EXPLANATORY NOTES 30 SEPTEMBER 2023 1. GENERAL INFORMATION CIM Financial Services Ltd (‘CFSL’ or the ‘Company’) is a public company limited by shares, incorporated on 15 July 2005 and domiciled in Mauritius. The principal segments of activities of the Company are Consumer Finance, Cards & Payments, Leasing, Insurance Agency and Factoring. The Company’s main place of business is at Cim House, cnr Edith Cavell & Mère Barthélémy Streets, Port-Louis. As at 30 September 2023, its holding company is Cim Holdings Ltd and its registered address is Taylor Smith House, Old Quay D Road, Port Louis. Effective 1 October 2022, Tsusho Capital (Mauritius) Ltd has been amalgamated with and into Cim Financial Services Ltd, whereby Cim Financial Services Ltd was the surviving entity. (Refer to Note 2.5 below) These financial statements have been prepared for the year ended 30 September 2023 and will be submitted for consideration and approval at the forthcoming annual meeting of the shareholders of the company. 2. ACCOUNTING POLICIES 2.1 Basis of preparation The financial statements of Cim Financial Services Ltd include the consolidated financial statements of the parent company and its subsidiary companies (the “Group”) and the separate financial statements of the parent company (the “Company”). The financial statements are presented in Mauritian Rupees and all values are rounded to the nearest one decimal place of million (MUR m), except when otherwise indicated. These policies have been consistently applied to all the years presented, unless otherwise stated and where necessary, comparative figures have been amended to conform to changes in presentation in the current year. Following the amalgamation of entities under common control in October 2022 (note 2.5), management has opted to not restate the comparative year figures in the annual report. The financial statements are prepared under the historical cost convention except that: • Relevant financial assets and financial liabilities are stated at their fair value. The Group and the Company present their statements of financial position in order of liquidity. An analysis regarding recovery or settlement within 12 months after the reporting date (current) and more than 12 months after the reporting date (non-current) is presented in note 43 of the financial statements. 2.2 Going concern The Group’s and the Company’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis. 2.3 Statement of compliance The financial statements of CIM Financial Services Ltd comply with the Mauritian Companies Act 2001 and have been prepared in accordance with International Financial Reporting Standards (IFRSs), as issued by the International Accounting Standard Board (IASB). 2.4 Basis of consolidation The consolidated financial statements comprise the financial statements of CIM Financial Services Ltd and its subsidiaries as at 30 September 2023. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) • Exposure, or rights, to variable returns from its involvement with the investee, and • The ability to use its power over the investee to affect its returns. 104 CIM FINANCE ANNUAL REPORT
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