VX Axia 2023 Ar 00

Vision Mission Statement Values
To create value through the provision of To sustainably and profitably distribute, • Quality
high quality consumer and durable market, merchandise and retail leading • Fairness
goods in Zimbabwe and the Region. consumer and durable goods, thereby • Integrity
growing stakeholder value and to • Teamwork
enable easier access to high quality • Accountability
consumer and durable goods at • Entrepreneurship
reasonable prices to our customers.
ABOUT THIS REPORT RESTATEMENTS

Axia Corporation Limited is pleased to present its Annual Report The Group restated some of the prior sustainability data due to
for the year ended 30 June 2023. This report covers the integrated improved data measurement and systems.
financial and non-financial performance of Axia Corporation. It is
principally aimed at our stakeholders enabling them to make an BOARD RESPONSIBILITY AND APPROVAL OF THIS REPORT
informed assessment of our performance and impacts. The Annual Report of Axia Corporation Limited has been compiled
by the management team with the collective responsibility of the
REPORTING SCOPE Board of Directors. The Board takes full accountability for the
The report covers sustainability information for Axia Corporation integrity of this report and has approved it on 27 October 2023.
Limited, presenting a balanced view of material issues and
performance from our operations in Zimbabwe, Malawi and REPORT DECLARATION
Zambia. It contains relevant comparisons to previous periods and The Board of Directors and Management confirm that this report
is consistent with information and performance indicators in has been prepared in accordance with GRI Standards – ‘Core’
internal management reporting. In this document, unless option.
otherwise noted references to “our”, “we”, “us”, “the Company”, “the
Group”, and “Axia” refer to Axia Corporation Limited. CURRENCY
All references to $ throughout this report refer to the United States
REPORTING FRAMEWORKS of America Dollar (USD)
This report was compiled with due consideration of the following
regulatory requirements and reporting standards: FORWARD-LOOKING STATEMENTS
• Companies and Other Business Entities Act [Chapter 24:31]; This report may contain forward-looking statements which relate
• Victoria Falls Stock Exchange Listing Requirements; to the future performance and prospects of the Group.
• International Financial Reporting Standards (IFRS); and
• Global Reporting Initiative (“GRI”) Standards. Our assessment and future expectations are subject to various
known and unknown risks, uncertainties, and factors that may
SUSTAINABILITY DATA negatively impact our business and performance. Stakeholders are
The data presented in this report is a result of a thorough analysis cautioned not to place undue reliance on any forward-looking
of both qualitative and quantitative information extracted from statements contained herein. We commit to publicly share any
various sources including company records, policy documents, revisions of the forward-looking statements to reflect changes and
and insights from management personnel responsible for the key or events after the publication of this report through trading and
areas of the business. The team has taken utmost care to ensure website updates.
that the estimations and assumptions made in the report are
consistent with the current business operations, providing an FEEDBACK
accurate and comprehensive overview of the business' The Group values opinions and feedback from all stakeholders on
performance. how we can improve operations and reporting. We welcome your
feedback and all enquiries you may have, kindly share your
ASSURANCE feedback with finance team on: finance@axiaops.com or Claudine
The financial statements were audited by BDO Zimbabwe Madzinga on admin@axiaops.com or +263 (24) 2776 998 / 2776
(Chartered Accountants), in accordance with the International 273. You can find more information about Axia Corporation Limited
Financial Reporting Standards (“IFRS”). The independent auditor’s online at www.axiacorpltd.com .
report is contained on pages 56 to 58. Sustainability information
was reviewed by the Institute for Sustainability Africa (INSAF) as
subject matter experts for compliance with GRI Standards but was
not externally assured. A GRI Content Index is contained on pages Luke Ngwerume Ray Rambanapasi
122 to 125. Chairman Group Chief Executive Officer
OVERVIEW PERFORMANCE STRATEGIC BUSINESS SUSTAINABILITY CUSTOMER HUMAN SUSTAINABLE CLIMATE COMMUNITY FINANCIAL ANNEXURES
REVIEW LEADERSHIP & CONDUCT AND SERVICE CAPITAL OPERATIONS CHANGE RESPONSIBILITY REPORTS
GOVERNANCE COMPLIANCE AND ECONOMIC
CONTRIBUTIONS
CONTENTS
OVERVIEW 2 CLIMATE CHANGE 45
Axia Corporation Limited at a Glance 3 Climate Change 46
Greenhouse Gas (GHG) Emissions 46
PERFORMANCE REVIEW 8
Performance Highlights 9 COMMUNITY RESPONSIBILITY AND ECONOMIC
CONTRIBUTIONS 48
Chairman’s Statement and Review of Operations 10
Community Responsibility 49
Direct Economic Value Generation and Distribution 50
STRATEGIC LEADERSHIP & GOVERNANCE 16
Tax 50
Board of Directors 17
Corporate Governance 19
FINANCIAL REPORTS 51
BUSINESS CONDUCT AND COMPLIANCE 23 Report of the Audit and Risk Committee 52
Business Ethics and Compliance 24 Directors’ Responsibility and Approval of Financial
Anti-Corruption 24
Statements 54
Human Rights 24 Certificate of Compliance by the Company Secretary 54

Diversity and Inclusion 24 Report of the Directors 55
Security Practices 24 Report of the Independent Auditors 56
Risk Management Framework 24 Group Statement of Profit or Loss and Other
Financial Risks 25 Comprehensive Income 59
Significant Risks 26 Consolidated Statement of Financial Position 60
Consolidated Statement of Changes in Equity 61
SUSTAINABILITY 27 Consolidated Statement of Cash Flow 62
Sustainability Approach 28 Notes to the Financial Statements 63
Stakeholder Engagement 28
Sustainability Materiality Assessment 31 ANNEXURES 121
GRI Context Index 122
CUSTOMER SERVICE 34 Shareholders’ Analysis and Calendar 126
Customer Privacy and Security 35 Notice to Members 127
Product Quality and Safety 35 Corporate Information 129
Product variety and availability 35 Proxy Form 131
Timely Deliveries 35 Change of Address 133
HUMAN CAPITAL 36
Employment 37
Labour Relations 39
Collective Bargaining 39
Defined Pension Contributions 40
Occupational Health and Safety 40
Delivery Drivers Working Conditions 40
Accident & Safety 41
Training and Education 41
SUSTAINABLE OPERATIONS 42
Water 43
Energy 43
Waste 44
Procurement 44 For an online version of this report and additional information visit
http://axiacorpltd.com
AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 1

OVERVIEW
Axia Corporation Limited at a Glance 3
2 AXIA C
CORPORATION
ORPORATION LIMITED
LIMITED
| ANNUAL
| ANNUAL
REPORT 2023
REPORT 2023
CONTRIBUTIONS
Axia Corporation Limited at a Glance
Our History
The story of Axia Corporation Limited (Axia) began on 24 February 2016 when it was incorporated through a scheme of
reconstruction, whereby the net assets of Innscor Africa Limited’s Speciality Retail and Distribution business were unbundled
to form the Group. On the 1st of April 2016, Axia unbundled from Innscor Africa Limited and was listed on the Zimbabwe Stock
Exchange (ZSE) on the 17th of May 2016. The Group adopted a financial year ending on the 30th of June. Axia Corporation
Limited was delisted from the ZSE on 28 February 2023 and subsequently listed on the Victoria Falls Stock Exchange (VFEX) on
3 March 2023.
Milestones
1 April 17 May 2018 2020 2022 2023

2016 2016
Axia was Axia was Aquired 49% Legend Increased Axia was
unbundled listed on the shareholding Lounge was Shareholding delisted from
from Innscor Zimbabwe in Restapedic established in Restapedic Zimbabwe
Africa Limited Stock to 60% Stock
Exchange Increased Exchange
stake in Axia was
Transerv listed on the
resulting in a Victoria Falls
controlling Stock
interest Exchange
Year Milestone
1 April 2016 Axia was unbundled from Innscor Africa Limited.
17 May 2016 Axia was listed on the Zimbabwe Stock Exchange.
2018 Acquired 49% shareholding in Restapedic.
2020 • Legend Lounge was established.
• Increased stake to Transerv resulting in a controlling interest.
2022 Increased Shareholding in Restapedic to 60%
22023 • Axia was delisted from Zimbabwe Stock Exchange
• Axia was listed on the Victoria Falls Stock Exchange

GROUP STRUCTURE AND ACTIVITIES
Group Structure and Activities
Axia Corporation Limited operates within the speciality retail and distribution sector. It has three operating business units, namely
TV Sales & Home (TVSH), Transerv and Distribution Group Africa (DGA). TVSH is a leading furniture and electronic appliance
retailer with sites located countrywide. Over the years, TVSH has invested in manufacturing through the acquisition of 60% in
Restapedic and the formation of Legend Lounge.
Restapedic manufactures a wide range of quality beds for the local and export markets. Legend Lounge is a manufacturer of
premium quality lounge suites. Transerv retails automotive spares and accessories, by utilising its network of home-grown retail
branches and numerous fitments centres. DGA is a large and successful distribution and logistics concern, with operations
in Zimbabwe, Zambia and Malawi. Its core areas of expertise lie in inbound clearing and bonded warehousing, ambient and
chilled/frozen warehousing, logistics, marketing, sales and merchandising services.
SPECIALITY RETAIL
TV SALES & HOME DISTRIBUTION
TV Sales & Home 53* DISTRIBUTION GROUP AFRICA

Restapedic
Legend Lounge ZIMBABWE
Innscor Distribution
Comox Trading
Tiger Sales and Distribution
TRANSERV Freshpro
Vital Logistics
Retail Shops 35
Transerv Fitment Centre 10 ZAMBIA
Clutch and Brake Speciality (CBS) 1 Innscor Distribution
Comox Trading
Mukwa Distribution
* The number in front of a brand represents the total outlets MALAWI

open on 30 June 2023 Innscor Distribution
Comox Trading
4 AXIA CORPORATION LIMITED | ANNUAL REPORT 2023

CONTRIBUTIONS
GROUP STRUCTURE
(Listed on the Victoria Falls Stock Exchange)
66.67% 50.01% 100% 50% 100%
D Distribution
G Group
Excalibur Mauritius Moregrow
Limited Enterprises(Pvt) Ltd
A Africa
TV Sales & Home (Pvt) Ltd Distribution Group Africa (Pvt) Ltd Axia Operations (Pvt) Ltd
60% 51%
Geribran Services (Pvt) Ltd
Innscor Distribution Moregrow

100% 50% 50%
Africa Limited Mauritius Limited
100% 100% DGA Zambia 49%
100% DGA Malawi
WHERE WE OPERATE
Location
Zimbabwe
Malawi
Zambia
Mauritius

KEY BRANDS AND OPERATING UNITS
Stockist
of
Stockist
of
D Distribution
Distributor
G Group for
A Africa
Markets
Our extensive knowledge of the African business environment particularly Zimbabwe, Zambia and Malawi help us meet our
customers and beneficiaries at their point of need.
Supply Chain
We rely on a network of suppliers and customers to deliver our products and services to the end consumer. This network
includes manufacturers, distributors, vendors and merchandisers who play an essential role in ensuring our ability to meet the
needs of our customers. Strengthening our relationships with our supply chain partners is crucial to providing quality products
and services. We are always looking for ways to improve and appreciate feedback to help us achieve this goal.

CONTRIBUTIONS
BUSINESS ASSOCIATION MEMBERSHIPS AND AWARDS
Business Association Memberships
• Retailers Association of Zimbabwe

GENERAL • Confederation of Zimbabwe Industries
• National Employment Council for Motor Industry
• Association of Chartered Certified Accountants (ACCA)
• Chartered Institute of Management Accountants (CIMA)
OTHER
• Chartered Institute of Purchasing and Supply (CIPS)
• Institute of Chartered Accountants Zimbabwe (ICAZ)
AWARDS
Subsidiary Award
Transerv • Best Motor spares retailer- Buy Zimbabwe
TV Sales & Home • Sharp top partners award
• Confederation of Zim Retailer of the year in the furniture business
• Buy Zimbabwe Best Retailer of the year in the furniture businss
• Sony top partners award

PERFORMANCE
REVIEW
Performance Highlights 9
Chairman’s Statement and Review of Operations 10

CONTRIBUTIONS
FINANCIAL HIGHLIGHTS
Revenue ‘USD’ Operating Profit ‘USD’ Profit Before Tax ‘USD’
203 749 965 20 844 636 11 186 771
204 181 128 in FY2022 24 687 090 in FY2022 16 516 199 in FY2022
0.21% Decrease 16% Decrease 32% Decrease
Final Divided ‘US cents’

0,10
0.16 in FY2022
38% Decrease
Total Assets ‘USD’ Total Equity ‘USD’

118 177 281 61 731 823
96 382 472 in FY2022 56 511 075 in FY2022
23% Increase 9% Increase
SUSTAINABILITY HIGHLIGHTS
Electricity ‘Kwh’
2 319 519
2 413 061 in FY2022
4% Decrease
Diesel ‘litres’
1 536 456
664 046 in FY2022
131% Increase
Employees ‘Head count’

1 929
2 131 in FY2022
10% Decrease
Recordable work-related injuries ‘Count’

10
6 in FY2022
67% Increase

CHAIRMAN’S STATEMENT AND REVIEW OF OPERATIONS
“The Group
reported revenue
of US$203.8
million during
the year resulting
in a marginal
decline against the
comparative year.”
CHANGE IN FUNCTIONAL AND PRESENTATION
CURRENCY
The Group had a steady increase in the use of foreign currency statements to USD financial statements in an endeavour to
across its businesses and reassessed its functional currency present the best possible view of the comparative financial
in accordance with the requirements of IAS 21. The Group performance and position of the Group, in terms of the newly
concluded that based on the primary operating environment assessed functional currency.
and the Group’s own operating activities, there had been a
change in its functional currency from Zimbabwean Dollar The Directors have always exercised reasonable due care and
(“ZWL”) to United States Dollars (“USD”) with effect from the applied judgments that they considered to be appropriate
beginning of the current financial year. IAS 21 directs that in the preparation and presentation of the Group’s financial
entities operating in hyperinflationary economies should statements, and whilst they believe that the alternative
translate their last reported inflation-adjusted financial procedures and techniques used in the translation process,
statements using the closing rate of exchange at the reporting as described above, provide users with the best possible
date in order to derive and present comparative financial view of the comparative financial performance and position
statements under a newly assessed functional currency. of the Group, attention is drawn to the inherent subjectivities
and technicalities involved in the translation of ZWL financial
The Directors are of the opinion that using the provisions statements to USD financial statements.
of IAS 21 to convert the Group’s inflation-adjusted financial
statements from previous period, as a basis for presenting The alternative procedures and techniques applied for the
comparative and opening statement of financial position translation of ZWL financial statements to USD financial
information in the new functional currency, will result in statements have been summarized in Note 2.2 of the
material misstatement of the Group’s comparative financial accompanying notes to the financial statements. This has
statements. Therefore, the Group applied alternative resulted in the external auditor issuing an adverse opinion on
procedures and techniques in the translation of ZWL financial the Group’s consolidated financial statements.

CONTRIBUTIONS
CHAIRMAN’S STATEMENT AND REVIEW OF OPERATIONS (cont’d)
OPERATING ENVIRONMENT AND OVERVIEW
The operating environment was characterized by a surge

in inflation which led to the adoption of a blended inflation
rate, surges in market liquidity and the depreciation of the
local currency which worsened during the last six months
of the financial year. The Government’s efforts to control
excess liquidity via contractionary monetary policy measures
saw increased USD transactional flow, particularly within the
informal market, where consumer demand remained firm.
The formal market experienced subdued aggregate demand
due to pricing issues. The economy, however, benefited from
government infrastructure spending, increased diaspora
remittances and increased mining activities.
The stance taken by both fiscal and monetary authorities

towards the end of the financial year resulted in a constrained
monetary space which helped stabilize the exchange rate.
During the last quarter of the financial year, the businesses
faced foreign and local currency supply constraints.
In Zambia, consumer spending was under pressure throughout

the year as the impact of price increases, mainly from South
Africa, was felt. These shocks were largely mitigated by periodic
appreciation of the local currency during the financial year.
Malawi has consistently run a current account deficit through

the years resulting in foreign currency shortages. The official
currency exchange rate depreciating by 41% during the year.
FINANCIAL OVERVIEW
The Group reported revenue of US$203.8 million during the

year resulting in a marginal decline against the comparative
CHANGE IN ACCOUNTING POLICY FOR PROPERTY, year. Despite the revenue decline, the Group realized growth
PLANT AND EQUIPMENT in gross margin which increased by 2% on the prior year.
Management made efforts to contain operating expenditure
As part of procedures and techniques applied in the translation although cost push pressures were evident in fuel costs
of ZWL financial statements to USD financial statements, the and human capital costs resulting in increases over the
Group changed its accounting policy for Property, Plant and comparative period. The Group posted an operating profit
Equipment from cost to revaluation model. The revaluation of US$20.84 million, representing a 16% decline to the
was performed at the end of the financial year. comparative period. The financial loss line is predominantly
comprised of foreign currency exchange losses resulting from
The revalued amounts were based on a valuation exercise the depreciation of monetary assets denominated in local
performed by an independent accredited valuer, Hammer and currency as the local currency significantly devalued in the last
Tongues for Zimbabwean units and R.M Fumbeshi & Co for quarter of the financial year. Net interest expenses amounted
Zambian entities and PCDA Consultants for Malawian entities. to US$3.22 million, with 48% of this incurred in the first quarter
Hammer and Tongues has experience in valuing assets of of the financial year following the sharp increase in interest
the Group’s nature. A valuation model in accordance with rates on ZWL denominated borrowings. Profit before tax was
that recommended by the International Valuation Standards US$11.19 million, which was 32% below the prior year. Basic
Committee has been applied. Earnings Per Share and Headline Earnings Per Share both
declined by 34%.
The revaluation surplus, net of deferred tax, has been included
under Non Distributable Reserves, with the movement for the The Group’s financial position remained solid. Borrowings
current year shown under Other Comprehensive Income. grew by US$3.19 million.

The Group
generated cash
of US$15.932
million from
operations which
enabled it to incur
capital expenditure
for the year of
US$6.6 million.
The Group generated cash of US$15.932 million from
operations which enabled it to incur capital expenditure for
the year of US$6.6 million. The Group’s free cash generation
will enable it to continue executing exciting expansion
opportunities.
SUSTAINABILITY
As part of its commitment to ensuring the sustainability

of its businesses, the Group will continue to uphold these TV Sales & Home
responsible business practices and values across its operations
to ensure that long-term business success is achieved in a The fourth quarter revenue performance for TV Sales & Home
sustainable manner. We remain committed to making positive was up 7% compared to the same period prior year. The year-
impacts on society, natural environment, and climate by to-date volume performance increased by 4% compared to
ensuring our operations have limited negative impacts. the prior year. Revenue increased by 5% primarily a result of the
generic growth of stores in the store network. Most operating
OPERATIONS costs incurred during the financial year were indexed to the
US$ resulting in significant growth against prior year. A hike
The main operating business units in the Axia Corporation in interest rates by authorities on ZWL borrowings led to high
Limited Group are TV Sales & Home (TVSH), Distribution interest costs.
Group Africa (DGA) and Transerv. TVSH is Zimbabwe’s leading
furniture and electronic appliance retailer with sites located As previously mentioned at half year, TV Sales & Home
countrywide. DGA’s core areas of expertise lie in inbound continues to invest in volume growth initiatives with the
clearing and bonded warehousing, ambient and chilled introduction of a new product range from the group’s local
warehousing, logistics, marketing, sales, and merchandising manufacturing units as well as imported products. The
services. Transerv retails automotive spares and accessories business managed to reengage Samsung Electronics as a
through retail stores and fitment centers to service the needs trade partner after a very prolonged absence and the potential
of its customers. of this partnership is significant.

CONTRIBUTIONS
raw material supply gaps attributed to delays on auction

payments in the third quarter. The business moved to the
new bedding factory in Sunway City, Harare, in April 2023
and production volumes have improved since then. Third
quarter performance was affected by disruption of production
as different factory units were moved to the new factory in
Sunway City, Harare. After moving to the new bedding facility
in Sunway City, Harare in April 2023, production volumes are
on upward trend. A new conveyor system has been delivered
and is currently being installed thus improving in automation
in the manufacturing process which would result in improving
production volumes. Some orders were sold to new markets
in the region and response from those markets has been
encouraging.
Legend Lounge is a lounge suite manufacturing business

unit fully owned by TV Sales & Home. The business also
experienced raw material supply gaps attributed to delays in
the auction payments which negatively impacted the imports
supply chain. This resulted in volumes decline of 7% against
the comparative year which led to a 9% decline in turnover.
The new management team is focusing on volume growth,
improving gross margin dollars and managing operating
costs.
Distribution Group Africa (DGA)- Zimbabwe
Volumes for the year were 29% below the prior year and
this resulted in a decline in revenue. This was due to weaker
demand in the formal sector. The business incurred losses
during the year due to exchange losses arising from delays in
payments from its major customers. This led to management’s
decision to stop supplying to some customers as a way to
manage the risk on debtors. Management is continuously
working with all parties to build demand in the formal sector.
We are continuously working with all parties to build demand
in the formal sector.
The business remains poised to exploit growth opportunities

from economic activities in the informal business sector that
Three new stores were opened in Harare during the financial will not require extended credit terms. The business continues
year. However, two stores were also closed in Harare as the to safeguard and grow shareholder value by embarking on
business was given notice by the landlord. Plans are underway projects that generate positive cash flows and achieve the
to continue expanding the retail store network. At least four required returns.
new stores will be opened in the first half of the new financial
year with a new store concept, Bedtime Store, opening two Distribution Group Africa - Region
stores. The first outdoor world, garden furniture, store was
opened in September 2023. Volumes are expected to improve In Zambia, volumes increased by 22% on the prior year
in the new financial year, ceteris paribus, following the resulting in 14% revenue growth. The sales mix was skewed
addition of new home appliances and homeware distribution towards high-margin products which led to improved
business lines. margins. The business increased its operating profit by 199%
on a like-for-like basis, in US$ terms. The business continues to
Restapedic is a bed manufacturing business unit of TV Sales & monitor and correct its pricing positions in response to market
Home. Volumes for the fourth quarter at Restapedic improved conditions. Management will remain focused on pursuing real
by 10% resulting in quarterly turnover growth of 7% against equity growth.
the comparative quarter. However, year-to-date volumes and
turnover decreased by 14% and 9% respectively primarily as In Malawi, the economy continues to face foreign currency
a result of poor performance in first quarter and third quarter shortages. The foreign currency shortages resulted in
of the financial year. The business experienced intermittent the business reducing its ordering of imported stock as

The Board has

declared a final
dividend of
US$0.0010 (0.10
US cents) per share
in respect of all
ordinary shares of
the Company.
management decided to sell imported stock only to the extent
to which they can generate foreign currency to replace it. This
led to a decline in sales volumes of 15%. Operating expenditure
was well managed, and this resulted in the business posting
a decent profit. Plans have been implemented to generate
foreign currency to settle foreign suppliers and this helped to
grow the US$ shareholders’ equity. Management will continue
to foster relationships with suppliers and financial institutions
to manage the foreign currency situation.
Transerv
to pay foreign suppliers and price products accordingly. The
During the year under review the Company’s revenue right pricing of goods will stimulate demand thus improving
increased by 5% compared to the prior year. The increase in sales volumes.
revenue was driven by rapid expansion in the Company’s
retail footprint. During the year, the Company opened seven The Group’s management teams will focus on balancing
new retail stores in Harare and one in Kadoma. The Company pricing and volume objectives, broadening product ranges,
continues with its drive to increase its retail footprint in a achieving growth in margin dollars as well as managing
bid to bring convenience and improve the overall customer operating costs. The Group will continue to focus on
shopping experience. Management is confident that in the growth from existing businesses whilst looking out for new
2024 financial year, revenue will continue to grow as the opportunities. Management in Zambia will focus on pushing
Company reaps the full benefits of footprint expansion. volumes, looking for new distributorship agencies, monitoring
and managing pricing positions in response to market
PROSPECTS conditions.
The establishment of the wholesale willing buyer willing In Malawi, the authorities have pressure to officially devalue
seller market has brought renewed confidence in the foreign the Malawi Kwacha. Management will continuously look
currency auction system. The Group is hopeful that this will for opportunities to source foreign currency to adequately
be a reliable source of foreign currency to enable the Group provide product to the business.

CONTRIBUTIONS
DIVIDEND APPRECIATION
I express my sincere gratitude to the Board of Directors,
The Board has declared a final dividend of US$0.0010 (0.10 executives, management and staff for their ongoing
US cents) per share in respect of all ordinary shares of the efforts during the year under review. Their commitment,
Company. This brings the total dividend paid for the year despite the challenging operating environment, is greatly
to US$0.0028 (0.28 US cents). The final dividend is payable appreciated. I also take this opportunity to thank the Group’s
in respect of the financial year ended 30 June 2023 and will valued customers, suppliers and other stakeholders for their
be paid in full to all ordinary shareholders of the Company continued support and trust.
registered at close of business on the 10th of November 2023.
The payment of this dividend will take place on or around the
13th of November 2023. The shares of the Company will be
traded cum-dividend on the Victoria Falls Stock Exchange up
to the 7th of November 2023 and ex-dividend as from the 8th
of November 2023.
The Board has also declared a final dividend of US$25,000 to L E M NGWERUME

the Axia Employee Trust (Private) Limited which will be paid Chairman
on or around the same date. 27 October 2023

STRATEGIC
LEADERSHIP &
GOVERNANCE
Directorate and Management 17
Corporate Governance 19

CONTRIBUTIONS
BOARD OF DIRECTORS
Luke Ngwerume Ray Rambanapasi

Independent Non-Executive Chairman Group Chief Executive Officer*
Qualifications: MBA (UCT) Qualifications: Chartered Accountant, MBA (UCT)
Key Skills: Corporate Finance, Financial Performance, Strategy, Key Skills: Taxation, Corporate Finance, FMCG, Manufacturing,
Entrepreneurship, Investments, Compliance and Governance, Financial Performance, Strategy, Compliance and Governance
Banking and Financial Services and Business Management. and Business Management.
Other Commitments: * appointed on the 1st of January 2023,

Director of Old Mutual Nigeria
Zinona (Zed) Koudounaris
Non-Independent Non-Executive Director
Thembiwe Mazingi
Independent Non-Executive Director Qualifications: B.Com Business & Computer Science
Qualifications: LLB, MBA (UZ) Key Skills: Entrepreneurship, Strategy, Business Management,
FMCG, Manufacturing, Agriculture, Banking and Financial
Key Skills: Corporate Law, Taxation, Agriculture, Strategy, Services and Financial Performance
Compliance and Governance, Banking and Financial Services
and Business Management. Other Commitments:
Director of Innscor Africa Limited and Simbisa Brands
Other Commitments: Limited
Director of Ariston Holdings Limited and African Century
Limited. Partner at Coghlan, Welsh and Guest Legal
Practitioners
Thembinkosi (Themba ) Sibanda

Independent Non-Executive Director
Qualifications: Chartered Accountant
Key Skills: Taxation, Corporate Finance, FMCG, Manufacturing,

Financial Performance, Strategy and Business Management.
Other Commitments:
Director of Edgars Stores Limited (Chairman of the Board),
Padenga Holdings Limited (Chairman of the Board), Innscor
Africa Limited and PPC Zimbabwe Limited. Principal at
Schmulian & Sibanda (Chartered Accountants).

DIRECTORATE AND MANAGEMENT
DIVISIONAL MANAGEMENT
Executive Name Title/ Designation
TV SALES & HOME

Sean Gorringe Managing Director
Joseph Kamasho Finance Director
TRANSERV
Lloyd Mugabe Managing Director
DISTRIBUTION
Distribution Group Africa-Zimbabwe

Craig Hodgson Managing Director
Vengai Mugabe Finance Director
Innscor Distribution & Comox – Zambia

Seko Mwayungwi Managing Director
Innscor Distribution & Comox – Malawi

Kennedy Muchenga Managing Director

CONTRIBUTIONS
CORPORATE GOVERNANCE
Group Governance
Axia Corporation Limited is committed to upholding the principles of Corporate Governance as outlined in IS134 of 2019 Securities
and Exchange Rules (Victoria Falls Stock Echange Listing requirement), the Companies ans Other Businesses Entities Act (chapter
24:31), the King IV Code, the National Code on Corporate Governance in Zimbabwe and other International Best Practices on
Corporate Governances . The Directors recognise the importance of conducting the Group’s affairs with transparency, integrity,
accountability, and abiding with accepted corporate practices. This approach assures shareholders and other stakeholders
that Axia Corporation is being managed ethically with prudently determined risk parameters and in compliance with the best
international practices. This ensures value addition to the Group’s financial and human capital investment.
Board Responsibility
The Board’s primary responsibility is to fulfil its fiduciary obligation to the shareholders and the Group. As such, it serves as the
highest policy-making entity of the business and is responsible for providing strategic guidance. The Board meets quarterly to
oversee management performance and uphold control over the Group’s strategic direction.
Board Composition
The Board is composed of one executive director and four non-executive directors, three of them are independent. Non-
executive Directors provide independent guidance and oversight for the Company’s strategic decision-making process and
corporate governance practices.
Gender Distribution Board Composition Board Age Profile
80% Male 20% Female 20% Non-Independent Non-Executive 20% Above 65 year
20% Independent Non-Executive 60% 60-65 years
60% Executive 20% Below 40 year
Board Expertise
The Directors are allocated responsibilities in sub-committees where each member is assigned responsibilities based on their
skills and area of expertise. Each business unit within the Group has a separate Board that is responsible for its day-to-day
operations and has defined objectives. A comprehensive financial reporting system is in place to ensure that each business unit
is held accountable on a monthly basis.
Nomination of Directors
The Board comprises individuals with demonstrated track records and diverse skills and experience, which they leverage for
the benefit of the Group. The Group is committed to ensuring that there is top-notch leadership at the highest level. Therefore,
the selection of board members considers diversity, independence, and expertise, while paying attention to the interests of the
business stakeholders.

