The Company manages the net negative liquidity gaps through its undrawn bank facilities. COMPANY Up to 3 months 3 - 6 months 6 - 12 months 1 to 5 years Over 5 years Total 30 September 2022 MUR m MUR m MUR m MUR m MUR m MUR m Assets Cash and bank balances 593.3 – – – – 593.3 Deposits with banks 2.1 2.1 133.0 148.0 220.2 505.4 Net investment in leases and other credit agreements 1,652.0 1,276.7 2,086.0 5,036.7 155.1 10,206.5 Loans and advances 1,480.8 1,094.3 2,049.0 6,277.6 – 10,901.7 Investment securities – 0.8 119.6 – – 120.4 Other assets 291.6 0.9 58.3 – – 350.8 Total assets 4,019.8 2,374.8 4,445.9 11,462.3 375.3 22,678.1 Liabilities Bank overdrafts 5.3 – – – – 5.3 Other borrowed funds 3,529.8 479.5 3,303.4 4,269.5 281.3 11,863.5 Other liabilities 731.0 93.0 22.4 493.3 – 1,339.7 Lease liabilities 11.1 11.2 22.2 171.5 88.3 304.3 Total liabilities 4,277.2 583.7 3,348.0 4,934.3 369.6 13,512.8 Net liquidity gap* (257.4) 1,791.1 1,097.9 6,528.0 5.7 9,165.3 *The Company manages the net negative liquidity gaps through its undrawn bank facilities. 4.2 Capital risk management The primary objective of the Group’s and the Company’s capital management is to maximise shareholders’ value. The Company aims at distributing an adequate dividend whilst ensuring that sufficient resources are maintained to continue as a going concern and for expansion. The Group and the Company manage their capital structure and make adjustments in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The ratio of net debt to equity is used to monitor capital and the ratio is kept at a reasonable level. For the purpose of capital management, net debt includes other borrowed funds net of cash and bank balances. Equity consists of stated capital, retained earnings and other reserves. The Group monitors its Capital Adequacy Ratio (CAR) on a regular basis and uses the latter as a key metric to assess its robustness to sustain economic shocks in the period under review, despite this significant increase in the impairment charges, the Capital Adequacy Ratio remained at a very reasonable level. The Company, being licenced by the regulatory authority as a payment service provider is exposed to externally imposed capital requirement. The Company is required to maintain at all times a minimum stated unimpaired capital requirement of MUR 5million after deducting its accumulated losses. As at reporting date, the Company is in adherence to the externally imposed capital requirement. GROUP COMPANY Sep-23 MUR m Sep-22 MUR m Sep-23 MUR m Sep-22 MUR m Debt (note 13, 23 and 27) 13,602.4 12,017.2 13,670.3 12,076.5 Less: Cash balance (note 13) (397.8) (681.8) (304.7) (593.3) 13,204.6 11,335.4 13,365.6 11,483.2 Equity 5,815.8 4,969.2 5,605.4 5,138.5 Net debt/equity ratio 2.3 2.3 2.4 2.2 The net debt to equity ratio has remained unchanged for the Group and increased from 2.2 times in 2022 to 2.4 times in 2023 for the Company. 137 OUR YEAR AT A GLANCE OUR PEOPLE GOVERNANCE FINANCIAL STATEMENTS
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