mu-rht-2017-ar-00

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 9. INVESTMENT IN SECURITIES (a) THE GROUP Quoted 2017 Total 2016 Rs Unquoted Rs Total Available-for-sale investments At 1 July Rs Rs Additions during the year Disposals during the year 358,317,820 1,027,970 359,345,790 343,319,683 Increase / (decrease) in fair value 6,873,770 13,309,583 20,183,353 86,771,070 At 30 June (25,111,516) (60,611,221) (25,111,516) - 90,279,797 (10,133,742) 71,279,797 19,000,000 444,697,424 359,345,790 411,359,871 33,337,553 Available-for-sale investments comprise principally of quoted and unquoted equity securities. The fair value of listed available-for-sale securities and held for trading securities are based on the Stock Exchange and DEM quoted prices at the close of business at end of reporting date. Unquoted AFS investments have been measured at fair value. Unquoted investments fall into two categories: investment in shares not quoted on any stock exchange in Mauritius and investment in funds with exposures in Exchange Traded Funds for which quotes are provided by brokers as a proxy to fair value. In assessing the fair value of unquoted shares, management uses the dividend yield method by obtaining observable data from the financial statements of the investments and analysing historical and forecast dividend yield. An expectation is then made of the next year dividend yield, which is compared to dividend yields of similar companies which are listed on the Stock Exchange of Mauritius for reasonableness and this dividend yield is then used to estimate the fair value of the securities. In assessing the fair value of unquoted Exchange Traded Funds, management uses quotes as provided by brokers. The unadjusted Net Asset Value method of valuation is used as provided by brokers and makes assumptions that are based on market conditions existing at each reporting date. The directors are of the opinion that the Net Asset Values are not materially different from their fair values. The cost of these investments is as follows: Quoted Shares 2017 2016 Unquoted Shares Rs Rs 261,144,780 279,383,075 14,337,553 1,027,970 275,482,333 280,411,045 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation The investments in securities have been pledged to secure banking facilities of the Group. Details of Companies, which are all incorporated in Mauritius, other than subsidiaries and associates in which the Group holds more than a 10% interest are as follows: Name of Company Description 2017 and 2016 One advertising Ordinary shares 12.82% The investment in securities was already fully impaired in prior years. 10. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 2017 2016 Rs Rs Investments held for trading - Quoted 99,781,900 102,641,000 At 1 July - (21,700) Disposals during the year Gain / (loss) on fair value 28,846,900 (2,837,400) At 30 June 128,628,800 99,781,900 Further information is provided in Note 31. 100

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 11. INVENTORIES THE GROUP 2017 2016 Rs Rs Spare parts, at cost 4,075,283 2,676,615 Tyres, tubes and fuel, at cost 1,196,207 858,323 Stationery, tickets and rolls, at cost 188,468 Information technology equipment, at cost 275,852 2,067,987 1,134,862 Provision on stock losses and obsolescence 7,615,329 4,858,268 (2,623,817) (75,802) 4,991,512 4,782,466 The cost of inventories recognised as an expense includes an amount of Rs 2,623,817 (2016: Rs 75,802) in respect of provision on stock losses and obsolescence for the year ended 30 June 2017. The inventories have been pledged to secure banking facilities for the Group. 12. TRADE AND OTHER RECEIVABLES THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Trade receivables 15,659,357 12,501,203 - - Less: Provision for bad debts (2,317,470) (975,762) - - 13,341,887 - - Dividends receivable 7,852,548 11,525,441 9,397,290 7,189,183 Other receivables and prepayments 20,833,689 7,965,560 78,937 69,936 Amount due from fellow subsidiaries 376,039 123,123 - 12,441,861 - 42,028,124 31,932,862 9,852,266 7,382,242 The directors have assessed the carrying value of trade receivables and are of opinion that they are fairly stated in the financial statements. The Group has provided fully for all receivables where recovery is expected to be remote. Dividends receivable are recognised when the right to receive payment is established. The dividends have been received after the reporting date. The amount due from related parties is unsecured, interest free and with no fixed repayments terms. No allowance for doubtful debts has been RHT Holding Ltd | Annual Report 2017 | Leadership through innovation provided on the basis that these debtors are related entities within the Group and they are expected to be in good financial health once they progress out of their start up phase into the growth stage, with the support of the Group. The average credit period on trade and other receivables for sale of goods is two months. Before accepting any new customer, the Group assesses the potential customer’s credit quality and define credit limits by customer. The attributes of the customers are reviewed on a yearly basis. There is no interest charged on trade receivables for sale of goods. In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. There is no concentration of credit risk at Group level. Trade receivables disclosed above include amounts (see below for aged analysis) that are past due at the end of the reporting period for which the Group has not recognised an allowance for debts because there has not been a significant change in credit quality and the amounts are still considered recoverable. Age of receivables is as follows: THE GROUP 0-60 days 2017 2016 61-90 days 91-120 days Rs Rs More than 120 days 4,421,121 4,839,206 Amount not past due nor impaired is Rs4,421,121 (2016: Rs4,839,206). 411,911 Amount past due but not impaired is Rs8,920,766 (2016: Rs6,686,235). 982,086 1,027,186 7,526,769 959,210 101 13,341,887 4,699,839 11,525,441

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 12. TRADE AND OTHER RECEIVABLES (CONT’D) Movement in the allowance for doubtful debts THE GROUP 2017 2016 Rs Rs At 1 July 975,762 1,119,987 Bad debts written off - (567,053) Impairment losses recognised on trade receivables 422,828 At 30 June 1,341,708 975,762 2,317,470 No bad debt was written off during the year (2016: Rs 567,053). The additional provision of Rs 1,341,708 (2016: Rs422,828) pertains to the trade receivables due more than 120 days. The credit quality of the other receivables has been assessed by management who is satisfied as to their recoverability and no additional provision is required for the current year. 13. STATED CAPITAL THE GROUP AND THE COMPANY 2017 2016 2017 2016 Rs Number of shares Rs Issued and fully paid ordinary shares 12,162,150 12,162,150 24,324,300 24,324,300 Ordinary shares issued The ordinary shares are entitled to dividend and one share carry one voting right. 14. BORROWINGS THE GROUP 2017 2016 Rs Rs Repayable by instalments: 9,809,812 6,278,404 - Within one year 77,221,142 31,700,054 - Between one and five years 12,038,285 12,495,631 - Over five years 89,259,427 44,195,685 99,069,239 50,474,089 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation The floating interest rate charged by the bank on secured loan repayable by monthly instalments is based on the Prime Lending Rate (“PLR”) prevailing in Mauritius, plus Fixed Margins which vary between 1% to 2% (2016: 1% to 2.25%) per annum. The rates ranged be- tween a minimum of 6.65%, being the PLR in 2016, to PLR + 2.25%, that is 8.9%. During the year 2017, the PLR decreased to 6.25%. The loans are secured by the assets of the Group. 15. DEFERRED TAX AND TAXATION (a) Deferred taxes Deferred tax is calculated on all temporary differences under the liability method at 17% (2016: 15%). The following amounts are shown in the Statement of Financial Position: THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Deferred tax assets (183,033) (183,033) (183,033) (183,033) 335,231 273,225 - - 102 Deferred tax liabilities 152,198 90,192 (183,033) (183,033)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 15. DEFERRED TAX AND TAXATION (CONT’D) (a) Deferred taxes (Cont’d) The movement on the deferred tax account is as follows: THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs At 1 July 90,192 109,595 (183,033) (216,129) Recognised in profit or loss Current year liability (note 15(b)) 62,006 1,972 - (34,141) Overprovision in previous years - (59,795) - 28,817 Recognised in other comprehensive income 62,006 (57,823) - (5,324) Deferred tax on retirement benefit obligations At 30 June - 38,420 - 38,420 152,198 90,192 (183,033) (183,033) Deferred tax liabilities and deferred tax assets charge in the statement of profit or loss and other comprehensive income are attributable to the following items: THE GROUP 2016 Recognised Recognised 2017 Rs in in other Rs profit or loss comprehensive 373,603 income 80,681 Rs Rs (168,471) (133,615) Deferred taxes 311,597 62,006 - RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Accelerated capital allowances 80,681 - - - Revaluation of land and building (302,086) Retirement benefit obligations (168,471) - - 152,198 Provision for bad debts (133,615) - - Tax losses - - - - - Net deferred tax assets (302,086) 62,006 - 90,192 2015 Recognised in Recognised 2016 Rs profit or loss in other Rs Rs comprehensive 311,597 income 80,681 Rs (168,471) (133,615) Deferred taxes 360,628 (49,031) - Accelerated capital allowances 80,681 - - - Revaluation of land and building (302,086) Retirement benefit obligations (148,650) (58,241) 38,420 Provision for bad debts (135,931) 2,316 - 90,192 Tax losses - (47,133) 47,133 103 Net deferred tax assets (331,714) (8,792) 38,420 109,595 (57,823) 38,420

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 15. DEFERRED TAX AND TAXATION (CONT’D) (a) Deferred taxes (Cont’d) Tax losses not accounted for 2017 2016 Rs Rs 63,736,274 64,504,300 Deferred tax assets are recognised for net tax losses only to the extent that the related tax benefit is probable. The Group has net tax losses relating to its subsidiaries to carry forward against future taxable income which have not been recognised due to the unpredictability of future profit streams. THE COMPANY 2016 Recognised in Recognised 2017 Rs profit or loss in other Rs Rs comprehensive (14,562) income (168,471) Rs - (168,471) Deferred taxes (14,562) - - (183,033) Accelerated capital allowances (168,471) - - Retirement benefit obligations - - Tax losses - - - (168,471) Net deferred tax assets - - (183,033) 2015 Recognised in Recognised 2016 Rs profit or loss in other Rs Rs comprehensive (14,562) income (168,471) Rs - (168,471) RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Deferred taxes (20,346) 5,784 - (183,033) Accelerated capital allowances (148,650) (58,241) 38,420 Retirement benefit obligations 47,133 Tax losses (47,133) (11,108) - (195,783) 38,420 Net deferred tax assets (5,324) (216,219) 38,420 (b) Taxation THE GROUP AND THE COMPANY The Group is taxable at the rate of 17% (2016: 15%) on companies incorporated in Mauritius, at 30% (2016: 30%) on its Indian operations as adjusted for tax purposes and at 35% (2016: nil) on its Zambian operations as adjusted for tax purposes. The Company is taxable at 17% on the profit for the year as adjusted for income tax purposes. The Group has accumulated tax losses of Rs 63,736,274 (2016: Rs 64,504,300); and the Company Rs 365,050 (2016: Rs 365,050) to offset against future taxable income. The time limit for using such tax losses is 5 years. Tax losses amounting to Rs 54,826,857 can be carried forward indefinitely as these arise on capital allowances on buses which the Group has availed to on its bus operating subsidiary. 104

