Corporate Governance Report - The United Basalt Products Ltd

Dear Shareholder,
The Board of Directors is pleased to present the
Annual Report of The United Basalt Products Ltd
for the year ended June 30, 2007, the contents of
which are listed below.
This report was approved by the Board of Directors
on November 19, 2007.
Thierry Lagesse
Chairman
Contents
3
5
6
7
8
10
11
15
20
25
26
27
28
29
31
32
63
Jean-Michel Giraud
Managing Director
Notice of Meeting to Shareholders
Corporate Information
Directors’ Profiles
Group Shareholding Structure
Financial Highlights
Value Added Statement
Chairman’s Report
Corporate Governance Report
Other Statutory Disclosures
Certificate from the Company Secretary
Report of the Auditors to the Members
Balance Sheets
Income Statements
Statements of Changes in Equity
Cash Flow Statements
Notes to the Financial Statements
Proxy Form

Notice of Meeting to Shareholders
Notice is hereby given that the Annual Meeting of Shareholders of the Company will be held at its registered office,
Trianon, Quatre Bornes, on Friday December 21, 2007 at 15.00 hours for the following purposes:
1. To receive, approve and adopt the Minutes of Proceedings of the preceding Annual Meeting held on
December 27, 2006.
2. To receive, approve and adopt the Audited Financial Statements for the year ended June 30, 2007 and reports
of the Directors thereon.
3. To re-appoint Mr Jean Giraud, aged above 70, to continue to hold office as Director of the Company until the
next Annual Meeting in accordance with sec 138 (6) of the Companies Act 2001.
4. To re-appoint Mr J. Cyril Lagesse, aged above 70, to continue to hold office as Director of the Company until
the next Annual Meeting in accordance with sec 138 (6) of the Companies Act 2001.
5. To appoint as Director of the Company, Mr Jean Claude Maingard who was nominated by the Board and who
offers himself for appointment.
6. To re-appoint Ernst & Young as Auditors for the year ending June 30, 2008 and to authorise the Board of Directors
to fix their remuneration.
By Order of the Board
Christophe Quevauvilliers F.C.C.A.
Company Secretary
November 19, 2007
A member of the Company entitled to attend and vote at this meeting may appoint a proxy
(whether a member or not) to attend and vote on his/her behalf. The instrument appointing
a proxy or any general power of attorney shall be deposited at the registered office of the
Company, Trianon, Quatre Bornes, not less than twenty-four hours before the time fixed for
the holding of the meeting or else the instrument of proxy shall not be treated as valid.
A proxy form is included at the end of the Annual Report for this purpose.
For the purpose of this Annual Meeting, the Directors have resolved, in compliance with
Section 120(3) of the Companies Act 2001, that the shaholders who are entitled to receive
notice of the meeting and attend such meeting shall be those shareholders whose names
are registered in the share register of the Company as at November 23, 2007.
ANNUAL REPORT 2007

Corporate Information
Board of Directors
Thierry Lagesse - Chairman
Jean Paul Adam C.B.E.
François Boullé
Marc Freismuth
Jean Giraud
Jean Michel Giraud
Joël Harel
J. Cyril Lagesse
Alternate : Arnaud Lagesse
Raymond Lagesse
E. Jean Mamet
Audit Committee
E. Jean Mamet - Chairman
François Boullé
Joël Harel
Corporate Governance Committee
Thierry Lagesse - Chairman
Marc Freismuth
Joël Harel
Managing Director
Jean Michel Giraud
Company Secretary
Christophe Quevauvilliers F.C.C.A.
Auditors
Ernst & Young
Bankers
The Mauritius Commercial Bank Ltd
Barclays Bank PLC
HSBC (Mauritius) Ltd
State Bank of Mauritius Ltd
Legal Form
The United Basalt Products Ltd is a public
company incorporated in Mauritius and
listed on the Stock Exchange of Mauritius
Registered Office
Trianon, Quatre Bornes, Mauritius
ANNUAL REPORT 2007

Directors’ Profiles
Thierry Lagesse Chairman
Mr Thierry Lagesse was appointed Director of the Company in
December 1989 and subsequently Chairman of the Board in
December 2002. Born in 1953, Mr Lagesse holds a ‘Maîtrise des
Sciences de Gestion’ from the University of Paris Dauphine. He has
been the founder and Executive Chairman of the Palmar Group of
Companies for the last twenty-five years, an international textile
and garment manufacturing group. He is also the promoter and
Chairman of both Companhia de Sena, a sugar estate and a sugar
processing and refining factory in Mozambique and Parabole
Réunion SA, a Direct to Home Satellite TV company in the media
and communication fields across the islands of the Indian Ocean.
Mr Lagesse also sits on the Board of several of the major Mauritian
companies and is also the Chairman of Flacq United Estates
Ltd, Phoenix Beverages Ltd, Compagnie Desmem Limitée and
Compagnie d’Investissement et de Developpement Limitée and
Director of Ireland Blyth Ltd and Sun Resorts Ltd. He is a member of
the Mauritius Chamber of Agriculture and was in 1995, Chairperson
of the Mauritius Export Processing Zone Association.
Jean Paul Adam C.B.E.
Mr Jean Paul Adam was appointed Director of the Company in
June 2001. Born in 1934, Mr Adam is the ex-Chairman and now a
Director of General Construction Ltd a well known firm of building
and civil engineering contractors operating in Mauritius for almost
fifty years now. Mr Adam was formerly Chairman of The Mauritius
Commercial Bank Ltd and of The Mauritius Union Assurance Co.
