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Corporate Governance Report Environmental Report The Legislated Euro norms of Euro 1 is exceeded in about 43 % of our fleet being operated as on date. The new vehicles being procured are equipped with the technology of electric retarder which will in turn bring in fuel efficiency and reductions in waste i.e. brake lining and other wear and tear materials. Following the fleet renewal in the calendar year 2016 – 2017, RHT has now buses with Euro IV norms and the graph below provides an indication of CO2 emission on our fleet of buses. Fuel & CO2 Emission 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 5,00,000 0 July 13to June 14 July 14 to June 15 July 15 to June 16 July 16 to June 17 CO2 (Kg) FUEL (Lts) Standard CO (g/kWh) NOx (g/kWh) HC (g/kWh) PM (g/kWh) Euro 0 12.3 15.8 2.6 N/A Euro I 4.9 9 1.23 0.4 Euro II 4 7 1.1 0.15 Euro III 2.1 5 0.66 0.1 Euro IV 1.5 3.5 0.46 0.02 Euro V 1.5 2 0.46 0.02 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Contribution to the water table RHT Bus Services Ltd has moved to the use of sealed maintenance free batteries thus reducing the risk of battery electrolyte falling on the ground and seeping in. This has also contributed to an increased life cycle of the batteries and has reduced the risk of lead pollution caused by cracked battery casings. All cleaning activities are performed in scheduled area thus again reducing risk of water table contamination. As per regulation a monthly analysis of the effluent is done and the table below provides an indication of the quality of effluents from the cleaning /washing operations. Average Yr 16-17 Units Norms 567.50 COD 1500 201.10 BOD 5 to 9 3.13 TKN 80 7.10 pH 5 to 9 95.29 Total suspended solids 400 0.01 Lead 1 0.20 Zinc 2 0.03 Chromium 1 <0.001 Cadmium 0.05 0.01 Nickel 2 Manganese 2 50 0.13 Mercury 0.1 Total Organic Halides 1 <0.0002 Total Phosphorous. 50 <0.01 0.50

Corporate Governance Report Contribution RHT Holding Ltd | Annual Report 2017 | Leadership through innovation to the reduction of Greenhouse Gases Installation of 117 PV panels producing a peak of 27.46 KwP have been installed though not functional yet 51

Corporate Governance Report Recycling of waste Along with the daily cleaning activity pet bottles recouped from the cleaning operation are stacked in a separate bin and disposed of to the approved supplier i.e Polypet Ltd at the rate of Rs7 per kg. Disposal of used batteries and used oil All used batteries are disposed of after their service life at the rate of Rs23 per kg to approved suppliers and used oil to Virgin Oil Co at the rate of Rs1 per litre. The used oil is contained in a steel tank as per regulations. Rainwater Harvesting All rain water from the roof top of the Administrative building and workshop are channeled to water tanks along with training of the cleaning personnel on water usage. A reduction of 26% has been noticed at the main consuming area. Contribution to the reduction of Green House Gases Our consumption from the National grid has seen a substantial drop in the electrical power through the use of LED flood lights, installation of Timers and being more responsible to power consumption. These efforts have a positive impact on the reduction of Green House gases. Installation of 117 PV panels producing a peak of 27.46 KwP have been installed though not functional yet. All power produced by the PV panels will be connected to the grid. 2014-2015 Parking 2 Kwh Admin Kwh 2015-2016 2016-2017 1,013 74,115 1,059 74,187 943 65,841 Electricity Usage (units) Electricity Usage (Kwh) RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 1,100 80,000 1,000 70,000 60,000 900 800 2014-2015 2015-2016 2016-2017 PARKING 2 ADMIN Health & Safety Report Safety Committee and Safety induction at RHT The Safety Committee meets every two months and chaired by Mr. Adiapen in the presence of the Health and Safety Officer 52 Mr. Nitin Gobin. Safety induction is being carried to ensure that all new staff members go through it. It is intended that all bus crews and other employees are well trained before starting to work for the company. Traffic Officers have been briefed and trained by the Health and Safety Officer to act as trainers for the safety induction program.

Corporate Governance Report Defensive Driving A defensive driving session is held once a year. This act as a refresher course for drivers to improve and maintain good driving habits. The aim is also to reduce accidents, enhance safety and improve fuel consumption. Simulation and evacuation of an accident The annual accident drill was held at Sunray, Coromandel where an accident between a bus of RHT and another vehicle was simulated. The exercise received support from the Police team, fire fighters,ambulance and volunteers from the company. The scenario was designed jointly by RHT and the Mauritius Police Force and approved by the Commissioner of Police. The exercise allowed bus crews and passengers to know more about their responsibilities in the event of an accident and understand the evacuation plan set by RHT in case of an accident. The findings from the drill were discussed with the management and all shortcomings were highlighted and procedures were reviewed to better enhance the evacuation process. Accident Review Committee (“ARC”) For all at faults accident, an ARC is conducted and the drivers are called to explain the accidents. The findings of the ARC are discussed and final decision is taken by the chairman of the committee. Corrective actions are then taken by the HR Department. Most cases of at faults accident are due to: • Careless driving • No help from conductor while reversing, parking etc. • Wrong judgement when turning The recommendations are constantly monitored through ongoing training programs for drivers. All bus crews are advised to be more responsible while driving in order to ensure safety for one and all. In house training In house training is also carried out to inculcate the notion of safety in our operations. A list of training delivered during the last financial year is provided in the table below. Training Month of RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Training on use of Fire extinguisher & Hose reel Aug-16 Training on fuel delivering, ordering procedures and Spillage Sep-16 Fire Fighting & Evacuation Nov-16 Safety induction & Fire Evacuation Mar-17 Safety on premises and roads when attending breakdown May-17 Defensive driving May-17 Emergency procedure-Accident Jun-17 Legal Aspects in Road Traffic Jun-17 53

Corporate Governance Report Other Health and Safety issues for the last financial year are as follows: Date Issues 12 July 2016 Safety audit at Port Louis, Rose Hill, St Patrick 25 August 2016 Training on use of fire extinguishers and hose reels 01 September 2016 Risk Assessment updated 09 September 2016 Training on fuel delivering, ordering procedures and spillage 16 September 2016 Procedure for Salmonella discussed and sent 21 September 2016 Safety audit at St Patrick and Rose Hill Bus stations 05 October 2016 Review of Cyclone procedure 21 October 2016 Training on - Filling in of ASF Form 21 October 2016 Training on 6’s Principle 10 November 2016 Review of Emergency procedures 23 November 2016 Fire drill in depot February 2017 Replenishment of Fire extinguisher in depot 08 February 2017 Safety committee 01 March 2017 Safety Induction and fire evacuation March 2017 Evaluation: Tender for shoes - Health and Safety aspects 20 April 2017 Accident drill at Coromandel 10 May 2017 Safety Committee 17 May 2017 Health and Safety audit for main store done 24 May 2017 Safety in premises and on road when attending breakdown RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Social Report Employees The annual health camp was organized on the 10th of November 2016. Employees were able to have the eye sight tested. With the help of the NGO Diabetes Safeguard employees had their blood sugar and blood pressure tested. A town hall exercise was organized for all employees of RHT Bus Services Ltd. on the 23rd of March 2017. The meeting was well attended, questions were taken from the assistance and the evening ended with a dinner. Customer Proximity Engagement RHT Bus Services Ltd held its customer proximity engagement exercise on the 13th May 2017 whereby new developments and innovation were presented to the customers. The forum was also used to gather feedback on ways and means to improve the level of service. Corporate Social Responsibility Report As part of its CSR activities, RHT BS launched jointly on the 22nd of August 2017 with Red Cross Mauritius a first aid video on how to handle five types of emergencies at Voila, Bagatelle. These videos will be screened in our buses and it is hoped that, while commuting, our passengers will be able to grasp some life saving techniques. Charitable and Political Donations Report In keeping with the spirit of the Code, the Board is pleased to provide the full list of charitable donations given in the year under review. 54

Corporate Governance Report Donation MUR Reason Organisation des Affaires Sociales de Roche Brunes 10,000 Roche Brunes is part of the region that RHT serves. Mauritius Round Table No 5 6,000 Ecole du Fatima specialises in helping children with learning Hampstead Junior School difficulties. Ladies Circle No 1 5,000 Hampstead Junior School is located in Coromandel, a region that RHT serves. Mrs. Kewalpattee Bhoobun 10,000 Barachois de Mahebourg rehabilitation project. Coastal region APSA International preservation. 59,000 Case of extreme distress. Person in question is a customer of RHT.. 5,000 Help to diabetic patients. A large percentage of our own employees suffer from this ailment. Total 95,000 The Company has made no political donation during the year under review. RHT BS launched jointly on the 22nd of August 2017 with Red Cross Mauritius a First Aid video on how to handle five types of emergencies RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 55

RHT Holding Ltd | Annual Report 2017 | Leadership through innovationCorporate Governance Report Principle Seven Audit Organisations should consider having an effective and independent internal audit function that has respect, confidence and cooperation of both the Board and the management. The Board should establish formal and transparent arrangements to appoint and maintain an appropriate relationship with the organisation’s auditors. External Auditors Ernst & Young were appointed as external auditors and performed the first year audit in 2017 following a competitive tender process. The Committee reviewed the processes followed to ensure EY’s independence and extended our policy on non-audit services to the firm to ensure that there was no impact on the audit service or EY’s independence. EY were well-positioned and appropriately informed and this enabled them to perform an effective audit. I would like to thank EY for their work as auditor of RHT and its subsidiaries for the financial year ended 30 June 2017 and for their professionalism in securing an orderly handover from Deloitte (the previous auditor). Internal Audit Function The annual work plan of the internal auditor is approved by the Audit and Risk Committee. The following key findings with recommendations was presented to the Management Team for consideration: 1. Recruitment and Induction 2. Training and Performance Management 3. Stock Management 4. Revenue Management The board and management have taken note of both the findings and recommendations and have implemented the recommendations to resolve all outstanding issues. Principle Eight Relations with Shareholders and Other Key Stakeholders The Board should be responsible for ensuring that an appropriate dialogue takes place among the organisation, its shareholders and other key stakeholders. The Board should respect the interests of its shareholders and other key stakeholders within the context of its fundamental purpose. Shareholders As RHT Holding Ltd is a publicly listed company the Board takes responsibility to ensure that comprehensive shareholder relationships are maintained with all shareholders no matter how small or large the shareholding. Each shareholder receives a copy of the annual report and is invited to participate in the annual general meeting. Copies of the previous annual reports as well as the minutes of the last three annual general meetings can be found on the website under the shareholder’s section. A notice of the annual general meeting is sent out fourteen days before the meeting takes place and all the rules governing the annual report as per the Companies Act 2001 are strictly observed. Every effort is made to address the concerns raised by any shareholder in a proactive and transparent manner. Customer Proximity RHT Holding Ltd organises meetings with its customers so as to provide them with better service. This is an opportunity for the Management of RHT Bus Services Ltd to receive feedback and suggestions from customers so that we can improve our services. A customer proximity platform which has been designed to create a deeper relationship with our passengers and clients will now take place every quarter. The whole concept of the CPE is to be closer to the passengers and meet them whether it is at RHT or in the area close to where they live. In this way RHT is in a better position to understand the source of their disturbances. It also allows RHT the opportunity to explain its services and what’s coming soon to the passengers, listen to the problems they are facing and to take into consideration their suggestions. The last customer engagement initiative was held on 20 May 2017 at RHT House. 56 Customer Survey A customer survey was carried out in July and August 2017 by an independent market research agency to test the pulse of our customers over the past financial year. The main results are shown on the next pages.

