitobligationisdeterminedbydiscountingtheestimatedfuturecashoutflowsusinginterestratesofhigh-qualitycorporatebondsthataredenominatedinthecurrencyinwhichthebenefitswillbepaid,andthathavetermstomaturityapproximatingtothetermsoftherelatedpensionobligation.Incountrieswherethereisnodeepmarketinsuchbonds,themarketratesongovernmentbondsareused.Theactuariescarryoutafullvaluation of the plan every three/fouryears(thelatestfullvaluationwasdoneinJanuary2015)andthenextfullvaluationisduein2015.Actuarialgainsandlossesarisingfromexperienceadjustmentsandchanges in actuarial assumptions arechargedorcreditedtoequityin other comprehensive income in theperiodinwhichtheyarise.

Past-servicecostsarerecognisedimmediatelyintheincomestatement.

AdefinedcontributionplanisapensionplanunderwhichtheCompanypaysfixedcontributions into a separate entity.TheCompanyhasnolegalor constructive obligations to pay furthercontributionsifthefund



doesnotholdsufficientassetstopayallemployeesthebenefitsrelating to employee service in the currentandpriorperiods.Adefinedbenefitplanisapensionplanthatisnotadefinedcontributionplan.

Fordefinedcontributionplans,theCompany pays contributions to publiclyorprivatelyadministeredpension insurance plans on amandatory,contractualorvoluntarybasis.TheCompanyhasno further payment obligations once the contributions have beenpaid.Thecontributionsarerecognisedasemployeebenefitexpensewhentheyaredue.Prepaidcontributionsarerecognisedasanassettotheextentthatacashrefundorareductioninthefuturepaymentsisavailable.

l OtherbenefitsEmployeeentitlementtoannualleaveandotherbenefitsarerecognisedwhentheyaccruetotheemployees.

l TerminationbenefitsTerminationbenefitsarepayablewhenemploymentisterminatedby the Company before the normalretirementdate,orwhenever an employee accepts voluntaryredundancyinexchangeforthesebenefits.TheCompanyrecognisesterminationbenefitsat the earlier of the following dates:(a)whentheCompanycannolongerwithdrawtheofferofthosebenefits;and(b)when

the entity recognises costs for a restructuring that is within the scopeofIAS37andinvolvesthepaymentofterminationbenefits.Inthecaseofanoffermadetoencouragevoluntaryredundancy,theterminationbenefitsaremeasuredbasedonthenumberofemployeesexpectedtoaccepttheoffer.Benefitsfallingduemore than 12 months after the endofthereportingperiodarediscountedtotheirpresentvalue.

Deposits on LPG cylindersDepositsonLPGcylindersareaccountedforaspartofcurrentliabilitiesandarerecognisedathistoricalcostinthefinancialstatements.

ProvisionsProvisionsforenvironmentalrestoration,restructuringcostsandlegalclaimsarerecognisedwhen:the Company has a present legal or constructive obligation as a resultofpastevents;itisprobablethatanoutflowofresourceswillberequiredtosettletheobligation,andtheamounthasbeenreliablyestimated.Provisionsarenotrecognisedforfutureoperatinglosses.

Where there are a number of similarobligations,thelikelihoodthatanoutflowwillberequiredinsettlementisdeterminedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthelikelihoodofanoutflowwithrespecttoanyoneitemincludedinthesameclassofobligationsmaybesmall.

Provisionsaremeasuredatthepresentvalueoftheexpendituresexpectedtoberequiredtosettletheobligationusingapre-taxratethatreflectscurrentmarketassessments of the time value of moneyandtherisksspecifictotheobligation.Theincreaseintheprovisionduetopassageoftimeisrecognisedasinterestexpense.

Revenue recognitionRevenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable,andrepresentsamountsreceivableforgoodssupplied,statednetofdiscounts,returnsandvalueaddedtaxes.TheCompanyrecognisesrevenuewhen the amount of revenue can bereliablymeasured;whenitisprobable that future economic benefitswillflowtotheentity;andwhenspecificcriteriahavebeenmet for each of the Company’s activities,asdescribedbelow.

Sale of goodsSalesarerecognisedupondeliveryofproductsandcustomeracceptance,ifany,netoftradediscountsandvalueaddedtax.

Dividend incomeDividendincomeisrecognisedwhen the right to receive payment isestablished.

Interest incomeInterestincomeisrecognisedusingtheeffectiveinterestmethod.Whenaloanandreceivableisimpaired,theCompanyreducesthecarryingamountto

its recoverable amount, being theestimatedfuturecashflowdiscountedattheoriginaleffectiveinterest rate of the instrument, andcontinuesunwindingthediscountasinterestincome.

Dividend distributionsDividenddistributionstotheCompany’sshareholdersarerecognisedasaliabilityintheCompany’sfinancialstatementsintheyearinwhichthedividendsareapprovedbytheCompany’sshareholders.

3 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexperienceoffutureeventsthatarebelievedtobereasonableunderthecircumstances.

Critical accounting estimates and assumptionsTheCompanymakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldomequaltherelatedactualresults.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothe carrying amounts of assets andliabilitieswithinthenextfinancialyearareaddressedbelow.

l PensionbenefitsThepresentvalueofthepension

obligationsdependsonanumberoffactorsthataredeterminedonan actuarial basis using a number ofassumptions.Theassumptionsusedindeterminingthenetcost(income)forpensionsincludethediscountrate.Anychangesintheseassumptions will impact the carrying amountofpensionobligations.

TheCompany’sactuarydeterminestheappropriatediscountrateattheendofeachyear in consultation with the managementoftheCompany.Thisistheinterestratethatshouldbeusedtodeterminethepresentvalueofestimatedfuturecashoutflowsexpectedtoberequiredtosettlethepensionobligations.Indeterminingtheappropriatediscountrate,theCompanyconsiderstheinterestratesofhigh-qualitycorporatebondsthataredenominatedinthecurrencyinwhichthebenefitswillbepaid,andthathavetermstomaturityapproximatingthetermsoftherelatedpensionliability.Otherkeyassumptionsforpensionobligationsarebasedinpartoncurrentmarketconditions.AdditionalinformationisdisclosedinNote21.

4 FINANCIAL RISK MANAGEMENT

Financial risk factorsTheCompany’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(includingforeignexchangerisk,priceriskandcashflowinterestraterisk),creditriskandliquidityrisk.

TheCompany’soverallriskmanagement programme focuses ontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsontheCompany’sfinancialperformance.

RiskmanagementremainswithintheresponsibilityoftheBoardofDirectorstowhomtheAuditandRiskcommitteereports.Theboardprovideswrittenprinciplesforoverallriskmanagement,aswell as written policies covering specificareas,suchascurrencyrisk,interestraterisk,creditrisk,andinvestmentofexcessliquidity.

(a) Market risk(i) Foreign exchange riskCurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecause of changes in foreign exchangerates.

TheCompanytransactswithinternationalcustomersandsuppliersandisexposedtocurrencyriskarisingfromvariouscurrencyexposures,primarilywithrespecttotheUnitedStatesdollar(‘USD’).Currencyriskarisesfromfuturecommercialtransactionsandrecognisedassetsandliabilities.ItistheCompany’spolicy not to enter into any currency hedgingtransactions.Tomanageitsforeignexchangeriskarisingfromfuture commercial transactions andrecognisedassetsandliabilities,theCompanymaintainssufficientliquidresourcesinfromitsUSDdenominatedreceiptstomeetitsUSDdenominatedobligationsastheyfalldue.



ThecurrencyprofileoftheCompany’sUSD-denominatedfinancialassetsandliabilitiesissummarisedasfollows:

At31December2015,iftheMauritianrupeehadweakened/strengthenedby10%(2014-5%)against the USD with all other variablesheldconstant,pre-taxprofitfortheyearwouldhavedecreased/increasedbyRs 14,782,100(2014-Rs6,104,500),mainly as a result of currency losses/gains on translation of USdollar-denominatedtradereceivablesandtradepayables.

