Constance Hotels Services Limited | Annual Report 2025

139 ANNUAL REPORT 2025 139 ANNUAL REPORT 2025

Independent Auditor’s Report To the members of Constance Hotels Services Limited

Independent Auditor’s Report To the members of Constance Hotels Services Limited

REPORT ON THE AUDIT OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS Opinion We have audited the consolidated and separate financial statements of Constance Hotels Services Limited (the “Company”) and its subsidiaries (the “Group”) set out on pages 144 to 218 which comprise the consolidated and separate statements of financial position as at December 31, 2025, and the consolidated and separate statements of profit or loss and other comprehensive income, consolidated and separate statements of changes in equity and consolidated and separate statements of cash flows for the year then ended, and notes to the consolidated and separate financial statements, including material accounting policy information. In our opinion, the consolidated and separate financial statements give a true and fair view of the consolidated and separate financial position of the Group and Company as at December 31, 2025, and of its consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board and comply with the Companies Act 2001 and the Financial Reporting Act 2004. We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group and Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (the “IESBA Code”) as applicable to audits of financial statements of public interest entities, and other independence requirements applicable to performing audits of financial statements of the Group and Company and in Mauritius. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code and in accordance with other ethical requirements applicable to performing audits of the Group and Company and in Mauritius. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Basis for Opinion Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated and separate financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated and separate financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated and separate financial statements. Key Audit Matters

REPORT ON THE AUDIT OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS (CONT’D) Key Audit Matters (cont’d)

Key Audit Matter

How the matter was addressed in the audit

Our procedures in relation to assessing the impairment of investments in subsidiary companies included the following: We reviewed the Group’s controls relating to the preparation and approval of cash flow forecasts. We obtained the discounted cash flow models that support the value-in-use calculations. Together with our valuation specialist, we performed the following: • assessed the appropriateness of the methodology applied in the impairment assessment of investments in subsidiary companies; • assessed the reliability and appropriateness of assumptions used to reach projections on future income, terminal growth rate assumptions, discount rates and performed sensitivity analysis to determine the impact of those assumptions. Our valuation specialists independently derived the discount rates and compared same with those of management; • verified the mathematical accuracy of the discounted cashflow forecasts and checked the internal consistency of the models; • reviewed the supporting agreements and underlying documentation which support the financial forecasts prepared by management; • challenged the key judgments provided by management with reference to historical trends, our own expectations based on our industry knowledge and management’s strategic plans; • discussed potential changes in key inputs with management in order to evaluate whether the inputs and assumptions used in the cash flow forecasts were reasonable. We reviewed the sensitivity analysis performed by management to evaluate the impact on the value in use calculations; and • assessed the appropriateness and completeness of the related disclosures made in the financial statements.

Impairment of Investments in subsidiary companies The Company holds investments in subsidiaries which amounted to MUR 2.9 billion as of December 31, 2025 (2024: MUR 2.9 billion). Investment in subsidiaries is carried at cost less impairment in accordance with IAS 36 Impairment of Assets in the Company’s separate financial statements. Management determines at end of each reporting period the existence of any indication of impairment of the Company’s investment in subsidiaries. If there are indicators of impairment, management would assess the recoverable amounts of the subsidiary companies. Any shortfall between the recoverable amounts of the subsidiaries and their carrying value is recognised in profit or loss. These subsidiaries might not sustain their performance in order to support their respective carrying value in the company’s financial statements. As a result, an impairment assessment was required to be performed by comparing the carrying value of these to their recoverable amount to determine whether an impairment was required to be recognised. The impairment of the subsidiaries involves significant use of estimates and judgements, including occupancy rates, average room rates, guest night spending, growth rates and discount rates. The value in use is highly sensitive to changes in these key inputs. The impairment adjustments for December 31, 2025 is Nil (2024: Mur Nil million). Disclosures relating to the impairment review of investments in subsidiary companies have been provided in notes 4 and 8 to the separate financial statements. The determination of the recoverable amount of the investments in subsidiaries was one of the key judgemental areas in preparing the financial statements due to a combination of the significance of the investments in the subsidiaries and the inherent uncertainty in the assumptions supporting the recoverable amount of these investments. Accordingly, the impairment of investment in subsidiary companies was determined to be a key audit matter.