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    Country by Country Financial Reporting and Auditing Framework

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    Mauritius – Crowe Horwath (Mur) Co. (Prepared June 2015)

     

    Preparation of and Filing of Financial Summaries and Audited Financial Statements

     

    Companies in Mauritius are classified between Domestic Entities and Global Business Entities. Their reporting requirements are listed below:

     

    A.   Domestic Entities

     

    Domestic entities are regulated by the Registrar of Companies of Mauritius (ROC). They can carry out their business activities both within and outside Mauritius.

     

    (i)   Small private companies with Annual Turnover not exceeding Mauritius Rupee (MUR) 50 Million (equivalent to USD 1,500,000) are required to submit to ROC financial summaries duly approved by directors. Audit is not compulsory for such type of entities. The financial summaries should be filed within 6 months of the financial year end close.

     

    (ii) Private and Public companies with an Annual Turnover of MUR 50 Million and above are required to submit to ROC audited financial statements duly approved by directors. Audit is compulsorily required to be carried out for such type of entities. The audited financial statements should be filed to ROC within 28 days of the Annual Meeting of shareholders which should be within 6 months of the financial year end close.

     

    (iii) Companies listed on the Stock Exchange of Mauritius (SEM) are required to file with SEM audited financial statements within 3 months of the financial year end close

     

    B.   Global Business Entities

     

    Global Business entities are regulated by the Financial Services Commission of Mauritius (FSC). The licensing conditions issued by FSC to such entities permits dealing of the entities with local residents only upon receipt of approval from FSC. All the activities of such entities are that of an international nature. They are classified as Category 1 Global Business License entities (GBL 1) or Category 2 Global Business License entities (GBL 2).

     

    (i)   Companies holding a Category 1 Global Business License (GBL 1) are required to submit to the Mauritius Financial Services Commission audited financial statements duly approved by directors. Audit is compulsorily required to be carried out for such type of entities. The audited financial statements should be filed to FSC within 6 months of the financial year end close. Those GBLs holding licenses under the Mauritius Securities Act 2005 have exceptions.

     

    A GBC 1 may be structured as a PCC, which is a special legal structure made up of cellular and non - cellular assets. It provides legal segregation of assets attributable to each cell of the company whether owned by individuals or the body corporate. The PCC offers a wide range of applications mostly for insurance (general, long term, reinsurance, captive) and collective investment schemes and also for any other activities approved by FSC. A protected cell company (PCC), satisfying the conditions of a GBL 1 and regulated by the Protected Cell Company Act 1999. The PCC, being a single legal entity can divide its assets between different cells within the Company. When sub-divided, the assets of each cell are deemed to be entirely separate from each other and the creditors of a cell only have recourse against that particular cell. The Mauritius legislation in respect of PCCs is currently designed for the investment fund and insurance industries for the facilitation of so called "Umbrella Funds" and "Rent a Captive" operations. For insurance entities the FSC requires the filing of an audited financial statements, certificate of liquidity ratio, certificate of margin of solvency, actuarial valuation of adequacy of premium and loss reserves in case of long term business.

     

    (ii) Companies holding a Category 2 Global Business License (GBL 2) are required to submit to FSC financial summaries duly approved by directors. Audit is not compulsory for such type of entities. The financial summaries should be filed within 6 months of the financial year end close.

     

     

     

     

     

     

    C.   Entities operating in the Securities sector and licensed under the Mauritius Securities Act 2005

     

    A CIS (Collective Investment Scheme) Manager must file with FSC interim financial statements prepared in accordance with IFRS and such other standards as may be issued under the Financial Reporting Act 2004, as soon as possible, but not later than 45 days after the closing date of each interim period specified in FSC Rules. The interim financial statements need not be audited.

     

    The CIS Manager shall, as soon as possible, but not later than 90 days of its reporting date, file with FSC and make public an annual report which shall include audited financial statements prepared in accordance with IFRS and audited in accordance with the International Standards on Auditing, and such other standards as may be issued under the Financial Reporting Act 2004, by an Audit firm approved by FSC.

     

    A limited partnership  may be registered with the FSC under the Financial Services Act 2007 as a GBL 1. The Limited Partnerships Act 2011 (the "Act") came into force on 15 December 2011. Mauritius has been a popular jurisdiction for collective investment schemes and for investment holding companies investing in the emerging African and Asian markets. Limited partnerships now offer foreign investors another vehicle which may provide additional flexibility in structuring collective investment Schemes and investment holding vehicles. A limited partnership may also be set up as a collective investment scheme under the Securities Act 2005 and the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008. It is required to submit audited financial statements within 6 months of the financial year end close.

     

    Exemption for non-consolidation

     

    The Mauritius Companies Act 2001 allows companies holding a Category 1 Global Business Licence and which are a wholly or virtually wholly owned subsidiary of any company not to present consolidated financial statements.

     

    Audit appointment, rotation and joint audits

     

    Audit partner rotation is not mandatory within firms and the issue is under scrutiny by the Mauritius Financial Reporting Council. We comply with the audit partner rotation requirements of the code of the International Ethics Standards Board for Accountants (IESBA). Firms do follow the quality control policies and procedures with regard to rotation of partners on a 7 years rotational basis.

    Audit appointments in Mauritius are normally not for a fixed period. An auditor can normally be appointed/removed at any time.  Mauritius does not have any rules relating to mandatory rotation of audit firms but there are guidelines within the ethical standards regarding partner rotation. 

     

    Auditing Standards

     

    We are required to undertake audit and express an opinion on the financial statements in accordance with the Mauritius Companies Act 2001 which requires audit to be conducted under the International Standard on Auditing issued by the International Federation of Accountants (IFAC).

     

    Ethical Framework

     

    We follow the IFAC Code of Ethics (IESBA).

     


    Audit Regulation

     

    We are subject to the following external and internal monitoring processes with regard to our audit practice:P

     

    External monitoring

    The firm is subject to external review by the Audit Inspection Unit of the Mauritius Financial Reporting Council for public interest entities audited by the firm. In November 2014, the financial reporting council had a review at our firm and their report has been positive. We have always followed the audit guidance of CHIAT and also the standards issued by IFAC.

     

    Internal Monitoring

    Our internal monitoring is based on the essential elements of quality assurance system which are in line with the guidelines issued by the International Federation of Accountants (IFAC) on quality control (ISQC 1).  We have developed forms and checklists that are being adhered to by the staffs of our organisation who are fully aware for the need of the quality control functions in our profession.

     

    Our approach are risk-based and we have competent staffs to follow on those internal forms and checklists during the engagement process. In addition as a member of Crowe Horwath International our firm is subject to regular network peer reviews (QAR) and also reviews by the Financial reporting Council of Mauritius.

     

    As a basic principle  and in view the size of our firm we have internal quality review arranged on an adhoc basis to ensure that all staffs fully understand and adheres to the quality control policies and procedures we have in place.

     

    Transparency Reporting

     

    There is no such requirement in Mauritius. However, we have adopted.


     


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    David Chitty - Audit
    London, United Kingdom
    +44 20.7842.7292


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