ANNUAL REPORT & GROUP FINANCIAL …1sm46d1l3jt643nn5k1s8l2e-wpengine.netdna-ssl.com/wp...CHOBE...

C H O B E H O L D I N G S L I M I T E DANNUAL REPORT & GROUP FINANCIAL STATEMENTS

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Corporate information 2

Group structure 3

Chairman’s report 5 - 6

Directors’ report 7 - 8

Corporate governance 9 - 11

Report of the independent auditors 13

Statements of comprehensive income 14 - 15

Statements of financial position 16

Statements of changes in equity 17 - 18

Statements of cash flow 19

Summary of significant accounting policies 20 – 35

Financial risk management 36 - 40

Critical accounting estimates and assumptions 41

Notes to the financial statements 42 - 60

Shareholders information 61

Notice of annual general meeting 62

Proxy form 63

Notes 64

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Incorporated in BotswanaCompany number: 4543Date of incorporation: 31 May 1983

Company Secretary:R Gerrard P O Box 32, Kasane

Transfer Secretaries:DPS Consulting Services (Proprietary) LimitedPlot 50371Fairground Office Park, Gaborone

Registered Office:Plot 50371Fairground Office Park, Gaborone

Independent Auditors:PricewaterhouseCoopersGaborone

Bankers:First National Bank of Botswana LtdPrivate Bag 231, Maun First National Bank of Botswana LtdPlot 2296, Waterfront MallP O Box 740, Kasane

Stanbic Bank Botswana LimitedFairgrounds Office ParkPrivate Bag 00168, GaboroneC

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C H O B E H O L D I N G S L I M I T E DA n n u a l R e p o r t a n d G r o u p F i n a n c i a l S t a t e m e n t sf o r t h e y e a r e n d e d 2 8 F e b r u a r y 2 0 1 1

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Chairman’s Report Directors’ Report Corporate GovernanceR

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FINANCIAL HIGHLIGHTS

• Revenueincreasesby11%despitecontinuingweakeningUSDollaragainstthePula• Numberofbednightssoldincreasesby12%• Netoperatingincomefromcontinuingoperationsbeforeimpairmentsandtaxincreasesby7%on

prior period• InvestmentinNamibianassociate,LianshuluLodge(Proprietary)Limited,fullyimpaired• Continuingrefurbishmentofcampsandlodges,financedfrominternallygeneratedcashflows• Cashandcashequivalentsatyear-endincreasetoP39.9million• Lowexternaldebtgearingratiomaintained• DisinvestmentfromZambiansubsidiary,IlombeLodge&FishingCampLimited,whichhadnotbeen

contributingtooverallGroupprofits,confirmedfrom1stMarch2011.

Basis of preparation

The audited abridgedfinancial statements for the year ended28th February 2011havebeenpreparedbased on accounting policies which comply with International Financial Reporting Standards (“IFRS”). Theaccountingpoliciesappliedareconsistentwiththoseoftheannualfinancialstatementsfortheyearended28thFebruary2010,asdescribedinthoseannualfinancialstatements. Financial results

Yourdirectorsarepleased to reportaprofitafter tax fromcontinuingoperationsofP17.4million (2010:P18.5million).ThisisaftermakingafurtherprovisionofP3.6millionontheGroup’sinvestmentinLianshuluLodge(Proprietary)Limited.

Netoperatingincomefromcontinuingoperationsbefore impairmentsandtax increasesby3%onpriorperiod, which is very encouraging, especially when considering that these were achieved on the back of particularlynegativetradingconditions.

While the financial results for the final six months of the financial year were somewhat below expecta-tions, the Group utilised this period to carry out extensive ongoing refurbishments and maintenance on a number of properties which will place the Group in a strong position going forward, especially when our predominantlyNorthernHemispherebasedsourcemarketsemergefromtheir lingeringfinancialdown-turn.

TheGroup’srevenuestream,mainlydenominatedintheUSDollar,continuedtobeadverselyaffectedbythatcurrency’scontinuedweakness,especiallycomparedwiththepersistentstrengthoftheRand/Pula.

Our properties within Botswana have however continued to perform satisfactorily which has occasioned your Board to authorise continued expenditure to improve and maintain them in the belief that once world economicconditionsimprovetheGroupwillbewellplacedtotakeadvantageofthatwindfall.

ConditionsonNamibia’sCapriviStriphavenotdemonstratedthepotentialforimprovement.HenceyourDirectorssawitprudenttototallyimpairourinvestmentinassociateLianshuluLodge(Proprietary)Limited.TheGroupowns44%andtheother56%isownedbyWildernessSafaris.TheGrouphopestodivestfromthisinvestmentinthecomingyear.

OurZambianinvestmentinIIombeLodge&FishingCampLimiteddoesnotservetheGroup’smainfocus,andtheBoardhasthusapproveddivesturefromthatshareholding.Theminorityshareholderinthissubsid-iaryhasagreedtopurchasetheGroup’sshareinthecompanywitheffectfrom1stMarch2011.Theagreedpurchase price, which has been received in cash subsequent to year-end, has allowed the Group to reverse impairmentscarriedagainstthisinvestment.

TheGrouphasmaintaineditslowexternaldebtgearingratio,bearingtestimonytomanagement’scarefulcashandcapitalmanagementstrategies.

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Audit report

Aswehadindicatedinour2009releaseofresults,thewrite-offofgoodwill inthat periodcontinuestoresultinaqualificationoftheauditopinionbytheGroup’sauditorsonthebasisthatthewrite-offremainsunjustifiedunderIFRS,andthattheGroup’snetassetsaccordinglyareunderstatedbyP30.3millionatthefinancialyear-end.TheBoardremainsoftheviewthatthewritingoffofthegoodwillwasinthebestinter-estoftheGroup.

SHARE PERFORMANCE

TheperformanceofChobeHoldingsLimited’ssharesontheBotswanaStockExchangehasfollowedoverallmarket trends during the current financial year, as is evidenced by the analysis below:

Last traded price per share - 28 February 2010 - 224 thebeLowest traded price per share - during the financial year - 224 thebeHighesttradedpricepershare - duringthefinancialyear - 327thebeLast traded price per share - 28 February 2011 - 270 thebeShares in issue - 28 February 2010 - 89 439 642Shares in issue - 28 February 2011 - 89 439 642

Future outlook

GiventhelingeringdownturninNorthernHemisphereeconomiesandtheexpectedcontinuedweaknessoftheUSDollar,tradingconditionsintothenewfinancialyearwillremainchallenging. Howeverstrong future bookings on hand, a secure debt free balance sheet together with our planned further expansion intotheindustry,suggeststhattheforthcomingyearwillyieldpositiveresultsfortheGroup.

Leases

TheGroup’sleasesforCampMoremiandShindeexpireon31stDecember2011.YourDirectorsareconfi-dentthattheGroupwillbeabletorenewthoseleasesontermsthatarefavourabletotheGroup.

Dividends

In keeping with the Group’s prudent dividend distribution policy and the solvency requirements of the CompaniesAct, 2003, yourDirectors havedeclared a gross dividendof 13 thebeper share, payable to shareholdersregisteredatthecloseofbusinesson10thJune2011forpaymenton24thJune2011.

Unclaimed dividends

The directorswish to bring to the notice of shareholders that there are certain amounts of unclaimed dividendsinthecompany’srecords.ShareholdersareremindedtocontacttheTransferSecretariestoclaimtheiroutstandingdividends.

By order of the Board of Directors

Sir QKJ Masire, Chairman6th May 2011

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TheBoardofDirectorshaspleasureinsubmittingitsreporttotheshareholderstogetherwiththeauditedfinancialstatementsfortheyearended28February2011.

Nature of Business

TheGroup’sprincipalbusinessistheownershipandoperationofphotographicsafarioperationsandassoci-atedsupportbusinesses.

Directors’ Responsibility for the Financial Statements and Annual Report

In preparing the accompanying financial statements, International Financial Reporting Standards have been used and applied consistently, and reasonable and prudent judgements and estimates have been made.TheBoardapprovesanychangesinaccountingpoliciesandtheeffectsthereofarefullyexplainedintheannualfinancialstatements.ThefinancialstatementsincorporatefullandresponsibledisclosureinlinewiththestatedaccountingphilosophyoftheGroup.

Thedirectorshavereviewedthegroup’sbudgetandcashflowforecastfortheyearto28February2012. On the basis of this review, and in light of the current financial position, the directors are satisfied that ChobeHoldingsLimitedisagoingconcernandhavecontinuedtoadoptthegoingconcernbasisinpre-paringthefinancialstatements.Thegroup’sexternalauditors,PricewaterhouseCoopers,haveauditedthefinancialstatementsandtheirreportappearsonpage13.

The board recognises and acknowledges its responsibility for the Group’s systems of internal financial controlasreflectedintheCorporateGovernancestatementonpages9to11.

Stated Capital

Statedcapitalconsistsof89439642(2010:89439642)ordinarysharesofnoparvalue.

Directors

Thedirectoratefortheyearto28February2011was:

Sir QKJ Masire* (Chairman) PM van Riet Lowe* ADChilisa*BD Flatt JM Gibson (Managing Director)BEsterhuyse^^^RGerrard^K Ledimo* DANganunu*AMWhitehouse*^^ * - non-executive^^ - Australian^ - Malawian^^^ - SouthAfrican

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Share Analysis:

Shareholder analysis as at 28 February 2011

No. of shares held No. of % of No. of % of issuedper shareholder share share shares capital holders holders

1–500 547 34 100274 0.10501–1000 212 13 139368 0.151001–5000 472 30 915590 1.025001–10000 236 15 1568559 1.7610001–100000 100 6 2457379 2.76Over100000 32 2 84258472 94.21 1599 100 89439642 100.00

Dividends

Agrossdividendof13thebepershare(2010:11thebepershare)hasbeenproposedtobepaidtotheshareholdersregisteredasatcloseofbusinesson10June2011.DividendsaresubjecttowithholdingtaxatvariousratesinaccordancewiththeBotswanaIncomeTaxAct.

The directorswish to bring to the notice of shareholders that there are certain amounts of unclaimed dividendsinthecompany’srecords.ShareholdersareremindedtocontacttheTransferSecretariestoclaimtheir outstanding dividends

Approval of Financial Statements

Theannualfinancial statementsof thecompanyand theGroup,whichappearonpages14 to60were approved by the Board of Directors on 6th May 2011 and are signed on its behalf by:

Sir QKJ Masire, Chairman JM Gibson, Managing Director

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Corporate governance is the process by which companies are directed, controlled and risk managed. Directors of the Board are responsible for the governance of the Group whereas the shareholders’ role is to appointthedirectorsandtheexternalauditors.

The concept of corporate governance has grown internationally in recent years by the adoption of principles outlined in reports, such as the King II Report in South Africa and the Cadbury Report and TurnbullReportintheUnitedKingdom.Thesereportshaveasacommongoalthepromotionofhigheststandardsofcorporategovernancebyprovidingrecommendationsandprinciplesinlinewithbestpractice.ChobeHoldingsLimitedstrivestoimplementgoodcorporategovernance,adoptingrelevantaspectsoftheabovereportswherepractical.

The Board of Directors

The Board is responsible for overseeing the activities of theGroup. The Board recognises the need to conduct the business of the Group with integrity and in accordance with generally accepted corporate practicesandendorses the internationallydevelopingprinciplesof corporategovernance. It is respon-sibleformaintainingsystemsofinternalcontrol,whichprovidesreasonableassuranceofeffectiveandef-ficientoperations,internalfinancialcontrol,andcompliancewithlawsandregulations.TheBoardisrespon-sible for the preparation and integrity of the annual financial statements and related financial information contained inthisannual report. Thefinancialstatementsareprepared inaccordancewith InternationalFinancial Reporting Standards and they incorporate full and responsible disclosure to ensure that the infor-mationcontainedthereinisbothrelevantandreliable.

TheBoardcomprisesexecutiveandnon-executivedirectors.ThechairmanoftheBoardisanindependentnon-executivedirector.Theroleofnon-executivedirectors is tobring independent judgementtoboarddeliberationsanddecisions. Thedirectorsareappointedforspecifiedtermsandtheirre-appointmentisnotautomatic.Directorshaveextensivebusinessexperienceenablingthemtoapplytheirknowledgetothefunctionsrequired.

TheBoardmeetsregularlythroughouttheyear.Ithasaformalscheduleofmattersreferredtoitfordeci-sion.TheBoardotherwisedelegatesspecificresponsibilitiestodirectors.However,itremainsresponsiblefortheoverallactivitiesofthegroup,includingtheimplementationofcorporatestrategy.

