ASA Internaonal Group plc
Annual Report & Accounts 2021
Gradual recovery
of operaons
ASA Internaonal Group plc Annual Report & Accounts 2021
We have a strong
commitment to
nancial inclusion
and socioeconomic
progress.
Strategic Report
01 Highlights
02 Company overview
04 Chairman’s statement
06 Chief Execuve Ocer’s review
08 Business model
10 Our strategy
12 Feature – client
14 Our investment case
16 ESG report
17 Non-nancial informaon statement
18 Socially responsible
22 Feature – colleagues
24 Our community programmes
26 Feature – community
28 Environmentally responsible
29 TCFD report
30 SECR
32 Secon 172 statement
34 Financial review
46 Country review
48 Key Performance Indicators
50 Risk management
52 Principal risks
Governance Report
57 Chairman’s introducon
58 Board of Directors
60 Management team
62 Board at a glance
64 Leadership of the Board
66 Governance framework
71 Audit and Risk Commiee report
78 Nominaon Commiee report
80 Remuneraon Commiee report
92 Independent Directors’ Commiee report
92 Disclosure Commiee report
93 Directors’ report
Financial Statements
98 General informaon
99 Independent auditor’s report
106 Consolidated statement of prot or loss and
other comprehensive income
107 Consolidated statement of nancial posion
108 Consolidated statement of changes in equity
109 Consolidated statement of cash ows
110 Notes to the consolidated nancial statements
164 Statutory statement of prot or loss and other
comprehensive income
165 Statutory statement of nancial posion
166 Statutory statement of changes in equity
167 Statutory statement of cash ows
168 Notes to the statutory nancial statements
Addional Informaon
171 Alternave performance measures
173 List of abbreviaons
Our vision
A society without poverty
Who we are
ASA Internaonal is one of the world’s largest
internaonal micronance instuons providing
small, socially responsible loans to low-income
entrepreneurs, most of whom are women,
across Asia and Africa.
ASA Internaonal is listed on the premium
segment of the London Stock Exchange.
For more informaon visit:
www.asa-internaonal.com
Our purpose
2
021
2
020
2
019
2.4m
2.4m
2.5m
2
021
2
020
2
019
2,044
1,965
1,895
2
021
2
020
2
019
USD 430.7m
USD 445.3m
USD 471.4m
2
021
2
020
2
019
USD 6.4m
USD -1.4m
USD 34.5m
2
021
2
020
2
019
USD 403.7m
USD 415.3m
USD 467.4m
2
021
2
020
2
019
5.2%
13.1%
1.5%
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
01
Highlights
2.4m
Clients
2,044
Branches
$430.7m
Gross Outstanding Loan Porolio (USD)
$6.4m
Net prot (USD)
$403.7m
Outstanding Loan Porolio (USD)
5.2%
PAR>30 days
Approval of Strategic Report
The Strategic Report for the year ended 31 December 2021, set
out on pages 1 to 56, was approved by the Board of Directors
on 29 April 2022.
By order of the Board,
Dirk Brouwer
Chief Execuve Ocer, ASA Internaonal Group plc
29 April 2022
• 



• 




• 


• 
of unrestricted cash and cash equivalents, with a funding pipeline

• 

38737_ASA_AR21_01_Frt_AW.indd 138737_ASA_AR21_01_Frt_AW.indd 1 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
02
Company overview



established commitment to improving

socioeconomic progress.
Our clients are engaged in services,
trading, manufacturing and
agricultural business acvies
Our clients





urban/semi-urban areas.




Read more on pages 19 and 32
Our colleagues






a responsible manner and prevent inadvertent over-borrowing of clients.



and credit risk.
Read more on pages 20 and 32
Our products and services



including small and small business loans. The average disbursement of the

has been fully repaid, clients are eligible to apply for a new loan, based on

There is a maximum increment and loan limit for each loan cycle, including
follow-on loans. These follow-on loans are, on average, 20% to 50%
larger than the previous loan. Where it is customary and allowed under
the current licence, a security deposit is taken.


that depend on the country, product and loan term.




accounts, payments and deposits, and other digital value-added services


13k
Employees
2.4m
Clients
13
Countries
38737_ASA_AR21_01_Frt_AW.indd 238737_ASA_AR21_01_Frt_AW.indd 2 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
03





Outstanding Loan Porolio (USD)





Branches





Clients
Corporate head oces:
Amsterdam, The Netherlands
Dhaka, Bangladesh
Registered head oce:


457,302
Clients
416,898
Clients
$94.2m
Outstanding Loan Porolio (USD)
$64.9m
Outstanding Loan Porolio (USD)
West Africa



Branches: 440



East Africa



Branches: 406





 
1,106,469
Clients
$182.3m
Outstanding Loan Porolio (USD)
South Asia



Branches: 778



400,021
Clients
$62.3m
Outstanding Loan Porolio (USD)
South East Asia


Philippines and Myanmar.
Branches: 420


Read more on page 36 

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ASA Internaonal Group plc
Annual Report and Accounts 2021
04
Moving ahead
with our long-
term growth
strategy
Chairman’s statement
In February 2021, the Board was deeply shocked by the death of


and all its employees, and was a wise and gracious colleague on
the Board. It is our task to build on his impressive legacy.
The external environment during 2021 remained very challenging


leading to lockdowns and consequent economic hardship for our



our business in India and are focusing intently on loan recovery.
Most of our other key markets showed steady recovery during the




In the second year of the pandemic, we had the



38737_ASA_AR21_01_Frt_AW.indd 438737_ASA_AR21_01_Frt_AW.indd 4 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
05







strengthen their businesses as smartphone usage becomes increasingly

securing banking or deposit-taking licences in key countries, in order to



footprint and climate-related risks; however, more work is required.



to support our clients and thus sustain and grow our business. At the
















Guy Dawson
Chairman, ASA Internaonal Group plc
29 April 2022
On 12 February 2021, ASA Internaonal’s co-founder
and President and the founder and President of ASA NGO
Bangladesh, Md Shaqual (‘Shaq’) Haque Choudhury,
passed away.



loss. They were colleagues of over 30 years and close friends









well-trained with an immense strength and capacity to deal
with the ongoing challenges.




inspiring leader and devoted mentor.”
Md Shaqual Haque Choudhury

Deeply missed. Forever in our thoughts.
38737_ASA_AR21_01_Frt_AW.indd 538737_ASA_AR21_01_Frt_AW.indd 5 28/04/2022 15:4628/04/2022 15:46
06
ASA Internaonal Group plc
Annual Report and Accounts 2021
Chief Execuve Ocer’s review
Strategic
progress while
supporng
clients to recover
Business review 2021








for their commitment, hard work and for always keeping their focus on

Financial performance







their businesses compared to 2020. ASA Nigeria and Pagasa Philippines











the deferred tax provision on future dividend payments by some of the



India, for which no deferred tax asset was recognised. This reduced net


a safe working environment for our
colleagues and worked with them and
other stakeholders to support clients
to ensure their sustainable recovery.
38737_ASA_AR21_01_Frt_AW.indd 638737_ASA_AR21_01_Frt_AW.indd 6 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
07






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

India
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



















Digital Financial Services



• 

designed for use by a client through their smartphone.
• 





• 


banking peers.
• 
DFS advisors, app and wireframe developers, a DFS development

• 










Compeve environment





Funding









Outlook







Dividend
The Board has decided not to declare a dividend for the year 2021



Dirk Brouwer
Chief Execuve Ocer
29 April 2022
38737_ASA_AR21_01_Frt_AW.indd 738737_ASA_AR21_01_Frt_AW.indd 7 28/04/2022 15:4628/04/2022 15:46
Branches are deeply
rooted in the community
Microcredit to female micro-entrepreneurs
Average loan disbursement per

Small
businesses
Enhanced
business acvity
Income-generang
purpose
Increased
household
spending/
saving
Social
empowerment/
well-being
Increased
household income
ASA Internaonal Group plc
Annual Report and Accounts 2021
08
Business model
Socially responsible
business model






38737_ASA_AR21_01_Frt_AW.indd 838737_ASA_AR21_01_Frt_AW.indd 8 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
09




income micro-entrepreneurs
through loan provision.
Achieving gender equality by
empowering predominantly
women with access to business
loans and providing gender




increasing self-employment

trading businesses that boost
the local economy.




thirteen countries.
Reducing inequality by
driving socioeconomic
progress in primarily

where clients live and work.

Stakeholders Impact in 2021
Clients and prospects
• Financial inclusion.
• 
• Socioeconomic progress.
• 
979.8m
Total loans disbursed
91%
SP14
5.5%
Client Economic Yield (‘CEY’)
96.2%
Female clients
Colleagues
• 
• Training and development.
13,033
Colleagues based in
Bangladesh, Asia & Africa
85%
Employee sasfacon
42,907
Hours training
Communies
• 
the community.
• 
0.4m
Community project spend
79
Branches added
Countries
• 
• Increased spending.
19.3m
Taxes
Contribuon to
economic development
of country through
clients’ increased income.
Regulators and industry bodies
• Sustainable lending
environment.
Through membership at industry bodies
and central banks, contribung to a sustainable
micronance environment.
Shareholders
• 

• 
Nil
Dividend
In light of the Company’s nancial
results, the Board has decided
not to pay a dividend for 2021.
The Company’s strategy and core operaons
contribute to the delivery of ve UN SDGs:
38737_ASA_AR21_01_Frt_AW.indd 938737_ASA_AR21_01_Frt_AW.indd 9 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
10
Our strategy
Sustainable growth




new client groups.

Add digital services,
integrated with branch model

through branch network
By increasing the number of clients per branch, increasing loan volumes per



• 
• 
• Increase the number of bank/deposit-taking licences.
• 
• 





client groups.
• 
• 
deposits.
• Introduce client app once successfully piloted.
• 

• 
AMBS, to ensure a smooth switch to the new comprehensive core banking
system for full deposit-taking in selected markets.
• 
security threats around the clock.

see pages 12 and 13
• Board approval of digital strategy.
• 

• Purchased licence for comprehensive core

the wider public, which also meets regulatory
requirements.
2021 progressStrategic pillars
• 1,165 clients per branch.
• 


• 

prior to approval for issuance of the

• 

• Due to the pandemic no commencement

• 
governance structure.
38737_ASA_AR21_01_Frt_AW.indd 1038737_ASA_AR21_01_Frt_AW.indd 10 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
11

74%
Client retenon


1.2m
New clients


79
New branches


$181
Average gross loan
per client


• 




• 

• New markets are being analysed in Africa.
• 

to propose and implement the climate-related strategic decisions
to drive improvement.
• 

• 
• 


• 
• 
surveys as well as central bank approval.
• 

• 


• 
• 
network.
• 

• 
at a sustainable rate.
• 


taking licences.
• 

• 
branch model.
• 

• 
markets.
• 
core banking system.
• 
2022 priories
Longer-term focus
38737_ASA_AR21_01_Frt_AW.indd 1138737_ASA_AR21_01_Frt_AW.indd 11 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
12
Feature – client
Our cashless transacons
provide clients a
safe environment

environment to disburse loans
to its clients through mobile

ASA Tanzania’s cashless transacons



95% of their clients own a mobile phone with a digital wallet.
Collecons and disbursements


loan instalments in one electronic group transfer to the designated



Besides the loan processing fee and security collected in cash, the


Trade-o




their clients, as it minimises fraud and risk and provides security





Future-proof




convincing as payment aggregators, which have the infrastructure
to support mobile payments, are progressively entering the digital



95%
of clients in Tanzania
own a mobile phone
with digital wallet
I appreciate that the loan from ASA is secure,
as I receive the full amount on my phone and
can return home safely.
Antusa Kimaro
Small business owner
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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
13




struggling to put food on the table. Since she had plenty of land, she


from ASA is secure, as I receive the full amount on my phone and can
return home safely.” Antusa now has 200 chickens and collects six trays of
eggs daily. She recently even expanded her business with two milk cows.
“The loan has given me life; a chance to maintain my house, feed my
children and send them to school.”
Locaon

Branch
Tegeta branch 02
Business

UN SDGs
38737_ASA_AR21_01_Frt_AW.indd 1338737_ASA_AR21_01_Frt_AW.indd 13 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
14
Our investment case

Due to presence in thirteen emerging

What makes us dierent
Socially
responsible
services
Diversied
risk prole









• 
• 
• 

• 
• Full repayment before qualifying for new loans and repeat
loan cycles with set limits.
• 


markets in Asia and Africa. The impact of principal risks on its business

The risk management features embedded in the ASA Model, such as


credit and growth risks were predominantly impacted.




in current as well as in future markets in Asia and Africa.
30yrs
Micronance experience
Nil
Dividend
5.5%
CEY
344m
Prospects
1.1%
Return on Assets (‘ROA’)




addressable-market
38737_ASA_AR21_01_Frt_AW.indd 1438737_ASA_AR21_01_Frt_AW.indd 14 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
15
As a result of staying close to clients Decentralised business model
Outstanding
credit
methodology
Highly
scalable







from being over-leveraged.

executes the ASA Model in a disciplined way across all markets. The




via smartphones and other mobile devices, market-by-market over the



deposit-taking licences.


obtain licences in all countries.
74%
Client retenon rate
14 days
Client assessment and
selecon process
19%
Of branches <3 yrs old
38%
Deposit-taking licences
5.2%
PAR>30 dpd


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ASA Internaonal Group plc
Annual Report and Accounts 2021
16
ESG report
Conducng our
business responsibly
2021 progress in environmental, social and governance areas




Environment
Social
Governance








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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
17
Non-nancial informaon statement
ESG Our policies and pracces Descripon
Exclusion list

Environment and Social
Management System (‘ESMS’)

Environmental policy

Emergency Preparedness and Response
Plan (‘EPRP’)

Client Protecon Principles (‘CPP’)
Read more on page 19
Client Economic Yield (‘CEY’) survey
Read more on page 19

Client Complaint Resoluon Commiee (‘CCRC’)
Read more on page 19
Client and employee sasfacon survey
Read more on pages 19 and 21

Grievance Migaon Commiee (‘GMC’)
Read more on page 21
Health and safety
Read more on page 21
Whistleblowing



Child Labour and Protecon


Sexual Harassment Eliminaon


Non-Discriminaon



Code of Conduct


An-Bribery and An-Corrupon



An-Money Laundering








Gender diversity Male Female
Number of Board Directors¹ 6 1
Number of Independent Directors of
subsidiaries² 
Number of senior employees,³ other than
Board Directors  36
Number of employees, other than
Board Directors and senior employees  
Diversity and gender

 
Figures as at 31 December 2021.
2 Not including Directors appointed on the Board of the plc.
 
