About BancABC ABC Holdings Limited is the parent company of a number of banks operating under the BancABC brand in Sub-Saharan
1 Salient points › Totalincomeincreased10%to BWP392 million › Balancesheetgrew11%to BWP4.4 billion › S olid income growth
2 ABCHoldingsLimitedAnnualReport2009 Five-year financial highlights on a historical cost basis in US$’000s 31Dec09 US$’000s Inc
3 Salient features 2009 Incomestatement(BWP’000s) Profit attributable to ordinary shareholders Balancesheet(BWP’000s) Total ass
4 ABCHoldingsLimitedAnnualReport2009 Chairman’s statement The Group withstood the worst of the challenges brought about by the
5 economy. Of particular note is the development of strong cooperation between the BRIC countries and Africa, with an increasin
6 ABCHoldingsLimitedAnnualReport2009 › Chairman’sstatement continued inflation is likely to deviate from the central bank’s tar
7 Rand appreciated substantially against the US$ by 21%, while the Botswana Pula appreciated by 11.3% and the Zambian Kwacha by
8 ABCHoldingsLimitedAnnualReport2009 › Chairman’sstatement continued Review of regulatory environment Prudential capital contro
9 Chief Executive Officer’s report Financial performance in 2009 was sound across all BancABC’s operations, with the exception
10 ABCHoldingsLimitedAnnualReport2009 › ChiefExecutiveOfficer’sreport continued The past year was characterised by challenging
11 of BWP30 million relating to a property construction project, in which BancABC Zambia Asset Management was an advisor. The p
12 ABCHoldingsLimitedAnnualReport2009 › ChiefExecutiveOfficer’sreport continued Attributable profit by operation Management del
13 customers. Impairment of loans and advances were BWP13 million. Lending in the first half of the year was constrained as the
14 ABCHoldingsLimitedAnnualReport2009 › ChiefExecutiveOfficer’sreport continued Non-interest income increased to BWP58 million
15 have prepared their individual scorecards based on their line of business and country scorecards. In the first half of 2010
16 ABCHoldingsLimitedAnnualReport2009 › ChiefExecutiveOfficer’sreport continued The Legal and Compliance department also intend
17 Corporate social responsibility report Socialandenvironmentalpolicy BancABC recognises, that sustainable development is depe
18 ABCHoldingsLimitedAnnualReport2009 › Corporatesocialresponsibilityreport continued Corporate Social Investment (CSI) BancABC
19 Risk and governance report Risk management The directorate and management of ABC Holdings recognise that effective risk mana
20 ABCHoldingsLimitedAnnualReport2009 › Riskandgovernancereport continued Approach to risk management The Board recognises that
21 ALCO reviews a stress mismatch report monthly, which simulates stress scenarios based on the current asset and liability str
22 ABCHoldingsLimitedAnnualReport2009 › Riskandgovernancereport continued Internal audit operates under terms of reference appr
23 EXCO also considers non-remuneration aspects of human resources management such as succession planning and skills developmen
24 ABC Holdings Limited Annual Report 2009 Directors and Group management Oliver M Chidawu (Zimbabwean) Board Chairman Oliver C
25 Ngoni Kudenga (Zimbabwean) Board Member Ngoni Kudenga was born in Zimbabwe in 1952. He holds a Bachelor of Accountancy degre
26 ABCHoldingsLimitedAnnualReport2009 › DirectorsandGroupmanagement continued Francis Dzanya Chief Operating Officer Francis Dz
27 Directors’ responsibility Responsibility for the annual financial statements The directors are responsible for the preparati
28 ABC Holdings Limited›Annual›Report›2009 Directors’ report Nature of business ABC Holdings Limited (“the Company”) is listed
29 Annual financial statements Independent auditor’s report Significant accounting policies Financial risk management Consolida
30 ABC Holdings Limited›Annual›Report›2009 Independent auditor’s report › PricewaterhouseCoopers Plot 50371 Fairground Office P
31 Significant accounting policies for the year ended 31 December 2009 Reporting entity ABC Holdings Limited (the “Company”) is
32 ABC Holdings Limited›Annual›Report›2009› › Significant accounting policies continued The preparation of consolidated financi
33 ›› Fair›value›of›derivatives The fair value of financial instruments that are not quoted in active markets is determined by
34 ABC Holdings Limited›Annual›Report›2009› › Significant accounting policies continued reserves. The cumulative post-acquisiti
35 can be made. If there is a possible obligation or outflow of resources from the Group or where a reliable estimate is not av
36 ABC Holdings Limited›Annual›Report›2009› › Significant accounting policies continued available-for-sale. Held-to-maturity fi
37 agreed cash flows, taking into account credit quality, liquidity and costs. Impairment of financial assets a)› Assets›carrie
38 ABC Holdings Limited›Annual›Report›2009› › Significant accounting policies continued losses recognised in the income stateme
39 d)› D › erivatives›that›do›not›qualify›for›› hedge›accounting Certain derivative instruments do not qualify for hedge accoun
40 ABC Holdings Limited›Annual›Report›2009› › Significant accounting policies continued The assets’ residual values, depreciati
41 Repurchase›of›share›capital Shares repurchased by Group companies are classified as treasury shares, and held at cost. These
42 ABC Holdings Limited›Annual›Report›2009› › Significant accounting policies continued investment allowances on assets leased
43 Financial risk management The Group’s activities expose it to a variety of financial risks and those activities involve the
44 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Group’s internal rating scale Category Perfor
45 than the total unused commitments, as most commitments to extend credit are contingent upon customers maintaining specific c
46 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Maximum exposure to credit risk before collat
