Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 40. BUSINESS SEGMENTS (CONT’D) Finance Investments Group elimination Discontinued operations Total MUR m MUR m MUR m MUR m MUR m Year ended 30 September 2018 Gross operating income 1,757.0 258.5 (214.9) - 1,800.6 Interest expense (351.1) (111.6) 81.4 - (381.3) Net operating income 1,405.9 146.9 (133.5) - 1,419.3 Operating expenses (737.9) (259.4) 133.5 - (863.8) Operating profit before impairment 668.0 (112.5) - - 555.5 Net impairment of financial assets (213.3) (1.6) - - (214.9) Operating profit 454.7 (114.1) - - 340.6 Foreign exchange gain/(loss) 0.4 (9.7) - - (9.3) Net gain on business combination - 29.5 - - 29.5 Share of loss of associates - (14.7) - - (14.7) 455.1 (109.0) - - 346.1 Income tax (expense)/credit (76.3) 3.6 - - (72.7) Profit for the year from continuing operations 378.8 (105.4) - - 273.4 Profit for the year from discontinued operations - - - 78.7 78.7 Profit for the year 378.8 (105.4) - 78.7 352.1 Assets 12,633.0 4,573.6 (2,624.4) 2,930.5 17,512.7 Liabilities 10,720.0 1,733.3 (2,624.4) 1,037.9 10,866.8 Capital expenditure 97.3 22.8 - 52.4 172.5 Investments in associates - 177.5 - - 177.5 Depreciation & amortisation 71.5 8.2 - - 79.7 For management purposes, the Group is organised into two 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. Investments - strategy monitoring, support to SBUs, performance monitoring and statutory reporting. No operating segments have been aggregated to form the above reportable operating segments. During the year ended 30 September 2019, the Group has distributed its non cash assets in the property segment and has therefore disclosed this segment as discontinued operations. Transfer prices between operating segments are based on the Group’s pricing framework. Geographical information Sep-19 Sep-18 Revenue MUR m MUR m - From customers in Mauritius 2,176.9 1,799.3 - from customers in foreign countries 21.2 1.3 2,198.1 1,800.6 Non-current assets* - located in Mauritius 716.1 2,894.6 - located in foreign countries 14.8 20.0 730.9 2,914.6 * Non-current assets exclude financial instruments, deferred tax assets and post employment benefit assets. 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. CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 152