30 Equity Stated Capital COMPANY 2023 & 2022 No of shares Ordinary shares Million MUR m No par value shares 680.5 680.5 The Company has authorised and issued 680,522,310 shares of no par value issued at the reporting date. All shares are fully paid and carry equal voting rights. The ordinary shares are classified as equity. Capital Reserves The capital reserves comprise mainly of the previous Statutory Reserve and General Banking Reserve that were set aside for unforeseeable losses under the Mauritian Banking Act for one subsidiary of the Group. As the subsidiary is no longer regulated by the Bank of Mauritius, these reserves are no longer legally required. Nonetheless, the board would prefer to maintain these reserves separately from retained earnings. These undistributable reserves are available to be freely transferred within equity if management chooses to do so. Otherwise, they are available for distribution on winding up. Retained Earnings Retained earnings arise from the accumulation of profits from the profit or loss less any dividends payable for the period. Actuarial Reserves Actuarial reserves arise on remeasurement of net defined benefit liability. Remeasurement of the net defined benefit liability, which comprises actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), is recognised immediately in other comprehensive income in the period in which they occur. Remeasurements recognised in other comprehensive income are not reclassified to profit or loss in subsequent periods. Amalgamation Reserves The amalgamation reserves comprise of an amount of MUR 530.7m which occurred upon the amalgamation of entities of the Group which were under common control. The Company adopted accounting principles similar to the pooling-ofinterest method based on predecessor values and the amalgamation reserve arose as a result of the elimination of the share capital and the investments in the related companies. During the year there has been a reduction of MUR 56.7m in respect to an amalgamation (note 2.5). Other Reserves Reserves not dealt in above are accounted as other reserves and include mainly Foreign exchange reserves and sharebased payments reserves. EXPLANATORY NOTES 30 SEPTEMBER 2023 188 CIM FINANCE ANNUAL REPORT
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