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 15. DEFERRED TAX AND TAXATION (CONT’D) Tax losses Expiry date Rs (b) Taxation (Cont’d) Indefinite The expiry dates for the tax losses are as follows: 9,356,951 Indefinite 27,717,222 Indefinite 30 June 2009 14,220,434 30 June 2018 30 June 2010 30 June 2019 30 June 2012 715,124 30 June 2020 30 June 2013 680,942 Indefinite 30 June 2014 1,631,824 30 June 2021 30 June 2015 3,532,250 30 June 2015 5,881,527 30 June 2016 63,736,274 Tax liability THE GROUP At 1 July Overprovision in last year taxation 2017 2016 Refund during the year Rs Rs Net tax liability brought forward Current year tax liability 1,775,180 2,223,524 Less: - (26,834) Tax paid Advance Payment System 1,775,180 2,196,690 At 30 June - - Analysed as follows: Tax asset (Note 12) 1,775,180 2,196,690 Tax liability 569,586 1,082,834 Tax paid in excess is included under other receivables in Note 12. (442,916) (1,169,304) - (335,040) Major components of tax expense: 1,901,850 1,775,180 Tax expense Current tax expenses - - RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Over provision in last year taxation 1,901,850 1,775,180 1,901,850 1,775,180 Deferred tax Deferred tax expense (Note 15(a)) THE GROUP THE COMPANY Overprovision in previous years 2017 2016 2017 2016 Tax expense/(income) Rs Rs Rs Rs 569,586 1,082,834 1,462 - - (26,834) - - - 569,586 1,056,000 1,462 (34,141) 62,006 1,972 - 28,817 - (59,795) - (57,823) - (5,324) 105 62,006 998,177 1,462 631,592 (5,324)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 15. DEFERRED TAX AND TAXATION (CONT’D) (b) Taxation (Cont’d) Numerical reconciliation between tax expenses and the product of accounting profit multiplied by the applicable tax rate THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Profit before tax 37,812,737 15,188,818 2,958,249 15,727,558 Tax at the applicable tax rate 17% Less: Tax effect of:- 6,428,165 2,278,323 502,902 2,359,134 Expenses not deductible in determining taxable profits Tax loss utilised 1,635,729 6,754,516 2,702,381 2,025,755 Deferred tax movement not recognised (924,073) (620,386) - - Exempt income 1,429,940 960,006 - - Corporate social responsibility (8,003,571) Tax rate differentials (8,331,561) (3,244,701) (4,440,473) Over provision in taxation for prior year 18,387 12,344 - - Over provision in deferred taxation for prior year 47,015 31,564 (26,834) 17,483 21,533 Tax expense/ (income) - (59,795) - - - (5,796,573) (1,280,146) 23,397 28,817 (501,440) (2,364,368) 631,592 998,177 1,462 (5,234) 16. RETIREMENT BENEFIT OBLIGATIONS The Group and the Company have an unfunded plan which relates to employees who are entitled to retirement gratuities under the Employment Rights Act 2008. The liability under the unfunded plan is typically impacted by changes in discount rate and salary growth. The valuation of the unfunded retirement benefit obligations for the year ended 30 June 2017 is based on figures reported in the report from actuaries Aon Hewitt Ltd (Actuarial Valuer) dated 08 September 2017 and applying accounting estimates as determined by the directors. Movement in liability recognised in the statement of financial position: THE GROUP THE COMPANY 2017 2016 2017 2016 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Rs Rs Rs Rs At 1 July 44,433,571 40,033,000 991,000 991,000 Amount recognised in Profit or Loss 4,404,429 5,896,571 (183,000) 226,000 Amount recognised in Other Comprehensive Income 3,244,000 651,000 (221,000) (226,000) Benefits paid (6,158,000) (2,147,000) - - At 30 June 45,924,000 44,433,571 587,000 991,000 The details of the component of the unfunded retirement benefit obligation as per the actuarial report is detailed below for the year ended 30 June 2017. THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Liability recognised in the statement of financial position 45,924,000 44,433,571 587,000 991,000 106

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 16. RETIREMENT BENEFIT OBLIGATIONS (CONT’D) Amount recognised in the statement of profit or loss: THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Current service cost 3,127,429 3,168,571 97,000 157,000 Past service cost (1,621,000) - (349,000) - Net interest on net defined benefit 2,898,000 2,728,000 69,000 69,000 Included in staff costs 4,404,429 5,896,571 (183,000) 226,000 Components of amounts recognised in Other Comprehensive Income: THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Liability experience loss/(gain) 3,413,000 651,000 (219,000) (226,000) Liability gain due to change in financial assumptions (169,000) - (2,000) - 3,244,000 651,000 (221,000) (226,000) Reconciliation of the present value: THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Present value of obligation at 1 July 44,433,571 40,033,000 991,000 991,000 Current service cost 3,127,429 3,168,571 97,000 157,000 Interest expense 2,898,000 2,728,000 69,000 Past service cost (1,621,000) - 69,000 Other benefits paid (6,158,000) (2,147,000) (349,000) - Liability experience loss/(gain) 3,413,000 651,000 - - Liability gain due to change in financial assumptions (169,000) - (219,000) (226,000) Present value of obligation at 30 June (2,000) - 45,924,000 44,433,571 587,000 991,000 The principal assumption used for the purpose of computing the present value of the unfunded retirement benefit obligations: - RHT Holding Ltd | Annual Report 2017 | Leadership through innovation THE GROUP AND THE COMPANY 2017 2016 %% Annual discount rate 6.5 7.0 Future annual salary increase 4.0 4.5 Age Age Average retirement age (ARA) 65 65 Sensitivity Analysis on Defined Benefit Obligation at end of period Rs Rs - Increase due to 1% decrease in discount rate - RHT Holding Ltd 65,000 108,000 - RHT Bus Services Ltd 5,800,000 5,474,000 - Decrease due to 1% decrease in discount rate - RHT Holding Ltd 56,000 93,000 - RHT Bus Services Ltd 4,883,000 4,631,000 107 The above sensitivity analysis has been carried out by recalculating the present value of obligation at end of period after increasing or decreasing the discount rate while leaving all other assumptions unchanged. Any similar variation in the other assumptions would have shown smaller variations in the defined benefit obligation.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 16. RETIREMENT BENEFIT OBLIGATIONS (CONT’D) Future cash flows - The funding policy is to pay benefits out of the reporting entity’s cashflow as and when due. - Expected contributions from employer Group Rs 810,000 (Company Rs - Nil). - Weighted average duration of the defined benefit obligation: - RHT Holding Ltd 15 Years - RHT Bus Services Ltd 13 Years THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs State pension plan 3,612,696 3,284,613 31,000 32,062 National Pension Scheme Contributions expenses National Pension Scheme Contribution expenses are included in staff cost. 17. OBLIGATIONS UNDER FINANCE LEASES THE GROUP 2017 2016 Rs Rs Minimum lease payments: 3,153,299 4,013,530 Not later than 1 year 1,003,433 4,168,636 Later than 1 year and not later than 5 years 4,156,732 8,182,166 (193,277) Less: Future finance charges on finance leases 3,963,455 (629,375) Present value of finance lease liabilities 7,552,791 Present value of minimum lease payments: Not later than 1 year 2,971,876 3,588,396 Later than 1 year and not later than 5 years 991,579 3,964,395 3,963,455 7,552,791 Finance leases relate to buses, motor vehicles and computer equipment with lease terms between 3 to 5 years. The Group has options RHT Holding Ltd | Annual Report 2017 | Leadership through innovation to purchase the assets for a nominal amount at the conclusion of the lease agreements. Leased liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default. The fair value of the finance lease liabilities is approximately equal to their carrying amount. The fixed interest rate prevailing on the obligation under finance lease during the year was between the range of 7% to 10.5%. (2016: 7.0% to 10.5%) 108

