Page 234 - Capricorn IAR 2020
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GLOSSARY OF TERMS ANNUAL FINANCIAL GLOSSARY OF TERMS STATEMENTS
NOTES TO THE CONSOLIDATED AND SEPARATE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 30 June 2020
21. INTEREST IN JOINT ARRANGEMENTS
Joint venture
The joint venture was incorporated in Namibia. The country of incorporation or registration is also its principal place of business.
The results of the joint venture is equity accounted. Management accounts as at 30 June 2020, have been used for equity accounting the share of results for the year-ended 30 June 2020. The value of the Group’s share in assets, liabilities, income and expenditure
is not significant to the Group as a whole.
The joint venture listed below has share capital consisting solely of ordinary shares, which are held directly by the Group.
The Group obtained a 25% interest in Namclear (Pty) Ltd during 2005. According to the joint venture agreement, a unanimous vote from all four shareholders is required to effect a resolution. Namclear (Pty) Ltd has a December year-end.
On 31 January 2020, Namclear (Pty) Ltd’s incorporation as a non-profit association under section 21 of the Companies Act of Namibia was completed. On this date the share capital and share premium contributed was redeemed. The shareholders of the company resolved that a final dividend to the value of the investment would be declared.
Number of shares held ’000
and premium 2020
2019 N$’000
1,154
Issued ordinary share capital
Effective holding
Shares at cost
N$’000
%
2020 N$’000
Namclear (Pty) Ltd
–
–
–
–
Group
2020 N$’000
11,016
2,817
(13,833)
–
–
–
23,481
23,481
54,967
53,415
(72,949)
(30,817)
4,616
–
–
Opening balance
The Group's share of the profit in the joint venture Dividend declaration
Closing balance Non-current Directors’ valuation
Technique used for directors’ valuation:
2019 N$’000
7,341 3,675 –
11,016 11,016 11,016
14,700 14,700
52,656
49,983 (40,709) (17,866)
44,064
11,016 11,016
Namclear (Pty) Ltd is a private company and there is no quoted market price available for its shares. The directors’ valuation for 2019 was determined by using its net asset values, which is level 3 of the fair value hierarchy.
Aggregated summarised financial information of Namclear (Pty) Ltd
Profit after tax
Total comprehensive income
Non-current assets Current assets Non-current liabilities Current liabilities
Net asset value
Interest in joint arrangement (0%) (2019: 25%)
Carrying value of joint arrangement
Refer to note 40 for related party transactions and balances with joint ventures.
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