Ltd. He also sits on the Board of several Mauritian companies. On
account of his contribution to the construction industry, Mr Adam
was made Commander of the British Empire (C.B.E.) in 1989 and
Grand Officer of the Star and Key of the Indian Ocean (G.O.S.K.)
in 1999. In 1997 he became Chevalier de l’Ordre de St. Grégoire Le
Grand (K.C.S.G.), a title conferred to him by Pope Jean Paul II.
François Boullé
Mr François Boullé was appointed alternate Director to late
Mr Jacques Lagesse in 1998 and full-fledged Director of the
Company in May 2004. Born in 1948, Mr Boullé holds a degree
from the ‘Institut d’Etudes Politiques de Paris (Sciences Po –
Section Economique et Financière). He is currently the Managing
Director of Suchem Ltd, a company specialized in importation and
distribution of chemicals for textiles and other industries, plastic
raw-materials and sprayers for agriculture.
Marc Freismuth
Mr Marc Freismuth was appointed Director of the Company
in March 2006. Born in France in 1952, Mr Freismuth holds a
‘Diplôme d’Etudes Supérieures de Sciences Economiques’ from
the University of Panthéon-Sorbonne(Paris). He has been lecturer
at the University of Montpellier up to July 1988 when he decided
to join the University of Mauritius as lecturer in management and
finance up to July 1994. Whilst at this position, Mr Freismuth has
contributed to the setting up of the Stock Exchange of Mauritius
as consultant to the ‘Stock Exchange Commission’ and member of
the ‘Listing Committee’. Mr Freismuth is currently self-employed
as consultant in management and finance. He also sits as Director
on the Board of several public companies.
Jean Giraud
Mr Jean Giraud was appointed Director of the Company in October
1956. Born in 1919, Mr Giraud was one of the founder members
of the Company of which he was the Manager from 1953 to
1984. He has largely contributed to establish the reputation of the
Company over the years and to the participation in most of the
major infrastructure projects of the country.
Jean Michel Giraud
Mr Jean Michel Giraud joined the Company in 1974 and became
General Manager in 1984 succeeding his father at this position.
He was appointed Managing Director in November 2004. Born in
1950, Mr Giraud is the Chairman of Pre-mixed Concrete Ltd and
sits on several Boards within the Group. Former President of the
Mauritius Turf Club, he is currently the President of the Mauritius
Tennis Federation.
Joël Harel
Mr Joël Harel was appointed alternate Director to Mr Jean Raymond
Harel in May 2004 and became full-fledged Director of the
Company with effect from July 1, 2006. Born in 1967, Mr Harel
holds a National Higher Diploma in Mechanical Engineering from
Cape Technikon in Cape Town. He is currently the Projects Manager
at Emineo Ltd, a newly incorporated company in partnership with
Robert Le Maire Ltd, involved in proposing engineering solutions
and in the realisation of projects locally and overseas, mainly in
the sugar sector.
J. Cyril Lagesse
Mr J.Cyril Lagesse was appointed Director of the Company in
November 1958. Well known entrepreneur, Mr Lagesse, born in
1932, took over his father’s business in 1969 (Mon Loisir S.E.) and
set up the ‘Compagnie d’Investissement et de Développement Ltée’
in the early 1970’s, to take advantage of the diverse investment
opportunities that arose, while Mauritius moved towards greater
industrialisation. Since then, the ‘Groupe Mon Loisir’(GML) grew
in size, and is now the major shareholder of several other well
established firms. Mr Lagesse represents GML on the Board of
Directors of several most prestigious Mauritian companies, many
of which are listed on the Stock Exchange of Mauritius. He is also a
former Chairman and Director of the Mauritius Commercial Bank Ltd.
Raymond Lagesse
Mr Raymond Lagesse was appointed full-fledged Director of the
Company in replacement of Mr Clément Lagesse in October 2004.
Born in 1958, Mr Lagesse holds a certificate in Technical Road
Transportation and a Diploma in Management. He is currently the
Managing Director of Mechanical Transport Co. Ltd, a company
specialized in the Road Haulage Industry. Mr Lagesse also sits on
the Board of several companies in Mauritius and Madagascar.
Arnaud Lagesse
Mr Arnaud Lagesse was appointed alternate Director to Mr J. Cyril
Lagesse in March 1994. Born in 1968, Mr Lagesse holds a
‘Maîtrise de Gestion’ from the University of Aix-Marseille III and
is a Graduate of the ‘Institut Supérieur de Gestion’ from France.
He also completed an Executive Education Program at INSEAD
Fontainebleau, France. He joined the ‘Groupe Mon Loisir’ in 1995
as Finance and Administrative Director, and was appointed as Chief
Executive Officer in August 2005. He participated in the National
Corporate Governance Committee as a member of the Board of
Directors’ sub committee and sits on the Board of several of the
country’s major companies. Mr Lagesse is an ex-President of the
Mauritius Chamber of Agriculture, the Mauritius Sugar Producers
Association and the Sugar Industry Pension Fund.
E. Jean Mamet
Mr E.Jean Mamet was appointed Director of the Company in November
2004 and is currently the Chairman of the Audit Committee. Born in
1943, Mr Mamet is a fellow member of the Association of Chartered
Certified Accountants. He has been in practice for forty-three years
involved in auditing and consulting services up to 2003 when he
retired as Managing Partner of Ernst & Young Mauritius. He is currently
the Vice Chairman of The Mauritius Commercial Bank Ltd.
THE UNITED BASALT PRODUCTS LTD
Subsidiaries as at June 30, 2007
100 %
100 %
100 %
100 %
76.5%
100 %
100 %
100 %
100 %
100 %
* Dormant as from July 2007
Marbella Espace Maison Ltée
Cie de Gros Cailloux Ltée
Société d’investissement Rodriguais
UBP International Ltd
Ste Marie Crushing Plant Ltd
Société des Petits Cailloux
Marbella Ltd
Land Reclamation Ltd
Stone & Bricks Co Ltd
The Stone Masters Co Ltd
Pricom Ltd *
Associates as at June 30, 2007
Operational
Dormant
** Via UBP International Ltd
THE UNITED BASALT PRODUCTS LTD
Group
Shareholding
Structure
75.9 % Welcome Industries Ltd
100 % UBP Madagascar
71.7% United Granite Product (Pvt) Ltd
46 % Produits Basaltiques du Nord Ltée
34 % Prochimad Mines et Carrières**
30 % Pre-Mixed Concrete Ltd
30 % Compagnies des Transports Réunis Ltée
25.5 % Highway Properties Ltd
25 % Sud Concassage Ltée
25 % Cement Transport Ltd
100 % DHK Metal Crusher (Pvt) Ltd
100 % Sheffield Trading (Pvt) Ltd
20 % Compagnie d’Exploitation Agricole Ltée
ANNUAL REPORT 2007 ANNUAL REPORT 2007
7

Financial Highlights
June 30, 2007
THE GROUP
2007 200
Income Statement Rs’000 Rs’000
Revenue 1,404,40 1,355,677
EBITDA 214, 71 214,965
Depreciation and amortisation (111,288) (100,001)
Operating profit 10 ,28 114,964
Net finance costs (7 ,22 ) (50,763)
Share of results of associates 11,748 11,771
Exceptional items 11,2 -
Profit before taxation 0,0 9 75,972
Profit for the year 4,21 60,504
Rs Rs
Earnings per share 1. 4 2.78
Earnings per share excluding exceptional items 1.0 2.78
Dividend per share 1. 0 1.50
2007 200
Balance Sheet Rs’000 Rs’000
Total assets 2,8 8,28 2,160,699
Interest bearing debts 1,011,7 1 870,648
Borrowings excluding bank overdraft 79,0 686,568
Shareholders’ interests 1, 0, 78 929,688
Rs Rs
Net assets value per share 70.18 42.09
Financial Ratios 2007 200
Revaluation
Before After
Operating margin - % 7. 7. 8.48
Interest cover - times 1. 4 1. 4 1.78
Dividend cover - times 1.0 1.0 1.83
Return on equity - % .47 2.28 6.50
Return on assets - % 1.20 1.20 2.84
Debt to equity – times 1.0 0. 0.94
Net Assets per share
80
70
60
50
40
30
20
10
0
Shareholders’ Fund
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Share Price
43.00
42.00
41.00
40.00
39.00
38.00
37.00
2005
2006 2007
2005 2006 2007
2005 2006 2007
Earnings per share
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
Dividend per share
2.50
2.00
1.50
1.00
0.50
0
2005 2006 2007
2005
2006 2007
ANNUAL REPORT 2007 ANNUAL REPORT 2007
9

Value Added Statement
Year ended June 30, 2007
10 ANNUAL REPORT 2007
2007 200
Rs’000 Rs’000
Sale of goods and services 1,404,40 1,355,677
Less: Paid to suppliers for materials and services (979,784) (928,348)
Value added 424, 21 427,329
Other operating income 2,192 43,904
Total wealth created 48 ,81 471,233
Distributed as follows:
Members of staff
Salaries and other benefits 214,427 207,838
Providers of capital
Dividends paid to ordinary shareholders ,1 8 33,138
Interest paid on borrowings 101,079 76,981
Dividends paid to minority shareholders 1,271 48
Lease costs 7 1,010
1 ,2 1 111,177
Government and parastatal corporations
Income tax (Current and deferred) 1 ,82 15,468
Environment protection fee , 00 6,770
Licences and permits 1, 2 1,739
2 ,98 23,977
Reinvested in the group to maintain and develop operations
Depreciation and amortisation 111,288 100,001
Retained profit 8 2 28,240
112,1 0 128,241
Total wealth distributed and retained 48 ,81 471,233
Chairman’s Report
Dear Shareholder,
On behalf of the Board of Directors,
I am pleased to submit to you the
Annual Report of The United Basalt
Products Ltd and of the Group for
the year ended June 30, 2007 and
to comment on the operations and
results.
Review of Activities
and Results
Revenue
The Group’s revenue for the year
increased by 3.6% over 2006 to reach
Rs 1.4 billion. This slight overall rise
was characterized by a significant
increase in our Espace Maison
activities which was almost fully
compensated by a downward trend
experienced in the market for our
core business products. The drop in
our core business activities was mainly
due to the slackening of the private
dwellings market resulting from the
indirect effects of the 2006-2007
national budget’s measures on the
construction industry as well as to the
absence of major public infrastructure
projects, the scarcity of iron bars on
the market and the fierce competition
that prevailed. This drop was to a
slight extent compensated by a better
sales mix in favour of higher margin
products. On the other hand, our
Espace Maison activities maintained
its upward trend, both in terms of
retail store sales and project sales,
namely for hotels and Integrated
Resorts Schemes (I.R.S.) projects. In
fact, unlike in 2006, our three Espace
Maison retail stores were in operation
for the full financial year.
