Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD The RMAC assesses the effectiveness of the external audit process via feedback received from the management team and the chairmen of the other audit committees of the Group. Areas of improvement are thereafter discussed with the external auditor. The Group has implemented a policy for the provision of non-audit service by the external auditor. The objectives of the policy are: • To ensure that neither the nature of service nor the level of reliance placed on it by the Group could be perceived to impair the independence and objectivity of the external auditor’s opinion on financial statements. • To establish a straightforward and transparent process and reporting mechanism to enable the RMAC to monitor and control the independence of the external auditors and compliance with this policy. • To avoid unnecessary restrictions on the purchase of services from the external auditors who are expected to provide a higher quality and a more cost effective service than other providers. For the year under review, the fees paid to the external auditors for non-audit work are set out on page 56. To guarantee objectivity and independence, the Board ensures that the team providing non-audit services is different from the one providing audit services. 6. HUMAN RESOURCES The human resource initiatives of the Group are set out on pages 26 to 27. 7. PROFILES OF SENIOR EXECUTIVE TEAM The profiles of the senior executive team can be found on pages 28 to 29. 8. OTHER MATTERS 8.1 Related party transactions Please refer to page 146 of the Annual Report. 8.2 Management agreements The Company has no management contracts. 8.3 Dividend Policy An interim dividend is usually declared in May and paid in June and a final dividend is declared in December and paid in January. The payment of dividends is subject to the net profits of the Company, its cash flow and its needs with regard to capital expenditure. The Board had decided not to declare any interim dividend in May 2020, given the precarious environment and uncertainties that the Group was facing at that time. As these conditions continue to prevail and given the drop in PAT from continuing operations, the Board has resolved not to declare a final dividend for the year under review. The Board will continue to monitor the situation very closely and will adapt its dividend pay-out accordingly. 8.4 Donations The Company did not make any political donations during the year under review. 8.5 Corporate social responsibility (CSR) and environmental issues Cim CSR Fund Ltd was set up on 12 April 2016 under the laws of Mauritius pursuant to the Companies Act 2001. Cim CSR Fund Ltd receives annual statutory contributions from all entities within the Group for the purposes of corporate social responsibility (“CSR”). The Group’s CSR activities which reflect its commitment to creating sustainable value for the social, environmental and economic well-being of society are set out on pages 40 to 43. Information on the major projects undertaken by Cim CSR Fund Ltd is available for consultation on https://www.cim. mu/corporate-engagement.html. Tioumitra Maharahaje For Cim Administrators Ltd Company Secretary 28 December 2020 55