Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 22. INVESTMENT PROPERTIES GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m At 1 October 1,216.5 1,039.2 33.5 33.5 Additions - 187.2 - - Fair value gain - 29.6 - - Disposal - (17.2) (33.5) - Transfer (note 23) - (22.3) - - Distribution of disposal group (note 35) (1,216.5) - - - At 30 September - 1,216.5 - 33.5 The Group’s and Company’s investment properties at 30 September 2018 were accounted at their fair value based on a valuation done by JPW International Property Consultants and Gexim Real Estate Ltd, two independent chartered valuers. The different valuation methods used are: (i) Direct Market Comparison Approach or Sales Comparison Approach (ii) Depreciated Replacement Cost Approach. Details of the Group and Company’s investment properties, which are classified as level 3 on the fair value hierarchy, are as follows: GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m Land - 782.3 - - Buildings - 434.2 - 33.5 - 1,216.5 - 33.5 Significant unobservable valuation input: Range Sep-18 Land - Price per Square Metre 2,000 - 55,000 Buildings - Price per Square Metre 8,000 - 85,000 Significant increases/(decreases) in estimated price per square metre in isolation would result in a proportionate higher/(lower) fair value. The following have been recognised in profit or loss: GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m Rental income - 99.4 - - Direct operating expenses arising from investment properties that generate rental income - 22.7 - - Direct operating expenses that did not generate rental income - 9.3 - - CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 130