CORPORATE GOVERNANCE (cont’d)
The Group has established three committees to enable the board to achieve its responsibilities as follows:
Committee Members Summary Roles and Responsibilities

Executive R.M. Rambanapasi The Executive Committee is responsible for formulating, directing, and implementing
(Chairman) strategic decisions. The Committee meets monthly and is composed of two Directors and
L. Mugabe five executives from business units.
S. Gorringe
C. Hodgson
J. Kamasho
V. Mugabe
Audit and Risk T.N Sibanda The audit and risk committee of the Board deals, inter alia, with compliance, internal control,
(Chairman) and risk management. The committee currently comprises two independent non-executive
T.C. Mazingi directors and one executive director.
R.M. Rambanapasi
The committee meets at least three times a year and its responsibilities include but not
limited to the following:
• Ensuring that financial reporting across the Group is transparent, accurate and reliable;
• Overseeing and managing the performance, functioning, and effectiveness of the
organisation’s finance and risk functions and internal audit functions;
• Assisting the Board in fulfilling its corporate governance oversight responsibility
regarding the identification, evaluation, and mitigation of operational, strategic, and
external risks;
• Monitoring and reviewing the organisation’s risk management practices and risk-
related disclosures and;
• Ensuring that the roles and functions of both internal and external audit are lucid
and synchronised. Both the internal and external auditors meet regularly and have
unrestricted access to the Audit Committee
Remuneration T.C.Mazingi The remuneration and nomination committee comprises three independent non-executive
and (Chairperson) Directors, one non-independent non-executive Director, and one executive Director.
Nomination L.E.M Ngwerume The remuneration and nomination committee’s mandate has the following primary
Z. Koudounaris responsibilities.
T.N. Sibanda
R.M. Rambanapasi • Evaluating and sanctioning the appointment of, and remuneration packages for, all
Board members, Executive Directors, and senior management. In doing so, it will
assemble a structure and strategy related to the terms of employment for employees,
management, and board members, as well as any compensation that aims to reward
in a manner that attracts and retains talented individuals, and employees to constantly
seek to elevate and contribute to the Group’s success.
• Orchestrating succession planning within the Group, particularly that of the chief
executive and executive management.
Criteria for Nomination

The Board is key to the Group’s long-term success and ensuring strong leadership is
paramount. The Group strives to make sure that there is the right calibre of leadership at
the top levels thus selection of board members considers diversity, independence and
expertise, with due consideration of the business stakeholders.

CONTRIBUTIONS
Attendance of meetings during the financial year ended 30 June 2023 (from 1 July 2022 to 30 June 2023)
Audit and Risk Remuneration and

Board Member Name Main Board/AGM Committee Nomination Committee
Possible Attended Possible Attended Possible Attended
Luke Ngwerume ^ 5 5 N/A N/A 1 1
Ray Rambanapasi* 5 5 3 3 N/A N/A
Zinona (Zed) Koudounaris 4 4 N/A N/A 1 1
Thembiwe Mazingi 5 5 3 3 1 1
Thembinkosi (Themba ) Sibanda # 5 5 3 3 1 1
John Koumides** 2 2 1 1 1 1
* Executive
** He retired on 31 December 2022
^ Chairperson of the Board plus Chairperson of the Remuneration and Nomination Committee
# Chairperson of the Audit and Risk Committee
Compliance with Governance Regulations
As per the Companies and Other Business Entities Act [Chapter 24:31] (“COBE”), section 206 (2), a public company must have
a minimum of 3 independent non-executive directors on its Board of Directors. Axia Corporation fully complies with this
requirement as its Board has 3 independent non-executive directors. According to section 219 of the COBE, the Audit Committee
of a public company must have a minimum of three (3) members, all of whom should be independent directors. The Groups’
Audit Committee consists of 3 members, out of which 2 are independent directors. Additionally, section 195 (1) of the COBE
requires a public company to have at least seven (7) directors. The Axia Directorate comprises of five (5) directors. The Group has
embarked on steps to ensure that these requiments are met.
Mechanisms for Communication with Stakeholders
The Group provides various platforms for its stakeholders to communicate with its Board of Directors and senior management.
These platforms include the Annual General Meeting, press releases, announcements of interim and year-end results, investor
briefings, annual reports to shareholders, and the exercise of shareholders’ voting rights.
Board and Management Ethics
The Group believes that it is the responsibility of the Board and management to lead by following acceptable ethical business
practices. Therefore, all Directors and Management must disclose any interests that may be considered as conflicting with their
contracts with the Group. The company considers professional and ethical standards as an essential component of its business
operations. The Group acknowledges that the perception of investors and stakeholders is influenced by the way the company,
its Directors, management, and staff conduct business. Therefore, the Group always strives to maintain the highest standards of
integrity and business ethics.
Declaration of Director’s Interests
The beneficial interests of Directors and their families in the shares of the Group are disclosed under note 23.3.
Whistle-blower policy
The Group upholds its values and principles of conduct and expects all individuals to follow ethical standards. It is mandatory
for all employees and stakeholders to report unethical behaviour through an independently managed whistle-blower system.
This system provides a secure channel for stakeholders to report any form of misconduct they come across without fear of any
repercussions.

Share Dealings
The Group has a policy in line with the Victoria Falls Stock Exchange Listing Requirements prohibiting dealings in shares by
Directors, officers, executive management and all its employees for a designated period which is:
• Any period when they are aware of any negotiations or in possession of price-sensitive information not within the public
domain; or
• The period from the end of the Group’s financial year end to the date of earliest publication of the Group’s preliminary
report, abridged report or provisional report; or
• The period from the expiry of the first six months of the Group’s financial year to the date of publication of the company’s
interim results; or
• Any period when the Company is trading under cautionary announcement.
Directors Remuneration
Remuneration packages for Directors are determined by the Group’s Remuneration Committee. These packages include
guaranteed salary as well as performance related incentives linked to the achievement of preset profit targets and levels of
free cashflow. As at 30 June 2023, there were no loans from the Company to any Directors. As at 30 June 2023, 9 530 934 share
options were granted to Directors and certain Senior Management and Executive, all of these share options were fully exercised.
More details of the share option scheme are disclosed under note 23.4.2.
Professional Advice
It is the Group’s Policy that where justifiable, Directors are entitled to seek independent professional advice at the Group’s
expense on matters in the furtherance of their duties or in advance of the Group and its companies’ value creation.

CONTRIBUTIONS
BUSINESS
CONDUCT AND
COMPLIANCE
Business Ethics 24
Anti-Corruption 24
Human Rights 24
Diversity and Inclusion 24
Security Practices 24
Risk Management 24
Financial Risks 25
Significant Risks 26

BUSINESS CONDUCT AND COMPLIANCE
Business Ethics and Compliance
Business ethics and compliance involves managing risks and opportunities surrounding ethical conduct. Axia Corporation Limited
understands the importance of ethical practices within its value chain and by adhering to business ethics and compliance, the
Group maintains a good reputation. We are guided by the Corporate Governance Policy to ensure that compliance standards
are met.
The Group has senior managers who are specifically responsible for different laws and regulations. They ensure that compliance
is met. To track the effectiveness of the steps taken, we carry out internal and external audit processes. After the audit processes
are undertaken reports are compiled with a summary of the procedures taken, key findings and recommendations.
Anti-Corruption
We make it a priority not to tolerate any form of corruption throughout our business and relations. We believe not observing
ethical principles has the potential to destroy our business through reputational damage. We have a strong control environment
with zero tolerance for corrupt activities. We carry out internal and external audits in order to evaluate the efficiency of our efforts
towards operating in an ethical manner. Our goal is to eliminate corruption and this will be indicated by a reduction in reported
corrupt activities. For the year under review, great progress was made towards operating as an ethical and compliant business.
Human Rights
As Axia Corporation Limited, we understand that respecting human rights improves employee motivation therefore increasing
their productivity levels. On the other hand, there is a potential for abuse of human rights by employees which may pose a
negative impact on service delivery.
We are guided by our Human Resources Policies which require fair treatment of employees with particular attention to
respecting human rights. Group companies have strong Workers’ Committees that engage with management at any point in
time to discuss issues relating to the topic under consideration. More so, we constantly educate employees regarding human
rights-related issues and management in order to empower them.
Our goal is to ensure employees are treated fairly and that they are aware of their own rights and this is assessed by monitoring
the number of complaints from employees and the Workers Committees. We constantly renew our policies to adjust to
changing legislation on human rights management. We frequently engage various stakeholders to identify weak points in the
management of human rights and how to address them.
Diversity and Inclusion
Our commitment to diversity and inclusion is reflected in the makeup of our board and workforce, as well as our approach to
salary and remuneration. By fostering a diverse and inclusive workplace, the Group not only earns a positive reputation as a fair
and ethical company but also ensures that it attracts and retains top talent. To achieve this, the Group’s Human Resource Policy is
guided by rigorous standards for fair recruitment and promotion, which ensure that all employees have equal opportunities for
career advancement, regardless of age, gender or ethnicity. Through these efforts, we cultivate a diverse and talented workforce
that is well-equipped to meet the complex challenges of the modern business landscape.
Security Practices
As businesses grow and evolve, ensuring the safety and security of their employees, customers and assets becomes increasingly
critical. In this regard, Axia adopted a comprehensive security practices management approach to ensure the safety of employees,
customers and assets.
Our security team is equipped with the necessary expertise to provide professional services to our customers while respecting
their privacy. We regularly conduct unannounced visits to our shops to evaluate the competence of our security personnel, and
we rely on customer feedback to identify areas of our security practices that require improvement.
Risk Management Framework
The Group recognises the importance of operating sustainably and acknowledges the potential for long-term business success
through sustainability reporting. It aims to engage with its stakeholders, identify material issues, and respond to matters by
following the Global Reporting Initiatives (GRI) Standards. Additionally, the Group seeks to build a business driven by inclusivity,

CONTRIBUTIONS
BUSINESS CONDUCT AND COMPLIANCE (cont’d)
responsiveness, and sustainable practices while contributing to sustainable development in the areas where it operates. To
manage risks effectively, the Group follows a systematic and comprehensive risk profiling exercise at the beginning of each year.
This process involves extensive consultations with all internal stakeholders.
Risks are identified and ranked based on their probability and scale of impact, and feasible risk management strategies are
considered and implemented. Continuous audit risk reviews are conducted to ensure ongoing assessment and mitigation of
risks. When selecting audit areas, a risk-based approach is adopted, considering both internal and external threats that may
impact key strategic and operational objectives. We maintain a risk register, where we explain the risks identified, the planned
action and the assessment of residual risk. For accountability, we continuously report on our risks during Management and
Board meetings. We use the Brags rating system for the residual risk rating.
Financial Risks
The Group prioritises the management of its financial risks, focusing primarily on interest rate and liquidity risk. To mitigate
interest rate risk, the Group adopts a strategy of fixed interest rates rather than variable rates. It ensures that the fixed interest
rates remain lower than the expected rate of return from its invested assets. This approach provides stability and predictability
in interest expenses. In terms of liquidity risk, the Group maintains a strict monitoring system for its financial instruments,
continuously assessing their risk profiles and maturity. By doing so, it aims to prevent liquidity gaps from arising. In cases where
liquidity gaps are anticipated, the management promptly develops plans to secure additional funding or renegotiate maturity
dates for financial liabilities.
Axia Corporation Limited carefully assesses eligibility criteria for credit, taking into account current and projected micro and
macroeconomic factors. Credit is extended only to credit-worthy customers with reasonable tenure and interest rates that align
with inflationary conditions. We conduct periodic checks and reconciliations to manage financial risks. In addition, we have
various levels of review of different information within the Group to ensure that any anomalies can be detected and escalated
timeously. We have internal and external auditors, who through their various processes and reports also assist in managing
financial risks.

BUSINESS CONDUCT AND COMPLIANCE (cont’d)
Significant Risks
During the reporting period, the following risks were identified:
Risk Category Risk Description Risk Mitigation Measures
Business • Volumes decline due to a decline • Seek out new product lines.
in disposable incomes as a result of • Continue to price current products in line
hyperinflation. with changes in the economic environment.
• Consider backward integration to
manufacturing customer goods and fight
competition.
• Business concentration risk as major • Consider replicating successful business

operations are in the Zimbabwean models in Zimbabwe to other African
market. countries like Kenya, Namibia and Botswana.
Government and • Regulatory risk – compliance with various • Maintaining good relationships with relevant
Regulators laws, in particular, currency and exchange authorities to ensure that they understand
control laws and various tax legislations. the nature of our business, our foreign
currency requirements and our contribution
to the fiscus to lobby for their support.
Environmental and social • Environmental pollution, hazards to • Work with the various stakeholders to
human health, safety and security. ensure we have a positive impact on our
communities.
Financial • Loss of shareholder value due to • Active monitoring of local monetary assets,
inappropriate pricing. ensuring branches generate meaningful
• Loss of value of monetary assets due to profits.
exchange rate fluctuations resulting in • Diversifying funding sources from not only
decline in shareholders value. banks to other financial institutions such as
• Lending rates and availability of liquidity investment funds.
to support business requests.
Operational Risk • Damage to stock. • Recovery through an insurance policy.
• IT System Errors. • System errors escalated to IT for further

management.
• Fraud. • Active monitoring of physical and electronic

control systems in place by management.
Strategic risk • Delays in the shipment of imported • Order in advance, and look for local suppliers
products. of similar goods.
• Supply bottlenecks. • Backward integration with major suppliers.

OVERVIEW PERFORMANCE STRATEGIC BUSINESS SUSTAINABILITY CUSTOMERS HUMAN RESPONSIBLE CLIMATE INVESTING IN FINANCIAL ANNEXURES
REVIEW LEADERSHIP & ETHICS AND RELATIONS CAPITAL OPERATIONS CHANGE COMMUNITY REPORTS
GOVERNANCE COMPLIANCE DEVELOPMENT AND ECONOMIC
DEVELOPMENT
SUSTAINABILITY
Sustainability Approach 28
Stakeholder Engagement 28
Sustainability Materiality Assessment 31

SUSTAINABILITY APPROACH
Our Strategy
Axia Corporation Limited is committed to creating value through sustainable business practices. To achieve this, we prioritise
the identification, measurement, and accountability of economic, environmental, and social issues. The primary objective is to
provide our customers with eco-friendly high-quality and durable products. As a retail and distribution business, we rely on our
stakeholders to help us identify impacts and opportunities in our operations and supply chain. Our ultimate goal is to create
positive impacts for our stakeholders through our business activities and operations, which will lead to long-term success.
Supply Chain
The Group connects producers and consumers with a strong sense of responsibility. To ensure that our supply chain partners
meet the highest standards, we have a strict monitoring system that includes thorough screening procedures. We evaluate
suppliers based on their environmental impact, social responsibility, compliance with regulations, and human rights practices.
Our goal is to promote sustainable practices that align with our values and do not compromise the integrity of our brands. We
believe in transparency and fairness in our relationships with supply chain partners to create a mutually beneficial partnership.
Sustainable Operations
As a responsible business, we understand the significance of conducting sustainable operations that do not damage the
environment. We encourage all our subsidiaries to take necessary precautions to minimise any negative impact on the
environment, society, and economy. For this purpose, our subsidiaries adhere to standard operating procedures that promote
sustainable practices, ensuring that they do not create any negative effects.
Shared Values
Our business strategy is centred on customer satisfaction and involves being inclusive and responsive to their concerns. In
line with this, we prioritise creating shared values with our customers and other stakeholders by adopting environmentally
conscious practices and ensuring responsible disposal of packaging waste. We strongly believe that by creating shared values,
we can contribute to a better world.
STAKEHOLDER ENGAGEMENT
We provide an effective means for addressing economic, environmental and social challenges by considering the views of our
various stakeholders. We recognise that stakeholder engagement is essential for achieving our strategic objectives, enhancing
our performance and managing risks.
The Group’s stakeholder engagement approach is driven at the Group level and the process is guided by the GRI Standards in
stakeholder identification, prioritisation and management approach. We use various methods and channels to communicate
with them and we seek to understand their expectations, interests and concerns, and to address them in a timely and constructive
manner. Additionally, we monitor and evaluate the effectiveness of our stakeholder engagement activities and report on the
outcomes and impacts.

CONTRIBUTIONS
STAKEHOLDER ENGAGEMENT (cont’d)
We identified the following as key stakeholder groups:
Engagement activities for the year were as follows:
Material issues raised for Communication Frequency of

Stakeholder Stakeholder Concerns Mitigation Measures Channel Engagement
Employees • Work-life balance and • Encouraging employees • Works Council • Quarterly.
mental health. to take regular breaks and meetings. • Ad hoc.
• Remuneration and education. • Internal
employee welfare. • Monthly salary reviews. memorandums.
• Indexing of salaries. • Emails.
Suppliers • Procurement or business • Broadening supplier vetting • Supplier • Quarterly

growth opportunities. and engagements. briefings and • Ad hoc
• Timely payments. • Considering local suppliers. meetings • Monthly
• Emails.
• Telephone.
• Competitive
tenders.
Customers • Delivery of value and • Continuous monitoring of • On- going daily • Daily
competitive pricing. product quality and pricing. engagements. • Weekly
• Promotions. • Seeking the best • Customer • Monthly
• Improving the online sales procurement process. feedback in-
channel. store and links
• Timely payments on websites.
• Emails
• Customer
meetings
Government and • Compliance with laws • Policy briefings. • Phone. • Ad hoc.
Other Regulators and regulations especially • Compliance inspections and • Email.
statutory instruments. formal meetings. • Memos.
• Payment of subscriptions

STAKEHOLDER ENGAGEMENT (cont’d)
Material issues raised for Communication Frequency of

Stakeholder Stakeholder Concerns Mitigation Measures Channel Engagement
Shareholders • Profitability and • Tracking Company • Investor • Quarterly

and Potential investment growth in real performance in real terms in shareholder • Monthly
Investors terms. addition to regular reporting. briefings. • Bi-annually
• Business expansion • Investment in production • Annual general • Annually
prospects. facilities and growth in store meetings.
footprint. • Publication
of bi- annual
results.
• Trading
updates.
Financial • Lending rates and market • Negotiating more favourable • Formal • Ad hoc
Institutions risks. interest rates as a listed blue- meetings.
• Availability of liquidity to chip entity. • Quarterly
support business. • Diversifying funding sources briefings and
from only banks to other publications.
financial institutions such as
investment funds.
Local • Increase support for • Increasing the number of • Meeting with • Ad hoc
Communities charity organisations. beneficiaries. community
• Creating job opportunities. • Opening new business units. leaders
and charity
organisations.

CONTRIBUTIONS
SUSTAINABILITY MATERIALITY ASSESSMENT
Our Sustainability Context
Our sustainability strategy aims to deliver positive impacts through specific activities that help address some of the most pressing
concerns of its stakeholders. Our strategy is focused on the principles of environmental, social and governance (ESG) issues
following the guidelines of the Global Reporting Initiative (GRI). We engage with our internal and external stakeholders, analyse
our business risks and opportunities, and benchmark our performance against industry standards. This assessment informs our
sustainability strategy, goals and reporting. We believe that our most important contribution to sustainable development is to
operate an effective and profitable business.
Sustainability Materiality Assessment Process
Our sustainability materiality assessment is a concept that helps to identify the most significant material issues that may impact
our business, values and ability to achieve our strategic aspirations. The materiality assessment was conducted through a
questionnaire survey by the Group. Data collected from the survey was processed in phases that included the identification
of issues relevant to the nature of operations through stakeholder assessment and benchmarking. The survey assessed the
perceptions of management on the relative importance of the identified topics to Axia Corporation Limited and their influence
on the decisions of stakeholders and human rights. The final topics were verified and approved by senior management for
consistency with business activities.

SUSTAINABILITY MATERIALITY ASSESSMENT (cont’d)
Material Topics
The material issues identified have been reaffirmed as most relevant to Axia Corporation Limited for the period ended 30 June
2023. The identified issues were categorised into economic, environmental, social and governance topics as presented below:
• Economic category – topics that cover the flow of capital among different stakeholders, and the main economic impacts
of the Group throughout the society.
• Social category – topics that relate to impacts on the social systems and human rights in our area of operations.
• Environmental category – covers impacts on living and non-living natural systems, including land, air, water, and
ecosystems.
• Governance – covers impacts on the system of rules, practices and processes by which the Group is directed and controlled.
Environment Economic Social Governance

• Energy • Tax • Diversity and inclusion • Business ethics and
• Waste • Economic Performance • Local Communities compliance
• Water • Procurement Practices • Occupational Health and • Anti-corruption
• Emissions and Supply chain Safety
• Climate Change Management • Security Practices
• Employment
• Training and Education
• Corporate Social
Responsibility
• Outlets Accessibility
Materiality Matrix
MODERATE HIGH VERY HIGH
Economic Performance
Security Practices
Business ethics and compliance
Product variety & availibility
Importance to Stakeholders
Waste Labour Relations Energy

Anticorruption
Outlets accessibility
Water Employment
Diversity and Inclusion
Training and Education
Occupational Health and Safety Tax
Importance to the Business

From the matrix above, topics ranked as;
Very High – reflects those regarded by the business and shareholders to be of significant interest. As such, they represent both
risks and opportunities for the Group.
High – reflects those where measures are in place to manage the impacts while improvements continue to be
implemented.
Moderate – reflects those where significant effort was made by the Group to address them.
During the reporting period, the following topics were identified as significant to both the Group and stakeholders included Tax,
Economic Performance, Security Practices, Product Variety and Availability and Anti-corruption.

CONTRIBUTIONS
SUSTAINABILITY MATERIALITY ASSESSMENT (cont’d)
Materiality linked to SDGs
We linked our materiality matrix to the Sustainable Development Goals (SDGs) to demonstrate the significance of how actions
on the topics contribute to relevant SDGs.
Low Relevance to sustainable development Very High

Anti-corruption 16
Business Ethics and Compliance 16
Diversity and Inclusion 5 10
Economic Performance 8
Energy 7 3
Employment 8
Labour Relations 8
Occupational Health and Safety 3 8
Security Practices 16
Waste 12
Water 6

CUSTOMER
SERVICE
Customer Privacy and Security 35
Product Quality and Safety 35
Product variety and availability 35
Timely Deliveries 35

CONTRIBUTIONS
CUSTOMER SERVICE
Axia Corporation Limited understands that providing good customer service drive good relations which is crucial to its success. To achieve
this, we put a lot of effort into delivering top-quality products and services that cater for our clients’ needs and expectations. We value the
input of our customers as it enables us to enhance performance and improve customer satisfaction. Our team is highly skilled, experienced
and always available to attend to customer complaints regarding our business activities. Our goal is to establish long-term and mutually
beneficial relationships with our customers, based on trust, respect, and transparency.
Customer Privacy and Security
Axia Corporation Limited implemented a robust framework for safeguarding customer data through its Customer Privacy and Security
Systems. This enables the Company to uphold its reputation for maintaining high standards of integrity. To ensure the confidentiality
and security of our customers’ information, we have established IT policies and controls. We are dedicated to implementing adequate IT
controls to safeguard the integrity of customer data stored in our systems.
We implemented strict IT access controls to ensure that only authorised personnel can access relevant information. The Group have
proactive systems that ensure the IT control systems are continuously reviewed. We aim to ensure that we safeguard customer’s information
all the time and to avoid any cases of unauthorised access to our information systems.
Outlets Accessibility
Outlet accessibility is an important factor in providing convenience to customers, enhancing brand recognition, and driving business
performance. To achieve these goals, the Group is continuously expanding its store network, with a focus on strategic locations that cater
to its target customer base. Our Business Development Policy is designed to ensure that we have a presence in all key areas where our
customers are located. We carefully select and manage the sites for our branches to maximise accessibility and convenience. Our strategy
is informed by a rigorous performance-tracking mechanism, which enables us to evaluate the effectiveness of our approach and make
data-driven decisions.
Product Quality and Safety
Product quality and safety are critical aspects for our business to thrive in a competitive market. It ensures that our customers receive top-
notch products that meet their expectations and maintain the Company’s reputation. We buy from legitimate sources and top brands for
all our furniture, electronics and home appliances products, automotive spare parts and FMCG products. We have signed agreements with
world-class reputable suppliers to maintain range of quality products.
We have a team of experts who conducts quality standard checks on all products, to avoid substandard product from being dispatched to
all our outlets. The Managing Director oversees the quality of raw materials at the highest office level. For our furniture business, we have
experienced quality control officers who go over each product before dispatching it to the factory. We conduct regular training on both
the manufacturing team and the merchandising team to improve the quality of our products
Product Variety and Availability
As a business, product variety and availability ensure that customers in all our speciality retail have choices. By providing customers with
a wide range of options, we reduce the likelihood of customer grievances and increase the volume of sales, ultimately resulting in an
increased market share.
Our procurement strategy involves pre-planning and purchasing in large quantities to guarantee the availability of products. Our finance
teams also ensure the business has sufficient working capital and financing to maintain good relationships with our suppliers and prevent
stock-outs. We track this metric by customer consultations to understand the tastes and preferences so that we can have variety.
Timely Deliveries
Efficiently meeting customer demands is a crucial success factor for our business, and timely delivery plays a pivotal role in achieving this
objective. This ensures that customers receive their orders within the expected time frame, which not only satisfies their needs but also
helps to build a positive reputation for the business. Late deliveries usually lead to customer dissatisfaction, lost sales, increased costs and
an overall negative impact on the business’ bottom line. Therefore, Axia recognises the need to prioritise timely delivery and have effective
management strategies to ensure that products are delivered on time and in good condition.
To ensure timely delivery, we rely on our own fleet from Vital Logistics as well as distribution vehicles at TV Sales & Home. This gives us
greater control over product movement and enables us to monitor and track deliveries closely. Our efficient route management strategies
also help to streamline deliveries. In addition to our own fleet, we have strict arrangements with third-party transporters that include clear
delivery timelines and tracking mechanisms. This ensures that our products are delivered on time, regardless of geographical location.