Managementconsidersa10%shiftinforeigncurrencyexchangerateisappropriatetodeterminethesensitivityofUSDdenominatedfinancialassetsandliabilitiesvisavistheMauritianrupee.

(ii) Price riskPriceriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketpricesofequity(otherthanthosearisingfrominterestrateriskorcurrencyrisk).

TheCompanyisnotexposedtoequitypriceriskasitdoesnothave

anyinvestmentinequitysecurities.TheCompanyisexposedtocommoditypriceriskonnon-regulatedproducts.Tomanageitsrisk,theCompanykeepsitsinventorylevelfornon-regulatedproductstothestrictminimum.Splitpricingisalsousedasamitigationmeasure.At31December2015,ifthepriceofunregulatedproductshadincreased/decreasedby5%(2014-5%)withallothervariablesheldconstant,pre-taxprofitfortheyearwouldhaveincreased/decreasedbyRs17,769,600(2014-Rs19,699,339). TheCompanyisnotexposedtocommoditypriceriskonregulatedproductssincetheirmarginsarefixedbyTheStateTradingCorporation.

(iii) Cash flow and fair value interest rate riskCashflowinterestrateriskarisesfrom the possibility that changes in interest rates will affect future cashflowsorthefairvaluesoftheassets.TheCompany’sinterest

rateriskarisesfromcashandcashequivalentsandshort-termbankoverdraftswhichbearinterestatvariablerates.TheCompanydoesnothavelong-termborrowings.TheCompanymitigatesthisriskbyholdingenoughcashresourcesthat in turn earn variable interest ratesandinvestsinfinancialinstitutions where it can earn the highestratesofinterest.

Basedonthesimulationsperformed,theimpactonpre-taxprofitofa25basispoint(2014-25basispoint)increase/decreasein interest rate on borrowings wouldbeamaximumdecrease/increase of Rs 247,338(2014-Rs1,041,423),respectivelybasedontheinterestbearingbankoverdraftstheCompanyhadat31December.

Managementconsidersthata25basis point shift in interest rate is reasonable as the repo rate has fluctuatedby25basispointsin2015(nofluctuationin2014).

(b) Credit riskCreditriskreferstotheriskthatacounter-partywilldefaultonitscontractual obligations resulting in financiallosstotheCompany.

CreditriskarisingfromtradereceivablesismanagedattheCompanylevel.Creditriskarisesfromcreditexposurestowholesaleandretailcustomers,includingoutstandingreceivablesandcommittedtransactions.Thecreditcontroldepartment

assessesthecreditqualityofthecustomer,takingintoaccountitsfinancialposition,pastexperienceandotherfactors.Individualrisklimitsaresetbasedoninternalratingsinaccordancewithlimitssetbytheboard.Theutilisationofcreditlimitsisregularlymonitored.

Incaseswherecreditlimitswereexceededduringtheyear,thiswasdoneinaccordancewiththeCompany’sproceduresandmanagementdoesnotexpectanymajorlossesfromnon-performancebythesecounterparties.Intheeventofdefaultofcustomers,whorequiretimelydeliveryofpetroleumproducts,LPG&Lubricantstoruntheir operations, the Company reservestherighttostopdeliveryoftheseproductsuntiltheoutstandingdebtisrecovered.Creditriskarisingoncashandcashequivalentsisconsideredtobeminimalastheseareplacedwithreputablefinancialinstitutions.

Creditriskarisingonotherlong-term assets, consisting mainly of loantodealers,isconsideredto be minimal since repayment oftheloansisdoneprincipallythroughdiscountprovidedbytheCompanytothedealers.

(c) Liquidity riskPrudentliquidityriskmanagementimpliesmaintainingsufficientcash,theavailabilityoffundingthroughanadequateamountofcommittedcreditfacilitiesandtheabilitytocloseoutmarketpositions.Duetothedynamic

natureoftheunderlyingbusinesses,companytreasurymaintainsflexibilityinfundingbymaintainingavailabilityofliquidresourcesundercommittedcreditlines.

AlloftheCompany’sfinancialliabilities,whichincludestradeandotherpayables,depositonLPGcylindersandbankoverdraftsarepayablewithin12monthsandtheamountsrecognisedinthestatementoffinancialpositionof Rs 1,617,025,000(2014:Rs2,051,055,000)areapproximatelyequal to the contractual undiscountedcashflows.Allbalancesduewithin12monthsequaltheircarrying amounts, as the impact of discountingisnotsignificant.

TheCompanyadoptsprudentliquidityriskmanagementbymaintainingsufficientcashandcash equivalents to meet its normaloperatingcommitments.

Capital risk managementTheCompany’sobjectiveswhenmanagingcapitalaretosafeguardthe Company’s ability to continue asagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.

ThecapitaloftheCompanyconsistsofequityandretainedearnings.TheCompanydoesnothaveanydebt,otherthanshort-termbankoverdrafts.Inordertomaintainoradjustthecapital

Financial Financial Financial Financial assets liabilities assets liabilities 2015 2015 2014 2014 Rs’000 Rs’000 Rs’000 Rs’000

UnitedStatesDollar 192,493 340,314 362,106 484,196

Vivo Energy Mauritius Limited Annual Report 2015 83

Notes to the Financial Statements - 31 December 2015 (continued)

Vivo Energy Mauritius Limited Annual Report 201582


structure, the Company may adjusttheamountofdividendspaidtoshareholders.

Therearenoexternalcapitalrequirements.

Fair value estimationThecarryingvalueoftradeandotherreceivables,cashandcashequivalents,bankoverdrafts,tradeandotherpayablesanddepositsonLPGcylindersareassumedtoapproximatetheirfairvaluesduetotheirshorttermmaturities.

Offsetting financial assets and liabilitiesTherewerenofinancialassetandfinancialliabilitiesthatweresubjecttooffsettingat31December2015.

5 SEGMENT INFORMATION

Thedisclosureonsegmentreportinghaschangedin2015.Thedirectorsareoftheopinionthat the segment information presentedbelowgivesabetterreflectionofhowtheydecidetoallocateresourcesastheyconsiderthatthemainconsiderationindeterminingtheirstrategydependson whether they can control or notthepriceandmarginoftheirproducts.Hence,thedirectors

believe it is more appropriate that thedisclosureonsegmentanalysisbeseparatedbetweenregulatedandnon-regulated.

TheoperationsofthejointventurescompriseofLPGterminalusagefacilities.merRouge Oil Storage terminal Co.Ltdhasnotyetstarteditsoperations.

Therearenosalesbetweenthedifferentsegments.Revenuefromnosinglecustomeramountedto10%ormoreoftheCompany’stotalrevenue.Unallocatedcostsrepresentnetexpensesthatdonotdirectlyrelatetoasegment.Segment assets consist primarily ofproperty,plantandequipment,prepaidoperatingleases,otherlong-termassets,inventories,tradeandotherreceivablesandprepayments,investmentinjointventures,andexcludecashandcashequivalents.Segment liabilities comprise operatingliabilitiesandexcludeitemssuchastaxation.Capitalexpenditurecomprisesadditionstoproperty,plantandequipment.

