Constance Hotels, Resorts and Golf | Annual Report 2023

184

Financial Statements

Constance Hotels Services Limited

Annual Report 2023

185

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

18.

EMPLOYEE BENEFIT LIABILITIES (continued)

19.

TRADE AND OTHER PAYABLES

THE GROUP

THE COMPANY

(b) Other post retirement benefits Other post retirement benefits comprise mainly gratuity on retirement payable under the Workers’ Rights Act 2019 and other benefits. i. The amounts recognised in the statement of financial position are as follows: THE GROUP 2023 2022 MUR’000 MUR’000 Present value of unfunded obligations 100,969 79,193

2023

2023

2022

2022

MUR’000

MUR’000

MUR’000

MUR’000

355,441

726

Trade payables

427,241

936

Payable to group companies: - Subsidiary companies

-

647,141

-

643,981 27,152

5,660

5,660

- Associated companies

27,152 636,824

947,722

10,963

Other payables

7,486

1,308,823

664,490

1,091,217

679,555

ii.

Movement in the liability recognised in the statements of financial position:

The carrying amounts of trade and other payables approximate their fair values. Other payables comprises mainly accruals for payroll related costs, amounts payable to contractors and other accruals made in the normal course of business. Included in other payables is an amount of MUR 174.4 million pertaining to an incremental cost incurred with respect to a new lease arrangement. Refer to Note 6 for further details.

THE GROUP

2023

2022

MUR’000

MUR’000

79,193

At January 1,

58,917

2,351

Acquisition of subsdiary Charged to profit or loss (a)

-

13,734

9,794

20.

CONVERTIBLE BONDS

8,115

Charged in other comprehensive income

10,482

(2,424)

THE GROUP 2023

Benefits paid

-

100,969

79,193

2022

MUR’000

MUR’000

(a) Included in profit or loss - Current service cost

961,715

As at January 1,

646,980 315,000

9,003 4,731

7,358 2,436

- -

Amount subscribed during the year Cost attributable to convertible bonds

- Net interest expense

(265)

13,734

9,794

961,715

As at December 31,

961,715

2023

iii. The principal actuarial assumptions used for the purposes of the actuarial valuations were:

2022

%

%

During the financial year ended December 31, 2021, the Group, through three of its subsidiaries namely Constance Industries Limited, Beauport Industries Limited and White Sand Paradise Limited, has contracted with the Mauritius Investment Corporation Ltd (“MIC”), a wholly owned subsidiary of the Bank of Mauritius to issue convertible bonds, of MUR 10 million each, for a total amount of MUR 1.11 billion. One of the main objectives of the MIC was to provide financial support to Mauritian companies impacted by the COVID-19 pandemic through the subscription of convertible bonds in those companies. There were no convertible bonds issued in favour of the MIC during the year for the Group (2022: MUR 315 million). All transaction costs associated with the redeemable convertible bonds have been set off against the amount subscribed. Key terms and conditions of the funding arrangements are as follows: - Maturity date of the bonds are July 30, 2030. - The conversion price has been predetermined prior to the subscription. - An interest rate of 3.50% over the period of the bond is payable on the last day of each interest period. - On maturity, any unpaid capital and interest is converted into ordinary shares in accordance with the predetermined conversion price.

5.0 - 5.3

Discount rate

5.9 - 6.6

1.0

Future salary growth rate

3.5

iv. Sensitivity analysis on other post retirement benefit obligations at end of the reporting date:

THE GROUP

2023

2022

MUR’000

MUR’000

December 31, Decrease in discount rate (1% movement) Increase in discount rate (1% movement) Increase in future long term salary (1% movement) Decrease in future long term salary (1% movement)

13,259 11,103 12,763 10,982

11,757

9,569

10,966

9,407