Directors.
 
Read more on page 21
38737_ASA_AR21_01_Frt_AW.indd 1738737_ASA_AR21_01_Frt_AW.indd 17 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
18
ESG report 
Socially responsible








Socially responsible model





• 
• 
• 

• 
• Full repayment before qualifying for new loans and repeat loan
cycles with set limits.
• 





its socially responsible lending principle. In countries where lockdowns





disbursing new loans in order to reassess the earning capacity of clients.
UN Sustainable Development Goals (‘SDGs’)



SDG 1 – No poverty: 






poverty.
SDG 5 – Gender equality: As women generally have good loan





SDG 8 – Decent work and economic growth: 


are used to expand their businesses. Many clients buy and sell goods

SDG 9 – Industry, innovaon and infrastructure:



thirteen countries.
SDG 10 – Reduced inequalies: By providing working capital loans

Through our responsible business model, the Group most acvely
supports ve SDGs.
Breakdown of social

38737_ASA_AR21_01_Frt_AW.indd 1838737_ASA_AR21_01_Frt_AW.indd 18 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
19
93%
Client Sasfacon Rate
91%
SPI4
5.5%
Client Economic Yield
Protecng our clients

progress and to serve the best interests of its clients. In order to ensure,

indicators are adopted.
Policies and pracces
Prevent over-borrowing




Compeve pricing


that depend on the country, product and loan term. The interest rates


Client Protecon Principles (‘CPP’)








as part of the Social Performance Indicator assessment.


Treat employees responsibly
Treat clients responsibly



The Group’s average scores on the six dimensions of the Universal
Standards as part of the SP14 assessment.
Tools and indicators
Social Performance Indicator (‘SPI4’)







Client Complaint Resoluon Commiee (‘CCRC’)

lodge complaints about inappropriate behaviour or treatment by any of






a loan denial and postponement of instalments. The reported issues

Client sasfacon survey



includes, amongst others, the loan approval process, interest fee and




Client Economic Yield (‘CEY’)

to clients. The survey samples approximately 1% of total clients on their




88%
97%
96%
88%
84%
95%

38737_ASA_AR21_01_Frt_AW.indd 1938737_ASA_AR21_01_Frt_AW.indd 19 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
20
ESG report 
Socially responsible 
Supporng our colleagues
Recruing young talent





but most of them have recruited more than the previous years as a result
of expansion.
Fostering employee development






colleagues, and regular in-branch mentoring and coaching from more

managers. Training remains an important element, also when employees

laundering, diversity and inclusivity, quality improvement, skill


Encouraging growth and advancement

successfully incorporated the core principles of the ASA Model and


have successfully climbed through the ranks. This not only supports the







Supporve and safe workplace

01
Maintain integrity which includes being honest,
trustworthy, consistent and open, as well as
always acng in accordance with the highest
ethical standards.
02
Show respect to others, acvely listen, respond
appropriately, work eecvely with diverse
peoples, and be willing to learn from others.
03
Be accountable in responsibilies and commied
to ensuring quality services, and nd soluons
through self-iniaves.
38737_ASA_AR21_01_Frt_AW.indd 2038737_ASA_AR21_01_Frt_AW.indd 20 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
21
80%
Employee
retenon rate
85%
Employee
sasfacon rate
12,924
Training aendees
Tools and indicators
Employee sasfacon survey





their tasks help them grow professionally.
Providing a safe work environment

environment that endorses the welfare of employees and safeguards the

Policies and pracces
Health and safety



or illness, and maintains safe equipment and infrastructures at the


with risk categories to ensure regular supervision and monitoring



proofed work spaces.


December 2021.
Whistleblowing





the code of conduct. In April and May 2021, training sessions were

awareness on this topic. No incidents have been reported across the

Grievance Migaon Commiee (‘GMC’)


work-related concerns or complaints without fear of reprisal. It provides
a fair and quick means of dealing with complaints. It also serves as an


six appeals have been dismissed. Regarding the two direct complaints,



Diversity


celebrates its culturally diverse workforce. In terms of gender, in 2021,







employees are under 30 years old and 0.6% over 50.


38737_ASA_AR21_01_Frt_AW.indd 2138737_ASA_AR21_01_Frt_AW.indd 21 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
22
±4
Disaster preparaon
drills conducted yearly



picked up and uprooted trees. As the water rapidly rose, we secured


the water was neck-deep.
We had been informed about the typhoon in the news and our

We prepared by ensuring the safety of our team by advising them

equipment to higher ground, and buying non-perishable food.
As the water subsided, we started to clean and retrieve our things. There
was no electricity or internet, and there were long lines in front of banks,

money to buy food, most stores were closed.


goods which we packaged and distributed to our clients. I am relieved for

Locaon
The Philippines
Branch

Job Title
Branch manager
UN SDGs
Feature – colleagues
38737_ASA_AR21_01_Frt_AW.indd 2238737_ASA_AR21_01_Frt_AW.indd 22 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
23
Resilience in the
face of adversity


volcanoes and frequent earthquakes, natural

Philippines. The team must always be prepared.
Pagasa Philippines’ disaster management





Preparing for natural disasters









In the event of a disaster, clear guidelines are disseminated to the



made aware of what to do during a calamity and familiarised with the




Responding and coping with the aermath of calamies



set up beforehand, disaster relief is mobilised. Supplies are brought



clients are provided with a moratorium. Furthermore, assessments are




Depending on the absolute damage and the response by governments

two weeks.
Destrucve typhoon Rai
Typhoons are a regular occurrence during the monsoon season, but can




9 million people displaced, 36 million homes damaged or destroyed, and


Because we were informed and guided on what



area, so I have learned to not be complacent, as
the climate is unpredictable.
Edgar Se-It
Branch manager
38737_ASA_AR21_01_Frt_AW.indd 2338737_ASA_AR21_01_Frt_AW.indd 23 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
24
ESG report 
Our community programmes






Health Educaon
Contribung to the health and well-being of the community, especially to
that of the most vulnerable, is a vital aspect of improving their lives. The
Company conducts many dierent projects in this eld, such as wheelchair
distribuons, sanitary towels and medical equipment donaons, health
camps, a vaccinaon programme and early-cancer-detecon services
in collaboraon with reputable health organisaons. To reduce
waterborne diseases, the installaon of water lters, tanks, treatment
plants and boreholes at schools or in the communies are organised.
Receiving quality educaon is a key factor in advancing nancial
inclusion and socioeconomic progress, and in escaping poverty,
since higher levels of educaon are associated with increased
nancial independence and greater ability to create wealth and
parcipaon in the economy. Therefore, various projects have
been iniated which encourage learning and development, such
as scholarship funds, skill development training, distribung study
materials and a tutoring programme.
Clean water and sanitaon in Nigeria

safe drinking water. To address this issue, ASA Nigeria has installed a total


diseases such as typhoid, cholera, and the symptoms of diarrhoea,

UN SDGs
Impact indicators 2021
• 5 water boreholes installed.
• 
• 
Impact indicators 2021
• 
• 250 tablets distributed to students.
• 
UN SDGs
Tutoring programme in India


2020 and 2021, ASA India conducted a survey amongst clients and
found that many students were willing to study online, but did not have
smartphones or tablet computers. Thus, 250 tablets were distributed
to students which they can share to follow the online classes together.





com/responsibility/community-programmes/
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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
25
Disaster management
Eorts are made to respond to current emergencies, contribung to clients’ safety in mes of despair
through capacity building. This mostly involves providing necessary resources to build upon the
resilience of clients.
Due to the severe health risks and country regulaons related to the pandemic, most operang
subsidiaries have focused on Covid support eorts in 2021, accounng for 27% of the spent budget
and 89% of the reached beneciaries. This support oen included distribuon of essenals to ensure
safety and hygiene, such as soap and reusable masks.
Impact indicators 2021
• 
• 
UN SDGs
Relief for vicms of typhoon in the Philippines
Typhoons are a regular occurrence during the
monsoon season in the Philippines. In December




rice, canned goods and noodles, to 12,055 clients.

to act as a support system, responding to
the immediate and basic needs of our clients

Enamul Haque
Chief Operang Ocer, ASA Internaonal

For a feature on how employees in the
Philippines prepared and responded to
Typhoon Rai, see pages 22 and 23
Relief for vicms of re/demolion in Kenya








structures were demolished.
2021 performance
$0.4m
USD spent
27%
Spent on Covid
1.1m
Beneciaries
1,846
Iniaves
38737_ASA_AR21_01_Frt_AW.indd 2538737_ASA_AR21_01_Frt_AW.indd 25 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
26
Feature – community
Contribung to the
health and safety of
the communies

proceeding more rapidly in some countries
than others, with all the consequences


Contribuon to the community

and the economy as a whole. In India, the lockdowns, which were
implemented over various stages in all states since March 2020, restricted
the movement of all people and immensely impacted the livelihoods of


public transport and on buying and selling goods in public spaces.

and/or mandatory measures, such as frequently washing hands with


resources in the rural areas where many low-income people reside.
The Covid situaon in India






private hospitals and centres.




technical and required a computer or smartphone, and not everyone was





ASA India’s rst Covid vaccinaon camp






in the vicinity and had not been vaccinated yet.

venue with ample space was found in a school building. To contribute








completed. Moreover, the mobile van, which ASA India previously

transport the vaccine at the required temperature.
For updates on more recent camps conducted visit the
responsibility page on our website

for clients and their families, we make our

a safe and healthy society.
Anjan Dasgupta
Managing Director, ASA India
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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
27
3.6%
Vaccinaon rate in India
at the me of ASA India’s
1st vaccinaon camp

Beneciary experiences


able to arrange this before ASA India contacted me. Another MFI I have


Ruby, a client of ASA India, states.

was pleased with the smooth arrangement of the camp and the


Through this programme, ASA India contributed to the health and safety



Locaon
India
State
West Bengal
Community

UN SDGs
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ASA Internaonal Group plc
Annual Report and Accounts 2021
28
ESG report 
Migaon of emissions




subsidiaries concerning feasibility studies to reduce emissions. Several


Policies and pracces
Environment and Social Management System (‘ESMS’)







Standards for Social Performance Management and other relevant
standards in the industry.
Environmental policy

comply with to reduce and prevent harmful impact on the environment.
The environmental policy will be reviewed and supported with the

Exclusion list


on biodiversity or the broader environment. Where appropriate, the

Environmentally
responsible


Through our responsible business model, we are acvely supporng
the UN’s sustainable development agenda, working towards the SDGs.

Adaptaon to climate change




stakeholders how it plans to deal with this topic.
Read more on page 29
Policies and pracces
Emergency Preparedness and Response Plan (‘EPRP’)




Read more on pages 22 and 23
Tools and indicators
Natural Calamity Impact Assessment (‘NCIA’)







seasonal tropical storms.
38737_ASA_AR21_01_Frt_AW.indd 2838737_ASA_AR21_01_Frt_AW.indd 28 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
29
Progress statement: Task Force on
Climate-Related Financial Disclosures (‘TCFD’)





Progress









Posion and ambion

meet regularly to discuss progress and performance on climate-related


will be requested to take more responsibility and, where appropriate,

Progress





Posion and ambion
As the risk assessment is being conducted, areas of focus are likely
to include the risks arising from acute and chronic climate impact and



Monitoring of climate impact and a detailed assessment will be


not yet considered.

Progress



credit risk, liquidity risk, growth risk, health and environmental risk, and



detailed climate-related risk assessment for the year 2022.
Read more about risk management on pages 50 and 51
Posion and ambion


procedures; and developed templates for assessing climate-related risks






Progress




on pages 30 and 31
Posion and ambion


and targets to ensure performance can be measured. It aspires to
disclose suitable targets which align with its climate strategy and risk


Governance
Risk
Management
Strategy
Metrics
and Targets
38737_ASA_AR21_01_Frt_AW.indd 2938737_ASA_AR21_01_Frt_AW.indd 29 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
30
ESG report 








its energy usage in 2021.
Energy eciency acons
Acon taken in 2021 Planned acon in 2022


in 10 of 15 regions.
Discussion to be completed and plan to be shared across all regions.


















Solar panels installed in two regions. 


Banking System vendors.

gradually consider more sustainable suppliers.





down by scopes 1, 2 and 3.
2021 Streamlined Energy and
Carbon Reporng (‘SECR’)
38737_ASA_AR21_01_Frt_AW.indd 3038737_ASA_AR21_01_Frt_AW.indd 30 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
31
Methodology and scope



and the emissions statements.


Scope and subject maer




Energy and GHG sources included in the process
• Scope 1

controlled vehicles and generators have been included.
• Scope 2

has been applied.
• Scope 3



been included.


is working with building managers to develop a more complete data set
in this area.
, N
SF and NF.


Parculars 2021 2020*
Energy consumpon used (kWh)
  
  
  30,566,505
  
Total (kWh) 42,090,178 36,345,097
Emissions (tCO
2
e)
Scope 1

2
  215.20

2
  

2
  
Scope 2

2
  
Scope 3

2
  
Total locaon based tCO
2
e 6,382 5,383
Intensity rao
  

2
  
* The data for 2020 has been reviewed, recollected and revised.
Vericaon

38737_ASA_AR21_01_Frt_AW.indd 3138737_ASA_AR21_01_Frt_AW.indd 31 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
32
Secon 172 statement
Engaging with our stakeholders



Our stakeholders How we engage
How the Board engages and
is kept informed What maers most

• 

• 

• 
• Senior management visits clients.
• 
clients via mobile phones.
• 

• Monthly business updates.
• 

• 
• 
• 
for the clients.
• 
complaints.
• Market-based interest rates.
• Transparent policies and procedures.
• Moratoriums, if needed.
• 

• 

• Senior management is represented

• 

• 

• 


• 

• 


• A healthy and safe working
environment.
• 
• 

• 
• 

• Awareness of the need for increased
gender diversity.

• Branches are embedded in the

• 
community members.
• 

• Investment and engagement in

• 

feedback.
• Budget spend and impact studies of

• 
• 

• 
• 
hardship.

