4.1 Financial risk factors continued (d) Credit risk continued The Group’s and Company’s maximum exposure to credit risk at the reporting date was as follows: GROUP COMPANY 2024 MUR m 2023 MUR m 2024 MUR m 2023 MUR m Cash and bank balances 514.3 397.8 469.3 304.7 Deposits with banks 727.0 490.7 727.0 490.7 Net investment in leases and other credit agreements 11,645.3 10,056.6 11,645.3 10,056.6 Loans and advances 10,705.9 8,524.8 9,456.2 7,928.7 Other assets* 490.5 502.8 522.3 504.7 24,083.0 19,972.7 22,820.1 19,285.4 * Other assets exclude prepayments The Group and Company held collaterals on finance lease which include heavy equipment, vehicles and other equipment. The fair value of collaterals of impaired lease facilities is estimated at MUR 217.8m (2023: MUR 220.5m). 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 18,316m (2023: MUR 14,414m) 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 Up to 3 months MUR m 3 - 6 months MUR m 6 - 12 months MUR m 1 to 5 years MUR m Over 5 years MUR m Total MUR m GROUP 30 September 2024 Assets Cash and bank balances 514.3 – – – – 514.3 Deposits with banks 337.6 – 160.5 220.0 – 718.1 Net investment in leases and other credit agreements 1,861.2 1,614.9 2,889.0 8,153.7 504.4 15,023.2 Loans and advances 2,226.5 1,390.5 2,875.9 8,272.5 – 14,765.4 Investment securities 67.9 – – 119.8 0.8 188.5 Other assets* 490.5 – – – – 490.5 Total assets 5,498.0 3,005.4 5,925.4 16,766.0 505.2 31,700.0 Liabilities Bank overdrafts 116.8 – – – – 116.8 Other borrowed funds 4,143.0 1,527.9 2,469.7 8,275.0 280.8 16,696.4 Other liabilities 1,026.3 85.8 13.0 34.0 – 1,159.1 Lease liabilities 13.5 13.6 27.0 132.2 0.3 186.6 Total liabilities 5,299.6 1,627.3 2,509.7 8,441.2 281.1 18,158.9 Net liquidity surplus 198.4 1,378.1 3,415.7 8,324.8 224.1 13,541.1 Explanatory Notes 30 September 2024 4. FINANCIAL RISK MANAGEMENT continued * Other assets exclude prepayments 148
RkJQdWJsaXNoZXIy MzQ3MjQ5