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 2021, 2020 and 2019 respectively.

During the year ended 30 June 2021, an impairment review has been performed on the amount due from subsidiaries, as a result of a fall in its financial performance. The movement in impairment loss is as follows:

Receivable from subsidiary is nil (2020: MUR 922m and 2019: MUR 86m) bears interest at 3.60%, is unsecured and is repayable on demand. Receivable from subsidiary is nil (2020: MUR 1m and 2019: MUR 1m) and is unsecured, interest free and payable on demand.

At 30 June 2021, there was a receivable from a director of MUR 3.7m which was fully provided as management has assessed the recoverability to be doubtful.

The credit term is 30 days and the average credit period is 90 days.

Contract assets are initially recognised for revenue as per the agreement in place between the subsidiary and its customers. Upon invoicing of the fees, the amount recognised as contract assets are reclassified to trade receivables.

The ageing of trade receivables are as follows: