For the year ended 30 June 2018, an amount of MUR 12.4M with respect to certain categories of assets have been written off due to existing structure and partitions were dismantled following renovations, replacement during renovations, defective and repair cost exorbitant.
For the year under review, an amount of MUR 3.4M with respect to certain categories of assets have been written off due to damage
Customer relations were amortised on an accelerated basis during the year.
(a) Customer relations
Customer relations represent that income stream that both investees are expected to generate based on the good relations that were previously developed and maintained with their customers.
(b) Non-compete agreement and licence
Non-compete agreement and licence relate to intangibles assets acquired upon acquisition of the ACF Group. These were fully amortised in the financial year June 2016.
(c) IMPAIRMENT TESTING OF GOODWILL
Carrying amount of goodwill allocated to ACML:
The Group has disclosed the key assumptions used (discount rate) to determine the recoverable amount of assets and CGUs.
Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating segments and is derived from its weighted average cost of capital ("WACC"). The WACC takes into account both debt and equity. A further 10% liquidity discount has been applied on the NPV.
Mandatory balances with the central bank are not available for use in the Bank's day-to-day operations. Mandatory balances with the Central Bank are based on the daily ratio applied for the maintenance of minimum rupee and foreign currency balances as at 30 June 2019, 2018 and 2017 respectively.
Receivable from subsidiary amounting to MUR 85M (2018: MUR 179M and 2017: Nil) bears interest at 3.60%, is unsecured and is repayable on demand. Receivable from subsidiary amounting to MUR 1M (2018 and 2017: Nil) is unsecured, interest free and payable on demand.
During the year under review, an impairment review has been performed on the amount due from subsidiaries, as a result of a fall in their financial performances. An impairment loss of MUR 103M has been recognised against the receivable balance. The annual impairment review has been based on a value in use calculation using cash flow projections from financial budgets approved by senior management covering a five-year period. No additional impairment is required.
The ageing of trade receivables is as follows:
The borrowings from the Central Bank of MUR 72.4m are unsecured and long-term with tenor days ranging from 573 to 1,088 days attracting interest rate of 0.68% for the year ended 2018;
The borrowings from the other banks of MUR 860.2m are from other local banks. Those borrowings are unsecured and short-term with minimum tenor days of 3 to 7 days along with interest rate ranging from 3.4% to 3.6% for the year ended 2018.
For the year under review, the borrowings from Central Bank of MUR 29.8M are secured and long-term with tenor days from 207 to 722 days attracting interest rate of 0.63%
The borrowings from the Central Bank are secured by the Bank's cash balances held with the Central Bank.
Included in 'Deposits from customers' accounts are deposits of MUR 790.2M (2018: MUR 558.6M and 2017: MUR 499.2M) held as collateral against loans and advances to the respective customers.