africa israel investments ltd. - afigroup-global.com docs... · current assets cash and cash ......

1

Africa Israel Investments Ltd.

Separate-Company Financial Information

At December 31, 2012

1


Separate Company Financial Information


Contents

Page

Special Auditors’ Report on the Separate-Company Financial Information 2

Separate-Company Statements of Financial Position 3 – 4

Separate-Company Statements of Income 5

Separate-Company Statements of Comprehensive Income 6

Separate-Company Statements of Cash Flows 7 – 8

Additional Information with respect to the Separate-Company Financial Statements 9

2

To:

The shareholders of Africa Israel Investments Ltd

Dear Sirs,

Subject: Special Auditors’ Report on the Separate Financial Data according to Regulation 9C of the

Securities Regulations (Periodic and Immediate Reports), 1970.

We have audited the separate financial data presented in accordance with Regulation 9C of the Securities

Regulations (Periodic and Immediate Reports), 1970, of Africa Israel Investments Ltd. (hereinafter – “the

Company”) as at December 31, 2012 and 2011 and for each of the three years, the last of which ended

December 31, 2012, and which are included in the Company’s Periodic Report. The separate financial data

are the responsibility of the Company’s Board of Directors and of its Management. Our responsibility is to

express an opinion on the separate financial data based on our audits.

The data included in the separate financial data that relates to the carrying value in the books of the

investments and the Company’s share in the income of investee companies, is based on financial statements

some of which were audited by other auditors and our opinion, to the extent it relates to the amounts

included in respect of those companies, is based on reports of the other auditors.

We conducted our audits in accordance with generally accepted auditing standards in Israel. Such standards

require that we plan and perform the audits to obtain reasonable assurance that the separate financial data is

free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts

and disclosures in the separate financial data. An audit also includes assessing the accounting principles that

were used in preparing the separate financial data and the significant estimates made by the Company’s

Board of Directors and by its Management, as well as evaluating the separate financial data presentation.

We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audit and on the reports of the other auditors, the separate financial data has

been prepared, in all material respects, in accordance with Regulation 9C of the Securities Regulations

(Periodic and Immediate Reports), 1970.

Somekh Chaikin Breitman Almagor Zohar & Co.

Certified Public Accountants (Isr.) Certified Public Accountants (Isr.)

March 21, 2013

3


Separate-Company Statements of Financial Position

In Thousands of New Israeli Shekels

At December 31

2012 2011

Current assets

Cash and cash equivalents 708,403 143,730

Short-term investments – 7,501

Marketable securities 17,122 141,086

Trade receivables 184 203

Other receivables and debit balances 10,835 47,010

Receivables – investee companies 31,341 34,632

Inventory of buildings held for sale 17,811 48,616

Assets held for sale – 67,853

785,696 490,631 ------------- -------------

Non-current assets

Investments in investee companies 6,202,497 *,**6,733,630

Loans to investee companies 584,307 **756,199

Property, plant and equipment 915 1,833

Investment property 92,230 93,065

Investment property under construction – 648

Long-term loans, investments and other debit balances 157 245

Inventory of real estate 1,812 2,205

Intangible assets 1,619 2,151

6,883,537 7,589,976 ------------- -------------

7,669,233 8,080,607

* Restated due to retroactive application of an amendment to an accounting standard – see Note 2C below.

** Reclassified – see Note 3 below.

____________________________ ________________________ _________________________

Lev Leviev

Chairman of the Board of Directors

Avraham Novogrocki

CEO

Menashe Sagiv

CFO

Approval date of the financial statements: March 21, 2013

The additional information attached to the separate-company information is an integral part thereof.