HUMAN
CAPITAL
Employment 37
Labour Relations 39
Collective Bargaining 39
Occupational Health and Safety 40
Delivery Drivers Working Conditions 40
Accident & Safety 41
Training and Education 41

CONTRIBUTIONS
HUMAN CAPITAL
Employment
The Group employs competent and talented employees who provide excellent service to drive growth and improved
performance. We understand that not managing our employment practices may pose a negative impact on the Group in terms
of poor-quality service which may tarnish the Group’s reputation.
Our Recruitment Policy from the Human Resources departments guides us in providing fair and equal opportunities to all
potential candidates. To optimise human capital contribution to our performance, the Group provides a conducive work
environment grounded on the values of fairness, opportunity creation, integrity, non-discrimination, equal opportunities,
empowerment, decent working conditions, good health facilities and motivation activities. The engagement of employees
remains critical for our long-term success and we ensure operations comply with labour laws and voluntary and international
best labour practices. We continue to foster employee engagement and relations to drive productivity and performance.
As of 30 June 2023, our employee base was as follows;
Total Employees by Gender
2023 1 369 560
2022 1 770 361
2021 1 576 402
Male Female
Permanent and contract employees
2023 2022 2021

Male Female Male Female Male Female
Permanent 537 95 597 104 477 66
Contract 842 465 1 173 257 1 099 336
Total 1 369 560 1 770 361 1 576 402
Total employees by country
2023 2022 2021

Permanent Contract Permanent Contract Permanent Contract
Zimbabwe 595 1 051 667 1 113 513 1 222
Zambia 15 144 12 207 15 144
Malawi 22 102 22 110 15 69
Total 632 1 297 701 1 430 543 1 435

HUMAN CAPITAL (cont’d)
The following are third-party employees for the Group:
Third-Party Employees
2023
Contractors 675
Interns 18
Graduate Trainees 2
Total Workers 695
Our employee movement was as follows:
Employee Hire By Gender
2023 41 107
2022 50 232
2021 136 207
Male Female
Employee Hire By Age

55
2023 92
1
104
2022 178
0
120
2021 208
15
Under 30 years old 30-50 years old Over 50 year old

CONTRIBUTIONS
Employee Turnover by Gender
2023 125 225
2022 89 40
2021 95 240
Male Female
Employee Turnover by Age

196
2023 152
2
54
2022 75
0
204
2021 118
13
Under 30 years old 30-50 years old Over 50 year old
Labour Relations
Labour relations are the interactions between employers and employees, or their respective representatives, in the context of the
workplace. The purpose of labour relations management is to establish and maintain harmonious and productive relationships
that benefit both parties, contribute to the economic and social well-being of society and assist in maintaining the Group’s
reputation.
Collective Bargaining Agreements (CBA)
Axia Corporation Limited provides a work environment where employees can freely join workers’ unions of their choice. Currently,
the majority of employees belong to National Employment Councils for the following sectors:
• Motor industry
• Furniture and manufacturing industry
• Retailers and wholesalers
Below are employees under CBA:
Unit 2023 2022 2021

Employees on CBA Count 1 280 1 182 1 267
Percentage of total workforce % 68% 65% 64%

Defined Pension Contributions
The Group’s employees in Zimbabwe are covered under the Innscor Africa Pension Fund, Motor Industry Pension Fund and
National Social Security Authority. Regional employees are covered by the National Pension Scheme Authority (NAPSA - Zambia)
and the Group Pension Scheme operated by Nico Life in Malawi. Further details on Defined Contribution Pension Fund Coverage
have been disclosed on note 34 to the financial statements.
During FY2023, our pension contributions were as follows:
2023 2022
US$ US$
Regional Subsidiaries 58 504 58 123
Local Subsidiaries 285 594 228 382
Total 344 098 286 505
Occupational Health and Safety
Effective implementation of Occupational Health and Safety measures plays a critical role in maintaining a low staff turnover
hence enabling business continuity. Given the nature of tasks undertaken by employees in our fitment centres and CBS facilities,
which involves handling heavy tools and equipment, adherence to stringent health and safety practices becomes imperative.
Our Human Resources Policy outlines the measures and procedures we have in place to promote occupational health and
safety. Our goal is to protect all stakeholders and minimise the occurrence of health and safety incidents. Reported incidents
serve as an indicator of our commitment to upholding good occupational health and safety practices. Whenever an incident
is reported, a thorough review is conducted to ensure that all procedures are followed and to identify ways to prevent similar
incidents from recurring.
All employees are entrusted with the responsibility of ensuring proper storage, usage, and return of equipment to their
designated locations. The Branch Manager serves as the primary point of contact for employees and is responsible for escalating
issues to Retail Managers or, when necessary, the HR Manager or Managing Director. Our employees are required to read the
employee handbook and signage posted throughout the workplace. In addition, Axia Corporation Limited provides medical aid
as part of its employee welfare. Our workers’ committee serves as a liaison between the employees and the management team.
For FY2023, our injures were as
Unit 2023 2022 2021

Fatality from work-related injury Count 1 - -
Recordable work-related injuries Count 10 6 15
Lost Days due to injury Days 7 - -
Delivery Drivers Working Conditions
The success of our business, mainly the Distribution Group Africa subsidiary relies on the well-being and satisfaction of our
drivers. As such, the Group prioritises driver working conditions and ensures the safety of all its drivers. This in return enhances
their morale, reduces road accidents and ultimately improving the quality of service.
As Axia, we consider our drivers to be equal to other employees and we strive to be the employer of choice. Our approach is to
provide a working environment that is not detrimental to the well-being of our drivers. We monitor our actions by evaluating
departmental employee turnover rates and the causes to identify if any are related to poor working conditions.

CONTRIBUTIONS
Accident and Safety Management
Accident and safety management are crucial aspects of our distribution subsidiary. We aim to provide our customers with high-
quality products and services while ensuring the well-being of our employees and the environment. Accidents lead to loss of
business due to product damages, increased costs in repairs of our fleet and compensation for any injuries that occur to our staff
or third parties. As such, all drivers are constantly reminded to adhere to road and traffic rules as this helps to reduce accidents
and improve safety. Employees are encouraged to take regular breaks and leave so that fatigue does not become a cause of
accidents.
Training and Education
Through our education and training initiatives, we experience improved financial performance from service delivery which
increases the potential for revenue generation. Investing in human capital development ensures that employees are well-
motivated, and equipped to provide efficient and effective customer service and production.
We are committed to ensuring that employees are trained at the highest level improve their skill base and are able to deliver
value to the Company in line with our Human Resources Policies. We aim to ensure that all employees are knowledgeable in
their line of work. For the period under review, the Group made great progress towards achieving the set goals.
Average Training hours by Gender Unit 2023 2022 2021

Male Hours 21 21 25
Female Hours 26 20 21

SUSTAINABLE
OPERATIONS
Water 43
Energy 43
Waste 44
Procurement 44

CONTRIBUTION
SUSTAINABLE OPERATIONS
Operating in a sustainable manner is core to Axia Corporation Limited. We strongly believe that sustainable operations have
significant impacts on our business, the environment and society. We take all measures to reduce negative impacts associated
with water, energy, waste and our procurement.
Water
As Axia Corporation Limited, we understand that water and effluent management is a critical component of a sustainable future
that has significant implications for financial performance and regulatory compliance. Proper water and effluent management
practices can help in reducing our environmental footprint. Our operations are not water intensive; however, we understand that
we operate in areas threatened by water scarcity and our efforts to reduce our water consumption can make a huge difference.
As a speciality retail and distribution Group, water is mainly used for cleaning, sanitisation and consumption purposes. We are
committed to ensuring that all premises have good drainage linked to the municipal pipes, to ensure proper disposal, therefore
we conduct proper site inspections before securing a retail site. All effluent goes through the normal approved drainage system.
Senior officials conduct site visits to our branches and fitment centres to assess water consumption. Our goal is to ensure that
all employees at the various sites are using water sparingly. Water bills will show any wastages in water consumption which
indicates progress towards water conservation.
For the reporting period our water consumption is below:
Water Consumption - m3
2023 76 125 1 273 650
2022 75 150 1 237 871
2021 196 316 1 288 342

0
Municipal Borehole
Energy
Proactively managing energy consumption brings significant benefits to Axia Corporation, by implementing responsible energy
practices, we build a reputation as a sustainable business and increase profitability through cost savings. However, it’s equally
important to avoid the potential negative impacts of poor energy management, such as a bad reputation, increased operational
costs, and reduced profitability. We use most of our energy for our gadgets, lighting, and heating in the normal course of our
business.
We are committed to ensuring the optimum utilisation of energy and switching off lights when not in use. We aim to minimise
energy costs by replacing electricity with solar energy, a recommendation from stakeholder engagements. We periodically
conduct a review of energy costs to track our energy usage.
Our energy consumption is below:
Liquid Fuel - Litres
2023 154 076 1 536 456
2022 664 046

39 330
2021 206 481 1 288 342
Petrol Diesel

SUSTAINABLE OPERATIONS (cont’d)
Electricity - KWh
2023 2 319 519
2022 2 413 061
2021 1 555 170
Waste
Axia Corporation Limited recognises the importance of adopting and executing strategies that effectively minimise our waste’s
environmental impact while keeping costs low. Therefore, we established comprehensive procedures that ensure compliance
with regulatory standards and cost-effective waste management.
We are committed to ensuring that waste is disposed of in the recommended ways, to contribute to a clean city. We ensure that
bins and proper ablution rooms are availed at all premises we operate from to ensure that we keep our environment clean. As a
retail and distribution business, we do not generate hazardous waste and all our non-hazardous waste disposal is done through
the general sewer and garbage system. Waste generated in our operations comprises mostly plastics and cardboard. We dispose
of our waste through third-party recycling and municipal facilities. The Group continues to encourage responsible disposal
of waste and its reclamation. Senior Company Officials conduct site visits and disciplinary action is taken against any Branch
Managers with unclean premises to ensure that shops and fitment centres are clean and have bins. This has been effective as we
have not had problems during the year under review.
Procurement
We make it a priority that we maintain good relations with our suppliers to reduce the risk of disruptions which may take place
due to late deliveries.
Our Procurement Policies guide the decision-making processes on issues to do with responsible sourcing and supply chain
management. Our commitment is to give a fair chance to all vulnerable groups and ensure we adhere to ethical procurement
procedures. We carry out strict supplier vetting processes to ensure that we engage reliable, ethical and high-quality partners.
Our goal is to ensure that we deal with reputable suppliers within the vulnerable groups. However, it has been difficult to be
inclusive of vulnerable groups due to the nature of our products.

CONTRIBUTION
CLIMATE
CHANGE
Climate Change 46
Greenhouse Gas (GHG) Emissions 46

CLIMATE CHANGE
Environmental Stewardship is a key priority for Axia Corporation Limited. We recognise the importance of protecting the natural
environment and reducing our impact on climate change. We are committed to implementing sustainable practices throughout
our operations, and to reducing our carbon footprint.
Climate Change
Managing climate change shows our commitment to sustainability and improving our reputation as responsible corporate
citizens. Non-compliance with environmental regulations can result in fines and other penalties potentially resulting in the loss
of business partnerships and customers. Given the nature of our business and size, we can play a significant part in mitigating
climate change by reducing our dependence on fossil fuels and paper.
Greenhouse Gas Emissions (GHG)
As Axia Corporation Limited, we are committed to implementing a comprehensive emissions measurement and reduction
strategy to enhance our environmental impact and comply with pertinent regulations while demonstrating our commitment
to corporate responsibility.
We established a comprehensive Vehicle Maintenance program that provides detailed guidelines and procedures for the
maintenance and servicing of our vehicles. The primary objective of this program is to reduce our Scope 1 emissions by
minimising fuel usage and optimising vehicle performance. To achieve this objective, our operations managers carry out periodic
inspections of vehicles to ensure that they are in optimal working condition and that all necessary servicing and maintenance
tasks are performed promptly and efficiently.
Being a responsible business, we categorised our greenhouse gas (GHG) emissions into two types - Scope 1 and Scope 2. Scope
1 emissions are the direct emissions resulting from Group’s operations, including fuel consumption by generators and vehicles,
which are under its control. Scope 2 emissions are indirect emissions resulting from the consumption of energy generated and
supplied by a third party, over which Axia Corporation Limited Group has no control.
We calculate our carbon footprint by converting energy consumption into carbon dioxide (CO) equivalency using internationally
accepted conversion factors. To calculate our Scope 1 and Scope 2 emissions, we used emission factors obtained from the UK
Government’s GHG Conversion Factors and the Southern African Power Pool 2015, respectively.
For FY23, our GHG Emissions are below:
Scope 1: Emissions
2023 470 234 3 303 308
2022 119 957 1 427 699
2021 629 767 2 769 935
Petrol Diesel
KgCO2elitres

CONTRIBUTION
CLIMATE CHANGE (cont’d)
Scope 2: Emissions
2023 815 543
2022 848 332
2021 546 798
Kg CO2eKWh

COMMUNITY
RESPONSIBILITY
AND ECONOMIC
CONTRIBUTIONS
Community Responsibility 49
Direct Economic Value Generation and Distribution 50
Tax 50

CONTRIBUTIONS
COMMUNITY RESPONSIBILITY
Our Corporate Social Responsibility (CSR) Programmes are designed to uplift the communities in which we operate. We educate
various groups such as the youth on how to help themselves in times of emergencies such as changing car tyres. We provide
financial support to organisations within our communities as part of our corporate responsibility initiatives. All this is an effort
to act as good citizens and avoid reputational damage which may arise due to a lack of corporate responsibility management.
The Group believes that environmental and social factors are part of the business operations and strategy. Therefore, responding
to impacts from the Group’s operations is a responsibility and business objective that has the potential to maintaining our long-
term business values. The Group units engage with communities and other stakeholder groups to identify potential needs and
contributions. We believe that the well-being of the society is integral in providing business opportunities and human capital,
therefore the Group’s investment is vital.
The following are our priorities in relation to social cohesion management:
• Providing employment opportunities

• Minimise workplace health and safety incidents
• Enhancing employee well-being and capacity
• Supporting community development
We are committed to giving back to the communities in which we operate in line with our CSR Policy. The Company has a target
of getting itself involved in at least 4 corporate social responsibility activities each year. At the end of each year, management
reviews the number of activities conducted to assess their impact on the community. For the year under review, the Group
undertook a number of initiatives aimed at assisting various social initiatives. Feedback from stakeholders has revealed how our
actions have been appreciated.
For FY2023, the Group contributed the following:
Purpose of Investing in the

Target Area Theme Beneficiaries Items Donated SDG
Education Supporting education access • HIT. • Stationery
from early education to adult • SDA Youth Camp.
education. • Shinning Smiles
School
• Hellenic Primary
School.
Philanthropy Supporting public institutions • Public Institution • Groceries for

in the delivery of services (ZRP) graduation.

COMMUNITY RESPONSIBILITY AND ECONOMIC
CONTRIBUTIONS
DIRECT ECONOMIC VALUE GENERATION AND DISTRIBUTION
Axia Corporation Limited contributes to the overall economic development through payment of taxes and providing
employment opportunities thus improving the well-being and standards of living in the countries we operate. Our vision is
to create value through the provision of high-quality consumer and durable goods in all regions where we operate. Improved
business performance amplifies the distribution of wealth across our stakeholders helping alleviate societal economic challenges.
In line with our commitment to building a sustainable business that adds value to society, we reinforced our approach of making
use of experienced teams with industry expertise, deep market knowledge and entrepreneurial creativity to sustain growth in
the long term. The Group is always seeking ways to bolster performance so that it continues to add value to its shareholders,
society, government, employees and suppliers among other stakeholders in our operations.
Our dedication is to become a responsible Group through timeous payment of taxes and subscriptions and ensure we remain
viable and able to contribute to the economy. The key indicator for success will be profit as shown in the Company’s financial
statements. The Group generates economic value through retail, distribution and maintenance services. The direct economic
value generated and distributed is presented in the financial statements on pages 59 to 108.
Tax
Through our tax payments, we contribute to the total revenue of the nation which contribute to economic development. Tax is
computed at the company level with reviews carried out from the head office every quarter. We ensure tax returns are submitted
and the amount due is paid in a timely manner to reduce the risks associated with penalties. Adding on, we attend tax seminars
to learn about the latest tax regulations and gain insight from experts on how to optimise tax planning and filling strategies.
We have a liaison officer who identifies and reports any risks or opportunities related to tax matters. Our goal is to remain a
compliant business paying particular attention to due dates and eliminating penalties due to non-compliance.
Tax payments by country
In FY2023 our tax payments are below:
2023 2022
US$ US$
Zimbabwe 19 093 121 18 784 639
Zambia 231 366 290 005
Malawi 455 167 573 267
Total 19 779 654 19 647 911

CONTRIBUTIONS
FINANCIAL
REPORTS
Report of the Audit and Risk Committee 52
Directors’ Responsibility and Approval of Financial Statements 54
Certificate of Compliance by the Company Secretary 54
Report of the Directors 55
Report of the Independent Auditors 56
Group Statement of Profit or Loss and Other Comprehensive Income 59
Consolidated Statement of Financial Position 60
Consolidated Statement of Changes in Equity 61
Consolidated Statement of Cash Flow 62
Notes to the Financial Statements 63

REPORT OF THE AUDIT AND RISK COMMITTEE
The Audit and Risk Committee assists the Board in the fulfilment of its duties. The Audit and Risk Committee of the Board
deals, inter alia, with financial reporting, compliance, internal control and risk management. It receives reports from the Group
Finance Director, Internal Auditors, External Auditors and Company Secretary and meets at least three times a year.
Financial Reporting
The Committee reviews the interim and full year financial statements before their submission to the Board for Approval. The
Committee also advises the Board on changes in accounting standards and their implication on financial reporting. Key issues
discussed in the financial year relate to:
i) Compliance with International Accounting Standard (IAS) 21: Effects of changes in Foreign Exchange rates.
The Directors are of the opinion that using the provisions of IAS 21 to convert the Group’s inflation-adjusted financial
statements from previous period, as a basis for presenting comparative and opening statement of financial position
information in the new functional currency, will result in material misstatement of the Group’s comparative financial
statements. Therefore, the Group applied alternative procedures and techniques in the translation of ZWL financial
statements to USD financial statements in an endeavour to present the best possible view of the comparative financial
performance and position of the Group, in terms of the newly assessed functional currency.
ii) Key estimates, uncertainties, and judgements.

These include determination of useful lives and residual values for property, plant and equipment, provision for obsolete
stock, the calculation of the loss allowance, valuation of Zimbabwe Dollar denominated assets and liabilities. A detailed
disclosure of these estimates, uncertainties and judgements was included in the Group Financial statements as part of
the notes to the financial statements.
iii) Appropriateness of the going concern basis of accounting.

This was discussed, noting the macro-economic challenges in Zimbabwe.
Risk management and internal controls

The Committee looked into a wide range of matters with management, internal auditors and external auditors with respect to
identified risks and responses thereon. The Group’s Risk register, which is updated and reviewed quarterly was shared with the
Committee. Below is a summary of matters and work performed by the Committee:
i) Received and reviewed regular reports form the Group Internal Auditors on work performed against the Audit plan, Audit
findings, management responses, evaluation of mitigating controls (if any) and remedial action as required.
ii) Received reports from the Group Finance Director and Group Internal Auditors on frauds and losses. Work covered special
investigations on identified matters and the Committee tracked these to the point of appropriate resolution and remedial
action on any control weaknesses identified.
iii) Received and discussed regular reports from the Company Secretary and Group Finance Director on matters of
compliance, matters regarding corporate governance, changes in regulatory requirements (such as the new Companies
and Other Business Entities Act Chapter 24:31) and specific relevant litigations.
iv) Received updates and reviewed progress on new ERP system adoptions at the Distribution business (SAP Business One)
and at TVSH (Open Bravo).
v) Received regular reports from the Group Finance Director on Group treasury and borrowings arrangements, changes
thereof specifically noting the impact of shortages in foreign currency and liquidity challenges in the banking sector.

CONTRIBUTIONS
REPORT OF THE AUDIT AND RISK COMMITTEE (cont’d)
External Audit Independence and Effectiveness

The Committee received confirmation of independence from the Group’s external auditors, BDO Chartered Accountants
(Zimbabwe) as required by the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants
and the relevant standards from the Public Accountants and Auditors Board.
The Committee meets separately with internal and external auditors without management.
Mr. T. Sibanda
Audit Committee Chairman
27 October 2023

DIRECTORS’ RESPONSIBILITY AND APPROVAL OF
FINANCIAL STATEMENTS
The Directors of Axia Corporation Limited are responsible for the preparation and fair presentation of the Group’s consolidated financial
statements. The audited financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and
in the manner required by the Companies and Other Business Entities Act (Chapter 24:31) and the Victoria Falls Stock Exchange (“VFEX”) listing
requirements except for the non-adherence to International Accounting Standard (IAS) 21“The Effects of Changes In Foreign Exchange Rates”.
The principal accounting policies of the Group are consistent with those applied in the previous annual financial statements except for the
revaluation of Property, Plant and Equipment that was changed from prior year’s cost model.
The financial statements are prepared with the objective of complying fully with International Financial Reporting Standards (IFRS). Complying
with IFRSs achieves consistency with the financial reporting framework adopted by the Company and the Group since its inception. Using a
globally recognized reporting framework also facilitates understandability and comparability with similar businesses and allows consistency in
the interpretation of the financial statements.
IAS 21 directs that entities operating in hyperinflationary economies should translate their last reported inflation-adjusted financial statements
using the closing rate of exchange at the reporting date in order to derive and present comparative financial statements under a newly
assessed functional currency.
The Directors are of the opinion that using the provisions of IAS 21 to convert the Group’s inflation-adjusted financial statements from previous
period, as a basis for presenting comparative and opening statement of financial position information in the new functional currency, will
result in material misstatement of the Group’s comparative financial statements. Therefore, the Group applied alternative procedures and
techniques in the translation of ZWL financial statements to USD financial statements in an endeavour to present the best possible view of the
comparative financial performance and position of the Group, in terms of the newly assessed functional currency.
The Directors have satisfied themselves that the Group is in a sound financial position and has adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they are satisfied that it is appropriate to adopt the going concern basis in preparing the
financial statements.
The Board of Directors recognises and acknowledges its responsibility for the Group’s systems of internal financial control. Axia Corporation
Limited maintains internal controls and systems that are designed to safeguard the assets of the Group, prevent and detect errors and fraud
and ensure the completeness and accuracy of the Group’s records.
The Group’s Audit Committee has met the external auditors to discuss their reports on the results of their work, which includes assessments
of the relative strengths and weaknesses of key control areas. Any breakdowns in established control procedures have been reported to
the Group’s Audit Committee and the Board.
The Group and Company External Auditors, BDO Zimbabwe Chartered Accountants, have audited the financial statements and their reports
appear on pages 56 to 58 and 110 to 112 for the Group and Company financial statements respectively.
Preparer of Financial Statements

The financial statements were prepared by Axia’s finance department under the supervision of the Executive Director, Mr Ray Rambanapasi
(Chartered Accountant Zimbabwe (CA (Z), PAAB Registration number 479).
Approval of Financial Statements

The Group and Company financial statements for the year ended 30 June 2023, which appear on pages 59 to 108 and 113 to 120 respectively,
have been approved by the Board of Directors and are signed on its behalf by:
LEM NGWERUME R M RAMBANAPASI

Chairman Executive Director
27 October 2023 27 October 2023
COMPANY SECRETARY’S CERTIFICATION

For the year ended 30 June 2023
I certify that, to the best of my knowledge and belief, the Company has lodged with the Registrar of Companies all such returns as are required
to be lodged by the Public entity in terms of the Companies and Other Business Entities Act (Chapter 24:31) of the Republic of Zimbabwe, and
all such returns are true, correct and up to date. I also confirm that the Company has complied with the Victoria Falls Stock Exchange Listing
Regulations.
Prometheus Corporate Services (Private) Limited

Company Secretary
Harare
27 October 2023

CONTRIBUTIONS
REPORT OF THE DIRECTORS

The Directors have pleasure in presenting their report together with the audited financial statements of the Group for the year
ended 30 June 2023.
Share Capital
At 30 June 2023 the authorised share capital of the Company was comprised of 999 999 000 ordinary shares of USD 0.0001 each
and 1 000 Non-Voting Class “A” ordinary shares of USD 0.0001 each. The Issued share capital was at USD 55 600 (2022: 55 600)
divided into 556 000 308 (2022: 556 000 308) ordinary shares of USD 0.0001 each and 1 000 Non-voting Class “A” ordinary shares
of USD 0.0001 each.
Group Results
30 June 30 June
2023 2022
USD USD
Profit before tax 11 186 771 16 516 199
Tax expense (5 003 263) (6 455 728)
Profit for the year 6 183 508 10 060 471
Non-controlling interests (2 423 581) (4 441 336)
Profit for the year attributable to equity holders of the parent 3 759 927 5 619 135
Dividends
Ordinary shares
The Board declared an interim dividend of USD0.0018 (0.18 US cents) per share in respect of all ordinary shares of the Company.
The Board also declared a final dividend of USD0.0010 (0.10 US cents) per share in respect of all ordinary shares of the Company
in relation to the financial year ended 30 June 2023. The total dividend in respect of the financial year ended 30 June 2023 is USD
0.0028 (0.28 US cents).
Non-voting class “A” ordinary shares - Axia Corporation Employee Share Trust
The Board declared an interim dividend of USD50 000 to the Axia Employee Trust (Private) Limited. The Board has also declared a final
dividend of USD25 000 to the Axia Corporation Employee Trust (Private) Limited for the financial year ended 30 June 2023.
Directors and their Interests

In terms of the articles of association Mr. T Sibanda and Mrs. T Mazingi retire by rotation at the Annual General Meeting and being
eligible offer themselves for re-election. No Directors had, during or at the end of the year, any material interest in any contract
of significance in relation to the Group’s businesses. The beneficial interests of the Directors in the shares of the Company are
given in note 23.3 of the financial statements.
Directors’ Fees
Members will be asked to approve the payments of the Directors’ fees in respect of the financial year ended 30 June 2023 (note
10.2.2)
Auditors
Members will be asked to approve the remuneration of the auditors for the financial year ended 30 June 2023.
For and on behalf of the Board.


Tel/Fax: +263 242 703876/7/8 Kudenga House
Cell: +263 772 573 266/7/8/9 3 Baines Avenue
bdo@bdo.co.zw P.O. Box 334
www.bdo.co.zw Harare
Zimbabwe
REPORT OF THE INDEPENDENT AUDITORS
TO THE MEMBERS OF
AXIA CORPORATION LIMITED AND ITS SUBSIDIARIES
Adverse Opinion
We have audited the consolidated financial statements of AXIA CORPORATION LIMITED AND ITS SUBSIDIARIES
which comprise the statement of financial position as at 30 June 2023, the statement of profit or loss and other
comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies.
In our opinion, because of the significance of the matters discussed in our Basis for Adverse Opinion section of our
report, the consolidated financial statements do not present fairly, the financial position of AXIA CORPORATION
LIMITED AND ITS SUBSIDIARIES as at 30 June 2023, and its financial performance and cash flows for the year then
ended in accordance with International Financial Reporting Standards.
Basis for Adverse Opinion
Non-compliance with International Accounting Standard 21 (IAS 21), The Effects of Changes in Foreign Exchange
Rates and International Accounting Standard 29 (IAS 29), Financial Reporting In Hyperinflationary Economies.
a) Comparative financial information and opening balances.
The Group’s functional currency before the change to United States dollar was ZWL, which is a currency
of a hyperinflationary economy. In terms of International Accounting Standard 21 (IAS 21), The Effects of
Changes in Foreign Exchange Rates, the results and financial position of an entity whose functional currency
is the currency of a hyperinflationary economy shall be translated into a different presentation currency by
applying the closing rate on the inflation adjusted statement of financial position on the date of the change.
The Group did not adopt as its opening balances and comparative financial information, balances derived
in terms of IAS 21 and IAS 29, as described above, instead the Group converted its historical balances and
transactions using the monthly average exchange rates and spots rates.
The non compliance with IAS 21 on comparative financial statements and opening balances resulted in the
overstatement of property, plant and equipment by USD 13,097,407, overstatement of inventories by USD
15,649,392, and overstatement of shareholders’ equity by USD 28,746,799.
Our opinion on the current year financial statements is modified because of the effects opening balances
have on current year financial results and the comparability of current year financial results with those of
prior year.
b) Use of monthly average exchange rates to translate transactions to functional currency.
The Group’s functional currency changed from ZWL to USD on 1 July 2022 but the Group continued to record
transactions in ZWL for the period 1 July 2022 to 31 May 2023. The transactions were translated to the
functional currency at monthly average rates. Due to the volatility of exchange rates between the United
States dollar and the Zimbabwean dollar for the period, 1 March to 31 May 2023 where the ZWL depreciated
by approximately 133%, a monthly average exchange rate cannot be considered to approximate the actual
rate of exchange on the day of a transaction. IAS 21 paragraph 22, states that the use of an average rate
is inappropriate if exchange rates fluctuate significantly. The financial impact of the non compliance with
IAS 21 could not be determined but it is considered to be material to the financial statements. Due to the
significance of the non compliance, we cannot express an opinion on the accuracy of revenue, expenses and
exchange gains and losses.
BDO Zimbabwe, a Zimbabwean partnership, is a member of BDO International Limited, a UK company limited by guarantee and forms part of the international BDO
Network of independent member firms.
A list of partner names is available for inspection at our registered office, No. 3 Baines Avenue, Harare.

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of Financial Statements
section of our report. We are independent of the Group in accordance with the International Ethics Standards
Board for Accountants’ Code of Ethics for Professional Accountants (Parts A and B), together with other ethical
requirements that are relevant to our audit of financial statements in Zimbabwe, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that in our professional judgement were of most significance in our audit
of financial statements. Except for the matters described in the Basis for Adverse Opinion section, we have
determined that there are no other key audit matters to communicate in our report.
Other Information
The Directors are responsible for other information. The other information comprises the information included
in the annual report which includes the Performance Review Report, The Strategic Leadership and Governance
Report, The Business Conduct and Compliance Report, The Sustainability Report, The Customer Service Report,
The Human Capital Report, The Sustainable Operations Report, The Climate Change Report, The Community
Responsibility and Economic Contributions Report and The Directors’ Report. The other information does not
include the audited financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
an audit opinion or any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with audited
financial statements or our knowledge obtained in the audit, or other wise appears misstated. If based on the
work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements

The Directors are responsible for the preparation and fair presentation of the financial statements in accordance
with International Financial Reporting Standards and for such internal controls as the directors determine are
necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue
operating as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or
have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with International Standards on Auditing (ISAs) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.