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 18. TRADE AND OTHER PAYABLES THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Trade payables 16,669,485 6,285,902 6,562,143 - Other payables and accruals 13,417,131 14,797,770 1,437,264 7,023,583 Amount due to related companies (Note 32) 42,446,843 29,008,574 - - 30,086,616 21,083,672 50,446,250 36,032,157 The average credit period on purchases is two months. The Group and the Company have financial risk management policies in place to ensure that all payables are paid within the credit timeframe. Included in other payables and accruals is Rs 2m payable as deferred consideration for acquisition of an investment property, Rs 3.9m accrued for end of year statutory bonus, Rs 1.4m as VAT payable to the Mauritius Revenue Authority, Rs 1.2m payable to the National Pension Scheme, Rs 3m accrued for administrative and operating expenses and Rs 0.5m as downpayment from customers for services n ot yet re nderred. The amount due to related companies are unsecured, and carries interest at the rate of 7% (2016: 7%) per annum and repayable on demand. 19. DIVIDEND THE GROUP AND THE COMPANY 2017 2016 Rs Rs Interim dividend paid 6,689,183 6,081,074 Interim ordinary dividend of Rs 0.55 (2016: Rs 0.50) per ordinary share 7,297,290 6,689,183 Dividend declared 13,986,473 12,770,257 Final ordinary dividend of Rs 0.60 (2016: Rs 0.55) per ordinary share On 30 June 2017, the Board of Directors declared a final dividend of Rs 0.60 per ordinary share (2016: Rs 0.55). On 01 November 2016, an interim dividend of Rs 0.55 per ordinary share (2016: Rs 0.50) was declared and paid. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 109

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 20. SEGMENTAL REPORTING Information regarding the Group’s reportable segments is presented below. Products and services from which reportable segments derive their revenues. Segment information reported externally are analysed on the basis of the business segments provided by the Group’s operating divisions (i.e. Bus operating services, investing activities, rental of offices and trading activities). Information reported to the Group’s chief operating decision maker is more specifically focused on these business segments. Geographical information The Group operates in three principal geographical areas – Mauritius (country of domicile), India for its subsidiary RHT System India (PVT) Ltd and Zambia for its subsidiary ICL Zambia Ltd. The Group’s revenue from continuing operations from external customers and information about its segment assets by geographical location are detailed below: THE GROUP 2017 2016 Rs Rs GEOGRAPHICAL 254,548,857 241,494,380 Geographical revenue: - - Mauritius - India 682,601 Zambia 241,494,380 Total revenue including other income and investment income from within the Group 255,231,458 Geographical results: 39,714,825 15,188,818 Mauritius - - India - Zambia (1,902,088) Profit before tax 15,188,818 37,812,737 Segment assets RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Mauritius 934,072,512 786,940,786 India - - Zambia - 733,766 Segment liabilities 934,806,278 786,940,786 Mauritius India 213,366,712 179,409,741 Zambia 798,101 798,101 - - 214,164,813 180,207,842 110

20. SEGMENTAL INFORMATION (CONT’D) NOTES TO THE FINANCIAL STATEMENTS Segment revenue and results FOR THE YEAR ENDED 30 JUNE 2017 The following is an analysis of the Group’s revenue and results by reportable segments:111 Bus operating services Investing activities Rental of offices Trading and service fee Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Segmental Revenue 222,209,704 219,943,509 19,626,456 30,008,770 2,899,500 2,899,500 41,127,508 26,281,184 285,863,168 279,132,963 Segment revenue from other operating segments (3,755,699) (19,626,456) (30,008,770) (2,899,500) (2,899,500) (8,105,754) (974,614) (30,631,710) (37,638,583) within Group 222,209,704 216,187,810 - - - - 33,021,754 25,306,570 255,231,458 241,494,380 Segment revenue from -- 35,362,959 35,651,569 - - - - 35,362,959 35,651,569 external customers - - 28,846,900 (2,837,400) - - - - 28,846,900 2,837,400 Investment income 12,216,322 2,952,501 499,238 418,586 12,133 - 294,818 812,454 13,022,511 4,183,541 Gain/(Loss) on financial asset at FVTPL -- -- (585,201) - - - (585,201) - Other income 12,286,487 9,593,523 58,708,599 22,081,200 (10,621,843) (5,923,784) (12,816,212) (3,032,843) 47,557,031 22,718,096 (5,326,104) (5,970,968) (3,043,364) (1,473,284) (9,744,294) (7,529,278) Loss on revaluation of (590,423) (56,641) (784,403) (28,385) 37,812,737 15,188,818 investment properties 37,812,737 15,188,818 Segment results - Profit / (loss) from Operations Finance costs Profit from operations Profit before taxation The accounting policies of the reportable segments are the same as the group’s accounting policies described in note 2. Segment profit represents the profit earned by each segment without allocation of unallocated costs, share of results of associates and finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation

RHT Holding Ltd | Annual Report 2017 | Leadership through innovation NOTES TO THE FINANCIAL STATEMENTS 20. SEGMENTAL INFORMATION (CONT’D) FOR THE YEAR ENDED 30 JUNE 2017 Segment assets and liabilities112 Bus operating services Investing activities Rental of offices Trading and service fees Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Segment assets 112,176,664 111,558,653 584,069,568 473,948,119 173,266,902 127,040,066 23,155,486 4,301,553 892,668,620 716,848,391 Associates -- -- -- - - -- Unallocated corporate assets 15,460,064 11,200,520 9,307,715 7,367,970 2,767,322 248,468 6,514,970 2,266,714 42,137,658 70,092,395 934,806,278 786,940,786 Segment liabilities 34,050,071 21,083,672 Unallocated corporate liabilities 51,159,685 52,897,934 Borrowings 128,619,826 105,953,011 Deferred tax liabilities 335,231 273,225 214,164,813 180,207,842 Additions to: 31,337,817 2,024,024 -- - 118,021 11,148,539 2,162,629 42,486,356 4,304,674 117,381 - -- Property, Plant and - - 266,000 511,551 383,381 511,551 Equipment Intangible assets 16,786,644 16,632,542 - 5,513 384,969 580,135 2,806,085 1,255,105 19,977,698 18,473,295 Depreciation and 223,298 206,997 -- - - 570,500 474,066 793,798 681,063 amortisation: Property, Plant and Equipment Intangible assets Segment assets consist primarily of property, plant and equipment, investment properties, investment in securities, inventories, receivables and share of investment in associates and exclude intangible assets, cash and cash equivalents and deferred taxation. Segment liabilities comprise operating liabilities and exclude items such as taxation, deferred taxation, retirement benefit obligations, borrowing and dividend payable. Capital expenditure comprises additions to property, plant and equipment, investment properties and intangible assets. Information about major customers There is no single customer who generates more than 10% of the revenues of the Group and the Company.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 21. OTHER INCOME THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Interest on savings accounts 202,922 341,036 - 672 Bus advertising 865,946 1,544,874 - - Insurance claims 886,352 1,122,655 - - Profit on disposal of property, plant and equipment 5,277,519 - - Other income 5,789,772 - - - Interest from intercompany balances 1,174,976 8,600 - 8,055 - 13,022,511 4,183,541 8,600 8,727 Included in other income is an amount of Rs5,318,394 (2016: nil) representing a gain upon sale and leaseback transaction with Finlease Company Ltd for 10 buses under operating lease. 22. OPERATING EXPENSES THE GROUP 2017 2016 Rs Rs Drivers’ and conductors’ wages and salaries 129,411,480 105,877,317 Cost of tyres, tubes and fuel 47,698,175 43,169,748 Cost of spare parts 14,583,906 13,263,815 Cost of stationery, ticket and rolls 202,542 203,890 WIFI expenses 1,458,401 2,735,009 Insurance 5,001,746 5,674,516 Depreciation of buses 14,542,535 14,322,321 Depreciation of leased equipment 1,947,147 2,222,099 Provision for stock losses and obsolescence 2,548,015 75,802 Other operating expenses 13,437,601 11,608,167 230,831,548 199,152,684 23. ADMINISTRATIVE EXPENSES THE GROUP THE COMPANY RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 2017 2016 2017 2016 Rs Rs Rs Rs Staffs’ wages and salaries 26,476,716 30,456,621 8,212,440 8,008,836 Motor vehicle running expenses 1,194,140 1,362,112 17,179 - Advertising 6,463,598 1,866,049 Utilities and rentals 6,012,688 457,266 206,711 314,512 Repairs and maintenance 2,239,506 1,687,261 239,510 461,748 General expenses 4,429,064 4,169,003 Depreciation 3,488,016 3,702,050 15,180 24,009 Amortisation 591,263 681,063 3,513,563 129,465 Training expenses 552,820 2,715,480 Loss realised on disposal of asset classified as held for trading - 659 - 5,513 Loss on disposal of property, plant and equipment - 2,958,041 - - Allowance for doubtful debt 1,341,708 422,828 496,631 Other sundry expenses 700,530 6,142,877 - 184,691 - - - - 385,570 - 2,768,645 53,490,049 56,621,310 13,086,784 11,897,419 113

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 24. FINANCE COSTS THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Interest paid on: 5,716,382 3,903,587 - - 3,569,325 2,910,148 - - Bank loans - - Bank overdrafts 458,587 715,543 3,050,040 1,843,191 Lease - - Loan from group companies 3,050,040 1,843,191 9,744,294 7,529,278 25. EARNINGS PER SHARE THE GROUP 2017 2016 Rs Rs Basic and diluted earnings per share 37,181,145 14,190,641 Profit for the year attributable to owners of the Company 12,162,150 12,162,150 Equity shares in issue Basic and diluted earnings per share 3.06 1.17 As the Company has not issued any class of share, option or otherwise which have dilution potential, the basic and diluted earnings per share is therefore the same. 26. NET ASSET VALUE PER SHARE THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Net asset value per share 720,641,465 606,732,944 432,292,946 443,101,632 Equity attributable to holders of the Company 12,162,150 12,162,150 12,162,150 12,162,150 Equity shares in issue 59.25 49.89 35.54 36.43 Net asset per share 27. CASH AND CASH EQUIVALENTS THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Cash at bank and in hand 38,033,499 52,470,490 3,965,583 2,624,631 Bank overdraft (25,587,132) (47,926,132) - - 12,446,367 4,544,358 3,965,583 2,624,631 114

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 28. COMMITMENTS Capital commitments Capital commitment for the acquisition of new motor vehicles, computer equipment, electronic equipment, furniture and fittings and new bus depot which have been approved by the Board but not yet contracted for is as disclosed below: THE GROUP 2017 2016 Rs Rs - Property, plant and equipment 147,768,980 36,341,000 29. ACTIVITIES AND INCORPORATION RHT Holding Ltd is a public Company, incorporated in the Republic of Mauritius and listed on the Development & Enterprise Market (“DEM”) of the Stock Exchange of Mauritius Ltd. Its registered office is situated at 32 (ex.14) Hugnin Street, Rose Hill, Republic of Mauritius. The activity of the Company is an investment holding Company. The activities of the subsidiaries are disclosed in Note 7 of the financial statements. 30. FINANCIAL INSTRUMENTS Capital risk management The Group manages its capital to ensure that entities in the group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Group’s overall strategy remains unchanged from 2014. The capital structure of the Group consists of net debt, which includes borrowings, offset by cash at bank as disclosed in note 27 and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings. Gearing ratio The gearing ratio at the year end was as follows: THE GROUP 2017 2016 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Rs Rs Debt (i) 128,619,826 105,953,011 Cash at bank (38,033,499) (52,470,490) Net debt Equity (ii) 90,586,327 53,482,521 Net debt to equity ratio 720,641,465 606,732,944 0.13 0.09 (i) Debt is defined as long and short term borrowings as detailed in note 14, 17 and 27. (ii) Equity includes all capital and reserves of the Group. (iii) Management believes the gearing ratio is within an acceptable range. Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements. 115

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 30. FINANCIAL INSTRUMENTS (CONT’D) Categories of financial instruments THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Financial assets 38,033,499 52,470,490 3,965,583 2,624,631 (i) Loans and Receivables 26,153,769 28,299,619 9,773,329 7,312,306 Cash at bank and in hand 64,187,268 80,770,109 13,738,912 9,936,937 Trade and other receivables 128,628,800 99,781,900 - - (ii) Financial assets at fair value through profit or loss Held for Trading (iii) Available for sale investments 444,697,424 359,345,790 - - Equity Instruments Total financial assets 637,513,492 539,897,799 13,738,912 9,936,937 Financial liabilities 25,587,132 47,926,132 - - Those measured at amortised cost: 99,069,239 50,474,089 - - Bank overdrafts 19,286,616 20,991,632 50,446,250 35,940,117 Borrowings - - Trade and other payables 3,963,455 7,552,790 7,297,290 6,689,183 Obligations under finance lease 7,297,290 6,689,183 Proposed dividend 57,743,540 42,629,300 155,203,732 133,633,826 Total financial liabilities Financial risk management The treasury function provides services to the business, co-ordinates access to financial markets, monitors and manages the financial risks relating to the operations of the Group. These risks include market risk (including currency risk, interest risk and price risk), credit risk and liquidity risk. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. Market risk The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group manages its exposure to interest rate and foreign currency risk by use of a proper mix in fixed and floating rate borrowings. 116

