Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Explanatory Notes 30 SEPTEMBER 2020 16. LOANS AND ADVANCES (CONT’D) GROUP Sep-20 MUR m Sep-19 MUR m Receivable from customers 359.9 430.6 Fund of guarantee (140.5) (149.0) 219.4 281.6 Fund of guarantee represents the portion of the receivables from customers for which the Company has not financed. (ii) 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). 2020 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m Performing 196.4 - - 196.4 Watchlist - 6.9 - 6.9 Non-performing - - 16.1 16.1 196.4 6.9 16.1 219.4 2019 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m Watchlist - 261.1 - 261.1 Non-performing - - 20.5 20.5 - 261.1 20.5 281.6 (iii) 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: 2020 Stage 1 Stage 2 Stage 3 TOTAL MUR m MUR m MUR m MUR m At 1 October 2019 - 261.1 20.5 281.6 New assets originated or purchased 62.5 6.2 - 68.7 Assets derecognised or repaid (excluding write offs) (86.3) (37.7) (2.2) (126.2) Additional ECL charge - - - Transfers to Stage 1 - - - - Transfers to Stage 2 - - - - Transfers to Stage 3 - (2.5) 2.5 - Impact of impairment losses and year end ECL of exposures transferred between stages 220.2 (220.2) - - Amounts written off - - (4.7) (4.7) At 30 September 2020 196.4 6.9 16.1 219.4 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) At 30 September 2019 - 261.1 20.5 281.6 (c) Factoring receivables before impairment (i) Factoring receivables breakdown before impairment: 122