Corporate Governance Report Top of the Mind Brand Awareness 70% 60% 60% 50% 40% 30% 21% 20% 10% 15% 0% Competitor 1 Competitor 2 RHT Brand usage 80% 70% 13% 11% 70% RHT Competitor 1 Competitor 2 60% 50% 40% 30% 20% 10% 0% Global customer satisfaction RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 84% 83% 82% 80% 78% 76% 74% 74% 72% 71% 70% 68% 66% 64% 57 RHT Competitor 1 Competitor 2

Vehicle condition 82% 81% 70% 74% 80% Competitor 1 78% RHT Competitor 2 76% 81% Reliability 74% 75% 72% RHT 70% 11% 70% 13% Competitor 2 68% Competitor 1 66% 64% 82% 80% 78% 76% 74% 72% 70% 68% 66% 64% RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 82% 81% How is the Double Decker viewed? 80% 78% 79% 76% 75% 74% 72% 71% 70% 68% 58 66% Cleanliness Comfortable Secured Innovative

Diabetes Day with Wellkin Hospital 59 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation

RHT Holding Ltd | Annual Report 2017 | Leadership through innovationSecretary’s Certificate At 30 June 2017 In accordance with section 166(d) of the Companies Act 2001, we certify that to the best of our knowledge and belief, the Company has filed with the Registrar of Companies, all such returns as are required of the Company under the Companies Act 2001 for the year ended 30 June 2017. Navitas Corporate Services Ltd Company Secretary 27 September 2017 60

Statutory Disclosures RHT Holding Ltd | Annual Report 2017 | Leadership through innovation At 30 June 2017 1. Directors The names of the directors of the Company at 30 June 2017 are set out on page 30 of the Report. The Directors of Subsidiaries are also listed on page 31 of the Report. 2. Directors’ remuneration The Directors’ remuneration from the Company and from the subsidiaries are listed on page 43 of the Annual Report. 3. Financial statements The financial statements are attached to the Annual Report. 4. Auditors’ Report The external auditors are responsible to ensure that the financial statements are fairly presented. The report signed by Ernst & Young is attached to the Annual Report. The remuneration accruing to the auditors for the year for audit for the group is Rs1,595,000. (2016: Rs1,025,000) and Rs275,000 (2016: Rs123,500) for other non-audit services comprising of tax services. 5. Corporate Social Responsibility The CSR donations amounted to Rs Nil for the year (2016: Rs127,500). 6. Donations Donations of Rs95,000 were made during the year (2016: Rs40,000). There were no political donations made during the year. 7. Dividends The Board declared a dividend of Rs1.15 per share for the year ended 30 June 2017 compared to Rs1.05 per share for the year ended 30 June 2016. 8. Corporate Governance Report The interest of the Directors of the Company are listed on the table on page 31 of the Report. 9. Corporate Governance Report The Corporate Governance report forms part of the Report. Paul C.K.F Ah Leung Dr. Sidharth Sharma Chairperson Group Chief Executive Officer 61

Financial Statements Independent Auditor’s Report 63 to the Shareholders of RHT Holding Ltd 67 68 Statements of Financial Position 70 72 Statements of Profit or Loss and other 73 Comprehensive Income Statements of Changes in Equity Statements of Cash Flows Notes to the Financial Statements RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 62

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF RHT HOLDING LTD Report on the Audit of the Financial Statements Opinion We have audited the financial statements of RHT Holding Ltd (the “Company”) and its subsidiaries (the “Group”) set out on pages 67 to 126 which comprise the statements of financial position as at 30 June 2017 and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows for the year then ended, and notes to the financial statements, including significant accounting policies. In our opinion, the consolidated financial statements give a true and fair view of the financial position of Group and Company as at 30 June 2017, and of their financial performance and their cash flows for the year then ended in accordance with International Financial Reporting Standards and comply with the Companies Act 2001 and the Financial Reporting Act 2004. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group and the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements. Revenue Recognition Refer to notes 1(n) and 20 to the consolidated financial statements. Key Audit Matter How the matter was addressed in the audit Revenue of the Group is derived from the following key segments: Our audit procedures include the following: RHT Holding Ltd | Annual Report 2017 | Leadership through innovation bus operations, investing activities, rental of offices and trading and service fee (Note 20). The bus operations is a business that takes in - W e evaluated the design and implementation of the finance and significant amount of cash; 56% of the group revenue is in the form operational processes surrounding the revenue system and cash of cash collected directly from end customers, which is handled by takings by performing enquiries, observation and re- performance employees before being banked on a daily basis. of controls. We then conducted testing of specific key controls to evaluate their operating effectiveness to obtain sufficient, appropriate As stated in the accounting policies in Note 1(n), revenue from bus fare evidence that the specific key controls operated effectively throughout and hire charges are recognised upon customer acceptance. the year as intended. Handling of cash is inherently risky and is highly susceptible to - A s part of our substantive procedures, we have tested a sample of misappropriation and fraud. Ensuring completeness of revenue is cash collected per day to the source data to ascertain whether they therefore a challenge in a business which handles a high volume of were accurately captured and recorded. We have also reconciled physical cash. Revenue is usually measured by cash collection and a sample of daily cash collection to bank deposit slips and bank there is a high risk that revenue is materially misstated. statements in order to ensure that cash collected matches with deposits in the bank. We have therefore considered cash sales as a Key Audit Matter since one of the main drivers of Group’s performance is the bus operations - W e have performed analytical procedures on revenue arising from which generates high volume of cash from their activities. bus operations to consider unusual trends that could indicate material misstatement to revenue. Analytical procedures performed consisted of monthly sales analysis, revenue per bus and correlation review between revenue and cash receipts amongst others. - W e scrutinised all bank reconciliations and performed cash sales cut off testing at year end to ensure that cash sales were properly banked and recorded at the correct amount in the appropriate period. - W e have performed post year end reversal testing to validate that pre 63 year end revenue was not inappropriately recognised. - We have obtained revenue listings from the client and analysed the reversals made during the financial year under review to identify unusual transactions. We have tested a sample of these which were recorded in the client ledger.

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF RHT HOLDING LTD (CONT’D) Key Audit Matters (cont’d) Classification of Investment Property as Property, plant and equipment at Group level Refer to notes 1 (c), 1 (d), 3, 4 and 5 to the consolidated financial statements. Key Audit Matter How the matter was addressed in the audit As set out in the accounting policies in Note 1 to the consolidated Our audit procedures included the following: financial statements, investment properties are carried at fair value and changes in fair value are recognised in the statement of profit - W e have obtained and reviewed management re-assessment of or loss. Investment properties consisting of the premises currently investment properties that should have been accounted as owner- occupied by the subsidiaries of the Group and the holding company, occupied property at group level in prior years. We performed RHT Holding Ltd (the “Company”), are considered to be owner enquiry to ensure that these were properly identified. occupied from a group perspective and have to be reclassified as an item of Property, Plant and Equipment (PPE) in the Group’s financial - W e have ensured the cumulative fair value gains on owner occupied statements on consolidation. This reclassification requires the reversal portion were correctly reclassified from Retained Earnings to of cumulative fair value movements on the investment property Fair Value Reserve. We also ensured that investment properties occupied by the Group and the recognition of a fair value reserve and were properly restated in the statement of financial position and accumulated depreciation. On an annual basis, Land and Building are recognised as Property, Plant and Equipment. revalued and are subsequently shown at revalued amount in the Group financial statements, based on valuations by external independent - We have re-calculated depreciation following the reclassification of valuers, less subsequent depreciation. All other property, plant and the relevant property into PPE on consolidation and we ensured that equipment are stated at historical cost less accumulated depreciation the depreciation rate used was appropriate. and impairment loss. - In accordance with IAS 8 ‘’Accounting Policies, Changes in Accounting Whilst the reclassification was done over the years, the amount to Estimates and Errors’’, we have ensured proper disclosures were be reclassified had been incorrectly assessed as not all investment made to explain the nature of the prior period error and the effects properties that should have been reclassified to PPE had been on the correction on all accounts affected reclassified as such. Accordingly, as set out in note 3, it gives rise to a prior year adjustments in accordance with IAS8. Due to the significance and complexity of this adjustment, it has been categorised as a key audit matter RHT Holding Ltd | Annual Report 2017 | Leadership through innovationOther Information The directors are responsible for the other information. The other information comprises the Directors’ Report and the Company Secretary’s Certificate as required by the Companies Act 2001, but does not include the financial statements and our auditor’s report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Statements The directors are responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act 2001 and the Financial Reporting Act 2004, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the directors are responsible for assessing the Group and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the Group and or the Company or to cease operations, or have no realistic alternative but to do so. 64

INDEPENDENT AUDITOR’S REPORT RHT Holding Ltd | Annual Report 2017 | Leadership through innovation TO THE SHAREHOLDERS OF RHT HOLDING LTD (CONT’D) Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group and the Company’s internal control. • E valuate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the director’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern. • E valuate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and the Company to express an opinion on the Group and Company financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Other matter This report is made solely for the Company’s shareholders, as a body, in accordance with Section 205 of the Companies Act 2001. Our audit work has been undertaken so that we might state to the Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report, or for the opinions we have formed. 65

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF RHT HOLDING LTD (CONT’D) Report on Other Legal and Regulatory Requirements Companies Act 2001 We have no relationship with or interests in the Company other than in our capacity as auditors, tax advisors and dealings in the ordinary course of business. We have obtained all the information and explanations we have required. In our opinion, proper accounting records have been kept by the Company as far as it appears from our examination of those records. Financial Reporting Act 2004 The directors are responsible for preparing the Corporate Governance Report. Our responsibility is to report on the extent of compliance with the Code of Corporate Governance as disclosed in the annual report and whether the disclosure is consistent with the requirement of the Code. In our opinion, the disclosures in the Corporate Governance Report are consistent with the requirements of the Code. ERNST & YOUNG DARYL CSIZMADIA, C.A. (S.A) Ebène, Mauritius Licensed by FRC 27 September 2017 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 66

STATEMENTS OF FINANCIAL POSITION AT 30 JUNE 2017 THE GROUP THE COMPANY 2016 Notes 2017 Rs 2015 2017 2016 Rs Rs RESTATED Rs Rs RESTATED ASSETS 4 199,322,757 205,612,699 - - 5 73,000,000 28,500,000 224,189,360 - - NON-CURRENT ASSETS 6 3,921,129 4,331,546 28,600,000 - - Property, plant and equipment 7 - - 4,501,058 476,624,066 476,624,066 Investment properties 8 - - - - - Intangible assets 9 - - - Investment in subsidiaries 444,697,424 359,345,790 Investment in associates 10 343,319,683 Investment in securities - Available for sale 15 128,628,800 99,781,900 - - Financial Assets at fair value through profit 183,033 183,033 102,641,000 183,033 183,033 or loss 216,129 Deferred tax assets 849,753,143 697,754,968 476,807,099 476,807,099 703,467,230 CURRENT ASSETS 11 4,991,512 4,782,466 - - Inventories 12 42,028,124 31,932,862 3,070,168 9,852,266 7,382,242 Trade and other receivables 27 38,033,499 52,470,490 45,752,526 3,965,583 2,624,631 Cash at bank and in hand 65,711,722 85,053,135 89,185,818 114,534,416 13,817,849 10,006,873 TOTAL ASSETS 818,001,646 934,806,278 786,940,786 490,624,948 486,813,972 EQUITY AND LIABILITIES 24,324,300 13 24,324,300 24,324,300 610,804,871 24,324,300 24,324,300 CAPITAL AND RESERVES 696,317,165 582,408,644 407,968,646 418,777,332 Stated capital 14 635,129,171 Reserves 15 720,641,465 606,732,944 432,292,946 443,101,632 16 50,509,700 TOTAL EQUITY ATTRIBUTABLE TO 17 89,259,427 44,195,685 325,724 - - OWNERS OF THE COMPANY 335,231 273,225 - - 27 40,033,000 587,000 991,000 NON CURRENT LIABILITIES 14 45,924,000 44,433,571 7,550,749 - - Borrowings 15(b) 991,579 3,964,394 Deferred tax liabilities 17 98,419,173 587,000 991,000 Retirement benefit obligations 18 136,510,237 92,866,875 Obligations under finance leases 19 45,201,337 25,587,132 47,926,132 5,753,054 - - RHT Holding Ltd | Annual Report 2017 | Leadership through innovation CURRENT LIABILITIES 9,809,812 6,278,404 2,228,431 - - Bank overdraft (secured) 1,901,850 1,775,180 3,558,434 1,462 - Borrowings 2,971,876 3,588,396 - - Tax liability 21,022,863 50,446,250 36,032,157 Obligations under finance leases 30,086,616 21,083,672 6,689,183 7,297,290 6,689,183 Trade and other payables 7,297,290 6,689,183 Dividend 84,453,302 57,745,002 42,721,340 77,654,576 87,340,967 818,001,646 TOTAL EQUITY AND LIABILITIES 490,624,948 486,813,972 934,806,278 786,940,786 Approved by the Board of Directors and authorised for issue on 27 September 2017. Paul C.K.F Ah Leung Dr. Sidharth Sharma Chairperson Group Chief Executive Officer 67 Certain amount are not comparable to the prior year financial statements as they were reclassified to conform with the current year’s presentation. The notes on pages 73 to 126 form an integral part of these financial statements.

STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 THE GROUP Notes 2017 2016 20 Rs Rs 22 RESTATED 33 Revenue 10 255,231,458 241,494,380 21 Cost of sales 5 (230,831,548) (199,152,684) Gross income 23 24,399,910 42,341,696 Investment income 8 35,362,959 35,651,569 Gain / (loss) on financial asset at fair value through profit or loss 24 28,846,900 (2,837,400) Other income 35 13,022,511 4,183,541 Loss on revaluation of investment properties 15 Administrative expenses (585,201) - Profit from operations (53,490,048) (56,621,310) Share of profit from associates 47,557,031 22,718,096 Finance costs Profit before tax - - Tax expense (9,744,294) (7,529,278) Profit for the year 37,812,737 15,188,818 Other comprehensive income / (loss) (631,592) (998,177) 37,181,145 14,190,641 Items that will not be reclassified subsequently to profit or loss: 4 (1,939,000) (79,420) Gain on revaluation of property, plant and equipment 16 Re-measurement loss on retirement benefit obligations 15(a) 1,305,000 610,000 Tax effect of re-measurement loss on retirement benefit obligations (3,244,000) (651,000) 9 Items that may be reclassified subsequently to profit or loss: 15(a) - (38,420) Gain / (loss) realised on disposal of available-for-sale financial assets 92,652,849 (29,737,191) Gain / (loss) on fair value of investments in securities Tax effect of items which have been reclassification to profit or loss 2,373,052 (19,603,449) 90,279,797 (10,133,742) Other comprehensive income / (loss) - - Total comprehensive income 90,713,849 (29,816,611) 127,894,994 (15,625,970) Profit attributable to : 37,181,145 14,190,641 Owners of the parent company RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Total comprehensive income attributable to: 127,894,994 (15,625,970) Owners of the parent company Basic and diluted earnings per share 25 3.06 1.17 Net asset value per share 26 59.25 49.89 Certain amount are not comparable to the prior year financial statements as they were reclassified to conform with the current year’s presentation. The notes on pages 73 to 126 form an integral part of these financial statements. 68

STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONT’D) FOR THE YEAR ENDED 30 JUNE 2017 THE COMPANY Notes 2017 2016 21 Rs Rs 23 Dividend income 24 19,086,473 29,459,441 Other income 15 Total income 8,600 8,727 Administrative expenses Profit from operations 19,095,073 29,468,168 Finance costs Profit before tax (13,086,784) (11,897,419) Tax (expense) / income Profit for the year 6,008,289 17,570,749 Other comprehensive income Items that will not be reclassified subsequently to profit or loss: (3,050,040) (1,843,191) Re-measurement gain on retirement benefit obligation Tax effect of re-measurement gain / (loss) on retirement benefit obligations 2,958,249 15,727,558 Total comprehensive income for the year (1,462) 5,324 2,956,787 15,732,882 16 221,000 187,580 15(a) 221,000 226,000 (38,420) - 15,920,462 3,177,787 The notes on pages 73 to 126 form an integral part of these financial statements. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 69

STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017 THE GROUP Notes Stated Translation Fair value and Retained Total capital reserve Investment earnings Rs revaluation Rs Rs reserves Rs Rs Balance as at 1 July 2015, as previously stated 3 24,324,300 3,352,710 367,231,680 240,220,481 635,129,171 Effect of correction of error 19 - - 12,976,364 (12,976,364) - Restated balance as at 1 July 2015 227,244,117 Other movement for the year 24,324,300 3,352,710 380,208,044 635,129,171 Profit for the year (restated) - - - - - Other comprehensive loss for the year - - - 14,190,641 (restated) 14,190,641 Total comprehensive (loss) / income for the - - year (29,127,191) (689,420) (29,816,611) Dividend - - - - (29,127,191) 13,501,221 (15,625,970) - (12,770,257) (12,770,257) At 30 June 2016 24,324,300 3,352,710 351,080,853 227,975,081 606,732,944 At 1 July 2016 24,324,300 3,352,710 351,080,853 227,975,081 606,732,944 Other movement for the year -- --- Profit for the year -- - 37,181,145 37,181,145 Other comprehensive income / (loss) for the year - - 93,957,849 (3,244,000) 90,713,849 Total comprehensive income for the year Dividend - - 93,957,849 33,937,145 127,894,994 19 -- - (13,986,473) (13,986,473) At 30 June 2017 24,324,300 3,352,710 445,038,702 247,925,753 720,641,465 The notes on pages 73 to 126 form an integral part of these financial statements. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 70

STATEMENTS OF CHANGES IN EQUITY (CONT’D) FOR THE YEAR ENDED 30 JUNE 2017 THE COMPANY Notes Stated Retained Total 19 capital earnings Rs At 1 July 2015 19 Profit for the year Rs Rs 439,951,427 Other comprehensive income for the year 24,324,300 415,627,127 15,732,882 Total comprehensive income for the year 187,580 Dividend - 15,732,882 15,920,462 At 30 June 2016 - 187,580 (12,770,257) At 1 July 2016 Profit for the year - 15,920,462 443,101,632 Other comprehensive income for the year 443,101,632 Total comprehensive income for the year - (12,770,257) Dividend 2,956,787 At 30 June 2017 24,324,300 418,777,332 221,000 24,324,300 418,777,332 3,177,787 - 2,956,787 (13,986,473) - 221,000 432,292,946 - 3,177,787 - (13,986,473) 24,324,300 407,968,646 The notes on pages 73 to 126 form an integral part of these financial statements. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 71

STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 THE GROUP THE COMPANY Notes 2017 2016 2017 2016 Rs Rs Rs Rs RESTATED CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation 37,812,737 15,188,818 2,958,249 15,727,558 Adjustments for: Depreciation on property, plant and equipment 4 19,977,698 18,473,295 - 5,513 (18,232,930) (17,729,500) - - Dividend income 33 - - - 659 - - Loss realised on disposal of assets classified as held for trading (28,846,900) 2,837,400 - - 3,050,040 (Increase) / decrease in fair value of investments held for trading 10 793,798 681,063 (8,600) 1,843,191 9,744,294 7,529,278 - (8,727) Amortisation of intangible assets 6 (202,922) (341,036) (183,000) - (17,130,029) (17,922,069) - Finance costs 24 4,404,000 5,896,571 - 226,000 (5,277,519) 2,958,041 - - Interest income 21 - - 585,201 - - - Profit on sale of investment in securities 33 2,548,015 75,802 - 1,341,708 422,828 2,858,440 - Provision for retirement benefits obligations 16 5,816,689 164,202 - 2,065,977 (Profit) / loss on disposal of property, plant and equipment 21 & 23 - 17,793,535 (30,131,384) 2,882,332 (2,470,024) Loss on revaluation of investment property 5 7,681,353 18,071,150 - 7,724,910 (7,229,638) Provision for obsolescence and losses on inventory 22 (2,757,061) (1,788,100) - 4,597,723 (11,835,962) 21,565,600 - Provision for bad debts 12 - - 9,002,944 60,809 - Losses on fixed assets scrapped (20,183,353) (86,771,070) 5,254,886 - 58,950,882 (2,631,915) OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 9 44,889,146 11,071,575 18,345,942 9,045,829 - 15,161,620 Increase in inventories 37,461,656 1,063,950 - - (Increase) / decrease in trade and other receivables - Increase in trade and other payables 45,143,009 19,135,100 - Purchase of investments in securities (442,916) (1,504,344) - Proceeds on sale of investments in securities (2,147,000) 11,071,575 Dividends received (6,158,000) 15,161,620 (3,651,344) CASH GENERATED FROM OPERATING ACTIVITIES 15(b) (6,600,916) Tax paid 16 15,483,756 Retirement benefit contribution paid 38,542,093 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation NET CASH GENERATED FROM OPERATING ACTIVITIES 6 (117,381) (511,551) - - 4 (42,486,355) (4,304,674) - - CASH FLOWS FROM INVESTING ACTIVITIES 21 (45,085,200) - - Purchase of intangible assets - - - Purchase of property, plant and equipment 19 (266,000) - - - Acquisition of investment property 24 202,922 341,036 8,600 8,727 Purchase of additional shares in subsidiary - - - - Interest on savings accounts received 27 2,669,999 Interest from intercompany balances 35,228,775 8,600 8,727 Proceeds on disposal of property, plant and equipment (1,805,190) (52,523,239) NET CASH USED IN INVESTING ACTIVITIES (13,378,366) (12,770,257) (6,689,183) (12,770,257) CASH FLOWS USED IN FINANCING ACTIVITIES (9,744,294) (7,529,278) (3,050,040) (1,843,191) Dividend paid 54,950,000 - - Finance costs paid (6,354,850) (5,788,665) - - Proceeds from bank loan (3,589,335) (3,556,393) - - Repayment of bank loans - Repayment of obligations under finance lease 21,883,155 (29,644,593) (9,739,223) (14,613,448) NET CASH GENERATED FROM / (USED IN) FINANCING ACTIVITIES 7,902,009 (15,966,027) 1,340,952 556,899 4,544,358 20,510,385 2,624,631 2,067,732 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 12,446,367 4,544,358 3,965,583 2,624,631 CASH AND CASH EQUIVALENTS AT 1 JULY CASH AND CASH EQUIVALENTS AT 30 JUNE 72 Certain amount are not comparable to the prior year financial statements as they were reclassified to conform with the current year’s presentation. The notes on pages 73 to 126 form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies, which have been applied consistently, is set out below. (a) Statement of compliance and basis of preparation The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (“IASB”) and complied with the Companies Act 2001 and Financial Reporting Act 2004. The consolidated financial statements are prepared under the historical cost convention, except for: (i) Land and buildings, which are carried at revalued amounts; (ii) Investment properties, which are stated at their fair value; and (iii) Available-for-sale securities, which are stated at their fair value; (iv) Financial assets at fair value through profit or loss, which are stated at their fair value. The consolidated and separate financial statements are presented in Mauritian Rupees and all values are rounded to the nearest thousand (Rs’000) except where otherwise indicated. The consolidated financial statements provide comparative information in respect of the previous period. In addition, the Group presents an additional statement of financial position at the beginning of the earliest period presented when there is a retrospective restatement. An additional statement of financial position as at 1 July 2015 is presented in these consolidated financial statements due to the correction of an error retrospectively. (b) Basis of Consolidation The consolidated financial statements comprise the financial statements of RHT Holding Ltd and its subsidiaries as at 30 June 2017. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) • Exposure, or rights, to variable returns from its involvement with the investee, and • The ability to use its power over the investee to affect its returns When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement with the other vote holders of the investee • Rights arising from other contractual arrangements • The Group’s voting rights and potential voting rights When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights RHT Holding Ltd | Annual Report 2017 | Leadership through innovation are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: • the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; • potential voting rights held by the Company, other vote holders or other parties; • rights arising from other contractual arrangements; and • a ny additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non- controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. 73 All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (c) Property, plant and equipment All property, plant and equipment is recorded at cost less accumulated depreciation and impairment losses. Land and buildings are subsequently shown at revalued amount, based on valuations by external independent valuers, less subsequent depreciation. All other property, plant and equipment are stated at historical cost less accumulated depreciation and impairment loss. Increases in the carrying amount arising on revaluation are credited to other comprehensive income. Decreases that offset previous increases of the same asset are charged against the revaluation reserve; all other decreases are charged to the statement of profit or loss and other comprehensive income. No depreciation is provided on freehold land. Depreciation on all other property, plant and equipment is provided on the cost of each asset or the revalued amount on a straight line basis over its estimated useful life. In the year of purchase, depreciation is calculated on a pro-rata basis. The annual depreciation rates applied are as follows: Garage and buildings Annual rates Buses 5% Other vehicles 8.33% Plant and machinery 20% Furniture, fittings and equipment 12.50% Computer equipment 10% - 33 1/3% 20% - 33 1/3% Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and losses on the disposal of property, plant and equipment are determined as the difference between the net proceeds and the carrying amount of the assets. On disposal of revalued assets, amounts in revaluation and other reserves relating to that asset are transferred to retained earnings. (d) Investment properties Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation The cost includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer, applying a valuation model recommended by the International Valuation Standards Committee. Investment properties are derecognised when either they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition. Transfers are made to or from investment property only when there is a change in use. For a transfer from investment property to owner-occupied property, the deemed cost for subsequent accounting is the cost, or fair value, less depreciation at the date of transfer. If owner-occupied property becomes an investment property, the Group accounts for such property in accordance with the policy stated under property, plant and equipment up to the date of change in use. (e) Intangible assets Intangible assets are recorded at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a straight-line basis over their estimated useful life of 5 years. The estimated useful life and amortisation method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Trading rights acquired separately in a business combination are initially recognised separately from goodwill at their fair value at the 74 acquisition date (which is regarded as cost). The estimated useful lives of 10 years are reviewed at the end of each annual reporting period, with effect of any changes in estimate being accounted for on a prospective basis.

