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A N N U A L
R E P O R T
VISION
To be a market leader in the design, sourcing and distribution of at least one of our products in eight
countries south of the Sahara for all our products by 2020.
CORE VALUES
Integrity
Being absolutely truthful and accepting responsibility for our actions.
Quality
Being professional and quality oriented in everything we do.
Teamwork
Working together to achieve a common goal.
Dependability
Our customers, employees and suppliers must be able to count on us.
Fun
Embracing a positive attitude and spontaineity.
Zimplow Limited
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Contents
Notice to Shareholders
Chairmans Review
Corporate Governance
Financial Highlights
10
11
12
13
14
54
55
Shareholders Analysis
56
57
Financial Calendar
Zimplow Limited
P Devenish
Z Kumwenda*
A Kurauone
B Mitchell*
D Mkonto*
E Mlambo
T Moyo
N Nhira
Z L Rusike (Chairman)
F Rwakonda* (Appointed 22 August 2011)
* Executive
D Mkonto
GROUP SECRETARY:
TRANSFER SECRETARIES:
AUDIT COMMITTEE:
A Kurauone (Chairman)
T Moyo
N Nhira
REMUNERATION COMMITTEE:
Z L Rusike (Chairman)
P Devenish
E Mlambo
EXECUTIVE COMMITTEE:
Z Kumwenda
B Mitchell
D Mkonto
F Rwakonda
REGISTERED OFFICE:
AUDITORS:
BANKERS:
Zimplow Limited
Notice to Shareholders
SIXTH SECOND ANNUAL GENERAL MEETING
Notice is hereby given that the Sixth second Annual General Meeting of shareholders will be held at the CT Bolts Division
Office, Falcon Street and Wanderer Road, Bulawayo on 28 March 2012 at 10:00 hours to transact the following business:
AGENDA
Ordinary Business
1. To approve the minutes of the Annual General Meeting held on 30 March 2011.
2. To receive and adopt the directors report and audited financial statements for the year ended 31 December 2011.
3. To elect directors Mr F. Rwakonda, who retire from office in accordance with the Groups Articles of Association ,
and Mr Z Kumwenda and Mrs D Mkonto who retire from office by rotation.
All being available, they offer themselves for re-election.
4. To approve the payment of final dividend number 68 of 0.27 United States cents per share proposed on 22 February
2012.
5. To approve the remuneration of directors for the year ended 31 December 2011.
6. To fix the auditors remuneration for the year ended 31 December 2011.
7. To appoint auditors for the financial year ending 31 December 2012.
BY ORDER OF THE BOARD
D MKONTO
Company Secretary
39 Steelworks Road
P.O. Box 1059
BULAWAYO
22 February 2012
A member entitled to attend and vote is entitled to appoint one or more proxies to act in the alternative and to attend and
vote and speak in his stead. Such proxy need not be a member of the Group. Proxy forms must be lodged at the registered
office of the Group not less than forty-eight hours before the time of the meeting.
Zimplow Limited
Chairmans Review
INTRODUCTION
increase. The effective tax rate for the year under review
the situation.
OPERATIONS
cember 2011 increased by 27% to 74 thousand implements, as compared with 59 thousand implements for the
PROSPECTS
regional competitiveness.
ACKNOWLEDGEMENTS
My appreciation goes to fellow Board members for the
Z L Rusike
Chairman
22 February 2012
FINANCIAL REVIEW
Group Revenue for the 12 months ended December 31,
2011 increased by 26% to US15.5 million as compared
to US$12, 3 million for the same period in 2010. This
increase was due to improved local market as well as
additional revenue from the new acquisition. Domestic
revenue increased by 30% while foreign revenue improved
by 17%.
Zimplow Limited
2 730 282
(686 851)
4 171 468
6 214 899
2 342 001
(700 000)
1 829 467
4 171 468
DIVIDEND
A final dividend number 68 of 0.27 United States cents (2010-0.21 United States cents) per share was proposed on 22
February 2012.
SHARE CAPITAL
The unissued ordinary shares of 163 722 372 have been placed under the control of the directors, in terms of
Extraordinary General Meetings of Members held on 30 August 1989, 10 November 2004, 16 November
2005 and 14 November 2007.
