Constance Hotels Services Limited | Annual Report 2025

195 ANNUAL REPORT 2025

Notes to the Financial Statements Year ended December 31, 2025

Notes to the Financial Statements Year ended December 31, 2025

9. INVESTMENTS IN ASSOCIATES (CONT’D)

10. FINANCIAL ASSETS AT AMORTISED COST (CONT’D)

(iv) Reconciliation of summarised financial information

(b) Other receivables consist of refundable amounts made with various service providers. These amounts generally arise from transactions outside the trading activities of the Group and the Company. Where applicable, interest may be charged at commercial rates where the terms of repayment exceed one year. There is no collateral for those receivables and are repayable subject to certain conditions.

Reconciliation of the above summarised financial information to the carrying amount recognised in the financial statements:

Other

compre

Owner ship interest

Opening net assets

Profit for the year

hensive income

Exchange differences

Closing net assets

Interest in associates

Loan to associate Goodwill

Carrying value

11. DEFERRED INCOME TAX

MUR’000 MUR’000 MUR’000 MUR’000 MUR’000

% MUR’000 MUR’000 MUR’000 MUR’000

(a) Deferred income taxes are calculated on all temporary differences under the liability method at 15%-19% (2024: 15%-19%). There is a legally enforceable right to offset current tax assets against current tax liabilities and deferred income tax assets and liabilities when the deferred income taxes relate to the same fiscal authority on the same entity. The following amounts are shown in the statements of financial position:

2025 Le Refuge du Pêcheur Limited and its subsidiary

6,045,274

885,509 13,989 (27,174)

- -

386,069 7,316,852 32.32% 2,364,807

-

21,455 2,386,262

223,595 197,250

- -

237,584 40.00% 95,034 170,122 40.00% 68,049

52,687

-

147,721 146,083

Lagon De Rêve Limitée

46

-

78,034

Tekoma Hotel Ltd *

THE GROUP

THE COMPANY

2025

2024

2025

2024

2024 Le Refuge du Pêcheur Limited and its subsidiary

MUR’000 147,062 (293,366) (146,304)

MUR’000 118,267 (248,404) (130,137)

MUR’000

MUR’000

2,705

Deferred tax assets Deferred tax liabilities

3,464

5,620,489

536,060 12,306 (4,750)

- - -

(111,275) 6,045,274

32.32% 1,953,833 40.00% 89,438 40.00% 78,900

-

19,496

1,973,329

-

-

Lagon De Rêve Limitée

211,289 202,000

- -

223,595 197,250

52,687

-

142,125 156,934

Net deferred income tax (liabilities)/assets

2,705

3,464

Tekoma Hotel Ltd

-

78,034

The Group has not incurred any legal or constructive obligation or made any payment on behalf of the associate.

(b) At the end of the reporting period, the Group and the Company had unused tax losses of MUR 1,216 million (2024: MUR 1,561 million) and MUR 308 million (2024: MUR 261 million) respectively, available for offset against future profits. A deferred tax asset has been recognised in respect of MUR 91 million (2024: MUR 46 million) for the Group of such losses. No deferred tax asset has been recognised in respect of the remaining MUR 1,125 million (2024: MUR 1,515 million) for the Group due to unpredictability of future profit streams. The tax losses expire on a rolling basis over 5 years.

10. FINANCIAL ASSETS AT AMORTISED COST

THE GROUP

THE COMPANY

2025

2024

2025

2024

(c) The movement on the deferred income tax account is as follows:

MUR’000

MUR’000

MUR’000 1,223,850 (531,312)

MUR’000 1,133,879 (273,306)

- - -

Receivables from subsidiary companies (a) Allowance for expected credit loss Net of allowance for expected credit loss

- - -

THE GROUP

THE COMPANY

2025

2024

2025

2024

692,538 21,433

860,573

MUR’000 (130,137) (23,374)

MUR’000

MUR’000

MUR’000

156,331 71,097 227,428

Receivables from associates (a)

106,254 79,274 185,528

2,290 1,532

3,464 (759)

At January 1,

(52,931) (88,318)

4,125 (661)

1,127

Other receivables (b)

Charged to profit or loss (Note 21(b)) Credited to other comprehensive income

715,098

864,395

7,207

-

11,112

-

At December 31,

(146,304)

2,705

(130,137)

3,464

(a) During the year under review, Directors have made an assessment of allowance for expected credit loss on the above balances. As part of their assessment the Directors considered the unencumbered assets of these subsidiaries and associates. The ECL which has been booked and included in the above balances, amounted to MUR 531.3 million (2024: MUR 273.3 million).The increase in the Company’s loss allowance on receivables from subsidiary companies primarily results from significant changes in the gross carrying amount during the year, driven by additional intercompany funding and assessment of recoverability of these balances.