When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement with the other vote holders of the investee • Rights arising from other contractual arrangements • The Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: • Derecognises the assets (including goodwill) and liabilities of the subsidiary • Derecognises the cumulative translation differences, recorded in equity • Recognises any surplus or deficit in profit or loss, and • Reclassifies the parent’s share of components previously recognised in other comprehensive income to profit or loss or retained earnings as appropriate. 2.5 Amalgamation of entity under common control In October 2022 Tsusho Capital (Mauritius) Ltd was amalgamated with and into the surviving Company, CIM Financial Services Ltd. The amalgamation was done in line with the objective to streamline the group structure and to improve performance, efficiency, dynamism and creativity. Common control transactions fall outside the scope of IFRS 3 Business Combinations because there is no change in control over the assets by the ultimate parent. As a result, the Company adopted accounting principles similar to the pooling-of-interest method based on the predecessor values. No consideration was paid to any shareholders as effect of the amalgamation. Assets and liabilities transferred to the surviving Company, were not stepped up to fair value and were amalgamated at their actual carrying values as at 1 October 2022. The customer portfolio and goodwill have been recognized as assets at Group and Company level (refer to note 24). Effective 1 October 2022, the stated capital of the Company was MUR 680,522,310. The amalgamation generated in a negative amalgamation reserve of MUR 57.1m resulting in a net amalgamation reserve of MUR 530.3m which is shown under other reserves. 105 OUR YEAR AT A GLANCE OUR PEOPLE GOVERNANCE FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy MzQ3MjQ5