Constance Hotels, Resorts and Golf | Annual Report 2023

192

Financial Statements

Constance Hotels Services Limited

Annual Report 2023

193

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

30.

BUSINESS COMBINATIONS

Key management personnel compensation: Short term employee benefit 212,186 183,905 2,850 2,124 Post-employment benefit 6,846 5,770 - - 219,032 189,675 2,850 2,124

On December 30, 2023 the Group acquired 60% of the share capital of Mourouk Ebony Management Limited for an amount of MUR 90 million. A goodwill of MUR 78 million has arisen from the acquisition. The acquisition was made as part of Group’s long term strategy to diversify its portfolio of hotels.

Sales Purchase Dividend Management of goods of goods income/(payable) and Amount due and services and services Financial income/(charges) other fees (to)/from 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000

THE GROUP THE COMPANY 2023 2022 2023 2022 MUR’000 MUR’000 MUR’000 MUR’000

common shareholders 1,465 2,038 (227,980) (39,740) - - - - (176,552) (4,823) Associates 1,173 1,377 (63,750) (44,250) 74,659 46,680 268,858 239,412 73,423 100,967

common shareholders - - - - - - - - - (4,823) Associates - - - - - - (4,295) 97 (4,288) (24,224)

THE COMPANY Subsidiaries - - - - 678,344 449,517 64,826 61,036 286,520 194,896

None of the goodwill recognised is expected to be deductible for income tax purposes.

(a) The following table summarises the consideration paid for Mourouk Ebony Management Limited and the amounts of the assets acquired and liabilities assumed recognised at the acquisition date, the below is reflective of the fair value of identifiable assets and liabilities acquired. Consideration THE GROUP MUR’000 At December 30, 2023 Cash 90,000 Total consideration 90,000

Assets acquired and liabilities assumed Cash and cash equivalents Property, plant and equipment (Note 5) Computer software (included in intangibles) (Note 7)

11,288 71,149

770

Right-of-use assets (Note 6)

328,373

Inventories (Note 12)

8,030

Trade and other receivables Trade and other payables

26,688

(27,401) (2,351) (65,000) (331,546)

Employee benefit liabilities (Note 18)

Borrowings

Lease liabilities (Note 6)

Total identifiable net assets

20,000 (8,000) 78,000

Non-controlling interest (40% of net assets)

Goodwill (included in intangibles)

Purchase consideration

90,000

Net cash outflow on acquisition of subsidiary

THE GROUP MUR’000

(b)

Consideration paid in cash

90,000

Less: cash and cash equivalent balances acquired

(11,288) 78,712

(c) The fair value of trade and other receivables is MUR 27 million. As at December 31, 2023, the amount of Trade receivable and provision for doubtful debt were immaterial. (d) The Group measured the acquired liabilities using the present value of the remaining lease payment at date of acqusition. The right of use assets were revalued by an external valuer. (e) The Group elected to value the non-controlling interest using the proportionate share of the acquiree’s identifiable assets. (f) The goodwill of MUR 78 million comprises the value of expected synergies arising from the acquisition which is not separately recognised.

29. RELATED PARTY TRANSACTIONS THE GROUP Enterprises with

Enterprises with

The amounts receivable and payable in respect to related parties have maturity within one year. As part of our assessment of the recoverability of the intercompany balance receivables, the financial unencumbered performance and assets available of the related party are considered. Related party transactions have been made in the normal course of business.