• Conclude on the appropriateness of the Group’s use of the going concern basis of accounting and based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue operating as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’
report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
Report on other legal and regulatory requirements

In our opinion, due to the impact of the matters discussed in the Basis for Adverse Opinion section of our
report, the consolidated financial statements of the Group are not properly drawn up in accordance with the
requirements of Section 193(1)(a) of the Companies and Other Business Entities Act (Chapter 24:31).
The audit engagement partner on the audit resulting in this independent auditors report is Davison Madhigi (PAAB
Practising Number 0610)
__________________________________
BDO Zimbabwe
Chartered Accountants
27 October 2023
Kudenga House
3 Baines Avenue
Harare

CONTRIBUTIONS
GROUP STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Notes 2023 2022
USD USD
Revenue 8 203 749 965 204 181 128
Cost of sales ( 147 053 667) ( 148 648 068)
Gross profit 56 696 298 55 533 060
other income 9 3 811 103 3 979 050

operating expenses 10 ( 39 350 088) (34 716 520)
net impairment loss on trade and other receivables 10 ( 312 677) ( 108 500)
Operating profit before impairment, depreciation and fair value

adjustments 20 844 636 24 687 090
financial loss 11 ( 832 115) ( 662 568)

depreciation of property plant and equipment and right of use
assets (5 571 963) (5 266 617)
property plant and equipment 16 (2 751 848) (3 919 313)
right of use asset 17 (2 820 115) (1 347 304)
fair value adjustments on listed financial assets ( 211 382) ( 323 924)
Profit before interest, equity accounted earnings and tax 14 229 176 18 433 981
interest income 40 783 107 391

interest expense 12 (3 261 348) (2 635 686)
equity accounted earnings 18 178 160 610 513
income tax expense 13 ( 5 003 263) (6 455 728)
Other comprehensive income - to be recycled to profit or loss
exchange differences arising on the translation of foreign operations ( 875 564) ( 939 926)
revaluation of property, plant and equipment 5 209 654 -
tax on fair value adjustments of property, plant and equipment (1 476 357) -
Other comprehensive income for the year, net of tax 2 857 733 ( 939 926)
Total comprehensive income for the year 9 041 241 9 120 545
Profit for the year attributable to:

equity holders of the parent 3 759 927 5 619 135
non-controlling interests 2 423 581 4 441 336
6 183 508 10 060 471
Total comprehensive income for the year attributable to:

equity holders of the parent 5 190 963 5 149 172
9 041 241 9 120 545
Earnings per share (cents)
Basic earnings per share 6 0.68 1.02
Headline earnings per share 6 0.67 1.01
Diluted basic earnings per share 6 0.68 1.01
Diluted headline earnings per share 6 0.67 1.01
The above Group statement of profit or loss and other comprehensive income should be read in conjuction with the
accompanying notes.

GROUP STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Notes 2023 2022

USD USD
ASSETS
Non-current assets
property, plant and equipment 16 28 949 225 19 971 864
right of use asset 17 12 915 358 2 690 745
investments in associates and joint ventures 18 1 849 953 1 907 095
deferred tax assets 28 224 443 721 670
43 938 979 25 291 374
Current assets
financial assets at fair value through profit or loss 20 505 782 373 521
inventories 21 38 654 485 41 159 097
trade and other receivables 22 32 238 750 23 835 444
cash and cash equivalents 2 839 285 5 723 036
74 238 302 71 091 098
Total assets 118 177 281 96 382 472
EQUITY AND LIABILITIES
Capital and reserves

ordinary share capital 55 600 55 600
share premium 3 620 572 3 620 572
non-distributable reserves 25 ( 2 637 855) ( 4 068 891)
distributable reserves 26 33 142 229 31 349 454
Attributable to equity holders of the parent 34 180 546 30 956 735
Total shareholders’ equity 61 731 823 56 511 075
Non-current liabilities
deferred tax liabilities 28 2 417 510 449 318
lease liabilities 17 9 086 201 1 452 780
11 503 711 1 902 098
Current liabilities
interest-bearing borrowings 29 12 879 341 9 689 942
lease liabilities 17 3 747 809 1 413 679
trade and other payables 30 26 021 679 21 823 403
provisions 31 519 808 960 477
current tax liabilities 1 773 110 4 081 798
44 941 747 37 969 299
Total liabilities 56 445 458 39 871 397
Total equity and liabilities 118 177 281 96 382 472
The above Group statement of financial position should be read in conjuction with the accompanying notes.
______________________________ ______________________________

CONTRIBUTIONS
GROUP STATEMENT OF CHANGES IN EQUITY

Attributable to equity holders of the parent
Share
Ordinary NDR based Non- Non-
Share Share payments Distributable Distributable controlling
Capital premium reserve Reserves * Reserves Total Interests Total
USD USD USD USD USD USD USD USD
Balance at 30 June 2021 55 215 2 186 350 392 800 ( 3 598 928) 27 334 349 26 369 786 23 113 986 49 483 772
Profit for the year - - - - 5 619 135 5 619 135 4 441 336 10 060 471
Other comprehensive loss - - - (469 963) - ( 469 963) ( 469 963) ( 939 926)
Total comprehensive (loss)/ income - - - (469 963) 5 619 135 5 149 172 3 971 373 9 120 545
Issue of shares through exercising share

options 385 1 007 930 - - - 1 008 315 - 1 008 315
Realisation of share option reserve - 426 292 (426 292) - - - - -
Recognition of share based payments

expense - - 33 492 - - 33 492 - 33 492
Dividends declared (note 7.2) - - - - ( 1 604 030) ( 1 604 030) ( 2 663 355) ( 4 267 385)
Transactions with owners in their capacity

as owners - - - - - - 1 132 336 1 132 336
Balance at 30 June 2022 55 600 3 620 572 - ( 4 068 891) 31 349 454 30 956 735 25 554 340 56 511 075
Profit for the year - - - - 3 759 927 3 759 927 2 423 581 6 183 508
Other comprehensive income - - - 1 431 036 - 1 431 036 1 426 697 2 857 733
Total comprehensive income - - - 1 431 036 3 759 927 5 190 963 3 850 278 9 041 241
Dividends declared (note 7.2) - - - - ( 1 967 152) ( 1 967 152) ( 1 933 341) ( 3 900 493)
Transactions with owners in their capacity

as owners - - - - - 80 000 80 000
Balance at 30 June 2023 55 600 3 620 572 - ( 2 637 855) 33 142 229 34 180 546 27 551 277 61 731 823
* Non distributable reserves is comprised of foreign currency translation reserves and revaluation reserves. See note 25.
The above Group statement of changes in equity should be read in conjuction with the accompanying notes.

GROUP STATEMENT OF CASH FLOWS
AS AT 30 JUNE 2023
Notes 2023 2022

USD USD
Cash generated from operations 14.1 15 932 723 24 339 604

interest expense 12 ( 3 261 348) ( 2 635 686)
tax paid ( 5 485 350) ( 5 286 786)
Total cash generated from operating activities 7 226 808 16 524 523
Investing activities 14.3 ( 6 616 644) ( 14 335 416)
Net cash (outflow)/ inflow before financing activities 610 164 2 189 107
Financing activities ( 3 493 915) ( 2 597 405)

dividends paid by holding company ( 1 715 124) ( 1 604 030)
dividends paid by subsidiaries to non-controlling interests ( 1 120 296) ( 2 238 072)
issue of new shares - 7 755
cash payments for the principal portion of the lease liabilities ( 3 180 017) ( 1 100 861)
proceeds from interest-bearing borrowings 14.4 13 756 927 6 547 005
repayment of interest-bearing borrowings 14.4 ( 11 235 405) ( 4 209 202)
Decrease in cash and cash equivalents ( 2 883 751) ( 408 298)
Cash and cash equivalents at the beginning of the year 5 723 036 6 131 334
Cash and cash equivalents at the end of the year 2 839 285 5 723 036
The above Group statement of cashflows should be read in conjuction with the accompanying notes.

CONTRIBUTIONS
NOTES TO THE FINANCIAL STATEMENTS

1 Corporate Information
The consolidated financial statements of Axia Corporation Limited for the year ended 30 June 2023 were authorized
for issue in accordance with a resolution of the Directors on 20 September 2023. Axia Corporation Limited is a limited
liability company incorporated and domiciled in Zimbabwe whose shares are publicly traded on the Victoria Falls
Stock Exchange (“VFEX”). The Group operates within the specialty retail and distribution industries selling products
such as homeware furniture, electrical appliances and automotive spares and accessories as well as the distribution of
many locally and internationally branded FMCG products into the general retail and wholesale sectors whilst offering
logistics, transport, marketing, merchandising, storage and maintenance services thereon. The registered office is 1st
Floor, Edward Building, Corner Nelson Mandela/First Street, Harare and the physical address of the Corporate office is 6
Kenilworth Road, Newlands, Harare.
2 Statement of compliance
The Group’s financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRSs) and in the manner required by the Companies and Other Business Entities Act (Chapter 24:31) and the Victoria
Falls Stock Exchange listing requirements. The principal accounting policies of the Group are consistent with those
applied in the previous annual financial statements except for the revaluation of property, plant and equipment which
the Group adopted effective 30 June 2023..
2.1 Going concern

The Directors have satisfied themselves that the Group and Company are in a sound financial position and
have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they are
satisfied that it is appropriate to adopt the going concern basis in preparing the consolidated and separate
financial statements.
2.2 Basis of preparation

The consolidated financial statements have been prepared in accordance with the recognition and measurement
requirements of International Financial Reporting Standards, the requirements of the Companies and Other
Business Entities Act (Chapter 24:31), VFEX Listing rules and relevant statutory instruments. The financial records
were prepared based on statutory records that are maintained under the historical cost convention except for
revaluation of property plant and equipment. The Group reassessed its functional currency determination in
compliance with the requirements of IAS 21, ‘The Effects of Changes in Foreign Exchange Rates’ and concluded
that, effective from 1 July 2022, the functional currency of Axia Corporation Limited changed from the ZWL to
the US dollar. The consolidated financial statements are presented in United States of America Dollars (“US$”)
and all values are rounded to the nearest dollar, except where otherwise indicated. The principal accounting
policies applied in the preparation of the consolidated financial statements are in terms of IFRS except for
the non-compliance with IAS 21, ‘The Effects of Change in Foreign Exchange Rates’ and have been applied
consistently in all material respects with those of the previous consolidated annual financial statements.
Change in functional and presentation currency
Change in functional currency for Zimbabwean Operations

The Group had a steady increase in the use of foreign currency across its businesses and reassessed its functional
currency in accordance with the requirements of IAS 21. The Group concluded that based on the primary
operating environment and the Group’s own operating activities, there had been a change in its functional
currency from Zimbabwean Dollar (“ZWL”) to United States Dollars (“USD”) with effect from the beginning of the
current financial year. IAS 21 directs that entities operating in hyperinflationary economies should translate their
last reported inflation-adjusted financial statements using the closing rate of exchange at the reporting date
in order to derive and present comparative financial statements under a newly assessed functional currency.
The Directors are of the opinion that using the provisions of IAS 21 to convert the Group’s inflation-adjusted
financial statements from previous period, as a basis for presenting comparative and opening statement of
financial position information in the new functional currency, will result in material misstatement of the Group’s
comparative financial statements. Therefore, the Group applied alternative procedures and techniques in
the translation of ZWL financial statements to USD financial statements in an endeavour to present the best
possible view of the comparative financial performance and position of the Group, in terms of the newly
assessed functional currency.

NOTES TO THE FINANCIAL STATEMENTS (cont’d)
2 Statement of compliance (continued)
2.2 Basis of preparation (continued)
Change in functional currency for Zimbabwean Operations (continued)
The Directors have always exercised reasonable due care and applied judgments that they considered to be
appropriate in the preparation and presentation of the Group’s financial statements, and whilst they believe that
the alternative procedures and techniques used in the translation process, as described above, provide users
with the best possible view of the comparative financial performance and position of the Group, attention is
drawn to the inherent subjectivities and technicalities involved in the translation of ZWL financial statements to
USD financial statements.
Change in accounting policy for Property, Plant and Equipment.

As part of procedures and techniques applied in the translation of ZWL financial statements to USD financial
statements, the Group changed its accounting policy for Property, Plant and Equipment from cost to revaluation
model. The revaluation was performed at the end of the financial year.
The revalued amounts were based on a valuation exercise performed by independent accredited valuers,
Hammer and Tongues for Zimbabwean units and R.M Fumbeshi & Co for Zambian entities and PCDA Consultants
for Malawian entities. Hammer and Tongues has experience in valuing assets of the Group’s nature. A valuation
model in accordance with that recommended by the International Valuation Standards Committee has been
applied.
The revaluation surplus, net of deferred tax, has been included under Non Distributable Reserves, with the
movement for the current year shown under Other Comprehensive Income.
Conversion of Zimbabwe comparative financial statements from ZWL to USD
The Statement of Profit or loss and other comprehensive income
• Transactions were initially split by currency of origin between USD and ZWL.
• ZWL transactions were converted to USD using transactions-based average rate. Average rate is derived from
the pricing rates and rates used for settlement to suppliers.
• Depreciation was based on the USD values which was based on transaction based rates when the property,
plant & equipment was acquired.
The income tax charge was determined as follows:
- The current tax charge was calculated using the section 37AA method as promulgated by ZIMRA and
the ZWL tax was converted using the average rate as per the same method.
- The deferred tax charge was determined from the USD deferred tax movement analysis. The opening
USD deferred tax balances were recalculated from the USD net carrying amounts and tax bases.
The Statement of Financial Position
• Assets were based on transaction based rates when the items were acquired.
• Monetary assets and liabilities were converted at closing rate
• Share capital and share premium were converted based on transaction based rate.

CONTRIBUTIONS

3 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at
30 June 2023. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group
obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the
subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies
except for the revaluation model applied for Property, Plant and Equipment as at 30 June 2023.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an
investee if and only if the Group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee)
• Exposure, or rights, to variable returns from its involvement with the investee, and
• The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement with the other vote holders of the investee;
• Rights arising from other contractual arrangements; and
• The Group’s voting rights and potential voting rights.
The Group re-assesses whether it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control.
Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the
parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having
a negative balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the Group’s accounting policies. All intra-group assets, liabilities, equity, income,
expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it:
• Derecognises the assets (including goodwill) and liabilities of the subsidiary

• Derecognises the carrying amount of any non-controlling interests
• Derecognises the cumulative translation differences, recorded in equity
• Recognises the fair value of the consideration received
• Recognises the fair value of any investment retained
• Recognises any surplus or deficit in profit or loss and;
• Reclassifies the parent’s share of components previously recognised in other comprehensive income to profit
or loss or retained earnings as appropriate
4 Changes in accounting policies and disclosures
4.1 Adoption of new and revised standards that are relevant to the Group
Several amendments and interpretations apply for the first time for annual periods beginning on or after 1
January 2022. These new ammendments and standards did not have a material impact on the Group.
New standards, amendments and interpretations mandatory for year ended 30 June 2023 which are
relevant to the Group
Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

The amendments aim to promote consistency in applying the requirements by helping companies determine
whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date
should be classified as current (due or potentially due to be settled within one year) or non-current.
The amendment is effective for annual reporting periods beginning on or after 1 January 2024 and has not been
early adopted by the Group and not expected to have any material impact on the Group.

4 Changes in accounting policies and disclosures (continued)
4.1 New standards, amendments and interpretations mandatory for year ended 30 June 2023 which are
relevant to the Group (continued)
Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16)
The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds
from selling items produced while bringing that asset to the location and condition necessary for it to be
capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from
selling such items, and the cost of producing those items, in profit or loss.
The amendment did not have any material impact on the Group
Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37)

The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’.
Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be
direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be
the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract).
The amendment did not have any material impact on the Group
Annual Improvements to IFRS Standards 2018–2020

Makes amendments to the following standards:
IFRS 1 – The amendment permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure cumulative
translation differences using the amounts reported by its parent, based on the parent’s date of transition to
IFRSs.
IFRS 9 – The amendment clarifies which fees an entity includes when it applies the ‘10 per cent’ test in paragraph
B3.3.6 of IFRS 9 in assessing whether to derecognise a financial liability. An entity includes only fees paid or
received between the entity (the borrower) and the lender, including fees paid or received by either the entity
or the lender on the other’s behalf.
IFRS 16 – The amendment to Illustrative Example 13 accompanying IFRS 16 removes from the example the
illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential
confusion regarding the treatment of lease incentives that might arise because of how lease incentives are
illustrated in that example.
The ammendments are effective for annual periods beginning on or after 1 January 2022.
The above amendments did not have a material impact on the Group.
4.2 New and revised standards in issue but not yet effective that are relevant to the Group
The Group has not applied these standards and amendments for the first-time, which are effective for annual
periods beginning on or after 1 January 2023. These new amendments and interpretations issued by the IASB,
will not have a material effect on the Group’s financial statements.
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2).
The amendments require that an entity discloses its material accounting policies, instead of its significant
accounting policies. Further amendments explain how an entity can identify a material accounting policy.
Examples of when an accounting policy is likely to be material are added. To support the amendment, the
Board has also developed guidance and examples to explain and demonstrate the application of the ‘four-step
materiality process’ described in IFRS Practice Statement 2.
The Group does not see this standard having an impact on its financial statements when it becomes effective.
Definition of Accounting Estimates (Amendments to IAS 8)

The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates.
Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to
measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial
statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change
in accounting estimate that results from new information or new developments is not the correction of an error.
The Group does not see this standard having an impact on its financial statements when it becomes effective.

CONTRIBUTIONS

4 Changes in accounting policies and disclosures (continued)
4.2 Adoption of new and revised standards (continued)
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS
12)
The amendments clarify that the initial recognition exemption does not apply to transactions in which equal
amounts of deductible and taxable temporary differences arise on initial recognition.
The Group does not see this standard having an impact on its financial statements when it becomes effective
Non-current Liabilities with Covenants (Amendments to IAS 1)

The amendment clarifies how conditions with which an entity must comply within twelve months after the
reporting period affect the classification of a liability.
The Group is still assessing the full impact this standard on its financial statements when it becomes effective.
5 Summary of significant accounting policies
Revenue recognition
The Group recognises revenue according to the following 5 – step model:
Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract and
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a
customer and excludes amounts collected on behalf of third parties. Revenue is presented net of discounts, rebates,
returned products and other customer claims. The Group recognises revenue when it transfers control of a product or
service to a customer.
The Group recognises revenue from the following major sources:
Sale of goods
Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer
on delivery of the goods. The Group considers whether there are other promises in the contract that are separate
performance obligations to which a portion of the transaction price needs to be allocated (e.g. warranties). In
determining the transaction price for the sale of goods, the Group considers the effects of variable consideration, the
existence of significant financing components, non-cash consideration, and consideration payable to the customer (if
any).
Sale of goods includes sale of furniture, household appliances, automotive spares and accessories, electronics and fast-
moving consumer products such as perishable and non-perishable food and beverages.
Sales-related warranties associated with furniture, electronics and automotive spares cannot be purchased separately
and they serve as an assurance that the products sold comply with agreed-upon specifications. Accordingly, the Group
accounts for warranties in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
Rights of return
Certain contracts provide a customer with a right to return the goods within a specified period for reasons such as
damaged or near expiry products delivered. The Group uses the expected value method to estimate the goods that
will not be returned because this method best predicts the amount of variable consideration to which the Group will
be entitled. For goods that are expected to be returned, the Group recognises a contract liability processed against
revenue.
Volume rebates
The Group (particularly in the distribution business) provides retrospective volume rebates to certain customers once
the quantity of products purchased during the period exceeds a threshold specified in the contract. Rebates are offset
against amounts payable by the customer and are accounted by netting-off against the related revenue.

5 Summary of significant accounting policies (continued)
Revenue recognition (continued)
Interest income
Revenue is recognised as interest accrues using the effective interest method (that is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset).
Dividends
Revenue is recognised when the Group’s right to receive the payment is established, which is when the respective
investee company shareholders have approved the dividends.
Employee benefits
Short-term benefits
The cost of all short-term employee benefits, such as salaries, employee entitlements to leave pay, bonuses, medical aid
and other contributions are recognised during the period in which the employee renders the related service. The Group
recognises the expected cost of bonuses only when the Group has a present legal or constructive obligation to make such
payment and a reliable estimate can be made.
Retirement benefit costs

Retirement benefits are provided for Group employees through the Innscor Africa Pension Fund, the National Social Security
Authority, the National Employment of the Motor Industry Pension Fund, Nico Life Insurance Company Limited (Malawi)
and National Pension Scheme Authority (Zambia). The Group’s pension schemes are defined contribution schemes and the
cost of retirement benefits is determined by the level of contributions made in terms of the rules. Contributions to defined
contribution retirement plans are recognised as an expense when employees have rendered service entitling them to the
contributions.
All eligible employees contribute to the National Social Security Authority (Zimbabwe) defined contribution pension
scheme, or the equivalent in foreign subsidiaries. The cost of retirement benefits applicable to the National Social
Security Authority, which commenced operations on 1 October 1994, is determined by the systematic recognition of
legislated contributions.
Share based payments

The Group issues share options to certain employees. The options are measured at fair value at the date of grant. The fair value
determined is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments
that will eventually vest and the corresponding equity is disclosed in a share option reserve which forms part of equity.
The fair value is determined using the binomial option pricing model. The value transferred to the share option reserve
is amortised to equity as the related share options are exercised or forfeited.
Equity Settled Transactions

Equity settled share-based payment transactions with parties other than employees are measured at fair value of the goods or
services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value
of the equity instruments granted, measured at the date the Group obtains the goods or the counterparty renders the service.
Leases
The Group assesses at contract inception whether a contract is or contains a lease. That is, if the contract conveys
substantive rights to control the use of an identified asset for a period of time in exchange for consideration.
The Group as a lessee applies a single recognition and measurement approach for all leases except for short term and low
value leases where the Group has elected to make use of the recognition exemptions provided for in IFRS 16. For other leases
which do not meet the exemption criteria, the Group recognises lease liabilities together with the corresponding right of use
assets which represents the right to use underlying assets.
Right of use assets

The Group recognises the right of use assets at commencement date of the lease. These assets are measured at cost, less
accumulated depreciation, impairment losses and any adjustment for any remeasurement of lease liabilities. The right of use
cost includes amount of lease liabilities recognised present valued, initial direct costs incurred, lease payments made before or
after commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis over
the shorter of the lease term and the estimated useful lives of the underlying asset. These assets are also subject to impairment
which is assessed in a similar way to property, plant and equipment explained under, ‘Impairment of non-financial assets’.

CONTRIBUTIONS

Leases (continued)
Lease liabilities
At lease commencement date, the Group recognises lease liabilities measured at the present value of contractual lease
payments paid over the lease term. The lease payments include in substance fixed payments less any lease incentives
receivable, variable lease payments that depend on an index or a rate and amounts payable under a residual value
guarantee. Variable lease payments that do not depend on an index or rate are recognised as expenses in the period in
which the event or condition that triggers the payment occurs.
The Group makes use of the incremental borrowing rate to discount future lease payments at lease commencement
date as implicit interest rate is not readily determinable. The Group’s borrowing rate which was used is 41% for local
leases and 18% for regional leases. After the commencement date, the lease liability amount is increased to reflect
cumulation of interest and abated for lease payments made. In addition, the carrying amount of lease liability is
remeasured if there is a modification i.e. a change in contractual lease term, a change in lease payments or a change in
the option to purchase the underlying asset.
Foreign currency translation

The Group’s financial statements are presented in United States of America Dollar, which is the Group’s functional and
presentation currency. Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are
initially recorded at the functional currency rate of exchange ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the
reporting date. All differences are taken to profit or loss except for differences on foreign currency borrowings that
provide a hedge against a net investment in a foreign entity.
These are recognised in other comprehensive income until the disposal of the net investment, at which time they are
recognised in profit or loss. The tax charges and credits attributable to exchange differences on those borrowings are
also recognised in other comprehensive income. Non-monetary items that are measured in terms of the historical cost
basis in a foreign currency are translated using the exchange rates ruling at the dates of the initial transactions. Non-
monetary items measured at fair value in a foreign currency are translated using the exchange rates as at the dates
when the fair value was determined. The gain or loss arising on retranslation of non-monetary items is treated in line
with the recognition of gain or loss on change in fair value of the item.
Foreign operations
Assets and liabilities of subsidiary companies denominated in foreign currencies are translated into Zimbabwe Dollars
at rates of exchange ruling at reporting date and their statements of profit or loss and other comprehensive income
results are translated at the average rate of exchange for the period. The average rate of exchange is calculated by
dividing the summation of the opening rate to the closing rate by two. Where there are drastic movements between the
opening and closing rates of exchange, the statement of profit or loss and comprehensive income results is translated
on a month on-month basis using the average rate of exchange for each month. Differences on exchange arising
from translation of assets and liabilities at the rate of exchange ruling at reporting date and translation of statement of
comprehensive income items at average rates, are recognised in other comprehensive income. Upon divestment from
a foreign operation, translation differences related to that entity are taken to profit or loss.
Business combinations and Goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate
of the consideration transferred, measured at acquisition-date fair value and the amount of any non-controlling interest in the
acquiree. For each business combination, the Group measures the non-controlling interest in the acquiree either at fair value
or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree. If the business
combination is achieved in stages, the acquisition date fair value of the Group’s previously held equity interest in the
acquiree is re-measured to fair value as at the acquisition date through profit or loss.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value, with changes in fair value recognised in profit or loss.

Business combinations and Goodwill (continued)
Goodwill is initially measured at cost, being the excess of the consideration transferred over the Group’s net identifiable assets
acquired and liabilities assumed, and the amount recognised for non-controlling interest. If this consideration is lower than
the fair value of the net assets of the subsidiary acquired, the difference is recognised in profit or loss as bargain purchase gain.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment
testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash
generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the
acquiree are assigned to those units.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill
associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or
loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the
operation disposed of and the portion of the cash-generating unit retained.
Common control business combinations
A business combination involving entities under common control is a business combination in which all the combining
entities or businesses are ultimately controlled by the same party or parties both before and after the business combination,
and that control is not transitory. Such acquisition does not meet the definition of a business combination in accordance with
IFRS 3 ‘Business Combinations’. The Group’s policy is to treat such an acquisition as a group restructuring, using the common
control method, as follows:
• The assets, liabilities and reserves of the acquired entity/entities are reflected at their carrying amounts. No adjustments
are made to reflect fair values, or recognise any new assets or liabilities, that would otherwise be required by IFRS 3.
• No new goodwill is recognised as a result of the restructuring. The only goodwill recognised is the existing goodwill
in the business as reflected in the consolidated financial statements of the selling entity; and
• The statement of profit or loss and comprehensive income reflects the results of the Group from the effective date
of such transaction.
Property, plant and equipment
Land, plant and equipment, furniture and fittings are are recognised at fair value based on periodic, but at least five years,
valuations by external independent valuers, less subsequent depreciation for buildings. A revaluation surplus is credited to
other reserves in shareholders’ equity.
When significant parts of plant and equipment are requiring replacement in intervals, the Group recognises such parts as
individual assets with specific useful lives and depreciation, respectively. Likewise, when a major inspection is performed, its
cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied.
All other repair and maintenance costs are recognised in profit or loss as incurred. The present value of the expected cost for
the decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a
provision are met.
The various rates of depreciation are listed below:
• Freehold property - 2%
• Leasehold improvements - the lesser of period of lease or 10 years
• Fittings and equipment - 10% - 25%
• Vehicles - 12.5% - 25%
The carrying values of plant and equipment are reviewed for impairment annually, or earlier where indications are that the
carrying value may be irrecoverable. When the carrying amount exceeds the estimated recoverable amount, assets are
written down to the recoverable amount.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying value of the asset) is included in profit or loss in the year the asset is derecognised.
The residual values, useful lives and depreciation methods of property, plant and equipment are reviewed by the Group, and
prospectively adjusted if necessary, on an annual basis. Depreciation is not charged when the carrying amount of an item of
property, plant and equipment becomes equal or less than the residual value.

CONTRIBUTIONS

Intangible assets
(i) Goodwill
Goodwill is measured as described in the note above on business combinations
(ii) Software
Costs associated with maintaining software programmes are recognised as an expense as incurred.
Development costs that are directly attributable to the design and testing of identifiable and unique
software products controlled by the Group are recognised as intangible assets where the following
criteria are met:
• it is technically feasible to complete the software so that it will be available for use
• management intends to complete the software and use or sell it
• there is an ability to use or sell the software
• it can be demonstrated how the software will generate probable future economic benefits
• adequate technical, financial and other resources to complete the development and to use or sell the
software are available, and
• the expenditure attributable to the software during its development can be reliably measured.
Directly attributable costs that are capitalised as part of the software include employee costs and an appropriate
portion of relevant overheads.
Capitalised development costs are recorded as intangible assets and amortised from the point at which the
asset is ready for use.
(iii) Amortisation methods and periods

The group amortises intangible assets with a limited useful life, using the straight-line method over the following
periods:
• IT development and software 3–5 years
Impairment of non-financial assets
The Group assesses at each reporting date, or earlier where indications that impairment exists, whether an
asset may be impaired. This entails estimating the asset’s recoverable amount, which is the higher of the asset’s
fair value less costs of disposal and value in use. Where the asset’s carrying amount exceeds its recoverable
amount, the asset is considered impaired and its carrying amount is written down to its recoverable amount. In
assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of time value of money and the risks specific to the asset.
Impairment losses are recognised in profit or loss in those expense categories consistent with the function of
the impaired asset.
For non-financial assets including goodwill, an assessment is made at each reporting date as to whether
previously recognised impairment losses may no longer exist or have decreased. If such indication exists, the
recoverable amount is estimated in order to reverse the previously recognised impairment losses. A previously
recognised impairment loss is reversed only to the extent that there has been a change in the estimates used
in determining the asset’s recoverable amount since the last impairment loss was recognised. If that is the case
the asset’s carrying amount is increased to its recoverable amount. However, the increased carrying value of the
asset is limited to the carrying value determinable, net of depreciation, had the impairment not occurred. Such
reversal is taken to profit or loss.
After the reversal, the depreciation charge is adjusted in future periods to allocate the revised carrying amount,
less any residual value, on a systematic basis over the remaining useful life.
Investments in associates and joint ventures

The Group’s investments in associates and joint ventures are accounted for using the equity method of
accounting. Associates are entities in which the Group exercises significant influence and which are neither
subsidiaries nor jointly controlled operations. Joint ventures are joint arrangements whereby the parties that
have joint control have rights to the net assets of the joint arrangement. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only when decisions about the relevant activities require
unanimous consent of the parties sharing control.

