CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 35. DISCONTINUED OPERATIONS AND DISPOSAL OF SUBSIDIARIES (CONT’D) Disposal of subsidiaries Year ended 30 September 2017 Group Company Gain on disposal of subsidiaries MUR MUR Cim Global Reinsurance Company Ltd and Cim Captive Reinsurance Company PCC (i)) 13.7 (2.2) Cybernaptics Ltd (ii) - 3.0 Subsidiaries under Global Business segment (iii) - 2,494.1 13.7 2,494.9 (i) Cim Global Reinsurance Company Ltd and Cim Captive Reinsurance Company PCC were wound up during the year. These subsidiaries’ functional currency were USD and the foreign currency translation reserve balance at the date of winding up were recycled to profit or loss in the Group’s financial statements as gain/(loss) on disposal of subsidiaries. (ii) The Group also disposed of its subsidiary Cybernaptics Ltd on 1 October 2016 for a consideration of MUR 10.8m which represented the net assets of the subsidiary at the date of disposal. MUR m Proceeds from disposal of subsidiary 10.8 Net assets disposed (10.8) - Analysis of assets and liabilities disposed Cash and cash equivalents 3.7 Property, plant and equipment 6.0 Intangible assets 5.4 Inventories 3.7 Other assets 7.4 Other borrowed funds (6.8) Current tax liabilities (0.3) Post employment benefit (0.4) Other liabilities (7.9) Net assets disposed 10.8 Net cash flow on disposal of subsidiaries Consideration received in cash and cash equivalents 10.8 Carrying value of cash and cash equivalent disposed (3.7) 7.1 (iii) The Company disposed of its investments in subsidiaries with carrying amount of MUR 655.2m relating to the Global Business segment (note 36 (a)) for a net consideration of MUR 3,149.3m. This resulted in a recognition of a gain on disposal of MUR 2,494.1m. 130 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018