4


Separate-Company Statements of Financial Position


At December 31

2012 2011

Current liabilities

Debentures 332,809 –

Credit from banks 115,910 57,597

Contractors and suppliers 451 10,052

Other payables and credit balances, including financial derivatives 53,241 93,013

Payables – investee companies 164,713 22,688

Advances from customers 22,217 31,039

Income taxes payable 440 964

Provisions 31,787 56,584

721,568 271,937 ------------- -------------

Non-current liabilities

Loans from investee companies 271,622 **146,579

Debentures 2,574,029 2,723,132

Liabilities to banks 290,894 400,576

Excess of losses over investments in investee companies 1,945 **8,090

Other liabilities 13,099 15,733

Liability for deferred taxes 26,883 **7,112

Employee benefits 1,103 1,105

3,179,575 3,302,327 ------------- -------------

Equity

Share capital 377,746 376,147

Premium on shares 3,976,642 3,764,445

Capital reserves (1,866,026) (1,910,617)

Retained earnings 1,279,728 *2,276,368

Total equity attributed to the holders of the Company’s equity rights 3,768,090 4,506,343 ------------- -------------

Total liabilities equity 7,669,233 8,080,607




5


Separate-Company Statements of Income


For the Year Ended December 31

2012 2011 2010

Revenues

Construction and real estate transactions 56,954 105,136 111,434

Rental and operation of properties 5,110 5,145 6,326

Share in income of investee companies accounted for using

the equity method of accounting, net – *,**1,863,721 –

Increase in fair value of investment property, net – 1,235 4,081

Other income 112,869 **151,891 444,995

174,933 2,127,128 566,836 ------------- ------------- ------------- Cost and expenses

Construction and real estate transactions 39,631 **75,621 75,041

Maintenance, supervision and management of real

estate and properties 606 438 1,279

Share in losses of investee companies accounted for using

the equity method of accounting, net 1,957,971 – *685,743

Decline in fair value of investment property, net 866 – –

Administrative and general expenses 38,865 **47,322 58,091

Amortization of intangible assets and other expenses 25,459 36,252 90,628

2,063,398 159,633 910,782 ------------- ------------- -------------

Operating income (loss) (1,888,465) 1,967,495 (343,946) ------------- ------------- -------------

Financing expenses (449,756) (1,819,219) (619,296)

Financing income 1,356,133 177,608 2,466,009

Financing income (expenses), net 906,377 (1,641,611) 1,846,713 ------------- ------------- -------------

Income (loss) before taxes on income (982,088) 325,884 1,502,767

Taxes on income (20,539) **(7,112) –

Income (loss) from continuing operations (1,002,627) 318,772 1,502,767

Income from discontinued operations – – 199,979

Income (loss) for the year attributed to the owners of

the Company (1,002,627) 318,772 1,702,746




6


Separate-Company Statements of Comprehensive Income



2012 2011 2010

Income (loss) for the year (1,002,627) *318,772 *1,702,746

Components of other comprehensive income (loss)

Foreign currency translation differences in respect of

foreign activities and other reserves in respect of investee

companies 6,801 295,287 (415,325)

Net change in fair value of financial assets available for sale,

net of tax – 64,320 3,694

Income (loss) from decline in value of financial assets

available for

sale transferred to the statement of income, net of tax – (68,014) –

Total comprehensive income (loss) for the year (995,826) 610,365 1,291,115



7


Separate-Company Statements of Cash Flows



2012 2011 2010

Cash flows from operating activities

Income (loss) for the year attributed to the owners of the

Company (1,002,627) *318,772 *1,702,746

Adjustments:

Depreciation and amortization 2,606 2,770 2,750

Decrease (increase) in value of investments, net 12,065 20,135 (176)

Gain on sale of investee companies (97,009) (3,335) (614,027)

Change in fair value of investment property 866 (1,235) (4,081)

Financing expenses (income), net (853,494) 1,710,422 (1,833,759)

Company’s share in results of investee companies, net 1,957,971 *,**(1,863,721) *743,073

Marketable securities, net (54,453) (70,405) 33,342

Share-based payment transactions (40) 3,525 4,502

Taxes on income 20,539 **7,112 –

Change in inventory of buildings held for sale 26,716 36,209 5,942

Change in inventory of real estate 393 32,613 2,148

Change in long-term debt – (107,866) –

Change in trade receivables and other receivables and debits 5,456 12,839 158,167

Change in advance deposits from customers (8,822) (43,727) 52,357

Change in trade payables and other payables and credits (16,324) (6,738) (773)

Change in provisions and employee benefits (5,629) (13,471) (29,872)

Income taxes paid, net (1,081) (752) (637)

Net cash provided by (used in) operating activities before

transactions with investee companies (12,867) 33,147 221,702

Net cash from operating activities in respect of transactions

with investee companies (5,834) 1,076,157 (817,871)

Net cash provided by (used in) operating activities (18,701) 1,109,304 (596,169) ------------- ------------- -------------




8


Separate-Company Statements of Cash Flows



2012 2011 2010

Cash flows from investing activities

Interest received 16,276 4,045 2,436

Dividends received 15,169 28,898 –

Proceeds from sale of investee companies 140,193 193,129 290,742

Repayment of long-term deposits and loans 27,200 – –

Investment in long-term deposits and loans – – (624)

Acquisition of property, plant and equipment (129) (1,108) (356)

Investment in investee company accounted for using the

equity method of accounting (16,515) – –

Acquisition of intangible assets (800) (1,006) (1,820)

Acquisition of investment property (51) – (3,384)

Proceeds from sale of investment property – 4,228 –

Investment in investment property under construction – (76) (41)

Short-term investments, net 3,715 (199) 28,613

Acquisition of marketable securities – – (54,420)

Sale of marketable securities 178,417 123,569 58,860

363,475 351,480 320,006

Net cash from investing activities in respect of transactions

with investee companies 99,990 150,041 583,856

Net cash provided by investing activities 463,465 501,521 903,862 ------------- ------------- -------------

Cash flows from financing activities

Repayment of loans and debentures (57,969) (1,143,326) (444,089)

Receipt of long-term loans and liabilities 6,200 9,035 19,275

Proceeds from issuance of share capital in the Company 213,796 213,094 380,559

Acquisition of non-controlling interests (60,605) (288,414) –

Short-term credit, net – (2,200) (312)

Interest paid (253,749) (289,001) (242,987)

(152,327) (1,500,812) (287,554)

Net cash from financing activities in respect of transactions

with investee companies 277,709 – –

Net cash provided by (used in) financing activities 125,382 (1,500,812) (287,554) ------------- ------------- -------------

Increase in cash and cash equivalents 570,146 110,013 20,139

Cash and cash equivalents at the beginning of the year 143,730 29,222 9,083

Effect of exchange rate fluctuations on balances of cash and

cash equivalents (5,473) 4,495 –

Cash and cash equivalents at the end of the year 708,403 143,730 29,222


9


Additional Information to the Separate-Company Financial Information


Note 1 – General

A. Set forth below is financial data taken from the Group’s financial statements as at

December 31, 2012 (hereinafter – “the Consolidated Financial Statements”), which are

issued as part of the Periodic Report and that relate to the Company itself (hereinafter –

“the Separate-Company Financial Information”), presented in accordance with

Regulation 9C (hereinafter – “the Regulation”) and the Tenth Addendum to the Securities

Regulations (hereinafter – “Periodic and Immediate Reports”), 2010 (hereinafter – “the

Tenth Addendum”) regarding Separate-Company Financial Information of a Company.

The Separate-Company Financial Information is to be read together with the Consolidated

Financial Statements.

In the Separate-Company Financial Information, the following terms shall have the

meaning as set forth below:

(1) The Company – Africa Israel Investments Ltd.

(2) Subsidiaries – companies, including a partnership, the financial statements of which

are fully consolidated, directly or indirectly, with those of the Company.

(2) Investee Companies – subsidiaries and companies, including a partnership or a joint

venture, the Company’s investment in which is included, directly or indirectly, in the

financial statements based on the equity method of accounting.

B. Regarding the impact of the global financial crisis on the Group’s activities – see Note 1B

to the Consolidated Financial Statements.

C. For details regarding the Company’s exchange tender offer from December 2012 – see

Note 22E(1)(c) to the Consolidated Financial Statements.

