confidence - Investing In Africa

Directors’ Report to the Shareholdershas already put in place capabilities/systems geared for Basel II Accordcompliance. Further, in accordance with the Central Bank guideline which cameinto effect on April 01, 2005, capital has been allocated for Operational Risk incompliance with the regulatory requirements and the capital adequacy ratio,accordingly, was 21.78% as at June 30, 2005.The Bank embarked on an upliftment programme of its strategic Service Unitsto project a modern image of the Bank. The Bank renovated its CurepipeService Unit in 2004 and Rose Hill Service Unit in 2005. Renovation works atother selected Service Units are in progress.CORPORATE GOVERNANCE PRACTICESThe Bank embraced best corporate governance practices in the mid 1990’s,well before the promulgation of the Code and regulatory Guidelines in 2004.The Board leads by example. A full assessment of the effectiveness of theBoard and Board committees as well as evaluation of the directors wasundertaken at the end of 2004 to elicit feedback from board members witha view to enhancing performance of the board and its committees. The Boardhas a formal written charter which is updated at least annually to reflectlegislative and local/international codes of conduct and best practicerequirements. During the year, the Group implemented a code of businessethics for directors and employees.The Bank has complied with the Mauritian Code of Corporate Governance, exceptfor disclosure of remuneration of directors on an individual basis. The Boardbelieves that it is not desirable in the local context to do so and shall comply at anappropriate time. The Committee/Board will review this on an annual basis.The Group’s Internal Audit plays an important role in ensuring that the systemof internal controls, policies and procedures are followed and complied with.17The Board reaffirms its commitment to the highest level of integrity andcompliance with good corporate governance.CORPORATE CITIZENSHIPThe Bank earmarks an annual budget for sponsorship of social, cultural, sportsand educational events/activities on an on-going basis, besides assistance forthe welfare of the community in need. The Bank donated Rs1.0M to theTsunami Solidarity Relief Fund during the year for the benefit of the victims ofthe Tsunami.The shareholders at the last Annual Meeting approved the setting up of theSBM Education Trust, SBM Sport Trust and the SBM Staff Children Education Trust.