PROPERTY, PLANT AND EQUIPMENT
Capital expenditure for the year ended 31 December 2011 totalled US$ 510 762. Capital
commitments for the year to 31 December 2012 amount to US$ 326 560.
DIRECTORATE
The names of the directors and secretary are those in office at the time of the printing of this
Notice (22 February 2012).
AUDITORS
Messrs Ernst & Young remain in office until the conclusion of the Annual General Meeting on 28 March
2012, at which members will be asked to fix their remuneration for the year under review and to appoint the
auditors for the ensuing year. Messrs Ernst & Young have indicated their willingness to continue in office.
For and on behalf of the Board
Chairman
Z. Rusike
Zimplow Limited
Corporate Governance
BOARD OF DIRECTORS
The board of directors consists of a non-executive chairman, four executive directors and six non-executive directors. The
chairman of the various committees are all non-executive directors. The board meets regularly to review results, dictate
policy, formulate overall strategy and approve the budgets. They have introduced structures of corporate governance,
certain functions and responsibilities have been delegated to the following committees. Their terms of reference and
composition are regularly reviewed.
AUDIT COMMITTEE
The audit committee liaises with the Groups external auditors. The external auditors have unrestricted access to the
audit committee. The annual, half yearly statements and financial reporting matters are reviewed by the committee at
appropriate intervals.
REMUNERATION COMMITTEE
This committee sets the remuneration of the executive directors and approves guidelines for the Groups pay reviews.
EXECUTIVE COMMITTEE
The executive committee sits between board meetings to deliberate and consider detailed operational issues of the Group
which includes strategy implementation.
Zimplow Limited
Financial Highlights
Year Ended
31 December 2011
US$
Year Ended
31 December 2010
US$
15 503 306
12 298 300
3 635 273
2 922 253
2 730 282
2 342 001
Total assets
16 745 397
13 493 652
Market capitalisation
26 902 210
21 913 886
Basic earnings
0.01
0.01
0.01
0.01
Turnover
Zimplow Limited
Zimplow Limited
Zimplow Limited
Year Ended
31 Dec 2011
US$
Year Ended
31 Dec 2010
US$
TURNOVER
15 503 306
12 298 300
Domestic
11 235 468
8 635 365
Export
4 267 838
3 662 935
Cost of sales
(8 737 971)
(6 801 772)
Gross profit
6 765 335
5 496 528
(3 300 806)
(2 720 466)
3 464 529
2 776 062
Finance income
249 237
161 049
Finance costs
(78 493)
(14 858)
3 635 273
2 922 253
(904 991)
(580 252)
Operating profit
6.1
2 730 282
2 342 001
(29 752)
124
(135 147)
comprehensive income.
6.1
Other comprehensive (loss)/income for the year, net of tax
4 546
(160 353)
(19)
105
2 569 929
2 342 106
Profit attributable to:
Owners of the parent
2 677 328
2 342 001
Non-controlling interests
52 954
-
2 730 282
2 342 001
Total comprehensive income attributable to:
Owners of the parent
2 583 057
2 342 106
Non-controlling interests
(13 128)
-
2 569 929
2 342 106
Earnings per share ($)
Basic
22
0.01
0.01
Diluted
22
0.01
0.01
Zimplow Limited
10
31 Dec 2011
US$
5.1
7 621 223
7 068 881
7 066 581
18.1
(65 400)
76 496
(69 065)
101 702
-
101 597
-
Retained earnings
6 161 945
4 171 468
1 829 467
13 725 199
512 633
14 237 832
11 342 051
-
11 342 051
8 997 645
-
8 997 645
6.3
621 484
599 833
618 860
12.1
12.2
1 171 111
378 982
804 488
378 421
980 708
140 627
335 988
368 859
232 912
1 886 081
1 551 768
1 354 247
16 745 397
13 493 652
10 970 752
2 863 605
2 667 362
2 668 756
147 976
41 625
3 053 206
177 728
-
2 845 090
177 604
-
2 846 360
ASSETS
Non Current Assets
Property, plant and equipment
Current Assets
Inventories
10
7 057 950
5 372 463
5 829 151
11
2 686 329
2 242 511
1 163 878
91 412
13
3 947 912
3 033 588
1 039 951
13 692 191
10 648 562
8 124 392
TOTAL ASSETS
16 745 397
13 493 652
10 970 752
Chairman
Z L Rusike
22 February 2012
Zimplow Limited
11
Zimplow Limited
12
7 066 581
1 829 467
(392 486)
2 221 953
-
76 496
2 677 328
(686 851)
(69 065)
-
-
2 342 001
105
-
101 702
4 171 468
101 597
(25 206)
101 597
* Being deemed cost adjustment to Tassburg assets that were identified on the consolidation of the fixed asset register.