NOTES TO THE FINANCIAL STATEMENTS RHT Holding Ltd | Annual Report 2017 | Leadership through innovation FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (e) Intangible assets (Cont’d) No intangible asset arising from research, or from the research phase of an internal project, shall be recognised. Expenditure on research, or on the research phase of an internal project, shall be recognised as an expense when it is incurred. An intangible asset arising from development, or from the development phase of an internal project, may be recognised if, and only if, all of the following criterias are met: a) It is technically feasible to complete the intangible asset so that it will be available for use or sale. b) There is a firm intention to complete the intangible asset and use or sell it. c) The ability to use or sell the intangible asset is present. d) It can be demonstrated that the intangible asset will generate probable future economic benefits. e) When the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset is present. f) When the ability to measure reliably the expenditure attributable to the intangible asset during its development is present. In-built software is categorised under “Development” and is recorded as an intangible asset at cost less accumulated amortisation and accumulated impairment losses. Derecognition of intangible assets An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised. (f) Investments in subsidiaries Separate financial statements Investments in subsidiary companies are recognised at cost less impairment. Where the recoverable amount of an investment is less than its carrying amount, the investment is written down immediately to its recoverable amount and the impairment loss is recognised as an expense in the profit or loss. On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the statement of profit or loss and other comprehensive income. (g) Investments in associates Separate financial statements An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not in control or joint control over those policies. Investments in associates are recognised at cost less impairment losses. Basis of consolidation Investments in associates are accounted for using the equity method. The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for under IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost as adjusted for post-acquisition changes in the Group’s share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate) are not recognised. Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the associate recognised at the date of acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognised immediately in the statement of profit or loss and other comprehensive income. Where a Group entity transacts with an associate of the Group, profits or losses are eliminated to the extent of the Group’s interest in 75 the relevant associate.

RHT Holding Ltd | Annual Report 2017 | Leadership through innovationNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (h) Goodwill Goodwill arising on the acquisition of a subsidiary or an investment in associate represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or investment in associate recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. The Group’s policy for goodwill arising on the acquisition of an associate is described under investments in associates above. (i) Financial instruments Financial assets and financial liabilities are recognised when a Group entity becomes a party to the contractual provisions of the instrument. Financial instruments are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. Subsequent to initial recognition, these instruments are measured as set out below: (i) Financial assets Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’ (FVTPL), ‘available-for-sale’ (AFS) financial assets and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. (a) Available-for-sale (AFS) financial assets Listed shares held by the Group that are traded in an active market are classified as being AFS and are stated at fair value. Fair value gains or losses on Available for sale investments are recognised in Other Comprehensive Income in the investments revaluation reserve with the exception of impairment losses, interest calculated using the effective interest rate method and foreign exchange gains and losses on monetary assets, which are recognised directly in statements of profit or loss and other comprehensive income. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in the investments revaluation reserve is included in statement of profit or loss and other comprehensive income for the period. AFS equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost less any identified impairment losses at the end of each reporting period. D ividend on AFS equity instruments are recognised in the statement of the profit or loss and other comprehensive income when the Group’s right to receive the dividends is established. (b) Financial assets at fair value through profit or loss (FVTPL) Financial assets are classified as at FVTPL where the financial assets are either held for trading or are designated as at FVTPL. A financial asset is classified as held for trading if: • it has been acquired principally for the purpose of selling in the near future; or • it is a part of an identified portfolio of financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or • it is a derivative that is not designated and effective as a hedging instrument. 76

NOTES TO THE FINANCIAL STATEMENTS RHT Holding Ltd | Annual Report 2017 | Leadership through innovation FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (i) Financial instruments (Cont’d) (i) Financial assets (Cont’d) (b) Financial assets at fair value through profit or loss (FVTPL) (Cont’d) A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if: • s uch designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or • it forms part of a contract containing one or more embedded derivatives, and IAS 39 permits the entire combined contract (asset or liability) to be designated as at FVTPL. Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in statement of profit or loss. The net gain or loss recognised in the statement of profit or loss incorporates any dividend or interest earned on the financial asset. (c) Loan and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.   (d) Effective interest method T he effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees which are paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or, where appropriate, a shorter period. (e) Derecognition of financial assets The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. (f) Impairment of financial assets Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated cash flows of the investment have been affected. F or AFS equity investments, a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment. F or all other financial assets, objective evidence of impairment could include: • significant financial difficulty of the issuer or counterparty; or • default or delinquency in interest or principal payments; or • it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or • the disappearance of an active market for that financial asset because of financial difficulties. F or certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables 77 could include the Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period, as well as observable changes in national or local economic conditions that correlate with default on receivables.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (i) Financial instruments (Cont’d) (i) Financial assets (Cont’d) (f) Impairment of financial assets (Cont’d) For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. T he carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in statement of profit or loss and other comprehensive income. W ith the exception of AFS equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through the statement of profit or loss and other comprehensive income to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. In respect of AFS equity securities, impairment losses previously recognised through the statement of profit or loss and other comprehensive income are not reversed through statement of profit or loss and other comprehensive income. Any increase in fair value subsequent to an impairment loss is recognised directly in equity. (ii) Financial liabilities (a) Classification as debt or equity Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement. (b) Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs. (c) Financial liabilities Financial liabilities are classified as either financial liabilities at ‘FVTPL’ or ‘other liabilities’. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation (d) Other financial liabilities Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. T he effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. (e) Financial guarantee contracts A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. Financial guarantee contracts issued by a group entity are initially measured at fair values and, if not designed as at FVTPL, are subsequently measured at the higher of: 78 • the amount of the obligation under the contract, as determined in accordance with IAS 37; and • the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with revenue recognition policies. 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (i) Financial instruments (Cont’d) (ii) Financial liabilities (Cont’d) (f) Financial liabilities at FVTPL Financial liabilities are classified as at FVTPL where the financial liability is either held for trading or it is designated as at FVTPL. A financial liability is classified as held for trading if: • it has been incurred principally for the purpose of repurchasing in the near future; or • it is a part of an identified portfolio of financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or • it is a derivative that is not designated and effective as a hedging instrument. A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if: • s uch designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or • it forms part of a contract containing one or more embedded derivatives, and IAS 39 Financial Instruments: Recognition and Measurement permits the entire combined contract (asset or liability) to be designated as at FVTPL. Financial liabilities at FVTPL are stated at fair value, with any resultant gain or loss recognised in the statement of profit or loss and other comprehensive income. The net gain or loss recognised in statement of profit or loss and other comprehensive income incorporates any interest paid on the financial liability. (g) Derecognition of financial liabilities T he Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. (j) Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and are accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 79 Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (j) Taxation (Cont’d) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. For the purposes of measuring deferred tax for investment properties that are measured using the fair value model, the carrying amounts of such properties are presumed to be recovered through sale, unless the presumption is rebutted. The presumption is rebutted when the investment property is depreciable and is held within a business model whose objective is to consume substantially all the economic benefits embodied in the investment property over time, rather than through sale. The directors of the Group reviewed the Group’s investment property portfolios and concluded that none of the Group’s investment properties are held under a business model whose objective is to consume substantially all the economic benefits embodied in the investment properties over time, rather than through sale. Therefore, the directors have determined that the ‘sale’ presumption set out in the amendments to IAS 12 is not rebutted. As a result, the Group has not recognised any deferred taxes on changes in the fair value of the investment properties as the Group is not subject to any income taxes on the fair value changes of the investment properties on disposal. (k) Inventories Inventories are valued at the lower of cost and net realisable value. Cost comprises of all costs of purchase, cost of conversion and other costs incurred in bringing such inventories to their present condition and location. Cost is determined on the weighted average basis. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses. (l) Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Group as lessor Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. The Group as lessee Assets held under finance leases are recognised as assets of the Group at their value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to statement of profit or loss and other comprehensive income. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term. Depreciation on assets held under Finance Lease assets is charged in accordance with depreciation policy as detailed in Note 2(b). (m) Retirement benefit obligations Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions. (i) Employment Rights Act 2008 Employees are entitled to a gratuity which is computed based on the number of years of service. This provision is not funded and is accounted for as a Defined Benefit Obligation. The benefit accruing under this item is calculated by a qualified actuary who carries out a full valuation of the plan. The present value of retirement benefits as provided under the Employment Rights Act 2008 is recognised in the statements of financial position as a non-current liability. Actuarial gains and losses on the present value of the Group’s pension obligations and fair value of plan assets are recognised in Other Comprehensive Income. (ii) State plan and defined contribution plan 80 Contributions to the National Pension Scheme and defined contribution plan are charged to profit or loss in the year in which they fall due.

