Constance Hotels, Resorts and Golf | Annual Report 2023

164

Financial Statements

Constance Hotels Services Limited

Annual Report 2023

165

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

6.

RIGHT-OF-USE ASSETS (continued)

6.

RIGHT-OF-USE ASSETS (continued) LEASE LIABILITIES

Motor vehicles

Motor vehicles

THE COMPANY

Motor vehicles

Motor vehicles

2023

2022

2023

2022

THE COMPANY

MUR’000

MUR’000

MUR’000

MUR’000

444

At January 1,

2,360

COST At January 1, and December 31,

9

Interest expenses Lease payments At December 31,

80

21,191

21,191

(453)

(1,996)

DEPRECIATION At January 1, Charge for the year

- - - -

444 444

21,191

20,533

Current

-

658

Non current

-

At December 31,

21,191

21,191

444

NET BOOK VALUES At December 31,

The following are the amounts recognised in profit or loss.

-

-

THE GROUP

THE COMPANY

2023

2023

2022

2022

LEASE LIABILITIES

Land and buildings MUR’000 4,135,455

Plant and machinery MUR’000

Motor

MUR’000 256,624 318,438 575,062

MUR’000

MUR’000 247,262 315,968 563,230

MUR’000

vehicles MUR’000

Total

THE GROUP

MUR’000

- 9 9

Depreciation expense of right-of-use assets Interest expense on lease liabilities Total amount recognised in profit or loss

658

80

10,112

9,438

4,155,005

At January 1, 2023

738

81,662

- - -

18,541

100,203

Additions

4,132

- -

4,132

Remeasurement (*)

During the year, two subsidairies of the Group secured leaseholds rights, held previously by a company having common shareholders with the Group, the ‘related party’, as part of an out-of-court Exchange Agreement between the latter and the Government of Mauritius. As a result, the two subsidiaries of the group incurred a compensation of MUR 174.4 million that was required to be paid to the related party in order to secure those leases. The value was determined by an independent consultant. Under right of use assets, this compensation has been treated as an initial direct cost and was included in the initial measurement of the right of use asset of the leases secured. This compensation has been included in the related party Note 29 under column ‘amount due to’ enterprise with common shareholders. The effective interest rates at the end of reporting date were from 6% to 12% (5.6% to 12%) for the Group. The leasehold land payments are incremental costs incurred to obtain the lease facilities and hence has been capitalised as part of the right of use assets. Refer to Note 3.1 for undiscounted lease liabilities. Nature of leasing activities (in the capacity as lessee) The Group leases a number of properties in the jurisdiction from which it operates. In some jurisdictions it is customary for lease contracts to provide for payments to increase each year by inflation or and in others to be reset periodically to market rental rates. In some jurisdictions property leases the periodic rent is fixed over the lease term. Variable lease payments The percentages in the table below reflect the lease payments that are either fixed or variable. The sensitivity reflects the impact on the carrying amount of lease liabilities and right-of-use assets if there was an uplift of 5% on the balance sheet date to lease payments that are variable. 31 December 2023 Lease Fixed Variable contracts payments payments Sensitivity Number % % ± MUR’000 Property leases with payments linked to inflation 6 - 30.4% 77,023 Property leases with fixed payments 4 68.4% - - Vehicle leases 14 1.2% - - 24 69.6% 30.4% 77,023

331,546 317,253 (420,237)

331,546 318,438 (436,142)

Acquisition of subsidiary Interest expenses Lease payments Exchange differences

271

914

(10,383)

(5,522)

26,833

- - - - -

-

26,833

At December 31, 2023

4,476,644

23,371

4,500,015

145,785

4,390

150,175

Current

4,330,859 4,476,644

18,981 23,371

4,349,840 4,500,015

Non current

(a)

LEASE LIABILITIES

Land and buildings MUR’000

Plant and machinery MUR’000

Motor vehicles

Total

THE GROUP

MUR’000

MUR’000

At January 1, 2022

4,164,538

22,304

12,526

4,199,368

Additions

-

- -

3,000

3,000

(b)

Remeasurement (*) Interest expenses

37,676 314,324 (418,981)

-

37,676 315,968 (438,905)

1,038

606

Lease payments

(13,230)

(6,694)

Exchange differences

37,898

-

-

37,898

At December 31, 2022

4,135,455

10,112

9,438

4,155,005

Current

126,766

10,114

3,564 5,874

140,444

Non current

4,008,687

-

4,014,561

4,135,453

10,114

9,438

4,155,005