Explore. Adapt. Innovate.: Integrated Report 2021

INTEGRATED REPORT
2021
EXPLORE.
ADAPT.
INNOVATE.
Dear Shareholder,
The board of directors (“the Board”) of CIEL Limited (“CIEL or the Group”) is pleased
to present its integrated report for the financial year ended 30 June 2021.
The annual meeting of the shareholders (“the Meeting”) will be held on

20 December 2021 at 14:00 hours at 5th Floor, Ebène Skies, Rue de l’Institut, Ebène.
Sanitary Measures:
For those shareholders who wish to attend the meeting in person, please be
reminded that strict sanitary measures will be applicable with the wearing of masks
being compulsory at all times. One-meter social distancing shall be maintained and
temperature screening will be done at the reception before accessing the lift/the
building in an effort to keep all our guests safe.
We thank you in advance for your collaboration.
Sincerely,

P. ARNAUD DALAIS JEAN-PIERRE DALAIS
CHAIRMAN GROUP CHIEF EXECUTIVE
About this Report
2021 was certainly another year of uncertainty, influenced by the ongoing Forward-Looking Statement
COVID-19 pandemic, but it was also a year of insights and a chance to The report contains forward-looking statements which, by their nature, involve risk and uncertainty
because they relate to future events and circumstances that may be beyond our control. We therefore
thoughtfully respond to the shock of early 2020. The global crisis did not advise readers to use caution in interpreting any forward-looking statements in this report.
stop the Group from looking to the future and continuing to work on the
quality and resilience of our portfolio. We have recalibrated the way we
do things to easily EXPLORE. ADAPT. INNOVATE. in our ever-changing and
dynamic environment. You will find a story of agility and strength in this
report and a positive outlook for the short to medium-term rebound of
CIEL Limited (“CIEL”).
A Note on the ‘Digital First’ Report

As a symbol of our commitment to sustainable measures in relation to reducing CIEL’s
carbon footprint, we are embarking on a movement to refrain from printing as far as
possible and invite you, our shareholder, to join us in our commitment to preserve our
natural resources for future generations.
If you have not yet opted for the digital format, we encourage you to fill in the ‘Application
for E-communications’ form which is included in this report and thank you in advance for
this choice. It will allow you to receive by e-mail, future notice of shareholders’ meetings,
annual reports, accounts, credit advices and other shareholder documents made available
to you in your capacity as shareholder of CIEL.
In the meantime, if you are a non-digital shareholder, you will receive a printed copy of
CIEL’s statutory annual report but may also view our enhanced digital report.
Integrated Reporting Principles

This report has been developed following the guidelines of the Value Reporting Foundation.
It does not cover all our operations in detail but rather provides key information regarding the
financial and non-financial outcomes of the business that are derived from the six capitals
laid out in the Integrated Reporting <IR> Framework. We have disclosed information that is
material to the sustainability of the business and could influence financial decisions made
by our stakeholders. We want you to understand how, through effective management,
strategic direction, and innovation, we create value for all our stakeholders over the short,
medium, and long term.
Reporting Scope and Process

This report covers the financial year ended 30 June 2021 in terms of performance. We have
included only what we believe is material, regarding risks, issues, and opportunities that
have or can have a significant positive or negative impact on the operations, profitability or
brand equity of the Group.
It was prepared by CIEL Head office, in close collaboration with our clusters’ management
teams. We welcome your feedback on the report and invite you to share your comments
or questions to: [email protected]
Table of Contents
01 02 03 04 05 06 07
Who We Are Insight from Our Value Performance Our ESG Focus Our Approach to Our Financial
our Leaders Creation Story Risk Management Statements
CIEL at a Glance 10 A Letter from 24 CIEL Strategy 32 CIEL Financial 48 E – Environmental 82 Managing our Risk 142 Independent 154
our Chairman, Overview S – Social 90 143 Auditor’s Report
Group Structure 14 CIEL Business Model 38 Monitoring Risk
P. Arnaud Dalais CIEL Textile 56 throughout the Group to the Shareholders
A Strategic Presence 16 People Dashboard 40 G - Corporate 98 of CIEL Limited
An Interview 26
in Emerging Markets CIEL Finance 60 Governance Key Responsibilities 144
with our CEO, Annual Audited 162
Report for each Stakeholder
A Unique Portfolio 18 Jean-Pierre Dalais CIEL Healthcare 64 Financial Statements
Other Statutory 132 Our Current Risk 145
of Brands CIEL Properties 68 Annexure A - 332
Disclosures Profile and Forward-
A Strong Network of 20 Looking Statement Directorships of
CIEL Hotels & Resorts 72 Statement of 135 Subsidiaries
Global Partners
CIEL Agro 76 Compliance Turning Crisis into 145
Opportunity: COVID-19
Statement 136
as Accelerator to our
of Director’s
Digital Transformation
Responsibilities
Journey
Certificate from 137
Principal Risks 146
the Company
Explained
Secretary
Corporate 138
Information
WHO
WE ARE
“
Our diversified portfolio is the fundamental
value proposition of the Group which allows
us to gain exposure and experience, not only
across our six clusters, but also across
emerging and developed markets.
- P. Arnaud Dalais
WHO WE ARE
CIEL at a Glance
6 10 +30 MUR 8.6 BN 109

Sectors Countries Brands Market Cap Year History
As at 30 June 2021
Headquartered
in Mauritius
31,308
Employees
10 11
WHO WE ARE
CIEL at a Glance
Key Figures Committed to Long-Term

As at 30 June 2021 Sustainable Development
MUR 17.9 BN MUR 617 M

Group Consolidated Revenue Profit Attributable to
MUR 21.0bn - 30 June 20202 Owners of the Parent
(MUR 1.7bn) - 30 June 20202
MUR 2.7 BN MUR 8.85

EBITDA1 Group NAV per Share
MUR 3.0bn - 30 June 20202 MUR 6.69 - 30 June 20202
MUR 446 M MUR 84 BN

Group Profit after Tax Total Assets
(MUR 2.2bn) - 30 June 2020 2
MUR 77bn - 30 June 2020
MUR 100 M
Invested in social projects
Earnings Before Interest, Taxation, Depreciation, Amortisation, Impairment,
1
through CIEL Foundation
Reorganisation Costs, and Fair Value gain on investment property
since 2005
2
30 June 2020 numbers are restated
Please see our Annual Financial Statements for more detailed information.
12 13
WHO WE ARE
Group Structure
CIEL Textile CIEL Finance CIEL Healthcare CIEL Properties CIEL Hotels & Alteo Limited
Limited Limited Limited Limited Resorts Limited TPC - Tanzania
Woven Bank One C-Care Ebène Skies SUN Resorts Transmara - Kenya
Aquarelle BNI MADAGASCAR Darné Ferney SUN managed
Anahita
CIEL Finance
CFL1
Data Services
Wellkin Hospital Ambre the Resort
Laguna C-Care Clinic La Pirogue
IPRO Anahita Golf &
Knits KIBO Capital Partners
C-Lab Long Beach Spa Resort
CDL IMG2 Sugar Beach
LCF Securities
Tropic Hygiea3 Tour Operators
MITCO
Knitwear Solea
CIEL Corporate World Leisure
Floreal
Services Ltd Holiday
FSM Azur Financial Services Branded
EM Insurance Brokers Four Seasons
Mauritius at Anahita
Shangri-La’s
Le Touessrok
Resort & Spa
Anahita Residences &
Villas
1
Discontinued as part of strategic partnership with SOCOTA Find out more - Full Group Structure
2
Exit from Health Membership Organisation (HMO) business
3
Exit from hospital business (post financial year end)
14 15
WHO WE ARE
A Strategic Presence in
Emerging Markets
France
Bangladesh
India
Uganda
Kenya
Tanzania Seychelles
Textile
Finance
Healthcare
Madagascar
Properties Mauritius
Botswana
Hotels & Resorts
Agro
South Africa
16 17
WHO WE ARE
A Unique Portfolio of Brands
KIBO
PA R T N E R S
PANTONE430C PANTONE1788C
18 19
WHO WE ARE
A Strong Network of
Global Partners
20 21
INSIGHT
FROM OUR
LEADERS
“
Our business models have adapted successfully
and we are raising the bar on digitalisation and
sustainability agendas.
- Jean-Pierre Dalais
INSIGHT FROM OUR LEADERS
A Letter from
our Chairman
Dear Shareholder, The Textile and Healthcare clusters demonstrated
remarkable agility in capturing new growth
Leadership and Teams
Our management teams have showed their agility
The past eighteen months have been challenging. opportunities and identifying trends in the new and talent through this difficult time and my
However, we have all been given a great operating context. The Finance cluster continued thanks go to our Group CEO, Jean-Pierre Dalais
opportunity to relook and rethink how we operate its resilient performance despite a difficult and Group CFO, L. J. Jérôme De Chasteauneuf
and prepare our Group for the future. operating environment. The newly created who supported them during this process.
Properties cluster’s results benefitted from the
Strategy non-cash revaluation of land from the Ferney We are also privileged to have a diverse set of board
As mentioned last year in our report, our immediate sustainable development. The Agro cluster, directors who bring valuable skills, perspectives
response to the pandemic was to ensure that consisting of our 20.96% share in Alteo Limited, and experience into the boardroom and have
our people were safe, cared for and equipped. had a remarkable turnaround, mainly due to worked hard at providing relevant guidance to the
Considerable focus was given to our portfolio and overall improved sugar production and prices executive management teams during the past
how to optimise operations to respond correctly across all operations. eighteen months.
to the headwinds experienced and brought about
by COVID-19, not to mention the already changing Considering the marked improvement in our Acknowledgements
trends experienced pre-COVID. financial performance and recognising the
Investment in our people has always been an
importance of dividends to our shareholders,
ongoing priority and we have set a bold ambition to
All through this process, we maintained a we had the ability to reward shareholders by
be # 1 in all our sectors through driving operational
strong conviction and belief in our strategy. paying a dividend of 5 cents per ordinary share,
excellence and a true spirit of partnership across
Our diversified portfolio is the fundamental based on the results of the financial year ended
our clusters and regions. We continue to grow our
value proposition of the Group which allows us June 2021. The Board has also taken the decision
presence in our regional markets, and I thank all
to gain exposure and experience, not only across that in the future, the dividends will be declared
our people for helping us reach for this ambition.
our six clusters, but also across emerging and annually in June (should the Company be in a
developed markets. position to declare a dividend), payable in July.
I would like to thank Marc-Emmanuel Vives,
This will allow the requisite visibility on the results
the outgoing CEO of CIEL Finance for his six years
We focussed on what was within our control and of the financial year when declaring a dividend.
of highly efficient and dedicated service. We wish
continued to deliver operational excellence along Lakshmana Bheenick, his successor, all the best in
with prudent and decisive cost management.
Risk and Governance
the new role.
We aimed at optimising our capital allocation Through times of crisis and uncertainty,
and unlocking value from our strong asset base the importance of an agile and reactive governance Outlook
through adjusting the corporate structure and risk management process is highlighted.
IMF forecasts show increased GDP growth of
and portfolio. The Group recognises the importance of identifying
3.2% in Madagascar, 6.6% in Mauritius and 9.5% in
and managing financial and non-financial risks
India for the calendar year 2021. We are however
Management took the decision to adjust the faced by the business. We consistently pursue good
“
cautious as to our expectations in the short-term.
corporate structure by splitting the Agro & governance and risk management intertwined
Property cluster into two distinct operating with key environmental and social targets,
With our long-standing diversification and
segments and the clusters were reported which are all dedicated to ensuring collective
presence in the region (Mauritius and Madagascar)
separately at the end of this financial year. This will conscientiousness throughout the Group.
and in South Asia, CIEL is well positioned to
We focussed on what allow the teams to prioritise and better optimise
each business’ contribution to CIEL Group’s profit. Our risk identification processes seek to identify
benefit from the recovery in global markets.
The Group is confident about our medium to long
was within our control We also pursued our efforts on optimising
risks from both a top-down strategic approach
and a bottom-up operational perspective.
term prospects.
and continued to deliver the portfolio and divested from certain assets In this way, we have moved climate change from
an emerging to a principal risk as it has the potential
Thanks to all these measures, decisive actions
such as the Kanuhura resort in the Maldives,
operational excellence the healthcare insurance business in Uganda and to change the world in which we live and operate,
and great team, I am proud to say that we are a
stronger and leaner organisation and ready for
dramatically. Tackling climate change, by taking
along with prudent recently the hospital and insurance businesses
in Nigeria. measures to limit its impact to manageable levels,
the future.
and decisive cost Performance

has become a key strategic priority for the Group.
management. Over the year, the resilience of the portfolio was We further continued our focussed management
of our cyber security and operational systems due
evident with a turnaround in our clusters, barring
Hotels & Resorts who took the full impact of the to the prevalence of work from home and the risks
pandemic in this financial year. that are associated with having employees being
off premises. Please see our risk management
P. ARNAUD DALAIS
We also took the opportunity to redefine and approach and corporate governance report for
more detailed information. CHAIRMAN
clarify strategies across our investment clusters.
24 25
Interview with our CEO

The last year has been extraordinary. was severe with the closure of our borders.
What are the key takeaways that will This situation led to a 15% year on year reduction
in Group revenue. Growth in the Healthcare and
guide your actions going forward?
Finance clusters helped to quasi-mitigate the
2021 has reinforced what a resilient Group we collapse in sales activity in the Hotels & Resorts
truly are. At the onset of the pandemic, and when cluster. The increase in EBITDA margin compared
the world was trying to adjust, we decided to to the prior year demonstrated the effectiveness
turn this crisis into an opportunity. One of our of the cost-saving initiatives deployed throughout
first objectives was to embark on a review of the the Group.
Group’s strategy and the quality of our portfolio
of businesses. Our ambition was to emerge out On the financing front, SUN Limited (“SUN”)
of this situation as a much leaner and more agile secured MUR 2.3bn of initial financial support
organisation. I am pleased to report that we have from the Mauritius Investment Corporation out
achieved this goal thanks to our ability to rapidly of a total approved funding line of MUR 3.1bn.
adjust costs and refocus our core activities with This assisted in reducing the Group’s indebtedness
the highest growth potential for a post-Covid era. and allowed us to meet the refinancing of SUN’s
This would not have been optimal without the notes’ repayment scheduled for the end of the
successful longer-term refinancing of our balance 2021 calendar year.
sheet over the last year, thereby providing us
the adequate financial resources to accelerate As part of our strategic review, we identified
our development. several areas in our portfolio that could be
optimised and made the decision to divest from
I was impressed by the capacity of our teams to certain non-core assets. Notably, we sold the
overcome what was the worst storm we have ever Kanuhura resort in the Maldives, exited from the
had to go through. The spirit that has emerged healthcare insurance business in Uganda and from
is positive and inspiring and will allow us to be the hospital and insurance activities in Nigeria.
primed for this fast-changing world.
Furthermore, our fashion business through
Our Group is uniquely positioned in Healthcare, its subsidiary Aquarelle International Limited,
a great differentiator brought to light by entered into a strategic partnership with
the pandemic. Our regional positioning is the SOCOTA Group in Madagascar for the
already strong but opportunities for growth creation of the largest woven fabric mill in the
abound not only in this cluster, but across all Indian Ocean region.
our other businesses. Our fashion activities are
benefitting from the increasing supply chain shift What did you learn in this past year?
out of China. Our banking operations showed
In terms of lessons learned, last year was a
“
continued progress and stronger balance sheets in
phenomenal leadership test on many levels,
a difficult environment. More recently, we set
notably of resilience and decisiveness. There was
the right foundation to hasten the growth of our
no rule book for what we have been through
property cluster with the objective of unlocking
but the exceptional team we have made all the
value from our assets. Finally, our share in Alteo
I was impressed by the capacity of our teams Limited performed well as sugar prices and
difference as we all rose to the challenge.
to overcome what was the worst storm we have production improved across their geographies.
We are a relatively large and diversified group in
the region, and yet we managed to remain agile
ever had to go through. The spirit that has emerged I believe that we have effectively demonstrated
resilience, agility and innovation by weathering
and use our diversity as a strength. Each of our
is inspiring and will conquer the challenges in this the last eighteen months well. Our business
entities took the appropriate decisions with the
objective of maintaining the financial health of
models have adapted successfully, and we are raising
fast-changing world. the bar on digitalisation and sustainability agendas.
the Group and ensuring the health and safety
of our people and customers. These priorities
The battle is not completely won but I feel greatly
were endorsed by all our teams with the end
encouraged by what we have achieved as a Group.
goal of bringing us out of the crisis fitter,
leaner and stronger.
How would you describe the Group’s
performance in the last year? I am convinced that in today’s world, being agile
This year proved extremely difficult for the hotel and able to act fast will make a huge difference.
industry worldwide and the impact on Mauritius
26 27
Interview with our CEO

Please give an update on material And of course, our people are integral to the
issues and risks. entrepreneurial spirit of CIEL. They leverage
our strategy and ensure we fulfil our vision
The continuation of the pandemic is likely to
to ‘Go Beyond’. This year we conducted an
have a significant and prolonged impact on
Employee Engagement Survey, and the results
global economic conditions. Our supply chains,
were pleasing with a 10% increase from the 2019
customer and supplier base could be affected by
survey (2021: 74% vs 2019: 67%). I recommend you
business closures, labour shortage, raw material
have a look at our People dashboards for more
supply and cost inflation.
information.
Climate change is no longer an emerging risk. Looking forward – what’s next for CIEL?
It is clearly becoming a principal risk as adverse
weather events or natural disasters could negatively Over the next few years, we will further refine
affect economies and disrupt businesses. our strategy and continue to identify growth
Our commitment to improving energy performance prospects for the Group that meet our strategic,
and reducing carbon emissions is intended to risk and return criteria. Many areas of CIEL are
reduce our impact on the environment and should poised to do well and with the continued focus
also deliver significant long-term cost savings. on digitalisation, sustainability, and our people,
we will have the tools and capacity to optimise our
Tell us more about your approach to strong asset base whilst being in a good position
to capture new opportunities.
being a diversified investment group.
We are diversified in terms of the varied markets We see solid growth in the Healthcare and
we serve but our strength also comes through Finance sectors notably in Africa. In addition, our
our solid positions in the African and Asian manufacturing know-how, specifically in India
markets. We have demonstrated excellence in where the market is huge and growing fast, is a
the exports of products and services, and we can strong differentiator we are planning to further
use these skills to tap into innovative markets capitalise on. We will further develop our property
such as Financial Services and Healthcare which portfolio to unlock value. The recent doldrums
have different cycles and capital intensity. We are of the Hotels & Resorts cluster calls for caution,
gathering momentum not only as an international but we are more than encouraged by the current
supplier but importantly as a proximity supplier to booking momentum.
fast-growing sectors and regions.
Click on image to access video
The consequences of the pandemic have been
What are CIEL’s primary focus very tough, we are not completely out of it yet,
areas/initiatives? but the CIEL Group as a whole has emerged
A strong sustainability focus and ethos is at the stronger, and we are excited about the future.
core of all our decision-making. We launched
our 2030 strategy last year and have spent this
year setting out a strategic roadmap with tangible
deliverables and timelines. We aim to design
responsible products and services across our
clusters and encourage our stakeholders, clients,
JEAN-PIERRE DALAIS
and suppliers alike, to make the right choices in
this regard. I recommend you have a look at our GROUP CHIEF EXECUTIVE
sustainability dashboards for more on our initiatives.
Next, our focus is on the digitalisation journey

which is vital to the long-term sustainability of
the Group, and we have a dedicated data team
that extensively collaborates across the Group.
For example, within our banking operations and
in the Healthcare cluster, projects range from
automating reporting (functional, compliance,
audit, operational) through to strategic insight and
analysis via machine learning, which assists the
teams with their decision-making and planning.
28 29
OUR
VALUE
CREATION
STORY
“
Over the next few years, we will continue to refine
our strategy and continue to identify growth
prospects for the Group.
- Jean-Pierre Dalais
OUR VALUE CREATION STORY
CIEL Strategy
Associated KPI Associated Risks
1
Optimise assets and 1 2 3 4
EBITDA Growth and Return
performance with focus on on Capital Employed 5 6 7
EBITDA generation and return
on capital employed
2
Drive Operational Excellence OPEX Dashboard 6 7
(OPEX) across the Group
3
Share of Revenue & Profits 2 6 7
Consolidate our presence in from International Markets
selective regional markets
4
1 2 3 4
Increase focus on services- Customer Satisfaction Scores
oriented businesses - B2B2C – 5 6 7
and customer satisfaction
5 Enhance HR capabilities
across the Group through 6
Guided by our purpose Nurture talent development accelerated exchange of
best practices
“For A World We Can All Feel
Proud Of”, CIEL continues to
implement its strategy to be the
#1 in each of our sectors. 6
Embrace sustainability for Sustainability Dashboard 1 6 7
competitive edge
32 33
CIEL Strategy
Key Capitals Impacted
Manufactured Social & Relationship

Financial Capital Intellectual Capital Human Capital Natural Capital
Capital Capital
Key Capitals
Strategic Pillars Progress this Year Next Steps SDGs Tackled
Impacted
Optimise assets and ong term financing secured for CIEL

L ontinued focus on optimising operations
C
performance with Delivered improved margins in all investment clusters, except for Increase focus on improving cash flow and
focus on EBITDA Hotels & Resorts EBITDA generation
generation and return Reduced fixed cost base across clusters Focus on foreign currency positioning
EBITDA margin increased year-on-year
on capital employed
Increased value of portfolio by 42%
Decreased indebtedness through MIC loan for SUN Resorts
Drive operational PEX KPIs implemented within all clusters

O est practice forums to resume online
B
excellence across In second year of Group Innovation Awards and roll out across the group Continued focus on digitalisation and
the Group with Finance and Healthcare holding their own innovation awards innovation
Textile held the Chairman’s Excellence Awards
HR Forum held this year
Consolidate our obust momentum in CIEL Textile’s international operations in

R apture new opportunities in growth
C
presence in selective Madagascar, India and Bangladesh with new Indian operations posting sectors
regional markets profits for first time Focus on new Properties cluster to unlock
Signed strategic partnership with SOCOTA to develop the largest woven value
fabric mill in the Indian ocean Continue to consolidate our presence in
BNI Madagascar #1 position maintained for the corporate segment, whilst regional markets by increasing efficiency
the bank has gained market share on the retail front and profitability of existing assets
Exit from health membership organisation (HMO) business in International
Medical Group (IMG) in Uganda to focus on core business
Sale of Kanuhura Resort (Maldives) operations in May 2021
Remarkable turnaround in Alteo’s financial results due to better sugar
prices in our markets and an improved sugar production in Kenya
Increase focus on IEL Textile positioned as one stop shop for retailers and digital sampling
C I ncrease digitalisation transformation in
services-oriented and virtual factory tours implemented growth sectors (Finance & Healthcare)
businesses – B2B2C – CIEL Healthcare increased bed capacity and invested in new technologies Leverage on new concepts and new
and customer and departments (eg. oncology ward) consumer behaviours to generate revenues
CIEL Finance through banking joint venture (BankOne) implementation of (Hotels & Resorts)
satisfaction
new IT platform progressing well and launch of new digital platform - POP Sustainable transformation of traditional
CIEL Hotels & Resorts - SUN rebranding and focus on B to C in progress industries (Agro, Hotels & Resorts and
with an international consultancy firm along with ‘work, live and play’ Textile)
programme implemented
34 35
CIEL Strategy
Key Capitals
Strategic Pillars Progress this Year Next Steps SDGs Tackled
Impacted
Nurture talent Employee engagement survey undertaken ontinuously explore and identify
C
development he drive for enhancing employee experience continues to progress
T opportunities to digitalise key HR processes
through the digitalisation strategy with the implementation of Human Continue to give employees opportunities
Capital System (HCM) modules to transfer across business units or clusters
A Gender Balance Program established at Group level to gain experience
Pursue journey for “Top Employer Brand”
Embrace sustainability I mplementing roadmap in alignment with the Group Sustainability aunch Ferney sustainable development
L
for competitive edge Strategy 2030 project
Held Sustainability Forum with 200+ executives of the Group Continue engagement around sustainability
CIEL Textile invited to COP26 UN Climate Change Conference issues within and outside the Group
Deployed digital tool to collect and analyse sustainability data in the All clusters to implement supplier
Textile cluster assessments on sustainability / ESG
The Textile cluster also introduced the Eco Index to decrease our client’s Flagship conservation project in the Ferney
impact on the environment and gained LEED certification for factory Valley moving to next phase of populating
in Samudra the new conservation zone on the coastline
Creating innovative initiatives for Environmental & Social impact across near Falaise Rouge
clusters (Ferney Agri-Hub, Waste to Wealth program, among others)
CIEL COVID Fund continues to support those in need
36 37
CIEL Business Model

Key Group Inputs in the Year Business Model Key Outputs and the Value Created in the Year
Human Capital Human Capital

Our Ambition
We nurture a winning culture with talented individuals, an intrapreneurial approach, 295,000 training hours invested to grow our people:
and unique technical expertise.
Be the #1 in each of our sectors • 220,000 hours on technical training
• 75,000 hours on leadership training
pproximately 31,000 employees in the Group across six clusters
A A Gender Balance Program established at Group and cluster level
A truly international workforce with 70% based outside Mauritius The Group Employee Engagement Survey conducted showed a 10% increase from
A young and dynamic team with an average employee age of 37 years the 2019 survey (2021: 74% vs 2019: 67%)
Sustaining an innovative culture through the CIEL Innovation Awards where our
colleagues can submit ideas and projects
Our Activities
Financial Capital
We draw our financial capital from our equity and debt holders as well as cash flow
earned from our operations. Financial Capital
42% increase in the value of the investment portfolio
Additional investment in the Healthcare cluster of MUR 54M Properties Textile Increased activities at C-Care owing to the addition of more beds, and lab operations
Optimised portfolio for leaner and more efficient operations We own We design and led to higher revenues
Revaluation of land at Ferney high-value land manufacture Decreased fixed cost base leading to EBITDA margin increase to 15.1% (2020: 14.6%)
bank and develop innovative garments Moved from a loss-making position to a positive Profit After Tax this year
sustainable for global retailers
property projects through our
vertically integrated
operations
Manufactured Capital
We use our fixed assets such as: land, buildings, hotels, factories, logistics and technology Manufactured Capital
assets to create value.
onsolidation of non-core industrial properties of the Group into a stand-alone
C
reation of CIEL Properties
C Hotels & Resorts Agro new property vehicle
Strategic partnerships at heart of CIEL strategy Worked on strategic partnership with the SOCOTA Group (COTONA) in Madagascar
We own and We bring value to for the creation of the largest woven fabric mill in the Indian Ocean region.
manage luxury our land bank by Transaction closed in August 2021
hotels and resorts growing and
strategically transforming
located on prime sugar cane
Intellectual Capital beaches
We foster innovation which is rooted in our culture and the intellectual property Intellectual Capital
created from that includes our solid brands & reputation, new systems and processes,
new products, solutions, and offerings. Healthcare Finance utomation projects, strategic insight analysis and artificial intelligence projects
A
across clusters
Investment in digital technologies We operate a We offer a unique Launch of digital payment platform in BankOne - POP
diversified brand portfolio and partner network
A network of leading complete range of Intensifying efforts to increase brand awareness across clusters
private healthcare financial services
facilities (banking, fiduciary,
portfolio and asset
management)
Social & Relationship Capital Social & Relationship Capital
We earn and maintain our reputation through trusted relationships with our

Engage with stakeholders through quarterly financial reporting, annual reporting,
key stakeholders, largely thanks to our 109-year track record and choice of
and AGM
strategic partners, all of which are essential to our growth.
Contribution of MUR 10.7M to corporate social responsibility
Successful 14th semi-virtual CIEL Ferney Trail
Consistent stakeholder engagement
Continued support for employees affected by COVID-19
rusted relationships with NGOs, trade organisations and public authorities
T Our Investment Approach
A hands-on approach staying close to operations
Long-term strategic partnerships bringing capital and expertise

Natural Capital to our operations and expansion
Natural Capital
We source our raw materials using sustainable practices and commit ourselves to use ur Textile cluster has introduced the Eco Index to decrease our client’s impact on
O
them and the associated natural capital efficiently. An entrepreneurial attitude with 109 years track record the environment
Six 0 waste factories as part of Asia “Waste to Wealth” programme
esigning responsible products and encouraging clients to make the right choice
D Predominantly controlling stakes in our companies 1,142 trees planted in the year (33,800 since 2008)
Received letter of intent from the Economic Development Board of Mauritius for 13 Ha restored as at 30 June 2021
development of land in Ferney Focus on customer experience 18 critically endangered species present in our forests
Ongoing endemic fauna and flora conservation programme at Ferney La Vallée in 43 endangered species present in our forests
partnership with the Mauritian Wildlife Foundation
38 39
People Dashboard
Foster a Vibrant Workforce
Under this pillar, we consider employees across the Group’s operations, including Alteo. Total Employees:
31,308 -1.5%
Work Environment
CIEL remains a truly international organisation with nearly 70% of its workforce on the African and
Asian continent. Despite the constraints imposed by the COVID-19 pandemic on operational sites
and the workplaces of our collaborators, we have shown resilience and are proud to provide over vs 2020
31,000 careers.
Employees by Country (Main Operations) 2021:
37 7 38%
Years Years Employees
average average years of live less than 15km
employee age service from work
960
6,210 Bangladesh Percentage of Employees per Cluster*
India
Agro
2021: 19%
2020: 18%
2019: 20%
620
Uganda
Inner circle: 2019
4,330 Healthcare Middle: 2020
Tanzania & Kenya
2021: 7% Outer: 2021
2020: 7% Textile
2019: 6% 2021: 63%
2020: 58%
9,620 2019: 56%
Madagascar 9,530 Finance
Mauritius
2021: 5%
2020: 5%
2019: 5% Hotel & Resorts
2021: 6%
2020: 12%
2019: 13%
The newly created CIEL Properties accounts for 0.2% of employees in 2021
*
40 41
People Dashboard
Engagement Score Gender Balance
A new engagement survey was carried out in 2021, showing high spirits across the Group overall, This financial year sees an increase of 2% in women at management level, and 0.6% at directorship level*.
despite a slight drop at the Hotels & Resorts and the Properties clusters. CIEL Healthcare saw a notable The CIEL Women Network has been active to further facilitate the professional journey of women
increase since 2019, and CIEL Finance is showing steady progress. CIEL Textile has deferred its survey across the Group.
to 2022 due to operational priorities linked to the pandemic.
Women at Management Level
2020 2021 Variance

Goal: Textile 20.5% 24.0% +3.5%
Achieve “Top Employer Brand”
Finance 29.4% 29.4% +0.0%
or equivalent status by 2025
Healthcare 34.7% 39.0% +4.3%
Properties - 37.5% -
Hotels & Resorts 28.8% 26.7% -2.1%

Engagement Score per Cluster
Agro 11.1% 23.8% +12.7%
100
91
90 85 83 18.9% 27.3%
82 Women Women
80
80 75 76
74 73
67 69
70 67
63 61
60 58
FY 2021 FY 2021
50
40
30 81.1% 72.7%
Men Men
20
10 Directors Management
2020: 18.3% 2020: 25.3%
0 2030 goal: 30% 2025 goal: 35%
Group Textile Finance Healthcare Properties Hotels &
Resorts
Management level refers to company CEOs and their direct reports, while directorship
*
refers to members of boards of directors, including independent directors.

2021 2019 2018
42 43
People Dashboard
Gender Balance (Con’d)

252 423
Transfers Internal Promotions
Colleagues seizing opportunities Recognising talent within
46% 57%
Women Women across BUs or clusters the Group
% of Workforce Trained
FY 2021 FY 2021 Properties
Agro
Healthcare
54% 43%
Men Men Finance
Staff Workers/Operatives
Hotels &
Resorts
This financial year, we have a breakdown of the workforce at Staff and Workers/Operatives
level. With 46% and 57% respectively being women, it demonstrates the potential for more
Textile
women to grow to management level in the future.
0% 20% 40% 60% 80% 100% 120%
Learning & Development

Total training hours dropped in FY2021 due to the pandemic and focus was on immediate and Training Hours per Employee
strategic needs. Whilst most clusters continued to invest more in the workforce, Healthcare remained
an exception with a sharp drop of 31% of the workforce trained, on account of increased focus on
operational requirements in response to the pandemic. Hotels & Resorts trained more of its workforce,
essentially preparing for new sanitary protocols in force. AVERAGE
Properties
Agro
220,000
Technical training
Hrs
15%
since 2020
Healthcare
Finance
Hotels &
Resorts
75,000 23%
Textile
Hrs since 2020 5.00 15.00 25.00 35.00 45.00 55.00 65.00
Leadership training
2021 2020 2019
44 45
PERFORMANCE
“
The Group posted encouraging results
for the 2021 financial year on the back of
the ongoing turnaround from almost all
our clusters.
- L. J. Jérôme De Chasteauneuf
PERFORMANCE
CIEL Financial Overview

Financial Overview
“
Revenue totalled MUR 17.9 bn: a significant rebound in year-on-year Q4 results (2021: MUR 4,383M
and 2020: MUR 2,477M) helped alleviate the year-on-year decline of 15%. Growth in the Healthcare
(+26%) and Finance (+9%) clusters further assisted in mitigating the impact of the pandemic from the
Hotels & Resorts business (-89%).
The Group posted encouraging results for the 2021
financial year on the back of the ongoing turnaround Revenue
from almost all our clusters.
20,956
In view of the marked improvement and
17,869
strong capital base, the Board has declared a
dividend of 5 cents per ordinary share which
will be paid at the end of October 2021.
10,390 10,444
4,635
3,462 3,782
2,377 2,995
MUR ‘M
113 103 528
Group Textile Finance Healthcare Properties Hotels &

Resorts
2020 2021
Where We Generate Our Revenue

Increased exposure to growth regions
35%
44%
36%
(15%)
30 June 2020 30 June 2021
48%
20%
17%
Mauritius Asia Africa
48 49
PERFORMANCE

FINANCIAL OVERVIEW Earnings before Interests, Taxation, Depreciation, Amortisation, Impairment, Reorganisation costs
and Fair Value gain on investment property (EBITDA) stood at MUR 2,697M, down by 12%. The EBITDA
MUR ‘M 2021 2020 % Change margin increased slightly to 15.1% compared to the prior year’s 14.6%, with a much improved fourth
quarter compared with the low base of comparison for the fourth quarter in 2020. This demonstrates
Revenue 17,869 20,956 (15%)
the effectiveness of the numerous cost-saving initiatives deployed throughout the Group.
EBITDA1 2,697 3,053 (12%)
Depreciation and amortisation (1,301) (1,341) (3%) Depreciation and amortisation charges decreased on account of the reclassification of assets:
the transfer of MUR 54M depreciation pertaining to Kanuhura (Hotels & Resorts) and MUR 42M for
Earnings Before Interests and Taxation (EBIT) 1,396 1,711 (18%) the transfer of Consolidated Fabrics Limited (Textile) to discontinued activities.
Impairment (576) (1,378) (58%)
Impairment charges and restructuring costs of MUR 576M is a 58% reduction from 2020’s MUR 1,378M.
Fair value gain of investment properties 960 160 500%
It includes impairments of financial assets, the largest coming from the Finance cluster with IFRS9
Net finance costs (1,274) (1,439) (11%) provisions of MUR 317M, and from non-financial assets, reorganisation costs of MUR 154M at cluster
Impairment of associates - (109)
level in response to COVID-19, and the balance which included provisions for obsolete stock and
write-off of property, plant and equipment.
Share of results of associates & joint ventures net of tax 267 (51) (119%)
Before tax 773 (1,106) 170% The decrease in net finance costs from MUR 1,439M in 2020 to MUR 1,275M in 2021 was mainly due to
the restructuring of the debt, the divestment of Kanuhura and financial support from MIC at competitive
Taxation (80) (189) (58%)
rates for SUN Limited. CTL indebtedness was also reduced during the financial year.
Profit/(Loss) from continued operation 693 (1,295) 154%
The share of results of associates and joint ventures substantially increased from a negative
Loss from discontinued operation (247) (883) (72%)
contribution of MUR 52M to a profit of MUR 267M, largely attributable to our interest in Alteo,
After tax 446 (2,178) 120% who had a remarkable performance in the current financial year. On the joint venture side, increased
Attributable to: profits from Bank One from a loss of MUR 37M to a profit of MUR 67M though mitigated by the loss
from our joint venture at Anahita Residences & Villas Limited of MUR 68M (2020: loss of MUR 30M).
Owners of the Parent 617 (1,680) 137%
Non controlling interests (171) (498) 66% Income tax charge decreased by MUR 109M owing to tax assets of MUR 225M recognised on losses
from the hotel sector.
Basic and diluted (loss)/earnings per share (MUR) 0.37 (1.00) (137%) Loss from discontinued operations of MUR 247M resulted mainly from the reclassification of operational
EBITDA Margin 15.1% 14.6%
losses of MUR 245M following the sale of Kanuhura (Hotels & Resorts) together with reclassification
of operational losses of MUR 27M from the Consolidated Fabrics operation (Textile) and operational
profit of MUR 25M from our Healthcare cluster.
Equity 22,185 18,614 19%
ROE 2% 0%
EBITDA
Net Asset Value per Share (Group) 8.85 6.69 32%
Net Asset Value per Share (Company) 9.28 6.00 55%

246
773 60
Net Interest Bearing Debt2 14,157 17,078 (17%)
(28)
Gearing = Debt/(Debt+Equity) 39.0% 47.8%
3,053 69 2,697
DEBT to EBITDA1 5.2 5.6
(1,477)
Capital Employed 36,342 35,692 2%
ROCE 4% 5%
MUR ‘M
Dividend per share (MUR) 0.05 0.08 (38%)
Market Capitalisation (MUR 'bn) 8,738 5,869 49%
Earnings before Interest, Tax, Depreciation, Amortisation, Impairment charges, reorganisation costs and fair value gain
1 June-20 Textile Finance Healthcare Properties Hotels & CIEL June-21
on investment property Resorts Limited*
2
Excludes right of use liabilities under IFRS 16 and Banking liabilities
*
Net of Group eliminations
50 51
PERFORMANCE

Profit after taxation of MUR 446M was a marked improvement on the loss of MUR 2,178M in 2020. Financial Structure
Free cash flow reduced by 26% to MUR 986M from MUR 1,325M on the prior period, due mainly to
Profit attributable to owners increased and stood at MUR 617M (2020: Loss attributable to owners the continued absence of cash generation in the Hotels & Resorts cluster, and the increased working
of MUR 1,680M). capital needs in the Textile cluster following its rebound. However, free cash flow improved in the
Finance cluster and posted a significant increase in the Healthcare cluster.
Profit After Tax Free Cash Flow
MUR ‘M
1,325
(2,178)
Group
446 1,047
986
891
(656) 825
Textile
729
627 660
501
Finance 388
608 321
(96)
MUR ‘M
Healthcare 42
296
(25) (33)
154 (150)
Properties
913
(1,849)
Hotels &
Resorts
(2,145)
(828)
(23)
Agro
244 Group Textile Finance Healthcare Properties Hotels & CIEL
Resorts Limited
2020 2021 2020 2021
52 53
PERFORMANCE

Group Leverage Investment Portfolio
Net interest-bearing debt, half of which comes from the Hotels & Resorts cluster and is not guaranteed
by the Group, was reduced to MUR 14.2 bn from MUR 17.1 bn in 2020 with a gearing ratio standing
at 39% (June 2020: 48%). Funding from the Mauritius Investment Corporation (MIC) at SUN Limited
9% Agro
level in the form of a quasi-equity instrument largely accounted for this reduction in the Group’s
indebtedness. As at 30 June 2021, a disbursement of MUR 2.3bn from the MIC from a total approved
12% Healthcare
funding line of MUR 3.1bn has been received.
33% Textile 16% Properties 29% Textile
11% Hotels
Net interest-bearing debt & Resorts
30 June 2020 30 June 2021

47.8% MUR 13,068M MUR 18,586M
39.4% 41.2% 39.0%

38.5%
36.0% 19% Finance
16% Finance
20% Healthcare
25% Agro &
Property 10% Hotels
& Resorts
MUR ‘M
13,242 15,229 15,498 15,522 17,078 14,157
Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 At Company level, the total portfolio value has increased by 42% due to an increase in valuation
of all the underlying assets
The Company Net Asset Value (‘NAV’) per share increased by 55% and stood at MUR 9.28 as at
Net Debt Gearing (%)
30 June 2021 (30 June 2020: MUR 6.00)
Textile’s valuation increased by 28% from a NAV per share of MUR 41.89 to MUR 53.50, based
Shareholder Value on the discounted cash flow model valuation methodology and the improved projections led
CIEL shares outperformed the SEMDEX from the second half of the financial year. CIEL ended by better visibility of the market, a stronger order book, and supported by the depreciation
June 2021 at MUR 5.18, a 49% increase on the prior period (30 June 2020: MUR 3.48). of the rupee
An increase of 12% for the Finance cluster was mainly due to an increase in the valuation of our
160 fiduciary services company MITCO from MUR 169M to MUR 296M, considering their improved
150 profitability, and from our share in Procontact (47.67%), the multi-service contact centre,
located in Mauritius, Madagascar and Rodrigues, who had an increase in valuation from MUR 75M
140
49% Increase to MUR 210M
130 The Healthcare cluster: C-Care (reflecting our cumulative stake of 55.8%) is listed on the stock
120 exchange of Mauritius (DEM). The share price of C-Care increased significantly over the financial
year ended 30 June 2021, however, with low trading volumes. The investment in C-Care has
110
been valued using the Volume Weighted Average Price (“VWAP”) for the financial year ended
100 30 June 2021 as management considers it is a more appropriate valuation of the Company.
90 The share price as at 30 June 2021 was MUR 19.70 and the VWAP used for valuing the investment
was MUR 10.35
80
The Property cluster increased its value from MUR 2,200M to MUR 2,968M following a
70 revaluation of the earmarked land for the Ferney Sustainable Development Project, following
60 the receipt of a letter of intent from the Economic Development Board of Mauritius
The value of the Hotels & Resorts cluster increased on the back of a 25% increase in the share
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun price for SUN Limited from MUR 14.80 at 30 June 2020 to MUR 18.50 at 30 June 2021. SUN is
2020 2021 valued at market price plus a 10% premium
Alteo’s market price increased by 70% from MUR 15.20 at 30 June 2020 to MUR 25.80 at
30 June 2021
CIEL Limited SEMDEX
54 55
PERFORMANCE
CIEL Textile
MUR 10,444 M MUR 1,321 M MUR 627 M

Cluster Revenue EBITDA Profit after Tax
2020: MUR 10,390M 2020: MUR 548M 2020: (MUR 656M)
Operating Context
COVID-19 Impact
emarkable rebound of activities since July 2020, mainly in Madagascar & India
R
Higher demand for casualwear led by online retail clients
Good order book at good margins in Knits & Knitwear segments
Lower demand for formal shirts in Woven segment during lockdown but regaining momentum
Depreciation of Mauritian rupee has had a positive impact on gross margin
Margin pressure due to high inflation, increase in prices of raw materials, and logistics costs
Market Dynamics
ising demand for sustainable products and multi-product manufacturers (one stop shop)
R
which is favourable to CIEL Textile
UK opened free trade agreement negotiations with India: positive outlook for Indian operations
Low vaccination rate in India, Madagascar and Bangladesh posing risk of new lockdowns
High currency volatility
4 31
Key Risks
M
Countries Garments Exported
Operational Market Compliance
usiness continuity and
B I nability to adapt to major Sustainability compliance
cybercrime market change
3
Outsourcing risk
Clusters
18,000
Employees
Succession planning
Rising labour costs

Interest rate hikes
(Knits, Knitwear, Woven)
19
Financial
ack of long-term
L
perspective and cash
Production Units management risks
56 57
PERFORMANCE
CIEL Textile
Performance & Strategy How we #GoBeyond to Explore. Adapt. Innovate.
Progress Report for FY21 Priorities for FY22 CIEL Textile - Transforming fabric scrap into rug mats
radual opening of UK and USA markets

G Pursue strategic vision around:
leading to strong demand • Sustainability
• Digitalisation
emand for shirts heading back
D • Talent Development
to pre-Covid levels from main USA
customers for Aquarelle and Laguna Attract new business thanks to one stop
Mauritius shop solution
uccessful rebranding and leveraging

S Capitalise on geographic positioning
on Group’s new brand identity, vision, in India, and develop Madagascar and
and mission to scale up multi-product Mauritius as a textile hub working in
offering closer alignment for retailers looking to
source products beyond China
uccessful restructuring and cost saving
S
measures to adapt to temporary drop Manage transition toward the strategic
in demand partnership with SOCOTA to develop the
largest woven fabric mill in the Indian
reat resilience and innovative
G ocean region, opening up significant
adaptations from the team by leveraging growth opportunities
on 3D sampling capabilities which has
experienced exponential growth since Capitalise on new brand identity
the beginning of the crisis
oster better integration of MOE 361o
F
irst sustainability report launched
F Leadership Academy within HR processes
and developed in accordance with
GRI standards providing a transparent Launch CIEL Textile Graduate Program in
overview of the state of the Group’s Madagascar
sustainability achievements and progress,
while engaging with partners and ontinue the consolidation of operations
C
customers around ESG and teams to become leaner and fitter
ppointment of key leaders to drive

A Implement a solid succession plan
digital transformation, sustainability process across the group
journey, HR agenda and operational
excellence
onsolidated operations and leadership

C
teams to become leaner and fitter
Ongoing journey towards operational

excellence
58 59
PERFORMANCE
CIEL Finance
MUR 3,782 M MUR 1,349 M MUR 608 M

2020: MUR 3,462M 2020: MUR 1,289M 2020: MUR 501M
Operating Context
COVID-19 Impact
esilient performance although results were impacted by a slowdown in economic activities and
R
lower deployment opportunities in banking operations
Strength of the banking operations evident despite difficult economic climate
Increased adoption rate of digital solutions
Vulnerability of the Mauritian market owing to uncertainty around domestic borders reopening
Market Dynamics
Opportunities in the market for data analytics & Fintech
Major global banks have de-risked the African markets
Stock market volatility impacting wealth management activities
Uncertainty around timing of the removal from the FATF grey list and EU & UK blacklists
5 Key Risks
Countries
1 Strategic Operational Cyber
2
Private Equity Firm
The inability to attract Loss from fraud and criminal Breach of IT security
new clients or substantial activity or caused by human resulting in adverse effect
reduction in activity levels due error and inadequate internal on confidentiality, availability
Banks to unforeseen circumstances processes and systems. of services, or integrity
1 1
Stockbroking Company
in the environment (e.g. global
health crisis, EU blacklisting).
of information.
Portfolio Management &

Mutual Funds Company
Credit Investment
1,600
Financial loss resulting Loss from adverse changes
1
Fiduciary & Corporate
Employees
from borrowers failing
to fulfil their financial or
contractual obligations.
in fair value of an investment
in a company, fund, or any
financial instrument.
Services Company
60 61
PERFORMANCE
CIEL Finance
Performance & Strategy Performance & Strategy
Progress Report for FY21 Priorities for FY22 Progress Report for FY21 Priorities for FY22
CIEL Finance CIEL Finance MITCO MITCO

esilient performance although results
R Launch new strategy and business plan Onboarded a new CEO in December 2020 Grow in new markets: Dubai and China
are impacted by slowdown in economic for CIEL Finance iversification of service offering to
D arget for excellence in customer
T
activities
ccelerate digital journey and data
A counteract the consequences of Mauritius experience
Onboarded a new CEO in March 2021, exploitation by: being on the FATF grey list and EU & UK evelop new products and services as
D
working on CIEL Finance strategy and blacklists with launch of MitConsult
• Leveraging on CIEL Data Services per clients’ needs
business plan which focuses on offering tailor-made
• Achieving operational excellence in compliance and regulatory services
aunch of the CIEL Finance Innovation
L critical processes
Awards to instill an innovative culture • Enhancing the customer experience eveloped innovative marketing and sales
D
within the cluster to ensure the strategies to overcome the challenge of
deployment of innovative products border closures
and solutions
IPRO IPRO
Bank One Bank One
evised strategy implemented but effects
R everage on client synergies with BNI
L
nboarded a new COO in September
O ead the e-commerce disruption on
L of the pandemic have impacted the and Bank One
2020 as well as key members of the the domestic market by deploying growth of the portfolios, including the size
executive team alternative payment solutions such as of IPRO Growth Fund
the newly launched ‘POP’ application
reation of new positions to accelerate
C ubstantial progress in digitising several
S
progress on the digital roadmap xecute a double leap on the digital
E critical processes
e-engineered the retail division into
R journey: aunch of a new global equity fund, geared
L
three sub-segments: Elite, Mass Retail • Bridge the gap on basic internet and towards IPRO’s private and pension fund
and SME Banking mobile services client base
eveloped innovative, value-adding
D • Build a competitive edge in certain
solutions such as cashback on credit segments Kibo Capital Partners / Kibo Funds Kibo Capital Partners / Kibo Funds
cards, contactless feature on all payment • Adopt more agile methodologies
Sale of one of the last investments of Kibo I Launch Kibo Fund III
cards and a ‘digital desk’ in each branch
Consolidate sub-Saharan corporate
to foster the use of electronic channels
strategy
by clients
How we #GoBeyond to Explore. Adapt. Innovate.
aunch of the new ONE Alliance club,
L
where cardholders can receive exclusive
discounts on entertainment-related BNI Madagascar – Pioneering mobile microfinance in Madagascar
activities
BNI MADAGASCAR BNI MADAGASCAR

Healthy loan book growth Launch “Grow Better” strategy
Strong progress on digital banking front Consolidate leadership position while
umber 1 position maintained for the
N increasing focus on retail banking and
corporate segment, whilst the bank has digitalisation of services
gained significant market share on the Grow SME markets
retail front
ompletion of the “CAP Leader 2020”
C
strategy – with the bank now the leader
in terms of branch network, largest
market share in loans and advances,
largest number of clients and number Click on image
two in terms of profitability and deposits to access video
62 63
PERFORMANCE
CIEL Healthcare
MUR 2,995 M MUR 584 M MUR 296 M

2020: MUR 2,376M 2020: MUR 338M 2020: (MUR 96M)
Operating Context
COVID-19 Impact
I ncreased activities at clinics and laboratories due to PCR testing and closure of borders
in Mauritius
Market Dynamics
C-Care benefitted from patients unable to travel for treatment overseas
Currency devaluation leading to higher cost of drugs and consumables
Lack of qualified nurses worldwide
Increased competition in Mauritian market
Key Risks
2
Countries
2
Main Laboratories
Strategic
atients’ ability to pay for
P
quality private healthcare
in the countries where
Financial
I mpact of COVID-19 on
Ugandan operations
Reputational
atient complaints and
P
legal action
we operate Credit default risk
New market entrants ack of qualified clinical

L
staff in Mauritius
26
COVID-19 risk management
3
Hospitals
Lab Collection Points
(8 in Mauritius and 18 in Uganda)
Cyber Operational
lectronic health records
E ack of training and talent
L
increasingly exposed to development
20 2,000
cyber risks
Clinics Employees
64 65
PERFORMANCE
CIEL Healthcare
Progress Report for FY21 Priorities for FY22 C-Care – Supporting nurses through a holistic strategy
CIEL Healthcare CIEL Healthcare

ignificant growth trajectory with profits
S Maintain profitability levels
driven mostly by C-Care’s operations
C-Care C-Care
xceptional performance of C-Care –
E Consolidate C-Care brand equity
increased bed capacity and lab activity
Clinique Darné extension and oncology
articipated in national vaccination
P unit project
program
Pursue C-Care Clinic project at
aunch of C-Care Clinic in the west of the
L Mont Choisy
island in August 2020
Accelerate digital journey and leverage
I mproved performance mainly due business intelligence tools to drive
to significantly lower impact of the efficiencies
FY 2021 lockdown compared to
FY 2020 lockdown Continue to focus on patient care and
quality across operations
ngoing extension of Clinique Darné and
O
investment in new MRI equipment Continue to improve clinical and
non-clinical procedures in view of
mbarked on projects for new oncology
E Comprehensive Health Knowledge
ward, isolation ward and room layout at System (CHKS) certification for C-Care
Wellkin Hospital
Launch nursing school in partnership
with Charles Telfair Institute
IMG (Uganda) IMG

xited from health membership
E Drive occupancy and asset utilisation
organisation (HMO) business
In-house laboratory operations
Hygeia (Nigeria) Hygeia (Nigeria)

Exit from hospital and insurance business Complete exit from hospital and
insurance business
66 67
PERFORMANCE
CIEL Properties
MUR 103 M MUR 2 M MUR 913 M

2020: MUR 113M 2020: MUR 30M 2020: MUR 154M
Operating Context
COVID-19 Impact
losing of all hospitality activities at Ferney due to sanitary restrictions and closed borders
C
Limited impact on property development – project development stage
Market Dynamics
rowing demand for sustainable agriculture in Mauritius
G
Growing market for eco-tourism and sustainable offering
Demand for high-end property market in Mauritius
New government incentives to attract foreign investment through property acquisition
Market visibility on post covid trends remains a challenge
Key Risks
3,200
Hectares of Land in Ferney
6
Level Building In Ebène
Property Development
riority projects deferred
P
due to unfavourable market
conditions and availability
Property Management
enants’ defaulting
T
on obligations due to
bankruptcies
Ferney Ltd
eduction in revenues due
R
to a drop in tourist arrivals
of project finance
oss of revenue from falling
L
rental rates or reduced
leased areas
100
Hectares of Nature Reserve
70
Employees
oss of customers from
L
international tourism
MUR 4.2 BN
Assets under Management
68 69
PERFORMANCE
CIEL Properties
Progress Report for FY21 Priorities for FY22 Ferney Agri-Hub - Fostering agri-entrepreneurship and food security in Mauritius
erney restaurant and lodge impacted

F Finalise Ferney sustainable development
by sanitary restrictions and closure project master plan and accelerate
of borders the development of phase 1 subject to
receiving Ferney Smart City Certificate
eceived letter of intent for Ferney
R
sustainable development project under Launch of phase 2 of Ferney Agri-Hub
smart city scheme with the hosting of international
accelerator for agri-tech developments
ppointment of international team
A
of consultants for master planning, Continue developing hospitality offering
renewable energy and sustainability in Ferney with new products and
strategy and brand positioning for Ferney experiences
aunch of Phase 1 of Ferney Agri-Hub

L Consolidate non-core industrial
successful with 100% of plots rented properties of the Group into a stand-alone
new property vehicle
ale of non-strategic land on the east
S
coast of the island Support CIEL clusters in creating value
around non-yielding property assets
70 71
PERFORMANCE
CIEL Hotels & Resorts
MUR 528 M (MUR 554 M) (MUR 2,145 M)

Cluster Revenue EBITDA (Loss) after Tax
2020: MUR 4,635M 2020: MUR 923M 2020: (MUR 1,849M)
Operating Context
COVID-19 Impact
ost severe crisis in history with unprecedented impact on the hospitality, travel and
M
tourism sectors
All resorts and related business units’ operations suspended or maintained limited operations
with marginal revenue generation (quarantine and local market only) due to border closure
Government provided financing facilities through the Wage Assistance Scheme and Mauritius
Investment Corporation
Market Dynamics
rowing confidence in travelling due to vaccination progress and continued sanitary protocols as
G
countries open borders with less restrictions
New business models and opportunities due to the evolution in travellers’ expectations: looking
for more eco-tourism and wellness experiences
Acceleration of digitalisation to enforce sanitary protocol
Uncertainty around air access to and from source markets
Uncertainty around customer behaviour and demand post-crisis
7 2
Key Risks
Owned & Managed Properties Tour Operators

in the Indian Ocean
Strategic Financial Compliance/Reputation
lobal economic
G ong-term air access
L ailure to ensure guest or
F
uncertainties in the wake closure resulting in associates’ health, safety
of the COVID-19 pandemic short-term cash flow and security
crisis and financial loss
ower demand for long
L
+1,450 2,800
haul destinations arising onstraints related to
C
from the post effect of possible new lockdowns
COVID-19 and border closures
Rooms Employees (Approx.) ajor disease outbreaks
M ajor credit risk resulting
M
in tourism destinations in from the bankruptcy of
which SUN operates major tour operators
inancial collapse of major

F
trade partners
72 73
PERFORMANCE
CIEL Hotels & Resorts

Progress Report for FY21 Priorities for FY22 Sun Marine Conservation Center - Regenerating marine biodiversity
through coral farming
-year plan established to restore
3 Relaunch of all hotels and resorts as
profitability and regain leadership borders open on 1 October 2021
ubstantial cost reductions made to

S Repositioning of SUN through strategic
improve margins and fixed cost base exercise and enhanced customer
experiences
ale of Kanuhura Hotel in Maldives
S
(May 2021) as part of strategy to Continue to transform SUN into a lean,
refocus resources and energy on the agile and highly digitalised organisation
enhancement and development of in order to achieve productivity and
offers and products in Mauritius efficiency gains
auritius Investment Corporation’s

M Leverage on new concepts and new
financial assistance allowed SUN group to consumer behaviours and habits to
reduce its indebtedness and consolidate generate revenues and differentiate SUN
its financial structure in this challenging Resorts’ hotels
environment
Pursue real estate development
artial reopening of resorts for
P opportunities
quarantine and local market driving
marginal revenue Accelerate sustainability and
inclusiveness journey
ngoing repositioning of SUN for a leaner,
O
agile and more resilient organisation
ew income-generating initiatives
N
launched with an enhanced Sales
& Marketing strategy and team,
to better address the new realities
and requirements of customers
74 75
PERFORMANCE
CIEL Agro
MUR 244 M
CIEL Share of Associate (Alteo Limited - 20.96%)
2020: MUR (23 M)
Operating Context
COVID-19 Impact
o impact on sugar operations
N
Complete closure of the Mauritian borders severely impacted the local tourism industry,
more specifically Anahita Golf & Spa Resort and Anahita Golf Club, both highly dependent on
neighbouring hotels
Market Dynamics
epreciation of Mauritian rupee benefitted sugar exports
D
Mauritian sugar industry profited from price recoveries in Europe
Adoption of the Biomass Framework in Mauritius, enabled clear remuneration of bagasse
Better market stability in Tanzania led to higher prices on the local market
Key Risks
3
Countries
3
Power Plants
Strategic
lobal sugar market
G
conditions and sugar
price volatility affecting
Cost competitiveness
ost pressures impacting
C
the sugar cluster’s
performance as a going
Agility
bility to attract and
A
retain management
competencies to support
performance concern business development
Unfavourable government Underutilisation of milling objectives
policy decisions (market capacities due to reduced Breakdown of major
and industry regulation) supply of cane industrial assets
3
Sugar Factories
5,858
Employees (Approx.) Financial Compliance – Health & Safety
Foreign exchange risk ompliance with safety
C
regulations and labour/
environmental laws and
regulations
76 77
PERFORMANCE
CIEL Agro
Performance & Strategy Performance & Strategy
Progress Report for FY21 Priorities for FY22 Progress Report for FY21 Priorities for FY22
Mauritius Mauritius Kenya Kenya

eaner and more agile operations:
L C
ontinue mechanisation of agricultural ood yields due to favorable climatic
G aintain support for cane development
M
reorganisation and mechanisation activities and factory automation strategy conditions, and a successful outreach for out-growers and improve factory
of harvest strategy with small planters reliability
Create additional value through
Strategic closure of refinery operation the optimal use of sugar cane ngoing efforts to increase cane growing
O rogress on cogeneration project to
P
by-products, namely bagasse and areas, currently reaching 15,500 hectares diversify revenues
ngoing research and development
O cane trash, for power generation and
initiatives regarding alternative sources further diversification into renewable reliminary studies launched for the
P
of biomass and food production energy sources development of a 100% bagasse-fueled
power plant
I ncreased power generated from bagasse Diversify agricultural efforts, with an
and cane trash exported to the grid as intensive deer farming project, adding
well as better efficiencies for energy a third poultry farm, and increasing the
cluster production of potatoes and tomatoes for How we #GoBeyond to Explore. Adapt. Innovate.
the Mauritian market
elayed sales at Anahita due to
D Anahita - Transforming green waste into compost
current context ocus on premium or special sugars to
F
capture new markets in countries such as
China and India
Rebranding and restructuring of the

property cluster
Complete the development of the

northern parcel of Anahita
Sale of non-strategic and abandoned

cane land
Continue developing the coastal

area in the east of the island through
new projects
Tanzania Tanzania
ombined impact of a significant volume
C Optimise the land bank and grow an
increase and an increase in retail prices additional area under cane within two
led to substantial growth for Tanzanian years
operations
Continuous development of biomass
production on site to increase electricity
production for the grid
Proactive management of pervasive

pests such as the Yellow Sugarcane Aphid
I mplementation of a holistic drainage Click on image to access video

master plan over the estate
78 79
OUR
ESG FOCUS
“
We consistently pursue good governance
and risk management intertwined with
key environmental and social targets.
- P. Arnaud Dalais
OUR ESG FOCUS
Environmental -
Activate Climate Response
Energy & Carbon Energy & Carbon
In absolute terms, our carbon footprint (total emissions) increased slightly compared to 2020 levels
due to a 27% increase in Textile (owing to revived production after a sharp drop in 2020), somewhat
mitigated by a further reduction in Hotels & Resorts.
Emissions per Cluster - tCO2eq
In relative terms, carbon intensity (the ratio of carbon footprint to financial revenue) decreased by
3.7% overall compared to 2019, which shows that emissions are still highly coupled with revenue.
7,099.73 The Hotels & Resorts value is off the chart at 20.4, due to the near absence of revenue caused by
the pandemic, while emissions from basic maintenance and operations could not be entirely avoided.
2021 10,750.93 66,717.81
To achieve the goal of reducing carbon intensity by 50% by 2030, we must adopt aggressive energy
efficiency measures, as well as renewables to replace fossil fuels.
6,753.40
View assumptions and revisions on page 88.
2020 23,514.02 52,679.17
4,228.66
2019 30.721.84 86,575.68 Intensity goal: Main emissions by source 2.6%
- 2021
-50%
2.6%
19.1%
- 20,000 40,000 60,000 80,000 100,000 120,000
by 2030 vs 2019 19.1%
Finance Healthcare Hotel & Resorts Textile
66.0% 12.3%
Carbon Intensity (tCO2e/m MUR)
66.0% 12.3%
Other Electricity
4.99 Coal HFO
Group 4.14 Other Electricity
5.18 Coal HFO
Hotels and 5.07
Resorts 4.64
2.37
Healthcare 2.84
1.69
1.05
Finance 0.98
1.19
6.39
Textile 5.07
7.13
0 2 4 6 8
2019 2020 2021
82 83
OUR ESG FOCUS
Environmental -
Value Chains: Water Value Chains: Suppliers & Waste
Water consumption remained stable in the Healthcare cluster, continued to drop in Hotels & Resorts, To date, clusters are implementing supplier assessments on sustainability/ESG, relevant to their
and increased again in Textile, although it remains lower than the 2019 baseline. Water consumption in industries at various levels. With supply chain traceability being increasingly important to customers,
the Finance and Properties clusters remain immaterial and are, as a result, not reported here. we anticipate a higher flow of information on this topic in the coming years. CIEL Textile has assessed
56% of its suppliers, while CIEL Finance assessed 11%. Such assessments are currently challenging in
the Healthcare sector, while CIEL Hotels & Resorts data was not reported due to significant COVID-19
disruption and potential re-shaping of its supplier base.
Total Water Consumption (m3)
Regarding waste, data verification was still being carried out at time of writing. Please visit our website
in the coming weeks for more information. None-the-less, we are pleased to highlight the efforts of
factories sending zero waste to landfills this financial year.
86,671
Healthcare
Hotels and 460,325

Resorts Ø WASTE FACTORIES
Asia “Waste to Wealth” Programme Our goal for waste to landfill
1,274,332
Textile
A
quarelle Bannerghatta
A
quarelle RCC
A
quarelle Samudra
-50%
by 2030 vs 2019
- 500,000 1,000,000 1,500,000 F
loreal Bangladesh
L
aguna India
2019 2020 2021
T
ropic India
CIEL Textile factories in Asia send

zero waste to landfills, thanks to
Potable Water Consumption (m3) a rigorous programme which
redistributes waste to several
companies for recycling and
upcycling, contributing to the
Textile
148,282 circular economy.
Finance
1,263
Healthcare
Hotels & 66,243
Resorts
460,326
84 85
OUR ESG FOCUS
Environmental -
Conservation & Regeneration
Our flagship conservation project in the Ferney Valley is preparing to ramp up capacity with a new The vegetation is graded according to the methodology from Wayne Pages and Gabriel d’Argent
nursery in the Ferney gardens, aimed at populating a new conservation zone on the coastline near (A vegetation survey of Mauritius to identify priority rainforest areas for conservation management, 1997).
Falaise Rouge. Ferney has also undertaken a full survey of its natural assets – terrestrial, riparian,
and coastal ecosystems – which resulted in a categorisation of our forests in terms of habitat quality and
indigenous flora content as shown below. This will enable a better prioritisation of forest restoration
efforts going forward, to maximize our impact on biodiversity and the Bambous Range ecosystem in
the Southeast of Mauritius.
Forest grade % Native Species Total Areas (Ha)
Grade 1 > 70% 325.59
Grade 2 50% to 70% 233.52 Grade 1 Grade 2
Grade 3 20% to 50% 408.85
Grade 4 < 20% 625.31
Ferney Forests - Total 1775 Ha Grade 3 Grade 4

The grading here depicts the evolution of invasive species on a forest area
Habitat restoration in Ferney Fauna present in Ferney