5 Segment information (Continued)

Year ended 31 December 2015 Regulated Non-Regulated Total Rs’000 Rs’000 Rs’000

Revenue from external customers 6,350,725 3,788,812 10,139,537

Segment results 167,936 278,517 446,453Unallocatedcosts ( 111,019)

Operatingprofit 335,434Finance income 1,867Finance cost ( 8,097)Shareofprofitsofjointventure ( 7) 10,601 10,594

Profitbeforeincometax 339,798Incometaxexpense ( 57,171)

Profitfortheyear 282,627

Segment assets 1,132,489 809,045 1,941,534Joint venture 16,633 29,769 46,402Unallocatedassets 510,453

Totalassets 2,498,389

Segment liabilities 797,744 614,792 1,412,536Unallocatedliabilities 360,713

Totalliabilities 1,773,249

Other segment itemsCapitalexpenditure 202,148 28,317 230,465Depreciation ( 62,801) ( 29,557) ( 92,358)Amortisation ( 451) - ( 451)

UnallocateditemsCapitalexpenditure 33,477Amortisation (106)Depreciation ( 11,705)

Theamountsprovidedtothechiefoperatingdecision-makerwithrespecttothetotalassetsandtotalliabilitiesaremeasuredinamannerconsistentwiththatofthefinancialstatements.

Theassetsandliabilitiesareallocatedbasedontheoperationsofthesegments.



5 Segment information (Continued)Year ended 31 December 2015 (Continued)SegmentassetsandliabilitiesarereconciledtotheCompany’sassetsandliabilitiesasfollows: Assets Liabilities Rs’000 Rs’000

Segmentassets/liabilitiesandinterestinjointventures 1,987,936 1,412,536Unallocated:Property,plantandequipment 237,095Valueaddedtaxrecoverable 19,046Otherreceivablesandprepayments 186,648Cashandcashequivalents 67,664Retirementbenefitobligations 53,426Deferredincometaxliabilities 68,701Bankoverdrafts 98,935Other payables 105,554Currentincometaxliabilities 34,097

Total 2,498,389 1,773,249

Year ended 31 December 2014 Regulated Non-Regulated Total Rs’000 Rs’000 Rs’000

Revenuefromexternalcustomers 7,062,978 5,721,122 12,784,100

Segmentresults 155,171 158,064 313,235Unallocatedcosts ( 131,553)

Operatingprofit 181,682Financeincome 677Financecost ( 9,540)Shareofprofitsofjointventure ( 360) 11,039 10,679

Profitbeforeincometax 183,498Incometaxexpense ( 29,167)

Profitfortheyear 154,331

Segmentassets 1,031,291 1,067,149 2,098,440Jointventure 16,640 19,167 35,807Unallocatedassets 567,685

Totalassets 2,701,932

Segmentliabilities 810,008 693,730 1,503,738Unallocatedliabilities 689,656

Totalliabilities 2,193,394

Other segment itemsCapitalexpenditure 104,143 44,338 148,481Depreciation ( 53,403) ( 26,033) ( 79,436)Amortisation ( 68) - ( 68)UnallocateditemsCapitalexpenditure 28,887Amortisation -Depreciation ( 11,132)

Theamountsprovidedtothechiefoperatingdecision-makerwithrespecttothetotalassetsandtotalliabilitiesaremeasuredinamannerconsistent withthatofthefinancialstatements.

Theassetsandliabilitiesareallocatedbasedontheoperationsofthesegments.

5 Segment information (Continued)



5 Segment information (Continued)Year ended 31 December 2014 (Continued)

SegmentassetsandliabilitiesarereconciledtotheCompany’sassetsandliabilitiesasfollows:

6 Other Income

Assets Liabilities Rs’000 Rs’000

Segmentassets/liabilitiesandinterestinjointventures 2,134,247 1,503,738Unallocated:Property,plantandequipment 218,361Valueaddedtaxrecoverable 22,832Otherreceivablesandprepayments 266,915Cashandcashequivalents 55,990Currentincometaxasset 3,587Retirementbenefitobligations 81,723Deferredincometaxliabilities 60,616Bankoverdrafts 416,569Otherpayables 130,748

Total 2,701,932 2,193,394

2015 2014 Rs’000 Rs’000

Rental income 15,959 12,609Management fees 4,624 4,046Profitondisposalofproperty,plantandequipment 65 131Fuel storage fee 29,036 22,678Throughputfee 10,077 8,841Tankerdischargefee 1,075 1,123Non-fuelretailingincome 2,349 604Other customer fees 5,847 5,463Others 7,722 5,445

76,754 60,940

7 Operating ProfitThefollowingitemshavebeen(credited)/chargedinarrivingatoperatingprofit:

8 Finance (Costs)/Income – net

2015 2014 Rs’000 Rs’000

(Profit)/lossondisposalofproperty,plantandequipment ( 65) ( 131)Depreciationonproperty,plantandequipment(Note12)-includedincostofsales 89,156 77,522-includedinadministrativeexpenses 14,907 13,046Amortisationofintangibleassets(Note13) 106 -Amortisationofprepaidoperatingleases(Note14) 451 68Feespaidtoauditor-auditservices 1,800 1,750-auditrelatedservices 882 850Operatingleasechargesonlandandbuildings 7,172 6,126Operating lease charges on motor vehicles 4,974 6,133Operatingleasechargesonvehiclesfordistributionpurposes 39,204 42,694Repairsandmaintenance:-includedincostofsales 3,474 2,780-includedinadministrativeexpenses 20,138 23,185Staffcosts(Note11)-includedincostofsales 15,313 12,184-includedinadministrativeexpenses 166,945 160,694-includedinfinancecosts 4,663 -Provisionforimpairmentofreceivables(Note18) 11,224 3,715Costofinventoriesrecognisedasexpense-includedincostofsales 9,147,955 11,930,662

2015 2014 Rs’000 Rs’000

Financecosts:Interestexpense ( 3,434) ( 9,540)Accretiononretirementbenefit ( 4,663) -

( 8,097) ( 9,540)

Financeincome: Interest income 1,867 677

1,867 677

Netfinancecosts: ( 6,230) ( 8,863)



9 Income Tax Expense

2015 2014 Rs’000 Rs’000

Charge for the year

Basedontheprofitfortheyear,asadjustedfortaxpurposes,at17%(2014-17%) 53,255 20,142(Over)/under-provisionofincometaxinpreviousyear ( 275) 2,557Under/(over)-provisionofdeferredtaxinpreviousyear 11 ( 2,873)Deferredincometax(Note20) 4,180 9,341

Charge to income statement 57,171 29,167

2015 2014 Rs’000 Rs’000

Current income tax (asset)/liabilities

At01January ( 3,587) 5,625Charge for the year 52,980 22,699Paidduringtheyear,basedon-Previousyear’sprofit - ( 4,390)-Currentyear’sprofitandCSR ( 15,296) ( 27,521)

At 31 December 34,097 ( 3,587)

AreconciliationbetweentheeffectiverateofincometaxoftheCompanyof16.82%(2014–15.89%)andtheapplicableincometaxrateof17%(2014-17%)follows:

(Asapercentageofprofitbeforetaxation)

2015 2014 % %

Applicableincometaxrate 17.00 17.00Impactof:Depreciationonnon-qualifyingassets 0.02 0.01Othernon-allowableexpenses 0.37 0.77Shareofprofitofjointventure ( 0.53) ( 0.99)Othernon-taxableincome ( 0.42) ( 0.72)CSR/TDS 0.46 -(Over)/under-provisionofincometaxinpreviousyear ( 0.08) 1.39Under/(over)-provisionofdeferredtaxinpreviousyear - ( 1.57)

Effectiveincometaxrate 16.82 15.89

2015 2014 Rs’000 Rs’000

Wagesandsalaries 138,031 131,776Social security costs 1,853 1,691Pensioncosts–definedbenefitplan 6,638 20,110Pensioncosts–definedcontributionplan 14,062 -Otherbenefits 43,258 36,884Terminationbenefits - 45Rechargeofcoststorelatedcompanies ( 16,921) ( 17,628)

186,921 172,878

2015 2014 Number Number

Numberofemployeesatyearend 126 124

Directors’emolumentsincludedinstaffcostsareasfollows:

2015 2014 Rs’000 Rs’000

Short-termbenefits 18,914 18,807Post-employmentbenefits 2,591 1,816

21,505 20,623

Therechargeofcostsisinrespectof10(2014-12)centralstaffbasedinMauritiuswhosecostsareincurredbytheCompanyandrechargedtoVEIBV(VivoEnergyInvestmentBV).