47 Nature of security held The nature of security held ranges from cash security, assets financed, bonds over residential and c
48 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued b)› Loans›and›advances›past›due›but›not›impai
49 d)› Loans›and›advances›renegotiated› Restructuring activities include extended payment arrangements, approved external manag
50 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued 2008 BWP’000s Placements with other banks Fin
51 Mining – 36,188 – 284,632 – – – 320,820 Financial services 847,993 708,533 6,965 135,211 34,832 68,943 – 1,802,477 Transport
52 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Market risk The Group takes on exposure to ma
53 TZS 120,967 68,968 – – 209,319 8,761 27,682 – 4,415 2,281 – 850 518 443,761 354,845 26,445 8,392 1,257 – 2,007 392,946 50,81
54 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Concentration of currency risk: on and off ba
55 ZWD (7,228) 150 26,100 – 18,990 – 1,321 – 22,945 122,365 45,232 – – 229,875 35,847 – (1,198) 2,061 38,875 – 75,585 154,290 –
56 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Interest›rate›risk Cash flow interest rate ri
57 Interest›rate›sensitivity›analysis The tables below illustrate the impact of a possible 50 basis points interest rate moveme
58 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Liquidity risk Liquidity risk is the risk tha
59 2008 BWP’000s Cash and short-term funds Financial assets held for trading Financial assets designated at fair value Derivati
60 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Funding›approach Sources of liquidity are reg
61 Assets›and›liabilities›measured›at›fair›value Effective 1 January 2009, the Group adopted the amendments to IFRS 7 for finan
62 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued The investment securities comprise of unliste
63 iv)› Deposits›and›borrowed›funds The estimated fair value of deposits with no stated maturity, which includes non-interest-b
64 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Capital management The Group’s objectives whe
65 2008 BWP’000s Tier I capital Share capital and premium Capital reserves and retained earnings Allocation for market and oper
66 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued Segment analysis By›geographical›segment The
67 The segment information provided to the Group Executive Committee for the reportable segments for the year ended 31 December
68 ABC Holdings Limited›Annual›Report›2009› › Financial risk management continued The segment information provided to the Group
69 Consolidated Group financial statements Consolidated income statement Consolidated statement of comprehensive income Consoli
70 ABC Holdings Limited›Annual›Report›2009 Consolidated income statement for the year ended 31 December 2009 BWP’000s Interest
71 Consolidated balance sheet as at 31 December 2009 BWP’000s ASSETS Cash and short-term funds Financial assets held for tradin
72 ABC Holdings Limited›Annual›Report›2009 Consolidated statements of changes in equity for the year ended 31 December 2009 Att
73 Attributable to owners of the parent Availablefor-sale reserve 1,584 – (1,907) – – – – – – (1,907) (1,907) Treasury shares r
74 ABC Holdings Limited›Annual›Report›2009 Consolidated cash flow statement for the year ended 31 December 2009 BWP’000s CASH F
75 Notes to the financial statements for the year ended 31 December 2009 BWP’000s 1. NET INTEREST INCOME Interest and similar i
76 ABC Holdings Limited›Annual›Report›2009› › Notes to the financial statements continued BWP’000s 4. OPERATING EXPENDITURE Adm
77 5. 5.1 TAX (continued) Income tax effects relating to components of other comprehensive income 2009 Before tax (78,090) (38,
78 ABC Holdings Limited›Annual›Report›2009› › Notes to the financial statements continued BWP’000s 10. LOANS AND ADVANCES Mortg
79 BWP’000s 11. PREPAYMENTS AND OTHER RECEIVABLES Accounts receivable and prepayments Security deposits Other amounts due 2009
80 ABC Holdings Limited›Annual›Report›2009› › Notes to the financial statements continued 13.1 Analysis of investment in associ
81 15. PROPERTY AND EQUIPMENT Land and buildings 186,986 (17,407) 91,858 (39,860) (2,001) 219,576 (2,248) 387 1,597 (3,372) (3,
82 ABC Holdings Limited›Annual›Report›2009› › Notes to the financial statements continued BWP’000s 16. DEFERRED TAX Balance at
83 BWP’000s 18. DEPOSITS Deposits from banks Deposits from other customers Deposits under repurchase agreements 2009 390,249 2,
84 ABC Holdings Limited›Annual›Report›2009› › Notes to the financial statements continued BWP’000s 19. BORROWED FUNDS National
85 21. 21.1 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivatives Cross currency interest rate swaps The Group us
86 ABC Holdings Limited›Annual›Report›2009› › Notes to the financial statements continued BWP’000s 22. 22.1 22.2 STATED CAPITAL
87 25. RELATED PARTY TRANSACTIONS (continued) 2009 BWP’000s Loans and advances to entities related through shareholding: Staraf
88 ABC Holdings Limited›Annual›Report›2009› › Notes to the financial statements continued 26. EXCHANGE RATES Closing Dec 09 Uni
89 Company separate financial statements Company income statement Company statement of comprehensive income Company balance she
90 ABC Holdings Limited›Annual›Report›2009 Company income statement for the year ended 31 December 2009 BWP’000s Interest and s
91 Company balance sheet as at 31 December 2009 BWP’000s ASSETS Cash and short-term funds Derivative financial assets Intercomp
92 ABC Holdings Limited›Annual›Report›2009 Company statement of changes in equity for the year ended 31 December 2009 Stated ca
93 Company cash flow statement for the year ended 31 December 2009 BWP’000s CASH FLOWS FROM OPERATING ACTIVITIES Cash generated
94 ABC Holdings Limited›Annual›Report›2009› › Notes to the Company financial statements continued Notes to the company financia
95 BWP’000s 6. TAX (Loss)/profit before tax Income tax using standard corporate tax rate Tax exempt revenues Non-deductible exp