Grade 4 3 3,800 trees planted in the conservation zone 1 3 breeding pairs of Kestrels
39% since 2008 (endangered species)
Grade 1 1 ,142 trees planted in FY 2021 1 5 Kestrel chicks fledged in 2020/2021
20% 1 3 Ha restored as of June 2021 4 0 Echo Parakeets (vulnerable species)
3 7 plant varieties currently in nursery 4 2 Pink Pigeons (vulnerable species)
1 8 critically endangered species present in P opulation of over 10,000 Greater Mascarene
our forests Flying Fox (Fruit Bats) (endangered species)
4 3 endangered species present in our forests C uckoo shrikes & Paradise Flycatchers sighted
Grade 2
15%
Grade 3
26%
86 87
OUR ESG FOCUS
Environmental -
Sustainability Data: Key Assumptions:
Our current accounting method does not include the burning of wood - assumed as carbon neutral
Assumptions, Revisions, and Interpretation as per the GHG Protocol, however we are yet to ascertain under which circumstances wood is
being renewed and if it can indeed be considered carbon neutral. Emissions from burning brickets
(Annex page – reference made in “Activate Climate Response”. (made of materials such as waste carton and fabric) are not accounted due to low volume and
unknown emission factor. Scope 3 emissions are not yet considered, though a pilot project has been
initiated to build capacity on the methodology, which will also enable the setting of science-based
Scope climate targets.
Foster a Vibrant Workforce:

In terms of employee numbers, gender balance, and learning and development, this section considers
all CIEL clusters, including investee company Alteo.
Champion Inclusive Growth:

This section covers community empowerment extensively for the CIEL Foundation and CIEL clusters,
excluding Alteo and CIEL Properties, a new cluster working in close collaboration with the Foundation.
Local economy aspects are currently not covered as defined by the sustainability strategy,
due to data considered unreliable for Healthcare and the absence of data for Hotels & Resorts this
financial year. Local sourcing of food and beverage is however considered material for these clusters
and will require attention in the next financial year.
Activate Climate Response:

Under this pillar, we consider the impacts of four clusters, namely Textile, Finance, Healthcare and
Hotels & Resorts, same as for the Champion Inclusive Growth pillar. In the Finance cluster, this covers the
BNI MADAGASCAR and Bank One head offices only. In the Healthcare cluster, small clinics are not included –
we therefore focus on Wellkin Hospital and Clinique Darné for C-Care, and International Hospital
Kampala for IMG. In Hotels & Resorts, we consider the four main hotels in Mauritius, namely Ambre,
La Pirogue, Long Beach, and Sugar Beach. For Textile, all operational sites are included. CIEL Properties
as a new cluster with limited and small operations that are in some cases still taking shape, will begin
data collection and sustainability reporting in the next financial year.
Energy & Carbon
Baseline:
Our baseline calculations are reviewed every year to include emission factors and data that was
not previously available. For example, the 2017 grid emission factor for Madagascar was obtained
this financial year. While the real figure might have changed since 2017, we consider this value to be
more accurate than the world average or the African average grid emission factor and apply it to our
calculations for all financial years since FY 2019.
Further to this, CIEL Textile has implemented the UL 360 data gathering and reporting platform
this financial year and has been feeding this system with sustainability data from previous years.
This will allow a further refining of our baseline calculations.
Consistency of Analysis for Reliable Insight:

While we are continually striving to improve, we are satisfied with the consistency of our method and
the insights provided by our analysis, namely that our emissions and revenue remain highly coupled,
and that we must continue to implement mitigation measures.
Progress Towards our Goals:

In the Textile cluster, Tropic Knits is in the financing stage for a 1MW solar installation in Mauritius,
and the move of CFL to Madagascar will cause us to abandon coal as boiler fuel well ahead of 2030.
Various facilities in Textile and Healthcare are implementing advanced energy monitoring and efficiency
control systems, which will also be considered in other clusters.
88 89
OUR ESG FOCUS
Social - Champion Inclusive Growth

Community Empowerment – CSR by Clusters
CSR funding was directly impacted by the pandemic for most clusters, with priority given to preserving Channelled to CSR actions this FY
jobs and ensuring salaries of the workforce. Clusters were, however, able to contribute “in kind”
10.7 -44%
through various initiatives and reached a total number of beneficiaries close to that of FY 2020.
MUR M vs FY 2020
Funding per Cluster (MUR)
987,519 1,060,000
FY21 7,829,044
891,481
525,000
FY20 6,753.40 10,563,829 2,983,987 5,073,627
- 5,000,000 10,000,000 15,000,000 20,000,000
Beneficiaries per MUR 1000
40
Total No. of Beneficiaries per Cluster 30.94

30
23.84
FY21 21,256 30,550 49,210 425
20
10
FY20 60,900 21,000 19,000 760 6.29 5.76 7.04
3.74
0.40 1.45
0
- 20,000 40,000 60,000 80,000 100,000
FY21 FY20
Textile Healthcare Finance Hotels & Resorts Textile Healthcare Finance Hotels & Resorts
90 91
OUR ESG FOCUS

Community Empowerment – CSR by Clusters (Cont’d) CIEL Foundation
COVID-19 Related Actions The CIEL Foundation operates per calendar year, from January to December. The figures presented
The higher number of beneficiaries per one thousand rupee spend is due to clusters using more of here are for 2020. Amid the pandemic and with lockdown constraints, people living in poverty
their specific resources or technical capabilities during the pandemic, due to restricted funding. and with disabilities were hit the hardest by reduced economic activity and mobility. As their
For example, CIEL Healthcare’s doctors, offered free talks and advice to the public through online dependence on material support was exacerbated, the Foundation increased its proportional funding
webinars, and CIEL Textile donated large numbers of masks. In the numbers shown here, we counted allocation to these action areas, while also focusing strongly on health to protect vulnerable families
one unique beneficiary per individual participant. While it is difficult to establish the exact number of from COVID-19.
beneficiaries, we know that these actions benefited entire families, however they are not counted.
Like the various CSR actions of CIEL clusters, the Foundation’s reduced resources down 53% (versus 2019)
were optimised to reach beneficiaries with as much non-financial support as possible.
Funding per Action Category – FY21
Poverty
1,182,240 Disability
11%
7 3.3
220,246
Education 2%
722,214.89 Citizen
7% MUR M MUR M
1,419,103
13% 2019 Funding 2020 Funding
Health
7,224,240
67%
Promoting Lasting Impact

For the first time, we have separated records for long-term and one-off actions, as defined by our
sustainability strategy. This reveals that overall, long-term programmes represent 74.5% of funding
and support 76.1% of total beneficiaries, exceeding our 60% goal. This can be partly explained by
strict sanitary protocols not allowing gatherings, through which one-off community actions usually
take place. Should next year’s data confirm this, we will review our goals and/or our definition for
long-term actions for more meaningful impact.
Amount Invested in MUR Number of Beneficiaries
Hotels & Hotels &

Resorts Resorts
Finance Finance
Healthcare
Textile
- 4,000,000 8,000,000
Healthcare
Textile
- 20,000 40,000
MUR 3.3 M
-53%
vs FY 2020
Channelled to CSR actions this FY

Long Term One Off
92 93
OUR ESG FOCUS

CIEL Foundation (Cont’d) Crisis Response in the South-East of Mauritius
The coastal communities neighboring Ferney suffered successive shocks since 2020, with COVID-19
related lockdowns and the Wakashio oil spill. Already facing the lack of consumption from hotels,
fishermen could not work for several weeks. Ferney, in collaboration with the CIEL Foundation
Funding per Action Category
and with support from HSBC and CIEL Director Marc Ladreit de Lacharriere, implemented several
programmes for vulnerable families.
FY21 Health
FY21 Citizen 200,000 6% Food security packages included home gardening provisions with materials and consumables
703,000 21% FY20 3% (trays, tools, seeds, compost). They were further given egg-laying hens along with training, cages,
FY20 18% and food for six months. The programme also created part-time employment at La Vallee de Ferney
Conservation Trust, in forest restoration.
FY21 Education
100,000 3%
FY20 23% Rivière
Bois des Grand Grand
des Bambous TOTAL
Amourettes Port Sable
Créoles
Inner circle: 2020
Outer: 2021 Number of participants per village per project
Home garden 29 12 7 31 2 81
Egg laying chickens 17 2 2 14 4 39

FY21 Disability FY21 Poverty
1,057,600 32% 1,272,000 38% Rug mat 5 1 1 N/A N/A 7
FY20 30% FY20 26%
Financial litteracy 3 N/A 1 4 2 10
MITD 12 3 2 8 1 26
Ferney 16 3 N/A 7 1 27
Number of Beneficiaries
TOTAL 190
Disability 161
152
Poverty
1,613
719
Education
700
60
Health 574
- 500 1,000 1,500 2,000
FY20 FY21
94 95
OUR ESG FOCUS

Sustainable Offering CIEL Textile Assessment of Current Collections
Against the Eco-Index and 2025 Target
We consider our clients as key stakeholders in promoting sustainable and inclusive growth.
CIEL clusters are thus working on sustainable offerings at various levels, with BNI MADAGASCAR and
CIEL Textile championing this movement through microfinance and the eco-index, respectively. Actual Collection Projected Forecast
2021 2025
The CIEL Textile sub-clusters have assessed their collections, and started using this tool in product
development, marketing and sales, which empowers clients to understand the impact of their choices,
and thus select sustainable designs. Visit www.cieltextile.com for more information.
CIEL TEXTILE ECO-INDEX
The CIEL Textile Eco-Index is our internal rating system
CIEL TEXTILE ECO-INDEX
which asses sustainability aspects of our products.
The CIEL Textile Eco-Index is our internal rating system

which asses sustainability aspects of our products.
OUR COLOUR CODING SYSTEM
It allows us to assist and educate our creative teams designing responsible LOW IMPACT Products in the blue
products and drive our clients to make the right choice. 0-10 range have less ne-
OUR COLOUR CODINGgative
SYSTEM impact on the
environment
It allows us to assist and educate our creative teams designing responsible LOW IMPACT Products in the blue
products and drive our clients to make the right choice. 0-10 range have less ne-
THE RATINGS ARE BASED ON: 11-20
gative impact on the 16% 36% 22% 26% 13% 32% 18% 37% 15% 54% 18% 13% 15% 60% 25%
environment
01 Our Expertise
Fine Knits Knitwear Woven
02 The different processed and their impact 11-20
THE RATINGS ARE BASED ON: 21-40
03 Recognised accreditations (GOTS, Oeko-Tex)
04 HIGG Materials –Higg MSI, Higg FEM, Higg FSLM
01 Our Expertise
02 The different processed and their impact
03 Recognised accreditations (GOTS, Oeko-Tex) 21-40
41-65
04 HIGG Materials –Higg MSI, Higg FEM, Higg FSLM
OUR RATING CALCULATIONS :
Products in the red
Financial Inclusion by BNI MADAGASCAR
41-65 range have more In the local context of Madagascar, financial inclusion has literally been a
66-100 negative impact on
OUR RATING CALCULATIONS :
GARMENT RATING HIGH IMPACT the environment bankable investment, namely with KRED microfinance and other facilities
Products in the red which harness tech solutions, removing the need for lengthy and costly
range have more
YARN + FABRIC RATING 66-100 negative impact on travel to bank branches, for a variety of services. Visit www.bni.mg for
e the right choice. GARMENTMANUFACTURING
RATING + APPLICATIONS RATING
the environment
HIGH IMPACT
more information.
& FABR C FINISH

YARN + FABRICRIRATING ROIDER T PRIN + APPLICATIONS
MANUFACTURING SSES
CERATING PACKA ECO INDEX
RN B MB EN T RO S&
RATING
PLACEM
RA
ESSORIE
TRI & E
IC
GI
FIB , YA
WET P
RN & FA
ES
RAT G
NG RATIN
TING
RATING
RATING
MS
RE
RATING
1 4
IN
& FABR IC FINISH ROIDER T PRIN CESSES PACKA ECO INDEX

CC
YA
RN BR MB EN T RO S&
A G
RATING
PLACEM
RA
ESSORIE
TRI & E
IC
GI
FIB , YA
WET P
RN & FA
ES
RAT G
NG RATIN
TING
RATING
RATING
MS
RE
RATING
MUR M MUR M
IN
Our colour coding system:

CC
YA
A G
invested in Sustainable of sales revenue from
ating + wet processes rating + accessories & packaging and Inclusive R&D (FY20*) inclusive products (FY20)
Low impact (Products in the blue range have (Products in the red range have more
less negative impact on the environment) negative impact on the environment) *
BNI’s financial year runs from January to December
Ferney Agri-Hub
The Ferney Agri-Hub was launched in August 2020 to address the question of how to diversify agriculture
and improve food security in Mauritius while moving towards sustainable agriculture and Agri-Tech.
By March 2021, the 17 plots earmarked over 34 hectares were fully booked by agri-entrepreneurs who
0-10 11-20 21-40 41-65 66-100 employ 20 people from neighboring villages. Agri-Hub tenants must only use natural inputs approved
High impact by the FAREI (Food and Agriculture Research Extension Institute) to promote organic agriculture,
as synthetic chemicals are forbidden.
96 97
OUR ESG FOCUS
Corporate Governance Report

Financial year ended 30 June 2021
Group Profile – A Diversified Mauritian Investment Board of Directors of CIEL

Group with an International Footprint
Corporate Governance, Ethics, Investment Committee

Nomination & Remuneration (Formerly Strategic & Audit & Risk Committee
Committee Advisory Committee)
The Board delegates management to
CIEL Properties Hotels & Resorts

(Ferney Limited and CIEL (Sun Limited and Anahita
Properties Limited) Residences & Villas Limited)
Management Teams Management Teams
CIEL at a Glance
Public company listed on the Official Market of the Stock Exchange of Mauritius (“SEM”) Group Chief Executive
Jean-Pierre Dalais
Listed on the SEM Sustainability Index (SEMSI) since 29 March 2019
CIEL Agro CIEL Healthcare
Public Interest Entity as defined by the Financial Reporting Act 2004 Group Finance Director
(Alteo Limited) L. J. Jérôme De Chasteauneuf Management Team
Management Team
Operates six business clusters spread across 10 countries
With CIEL Head Office
Management Team in support
The Board of Directors (“Board”) of CIEL Limited (“CIEL”) is committed to maintain
high standards of corporate governance and acknowledges its responsibility for applying
and implementing the principles contained in the National Code of Corporate Governance
for Mauritius (2016) (“the Code”). Details on how CIEL has applied the Code’s principles are
set out in this report. CIEL also uses its website for online reporting purposes, in accordance
with the recommendations of the Code. You may refer to CIEL governance section on
http://www.cielgroup.com (“CIEL’s website”).
CIEL’s Organisational Chart and Statement of Accountabilities

The Board of CIEL is ultimately accountable and responsible for the performance and affairs CIEL Textile CIEL Finance
of the Group which operates within a defined governance framework through delegation Management Team Management Team
of authorities and clear lines of responsibility while enabling the Board to retain effective
control. During the financial year, CIEL reviewed its governance structure to efficiently
reduce the number of committees reporting to the Board. The Corporate Sustainability
Committee was dissolved and matters pertaining to corporate sustainability are henceforth The Group Chief Executive is responsible for the affairs of the Group and closely interacts with the
monitored by CIEL Head Office’s corporate sustainability department. Group sustainability CEOs of the Group. He has the support of the Group Finance Director and the management teams of
initiatives are communicated to the Board once or twice annually. Three Board committees CIEL Head Office, which provide a combination of corporate services and strategic support to the main
are tasked to provide specialist guidance and recommendations to the Board. operational clusters of CIEL.
98 99
OUR ESG FOCUS

CIEL’s Governance Structure Tenure of Directorships:

The role of the Board is to provide effective leadership and direction to enhance the long-term value
0 2 1 12
of the Group, for its shareholders and other stakeholders. The Board assumes its responsibility in
(i) overseeing the business affairs of the Group; and (ii) reviewing its strategic plans, performance objectives,
financial plans, annual budget, key operational initiatives, major funding, investment proposals, financial
performance reviews and corporate governance practices. It ensures that all legal and regulatory
requirements are met. The following governance documents, as approved by the Board of CIEL,
Between 0 Between 2 Between 4 More than
may be viewed on its website: Conflict of Interest/Related Party Transactions Policy | Share
and 2 years and 4 years and 6 years 6 years
Dealing Policy | Job Description of Senior Governance Position | Group Structure | Code of Ethics |
Board Charter | Whistle Blowing Policy | Constitution | Terms of Reference of Board Committees.
A review of the governance documents is performed annually and amendments are made
when necessary.
Quorum for the Board: 7 Directors
There have been no changes on the Board during the financial year.
The Structure of the Board and its Committees
Board Size and Structure Directors Gender Age Attendance Residence Category
The Board of CIEL is composed of directors coming from different industries and backgrounds with
strong business, international and management experience which are important considering the
nature and scope of the Group’s business and the number of board committees. The Board is satisfied P. Arnaud Dalais (Chairman) M 66 5/5 Mauritius NEC
that its composition is adequately balanced and that the current directors have the range of skills,
expertise and experience to carry out their duties properly. A sufficient number of directors do not Sébastien Coquard M 46 5/5 France NED
have a relationship with the organisation.
Guillaume Dalais M 39 5/5 Mauritius NED
15 5 6 Company
Secretary
Jean-Pierre Dalais
Marc Dalais
M
M
57
57
5/5
5/5
Mauritius
Mauritius
ED
NED
Type of mandate: Board meetings Decisions adopted CIEL Corporate Services Ltd R. Thierry Dalais M 62 5/5 Mauritius NED
Unitary Board of during the by way of written
15 Directors financial year resolutions in lieu Pierre Danon M 65 5/5 France INED
of holding Board
meetings L. J. Jérôme De Chasteauneuf M 55 5/5 Mauritius ED
Roger Espitalier Noël M 66 5/5 Mauritius NED
M. A. Louis Guimbeau M 71 5/5 Mauritius NED

Category of Directors: Gender Balance:
J. Harold Mayer M 56 5/5 Mauritius NED
14% 7%
Marc Ladreit de Lacharrière* M 80 0/5* France NED
Catherine McIlraith F 57 5/5 Mauritius INED
13% Jean-Louis Savoye M 48 5/5 France NED
Xavier Thiéblin M 78 5/5 France NED
Jacques Toupas,
*
M 42 5/5 France NED
Alternate of Marc Ladreit de Lacharrière
73%
NEC - Non-Executive Chairman NED - Non-Executive Director
93%
INED - Independent Non-Executive Director ED - Executive Director
ED NED INED Female Male

100 101
OUR ESG FOCUS

Independence on the Board Dedicated Committees Assisting the Board in its Duties
The independence criteria for directors are defined under the Mauritius Companies Act 2001. The Board delegates certain roles and responsibilities to its committees. Whilst it retains the overall
Catherine McIlraith and Pierre Danon still qualify as independent non-executive directors. responsibility, committees probe subjects more deeply and then report on the matters discussed,
decisions taken, and where appropriate, make recommendations on items requiring the approval of
the Board. The committees play a key role in supporting the Board. The company secretary of the Board
Time Commitment and Other Directorship Positions acts as secretary to these committees. Minutes of proceedings of committee meetings (except for the
CIEL’s directors ensure that they devote sufficient time to the Company in the performance of Corporate Governance, Ethics, Nomination & Remuneration Committee) are circulated to the Board
their duties. The Board is satisfied that, for the year under review, its members have met their time and the chairs of each of the committees report verbally on their activities. The Board is satisfied that
commitment expectations in respect of board and committee meetings and that they continue the committees are appropriately structured, skilled and competent to deal with both the Company’s
to discharge their responsibilities effectively. existing and emerging issues, and that they have effectively discharged their responsibilities during
the year under review according to their terms of reference. The terms of reference of the committees
are updated as and when necessary and are available for consultation on CIEL’s website. During the
Focus Areas of the Board during the Year financial year, those of the Strategic & Advisory Committee were amended to reflect a change of name
to Investment Committee and change in scope of focus.
Recurring Agenda Items Strategy, Performance, Governance and Risk,
Financial Monitoring Other Investment Committee
(Formerly known as Strategic & Advisory Committee)
eclaration of interests
D nnual and quarterly
A overnance structure
G
Minutes of proceedings financial statements Remuneration of the
of meetings Deep dive on CIEL Textile in Directors
Members Attendance
Reports from chairmen of the presence of the CEO Impact of COVID- 19 on R. Thierry Dalais, Chairman 3/3
Board committees CIEL corporate strategy the Group
3
Damien Braud 2/3
Quarterly investment Annual Report Group sustainability
reports, including Multi-currency notes initiatives Sébastien Coquard 3/3
economic updates of programme Risk dashboards for
countries within which Dividend policy the Group Meetings P. Arnaud Dalais 3/3
the Group operates, Budget Internal audit assessments
peer review and financial through the report from Jean-Pierre Dalais 3/3
results the Chairman of the Audit &
Pierre Danon 2/3
Risk Committee
L. J. Jérôme De Chasteauneuf 3/3
Board Processes and Attendance at Board/Committee Meetings

Main Terms of Reference
The main terms of reference of the Investment Committee, as amended by the
Documents are Board on 18 December 2020, are:
The Board meets at least circulated in advance
4 times a year. Ad-hoc through an online onsider investment and divestment propositions as put forward by
C
Dates of meetings are meetings may also be portal facilitating management from time to time
planned well in advance convened to deliberate the viewing of such Discuss and recommend to the Board all strategic investments or
(by September of the on urgent substantive papers, in order for divestments to be made by the Company and transactions involving more
previous calendar year). matters. Decisions of the the Directors to than 1% of the Group net asset value
Board are also taken by way devote sufficient time
of written resolutions. towards the reading
of these documents. Focus Areas during the Year
udget FY 2022
B
The chairman of the Board, in collaboration with the company secretary and management, ensure that Funding requirements of subsidiaries
all directors are provided with appropriate, reliable and timely information to enable them to discharge CIEL’s corporate strategy
their duties effectively and reach informed decisions. CIEL’s investment portfolio
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OUR ESG FOCUS

Audit & Risk Committee Corporate Governance, Ethics, Nomination & Remuneration Committee
4
Members Attendance Members Attendance
Meetings
Catherine McIlraith, Chairman
Pierre Danon
M. A. Louis Guimbeau
4/4
4/4
4/4
3
Meetings
Pierre Danon, Chairman
P. Arnaud Dalais
R. Thierry Dalais
3/3
3/3
3/3
Xavier Thiéblin 3/3

xamine and review the quality and integrity of the financial statements
E
(Company and Group) and any formal announcements relating to the
Company’s financial performance, before submission to the Board Recommend corporate governance provisions to be adopted so that the
Review arrangements and modalities by which any staff of the Company may, Board remains effective and complies with prevailing corporate governance
in confidence, raise concerns about possible improprieties in matters of principles
financial reporting, ensuring that arrangements are in place for the proper Approve the bonus/remuneration for the executives.
investigation of such matters, and for appropriate follow-up action Recommend to the Board the directors’ remuneration, including the
Assess the robustness of the Company’s internal control including internal chairman fee
financial control and business risk management Recommend new Board and senior executive nominations.
Maintain an effective internal control system including the system(s) Monitor the implementation of the code of ethics and set the tone for its
established to identify, assess, manage and monitor risks implementation
Approve appointment of internal auditor and their fees
Evaluate and approve the annual internal audit work plan and consider reports
pertaining to findings of internal audits on a periodic basis Focus Areas during the Year
Oversee the process for selecting the external auditor, assess the continuing orporate governance report
C
independence of the external auditor and approve the audit fees Executives’ bonus
Review annually in presence of the external auditor their management letter Updated succession plan for the Executives of the Group and those of
and report on audit CIEL Head Office
Update of governance documents
Head Office restructuring and financing requirements
Focus Areas during the Year Group CEO’s remuneration
udited accounts and management letter
A Directors’ fees
External audit plan
External audit fees
Risk report for the annual report
Quarterly condensed financial statements and financial review documents
Internal audit reports
Internal audit tender exercise
Risk management reports and risk dashboards
Material litigation cases
Audit & Risk Committee effectiveness survey report
104 105
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Directors’ Profiles
The biographical details of the directors of the Company are provided hereunder.
P. ARNAUD DALAIS SÉBASTIEN COQUARD GUILLAUME DALAIS JEAN-PIERRE DALAIS

Chairman/Non-Executive Director, Non-Executive Director, Non-Executive Director, Executive Director and Group Chief Executive,
joined the Board in November 1991 joined the Board in May 2014 joined the Board in June 2019 joined the Board in February 1995
Skills and Experience: Skills and Experience: Skills and Experience: Skills and Experience:
oined the CIEL Group in August 1977

J anaging Director at Peugeot Invest, the
M ormer experience in the investment
F oined CIEL Group in January 1992 and is its
J
Appointed Group Chief Executive and listed investment company majority-owned Banking sector by working at Metier in South Group Chief Executive since January 2017,
Director in November 1991 by the Peugeot family Africa and CIEL Capital Limited in Mauritius overseeing all Group operations
Under his leadership, the CIEL Group at large Representative of Peugeot Invest Assets on Joined the CIEL Textile Group in 2010 Was formerly Executive Director at CIEL,
went through an important growth both the Board of Directors of OPCI Lapillus II and Appointed Executive Director of the Knits focusing particularly on the development
locally and internationally IDI Emerging Markets SA Cluster of the CIEL Textile Group in 2012 of the Group’s Hotels & Resorts,
Plays an active role at the level of the Former representative of Peugeot Invest Chief Executive Officer of the Knitwear Financial Services and Healthcare clusters
Mauritian private sector and has assumed on the Board of Directors of Onet, Ipsos, cluster of the CIEL Textile Group between Before that, Jean-Pierre Dalais was the Chief
the chairmanship of several organisations LT Participations and IDI SCA July 2016 and June 2020 Executive Officer of CIEL Investment Limited
including the Joint Economic Council from Director of Peugeot Invest UK Ltd CEO of CIEL Properties since 01 July 2020 Graduated with an MBA from the
2000 to 2002 and Business Mauritius from Held long-term investments positions at International University of America,
2015 to 2017 Allianz France, worked at Oddo Corporate Directorships in other Listed Companies: San Francisco, and previously worked at
Founder and Chairman of Mercoeur Finance on M&A and ECM transactions and in Arthur Andersen (Mauritius and France)
Investment Ltd the corporate banking division of Paribas C-Care (Mauritius) Ltd
Directorships in other Listed Companies:
Directorships in other Listed Companies: Directorships in other Listed Companies: Core Competencies:
Alteo Limited, Phoenix Beverages Limited
Alteo Limited, Sun Limited None Private equity, textile, manufacturing, (Alternate Director), Sun Limited (Chairman)
entrepreneurship, strategic business
Core Competencies: Core Competencies: development, deal structuring Core Competencies:
Leadership, entrepreneurship, deal structuring, Investment, corporate finance, capital Strategy and corporate finance, building
business management, strategic development, markets, valuation business partnership, international development,
hotel & property development new business opportunities, hotel & property
development
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Directors’ Profiles (Cont’d)
MARC DALAIS R. THIERRY DALAIS PIERRE DANON L. J. JÉRÔME DE CHASTEAUNEUF

Non-Executive Director, Non-Executive Director, Independent Non-Executive Director, Executive Director and Group Finance Director,
joined the Board in June 2017 joined the Board in August 2013 joined the Board in January 2014 joined the Board in April 2012
ounder and Executive Chairman of Celero

F ore than 35 years’ experience in the
M Chairman of Data Group-Volia in Kiev, Q
ualified from The London School of
group, a leading logistics and shipping financial services and private equity the Ukrainian leading cable and broadband Economics - BSc Econ (Accounting & Finance)
group operating mainly in Mauritius and investment industry company Former working experience with
Madagascar Co-founder of two private equity Chairman of Procontact, a call center PriceWaterhouseCoopers in the UK, where
Previous international working experience investment firms and acted as a key person dedicated to small and medium-sized French he qualified as a Chartered Accountant
with an international shipping company in in numerous private investment programs businesses located in the Indian Ocean Key leading position within the CIEL Group,
RSA and the Bollore group in Paris over the last 30 years Former Chairman of Eircom in Dublin and becoming its Head of Finance in 2000
Worked at IBL group as General Manager of Current and former director and trustee TDC in Copenhagen, Vice Chairman of Involved in the financial reengineering
a trading division then heading and growing on numerous boards, industry bodies, AgroGeneration, a public company listed which accompanied the development of the
its Aviation, Logistics & Shipping division in not for profit foundations, including listed on the Alternext of NYSE, Chief Operating CIEL Group
the Indian Ocean companies in Mauritius and abroad Officer of the Capgemini Group, one of the Currently representing CIEL on numerous
Served on boards of Mauritius Export Completed degrees in Commerce and world’s foremost providers of consulting, boards of subsidiaries
Association and a company pioneering Accounting at the University of the technology and outsourcing services, Serves as independent non-executive
Freeport operations in Mauritius Witwatersrand and qualified as a Chartered Chief Officer of British Telecom Retail and director on the Board of the Stock Exchange
Accountant in South Africa non-executive Director of Standard Life in of Mauritius Ltd
Directorships in other Listed Companies: Edinburgh
Directorships in other Listed Companies: Former Chairman of Solocal Group, Directorships in other Listed Companies:
None a European leader in digital communication
Sun Limited Alteo Limited, Harel Mallac & Co. Limited,
Core Competencies: Directorships in other Listed Companies: Sun Limited
Core Competencies:
Logistics, business and management, strategic None Core Competencies:
planning, leadership Investment management and corporate
finance, entrepreneurship and business Core Competencies: Business development and finance,
development, private equity investment accounting & audit, strategic development,
activities across numerous industry sectors Digital, international business management, deal structuring
entrepreneurship, deal structuring
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ROGER ESPITALIER NOËL M. A. LOUIS GUIMBEAU J. HAROLD MAYER MARC LADREIT DE LACHARRIÈRE
Non-Executive Director, Non-Executive Director, Non-Executive Director, Non-Executive Director,
joined the Board in January 2014 joined the Board in July 1991 joined the Board in January 2014 joined the Board in September 2014
ormer Corporate Sustainability Advisor of CIEL

F eld senior positions in different sectors
H Retired as CEO of the CIEL Textile Group on Founder of Fimalac, a formerly listed
Former General Manager of Floreal Knitwear of the Mauritian economy, gaining a vast 30 June 2020 company held by Group Marc de Lacharrière,
Limited experience in strategy development, Was formerly Chief Executive Officer of the which operates in four business areas:
Holds more than 35 years’ experience in the administration, finance and accounting until CIEL Textile Group since 2006 capital investment with Warburg Pincus,
textile industry his retirement in 2010 He joined CIEL Textile in 1990 and has digital media in entertainment through
Involved in the restructuring and restart of Co-founder of La Meule Permaculture Farm been holding key positions within the Webedia, entertainment with the
the Madagascar Production Units after the in 2014, a sustainable living project Group since then. He started his career as organisation of shows and venue
political unrest of 2001, and as from 2008, Former Director of Sun Limited Head of Finance of New Island Clothing management (FIMALAC Entertainment),
acting as consultant for the CIEL Textile and was promoted General Manager of and leisure activities and hotels through
Limited where his activities were focused on Directorships in other Listed Companies: Aquarelle Clothing Ltd in 1995. He was also the Group Barrière
the environmental, logistics, utilities as well Chief Operating Officer of the clothing Former Executive of Banque de Suez et
as the retail aspects of the Knits division None operations de l’Union des Mines, which was renamed
He is a qualified Chartered Accountant and Indosuez following the integration of
Directorships in other Listed Companies: Core Competencies: holds a bachelor’s degree in Commerce Banque de l’Indochine
Offers property advisory and transaction Former CFO of L’Oréal where he
ENL Limited, Phoenix Beverages Limited Finance, accounting, business management progressively became Vice-Chairman
services (Horizon Property Partners)
(Alternate Director) and Phoenix Investment Acts as corporate consultant on strategy, Deputy CEO
Limited (Alternate Director) finance and operational excellence
Core Competencies: Directorships in other Listed Companies:
Société Fermière du Casino Municipal de
Textile, manufacturing and operations, Sun Limited, Omnicane Limited (Chairman) Cannes (SFCMC)
environment and sustainability
Core Competencies: Core Competencies:
Corporate finance, accounting, operational International business and management,

excellence, textile, entrepreneurship. leisure and hospitality
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OUR ESG FOCUS

CATHERINE MCILRAITH JEAN-LOUIS SAVOYE XAVIER THIÉBLIN JACQUES TOUPAS

Independent Non-Executive Director, Non-Executive Director, Non-Executive Director, Joined the Board as Alternate Director of
joined the Board in January 2015 joined the Board in September 2017 joined the Board in December 2013 Marc Ladreit de Lacharrière in February 2016
ember of the South African Institute of

M eputy General Manager of Dentressangle,
D Joined Société Sucrière de Quartier Français Joined Fimalac Group in 2009. Member
Chartered Accountants since 1992 a French société par actions simplifiée in 1970 of its investment team and responsible
Fellow Member of the Mauritius Institute which is the investment holding company of Former Chairman of that group which of the financial portfolio monitoring and
of Directors the Dentressangle family became a major player of the sugar industry investment
Serves as an Independent Non-Executive Has been instrumental in helping Played important roles in the sectors of sugar Serves as Board member of various Fimalac
Director and as a member of various Dentressangle to realise its investment and rum, in Réunion Island, Paris and Brussels. Group’s subsidiaries
Committees of several public and private strategy during the last 16 years Manages and administers several companies, Former working experience in investment
companies in Mauritius, South Africa Prior to joining Dentressangle in 2003 including OXACO, a family holding which banking, both in Paris and London and
and England as CFO, Jean-Louis Savoye, served with PwC invests in the Indian Ocean and Europe and started his career at Arthur Andersen in Paris
Served her Articles with Ernst & Young in and ran due-diligences acquisitions in M&A assumes some professional responsibilities as a financial auditor prior to moving to PwC
Johannesburg before joining the investment for various Private Equity firms and French in several enterprises as a senior auditor and later as a manager in
banking industry where she held senior leading industrial companies the Transaction Services department.
positions in corporate and specialised finance Is a graduate of the Toulouse Business Directorships in other Listed Companies: Worked in Private Equity as a manager at
for Ridge Corporate Finance, BoE NatWest School with a major in Finance European Capital
and BoE Merchant Bank in Johannesburg None
Former Head of Banking at Investec Bank Directorships in other Listed Companies: Directorships in other Listed Companies:
(Mauritius Branch) Core Competencies:
Sun Limited, Tessi None
International business and management,
Core Competencies: agro-industry, entrepreneurship Core Competencies:
Astoria Investments Ltd, Grit Real Estate
IncomeGroup Limited, Les Gaz Industriels Ltd, Finance, accounting, mergers & acquisition, Finance, accounting, audit, private equity,
Paradise Hospitality Group Ltd, The Mauritius private equity, international business and international business management
Union Assurance Company Limited, MUA Limited management, property investment
Core Competencies:
Corporate finance, accounting, audit,

investment banking
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Director Appointment Procedures Induction of the Directors

The Board assumes its responsibility for the appointment of new directors, as well as their induction
through a process which is facilitated by the company secretary. All directors have unrestricted access
Appointment and Re-Election of Directors/Chairman to the Company’s records. There has been no appointment during the financial year under review.
he board charter provides that the directors shall be a natural person of not less than
T Professional Development
18 years old and not more than 80 years old As part of their duties as directors, it is critical for Board members to have a thorough knowledge of
The board charter also provides that the Board chairman shall not be older than the environment within which the clusters of the Group operate. An investment report is issued to
75 years old and shall hold office for a period of five years and may, at the term of his the directors on a quarterly basis; it includes economic updates on countries within which the Group
office, be re-elected by the Board for a further period of five years or such other term operates, peer review and financial results. No other training was offered to the directors.
Step 1 as may be determined by simple majority of the Board
The chairmanship of P. Arnaud Dalais has been renewed until 24 January 2024. Succession Planning
The Corporate Governance, Ethics, Nomination & Remuneration Committee The Board assumes its responsibility for the succession planning of its clusters’ leaders, which is a
recommends all new appointments on the Board and committees. Skills, knowledge, systematic effort and process of identifying and developing candidates for key leadership positions
industry experience, diversity and independence are important factors that are being over time to ensure the continuity of management and leadership in an organisation. The objective
considered prior to recommending any appointment of succession planning is to ensure that the organisation continues to operate successfully when
individuals occupying critical positions and hard to replace competencies depart. As part of its terms of
reference, the Corporate Governance, Ethics, Nomination & Remuneration Committee has reviewed,
oard approval - The directors have power at any time, and from time to time,
B on 28 June 2021 an updated succession plan for key executives of the Group.
to appoint any person to be a director, either to fill a casual vacancy or as an addition
It has identified Top 10 roles to kick-start the succession planning process as part of a long-term
to the existing directors so that the total number of directors shall not at any time
initiative to prepare potential candidates. Incumbents in the current Top 10 roles were consulted for
Step 2 exceed the number fixed in accordance with the constitution
their inputs on succession plan. The committee will track and monitor the progress achieved in the
The director appointed to fill up the vacancy or as an addition to the existing directors
implementation of the succession plan. The successors were identified in 4 categories, namely:
shall hold office only until the next following annual meeting of shareholders and
shall then be eligible for re-election
The individual is ready to step into the role/job/position in case of an
Emergency emergency vacancy but may not be the most suitable successor long-term.
Typically oversees role for 3-6 months pending permanent replacement.
Step 3 Induction of the directors upon appointment This indicates that this employee was in the highest level of readiness and
Ready Now could transition into the role with minimal development.
The employee would be ready for the role within the next two to three years
Ready C+1 and may include one additional role or assignment for development purposes.
oard nomination submitted for approval by the shareholders at Annual Meeting

B
(“AM”) The employee will be ready for the role in 3 to 5 years and may include one or
Ready C+2
Step 4 Directors are also re-elected annually at the AM by way of separate resolutions. two additional roles or assignments for development purposes.
Directors over the age of 70 are appointed at the AM in accordance with section 138(6)
of the Companies Act 2001
Briefing with the Briefing by the Briefings with

chairman of the Group company the CEOs of each Site visits
Board and Group secretary cluster
Chief Executive
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Directors’ Duties, Remuneration and Performance A whistle blowing template has been defined by the ARC to enable entities of the Group record the
number, source and type of complaints received on a monthly basis. The template also helps to
assess the trend in the number of complaints received, the number of cases under investigation and
Legal Duties those resolved.
Directors are made aware of their legal duties upon their appointment and are reminded of same
annually by the company secretary when asked to update the register of interests. Several documents
Conflict of Interests/Related Party Transactions Policy
and policies have also been implemented to help them fulfil their roles, namely, the code of ethics,
conflict of interest/related party transactions policy, share dealings policy and board charter. Transactions with related parties are disclosed in the financial statements. A Conflict of Interest/
Related Party Transactions Policy has been approved by the Board to ensure that the deliberations
and decisions made by CIEL are transparent and in the best interests of the Company. It also aims to
Code of Ethics and Whistle Blowing Policy protect the interests of the officers from any appearance of impropriety and to ensure compliance
CIEL has, over the years and since the beginning of the Group in 1912, developed a unique way of doing with statutory disclosures and law. Notwithstanding the above, directors of CIEL are also invited by
business. CIEL constantly wants to reaffirm to its stakeholders its strong commitment in doing business the company secretary, on an annual basis, to notify the Company of any direct and indirect interest in
ethically and sustainably and believes that ethics start at the top, with its Board, senior management any transactions or proposed transaction with the Company. Declarations made by the directors are
extended to employees of the Group, business partners and other stakeholders. It is in that spirit, that entered in the interests’ register which is maintained by the company secretary; same is available for
the Board has developed and approved a code of ethics, shared and acknowledged by the employees inspection by the shareholders upon written request to the company secretary.
at the head office.
The code of ethics highlights key areas which CIEL believes are crucial in doing business fairly and
Information, Information Technology and Information Security Governance
ethically, namely:
Board Information
The chairman of the Board, with the assistance of the company secretary, ensures that directors
receive the necessary information for them to perform their duties and that the Board has sufficient
Business Workplace Data Reputation & Environmental time for consultation and decision-making.
Integrity Culture Privacy Goodwill & Social Values
Information Technology Policy
An Information Technology Policy has been created using accepted standards (ITIL and COBIT 5) to
regulate the use, security standards, control and access rights for the entities of CIEL, hosted at the
Amendments are made to the code of ethics as and when required. The code of ethics includes a
Company’s head office in Ebène. The Information Technology Policy, as approved by the Board, is being
whistle blowing mechanism, which is a confidential and anonymous channel for all internal and
implemented, monitored and revised as needed by the IT and Digital Officer. The document has been
external stakeholders to express their concerns about any perceived wrong-doings, malpractices or
circulated to all the staff using the Information Technology Infrastructure at Company’s Head Office
improprieties as defined as follows:
in Ebène, and awareness sessions are planned in a timely manner for them to commit to it. Even
though each cluster of the Group operates its own IT policy, a Group IT Forum has been launched
Any person wishing to blow the whistle (on an anonymous basis if so desired) shall report by CIEL, whereat critical IT-related issues are debated from a Group-wide perspective. For example,
same to the Whistle Blowing Screening Committee comprising of the CIEL Group Risk CIEL Finance cyber security forum has been extended to all companies of the Group. A budget for
Step 1 Officer and a member of the legal team. Alternatively, if the person feels that the Whistle information technology is allocated annually, based on business needs for each financial year.
Blowing Screening Committee is not the appropriate forum to receive the complaint,
he/she may report same to the chairman of CIEL’s Audit & Risk Committee (“ARC”).
EU General Data Protections Regulations
In compliance with the EU General Data Protection Regulations (“GDPR”) and the Data Protection
The role of the Whistle Blowing Screening Committee is only to screen the complaint, Act 2017, CIEL has approved (i) a Group Data Privacy Policy (“Group Policy”) with a view to promoting a
to determine whether the complaint is genuine and worth investigating/actioning. If so, privacy culture within the Group and ensuring that all clusters, business units and employees protect
Step 2 the Whistle Blowing Screening Committee shall forward the complaint to the chairman the privacy of personal information of individuals in their daily operations and (ii) a Personal Data Breach
of the ARC of CIEL. Policy to define the methodology for assessing the severity of any potential personal data breach,
the escalation process when discovering a breach and the procedures to notify the relevant authorities
in the event of a breach. The Group Policy defines the Group’s requirements regarding the collection,
The chairman of the ARC of CIEL, upon receiving a complaint, forwards the complaint storage, use, transmission, disclosure to third parties and retention of personal information. The Group
to the chairman of the relevant cluster’s ARC if the complaint concerns a cluster or Policy is used as a general guideline to the clusters and business units, which remain responsible to
a business unit, or to the CIEL Group Chief Executive Officer or members of CIEL’s adopt their own policies on data privacy to address the specific context of their respective activities
Step 3 ARC, if the complaint pertains to CIEL, who shall, in turn, subject to any applicable law, without derogating from the core principles.
in their own discretion (i) decide on appropriate actions to be conducted to resolve the
issues (ii) channel the complaint to the relevant parties for investigation and (iii) ensure
that the necessary investigations are carried out.
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Senior Management Team of CIEL and CEOs of CIEL’s Subsidiaries

LAKSHMANA BHEENICK
Chief Executive Officer of CIEL Finance
Since 01 March 2021, Lakshmana Bheenick is the CEO of CIEL Finance.

He joined Barclays Bank PLC (Mauritius Branch) in March 1996 and held
various positions - FX trader, Head Market Making & Liquidity Management,
Treasurer. He then moved to Standard Bank (Mauritius) Limited in
June 2006 as Head Global Markets (Treasurer) and was appointed
Chief Executive in July 2010. Lakshmana Bheenick is a graduate in
BA Economics from the University of Manchester and also holds an
ACI Dealing Certificate. He holds an Executive Education MIT Sloan School
of Management and has also been on a leadership programme with
Oxford SAID Business. Former Director and Vice Chairman of the Mauritius Bankers Association (MBA).
JEAN-PIERRE DALAIS GUILLAUME DALAIS L. J. JÉRÔME DE
Group Chief Executive of CIEL Chief Executive Officer of CHASTEAUNEUF
Refer to Directors’ Profiles CIEL Properties Group Finance Director of CIEL HÉLÈNE ECHEVIN
Refer to Directors’ Profiles Refer to Directors’ Profiles Chief Executive Officer of CIEL Healthcare:
ERIC DORCHIES Since 1 July 2019, Hélène Echevin is the Chief Executive Officer of
CIEL Healthcare Ltd which regroups all our healthcare activities – C-Care
Chief Executive Officer of CIEL Textile (Mauritius), IMG (Uganda) and Hygeia (Nigeria). In this capacity, she is
also the Executive Chairman of C-Care (Mauritius) Ltd and sits on the
Eric Dorchies is the Chief Executive Officer of CIEL Textile since Board of Directors of CIEL Healthcare. Since joining CIEL in March 2017,
1 July 2020. In this capacity, he also sits on the Board of CIEL Textile she has played a key role developing our healthcare portfolio and
Limited (“CTL”). CTL has strategic geographic positioning with leading CIEL’s operational excellence journey. Prior to joining CIEL,
manufacturing locations in Mauritius, Madagascar, India and Bangladesh. Hélène worked for Eclosia Group and Harel Mallac Group and counts
It is on these three main pillars: “our talents, sustainable development 17 years of experience in operations and project management,
and digitalisation” that CTL will continue to accelerate its transformation. at both company and group levels. She holds an engineering degree in Food Technology from
Eric Dorchies has a long-standing career in CTL group which he joined in Polytech, France and completed her academic skills by an executive management program at INSEAD.
1998 as Chief Executive Officer of Consolidated Fabrics Limited. He was Hélène Echevin was the first lady President of the Mauritius Chamber of Commerce. She is a member
appointed Managing Director of Aquarelle Clothing Ltd in 2003 and of the board of Maurilait Ltd and MARENA. She is a board member of Sun Limited and CIEL Textile Limited.
became the Chief Executive Officer of the woven cluster from 2008 till 2019, instrumental in driving several
strategic initiatives for the group bringing it to an international level. More recently, in October 2017,
he was appointed CTL’s Chief Operations Officer. Eric Dorchies has a solid track record in the textile
industry with strong marketing capabilities. Prior to joining CTL, he was leading his own textile Directors’ and Officers’ Liability Insurance
company in Europe. He had graduated in Business and Finance from ESCP Europe (Ecole Supérieure de A Directors’ and Officers’ Liability insurance policy has been subscribed by CIEL covering the Company,
Commerce de Paris). its subsidiaries and some of its associates.
FRANCOIS EYNAUD Share Dealing Policy

Chief Executive Officer of SUN Directors ensure that their dealings in the shares of the Company are conducted in accordance with the
principles of the Model Code for Securities Transactions by Directors of Listed Companies, as detailed
Francois Eynaud is the Chief Executive Officer of SUN since in Appendix 6 of Listing Rules of the SEM. In that spirit, the Board has approved a Share Dealing Policy
1 September 2019. Prior to joining SUN, Francois Eynaud was the CEO that reiterates the procedures to provide clear guidance to the Directors and Officers of CIEL on the
of Veranda Leisure & Hospitality (“VLH”), managing the Hotels Division practice to be followed when dealing in shares of the Company to avoid the abuse of price-sensitive
of Rogers Group, where he spent 11 years. Before joining VLH, he had information (insider dealing). Directors are strictly prohibited to deal in shares of the Company during
spent 14 years with CIEL Textile where he was Executive Director at close periods.
Tropic Knits. He was President of AHRIM (the National Hotel
Association) in 2013 and 2014. Prior to returning to Mauritius in 1991,
he has worked 7 years at SAGEM France as Export Director, Board Evaluation
Country Manager in the Caribbean and the UK. He holds a French Business In a spirit of containing the expenses to the minimum following the severe impact of the COVID-19
School Diploma (Institut Commercial de Nancy – ICN). pandemic, the Board has resolved to defer the Board evaluation by an additional year; same will be
performed over the financial year ending 30 June 2022.
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Directors’ and Officers’ Liability Insurance (Cont’d) The remuneration of the executive directors (“the Scheme”) is composed of a basic pay and an
incentive scheme linked to (i) market capitalisation growth with an annual high watermark principle,
Statement of Remuneration Policy (ii) annual ordinary dividend pay-out and (iii) Group profit after tax. The main objective of the Scheme
is to motivate the executives towards increasing the total value of the Company and reward them
The Board has approved a policy that sets the purpose, process, performance measures and quantum
for the creation of long-term value. This bonus is payable partly in cash and partly in ordinary shares,
for the remuneration of its directors. CIEL strives towards remunerating its directors in a manner
out of the treasury shares held by the Company. The remuneration and benefits paid to the executive
that supports the achievements of CIEL’s strategic objectives, while attracting and retaining scarce
directors of CIEL for the financial year ended 30 June 2021 amounts to MUR 31.6M. The remuneration
skills and rewarding high levels of performance. The Corporate Governance, Ethics, Nomination &
of the executive directors has not been disclosed individually due to its commercially sensitive nature.
Remuneration Committee determines the adequate remuneration to be paid to the Directors.
There are no established policies for remunerating executive directors approaching retirement. The chairman of the Board is not entitled to an incentive scheme.
This will be determined by the Board as and when required.
The remuneration and benefits received, or due and receivable by the directors of the Company and its
subsidiaries as at 30 June 2021, have been disclosed in the section Other Statutory Disclosures made
Directors’ Remuneration and Benefits
pursuant section 221 of the Mauritius Companies Act 2001.
Directors of CIEL were entitled to the following remuneration for the financial year under review.
They have voluntarily decided to reduce partly or wholly the amount of their remuneration so that
such amount be donated by the Company to the CIEL COVID Fund (please refer to the next section CIEL COVID Fund
for more information on the CIEL COVID Fund). The figures below represent the full amount Directors The directors of CIEL have voluntarily agreed to donate part or the whole amount of their remuneration
were entitled to before donation to the CIEL Covid Fund. to the CIEL COVID Fund which has been created in view of providing employees of the Group impacted
by the COVID-19 crisis with adequate support through specific medical assistance, training and/or
Corporate Governance, empowerment programmes. The fund focuses on programmes that capitalise on the Group’s internal
Audit & Risk Investment
Board4 Ethics, Nomination Total expertise. These actions are categorised as follows:
Directors Committee4 Committee5
(MUR) & Remuneration (MUR)
(MUR) (MUR)
Committee4 (MUR)
P. Arnaud Dalais
2,376,000 NIL 100,000 150,000 2,626,000
(Chairman)1
Sébastien Coquard 350,000 NIL NIL 150,000 500,000
Guillaume Dalais 350,000 NIL NIL NIL 350,000 Health and Wellbeing Staff Mobility Training &
sychological support and
P Listing of affected Strategic Support
Marc Dalais 350,000 NIL NIL NIL 350,000
counselling workforce and vacancies ormal certification and
F
R. Thierry Dalais 350,000 NIL 100,000 225,000 675,000 Medical assistance CV writing and training
Pierre Danon2 400,000 200,000 150,000 100,000 850,000 preparation for Start-up/entrepreneurship
interviews training and assistance
Roger Espitalier Noël 350.000 NIL NIL NIL 350,000
M. A. Louis Guimbeau 350,000 200,000 NIL NIL 550,000 A project manager and team have been deployed to conduct the activities, overseen by a high-level
J. Harold Mayer 350,000 NIL NIL NIL 350,000 fund committee. Appeal for funding has been made to the companies of the Group, its directors,
main shareholders of CIEL, DFIs and employees.
Marc Ladreit de
350,000 NIL NIL NIL 350,000
Lacharrière
Catherine McIlraith 400,000 350,000 NIL NIL 750,000
Jean-Louis Savoye3 350,000 NIL NIL NIL 350,000
Xavier Thiéblin 175,000 NIL 50,000 NIL 225,000
Note 1: The Chairman of the Board also received travelling allowance of MUR 1.47M in addition to the above
Note 2: Payment to Cordial Investments and Consulting Limited
Note 3: Payment to Di Cirne Holding Ltd
Note 4: Fixed remuneration only
Note 5: Variable remuneration (attendance fee)
Non-executive directors have not received remuneration in the form of share options or bonuses
associated with organisational performance.
The executive directors are remunerated by CIEL Corporate Services Ltd (a wholly owned subsidiary
of CIEL), with which CIEL holds an agreement for the provision of combined corporate services and
strategic support.
120 121
OUR ESG FOCUS

Risk Governance and Internal Control The Group also held an Annual Sustainability Forum in May 2021, gathering all CIEL executives and top
managers online, with the view to raise awareness, drive further engagement, and accelerate our
Environmental and Social agenda.
Risk Management
The Board has the ultimate responsibility for risk governance and internal control systems as well as
determining the nature and extent of the principal risks it is willing to take to achieve its strategic
Community Engagement
objectives, while ensuring that an appropriate risk culture has been embedded throughout the The Group pursues its inclusive growth agenda through on-going community actions at enterprise
Group. CIEL’s Enterprise Risk Management (“ERM”) has been designed to facilitate the identification, and site levels. However, the sanitary restrictions associated with the handling of the COVID-19
assessment and mitigation of the inherent business risks to which the Company is exposed, while pandemic have had a negative impact on community actions and initiatives, particularly from an
providing reasonable assurances pertaining to compliance with regulatory obligations, reliability employee participation standpoint. CIEL Foundation has nonetheless maintained its support to
of financial information and safeguarding of assets under management. The ERM is not intended to long-term projects, particularly needed in a very challenging social context.
eliminate such risks but can be considered as an adequate protection against material misstatement
or loss which might result from adverse events. The ERM governance structure and identification of
the key risks for the Company and how they are managed are detailed in the Risk Report.
Reporting with Integrity

Since 2017, CIEL has adopted the integrated reporting format to provide additional and transparent
information to its stakeholders. It has been developed following the guidelines of the International
Integrated Reporting Council (“IIRC”). The annual report provides key information - considered material
at Group level - to understand and assess the governance, performance, and strategy of our Group
and its six clusters. More in-depth information can be found in each company’s Annual Report.
The directors affirm their responsibilities in preparing the Annual Report and the Financial Statements
of the Company and its subsidiaries which comply with International Financial Reporting Standards
and the Mauritius Companies Act 2001. The Board also considers that taken as a whole, they are fair,
balanced and understandable and provide the information necessary for shareholders and other
stakeholders to assess CIEL’s position, performance and outlook. Please refer to the Statement of
Directors’ Responsibilities.
Charitable and Political Contributions
The Company Subsidiaries
2021 2020 2021 2020

MUR’000 MUR’000 MUR’000 MUR’000
Charitable* 1,089 1,440 15,060 7,687
Political N/A 2,500 N/A 9,000 COVID-19 Health & Safety Protocol
Includes CSR donations which have been channeled to CIEL Foundation, registered as a special purpose vehicle accredited to
*
The Group aims to act as a responsible employer in providing and maintaining a safe and healthy
receive CSR contributions. work environment for all its employees. The Group aims to be a responsible and caring employer
by providing and maintaining a safe and healthy work environment for all its employees. Health and
safety standards are implemented across all of the Group’s operations, to minimize accidents at work
Sustainability and optimise work efficiency. With the on-going COVID-19 pandemic, strict health protocols remain in
Following the adoption by the Board of CIEL’s sustainability strategy for 2020-2030, its implementation place across our operations as well as flexible working arrangements for our employees. A dedicated
has been initiated across clusters, albeit at various levels, creating a solid momentum to accelerate COVID-19 fund, financed by voluntary contributions from directors and employees is also active in
CIEL’s sustainability leadership. The analysis of the Group’s Environmental and Social performance is supporting employees impacted by COVID-19 socio-economic consequences.
completed annually and enables a disciplined approach to tracking progress towards achieving our set
targets and commitments. More information can be found on our website.
Commitment to Reduce Printing 
CIEL strongly believes in the protection of the environment and as such, encourages its shareholders
Stakeholder Engagement to opt for the opportunity to receive communications electronically. Choosing that option will result
CIEL aims at constantly engaging its internal and external stakeholders on sustainability topics. in a significant reduction in the consumption of paper and impact positively on the environment,
A specific campaign around the theme of Explore. Adapt. Innovate was launched this year and in addition to a significant reduction in costs.
CIEL’s main sustainability initiatives were put forward for cross-fertilisation across operations.
122 123
OUR ESG FOCUS

Audit Relations with Shareholders and Other Key

Stakeholders
External Audit
PricewaterhouseCoopers (“PwC”) is the external auditor of CIEL. PwC was appointed auditors of the
Shareholding Structure/Cascade Holding Structure
Group, in replacement of BDO & Co, at the annual meeting of shareholders held in December 2017 and
has been re-appointed auditors by the shareholders of CIEL at the annual meetings held in December As at 30 June 2021, CIEL had in issue (i) 1,689,901,209 Ordinary Shares (of which 2,456,073 were held as
2018, 2019 and 2020. Significant audit issues are discussed at the Audit & Risk Committee, which are treasury shares) and (ii) 3,008,886,600 Redeemable Restricted A Shares (“RRAS”).
reported under the Key Audit Matters in the auditors’ report. Furthermore, critical policies, judgements
and estimates are brought to the attention of the members and discussed with the auditors during
Audit & Risk Committees, especially when the audited accounts of the Company and Group are tabled Shareholding Structure at 30 June 2021
for consideration.
Based on 1,687,445,136 ordinary shares issued (excluding treasury shares), Based on 3,008,886,600 RRAS
The Audit & Risk Committee regularly meets the auditors in the presence of management since it has Ordinary shares represented 35.93% of the total voting rights of CIEL – RRAS represented 64.07% of
no impact on the objectivity of the meeting. It has considered that if the need arises, they will meet (Ordinary + RRAS). the total voting rights of CIEL
the auditors without management. The fees paid to the auditors for audit and other services for the (Ordinary + RRAS).
financial year are described under Other Statutory Disclosures. The non-audit services provided by the Direct Shareholders holding > 5% of the Ordinary Shares Direct Shareholders holding >
auditors relate mainly to tax computation, compliance and transaction advisory. Hence, the objectivity 5% of RRAS
and independence of the auditors are safeguarded since the teams involved are not the same as the
one providing audit services. 8.01% 6.81% 6.28% 98.66%
Mercoeur Investment Ltd Peugeot Invest Assets Hugnin Frères Ltd Deep River Limited
The Board is satisfied that the members of the Audit & Risk Committee have financial expertise to (P. Arnaud Dalais1) (Peugeot family) (Hugnin family)
fulfil their duties and that they have effectively discharged their responsibilities during the year under
review according to their terms of reference. 5.11% 5.01% 68.78% 1.34%
Di Cirne Holding Ltd Les Amarres Others/Public Others/Public
(Dentressangle family) Investment Ltd
Internal Audit
(Jean-Pierre Dalais2)
The internal auditor reports to the Audit & Risk Committee and maintains an open and constructive
line of communication with management. During the year under review, EY performed the following Note 1: P. Arnaud Dalais also hold shares under his name bringing his total shareholding to Note: Deep River Limited is controlled by
assignment: Risk management review of CIEL | Sustainability review of CIEL. The internal auditor 8.03% of the ordinary shareholding. Deep River Holding Limited (a family holding
Note 2: Jean-Pierre Dalais also hold shares under his name bringing his total shareholding to enterprise).
has unlimited access to the Company’s records and management. A restricted tender exercise 5.47% of the ordinary shareholding.
was performed by the Audit & Risk Committee for the nomination of the internal auditor since
EY’s contract was expiring on 30 June 2021. As a result, EY’s nomination was renewed for an 5.01% 1.34%
6.28%
additional period of three years by the Board.
5.11%
68.78% 98.66%
Mercoeur Peugeot
6.81%
Investment Ltd Invest Assets
DI Cirne Hugnin
Holding Ltd Frères Ltd
8.01%
Les Amarres Others/Public
Investment Ltd
Deep River Others

Limited
Ordinary Shares RRAS

Hold voting rights/Listed on the Stock Exchange of Mauritius/Entitled Hold voting rights/Not listed on
to Dividends the Stock Exchange of Mauritius/
Not Entitled to Dividends
35.93% 64.07%
124 125
OUR ESG FOCUS

Common Directors within the Holding Structure as at 30 June 2021

Mercoeur Peugeot Di Cirne Les Direct Indirect
Hugnin Deep River Deep River Transactions during the Year
Directors Investment Invest Holding Amarres No of Shares No of Shares
Frères Ltd Ltd Holding Ltd
Ltd Assets Ltd Ltd
P. Arnaud Dalais (575,657) 691,411
P. Arnaud Dalais Chairman Chairman Chairman Jean-Pierre Dalais 288,940 Nil
Sébastien Coquard Nominee Guillaume Dalais Nil 691,411
Guillaume Dalais Director Director Director L. J. Jérôme De Chasteauneuf 288,940 Nil
Jean-Pierre Roger Espitalier Noël (76,505) 76,505
Director Director Director
Dalais
M. A. Louis Guimbeau (1,361,365) Nil
Marc Dalais Director Director
Xavier Thiéblin Nil 3,227,000
R. Thierry Dalais Director Director
M. A. Louis
Guimbeau
Director The following Directors hold Shares in Deep River Limited:
Roger Espitalier Direct Indirect
Director Director Director Shareholding as at 30 June 2021
Noël No of Redeemable B Shares No of Redeemable B Shares
Jean-Louis
Nominee M. A. Louis Guimbeau 43,740,000 Nil
Savoye
Xavier Thiéblin Director Xavier Thiéblin Nil 124,946,000
The following Directors hold Shares in Deep River Holding Limited:

Shares in Public Hands
In accordance with the Listing Rules of the SEM, more than 25% of the shareholding of CIEL is in the Direct Indirect
Shareholding as at 30 June 2021
hands of the public. No of Redeemable Shares No of Redeemable Shares
P. Arnaud Dalais - 460,852,228

Directors’ Interests in the Shareholding of CIEL as at 30 June 2021 Jean-Pierre Dalais - 271,817,780
Direct Indirect Marc Dalais 56,336,464 -
Shareholding as at 30 June 2021
No of Ordinary Shares No of Ordinary Shares
R. Thierry Dalais - 155,277,840
P. Arnaud Dalais 401,754 135,178,460 Roger Espitalier Noël 210,000 3,484,200
Sébastien Coquard Nil Nil
Guillaume Dalais 603,860 135,178,449 Shareholders’ Agreements
Jean-Pierre Dalais 1,437,057 90,956,053 Following a private placement which was completed in May 2014, the Company entered into
Marc Dalais 15,315,520 Nil shareholders’ agreements with some of the main strategic investors to provide amongst other things
some usual reserved matters, seats on Board and sub-committees of the Board and tag along rights.
R. Thierry Dalais Nil 38,819,460
Pierre Danon Nil 1,049,138
L. J. Jérôme De Chasteauneuf 951,784 11,064,698
Roger Espitalier Noël Nil 2,243,914
M. A. Louis Guimbeau 10,000,000 Nil
Marc Ladreit De Lacharrière Nil 50,263,138
J. Harold Mayer 3,517,694 Nil
Catherine McIlraith Nil Nil
Jean-Louis Savoye Nil Nil
Xavier Thiéblin Nil 36,963,500
Alternate Director
Jacques Toupas Nil Nil
126 127
OUR ESG FOCUS

Related Parties’ Agreements CIEL’s key stakeholders and the way it has responded to their expectations are described below:
IEL holds an agreement with CIEL Corporate Services Ltd (“CCS”) (CIEL Head Office) for the provision
C
of strategic support & Group strategy harmonisation, legal, company secretarial and payroll services
to the companies of the Group. Amount paid to CCS for the financial year ended 30 June 2021 -
MUR 51.8M. The Board considers the annual meeting as an important corporate event
C
IEL holds a treasury agreement with Azur Financial Services Ltd (a subsidiary of CIEL) for the provision and shareholders are encouraged to attend to express their views and
of cash management services, treasury advisory services and foreign exchange & money market receive feedback from Board members directly on the Group’s financial
brokerage services to the Group. CIEL pays a fixed monthly fee for the cash management together performance and strategic directions. In case a shareholder cannot attend,
with a variable fee, based on the volume of intercompany transactions processed by Azur Financial votes can still be cast on all resolutions through completion of the proxy
Services Ltd for the Group. Amount paid to Azur Financial Services Ltd for the financial year ended form/postal vote. Notices of annual meetings are sent to the shareholders
30 June 2021 – MUR 0.8M. within the prescribed delay imposed by law and are also published in
CIEL holds an agreement with Deep River Ltd (“DRL”) for the provision of strategic support & the press.
Group strategy. Amount paid to CCS for the financial year ended 30 June 2021 - MUR 710k.
Shareholders The annual integrated report, which includes the notice of annual meeting,
Dividend may also be viewed on the Company’s website.
A dividend of MUR 0.05 (five cents) per ordinary has been declared by the Board on 29 September 2021.
The Board has decided that henceforth the dividend would be declared once annually, i.e, in June. The Company also publishes, on a quarterly basis, a financial review
Policy - A minimum of 75% of net profits after tax of the Company, depending on the cash flow and document together with its unaudited abridged financial statements.
financial needs. This document provides a detailed review on the clusters of the Group
to facilitate the understanding of the financial results. Additionally,
CIEL strives to promote dialogue through analysts’ meetings which are
Key Stakeholders’ Communication conducted twice yearly with a presentation of the financial statements
The Board of CIEL is committed to promoting an open and transparent communication with its being made by the executives of the Group.
stakeholders to ensure that they receive the correct and adequate information while upholding
trustworthy relationships with them. It tries to maintain an ongoing dialogue with its shareholders
by keeping them abreast of all material business developments that influence the Group in a
transparent and timely manner through various communication channels. In addition to official Communication with financial institutions and the financial community in
press announcements and occasional press conferences, CIEL’s website provides for an adapted and Financial and general usually takes place through investor meetings. The main recurring
comprehensive self-service interface. CIEL also communicates via different social media platforms. Strategic Partners
topic of discussion is financial performance. The presentation made to
CIEL understands the importance of a transparent communication to its stakeholders and as such, financial analysts is also posted on CIEL’s website.
has developed a website which provides a good presentation of its activities, leadership, governance,
initiatives etc.
We invite you to visit CIEL’s website: www.cielgroup.com
CIEL’s business activities are conditional on regulatory requirements

Government
and Public meaning that regulators have a high level of influence and interest in the
Authorities Company’s operations. The Company ensures at all times that it complies
with regulatory provisions and guidelines in the conduct of its activities.
CIEL recognises that its workforce is key to its performance and

development. It has over the years and since its beginnings in 1912,
developed a unique way of doing business. Based on international ethical
standards and a strong value system, the Group has grown to become a
Mauritian-based international investment Group. CIEL believe ethics start
Employees of
the Group
at the top, with its Board of Directors, senior management and extend to all its
employees, business partners and other stakeholders through 3 core values
which are: • Excellence at core • People at heart • Ethical and Sustainable.
CIEL’s Code of Ethics highlights key areas which it believes that are crucial in
doing business fairly and ethically: • Business Integrity • Workplace Culture
• Data Privacy • Reputation & Goodwill • Environmental & Social Values.
128 129
OUR ESG FOCUS

Shareholders’ Information and Calendar of Events This report has been approved by the Board upon recommendation of the Corporate Governance,
Ethics, Nomination & Remuneration Committee.
Event Month
Financial year end 30 June
Annual meeting of shareholders December
Declaration/payment of dividend (conditional to approval by the Board) P. ARNAUD DALAIS CATHERINE MCILRAITH
June/July
Chairman of the Board Director
Publication of first quarter results November
Publication of half-yearly results February
Publication of third quarter results May
Publication of full year results September

CLOTHILDE DE COMARMOND, ACIS
Group Company Secretary
For and on behalf of CIEL Corporate Services Ltd
During the financial year, shareholders were convened at the annual meeting held on 18 December 2020.
The notices, including the agenda, were published in the press, in line with statutory requirements, 29 September 2021.
and posted on CIEL’s website. The resolutions submitted for the approval of the shareholders at the
meeting were approved.
Share Price Information
5.5
4.5
3.5
2.5
MUR
2
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FY21 FY20
CIEL - CIEL Limited SEM10 SEMDEX
130 131
OUR ESG FOCUS
Other Statutory Disclosures

(Section 221 of the Mauritius Companies Act 2001)
Principal Activity and History Directors of Subsidiaries

CIEL Limited, formerly known as Deep River Investment Limited, incorporated on 31 August 1948, is a Directors of subsidiaries as at 30 June 2021 are listed in Annexure A.
public company listed on the Official Market of the SEM since 4 February 2014. On 24 January 2014,
CIEL Investment Limited was amalgamated with and into Deep River Investment Limited (“DRI”). DRI,
as surviving company post Amalgamation, was renamed CIEL Limited. CIEL is also registered as a Retirement Benefit Obligations
Reporting Issuer with the FSC since the promulgation of the Securities Act 2005. CIEL is an investment The details of the total amount of provisions booked or otherwise recognised by the Company are
holding company, with investments in six distinct business sectors: provided in the financial statements.
CIEL Agro - CIEL Finance - CIEL Healthcare - CIEL Hotels & Resorts - CIEL Properties - CIEL Textile
Directors’ Remuneration and Benefits
Directors’ Service Contracts
The Company Subsidiaries
The executive directors are remunerated by CIEL Corporate Services Ltd, a subsidiary of CIEL, with no
2021 2020 2021 2020
expiry terms to their terms and conditions of their employment. The persons who held office as
Directors of CIEL as at 30 June 2021 are disclosed in the corporate governance report. MUR’000 MUR’000 MUR’000 MUR’000
Directors of the Company
Shareholding Profile Executive Directors - - 31,975 45,363
Ownership by Size of Shareholding Ordinary Shares Non-Executive Directors 6,699* 10,126 2,266 69,445
Shareholder Number Percentage
Directors of Subsidiaries
Count of Shares Held
Executive Directors - - 174,127 277,350
1 - 500 1013 189,913 0.0113
Non-Executive Directors - - 9,857 15,175
501 - 1,000 300 239,586 0.0142
* Net of payment to the CIEL Covid Fund
1,001 - 5,000 659 1,707,715 0.1012
5,001 - 10,000 362 2,688,380 0.1593

Audit Fees as at 30 June 2021
10,001 - 50,000 713 17,577,252 1.0416
The fees paid to the auditors for audit and other services were as follows:
50,001 - 100,000 247 17,849,550 1.0578
100,001 - 250,000 311 49,585,496 2.9385 The Company Subsidiaries
250,001 - 500,000 120 42,836,852 2.5386 2021 2020 2021 2020
500,001 and above 232 1,554,770,392 92.1375 MUR’000 MUR’000 MUR’000 MUR’000
Total 3,957 1,687,445,136 100 Local External Auditors:
Audit Fees - PwC 1,665 808 18,544 15,840

Ownership by category of shareholding Ordinary Shares
Audit Fees 230 - 3,375 2,599
Shareholder Number Percentage
Category Other Fees 86 298 2,325 2,264
Count of Shares Held
Foreign External Auditors:
Individuals 3,519 555,805,463 32.9377
Audit Fees - - 16,776 13,627
Insurance and Assurance companies 17 68,328,316 4.0492
Other Fees - - 936 1,647
Investment and Trust companies 90 393,100,310 23.2956
Pensions and Provident funds 59 160,814,135 9.5300 The fees in respect of other services pertain mainly to review of quarterly financial statements,
tax computation & compliance and group accounts consolidation.
Other Corporate Bodies 272 509,396,912 30.1875
Total 3,957 1,687,445,136 100
The above number of shareholders is indicative due to consolidation of multi portfolios for
reporting purposes.
The total number of active shareholders as at 30 June 2021 was 4037.
132 133
OUR ESG FOCUS
Other Statutory Disclosures Statement of Compliance

(Section 221 of the Mauritius Companies Act 2001) (Section 75 (3) of the Financial Reporting Act 2004)
Related Party Transactions Name of Public Interest Entity (“PIE”): CIEL Limited (“CIEL”/”the Company”)
Transactions with related parties are disclosed in detail in the financial statements. Reporting Period: 30 June 2021
On behalf of the Board of Directors of CIEL, we confirm, to the best of our knowledge, that throughout
Contract of Significance the financial year ended 30 June 2021 and to the best of the Board’s knowledge, the Company
has partially complied with the obligations of the National Code of Corporate Governance for
There were no contracts of significance subsisting during or at the end of the year in which a Director Mauritius (2016).
of the Company is or was materially interested, either directly or indirectly.
The area of non-compliance, whose reasons are included in the Corporate Governance Report, is as
Share Registry & Transfer Office follows, namely:
CIEL’s Share Registry and Transfer Office is administered by MCB Registry & Securities Ltd. If you Principle 4 – Remuneration of Directors
have any queries regarding your shares, wish to change your name or address, or have questions
about lost certificates, share transfers or dividends, you may contact either your Investment Dealer
or the Share Registry and Transfer Office, whose contact details are as follows: MCB Registry &
Securities Ltd - Ground Floor, Raymond Lamusse Building, 9/11 Sir William Newton Street, Port Louis
- Tel: +230 202 5640
On Behalf of the Board P. ARNAUD DALAIS M. A. LOUIS GUIMBEAU

29 September 2021.
P. ARNAUD DALAIS M. A. LOUIS GUIMBEAU

29 September 2021.
134 135
OUR ESG FOCUS
Statement of Directors’ Responsibilities Certificate

in respect of the preparation of Financial Statements from the Company Secretary
The directors are responsible for preparing the Annual Report and the Financial Statements in In our capacity as Company Secretary of CIEL Limited (“the Company’’), we hereby confirm
accordance with applicable laws and regulations. that, to the best of our knowledge and belief, the Company has lodged with the Registrar of
Companies as at 30 June 2021, all such returns as are required for a company in terms of the
Company law requires the Directors to prepare Financial Statements in accordance with International Mauritius Companies Act 2001, and that such returns are true, correct and up to date.
Financial Reporting Standards (“IFRS”) for each financial year, which present fairly the financial position,
financial performance and cash flows of the Group and the Company.
The directors confirm that, in preparing the Financial Statements, they have to:
• Select suitable accounting policies and then apply them consistently.
• Make judgements and accounting estimates that are reasonable and prudent. CLOTHILDE DE COMARMOND, ACIS
Group Company Secretary
• State that IFRS have been adhered to, subject to any material departures being disclosed and For and on behalf of CIEL Corporate Services Ltd
explained in the Financial Statements.
29 September 2021.
• Prepare the Financial Statements on the going concern basis, unless it is inappropriate to presume
that the Group and the Company will continue in business.
• Ensure application of the Code of Corporate Governance (“Code”) and provide reasons in case of
non-application with the Code.
The directors are responsible for keeping proper accounting records, which disclose with reasonable
accuracy at any time the financial position of the Group and Company to enable them to ensure that the
Financial Statements comply with the Mauritius Companies Act 2001, IFRS and the Financial Reporting
Act 2004.
They are also responsible for safeguarding the assets of the Company and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
The directors hereby confirm that they have complied with the above requirements.
Approved by the Board of directors on 29 September 2021.
On behalf of the Board,

136 137
OUR ESG FOCUS
Corporate Information
Company Secretary Website
CIEL Corporate Services Ltd www.cielgroup.com

5th Floor, Ebène Skies
Rue de l’Institut, Ebène
Republic of Mauritius Business Registration Number
Tel: +230 404 2200
Fax: + 230 404 2201 C06000717
Share Registry & Transfer Office External Auditor
If you are a shareholder and have queries PricewaterhouseCoopers Ltd

regarding your account, wish to change your 18 Cybercity, Ebène, Réduit 72201
name and address, or have questions about Republic of Mauritius
lost certificates, share transfers or dividends,
please contact our Registrar & Transfer Office:
MCB Registry & Securities Ltd
2nd Floor, MCB Centre
9-11 Sir William Newton Street, Port Louis
Republic of Mauritius
Tel: +230 202 5640
Fax: +230 208 1167
Registered Office Internal Auditor
5th Floor, Ebène Skies Ernst & Young

Rue de l’Institut, Ebène 9th Floor, NeXTeracom Tower I, Cybercity
Republic of Mauritius Ebène, Republic of Mauritius
Tel: +230 404 2200
Fax: +230 404 2201
Main Bankers Legal Advisers
The Mauritius Commercial Bank Ltd Me. Thierry Koenig SA – ENSafrica (Mauritius)
Bank One Limited Me. Maxime Sauzier SC– ENSafrica (Mauritius)
Notary
Etude Montocchio – d’Hotman
138 139
OUR
APPROACH
TO RISK
MANAGEMENT
“
Our risk identification processes seek to identify
risks from both a top-down strategic approach
and a bottom-up operational perspective.
- P. Arnaud Dalais
OUR APPROACH TO RISK MANAGEMENT
Monitoring Risk
Managing our Risk throughout the Group
The Group recognises the importance of identifying and managing financial and non-financial risks At CIEL, each cluster is autonomous. The cluster risk champions may opt to either use the risk
faced by the business. In response to this, it has developed a rigorous risk management framework management templates, risk ranking protocols and methodology provided by the Group Risk Officer
designed to identify and assess the likelihood and consequences of risks, and to manage the actions and adjust same to their business context, or alternatively, establish their own methodology.
necessary to mitigate their impact. Our risk identification processes seek to identify risks from
both a top-down strategic approach and a bottom-up operational perspective. The Board has the CIEL selects and consolidates risks identified at cluster level, as well as supplements these with
overall responsibility for risk management, setting of risk appetite as well as the implementation its own specific risks to arrive at the group level risk universe as documented in the Group risk register.
of the risk management policy. The framework enables the business units to take advantage of
attractive opportunities within defined risk limits.
The Group risk register is maintained by the Group Risk Officer and is the core of the risk management
process. It contains an overall assessment of the risks faced by the Group together with the controls
established to reduce those risks to an acceptable level. The Group risk register is based on detailed risk
Audit & Risk Commitee
registers maintained by each cluster, which are reviewed and monitored through their own Audit and
Risk Committee (“ARC”) that meets at least quarterly.
CIEL’s ARC meets at least four times a year, with the objective of encouraging best risk management
practices across the Group and a culture of regulatory compliance and ethical behaviour. Enterprise Risk Management Risk Appetite
(“ERM”) Policy & Framework Approved By Board
The governance structure and associated lines of communication at CIEL are illustrated below:
Board Of CIEL
Governance, Risk & Compliance Committee
CIEL Head Quarterly Basis
Office
Audit & Risk Committee Internal Audit CIEL Risk Tools & ERM Policy & Risk
Register Templates Framework Appetite
Governance, Risk &

Compliance Committee
Group Risk Officer

Quarterly Basis
Group Risk Officer
Cluster ARC
CIEL Risk Tools & ERM Policy & Risk
Register (Draft) Templates Framework Appetite
Risk Risk Risk Risk Risk Risk Clusters

Champion Champion Champion Champion Champion Champion
(Finance) (Healthcare) (Hotels & Resorts) (Textile) (Properties) (Agro)
Textile
Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly

Finance
Basis Basis Basis Basis Basis Basis
Healthcare
Risk Risk Risk Risk Risk Risk
Owners Owners Owners Owners Owners Owners
Properties
Hotels &
Resorts Risk Risk Risk Risk Risk Risk
Champion Champion Champion Champion Champion Champion
Agro
142 143
Key Responsibilities Our Current Risk Profile,

of Each Stakeholder and Forward-Looking statement
Our robust risk management framework helped us weather the unprecedented challenges
BOARD experienced as a result of the COVID-19 pandemic. CIEL reported the pandemic as a new principal risk
last year, and it remains an elevated risk. The pandemic has had a more profound impact on economies
The Board has the ultimate responsibility for risk management and is assisted and people than originally expected. Uncertainty remains as to whether the recent lockdowns and
in this task by the ARC, the Governance, Risk and Compliance Committee vaccination programmes are sufficient to bring the pandemic under control and allow normal life
and the Group Risk Officer. to return and, if so, when. The various impacts of the pandemic are reflected across many of the
principal risks and include our mitigation strategies for them.
Climate change and environmental disasters have also become a widely acknowledged global
1. Approve the ERM policy, framework, 1. Review and discuss the CIEL risk emergency and a key priority for governments, businesses, and citizens around the world. While risks
and risk appetite statement. register before finalising and relating to climate change and sustainability have previously been integral parts of several of our
submitting to the ARC. principal risks, we have now included environmental disasters and climate change as a separate risk.
2. Ensure that key risks are reported in
line with the established ERM policy 2. Validate the ERM policy and The financial sector has also been through a challenging year due to increased macroeconomic
Compliance Committee
and framework. framework, and risk appetite uncertainty driven by the pandemic, thereby increasing its risk profile. In Mauritius, the EU and
Governance, Risk and

statement before submitting same UK Blacklisting has negatively affected global business trade.
3. Ensure that the communication to the ARC for approval.
between the Board and the As the pandemic evolves, it will continue to threaten many sectors but has also presented opportunities
risk management function is 3. Ensure that key risks are reported, for others, namely the Healthcare sector.
clearly established. and risk heat maps are produced.
ARC
CIEL continues to enforce sanitary protocols and encourages a remote and work from home policy.
4. Obtain reasonable assurance 4. Ensure that risk champions fulfil With this new working arrangement and increased reliance on technology, we have had to increase
that the risk management their duties. our security and regulation protocol to fend off cyber security attacks.
system is effective, and the
risk management department Turning Crisis into Opportunity: COVID-19 as Accelerator to our Digital Transformation Journey
fulfils its duties.
5. Review the overall system of

risk management. The need to digitally transform has been on the
agenda for years. But COVID-19 has certainly been the
catalyst to finally push businesses to wholly embrace
new digital technologies. CIEL as a group is embracing
this digital journey throughout its clusters. The key steps
identified to implement the digital journey are as follows:
i) Prioritise investment in digital technologies –

1. Share guidance and templates with 1. Perform risk assessments of their The Group believes having the right technology will
cluster risk champions. respective cluster. build the foundation for digital transformation and
are currently undertaking strategies to accelerate
2. Share approved CIEL ERM policy 2. Continuously monitor the risks of this process.
and framework with cluster their respective cluster.
ii) Build and train skilled resources – Technologies are
Cluster Risk Champions
risk champions.
3. Ensure that controls are only one piece of the equation, and the group
Group Risk Officer
3. Consolidate risks from the documented in the risk register to considers that having the right skills and resources
cluster’s risk registers and prepare mitigate their corresponding risks. in place will successfully drive this transformation
CIEL Group risk register. through a focussed talent management framework.
4. Nurture a culture of
iii) Consolidate data – Data drives the Group’s
4. Present the draft CIEL risk register risk management in their
decision-making process and to support informed
to the Governance, Risk and respective cluster.
and timeous decisions, it is necessary to have a good
Compliance Committee and
5. Update and submit their risk quality data warehouse. CIEL as a group is working
the final one to the ARC.
registers and risk profile to the toward having an integrated data warehouse.
5. Assist the Board and ARC in Group Risk Officer. iv) Remaining agile – To manage through recovery and
defining the strategy statement to seize opportunities, the Group needs to be lean
which clarifies the risk appetite, and agile. These principles underpin all our endeavours
risk ownership and strategies to from building the right skills to choosing the right
tackle risks. technologies, and most importantly, enabling the right
culture and leadership to drive digital transformation
initiatives from the white board to the real world.
144 145
Principal Risks Explained

Our principal risks profile evolves as we move through the economic cycle, and commentary on
how the main risks have changed are shown below.
Risks Risk Level Capital Affected
Operational Risks 5 High Financial capital Social & relationship capital
Financial Risks 3 Medium Manufactured capital Intellectual capital
Strategic Risks 1
Low Human capital Natural capital
Key
Risk increasing Risk Decreasing No Risk Mouvement
Principal Risk Clusters Affected Risk Appetite and Risk Score Capitals Affected Description & Risk Movement Key Controls and Mitigating Factors
1. Environmental Climate change has the potential to change the world Like anyotherbusiness, climate change hasthe potential
Disasters and 4.2 in which we live and operate, dramatically. Tackling to impact ours greatly. For example, adverse weather
Climate Change climate change, by taking measures to limit its impact events or natural disasters could negatively affect
to manageable levels, has become a key priority for economies and disrupt our business day-to-day.
governments, businesses, and citizens around the world. Our commitment to improving energy performance
Even if manageable, the effect of climate change will and reducing carbon emissions in our Textile segment
be quite profound, and these measures will themselves is intended to reduce our impact on the environment
have a significant impact on economies and the choices and should also deliver significant long-term cost
people make. Climate change has, therefore, moved from savings. Our property cluster is also embarking in eco-
an emerging risk to a principal risk for the business. friendly development projects with the successful
Ecosystem management not only offers an opportunity launch of the Agri-Hub project.
to strengthen natural infrastructure and human resilience
against hazard impacts, but also generates a range of other
social, economic, and environmental benefits for multiple
stakeholders, which in turn feed back into reduced risk.
2. Global The global economic crisis brought about by the Despite the ongoing impact of the pandemic,
Recession 4 COVID-19 pandemic through lockdowns, border closures, the Group returned to profitability supported
the collapse of trade, travel bans, and financial market by certain sectors managing the effects of the
volatility, was common across countries and regions. pandemic well. The vaccine roll-out programmes in
The projected recovery will be marked by the divergent our major markets and government support mean
circumstances of each country and the idiosyncrasies of that we expect the economy to be supportive in
its policy response. Success in the post-pandemic era will our business growth and as such have reduced the
reflect a constellation of policies and capacities peculiar likelihood of an adverse global economic event to
to each country, including national vaccination rates, ‘medium’. Nevertheless, we remain cognisant of
integration into major economic blocks, the ability to market dynamics and uncertainties to ensure that the
provide fiscal and monetary stimulus, and the restoration Group is positioned to respond to changes in these
of confidence in the private sector. ever-changing global economic conditions.
146 147

3. COVID-19 The continuing global COVID-19 pandemic may The safety and wellbeing of our employees and
3.8 have a significant and prolonged impact on global customers has been and continues to be our
economic conditions. The ongoing disruptions can impact overriding priority. Our Executive Committee
our supply chains and supplier base, specifically in respect is monitoring events closely with regular Board
of business closures, labour shortage, raw material supply oversight, evaluating the impacts and designing
and cost inflation. An increase in employee absences appropriate response strategies. Our teams continue
can further adversely impact our operations. Failure to to work tirelessly to implement specific actions to
adapt to changes brought about by this, and any future minimise disruption faced by our customers in these
pandemics in our markets and the environment in which challenging times. We have developed practices
we operate, may adversely affect our competitiveness within our factories, business units, as well as our head
and financial results. offices. They vary between sanitary protocols and
During the year, governments around the world working from home, and tactics to help people adapt
introduced emergency public measures, including travel to the new ways of working, all the while ensuring we
bans, quarantines, and public lockdowns. These measures comply with local government regulations.
have, to varying degrees, been relaxed then reintroduced
as ‘waves’ of COVID-19 continued, with new variants
adding to the speed of transmission. Vaccines have been
rolled out with significant coverage in our core markets,
however uncertainty remains as to whether recent
lockdowns and the vaccination programmes are sufficient
to bring the pandemic under control and allow normal
life to return and, if so, when. It is also unclear how the
pandemic will have changed the environment in which we
operate.
4. Cyber Security A cyber-attack or serious uncured failure in our systems Stringent policies surrounding security, user access,
3.6 could result in us being unable to deliver services to change control and the ability to download and
our customers and/or the loss of data. We are heavily install software have been put in place. Testing
dependent on technology for the smooth running of of cyber security, including system penetration
our business. As a result, we could suffer reputational loss, testing and internal phishing training exercises,
revenue loss and financial penalties. This is the most were undertaken. Use of antivirus and malware
significant factor in our business continuity planning. software, firewalls, email scanning and internet
monitoring is an integral part of our security plan.
Deliberate focus on development of the IT strategy
in respect of the Group’s cloud technology strategy is
ongoing. Good progress has been made in enhancing
the Group’s cyber security profile, with a significant
and ongoing investment in resources and tooling.
Nevertheless, cyber security remains a continually
evolving area and a priority for the Group.In relation
to business continuity, our plans have been subject to
continued review and update during the year and our
disaster recovery plans are tested regularly. We will
review these plans over the coming year to ensure
that we are up to date with new emerging cyber risks.
5. Data Security Failure to comply with legal or regulatory requirements We put our customers’ and employees’ personal data
and Data Privacy 3.6 relating to data security and data privacy in our business at the heart of all decisions we make in relation to
activities results in reputational damage, fines, or other data security. Our data privacy and protection policies
adverse consequences. This includes criminal penalties clearly set out how we can protect and appropriately
and consequential litigation which may result in an adverse restrict customer, supplier and employee data. There is
impact on our financial performance or unfavourable regular reporting on progress and results of the
effects on our ability to do business. As an organisation security and privacy programmes to the appropriate
we hold a large amount of personal data on customers committees. We recognise the importance of training
and employees. In preparation of an increase in potential and communication to help prevent data security and
threats, we continue to invest in our security and privacy privacy-related incidents and have regular induction,
programmes. The move to working from home during the awareness and refresher courses for our employees.
pandemic has presented its own security challenges and
response requirements.
148 149

6. People Failure to attract, retain and develop the required capability Provide well-structured and competitive reward
3.6 and to embed our values in our culture results in an impact and benefit packages that ensure our ability to
on the delivery of our purpose and business performance. attract and retain the employees we need. Our talent
Market competition for key leadership and specialist planning and people development processes are
talent remains strong. The year has also presented established across the Group. We have clear potential
significant people challenges in supporting vulnerable and performance criteria and talent principles,
colleagues, recruiting, and training huge numbers of new underpinned by our employer value proposition
permanent and temporary colleagues, supporting the and strategy. Our established Group Diversity and
shift to homeworking for most office-based employees, Inclusion strategy ensures that everyone is welcome
reinforcing our culture and driving our diversity and and that we provide all our colleagues with equal
inclusion programmes harder. At a leadership level, opportunities for growth and development. This is
succession planning is required to ensure the Group embedded in our values, and we are committed to
can continue to inspire the right culture, leadership and building an inclusive workplace.
behaviours and meet its strategic objectives.
7. Competition and The already competitive market could become even more Our competitive position continues to improve,
Markets 3 competitive with new entrants, and we could suffer and we have taken advantages of our position
increased competition both locally and internationally to grow and consolidate our position. Our Board
impacting our market share. Failure to deliver an effective, develops and regularly challenges the strategic
coherent, and consistent strategy in response to direction of our business to enhance our ability to
our competitors and changes in market conditions could remain competitive on price, range and service.
result in a loss of market share and profitability. We continue This includes developing our online channels and
to face the challenges of a changing competitive landscape multiple formats to allow us to compete in different
and price pressures across our markets. Our strategies markets. Our Executive Committee and operational
are well-developed, and we review them regularly to management regularly review markets, trading
remain competitive and are informed by competitor and opportunities, competitor strategy and activity.
market activity data. We carry out market scanning and competitor
analysis to refine our customer proposition.
Internal control
The key elements of the Group’s internal control framework are monitored throughout the year and the ARC has
conducted a review of the effectiveness of the Group’s risk management and internal control systems on behalf of
the Board. To support the Board’s annual assessment, the Group Risk Officer prepared a report on the Group’s principal
risks and internal controls. This describes the risk management systems and key internal controls, as well as the work
conducted in the year to improve the risk and control environment, including the level of assurance undertaken.
The internal control framework is intended to effectively manage rather than eliminate the risk of failure to achieve our
business objectives. It can only provide reasonable, but not absolute, assurance against the risk of material misstatement
or financial loss.
150 151
OUR
FINANCIAL
STATEMENTS
“
Our IFRS-based and audited financial statements
give an in-depth look into the business.
CIEL LIMITED INTEGRATED REPORT 2021
INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS OF CIEL LIMITED TO THE SHAREHOLDERS OF CIEL LIMITED (CONTINUED)
REPORT ON THE AUDIT OF THE CONSOLIDATED AND REPORT ON THE AUDIT OF THE CONSOLIDATED AND
SEPARATE FINANCIAL STATEMENTS SEPARATE FINANCIAL STATEMENTS (CONTINUED)
Our Opinion Key Audit Matters (Continued)
In our opinion, the consolidated and separate financial statements give a true and fair view of the financial position
of CIEL Limited (the “Company”) and its subsidiaries (together the “Group”) and of the Company standing alone as Key audit matter How our audit addressed the key audit matter
at 30 June 2021, and of their financial performance and their cash flows for the year then ended in accordance with
International Financial Reporting Standards and in compliance with the Mauritian Companies Act 2001. Company
What we have audited Valuation of investments in subsidiaries, joint ventures,
associates and other financial assets
CIEL Limited’s consolidated and separate financial statements set out on pages 162 to 171 comprise:
• the consolidated and separate statements of financial position as at 30 June 2021; The Company carries its investments in subsidiaries, For the more judgmental valuations, which may depend
joint ventures, associates and other financial assets on unobservable inputs, we evaluated the assumptions,
• the consolidated and separate statements of profit or loss and other comprehensive income for the year then ended; at fair value in its separate financial statements. methodologies and models used by the Company.
As disclosed in notes 12,13,14 and 15 of the financial
• the consolidated and separate statements of changes in equity for the year then ended; statements, the Directors apply different approaches We performed an independent valuation of a sample
to estimating the fair values of the investments. of positions, in order to assess whether management’s
• the consolidated and separate statements of cash flows for the year then ended; and valuations were within a reasonable range of outcomes
The valuation of the Company’s investments held in the context of the inherent uncertainties disclosed in
• the notes to the financial statements, which include significant accounting policies and other explanatory information. at fair value was a key area of audit focus owing to the financial statements.
the magnitude, the estimation uncertainties in the
Basis for Opinion We also involved our valuation experts to review the
assumptions, and the degree of judgment required
from the Directors, particularly in the context of appropriateness of the methodologies used in the
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
economic uncertainty. context of the relevant investment securities held.
standards are further described in the “Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial
Statements” section of our report.
Group
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Accounting for redeemable convertible bonds to
Independence Mauritius Investment Corporation
We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the International Ethics Standards Board for Accountants During the financial year 2021, the Group issued We obtained and reviewed the terms of the subscription
(the “IESBA Code”). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code. redeemable convertible bonds to the Mauritius agreement with the MIC.
Investment Corporation (‘MIC’), a wholly owned
subsidiary of the Bank of Mauritius With the assistance of our internal legal specialists,
Key Audit Matters
we obtained and reviewed the legal opinion of the
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the As disclosed in note 27 of the financial statements, Directors’ legal experts.
consolidated and separate financial statements of the current period. These matters were addressed in the context of the directors have opted to account for the bonds as
equity instruments. We obtained and reviewed the accounting technical
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
advice provided by the independent expert engaged by
opinion on these matters.
Based on the interpretation of some clauses in the the Directors and discussed with our internal accounting
agreements with MIC, the Directors had a choice technical specialists.
to account for the redeemable bonds as either
equity instruments or partly debt (liability) and We assessed whether appropriate disclosures were
equity instruments. made by the Directors in the financial statements.
The accounting of the MIC funding was a key area of audit

focus due to the legal complexity of the agreement
and the significant impact the policy choice has on the
Group statement of financial position.
154 155

TO THE SHAREHOLDERS OF CIEL LIMITED (CONTINUED) TO THE SHAREHOLDERS OF CIEL LIMITED (CONTINUED)
SEPARATE FINANCIAL STATEMENTS (CONTINUED) SEPARATE FINANCIAL STATEMENTS (CONTINUED)
Key Audit Matters (Continued) Key Audit Matters (Continued)
Key audit matter How our audit addressed the key audit matter Key audit matter How our audit addressed the key audit matter
Group Group
Determination of the expected credit loss on loans Impairment of goodwill
and advances carried at amortised cost
As disclosed in note 11 of the financial statements, As part of our planning procedures, we obtained an
The Group applied IFRS 9 ‘Financial Instruments’ With the assistance of our internal experts: the Group has goodwill amounting to MUR 1.3Bn understanding of the key controls relating to the
which requires the recognition of Expected (2020: MUR 1.3Bn) for which it has concluded impairment review process. We also obtained the
Credit Losses (‘ECL’) on its financial instruments. (a) We obtained an understanding and tested the relevant that no impairment exists as of 30 June 2021 Directors’ assessment of the recoverable amounts of the
As explained in note 45 of the financial statements, controls relating to the approval of credit facilities, (2020: impairment of MUR 128M). different CGUs.
the ECL impairment model requires the use of subsequent monitoring and remediation of exposures
complex models and significant assumptions about and key system reconciliations. The Directors assessed the recoverable amount of We assessed the validity of the assumptions used in the
future economic conditions and credit behaviour, the goodwill using a discounted cash flow model cash flow models by comparing these assumptions to our
(b) We critically assessed the methodology applied to
particularly for the Group’s banking segment. to determine the recoverable amount of the cash independently derived expectations, independent external
determine the PD, LGD and EAD used to compute
generating unit (CGU) to which the goodwill relates. market data, other analyst forecasts and competitor
the ECL against the prerequisites of IFRS 9 and the
The Directors exercised significant judgment in trading updates for indicators of contradictory evidence
Bank’s internal policies. This requires the use of a number of key assumptions
respect of: to challenge these forecasts. For the Hotels & Resorts
(c) We challenged the appropriateness of the parameters and judgements, including the estimated future cash segment, this included specific consideration of the
(a) Accounting interpretations, modelling and significant assumptions, including forward- flows, long-term growth rates, profitability levels expected rate of recovery of passenger numbers in
assumptions and data used to build the ECL looking information, incorporated into the ECL model, and discount rates applied. the context of the current travel restrictions and the
model. by benchmarking these against independent external expectations of how long they may remain in place.
This was an area of focus considering the significance
(b) Allocation of assets to stages 1, 2 or 3 using sources, with a particular focus on the impact
of the amounts involved and the level of judgement In order to address management bias in the forecasted cash
criteria in accordance with IFRS 9. of Covid-19.
and estimation required from the Directors. flows, the budgeted figures of the CGUs that were used in
(c) Identification of instruments that have (d) We validated a sample of critical data elements used the previous year were back tested to the actual experience.
experienced a significant increase in credit risk. as input to determine the PD, LGD and EAD to relevant We also considered reasonably possible changes in key
source documentation. assumptions, including making allowance for the near term
(d) Assumptions used in the ECL model to estimate weaker trading from the impact of Covid-19, specifically for
the probability of default (“PD”), exposure at (e) We performed risk-based substantive testing of
the ECL model by independently re-building certain the Hotels & Resorts segment. Terminal growth rates
default (“EAD”) and loss given default (“LGD”). have been assessed for reasonableness based on market
assumptions and comparing the ECL output of the Bank
(e) Incorporation of forward- looking information to our own calculated expectations as determined expected long-term growth rates.
reflecting potential future economic events in by applying the Bank’s model methodology to the
the ECL model. In order to determine the reasonableness of the discount
underlying data.
rates, the rates used in the cash flow models (on a
(f) We evaluated the Bank’s staging assessment, in light sample basis) were compared to a range of discount rates
of the moratoriums granted and challenged the independently calculated by us, with the support of our
judgements used to determine whether borrowers will internal valuation experts, based on the markets in which
only face temporary cash flow issues or more chronic the CGU operate and taking into account the nature of
problems which might cause them to default even after the CGUs.
the payment deferral period is over.
We also verified the mathematical accuracy of the models.
(g) We assessed the adequacy of the financial statement
disclosures against the requirements of IFRS 9 to We assessed whether appropriate disclosures were made
ensure that these appropriately reflect the Bank’s credit by the Directors in the financial statements.
risk exposures.
156 157

Key Audit Matters (Continued) Key Audit Matters (Continued)
Key audit matter How our audit addressed the key audit matter Key audit matter How our audit addressed the key audit matter
Group Group
Valuation of land and buildings (See note 9(a) of the Basis of preparation – Impact of Covid-19 on the
financial statements) Hotels & Resorts segment (See note 2.1 of the
financial statements)
As at 30 June 2021, the Group had land and buildings We evaluated the appropriateness of the design and
amounting to MUR 20Bn (2020: MUR 21Bn) included implementation of the Group’s key controls to address the The Directors of SUN Limited have evaluated the We obtained the segment’s approved forecast cash flows
as part of its property, plant and equipment in the risk over the valuation of land and buildings. inherent risks including the impact of Covid-19 to by the board of SUN Limited, covering the period up to
consolidated statement of financial position of the Hotels & Resorts segment business model and 30 June 2022 (‘the going concern period’).
which MUR 14Bn (2020: MUR 15Bn) related to the We assessed the competence, experience, independence how these risks might affect the segment’s financial
Hotels & Resorts segment. and integrity of the external valuation experts. resources or ability to continue operations up to We assessed the plausibility of the Directors downside
30 June 2022. scenario by evaluating the actual Covid-19 impact on
The fair value gain recorded in the current financial We assessed the appropriateness of the valuation the Group to date and comparing it to external industry
period amounts to MUR 1.2Bn (2020: MUR 1.1Bn) which methodology used by the external valuers for determining In undertaking their assessment of going concern analysis to consider the wider outlook for the industry as a
includes an amount of MUR 946M (2020: MUR 405M) the fair value of land and buildings of the Group by for the segment, the Directors of SUN Limited whole. We:
for the Hotels & Resorts segment. comparing it to similar valuations in the market. prepared the future performance and anticipated
cash flows, including appropriate sensitivities and a • performed our own independent reverse stress
It is the Group’s policy that land and buildings are We discussed and challenged key inputs and assumptions worst-case scenario test of the segment’s liquidity, testing on the forecasts to understand how severe the
stated at fair value based on periodic valuations, used by the external valuers, paying particular attention to if limitations are placed on incoming tourists. downside scenarios would have to be to result in the
conducted by an independent external valuer, the level of judgement applied as a result of COVID-19. elimination of liquidity headroom.
less subsequent depreciation and impairment This is a key audit matter as there is significantly more • considered sensitivities over the level of available
for buildings. Our valuation experts assessed the reasonableness of the judgement applied in developing cash flow forecasts
fair values attributed to the different properties of the financial resources indicated by the Group’s financial
including assumptions relating to the date when the
The fair value was determined in line with IFRS 13 Group and the significant assumptions used by the external forecasts taking account of reasonably possible (but
segment’s resorts will be able to re-open despite
to which certain valuation methods are subscribed valuers in this exercise by benchmarking against best official announcements made by the Government not unrealistic) adverse effects that could arise from
to determine the fair value. The fair values are current available industry data and historical rates. of Mauritius and considering the prevailing sanitary these risks individually and collectively.
computed by the external valuer using factual conditions in Mauritius and the segment’s main • challenged the quantum of the potential mitigating
information and professional judgement concerning We verified that the fair value determined by the
source markets (UK, France and South Africa). actions to reduce costs with reference to supporting
market conditions and factors impacting the independent valuation expert for each property
was correctly included in the consolidated financial evidence and assessed whether the mitigating actions
individual properties.
statements. were within the Group’s control.
As at the valuation date, the Hotels & Resorts Furthermore, we reviewed the adequacy and
segment continues to be faced with an We evaluated whether disclosures in the financial
appropriateness of the Directors’ going concern disclosures
unprecedented set of circumstances caused by statements relating to the valuation of properties
in the financial statements.
Covid-19 and the independent valuation is therefore were in accordance with International Financial
reported as being subject to ‘material uncertainty’ as Reporting Standards.
set out in VPS3 and VPGA10 of the RICs valuation –
Other Information
Global Standards. Consequently, in respect of these The directors are responsible for the other information. The other information comprises the corporate governance
valuations, less certainty – and a higher degree of report, the other statutory disclosures (section 221 of the Mauritius Companies Act 2001), the statement of compliance,
caution – should be attached to the valuation than the statement of directors’ responsibilities in respect of the preparation of financial statements, the certificate from
would normally be the case. However, the ‘material the company secretary and the risk report but does not include the consolidated and separate financial statements and
uncertainty’ is included to ensure transparency and our auditor’s report thereon, which we obtained prior to the date of this auditor’s report and other reports, which are
to provide further insight as to the market context expected to be made available to us after that date.
under which the valuation opinion was prepared.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not
The valuation of land and buildings for the Hotels & express any form of assurance conclusion thereon.
Resorts segment was considered to be a key audit
matter due to its significance on the consolidated In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other
statement of financial position and also due to the information identified above and, in doing so, consider whether the other information is materially inconsistent with
fact that it is inherently subjective as it involves a the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be
number of significant estimates and judgement materially misstated.
which might materially affect the carrying value of If, based on the work we have performed on the other information, we conclude that there is a material misstatement
the revalued assets. of this other information, we are required to report that fact. We have nothing to report in this regard.
Please refer to note 2.2 of the financial statements When we read the other reports not yet received, if we conclude that there is a material misstatement therein, we are
for detail on these estimates and judgments. required to communicate the matter to those charged with governance.
In addition to the responsibilities described above and our work undertaken in the course of the audit, the Mauritian
Financial Reporting Act 2004 requires us to report certain matters as described below.
158 159

Corporate Governance Report Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements (Continued)
Our responsibility under the Mauritian Financial Reporting Act 2004 is to report on the compliance with the We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
Code of Corporate Governance (“Code”) disclosed in the annual report and assess the explanations given for significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
non-compliance with any requirement of the Code. From our assessment of the disclosures made on corporate
governance in the annual report, the Company has, pursuant to section 75 of the Mauritian Financial Reporting Act 2004, We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
complied with the requirements of the Code. independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
Responsibilities of the Directors for the Consolidated and Separate Financial Statements
From the matters communicated with the directors, we determine those matters that were of most significance in the
The directors are responsible for the preparation and fair presentation of the consolidated and separate financial audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters.
statements in accordance with International Financial Reporting Standards and in compliance with the Mauritian We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter
Companies Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
In preparing the consolidated and separate financial statements, the directors are responsible for assessing the Group’s
and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
and using the going concern basis of accounting unless the directors either intend to liquidate the Group and/or the
Company or to cease operations, or have no realistic alternative but to do so. Mauritian Companies Act 2001
The directors are responsible for overseeing the Group’s and Company’s financial reporting process. The Mauritian Companies Act 2001 requires that in carrying out our audit we consider and report to you on the following
matters. We confirm that:
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
(a) we have no relationship with or interests in the Company or any of its subsidiaries other than in our capacity as
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements auditor and tax advisor of the Company and some of its subsidiaries, and dealings in the ordinary course of business;
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in (b) we have obtained all the information and explanations we have required; and
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the (c) in our opinion, proper accounting records have been kept by the Company as far as appears from our examination
economic decisions of users taken on the basis of these consolidated and separate financial statements. of those records.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism Other Matter
throughout the audit. We also:
This report, including the opinion, has been prepared for and only for the Company’s shareholders, as a body, in accordance
• Identify and assess the risks of material misstatement of the consolidated and separate financial statements, with Section 205 of the Mauritian Companies Act 2001 and for no other purpose. We do not, in giving this opinion,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material hands it may come save where expressly agreed by our prior consent in writing.
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s and Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors. PricewaterhouseCoopers Robert Coutet, licensed by FRC
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit 29 September 2021
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group’s and Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and
separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group and/or the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial statements,
including the disclosures, and whether the consolidated and separate financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial statements. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
160 161
CONSOLIDATED AND SEPARATE STATEMENTS OF PROFIT OR LOSS CONSOLIDATED AND SEPARATE STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME AND OTHER COMPREHENSIVE INCOME
YEAR ENDED 30 JUNE 2021 YEAR ENDED 30 JUNE 2021
THE GROUP THE COMPANY THE GROUP THE COMPANY

Restated Restated
Notes 2021 2020 2021 2020 Notes 2021 2020 2021 2020
MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000
Other comprehensive income:
Revenue 4 17,868,627 20,955,620 367,508 381,044 Items that will not be reclassified to profit or loss:
Earnings before interest, tax, depreciation, amortisation, Gain on revaluation of land and buildings 9 1,175,801 1,075,647 - -
impairments, reorganisation costs and fair value gain on
Deferred income tax on gain on revaluation of land
investment property 5(a) 2,697,440 3,052,694 269,668 305,754
and buildings 30(c) (112,166) (140,364) - -
Depreciation and amortisation 7(c) (1,300,835) (1,341,233) - -
Remeasurements of post-employment benefit
Earnings before interest, tax, impairments, reorganisation obligations 31 299,442 (327,825) - -
costs and fair value gain on investment property 1,396,605 1,711,461 269,668 305,754
Deferred income tax on remeasurements of
Impairment of non-financial assets and post-employment benefit obligations 30(c) (37,562) 37,904 - -
reorganisation costs 7(b)(i) (203,217) (638,458) - -
Change in the fair value of equity instruments at fair
Impairment of financial assets 7(b)(ii) (372,629) (739,937) - - value through other comprehensive income 12-15 87,193 6,484 5,419,624 (1,727,285)
Fair value gain on investment property 10 959,638 160,297 - - Loss on disposal of equity instruments at fair value
through other comprehensive income (6,292) - (6,292) -
Finance costs 6 (1,294,966) (1,486,701) (140,134) (143,791)
Share of other comprehensive income of associates and
Finance income 6 20,071 47,455 576 3,829
joint ventures 7(d) 48,381 (47,745) - -
Impairment of associates 14 - (108,744) - -
Items that may be reclassified to profit or loss:
Share of results of associates and joint ventures 7(d) 267,304 (51,534) - -
Currency translation differences 246,623 297,692 - -
Profit/(loss) before income tax 772,806 (1,106,161) 130,110 165,792
Cash flow hedges (414,761) (104,626) - -
Income tax expense 35 (79,548) (189,073) (407) (606)
Deferred income tax on cash flow hedges 30(c) (1,398) (1,012) - -
Profit/(loss) for the year from continuing operations 693,258 (1,295,234) 129,703 165,186
Share of other comprehensive income of associates and
Loss from discontinued operations 47 (247,381) (882,910) - - joint ventures 7(d) (9,823) 86,870 - -
Profit/(loss) for the year 445,877 (2,178,144) - - Other comprehensive income for the year, net of tax 1,275,438 883,025 5,413,332 (1,727,285)
Profit/(loss) attributable to: Total comprehensive income for the year 1,721,315 (1,295,119) 5,543,035 (1,562,099)
Owners 617,391 (1,679,713) 129,703 165,186 Total comprehensive income for the year is
Non-controlling interests (171,514) (498,431) - - attributable to:
445,877 (2,178,144) 129,703 165,186 Owners 1,401,210 (1,082,604) 5,543,035 (1,562,099)

Non-controlling interests 320,105 (212,515) - -
1,721,315 (1,295,119) 5,543,035 (1,562,099)
Total comprehensive income for the year attributable to
owners arises from:
Continuing operations 1,978,198 (402,707) 5,543,035 (1,562,099)
Discontinued operations (256,883) (892,412) - -
1,721,315 (1,295,119) 5,543,035 (1,562,099)
Basic and diluted earnings/(loss) per share from
continuing operations (MUR) 8 0.45 (0.70) 0.08 0.10
Basic and diluted earnings/(loss) per share (MUR) 8 0.37 (1.00) 0.08 0.10
The notes on pages 172 to 330 form an integral part of these financial statements. The notes on pages 172 to 330 form an integral part of these financial statements.
162 163
CONSOLIDATED AND SEPARATE STATEMENTS CONSOLIDATED AND SEPARATE STATEMENTS

OF FINANCIAL POSITION OF FINANCIAL POSITION
AS AT 30 JUNE 2021 (CONT’D) AS AT 30 JUNE 2021 (CONT’D)

30-Jun 30-Jun 01-Jul 30-Jun 30-Jun 30-Jun 30-Jun 1-Jul 30-Jun 30-Jun
2021 2020 2019 2021 2020 2021 2020 2019 2021 2020
Notes Restated Restated Notes Restated Restated
MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000
Non-current assets EQUITY AND LIABILITIES
Capital and reserves
Property, plant and equipment 9(a) 23,219,610 25,013,187 24,600,742 - -
Stated capital 25 5,140,994 5,139,579 5,099,561 5,140,994 5,139,579
Right-of-use assets 9(b) 2,811,241 3,038,095 - - - Redeemable restricted A shares 26 39,233 39,233 39,233 39,233 39,233
Investment properties 10 2,741,592 1,780,315 1,611,573 - - Retained earnings 3,159,723 2,579,186 5,161,880 2,427,311 2,302,675
Revaluation, fair value and
Intangible assets 11 1,468,778 1,524,605 1,702,272 - -
other reserves 27 4,341,291 3,542,962 2,830,296 8,071,758 2,656,930
Investments in subsidiary companies 12 - - - 18,243,634 12,928,917 Convertible bonds 27(b) 2,264,792 - - - -
Investments in joint ventures 13 1,979,279 1,973,154 1,718,847 89,908 35,371 14,946,033 11,300,960 13,130,970 15,679,296 10,138,417
Less treasury shares 25 (14,624) (18,005) (149,347) (14,624) (18,005)
Investments in associates 14 3,984,327 3,987,741 4,297,488 227,040 75,028
Owners’ interest 14,931,409 11,282,955 12,981,623 15,664,672 10,120,412
Investments in other financial assets 15 459,852 372,489 356,968 25,011 28,928 Non-controlling interests 7,253,727 7,330,803 9,242,211 - -
Loans and advances to customers 22 6,810,443 5,544,688 3,851,791 - - Total equity 22,185,136 18,613,758 22,223,834 15,664,672 10,120,412
Investments in securities 24 3,753,001 2,909,918 3,052,681 - - Non-current liabilities
Borrowings 29 11,106,822 10,642,879 11,299,937 2,984,635 2,487,637
Leasehold rights and
Lease liabilities 9(b) 3,014,504 3,327,056 177,574 - -
land prepayments 16 - - 534,677 - -
Deferred income tax liabilities 30(c) 1,359,649 1,487,782 1,223,961 - -
Other receivables 17 49,258 45,663 51,456 - - Retirement benefit obligations 31 726,013 1,026,263 797,035 - -
Deferred income tax assets 30 419,361 427,768 161,685 - - Deposits from customers 37 8,990 8,253 667,338 - -
47,696,742 46,617,623 41,940,180 18,585,593 13,068,244 Provisions for other liabilities
and changes 32 62,421 96,428 130,423 - -
Current assets Other payables and deferred revenue 33 179,218 243,207 193,699 - -
Inventories 18 3,744,853 3,417,231 3,799,241 - - 16,457,617 16,831,868 14,489,967 2,984,635 2,487,637
Trade and other receivables 19 5,611,912 5,479,616 6,145,043 318,783 15,302 Current liabilities
Borrowings 29 8,242,810 10,103,097 5,817,827 218,718 480,805
Derivative financial instruments 42 74,380 107,479 53,044 - - Lease liabilities 9(b) 250,659 232,277 2,856 - -
Loans and advances to customers 22 13,057,670 11,063,963 8,833,893 - - Trade and other payables 34 7,058,016 6,364,411 6,503,532 43,067 19,898
Loans to banks 23 - 40,297 413,309 - - Derivative financial instruments 42 92,691 132,003 27,375 - -
Deposits from customers 37 29,079,209 24,624,024 19,410,977 - -
Investments in securities 24 2,455,016 1,802,616 1,446,156 - -
Current income tax liabilities 35 60,889 21,949 113,224 81 443
Current income tax assets 35 150,951 45,087 14,002 - - Provisions for other liabilities
Cash and cash equivalents 20 9,931,175 8,239,849 6,204,956 6,797 25,649 and charges 32 38,673 22,343 40,520 - -
Dividend payable 36 - - 232,438 - -
35,025,957 30,196,138 26,909,644 325,580 40,951
Other payables and deferred revenue 33 99,715 - - - -
Assets classified as held for sale 21 1,403,473 131,969 12,726 - - 44,922,662 41,500,104 32,148,749 261,866 501,146
36,429,430 30,328,107 26,922,370 325,580 40,951 Liabilities directly associated with assets
classified as held for sale 21 560,757 - - - -
TOTAL ASSETS 84,126,172 76,945,730 68,862,550 18,911,173 13,109,195 45,483,419 41,500,104 32,148,749 261,866 501,146
TOTAL LIABILITIES 61,941,036 58,331,972 46,638,716 3,246,501 2,988,783
These financial statements have been approved for issue by the Board of Directors on 29 September 2021. TOTAL EQUITY AND LIABILITIES 84,126,172 76,945,730 68,862,550 18,911,173 13,109,195
Net asset value per share (MUR) 8 8.85 6.69 7.82 9.28 6.00
These financial statements have been approved for issue by the Board of Directors on 29 September 2021.

Chairman of the Board Director P. ARNAUD DALAIS M. A. LOUIS GUIMBEAU
164 165
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEAR ENDED 30 JUNE 2021
Attributable to owners
THE GROUP Share
Redeemable appreciation Revaluation Non
Restricted A Treasury rights and Fair value and other Retained Convertible controlling
Notes Stated capital shares shares other scheme reserve reserves earnings bonds Total interest Total equity
MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000
Balance at 01 July 2020, as restated 5,139,579 39,233 (18,005) 5,267 53,990 3,483,705 2,579,186 - 11,282,955 7,330,803 18,613,758
Profit for the year - - - - - - 617,391 - 617,391 (171,514) 445,877
Other comprehensive income for the year - - - - 67,792 629,195 86,832 - 783,819 491,619 1,275,438
Total comprehensive income for the year - - - - 67,792 629,195 704,223 - 1,401,210 320,105 1,721,315
Transfer of reserve on disposal of equity investments at fair value through
other comprehensive income to retained earnings (iii) - - - - - 65,978 (65,978) - - - -
Transactions with owners in their capacity as owners
Issue of shares - - - - - - - - - 45,797 45,797
Change in ownership interest that do not result in loss of control - - - - - - (719) - (719) 719 -
Employee share option scheme 25 1,415 3,381 (4,796) - - - - - - -
Dividends - - - - - - - - - (446,888) (446,888)
Unclaimed dividends written back - - - - - - 1,225 - 1,225 - 1,225
Issue of convertible bonds 27(b) - - - - - - - 2,264,792 2,264,792 - 2,264,792
Other movements - - - - - 40,160 (58,214) - (18,054) 3,191 (14,863)
Total transactions with owners 1,415 - 3,381 (4,796) - 40,160 (57,708) 2,264,792 2,247,244 (397,181) 1,850,063
Balance at 30 June 2021 5,140,994 39,233 (14,624) 471 121,782 4,219,038 3,159,723 2,264,792 14,931,409 7,253,727 22,185,136
The notes on pages 172 to 330 form an integral part of these financial statements.
166 167
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEAR ENDED 30 JUNE 2021 (CONT’D)
Attributable to owners
THE GROUP Share
Redeemable appreciation Revaluation Non
Restricted A Treasury rights and Fair value and other Retained controlling
Notes Stated capital shares shares other scheme reserve reserves earnings Total interest Total equity
MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000
Balance at 01 July 2019, as previously stated 5,099,561 39,233 (149,347) 19,450 42,558 2,768,288 5,115,438 12,935,181 9,195,956 22,131,137
Effect of prior year adjustments 46 - - - - - - 46,442 46,442 46,255 92,697
Balance at 01 July 2019, as restated 5,099,561 39,233 (149,347) 19,450 42,558 2,768,288 5,161,880 12,981,623 9,242,211 22,223,834
Effect of adoption of IFRS 16 9(b) - - - - - - (510,507) (510,507) (446,237) (956,744)
5,099,561 39,233 (149,347) 19,450 42,558 2,768,288 4,651,373 12,471,116 8,795,974 21,267,090
Profit for the year, as restated - - - - - - (1,679,713) (1,679,713) (498,431) (2,178,144)
Other comprehensive income for the year - - - - 11,432 674,783 (89,105) 597,110 285,915 883,025
Total comprehensive income for the year, as restated - - - - 11,432 674,783 (1,768,818) (1,082,603) (212,516) (1,295,119)
Transactions with owners in their capacity as owners
Issue of shares 25, 27 36,855 - 119,641 (14,183) - - - 142,313 - 142,313
Change in ownership interest that do not
result in loss of control - - - - - - (128,428) (128,428) (793,961) (922,389)
Employee share option scheme 25 3,163 - 11,701 - - - - 14,864 - 14,864
Dividends - - - - - - (134,747) (134,747) (458,694) (593,441)
Unclaimed dividends written back - - - - - - 440 440 - 440
Other movements - - - - - 40,634 (40,634) - - -
Total transactions with owners 40,018 - 131,342 (14,183) - 40,634 (303,369) (105,558) (1,252,655) (1,358,213)
Balance at 30 June 2020, as restated 5,139,579 39,233 (18,005) 5,267 53,990 3,483,705 2,579,186 11,282,955 7,330,803 18,613,758
Other movements are mainly made up of:

(i) Statutory reserve which comprises the accumulated annual transfer of 15% of the net profit for the year in line with
Article 41 of Ordinance n° 88-005 dated 15th April 1988 pertaining to the regulations applicable to the banking sector
in Madagascar.
(ii) Movements in the General Banking Reserve is at the discretion of BNI Madagascar and the shareholders choose
to increase the reserve by the profit for the year net of dividends payable and the amount transferred to
statutory reserve.
Movement in reserves of joint venture are made up of:

(i) Statutory reserve movement which comprises the accumulated annual transfer of 15% of the net profit for the year
of Bank One Ltd in line with Section 21(1) of the Mauritian Banking Act 2004.
(ii) General Banking reserve movement which comprises of provisions in line with the Bank of Mauritius
macroprudential guidelines.
(iii) Movement between revaluation and retained earnings arise on disposal of the associate, Kibo Fund LLC.
The notes on pages 172 to 330 form an integral part of these financial statements.
168 169
SEPARATE STATEMENTS OF CHANGES IN EQUITY CONSOLIDATED AND SEPARATE STATEMENTS OF CASH FLOWS
YEAR ENDED 30 JUNE 2021 YEAR ENDED 30 JUNE 2021
THE COMPANY Share THE GROUP THE COMPANY

appreciation
2021 2020 2021 2020
Redeemable rights
Stated Restricted A Treasury and other Fair value Retained Total Notes Restated
Notes capital shares shares scheme reserves earnings equity MUR ’000 MUR ‘000 MUR ‘000 MUR ‘000
MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 Cash flows from operating activities
Balance at 1 July 2020 5,139,579 39,233 (18,005) 5,268 2,651,662 2,302,675 10,120,412 Cash generated from operations 38 2,405,842 3,091,313 (9,566) 460,906
Profit for the year - - - - - 129,703 129,703 Interest paid (910,642) (843,926) (139,987) (143,795)
Other comprehensive Interest received 20,071 47,651 576 3,829
income for the year - - - - 5,419,624 (6,292) 5,413,332
Tax paid 35 (364,082) (399,666) (770) (163)
Total comprehensive
income for the year - - - - 5,419,624 123,411 5,543,035 Net cash generated from operating activities 1,151,189 1,895,372 (149,747) 320,777
Transactions with Cash flows from investing activities
owners in their capacity Purchase of property, plant and equipment (PPE) 9(a) (788,746) (965,484) - -
as owners
Purchase of investment properties 10 - (1,670) - -
Employee share option
scheme 25 1,415 - 3,381 (4,796) - - - Purchase of investments in associated companies 14 - (3,047) - -
Unclaimed dividends Purchase of investments in joint venture 13 (50,000) (300,000) (50,000) -

written back - - - - - 1,225 1,225 Purchase of other financial assets 15 (3,912) (25,480) - -
Total transactions with Purchase of intangible assets 11 (32,652) (35,673) - -
owners of parent 1,415 - 3,381 (4,796) - 1,225 1,225
Proceeds from disposal of PPE 1,652,131 23,438 - -
Balance at 30 June 2021 5,140,994 39,233 (14,624) 472 8,071,286 2,427,311 15,664,672
Proceeds from disposal of investment property 48,270 4,536 - -
Dividends received from associates 14 156,005 138,197 - -
THE COMPANY Share Proceeds from disposal of associated companies 14 25,101 - - -
appreciation
Redeemable rights Proceeds from disposal of financial assets 1,095 17,326 - 16,316
Stated Restricted A Treasury and other Fair value Retained Total Investment in other assets (3,595) 5,793 - -
capital shares shares scheme reserves earnings equity
Net cash (used in)/generated from investing activities 1,003,697 (1,142,064) (50,000) (16,316)
Notes MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000 MUR’ 000
Cash flow from financing activities
Balance at 1 July 2019 5,099,561 39,233 (149,347) 19,450 4,378,947 2,271,796 11,659,640
Proceeds from borrowings 39(b) 6,947,926 5,611,484 504,117 350,546
Profit for the year - - - - - 165,186 165,186
Repayment of borrowings 39(b) (8,561,619) (2,355,580) (450,000) (70,051)
Other comprehensive
Repayments of principal element of leases 39(b) (204,389) (289,055) - -
income for the year - - - - (1,727,285) - (1,727,285)
Proceeds from convertible bonds 27(b) 2,264,792 - - -
Total comprehensive
income for the year - - - - (1,727,285) 165,186 (1,562,099) Dividends paid to non-controlling interests (407,897) (458,694) - -
Transactions with Acquisition of interests in subsidiary company 12 - (820,664) (54,018) (512,488)
owners in their capacity
Issue of shares to non-controlling interest 45,797 56,674 - -
as owners
Dividends paid to parent 36 - (366,745) - (366,745)
Issue of shares 25 36,855 - 119,641 (14,182) - - 142,314
Net cash from (used in) financing activities 84,610 1,377,420 99 (86,250)
Dividends 36 - - - - - (134,747) (134,747)
Employee share option
scheme 25 3,163 - 11,701 - - - 14,864 Increase/(decrease) in cash and cash equivalents 2,239,496 2,130,728 (199,648) (598,738)
Unclaimed dividends Movement in cash and cash equivalents
written back - - - - - 440 440 At 1 July 6,884,244 4,501,358 25,649 287,294
Total transactions with Exchange differences 68,238 252,158 - -
owners of parent 40,018 - 131,342 (14,182) - (134,307) 22,871
Increase/(decrease) 2,239,496 2,130,728 (199,648) (261,645)
Balance at 30 June 2020 5,139,579 39,233 (18,005) 5,268 2,651,662 2,302,675 10,120,412
At 30 June 39(b) 9,191,978 6,884,244 (173,999) 25,649
170 171
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2021 YEAR ENDED 30 JUNE 2021 (CONT’D)
1. GENERAL INFORMATION 2. BASIS OF ACCOUNTING (Cont’d)

On 24 January 2014, CIEL Investment Ltd was amalgamated with and into Deep River Investment Ltd (DRI). 2.1 Basis of preparation (Cont’d)
The surviving company has subsequently been renamed CIEL Limited.
CIEL Limited (the “Company”) is a public company incorporated and domiciled in Mauritius and listed on the Official
(c) Going concern (Cont’d)
Market of the Stock Exchange of Mauritius. Its registered office is situated at 5th Floor, Ebène Skies, Rue de L’Institut, ii) Group (Cont’d)
Ebène, Republic of Mauritius.
With the current and anticipated economic conditions related to the Covid-19 pandemic, the Directors of
Its main activity is to provide long term growth and dividend income for distribution to investors. SUN Limited, which is the Hotels and Resorts segment of the Group, have performed a detailed assessment and
concluded on SUN Limited’s ability to continue as a going concern as described in the sub-section below.
CIEL Limited invests in a diversified portfolio of equity and equity related investments in six strategic sectors
namely textile, agro, property, hotels and resorts, finance and healthcare. On this basis, the CIEL Group’s financial statements are prepared on the going concern basis. Given the Group’s
available cash resources and the other actions taken by management to mitigate the financial and operational
These financial statements will be submitted for consideration and approval at the forthcoming Annual Meeting impact of Covid-19, the Directors are of the view that the CIEL Group has sufficient resources to continue
of Shareholders of the Company. operations as a going concern in a sustainable manner.
SUN Limited
2. BASIS OF ACCOUNTING
SUN Limited and its subsidiaries (“SUN Group”) had accumulated losses of MUR 3.62Bn (2020: MUR 1.80Bn)
2.1 Basis of preparation as at 30 June 2021. Sun Group’s current liabilities exceeded the current assets by MUR 1.45Bn (2020: MUR 3.56Bn)
at 30 June 2021.
(a) Statement of compliance The Covid-19 pandemic has impacted the tourism industry worldwide in the financial year ended 30 June 2021.
The consolidated financial statements of CIEL Limited are prepared in compliance with the Mauritius Companies Mauritius’ borders remained closed throughout, with the tourism industry registering no tourists. The borders
Act 2001 and in accordance with International Financial Reporting Standards (IFRS) as issued by the International were reopened on 15 July 2021, but the Government continue to maintain strict sanitary restrictions with
Accounting Standards Board (‘IASB’). The financial statements are also prepared in line with interpretations issued mandatory quarantine until 30 September 2021, when herd immunity is expected to be achieved.
by the IFRS Interpretations Committee, the Financial Reporting Pronouncements as issued by the Financial With the border closure, SUN Group reinforced its cost reduction measures which were implemented during the
Reporting Standards Council and any other regulatory requirements. initial lockdown in March 2020 and embarked on a major restructuring exercise to significantly reduce its fixed
cost base compared to pre-Covid-19 level.
(b) Historical cost convention
The following factors contributed to ensuring enough cash flows to sustain SUN Group’s working capital for the
The financial statements are prepared on a going concern basis and include the consolidated financial statements year ended 30 June 2021:
of the parent company and its subsidiary companies (the Group) and the separate financial statements of the parent • Maximising revenues from quarantine and local businesses;
company (the Company). The financial statements are prepared under the historical cost convention except for:
• Support from the Mauritius Investment Corporation Ltd in the form of redeemable convertible bonds of
Company - Investments in subsidiaries measured at fair value through other comprehensive income (‘FVOCI’) MUR 3.1Bn was secured;
Investments in associates measured at FVOCI • Refinancing and/or deferral of existing bank loans;
Investments in joint ventures measured at FVOCI • Receipts of the Government Wage Assistance Scheme to cover part of its wages bill; and
Investments in other financial assets measured at FVOCI • State land lease waiver for its resorts
Furthermore, the proceeds from the strategic disposal of its only resort in the Maldives in May 2021 shall allow
Group - Land and buildings at fair value short-term debt commitments to be met.
Investment properties at fair value
Derivative financial instruments at fair value through profit or loss (‘FVPL’) Management of SUN Group has prepared forecasted cash flows for the financial year ending 30 June 2022 to
assess the ability of the SUN Group to operate as a going concern. The cash flow projections were derived while
Where necessary the comparative figures have been amended to conform with change in presentation of the considering the remaining funding to be received from the Mauritius Investment Corporation Ltd (“MIC”) and
current year. Government measures announced as follows:
• Extension of the Government Wage Assistance Scheme up to 30 September 2021;
(c) Going concern • As per the guidelines issued by the Bank of Mauritius, all existing bank loans repayment are to be deferred until
The outbreak of Coronavirus (Covid-19) has had unprecedented effects on the Group’s and the Company’s results. 30 June 2022 due to the Covid-19 impact on the tourism industry; and
The measures implemented locally and worldwide, including international travel restrictions, have caused • Deferral of the state land lease for resorts for FY 21-22 to 30 June 2022.
disruptions to the Group’s operations. As Covid-19 continues to evolve, the extent of the impact of the pandemic The main assumptions considered in the forecasted cash flows are:
remains uncertain as it is dependent on future developments that cannot be accurately predicted at this time. • No revenue is expected in Phase 1 opening of the borders, that is in first quarter of the financial year ending
The Directors have assessed the Group’s and Company’s ability to continue as a going concern as follows: 30 June 2022;
i) Company • Opening of all resorts as from 1 October 2021, with a 23% drop in room nights in FY 2022 as compared to
FY 2019 (9 months pre-Covid-19); and
The Company has made a profit of MUR 130M (2020: MUR 165M) for the year ended 30 June 2021 and its total • Debtors’ collections and suppliers’ payments have been assumed in line with previous years.
assets exceed its total liabilities by MUR 15.7Bn (2020: MUR 10.1Bn). The Company is also in a net current asset
position of MUR 64M (2020: net current liability position of MUR 460M). As such, the Directors are of the opinion The management of SUN Group has also performed a worst-case scenario with very low occupancy (drop of 50%
that the Company will be able to continue as a going concern. in room nights from FY2019) and longer debtors’ collections. With this scenario, SUN Group is still expected to have
a positive cash headroom at 30 June 2022, even though strict cost reduction measures have not been captured
ii) Group in the worst case scenario, such as the reduction of major expenses (voluntary pay cut, leave without pay and
suspension of material contracts) and expected support to be provided by Government (Wage Assistance Scheme,
The Group made a profit of MUR 446M (2020: loss of MUR 2.2Bn) for the year ended 30 June 2021 and had net state land lease deferral, deferral of principal and interest by lenders and additional support funds from the MIC).
current liabilities of MUR 9Bn (2020: MUR 11Bn) as of that date. Excluding the fair value gain on investment property
amounting to MUR 960M (2020 - MUR 160M), the Group made a loss of MUR 514M (2020: loss of MUR 2.3Bn) for the Based on cash flow forecast projections for the next 12 months and the funding secured so far, the Directors of the
year ended 30 June 2021. SUN Group are of the view that the SUN Group will be able to meet its financial obligations and fund its operational
losses that can result from the continuing Covid-19 impact in the next financial year. Accordingly, the financial
statements of SUN Limited have also been prepared on the going concern basis. As such, the directors of the
Group are of the view that the Group will be able to operate as a going concern.
172 173

YEAR ENDED 30 JUNE 2021 (CONT’D) YEAR ENDED 30 JUNE 2021 (CONT’D)
2. BASIS OF ACCOUNTING (Cont’d) 2. BASIS OF ACCOUNTING (Cont’d)

2.1 Basis of preparation (Cont’d) 2.1 Basis of preparation (Cont’d)
(d) Impact of Covid-19 (d) Impact of Covid-19 (Cont’d)
Due to the coronavirus (Covid-19) pandemic, national lockdowns, imposed by governments worldwide, The Company
have resulted in extensive travel restrictions and quarantine measures. This has impacted a wide range of industries
whereby certain businesses have had to limit or suspend their operations. In the CIEL Group, aside from the hotels
Description Additional information
and resorts segment, all other segments have fared well during the year, returning to a profit-making position.
Refer to note 3 on Segment Information for further details.
Fair value of investments at fair value through other comprehensive income Refer to notes 12 to 15.
Given that the Group had already been impacted by Covid-19 in the previous financial year, whereby significant
provisions were already made in respect of certain assets, as disclosed in note 7 of the financial statements, When assessing the fair value measurement of financial instruments for this
the specific areas of judgement detailed in note 2.2 of the accounting policies did not significantly change this period, the Company has reviewed the relevance of the valuation models
year as a result of Covid-19, other than on the accounting of the convertible bonds, which were received by the that have been used in the previous years and made necessary updates
hotels and resorts segment from the Mauritius Investment Corporation during the year. Further details regarding where applicable.
the judgement and accounting policies applied are given in note 2 of the financial statements, while the terms and
The appropriateness of the inputs to valuations was also considered, as well
conditions are given in note 27(b).
as the impact of any change in inputs on the classification of exposures in the
Nevertheless, given the continued prevalence of pandemic worldwide, the Directors have continued to apply fair value hierarchy, transfers within the fair value hierarchy and the level 3
significant judgement and estimates during this financial year in the preparation of the financial statements. sensitivity analysis that may be required if applicable.
In addition to the key areas where additional judgement has been applied, the following balances and related
disclosures have also been impacted by Covid-19: (e) Basis of consolidation
The consolidated financial statements comprise the financial statements of CIEL Limited and its subsidiaries as at
The Group
30 June 2021.
Control is achieved when the Group is exposed or has rights to variable returns from its involvement with the
Description Additional information investee and could affect those returns through its power over the investee. Specifically, the Group controls an
investee if and only if the Group has:
Overall application of the going concern principle Refer to note 2.1. • Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of
the investee),
The Directors of CIEL Limited and the Directors of the subsidiaries have
• Exposure or rights to variable returns from its involvement with the investee, and
also assessed the respective entities’ ability to continue as a going concern.
Particular attention was given to the hotels and resorts segment given the • The ability to use its power over the investee to affect its returns.
impact Covid-19 has had on this segment.
When the Group has less than a majority of the voting or similar rights of an investee, it considers all relevant facts
Convertible bonds Refer to notes 2 and 27(b). and circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement with the other vote holders of the investee
Two of the subsidiaries in the hotels and resorts segment obtained financial • Rights arising from other contractual arrangements
support from the Mauritius Investment Corporation in the form of redeemable
• The Group’s voting rights and potential voting rights
convertible bonds for an amount of MUR 2.275Bn during the year.
The Group re-assesses whether it controls an investee if facts and circumstances indicate that there are
Significant judgement has been applied by the Directors in the determination
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group
of the appropriate accounting treatment for this type of instrument.
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
Property, plant and equipment and goodwill Refer to notes 7 for impairment income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated
accounted for in the financial statements from the date the Group gains control until the date the Group ceases to control
While significant impairment was already accounted for in the previous years, the previous year, and notes 9 and the subsidiary.
Directors of each subsidiary have again performed an impairment assessment 11 for details of the impairment
of the carrying amounts of property, plant and equipment and goodwill as at Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of
assessment performed.
30 June 2021 and no additional impairment was deemed necessary. the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests
having a deficit balance. When necessary, adjustments are made to the financial statements of the subsidiaries to
Expected credit loss on financial assets carried at amortised cost Refer to note 45. bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities,
equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated
A significant portion of the financial assets carried at amortised cost lies under in full on consolidation.
the Malagasy banking subsidiary, BNI Madagascar. During the year, the Directors
factored in the impact of Covid-19 on the Malagasy economy while computing A change in ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction.
the expected credit loss. The impact of loan moratoriums given to clients on If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities,
their respective staging was also considered. non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit
or loss. Any investment retained is recognised at fair value, unless significant influence is maintained, in which case,
the investment will be accounted for using the equity method of accounting.
174 175


(f) Foreign currencies (h) Financial assets and liabilities
(i) Functional and presentation currency Measurement methods
Items included in the financial statements are measured using Mauritian Rupees, the currency of the primary The Group and the Company classify their financial assets as subsequently measured at either amortised cost
economic environment in which the entity operates (“functional currency”) and rounded to the nearest thousand or fair value depending on the Group’s and the Company’s business model for managing the financial assets and
(MUR ‘000). The consolidated financial statements are presented in Mauritian Rupees, which is the Company’s the contractual cash flow characteristics of the financial assets. A financial asset is measured at amortised cost
functional and presentation currency. only if both of the following conditions are met:
(ii) Transactions and balances • it is held within a business model whose objective is to hold assets in order to collect contractual cash flow; and
• the contractual terms of the financial asset represent contractual cash flow that are solely payments of
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing principal and interest.
on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in Amortised cost and effective interest rate
foreign currencies are recognised in profit or loss, except when deferred in equity as qualifying cash-flow hedges
and qualifying net investment hedges. The amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition
minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method
Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any
rates at the date of the transaction. loss allowance.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
at the date the fair value was determined. through the expected life of the financial asset or financial liability to the gross carrying amount of a financial
asset (i.e., its amortised cost before any impairment allowance) or to the amortised cost of a financial liability.
Translation differences on non-monetary items, such as equities held at fair value through profit or loss, The calculation does not consider expected credit losses and includes transaction costs, premiums or discounts
are reported as part of the fair value gain or loss. Translation differences on non-monetary items, such as equities and fees and points paid or received that are integral to the effective interest rate, such as origination fees.
classified as available-for-sale financial assets, are included in the fair value reserve in equity. For purchased or originated credit-impaired (‘POCI’) financial assets – assets that are credit-impaired at initial
recognition – the Group calculates the credit-adjusted effective interest rate, which is calculated based on the
(iii) Group companies
amortised cost of the financial asset instead of its gross carrying amount and incorporates the impact of expected
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary credit losses in estimated future cash flows.
economy) that have a functional currency different from that of the presentation currency of the Company,
When the Group revises the estimates of future cash flows, the carrying amount of the respective financial assets
are translated as follows:
or financial liability is adjusted to reflect the new estimate discounted using the original effective interest rate.
(a) assets and liabilities are translated at the closing rate at the reporting date; Any changes are recognised in profit or loss.
(b) income and expenses are translated at average exchange rates (unless this average is not a reasonable
Initial recognition and measurement
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income
and expenses are translated at the dates of the transactions); and Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual
(c) the resulting exchange differences are recognised in other comprehensive income. provisions of the instrument. Regular way purchases and sales of financial assets are recognised on trade-date,
the date on which the Group commits to purchase or sell the asset.
On consolidation, exchange differences arising from the translation of the net investment in foreign entities,
and of borrowings and other currency instruments designated as hedges of such investments, are taken to At initial recognition, the Group measures a financial asset or financial liability at its fair value plus or minus, in the
shareholders’ equity. In the event of disposal of a foreign operation, exchange differences are recognised in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are
profit or loss as part of the gain or loss on sale. incremental and directly attributable to the acquisition or issue of the financial asset or financial liability, such as
fees and commissions. Transaction costs of financial assets and financial liabilities carried at fair value through
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities profit or loss are expensed in profit or loss. Immediately after initial recognition, an expected credit loss allowance
of the foreign entity and translated at the closing rate. (ECL) is recognised for financial assets measured at amortised cost and investments in debt instruments measured
at FVOCI which results in an accounting loss being recognised in profit or loss when an asset is newly originated.
(g) (i) Earnings before interest, tax, depreciation, amortisation, impairments, reorganisation costs and fair
value gain on investment property When the fair value of financial assets and liabilities differs from the transaction price on initial recognition,
the entity recognises the difference as follows:
Earnings before interest, tax, depreciation, amortisation, impairments reorganisation costs and fair value gain
a) When the fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e.,
on investment property is stated after adding to earnings before interest, tax, depreciation and amortisation,
a Level 1 input) or based on a valuation technique that uses only data from observable markets, the difference
the significant impairment charges incurred on the Group’s assets, reorganisation costs and fair value gain
on investment property during the year. The Directors make use of this measure to monitor the operational is recognised as a gain or loss.
performance of the Group as they deem that it shows the underlying performance of the Group more accurately. b) In all other cases, the difference is deferred, and the timing of recognition of deferred day one profit or loss is
During the year ended 30 June 2021, the Group received a letter of intent from the Economic Development Board determined individually. It is either amortised over the life of the instrument, deferred until the instrument’s
for the development of a Smart City project, which caused a significant increase in the fair value of the property fair value can be determined using market observable inputs, or realised through settlement.
earmarked for this project. To enhance the understandability of the impact of the day-to-day operations aside
Classification and subsequent measurement
from this transaction, the Directors determined that it was more appropriate to present the fair value gain on the
investment property separately. The Group classifies its financial assets in the following measurement categories:
(ii) Earnings before interest, tax, impairments, reorganisation costs and fair value gain on investment property • Fair value through other comprehensive income (FVOCI);
• Fair value through profit or loss (FVPL);
Earnings before interest, tax, impairments, reorganisation costs and fair value gain on investment property stated • Amortised cost.
after adding to earnings before interest and tax, the significant impairment charges incurred on the Group’s assets,
reorganisation costs and fair value gain on investment property during the year.
176 177


(h) Financial assets and liabilities (Cont’d) (h) Financial assets and liabilities (Cont’d)
The classification requirements for debt and equity instruments are described below. Derecognition other than on a modification
Debt instruments Financial assets, or a portion thereof, are derecognised when the contractual rights to receive the cash flows from
the assets have expired, or when they have been transferred and either:
Debt instruments are those instruments that meet the definition of a financial liability from the issuer’s
perspective, such as loans, government and corporate bonds and trade receivables purchased from clients in (i) the Group transfers substantially all the risks and rewards of ownership, or
factoring arrangements without recourse.
(ii) the Group neither transfers nor retains substantially all the risks and rewards of ownership and the Group has
Classification and subsequent measurement of debt instruments depend on: not retained control.
(i) the Group’s business model for managing the asset; and
The Group enters transactions where it retains the contractual rights to receive cash flows from assets but
(ii) the cash flow characteristics of the asset.
assumes a contractual obligation to pay those cash flows to other entities and transfers substantially all the
Based on these factors, the Group classifies its debt instruments into one of the following three risks and rewards. These transactions are accounted for as ‘pass through’ transfers that result in derecognition if
measurement categories: the Group:
• Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows (i) Has no obligation to make payments unless it collects equivalent amounts from the assets;
represent solely payments of principal and interest (‘SPPI’), and that are not designated at FVPL, are measured
at amortised cost. The carrying amount of these assets is adjusted by any expected credit loss allowance (ii) Is prohibited from selling or pledging the assets; and
recognised and measured. Interest income from these financial assets is included in ‘Interest and similar
(iii) Has an obligation to remit any cash it collects from the assets without material delay.
income’ using the effective interest rate method.
• Fair value through other comprehensive income (FVOCI): Financial assets that are held for collection of Equity instruments
contractual cash flows and for selling the assets, where the assets’ cash flows represent solely payments
Equity instruments are instruments that meet the definition of equity from the issuer’s perspective; that is,
of principal and interest, and that are not designated at FVPL, are measured at fair value through other
instruments that do not contain a contractual obligation to pay and that evidence a residual interest in the issuer’s
comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the
net assets. Examples of equity instruments include basic ordinary shares.
recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses on the
instrument’s amortised cost which are recognised in profit or loss. When the financial asset is derecognised, The Group subsequently measures all equity investments at fair value through profit or loss, except where the
the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and Group’s management has elected, at initial recognition, to irrevocably designate an equity investment at fair value
recognised in ‘Net Investment income’. Interest income from these financial assets is included in ‘Interest through other comprehensive income. The Group’s policy is to designate equity investments as FVOCI when those
income’ using the effective interest rate method. investments are held for purposes other than to generate investment returns. When this election is used, fair value
• All financial assets not classified as amortised cost or FVOCI as described above are classified as FVPL and held at gains and losses are recognised in OCI and are not subsequently reclassified to profit or loss, including on disposal.
fair value. This includes all derivative financial assets. On initial recognition, the Group may irrevocably elect to Impairment losses (and reversal of impairment losses) are not reported separately from other changes in fair value.
designate a financial asset that otherwise meets the requirements to be measured at amortised cost or FVOCI Dividends, when representing a return on such investments, continue to be recognised in profit or loss as other
as FVPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. income when the Group’s right to receive payments is established.
This election is made on an individual instrument basis.
Gains and losses on equity investments at FVPL are included in the ‘Net trading income’ line in the statement of
• These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend profit or loss.
income, are recognised in profit or loss when the Group’s and/or the Company’s right to receive the return is
established, unless such instrument is designated in a hedging relationship. Expected credit losses
Business model: the business model reflects how the Group manages the assets in order to generate cash flows; The Group assesses on a forward-looking basis the expected credit loss (‘ECL’) associated with its debt
that is, whether the Group’s objective is solely to collect the contractual cash flows from the assets or is to collect instrument assets carried at amortised cost and FVOCI and with the exposure arising from loan commitments
both the contractual cash flows and cash flows arising from the sale of assets. If neither of these is applicable and financial guarantee contracts. The Group recognises a loss allowance for such losses at each reporting date.
(e.g., financial assets are held for trading purposes), then the financial assets are classified as part of ‘other’ The measurement of ECL reflects:
business model and measured at FVPL. Factors considered by the Group in determining the business model for a
group of assets include past experience on how the cash flows for these assets were collected, how the asset’s • An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
performance is evaluated and reported to key management personnel, how risks are assessed and managed and • The time value of money; and
how managers are compensated.
• Reasonable and supportable information that is available without undue cost or effort at the reporting date
SPPI: Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash about past events, current conditions and forecasts of future economic conditions.
flows and sell, the Group assesses whether the financial instruments’ cash flows represent solely payments of
principal and interest (the ‘SPPI test’). In making this assessment, the Group considers whether the contractual The credit risk note provides more detail of how the expected credit loss allowance is measured.
cash flows are consistent with a basic lending arrangement i.e. interest includes only consideration for the time
value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending · Impairment of non-financial assets
arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a
The carrying amounts of assets are assessed at each reporting date determine whether there is any indication
basic lending arrangement, the related financial asset is classified and measured at fair value through profit or loss.
of impairment. If such indication exists, the recoverable amount of the asset is estimated, being the higher of
The Group reclassifies debt investments when and only when its business model for managing those assets changes. the asset’s net selling price and its value-in-use, to determine, the extent of the impairment loss, if any and
The reclassification takes place from the start of the first reporting period following the change. Such changes are the carrying amount of the asset is reduced to its recoverable amount. The impairment loss is recognised as an
expected to be very infrequent and none occurred during the year. expense immediately, unless the asset is carried at revalued amount, in which case the impairment loss is treated
as a revaluation decrease.
178 179


2.1 Basis of preparation (Cont’d) 2.2 Critical accounting judgements and key sources of estimation uncertainty
· Borrowing costs The preparation of the Group’s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
All borrowing costs are charged to the statement of profit and loss in the period in which they are incurred. disclosures, and the disclosures of contingent liabilities. Uncertainty about these assumptions and estimates could
result in outcome that requires a material adjustment to the carrying amount of assets and liabilities affected in
· Provisions
future periods.
Provisions are recognised when the Group and/or the Company have a present obligation as a result of a past
In the process of applying the Group’s accounting policies, management has made the following judgements
event which it is probable will result in an outflow of economic benefits that can be reasonably estimated.
and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,
Provisions are determined by discounting the expected future cash flows are a pre-tax rate that reflects current
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
market assessments of the time value of money and the risks specific to the liability. The unwinding of the
the next financial year. Existing circumstances and assumptions about future developments may change due to
discount is recognised as finance cost.
circumstances beyond the Group’s control and are reflected in the assumptions if and when they occur.
· Government grants (i) Impairment of goodwill and non-current assets
Government grants are recognised if it is reasonably certain that the related conditions will be satisfied and Management has assessed the recoverable amounts, as at 30 June 2021 and 2020, of cash generating units (CGUs)
the grants will actually be received. Grants for the purchase of non-current assets (asset-related grants) are to which goodwill has been allocated and CGUs that have indicators for impairment. Note 11 sets out the CGUs to
deducted from the historical cost of the assets in question and reduce future depreciation. Grants in respect of which goodwill has been allocated for impairment testing purposes.
wages obtained under the government wage assistance scheme are accounted for in the statement of profit or
loss in the period to which the wages relate. The recoverable amount of CGUs is determined based on their value-in-use or their fair value less cost to
disposal, if any. The value-in-use has been determined via future net cash flows based on the budget for the next
· COVID-19 Levy 12 months as a starting point. Cash flow projections of 3 to 10 years have been considered and discounted at an
The COVID-19 Levy is contingent on the entity earning chargeable income in the current year and is recognised in appropriate discount rate and added to the estimated discounted terminal value. The determination of the cash
profit or loss when and if a chargeable income arises. It is calculated as the lower of the government grant received flow projections, discount rates and terminal values entails significant assumptions made by management of the
under the wage assistance scheme in 2020 and 2021 and 15% of the chargeable income of the current year, less any effects of uncertain future events on those assets at the reporting date. Refer to Note 9 and Note 11 for impairment
amount already refunded to the authorities in 2020. assessment of PPE and impairment of goodwill respectively.
· Convertible bonds (ii) Pension benefits
During the financial year ended 30 June 2021, the hotel and resorts segment of the Group contracted with the The present value of the pension obligations depends on a number of factors that are determined on an actuarial
Mauritius Investment Corporation Ltd (“MIC”), a wholly owned subsidiary of the Bank of Mauritius, the issue of basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions
redeemable convertible bonds. The Group has accounted for the convertible bonds as equity on initial recognition include the discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations.
on the following basis: The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should
• The issuer has the unconditional right to avoid paying cash, and if the principal of the bonds is converted be used to determine the present value of estimated future cash outflows expected to be required to settle
to ordinary shares, these will be converted by exchanging a fixed notional for a fixed number of shares, the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates
and any potential variability would serve to maintain the relative economic rights of the shareholders and of treasury bills that are denominated in the currency in which the benefits will be paid, and that have terms to
the subscriber, resulting in no violation of the ‘fixed for fixed’ requirement. Hence, the Group deems that the maturity approximating the terms of the related pension obligation.
principal component can be classified under equity.
Other key assumptions for pension obligations are based in part on current market conditions. Refer to note 31 for
• The bonds bear a fixed interest rate (the contractual interest and penalty-interest rates are both fixed) and can
further details.
be considered to be predetermined because it only varies over time. As a result, the Group determines that
such an instrument meets the ‘fixed for fixed’ condition whereby each unit of the convertible bond converts (iii) Convertible bonds
into a fixed number of shares and hence the instrument can be treated as equity.
During the year ended 30 June 2021, two of the Group’s subsidiaries obtained funding from the Mauritius
The bonds are initially measured based on the subscription proceeds received net of transaction costs, Investment Corporation (“MIC”), as per the terms and conditions disclosed in note 27(b) to the financial statements.
without subsequently remeasurement.
Significant accounting judgement has been applied by the Directors in the determination of the appropriate
· Cost of sales and operating expenses accounting policy, and legal representation has been obtained by the Directors with regards to certain clauses
within the contract, which are disclosed in note 27(b).
Cost of sales comprises direct material and labour costs but also indirect costs that can be directly attributed to
generating revenue. These are included in profit or loss.
Operating expenses relate to indirect costs of operations accounted on the accruals basis.
· Earnings per share (EPS)

i) Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the Group and Company;
• by the weighted average number of ordinary shares outstanding during the financial year.
ii) Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:
• the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares; and
• the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
180 181


2.2 Critical accounting judgements and key sources of estimation 2.2 Critical accounting judgements and key sources of estimation
uncertainty (Cont’d) uncertainty (Cont’d)
(iv) Revaluation of property, plant and equipment and investment properties (vi) Asset lives and residual values
The Group carries its investment properties at fair value, with changes in fair value being recognised in the profit Property, plant and equipment are depreciated over its useful life taking into account residual values,
or loss. In addition, it measures land and buildings at revalued amounts with changes in fair value being recognised where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending
in other comprehensive income. The fair value is determined based on independent valuation by valuers who make on a number of factors. In reassessing asset lives, factors such as technological innovation, product life cycles
use of valuation methods, depending on the type of asset being revalued. Such methods depend on a variety of and maintenance programmes are taken into account. Residual value assessments consider issues such as future
assumptions which are further disclosed in notes 9 and 10. market conditions, the remaining life of the asset and projected disposal values. Consideration is also given to the
extent of current profits and losses on the disposal of similar assets.
During the financial year ended 30 June 2021, a revaluation gain of MUR 1.2Bn, of which MUR 946M is attributable
to the Hotel segment, was recognised. Due to the volatile market conditions arising from Covid-19, it is difficult (vii) Leases
to estimate inputs to be used to calculate the fair value. The Directors of the Group deemed the depreciated
replacement cost approach to be the most suitable valuation technique for the leasehold land improvements, The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered
buildings and site improvements of the Hotel segment as compared to other techniques such as the income by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to
approach and the market comparable approach. The most significant input into this method of valuation is the terminate the lease, if it is reasonably certain not to be exercised.
replacement cost per square metre.
The Group applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option
A revaluation gain of MUR 959M has been recognised on investment properties during the financial year ended to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for
30 June 2021. Most of the revaluation gain, being MUR 942M, has been recognised on the land owned by a subsidiary it to exercise either the renewal or termination, including: whether there are significant penalties to terminate
of the Property segment, Ferney Limited. The land is currently being developed through the Smart City project as (or not extend); whether any leasehold improvements are expected to have a significant remaining value; historical
described in Note 10. There are no similar projects in the area that would allow the market comparable valuation lease durations; the importance of the underlying asset to the operations; and the costs and business disruption
technique to be used for the fair valuation of the land. Hence, the Directors of the Group deemed the residual required to replace the leased asset. The lease term is reassessed if a significant event or a significant change
method of valuation to be the most suitable valuation technique. The most significant input into this method of in circumstances occurs which affects the assessment of reasonable certainty. During the financial years ended
valuation is the estimated possible revenue of the developable land and the net of all the costs of developing the 30 June 2021 and 30 June 2020, no option has been exercised and hence, no reassessment has been performed.
entire Smart City, mostly being the cost of construction of the buildings and services.
(viii) Determining whether forecast sales are highly probable
(v) Fair value of securities not quoted in an active market
The Group is exposed to foreign currency risk, most significantly to the Euro, Pound Sterling and US Dollar,
The fair value of securities not quoted in an active market may be determined by the Group and the Company using as the Group’s sales are denominated in these currencies. The Group hedges these exposures by entering into
valuation techniques including third party transactions values, earnings, net asset value or discounted cash flows, foreign currency loans (“hedging instruments”) with future principal payments that will match the future sales
whichever is appropriate. The Group would exercise judgement and estimates on the quantity and quality of (“hedged item”) in these currencies.
pricing sources used.
To apply hedge accounting, a condition is that the forecast transaction must be “highly probable”. The Group
Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer to has applied judgement in assessing whether the forecasted foreign currency revenue remain “highly probable”,
notes 12, 13, 14 and 15 for further details. still expected to occur or is no longer expected to occur, particularly in light of the decline in expected bookings
patterns resulting from the Covid-19 pandemic and the related suspension of the operations of the Group. In making
Determination of fair value this assessment, the Group has considered the most recent budgets and plans, including the Covid-19 scenario.
The fair value of publicly traded securities is based on: (ix) Recoverability of deferred income tax assets
• Their market value which is calculated by reference to the Stock Exchange - quoted prices at the close of Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will
business at the end of reporting period; be available against which the losses can be utilised. Significant judgement is required to determine the amount of
deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together
• Quoted prices plus premium; or with future tax planning strategies. The outcome of their actual utilisation may be different.
• Recent transaction price. (x) Measurement of the expected credit loss allowance
In assessing the fair value of unquoted investments, the Group uses a combination of discounted cash flow, The IFRS 9 impairment requirements are based on an expected credit loss model. Madagascar’s (Banking Subsidiary
price to book, earnings multiple, net asset base and dividend yield basis. The valuation policy is summarised below: of CIEL Finance Limited referred to as ‘The Bank’) accounting policy for impairment of financial assets is listed below.
• 50% stake or more in investee companies – Net asset value, price earnings multiple or discounted cash flow The Bank applies a three-stage approach to measuring expected credit losses (ECL) on debt instruments accounted
and volume weighted average price method for at amortised cost and FVOCI. Assets migrate through the following three stages based on the change in credit
quality since initial recognition:
• Less than 50% stake in investee companies - earnings multiple
(i) Stage 1: 12-months ECL
• Property investee companies - net asset basis whereby properties are revalued on a regular basis on their open
market value For exposures where there has not been a significant increase in credit risk since initial recognition and that are not
credit impaired upon origination, the portion of the lifetime ECL associated with the probability of default events
• Investments in new ventures are valued at cost for the first year less any impairment loss recognised to reflect
occurring within the next 12 months is recognised.
irrecoverable amounts except if there has been significant change till year end
(ii) Stage 2: Lifetime ECL – not credit impaired
• Investment entities - net asset basis
For credit exposures where there has been a significant increase in credit risk since initial recognition but that are
• Banking sector - mix of price to book and price earnings ratios or dividend discounting model as appropriate
not credit impaired, a lifetime ECL is recognised.
• Recent transaction price, where applicable
182 183


2.2 Critical accounting judgements and key sources of estimation 2.3 Application of new and revised International Financial Reporting Standards
uncertainty (Cont’d) New standards and interpretations adopted by the group
(x) Measurement of the expected credit loss allowance (Cont’d) Covid-19-Related Rent Concessions (Amendment to IFRS 16) provides practical relief to lessees in accounting for
(iii) Stage 3: Lifetime ECL – credit impaired rent concessions occurring as a direct consequence of COVID-19, by introducing a practical expedient to IFRS 16.
The practical expedient permits a lessee to elect not to assess whether a COVID-19-related rent concession is
Financial assets are assessed as credit impaired when one or more events that have a detrimental impact on the a lease modification. A lessee that makes this election shall account for any change in lease payments resulting
estimated future cash flows of that asset have occurred. For financial assets that have become credit impaired, from the COVID-19-related rent concession the same way it would account for the change applying IFRS 16 if the
a lifetime ECL is recognised and interest revenue is calculated by applying the effective interest rate to the change were not a lease modification.
amortised cost (net of provision) rather than the gross carrying amount.
The practical expedient applies only to rent concessions occurring as a direct consequence of COVID-19 and only if
At each reporting date, the Bank assesses whether there has been a significant increase in credit risk for financial all the following conditions are met:
assets since the initial recognition by comparing the risk of default occurring over the expected life between the
reporting date and the date of initial recognition. a) the change in lease payments results in revised consideration for the lease that is substantially the same as,
or less than, the consideration for the lease immediately preceding the change;
In determining whether credit risk has increased significantly since initial recognition, the Bank uses its internal
credit risk grading system, external risk ratings and forecast information to assess deterioration in credit quality b) any reduction in lease payments affects only payments originally due on or before 30 June 2021; and
of a financial asset.
c) there is no substantive change to other terms and conditions of the lease.
The Bank assesses whether the credit risk on a financial asset has increased significantly on an individual or
The Group has applied the amendment to IFRS 16 (as issued by the International Accounting Standards Board (IASB)
collective basis. For the purposes of a collective evaluation of impairment, financial assets are grouped on the
in May 2020).
basis of shared credit risk characteristics, taking into account instrument type, credit risk ratings, date of initial
recognition, remaining term to maturity, industry, geographical location of the borrower and other relevant factors. During the year ended 30 June 2021, the hotels and resorts segment has received a waiver from the government
for lease rentals due on state owned land for the period from 01 July 2020 to 30 June 2021. This waiver has been
The Bank considers its historical loss experience and adjusts this for current observable data. In addition, the Bank
accounted in line with the amendment to IFRS 16 and the impact of MUR 99M has been credited to profit or loss.
uses reasonable and supportable forecasts of future economic conditions including experienced judgement
to estimate the amount of an expected impairment loss. IFRS 9 introduces the use of macroeconomic factors In addition, the Group has also adopted the following standards which have been assessed as having no financial
which include, but is not limited to, unemployment, interest rates, gross domestic product, inflation and impact or disclosure as at 30 June 2021:
commercial property prices, and requires an evaluation of both the current and forecast direction of the
economic cycle. Incorporating forward-looking information increases the level of judgement as to how changes Amendments to IFRS 3 Definition of a Business
in these macroeconomic factors will affect ECL. The methodology and assumptions including any forecasts of
future economic conditions are reviewed regularly. The amendment to IFRS 3 Business Combinations clarifies that to be considered a business, an integrated
set of activities and assets must include, at a minimum, an input and a substantive process that, together,
If, in a subsequent period, credit quality improves and reverses any previously assessed significant increase in credit significantly contribute to the ability to create output and clarifies that a business can exist without including all
risk since origination, then the provision for doubtful debts reverts from lifetime ECL to 12-months ECL. In the the inputs and processes needed to create outputs. Furthermore, it introduces an optional concentration test that
case of debt instruments measured at FVOCI, the measurement of ECL is based on the three-stage approach as allows a simplified assessment of whether an acquired set of activities and assets is not a business.
applied to financial assets at amortised cost. The Bank recognises the provision charge in profit and loss, with the
corresponding amount recognised in other comprehensive income, with no reduction in the carrying amount of These amendments had no material impact on the financial statements of the Group.
the asset in the statement of financial position. Further details have been disclosed in note 45.
184 185


2.3 Application of new and revised International Financial 2.3 Application of new and revised International Financial
Reporting Standards (Cont’d) Reporting Standards (Cont’d)
Amendments to IAS 1 and IAS 8 Definition of Material Amendment to IFRS 16, ‘Leases’ – COVID-19 related rent concessions extension of the practical expedient
(effective for periods beginning on or after 1 April 2021)
The IASB refined its definition of material to make it easier to understand. It is now aligned across IFRS Standards
and the Conceptual Framework. The changes in Definition of Material (Amendments to IAS 1 and IAS 8) all relate to On 31 March 2021, the IASB published an additional amendment to extend the date of the practical expedient
a revised definition of ‘material’ which is quoted below from the final amendments. under IFRS 16 in relation to COVID-19 related rent concessions from 30 June 2021 to 30 June 2022. Lessees can
elect to account for such rent concessions in the same way as they would if they were not lease modifications.
“Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions In many cases, this will result in accounting for the concession as variable lease payments in the period(s) in which
that the primary users of general-purpose financial statements make on the basis of those financial statements, the event or condition that triggers the reduced payment occurs. The Group will adopt this amendment as from 01
which provide financial information about a specific reporting entity.” July 2021. This is not expected to have a material impact on the Financial Statements of the Group.
The Board has also removed the definition of material omissions or misstatements from IAS 8 Accounting Policies, Interest Rate Benchmark Reform – Phase 2 (effective for periods beginning on or after 1 January 2021)
Changes in Accounting Estimates and Errors.
Benchmark interest rates such as the London Inter-bank Offered Rates (LIBOR) and other interbank offered rates
These amendments had no material impact on the financial statements of the Group. have been prioritised for reform and replacement with Risk Free Rates (RFR) by global regulators. Reform of LIBOR
Amendments to References to the Conceptual Framework in IFRS Standards rates is expected to be largely completed by the end of 2021.
The IASB decided to revise the Conceptual Framework because certain important issues were not covered, The amendments introduce a practical expedient for modifications required by the reform, clarify that hedge
and certain guidance was unclear or out of date. The revised Conceptual Framework, issued by the IASB in accounting is not discontinued solely because of the inter-bank offered rate (IBOR) reform, and introduce
March 2018, includes: disclosures that allow users to understand the nature and extent of risks arising from the IBOR reform to which
the entity is exposed to and how the entity manages those risks as well as the entity’s progress in transitioning
• A new chapter on measurement; from IBORs to alternative benchmark rates, and how the entity is managing this transition. The amendments are
effective for annual reporting periods beginning on or after 1 January 2021. The directors are yet to assess the
• Guidance on reporting financial performance; future impact of this reform on the financial statements, given that the banking sector of Mauritius is still in the
early implementation phase of the IBOR reform, and it is not yet possible for management to put a plan in place as
• Improved definitions of an asset and a liability, and guidance supporting these definitions; and of date.
• Clarifications in important areas, such as the roles of stewardship, prudence, and measurement uncertainty in The table below provides a summary of the expected exposure of Group to the IBOR reform as at 30 June 2021:
financial reporting.
The IASB also updated references to the Conceptual Framework in IFRS Standards by issuing Amendments to
References to the Conceptual Framework in the IFRS Standards. This was done to support transition to the revised
Conceptual Framework for companies that develop accounting policies using the Conceptual Framework when
no IFRS Standard applies to a particular transaction.
These amendments had no material impact on the financial statements of the Group.
New and revised standards and interpretations issued but not yet effective
The new and amended standards and interpretations that are issued, but not yet effective up to the date of
issuance of the Group’s financial statements are listed below. The Group intends to adopt these new and amended
standards and interpretations when they become mandatorily effective.
186 187

2. BASIS OF ACCOUNTING (Cont’d) 3. SEGMENT INFORMATION (Cont’d)

2.3 Application of new and revised International Financial Reporting Hotels & Financial CIEL And Eliminations/
Standards (Cont’d) THE GROUP Textile Property Agro Resorts Services Healthcare others Unallocated Total
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Interest Rate Benchmark Reform – Phase 2 (effective for periods beginning on or after 1
January 2021) (Cont’d) Year ended
30 June 2021
Non-derivative assets and liabilities exposed to LIBOR: Total revenue 10,444,465 103,069 6,000 527,901 3,782,304 2,994,560 564,503 (554,175) 17,868,627
THE GROUP Earnings before

interest, tax,
MUR’000 depreciation,
amortisation,
Financial assets - Amortised cost
impairments,
- Cash and short-term deposits – USD LIBOR 121,883 reorganisation
costs and fair value
Financial liabilities - Amortised cost gain on investment
Borrowings properties 1,320,993 1,825 2,164 (553,771) 1,348,725 583,813 331,927 (338,236) 2,697,440
- Euro LIBOR (3,169,983) Depreciation and
amortisation (303,193) (12,149) - (560,809) (246,397) (174,486) (4,806) 1,005 (1,300,835)
- GBP LIBOR (343,471)
Earnings before
- USD LIBOR (2,542,107) interest, tax,
Total assets and liabilities exposed to LIBOR (5,933,728) impairments,
reorganisation
costs and fair value
Property, plant, and equipment – proceeds before intended use (amendments to IAS 16) gain on investment
properties 1,017,800 (10,324) 2,164 (1,114,580) 1,102,328 409,327 327,121 (337,231) 1,396,605
The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds Impairment of non-
from selling items produced while bringing that asset to the location and condition necessary for it to be capable financial assets and
of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling reorganisation costs (135,683) - - (40,277) - (27,257) - - (203,217)
such items, and the cost of producing those items, in profit or loss. The amendments are effective for annual
reporting periods beginning on or after 1 January 2022. The amendments are not expected to have a material Impairment of
financial assets - (4,183) - (18,237) (316,760) (30,682) (2,767) - (372,629)
impact on the Group’s financial statements.
Fair value gain
3. SEGMENT INFORMATION on investment
properties - 942,110 - - 17,528 - - - 959,638
The reportable segments are strategic business units that offer different products and services. They are managed Finance cost -
(139,410) (10,948) (883,548) (34,061) (94,761) (138,853) (1,301,581)
separately because each business unit requires different strategies. During the financial year ended 30 June 2021,
the subsidiary of Agro and Property Segment has received a letter of intent from the Economic Development Finance income 13,985 42 - 8,062 810 3,787 - - 26,686
Board for the development of a Smart City. This has led to a restructuring whereby the Directors of the Group Share of result
determined that it would be more suitable to have a separate reportable segment for the purpose of the project. of associates and
The Agro and Property segment was thus divided into two separate distinct reportable segment; Agro segment joint ventures - (157) 241,895 (75,953) 25,988 17,653 16,843 41,035 267,304
and Property segment. The Group has six reportable segments:
Profit before
• Textile derives income mainly from the sale of knitwear, woven and fine knits products. income tax 756,692 916,540 244,059 (2,124,533) 795,833 278,067 202,344 (296,196) 772,806
Income tax (103,203) (3,631) - 224,637 (187,560) (6,545) (3,246) - (79,548)
• Agro earns income mainly from sugar production.
• Property derives income mainly land and property development.
• Hotels and Resorts derives income through the ownership and management of portfolio of hotels.
• Financial services derive income mainly from banking, fiduciary products and portfolio management.
• Healthcare derives income through the running of healthcare facilities.
• CIEL - Holding Company derives income through dividend derived from its investments.
The accounting policies of the operating segments are the same as those described in the summary of significant
accounting policies. The Group evaluates performance on basis of Profit & Loss from operations.
188 189

3 SEGMENT INFORMATION (Cont’d) 3 SEGMENT INFORMATION (Cont’d)
Hotels & Financial CIEL And Eliminations/ Agro & Hotels & Financial CIEL Eliminations/
THE GROUP (Cont’d) Textile Property Agro Resorts Services Healthcare others Unallocated Total THE GROUP Textile Property Resorts Services Healthcare And others* Unallocated Total
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Year ended Year ended 30 June 2020
30 June 2021 (as restated)
Profit from continuing Total revenue 10,389,990 112,591 4,634,869 3,462,327 2,376,807 514,145 (535,109) 20,955,620
operations 653,489 912,909 244,059 (1,899,896) 608,273 271,522 199,098 (296,196) 693,258
Earnings before interest,
Loss from tax, depreciation,
discontinued amortisation,
operations (26,930) - - (244,927) - 24,476 - - (247,381) impairments,
reorganisation costs
Profit for the year 626,559 912,909 244,059 (2,144,823) 608,273 295,998 199,098 (296,196) 445,877
and fair value gain on
Assets excluding investment property 548,037 29,594 922,887 1,288,617 338,110 293,856 (368,407) 3,052,694
associates &
Depreciation
joint ventures 9,214,135 2,826,152 36,051 15,592,812 38,351,350 3,395,359 16,202,177 (7,455,470) 78,162,566 and amortisation (309,860) (15,309) (629,337) (203,498) (156,835) (4,440) (21,954) (1,341,233)
Joint ventures - - 188 49,277 1,935,237 - 1,445,643 (1,451,066) 1,979,279 Earnings before interest,
Associates - - 1,371,537 392,645 23,329 - 1,965,477 231,339 3,984,327 tax, depreciation,
impairments and
Segment assets 9,214,135 2,826,152 1,407,776 16,034,734 40,309,916 3,395,359 19,613,297 (8,675,197) 84,126,172
reorganisation costs 238,177 14,285 293,550 1,085,119 181,275 289,416 (390,361) 1,711,461
Segment liabilities 7,777,498 366,084 29,575 13,089,313 35,359,372 2,502,422 3,741,713 (924,941) 61,941,036
Impairment of financial,
non-financial assets and
reorganisation costs (360,201) - (150,199) - (128,058) - - (638,458)
CIEL and Others consist of CIEL Limited, CIEL Corporate Services, Azur Financial Services, EM Insurance Brokers
*
Limited and Rockwood Textile. Impairment of

financial assets (266,587) - (76,147) (311,011) (75,852) - (10,340) (739,937)
Fair value gain on
Investment Property - 154,236 - 6,061 - - - 160,297
Finance cost (189,946) (10,609) (993,875) (30,972) (122,986) (138,313) - (1,486,701)
Finance income 17,153 829 21,250 855 5,719 1,649 - 47,455
Share of result of
associates and joint
ventures net of tax - (24,308) (275) (63,915) 27,602 17,282 (7,920) (51,534)
Impairment of associates - (1,700) (107,044) - - - - (108,744)
Profit before income tax (561,404) 132,733 (1,012,740) 686,137 (112,300) 170,034 (408,621) (1,106,161)
Income tax 5,056 (1,605) (27,511) (185,246) 21,170 (937) - (189,073)
190 191

3 SEGMENT INFORMATION (Cont’d) 4. REVENUE

The Group
Agro & Hotels & Financial CIEL and Eliminations/
THE GROUP (Con’td) Textile Property Resorts Services Healthcare others* Unallocated Total Sale of goods
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 Sales of goods are recognised when control of the products has been transferred, being when the products are
Year ended 30 June 2020 delivered to the customer. A receivable is recognised when the goods are delivered as this is the point in time that
(as restated) the consideration is unconditional because only passage of time is required before the payment is due.
Loss for the year - Sales of goods comprise the sale of knits, knitwear and woven textile garments.
Continuing operations (556,348) 131,128 (1,040,251) 500,891 (91,130) 169,097 (408,621) (1,295,234)
Sale of services
Loss for the year -
Discontinued operations (99,604) - (778,061) - (5,245) - - (882,910) Services provided by the group comprise operation, management and rental of properties, tourism, hospitality and
(655,952) 131,128 (1,818,312) 500,891 (96,375) 169,097 (408,621) (2,178,144) leisure activities, medical services, and banking and financial services.
Assets excluding Revenue from providing services is recognised in the accounting period in which the services are rendered.
associates & Revenue is recognised when control of the services is transferred to the customer at an amount that reflects the
joint ventures 10,971,455 3,337,794 20,656,382 32,602,096 3,689,834 11,225,005 (11,497,731) 70,984,835 condition to which the company expects to be entitled in exchange for those services. Income from the rendering
Joint ventures - 345 51,103 1,912,766 - 1,436,487 (1,427,547) 1,973,154 of services include the following:
Associates - 1,114,725 495,991 91,986 173,572 1,134,252 977,215 3,987,741 Type Timing of recognition
Segment assets 10,971,455 4,452,864 21,203,476 34,606,848 3,863,406 13,795,744 (11,948,063) 76,945,730 Dividend income When the shareholder’s right to receive payment is established.
Segment liabilities 7,303,520 386,787 15,096,278 30,775,912 2,517,477 3,791,764 (1,539,766) 58,331,972
Interest income Interest income is calculated by applying the effective interest rate to the gross carrying
amount of a financial asset except for financial assets that subsequently become credit
Revenues from impaired. For credit-impaired financial assets, the effective interest rate is applied to the
THE GROUP External Customers Non-current Assets net carrying amount of the financial asset (after deduction of the loss allowance).
Restated Restated
Management fees and other income When control of the services is transferred to the customer at an amount that reflects
2021 2020 2021 2020 the condition to which the company expects to be entitled in exchange for those services.
MUR’000 MUR’000 MUR’000 MUR’000 The fees are determined through management agreements and are generally based on an
agreed percentage of the Net asset Value and Profit after tax of the company. The Group
Geographical information determines and calculates the fees and allocates them on a quarterly basis, through the
Mauritius 11,212,753 14,729,591 32,530,885 31,959,516 fees are earned over time.
Madagascar 3,525,985 3,215,794 12,727,230 10,084,420 Commission Commission received from trading services is allocated to each trading activity as and when
it is due as per the agreement. The commission income is recognised at a point in time when
Asia 2,065,208 2,166,946 1,289,224 1,480,146
the service is rendered.
Maldives - - 340,975 2,334,116
Information and communication When control of the services is transferred to the customer at an amount that reflects
South Africa 589,100 124,718 248,377 235,306 technology income the condition to which the company expects to be entitled in exchange for those services.
Others 475,581 718,571 560,051 524,119 For fixed-price contracts, revenue is recognised based on the actual service provided to
the end of reporting period as a proportion to the total services to be provided because
17,868,627 20,955,620 47,696,742 46,617,623
the customer receives and uses the benefits simultaneously. This is determined based on
the actual labour hours spent relative to the total expected labour hours. If the contract
Revenues from external customers are presented based on the respective subsidiaries’ country of domicile. includes an hourly fee, revenue is recognised in the amount to which the customer is entitled
to be invoiced. Customers are invoiced on a monthly basis and consideration is payable
when invoiced.
Income from foreign On a settlement basis.

exchange dealings
Rental Income Rental income from investment properties is recognised in profit or loss on an accrual
basis in accordance with the substance of the relevant agreement. Revenue from service
charge is recognised in the accounting period in which control of the services are passed to
the customer, which is when the service is rendered.
192 193

4 REVENUE (Cont’d) 5. EARNINGS BEFORE INTEREST, TAX, DEPRECIATION, AMORTISATION, IMPAIRMENTS,

REORGANISATION COSTS AND FAIR VALUE GAIN ON INVESTMENT PROPERTY
The Company
The Company’s main source of revenue is dividend income generated from its subsidiaries. Dividend is recognised (a) THE GROUP THE COMPANY
when the shareholder’s right to receive payment is established.
Restated
THE GROUP THE COMPANY 2021 2020 2021 2020
Restated MUR’000 MUR’000 MUR’000 MUR’000
2021 2020 2021 2020
MUR’000 MUR’000 MUR’000 MUR’000 Revenue 17,868,627 20,955,620 367,508 381,044
Revenue Profit on disposal of property, plant and equipment 8,994 3,280 - -
- Banking Profit on disposal of held for sale assets 31,812 - - -
- Interest Income 2,204,788 2,005,627 - - Profit on disposal of associated companies (Note 14(f)) 26,678 - -
Revenue from contracts with customers: Other operating income 231,163 - - -
- Textile 10,444,465 10,389,990 - - Government wage assistance scheme 618,725 231,196 - -
- Hotel 527,901 4,634,869 - - Insurance claim receipts - 236,410 - -
- Banking - - Net foreign exchange differences 130,813 (21,019) 319 1,346
- Fees and commission income 724,308 672,560 - - Cost of goods sold (i) (7,214,615) (6,659,940) - -
- Profit arising on dealings 578,833 529,317 - - Interest expense – Banking segment (1,103,490) (889,260) - -
- Other income 5,508 5,226 - - Employee benefit expenses (Note 7(a)) (5,146,336) (6,911,654) - -
- Healthcare 2,986,161 2,361,161 - - Management fees and services (27,493) (66,138) (59,153) (39,862)
- Agro & Property 21,493 29,138 - - Professional, legal and consultancy fees (121,677) (65,174) (13,448) (9,168)
Dividend income Rental and leases (76,821) (230,190) - -
- Listed on SEM - 1 - 1 Leasehold rights written off - (45,529) -
- Listed on DEM - 1 53,792 1 Logistics and utilities (1,137,677) (1,286,712) - -
- Unquoted 2,593 1,577 312,124 380,142 Office expenses (244,666) (284,030) (9,882) (9,407)
Others: Transport expenses (80,500) (132,729) - -
Management and service fees 301,352 258,639 - - Marketing, communication and publication expenses (209,469) (536,861) (6,878) (11,818)
Rental income 36,841 36,045 - - Repairs and maintenance (267,944) (368,143) - -
Other income 34,384 31,469 1,592 900 Social and events (39,791) (33,341) - -
15,663,839 18,949,993 367,508 381,044 Loss allowance on receivables and other
Total revenue 17,868,627 20,955,620 367,508 381,044 financial assets - (98,973) - -
Timing of revenue recognition Share based compensation expense - 798 - 798
Goods transferred at a point in time 14,768,763 11,783,639 367,508 381,044 Fair value adjustment on investment property (20,106) 20,106 - -
Services transferred over time 895,076 7,166,354 - - Other expenses (ii) (528,787) (765,023) (8,798) (7,179)
15,663,839 18,949,993 367,508 381,044 2,697,440 3,052,694 269,668 305,754
194 195

5. EARNINGS BEFORE INTEREST, TAX, DEPRECIATION, AMORTISATION, 6. FINANCE COSTS AND FINANCE INCOME
IMPAIRMENTS, REORGANISATION COSTS AND FAIR VALUE GAIN ON
THE GROUP THE COMPANY
INVESTMENT PROPERTY (Cont’d)
Restated
THE GROUP 2021 2020 2021 2020
2021 2020 MUR’000 MUR’000 MUR’000 MUR’000
MUR’000 MUR’000 Interest expense on:
(i) Cost of goods sold Bank overdrafts (44,745) (60,800) (3,952) (1,523)
Raw materials and consumables 6,167,170 5,204,181 Loans repayable by instalments (231,933) (201,553) - -
Direct cost, Utilities and Others 1,047,445 1,455,759 Bills discounted (9,275) (15,896) - -
7,214,615 6,659,940 Debentures (243,994) (311,571) - -
(ii) Other expenses B shares dividend (4,000) (6,617) - -
Information and telecommunication expenses (51,555) (80,183) Loans at call (176,646) (87,621) (2,231) (1,912)
Insurance (45,555) (67,475) Lease liabilities (Note 9(b)) (220,249) (283,275) - -
General and miscellaneous costs (22,083) (184,082) Fixed rate secured notes (134,245) (150,439) (133,951) (140,356)
Professional fees and other services (127,217) (119,353) Ineffective portion of cash flow hedge (229,879) (368,929) - -
Fees and commission (36,368) (38,109) Finance costs (1,294,966) (1,486,701) (140,134) (143,791)
Other cost (246,009) (275,821) Interest income on:
(528,787) (765,023) Bank balances 20,071 47,455 - 11
Others - - 576 3,818
Finance income 20,071 47,455 576 3,829
Net finance costs (1,274,895) (1,439,246) (139,558) (139,962)
7. (a) EMPLOYEE BENEFIT EXPENSE
THE GROUP
2021 2020
MUR’000 MUR’000
Wages and salaries 4,396,291 5,930,465
Social security costs 370,167 355,096
Pension costs - defined contribution plans (Note 31(b)) 65,766 80,896
Pension costs - defined benefit plans (Note 31(a)) 74,609 68,187
Severance 825 33,161
Other post-retirement benefits 14,318 19,381
Others 224,360 424,468
Employee benefit expenses (Note 5(a)) 5,146,336 6,911,654
Reorganisation costs (Note 7(b)) 154,455 107,951
Total 5,300,791 7,019,605
(*) Reorganisation costs comprise termination benefits on voluntary early retirement of employees.
196 197

7. (b)(i) IMPAIRMENT OF NON-FINANCIAL ASSETS AND REORGANISATION COSTS 7. (d) SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
THE GROUP THE GROUP
2021 2020 2021 2020 2021 2020
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Restated Share of profit Other Comprehensive income
Goodwill 11 - 128,058 Joint ventures 13 (9,588) (67,047) (34,287) 21,354
Non-financial assets 18, 9(a), 21 48,762 402,449 Associates 14 276,892 15,513 72,845 17,771
48,762 530,507 267,304 (51,534) 38,558 39,125
Reorganisation costs (*) 154,455 107,951
203,217 638,458 8. EARNINGS AND NET ASSET VALUE PER SHARE
7. (b)(ii) IMPAIRMENT OF FINANCIAL ASSETS
Restated
THE GROUP 2021 2020 2021 2020
2021 2021 2020 2020 Basic and diluted earnings per share
MUR’000 MUR’000 MUR’000 MUR’000 Profit attributable to owners MUR’000 617,391 (1,679,713) 129,703 165,186
Bad debts written off on trade and other receivables - 86,484 - 238,700 Weighted average number of ordinary shares 1,686,967 1,682,664 1,686,967 1,682,664
IFRS 9 Provisions: Earnings/(loss) per share MUR’000 0.37 (1.00) 0.08 0.10
Investment in securities (Note 24) 1,413 - 288 - Profit attributable to owners from
Loans to banks (Note 23) (7) - (47) - continuing operations MUR’000 755,335 (1,187,794) 129,703 165,186
- Loans and advances to customers (Note 22) 220,535 - 303,827 - Weighted average number of ordinary shares 1,686,967 1,682,664 1,686,967 1,682,664
- Trade other receivables (Note 19(f)) 65,313 - 217,583 - Basic and diluted earnings per share from
continuing operations MUR’000 0.45 (0.70) 0.08 0.10
- Others (1,109) 286,145 (20,414) 501,237
Net asset value per share
Total 372,629 739,937
Owners’ Interest MUR’000 14,931,409 11,282,955 15,664,671 10,120,412
Number of shares in issue 1,687,445 1,686,751 1,687,445 1,686,751
7. (c) DEPRECIATION AND AMORTISATION
Net asset value per share MUR’000 8.85 6.69 9.28 6.00
THE GROUP
2021 2020
Note MUR’000 MUR’000
Depreciation of property plant and equipment on continuing operations 1 1,031,656 1,028,584
Depreciation of right of use assets 9(b) 176,813 179,748
Amortisation of intangible assets 11 92,366 96,495
Amortisation of leasehold rights 16 - 36,406
1,300,835 1,341,233
Note 1: Depreciation property plant and equipment analysed as follows:
Continuing operations 7(c) 1,031,656 1,028,584
Discontinued operations 47(d) 98,526 170,283
9(a) 1,130,182 1,198,867
198 199

9. (a) PROPERTY, PLANT AND EQUIPMENT 9. (a) PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Accounting policies
Deer
Property, plant and equipment, except for freehold land and buildings and site improvements are stated at cost Furniture Office farming
less accumulated depreciation and/or accumulated impairment losses, if any. Freehold land is stated at revalued Land and Assets under Plant and Motor fittings & & Other buildings &
amounts and buildings are stated at revalued amounts less subsequent accumulated depreciation and subsequent (a) The Group building construction machinery vehicles equipment equipment equipment Total
accumulated impairment losses. MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially COST OR VALUATION
from that which would be determined using fair values at each financial year end. It is the Group’s policy to revalue
At 01 July 2020 - Restated 23,433,345 229,081 6,399,570 394,292 4,102,075 752,366 58,948 35,369,677
its freehold land and buildings at least once every three years. The basis used is market value derived using the
Sales Comparison Approach and the Depreciated Replacement Cost Approach and independent valuers are used Revaluation surplus 1,114,447 - - - - - - 1,114,447
for such exercises. Any revaluation surplus is credited to other comprehensive income, except to the extent that it
Additions 210,935 125,401 81,324 26,029 283,564 50,909 10,584 788,746
reverses a revaluation deficit for the same asset previously recognised in profit or loss, in which case the surplus is
credited to profit or loss to the extent of the deficit previously charged. A decrease in an asset’s carrying amount Transfer to intangible
arising on revaluation is charged to profit or loss to the extent that it exceeds the balance, if any, held in the property assets (Note 11) - (1,647) - - - - - (1,647)
revaluation reserve relating to a previous revaluation of that asset. Transfer to held for sale
Depreciation on revalued buildings is charged to profit or loss. On the subsequent disposal or retirement of a (Note 21) (448,687) - (1,097,267) (8,329) (11,314) (18,210) - (1,583,807)
revalued property, the attributable revaluation surplus remaining in the property revaluation reserve is transferred Other transfers 13,044 (54,695) 30,541 2,975 8,110 25 - -
directly to the retained earnings.
Reclassification 55,978 (60,866) 1,690 (3,391) 6,554 35 - -
Properties in the course of construction are carried at cost, less any recognised impairment loss. Cost includes Write offs (6,647) (33,191) (25,391) (182) (30,649) (14,690) - (110,750)
professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting
policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are Translation adjustment 228,077 6,863 98,662 9,616 44,893 27,201 - 415,312
ready for their intended use. Freehold land and capital work in progress are not depreciated. Disposals (2,771,641) (484) (361,310) (61,533) (291,296) (24,119) - (3,510,383)
It is the Group’s policy to maintain its buildings in a continued state of sound repair, such that their value is not At 30 June 2021 21,828,851 210,462 5,127,819 359,477 4,111,937 773,517 69,532 32,481,595
significantly diminished by the passage of time or usage. Accordingly, in estimating the residual values, the Group DEPRECIATION
has assessed the value of the building at the end of their useful life based on today’s rate and this exercise is done
by an independent qualified valuer. Therefore, buildings are depreciated on a straight-line basis to their estimated At 01 July 2020 - Restated 2,333,160 4,803 4,219,025 263,916 2,941,079 567,241 27,266 10,356,490
residual values over their estimated useful lives. Revaluation surplus (61,354) - - - - - - (61,354)
Leasehold land improvements are depreciated over the shorter of their useful life and the lease period. On other Charge for the year 429,124 - 307,450 47,715 253,138 89,034 3,721 1,130,182
property, plant and equipment, depreciation is calculated on a straight-line basis to write off their depreciable
Transfers to held for sale
amounts (cost less residual value) over their estimated useful lives.
(Note 21) (8,021) - (785,176) (7,878) (8,501) (13,469) - (823,045)
The annual rates are as follows: Impairment charges
through P&L (Note 47) 392,049 - - - - - - 392,049
Rate per annum
Write offs (*) (1,647) - (25,391) (182) (30,485) (14,502) - (72,207)
Buildings 2% to 10%
Translation adjustment 61,203 - 51,470 7,365 31,135 20,614 - 171,787
Buildings on leasehold land 2% to 12.5%
Disposal adjustment (1,326,537) - (253,724) (47,244) (181,325) (23,087) - (1,831,917)
Plant, equipment and machinery 4% to 20%
At 30 June 2021 1,817,977 4,803 3,513,654 263,692 3,005,041 625,831 30,987 9,261,985
Motor vehicles and boats 10% to 35%
NET BOOK VALUES
Furniture, fittings and equipment 5% to 50%
At 30 June 2021 20,010,874 205,659 1,614,165 95,785 1,106,896 147,686 38,545 23,219,610
Farming buildings and equipment 2.5% to 10%
Office, computer and other equipment 10% to 33% • The amounts written off relate principally to fully depreciated assets which are not in use anymore. The write
off of the asset under construction relates to the write off of costs incurred on a factory in India, for which
construction will not continue.
The gain or loss arising on the disposal or retirement of an item (or part of an item) of property, plant and equipment
is determined as the difference between the disposal proceeds and the carrying amount of the item (or part of
the item, as applicable) and is recognised in profit or loss.
Work in progress is valued at the cost of the project. Costs include an appropriate portion of fixed and variable
overhead expenses.
200 201

9. (a) PROPERTY, PLANT AND EQUIPMENT (Cont’d) 9. (a) PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Deer (c) Fair value of land and buildings
Land and Furniture Office farming
The Group carries its land and buildings at fair value. The revaluation surplus net of applicable deferred income
building at Assets under Plant and Motor fittings & & Other buildings &
taxes was credited to other comprehensive income and shown in ‘revaluation surplus’ in the statement of changes
(b) The Group fair value construction machinery vehicles equipment equipment equipment Total in equity.
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Details of the Group’s land and buildings measured at fair value and information about the fair value hierarchy as at
COST OR VALUATION 30 June 2021 are as follows:
At 1 July 2019 as
previously stated 22,369,095 338,479 6,106,113 376,612 3,726,748 662,889 53,446 33,633,382 THE GROUP
Effect of prior year Level 2 Level 3
adjustments (Note 46) (228,647) - - - - - - (228,647)
2021 2020 2021 2020
As restated 22,140,448 338,479 6,106,113 376,612 3,726,748 662,889 53,446 33,404,735
MUR’000 MUR’000 MUR’000 MUR’000
Revaluation surplus 567,600 - - - - - - 567,600
Land and Building 3,403,100 3,078,720 16,940,967 17,938,145
Additions 308,538 136,981 140,367 37,096 260,606 76,394 5,502 965,484
Balance as at 30 June 3,403,100 3,078,720 16,940,967 17,938,145
Transfer to intangible
assets (Note 11) - (2,024) - - (356) - - (2,380)
The Group’s main land and buildings were last revalued on 30 June 2021.
Transfer to right-of-use
assets (Note 9(b)) (176,967) - - (13,834) - - - (190,801) Hotels and resorts segment
(a) The hotels and resorts segment’s policy is to revalue its freehold land and buildings at least every three years
Transfer from leasehold and the preceding revaluation was conducted on 30 June 2020. However, following the unprecedented impact
rights and prepayments of COVID-19 on the economy with significant volatile changes being observed in the fair values of certain
(Note 17) 42,004 - - - - - - 42,004 items of property, plant and equipment, a revaluation exercise was again carried out during this financial year
30 June 2021. The Chartered Valuers, Elevante Property Services Ltd revalued the freehold land and buildings
Transfers 100,317 (252,698) 119,782 3,301 61,832 726 - 33,260
and a revaluation adjustment was accounted for those properties where there is no indication of impairment
Write offs (1,162) - (22,136) (2,781) (8,521) (12,299) - (46,899) of the cash generating units.
Translation adjustment 452,567 8,343 92,981 12,215 62,974 25,451 - 654,531 Freehold land was valued taking into consideration comparable sales evidence. Sales prices of comparable
Disposals - - (37,537) (18,317) (1,208) (795) - (57,857) land in close proximity were adjusted for differences in key attributes such as property size. The most
significant input into this valuation approach is the price per square metre. The basis of valuation in estimating
At 30 June 2020 23,433,345 229,081 6,399,570 394,292 4,102,075 752,366 58,948 35,369,677 the market value has been undertaken in accordance with the principles set out by the International Valuation
DEPRECIATION Standards Committee as per the International Valuation Application 1 (IVA 1) which deals with Valuation for
Financial Reporting and which is to be used in the context of International Financial Reporting Standards
At 1 July 2019 as (IFRSs) published by the International Accounting Standards Board (IASB).
previously stated 1,791,992 4,803 3,864,177 224,470 2,567,648 471,201 30,253 8,954,544
Effect of prior year The buildings, structures and site improvement have been valued on a depreciated replacement cost basis
adjustments (Note 46) (140,909) - - (3,851) - - (5,791) (150,551) taking into consideration their replacement cost, with adjustments being made for age and condition.
This method of valuation is based on the theory of substitution and is used in situations where it is difficult to
As restated 1,651,083 4,803 3,864,177 220,619 2,567,648 471,201 24,462 8,803,993 estimate inputs to be used to calculate value due to volatile market factors. The most significant input into
Revaluation surplus (508,047) - - - - - - (508,047) this method of valuation is the replacement cost per square metre. A revaluation exercise based on income
capitalisation approach was also performed in order to benchmark against the depreciation replacement
Charge for the year 447,518 - 320,601 56,266 280,594 91,084 2,804 1,198,867 cost approach.
Transfers - - - - 864 366 - 1,230
(b) Management assessed the recoverable amount of assets for which indicators of impairment exists as at 30
Transfer to right-of-use June 2021 and details of assessment have been disclosed.
assets (Note 9(b)) (2,496) - - (2,190) - - - (4,686)
(c) Hierarchy level
Impairment charges
through P&L (Note 7(c), 47) 632,917 - 45,788 - 56,674 - - 735,379 Details of the Group’s freehold land and building and information about the fair value hierarchy are as follows:
Acquisition through
business combination - - - - 36 (86) - (50) Level 2 Level 3
Write offs (1,162) - (22,136) (2,781) (8,521) (12,299) - (46,899) MUR’000 MUR’000
Translation adjustment 113,347 - 44,890 7,976 31,299 17,544 - 215,056 Land and Building 3,293,300 -
Disposal adjustment - - (34,295) (15,974) 12,485 (569) - (38,353) Leasehold land improvement and buildings - 10,534,179
At 30 June 2020 Site Improvements - 591,231
- Restated 2,333,160 4,803 4,219,025 263,916 2,941,079 567,241 27,266 10,356,490 Balance as at 30 June 2021 3,293,300 11,125,410
NET BOOK VALUES
At 30 June 2020 There were no transfers between Level 1 and Level 2 during the year.
- Restated 21,100,185 224,278 2,180,545 130,376 1,160,996 185,125 31,682 25,013,187
202 203

9. (a) PROPERTY, PLANT AND EQUIPMENT (Cont’d) 9. (a) PROPERTY, PLANT AND EQUIPMENT (Cont’d)

(c) Fair value of land and buildings (Cont’d) (c) Fair value of land and buildings (Cont’d)
Hotel segment (Cont’d) Property Segment (Cont’d)
(d) Bank borrowings are secured on fixed and floating charges on property, plant and equipment of the Group and Range of Range of
the Company. Fair value Fair value price per unobservable
Description at 2021 at 2020 hectare 2021 2020 inputs 2021 2020 Sensitivity
(e) The following summarises the quantitative information about the significant unobservable inputs used in
recurring level 3 fair value measurements: MUR’000 MUR’000 MUR’000 MUR’000 % %
8,292 – Capitalisation The higher the
Valuation technique -Earmarked land 194,780 - 2,200,000 - rate 1% - 9% N/A capitalisation rate and
and key inputs Sensitivity used Effect on fair value
2021 2020
Expected expected vacancy rate,
MUR’000 MUR’000 vacancy rate 0% - 7.5% N/A the lower the fair value
Leasehold land improvement & buildings Depreciated replacement 1% increase in cost The higher the
cost approach of replacing property 105,342 118,886 capitalisation rate and
1% decrease in cost of expected vacancy rate,
replacing property (105,342) (118,886) - Other land 1,027,350 1,106,800 474-14,215 533-14,215 Years purchase 3% - 5% 3% - 5% the lower the fair value
Site improvements Depreciated replacement 1% increase in cost Expected
cost approach of replacing property 5,91 6,271 vacancy rate 5% 5%
1% decrease in cost of The higher the discount
replacing property (5,912) (6,271) rate and terminal yield,
Discount rate 5% 5% the lower the fair value
Terminal yield 3% - 5% 3% - 5%
Property Segment
The higher the rental
(a) The freehold land of Ferney Limited (“FL”) relates to hunting ground, sugar cane fields, land surrounding the growth rate and
factory and fallow land as well as land earmarked for the Ferney Integrated Development Project under a Rental growth terminal yield, the
Smart City Scheme developed through Ferney Development Company Limited (“FDL”). These lands were valued rate 6.70% 6.70% higher the fair value
by CDDS Land Surveyors and Property Valuer, an independent and professionally qualified valuer, in 2021.
The valuation of land was derived using the sales comparison approach by reference to land transactions in
the vicinity. As part of the valuation methodology, all costs and possible sale realisation have been assumed as at 30 June 2021.
(b) Ferney Integrated Development Project: On 17 November 2020, the Economic Development Board issued a Financial services segment
letter of intent to FDL pursuant to Regulation 9(3) of the SCS Regulations. The letter of intent is issued on
the basis that FDL will develop a Smart City Project based on five pillars - Sustainability, Agri-Hub, Nature and At 30 June 2021, an independent valuation was performed by an independent qualified valuer Cabinet
Razafindratandra of the land and buildings located at the headquarters in Madagascar. The properties were valued
Science Economy, Eco-Tourism, of an extent of 500 Hectares under the Smart City Scheme (the “Scheme”).
at MUR 854M (2020: MUR 771M). The external valuations have been performed using the sales comparison approach
(c) The land (the “earmarked land”) that has been earmarked for the purposes of carrying out the smart city and depreciated replacement cost basis.
development is currently owned by FL: the extent of the earmarked land is 500 Hectares so that a change in
the ownership of the earmarked land from FL to FDL is required to enable FDL to develop the earmarked land Valuation inputs and relationships to fair value
in accordance with the Investment Promotion (Smart City Scheme) Regulations 2015. The earmarked land was
Valuation model Replacement Cost
previously valued at MUR0.6M per acre and the objective is to revalue the land based on the Smart City project.
Unobservable inputs Obsolescence Rate/ Unobservable sale price per square meter
(d) Basis of valuation of the earmarked land: The residual method of valuation is to estimate the possible revenue
of the developable land and assuming all Smart City permits are granted, net of all the costs of developing the Range of inputs 6.02% to 53.22% (2020: 15.27% - 76.89%)
entire Smart City, mostly being the cost of construction of the buildings and services, to end up with a value of
bare developable land.
Sensitivity analysis
(e) The earmarked land has been valued at MUR195M giving rise to a fair value increase of MUR115M which is
credited to revaluation reserves in shareholders’ equity. This represents an average estimated price per acre A 5% increase or decrease in the obsolescence rate would lead to a decrease/increase of MUR 27.1M (2020: MUR 26.2M)
is MUR1.5M. in the fair value of land and building.
(f) The land is classified as level 3 on the fair value hierarchy.
The investment properties are classified as level 3 on the fair value hierarchy.
204 205

9. (a) PROPERTY, PLANT AND EQUIPMENT (Cont’d) 9. (b) RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

(c) Fair value of land and buildings (Cont’d) Accounting policies
Healthcare segment Initial Recognition
The revalued land and buildings consist of office and clinic premises. Management determined that these constitute Leases are recognised as a right-of-use asset and corresponding liability at the date of which the leased asset is
one class of assets under IFRS 13 based on the nature, characteristics and risks of the property. available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance
cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining
The C-Care Group performed a valuation of land and building in June 2021. This was carried out by an independent balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful
valuer Noor Dilmohamed & Associates, Certified Practising Valuer, who has the appropriate qualification and life and lease term on a straight-line basis.
experience in the fair value measurement of properties in the relevant location.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the
The land is classified as level 2 and buildings are classified as level 3 on the fair value hierarchy. The main inputs used net present value of the following lease payments:
in the valuation approach ranged as follows:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable; variable
Range of lease payment that are based on an index or a rate, initially measured using the index or rate as at the
unobservable Relationship of commencement date;
Fair value Valuation Unobservable inputs (probability - unobservable
Description at June 30, technique inputs weighted average) inputs to fair value • amounts expected to be payable by the group under residual value guarantees;
2021 2020 • the exercise price of a purchase option if the group is reasonably certain to exercise that option, and
MUR’000 MUR’000 • payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
MUR 4,250 – The higher the price
On Market Price per MUR 5,000 per per square metre, the
Land 178,170 178,170 Comparable square metre square metre higher the fair value
Replacement
cost less MUR 3,000 – The higher the cost
depreciation Cost per square MUR 28,500 per per square metre, the
654,809 558,435 approach metre square metre higher the fair value
Building
832,979 736,605
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value
hierarchy together with a quantitative sensitivity analysis at 30 June 2021 and 2020 are shown below:
Valuation technique(s) and key inputs Sensitivity used Effects on fair value

2021 2020
MUR’000 MUR’000
Land On-market comparable 1% increase in price 1,782 1,782
1% decrease in price (1,782) (1,782)
Replacement cost less
Building depreciation approach 1% increase in price 6,548 5,553
1% decrease in price (6,548) (5,553)
206 207

9. (b) RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Cont’d) 9. (b) RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Cont’d)
Accounting policies (Cont’d) Lease and non-lease component
Initial Recognition (Cont’d) Contracts may contain both lease and non-lease components. The segment allocates the consideration in the
contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of
Lease payments to be made under reasonably certain extension options are also included in the measurement of
real estate for which the segment is a lessee, it has elected not to separate lease and non-lease components and
the liability.
instead account for these as a single lease component.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the group, the lessee’s incremental borrowing rate is used, Payments associated with short-term leases and all leases of low-value assets are recognised on a straight-line
being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value
of similar value to the right-of-use asset in a similar economic environment with similar terms, security and assets comprise IT equipment and small items of office furniture.
conditions. To determine the incremental borrowing rate, the Group, where possible, uses recent third-party
financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions Textile
since the third party financing was received and makes adjustments specific to the lease, e.g. term, country, The textile segment leases various offices, warehouses and factories. Rental contracts are typically made for
currency and security. The incremental borrowing rates range from 5% to 17.24%. fixed periods of 1 to 10 years but may have extension options. The facts and circumstances would include whether
Subsequent measurement renewing the lease of the asset would have commercial value: how the asset could be used by the entity for its
operations and to generate income.
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the
balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line The weighted average incremental borrowing rate stands at 7.35% (2020: 7.35%).
basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged
to be shorter than the lease term. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The lease agreements do not impose any covenants other than the security interests in the leased assets that are
When the Group revises its estimate of the term of any lease (because, for example, it re-assesses the probability
held by the lessor. Leased assets may not be used as security for borrowing purposes.
of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to
reflect the payments to make over the revised term, which are discounted at the same discount rate that applied The short term leases for which the lease rentals have been recognised in profit or loss on a straight-line basis
on lease commencement. The carrying value of lease liabilities is similarly revised when the variable element of comprises mainly the lease of dormitories that house the expatriate workers.
future lease payments dependent on a rate or index is revised. In both cases an equivalent adjustment is made to
the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining Healthcare
(revised) lease term.
The Healthcare Segment leases various buildings and motor vehicles. The contract duration ranges from 6 months
When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the to 50 years. The incremental borrowing rate used is 5.352% (2020 :7.631%) for C-Care for the main lease, being the
nature of the modification: land and building at Wellkin, and between 6% - 17.24% (2020: 6% - 17.22%) for IMG Group.
• if the renegotiation results in one or more additional assets being leased for an amount commensurate with
the standalone price for the additional rights-of-use obtained, the modification is accounted for as a separate In October 2020, further to an amendment in the Finance Act, Healthcare services have been reclassified from
lease in accordance with the above policy. exempt to zero-rated for VAT purposes. Consequently, Healthcare service providers are now eligible to claim input
• in all other cases where the renegotiated increases the scope of the lease (whether that is an extension to the VAT on purchase of goods and services which was not previously the case. As a result, the VAT element on the
lease term, or one or more additional assets being leased), the lease liability is remeasured using the discount monthly rental for the hospital building can now be claimed from the Mauritius Revenue Authority. The monthly
rate applicable on the modification date, with the right-of-use asset being adjusted by the same amount. cost to C-Care has decreased from MUR 5M to MUR 4.3M. This change triggered a lease modification and hence
a reassessment of the discount rate. At the end of the reporting period, all leases were recognised as right of use
• if the renegotiation results in a decrease in the scope of the lease, both the carrying amount of the lease liability except the short term leases of operating equipment.
and right-of-use asset are reduced by the same proportion to reflect the partial of full termination of the lease
with any difference recognised in profit or loss. The lease liability is then further adjusted to ensure its carrying Hotels and Resorts
amount reflects the amount of the renegotiated payments over the renegotiated term, with the modified
lease payments discounted at the rate applicable on the modification date. The right-of-use asset is adjusted Lease liabilities relate to:
by the same amount.
• The right-of-use of property, plant and equipment with an average duration varying between 4 and 5 years
For contracts that both convey a right to the Group to use an identified asset and require services to be provided to and for which the Group has the option to purchase the asset for a nominal amount at the expiry of the lease
the Group by the lessor, the Group has elected to account for the entire contract as a lease, i.e. it does allocate any arrangements; and
amount of the contractual payments to, and account separately for, any services provided by the supplier as part
of the contract. Payments associated with short-term leases and all leases of low-value assets are recognised on • Leases of rooms under the Invest Hotel Scheme which run for a period between 52 and 59 years.
a straight-line basis as an expense in profit or loss. The segment’s leases are secured by the lessors’ title to the leased assets.
Lease term
The incremental borrowing rate on lease liabilities ranged from 5% to 7.05% (2020: 5% to 7.05%).
The lease terms may include options to extend or terminate the lease when it is reasonably certain that the
option will be exercised. In instances where lease agreements contain lease and non-lease components, they are The short term leases under this segment comprises the lease of motor vehicles.
generally accounted for separately. For certain instances where it is impractical to separate the lease from the
Financial Services
non-lease component, the Group will account for them as a single lease component. In determining the lease term,
management considers all the facts and circumstances that can create an economic incentive to exercise an The segment has leases for buildings and motor vehicles. Leases have remaining lease terms between 1 and 7 years,
extension option or not exercise a termination option. Extension options (or periods with termination options) are some of which may include options to extend the leases for up to 3 years, and some of which may include options
only included in the lease term if the lease term is reasonably certain to be extended (or terminated). to terminate the leases within 1 year.
In determining the lease term, management considers all facts and circumstances that create an economic The incremental borrowing rate on lease liabilities ranged from 6.25% to 8.5 % (2020: 6.25% to 8.5%) for the segment.
incentive to exercise an extension option, or not to exercise a termination option. Extension options across the
segment are only included in the lease term if the lease is reasonably certain to be extended. These are used to The short term leases relate to the lease of certain bank branches across Madagascar.
maximise operational flexibility in terms of managing the assets used in the segment’s operations. The factors
influencing the decision to exercise these options include the location of the assets, some being on prime locations
along the coast of the island, and the costs that would be incurred to set up a whole new building to operate in the
event of termination.
208 209

9. (b) RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Cont’d) 9. (b) RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Cont’d)
THE GROUP 2021 2020
Right-of-use assets MUR’000 MUR’000
Restated
Land and Motor
Buildings Vehicles Others Total Lease liabilities:
MUR’000 MUR’000 MUR’000 MUR’000 Current 250,659 232,277
Restated balance as at 1 July 2020 2,992,960 28,950 16,185 3,038,095 Non-current 3,014,504 3,327,056
Additions 258,856 19,403 3,412 281,671 3,265,163 3,559,333
Amortisation (158,980) (13,240) (4,593) (176,813)
Disposals (359,060) (1,665) - (360,725) Lease liabilities have been restated, refer to Note 46.
Translation adjustments 29,013 - - 29,013 2021 2020

Right-of-use assets, 30 June 2021 2,762,789 33,448 15,004 2,811,241 MUR’000 MUR’000
Right-of-use assets, 1 July 2019 - - - - Restated
Impact of IFRS 16 2,694,237 23,559 20,479 2,738,274 The statement of profit or loss shows the following amounts relating to leases:
Restated balance as at 1 July 2019 2,694,237 23,559 20,479 2,738,274 Amortisation of right-of-use assets 176,813 179,748
Additions 2,497 5,592 - 8,089 Interest on lease liabilities 220,249 283,275
Transfer from leasehold rights and land prepayments Expenses relating to leases of low-value assets and short-term leases 76,821 230,190
(Note 16) 235,331 - - 235,331
Lease concessions (99,053) -
Transfer from property, plant and equipment
(Note 9(a)) - Restated 174,471 11,644 - 186,115 Total lease cost 374,830 693,213
Transfer from property, plant and equipment The total cash outflow for leases was as follows:
(Note 9(a)) as previously stated 384,833 11,644 - 396,477
Repayment of principal element of leases 204,389 290,048
Other information:
Effect of prior year adjustment (Note 46) (210,362) - - (210,362)
Weighted Average Remaining Lease Term 4.58 4.56
Amortisation (163,609) (11,845) (4,294) (179,748)
Translation adjustments 50,032 - - 50,032
Right-of-use assets, 30 June 2020, as restated 2,992,959 28,950 16,185 3,038,095
210 211

10. INVESTMENT PROPERTIES 10. INVESTMENT PROPERTIES (Cont’d)

Accounting policies Ferney Limited (Cont’d)
Investment properties, held to earn rentals or for capital appreciation or both and not occupied by the Group are (a) The land (the “earmarked land”) that has been earmarked for the purposes of carrying out the smart city
measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are development is currently owned by FL: the extent of the earmarked land is 500HA so that a change in the
carried at fair value, representing open-market value as determined periodically by the directors subsequent to the ownership of the earmarked land from FL to FDL is required to enable FDL to develop the earmarked land in
valuation carried out by external valuer. Changes in fair values are included in profit or loss. When the use of property accordance with the Investment Promotion (Smart City Scheme) Regulations 2015. The earmarked land is
changes such that it is reclassified as property, plant and equipment, its fair value at the date of reclassification currently valued at MUR 0.6M per acre and the objective is to revalue the land base on the Smart City project.
becomes its cost for subsequent accounting.
(b) Basis of valuation of the earmarked land: The residual method of valuation is to estimate the possible revenue
THE GROUP of the developable land and assuming all Smart City permits are granted net of all the costs of developing the
2021 2020 entire Smart City, mostly being the cost of construction of the buildings and services, to end up with a value of
bare developable land.
MUR’000 MUR’000
(c) The earmarked land has been valued at MUR 1,576M giving rise to a fair value increase of MUR942M. The average
Fair value model
estimated price per acre is MUR 1.5M.
At 1 July 1,780,315 1,611,573
The investment properties are classified as level 3 on the fair value hierarchy. Sensitivity analysis is disclosed in
Additions - 1,670 Note 9.(a).
Disposals (6,341) (3,620)
Increase in fair value 959,638 160,297 2021
Exchange differences 7,980 10,395 Significant valuation input: Fair value Range
At 30 June 2,741,592 1,780,315 MUR’000 MUR’000

8,292
The investment properties relate mainly to those of BNI Madagascar and Ferney Limited.
Price per hectare - earmarked land 1,576,610 - 2,200,000
BNI Madagascar 2,529,026 1,593,256
Price per hectare - other land 817,320 533 - 17,769
Ferney Limited 212,566 187,059
2,741,592 1,780,315
2020
Significant valuation input: Fair value Range
BNI Madagascar
MUR’000 MUR’000
The investment properties were fair valued by Cabinet Razafindratandra, an independent professionally
qualified valuer. The fair value of MUR 213M (2020: MUR 187M) was determined based on the replacement cost Price per hectare - land 1,451,820 533 - 17,769
method whereby the valuation of the properties is discounted based on the future evolution of the zone in which
the properties are found, the surrounding constructions access to infrastructure and the topography of the land.
11. INTANGIBLE ASSETS
(a) Valuation inputs and relationships to fair value
Accounting policies
Valuation model Replacement Cost
Goodwill
Unobservable inputs Obsolescence Rate/ Unobservable cost per square meter
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the
Range of inputs 6.02% to 53.22% (2020: 15.27% - 76.89%) business less accumulated impairment losses, if any.
(b) Sensitivity analysis Goodwill with an indefinite life is not subject to amortisation and is tested annually for impairment or more
frequently if events and changes in circumstances indicate that they might be impaired. On disposal of a subsidiary,
A 5% increase or decrease in the obsolescence rate would lead to a decrease/increase of MUR 10.6M (2020: MUR 9.3M)
the attributable amount of goodwill is included in the determination of the gains and losses on disposal.
in the fair value of investment properties.
Goodwill is allocated to cash generating units for the purpose of impairment testing. Any impairment is presented
Ferney Limited separately on the face of the statement of profit or loss and other comprehensive income.
(a) The investment properties of Ferney Limited (“FL”) comprise sugarcane land and agricultural land held for rental Computer software
purposes as well as land earmarked for the Ferney Technopole Smart City Project under Ferney Development
Company Limited (“FDL”). These lands were valued by CDDS Land Surveyors and Property Valuer, an independent Acquired computer software licences are capitalised on the basis of costs incurred to acquire and bring to use the
and professionally qualified valuer, in 2021. specific software and are amortised using the straight-line method over their estimated useful lives (1 - 8 years).
(b) Ferney Technopole Smart City Project: On 17 November 2020, the Economic Development Board issued a letter Costs associated with developing or maintaining computer software are recognised as an expense as incurred.
of intent to FDL pursuant to Regulation 9(3) of the SCS Regulations. The letter of intent is issued on the basis Costs that are directly associated with the production of identifiable and unique software controlled by the Group
that FDL will develop a technopole project comprising an agro processing unit, business centre, light industrial/ and that will generate economic benefits exceeding costs beyond one year, are recognised as intangible assets.
storage facilities, science park, R&D centre, data centre, retirement village, luxury housing, affordable housing, Direct costs include the software development employee costs and an appropriate portion of relevant overheads.
healthcare/wellness centre, Eco-resort and Wildlife Centre and Dutch landing museum over freehold land of
an extent of 500HA under the Smart City Scheme (the “Scheme”).
212 213

11 INTANGIBLE ASSETS (Cont’d) 11. INTANGIBLE ASSETS (Cont’d)

Accounting policies (Cont’d) The breakdown of the goodwill is:
Computer software (Cont’d) 2021 2020

Computer software development costs, recognised as assets, are amortised over their estimated useful lives, MUR’000 MUR’000
not exceeding 3 years.
Healthcare Segment 798,148 798,148
Hotel Segment 225,024 225,024
Computer Development
(a) The Group Software Cost Goodwill Total Finance Segment 252,955 252,955
MUR’000 MUR’000 MUR’000 MUR’000 1,276,127 1,276,127
Year ended 30 June 2021 The breakdown of the impairment charge accounted for in 2021 is as follows:
COST Healthcare segment – IMG Group - 128,058
At 1 July 2020 742,264 8,552 1,308,484 2,059,300
Additions 32,652 - - 32,652 Impairment testing of goodwill
Transfer from plant & equipment (Note 9(a)) 1,647 - - 1,647 Healthcare Segment
Translation adjustment 23,211 (1,279) - 21,932 The key assumptions used for the impairment calculation are:
Transfer to non-current assets held for sale (Note 21) (16,033) - - (16,033)
Discount rate: Discount rate represents the current market assessment of the risks specific to each CGU, taking into
Write offs (14,291) (38) - (14,329) consideration the time value of money and specific risk of the underlying assets that have not been incorporated
At 30 June 2021 769,450 7,235 1,308,484 2,085,169 in the cash flow estimates. The discount rate calculation is based on specific circumstances of the Company and
its operating segments and is derived from its weighted average cost of capital (WACC). The WACC takes into
AMORTISATION consideration both debt and equity. The cost of equity is derived by using comparable industries data and adjust for
At 1 July 2020 497,213 5,125 32,357 534,695 the country risk and size for the company. The cost of debt is based on the interest-bearing borrowings.
Charge for the year 92,334 32 - 92,366 Growth rate estimates: Rates are based on management’s best estimates of the Group’s and industry’s growth rate.
Translation adjustment 5,414 241 - 5,655 Goodwill has been allocated for impairment testing purposes to the following cash generating units:
Write offs (2,909) - - (2,909)
2021 2020
Transfer to non-current assets held for sale (Note 21) (13,416) - - (13,416)
MUR’000 MUR’000
At 30 June 2021 578,636 5,398 32,357 616,391
IMG Group (i) 207,203 207,203
NET BOOK VALUES
C-Care Group:
At 30 June 2021 190,814 1,837 1,276,127 1,468,778
Ex-Medical and Surgical Company Ltd (ii) 240,378 240,378
Year ended 30 June 2020
Wellkin Hospital (iii) 343,059 343,059
COST
Department of Cardiac Sciences and Critical Care (iv) 7,508 7,508
At 1 July 2019 694,180 6,190 1,436,542 2,136,912
798,148 798,148
Additions 35,164 509 - 35,673
Transfer from plant & equipment (Note 9(a)) 942 1,438 - 2,380
(i) IMG Group
Translation adjustment 23,421 415 - 23,836
Impairment charge for the year - - (128,058) (128,058) The recoverable amount of this cash-generating unit is MUR 511M determined based on the fair value less costs to
sell calculations. These calculations use cash flow projections based on financial budgets and forecasts approved
Write offs (11,443) - - (11,443) by management. Fair value was determined by using an appropriate discount rate to discount future cash flows
At 30 June 2020 742,264 8,552 1,308,484 2,059,300 generated from IMG Group. The discount rate calculation is based on specific circumstances of the cash generating
units and a rate of 20.69% (2020:15.7%) has been estimated. The terminal value has been computed by capitalising
AMORTISATION the net income prevailing at the end of the cash flow projections, using a growth rate of 6% (2020: 4.7%) and
At 1 July 2019 396,854 4,754 33,032 434,640 discounted as appropriate.
Charge for the year 96,465 30 - 96,495
2021 2020
Translation adjustment 15,337 341 (675) 15,003
MUR’000 MUR’000
Write offs (11,443) - - (11,443)
Sensitivity to changes in assumptions – IMG Group
At 30 June 2020 497,213 5,125 32,357 534,695
Discount factor +0.5% point (27,000) (26,000)
NET BOOK VALUES
Discount factor -0.5% point 30,000 29,000
At 30 June 2020 245,051 3,427 1,276,127 1,524,605
Terminal growth rate +0.5% point 10,400 4,300
Terminal growth rate -0.5% point (9,700) (3,900)
214 215

11. INTANGIBLE ASSETS (Cont’d) 11. INTANGIBLE ASSETS (Cont’d)

Impairment testing of goodwill (Cont’d) Impairment testing of goodwill (Cont’d)
Healthcare Segment (Cont’d) Financial services segment (Cont’d)
(ii) C-Care (Mauritius) Limited (Ex-Medical and Surgical Company Ltd) The key assumptions used for the impairment calculation are:
C-Care is listed on the stock exchange of Mauritius (DEM). The share price of C-Care increased significantly over the
financial year ended 30 June 2021, however, with low trading volumes. The investment in C-Care has been valued BNI Investment
using the Volume Weighted Average Price (“VWAP”) for the financial year ended 30 June 2021 as management Madagascar Professionals MITCO Group
considers it is a more appropriate valuation of the Company. The share price as at 30 June 2021 was MUR 19.70 and SA Limited Limited
the VWAP used for valuing the investment was MUR 10.35. The recoverable amount of this cash generating unit is
MUR 911M. The fair value as at 30 June 2020 was obtained by using a share price of MUR 4.34. 2021
Risk-free rate (%) 9.50% 4.31% 4.31%
(iii) Wellkin Hospital
Equity beta 0.74 0.7 0.7
The recoverable amount of the cash-generating units for the balance of MUR 343M has been determined based on
the fair value less cost to sell. These calculations use cash flow projections based on financial budgets approved Specific risk premium (%) 4.00% 3.00% 3.00%
by senior management covering a five-year period. The discount rate applied to the cash flow projections is 9.25% Equity market risk premium (%) 9.84% 5.98% 5.98%
(2020: 8.86%) and the growth rate is 3% (2020: 2.4%).
Weighted Average Cost of Capital (%) 19.67% 10.60% 10.60%
2021 2020 Growth (%) 3.00% 3.00% 3.00%
MUR’000 MUR’000 Model Dividend Dividend Dividend
Discount Discount Discount
Sensitivity to changes in assumptions – Wellkin Hospital
Model Model Model
Number of years 4 3 3
2020
Risk-free rate (%) 11.00% 3.79% 3.79%
Equity beta 1 0.76 0.76
(iv) Department of Cardiac Sciences and Critical Care
Specific risk premium (%) 4.00% 1.00% 1.00%
The recoverable amount of Department of Cardiac Sciences and Critical Care Cash Generating Unit of MUR 7.5M Equity market risk premium (%) 7.30% 7.58% 7.58%
has been determined based on its fair value less cost to sell. These calculations use cash flow projections based
on financial budgets approved by senior management covering a five-year period. The discount rate applied to the Weighted Average Cost of Capital (%) 22.30% 10.31% 10.31%
cash flow projections is 9.25% (2020: 8.86%) and growth rate is 3% (2020: 2.4%). Management has used its past Growth (%) 3.00% 3.00% 3.00%
experience in determining the value of each assumption. As a result of the analysis, management did not identify
any impairment. Model Dividend Dividend
Dividend Discount Discount Discount
Model Model Model
2021 2020
Number of years 4 3 3
MUR’000 MUR’000
Sensitivity to changes in assumptions – Department of Cardiac Sciences
Financial services segment
Goodwill has been allocated for impairment testing purposes to the following cash generating units.
2021 2020
MUR’000 MUR’000
Indian Ocean Financial Holdings Limited (Group) 163,378 163,378
Investment Professionals Ltd 19,062 19,062
Mitco Group Limited 70,515 70,515
252,955 252,955
216 217

11. INTANGIBLE ASSETS (Cont’d) 12. INVESTMENTS IN SUBSIDIARY COMPANIES

Impairment testing of goodwill (Cont’d) Accounting policies
Financial services segment (Cont’d) Separate financial statements
Management has determined the values assigned to each of the above key assumptions as follows: In the separate financial statements of the investor, investments in subsidiary companies are carried at fair value.
On adoption of IFRS 9, the Group made an irrevocable election at the time of initial recognition to account for equity
investments at fair value through OCI (‘FVOCI’). There is no subsequent reclassification of fair value gains and losses
Assumption Approach used to determine values to profit and loss following the derecognition of these investments. On disposal of these equity investments,
Reflects the risk-free rate applicable to the country, for instance, the 10-year any related balance within the FVOCI reserve is reclassified to retained earnings.
Risk-free rate (%) (2019: 15-year) bond rate.
Consolidated financial statements
Equity beta Volatility of a stock compared to the market. Applicable rate in country used.
Return in excess of the risk-free rate that an asset is supposed to yield based on country in Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an
Specific risk premium (%) which the investment operates as well as its segment. entity when the Group is exposed to or has rights to variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the
Firm’s cost of capital and is not determined by management but rather by external date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
factors. However, this is validated against the general risk appetite framework put in
Weighted Average Cost of Capital (%) place by the controlling shareholder. The acquisition method of accounting is used to account for business combinations by the Group. The consideration
transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and
Growth (%) Based on forecasts and business plans of the investee company
the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability
resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
(c) Significant estimate: Impact of possible changes in key assumptions initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any
non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share
BNI Investment of the acquiree’s net assets.
Madagascar Professionals Mitco Group
2021 SA Ltd The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
Limited
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net
Weighted Average Cost of Capital (%) +5% +5% +5%
assets acquired are recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired
Impact on Goodwill Nil (MUR 5M) Nil in the case of a bargain purchase, the difference is recognised directly in profit or loss as a bargain purchase gain.
2020 Inter-company transactions, balances and unrealised gains on transactions between Group companies are
Weighted Average Cost of Capital (%) +5% +5% +5% eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
Impact on Goodwill Nil Nil (MUR 85M)
Transactions with non-controlling interests
The Group treats transactions with non-controlling interests as transactions with equity owners of the Group.
Hotels and resorts segment For purchases from non-controlling interests, the difference between any consideration paid and the relevant
share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals
Goodwill has been allocated for impairment testing purposes to the following CGUs:
to non-controlling interests are also recorded in equity.
THE GROUP Disposal of subsidiaries
2021 2020
When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value with the
MUR’000 MUR’000 change in carrying amount being recognised in profit and loss. The fair value is the initial carrying amount for the
purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset.
Hotel property CGU - Anahita Hotel Limited 223,689 223,689
In addition, any amounts previously recognised in other comprehensive income in respect of that entity are
Tour operator CGU 1,335 1,335 accounted for as if the Group had directly disposed of the related assets and liabilities. This may mean that amounts
225,024 225,024 previously recognised in other comprehensive income are reclassified to retained earnings.
The directors have concluded that the above goodwill was not impaired as at 30 June 2021.
The recoverable amount of this cash-generating unit is MUR 5,469M determined based on the fair value less costs
to sell calculations. These calculations use cash flow projections based on financial budgets and forecasts approved
by management. Fair value was determined by using an appropriate discount rate to discount future cash flows
generated from Anahita Hotel Limited and the tour operator. The discount rate calculation is based on specific
circumstances of the cash generating units and a rate of 9.50% has been estimated. The terminal value has been
computed by capitalising the net income prevailing at the end of the cash flow projections, using a growth rate of
3% and discounted as appropriate.
218 219

12. INVESTMENTS IN SUBSIDIARY COMPANIES (Cont’d) 12. INVESTMENTS IN SUBSIDIARY COMPANIES (Cont’d)

Accounting policies (Cont’d) Additions (Cont’d)
Fair value hierarchy (iv) On 8 July 2019, CIEL Limited has acquired 114,461,596 shares in C-Care (Mauritius) Ltd at MUR 2.39 per share,
for a total consideration of MUR 273.6 M, net of transaction costs of MUR 2M, payable in cash. CIEL’s shareholding
This section explains the judgements and estimates made in determining fair values of the financial instruments in C-Care (Mauritius) Ltd amounts to 20.08%. CIEL Healthcare Limited, CIEL Limited’s subsidiary, has acquired
that are recognised and measured at fair value in the financial statements. To provide an indication about the
50,209,205 no par value ordinary shares of C-Care (Mauritius) Ltd. and CIEL Healthcare Limited’s shareholding
reliability of the inputs used in determining fair value, the Company has classified its investments in subsidiaries
has increased from 58.60% to 67.41%. CIEL Limited has injected MUR 64.0M to maintain its shareholding of
into the three levels prescribed under the accounting standards.
53.03% in CIEL Healthcare Limited. The implication on the consolidated statement of change in equity was to
reduce the non-controlling interest by MUR 200.9M and the retained earnings by MUR 141M.
(a) The Company MUR’000 MUR’000 MUR’000 MUR’000
Level 1 Level 2 Level 3 Total (v) On 4 July 2019, CIEL Limited has acquired an additional 5,973,635 shares in CIEL Textile Limited (“CTL”) at MUR 44
per share, for a total consideration of MUR 262.8M, net of transaction costs of MUR 3.5M, payable 50% in cash and
VALUATION
50% in shares of CIEL Limited, the latter being equivalent to 19,911,846 new ordinary shares. On 6 August 2020
At 1 July 2020 496,764 1,422,671 11,009,482 12,928,917 CIEL Limited has acquired 1,234,880 share in CIEL Textile Limited at MUR 44 per share, for a total consideration
Additions - - 54,018 54,018 of MUR 54.3M, payable 50% in cash and 50% in shares. This increased CIEL Limited’s shareholding in CIEL Textile
Limited from 92.92% to 100%. The implication on the consolidated statement of change in equity was to reduce
Fair value adjustment 687,914 355,668 4,217,117 5,260,699
the non-controlling interest by MUR 309.3M and the retained earnings by MUR 13M. The admission of CIEL
Transfers (1,184,678) 1,184,678 - - Textile Limited was subsequently cancelled from the Development & Enterprise Mauritius (‘DEM’).
At 30 June 2021 - 2,963,017 15,280,617 18,243,634 Specific valuation techniques used to value the Company’s investments include:
Level 1 investments - Unadjusted quoted prices have been used to value these investments.
MUR’000 MUR’000 MUR’000 MUR’000
Level 2 investments - The quoted prices, adjusted by a 10% premium has been used to value investments. This is
Level 1 Level 2 Level 3 Total explained by the fact that the Company holds a controlling stake in those subsidiaries and would expect to offer
VALUATION such a premium, should it wish to acquire more shares in these entities. This premium falls within the range of
those offered on previous similar transactions.
At 1 July 2019 - 7,461,244 6,544,053 14,005,297
Where appropriate, the ratio of the cumulative share price to the cumulative volume traded over a given time
Additions 278,013 - 392,451 670,464
period has been used to fair value the investment.
Fair value adjustment 218,751 (1,876,214) (89,381) (1,746,844)
Level 3 investments - The net asset value has been used to value the level 3 investments. These represent
Transfers - (4,162,359) 4,162,359 - intermediate investment holding companies, which have also accounted for their respective investments at fair
At 30 June 2020 496,764 1,422,671 11,009,482 12,928,917 value using appropriate valuation techniques.
There were transfers in the fair value hierarchy during the year ended 30 June 2020 and 30 June 2021. The Group’s
Additions and Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of
the reporting period.
(i) During the year, the Company injected a further MUR 54M in CIEL Healthcare Ltd, with no change in shareholding.
Transfers between levels 1 and 2 during 2021
(ii) On 21 May 2020, the Group acquired an additional 50 percent interest in Laguna Clothing LLP for MUR 256.7M
in cash, increasing its ownership from 50% to 100%. The carrying amount of Laguna Clothing LLP’s net assets in C-Care is listed on the Stock Exchange of Mauritius (DEM). The investment was fair valued using a share price of
the consolidated financial statements on the acquisition was MUR 282.4M. The Group recognised a decrease in MUR 4.34 at 30 June 2020. The quoted share price of C-Care increased from MUR 4.34 to MUR 19.70 over a period
non-controlling interests of MUR 282.7M and an increase in retained earnings of MUR 25.8M. of 12 months up to 30 June 2021, however, with relatively low trading frequency and volumes on the market,
not sufficient to provide appropriate pricing information on an ongoing basis.
(iii) On 01 January 2020, the Group acquired an additional interest of 2.07% in Mitco Group Ltd for MUR 46.86M
in cash, increasing its ownership from 61.21% to 63.28%. The carrying amount of Mitco Group Ltd net assets in Management has considered various valuation methodologies to determine an appropriate fair value of C-Care
and the share price has been determined as MUR 10.35 using the Volume Weighted Average Price (“VWAP”) method.
the consolidated financial statements on the acquisition was MUR 71.1M. The Group recognised a decrease in
VWAP is a measurement that shows the average price of a listed share, adjusted for the volume traded over a
non-controlling interest of MUR 1.11M and a decrease in retained earnings of MUR 0.64M.
specific period.
As a result of the quoted share price being adjusted based on VWAP, the investment in C-Care has been transferred
from Level 1 to Level 2 in the fair value hierarchy.
Transfers between levels 2 and 3 during 2020
In 2020, the Company transferred an investment from level 2 to level 3. In 2019, the investment was valued at
its latest transaction price of MUR 44 which was published on the entity’s website and was thus observable
to the public. However, in 2020, the directors deemed that the Discounted Cash Flow model would be most
representative of the fair value of the investment as at 30 June 2020.
220 221


Valuation inputs and relationships to fair value Valuation inputs and relationships to fair value (Cont’d)
CIEL Finance Limited C-Care (Mauritius) Ltd
The following table summarises the quantitative information about the significant unobservable inputs used in Given the quoted share price of C-CARE has increased from MUR 4.34 to MUR 19.70, management has deemed
level 3 fair value measurements. the Volume Weighted Average Price (V-WAP) of 12 months to be a better proxy for fair value. The rationale for the
Fair value Valuation technique Unobservable inputs Range of inputs valuation method has been detailed and transferred between Level 1 and Level 2 in 2021.
Description MUR’000 Valuation process

30 June 2021 Management has a team that performs the valuations of non-property items required for financial reporting
CIEL Finance Limited 2,623,716 Price-earnings ratio Price-earnings ratio 10 (i) purposes, including level 3 fair values.
Dividend discount model Weighted-average cost of capital 19.70% (ii) The team reports to the CFO and the audit committee (AC). Discussions of valuation processes and results are held
30 June 2020 between the CFO, AC and the valuation team quarterly, in line with the group’s quarterly reporting periods.
CIEL Finance Limited 2,649,271 Price-earnings ratio Price-earnings ratio 11.26 (i)
The main level 3 inputs used by the group are derived and evaluated as follows:
Dividend discount model Weighted-average cost of capital 22.30% (ii)
• Discount rates for financial assets and financial liabilities are determined using a capital asset pricing model
Relationship of unobservable inputs to fair value to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk
specific to the asset.
(i) Increase in PE ratio by 2.5% (2020 - 2.5%) would increase fair value by MUR 111M (2020 - MUR 88M).
• Risk adjustments specific to the counterparties (including assumptions about credit default rates) are derived
(ii) Increase in the WACC by 5% (2020 - 5%) would decrease fair value by MUR 284 M (2020 - MUR 217M).
from credit risk gradings determined by VALUE IFRS Plc’s internal credit risk management group.
CIEL Textile Limited
Fair value Valuation technique Unobservable inputs Range of inputs • Earnings growth factors for unlisted equity securities are estimated based on market information for similar
types of companies.
MUR’000
• Contingent consideration – expected cash inflows are estimated based on the terms of the sale contract and
30 June 2021
the entity’s knowledge of the business and how the current economic environment is likely to impact it.
CIEL Textile Limited 5,446,700 Discounted Cash Flow Weighted-average 10.6%-11.4%
cost of capital Changes in level 2 and level 3 fair values are analysed at the end of each reporting period during the quarterly
Terminal Growth Rate 2%-3.5% valuation discussion between the CFO, AC and the valuation team. As part of this discussion the team presents a
report that explains the reason for the fair value movements.
2021
MUR’000
Sensitivity to changes in assumptions
Terminal +0.5% point 75,000
Terminal -0.5% point (71,000)
Weighted-average cost of capital +0.5% point (567,000)
Weighted-average cost of capital -0.5% point 651,000
Fair value Valuation technique Unobservable inputs Range of inputs

MUR’000
30 June 2020
Weighted-average
4,264,715 Discounted Cash Flow cost of capital 10.5%-11.1%
CIEL Textile Limited Terminal Growth Rate 2%-3.5%
2020
MUR’000
Sensitivity to changes in assumptions
Terminal +0.5% point 497,000
Terminal -0.5% point (434,000)
Weighted-average cost of capital +0.5% point (563,000)
Weighted-average cost of capital -0.5% point 646,000
CIEL Agro & Property Limited and CIEL Healthcare Limited have been valued at their net asset value as they hold
mainly investments in two quoted entities, which have been valued using the prevailing quoted price and adjusted
quoted price where appropriate
222 223

12. INVESTMENTS IN SUBSIDIARY COMPANIES (Cont’d)

(b) The list of the Group’s significant subsidiaries is as follows:
Name of subsidiary company Country of

Proportion of ownership Incorporation/
Denominated interests held by Principle place
Class of Shares Year End Currency Stated capital Percentage holding non-controlling interests of business Main business
2021 2020 2021 2020 2021 2020
Direct Direct
000’s 000’s % % % %
CIEL Agro & Property Limited **
Ordinary 30 June MUR 1,413,865 2,930,318 100.00 100.00 - - Mauritius Investment
CIEL Properties Limited** Ordinary 30 June MUR 2,177,701 - 100.00 100.00 - - Mauritius Investment
CIEL Corporate Services Ltd Ordinary 30 June MUR 25 25 100.00 100.00 - - Mauritius Management
services
CIEL Finance Limited Ordinary 30 June MUR 1,933,231 1,933,231 75.10 75.10 24.90 24.90 Mauritius Investment
CIEL Healthcare Limited Ordinary 30 June MUR 1,637,895 1,517,235 53.03 53.03 46.97 46.97 Mauritius Investment
CIEL Textile Limited Ordinary 30 June MUR 685,865 685,865 100.00 100.00 - - Mauritius Investment
Rockwood Textiles Ltd Ordinary 30 June MUR 1 1 100.00 100.00 - - Mauritius Property
Sun Limited Ordinary 30 June MUR 1,945,451 1,945,451 50.10 50.10 49.90 49.90 Mauritius Investment
C-Care (Mauritius) Ltd *
Ordinary 30 June MUR 289,801 289,801 20.08 20.08 44.18 44.18 Mauritius Healthcare
Services
*
CIEL Limited indirectly holds 35.74% of C-Care (Mauritius) Ltd through CIEL Healthcare Limited and the effective
shareholding is 55.82%.
Restructuring
**
During the year ended 30 June 2021, there was a restructuring within the group where shares held by CIEL Limited
in CIEL Agro & Property Limited have been transferred to CIEL Properties Limited.
The restructuring was made through the following process:
• A capital reduction in CIEL Agro & Property Limited equal to the cost of some entities held by the latter (Ebène
Skies Ltd, Rivière Champagne Ltd, Ferney Ltd , Bois des Amourettes Ltd).
• Purchase of shares in CIEL Properties Limited for a consideration equal to the fair value at the date of the
transfer of entities currently held by the latter (Ebène Skies Ltd, Rivière Champagne Ltd, Ferney Ltd, Bois des
Amourettes Ltd).
224 225


(c) Summarised financial information on subsidiaries with material non-controlling interests. (c) Summarised financial information on subsidiaries with material non-controlling interests (Cont’d)
Non- Non- Profit/ Non- Non- Non- Profit/ Non-

Current current Current current (loss) for Comprehensive controlling Current current Current current (loss) for Comprehensive controlling
assets assets liabilities liabilities Revenue the year income interests assets assets liabilities liabilities Revenue the year income interests
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
2021 2020 - Restated
CIEL Textile CIEL Textile
Limited – Group 6,633,085 4,295,882 6,740,482 1,037,016 10,444,465 626,559 167,428 (733) Limited – Group 5,905,550 5,065,905 6,156,752 1,146,768 10,389,991 (655,952) 276,145 (1,095)
Sun Limited Sun Limited –
– Group 2,088,235 17,920,117 3,440,385 9,648,928 527,901 (2,076,714) 638,596 (88,550) Group - restated 1,489,195 19,714,281 5,046,703 10,049,575 4,634,869 (1,818,311) (1,612,320) (39,135)
CIEL Finance CIEL Finance
Limited – Group 25,569,766 14,748,078 34,534,354 832,945 3,782,304 608,273 776,267 537,890 Limited - Group 22,129,238 12,477,610 28,908,609 1,051,056 3,462,326 500,890 927,198 714,193
CIEL Healthcare CIEL Healthcare
Limited – Group* 830,279 3,074,851 961,558 1,540,863 2,994,560 296,001 40,844 99,878 Limited - Group 711,664 3,052,606 955,949 1,561,530 2,376,807 (96,375) 24,470 11,295
Non-controlling interests in CIEL Healthcare Ltd includes of 20.08% of C-Care (Mauritius) Ltd share
Net Increase/
(decrease) Net Increase/
in Cash (decrease) in
Operating Investing Financing and Cash Operating Investing Financing Cash and Cash
Activities Activities Activities Equivalents Activities Activities Activities Equivalents
2021 2020 - Restated
CIEL Textile Limited – Group 988,904 (197,620) (312,341) 478,943 CIEL Textile Limited – Group 1,120,368 (537,810) 89,672 672,230
Sun Limited – Group (764,809) 1,380,177 305,487 920,855 Sun Limited – Group - restated 810,882 (420,003) (369,544) 21,335
CIEL Finance Limited – Group 752,974 (118,310) (152,691) 481,973 CIEL Finance Limited - Group 1,771,580 (130,110) 1,858,191 3,499,661
CIEL Healthcare Limited – Group 520,072 (201,901) (100,925) 217,246 CIEL Healthcare Limited - Group 169,929 (242,225) 42,405 (29,891)
Profit Profit
allocated allocated
to non- Accumulated to non- Accumulated
Dividend controlling non-
Dividend controlling non-
paid to non- interests controlling
paid to non- interests controlling
controlling during the Interests at
interests year 30-Jun-21 controlling during the Interests at
interests year 30-Jun-20
MUR’000 MUR’000 MUR’000
MUR’000 MUR’000 MUR’000
CIEL Textile Limited - Group - (733) 61,339
CIEL Textile Limited – Group (71,760) (1,095) 62,072
Sun Limited – Group - (88,550) 677,011
Sun Limited – Group - restated - (39,137) 765,561
CIEL Finance Limited - Group (413,377) 537,890 1,877,453
CIEL Finance Limited - Group (381,525) 714,193 1,733,203
CIEL Healthcare Limited - Group (33,511) 99,878 291,145
CIEL Healthcare Limited - Group - 11,295 277,847
The summarised financial information above is the amount before intra-group eliminations.
For subsidiary companies having a different reporting date, management accounts have been prepared as
at 30 June.
226 227

13. INVESTMENTS IN JOINT VENTURES 13 INVESTMENTS IN JOINT VENTURES (Cont’d)

Accounting policies (c) The results of the joint ventures, all of which were incorporated in Mauritius and unlisted, have been included
in the consolidated financial statements.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of Details of the joint ventures of the Group and Company are as follows:
an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the
parties sharing control. Effective Percentage holding
Year-end / Principal
Separate financial statements Name of Joint Ventures Reporting date Direct Indirect activity
In the separate financial statements of the investor, investments in joint ventures are carried at fair value. % %
The carrying amount is reduced to recognise any impairment in the value of individual investments. 2021
Consolidated financial statements Hotels
Anahita Residence and Villas Ltd June 50 - and resorts
Joint ventures are accounted for using the equity method.
Bank One Limited December - 50 Banking
2021 2020 Domaine de l’Etoile Limited June - 50 Leisure
MUR’000 MUR’000 Hotels
Solea Vacances SA June - 50 and resorts
(a) The Group
2020
At 1 July 1,973,154 1,718,847
Hotels
Addition (Note (i)) 50,000 300,000
Anahita Residence and Villas Ltd June 50 - and resorts
Share of results (9,588) (67,047)
Bank One Limited December - 50 Banking
Share of comprehensive income (34,287) 21,354
Domaine de l’Etoile Limited June - 50 Leisure
At 30 June 1,979,279 1,973,154
Hotels
Made up as follows: Solea Vacances SA June - 50 and resorts
Net assets 1,804,794 1,798,669
Goodwill 174,485 174,485 For the joint ventures having a different reporting date, management accounts have been prepared as at June 30,
2021 and 2020 respectively.
1,979,279 1,973,154
(b) The Company
Unlisted Level 3 Level 3
At 1 July 35,371 43,896
Addition (Note (i)) 50,000 -
Fair value adjustment 4,537 (8,525)
At 30 June 89,908 35,371
2021 - The fair value has been based on a discounted cash flow approach over a period of five years using the Gordon
Growth Model. A WACC of 10.73% and terminal growth rate of 3% have been used. An increase/decrease in WACC by
5% would have been decreased/increased the investment fair value by MUR 16M/MUR 18M.
2020 - The fair value has been based on a discounted cash flow approach over a period of five years using the
Gordon Growth Model. A WACC of 10.99% and terminal growth rate of 3% have been used. An increase/decrease in
WACC by 5% would have been decreased/increased the investment fair value by MUR 21M/MUR 24M.
The Directors are of the opinion that there were no indicators of impairment on the investment in joint venture at
year end.
(i) Addition
During the year ended 30 June 2021, the group has made additional investment of MUR 50M in Anahita Residence
and Villas Ltd; with no changes in shareholding. During the year ended 30 June 2020, the group has made additional
investment of MUR 300M in BankOne.
228 229

13 INVESTMENTS IN JOINT VENTURES (Cont’d) 13 INVESTMENTS IN JOINT VENTURES (Cont’d)

(d) Summarised financial information in respect of each of the joint ventures is set out below: (e) Reconciliation of the above summarised financial information to the carrying amount recognised in the
financial statements:
Profit/ Other Share of other
(Loss) for Share of Comprehensive Comprehensive Opening Profit/ Other Interest
Assets Liabilities Revenue the year Profit/(Loss) Income Income Net Issue of (loss) for Comprehensive Closing in Joint
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 Assets Shares the Year income Net Assets Ownership Goodwill ventures
2021 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Anahita Residence 2021

and Villas Ltd 614,406 565,304 33,503 (136,219) (68,110) 7,494 3,747 Anahita Residence
Bank One Limited 47,003,702 43,500,614 1,635,715 133,044 66,522 (88,101) (44,051) and Villas Ltd 42,736 100,000 (136,219) 7,494 14,011 7,005 - 7,005
Domaine de Bank One Limited 3,458,147 - 133,044 (88,101) 3,503,090 1,751,545 174,485 1,926,030
l’Etoile Limited 603 6,511 - (315) (157) - - Domaine de
Solea Vacances SA 293,416 134,744 106,063 (15,688) (7,843) 12,032 6,017 l’Etoile Limited (5,750) - (315) - (6,065) (3,032) - (3,032)
(9,588) (68,575) (34,287) Solea Vacances SA 102,210 - (15,688) 12,032 98,554 49,276 - 49,276
1,804,794 174,485 1,979,279
2020
Anahita Residence 2020
and Villas Ltd 594,171 512,102 305,732 (60,339) (30,170) (9,364) (4,682) Anahita Residence
Bank One Limited 62,833,055 59,374,910 2,184,246 (73,117) (36,559) 36,908 18,455 and Villas Ltd 112,440 - (60,339) (9,365) 42,736 21,368 - 21,368
Domaine de Bank One Limited 2,894,353 600,000 (73,117) 36,911 3,458,147 1,729,074 174,485 1,903,559
l’Etoile Limited 1,897 7,628 15,436 (88) (44) - - Domaine de
Solea Vacances SA 320,989 258,628 1,102,704 (550) (274) 15,164 7,581 l’Etoile Limited (5,663) - (87) - (5,750) (2,875) - (2,875)
(67,047) 42,708 21,354 Solea Vacances SA 87,594 - (550) 15,164 102,208 51,103 - 51,103
1,798,670 174,485 1,973,154
The above amounts of assets, liabilities and results include the following:
Non-
Non- Current Current Depreciation
Current current Financial Financial & Interest
Assets Assets Liabilities Liabilities Amortisation Interest Income Expense
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
2021
Anahita Residence
and Villas Ltd 35,615 578,791 430,771 134,533 (33,360) - (62,262)
Bank One Limited 47,003,702 - - 43,500,614 (75,801) 1,179,738 (392,074)
Domaine de
l’Etoile Limited 243 360 - 6,511 (64) - (36)
Solea Vacances SA 291,407 2,009 - 134,744 (1,426) 986 -
2020
Anahita Residence
and Villas Ltd 19,471 574,697 348,608 167,737 (2,738) - (31,240)
Bank One Limited 62,833,055 - - 59,374,910 78,974 1,746,740 (645,954)
Domaine de
l’Etoile Limited 1,474 424 - 7,628 (64) - (40)
Solea Vacances SA 2,351 318,628 - 258,628 (1,951) - (142)
230 231

14 INVESTMENTS IN ASSOCIATES 14 INVESTMENTS IN ASSOCIATES (Cont’d)

Accounting policies (a) The Group (Cont’d) 2021 2020
Separate financial statements MUR’000 MUR’000
In the separate financial statements of the investor, investments in associates are carried at fair value. Any change Made up as follows:
in fair value is recognised in other comprehensive income. The carrying amount is reduced to recognise any Net assets 3,968,312 3,971,726
impairment in the value of individual investments.
Goodwill 16,015 16,015
Consolidated financial statements
3,984,327 3,987,741
An associate is an entity over which the Group has significant influence but not control, or joint control, Group’s share of net assets
generally accompanying a shareholding between 20% and 50% of the voting rights. Investments in associates are
accounted for using the equity method except when classified as held-for-sale. Investments in associates are Listed 3,524,750 3,267,937
initially recognised at cost as adjusted by post acquisition changes in the Group’s share of the net assets of the Unquoted 443,562 703,789
associate less any impairment in the value of individual investments.
3,968,312 3,971,726
Any excess of the cost of acquisition and the Group’s share of the net fair value of the associate’s identifiable assets
and liabilities recognised at the date of acquisition is recognised as goodwill, which is included in the carrying
amount of the investment. Any excess of the Group’s share of the net fair value of identifiable assets and liabilities (b) The Company 2021 2020
over the cost of acquisition, after assessment, is included as income in the determination of the Group’s share of
Unquoted Unquoted
the associate’s profit or loss.
MUR’000 MUR’000
When the Group’s share of losses exceeds its interest in an associate, the Group discontinues recognising further
losses, unless it has incurred legal or constructive obligation or made payments on behalf of the associate. At 1 July 75,028 48,369
Fair value adjustment 152,012 26,659
Unrealised profits and losses are eliminated to the extent of the Group’s interest in the associate. Unrealised losses
are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. At 30 June 227,040 75,028
Where necessary, appropriate adjustments are made to the financial statements of associates to bring the
accounting policies used in line with those adopted by the Group.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate
share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss
where appropriate.
Dilution gains and losses arising in investments in associates are recognised in profit or loss.
2021 2020
MUR’000 MUR’000
(a) The Group
At 1 July 3,987,741 4,297,488
Additions - 3,047
Redemption (485) -
Disposals (Note (f)) (2,015) -
Other movements (3,420) -
Share of results 276,892 15,513
Share of other comprehensive income 72,845 17,771
Dividends (156,005) (138,197)
Impairment of associates (i) - (108,744)
Transfers to non-current assets held for sale (Note 21) (191,226) (99,137)
At 30 June 3,984,327 3,987,741
(i) Management carried out an impairment assessment at 30 June 2021 based on the present value of future
dividend income from its associate. Based on this assessment, no impairment charge has been recognised for
the Group (2020: MUR 108.7M).
232 233

14. INVESTMENTS IN ASSOCIATES (Cont’d) 14. INVESTMENTS IN ASSOCIATES (Cont’d)

(c) The results of the following associated companies, all of which were incorporated in Mauritius, have been included (d) Summarised financial information in respect of each of the associates is set out below:
in the consolidated financial statements.
Profit/(loss) Dividends
Details of the associates are as follows:
Non- Non- for the year received Share of other
Current Current Current Current attributable Share of during the comprehensive
Effective percentage holding Assets Assets Liabilities Liabilities Revenue to owners profit/(loss) year income
Year-end /
Name of associates Reporting date Indirect Direct Principal activity MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
2021 2020 2021 2020 2021
% % % % Alteo Limited 7,370,547 23,773,543 5,262,897 7,219,732 9,549,122 1,154,074 241,894 48,064 62,985
Alteo Limited June 20.96 20.96 - - Agro-Property Laboratoire
Internationale
Laboratoire Internationale Bio Bio Analyse Ltée - - - - - - - - -
Analyse Ltée June 35.00 35.00 - - Healthcare
Hygeia Nigeria
Hygeia Nigeria Limited* December 12.23 12.23 - - Healthcare Limited -
304,727 732,501 116,647 143,279 638,906 76,486 17,653 (645)
Jersey Hygeia Investments Limited** December 12.80 12.80 - - Healthcare Procontact
Procontact Limited*** June - - 47.67 44.43 Call centre Limited 87,422 15,455 21,400 2,933 188,995 37,910 16,844 4,596 1,899
The Kibo Fund LLC December 29.79 29.79 - - Investment entity The Kibo Fund
LLC - - - - - - - - 8,852
Kibo Capital Partners Ltd December 37.55 37.55 - - Fund management
Kibo Capital
EastCoast Hotel Investment Ltd June 15.03 15.03 - - Investment holding Partners Ltd 39,263 28,003 11,199 14,555 43,440 1,002 501 - (246)
EastCoast Hotel
For the associates having a different reporting date, management accounts have been prepared as at 30 June 2021 Investment Ltd - - - - - (701,306) - 103,345 -
and 2020 respectively. 276,892 156,005 72,845
The Directors confirm that the Company has significant influence over the above associates despite holding less 2020
than 20%, through their controlling interests in CIEL Finance, CIEL Healthcare and Sun Limited. Alteo Limited 6,925,029 23,049,532 5,114,210 7,701,578 8,296,611 (114,367) (23,971) 36,049 56,239
* The indirect stake in Hygeia Nigeria Limited is held through Jersey Hygeia Investment Limited. Laboratoire
Internationale
** During the years ended 30 June 2021 and 2020, the Group entered into binding agreements with interested Bio Analyse Ltée 3,131 1,393 6,015 - 15,436 (2,039) (292) - -
buyers for the sale of investments in Hygeia Nigeria Limited and Hygeia HMO Limited respectively. As the sale of
these investments is deemed highly probable, these have been reclassified to assets held for sale. The indirect stake Hygeia Nigeria
Limited 924,123 778,921 650,462 96,939 1,415,729 120,372 27,602 - (3,884)
in Hygeia HMO Limited is held through HNL Investment Limited.
Procontact
*** 44.43% in Procontact Limited represents the voting rights held by CIEL Limited while the % holding represents Limited 71,923 12,942 35,111 3,049 125,536 24,291 17,282 2,737 (11,509)
46.67%. During the year, additional shares have been allocated to CIEL Limited with no voting rights.
The Kibo Fund
LLC 6,359 170,780 - 1,576 403 (11,626) (4,612) - (20,837)
Kibo Capital
Partners Ltd 37,700 25,808 8,035 13,358 46,811 (989) (496) - (2,238)
EastCoast Hotel
Investment Ltd 240,167 2,392,200 240,167 - 45,883 (772,610) - 99,411 -
15,513 138,197 17,771
234 235

14 INVESTMENTS IN ASSOCIATES (Cont’d)

(e) Reconciliation of the above summarised financial information to the carrying amount recognised in the
financial statements:
Other
Redemption/ Comprehensive
Opening Net Disposal/ Other Result Net of Income for Closing Net Ownership Transfer to Impairment of Interest in
Assets issue of Shares movement Dividends the Year Assets Interest Goodwill Held For Sale Associate Associate
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
2021
Alteo Limited 15,784,536 - 46,544 924,756 253,958 17,009,794 3,524,750 - - - 3,524,750
Laboratoire Internationale Bio Analyse Ltée - - - - - - - - - - -
Hygeia Nigeria Limited 733,999 - 77,420 - - 811,419 187,062 4,164 (191,226) - -
Procontact Limited 46,704 - - 27,568 4,274 78,546 34,898 11,851 - - 46,749
The Kibo Fund LLC (10,541) 10,541 - - - - - - - - -
Kibo Capital Partners Ltd 40,340 (485) - 1,002 (491) 40,366 20,183 - - - 20,183
EastCoast Hotel Investment Ltd 2,010,123 - - (701,306) - 1,308,817 392,645 - - - 392,645
4,159,436 16,015 (191,226) - 3,984,327
2020
Alteo Limited 15,609,746 - 168,522 (272,555) 278,823 15,784,536 3,267,937 - - - 3,267,937
Laboratoire Internationale Bio Analyse Ltée 5,693 - - (593) - 5100 1,700 - - (1,700) -
Hygeia Nigeria Limited * 725,070 - - - 8,929 733,999 169,408 4,165 - - 173,575
Procontact Limited 53,207 - (30,794) 24,291 - 46,704 20,750 11,851 - - 32,601
The Kibo Fund LLC 52,344 1,269 - (11,626) (52,529) (10,542) (3,420) - - - (3,420)
Kibo Capital Partners Ltd 44,030 1,774 - (989) (4,474) 40,341 21,058 - - - 21,058
EastCoast Hotel Investment Ltd 2,632,367 - - (622,244) - 2,010,123 603,034 - - (107,044) 495,990
4,132,078 16,015 - (108,744) 3,987,741
236 237

14. INVESTMENTS IN ASSOCIATES (Cont’d) 15. INVESTMENTS IN OTHER FINANCIAL ASSETS (Cont’d)
During the year the investment in KIBO Fund LLC was disposed as follows:
Level 1 Level 3
(f) Profit on disposal of associate DEM
(a) The Group Quoted Unquoted Total
2021
MUR’000 MUR’000 MUR’000
The Group MUR’000
2020
Consideration received or receivable:
At 1 July 40 356,928 356,968
Cash 25,101
Additions - 25,478 25,478
Amount receivable 5,629
Translation difference - 885 885
Total disposal consideration 30,730
Disposals - (17,326) (17,326)
Carrying amount of net assets sold (Note (a)) 3,420
Fair value adjustment - 6,484 6,484
Profit on disposal before reclassification of translation reserve 34,150
At 30 June 40 372,449 372,489
Reclassification of translation reserve (7,472)
Profit on disposal after reclassification of translation reserve (Note 5(a)) 26,678
Level 3
(b) Unquoted Total

The Group’s share of the fair value reserves of KIBO Fund LLC has also been reclassified to retained earnings upon The Company
disposal of the investment. MUR’000 MUR’000
The fair value of the Group’s interest in associates which are listed/quoted on the Stock Exchange of Mauritius is as 2021
follows as at 30 June 2021 and 2020 respectively: At 1 July 28,928 28,928
Fair value adjustment (3,917) (3,917)
2021 2020
At 30 June 25,011 25,011
MUR’000 MUR’000
2020
Alteo Limited 1,722,288 1,014,681
At 1 July 43,816 43,816
Disposals (16,313) (16,313)
15. INVESTMENTS IN OTHER FINANCIAL ASSETS
Fair value adjustment 1,425 1,425
Accounting policies At 30 June 28,928 28,928
Financial assets at fair value through other comprehensive income (FVOCI)
(c) Details of those companies, other than subsidiary and associated companies, in which the Company holds more than
Financial assets at fair value through other comprehensive income (FVOCI) comprise equity securities which are 10% of the issued shares are:
not held for trading, and which the group has irrevocable elected at initial recognition to recognise in this category.
These are strategic investments and the Group considers this classification to be more relevant. Class of shares Percentage Holding
Name of company held 2021 2020
On disposal of these equity investments, any related balance within the FVOCI reserve is reclassified to retained
earnings. % %
The movement in investments in other financial assets are summarised as follows: Cathedrale Development Ltd* Ordinary shares 20.00 20.00
Level 1 Level 3 * The Company does not exercise any significant influence on the above company and, as such, has not accounted
DEM for this investment as an investment in associate.
(a) The Group Quoted Unquoted Total
(d) Other financial assets are denominated in the following currencies:
MUR’000 MUR’000 MUR’000
2021 THE GROUP THE COMPANY
At 1 July 40 372,449 372,489 2021 2020 2021 2020
Addition - 3,912 3,912 MUR’000 MUR’000 MUR’000 MUR’000
Translation difference - 2,550 2,550 Rupee 194,125 198,640 25,011 22,636
Disposals - (6,292) (6,292) US Dollar - 173,849 - 6,292
Fair value adjustment - 87,193 87,193 Euro 250,515 - - -
At 30 June 40 459,812 459,852 Ariary 15,212 - - -

459,852 372,489 25,011 28,928
(e) None of the financial assets are impaired.
238 239

16. LEASEHOLD RIGHTS AND LAND PREPAYMENTS 17. OTHER RECEIVABLES

Accounting policies Accounting policies
Leasehold land upfront payments to acquire long-term leasehold interest in property are treated as prepayments Other receivables are recognised initially at the amount of consideration that is unconditional, unless they contain
and are amortised over the period of the leases. significant financing components when they are recognised at fair value. They are subsequently measured at
amortised cost using the effective interest method, less loss allowance.
THE GROUP
THE GROUP
2021 2020
2021 2020
MUR’000 MUR’000
MUR’000 MUR’000
COST
Receivable from sale of land - 3,500
At 1 July - 785,726
Long-term deposits 32,338 23,228
Impact of IFRS 16 - (382,080)
Loans under Executive Share Scheme (Note (a)) 16,920 16,920
Adjusted balance - 403,646
Others - 2,015
Addition -
49,258 45,663
Write off* - (125,863)
Less: allowance for impairment loss - -
Transfer to right-of-use assets (Note 9 (b)) - (320,399)
49,258 45,663
Transfer to property, plant and equipment (Note 9(a)) - (42,004)
Transfer from current assets - 80,000
(a) Loans under Executive Share Scheme were granted to key executives where cash was advanced to certain
Translation difference - 4,620 individuals to acquire shares in the Company at market value at grant date. The terms of the scheme were
- - such that when the shares are disposed, the proceed is to be used to settle the loan advanced. The loan carries
interest of 3% which is payable half yearly in December and June. The interest for the year has been waived by
ACCUMULATED AMORTISATION the Board. The scheme has now been discontinued and replaced by the Phantom Share Option Scheme which
At 1 July - 251,049 does not significantly impact the financial statements.
Adjusted balance - 131,049
Prepayments release to operating expenses - -
Charge for the year - 36,406
Impairment charge - -
Transfer to right-of-use assets (Note 9 (b)) - (85,068)
Write off* - (80,334)
Translation difference - (2,053)
NET BOOK VALUE - -
At 30 June - -
*Management has assessed that an advance payment made to a lessor for the lease of a plot of land is not
recoverable anymore, hence the amount was written off during the year ended 30 June 2020.
240 241

18. INVENTORIES 19. TRADE AND OTHER RECEIVABLES

Accounting policies Accounting policies
Inventories are stated at the lower of cost and net realisable value. Cost is determined by the first-in and first-out Trade receivables are amount due from customers for goods sold in the ordinary course of business. If collection
realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as
and selling expenses. current assets. If not, they are presented as non-current asset. Trade receivables are recognised initially at the
amount of consideration that is unconditional unless they contain significant financing components, when they are
Costs incurred in bringing each product to its present location and condition are accounted for as follows: recognised at fair value. The Group holds trade receivables with the objective to collect the contractual cash flows
and therefore, measure them subsequently at amortised cost using the effective interest method. Detail about the
Raw materials - purchase cost on a weighted average cost basis
Group’s impairment policies and the calculation of the loss allowance is provided in note 45(a).
Finished goods and work-in-progress - cost of direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity but excluding borrowing costs. THE GROUP THE COMPANY
2021 2020 2021 2020
THE GROUP
MUR’000 MUR’000 MUR’000 MUR’000
2021 2020
Trade receivables 2,591,199 2,623,879 - -
MUR’000 MUR’000
Less: Loss allowance on receivables (Note 19(f)) (256,316) (336,809) - -
Raw materials (fair value less cost to sell) 1,248,386 1,375,669
2,334,883 2,287,070 - -
Work in progress (fair value less cost to sell) 651,087 703,839
Receivable from subsidiary companies (Note 44) - - 316,428 15,302
Finished goods (fair value less cost to sell) 1,121,157 1,030,735
Receivable from associated companies (Note 44) 27,961 19,763 - -
Other stock (fair value less cost to sell) 31,941 189,986
Receivable from related corporations (Note 44) 87,539 73,893 380 -
Food and beverages (fair value less cost to sell) 38,007 59,736
Export documentary remittances 1,632,865 1,628,367 - -
Operating supplies (fair value less cost to sell) 168,381 28,910
Other receivables and prepayments (Note 19(a)) 725,907 951,548 1,857 -
Spare parts (cost) 83,457 160,532
Advance payments 555,788 366,732 - -
Fabric and linen (cost) 15,359 14,374
Prepayments 246,969 152,243 118 -
Goods in transit (cost) 435,840 163,102
5,611,912 5,479,616 318,783 15,302
Less :
(a) Other receivables
Provision for impairment of inventories (30,999) -
Other receivables consist of:
Write offs (17,763) (309,652)
Taxes and grants 318,875 335,117 -
3,744,853 3,417,231
Deposits 16,260 48,083 - -
Others 390,772 568,348 1,857 -
The cost of inventories recognised as an expense is MUR 6.4Bn (2020: MUR 7Bn).
725,907 951,548 - -
Some of the inventories have been pledged as security for the borrowings of the Group.
Impairment of inventories The carrying amounts of trade and other receivables approximate their fair value as they are deemed short-term in
their nature and recoverable within 12 months.
Impairment on non-financial assets
The Group does not hold any collateral as security but for the hotels and resorts segment, there is an insurance
Cash cover against irrecoverable debts.
generating Reportable
unit/ Company segment Statements of Profit or loss The receivables from associated companies, related corporations and other receivables are neither past due
nor impaired.
2021 2020
MUR’000 MUR’000 The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable, net of
insurance cover.
Impairment and write offs charged
(b) Ageing of past due trade receivables but not impaired
- Textile segment: stocks Textile Mauritius 16,800 285,400
- Hotel segment: Inventories Retail operations Mauritius 4,705 24,252 THE GROUP
- Healthcare segment: consumables Healthcare Mauritius 27,257 - 2021 2020
48,762 309,652 MUR’000 MUR’000
Within 31 - 60 days 143,271 213,132
* Above impairment charges exclude the income tax impact Within 61 - 90 days 67,744 79,724
Over 90 days 129,369 455,092
340,384 747,948
The remaining balance of trade receivables is neither past due nor impaired.
242 243

19. TRADE AND OTHER RECEIVABLES (Cont’d) 19. TRADE AND OTHER RECEIVABLES (Cont’d)
(c) The carrying amounts of the Group’s trade and other receivables, excluding taxes and grants, advance payments, (g) In 2021, the impairment of trade receivables was assessed based on the expected credit loss model. Individual
prepayments and deposits are denominated in the following currencies: receivables which were known to be uncollectible were written off by reducing the carrying amount directly.
Taxes and grants, prepayments and advance payments are not financial assets and so are not subject to expected
THE GROUP credit loss under IFRS 9. The other receivables comprise mainly overnight borrowings held by the subsidiary bank,
which are repaid on the next day, hence no impairment was deemed necessary.
2021 2020
MUR’000 MUR’000 20. CASH AND CASH EQUIVALENTS
MUR 535,397 1,710,084
MGA 1,633,144 147,584 Accounting policies
USD 733,232 1,108,341 Cash and cash equivalents include highly liquid investments that are convertible to known amounts of cash and
EUR 350,586 393,338 which are subject to an insignificant risk of change in value. Such investments are normally those with less than
GBP 132,058 202,234 three months maturity from the date of acquisition.
ZAR 352,114 204,978
For the purposes of the statement of cash flows, cash and cash equivalents comprises cash and balances with
INR 581,874 651,999 banks and central banks excluding mandatory balances with central banks, loans to placements with banks having
Others 155,615 158,883 an original maturity of up to 3 months. Cash and cash equivalents are measured at amortised cost. Bank overdrafts
4,474,020 4,577,441 are shown within loans and borrowings in current liabilities on the statement of financial position.

(d) Impairment of trade receivables
2021 2020 2021 2020
The expected loss rates are based on the payment profiles of clients over a period of 36 months before
01 July 2020, or 01 July 2021 respectively and the corresponding historical credit losses experienced within MUR’000 MUR’000 MUR’000 MUR’000
this period. The historical loss rates are adjusted to reflect current and forward-looking information on Cash in hand 1,715,540 1,635,849 - -
macroeconomic factors affecting the ability of the customers to settle the receivables. The Group has identified
the GDP, inflation and unemployment rate of Mauritius, India, Uganda and Madagascar to be the most relevant Foreign currency notes and coins 134,792 121,507 - -
factors, and accordingly has adjusted the historical loss rates based on expected changes in these factors. Balances with the Central Bank 3,029,100 2,868,414 - -
(e) As of 30 June 2021, trade and other receivables of MUR 256M (2020: MUR 337M) were impaired. The individually Balances due in clearing 22,899 18,312 - -
impaired receivables relate to customers, which are in unexpected difficult situation. The ageing of these receivables Balances with banks 2,747,510 3,057,186 6,744 13,310
are as follows:
Placements 2,281,334 538,581 53 12,339
THE GROUP 9,931,175 8,239,849 6,797 25,649
30 June 2021 Current Within 31 Within 61 Over 90 Total Broken down as follows:
- 60 days - 90 days days Banking segment 7,376,395 6,823,706 - -
Expected credit loss rate (%) 0.26% 1.67% 3.90% 59.86% 9.89%
Non-banking segment 2,554,780 1,416,143 6,797 25,649
Gross carrying amount (MUR’ 000) 1,764,603 273,494 149,811 403,291 2,591,199
9,931,175 8,239,849 6,797 25,649
Loss allowance (MUR’ 000) 4,619 4,555 5,847 241,295 256,316
30 June 2020
Expected credit loss rate (%) 0.45% 0.54% 12.72% 34.60% 12.84% The balances with the central bank relate to cash held at Central Bank of Madagascar for BNI Madagascar SA.
Gross carrying amount (MUR’ 000) 1,248,076 346,567 122,757 906,479 2,623,879
Loss allowance (MUR’ 000) 5,669 1,862 15,617 313,661 336,809 21. ASSETS AND LIABILITIES HELD FOR SALE
Accounting policies
(f) The closing loss allowances for trade and other receivables reconcile to the opening loss allowances as follows:
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a
2021 sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at
the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets,
MUR’000 assets arising from employee benefits, financial assets and investment property that are carried at fair value and
Total contractual rights under insurance contracts, which are specifically exempt from this requirement.
At 01 July 2019 152,542 An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs
Amounts written off (46,007) to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess
of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the
Provision for the year 217,583
sale of the non-current asset is recognised at the date of derecognition.
Translation reserve 12,691
At 30 June 2020 336,809 Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other
expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.
Amounts written off (144,877)
Provision for the year 65,313 Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance sheet.
Translation reserve (929)
At 30 June 2021 256,316 The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the
balance sheet.
244 245

21. ASSETS AND LIABILITIES HELD FOR SALE (Cont’d) 22. LOANS AND ADVANCES TO CUSTOMERS
THE GROUP Accounting policies
2021 2020 The Group only measures loans and advances and other financial investments at amortised cost if both of the
following conditions are met:
MUR’000 MUR’000
The movement for the year is as follows: • The financial asset is held within a business model with the objective to hold the financial assets in order to
collect contractual cash flows;
At 1 July 131,969 12,726
• The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments
Disposal (10,117) -
of principal and interest (SPPI) on the principal amount outstanding.
Transfer from investment in associates (Note 14) 191,226 99,137
Loans and advances to customers are non-derivative financial assets with fixed or determinable payments and are
Transfer from discontinued operations (Note (b)) 1,110,603 -
recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition,
Fair value adjustments (20,106) 20,106 loans and receivables are measured at amortised cost using the effective interest method.
Others (102) -
(a) 2021 2020
As at 30 June 1,403,473 131,969
MUR’000 MUR’000
Retail 2,666,639 2,843,036
(a) Assets held-for-sale consist of land, which was earmarked for sale by Ferney Limited in 2020 and sold in 2021.
Civil servants 2,033,219 -
During the years ended 30 June 2021 and 2020, the Group entered into binding agreements with interested
buyers for the sale of investments in Hygeia Nigeria Limited and Hygeia HMO Limited respectively. As the sale of Professional – SME 857,089 557,051
these investments is deemed highly probable, these have been reclassified to assets held for sale. The sale of the Mid-Cap 4,154,335 3,366,538
investment in Hygeia Nigeria Limited was finalised in August 2021. The sale of Hygeia HMO Limited is currently in
Institutional 100,169 545,496
the process of finalisation.
Corporate customers 11,454,398 10,421,364
(b) The following assets and liabilities were reclassified as held for sale in relation to the discontinued operations
as at June 30, 2021: 21,265,849 17,733,485
Less allowances for credit impairment:
2021
Individual (372,323) (305,882)
MUR’000
Civil servants (30,229) -
Assets classified as held for sale
Professional – SME (259,019) (254,062)
- Property, plant and equipment (Note 9(a) 760,762
Mid-Cap (413,208) (346,076)
- Intangible assets (Note 11) 2,617
Institutional (2,936) (3,341)
- Deferred income tax assets (Note 30(b)) 2,248
Corporate customers (320,021) (215,473)
- Inventories 270,696
(1,397,736) (1,124,834)
- Trade and other receivables 64,233
19,868,113 16,608,651
- Cash and cash equivalents 10,047
Less: Non-current portion (6,810,443) (5,544,688)
Total assets classified as held for sale 1,110,603
Current portion 13,057,670 11,063,963
2021 (b) Remaining terms to maturity

MUR’000 Within one year 13,057,670 11,063,963
Liabilities directly associated with assets classified as held for sale Over 1 year and up to 5 years 6,810,443 4,087,894
- Deferred income tax liabilities (Note 30(b)) 26,861 Over 5 years - 1,456,794
- Retirement benefit obligations (Note 31(b)(i) 22,801 19,868,113 16,608,651
- Trade and other payables 135,040 (c) Allowance for credit impairment
- Fair value liability on forward contracts 942 At July 1 1,124,834 774,686
- Borrowings 374,952 Provision for credit impairment for the year (Note 7(b)(ii) 220,535 303,827
- Current income tax liabilities 161 Foreign currency translation adjustment 52,367 46,321
Total liabilities associated with assets classified as held for sale 560,757 At 30 June 1,397,736 1,124,834
Details of discontinued operations in relation to the above are in Note 47(b).
246 247

23. LOANS TO BANKS 24. INVESTMENTS IN SECURITIES (Cont’d)

Accounting policies THE GROUP
The Group only measures loans and advances and other financial investments at amortised cost if both of the 2021 2020
following conditions are met:
MUR’000 MUR’000
• The financial asset is held within a business model with the objective to hold the financial assets in order to Non-current 3,753,001 2,909,918
collect contractual cash flows;
Current 2,455,016 1,802,616
• The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments
Remaining terms to maturity
of principal and interest (SPPI) on the principal amount outstanding.
Within one year 2,455,016 1,802,616
THE GROUP Over 1 year and up to 5 years 3,753,001 2,909,918
(a) 30-Jun 30-Jun 6,208,017 4,712,534
2021 2020
MUR’000 MUR’000 The investments in securities are denominated in Ariary and Ugandan Shillings
At 1 July 40,297 413,309 The current securities denominated in Ariary have coupon rates ranging from 7.00% to 13.15% (2020: 9.80%
Net movement in loans to banks (40,304) (373,059) to 13.55%).
Allowance for impairment 7 47 The securities denominated in Ugandan Shillings have coupon rates ranging from 11.5% to 12.2%.
At 30 June - 40,297
The non-current securities have coupon rates ranging from 7.90% to 10.30% (2020: 6.30% to 13.15%). None of the
Loans to banks - non-current - - financial assets are either past due or impaired.
Loans to banks - current - 40,297 (a) Allowance for credit impairment
- 40,297
2021 2020
Remaining terms to maturity
MUR’000 MUR’000
Within one year - 40,297
At July 1, (918) (584)
Over 1 year and up to 5 years - -
Provision for credit impairment for the year (Note 7(b)(ii)) (1,413) (288)
- 40,297
Foreign currency translation adjustment (90) (46)
Allowance for credit impairment
At June 30, (2,421) (918)
At July 01 (7) (54)
Provision for credit impairment (Note 7(b)(ii)) 7 47
At June 30 - (7) 25. STATED CAPITAL AND TREASURY SHARES
Accounting policies
24. INVESTMENTS IN SECURITIES Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are
shown in equity as deduction, net of tax, from proceeds. Where the Company purchases its equity share capital
Accounting policies (treasury shares), the consideration paid, including any directly incremental costs (net of income taxes), is deducted
Investments in securities have been assessed as having a business model of holding to collect contractual cash flows from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. When such
comprising solely of payments of principal and interest. Accordingly, these instruments have been classified at shares are subsequently reissued, any net consideration received is included in equity attributable to the Company’s
amortised cost under the effective interest method. equity holders.
THE GROUP THE GROUP AND THE COMPANY
2021 2020 Stated Treasury
MUR’000 MUR’000 Capital Shares Total
At 1 July 4,712,534 4,498,836 MUR’000 MUR’000 MUR’000
Additions 2,655,345 163,658 At 1 July 2019 5,099,561 (149,347) 4,950,214
Matured during the year (1,356,939) (216,135) Issue of shares (Note 1) 36,855 119,641 156,496
Provision for credit impairment for the year (Note (a)) (1,413) (288) Issue of shares to executives (Note 2) - 10,221 10,221
Translation adjustment 198,490 266,463 Issue of shares on exercise of rights (Note 3) 3,163 1,480 4,643
6,208,017 4,712,534 At 30 June 2020 5,139,579 (18,005) 5,121,574

Issue of shares on exercise of rights (Note 4) 1,415 3,381 4,796
At 30 June 2021 5,140,994 (14,624) 5,126,370
248 249

25. STATED CAPITAL AND TREASURY SHARES (Cont’d) 26. REDEEMABLE RESTRICTED A SHARES
THE GROUP AND THE COMPANY THE GROUP AND THE COMPANY
Stated Treasury Redeemable
Capital Shares Total
Restricted A Number of
Number of Number of Number of
Shares Shares
shares shares shares
MUR’000 000’s
‘000 ‘000 ‘000
At 30 June 2020 and 2021 39,233 3,008,887
At 1 July 2019 1,689,901 (29,627) 1,660,274
Issue of shares (Note 1) - 24,028 24,028
At a Special Meeting held on 30th October 2013, shareholders approved that the share capital of the company be
Issue of shares to executives (Note 2) - 1,128 1,128 reorganised into 2 classes of shares, as follows:
Issue of shares on exercise of rights (Note 3) - 1,322 1,322
- Existing Ordinary Shares which hold all economic rights including the right to dividends and voting rights.
At 1 July 2020 1,689,901 (3,149) 1,686,752
Issue of shares on exercise of rights (Note 4) - 693 693 Shareholders of the Company had the option for every Ordinary Share held by them after the share split, to choose
At 30 June 2021 1,689,901 (2,456) 1,687,445 between receiving:
(i) Either a cash dividend of 5 cents;

The shares have no par value. All stated capital is fully paid. (ii) Or 4 ‘Redeemable Restricted A Shares’.
Note 1 The rights attached to the Redeemable Restricted A Shares are as follows:
On 02 July 2019, CIEL Limited increased its stake in Ciel Textile Ltd from 92.92% to 100% and, thus, (i) The right to vote at general meetings and, on a poll, to cast one vote for each share held;
24,027,946 ordinary shares of CIEL Limited were issued.
(ii) The right to participate in a rights issue together with the holders of Ordinary Shares on the condition that the
Note 2 holders of each class of shares shall be entitled to subscribe to Shares of that class only;
In June 2018, an amount of MUR 3,890K net of tax worth of CIEL Limited ordinary shares was granted to selected (iii) No right to any distribution;
staff members of the Group. Based on the share price as at 30 June 2018 of MUR 7.08, 549,417 shares were issued
in 2019. (iv) No right to any surplus assets of the company in case of winding up;
In June 2019, an amount of MUR 3,675K net of tax worth of CIEL Limited ordinary shares was granted to selected (v) No right to be transferred except with the consent of the holders of at least 75% of the shares of that class.
staff members of the Group. Based on the share price as at 30 June 2019 of MUR 7.08, 578,772 shares were issued
in 2020. The Redeemable Restricted A Shares shall be redeemed at the option of the company for no consideration,
should the holders either directly or indirectly through successive holding entities, in aggregate, hold less than 10%
Note 3 of the issued Ordinary Shares in the capital of the Company.
During the year 2020, executives of the Group have exercised their rights to acquire 1,321,553 of CIEL Limited
ordinary shares under the Share Appreciation Rights Scheme.
Note 4
During the year 2021, executives of the Group have exercised their rights to acquire 693,434 of CIEL Limited ordinary
shares under the Share Appreciation Rights Scheme.
250 251

27. OTHER COMPREHENSIVE INCOME 27. OTHER COMPREHENSIVE INCOME (Cont’d)

(a) Reserves The Group
(i) Revaluation surplus

Share
Translation appreciation The revaluation surplus relates to the revaluation of property.
Revaluation Hedging of Foreign Other Actuarial rights
The Group Surplus Fair value Reserve Operations Reserves Reserves scheme Total (ii) Fair value reserve
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 Fair value reserve comprises the cumulative net change in the fair value of financial assets at fair value through
Balance at 1 July 2020 3,813,366 53,990 (62,598) (135,042) 259,348 (391,369) 5,267 3,542,962 other comprehensive income (FVOCI) that has been recognised in other comprehensive income until investments
are derecognised or impaired.
Other comprehensive
income for the year 560,645 67,792 (200,662) 201,987 - 67,225 - 696,987 (iii) Hedge reserve
Issue of shares - - - - - - (4,796) (4,796) The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow
Transfer of gain on hedging instruments related to hedged transactions that have not yet occurred.
disposal of equity
investments at fair (iv) Translation of foreign operations
value through other The translation reserve comprises all foreign currency difference arising for the translation of the
comprehensive financial statements of foreign operation.
income to retained
earnings 65,978 - - - - - - 65,978 (v) Other reserves
Other movements 40,160 - - - - - - 40,160
Other reserves comprise of the banking reserve which comprise provisions in line with the Bank of Mauritius
Balance at 30 June macroprudential guidelines.
2021 4,480,149 121,782 (263,260) 66,945 259,348 (324,144) 471 4,341,291
(vi) Actuarial gains/(losses)
Balance at 1 July 2019 3,137,630 42,558 (16,835) (304,987) 218,714 (266,234) 19,450 2,830,296
The actuarial gains/(losses) reserve represents the cumulative remeasurement of defined benefit obligation
Other comprehensive
recognised.
income for the year 675,736 11,432 (45,763) 169,945 - (125,135) - 686,215
Issue of shares - - - - - - (14,183) (14,183) The Company
Fair Value Fair Value
Other movements - - - - 40,634 - - 40,634 Reserve Reserve
Balance at 30 June 2021 2020
2020 3,813,366 53,990 (62,598) (135,042) 259,348 (391,369) 5,267 3,542,962
MUR’000 MUR’000
Fair value adjustment 5,419,624 (1,727,285)
Other movements are mainly made up of:
(i) Statutory reserve, which comprises the accumulated annual transfer of 15% of the net profit for the year in (i) Fair value reserve
line with Article 41 of Ordinance n° 88-005 dated 15th April 1988 pertaining to the regulations applicable to the
banking sector in Madagascar. Fair value reserve comprises the cumulative net change in the fair value of financial assets at fair value through
other comprehensive income (FVOCI) that has been recognised in other comprehensive income until investments
(ii) Movements in the General Banking Reserve is at the discretion of BNI Madagascar, and the shareholders choose are derecognised or impaired.
to increase the reserve by the profit for the year net of dividends payable and the amount transferred to
statutory reserve. (b) Convertible bonds
(iii) Movement of MUR 65M relates to transfer of revaluation losses from revaluation reserve to retained earnings THE GROUP THE COMPANY
on disposal of an associate.
2021 2020 2021 2020
MUR’000 MUR’000 MUR’000 MUR’000
At 1 July - - - -
Additions 2,275,000 - - -
Front-end fee paid (12,300) - - -
Front-end fee transferred to prepayment 3,600 - - -
Legal fees (1,508) - - -
At 30 June 2,264,792 - - -
During the financial year ended 30 June 2021, the SUN Group within the hotels and resorts segment, through two of
its subsidiaries namely Long Beach Resort Ltd and Anahita Hotel Limited, contracted with the Mauritius Investment
Corporation Ltd (“MIC”), a wholly owned subsidiary of the Bank of Mauritius for the issue redeemable convertible
bonds for a total amount of MUR 3.1 billion comprising of 310 bonds of MUR 10 million each.
252 253

27. OTHER COMPREHENSIVE INCOME (Cont’d) 28. SHARE APPRECIATION RIGHTS SCHEME AND SHARE BASED SCHEME
(b) Convertible bonds (Cont’d) Accounting policies
One of the main objectives of the MIC is to provide financial support to companies impacted by the Covid-19 (a) Share Appreciation Rights Scheme
pandemic and in particular to the tourism sector which has been impacted the most due to the full border closure.
The MIC support is in the form of redeemable convertible bonds to companies which require urgent working capital The Group operates a Share Appreciation Rights Scheme (SARS) for selected executives employed by one of the
to sustain their viability. subsidiaries of the CIEL Group. Under the Scheme, selected executives are granted a number of rights based on their
current salary. The rights will be settled by CIEL Limited issuing shares to the holder of the rights, equivalent to the
Key terms and conditions of the funding arrangements are as follows: difference between the exercise price and the grant price per share, multiplied by the number of SARS exercised.
CIEL Ltd may buy back shares from the market or utilise its treasury shares. The rights vest after three years from grant
• The bonds shall be issued in four equal tranches. date and lapse after seven years from grant date. The Scheme operated previously under ex-CIEL Investment Ltd
before the amalgamation with Deep River Investment Ltd in January 2014. Following the amalgamation and the
• The maturity date is 9 years from first disbursement of the first tranche of the subscription proceeds, that is,
issue of 344,827,586 new no par value ordinary shares by way of private placement by CIEL Ltd, the number of SARS
on 14 December 2029.
originally granted and the grant price of the underlying shares were adjusted accordingly. The last issue of the SARS
• The conversion rate has been pre-determined prior to the subscription. dates back to April 2013. The said scheme has been brought to an end since that date. The last SARS were exercised
last year and no SARS were left as at 30 June 2020.
• All outstanding bonds will be converted into ordinary shares at a pre-agreed rate and price on maturity date.
The fair value of the employee services received in exchange for the grant of the options is recognised as an
• The interest rates range between 3.00% to 3.25% p.a. over the duration of the bonds (from issue date to the expense. The total amount to be expensed over the vesting period is determined by reference to the fair value
earlier of the redemption date or the conversion date). The interest is payable on the last day of each interest of the options granted, excluding the impact of any non-market vesting conditions (for example, profitability and
period. On maturity date, any unpaid capital and interest is converted into ordinary shares in accordance with sales growth targets). Non-market vesting conditions are included in assumptions about the number of options
the predetermined conversion price. that are expected to become exercisable. At the end of each reporting period, the entity revises its estimates of
the number of options that are expected to become exercisable. It recognises the impact of the revision of original
• The conversion price is subject to certain adjustments such as capitalisation of profit or reserves, capital estimates, if any, in profit or loss and a corresponding adjustment to equity over the remaining vesting period.
distribution, rights issues, share split, amongst others.
The proceeds, if any, received net of any directly attributable transaction costs are credited to stated capital when
• Redemption of the bonds shall be at the option of the issuer. The issuer may redeem some or all the bonds, the options are exercised.
any time prior to the maturity date. The option price shall be determined as follows:
Movements in the rights outstanding:
- if redemption happens before the 4th anniversary of the first subscription, the redemption price shall be the
nominal amount,
- if redemption happens after the 4th anniversary of the first subscription, the redemption amount shall be Number of
100.5% of the nominal amount. Grant price rights
Granted - in respect of financial year March 2008 6.95 4,332,086
- in respect of financial year March 2009 4.36 7,049,710
32,488,526
254 255

28. SHARE APPRECIATION RIGHTS SCHEME AND SHARE BASED SCHEME (Cont’d) 28. SHARE APPRECIATION RIGHTS SCHEME AND SHARE BASED SCHEME (Cont’d)
(a) Share Appreciation Rights Scheme (Cont’d) (a) Share Appreciation Rights Scheme (Cont’d)
The fair value of the rights was determined using the Black Scholes model, the assumptions of the model is
Number Number tabled below:
of rights of rights
Total granted - 32,488,526 Grant year 2014 2013 2012 2011 2010
Rights exercised during 2015 Share Price at Grant date (in Rs) 3.75 4.09 4.90 5.44 4.36
- relating to financial year March 2009 (1,171,533) - Vesting Period (in Years) 3 3 3 3 3
- relating to financial year March 2011 (700,000) - Expected Volatility 36% 37% 38% 39% 40%
(1,871,533) Expected Dividend Yield 2.2% 2.5% 2.0% 2.5% 2.5%
Rights exercised during 2016 Risk Free Rate 4.90% 5.50% 5.25% 5.75% 6.50%
- relating to financial year March 2009 Value of SARS (in MUR) 0.96 1.07 1.34 1.50 1.26
- relating to financial year March 2010 (937,534) Fair value of rights issued (in MUR’000) 5,821 5,621 5,590 8,472 8,849
- relating to financial year March 2011 (366,912) Amortised SARS value 2,425 4,216 5,590 8,472 8,849
- relating to financial year March 2012 (400,000)
(7,582,623) The fair value of the SARS issued is amortised over a 3-year period, i.e. between the grant date and vesting date.
Rights lapsed and not exercised in 2016 The volatility assumptions measured at the standard deviation of the expected share prices is based on statistical
analysis of historical share prices.
- relating to financial year March 2008 at MUR 2.18 per right (4,332,086) -
(4,332,086) (b) Share Based Scheme - equity settled
Rights exercised during 2017 In July 2014, an incentive scheme was set up in order to remunerate some key executives of the Group. The annual
- relating to financial year March 2010 (4,710,038) - entitlement is payable 50% in cash and 50% in terms of shares in CIEL Limited. Upon award, the shares are vested
immediately but are issued over a period of two years.
- relating to financial year March 2012 (625,000) -
The entitlement for the years ended 30 June 2021 and 2020 is as follows:
(5,335,038)
Rights exercised during 2018 2021 2020
in respect of financial year March 2011 (3,092,611) - MUR’000 MUR’000
in respect of financial year March 2012 (354,662) - Cash settlement 4,076 943
(3,447,273) Equity settlement 4,076 943
Rights exercised during 2019 8,152 1,886
- in respect of financial year March 2012 (3,871,884)
- in respect of financial year March 2013 (200,000) The entitlement relating to 2021, based on the average share price as at 30 June 2020 of MUR 5.87, represents
693,634 shares which will be issued in June 2022 and June 2023.
(4,071,884)
Rights exercised during 2020 The entitlement relating to 2020, based on the share price as at 30 June 2020 of MUR 3.48, represents
270,977 shares which will be issued in June 2021 and June 2022.
- in respect of financial year 2013 (5,848,089)
- 29. BORROWINGS
Accounting policies
Borrowings are recognised initially at fair value being their issue proceeds net of transaction costs incurred.
Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction
costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective
interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of
the liability for at least twelve months after the end of the reporting period.
256 257

29. BORROWINGS (Cont’d) 29. BORROWINGS (Cont’d)
THE GROUP THE COMPANY SUN Limited
2021 2020 2021 2020 No of notes

Date of issue
Current MUR’000 MUR’000 MUR’000 MUR’000 Maturity Coupon rate issued MUR’000
Restated 2016 5 years 6.00% 814,756 814,504
Bank overdrafts 739,197 1,355,605 84,557 - 2016 5 years 3.15% 322,000 321,900
Bank loans repayable by instalments 554,311 870,765 - - 2016 7 years 6.50% 958,276 956,128
Fixed and floating rate secured notes (Note (b)) 1,590,092 2,863,811 33,880 330,802 2016 7 years 3.55% 336,024 335,271
Cash at call with non-subsidiaries 13,496 10,072 4,042 3 2020 1.5 years 5.99% 26,868 268,559
Cash at call with related parties (Note 44) - - 96,239 - 2020 1.5 years 6.68% 20,739 154,149
Other loans (Note (d)) 2,783,448 2,039,222 - - 2020 2 years 7 months 1.86% 8,000 397,587
Money market line - 441,635 - 150,000 2020 4 years 7 months 2.25% 8,500 421,344
Export bills and vendors’ financing 1,417,273 934,229 - - 2020 6 years 7 months 2.43% 8,500 420,253
Import loans 1,144,993 1,587,758 - - 2020 9 years 7 months 3.50% 5,000 246,218
8,242,810 10,103,097 218,718 480,805 4,335,913
Non-current
Bank loans repayable by instalments (Note (c)) 4,827,731 3,092,457 - - Due to the full border closure in Mauritius in this financial year, the normal operations of the resorts in SUN Limited
were suspended with only minor business from locals and quarantine. Thus, one of the covenants in respect of a
Fixed and floating rate secured notes (Note (b)) 6,279,091 7,303,484 2,984,635 2,487,637
bond issue and an existing bank loan at two of SUN Limited’s subsidiaries were breached due to inadequate revenues
Other loans - 239,487 - - and waivers were obtained accordingly prior to the end of the reporting date from the note holders.
Export bills and vendors’ financing - 7,451 - - CIEL Finance Limited
11,106,822 10,642,879 2,984,635 2,487,637
The fixed rate secured notes include an amount of MUR 500M taken in September 2019 by the Company.
Total borrowings 19,349,632 20,745,466 3,203,353 2,968,442 The break-down of the notes based on maturity and interest rate broken down is as follows:
Date of issue No of notes

(a) The bank borrowings are secured by fixed and floating charges over the assets of the Group. Maturity Coupon rate issued MUR’000
(b) Break-down of the nominal value of the notes based on maturity and coupon rate is as follows: 27-Sep-19 5 years 4.50% 150,000 150,000
CIEL Limited 27-Sep-19 6 years 4.62% 175,000 175,000

27-Sep-19 7 years 4.76% 175,000 175,000
Date of issue No of notes
500,000
Maturity Coupon rate issued MUR’000
2018 5 years 4.00% 3,800 380,102
2018 7 years 4.98% 3,000 300,000
2018 10 years 5.45% 2,900 290,000
2019 7 years 4.29% 3,000 300,000
2019 7 years 4.95% 1,000 100,000
2019 8 years 4.53% 3,000 300,000
2019 8 years 5.15% 1,000 100,000
2019 10 years 5.45% 880 88,000
2019 10 years 4.95% 120 12,000
2019 15 years 5.60% 1,000 100,000
2020 10 years 5.45% 530 530,000
2021 10 years 5.45% 500 500,000
3,000,102
258 259

29. BORROWINGS (Cont’d) 29. BORROWINGS (Cont’d)

(c) Non-current bank loans repayable by instalments can be analysed as follows: - (e) The effective interest rates at the end of the reporting period were as follows:
THE GROUP THE GROUP THE COMPANY

2021 2020 2021 2020 2021 2020
MUR’000 MUR’000 % % % %
- after 1 year and before 2 years 1,146,391 583,240 Mauritian rupee
- after 2 years and before 3 years 858,525 626,261 Bank overdrafts 2.95 - 4.10 4.05 - 6.25 4.10 5.75
- after 3 years and before 5 years 1,608,910 1,229,477 Bank loans repayable by instalments 2.55 - 3.85 3.85 - 4.65 - -
- after 5 years 1,213,905 653,479 Fixed rate multicurrency notes 1.86 – 6.68 3.40 - 5.83 4.00 - 5.60 3.40 - 5.83
Expert bills and vendors’ financing 4.10 7.65 - 8.00 - -
4,827,731 3,092,457
Money market line 2.50 - 2.80 4.10 - 5.75 2.50 - 2.80 5.75
US Dollar
(d) Other loans
Bank overdrafts Libor + 1.5%/+ Libor + 1.5/+ - -
Other loans include an overnight facility taken in June 2021 from the Central Bank of Madagascar amounting to 2.50/+3.25 2.50/+3.25
MGA 200bn and bearing a fixed coupon rate of 6.16%. They also include a loan contracted by BNI Madagascar in June Bank loans repayable by instalments 2.00 - 3.90 4.37 - 7.33 - -
2020 with Central Bank of Madagascar for MGA 42bn which has a term of 15 months and bears a fixed coupon rate
Finance lease obligations - 4.36 - -
of 4.97% per annum.
Export bills and vendors’ financing Libor + 1.5/+ 2.4 Libor + 1.5/+ 2.4 - -
All borrowings are denominated in MUR except for the below:
THE GROUP THE GROUP THE COMPANY

2021 2020 2021 2020 2021 2020
MUR’000 MUR’000 % % %
(i) Proparco loans denominated in Euros - 227,011 Euro
(ii) Social security authority denominated in Ariary - 10,490 Bank overdrafts Euribor + 1.5%/+ 2.5% Euribor + 1.5%/+ 2.50 - -
(iii) Overnight facility 2,180,000 - Bank loans repayable by instalments - 3.93 - -
(iv) Central Bank of Madagascar 457,800 - Expert bills and vendors’ financing Euribor + 1.5%/+ 2.4% Euribor + 1.5%/+ - -
2.40
2,637,800 237,501
Indian Rupee
Repayable:
Bank overdrafts 8.10 - 8.70 8.10 - 8.70 - -
Within one year 2,783,448 2,039,222
Expert bills and vendors’ financing 8.10 - 8.70 8.10 - 8.70 - -
After one year but before two years - 238,045
After two years but before three years - 578
(f) The carrying amounts of the borrowings are denominated in the following currencies:
After three years but before five years - 864
After five years - - THE GROUP THE COMPANY
2,783,448 2,278,709 2021 2020 2021 2020
MUR’000 MUR’000 MUR’000 MUR’000
Rupee 7,984,216 8,002,070 3,203,354 2,968,442
Euro 5,104,429 6,149,880 - -
US dollars 2,335,580 3,520,463 - -
UK Pound 378,389 351,023 - -
INR 635,789 389,603 - -
Ariary 2,637,800 2,037,343 - -
Others 273,429 295,594 - -
19,349,632 20,745,976 3,203,354 2,968,442
The carrying amounts of borrowings are not materially different from their fair values.
The bills discounted and the import loans are secured by fixed and floating charges over the assets of the CIEL
Textile Limited.
260 261

29. BORROWINGS (Cont’d) 30. DEFERRED INCOME TAXES (Cont’d)

Accounting policies (Cont’d) Accounting policies (Cont’d)
(g) The carrying amounts of assets pledged as security for current and non-current borrowings are: Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against
which deductible temporary differences can be utilised.
(j) Assets pledged as security (Cont’d)
For the purposes of measuring deferred tax liabilities and deferred tax assets for investment properties that are
THE GROUP THE COMPANY measured using the fair value model, the carrying amounts of such properties are presumed to be recovered entirely
through sale, unless the presumption is rebutted. The presumption is rebutted when the investment property is
2021 2020 2021 2020 depreciable and is held within a business model whose objective is to consume substantially all of the economic
MUR’000 MUR’000 MUR’000 MUR’000 benefits embodied in the investment property over time, rather than through sale.
Non-current assets Deferred income taxes are calculated on all temporary differences under the liability method at the rate of 17%
Fixed and floating charge (2020 - 17%).
Property, plant and equipment 21,811,113 20,888,707 - - (a) There is a legally enforceable right to offset current tax assets against current tax liabilities and deferred income
Right-of-use assets 2,398,036 2,609,717 - - tax assets and liabilities when the deferred taxes relate to the same fiscal authority. The following amounts are
shown in the statement of financial position:
Investment properties 2,943,829 2,008,060 - -
Intangible assets 72,704 90,106 - - THE GROUP
Derivatives - 7,746 - - Restated
Investments in subsidiaries 5,391,279 4,084,699 3,500,628 2,437,353 2021 2020
Investments in joint ventures 1,854,517 1,803,258 - - MUR’000 MUR’000
Investments in associates 416,198 728,873 - - Deferred income tax liabilities 1,359,649 1,487,782
Investments in other financial assets 420,894 328,023 - -
Deferred income tax assets (419,361) (427,768)
Deposit on investments 14,772 7,304 - -
940,288 1,060,014
Leasehold rights and land prepayments - 230,530 - -
Non-current receivable 16,920 22,435 - -
Deferred income tax assets are recognised for tax losses carry-forward to the extent that the realisation of the
Derivative financial instruments - - - - related tax benefit through future taxable profit is probable.
First mortgage - Deferred income tax assets arise from the Textile, Healthcare and Hotel segments. The former two segments are
Freehold land and buildings - 2,718,549 - - profitable and hence the deferred income tax assets are deemed recoverable. The Hotel segment has made an
assessment on the recoverability of its deferred income tax assets and concluded that these will be recoverable
Investment properties - - - -
using the estimated future taxable income based on the approved business plans and budgets for the subsidiaries.
Total non-current assets pledged as security 35,340,262 35,528,007 3,500,628 2,437,353
At the end of the reporting period, the Group had unrecognised deferred tax assets of MUR 192M
Current assets (2020 – MUR 220M).
Fixed and floating charge
(b) The movement on the deferred income tax account is as follows:
Inventories 3,744,850 3,417,232 - -
Trade and other receivables 3,308,536 3,236,444 - - THE GROUP
Cash and cash equivalents 1,700,169 1,287,167 - - Restated
Floating charge 2021 2020
Property, plant and equipment - - - - MUR’000 MUR’000
Investment in other financial assets 2,166 6,180 - - At 1 July
Trade and other receivables 16,082 37,287 - - - As previously stated 1,060,014 1,046,473
Cash and cash equivalents 289,616 131,873 - - - Effect of prior year adjustments (Note 46) - 15,803
Total current assets pledged as security 9,061,419 8,116,183 - - At 1 July, as restated 1,060,014 1,062,276
30. DEFERRED INCOME TAXES
Underprovision/(Overprovision) of deferred tax in previous years (Note 35) 6,398 (2,218)
Accounting policies Translation difference 3,575 2,431
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the Charged/(Credited) to profit or loss (Note 35) (256,212) (49,151)
tax bases of assets and liabilities and their carrying amounts in the financial statements. However, if the deferred (Credited)/Charged to other comprehensive income 151,126 103,473
income tax arises from initial recognition of an asset or liability in a transaction, other than a business combination,
that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. Transfer to assets/liabilities classified as held for sale (Note 21(c)) (24,613) -
At 30 June 940,288 1,060,014
Deferred income tax is determined using tax rates that have been enacted or substantively enacted by the end of
the reporting period and are expected to apply in the period when the related deferred income tax asset is realised
or the deferred income tax liability is settled.
262 263

30. DEFERRED INCOME TAXES (Cont’d) 30. RETIREMENT BENEFIT OBLIGATIONS

Accounting policies (Cont’d) Accounting policies
(c) The movement in deferred tax assets and liabilities during the year, without taking into consideration the Defined benefit plans
offsetting of balances within the same fiscal authority, is as follows:
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans
define an amount of pension benefit that an employee will receive on retirement usually dependent on one or more
Accelerated
factors such as age, year of service and compensation.
Tax Revaluation of
The Group Depreciation Properties Total The liability recognised in the statement of financial position in respect of defined benefit pension plans is
Deferred tax liabilities MUR’000 MUR’000 MUR’000 the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit
At 01 July 2019 – as previously stated 870,165 682,047 1,552,212 credit method.
Effect of prior year adjustments 15,803 - 15,803
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses arising from experience
At 01 July 2019 – as restated 885,968 682,047 1,568,015 adjustments and changes in actuarial assumptions, the return on plan assets (excluding interest) and the effect of
Reclassification 3,323 (3,323) - the asset ceiling (if any, excluding interest) is recognised immediately in other comprehensive income in the period
in which they occur. Remeasurements recognised in other comprehensive income shall not be reclassified to profit
Under/Over provision (2,218) - (2,218) or loss in subsequent periods.
Translation difference 8,493 15,238 23,731
The Group determines the net interest expense/(income) on the net defined benefit liability/(asset) for the period
(Credited)/Charged to profit or loss (28,396) 39,583 11,187 by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period
to the net defined benefit liability/(asset), taking into account any changes in the net defined liability/(asset) during
Charged to other comprehensive income - 140,364 140,364
the period as a result of contributions and benefits. Interest expense/(income) is recognised in profit or loss.
At 30 June 2020 – as restated 867,170 873,909 1,741,079
Service costs comprising current service cost, past service cost as well as gains and losses on curtailments and
Under/Over provision 1,319 (431) 889 settlements are recognised immediately in profit or loss.
Transfer to Assets classified as held for sale (44,808) - (44,808)
CIEL Textile Limited, CIEL Corporate Services Ltd, C-Care (Mauritius) Limited and Sun Limited, subsidiary companies
Translation difference 7,972 9,833 17,805 of CIEL Limited, contribute to a defined benefit plan for certain employees.
(Credited)/Charged to profit or loss 22,448 (59,535) (37,087)
Defined contribution plans
Charged to other comprehensive income - 112,166 112,166
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity.
At 30 June 2021 854,101 935,942 1,790,044 The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the current and prior periods.
Retirement Tax Losses
Payments to defined contribution plans are recognised as an expense when employees have rendered service that
Provisions/ Benefit Carried Rights of use
entitle them to the contributions.
Others Obligation Forward assets Total
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 Gratuity on retirement
Deferred tax assets For employees who are not covered (or who are insufficiently covered by the above pension plans), the net present
value of gratuity on retirement payable under the Employment Rights Act 2008 (Amended) is calculated by a
At 01 July 2019, as restated 69,170 86,036 350,533 56,797 562,536
qualified actuary and provided for. The obligations arising under this item are not funded.
Credited/(charged) to profit or loss 106,335 (10,962) (47,243) 12,208 60,338
Termination benefits
Credited/(charged) to other
comprehensive income (1,012) 37,904 - - 36,891 Termination benefits are payable when employment is terminated before the normal retirement date or whenever
Translation difference 9,522 334 10,864 580 21,301 an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination
benefits when it is demonstrably committed to either: terminating the employment of current employees
At 30 June 2020, as restated 184,015 113,312 314,154 69,585 681,066 according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result
Under/Over provision (8,333) 4,455 (1,631) - (5,509) of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the
reporting period are discounted to present value.
Transfer to Assets classified as held for sale (17,680) (2,514) - - (20,194)
Translation difference 9,072 838 4,221 97 14,228
Credited/(charged) to profit or loss 2,923 (10,776) 220,779 6,199 219,125
Credited/(charged) to other comprehensive
income (1,398) (37,562) - - (38,960)
At 30 June 2021 168,599 67,753 537,523 75,881 849,756
Restated
2021 2020
MUR’000 MUR’000
Net deferred tax liabilities 940,288 1,060,014
264 265

31. RETIREMENT BENEFIT OBLIGATIONS (Cont’d) 31. RETIREMENT BENEFIT OBLIGATIONS (Cont’d)
THE GROUP (a) Defined pension benefits (Cont’d)
2021 2020 THE GROUP

MUR’000 MUR’000 2021 2020
Amounts recognised in the statement of financial position: MUR’000 MUR’000
- Defined pension benefits (note (a)(ii)) 350,549 556,428 (iii) The movement in the defined benefit obligation is as follows:
- Other post-employment benefits (note (b)(i)) 375,464 469,835 Balance at 1 July 1,542,823 1,207,954
726,013 1,026,263 Current service cost 54,199 53,567
Analysed as follows: Interest expense 56,729 67,961
Non-current liabilities 726,013 1,026,263 Employees’ contributions 5,460 7,065
Amounts charged to profit or loss: Actuarial gains/(losses) (41,357) 79,711
- Defined pension benefits (note (a)(v)) 74,609 68,187 Liability losses due to change in financial assumptions (97,620) 199,669
- Other post-employment benefits (note (b)(iii)) 65,766 80,896 Reclassification to gratuity on retirement - (7,853)
140,375 149,083 Benefits paid (56,134) (65,251)
Amounts charged to other comprehensive income: Balance at 30 June 1,464,100 1,542,823
- Defined pension benefits (note (a)(vi)) (230,707) 299,744
- Other post-employment benefits (note (b)(iv)) (68,735) 28,081
THE GROUP
(299,442) 327,825
2021 2020
MUR’000 MUR’000
(a) Defined pension benefits
(iv) The movement in the fair value of plan assets of the year is as follows:
(i) Some companies of the Group operate defined benefit pension plans. The plan is a final salary plan, which provides Balance at 1 July 986,395 952,925
benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided
depends on members’ length of service and their salary in the final years leading up to retirement. Expected return on plan assets 31,744 55,596
Group companies participate in the United Mutual Superannuation Fund, CIEL Group Segregated Fund and Gain/(Losses) on plan assets, excluding interest 48,204 (6,468)
Sugar Industry Pension Fund and other pension schemes present in respective companies. Actuarial gains/(losses) 10,039 (5,855)
The assets of the plan are independently administered separately. The present value of the defined benefit Scheme expenses 4,575 (585)
obligations and the related current service cost and past service cost were measured using the Projected Unit Cost of insuring risk benefits - (1,670)
Credit Method.
Experience gains/(losses) 33,487 (8,041)
THE GROUP Employer contributions 49,781 58,679
2021 2020 Employee contributions 5,460 7,065
MUR’000 MUR’000 Benefits paid (56,134) (65,251)
(ii) The amounts recognised in the statement of financial position are as follows: Balance at 30 June 1,113,551 986,395
Fair value of plan assets (1,113,551) (986,395) The amounts recognised in profit or loss are as follows:
Present value of funded obligations 1,440,460 1,448,017 Current service cost 54,199 53,567
Deficit of funded plans 326,909 461,622 Scheme (income)/expenses (4,575) 585
Present value of unfunded obligations 23,640 94,806 Cost of insuring risk benefits - 1,670
Liability in the statement of financial position 350,549 556,428 Net Interest expense 24,985 12,365
The net defined benefit liability is arrived at as follows: Total, included in employee benefit expense 74,609 68,187
Balance at 1 July 556,428 247,176 The amounts recognised in other comprehensive income are as follows:
Charged to profit or loss (Note 31(a)(iv)) 74,609 68,187 Remeasurement on the net defined benefit liability:
Charged to other comprehensive income (Note 31(a)(v) (230,707) 299,744 Liability experience gains/(losses) (33,487) 89,227
Contributions and benefits paid (49,781) (58,679) Liability losses due to change in financial assumptions (97,620) 199,669
Balance at 30 June 350,549 556,428 Actuarial losses (51,396) 4,380
Gain/(Losses) on plan assets, excluding interest (48,204) 6,468
(230,707) 299,744
266 267

31. RETIREMENT BENEFIT OBLIGATIONS (Cont’d) 31. RETIREMENT BENEFIT OBLIGATIONS (Cont’d)
(a) Defined pension benefits (Cont’d) (a) Defined pension benefits (Cont’d)
THE GROUP Longevity risk
2021 2020 The obligation for the members is calculated based on the best estimate of plan participants’ mortality after
retirement. Sensitivity has also been performed in respect of the mortality assumption. An increase in the life
MUR’000 MUR’000 expectancy of the plan participants will increase the liability.
(v) The fair value of the plan assets at the end of the reporting period were:
Salary risk
Cash and cash equivalents 90,267 105,750
The present value of the liability is calculated based on the future salary increase of the non-members and
Local equities 359,790 163,571
members of the plan. Sensitivity analysis of salary increase assumption has been performed to assess its impact
Overseas equities 308,334 403,029 on the liability. An increase in salary increase assumption leads to an increase the present value of the obligations.
Debt instruments 355,160 49,072 Interest rate risk
Property - 264,973
The present value of the obligation is calculated using a discount rate based on the yields of long-term government
Total Market value of assets 1,113,551 986,395 bonds. An increase or decrease in the discount rate can have a significant impact on the liabilities.
Market (investment) risk

The fair value of the above equity and debt instruments are determined based on quoted market prices in
active markets. The fair value of properties is not based on quoted market prices in active markets. Market risk is the risk that the value of an investment will decrease due to moves in market factors. The fair value
of the plan assets depends on all the components of the investment value. Hence, an increase or decrease in the
The breakdown of the assets above corresponds to a notional allocation of the underlying investments based on components of investment value may have a significant impact on the fair value of the plan assets.
the long-term strategy of each fund.
(x) The funding requirements are based on the pension fund’s actuarial measurement framework set out in the funding
(vi) The fair value of the plan assets at the end of the reporting period were: policies of the plan.
In terms of the individual expected returns, the expected return on equities has been based on an equity risk (xi) The Group expects to pay MUR 39M (2020: MUR 169M) in contributions to its post-employment benefit plans for
premium above a risk-free rate. The risk-free rate has been measured in accordance to the yields on government the year ended 30 June 2020.
bonds at the measurement date. The fixed interest portfolio includes local and foreign deposits.
(xii) The weighted average duration of the defined benefit obligations ranges between 3 and 16 years at the end of the
The expected return for this asset class has been based on these fixed deposits at the measurement date. reporting period.
(vii) The principal actuarial assumptions used for accounting purposes were: Experience adjustment on plan liabilities MUR 62.5M (2020: MUR 10.6M).
THE GROUP (b) Other post-employment benefits

2021 2020 Other post-employment benefits comprise pensions to be paid on retirement or on death before retirement and
gratuity on retirement under the Employment Rights Act 2008.
% %
Discount rate 3.1 - 5 3.1 - 5.8 THE GROUP
Future salary increases 1.5 - 2.9 1.5 - 4 2021 2020
MUR’000 MUR’000
(viii) Sensitivity analysis on defined benefit obligations at end of the reporting date:
(i) The amounts recognised in the statement of financial position are as follows:
2021 2020 Defined benefit liability 375,464 469,835
Increase Decrease Increase Decrease (ii) Movement in the liability recognised in the statement of financial position:
MUR’000 MUR’000 MUR’000 MUR’000 469,835 542,007
Discount rate (1% increase) - 197,840 - 118,911 Balance at 1 July
Discount rate (1% decrease) 151,310 - 117,705 - Total expense 65,766 80,896
Future long term salary assumption (1% increase) 18,702 - 25,780 - Liability experience gain (145) 14,116
Future long term salary assumption (1% decrease) - 38,688 - 23,189 Actuarial losses recognised in other comprehensive income (68,590) 13,965
Benefits paid (68,601) (189,002)
(ix) The sensitivity above has been determined based on a method that extrapolates the impact on net defined benefit Reclassified from defined benefit plan - 7,853
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. Transfer to liabilities directly associated with assets classified as held for sale (22,801) -
The present value of the defined benefit obligation has been calculated using the projected unit credit method. Balance at 30 June 375,464 469,835
The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may
be correlated.
The defined benefit pension plan exposes the Group to actuarial risks such as longevity risk, salary risk,
interest rate risk and market (investment) risk.
268 269

31. RETIREMENT BENEFIT OBLIGATIONS (Cont’d) 32. PROVISIONS FOR OTHER LIABILITIES AND CHARGES (Cont’d)
(b) Other post-employment benefits (Cont’d) Accounting policies (Cont’d)
THE GROUP The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding
2021 2020 the obligation. When a provision is measured using the cash flows estimated to settle the present obligation,
MUR’000 MUR’000 its carrying amount is the present value of those cash flows.
(iii) The amounts recognised in the profit or loss are as follows: 2021 2020
46,545 42,946 MUR’000 MUR’000
Current service cost
Past service cost 4,574 (6,047) Legal claims, severance allowances and penalties 101,094 118,771
Effect of curtailment and settlement (2,440) 11,642 Repayable:
Interest cost 17,087 32,355 Within one year 38,673 22,343
At 30 June 65,766 80,896 After one year 62,421 96,428
(iv) Amounts for the current year are as follows:
Present value of defined benefit obligation 375,464 469,835 The decrease from prior year relates to the Judgement which was obtained on 12 July 2021 for claims on additional
Actuarial losses (68,735) 28,081 duty in respect of the sale of Le St Geran Hotel by Sun Leisure Investments Ltd. The provision was reassessed at
MUR 20M at 30 June 2021.
(v) The principal actuarial assumptions used for accounting purposes were:
2021 2020 33. OTHER PAYABLES AND DEFERRED INCOME
% %
Accounting policies
Discount rate 2.4 - 7.2 2.3 - 6.1
Whenever the Group has received considerations for services not yet provided, this is treated as a contract liability
Future salary increases 1.5 - 8.5 1.5 - 8.5
until the performance obligation is met.
Fees and commissions from banking segment are generally recognised on an accrual basis when the service has
(vi) Sensitivity analysis on defined benefit obligations at end of the reporting date:
been provided when payment has been received in advance; the amount is credited to deferred revenue until the
service is provided, at which time, revenue would be recognised.
2021 2020
Increase Decrease Increase Decrease THE GROUP
MUR’000 MUR’000 MUR’000 MUR’000 2021 2020
Discount rate (1% increase) - 63,559 - 58,154 MUR’000 MUR’000
Future long-term salary assumption (1% increase) 32,003 - 51,835 - Other payables 13,830 -
Contract liabilities (i) 90,503 95,163
The sensitivity above have been determined based on a method that extrapolates the impact on net defined Deferred revenue (ii) 174,600 148,044
benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
The present value of the defined benefit obligation has been calculated using the projected unit credit method. 278,933 243,207
Current portion (99,715) -
The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may Non-Current portion 179,218 243,207
be correlated.
(vii) The weighted average duration of the defined benefit obligations ranges between 9 and 24 years at the end of the THE GROUP
reporting period.
2021 2020
32. PROVISIONS FOR OTHER LIABILITIES AND CHARGES MUR’000 MUR’000
(i) a. Contract liabilities
Accounting policies
Investment Hotel Scheme 61,990 63,262
Provisions are recognised when:
Golf membership fees 33,172 36,559
• the Group has a present legal or constructive obligation as a result of past events; 95,162 99,821
• it is probable that an outflow of resources that can be reasonably estimated will be required to settle Include in financial statement as follows:
the obligation. Non - current liabilities 90,503 95,163
Current liabilities - under trade and other payables 4,659 4,658
95,162 99,821
270 271

33. OTHER PAYABLES AND DEFERRED INCOME (Cont’d) 34. TRADE AND OTHER PAYABLES (Cont’d)
THE GROUP Payables are denominated in the following currencies and exclude client advances, deposits from customers and
taxes on employee benefits.
2021 2020
(i) b. MUR’000 MUR’000 THE GROUP THE COMPANY
At 01 July 99,821 104,480 2021 2020 2021 2020

Release to profit or loss (4,659) (4,659) MUR’000 MUR’000 MUR’000 MUR’000
At 30 June 95,162 99,821 USD 807,790 449,257 - -
EURO 144,304 235,312 - -
MUR 2,505,768 1,568,116 43,067 19,898
In 2018, 14 rooms under the Invest Hotel Scheme (IHS) were sold generating a revenue of MUR 134.8M. A net profit
GBP 68,331 1,093,152 - -
before tax of MUR 46.6M were realised on the transaction. The rooms were sold by Long Beach IHS to investors
who immediately leased the rooms to Long Beach Resort Ltd, for a period until the end of the Government Lease INR 646,266 493,718 - -
(i.e.) 2070. MGA 2,238,097 1,913,090 - -
Others 158,289 74,377 - -
The transactions take the form of a sale and lease back and were accounted as a finance lease in the Group Financial
6,568,845 5,827,022 43,067 19,898
Statements. As such, excess sales proceeds over the carrying amount has been deferred in Group Financial
Statements over the period of the lease term.
(ii) Deferred revenue relates to BNI Madagascar and is broken down as follows: 35. INCOME TAX
THE GROUP
Accounting policies
2021 2020 Current income tax
MUR’000 MUR’000 The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in
Income received in advance 174,600 103,002 profit or loss because of items of income or expense that are taxable or deductible in other years and items that are
never taxable or deductible.
Processing fees - 45,042
The current income tax charge is based on taxable income for the year calculated on the basis of tax laws enacted
174,600 148,044 or substantively enacted by the end of the reporting period.

