Page 169 - CJ 2019 INTEGRATED REPORT

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1 NOTES TO THE FINANCIAL
STATEMENTS
31 DECEMBER 2019 SIGNIFICANT ACCOUNTING POLICIES
General information
The The The principal principal activity of of the the the the Company Company is investment holding The The The principal principal accounting policies policies applied in in in in in in fin the the the the preparation of of these financial statements are set out below These policies policies apply to to the the the the the the Group and and Company Company and and have been consistently applied to all the the the years presented unless otherwise stated Basis of preparation In the the the the the the separate financial financial statements statements Currimjee Jeewanjee and and Company Company Company Limited is is referred referred to to to as as as the the the the the the “Company” whereas the the the the the the the consolidated financial financial statements statements comprise the the the the the the the Company Company Company and and and its subsidiaries (together referred referred to to to as as as as the the the the the the the “Group”) and the the Group’s interests fin in in associates The financial statements have been prepared fin in in in in in accordance with International Financial Reporting Standards (“IFRS”) and and and interpretations issued by the the IFRS IFRS IFRS IFRS Interpretations Committee applicable to companies reporting under IFRS IFRS IFRS IFRS except for for for IFRS IFRS IFRS IFRS 9 9 for for for one of of of its subsidiaries Island Life Assurance Co Co Ltd (ILA) which meets the the the the criteria for for for eligibility of of of of a a a a a a a a a a a a a a a a a a a temporary exemption exemption from the the the the the application of of of of IFRS IFRS IFRS 9 9 9 until 2023 The The exemption exemption is only eligible at at at ILA ILA level and and the the the the the financial financial financial statements statements statements of of of the the the the the Group Group should have have been been prepared prepared applying IFRS IFRS 9 9 to all entities fin in in fin fin the the the the the Group Group The The The financial financial financial statements statements statements also comply with the the the the the Mauritian Companies Act 2001 The The financial financial financial statements statements statements have have been been prepared prepared under the the the the historical cost convention as as as modified by the the the the revaluation of o freehold land and and and buildings investment properties financial financial assets assets at at at fair fair value value through through profit or or loss and and and financial financial assets assets at at at fair fair value value through through other comprehensive income During the the the the the year the the the the the Group Group and and and the the the the the Company made a a a a a a a a a a a profit o of of Rs Rs Rs Rs 438 122 000 000 000 000 (2018 (2018 –Rs 420 634 000) 000) and and and Rs Rs Rs Rs Rs Rs 127 602 000 000 000 000 000 000 (2018 (2018 (2018 - Rs Rs Rs Rs Rs Rs 399 659 000) 000) 000) respectively At the the the the the the the statement o of of financial position date the the the the the the the Group Group and and and and the the the the Company’s current current liabilities exceeded their current current assets by Rs Rs Rs Rs Rs Rs 3 3 3 022 447 000 000 000 000 000 000 (2018 (2018 (2018 - Rs Rs Rs Rs Rs Rs 2 2 2 2 2 2 2 2 2 060 100 000) 000) 000) and and Rs Rs 1 1 1 648 086 000 000 (2018 - Rs Rs 871 243 000) respectively The financial statements have been prepared on
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the the the the the going concern basis which assumes that the the the the the Group Group will continue continue fin in in in operational existence for for the the the the the foreseeable future and depends on
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the the the the the continued support of the the the the the Group’s bank The COVID-19 pandemic of of 2020 represents an an an an an unprecedented period of of uncertainty and and risk for business organizations worldwide As we experience these ambiguous times CJ has has stressed test its its its debt reduction plan starting with a a a a a a a a a a a a a a a a a a a a deep review of its its its cash flows forecast for for 2020 and has has taken some major decisions so so as as as as as to to be able to to meet its its its obligations in the short term The following are the key elements of this review:
• The key subsidiaries subsidiaries operating in in in in the the the Telecommunications and and Media sector remain resilient but we have preferred to to to be cautious and and assumed a a a a a a a a a a a a a reduction in in in in dividend receivable from these subsidiaries subsidiaries to to to the the the tune of Rs 90M for 2020 • The Energy sector on
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the the the the the the other hand hand is is negatively affected by by the the the the the the drop in in the the the the the the price of of petrol on
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the the the the the the world market As a a a a a a a a a a a a a a a result of of this this this a a a a a a a a a a a a a a a major write down on
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hand hand has has been booked by by the the the the the the associate in in in in early 2020 2020 to to to reflect this this this CJ has has not assumed any dividend from this this this investment in in 2020 • The other subsidiaries have also been assumed not to to to be be in in a a a a a a a position to to to pay any dividend to to to CJ in in 2020 • The The Hospitality sector is is experiencing a a a a a a a a a a a a a collapse of of revenues and and the the the the the short term perspective remain uncertain The The IKO (Mauritius) Hotel Ltd is is is is directly impacted CJ has approached the the the the the the bankers of of of of of the the the the the the hotel and and together with them will support the the the the the requirements of of of of funds of of of of this investments until required For 2020 an an an an amount of of of of Rs 100M is is is being planned • CJ has has arranged with with the the the Groups’ bankers to to to to to reschedule loan repayments of of Group Group companies to to to to to later part of of the the the year and has has committed to to to to to support its subsidiaries to to to to to enable them to to to to to operate without a a a a a a a a a a a a a a a a a cash shortage • Following the the sale of of of its its investments in in in in in in EM Vision Ltd CJ has has received received Rs Rs 700M as as as consideration in in in in in in early 2020 and has has has applied this this mainly towards reduction of of of of its its its debt A further amount amount of of of of Rs Rs 450M is is is is planned to to to to be received received in in in in in in in March 2021 and CJ has has arranged for a a a a a a a a a a a a a a a a a a bridging facility of of of this this this amount amount with the the banks to to to to enable it it it it it to to to to meet its its cash requirements during this challenging time • Finally the the the the board of of of CJ has decided not to declare any dividend for for 2020 unless there is is is is a a a a a a a a a a a marked improvement in in in performance This is is is is testimony of of of a a a a a a a a a a a coherent faith in in the the the the future of of of the the the the Group beyond this pandemic INTEGRATED REPORT 2019