Operating Profit
The Group’s operating profit for the
year went down from Rs 114.9 million
in 2006 to Rs 103.2 million this year
after having recognised a provision of
Rs 15 million against trade debtors.
The operating profit of the Company
moved from Rs 139.0 million in 2006
to Rs 120.7 million this year. Marbella
Espace Maison Ltée, although not
being profitable yet, showed a
significant improvement during the
year thereby reducing its operating
loss from Rs 29.2 million in 2006 to
Rs 17.2 million this year.
As regards foreign activities, our
subsidiary company in Madagascar
incurred a loss of Rs 10.7 million for
the year (2006 : Rs 0.2 million profit)
due to an unexpected delay in one
project and to production disruption
during April and May 2007 caused by
the transfer of our plant to Tamatave.
In Sri Lanka, our subsidiary company
incurred a loss of Rs 5.6 million for
the year (2006 : Rs 4.6 million) due
to poor market conditions resulting
from the political instability prevailing
there. Consequently, amounts
receivable from our subsidiary in
Sri Lanka appearing in the Company’s
balance sheet were impaired by
Rs 20 million to cover part of the
accumulated losses to date.
Our fully-owned subsidiary, Compagnie
de Gros Cailloux Ltée made a profit
after tax of Rs 8.9 million for the year
(2006 : Rs 12.4 million) after accounting
for the fair value of consumable
biological assets.
Our share of results from associate
companies remained stable at Rs 11.7
million.
The Group’s finance costs rose
substantially by Rs 24.1 million
during the year due to an increase in
interest rate and as a result of heavy
borrowings contracted over the past
three years.
Some quoted available-for-sale
investments were realised in June 2007,
thereby generating an exceptional
profit of Rs 11.3 million.
Consequently, the Group’s profit for
the year went down from Rs 60.5
million in 2006 to Rs 34.2 million
this year.
EPS and Dividend
Earnings per share dropped from
Rs 2.78 in 2006 to Rs 1.54 this year.
A dividend of Rs 1.50 per share
(2006 : Rs 1.50) was declared by the
Company on May 23, 2007 and paid
on June 29, 2007.
Financial Situation
Investments in property, plant and
equipment amounted to Rs 191.3
million for the year under review, out
of which Rs 42.3 million was financed
through leasing facilities. Besides
normal recurring expenditure for
the replacement and upgrading of
plant, machinery and equipment for
our core business operations, Rs 50.3
million was incurred for a complete
crushing plant, standing on a plot of
land of sixty-four acres at St Julien,
operating under the name of Pricom
Ltd until June 2007 and under UBP
thereafter. Another Rs 30.2 million
was incurred for the acquisition of
some eleven acres of land next to
our site at Geoffroy Road. The other
significant group cash outflows made
during the year were an additional
investment of Rs 20.5 million in our
subsidiary company in Sri Lanka to
finance the acquisition of extra quarry
ANNUAL REPORT 2007
11

Chairman’s Report (continued)
land and to increase our stake from
60% to 71%, the net refund of term
loans amounting to Rs 33.2 million
and a dividend payment of Rs 33.1
million in June 2007.
As a result of the above, the Group’s
financial situation was adversely
affected. The level of borrowings
was further increased during the year
under review, thereby confirming the
trend noted since 2004 as a result of
massive investments made to acquire
Compagnie de Gros Cailloux Ltée and
to finance the Espace Maison expansion
plan besides providing funds for our
operations in Madagascar and Sri
Lanka. Furthermore, a deterioration
of the ratio of cash sales to total sales
was noted during the year.
As mentioned already, some quoted
available-for-sale investment s
were disposed of during the year.
The remaining available-for-sale
investments were revalued at the
balance sheet date and gave rise to
a fair value reserve gain of Rs 51.5
million for the year under review. In
view of reducing the Group’s level of
indebtedness and to finance future
capital expenditure, the Board of
Directors intends to pursue the disposal
of a major part of the non-strategic
investments which comprise of the
remaining quoted available-for-sale
investments and the 25.5% stake in
Highway Properties Ltd, an associate
company which owns the Trianon
Shopping Park buildings.
On the assets side, the Group’s land
and buildings were revalued at June
30, 2007, giving rise to a revaluation
surplus of Rs 564.0 million, thereby
increasing the Group’s net assets
value (NAV) by Rs 25.53.
Developments
and Projects
Another development achieved
during the year for our core business
activities was the installation of a new
crusher on our plant at La Mecque at a
cost of Rs 15.4 million. Our subsidiary
company Sainte Marie Crushing Plant
Ltd at Bel Ombre spent Rs 2.3 million
to upgrade its crushing plant in view
of the on-going hotel and Integrated
Resort Schemes (I.R.S.) projects in the
region. On the foreign front, operating
leases were sought for the acquisition
of drilling equipments, lorries and
excavators needed for the extraction
of boulders on the quarries.
In July 2007, a strategic thinking
exercise was undertaken by the
management and the Board of
Directors to outline the main strategic
objectives for the development of the
Group over the next three years both
locally and overseas and to review, if
need be, the current business model
in the light of new market conditions
and opportunities. In line with this
exercise, and if the market justifies
it, the production of blocks on our
site at St Julien is being planned as
from early 2008. In addition, a new
sales point was set up on a rented
plot of land at Phoenix in an aim
to bring our products closer to the
market. Furthermore, two lorries were
acquired in October 2007 and fitted
with cranes to facilitate the delivery
and handling of blocks on sites
comprising of single-storey buildings
and houses. Last but not least, iron
bars will soon be imported and sold
on a trial basis from all our sites to
meet the needs of our customers.
