Constance Hotels Services Limited | Annual Report 2025

209 ANNUAL REPORT 2025

Notes to the Financial Statements Year ended December 31, 2025

Notes to the Financial Statements Year ended December 31, 2025

18. EMPLOYEE BENEFIT LIABILITIES (CONT’D)

20. CONVERTIBLE BONDS

(c) Other long term benefits (cont’d)

THE GROUP 2025

2024

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

MUR'000 961,715

MUR'000

As at January 1,

961,715

2025

2024

9,260

Transaction costs expensed upon redemption

- -

%

%

(970,975)

Paid during the year As at December 31,

4.9- 5.2

Discount rate

3.6 2.5

-

961,715

2.5

Future salary growth rate

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

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.

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

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.

THE GROUP 2025

2024

MUR'000

MUR'000

Key terms and conditions of the funding arrangements are as follows:

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)

• 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. • The conversion price is subject to certain adjustments such as capitalisation of profit or reserves, capital distribution, rights issues, share split, amongst others. • Redemption of the bonds shall be at the option of the issuer. The issuer may redeem some or all the bonds, any time prior to the maturity date. The option price shall be determined as follows: - if redemption happens before the 4 th anniversary of the first subscription, the redemption price shall be the nominal amount, - if redemption happens after the 4 th anniversary of the first subscription, the redemption amount shall be 100.5% of the nominal amount. During the year 2025, the Group has opted to repay all the convertible bonds issue by these companies through facilities taken with a commercial bank. Any difference between the redemption amount and the carrying amount has been expensed through equity.

163 157 166 163

37 36 37 36

19. TRADE AND OTHER PAYABLES

THE GROUP

THE COMPANY

2025

2024

2025

2024

MUR'000 416,404

MUR'000

MUR'000

MUR'000

29

Trade payables

462,282

502

Payable to group companies: - Subsidiary companies

-

444,261 10,711 25,571

- -

720,597

10,711 444,239 438,933

- Associated companies

-

Other payables Contract liabilities

522,131 420,373

11,796

-

-

21. INCOME TAX

1,310,287

480,572

1,404,786

732,895

THE GROUP 2025

The carrying amounts of trade and other payables approximate their fair values.

2024

MUR'000

MUR'000

Other payables comprises mainly of accruals for payroll related costs, amounts payable to contractors and other accruals made in the normal course of business. Included in other payables for the Group in 2024 is an amount of MUR 139.8 million pertaining to an incremental cost incurred with respect to a new lease arrangement. This has been fully settled in 2025.

(a)

Amounts recognised in the statements of financial position are as follows: Current tax liabilities

101,644

42,396

Contract liabilities comprise of the Group’s collection of future deposits for stays in hotels after the year end.

Current tax liabilities is on adjusted profit for the year at 19% (2024: 19%).