96 ABC Holdings Limited›Annual›Report›2009› › Notes to the Company financial statements continued BWP’000s 9. 9.1 INTERCOMPANY
97 BWP’000s 12. PROPERTY AND EQUIPMENT Cost or valuation at 31 December 2008 Additions Cost or valuation at December 2009 Accum
98 ABC Holdings Limited›Annual›Report›2009› › Notes to the Company financial statements continued Ownership of ordinary shares
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ABC Holdings Limite
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About BancABC ABC Holdings Limited is the parent company of a n
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1 Salient points › Totalincomeincreased10%to BWP392 million ›
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2 ABCHoldingsLimitedAnnualReport2009 Five-year financial highli
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3 Salient features 2009 Incomestatement(BWP’000s) Profit attrib
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4 ABCHoldingsLimitedAnnualReport2009 Chairman’s statement The G
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5 economy. Of particular note is the development of strong coop
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6 ABCHoldingsLimitedAnnualReport2009 › Chairman’sstatement cont
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7 Rand appreciated substantially against the US$ by 21%, while
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8 ABCHoldingsLimitedAnnualReport2009 › Chairman’sstatement cont
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9 Chief Executive Officer’s report Financial performance in 200
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10 ABCHoldingsLimitedAnnualReport2009 › ChiefExecutiveOfficer’s
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11 of BWP30 million relating to a property construction project
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12 ABCHoldingsLimitedAnnualReport2009 › ChiefExecutiveOfficer’s
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13 customers. Impairment of loans and advances were BWP13 milli
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14 ABCHoldingsLimitedAnnualReport2009 › ChiefExecutiveOfficer’s
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15 have prepared their individual scorecards based on their lin
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16 ABCHoldingsLimitedAnnualReport2009 › ChiefExecutiveOfficer’s
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17 Corporate social responsibility report Socialandenvironmenta
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18 ABCHoldingsLimitedAnnualReport2009 › Corporatesocialresponsi
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19 Risk and governance report Risk management The directorate a
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20 ABCHoldingsLimitedAnnualReport2009 › Riskandgovernancereport
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21 ALCO reviews a stress mismatch report monthly, which simulat
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22 ABCHoldingsLimitedAnnualReport2009 › Riskandgovernancereport
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23 EXCO also considers non-remuneration aspects of human resour
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24 ABC Holdings Limited Annual Report 2009 Directors and Group
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25 Ngoni Kudenga (Zimbabwean) Board Member Ngoni Kudenga was bo
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26 ABCHoldingsLimitedAnnualReport2009 › DirectorsandGroupmanage
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27 Directors’ responsibility Responsibility for the annual fina
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28 ABC Holdings Limited›Annual›Report›2009 Directors’ report Na
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29 Annual financial statements Independent auditor’s report Sig
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30 ABC Holdings Limited›Annual›Report›2009 Independent auditor’
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31 Significant accounting policies for the year ended 31 Decemb
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32 ABC Holdings Limited›Annual›Report›2009› › Significant accou
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33 ›› Fair›value›of›derivatives The fair value of financial ins
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34 ABC Holdings Limited›Annual›Report›2009› › Significant accou
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35 can be made. If there is a possible obligation or outflow of
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36 ABC Holdings Limited›Annual›Report›2009› › Significant accou
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37 agreed cash flows, taking into account credit quality, liqui
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38 ABC Holdings Limited›Annual›Report›2009› › Significant accou
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39 d)› D › erivatives›that›do›not›qualify›for›› hedge›accountin
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40 ABC Holdings Limited›Annual›Report›2009› › Significant accou
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41 Repurchase›of›share›capital Shares repurchased by Group comp
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42 ABC Holdings Limited›Annual›Report›2009› › Significant accou
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43 Financial risk management The Group’s activities expose it t
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44 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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45 than the total unused commitments, as most commitments to ex
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46 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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47 Nature of security held The nature of security held ranges f