The budget for the current financial
year 2007-2008 provides Rs 6.8
million for the acquisition of a
new crusher for our plant at Plaine
Magnien and Rs 4.4 million for a new
mixer for our subsidiary company,
Sainte Marie Crushing Plant Ltd,
thereby enhancing and improving
the capacity and efficiency of our core
business production units. In order
to remedy the increasing constraints
experienced on the availability of
boulders, the budget has made
provision for the replacement and
addition of appropriate equipments
for this purpose. Another major
exceptional capital expenditure to be
provided for during the financial year
2007-2008 and probably the next year,
is the transfer of our crushing plant
of La Mecque to our site at Geoffroy
Road, required since the land owners
have informed us of their intention to
use the site for property development
projects. This move will also imply
the transfer of our PPB concrete slab
factory to our recently acquired plot
of land of eleven acres next to our
site at Geoffroy Road. Given the good
performance achieved by our PPB
division this year and considering the
number of contracts in the pipe-line
for 2007-2008, the PPB factory will be
extended upon its transfer. The cost
of these major items of expenditure is
at the time of writing being worked out.
The acquisition of land next to our
site at Plaine Magnien which was
mentioned in our previous annual
reports, is still under consideration,
the aim being to enable future plant
expansion or potential industrial and
commercial projects.
As regards our Espace Maison
activities, the three retail stores were in
operation for the full financial year. The
floor amenities were further improved
with the installation of new racks
whilst our warehouse at Roche-Bois
was extended further. In aiming at
constantly improving the product
range and the service offered to our
customers, some new products were
introduced with a complete after-sales
service. Our purchasing department
is constantly sourcing new products
from Europe and Asia which offer the
best value-for-money ratings. A fidelity
card under the name of ‘V.I.B.’ - ‘Very
Important Bricoleur’, was launched
in July 2006. The response noted
was very positive as this card enables
the holder to benefit from discounts,
priority promotions and a whole range
of personalized privileges. As regards
future projects, the Board of Directors
is currently considering the setting up
of new Espace Maison retail stores in
other regions.
Concerning our fully-owned subsidiary
Compagnie de Gros Cailloux Ltée, the
nursery was extended further to satisfy
the supply to our Espace Jardin outlets
and to hotels and Integrated Resort
Schemes (I.R.S.) projects. Regarding
the two land parcelling projects
that were initiated, the agricultural
one has still not materialized whilst
the conversion permit for the
residential one has been obtained.
At the time of writing, the project is
at the shaping phase with the help
of consultants in view of deciding
between two options, namely the
sale of bare plots of land and the
construction of several residential
compounds, making maximum use
of our own building materials and
fittings and engaging several of our
clients involved in the contracting
business. This type of project is part
of our future development strategy
both at Gros Cailloux and elsewhere.
The master plan referred to in our
previous annual report was submitted
by the foreign consultant but is still
under consideration. However, we
have received and are objecting to a
notice served under section 6 of the
Land Acquisition Act to permit the
installation of an electrical network on
part of the estate to connect the coal
power plant currently being planned
by CT Power Ltd at Pointe-aux-Caves.
Should our objection fail, this project
will most certainly have a significant
negative impact on our current and
future development plans of the estate.
Concerning our new IT system, the
servers and communication network
were upgraded and backed by a
disaster recovery system whilst our
workshop service operations system
was launched in November 2007. The
computerization of our contracting
services is under way whilst that of
our core business production and
sales units is being planned for 2008.
Outlook
In the light of our results since July
2007 and assuming favourable
economic conditions and the timely
materialization of projects, it seems
that the performance of our core
business activities will be sustained
in the financial year 2007-2008
whilst that of Espace Maison is likely
to improve despite the arrival of
new competitors on the market.
The above-mentioned development
projects and new ventures should
impact our turnover and results
positively and contribute to finance
the major plant relocations which lie
ahead of us. On the foreign front, our
subsidiary in Madagascar is on the
way to a positive performance with
many contracts on hand in Tamatave
mainly. As regards our subsidiary in
Sri Lanka, the production capacity
has been increased but our future
results depend on the recovery of the
economy. Furthermore, as mentioned
above the Board intends to pursue
the disposal of major non-strategic
investments which, if crystallised
during the financial year 2007-2008,
should have a material impact on the
net results of the Group.
Appreciation
On behalf of the Board of Directors,
I wish to express my thanks and
appreciation to the Managing
Director and his management team
and personnel for their unrelenting
efforts during the year under review.
I wish to express my gratitude to my
colleagues of the Board of Directors for
their support and their contribution to
the affairs of the Group with special
thanks to Mr Jean Paul Adam who
will resign as Director as from after
the next Annual Meeting after having
served valuably the Company and the
Group since June 2001.
Thierry Lagesse
Chairman
November 19, 2007
12 ANNUAL REPORT 2007
ANNUAL REPORT 2007
1

Corporate
Governance Report
The United Basalt Products Ltd is a public company incorporated in
Mauritius since July 1953 and listed on the Stock Exchange of Mauritius. In
December 2004, the shareholders adopted a new Constitution in line with
the provisions of the Companies Act 2001.