D. For details regarding a plan for acquisition by the Company of its own debentures

(Series Z) – see Note 22E(1)(b) to the Consolidated Financial Statements.

Note 2 – Significant Accounting Policies applied in the Separate-Company Information

The accounting policies detailed in the Consolidated Financial Statements were applied for

purposes of presentation of the separate-company financial information, including the manner in

which the financial information was classified as part of the Consolidated Financial Statements,

with the necessary modifications as set forth below:

A. Presentation of the financial data

(1) Data with respect to the financial position

This data includes information regarding the amounts of the assets and liabilities

included the Consolidated Financial Statements relating to the Company itself

(excluding with respect to investee companies), while providing detail based on the

types of assets and liabilities. In addition, included as part of this data is information

relating to the net amount, based on the Consolidated Financial Statements,

attributable to the Company’s shareholders, of the amount of the assets less the

amount of the liabilities in connection with investee companies, including goodwill.

10




Note 2 – Significant Accounting Policies applied in the Separate-Company Information (Cont.)

A. Presentation of the financial data (Cont.)

(2) Data with respect to the comprehensive income

This data includes information regarding the amounts of the revenues and expenses

broken down between income or loss and other comprehensive income attributable to

the Company itself (excluding with respect to investee companies), while providing

detail based on the types of revenues and expenses. In addition, the data includes

information regarding the net amount, based on the Consolidated Financial

Statements, attributable to the Company’s shareholders, of the amount of the revenues

less the amount of the expenses in respect of activities with investee companies,

including impairment in value of goodwill, impairment in value of an investment in an

associated company or cancellation thereof, and impairment in value of an investment

in a jointly-controlled company accounted for using the equity method of accounting

or cancellation thereof.

(3) Data with respect to the cash flows

This data includes detail regarding the amounts of the cash flows included in the

Consolidated Financial Statements attributable to the Company (excluding with

respect to investee companies), which are taken from the consolidated statement of

cash flows, broken down by current operating activities, investing activities, and

financing activities, along with detail of each of the above-mentioned categories. Cash

flows from current operating activities, investing activities, and financing activities in

respect of transactions with investee companies is presented separately, on a net basis,

as part of the related activities, based on the nature of the transaction.

(4) Management fees from investee companies, in the amount of about NIS 5,581

thousand and about NIS 3,623 thousand for the years ended December 31, 2012

and 2011, respectively, in respect of their participation in the headquarters expenses,

were offset against the Company’s administrative and general expense.

B. Transactions between the Company and investee companies

(1) Presentation

The reciprocal balances in the Group of revenues and expenses deriving from

reciprocal transactions, which were eliminated as part of preparation of the

Consolidated Financial Statements, have been presented separately from the balance

in respect of investee companies and the income in respect of investee companies,

together with similar balances with third parties.

Unrealized income and expenses deriving from transactions between the Company

and its investee companies, were presented as part of the balance in respect of

investee companies and as part of the income in respect of investee companies.

(2) Measurement

Transactions executed between the Company and its subsidiaries were measured in

accordance with the recognition and measurement principles provided in International

Financial Reporting Standards (IFRS), which outline the accounting treatment of

similar transactions executed with third parties.

11





C. Retroactive application of accounting principles

Commencing from January 1, 2012, the Group applies the Amendment to IAS 12 “Taxes

on Income, Deferred Taxes in respect of Investment” (hereinafter – “the Amendment”).

Pursuant to the Amendment, a rebuttable presumption was provided whereby deferred

taxes in respect of investment properties measured based on the fair value model in

accordance with the provisions of IAS 40 “Investment Property” will be calculated under

the assumption that the manner of recovery of the book value of investment properties will

be solely by sale. Nonetheless, the presumption may be rebutted in cases where the

investment properties are depreciable and the purpose of the Company’s business model in

holding the property is essentially to consume all the economic benefits embedded in the

property over its life.