552 333
Adjustment*
2 300
Payment of dividend
Profit for the year
Other comprehensive income for the year
Balance at 31 December 2010
32 707 7 036 174
Payment of dividend
Profit for the year
Other comprehensive income for the year
7 066 581
(69 065)
(25 206)
552 342
(65 400)
2 677 328
(686 851)
-
-
(65 400)
-
-
-
2 300
-
-
- 2 342 001
-
105
- 11 342 051
- 8 997 645
-
-
-
- 7 066 581
US$
Total
(392 486)
2 221 953
101 597
(135 147)
(25 206)
525 761
552 342
(65 400)
2 730 282
(686 851)
(66 082)
525 761
52 954
2 300
2 342 001
105
11 342 051
8 997 645
7 066 581
Share
Capital
Share Available for Foreign Currency
Retained Share Based Attributable
Non
Capital
Reserve Premium sale reserve
Translation
earnings
Payment to owners of Controlling
Reserve
Reserve the Parent
Interest
US$
US$
US$
US$
US$
US$
US$
US$
US$
Year Ended
31 Dec 2011
US$
Year Ended
31 Dec 2010
US$
3 464 529
2 776 062
302 328
271 230
(65 400)
(15 917)
(40 594)
3 685 540
3 006 698
(Increase)/decrease in inventories
(1 026 982)
(171 043)
(1 094 022)
101 632
168 372
2 589 147
2 537 737
249 237
161 049
(78 493)
(14 858)
Taxation paid
(910 078)
(463 349)
1 849 813
2 220 579
(510 762)
(282 984)
38 207
56 042
20.6
355 919
(116 636)
(226 942)
(686 851)
1 046 326
1 993 637
3 033 588
(132 002)
1 039 951
-
3 947 912
3 033 588
0.01
0.01
456 689
Zimplow Limited
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1. Corporate information
The financial statements for the reporting period ended 31 December 2011 were authorised for issue in accordance
with a resolution of the Groups Directors on 22 February 2011.
Zimplow Limited, the Groups parent entity, is a Zimbabwe based concern. The Group operates three divisions and one
Subsidiary as follows:
Mealie Brand: engaged in the manufacture and distribution of animal drawn agricultural implements, hoes and
metal fasteners. Products include ploughs, cultivators, harrows, ridgers, ground nut shellers and planters. The Mealie
Brand factory is situated in Bulawayo;
CT Bolts: engaged in the manufacture and distribution of metal fasteners for the mining, construction and
agricultural industries. Products include industrial screws, mild steel bolts, sockets and anchoring products, nails,
nuts, washers, lags, chrome bolt covers and fittings. The CT Bolts factory is situated in Bulawayo with an operating
branch located in Harare;
Tassburg: engaged in the manufacture and distribution of wood screws, veranda bolts and high tensile bolts for the
household furniture, construction and mining industries. The Tassburg factory is situated in Harare.
African Traction and Associated technologies Afritrac: engaged in the distribution of animal drawn agricultural
implements and tools is situated in South Afica.
2. Basis of preparation
The financial statements have been prepared on the historical cost basis except for property, plant, equipment and
financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for assets.
The Group has achieved explicit and unreserved compliance with IFRS after early adoption of the revised IFRS 1 Firsttime Adoption of International Financial Reporting Standards issued on 20 December 2010. The Group failed to express
a statement of explicit and unreserved compliance with IFRS for the financial year ended 31 December 2009 due to the
effects of severe hyperinflation as defined in IFRS 1 (Revised).
