Complete 2012 Annual Report - Agra

Agra (CO-OPERATIVE) LTD 

ANNUAL REPORT 

JULY 2012

Agra (Co-operative) Limited and its subsidiaries 

Annual Financial Statements for the year ended 31 July 2012 

General Information 

Country of incorporation and domicile Namibia 

Nature of business and principal activities Agra (Co-operative) Limited is the largest multipurpose 

agricultural co-operative in the country. Agra has branches 

throughout Namibia providing farming inputs and equipment as 

well as pet accessories, camping equipment, gardening and 

household goods. Agra is also the largest livestock organisation 

in Namibia. 

Directors R van der Merwe (Chairman) 

BH Mouton (Vice chairman) 

LC van Wyk 

P Schonecke 

S Wilckens 

JW Visagie 

Supervisory committee JH Niewoudt (Chairman) 

H Stroh 

SK Shikongo 

Registered office 8 Bessemer Street 

Windhoek 

Namibia 

Postal address Private Bag 12011 

Windhoek 

Namibia 

Bankers Bank Windhoek Limited 

Standard Bank Namibia Limited 

First National Bank of Namibia Limited 

Auditors PricewaterhouseCoopers 

Registered Accountants and Auditors 

Chartered Accountants (Namibia) 

PwC, a partnership duly organised according to the laws of the 

Republic of Namibia (hereafter referred to as "PwC", "we", "us", 

our") 

Co-operative registration number F02/98 

1



General Information 

Management PM Kazmaier (Chief Executive Officer) 

PL de Bruyn (Finance) 

A Klein (Retail and Wholesale) 

G Beukes (Human Resources) 

T Koen (Livestock) 

H Tiemann (Properties and Business Development) 

D Grobler (Marketing) 

2



Contents 

The reports and statements set out below comprise the annual financial statements presented to the shareholders: 

Contents Page 

Report of the Supervisory Committee 4 

Report of the Chairman 5 - 6 

Report of the Chief Executive Officer 7 - 19 

Directors' Responsibilities and Approval 20 

Independent Auditors' Report 21 - 22 

Directors' Report 23 - 24 

Statement of Financial Position 25 - 26 

Statement of Comprehensive Income 27 

Statement of Changes in Equity 28 - 29 

Statement of Cash Flows 30 

Accounting Policies 31 - 46 

Notes to the Annual Financial Statements 47 - 84 

The following supplementary information does not form part of the annual financial statements and is unaudited: 

Detailed Statement of Comprehensive Income 85 - 86 

3



Report of the supervisory committee 

Report of the Supervisory Committee 

The year under review, much like the previous number 

of years, consisted of mostly good rainfall for farmers 

and good financial performance for Agra. Taking an 

analytical look however, it becomes clear that it did not 

go too well with farmers. The pressure on production 

costs increased while income decreased amongst 

others as a result of problems in the international 

economy. Agra also had its challenges, especially in the 

livestock division. 

During the year under review all three supervisory 

committee members attended all the meetings of the 

board of directors and were thus informed and had 

input into all matters discussed. In the competitive 

business environment in which we operate it is crucial 

to get maximum inputs and support of those who have 

been elected by members to serve on the board of 

directors. The supervisory committee can confirm that 

the essential research for business development and all 

the relevant actions are well considered, and are done 

with prudence. 

The board and management are congratulated with the 

financial performance of the past year. Members should 

take cognisance of the fact that it was not only business 

with members resulting in these achievements, but that 

diversification largely contributed to the success, for the 

benefit of the members. 

Lastly, I would like to state: business development does 

not only require innovation and planning – it also calls 

for financial inputs of a magnitude that is sometimes 

difficult to comprehend. As farmers, we know that you 

first have to sow before you can harvest; you first need 

to invest in a good quality herd of cattle or sheep, 

before you can market calves or lambs. Agra is at the 

point where new developments need to be done to be 

able to reap a good harvest in a number of years. 

We wish the board of directors, management and staff 

all the best for the exciting times ahead. 

J H Nieuwoudt 

SUPERVISORY COMMITTEE 

TOESIGHOUDENDE KOMITEE 

Verslag van Toesighoudende Komitee (TK) 

Die jaar onder oorsig het verloop soos die afgelope 

paar jare, met meestal goeie reëns vir boere en goeie 

prestasie op finansiële gebied vir Agra. Kyk mens 

egter analities daarna dan is dit duidelik die boere nie 

te goed gegaan het nie. Die druk op produksiekoste 

het toegeneem terwyl inkomste gedaal het, 

ondermeer as gevolg van probleme in die 

internasionale ekonomie. Agra het ook sy uitdagings 

gehad, veral in die lewende hawe afdeling. 

Gedurende die jaar het al drie TK lede al die direksie 

vergaderings bygewoon, en het dus insae gehad en 

insette gelewer in al die sake onder bespreking. In die 

kompeterende besigheids-omgewing waarin ons 

beweeg is dit nodig om maksimum insette en 

ondersteuning te kry van hulle wat deur lede 

aangewys is om op die direksie te dien. Die TK kan 

getuig dat die voetwerk wat nodig is met 

besigheidsontwikkeling en al die aksies wat daarmee 

gepaard gaan, werklik goed deurdag en beredeneerd 

gedoen word. 

Die bestuur en direksie word gelukgewens met die 

finansiële prestasie van die afgelope jaar. Dit is egter 

belangrik dat lede kennis neem van die feit dat dit nie 

net besigheid met lede was wat hierdie prestasies tot 

gevolg het nie, maar dat diversifikasie grootliks 

gehelp het om die boeke so goed te laat klop tot die 

voordeel van lede. 

Ten slotte net dit: besigheidsontwikkeling verg nie net 

innovasie en beplanning nie; dit vra ook finansiële 

insette van ‘n omvang wat mens soms laat duisel. 

Ons boere weet egter dat jy eers moet plant en saai 

voordat jy kan oes; dat jy eers in ‘n goeie 

kuddebeeste of skape moet belê voordat jy kalwers of 

lammers kan bemark. Agra is op daardie punt waar 

nuwe ontwikkelings noodsaaklik is om oor ‘n paar jaar 

goeie oeste te kan insamel. 

Baie sterkte en voorspoed word direksie, bestuur en 

personeel toegewens in die opwindende tye wat 

voorlê. 

4

Report of the chairman 




As far as market-and price fluctuations are concerned, 

Namibia is not isolated from international tendencies. 

The financial crisis in certain countries has a negative 

effect on especially the hunting and tourism industry. 

The below average production conditions in certain 

stock farming areas of South Africa resulted in forced 

marketing. The increasing grain prices place the 

profitability of feedlots under pressure. The impact of 

the above mentioned factors caused a drastic decrease 

in prices of livestock at the beginning of 2012. Prices for 

swakara pelts, charcoal and agronomy products are 

high while dairy producers’ profit margins are under 

pressure due to high input costs. In addition to producer 

prices, market access and the factors affecting it, are 

equally important. The animal health status of Namibia 

is absolutely crucial. 

During the year under review Agra has redefined its 

reason for existence by means of the following purpose 

statement: 

To create prosperity and improve quality of life is a 

noble purpose if: 

- we contributes towards socio-economic quality of 

life 

- we cares for the environment 

- we creates conditions for people to succeed and 

- we builds innovative and sustainable businesses 

There is huge potential in the agricultural sector which 

can be explored and developed to create employment 

and reduce poverty. Because 70% of Namibia’s 

population is directly or indirectly dependent on 

agriculture for their survival, this sector needs to be 

acknowledged and supported. Undeveloped and 

underdeveloped areas need to be a priority, integrated 

rural development programmes need to be 

implemented, natural resources need to be used 

sustainably and certainty with regard to land ownership 

and rights need to be created. Safety and security is a 

prerequisite for peace and stability and earns the trust 

of potential investors to invest locally. The Namibian 

Government has a huge responsibility to provide 

transparent investment policies and create a well 

regulated environment in which the private sector can 

do business. 

Verslag van die Voorsitter 

Ten opsigte van mark- en prysskommelings is 

Namibië nie geïsoleer van internasionale tendense 

nie. Die finansiële krisis in sekere lande het ‘n 

negatiewe invloed op veral die jag- en toerismebedryf. 

Die ondergemiddelde produksie-omstandighede in 

sekere veeboerderystreke van Suid-Afrika het 

drukbemarking tot gevolg gehad. Die stygende 

graanpryse plaas die winsgewendheid van voerkrale 

onder druk. Die impak van bogenoemde faktore het ‘n 

drastiese daling in lewende hawepryse aan die begin 

van 2012 tot gevolg gehad. Pryse vir Swakara pelse, 

houtskool- en akkerbouprodukte is hoog terwyl 

suiwel`-produsente se winsmarges as gevolg van hoë 

insetkostes onder druk verkeer. Behalwe vir pryse is 

marktoegang en die faktore wat dit beïnvloed net so 

belangrik. Die dieregesondheidstatus van Namibië is 

ononderhandelbaar. 

Agra het gedurende die afgelope jaar die rede vir sy 

bestaan herformuleer en stel sy doel: 

Om welvaart te skep en lewenskwaliteit te verbeter. 

Dit is ‘n edel doel as ons: 

- bydra tot sosio-ekonomiese lewenskwaliteit 

- die omgewing in ag neem 

- omstandighede skep vir mense om sukses te 

behaal en 

- innoverende en volhoubare besighede bou. 

Daar is baie potensiaal in die landbousektor wat 

ontwikkel en ontgin kan word om werk te skep en 

armoede te verlig. Omdat 70% van Namibië se 

bevolking direk of indirek afhanklik is van landbou vir 

hul voortbestaan, moet die sektor erkenning en 

ondersteuning kry. On- en onderontwikkelde gebiede 

behoort ‘n prioriteit te wees, geïntegreerde landelike 

ontwikkelingsprogramme moet implementeer word, 

natuurlike hulpbronne moet volhoubaar benut word en 

sekerheid oor grondeienaarskap en regte moet 

uitgeklaar word. Veiligheid en sekuriteit is ‘n 

voorvereiste vir vrede en stabiliteit en skep vertroue 

by potensiële beleggers om te investeer. Die 

Namibiese regering het ‘n groot verantwoordelikheid 

om deursigtige beleggingsbeleide te voorsien en ‘n 

goed gereguleerde omgewing te skep waarbinne die 

privaatsektor besigheid kan doen. 

5




Agra converts to a public company on 1 February 2013. 

Agra will continue to invest in the Namibian Agriculture 

sector and will also continue its efforts to improve the 

knowledge and skills in the various agricultural 

disciplines by providing training, assistance and support 

through our Professional Services Division and our 

support of agricultural projects and initiatives. 

The opening of the Oshivelo retail branch on 3 August 

2012 was a huge milestone in the history of Agra. This 

shows Agra’s confidence of investing into the rural 

areas of Namibia and its endeavours to create 

opportunities for the community to benefit from both the 

availability of products as well as advice and expertise 

regarding the optimal use of the various products. 

Agra is an important partner in the Namibian economy 

to create employment, offer training, support projects 

and provide products and services to clients in order to 

create prosperity. 

We are however aware that agriculture is of a cyclic 

nature due to the climate, prices and input costs. Our 

producers must, in the good years such as the past 

number of year, make provision for the more difficult 

times. Agra must position itself strategically for this. 

Thank you very much to my co-directors and members 

of the supervisory committee for your sincerity and 

dedication to make Agra a successful business. Thank 

you to all loyal clients who conducted business with 

Agra. 

The board of directors takes pride in the financial 

results of the past year. It was a challenging budget, 

which could only have been achieved as a result of a 

motivated and focused team. I would like to 

congratulate Mr. Peter Kazmaier, Chief Executive 

Officer, the management team and staff of Agra, with 

the excellent financial results. We are proud of the 

contribution of each employee to the success of Agra. 

R VAN DER MERWE 

CHAIRMAN OF THE BOARD OF DIRECTORS 

(VOORSITTER VAN DIE RAAD VAN DIREKTEURE) 

Agra omskep op 1 Februarie 2013 in ‘n openbare 

maatskappy. Agra sal voortgaan om in die Namibiese 

landbousektor te belê en ons sal ook ons pogings 

voortsit om die kennis en vaardighede van verskeie 

landboudissiplines te verbeter deur opleiding, leiding 

en ondersteuning te verskaf deur middel van ons 

Professionele Dienste Afdeling en ons ondersteuning 

aan landbouprojekte en inisiatiewe 

Die opening van Oshivelo handelstak op 3 Augustus 

2012 is a groot mylpaal in die geskiedenis van Agra. 

Dit is ‘n bewys van Agra se vertroue om in die 

landelike gebiede van Namibië te belê en Agra se 

pogings om geleenthede te skep vir gemeenskappe 

om toegang te hê tot produkte sowel as raad en 

kundigheid vir die optimale gebruik van die 

onderskeie produkte. 

Agra is ‘n belangrike vennoot in die namibiese 

ekonomie om werk te skep, opleiding te verskaf, 

projekte te ondersteun en ‘n diens en produkte te 

verskaf aan kliënte om sodoende welvaart te skep. 

Ons is egter bewus dat landbou as gevolg van die 

klimaat, pryse en insetkostes, siklies van aard is. Ons 

produsente moet in goeie jare soos die afgelope paar 

jaar, voorsiening maak vir moeiliker tye. Agra moet 

homself hiervoor strategies posisioneer. 

Baie dankie aan die mededirekteure en lede van die 

toesighoudende komitee vir die toegewydheid en erns 

om van Agra ‘n suksesvolle besigheid te maak. 

Dankie aan lojale kliente wat met Agra besigheid 

gedoen het. 

Die direksie is trots op die afgelope jaar se finansiële 

resultate.Dit was ‘n uitdagende begroting wat slegs 

bereik kon word deur ‘n gemotiveerde span wat 

gefokus is. Ek wil namens die direksie vir mnr. Peter 

Kazmaier, Hoof Uitvoerende Beampte, die 

bestuurspan en personeel gelukwens met die puik 

finansiële resultate. Ons is trots op die bydrae van 

elke werknemer tot Agra se sukses. 

6

Report of the Chief Executive Officer 

INTRODUCTION 



This will be the last report of the Chief Executive Officer 

of Agra Co-operative, seeing that conversion into a 

public company will take place on 1 February 2013. 

With great pride and gratitude we therefore report that 

Agra has once again experienced good growth and 

improved results. 

Group turnover grew by 13,6% in the Retail division. 

This exciting growth was achieved against fierce 

competition from South African based companies. Our 

thanks go to our motivated staff who delivered great 

service, and to our loyal customers who made this 

possible. In the Livestock division turnover declined by 

14.9%, mostly as a result of a lower number of cattle 

marketed. 

Total gross group turnover increased by 3% to N$1,83 

billion. 

FINANCIAL OVERVIEW 

It is once again a pleasure to report on remarkable 

results achieved. Net turnover for the group increased 

by 13% from N$953 million in 2011 to N$1,073 million 

in 2012. Net profit before tax for the group improved by 

22% from N$36,3 million in 2011 to N$44,4 million in 

2012. Net profit after tax for the group improved by 

28% from N$24,5 million in 2011 to N$31,4 million in 

2012. No dividend has been declared due to the fact 

that various capital expenditure projects are envisaged 

for the 2012/2013 financial year and beyond. Some of 

these projects will be financed from own resources. 

Total equity now amounts to N$134 million. 


Verslag van die Hoof Uitvoerende Beampte 

INLEIDING 

Hierdie sal die laaste verslag van die Hoof 

Uitvoerende Beampte van Agra Koöperatief wees, 

gesien die omskepping na ‘n openbare maatskappy 

op 1 Februarie 2013. Dit is dus met groot trots en 

dankbaarheid dat ons rapporteer dat Agra weer eens 

goeie groei getoon het en verbeterde resultate behaal 

het. 

Die groepomset in die handelsafdeling het met 13,6% 

gegroei. Hierdie opwindende groei is bereik ondanks 

sterk kompetisie van Suid-Afrikaans gebaseerde 

maatskappye. Ons dank gaan aan ons gemotiveerde 

personeel wat uitstaande diens gelewer het en aan 

ons lojale kliënte wat dit moontlik gemaak het. In die 

lewende hawe afdeling het omset verminder met 

14,9%, hoofsaaklik as gevolg van ‘n laer getal beeste 

wat bemark is. 

Totale bruto omset vir die groep het met 3% 

toegeneem tot N$1,83 biljoen. 

FINANSIËLE OORSIG 

Dit is weer eens ‘n plesier om te kan verslag gee oor 

merkwaardige resultate wat behaal is. Netto omset vir 

die groep het met 13% toegeneem, van N$953 

miljoen in 2011 tot N$1,073 miljoen in 2012. Netto 

wins voor belasting vir die groep het verbeter met 

22%, van N$36,3 miljoen in 2011 tot N$44,4 miljoen 

in 2012. Netto wins na belasting vir die groep het 

verbeter met 28%, van N$24,5 miljoen in 2011 tot 

N$31,4miljoen in 2012. Geen dividende is verklaar nie 

vanweë die feit dat verskeie kapitaalprojekte in die 

vooruitsig gestel is vir die 2012/2013 finansiële jaar 

en daarna. Sommige van hierdie projekte sal uit eie 

bronne finansier word. 

Totale ekwiteit beloop tans N$134 miljoen. 

7

1. LIVESTOCK DIVISION 



The number of animals marketed during the 2011/12 

year were as follows: 

Average prices per head achieved in the various 

categories were as follows: 

2012 

N$/Head 


2011 

N$/Head 

1. LEWENDE HAWE AFDELING 

Die aantal diere wat bemark is gedurende die 

2011/12 jaar was soos volg: 

Gemiddelde pryse per kop behaal in die verskeie 

kategorieë was soos volg: 

% verandering 

Cattle 4,947 4,099 20,7% Beeste 

Sheep 710 630 12,7% Skape 

Goat 711 686 3,6% Bokke 

Game 7,402 7,059 4,9% Wild 

Total gross N$ turnover achieved for the various 

categories was as follows: 


N$ 

(million) 

2011 

N$ 

(million) 

Totale N$ omset vir die verskillende kategorieë was 

soos volg: 

% verandering 

Cattle 527,4 619,1 (14,8%) Beeste 

Sheep 129,6 121,8 6,4% Skape 

Goat 51,9 63,6 (18,4%) Bokke 

Game 13,5 4,7 185,1% Wild 

Total 722,4 809,2 -10,7% Totaal 

Net turnover achieved for the livestock division 

amounted to N$39,1 million compared to N$43,6 

million in 2011, a decrease of 10,3%. 

1.1 Overall Livestock Division 

Livestock marketing and selling remains a huge credit 

risk for the organisation due to the informal way in 

which this industry operates. Provision for bad debts 

for the year under review totalled N$2,5 million. 

Much stricter controls have been implemented toward 

the end of the financial year in order to manage the 

credit risk. 


