21 INVESTMENT IN ASSOCIATES (a) Movement in investment in associates GROUP COMPANY Sep-23 MUR m Sep-22 MUR m Sep-23 MUR m Sep-22 MUR m At 1 October 12.5 – 15.0 – Addition (i) 4.7 15.0 4.7 15.0 Share of loss (3.2) (2.5) – – At 30 September 14.0 12.5 19.7 15.0 (i) The addition for 2022 relates to the acquisition of Fundkiss Technologies Ltd. In May 2023, CIM Financial Services Ltd acquired additional 4.57% stake in Fundkiss Technologies Ltd increasing the shareholding to 29.57% in the digital lending platform. (ii) Impairment of investments 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 pre-tax rate of 5.01% (2022: 4.52%). As a result of the assessments the directors have recognised no impairment for the year ended 30 September 2023. (b) Details of the associates Details of the associates at the reporting date are as follows: Proportion of direct ownership (%) Proportion of indirect ownership (%) Name of associates Principal activity Principal place of business Country of incorporation Sep-23 Sep-22 Sep-23 Sep-22 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 Fundkiss Technologies Ltd (ii) Digital lending platform Mauritius Mauritius 29.6 25.0 – – 30 June (i) All of the above associates are accounted for using the equity method in the consolidated financial statements. (ii) Acquistion of additional stake of 4.57% in Fundkiss Technologies Ltd during the year. The associate’s activities are strategic to CFSL activities as it is concentrated in the money lending sector. (iii) For the purposes of applying the equity method of accounting, the financial statements of Fundkiss Technologies Ltd for the year ended 30 September 2023 have been used, and appropriate adjustments have been made for the effects of significant transactions between that date and 30 June 2023. (iv) For the purposes of applying the equity method of accounting, the financial statements of Li & Fung (Mauritius) Ltd and Dodwell (Mauritius) Ltd for the year ended 30 September 2023 have been used, and appropriate adjustments have been made for the effects of significant transactions between that date and 31 December 2022. EXPLANATORY NOTES 30 SEPTEMBER 2023 168 CIM FINANCE ANNUAL REPORT
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