TheBoardmetfourtimesduringtheyear.TheremunerationoftheBoardmembers,fortheirservicesasdirectors, was as follows:

2011 2010 P PSir QKJ Masire (Chairman) 28 000 26 000 ADChilisa 24000 22000BEsterhuyse - -BD Flatt - - R Gerrard - -JM Gibson - - K Ledimo 24 000 22 000 DANganunu 24000 22000PM Van Riet Lowe 24 000 22 000 AMWhitehouse 24000 22000

148 000 136 000

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Remuneration for management services of executive directors is set out in note 20 of the financial state-ments.

Financial Control

ThedirectorsensurethatadequatesystemsofinternalfinancialcontrolaredevelopedsothattheGroupcan give reasonable assurance with regard to:

• thecompletenessandaccuracyoftheaccountingrecords;• theintegrityandreliabilityofthepublishedfinancialstatements;• theabilityofthecompanyandtheGrouptocontinueasagoingconcern;• thesafeguardingofassets.

Audit and Finance Committee

Theboardauditandfinancecommitteecomprisesthemanagingdirector,andtwonon-executivedirectors.Thecommittee’smajor functionsare the thoroughanddetailed reviewoffinancial statements, internalcontrols and related audit matters through the independent judgement and contribution of non-executive boardmembers. In addition, the committee safeguards the credibility, transparency andobjectivity of externalfinancialreporting.

Thecommitteemeetswithmanagement,includingthecompanysecretary,andtheexternalauditors.Thecommittee reviews the financial statements and shareholders’ reports, monitors the appropriateness of accountingpoliciesandtheeffectivenessof internalcontrolsystems. Thecommitteealsoconsidersthefindingsoftheexternalauditors.

Thefollowingdirectorsweremembersoftheauditandfinancecommitteeduringtheyear:

PM van Riet Lowe* (Chairman)DANganunu*JM Gibson (Managing Director)

* - non-executive Thecommitteemettwiceduringtheyear.

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Financial Statements and Annual Report

The responsibility for the preparation of the financial statements is that of the company’s directors. Thefinancialstatementsarepreparedinaccordancewithgenerallyacceptedaccountingpractices,consis-tentlyapplied,andinaccordancewiththerequirementsoftheBotswanaCompaniesActandInternationalFinancialReportingStandards.Reasonablejudgementandestimatessupporttheinformationcontainedinthefinancialstatements.

TheBoard is responsible for the integrity, objectivity and reliabilityof the annual report. Thedirectors believe that the financial statements fairly represent the financial position of the company and the Group as at the end of the financial year and the result of their operations, changes in equity and cash flow informa-tionfortheyearthenended.

Company Secretary and Professional Advice

Alldirectorshaveunlimitedaccesstotheservicesofthecompanysecretary,whoisresponsibletotheBoardforensuringproperproceduresarefollowed.

AlldirectorsareentitledtoseekindependentprofessionaladviceconcerningtheaffairsofthecompanyandtheGroup,atthecompany’sexpense.

External Auditors

Theexternalauditorsareresponsiblefortheindependentreviewandtheexpressionofanopiniononthereasonablenessofthefinancialstatementsbasedontheiraudit.

Sir QKJ Masire, Chairman JM Gibson, Managing Director

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Annual Financial Statementsfor the year ended 28 Februar y 2011A

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INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF CHOBE HOLDINGS LIMITED

Report on the Financial Statements

We have audited the group annual financial statements and annual financial statements of Chobe HoldingsLimited, which comprise the consolidated and separate statement of financial position as at 28 February 2011, the consolidated and separate statements of compre-hensive income, changes in equity and cash flows for the year then ended, and a summary of significant account-ing policies and other explanatory notes as set out on pages14to60.

Directors’ Responsibility for the Financial Statements

Thecompany’sdirectorsareresponsiblefortheprepara-tion and fair presentation of these financial statements in accordance with International Financial Reporting Stan-dards and in compliance with the Botswana Companies Act,2003,and forsuch internalcontrolas thedirectorsdetermine is necessary to enable the preparation of fi-nancial statements that are free from material misstate-ment,whetherduetofraudorerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financialstatementsbasedonouraudit.Weconductedour audit in accordance with International Standards on Auditing.Those standards require thatwecomplywithethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial state-mentsarefreefrommaterialmisstatement.

An audit involvesperformingprocedures toobtain au-dit evidence about the amounts and disclosures in the financial statements. The procedures selected dependon the auditor’s judgment, including the assessment of the risks of material misstatement of the financial state-ments,whetherduetofraudorerror.Inmakingthoserisk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presenta-tion of the financial statements 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 entity’s internal control. An audit

also includes evaluating the appropriateness of account-ing policies used and the reasonableness of accounting estimates made by management, as well as evaluating theoverallpresentationofthefinancialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualifiedauditopinion.

Basis for qualified opinion

Assetout innote9 to theannualfinancial statements,theGroupwroteoffgoodwilltoavalueofP30336000in 2009, althoughno indication of impairment existed. AreassessmentforimpairmentinaccordancewithInter-nationalAccountingStandard36,ImpairmentofAssets,confirmed that the goodwill remained unimpaired as at 28February2011.

Accordingly,hadgoodwillnotbeenwrittenoff in2009the retained income and intangible assets as reported in the consolidated statement of financial position would have been P30 336 000 higher at the current financial positiondate.

Qualified opinion

In our opinion, except for the effects of the matter referred to in the Basis for Qualified Opinion paragraphs on the consolidated financial statements, the financial statements present fairly, in all material respects, the con-solidatedandseparatefinancialpositionofChobeHold-ings Limited as of 28 February 2011, and its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accor-dancewithInternationalFinancialReportingStandards.

PricewaterhouseCoopers

CertifiedPublicAccountants GaboronePracticing member: Rudi Binedell Date: 29 May 2011Membershipnumber:20040091.18

PricewaterhouseCoopers, PlotT: (267) 395 2011, F: (267) 397 3901

Senior Partner: B D PhiriePartners: R Binedell, R P De Silva, N B SoniAssociates: A S Edirisinghe, M Lalithkumar, S Sinha, S

Plot 50371, Fairground Office Park, Gaborone, P O Box 294(267) 397 3901, www.pwc.com/bw

nedell, R P De Silva, N B SoniAssociates: A S Edirisinghe, M Lalithkumar, S Sinha, S K K Wijesena.

P O Box 294, Gaborone, Botswana


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GROUP COMPANY 2011 2010 2011 2010 Notes P’000s P’000s P’000s P’000s CONTINUING OPERATIONS

Revenue 1 107 683 97 275 - -Other operating income 2 996 3 950 22 186 18 800Costofinventoriesconsumed/sold (14892) (12708) - -Employeebenefitexpenses 4 (23802) (24549) - -Depreciation and amortisation 8, 10 (13 146) (12 315) - -Release of impairment provision - - 1 720 -Disposal of investment in subsidiary - 34 - -Other operating expenses 2 (37 519) (31 779) (688) (772)Impairment of investment in associate (3 587) - (4 630) - Operating profit 17 733 19 908 18 588 18 028

Finance income 3 1 929 2 532 603 1 113Finance cost 3 (34) (86) (200) (400)

19 628 22 354 18 991 18 741Share of loss of associate 11 (656) (388) - -

Profit before income tax expense 18 972 21 966 18 991 18 741Income tax expense 5 (1 591) (3 457) (7 048) (188)

Profit for the year from continuing operations 17 381 18 509 11 943 18 553

DISCONTINUED OPERATION

Share of loss from discontinued operation 21 (106) (262) - - Profit for the year 17 275 18 247 11 943 18 553

Other comprehensive income

Currencytranslationdifferences 190 429 - -

Other comprehensive income for the year 190 429 - -

Total comprehensive income for the year 17 465 18 676 11 943 18 553

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GROUP 2011 2010 P’000s P’000s

Profit attributable to:Equityholdersofthecompany 17275 18984

Minorities - (737) 17 275 18 247

Total comprehensive income attributable to:Equityholdersofthecompany 17465 19413Minorities - (737) 17 465 18 676

Earningspersharefromcontinuinganddiscontinuedoperations attributable to the equity holders of the company during the year

Basic earnings per share (note 6)Fromcontinuingoperations(thebe) 19.43 21.52

Fromdiscontinuedoperation(thebe) (0.12) (0.30) 19.31 21.22Gross dividends per share (note 7)-finaldividendproposed(thebe) 13.00 11.00

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GROUP COMPANY 2011 2010 2011 2010 Notes P’000s P’000s P’000s P’000s

ASSETSNon-current assetsProperty, plant and equipment 8 65 365 71 342 - -Goodwill 9 - - - -Land lease rights 10 40 392 46 126 - -Investment in associate 11 - 3 807 - 4 195Investments in subsidiaries 12 - - 113 786 108 943Deferred income tax 16 - - 187 185

105 757 121 275 113 973 113 323Current assets Inventory 13 3 130 2 387 - -Tradeandotherreceivables 14 7927 5271 1511 -Current income tax receivable 5 720 1 688 37 19 Cash and cash equivalents 39 873 26 458 167 177

56 650 35 804 1 715 196 Assetsofdisposalgroupclassifiedas held for sale 21 1 678 - - -

Total assets 164 085 157 079 115 688 113 519

EQUITY Stated capital 15 102 899 102 899 102 899 102 899Foreign currency translation reserve (106) (296) - -Retained earnings 25 703 18 266 12 223 10 118

Totalequity 128496 120869 115122 113017

LIABILITIESNon-current liabilitiesDeferred income tax 16 14 765 17 203 - -

Current liabilitiesBorrowings 17 790 3 406 - 9Current income tax payable 137 - - -Tradeandotherpayables 18 17446 15601 566 493 18 373 19 007 566 502Liabilities of disposal group classified as held for sale 21 2 451 - - -

Totalliabilities 35589 36210 566 502

Total equity and liabilities 164 085 157 079 115 688 113 519

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Attributable to equity holders of Minority the company interest Total Foreign currency Stated Retained translation capital earnings reserve P’000s P’000s P’000s P’000s P’000s

GROUP Year ended 28 February 2010Balance at 1 March 2009 102 899 19 461 (725) 4 933 126 568

Profit for the year - 18 984 - (737) 18 247

Other comprehensive income Currencytranslationdifferences - - 429 - 429

Transactions with ownersAcquisitionofminorityshareholdersshareinL.L.Tau(Pty)Ltd - (1397) - (4196) (5593)

Dividends paid - (18 782) - - (18 782)

Balance at 28 February 2010 102 899 18 266 (296) - 120 869

Year ended 28 February 2011Balance at 1 March 2010 102 899 18 266 (296) - 120 869

Profit for the year - 17 275 - - 17 275

Other comprehensive income Currencytranslationdifferences - - 190 - 190

Transactions with owners

Dividends paid - (9 838) - - (9 838)

Balance at 28 February 2011 102 899 25 703 (106) - 128 496

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Stated Retained Total capital earnings equity P’000s P’000s P’000s COMPANY

Year ended 28 February 2010

Balance at 1 March 2009 102 899 10 347 113 246

Profit for the year - 18 553 18 553 Transactions with owners

Dividend paid - (18 782) (18 782)

Balance at 28 February 2010 102 899 10 118 113 017

Year ended 28 February 2011

Balance at 1 March 2010 102 899 10 118 113 017

Profit for the year - 11 943 11 943

Transactions with owners

Dividend paid - (9 838) (9 838)

Balance at 28 February 2011 102 899 12 223 115 122Sta

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GROUP COMPANY 2011 2010 2011 2010 P’000s P’000s P’000s P’000sOperating activities Cash generated from operations (note 19) 31 776 36 241 20 060 17 895Interest paid (note 3) (34) (86) (200) (400)Income tax paid (9 389) (8 032) (8 534) (2 821)

Cash generated from operating activities 22 353 28 123 11 326 14 674

Investing activities:Purchase of property, plant and equipment (“PPE”)(note8) (4383) (15672) - -ProceedsonsaleofPPE 2529 6555 - -Decrease in loans to associates (436) (518) (436) (906)Cash paid on acquisition of minority shareholders - (5 593) - - (Decrease)/increaseinloanstosubsidiaries - - (3123) 1128Interest received (note 3) 1 929 2 494 603 1 113 Netcash(usedin)/generatedfrominvesting activities (361) (12 734) (2 956) 1 335

Financing activities:(Repaymentof )/Netproceedsfromborrowings (206) (1523) (9) 9Dividends paid to shareholders (8 371) (15 983) (8 371) (15 983) Net cash used in financing activities (8 577) (17 506) (8 380) (15 974)

Netincrease/(decrease)incashandcashequivalents 13 415 (2 117) (10) 35

Movement in cash and cash equivalents Atbeginningofyear 26458 28541 177 142OndisposalofKalahariHolidayTours - 34 - -Increase/(decrease)intheyear 13415 (2117) (10) 35

Atendofyear 39873 26458 167 177 Represented by:Cash and cash equivalents 39 873 26 458 167 177

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Theprincipalaccountingpoliciesappliedinthepreparationofthesegroupandcompanyfinancialstate-mentsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

ThegroupconsolidatedfinancialstatementshavebeenauthorisedforissuebytheBoardofDirectorson6thMay2011.

