CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 17. INVESTMENT IN FINANCIAL ASSETS GROUP COMPANY Sep-18 Sep-17 Sep-18 Sep-17 MUR m MUR m MUR m MUR m Available for sale investments (a) 1.2 1.8 1.2 1.8 Government bonds 8.0 8.0 - - Foreign currency derivatives - 12.0 - 13.3 Debt instruments at fair value through profit or loss 1,589.7 - 1,589.7 - 1,598.9 21.8 1,590.9 15.1 GROUP COMPANY Sep-18 Sep-17 Sep-18 Sep-17 MUR m MUR m MUR m MUR m (a) Available for sale investments Level 3 Level 3 Level 3 Level 3 Non current Available for sale investments At 1 October 1.8 2.4 1.8 2.4 Impairment charge (0.6) (0.6) (0.6) (0.6) At 30 September 1.2 1.8 1.2 1.8 The Company has an available for sale investment in a company based in India. Each year a fair value assessment of the investment is done using the Net Assets Approach. The Net Assets Approach uses the following technique: The value of the investee is determined on the basis of the value of the assets and liabilities as disclosed in its financial statements as at the reporting date. The carrying amount is adjusted for the increase or decrease in the net asset value of the investee. Impairment charge has been recognised as the fall in net assets has been prolonged. (b) Foreign currency derivatives Foreign currency derivatives consist of forward contracts and currency swaps that have been fair valued and included in level 2 of the fair value hierarchy. These instruments are valued by calculated forward points models using mid market inputs. GROUP Sep-18 Sep-17 MUR m MUR m Forward foreign exchange contracts The notional principal amounts of the outstanding forward foreign exchange contracts are as follows: Forward foreign exchange contracts purchased 659.0 1,183.5 Forward foreign exchange contracts sold 660.0 159.3 GROUP / COMPANY Sep-18 Sep-17 MUR m MUR m (c) Debt instruments at fair value through profit or loss Level 1 Level 1 At 1 October - - Additions 1,591.2 - Disposals (18.2) - Fair value gain 3.0 - Interest accrued 13.7 - At 30 September 1,589.7 - The debt instruments, consisting of quoted bonds and notes, have been designated as financial assets at fair value through profit or loss as they are managed and their performance evaluated on a fair value basis in accordance with the Group’s documented risk management or investment strategy. The fair values of the quoted bond and notes have been based in price quotations at the reporting date and are classified under level 1 of the fair value hierarchy. 101 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018