Investments in associates and joint ventures (continued)
The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial
statements using the equity method of accounting, except when the investment or a portion thereof, is classified as
held for sale, in which case it is accounted in accordance with IFRS 5, ‘Non-current Assets held for Sale and Discontinued
Operations’.
Under the equity method, an investment in an associate or a joint venture are initially carried in the statement of
financial position at cost. Subsequently, the investments in associates or joint ventures are carried at cost plus post-
acquisition changes in the Group’s share of the reserves of the associate or joint venture, less dividends received from
the associate or joint venture. Goodwill relating to an associate or joint venture is included in the carrying amount of
the investment.
The statement of profit or loss and other comprehensive income reflects the share of the results of operations of the
associates or joint ventures attributable to the Group.
Where there have been changes recognised directly in the equity of the associate or joint venture, the Group recognises
its share of any changes and discloses this, when applicable, in the statement of changes in equity. Unrealised gains or
losses resulting from transactions between the Group and associates or joint ventures are eliminated to the extent of
the interest in the associate.
The financial statements of an associate or joint venture are prepared for the same reporting period as the parent
company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group. After
application of the equity method, the Group determines whether it is necessary to recognise an additional impairment
loss on the Group’s investment in its associate or investment in joint venture. The Group determines at each reporting
date whether there is any objective evidence that the investment in the associate or joint venture is impaired. If this
is the case the Group calculates the amount of impairment as the difference between the recoverable amount of the
associate or joint venture and it’s carrying value and recognises the amount in profit or loss.
Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its
fair value. Any difference between the carrying amount of the associate upon loss of significant influence, and the fair
value of the retained investment and proceeds from disposal is recognised in profit or loss.
The Group continues to use the equity method when an investment in associate becomes an investment in joint
venture or when an investment in joint venture becomes an investment in associate. There is no remeasurement to fair
value upon such changes in ownership interests.
When the Group reduces its ownership interest in an associate or joint venture, but the Group continues to use the
equity method, the Group reclassifies to profit or loss the portion of the gain or loss that had previously been recognised
on other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified
to profit or loss on disposal of the related assets and liabilities.
Investments in subsidiaries (held in the separate books of the company)

Subsidiaries are companies which the holding Company controls. Control is achieved where the Company has power
over more than one half of the voting rights or the power to govern the financial and operating policies of an investee
enterprise so as to obtain benefits from its activities.
Investments in subsidiaries are initially carried in the statement of financial position at cost. Where an indication of
impairment exists, the recoverable amount of investment is assessed. Where the carrying amount of the investment
is greater than the estimated recoverable amount, it is written down immediately to its recoverable amount and the
difference is charged to profit or loss. On disposal of an investment, the difference between the net disposal proceeds
and the carrying amount is credited or charged to profit or loss.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s statement of financial position when the Group
becomes a party to the contractual provisions of the instrument.

CONTRIBUTIONS

Financial instruments (continued)
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at
fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or
financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Financial assets
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular
way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace.
All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.
Classification of financial assets

Debt instruments that meet the following conditions are measured subsequently at amortised cost:
• the financial asset is held within a business model whose objective is to hold financial assets to collect
contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are measured subsequently at fair value through other
comprehensive income (FVTOCI):
• the financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling the financial assets; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL). Despite the
foregoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset:
• the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other
comprehensive income if certain criteria are met (see (iii) below); and
• the Group may irrevocably designate a debt instrument that meets the amortised cost or FVTOCI criteria as
measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.
(i) Amortised cost and effective interest rate method
The effective interest rate method is a method of calculating the amortised cost of a debt instrument and of
allocating interest income over the relevant period.
For financial assets other than purchased or originated credit-impaired financial assets (i.e. assets that are credit-
impaired on initial recognition), the effective interest rate is the rate that exactly discounts estimated future cash
receipts (including all fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) excluding expected credit losses, through the expected
life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt
instrument on initial recognition.
For purchased or originated credit-impaired financial assets, a credit-adjusted effective interest rate is calculated
by discounting the estimated future cash flows, including expected credit losses, to the amortised cost of the
debt instrument on initial recognition.

Financial assets (continued)
Classification of financial assets (continued)
(i) Amortised cost and effective interest rate method (continued)
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition
minus the principal repayments, plus the cumulative amortisation using the effective interest rate method of
any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The
gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss
allowance. Interest income is recognised using the effective interest method for debt instruments measured
subsequently at amortised cost and at FVTOCI.
For financial assets other than purchased or originated credit-impaired financial assets, interest income is
calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for
financial assets that have subsequently become credit-impaired (see below). For financial assets that have
subsequently become credit-impaired, interest income is recognised by applying the effective interest rate to
the amortised cost of the financial asset.
If, in subsequent reporting periods, the credit risk on the credit-impaired financial instrument improves so that
the financial asset is no longer credit-impaired, interest income is recognised by applying the effective interest
rate to the gross carrying amount of the financial asset.
For purchased or originated credit-impaired financial assets, the Group recognises interest income by applying
the credit-adjusted effective interest rate to the amortised cost of the financial asset from initial recognition.
The calculation does not revert to the gross basis even if the credit risk of the financial asset subsequently
improves so that the financial asset is no longer credit-impaired. Interest income is recognised in profit or loss.
The Group classifies trade receivables and other receivables as financial assets at amortised costs, refer to note
22 for detailed disclosure.
(ii) Equity instruments designated as at FVTOCI
On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis)
to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the
equity investment is held for trading or if it is contingent consideration recognised by an acquirer in a business
combination.
A financial asset is held for trading if:
• it has been acquired principally for the purpose of selling it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Group manages
together and has evidence of a recent actual pattern of short-term profit-taking; or
• it is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective
hedging instrument.
Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs.
Subsequently, they are measured at fair value with gains or losses arising from changes in fair value recognised
in other comprehensive income and accumulated in the investments revaluation reserve. The cumulative gain
or loss is not reclassified to profit or loss on disposal of the equity investments, instead, it is transferred to
retained earnings.
Dividends on these investments in equity instruments are recognised in profit or loss in accordance with IFRS 9
unless the dividends clearly represent a recovery of part of the cost of the investment.
Dividends are included in the ‘financial income’ line item disclosed under note 11 in profit or loss.

CONTRIBUTIONS

Classification of financial assets (continued)
(iii) Financial assets at FVTPL
Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI are measured at
FVTPL. Specifically:
• Investments in equity instruments are classified as at FVTPL, unless the Group designates an equity
investment that is neither held for trading nor a contingent consideration arising from a business
combination as at FVTOCI on initial recognition.
• Debt instruments that do not meet the amortised cost criteria or the FVTOCI criteria are classified as at FVTPL. In
addition, debt instruments that meet either the amortised cost criteria or the FVTOCI criteria may be designated
as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or
recognition inconsistency (so called ‘accounting mismatch’) that would arise from measuring assets or liabilities
or recognising the gains and losses on them on different bases. The Group has designated the derivative
financial asset (note 20) as a debt instrument at FVTPL.
• Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair
value gains or losses recognised in profit or loss to the extent they are not part of a designated hedging
relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on
the financial asset and is included in the ‘financial income or loss’ line item disclosed under note 11 and “fair
value adjustments on listed equities” line disclosed under note 20.
Foreign exchange gains or losses
The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end of each reporting period. Specifically.
• for financial assets measured at amortised cost that are not part of a designated hedging relationship, exchange
differences are recognised in profit or loss in the ‘financial income or loss’ line item disclosed under note 11; and
• for financial assets measured at FVTPL that are not part of a designated hedging relationship, exchange differences
are recognised in profit or loss in the ‘financial income or loss’ line item disclosed under note 11.
Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on investments in debt instruments that are measured
at amortised cost or at FVTOCI, lease receivables, trade receivables and contract assets, as well as on financial guarantee
contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since
initial recognition of the respective financial instrument.
The Group always recognises Expected Credit Losses (“ECL”) for trade receivables, contract assets and lease receivables. The
expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit
loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of
both the current as well as the forecast direction of conditions at the reporting date, including time value of money where
appropriate.
For all other financial instruments, the Group recognises ECL when there has been a significant increase in credit risk since
initial recognition. In contrast, 12 months ECL represents the portion of lifetime ECL that is expected to result from default
events on a financial instrument that are possible within 12 months after the reporting date.
ECL represents the expected credit losses that will result from all possible default events over the expected life of a
financial instrument.

Impairment of financial assets
(i) Definition of default
The Group considers the following as constituting an event of default for internal credit risk management
purposes as historical experience indicates that financial assets that meet either of the following criteria are
generally not recoverable:
• when there is a breach of financial covenants by the debtor; or

• information developed internally or obtained from external sources indicates that the debtor is unlikely to
pay its creditors, including the Group, in full (without taking into account any collateral held by the Group).
Irrespective of the above analysis, the Group considers that default has occurred when a financial asset is more
than 120 days past due unless the Group has reasonable and supportable information to demonstrate that a
more default criterion is more appropriate.
(ii) Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated
future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes
observable data about the following events:
a) significant financial difficulty of the issuer or the borrower.

b) a breach of contract, such as a default or past due event (see (i) above).
c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial
difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider.
d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
e) the disappearance of an active market for that financial asset because of financial difficulties.
(iii) Write-off policy
The Group writes off a financial asset when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery, e.g., when the debtor has been placed under liquidation
or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over
two years past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement
activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Any
recoveries made are recognised in profit or loss.
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control
the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it
may have to pay.
If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount
and the sum of the consideration received and receivable is recognised in profit or loss.

CONTRIBUTIONS

Financial liabilities
Classification as debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of
the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Group are recognised when the proceeds are received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
All financial liabilities are measured subsequently at amortised cost using the effective interest method or at FVTPL.
However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when
the continuing involvement approach applies, and financial guarantee contracts issued by the Group, are measured in
accordance with the specific accounting policies set out below.
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the financial liability is (i) contingent consideration of an acquirer in a
business combination, (ii) held for trading or (iii) it is designated as at FVTPL.
A financial liability is classified as held for trading if:
• it has been acquired principally for the purpose of repurchasing it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together
and has a recent actual pattern of short-term profit-taking; or
• it is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging
instrument.
A financial liability other than a financial liability held for trading or contingent consideration of an acquirer in a business
combination may be designated as at FVTPL upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would
otherwise arise; or the financial liability forms part of a group of financial assets or financial liabilities or both, which
is managed and its performance is evaluated on a fair value basis, in accordance with the Group’s documented risk
management or investment strategy, and information about the grouping is provided internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined
contract to be designated as at FVTPL.
Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognised
in profit or loss to the extent that they are not part of a designated hedging relationship. The net gain or loss recognised
in profit or loss incorporates any interest paid on the financial liability and is included in the ‘interest paid’ line item (note
12) in profit or loss.
However, for financial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial
liability that is attributable to changes in the credit risk of that liability is recognised in other comprehensive income,
unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create
or enlarge an accounting mismatch in profit or loss.
The remaining amount of change in the fair value of liability is recognised in profit or loss. Changes in fair value attributable to
a financial liability’s credit risk that are recognised in other comprehensive income are not subsequently reclassified to profit
or loss; instead, they are transferred to retained earnings upon derecognition of the financial liability.
Gains or losses on financial guarantee contracts issued by the Group that are designated by the Group as at FVTPL are
recognised in profit or loss.

Financial liabilities (continued)
Financial liabilities at FVTPL (continued)
Fair value is determined in the manner described in note 20.
Financial liabilities measured subsequently at amortised cost
Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held-for-trading, or (iii)
designated as at FVTPL, are measured subsequently at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash payments (including all fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where
appropriate) a shorter period, to the amortised cost of a financial liability.
Financial guarantee contract liabilities
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt
instrument.
Financial guarantee contract liabilities are measured initially at their fair values and, if not designated as at FVTPL and do
not arise from a transfer of an asset, are measured subsequently at the higher of:
• the amount of the loss allowance determined in accordance with IFRS 9 (see financial assets above); and
• the amount recognised initially less, where appropriate, cumulative amortisation recognised in accordance with
the revenue recognition policies set out above.
Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of
each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the
instruments. These foreign exchange gains and losses are recognised in the ‘financial income’ line item in profit or loss
(note 11) for financial liabilities that are not part of a designated hedging relationship.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and
translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the
foreign exchange component forms part of the fair value gains or losses and is recognised in profit or loss for financial
liabilities that are not part of a designated hedging relationship.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or
have expired. The difference between the carrying amount of the financial liability derecognised and the consideration
paid and payable is recognised in profit or loss.
Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits
held on call with financial institutions, other short-term and highly liquid investments with original maturities of three
months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.
Inventories
Inventories are stated at the lower of cost and estimated net realisable value. In general, cost is established on a
weighted average basis. Cost of inventories comprise all costs of purchase and other costs incurred in bringing the
inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

CONTRIBUTIONS

Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year
which are unpaid. The amounts are unsecured and are usually paid within 90 days of recognition. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.
They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest
method. For detailed disclosure of financial liabilities at amortised costs refer to note 30.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in profit or loss over the period of the borrowings using the effective interest rate method. Fees paid on the
establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some
or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is
no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment
for financial services and amortised over the period of the facility to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to
another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognised
in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period.
Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their
intended use or sale. Investment income earned on the temporary investment of specific borrowings, pending their
expenditure on qualifying assets, is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs
are expensed in the period in which they are incurred.
Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and
when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
and a reliable estimate of the amount of the obligation can be made. Where the Group expects some or all of the
provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate
asset but only when the reimbursement is virtually certain.
The expense relating to any provision is presented in profit or loss net of any certain reimbursements. If the effect of the
time value of money is material, provisions are discounted using a pre-tax discount rate that reflects, where appropriate,
the risks specific to those provisions. Where discounting is used, the increase in the provision due to passage of time is
recognised in profit or loss as a borrowing cost.
Provision for warranty claims

In respect of provision for warranty claims, the Group warrants its television products and certain component parts of
electronic appliances as well as some automotive spares. The provision is made on the basis of previous experience of
the incidence of such claims.
Leave pay liability

Leave pay for employees is provided on the basis of leave days accumulated at an expected rate of payment. The
timings of the cash out-flows are by their nature uncertain.
Contingent liabilities
Contingent liabilities, which include certain financial guarantees, litigation and other letters of credit pledged as collateral
security, are possible obligations that arise from past events whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the Group’s control. Contingent liabilities
are not recognised in the financial statements but are disclosed in the notes to the financial statements.

Taxes
Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from, or paid to, the tax authorities. The tax rates and tax laws used to compute the amount are those that are
enacted, or substantively enacted, at the reporting date in countries where the Group operates and generates taxable
income.
Current income tax relating to items recognised directly in equity or other comprehensive income is recognised in
equity or in other comprehensive income and not in profit or loss.
Deferred income tax

Deferred income tax is provided using the liability method on temporary differences at reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences, except:
• where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; and
• in respect of taxable temporary differences associated with investments in subsidiaries and associates where
the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits
and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credit and unused tax losses can be utilised except:
• where the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; and
• in respect of deductible temporary differences associated with investments in subsidiaries and associates, deferred
income tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilised. Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.
Deferred income tax relating to items recognised directly in equity or other comprehensive income is recognised in
equity or other comprehensive income and not in profit or loss. Deferred income tax assets and deferred income tax
liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax
liabilities and the deferred income taxes relate to the same taxable entity and the same tax authority.
Value Added Tax

Revenues, expenses and assets are recognised net of the amount of Value Added Tax except where the Value Added Tax
incurred on a purchase of assets or services is not recoverable from the tax authority, in which case the Value Added Tax
is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable.
The net amount of Value Added Tax recoverable from, or payable to, the tax authority is included as part of receivables
or payables in the statement of financial position.
Operating Segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker. The chief operating decision-maker is the Group’s Executive Directors.

CONTRIBUTIONS

Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting
period.
Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand currency
units unless otherwise stated.
Key estimates, uncertainties and judgements
The following are the key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date that have a significant risk of causing material adjustments to the carrying amounts of assets and
liabilities within the next financial year:
(i) Useful lives and residual values of property, plant and equipment
The Group assesses useful lives and residual values of property, plant and equipment each year taking into
consideration past experience, technology changes and the local operating environment. The useful lives are set
out on property, plant and equipment policy above and no changes to those useful lives have been considered
necessary during the year. Residual values will be reassessed each year and adjustments for depreciation will be
done in future periods if there is indication of impairment in value.
(ii) Deferred tax assets

Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit
will be available against which the losses can be utilised. Significant management judgement is required to
determine the value of deferred tax assets that can be recognised, based upon the likely timing and the level of
future taxable profits together with future tax planning strategies. Refer to note 28 for more information on the
evidence supporting recognition of deferred tax assets.
(iii) Provision for obsolete stock

The provision for obsolescence is based on assessment of quality of stock through sampling. Inventory that no
longer meets minimum quality standards as a result of damage or exceeding standard shelf life is classified as
obsolete. Inventory relating to discontinued products is also classified as obsolete. Refer to note 23 for more
information on the carrying amount of inventory and the provision for obsolete stock.
(iv) Allowance for Expected Credit Losses

The expected credit losses of financial assets are estimated in a way that reflects the following:
• An unbiased and probability-weighted amount determined by evaluating a range of possible outcomes
• The time value of money
• Reasonable and supportable information about past events, current conditions and forecasts of economic
conditions that is available without undue cost or effort at the reporting date
(v) Valuation of Zimbabwean Dollar denominated assets and liabilities
The Group applied significant judgement in estimating the rate of exchange between the Zimbabwe
Dollar (ZWL) and United States Dollar (USD) from the time that the company established that there is lack of
exchangeability which is other than temporary, between the ZWL and the USD.
In determining the closing rate applied at year end, the Group considered the following inputs:
• The official rate of inflation

• The exchange rate at which the company was accessing foreign currency on the foreign exchange auction
• The backlog of allocated bids on the foreign exchange auction and its impact on business operations
• The amount of Free funds generated from sales to customers utilised in business operations.

6 Earnings per share
6.1 Basic earnings basis

The calculation is based on the profit attributable to equity holders of the parent and weighted average number of
ordinary shares in issue for the year.
The indigenisation share options with an indegenous company had no dilutive effect at the end of the financial year.
6.2 Diluted earnings basis

The calculation is based on the profit attributable to equity holders of the parent and the weighted average number of
ordinary shares in issue after adjusting for the conversion of share options. Share options are considered for dilution if
the average market price of ordinary shares during the year exceeds the exercise price of such options.
The indigenisation share options with an indegenous company had no dilutive effect at the end of the financial year.
6.3 Headline earnings basis

Headline earnings comprise of basic earnings attributable to equity holders of the parent adjusted for profits, losses and
items of a capital nature that do not form part of the ordinary activities of the Group, net of their related tax effects and
share of non-controlling interests as applicable.
The following reflects the income and share data used in the basic, headline and diluted earnings per share computations:
2023 2022
USD USD
6.4 Number of shares in issue
Number of ordinary shares in issue per basic and headline earnings per share 556 000 308 552 150 308
Effect of share options - 3 850 000
Weighted average number of ordinary shares in issue adjusted for the
effect of dilution 556 000 308 556 000 308
6.5 Reconciliation of basic earnings to headline earnings:

Adjustment for capital items (gross of tax):
Profit on disposal of equipment and motor vehicles ( 94 928) ( 70 359)
Tax effect on adjustments 23 468 18 521
Non-controlling interests’ share of adjustments 35 723 25 914
Headline earnings attributable to equity holders of the parent 3 724 190 5 593 211
Basic earnings per share (cents) 0.68 1.02
Headline earnings per share (cents) 0.67 1.01
Diluted basic earnings per share (cents) 0.68 1.01
Diluted headline earnings per share (cents) 0.67 1.01
7 Dividends
The Board declared an interim dividend of USD 0.0018 (0.18 US cents) per share in respect of all ordinary shares of the
Company. The Board also declared an interim dividend of USD 50 000 to the Axia Employee Trust (Private) Limited.
2023 2022
USD USD
7.1 Dividends declared on ordinary shares
Final dividend declared relating to previous financial year 873 715 -
Interim dividend declared 1 000 580 1 528 613
Axia employee share owership trust (Class “A” ordinary share dividends) 92 856 75 417
Final dividend declared relating to previous financial year 42 856 -
Interim dividend declared 50 000 75 417
1 967 152 1 604 030
The Board has declared a final dividend of USD 0.0010 (0.10 US cents) per share in respect of all ordinary shares of the
Company. This brings the total dividend paid for the year to USD 0.0028 (0.28 US cents). The Board has also declared a final
dividend of USD 25 000 to the Axia Corporation Employee Trust (Private) Limited.

CONTRIBUTIONS

2023 2022
USD USD
7.2 Dividends declared by subsidiaries to non-controlling interests
Declared and paid

TV Sales & Home (Private) Limited 827 567 1 139 905
Equip (Private) Limited - 8 319
Innscor Distribution Africa Limited - 66 692
Distribution Group Africa (Private) Limited 292 729 753 159
Shipserve (Private) Limited - 10 750
Geribran Services (Private) Limited - 259 247
Total dividends declared and paid by subsidiaries to non-controlling
interests 1 120 296 2 238 072
Declared but not paid at year end

Geribran Services (Private) Limited 35 350 261 626
Distribution Group Africa (Private) Limited 657 695 -
Innscor Distribution Africa Limited 120 000 -
TV Sales & Home (Private) Limited - 163 657
813 045 425 283
Total dividends for the year declared by subsidiaries to non-controlling

interests 1 933 341 2 663 355
2023 2022
Notes USD USD
8 Revenue
Sale of goods 200 954 131 201 130 966
Interest on instalment credit sales 2 795 834 3 050 162
203 749 965 204 181 128
Sale of goods includes sale of furniture, household appliances and electronics and fast-moving consumer products
such as perishable and non-perishable food and beverages.
The Group has disaggregated revenue by operating segments as this is the information regularly reviewed by the
Board, which is the Chief Operating Decision Maker (CODM) in order to evaluate the financial performance of the entity.
Refer to note 33 for more information.
2023 2022
USD USD
9 Other income
Sundry income and sales 817 935 186 632
Scrap and repairs 352 606 645 602
Commissions 342 366 288 836
Rebates 1 248 557 1 228 692
Merchandising 1 049 639 1 629 288
3 811 103 3 979 050
Included in sundry income is the sale of non-core business items such as sale of raw materials and scrap.

2023 2022
USD USD
10 Operating expenses
Staff costs 19 212 503 15 730 769
Audit fees and expenses 369 823 246 733
Cleaning 166 608 187 410
Network charges 212 142 221 831
Sales Commissions 906 412 1 051 894
Debtors Clearing 362 594 253 070
Rebates and warranty fees 104 298 175 418
Distribution costs 3 251 262 2 967 626
Repairs and maintenance 1 437 151 1 247 532
Electricity, water and rates 891 324 564 508
Delivery vehicle costs 279 570 227 708
Legal fees 77 107 75 890
Listing fees 111 547 104 706
Bank charges (including IMTT) 2 984 796 2 565 773
Security 618 351 550 192
Telephone and postage 173 651 130 982
Fuel 1 264 568 833 915
Printing & Stationery 396 156 282 310
Advertising and marketing 651 607 604 841
Directors fees 193 180 166 250
Operating lease charges 679 509 1 197 067
Consultancy fees 660 254 602 084
Insurance and licenses 874 139 687 178
Travellling and accomodation 449 237 487 840
Inventories written off and obsolescence charges 1 913 970 1 580 019
Bad debts written off and allowancefor credit losses 312 677 108 500
Other* 1 062 229 1 972 974
39 662 765 34 825 020
* Other operating expenses comprise of donations, computer expenses and financial reporting expenses etc.
Operating expenses are disclosed per income statement :

-Operating expenses
-net impairment loss on trade and other receivables 39 350 088 34 716 520
312 677 108 500
Total operating expenses 39 662 765 34 825 020
10.2 Included in operating expenses are share based payment expenses and key management’s emoluments
comprising of:
2023 2022
USD USD
10.2.1 Short term employee benefits
Equity-settled share-based payments expense 24 - 33 492
Executive directors and key management remuneration* 4 403 661 4 032 270
4 403 661 4 065 762
* Key management are the Company’s executives and senior management of the Group’s subsidiary companies.
10.2.2 Non-executive directors fees

Independent, non-executive directors - fees 174 480 147 785
Non-independent, non-executive directors - fees 18 700 18 465
193 180 166 250
11 Financial loss
Net exchange losses ( 927 026) ( 747 652)
Profit on disposal of equipment 94 911 70 359
Dividends received from listed equity investments - 14 725
( 832 115) ( 662 568)
12 Interest expense
Bank overdrafts and interest-bearing borrowings 2 416 229 2 021 790
Lease liabilities 845 119 613 896
3 261 348 2 635 686

CONTRIBUTIONS

2023 2022
Notes USD USD
13 Tax expense
13.1 Income tax expense
Current income tax charge 3 897 910 6 351 481

Witholding tax 41 755 33 893
Deferred tax release 28.1 1 063 598 70 354
5 003 263 6 455 728
2023 2022
% %
13.2 Tax rate reconciliation
Statutory rate of taxation, inclusive of AIDS levy 24.72 24.72
Adjusted for:
Tax effect of equity accounted earnings (0.39) (0.91)
Regional rates 2.41 2.75
IMTT 6.60 3.84
Other non-taxable/non-deductible items* 11.40 8.70
Effective tax rate 44.73 39.10
*Other non-taxable and non-deductible items include, donations, fines and non-deductible legal expenses and fringe
benefits.
2023 2022
Notes USD USD
14 Cash flow information
14.1 Cash generated from operations

Profit before interest and tax 14 229 176 18 433 981
Depreciation of property, plant and equipment and right of use assets 5 571 963 5 266 617
Equity-settled share-based payment expense - 33 492
Net unrealised translation losses on foreign entities ( 875 564) ( 939 926)
Net movements on derivative financial asset 20 211 382 323 924
Inventories written-off and obsolescence charges 1 913 970 1 580 019
Allowance for credit losses 312 677 108 500
Increase in provision for leave pay 593 890 1 330 746
Profit on disposal of fixed assets ( 94 911) ( 70 359)
Decrease/(increase) in inventories 590 642 ( 7 936 166)
(Increase)/decrease in trade and other receivables ( 8 715 983) 3 695 402
Increase in trade and other payables 3 230 042 3 364 278
Decrease in provisions and other liabilities ( 1 034 561) ( 850 904)
15 932 723 24 339 604
14.3 Investing activities

Expenditure on property, plant and equipment ( 6 287 912) ( 11 888 085)
To maintain operations ( 773 338) ( 3 244 328)
To expand operations (5 514 574) ( 8 643 757)
Proceeds on disposal of equipment 94 911 70 359
Purchase of investment in financial asset ( 343 643) -
Net cash outflow on acquisition of a joint venture (Natlog) 18.23 - ( 1 068 000)
Net cash outflow on conversion of associate to Subsidiary (Maton Trading) 15.1 - ( 1 449 690)
Net cashoutflow on investment in Subsidiary ( 80 000) -
( 6 616 644) ( 14 335 416)

14.4 Cashflow arising from interest- bearing borrowings (disclosed in financing activities)
Cashflows Non cash changes

Proceeds Repayments Foreign Other non-
2022 from of exchange cash 2023
USD borrowings borrowings Acquistions movements movements USD
Short term financing 9 689 942 13 756 927 (11 235 405) - 558 797 109 080 12 879 341
Total liabilities from

financing activities 9 689 942 13 756 927 (11 235 405) - 558 797 109 080 12 879 341
2021 2022
USD USD
Short term financing 8 002 793 6 547 005 ( 4 209 202) 13 016 ( 663 670) - 9 689 942
Total liabilities from

financing activities 8 002 793 6 547 005 ( 4 209 202) 13 016 ( 663 670) - 9 689 942
15 Net cashflows arising from acquisitions
15.1 Net cash flow arising on conversion of an Associate to a subsidiary (30 June 2022)
On 1 July 2021, Axia Corporation Limited through its subsidiary, TV Sales & Home increased its shareholding in Maton
Trading (Private) Limited (“Maton”) from 49% to 60% for a purchase consideration of USD 2 134 296.
Maton was previously owned 49% by TV Sales & Home and the other 51% by Tafetta Investments (Private) Limited.
This transaction resulted in the Group controlling the results of Maton Trading effective 1 July 2021.
The net assets acquired in the transaction above are as follows:
Net cash flow on convesion of Associate to subsidiary

2022
USD
Assets
Property, plant and equipment ( 2 530 862)
Inventories ( 1 101 672)
Trade and other receivables ( 2 918 147)
Cash and cash equivalents ( 684 606)
Trade and other payables 608 002
Provisions 53 280
Interest - bearing borrowings 13 016
Deferred tax liabilities 1 391
Current tax liability 505 960
Net assets on conversion of Associate to subsidiary ( 6 053 637)
Non controlling interests share therein 2 421 455
Fair value of net assets recognised ( 3 632 182)
Fair value of previously held interest retained 1 497 886
Consideration paid ( 2 134 296)
Add: cash and cash equivalents on conversion of Associate to subsidiary 684 606
Net cash inflow on conversion of Associate to subsidiary ( 1 449 690)

CONTRIBUTIONS

16.1 Property, plant and equipment
Freehold Leasehold Fittings & Motor Total

property improvements Equipment vehicles
USD USD USD USD USD
Cost
At 30 June 2021 1 511 347 447 688 4 796 751 3 973 065 10 728 851
Additions 5 036 101 93 586 3 483 737 3 274 661 11 888 085
Disposals - ( 122) ( 338) ( 388 885) ( 389 345)
Conversion of joint venture to subsidiary 1 992 262 - 458 200 181 413 2 631 875
Exchange difference on translation of foreign entity 155 403 247 790 92 345 188 319 683 857
At 30 June 2022 8 695 113 788 942 8 830 696 7 228 573 25 543 323
Additions 4 573 364 13 895 1 046 011 654 642 6 287 912
Revaluation 3 645 958 - ( 22 802) 1 586 498 5 209 654
Transfer to inventory - - - ( 3 296) ( 3 296)
Disposals - - - ( 36 671) ( 36 671)
At 30 June 2023 16 923 780 808 446 9 869 856 9 554 825 37 156 908
Acumulated depreciation and impairment

losses
At 30 June 2021 84 042 30 292 599 392 681 484 1 395 210
Disposals - ( 122) ( 338) ( 388 885) ( 389 345)
Charge for the year 57 651 75 315 1 815 370 1 970 977 3 919 313
Conversion of joint venture to subsidiary 76 464 - 17 586 6 963 101 013
At 30 June 2022 293 232 184 963 2 541 859 2 551 404 5 571 459
Disposals - - - ( 36 671) ( 36 671)
Charge for the year 52 149 123 706 930 115 1 645 878 2 751 848
Exchange difference on translation of foreign entity ( 3 125) ( 320) ( 16 342) ( 59 166) ( 78 953)
At 30 June 2023 342 257 308 349 3 455 632 4 101 444 8 207 683
Net carrying amount

At 30 June 2023 16 581 523 500 097 6 414 224 5 453 381 28 949 225
At 30 June 2022 8 401 880 603 979 6 288 836 4 677 169 19 971 864
Certain properties are encumbered as indicated in note 16.3.
16.2 Reconciliation of opening and closing carrying amounts
2023 2022
USD USD
Net carrying amount at the beginning of the year 19 971 864 9 333 642
Cost 25 543 323 10 728 852
Accumulated depreciation and impairment losses ( 5 571 459) ( 1 395 210)
Movement for the year:

Additions at cost 6 287 912 11 888 085
Conversion of joint venture to subsidiary - 2 530 861
Depreciation charge for the year ( 2 751 848) ( 3 919 313)
Revaluation 5 209 654 -
Transfer to inventory ( 3 295) -
Exchange movements 234 938 138 589
Net carrying amount at the end of the year 28 949 225 19 971 864
Cost 37 156 908 25 543 323
Accumulated depreciation and impairment losses ( 8 207 683) ( 5 571 459)
16.3 Security
Net book value of a property pledged as security for borrowings (Regional

Operations) 453 776 572 192
Details of the borrowings are shown in note 29.

