REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER Goodwill The discount rate calculation is based on the specific circumstances of the Group and is derived from its weighted average cost of capital (WACC) of 7.63% (2021: 6.11%). The WACC takes into account both debt and equity. Trademarks The discount rate calculation is based on the specific circumstances of the Company and is derived from its weighted average cost of capital (WACC) of 6.65% (2021: 5.12%). The WACC takes into account both debt and equity. The Directors believe that any reasonably possible change in key assumptions on which recoverable amount is based would not cause the aggregate carrying amount of trademarks and goodwill of Edena Group to exceed their aggregate recoverable amount. 7. INVESTMENTS IN SUBSIDIARIES (a) Unquoted THE COMPANY 2022 MUR '000 2021 MUR '000 At 1 July 1 478 976 1 183 246 Addition 442 50 Impairment* (442) – (Decrease)/increase in fair value (100 037) 295 680 At 30 June 1 378 939 1 478 976 * An additional investment made in a subsidiary company namely, The (Mauritius) Glass Gallery Ltd, has been impaired during the year. Investments in subsidiaries are classified as financial assets measured at fair value through other comprehensive income. The Company has made an irrevocable election to classify the equity investments at fair value through other comprehensive income rather than through profit or loss because it is considered to be more appropriate for these strategic investments. Investments in subsidiaries comprise unquoted equity securities and are measured at fair value in the Company’s separate financial statements. In financial year ended 30 June 2021, with a steady economic recovery, the future cash flows forecast were adjusted positively, thereby resulting in an increase in fair value of Euro 4.5m equivalent to MUR 228.3m. Moreover, with the appreciation of the MUR vs Euro, a gain of MUR 158.4m was accounted upon retranslation of the Euro denominated investment. In financial year ended 30 June 2022, with a steady economic recovery, the future cash flows forecast were adjusted positively, thereby resulting in an increase in fair value of Euro 326.7k equivalent to MUR 15.1m. However, with the depreciation of the MUR vs Euro, a loss of MUR 107.8m was accounted upon retranslation of the Euro denominated investment. On 16 June 2022, the Company acquired an additional 24% of the issued shares of The (Mauritius) Glass Gallery Ltd for a purchase consideration of USD 10 000 equivalent to MUR 442 000. The Group derecognised the accumulated share of loss attributable to the non-controlling interests and recorded a decrease in equity attributable to owners of the Company of MUR 9 477 000. The effect of changes in the ownership interest on the equity attributable to owners of the Group is summarised as follows: 2022 MUR '000 Cash consideration paid to non-controlling interests 442 Add: Carrying amount of accumulated share of loss of non-controlling interests acquired 9 035 Adjustment recognised in retained earnings 9 477 6. INTANGIBLE ASSETS (continued) (b) Details of the Company’s subsidiaries are as follows: Name of company Country of operation and incorporation Year ended Main business Class of shares held Share capital (MUR) Percentage holding and voting power The Company Other Group companies 2022 2021 2022 2021 Edena S.A. Réunion 30 June Bottling and sale of soft drinks, table water and alternative beverages Ordinary 138 594 435 100.00% 100.00% – – Espace Solution Réunion S.A.S. Réunion 30 June Distributor of beverages and other commodities Ordinary 54 313 672 – – 100.00% 100.00% Helping Hands Foundation Mauritius 30 June Charitable institution Ordinary 10 000 48.00% 48.00% 52.00% 52.00% MBL Offshore Ltd (ii) Mauritius 30 June Investment holding Ordinary 27 215 400 100.00% 100.00% – – Phoenix Beverages Overseas Ltd Mauritius 30 June Export of beverages Ordinary 25 000 99.96% 99.96% – – Phoenix Camp Minerals Offshore Ltd Mauritius 30 June Investment holding Ordinary 86 100.00% 100.00% – – Phoenix Distributors Ltd (ii) Mauritius 30 June Distributor of beverages Ordinary 206 000 97.33% 97.33% – – Phoenix Foundation Mauritius 30 June Charitable institution Ordinary 1 000 100.00% 100.00% – – Phoenix Réunion SARL Réunion 30 June Distributor of beverages and other commodities Ordinary 342 640 – – 100.00% 100.00% SCI Edena Réunion 30 June Property holding Ordinary 40 250 – – 100.00% 100.00% The (Mauritius) Glass Gallery Ltd (i) Mauritius 30 June Manufacture and sale of glass related products Ordinary 5 110 000 100.00% 76.00% – – The Traditional Green Mill Ltd Mauritius 30 June Restaurants Ordinary 50 000 100.00% 100.0% – – Note: (i) Change in shareholding did not result in change in control for this subsidiary. (ii) Dormant companies NOTES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 169 168 Phoenix Beverages Limited Integrated Report 2022 Phoenix Beverages Limited Integrated Report 2022
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