Heads 

2011 

Heads 

% verandering 

Cattle 106,603 151,037 (29,4%) Beeste 

Sheep 182,650 193,328 (5,5%) Skape 

Goat 73,045 92,611 (21,1%) Bokke 

Game 1,830 660 177,3% Wild 

Netto omset behaal in die lewende hawe afdeling, 

het N$39,1 miljoen beloop vergeleke met N$43,6 

miljoen in 2011, ‘n daling van 10,3% 

1.1 Algehele lewende hawe afdeling 

Lewende hawe bemarking en verkope bly ‘n groot 

kredietrisiko vir die organisasie as gevolg van die 

informele manier waarop die industrie werk. 

Voorsiening vir slegte skulde vir die jaar onder oorsig 

beloop N$2,5 miljoen. Baie strenger 

beheermaatreëls is geimplementeer teen die einde 

van die finansiële jaar om die kredietrisiko te beheer. 

8



Notwithstanding the fact that turnover decreased by 

10,7% the net profit before head office costs for this 

division improved dramatically from N$2,6 million in 

2011 to N$9,2 million in 2012. This is mostly as a 

result of lower costs incurred for livestock agents in 

the Central Region. 

1.2 Swakara 

Pelt quantities sold at the two auctions in 

Copenhagen during September 2011 and April 2012 

amounted to 114,618 pelts, which reflects a decrease 

of 8% compared to 124,261 pelts sold during the year 

ending July 2011. 

Unit prices per pelt increased from an average of 

N$422.37 in the previous financial period to N$594.95 

in 2012, an increase of 41%, mainly as a result of the 

demand for white Swakara pelts. The average price 

of white pelts amounted to N$763.29 with the highest 

price at N$2,348.55. 

2. RETAIL AND WHOLESALE DIVISION 

This division comprises the Agra retail branches, 

Auas Wholesalers, Auas Vet Med and Safari Den. 

We are proud to report an improvement in turnover 

from N$872,7 million in 2011 to N$991,1 million in 

2012, an increase of 13,6%. 

At the same time gross profit increased from N$107,4 

million in 2011 to N$121,8 million in 2012 (13,4%). 

Operational expenses increased from N$79,1 million 

in 2011 to N$87,4 million in 2012, an increase of 

10,5%. 

As a result the net operating surplus before head 

office expenses increased from N$49,3 million in 

2011 to N$58,2 million in 2012, a percentage 

improvement of 18%. 


Nieteenstaande die feit dat die omset verminder het 

met 10,7%, het die netto wins vir hierdie afdeling, 

voor hoofkantoorkostes, dramaties verhoog van 

N$2,6 miljoen in 2011 tot N$9,2 miljoen in 2012. Dit 

is hoofsaaklik as gevolg van laer onkostes vir agente 

in die Sentraalstreek. 

1.2 Swakara 

‘n Totaal van 114,618 pelse is by die twee veilings in 

Kopenhagen gedurende September 2011 en April 

2012 verkoop, wat ‘n afname van 8% is in 

vergelyking met die 124,261 pelse wat gedurende 

die jaar geëindig Julie 2011 verkoop is. 

Eenheidspryse per pels het gestyg vanaf ‘n 

gemiddeld van N$422.37 in die vorige finansiële 

periode tot N$594.95 in 2012, ‘n styging van 41%, 

hoofsaaklik as gevolg van die hoë vraag na wit 

Swakara pelse. Die gemiddelde prys vir wit pelse 

was N$763.29 en die hoogste prys N$2,348.55. 

2. KLEIN- EN GROOTHANDELSAFDELING 

Hierdie afdeling bestaan uit die Agra 

kleinhandelstakke, Auas Wholesalers, Auas Vet 

Med en Safari Den. 

Ons is trots om te rapporteer dat die omset 

verbeter het vanaf N$872,7 miljoen in 2011 tot 

N$991,1 miljoen in 2012, ‘n verhoging van 13,6%. 

Terselftertyd het bruto winste toegeneem vanaf 

N$107,4 miljoen in 2011 tot N$121,8 miljoen in 

2012 (13,4%). 

Operasionele uitgawes het toegeneem vanaf 

N$79,1 miljoen in 2011 tot N$87,4 miljoen in 2012, 

‘n verhoging van 10,5%. 

Die netto bedryfssurplus het dienooreenkomstig 

toegeneem vanaf N$49,3 miljoen in 2011 tot 

N$58,2 miljoen in 2012, ‘n persentasieverbetering 

van 18%. 

9

3. PROPERTY DIVISION 



Gross income declined from N$24,6 million in 2011 to 

N$19,6 million in the year under review. 

The major reason for this decline is the fact that in 

2011 a fair value adjustment of N$3.7 million was 

included in the gross income for that year. 

It is important to mention that the Auas Valley 

Shopping Mall complex in Windhoek was fully let for 

the full period. A number of vacancies existed in the 

rural areas. 

Total expenses for the division increased from 

N$10,1 million in 2011 to N$11,5 million in 2012, an 

increase of 11,8%. 

The operating surplus thus decreased from N$14,5 

million in 2011 to N$8,1 million in 2012. 

4. PROFESSIONAL SERVICES (PSD) 

This division was established in 2009 as an integral 

part of Agra, with the aim of growing Agra’s market by 

being the prime provider of professional support 

services to the agricultural sector in Namibia. 

PSD has been focusing on four objectives namely: 

(i) to enhance the competence, knowledge, skills 

and attitudes of farmers, Agra staff and others 

related to agriculture 

(ii) to position PSD in the sector in such a way that 

it is visible, recognized, accepted and relevant 

(iii) to conduct consultancy services in order to 

generate income, focusing on donor/ 

government funded development projects and 

(iv) to render support to the Swakara industry. 


3. EIENDOMSAFDELING 

Bruto inkomste vir hierdie afdeling beloop N$19,6 

miljoen in vergelyking met N$24,6 miljoen in 2011 

(‘n daling van 20%). 

Die bruto inkomste van 2011 sluit egter ‘n billike 

waarde aanpassing op beleggingseiendomme in 

van N$3,7 miljoen. 

Dit is ook belangrik om te wys daarop dat die Auas 

Valley inkoopsentrum ten volle verhuur was 

gedurende die finansiële jaar. In die platteland was 

‘n aantal eiendomme vakant. 

Die totale uitgawes van hierdie afdeling het ‘n 

styging getoon van 11,8%, vanaf N$10.1 miljoen in 

2011 tot N$11,5 miljoen in 2012. 

Die bedryfsurplus het gedaal vanaf N$14,5 miljoen 

in 2011 tot N$8,1 miljoen in 2012. 

4. PROFESSIONELE DIENSTE (PSD) 

Hierdie afdeling is in 2009 daargestel as ‘n 

integrale deel van Agra, met die doel om Agra se 

mark te groei deur die vernaamste voorsiener van 

professionele onder-steuningsdienste aan die 

landbousektor in Namibië te wees. 

PSD fokus op vier doelwitte naamlik: 

(i) om die bevoegdheid, kennis, vaardighede en 

gesindheid van boere, Agra personeel en 

ander landboubelanghebbendes, te verbeter. 

(ii) om PSD so te posisioneer in die sektor dat dit 

sigbaar, gereken, aanvaar en relevant is 

(iii) om konsultasiedienste te verrig om sodoende 

‘n inkomste te genereer, gefokus op skenker/ 

regeringbefondste projekte en 

(iv) om ondersteuning te verleen aan die Swakara 

industrie 

10



This division continued to grow its activities during the 

year under review in all subdivisions (consultancies, 

training, research, Swakara services and networking) 

managing to conclude the year by reducing the 

budgeted year to date loss of N$910 000 by N$ 

241 000 to end at a net loss figure of N$669 000. 

5. SUBSIDIARIES AND OTHER INVESTMENTS 

5.1 Ondangwa Service station (Pty) Ltd 

The turnover of this company, in which Agra holds 

70% of the issued share capital, increased from 

N$35,5 million to N$41,3 million (16,3%). 

The attributable profit after tax decreased from 

N$394,274 in 2011 to N$264,223 in 2012. 

5.2 Agra Properties (Pty) Ltd 

The company, in which Agra holds 100% of the 

issued share capital, was established during 

September 2010 

The gross income of this company increased from 

N$71,334 in 2011 to N$489,406 in 2012. 

The attributable profit after tax increased from 

N$24,488 in 2011 to N$240,020 in 2012 

5.3 Hartlief Corporation Ltd 

Agra holds 11% of the shares in this company. 

Dividends of N$89,439 were received during the year 

under review. 

5.4 Agra Oshivelo Retail (Pty) Ltd 

The company, in which Agra holds 84% of the issued 

share capital, was established during February 2011. 

The company has not traded for the period ending 31 

July 2012. 


Hierdie afdeling se aktiwiteite het in al hul 

onderafdelings (konsultasies, opleiding, navorsing, 

Swakaradienste- en skakeling) deurlopend 

toegeneem gedurende die jaar in oënskou, en kon 

daarin slaag om die jaar af te sluit deur die jaar-tot- 

datum verlies van N$910 000 wat begroot is, met 

N$241 000 te verminder tot ‘n verliessyfer van 

N$669 000. 

5. FILIALE EN ANDER BELEGGINGS 

5.1 Ondangwa Diensstasie (Edms) Bpk 

Hierdie maatskappy, waarin Agra 70% van die 

uitgereikte aandele hou, se omset het gestyg vanaf 

N$35,5 miljoen na N$41,3 miljoen (16,3%) 

Die toedeelbare wins na belasting het gedaal van 

N$394,274 in 2011 tot N$264,223 in 2012. 

5.2 Agra Eiendomme (Edms) Bpk 


uitgereikte aandele hou, is gestig in September 

2010. 

Die bruto inkomste van die maatskappy het gestyg 

van N$71,334 in 2011 tot N$489,406 in 2012. 

Die toedeelbare wins na belasting het toegeneem 

van N$24,488 in 2011 tot N$240,020 in 2012. 

5.3 Hartlief Korporasie Bpk 

Agra hou 11% van die aandele in hierdie 

maatskappy. Dividende ter waarde van N$89,439 

is ontvang gedurende die oorsigjaar. 

5.4 Agra Oshivelo Handel (Edms) Bpk 


uitgereikte aandele hou, is gestig in Februarie 

2011. 

Die maatskappy het tot en met 31 Julie 2012 nog 

geen handel gedryf nie. 

11

6. FINANCIAL RESULTS 



Gross profits increased by 8,3% for the group and by 

8,2% for the co-operative to N$185,5 million and 

N$182,6 million respectively. 

The Agra group achieved an increase of 22% in net 

profit before tax and distribution to members, of 

N$44,4 million (2011: N$36,3 million) and the co- 

operative an increase of 28% in net profit of N$43,9 

million (2011: N$34,2 million). 

6.1 Other income 

Increased by N$9,2 million as a result of: 


(Decrease)/Increase 


N$ 

(million) 

2011 

N$ 

(million) 

6. FINANSIELE RESULTATE 

Brutowinste het met 8,3% vir die groep en met 

8,2% vir die koöperasie toegeneem tot N$185,5 

miljoen en N$182,6 miljoen onderskeidelik. 

Die Agra groep het ‘n nettowins voor belasting en 

toedeling aan lede, van N$44,4 miljoen (2011: 

N$36,3 miljoen) behaal en die koöperasie ‘n netto 

wins van N$43,9 miljoen (2011: N$34,2 miljoen). 

6.1 Ander inkomste 

‘n Styging van N$9,2 miljoen as gevolg van: 

Difference 

Members loan adjustments 0,0 (0,9) 0,9 Ledefondse aanpassings 

Fair value adjustment on 

properties 0,0 3,7 (3,7) 

Fair value adjustment on 

financial assets 8,0 0,0 8,0 

Billike waarde aanpassing op 

eiendomme 

Billike waarde aanpassing op 

finansiele bates 

Rent received 8,3 7,5 0,8 Huur ontvang 

Interest received 5,3 4,5 0,8 Rente ontvang 

Bad debts recovered 1,3 1,2 0,1 Slegte skulde verhaal 

Other income 12,9 10,6 2,3 Ander inkomste 

6.2 Selling and marketing expenses 

Group selling and marketing expenses decreased 

by 12% (2011: an increase of 16%). 

6.3 Administrative Expenses 

Administration costs which consists mainly of 

computer, printing and administrative costs, 

increased by 14% (2011: 14%). 

6.4 Income tax 

The income tax charges amount to N$13,0 million 

for the group (2011: N$11,7 million) and N$12,4 

million for the co-operative (2011: N$11,1 million). 

35,8 26,6 9,2 

6.2 Verkoops- en bemarkingskoste 

Die groep se verkoops- en bemarkingskostes het 

afgeneem met 12% (2011: ’n toename van 16%). 

6.3 Administratiewe uitgawes 

Administratiewe uitgawes wat meestal bestaan uit 

rekenaar-, drukwerk- en administratiewe koste het 

gestyg met 14% (2011: 14%). 

6.4 Inkomstebelasting 

Die inkomstebelastingkoste beloop N$13,0 miljoen 

vir die groep (2011: N$11,7 miljoen) en N$12,4 

miljoen vir die koöperasie (2011: N$11,1 miljoen). 

12

6.5 Declaration of bonuses to members 



In accordance with the decision taken by the board 

of directors in November 2009, the full amount of 

net profit after tax is to be retained as part of the 

reserves which will be transferred to the public 

company “Agra Limited”, during the conversion 

process. 

7. CONSOLIDATED BALANCE SHEET 

7.1 Assets 

7.1.1 Property, plant and equipment 

The net value of property, plant and equipment for 

the group increased by N$9,8 million as a result of: 

Additions to land and buildings: 

Auas Valley shopping mall 

Oshivelo branch 

Okahandja auction pens 

Otjiwarongo branch 

Keetmanshoop branch 

Other retail branches 

Tsumeb branch 

Additions to vehicles 

Additions to operational equipment (shelving) 

Less depreciation charges 

Net additions 

7.1.2 Investment properties 

The value of investment properties increased by 

N$0,04 million to N$15,14 million (2011 N$15,1 

million.) 



N$ 

6.5 Verklaring van bonusse aan lede 

Volgens die besluit van die raad van direkteure in 

November 2009, is die volle bedrag van nettowins 

na belasting, behou as deel van reserwes en sal 

oorgedra word na die openbare maatskappy “Agra 

Beperk”, wanneer die omskeppingsproses 

afgehandel is. 

(million) Auas Valley inkoopsentrum 

0,2 

3,9 

0,5 

1,0 

0,2 

0,3 

0,2 

6,3 

1,5 

4,6 

(2,6) 

9,8 

7. GEKONSOLIDEERDE BALANSSTAAT 

7.1 Bates 

7.1.1 Eiendom, aanleg en toerusting 

Die netto waarde van die eiendom, aanleg en 

toerusting vir die groep het toegeneem met N$9,8 

miljoen as gevolg van: 

Toevoegings tot grond en geboue: 

Oshivelo tak 

Okahandja veilingskrale 

Otjiwarongo tak 

Keetmanshoop tak 

Ander handelstakke 

Tsumeb tak 

Toevoeging tot voertuie 

Toevoegings tot operasionele toerusting (rakke) 

Minus waardeverminderingskostes 

Netto toevoegings 

7.1.2 Beleggingseiendomme 

Die waarde van beleggingseiendomme het 

verhoog met N$0,04 miljoen na N$15,14 miljoen 

(2011 N$15,1 miljoen). 

13

7.1.3 Current assets 

Inventories: 



Stock on hand increased by N$23,1 million for the 

group and N$22,9 million for the co-operative in line 

with increased turnover figures and improved stock 

availability. 

Trade and other receivables: 

Trade and other receivables decreased by N$15,1 

million for the group and N$15,1 million for the co- 

operative due to an improvement in credit control 

mechanisms. 

7.2 Equity 

The group’s debt to equity ratio at 13% compared 

to 24% for the previous year reflects a great 

improvement on last year. Cognisance must be 

taken of the envisaged Capital Expenditure for the 

new year which will have a major influence on this 

Ratio. 

7.3 Cash Flow 

The Agra group reports a negative cash flow for 

2012 of N$2,5 million, compared to a positive cash 

flow in 2011 of N$11,7 million. This is mainly as a 

result of an increased investment in inventories of 

N$23 million, an additional investment in Hartlief of 

N$4 million and a prepayment on the Lafrenz 

property of N$3,6 million made during the year. 


7.1.3 Bedryfsbates 

Voorraad: 

Voorraad het toegeneem met N$23,1 miljoen vir 

die groep en met N$22,9 miljoen vir die 

koöperasie in ooreenstemming met verhoogde 

omsetsyfers en verbeterde voorraad op hande. 

Handelsrekeninge ontvangbaar: 

Die afname in handelsrekeninge ontvangbaar met 

N$15,1 miljoen vir die groep en N$15,1 miljoen vir 

die koöperasie was grootliks weens ‘n verbetering 

in die terugbetaling van debiteure voor jaareinde 

en die afname in omset van die lewende hawe 

afdeling vir die jaar. 

7.2 Ekwiteit 

Die groep se skuld tot ekwiteitsverhouding is 13% 

vergeleke met 24% die vorige jaar. Dit is ‘n 

verbetering op die vorige jaar. Die voorgenome 

kapitaaluitgawe vir die nuwe jaar moet in ag 

geneem word aangesien dit ‘n groot invloed het op 

hierdie verhouding. 

7.3 Kontantvloei 

Die Agra groep rapporteer ‘n negatiewe 

kontantvloei vir 2012 van N$2,5 miljoen, in 

vergelyking met ‘n positiewe kontantvloei in 2011 

van N$11,7 miljoen. Dit is hoofsaaklik as gevolg 

van verhoogde investering in voorraad van N$23 

miljoen, ‘n addisionele belegging van N$4 miljoen 

in Hartlief en ‘n vooruitbetaling van N$3,6 miljoen 

op die Lafrenz eiendom gedurende die jaar. 

14

8. FUTURE OUTLOOK 



The most important issue facing us in the near 

future is the conversion of Agra Cooperative Limited 

into a public company on 1 February 2013. 

Challenges are the physical handover of the share 

certificates to each and every Agra member who 

will be a shareholder of Agra Limited as from the 

date of conversion, as well as putting processes 

into place to identify those members whose address 

and other details have changed without informing 

Agra. 

The balance sheet of Agra will be strengthened 

considerably from a shareholders base of 

N$403 000 in Agra Cooperative Limited to N$102 

million in Agra Limited. 

It is also very important to realise that the net asset 

value of one Agra share has improved from an 

amount of N$1.17 in 2009 to N$1.70 at 31 July 

2012. 

Due to the very satisfactory growth of Agra’s 

operations in all divisions, it has become necessary 

to enlarge and upgrade most of our facilities, as 

most of our branches have outgrown their current 

available space. This means that major investments 

need to be initiated to ensure that our customer 

service and customer satisfaction is maintained and 

improved. 

