CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 22. INVESTMENT PROPERTIES GROUP COMPANY Sep-18 Sep-17 Sep-18 Sep-17 MUR m MUR m MUR m MUR m At 1 October 1,039.2 733.7 33.5 30.8 Additions 187.2 38.1 - - Fair value gain (note 7) 29.6 48.2 - 2.7 Disposal (17.2) (1.5) - - Transfer (note 23) (22.3) 220.7 - - At 30 September 1,216.5 1,039.2 33.5 33.5 The Group’s and Company’s investment properties are accounted at their fair value based on a valuation done during the year by JPW International Property Consultants and Gexim Real Estate Ltd, two independent chartered valuers. The different valuation methods used are: (i) Direct Market Comparison Approach or Sales Comparison Approach (ii) Depreciated Replacement Cost Approach. Details of the Group and Company’s investment properties, which are classified as level 3 on the fair value hierarchy, are as follows: GROUP COMPANY Sep-18 Sep-17 Sep-18 Sep-17 MUR m MUR m MUR m MUR m Land 782.3 596.2 - - Buildings 434.2 443.0 33.5 33.5 1,216.5 1,039.2 33.5 33.5 Significant unobservable valuation input: Range Land - Price per Square Metre 2,000 - 55,000 Buildings - Price per Square Metre 8,000 - 85,000 Significant increases/(decreases) in estimated price per square metre in isolation would result in a proportionate higher/(lower) fair value. The following have been recognised in profit or loss: GROUP COMPANY Sep-18 Sep-17 Sep-18 Sep-17 MUR m MUR m MUR m MUR m Rental income 99.4 75.2 - - Direct operating expenses arising from investment properties that generate rental income 22.7 19.7 - - Direct operating expenses that did not generate rental income 9.3 9.5 - - 110 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018