Adoption of the Amendment was made retroactively so that it conforms to the holding as

stated above, in light of the Group’s business model with respect to investment properties.

Set forth below is data regarding the impact of the retroactive application on the relevant

categories:

(1) Impact on the statement of financial position:

As at December 31, 2011

Impact As presented

As of the in these

previously retroactive financial

reported application statements*

In thousands of NIS

Investments in investee companies 8,868,104 11,004 8,879,108

Balance of retained earnings (2,265,364) (11,004) (2,276,368)


Impact As presented

As of the in these



In thousands of NIS


Balance of retained earnings (1,955,851) (7,316) (1,963,167)

As at January 1, 2010

Impact As presented

As of the in these



In thousands of NIS


Balance of retained earnings (249,293) (6,626) (255,919)

* Prior to impact of the restatement – Note 3 below

12





C. Retroactive application of accounting principles (Cont.)

(2) Impact on the statement of comprehensive income:

For the Year Ended December 31, 2011

Impact As presented

As of the in these



In thousands of NIS

Income from investee companies, net 1,852,921 3,688 1,856,609

Net income for the year attributable to

the Company’s owners 315,084 3,688 318,772

Comprehensive income for the year 606,677 3,688 610,365

For the Year Ended December 31, 2010

Impact As presented

As of the in these



In thousands of NIS

Income from investee companies, net (686,433) 690 (685,743)

Net income for the year attributable to

the Company’s owners 1,702,056 690 1,702,746

Comprehensive income for the year 1,290,425 690 1,291,115

* Prior to impact of the restatement – Note 3 below

Note 3 – Basis of Preparation of the Financial Statements

Change in classification

A. The Company reclassified asset and liability items in the statement of financial position as

at December 31, 2011 in amounts that are not significant. In addition, the Company

reclassified various items in the statement of income for the years ended December 31,

2011 and December 31, 2010 in amounts that are not significant.

B. During the third quarter of 2012, the Company changed classification of the excess losses

of investments in investee companies and loans from investee companies presented as a

long-term liability, to investments in investee companies and loans to investee companies

presented as a non-current asset, in order to reflect the balance of the net investment after

offset of the balance of the loans to the investee companies and the excess losses on the

investments in the investee companies. The comparative figures were reclassified in the

aggregate amount of NIS 3,056,231 thousand as at December 31, 2011.

13




Note 4 – Cash and Cash Equivalents

At December 31

2012 2011

In Thousands of NIS

Cash and cash equivalents denominated in shekels 653,894 139,182

Cash and cash equivalents linked to the dollar 54,509 4,534

Cash and cash equivalents linked to other currencies – 14

Total cash and cash equivalents 708,403 143,730

Note 5 – Financial Instruments

A. Trade and other receivables


Linked

Unlinked shekel Total


Current assets*

Trade receivables – 184 184

Receivables – investee companies 6,774 24,567 31,341

Other receivables and debit balances,

including financial derivatives 9,228 – 9,228

Total 16,002 24,751 40,753


Linked



Current assets*

Trade receivables – 203 203

Receivables – investee companies (mainly

bearing interest of 3.8%) 34,632 – 34,632

Other receivables and debit balances,

including financial derivatives 25,100 21,910 47,010

Total 59,732 22,113 81,845

* Trade and other receivables classified as current assets from realizations as part of the

Company’s operating turnover.

14




Note 5 – Financial Instruments (Cont.)

B. Other investments, including derivatives

1. Breakdown of financial assets based on groups

At December 31

2012 2011

In Thousands of NIS

Current investments

Investments held for trade 17,122 141,086

Other investments at amortized cost – 7,501

17,122 148,587

Non-current investments

Other investments at amortized cost 157 245

2. Details regarding linkage based on types of investments

(a) Financial assets measured at fair value through the statement of income,

excluding derivatives

Non-monetary

financial instruments

At December 31

2012 2011

In Thousands of NIS

Shares 17,122 141,086

(b) Loans and receivables


CPI-linked



Deposits – 157 157


CPI-linked



Deposits 7,501 245 7,746

15





B. Other investments, including derivatives

3. Analysis of the projected realization dates


In Thousands of NIS

2013 –

2014 –

2015 –

Not yet determined 157

157

16





C. Loans and Credit

This section provides information regarding the contractual terms of the Company’s loans

and credit bearing interest measured at amortized cost.