10 Earnings per ShareThecalculationofearningspershareisbasedontheCompany’sprofitfortheyearofRs 282,627,000(2014-Rs154,331,000)andon29,322,252ordinarysharesinissueduringthetwoyearsended31December2015and31December2014.Therewerenopotentiallydilutivesharesoutstandingat31December2015or2014.Dilutedearningspersharearethereforethesameasbasicearningspershare.

11 Staff Costs



12 Property, plant and equipment

Bu

ildin

gs

Ca

pita

l

Free

hold

on

lea

seho

ld

Plan

t an

d

Co

mpu

ter

Furn

itur

e an

d ex

pend

itur

e

Free

hold

lan

d bu

ildin

gs

la

nd

equi

pmen

t M

otor

veh

icle

s eq

uipm

ent

fit

ting

s in

pro

gres

s

Tota

l

Rs

’000

Rs

’000

Rs’0

00

Rs

’000

Rs’0

00

Rs

’000

Rs’0

00

Rs

’000

Rs’0

00

Cost

:At01January2014

90,984

177,163

117,782

1,185,224

2,886

25,266

20,034

27,221

1,646,560

Additions

-

16,342

7,723

135,420

-

1,186

1

16,696

177,368

Assetscapitalised

-

3,126

130

17,899

-

-

-

(21,155)

-

Writeoffs/adjustments

-

-

-

(14)

14

-

-

-

-

Disposals

-

(345)

-

(6,834)

(931)

-

(85)

-

(8,195)

At31December2014

90,984

196,286

125,635

1,331,695

1,969

26,452

19,950

22,762

1,815,733

Additions

-

65,729

1,455

105,528

486

1,971

-

76,651

251,820

Assetscapitalised

-

2,056

-

9,091

192

5,032

-

(16,371)

-

Writeoffs/adjustments

-

-

-

-

-

-

-

(318)

(318)

Disposals

-

-

-

(16,695)

-

-

-

-

(16,695)

At31December2015

90

,984

264,

071

12

7,09

0 1,

429,

619

2,

647

33

,455

19,9

50

82

,724

2,

050,

540

Accu

mul

ated

dep

reci

atio

n:At01January2014

-

68,409

65,353

650,564

2,265

24,243

13,769

-

824,603

Chargefortheyear

-

8,196

5,934

74,227

149

455

1,607

-

90,568

Disposals

-

(299)

-

(6,834)

(931)

-

(56)

-

(8,120)

At31December2014

-

76,306

71,287

717,957

1,483

24,698

15,320

-

907,051

Chargefortheyear

-

9,619

6,384

85,253

185

1,017

1,605

-

104,063

Disposals

-

-

-

(16,692)

-

-

-

-

(16,692)

At31December2015

-

85

,925

77,6

71

78

6,51

8

1,66

8

25,7

15

16

,925

-

994,

422

Net

boo

k am

ount

:At31December2015

90

,984

178,

146

49

,419

64

3,10

1

979

7,

740

3,

025

82

,724

1,

056,

118

At31December2014

90,984

119,980

54,348

613,738

486

1,754

4,630

22,762

908,682

IncludedincapitalexpenditureinprogressareplantandequipmentamountingtoR

s 82

,723

,516(2014-Rs22,762,030)inthecourseofconstruction.

13 Intangible Assets

Computer software Rs’000

Cost:At01January2014 2,515Disposals -

At31December2014 2,515Additions 1,912Assetscapitalised 318Disposals -

At31December2015 4,745

Accumulated amortisation:At01January2014 2,515Disposals -

At31December2014 2,515Chargefortheyear 106Disposals -


Net book amount:At31December2015 2,124At31December2014 -

14 Prepaid Operating Leases

Rs’000

Cost:At01January2014and31December2014 1,473Additions 10,209Disposals -


Amortisation:At01January2014 801Charge for the year 68

At31December2014 869Charge for the year 451


Net book amount:At31December2015 10,362At31December2014 604

Operatingleasesrepresentupfrontleasepaymentsoncertainleaseofland.



15 Other Long-Term Assets

16 Investment in Joint Ventures

2015 2014 Rs’000 Rs’000 0

Loans to Dealers 6,524 11,425

6,524 11,425

LoanstoDealersrelatetoloanagreementsbetweentheCompanyandseveralretailersfortheconstructionofservicestations.

ESCOL MOST TOTAL 2015 2014 2015 2014 2015 2014 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 Rs’000

Cost:At01January 15,000 15,000 17,000 - 32,000 15,000Investment in share capital - - - 17,000 - 17,000

At 31 December 15,000 15,000 17,000 17,000 32,000 32,000

Share of post-acquisition reserves:At01January 4,167 3,128 ( 360) - 3,807 3,128Shareofprofitafterincometax 10,602 11,039 ( 7) (360) 10,595 10,679Dividendsreceived - (10,000) - - - (10,000)Other comprehensive income - - - - - -

At 31 December 14,769 4,167 ( 367) (360) 14,402 3,807

Net book amount:At 31 December 29,769 19,167 16,633 16,640 46,402 35,807

Natureofinvestmentinjointventure2015and2014:

Name of entity Place of Activity Description % % incorporation/ of shares holding holding business held 2015 2014

EnergyStorageCo.Ltd Mauritius LPGstorage Ordinary 50.0 50.0MerRougeOilStorageTerminalCo.Ltd Mauritius Storageof Ordinary 25.0 25.0 petroleum products

EnergyStorageCompanyLimited(ESCOL)andMerRougeOilStorageTerminalCo.Ltd(MOST)areprivatecompaniesandtherearenoquotedmarketpricesavailablefortheirshares.TherearenocontingentliabilitiesandrestrictionsrelatingtotheCompany’sinterestinitsjointventures.

Summarised balance sheet ESCOL MOST As at 31 December As at 31 December 2015 2014 2015 2014 Rs’000 Rs’000 Rs’000 Rs’000

CurrentCashandcashequivalents 46,259 24,733 19,466 20,339Othercurrentassets(excludingcash) 6,324 5,195 311 264

Totalcurrentassets 52,583 29,928 19,777 20,603

Financialliabilities(excludingtradepayables) - - - -Othercurrentliabilities(includingtradepayables) ( 13,084) ( 2,217) - -

Totalcurrentliabilities ( 13,084) ( 2,217) - -

Non-currentAssets 32,375 33,710 10,755 9,958

Financial liabilities - - - -Other liabilities ( 22,337) ( 23,588) - -

Totalnon-currentliabilities ( 22,337) ( 23,588) - -

Net assets 49,537 37,833 30,532 30,561

Summarised statement of comprehensive income ESCOL MOST For the period ended 31 For the period ended 31 December December 2015 2014 2015 2014 Rs’000 Rs’000 Rs’000 Rs’000

Revenue 34,265 33,384 - -Depreciationandamortisation ( 2,385) ( 2,248) - -Interest income 713 728 2 14Interestexpense - - - -Pre-taxprofit/(loss)fromcontinuingoperations 26,149 25,995 - -Incometaxexpense ( 4,445) ( 4,419) - -Post-taxprofit/(loss)fromcontinuingoperations 21,704 21,576 ( 28) ( 1,439)Post-taxprofitfromdiscontinuedoperations - - - -Other comprehensive income - - - -Totalcomprehensiveincome 21,704 21,576 ( 28) ( 1,439)Dividendsreceivedfromjointventure - 10,000 - -

16 Investment in Joint Ventures (Continued)Summarisedfinancialinformationforjointventure:

SetoutbelowarethesummarisedfinancialinformationforEnergyStorageCo.LtdandMerRougeOilStorageTerminalCo.Ltd,whichareaccountedforusingtheequitymethod.



