CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 40. BUSINESS SEGMENTS (CONT’D) Finance Property Investments Group elimination Discontinued operations Total MUR m MUR m MUR m MUR m MUR m MUR m Year ended 30 September 2017 Gross operating income 1,670.9 193.5 313.5 (244.1) - 1,933.8 Interest expense (347.6) (15.9) (107.4) 118.8 - (352.1) Net operating income 1,323.3 177.6 206.1 (125.3) - 1,581.7 Operating expenses (716.3) (65.9) (217.5) 125.3 - (874.4) Operating profit before impairment 607.0 111.7 (11.4) - - 707.3 Net impairment of financial assets (186.3) - (0.6) - - (186.9) Operating profit 420.7 111.7 (12.0) - - 520.4 Foreign exchange gain/(loss) 7.9 (0.1) (124.8) - - (117.0) Share of profit of associates - - (5.6) - - (5.6) 428.6 111.6 (142.4) - - 397.8 Income tax (expense)/credit - - 13.7 - - 13.7 Profit/(loss) before tax 428.6 111.6 (128.7) - - 411.5 Income tax expense (79.5) (20.3) (7.5) - - (107.3) Profit/(loss) for the year from continuing operations 349.1 91.3 (136.2) - - 304.2 Profit for the year from discontinued operations - - - - 2,645.4 2,645.4 Profit for the year 349.1 91.3 (136.2) - 2,645.4 2,949.6 Assets 10,527.3 2,281.7 5,419.2 (2,860.2) - 15,368.0 Liabilities 9,156.1 397.6 1,915.3 (2,860.2) - 8,608.8 Capital expenditure 75.4 90.6 6.3 - - 172.3 Investments in associates - - 193.1 - - 193.1 Depreciation & amortisation 69.0 6.9 7.9 - - 83.8 For management purposes, the Group is organised into four business segments based on the products and services as follows: Finance - consumer credit, leasing, card acquiring and issuing, factoring, deposit taking and foreign exchange dealing. Property - Property management and rentals Investments - import and distribution of consumer electronics and household appliances, IT related services, strategy monitoring, support to SBUs, performance monitoring and statutory reporting. Global Business - Corporate administration, fund administration, tax structuring, trusts, corporate secretarial services and compliance outsourcing. This segment was sold during the previous year. No operating segments have been aggregated to form the above reportable operating segments During the year ended 30 September 2017, the Group disposed of its Global Business Segment and has therefore disclosed this segment as discontinued operations. Transfer prices between operating segments are based on the Group’s pricing framework. The Group’s activities are carried out principally from companies based in Mauritius. 41. IMMEDIATE AND ULTIMATE HOLDING COMPANY The immediate holding and ultimate holding companies of CIM Financial Services Ltd are Cim Holdings Ltd and Elgin Ltd respectively. Both companies are incorporated in Mauritius. 134 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018