CFSL Integrated Report 2021

185 I N T E G R A T E D R E P O R T 2 0 2 1 40. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONT’D) 30 September 2020 Carrying amounts Fair value 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 8,374.1 - - 8,753.8 8,753.8 Loans and advances Credit facilities 4,526.5 - - 4,714.9 4,714.9 Corporate credit facilities 109.3 - - 119.0 119.0 Investments securities - 8.1 - - 8.1 13,009.9 8.1 - 13,587.7 13,595.8 Financial liabilities not measured at fair value Other borrowed funds 9,836.6 - - 9,836.6 9,836.6 9,836.6 - - 9,836.6 9,836.6 Financial instruments for which the fair value approximates the carrying amount Financial assets Cash at bank balances 460.7 Deposits with banks 510.2 Loans and advances Factoring receivables 202.2 Card receivables 265.2 Investments securities 20.8 Other assets 313.2 1,772.3 Financial liabilities Other liabilities 1,372.0 For financial assets and financial liabilities that have a short-termmaturity, 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) 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 Group 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 2021. Explanatory Notes 30 SEPTEMBER 2021 E x p l a n a t o r y N o t e s Analysis of assets and liabilities Sep-20 MUR m Assets Cash and cash equivalents 120.5 Net assets 120.5 Gain on derecognition of subsidiaries Consideration received 118.4 Net assets disposed of (120.5) Cumulative exchange differences in respect of the net assets of the subsidiaries derecognised 15.6 13.5 Net cash inflow on derecognition of subsidiaries Consideration received in cash and cash equivalents 118.4 Less cash and cash equivalents derecognised (120.5) Net cash outflow (2.1) 41. DERECOGNITION OF SUBSIDIARIES In 2020 the Group derecognised Cim Ethiopia Ltd and Evripay Ltd being in winding up process. The results of the derecognition in the Group’s financial statements are as follows:

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