On 20 December 2010, the IASB amended IFRS 1 in order to:
- provide relief for first-time adoptors of IFRS from having to reconstruct transactions that occurred before their date
of transition to IFRS; and
- provide guidance for entities emerging from severe hyperinflation to either resume presenting IFRS financial
statements or topresent IFRS financial statements for the first time.
IFRS 1 (Revised) is applicable for periods beginning on or after 1 July 2011, early adoption is permitted. The Group has
elected to early adopt the amendments to IFRS 1. The effect of the application of the amendments to IFRS 1 is to render
the opening statement of financial position, prepared on 1 January 2009 (date of transition to IFRS) IFRS compliant.
The opening statement of financial position was reported in the prior year as not being compliant with IFRS due to the
inability to comply with International Accounting Standard IAS 21 The Effects of Changes in Foreign Exchange Rates and
IAS 29; Financial Reporting in hyperinflationary Economies.
The Groups previous functional currency, the Zimbabwe dollar (ZW$), was subjected to severe hyperinflation before the
date of transition to IFRS because it had both of the following characteristics:
(a) a reliable general price index was not available to all entities with transactions and balances in the ZW$; and
(b) exchangeability between the ZW$ and a relatively stable foreign currency did not exist.
Zimplow Limited
14
The following new and revised IFRSs have also been adopted in these financial statements.The
application of these new and revised IFRSs has not had any material impact on the amounts reported
for the current and prior years but may affect the accounting for future transactions or arrangements.
Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards - Additional Exemptions for
Firsttime Adopters (as part of improvements to IFRS issued in 2009): The amendments provide two exemptions when
adopting IFRS forthe first time relating to oil and gas assets, and the determination as to whether the arrangement
contains a lease. Not applicable.
Amendments to IAS 1 Presentation of Financial Statements (as part of Improvements to IFRSs issued in 2010)
The amendments to IAS 1 clarify that an entity may choose to disclose an analysis of other comprehensive income by item
in the statement of changes in equity or in the notes to the financial statements. In the current year, for each component
of equity, the Group has chosen to present such an analysis in the statement of changes in Equity.
Zimplow Limited
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3. Operating Profit
Year Ended
Year Ended
31 Dec 2011
31 Dec 2010
US$
US$
Profit for the year is atttributable to:
Owners of the parent
2 677 328
2 342 001
Non controlling interests
52 954
-
2 730 282
2 342 001
The operating profit before taxation is arrived at
After charging;
Administration expenses
2,498,749
1 874 733
85,435
68 165
29,516
29 516
272 812
241 714
302,328
271 230
40,658
45 094
Other emoluments
294 555
200 400
335 213
245 494
Selling expenses
694,921
512 689
Discount to customers
71,723
203 257
14,681
12 925
275
3,361,767
2 697 176
64,117
11 261
52,831
3,478 715
86 716
2 795 153
Directors emoluments
Fees
-
15,917
Zimplow Limited
34
8 167
40 594
4. Segment information
The Farming implements segment is a manufacturer and distributor of animal drawn implements for the agricultural
sector; The Fastenors segment is a manufacturer and distributor of metal fasteners,wood screws,veranda bolts and high
tensile bolts to the mining, construction, agricultural sectors and house hold furniture industry. Information reported to
the Groups Chief operating decision maker for the purpose of resource allocation and assessment of segment performance
is more specifically focused on the type of product produced.
The following is an analysis of the Groups revenue and results from operations by reportable segments for the year ended
31 December 2011.
Revenue
F
arming Implements
Fasteners
Adjustment
Total
External customers
Inter segment
12 507 843
675 038
2,995,463
325,114
(1,000,152)
15 503 306
-
Total revenue
13,182,881
3,320,577
(1,000,152)
15 503 306
3 206 804
274 097
(16 372)
3 464 529
Finance income
249,237
Finance costs
(78,493)
Income taxes
(904 991)
2 730 282
Results
Reportable segment profit
Unallocated items:
Segment profit represents the profit earned by each segment without allocation of the central administration costs
and directors salaries. This is the measure reported to the chief operating decision maker for the purpose of resource
allocation and assessment of segment performance.