Details regarding interest and linkage


Unlinked Unlinked Linked

Book shekel shekel shekel

Effective Interest Rate value 0% 2%–5.5% 0%–13.84% Total


Loans and credit as part

of current liabilities

Credit from others:

Short-term loans 800 – – 800 800

Credit from banks:

Overdrafts 397 397 – – 397

Current maturities of

long-term liabilities:


debentures 332,809 – – 332,809 332,809


long-term loans 115,513 – 115,513 – 115,513

Total current liabilities

and credit 449,519 397 115,513 333,609 449,519




Effective Interest Rate value 0% 2%–5.5% 0%–13.84% Total



of non-current liabilities

Debentures 2,574,029 – – 2,574,029 2,574,029

Credit from banks 290,894 – 290,894 – 290,894

Other liabilities 1,837 – 327 1,510 1,837

Total non-current

liabilities and credit 2,866,760 – 291,221 2,575,539 2,866,760

17





C. Loans and Credit (Cont.)

Details regarding interest and linkage (Cont.)




Effective Interest Rate value 0% 3%–6.4% 13.84% Total



of current liabilities

Credit from others:

Short-term loans 940 – – 940 940

Credit from banks:


long-term loans 57,597 – 57,597 – 57,597

Total current liabilities

and credit 58,537 – 57,597 940 58,537




Effective Interest Rate value 0% 3%–6.4% 13.84% Total



of non-current liabilities

Debentures 2,723,132 – – 2,723,132 2,723,132

Credit from banks 400,576 – 400,576 – 400,576

Financial guarantees 1,019 1,019 – – 1,019

Other liabilities 3,452 322 – 3,130 3,452

Total non-current

liabilities 3,128,179 1,341 400,576 2,726,262 3,128,179

For information regarding loans and credit issued by the Company during the period

and information regarding contractual limitations and financial covenants borne by

the Company – see Note 22 to the Consolidated Financial Statements in connection

with loans and credit.

18





D. Trade Payables

At December 31, 2012 At December 31, 2011

CPI CPI

Unlinked Linked Unlinked Linked

shekel shekel Total shekel shekel Total


Contractors and

suppliers 451 – 451 10,052 – 10,052

Payables – investee

companies 164,713 – 164,713 22,688 – 22,688

Other payables 14,325 28,310 42,635 65,106 27,907 93,013

179,489 28,310 207,799 97,846 27,907 125,753

E. Liquidity risk

Set forth below are the contractual repayment dates of financial liabilities in

non-discounted amounts, based on the future contractual rates as at the date of the report,

including estimated interest payments. This disclosure does not include amounts with

respect to which there are offset agreements:


Contractual Up to More

Book cash one 1–2 2–5 than five

value flows year years years years


Non-derivative financial

liabilities

Credit from banks 406,804 446,407 134,573 128,508 183,326 –

Non-convertible

debentures 2,906,838 5,640,126 516,830 507,394 1,475,724 3,140,178

Liabilities to others 2,637 2,637 800 1,510 – 327

3,316,279 6,089,170 652,203 637,412 1,659,050 3,140,505


Contractual Up to More

Book cash one 1–2 2–5 than five

value flows year years years years


Non-derivative financial

liabilities

Credit from banks 458,173 539,503 88,154 138,175 313,174 –

Non-convertible

debentures 2,723,132 5,783,192 223,256 509,482 1,486,228 3,564,226

Financial guarantees 1,019 1,019 – – – 1,019

Liabilities to others 4,392 4,392 940 1,100 2,030 322

3,186,716 6,328,106 312,350 648,757 1,801,432 3,565,567

19




Note 6 – Taxes on Income

Composition of the taxes on income:


2012 2011 2010


Current taxes

Adjustments in respect of prior years, net 768 – –

Deferred taxes

Deferred taxes in the year 19,771 *7,112 –

Total 20,539 7,112 –

* Reclassified – see Note 3 above.