NOTES TO THE FINANCIAL STATEMENTS RHT Holding Ltd | Annual Report 2017 | Leadership through innovation FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (n) Revenue recognition Revenue for the Company represents dividend income. Dividend income from investments is recognised when the shareholder’s right to receive payment is established. Revenue for the Group comprises of income from bus fare and hire charges and the invoiced values of goods and services net of value added tax, discounts, allowances and returns, service fees and after eliminating sales within Group companies. Sale of goods Revenue from sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied. - The Group has transferred to the buyer the significant risks and rewards of ownership of the goods. - The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. - The amount of revenue can be measured reliably. - It is probable that the economic benefits associated with the transaction will flow to the Group. - The cost incurred or to be incurred in respect of the transaction can be measured reliably. Maintenance and Service fees income is recognised by reference to the terms of the agreement. Financial support from government is recognised on accrual basis. Revenue from bus fare and hire charges are recognised upon customer acceptance. Other revenue earned by the Group and the Company, representing interest revenue, is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. (o) Foreign currencies Functional and presentation currency Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements are presented in Mauritian Rupee (“Rs”), which is the Group’s functional and presentation currency. Transactions and balances In preparing the financial statements of each individual Group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise. For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Groups’ foreign operations are translated into Currency Units using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate). (p) Provisions Provisions are recognised when the Group has a present obligation as a result of past events, and it is probable that the Group will be required to settle that obligation. Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at the reporting date, and are discounted to present value where the effect is material. 81

RHT Holding Ltd | Annual Report 2017 | Leadership through innovationNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (q) Impairment At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. A long-term growth rate is calculated and applied to project future cash flows after the fifth year. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less cost to sell and value in use. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. (r) Related parties Related parties are individuals and companies where the individual or the Group has the ability directly or indirectly to control the other party or exercise significant influence over the other party in making financial and operating decisions. An entity is related to a reporting entity if the entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). Individuals include key management personnel, who are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. (s) Cash and cash equivalents Cash comprises cash at bank and in hand and demand deposits net of bank overdrafts. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Cash and cash equivalents are classified as loans and receivables and is subsequently measured at amortised cost. (t) Government grants Government grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and that the grants will be received. Government grants whose primary condition is that the company should purchase or otherwise acquire non-current assets are recognised against the carrying amount of the asset. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs are recognised in profit or loss in the period in which they become receivable. (u) Investment Income Investment income comprises of dividend income and profit or loss on disposal of investments. Dividend income is recognised when the shareholder’s right to receive payment is established. (v) Segmental reporting A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different from those of other business segments. The Group’s business segments consist of bus operating services, investing activities, rental activities, trading and provision of services for a fee. Most of its activity is performed in Mauritius and the African continent. (w) Current versus non-current classification The Company presents assets and liabilities in statement of financial position based on current/non-current classification. An asset is current when it is: - Expected to be realised or intended to sold or consumed in normal operating cycle; - Held primarily for the purpose of trading; - Expected to be realised within twelve months after the reporting period; or - Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period 82 All other assets are classified as non-current.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (w) Current versus non-current classification (Cont’d) A liability is current when: - It is expected to be settled in normal operating cycle; - It is held primarily for the purpose of trading; - It is due to be settled within twelve months after the reporting period; or - There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. (x) Sale and Leaseback A sale and leaseback transaction involves the sale of an asset and the leasing back of the same asset. The accounting treatment of a sale and leaseback transaction depends upon the type of lease involved. Where the sale and leaseback transaction results in an operating lease, and the transaction is established at fair value, any profit or loss shall be recognised immediately. If the sale price is below fair value, any profit or loss shall be recognised immediately except that, if the loss is compensated for by future lease payments at below market price, it shall be deferred and amortised in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is deferred and amortised over the period for which the asset is expected to be used. If the leaseback is an operating lease, and the lease payments and the sale price are at fair value, any profit or loss is recognised immediately. For operating leases, if the fair value at the time of a sale and leaseback transaction is less than the carrying amount of the asset, a loss equal to the amount of the difference between the carrying amount and fair value shall be recognised immediately. (y) Comparative figures Comparative figures have been regrouped or restated, where necessary, to conform to the current year’s presentation. 1.2 APPLICATION OF NEW AND REVISED STANDARDS The nature and the effect of these changes are disclosed below. Although these new standards and amendments applied for the first time in 2017, they did not have a material impact on the financial statements of the Company and the Group. The nature and the impact of each new standard or amendment is described below: Investment Entities: Applying the Consolidation Exception - Amendments to IFRS 10, IFRS 12 and IAS 28 Effective for RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Accounting for Acquisitions of interests in Joint Operations - Amendments to IFRS 11 accounting period IFRS 14 Regulatory Deferral Accounts beginning on or after Disclosure Initiative - Amendments to IAS l Clarification of Acceptable Methods of Depreciation and Amortisation - Amendments to IAS 16 and IAS 38 1 January 2016 Agriculture - Bearer Plants - Amendments to IAS 16 and IAS 41 1 January 2016 Equity Method in Separate Financial Statements - Amendments to IAS 27 1 January 2016 Annual Improvements Cycle - 2012-2014 1 January 2016 1 January 2016 1 January 2016 1 January 2016 1 January 2016 Where the adoption of the standard or interpretation or improvement is deemed to have an impact on the financial statements or performance of the Company, its impact is described below: 83

RHT Holding Ltd | Annual Report 2017 | Leadership through innovationNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1.2 APPLICATION OF NEW AND REVISED STANDARDS (CONT’D) Investment Entities: Applying the Consolidation Exception - Amendments to IFRS 10, IFRS 12 and IAS 28 - effective 1 January 2016 The amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011) was made to address issues that have arisen in the context of applying the consolidation exception for investment entities by clarifying the following points: • T he exemption from preparing consolidated financial statements for an intermediate parent entity is available to a parent entity that is a subsidiary of an investment entity, even if the investment entity measures all of its subsidiaries at fair value. • A subsidiary that provides services related to the parent’s investment activities should not be consolidated if the subsidiary itself is an investment entity. • W hen applying the equity method to an associate or a joint venture, a non-investment entity investor in an investment entity may retain the fair value measurement applied by the associate or joint venture to its interests in subsidiaries. • An investment entity measuring all of its subsidiaries at fair value provides the disclosures relating to investment entities required by IFRS 12. The amendments must be applied retrospectively. Early application is permitted and must be disclosed. The amendment does not have an impact on the Company and the Group as the Group is not an investment entity. Accounting for Acquisitions of interests in Joint Operations - Amendments to IFRS 11 - effective 1 January 2016 The amendments require an entity acquiring an interest in a joint operation, in which the activity of the joint operation constitutes a business, to apply, to the extent of its share, all of the principles in IFRS 3 and other IFRSs that do not conflict with the requirements of IFRS 11 Joint Arrangements. Furthermore, entities are required to disclose the information required by IFRS 3 and other IFRSs for business combinations. The amendments also apply to an entity on the formation of a joint operation if, and only if, an existing business is contributed by one of the parties to the joint operation on its formation. Furthermore, the amendments clarify that, for the acquisition of an additional interest in a joint operation in which the activity of the joint operation constitutes a business, previously held interests in the joint operation must not be remeasured if the joint operator retains joint control. The amendment does not have an impact on the Company and the Group. IFRS 14 Regulatory Deferral Accounts - effective 1 January 2016 IFRS 14 permits an entity which is a first-time adopter of International Financial Reporting Standards to continue to account, with some limited changes, for ‘regulatory deferral account balances’ in accordance with its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements. Early application is permitted and must be disclosed This new standard will not have an impact, as the Company and the Group is not a first time adopter of IFRS. Disclosure Initiative - Amendments to IAS l - effective 1 January 2016 Amends IAS 1 Presentation of Financial Statements to address perceived impediments to preparers exercising their judgement in presenting their financial reports by making the following changes: • clarification that information should not be obscured by aggregating or by providing immaterial information, materiality considerations apply to the all parts of the financial statements, and even when a standard requires a specific disclosure, materiality considerations do apply; • c larification that the list of line items to be presented in these statements can be disaggregated and aggregated as relevant and additional guidance on subtotals in these statements and clarification that an entity’s share of OCI of equity-accounted associates and joint ventures should be presented in aggregate as single line items based on whether or not it will subsequently be reclassified to profit or loss; and 84 • additional examples of possible ways of ordering the notes to clarify that understandability and comparability should be considered when determining the order of the notes and to demonstrate that the notes need not be presented in the order so far listed in paragraph 114 of IAS 1. The above amendments did not have an impact on the financial position or performance of the Company and the Group.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1.2 APPLICATION OF NEW AND REVISED STANDARDS (CONT’D) Clarification of Acceptable Methods of Depreciation and Amortisation - Amendments to IAS 16 and IAS 38 - effective 1 January 2016 The amendments clarify the principle in IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets that revenue reflects a pattern of economic benefits that are generated from operating a business (of which the asset is part) rather than the economic benefits that are consumed through use of the asset. As a result, the ratio of revenue generated to total revenue expected to be generated cannot be used to depreciate property, plant and equipment and may only be used in very limited circumstances to amortise intangible assets. The amendments are applied prospectively and did not have any impact on the Company and the Group given that it has not used a revenue-based method to depreciate its non-current assets. Agriculture - Bearer Plants - Amendments to IAS 16 and IAS 41 - effective 1 January 2016 The amendments to IAS 16 and IAS 41 Agriculture change the scope of IAS 16 to include biological asset that meet the definition of bearer plants (e.g., fruit trees). As a result of the amendments, bearer plants will be subject to all the recognition and measurement requirements in IAS 16, including the choice between the cost model and revaluation model for subsequent measurement. Agricultural produce growing on bearer plants (e.g., fruit growing on a tree) will remain within the scope of IAS 41. In addition, government grant relating to bearer plants will be accounted for in accordance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, instead of IAS 41. Entities may apply the amendments on a fully retrospective basis. Alternatively, an entity may choose to measure a bearer plant at its fair value at the beginning of the earliest period presented. Early application is permitted and must be disclosed. These amendments do not have an impact on the Group and Company as neither have bearer plants. Amendments to IAS 27: Equity Method in Separate Financial Statements - effective 1 January 2016 The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. Entities already applying IFRS and electing to change to the equity method in its separate financial statements will have to apply that change retrospectively. The amendments to IAS 27 Separate Financial Statements allow an entity to use the equity method as described in IAS 28 to account for its investments in subsidiaries, joint ventures and associates in its separate financial statements. Therefore, an entity must account for these investments either: • At cost; • In accordance with IFRS 9 (or IAS 39); Or • Using the equity method The entity must apply the same accounting for each category of investment. The amendments must be applied retrospectively. Early application is permitted and must be disclosed. The Company has investments RHT Holding Ltd | Annual Report 2017 | Leadership through innovation in associates which were fully impaired during the year, hence these amendments did not have any impact on the Group’s consolidated financial statements. Annual IFRS Improvements Process Effective for accounting period beginning on or after IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Changes in methods of disposal 1 January 2016 IFRS 7 Financial Instruments: Disclosures - Servicing contracts 1 January 2016 IFRS 7 Financial instruments: Disclosures - Applicability of the offsetting disclosures to condensed interim financial statements 1 January 2016 IAS 19 Employee Benefits - Discount rate: regional market Issue 1 January 2016 IAS 34 Interim Financial Reporting - Disclosure of information ‘elsewhere in the interim financial report’ 1 January 2016 85

