CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 35. DISCONTINUED OPERATIONS AND DISPOSAL OF SUBSIDIARIES On 31 st May 2017, the board of CIM Financial Services Ltd approved the disposal of the whole of its interest in the Global Business segment to SGG Ltd, for a consideration of MUR 3.2bn. The Global Business segment was thus considered as discontinued operations. The results of the segment disposed are as follows: Sep-17 MUR m Revenue 516.0 Expenses (300.7) Operating income 215.3 Finance costs (1.6) Impairment loss (1.8) Profit before tax 211.9 Income tax expense (30.6) Profit after tax 181.3 Profit on disposal of subsidiaries 2,464.1 Profit after tax for the year from discontinued operations 2,645.4 Basic/diluted earnings per share from discontinued operations 3.9 Sep-17 Analysis of assets and liabilities disposed MUR m Assets Property, plant and equipment 31.9 Intangible assets 594.5 Deferred tax asset 1.4 Cash and cash equivalent 141.0 Other assets 330.3 1,099.1 Liabilities Post employment benefit (7.4) Other borrowed funds (27.1) Other liabilities (366.0) Income tax liabilities (11.0) (411.5) Net assets disposed 687.6 Gain on disposal of subsidiaries Consideration received in cash and cash equivalents 3,044.5 Deferred consideration 175.3 Direct transaction costs (70.4) Carrying value of net assets disposed (687.6) 2,461.8 Foreign exchange translation reserve transferred to profit or loss on disposal 2.3 Gain on disposal of subsidiaries 2,464.1 Net cash flow on disposal of subsidiaries Consideration received in cash and cash equivalents 2,974.1 Carrying value of cash and cash equivalent disposed (141.0) 2,833.1 The net cash flows arising on the discontinued operations are as follows: Sep-17 MUR m Operating 213.4 Investing (108.5) Financing (0.1) Net cash inflow 104.8 129 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018