Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 35. DISCONTINUED OPERATIONS AND DISTRIBUTION OF DISPOSAL GROUP TO OWNERS The Board of CIM Financial Services Ltd had 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 Enterprise Market (DEM) of the Stock Exchange of Mauritius. 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). In December 2018, the Group proceeded with the restructuring of the property segment whereby all the entities under the property segment were restructured under Lavastone Ltd and share were issued by Lavastone Ltd to CIM Financial Services Ltd. On 14 December 2018, CIM Financial Services Ltd declared a dividend in specie of all the shares it held in Lavastone Ltd. The carrying amount of the investment in Lavastone Ltd in the Company’s financial statements at the date of distribution amounted to MUR 1,721.1m (Note 20). The results of the disposal group distributed in the Group’s financial statements are as follows: Sep-19 Sep-18 MUR m MUR m Revenue 40.2 163.7 Expenses (19.9) (67.7) Operating income 20.3 96.0 Finance costs (0.3) (0.7) Profit before tax 20.0 95.3 Income tax expense (4.2) (16.6) Profit after tax 15.8 78.7 Profit on disposal of subsidiaries - - Profit after tax for the year from discontinued operations 15.8 78.7 Basic/diluted earnings per share from discontinued operations 0.02 0.12 Sep-19 Analysis of assets and liabilities of disposal group distributed MUR m Assets Property, plant and equipment 1,068.3 Investment properties 1,216.5 Intangible assets 45.4 Cash and cash equivalent 269.9 Other assets 319.8 2,919.9 Liabilities Other borrowed funds 3.8 Current tax liabilities 5.5 Deferred taxation 28.5 Other liabilities 186.8 224.6 Net assets of disposal group distributed 2,695.3 The net cash flows arising on the discontinued operations are as follows: Sep-19 Sep-18 MUR m MUR m Operating 15.8 636.8 Investing - (438.9) Financing 170.0 (116.2) Net cash inflow 185.8 81.7 CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 148