• 

• 

news.
• 

• Securing liquidity.
• Securing a stable and reliable funding

• 


• To stay updated about the performance
of the business.
• 
sources.
• 

• 
Shareholders
and investors
• Business updates.
• 
announcements.
• 
• A dedicated investor website.
• Investor conferences, roadshows

• Adopt shareholder and investor

• 
regular IR updates to the Board.
• Analyst reports.
• Provide feedback on RNS
announcements and Annual Report.
• 
• To stay updated about the performance

long-term goals, strategy and

• 
• 
strategy.
• 


Regulators and
governments
• 

• 
regulatory bodies.
• 
councils, local law enforcement
agencies, government agencies and

networks.
• 

• 


• 
sustainable lending environment for
clients.
• 
• 
requirements, local rules and

• 
taken by local governments and
regulatory bodies.
38737_ASA_AR21_01_Frt_AW.indd 3238737_ASA_AR21_01_Frt_AW.indd 32 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
33

Decision making
during the year
Background






S172 consideraons
In 2021, the Board noted and discussed the reasons for introducing







the environmental impact of travel.





regulatory requirements such as banking licences and IT requirements,
• Add digital services, integrated with branch model • 
• 
• Regulators
• Shareholders



To meet the new business requirements and the IT requirements by
regulators, the Board agreed to upgrade the current systems to a more
comprehensive core banking system.
Outcome
The Board noted that the management team approved of the digital














 
Read more in the CEO review on
page 06 and strategy on page 10
38737_ASA_AR21_01_Frt_AW.indd 3338737_ASA_AR21_01_Frt_AW.indd 33 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
34
Financial review
Signicantly improved operaonal
and nancial performance


(Amounts USD millions) FY 2021 FY 2020 FY 2019
YoY
% change
YoY % change
(constant
currency)
   2.5 0%
Number of branches  1,965  4%
  2.6  897% 890%
¹    556% 523%
²    -3% 3%
    -3% 3%
³ 5.2% 13.1% 1.5%
 

 

 
FY 2021 highlights
• 


• 



• 

• 




• 

clients a temporary moratorium of the payment of one or more loan




• 

end of December 2021.
• 
of unrestricted cash and cash equivalents, with a funding pipeline

• 

Outlook







38737_ASA_AR21_01_Frt_AW.indd 3438737_ASA_AR21_01_Frt_AW.indd 34 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
35
(Amounts USD thousands) FY 2021 FY 2020 FY 2019
YoY
% change
YoY % change
(constant
currency)
    897% 890%
  -1,395  556% 523%
 77% 98% 60%
¹ 1.1% -0.2% 6.7%
¹ 6.0% -1 . 3% 34.5%
¹ 556% -10 4 % 6%
    -3% 3%
    -3% 3%
Total assets    -3%
²    10%
Interest-bearing debt²    -7%
Share capital and reserves   111,169 -3%
Number of clients    0%
Number of branches  1,965  4%
    -3% 3%
 5.2% 13.1% 1.5%
Client deposits as % of loan porolio 22% 19% 17%
1 TTM refers to trailing 12 months.
 
Dirk Brouwer, Chief Execuve Ocer of ASA Internaonal,
commented:











economic crisis.”

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ASA Internaonal Group plc
Annual Report and Accounts 2021
36
Financial review 
South Asia
(Unaudited)
(Amounts USD thousands) FY 2021 FY 2020 FY 2019
YoY
% change
YoY % change
(constant
currency)
   20,020 -49% -49%
 -12, 393   -18 4 % -189 %
 154% 134% 50%
 -5.5% -1. 7 % 6.1%
 -27. 3% -7. 8% 26.6%
 -18 4% -131% -5%
    -16% -11%
    -16 % -11%
Total assets  253,360  -22%
  2,610  -6%
Interest-bearing debt    -20%
Share capital and reserves  53,232  -30%
Number of clients    -7%
Number of branches    3%
  201  -10 % -4%
 9.6% 21.3% 2.0%
Client deposits as % of loan porolio 1% 1% 1%
• 
• 
• 


$182.3m
Outstanding loan porolio (USD)
Sri Lanka
India
Pakistan
38737_ASA_AR21_01_Frt_AW.indd 3638737_ASA_AR21_01_Frt_AW.indd 36 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
37
Awards
Country: India
Name of accolade:

Year: 2021
India Pakistan 






• 

• 

• 

• 
1
declined from INR





to State Bank of India.
• 

• 
• 
moratoriums granted to 126k monthly
average of clients whose loans were
restructured in line with RBI guidelines.
• 

• Number of branches up from 292 to 325

• 


• 


• 
• No moratoriums granted to clients.
• Number of clients down from 56k to 53k

• Number of branches remained at 66.
• 


• 


• 
• 

 

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The Philippines
Myanmar
$62.3m
Outstanding loan porolio (USD)
ASA Internaonal Group plc
Annual Report and Accounts 2021
38
Financial review 
(Unaudited)
(Amounts USD thousands) FY 2021 FY 2020 FY 2019
YoY
% change
YoY % change
(constant
currency)
    101% 81%
 -339 -3,366  90% 69%
 97% 135% 74%
 -0.3% -2.7% 4.8%
 -1. 8 % -16 .1% 29.1%
 90% -16 3 % 38%
    -16 % -4%
    -17 % -5%
Total assets  119,152  -11%
 20,956  22,995 -13%
Interest-bearing debt 60,392   -9%
Share capital and reserves  20,259  -17 %
Number of clients    -7%
Number of branches    1%
    -11% 1.5%
 2.1% 4.1% 1.0%
Client deposits as % of loan porolio 34% 32% 27%
• 
• 

South East Asia
38737_ASA_AR21_01_Frt_AW.indd 3838737_ASA_AR21_01_Frt_AW.indd 38 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
39
The Philippines Myanmar




• 

• 

• 


• 


• 
• 
granted to 136 monthly average of clients.
• Number of clients down from 129k to 111k

• Number of branches increased from 93 to

•  billion
 billion

• 


• 
• 

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ASA Internaonal Group plc
Annual Report and Accounts 2021
40
Financial review 
West Africa
Sierra Leone
Nigeria
Ghana
$94.2m
Outstanding loan porolio (USD)
(Unaudited)
(Amounts USD thousands) FY 2021 FY 2020 FY 2019
YoY
% change
YoY % change
(constant
currency)
   23,113 85% 89%
 25,019  15,935 86% 90%
 37% 49% 45%
 20.6% 13.2% 17. 3%
 45.4% 31.1% 45.7%
 86% -16 %% -6%
    21% 29%
    21% 28%
Total assets    25%
    17%
Interest-bearing debt  10,255 11,919 -31%
Share capital and reserves 61,222   25%
Number of clients    2%
Number of branches    2%
 210   18% 25%
 2.6% 2.7% 1.5%
Client deposits as % of loan porolio 49% 51% 49%
• 
• 


38737_ASA_AR21_01_Frt_AW.indd 4038737_ASA_AR21_01_Frt_AW.indd 40 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
41
 Nigeria 







• 

• Number of branches up from 129 to 133

• 


• 


• 
• No moratoriums granted to clients.
• 

• Number of branches maintained at 263.
• 


• 


• 
• No moratoriums granted to clients.
• 

• 

• 


• 


• 
• No moratoriums granted to clients.
Awards
Country: 
Name of accolade:


Year: 2021
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Zambia
Rwanda
Kenya
Tanzania
Uganda
ASA Internaonal Group plc
Annual Report and Accounts 2021
42
Financial review 
$64.9m
Outstanding loan porolio (USD)
(Unaudited)
(Amounts USD thousands) FY 2021 FY 2020 FY 2019
YoY
% change
YoY % change
(constant
currency)
 6,605 1,652  300% 297%
  1,069 6,160 333% 326%
 75% 90% 62%
 6.5% 1.8% 12.6%
 25.5% 6.7% 51. 0 %
 333% -83% 69%
    43% 42%
 66,629   44% 44%
Total assets   59,356 40%
    30%
Interest-bearing debt  26,292  57%
Share capital and reserves  16,313  22%
Number of clients  319, 262  31%
Number of branches  359 316 13%
 160   10% 10%
 1.3% 13.2% 0.6%
Client deposits as % of loan porolio 28% 30% 29%
• 


East Africa
38737_ASA_AR21_01_Frt_AW.indd 4238737_ASA_AR21_01_Frt_AW.indd 42 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
43
Rwanda 



• 

• Number of branches maintained at 30.
• 


• 


• 
• No moratoriums granted to clients.
• Number of clients increased from 5k to
reach 15k.
• Number of branches increased from 10

• 

• 

• 
• No moratoriums granted to clients.
  






• Number of clients up from 92k to 119k

• Number of branches up from 100 to 112

• 


• 


• 
• No moratoriums granted to clients.
• 

• 

• 


• 


• 
• No moratoriums granted to clients.
• 

• 

• 


• 


• 
• No moratoriums granted to clients.
Awards
Awards
Country: 
Name of accolade:


Year: 2021
Country: 
Name of accolade:


Year: 2021
38737_ASA_AR21_01_Frt_AW.indd 4338737_ASA_AR21_01_Frt_AW.indd 43 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
44
Financial review 
Regulatory capital

to minimum regulatory capital requirements. As of 31 December 2021,

regulatory capital requirements.
Asset/liability and risk management



• 
the average tenor of debt provided by third-party banks and other

• Foreign exchange losses are minimised by having all loans to any



• 


soon as reasonably possible.







Funding


In USD millions 31 Dec 21 31 Dec 20 31 Dec 19
   
   260.6
 36.5 23.5 

   30.0
   111.2
Total funding 505.7 524.9 507.1


the average tenor at issuance of loans to customers which ranges from
6-12 months for the bulk of the loans.

more than 60 lenders throughout the world, which has provided







2021, the balance for credit lines with breached covenants that did





Regulatory environment


Key events 2022
India
• 




changes include the removal of the interest rate cap and margin cap,


to clients where repayment with interest is limited up to a maximum

• 

of the loan.
Pakistan
• 

bank licence.
Sri Lanka
• 
in order to prevent clients from over-borrowing due to the current
economic crisis.
Myanmar
• 



Tanzania
• 

Kenya
• 

38737_ASA_AR21_01_Frt_AW.indd 4438737_ASA_AR21_01_Frt_AW.indd 44 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
45
Based on the received waivers, ongoing discussions, prior experience,












• 



• 
Impact of foreign exchange rates






Dollar capital.
Countries FY 2021 FY 2020 FY 2019
Δ FY 2020
– FY 2021
    
  160.3  
 202.9   
 51.1   
    
 6.2 5.9  
   362.5 
    
 113.2 109.0  
    3%
    1%
    
  21.1  21%










Forward-looking statement and disclaimers



to purchase, otherwise acquire, issue, subscribe for, sell, or otherwise



is released, published or distributed should inform themselves about

38737_ASA_AR21_01_Frt_AW.indd 4538737_ASA_AR21_01_Frt_AW.indd 45 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
46
South
Asia
South
East Asia
Country review
Regulatory environment
India





Regulatory environment


issued by the RBI.






changes include the removal of the interest rate cap and margin cap,



Pakistan


Regulatory environment



the State Bank of Pakistan which, once awarded, will enable it to take













Regulatory environment




The Philippines




Regulatory environment

only credit.
Myanmar


located in Bago State.
Regulatory environment
ASA Myanmar is regulated by the Financial Regulatory Department of



to a maximum of 5% of the value of the loan. In February 2020, ASA

to collect voluntary savings.
38737_ASA_AR21_01_Frt_AW.indd 4638737_ASA_AR21_01_Frt_AW.indd 46 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
47
West
Africa
East
Africa
Nigeria




receipt of all regulatory approvals.



Regulatory environment


deposits from its clients.






Regulatory environment

as a savings and loans company. It is licenced to take deposits from
its clients.




Regulatory environment

as a non-deposit-taking company.



Regulatory environment





number of branches in Dar es Salaam.
Regulatory environment








Regulatory environment


has a lending-taking MFI licence.
Rwanda



Regulatory environment





Regulatory environment



38737_ASA_AR21_01_Frt_AW.indd 4738737_ASA_AR21_01_Frt_AW.indd 47 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
48
Key Performance Indicators
KPIs



Financial
USD 403.7m
Outstanding Loan Porolio (‘OLP’)
USD 181
Gross OLP/Client
78%
Total Debt/OLP
2
021
2
020
2
019
$403.7m
$415.3m
$467.4m
2
021
2
020
2
019
$181m
$187m
$186m
2
021
2
020
2
019
78%
81%
68%


and direct assignment loans with SBI.


of clients.



28%
Net Interest Margin (‘NIM’)
5.2%
PAR>30 dpd
77.4%
Cost to income rao
2
021
2
020
2
019
28%
19%
26%
5.2%
1.5%
13.1%
2
021
2
020
2
019
77.4%
98%
60%
2
021
2
020
2
019

the interest income generated and the amount of



have one or more instalment repayments of principal
past due for more than 30 days, but less than 365 days,




exposure.


USD 6.4m
Reported net prot aer tax
1.1%
Return On Assets (‘ROA’)
6.0%
Return On Equity (‘ROE’)
$6.4m
-$1.4m
$34.5m
-$1.4m
2
021
2
020
2
019
1.1%
-0.2%
6.7%
2
021
2
020
2
019
6.0%
35%
-1.3%
2
021
2
020
2
019






USD 0.09¢
Earnings Per Share (‘EPS’)
Nil
Dividend Per Share (‘DPS’)
$0.09¢
-$0.01¢
$0.34¢
2
021
2
020
2
019
NIL
NIL
NIL
2
021
2
020
2
019


ordinary shares outstanding during the year. For 2021,
number of shares is equivalent to the number of ASA





38737_ASA_AR21_01_Frt_AW.indd 4838737_ASA_AR21_01_Frt_AW.indd 48 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
49
Non-Financial
79
Number of new branches
2,044
Number of branches
1,165
Clients per branch
2
021
2
020
2
019
79
70
230
2,044
1,965
1,895
2
021
2
020
2
019
2
021
2
020
2
019
1,165
1,212
1,337
  
divided by the total number of branches.
13,047
Number of sta
33.4%
Gender diversity
85%
Employee sasfacon rate
13,047
12,535
12,480
2
021
2
020
2
019
33.4%
33.0%
32.0%
2
021
2
020
2
019
85%
N/A
83%
2
021
2
020
2
019
The number of people directly employed by the

Number of female employees compared to total
employees.