Note 7 – Deferred Tax Assets and Liabilities

A. Deferred tax assets and liabilities recognized

The deferred taxes are calculated based on the tax rate expected to apply at the time

reversal as detailed above.

The movement in the deferred tax assets and liabilities are attributable to the following

items:

Deductions

and Losses In Respect

Carried of

Forward Investments

Investment for Tax in Investee

Property Purposes Company Total


Balance of deferred tax asset

(liability) on January 1, 2011 (18,638) 18,638 – –

Changes recorded on the statement

of income (886) 886 (7,112) (7,112)


(liability) on December 31, 2011 (19,524) 19,524 *(7,112) (7,112)

Changes recorded on the statement

of income (35) 35 (19,771) (19,771)


(liability) on December 31, 2012 (19,559) 19,559 (26,883) (26,883)

* Reclassified – see Note 3 above.

20




Note 7 – Deferred Tax Assets and Liabilities (Cont.)

B. Details with respect to which deferred taxes were not recognized

At December 31

2012 2011

In Thousands of NIS

Deferred taxes with respect to losses for tax purposes 197,761 120,169

The Company has current losses available for carryforward, in the amount of NIS 791

million, with respect to which deferred taxes were not recorded.

Pursuant to the existing tax laws, there is no time limitation on the utilization of losses for

tax purposes. Deferred tax assets were not recognized for these items since it is not

expected that there will be taxable income in the future against which the tax benefits will

be able to be utilized.

For information regarding tax assessments – see Note 35E to the Consolidated Financial

Statements “Taxes on Income”.

21




Note 8 – Relationships, Commitments and Significant Transactions with Investee Companies

A. Financial guarantees

The Company provided investee companies financial guarantees amounting to an

aggregate amount of NIS 524 million as at December 31, 2012. In addition, the Company

provided an associated company an unlimited guarantee for coverage of liabilities to a

bank. The scope of the credit from the bank, as at December 31, 2012, against which the

Company is a guarantor, amounts to about NIS 45 million (December 31, 2011 – about

NIS 66 million).

B. Loans

Set forth below is detail regarding loans and capital notes to investee companies –


Interest Par Fair

rate value value

Linkage basis % NIS ‘000

Loans linked to the index (1) 0–4 30,142 30,142

Unlinked loans (1) 0–5.5 62,152 62,152

Loans linked to the euro (1) 0–5 557 557

92,851 92,851

Capital notes (2) 3,382,475 2,733,545

3,475,326 2,826,396


Interest Par Fair

rate value value

Linkage basis % NIS ‘000

Loans linked to the index (1) 0–8 37,046 37,046

Unlinked loans (1) 0–5.5 37,871 37,871

Loans linked to the dollar (1) 0–14 16,781 16,781

91,698 91,698

Capital notes (2) 3,485,645 1,568,142

3,577,343 1,659,840

(1) A repayment date has not yet been set for the loans

(2) The capital notes bear interest or linkage and are repayable after 5 years.

C. Agreement for provision of services

Regarding agreements signed with investee companies – see Note 42 to the Group’s

Consolidated Financial Statements.

22




Note 8 – Relationships, Commitments and Significant Transactions with Investee Companies

(Cont.)

D. Dividend

In connection with dividends received – see Note 15 to the Group’s Consolidated

Financial Statements.

E. Additional information

For additional information regarding investee companies and regarding sale of

investments in investee companies – see Notes 6 and 7 to the Consolidated Financial

Statements.

Note 9 – Events Occurring Subsequent to the Date of the Statement of Financial Position

For details regarding events occurring subsequent to the date of the statement of financial

position – see Note 44 to the Group’s Consolidated Financial Statements.

africa israel investments ltd. - afigroup-global.com docs... · current assets cash and cash ......

Documents