The first of such major investments has been made 

as a consequence of the Windhoek branch having 

outgrown its existing facilities in the Auas Valley 

Shopping Mall. The fact that no more land could be 

acquired at acceptable costs, led to the decision to 

relocate the Windhoek branch to the Lafrenz 

extension in the North of Windhoek. Agra has 

purchased four erven, which will be consolidated 

and a brand new structure will be erected with 

adequate expansion possibilities and a design 

which will ensure a much improved service to all 

our customers. The completion date is expected to 

be November 2013. 


8. TOEKOMSVERWAGTINGE 

Die belangrikste aangeleentheid wat in die nabye 

toekoms voorlê, is die omskepping van Agra 

Koöperatief in ‘n openbare maatskappy op 1 

Februarie 2013. Uitdagings sluit in die fisiese 

oorhandiging van die aandelesertifikate aan elke 

enkele Agra lid wat ‘n aandeelhouer van Agra 

Beperk sal wees vanaf die datum van omskepping, 

sowel as om prosesse daar te stel om die lede op 

te spoor wie se addresse en ander besonderhede 

verander het sonder dat Agra ingelig is. 

Die balansstaat van Agra sal aansienlik versterk 

word van ‘n aandeelhouersbasis van N$403 000 in 

Agra Koöperatief Beperk tot N$102 miljoen in Agra 

Beperk. 

Dit is ook baie belangrik om te besef dat die netto 

bate waarde van een Agra-aandeel verbeter het 

van ‘n bedrag van N$1.17 in 2009 tot N$1.70 op 31 

Julie 2012. 

Die bevredigende groei in Agra se bedrywe in alle 

afdelings, het dit genoodsaak om die meeste van 

ons fasiliteite te vergroot en te verbeter, aangesien 

die meeste van ons takke uit hul huidige 

beskikbare spasie gegroei het. Dit beteken dat 

grootskaalse beleggings geinisieer moet word om 

kliëntetevredenheid te handhaaf en te verbeter. 

Die eerste van hierdie groot beleggings is reeds 

geoden as gevolg van die feit dat die Windhoek-tak 

uit sy bestaande fasiliteite in die Auas Valley 

Inkoopsentrum gegroei het. Die feit dat geen grond 

verkry kon word teen aanvaarbare kostes nie, het 

gelei tot die besluit om die Windhoek-tak te verskuif 

na die Lafrenz uitbreiding in die noorde van 

Windhoek. Agra het vier erwe gekoop wat 

saamgevoeg sal word en ‘n nuwe struktuur sal 

opgerig word met voldoende uitbreidings- 

moontlikhede en ‘n uitleg wat ‘n baie beter diens 

aan al ons kliënte moontlik maak. Die verwagte 

voltooiingsdatum is November 2013. 

15



Agra is and will remain an agriculturally oriented 

organisation, which also means that it is very 

susceptible to changing climate conditions and its 

effect on the agricultural producer of Namibia. 

Weather patterns change each year and cycles of 

good rainfall and good producer prices, are followed 

by drier periods with lower producer prices. It has 

been Agra’s strategy for the last twelve years to 

diversify some of its business interests in non- 

agricultural investments, so as to counteract the 

agricultural cycles with steady income streams not 

dependant on the weather conditions. 

The upgrading project of the Auas Valley Shopping 

Mall in 1999 was one of those non-agricultural 

Investments which ensured a steady income for 

Agra over the last 12 years. It has now once again 

become necessary to embark on a major upgrading 

exercise for the Auas Valley Shopping Mall, so as 

to retain our current anchor tenants and to ensure 

the future existence of the mall. 

This major upgrade will add about 10 500 square 

meters of trading space. In addition it is envisaged 

to build a brand new six-storey office block to 

accommodate some of our existing tenants and to 

provide up-market office accommodation for new 

tenants, who are looking for space outside the city 

centre. 

Agra is currently in the process of obtaining the 

necessary funding for this very ambitious project, 

which will commence during February/March 2013 

9. BUDGETS FOR THE 2012/2013 YEAR 

ENDING 31 JULY 2013 

9.1 Capital expenditure budget 

Fixed property upgrading and extensions to existing 

branches, Auas Valley Shopping mall and the new 

branch in the Lafrenz industrial area make up the 

bulk of Agra’s capital expenditure budget. Below 

the summary of the capital expenditure budget: 


Agra is en sal ‘n landbougeoriënteerde organisasie 

bly, wat ook beteken dat dit baie onderhewig is aan 

veranderende klimaatsomstandighede en die effek 

daarvan op die landbouprodusent van Namibië. 

Weerpatrone verander elke jaar en siklusse van 

goeie reënval en goeie produsentepryse word 

gevolg deur droër periods met laer 

produsentepryse. Dit was Agra se strategie vir die 

afgelope twaalf jaar om sommige van ons 

besigheidsbelange te diversifiseer in nie-landbou 

beleggings, om landbousiklusse teen te werk met 

inkomstebronne wat nie afhanklik is van die 

weersomstandighede nie. 

Die opgradering van die Auas Valley 

Inkoopsentrum in 1999 was een van die nie- 

landboubeleggings wat vir Agra oor die afgelope 12 

jaar ‘n konstante inkomste ingebring het. Dit het 

nou weer eens nodig geword om ‘n grootskaalse 

opgraderingspoging vir die Auas Valley 

Inkoopsentrum aan te pak, om sodoende ons 

huidige ankerhuurders te behou en die 

voortbestaan van die sentrum te verseker. 

Hierdie grootskaalse opgradering sal ongeveer 10 

500 vierkante meter handelspasie byvoeg. 

Bykomend word beplan om ‘n splinternuwe ses- 

verdieping kantoorblok te bou wat sommige van 

ons huidige huurders sal akkommodeer en modern 

kantoorakkommodasie beskikbaar sal maak vir 

nuwe huurders wat spasie buite die middestad 

soek. 

Agra is tans in die proses om die nodige 

befondsing te kry vir hierdie baie ambisieuse projek 

wat gedurende Februarie/Maart 2013 sal begin. 

9. BEGROTINGS VIR DIE 2012/2013 JAAR 

GEËINDIG 31 JULIE 2013 

9.1 Kapitale uitgawe begroting 

Die opgradering en uitbreiding van vaste eiendom, 

van bestaande takke, Auas Valley Inkoopsentrum 

en die nuwe tak in die Lafrenz industriële area, 

maak die grootste gedeelte uit van Agra se kapitale 

uitgawebegroting. Hier volg ‘n opsomming van die 

kapitale uitgawebegroting: 

16



Upgrading and development of fixed property 147,0 


2012/2013 2011/2012 

N$ million N$ million 

33,0 

Opgradering en ontwikkeling 

van vaste eiendom 

Information technology 1,9 2,5 Inligtingstegnologie 

Commercial vehicles 1,9 0,2 Handelsvoertuie 

Office furniture and equipment 0,3 0,2 Kantoormeubels en toerusting 

Operational assets 9,5 4,7 Operasionele bates 

Total 160,6 40,6 Totaal 

9.2 Operational budget 

The proposed operational budget for the year 

2012/2013 can be summarised as follows: 

Gross value of livestock transactions 

Retail/wholesale/division 

Professional services 

Total turnover 

Cost of sales 

Gross profit 

Other income 

Gross income 

Less: 

2012/ 

2013 

N$ 

Million 

667,2 

1072,6 

70,8 

1 810,6 

1 630,4 

180,2 

59,2 

239,4 

2011/ 


N$ 

Million 

958,2 

839,7 

16,3 

1 814,2 

1 649,5 

164,7 

56,4 

221,1 

9.2 Operasionele begroting 

Die voorgestelde operasionele begroting vir die 

jaar 2012/2013 kan soos volg opgesom word: 

Change 

(30.4)% 

27.7% 

334.4% 

(0.2)% 

(1.2)% 

9.4% 

5.0% 

8.3% 

Bruto waarde van lewendehawe 

transaksies 

Klein-/groothandel/afdeling 

Professionele dienste 

Totale omset 

Koste van verkope 

Bruto wins 

Ander inkomste 

Bruto inkomste 

Minus: 

Inventory costs 6,0 3,4 76.5% Voorraadkoste 

Marketing costs 4,9 4,3 14.0% Bemarkingskoste 

Selling and distribution cost 14,6 20,8 (29.8)% Verkoop en verspreidingskoste 

Building costs 32,0 26,6 20.3% Gebouekoste 

Transport costs 12,3 8,8 39.8% Vervoerkoste 

Personnel costs 115,1 95,1 21.0% Personeelkoste 

Directors costs 1,1 0,9 22.2% Direkteurskoste 

Administration costs 24,4 23,6 3.4% Administratiewe koste 

Total expenses 

210,4 

183,5 

14.7% 

Totale uitgawes 

17

Profit before finance charges 




29,0 

37,6 

(22.9)% 

Wins voor finansieringskostes 

Finance charges 8,1 0,6 1 250.0% Finansieringskostes 

Net profit before tax 

10. CONCLUSION 

20,9 

Agra has once again been able to report satisfactory 

results to its members and shareholders. One of the 

highlights of the period under review was the opening 

of a fully-fledged Agra Branch in Oshivelo, which is 

the second Agra branch north of Tsumeb, the other 

being Opuwo, where a major upgrade is planned for 

the next financial year. 

The year ahead will once again be full of challenges 

but also opportunities. As management and staff of 

Agra we are prepared to live up to Agra’s newly 

defined purpose: 

Creating Prosperity, improving quality of life 

and our Vision 2015: 

to be a Resource for Growth 

gives us the direction and motivation to achieve our 

targets for 2015 : 

• Group turnover of N$3 600 million 

• Earnings before interest and tax of N$126 million 

• Increasing the number of employees to 850 

• Being among the top 3 “Best Company to Work 

For” in Namibia 

• Utilising 0.2% of turnover for corporate social 

investment 

37,0 

% Netto wins voor belasting 

10. SLOT 

Agra het weer eens daarin geslaag om 

bevredigende resultate aan sy lede en 

aandeelhouers te rapporteer. Een van die 

hoogtepunte in die jaar onder oorsig was die 

opening van 'n volwaardige Agra tak in Oshivelo, 

wat die tweede Agra tak noord van Tsumeb is – die 

ander tak is Opuwo, waar grootskaalse 

opgradering beplan word vir die volgende 

finansiële jaar. 

Die jaar vorentoe sal ook weer vol uitdagings wees, 

maar ook vol geleenthede. As bestuur en 

personeel van Agra is ons bereid om te streef na 

Agra se nuutgeformuleerde doel: 

Om welvaart te skep en lewenskwaliteit te 

verbeter, 

en ons Visie 2015: 

om 'n hulpbron vir groei te wees 

gee ons die rigting en motivering om ons doelwitte 

vir 2015 te bereik nl.: 

• ‘n Groepsomset van N$3 600 miljoen 

• Verdienste voor rente en belasting van N$126 

miljoen 

• Die aantal werknemers te vermeerder tot 850 

• Om binne die BCTWF (Beste Maatskappy om 

Voor te Werk) se Top 3 in Namibië te wees 

• Om 0,2% van ons omset in sosiale beleggings 

te herbelê 

18



Last but not least we would like to thank our members 

and customers for their support. Without you Agra 

would not have been able to achieve another year of 

substantial growth. 

We are looking forward to being of service to you 

once again in the years to come. 

I would also like to thank the Agra Board of Directors 

for their input and guidance as well as my 

management team members, who were a continual 

source of inspiration and support. 

PM KAZMAIER 

CHIEF EXECUTIVE OFFICER 

(HOOF UITVOERENDE BEAMPTE) 


Ten laaste wil ons, ons lede en kliënte bedank vir u 

ondersteuning. Sonder u sou Agra nie in staat 

wees om nog ‘n jaar van aansienlike groei te 

behaal nie. 

Ons sien uit daarna om u voorts tot diens te wees 

in die komende jare. 

Ek wil ook die Agra Raad van Direkteure bedank 

vir hul insette en leiding asook my 

bestuurspanlede, wat ‘n deurlopende bron van 

inspirasie en ondersteuning was. 

19



Directors' Responsibilities and Approval 

The directors are responsible for the preparation, integrity and fair presentation of the financial statements of Agra 

(Co-operative) Limited and its subsidiaries. 

The annual financial statements are prepared in accordance with International Financial Reporting Standards and 

are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent 

judgments and estimates. 

The directors acknowledge that they are ultimately responsible for the system of internal financial control 

established by the group and place considerable importance on maintaining a strong control environment. To 

enable the directors to meet these responsibilities, the board set standards for internal control aimed at reducing the 

risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within 

a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an 

acceptable level of risk. These controls are monitored throughout the group and all employees are required to 

maintain the highest ethical standards in ensuring the group’s business is conducted in a manner that in all 

reasonable circumstances is above reproach. The focus of risk management in the group is on identifying, 

assessing, managing and monitoring all known forms of risk across the group. While operating risk cannot be fully 

eliminated, the group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and 

ethical behaviour are applied and managed within predetermined procedures and constraints. 

The directors are of the opinion, based on the information and explanations given by management, that the system 

of internal control provides reasonable assurance that the financial records may be relied on for the preparation of 

the annual financial statements. However, any system of internal financial control can provide only reasonable, and 

not absolute, assurance against material misstatement or loss. 

The directors have reviewed the group’s cash flow forecast for the year to 31 July 2013 and, in the light of this 

review and the current financial position, they are satisfied that the group has or has access to adequate resources 

to continue in operational existence for the foreseeable future. 

The external auditors are responsible for independently reviewing and reporting on the group's annual financial 

statements. The annual financial statements have been examined by the group's external auditors and their report 

is presented on pages 21 to 22. 

The annual financial statements set out on pages 23 to 86, which have been prepared on the going concern basis, 

were approved by the board and were signed on its behalf by: 

Director Director 

Windhoek 

30 October 2012 

20

To the members of Agra (Co-operative) Limited 

Independent Auditors' Report 

We have audited the consolidated annual financial statements of Agra (Co-operative) Limited and its subsidiaries 

which comprise the consolidated and separate statement of financial position as at 31 July 2012, and the 

consolidated and separate statement of comprehensive income, statement of changes in equity and consolidated 

and separate statement of cash flows for the year then ended, and a summary of significant accounting policies and 

other explanatory notes, and the directors' report, as set out on pages 23 to 84. 

Directors' Responsibility for the Annual Financial Statements 

The co-operative’s directors are responsible for the preparation and fair presentation of these annual financial 

statements in accordance with International Financial Reporting Standards, and for such internal control as the 

directors determine is necessary to enable the preparation of annual financial statements that are free from material 

misstatements, whether due to fraud or error. 

Auditors' Responsibility 

Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted 

our audit in accordance with International Standards on Auditing. Those standards require that we comply with 

ethical requirements and plan and perform the audit to obtain reasonable assurance whether the annual financial 

statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual 

financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the 

risks of material misstatement of the annual financial statements, whether due to fraud or error. In making those 

risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of 

the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but 

not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also 

includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates 

made by management, as well as evaluating the overall presentation of the annual financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit 

opinion. 

Opinion 

In our opinion, the annual financial statements present fairly, in all material respects, the consolidated and separate 

financial position of Agra (Co-operative) Limited and its subsidiaries as at 31 July 2012, and its consolidated and 

separate financial performance and its consolidated and separate cash flows for the year then ended in accordance 

with International Financial Reporting Standards, and the requirements of the Companies Act of Namibia. 

Other matter 

Without qualifying our opinion, we draw attention to the fact that supplementary information set out on page 72 to 

73 does not form part of the annual financial statements and is presented as additional information. We have not 

audited this information and accordingly do not express an opinion thereon. 

21

Independent Auditors' Report (continued) 

________________________________ 

PricewaterhouseCoopers 

Registered Accountants and Auditors 

Chartered Accountants (Namibia) 

Per: Louis van der Riet 

Partner 

Windhoek, 30 October 2012 

PricewaterhouseCoopers, 344 Independence Avenue, Windhoek, P O Box 1571, Windhoek, Namibia 

Practice Number 9406, T: 264 (61) 284 1000, F: +264 (61) 284 1001, www.pwc.com/na 

Managing Partner: R Nangula Uaandja 

Partners: Stephen D Viljoen, Carl P van der Merwe, Louis van der Riet (Chief Operating Officer), Ansie EJ Rossouw, Seretta N Lombaard, Stefan Hugo, Chantell N Husselmann 

22



Directors' Report 

The directors submit their report for the year ended 31 July 2012. 

1. Review of activities 

Main business and operations 

Agra (Co-operative) Limited is the largest multipurpose agricultural co-operative in the country. Agra has branches 

throughout Namibia providing farming inputs and equipment as well as pet accessories, camping equipment, 

gardening and household goods. Agra is also the largest livestock organisation in Namibia. 

The operating results and state of affairs of the co-operative are fully set out in the attached annual financial 

statements and do not in our opinion require any further comment. 

Net profit of the group was N$ 31.4 million (2011: N$ 24.5 million profit), after taxation of N$ 13 million (2011: N$ 

11.7 million). 

Net profit of the co-operative was N$ 31.5 million (2011: N$ 23.1 million profit), after taxation of N$ 12.4 

million (2011: N$ 11.1 million). 

2. Going concern 

The annual financial statements have been prepared on the basis of accounting policies applicable to a going 

concern. This basis presumes that funds will be available to finance future operations and that the realisation of 

assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of 

business. 

3. Events after the reporting period 

The members of the co-operative instructed the board of directors to convert the co-operative into a public 

company. 

The Ministry announced the approval of the coversion of the co-operative into a public company during October 

2012. The conversion is effective 1 February 2013. 

Apart from the above, no circumstances have arisen, or events occurred, between the financial year end date and 

the date of this report in respect of matters which would require adjustment to, or disclosure in, the annual financial 

statements of the co-operative and the group, or which should be disclosed to the members through some other 

medium, except as disclosed elsewhere in the financial statements. 

4. Authorised and issued share capital 

Share capital of N$ 0 (2011: N$0,00) was raised and N$ 3,000 (2011: N$3,000 ) has been redeemed during the 

year. 

23

5. Directors 



Directors' Report 

The directors of the co-operative during the year and to the date of this report are as follows: 

Name 

R van der Merwe (Chairman) 

BH Mouton (Vice chairman) 

LC van Wyk 

P Schonecke 

S Wilckens 

JW Visagie 

6. Supervisory committee 

Name 

JH Niewoudt (Chairman) 

SK Shikongo 

H Stroh 

7. Interest in subsidiaries 

Name of subsidiary Nature of business Percentage holding 

Ondangwa Service Station (Pty) Ltd Selling of retail products and fuel. 70 % 

Auas Veterinary and Medical Suppliers (Pty) Retailing and wholesale of 

100 % 

Ltd 

veterinary products. 

