The Group and Company held collaterals on finance lease which include heavy equipments, vehicles and other equipments. The fair value of collaterals of impaired lease facilities is estimated at MUR 220.5m (2022: MUR 147.9m). The Group and Company may recover amounts not settled by the debtors from the customers for factoring facilities with recourse while the non-recourse factoring facilities are insured. Other credit agreements and loans with exposure of MUR 14,414m (2022: MUR 12,766m) are mitigated by insurance covers which are directly linked to the facilities and entered at the same time of the credit origination. Other credit agreements also contain the right for the Group and Company to recover the collateral which the Group and Company estimated not to be significant at recovery. Other credit agreements also contain the exposure in respect of credit cards not backed by collaterals. (e) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Group and Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Group and Company on acceptable terms. To limit this risk, management has arranged for diversified funding sources including corporate bonds and keeping committed credit facilities with banks. The Group and Company also maintain a certain level of cash and deposits with banks to cater for its liquidity needs. Contractual maturities of undiscounted cash flows of financial assets and liabilities GROUP Up to 3 months 3 - 6 months 6 - 12 months 1 to 5 years Over 5 years Total 30 September 2023 MUR m MUR m MUR m MUR m MUR m MUR m Assets Cash and bank balances 397.8 – – – – 397.8 Deposits with banks 136.7 – 130.4 220.0 – 487.1 Net investment in leases and other credit agreements 1,777.3 1,459.4 2,574.5 6,908.0 369.4 13,088.6 Loans and advances 2,307.1 1,136.9 1,947.2 6,502.7 2.3 11,896.2 Investment securities 177.8 – – 119.7 0.8 298.3 Other assets 502.8 – – – – 502.8 Total assets 5,299.5 2,596.3 4,652.1 13,750.4 372.5 26,670.8 Liabilities Bank overdrafts 180.3 – – – – 180.3 Other borrowed funds 5,865.5 487.8 459.9 6,118.4 280.4 13,212.0 Other liabilities 925.1 51.0 24.2 228.9 – 1,229.2 Lease liabilities 12.2 11.8 23.1 191.4 2.5 241.0 Total liabilities 6,983.1 550.6 507.2 6,538.7 282.9 14,862.5 Net liquidity gap (1,683.6) 2,045.7 4,144.9 7,211.7 89.6 11,808.3 135 OUR YEAR AT A GLANCE OUR PEOPLE GOVERNANCE FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy MzQ3MjQ5