AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 st March 2014 The audited Financial Statements for the year ended 31 March 2014 have been prepared in accordance with Bank of Mauritius Guideline on Public Disclosure of Information. The financial report contains forward looking statements and risks assessments based on the Bank s view of the economic situation and may not necessarily materialise. Users of information should therefore not place undue reliance on these statements. RESULTS Total deposits stood at 660.588 million as on 31st March 2014 as against 910.699 million as on 31st March 2013. Net loans and advances was 698.658 million as on 31st March 2014 as compared to 768.773 million as on 31st March 2013. Profit after tax for the financial year ended 31st March 2014 has increased significantly by 50.06%, on a year-on-year basis, to stand at 14.424 million. EPS has improved by 6.19, on a year-on-year basis, to reach a level of 18.54 per share for 778,035 shares in issue for the period ended 31st March 2014. PROSPECTS Notwithstanding, the slowdown in domestic growth and the rising domestic vulnerabilities and uncertainties, the Bank continues to sustain a resilient growth. Looking ahead, the growth outlook for the Bank for the financial year 2014-15 would be dependent on the pace of global and domestic economic recovery and the impact linked to vulnerabilities on account of US Federal Reserve tapering by mid-2014. SBI (Mauritius) Ltd is hopeful to deliver a sustainable business growth by widening and diversifying its market while upholding excellence in the quality of service offered to customers. Copies of the Interim Financial Statements can be obtained free of charge upon request at the Head Office of the company, SBI (Mauritius) Ltd, SBI Tower Mindspace,45 Ebene Cybercity, and can be viewed on our website: www.sbimauritius.com The statement of direct and indirect interests of officers of the Company in the capital of the Company may also be obtained free of charge upon request at the registered office of the Bank. By order of the Board A.B Mosaheb Company Secretary Date: 09 May 2014 This communiqué is issued pursuant to Securities Act 2005. The Board of s of SBI (Mauritius) Ltd accepts full responsibility for the accuracy of the information contained in this communiqué.
INDEPENDENT AUDITORS REPORT TO THE MEMBERS This report is made solely to the members of SBI (Mauritius) Ltd (the Bank ), as a body, in accordance with Section 205 of the Companies Act 2001. Our audit work has been undertaken so that we might state to the Bank s members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Bank and the Bank s members as a body, for our audit work, for this report, or for the opinions we have formed. Report on the Financial Statements We have audited the financial statements of SBI (Mauritius) Ltd on pages 22 to 69 which comprise the statement of financial position as at March 31, 2014, statement of profit and loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. s Responsibility for the Financial Statements The directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and in compliance with the requirements of the Companies Act 2001 and Banking Act 2004, and for such internal control as the directors determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Bank s preparation and fair presentation of the financial statements 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 Bank s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements on pages 22 to 69 give a true and fair view of the financial position of the Bank as at March 31, 2014, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and comply with the Companies Act 2001. Report on Other Legal and Regulatory Requirements Companies Act 2001 We have no relationship with, or interests in, the Bank, other than in our capacity as auditors, business advisers and dealings in the ordinary course of business. We have obtained all information and explanations we have required. In our opinion, proper accounting records have been kept