1. Basis of preparation

Exceptassetout innote9tothefinancialstatements, thefinancialstatementshavebeenpreparedin accordance with International Financial Reporting Standards (“IFRS”) and the requirements of the BotswanaCompaniesAct(CompaniesAct,2003).Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention.Amountsareroundedtothenearestthousands.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accountingestimates.Italsorequiresmanagementtoexerciseitsjudgementintheprocessofapplyingthegroup’saccountingpolicies.Theareas involvingahigherdegreeof judgementorcomplexity,orareas where assumptions and estimates are significant to the group financial statements are disclosed inaseparatesectionofthefinancialstatements.

Theentity’sownersdonothavethepowertoamendthefinancialstatementsafterissue.

Standards, amendments to published standards and interpretations effective on or after March 2009

Standard /Interpretation

IFRS 3: business combinations – revised

IAS27:consolidatedand separate financial statements – revised

AmendmentstoIAS32–classification of rights issues

Content

Thestandardcontinuestoapplytheacquisitionmethod to business combinations, with some significantchanges.Forexample,allpaymentsto purchase a business are to be recorded at fair value at the acquisition date, with some contingent payments subsequently re-measured at fair value throughincome.Goodwillandnon-controlling(minority) interests may be calculated on a gross or netbasis.Alltransactioncostswillbeexpensed.

IAS27(revised)requirestheeffectsofalltransactions with non-controlling interests to be recordedinequityifthereisnochangeincontrol.Theywillnolongerresultingoodwillorgainsandlosses.Thestandardalsospecifiestheaccountingwhencontrolislost.Anyremaininginterestintheentity is re-measured to fair value and a gain or loss isrecognisedinprofitorloss.

Theamendmentclarifiestheaccountingtreatmentwhen rights issues are denominated in a currency otherthanthefunctionalcurrencyoftheissuer.Theamendmentstatesthatifsuchrightsareissuedpro rata to an entity’s existing shareholders for a fixed amount of currency, they should be classified as equity regardless of the currency in which the exercisepriceisdenominated.

Applicable for financial years beginning on or after

I Jul 2009

I Jul 2009

1 February 2010

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IFRIC 17: Distributions of non-cash assets to owners

Improvements to IFRS (issuedApril2009)

IFRIC 17 applies to the accounting for distributions of non-cash assets (commonly referred to as dividendsinspecie)totheownersoftheentity.Theinterpretationclarifiesthat:adividendpayableshould be recognised when the dividend is appropriately authorised and is no longer at the discretionoftheentity;anentityshouldmeasurethe dividend payable at the fair value of the net assetstobedistributed;andanentityshouldrecognisethedifferencebetweenthedividendpaid and the carrying amount of the net assets distributedinprofitorloss.

ThisisacollectionofamendmentstoIFRS.Theseamendments are the result of conclusions the IASBreachedonproposalsmadeinitsannualimprovementsproject.

I Jul 2009

Unlessotherwisespecified the amendments are effectiveforannualperiods beginning on or after 1 Jan 2010

Standards, amendments to published standards and interpretations effective on or after March 2009 (continued)

Annual improvements issued April 2009

ImprovementstoIFRS’s(issuedApril2009)wereissuedbytheIASBaspartthe‘annualimprovementspro-cess’resultinginthefollowingamendmentstostandardseffectiveforthefirsttimefor28February2011year-ends:

IFRS

IFRS 2 share-based payment

IFRS 5 non-current assets held for sale and discontinued operations

IFRS 8 operating segments

IAS1presentationoffinancialstatements

IAS7statementofcashflows

IAS17leases

IAS18revenue

IAS36impairmentofassets

IAS38intangibleassets

Subject of Amendment

scope of IFRS 2 and revised IFRS 3

Disclosures of non-current assets (or disposal groups) classified as held for sale or discontinued operations

Disclosure of information about segment assets

Current/non-currentclassificationofconvertibleinstruments

Classification of expenditures on unrecognised assets

Classification of leases of land and buildings

Determining whether an entity is acting as a principal or as an agent

Unitofaccountingforgoodwillimpairmenttest

Additionalconsequentialamendmentsarisingfrom revised IFRS 3

Measuring the fair value of an intangible asset acquired in a business combination

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IAS39financialinstruments:recognitionand measurement

IFRIC 9 reassessment of embedded derivatives

IFRIC 16 hedges of a net investment in a foreign operation

Treatingloanprepaymentpenaltiesascloselyrelated embedded derivatives

Scope exemption for business combination contracts

Cash flow hedge accounting

Scope of IFRIC 9 and revised IFRS 3

Amendmenttotherestrictionontheentitythatcan hold hedging instruments

Standards, amendments to published standards and interpretations early adopted

In2011,theentitydidnotearlyadoptanyneworrevisedstandardorinterpretation.

Standards, amendments to published standards and interpretations effective but not relevant

Standard / Interpretation

IFRS 1: First time adoption of international financial reporting standards – reved

AmendmentstoIAS39financial instruments: recognition and measurement eligible hedged items

AmendmentstoIFRS2:Group cash-settled share-based payment transactions

IFRIC 18: transfers of assets from customers

Content

Therevisedstandardhasanimprovedstructurebutdoesnotcontainanytechnicalchanges.

Theamendmentmakestwosignificantchanges.It prohibits designating inflation as a hedgeable componentofafixedratedebt.Italsoprohibitsincluding time value in the one-sided hedged risk whendesignatingoptionsashedges.

Theamendmentclarifiestheaccountingforgroupcash-settledshare-basedpaymenttransactions.Theentityreceivingthegoodsorservicesshallmeasure the share-based payment transaction as equity-settled only when the awards granted are its own equity instruments, or the entity has no obligation to settle the share-based payment transaction.Theentitysettlingashare-basedpayment transaction when another entity in the group receives the goods or services recognises the transaction as equity-settled only if it is settled initsownequityinstruments.Inallothercases,thetransactionisaccountedforascash-settled.

IFRIC 18 clarifies the accounting treatment for transfers of property, plant and equipment receivedfromcustomers.Thisinterpretationapplies to agreements with customers in which the entity receives cash from a customer when that amount of cash must be used only to construct or acquire an item of property, plant and equipment and the entity must then use the item of property, plant and equipment either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods and services,ortodoboth.

Applicable for financial years beginning on or after

1 Jul 2009

1 Jul 2009

1 Jan 2010

1 Jul 2009

Annual improvements issued April 2009 (continued)

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Standards, amendments to published standards and interpretations not yet effective and have not been early adopted or not relevant to the entity

Standard /Interpretation

AmendmenttoIFRS1 - limited exemption from comparative IFRS 7 Disclosures for first-time adopters

AmendmenttoIAS24-related party disclosures

AmendmenttoIFRS7disclosures – transfer of financial assets

IFRS 9 – financial instruments

AmendmenttoIAS12,‘income taxes’ on deferred tax

IFRIC 19: extinguishing financial liabilities with equity instruments

Content

TheamendmenttoIFRS1providesfirst-timeadopters with the same transition provisions asincludedintheamendmenttoIFRS7.Theamendmentiseffectiveforannualperiodsbeginning on or after 1 July 2010 with early adoption permitted

Thisamendmentprovidespartialrelieffromtherequirement for government related entities to disclose details of all transactions with the governmentandothergovernment-relatedentities.It also clarifies and simplifies the definition of a relatedparty.

Theamendmentsareintendedtoaddressconcernsraised during the financial crisis by the G20, among others, that financial statements did not allow users to understand the ongoing risks the entity faced due to derecognisedreceivablesandotherfinancialassets.

ThisIFRSispartoftheIASB’sprojecttoreplaceIAS39.IFRS 9 addresses classification and measurement of financial assets and replaces the multiple classification andmeasurementmodelsinIAS39withasinglemodel that has only two classification categories: amortisedcostandfairvalue.

CurrentlyIAS12,‘incometaxes’,requiresanentityto measure the deferred tax relating to an asset depending on whether the entity expects to recover the carrying amount of the asset through use or sale.Itcanbedifficultandsubjectivetoassesswhether recovery will be through use or through sale when the asset is measured using the fair valuemodel.InIAS40investmentproperty.Hencethis amendment introduces an exception to the existing principle for the measurement of deferred tax assets or liabilities arising on investment propertymeasuredatfairvalue.Asaresultoftheamendments, SIC 21, ‘income taxes- recovery of revalued non-depreciable assets’, would no longer applytoinvestmentpropertiescarriedatfairvalue.TheamendmentsalsoincorporateintoIAS12theremaining guidance previously contained in SIC 21, whichisaccordinglywithdrawn.

ThisIFRICclarifiestheaccountingwhenanentityrenegotiates the terms of its debt with the result that the liability is extinguished through the debtor issuing itsownequityinstrumentstothecreditor.Againorloss is recognised in the profit and loss account based on the fair value of the equity instruments compared tothecarryingamountofthedebt.

Applicable for financial years beginning on or after1 July 2010

1 January 2011

1 July 2011

1 January 2013

1 January 2012

1 July 2010

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Standards, amendments to published standards and interpretations not yet effective and have not been early adopted or not relevant to the entity (continued)

AmendmentstoIFRIC14: pre-payments of a minimum funding requirement

Improvements to IFRSs (issued may 2010)

Thisamendmentwillhavealimitedimpactasitapplies only to companies that are required to make minimum funding contributions to a defined benefitpensionplan.Itremovesanunintendedconsequence of IFRIC14 related to voluntary pension prepayments when there is a minimum fundingrequirement.

ThisisacollectionofamendmentstoIFRSs.Theseamendments are the result of conclusions the IASBreachedonproposalsmadeinitsannualimprovementsproject.

1 July 2010

Unlessotherwisespecified the amendments are effectiveforannualperiods beginning on or after 1 Jan 2011

Annual improvements issued May 2010

ImprovementstoIFRSs(issuedMay2010)wasissuedbytheIASBaspartthe‘annualimprovementsprocess’resultinginthefollowingamendmentstostandards issued,butnoteffectivefor28February2011year-ends:

IFRS

IFRS 1 first-time adoption of international financial reporting standards

IFRS 3 business combinations(effectiveforannualperiodsbeginningon/after 1 july 2010)

IFRS 7 financial instruments: disclosures

IAS1presentationoffinancialstatements

IAS27consolidatedandseparatefinancialstatements(effectiveforannualperiodsbeginningon/after1July2010)

IAS34interimfinancialreporting

IFRIC 13 customer loyalty programmes

Subject of Amendment

Accountingpolicychangesintheyearofadoption

Revaluation basis as deemed cost

Useofdeemedcostforoperationssubjecttorateregulation

Transitionrequirementsforcontingentconsideration from a business combination that occurredbeforetheeffectivedateoftherevisedIFRS

Measurement of non-controlling interests

Un-replacedandvoluntarilyreplacedshare-basedpayment awards

Clarification of disclosures

Clarification of statement of changes in equity

TransitionrequirementsforamendmentsarisingasaresultofIAS27consolidatedandseparatefinancial statements

Significant events and transactions

Fair value of award credits

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2. Consolidation and equity accounting

ThegroupfinancialstatementsincorporatethefinancialstatementsofChobeHoldingsLimitedandallitssubsidiariesandassociatesfortheyearended28February2011. Subsidiaries

Subsidiaries are all entities over which the group has the power to govern the financial and operating policies,generallyaccompanyingshareholdingofmorethanonehalfofthevotingrights.Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorcurrentlyconvertibleareconsid-eredwhenassessingwhetherthegrouphasthepowertocontrolanotherentity.Subsidiariesarefullyconsolidated from the date on which control is transferred to the group and are de-consolidated from thedatethatcontrolceases.

All intercompany transactions, balances and unrealised gains on transactions between group companiesareeliminatedonconsolidation.Unrealisedlossesarealsoeliminatedbutareconsideredanimpairmentindicatoroftheassettransferred.

Thepurchasemethodofaccountingisusedtoaccountfortheacquisitionofsubsidiariesbythegroup.Thecostofanacquisitionismeasuredasthefairvalueoftheassetsgiven,equityinstrumentsissuedand liabilities incurred or assumed at the date of acquisition plus costs directly attributable to the acquisition.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombination are measured initially at their fair values at the acquisition date, irrespective of the extent ofanyminorityinterest.

Theexcessofthecostofacquisitionoverthefairvalueofthegroup’sshareoftheidentifiablenetassetsofthesubsidiaryacquiredisrecordedasgoodwill.Ifthecostofacquisitionislessthanthefairvalueofthenetassetsofthesubsidiaryacquired,thedifferenceisrecogniseddirectlyinthestatementofcom-prehensiveincome.