Shareholding Structure
The detailed shareholding structure is as detailed on page 7 with The
United Basalt Products Ltd having no Ultimate Holding Company. Please
refer to page 21 - Other Statutory Disclosures for the names of common
Directors.
Shareholders
Shareholders holding more than 5% interest in the shares of the Company
at June 30, 2007 were as follows :
Shareholders Number % Amount
of shares Interest Rs
Compagnie d’Investissement
et de Développement Ltée 5,140,206 23.26 51,402,060
Forward Investment and
Development Enterprises Ltd 2,088,318 9.45 20,883,180
The Company’s shareholding analysis at June 30, 2007 was as follows :
Size of shareholding Number of Number of Percentage
shareholders shares owned (%)
1 – 500 622 123,223 0.56
501 – 1,000 208 161,438 0.73
1,001 – 5,000 535 1,327,489 6.01
5,001 – 10,000 157 1,139,275 5.16
10,001 – 50,000 170 3,531,884 15.99
50,001 – 100,000 28 1,906,956 8.63
100,001 – 250,000 16 2,614,170 11.83
250,001 – 500,000 5 1,932,774 8.75
Over 500,000 5 9,354,493 42.34
Total 1,74 22,091,702 100.00
ANNUAL REPORT 2007
1

Corporate Governance Report (continued)
Category of shareholders Number of Number of Percentage
shareholders shares owned (%)
Individuals 1,554 6,991,517 31.65
Insurance and assurance companies 15 1,708,993 7.74
Pension and provident funds 39 2,399,210 10.86
Investment and trust companies 38 8,008,853 36.25
Other corporate bodies 100 2,983,129 13.50
Total 1,74 22,091,702 100.00
Share Price Information
Please refer to Financial Highlights on page 8 and 9 for indicators and share price movements.
At time of writing the share of the Company is quoted at Rs 42.00 on the Stock Exchange with a Price Earnings Ratio
(PER) of 24.56, a Dividend Yield of 3.57% and a Price to Net Assets Value (NAV) of 0.61.
Dividend Policy
Dividends are paid once yearly in June subject to the solvency test. The dividend declared is based on the Company’s
performance, the capital expenditure and the debt servicing requirements, the investment needs and the market
conditions. In so doing, the Board of Directors attempts to distribute a yearly dividend which, under normal circumstances,
should remain sustainable in the medium to long term.
Important Events
Declaration of dividend : May
Payment of dividend : June
Financial year end : June
Annual Meeting of shareholders : December
Directors
The Company has a unitary Board composed of ten Directors with an adequate mix of executive, non-executive and
independent non-executive Directors. According to the Constitution, the Board shall consist of a minimum of seven
and a maximum of fifteen Directors. A quorum of five Directors is required for Board meetings.
The Directors’ and alternate Directors’ category, other directorships in listed companies and interests in the shares of
the Company were as follows :
Category Other June 30, 2007 June 0, 200
Directorships No. of ordinary shares No. of ordinary shares
Direct Indirect Direct Indirect
Thierry Lagesse - Chairman NICB 6 9 0 20,077 930 20,077
Jean Paul Adam C.B.E. NED - 4 ,002 , 47 51,002 53,082
François Boullé INED - - 9, 7 - -
Marc Freismuth INED 1 - - - -
Jean Giraud INED - ,07 - 5,075 -
Jean Michel Giraud ED - 2, 47 2,10 2,047 2,105
Joël Harel INED - - - - -
J. Cyril Lagesse NED 6 742 - 742 -
Alternate - Arnaud Lagesse NED 5 - 2 , - 23,655
Raymond Lagesse INED - 19, 07 2, 00 1,200 -
E. Jean Mamet INED 2 - 1, 00 - 1,500
ED – Executive Director
NED – Non-Executive Director
INED – Independent Non-Executive Director
NICB – Non-Independent Chairman of the Board
None of the Directors of the Company have a direct interest in the shares of the subsidiary companies.
The Directors ensure that they follow the principles of the model code on securities transactions by Directors as detailed
in Appendix 6 of the Mauritius Stock Exchange Listing Rules. Details of Directors’ dealings in shares of the Company
are as depicted on the table above.
Board Committees
Audit Committee
Chairman : E. Jean Mamet
Members : François Boullé
Joël Harel
The Audit Committee Charter was approved by the Board of Directors on May 20, 2005. The main duty of the
committee is to approve the financial statements before submission to the Board of Directors. The Audit Committee also
assists the Board of Directors in carrying out its responsibilities relating to internal control systems and procedures. The
committee also monitors the role and scope of work of internal and external auditors, including the identification of any
risk areas, and ensure compliance with legal and regulatory provisions and the articles of association. The committee
met nine times this year, mainly to review all published financial statements, to fix the terms of reference of the internal
auditor of Marbella Espace Maison Ltée, to review the reports of both internal and external auditors and to assess and
make recommendations to the Board on auditors’ remuneration.
1 ANNUAL REPORT 2007
ANNUAL REPORT 2007
17

Corporate Governance Report (continued)
The annual remuneration of the Chairman and of each member of the committee amounts to Rs 60,000 and Rs 40,000
respectively.
Corporate Governance Committee
Chairman : Thierry Lagesse
Members : Marc Freismuth
Joël Harel
Mr Joël Harel was appointed on July 1, 2006 in replacement of Mr Jean Raymond Harel.
The Corporate Governance Committee is also responsible for Nomination and Remuneration aspects of the Code.