93%
Client sasfacon survey
74.0%
Client retenon rate
2.4m
Number of clients
93%
N/A
92%
2
021
2
020
2
019
74.0%
77.6%
75.4%
2
021
2
020
2
019
2.4m
2.4m
2.5m
021
020
019
This survey is conducted by interviewing at least


delivered.

clients in a period from the number of clients at the end
of that period divided by the total number of clients at
the beginning of the period. Periods based on tenor of


5.5%
Client Economic Yield (‘CEY’)
6,382 tonnes CO
2
Carbon footprint
91%
Social Performance Index (‘SP14’)
5.5%
NIL
7.1%
2
021
2
020
2
019
6,382
5,383
7,132
2
021
2
020
2
019
91%
89%
88%
2
021
2
020
2
019




emissions of greenhouse gases, carbon emissions from




The assessment is divided into six dimensions with both

carries a score of 100.
38737_ASA_AR21_01_Frt_AW.indd 4938737_ASA_AR21_01_Frt_AW.indd 49 28/04/2022 15:4628/04/2022 15:46
 
Approval of the risk management framework and risk principles
 

 
 
framework including principal processes and procedures
 
 

 
 
Governance framework
Three lines of defence
Risk and control cycle
from idencaon to reporng
Primary risk categories
Risk culture
Risk resources
and capabilies
1
Board
role
Senior
management role
Risk appete
ASA Internaonal Group plc
Annual Report and Accounts 2021
50
Risk management



safe and compliant way.
Risk management framework







are designed and developed having considered any related risk elements.





Risk appete









with any disreputable individuals.









 
38737_ASA_AR21_01_Frt_AW.indd 5038737_ASA_AR21_01_Frt_AW.indd 50 28/04/2022 15:4628/04/2022 15:46
Board of Directors


Three lines of defence
Operaonal management Risk management Internal Audit
First line of defence Second line of defence Third line of defence
  
Primary responsibility for serving clients,
systems, controls and risk management
Provides specialist advice,
governance and oversight



ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
51
Three lines of defence
















to ensure that all units responsible for managing risk are performing their


our website
Principal risks












This resulted in several state governments declaring lockdowns in

of ASA India. The military government in Myanmar announced a

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











low, with two deaths amongst approximately 12.5k employees and

Read more on in note 2.5.2 and 13.2 on pages 122 and

See also the viability statement

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Annual Report and Accounts 2021
52
High
When the risk crosses the tolerance level of




Risk management 
Principal risks



Internally, the Group’s operaonal governance framework and risk management processes are connually reviewed to ensure that, where areas
of improvement are idened, a plan of acon is put in place and can become a key focus for the Board. The eecveness of operang these
processes is monitored by the Audit and Risk Commiee on behalf of the Board. The Company’s risk appete improved in 2021. In 2022, the
Company is reviewing its risk taxonomy, based on its long-term growth strategy.
Read more on pages 10 and 11
Principal risks
Risk level
Risk map
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Regulatory risk
2

3


5

6



9

10
Interest rate risk
11

Medium
When the risk is at the borderline of the

cause moderate impact on achieving the



Low
When the risk is within the tolerance level of




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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
53
Risk Change in 2021 How we migate our risks/next steps
1
Regulatory risk


due to regulatory changes or through

Objecve


that enables it to comply with legal

aims to ensure that regulatory risks
are controlled.
Level of change: 
I
Due to the pandemic, governmental

have taken a variety of measures.

on the IT requirements for deposit-


introduced in certain countries to control the spread
of the coronavirus.
Moratoriums on loan repayments related primarily to



September 2021. Moratoriums granted in Myanmar

lockdowns.

reduced; however, it did not breach the regulatory
benchmark of 15%.






governmental measures curbed businesses.


licence, having met all outstanding requirements.
In West Bengal, India, a lockdown had been imposed in




No new moratoriums were granted to clients in 2022,



and focus rigorously on the recovery of overdue loans,
while strictly controlling costs.

developments in countries like India and Myanmar.

regulated by the central bank in 2022.

deposit-taking licences in 2022.









2


incur a loss because its clients or


Objecve



Level of change: 


as described in note 2.1.1. on pages 111



to 5.2% as at year end 2021.







become customary in recent years, there remains a risk

due to a broad array of external factors as highlighted
under principal risks.

given its experience over many years when faced with
natural disasters and more localised challenges.


limits on the amount of risk it is willing to accept for
each borrower, taking a security deposit where it is
customary and allowed under the current licence,




changes occur.
Level of change key

I


38737_ASA_AR21_01_Frt_AW.indd 5338737_ASA_AR21_01_Frt_AW.indd 53 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
54
Risk management 
Principal risks 
Risk Change in 2021 How we migate our risks/next steps
3

environmental risk



such as natural disasters or other
catastrophic events.
Objecve

processes that allows it to adequately
respond to changes in economic

Level of change: 
I

improved.






Myanmar.



repayment procedures.

Islands and Northern Mindanao in December 2021,


change, these extreme weather events may increase
in frequency.
Read more on pages 22 and 23




regular face-to-face client contact coupled with










environmental policy outcomes and the number of

4




falls due under normal and stress
circumstances.
Objecve
To manage liquidity risks
and avoid loss of business, missed


Level of change: 
I


concern described in note 2.1.1. on

statements.




caused liquidity issues.











covenant breaches and no lenders considered
calling an event of default.



from lenders.




range of funding sources both at local and holding



holding level.

waivers from lenders who have not already provided

breaches as a result of the pandemic, during 2021.


liquidity concerns, which may have a broader impact

5

currency risk

loss arising from adverse movements
in foreign exchange rates.
Objecve
To manage currency risks and minimise
loss due to foreign currency exposure.
Level of change: 
The local currencies of some of the countries





December 2021.






statements.




local currency.


exposure is hedged.


38737_ASA_AR21_01_Frt_AW.indd 5438737_ASA_AR21_01_Frt_AW.indd 54 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
55
Risk Change in 2021 How we migate our risks/next steps
6

All risk and challenges associated with

Objecve

plan in a controlled manner.
Level of change: 

despite the challenges in India and Myanmar.






disbursements of new loans declined, with the focus
on recovery of loans.





prudent as high growth may lead to increasing balances





by the pandemic.
7

technology risk

fail

due
to a failure of its systems and
processes,

of

Objecve

adequate systems and controls that

and the risk of data loss to as low as is

Level of change: 
Progress was made with the development of a digital

An agreement was signed in December 2021 to




by means of recruitment, technical support and
computer skills.
As of December 2021, the data centre and disaster





A pilot scheme to introduce DFS to the market has


followed by the launch of a range of other digital





Measures are taken to reduce the likelihood of a




recovery site is in progress for the remaining countries.
8



people or being unable to retain key


and ethical standards.
Objecve



Level of change: 
I




due to high demand in the market.

requirements in view of its digital strategy.












38737_ASA_AR21_01_Frt_AW.indd 5538737_ASA_AR21_01_Frt_AW.indd 55 28/04/2022 15:4628/04/2022 15:46
ASA Internaonal Group plc
Annual Report and Accounts 2021
56
Risk management 
Principal risks 
Risk Change in 2021 How we migate our risks/next steps
9




environment or failing to ensure its

Objecve



its clients.
Level of change: 
I

reduced in some markets. This may be caused by the


for expansion, all the MFIs were moving to other less

In some African countries digital lenders and services





bankruptcies.








10
Interest rate risk



Objecve
To limit the impact of interest
rate movements and exposure

Level of change: 
In the Asian market, lender interest rates were

hedging cost in some markets such as Pakistan and
Myanmar, as a result.


and interacts with regulators.

interest rate risk is to conduct a cost of funds analysis
and to monitor interest rates in those countries where
there is a limit on the amount of interest it may charge,


11




services.
Objecve

with the long-term interests of
its clients.
Level of change: 
I

concerns.




operates.




inadvertent over-borrowing.

ethical standards are communicated throughout the


economic yield survey.