16.4 Impairment loss

The Group has made an impairment assessement as at year end on the condition of the assets and their ability to
continue to produce economic benefits for the group and no impairment indicator was observed and no loss was
recognised or provided for.
16.5 Revaluation, depreciation methods and useful lives

Property, plant and equipement are recorded at fair value based on periodic, but at least five years, valuations by external
independent valuers, less subsequent depreciation .A revaluation surplus is credited to non distributable reserves (note
25). Refer to note 5 for depreciation rates.
16.6 Carrying amounts that would have been recognized if property, plant and dequipment were stated at cost
If the property, plant and equipment were stated on historical cost basis, the amounts would be as follows:
2023 2022
USD USD
Freehold property
Cost 13 158 599 8 575 890
Accumulated depreciation ( 387 140) ( 338 117)
Net book amount 12 771 459 8 237 773
Leasehold improvements
Cost 808 446 788 941
Accumulated depreciation ( 308 349) ( 184 963)
Net book amount 500 096 603 978
Fittings and equipment

Cost 10 020 542 8 958 579
Accumulated depreciation ( 3 465 954) ( 2 552 181)
Net book amount 6 554 588 6 406 399
Motor vehicles
Cost 8 018 957 7 279 203
Accumulated depreciation ( 4 105 529) ( 2 555 490)
Net book amount 3 913 428 4 723 713
16.7 Recognised fair value measurements

(i) Valuation techniques used to determine level 3 fair values
The Group obtains independent valuations for its property, plant and equipment at least every five years. At the end of each
reporting period , the directors update their assessment of the fair value of each property, plant and equipment, taking into
account the most recent independent valuations. The directors determine an asset’s value within a range of reasonable fair
value estimates.
The best evidence of fair value is current prices in an active market for similar properties. Where such information
is not available the directors consider information from a variety of sources including :
• current prices in an active market for assets of a different nature or recent prices of similar assets in less
active markets, adjusted to reflect those differences
• cost of building or rent purchase costs for similar assets or lease improvements or shop fittings adjusted for wear
and tear
(ii) Valuation process

The Group engages external, independent and qualified valuers to determine the fair value of the group’s propety, plant
and equipment at least every three years. As at 30 June 2023, the fair values of the property, plant and equipment have
been determined by Hammer and Tongues and Intergrated Properties for Zimbabwean units and R.M Fumbeshi & Co
for Zambian entities and PCDA Consultants for Malawian entities. A directors’ valuation has been performed for certain
smaller classes of equipment in our smaller business units. The independent valuation was done for the first time as the
Group adopted revaluation model as at 30 June 2023.
The main level 3 inputs used by the group are derived and evaluated as follows:
• Freehold buildings – marketability of the property, environmental factors, town planning, title and tenure
was estimated by Intergrated Properties or management based on comparable transactions and industry
data.
• Leasehold improvements/fittings – cost to completion and condition and are consistent with budgets developed
internally
• Motor vehicles – market comparison of similar vehicles and condition sold in the recent market activity

CONTRIBUTIONS

17 Leases
This note provides information for leases where the Group is a lessee.
(i) Amounts recognised in the statement of financial position

2023 2022
USD USD
Right of use assets
Buildings 12 915 358 2 690 745
Lease liabilities
Current 3 747 809 1 413 679
Non-current 9 086 201 1 452 780
12 834 010 2 866 459
Additions or remeasurements to the right of use assets during the year were USD13 085 675 (2022- USD1 382 259).
(ii) Amounts recognised in the statement of profit or loss

The statement of profit or loss shows the following amounts relating to leases:
2023 2022
USD USD
Depreciation charge of right of use assets
Buildings 2 820 115 1 347 304
Interest expense (included in finance cost) 845 119 613 896
Expense relating to short term leases (included in operating expenses) 679 509 1 197 067
Total cash outflow for leases in 2023 was USD 3 180 017 (2022-USD 1 100 861).
18 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
2023 2022
USD USD
18.1 Reconciliation of movements in associates and joint ventures
Opening balance 1 907 095 1 824 512

Purchases at cost - 1 068 000
Reclassification from other receivables - 219 956
Equity accounted earnings 178 160 610 513
Conversion of joint venture to subsidiary - ( 1 497 886)
Dividends declared - ( 318 000)
Reclassification to other receivables ( 235 302) -
Balance at the end of the year 1 849 953 1 907 095
Investments in associates and joint ventures comprise of:

2023 2022
USD USD
Taeuca Investments (Pvt) Ltd t/a Gain Hardware - 394 874

National Foods Logistics (Private) Limited 1 849 953 1 515 221
Maton Trading (Private) Limited - -
1 849 953 1 907 095

18.2 The Group has the following investments in associates and joint ventures:
18.2.1 Taeuca Investments (Pvt) Ltd t/a Gain Hardware

The Group, through its holding company, together with its partners at Gain Cash and Carry established a hardware
outlet trading as Gain Hardware (“Gain”) effective 1 April 2021. Gain was a partnership owned 50%: 50% between Axia
and Gain Cash and Carry. Gain is involved in the provision of hardware supplies to the wholesale and retail market. The
Group exercises joint control in Gain and has rights to the net assets of the arrangement. As such the joint arrangement
is classified as a joint venture in accordance with International Financial Reporting Standards. The Group has equity
accounted the results of the Gain joint venture. Effective 1 April 2023, the Group disposed off its shareholding in Taeuca
and seized to be a party to the joint venture. At year end the amount receivable was classified as other receivables.
2023 2022
USD USD
Reconciliation of the investment in joint venture;
Balance at the beginning of the year 391 874 326 626
Equity accounted (loss)/ gain ( 156 573) 65 247

Reclassification to other receivables (235 301) -
Balance at the end of the year - 391 873
18.2.2 Maton Trading (Private) Limited

The Group through its Subsidiary company, TV Sales & Home (Private) Limited had a 49% interest in Maton (Private)
Limited t/a Restapedic, a bedding manufacturing business. The Group through its subsidiary TV Sales & Home (Private)
Limited increased its shareholding to 60% effective 1 July 2021. The results of Maton have been consolidated with effect
from 1 July 2021 as indicated in Note 15.1.
2023 2022
USD USD
Reconciliation of the investment in associate;
Balance at the beginning of the year - 1 497 886

Conversion of associate to subsidiary - ( 1 497 886)
Balance at the end of the year - -
18.2.3 National Foods Logistics (Private) Limited

The Group, through its subsidiary Distribution Group Africa (Private) Limited had a 50% interest in National Foods
Logistics (Private) Limited (“Natlog”), a logistic and distributiion company. The Group exercises joint control in Natlog, as
such the investment was classified as a Joint Venture in accordance with International Financial Reporting Standards.
The Group equity accounted the results of Natlog Joint Venture.
2023 2022
USD USD
Reconciliation of the investment in joint venture;
Balance at the beginning of the year 1 515 221 -

Reclassification from other receivables - 219 956
Acquisition of interest in joint venture - 1 068 000
Equity accounted earnings 334 732 545 266
Dividends - ( 318 000)
Balance at the end of the year 1 849 953 1 515 222

CONTRIBUTIONS

18.3 Summarised financial information of associates and joint ventures
Non- Non-
Revenue Profit/ (loss) current Current current Current
after tax assets assets liabilities liabilities
USD USD USD USD USD USD
Taeuca Investments (Pvt) Ltd

t/a Gain Hardware
30 June 2023 - - - - - -
30 June 2022 2 107 647 130 495 243 055 438 269 - 87 274
National Foods Logistics

(Private) Limited
30 June 2023 11 471 089 669 463 3 642 557 1 362 199 76 316 1 219 716
30 June 2022 11 370 269 1 406 803 2 726 113 1 168 670 77 934 706 706
Cash
Interest Interest Taxation and cash
Depreciation income expense charge equivalents
USD USD USD USD USD
Taeuca Investments (Pvt) Ltd

t/a Gain Hardware
30 June 2023 - - - - -
30 June 2022 34 619 - 2 907 16 850 41 716
National Foods Logistics

(Private) Limited
30 June 2023 141 435 9 114 056 219 834 2 698 054
30 June 2022 130 087 31 182 133 461 958 666 207
18.4 Reconciliation of the carrying amount of associates 2023

National
Foods
Logistics
(Private)
Limited
USD
Total shareholders equity 3 708 724

Net assets attributable to shareholders of the associate 3 708 724
DGA's effective share (%) 50.00%

DGA's effective share (USD) 1 854 362
Reconciling items:
Other adjustments ( 4 409)
Carrying amount at the end of the year 1 849 953

19 Description of Group Investments in Subsidiary, Associate and Joint Venture companies

Listed below are the Group’s effective ordinary shareholding in the various business units and excludes dormant
companies:
2023 2022
Speciality Retail
TV Sales & Home (Private) Limited 66.67% 66.67%
Maton Trading (Private) Limited# 40.00% 40.00%
Moregrow Enterprises (Private) Limited 51.00% 51.00%
Geribran Services (Private) Limited t/a Transerv# 50.51% 50.51%
Freekstyle Investments (Private) Limited # 66.67% 66.67%
Taeuca Investments (Pvt) Ltd t/a Gain Hardware* - 50.00%
Legend Lounge (Private) Limited 66.67% 66.67%
Distribution
Distribution Group Africa (Private) Limited 50.01% 50.01%

Innscor Distribution (Private) Limited # 50.01% 50.01%
Comox Trading (Private) Limited # 50.01% 50.01%
Eagle Agencies (Private) Limited 50.01% 50.01%
Tevason Investments (Private) Limited t/a FreshPro # 50.01% 50.01%
Vital Logistics Zimbabwe (Private) Limited # 50.01% 50.01%
Innscor Distribution Africa Limited 50.00% 50.00%
Innscor Distribution (Malawi) Limited # 50.00% 50.00%
Photo Marketing (Malawi) Limited t/a Comox # 50.00% 50.00%
Innscor Distribution (Zambia) Limited # 50.00% 50.00%
Comox Trading (Zambia) Limited # 50.00% 50.00%
Mukwa Distribution (Zambia) Limited # 50.00% 50.00%
Hat On Investments (Private) Limited # 50.01% 50.01%
Shipserv (Private) Limited # 40.01% 40.01%
Firm Action (Private) Limited# 50.01% 50.01%
National Foods Logistics (Private) Limited* 50.00% 50.00%
Corporate Services
Axia Operations (Private) Limited 100.00% 100.00%
Excalibur Mauritius Limited 100.00% 100.00%
Moregrow Mauritius Limited 50.00% 50.00%
* Associates or Joint Venture

# Subsidiary of subsidiary
^ Some group subsidiary companies, also have subsidiaries which include non-controlling interests. The Group only
consolidates its direct subsidiary, which would have consolidated its related subsidiaries
19.1 Country of incorporation

All Group companies are incorporated in Zimbabwe, except for the following operating companies:
Company Country of
incorporation
Excalibur Mauritius Limited Mauritius
MoregrowMauritius Limited Mauritius
Innscor Distribution Africa Limited Mauritius
Innscor Distribution (Malawi) Limited Malawi
Photo Marketing (Malawi) Limited Malawi
Innscor Distribution (Zambia) Limited Zambia
Comox Trading (Zambia) Limited Zambia
Mukwa Distribution (Zambia) Limited Zambia

CONTRIBUTIONS

2023 2022
USD USD
20 Financial Assets at fair value through profit or loss
Financial assets comprise of;
Listed equities 374 080 98 673
Derivative financial asset 131 702 274 848
Total 505 782 373 521
Reconciled as follows:
Balance at the beginning of the year 373 521 697 445

Acquisitions of financial asset 343 643 -
Fair value adjustments and movements on listed equities and
derivative financial asset ( 211 382) ( 323 924)
Balance at the end of the year 505 782 373 521
Axia Operations (Private) Limited, by way of guarantee, underwrote to Innscor Africa Limited (“IAL”) an amount of
USD 653 820 which represented the payment made by IAL to the Zimbabwe Revenue Authority for withholding tax
arising from the unbundling of its Speciality Retail and Distribution businesses through a dividend in specie of Axia
Corporation Limited shares in May 2016. In respect of this withholding tax IAL retained 12 886 241 Axia Corporation
Limited shares which were registered in its name. During the year ended 30 June 2018, IAL disposed of 7 000 000 shares
and Axia repaid the USD 653 820 underwritten to IAL.
The financial asset which emanates from this transaction is calculated at the fair value of the remaining Axia Corporation
Limited shares taking into account relevant transaction costs, less any dividends received by IAL on the shares. The
resultant uplift in the value of this financial asset is included in the statement of profit or loss and other comprehensive
income. At 30 June 2023, the financial asset was valued at USD 131 702 [2022: USD 274 848].
Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly.
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on
observable market data.
Fair value through profit or loss

Level 1 Level 2 Level 3 Total
USD USD USD USD
30 June 2023
Listed equities 374 080 - - 374 080
Derivative financial asset - 131 702 - 131 702
374 080 131 702 - 505 782
30 June 2022
Listed equities 98 673 - - 98 673
Derivative financial asset - 274 848 - 274 848
98 673 274 848 - 373 521
There we no transfers between levels during the year.
Valuation techniques used to determine level 2 values
Valuation Significant
technique inputs
Derivative financial asset Market approach Share price

Share disposal
costs

2023 2022
USD USD
21 Inventories
Consumable stores 110 975 288 483
Raw materials 1 354 539 2 510 571
Finished products 36 103 907 35 327 158
Goods in transit 2 681 466 4 789 861
Obsolescence provision ( 1 596 402) ( 1 756 976)
38 654 485 41 159 097
The total amount of inventory write-downs (provisions and write-offs)in respect of obsolescence expenses is
USD 1 913 970 (2022: USD 1 580 019).
Below is a reconciliation of the obsolescence provision:
Opening balance on 1 July 1 756 976 620 009
*Movement in provision for obsolete inventories ( 160 574) 1 083 687

Acquisition of subsidiary - ( 53 280)
Closing balance on 30 June 1 596 402 1 756 976
*Movement in provision for obsolete inventory include inventory write-offs charged to statement of profit or loss
amounting to USD 1 913 970 (2022: USD 1 580 019). Refer to note 10.
2023 2022
USD USD
22 Trade and other receivables
Trade receivables 14 415 333 12 417 261
Instalment sales receivables 9 410 206 4 262 408
Prepayments 7 815 873 6 772 134
Rental deposits 35 852 19 723
VAT withholding tax receivable 675 274 265 934
Other receivables 167 660 358 097
32 520 198 24 095 556
Loss allowance ( 281 448) ( 260 112)
32 238 750 23 835 444
Included in other receivables are marketing claims from distribution principals, prepaid customs duties, other
investments and staff loans.
The Group holds trade receivable with the objective of collecting contractual cashflows and therefor measures them
subsequently at amortised costs using the effective interest method as described in note 5.
The following table shows the movement in Lifetime Expected Credit Losses (“ECL”) that has been recognised for trade
and other receivables in accordance with the simplified approach set out in IFRS 9:
Collectively Individually
assessed assesed Total
USD USD USD
Balance on 30 June 2021 27 184 174 324 201 508
movement in provision during the year* 58 605 58 605
Balance on 30 June 2022 85 788 174 324 260 112
movement in provision during the year* 21 336 21 336
Balance on 30 June 2023 107 124 174 324 281 448
Movement in provision for credit losses include actual write-offs and increase in provision amounting to USD 312 677
(2022:USD 108 500) which are disclosed in note 10.

CONTRIBUTIONS

22 Trade and other receivables (continued)
Credit terms vary per business unit. Interest is charged on overdue accounts at varying rates depending on the business
and on the credit terms.If there is no independent rating, risk control assesses the credit quality of the customer, taking
into account its financial position, past experience and other factors.
The Group always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected
credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the
debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors,
general economic conditions of the industry in which the debtors operate and an assessment of both the current as
well as the forecast direction of conditions at the reporting date . The Group has recognised a loss allowance of 100%
against all receivables over 120 days past due because historical experience has indicated that these receivables are
generally not recoverable.
There has been no change in the estimation techniques or significant assumptions made during the current reporting
period. No security or collaterial is held as credit is held when advancing credit facilities.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has
entered into bankruptcy proceedings, or when the trade receivables are over two years past due, whichever occurs
earlier. None of the trade receivables that have been written off is subject to enforcement activities.
The following table details the risk profile of trade receivables (which are collectively assessed) based on the Group’s
provision matrix. As the Group’s historical credit loss experience does not show significantly different loss patterns for
different customer segments, the provision for loss allowance based on past due status is not further distinguished
between the Group’s different customer base.
Trade receivables - days past due

Not Past 120 days
30 June 2023 due 30 days 60 days 90 days 120 days plus Total
Expected credit loss rate 0.1% - 2.1% 0.1% - 4.2% 0.1% - 8.5% 0.1% - 8.5% 0.1% - 8.5% 100%
Gross carrying amount-

trade receivables plus other
receivables 9 410 206 12 131 646 242 633 123 456 1 142 186 1 213 165 24 263 292
Lifetime ECL ( 281 448)
23 981 844
Trade receivables - days past due

Not Past 120 days
30 June 2022 due 30 days 60 days 90 days 120 days plus Total
Expected credit loss rate 0.1% - 2.1% 0.1% - 4.2% 0.1% - 8.5% 0.1% - 8.5% 0.1% - 8.5% 100%
Gross carrying amount-

trade receivables plus other
receivables 12 446 148 4 337 799 165 028 59 371 29 420 - 17 037 766
Lifetime ECL ( 260 112)
16 777 654
The estimated credit loss rates were adjusted for forward looking information such as the impacts of:
- Inflation
- Increase in interests rates
- increase in customer default risk due to liquidity challenges
- customer credit record and credit proofing

22 Trade and other receivables (continued)
Note 36 on credit risk of trade receivables explains how the Group manages and measures credit quality of trade
receivables that are neither past due nor impaired.
2023 2022
Net impairment losses on trade and other receivable recognised in profit or loss USD USD
During the year, the following gains/(losses) were recognised in profit or loss in relation to
impaired financial assets:
Impairment loss - -
Movement in loss allowance for trade receivables 329 241 56 231
329 241 56 231
Due to the short term nature of the current receivables and other receivables, their carrying amount is considered to
be the same as their fair value.
23 Ordinary share capital
23.1 Authorised
999 999 000 ordinary shares of US$ 0.0001 each
1 000 Non-Voting Class “A” ordinary shares of US$ 0.0001 each*
23.2 Issued and fully paid

556 000 308 (2022: 556 000 308 ) ordinary shares of US$ 0.0001 each
*Class “A” shares are non-voting ordinary shares that will be allocated to the Axia Corporation Employee Share Trust.
2023 2022
Opening balance 556 000 308 552 150 308
Issue of shares through exercising of share options - 3 850 000
Closing balance 556 000 308 556 000 308
23.3 Directors’ shareholdings

At 30 June 2023, the Directors held directly and indirectly the following number of shares:
2023 2022
Z. Koudounaris 114 612 912 114 612 912
T.C. Mazingi 861 802 861 802
T.N. Sibanda 1 104 900 980 000
R.M. Rambanapasi 114 985 114 985
L. E. M. Ngwerume 45 406 400 000
J. Koumides - 3 768 983
116 740 005 120 738 682

CONTRIBUTIONS

23.4 Share options
23.4.1 Indigenisation Share Options

As at 30 June 2023, Axia Corporation Limited had the following two Share Option agreements arising from the Group’s
indigenisation transaction:
1) The first option agreement is with an indigenous company, Benvenue Investments (Private) Limited (“Benvenue”).
The terms of the Benvenue Share Option are as follows:
Number of shares: Fifty Million (50 000 000)
Tenure: 10 years (until January 2024)
Pricing: The higher of - 75% of the volume weighted average price of Axia
Corporation Limited shares over the previous 60 trading days,
or for the first five years (until January 2019), US$ 0.19 per
share and, for the second five years, US$ 0.28 per share.
2) The second option is with the Axia Corporation Limited Employee Share Trust. The terms of the Axia Corporation
Limited Employee Share Trust Option are as follows:
Number of shares: Thirty Million (30 000 000)
Tenure: 10 years (until January 2024)
Pricing: At the volume weighted average price of Axia Corporation

Limited shares over the previous 60 trading days.
At the end of the financial year, this share option scheme had a remaining contractual life of half year and no shares
had been issued to the Axia Corporation Limited Employee Share Trust. The share options arising from the Group’s
indigenisation transaction were not dilutive at the end of the financial year.
23.4.2 Employee Share Option Scheme

Share options are granted to Directors and to certain executives of subsidiaries of the Group. The total number of shares
available for the scheme of 54 159 344 was approved by shareholders in a General Meeting, and the number of options
granted is calculated in accordance with the performance-based criteria approved by the Board’s Remuneration
Committee. The number of share options are limited in line with the Victoria Falls Stock Exchange (“VFEX”) regulations.
The pertinent terms of the Axia Corporation Limited Employee Share Option Scheme are as follows;
Maximum number of shares available 54 159 344
Vesting period Can be exercised after 3 years and before the end of 5 years
Exercise price The higher of 45-day volume weighted average price of Axia Corporation
Limited shares immediately preceding the offer date, or the nominal value
of the shares
Expiry period 2 years from the date on which each option may first be exercised
Under the scheme, up to 1% of the issued share capital of the company (5 415 934 shares) are availed to Directors and
Key Management of the Group annually over a 10 year period. Options are conditional on the employee completing
three years of service (vesting period). The shares are awarded, subject to achievement of a Headline Earnings growth
performance condition outlined in the approved scheme document. The Group has no legal or constructive obligation
to repurchase or settle the options in cash.

23.4.2 Employee Share Option Scheme (continued)
The following reconciles share options at the beginning and at the end of the year:
Number of Number of
options options
2023 2022
Balance at the beginning of the year - 3 850 000

Granted during the year - -
Exercised during the year - ( 3 850 000)
Forfeited during the year - -
Balance at the end of the year - -
23.4.3 Value of share options at the end of the year
All remaining share options were exercised hence there is no need for any valuation.
24 Share based payments reserve
The share-based payments reserve is used to recognise the value of equity-settled share-based payments provided to
employees, including key management personnel, as part of their remuneration.
2023 2022
USD USD
Opening balance - 392 800

Utilisation during the year - ( 426 292)
Equity-settled share-based payments expense - 33 492
Closing balance - -
25 Non-distributable reserves
Consists of foreign currency translation reserve.
Foreign
currency
Revaluation translation
reserve reserve Total
Balance on 30 June 2021 - ( 3 598 928) ( 3 598 928)
Exchange differences arising on translation of foreign subsidiaries ( 469 963) ( 469 963)
Balance on 30 June 2022 - ( 4 068 891) ( 4 068 891)
Exchange differences arising on translation of foreign subsidiaries - ( 437 782) ( 437 782)
Revaluation of property, plant and equipment 1 868 818 - 1 868 818
Balance on 30 June 2023 1 868 818 ( 4 506 673) ( 2 637 855)
Nature and purpose of reserves
Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of
financial statements of foreign subsidiaries.
Revaluation surplus– property, plant and equipment

The property, plant and equipment revaluation surplus is used to record increments and decrements on the
revaluation of non-current assets. In the event of a sale of an asset, any balance in the reserve in relation to the asset is
transferred to retained earnings. See accounting policy note 5 for details.

CONTRIBUTIONS

26 Distributable reserves
2023 2022
USD USD
Balance at the beginning of the year 31 349 454 27 334 349

Retained for the year 3 759 927 5 619 135
Dividends paid (note 7.1) ( 1 967 152) ( 1 604 030)
Balance on 30 June 33 142 229 31 349 454
Retained in:
Holding company ( 757 397) ( 620 799)
Subsidiary companies 33 721 466 31 359 740
Associate companies and joint ventures 178 160 610 513
33 142 229 31 349 454
27 Non-controlling interests in significant subsidiaries

The Group has the following subsidiaries that have significant non-controlling interests:
Distribution Group Africa Innscor Distribution Africa Limited

(Private) Limited
2023 2022 2023 2022
Principal place of business Zimbabwe Zimbabwe Zambia & Malawi Zambia & Malawi
Proportion of ownership held by non-
controlling interests 49.99% 49.99% 50% 50%
USD USD USD USD
Profit allocated to non-controlling interests ( 762 944) 97 085 1 400 911 698 969
Accumulated non-controlling interests in
subsidiaries 7 834 523 8 934 439 4 536 733 2 426 162
Statement of profit or loss

Revenue 62 033 897 70 481 954 43 187 333 44 059 792
Operating profit (EBITDA) 1 788 691 4 752 023 4 553 251 4 022 729
Statement of financial position
Current assets 15 622 756 21 502 506 15 355 704 11 953 211
Non-current assets 14 294 809 8 720 876 4 471 318 1 562 672
Current liabilities 10 578 736 12 374 658 10 065 163 8 471 108
Non-current liabilities 5 700 661 290 161 688 394 192 452
TV Sales & Home (Private) Limited Geribran Services (Private) Limited

2023 2022 2023 2022
Principal place of business Zimbabwe Zimbabwe Zimbabwe Zimbabwe
Proportion of ownership held by non-
controlling interests 33.33% 33.33% 33.33% 33.33%
USD USD USD USD
Profit allocated to non-controlling interests 2 346 267 3 046 027 292 353 605 599
Accumulated non-controlling interests in
subsidiaries 12 608 147 11 096 522 3 399 322 3 152 913
Statement of profit or loss

Revenue 68 713 174 61 305 065 29 815 561 28 334 318
Operating profit (EBITDA) 12 452 337 14 471 581 2 728 821 1 970 796
Statement of financial position
Current assets 32 077 380 25 912 100 10 214 381 10 579 255
Non-current assets 20 731 797 12 369 577 4 373 141 2 191 718
Current liabilities 15 446 384 8 869 160 4 870 513 5 612 175
Non-current liabilities 6 014 161 2 038 130 2 848 304 787 992
Dividends paid to non-controlling interests have been disclosed under note 7.2
The above summarised financial information of these subsidiaries is based on amounts before inter-company
eliminations.