Its main duties are to determine the policy on Corporate Governance in accordance with the principles of the Code
of Corporate Governance, to advise and make recommendations to the Board of Directors on all aspects of Corporate
Governance and to report thereon. The committee met once during this financial year.
The annual remuneration of the Chairman and of each member of the committee amounts to Rs 5,000.
Meetings Attendance Board Audit Committee Corporate Governance
Committee
Thierry Lagesse 10 out of 10 - 1 out of 1
Jean Paul Adam C.B.E. 9 out of 10 - -
François Boullé 9 out of 10 8 out of 9 -
Marc Freismuth 9 out of 10 - 0 out of 1
Jean Giraud 2 out of 10 - -
Jean Michel Giraud 10 out of 10 - -
Joël Harel* 8 out of 10 8 out of 9 1 out of 1
J. Cyril Lagesse 5 out of 10 - -
Raymond Lagesse 10 out of 10 - -
E. Jean Mamet 7 out of 10 9 out of 9 -
* Appointed as Director on July 1, 2006 in replacement of his father Mr Jean Raymond Harel.
Remuneration Philosophy Statement
The Corporate Governance Committee has been delegated to act as Nomination and Remuneration Committee.
As such it is responsible for making recommendations with regard to determining and developing the Company’s
general policy on executive and senior management remuneration, determining specific remuneration packages for
executive Directors of the Company and the level of remuneration of non-executive Directors taking into consideration
the market trend and the Group’s performance.
Please refer to page 22 – Other Statutory Disclosures for a table of total emoluments and benefits received by the
Directors from the Company and subsidiary companies.
Related Party Transactions
Please refer to note 29 on page 57 – Notes to the Financial Statements
Employee Share Option Plan
The Company does not have any Employee Share Option Plan.
Key Risks Identification and Management
The Directors are ultimately responsible for the adequacy and effectiveness of the internal control system to ensure that
the Company carries on its activities in an orderly manner and in minimisation of all potential risks. In so doing, a firm
of consultants was appointed to carry out a thorough study of the internal control system in place, and to report on
any weaknesses and recommendations thereon. Regular internal audit visits were effected and reported to the Audit
Committee, and ultimately to the Board of Directors. These visits were performed with the assistance of our internal
auditor, the objective being to ensure the effective and efficient use of available resources and ascertaining the accuracy
of information used in the preparation of financial statements.
Financial Risks
Please refer to note 3 on page 43 – Notes to the Financial Statements
Social, Ethical, Safety, Health and Environmental Policies and Practices
The policies and practices of the Company in terms of social aid translates mainly into financial assistance to various
school projects and sport federations besides sponsorships to children of employees for school and tertiary training
courses. Amongst these is the André Bazerque primary school at Camp-Levieux, being part of the ‘Zones d’Education
Prioritaire’ (ZEP), is being sponsored since three years now. Marbella Espace Maison Ltée, via its personnel, is also
embarking into a social aid program aimed at sponsoring various projects in the vicinity of each of our Espace Maison
retail stores. At Trianon, books and computers will be donated to the ‘Centre Municipal de Pellegrin’. At Tamarin, we
have supplied products for the renovation of the floor of the ‘Paille en Queue’ day nursery and are sponsoring an art
education program for ‘L’association La Pointe Tamarin’. We are also planning to assist in the renovation of the Village
Hall. At Cottage, Forbach, we are sponsoring the renovation of a primary school and are planning to organise an
initiation program to the Mauritian flora for the pupils of the school.
In terms of safety, health and environmental issues, our policy is to ensure that our production plants are equipped to
run in such a way to minimise causing damage to the environment and that the health and safety of our employees is
not at risk by insisting on the use of protective clothing and accessories and through regular health screen tests.
Donations
Please refer to page 23 – Other Statutory Disclosures for details of donations made during the year.
Christophe Quevauvilliers
Company Secretary
November 19, 2007
18 ANNUAL REPORT 2007
ANNUAL REPORT 2007
19

Other Statutory Disclosures June 30, 2007
(Pursuant to Section 221 of the Companies Act 2001)
Activities
The principal activity of the Group remains the manufacture and sale of building
materials which consist mainly of our core products: aggregates, rocksand and hollow
concrete blocks. Other products include precast concrete slabs, various concrete
building components including paving-blocks and roof tiles, imported floor and
wall tiles, sanitary ware and a complete range of home building products, fittings
and tools. Services rendered consist mainly of engineering works by the Company’s
workshop and contracting services.
As from July 2005, all the commercial activity under Espace Maison was transferred
to a separate legal entity, namely Marbella Espace Maison Ltée. For this purpose, the
name of our subsidiary company, Centre Commercial de Trianon Ltée was changed
accordingly before June 30, 2005.
Directors
Members of the Board of Directors at June 30, 2007 were:
THE COMPANy
Messrs: Thierry Lagesse - Chairman
Jean Paul Adam C.B.E.
François Boullé
Marc Freismuth
Jean Giraud
Jean Michel Giraud
Joël Harel – Appointed on July 1, 2006 in
replacement of his father Mr Jean Raymond Harel.
J. Cyril Lagesse - alternate : Arnaud Lagesse
Raymond Lagesse
E. Jean Mamet
SUBSIDIARy COMPANIES
Sainte Marie Crushing Plant Ltd
Messrs: Thierry Lagesse - Chairman
Jean Michel Giraud
Richard Koenig
Raymond Lagesse
Welcome Industries Ltd
Messrs: Thierry Lagesse - Chairman
Jacques Brousse de Laborde
Jean Michel Giraud
Marbella Espace Maison Ltée
(Formerly known as Centre Commercial
de Trianon Ltée)
Messrs: Jean Michel Giraud - Chairman
Jean Paul Adam C.B.E.
