(b) COMPANY Customer portfolio Goodwill on acquisition Software / others TOTAL COST MUR m MUR m MUR m MUR m At 1 October 2021 – – 249.1 249.1 Additions – – 22.6 22.6 At 30 September 2022 – – 271.7 271.7 Amalgamation adjustment 31.0 12.8 0.3 44.1 Additions – – 12.3 12.3 31.0 12.8 284.3 328.1 Amortisation At 1 October 2021 – – 152.5 152.5 Charge for the year – – 35.7 35.7 At 30 September 2022 – – 188.2 188.2 Amalgamation adjustment – – 0.3 0.3 Charge for the year 4.9 – 29.7 34.6 At 30 September 2023 4.9 – 218.2 223.1 Carrying value At 30 September 2023 26.1 12.8 66.1 105.0 At 30 September 2022 – – 83.5 83.5 Impairment test on goodwill With the amalgamation of Tsusho Capital (Mauritius) Ltd with the Company, the Customer porfolio and Goodwill on acquisition is now recognised at Company level. At the year end, the business operations of ex-Tsusho Capital (Mauritius) Ltd has been treated as a cash generating unit (CGU) in the Finance segment to assess whether the goodwill has been impaired. The recoverable amount of the CGU has been determined based on fair value calculation. Th post-tax cash flow projections are based on financial budgets approved by management covering a five-year period. The pre-tax discount rate applied represents the current market assessment of the risks specific to the CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The recoverable amount of the CGU has been determined based on a value in use (VIU) approach using a discount rate of 5.01%. The key assumptions used for preparing the cash flow forecasts are based on management’s past experience of the industry, required resources needed to service new and existing operations as well as the current economic environment. The discount rate takes into account both debt and equity, proportionately weighted. The cost of equity is derived from the expected return on investment by the Group’s investors. The cost of debt is based on the interestbearing borrowings the Group is obliged to service. Cash flows beyond the five-year period has been assumed to have a zero per cent terminal growth. Because of the inputs used in the discounted cash flow (DCF), the DCF assessment falls in level 3 of the fair value hierarchy. No impairment on goodwill has been recognised in 2023. 175 OUR YEAR AT A GLANCE OUR PEOPLE GOVERNANCE FINANCIAL STATEMENTS
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