VaMlo Empire Ltd was established in 20.3 and their main business is to take tourists on shark cage diving expeditions in Kempton Oceans. VaMlo Empire Ltd has several investments as indicated below:

Charlse Mosehla Ltd On 1 March 20.10 VaMlo Empire Ltd acquired 60% of the issued share capital of Charlse Mosehla Ltd, a company that is in the industry of arranging whale watching expeditions in the Hermanus area. One voting right is attached to each share. The remaining 40% of the issued share capital is owned by Mr. Moses, the managing director of the company. Mr. Moses is a meteorologist and an expert in predicting weather patterns. According to a contractual agreement, Mr. Moses has rights to refuse the boats of Charlse Mosehla Ltd to go out onto the sea when he expects severe weather conditions that may damage the boats and/or place the lives of the crew and tourists in danger. VaMlo Empire Ltd has the rights to make all other decisions regarding operating activities

Karabo Ltd VaMlo Empire Ltd acquired 50% of the issued share capital of Karabo Ltd on 1 September 20.12, a company situated in Boksburg. Karabo Ltd organizes dolphin watching expeditions on the North Coast. One voting right is attached to each share. Mrs. Gugu, a retired widow, acquired the remaining 50% interest. Mrs. Gugu lives in Japan along with her children and rarely visits South Africa and Karabo Ltd. Mrs. Gugu has the rights to make decisions regarding the investment of surplus funds. VaMlo Empire Ltd has the right to make decisions regarding the purchase and disposal of boats, organizing expeditions and appointing staff.

Zanele Ltd On 1 November 20.12, a new company was formed in Kempton Oceans, namely Zanele Ltd, which rents out charter boats. Hundred percent (100%) of the issued share capital is held by Mrs. Sheila, a local businesswoman in the Kempton Oceans area. In terms of a contractual agreement, Zanele Ltd must have boats available for VaMlo Empire Ltd at any given period. VaMlo Empire Ltd also has the right to determine the accounting policies and to appoint the directors in terms of the contractual agreement. The customers of Zanele Ltd other than VaMlo Empire Ltd contribute an exceedingly small fraction of the revenue. Mr. Trinity has the rights to decide which suppliers are used for the purchase of boats.

Discuss, with reasons, whether each of the companies indicated above is a subsidiary of VaMlo Empire Ltd for the year ended 31 December 20.12. Your answer should address: (a) Charlse Mosehla Ltd (b) Karabo Ltd (c) Zanele Ltd

Your answer must comply with International Financial Reporting Standards (IFRS).