Summarised financial information ESCOL MOST 2015 2014 2015 2014 Rs’000 Rs’000 Rs’000 Rs’000

Opening net assets 1 January 37,833 36,257 30,561 -Investmentduringtheyear - - - 20,000Deposit on share capital - - - 12,000Profit/(loss)fortheperiod 21,704 21,576 ( 28) ( 1,439)Other comprehensive income - - - -Dividendpaid - ( 20,000) - -Dividendpayable ( 10,000) - - -Closing net assets 49,537 37,833 30,532 30,561Interestinjointventure@50%,25% 29,769 19,167 16,633 4,640Deposit on share capital - - - 12,000Goodwill - - - -Carrying value 29,769 19,167 16,633 16,640

16 Investment in Joint Ventures (Continued)Reconciliation of summarised financial information

Reconciliationofthesummarisedfinancialinformationpresentedtothecarryingamountofitsinterestinthejointventure: 2015 2014 Rs’000 Rs’000

Goodsforresale 608,603 650,360Spares,accessoriesandsupplies 10,490 16,591

619,093 666,951

18 Trade and Other Receivables

2015 2014 Rs’000 Rs’000

Tradereceivables 631,134 930,019Less:provisionforimpairmentofreceivables ( 25,253) ( 16,327)

Tradereceivables–net 605,881 913,692

Other receivables 21,382 27,894Less:provisionforimpairmentofotherreceivables ( 808) ( 1,139)

Other receivables – net 20,574 26,755

Tradereceivablesfromrelatedcompanies(Note28(vii)) 34,049 42,433Valueaddedtaxrecoverable 19,046 22,832Prepayments 10,552 13,174

63,647 78,439

690,102 1,018,886

Thecarryingamountofreceivablesandprepaymentsapproximatetheirfairvalues.

Tradereceivablesthatarelessthanthreemonthspastduearenotconsideredimpairedexceptwheremanagementidentifiesspecificinstanceswhereatradereceivablewouldbesubjecttoimpairment.Theageinganalysisoftradereceivablesthatarenotimpairedareasfollows:

2015 2014 Rs’000 Rs’000

Notpastdueandnotimpaired 635,154 923,96901–30days ( 5,628) 20,76231–90days 6,928 8,16591–365days 3,476 3,229

639,930 956,125

17 Inventories



Vivo Energy Mauritius Limited Annual Report 201596

18 Trade and Other Receivables (Continued)Asof31December2015,tradereceivablesofRs 25,253,000(2014-Rs16,327,000)wereimpaired.TheamountoftheprovisionwasRs 25,253,000asof31December2015(2014-Rs16,327,000).Theindividuallyimpairedreceivablesrelatetocustomers,whichareinunexpectedlydifficulteconomicsituations.Theageingofthesereceivablesisasfollows:

2015 2014 Rs’000 Rs’000

1to3months(grossreceivable) - 3,3361to3months(provisionforimpairment) - 3,3363to6months(grossreceivable) - 1283to6months(provisionforimpairment) - 128Over6months(grossreceivable) 25,253 12,863Over6months(provisionforimpairment) 25,253 12,863

ThecarryingamountsoftheCompany’stradeandotherreceivablesaredenominatedinthefollowingcurrencies:

2015 2014 Rs’000 Rs’000

CurrencyMauritian rupee 510,850 656,852UnitedStatesdollar 179,252 362,034

690,102 1,018,886

MovementsontheCompany’sprovisionforimpairmentoftradeandotherreceivablesareasfollows:

2015 2014 Rs’000 Rs’000

At01January 17,466 14,795Provisionforimpairmentoftradeandotherreceivables 11,224 3,715Receivableswrittenoffduringtheyearasuncollectible ( 2,629) ( 1,044)

At 31 December 26,061 17,466

Thecreationandreleaseofprovisionforimpairedreceivableshavebeenincludedin‘administrativeexpenses’inprofitorloss.Amountschargedtotheallowanceaccountaregenerallywrittenoff,whenthereisnoexpectationofrecoveringadditionalcash.

Themaximumexposuretocreditriskatthereportingdateisthefairvalueofeachclassofreceivable.At31December2015,theCompanyheldbankguaranteesassecurityonreceivablesamountingtoRs 28,120,000(2014-Rs28,970,000).

2015 2014 2015 2014 Number Number Rs’000 Rs’000

Authorised, Issued and fully paid:OrdinarysharesofNilparvalue 29,322,252 29,322,252 293,223 293,223

20 Deferred Income Tax LiabilitiesThegrossmovementonthedeferredincometaxaccountisasfollows:

2015 2014 Rs’000 Rs’000

At01January 60,616 49,466Under/(over)-provisionofdeferredtaxinprioryear 11 ( 2,873)Deferredtaxliabilityonremeasurementsofpostemploymentbenefitobligationschargedtoothercomprehensiveincome 3,894 4,682Chargefortheyear(Note9) 4,180 9,341

At 31 December 68,701 60,616

Deferredincometaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilitiesandwhenthedeferredincometaxesrelatetothesamefiscalauthority.

Themovementsindeferredincometaxassetsandliabilitiesduringtheyearareshownbelow:

Provision for Provision for Retirement Capital tax impairment of slow-moving benefit allowances receivables inventory obligations Total Rs’000 Rs’000 Rs’000 Rs’000 Rs’000 At01January2014 70,403 ( 2,515) - ( 18,422) 49,466Chargetoothercomprehensiveincome - - - 4,682 4,682Over-provisionofdeferredtaxinprioryear ( 2,873) - - - ( 2,873)Charge/(credit)fortheyeartoincomestatement 9,948 ( 454) - ( 153) 9,341

At31December2014 77,478 ( 2,969) - ( 13,893) 60,616Charge to other comprehensive income - - - 3,894 3,894Under-provisionofdeferredtaxinprioryear 11 - - - 11Charge/(credit)fortheyeartoincomestatement 5,760 ( 1,461) ( 1,036) 917 4,180

At31December2015 83,249 ( 4,430) ( 1,036) ( 9,082) 68,701

19 Share Capital



21 Retirement Benefit ObligationsPension benefits

Theamountsrecognisedinthestatementoffinancialpositionaredeterminedasfollows:

2015 2014 Rs’000 Rs’000

Presentvalueoffundedobligations 374,215 373,452Fair value of plan assets ( 320,789) ( 291,729)

Liabilityinthestatementoffinancialposition 53,426 81,723

Theamountsrecognisedinprofitorlossareasfollows:

2015 2014 Rs’000 Rs’000

Current service cost - 15,906Schemeexpenses 621 -Costofinsuringriskbenefits 1,321 -Effectofcurtailments/settlements - ( 2,596)Net interest cost 4,663 6,800

Totalincludedinstaffcosts 6,605 20,110

TheactualreturnonplanassetsamountedRs 31,221,272(2014-Rs27,156,773).