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1.2 APPLICATION OF NEW AND REVISED STANDARDS (CONT’D) IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Changes in methods of disposal Assets (or disposal groups) are generally disposed of either through sale or distribution to owners. The amendment clarifies that changing from one of these disposal methods to the other would not be considered a new plan of disposal, rather it is a continuation of the original plan. There is, therefore, no interruption of the application of the requirements in IFRS 5. The amendment must be applied prospectively and did not have an impact on the financial position or performance of the Group and Company. IFRS 7 Financial Instruments: Disclosures - Servicing contracts The amendment clarifies that a servicing contract that includes a fee can constitute continuing involvement in a financial asset. An entity must assess the nature of the fee and the arrangement against the guidance for continuing involvement in IFRS 7.830 and IFRS 7.42C in order to assess whether the disclosures are required. The assessment of which servicing contracts constitute continuing involvement must be done retrospectively. However, the required disclosures would not need to be provided for any period beginning before the annual period in which the entity first applies the amendment. This amendment did not have an impact on the financial position and financial performance of the Company and the Group under IFRS 7. IFRS7 Financial instruments: Disclosures - Applicability of the offsetting disclosures to condensed interim financial statements The amendment clarifies that the offsetting disclosure requirements do not apply to condensed interim financial statements, unless such disclosures provide a significant update to the information reported in the most recent annual report. The amendments must be applied retrospectively and did not have an impact on the financial position or performance of the Group and Company. IAS 19 Employee Benefits - Discount rate: regional market Issue The amendment clarifies that market depth of high quality corporate bonds is assessed based on the currency in which the obligation is denominated, rather than the country where the obligation is located. When there is no deep market for high quality corporate bonds in that currency, government bond rates must be used. The amendment must be applied prospectively. As the Group and the Company already use government bond rates to calculate the retirement benefits obligation, on the financial position or performance of the performance of the Group and Company. IAS 34 Interim Financial Reporting - Disclosure of information ‘elsewhere in the interim financial report’ The amendment clarifies that the required interim disclosures must be either in the interim financial statements or incorporated by cross- reference between the interim financial statements and wherever they are included within the interim financial report, for example, in the management commentary or risk reports. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation The other information within the interim financial report must be available to users on the same terms and at the same time as the interim financial statements. The amendment must be applied retrospectively and do not have an impact on the financial position or performance of the Group and Company. Relevant new and revised standards in issue not yet effective The following standards, amendments to existing standards and interpretations are in issue but not yet effective. They are mandatory for accounting periods beginning on the specified dates, but the Company and the Group have not early adopted them: IAS 7 – Disclosure Initiative – Amendments to IAS 7 1 Jan 2017 IAS 12 – recognition of deferred Tax Assets for Unrealised losses – Amendments to IAS 12 1 Jan 2017 IFRS 15 - Revenue from Contracts with Customers 1 Jan 2018 IFRS 9 - Financial Instruments 1 Jan 2018 IFRS 2 – Classification and Measurement based Payment Transactions - Amendments to IFRS 2 1 Jan 2018 Applying IFRS 9 – Financial Instruments with IFRS 4 Insurance Contracts – Amendments to IFRS 4 1 Jan 2018 Transfers of Investment Property (Amendments to IAS 40) 1 Jan 2018 IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration 1 Jan 2018 IFRS 16 – Leases 1 Jan 2019 1 Jan 2019 86 IFRIC Interpretation 23 Uncertainty over Income Tax Treatments 1 Jan 2021 Deferred IFRS 17 – Insurance Contracts Indefinitely IFRS 10 & IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures – Amendments to IFRS 10 and IAS 28.

NOTES TO THE FINANCIAL STATEMENTS RHT Holding Ltd | Annual Report 2017 | Leadership through innovation FOR THE YEAR ENDED 30 JUNE 2017 1.2 APPLICATION OF NEW AND REVISED STANDARDS (CONT’D) Disclosure Initiative (Amendments to IAS 7) The amendments to IAS 7 - Statement of Cash Flows are part of the IASB’s Disclosure Initiative and help users of financial statements better understand changes in an entity’s debt. The amendments require entities to provide disclosures about changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses). On initial application of the amendment, entities are not required to provide comparative information for preceding periods. Early application is permitted. The amendments are intended to provide information to help investors better understand changes in an entity’s debt. Management is still assessing the impact from the adoption of these new or amended standards and interpretations on the Group’s and Company’s financial statements. No early adoption is intended by the Board of directors. Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12) Amends IAS 12 Income Taxes to clarify the following aspects: • U nrealised losses on debt instruments measured at fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt instrument’s holder expects to recover the carrying amount of the debt instrument by sale or by use. • The carrying amount of an asset does not limit the estimation of probable future taxable profits. • Estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible temporary differences. • An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax law restricts the utilisation of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax assets of the same type. Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact. Early application is permitted. If an entity applies the amendments for an earlier period, it must disclose that fact. Management is still assessing the impact from the adoption of these new or amended standards and interpretations on the Group’s and Company’s financial statements. No early adoption is intended by the Board of directors IFRS 15 Revenue from Contracts with Customers - effective 1 January 2018 IFRS 15 replaces all existing revenue requirements in IFRS (IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC 31 Revenue – Barter Transactions Involving Advertising Services) and applies to all revenue arising from contracts with customers, unless the contracts are in the scope of other standards, such as IAS 17 (or IFRS 16 Leases, once applied). Its requirements also provide a model for the recognition and measurement of gains and losses on disposal of certain non-financial assets, including property, plant and equipment and intangible assets. The core principle is that an entity will recognise revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers. The five steps in the model are as follows: • Identify the contract with the customer; • Identify the performance obligations in the contract; • Determine the transaction price; • Allocate the transaction price to the performance obligations in the contracts; and • Recognise revenue when (or as) the entity satisfies a performance obligation. The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies how to account for the incremental costs of obtaining a contract and the costs directly related to fulfilling a 87 contract.

RHT Holding Ltd | Annual Report 2017 | Leadership through innovationNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1.2 APPLICATION OF NEW AND REVISED STANDARDS (CONT’D) IFRS 15 Revenue from Contracts with Customers - effective 1 January 2018 (Cont’d) Application guidance is provided in IFRS 15 to assist entities in applying its requirements to certain common arrangements, including licences of intellectual property, warranties, rights of return, principal-versus-agent considerations, options for additional goods or services and breakage. Entities are required to apply these amendments retrospectively. The amendments are intended to clarify the requirements in IFRS 15, not to change the standard. Entities can choose to apply the standard using either a full retrospective approach or a modified retrospective approach, with some limited relief provided under either approach. Early application is permitted and must be disclosed. The Company and the Group are still assessing the impact of this new standard. There may be an impact on the level of disclosure provided. IFRS 9 Financial Instruments – Classification and measurement of financial assets, Accounting for financial liabilities and derecognition – 1 January 2018 IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows: Classification and measurement of financial assets All financial assets are measured at fair value on initial recognition, adjusted for transaction costs if the instrument is not accounted for at fair value through profit or loss (FVTPL). Debt instruments are subsequently measured at FVTPL, amortised cost or fair value through other comprehensive income (FVOCI), on the basis of their contractual cash flows and the business model under which the debt instruments are held. There is a fair value option (FVO) that allows financial assets on initial recognition to be designated as FVTPL if that eliminates or significantly reduces an accounting mismatch. Equity instruments are generally measured at FVTPL. However, entities have an irrevocable option on an instrument-by-instrument basis to present changes in the fair value of non-trading instruments in other comprehensive income (OCI) (without subsequent reclassification to profit or loss). Classification and measurement of financial liabilities For financial liabilities designated as FVTPL using the FVO, the amount of change in the fair value of such financial liabilities that is attributable to changes in credit risk must be presented in OCI. The remainder of the change in fair value is presented in profit or loss, unless presentation of the fair value change in respect of the liability’s credit risk in OCI would create or enlarge an accounting mismatch in profit or loss. All other IAS 39 Financial Instruments: Recognition and Measurement classification and measurement requirements for financial liabilities have been carried forward into IFRS 9, including the embedded derivative separation rules and the criteria for using the FVO. Impairment The impairment requirements are based on an expected credit loss (ECL) model that replaces the IAS 39 incurred loss model. The ECL model applies to: debt instruments accounted for at amortised cost or at FVOCI; most loan commitments; financial guarantee contracts; contract assets under IFRS 15; and lease receivables under IAS 17 Leases. Entities are generally required to recognise either 12-months’ or lifetime ECL, depending on whether there has been a significant increase in credit risk since initial recognition (or when the commitment or guarantee was entered into). For some trade receivables, the simplified approach may be applied whereby the lifetime expected credit losses are always recognised. Hedge accounting Hedge effectiveness testing is prospective, without the 80% to 125% bright line test in IAS 39, and, depending on the hedge complexity, can be qualitative. A risk component of a financial or non-financial instrument may be designated as the hedged item if the risk component is separately identifiable and reliably measureable. The time value of an option, any forward element of a forward contract and any foreign currency basis spread, can be excluded from the designation as the hedging instrument and accounted for as costs of hedging. More designations of groups of items as the hedged item are possible, including layer designations and some net positions. The application of IFRS 9 may change the measurement and presentation of many financial instruments, depending on their contractual cash flows and business model under which they are held. The impairment requirements will generally result in earlier recognition of credit losses. The new hedging model may lead to more economic hedging strategies meeting the requirements for hedge accounting. 88 The impact of the new standard is currently being assessed.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1.2 APPLICATION OF NEW AND REVISED STANDARDS (CONT’D) Classification and Measurement of Share-based Payment Transactions — Amendments to IFRS 2 - 1 January 2018 The IASB issued amendments to IFRS 2 Share-based Payment that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. Early application is permitted. The amendments are not expected to have an impact on the financial statement of the Company and the Group. Transfers of Investment Property (Amendments to IAS 40) - 1 January 2018 The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use. Retrospective application in accordance with IAS 8 is only permitted if that is possible without the use of hindsight. Early application of the amendments is permitted and must be disclosed. The amendments are not expected to have an impact on the financial statements of the Company and the Group. IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration - 1 January 2018 The interpretation clarifies that in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine a date of the transactions for each payment or receipt of advance consideration. Entities may apply the amendments on a fully retrospective basis. Alternatively, an entity may apply the interpretation prospectively to all assets, expenses and income in its scope that are initially recognised on or after: • The beginning of the reporting period in which the entity first applies the interpretation • T he beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the interpretation. The amendments are not expected to have an impact on the financial statement of the Company. IFRS 16 Leases - effective 1 January 2019 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation The scope of IFRS 16 includes leases of all assets, with certain exceptions. A lease is defined as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. IFRS 16 requires lessees to account for all leases under a single on-balance sheet model in a similar way to finance leases under IAS 17. The standard includes two recognition exemptions for lessees - leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of- use asset. Lessees will be required to re-measure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the re-measurement of the lease liability as an adjustment to the right-of-use asset. Lessor accounting is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases. 89 A lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standards transition provisions permit certain reliefs. Early application is permitted, but not before an entity applies IFRS 15. The impact of the new standard is currently being assessed.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1.2 APPLICATION OF NEW AND REVISED STANDARDS (CONT’D) IFRIC Interpretation 23 Uncertainty over Income Tax Treatments The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12. The Interpretation does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: • Whether an entity considers uncertain tax treatments separately • The assumptions an entity makes about the examination of tax treatments by taxation authorities • How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates • How an entity considers changes in facts and circumstances An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. The impact of this interpretation is currently being assessed. IFRS 10 & IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures – Amendments to IFRS 10 and IAS 28. In December 2015, the IASB decided to defer the effective date of the amendments until such time as it has finalised any amendments that result from its research project on the equity method. Early application of the amendments is still permitted. Improvement to International Financial Reporting Standards IFRS 12 – Disclosure of Interest in Other Entities – Clarification of the Scope of the disclosure requirements in IFRS 12 1 Jan 2017 IAS 28 – Investments in Associations and joint Ventures – Clarification that measuring investees at fair value through profit or loss is an investment – by – investment choice. 1 Jan 2018 The IASB’s annual improvements process deals with non-urgent, but necessary, clarifications and amendments to IFRS. IFRS 12 Disclosure of Interests in Other Entities – Clarification of the scope of the disclosure requirements in IFRS 12 - 1 January 2017 The amendments clarify that the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale. The amendments are effective from 1 January 2017 and must be applied retrospectively. The Company and the Group shall assess the impact of the above amendment on its financial statements. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation IFRS 1 First-time Adoption of International Financial Reporting Standards - Deletion of short-term exemptions for first-time adopters - 1 January 2018 Short-term exemptions in paragraphs E3–E7 of IFRS 1 were deleted because they have now served their intended purpose. IAS 28 Investments in Associates and Joint Ventures – Clarification that measuring investees at fair value through profit or loss is an investment - by - investment choice - 1 January 2018 The amendments clarifies that: An entity that is a venture capital organisation, or other qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to measure its investments in associates and joint ventures at fair value through profit or loss. If an entity that is not itself an investment entity has an interest in an associate or joint venture that is an investment entity, the entity may, when applying the equity method, elect to retain the fair value measurement applied by that investment entity associate or joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made separately for each investment entity associate or joint venture, at the later of the date on which (a) the investment entity associate or joint venture is initially recognised; (b) the associate or joint venture becomes an investment entity; and (c) the investment entity associate or joint venture first becomes a parent. 90 The amendments should be applied retrospectively and are effective from 1 January 2018, with earlier application permitted. If an entity applies those amendments for an earlier period, it must disclose that fact. This amendment will have no impact on the Company and the Group as they are not investment entities.