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 30. FINANCIAL INSTRUMENTS (CONT’D) Financial risk management (Cont’d) Foreign currency risk management The Group and the Company undertake certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. Currency profile The currency profile of the financial assets and financial liabilities of the Group and the Company is summarised as follows: 2017 2016 Financial Financial Financial Financial THE GROUP Assets Liabilities Assets Liabilities Currency Rs Rs Rs Rs Mauritian Rupee Euro 586,545,961 155,203,732 499,088,249 132,835,725 United States Dollar 3,658,387 - 3,069,394 - Japanese Yen - - Kwacha 46,765,206 - 37,635,062 - Indian Rupee 103,828 - 105,094 - 440,110 - - - - 798,101 155,203,732 637,513,492 539,897,799 133,633,826 2017 2016 Financial Financial Financial Financial THE COMPANY Assets Liabilities Assets Liabilities Currency Rs Rs Rs Rs Mauritian Rupee United States Dollar 13,707,904 57,743,540 9,905,928 42,629,300 31,008 - 31,009 - 13,738,912 57,743,540 9,936,937 42,629,300 Foreign Currency Sensitivity Analysis The Group and the Company hold bank accounts denominated in United States Dollar, Euro, Japanese Yen and Kwacha. The Group and RHT Holding Ltd | Annual Report 2017 | Leadership through innovation the Company are exposed to the risk that the exchange rate of Rs relative to United States Dollar, Euro, Japanese Yen and Kwacha may change in a manner that may have an effect on the reported value of the bank accounts. The following demonstrates the sensitivity to a reasonably possible change in the MUR exchange rate, with all other variables held constant, of the Company’s loss before taxation and the Company’s equity.All other exposures are not considered to have any material effect the reported results as the amount denominated in foreign currency is minimal. Increase/ decrease Effect on profit in foreign before tax exchange rate MUR % 2017 +/- 1 467,342 USD +/- 3 109,752 EUR +/- 10 JPY +/- 12 10,383 ZMW 52,813 2016 +/- 1 376,041 117 USD +/- 3 92,082 EUR +/- 10 10,509 JPY +/- 12 - ZMW

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 30. FINANCIAL INSTRUMENTS (CONT’D) Financial risk management (Cont’d) Interest rate risk management The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings. The interest rate profile of the Group’s financial assets and financial liabilities at 30 June 2017 was: Currency Floating interest rate Rs Financial assets 2017 2016 Balances with banks %% 3.0 - 3.25 3.5 Currency Floating interest rate Fixed interest rate Financial liabilities Rs 2017 2016 2017 2016 Rs Bank overdrafts Rs %% %% Finance lease obligations Rs Loans 7.25 - 8.25 8.4 - 8.5 - - Trade and other payables - - 7.0 - 10.5 7.0 - 10.5 6.25 - 8.9 6.65 - 8.9 - - - - 7 7 Interest rate sensitivity analysis The interest rate sensitivity analysis below has been determined based on the exposure to interest rates for non-derivative financial instruments at the reporting date. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year. A 50 basis point increase or decrease represents management’s assessment of the reasonably possible change in interest rate. If interest rates had been 50 basis points higher/lower and all other variables were held constant, the profit for the year ended 30 June 2017 and 2016 would have decreased/increased by: THE GROUP THE COMPANY 2017 2016 2017 2016 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Rs Rs Rs Rs Profit or loss 643,099 529,765 212,234 145,043 Other price risks The Group is exposed to price risks arising from investments in listed investments quoted on the Stock Exchange of Mauritius. The Group is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Group does not actively trade these investments. The sensitivity analysis below have been determined based on the exposure to equity price risks at the reporting date. If equity prices had been 5% higher/lower: - P rofit for the year ended 30 June 2017 would have been unaffected from equity investments classified as available-for-sale and other equity reserves would increase/decrease by Rs 22,234,871 (2016: increase/decrease by Rs 17,697,290) as a result of fair value changes of available-for-sale shares. 118 - Profit for the year ended 30 June 2017 would have been affected from equity investments classified as held for trading and would increase/decrease by Rs 6,431,440 (2016: Rs 4,989,095) as a result of the changes in fair value of held for trading shares. The Group’s sensitivity to equity prices has not changed significantly from the prior year.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 30. FINANCIAL INSTRUMENTS (CONT’D) Financial risk management (Cont’d) Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group have adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group uses other publicly available financial information and its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually. The Group’s and the Company’s credit risk are primarily attributable to trade receivables. The amounts presented in the statement of financial position are net of allowances for doubtful receivables and represents the Group’s and the Company’s maximum exposure to credit risk. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Group has no concentration of credit risk in its trade receivables in 2016 and 2017. Financial assets that are neither past due nor impaired are of a high credit quality. Liquidity risk management Ultimate responsibility for liquidity risk management rests with the board of directors. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Liquidity and interest risk tables The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. On Demand Less than THE GROUP More than Total Rs 1 year 5 years Rs Rs 1 - 5 years Rs Rs 2017 25,587,132 - - - 25,587,132 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Bank overdrafts - 9,809,812 85,940,808 12,615,696 108,366,316 Borrowings - 2,971,876 Obligations under finance lease - 19,286,616 1,003,433 - 3,975,309 Trade and other payables - 7,297,290 - - 19,286,616 Proposed dividend - - 25,587,132 39,365,594 7,297,290 2016 86,944,241 12,615,696 Bank overdrafts 164,512,663 Borrowings Obligations under finance lease 47,926,132 - - - 47,926,132 Trade and other payables - 6,278,404 35,777,858 17,821,185 59,877,447 Proposed dividend - 3,588,396 - 20,991,632 4,056,636 - 7,645,032 - 6,689,183 - - 20,991,632 - - 47,926,132 37,547,615 6,689,183 39,834,494 17,821,185 143,129,426 119

