Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Proportion of direct ownership (%) Proportion of indirect ownership (%) Name of subsidiaries Principal activity Principal place of business Country of incorporation Sep-20 Sep-19 Sep-20 Sep-19 Year end Li & Fung (Mauritius) Ltd Buying agent Mauritius Mauritius 40.0 40.0 - - 31 December Dodwell (Mauritius) Ltd Buying agent Mauritius Hong Kong 40.0 40.0 - - 31 December iVeri Payment Technologies Proprietary Ltd Payment solutions provider South Africa South Africa - - 49.0 49.0 31 December Touchpoint Payment Proprietary Limited Payment solutions provider South Africa South Africa - - 41.7 41.7 31 December evriPay ZA (Proprietary) Ltd Dormant South Africa South Africa - - 49.0 49.0 31 December iVeri Global Limited Software solutions provider Mauritius Mauritius - - 49.0 49.0 31 December Blue Nile Holding Ltd (ii) Investment holding Mauritius Mauritius - - - 32.6 31 December (i) All of the above associates are accounted for using the equity method in the consolidated financial statements. (ii) During the year there has been a share buy back by the shareholders of Blue Nile Holding and the assets have been distributed. (iii) Although Cim group has 49% shareholding, there is still no control due to unsufficient representation on the board. Explanatory Notes 30 SEPTEMBER 2020 21. INVESTMENTS IN ASSOCIATES GROUP COMPANY (a) Movement in investment in associates Sep-20 MUR m Sep-19 MUR m Sep-20 MUR m Sep-19 MUR m At 1 October 141.0 177.5 10.4 16.2 Share of results of associates (1.3) (0.5) - - Share buy back of associates (110.8) - - - Impairment charged (4.4) (40.9) (10.4) (5.8) Impairment reversal - 9.1 - - Movement in other reserves 2.9 6.7 - - Dividends (2.5) (10.9) - - At 30 September 24.9 141.0 - 10.4 (b) Impairment of investments As at 30 September 2020, the Group tested for impairment for its investments in associates. Impairment tests were done in accordance with IAS 36 - Impairment of Assets where a value in use approach has been used, with a WACC of 5.5%. As a result of the assessments the directors have recorded the necessary impairment adjustments to the carrying value of its investment in associates. An impairment loss was recognised at Group level amounting to MUR4.4M for its investment in Iveri Global Limited. (c) Details of the associates Details of the associates at the reporting date are as follows: 128