Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 16. LOANS AND ADVANCES (CONT’D) (c) Factoring receivables GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m Receivable from customers 430.6 363.3 - - Fund of guarantee (149.0) (123.0) - - 281.6 240.3 - - Fund of guarantee represents the portion of the receivables from customers for which the Group has not financed. (i) Credit quality - Factoring receivables 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 - - - - Watchlist - 261.1 - 261.1 Non-performing - - 20.5 20.5 - 261.1 20.5 281.6 (ii) Gross carrying amount - Factoring debtors An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to Credit facilities is as follows: 2019 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m At 1 October 2018 - 215.0 25.2 240.2 New assets originated or purchased - 92.8 - 92.8 Assets derecognised or repaid (excluding write offs) - (46.7) (4.7) (51.4) Additional ECL charge - - - - Transfers to Stage 1 - - - - Transfers to Stage 2 - - - - Transfers to Stage 3 - - - - Amounts written off - - - - At 30 September 2019 - 261.1 20.5 281.6 CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 119