Themovementinthe(asset)/liabilityrecognisedintheStatementofFinancialPositionisasfollows:

2015 2014 Rs’000 Rs’000

At01January 81,723 108,363Totalexpense–asshownabove 6,605 20,110Employer’scontributions ( 11,998) ( 19,209)Actuarialgainsrecognisedinothercomprehensiveincome ( 22,904) ( 27,541)

At 31 December 53,426 81,723

21 Retirement Benefit Obligations (Continued)Themovementinpresentvalueoffundedobligationsisasfollows:

2015 2014 Rs’000 Rs’000

At01January 373,452 380,243Current service cost - 15,906Interest cost 26,180 24,995Actuarial gains ( 13,200) ( 18,578)Benefitspaid ( 12,217) ( 9,913)Settlements - ( 19,201)

At 31 December 374,215 373,452

Themovementinfairvalueofplanassetsisasfollows:

At01January 291,729 271,880Interest income 21,517 18,195Employer’scontribution 11,998 19,209Schemeexpenses ( 621) -Costofinsuringriskbenefits ( 1,321) -Actuarial gains 9,704 8,963Benefitspaid ( 12,217) ( 9,913)Settlements - ( 16,605)

At 31 December 320,789 291,729

Analysisofamountrecognisedinothercomprehensiveincome

Gainsonpensionschemeassets 9,704 8,963Experiencegainsontheliabilities 13,200 18,578

Actuarialgainsrecognisedinothercomprehensiveincome 22,904 27,541

Cumulativeactuarialgains/(losses)attheendoftheyear

Cumulative actuarial losses at start of year ( 140,591) ( 168,132)Actuarialgainsrecognisedthisyear 22,904 27,541

Cumulativeactuariallossesatendofyear ( 117,687) ( 140,591)



2015 2015 2014 2014 Rs’000 % Rs’000 %

Local equities 67,907 21 29,856 10Overseas equities 143,264 45 155,756 54Fixedincome 109,618 34 106,117 36

320,789 100 291,729 100

TheassetsoftheFundaremainlyinvestedoverseasintheGlobalAggregateBondIndexFundBandBlackrockWorldIndexSubfund.PartofthefundisinvestedlocallythroughMCBIM.Thereisalsosomecashheldlocally.Theexpectedreturnonplanassetsisdeterminedbyconsideringtheexpectedreturnsavailableontheassetsunderlyingthecurrentinvestmentpolicy.Expectedreturnsonoverseasequitiesreflectlong-termgovernmentbondyieldsplusanapproximateequityriskpremium.Expectedyieldsasfixedinterestsecuritiesarebasedongovernmentbondyieldsofapproximately7%perannum.

VivoEnergyMauritiusLimitedisexpectedtocontributearoundRs12,000,000tothepensionschemefortheyearending31December2016.Theweightedaveragedurationoftheliabilitiesasat31December2015is14.916years.

Theprincipalactuarialassumptionsusedwereasfollows:

2015 2014 % %

Discount rate 7.00 7.00Future salary increases 5.00 5.00Future pension increases 3.00 3.00NPSCeilingincreases 6.00 5.00

Incaseofthefundedplans,theCompanyensuresthattheinvestmentpositionsaremanagedwithinanasset-liabilitymatching(ALM)frameworkthathasbeendevelopedtoachievelong-terminvestmentsthatareinlinewiththeobligationsunderthepensionschemes.Withinthisframework,theCompany’sALMobjectiveistomatchassetstothepensionobligationsbyinvestinginlong-termfixedinterestsecuritieswithmaturitiesthatmatchthebenefitpaymentsastheyfalldueandintheappropriatecurrency.TheCompanyactivelymonitorshowthedurationandtheexpectedyieldoftheinvestmentsarematchingtheexpectedcashoutflowsarisingfromthepensionobligations.TheCompanyhasnotchangedtheprocessesusedtomanageitsrisksfrompreviousperiods.TheCompanydoesnotusederivativestomanageitsrisk.Alargeportionofassetsin2015consistsofequitiesandbonds,althoughtheCompanyalsoinvestsinproperty,bondsandcash.TheCompanybelievesthatequitiesofferthebestreturnsoverthelongtermwithanacceptablelevelofrisk.Themajorityofequitiesareinagloballydiversifiedportfolioofinternationalbluechipentities.

Atriennialvaluationwascarriedoutasat31December2014.Asaresult,contributionshavebeenreviewedto17.5%.Thisisalsoduetothefactthat,asemployeeshavestoppedaccruingserviceundertheDefinedBenefitSchemeasfrom1January2015,therewouldhenceforthnotbeanyservicecosts.

21 Retirement Benefit Obligations (Continued)Planassetsarecomprisedasfollows:

21 Retirement Benefit Obligations (Continued)Plan assetsNoneoftheplanassetsareinvestedinsharesoftheCompanyorinpropertyusedbytheCompany.

Mortality rateAssumptionsregardingfuturemortalityexperiencearesetbasedonactuarialadviceinaccordancewithpublishedstatisticsandexperience.Theaveragelifeexpectancyinyearsofapensionerretiringatage60onthereportingdateisasfollows:

2015 2014

Male 21 21Female 24 24

Theaveragelifeexpectancyinyearsofapensionerretiringatage60,20yearsafterthereportingdateisasfollows:

2015 2014

Male 21 21Female 24 24

2015 2014 Rs’000 Rs’000

At31December:Presentvalueofdefinedbenefitobligations 374,215 373,452Fair value of plan assets 320,789 291,729

Deficit 53,426 81,723

Experienceadjustmentsonplanliabilities ( 13,200) ( 18,578)

Experienceadjustmentsonplanassets 9,704 8,963



21 Retirement Benefit Obligations (Continued)Sensitivity analysisThesensitivityofthedefinedbenefitobligationtochangesintheweightedprincipalassumptionhavebeendeterminedbasedonsensiblypossiblechangesofthediscountrateorsalaryincreaserateoccurringattheendofthereportingperiodifallotherassumptionsremainedunchangedandareasfollows:

Impact on defined benefit obligation Change in Decrease in Increase in Assumption Assumption AssumptionDiscountrate 0.5% Increaseby8.0% Decreaseby7.2%Futurelong-termsalaryassumption 0.5% Decreaseby2.7% Increaseby2.9%

Theabovesensitivityanalysisisbasedonachangeinanassumptionwhileholdingallotherassumptionsconstant.Inpractice,thisisunlikelytooccur,andchangesinsomeassumptionsmaybecorrelated.Whencalculatingthesensitivityofthedefinedbenefitobligationtosignificantactuarialassumptionsthesamemethod(presentvalueofthedefinedbenefitobligationcalculatedwiththeprojectedunitcreditmethodattheendofthereportingperiod)hasbeenappliedaswhencalculatingthepensionliabilityrecognisedwithinthestatementoffinancialposition.

Themethodsandtypesofassumptionsusedinpreparingthesensitivityanalysesdidnotchangecomparedtothepreviousperiod.

Throughitsdefinedbenefitpensionplans,theCompanyisexposedtoanumberofrisks,themostsignificantofwhicharedetailedbelow:

Asset volatilityTheplanliabilitiesarecalculatedusingadiscountratesetwithreferencetocorporatebondyields;ifplanassetsunderperformthisyield,thiswillcreateadeficit.Theplanholdsasignificantproportionofequities,whichareexpectedtooutperformcorporatebondsinthelong-termwhileprovidingvolatilityandriskintheshort-term.Astheplansmature,theCompanyintendstoreducethelevelofinvestmentriskbyinvestingmoreinassetsthatbettermatchtheliabilities.

Changes in bond yieldsAdecreaseincorporatebondyieldswillincreaseplanliabilities,althoughthiswillbepartiallyoffsetbyanincreaseinthevalueoftheplans’bondholdings.

Inflation riskTherearesomeoftheCompany’spensionobligationswhicharelinkedtoinflation,andhigherinflationwillleadtohigherliabilities(although,inmostcases,capsonthelevelofinflationaryincreasesareinplacetoprotecttheplanagainstextremeinflation).Themajorityoftheplan’sassetsareeitherunaffectedby(fixedinterestbonds)orlooselycorrelatedwith(equities)inflation,meaningthatanincreaseininflationwillalsoincreasethedeficit.

Life expectancyThemajorityoftheplans’obligationsaretoprovidebenefitsforthelifeofthemember,soincreasesinlifeexpectancywillresultinanincreaseintheplans’liabilities.Thisisparticularlysignificantintheplan,whereinflationaryincreasesresultinhighersensitivitytochangesinlifeexpectancy.