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 30. FINANCIAL INSTRUMENTS (CONT’D) Financial risk management (Cont’d) Liquidity risk management (Cont’d) Liquidity and interest risk tables (Cont’d) On Demand Less than THE COMPANY More than Total Rs 1 year 5 years Rs Rs 1 - 5 years Rs Rs 2017 19,391,005 - - - 19,391,005 Financial Guarantee - 15,296,697 - - 15,296,697 Non interest bearing - 42,446,843 - - 42,446,843 Fixed interest rate instruments 19,391,005 57,743,540 - - 77,134,545 2016 Non interest bearing - 13,712,766 - - 13,712,766 Fixed interest rate instruments - 29,008,574 - - 29,008,574 - 42,721,340 - - 42,721,340 Financial guarantee contract risk The Company has provided financial guarantees to its subsidiaries and to third parties on behalf of its subsidiaries and associates. The Company is exposed to the risk that in the event of default from its subsidiaries and associates, there is the need to recognise the liability which represents the amount required to settle the obligation. The Company has guaranteed the amount by which the total assets fall short of the total liabilities of the respective subsidiaries, as follows: 2017 2016 Rs Rs RHT Holding Ltd | Annual Report 2017 | Leadership through innovation RHT Ventures Ltd 5,070,420 - Transport and Micropayment System Ltd (formerly known as Algorithmix Co Ltd) 9,724,000 - Transport and Micropayment System 1 Ltd 2,086,480 - Advanced Institute of Motoring 2,510,105 - 19,391,005 - 120

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 31. FAIR VALUE ESTIMATION The fair value of financial assets traded in active markets are based on quoted market prices at the close of trading on the reporting date. Financial assets are regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The financial statements include holdings in unquoted shares which are measured at fair value. The Group and the Company disclosed the classification of fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The following table provides an analysis of assets that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable: - Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; - Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and - Level 3 fair value measurements are those derived from valuation techniques that include inputs for the assets or liabilities that are not based on observation market data (unobservable inputs). THE GROUP 2017 Level 1 Level 2 Level 3 Total Rs Rs Available for sale investments Rs Rs Financial assets at fair value through profit or loss 411,359,872 444,697,425 Total 128,628,800 - 33,337,553 128,628,800 -- 539,988,672 573,326,225 - 33,337,553 THE GROUP 2016 Level 1 Level 2 Level 3 Total Rs Rs Available for sale investments Rs Rs Held for trading investments 358,317,820 359,345,790 Total 99,781,900 - 1,027,970 99,781,900 -- 458,099,720 459,127,690 - 1,027,970 There has been no transfers between the level 1 and level 2 fair value hierarchy of the Group. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Quoted prices Financial assets in this category include available-for-sale and held for trading investments. 121

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 31. FAIR VALUE ESTIMATION (CONT’D) Fair value using discounted cash flow analysis The financial statements do not include financial assets and financial liabilities measured at fair value using discounted cash flow analysis. Unquoted equity investments The Group has underlying investments in companies which are not quoted in an active market. Transactions in such investments do not occur on a regular basis. The Group uses a dividend yield basis to fair value the investments. The dividend yield method consists of analysing the historical dividend yields of the unquoted investments for a period of 5 years. An estimate of the expected dividend yield for the next year is then performed based on the historical trend. This ratio is then used to estimate the fair value of the unquoted shares. Valuation process for Level 3 valuations Valuations are the responsibility of the board of directors of the Group. The valuation of investments is performed on a quarterly basis by the Group Financial Controller and reviewed by the Board of Directors of the Group. The valuations are also subject to quality assurance procedures performed by the Board of Directors. They verify the major inputs applied in the latest valuation by agreeing the information in the valuation computation to relevant documents and market information. In addition, the accuracy of the computation is tested. The latest valuation is also compared with the valuations in the four preceding quarters as well as with the valuations of the two preceding annual periods. If fair value changes (positive or negative) are more than certain thresholds set, the changes are further considered by the Group Financial Controller and the Board. On a quarterly basis, after the checks above have been performed the Group Financial Controller presents the valuation results to the board of directors. This includes a discussion of the major assumptions used in the valuations, with an emphasis on the more significant investments and investments with fair value changes outside of the relevant thresholds set out above. The Group Financial Controller considers the appropriateness of the valuation methods and inputs, and may request that alternative valuation methods are applied to support the valuation arising from the method chosen. Any changes in valuation methods are discussed and agreed with the Group’s board of directors. The following is the sensitivity of the investments to the significant inputs mentioned above: RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Leal & Co. Ltd (“Leal”) Leal & Co. Ltd is a family company founded in 1970. For the last 40 years, they have been the pioneers in the automotive sector in Mauritius. The company represents prestigious brands such as BMW, MINI, Rolls Royce and Renault. They offer a full range of highly professional automotive services, including but not limited to Sale and service, Warranty service, Paint and Panel service, and Road assistance service, amongst others. PNL PNL is a subsidiary of the Leal group and is specialized in the Brand development and distribution of consumer goods, pharmaceutical products, as well as distribution of chemical products. They represent prestigious brands in the pharmaceutical industry, such as Pfizer, Merck, Diageo, Unilever, amongst others. Name of unquoted security Valuation Input Sensitivity 2017 2016 Leal Methodology % Rs Rs 122 PNL Earnings Dividend Yield +2 (151,534) N/A Based -2 157,719 N/A +2 (222,529) N/A -2 231,612 N/A

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 31. FAIR VALUE ESTIMATION (CONT’D) Exposures to Exchange Traded Funds through Mauritian Funds The Group also invests in Mauritian Funds which have exposure to Exchange Traded Funds involved in Gold, Bonds, EUR, USD amongst other exposures on the African and Pan-African Market. The Group is therefore exposed to changes in the Net Asset Value of the underlying Funds. Name of unquoted security Valuation Input Sensitivity 2017 2016 Other Funds Methodology % Rs Rs Net Asset Net Asset + 10 1,330,958 N/A Value Value - 10 (1,330,958) N/A Level 3 reconciliation Opening balance 2016 2015 Transfer from Level 3 to Level 2 Rs Rs Total gain in profit or loss Additions during the year 1,027,970 1,027,970 Disposals during the year - - - Closing balance 19,000,000 - 13,309,583 - Total gain for the year included in profit or loss for assets held at the end of the reporting period - 1,027,970 33,337,553 - 19,000,000 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 123

