Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 17. INVESTMENT IN FINANCIAL ASSETS GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m Available for sale investments (a) - 1.2 - 1.2 Equity instruments at FVTPL (b) 0.8 - 0.8 - Government bonds 8.1 8.0 - - Debt instruments at FVTPL (c) - 1,589.7 - 1,589.7 8.9 1,598.9 0.8 1,590.9 GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 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 1.2 1.8 1.2 1.8 Transfer to equity instruments at FVTPL (1.2) - (1.2) - Impairment charge - (0.6) - (0.6) At 30 September - 1.2 - 1.2 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. The investment has been transferred to equity instruments at FVTPL on adoption of IFRS 9. GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m (b) Equity instruments at FVTPL Level 3 Level 3 Level 3 Level 3 Non current At 1 October - - - - Transfer from available for sale investment 1.2 - 1.2 - Fair value loss (0.4) - (0.4) - At 30 September 0.8 - 0.8 - GROUP / COMPANY Sep-19 Sep-18 MUR m MUR m (c) Debt instruments at fair value through profit or loss Level 1 Level 1 At 1 October 1,589.7 - Additions - 1,591.2 Disposals (1,597.9) (18.2) Fair value gain 8.2 3.0 Interest accrued - 13.7 At 30 September - 1,589.7 The fair values of the quoted bond and notes have been based on price quotations at the reporting date and are classified under level 1 of the fair value hierarchy. These bond and notes carried interest of fixed rates. CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 122