local credit agencies.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
57
Chairman’s
Introducon
Dear Shareholder
I am pleased to present our Board report for 2021.
In 2021, the Board connued its focus on the strategy for combang
the impact of the Covid crisis. Looking back on my rst full year as
Chair of the Board, I am proud of our management team and sta,
who rose to the challenges we faced to take care of customers and
communies, as Covid connued to impact us all. 2021 has seen a
mixed picture in terms of recovery from the pandemic across our
markets. The Board connued to monitor the impact of Covid and
sustained the 2020 approach to meeng more oen through virtual
meengs, given restricons on travel. This ensured that eecve
Board oversight and strong corporate governance were maintained.
An important development during the year has been adopon by the
Company of a digital strategy and the associated investment in the
development of digital nancial services, including the purchase of a
licence for the Temenos core banking system. I believe this is a very
important investment in the Company’s long-term ability to create
value for all its stakeholders.
Governance Report
Our solid governance framework and operang policies and procedures
were key components in successfully overseeing the Company
and guiding management in the execuon of the desired measures
in the face of challenging and complex operang environments.
Though there were parcular and persistent challenges in certain
key markets, business has remained resilient. In the light of our
nancial results, the Board has decided not to pay a dividend for
2021. We appreciate that this is disappoinng for shareholders,
but believe this is a prudent decision in the circumstances.
We are pleased to nominate Karin Kersten for appointment as a Director
at this year’s Annual General Meeng of shareholders to further
strengthen the Board. At the same me, Praful Patel will rere and we
would like to thank him for his outstanding contribuon to the Company.
We look forward to meeng all the Directors in person during our physical
meengs scheduled for 2022. We also look forward to resuming full
physical engagement with all our stakeholders at the earliest opportunity.
The Company’s 2022 Annual General Meeng will take place on
22 June 2022. As we look ahead to 2022, Covid remains a challenge in
some of our operang countries and will bring connued uncertainty.
However, I believe that our strategy will guide and support all areas
of the business to deal with the challenges that arise during the year.
In conclusion, I would like to thank the Board, the management team,
but, most of all, our employees whose hard work and dedicaon
enabled the Company to move through the past two dicult years.
On behalf of the Board
Guy Dawson
Chairman, ASA Internaonal Group plc
29 April 2022
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ASA Internaonal Group plc
Annual Report and Accounts 2021
58
Board of Directors
Appointment dates: The Directors executed their respecve appointment leers (or service agreements in respect of the Execuve Directors) in relaon to ASA Internaonal plc
on 28 June 2018, the terms of which took eect as of Admission (i.e. 13 July 2018). Guy Dawson was appointed as Chairman with eect from 1 January 2021 pursuant to a leer
of appointment dated 17 December 2020.
Guy Dawson
Non-Execuve Chairman
Appointed: 1 January 2021
N
ID
Hanny Kemna
Independent
Non-Execuve Director
Appointed: 28 June 2018
A/R
R
ID
Dirk Brouwer
Chief Execuve Ocer
Appointed: 15 May 2018
Dr Salehuddin Ahmed
Independent
Non-Execuve Director
Appointed: 7 December 2020
A/R
ID
N
Mr Dawson became a Non-Execuve Director of ASA Internaonal
Holding (‘ASA Internaonal’) in 2013 and became a Director of the
Company on 28 June 2018. He was appointed Chairman of the Board
on 1 January 2021. Mr Dawson connues to chair the Nominaon
Commiee and the Independent Directors’ Commiee. Mr Dawson has
extensive experience as a Non-Execuve Director and previously served
in that capacity on the boards of The BOC Group plc and Alliance Boots
plc. He is currently a Non-Execuve Director of Egerton Capital and
Citywire Holdings. He was a founding partner of the independent
corporate advisory rm Tricorn Partners, and prior to that held senior
investment banking posions in London at Nomura, Merrill Lynch and
Deutsche Bank.
Ms Kemna has been a Non-Execuve Director since 2018 and was
appointed as Senior Independent Director on 1 January 2021. She is the
Chair of the board of Directors for Dutch pension provider and asset
manager MN. Ms Kemna is also the Chair of the Audit Commiee at
insurer Vivat – Athora NL, at healthcare insurer Menzis and at the
Naonal ICT Instute for Healthcare in the Netherlands. Since 2020,
she has served as a deputy member of the Board of the Dutch Court
of Auditors. She worked for Ernst & Young for 22 years and was one
of Ernst & Young’s Global Lead Partners of Operaons and IT audit.
Ms Kemna has a broad experience in working with internaonal nancial
and government instuons.
Mr Brouwer co-founded ASA Internaonal in 2007 and has since served
as its Execuve Director and Chief Execuve Ocer. With over 20 years
of experience in investment banking, and 15 in micronance, he is also
the Managing Director of Catalyst Micronance Investors (‘CMI’),
which he co-founded in 2006. Mr Brouwer has held several senior and
supervisory posions, having acted as a board member of CMI and
Founder and Managing Director of Sequoia, which he founded in 2002.
Prior to this, he spent 14 years working at Merrill Lynch and
PaineWebber. He is also Non-Execuve Chairman of CarbonX.
Dr Ahmed has been a Non-Execuve Director since December 2020.
He is currently a Professor at the Graduate School of Management at
BRAC University and an Independent Director of Grameenphone Ltd.
He is also on the advisory bodies of several governmental and non-
governmental agencies in Bangladesh and a member of the Board of
Trustees of three universies and a postgraduate instute. Dr Ahmed
was the Governor of the Bangladesh Bank (Central Bank) between 2005
and 2009. Prior to this, he was the Managing Director of Palli Karma-
Sahayak Foundaon (‘PKSF’). He has worked as a Consultant for many
internaonal agencies and has authored over 90 publicaons.
The Board of ASA Internaonal combines leadership in
micronance with strong nance and banking experience.
The Directors possess both solid industry experience as well
as mulple years of experience in internaonal nance and
banking, including senior execuve roles.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
59
Commiee:
A/R
Audit and Risk
N
Nominaon
R
Remuneraon
ID
Independent Directors
Appointment dates: The Directors executed their respecve appointment leers (or service agreements in respect of the Execuve Directors) on 28 June 2018, the terms of
which took eect as of Admission (i.e. 13 July 2018). Hanny Kemna was appointed as Senior Independent Director with eect from 1 January 2021 pursuant to a leer of appointment
dated 17 December 2020. Salehuddin Ahmed was appointed as a Non-Execuve Director pursuant to a leer of appointment dated 7 December 2020.
Aminur Rashid
Execuve Director, Operaons
Appointed: 28 June 2018
Praful Patel
Independent
Non-Execuve Director
Appointed: 28 June 2018
R
ID
N
Karin Kersten
Execuve Director,
Corporate Development
Appointed: 25 April 2022
Gavin Laws
Independent
Non-Execuve Director
Appointed: 28 June 2018
A/R
R
ID
Mr Rashid is currently the Execuve Director, Operaons. Since joining
in 2011, he has held the posions of Chief Coordinang Ocer and
Head of Operaons. Prior to this, Mr Rashid was a Director of ASA
Bangladesh, since 1992, which is closely associated with the Company’s
micronance programme. Before joining ASA, Mr Rashid worked at
Grameen Bank. With over 29 years of experience in micronance, he has
held mulple senior industry posions, and worked in extremely varied
developmental contexts including Tajikistan, India, Mexico and Nigeria.
Mr Patel became a Non-Execuve Director of ASA Internaonal in 2013.
He is also a Non-Execuve board member of IMAGO Global Grassroots
and an independent Non-Execuve Director of CMI. Prior to this, he
served as a board member of both the Africa Capacity Building Program
and the African Center for Economic Transformaon, as well as
Chairman of the Appeals Board of the Global Fund and President of the
Centennial Group’s African and Middle East Wing. From 2010 to 2012,
Mr Patel was the Leading Expert Panellist for the Program of
Infrastructure Development for Africa. From 1974 to 2008, he held
several senior leadership roles within the World Bank.
Ms Kersten joined the management of the Group as Corporate
Development Director on 1 October 2021. She joined the Group from
ABN AMRO Bank where she had a disnguished career, most recently
serving as Managing Director, Trade & Commodity Finance. Ms Kersten
is also a Member of the Supervisory Board of Mondriaan Fonds and
Chairman of the Audit Commiee of Mondriaan Fonds. She is a member
of the Selecon Commiee of Hotelschool The Hague.
Mr Laws became a Non-Execuve Director of ASA Internaonal in 2013,
a posion he also holds at Finablr plc. He also serves as the Non-Execuve
Chair at Union Bank UK plc, Berkhamsted Schools Group and Liverpool FC
Foundaon. Prior to this, he was a Director of Nidebsa Limited and a
Trustee of Trans Antarcc Winter Traverse. Unl 2012, Mr Laws worked
at Standard Chartered Bank for over 30 years. During that me, he
served in several execuve roles, both in London and overseas, including
as Group Head of Corporate Aairs and Regional Head of Governance.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
60
Management team
Joint corporate headquarters in Dhaka and Amsterdam
Dirk Brouwer
Chief Execuve Ocer
Joined: 2007
Years of MFI experience: 15
Tanwir Rahman
Chief Financial Ocer
Joined: 2017
Years of MFI experience: 12
Aminur Rashid
Execuve Director, Operaons
Joined: 2011
Years of MFI experience: 32
Marjn Bollen
General Counsel
Joined: 2007
Years of MFI experience: 15
Nadia Zaman
Head of Group Internal Audit
Joined: 3 January 2021
Years of MFI experience: 11
Azim Hossain
Senior Vice President Investments,
Treasury and Risk Management
Joined: 2007
Years of MFI experience: 38
Md Enamul Haque
Chief Operang Ocer
Joined: 2008
Years of MFI experience: 39
Mischa Assink
Chief Accountant
Joined: 2011
Years of MFI experience: 11
Md Asifur Rahman
Chief Technology Ocer
Joined: 2018
Years of MFI experience: 23
The Group’s senior management have signicant experience in the
micronance industry (‘MFI’) as well as tradional nancial services.
Karin Kersten
Execuve Director, Corporate
Development
Joined: 2021
Years of MFI experience: 0.5
Years of banking experience: 22
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Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
61
Regional Director
East Africa
Md Farid Ahmed
Years of MFI experience: 29
Pakistan
Saeed Uddin Khan
Years of micronance
experience: 3
Years of banking experience:
36 (including micronance)
Ghana
Md Aourongjeb
Years of micronance
experience: 15
India
Anjan Dasgupta
Years of micronance
experience: 14
Years of banking experience:
38 (including micronance)
Nigeria
Md Aminul Haque Bhuiya
Years of micronance
experience: 29
Sri Lanka
Manatunga Aanayake
Years of micronance
experience: 14
Years of banking experience:
42 (including micronance)
Uganda
Nurul Islam Chowdhury
Years of micronance
experience: 27
Kenya
A.K.M. Sazzad Hossain
Years of micronance
experience: 13
Rwanda
Jamilur Rahman Chowdhury
Years of micronance
experience: 30
Zambia
A.B.M. Asaduzzaman
Years of micronance
experience: 31
Philippines
T. I. M. Fakruzzaman
Years of micronance
experience: 30
Myanmar
Md Anisur Rahman
Years of micronance
experience: 26
Country Heads
South Asia:
West Africa:
South East Asia:
East Africa:
Sierra Leone
Shariful Islam Khan
Years of micronance
experience: 30
For more informaon see the leadership
teams of the country websites.
Tanzania
Muhammad Shah Newaj
Years of micronance
experience: 10
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ASA Internaonal Group plc
Annual Report and Accounts 2021
62
2021 Board acvies
Aendance at Board and Board Commiee meengs
The aendance of Directors at scheduled meengs of the Board and of Commiees of which they were members during the nancial year is shown
in the table below. Some Directors also aended Commiee meengs by invitaon during the year; this is not reected in the table.
Board
Audit and Risk
Commiee
Remuneraon
Commiee
Nominaon
Commiee
Independent
Directors’
Commiee
Aended Total Aended Total Aended Total Aended Total Aended Total
Execuve Director
Dirk Brouwer 10 10
Aminur Rashid 10 10
Karin Kersten³ – –
Non-Execuve Director
Guy Dawson 10 10 1¹ 1 3 3 3 3
Gavin Laws 8² 10 5 6 3 3 3 3
Praful Patel 10 10 3 3 3 3 3 3
Hanny Kemna 8² 10 5 6 3 3 3 3
Salehuddin Ahmed 10 10 6 6 3 3 3 3
1 Guy Dawson was co-opted onto the Audit and Risk Commiee for the meeng held on 7 December 2021 in the absence of Gavin Laws.
2 The Board meengs in May were held on successive days and discussed substanally the same material. Therefore, although Gavin Laws was absent from one and Hanny Kemna
from the other, they both parcipated equally with the other members of the Board.
3 To be appointed on April 25, 2022
spread of Covid, including (among others) lockdowns, curfews,
mandatory self-isolaon and quaranne, the closure of public places
(such as markets), and restricons on public gatherings and travel.
Some of these measures, in parcular the imposion of a temporary
lockdown, materially impacted the income-generang capacity of our
clients and reduced the ability of our sta to conduct regular client
meengs and collect loan instalments and disburse new loans. The
Board carefully monitored the developments in India in parcular,
including cost-saving measures, streamlining the business, and the
provisioning required in relaon to the porolio in India.
• The Board also considered proposals to diversify ASAI’s investor base
in India, the impact of elecons in Assam, capital requirements in
India and Pakistan, and the polical developments in Myanmar.
• The Board acvely discussed the digital nancial services (‘DFS’)
digital transformaon project, the pilot project in Ghana and the app
to be developed in relaon thereto. The acquision of a core banking
system was also on the agenda of the Board, which approved the
appointment of Temenos as a supplier.
• The Board reviewed the progress towards complying with the
recommendaons of the Task Force on Climate-related Financial
Disclosures. The Sustainability Commiee has been set up on the
Board level to ensure Board oversight by including three execuve
Board members, the Chief Execuve Ocer and two Execuve
Directors, in it. The Commiee will meet regularly to discuss progress
and performance on climate-related topics.
• The Board regularly reviewed the impact of the second wave of Covid
on operaons in various countries, especially India and the
Philippines, and the impact thereof on the net prots of the Group.
• The Board regularly reviewed operang reports from the CEO and
the Execuve Director, Operaons, nance reports from the CFO,
the nancial statements and interim nancial statements, and reports
by the Chairmen of the Audit and Risk Commiee, the Remuneraon
Commiee and the Nominaon Commiee.
• The Board approved the Company strategy for 2021-26, which has
three main pillars: to increase nancial inclusion, to add a digital
channel to its branch model, and to broaden its range of products and
services. This will enable the Company’s clients to strengthen their
businesses with a wide range of digital nancial and other online
services as well as strengthening the micronance business model.
It also aims to broaden the range of nancial services oered by the
Company; in parcular, to allow it to conduct branchless banking,
enable the making of digital payments, and diversify its service oering.
• The Board connued to focus on migang the impact of Covid on
the Group and on our clients and delivering operaonal eciency
and cost savings across our business. The frequency of meengs
and exibility in meeng arrangements was increased to deal with
challenges arising through the year. During the rst half of 2021, the
second wave of Covid had a huge impact in many of our operang
countries, especially India and the Philippines, which led governments
in these countries to take stringent measures to halt the further
Governance Report
Board at a glance
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Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
63
Board diversity
Male – 6
Female – 2
Board by gender
<2 years – 2
2-5 years – 2
>5 years – 4
Board by tenure
50-60 – 3
60-70 – 3
>70 – 2
Board by age
Execuve members – 3
Non-Execuve members – 5
Balance of the Board
Changes to the Board
Dirk Brouwer has been on the Board since the establishment of ASA
Internaonal in 2007. All other Directors were appointed as Directors of
Group companies prior to the lisng, except Hanny Kemna who joined in
May 2018 in the run-up to lisng and Salehuddin Ahmed who joined on
7 December 2020 (see details on pages 60 and 61).
With eect from 1 January 2021, Guy Dawson was appointed Chairman
of the Board, and Hanny Kemna replaced him as Senior Independent
Director. Karin Kersten was appointed as an Execuve Director on the
Board on 25 April 2022.
The Code provides that Non-Execuve Directors’ independence is likely
to become impaired aer nine years’ service. Praful Patel will rere at
the 2022 AGM. Meanwhile, the Board wishes to state its belief that
Gavin Laws connues to be independent of the Company and exercise
independent judgement, despite his length of service. In view of Gavin’s
planned rerement in 2023, the Board is acvely seeking a suitably
qualied successor.
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Annual Report and Accounts 2021
64
Governance Report connued
Leadership from the Board
The Board’s primary role is to provide overall leadership and to ensure that the Company is appropriately managed to deliver long-term
stakeholder value.
The Board is responsible for seng the Company’s objecves and
policies, and providing the eecve leadership and control required for a
public company. It is also responsible for approving the Group strategy,
budgets, business plans and major capital expenditure, and it monitors
nancial performance and crical business issues.
The Board supervises the Group’s operaons, with the aim of ensuring
that it maintains a framework of prudent and eecve controls which
enables risks to be properly assessed and appropriately managed. The
Governance report is structured around the key themes of the Code to
provide genuine understanding of how governance supports and
protects the Group and our stakeholders.
Board size and composion
The Board comprises: Guy Dawson (Non-Execuve Chairman), Dirk
Brouwer (Chief Execuve Ocer), Aminur Rashid (Execuve Director,
Operaons), Karin Kersten (Corporate Development Director), Hanny
Kemna (Senior Independent Director), and three further Non-Execuve
Directors: Gavin Laws, Salehuddin Ahmed and Praful Patel. Praful Patel
will rere from the Board with eect from the conclusion of the
2022 AGM.