"A" Shares in Guard Risk Cell Insurance 100 % 

Agra Properties (Pty) Ltd Estate agency, auctioneering of 

property and property investors. 

100 % 

Agra Oshivelo Retail (Pty) Ltd General retail. 84 % 

The co-operative’s interest in the net profit after tax of the subsidiaries amounted to N$ 1.8 million (2011: N$ 0.4 

million). Please refer to note of the financial statements for more information concerning investments in 

subsidiaries. 

8. Auditors 

PricewaterhouseCoopers will continue in office in accordance with section 278(2) of the Companies Act of Namibia. 

24

Assets 



Statement of Financial Position 

Group Co-operative 

2012 2011 2012 2011 

Note(s) N$ '000 N$ '000 N$ '000 N$ '000 

Non-Current Assets 

Investment property 4 15,142 15,104 15,142 15,104 

Property, plant and equipment 5 95,318 85,523 95,214 85,452 

Intangible assets 6 743 622 743 622 

Investments in subsidiaries 7 - - 830 144 

Financial assets measured at fair value 

through profit or loss 

8 16,596 4,486 16,596 4,486 

Deferred tax 9 23,573 19,924 23,480 19,840 

151,372 125,659 152,005 125,648 

Current Assets 

Inventories 12 116,095 93,002 115,314 92,463 

Current tax receivable 21&30 619 643 532 629 

Trade and other receivables 13 64,781 79,862 64,063 79,130 

Prepayments 11 3,681 - 3,681 - 

Cash and cash equivalents 14 33,002 35,528 32,247 33,401 

218,178 209,035 215,837 205,623 

Total Assets 369,550 334,694 367,842 331,271 

Equity and Liabilities 

Equity 

Equity Attributable to Equity 

Holders of Parent 

Share capital 15 403 406 403 406 

Other reserves 16 21,532 21,532 21,532 21,532 

Retained income 112,106 80,779 109,665 78,147 

134,041 102,717 131,600 100,085 

Non-controlling interest 133 173 - - 

134,174 102,890 131,600 100,085 

25

Liabilities 



Statement of Financial Position 



Note(s) N$ '000 N$ '000 N$ '000 N$ '000 

Non-Current Liabilities 

Borrowings 17 2,296 5,216 2,296 5,216 

Retirement benefit obligation 10 36,161 34,171 36,161 34,171 

Deferred tax 9 21,827 19,636 21,805 19,614 

60,284 59,023 60,262 59,001 

Current Liabilities 

Borrowings 17 14,499 19,330 16,714 20,854 

Current tax payable 21&30 379 462 - - 

Trade and other payables 22 116,807 109,138 115,859 107,480 

Severance pay provision 18 973 961 973 961 

Members' funds 19 41,272 41,704 41,272 41,704 

Bonus share 20 1,162 1,186 1,162 1,186 

175,092 172,781 175,980 172,185 

Total Liabilities 235,376 231,804 236,242 231,186 

Total Equity and Liabilities 369,550 334,694 367,842 331,271 

26



Statement of Comprehensive Income 



Note(s) N$ '000 N$ '000 N$ '000 N$ '000 

Revenue 1,073,052 953,325 1,031,738 917,800 

Cost of sales (887,550) (782,010) (849,181) (749,078) 

Gross profit 185,502 171,315 182,557 168,722 

Other income 28 30,513 22,100 28,417 19,232 

Operating expenses (176,232) (160,787) (171,659) (157,338) 

Operating profit 23 39,783 32,628 39,315 30,616 

Investment income 24 5,287 4,504 5,223 4,454 

Finance costs 25 (656) (880) (656) (876) 

Profit before taxation 44,414 36,252 43,882 34,194 

Income tax expense 26 (13,009) (11,722) (12,364) (11,143) 

Profit for the year 31,405 24,530 31,518 23,051 

Other comprehensive income - - - - 

Total comprehensive income 31,405 24,530 31,518 23,051 

Total comprehensive income 

attributable to: 

Owners of the parent 31,327 24,461 31,518 23,051 


31,405 24,530 31,518 23,051 

Profit attributable to : 

Owners of the parent 31,327 24,461 31,518 23,051 


31,405 24,530 31,518 23,051 

27



Statement of Changes in Equity 

Share capital Other NDR Retained 

income 

Total 

attributable 

to equity 

holders of 

the group / 

co-operative 

Noncontrolling 

interest 

Total equity 

N$ '000 N$ '000 N$ '000 N$ '000 N$ '000 N$ '000 

Group 

Balance at 01 August 2010 408 17,881 59,970 78,259 170 78,429 

Changes in equity 

Total comprehensive income for the year - - 24,461 24,461 69 24,530 

Transfer between reserves - 3,652 (3,652) - - - 

Shares redeemed (2) - - (2) - (2) 

Dividend received - - - - (66) (66) 

Total changes (2) 3,652 20,809 24,459 3 24,462 

Balance at 01 August 2011 406 21,533 80,779 102,718 173 102,891 


Total comprehensive income for the year - - 31,327 31,327 78 31,405 


Dividend paid - - - - (118) (118) 

Total changes (3) - 31,327 31,324 (40) 31,284 

Balance at 31 July 2012 403 21,533 112,106 134,042 133 134,175 

Note(s) 15 16 

28



Statement of Changes in Equity 

Share capital Other NDR Retained 

income 

Total 

attributable 

to equity 

holders of 

the group / 

co-operative 

Minority 

interest 

Total equity 

N$ '000 N$ '000 N$ '000 N$ '000 N$ '000 N$ '000 

Co-operative 

Balance at 01 August 2010 408 17,881 58,748 77,037 - 77,037 


Total comprehensive income for the year - - 23,051 23,051 - 23,051 

Transfer between reserves - 3,652 (3,652) - - - 


Total changes (2) 3,652 19,399 23,049 - 23,049 

Balance at 01 August 2011 406 21,533 78,147 100,086 - 100,086 


Total comprehensive income for the year - - 31,518 31,518 - 31,518 


Total changes (3) - 31,518 31,515 - 31,515 

Balance at 31 July 2012 403 21,533 109,665 131,601 - 131,601 

Note(s) 15 16 

29

Cash flows from operating activities 



Statement of Cash Flows 



Note(s) N$ '000 N$ '000 N$ '000 N$ '000 

Cash receipts from customers 1,058,710 961,106 1,017,073 926,089 

Cash paid to suppliers and employees (1,026,072) (916,283) (984,676) (883,920) 

Cash generated from/ (used in) 

operations 

29 32,638 44,823 32,397 42,169 

Investment income 5,287 4,504 5,223 4,454 

Dividends paid to Minority Shareholders (118) (66) - - 

Finance costs (656) (880) (656) (876) 

Income tax paid 30 (14,526) (10,441) (13,716) (10,313) 

Net cash from operating activities 22,625 37,940 23,248 35,434 

Cash flows from investing activities 

Purchase of property, plant and 

equipment 

5 (12,519) (11,377) (12,459) (11,372) 

Proceeds on sale of property, plant and 

equipment 

5 40 68 40 68 

Purchase of investment property 4 (39) - (39) - 

Proceeds on sale of investment property 4 - 735 - 736 

Purchase of other intangible assets 6 (347) (163) (347) (162) 

Purchase of financial assets 8 (4,076) - (4,076) - 

Net cash from investing activities (16,941) (10,737) (16,881) (10,730) 

Cash flows from financing activities 

Reduction of share capital or shares 

redeemed 

15 (3) (2) (3) (2) 

Repayment of borrowings (7,751) (15,080) (7,062) (13,549) 

Movement in members' funds (432) (442) (432) (442) 

Movement in bonus share (24) (23) (24) (23) 

Net cash from financing activities (8,210) (15,547) (7,521) (14,016) 

Total cash and cash equivalents 

movement for the year 

Cash and cash equivalents at the 

beginning of the year 

Total cash and cash equivalents at 

end of the year 

(2,526) 11,656 (1,154) 10,688 

35,528 23,870 33,401 22,713 

14 33,002 35,526 32,247 33,401 

30

1. Basis of preparation 



Accounting Policies 

The consolidated annual financial statements have been prepared in accordance with International Financial 

Reporting Standards, and IFRIC Interpretations. The consolidated annual financial statements have been 

prepared on the historical cost basis, and incorporate the principal accounting policies set out below. They are 

presented in Namibian Dollars. 

These accounting policies are consistent with the previous period. 

1.1 Consolidation 

Basis of consolidation 

The consolidated annual financial statements incorporate the annual financial statements of the co-operative 

and all entities, including special purpose entities, which are controlled by the co-operative. 

Control exists when the co-operative has the power to govern the financial and operating policies of an entity so 

as to obtain benefits from its activities. 

Subsidiaries 

Subsidiaries are all entities (including special purpose entities) over which the group has the power to govern the 

financial and operating policies generally accompanying a shareholding of more than one half of the voting 

rights. The existence and effect of potential voting rights that are currently exercisable or convertible are 

considered when assessing whether the group controls another entity. Subsidiaries are fully consolidated from 

the date on which control is transferred to the group. They are de-consolidated from the date that control ceases. 

The purchase method of accounting is used to account for the acquisition of subsidiaries by the group. The cost 

of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities 

incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable 

assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially 

at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the 

cost of acquisition over the fair value of the group’s share of the identifiable net assets acquired is recorded as 

goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the 

difference is recognised directly in the income statement Inter-company transactions, balances and unrealised 

gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. 

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies 

adopted by the group. 

The results of subsidiaries are included in the consolidated annual financial statements from the effective date of 

acquisition to the effective date of disposal. 

Transactions and minority interests 

The group applies a policy of treating transactions with minority interests as transactions with parties external to 

the group. Disposals to minority interests result in gains and losses for the group and are recorded in the income 

statement. Purchases from minority interests result in goodwill, being the difference between any consideration 

paid and the relevant share acquired of the carrying value of net assets of the subsidiary. 

Adjustments are made when necessary to the annual financial statements of subsidiaries to bring their 

accounting policies in line with those of the group. 

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. 

Non-controlling interests in the net assets of consolidated subsidiaries are identified and recognised separately 

from the group's interest therein, and are recognised within equity. Percentages of subsidiaries attributable to 

non-controlling interests are allocated to the non-controlling interest even if this results in a debit balance being 

recognised for non-controlling interest. 

31

1.1 Consolidation (continued) 




Transactions which result in changes in ownership levels, where the group has control of the subsidiary both 

before and after the transaction are regarded as equity transactions and are recognised directly in the statement 

of changes in equity. 

The difference between the fair value of consideration paid or received and the movement in non-controlling 

interest for such transactions is recognised in equity attributable to the owners of the parent. 

Where a subsidiary is disposed of and a non-controlling shareholding is retained, the remaining investment is 

measured to fair value with the adjustment to fair value recognised in profit or loss as part of the gain or loss on 

disposal of the controlling interest. 

Business combinations 

The group accounts for business combinations using the acquisition method of accounting. The cost of the 

business combination is measured as the aggregate of the fair values of assets given, liabilities incurred or 

assumed and equity instruments issued.Costs directly attributable to the business combination are expensed as 

incurred, except the costs to issue debt which are amortised as part of the effective interest and costs to issue 

equity which are included in equity. 

Contingent consideration is included in the cost of the combination at fair value as at the date of acquisition. 

Subsequent changes to the assets, liabilities or equity which arise as a result of the contingent consideration are 

not affected against goodwill, unless they are valid measurement period adjustments. 

The acquiree's identifiable assets, liabilities and contingent liabilities which meet the recognition conditions of 

IFRS 3 Business Combinations are recognised at their fair values at acquisition date, except for non-current 

assets (or disposal group) that are classified as held-for-sale in accordance with IFRS 5 Non-current Assets 

Held-For-Sale and discontinued operations, which are recognised at fair value less costs to sell. 

Contingent liabilities are only included in the identifiable assets and liabilities of the acquiree where there is a 

present obligation at acquisition date. 

On acquisition, the group assesses the classification of the acquiree's assets and liabilities and reclassifies them 

where the classification is inappropriate for group purposes. This excludes lease agreements and insurance 

contracts, whose classification remains as per their inception date. 

Non-controlling interest arising from a business combination is measured either at their share of the fair value of 

the assets and liabilities of the acquiree or at fair value. The treatment is not an accounting policy choice but is 

selected for each individual business combination, and disclosed in the note for business combinations. 

In cases where the group held a non-controlling shareholding in the acquiree prior to obtaining control, that 

interest is measured to fair value as at acquisition date. The measurement to fair value is included in profit or 

loss for the year. Where the existing shareholding was classified as an available-for-sale financial asset, the 

cumulative fair value adjustments recognised previously to other comprehensive income and accumulated in 

equity are recognised in profit or loss as a reclassification adjustment. 

Goodwill is determined as the consideration paid, plus the fair value of any shareholding held prior to obtaining 

control, plus non-controlling interest and less the fair value of the identifiable assets and liabilities of the 

acquiree. 

Goodwill is not amortised but is tested on an annual basis for impairment. If goodwill is assessed to be impaired, 

that impairment is not subsequently reversed. 

Goodwill arising on acquisition of foreign entities is considered an asset of the foreign entity. In such cases the 

goodwill is translated to the functional currency of the group at the end of each reporting period with the 

adjustment recognised in equity through to other comprehensive income. 

32




1.2 Significant judgements and sources of estimation uncertainty 

In preparing the consolidated annual financial statements, management is required to make estimates and 

assumptions that affect the amounts represented in the consolidated annual financial statements and related 

disclosures. Use of available information and the application of judgement is inherent in the formation of 

estimates. Actual results in the future could differ from these estimates which may be material to the 

consolidated annual financial statements. Significant judgements include: 

Trade receivables 

The group assesses its trade receivables for impairment at each balance sheet date. In determining whether an 

impairment loss should be recorded in the profit or loss, the group makes judgements as to whether there is 

observable data indicating a measurable decrease in the estimated future cash flows from a financial asset. 

The impairment for trade receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted 

for national and industry-specific economic conditions and other indicators present at the reporting date that 

correlate with defaults on the portfolio. These annual loss ratios are applied to loan balances in the portfolio and 

scaled to the estimated loss emergence period. 

Financial assets 

If the market for a financial instrument is not active, an group establishes fair value by using a valuation 

technique. Valuation techniques include using recent arm’s length market transactions between knowledgeable, 

willing parties, if available, reference to the current fair value of another instrument that is substantially the same, 

discounted cash flow analysis and net asset value. The subsequent measurement of the financial asset and the 

subsequent recognition of gains and losses is consistent with the requirements of IFRS 9. The same information 

may not be available at each measurement date. For the valuation of the investment in unlisted shares, the 

company used the net asset value of the company for valuation purposes. 

Allowance for slow moving, damaged and obsolete inventory 

An allowance for inventory to write inventory down to the lower of cost or net realisable value. Management have 

made estimates of the selling price and direct cost to sell on certain inventory items. The write down is included 

in the operation profit note. 

Fair value estimation 

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance 

sheet date. The quoted market price used for financial assets held by the group is the current bid price. 

The fair value of financial instruments that are not traded in an active market (for example, over-the counter 

derivatives) is determined by using valuation techniques. The group uses a variety of methods and makes 

assumptions that are based on market conditions existing at each balance sheet date. Quoted market prices or 

dealer quotes for similar instruments are used for long-term debt. Other techniques, such as estimated 

discounted cash flows or net asset value, are used to determine fair value for the remaining financial 

instruments. The fair value of interest rate swaps is calculated as the present value of the estimated future cash 

flows. The fair value of forward foreign exchange contracts is determined using quoted forward exchange rates 

at the end of the reporting period. 

The carrying value less impairment provision of trade receivables and payables are assumed to approximate 

their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the 

future contractual cash flows at the current market interest rate that is available to the group for similar financial 

instruments. 

33




1.2 Significant judgements and sources of estimation uncertainty (continued) 

Impairment testing 

The recoverable amounts of cash-generating units and individual assets have been determined based on the 

higher of value-in-use calculations and fair values less cost to sell. These calculations require the use of 

estimates and assumptions. It is reasonably possible that the assumption may change which may then impact 

our estimations and may then require a material adjustment to the carrying value of goodwill and tangible assets. 

The group reviews and tests the carrying value of assets when events or changes in circumstances suggest that 

the carrying amount may not be recoverable. In addition, goodwill is tested on an annual basis for impairment. 

Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of 

other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared of 

expected future cash flows for each group of assets. Expected future cash flows used to determine the value in 

use of goodwill and tangible assets are inherently uncertain and could materially change over time. They are 

significantly affected by a number of factors. 

Provisions 

Provisions were raised and management determined an estimate based on the information available. 

Expected manner of realisation for deferred tax 

Deferred tax is provided for on the fair value adjustments of investment properties based on the expected 

manner of recovery, i.e. sale or use. This manner of recovery affects the rate used to determine the deferred tax 

liability. Refer note 9 – Deferred tax . 

Taxation 

Judgement is required in determining the provision for income taxes due to the complexity of legislation. There 

are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary 

course of business. The group recognises liabilities for anticipated tax audit issues based on estimates of 

whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts 

that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period 

in which such determination is made. 

The group recognises the net future tax benefit related to deferred income tax assets to the extent that it is 

probable that the deductible temporary differences will reverse in the foreseeable future. Assessing the 

recoverability of deferred income tax assets requires the group to make significant estimates related to 

expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from 

operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and 

taxable income differ significantly from estimates, the ability of the group to realise the net deferred tax assets 

recorded at the end of the reporting period could be impacted. 

34




1.2 Significant judgements and sources of estimation uncertainty (continued) 

Members' Funds 

The directors have discounted the members' fund at 5.6% (2011: 5.7%) which equals the government bond yield 

in South Africa. Given that there is no well developed bond market in Namibia, the directors deem this rate 

appropriate in Namibia as well, since a liability is being valued, an adjustment for risk is not necessary. 

Date and demographic assumptions 

• Number of members 4,397 4,549 

• Average Age 55 55 

• Mortality 2 % pa 2 % pa 

• Discount rate 5.6 % 5.7 % 

• Time before cessation of farming 

4 yrs 4 yrs 

activities 

• Settlement note for next 5 years as a 

result of resignation, cessation and 

redemption 

Post employment medical obligation 

0% 0% 

The provision for the post-retirement medical obligation is actuarially determined. A new valuation was obtained 

from Strategic Actuarial Partners Namibia (Pty) Ltd during July 2012. The valuation is dependent on the life 

expectancy, as well as deaths and resignations of employees during the financial year. The healthcare inflation 

factor also effected the valuation, which will also change over time, thus influencing future valuations. 

Severance pay 

The provision for severance pay, as required by the labour act was raised during the year and is actuarially 

determined. A new valuation was obtained from Strategic Actuarial Partners Namibia (Pty) Ltd during July 2012. 