Minority shareholders are treated as equity participants and, therefore, all acquisitions of minority interests or disposals by the group of its minority interests in subsidiary companies where control is maintained subsequent to the transaction are accounted for as equity transactionswithminorities.Consequently, thedifferencebetween thepurchasepriceand thebookvalueof aminority interestpurchasedisrecordedinequity.Allprofitsandlossesarisingasaresultofthedisposalofinterestsinsubsidiaries to minorities, where control is maintained subsequent to the disposal, are also recorded in equity.

Accountingpoliciesofsubsidiarieshavebeenchangedwherenecessarytoensureconsistencywiththepoliciesadoptedbythegroup.

Thecompanyaccounts for investments insubsidiariesatcost,which includes transactioncosts, lessaccumulatedimpairmentlosses.

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2. Consolidation (continued)

Investmentsinsubsidiariesareassessedforimpairmentwhenindicatorsofimpairmentareidentified.Such impairment indicators include, but are not limited to, for example:

• Sustaineddeteriorationinfinancialresultsofoperationsand/orfinancialpositionofansubsid-iary;

• Changes in theoperating environmentof an subsidiary, including regulatory and economicchanges,marketentrybynewcompetitors,etc.;and

• Inabilityofasubsidiarytoobtainfinancerequiredtosustainorexpandoperations.

Where impairment indicators are identified, the recoverable value of the subsidiary is measured at the lowerofrealisablevaluethroughsalelesscoststosell,andvalueinuse.Valueinuseisthepresentvalueoffuturecashflowsexpectedtobederivedfromthesubsidiary.

Where the recoverable value of an subsidiary is below the carrying amount, the carrying amount is reduced to the recoverable value through an impairment loss charged to the statement of comprehen-siveincome.

Once an impairment loss has been recognised, the company assesses at each year-end date whether thereisanindicationthattheimpairmentlosspreviouslyrecognisednolongerexistsorhasdecreased.If this is the case, the recoverable value of the subsidiary is remeasured and the impairment loss reversedorpartiallyreversedasmaybethecase.

Thegroup’sfinancial statements includethefinancial statementsofChobeHoldingsLimitedand its following subsidiaries, whose financial year ends are all 28 February:

-CapriviFlyFishingSafaris(Pty)Ltd - 100%-ChobeDairies(Pty)Ltd - 50%- Chobe Farms (Pty) Ltd - 662/3%-ChobeGameLodge(Pty)Ltd - 100%-ChobeProperties(Pty)Ltd - 100%-DesertandDeltaSafaris(Pty)Ltd - 100%-DesertandDeltaSafaris(SA)(Pty)Ltd - 100%-IlombeLodgeandFishingCampLtd - 50%-KerandDowneyBotswana(Pty)Ltd - 100%-L.L.Tau(Pty)Ltd - 100%-LloydsCamp(Pty)Ltd - 100%-TheBookingsCompany(Pty)Ltd - 100%-Venstell(Pty)Ltd - 100%

Associates

Associates are all entities overwhich the group has significant influence but not control, generally accompanyingashareholdingofbetween20%and50%ofthevotingrights.Investmentsinassociatesareaccountedforusingtheequitymethodofaccountingandare initially recognisedatcost.Underthis method, the group’s share of post-acquisition accumulated profits or losses of associated compa-nies, which are generally determined from their latest audited financial statements, is included in the carrying value of the investments, and the annual profit attributable to the group is recognised in the statementofcomprehensiveincome.

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2. Consolidation (continued)

Thegroup’s shareofpost-acquisitionmovement in reserves is recognised inother reserves.Thecu-mulative post-acquisitionmovements are adjusted against the carrying amount of the investment.Thecarryingamountofsuchinterestsisreducedtorecogniseanypotentialimpairment,otherthana temporarydecline,inthevalueofindividualinvestments.

Thegroup’s investment inassociates includesgoodwill (netofaccumulated impairment loss) identi-fiedonacquisition.Whenthegroup’sshareoflossesinanassociateequalsorexceedsitsinterestinthe associate, the group does not recognise further losses unless the group has incurred obligations, issued guaranteesormadepaymentsonbehalfoftheassociate.

Where another group entity transacts with an associate of the group, unrealised profits and losses are eliminated to the extent of the group’s interest in the relevant associate, except where unrealised losses provideevidenceofanimpairmentoftheassettransferred.

Accountingpoliciesofassociateshavebeenchangedwherenecessarytoensureconsistencywiththepoliciesofthegroup.

The company accounts for investments in associates at cost, which includes transaction costs, less accumulatedimpairmentlosses.

Investments inassociatesareassessed for impairmentwhen indicatorsof impairmentare identified.Such impairment indicators include, but are not limited to, for example:

• Sustaineddeteriorationinfinancialresultsofoperationsand/orfinancialpositionofanassoci-ate;

• Changes in the operating environment of an associate, including regulatory and economicchanges,marketentrybynewcompetitors,etc.;and

• Inabilityofanassociatetoobtainfinancerequiredtosustainorexpandoperations.

Where impairment indicators are identified, the recoverable value of the associate is measured at the lowerofrealisablevaluethroughsalelesscoststosell,andvalueinuse.Valueinuseisthepresentvalueoffuturecashflowsexpectedtobederivedfromtheassociate.

Where the recoverable value of an associate is below the carrying amount, the carrying amount is reduced to the recoverable value through an impairment loss charged to the statement of comprehen-siveincome.

Once an impairment loss has been recognised, the company assesses at each year-end date whether thereisanindicationthattheimpairmentlosspreviouslyrecognisednolongerexistsorhasdecreased.If this is the case, the recoverable value of the associate is remeasured and the impairment loss reversed orpartiallyreversedasmaybethecase.

Thegroup’sshareholdinginactiveassociatescomprises:

LianshuluLodge(Proprietary)Limited44%

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3. Foreign currency translation Functional and presentation currency

Items included in the financial statements of each of the group’s entities are measured using the cur-rencyoftheprimaryeconomicenvironment inwhichtheentityoperates(‘thefunctionalcurrency’). TheconsolidatedfinancialstatementsarepresentedinBotswanaPula,whichisthecompany’sfunc-tionalandpresentationcurrency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates pre-vailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementof such transactions and from the translation at year-end exchange rates of monetary assets and liabili-tiesdenominatedinforeigncurrenciesarerecognisedinthestatementofcomprehensiveincome.

Group companies

The results and financial position of all the group entities (none of which has the currency of a hyperinflationaryeconomy)thathaveafunctionalcurrencydifferentfromthepresentationcurrencyare translated into the presentation currency as follows:

(i) assets and liabilities for each balance sheet presented are translated at the closing rate at the date of thatbalancesheet;

(ii) income and expenses for each income statement are translated at average exchange rates, unless thisaverageisnotareasonableapproximationofthecumulativeeffectoftheratesprevailingonthetransactiondates,inwhichcaseincomeandexpensesaretranslatedatthedatesofthetransactions;and

(iii)allresultingexchangedifferencesarerecognisedasaseparatecomponentofequity.

Onconsolidation,exchangedifferencesarising fromthetranslationof thenet investment in foreign operations, and of borrowings and other currency instruments designated as hedges of such investments,are taken toothercomprehensive income.Whena foreignoperation is sold,exchange differencesthatwererecordedinothercomprehensiveincomearerecognisedinthestatementofcom-prehensiveincomeaspartofthegainorlossonsale.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets andliabilitiesoftheforeignentityandtranslatedattheclosingrate.

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4. Segmental reporting

Thesegment informationreportedtothegroup’schiefoperatingdecisionmaker for thepurposeofresource allocation and assessment of segment information is specifically focused on individual com-paniesinthegroup.

Thevariousgroupcompaniesofferstandardisedtourism-relatedserviceswithinthesamegeographicalregion in Northern Botswana and portions of Namibia and Zambia in close proximity to the Botswa-naoperations.TheSouthAfricansubsidiariesprovidemarketingandbookingservicestothegroup’sotheroperations.(Althoughessentiallysimilarinnature,variousindividualoperationsaremaintainedas separate legal entities in order to comply with specific legal requirements of underlying lease and concessionagreements.)

Thevariousindividualcampsandlodgesandancillaryservicesaregenerallymarketed,pricedandutil-ised by guests as a single package (‘tour circuit’) and are subject to similar economic, geographical and businessrisks.

Accordingly,thegroupconsidersthattherearenoseparatelyreportablesegmentsunderIFRS8.

5. Property, plant and equipment

Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Depreciation is recorded by a charge to statement of comprehensive income and computed on a straightlinebasistowriteoffthecostoftheassets,totheirresidualvalues,overtheirestimatedusefullives as follows:

Aircraft -6.7%straightline

Aircraftengineandpropellers -numberofhoursflown

Camp leasehold improvements - over the period of the lease

Furnitureandfittings -10%-15%straightline

Machineryandequipment -15%-25%straightline

Motorvehiclesandmotorboats -12.5%-25%straightline

Theassets’residualvaluesandusefullivesarereviewed,andadjustedifappropriate,ateachbalancesheetdate.

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written downimmediatelytoitsrecoverableamount.

Gains and losses on disposal of property, plant and equipment are determined by reference to their carryingamountandaretakenintoaccountindeterminingoperatingprofit.

Repairs and maintenance are charged to the statement of comprehensive income during the financial periodinwhichtheyareincurred.Thecostofmajorrenovationsisincludedinthecarryingamountofthe asset when it is probable that future economic benefits in excess of the originally assessed standard ofperformanceoftheexistingassetwillflowtothegroup.Majorrenovationsaredepreciatedovertheremainingusefullifeoftherelatedasset.

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6. Intangible assets

(a) Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the group’s share ofthenetidentifiableassetsoftheacquiredsubsidiary/associateatthedateofacquisition.Goodwillonacquisitionsofsubsidiariesisincludedin‘intangibleassets’.Goodwillonacquisitionsofassociatesisincludedin‘investmentsinassociates’.Separatelyrecognisedgoodwillistestedannuallyforimpair-mentandcarriedatcostlessaccumulatedimpairmentlosses.Impairmentlossesongoodwillarenotreversed.Gainsandlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

Goodwillisallocatedtocash-generatingunitsforthepurposeofimpairmenttesting.Theallocationismade to those cash-generating units or groups of cash-generating units that are expected to benefit fromthebusinesscombinationinwhichthegoodwillarose.

(b) Land rights

Separatelyacquiredlandrightsareshownathistoricalcost.Landrightsacquiredinabusinesscombina-tionarerecognisedatfairvalueattheacquisitiondate.Wherelandrightsareacquireddirectlythroughagreement with government, the group records these at nominal amounts at the inception of the un-derlyinglease/rentalagreementsorwhensuchagreementsarerenewed.

Land rights have a finite useful life based on the underlying contractual agreement assigning such rights totheconsigneeandarecarriedatcostlessaccumulatedamortisation.Amortisationiscalculatedusingthe straight-line method to allocate the cost of land rights over their estimated useful lives based on contractualassignmentterms.

7. Impairment of non-financial assets

Assetsthathaveanindefiniteusefullife,forexamplegoodwill,arenotsubjecttoamortisationandaretestedannually for impairment.Assets thataresubject toamortisationare reviewedfor impairmentwhenever events or changes in circumstances indicate that the carrying amount may not be recover-able.Animpairmentlossisrecognisedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparately identifiablecashflows (cash-generatingunits).Non-financialassetsotherthangoodwillthatsufferedimpairmentarereviewedforpossiblereversaloftheimpairmentateachreportingdate.

8. Inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.Costisdeterminedusingthefirst-in,first-out(FIFO)method.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusi-ness,lessapplicablevariablesellingexpenses.

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9. Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, depos-its held at call with banks, other short-term highly liquid investments with original maturities of three monthsorless,andbankoverdrafts.Bankoverdraftsareincludedascurrentliabilitiesonthebalancesheet.

10. Financial assets Thegroupclassifiesitsfinancialassetsinthefollowingcategories:atfairvaluethroughprofitorlossandloansandreceivables.Theclassificationdependsonthepurposeforwhichthefinancialassetswereacquired.Managementdeterminestheclassificationofitsfinancialassetsatinitialrecognitionandre-evaluatesthisdesignationateveryreportingdate.

i) Financial assets at fair value through profit or loss Financialassetsatfairvaluethroughprofitorlossarefinancialassetsheldfortrading.Afinancialassetisclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshort-term.Assetsinthiscategoryareclassifiedascurrentassets. ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are notquotedinanactivemarket.Theyareincludedincurrentassets,exceptformaturitiesgreaterthan12monthsafterthebalancesheetdate.Theseareclassifiedasnon-currentassets.TheGroup’sloansandreceivablescomprise‘tradeandotherreceivables’inthebalancesheet. Financial assets are initially recognised at fair value plus transaction costs for all financial assets not carriedatfairvaluethroughprofitorloss.Financialassetscarriedatfairvaluethroughprofitorlossareinitially recognised at fair value and transaction costs are expensed in the statement of comprehensive income.Financialassetsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshave expired or have been transferred and the company has transferred substantially all risks and re-wardsofownership.Loansand receivablesarecarriedatamortisedcostusing theeffective interestmethod. Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category are presented in the statement of comprehensive income within ‘other income’ in the periodinwhichtheyarise.Dividendincomefromfinancialassetsatfairvaluethroughprofitorlossisrecognisedintheincomestatementaspartofotherincomewhenthegroup/company’srighttoreceivepaymentsisestablished.

