Notes to the financial statements l Note 15

Company           Group  
2017
Rm’s
  2016
Rm’s
          2017 
Rm’s 
  2016 
Rm’s 
 
          15. INVESTMENTS          
          15.1 Investments          
            Unlisted          
8   8       Investment in subsidiaries          
85   74       Equity instruments – at cost          
125   125       Preference shares          
218   207       Directors’ valuation of unlisted investments          
            Investments in subsidiaries are carried at cost less accumulated impairment. A list of subsidiaries appears in note 38.          
            Equity instruments in the Companyís records relates to the notional investment cost as a result of the Group share-based payment schemes as disclosed in note 6.          
            Unlisted equity instruments relate to additional investments in subsidiaries in terms of the Groupís share incentive schemes. These amounts are carried at cost less accumulated impairment.          
          15.2 Investment in associates          
            Ezee Tile          
            During the 2011 financial year, the Group began accounting for an existing investment in Ezee Tile, a national manufacturer of adhesive, grout and related products, in accordance with the equity accounting requirements of IAS 28 Ė Investments in Associates. The Group holds an effective 46% stake in the Ezee Tile group.          
            Carrying value of investment in the Ezee Tile group:          
            Cost   19    19   
            Share of profit and reserve movements post commencement of equity accounting (net of dividends)   40    30   
            Share of profits   52    38   
            Dividends received   (12)   (8)  
                59    49   
            Ceramic Industries (Pty) Ltd          
            During the 2013 financial year, the Group acquired a 20% stake in Ceramic Industries (Pty) Ltd, a national manufacturer of tiles and sanitaryware, at a cost of R529 million. This investment is accounted for as an associate in terms of IAS 28, as management is of the opinion that by virtue of the supply relationship, significant influence exists.          
            Carrying value of Investment in Ceramic Industries (Pty) Ltd:          
            Cost   529    529   
            Share of profit and reserve movements post commencement of equity accounting (net of dividends)   123    76   
            Share of profits   248    167   
            Reserve movements     13   
            Dividends received   (131)   (104)  
                652    605   
            SER-Export s.p.a.          
            During the 2015 financial year, the Group disposed of a 20% stake in SER-Export s.p.a. to its existing partner in this entity, reducing the Groupís effective shareholding to 30% (refer to note 37).          
            Carrying value of investment in SER-Export s.p.a.:          
            Cost   19    19   
            Share of profit and reserve movements post commencement of equity accounting (net of dividends)      
            Share of profits      
                21    20   
            Total carrying amount of investments in associates   732    674   
            The following tables illustrate the summarised financial information of the Groupís investment in the Ezee Tile group, Ceramic Industries (Pty) Ltd and SER-Export s.p.a.:          
            Statement of financial position:          
            Non-current assets   1 554    1 345   
            Current assets   1 259    1 275   
            Non-current liabilities   (83)   (72)  
            Current liabilities   (477)   (517)  
            Equity   2 253    2 031   
            Statement of comprehensive income:          
            Turnover   3 744    3 492   
            Profit for the year   445    454   
            Profit attributable to ordinary shareholders of Italtile Limited   96    96   
            Reserve movements attributable to ordinary shareholders of Italtile Limited   (7)    
            Less: Dividends   (32)   (21)  
            Share of associated companies’ income   57    83   

Notes to the financial statements l Note 15