The Company is commied to ensuring that any vacancies that may
arise are lled by the best-qualied and most suitable candidates and
recognises the value of gender and ethnic diversity in the composion
of the Board. When Board posions become vacant as a result of
rerement, resignaon or otherwise, the Board aims to ensure (through
the Nominaon Commiee, and using an external search agency as
appropriate) that a diverse pool of candidates is considered. By a process
of annual review, the Board ensures that it connues to consist of
members who have the relevant knowledge, skills and experse to
undertake their dues as Directors in such a way as to ensure proper
corporate governance and help to generate sustainable long-term value
for stakeholders.
Biographical details of the Directors at the date of this report are set
out on pages 60 and 61 together with details of their membership of
Board Commiees.
Board balance and Non-Execuve Directors’ independence
The UK Corporate Governance Code recommends that at least half the
Board of Directors of a UK-listed company, excluding the Chairman,
should be Non-Execuve Directors determined by the Board to be
independent in character and judgement and free from relaonships or
circumstances which may aect, or could appear to aect, the Directors’
judgement. Post rerement of Praful Patel the Board will consist of three
Non-Execuve Directors, excluding the Non-Execuve Chairman, and
three Execuve Directors. The Board regards all of the Non-Execuve
Directors as ‘independent Non-Execuve Directors’ within the meaning
of the Code, and is sased that they are free from any business or other
relaonship that could materially interfere with the exercise of their
independent judgement.
Senior Independent Director
As recommended by the Code, the Board has appointed one of the Non-
Execuve Directors to be the Senior Independent Director to provide
a ‘sounding board’ for the Chairman in maers of governance and to
serve as an intermediary for the other Directors and for shareholders
when required. The Senior Independent Director meets the other Non-
Execuve Directors once a year to appraise the performance of the
Chairman, and is available to shareholders if they have concerns which
contact through the normal channels of the CEO and the Chairman
has failed to resolve or for which such contact is inappropriate. Hanny
Kemna has been the Senior Independent Director since 1 January 2021.
The UK Corporate Governance Code further recommends that Directors
should be subject to annual re-elecon. All the Directors of the Company
were re-elected at the AGM held on 30 June 2021.
Compliance with the UK Corporate Governance Code 2018
(‘the Code’)
See the Corporate Governance Statement in the Directors’ Report on
page 95.
Maers reserved for the Board
The Board has responsibility, inter alia, for the overall leadership of the
Company and seng the Company’s values and standards. Specically,
it approves the annual operang and capital expenditure budgets and
any material changes to them. It also oversees the operaons of the
Group so as to ensure prudent management, planning, risk management
and internal control systems, adequate accounng and other records,
and compliance with statutory and other regulatory obligaons. It
periodically reviews performance in the light of the Group’s strategic
aims and business plans and budgets, and ensures that any necessary
correcve acon is taken. The Board is responsible for approving the
interim and annual nancial statements and the Annual Report, including
the dividend policy and the declaraon of interim dividends and
proposing to shareholders of nal dividends.
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Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
65
The Board has overall responsibility for ensuring a sound system of
internal control and risk management, including procedures for the
detecon of fraud and the prevenon of bribery.
The Board has delegated the day-to-day running of the Group to the
CEO and his management team, who review and approve all of the
informaon and proposals that are submied to the Board.
Directors receive a pack of brieng notes and reports for their
consideraon in advance of each Board meeng, including reports on
the Company’s operaons, so as to ensure that they remain briefed on
the latest developments and are able to make fully informed decisions.
The brieng notes and reports, and the Board’s consideraon of them,
take into account the factors set out in secon 172 of the Companies
Act 2006 concerning the need to have regard to the interests of the
Company’s various stakeholders.
All Directors have access to the advice and services of the Company
Secretary, who is responsible for ensuring that Board procedures are
followed and that applicable rules and regulaons are complied with. All
Directors may take independent professional advice at the expense of
the Company in the furtherance of their dues, if they judge it necessary.
On appointment, all Directors are advised of their dues, responsibilies
and liabilies as a Director of a public listed company. Directors have the
right to request that any concerns they have are recorded in the
appropriate Commiee or Board minutes.
Relaonship Agreement
The Company has entered into a relaonship agreement (the
‘Relaonship Agreement’) with its founders (the ‘Controlling Shareholder
Group’), the principal purpose of which is to ensure that the Company
will be able, at all mes, to carry out its business independently of the
members of the Controlling Shareholder Group and their respecve
associates. The Relaonship Agreement contains undertakings from
each of the members of the Controlling Shareholder Group that (i)
transacons and relaonships with it and its associates will be conducted
at arm’s length and on normal commercial terms, (ii) neither it nor any of
its associates will take any acon that would have the eect of
prevenng the Company from complying with its obligaons under the
Lisng Rules, and (iii) neither it nor any of its associates will propose or
procure the proposal of a shareholder resoluon which is intended or
appears to be intended to circumvent the proper applicaon of the
Lisng Rules. The Company is in compliance with the undertakings in the
Lisng Rules and the Relaonship Agreement and so far as the Company
is aware, the undertakings have been complied with by each member of
the Controlling Shareholder Group.
In accordance with the terms of the Relaonship Agreement, for so long
as CMI (currently holding 30.4%) and Catalyst Connuity (currently
holding 16.9%) together retain (i) an aggregate interest of greater than or
equal to 25% in the issued ordinary share capital of the Company, they
shall together be entled to appoint two Non-Execuve Directors to the
Board (but at present have not done so), and (ii) an aggregate interest of
less than 25% but greater than or equal to 10% in the issued ordinary
share capital of the Company, they shall together be entled to appoint
one Non-Execuve Director to the Board. In addion, for so long as CMI
and Catalyst Connuity together retain an interest of 10% or more in the
issued ordinary share capital of the Company, they shall be entled to
appoint one Non-Execuve Director to each of the Company’s
Nominaon Commiee and Remuneraon Commiee.
CMI and Catalyst Connuity previously undertook that, for as long as
Dirk Brouwer remained as CEO and Md Shaqual Haque Choudhury
remained on the Board as the appointee of the Controlling Shareholder
Group and as Chairman of the Company, they would not exercise the
right to appoint an addional Non-Execuve Director to the Board or to
appoint a Non-Execuve Director to the Remuneraon or Nominaon
Commiees. Following the resignaon of Mr Choudhury at the end
of 2020, CMI and Catalyst Connuity were no longer bound by
that undertaking.
The Relaonship Agreement will terminate if the ordinary shares cease
to be listed on the premium lisng segment of the Ocial List and traded
on the London Stock Exchange or the Controlling Shareholder Group
together ceases to retain an interest of 10% or more of the issued
ordinary share capital of the Company (or an interest which carries
10% or more of the aggregate vong rights in the Company from me
to me).
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Annual Report and Accounts 2021
66
Governance Report connued
Governance framework
The Board
Board governance structure
Remuneraon
Commiee
Audit and
Risk Commiee
Nominaon
Commiee
Independent
Directors’
Commiee
Disclosure
Commiee
Sustainability
Commiee
The Board has established a number of Commiees, to which
responsibility for certain maers has been delegated. The Board
Commiee structure is shown in the diagram above. Each Commiee
has wrien terms of reference seng out its roles and responsibilies,
and the extent of the authority delegated by the Board. The terms of
reference are available on the Company’s website. The Chairman of
each Commiee reports regularly to the Board on maers discussed at
Commiee meengs.
The Board Commiees
As envisaged by the Code, the Board has established three Commiees:
an Audit and Risk Commiee, a Nominaon Commiee and a
Remuneraon Commiee. The Board has also established the Disclosure
Commiee and the Independent Directors’ Commiee. If the need
should arise, the Board may set up addional Commiees as appropriate.
Reports on the Commiees’ acvies in 2021 appear later in this report.
Remuneraon Commiee
The Remuneraon Commiee assists the Board in fullling its
responsibilies in relaon to remuneraon. This includes making
recommendaons to the Board on the Company’s policy on execuve
remuneraon, including seng the overarching principles, parameters
and governance framework of the Group’s Remuneraon Policy and
determining the individual remuneraon and benets package of each
of the Company’s Execuve Directors and its Company Secretary.
The Remuneraon Commiee will also ensure compliance with the
Code in relaon to remuneraon.
The Remuneraon Commiee is chaired by Praful Patel, and its other
members are Gavin Laws and Hanny Kemna. The Remuneraon
Commiee normally meets at least three mes a year, and met three
mes in 2021. Upon the rerement of Praful Patel at the 2022 AGM,
Salehuddin Ahmed will join the Remuneraon Commiee and become
its Chairman.
Audit and Risk Commiee
The Audit and Risk Commiee has responsibility for, amongst other
things, monitoring the integrity of the nancial statements of the
Company, reviewing the Company’s internal nancial controls and
monitoring and reviewing the eecveness of the Company’s Internal
Audit funcon and external audit process.
The Audit and Risk Commiee is chaired by Gavin Laws, and its other
members during 2021 were Hanny Kemna and Salehuddin Ahmed.
The Audit and Risk Commiee meets at least four mes a year, and
met six mes in 2021.
Nominaon Commiee
The Nominaon Commiee assists the Board in determining the
composion and make-up of the Board. It is responsible for periodically
evaluang the balance of skills, experience, independence and
knowledge on the Board. It leads the process for Board appointments
and makes recommendaons to the Board, taking into account the
challenges and opportunies facing the Group in the future.
The Nominaon Commiee is chaired by Guy Dawson, and its other
members during 2021 were Praful Patel and Salehuddin Ahmed. Upon
the rerement of Praful Patel at the 2022 AGM, Hanny Kemna will join
the Nominaon Commiee. The Nominaon Commiee meets at least
twice a year, and met three mes in 2021.
Independent Directors’ Commiee
The Independent Directors’ Commiee idenes and manages maers
involving conicts of interest (including potenal conicts of interest)
between any Group company, on the one hand, and any controlling
shareholder or related party (each as dened under the Lisng Rules), on
the other hand. It is also responsible for overseeing and scrunising the
relaonship between the Group, its related pares and its controlling
shareholders (including evaluang, monitoring and approving any
material transacons or arrangements between such pares and
generally monitoring compliance with the Relaonship Agreement
(see page 65).
The Independent Directors’ Commiee comprises all of the Independent
Non-Execuve Directors, being Salehuddin Ahmed, Guy Dawson, Gavin
Laws, Hanny Kemna and Praful Patel. It was chaired by Guy Dawson in
2021 and met three mes.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
67
Disclosure Commiee
The Disclosure Commiee is chaired by the CEO and also includes the
CFO and the General Counsel. It meets as required in order to assist the
decisions of the Board concerning the idencaon of inside informaon
and to make recommendaons about how and when that informaon
should be disclosed in accordance with the Company’s disclosure
procedures manual. Its primary duty is to ensure that inside informaon
is properly disclosed in accordance with the requirements of the Market
Abuse Regulaon.
Reports for each of the Board’s Commiees are set out later in this
report, and provide further detail on their role and responsibilies,
as well as the acvies they have undertaken during the year.
Sustainability Commiee
The Sustainability Commiee has been established as part of the
governance structure of the Group’s sustainability strategy and
management of climate-related risks and opportunies. Board
oversight is ensured by including three execuve Board members
in the Commiee. The Commiee will meet regularly to discuss
progress and performance on climate-related topics.
Meengs of the Board
At each scheduled meeng, the Board receives reports from the CEO,
the Execuve Director, Operaons, and the CFO on the performance
and results of the Group. In addion the COO, the CFO and (since her
appointment on 1 October 2021) the Corporate Development Director
aend each meeng to update the Board on performance, strategic
developments and iniaves in their respecve areas, and the General
Counsel provides updates on compliance, legal and regulatory maers.
In addion, the Board receives regular updates from the Senior Vice
President, Investments, Treasury and Risk Management, and the Head of
Group Internal Audit on risk, compliance and internal audit. Operaonal
updates are provided by the Execuve Director, Operaons and the
COO, and updates related to IT systems of the Company are provided
by the Chief Technology Ocer.
An annual schedule of rolling agenda items ensures that all maers are
given due consideraon and are reviewed at the appropriate point in the
nancial and regulatory cycles. Meengs are structured to ensure that
there is sucient me for consideraon and debate of all maers. In
addion to scheduled or roune items, the Board also considers key
issues that impact the Group, as they arise.
The Directors receive detailed papers in advance of each Board meeng.
The Board and Board Commiee agendas are carefully structured by the
CEO, General Counsel and the Company Secretary for the Chairman’s
approval. Each Director may review the agenda and propose items for
discussion with the Chairman’s agreement. Addional informaon is also
circulated to Directors between meengs, including relevant updates on
business and regulatory announcements. The annual schedule of Board
meengs is decided a substanal amount of me in advance in order to
ensure, so far as possible, the availability of each of the Directors. In the
event that Directors are unable to aend meengs, they receive papers
in the normal manner and have the opportunity to relay their comments
and quesons in advance of the meeng, as well as follow up with the
Chairman if necessary. The same process applies in respect of the
various Board Commiees.
The brieng for each of its meengs covers nancial and operang
performance, treasury, risk, human resources, legal and compliance,
internal audit, IT and CSR maers. Management accounts are produced
for each Board meeng together with an updated dashboard of key
performance indicators, broken down by geographical region. On a
monthly basis the Board receives a management report covering
operaons, the nancial and budgetary situaon, internal audit, taxaon,
treasury, risk, human resources, legal and compliance maers, and
CSR maers.
A further aspect of reporng to the Board is Social Performance
Management (‘SPM’), which covers the handling of complaints,
sasfacon surveys, and the achievement of social goals. (This is referred
to in more detail in the Non-nancial informaon statement on page 17.)
For further informaon on the Board’s work during the year and a table
of aendance at Board and Commiee meengs, see ‘Board at a glance’
on page 62.
Chairman and Chief Execuve Ocer
The division of responsibilies between the Chairman and the CEO has
been agreed by the Board. The Chairman has responsibility for the
leadership of the overall eecveness of the Board, seng the Board’s
agenda, ensuring the maintenance of a proper balance of skills and
experience on the Board, succession planning, and the provision to
the Board of accurate, clear and mely informaon to support sound
decision-making and to enable individual Directors to full their dues.
The Chairman during 2021 was Guy Dawson. His other signicant
commitments are set out in his biography on page 60. The Board is
sased that his other commitments do not restrict him in carrying out
his dues eecvely.
The CEO, Dirk Brouwer, reports directly to the Chairman of the Board
and is responsible for all execuve management within the Group on
a day-to-day basis, within the authority granted by the Board. He is
assisted in this by a senior management team which reports to him
and meets him on a regular basis.
The Company’s Independent Non-Execuve Directors are Praful Patel,
Gavin Laws, Guy Dawson, Hanny Kemna and Salehuddin Ahmed. Within
the Board’s overall risk and governance structure, the Independent
Non-Execuve Directors are responsible for contribung sound
judgement and objecvity to the Board’s deliberaons and the decision-
making process. They also provide construcve challenge and oversight,
and monitor the Execuve Directors’ delivery of the Company’s strategy.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
68
Governance Report connued
Governance framework connued
Powers of Directors
The Directors are responsible for the management of the Company.
They
may exercise all powers of the Company, subject to the Arcles
of
Associaon and to any direcons given by the shareholders by
special
resoluon.
Appointment and removal of Directors
The appointment of Directors is governed by the Company’s Arcles of
Associaon, the Companies Act 2006 and other applicable regulaons
and policies. Directors may be elected by shareholders in general
meeng or appointed by the Board of Directors in accordance with
the
provisions of the Arcles of Associaon. All of the then Directors
of
the Company were re-elected at the AGM held on 30 June 2021.
In
accordance with the Code, all Directors rere and may stand for
re-elecon at each AGM.
Leers of appointment for individual Directors are available for
inspecon by shareholders at each AGM and during normal business
hours at the Company’s registered oce. The Arcles of Associaon
provide that in addion to any power to remove Directors conferred by
the Companies Act 2006, the Company may remove any Director from
