CFSL Integrated Report 2025

171

Introduction

Group Overview

Leadership

Strategy & Performance

Explanatory Notes 30 September 2025

4.

FINANCIAL RISK MANAGEMENT (CONTINUED) 4.1 Financial risk factors (continued) (e) Liquidity risk (continued)

Up to 3 months

3 - 6 months

6 - 12 months

1 to 5 years

Over 5 years

COMPANY

Total

MUR m MUR m MUR m MUR m MUR m MUR m

30 September 2024

Assets Cash and bank balances

469.3 345.9

– –

–

–

– –

469.3 727.6

161.7

220.0

Deposits with banks

Net investment in leases and other credit agreements

1,861.2 2,053.0

1,614.9 1,239.6

2,889.0 2,129.6

8,153.7 8,373.0

504.4

15,023.2 13,795.2

–

Loans and advances Investment securities

–

– –

– –

119.8

0.8

120.6 522.3

522.3

–

–

Other assets* Total assets Liabilities Bank overdrafts Other liabilities Lease liabilities Total liabilities

5,251.7

2,854.5

5,180.3

16,866.5

505.2

30,658.2

13.1

–

–

–

–

13.1

4,203.1 1,010.3

1,616.4

2,685.3

8,273.1

280.8

17,058.7 1,359.3

Other borrowed funds

85.8 13.0

13.0 26.0

250.2 130.3

–

13.0

0.3

182.6

5,239.5

1,715.2 1,139.3

2,724.3 2,456.0

8,653.6 8,212.9

281.1 224.1

18,613.7 12,044.5

Net liquidity surplus

12.2

The Company manages the net negative liquidity gaps through its undrawn bank facilities. * Other assets exclude prepayments

4.2 Capital risk management The primary objective of the Group’s and the Company’s capital management is to maximise shareholders’ value. The Company aims at distributing an adequate dividend whilst ensuring that sufficient resources are maintained to continue as a going concern and for expansion. The Group and the Company manage their capital structure and make adjustments in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The ratio of net debt to equity is used to monitor capital and the ratio is kept at a reasonable level. For the purpose of capital management, net debt includes other borrowed funds net of cash and bank balances. Equity consists of stated capital, retained earnings and other reserves. The Group monitors its Capital Adequacy Ratio (CAR) on a regular basis and uses the latter as a key metric to assess its robustness to sustain economic shocks in the period under review, despite this significant increase in the impairment charges, the Capital Adequacy Ratio remained at a very reasonable level. The Company, being licenced by the regulatory authority as a payment service provider is exposed to externally imposed capital requirement. The Company is required to maintain at all times a minimum capital requirement of MUR5m after deducting its accumulated losses. As at reporting date, the Company is in adherence to the externally imposed capital requirement. GROUP COMPANY

Sep-25 MUR m

Sep-25 MUR m

Sep-24 MUR m 16,210.9

Sep-24 MUR m 15,883.6

18,438.5

17,986.1

Debt (note 13, 24 and 28) Less: Cash balances (note 13)

(943.6)

(888.3)

(514.3)

(469.3)

17,494.9 7,154.2

17,097.8 6,868.4

15,696.6 6,554.4

15,414.3 6,280.9

Equity

2.4

2.5

Net debt/equity ratio 2.5 The net debt to equity ratio has remained the same at 2.4 times from 2024 to 2025 for the Group and at 2.5 times from 2024 to 2025 for the Company. 2.4