Annual Report 2019

Explanatory notes 30 SEPTEMBER 2019 43. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONT’D) Carrying amounts Fair value 30 September 2018 Level 1 Level 2 Level 3 Total MUR m MUR m MUR m MUR m MUR m Financial assets not measured at fair value Net investment in leases and other credit agreements 7,637.7 - - 7,663.4 7,663.4 Loans and advances Credit facilities 1,988.2 - - 2,000.6 2,000.6 Corporate credit facilities 266.8 - - 268.7 268.7 Investments in financial assets - - - - - 9,892.7 - - 9,932.7 9,932.7 Financial liabilities measured at fair value Foreign currency derivatives - - - - - Financial liabilities not measured at fair value Deposits from customers 3,426.6 - - 3,561.6 3,561.6 Other borrowed funds 5,949.8 - - 5,949.8 5,949.8 9,376.4 - - 9,511.4 9,511.4 Financial instruments for which the fair value approximates the carrying amount Financial assets Cash at bank balances 526.1 Deposits with banks 1,026.0 Loans and advances Factoring receivables 219.8 Card receivables 390.8 Investment in financial assets 1,598.9 Other assets 605.5 Financial liabilities Other liabilities 1,220.6 For financial assets and financial liabilities that have a short-term maturity, the carrying amounts, which are net of impairment, represent a reasonable approximation of their fair value. Such instruments include cash and bank balances, deposits with banks, factoring and card receivables and other liabilities. The fair value of the net investment in leases and and other credit agreements, credit facilities, corporate credit facilities (included in loans and advances), deposits from customers and other borrowed funds are estimated using cash flow models discounted at the relevant discount rate taking into consideration credit risk, foreign exchange risk, of default and loss given default estimates. As a result, these balances fall under Level 3 of the fair value hierarchy. Market observable data is used when appropriate and when such data is not available, the Company uses historical experience. The discount rates used represent the market rates. Refer to Note 17 for further details regarding financial assets measured at fair value. The Companies financial assets and liabilities approximates its fair value as at 30 September 2019. CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 155