Zimplow Limited
35
Revenue
F
arming Implements
Fasteners
Adjustment
Total
2 523 839
12,298,300
33,228
(33,228)
9,774,461
2,557,067
(33,228)
12,298,300
2,643,070
151,642
(18,650)
2,776,062
Finance income
161,049
Finance costs
(14,858)
Income taxes
(580,252)
2,342,001
Year Ended
31 Dec 2011
US$
Year Ended
31 Dec 2010
US$
External customers
9,774,461
Inter segment
Total revenue
Results
Reportable segment profit
Unallocated items:
14 249 081
11 282 200
Fasteners
2,645,381
2 347 068
Other (Eliminations)
(149 065)
(135 616)
16 745 397
13 493 652
1 504 108
1 225 191
527 492
433,376
Other (Eliminations)
(145 519)
(106 799)
1 886 081
1 551 768
Zimplow Limited
36
70,904
302,328
59 156
271 230
Fasteners
Additions to non current assets
Year Ended 31/12/2011
Year Ended 31/12/2010
US$
Farming Implements
US$
419,694
91,068
45 467
510,762
Fasteners
237 517
282 984
Transfer prices between operating segments are set on an arms length basis in a manner similar to transactions with third
parties. Internal transactions are appropriately eliminated on consolidation and data aggregation.
Geographic information
Revenue from external customers (based on customer location)
US$
US$
Local
11,235,468
8 635 365
4,267,838
3 662 935
15,503,306
12 298 300
Foreign
Total
The Groups operations are located in Zimbabwe( the entitys country of domicile) and South Africa.
The Groups disclosed segment information, is limited to financial position data as at 31 December 2011, and financial
performance data for the twelve month period to 31 December 2011.
Zimplow Limited
37
5. Share Capital
5.1 Reconciliation of authorised and Issued share capital
Year Ended 2011
Year Ended 2010 Year Ended 2009
Shares
Shares
9 205 704
28 861 499
336,277,628
US$
US$
US$
32 716
32 707
Capital reserves
7 036 174
7 036 174
7 066 581
Share premium
552 333
7 621 223
7 068 881
7 066 581
Authorised
Increase in ordinary shares
Shares
5.2 Subject to Section 183 of the Companies Act (Chapter 24:03), and to the limitations of the Zimbabwe Stock Exchange,
the unissued shares are under the control of the Directors, in terms of Extraordinary General Meetings of Members held on
30 August 1989, 10 November 2004, 16 November 2005 and 14 November 2007.
5.3 Share options granted under the Companys employee share option plan
At 31 December 2011, executives and senior employees held options over 16 350 000 ordinary shares of the Company, of
which 40% will expire in 2016, another 40% in 2017 and 20% will expire in 2018.
Share options granted under the Companys employee share option plan carry no rights to dividends and no voting rights.
Further details of the employee share option plan are provided in note 17.
5.4 At 31 December 2011, the directors of the Group held directly and indirectly, the following shares:
Name
Z. Kumwenda
14 530
15 609
D. Mkonto
1 213
1 213
B. Mitchell
63 501 000
63 500 000
1 084 980
1 203 464
N. Nhira
P. Devenish
1 213
1 213
A. Kurauone
1 000
-
E. Mlambo
1 000
-
T. Moyo
1 000
-
Z. Rusike
1 000
-
F. Rwakonda
1 000
-
Zimplow Limited
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6. Taxation
31 Dec 2011
31 Dec 2010
US$
US$
811,253
582 097
40 983
Deferred taxation
26 196
(19 045)
Withholding tax
26,559
17 200
904 991
580 252
(4,546)
(4,546)
19
19
902 996
602 010
11,420
(1 497)
(63,338)
(33 626)
(13,629)
(3 816)
40 983
26,559
904 991
17 200
580 271
The tax rate used for the 2011 reconciliation is 25.75% in comparison to 20.6% in 2010 as the entity did not manage to
export a greater number of implements due to high local demand and competition in the export market.