2023 2022
USD USD
28 Net deferred tax liabilities/(assets)
28.1 Reconciliation
Opening balance ( 272 352) ( 339 120)
Charge to profit or loss (note 13.1) 1 063 598 70 354
Deferred tax on revaluation surplus 1 476 357 -
Exchange differences arising on transation of foreign subsidiaries ( 74 536) ( 70 431)
Conversion of associate or joint venture to subsidiary (note 15.1) - 1 391
Closing balance 2 193 067 ( 272 352)
28.2 Analysis of net deferred tax liabilities / (assets)

Accelerated depreciation for tax purposes 2 636 971 499 114
Tax losses ( 261 656) ( 273 289)
Derivative financial asset 32 557 66 113
Instalment credit receivables 449 540 162 404
Allowance for credit losses ( 47 784) ( 51 484)
Provision for obsolete inventories ( 344 232) ( 366 978)
Provision for leave pay, incentives and warranties ( 272 329) ( 308 232)
2 193 067 ( 272 352)
The net deferred tax (assets) / liabilities are made up as follows:

Deferred tax assets ( 224 443) ( 721 670)
Deferred tax liabilities 2 417 510 449 318
2 193 067 ( 272 352)
The Group recognises deferred tax assets arising from tax losses where there is a reasonable expectation that sufficient
taxable profit will be available in future through various initiatives by the Directors to utilise these losses. All assessed
losses realised during the year were from the distribution business.
2023 2022
Interest rates USD USD
29 Interest-bearing borrowings
Short-term financing
Secured
Regional Operations 14% up to 365 days 2 847 165 2 700 743
Unsecured
Regional Operations 12% to 22% up to 365 days 2 032 495 1 334 716
Unsecured
Zimbabwe Operations 12% up to 365 days 6 848 475 3 693 888
Overdrafts 12% On demand 1 151 206 1 960 595
Total short-term financing 12 879 341 9 689 942
Total interest-bearing borrowings 12 879 341 9 689 942
As at 30 June 2023, the Board of Directors had authorised aggregate borrowing limits of USD 13 686 million (2022 - USD
23 662 million) USD denominated facilities with interest costs of 12% while ZWL borrowings range from 75% to 85%.
Short-term borrowings form part of the Group’s core borrowings and are renewed in terms of ongoing facilities negotiated
with the relevant financial institutions. The facilities expire at different dates and are reviewed and renewed when they
mature. Secured facilities in the region are secured by a cession of a property worth USD 453 776 (2022: USD 572 192).
The Group does not have any covenants on its borrowing facilities.
For the majority of the borrowings, the fair values are not materially different from their carrying amounts, since the
interest payable on those borrowings is either close to the market rates or the borrowings are of a short term nature.
Details of the Group’s exposure to the risks arising from borrowings are set out in note 36.

CONTRIBUTIONS

29 Interest-bearing borrowings (continued)
Borrowing powers
In terms of the Articles of Association, the borrowing powers of the company and its subsidiaries (excluding inter-
company borrowings) are limited to twice the aggregate of the nominal amount of the share capital of the company
plus the total free reserves of the company and its subsidiaries. The level of borrowings throughout the year was
adequately covered in this respect.
2023 2022
USD USD
30 Trade and other payables

Trade payables 20 236 509 17 240 355
Accruals 3 682 474 3 199 034
Customer deposits 1 989 989 1 080 712
Other payables 122 707 303 302
26 021 679 21 823 403
Trade payables are non-interest bearing and are normally settled within 30 - 60 days. Other payables are non-interest
bearing and have varying settlement terms.
The carrying amount of trade and other payables are considered to be the same as their fair values due to their short
term nature. Trade and other payables are classified as financial liabilities at amortised costs as described in note 5.
2023 2022
USD USD
31 Provisions and other liabilities
Leave pay 376 968 251 926
Performance contract liabilities-IFRS 15 142 840 708 551
519 808 960 477
Reconciliation of provisions
Performance
contract
liabilities-IFRS
Leave pay 15 Total
USD USD USD
Balance on 30 June 2021 91 404 620 009 711 413

Charge for the year 1 330 746 88 542 1 419 288
Acquired through acqusition of subsidiaries 137 416 - 137 416
Less paid / utilised ( 1 307 640) - ( 1 307 640)
Balance on 30 June 2022 251 926 708 551 960 477
Charge for the year 593 889 69 079 662 968
Less paid / utilised ( 468 847) ( 634 790) ( 1 103 637)
Balance on 30 June 2023 376 968 142 840 519 808
Contract liabilities
Contract liabilities arise from the Group’s policy of revenue recognition. In the Group’s distribution business, certain
contracts provide a customer with a right to make claims or return the goods within a specified period for reasons
such as damaged or near expiry products delivered. The Group estimates the value of such claims, processed against
revenue.
2023 2022
USD USD
32 Capital expenditure commitments

Authorised and contracted 250 000 122 990
Authorised but not yet contracted 5 291 602 7 571 328
5 541 602 7 694 318
The capital expenditure will be financed from the Group’s own resources and existing borrowing facilities.
33 Segmental analysis
Management has determined the Group’s operating segments based on the information reviewed by the Board for
the purposes of allocating resources and assessing performance. The revenue, operating profit, assets and liabilities
reported to the Board are measured consistently with that in the reported consolidated financial statements.

33.1 Business Segments

The reporting structure is summarised as follows:
Speciality Retail
The main operations in this reporting silo are TV Sales & Home (“TVSH”) and Transerv. TVSH is the leading furniture and
electronic appliance retailer with sites located countrywide.
Transerv retails automotive spares and accessories through retail stores and fitment centers to service the needs of its
customers.
Distribution
Distribution Group Africa is a large distribution and logistics concern with operations in Zimbabwe, Zambia and
Malawi. Its core areas of expertise lie in inbound clearing and bonded warehousing, ambient and chilled/frozen
warehousing, logistics, marketing, sales and merchandising services.
Other Segments
This segment reports the Group’s head office support functions, namely company secretarial services, legal, treasury,
internal audit and tax services.
Geographical Segments
The Group is also organised into parcels of businesses incorporated in Zimbabwe, and those incorporated in countries
outside Zimbabwe. See note 19.1 for companies incorporated outside of Zimbabwe.
Speciality Other Intersegment

Retail Distribution Segments adjustments Total
USD USD USD USD USD
Revenue
30 June 2023 98 528 736 105 221 229 - - 203 749 965
30 June 2022 89 639 383 114 541 745 - - 204 181 128
Operating profit / (loss) before

impairment, depreciation and
and fair value adjustments
30 June 2023 15 181 158 6 341 942 (557 919) (120 546) 20 844 636
30 June 2022 16 442 377 8 774 750 (530 037) - 24 687 090
Depreciation and amortisation

30 June 2023 ( 3 575 522) ( 1 968 900) (27 541) - ( 5 571 963)
30 June 2022 (2548 603) ( 2 697 486) (20 527) - ( 5 266 617)
Equity accounted earnings /

(losses)
30 June 2023 - 334 731 (156 571) - 178 160
30 June 2022 - 545 266 65 247 - 610 513
Net interest expense

30 June 2023 ( 1 542 027) ( 1 840 427) 161 889 - ( 3 220 565)
30 June 2022 ( 636 961) ( 1 814 364) (76 970) - ( 2 528 295)
Segment assets
30 June 2023 67 396 699 49 744 587 38 843 769 ( 37 807 774) 118 177 281
30 June 2022 51 052 650 43 739 264 37 610 088 ( 36 019 530) 96 382 472
Segment liabilities
30 June 2023 29 179 362 27 032 954 3 052 517 ( 2 819 375) 56 445 458
30 June 2022 17 307 457 21 328 379 2 346 691 ( 1 111 130) 39 871 397
Capital expenditure
30 June 2023 5 728 643 556 068 3 201 - 6 287 912
30 June 2022 10 041 895 1 843 995 2 195 - 11 888 085

CONTRIBUTIONS

33.2 Geographical information
Operating
Profit Current
Revenue (“EBITDA”) Non-current assets Non-current Current
assets liabilities liabilities
Zimbabwe
Operations
30 June 2023 160 562 632 16 291 385 79 285 956 63 183 216 15 251 520 33 259 756
30 June 2022 160 121 336 20 664 361 58 995 677 53 579 303 3 123 324 29 195 643
Regional
Operations
30 June 2023 43 187 333 4 553 251 4 471 318 15 355 704 688 394 10 065 163
30 June 2022 44 059 792 4 022 729 1 562 672 11 953 211 192 452 8 471 108
(EBITDA) - Earnings Before Interest Tax Depreciation and Amortisation
34 Pension funds
Innscor Africa Pension Fund

This is a self-administered, defined contribution fund. The Fund has been operational since 2000. Membership is
compulsory for employees of the Group who are not members of other occupational pension funds. Contributions
are at the rate of 14% of pensionable emoluments less NSSA of which members pay 7%. Following Axia Corporation
Limited’s (Axia) unbundling from Innscor Africa Limited, Axia’s pensions remained part of the Innscor Africa Pension
Fund.
National Employment of Motor Industry Pension Fund

This is a defined contribution fund which covers employees in specified occupations of the motor industry. The majority
of employees at Transerv are members of this fund. The minimum contributions are 5% each for members and employer.
Members have an option to elect to contribute up to a maximum of 10%.
National Social Security Authority Scheme (NSSA)

The scheme was established, and is administered, in terms of statutory Instrument 393 of 1993. Introduced in 1994, the
Pension and Other Benefits Scheme is a defined contribution plan based on a 50/50 contribution from the employers
and employees and are limited to specific contributions legislated from time to time.
National Pension Scheme Authority (NAPSA) – Zambia

The scheme was established and is administered, in terms of the Government of Zambia Act of 1996 and enacted
effective 12th February 2000. This came after the formation of the Zambia National Provident Fund which has been in
existence since 1966 with a mandate to act as the main vehicle for providing retirement and social security benefits
to workers in the country. The benefits are based on a 50/50 contribution from the employers and employees and are
limited to specific contributions legislated from time to time.
NICO Life (Group Pension Scheme) – Malawi

NICO Life was established in line with the Pensions Act of 2010 of Malawi whereby both the employer and employee
contribute. This is a Defined Contribution Arrangement with employees contributing 5% and employers contributing
10% of pensionable earnings.

34 Pension funds (continued)
Pension costs recognised as an expense for the year are as follows:

2023 2022
USD USD
Zimbabwe Operations
Innscor Africa Pension Fund 102 383 81 873
National Social Security Authority Scheme & Workers’ Compensation Insurance
Fund 183 211 146 509
285 594 228 382
Regional operations
Workers Compernsation Insurance Fund (Zambia) 5 028 4 913
National Pension Scheme Authority (Zambia) 36 684 30 458
NICO Life (Malawi) 16 792 22 759
58 504 58 130
Total Pension costs 344 098 286 512
35 Related party transactions
35.1 Trading transactions

Related party activities consist of transactions between Axia Corporation Limited’s consolidated entities, its associates
and joint ventures. Balances and transactions between the Company and its subsidiaries, its associates and joint
ventures , which are related parties, have been eliminated on consolidation and are not disclosed in this note. Details of
transactions between Group companies and other related parties are disclosed below.
Transactions with related parties are carried out at terms equivalent to those that prevail in an arms length transaction.
The amounts outstanding are unsecured and will be settled on normal terms. No expense has been recognised in the
current or prior periods for bad or doubtful debts in respect of the amounts owed by related parties.
Related party transactions are summarised as follows:
rent trade & trade &

services received interest other other
sales charge received receivables payables
Name of related party USD USD USD USD USD USD
Instinct Risk Advisory

30 June 2023 - 133 908 - - - -
30 June 2022 - 114 372 - - - -
Instinct provides internal audit services to the group and all its entities.
Innscor Africa Limited

30 June 2023 - 32 351 - - - -
30 June 2022 - 30 048 - - - -
Innscor Africa Limited provides tax consultancy support services to the Group and its related companies.
35.2 Compensation of key personnel to the Group

2023 2022
USD USD
Short - term employee benefits (note 10.2.1) 4 403 661 4 065 762
35.3 Transactions with Directors

The Group has leased properties from various companies in which some of the Directors have either a financial or
custodial interest. The leases are undertaken at arm’s length basis. The Group also pays consultancy fees to a non-
executive Director from time to time.
2023 2022
USD USD
Lease payments 346 260 258 045

Consultancy fees to Director related entity 223 716 261 872

CONTRIBUTIONS

35 Related party transactions (continued)
35.4 Other related party payables

2023 2022
USD USD
Amount payable to Axia Corporation Employee Share Trust (Private) Limited* 51 658 416
*Dividends paid to the Axia Corporation Employee Share Trust (Private) Limited were held in trust by Axia Corporation
Limited and earning interest amount equivalent to the Group’s average cost of borrowing.
36 Financial risk management objectives and policies

The Group’s principal financial instruments comprise financial assets, trade and other receivables, cash and cash equivalents,
interest-bearing borrowings and trade and other payables. The main purpose of these financial instruments is to raise
finance for the Group’s operations or to achieve a return on surplus short-term funds. The Group has various other financial
assets and financial liabilities such as trade receivables and trade payables, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency risk, credit risk, liquidity risk
and equity price risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below:
Cash flow and fair value interest rate risk

Interest rate risk arises from long term borrowings with variable rates. The Group’s policy is to adopt a non-speculative
approach to managing interest rate risk. Approved funding instruments include bankers’ acceptances, call loans,
overdrafts, commercial paper, foreign loans and where appropriate long term loans. Borrowings at fixed rates however
is not feasible given current inflationary environment.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on short-term loans
and overdrafts.
There is a material impact on the Group’s equity.
2023 2022
USD USD
Effect on profit before tax
Increase of 25% ( 2022 : 50%) ( 604 057) ( 1 010 895)

Decrease of 25% ( 2022 : 50%) 604 057 1 010 895
Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. As a result of significant investment operations in countries outside Zimbabwe, the
Group’s statement of financial position can be affected significantly by movements in foreign currency exchange rates. The
Group also has transactional currency exposures. Such exposure arises from the sale or purchase, by an operating unit, in
currencies other than the unit’s functional currency. The Group limits exposure to exchange rate fluctuations by either pre-
paying for purchases, securing forward contracts to take advantage of exchange rate movements and/or retaining stock until
the foreign currency to settle the related liability has been secured.
Exposure to exchange rate fluctuations and foreign denominated loans is monitored by Group Management and
subsidiaries manage short term exposures within approved parameters.
The ZWL dollar-denominated bank loans and foreign creditors are expected to be repaid with receipts from ZWL dollar-
denominated sales. For Zimbabwean entities the impact is worserned by the hyperinfationary economic situation persisting
in Zimbabwe and the group hedges by maintaining a net monetary liability position in ZWL.

36 Financial risk management objectives and policies (continued)
The carrying amounts of the Group’s foreign currency denominated monetary assets and liabilities at the reporting date are as follows:
30 June 2023
Currency Liabilities Assets Net position
South African Rand ( 51 921 302) 41 833 807 ( 10 087 495)

USD equivalent ( 2 773 440) 2 234 604 ( 538 836)
Zimbabwean Dollars (19 497 949 351) 11 705 280 542 (7 792 668 809)
USD equivalent ( 2 785 421) 1 672 183 ( 1 113 238)
30 June 2022
Currency Liabilities Assets Net position
South African Rand ( 57 900 835) 20 615 823 ( 37 285 011)

USD equivalent ( 3 893 802) 1 386 404 ( 2 507 398)
Zimbabwean Dollars (5 443 878 381) 5 417 097 496 ( 26 780 886)
USD equivalent ( 7 776 969) 7 738 711 ( 38 258)
The following table details the Group’s sensitivity to a 25% increase in the ZWL against the United States of America Dollar, and
South African Rand. The 25% represents management’s assessment of reasonably possible change In foreign exchange rates. A
positive number below indicates an increase in profit where the ZWL strenghtens or weakens in a favorable manner againts the net
exposure.
Effect on proft Effect on

Change in rate before tax equity
USD USD
30 June 2023
South African Rand +25% 107 767 75 437

-25% ( 107 767) ( 75 437)
+25% 222 648 167 609

Zimbabwean Dollar -25% ( 222 648) ( 167 609)
30 June 2022
South African Rand +25% 501 480 351 036

-25% ( 501 480) ( 351 036)
Zimbabwean Dollar +25% 7 652 5 760

-25% ( 7 652) ( 5 760)
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or a customer contract,
leading to a financial loss.
The Group trades only with recognised, creditworthy third parties. It is the Group’s policy that all customers who wish
to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on
an ongoing basis with the result that the Group’s exposure to debt impairment is not significant. Refer to note 22 for
detailed disclosure on the ECL analysis.
There is no concentration risk as the Group trades with a wide range of customers with different risk profiles. Credit
limits are set by the Group to avoid
exposure to a single customer.
Where it sees fit, the Group can from time to time ask for collateral security from customers. This is done after assessing
the customers’ ability to honour their obligations and the level of exposure. Collateral can be properties, listed equities
or other assets.

CONTRIBUTIONS

36 Financial risk management objectives and policies (continued)
With respect to credit risk arising from the financial assets of the Group, which comprise cash and cash equivalents and
financial assets at fair value through profit or loss, the Group’s Executive Committee approves all counterparties, sets
and monitors exposure limits and terms of engagement.
The maximum exposure arising from default equals the carrying amount of the financial assets as disclosed in the
statement of financial position less the market value of any security held.
Liquidity risk
The Group’s objective is to maintain a balance between continuity of funding through a well managed portfolio of
short-term investments and/or flexibility through the use of bank overdrafts and interest-bearing borrowings, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and
liabilities.
The table below summarises the maturity profile of the Group’s financial assets and liabilities:
Within 3 Between 4 -12 More than 12

months months months Total
30 June 2023 USD USD USD USD
Liabilities
Interest-bearing borrowings 12 879 341 - - 12 879 342
Trade and other payables 26 021 679 - - 26 021 679
Contract liabilities 142 840 - - 142 840
Total 39 043 860 - - 39 043 861
Assets
Cash and cash equivalents 2 839 285 - - 2 839 285
Trade and other receivables excluding
prepayments 19 194 560 4 798 640 - 23 993 200
Financial assets 505 782 - - 505 782
Total 22 539 626 4 798 640 - 27 338 266

months months months Total
30 June 2022 USD USD USD USD
Liabilities
Interest-bearing borrowings 9 689 942 - - 9 689 942
Trade and other payables 21 823 403 - - 21 823 403
Contract liabilities 708 551 - - 708 551
Total 31 513 346 - - 32 221 896
Assets
Cash and cash equivalents 5 723 036 - - 5 723 036
prepayments 13 630 212 3 407 553 - 17 037 765
Financial assets 373 521 - - 373 521
Total 19 726 769 3 407 553 - 23 134 322
37 Fair value of financial instruments

The estimated net fair values of all financial instruments, including instalment debtors, approximate the carrying
amounts shown in the financial statements as at the reporting date (30 June 2023).
38 Capital management
The primary objective of the Group’s capital management is to ensure that all its companies maintain healthy capital
ratios in order to support the business and maximise shareholder value.
The Group manages its capital (total equity and debt) and makes adjustment to it in light of changes in the economic
environment. To maintain or adjust the capital structure the Group may adjust the dividend payment to shareholders,
return on capital to shareholders, or issue new shares as well as reduce or increase debt levels. No changes were made
to the objectives, policies or processes during the year ended 30 June 2023.

38 Capital management (continued)
The Group manages capital using debt to equity ratios, which is calculated as total borrrowings divided by the sum of
total equity and borrowings.
2023 2022
USD USD
Total borrowings 12 879 341 9 689 942

Cash and cash equivalents ( 2 839 285) ( 5 723 036)
Net borrowings 10 040 056 3 966 906
Equity 61 731 823 56 511 075
Gross Debt to equity ratio 21% 17%

Net debt to equity ratio 16% 7%
39 Contingent liabilities
There were no contingent liabilities as at 30 June 2023.
40 Events after reporting date

There have been no significant events after the reporting date.

OVERVIEW PERFORMANCE STRATEGIC BUSINESS SUSTAINABILITY CUSTOMER HUMAN SUSTAINABLE CLIMATE COMMUNITY FINANCIAL
CONTRIBUTIONS
COMPANY
FINANCIAL
REPORTS
Independent Auditor’s Report 110
Company Statement of Profit or Loss and Other Comprehensive Income 113
Company Statement of Financial Position 114
Company Statement of Changes in Equity 115
Company Statement of Cash Flow 116
Notes to the Company Financial Statements 117
109
Tel/Fax: +263 242 703876/7/8 Kudenga House
Cell: +263 772 573 266/7/8/9 3 Baines Avenue
bdo@bdo.co.zw P.O. Box 334
www.bdo.co.zw Harare
Zimbabwe
REPORT OF THE INDEPENDENT AUDITORS
TO THE MEMBERS OF
AXIA CORPORATION LIMITED
Adverse Opinion
We have audited the financial statements of AXIA CORPORATION LIMITED which comprise the statement of
financial position as at 30 June 2023, the statement of profit or loss and other comprehensive income, statement
of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion, except for the effects of the matters discussed in the Basis for Adverse Opinion section of our
report, the accompanying financial statements do not present fairly, the financial position of AXIA CORPORATION
LIMITED as at 30 June 2023, and its financial performance and cash flows for the year then ended in accordance
with International Financial Reporting Standards.
Basis for Adverse Opinion
Non-compliance with International Accounting Standard 21 (IAS 21), The Effects of Changes in Foreign Exchange
Rates and International Accounting Standard 29 (IAS 29), Financial Reporting In Hyperinflationary Economies.
a) Comparative financial information and opening balances.

The Company’s functional currency before the change to United States dollar was ZWL, which is a currency
of a hyperinflationary economy. In terms of International Accounting Standard 21 (IAS 21), The Effects of
Changes in Foreign Exchange Rates, the results and financial position of an entity whose functional currency
is the currency of a hyperinflationary economy shall be translated into a different presentation currency by
applying the closing rate on the inflation adjusted statement of financial position on the date of the change.
The Company did not adopt as its opening balances and comparative financial information, balances derived
in terms of IAS 21 and IAS 29, as described above, instead the Company converted its historical balances and
transactions using the monthly average exchange rates and spot rates.
The non compliance with IAS 21 on comparative financial statements and opening balances resulted in
the overstatement of investments in subsidiaries associates and joint ventures by USD 24,651,925 and
overstatement of shareholders’ equity by USD 24,476,081.
Our opinion on the current year financial statements is modified because of the effects opening balances
have on current year financial results and the comparability of current year financial results with those of
prior year.
b) Use of monthly average exchange rates to translate transactions to functional currency.
The Company’s functional currency changed from ZWL to USD on 1 July 2022 but the Company continued to
record transactions in ZWL for the period 1 July 2022 to 31 May 2023. The transactions were translated to the
functional currency at monthly average rates. Due to the volatility of exchange rates between the United
States dollar and the Zimbabwean dollar for the period, 1 March to 31 May 2023 where the ZWL depreciated
by approximately 133%, a monthly average exchange rate cannot be considered to approximate the actual
rate of exchange on the day of a transaction. IAS 21 paragraph 22, states that the use of an average rate is
inappropriate if exchange rates fluctuate significantly. The financial impact of the non compliance with IAS
21 could not be determined but it is considered to be material to the financial statements.
Due to the significance of the non compliance, we cannot express an opinion on the accuracy of revenue,
expenses and exchange gains and losses
BDO Zimbabwe, a Zimbabwean partnership, is a member of BDO International Limited, a UK company limited by guarantee and forms part of the international BDO
Network of independent member firms.
A list of partner names is available for inspection at our registered office, No. 3 Baines Avenue, Harare.

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of Financial Statements
section of our report. We are independent of the Company in accordance with the International Ethics Standards
Board for Accountants’ Code of Ethics for Professional Accountants (Parts A and B), together with other ethical
requirements that are relevant to our audit of financial statements in Zimbabwe, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that in our professional judgement were of most significance in our audit
of financial statements. Except for the matters described in the Basis for Adverse Opinion section, we have
determined that there are no other key audit matters to communicate in our report.
Responsibilities of the Directors for the financial statements

The Directors are responsible for the preparation and fair presentation of the financial statements in accordance
with International Financial Reporting Standards and for such internal controls as the directors determine are
necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue
operating as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations,
or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with International Standards on Auditing (ISAs) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
• Conclude on the appropriateness of the Company’s use of the going concern basis of accounting and based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue operating as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.

We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
Report on other legal and regulatory requirements

In our opinion, due to the impact of the matter discussed in the Basis for Adverse Opinion section of our report,
the financial statements of the Company are not properly drawn up in accordance with the requirements of
Section 193(1)(a) of the Companies and Other Business Entities Act (Chapter 24:31).
The audit engagement partner on the audit resulting in this independent auditors report is Davison Madhigi (PAAB
Practising Number 0610)
__________________________________
BDO Zimbabwe
Chartered Accountants
27 October 2023
Kudenga House
3 Baines Avenue
Harare

CONTRIBUTIONS
COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME
2023 2022
Note USD USD
Revenue - -
Cost of sales - -
Gross profit - -
other income 187 15 513

operating expenses C1 ( 485 483) ( 438 464)
Operating loss before impairment, depreciation and amortisation ( 485 296) ( 422 951)
financial income C2 2 323 450 2 164 106
Profit before interest, equity accounted earnings and tax 1 838 154 1 741 155
interest income C3 39 969 38 338

interest expense C4 ( 5 814) ( 1 918)
tax expense C5 ( 41 755) ( 33 893)
Other comprehensive income
other comprehensive income for the year - -
Total comprehensive income for the year 1 830 554 1 743 682
Earnings per share (cents)
Basic earnings per share C6 0.33 0.32
Headline earnings per share C6 0.33 0.32
Diluted basic earnings per share C6 0.33 0.31
Diluted headline earnings per share C6 0.33 0.31
* Accounting policy notes of the Company are the same as Group accounting policies. Refer to accounting policy notes on
pages 63 to 81.
The above Company statement of profit or loss and other comprehensive income should be read in conjuction with the
accompanying notes.

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
COMPANY COMPANY
Notes 2023 2022
USD USD
ASSETS
Non-current assets
investments in subsidiaries and joint ventures C7 30 672 401 30 592 401
30 672 401 30 592 401
Current assets
trade and other receivables C8 1 021 380 466 075
cash and cash equivalents 281 43 526
1 021 661 509 601
Total assets 31 694 062 31 102 002
EQUITY AND LIABILITIES

Capital and reserves
ordinary share capital 23 55 600 55 600
share premium 3 620 572 3 620 572
non-distributable reserves 27 700 642 27 700 642
distributable reserves ( 757 397) ( 620 799)
Total equity 30 619 417 30 756 015
Current liabilities
other payables and accruals C9 1 074 645 345 987
1 074 645 345 987
Total equity and liabilities 31 694 062 31 102 002
The above Company statement of financial position should be read in conjuction with the accompanying notes.
__________________________________ __________________________________

CONTRIBUTIONS
COMPANY STATEMENT OF CHANGES IN EQUITY

Share *Share based Non-

Ordinary premium payments Distributable Distributable
Share Capital reserve reserve Reserves Reserves Total
Balance at 30 June 2021 55 215 2 186 350 392 800 27 700 642 ( 760 450) 29 574 556
Profit for the year - - - - 1 743 682 1 743 682
New shares issued 385 1 007 930 - - - 1 008 315
Transfer to share capital - 426 292 ( 426 292) - - -

and share premium
Dividends paid - - - - ( 1 604 030) ( 1 604 030)
Recognition of share - - 33 492 - - 33 492

based payments expense
Balance at 30 June 2022 55 600 3 620 572 - 27 700 642 ( 620 799) 30 756 015
Profit for the year - - - - 1 830 554 1 830 554
Dividends paid - - - - ( 1 967 152) ( 1 967 152)
Balance at 30 June 2023 55 600 3 620 572 - 27 700 642 ( 757 397) 30 619 417
*This reserve relates to the portion of share options attributable to the company under the share option scheme detailed
under note 24 of the Group financial statements.
The above Company statement of changes in equity should be read in conjuction with the accompanying notes.

COMPANY STATEMENT OF CASHFLOWS
2023 2022
USD USD
Cash generated from operations C10.1 1 679 481 1 634 898

interest expense ( 5 814) ( 1 918)
tax paid ( 41 756) ( 33 892)
Total cash generated from operating activities 1 671 880 1 637 426
Investing activities - -
Net cash flow before financing activities 1 671 880 1 637 426
Financing activities ( 1 715 124) ( 1 596 275)
dividends paid by holding company ( 1 715 124) ( 1 604 030)

issue of new shares - 7 755
repayment of borrowings - -
Net (decrease)/increase in cash and cash equivalents ( 43 245) 41 151
Cash and cash equivalents at the beginning of the year 43 526 2 375
Cash and cash equivalents at the end of the year 281 43 526
The above Company statement of cashflows should be read in conjuction with the accompanying notes.