by the Bank as far as it appears from our examination of those records. Banking Act 2004 In our opinion, the financial statements have been prepared on a basis consistent with that of the preceding year and are complete, fair and properly drawn up and comply with the Banking Act 2004 and the regulations and guidelines of the Bank of Mauritius. The explanations or information called for or given to us by the officers or agents of the Bank were satisfactory. The Financial Reporting Act 2004 The directors are responsible for preparing the Corporate Governance Report. Our responsibility is to report the extent of compliance with the Code of Corporate Governance as disclosed in the annual report and on whether the disclosure is consistent with the requirements of the Code. In our opinion, the disclosure in the annual report is consistent with the requirements of the code. BDO & Co Chartered Accountants 09th May 2014 Port Louis, Mauritius Ameenah Ramdin, FCCA, ACA Licensed by FRC
Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 March 2014 2014 2013 2012 Interest income 43,113,365 46,482,193 53,881,104 Interest expense (22,248,575) (28,029,408) (28,977,744) Net interest income 20,864,790 18,452,785 24,903,360 Net fee and commission Income 2,777,527 2,856,654 2,840,653 Net trading income 1,429,028 1,627,188 2,025,125 Other operating income 484,955 173,772 910,790 1,913,983 1,800,960 2,935,915 Operating income 25,556,300 23,110,399 30,679,928 Net impairment loss on financial assets (2,606,505) (4,812,811) (7,343,467) Personnel expenses (3,867,731) (3,612,322) (3,620,725) Depreciation (709,065) (778,366) (949,981) Other expenses (2,725,284) (3,012,990) (2,880,791) Profit before income tax 15,647,715 10,893,910 15,884,964 Income tax expense (1,223,925) (1,281,470) (1,155,947) Profit for the year 14,423,790 9,612,440 14,729,017 Other Comprehensive Income Items that will not be reclassified to profit or loss Remeasurement of defined benefit obligations (403,609) (482,438) (235,351) Deferred tax on remeasurement of defined benefit obligations 45,506 72,366 35,303 Items that may be classified subsequently to profit or loss Fair value gains on investment securities (83,852) 18,594 - Other Comprehensive Income for the year (441,955) (391,478) (200,048) Total comprehensive income attributable to equity holders of the company 13,981,835 9,220,962 14,528,969 Earnings per share 18.54 12.35 18.93 Approved and authorised for issue by the Board of s on 09th May 2014. J.S.Hiremath Managing & CEO M.Cheeroo G.Gopee
ASSETS Statement of Financial Position As at 31 March 2014 2014 2013 2012 Cash and cash equivalents 53,794,971 215,956,075 66,844,558 Loans and advances to banks 42,791,638 79,552,160 6,103,233 Loans and advances to customers 655,866,657 689,220,782 726,331,869 Investment securities 193,742,308 196,253,505 126,897,739 Property, plant and equipment 8,688,846 9,156,477 9,744,320 Retirement benefit obligation - - 151,643 Deferred tax assets 765,692 716,342 953,401 Other assets 25,435,641 26,670,284 38,133,655 Total assets 981,085,753 1,217,525,625 975,160,418 LIABILITIES Deposits from customers 660,588,019 910,699,222 649,747,657 Other borrowed funds 130,807,894 123,970,350 146,434,925 Current tax liabilities 768,698 160,739 813,222 Retirement benefit obligation 837,437 353,646 - Other liabilities 13,736,639 18,086,262 19,239,994 Total liabilities 806,738,687 1,053,270,219 816,235,798 Shareholders' Equity Stated Capital 48,627,188 48,627,188 48,627,188 Share premium 54,078,062 54,078,062 54,078,062 Retained earnings 55,907,348 47,537,302 43,247,747 Other s 17,142,080 15,062,363 13,611,060 Actuarial losses (1,407,612) (1,049,509) (639,437) Total equity 174,347,066 164,255,406 158,924,620 Total equity and liabilities 981,085,753 1,217,525,625 975,160,418 Approved and authorised for issue by the Board of s on 09th May 2014. J.S.Hiremath Managing & CEO M.Cheeroo G.Gopee
