Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 15. NET INVESTMENT IN LEASES AND OTHER CREDIT AGREEMENTS GROUP Finance leases Other credit agreements Total MUR m MUR m MUR m 30 September 2019 Gross investment Within one year 1,293.1 3,915.4 5,208.5 After one year and before five years 2,375.1 2,885.9 5,261.0 After five years 136.2 - 136.2 3,804.4 6,801.3 10,605.7 Unearned future finance income (503.8) (859.7) (1,363.5) 3,300.6 5,941.6 9,242.2 Expected credit loss/allowance for credit impairment (119.3) (353.8) (473.1) 3,181.3 5,587.8 8,769.1 Present value of minimum lease payments analysed as follows Within one year 1,076.0 3,359.8 4,435.8 After one year and before five years 2,095.6 2,581.8 4,677.4 After five years 129.00 - 129.0 3,300.6 5,941.6 9,242.2 Net investment in leases Credit quality The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s internal credit rating system and year end stage classification. The amounts presented are gross of impairment allowances. Details of the Group’s internal grading system and policies on whether ECL allowances are calculated on an individual or collective basis are set out in Note 4.1 (d). 2019 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m Performing 2,887.0 - - 2,887.0 Watchlist - 238.2 - 238.2 Non-performing - - 175.4 175.4 2,887.0 238.2 175.4 3,300.6 Gross carrying amount An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to finance leases is as follows: 2019 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m At 1 October 2018 2,684.3 227.1 243.5 3,154.9 New assets originated or purchased 1,219.5 74.7 5.8 1,300.0 Assets derecognised or repaid (excluding write offs) (974.2) (87.8) (88.3) (1,150.3) Transfers to Stage 1 92.5 (70.6) (21.9) - Transfers to Stage 2 (104.8) 110.8 (6.0) - Transfers to Stage 3 (30.3) (16.0) 46.3 - Amounts written off - - (4.0) (4.0) At 30 September 2019 2,887.0 238.2 175.4 3,300.6 CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 113