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11. Trade receivables

Trade receivablesare recognised initiallyat fairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.Aprovisionforimpairmentoftradereceivables is established when there is objective evidence that the group will not be able to collect allamountsdueaccordingtotheoriginaltermsofreceivables.Significantfinancialdifficultiesofthedebtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquencyinpaymentsareconsideredindicatorsthatthetradereceivableisimpaired.Theamountoftheprovisionisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheeffectiveinterestrate.Thecarryingamountoftheassetisreducedthrough the use of an allowance account, and the amount of the provision is recognised in the state-mentofcomprehensive income.Whenatradereceivable isuncollectible it iswrittenoffagainsttheallowanceaccountfortradereceivables.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedtothestatementofcomprehensiveincome.

12. Stated capital

Ordinary shares are classified as equity and stated at the fair value of the consideration received. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,netoftax,fromtheproceeds.

13. Borrowings

Borrowingsarerecognisedinitiallyatfairvalue,netoftransactioncostsincurred.Borrowingsaresub-sequentlystatedatamortisedcost;anydifferencebetweenproceeds(netoftransactioncosts)andtheredemption value is recognised in the statement of comprehensive income over the period of the bor-rowingsusingtheeffectiveinterestmethod.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer set-tlementoftheliabilityofatleast12monthsafterthebalancesheetdate.S

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14. Current and deferred income tax

Thetaxexpensefortheperiodcomprisescurrentanddeferredtax.Taxisrecognisedinthestatementof comprehensive income, except to the extent it relates to items recognised in other comprehensive income.Inthiscase,taxisalsorecognisedinothercomprehensiveincome.

Thecurrentincometaxchargeiscalculatedonthebasisofthetaxlawsenactedorsubstantivelyenact-ed at the balance sheet date in the countries where the company and its subsidiaries operate and gen-eratetaxableincome.Managementperiodicallyevaluatespositionstakenintaxreturnswithrespectto situations in which applicable tax regulations is subject to interpretation and establishes provisions whereappropriateonthebasisofamountsexpectedtobepaidtothetaxauthorities.

Deferredincometaxisprovidedforinfull,usingtheliabilitymethod,ontemporarydifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingvaluesforfinancialreportingpurposes.However,ifthedeferredincometaxesarisefrominitialrecognitionofanassetorliabilityinatransactionotherthanabusinesscombinationthatatthetimeofthetransactionaffectsneitheraccountingnortax-ableprofitorloss,itisnotaccountedfor.Deferredincometaxisdeterminedusingtaxrates(andlaws)that have been enacted or substantially enacted at the balance sheet date and are expected to apply whentherelateddeferredincometaxassetisrealisedorthedeferredincometaxliabilityissettled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will beavailableagainstwhichthetemporarydifferencescanbeutilised.

Deferredincometaxisprovidedontemporarydifferencesarisingoninvestmentsinsubsidiariesandassociatesandjointventures,exceptwherethetimingofthereversalofthetemporarydifference iscontrolledbythegroupanditisprobablethatthetemporarydifferencewillnotreverseintheforesee-ablefuture.

Withholdingtaxof15%ispayableonthegrossvalueofdividends.ThiswithholdingtaxistreatedasanadvancepaymentofcompanytaxandissetoffagainstAdditionalCompanyTaxinthefinancialyearinwhichitispaid.Dividendsareaccountedforgrossofthiswithholdingtax.

15. Provisions

Provisions for environmental restoration, restructuring costs and legal claims are recognised when the grouphasapresentlegalorconstructiveobligationasaresultofpastevents;itismorelikelythannotthatanoutflowofresourceswillberequiredtosettletheobligation;andtheamounthasbeenreliablyestimated.Restructuringprovisionscomprise lease terminationpenaltiesandemployee terminationpayments.Provisionsarenotrecognisedforfutureoperatinglosses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settle-mentisdeterminedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthe likelihood of an outflow with respect to any one item included in the same class of obligations may besmall.

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15. Provisions (continued)

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and therisksspecifictotheobligation.Theincreaseintheprovisionduetopassageoftimeisrecognisedasinterestexpense.

16. Revenue recognition

Revenue comprises fair value of the consideration received or receivable for the sale of goods and ser-vices in theordinarycourseof thecompanyactivities.Revenue is recognisedto theextent that it isprobablethateconomicbenefitswillflowtothecompanyandtherevenuecanbereliablymeasured.Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales withinthegroup.

Sale of services/goodsThegroupsellsbednightsatitscampsandlodgestoguestsandalsoprovidesguidedsafaristoguests.Revenue from these services is recognised when the service is provided to the guest, usually over the periodoftheguestsstayatthecampsandlodges.

Thegroupalsoprovidesflighttransferstoitsguestsbetweenthegroup’scampsandlodgesaswellastootherfacilities.Revenuefromflighttransfersisrecognisedwhentheservicehasbeenrendered.Salesofcurios,beveragesandancillarygoodsareusually incashorbycreditcard.Revenue is recognisedwhenthesignificantrisksandrewardsofownershipoftheservices/goodshavepassedtothebuyer.Therecordedrevenue includesapplicablecreditcard feespayable for thetransaction.Such feesareincludedinbankcharges.

Interest incomeInterestincomeisrecognisedonatime-proportionbasisusingtheeffectiveinterestmethod.Whenareceivable is impaired, the group reduces the carrying amount to its recoverable amount, being the es-timatedfuturecashflowdiscountedatoriginaleffectiveinterestrateoftheinstrument,andcontinuesunwindingthediscountasinterestincome.Interestincomeonimpairedloansisrecognisedusingtheoriginaleffectiveinterestrate.

Rental incomeRental income is recognised on an accruals basis in accordance with the substance of the relevant agreements.

Dividend incomeDividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

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17. Related party transactions

Relatedpartiescomprisedirectorsof thecompanyandcompanieswithcommonownershipand/ordirectors.Transactionswithrelatedpartiesareinthenormalcourseofbusinessandonnormalcom-mercialterms,exceptasnotedinthefinancialstatements.

18. Leases

Leases in which a significant portion of the risks and rewards of ownership are retainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincen-tives received from the lessor) are charged to the statement of comprehensive income on a straight-line basisovertheperiodofthelease.

19. Employee benefits

Thegrouphasnopensionfundarrangementsforitsemployees.IntermsofLabourLawLegislation,sev-erancepayisduetoemployeeswhoarenoteligibleforgratuities.Provisionforseveranceandgratuitybenefitsareraisedintheperiodinwhichtheyaccrue.

Thegrouprecognisesaliabilityandanexpenseforbonusesandprofit-sharingduetomanagementandemployees where contractually obliged or where there is a past practice that has created a constructive obligation.

20. Dividend distribution

Dividend distribution to the company’s shareholders is recognised as a liability in the financial state-mentsintheperiodinwhichthedividendsareapprovedbythecompany’sdirectors.

21. Earnings per ordinary share

Earningsperordinarysharearecalculatedusingtheweightedaveragenumberofordinarysharesinissueduringtheperiodandarebasedonthenetprofitattributabletoordinaryshareholders.

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Financial risk indicators

The group’s activities expose it to a variety of financial risks: market risk (including currency risk and interestraterisk),creditriskandliquidityrisk.Thegroup’soverallriskmanagementprogrammefocusesontheunpredictabilityofitsmarketsandseekstominimisepotentialadverseeffectsonthegroup’sfinancialperformance.

RiskmanagementiscarriedoutbyseniormanagementunderpoliciesapprovedbytheBoardofDirectors.TheBoardprovidesprinciplesforoverallriskmanagement,aswellaspoliciescoveringspecificareas,suchasforeignexchangerisk,interestraterisk,creditrisk,andtheinvestmentofexcessliquidity.

a) Market risk

i) Foreign currency riskInthenormalcourseofbusiness,thegroupentersintotransactionsdenominatedinforeigncurrencies.Inaddition, the group has assets and liabilities in foreign currencies, which exposes it to fluctuations in foreign currencyexchangerates.

Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities de-nominatedinacurrencythatisnottheentity’sfunctionalcurrency.

At 28 February 2011, if the currency had weakened/strengthened by 10% against the US dollarwith all other variables held constant, post-tax profit for the year would have been, for the group, P536640(2010:P588914)and,forthecompany,PNil(2010:PNil)higher/lower,mainlyasaresultofforeignexchange losses/gainson translationofUSdollardenominatedbankbalances, foreignexchangegains/losseson translationofUSdollardenominated trade receivables,and foreignexchange losses/gainsontranslationofUSdollardenominatedtradeandotherpayables.

At 28 February 2011, if the currency had weakened/strengthened by 10% against the South AfricanRand with all other variables held constant, post-tax profit for the year would have been, for the group, P98156(2010:P170730)higher/lower,mainlyasaresultofforeignexchangelosses/gainsontranslationofSouthAfricanRanddenominatedbankbalances,foreignexchangegains/lossesontranslationofSouthAfricanRanddenominatedtradereceivables,andforeignexchange losses/gainsontranslationofSouthAfricanRanddenominatedtradeandotherpayables.

At 28 February 2011, if the currency had weakened/strengthened by 10% against the Namibian Dol-lar with all other variables held constant, post-tax profit for the year would have been, for the group, P554115(2010:P514674)and,forthecompany,P557919(2010:P525242)higher/lower,mainlyasaresultofforeignexchangelosses/gainsontranslationofNamibianDollardenominatedbankbalances,for-eignexchangegains/lossesontranslationofNamibianDollardenominatedtradereceivables,andforeignexchangelosses/gainsontranslationofNamibianDollardenominatedtradeandotherpayables.

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a) Market risk (continued)

i) Foreign currency risk (continued)

At 28 February 2011, if the currency had weakened/strengthened by 10% against the Zambian Kwacha with all other variables held constant, post-tax profit for the year would have been, for the group, P159923 (2010:P182185)and, for thecompany,PNil (2010:PNil)higher/lower,mainlyasa resultofforeign exchange losses/gains on translation of Zambian Kwacha denominated bank balances, foreign exchange gains/losses on translation of Zambian Kwacha denominated trade receivables, and foreign exchangelosses/gainsontranslationofZambianKwachadenominatedtradeandotherpayables.

At28February2011and28February2010thegroup’sfinancialassetsandliabilitiesdenominatedinforeigncurrencies were:

GROUP COMPANY 2011 2010 2011 2010 P’000s P’000s P’000s P’000sLoans to associateNamibian Dollars 7 438 7 003 7 438 7 003

Bank balancesUSDollars 5368 6292 - -Namibian Dollars 33 67 - - SouthAfricanRands 142 420 - -Zambian Kwacha 240 10 - -

5 783 6 789 - -

TradereceivablesSouthAfricanRands 1453 2427 - -USDollars 1820 1713 - -Namibian Dollars 32 32 - - Zambian Kwacha 78 96 - -

3 383 4 268 - -

TradepayablesSouthAfricanRands (286) (571) - -USDollars (33) (152) - -Zambian Kwacha (40) (8) - - Namibian Dollars (115) (240) - -

( 474) ( 971) - -

BorrowingsZambia Kwacha (2 410) (2 527) - - Netdebit/(credit)balanceinrespectivecurrencies

USDollars 7155 7853 - -

Namibian Dollars 7 388 6 862 7 438 7 003

SouthAfricanRands 1309 2276 - -

Zambian Kwacha (2 132) (2 429) - -

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a) Market risk (continued)

ii) Cash flow and fair value interest rate risk

The group’s interest rate risk arises primarily from long-termborrowings and interest-earning deposits.Suchborrowingsanddepositsissuedatvariableratesexposethegrouptocashflowinterestraterisk.Thegrouphadnosignificantborrowingsatthebalancesheetdate.

b) Credit risk

Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well ascreditexposurestocustomers,includingoutstandingreceivablesandcommittedtransactions.Forbanksandfinancialinstitutions,onlyreputablepartiesareaccepted.

Thegroupcontinuouslymonitorsdefaultsofcustomersandothercounterparties identifiedeither indi-viduallyorbygroup,andincorporatetheinformationintocreditriskcontrols.