Statement of changes in equity for the year ended 31 March 2014 Stated capital Share premium Statutory General banking Other Actuarial losses Retained earnings Total Balance at 1 April 2011 - As previously stated 48,627,188 54,078,062 10,690,282 603,175 108,250-34,618,258 148,725,215 - Effect of adopting IAS 19 (Revised) - - - - - (439,389) - (439,389) - 48,627,188 54,078,062 10,690,282 603,175 108,250 (439,389) 34,618,258 148,285,826 Profit for the year - - - - - - 14,729,017 14,729,017 Other Comprehensive Income for the year - - - - - (200,048) - (200,048) Transfer to Statutory s - - 2,209,353 - - - (2,209,353) - Dividend paid - - - - - - (3,890,175) (3,890,175) Balance at 31 March 2012 48,627,188 54,078,062 12,899,635 603,175 108,250 (639,437) 43,247,747 158,924,620 Balance at 1 April 2012 - As previously stated 48,627,188 54,078,062 12,899,635 603,175 108,250-43,247,747 159,564,057 - Effect of adopting IAS 19 (Revised) - - - - - (639,437) - (639,437) - 48,627,188 54,078,062 12,899,635 603,175 108,250 (639,437) 43,247,747 158,924,620 Profit for the year - - - - - - 9,612,439 9,612,439 Other Comprehensive Income for the year - - - - 18,594 (410,072) - (391,478) Transfer to Statutory s - - 1,432,709 - - - (1,432,709) - Dividend paid - - - - - - (3,890,175) (3,890,175) Balance at 31 March 2013 48,627,188 54,078,062 14,332,344 603,175 126,844 (1,049,509) 47,537,302 164,255,406 Balance at 1 April 2013 - As previously stated 48,627,188 54,078,062 14,332,344 603,175 126,844-47,476,255 165,243,868 - Effect of adopting IAS 19 (Revised) - - - - - (1,049,509) 61,047 (988,462) - 48,627,188 54,078,062 14,332,344 603,175 126,844 (1,049,509) 47,537,302 164,255,406 Profit for the year - - - - - - 14,423,790 14,423,790 Other Comprehensive Income for the year - - - - (83,852) (358,103) - (441,955) Transfer to Statutory s - - 2,163,569 - - - (2,163,569) - Dividend paid - - - - - - (3,890,175) (3,890,175) Balance at 31 March 2014 48,627,188 54,078,062 16,495,913 603,175 42,992 (1,407,612) 55,907,348 174,347,066
Statement of Cash Flows for the year ended 31 March 2014 2014 2013 2012 Cash flows from operating activities Profit for the year 14,423,790 9,612,440 14,729,017 Adjustments for: Depreciation 709,065 778,366 949,981 Exchange rate difference 171,206 (139,870) (267,695) (Profit) / loss on disposal of assets (18,695) (9,411) 2,124 Profit on disposal of non banking asset (292,054) - - Provision for retirement benefit obligation 77,332 23,948 (7,861) Impairment on financial assets 2,606,505 4,812,811 7,343,467 Net interest income (20,864,790) (18,452,785) (24,903,360) Income tax expense 1,223,925 1,281,470 1,155,947 (1,963,716) (2,093,031) (998,380) Changes in operating assets and liabilities Decrease/(increase) in loans and advances to banks 36,749,429 (73,450,215) (3,372,834) Decrease in loans and advances to customers 30,535,573 31,603,204 58,743,648 Decrease in other assets 774,323 10,878,886 6,660,904 (Decrease)/increase in deposits from customers (250,111,203) 260,951,565 (288,306,802) Increase/(decrease) in other liabilities 1,486,535 (1,366,441) 474,171 Interest received 43,705,679 46,961,375 56,600,977 Interest paid (28,084,733) (27,816,699) (30,151,591) Income tax paid (700,294) (1,624,529) (1,486,029) Net cash (used in)/generated from operating activities (167,608,407) 244,044,115 (201,835,936) Cash flows from investing activities Decrease/(increase)in investment securities 2,511,673 (68,404,537) 34,231,665 Purchase of property,plant and equipment (242,239) (190,933) (1,343,822) Proceeds from sale of property, plant and equipment 19,500 17,622 2,840 Proceeds from sale of non banking asset 211,000 - - Net cash generated from/(used in) investing activities 2,499,934 (68,577,848) 32,890,683 Cash flows from financing activities Other borrowed funds 6,837,544 (22,464,575) 31,300,700 Dividend paid (3,890,175) (3,890,175) (3,890,175) Net cash generated from/(used in) financing activities 2,947,369 (26,354,750) 27,410,525 Net (decrease )/ increase in cash and cash equivalents (162,161,104) 149,111,517 (141,534,728) Cash and cash equivalents at 01 April 2013 215,956,075 66,844,558 208,379,286 Cash and cash equivalents at 31 March 2014 53,794,971 215,956,075 66,844,558