oce by ordinary resoluon of which special noce has been given.
Board performance evaluaon
Since the 2020 assessment, the Board and management have worked on
areas idened as needing improvement, including devong more me
to long-term strategic issues (such as business strategy in the countries
hardest hit by Covid, and the development of digital nancial services);
key challenges and Company culture post-Covid; further implemenng
the 2019 ‘Secon 172’ plan to engage the Independent Non-Execuve
Directors (‘INEDs’) more with the stakeholders (INEDs have parcipated
in person or remotely in local board meengs at most of the operaons);
and connuously reviewing detailed senior management succession
plans, including at Group level (the key role of Director of Corporate
Development was lled in the autumn of 2021). Further progress has
been made in increasing the resilience of the succession plan for key
leadership posions at both Group and country level.
The Board has recently carried out a self-assessment exercise in respect
of 2021. The procedure followed was that each Board and Commiee
member completed a quesonnaire, adding comments where appropriate,
which was then submied on an anonymised, aggregated basis to each
member of the Board. The Chairman then held discussions with the
other Independent Directors and with the Execuve Directors about the
performance of the Board, the Commiees and the individual Directors.
Overall, the review showed that the Board and its Commiees and
individual Directors have funconed well since the previous Board
assessment in 2020. Key areas highlighted for addional focus include
the need for further development of the Group’s long-term and DFS
strategy; the manner in which progress towards strategic objecves is
presented to the Board; and the desirability of ensuring further diversity
and relevant skills on the Board.
Reappointment of Directors at the 2022 AGM
The Board has conrmed its view that each of the Directors connues
to be eecve and to demonstrate commitment to his or her role.
On the recommendaon of the Nominaon Commiee, the Board will
therefore be recommending that:
• The three Execuve Directors, and the Non-Execuve Directors
Hanny Kemna, Guy Dawson, Salehuddin Ahmed and Gavin Laws
be proposed for reappointment at the AGM.
• Praful Patel shall rere at the AGM.
The Board has determined that the Non-Execuve Directors meet the
independence criteria set out in the Code.
Inducon and professional development
On appointment, all new Directors received a comprehensive and
personalised inducon programme to familiarise them with the Group,
tailored to their specic requirements. The Company also provided
bespoke inducons for the relevant Directors when they were appointed
as a Commiee Chairman. Inducon programmes are tailored to a
Director’s parcular requirements, but would typically include site visits,
one-to-one meengs with Execuve Directors, the Company Secretary
and senior management for the business areas and support funcons
and meengs with the external auditor. Directors also receive guidance
on Directors’ liabilies and responsibilies.
In addion, the Chairman and CEO may agree any specic requirements
as part of each Non-Execuve Director’s regular reviews.
Company Secretary
The Company Secretary is responsible for ensuring that Board
procedures and applicable rules and regulaons are observed and for
advising the Board, through the Chairman or the General Counsel, on all
governance maers. All Directors have direct access to the services and
advice of the Company Secretary, who also acts as secretary to the
Board Commiees.
Conicts of interest
The Arcles of Associaon include provisions giving the Directors
authority to approve conicts of interest and potenal conicts of
interest as permied under the Companies Act.
A procedure has been established whereby actual and potenal conicts
of interest are regularly reviewed and appropriate authorisaon sought
prior to the appointment of any new Director or if a new conict or
potenal conict arises. Directors are regularly reminded that they must
declare, before or at the beginning of the meeng concerned, any maer
on the agenda for the meeng in respect of which they may have a
conict of interest; they will, if necessary, withdraw from the meeng
during the discussion of that item and not parcipate in any decision
relang to it. The decision to authorise a conict of interest can only
be made by non-conicted Directors (eecvely, the Independent
Directors’ Commiee less any of its members who may be connected
with the relevant conict), and in making such a decision the Directors
must act in a way they consider, in good faith, will be most likely to
promote the success of the Company. The Board is sased that this
procedure operated eecvely throughout the year.
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Board of Directors
Execuve Directors
Finance &
Accounts
Investor
Relaons
India Tanzania
Nigeria
Operaons
&
Management
Investment,
Treasury &
Funding
Pakistan
The
Philippines
Uganda
Ghana
HR &
Logiscs
Informaon
Technology
Sri Lanka
Myanmar
Kenya
Sierra
Leone
Rwanda
Risk
Management
Legal &
Compliance
Internal
Audit
Grievance
Migaon
East AfricaSouth Asia
West AfricaSouth East Asia
Zambia
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
69
Board and Commiee eecveness
Annual Board and Commiee evaluaon
See ‘Board performance evaluaon’ on page 68.
Management and operaonal structure
The Group’s operaons are standardised, which allows management’s
authority to be decentralised and delegated (within specied limits)
from the Group’s joint corporate headquarters in Amsterdam (the
Netherlands) and Dhaka (Bangladesh) to each of its micronance
instuons. The Dhaka oce is managed by Aminur Rashid, Execuve
Director, and a team of other seasoned micronance experts who have
previously held senior posions in the industry and have many years of
experse in managing and/or supporng micronance instuons across
Asia and Africa, as well as professionals who previously worked in the
nancial and legal industry.
In addion to supervising the performance of the Group’s local
micronance instuons, execuve management in Dhaka is primarily
responsible for nance and accounts, treasury, compliance, risk
management, audit, tax management, IT, human resource management
and corporate secretarial funcons for the Group. The Amsterdam
oce is the base of Dirk Brouwer, CEO, and other senior managers, and
provides specialised accounng, nance, legal, corporate and compliance
funcons along with investment, treasury, (internaonal) tax structuring,
funding, investor relaons, FX management, and the management of
business development projects. The oces of Amsterdam and Dhaka
are funconally integrated.
The chart above sets out a simplied overview of the Group’s
management structure as well as the Group’s operang structure, which
is based on geographical proximity and associated cultural similaries
and is, therefore, segmented into four regions: South Asia, South East
Asia, East Africa and West Africa.
The Group’s micronance instuons operate a total of 2,044 branches
across 13 countries in South Asia, South East Asia, East Africa and West
Africa. Limited administrave layers exist throughout each in-country
branch network, which promotes the acve parcipaon of all sta,
quick and autonomous decision-making capacity, and the ecient
deployment and monitoring of loans. Each of the Group’s micronance
instuons has its own board of Directors (each an ‘MFI Board’) which,
in most countries, includes a number of Independent Directors, as well
as members of the Company’s senior management, including the Chief
Execuve Ocer, Execuve Director, Operaons, Chief Operang
Ocer and Senior Vice President, Investments, Treasury and Risk
Management. The remaining Independent Directors oen have
extensive experience in the micronance industry or at central banks.
Local management and operaonal structure
Each of the Group’s micronance instuons also has a country-level
head oce from which the Managing Director works and manages
the micronance instuon, reporng to the local MFI Board and
the Group’s internaonal corporate headquarters. Reporng to the
Managing Director, the head of operaons is also located in the country
head oce and oversees the micronance instuon’s mid-level
management. The country head oce also includes common head
oce funcons including nance and accounts, internal audit, legal
and compliance, informaon technology, human resources and risk
management. Internal Audit reports directly to the local MFI Board
as well as funconally to the Head of Group Internal Audit.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
70
Governance Report connued
Governance framework connued
Each country’s head oce also includes a Fraud and Misappropriaon
Prevenon Unit, which invesgates unusual branch acvity and/or client
complaints through unannounced branch inspecons, and reports to the
Managing Director of the micronance instuon as well as to senior
management in the internaonal corporate headquarters.
The eld sta of each micronance instuon comprises mid-level
management and branch sta. The mid-level managers of each
micronance instuon travel across their respecve branch networks
and perform their supervisory funcons in the branch oces, as they
generally do not have separate oces. Mid-level management generally
comprises district managers, regional managers and area managers,
with some larger micronance instuons having an assistant district
manager or a deputy head of operaons. Each level of mid-level
management is responsible for reporng to its manager and ulmately
to the Managing Director at the country head oce, as well as for
inspecng branches, including aending a specied number of client
group meengs to ensure that operaons are eecvely carried out.
At client group meengs, mid-level management also receives client
feedback and follows up any prior client complaints. Each branch is
normally staed by a branch manager, an assistant branch manager,
loan ocers and supporng sta members.
Substanal shareholdings
The table below sets out details of the interests in vong rights of 3%
or more noed to the Company as at 31 December 2021 under the
provisions of the FCA’s Disclosure Guidance and Transparency Rules.
Informaon provided by the Company pursuant to the Disclosure
Guidance and Transparency Rules is publicly available via the regulatory
informaon services and on the Company’s website.
Name of Director Number of shares % holding
Dirk Brouwer
1
20,266,146 20.3%
1 Dirk Brouwer holds his interest in the Company via CMIMC (a company under his
ulmate control), which in turn holds its interest in the Company via Catalyst
Micronance Investors 30.41% and Catalyst Connuity 16.89%. Catalyst
Micronance Investors and Catalyst Connuity own 47.30% in total, each company
(ulmately) controlled by Dirk Brouwer.
The above reects shareholding as of 31 December 2021. Substanal
shareholders do not have dierent vong rights from other shareholders.
Engagement with shareholders
The Group has an investor relaons (‘IR’) programme to ensure that
current and potenal shareholders, as well as nancial analysts, are kept
informed of the Group’s performance and have appropriate access to
management to understand the Company’s business and strategy.
The Board believes it is important to maintain open and construcve
relaonships with all shareholders. The Group’s IR team, including the
Head of IR, reports directly to the CEO and is responsible for managing
a structured programme of meengs, calls and presentaons around
the main events in the nancial reporng calendar, as well as throughout
the year. The team regularly seeks investor feedback, directly and via
the Group’s corporate brokers, which is communicated to the Board
and management. The CEO and the Head of IR, accompanied by the
Execuve Director, Operaons and the CFO, speak to, or meet with, the
Group’s major instuonal shareholders on a regular basis. In addion,
the Chairman is available to meet or speak to major instuonal
shareholders to discuss maers such as strategy, corporate governance
and succession planning. The Senior Independent Director is available
for shareholders to consult in the event that they have concerns that
contact with the Chairman or the CEO has failed to resolve, or where
such contact would be inappropriate. Separately, the Independent
Directors are available should shareholders wish to discuss any concerns
they may have.
Through the Head of IR, the Board is regularly updated on the status of
the IR programme. An IR report, summarising share price performance,
share register composion and feedback from any investor meengs, is
produced for Board meengs.
Relevant presentaons, together with all results announcements, Annual
Reports, regulatory news announcements and other relevant documents,
are available on the Investors secon of the Company’s website at
asa-internaonal.com/investors.
Annual General Meeng
The Board regards the Company’s AGM as an important opportunity for
shareholders to discuss the Group and its performance directly with the
Board. In normal years all shareholders have the opportunity to raise
quesons with the Board at the AGM, either in person or by subming
wrien quesons in advance, and the Chairmen of all of the Board
Commiees and the other Directors aend the meeng. In 2021,
however, other arrangements were made because of the impact of
Covid. Only the Chairman of the Board and the Company Secretary
were present in order to secure a quorum, and vong was conducted
by means of a poll of all proxy votes received.
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
71
Audit and Risk Commiee report
This report sets out the principal
responsibilies of the Audit and
Risk Commiee, its membership
and meengs as well as our key
acvies during the year.
Gavin Laws
Chairman of the Audit and Risk Commiee
Chairman’s overview
As Chair of the Audit and Risk Commiee, I am pleased to present the
Commiee’s report for the nancial year ended 31 December 2021.
The Commiee spent substanal me in evaluang the connuing
eect of the Covid outbreak, especially the second wave of Covid in
India and the Philippines on expected credit losses, the impact of
regulatory changes on the operang environment, and other related
accounng judgements and disclosures. The Commiee also closely
monitored health and safety measures taken, collecon eciency and
the increase in the PAR>30 rate, especially with respect to India, Uganda,
Sri Lanka and the Philippines.
This report provides an insight into the funconing of the Commiee
and the acvies undertaken by it, including an overview of the principal
topics covered at various meengs of the Commiee. The Commiee
apporons its me between periodic review of key present and future
risks to the Group and close scruny of the nancial reporng and
internal controls of the Company.
The majority of the Commiee’s me has been spent on our principal
roles and responsibilies, which are to:
• Monitor the integrity of the Company’s nancial statements
and external nancial reporng.
• Review the eecveness of the Group’s internal controls.
• Monitor and review the acvies and performance of both
the Internal Audit funcon and external audit process.
• Monitor the adequacy and eecveness of the risk
management framework.
• Assess present and emerging risks and help to focus the
Board’s aenon on key risks, especially in view of Covid.
• Consider key accounng maers and areas of judgement and
changes.
• Discuss specic maers tabled at the request of the Commiee
to allow the Commiee to zoom in on topics of interest or concern.
The full terms of reference of the Commiee are available on the
Company’s website (under Investors/Corporate Governance/Audit
and Risk Commiee).
In 2021, the Commiee connued to focus on the internal controls
systems and processes and the challenges faced due to the Covid crisis
and on monitoring the Company’s response to those challenges. In
parcular, the Commiee reviewed the provisioning for expected credit
losses and the calculaon of modicaon losses in line with IFRS 9 to
adjust for loan modicaons due to the lockdowns and moratoriums
provided to clients, which resulted in loan extensions. The Commiee
considered accounng judgements and implicaons relang to the
modicaon of nancial instruments and interest income, arising from
the implementaon of payment deferrals/holidays. During the year, the
Commiee received regular updates from management on the addional
guidance and disclosures made in relaon to the Covid outbreak.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
72
The Commiee connued to work with management to further improve
the risk-based internal audit process as well as the reporng of risk. The
Commiee will connue to focus its aenon on the key responsibilies
listed above, and in parcular on oversight of Internal Audit and the risk
control framework, signicant accounng judgements, review of the
external audit scope and fees, review of an-money laundering and
an-bribery policies and whistleblowing arrangements, consideraon of
the requirements of the UK Corporate Governance Code in relaon to
stakeholder engagement, long-term viability, risk and going concern. In
parcular, the Commiee will focus on further development of the
Internal Audit funcon, including IT audits as well as the development,
use and security of new and future IT strategies and systems.
Audit focus areas in the 2021 nancial year
Since 1 January 2021, the Commiee has:
• Reviewed the 2020 nancial statements and 2021 interim nancial
statements and the auditor’s ndings in relaon to them, as well as
the responses by management to the recommendaons of the auditor.
• Considered the EY Audit Planning Report for the 2021 year-end audit.
• Considered the development of the accounts consolidaon soware.
• Reviewed and considered PAR>30 and ageing buckets.
• Reviewed the accounng impact of the provisioning for expected
credit losses and the impact to income recorded due to contract
modicaon under IFRS 9.
• Considered the impact of Covid on the adopon of the going concern
assumpon and resulng disclosures to the nancial statements.
• Reviewed Covid reports and impact on sta and retenon.
• Reviewed the budgets and projecons and related going concern
and viability statements.
• Considered the plans and reports from the internal auditor as well
as the quality and resources (and budget) available to Internal Audit.
• Reviewed the IT strategy and IT policies of the Company.
• Reviewed stang and recruitment arrangements for the IT,
Internal Audit and FMPU departments.
• Reviewed the risk framework and made recommendaons.
• Reviewed KPIs and the risk appete.
• Reviewed the training plan for employees.
• Reviewed key legal and regulatory concerns.
• Considered the compliance framework (including whistleblowing
arrangements) and compliance reports.
• Reviewed whistleblowing reports and legal reports with
regulatory updates.
• Reviewed treasury reports, including funding, liquidity and
capital requirements of the Group as well as the compliance with
loan covenants.
• Reviewed the performance of the current auditor of the Company.
• Reviewed the contents of nancial statement to ensure it is fair,
balanced and understandable to all readers.
