Constance Hotels Services Limited | Annual Report 2025

211 ANNUAL REPORT 2025

Notes to the Financial Statements Year ended December 31, 2025

Notes to the Financial Statements Year ended December 31, 2025

21. INCOME TAX (CONT’D)

22. REVENUE

(b) Amounts recognised in the profit or loss

THE GROUP

THE COMPANY

2025

2024

2025

2024

THE GROUP

THE COMPANY

MUR'000

MUR'000

MUR'000

MUR'000

2025 2024 MUR'000 MUR'000 MUR'000 MUR'000 2024 2025

The following is an analysis of the revenue for the year. Room Revenue

3,604,952 1,818,501 1,060,614 6,484,067

- - - -

3,264,288 1,894,932

- - - -

156,333 10,719

- - -

Current tax on the adjustment profit for the year at 19% (2024: 19%)

89,852

- - -

Food and beverages

Fair share contribution

-

Others

989,866

(164)

(Overprovision)/Underprovision previous year

1,364

Revenue from contracts with customers

6,149,086

23,374 190,262

759 759

Deferred income tax (Note 11(c))

88,318 179,534

661 661

-

702,850 702,850

Dividend income Total revenue

-

371,656 371,656

Charged to profit or loss

6,484,067

6,149,086

(c) Tax reconciliation

Hotel operations

THE GROUP

2025

2024

The tax on the Group’s and the Company’s profit before taxation differs from the theoretical amount that would arise using the basic tax rate of the Company as follows:

MUR'000

MUR'000

Timing of revenue recognition At a point in time

THE GROUP

THE COMPANY

2,879,115 3,604,952 6,484,067

2,884,798 3,264,288 6,149,086

2025 2024 MUR'000 MUR'000 MUR'000 MUR'000 2024 2025

Over time

621,710 (288,452) 333,258 63,319 119,448 (20,908)

352,520

Profit before taxation

516,079 (206,087) 309,992

156,483

- -

Less: Share of results of associates

-

Others consist of revenue streams such as spa, boutique and various other hotel services provided by the Group.

156,483 29,732 34,921 (74,629)

23. OPERATING PROFIT

66,979 59,121

Tax calculated at a rate of 19% (2024: 19%) Expenses not deductible for tax purposes(i)

58,898 64,620 (4,371) (7,023) (6,130) 67,861 (7,044) 11,359 1,364

THE GROUP

THE COMPANY

(134,125)

Income not subject to tax(ii) Other allowable deductions

2025

2024

2025

2024

-

- - - - - - -

- - -

MUR'000

MUR'000

MUR'000

MUR'000

(12,825)

Utilisation of previously unrecognised tax losses (Overprovision)/Underprovision previous year

(164)

The operating profit is arrived at: after crediting: Other operating income Net foreign exchange transaction gains

40,568 (9,895)

8,784

Tax losses for which no deferred income tax was recognised

10,654

Effect of tax rate differential(iii)

-

38,835 115,801

103,272

33,837 171,218

100,089 32,989

-

Effect of change in deferred tax rate(iv)

485

1,273

10,719

Fair share contribution

- -

-

1,360

870

Profit on disposal of property, plant and equipment

1,996

1,561

-

Other adjustments and timing differences

(502)

Charged to profit or loss

190,262

759

179,534

661

after charging: Cost of sales

2,426,747

- - - -

2,401,264

- - - -

(i) Expenses not deductible for tax purposes comprise of depreciation and amortisation, provision for bad debts and loss on disposal for property. (ii) Income not subject to tax pertain mainly to dividend income and foreign exchange on loans. (iii) This pertains to tax adjustments arising on different tax rates for foreign subsidiaries. (iv) This relates to the amount of deferred tax expense (or income) relating to changes in tax rates following the introduction of the CCRL (2%) in 2024. (v) Refer to accounting policy 2.2(m) for more details on the fair share contribution.

761,873

Operating expenses

746,429

2,230

Loss on disposal of property, plant and equipment

1,178

(5,444)

Loss allowance (reversed)/raised

19,279

1,657,168

139,206

Administrative expenses

1,393,724

122,582