The valuation is dependent on the life expectancy, as well as deaths and resignations of employees during the 

financial year. The provision is required in respect of retirements or resignations at the age of 65, unfair 

dismissal and death. 

1.3 Investment property 

The co-operative owns property that is held to earn long-term rental income and for capital appreciation. This 

property is not occupied by the co-operative. 

Investment property is recognised as an asset when, and only when, it is probable that the future economic 

benefits that are associated with the investment property will flow to the enterprise, and the cost of the 

investment property can be measured reliably. 

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement. 

Costs include costs incurred initially and costs incurred subsequently to add to, or to replace a part of, or service 

a property. If a replacement part is recognised in the carrying amount of the investment property, the carrying 

amount of the replaced part is derecognised. 

Fair value 

Subsequent to initial measurement investment property is measured at fair value representing the open market 

value determined annually by external valuers/directors. Fair value is based on active market prices, adjusted, if 

necessary, for any differences in the nature, location or condition of the specific asset. If this information is not 

available, the co-operative uses alternative valuation methods such as recent prices on less active markets or 

discounted cash flow projections. These valuations are reviewed annually. 

35

1.3 Investment property (continued) 




A gain or loss arising from a change in fair value is included in net profit or loss for the period in which it arises. 

There are no property interests held under operating leases which are recognised as investment property. 

1.4 Property, plant and equipment 

The cost of an item of property, plant and equipment is recognised as an asset when: 

it is probable that future economic benefits associated with the item will flow to the co-operative; and 

the cost of the item can be measured reliably. 

Property, plant and equipment is initially measured at cost. 

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs 

incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying 

amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. 

All other repairs and maintenance are charged to the income statement during the financial period in which they 

are incurred. 

The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located 

is also included in the cost of property, plant and equipment, where the entity is obligated to incur such 

expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than 

the production of inventories. 

Major spare parts and stand by equipment which are expected to be used for more than one period are included 

in property, plant and equipment. In addition, spare parts and stand by equipment which can only be used in 

connection with an item of property, plant and equipment are accounted for as property, plant and equipment. 

Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and 

which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant 

and equipment. Any remaining inspection costs from the previous inspection are derecognised. 

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. 

Land is not depreciated. Property, plant and equipment are depreciated on the straight line basis over their 

expected useful lives to their estimated residual value. 

The useful lives of items of property, plant and equipment have been assessed as follows: 

Item Average useful life 

Buildings 50 years 

Motor vehicles 5 years 

Office and other equipment 3 - 10 years 

The residual value, useful life and depreciation method of each asset are reviewed, and adjusted if appropriate, 

at the end of each reporting period. If the expectations differ from previous estimates, the change is accounted 

for as a change in accounting estimate. 

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of 

the item is depreciated separately. 

The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount 

of another asset. 

36



1.4 Property, plant and equipment (continued) 


The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or 

loss when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant 

and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying 

amount of the item. An asset’s carrying amount is written down immediately to its recoverable amount if the 

asset’s carrying amount is greater than its estimated recoverable amount. 

1.5 Intangible assets 

An intangible asset is recognised when: 

it is probable that the expected future economic benefits that are attributable to the asset will flow to 

the entity; and 

the cost of the asset can be measured reliably. 

Intangible assets are initially recognised at cost. 

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is 

incurred. 

An intangible asset arising from development (or from the development phase of an internal project) is 

recognised when: 

it is technically feasible to complete the asset so that it will be available for use or sale. 

there is an intention to complete and use or sell it. 

there is an ability to use or sell it. 

it will generate probable future economic benefits. 

there are available technical, financial and other resources to complete the development and to use or 

sell the asset. 

the expenditure attributable to the asset during its development can be measured reliably. 

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses. 

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no 

foreseeable limit to the period over which the asset is expected to generate net cash inflows. Amortisation is not 

provided for these intangible assets, but they are tested for impairment annually and whenever there is an 

indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight 

line basis over their useful life. 

The amortisation period and the amortisation method for intangible assets are reviewed every period-end. 

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an 

indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining 

carrying amount is amortised over its useful life. 

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not 

recognised as intangible assets. 

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as 

follows: 

Item Useful life 

Computer software 5 years 

37

1.6 Investments in subsidiaries 



Co-operative annual financial statements 


In the co-operative’s separate annual financial statements, investments in subsidiaries are carried at cost less 

any accumulated impairment. 

The cost of an investment in a subsidiary is the aggregate of: 

the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity 

instruments issued by the co-operative; plus 

any costs directly attributable to the purchase of the subsidiary. 

An adjustment to the cost of a business combination contingent on future events is included in the cost of the 

combination if the adjustment is probable and can be measured reliably. 

1.7 Financial instruments 

IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets 

and financial liabilities. IFRS 9 was issued in November 2009 and October 2010. It replaces the parts of IAS 39 

that relate to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be 

classified into two measurement categories: those measured as at fair value and those measured at amortised 

cost. The determination is made at initial recognition. The classification depends on the entity’s business model 

for managing its financial instruments and the contractual cash flow characteristics of the instrument. For 

financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases 

where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own 

credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an 

accounting mismatch. 

The group has adopted IFRS 9 from 1 August 2009, as well as the related consequential amendments to other 

IFRSs, because this new accounting policy provides reliable and more relevant information for users to assess 

the amounts, timing and uncertainty of future cash flows. 

As from 1 August 2009, the group classifies its financial assets in the following categories: those to be measured 

subsequently at fair value, and those to be measured at amortised cost. This classification depends on whether 

the financial asset is a debt or equity investment. 

Debt investments 

(a) Financial assets at amortised cost 

A debt investment is classified as ‘amortised cost’ only if both of the following criteria are met: the objective of 

the group’s business model is to hold the asset to collect the contractual cash flows; and the contractual terms 

give rise on specified dates to cash flows that are solely payments of principal and interest on the principal 

outstanding. The nature of any derivatives embedded in the debt investment are considered in determining 

whether the cash flows of the investment are solely payment of principal and interest on the principal outstanding 

and are not accounted for separately. 

38




1.7 Financial instruments (continued) 

(b) Financial assets at fair value 

If either of the two criteria above are not met, the debt instrument is classified as ‘fair value through profit or 

loss’. 

The group has not designated any debt investment as measured at fair value through profit or loss to eliminate 

or 

significantly reduce an accounting mismatch. 

All equity investments are measured at fair value. All equity investments are measured at fair value through profit 

or loss. 

Regular purchases and sales of financial assets are recognised on the trade-date–the date on which the group 

commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows 

from the investments have expired or have been transferred and the group has transferred substantially all risks 

and rewards of ownership. 

At initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset 

not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the 

financial asset. Transaction costs of financial assets carried at fair value though profit or loss are expensed in 

the income statement. 

A gain or loss on a debt investment that is subsequently measured at fair value and is not part of a hedging 

relationship is recognised in profit or loss and presented in the income statement within ‘other (losses)/gains 

—net’ in the period in which they arise. 

A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging 

relationship is recognised in profit or loss when the financial asset is derecognised or impaired and through the 

amortisation process using the effective interest rate method. 

The group subsequently measures all equity investments at fair value. Where the group’s management has 

elected to 

present unrealised and realised fair value gains and losses on equity investments in other comprehensive 

income, 

there is no subsequent recycling of fair value gains and losses to profit or loss. Dividends from such investments 

continue to be recognised in profit or loss as long as they represent a return on investment. 

The group is required to reclassify all affected debt investments when and only when its business model for 

managing those assets changes. 

Impairment of financial assets 

Assets carried at amortised cost 

The group assesses at the end of each reporting period whether there is objective evidence that a financial 

asset or group of financial assets measured at amortised cost is impaired. A financial asset or a group of 

financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment 

as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that 

loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of 

financial assets that can be reliably estimated. 

Loans to (from) group companies 

These include loans to and from holding companies, fellow subsidiaries, subsidiaries, joint ventures and 

associates and are recognised initially at fair value plus direct transaction costs. 

Loans to group companies are classified as loans and receivables. 

Loans from group companies are classified as financial liabilities measured at amortised cost. 

39

1.7 Financial instruments (continued) 

Trade and other receivables 




Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised 

cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are 

recognised in profit or loss when there is objective evidence that the asset is impaired. Significant financial 

difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or 

delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is 

impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the 

present value of estimated future cash flows discounted at the effective interest rate computed at initial 

recognition. 

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the 

loss is recognised in profit or loss within operating expenses. When a trade receivable is uncollectable, it is 

written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously 

written off are credited against operating expenses in profit or loss. 

Trade and other receivables are classified as loans and receivables. 

Trade and other payables 

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the 

effective interest rate method. 

Cash and cash equivalents 

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid 

investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of 

changes in value. These are initially and subsequently recorded at fair value. 

Bank overdraft and borrowings 

Bank overdrafts and borrowings are initially measured at fair value, and are subsequently measured at 

amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction 

costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in 

accordance with the group’s accounting policy for borrowing costs. 

Bank overdrafts and borrowings are classified as current liabilities unless the group has an unconditional right to 

defer settlement of the liability for at least 12 months after the statement of financial position date. 

Preference shares, which are mandatorily redeemable on a specific date, are classified as liabilities. 

The dividends on these preference shares are recognised in profit or loss as interest expense. 

The fair value of the liability portion of a convertible instrument is determined using a market interest rate for an 

equivalent non-convertible instrument. This amount is recorded as a liability on an amortised cost basis until 

extinguished on conversion or maturity of the instrument. The remainder of the proceeds is allocated to the 

conversion option. This is recognised and included in shareholders’ equity, net of income tax effects. 

1.8 Income tax 

Current tax assets and liabilities 

Current income tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount 

already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is 

recognised as an asset. 

40

1.8 Income tax (continued) 




Current income tax liabilities (assets) for the current and prior periods are measured at the amount expected to 

be paid to (recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or 

substantively enacted by the end of the reporting period. 

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable 

tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts 

expected to be paid to the tax authorities. 

Deferred tax assets and liabilities 

A deferred tax liability is recognised for all taxable temporary differences, except to the extent that the deferred tax 

liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction, 

affects neither accounting profit nor taxable profit (tax loss). 

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that 

taxable profit will be available against which the deductible temporary difference can be utilised. A deferred tax 

asset is not recognised when it arises from the initial recognition of an asset or liability in a transaction at the time of 

the transaction, affects neither accounting profit nor taxable profit (tax loss). 

A deferred tax asset is recognised for the carry forward of unused tax losses to the extent that it is probable that 

future taxable profit will be available against which the unused tax losses can be utilised. 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when 

the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or 

substantively enacted by the end of the reporting period. 

Income tax expenses 

Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period, 

except to the extent that the tax arises from: 

a transaction or event which is recognised, in the same or a different period, to other comprehensive 

income, or 

a business combination. 

Current tax and deferred taxes are charged or credited to other comprehensive income if the tax relates to items 

that are credited or charged, in the same or a different period, to other comprehensive income. 

Current tax and deferred taxes are charged or credited directly to equity if the tax relates to items that are 

credited or charged, in the same or a different period, directly in equity. 

1.9 Leases 

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to 

ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards 

incidental to ownership. 

Operating leases - lessor 

Operating lease income is recognised as an income on a straight-line basis over the lease term. The difference 

between the amounts recognised as an expense and the contractual payments are recognised as an operating 

lease asset. This asset is not discounted. 

Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the 

leased asset and recognised as an expense over the lease term on the same basis as the lease income. 

41

1.9 Leases (continued) 




Income for leases is disclosed under revenue in the statement of comprehensive income. 

1.10 Inventories 

Inventories are measured at the lower of cost and net realisable value. 

Inventories are measured at the lower of cost and net realisable value on the first-in-first-out basis. 

Net realisable value is the estimated selling price in the ordinary course of business less applicable variable 

selling expenses. 

The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in 

bringing the inventories to their present location and condition. 

The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and 

segregated for specific projects is assigned using specific identification of the individual costs. 

The cost of inventories is assigned using the weighted average cost formula. The same cost formula is used for 

all inventories having a similar nature and use to the entity. 

When inventories are sold, the carrying amount of those inventories are recognised as an expense in the period 

in which the related revenue is recognised. The amount of any write-down of inventories to net realisable value 

and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The 

amount of any reversal of any write-down of inventories, arising from an increase in net realisable value, are 

recognised as a reduction in the amount of inventories recognised as an expense in the period in which the 

reversal occurs. 

1.11 Non-current assets held for sale 

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered 

through a sale transaction rather than through continuing use. This condition is regarded as met only when the 

sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. 

Management must be committed to the sale, which should be expected to qualify for recognition as a completed 

sale within one year from the date of classification. 

Non-current assets held for sale (or disposal group) are measured at the lower of its carrying amount and fair 

value less costs to sell. 

A non-current asset is not depreciated (or amortised) while it is classified as held for sale, or while it is part of a 

disposal group classified as held for sale. 

Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale are 

recognised in profit or loss. 

1.12 Impairment of non-financial assets 

The group assesses at each end of the reporting period whether there is any indication that an asset may be 

impaired. If any such indication exists, the group estimates the recoverable amount of the asset. 

Irrespective of whether there is any indication of impairment, the group also: 

tests intangible assets with an indefinite useful life or intangible assets not yet available for use for 

impairment annually by comparing its carrying amount with its recoverable amount. This impairment 

test is performed during the annual period and at the same time every period. 

tests goodwill acquired in a business combination for impairment annually. 

42



1.12 Impairment of non-financial assets (continued) 


If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual 

asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of 

the cash-generating unit to which the asset belongs is determined. 

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and 

its value in use. 

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is 

reduced to its recoverable amount. That reduction is an impairment loss. 

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised 

immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease. 

Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cashgenerating 

units, or groups of cash-generating units, that are expected to benefit from the synergies of the 

combination. 

An impairment loss is recognised for cash-generating units if the recoverable amount of the unit is less than the 

carrying amount of the units. The impairment loss is allocated to reduce the carrying amount of the assets of the 

unit in the following order: 

first, to reduce the carrying amount of any goodwill allocated to the cash-generating unit and 

then, to the other assets of the unit, pro rata on the basis of the carrying amount of each asset in the 

unit. 

An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in 

prior periods for assets other than goodwill may no longer exist or may have decreased. If any such indication 

exists, the recoverable amounts of those assets are estimated. 

The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss 

does not exceed the carrying amount that would have been determined had no impairment loss been recognised 

for the asset in prior periods. 

A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other 

than goodwill is recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset 

is treated as a revaluation increase. 

1.13 Share capital and equity 

Ordinary shares are classified as equity. 

1.14 Bonus shares 

Bonus shares consist of ordinary shares converted to bonus shares where members’ shareholding exceeded 50 

shares and allocation of profits according to the directors’ discretion in terms of paragraph 23.7 of the By-laws of 

the co-operative. Any bonus share may not be repaid, transferred or withdrawn unless a period of at least five 

years have expired since allocation and as may be approved in the discretion of the board, or in terms of the 

provisions of section 54 of the Co-operatives Act, or unless a member’s estate is sequestrated or wound up or a 

member dies. Bonus shares are recognised initially at fair value, net of transaction costs incurred. Bonus shares 

are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and 

the redemption value is recognised in the statement of comprehensive income over the period of the borrowings 

using the effective interest method. 

43

1.15 Members' funds 




The co-operative may declare bonuses to members. The bonuses not paid out are deemed to be a source of 

finance. 

Members’ funds are recognised initially at fair value, net of transaction costs incurred. Members’ funds are 

subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the 

redemption value is recognised in the statement of comprehensive income over the period of the borrowings 

using the effective interest method. 

1.16 Employee benefits 

Short-term employee benefits 

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as 

paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised 

in the period in which the service is rendered and are not discounted. 

The expected cost of compensated absences is recognised as an expense as the employees render services 

that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. 

The expected cost of profit sharing and bonus payments is recognised as an expense when there is a legal or 

constructive obligation to make such payments as a result of past performance. 

Defined contribution plans 

A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate 

entity. The co-operative has no legal or constructive obligations to pay further contributions if the fund does not 

hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior 

periods. 

Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. The cooperative 

has no further payment obligations once the contributions have been paid. 

Defined benefit plans 

Profit-sharing and bonus plans 

The group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that takes 

into consideration the profit attributable to the co-operative’s members after certain adjustments. The group 

recognises a provision where contractually obliged or where there is a past practice that has created a 

constructive obligation. 

Termination benefits 

The group applies the provisions of IAS 19 that cover the post-employment benefits to severance payments (or 

portion thereof) that are payable both upon normal retirement, involuntary early retirement and retirement or 

resignation after the normal retirement age (in cases requested by the employer to remain in service after 

retirement). Actuarial gains and losses arising from experience adjustments, and changes in actuarial 

assumptions are charged or credited to income over the expected average remaining working lives of the related 

employees. 

1.17 Provisions and contingencies 

Provisions are recognised when: 

the group has a present obligation as a result of a past event; 

44




1.17 Provisions and contingencies (continued) 

it is probable that an outflow of resources embodying economic benefits will be required to settle the 

obligation; and 

a reliable estimate can be made of the obligation. 

The amount of a provision is the present value of the expenditure expected to be required to settle the obligation. 

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another 

party, the reimbursement shall be recognised when, and only when, it is virtually certain that reimbursement will 

be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset. The 

amount recognised for the reimbursement shall not exceed the amount of the provision. 

Provisions are not recognised for future operating losses. 

If an entity has a contract that is onerous, the present obligation under the contract shall be recognised and 

measured as a provision. 

A constructive obligation to restructure arises only when an entity: 

has a detailed formal plan for the restructuring, identifying at least: 

- the business or part of a business concerned; 

- the principal locations affected; 

- the location, function, and approximate number of employees who will be compensated for 

terminating their services; 

- the expenditures that will be undertaken; and 

- when the plan will be implemented; and 

has raised a valid expectation in those affected that it will carry out the restructuring by starting to 

implement that plan or announcing its main features to those affected by it. 

After their initial recognition contingent liabilities recognised in business combinations that are recognised 

separately are subsequently measured at the higher of: 

the amount that would be recognised as a provision; and 

the amount initially recognised less cumulative amortisation. 

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note . 

1.18 Revenue 

Revenue from the sale of goods is recognised when all the following conditions have been satisfied: 

the group has transferred to the buyer the significant risks and rewards of ownership of the goods; 

the group retains neither continuing managerial involvement to the degree usually associated with 

ownership nor effective control over the goods sold; 

the amount of revenue can be measured reliably; 

it is probable that the economic benefits associated with the transaction will flow to the group; and 

the costs incurred or to be incurred in respect of the transaction can be measured reliably. 