6.3. Deferred tax liability
Key components of deferred tax:
31 Dec 2011
31 Dec 2010
31 Dec 2009
568 079
567 465
590 395
Prepayments
23,416
16 429
13 030
Deferred Income
(4,648)
(5 386)
(845)
4,454
17 795
17 929
13,342
16 841
3 530
-
(1 649)
-
621 484
599 833
618 860
Zimplow Limited
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Land &
Plant &
Motor Office furniture
Buildings
Machinery
vehicles
& computer
-freehold
equipment
US$
US$
US$
US$
At cost/valuation
At 1 January 2009
Total
US$
630 000
1 760 185
444 829
65 143
2 900 157
Additions
2 511
19 425
268 584
52 552
343 072
Disposals
(84 811)
(84 811)
632 511
1 779 610
628 602
117 695
3 158 418
2 300
2 300
Additions
(30)
11 984
213 869
57 161
282 984
Disposals
(51 706)
(15)
(51 721)
632 481
1 793 894
790 765
174 840
3 391 981
Additions
2 595
22 753
421 239
64 175
510 762
2 213
7 491
1 142
10 846
(262)
(886)
(135)
(1 283)
(123 841)
(1 737)
(125 578)
637 027
1 816 647
1 094 768
238 285
3 786 728
(7 369)
(53 213)
(233 048)
(26 345)
(319 975)
(29 475)
(96 465)
(84 665)
(13 747)
(224 352)
At 31 December 2009
Adjustment*
At 31 December 2010
combination
Effects of foreign currency exchange
Disposals
At 31 December 2011
Accumulated depreciation
At 1 January 2009
Charge for the year
Disposals
59 100
59 100
At 31 December 2009
(36 844)
(154 113)
(258 613)
(40 092)
(489 662)
(29 516)
(98 099)
(121 275)
(22 340)
(271 230)
36 267
36 273
At 31 December 2010
(66 360)
(252 212)
(343 621)
(62 426)
(724 619
(27 631)
(100 516)
(142 040)
(32 141)
(302 328)
121
365
51
536
102 700
588
103 288
At 31 December 2011
(93 870)
(352 728)
(382 596)
(93 928)
(923 123)
Carrying amount
At 31 December 2009
595 667
1 625 497
369 989
77 603
2 668 756
At 31 December 2010
566 121
1 541 682
447 144
112 414
2 667 362
At 31 December 2011
543 158
1 463 919
712 172
144 357
2 863 605
Disposals
(4 435)
(4 435)
*Being deemed cost adjustment to Tassburgs assets that were identified on the consolidation of the fixed assets register
Zimplow Limited
40
Authorised but not yet contracted
US$
326 560
US$
808 499
52 200
326 560
860 699
Capital commitments are expected to be financed through the utilisation of funds generated by the Groups operating
activities.
Year Ended
Year Ended
Year Ended
Opening balance
2011
US$
177 728
2010
US$
177 604
(29,752)
124
119 526
Closing balance
147,976
177 728
177 604
2009
US$
58 078
The fair value of the Groups investments in listed equity shares at 31 December 2011 is determined by reference to
published price quotations in an active market.
9. Goodwill
US$
US$
US$
47 200
47 200
US$
US$
US$
47 200
(5 575)
41 625
Cost
Accumulated impairment losses
Cost
Balance at beginning of year
Additional amounts recognised from business
Zimplow Limited
41
10. Inventories
Raw materials
Finished goods
1 611 287
1 368 212
1 814 104
2,785,062
2 308 453
1 276 992
7,057,950
5 372 463
5 829 151
The cost of inventory recognised as an expense during the year was US$ 8,737,971 . ( Prior year 31 December 2010 was
US$ 6 801 772.). The amount of write down of inventories recognised as an expense is US$12 001 which is recognised in
cost of sales.
Year Ended
2010
US$
1 282 027
Year Ended
2009
US$
398 528
751 622
688 410
539 796
(14,681)
(12 925)
589,798
284 999
225 554
Trade receivables
- Local trade receivables
2 686 329
2 242 511
1 163 878
Ageing of receivables that are past due but not impaired
30- 60 days
532,732
401 586
203 021
61 - 90 days
37,684
62 420
91- 120 days
-
8 242
-
Over 120 days
1,050
45 336
731
Total
571,466
517 584
203 752
Movement in the allowance for doubtful debts
Balance at beginning of the year
Impairment losses recognised on receivables
Amounts recovered during the year
Balance at end of the year
Zimplow Limited
42
306,404
415 852
548 414
509 890
177 958
319 579
1 171 111
804 488
980 708
Local trade payables
The average credit period on local purchases of key manufacturing inputs ranges between 7 30 days (from date of
invoice).