NOTES TO THE FINANCIAL STATEMENTS RHT Holding Ltd | Annual Report 2017 | Leadership through innovation FOR THE YEAR ENDED 30 JUNE 2017 2. ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of financial statements in accordance with IFRS requires the directors and management to exercise judgement in the process of applying the accounting policies. It also requires the use of accounting estimates and assumptions that may affect the reported amounts and disclosures in the financial statements. Judgements and estimates are continuously evaluated and are based on historical experience and other factors, including expectations and assumptions concerning future events that are believed to be reasonable under the circumstances. The actual results could, by definition therefore, often differ from the related accounting estimates. In the application of the Group’s accounting policies, which are described in note 2, the directors of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Critical judgements in applying accounting policies The following are the critical judgements, apart from those involving estimations, that the directors have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in the consolidated financial statements. Deferred taxation on investment properties For the purposes of measuring deferred tax liabilities and deferred tax assets arising from investment properties that are measured using fair value model, the directors have reviewed the Group’s investment property portfolios and concluded that the Group’s investment properties are not held under a business model whose objective is to consume substantially all the economic benefits embodied in the investment properties over time, rather than through sale. Therefore, in determining the Group’s deferred taxation on investment properties, the directors have determined that the presumption that the carrying amounts of investment properties measured using the fair value model are recovered entirely through sale is not rebutted. As a result, the Group has not recognised any deferred taxes on changes in fair value of investment properties as the Group is not subject to any income taxes on fair value changes of the investment properties on disposal. Key sources of estimation uncertainty The key sources assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. Fair valuation of financial instruments When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be derived from active markets, their fair value is determined using a variety of valuation techniques that include the use of valuation models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, estimation is required in establishing fair values. The estimates include a measure of the dividend yield and unadjusted net asset values. Changes in assumptions about these factors could affect the reported fair value of financial instruments in the statement of financial position and the level where the instruments are disclosed in the fair value hierarchy. To assess the significance of a particular input to the entire measurement, the Group performs sensitivity analysis or stress testing techniques as disclosed in note 31 of the financial statements. Impairment of goodwill Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash- generating units and a suitable discount rate in order to calculate present value, as described in note 6 of the financial statements. Property, plant and equipment The cost of the property, plant and equipment is depreciated over the estimated useful life of the asset. The estimated useful life is based on expected usage of the asset and expected physical wear and tear, which depends on operational factors. Management performs a technical assessment and evaluation of the useful life and residual value of buses on an annual basis. Management has not considered any residual value for buses as it is deemed immaterial. 91

RHT Holding Ltd | Annual Report 2017 | Leadership through innovationNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 2. ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONT’D) Key sources of estimation uncertainty (Cont’d) Allowance for doubtful debts An allowance for doubtful debts is determined using a combination of factors to ensure that the trade receivables are not overstated due to uncollectability. The allowance for doubtful debts for all customers is based on a variety of factors, including the overall quality and ageing of the receivables and continuing credit evaluation of the customer’s financial conditions. Also, specific provisions for individual accounts are recorded when the management becomes aware of the customer’s inability to meet its financial obligations such as in the case of deterioration in the customer’s operating results or financial position. Refer to note 12 for further information. Investment properties Investment property has been valued based on directors’ estimate with reference to their knowledge on the current market evidence of transaction prices for similar properties and with the valuer’s report. The actual results could differ from their estimates as management uses an average of the most recent transaction prices, or, depending on the location, the exact transaction price of a similar property which has recently traded on the market in the vicinity of the subject property being valued. Note 5 provides further details on the revaluation method. Retirement benefit obligations Retirement benefit obligations has been valued by actuaries based on accounting estimates in respect of inter-alia, discount rate, future salary increases, and average retirement age. Due to the long term nature of the plan, such estimates are subject to significant uncertainty. All assumptions are reviewed at each reporting date. Management consider that the actuary has used its best estimates to value the retirement benefit obligation provisions and note 16 provides further information on same. Allowance for slow moving stock An allowance for slow moving stock is determined using a combination of factors including the overall quality and ageing of the stocks. The allowance is also determined by all items for which there have been no use or sale during the financial year. Where management forecast, which are based on the use of the inventory items and changes in market trends, reflect no future use or saleability, these items have been fully provided for. 92

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 3. CORRECTION OF PRIOR YEAR ERROR The investment properties are held by RHT Properties Ltd, a subsidiary of the Company and is rented out to different subsidiaries of the Group and the holding company. This is owner occupied from a Group perspective and have to be reclassified as an item of Property, plant and equipment in the Group’s financial statements on consolidation. This reclassification requires the reversal of cumulative fair value movements on the investment property occupied by the Group and the recognition of accumulated depreciation calculated on the historical cost of the owner occupied portion. Whilst the reclassification was done over the years, the amount reclassified had been incorrectly assessed. A restatement of the prior year figures has been made to reflect the reclassification of the investment property to Property, plant and equipment at the correct amount. To correct the above, in accordance with the provisions of IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”, the figures were recalculated since the beginning of owner occupation and comparatives have been restated for the Group, with adjustments made to the following captions: Retained Earnings, Property, plant and equipment in the Group Statement of Financial Position and Administrative Expenses in the Group Statement of Profit or Loss and Other Comprehensive Income. There was no impact to the Company’s reported figures.  The following adjustments were made to comparatives for the Group: Statement of As previously Adjustments As As previously Adjustments As Financial Position stated 2016 restated stated 2015 restated Rs Rs Assets 2016 2016 2015 2015 Property, plant and equipment Investment Property Rs Rs Rs Rs Retained Earnings Other Reserves 169,812,699 35,800,000 205,612,699 188,389,360 35,800,000 224,189,360 Total Equity 64,400,000 (35,800,000) 28,600,000 64,400,000 (35,800,000) 28,600,000 (13,276,364) (12,976,364) 241,251,445 13,276,364 227,975,081 240,220,481 12,976,364 227,244,117 341,157,199 354,433,563 370,584,390 383,560,754 606,732,944 - 606,732,944 635,129,171 - 635,129,171 Statement of Profit or Loss As previously Adjustments As restated As previously Adjustments As and Other Comprehensive stated 2016 2016 stated 2015 restated Income Rs Rs Rs 2016 2015 2015 Profit for the year Rs Other Comprehensive Loss Rs Rs Total Comprehensive Loss 37,881,976 14,490,641 (300,000) 14,190,641 38,125,419 (243,443) (37,925,252) Statement of Changes in (30,116,611) 300,000 (29,816,611) (37,925,252) - Equity (15,625,970) (15,625,970) (43,276) - 200,167 (243,443) Retained Earnings Other Reserves 241,251,445 (13,276,364) 227,975,081 240,220,481 (12,976,364) 227,244,117 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 341,157,199 13,276,364 354,433,563 370,584,390 12,976,364 383,560,754 Statement of Cash Flows 15,488,818 (300,000) 15,188,818 45,385,594 (243,443) 45,142,151 Profit before tax 18,173,295 300,000 18,473,295 25,329,075 243,443 25,572,518 Depreciation on PPE Net increase in cash and 4,544,358 - 4,544,358 20,510,385 - 20,510,385 cash equivalents 93

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 4. PROPERTY, PLANT AND EQUIPMENT THE GROUP Freehold Garage Buses Plant Other Furniture, Computer Total land and Rs and vehicles fittings equipment Rs COST OR Rs machinery and VALUATION Buildings Rs Rs 296,299,999 At 1 July 2015 50,500,000 Rs Rs equipment 35,800,000 (as previously stated) Effect of prior year 29,800,000 12,200,000 Rs 332,099,999 adjustment (note 3) 4,304,674 At 1 July 2015 80,300,000 6,000,000 203,153,569 1,036,575 6,699,533 1,892,131 20,818,191 (restated) - (14,783,065) Additions - 18,200,000 - - - - - Disposals - - 203,153,569 1,036,575 6,699,533 1,892,131 20,818,191 - 1,019,749 - 1,032,496 2,252,429 - - (14,783,065) - - At 30 June 2016 80,300,000 18,200,000 188,370,504 2,056,324 6,699,533 2,924,627 23,070,620 321,621,608 Additions - - 30,917,691 7,630,028 444,424 139,000 3,355,213 42,486,356 Disposals - - (13,695,653) - (542,497) (16,544,044) Transfer (note (a)) - - (26,202,560) - (2,305,894) - - (26,202,560) Scrapped - - (1,094,679) - - - - (1,094,679) Revaluation - - adjustment 1,000,000 - - - - - - 1,000,000 At 30 June 2017 9,686,352 4,838,063 3,063,627 25,883,336 321,266,681 81,300,000 18,200,000 178,295,303 ACCUMULATED -- 84,423,982 967,030 5,266,289 797,394 16,455,944 107,910,639 DEPRECIATION -- -- - -- --- At 1 July 2015 - 610,000 (as previously stated) -- 84,423,982 967,030 5,266,289 797,394 16,455,944 107,910,639 - (610,000) Effect of prior year 14,222,321 64,074 506,512 572,997 2,497,391 18,473,295 adjustment (note 3) (9,765,025) - - - - (9,765,025) RHT Holding Ltd | Annual Report 2017 | Leadership through innovation At 1 July 2015 - - - - - (610,000) (restated) 88,881,278 14,542,535 1,031,104 5,772,801 1,370,391 18,953,335 116,008,909 Charge for the year (10,194,663) 1,196,104 530,049 653,869 2,750,141 19,977,698 (restated) - 50,756 (12,449,801) (357,406) - (2,305,894) - - (357,406) Disposals (930,476) - - - - (930,476) - - Revaluation - adjustment 91,941,268 At 30 June 2016 -- 86,354,035 - - - - (305,000) Charge for the year - 305,000 2,227,208 3,996,956 2,024,260 21,754,232 121,943,924 Disposals -- 99,489,226 Transfer (note (a)) -- Scrapped -- Revaluation adjustment - (305,000) At 30 June 2017 - - 18,200,000 CARRYING AMOUNT 18,200,000 At 30 June 2017 81,300,000 7,459,144 841,107 1,039,367 4,129,104 199,322,757 1,025,220 926,732 1,554,236 4,117,285 205,612,699 At 30 June 2016 80,300,000 (restated) Please refer to Note 3 for the effect of a prior year restatement on Property, Plant and Equipment. 94 (a) The transfer is in respect of buses initially acquired by cash during the year and thereafter sold to Finlease Company Ltd. The transaction was then immediately restructured as an Operating Lease Arrangement with Finlease Company Ltd itself, with the Company as the lessee, at the end of 30 June 2017. In principle, this transaction is similar to a sale and leaseback arrangement.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 4. PROPERTY, PLANT AND EQUIPMENT (CONT’D) THE GROUP Fair value measurement of the Group’s freehold land and buildings The fair value of the Group’s land and buildings at 30 June 2017 has been arrived at on the basis of a valuation carried out by Messrs NP Jeetun Chartered Valuation Surveyors, independent valuers not related to the Group. The fair value has been determined by the comparative method. The comparative method is based on comparison of prices paid of similar properties within close vicinity of the site and adjusted to reflect the characteristics of the subject property, at the relevant date. Messrs NP Jeetun Chartered Valuation Surveyors have appropriate qualifications and recent experience in the valuation of properties in the relevant locations. The basis of valuation in estimating the open market values have been effected in accordance with the principles set out by the International Valuation Standards Committee as per the International Valuation Application 1 (IVA 1) which deals with valuation for financial reporting and which is to be used in the context of International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB). Details of the Group’s freehold land and garage and buildings and information about the fair value hierarchy is classified under level 2 as at 30 June 2017 and 2016. There has been no transfers between levels 1 and 2 during the year. If freehold land and garage and buildings were stated at historical cost, the carrying amounts would have been as follows: THE GROUP 2017 2016 Rs Rs Net book value 67,605,638 68,442,082 (i) Borrowings are secured by fixed and floating charges on the buses and freehold land of the Group. (ii) Leased assets in the Group financial statements included above comprise of buses, computer equipment and other vehicles as follows: 2017 Buses Vehicles Total Rs Rs Rs Cost - Capitalised finance leases Accumulated depreciation 14,333,844 3,543,636 17,877,480 At 30 June 2017 (2,966,268) (3,080,918) (6,047,186) 11,367,576 462,718 11,830,294 2016 14,333,844 3,543,636 17,877,480 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Cost - Capitalised finance leases (1,483,134) (2,616,905) (4,100,039) Accumulated depreciation At 30 June 2016 12,850,710 926,731 13,777,441 The Group did not enter into any new Finance Lease arrangement during the year. (iii) Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default. (iv) Additions for the year are made up of the following: Acquired by cash 2017 2016 Rs Rs 42,486,356 4,304,674 95