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue 

associated with the transaction is recognised by reference to the stage of completion of the transaction at the 

end of the reporting period. The outcome of a transaction can be estimated reliably when all the following 

conditions are satisfied: 

the amount of revenue can be measured reliably; 

it is probable that the economic benefits associated with the transaction will flow to the group; 

the stage of completion of the transaction at the end of the reporting period can be measured reliably; 

and 

the costs incurred for the transaction and the costs to complete the transaction can be measured 

reliably. 

45

1.18 Revenue (continued) 




When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue 

shall be recognised only to the extent of the expenses recognised that are recoverable. 

Service revenue is recognised by reference to the stage of completion of the transaction at the end of the 

reporting period. Stage of completion is determined by services performed to date as a percentage of total 

services to be performed. 

Contract revenue comprises: 

the initial amount of revenue agreed in the contract; and 

variations in contract work, claims and incentive payments: 

- to the extent that it is probable that they will result in revenue; and 

- they are capable of being reliably measured. 

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts 

receivable for goods and services provided in the normal course of business, net of trade discounts and volume 

rebates, and value added tax. 

Interest is recognised, in profit or loss, using the effective interest rate method. 

Dividends are recognised, in profit or loss, when the co-operative’s right to receive payment has been 

established. 

1.19 Turnover 

Turnover comprises of sales to customers and service rendered to customers. Turnover is stated at the invoice 

amount and is exclusive of value added taxation. 

1.20 Cost of sales 

When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in 

which the related revenue is recognised. The amount of any write-down of inventories to net realisable value and 

all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount 

of any reversal of any write-down of inventories, arising from an increase in net realisable value, is recognised as 

a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. 

The related cost of providing services recognised as revenue in the current period is included in cost of sales. 

Contract costs comprise: 

costs that relate directly to the specific contract; 

costs that are attributable to contract activity in general and can be allocated to the contract; and 

such other costs as are specifically chargeable to the customer under the terms of the contract. 

1.21 Borrowing costs 

Borrowing costs are recognised as an expense in the period in which they are incurred. 

46



2. New standards and interpretations 

Notes to the Annual Financial Statements 

2.1 Standards and interpretations effective and adopted in the current year 

In the current year, the group has adopted the following standards and interpretations that are effective for the 

current financial year and that are relevant to its operations: 

IAS 24 Related Party Disclosures (Revised) 

The revisions to IAS 24 include a clarification of the definition of a related party as well as providing a partial 

exemption for related party disclosures between government-related entities. 

In terms of the definition, the revision clarifies that joint ventures or associates of the same third party are related 

parties of each other. To this end, an associate includes its subsidiaries and a joint venture includes its 

subsidiaries. 

The partial exemption applies to related party transactions and outstanding balances with a government which 

controls, jointly controls or significantly influences the reporting entity as well as to transactions or outstanding 

balances with another entity which is controlled, jointly controlled or significantly influenced by the same 

government. In such circumstances, the entity is exempt from the disclosure requirements of paragraph 18 of IAS 

24 and is required only to disclose: 

The name of the government and nature of the relationship 

Information about the nature and amount of each individually significant transaction and a quantitative or 

qualitative indication of the extent of collectively significant transactions. Such information is required in 

sufficient detail to allow users to understand the effect. 

The effective date of the amendment is for years beginning on or after 01 January 2011. 

The group has adopted the amendment for the first time in the 2012 annual financial statements. 

The impact of the amendment is not material. 

Amendments to IFRS 7 Disclosures - Transfers of financial assets 

Amended the required disclosures to help users of financial statements evaluate the risk exposures relating to 

transfers of financial assets and the effect of those risks on an entity’s financial position. 

The effective date of the amendment is for years beginning on or after 01 July 2011. 



47




2. New standards and interpretations (continued) 

Amendments to IFRS, 'First time adoption' on hyperinflation and fixed dates 

The first amendment replaces references to a fixed date of ‘1 January 2004’ with ‘the date of transition to IFRSs’, 

thus eliminating the need for companies adopting IFRSs for the first time to restate derecognition transactions that 

occurred before the date of transition to IFRSs. The second amendment provides guidance on how an entity should 

resume presenting financial statements in accordance with IFRSs after a period when the entity was unable to 

comply with IFRSs because its functional currency was subject to severe hyperinflation. 

The effective date of the amendment is for years beginning on or after 01 July 2011. 



Amendments to IFRS 9 - Financial Instruments 

The co-operative has early adopted IFRS 9 the first time for the 31 July 2010 year end. 

2.2 Standards and interpretations not yet effective 

The group has chosen not to early adopt the following standards and interpretations, which have been published 

and are mandatory for the group’s accounting periods beginning on or after 01 August 2012 or later periods: 

IFRS 10 Consolidated Financial Statements 

Standard replaces the consolidation sections of IAS 27 Consolidated and Separate Financial Statements and SIC 

12 Consolidation – Special Purpose Entities. The standard sets out a new definition of control, which exists only 

when an entity is exposed to, or has rights to, variable returns from its involvement with the entity, and has the 

ability to effect those returns through power over the investee. 

The effective date of the standard is for years beginning on or after 01 January 2013. 

The group expects to adopt the standard for the first time in the 2014 annual financial statements. 

It is unlikely that the standard will have a material impact on the group's annual financial statements. 

IAS 27 Separate Financial Statements 

Consequential amendment as a result of IFRS 10. The amended Standard now only deals with separate financial 

statements. 


The group expects to adopt the amendment for the first time in the 2014 annual financial statements. 

It is unlikely that the amendment will have a material impact on the group's annual financial statements. 

IFRS 11 Joint Arrangements 

The standard replaces IAS 31 Interests in Joint Ventures and SIC 13 Jointly Controlled Entities – Non Monetary 

Contributions by Venturers. The standard defines a Joint arrangement as existing only when decisions about 

relevant activities requires the unanimous consent of the parties sharing joint control in terms of a contractual 

arrangement. The standard identifies two types of joint arrangements as: 

48





Joint operations which exist when the entities sharing joint control have direct rights to the assets and 

obligations for the liabilities of the joint arrangements. In such cases the joint operators recognise their 

share of the assets and liabilities and profits and losses of the joint arrangements in their financial 

statements. 

Joint operations which exist when the entities sharing joint control have direct rights to the assets and 

obligations for the liabilities of the joint arrangements. In such cases the joint operators recognise their 

share of the assets and liabilities and profits and losses of the joint arrangements in their financial 

statements. 




IFRS 12 Disclosure of Interests in Other Entities 

The standard sets out disclosure requirements for investments in Subsidiaries, associates, joint ventures and 

unconsolidated structured entities. The disclosures are aimed to provide information about the significance and 

exposure to risks of such interests. The most significant impact is the disclosure requirement for unconsolidated 

structured entities or off balance sheet vehicles. 




IFRS 13 Fair Value Measurement 

New standard setting out guidance on the measurement and disclosure of items measured at fair value or required 

to be disclosed at fair value in terms of other IFRS’s. 




IAS 1 Presentation of Financial Statements 

The amendment now requires items of other comprehensive income to be presented as: 

Those which will be reclassified to profit or loss 

Those which will not be reclassified to profit or loss. 

The related tax disclosures are also required to follow the presentation allocation. 

In addition, the amendment changed the name of the statement of comprehensive income to the statement of profit 

or loss and other comprehensive income. 

The effective date of the amendment is for years beginning on or after 01 July 2012. 



49





IAS 12 Income Taxes: Amendment: Deferred Tax: Recovery of Underlying Assets 

The amendment now provides that for investment property measured at fair value, the recovery of the carrying 

amount is assumed to be through sale, with the result that deferred tax arising on the valuation is measured using 

the prevailing tax rate for capital gains. 

The effective date of the amendment is for years beginning on or after 01 January 2012. 



IAS 19 Employee Benefits Revised 

Require recognition of changes in the net defined benefit liability (asset) including immediate recognition 

of defined benefit cost, disaggregation of defined benefit cost into components, recognition of 

remeasurements in other comprehensive income, plan amendments, curtailments and settlements 

Introduce enhanced disclosures about defined benefit plans 

Modify accounting for termination benefits, including distinguishing benefits provided in exchange for 

service and benefits provided in exchange for the termination of employment and affect the recognition 

and measurement of termination benefits 

Clarification of miscellaneous issues, including the classification of employee benefits, current estimates 

of mortality rates, tax and administration costs and risk-sharing and conditional indexation features 




Amendment to IFRS 7 Financial Instruments: Disclosure 

The IASB has published an amendment to IFRS 7, ‘Financial instruments: Disclosures’, reflecting the joint 

requirements with the FASB to enhance current offsetting disclosures. These new disclosures are intended to 

facilitate comparison between those entities that prepare IFRS financial statements to those that prepare financial 

statements in accordance with US GAAP. 




IAS 28 (revised 2011) - Associates and joint ventures 

This standard includes the requirements for joint ventures, as well as associates, to be equity accounted following 

the issue of IFRS 11. 




Amendments to IAS 32 - Financial Instruments: Presentation 

50





The IASB has issued amendments to the application guidance in IAS 32, ‘Financial instruments: Presentation’, that 

clarify some of the requirements for offsetting financial assets and financial liabilities on the balance sheet. 

However, the clarified offsetting requirements for amounts presented in the statement of financial position continue 

to be different from US GAAP. 




3. Risk management 

Capital risk management 

The group's objectives when managing capital are to safeguard the group's ability to continue as a going concern in 

order to provide returns for shareholder and benefits for other stakeholders and to maintain an optimal capital 

structure to reduce the cost of capital. 

The capital structure of the group consists of debt, which includes the borrowings (excluding derivative financial 

liabilities) disclosed in note 17, and cash and cash equivalents disclosed in note 14, and equity as disclosed in the 

statement of financial position. 

Financial risk management 

The group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest 

rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. 

Liquidity risk 

Cash flow forecasting is performed in the operating entities of the group and aggregated by co-operative finance. 

Co-operative finance monitors rolling forecasts of the co-operative’s liquidity requirements to ensure it has sufficient 

cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities 

at all times so that the co-operative does not breach borrowing limits or covenants (where applicable) on any of its 

borrowing facilities. Such forecasting takes into consideration the co-operative’s debt financing plans, covenant 

compliance, compliance with internal statement of financial position ratio targets and, if applicable external 

regulatory or legal requirements. 

The co-operative has an overdraft facility of N$ 29 million which will be reviewed on 15 March 2013. 

The table below analyses the group’s financial liabilities and net-settled derivative financial liabilities into relevant 

maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The 

amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal 

their carrying balances as the impact of discounting is not significant. 

Comparative information has been restated as permitted by the amendments to IFRS 7 for the liquidity risk 

disclosures. 

Group 

51






N$ '000 N$ '000 N$ '000 N$ '000 

At 31 July 2012 Less than 1 Between 1 Between 2 Over 5 years 

year and 2 years and 5 years 

Bonus shares 1,162 - - - 

Membership funds 41,272 - - - 

Borrowings 11,266 2,921 2,296 - 

Trade and other payables 116,807 - - - 

At 31 July 2011 Less than 1 Between 1 Between 2 Over 5 years 




Borrowings 19,330 2,296 2,920 - 


Co-operative 

At 31 July 2012 Less than 1 Between 1 Between 2 Over 5 years 




Borrowings 11,266 2,921 2,296 - 


At 31 July 2011 Less than 1 Between 1 Between 2 Over 5 years 




Borrowings 19,330 2,296 2,920 - 


52

Interest rate risk 






N$ '000 N$ '000 N$ '000 N$ '000 

Cash flow interest rate risk 

The group's interest rate risk arise from current and non-current borrowings. Borrowings at variable rates expose 

the group to cash flow interest rate risk which is partially off set by cash held at variable rates. 

Consolidated 

As at 31 July 2012 Non-current Current Total 

Cash and cash equivalents - 33,002 33,002 

Non-current borrowings (2,296) - (2,296) 

Current borrowings - (14,499) (14,499) 

(2,296) 18,503 16,207 

As at 31 July 2011 Non-current Current Total 




Co-operative 

(5,216) 16,198 10,982 

As at 31 July 2012 Non-current Current Total 



Current borrowings - 14,499 14,499 

(2,296) 46,746 44,450 

As at 31 July 2011 Non-current Current Total 




(5,216) 12,546 7,330 

The co-operative's and group’s trade and other receivables and trade and other payables and short term loans do 

not expose the co-operative or the group to any significant interest rate risks due to their short term nature. 

Cash flow sensitivity analysis for floating interest rate bearing instruments. 

A change of 100 basis points in interest rates at the reporting date would have increased or decreased accumulated 

funds and surplus by the amounts shown below. This analysis assumes that all other variables remain constant. 

The analysis is performed on the same basis for 2011. 

Consolidated 

Effect on profit 2012 Effect on profit 2011 

100bp 

increase in 

market 

100bp 

decrease in 

market 

100bp 

increase in 

market 

100bp 

decrease in 

market 

53






N$ '000 N$ '000 N$ '000 N$ '000 

Cash and cash equivalents 23 (23) 20 (20) 

Bank overdrafts (12) 12 (11) 11 

Borrowings (2) 2 (3) 3 

Co-operative 

Effect on profit 2012 Effect on profit 2011 

100bp 

increase in 

market 

100bp 

decrease in 

market 

100bp 

increase in 

market 

100bp 

decrease in 

market 

Cash and cash equivalents 21 (21) 18 (18) 

Bank overdrafts (12) 12 (11) 11 

Borrowings (3) 3 (3) 3 

Credit risk 

Credit risk is managed on a group basis. 

Credit risk consists mainly of cash deposits, cash equivalents, trade debtors. The co-operative only deposits cash 

with major banks with high quality credit standing and limits exposure to any one counter-party. 

Financial assets exposed to credit risk at year end were as follows: 

` 

Financial instrument Group - 2012 Group - 2011 Co-operative 

- 2012 

Co-operative 

- 2011 

Trade and other receivables 64,781 79,863 64,063 79,130 

Cash and cash equivalents 33,002 35,528 32,247 33,401 

97,784 115,391 96,412 112,531 

54

Financial Instrument Analysis: 






N$ '000 N$ '000 N$ '000 N$ '000 

Financial 

assets 

measured at 

fair value 

through profit 

or loss 

CONSOLIDATED 2012 

Financial 

assets held at 

amortised 

cost 

Financial 

Liabilities at 

amortised 

cost 

Not included 

in definition of 

IFRS 9 

Property, plant and equipment - - - 95,318 

Intangible assets - - - 743 

Investment property - - - 15,142 

Deferred tax asset - - - 23,573 


16,596 - - - 


Non-current assets held for sale - - - - 

Inventories - - - 116,095 

Current tax asset - - - 619 

Trade and other receivables - 64,781 - - 

Prepayments - - - 3,681 

Cash and cash equivalents - 33,002 - - 

Sub total 16,596 97,783 - 255,171 

Bonus shares - - (1,162) - 

Members' funds - - (41,272) - 

Retirement benefit obligations - - - (36,161) 

Trade and other payables - - (116,807) - 

Taxation payable - - - (379) 

Severance pay provision - - - (973) 

Deferred tax liability - - - (21,827) 

Borrowings - - (16,795) - 

Sub total - - (176,036) (59,340) 

TOTAL - NET 16,596 97,783 (176,036) 195,831 

55







N$ '000 N$ '000 N$ '000 N$ '000 

Financial 

assets 

measured at 

fair value 


or loss 

CONSOLIDATED 2011 

Financial 


amortised 

cost 

Financial 


amortised 

cost 

Not included 


IFRS 9 






4,506 - - - 







Sub total 4,506 115,391 - 214,818 





Taxation payable - - - (462) 



Borrowings - - (24,546) - 

Sub total - - (176,574) (55,230) 

TOTAL - NET 4,506 115,391 (176,574) 159,588 

56







N$ '000 N$ '000 N$ '000 N$ '000 

Financial 

assets 

measured at 

fair value 


or loss 

CO-OPERATIVE 2012 

Financial 


amortised 

cost 

Financial 


amortised 

cost 

Not included 


IFRS 9 





Investment in subsidiaries - - - 830 


16,596 - - - 






Prepayments - - - 3,681 


Sub total 16,596 96,310 - 254,936 





Taxation payable - - - - 



Borrowings - - (19,010) - 

Sub total - - (177,303) (58,939) 

TOTAL - NET 16,596 96,310 (177,303) 195,997 

57







N$ '000 N$ '000 N$ '000 N$ '000 

Financial 

assets 

measured at 

fair value 


or loss 

CO-OPERATIVE 2011 

Financial 


amortised 

cost 

Financial 


amortised 

cost 

Not included 


IFRS 9 





Investment in subsidiaries - - - 144 


4,506 - - - 







Sub total 4,506 112,531 - 214,255 





Taxation payable - - - - 



Borrowings - - (26,071) - 

Sub total - - (176,440) (54,746) 

TOTAL - NET 4,506 112,531 (176,440) 159,509 

58

Exposure to insurance risk 






N$ '000 N$ '000 N$ '000 N$ '000 

The co-operative underwrites risks regarding cattle in transit. As such the co-operative is exposed to uncertainty 

surrounding the timing, frequency and severity of claims under insurance contracts. The principal risk is that the 

frequency and/or severity of claims are greater than expected. Insurance events are by nature random and the 

actual size and number of the events in any one year may vary from those estimated and experienced in prior 

periods. 

The primary insurance activity carried out by the co-operative assumes the risk of loss from policyholders that are 

directly subject to risk. These risks relate to specific perils as defined in the policy wording. As such the co-operative 

is exposed to the uncertainty surrounding the timing and severity of claims under contracts. The co-operative has 

exposure to market risk through its insurance and investment activities. 

The co-operative has not reinsured its risk for cattle in transit. 

59

Fair value estimation 






N$ '000 N$ '000 N$ '000 N$ '000 

The fair value of financial instruments traded in active markets is based on quoted market prices at the financial 

year end date. The quoted market price used for financial assets held by the group is the current bid price. The fair 

value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is 

determined by using valuation techniques. The group uses a variety of methods and makes assumptions that are 

based on market conditions existing at each financial year end date. Quoted market prices or dealer quotes for 

similar instruments are used for long-term debt. Other techniques, such as estimated discounted cash flows, are 

used to determine fair value for the remaining financial instruments. The fair value of interest rate swaps is 

calculated as the present value of the estimated future cash flows. The fair value of forward foreign exchange 

contracts is determined using quoted forward exchange rates at the financial year end date. 

The following table summarises the carrying amounts and fair values of those financial assets and liabilities. Bid 

prices are used to estimate fair values of assets, whereas offer prices are applied for liabilities. 

