Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Explanatory Notes 30 SEPTEMBER 2020 15. NET INVESTMENT IN LEASES AND OTHER CREDIT AGREEMENTS GROUP Finance leases MUR m Other credit agreements MUR m Total MUR m 30 September 2020 Gross investment Within one year 1,167.0 7,072.2 8,239.2 After one year and before five years 2,133.5 - 2,133.5 After five years 114.6 - 114.6 3,415.1 7,072.2 10,487.3 Unearned future finance income (403.8) (894.7) (1,298.5) 3,011.3 6,177.5 9,188.8 Expected credit loss (203.0) (611.7) (814.7) 2,808.3 5,565.8 8,374.1 Present value of minimum lease payments before impairment analysed as follows Within one year 989.0 3,523.0 4,512.0 After one year and before five years 1,912.3 2,654.5 4,566.8 After five years 110.0 - 110.0 3,011.3 6,177.5 9,188.8 GROUP Finance leases MUR m Other credit agreements MUR m Total 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 before impairment 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 129.0 - 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). 2020 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m Performing 1,861.0 - - 1,861.0 Watchlist - 757.0 - 757.0 Non-performing - - 393.3 393.3 1,861.0 757.0 393.3 3,011.3 114