François Boullé
Marc Freismuth – Appointed on
November 27, 2006.
Jean Giraud
Joël Harel – Appointed on November 27, 2006 in
replacement of his father Mr Jean Raymond Harel.
J. Cyril Lagesse
Raymond Lagesse
Thierry Lagesse
E. Jean Mamet
Marbella Ltd
Messrs: Jean Michel Giraud - Chairman
François Boullé
Joël Harel – Appointed on November 1, 2006 in
replacement of his father Mr Jean Raymond Harel.
Land Reclamation Ltd
Messrs: Jean Michel Giraud - Chairman
François Boullé
Jean Giraud
Joël Harel – Appointed on November 1, 2006 in
replacement of his father Mr Jean Raymond Harel.
Louis Raoul Harel
In October 2007, Mr Jean Paul Adam
resigned as Director of the Company
effective as from after the next Annual
Meeting and Mr Jean Claude Maingard
was appointed on November 19, 2007
to replace him.
Stone & Bricks Co. Ltd
Messrs: Jean Michel Giraud - Chairman
Jean Giraud
Joël Harel – Appointed on November 1, 2006 in
replacement of his father Mr Jean Raymond Harel.
The Stone Masters Co. Ltd
Messrs: Jean Michel Giraud - Chairman
Jean Giraud
Joël Harel – Appointed on November 1, 2006 in
replacement of his father Mr Jean Raymond Harel.
UBP International Ltd
Messrs: Thierry Lagesse - Chairman
Jean Michel Giraud
Louis Raoul Harel
UBP Madagascar
Mr: Gino Guness - Manager
United Granite Products (Pvt.) Ltd
Messrs: Jean Michel Giraud - Chairman
Joseph Albert
Jacques Brousse de Laborde
A. Mahir Didi
Hussain Saad Hashim
Haresh Karunanayake
Eddy Mancienne
Mohamed Umar Maniku
Mr Haresh Karunanayake resigned in October 2006.
Compagnie de Gros Cailloux Ltée
Messrs: Thierry Lagesse - Chairman
François Boullé
Jacques Brousse de Laborde
Jean Michel Giraud
Joseph Vaudin
Pricom Ltd
Messrs: Thierry Lagesse - Chairman
Jean Michel Giraud
Joël Harel
20 ANNUAL REPORT 2007
ANNUAL REPORT 2007
21

Other Statutory Disclosures (continued) June 30, 2007
Directors’ Service Contracts
Except for Mr Jean Michel Giraud who has a contract of employment with the Company, there are no service contracts
between the Company and any of the Directors.
Directors’ Remuneration
Total remuneration and benefits received by the Directors from the Company and its subsidiary companies were
as follows:
2007 200
Executive Non- Executive Non-
Executive Executive
Rs’000 Rs’000 Rs’000 Rs’000
The Company 4, 78 1,1 4 4,018 566
Subsidiary Companies :
Sainte Marie Crushing Plant Ltd - 9 - 60
Welcome Industries Ltd - - - -
Marbella Espace Maison Ltée - - - -
Marbella Ltd - - - -
Land Reclamation Ltd - - - -
Stone & Bricks Co. Ltd - - - -
The Stone Masters Co. Ltd - - - -
UBP International Ltd - - - -
UBP Madagascar - - - -
United Granite Products (Pvt.) Ltd - - - -
Compagnie de Gros Cailloux Ltée - - - -
Pricom Ltd - - - -
Directors’ Share Interests
Please refer to page 17 – Corporate Governance Report
Statement of Directors’ Responsibilities
in respect of the preparation of financial statements and internal control.
The Directors are responsible for the proper maintenance of accounting records which disclose at any time, and with
reasonable accuracy, the financial position of the Group and the Company. They are also responsible for safeguarding
the assets of the Group and the Company and for taking reasonable steps to prevent and detect any fraud and other
irregularities.
The Directors are also responsible for the preparation and presentation of financial statements for each financial year,
and in so doing they are required to :
• select and apply consistently suitable accounting policies
• comply with the provisions of the Companies Act 2001 and the International Financial Reporting Standards (IFRS),
and to explain any departure therefrom
• use the going-concern basis wherever appropriate.
The Directors acknowledge that they have exercised their responsibilities as described above for the financial year under
review and report that nothing has been brought to their attention which could indicate any material breakdown in
the internal control systems and cause a material impact on the trading and financial position of the Group and the
Company.
Donations
The Company and its subsidiary companies have donated Rs 746,045 during the year ended June 30, 2007 (2006:
Rs 564,081).
Auditors
The auditors’ remuneration was as follows:
THE GROUP THE COMPANY
2007 200 2007 200
Rs’000 Rs’000 Rs’000 Rs’000
Audit fees 1,042 817 9 510
Non-audit fees 12 215 107 197
The auditors, Ernst & Young, have expressed their willingness to continue in office and a resolution for their reappointment
is being proposed at the Annual Meeting of shareholders.
On behalf of the Board
Thierry Lagesse Jean Michel Giraud
Chairman Managing Director
November 19, 2007
22 ANNUAL REPORT 2007
ANNUAL REPORT 2007
2