CFSL Integrated Report 2022

CIM FINANCE. INTEGRATED REPORT 2022 | 171 EXPLANATORY NOTES 30 SEPTEMBER 2022 (i) Elimination of investment on amalgamation In 2021, on amalgamation of the 5 subsidiaries with and into Cim Financial Services Ltd (refer to Accounting policies 2.4), the investments of the respective companies by the Holding company were eliminated against cost of investments. (ii) Impairment of investments In preparing the financial statements, the directors make an assessment regarding the recoverability of its investment in subsidiaries to determine if any impairment is required. In cases where the carrying amounts are greater than the recoverable amounts, the carrying amounts are reduced to their recoverable amounts. As at 30 September 2022, the Company assessed for impairment of its investments in subsidiaries, in accordance with IAS 36 - Impairment of Assets where a value in use approach has been used, with a pre-tax rate of 5.3% (2021: 5.3%). The amount of impairment charge recognised for 2022 MUR45.7m relates Cim International Holdings Ltd. (iii) Disposal In July 2022, the Group disposed of one of its wholly owned subsidiary, Cim Forex Ltd to Swan General Ltd for MUR77.4m, resulting in a gain of MUR57.4m - refer to note 37. 19. INVENTORIES 20. INVESTMENT IN SUBSIDIARIES GROUP & COMPANY Sep-22 MUR m Sep-21 MUR m Cost Consumables 3.0 3.0 COMPANY Sep-22 MUR m Sep-21 MUR m (a) At 1 October 154.8 1,118.1 Addition 147.1 - Elimination of investment on amalgamation (i) - (963.3) Impairment (ii) (45.7) - Disposal (iii) (20.0) - At 30 September 236.2 154.8

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