34. TRADE AND OTHER PAYABLES
2021 2020 2021 2020
Accounting policies MUR’000 MUR’000 MUR’000 MUR’000
Trade and other payables are stated at fair value and subsequently measured at amortised cost using the effective CHARGE
interest method. Current tax on the adjusted profit for the year 291,861 250,822 394 606
(Over)/under provision in previous years (6,208) 14,494 - -
Corporate Social Responsibility tax (“CSR”) 3,553 1,478 13 -
2021 2020 2021 2020 Deferred income tax (Note 30) (249,814) (51,369) - -
MUR’000 MUR’000 MUR’000 MUR’000 Charge for the year 39,392 215,425 407 606
Trade payable 2,438,528 2,026,652 - - Current tax charge analysed as follows :
Client advances 330,135 316,487 - - Continuing Operations 79,548 189,073 407 606
Discontinued Operations (Note 47) (40,156) 26,352 - -
Payable to subsidiary companies (Note 44) - - 23,470 7,185
39,392 215,425 407 606
Payable to related companies (Note 44) 21,714 8,306 - -
LIABILITY
Other payables 1,107,494 1,101,738 24 - At 1 July (23,138) 99,222 443 -
Export documentary remittances 1,633,936 1,627,063 - - (Under)/over provision in previous years (6,208) 14,494 - -
Deposits from customers 159,036 220,902 - - Charge for the year 291,861 250,822 394 606
Employees related expenses 630,133 563,359 600 - CSR expense for the year 3,553 1,478 13 -
Paid during the year for previous year (35,692) (225,798) (456) -
Accrued expenses 390,672 378,492 18,973 12,713
Advance payment for current year (326,055) (120,088) (313) (163)
Current accounts with other banks 29,440 121,412 - -
Tax deducted at source paid for current year (2,335) (53,780) - -
Other payables to banks 316,928 - - - Exchange difference 7,952 10,512 - -
7,058,016 6,364,411 43,067 19,898 At 30 June (90,062) (23,138) 81 443
Analysed as follows:
Current income tax liabilities 60,889 21,949 81 443
Current income tax assets (150,951) (45,087) - -
(90,062) (23,138) 81 443
272 273

35. INCOME TAX (Cont’d) 36. DIVIDENDS PER SHARE (Cont’d)

The tax on the profit before income tax differs from the theoretical amount that would arise using the basic
THE GROUP AND THE COMPANY
tax rate:
2021 2020
THE GROUP THE COMPANY MUR’000 MUR’000
2021 2020 2021 2020 Amount payable as at 01 July - 232,438
MUR’000 MUR’000 MUR’000 MUR’000 Declared during the year - 134,747
Profit/(Loss) before income tax – Continuing Operations 772,806 (1,106,161) 130,110 165,792 Amount paid during the year - (366,745)
(Loss) before income tax – Discontinued Operations (Note 47) (287,537) (856,558) - - Unclaimed dividend written back - (440)
485,269 (1,962,719) 130,110 165,792 Amount payable as at 30 June - -
THE GROUP THE COMPANY 37. DEPOSITS FROM CUSTOMERS

2021 2020 2021 2020
Accounting policies
MUR’000 MUR’000 MUR’000 MUR’000
Deposits from customers are classified as financial liabilities at amortised cost. They are initially measured at fair
Tax calculated at a rate of 17% (2020: 17%) 82,496 (333,662) 22,119 28,185
value and subsequently carried at amortised cost.
Tax effect of:
Income not subject to tax (331,131) (311,421) (62,555) (65,535) THE GROUP
Expenses not deductible for tax purposes 284,382 633,807 40,843 37,956 2021 2020
Effect of different tax rate 8,933 255,715 - - MUR’000 MUR’000

(Over)/Under provision income tax previous years (6,208) 14,494 - - Banking Segment
Under/(Over) provision deferred tax previous years 6,398 (2,218) - - Demand deposits 19,874,258 17,465,104
Utilisation of tax losses (79,051) 21,206 - - Savings deposits 5,014,260 4,133,962
Investment tax relief (7,374) (4,773) - - Time deposits with remaining terms to maturity:
Foreign tax credit (4,097) (41,651) - - Within 1 year 4,190,691 3,024,959
Effect of tax losses unrecognised (1,745) - - - Over one year and up to five years 8,990 8,253
Deferred tax asset not recognised 85,054 2,407 - - 29,088,199 24,632,278
Covid Levy 18,680 - Current 29,079,209 24,624,024
Other adjustments (16,945) (18,479) - - Non-current 8,990 8,253
39,392 215,425 407 606 Individuals 7,627,663 6,264,267
Analysed as follows: SMEs 2,125,501 8,083,829
Continued operations 79,548 189,073 407 606 Mid Caps 3,701,355 8,566,598
Discontinued operation (40,156) 26,352 - - Other corporate 15,633,680 1,717,584
39,392 215,425 407 606 29,088,199 24,632,278
36. DIVIDENDS PER SHARE

Accounting policies
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the
period in which the dividends are declared.
THE GROUP AND THE COMPANY

2021 2020
MUR’000 MUR’000
Amounts recognised as distributions to equity holders in the year:
Final dividend payable for year ended 2020 of nil (2019: 14 cents per share) - -
Interim dividend paid for the year ended 2020 of 8 cents per share (2019: 7 cents per share) - 134,747
- 134,747
274 275

38. RECONCILIATION OF (LOSS)/PROFIT BEFORE INCOME TAX TO CASH GENERATED 38. RECONCILIATION OF (LOSS)/PROFIT BEFORE INCOME TAX TO CASH GENERATED
FROM OPERATING ACTIVITIES FROM OPERATING ACTIVITIES (Cont’d)

2021 2020 2021 2020 Notes 2021 2020 2021 2020
Notes MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Restated (a) Cash flow from operating activities (Cont’d)
(a) Cash flow from operating activities Impairment of goodwill 11 - 128,058 - -
Reconciliation of profit before income tax Intangible assets write off 11 11,382 - - -
to cash generated from operations:
Property, plant & equipment written off 9 38,543 (2,211) - -
Profit/(loss) before income tax –
Impairment of property, plant & equipment 9 392,049 735,379 - -
continuing operation 772,806 (1,106,161) 130,110 165,792
Impairment of leasehold rights 16 - 45,529 - -
Loss before income tax – discontinued operation 47(d) (287,537) (856,558) - -
(Reversal of)/provision for impairment and write off
Amortisation of intangible assets 11 92,366 96,495 - -
of inventories 18 48,762 309,652 - -
Depreciation on property, plant and equipment 9(a) 1,130,182 1,198,867 - -
Provision for impairment of financial assets 5(b) 152,094 436,110 - -
Depreciation on right of use assets 9(b) 176,813 179,748 - -
Provision for impairment on loans and advances
Interest expense 6 1,065,087 1,209,503 140,134 143,791 to customers 5(b) 220,535 303,827 - -
Interest income 6 (20,071) (47,651) (576) (3,829) Share based scheme expense 5 - (798) - (798)
Amortisation of leasehold land 16 - 36,406 - - Movement in provisions and deferred revenue 33 18,049 49,505 - -
Fair value gain on investment property 10 (959,638) (160,297) - - Increase/(decrease) in provision for retirement
benefit obligations net of benefits paid 31 21,993 (97,788) - -
Fair value gain on asset held for sale 21 20,106 (20,106) - -
Amortisation of transaction costs on borrowings 17,061 10,620 - -
Fair value movement on derivatives 42(c) (6,213) 100,380 - -
Unrealised exchange difference 365,469 (105,654) 1,211 -
Impairment on investment in associates 14 - 108,744 - -
Land lease waiver 39 (99,053) - -
Share of result of joint ventures 13 9,588 67,047 - -
Profit on disposal of investment property 10,21 (31,812) (2,916) - -
Share of result of associates 14 (276,912) (15,513) - -
Profit on disposal of plant and equipment 5 (8,994) (3,280) - -
Profit on disposal of associate 14 (26,658) - - -
Profit on disposal of plant and equipment from
discontinued operations 48 (29,036) - - -
2,806,961 2,596,937 270,879 304,956
Changes in working capital:
- trade and other receivables (342,648) 143,232 (303,480) 171,207
- loans and advances (2,379,602) (2,949,647) - -
- investment securities (1,268,687) 52,766 - -
- loans and advances to banks 41,881 397,693 - -
- inventories (647,080) 72,511 - -
- trade and other payables 821,772 (468,525) 23,035 (15,257)
- deposits from customers 3,373,245 3,246,346 - -
Cash generated from operating activities 2,405,842 3,091,313 (9,566) 460,906
276 277

39. NOTES TO THE STATEMENTS OF CASH FLOWS 39. NOTES TO THE STATEMENTS OF CASH FLOWS (Cont’d)

2021 2020 2021 2020 Cash/Bank Total Lease Cash/Bank Total
MUR’000 MUR’000 MUR’000 MUR’000 Overdraft Borrowings Liabilities Total Overdraft Borrowings Total
(a) Cash and cash equivalents (c) Year ended 30 June 2020 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Cash in hand and at bank 1,715,540 1,635,849 6,797 13,310 Net debt as at 01 July 4,501,358 (15,742,541) - (11,241,183) 287,294 (2,687,947) (2,400,653)
Foreign currency notes and coins 134,792 122,560 - - Impact of prior year adjustment
(Note 46) - (101,098) 249,043 147,945 - - -
Balances with Central Bank 3,029,100 2,868,414 - -
Impact of IFRS 16 - 429,473 (4,167,747) (3,738,274) - - -
Balances due in clearing 22,899 18,312 - -
Restated balance
Balances with bank 2,747,510 3,056,133 - -
at 01 July 2019 4,501,358 (15,414,166) (3,918,704) (14,831,512) 287,294 (2,687,947) (2,400,653)
Placements 2,281,334 538,581 - 12,336
Cashflows 2,130,728 - - 2,130,728 (261,648) - (261,648)
9,931,175 8,239,849 6,797 25,646
Additions - (5,611,484) 281,671 (5,329,813) - (350,546) (350,546)
Bank overdrafts (739,197) (1,355,605) (84,557) -
Repayments - 2,355,580 289,055 2,644,635 - 70,051 70,051
Cash at call – related parties - - (96,239) 3
Impact of prior year - (170,510) 39,852 - - -
9,191,978 6,884,244 (173,999) 25,649
adjustment (Note 46) 210,362
Foreign exchange adjustment 252,158 (549,791) (421,717) (719,350) 3 - 3
THE GROUP THE COMPANY Net debt as at 30 June 2020 6,884,244 (19,390,371) (3,559,333) (16,065,460) 25,649 (2,968,442) (2,942,793)
Cash/Bank Total Lease Cash/Bank Total

Overdraft Borrowings Liabilities Total Overdraft Borrowings Total 40. CONTINGENCIES
(b) Year ended 30 June 2021 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Accounting policies
Net debt as at 01 July 2020 6,884,244 (19,390,371) (3,559,333) (16,065,460) 25,649 (2,968,442) (2,942,793)
Cashflows 2,239,496 - - 2,239,496 (199,648) - (199,645) At 30 June 2020, the Group had contingent liabilities in respect of bank and other guarantees and other matters
arising in the ordinary course of business from which it is anticipated that no material liabilities would arise.
Additions - (6,947,926) - (6,947,926) - (504,117) (504,117)
CIEL Finance Limited has a floating charge of EUR 4M from the Mauritius Commercial Bank in favour of a bank to
Repayments - 8,561,619 204,389 8,766,008 - 450,000 450,000
counter-guarantee BNI Madagascar in respect of credit concentration limits imposed by the Malagasy regulator.
Waiver - - 99,053 99,053 - - - The Company also has a floating charge over its assets in favour of The Mauritius Commercial Bank, acting as
Foreign exchange adjustment 68,238 (833,757) (9,272) (774,791) - - - Noteholders’ Representative under the Notes Issue effected in September 2019, for a maximum amount of
MUR 500M in principal plus any interests and related costs.
Net debt as at 30 June 2021 9,191,978 (18,610,435) (3,265,163) (12,683,620) (173,999) (3,022,559) (3,196,555)
SUN Limited Bank guarantees were given to Anahita Hotel Ltd on behalf of Sun Limited with respect to long-term
debts contracted by the latter arising in the ordinary course of business from which it is anticipated that no material
During the financial year 30 June 2021, the Group received a lease waiver of MUR 99M on state owned lands. losses will arise. Except than those disclose above, the Group had no other contingent liabilities in respect of bank
and other guarantees and other matters arising in the ordinary course of business as at 30 June 2021.
CIEL Textile Limited had contingencies in respect of tax assessments, legal cases and bank guarantees to third
parties in respect of expatriates amounting to MUR 89.3M (2020: MUR.78.1M).
278 279

40. CONTINGENCIES (Cont’d) 42. DERIVATIVE FINANCIAL INSTRUMENTS (Cont’d)

CIEL Healthcare Limited Accounting policies (Cont’d)
THE GROUP
Fair value hedge
2021 2020
Changes in the fair value of derivatives that are designated and qualified as fair value hedges are recorded in profit
MUR’000 MUR’000
or loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the
Contingent liabilities hedged risk.
Bank and other guarantees 1,670 1,801 Cash flow hedge
The Group applies only fair value hedge accounting for hedging fixed interest risk on borrowings. The gain or loss
At 30 June 2021, the Group has contingent liabilities in respect of bank and other guarantees of MUR 1.6m (30 June relating to the effective portion of interest rate swaps hedging fixed rate borrowings is recognised in profit or loss
2020: MUR 1.8m). within finance costs. The gain or loss relating to the ineffective portion is recognised in profit or loss.
A plaint with summons was served on the Group by Metropolis Bramser Lab Services (Mtius) Ltd (“Metropolis”) Changes in the fair value of the hedge fixed rate borrowings attributable to interest rate risk are recognised in
claiming compensation amounting to MUR 150 M (30 June 2020: MUR 150M) for damages suffered as a result of profit or loss within finance costs.
inter alia an alleged wrongful termination of the contract between the Group and Metropolis. The Group is strongly
disputing this claim and filed its plea (defence) before the Supreme Court of Mauritius on 12 July 2019. The case If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged
shall proceed to hearing. Based on the legal advice obtained, management and the board have reasonable grounds item for which the effective interest method is used is amortised to profit or loss over the period to maturity.
to expect that no material financial impact will arise for the company.
The effective portion of changes in the fair value of derivatives that are designated and qualified as cash flow hedges
There are also some legal cases regarding medical negligence against the Group for which judgement are yet to are recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised
be delivered. The potential aggregate claims for these legal cases amount to MUR 492M (30 June 2020: MUR 130 M). immediately in the profit or loss.
41. COMMITMENTS Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit
or loss.
THE GROUP
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting,
2021 2020
any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast
(a) Capital Commitments MUR’000 MUR’000 transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected
to occur, the cumulative gain or loss that was reported in equity is immediately transferred to profit or loss.
Authorised by the directors and contracted for 145,573 160,000
Authorised by the directors but not contracted for 315,000 99,914 Level 2 Level 3 Total
460,573 259,914 MUR’000 MUR’000 MUR’000
At 30 June 2021
(b) Guarantees and other obligations on account customers and commitment – Banking Segment Assets
The guarantees and other obligations on account of customers and commitments for the banking segment amount Derivatives used for hedging 74,380 - 74,380
to MUR 4.6Bn as at June 30, 2021 (2020: MUR 4.8Bn) denominated in Ariary. Liabilities
Derivatives used for hedging (92,691) - (92,691)
42. DERIVATIVE FINANCIAL INSTRUMENTS
(18,311) - (18,311)
Accounting policies At 30 June 2020
Assets
As permitted by IFRS 9, the Group has elected to continue applying IAS 39 for hedge accounting requirements,
hence the below accounting policies are applicable for both the financial years ended 30 June 2020 and 2021. Derivatives used for hedging 98,109 9,370 107,479
Liabilities
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
Derivatives used for hedging (132,003) - (132,003)
remeasured at their fair value. The method of recognising the resulting gain or loss depends on whether the
derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. Total (33,894) 9,370 (24,524)
The Group designates certain derivatives as either:

Derivatives include forward exchange contracts and interest rate swaps with a notional amount of MUR 4.2Bn
• Hedges of the fair value of recognised liabilities (fair value hedge); (2020: MUR 11.8Bn).
• Hedges of a particular risk associated with a recognised liability or a highly probable forecast transaction
(cash flow hedge); or a. Assets
• Hedges of a net investment in a foreign operation (net investment hedge). Level 2 Level 3 Total
The Group documents, at the inception of the transaction, the relationship between hedging instruments and MUR’000 MUR’000 MUR’000
hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. Derivatives used for hedging
The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the
derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash Balance as at 1 July, 2019 49,917 3,127 53,044
flows of hedged items. Gains/(losses) recognised in profit or loss 48,192 6,243 54,435
Balance as at 30 June 2020 98,109 9,370 107,479
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged
item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged Gains/(losses) recognised in profit or loss (23,729) (9,370) (33,099)
item is less than 12 months. Trading derivatives are classified as a current asset or liability. Balance as at 30 June 2021 74,380 - 74,380
280 281

42. DERIVATIVE FINANCIAL INSTRUMENTS (Cont’d) 43. CASH FLOW HEDGE (Cont’d)
b. Liabilities Accounting policies (Cont’d)
The Textile Group adopted the following strategy:
Level 2 Level 3 Total
MUR’000 MUR’000 MUR’000 The Treasury Committee and Chief Executive of the Group are responsible for the decision making, with the intention
to take cover, through forward exchange contracts with a view to cover for sale transactions that are judged as
Derivatives used for hedging being highly probable. The intention is to cover for transactional exposures as they are unveiled. Prerogative is given
Balance as at 1 July, 2019 (27,375) - (27,375) to the Treasury Committee and Chief Executive of the Group to decide if they would keep part of this position
uncovered with the view of benefiting from potential currency appreciation against the MUR.
(Losses) recognised in other comprehensive income 50,187 - 50,187
Gains/(losses) recognised in profit or loss (154,815) - (154,815) The Textile Group enters into forward covers to manage its foreign exchange risk on foreign denominated sales.
Forward exchange covers are taken for orders received and which are highly probable, and this is designated as a
Balance as at 30 June 2020 (132,003) - (132,003) cash flow hedge. Forward covers are used as a mechanism to fix the amount of foreign currency denominated sales
Gains/(losses) recognised in profit or loss 39,312 - 39,312 which are used to modify cash flow between financial instrument and sales receipts upon realisation.
Balance as at 30 June 2021 (92,691) - (92,691) Financial instruments taken to hedge the Textile Group’s sales are fair valued and recognised in the statement of
financial position as financial assets/liability. For those sales on which a forward has been taken and which has
materialised, the resulting fair value gain/loss on re-measurement is accounted for in profit or loss while for those
c. Amount recognised in profit or loss transactions for which the underlying sale has not yet materialised, the fair value gain/loss is recorded in other
comprehensive income. The latter is then recycled to profit or loss as soon as the sale materialises, and the goods
2021 2020 are shipped.
MUR’000 MUR’000
The Textile Group enters into forward contracts (hedge instrument) to buy or sell foreign currencies at a specified
Assets (33,099) 54,435 future time at a price agreed upon the contract date. The price is locked until delivery of sales order which normally
will not exceed 9 months. Hedge instruments, in this case forward exchange contracts, are expected to be highly
Liabilities 39,312 (154,815)
effective to mitigate the foreign currency risk exposure on sales (hedged item). By selling forward, the Textile Group
6,213 (100,380) expects to mitigate long term currency exchange risk and will revalue in the opposite direction to the underlying
transaction.
d. Amount recognised in other comprehensive income The objective of the Textile Group is to cover identified exposures (i.e. confirmed orders or highly probable sales
orders) to the minimum of 75% and a maximum of 125%. However, this benchmark is determined on a case to case
2021 2020 basis by the CEO and treasury committees of the respective business clusters while taking into consideration the
specific transaction requirements.
MUR’000 MUR’000
Assets - - For all sales not yet shipped and for which a forward exchange contract cover has been taken, the Textile Group
performs a revaluation of outstanding forward contracts relating to cash flow hedges which is then recorded in
Liabilities - 50,187 the statement of comprehensive income.
- 50,187
Revaluation of outstanding forward contracts relating to transaction for which an asset has already crystallised
in the statement of financial position (sales already shipped, and debtors raised) will be recorded in profit or loss.
43. CASH FLOW HEDGE Subsequently, the cash flow hedge recognised in other comprehensive income will be reversed in profit or loss in
the following year, as an underlying asset would already have crystallised upon the orders being shipped (Sales not
Accounting policies shipped last year would have been shipped this year).
Textile Segment Hedge instruments in the form of forward foreign exchange contracts is expected to be highly effective as the
unshipped sales, which represents the hedged item, has a direct economic relationship to the forward foreign
The Textile Group is involved in the production and sale of textile apparel, most of which is done through exports
exchange contract entered into to mitigate the foreign exchange exposure on the Textile Group’s unshipped and
to foreign countries. The Textile Group is made up of Knitwear Cluster, Fine knits Cluster and Woven Cluster and is
confirmed sales orders at year end.
exposed to foreign exchange risk on the sale of textile products denominated in foreign currency. The Textile Group
exports almost all of its production (South African Rand ‘ZAR’, United States Dollars ‘USD’, Great Britain Pound ‘GBP’ Although effectiveness is certain to be 100 % as long as plain vanilla forward contracts are used, a 10 % error
and Euro ‘EUR’). margin in the hedge effectiveness is considered as acceptable. To determine effectiveness of the hedge, the list
of hedge instruments (forward contracts) are matched with list of sales not yet shipped/highly probable sales
The Textile Group is mainly faced to the following foreign exchange exposures:
(hedged items).
Pre-transaction foreign currency risk
The Textile Group has a single risk category which is the foreign exchange risk on foreign denominated sales.
This arises before the transaction (‘sale’) becomes contractual while a quote is given to the client in foreign currency.
The Textile Group does not have any forecast transaction for which hedge accounting had been used in the previous
Even though the transaction is not confirmed, movement in exchange rate to the disfavour of the Textile Group
period, but which is no longer expected to occur.
signifies a potential risk. If a customer later accepts the quote received, there is a risk that the foreign currency price
then converted to MUR will not bring the desired margin.
Transaction foreign currency risk
Transactional foreign currency risk arises as soon as there is a contractual obligation between the Textile Group
and the foreign customers. If nothing is done, there is a certain risk that the foreign exchange rate may weaken and
if it so happens, the Group may only lose the intended margin on the transaction and may even incur losses if the
exchange rate variations are drastically in disfavour of the Group.
282 283

43.CASH FLOW HEDGE (CONT’D) 43. CASH FLOW HEDGE (Cont’d)

Textile Cluster Textile Cluster (Cont’d)
The following table details the forward foreign currency (FC) contracts outstanding at the end of the reporting period: 2021 2020
MUR’000 MUR’000
2021 2020 2021 2020 Contract value Fair value Gain/(loss)
Recognised as follows:
Outstanding Average
contracts exchange rate Sell Buy Sell Buy 2021 2020 2021 2020 2021 2020 On statement of financial position
FC’000 FC’000 FC’000 FC’000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Fair value asset on forward contracts 8,973 18,977
Sell currency Fair value liability on forward contracts (27,555) (50,230)
EUR and buy (18,582) (31,253)
currency USD 1.13 1.14 2,885 3,256 1,969 2,236 (92,081) 88,302 (90,586) 89,598 1,495 1,296
In statement of profit or loss
Sell currency
EUR and buy (Loss)/gain on financial derivatives (29,396) (27,739)
currency MUR 48.72 45.39 536 26,113 535 24,281 (26,113) 24,281 (26,689) 24,900 (576) 619 In statement of other comprehensive income
Sell currency Gain/(loss) on financial derivatives 10,814 (3,514)
GBP and buy
currency USD 1.34 1.30 4,665 6,252 2,267 2,940 (262,895) 13,253 (270,073) 19,866 (7,178) 6,613 (18,582) (31,253)
Sell currency
GBP and buy Hotel Cluster
currency MUR 57.70 46.90 1,312 75,700 1,000 46,900 (75,700) (46,900) (76,105) (48,416) (405) (1,516)
The Group is exposed to foreign currency risk, most significantly to the Euro, Pound Sterling and US Dollar, on the
Sell currency Group’s sales denominated in these currencies. The Group hedges these exposures by entering into foreign currency
ZAR and buy loans (“hedging instruments”) with future principal payments that will match the future sales (“hedged item”) in
currency USD 0.07 0.06 137,227 9,526 62,250 3,929 220,720 118,851 236,621 136,923 15,901 18,072 these currencies. All exchange differences arising on the conversion of foreign currency loans are deferred in equity,
Sell currency under the cash flow hedge reserve to the extent that the hedge is effective. On recognition of the hedged sales,
ZAR and buy the foreign currency gain/loss is netted off by releasing a portion of the cash flow hedge reserve.
currency MUR 2.50 2.38 194,233 486,195 89,737 213,502 (35,118) 213,502 (50,090) 225,718 (14,972) 12,216
As a result of the uncertainty in expected foreign currency revenue resulting from the Covid-19 pandemic and the
Sell currency related suspension of its operations, the hotel segment has reviewed the hedging portfolio to confirm whether
USD and buy the underlying transactions remain “highly probable”.
currency MUR 41.41 37.57 25,941 1,074,090 40,547 1,523,531 863,643 1,523,531 845,654 1,458,076 (17,989) (65,455)
At the time of reporting, management has identified:
Sell currency
USD and buy (i) A portion of foreign currency sales which are no longer deemed to be “highly probable” but are still expected
currency ZAR - - 1,500 17,074 - - 17,963 - 18,731 - 768 - to occur Hence, the corresponding cumulative gain or loss deferred in equity whilst the hedge was effective
Sell currency remains in equity until the forecasted transaction occurs.
USD and buy
(ii) A portion of foreign currency sales which are no longer deemed to the “highly probable” and are not expected
currency INR 75.40 74.80 7,350 554,206 2,900 216,917 321,439 114,966 322,958 112,351 1,519 (2,615)
to occur. Hence the corresponding cumulative gain or loss deferred in equity whilst the hedge was effective
Sell currency are immediately removed from equity and are recognised in the statement of profit or loss.
GBP and buy
currency INR 104.25 95.71 1,150 119,886 1,251 119,733 69,534 63,459 69,655 65,983 121 2,524 Below is a schedule indicating as at 30 June 2021, the periods when the hedge cash flows are expected to occur and
when they are expected to affect profit or loss.
Sell currency
EUR and buy
currency INR 91.36 84.96 2,600 237,527 2,600 220,892 137,766 117,073 140,500 114,066 2,734 (3,007) Within 1 to 3 3 to 5 More than
1 year years years 5 years
Total 1,139,158 2,230,318 1,120,576 2,199,065 (18,582) (31,253)
THE GROUP MUR’000 MUR’000 MUR’000 MUR’000
2021
Cash inflows - 2,497,211 1,416,828 740,943
Cash outflows (229,403) (2,863,642) (1,416,828) (740,943)
Net cash outflows (229,403) (366,431) - -
2020
Cash inflows - 1,002,307 879,809 4,668,871
Cash outflows (3,055,407) (1,002,307) (879,809) (4,668,871)
Net cash outflows (3,055,407) - - -
284 285

43. CASH FLOW HEDGE (Cont’d) 44. SIGNIFICANT RELATED PARTY TRANSACTIONS
Finance Cluster Amount Amount
The Finance Cluster had the following forward foreign exchange contracts outstanding at the end of the reporting Rental Management owed by owed to
period. Dividend and Other Fees Related Related
(a) The Group Income Income Receivable Parties Parties
Notional amount Carrying amount MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
Buy Sell Assets Liabilities Associated companies 2021 57,962 1,015 - 27,961 -
MUR’000 MUR’000 MUR’000 MUR’000 2020 38,787 21,251 2,739 19,763 -
Year 30 June 2021 Enterprises that have a number of
common directors 2021 - 18,998 19,672 87,539 21,714
EURO to MUR 74,512 78,564 3,034 3,456
2020 - 400 - 73,893 8,306
EURO to USD 14,699 - - 307
Joint ventures in which the company
GBP to MUR 32,455 34,602 1,001 1,062
is a venturer 2021 - - - - -
USD to MUR 1,168,121 1,060,284 43,578 42,361
2020 - 1,402 - - -
ZAR to MUR 280,296 280,296 21,180 21,180
Shareholders, Director and
1,570,083 1,453,746 68,793 68,366 Key management personnel 2021 - - - - 7,075
Year 30 June 2020 2020 - - - - 18,000
EURO to MUR 89,656 84,958 8,382 8,168
EURO to USD 114,418 114,518 857 857
GBP to MUR 46,900 46,900 2,350 2,350 Management Interest, Amount Amount
GBP to USD 63,752 63,752 3,301 3,301 Fees and Rental owed by owed to
Dividend Other and Other Financial Related Related
USD to MUR 1,150,084 1,114,926 62,673 65,528 Income Expenses Charges Call Parties Parties
(b) The Company Income
ZAR to MUR 43,665 43,665 1,295 1,295 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
ZAR to USD 1,644 1,644 274 274 Subsidiary companies 2021 360,320 59,891 545 2,005 96,239 316,428 23,470
1,510,119 1,470,363 79,132 81,773 2020 375,827 39,862 4,718 1,781 12,338 15,302 7,185
Associated companies 2021 4,595 - - - - - -

2020 2,816 - - - - 380 -
286 287

44. SIGNIFICANT RELATED PARTY TRANSACTIONS (Cont’d) 45.FINANCIAL RISK MANAGEMENT (Cont’d)
(c) Amounts owed to/by related parties are unsecured and are repayable on demand. There have been no guarantees (ii) Non-banking specific segment
provided or received for any related party receivables/payables. The Company has not recorded any impairment of
receivables during the year. This assessment is undertaken each year through examining the financial position of the Financial services segment
related party. The cluster’s credit risk from its non-banking operations is primarily attributable to its trade receivables. The amounts
presented in the statement of financial position are net of provision for impairment calculated in accordance with
Management fees and other expenses relate to services provided for Strategic, Corporate Governance,
IFRS 9 based on history, the current economic environment, and future macro-economic variables. The cluster has
Company Secretary & Registry, Legal Support, Communication and Corporate Finance.
policies in place to ensure that sales of services are made to customers with an appropriate private credit history.
(d) Key management personnel salaries and compensation The credit quality of this financial asset can be assessed by the historical information about the financial strengths
THE GROUP of the financial institutions the cluster is dealing with. In the opinion of the cluster, there is no associated risk as
these are reputable institutions.
2021 2020
The cluster has no significant concentration of credit risk, with exposure spread over a large number of counterparties
MUR’000 MUR’000 and customers. The cluster has policies in place to ensure that sales of products and services are made to customers
Salaries and short-term employee benefits 337,843 442,992 with an appropriate credit history. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of receivable. The cluster does not hold any collateral security for receivables relating to the
Post-employment benefits 19,123 19,689
non-banking segment.
356,966 462,681
(b) Credit risk
Credit risk is the risk of suffering financial loss, should any customers, clients or market counterparties fail to fulfil
45. FINANCIAL RISK MANAGEMENT their contractual obligations to the Group.
(a) Financial risk factors (i) Non-banking specific segment
The Group’s objective is to provide long term capital growth and regular appreciation in dividend income distribution The credit risk exposure of the Group’s non-banking segment has been assessed in Notes 19(e), 20 and 24.
to investors. This objective is being fulfilled through investing in a diversified portfolio of equity and equity related (ii) Banking specific segment – BNI Madagascar SA (“BNI”)
investments.
Credit risk of the banking specific segment arises mainly from commercial and consumer loans, credit cards,
(i) Banking specific segment loan commitments and also credit enhancements such as financial guarantees, letters of credit, endorsements
BNI Madagascar (“BNI”) is a bank under the Finance Cluster. The Group analyses the financial risk management of BNI and acceptances.
Madagascar separately as the banking operations are different compared to other entities in the Group which are BNI is also exposed to other credit risks arising from investments in debt securities and other exposures arising from
involved in various non-banking activities. its trading activities (‘trading exposures’), including non-equity trading portfolio assets and settlement balances
BNI’s activities expose it to financial risks such as market risk (including currency and interest rate risk), credit risk with market counterparties and reverse repurchase loans. Management carefully manages its exposure to credit
and liquidity risk. risk where credit risk management and control are centralised in a credit risk management team (namely Direction
of Risks, Legal, Compliance & Controls), managed by the Chief Risk Officer, who reports to Indian Ocean Financial
(ii) Non-banking specific segment Holding Limited’s (‘IOFHL’) Risk Committee.
Textile segment Credit risk management
The cluster’s credit risk is primarily attributable to its trade receivables and bank balances. For banks and financial The cluster has put in place clear policies to manage its credit risks from its banking subsidiaries. This includes
institutions, the cluster only transacts with highly reputable counterparties. The amount presented within the tolerance thresholds, maximum exposure limits, having an approval process that maintains the equilibrium
Group’s segmental note is net of allowances for doubtful receivables, estimated by the management based on prior objectives and risk management, and the responsibility and accountability for credit risk management. All policies
experience and the current economic environment. The cluster has policies in place to ensure that sales of products and limits are presented to BNI’s board for approval.
and services are made to customers with an appropriate credit history.
The strategy is to set a global acceptable level of risk and exposure limits and then to put in place the required
Hotels and Resorts segment limits to ensure that the risks taken remain within the acceptable threshold. The risk strategy and related thresholds
The cluster has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, approved by the Risk Committee include a global limit set with regards to sovereign risk including Central Bank and
where appropriate, as a means of mitigating the risk of financial loss from defaults. The cluster only transact with other government institutions whilst for the corporate sector, the limits are set per sector; Telecommunications,
entities of good credit rating. This information is supplied by independent rating agencies where available and, Transport-transit, real estate and textile. The credit policies are reviewed annually with the budget.
if not available, the cluster uses other publicly available financial information and its own trading records to rate its Management regularly reviews the loan portfolio, including non-performing loans, and periodically submits the
major customers. The cluster’s exposure and the credit risks of its counterparties are continuously monitored. The credit committee to ensure adequacy of provision and monitoring of written off account.
carrying amount of financial assets recorded, which is net of impairment losses, represents the cluster’s maximum
exposure to credit risk without considering the value of any collateral obtained. Risk limit control and mitigation policies
Agro & Property segment BNI manages, limits and controls concentrations of credit risk wherever they are identified − within individual
counterparties, groups and sectors.
The cluster’s risk is primarily attributable to its receivables. The amount presented within the Group’s segmental
note is net of allowances for doubtful receivables, estimated by the management based on prior experience and BNI monitors credit risk by having limits on the level of risk accepted for an individual or a group of borrowers, and
the current economic environment. for industry segments. Such risks are monitored on a recurring basis and are subject to annual or more frequent
reviews when considered necessary. Limits on the level of credit risk by product or industry sector are approved
Healthcare segment quarterly by the Risk Committee, which reports to the Board of Directors.
The cluster’s risk is primarily attributable to its trade receivables. The amount presented within the Group’s The exposure on borrowers including banks and brokers is further restricted by imposing limits covering on and
segmental note is net of allowances for credit losses, estimated by the management based on prior experience off-balance sheet exposures, and by limiting daily delivery risk limits in relation to trading items such as forward
and the current economic environment. The cluster has a dedicated debtors recovery team that monitors its foreign exchange contracts. Actual exposures against limits are monitored daily.
debtors balance. Where applicable, the cluster takes necessary legal actions in order to recover its balances from
the debtors. The cluster has no significant concentration of credit risk, with exposure spread over a large number Lending limits are reviewed in the light of changing market and economic conditions and periodic credit reviews and
of counterparties assessments of probability of default.
288 289

45. FINANCIAL RISK MANAGEMENT (CONT’D) 45. FINANCIAL RISK MANAGEMENT (CONT’D)
(b) Credit risk (Cont’d) (b) Credit risk (Cont’d)
(ii) Banking specific segment – BNI Madagascar SA (“BNI”) (Cont’d) Banking specific segment – BNI Madagascar SA (“BNI”) (Cont’d)
Risk limit control and mitigation policies (Cont’d) Risk limit control and mitigation policies (Cont’d)
Counterpart limits • The Central Bank was also committed to maintaining a sufficient level of liquidity in the market. While there
were no blanket concessions, lending limit overruns were dealt with on a case-by-case basis. Indeed, this
BNI defines a single counterparty as a legally and / or financially consolidated counterparty or group of counterparties. institution have reacted swiftly to limit the pro-cyclical impact of this crisis and ensure banks have access to
Based on the local standards in Madagascar, the risk division rule provides for the obligation to respect two limits additional resources that should be used to provide more financial support to borrowers;
at all times as follows:
• A daily liquidity amounting to approximately MGA 100 billion has been made available for the banking system
(i) Any commitment to a single counterparty which may not exceed 35% of the bank’s equity. in 2020;
(ii) For all major risks (cumulative commitments in favor of shareholders, the Board of Administration and auditors) • To support the economy, the level of monetary policy instruments remained unchanged (the rate of deposit
set at a maximum threshold of 10% of equity. facilities remained at 0.90%, that of marginal lending facilities at 5.30% and the minimum reserve coefficient
at 13%).
In principle, the maximum risk that BNI is prepared to accept is defined according to the creditworthiness,
expected loss (ECL) and probability of default (PD) of the counterparty. And as a general rule, limits are proportional Internal Customer support during the Covid-19 crisis and Credit risk mitigation strategy
to both the equity of the bank and that of the counterparty. The main support measures taken internally by BNI are mainly:
Sectorial limits • Rescheduled the maturity of loans for an outstanding amount of MGA 188 billion and MGA 4 billion
BNI aims to maintain a reasonably granular portfolio in terms of exposure to business sectors. To this end, limits • Development of special treasury loans relating to corporates and SMEs with preferential terms for an amount
have been set and regularly revised for the maximum credit exposure to a single sector (as a percentage of of MGA 22 billion and MGA 19 billion respectively.
total exposure) according to the dynamics, outlook and risk profiles of each sector, assessed periodically through • All the private sector employees have benefited (about 37 663 clients concerned) of the postponement of
sector studies carried out by BNI. maturities up to 3 months in two (02) waves in 2020. An outstanding amount of MGA 58 billion has been
rescheduled in the first wave of maturity postponement for about 21 654 individual borrowers (period from March
Sovereign limits
2020 to May 2020) and MGA 42 billion in the second wave for 16 009 individual borrowers (period from July 2020
The key attribute for determining sovereign limits is the country risk rating assessed by rating agencies and the to September 2020). Furthermore, the tourism and textile industry are the most concerned by this support as
sovereign risk assessment conducted internally. This assessment is regularly updated based on the macroeconomic they occupy the largest part of private sector portfolio and are the most affected by the Covid-19 crisis.
outlook, changes in the business environment, the quality of governance as well as the country’s political risk profile.
Under these difficult conditions, BNI continues to carefully assess critical elements of his credit risk management,
COVID-19 context including data infrastructure, monitoring, and reporting management, risk segmentation, portfolio stress
testing, guarantee management, recovery management and credit risk strategy and governance. And apart from
In 2020, the economy of Madagascar was severely impacted by the Covid-19 pandemic, due to the fall of tourism others mitigation actions already implemented, the following actions have been emphasized and strengthened
activities, exports and lower domestic demand. As tax revenues decreased sharply, the fiscal situation deteriorated furthermore from the beginning of the crisis until now:
the domestic primary balance resulting in a deficit of about 3% of GDP in 2020 compared to a surplus in 2019.
Indeed, an economic recession with a GDP growth of -4,24% has been declared by The International Monetary Strengthening of the monitoring system
Fund at the end of 2020. Almost all the main sectors, which contribute significantly to GDP, are affected, especially • Frequent risk committee for a meticulous review of customers both in Watch-list and downgraded.
vanilla, textile, tourism and mining industries. However, many mitigation interventions have been initiated by the
Government to preserve and maintain the national macroeconomic and the financial stability. Among these actions, • Strategies have also been put in place to engage with borrowers as soon as they show signs of distresses
the most significant are : (cash flow domiciliation decrease, scoring decrease, industry degradation, etc.), especially corporate customer.
Indeed, borrowers in distress have been identified early so that viable borrowers can be provided with sustainable
His Excellency President Andry Rajoelina initiated the FIHARIANA project, a national program of the Government solutions in a timely manner. This would partly mitigate the economic impact of the pandemic for debtors and the
whose main objective is to give both technical and financial support to any Malagasy wishing to start a business. bank alike. To achieve this, BNI has implemented an early warning system that monitors borrower-specific signs
Malagasies can now go into entrepreneurship and borrow between 200,000 Ariary to 200 million Ariary from the of distress, and a systematic reporting is frequently addressed to senior management and strategic committees.
program to finance their project;
• Apart from the delegations in force to settle all forcing operations in the debit of current account without
• The development of the MIARINA loan in conjunction with the banking sector is a 24-month amortisable and formal lines granted or beyond the granted lines, a special committee composed of the CEO, CRO and the sales
subsidised loan intended to support Small and Medium Enterprises (SMEs) with a formal activity and who are team has been set up for deciding to all overrun on the overdraft line beyond MGA 500 million;
impacted by the consequences of the Covid-19 crisis. The loan is 100% guaranteed by the FIHARIANA Project ; • Particular vigilance for credit related to sectors in degradation, especially vanilla industry.
• The Ministry of Agriculture, Livestock and Fisheries, supported by the African Development Bank, implemented, • BNI is committed to strengthen its data infrastructure to further automate the credit risk reporting systems
for a duration of three years, the Program for the Promotion of Youth Entrepreneurship in Agriculture and (using especially Business Intelligence System). Therefore, the bank will continue to strengthen its monitoring
Agro-Industry. This is a program open to young graduates aged between 18 and 35, who have an idea or an framework, supported by an adequate data infrastructure, to ensure that credit risk reports are relevant,
agro-business project and who wish to become an agricultural entrepreneur. Some business plans have been reliable, complete, up-to-date and provided in useful time;
received by BNI which has been the first to implement this agreement. Young entrepreneurs had the opportunity • Without being exhaustive, the main reports are focused on: (i) The largest exposures (Corporate or not),
to benefit from preferential loan conditions and the best banking services of BNI facilitate their banking access (ii) Portfolio exposure by sector/score. (iii) credit concentration risk (iv) Watch-List follow-up report
(guarantee coverage rate of 100% by the program) and carry out their projects; (v) The evolution of anomalies on the credit portfolio (vi) The statement of provisions and the net cost of risk.
• The postponement of maturities up to 3 months for loans to individuals affected by COVID has been requested
Portfolio stress testing
by the Government to banking sector. Accompanying measures have also been put in place for businesses
(postponement of maturity, Special treasury loan development, etc.); • An effective portfolio stress test program is carried out periodically by the bank as it plays an important role in
facilitating the development of credit risk mitigation plans.
• According to Central Bank instruction, the banking sector has benefited from a reduction of the minimum
compulsory reserves equivalent to the amount of rescheduled loans; • This stress test program is documented, and the results analysed in order to identify the various major points,
and thus it makes possible to decide proactively on the credit risk amortizing mechanisms to be put in place.
290 291

Banking specific segment – BNI Madagascar SA (“BNI”) (Cont’d) Banking specific segment – BNI Madagascar SA (“BNI”) (Cont’d)
Strengthening of guarantee management Strengthening of recovery management and curing policy (Cont’d)
• Enhancement of the collateral reassessment, especially a meticulous follow-up of the goods market
(iv) Collateral refreshment policy
price evolution.
• Ensure that the mortgaged property is in the name of the client. As part of the monitoring of credit risks, the need for continuous monitoring of the value of the guarantees held by
• Research and study of any local or international guarantee fund mechanisms to enhance the collateral coverage rate the bank is important in order to ensure that these are adequate to cover the outstanding amount. The value of the
by segment, especially for the rescheduled and consolidated loans which are affected directly by the Covid-19 crisis. guarantees is monitored based on the following frequencies:
Strengthening of recovery management and curing policy • When the loan is initially requested;
The following approaches have been adopted to strengthen recovery strategy in this difficult context where debt • When renewing the credit line, categorised as follows;
collection is very complicated:
- Real estate: every 3 years;
• To be more efficient in collection of the Non Performing Loans (NPL) portfolio, a recoverability score mechanism
is now put in place, especially for Corporate and SME NPLs. This approach allows the recovery department to - Vehicles and Equipment: every year;
adopt a proactive strategy for each category;
• Enhancement of NPL report and dashboard to senior management; • Before the establishment of a pledge to ascertain the existence of stocks and to verify whether the stocks are
pledged or not;
Some other specific control and mitigation measures are outlined below:
• At the first release and/or additional release via promissory notes;
(i) Collateral
• On the renewal of promissory notes (generally quarterly)
BNI employs a range of policies and practices to mitigate credit risk. The most common of these is the taking of
security for funds advances, which is common practice. BNI implements guidelines on the acceptability of specific Furthermore, at the request of the Risk Department, guarantee assessment and/or reassessment missions may be
classes of collateral or credit risk mitigation. carried out without considering the above criteria. In addition, the general principles of collateral assessment and
reassessment are mentioned in the collateral management policy of BNI.
The principal collateral types for loans and advances are:
The maximum exposure to credit risk before collateral for the banking segment is as follows:
• Mortgages over residential properties.
• Charges over business assets such as premises, inventory and accounts receivable.
2021 2020
• Charges over financial instruments such as debt securities and equities.
MUR’000 MUR’000
Longer-term finance and lending to corporate entities are generally secured; revolving individual credit facilities
Credit risk exposure to on-balance sheet assets:
are generally unsecured. In addition, in order to minimise the credit loss BNI will seek additional collateral from the
counterparty as soon as impairment indicators are identified for the relevant individual loans and advances. Cash and cash equivalents 7,376,395 6,823,706
Collateral held as security for financial assets other than loans and advances depends on the nature of the Loans to banks - 40,297
instrument. Debt securities, treasury and other eligible bills are generally unsecured, with the exception of asset-
Loans and advances to customers 19,868,113 16,608,651
backed securities and similar instruments, which are secured by portfolios of financial instruments.
Investment in securities 6,205,851 4,706,353
(ii) Lending limits (for loan books)
Trade and other receivables 522,821 532,396
BNI maintains strict control limits on loan books. The amount subject to credit risk is limited to expected future net
cash inflows of instruments, or notional values used to express the volume of instruments outstanding. This credit Export documentary remittances 1,632,865 1,628,367
risk exposure is managed as part of the overall lending limits with customers, together with potential exposures Total on balance sheet exposure 35,606,045 30,339,770
from market movements. Collateral or other security is not always obtained for credit risk exposures on these
instruments, except where BNI requires margin deposits from counterparties. Credit risk exposure to off-balance sheet assets:
Settlement risk arises in any situation where a payment in cash, securities or equities is made in the expectation of Acceptances, guarantees, letter of credit and other obligations on account
a corresponding receipt in cash, securities or equities. of customers 4,635,521 4,797,155
(iii) Financial covenants (for credit related commitments and loan books) Total on and off-balance sheet exposure 40,241,566 35,136,925
The primary purpose of these instruments is to ensure that funds are available to a customer as required. Guarantees
and standby letters of credit carry the same credit risk as loans.
BNI also reviews its concentration risk to ensure that it is not significantly exposed to a specific category of
Documentary and commercial letters of credit – which are written undertakings by BNI on behalf of a customer customers. The table below analyses BNI’s exposure:
authorising a third party to draw drafts on BNI up to a stipulated amount under specific terms and conditions –
are collateralised by the underlying shipments of goods to which they relate and therefore carry less risk than a 2021 2020
direct loan.
MUR’000 Exposure MUR’000 Exposure
Commitments to extend credit represent unused portions of authorised credit in the form of loans, guarantees or
letters of credit. With respect to credit risk on commitments to extend credit, BNI is potentially exposed to loss in Corporate 17,731,660 50% 14,962,308 49%
an amount equal to the total unused commitments. However, the likely amount of loss is less than the total unused Central Bank 3,021,796 8% 10,502,884 35%
commitments, as most commitments to extend credit are contingent upon customers maintaining specific credit
standards (often referred to as financial covenants). Financial institution 9,520,009 27% 2,045,442 7%
BNI monitors the term to maturity of credit commitments since longer-term commitments generally have a Retail 5,332,580 15% 2,829,136 9%
greater degree of credit risk than shorter-term commitments. 35,606,045 30,339,770
292 293

Credit risk measurement Credit risk measurement (Cont’d)
Loans and advances (including loan commitments and guarantees) Based on a historical measurement, BNI adopted a calculated LGD for civil servants, SME and retail segments.
To appropriately reflect the economic value of the amounts recovered, especially with regard to the recovery
The estimation of credit exposure for risk management purposes is complex and requires the use of models, as the time after the contract breach, the use of the present value notion has been integrated into the computation.
exposures vary with changes in market conditions, expected cash flows and the passage of time. The assessment A discounting factor has been applied to have the present value of the recovered amount. Therefore, the LGD rate
of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the is calculated as follows:
associated loss ratios and of default correlations between counterparties.
LGD (%) = 1- (Present value of recovered amount/Outstanding)
In measuring credit risk of loan and advances at a counterparty level, BNI considers three components:
(i) the ‘probability of default’ (PD) by the client or counterparty on its contractual obligations; (ii) current exposures Note:
to the counterparty and its likely future development, from which the bank derives the ‘exposure at default’ (EAD);
and (iii) the likely recovery ratio on the defaulted obligations (the ‘loss given default’) (LGD). The models are reviewed • Present value of recovered amount = (Adjusted outstanding – Write-off – Recovery fees + Write-off recuperation)
regularly to monitor their robustness relative to actual performance and amended as necessary to optimise * Discounting factor
their effectiveness. These credit risk measurements, which reflect expected loss (the ‘expected loss model’), are
• Discounting factor = 1/(1+discount rate)^n
required by the Basel Committee on Banking Regulations and the Supervisory Practices (the Basel Committee) and
are embedded in the bank’s daily operational management. • BNI used the Average Interest Rate as Discount rate, which represents portfolio yield rate by segment.
This is similar to the approach used for the purposes of measuring Expected Credit Loss (ECL) under IFRS 9. • n: number of years between the date of contract breach and the date the file is closed.
(i) Probability of default For others, corporate, institutional and mid-caps, data available is not relevant as the sample is reduced to less than
90 occurrences by year since 2017. For these three last segments, BNI adopted an LGD figure of 65%, which is more
The probability of default (PD) is the likelihood that a particular borrower will default. IFRS 9 requires a multi-period
conservative than Basel III guidelines (45%).
forward-looking measure of PD that depends on macroeconomic factors. In other words, the PD model must
produce a term structure of point in time PDs. Using historical data, a survival model was developed to produce a The table below represents an analysis of BNI’s assets as at 30 June 2021 and 2020:
through-the-cycle PD term structure, followed by an econometric regression of the PDs for calibration to a point
in time term structure over 5 years.
AAA BB/BB CC Unrated Total
(ii) Exposure at default MUR’000 MUR’000 MUR’000 MUR’000 MUR’000
EAD is based on the amounts BNI expects to be owed at the time of default. For example, for a loan this is the face 2021
value. For a commitment, BNI includes any amount already drawn plus the further amount that may have been Credit rating
drawn by the time of default, should it occur. The EAD for term loans, real estate loans and leases is estimated
by calculating the expected exposure for the next 12 months. Firstly, the expected closing balance is estimated Loans and advances to customers 87,059 11,206,527 2,701,593 5,872,934 19,868,113
(assuming the borrower will pay regularly up to the month under observation). Off-balance sheets items comprise Investment in securities - 6,175,053 - 30,798 6,205,851
of Bank Guarantee, Letter of Credit, Acceptance, Swap, Spot and Forward. The EAD of all Off-Balance sheet
items are calculated using the regulatory credit conversion factor - Contractual Cash Flow (‘CCF’) figure of 100%. Cash and cash equivalent - 3,228,539 - 4,147,856 7,376,395
Only the overdraft and the credit limit have a CCF of 50% as they are revolving facilities. Revolving facilities include Trade and other receivables - - 1,459 521,362 522,821
arrangements which allow the facility to be withdrawn, repaid and redrawn again in any manner and any number of
times until the agreement expires. Export documentary remittances - - - 1,632,865 1,632,865
87,059 20,610,119 2,703,052 12,205,815 35,606,045
(iii) Loss given default/loss severity
Off balance sheet exposure 2,083,098 1,713,142 59,293 779,988 4,635,521
Loss given default or loss severity represents BNI’s expectation of the extent of loss on a claim should default
Total on and off-balance sheet 2,170,157 22,323,261 2,762,345 12,985,803 40,241,566
occur. It is expressed as percentage loss per unit of exposure. It typically varies by type of counterparty, type and
seniority of claim and availability of collateral or other credit support. 2020
The measurement of exposure at default and loss given default is based on the risk parameters standard under Credit rating
Basel II. For measuring the exposure for credit risk on a portfolio basis (for example, mortgage loans). Loans and advances to customers 696,987 10,966,024 309,045 4,636,595 16,608,651
For both LGD and PD, BNI segmented its book into Retail, Corporate, Professional - Small and Medium Enterprises Loans and advances to banks - - - 40,297 40,297
(SME), Institutional and Mid-Caps portfolios. We also split portfolios to take into account the existence of a Investment in securities - 4,705,913 - 440 4,706,353
guarantee which suggests a better probability of recovery.
Cash and cash equivalent 50,389 2,910,500 - 3,862,817 6,823,706
Furthermore in 2021, BNI introduced a new segment “Civil Servants” which was previously under the retail segment.
Trade Receivables - - - 532,396 532,396
This is because the risk profile of “Civil Servants” is different from other clients included under the retail segment.
The “Civil Servant” segment which represents almost 50% of the Individual borrower portfolio has a lower LGD than 747,376 18,582,437 309,045 9,072,545 28,711,403
that in private sector as they still have a regular salary transfer. Otherwise, the LGD of these two sub segments
Off balance sheet exposure 923,661 3,670,222 31,154 172,118 4,797,155
has not been split in “WITH GUARANTEE” and “WITHOUT GUARANTEE” with regards of the low number of clients
“WITH GUARANTEE” (2% of the total number of PARTICULIERS). It is normal because this segment rarely has Total on and off-balance sheet 1,671,037 22,252,659 340,199 9,244,663 33,508,558
collateral backed by their credit.
294 295

Credit risk measurement (Cont’d) Credit risk measurement (Cont’d)
BNI’s internal rating scale and mapping of external ratings are set out below: Expected credit loss measurement (ECL) (Cont’d)
The following diagram summarises the impairment requirements under IFRS 9 (other than purchased or originated
Internal RATE
credit impaired financial assets):
ANADEFI PD PD range S &P’S Grade description IFRS9 Staging
A+ 0.001% 0.000% AAA Investment Grade Change in credit quality since initial recognition
A+ 0.001% 0.000% AA+&AA Investment Grade
A 0.010% < 0,01% AA Investment Grade Stage 1 Stage 2 Stage 3
B+ 0.020% 0,02 - 0,04% AA- Investment Grade
B+ 0.020% 0,02 - 0,04% A+ Investment Grade (Significant increase in credit risk since
(Initial recognition) 12-month expected (Credit-impaired assets) Lifetime
B 0.060% 0,04 - 0,08% A Investment Grade initial recognition) Lifetime expected
credit losses expected credit losses
B 0.060% 0,04 - 0,08% A- Investment Grade credit losses
C+ 0.160% 0,08 - 0,16% BBB+ Investment Grade
The key judgements and assumptions adopted by BNI in addressing the requirements of the standard are
C 0.30% 0,16 - 0,32% BBB Investment Grade
discussed below:
C- 0.60% 0,32 - 0,64% BBB- Investment Grade Stage 1
D+ 0.75% 0,64 - 0,85% BB+ Non Investment Grade Significant increase in credit risk (SICR)
D 1.25% 0,85 - 1,28% BB Non Investment Grade
BNI considers a financial instrument to have experienced a significant increase in credit risk when one or more of
D- 1.90% 1,28 - 2,56% BB- Non Investment Grade the following qualitative or backstop criteria have been met.
E+ 5.00% 2,56 - 5,12% B+&B Non Investment Grade Stage 2
E 12.00% 5,12 - 15% B- Non Investment Grade (Watchlist) Qualitative criteria
E- 20.00% > 15% CCC&C Non Investment Grade (Watchlist) Stage 2 or 3 For Retail portfolios, if the borrower meets one or more of the following criteria:
F 100.00% 100.00% D Default (without legal action)
Z 100.00% 100.00% D Default (with legal action) Stage 3 • In short-term forbearance
• Direct debit cancellation

Expected credit loss measurement (ECL)
• Extension to the terms granted
The IFRS 9 impairment model requires the recognition of impairment provisions based on expected credit losses
• Previous arrears within the last (12) months
(ECL) rather than only incurred credit losses as is the case under IAS 39. It applies to financial assets classified at
amortised cost, debt instruments measured at FVOCI, lease receivables, loan commitments and certain financial For Corporate and Investment portfolios, if the borrower is on the Watchlist and/or the instrument meets one or
guarantee contracts. The Bank’s debt instruments that are currently classified as held-to-maturity and measured more of the following criteria:
at amortised cost which meet the conditions for classification at amortised cost under IFRS 9.
• Significant increase in credit spread
IFRS 9 outlines a ‘three-stage’ model for impairment based on changes in credit quality since initial recognition as
summarised below: • Significant adverse changes in business, financial and/or economic conditions in which the borrower operates
• A financial instrument that is not credit-impaired on initial recognition is classified in ‘stage 1’ and has its • Actual or expected forbearance or restructuring
credit risk continuously monitored by BNI.
• If a significant increase in credit risk (SICR) since initial recognition is identified, the financial instrument is moved • Actual or expected significant adverse change in operating results of the borrower
to ‘Stage 2’ but is not yet deemed to be credit impaired. Refer to the next page for a description of how BNI • Significant change in collateral value (secured facilities only) which is expected to increase risk of default
determines when a significant increase in credit risk has occurred.
• If the financial instrument is credit-impaired, the financial instrument is then moved to ‘stage 3’. The definition • Early sign of cashflow/liquidity problems such as delay in servicing of trade creditors/loans
of default and credit-impaired asset has been provided on the next page. The assessment of SICR is performed on a quarterly basis at a portfolio level for all retail financial instruments held
• Financial instruments in stage 1 have their ECL measured at an amount equal to the portion of lifetime expected by the Bank. In addition to Corporate and Investment Financial Instruments, where a watchlist is used to monitor
credit losses that result from default events within the next 12 months. Instruments in stages 2/3 have their credit risk, this assessment is performed at the counterparty level on a quarterly basis. The criteria used to identify
ECL measured on expected credit losses on a lifetime basis. Refer to the next page for a description of inputs, SICR are monitored and reviewed periodically for appropriateness by the independent Credit Risk team.
assumptions and estimation techniques used in measuring ECL.
A backstop is applied and the financial instrument considered to have experienced a significant increase in credit
• A pervasive concept in measuring ECL in accordance with IFRS 9 is that it should consider forward-looking risk if the borrower is more than 30 days past due on its contractual payments.
information.
Definition of default and credit-impaired assets
• Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on
initial recognition. Their ECL is always measured on a lifetime basis (stage 3). Currently BNI does not have any BNI defines a financial instrument as in default, which is fully aligned with the definition of credit-impaired, when it
purchased or originated credit-impaired financial assets on its books. meets one or more of the following criteria:
For expected credit loss provisions modelled on a collective basis, a grouping of exposures is performed on the basis Quantitative criteria
of shared credit risk characteristics, such that risk exposures within a group are homogeneous. BNI’s groupings are
mainly based on product type. The borrower is more than 90 days past due on its contractual payments.
296 297

Qualitative criteria (Cont’d) Measuring ECL- Explanation of inputs, assumptions and estimation techniques (Cont’d)
The borrower meets unlikeliness to pay criteria which indicates the borrower is in significant financial difficulty. LGD are determined based on the factors which impact the recoveries made post default, per customer type and
These are instances where: by secured/unsecured status.
• The borrower is in long-term forbearance The lifetime PD is computed using the survival analysis method. Using historical data, a survival model was developed
• The borrower is deceased to produce a through-the-cycle PD term structure for each portfolio, followed by an econometric regression of the
PDs for calibration to a point in time term structure. The lifetime PD is an aggregate of the years in the term structure.
• The borrower is insolvent The 12-month PD is computed from the term structure as a geometric average of the yearly PDs.
• The borrower is in breach of financial covenant(s)
The assumptions under the ECL calculation- such as how the maturity profile of the PDs and how collateral value
• An active market for that financial asset has disappeared because of financial difficulties change are monitored and reviewed on a quarterly basis. There have been no significant changes in estimation
• Concessions have been made by the lender relating to the borrower’s financial difficulty techniques or significant assumptions made during the reporting period.
• It is becoming probable than the borrower will enter bankruptcy Forward-looking information incorporated in the ECL models
• Financial assets are purchased or originated at a deep discount that reflects the incurred credit losses The calculation of ECL incorporates forward-looking information in the PD model. The PD model projects default
rates using economic forecasts and uses a mean reversion approach i.e., the model assumes that projected
The criteria above have been applied to all financial instruments held by BNI and are consistent with the definition
default rates tend toward the long run average default rate. Together, these allow for the calibration of historical
of default used for internal credit risk management purposes. The default definition has been applied consistently
through-the-cycle PDs to forward-looking point-in-time PDs.
to model the Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD) throughout
BNI’s expected loss calculations. BNI has performed an econometric regression on quarterly historical data to identify the key economic determinants
of credit risk in Madagascar. The regression revealed 4 major economic determinants of default rates namely:
An instrument is considered to be no longer in default (i.e. to have cured) when it no longer meets any default criteria
inflation, trade deficit, the EUR/MGA FX rate, and oil prices. BNIs used the results of the regression together with
for a consecutive period of six instalments or six months. The period of six months/instalments has been determined
economic forecasts of these determinants to arrive at projected default rates.
based on the definition prescribed by the Central Bank, in its Credit Classification and Provisioning guidelines.
Economic forecasts are provided by BNI’s Risk Team on a half-yearly basis and provide the best estimate view
Measuring ECL- Explanation of inputs, assumptions and estimation techniques
of the economy over the next 5 years. Base case forecasts were sourced from trusted third parties (IMF, World
The Expected Credit Loss (ECL) is measured on either a 12-month (12M) or Lifetime basis depending on whether Bank). Expert judgement was applied to arrive at pessimistic case forecasts, reflecting the impact of COVID-19.
a significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be No optimistic case forecasts were derived in the current economic context. Expert judgement also revealed that
credit-impaired. Expected credit losses are discounted product of the Probability of Default (PD), Exposure at these forecasts impact every portfolio the same way and so the same forecasts were used for each.
Default (EAD) and Loss Given Default (LGD), defined as follows:
Base case and pessimistic case point-in-time PDs were produced, and these were averaged to arrive at the final
• The PD represents the likelihood of a borrower defaulting on its financial obligation (as per ‘Definition of default point-in-time PD term structure. Same logic was applied across portfolios and staging.
and credit-impaired’ above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD)
of the obligation. As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree
of inherent uncertainty and therefore the actual outcomes may be significantly different to those projected.
• EAD is based on the amounts BNI expects to be owed at the time of default, over the next 12 months (12M PD), BNI considers these forecasts to represent its best estimate of the possible outcomes.
or over the remaining lifetime (Lifetime EAD). For example, for a revolving commitment, BNI includes the
current drawn balance plus any further amount that is expected to be drawn up to the current contractual Economic variables assumptions
limit by the time of default, should it occur.
The most significant period-end economic assumptions used in the ECL estimate as of 30 June 2021 are set
• Loss Given Default (LGD) represents BNI’s expectation of the extent of loss on a defaulted exposure. LGD varies out below. The scenarios “base case” and “pessimistic case” were used for all portfolios and the rates were the same
by type of counterparty, type and seniority of claim and availability of collateral or other credit support. across all of them. The weightings of each scenario were fixed at 50%. In other words, base case and pessimistic
• LGD is expressed as a percentage loss per unit of exposure at the time of default (EAD). LGD is an estimate case point-in-time PDs were averaged to arrive at a final term structure. No optimistic case was considered.
of loss from a transaction, given that a default occurs. It is computed as the loss amount which equals the
write-offs, recovery costs, finance fees as a proportion of the exposure at the time of default. Other forward-looking considerations not otherwise incorporated within the above scenarios, such as the impact
of any regulatory, legislative or political changes, have also been considered, but are not deemed to have a material
The ECL is determined by projecting the PD, LGD and EAD for each future year and for each individual exposure or impact and therefore no adjustment has been made to the ECL for such factors. This is reviewed and monitored for
collective segment. These three components are multiplied together and adjusted for the likelihood of survival appropriateness on a quarterly basis.
(i.e. the exposure has not prepaid or defaulted in an earlier month). This effectively calculates an ECL for each
future year, which is then discounted back to the reporting date and summed. The discount rate used in the ECL Economic forecasts are provided in the table below. For ease of presenting, yearly forecasts are provided (whereas
calculation is the original effective interest rate or an approximation thereof. The 12-month and lifetime EADs are the model uses quarterly forecasts).
determined based on the expected payment profile, which varies by product type: 2021 2022 2023 2024 2025
• For amortizing products and bullet repayment loans, this is based on the contractual repayments owned by the Inflation Rate Base Case 4.9% 5.7% 6.1% 5.8% 5.7%
borrower over a 12M or lifetime basis. This will be adjusted for any expected overpayments made by a borrower. Pessimistic Case 4.4% 4.5% 4.6% 4.5% 4.3%
Early repayment/ refinance assumptions are also incorporated into the calculation. Change in Trade Balance Base Case (296) (287) (292) (304) (321)
• For revolving products, the exposure at default is predicted by taking current drawn balance and adding a Pessimistic Case (247) (221) (225) (234) (247)
‘credit conversion factor’ (CCF) which allows for the expected drawdown of the remaining limit by adding the Change in EUR/MGA FX Base Case 10.4% 5.0% 5.1% 4.9% 4.7%
time of default. These assumptions vary by product type and current limit utilisation band, based on analysis of Pessimistic Case 11.0% 11.9% 13.7% 13.4% 13.2%
the Bank’s recent default data. Change in Oil Price Base Case 6.2% (1.6%) (1.1%) (0.6%) (0.3%)
Pessimistic Case 15.3% 2.1% 0.3% 0.6% 0.9%
298 299

Sensitivity analysis Loans and advances to banks at amortised cost

The most significant economic assumptions affecting ECL allowance are as follows:
30 June 2021
1. Inflation. Given inflation’s positive correlation with company pricing power as well as the fact that Madagascar Stage 1 Stage 2 Stage 3 Total
government policy tries to increase wages with inflation. Inflation is also a signal of the economic cycle.
MUR’000 MUR’000 MUR’000 MUR’000
2. Change in trade balance. Given that trade deficits reflect higher levels of income, consumer confidence, and Performing - - - -
investment - increasing trade deficits reflect the increasing capacity of consumers to spend – and vice versa.
Special Mention - - - -
3. Change in oil price. Rising oil prices increases raw material costs for companies which may increase default Sub-Standard - - - -
rates.
Gross carrying amount - - - -
4. Change in the real exchange rate (EUR). A real exchange rate depreciation can be found during recessions,
Loss Allowance - - - -
originating from a sequence of low tradable goods shocks, which indicate future default rates.
Carrying amount - - - -
Set out below is a sensitivity analysis on these 4 variables, where each was increased relatively by 25%.
A sensitivity analysis was done to compare the impact on the ECL assuming each of the forward-looking base 30 June 2020
case and pessimistic scenarios were weighted 100% instead of applying scenario probability weights across the
three scenarios. Stage 1 Stage 2 Stage 3 Total
MUR’000 MUR’000 MUR’000 MUR’000
Economic Scenario ECL (MUR) Performing 40,305 - - 40,305
Base Case 1,398,853,815
Pessimistic Case 1,410,575,652
Sub-Standard - - - -
Change 11,721,837
Gross carrying amount 40,305 - - 40,305
Maximum exposure to credit risk - Financial instruments subject to impairment Loss allowance (8) - - (8)
Carrying amount 40,297 - - 40,297
The following table contains an analysis of the credit risk exposure of financial instruments for which an
ECL allowance is recognised. The gross carrying amount of financial assets overleaf also represents BNI’s maximum
exposure to credit risk on these assets: Investment in securities at amortised cost
Loans and advances to customers at amortised cost 30 June 2021
30 June 2021 Stage 1 Stage 2 Stage 3 Total
Stage 1 Stage 2 Stage 3 Total MUR’000 MUR’000 MUR’000 MUR’000
MUR’000 MUR’000 MUR’000 MUR’000 Performing 6,208,272 - - 6,208,272
Performing 16,408,872 - - 16,408,872 Special Mention - - - -

Special Mention - 1,932,844 - 1,932,844 Sub-Standard - - - -
Sub-Standard - - 2,924,133 2,924,133 Gross carrying amount 6,208,272 - - 6,208,272
Gross carrying amount 16,408,872 1,932,844 2,924,133 21,265,849 Loss allowance (2,421) - - (2,421)
Loss Allowance (141,754) (42,807) (1,213,175) (1,397,736) Carrying amount 6,205,851 - - 6,205,851
Carrying amount 16,267,118 1,890,037 1,710,958 19,868,113
30 June 2020
30 June 2020 Stage 1 Stage 2 Stage 3 Total
Stage 1 Stage 2 Stage 3 Total MUR’000 MUR’000 MUR’000 MUR’000
MUR’000 MUR’000 MUR’000 MUR’000 Performing 4,707,271 - - 4,707,271
Performing 15,269,448 - - 15,269,448 Special Mention - - - -
Special Mention - 1,098,128 - 1,098,128
Sub-Standard - - - -
Sub-Standard - - 1,365,909 1,365,909
Gross carrying amount 4,707,271 - - 4,707,271
Gross carrying amount 15,269,448 1,098,128 1,365,909 17,733,485
Loss Allowance (918) - - (918)
Loss Allowance (168,208) (40,607) (916,019) (1,124,834)
Carrying amount 4,706,353 - - 4,706,353
Carrying amount 15,101,240 1,057,521 449,890 16,608,651
300 301

Cash and cash equivalents at amortised cost Off-Balance Sheet items
30 June 2021 30 June 2021

Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Performing 7,377,683 - - 7,377,683 Financial guarantees
Special Mention - - - - Performing 4,605,884 - - 4,605,884
Sub-Standard - - - - Special Mention - 36,412 - 36,412
Gross carrying amount 7,377,683 - - 7,377,683 Sub-Standard - - 10,703 10,703
Loss Allowance (1,288) - - (1,288) Gross carrying amount 4,605,884 36,412 10,703 4,652,999
Carrying amount 7,376,395 - - 7,376,395 Loss allowance (12,389) (728) (4,361) (17,478)
Carrying amount 4,593,495 35,684 6,342 4,635,521
30 June 2020
Stage 1 Stage 2 Stage 3 Total 30 June 2020
MUR’000 MUR’000 MUR’000 MUR’000 Stage 1 Stage 2 Stage 3 Total
Performing 6,824,761 - - 6,824,761 MUR’000 MUR’000 MUR’000 MUR’000
Special Mention - - - - Financial guarantees
Sub-Standard - - - - Performing 4,768,171 - - 4,768,171
Gross carrying amount 6,824,761 - - 6,824,761 Special Mention - 42,951 - 42,951
Loss allowance (1,055) - - (1,055) Sub-Standard - - 5,204 5,204
Carrying amount 6,823,706 - - 6,823,706 Gross carrying amount 4,768,171 42,951 5,204 4,816,326
Loss allowance (12,569) (2,932) (3,670) (19,171)
Trade and other receivables at amortised cost Carrying amount 4,755,602 40,019 1,534 4,797,155
30 June 2021
Collateral and other credit enhancements
Stage 1 Stage 2 Stage 3 Total
BNI employs a range of policies and practices to mitigate credit risk. The most common of these is accepting
MUR’000 MUR’000 MUR’000 MUR’000 collateral for funds advanced. BNI has internal policies on the acceptability of specific classes of collateral or
Performing 521,362 - - 521,362 credit risk mitigation. BNI prepares a valuation of the collateral obtained as part of the loan origination process.
The principal collateral types for loans and advances are:
Sub-Standard - - 2,408 2,408 1. Mortgages over residential properties.
Gross carrying amount 521,362 - 2,408 523,770 2. Charges over business assets such as premises, inventory and accounts receivable; and
Loss Allowance - - (949) (949) 3. Charges over financial instruments such as debt securities and equities.
Carrying amount 521,362 - 1,459 522,821
Longer-term finance and lending to corporate entities are generally secured; revolving individual credit facilities
are generally unsecured. In addition, in order to minimise the credit loss, BNI seeks additional collateral from the
counterparty as soon as impairment indicators are identified for the relevant individual loans and advances.
30 June 2020
Collateral held as security for financial assets other than loans and advances depends on the nature of
Stage 1 Stage 2 Stage 3 Total
the instrument. Debt securities, treasury and other eligible bills are generally unsecured, with the exception of
MUR’000 MUR’000 MUR’000 MUR’000 asset-backed securities and similar instruments, which are secured by portfolios of financial instruments. BNI’s
Performing 530,950 - - 530,950 policies regarding obtaining collateral have not significantly changed during the reporting period and there has
been no significant change in the overall quality of the collateral held by BNI since the prior period.
Sub-Standard - - 2,412 2,412
Gross carrying amount 530,950 - 2,412 533,362
Loss Allowance - - (966) (966)
Carrying amount 530,950 - 1,446 532,396
302 303

BNI closely monitors collateral held for financial assets considered to be credit-impaired, as it becomes more Loss allowance (Cont’d)
likely that the bank will take possession of collateral to mitigate potential credit losses. Financial assets that are
credit-impaired and related collateral held in order to mitigate potential losses are shown below: The following tables explain the changes in the loss allowance during the year due to these factors.
30 June 2021 Loans and advances to customers – Individual
Credit impaired assets Stage 1 Stage 2 Stage 3

