CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 36. COMMITMENTS GROUP Sep-18 Sep-17 MUR m MUR m Operating lease - where the Group is the lessor The Group has entered into Operating leases for motor vehicle, equipment and investment properties consisting of buildings for rental. These leases have terms ranging from 1 to 10 years. The future minimum lease receivable under operating leases are as follows: Within one year 220.8 115.8 After one year and before five years 482.4 235.2 Later than 5 years 114.8 4.9 818.0 355.9 37. EVENTS AFTER THE REPORTING DATE (a) In May 2018, the Board of CIM Financial Services Ltd deliberated and resolved the spinning off of the property segment of the Group to the shareholders of the Company with the eventual listing on the Development and and Enterprise Market (DEM) of the Stock Exchange of Mauritius subject to the approval obtained from the authority. In view of that, the Group embarked on the project of restructuring all the entities of the property segment under a single holding company which is Lavastone Ltd (previously known as CIM Property Development Ltd). The implementation of the restructuring plan was dependent upon the approval of the relevant authority which was not yet obtained at the reporting date. Further to the approval received from the relevant authority on 15 October 2018, the Group proceeded with the restructuring of the property segment in view of the eventual distribution and listing of the shares of Lavastone Ltd. All the entities under the property segment, as disclosed in Note 20, have been restructured under Lavastone Ltd and shares were issued by Lavastone Ltd for the share application monies of MUR 575.0m (Note 18) held at the reporting date. In addition, further investments of MUR 203.5m were made by the Company in Lavastone Ltd. On 14 December 2018, the approval of the listing by the Executive Committee of the Stock Exchange of Mauritius was received for the listing of Lavastone Ltd and the Admission Document of Lavastone Ltd on the Development and Enterprise Market of the Stock Exchange of Mauritius was released. On that date, CIM Financial Services Ltd declared a dividend in specie of all the shares it held as investment in Lavastone Ltd. The carrying amount of the investment in Lavastone Ltd at the date of distribution amounted to MUR 1,721.1m. (b) On 7 December 2018, the Board of Directors of CIM Financial Services Ltd (the ‘Company’) has declared a final dividend of MUR 0.15 per share payable for the year ended 30 September 2018, in respect of all the ordinary shares of the Company. As the dividend was declared subsequent to the reporting date, it has not been recognised in the Statement of Financial Position at 30 September 2018. 38. CONTINGENT LIABILITIES GROUP & COMPANY Sep-18 Sep-17 MUR m MUR m Corporate guarantees on behalf of subsidiary 20.0 20.0 20.0 20.0 At 30 September 2018, the Company had contingent liabilities in respect of guarantees from which it is anticipated that no material liabilities would arise. The Company has given corporate guarantees amounting to MUR 20m (2017: MUR 20m) on behalf of one subsidiary company. 131 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018