101 I N T E G R A T E D R E P O R T 2 0 2 1 2. ACCOUNTING POLICIES (CONT’D) 2.6 Going Concern and COVID-19 outbreak (Cont’d) (i) Health and Safety Measures The Group values the health and safety of its employees and its customers alike. In the context of COVID-19 the following measures have been taken: • Set ups at head office and all sub-offices have been adapted to ensure appropriate social distancing and all sanitary measures are in line with guidelines issued by the authorities. Glass/plexiglass shields were installed in all our counters as a measure of additional protective barrier to the current Personal Protective Equipment (PPE) issued to staff. Cleaning protocols at all our sites have been reviewed and tightened to mitigate any risk of spread. • The Work From Home (WFH) plan has been rolled out since first lockdown with practical guidelines issued to staff to manage the WFH experience whilst ensuring confidentiality of information. Some staff are working from office on rotation basis as per the business / operational requirements to ensure business as usual. • The Group HR has put in place communication strategies to send regular messages to staff, customers and other stakeholders, including communication campaigns on sanitary measures and preventive actions in relation to the COVID-19 pandemic. Staff have been encouraged to favour digital communication, virtual meetings and video conferences as far as possible. • The Group has also put in place protocols for preparedness and response plan in case of detection of any COVID-19 case. (ii) Credit Risk Framework review Since the first lockdown, CFSL had already reviewed and bolstered its credit risk framework. During the year under review, the debtors monitoring committee and the risk analytics forum have been regularly analysing the exposure portfolios on a forward-looking basis with a view to anticipating potential non-performers and assessing Expected Credit Losses (ECL) thereon. Reviews and scenario analysis have also been conducted to ensure adequacy in provisioning. (iii) Capital Adequacy Ratio (“CAR”) monitoring The Group’s CAR hovers well above the Basel’s minimum requirement of 8%. Management is of the view that there is sufficient buffer and headroom to ensure that the Group is adequately capitalised to withstand the impacts of COVID-19. (iv) Liquidity monitoring The Group’s Treasury function continues to play a central role in monitoring and steering the Group’s cash and liquidity situation on a daily basis to ride out the crisis during the year. The liquidity position of the Group has remained strong and as at 30 September 2021, the Group had cash and cash equivalents together with bank deposits and treasuries approximating MUR 1Bn. Post the first lockdown and during the last 12 months, the Group has managed diligently its collection to ensure regular decent inflows, impacting positively on its liquidity position. (v) Client relationship management CFSL has continued to focus its efforts on mitigating downside risk as well as maintaining the competitiveness of existing businesses and securing relationships with customers that have been built over many years. The COVID-19 pandemic has precipitated certain events and acted as a catalyst in boosting digital initiatives. CFSL has launched during the year, an enhanced version of the mobile application of “Mo Finans” for the benefit of our customers and harnessing the benefits of digital transformation. The accelerating roll-out of COVID-19 vaccines have given much hope to the world. In Mauritius as at 30 September 2021 over 60% of the overall population (82% of the local adult population) were already fully vaccinated. With the opening of borders as from 1 October 2021, the domestic economy is expected to recover and gain momentum gradually. The economic growth is projected at close to 5% for the year 2021 and 6.5% for the year 2022. However, with the spectre of new variants still threatening to derail the economic recovery, the COVID-19 pandemic continues to pose a threat in Mauritius and to the business. The Group will continue to follow the various government policies and advices. The Group will also continue to operate in the best and safest way possible by adopting all necessary measures to mitigate the downside risks caused by the pandemic while ensuring the safety of its employees and clients. Based on the above, management is satisfied that there is no material uncertainty that casts significant doubt upon the Group’s ability to continue as a going concern. Explanatory Notes 30 SEPTEMBER 2021 E x p l a n a t o r y N o t e s
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