Constance Hotels, Resorts and Golf | Annual Report 2023

156

Financial Statements

Constance Hotels Services Limited

Annual Report 2023

157

Financial Statements

Constance Hotels Services Limited

Annual Report 2023

Notes to the Financial Statements Year ended December 31, 2023

Notes to the Financial Statements Year ended December 31, 2023

3.

FINANCIAL RISK MANAGEMENT (continued)

3.

FINANCIAL RISK MANAGEMENT (continued)

3.1

Financial Risk Factors (continued) Liquidity risk (continued) Maturity analysis of the financial instruments (continued) THE COMPANY 2023

3.1

Financial Risk Factors (continued) Liquidity risk (continued) THE COMPANY

Less than

Between 1 and 2 years

Between 2 and 5 years

Over

At December 31, 2023

1 year

5 years

Total

MUR’000 664,490 229,168 893,658

MUR’000

MUR’000

MUR’000

MUR’000

On demand 3 to 12 months 1 to 5 years Over five years

Total

MUR’000

MUR’000

MUR’000

MUR’000 MUR’000

-

-

-

664,490

Trade and other payables

233,524 233,524

1,428,407 1,428,407 Between 2 and 5 years MUR’000

11,381 11,381

1,902,480 2,566,970

Borrowings

-

883,535

- - -

- - -

883,535 128,540

Financial assets at amortised cost

128,540 128,540

-

Cash and cash equivalent

883,535

1,012,075

Less than

Between 1 and 2 years MUR’000

Over

At December 31, 2022

1 year

5 years

Total

2022

On demand

3 to 12 months

1 to 5 years

Over five years

Total

MUR’000

MUR’000

MUR’000

MUR’000

MUR’000

MUR’000

MUR’000

MUR’000

Trade and other payables

679,555

- -

- -

- -

679,555

Financial assets at amortised cost

-

843,221

- -

- -

843,221 22,384

Bank overdraft

-

-

Cash and cash equivalent

22,384

-

Borrowings

231,151

232,722

1,634,058

57,635

2,155,566

Lease liabilities

453

-

-

-

453

22,384

843,221

-

-

865,605

911,159

232,722

1,634,058

57,635

2,835,574

3.2

Capital Risk Management The Group’s objectives when managing capital are: - to safeguard the Group’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefit for other stakeholders; and - to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk. The Group’s strategy has remained unchanged for the past financial years. The strategy was to maintain the debt-to-capital ratio at the lower end in order to secure access to finance at a reasonable cost. The debt-to-capital ratios at December 31, 2023 and December 31, 2022 were as follows: THE GROUP THE COMPANY 2023 2022 2023 2022 MUR’M MUR’M MUR’M MUR’M Total debt (Note 6 and 17) 9,270 9,315 1,552 1,738 Less: cash and cash equivalents (566) (432) (129) (22) Net debt 8,704 8,883 1,423 1,716 Total equity 5,941 5,387 2,146 1,585 Total capital plus net debt 14,645 14,270 3,569 3,301

Bank borrowings maturity periods are detailed in Note 17. Trade and other payables are payable within one year.

The liquidity position is closely monitored by management and the Group does not anticipate any major liquidity gap to arise. Borrowings excludes Bank overdraft which has been disclosed on a separate line as part of the liquidity disclosure. Maturity analysis of the financial instruments These financial assets disclosed below are held to manage liquidity risk of the Group and the Company. THE GROUP On demand 3 to 12 months 1 to 5 years Over five years Total

2023

MUR’000

MUR’000

MUR’000

MUR’000 MUR’000

478,101

-

- - - -

- - -

478,101 116,460 566,100

Net trade receivables

-

116,460

Financial assets at amortised cost

566,100

-

Cash and cash equivalents

1,044,201

116,460

- 1,160,661

On demand

3 to 12 months

1 to 5 years

Over five years

Total

2022

MUR’000

MUR’000

MUR’000

MUR’000

MUR’000

Net trade receivables

467,984

-

- - -

- - -

467,984 181,897 431,788

Financial assets at amortised cost

-

181,897

Cash and cash equivalents

431,788

-

59.4%

39.9%

Debt-to-capital ratio

62.2%

52.0%

899,772

181,897

-

-

1,081,669

Total capital plus net debt is made up of capital and reserves plus net debt of the Group and the Company. The net debt to capital ratio have reduced from 62.2% in 2022 to 59.4% in 2023 for the Group and from 52.0% in 2022 to 39.9% in 2023 for the Company, following the repayment of loans which took place during the year.