Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 23. PROPERTY, PLANT AND EQUIPMENT (CONT’D) (b) The Group’s land and buildings were accounted at their fair value based on a valuation done during the year 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’s land and buildings measured at fair value and information about the fair value hierarchy as at 30 September are as follows: Sep-19 Sep-18 MUR m MUR m Level 3 Level 3 Land - 980.7 Buildings - 78.9 - 1,059.6 The fair value of land was derived using the Sales Comparison Approach. Sales prices of comparable land in close proximity are adjusted for differences in key attributes such as property size, access, topography and other stringent adverse physical conditions. The fair value of the buildings was determined using the depreciated replacement cost approach. The most significant input into these valuation approaches are price per square metre. Significant unobservable valuation input: Sep-18 Range Land - Price per Square Metre MUR 30 - MUR 55,000 Buildings - Price per Square Metre MUR 8,000 - MUR 70,000 Significant increases/(decreases) in estimated price per square metre in isolation would result in a proportionate higher/(lower) fair value. (c) Land & Buildings Sep-19 Sep-18 MUR m MUR m Freehold land & buildings - 1,059.6 On the cost basis, these properties would have been as follows: Cost - 840.5 Accumulated Depreciation - (11.5) Net book value - 829.0 CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 132