CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 26. DEFERRED TAXATION Deferred income tax is calculated on all temporary differences under the liability method at 17% (2017: 17%). There is a legally enforceable right to offset current tax assets against current tax liabilities and deferred income tax assets and liabilities when the deferred income taxes relate to the same fiscal authority. The following amounts are shown in the Statement of Financial Position: GROUP COMPANY Sep-18 Sep-17 Sep-18 Sep-17 MUR m MUR m MUR m MUR m Deferred tax assets 83.0 65.2 - - Deferred tax liabilities (28.4) (25.3) - - 54.6 39.9 - - At the end of the reporting period, the Group and the Company had unused tax losses of MUR 72.4m (2017: MUR 37.8m) and MUR 19.3m (2017: MUR (3.9)m) respectively available for offset against future profit. The expiry of the Group’s tax losses are MUR 5.2m in 2019, MUR 16.5m in 2020, MUR 7.4m in 2021, MUR 16.9m in 2022, and MUR 26.4m in 2023. The expiry of the Company’s tax losses are MUR 1.8m in 2019, MUR 10.1m in 2020 and MUR 7.4m in 2023. No deferred tax asset has been recognised due to unpredictability of taxable future profit streams. Deferred tax assets/(liabilities) GROUP Impairment allowance Post employment benefit Fair Value Gains and Others Accelerated tax depreciation Total At 1 October 2016 65.3 5.7 (2.8) (18.8) 49.4 Credit/(charge) to profit or loss 7.4 (7.2) (7.5) 2.6 (4.7) Charge to other comprehensive income - (0.4) (3.0) - (3.4) Disposal of subsidiaries (3.5) 0.6 - 1.5 (1.4) At 30 September 2017 69.2 (1.3) (13.3) (14.7) 39.9 Credit/(charge) to profit or loss 17.2 7.2 (5.6) (1.7) 17.1 Charge to comprehensive income - (3.1) - - (3.1) Acquisition of subsidiary - - - 0.7 0.7 At 30 September 2018 86.4 2.8 (18.9) (15.7) 54.6 Deferred tax assets/(liabilities) COMPANY Impairment allowance Post employment benefit Fair Value Gains and Others Accelerated tax depreciation Total At 1 October 2016 - - (0.5) - (0.5) Credit to profit or loss - - 0.5 - 0.5 At 30 September 2017 - - - - - Credit to profit or loss - - - - - At 30 September 2018 - - - - - 122 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018