Consolidated 

Carrying value Fair value 

FINANCIAL ASSETS 2012 2011 2012 2011 

N$’000 N$’000 N$’000 N$’000 



16,596 4,506 16,596 4,506 

Loans - - - - 



FINANCIAL LIABILITIES 

114,379 119,897 114,379 119,875 

Bonus shares (1,162) (1,186) (1,162) (1,186) 

Member's funds (41,272) (41,704) (41,272) (41,704) 

Trade and other payables (116,807) (109,138) (116,807) (109,138) 

Borrowings (16,795) (24,546) (16,795) (24,546) 

ITEMS NOT RECORDED ON THE 

STATEMENT OF FINANCIAL 

POSITION 

(176,036) (176,574) (176,036) (176,574) 

Guarantees and other financial 

facilities 

(572) (644) (572) (644) 

Lease payable commitments (8,140) (2,077) (8,140) (2,077) 

Lease receivable commitments 13,277 11,564 13,277 11,564 

4,565 8,843 4,565 8,843 

60






N$ '000 N$ '000 N$ '000 N$ '000 

Co-operative 

Carrying value Fair value 

FINANCIAL ASSETS 2012 2011 2012 2011 

N$’000 N$’000 N$’000 N$’000 



16,596 4,506 16,596 4,506 

Loans - - - - 



FINANCIAL LIABILITIES 

112,906 117,037 112,906 117,017 

Bonus shares (1,162) (1,186) (1,162) (1,186) 

Member's funds (41,272) (41,704) (41,272) (41,704) 

Trade and other payables (115,859) (107,479) (115,859) (107,479) 

Borrowings (16,795) (26,071) (16,795) (26,071) 

ITEMS NOT RECORDED ON THE 

STATEMENT OF FINANCIAL 

POSITION 

(175,088) (176,440) (175,088) (176,440) 

Guarantees and other financial 

facilities 

(572) (644) (572) (644) 

Lease payable commitments (7,333) (958) (7,333) (958) 

Lease receivable commitments 13,277 11,564 13,277 11,564 

5,372 9,962 5,372 9,962 

61






N$ '000 N$ '000 N$ '000 N$ '000 

Financial assets designated at fair value through profit or loss 

The fair value of unlisted shares has been determined according to most recent trading prices and net asset value. 

Loans 

The nominal value less impairment provision is assumed to approximate the fair value. 

Trade and other receivables and payables 

The nominal value less impairment provision of trade receivables and payables are assumed to approximate their 

fair value, due to the short-term nature of these assets and liabilities. 

Cash and cash equivalents 

Due to its short-term nature, the carrying amount approximates the fair value of these financial assets. 

Bonus shares and members funds 

The fair value of these financial liabilities is estimated by discounting the future contractual cash flows at the current 

market interest rate that is available to the group for similar financial instruments. 

Borrowings 

The estimated fair value of borrowings with no stated maturity is the amount repayable on demand, whereas the fair 

value of borrowings with a stated maturity is estimated using discounted cashflow analysis. 

Financial instruments not recorded on the statement of financial position 

The estimated fair values of the financial instruments not recorded on the statement of financial position are based 

on market prices for similar facilities. When this information is not available, fair value is estimated using discounted 

cashflow analysis. 

Foreign exchange risk 

The co-operative and group are not exposed to foreign exchange risk as all sales are invoiced and collected in 

Namibian dollar. 

Price risk 

The co-operative and the group are not exposed to the risk of fluctuating prices. 

62

4. Investment property 






N$ '000 N$ '000 N$ '000 N$ '000 

Group 2012 2011 

Cost / 

Valuation 

Accumulated 

depreciation 

Carrying 

value 

Cost / 

Valuation 

Accumulated 

depreciation 

Carrying 

value 

Investment property 15,142 - 15,142 15,104 - 15,104 

Co-operative 2012 2011 

Cost / 

Valuation 

Accumulated 

depreciation 

Carrying 

value 

Cost / 

Valuation 

Accumulated 

depreciation 

Carrying 

value 

Investment property 15,142 - 15,142 15,104 - 15,104 

Reconciliation of investment property - Group - 2012 

Opening 

balance 

Additions Total 

Investment property 15,103 39 15,142 

Reconciliation of investment property - Group - 2011 

Opening Disposals Fair value Total 

balance 

adjustments 

Investment property 12,208 (756) 3,652 15,104 

Reconciliation of investment property - Co-operative - 2012 

Opening 

balance 

Additions Total 

Investment property 15,103 39 15,142 

Reconciliation of investment property - Co-operative - 2011 

Opening Disposals Fair value Total 

balance 

adjustments 

Investment property 12,208 (757) 3,652 15,103 

The investment properties were valued, according to the accounting policy, by the directors on 31 July 2011 at open 

market value, taking into account external valuations and municipality valuations. It was decided at a directors 

meeting, held on 30 August 2012, that the value as per the register is accepted as the market value for 31 July 

2012. Rent received from investment properties amounted to N$ 1,46 million (2011: N$ 1.31 million). 

63

5. Property, plant and equipment 






N$ '000 N$ '000 N$ '000 N$ '000 


Cost / 

Valuation 

Accumulated 

depreciation 

Carrying 

value 

Cost / 

Valuation 

Accumulated 

depreciation 

Carrying 

value 

Land and buildings 85,503 (4,567) 80,936 79,087 (4,501) 74,587 

Motor vehicles 7,982 (4,384) 3,598 6,806 (4,086) 2,720 

Office equipment 27,790 (17,006) 10,784 23,698 (15,483) 8,216 

Total 121,275 (25,957) 95,318 109,591 (24,070) 85,523 


Cost / 

Valuation 

Accumulated 

depreciation 

Carrying 

value 

Cost / 

Valuation 

Accumulated 

depreciation 

Carrying 

value 

Land and buildings 85,503 (4,567) 80,936 79,088 (4,501) 74,587 

Motor vehicles 7,882 (4,342) 3,540 6,756 (4,046) 2,710 

Office equipment 27,564 (16,826) 10,738 23,477 (15,322) 8,155 

Total 120,949 (25,735) 95,214 109,321 (23,869) 85,452 

Reconciliation of property, plant and equipment - Group - 2012 

Opening 

balance 

Additions Disposals Depreciation Total 

Land and buildings 74,586 6,416 - (66) 80,936 

Motor vehicles 2,720 1,503 (82) (543) 3,598 

Office equipment 8,215 4,600 (10) (2,021) 10,784 

Reconciliation of property, plant and equipment - Group - 2011 

85,521 12,519 (92) (2,630) 95,318 

Opening 

balance 





77,017 11,377 (78) (2,793) 85,523 

64



5. Property, plant and equipment (continued) 


Reconciliation of property, plant and equipment - Co-operative - 2012 



N$ '000 N$ '000 N$ '000 N$ '000 

Opening 

balance 


Buildings 74,587 6,415 - (66) 80,936 



Reconciliation of property, plant and equipment - Co-operative - 2011 

85,452 12,459 (92) (2,605) 95,214 

Opening 

balance 





76,905 11,372 (78) (2,747) 85,452 

Rent received from properties classified as property, plant and equipment amounted to N$ 6,8 million (2011: 

N$6.18million). 

Land and buildings comprise numerous properties spread throughout Namibia. Detailed information is maintained in 

a register which is open for inspection by members and their authorised agents at the co-operative’s registered 

office. Certain of the land and buildings have been encumbered as set out in note 17. 

6. Intangible assets 


Cost / 

Valuation 

Accumulated 

amortisation 

Carrying 

value 

Cost / 

Valuation 

Accumulated 

amortisation 

Carrying 

value 

Computer software, other 1,125 (382) 743 779 (157) 622 


Cost / 

Valuation 

Accumulated 

amortisation 

Carrying 

value 

Cost / 

Valuation 

Accumulated 

amortisation 

Carrying 

value 

Computer software, other 1,125 (382) 743 779 (157) 622 

65

6. Intangible assets (continued) 




Reconciliation of intangible assets - Consolidated and Co-operative - 2012 



N$ '000 N$ '000 N$ '000 N$ '000 

Opening 

balance 

Additions Amortisation Total 

Computer software, other 621 347 (225) 743 

Reconciliation of intangible assets - Consolidated and Co-operative - 2011 

Opening Additions Disposals Amortisation Impairment Total 

balance 

loss 

Computer software, other 1,097 162 (44) (246) (348) 621 

7. Investments in subsidiaries 

Name of company Carrying Carrying 

amount 2012 amount 2011 

Agra Properties (Pty) Ltd - 4 

"A" Shares in Guard Risk Cell 150 150 

Agra Oshivelo Retail (Pty) Ltd 181 3 

Ondangwa Service Station (Pty) Ltd 499 (13) 

Auas Veterinary and Medical Suppliers (Pty) Ltd - - 

The carrying amounts of subsidiaries are shown net of impairment losses. 

830 144 

During the current year under review, dividends of N$275,991 (70% interest) (2011: N$ 154,558) were declared by 

Ondangwa Service Station (Pty) Ltd. 

Subsidiary name Share capital 

(Number of 

shares) 

Holding Share N$ Loan N$ 

Agra Properties (Pty) Ltd 100 100 % 0.1 - 

"A" Shares in Guard Risk Cell 4,000,000 25 shares 150 - 

Agra Oshivelo Retail (Pty) Ltd 100 84 % 0.084 180 

Ondangwa Service Station (Pty) Ltd 1,000 70 % 0.7 499 

Auas Veterinary and Medical Suppliers 

(Pty) Ltd 

1 100 % 0.001 - 

The loans carry no interest and there are no fixed terms of repayment. 

8. Financial assets measured at fair value through profit or loss 

151 679 

At fair value through profit or loss - 

designated 

Shares at fair value 16,596 4,486 16,596 4,486 

66






N$ '000 N$ '000 N$ '000 N$ '000 

8. Financial assets measured at fair value through profit or loss (continued) 

Non-current assets 

At fair value through profit or loss - 

designated 

Fair value information 

16,596 4,486 16,596 4,486 

Financial assets at fair value through profit or loss are recognised at fair value, which is therefore equal to their 

carrying amounts. 

The fair value of listed shares has been determined by reference to the bid prices on the Johannesburg Securities 

Exchange at year-end. 

The fair value of unlisted shares has been determined according to most recent trading prices or net asset value. 

This hierarchy requires the use of observable market data when available. The group considers the relevant and 

observable market prices in its valuations where possible. 

Fair value hierarchy of financial assets at fair value through profit or loss 

For financial assets recognised at fair value, disclosure is required of a fair value hierarchy which reflects the 

significance of the inputs used to make the measurements. 

Level 1 represents those assets which are measured using unadjusted quoted prices for identical assets. 

Level 2 applies inputs other than quoted prices that are observable for the assets either directly (as prices) or 

indirectly (derived from prices). 

Level 3 applies inputs which are not based on observable market data. 

Level 1 

Equity securities 14 14 14 14 

Level 3 

Equity securities 16,582 4,472 16,582 4,472 

16,596 4,486 16,596 4,486 

67






N$ '000 N$ '000 N$ '000 N$ '000 

8. Financial assets measured at fair value through profit or loss (continued) 

Reconciliation of financial assets at fair value through profit or loss measured at level 3 


- Co-operate and group - 2012 

Opening 

balance 

Fair value 

gains or 

losses in 

profit or loss 

Addition Closing 

balance 

Class 1 14 - - 14 

Class 3 4,472 8,035 4,075 16,582 

4,486 8,035 4,075 16,596 


- Co-operate and group - 2011 

Opening 

balance 

Fair value 

gains or 

losses in 


Reclassificati 

on to trade 

receivables 

Closing 

balance 

Class 1 14 - - 14 

Class 3 4,497 (5) (20) 4,472 

9. Deferred tax 

Deferred tax asset/(liability) 

4,511 (5) (20) 4,486 

Amounts received in advance 655 509 655 500 

Consumables (328) (366) (328) (366) 

Impairment and other allowances 10,292 7,471 10,199 7,396 

Retirement benefit obligation 12,626 11,945 12,626 11,945 

Leasehold Improvements (317) (241) (317) (241) 

Actuarial adjustment on members fund 

valuation 

(197) (203) (197) (203) 

Capital allowances (20,985) (18,826) (20,963) (18,804) 

Reconciliation of deferred tax asset (liability) 

1,746 288 1,675 226 

At beginning of the year 288 701 226 635 

Income statement charge 1,458 (445) 1,449 (409) 

Prior period adjustment - 32 - - 

1,746 288 1,675 226 

68

10. Retirement benefits 




Post-employment medical benefits - Co-operative and group 



N$ '000 N$ '000 N$ '000 N$ '000 

The group operates a post-employment medical benefit scheme. The method of accounting, assumptions and the 

frequency of valuations are similar to those used for defined benefit pension schemes. The valuation on postretirement 

benefits is based on generally accepted actuarial methodology and long-term valuation assumptions. 

Movements for the year 

Opening balance 34,171 33,652 

Benefits paid (3,072) (2,891) 

Net expense recognised in profit or loss 5,062 3,410 

Net expense recognised in the income statement 

36,161 34,171 

Current service cost 1,323 38 

Interest cost 3,039 2,903 

Actuarial (gains) losses 700 469 

5,062 3,410 

69

10. Retirement benefits (continued) 

Key assumptions used 






N$ '000 N$ '000 N$ '000 N$ '000 

The subsidy is based on the Express Care Option on the date of actual retirement and is increased with inflation. 

The increase is not linked to Medical Aid contribution increase but are only increased for price inflation. 

The principal actuarial assumptions used for accounting purposes were: 

The principal actuarial assumptions used 

for accounting purposes were: 

Real rate of return 3.20 % 3.50 % 

Discount rate 8.00 % 9.30 % 

Price inflation rate 4.80 % 5.80 % 

Sensitivity analysis 

If rates changed by one percentage 

point, the retirement benefit obligation 

would have been as follows: 

Real rate of return decrease to 2.2% N$ 39.1m N$ 37.1m 

Real rate of return increase to 4.2% N$ 33.6m N$ 31.7m 

Accrued liabilities 

Real interest rate (N$'000) 

4.2% 3.2% 

(Valuation 

basis) 

- Current employees members 252 284 322 

- Current pensioner members 33,371 35,874 38,750 

2.2% 

33,627 36,161 39,074 

The above table show the financial position of the PRMA scheme liability is sensitive to changes in financial 

assumptions. 

If the main actuarial assumptions made in the valuation of the PRMA scheme hold true, then the expected liability 

as at 31 July 2013 is set out in the table below: 

N$’000 

Accrued liability: 31.07.2012 36,161 

Interest cost (8.0%) 2,893 

Current service cost 7 

Benefits paid (estimate) (3,270) 

Accrued liability: 31.07.2013 35,791 

Particulars in respect of the current employee members belonging to the medical aid for which Agra has a postretirement 

medical aid liability as at the financial year end date are as follows: 

Current employee members: 

70






N$ '000 N$ '000 N$ '000 N$ '000 

10. Retirement benefits (continued) 

Number of employees 1 3 

Average age (years) 62 62 

63 65 

Current pensioner members: 

Number of employees 101 102 

Average age (years) 74 73 

Employees who have joined Agra after 1 August 1998 do not receive any post-retirement medical aid benefits. 

The mortality assumption was based on, for both before and after retirement, the British derived a(55) life table less 

a 3 year age adjustment. This is consistent with the pensioner mortality assumption that are used for valuing 

retirement funds in Namibia. 

11. Prepayments 

The board approved the N$ 26mil purchase of erven 200, 201 and 202 in the Trustco Industrial Park in the Lafrenz 

Industrial area in Windhoek. Contracts were signed on the 13 April 2012 but as at 31 July 2012 the properties were 

not yet transferred to Agra. 

Prepayments 3,681 - 3,681 - 

12. Inventories 

Finished goods 117,369 92,911 116,579 92,371 

Consumables 359 1,078 359 1,078 

117,728 93,989 116,938 93,449 

Provision for obsolete stock (1,633) (987) (1,624) (986) 

13. Trade and other receivables 

116,095 93,002 115,314 92,463 

Trade receivables 74,058 89,082 73,797 88,882 

VAT 5,152 1,668 4,741 1,446 

Provision for doubtful debts (22,360) (21,167) (22,325) (21,130) 

Other receivables 7,931 10,279 7,850 9,933 

Trade and other receivables pledged as security 

64,781 79,862 64,063 79,130 

The trade receivables balance has been ceded to Bank Windhoek Limited as security for the bank overdraft 

facilities. On year-end the bank overdraft facilities utilised by the group amounted to N$ 11.9 million and the cooperative 

amounted to N$ 14.1 million (2011: group - N$17.2 million and co-operative - N$18.7 million), refer to note 

17. No other specific terms and conditions relate to the pledge. 

Interest is charged on overdue trade debtors at a rate of prime plus 3% (2011: prime plus 3%) and on overdue 

livestock debtors at a rate of prime plus 3% (2011: prime plus 3%). 

71



13. Trade and other receivables (continued) 




N$ '000 N$ '000 N$ '000 N$ '000 

At year-end the carrying amounts of the accounts receivable approximate their fair values due to the short-term 

maturities of these assets. 

Credit quality of trade and other receivables 

Trade receivables 

Counterparties without external credit 

rating 

Trade receivables 59,629 78,194 59,322 77,684 

Fair value of trade and other receivables 


72





Credit risk and credit quality of trade and other receivables 



N$ '000 N$ '000 N$ '000 N$ '000 

The co-operative's and group’s standard credit terms are 30 days after statement for trade and other receivables 

and 7 days for livestock receivables. The ageing of the components of trade receivables at year end was: 

Consolidated 

Retail receivables Gross 


N$'000 

Impairment 


N$'000 

Gross 

2011 

N$'000 

Impairment 

2011 

N$'000 

Not past due 23,382 (37) 20,969 - 

Past due – 0 to 30 days 6,773 (26) 5,225 (5) 


Past due – 61 to 180 days 1,859 (191) 938 (204) 

More than 181 days 5,776 (3,747) 3,652 (2,489) 

Total 40,147 (4,029) 32,473 (2,789) 

Livestock receivables 

Not past due 12,330 (754) 23,679 - 


Past due – 31 to 60 days 215 (72) 1,578 (326) 

Past due – 61 to 180 days 4,459 (2,981) 6,079 (5,322) 

More than 181 days 14,250 (14,446) 12,521 (12,340) 

Total 33,911 (18,331) 56,610 (18,365) 

Other receivables 

Not past due - - - (11) 

Past due – 0 to 30 days - - - - 



More than 181 days - - - - 

Total - - - (11) 

Total trade receivables 74,059 (22,360) 89,083 (21,167) 

73




Co-operative 


Retail receivables Gross 




N$ '000 N$ '000 N$ '000 N$ '000 

N$'000 

Impairment 


N$'000 

Gross 

2011 

N$'000 

Impairment 

2011 

N$'000 

Not past due 23,363 (37) 20,842 - 



Past due – 61 to 180 days 1,838 (191) 937 (204) 

More than 181 days 5,740 (3,712) 3,628 (2,464) 

Total 39,887 (3,994) 32,269 (2,764) 

Livestock receivables 

Not past due 12,330 (754) 23,679 - 


Past due – 31 to 60 days 215 (72) 1,578 (326) 

Past due – 61 to 180 days 4,459 (2,981) 6,079 (5,322) 

More than 181 days 14,250 (14,446) 12,521 (12,340) 

Total 33,911 (18,331) 56,610 (18,366) 

Other receivables 

Not past due - - - - 




More than 181 days - - - - 

Total - - - - 

Total trade receivables 73,799 (22,325) 88,879 (21,130) 

No trade and other receivables are denominated foreign currencies: 

Reconciliation of provision for impairment of trade and other receivables 

Opening balance 21,167 16,164 21,130 15,961 

Written off (1,621) (1,344) (1,621) (1,159) 

Additional provision (reversed)/raised 2,813 6,347 2,815 6,328 

22,359 21,167 22,324 21,130 

The co-operative and group have not renegotiated the term of receivables and do not hold any collateral or 

guarantees as security. 