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 5. INVESTMENT PROPERTIES Fair value 2017 THE GROUP 2015 Rs 2016 Rs At 1 July Rs Additions 28,500,000 Restated Disposal 45,085,200 Restated Net loss on revaluation of investment properties 28,600,000 At 30 June - 28,600,000 - (585,200) - - 73,000,000 - (100,000) - 28,600,000 28,500,000 The fair value of the Group’s investment properties at 30 June 2017 has been arrived at on the basis of a valuation carried out by Messrs NP Jeetun Chartered Valuation Surveyors, independent valuers not related to the Group. The fair value has been determined by the comparative method. The comparative method is based on comparison of prices paid of similar properties within close vicinity of the site and adjusted to reflect the characteristics of the subject property, at the relevant date. Messrs NP Jeetun Chartered Valuation Surveyors have appropriate qualifications and recent experience in the valuation of properties in the relevant locations. The basis of valuation in estimating the open market values have been effected in accordance with the principles set out by the International Valuation Standards Committee as per the International Valuation Application 1 (IVA 1) which deals with valuation for financial reporting and which is to be used in the context of International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB). Freehold land 2017 THE GROUP 2015 Buildings Rs 2016 Rs Rs 72,275,000 Restated 725,000 Restated 28,600,000 73,000,000 28,500,000 - - 28,600,000 28,500,000 Details of the Group’s investment properties and information about the fair value hierarchy is classified under level 2 as at 30 June 2017. There has been no transfers between levels 1 and 2 during the year. The investment properties have been pledged to secure banking facilities within RHT Group of companies. RHT Holding Ltd | Annual Report 2017 | Leadership through innovation 96

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 6. INTANGIBLE ASSETS THE GROUP In built Purchased Computer Trademarks Trading Total software goodwill software Rs rights Rs COST AND VALUATION At 1 July 2015 Rs Rs Rs Rs Additions 1,600,000 3,464,364 3,454,613 28,571 4,000,000 12,547,548 - - 511,551 - - 511,551 At 30 June 2016 1,600,000 3,464,364 3,966,164 28,571 4,000,000 13,059,099 Additions - 266,000 117,381 - - 383,381 At 30 June 2017 1,600,000 3,730,364 4,083,545 28,571 4,000,000 13,442,480 AMORTISATION AND IMPAIRMENT 1,600,000 1,411,806 3,030,410 4,274 2,000,000 8,046,490 At 1 July 2015 - - 281,063 - 400,000 681,063 Charge for the year At 30 June 2016 1,600,000 1,411,806 3,311,473 4,274 2,400,000 8,727,553 Charge for the year - - 393,798 - 400,000 793,798 At 30 June 2017 1,600,000 1,411,806 3,705,271 4,274 2,800,000 9,521,351 CARRYING AMOUNT - 2,318,558 378,274 24,297 1,200,000 3,921,129 - 2,052,558 654,691 24,297 1,600,000 4,331,546 At 30 June 2017 At 30 June 2016 Goodwill has been allocated for impairment testing purposes to the following cash generating unit (‘’CGU’’): THE GROUP 2017 2016 Rs Rs Cash-generating-unit - Island Communications Ltd (note (a)) 2,052,558 2,052,558 Cash-generating-unit - Transport and Micropayment System Ltd (note (b)) 266,000 - 2,318,558 2,052,558 (a) T he recoverable amount of a CGU is determined based on its value-in-use. These calculations use cash flow projections based on RHT Holding Ltd | Annual Report 2017 | Leadership through innovation financial budgets approved by management covering a five year span. A terminal value has thereafter been calculated by using a growth rate of 5%. The pre-tax discount rate used in the current year approximates 15% (2016: 15%). Based on the projections, the recoverable amount of the CGU are higher than their respective carrying amounts. (b) Transport and Micropayment System Ltd (formerly known as Algorithmix Co. Ltd and hereinafter referred to as TMSL), is an entity incorporated in Mauritius and holding a Payment Intermediary Service Licence with the Financial Services Commission. Its activities is to act as an online platform to accept various forms of electronic payments in Mauritius by trading in pre-paid electronic cards called “Etoile Cards”, which can be used on Public Transport vehicles as a means of payment in lieu of cash payment. The remaining 50% stake in the Company, which was previously an associate, was acquired on 25 November 2016 for a consideration of MUR 266,000. As the net fair value of the assets of the entity was nil, the entire amount was recognised as Goodwill. After 30 June 2017, TMSL merged with Transport and Micropayment Systems 1 Ltd (“TMSL 1”), a Company incorporated to complement the activities and licence of TMSL. TMSL 1 owns an electronic machine on which the aforementioned Etoile Cards are swiped on public transport vehicles. This device is currently being utilised on the buses of the Group, operating under RHT Bus Services Ltd. In that respect, based on cash flow projections made using financial budgets and approved by management covering a five year span, management believes that the recoverable amount of this CGU are higher than their respective carrying amounts. (c) T he Group performs impairment test on goodwill on an annual basis or more frequently, if there are indications that goodwill might be impaired. The Directors have reviewed the carrying value of the goodwill and are of opinion that at year end, the carrying value has not suffered any impairment loss (2016: nil) by virtue of the above fact whereby recoverable amount is higher than carrying amount. No reasonable change in the assumptions used would cause the recoverable amount to fall below the carrying amount. 97

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 7. INVESTMENT IN SUBSIDIARIES THE COMPANY 2017 2016 Rs Rs Unquoted at cost 476,624,066 476,624,066 At 30 June Investment in subsidiaries is stated at cost less impairment. The directors are of opinion that at the reporting date, the investments are not impaired. The names of the subsidiaries and their effective percentage shareholding are as follows: Shareholding Type of Class of Name of Company holding shares held Principal activity 2017 2016 % % RHT Bus Services Ltd Direct Ordinary Bus transport industry 100 100 RHT Ventures Ltd Direct Ordinary Investment holding 100 100 RHT Properties Ltd Direct Ordinary Estate properties 100 100 RHT Investments Ltd Direct Ordinary Investment holding 100 100 RHT Fund Management Ltd Direct Ordinary Management company - Non trading 100 100 Island Communications Ltd Indirect Ordinary Information technology 100 100 RHT Systems India Private Limited Indirect Ordinary Information technology 100 100 mychauffeur Ltd Indirect Ordinary Chauffeur services 100 100 Transport and Micropayment System 1 Ltd * Indirect Ordinary Information technology 100 100 Fleet Pro Services Ltd Indirect Ordinary Maintenance and servicing of vehicles 100 100 Advance Institute of Motoring Ltd Indirect Ordinary Motoring training 100 100 Hugnin Property Development Ltd Indirect Ordinary Estate properties 100 Transport and Micropayment System Ltd ** Indirect Ordinary Trading of Etoile Cards 100 - ICL Zambia Ltd Indirect Ordinary Information technology 100 - - * Transport and Micropayment System 1 Ltd was formerly known as Transport and Micropayment System Ltd. ** Transport and Micropayment System Ltd was formerly known as Algorithmix Co Ltd. The subsidiary Companies are incorporated and carry activities in Mauritius except for two subsidiaries, namely, RHT Systems India Private Limited and ICL Zambia Ltd, which are incorporated in India and Zambia respectively. All the subsidiary Companies have a June RHT Holding Ltd | Annual Report 2017 | Leadership through innovation year end. ICL Zambia Ltd was incorporated during the year. During the financial year, through its subsidiary, RHT Ventures Ltd, the Group acquired the remaining 50% stake in Algorithmix Co Ltd to effectively obtain control for net proceeds of Rs 266,000. This represents goodwill on acquisition. RHT Properties Ltd set up a new subsidiary, Hugnin Property Development Ltd, during the financial year. Post year end, 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. Through its subsidiary RHT Investments Ltd, the investments in securities have been pledged to secure banking facilities of RHT Group of Companies. Financial guarantee The Company has provided financial guarantee as is necessary to enable its subsidiaries, namely RHT Ventures Ltd, Algorithmix Co Ltd, Advance Institute of Motoring and Transport and Micropayment Systems Ltd to continue to trade in the foreseeable future and to allow them to meet their liabilities as they become due. 98

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 8. INVESTMENT IN ASSOCIATES THE GROUP 2017 2016 At 30 June Rs Rs - - (i) Investments in associates have been fully impaired since prior years. The results of the associate that is not individually material is listed below: Effective Group shareholding Name of company Activity Type of Description 2017 2016 Advertising on digital screen holding Ordinary shares % % Showbizz Entertainment Ltd Transport and Micropayment System Ltd Indirect 50 50 (formerly known as Algorithmix Co Ltd) Trading of Etoile Cards Indirect Ordinary shares - 50 Refer to Note 7 for the explanation on the acquisition of the remaining stake in Transport and Micropayment System Ltd (formerly known as Algorithmix Co Ltd) and its subsequent amalgamation post year end. (ii) T he summarised financial information in respect of the associate that is not material is set out below. The summarised financial information below represents amount shown in the associate financial statements as at 30 June 2017 as prepared in accordance with IFRSs. Non current assets 2017 2016 RHT Holding Ltd | Annual Report 2017 | Leadership through innovation Current assets Rs Rs Non current liabilities - - Current liabilities 544,397 Unrecognised cumulative share of losses in the associate - 1,300,267 Revenue - Loss for the year (19,836,179) Other comprehensive income (9,645,891) (24,954,879) Group’s share of associates loss - (11,827,306) Dividend received from associates (65,483) Unrecognised cumulative share of losses in the associate - 10,368 (32,742) (72,373) - - - (36,187) - (331,272) 99