22 Trade and Other Payables

2015 2014 Rs’000 Rs’000

Tradepayables 1,043,199 1,174,214Payabletorelatedparties(Note28(vii)) 30,693 27,026Otherpayablesandaccruals 122,064 138,747

1,195,956 1,339,987

23 Deposits on LPG Cylinders

2015 2014 Rs’000 Rs’000

At01January 294,499 287,751Deposits – net 27,635 6,748

At 31 December 322,134 294,499

24 Cash, Cash Equivalents and Bank Overdrafts

Cash,cashequivalentsandbankoverdraftsincludethefollowingforthepurposesofthecashflowstatement.

2015 2014 Rs’000 Rs’000

Cashandcashequivalents 67,664 55,990Bankoverdrafts ( 98,935) ( 416,569)

( 31,271) ( 360,579)

Bankoverdraftsarerepayableondemandandbearaverageinterestratesof5.36% annually(2014-5.42%annually).



25 DividendsTheCompanydeclaredthefollowingdividendsduringtheyear.

2015 2014 Rs’000 Rs’000

Rs Nilperordinaryshare(2014-Rs2.80) - 82,102Rs 2.90perordinaryshare(2014-Rs2.20) 85,035 64,509

85,035 146,611

Nofinaldividendwasdeclaredin2015inrespectofthefinancialyearended31December2014.ThedividendofRs 2.90declaredin2015representstheinterimdividendinrelationtothefinancialyearended31December2015.

26 Operating LeasesTheCompanyleasesvariousplotsoflandandvehiclesundernon-cancellableoperatingleaseagreements.Theleaseshavevaryingterms,escalationclausesandrenewalrights.TheleaseexpenditurechargedtoprofitorlossduringtheyearisdisclosedinNote7.

Thefutureaggregateminimumleasepaymentsundernon-cancellablemotorvehicleleasesareasfollows:

2015 2014 Rs’000 Rs’000

Within 1 year 12,787 13,407Between1and5years 28,056 30,591Afterfiveyears 24,308 18,230

Thefutureaggregateminimumleasepaymentsundernon-cancellableleaseholdlandleasesareasfollows:

2015 2014 Rs’000 Rs’000

Within 1 year 6,977 6,902Between1and5years 21,722 22,773Afterfiveyears 88,899 94,543

27 Contingent LiabilitiesAt31December2015,theCompanyhadcontingentliabilitiesamountingtoRs 35,292,000(31December2014–Rs34,057,000)consistingprincipallyofVATclaimedandcorporatetaxonreceiptofRs62,986,400representingproceedsfromtheassignmentoftheCompany’seconomicrightsintheShelltrademarkin2008,whichitiscontestingandforwhichnoliabilityhasbeenrecognisedinthesefinancialstatements.

28 Related Party TransactionsAt31December2015,theCompanyiscontrolledbyVivoEnergyMauritiusHoldingsBVwhichowns77.15%oftheCompany’sshares.Theremaining22.85%ofthesharesarewidelyheldandarelistedontheStockExchangeofMauritius.TheintermediateandultimateparentsoftheCompanyareVivoEnergyHoldingBVandHVInvestmentsBV,companiesbasedinNetherlands.Fellowsubsidiariesareentitieswhicharecontrolledbytheultimateparentdirectlyorindirectlythroughoneormoreintermediaries.AssociatesareentitiesinwhichtheCompanyhassignificantinfluencebutwhichitdoesnotcontrol.Thefollowingtransactionswerecarriedoutwithrelatedparties:

28 Related Party Transactions (Continued)

2015 2014 Rs’000 Rs’000

(i)Purchasesofgoodsandservicesfromfellowsubsidiaries

Purchases of goods:ShellandVivoLubricantsSA(lubricantsfreight) 11,239 14,545VitolAsiaPte(fuels) 103,034 483,842VitolBahrainE.C.(fuels) 152,556 521,606VivoEnergyBotswana(additives) 599 -

267,428 1,019,993

Purchases of services:VivoEnergyAfricaServicesSàrl 89,841 96,378

TheabovetransactionrepresentstheCompany’sshareofcentralservicecostforbusinesssupportservicesandaspertheintragroupservicesagreement(contributionagreement)betweenVivoEnergyMauritiusLimitedandVivoEnergyAfricaServicesSàrl(VEAS).

(ii)Salesofgoodsandservices

(a) Sales of goods to fellow subsidiary:VitolAviation(fuels) 323,689 570,024VivoEnergyUganda(seals) 893 299SociétéMalgachedesPétrolesVivoEnergy(lubricants) 51 -VivoEnergyBurkina(lubricants) 16 -

324,649 570,323

(b) Sales of services:EnergyStorageCompanyLtd(jointventure)(managementservices) 3,000 2,500EnergyStorageCompanyLtd(jointventure)(rent) 288 288VivoEnergyIndianOceanHoldings(managementservices)(fellowsubsidiary) 1,294 1,216

4,582 4,004

Theabovetransactionswerecarriedoutonnormalcommercialtermsandconditions.

(iii)Keymanagementpersonnel(includingfulltimedirectors)

SharesheldintheCompany-Directly - --Indirectly - -

- -

Emoluments 36,263 38,248Postemploymentbenefits 5,445 4,378

41,708 42,626



28 Related Party Transactions (Continued)

2015 2014 Rs’000 Rs’000

(iv)ExpensesExpenses paid on behalf of fellow subsidiaries:VivoEnergyInvestmentBV(VEIBV) 18,328 20,296VivoEnergySA(Pty)Ltd(VESA) 2,258 21SociétéMalgachedesPétrolesVivoEnergy 1,212 1,740VivoEnergyBotswana 1,616 219VivoEnergyKenya - 65VivoEnergyNamibia - 69VivoEnergyUganda 734 276

24,148 22,686

ExpensespaidonbehalfofVivoEnergyInvestmentBV(VEIBV)includedstaffcostsofRs 16,921,000(2014–Rs17,628,000)andwererechargedtoVEIBVwithamark-upof7%.(2014-7%).Theotherexpensesrelatedtotheabovetransactionswerereclaimedfromtheaboverelatedcompaniesandinvoicedatcost.

(v)DividendsreceivedEnergyStorageCompanyLtd(jointventure) - 10,000

(vi)DividendspaidVivoEnergyMauritiusHoldingsBV(parent) 65,608 135,740

(vii)OutstandingbalancesReceivable from related parties:VitolAviation(fellowsubsidiary) 22,595 31,637VivoEnergyInvestmentBV(VEIBV)(fellowsubsidiary) 8,621 10,230EnergyStorageCompanyLtd(jointventure) 427 377SociétéMalgachedesPétrolesVivoEnergy(fellowsubsidiary) 262 189VivoEnergyBotswana(fellowsubsidiary) 762 -VivoEnergySouthAfrica(fellowsubsidiary) 1,209 -VivoEnergyUganda(fellowsubsidiary) 173 -

34,049 42,433

Payable to related parties:VivoEnergyAfricaServices(fellowsubsidiary) 30,044 26,969ShellandVivoLubricantsSA(fellowsubsidiary) 607 -VitolAviation(fellowsubsidiary) 42 57

30,693 27,026

Theamountsreceivablefrom,andpayabletorelatedpartiesareunsecured,interestfreeandhavenofixedrepaymenttermsandapproximatetheirfairvalues.