Ifcustomersareindependentlyrated,theseratingsareused.Otherwise,ifthereisnoindependentrating,risk control assesses the credit quality of the customer, taking into account its financial position, past experi-enceandotherfactors.IndividualrisklimitsaresetbasedoninternalorexternalratingsinaccordancewithlimitssetbytheBoard.Theutilisationofcreditlimitsisregularlymonitored.Inaccordancewithstandardpractice within the industry, the group requires pre-payment of standard charges prior to booking confir-mationtherebyeliminatingasignificantportionofcreditriskpriortorenderingservices.Thebalanceofduesfromguestsissettledthroughbanktransfer,incashorusingmajorcreditcards.Themostsignificantduesfromguestarisefromtransactionswithagents.Thegroupcarefullyvetsnewagentspriortoextendingcreditterms,anddealsmostlywithagentswithwhomithasestablishedreliablelong-termrelationships.Asaresultofthis,thegrouphistoricallyhassucceededinminimisingnegativeimpactsofadversecreditriskevents.

Thegroupplaces itscashandcashequivalentswithfinancial instituitionsofhighrating.At28February2011thegroup’scashandcashequivalentswereheldonaccountatthefollowinginstitutions.

GROUP 2011 2010 P’000s P’000sFirst National Bank of Botswana Limited 39 140 25 988Barclays Bank of Botswana Limited 59 204 Stanbic Bank Botswana Limited 167 177 Bank Windhoek Limited 31 37

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b) Credit risk (continued)

Thetablebelowshowsananalysisoftradereceivablesattheircarryingvaluerespectivelyasatthebalancesheetdate.

Fully Past due but Total performing not impaired Impaired > 3 months P’000s P’000s P’000s P’000sGROUP At 28 February 2011 Tradereceivables -Agents 2828 2828 - -- Other 3 660 3 660 - -

Total 6 488 6 488 - -

At 28 February 2010 Tradereceivables-Agents 1971 1331 640 -- Other 485 165 320 -

Total 2 456 1 496 960 - COMPANY

At 28 February 2011 Other 1 511 1511 - - At 28 February 2010 Other - - - -

Thecompany’smanagementconsidersthatalltheabovefinancialassetsthatarenotimpairedforeachofthereportingdatesunderreviewaregoodquality,includingthosethatarepastdue.

No credit limits were exceeded during the reporting period, and management does not expect any losses fromnon-performancebythesecounterparties.

Noneofthecompany’sfinancialassetsaresecuredbycollateralorothercreditenhancements.

c) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the avail-ability of funding through an adequate amount of committed credit facilities and the ability to close out marketpositions.

Thetablebelowanalysesthegroup’sfinancialliabilitiesintorelevantmaturitygroupingsbasedonthere-mainingperiodatthebalancesheettothecontractualmaturitydate.Theamountsdisclosedinthetablearethecontractualundiscountedcashflows.Balancesduewithin12monthsequaltheircarryingbalancesastheimpactofdiscountingisnotsignificant.

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c) Liquidity risk (continued)

Between 1 Less than and 2 Over 1 year years 2 years P’000s P’000s P’000s GROUPAt 28 February 2011Tradeandotherpayables 8534 - -Related parties 172 - - Borrowings 3 200 - -

11 906 - -

At 28 February 2010Tradeandotherpayables 15463 - -Related parties 138 - -Borrowings 3 406 - -

19 007 - - COMPANY At 28 February 2011

Tradeandotherpayables 378 - -Related parties 172 - -

550 - -

At 28 February 2010

Tradeandotherpayables 366 - -Related parties 136 - -

502 - -

Thegroup’sapproachtomanagingliquidityistoensureasfaraspossiblethatitwillalwayshavesufficientliquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptablelossesorriskingdamagetothegroup’sreputation.

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Thegroupmakesestimatesandassumptionsconcerningthe future.Theresultingaccountingestimateswill, by definition, seldom equal the related actual results.The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the nextfinancialyeararediscussedbelow.

(a) Estimated impairment of goodwillThe group tests annually whether goodwill has suffered any impairment, in accordance with its accountingpolicyongoodwill.The recoverableamountsof cash-generatingunitshavebeendeter-minedbythedirectorsbasedontheforecastedpost-taxfreecashflowsofeachcash-generatingunit.Thesecalculationsrequiretheuseofestimates,themostsignificantofwhichare:• Occupancyratesoflodges(averaging44%)• ExchangeratesbetweentheBWPulaandtheUSDollar(6.40)• Remainingperiodof leaseholdconcessions (basedonexistingcontractualarrangements foreach

underlyingcashgeneratingunit),anda50%possiblityofrenewaluponexpiry• Discountratesof11.8%p.a.and3%p.a.forcashflowsdenominatedinBotswanaPulaandUnited

StatesDollar,respectively.

(b) Income taxesThegroup is subject to incometaxes innumerous jurisdictions. Judgement is required indetermin-ingthegroup’sprovisionforincometaxes.Therearemanytransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.Thegrouprecognisesliabilitiesforanticipatedtaxaudit issuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswill impact the incometaxanddeferredtaxprovisions in theperiod inwhichsuchdeterminationismade.

(c) Residual values of property, plant and equipmentResidual values of buildings and aircraft are based on current estimates of the value of these assets at theendoftheirusefullives.Theestimatedresidualvaluesofbuildingshavebeendeterminedbythedirectorsbasedontheirknowledgeoftheindustry.Theestimatedresidualvalueofaircrafthasbeenobtainedfromanindependentexpertintheaviationindustry.

(d) Going concernIn applying the going concern principle for preparation of the group annual financial statements, it is adjudged that the group will be able to retain (and renew) its existing leases over land and land conces-sionsonthesameorsimilartermsasthoseexistingduringthecurrentfinancialyear(refernote22).

(e) Impairment of investments in subsidiaries and associate

Thecompanymakesanassessmentofthepotentialimpairmentoftheinvestmentsinsubsidiariesandassociatewhenevereventsorcircumstancesmayindicatethepresenceofimpairmentindicators.

Key factors considered include the current and projected future financial results and financial positions ofthesubsidiary/associate,andtheirabilitytomaintainpositivedividendpayoutpolicies. Thecom-pany also assesses the potential impact of changes in the business and operating environments of the subsidiaryandassociate.Theseincludemonitoringoftheeconomicandregulatoryenvironmentsun-derwhichtheyoperate.

The global recessionary environment has placed the subsidiaries and associate’s businesses understrainthroughreductioninoccupanciesandanunfavourableexchangeratemovement.ThebusinessishighlydependentontouristsfromEuropeandtheUnitedStates.

While the continuing impact of these factors cannot be accurately estimated, the subsidiary and as-sociatehavemadereasonableeffortstomitigatetheseimpactsandtoaccountfortheseintheirprofitforecastsandbudgets.

Based on the available information, the group had not identified any further impairment or reversal of previously recognised impairment of its investments in subsidiaries and associate other than those enumeratedonnotes11and12totheannualfinancialstatements.

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GROUP COMPANY 2011 2010 2011 2010 P’000s P’000s P’000s P’000s 1. REVENUE

Lodge revenue 23 664 19 908 - -Camp revenue 54 525 52 908 - -Aircharterrevenue 26366 22126 - -Curio sales 1 545 1 529 - -Commission earned 751 677 - -Other 832 127 - -

107 683 97 275 - -

2. OTHER OPERATING EXPENSES

Auditors’remuneration 782 850 128 132Aircraftcharterandsub-charterexpenses 4192 2580 - -Director’s remuneration - Fees 172 136 172 136- Management services (note 20) 2 147 1 075 - -Freight 2 100 1 662 - -Insurance 1 885 1 786 - -Gameactivities&transfers 1999 1183 - -Government fees 2 079 1 840 - -Marketing expenses 3 965 3 569 7 35Miscellaneous expenses 5 046 5 707 324 419Room expenses 355 954 - -Rent 1 661 1 534 - -Resource royalty 2 091 2 010 - -Repairs&maintenance 8988 6843 - -Stock exchange fees 57 50 57 50

37 519 31 779 688 772

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GROUP COMPANY 2011 2010 2011 2010 P’000s P’000s P’000s P’000s3. FINANCE INCOME AND COSTS

Finance incomeInterest received- bank 1 455 1 614 - -- subsidiaries (note 20) - - 167 206- other 38 23 - - Foreign currency gain 436 895 436 907

1 929 2 532 603 1 113

Finance costsInterest paid- bank 9 33 - - - other 25 48 - - - related companies (note 20) - 5 200 400

34 86 200 400

4. STAFF COSTS

Wages, salaries and other related costs 23 802 24 549 - -

5. INCOME TAX EXPENSE

Current income tax 5 498 6 667 - -Deferred income tax (2 438) (222) (2) 93

3 060 6 445 (2) 93Prioryear(over)/underprovision (2) (189) - 74Withholding tax on dividends (paid)/received (1467) (2799) 7050 21

Income tax 1 591 3 457 7 048 188

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5. INCOME TAX EXPENSE (continued)

ThetaxontheGroup’sprofitbeforetaxdiffersfromthetheoreticalamountthatwouldariseusingtheweighted average tax rate applicable to profits of the consolidated companies as follows:

GROUP COMPANY 2011 2010 2011 2010 P’000s P’000s P’000s P’000s

Profit before income tax 18 866 21 704 18 991 18 741

Incometaxat25% 4717 5426 4748 4685Withholding tax on dividend paid (1 467) (2 799) (1 467) (2 799)Withholding tax on dividend received - - 8 518 2 820Prioryear(over)/underprovision (2) 74 - 74Losses(generated)/utilised (732) 484 - 125Income not subject to income tax (109) (109) (6 085) (4 926)Expensesnotdeductiblefortaxpurposes 174 381 1310 209Impact of changes in tax rates enacted bybalance sheet date (821) - 24 -Others (169) - - -

Income tax 1 591 3 457 7 048 188

6. EARNINGS PER SHARE

EarningspersharearecalculatedbydividingtheprofitattributabletoequityholdersoftheGroupbythenumberofordinarysharesinissueduringtheyear.

GROUP 2011 2010

Totalordinarysharesinissueatyearend(000s) 89440 89440 Profit attributable to shareholders (P’000s) 17 275 18 984

Earnings per share (thebe) 19.31 21.22

7. DIVIDENDS

Assetoutinthedirectors’report,agrossdividendof13thebepersharehasbeenproposedtobepaidtotheshareholdersregisteredintherecordsofthecompanyasat10June2011.

Dividends paid during the year amounted to: GROUP COMPANY

2011 2010 2011 2010 P’000s P’000s P’000s P’000s

11 thebe per share (2010: 21 thebe)on 89 439 642 9 838 18 782 9 838 18 782Botswana withholding tax (1 467) (2 799) (1 467) (2 799)

8 371 15 983 8 371 15 983

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8. PROPERTY, PLANT AND EQUIPMENT Equipment Capital Freehold Leasehold and work in property property Aircraft vehicles progress Total P’000s P’000s P’000s P’000s P’000s P’000s GROUP Year ended 28 February 2011Opening net book amount 538 22 545 30 305 8 658 9 296 71 342 Exchangedifferenceon translation of foreign subsidiaries - 197 - 7 - 204Additions - 388 809 1561 1625 4383Transfersfromworkinprogress - - 9296 - (9296) -Disposals - - (774) (802) - (1 576)Assetsofdisposalgroup classified as held for sale - (1 202) - (158) - (1 360)Depreciation - (2 803) (2 286) (2 539) - (7 628)

Closing net book amount 538 19 125 37 350 6 727 1 625 65 365 At 28 February 2011Cost 538 38 552 42 044 27 645 1 625 110 404Accumulateddepreciation - (19427) (4694) (20918) - (45039)

Net book amount 538 19 125 37 350 6 727 1 625 65 365

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8. PROPERTY, PLANT AND EQUIPMENT (continued)

Equipment Capital Freehold Leasehold and work in property property Aircraft vehicles progress Total P’000s P’000s P’000s P’000s P’000s P’000s GROUP Year ended 28 February 2010Opening net book amount 538 21 307 33 984 10 638 1 334 67 801 Exchangedifferenceon translation of foreign subsidiaries - 562 - 118 - 680Additions - 2348 2558 1470 9296 15672Adjustments - 18 - (18) - -Transfersfromworkinprogress - 1274 - - (1274) -Disposals - (768) (4 530) (625) (60) (5 983)Depreciation - (2 196) (1 707) (2 925) - (6 828) Closing net book amount 538 22 545 30 305 8 658 9 296 71 342

At 28 February 2010Cost 538 39 649 32 974 29 201 9 296 111 658

Accumulateddepreciation - (17104) (2669) (20543) - (40316)

Net book amount 538 22 545 30 305 8 658 9 296 71 342

IntheopinionofthedirectorsthefairvalueoftheleaseholdpropertiesisP333106000(2010:P331654000). Detailsofleaseholdpropertyheldbywayofoperatingleasesaresetoutinnote22.N

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9. GOODWILL

GROUP 2009 P’000s

Opening net book amount 10 026 ArisingonacquisitionofKer&DowneyBotswana(Pty)Ltd 20310Writtenoffin2009 (30336)

Closing net book amount -

Goodwill was allocated for impairment testing to individual cash generating units as follows: CampKanana(exKer&DowneyBotswana) 6065CampOkuti(exKer&DowneyBotswana) 10944CampShinde(exKer&DowneyBotswana) 3301XuganaIslandLodge(Venstell(Pty)Ltd) 2082Chobe Game Lodge (Pty) Ltd 500 Desert&DeltaSafaris(Pty)Ltd 6500Other (individually insignificant) cash generating units 944 30 336

Atthefinancialyear-end,thegroupassessedtherecoverableamountofgoodwill,basedondiscount-edcashflowofestimatedfutureearningsanddeterminedthatgoodwillwasnotimpaired.Thegrouphadhowever,electedtowriteofftothestatementofcomprehensiveincomein2009,thetotalcarry-ingvalueofgoodwill.