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48 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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49 d)› Loans›and›advances›renegotiated› Restructuring activitie
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50 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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51 Mining – 36,188 – 284,632 – – – 320,820 Financial services 8
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52 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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53 TZS 120,967 68,968 – – 209,319 8,761 27,682 – 4,415 2,281 –
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54 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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55 ZWD (7,228) 150 26,100 – 18,990 – 1,321 – 22,945 122,365 45,
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56 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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57 Interest›rate›sensitivity›analysis The tables below illustra
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58 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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59 2008 BWP’000s Cash and short-term funds Financial assets hel
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60 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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61 Assets›and›liabilities›measured›at›fair›value Effective 1 Ja
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62 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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63 iv)› Deposits›and›borrowed›funds The estimated fair value of
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64 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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65 2008 BWP’000s Tier I capital Share capital and premium Capit
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66 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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67 The segment information provided to the Group Executive Comm
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68 ABC Holdings Limited›Annual›Report›2009› › Financial risk ma
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69 Consolidated Group financial statements Consolidated income
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70 ABC Holdings Limited›Annual›Report›2009 Consolidated income
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71 Consolidated balance sheet as at 31 December 2009 BWP’000s A
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72 ABC Holdings Limited›Annual›Report›2009 Consolidated stateme
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73 Attributable to owners of the parent Availablefor-sale reser
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74 ABC Holdings Limited›Annual›Report›2009 Consolidated cash fl
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75 Notes to the financial statements for the year ended 31 Dece
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76 ABC Holdings Limited›Annual›Report›2009› › Notes to the fina
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77 5. 5.1 TAX (continued) Income tax effects relating to compon
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78 ABC Holdings Limited›Annual›Report›2009› › Notes to the fina
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79 BWP’000s 11. PREPAYMENTS AND OTHER RECEIVABLES Accounts rece
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80 ABC Holdings Limited›Annual›Report›2009› › Notes to the fina
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81 15. PROPERTY AND EQUIPMENT Land and buildings 186,986 (17,40
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82 ABC Holdings Limited›Annual›Report›2009› › Notes to the fina
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83 BWP’000s 18. DEPOSITS Deposits from banks Deposits from othe
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84 ABC Holdings Limited›Annual›Report›2009› › Notes to the fina
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85 21. 21.1 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVI
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86 ABC Holdings Limited›Annual›Report›2009› › Notes to the fina
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87 25. RELATED PARTY TRANSACTIONS (continued) 2009 BWP’000s Loa
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88 ABC Holdings Limited›Annual›Report›2009› › Notes to the fina
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89 Company separate financial statements Company income stateme
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90 ABC Holdings Limited›Annual›Report›2009 Company income state
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91 Company balance sheet as at 31 December 2009 BWP’000s ASSETS
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92 ABC Holdings Limited›Annual›Report›2009 Company statement of
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93 Company cash flow statement for the year ended 31 December 2
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94 ABC Holdings Limited›Annual›Report›2009› › Notes to the Comp
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95 BWP’000s 6. TAX (Loss)/profit before tax Income tax using st
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96 ABC Holdings Limited›Annual›Report›2009› › Notes to the Comp
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97 BWP’000s 12. PROPERTY AND EQUIPMENT Cost or valuation at 31
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98 ABC Holdings Limited›Annual›Report›2009› › Notes to the Comp
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