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 32. RELATED PARTY TRANSACTIONS Related parties are entities with common direct or indirect shareholders and/or directors. Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions. THE GROUP Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation. THE COMPANY Details of transactions between the fellow subsidiaries are disclosed below. Balance: Amount payable to Amount receivable from Dividend Rental payable subsidiaries subsidiaries 2017 2016 2017 2016 2017 2016 2017 2016 Rs Rs Rs Rs Rs Rs Rs Rs 42,446,843 29,008,574 (376,039) (123,123) 19,086,473 29,459,441 - - Nature and volume of transaction: Wages, salaries, rental and Costs recharges Dividend Rental expenses other expenses paid by the subsidiary on behalf of holding company 2017 2016 2017 2016 2017 2016 2017 2016 Rs Rs Rs Rs Rs Rs Rs Rs (13,438,269) (3,521,960) (252,916) (238,149) (10,372,968) (14,362,175) 401,525 401,525 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation All inter-company loan bear interest at 7% (2016: 7%). The loans are unsecured and repayable on demand. For the financial year ended 30 June 2017, the Company assessed that no provision for impairment losses relating to amounts owed by related parties is necessary (2016: nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the entity related party operates. Compensation of key management personnel The remuneration of directors during the year is as follows: THE GROUP THE COMPANY 2017 2016 2017 2016 Rs Rs Rs Rs Short term benefit 7,056,925 7,382,917 - 651,894 - Executive 3,235,176 2,451,584 3,235,176 2,451,584 - Non-Executive 10,292,101 9,834,501 3,235,176 3,103,478 124

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 33. INVESTMENT INCOME THE GROUP 2017 2016 Rs Rs Dividend Income 18,232,930 17,729,500 Profit on sale of investments 17,130,029 17,922,069 35,362,959 35,651,569 34. OPERATING LEASE ARRANGEMENTS The Group as a lessor Operating leases relate to the equipment owned by the Group with lease terms of between 1 to 3 years, with an option to be renewed on a yearly basis, the equipment are disclosed in note 4(v). Operating lease also includes vehicles owned by the Group with lease term of 5 years. The lessee does not have an option to purchase the equipment or the vehicles at the expiry of the lease period. Non - cancellable operating lease receivables THE GROUP 2017 2016 Rs Rs Not later than 1 year 5,647,183 5,140,310 Later than 1 year and not longer than 5 years 9,523,861 8,820,164 15,171,044 13,960,474 Lease income recognised on a straight-line basis THE GROUP 2017 2016 Rs Rs Income from leased asset 14,257,139 13,960,474 The Group as a lessee The Group arranged for an Operating Lease with Finlease Company Ltd for 10 buses. The lease term is 5 years. The lessee does not RHT Holding Ltd | Annual Report 2017 | Leadership through innovation have an option to purchase the equipment at the expiry of the lease period. Non - cancellable operating lease payable THE GROUP 2017 2016 Rs Rs Not later than 1 year 6,399,933 - Later than 1 year and not longer than 5 years 23,138,218 - 29,538,150 - Lease expense recognised on a straight-line basis THE GROUP 2017 2016 Rs Rs 125 Rental expenses 492,303 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 35. PROFIT BEFORE TAX Profit from operations is arrived at after: Charging: THE GROUP THE GROUP 2017 2016 Rs Rs Allowances for doubtful debt 1,341,708 422,828 Amortisation of intangible assets 793,798 681,063 Staff costs 136,333,938 Depreciation on plant and equipment 155,888,196 18,473,295 19,977,698 THE COMPANY 2017 2016 Rs Rs Staff costs 8,212,440 8,008,836 36. GOVERNMENT GRANT THE GROUP 2017 2016 Rs Rs Received during the year 76,518,000 64,139,000 Government grants have been received for operation of bus services and were in respect of bus fares of students, disabled persons and pensioners. There are no unfulfilled conditions or contingencies attached to these grants. 37. EVENTS AFTER REPORTING DATE On 1 August 2017, Transport and Micropayment System 1 Ltd and Transport and Micropayment System Ltd (formerly known as Algorithmix Co Ltd) amalgamated, with the former being the surviving entity. There were no other events after the reporting date which require disclosures in or amendments to these financial statements. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 126

PROXY FORM I/We …………………………………………….………………........................of ……………………………………………................................... being a Shareholder of RHT HOLDING LTD, hereby appoint ………………..…………………………………………...................of …………………………………....................................... as my/our proxy to attend and vote on my/our behalf at the Annual Meeting of shareholders of the Company to be held on the 12th December 2017 at 10.30 hours at the RHT House, 15/15A Gordon Street, Rose Hill. I/we desire my/our vote to be cast on the Resolutions as follows: RESOLUTIONS For Against Abstain ORDINARY RESOLUTIONS: I. RESOLVED that the minutes of proceedings of the last Annual meeting of Shareholders held on 14 December 2016 be hereby approved. II. RESOLVED that the audited financial statements of the Company for the financial year ended 30 June 2017 be hereby adopted. III. RESOLVED that Ms. Meha DESAI be hereby appointed as Director of the Company IV. RESOLVED that Mr. Paul C. K. F. AH LEUNG be hereby re-appointed as Director of the Company. V. RESOLVED that Mr. Ravindra GOBURDHUN be hereby re-appointed as Director of the Company. VI. RESOLVED that Mr. Uday GUJADHUR be hereby re-appointed as Director of the Company VII. RESOLVED that Mr. Yoosuf Mohamed KUREEMAN be hereby re-appointed as Director of the Company. VIII. RESOLVED that Mr. Gilbert Patrick Stephane LEAL be hereby re-appointed as Director of the Company. IX. RESOLVED that Mr. Kamil PATEL be hereby re-appointed as Director of the Company. X. RESOLVED that Dr. Sidharth SHARMA be hereby re-appointed as Director of the Company. XI. RESOLVED that Mr. Van Man SIN KWOK WONG be hereby re-appointed as Director of the Company. XII. RESOLVED that ERNST & YOUNG be hereby re-appointed as the auditors of the Company to hold office until the next Annual Meeting and to authorise the Board of Directors to fix their remuneration. Dated this ……………….......................................... day of ………….....................................2017. Signature: ……………………………… Notes: 1. A Shareholder of the Company entitled to attend and vote at this meeting may appoint a proxy of his/her own (whether the person is also a shareholder or not) to attend and vote on his/her behalf. 2. Please tick in the appropriate box how you wish to vote. If no specific direction is given, the proxy will exercise his/her own discretion as to how he/she votes. The instrument appointing the proxy should reach the Company Secretary by post or by email, 24 hours before the start of the Annual Meeting of Shareholders (i.e. at latest on the 11th December 2017 at 10:30 hours), at the address below: By post: Mrs. Vidou Seetaram Navitas Corporate Services Ltd Navitas House Robinson Road, Floréal By email: [email protected]