Foreign trade payables
The average credit period on foreign purchases of key manufacturing inputs is 30 days (from date of invoice). The Group
has financial risk management policies in place to ensure that trade payables are paid within the credit time frame.
12.2 Provisions employee benefits
Year Ended 2011
Year Ended 2010 Year Ended 2009
Balance at 1 January 2011
US$
378,421
US$
140 627
US$
-
65,121
311 566
140 627
(64,560)
(73 772)
378,982
378 421
140 627
The provision for employee benefits represents annual leave, long service leave entitlements accrued and compensation
claims made by the Groups employees. The effect of the time value of money in settling the above employee benefit
obligations is considered immaterial.
540,557
62 432
114 103
3,947,912
3 033 588
1 039 951
925 848
Short term deposits are made for varying periods of between one day and three months, depending on the immediate and
short term cash requirements of the Group, and earn interest at the respective short term deposit.
Zimplow Limited
43
Year Ended
2011
US$
75 686
77 640
6 857
Year Ended
2010
US$
56 210
59 268
-
Zimplow Limited
44
160 183
115 478
The non cancellable nature of the Groups leases would ordinarily necessitate disclosures in accordance with IAS 17: 35
(Leases). In this regard, future minimum lease payment commitments over prescribed periods would need to be disclosed
in accordance with the particulars of lease arrangements. Given the contingent rental payment terms in place throughout
most of the current reporting period and in place as at period end, the aforementioned disclosures are not considered
relevant and accordingly do not form part of the note.
The Groups contingent rental payment terms, introduced in January 2010, are based on a percentage of the monthly
turnover of CT Bolts. Payments are remitted monthly, in arrears, to the former owner of the business unit. Set payment
terms are not leveraged or indexed to any external sources and are considered to relate only to the Zimbabwean economic
environment.
Application Guidance to IAS 39: Financial Instruments: Recognition and Measurement states that operating lease
payments based on turnover is a common contingent rental term within leases that is categorised as an embedded
derivative. Such embedded derivatives are however considered closely related to the host lease contract and accordingly,
do not have to be separated from the lease contract as a whole. The Group, as lessee, therefore continues to expense such
contingent payments as they arise.
Zimplow Limited
45
The carrying amount of the Groups foreign currency denominated monetary assets and liabilities as at the reporting
period end date, are as follows:
Year Ended 2011
Year Ended 2010
Assets
S African Rand Botswana Pula S Africa Rand Botswana Pula
Trade and other receivables
69 1 162
57,441
540 707
15 404
530 660
9,897
62 148
283
1 221 822
67,338
602 855
15 687
306 404
117 572
915 418
67,338
485 283
15 687
Total assets
Liabilities
The table below details the Groups sensitivity to the strengthening of the US$ against the South African Rand and
the Botswana Pula by 10%, with all other variables held constant. The analysis was applied to monetary items at the
reporting period end date, as denominated in respective currencies.
Zimplow Limited
46
Zimplow Limited
47
Zimplow Limited
48
2011
Number of Options
-
6 540 000
6 540 000
2010
Number of Options
-
Zimplow Limited
49
Zimplow Limited
50
Year Ended
2011
US$
-
Year Ended
2010
US$
-
525 761
52 954
(66 082)
512 633
Year Ended
2009
US$
-
-
-
-
-
-
-
-
US$
-
552,342
552,342
The Group issued 9 205 704 ordinary shares as consideration for the 49% interest in Afritrac. The fair value of the
shares is the published price of the shares of the Group at the acquisition date, which was 0.06 US cents each. The
fair value of the consideration given is therefore US$552 342.
A
cquisition-related costs amounting to US$11 500 have been excluded from the consideration transferred and have
been recognised as an expense in the current year, within the other expenses line item in the consolidated statement
of comprehensive income.
20.3 Assets acquired and liabilities recognised at the date of acquisition
Current assets
Cash and & cash equivalents
Trade and other receivables
Inventories
US$
355,919
272,775
658,505
Non-current assets
Plant and equipment
10,845
Current liabilities
Trade and other payables
(265 552)
Tax payable
(1 588)
Net assets
1 030 904
Zimplow Limited
51
US$
552,342
525,761
(1,030,904)
US$
-
355 919
355 919
Zimplow Limited
52
Year Ended
31 December 2011
2 730 282
Year Ended
31 December 2010
2 342 001
0.01
0.01
0.01
0.01
The Group did not have any dilutive shares during the year.