Gross Impairment Carrying Fair value of Loss allowance 12-month ECL Lifetime ECL Lifetime ECL Total
Exposure Allowance Amount collateral held
MUR’000 MUR’000 MUR’000 MUR’000
MUR’000 MUR’000 MUR’000 MUR’000
Loss allowance as at 1 July 2019 55,072 1,058 143,405 199,535
Loans and advances to customers: New financial assets originated/purchased/(derecognised) 66,256 3,731 22,397 92,384
Individual 650,362 (295,146) 355,216 27,236 Changes to PDs/LGDs/EADs (22,784) 1,565 35,182 13,963
Professional - SME 587,594 (255,118) 332,476 566,464 Loss allowance as at 30 June 2020 98,544 6,354 200,984 305,882
Mid-Cap 893,858 (352,812) 541,046 3,288,292 New financial assets originated/purchased/(derecognised) 44,052 6,102 102,778 152,932
Transfer to Civil Servant Segment (10,344) (666) (21,095) (32,105)
Institutional 7,322 (2,890) 4,432 3,379
Changes to PDs/LGDs/EADs (64,027) (5,414) (5,156) (74,597)
Corporate 742,004 (292,842) 449,162 1,469,927
Transfers:
Civil Servant 42,993 (14,367) 28,626 -
Transfer from RO to Stage 3 - - 18 18
Total 2,924,133 (1,213,175) 1,710,958 5,355,298 Transfer from Stage 1 to Stage 2 - 1,623 - 1,623
Financial guarantees 10,703 (4,361) 6,342 269,093 Transfer from Stage 1 to Stage 3 - - 13,204 13,204
Total credit-impaired assets 2,934,836 (1,217,536) 1,717,300 5,624,391 Transfer from Stage 2 to Stage 1 205 - - 205
Transfer from Stage 2 to Stage 3 - - 3,519 3,519
30 June 2020 Transfer from Stage 3 to Stage 1 60 - - 60
Transfer from Stage 3 to Stage 2 - 454 - 454
Credit impaired assets Foreign exchange movement 208 26 894 1,128
Gross Impairment Carrying Fair value of
Loss allowance as at 30 June 2021 68,698 8,479 295,146 372,323
Exposure Allowance Amount collateral held
MUR’000 MUR’000 MUR’000 MUR’000
The following table further explains changes in the gross carrying amount of the loans and advances - individual
Loans and advances to customers: portfolio to help explain their significance to the changes in the loss allowance for the same portfolio:
Individual 328,007 (200,984) 127,023 6,203
Stage 1 Stage 2 Stage 3
Professional - SME 317,517 (246,655) 70,862 23,116
Gross carrying amount 12-month ECL Lifetime ECL Lifetime ECL Total
Mid-Cap 415,388 (270,171) 145,217 186,762
MUR’000 MUR’000 MUR’000 MUR’000
Institutional 5,128 (3,333) 1,795 -
Gross carrying amount as at 01 July 2019 1,589,448 60,150 220,624 1,870,222
Corporate 299,869 (194,876) 104,993 240,395
New financial assets originated/purchased/(derecognised) 826,767 38,664 107,383 972,814
Total 1,365,909 (916,019) 449,890 456,476
Gross carrying amount as at 30 June 2020 2,416,215 98,814 328,007 2,843,036
Financial guarantees 5,204 (3,670) 1,534 3,152 Transfer to Civil Servant 734,489 69,913 345,670 1,150,072
Total credit-impaired assets 1,371,113 (919,689) 451,424 459,628 New financial assets originated/purchased/(derecognised) (1,218,048) (63,882) (52,618) (1,334,548)
Transfers:
Loss allowance Transfer from Stage 1 to Stage 2 (21,747) 21,747 - -
Transfer from Stage 1 to Stage 3 (28,266) - 28,266 -
The loss allowance recognised in the period is impacted by a variety of factors, as described below:
Transfer from Stage 2 to Stage 1 6,271 (6,271) - -
• Additional allowances for new financial instruments recognised during the period, as well as releases for Transfer from Stage 2 to Stage 3 - (7,542) 7,542 -
financial instruments derecognised in the period;
Transfer from Stage 3 to Stage 1 1,889 - (1,889) -
• Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular Transfer from Stage 3 to Stage 2 - 5,548 (5,548) -
refreshing of inputs to models; Foreign exchange movement 6,866 281 932 8,079
• Impacts on the measurement of ECL due to changes made to models and assumptions; and Gross carrying amount as at 30 June 2021 1,897,669 118,608 650,362 2,666,639
• Financial assets derecognised during the period.
304 305

Loans and advances to customers – Civil Servant Loans and advances to customers – Professional SME
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3

Loss allowance 12-month ECL Lifetime ECL Lifetime ECL Total Loss allowance 12-month ECL Lifetime ECL Lifetime ECL Total
Loss allowance as at 1 July 2020 - - - - Loss allowance as at 1 July 2019 7,624 233 161,052 168,909
Transfer from Individual segment 10,344 666 21,095 32,105 New financial assets originated/purchased/(derecognised) 2,585 3,281 1,824 7,690
New financial assets originated/purchased/ Changes to PDs/LGDs/EADs (7,301) 985 83,779 77,463
(derecognised) 40,391 1,347 10,834 52,572 Loss allowance as at 30 June 2020 2,908 4,499 246,655 254,062
Changes to PDs/LGDs/EADs (36,908) 1,052 (17,619) (53,475) New financial assets originated/purchased/(derecognised) 1,956 1,212 19,523 22,691
Transfers: Changes to PDs/LGDs/EADs (2,187) (4,410) (13,649) (20,246)
Transfer from Stage 1 to Stage 2 (584) 235 - (349) Transfers:
Transfer from Stage 1 to Stage 3 (96) - 1,286 1,190 Transfer from Stage 1 to Stage 2 (100) 125 - 25
Transfer from Stage 2 to Stage 1 5 (586) - (581) Transfer from Stage 1 to Stage 3 (109) - 2,291 2,182
Transfer from Stage 2 to Stage 3 - (86) 573 487 Transfer from Stage 2 to Stage 1 2 (20) - (18)
Transfer from Stage 3 to Stage 1 6 - (1,407) (1,401) Transfer from Stage 2 to Stage 3 - (290) 3,129 2,839
Transfer from Stage 3 to Stage 2 - 28 (439) (411) Transfer from Stage 3 to Stage 1 3 - (485) (482)
Foreign exchange movement 40 8 44 92 Transfer from Stage 3 to Stage 2 - 300 (3,119) (2,819)
Loss allowance as at 30 June 2021 13,198 2,664 14,367 30,229 Foreign exchange movement 8 4 773 785
The following table further explains changes in the gross carrying amount of the loans and advances – civil servant portfolio to
help explain their significance to the changes in the loss allowance for the same portfolio: The following table further explains changes in the gross carrying amount of the loans and advances – professional
Stage 1 Stage 2 Stage 3 SME portfolio to help explain their significance to the changes in the loss allowance for the same portfolio:
MUR’000 MUR’000 MUR’000 MUR’000
Gross carrying amount as at 01 July 2020 - - - -
MUR’000 MUR’000 MUR’000 MUR’000
New financial assets originated/purchased/(derecognised) 687,824 (10,579) (3,395) 673,850
Gross carrying amount as at 01 July 2020 13,943 (77,150) 474,913 411,706
Transfers:
New financial assets originated/purchased/(derecognised) 4,923 297,820 (157,398) 145,345
Transfer from Individual 1,259,901 50,400 24,247 1,334,548
Gross carrying amount as at 30 June 2020 18,866 220,670 317,515 557,051
Transfer from Stage 1 to Stage 2 (12,154) 12,154 - -
Transfers:
Transfer from Stage 2 to Stage 1 692 (692) - -
Transfer from Stage 1 to Stage 2 (12,054) 12,054 - -
Transfer from Stage 2 to Stage 3 - (1,718) 1,718 -
Transfer from Stage 3 to Stage 1 950 - (950) -
Transfer from Stage 2 to Stage 1 311 (311) - -
Transfer from Stage 3 to Stage 2 - 1,228 (1,228) -
Foreign exchange movement 5,842 233 18,746 24,821
Transfer from Stage 3 to Stage 2 - 1,751 (1,751) -
Foreign exchange movement 88 1,029 1,481 2,598
306 307

Loans and advances to customers – Midcap Loans and advances to customers – Institutional

Loss allowance 12-month ECL Lifetime ECL Lifetime ECL Total Loss allowance 12-month ECL Lifetime ECL Lifetime ECL Total
Loss allowance as at 1 July 2019 29,412 1,144 214,300 244,856 Loss allowance as at 1 July 2019 2 - 793 795
New financial assets originated/purchased/(derecognised) 41,909 21,047 24,528 87,484 New financial assets originated/purchased/(derecognised) 2 - 52 54
Changes to PDs/LGDs/EADs (21,446) 3,839 31,343 13,736 Changes to PDs/LGDs/EADs 2 1 2,489 2,492
Loss allowance as at 30 June 2020 49,875 26,030 270,171 346,076 Loss allowance as at 30 June 2020 6 1 3,334 3,341
New financial assets originated/purchased/(derecognised) 26,744 18,054 83,394 128,192 New financial assets originated/purchased/(derecognised) 38 - 257 295
Changes to PDs/LGDs/EADs (37,996) (22,897) (15,865) (76.758) Changes to PDs/LGDs/EADs 1 (1) (95) (95)
Transfers: Transfers:
Transfer from Stage 1 to Stage 2 (669) 2,834 - 2,165 Transfer from Stage 1 to Stage 2 - - - -
Transfer from Stage 1 to Stage 3 (158) - 14,103 13,945 Transfer from Stage 1 to Stage 3 - - 33 33
Transfer from Stage 2 to Stage 1 546 (1,507) - (1,021) Transfer from Stage 2 to Stage 1 - - - -
Transfer from Stage 2 to Stage 3 - (822) 4,019 3,097 Transfer from Stage 2 to Stage 3 - - 87 87
Transfer from Stage 3 to Stage 1 - - - - Transfer from Stage 3 to Stage 1 1 - (727) (726)
Transfer from Stage 3 to Stage 2 - 339 (4,079) (3,740) Transfer from Stage 3 to Stage 2 - - (7) (7)
Foreign exchange movement 117 66 1,069 1,252 Foreign exchange movement - - 9 9
Loss allowance as at 30 June 2021 38,459 22,097 352,812 413,208 Loss allowance as at 30 June 2021 46 - 2,890 2,936
The following table further explains changes in the gross carrying amount of the loans and advances – The following table further explains changes in the gross carrying amount of the loans and advances –
Midcap portfolio to help explain their significance to the changes in the loss allowance for the same portfolio: Institutional portfolio to help explain their significance to the changes in the loss allowance for the same portfolio:

Gross carrying amount 12-month ECL Lifetime ECL Lifetime ECL Total Gross carrying amount 12-month ECL Lifetime ECL Lifetime ECL Total
Gross carrying amount as at 01 July 2019 1,777,642 89,596 329,692 2,196,930 Gross carrying amount as at 01 July 2019 219,824 608 2,092 222,524
New financial assets originated/purchased/(derecognised) 946,387 137,525 85,696 1,169,608 New financial assets originated/purchased/(derecognised) 319,053 882 3,037 322,972
Gross carrying amount as at 30 June 2020 2,724,029 227,121 415,388 3,366,538 New financial assets originated/purchased/(derecognised) (449,592) 454 3,505 (445,633)
New financial assets originated/purchased/(derecognised) 177,078 160,186 437,947 775,211 Transfers:
Transfers: Transfer from Stage 1 to Stage 2 (2) 2 - -
Transfer from Stage 1 to Stage 2 (77,526) 77,526 - - Transfer from Stage 1 to Stage 3 (84) - 84 -
Transfer from Stage 1 to Stage 3 (35,800) - 35,800 - Transfer from Stage 2 to Stage 1 242 (242) - -
Transfer from Stage 2 to Stage 1 33,696 (33,696) - - Transfer from Stage 2 to Stage 3 - (221) 221 -
Transfer from Stage 2 to Stage 3 - (10,201) 10,201 - Transfer from Stage 3 to Stage 1 1,913 - (1,913) -
Transfer from Stage 3 to Stage 1 13 - (13) - Transfer from Stage 3 to Stage 2 - 9 (9) -
Transfer from Stage 3 to Stage 2 - 7,018 (7,018) - Foreign exchange movement - - 306 306
Foreign exchange movement 10,183 850 1,553 12,586 Gross carrying amount as 30 June 2021 91,354 1,492 7,323 100,169
308 309

Loans and advances to customers – Corporate Concentrations of credit risk

BNI monitors concentrations of credit risk by sector and by geographic location. An analysis of concentrations
of credit risk from loans and advances, loan commitments, financial guarantees and investment securities is
Loss allowance 12-month ECL Lifetime ECL Lifetime ECL Total shown below:
MUR’000 MUR’000 MUR’000 MUR’000
2021 2020
Loss allowance as at 1 July 2019 9,834 1,757 149,001 160,592
MUR’000 MUR’000
(i) Concentration by sector
Changes to PDs/LGDs/EADs (5,933) 160 44,735 38,962
Government 9,333,433 9,333,121
Bank 4,573,839 4,573,686
New financial assets originated/purchased/
Retail - Mortgages 2,542,866 2,542,781
(derecognised) 10,328 7,959 80,609 98,895
Retail - Unsecured 1,775,970 1,775,911
Changes to PDs/LGDs/EADs (8,519) (1,916) 5,171 (5,264)
Corporate – Real estate 1,735,372 1,735,314
Transfers:
Corporate – Transport 663,357 663,335
Transfer from Stage 1 to Stage 2 (6) 89 - 83
Corporate – Others 17,986,303 17,985,701
Transfer from Stage 1 to Stage 3 - - 540 540
Total 38,611,140 38,609,848
Transfer from Stage 2 to Stage 1 129 (218) - (89)
(ii) Concentration by location
Transfer from Stage 2 to Stage 3 - (1,346) 10,770 9,424
Africa 37,511,128 37,509,873
Transfer from Stage 3 to Stage 1 - - (9) (9)
Europe 894,914 894,884
Transfer from Stage 3 to Stage 2 - - (2) (2)
North America 8 8
Foreign exchange movement 57 25 887 969
Asia 205,090 205,083
Total 38,611,140 38,609,848
The following table further explains changes in the gross carrying amount of the loans and advances –
Corporate portfolio to help explain their significance to the changes in the loss allowance for the same portfolio:
(c) Liquidity risk
Stage 1 Stage 2 Stage 3 Banking specific segment
Gross carrying amount 12-month ECL Lifetime ECL Lifetime ECL Total Liquidity risk is the risk that BNI is unable to meet its obligations when they fall due as a result of customer
deposits being withdrawn, cash requirements from contractual commitments, or other cash outflows, such as
MUR’000 MUR’000 MUR’000 MUR’000
corporate payments (tax, dividends, etc). Such outflows would deplete available cash resources for client lending,
Gross carrying amount as at 01 July 2019 8,303,914 453,854 1,220 8,758,988 trading activities and investments. BNI`s liquidity management process is carried out by the group Treasury team.
New financial assets originated/purchased/(derecognised) 1,267,549 96,178 298,649 1,662,376 In extreme circumstances, lack of liquidity could potentially lead to the inability to fulfil regulatory requirement of
Gross carrying amount as at 30 June 2020 9,571,463 550,032 299,869 10,421,364 the Obligatory Reserve (‘OR’). This OR consists of maintaining a minimum monthly average balance (based on daily
closing balances) in BNI’s settlement account at the Central Bank of Madagascar. This threshold is determined for
New financial assets
each current month as 13% of the last month total of individual and corporate customers’ deposits in both MGA and
originated/purchased/(derecognised) (25,296) 611,214 412,433 998,351 foreign currency.
Transfer from Stage 1 to Stage 2 (11,348) 11,348 - - The risk that BNI will be unable to do so is inherent in all banking operations and can be affected by a range of
Transfer from Stage 1 to Stage 3 (1,373) - 1,373 - commercial-specific events – like aggressive campaigns on deposits collection by the competition, or aggressive
self-campaign of loan distribution – or market-wide events like cycles related to the agricultural sector (Vanilla,
Transfer from Stage 2 to Stage 1 64,719 (64,719) - - clover, etc.) or seasonality.
Transfer from Stage 3 to Stage 2 - 4 (4) -
Foreign exchange movement 31,855 1,831 997 34,683
Gross carrying amount as at 30 June 2021 9,630,024 1,082,371 742,003 11,454,398
310 311

(c) Liquidity risk (Cont’d) (c) Liquidity risk (Cont’d)
Liquidity risk management process. Banking specific segment (Cont’d)
BNI’s liquidity management process is carried out within the bank by the finance department and governed by the BNI Madagascar SA Liquidity analysis
monthly ALCO (Assets & Liabilities Committee) and quarterly ALM (Assets & Liabilities Management) committees.
The table below analyses the BNI’s non-derivative financial liabilities into relevant maturity groupings based on
Moreover, there is an operational daily process with a close-of-day report, issued by the dealing room, the remaining period at the end of the reporting period to the contractual maturity date on an undiscounted basis.
summarising the various updated indicators and proposing the next day actions and an updated view on the landing
end-of-month situation. There is a daily calculation of the internal “availability ratio” which is the remaining amount 6-12 No- fixed
of bills available for repo against the deposit base (same base used for OR calculation). The objective is to keep up < 3 months 3-6 months months 1-3 years > 3 years maturity Total
with an availability ratio above 15% (vs the 13% of OR).
Points covered in the monthly meeting include but are not limited to the following: 2021
• Review of market liquidity situation Assets
• Evolution of the total balances above the total Obligatory Reserves Trade and other receivables 522,821 - - - - - 522,821
Loans and advances to
• Central Bank of Madagascar feedback and perspectives
customers 8,829,707 2,593,391 1,638,802 5,341,617 1,869,414 - 20,272,931
• Central Bank of Madagascar feedback short-term and mid-term interventions (lending / borrowing) and Loans and advances to banks - - - - - - -
issuances of treasury bills
Other Financial Assets - - - - - 15,213 15,213
• Review of treasury flows, commerce, loans and deposits projections and borrowings/placements decision
Investment securities 436,874 315,806 1,845,078 4,549,343 - - 7,147,101
funding approach
Export documentary
The available sources of funding for the bank consist of: remittances 1,632,865 - - - - - 1,632,865
• Cash and balance with central bank; (to be noted that the full balance is available as long as the monthly average Cash and cash equivalents 7,376,395 - - - - - 7,376,395
balance exceeds the monthly level of Obligatory Reserves) 18,798,662 2,909,197 3,483,880 9,890,960 1,869,414 15,213 36,967,326
• Balances of nostro accounts; 2021
• Interbank borrowings (overnight); the 4 primary banks, including BNI, are the main actors in the market Liabilities
Deposits from customers 26,829,711 1,223,725 1,111,765 9,867 - - 29,175,068
• Government bonds that are fully liquid and readily acceptable in repurchase agreements with central bank on
an overnight basis; Borrowings 2,191,191 459,696 - - - - 2,650,887
• Central Bank of Madagascar liquidity injection at its discretion to adjust the market liquidity in case of market Trade and other payables 774,480 - - - - - 774,480
shortfall due to macro-economic seasonality; Export documentary
remittances 1,633,936 - - - - - 1,633,936
The liquidity management objective is to fulfil the minimum required balance at the Central Bank of Madagascar
account at any point in time to comply with the OR but also to avoid unproductive excess of balance. In case of Lease liabilities 6,619 12,103 15,975 52,308 4,647 - 91,652
projected shortage, BNI uses interbank borrowing with preferential rates (depending on banks’ liquidity situation) Provision for other liabilities and
and government treasury bills. The utilisation of the funding sources is reported daily and reviewed in the ALCO. charges 2,980 - - - - - 2,980
The maturity gap report slots the inflows and outflows in different maturity buckets as defined by the Bank of 31,438,917 1,695,524 1,127,740 62,175 4,647 - 34,329,003
Madagascar, according to the expected timing of cash flows.
On balance sheet liquidity gap (12,640,255) 1,213,673 2,356,140 9,828,785 1,864,767 15,213 2,638,323
Off balance sheet commitment 3,250,802 - 1,158,175 244,022 - - 4,652,999
Net liquidity gap (9,389,453) 1,213,673 3,514,315 10,072,807 1,864,767 15,213 7,291,322
312 313

(c) Liquidity risk (Cont’d) (c) Liquidity risk (Cont’d)
Banking specific segment (Cont’d) Non-banking specific segment
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through
3-6 6-12 No fixed
an adequate amount of committed credit facilities. The Group and the Company aim at maintaining flexibility in
< 3 months months months 1-3 years > 3 years maturity Total funding by keeping reliable credit lines available. The Directors monitor rolling forecasts of the Group’s liquidity
MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 reserve on the basis of expected cash flow.
2020 The table below analyses the non-derivative financial liabilities of the Group; excluding BNI, and the Company into
Assets relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual
maturity date.
Cash and cash equivalents 6,823,706 - - - - - 6,823,706
Investment securities 1,200,404 403,665 252,936 3,572,442 5,575 - 5,435,022 Between
Loans and advances to Less than 3 months Greater
customers 8,493,686 486,948 1,043,418 4,099,340 4,360,232 - 18,483,624 THE GROUP 3 months and 1 year than 1 year Total
Loans and advances to banks - 42,925 - - - - 42,925 MUR ‘000 MUR ‘000 MUR ‘000 MUR ‘000
Other financial assets - - - - - 15,943 15,943 At 30 June 2021
Trade and other receivables 532,396 - - - - - 532,396 Borrowings 2,656,135 2,388,596 16,570,659 21,615,390
Export documentary Trade and other payables 3,416,891 903,036 13,830 4,333,757
remittances 1,628,367 - - - - - 1,628,367 Provision and other liabilities 35,693 - 62,421 98,114
18,678,559 933,538 1,296,354 7,671,782 4,365,807 15,943 32,961,983 6,108,719 3,291,632 16,646,910 26,047,261
Liabilities
Deposits from customers 23,408,001 598,781 685,790 9,769 98 - 24,702,439
Between
Borrowings 3,147,878 - 452,384 227,831 - - 3,828,093 Less than 3 months Greater
Trade and other payables 415,997 - - - - - 415,997 THE GROUP 3 months and 1 year than 1 year Total
Export documentary MUR ‘000 MUR ‘000 MUR ‘000 MUR ‘000
remittances 1,627,063 - - - - - 1,627,063 At 30 June 2020
Lease liabilities 11,857 11,555 21,831 77,664 11,130 - 134,037 Borrowings 3,649,675 4,701,586 12,988,919 21,340,180
28,610,796 610,336 1,160,005 315,264 11,228 - 30,707,629 Trade and other payables 2,909,517 1,158,289 207,744 4,275,550
On balance sheet liquidity gap (9,932,237) 323,292 136,349 7,356,518 4,354,579 15,943 2,254,354 Provision and other liabilities 3,553 - 60,298 63,851
Off balance sheet 6,562,745 5,859,875 13,256,961 25,679,581
commitment 2,780,274 732,495 986,256 297,383 748 - 4,797,156
Net liquidity gap (7,151,963) 1,055,697 1,122,605 7,653,901 4,355,327 15,943 7,051,510
Between
Less than 3 months Greater
THE COMPANY 3 months and 1 year than 1 year Total
MUR ‘000 MUR ‘000 MUR ‘000 MUR ‘000
At 30 June 2021 254,196 108,642 3,850,955 4,213,793

Borrowings 43,067 - - 43,067
Trade and other payables 297,263 108,642 3,850,955 4,256,860
314 315

45. FINANCIAL RISK MANAGEMENT (CONT’D) 45. FINANCIAL RISK MANAGEMENT (Cont’d)
(c) Liquidity risk (Cont’d) (d) Market Risk (Cont’d)
Non- banking specific segment (Cont’d) (i) Interest rate risk (Cont’d)
Banking specific segment (Cont’d)

Between
Less than 3 months Greater than The table below summarises BNI’s non-trading book fair value exposure to interest rate risks. It includes financial
THE COMPANY 3 months and 1 year 1 year Total instruments at carrying value categorised by the earlier of contractual maturity and date of repricing. The interest
MUR’000 MUR’000 MUR’000 MUR’000 sensitivity of assets and liabilities for the Bank is as follows:
At 30 June 2020 Non-

Borrowings 332,714 276,424 3,229,964 3,839,102 6-12 Interest
< 3 months 3-6 months months 1-3 years > 3 years Bearing Total
Trade and other payables 19,898 - - 19,898
352,612 276,424 3,229,964 3,859,000
2021
Assets
(d) Market Risk
Cash and cash equivalents 3,349,015 - - - - 4,027,380 7,376,395
Market Risk arises from activities undertaken in or impacted by financial markets. This includes interest rate risk,
currency risk, and price risk. Investment securities 425,275 304,142 1,725,855 3,750,579 - - 6,205,851
Loans and advances to customers 8,804,036 2,567,980 1,569,625 5,094,451 1,832,021 - 19,868,113
(i) Interest rate risk
Loans and advances to banks - - - - - - -
Banking specific segment
Other investments - - - - - 15,213 15,213
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
Trade and other receivables - - - - - 522,821 522,821
in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate
because of changes in market interest rates. BNI takes on exposure to the effects of fluctuations in the prevailing Export documentary remittances - - - - - 1,632,865 1,632,865
levels of market interest rates on both its fair value and cash flow risks. Interest margins may increase as a result of 12,578,326 2,872,122 3,295,480 8,845,030 1,832,021 6,198,279 35,621,258
such changes but may induce losses in the event that unexpected movements arise.
Liabilities
The Board sets limits on the level of mismatch of interest rate repricing and value at risk that may be undertaken,
Deposits from customers (27,252,749) (767,312) (1,059,149) (8,947) (44) - (29,088,201)
which is monitored daily by Group Treasury.
Borrowings (2,180,000) (457,800) - - - - (2,637,800)
Treasury Bonds
Trade and other payables - - - - - (774,480) (774,480)
The Treasury Bonds are held until maturity. They are valued at cost and bear a fixed interest rate. Following local
Export documentary remittances - - - - - (1,633,936) (1,633,936)
applicable rules in Madagascar, the bonds are not revalued at market price at maturity.
Provision for other liabilities and
Interbank placements are also at a fixed interest rate. charges - - - - - (2,980) (2,980)
Bonds in foreign currencies are placed for a period between 3 to 6 months, at a pre-agreed rate. Other payable and deferred
revenue - - - - - (174,600) (174,600)
Clients transactions
(29,432,749) (1,225,112) (1,059,149) (8,947) (44) (2,585,996) (34,311,997)
BNI’s prime lending rate is indexed on the Prime Lending Rate (‘PLR’) of the Central Bank of Madagascar, which is Off-Balance Sheet items
then used to determine the different applicable rates for credit lending. The Central Bank’s Prime Lending Rate attracting interest rate sensitivity 3,250,802 - 1,158,175 244,022 - - 4,652,999
increased from 8.3% to 9% in May 2017 and was subsequently increased to 9.5% on 9 November 2017. BNI’s Prime
Lending Rate has remained unchanged at 14.9% since 2009. Interest rate sensitivity gap (13,603,622) 1,647,010 3,394,506 9,082,527 1,852,763 3,612,283 5,985,467
Most of BNI’s credit is at a variable rate indexed to the PLR, hence more or less fixed (unchanged since 2009).
There is no correlation between the rates on the government bonds and the prime lending rate applied by BNI.
Deposits are remunerated at a fixed rate.
BNI manages the net interest margin rather than the actual rates on lending and deposits. The deposit rates and
lending rates are discussed and agreed during monthly ALCO meetings, depending on the liquidity situation of BNI.
316 317

45. FINANCIAL RISK MANAGEMENT (Cont’d) 45. FINANCIAL RISK MANAGEMENT (Cont’d)
(d) Market Risk (Cont’d) (d) Market Risk (Cont’d)
(iv) Interest rate risk (Cont’d) (i) Interest rate risk (Cont’d)
Banking specific segment (Cont’d) Banking specific segment (Cont’d)
BNI is exposed to interest rate risk as it borrows funds at floating interest rates. BNI’s policy is to minimise exposure
Non-
to interest rate movements without exposing itself to speculation or undue risk. BNI manages its exposure to
3-6 6-12 Interest fluctuations in interest rates with a view to containing its net interest costs or securing its interest revenues through
< 3 months months months 1-3 years > 3 years Bearing Total the purchase of certain hedging instruments such as interest rate caps, floors, swaps or forward rate agreements.
The current policy is to have a good mix of fixed and variable interest rate.
2020
Interest rate sensitivity analysis
Assets
Cash and cash equivalents 2,961,444 - - - - 3,862,261 6,823,705 The sensitivity analysis below has been determined based on the exposure to interest rates for both financial assets
and liabilities at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the
Investment securities 1,175,492 382,749 238,194 2,905,518 5,318 - 4,707,271 amount of liability outstanding at the end of the reporting period was for the whole year. A 1% change is used and
Loans and advances to customers 5,275,772 482,440 951,333 3,455,063 3,286,003 4,282,270 17,733,481 represents management’s assessment of the likely change in interest rate.
Loans and advances to banks - 40,305 - - - - 40,305 If interest rates had changed by 1% and all other variables were held constant, the impact on profit or loss would be
Other investments - - - - - 15,943 15,943 as follows:
Trade and other receivables - - - - - 532,396 532,396 THE GROUP

Export documentary remittances - - - - - 1,628,367 1,628,367 2021 2020
9,412,708 905,494 1,189,527 6,360,781 3,291,321 10,321,837 31,481,468 MUR’000 MUR’000
Liabilities 1% increase in interest rate 23,500 (9,291)
Deposits from customers (23,851,718) (346,427) (428,879) (8,182) (71) - (24,635,277) 1% decrease in interest rate (23,500) 9,291
Borrowings (1,573,500) - (451,070) (227,011) - - (2,251,581)
Trade and other payables - - - - - (415,997) (415,997) BNI has a net asset exposure of MUR 2.35Bn as at 30 June 2021 compared to a net liability exposure of MUR 929M
Export documentary remittances - - - - - (1,627,063) (1,627,063) as at 30 June 2020
Provision for other liabilities and

charges - - - - - (54,509) (54,509)
Other payables and deferred
revenue - - - - - (148,044) (148,044)
(24,425,218) (346,427) (879,949) (235,193) (71) (2,245,613) (29,132,471)
Off-Balance Sheet items

attracting interest rate sensitivity 2,792,607 735,744 990,630 278,374 751 - 4,798,106
Interest rate sensitivity gap (13,219,903) 1,294,811 1,300,208 6,403,762 3,292,001 8,076,224 7,147,103
318 319

(i) Interest rate risk (Cont’d) (ii) Currency risk (Cont’d)
Non-banking specific segment USD EURO MGA Total

The Group is exposed to interest rate cash flow as it borrows at variable and fixed rates. This risk is somehow MUR’000 MUR’000 MUR’000 MUR’000
mitigated by non-current receivables and loans at call being granted at variable rates.
Liabilities
The risk for the group is managed by maintaining an appropriate mix between fixed and floating rate borrowings, Banking specific segment
and the use of interest rate swap contracts.
Trade and other payables - - 774,480 774,480
Had interest rate on financial liabilities changed by 1%; with all other variables held constant, the effect on profit or
Deposits from customers 1,651,019 2,133,139 25,304,043 29,088,201
loss would be as follows for the Group, excluding BNI.
Borrowings - - 2,637,800 2,637,800
THE GROUP THE COMPANY Export documentary remittances - - 1,633,936 1,633,936
2021 2020 2021 2020 Provision for other liabilities and charges - - 2,980 2,980
MUR’M MUR’M MUR’M MUR’M Other payables and deferred revenue - - 174,600 174,600
1% increase in interest rate (91) (103) (5) (6) Lease Liability - - 91,651 91,651
1% decrease in interest rate 91 103 5 6 Total Liabilities 1,651,019 2,133,139 30,619,490 34,403,648
Net on balance sheet position 433,432 119,863 663,526 1,216,821
(ii) Currency risk
Banking specific segment USD EURO MGA Total

MUR’000 MUR’000 MUR’000 MUR’000
BNI takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial
position and cash flows. The Central Bank has set the limit to 20% of Available Tier 1 Capital and the bank has set an At June 30, 2020
internal threshold of 13%. The accounting department provides this information to the Trading Floor for effective
Assets
monitoring of the limit.
Furthermore, an internal report is issued on a daily basis, and a monthly report is sent to the Central Bank on a
monthly basis. Investments in other financial assets - - 15,943 15,943
Investment securities - - 4,706,353 4,706,353
Control mechanisms in place in case of a substantial change in the exchange rate are listed below:
Loans and advances 350,036 602,471 15,656,141 16,608,648
- If there is a strong appreciation of the Ariary, the Bank takes a short position for up to 13%.
Loans and advances to banks - 40,297 - 40,297
- In the event of a strong depreciation, the Bank may go long and up to 13%. Trade and other receivables 12,952 - 519,444 532,396
BNI is primarily exposed to USD and EUR. Export documentary remittances 1,187,927 150,446 289,994 1,628,367
The Banking segment financial assets and financial liabilities by foreign currency is detailed below: Cash and cash equivalents 1,584,909 1,309,548 3,929,248 6,823,706
Total Assets 3,135,824 2,102,762 25,117,123 30,355,709
USD EURO MGA Total
MUR’000 MUR’000 MUR’000 MUR’000
USD EURO MGA Total
At June 30, 2021
MUR’000 MUR’000 MUR’000 MUR’000
Assets
Liabilities
Investments in other financial assets - 597 14,616 15,213
Trade and other payables 1,953 53,105 360,940 415,998
Investment securities - - 6,205,851 6,205,851
Deposits from customers 1,963,051 1,541,526 21,104,148 24,608,725
Loans and advances to customers 495,403 534,478 18,838,232 19,868,113
Borrowings - 227,011 2,024,570 2,251,581
Trade and other receivables - - 522,821 522,821
Export documentary remittances 1,187,927 289,998 149,138 1,627,063
Export documentary remittances - - 1,632,865 1,632,865
Provision for other liabilities
Cash and cash equivalents 1,589,048 1,717,927 4,069,419 7,376,394
and charges - - 54,509 54,509
Total Assets 2,084,451 2,253,002 31,283,804 35,621,257
Other payables and deferred revenue - - 148,044 148,044
Lease Liability - - 61,601 61,601
Total Liabilities 3,152,931 2,111,640 23,926,950 29,167,521
Net on balance sheet position (17,107) (8,878) 1,214,173 1,188,188
320 321

(ii) Currency risk (Cont’d) The following table details the Group’s; excluding BNI sensitivity to a 5% change in MUR against the
relevant currencies.
The following table details the banking segment’s sensitivity to a 5% change in the rupee against the relevant
foreign currencies: THE GROUP
2021 2020 2021 2020
Profit or loss Equity Profit or loss Equity Profit or loss Profit or loss
MUR’M MUR’M MUR’M MUR’M MUR’M MUR’M
MUR/USD exchange rate – increase 5% (21) (21) 0.9 0.9 MUR/USD exchange rate – increase 5% 27 56
MUR/USD exchange rate – decrease 5% 21 21 (0.9) (0.9) MUR/USD exchange rate – decrease 5% (27) (56)
MUR/EUR exchange rate – increase 5% (5) (5) 0.4 0.4 MUR/EUR exchange rate – increase 5% 144 220
MUR/EUR exchange rate – decrease 5% 5 5 (0.4) (0.4) MUR/EUR exchange rate – decrease 5% (144) (220)
MUR/GBP exchange rate – increase 5% 15 13
Non-banking specific segment MUR/GBP exchange rate – decrease 5% (15) (13)
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures. MUR/ZAR exchange rate – increase 5% (27) (17)
MUR/ZAR exchange rate – decrease 5% 27 17
The Group has a treasury department in place where foreign exchange exposure risk is monitored and managed.
If necessary, management can also use financial instruments to hedge currency risk.
The Company does not have significant exposure to foreign currencies. Therefore, no sensitivity analysis has been
The Group is primarily exposed to USD, EUR, GBP and ZAR. Foreign exchange risk arises from future performed.
commercial transactions.
(iii) Price risk
Forward contracts are used to mitigate foreign currency risks.
The Group is exposed to equity securities price risk because of investments held by the Group and classified on the
The following table details the Group’s exposure to foreign currencies as at 30 June 2021 and 30 June 2020: consolidated statement of financial position as financial assets and FVOCI.
THE GROUP To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.
2021 2020 Diversification of the portfolio is done in accordance with the limits set by the Group.
Profit or loss Profit or loss
Sensitivity analysis
MUR’M MUR’M
The table below summarises the impact of a change in the fair value of the investments in other financial assets
USD (541) (1,115) on the Group’s equity. The analysis is based on the assumption that the fair value had changed by 5%, with other
EUR (2,871) (4,410) factors remaining constant.
GBP (298) (277)
ZAR 532 355
2021 2020 2021 2020
Others (284) (1,233)
MUR’M MUR’M MUR’M MUR’M
Financial asset at fair value through OCI 23.0 18.6 1.3 1.4
CIEL Ltd, the Company, does not have significant exposure to foreign currencies. Therefore, no sensitivity analysis
has been performed as the amount will be immaterial.
(e) Fair value estimation
The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the
reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly
occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by
the Company/Group is the current bid price. These instruments are included in level 1. Instruments included in
level 1 comprise primarily quoted equity investments classified as trading securities or available-for-sale.
322 323

(e) Fair value estimation (Cont’d) Categories of Financial Instruments (Cont’d)
The fair value of financial instruments that are not traded in an active market is determined by using valuation THE COMPANY
techniques. These valuation techniques maximise the use of observable market data where it is available and rely
as little as possible on specific estimates. If all significant inputs required to fair value an instrument are observable, Notes 2021 2020
the instrument is included in level 2. MUR’000 MUR’000
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Financial assets
Specific valuation techniques used to value financial instruments are disclosed in Note 2. Amortised cost
Trade and other receivables* 19 318,665 15,132
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to
approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by Cash and cash equivalent 20 6,797 25,649
discounting the future contractual cashflows at the current market interest rate that is available to the Group 325,462 40,951
for similar financial instruments.
FVOCI
Categories of Financial Instruments
Investments in other financial assets 15 25,011 28,928
THE GROUP Investments in subsidiary companies 12 18,243,634 12,928,917
Notes 2021 2020 Investments in Joint Ventures 13 89,908 35,371
MUR’000 MUR’000 Investments in associates 14 227,040 75,028
Financial assets 18,585,593 13,068,244
Amortised cost
Investment in securities 24 6,208,017 4,712,534 2021 2020
Loan to banks 23 - 40,297
MUR’000 MUR’000
Loans and advances to customers 22 19,868,113 16,608,651
Financial liabilities
Non-current receivables 17 49,259 45,663
Amortised costs
Trade and other receivables* 19 4,474,020 4,577,441
Cash and cash equivalent 20 9,931,175 8,239,849 Borrowings 29 3,203,353 2,968,442
40,530,584 34,224,435 Trade and other payables 34 43,067 19,898

3,246,420 2,988,340
THE GROUP
*Trade and other receivables exclude prepayments of MUR 118,000 (2020: NIL).
Notes 2021 2020
MUR’000 MUR’000 (e) Capital risk management
FVOCI The Group’s objective when managing capital are:
Investments in other financial assets 15 459,852 372,497
• to safeguard the Group’s ability to continue as a going concern, so that it can continue to provide returns for
459,852 372,497 shareholders and benefits for other stakeholders, and
FVPL
• to provide an adequate return to shareholders.
Derivative financial instruments 42 74,380 107,479
74,380 107,479 The Group manages the capital structure and makes adjustments to it in light of changes in economic conditions
and the risk characteristics of the underlying assets in order to maintain or adjust the capital structure, the Group
Financial liabilities may adjust the amount of dividends paid, issue new shares or sell assets.
Amortised costs
The assets of the Company are financed through equity and borrowings.
Borrowings 29 19,349,632 20,575,466
Lease liabilities 9(b) 3,265,163 3,559,333 Banking segment
Trade and other payables** 34 6,568,845 5,827,022 The minimum required capital adequacy ratio in Madagascar is 8%. As at 30 June 2021 and 2020, the capital adequacy
29,183,640 29,961,821 ratio of BNI was as follows:
2021 2020
For fair value hierarchy please refer to Note 42.
Capital base MUR’ M 2,282 1,970
*Trade and other receivables exclude advance payments of MUR 556M (2020: MUR 366M), prepayments amounting
Risk weighted MUR’ M 22,701 18,800
to MUR 247M (2020: MUR 152M), taxes and grants of MUR 319M (2020: MUR 335M) and deposits of MUR 16M
(2020: MUR 48M). Capital adequacy ratio % 10.05 10.48
**Trade and other payables exclude client advances amounting to MUR 330M (2020: MUR 316M) and deposits from
customers MUR 159M (2020: MUR 221M) .
324 325

45. FINANCIAL RISK MANAGEMENT (Cont’d) 46. PRIOR YEAR RESTATEMENT (Cont’d)
(f) Capital risk management As previously Prior year Discontinued
Non-banking specific segment stated restatements Note operations As restated
MUR’000 MUR’000 MUR’000 MUR’000
The gearing ratio, excluding banking deposits, lease liabilities and cash and cash equivalents, as at June 30, 2021
is as follows: 2020
Consolidated statement of financial
THE GROUP THE COMPANY position (extract)
2021 2020 2021 2020 Property, plant and equipment 24,920,225 92,962 A - 25,013,187
MUR’000 MUR’000 MUR’000 MUR’000 Right of use assets 3,248,457 (210,362) A - 3,038,095
Total debt 16,711,832 18,494,395 3,203,353 2,968,441 Retained earnings (2,540,467) (38,719) A - (2,579,186)
Non-controlling interests (7,292,242) (38,561) A - (7,330,803)
Less Cash and cash equivalents (2,554,780) (1,416,143) (6,798) (25,649)
Borrowings and lease liabilities (20,575,466) (170,510) A, B - (20,745,976)
14,157,052 17,078,252 3,196,555 2,942,792
Lease liabilities (3,769,816) 210,483 A - (3,559,333)
Total equity 22,185,136 18,613,758 15,664,672 10,120,412 Deferred income tax liabilities (1,471,979) (15,803) A - (1,487,782)
Net debt + equity 36,342,188 35,692,010 18,861,228 13,063,204 Trade and other payables (6,534,921) 170,510 B - (6,364,411)
Gearing 39.0% 47.8% 16.9% 22.5% Consolidated statement of profit
or loss (extract)
Revenue (21,923,306) - 967,686 (20,955,620)
46. PRIOR YEAR RESTATEMENT
Earnings before interest, tax,
During the year ended 30 June 2021, the Company re-stated the corresponding figures due to the following: depreciation, amortisation, impairments,
reorganisation costs and fair value gain
1. Prior year re-statements as detailed in note 46(a); and on investment property (3,131,548) 30,739 A 48,115 (3,052,694)
Depreciation and amortisation 1,515,738 (4,222) A (170,283) 1,341,233
2. Discontinued operations as detailed in note 47.
Impairment of non-financial assets 1,281,316 - (642,858) 638,458
The following tables summarise the impact of the adjustments: Finance income (46,654) - (801) (47,455)
Finance costs 1,589,532 (11,100) A (91,731) 1,486,701
As previously Prior year Discontinued
stated restatements Note operations As restated Income tax 215,425 - (26,352) 189,073
Loss attributable to owners 1,671,990 7,723 A - 1,679,713
MUR’000 MUR’000 MUR’000 MUR’000
Loss attributable to non-
2019 controlling interests 490,737 7,694 A - 498,431
Consolidated statement of financial Consolidated statement of changes
position (extract) in equity (extract)
Property, plant and equipment 24,678,838 (78,096) A - 24,600,742 Retained earnings 2,540,467 38,719 A - 2,579,186
Inventories 3,842,766 (43,525) A - 3,799,241 Non-controlling interests 7,292,242 38,561 A - 7,330,803
Retained earnings (5,115,438) (46,442) A - (5,161,880) Consolidated statement of cash
flows (extract)
Non-controlling interests (9,195,956) (46,255) A - (9,242,211)
Operating activities
Borrowings and lease liabilities (17,446,145) 147,951 A, B - (17,298,194) Loss before income tax from continuing
Deferred income tax liabilities (1,208,158) (15,803) A - (1,223,961) operations - 15,417 A (856,558) 1,106,161
Trade and other payables (6,585,702) 82,170 B - (6,502,532) Loss before income tax from discontinued
operations - - 856,558 856,558
Consolidated statement of changes
in equity (extract) Depreciation and amortisation (1,515,738) 4,222 A - (1,511,516)
Unrealised exchange difference 124,300 (18,646) A - 105,654
Retained earnings (5,115,438) (46,442) A, B - (5,161,880)
Interest expense (1,220,603) 11,100 A - (1,209,503)
Non-controlling interests (9,195,956) (46,255) A, B - (9,242,211)
Interest paid 855,026 (11,100) A - 843,926
Financing activities
Repayment of principal element of lease 290,048 (993) A - 289,055
A. In the prior years, one of the subsidiaries of SUN Limited sold 90 villas to various investors under the Invest
Hotel Scheme (“IHS”), and immediately leased them back until the end of the underlying Government
land lease. The villas were subsequently classified as property, plant, and equipment in 2018, with a smaller
portion capitalised as inventories, with a corresponding lease liability, accounted for at the present value of
the minimum lease payments.
326 327

46. PRIOR YEAR RESTATEMENT (Cont’d) 47. DISCONTINUED OPERATIONS (Cont’d)

Following a review of all the agreements between the SUN Group and the IHS owners, the following prior year b. Textile segment
adjustments were identified:
On 28 August 2021, CIEL Textile Limited (CTL) entered a strategic partnership with the SOCOTA group in Madagascar
• Derecognition of the property, plant and equipment and corresponding lease liabilities for 57 out of the 90 villas to combine over 90 years of woven fabric expertise. The partnership involves a significant change in the operations
on the ground that these agreements have no fixed guaranteed payments, hence did not meet the criteria for of Consolidated Fabric Limited (CFL), whose assets and liabilities have been stated as ‘assets classified as held for
capitalisation; sale’ and ‘liabilities directly associated with assets classified as held for sale’ respectively. It is also important to
note that a regeneration project will be conducted on the existing sites of CFL to ensure that new activities are
• Retranslation of the lease liabilities, denominated in foreign currencies, for the remaining 33 villas to developed in the region.
Mauritian Rupees at the closing rates; and
c. Disposal of shares in International Air Ambulance Limited
• Following the adjustment identified per note (i) above, a reassessment of the impairment of the cash generating
units was performed at 30 June 2019, which resulted in the reversal of MUR 81.7m of impairment of property, With effect from 30 June 2021, Ciel Healthcare Limited through International Medical Group Limited disposed of
plant and equipment previously recognised and the reversal of the related deferred income tax impact. its investments in International Air Ambulance Limited, a company incorporated in Uganda. The Combined results
of the discontinued operations included in the profit for the year are set out below. The comparative profit and
B . Accrued interest on borrowings which was incorrectly reported as ‘Trade and other payables,’ has now been cash flows from discontinued operations have been presented to include operation classified as discontinued
reclassified to ‘borrowings’ (2020: MUR 170.5m, 2019: MUR 82.2m). during the year.
47. DISCONTINUED OPERATIONS d. An analysis of the result of discontinued operations are as follows
Accounting policies THE GROUP
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and 2021 2020
that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated MUR’000 MUR’000
plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view
to resale. The results of discontinued operations are presented separately in the statement of profit or loss. Revenue 963,745 967,686
Earnings before interest, tax, depreciation and amortisation and impairment
a. Hotels and Resorts segment
265,639 48,115
During the financial year ended 30 June 2021, SUN Limited disposed the assets of Kanuhura in Maldives to Leisure
Depreciation and amortisation (98,526) (170,283)
Ocean Private Limited. The strategic decision to move out of the Maldives was taken before the COVID-19 pandemic
so that the SUN can refocus its resources on its portfolio of properties in Mauritius and reduce its gearing level in Impairment of non-financial assets (392,049) (642,582)
the future. The transaction was successfully completed on 03 May 2021 and proceeds on disposal amounting to
Impairment of financial assets - (276)
USD 41.5M were received in cash. SUN Limited recognised a profit on disposal of the assets of MUR 29M, detailed
as follows: Net finance costs (62,601) (91,532)
Loss before income tax (287,537) (856,558)
Hotels and Resorts
Income tax credit/(change) 40,156 (26,352)
2021 2020
Loss for the period from discontinued operation (247,381) (882,910)
MUR’000 MUR’000
Consideration received - cash and cash equivalents 1,676,600 -
Less cost to sell (42,646) -
1,633,954 -
Less net book value of assets disposed (1,604,918) -
Profit on disposal of assets 29,036 -
The profit on disposal is included in the profit or loss for the year from discontinued operations in the consolidated
financial statements.
The carrying amounts of assets and liabilities as at the date of disposal (03 May 2021) were:
2021 2020
MUR’000 MUR’000
Property, plant and equipment 1,604,918 -
328 329
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2021 (CONT’D)
47. DISCONTINUED OPERATIONS (Cont’d)

d. An analysis of the result of discontinued operations are as follows: (Cont’d)
2021 2020
MUR’000 MUR’000
Loss on discontinued operations attributable as follows:
Owners of the parent (137,944) (491,919)
Non-controlling interests (109,437) (390,991)
(247,381) (882,910)
Net cash flows from discontinued operations
Operating cash flows (1,080,958) 265,578
Investing cash flows 1,650,646 (59,082)
Financing cash flows (613,216) (9,121)
(43,528) 197,375
2021 2020
Basic and diluted earnings per share
Loss attributable to owners from discontinued operations MUR’000 (137,944) (491,919)
Weighted average number of ordinary shares 1,686,967 1,682,664
Loss per share MUR’000 (0.08) (0.29)
2021 2020
MUR’000 MUR’000
Loss on discontinued operations by segment:
Hotels and resorts segment (244,927) (778,061)
Textile segment (26,930) (99,604)
Healthcare segment 24,476 (5,245)
(247,381) (882,910)
Net cash flows from operations by segment:
Hotels and resorts segment (9,749) 4,399
Textile segment (29,572) 26,532
Healthcare segment (4,207) 166,444
(43,528) 197,375
48. SUBSEQUENT EVENTS

CIEL Healthcare Ltd
On 25 June 2021, the Board and shareholders of C-Care (Mauritius) Limited approved the issue of up to a maximum
of 500 unquoted redeemable preference share at an issue price of MUR 100,000 per Redeemable Preference Share,
by way of private placement.
On 18 August 2021 CHL disposed of its investment in Hygeia Nigeria Limited.
There were no other events after the reporting date which require disclosures in or amendments to these
financial statements.
330 331
Henri
332
CLAUS Felix
DALAIS Marc
CAUSY Navin
BOCUS Sidick
CAUDE Alexis
AMELOT Marc
DANON Pierre
Dr. CLARKE Ian

DALAIS Thierry
DORCHIES Eric
BEGUE Mickael
BRAUD Damien
DEMEY Laurent
BOULLÉ Patrick
ABITBOL Arnaud
ECHEVIN Hélène
CHIDAINE Xavier
ABITBOL Laurent
AUFORT Aurélien
AGGARWAL Kapil
DALAIS P. Arnaud
DALAIS Guillaume
ACKERMAN André
BEZARA Rakotobe
CARAYON Bernard
CHOOLUN Shamad
BROCCHETTO Dora
DURR Elaine Mercia

DALAIS Jean-Pierre
CHAKOWA Sharmila
DELAPORTE Antoine
Dr. SEBUYIRA Jeff M.

COURTENAY Anthony
CLAIR Mathe-Lisenda
EL GUEDDARI Adnane
BOSQUET Jean-Pierre
BHEENICK Lakshmana
CHUNG KIM YUEN Clive
ESPITALIER NOEL Roger

COURTENAY Gavin Peter
ABDOOLAKHAN Shahana
BHUGRA Bharat Bhushan
D'ARGENT Jean Luc Gilles

BAUSSOO Dharamdeosingh
DUGLAT Sandrine Claire Ony
ESPITALIER-NOEL Alexandre
COUVE DE MURVILLE Jérôme
DESVAUX DE MARIGNY Olivier

DE CHASTEAUNEUF L. Jérôme
BADIDA Murali Krishna Nagesh
DOOKHAN Muhammad Nishaan Ali

R
R
Ajax Sweaters Ltd
Ambre Resort Ltd
✓
R ✓
Anahita Hotel Ltd
Antsirabe Knitwear SA
R
R
R
A
Aquarelle Clothing Ltd
✓
Aquarelle India (Private)Ltd
R ✓ ✓
Aquarelle International Ltd
✓ ✓
Aquarelle Madagascar SA
Azur Financial Services Ltd
✓
✓
BNI Madagascar SA
✓ ✓ R
✓
Bois des Amourettes Ltd
✓ R ✓
C Healthcare (EA) Ltd
R
R
A
C-Care (Mauritius) Ltd
✓ A
A
C-Care North Ltd
R
A
A
CDL Knits Ltd
R
R R
CIEL Agro Limited (formerly known as CIEL Agro & Properties Limited
R ✓ ✓
R R ✓
✓
R ✓ ✓
CIEL Corporate Services Ltd
CIEL Finance Data Services Limited
A A
✓
✓
✓
Ciel Finance Limited
CIEL Healthcare Africa Limited
✓ ✓
✓
CIEL Healthcare Ltd
✓
✓ ✓
CIEL Hotels & Resorts Ltd
R
CIEL Properties Development Ltd (formerly known as CIEL Properties Limited
✓ ✓ ✓ ✓ ✓ A
A
A
A
A A
CIEL Properties Limited
✓
Cieltex SA Pty Ltd
✓
✓
✓
✓
✓
✓
✓
CIELTextile Ltd
✓ A
A
A
Centre de Radiotherapie de l’Ocean Indien
City & Beach Hotels (Mtius) Ltd
R
R
R
A
Consolidated Fabrics Ltd
R R R
CTL Retail Ltd
R
A
Ebene Skies Ltd
A: Appointed as director during the year R: Resigned as director during the year AD: Alternate Director R*: Resigned on 30.06.2021
✓
✓
✓
EM Insurance Brokers Limited
✓
Falaise Rouge Estate Ltd
✓ ✓ ✓ ✓
R ✓
✓
✓ ✓
Ferney Ltd
Ferney Agri Hub Ltd
Ferney Bubbles Ltd
Ferney Development Ltd
R
R
R
R
A A A R
Ferney Spinning Mills Ltd
Ferney Trail Limited
Floreal International Ltd
R
R
R
R
R R
Floreal Knitwear Ltd
R
Floreal Madagascar SA
Floreal Property Limited
✓ ✓
Floreal Trading Limited
✓
Greensun Management Ltd

APPENDIX A - DIRECTORSHIPS OF SUBSDIARIES - FY 2021
Halifax International Ltd
✓
Healthcare East Africa Limited
R
✓
✓
✓
IMG Pharmaceuticals Limited
A
✓
✓
Indian Ocean Financial Holdings Ltd
International Air Ambulance Limited
International Hospital Kampala Limited
International Medical Centres Limited
R R R R
✓ ✓ ✓
✓ ✓ ✓ ✓
✓ ✓ ✓ ✓
International Medical Group Limited
✓
Investment Professionals Ltd
AD
IPRO Fund Management Ltd

A
A
IPRO Funds Ltd
R
R
A
La Vallee de Ferney Co Ltd

✓
Laguna Clothing (Mauritius) Ltd

Laguna Clothing LLP
A
✓ R ✓
Laguna Madagascar SA
✓
✓
Le Café du Volcan Ltée

Loisirs des Iles Ltd
Long Beach IHS Ltd( In the process of being wound up)
R R R
Long Beach Resort Ltd

Mauritius International Trust Company Ltd
MITCO Business Solutions Ltd
MITCO Corporate Services Ltd
MITConsult Ltd
MITCO Côte D’ Ivoire ( Wound up on 21 April 2021)
MITCO Fiduciary DMCC
A
✓
✓
MITCO Group Ltd

MITCO International Holdings Ltd
A
MITCO Limited
MITCO Services Ltd
Operational Excellence Management and Leadership Ltd
✓
Reinette Facilities Management Ltd

Rising India Focus Fund Limited
Riviere Champagne Ltd
R R
R R
A A
Rockwood Textiles Ltd

✓
Société Bonneterie Malagasy - SOBOMA

Societe Civile Immobilière des Mascareignes
Société Textile d’Andraharo SA - TEXARO
✓
✓
✓
✓
✓
Solea Vacances SA
SRL FS, Ltd
SRL Kanuhura Ltd
SRL Maldives Ltd
SRL Management Ltd
✓
SRL Marketing Ltd

SRL Property Ltd
✓
R R R R R ✓
SRL Touessrok Hotel Ltd

✓ ✓
SRL Touessrok Residences & Villas Ltd

Sun Centralised Services Ltd (In process of being wound up)
Sun Hotel & Resorts GMBH
Sun Hotel Holdings Ltd
Sun Hotel Investment Ltd (Wound up 25 November 2020)
Sun International Management Ltd
Sun Leisure Hotels Ltd
Sun Leisure Investments Ltd
✓
✓
✓
✓
R*
Sun Limited
Sun Logistics Ltd
Sun Real Estates Ltd (Wound up on 05 June 2020)
R R R R R R R ✓ R ✓ R
Sun Resorts CSR Fund Ltd (in process of being wound up)
Sun Resorts France Sarl
Sun Resorts Hotel Management Ltd
Sun Resorts International Ltd
Sun Resorts (Seychelles ) Ltd (Wound up on 14 September 2020)
Sun Styled Boutiques Ltd
Sun Supoort Ltd
Sun Training Institute Ltd
Supply Chain Experts Ltd
R R ✓ R R R R ✓
TBLIMG Ltd
A
A
The Spirit of St Louis Global Equity Fund Ltd

✓
Tinka International Ltd

✓
TKL International Ltd

A
TKL Knits (India) Private Limited

R
R
R
R
R R R
Tropic Knits Ltd

R
✓
✓ ✓
Tropic Mad SA
Washright Services Ltd
333
Wolmar Sun Hotels Ltd

R R R
World Leisure Holidays (Pty) Ltd

334
(Francoise)
LEE Patrick
HAREL Didier
MONTI Bruno
LEROY Sophie
JOOMYE Azad
MAYER Harold
KOCH Philippe
KUMAR Rajesh
MONTI Manuel
KHULLAR Amit
GUJJALU Rajiv
GHOSE Sarbajit
FOK WAH Kevin
KOA WING Jane
LAGUETTE Tony
HUGNIN Thierry
LAGESSE Thierry
JOELISOA Liliane
HENRY Stéphane
LECLEZIO Arnaud
EYNAUD Francois
MAYER J.R Michel

LOWICK Jonathan
HOVENIER Robert
LEECH Paul Ernest

HOAREAU Daniella
GAVE Louis Vincent
MOOTOO Maryeven
KHADAROO Saleem
GERMAIN Stephanie
FONTANILLE Arnaud
GUIMBEAU M.A. Louis
KISTOO Ravindranath
LI KWONG WING Kate

GUNGADIN SAMINDRA
MCILRAITH CATHERINE
GANGWAR Krishna Kant
Girard Laurent Christian
LAGESSE Patrice Jérôme
MAKOOND Deonanan (Raj)

JULIE Bernardette Suzanne
JEENARAIN Rameswarsingh
KHUSHIRAM Khushhal Chand
MOOSUN Mohammad Reshad

HIRIDJEE Hassanein Shahreza
LONBORG-NIELSEN Annabelle
KISSOONDARY Yougendranath
KEENOO-SEEGOOLAM Poonam

IP WAN SHEK Pit-Lan Kan Youne
HERY MANANTENANSOA Micheline
A
Ajax Sweaters Ltd
Ambre Resort Ltd
✓ ✓
Anahita Hotel Ltd
R
✓
✓
BNI Madagascar SA
✓
C-Care North Ltd
R
R
CDL Knits Ltd
R ✓
✓
✓
✓
✓
CIEL Healthcare Ltd
✓
A
Cieltex SA Pty Ltd
✓
✓
CIELTextile Ltd
A
✓
R
✓
CTL Retail Ltd

Ebene Skies Ltd
A ✓
✓ Falaise Rouge Estate Ltd
✓
Ferney Ltd
Ferney Agri Hub Ltd
A
Ferney Bubbles Ltd

A
A
✓
R
A A
A A
A
R
✓

A
✓
✓
✓
✓

R

✓ ✓ ✓ ✓
✓ ✓ ✓ ✓
✓
✓

✓
✓ ✓
IPRO Funds Ltd
R
✓
✓
✓
R
✓ ✓
Laguna Clothing LLP
✓
✓
A
A
✓ ✓ ✓

R

R

A A ✓ A
A A A
A A A A
MITConsult Ltd
R

✓
✓
MITCO Group Ltd

A
A A

MITCO Limited
R R R R
A
R ✓ ✓ ✓
MITCO Services Ltd

✓
✓

R

✓

A

✓
Solea Vacances SA
SRL FS, Ltd
SRL Kanuhura Ltd
SRL Maldives Ltd
✓ ✓
✓ ✓
SRL Management Ltd

ADAD
SRL Marketing Ltd

A
A
SRL Property Ltd

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

A

A

✓
R*
Sun Limited
Sun Logistics Ltd
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓

Sun Supoort Ltd
A

✓ ✓ ✓ ✓

TBLIMG Ltd
A

R

R R
Tropic Knits Ltd

Tropic Mad SA
335

✓
✓ ✓ ✓

Sathisha
REY Alain
336
VIJ Ashwini
TAJOO Ayaz
REYES Carol
RICHÉ Olivier
RAZE Mathieu
Tropic Mad SA
VIDAL Jérôme
ROSTAND Tom
TERRIEN Denis
MOREAU Denis
SLAMA Youssef
WALTER Pascal
PASCAL Sylvain
TAKUN SADECK
PAVEY GEORGE
VAQUIER Pierre
PATEL Maneesh
THOMAS Michel
SOLOMON Brent
PERRIER Charles
RIVET Jean-Marc
MUNISAMY Neera
RUNGHEN Satuda
SAUZIER Christine
SIVARAMEN Samila
MORIARTY Emmett
SAVOYE Jean-Louis
NOWJEE Nitish Rao
YEE SAK CHAN Jane

THEVENAU Bertrand
RIVALLAND Bertrand
PERDIGON Véronique
SHIH Kristin Chienlun

MUHIEDDINE Hassane
VIVES Marc-Emmanuel
RAMLAGUN Neelmanee
VEERASAMY Naderasen
VISWESWARAN Ramesh
MUBEEZI Charity Melody
SANDHU Sukhmeet Singh
WONG YUN SHING Tommy

RAVELOARIVONY Vonifanja
ONY Sandrine Duglat Claire
SHIW MAHARAJ Lockmanya

RABESISOA Haingo Fanapera
TEEROOVENGADUM Kevindra
SUNDARAM Ramasubramanian
R
A
✓
✓
Ajax Sweaters Ltd
Ambre Resort Ltd
✓ ✓
Anahita Hotel Ltd
A
A
A
R
A
A
A A
✓
R
A
✓
✓
✓ ✓ ✓
✓
✓
✓
✓
✓
✓
BNI Madagascar SA
✓
A
✓
✓
✓
✓ ✓
C-Care North Ltd
A
✓
CDL Knits Ltd
R
R
✓
AD
R R
✓
R
✓
✓
CIEL Healthcare Ltd
AD
AD
A
A
✓
Cieltex SA Pty Ltd
✓
✓
✓
CIELTextile Ltd
A
✓
R
A
✓
✓
CTL Retail Ltd
Ebene Skies Ltd
✓
R
Falaise Rouge Estate Ltd
✓
✓
Ferney Ltd
Ferney Agri Hub Ltd
Ferney Bubbles Ltd
A A A
R
A
A
✓
✓
R
✓
✓ A ✓ ✓ ✓
✓
✓ A ✓ ✓ ✓
✓
✓
R
A
R
✓

R R
A A A
✓
✓

AD
✓ ✓
✓
✓
IPRO Funds Ltd

✓

A
Laguna Clothing LLP
✓
✓
✓
✓ ✓ ✓
R
MITConsult Ltd
A

R
✓
✓
MITCO Group Ltd

MITCO Limited
MITCO Services Ltd
A A

✓
✓

✓ ✓ ✓
✓

Solea Vacances SA
SRL FS, Ltd
SRL Kanuhura Ltd
SRL Maldives Ltd
SRL Management Ltd
SRL Marketing Ltd
✓ ✓ ✓ ✓ ✓ ✓ ✓
SRL Property Ltd

✓
✓
✓
Sun Limited
Sun Logistics Ltd
R
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Sun Supoort Ltd
✓

✓ ✓ ✓ ✓

✓
TBLIMG Ltd
A

R
R ✓ R
✓ ✓ ✓ ✓
Tropic Knits Ltd

✓ ✓ A ✓
✓
✓ ✓ ✓ A ✓
Tropic Mad SA
337

✓ ✓ ✓

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INTEGRATED REPORT

The annual meeting of the shareholders (“the Meeting”) will be held on

We thank you in advance for your collaboration.

A Note on the ‘Digital First’ Report

Integrated Reporting Principles

Reporting Scope and Process

6 10 +30 MUR 8.6 BN 109

Key Figures Committed to Long-Term

MUR 17.9 BN MUR 617 M

MUR 2.7 BN MUR 8.85

MUR 446 M MUR 84 BN

A Unique Portfolio of Brands

and decisive cost Performance

Interview with our CEO

Interview with our CEO

Next, our focus is on the digitalisation journey

Manufactured Social & Relationship

Optimise assets and  ong term financing secured for CIEL

Drive operational  PEX KPIs implemented within all clusters

Consolidate our  obust momentum in CIEL Textile’s international operations in

CIEL Business Model

Human Capital Human Capital

Long-term strategic partnerships bringing capital and expertise

Employees by Country (Main Operations) 2021:

Women at Management Level

2020 2021 Variance

Hotels & Resorts 28.8% 26.7% -2.1%

refers to members of boards of directors, including independent directors.

Gender Balance (Con’d)

FY 2021 FY 2021 Properties

0% 20% 40% 60% 80% 100% 120%

Learning & Development

CIEL Financial Overview

Group Textile Finance Healthcare Properties Hotels &

Where We Generate Our Revenue

Mauritius Asia Africa

CIEL Financial Overview

Net Asset Value per Share (Company) 9.28 6.00 55%

Capital Employed 36,342 35,692 2%

Dividend per share (MUR) 0.05 0.08 (38%)

Market Capitalisation (MUR 'bn) 8,738 5,869 49%

CIEL Financial Overview

Profit After Tax Free Cash Flow

2020 2021 2020 2021

CIEL Financial Overview

30 June 2020 30 June 2021

39.4% 41.2% 39.0%

13,242 15,229 15,498 15,522 17,078 14,157

MUR 10,444 M MUR 1,321 M MUR 627 M

Rising labour costs

(Knits, Knitwear, Woven)

 radual opening of UK and USA markets

 uccessful rebranding and leveraging

 ppointment of key leaders to drive

 onsolidated operations and leadership

Ongoing journey towards operational

MUR 3,782 M MUR 1,349 M MUR 608 M

Portfolio Management &

CIEL Finance CIEL Finance MITCO MITCO

Optimise assets and ong term financing secured for CIEL

Drive operational PEX KPIs implemented within all clusters

Consolidate our obust momentum in CIEL Textile’s international operations in

Rising labour costs

radual opening of UK and USA markets

uccessful rebranding and leveraging

ppointment of key leaders to drive

onsolidated operations and leadership

Ongoing journey towards operational

we operate Credit default risk

New market entrants ack of qualified clinical

erney restaurant and lodge impacted

aunch of Phase 1 of Ferney Agri-Hub

inancial collapse of major

ubstantial cost reductions made to

auritius Investment Corporation’s

Rebranding and restructuring of the

Complete the development of the

Sale of non-strategic and abandoned

Continue developing the coastal

Proactive management of pervasive

I mplementation of a holistic drainage Click on image to access video