annual-report-FY2020

347 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 33. Financial Instruments (contd.): (c) Credit risk related to financial services business (contd.) Impairment loss The expected credit loss allowance provision is determined as follows: Rupees crores Particulars Performing Loans - 12 month ECL Underperforming loans - ‘lifetime ECL not credit impaired’ Impaired loans - ‘lifetime ECL credit impaired’ Total Gross Balance as at 31 st March, 2020 ..................................... 60,435.96 7,888.40 6,951.00 75,275.36 Expected credit loss rate ......................................................... 0.99% 10.74% 30.53% Carrying amount as at 31 st March, 2020 (net of impairment provision)................................................................................... 59,835.42 7,040.95 4,829.13 71,705.50 Gross Balance as at 31 st March, 2019 ..................................... 57,409.75 6,812.10 5,059.83 69,281.68 Expected credit loss rate ......................................................... 1.22% 11.94% 35.35% Carrying amount as at 31 st March, 2019 (net of impairment provision) .................................................................................. 56,847.17 6,134.45 4,147.64 67,129.26 Level of Assessment - Aggregation Criteria The financial services business recognises the expected credit losses on a collective basis that takes into account comprehensive credit risk information and considers the economic and risk characteristics, pricing range and sector concentration. Reconciliation of loss allowance provision for Retail and SME loans Rupees crores Particulars 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Balance as at 1 st April 2018 ...................................................... 560.55 837.63 1,886.84 3,285.02 — Transferred to/from 12 months ECL.................................... 325.77 (186.68) (139.09) — — Transferred to/from lifetime ECL not credit impaired...... (50.03) 140.29 (90.26) — — Transferred to/from lifetime ECL credit impaired............. (17.84) (122.96) 140.80 — Loans that have been derecognised during the period........ (67.66) (124.80) (565.58) (758.04) New loans originated during the year.................................... 321.62 121.81 163.55 606.98 Write-offs................................................................................... (0.02) (2.34) (907.86) (910.22) Net remeasurement of loss allowance.................................... (509.81) 14.70 423.79 (71.32) Balance as at 31 st March 2019 . ................................................ 562.58 677.65 912.19 2,152.42 Rupees crores Particulars 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Balance as at 1 st April 2019 ...................................................... 562.58 677.65 912.19 2,152.42 — Transferred to/from 12 months ECL.................................... 171.49 (117.45) (54.04) — — Transferred to/from lifetime ECL not credit impaired...... (37.22) 47.88 (10.66) — — Transferred to/from lifetime ECL credit impaired............. (12.04) (134.49) 146.53 — Loans that have been derecognised during the year............ (52.75) (90.15) (164.73) (307.63) New loans originated during the year.................................... 262.67 96.01 104.30 462.98 Write-offs................................................................................... — (0.02) (322.58) (322.60) Net remeasurement of loss allowance.................................... (294.19) 368.02 1,510.86 1,584.69 Balance as at 31 st March 2020 . ................................................ 600.54 847.45 2,121.87 3,569.86