REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER (c) The following are the amounts recognised in profit or loss: THE GROUP THE COMPANY 2022 MUR '000 2021 MUR '000 2022 MUR '000 2021 MUR '000 Depreciation expense of right-of-use assets 98 203 102 917 61 584 54 436 Interest expense on lease liabilities 15 213 17 444 13 411 15 081 Total amount recognised in profit or loss 113 416 120 361 74 995 69 517 During the year under review, the Group and the Company have taken exemption for short-term leases amounting to MUR 37.8m (2021: MUR 37.1m). These leases were taken for a period of 6-12 months (2021: 6-12 months). In 2022, total cash outflows for leases (including short term lease) amounted to MUR 151m (2021: MUR 155m) for the Group and MUR 112m (2021: MUR 104m) for the Company. Non-cash additions to right-of-use assets and lease liabilities amounted to MUR 29.4m (2021: MUR 57.5m) for the Group and MUR 29.4m (2021: MUR 38.8m) for the Company. The following provides information on the Group’s and the Company’s lease payments, including the magnitude in relation to fixed payments: THE GROUP THE COMPANY 2022 Fixed payments MUR ‘000 2021 Fixed payments MUR ‘000 2022 Fixed payments MUR ‘000 2021 Fixed payments MUR ‘000 Fixed rent 113 372 118 209 74 482 66 581 (d) The Group has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. 19. LEASES (continued) Set out below are the undiscounted potential future rental payments relating to periods following the exercise date of extension and termination options that are not included in the lease term: THE GROUP Termination options not expected to be exercised Within five years MUR '000 More than five years MUR '000 Total MUR '000 At 30 June 2022 215 120 25 029 240 149 At 30 June 2021 290 616 27 061 317 677 THE COMPANY Termination options not expected to be exercised Within five years MUR '000 More than five years MUR '000 Total MUR '000 At 30 June 2022 138 363 25 029 163 392 At 30 June 2021 167 971 27 061 195 032 Maturity Analysis THE GROUP THE COMPANY 2022 MUR ‘000 2021 MUR ‘000 2022 MUR ‘000 2021 MUR ‘000 Year 1 127 190 82 465 95 808 45 397 Year 2 57 268 125 689 32 041 94 308 Year 3 41 499 55 768 21 289 30 541 Year 4 13 979 45 231 12 063 19 589 Year 5 4 176 15 359 4 176 11 361 Onwards 76 881 83 976 76 881 81 056 320 993 408 488 242 258 282 252 Less: unearned interest (15 810) (21 745) (15 473) (21 008) 305 183 386 743 226 785 261 244 20. TAXATION (a) Income tax Income tax is calculated at 15% (2021: 15%) on the profit for the year as adjusted for income tax purposes. Tax rate in Réunion Island is at 26.5% (2021: 28%). Corporate Social Responsibility The Company is required to set up a CSR fund equivalent to 2% of its chargeable income of the preceding year to implement a CSR programme in accordance with its own CSR framework. Where the amount paid out of the CSR fund is less than the amount provided under the fund, the difference shall be remitted to the Director-General at the time of submission of the income tax return of the year under review. NOTES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 193 192 Phoenix Beverages Limited Integrated Report 2022 Phoenix Beverages Limited Integrated Report 2022
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