The following potential ordinary shares are anti dilutive and are therefore excluded from the weighted number of ordinary
shares for the purposes of diluted earnings per share.
The Group had share options of 16 350 000 , that could potentially become dilutive. How ever the average market price for
the year of US$0.08 was less than the issue price of the share options of US$0.09
Zimplow Limited
53
Year Ended
Year Ended
31 December 2011 December 2010
31
US$
US$
15,503,306
12 298 300
(7 654 362)
(6 309 664)
7 848 944
5 988 636
APPLIED AS FOLLOWS:
Employee remuneration/benefits
3,414,598
44
2 795 153
46
Government taxes
900 445
11
580 271
10
686,851
2 847 049
36
2 613 212
44
Depreciation
302 328
271 230
(25,206)
(124)
Retained income
2 569 927
2 342 106
7 848 944
5 988 636
Zimplow Limited
54
100
100
Shareholders Analysis
for the year ended 31 December 2011
SIZE OF SHAREHOLDING:
1 5 000
No of Shareholders
668
%
60.95
%
0,28
5 001 10 000
90
8.21
673,002
0.20
10 001 25 000
1132
10.22
1,769,846
0.53
25 001 50 000
48
4.38
1,725,121
0.51
38
3.47
2,699,371
0.80
90
8.21
18,955,290
5.64
25
2.28
18,096,871
5.38
25
2.28
291,424,468
86.66
1,096
100.00
100.00
TYPE OF SHAREHOLDERS:
Nominees Local
81
7.39
150,966,862
44.89
50
4.56
4,795,282
1.42
Local Companies
135
12.32
93,147,039
27.7
Banks
25
2.26
16 584 298
7.79
724
66.06
14,019,398
4.17
Nominees Foreign
10
0.91
10,847,093
3.23
Pension Funds
45
4.11
28,090,741
8.35
25
2.28
16,603,959
4.94
Non Residents
18
1.27
12 781 481
0.78
1 5,008,016
1
4.46
Insurance Companies
11
0.09
1,253,107
0.37
Government/Quasi-Government
0.09
1,430,724
0.43
Fund Managers
10
0.91
97,150
0.03
Deceased Estates
0.27
18,257
0.01
1 096 100.00
336,277,628
100.00
106,669,555
31.72
CTB Investments
63,500,000
18.88
29,242,030
8.70
20,943,406
6.23
14,052,196
4.18
10,980,770
3.27
8,738,394
2.60
6,942,378
2.06
6,880,067
2.05
4,402,491
1.31
272,351,287
Zimplow Limited
55
80.99
Year Ended
31 Dec 2010
US$
15,503,306
12 298 300
3 635 273
2 922 253
Taxation
(904 991)
(580 252)
2 730 282
2 342 001
24%
24%
13 692 191
10 648 562
Current liabilities
1 886 081
1 551 768
11 806 110
9 096 794
16 745 397
13 493 652
Total equity
13 725 199
11 342 051
0.01
0.01
0.0027
0.0021
0.01
0.01
0.04
0.04
336,277,628
0.11
0.07
0.06
0.02
0.08
0.067
503
457
Summary of Results
Turnover
highest (01/11/2011)
lowest (12/01/2011)
- end of year
Staff Complement
Average number of employees
Zimplow Limited
56
Financial Calendar
Result and dividend announcement for the year ended 31 December 2011 23 February 2012
Annual General Meeting 28 March 2012
Dividend notice
In line with the Groups dividend policy, a final dividend number 68 of 0.27 United States cents per share (2010 0.21 United States cents per share), was proposed by directors on 22nd of February 2012.
The dividend will be payable out of the profits of the Group for the year ended 31 December 2011.
Payment will be on or about 14 March 2012 to ordinary shareholders registered in the books of the Group at the
close of business on Thursday 08 March 2012.
The share register will be closed from 9 to 11 March 2012, both days inclusive and will reopen on Monday 12
March 2012.
Zimplow Limited
57