74

14. Cash and cash equivalents 

Cash and cash equivalents consist of: 






N$ '000 N$ '000 N$ '000 N$ '000 

Cash on hand 4,329 6,013 4,209 5,823 

Bank balances 28,618 29,496 27,983 27,559 

Other cash and cash equivalents 55 19 55 19 

Credit quality of cash at bank and short term deposits, excluding cash on hand 

33,002 35,528 32,247 33,401 

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor 

impaired can be assessed by reference to external credit ratings or historical information about counterparty default 

rates: 

Credit rating 

Standard Bank Group Limited F1+ (ZAF) 365 729 322 699 

Bank Windhoek Limited A1+ 16,840 27,891 16,376 25,984 

First National Bank Namibia Limited F1+ 

(ZAF) 

11,413 876 11,285 876 

15. Share capital 

28,618 29,496 27,983 27,559 

Reconciliation of number of shares 

issued: 

Reported as at 01 August 2011 406 408 406 408 

Shares redeemed (3) (2) (3) (2) 

403 406 403 406 

The nominal value of each ordinary share is N$1, payable in full on application and is limited to 500 shares per 

member. 

16. Other reserves 

Consolidated and Co-operative: 

Fair value reserve 6,622 6,622 6,622 6,622 

General reserve 10,917 10,917 10,917 10,917 

Deferred expenditure fund 3,994 3,994 3,994 3,994 

21,533 21,533 21,533 21,533 

The group transfers all fair value adjustments in respect of investment properties to a fair value reserve. 

75

17. Borrowings 






N$ '000 N$ '000 N$ '000 N$ '000 

Held at amortised cost 

Long term bank borrowings 2,296 5,216 2,296 5,216 

Short term bank borrowings 2,921 2,114 2,921 2,114 

Bank overdraft 11,538 17,176 13,753 18,701 

Other loans 40 40 40 40 

16,795 24,546 19,010 26,071 

Bank borrowings are due to Bank Windhoek Limited and are secured by a first continuing covering mortgage bond 

of N$20 million (2011: N$20 million) over certain land and buildings, Erf 2225 Windhoek, included in property, plant 

and equipment with a net book value of N$ 41,435,672 (2011: N$41,435,672). The loans bear interest at a rate of 

8.29% p.a. (85% of prime overdraft rate) (2011: 8.29% p.a. (85% of prime overdraft rate)) compounded monthly, 

payable on a monthly basis. The capital is repayable in 27 (2011: 39) monthly instalments of N$ 220,237 (2011: 

N$220,237). 

Non-current liabilities 

At amortised cost 2,296 5,216 2,296 5,216 

Current liabilities 

At amortised cost 14,499 19,330 16,714 20,855 

16,795 24,546 19,010 26,071 

The carrying amounts and fair value of the non-current borrowings and current borrowings approximates its fair 

value. 

The bank overdraft is secured by means of a cession of trade and livestock debtors to Bank Windhoek Limited. 

The maturity of bank borrowings is 

as follows: 

Not later than one year 2,921 2,115 

Later than one year, but not later than 

five years 

2,296 5,216 

Later than five years - - 

5,217 7,331 

76

18. Severance pay provision 




Reconciliation of severance pay provision - Co-operative and group - 2012 

Opening 

balance 

Interest 

charged 



N$ '000 N$ '000 N$ '000 N$ '000 

Service costs Actuarial 

gains and 

losses 

Benefits paid Total 

Provision for severance pay 961 78 61 (43) (84) 973 

Reconciliation of severance pay provision - Co-operative and group - 2011 

Opening 

balance 

Interest 

charged 

Service costs Actuarial 

gains and 

losses 

Provision for severance pay 836 80 102 (57) 961 

The principle actuarial assumptions used for the valuation are as follows: 

2012 2011 

Discount rate 8.00% 9.30% 

Price inflation rate 6.30% 7.30% 

Mortality SA 56 - 62 SA 56 - 62 

Mortality table Mortality table 

19. Members' funds 

Consolidated and Co-operative 


N$'000 N$'000 

Opening balance 41,704 41,187 

Repaid due to resignation (448) (442) 

Actuarial fair value adjustment 16 959 

41,272 41,704 

If the financial structure of the co-operative justifies the refund of contributions, such refunds shall be made on 

rotation or on death of the member or when member ceases farming activities and refund is approved by the 

members at a general meeting on recommendation of the board. There is no interest payable on members’ funds. 

The members’ funds are discounted since it does not contain a demand feature. Also refer to note 1.2 significant 

judgements and sources of estimation uncertainty regarding the assumptions used to calculate the fair value of the 

members’ funds. 

Total 

77

20. Bonus share 






N$ '000 N$ '000 N$ '000 N$ '000 

Consolidated and Co-operative 


N$’000 N$’000 

At the beginning of the year 1,186 1,207 

– Shares redeemed (25) (23) 

– Other movements 1 2 

At the end of the year 1,162 1,186 

The fair value of the bonus shares equal their carrying amount, as the impact of discounting is immaterial. 

21. Current tax receivable / (payable) 

The current tax balance is made up as follows: 

Current tax receivable 

Current tax receivable 619 643 532 629 

Current tax payable 

Current tax payable (379) (462) - - 

Total current tax receivable / 

(payable) 

22. Trade and other payables 

240 181 532 629 

Trade payables 80,838 77,521 80,429 75,958 

Accrued leave pay 5,767 5,207 5,641 5,106 

Accrued bonus 20,254 16,383 20,137 16,262 

Other payables 9,948 10,027 9,652 10,154 

Fair value of trade and other payables 

116,807 109,138 115,859 107,480 

Trade payables 116,807 109,138 115,859 107,480 

At year-end the carrying amounts approximate their fair value due to the short-term maturities of these liabilities. 

78

23. Operating profit 




Operating profit for the year is stated after accounting for the following: 



N$ '000 N$ '000 N$ '000 N$ '000 

Operating lease charges 

Premises 

Contractual amounts 1,165 833 853 521 

Equipment 

Contractual amounts 8 12 - - 

1,173 845 853 521 

(Loss) profit on sale of property, plant 

and equipment 

(52) (9) (52) (9) 

Depreciation on property, plant and 

equipment 

2,855 3,388 2,830 3,341 

Employee costs 104,730 89,598 103,703 88,662 

Expenses by nature 

Cost of sales 887,550 782,010 849,181 749,078 

Advertising 3,287 3,805 3,277 3,787 

Bad debts 3,728 6,035 3,730 6,016 

Computer expenses 4,323 4,059 4,221 3,976 

Commission paid 15,540 19,684 15,514 19,544 

Depreciation, amortisation and 

2,855 3,387 2,830 3,341 

impairments 

Directors costs 1,036 902 1,036 902 

Employee costs 104,730 89,598 103,703 88,662 

Insurance 2,078 2,103 2,032 2,055 

Utilities 5,697 4,724 5,354 4,438 

Transport and freight 1,266 1,011 1,266 1,011 

Motor vehicle expenses 2,196 1,783 2,170 1,759 

Printing and stationery 1,392 1,519 1,371 1,505 

Repairs and maintenance 4,318 2,539 4,271 2,522 

Other expenses 23,786 19,638 20,884 17,820 

Total distribution costs and 

administrative expenses 

Total cost of sales, distribution costs 

and administrative expenses 

176,232 160,787 171,659 157,338 

1,063,782 942,797 1,020,840 906,416 

79

24. Investment income 






N$ '000 N$ '000 N$ '000 N$ '000 

Interest income 

Interest income on current bank account 1,834 1,226 1,770 1,177 

Accounts receivable 3,429 3,262 3,429 3,261 

Other interest income 24 16 24 16 

25. Finance costs 

5,287 4,504 5,223 4,454 

Trade and other payables 8 (326) 8 (330) 

Bank 648 1,206 648 1,206 

26. Income tax expense 

Major components of the income tax expense 

656 880 656 876 

Current 

Current tax 14,467 11,277 13,813 10,734 

Deferred 

Deferred tax (1,458) 445 (1,449) 409 

Reconciliation of the income tax expense 

Reconciliation between accounting profit and tax expense. 

13,009 11,722 12,364 11,143 

Accounting profit 44,414 36,252 43,882 34,194 

Tax at the applicable tax rate of 34% 

(2011: 34%) 

15,563 12,162 14,918 11,626 

Tax effect of adjustments on taxable 

income 

Non-taxable income (2,554) 20 (2,554) (138) 

Deferred tax prior year tax adjustment - (460) - (345) 

27. Auditors' remuneration 

13,009 11,722 12,364 11,143 

Fees 1,046 853 916 750 

28. Other income 

Management fees 643 438 1,169 892 

Fees earned 2,551 2,989 - - 

80






N$ '000 N$ '000 N$ '000 N$ '000 

28. Other income (continued) 

Revaluation of investment properties - 3,652 - 3,652 

Revaluation of financial assets 8,035 - 8,035 - 

Rental income 8,324 7,511 8,324 7,511 

Bonus received - 8 - 8 

Bad debts recovered 1,251 1,202 1,251 1,017 

Dividend income 442 1 718 156 

Other income 9,267 6,299 8,920 5,996 

29. Cash generated from (used in) operations 

30,513 22,100 28,417 19,232 

Profit before taxation 

Adjustments for: 

44,414 36,252 43,882 34,194 

Depreciation and amortisation 2,855 3,387 2,830 3,341 

Loss (profit) on sale of assets 52 9 52 9 

Interest received (5,287) (4,504) (5,223) (4,454) 

Finance costs 656 880 656 876 

Movements in operating lease assets 

and accruals 

- (3,652) - (3,652) 

Movements in retirement benefit assets 

and liabilities 

1,990 519 1,990 519 

Movements in provision for severance 

pay 

12 125 12 125 

Movement in fair value of financial 

(8,035) 5 (8,035) 5 

assets 

Actuarial valuation on Members’ fund 16 959 16 959 

Other non-cash items 623 230 (687) 230 

Changes in working capital: 

Inventories (23,093) (10,869) (22,851) (11,064) 


Prepayments (3,681) - (3,681) - 

Trade and other payables 7,669 13,701 8,379 12,792 

30. Tax paid 

32,638 44,823 32,397 42,169 

Balance at beginning of the year 181 1,018 629 1,051 

Current tax for the year recognised in 


(14,467) (11,277) (13,813) (10,734) 

Balance at end of the year 240 182 532 630 

(14,526) (10,441) (13,716) (10,313) 

81

31. Commitments 

Authorised capital expenditure 

Capital expenditure approved by the 

directors, not yet contracted 






N$ '000 N$ '000 N$ '000 N$ '000 

160,602 8,082 160,602 8,082 

The sharp increase in capital expenditure is due to the development of the Trustco property. See details in note 35. 

Operating lease commitments – where a group company is the lessee 

The group leases various retail outlets under non-cancellable operating lease agreements. The leases have 

varying terms, escalation clauses and renewal rights. The group also leases various plant and machinery under 

cancellable operating lease agreements. The group is required to give a six-month notice for the termination of 

these agreements. 

The future aggregate minimum lease 

payments under non-cancellable 

operating leases are as follows: 

- within one year 2,776 770 2,464 458 

- in second to fifth year inclusive 5,364 1,307 4,869 500 

- later than five years - - - - 

The future minimum lease receivables 

under operating leases are as follows: 

- - - - 

- within one year 5,199 4,953 5,199 4,953 

- in second to fifth year inclusive 8,078 6,611 8,078 6,611 

- later than five years - - - - 

Guarantees 

The co-operative has a contingent liability in favour of Bank Windhoek Limited in respect of guarantees supplied 

by the bank on behalf of the co-operative. 

These guarantees are: 

Ministry of Agriculture 500 500 500 500 

Millennium Challenge 72 72 72 72 

572 572 572 572 

The co-operative has a contingent liability in favour of Standard Bank Namibia Limited in respect of guarantees 

supplied by the bank on behalf of the co-operative. 

Meatboard of Namibia 225 - 225 - 

Various - 572 - 572 

Department of Finance 200 - 200 - 

Department of Water Affairs 293 - 293 - 

82

32. Related parties 




` 

Relationships 

Subsidiaries Refer to note 7 

Related party balances 



N$ '000 N$ '000 N$ '000 N$ '000 

Amounts included in Trade receivable 

regarding related parties 


Amounts included in Trade Payable 

regarding related parties 

"A" Shares in Guard Risk Cell (87) (55) 

Related party transactions 

Management fees received from: 

Ondangwa Service Station (Pty) Ltd 

(subsidiary) 

Dividends received from: 

Ondangwa Service Station (Pty) Ltd 

(subsidiary) 

516 454 

276 155 

Gross insurance premiums paid to 

"A" Shares in Guard Risk Cell 2,551 2,989 

Administration fees to (received from) 

related parties 


Claims paid to (received from) related 

parties 

"A" Shares in Guard Risk Cell 1,337 1,327 

Interest paid to (received from) 


"A" Shares in Guard Risk Cell (114) (53) 

Taxation paid to (received from) 



Compensation to directors and other 

key management 

Salaries and other short-term employee 

benefits 

6,224 5,052 

Allowances and other costs 2,696 2,222 

Bonuses 2,675 1,574 

Social security 6 5 

83

32. Related parties (continued) 

Pension costs – defined contribution 

plan 

Medical aid fund contributions and 

allowances 

33. Directors' emoluments 

Non-executive 


2011 

34. Pension scheme 






N$ '000 N$ '000 N$ '000 N$ '000 

739 582 

207 172 

12,547 9,607 

Honoraria Travel costs Total 

829 207 1,036 

Honoraria Travel costs Total 

618 284 902 

All of the group’s permanent employees are members of the Agra Retirement Fund which is a defined contribution 

fund governed by the Pension Funds Act of Namibia. A statutory actuarial valuation was carried out on 31 July 

2012. In the actuary’s opinion the fund was in a sound financial position. The employer is currently contributing at a 

rate of 15% of total salaries. 

35. Contingent liability 

The board approved a N$ 26mil purchase of erven 200, 201 and 202 in the Trustco Industrial Park in the Lafrenz 

Industrial area on the 13 April 2012. The purchase is subject to an approval of the loan by the bank. 

A prepayment was made with regard to the above transaction before year end (See note 11). 

84



Detailed Statement of Comprehensive Income 



Note(s) N$ '000 N$ '000 N$ '000 N$ '000 

Revenue 

Sale of goods 1,073,052 953,325 1,031,738 917,800 

Cost of sales 

Opening stock (93,989) (82,461) (93,449) (82,461) 

Purchases (911,289) (793,538) (872,670) (760,066) 

Closing stock 117,728 93,989 116,938 93,449 

(887,550) (782,010) (849,181) (749,078) 

Gross profit 185,502 171,315 182,557 168,722 

Other income 

Management fees 643 438 1,169 892 

Fees earned 2,551 2,989 - - 

Fair value adjustment on investment 

property 

- 3,652 - 3,652 

Fair value adjustment on financial assets 8,035 - 8,035 - 

Rental income 8,324 7,511 8,324 7,511 

Bonus received - 8 - 8 

Bad debts recovered 1,251 1,202 1,251 1,017 

Dividend income 442 1 718 156 

Other income 9,267 6,300 8,920 5,996 

Interest received 24 5,287 4,503 5,223 4,454 

35,800 26,604 33,640 23,686 

Expenses (Refer to page 86) (176,232) (160,787) (171,659) (157,338) 

Operating profit 23 45,070 37,132 44,538 35,070 

Finance costs 25 (656) (880) (656) (876) 

Profit before taxation 44,414 36,252 43,882 34,194 

Taxation 26 13,009 11,722 12,364 11,143 

Profit for the year 31,405 24,530 31,518 23,051 

85 

The supplementary information presented does not form part of the annual financial statements and is unaudited



Operating expenses 

Advertising (3,287) (3,805) (3,277) (3,787) 

Auditors remuneration 27 (1,046) (853) (916) (750) 

Bad debts (3,728) (6,035) (3,730) (6,016) 

Bank charges (3,519) (3,274) (3,353) (3,161) 

Cleaning (370) (390) (355) (378) 

Commission paid (15,540) (19,684) (15,514) (19,544) 

Computer expenses (4,323) (4,059) (4,221) (3,976) 

Consumables (12) (25) (12) (25) 

Depreciation, amortisation and 

impairments 

(2,855) (3,388) (2,830) (3,341) 

Director's cost (1,036) (902) (1,036) (902) 

Employee costs (104,730) (89,598) (103,703) (88,662) 

Entertainment and promotions (44) (144) (44) (144) 

Fees paid (1,024) (1,740) - - 

Health & Safety (6) - (6) - 

Insurance (2,078) (2,103) (2,032) (2,055) 

Lease rentals on operating lease (1,173) (845) (853) (521) 

Legal expenses (401) (447) (400) (447) 

Levies (65) 4 (62) 5 

Loss on disposal of assets (52) (9) (52) (9) 

Motor vehicle expenses (2,196) (1,783) (2,170) (1,759) 

Other consulting and professional fees (2,520) (1,414) (2,497) (1,387) 

Other expenses (6,807) (4,759) (5,706) (5,376) 

Packaging (830) (683) (830) (683) 

Postage (397) (402) (397) (402) 

Printing and stationery (1,392) (1,519) (1,371) (1,505) 

Repairs and maintenance (4,318) (2,539) (4,271) (2,522) 

Security (1,801) (1,720) (1,716) (1,645) 

Staff welfare (3) (3) - - 

Subscriptions (215) (187) (213) (182) 

Telephone and fax (1,576) (1,483) (1,551) (1,453) 

Training (1) - - - 

Transport and freight (1,266) (1,011) (1,266) (1,011) 

Travel - local (1,777) (1,122) (1,774) (1,121) 

Travel - overseas (147) (141) (147) (141) 

Water and Electricity (5,697) (4,724) (5,354) (4,438) 

(176,232) (160,787) (171,659) (157,338) 

86

Complete 2012 Annual Report - Agra

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