CONTRIBUTIONS
NOTES TO THE COMPANY FINANCIAL STATEMENTS

C1) Operating expenses 2023 2022

USD USD
Directors fees 193 180 166 250

Audit fees and expenses 17 781 17 673
Financial reporting costs 28 737 8 757
Listing fees 139 374 175 565
Bank charges 8 187 407
Intermediated money transfer tax 19 880 21 337
Consulting and legal fees 14 514 23 166
Travelling and accomodation 20 974 11 157
Share register maintenance fees 33 262 12 420
Gifts and donations 9 594 1 732
485 483 438 464
C2) Financial income

Financial income comprises of dividend income received from
subsidiary companies. This income in eliminated in full on consolidation
of the Company accounts into the Group.
C3) Interest received
Interest on loans advanced to group companies 39 969 38 338
C4) Interest paid
Interest-bearing borrowings ( 5 814) ( 1 918)
C5) Tax expense
Witholding taxes paid ( 41 755) ( 33 893)
C6) Earnings per share

2023 2022
USD USD
Number of shares in issue
Number of ordinary shares in issue per basic and headline earnings per share 556 000 308 552 150 308
Effect of share options - 3 850 000
Weighted average number of ordinary shares in issue adjusted for the
effect of dilution 556 000 308 556 000 308
Reconciliation of basic earnings to headline earnings:

Headline earnings attributable to equity holders of the parent 1 830 554 1 743 682
Basic earnings per share (cents) 0.33 0.32

Headline earnings per share (cents) 0.33 0.32
Diluted basic earnings per share (cents) 0.33 0.31
Diluted headline earnings per share (cents) 0.33 0.31
C7) Investments in subsidiaries and joint ventures
66.67% equity shares in TV Sales & Home (Private) Limited

51% equity shares in Moregrow Enterprises (Private) Limited
50.01% equity shares in Distribution Group Africa (Private) Limited
100% equity shares in Axia Operations (Private) Limited
100% equity shares in Excalibur Mauritius Limited
50% equity shares in Celeste Products (Private) Ltd

NOTES TO THE COMPANY FINANCIAL STATEMENTS (cont’d)
C8) Trade and other receivables

2023 2022
USD USD
Prepayments - 2 132
Total third party receivables - 2 132
Amounts due from group companies

Axia Operations (Private) Limited - 435 943
Distribution Group Africa (Private) Limited 664 950 -
TV Sales & Home (Private) Limited 220 022 28 000
Moregrow Enterprises (Private) Limited 21 408 -
Exculibur (Private) Limited 115 000 -
Total amounts due from group companies 1 021 380 463 943
1 021 380 466 075
Amounts due from group companies are at arm’s length terms with no fixed repayment dates. However, these
receivables are usually settled within a period of 3 to 6 months. Outstanding balances attract interest at rates similar or
above to the company’s cost of borrowing.
C9) Other payables and accruals
Accruals 406 169 118 224

406 169 118 224
Amounts payable to group companies
Exculibur (Private) Limited 423 983 227 763
Axia Operations (Private) Limited 67 953 -
Geribran Services t/a Transerve (Private) Limited 176 540 -
668 476 227 763
Total other payables and accruals 1 074 645 345 987
C10) Cashflow information
C10.1 Cash generated from operations

Profit before interest and tax 1 838 155 1 741 155
Share based payments expense for the year - 33 492
Increase in trade and other receivables ( 555 303) ( 386 244)
Increase in other payables and accruals 396 629 246 495
1 679 481 1 634 898
C12 Financial risk management objectives and policies

The Company’s principal financial instruments comprise financial assets, sundry receivables, cash and cash equivalents,
interest-bearing borrowings and sundry payables. The main purpose of these financial instruments is to raise finance for
the Company’s operations or to achieve a return on surplus short-term funds.
The main risks arising from the Company’s financial instruments are interest rate risk, credit risk and liquidity risk.
The Board reviews and agrees policies for managing each of these risks and they are summarised below:
Interest rate risk

The Company’s exposure to the risk for changes in market interest rates relates primarily to variable short-term loan
and overdraft rates. The Company’s policy is to manage its interest cost by limiting exposure to short-term loans and
overdrafts and where borrowings are required, to borrow at favourable and fixed rates of interest. The company had no
exposure to interest rate risk as it had no borrowings.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or a customer contract,
leading to a financial loss.
Due to the nature of the operations of the Company, loans receivables of the Company which are subject to credit
risk are receivable from its subsidiary companies. This therefore reduces the Credit risk to very minimal levels since the
companies in question are controlled by the same people.
118
CONTRIBUTIONS

C12 Financial risk management objectives and policies (continued)
Credit risk (continued)
The maximum exposure arising from default equals the carrying amount of the financial assets as disclosed in the
statement of financial position less the market value of any security held.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out
market positions. At the end of the reporting period the company held a surplus of USD687 729 (2022: (USD499 230)).
The company’s management of liquidity risk improved from the prior year gap through rigorous management
processes of clearing the interest-bearing borrowings coupled
with improved collections from group companies.

30 June 2022 months months months Total
USD USD USD USD
Liabilities
Trade and other payables ( 345 987) - - ( 345 987)
Total ( 345 987) - - ( 345 987)
Assets
Cash and cash equivalents 43 526 - - 43 526
prepayments 466 076 - 466 076
Total 509 603 - - 509 603
Net liquidity surplus 163 616 - - 163 616

30 June 2023 months months months Total
USD USD USD USD
Liabilities
Trade and other payables ( 1 074 645) - - ( 1 074 645)
Total ( 1 074 645) - - ( 1 074 645)
Assets
Cash and cash equivalents 281 - - 281
prepayments 1 021 381 - - 1 021 381
Total 1 021 661 - - 1 021 661
Net liquidity surplus ( 52 984) - - ( 52 984)
C13 Fair value of financial instruments

The estimated net fair values of all financial instruments approximate the carrying amounts shown in the financial
statements as at the reporting date (30 June 2023).
C14 Capital management

The primary objective of the Company’s capital management is to ensure the company maintains healthy capital ratios
in order to support the business and maximise shareholder value.
The Company manages its capital (total equity and debt) and makes adjustment to it in light of changes in the
economic environment. To maintain or adjust the capital structure the Company may adjust the dividend payment
to shareholders, return on capital to shareholders, or issue new shares as well as reduce or increase debt levels. No
changes were made to the objectives, policies or processes during the year ended 30 June 2023.
The Company manages capital using debt to equity ratios, which is calculated as total borrrowings divided by the sum
of total equity and borrowings.
119
C14 Capital management (continued)
2023 2022
ZWL ZWL
Total borrowings - -
Cash and cash equivalents ( 281) ( 43 526)
Net Cash and cash equivalents ( 281) ( 43 526)
Equity 30 619 417 30 756 015
Gross Debt to equity ratio 0% 0%

Net debt to equity ratio 0% 0%
C15 Contingent liabilities
The Company did not have contingent liabilities as at year end.
C16 Events after reporting date

There have been no significant events after the reporting date.
120
CONTRIBUTIONS
121
GRI CONTENT INDEX
Omission
Page Part
GRI Standard Disclosure number(s) Omitted Reason Explanation
GRI 101: Foundation 2016
General Disclosures
GRI 102: General Organisational profile
Disclosures 2016 102-1 Name of the organisation Front Cover
102-2 Activities, brands, products, and services 4- 6
102-3 Location of headquarters 129
102-4 Location of operations 4- 5
102-5 Ownership and legal form 5
102-6 Markets served 6
102-7 Scale of the organisation 4, 9
102-8 Information on employees and other workers 9, 37- 41
102-9 Supply chain 44
102-10 Significant changes to the organisation and its 44
supply chain
102-11 Precautionary Principle or approach 24- 26
102-12 External initiatives 49
102-13 Membership of associations 7
Strategy
102-14 Statement from senior decision-maker 10- 15
Ethics and integrity
102-16 Values, principles, standards, and norms of IFC , 24
behaviour
Governance
102-18 Governance structure 17- 22
Stakeholder engagement
102-40 List of stakeholder groups 29
102-41 Collective bargaining agreements 39
102-42 Identifying and selecting stakeholders 29- 30
102-43 Approach to stakeholder engagement 28
102-44 Key topics and concerns raised 29- 30
Reporting practice
102-45 Entities included in the consolidated financial 4
statements
102-46 Defining report content and topic Boundaries 31- 33
102-47 List of material topics 32
102-48 Restatements of information IFC , 64
102-49 Changes in reporting
102-50 Reporting period IFC
102-51 Date of most recent report - 30 June 2022
102-52 Reporting cycle Annual
102-53 Contact point for questions regarding the IFC
report
102-54 Claims of reporting in accordance with the GRI IFC
Standards
102-55 GRI content index 122- 125
102-56 External assurance IFC
122
CONTRIBUTIONS
GRI CONTENT INDEX (cont’d)
Page Omission
number(s)
GRI Standard Disclosure Part
and/or Reason Explanation
URL(s) Omitted
Material Topics
200 series (Economic topics)
Economic Performance
GRI 103: 103-1 Explanation of the material topic and its IFC, 31- 33
Management Boundary
Approach 2016 103-2 The management approach and its components 50
103-3 Evaluation of the management approach 50
GRI 201: 201-1 Direct economic value generated and distributed 50, 59 –
Economic 120
Performance 201-3 Defined benefit plan obligations and other 40
2016 retirement plans
Indirect Economic Impacts
Management Boundary
GRI 203: Indirect 203-1 Infrastructure investments and services N/A
Economic supported
Impacts 2016
Procurement Practices
Management Boundary
GRI 204: 204-1 Proportion of spending on local suppliers 44
Procurement
Practices 2016
Tax
Management Boundary
GRI 207: Tax 207-1 Approach to Tax 50
2019 207-2Tax governance, control and risk management. -
207-3 Stakeholder engagement and management of 50
concerns related to tax.
207-4 Country -by country reporting 50
300 series (Environmental topics)
Energy
Management Boundary
GRI 302: Energy 302-1 Energy consumption within the organisation 43- 44
2016 302-2 Energy consumption outside of the organisation 43- 44
123
Page Omission
number(s)
URL(s) Omitted
Material Topics
Water
Management Boundary
GRI 303: Water 303-3 Water withdrawal 43
and Effluents
2018
Waste
Management Boundary
Waste 2020 306-3 Waste generated -
306-5 Waste directed to disposal -
400 series (Social topics)
Employment
Management Boundary
GRI 401: 401-1 New employee hires and employee turnover 37- 39
Employment
2016
Occupational Health and Safety
Management Boundary
GRI 403: 403-1 Occupational health and safety management 40
Occupational system
Health and
Safety 2018
Diversity and Equal Opportunity
Management Boundary
GRI 405: 405-1 Diversity of governance bodies and employees 19, 24
Diversity
and Equal
Opportunity
2016
124
CONTRIBUTIONS
Page Omission
number(s)
URL(s) Omitted
Material Topics
Freedom of Association and Collective Bargaining
Management Boundary
Human Rights
Assessment
Management Boundary
Approach 2016
103-2 The management approach and its components 24
125
SHAREHOLDERS’ANALYSIS AND CALENDAR
AS AT 30 JUNE2023
AXIA CORPORATION LIMITED: ANALYSIS BY INDUSTRY AS AT : 30-June-2023
Industry Shares Shares % Shareholders Shareholders %

LOCAL COMPANIES 339 901 975 61,13 571 12,16
LOCAL NOMINEE 87 501 100 15,74 212 4,52
PENSION FUNDS 57 032 107 10,26 137 2,92
FUND MANAGERS 20 876 577 3,75 82 1,75
LOCAL INDIVIDUAL RESIDENT 19 438 968 3,50 3 239 68,99
FOREIGN COMPANIES 11 606 548 2,09 06 0,13
CHARITABLE 8 880 180 1,60 34 0,72
TRUSTS 5 162 014 0,93 116 2,47
FOREIGN NOMINEE 1 752 776 0,32 05 0,11
INSURANCE COMPANIES 1 719 793 0,31 29 0,62
BANKS 1 150 141 0,21 06 0,13
OTHER INVESTMENTS & TRUST 592 765 0,11 103 2,19
NEW NON RESIDENT 202 601 0,04 80 1,70
DECEASED ESTATES 119 854 0,02 67 1,43
FOREIGN INDIVIDUAL RESIDENT 42 909 0,01 07 0,15
GOVERNMENT / QUASI 20 000 0,00 01 0,02
Totals 556 000 308 100,00 4 695 100,00
AXIA CORPORATION LIMITED: ANALYSIS BY VOLUME AS AT : 30-June-2023
Range Shares Shares % Shareholders Shareholders %

1-5000 2 564 124 0,46 3 737 79,60
5001-10000 1 502 966 0,27 205 4,37
10001-25000 3 251 768 0,58 198 4,22
25001-50000 4 919 298 0,88 137 2,92
50001-100000 8 507 377 1,53 119 2,53
100001-200000 11 511 854 2,07 81 1,73
200001-500000 31 952 733 5,75 100 2,13
500001-1000000 34 316 098 6,17 48 1,02
1000001 and Above 457 474 090 82,28 70 1,49
Totals 556 000 308 100,00 4 695 100,00
AXIA CORPORATION LIMITED TOP 20 : SCHEDULE AS AT : 30-June-2023
Rank Names Country Industry Shares Percentage

1 Z.M.D INVESTMENTS (PVT) LTD ZIM LC 107 468 922 19,33
2 H M BARBOUR (PVT) LTD ZIM LC 100 024 000 17,99
3 STANBIC NOMINEES (PVT) LTD ZIM LN 66 877 215 12,03
4 OLD MUTUAL LIFE ASS CO ZIM LTD ZIM LC 52 844 754 9,50
5 SARCOR INVESTMENTS (PVT) LTD ZIM LC 22 484 058 4,04
6 SCB NOMINEES 033663900002 ZIM LN 18 751 660 3,37
7 PHARAOH LIMITED BVG FC 11 436 016 2,06
8 MINING INDUSTRY PENSION FUND ZIM PF 8 238 931 1,48
9 MUSIC VENTURES (PVT ) LTD ZIM LC 7 465 382 1,34
10 CITY AND GENERAL HOLDINGS P/L ZIM LC 6 822 598 1,23
Selected Shares 402 413 536 72,38
Non - Selected Shares 153 586 772 27,62
Issued Shares 556 000 308 100,00
Shareholders’ Calendar Reporting and Meeting Dates
Eigth Annual General Meeting 21 November 2023 3 months to 30 September 2023 November 2023
Financial Year End 30 June 6 months to 31 December 2023 March 2024
9 months to 31 March 2024 May 2024
12 months to 30 June 2024 September 2024
Annual report published November 2024
Nineth Annual General Meeting November 2024
126
CONTRIBUTIONS
NOTICE TO MEMBERS
NOTICE IS HEREBY GIVEN that the Eighth Annual General Meeting of members will be held on 21 November 2023 at
08h15 at the Royal Harare Golf Club Building, Harare, for the purpose of transacting the following business: -
Ordinary Business
1. To receive and consider the financial statements for the year ended 30 June 2023 together with the report of
the Directors and Auditors thereon.
2. To re-elect the retiring Director, Mrs. Thembiwe Mazingi who retires by rotation and being eligible offers herself
for re-election.
Thembi is a partner in a legal firm, Coghlan, Welsh & Guest, a position she has held since 1989, having joined the
firm in 1982. She is a specialist in International tax law, corporate law, compliance and governance. She currently
sits on the boards of Ariston Holdings Limited and African Century Limited.
3. To re-elect the retiring Director, Mr. Themba Sibanda, who retires by rotation and being eligible, offers himself
for re-election.
Themba is a Chartered Accountant who has worked in compliance, audit and advisory for the past 42 years.
He is the principal at Schmulian & Sibanda Chartered Accountants (Zimbabwe) and sits on various boards of
Stock Exchange listed entities such as Padenga Holdings Limited (Chairman of the Board), Edgars Stores Limited
(Chairman of the Board) and PPC Zimbabwe Limited.
4. To approve Director’s fees for the year ended 30 June 2023.
Note
The full report on Director’s Remuneration shall be available for inspection at the registered address of the Company.
5. To approve the remuneration of the Auditors for the year ended 30 June 2023 and to re-appoint BDO Chartered
Accountants of Harare as Auditors of the Company until the conclusion of the next Annual General Meeting.
This is BDO’s second year as independent auditors of the Company.
Special Business
6. Approval of Share Buy-Back
To approve as a special resolution, with or without amendments:

“That the members authorize in advance, in terms of section 128 of the Companies and Other Business Entities
Act (Chapter 24:31) and the Victoria Falls Stock Exchange (VFEX) Listing Requirements, the purchase by the
Company of its own shares upon such terms and conditions and such amounts as the Directors of the Company
may from time to time determine and such authority hereby specifies that: -
i) The authority in terms of this resolution shall expire on the date of the Company’s next Annual General
Meeting; and
ii) Acquisitions shall be of ordinary shares which, in aggregate in any one financial year, shall not exceed
10% (ten per centum) of the Company’s issued ordinary share capital; and
iii) The maximum and minimum prices, respectively, at which such ordinary shares may be acquired will
not be more than 5% (five per centum) above and 5% (five per centum) below the weighted average of
the market price at which such ordinary shares are traded on the VFEX, as determined over the 5 (five)
business days immediately preceding the date of purchase of such ordinary shares by the Company;
and
iv) A press announcement will be published as soon as the Company has acquired ordinary shares
constituting, on a cumulative basis in the period between Annual General Meetings, 3% (three per
centum) of the number of ordinary shares in issue prior to the acquisition; and
v) If during the subsistence of this resolution the Company is unable to declare and pay a cash dividend,
then this resolution shall be of no force and effect.”
NOTE: -
In terms of this resolution, the Directors are seeking authority to allow the use of the Company’s available cash resources to
purchase its own shares in the market in terms of the Companies and Other Business Entities Act and the regulations of the
VFEX. The Directors will only exercise the authority if they believe that to do so would be in the best interest of the shareholders
generally. In exercising this authority, the Directors will duly take into account following such repurchase, the ability of the
Company to pay its debts in the ordinary course of business, the maintenance of an excess of assets over liabilities, and for the
Company and Group, the adequacy of ordinary capital and reserves as well as working capital.
127
NOTICE TO MEMBERS (cont’d)
7. Loans to Executive Directors
To approve as an ordinary resolution, with or without amendments: “That the Company be and is hereby
authorized to make any loan to any Executive Director or to enter into any guarantee or provide any security in
connection with a loan to such Executive Director for the purpose of enabling him to properly perform his duty
as an officer of the Company, as may be determined by the Remuneration Committee of the Board of Directors,
provided that the amount of the loan or the extent of the guarantee or security shall not exceed the annual
remuneration of that Director.”
Any other business
8. To transact any other business competent to be dealt with at the Annual General Meeting.
Proxies
In terms of the Companies and Other Business Entities Act, a Member entitled to attend and vote at a meeting is entitled
to appoint a proxy to attend and vote on a poll and speak in his or her stead. No Director or Officer of the company may be
appointed as a proxy for a Member. A proxy need not be a member of the Company.
Proxy forms must be forwarded to reach the Company’s registered office not less than 48 (forty-eight) hours before the
commencement of the meeting.
By order of the Board

Company Secretary
Harare
1 November 2023
128
CONTRIBUTIONS
CORPORATE INFORMATION
Domicile
The Company is incorporated and domiciled in Zimbabwe.
Core Business
Speciality Retail and Distribution.
Registered Office
Edward Building,
1st Street/Nelson Mandela Avenue,
Harare, Zimbabwe
Postal Address
6 Kenilworth Road
Newlands
Harare, Zimbabwe
Contact Details
Telephone: +263 (24) 2776998/2776273
Email: finance@axiaops.com
Company Secretary
5 Dromore Road Highlands
Harare, Zimbabwe
Independent Auditors
BDO Zimbabwe Chartered Accountants
Kudenga House 3 Baines Avenue
Harare, Zimbabwe
Principal Bankers
CABS
FBC Bank Limited
Stanbic Bank Zimbabwe Limited
Ecobank Zimbabwe Limited
First Capital Bank Limited
Standard Chartered Bank Zimbabwe Limited
People’s Own Savings Bank Limited
NMB Bank Limited
Legal Advisors
Lunga Attorneys
Registrars and Transfer Secretaries

Corpserve Transfer Secretaries
(Private) Limited,
2nd floor, ZB Centre,
1st Street/Kwame Nkrumah Avenue,
Harare, Zimbabwe
Email: https://escrowagm.com/eagmZim/Login.aspx
Sustainability Advisors
Institute for Sustainability Africa,
65 Whitwell Road Borrowdale West
Harare, Zimbabwe
Email: admin@insafrica.org.zw
129
130
PROXY FORM
I/We ________________________________________________________ of ____________________________________________________________
being a member of the above Company and entitled to vote, hereby appoint ______________________________________________________________
of ______________________________________________________ or failing him, _______________________________________________________
of ________________________________________________________________________________________________________________________
as my/our Proxy to vote for me/us on my/our behalf at the Eighth Annual General Meeting of Axia Corporation Limited to be held on Tuesday, 21 November
2023 at 8:15 hours and at any adjournment thereof for the following purposes:-
Item on the Agenda for the AGM For Against Abstain

ORDINARY BUSINESS
1. To receive and consider the financial statements for the year ended 30 June 2023 together with the report of the
Directors and Auditors
thereon..
2. To re-elect the retiring Director, Mrs. Thembiwe Mazingi who retires

by rotation and being eligible offers herself for re-election.
Thembi is a partner in a legal firm, Coghlan, Welsh & Guest, a position she has held since 1989, having joined the
firm in 1982.
She is a specialist in International tax law, corporate law, compliance and governance. She currently sits on the
boards of Ariston Holdings Limited and African Century Limited.
3. To re-elect the retiring Director, Mr. Themba Sibanda, who retires by rotation and being eligible, offers himself for
re-election.
Themba is a Chartered Accountant who has worked in compliance, audit and advisory for the past 42 years.
He is the principal at Schmulian & Sibanda Chartered Accountants (Zimbabwe) and sits on various boards of
Stock Exchange listed entities such as Padenga Holdings Limited (Chairman of the Board), Edgars Stores Limited
(Chairman of the Board) and PPC Zimbabwe Limited.
4. To approve Director’s fees for the year ended 30 June 2023.
Note
The full report on Director’s Remuneration shall be available for inspection at the registered address of the Company.
5. To approve the remuneration of the Auditors for the year ended 30 June 2023 and to re-appoint BDO Chartered
Accountants of Harare as Auditors of the Company until the conclusion of the next Annual General Meeting. This is
BDO’s second year as independent auditors of the Company.
Special Business
6. Approval of Share Buy-Back
To approve as a special resolution, with or without amendments:

“That the members authorize in advance, in terms of section 128 of the Companies and Other Business Entities Act
(Chapter 24:31) and the Victoria Falls Stock Exchange (VFEX) Listing Requirements, the purchase by the Company
of its own shares upon such terms and conditions and such amounts as the Directors of the Company may from
time to time determine and such authority hereby specifies that: -
i) The authority in terms of this resolution shall expire on the date of the Company’s next Annual General
Meeting; and
ii) Acquisitions shall be of ordinary shares which, in aggregate in any one financial year, shall not exceed 10% (ten
per centum) of the Company’s issued ordinary share capital; and
iii) The maximum and minimum prices, respectively, at which such ordinary shares may be acquired will not be
more than 5% (five per centum) above and 5% (five per centum) below the weighted average of the market
price at which such ordinary shares are traded on the VFEX, as determined over the 5 (five) business days
immediately preceding the date of purchase of such ordinary shares by the Company; and
iv) A press announcement will be published as soon as the Company has acquired ordinary shares constituting,
on a cumulative basis in the period between Annual General Meetings, 3% (three per centum) of the number
of ordinary shares in issue prior to the acquisition; and
v) If during the subsistence of this resolution the Company is unable to declare and pay a cash dividend, then this
resolution shall be of no force and effect.”
NOTE: -
In terms of this resolution, the Directors are seeking authority to allow the use of the Company’s available cash
resources to purchase its own shares in the market in terms of the Companies and Other Business Entities Act and
the regulations of the VFEX. The Directors will only exercise the authority if
they believe that to do so would be in the best interest of the shareholders generally. In exercising this authority, the
Directors will duly take into account following such repurchase, the ability of the Company to pay its debts in the
ordinary course of business, the maintenance of an excess of assets over liabilities, and for the Company and Group,
the adequacy of ordinary capital and reserves as well as working capital.

PROXY FORM (cont’d)
7. Loans to Executive Directors
To approve as an ordinary resolution, with or without amendments:

“That the Company be and is hereby authorized to make any loan to any Executive Director or to enter into any
guarantee or provide any security in connection with a loan to such Executive Director for the purpose of enabling
him to properly perform his duty as an officer of the Company, as may be determined by the Remuneration
Committee of the Board of Directors, provided that the amount of the loan or the extent of the guarantee or
security shall not exceed the annual remuneration of that Director.”
8. Any other business
To transact any other business competent to be dealt with at the Annual General Meeting.
Signed at ____________________________ this _________________________________ Day of __________________________________ 2023.
Signature of Member ___________________________________________________________________________________________________
NOTES
1. Unless otherwise instructed, the proxy will vote as he thinks fit.
2. This proxy form must be signed, dated and returned so as to reach the Company no later than forty-eight hours
before the Meeting.
NOTE 1:
In terms of the Companies and Other Business Entities Act [Chapter 24:31], a member of the Company is entitled to appoint one or more proxies to
attend, vote and speak in his or her stead. A proxy need not be a member of the Company. Proxy forms must be deposited at the registered office of
the Company not less than forty-eight (48) hours before the time appointed for holding the meeting.
NOTE 2: ELECTRONIC ANNUAL REPORT

The Company’s 2023 Annual Report will be made available on the Company’s website http:.http://www.axiacorpltd.com/ Electronic copies of the
Annual Report will also be emailed to those shareholders whose e-mail addresses are on record.
The Company Secretary

Axia Corporation Limited
6 Kenilworth Road
Newlands
Harare
Zimbabwe

CHANGE OF ADDRESS FORM
The attention of shareholders is drawn to the necessity of keeping the transfer secretaries advised of any change in name and/or address.
Shareholder’s name in full ______________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
New address ________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
Shareholder’s signature ________________________________________________________________________________________

The Company Secretary
Axia Corporation Limited
6 Kenilworth Road
Newlands
Harare
Zimbabwe

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Vision Mission Statement Values

ABOUT THIS REPORT RESTATEMENTS

Human Rights 24 Certificate of Compliance by the Company Secretary 54

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 1

Axia Corporation Limited at a Glance

1 April 17 May 2018 2020 2022 2023

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 3

Group Structure and Activities

TV SALES & HOME DISTRIBUTION

TV Sales & Home 53* DISTRIBUTION GROUP AFRICA

* The number in front of a brand represents the total outlets MALAWI

4 AXIA CORPORATION LIMITED | ANNUAL REPORT 2023

(Listed on the Victoria Falls Stock Exchange)

66.67% 50.01% 100% 50% 100%

Innscor Distribution Moregrow

100% 100% DGA Zambia 49%

100% DGA Malawi

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 5

6 AXIA CORPORATION LIMITED | ANNUAL REPORT 2023

BUSINESS ASSOCIATION MEMBERSHIPS AND AWARDS

Business Association Memberships

• Retailers Association of Zimbabwe

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 7

8 AXIA CORPORATION LIMITED | ANNUAL REPORT 2023

Final Divided ‘US cents’

Total Assets ‘USD’ Total Equity ‘USD’

Employees ‘Head count’

Recordable work-related injuries ‘Count’

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 9

10 AXIA CORPORATION LIMITED | ANNUAL REPORT 2023

CHAIRMAN’S STATEMENT AND REVIEW OF OPERATIONS (cont’d)

OPERATING ENVIRONMENT AND OVERVIEW

The operating environment was characterized by a surge

The stance taken by both fiscal and monetary authorities

In Zambia, consumer spending was under pressure throughout

Malawi has consistently run a current account deficit through

The Group reported revenue of US$203.8 million during the

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 11

As part of its commitment to ensuring the sustainability

12 AXIA CORPORATION LIMITED | ANNUAL REPORT 2023

CHAIRMAN’S STATEMENT AND REVIEW OF OPERATIONS (cont’d)

raw material supply gaps attributed to delays on auction

Legend Lounge is a lounge suite manufacturing business

Distribution Group Africa (DGA)- Zimbabwe

The business remains poised to exploit growth opportunities

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 13

The Board has

14 AXIA CORPORATION LIMITED | ANNUAL REPORT 2023

CHAIRMAN’S STATEMENT AND REVIEW OF OPERATIONS (cont’d)

The Board has also declared a final dividend of US$25,000 to L E M NGWERUME

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 15

16 AXIA CORPORATION LIMITED | ANNUAL REPORT 2023

Luke Ngwerume Ray Rambanapasi

Qualifications: MBA (UCT) Qualifications: Chartered Accountant, MBA (UCT)

Other Commitments: * appointed on the 1st of January 2023,

Thembinkosi (Themba ) Sibanda

Qualifications: Chartered Accountant

Key Skills: Taxation, Corporate Finance, FMCG, Manufacturing,

AXIA CORPORATION LIMITED | ANNUAL REPORT 2023 17