Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 15. NET INVESTMENT IN LEASES AND OTHER CREDIT AGREEMENTS (CONT’D) Expected credit loss 2019 GROUP Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m At 1 October 2018 21.0 2.4 106.1 129.5 New assets originated or purchased 9.2 2.3 7.0 18.5 Assets derecognised or repaid (excluding write offs) (8.2) (1.4) (26.2) (35.8) Transfers to Stage 1 5.5 (1.1) (4.4) - Transfers to Stage 2 (0.7) 1.8 (1.1) - Transfers to Stage 3 (0.3) (0.2) 0.5 - Transferred between stages (4.5) (0.5) 16.1 11.1 Amounts written off - - (4.0) (4.0) At 30 September 2019 22.0 3.3 94.0 119.3 Other credit agreements 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 4,680.3 - - 4,680.3 Watchlist - 617.9 - 617.9 Non-performing - - 643.4 643.4 4,680.3 617.9 643.4 5,941.6 Gross carrying amount An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to finance leases and other credit agreements is as follows: 2019 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m At 1 October 2018 3,891.0 487.9 522.8 4,901.7 New assets originated or purchased 3,560.4 418.1 182.4 4,160.9 Assets derecognised or repaid (excluding write offs) (2,569.1) (314.3) (166.5) (3,049.9) Transfers to Stage 1 69.8 (63.5) (6.3) - Transfers to Stage 2 (155.1) 160.1 (5.0) - Transfers to Stage 3 (116.7) (70.4) 187.1 - Amounts written off - - (71.1) (71.1) At 30 September 2019 4,680.3 617.9 643.4 5,941.6 Expected credit loss 2019 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m At 1 October 2018 11.6 2.0 286.7 300.3 New assets originated or purchased 10.8 2.1 28.1 41.0 Assets derecognised or repaid (excluding write offs) (7.7) (1.4) (41.0) (50.1) Transfers to Stage 1 0.2 (0.2) - - Transfers to Stage 2 (0.5) 0.6 (0.1) - Transfers to Stage 3 (0.4) (0.3) 0.7 - Impact of year end ECL of exposures transferred between stages - - 133.7 133.7 Amounts written off - - (71.1) (71.1) At 30 September 2019 14.0 2.8 337.0 353.8 CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 114