29 Three Year Summary

2015 2014 2013 Rs’000 Rs’000 Rs’000

Income Statement

Sales 10,139,537 12,784,100 13,148,448

Operatingprofit 335,434 181,682 254,714Finance income 1,867 677 436Finance cost ( 8,097) ( 9,540) ( 10,474)Shareofprofitofjointventure 10,594 10,679 9,594

Profitbeforeincometax 339,798 183,498 254,270Incometaxexpense ( 57,171) ( 29,167) ( 31,595)

Profitfortheyear 282,627 154,331 222,675

DividendsdeclaredpershareRs 2.90 5.00 1.00

Basicanddilutedearningspershare 9.64 5.26 7.59

Statement of Comprehensive Income

2015 2014 2013 Rs’000 Rs’000 Rs’000

Profitfortheyear 282,627 154,331 222,675

Other comprehensive incomeItemsthatwillnotbereclassifiedtoprofitorloss:Remeasurementsofpostemploymentbenefitobligations 22,904 27,541 ( 69,896)Deferredtax(liability)/assetonremeasurementofpostemploymentbenefitobligations ( 3,894) ( 4,682) 11,883

Other comprehensive income for the year 19,010 22,859 ( 58,013)

Totalcomprehensiveincomefortheyear 301,637 177,190 164,662



29 Three Year Summary (Continued)

2015 2014 2013 Rs’000 Rs’000 Rs’000

Statement of financial position

ASSETSNon-current assetsProperty,plantandequipment 1,056,118 908,682 821,957Intangible assets 2,124 - -Prepaidoperatingleases 10,362 604 672Investmentinjointventures 46,402 35,807 18,128Otherlong-termassets 6,524 11,425 10,230

1,121,530 956,518 850,987

Current assetsInventories 619,093 666,951 995,452Tradeandotherreceivables 690,102 1,018,886 1,173,452Cashandcashequivalents 67,664 55,990 183,387Incometaxasset - 3,587 -

1,376,859 1,745,414 2,352,291

Total assets 2,498,389 2,701,932 3,203,278

EQUITY & LIABILITIESEquityShare capital 293,223 293,223 293,223Retainedearnings 431,917 215,315 184,736

Total equity 725,140 508,538 477,959

LIABILITIESNon-current liabilitiesDeferredincometaxliabilities 68,701 60,616 49,466Retirementbenefitobligations 53,426 81,723 108,363

122,127 142,339 157,829

Current liabilitiesBankoverdrafts 98,935 416,569 6,369Tradeandotherpayables 1,195,956 1,339,987 2,267,745DepositsonLPGcylinders 322,134 294,499 287,751Currentincometaxliabilities 34,097 - 5,625

1,651,122 2,051,055 2,567,490

Total liabilities 1,773,249 2,193,394 2,725,319

Total equity and liabilities 2,498,389 2,701,932 3,203,278

30 Financial Instruments by Category

Loansandreceivables 2015 2014 Rs’000 Rs’000

Financial assetsTradeandotherreceivables 660,504 982,880Cashandcashequivalents 67,664 55,990

728,168 1,038,870

Atamortisedcost

2015 2014 Rs’000 Rs’000

Financial liabilitiesBankoverdraft 98,935 416,569Tradeandotherpayables 1,195,956 1,339,987DepositonLPGcylinders 322,134 294,499

1,617,025 2,051,055

31 Parent and Ultimate Parent CompaniesAt31December2015,thedirectorsconsiderVivoEnergyMauritiusHoldingsB.V.(incorporatedintheNetherlands)astheparentcompany.TheintermediateandultimateparentsoftheCompanyareVivoEnergyHoldingBVandHVInvestmentsBV,companiesbasedinNetherlands.

32 Incorporation and Registered OfficeTheCompanyisincorporatedanddomiciledinMauritiusasapubliccompanywithlimitedliability.TheaddressofitsregisteredofficeisRocheBois,PortLouis.

33 CurrencyThefinancialstatementsarepresentedinthousandsofMauritianrupees.

ProxyForm

Note:: 1.AmemberoftheCompanyentitledtoattendandvoteatthismeetingmayappointaproxyofhis ownchoice(whetheramemberornot)toattendandvoteonhisbehalf. 2.Pleasemarkintheappropriateboxhowyouwishtovote.Ifnospecificdirectionastovotingis given,theproxywillexercisehisdiscretionastohowhe/shevotes. 3.ProxyformsdulysignedshouldreachtheregisteredofficeoftheCompanyatleastFORTY-EIGHT hoursbeforetheholdingofthemeetingorelsetheinstrumentofproxyshouldnotbetreatedasvalid. Shelltrademarksusedunderlicense

I/Weofbeingamember/membersoftheabovenamedCompany,herebyappointof or failing him/her of asmy/ourproxytovoteforme/usandonmy/ourbehalfattheAnnualMeetingofShareholdersoftheCompany,tobeheldonthe13May2016andatanyadjournmentthereof.

I/Wedesiremy/ourvote(s)tobecastontheResolutionsasfollows:

RESOLUTIONS For Against AbstainI Resolvedthattheminutesbeadoptedastrueproceedingsofthemeeting.II ResolvedthattheAuditedFinancialStatementsoftheCompanyforthe yearended31December2015beherebyapproved.III ResolvedthatMrPawanKumarJUWAHEERbeherebyre-elected as Director of the CompanyIVResolvedthatMrTimothyTAYLORbeherebyre-elected as Director of the CompanyV ResolvedthattheBoardofDirectorsoftheCompanybeherebyauthorized tofixtheremunerationofMessrsPricewaterhouseCoopers,theauditors oftheCompany,forthefinancialyearending31December2016.

Signedthis dayof

Signature

NoticeisherebygiventhattheAnnualMeetingofShareholdersofVivoEnergyMauritiusLimited(‘theCompany’)willbeheldatLabourdonnaisWaterfrontHotel,CaudanWaterfront,PortLouisonFriday13May2016at14.00hourstotransactthefollowingbusiness:

1. ToadopttheminutesofproceedingsofthelastAnnualMeetingofShareholdersheldon15May2015.

Ordinary Resolution I

“Resolvedthattheminutesbeadoptedastrueproceedingsofthemeeting.”

2. ToconsidertheAnnualReport2015oftheCompany.

3. ToreceivethereportofMessrsPricewaterhouseCoopers,theauditorsoftheCompany.

4. ToconsiderandapprovetheAuditedFinancialStatementsoftheCompanyfortheyearended31December2015.

Ordinary Resolution II

“ResolvedthattheAuditedFinancialStatementsoftheCompanyfortheyearended31December2015be herebyapproved.”

5. Tore-electasDirectoroftheCompanyMrPawanKumarJUWAHEERwhoretiresbyrotationand,beingeligible, offershimselfforre-electioninaccordancewiththeConstitutionoftheCompany.

Ordinary Resolution III

“ResolvedthatMrPawanKumarJUWAHEERbeherebyre-electedasDirectoroftheCompany.”

6. Tore-electasDirectoroftheCompanyMrTimothyTAYLORwhoretiresbyrotationand,beingeligible,offers himselfforre-electioninaccordancewiththeConstitutionoftheCompany.

Ordinary Resolution IV

“ResolvedthatMrTimothyTAYLORbeherebyre-electedasDirectoroftheCompany.”

8. TotakenoteoftheautomaticreappointmentofMessrsPricewaterhouseCoopersasauditorsoftheCompanyand toauthorisetheBoardtofixtheirremunerationforthefinancialyearending31December2016.

Ordinary Resolution VI

“ResolvedthattheBoardofDirectorsoftheCompanybeherebyauthorizedtofixtheremunerationofMessrs PricewaterhouseCoopers,theauditorsoftheCompanyforthefinancialyearending31December2016.”

ByorderoftheBoard

ExecutiveServicesLimitedPerChristianAngseesingSecretary

Notice of MeetingofShareholders

Shelltrademarksusedunderlicense

Note:: Amembernotbeingabletoattendandvoteatthemeetingisentitledtoappointaproxytoattendandvoteonhisbehalf.Theproxyneednotbeamember.ProxyformsdulysignedshouldreachtheregisteredofficeoftheCompanyatleastFORTY-EIGHThoursbeforetheholdingofthemeeting.


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Who - Vivo Energy Report Vivo_2015v2_low res.pdf · These core values are encapsulated in our General Business Principles ... , namely Subway and Innscor ... employees followed the