2011 2010 P’000s P’000s At 28 February

Cost 30 336 30 336 Write-off (30336) (30336)

Net book amount - -

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10. LAND LEASE RIGHTS

GROUP P’000s

Year ended 28 February 2010Opening net book amount 51 848Amortisationcharge (5722)

Closing net book amount 46 126

At 28 February 2010Cost 57 470Accumulatedamortisation (11344) Closing net book amount 46 126

Year ended 28 February 2011Opening net book amount 46 126 Amortisationcharge (5734)

Closing net book amount 40 392

At 28 February 2011Cost 57 470 Accumulatedamortisation (17078) Closing net book amount 40 392

Landleaserightsareamortisedovertheunderlyingleaseperiodfortherespectiveconcessions. Land lease rights relate to leasehold concessions acquired through the group’s investments in Ker&DowneyBotswana(Pty)LtdandL.L.Tau(Pty)Ltdonwhichthefollowinglodgeandcampsareoperated: Accumulated Net Book Cost Amortisation Amount P ‘000s P ‘000s P ‘000sCamp Kanana 16 090 (4 498) 11 592Camp Okuti 30 004 (6 325) 23 679Camp Shinde 7 451 (6 044) 1 407LerooLaTauLodge 3925 (211) 3714

57 470 (17 078) 40 392

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11. INVESTMENT IN ASSOCIATE 2011 2010 P’000s P’000sGroupShares at cost 190 190 Loan to associate 7 439 7 003 Totalcostofinvestment 7629 7193Less:Accumulatedshareofassociatedcompanylosses (4042) (3386)Less: Impairment of investment in associate (3 587) -

- 3 807

Therearenosignificantcontingentliabilitiesrelatingtothegroup’sinterestintheassociate.

Accumulated share of associated companies’ results:Balance brought forward 3 386 2 998 Share of loss after tax 656 388

4 042 3 386

CompanyTotalcostofinvestment 7629 7193Impairment against investment (7 629) (2 998) - 4 195

TheloantotheassociateisdenominatedinNamibianDollars.Duetothedifficulttradingconditionsexperienced by the associate, no interest was charged on this loan.The balance on this loan as at 28February2011wasN$7821313(2010:N$7819798).Thisloanhasbeensubordinatedinfavourofallothercreditorsoftheassociate.

Theonlysignificantinvestmentinanactiveassociateis:

Name of Principal Place of Financial Effective interest Associate activity incorporation Year end in issued share capital 2011 2010 (%) (%)

LianshuluLodge Tourism Namibia 28February 44 44 (Pty) Ltd

Theresultsoftheunlistedassociateanditsassetsandliabilitiesareasfollows:

Assets Liabilities Revenues Loss before tax2011 (P’000s) 6 150 17 141 6 446 (1 490)2010 (P’000s) 7 739 16 683 8 494 (881)

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12. INVESTMENTS IN SUBSIDIARIES 2011 2010 P’000s P’000s

COMPANYOrdinary shares at cost 110 294 112 133Amountsduebysubsidiaries 6227 1264Less: Provision against investment in subsidiaries (2 735) (4 454) 113 786 108 943

Ordinary shares at costChobe Farms (Pty) Ltd 213 213Chobe Game Lodge (Pty) Ltd 875 875Desert and Delta Safaris (Pty) Ltd 9 525 9 525Ilombe Lodge and Fishing Camp Ltd 375 375Venstell (Pty) Ltd 1 325 3 164Caprivi Fly Fishing Safaris (Pty) Ltd 8 514 8 514 TheBookingsCompany(Pty)Ltd 22102 22102Ker and Downey Botswana (Pty) Ltd 67 365 67 365 110 294 112 133

Amounts due by/ (to) subsidiariesChobe Farms (Pty) Ltd 1 146 1 267Chobe Properties (Pty) Ltd 1 589 1 728Chobe Game Lodge (Pty) Ltd 416 (4 377)Ilombe Lodge and Fishing Camp Ltd 2 656 2 646ChobeExplorations(Pty)Ltd 420 - 6 227 1 264

Provision against investments in subsidiaries Caprivi Fly Fishing Safaris (Pty) Ltd (2 395) (2 395)Ilombe Lodge and Fishing Camp Ltd (340) (2 059)

(2 735) (4 454)

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12. INVESTMENT IN SUBSIDIARIES (continued)

Except as noted below, amounts due by subsidiaries are unsecured, bear interest at the Bank of Botswanarateperannumandhavenofixedrepaymentterms.

No interest was charged on certain loans/current accounts with subsidiaries that are experiencing difficulttradingconditions.Thevalueoftheseinterest-freeloanswasP2656154(2010:P2,646,000)attheyearenddate.Thecompanyhassubordinatedforthebenefitofothercreditors,bothpresentandfuture, so much of their claim against the subsidiary companies as would enable the claims of such othercreditorstobepaidinfull.

GROUP

2011 2010 P’000s P’000s

13. INVENTORY

Food and beverages 867 445Inventory for resale (curios) 791 792Packing materials and fuel 972 643Consumables 500 507 3 130 2 387

GROUP COMPANY

2011 2010 2011 2010 P’000’s P’000’s P’000’s P’000’s

14. TRADE AND OTHER RECEIVABLES

Tradereceivables 2848 2554 - -Other receivables 4 632 2 717 1 511 - Related parties (note 20) 447 - - -

7 927 5 271 1 511 -

15. STATED CAPITAL

Ordinary shares 102 899 102 899 102 899 102 899

Statedcapitalconsistsof89439642(2010:89439642)ordinarysharesofnoparvalue.N

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15. STATED CAPITAL (continued) GROUP 2011 2010 No. of No. of shares shares ’000s ’000s

Directors’ interests:Thedirectors,ontheyearenddate,held,directlyorindirectly, the following ordinary shares:

BEsterhuyse 18 18 ADChilisa 5207 5207JM Gibson 2 886 2 886BD Flatt 2 837 3 006DANganunu 5020 5010PM Van Riet Lowe 63 63AMWhitehouse(throughAngold(Pty)Ltd) 7627 7627

In addition to the shares held directly by JM Gibson, 26 950 406 (2010: 26 950 406) ordinary shares are heldbyGAir(Pty)LtdwhichisownedbytheBeaconTrust,adiscretionarytrustofwhichJMGibsonisapotentialdiscretionarybeneficiary.

BDFlattheld247080(2010:247080)sharesindirectlythroughJavelinServices(Pty)Ltd.

Unissued shares

Perordinaryresolutionpassedbyshareholderson10April2008,thedirectorsofthecompanyareem-powered to issue a further 2 000 000 ordinary shares in the company for such purposes and under such conditionsastheydeemfitforaperiodoffiveyearsfromthedateofthatresolution.Noneoftheseshareswereissuedduringtheyear.

2011 2010 % %

Shareholder spreadPublic shareholders 44 43Non-public shareholders and directors 56 57

100 100

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GROUP COMPANY 2011 2010 2011 2010 P’000s P’000s P’000s P’000s16. DEFERRED INCOME TAX

Thegrossmovementonthedeferredincome tax account is as follows: Beginning of the year 17 203 17 425 (185) (278)Incomestatement(credit)/charge (2438) (222) (2) 93 Endoftheyear 14 765 17 203 (187) (185)

Deferredincometaxbalancesrelate,inthemain,totemporarydifferencesonproperty,plantandequip-mentandlandleaserights.


17. BORROWINGS

Shareholders loans (note 20) 390 459 - 9Minority shareholders loans (note 20) 2 810 2 947 - - 3 200 3 406 - 9Less liabilities classified asheld for sale (2 410) - - -Less current portion included incurrent liabilities (790) (3 406) - (9) - - - - Shareholders loansTheGAir(Pty)Ltdloanisunsecured,bearsinterestofbetween0%and8.8%andhasnofixedrepaymentterms.

Minority shareholders loansTheloansfromminorityshareholders,whichhavebeendisclosedascurrentliabilities,areinterestfree,unsecuredandhavenofixedtermsofrepayment.

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GROUP COMPANY 2011 2010 2011 2010 Notes P’000s P’000s P’000s P’000s

18. TRADE AND OTHER PAYABLES

Tradepayables 4478 4226 304 -Other payables 12 796 11 237 262 357Related parties (note 20) 172 138 - 136

17 446 15 601 566 493

19. NET CASH FLOWS FROM OPERATING ACTIVITIES

Profit before finance costs,associated companies income and tax 21 214 19 684 18 588 18 028Depreciation 8 7 628 6 828 - -Amortisationofintangibleassets 10 5734 5722 - -Profit on disposals of property, plant and equipment (953) (564) - -Release of provision against investment in subsidiary - - (1 720) -Provision against investment in associate - - 4 630 -Arisingonconversionofinvestmentsinforeign subsidiaries (15) (681) - - (Increase)/decreaseininventory (743) 282 - -(Increase)/decreaseinreceivables and prepayments (2 974) 3 506 (1 511) 10Increase/(decrease)intradeandotherpayables 1 885 1 464 73 (143) 31 776 36 241 20 060 17 895

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GROUP COMPANY 2011 2010 2011 2010 P’000s P’000s P’000s P’000s20. RELATED PARTY TRANSACTIONS

Thefollowingtransactionstookplace with related parties during the year:

Interest paid Chobe Game Lodge (Pty) Ltd - - 200 395GAir(Pty)Ltd - 5 - 5

- 5 200 400 Interest received – subsidiariesChobe Properties (Pty) Ltd - - 167 206 Receivables from related partiesGAir(Pty)Ltd 1 - - -BrookValleyEnterprises(Pty)Ltd 394 - - -W D Smith 52 - - -

447 - - -

Loans from minority shareholders of:

Chobe Farms (Pty) Ltd 400 161 - -Chobe Dairies (Pty) Ltd - 259 - -Ilombe Lodge and Fishing Camp Ltd 2 410 2 527 - -

2 810 2 947 - -

Loans from shareholders:

GAir(Pty)Ltd 390 459 - 9

Payable to related partiesDue to directors 172 138 - 136

Directors remuneration – see note 2

GROUPKey management compensation 2011 2010 P’000s P’000sSalaries and other short-term employee benefits to executive directors

BEsterhuyse 454 -BD Flatt 552 530R Gerrard 525 -J Gibson 616 545

2 147 1 075

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21. ASSETS OF DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS

TheassetsandliabilitiesrelatedtothecompanyIlombeLodgeandFishingCampLtdhavebeenclas-sified as held for sale following the approval of the group’s board of directors to sell the company to its other50%shareholder.Thecompletiondateforthetransactionisexpectedtobe1stMarch2011.

GROUP 2011 2010 P’000s P’000s

Assets of disposal group classified as held for sale

Property plant and equipment (note 8) 1 360 -Other current assets 318 -

Total 1 678 -

Liabilities of disposal group classified as held for sale

Borrowings (note 17) 2 410 -Tradeandotherpayables 41 -

Total 2 451 -

Analysis of the result of discontinued operations

Revenue 117 118Expenses (223) (380)

Loss before tax of discontinued operation (106) (262) Income tax - -

Loss after tax of discontinued operation (106) (262)

Operating cash flows 50 (94) Investing cash flows (92) 433Financing cash flows 132 (389)

Total cash flows 90 (50)

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22. OPERATING LEASES

The group holds the following operating leases:

Chobe Game Lodge (Proprietary) Limited

AgreementbetweentheGovernmentofBotswana,ChobeGameLodge(Pty)LtdandChobeProperties(Pty)Ltddated28July1983forleaseoverAreaNo.8-RO,representing42AcresintheChobeNationalPark.Leaseperiodof30yearsexpiring28July2013.Thereafterthereisanoptiontorenewforafurthertwentyyearsexpiring28July2033.Annualrent:Thegreaterof:

1. 0.5%ofChobeGameLodge(Pty)Ltd’sgrossrevenue,or2. P6000plusthecumulativenationalinflationratefrom28July1983

Currentlythe0.5%ofgrossrevenuecalculationisgreater.Rentinrespectoftheyearended28February2011wasP120999(2010:P103671).

