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Statutory Disclosures

Financial Statement Notes 26-30

26. NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Accounting policy

Non-current assets (or disposal groups) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell if their carrying amount is recovered principally through a sale transaction rather than through a continuing use. This condition is regarded as met only, when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition.

When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria describe above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.

  1. As at 30 June 2020, the Group disposed of investment properties held at Group and Company level for a gain of Rs 1.3m. All investment properties could not be disposed of due to the impact of COVID-19 on the market during the financial year ended 30 June 2021. The commitment is to dispose all in the coming financial year. We consider the carrying value to be the fair value since a buyer has already agreed to acquire the property.
  2. An analysis of the result of discontinued operations, and the result recognised on the re-measurement of assets or disposal group is as follows:

27. RELATED PARTY TRANSACTIONS AND BALANCES

Parties are considered to be related to the Group if they have the ability to, directly and indirectly, control the Group or exercise significant influence over the Group’s financial and operating decisions or vice versa, or if they and the Group are subject to common control. Goods and services are sold at market related prices in force and terms that would be available to third parties.

Note 1, Note 14 and Note 15 provide details of the Group's holding company, ultimate holding company, subsidiaries and joint venture.

During the year, the Group transacted with related parties. Transactions which are not dealt with elsewhere in the financial statements are as follows:

Amounts receivable from and payable to the subsidiaries and the joint venture do not have fixed repayment terms, security or guarantee. All other transactions have been made on commercial terms and in the normal course of business.

There has been no guarantee provided or received for any related party receivables or payables. For the year ended 30 June 2021, the Group has not recorded any impairment of amounts receivable relating to amounts owed by related parties (2020: Nil).

Outstanding balances at year end are unsecured, and settlement occurs in cash. The Group has performed an impairment assessment by considering historical repayment patterns and the future cash flow forecasts covering the contractual period of amounts receivable from related parties. The Group does not expect any default from them and is certain of their ability to pay their debts as they become due in the normal course of business and/or in any adverse economic and business conditions. Consequently, the probability of default is considered negligible and the Group has not accounted for any impairment loss.

28. CONTINGENT LIABILITIES

  • Bank guarantees

    At 30 June 2021, the Group had no contingent liabilities in respect of bank guarantees arising in the ordinary course of business from which it is anticipated that a material liability would arise. The Group has not given guarantees to third parties in the ordinary course of business (2020 : Nil).
  • Legal claims

    The Group is not and has not been involved in any legal or arbitration proceedings (including any such proceedings which are pending or threatened of which the Group is aware) in the past 12 months which may have or have had a significant effect on the financial position of the Group.

29. CAPITAL COMMITMENTS

The Group entered into contractual commitments amounting to Rs 502m (2020: Rs 870m) for the development and extension of investment properties.

30. EVENTS AFTER THE REPORTING DATE

Listing on the Official Market of the Stock Exchange of Mauritius

Ascencia Limited was listed on the Official Market of the Stock Exchange of Mauritius ("SEM") on 16 August 2021, after being previously listed on the Development & Entreprise Market (DEM) of the SEM. The Company submitted its application to the Listing Executive Committee on 11 June 2021 for the total of Class A shares and the 15,801,008 redeemable debentures in issue at the listing date to be migrated from the DEM to the Official Market. There was no new issue of shares at time of the migration.

Intention to acquire additional stake in The Beauvallon Shopping Mall Ltd

The Group intends to acquire the remaining stake of 50% in its joint venture, The Beauvallon Shopping Mall Ltd, by December 2021.
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