Desert and Delta Safaris (Proprietary) Limited Camp Moremi: AreaMGR1 – 15 year leasewithTawana Land Board commenced 1 January

1997.AnnualfixedleaserentalsamounttoP200000anda4%resourceroyaltyongrossincomegeneratedfromtourismrelatedactivity.

Camp Okavango: AreaNG21 – 15 year leasewithTawana LandBoard commenced 1 January1998.AnnualfixedleaserentalsamounttoP200000anda4%resourceroyaltyongrossincomegeneratedfromtourismrelatedactivity.

Savuti Safari Lodge: AreaCH/3–15year leasewiththeGovernmentoftheRepublicofBotswanacommenced1January2007.AnnualfixedrentalsamounttoP97244anda4%resourceroyaltyongrossincomegeneratedfromtourismrelatedactivity.

Xugana Island Lodge: Area NG 21 – renegotiated 15 year lease with the Tawana Land Board

commencing on 1 January 2004. Initial lease rent amounted to P200 000 escalatingat5%eachyearanda4%resourceroyaltyongrossincomegeneratedfromtourismrelatedactivity.

DesertandDeltaSafaris (Proprietary)Limitedhasa leaseoverTribalLot851,MaunwiththeTawanaLandBoardcommencing3March1998 for50yearswithanoption to renew fora further50years. AnnualrentalsamounttoP1114.

L.L. Tau (Pty) Ltd

LerolatauLodge:AreaatKhumagaintheBangwatoTribalTerritory–Leasefor50yearswithNgwatoLandBoardcommencingon27May1996.Annualfixed leaserentalsamountofP25000escalatingeveryfifthanniversaryfollowingreviewbytherespectiveparties.

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22. OPERATING LEASES (continued)

Ker and Downey Botswana (Proprietary Limited

Camp Kanana: Area NG/27A – Lease renewed for 15 years with Tawana Land Board commenced 1January2003.AnnualfixedleaserentalsamounttoP200000escalatingat5%perannumanda4%resourceroyaltyongrossincomegeneratedfromtourismactivities.

Camp Shinde: Area NG21 – Lease renewed for 10 years with Tawana Land Board commenced 1January2002.AnnualfixedleaserentalsamounttoP180000escalatingat5%perannumanda4%resourceroyaltyongrossincomegeneratedfromtourismactivities.

Camp Okuti: Area NG28 – Lease for 15 years awarded by Tawana Land Board commenced on 15May 2007. Annual fixed lease rentals amount to P200 000 escalating at 5% perannumanda4%resourceroyaltyongrossincomegeneratedfromtourismactivities.

In addition Ker and Downey Botswana (Proprietary) Limited has a lease over Government camp, BatawanawiththeTawanaLandBoardcommencing2June1998for50yearswithanoptiontorenewforafurther50years. AnnualrentalsamounttoP161.40.Therentpayable issubjecttoreviewaftereveryfiveyearsfromthedateofgrant.

Caprivi Fly Fishing Safaris (Proprietary) Limited (Chobe Savanna Lodge)

Permission to occupy granted by the Minister of Lands, Resettlement and Rehabilitation of Namibia to Caprivi Fly Fishing Safaris (Proprietary) Limited, for 10 hectares of land at Maliazo in the Caprivi Region, dated14May2002,withnostatedterminationdate.RentalofN$480perannum.

Caprivi Fly Fishing Safaris (Proprietary Limited (Kabulabula Lease)

Permission to occupy granted by the Minister of Lands, Resettlement and Rehabilitation of Namibia toAndrePietervanAardt,tradingasCapriviFlyFishingSafaris(Proprietary)Limited,for10hectaresoflandatKabulabulaintheCapriviRegion,dated27April1998,withnostatedterminationdate.Rentalof N$480perannum.

Chobe Farms (Proprietary) Limited

AgreementbetweentheChobeLandBoardandChobeFarms(Pty)Ltdfortheleaseoverapproximately342hectaresknownasNyungweValleyintheChobeTribalAreatobeusedexclusivelyforarablefarmingpurposes.Eitherpartycanterminatetheleaseonthegivingofsixmonths’notice.Theleasehasbeenrenewedforafurtherperiodof25yearsfrom1March2006.Therental,whichisreviewedeveryfiveyears,ispresentlyP1705perannum.

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22. OPERATING LEASES (continued)

Ilombe Lodge and Fishing Camp Limited

Agreement between the Government of Zambia and Ilombe Lodge and Fishing Camp Limited forthe leaseover11.8750hectaresbeinglandonlots14385/M,14386/Mand14387/MintheSouthernProvinceofZambia.Theleasecommencedon1February2001foraperiodof99yearsatanannualrentalofK88250,K22750andK27750forthelotsrespectively.

Hangar Site in Kasane

AgreementbetweentheGovernmentofBotswanaandChobeExploration(Proprietary)Limited,fortheleaseofHangarSitenumberoneatKasaneAirport,measuring2500meters,commencing1March1999foraperiodof15years,withanoptionforrenewalforaperiodtobeagreedbetweentheparties.RentalisP3000perannum.

Improvements on leasehold properties are summarised as follows:

Directors’ valuation P’000s

Chobe Properties (Pty) Ltd- Chobe Game Lodge 106 795

Desert and Delta Safaris (Pty) Ltd - Camp Moremi 37 347- Camp Okavango 38 696- Savute Safari Lodge 37 636-Triballot851,Maun 3675-XuganaCamp 26251- Leroo la tau Lodge 13 615

Ker & Downey Botswana (Pty) Ltd- Camp Shindi 21 878- Camp Okuti 14 459- Camp Kanana 17 686-Triballot1365,Maun 1300

Caprivi Fly Fishing Safaris (Pty) Ltd- Chobe Savanna Lodge 5 076

Chobe Farms (Pty) Ltd - Nyungwe Valley 6 000

Ilombe Lodge and Fishing Camp Ltd - Sekoma Island Lodge 2 692

333 106

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22. OPERATING LEASES (continued) Thefutureamountpayableontheaboveoperatingleasecommitmentscannotbedeterminedduetothenatureoftheleaseagreements.

23. PENSION FUND

Thegrouphasnopension fundarrangements for itsemployees. In termsofBotswanaLabourLawLegislation,severancepayisdueuponemploymenttermination.

24. CONTINGENT LIABILITIES

ThecompanyhasjointlyguaranteedtheoverdraftfacilitiesofLianshuluLodge(Pty)Ltd,anassociateincorporatedinNamibia.ThedrawndownoverdraftattheyearenddatewasP849405-N$892895(2010:P708652-N$791281).

25. COMMITMENTS

Capital commitments

Capital commitments contracted, but not paid, for as at the balance sheet date is as follows:


Lodge refurbishments 808 - - -

Operating lease commitments (note 22).

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Number of shares %

TOP TEN SHAREHOLDERS AT 28 FEBRUARY 2011

ADChilisa 5207828 6Angold(Pty)Ltd 7627749 9SCBN(Pty)LtdFAM3582376 15037657 17SCBN(Pty)LtdRE:FAM201/010 2937028 3B D Flatt 2 837 556 3GAir(Pty)Ltd 26950406 30GHHaniger 5691495 6J D M Investments (Pty) Ltd 5 000 000 6J M Gibson 2 885 571 3StanbicNomineesBotswanaRE:BIFMBPOPF 1515448 2 TOP TEN SHAREHOLDERS AT 28 FEBRUARY 2010

ADChilisa 5207828 6Angold(Pty)Ltd 7627749 9BarclaysBotswanaNomineesRE:FAMBPOPF 15037657 17BarclaysBotswanaNomineesRE:FAM201/010 2937028 3B D Flatt 3 006 409 3GAir(Pty)Ltd 26950406 30GHHaniger 5691495 6J D M Investments (Pty) Ltd 5 000 000 6 J M Gibson 2 885 571 3 StanbicNomineesBotswanaRE:BIFMBPOPF 1515448 2

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Noticeisherebygiventhatthe2011annualgeneralmeetingofChobeHoldingsLimitedwillbeheldattheMondior Summit, Gaborone, on Wednesday 27 July 2011 at 5 pm for the following purposes:

1. Toreadthenoticeconveningthemeeting2. Toreceive,considerandadopttheauditedfinancialstatementsfortheyearended

28February2011togetherwiththedirectors’andauditor’sreportsthereon.3. ToapprovethedistributionofadividendasrecommendedbytheDirectors.4. Tore-electasdirectorsMessrsA.Chilisa,K.LedimoandP.VanRietLowewhoretirein

accordancewiththeArticlesofAssociationand,beingeligible,offerthemselvesfor re-election.

5. ToratifytheappointmentofMrJ.A.BescobytotheBoard.6. Toapprovetheremunerationofthedirectorsfortheyearended28February2011.7. Toappointauditorsfortheensuingyear.8. ToapprovetheremunerationforPricewaterhouseCoopersfortheyearended

28February2011.9. Totransactsuchotherbusinessasmaybetransactedatanannualgeneralmeeting.

In the event that members wish to nominate any person(s) as directors or auditors other than one of the directors retiring or incumbent auditors, they should deliver to the company secretary, not less than nor more than 14 clear days before the date of the meeting, a nomination signed by a member qualified to attend and vote at the meeting with member qualified to attend and vote at the meeting with notice by the nominatedpersonsthattheyarewillingtobeelectedasdirectorsorauditors,asthecasemaybe.

Amembertoattendandvotemayappointaproxytoattendandvoteonhis/herbehalfandsuchproxyneednotalsobeamemberoftheCompany.TheinstructionsappointingsuchaproxymustbedepositedattheregisteredofficeoftheCompanynotlessthan48hoursbeforethemeeting.

30 June 2011 By order of the Board

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For use at the annual general meeting of ordinary shareholders of the Company to be held at the Mondior Summit,Gaborone,onWednesday27July2011.

I/We

TheHolderof ordinaryshares,beingamemberoftheCompanyand entitled to vote, do hereby appoint (see note 1):

1 orfailinghim/her

2 orfailinghim/her

3 orfailinghim/her

THE CHAIRMAN OF THE ANNUAL GENERAL MEETINGasmy/ourproxytoactforme/usattheannualgeneralmeetingwhichwillbeheldattheMondiorSummit,Gaborone, on Wednesday 27 July 2011 for the purpose of considering and, if deemed fit, passing, with or without modification the resolutions to be proposed thereat and at each adjournment thereof and to vote ontheresolutionsinrespectoftheordinarysharesregisteredinmy/ourname/swiththefollowinginstruc-tions (see note 2):

Number of votes (one vote per ordinary share)

In favour of Against Abstain

Adoptionoftheauditedfinancialstatements

Approvalofrecommendeddividend

Re-electionofAChilisa

Re-election of K Ledimo

Re-election of P van Riet-Lowe

ElectionofJBescoby

Approvalofdirectors’remuneration

Appointmentofauditors

Approvalofauditors’remuneration Insert the number of votes in the relevant spaces above according to how you wish your votes to be cast.

Signed at on the day of 2011

Signature

Assistedbyme(whereapplicable)

Eachmemberisentitledtoappointoneormoreproxies(noneofwhomneedtobeamemberofthecompany)toattend,speak,andonapoll,voteinplaceofthatmemberattheextraordinarygeneralmeeting.

Pleasereadthenotesonthereversehereof.

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1. Amembermayinsertthenameoftheproxyorthenamesoftwoalternativeproxiesofthemember’schoice in the spaces provided, with or without deleting “the Chairman of the annual general meeting”, butanysuchdeletionmustbe initialedbythemember. Thepersonwhosenamestandsfirstontheform of proxy and who is present at the annual general meeting will be entitled to act as a proxy to the exclusionofthosewhosenamesfollow.

2. Insertthenumberofvotesintherelevantspacesoverleafaccordingtohowyouwishyourvotestobecast.Failuretocomplywiththeabovewillbedeemedtoauthorisetheproxytovoteortoabstainfromvotingattheannualgeneralmeetingashe/shedeemsfitinrespectofallthemember’svotesexercisablethereat.Amemberortheproxyisnotobligedtouseallthevotesexercisablebythemembersofthetotaloftheexercisablebythememberorbytheproxy.

3. Forms of proxymust be received at the Company’s registered office by not later than 05.00pm on Monday25July2011.

4. Thecompletionandlodgingofthisformofproxywillnotprecludetherelevantmemberfromattendingthe annual general meeting and speaking and voting in person thereat to the exclusion of any proxy appointedintermshereof.

5. Anyalterationorcorrectionmadetothisformofproxymustbeinitialedbythesignatory/ies.Aminormustbeassistedbyhis/herparent/guardianunlesstherelevantdocumentsestablishinghis/herlegalcapacityareproducedorhavebeenregisteredbythetransfersecretariesofthecompany.

6. Thechairmanoftheannualgeneralmeetingmayrejectaformofproxyoracceptanysuchformwhichiscompletedand/orreceivedotherthaninaccordancewiththesenotesifheissatisfiedastothemannerinwhichthememberwishestovote.

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