Audit priories for 2022
Key audit priories for the coming year include:
• Reviewing the results announcement for 2022 and recommending
the full-year results to the Board.
• Reviewing signicant accounng judgements as well as going
concern, viability statement and liquidity risks.
• Reviewing non-audit services and other audit policies and auditor
independence rules.
• Monitoring the acons taken by management to combat the
connuing challenges posed to the business by Covid.
• Looking into the adequacy and security of the Company’s
AML policy and required whistleblowing arrangements.
• Reviewing the value statement of the Company and focusing
on engagement with shareholders and the workforce.
• Reviewing the half-yearly report from the external auditor of the
Company as well as the 2022 report and management leer by
the auditor.
• Reviewing the management representaon leer from the
external auditor.
• Internal Audit funcon, budget, stang and internal audit approach.
• Reviewing the audit plan, auditor objecvity and independence as
well as auditor remuneraon.
• New requirements relang to energy usage and greenhouse
gas emissions and the TCFD requirements.
• FBU assessment.
• New requirements relang to ESEF reporng.
Membership and meengs
The Audit and Risk Commiee is chaired by me, and the other members
during 2021 were Salehuddin Ahmed and Hanny Kemna, both of whom
are Independent Directors.
All of the Independent Directors menoned above (except Salehuddin
Ahmed unl 2021) were formally appointed to the Board during the
Board meeng of the Company held on 28 June 2018 and reappointed
at the AGMs held in 2020 and 2021. The qualicaons of each of the
Board members are outlined in the biographies on page 60. The Board
considers that the current members of the Audit and Risk Commiee
have sucient skills, qualicaons and experience to discharge their
dues in accordance with the Commiee’s terms of reference.
In 2021 the Commiee met on six occasions. Full details of aendance
by the Non-Execuve Directors at these meengs are set out in the
table on page 62. In addion to the members of the Commiee, standing
invitaons to aend meengs are extended to the CEO, CFO, the Chief
Accountant, Senior Vice President Investments, Treasury and Risk
Management, the General Counsel, representaves of the external
auditor, the Head of Compliance and the Head of Group Internal Audit.
All aend our Commiee meengs as a maer of course and have
supported and informed the Commiee’s discussions. Invitaons to
aend are extended to other members of management as required,
so that they can brief the Commiee on specic issues under review.
The external auditor, Ernst & Young LLP (‘EY’), aends each meeng,
and I have regular contact with the lead audit partner throughout the
year. The Commiee met with both internal and external auditors
privately (i.e. without members of management present) at meengs
during the year.
Since the Commiee has responsibility for both audit and risk
monitoring, this report will address the acvies of both funcons
during the nancial year.
Audit overview
As part of its audit funcon, the Audit and Risk Commiee is responsible
for monitoring the integrity of the Company’s nancial statements and
reviewing and reporng to the Board on signicant nancial reporng
issues and judgements. The Commiee also considers whether the
Company has adopted appropriate accounng policies and made
appropriate esmates and judgements aer taking into account the
views of the auditors.
Other than the above, the Commiee monitors:
• Compliance with accounng standards and legal and
regulatory requirements.
• The reporng of related party transacons.
• The basis on which the Group is considered to be a going concern.
• Any material misstatements in the accounts that are reported by
the external auditor.
• Taxaon maers.
Commiee Report connued
Audit and Risk Commiee report connued
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Financial
Statements
Additional
Information
Governance
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Strategic
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73
Commiee eecveness
The Commiee considers that it has access to sucient resources to
enable it to carry out its dues and has connued to perform eecvely.
A formal evaluaon of the Commiee’s performance took place as part
of the wider Board evaluaon during 2021 and will be undertaken again
at the end of 2022. As far as the Commiee was concerned, no areas
were idened as needing improvement.
Audit of 2021 nancial year
Internaonal accounng standards
There were no signicant changes in the IFRS reporng standards
applicable for the 2021 nancial statements.
Reporng by the external auditor
The Commiee received detailed reporng from the external auditor
in respect of the nal and half-yearly results. The Commiee and
the external auditor discussed the key areas of focus including the
risk drivers, the signicant risks being fraud in revenue recognion,
expected credit loss provisions, and going concern, which would
include consideraon of the potenal impact on the Group of any failure
of the Indian business. Other risks idened had not been classied as
signicant and included rerement benet liability and deferred tax.
The Commiee specically spoke to the external auditor about going
concern and existence of material uncertainty, revenue recognion and
expected credit loss provisions. The external auditor reported that the
signicant audit risks in relaon to income recognion and expected loss
provision had been reported at each stage, and it had not found any
material or reportable dierences or fraud aer extensive revenue tesng.
The Commiee also reviewed the EY external audit ndings and EY
Control Observaons & Recommendaons Report and the management
response to each observaon made by EY. The Commiee had a
discussion with management on the observaons including balance
sheet and income statement aestaon, nancial crime policies and
procedures and capture and controlling accounng implicaons.
The Commiee also discussed the lisng requirements to which the
Company is subject, UK Corporate Governance Rules, and adherence
to planning, melines and achievable due dates as a listed company. EY
kept the Commiee updated on developments in corporate governance
regulaon and pracces that were expected to arise over the next
few years, which may require the Company to produce new types of
documentaon, parcularly with regard to aestaon of internal controls.
Taking into account the external auditor’s assessment of risk, but also
using our own knowledge of the Group, we reviewed and challenged
where necessary the acons, esmates and judgements of management
in relaon to the preparaon of the nancial statements.
EY discussed the impact from the Covid outbreak on the execuon and
delivery of the audit and the plans to deliver the audit through remote
working and migang acons being taken. There was also discussion on
addional relevant work in relaon to signicant accounng judgements,
such as expected credit losses, and the impact of the Covid outbreak on
going concern and viability.
As part of its role in assessing the integrity of the Group’s external
reporng, the Commiee has connued to pay parcular aenon to
the key areas of management judgement underpinning the nancial
statements. The Commiee reviewed the signicant accounng
judgements made during the year, the risks to which the Company was
exposed and the systems in place to migate or manage them and the
overall system of internal controls within the Company.
As in 2020, specic emphasis was placed on the impact of Covid. The
Commiee devoted signicant me to the review and challenge of
management’s approach and analysis of IFRS 9 expected credit losses in
light of the Covid outbreak and other geopolical events. The Group’s
external auditor regularly shared its views with the Commiee on the
reasonableness of management assumpons. The Commiee also
discussed in detail measures taken, including health and safety measures,
maintaining an acve dialogue with clients and nancial measures such
as maximising liquidity and reducing operaonal costs. The Commiee
ensured it was at all mes kept up to date with the Government and
regulatory developments.
The Commiee reviewed the analysis of the going concern situaon and
the waivers that had been received in respect of the Group’s covenant
breaches on its outstanding borrowings, and concluded that it connued
to be appropriate to prepare accounts on a going concern basis.
The Commiee noted that all key external audit ndings in previous
years and H1 2021 ndings had been considered by management and
targets set for compleon of all the ndings which shall connue to be
monitored by the Commiee. Some observaons have been resolved,
which include improvement in treasury funcon reporng to Finance in
terms of decision making when entering into funding arrangements, and
IT audit by Internal Audit, while others such as seng up of an osite
disaster recovery site updated on a real-me basis, development of
consolidaon soware, balance sheet and income statement aestaon
are in progress and being monitored.
The Group’s liquidity remained strong throughout the Covid crisis with
unrestricted cash and cash equivalents remaining high at approximately
USD 91 million at year end 2021. The Company secured approximately
USD 191 million of new loans from local and internaonal lenders in 2021.
External audit
The Commiee assessed the external audit report and audit plan for
2021. EY stated that the scope of the audit would be largely unchanged
from 2020. EY planned to visit several countries in the course of the
audit and they visited a few countries.
The auditor idened three signicant risks for the 2021 audit:
• Risks in relaon to going concern as a result of the Covid pandemic
which would include consideraon of the potenal impact on the
failure of the Indian business.
• Valuaon of expected credit loss provision.
• The risk of fraud in revenue recognion through the incorrect
recording of revenue arising from cous loans and advances
to customers.
Other key areas of focus include securisaon accounng in India
which also included a direct assignment without risks and was o book
compared to earlier securisaon transacons, valuaon of forward and
swap contracts, foreign exchange accounng, compliance with laws and
regulaons, rerement benet liability, deferred tax and management
override of internal controls.
The Commiee concluded that EY remains independent and that its
audit is eecve. EY conrmed that it had carefully monitored the
provision of non-audit services to the Board. Ernst & Young LLP (EY) has
acted as Group’s external audit rm since appointment at the Annual
General Meeng in (add date). Group’s policy for auditor rotaon and
audit tender follows regulatory requirements, and the audit rm will be
required to be rotated aer no more than 20 years, with an audit tender
to tender to held aer no more than 10 years.
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Annual Report and Accounts 2021
74
Other nancial reporng and nancial update
Interim announcement
The Commiee reviewed the dra announcement and interim nancial
statements.
Financial update
The Commiee reviewed nancial updates from management and
discussed various items including increase in PAR>30 rao, debt-equity
raos, liquidity, cost of funding, impact of forex on cost base, Group
guarantees, other operang income, currency depreciaon in Asian
countries, nancial metable, preparaons for half-year review and
year-end audit, cost to income rao and increase in costs, and market
expectaons. The Commiee requested and received presentaons
from management explaining the key issues raised by analysts, investors
and press.
Policy oversight and review
Whistleblowing
The Commiee and the Group place a high priority on all employees
understanding the process for reporng concerns, so that they all feel
able to speak out when appropriate. In respect of all operang enes,
all concerns shall be reported directly to the head of the Audit and Risk
Commiee (‘ARC’) of that country and in respect of all headquarters/
holding company sta (in Dhaka and the Netherlands) any instances shall
be directed to me as the Chair of the Group Audit and Risk Commiee.
The Chair shall pass the concern(s) to the Head of Internal Audit.
Other policies
Emphasis was placed on regular review by the Board of policies such
as an-bribery and corrupon, and an-money laundering, and
implementaon of the Transfer Pricing Policy. The Commiee noted that
all key manuals are in place and requested guidance from the Compliance
Ocer on the review and approval process. The Compliance Ocer
prepared a systemac compliance framework, idenfying gaps in the
exisng framework, and has been instructed to further develop all
manuals and carry out training on priority. The Commiee also
emphasised that there should be a zero tolerance policy for cases of
sexual or racial harassment.
Stakeholder engagement
The Commiee considered an acon plan to engage with stakeholders.
As part of this it was planned that the Board will appoint one INED per
country. They shall engage with local management and sta, including
parcipang in client events and local board meengs. INEDs will also
join the Group-wide management meeng, receive annual sta and
client surveys, and will be oered the opportunity to meet regulators
and lenders.
In 2021 each Non-Execuve Director joined the following board
meengs through online meengs:
• Mr Guy Dawson (Myanmar & Nigeria)
• Mr Gavin Laws (Ghana & Uganda)
• Ms Hanny Kemna (Pakistan & Sri Lanka)
• Mr Salehuddin Ahmed (Philippines & Tanzania)
• Mr Praful Patel (India & Kenya)
The Chair of the ARC also has a regular conversaon with the Group
Head of Internal Audit, and the Commiee meets members of the senior
management team who aend every Audit and Risk Commiee meeng.
Internal Audit
During the year, the Commiee held several discussions with the Head
of Internal Audit to ensure that they had enough resources and, whilst
travel restricons were in place, Internal Audit would sll be able to
connue its work across the Group and regular reports connue to be
delivered to the Commiee. The Internal Audit team was provided online
access to the data of subsidiaries, although all informaon required for
auding transacons was not online and the Commiee noted that
internal audits planned for 2021 had mostly been completed on
schedule. It was also decided that internal audit soware would be
developed internally.
The internal audit plans and budget are also approved by the Commiee.
At each meeng the Commiee receives a report from the Head of
Group Internal Audit summarising audits completed as well as monitoring
progress on agreed acons from previous audits.
Internal Audit also focused on health and safety issues, compliance
maers and IT requirements. The Commiee worked to ensure that the
management would respond to issues raised by Internal Audit within
a specied me. The Commiee had discussions with management
to ensure adequate stang of the Internal Audit department. The
Commiee connues to keep the level of resources of the Internal Audit
team under review and holds meengs with the Head of Group Internal
Audit from me to me.
IT organisaon and strategy
The Commiee also spent considerable me on the IT organisaon
and the IT strategy. The Commiee connued to track progress on
implementaon of real-me AMBS and required the Company to
prepare backup plans in case of cyber-aacks as well as carry out
vulnerability assessment and penetraon tesng. The Commiee also
monitored implementaon of the eecve interest rate loans and
lockdown interest across countries and the changes to AMBS in relaon
thereto. Operaons, Finance and IT worked closely together to dene
the parameters and implement the soluon and we connue to improve
the development process and recently further strengthened
management and coordinaon between departments.
The Commiee also monitored the progress of the digital nance
strategy of the Group, including the appointment of Barney de Jongh
as head of nancial services, and the development of the real-me
smartphone or mobile app and its pilong in some countries, as well as
the acquision of a core banking soware system.
The Commiee also discussed the recommendaons by the external
auditor relang to IT. Certain improvements were introduced as a result,
including the separaon of access and administraon rights and regular
cyber penetraon tesng.
Risk management overview
As part of its risk management funcon, one of the Audit and Risk
Commiee’s principal roles and responsibilies is to support the Board
in its oversight of risk management across the Group. The idencaon,
management and migaon of risk are fundamental to the success of
the Group.
The ASA Internaonal Model has proved to be robust in managing
operaonal risk, but we aim to connue to retain and recruit the skills
and talents needed to meet the challenges we face in our various
operang markets and connuously review the adequacy of procedures
and operaonal controls.
Commiee Report connued
Audit and Risk Commiee report connued
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Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
75
The reporng based on the three lines of defence model allows us
to ensure that emerging risks are idened and debated and that
management’s plans for risk migaon are well understood and
appropriately resourced. The Commiee requires management to
focus, as far as its reports to the Commiee and Board are concerned,
on presenng key risks. Management provides risk reports to the
Commiee on a quarterly basis. These reports contain a summary of the
key risks and management’s risk assessment along with any migaon
acons where relevant. Management also provides a full summary of its
risk appete in relaon to its key performance indicators.
This risk reporng process as well as the regular reviews by the
Commiee were in place and funconing eecvely in 2021.
Looking ahead to 2022: risk priories
Key risk priories for the coming year include:
• Eecve management of any further impact of Covid and stabilising
and improving size and quality of loan porolio.
• Monitor the impact of the Covid outbreak on the Group’s customer
base as well as on the capital and liquidity risk, credit risk, market risk,
people and operaonal risk for the Group.
• Eecve management and reporng of key risks, specically
foreign exchange exposure, regulatory risks, as well as any
other material developing concerns.
• Advancement and connuous assessment of the Group’s IT
infrastructure including deployment of the Temenos core banking
system in selected markets and pilot digital nancial services
as well as improve AMBS to meet new requirements.
• Improving Internal Audit to allow for more eecve risk-based
internal audit reviews.
• Annual review of the an-money laundering and an-bribery and
corrupon policies and procedures and increase in awareness by
training the sta with respect to the same.
• Implementaon and monitoring of the Health and Safety Policy.
• Consideraon of the requirements of the UK Corporate Governance
Code in relaon to long-term viability, risk and going concern as well
as further implemenng measures for stakeholder engagement by
the Board.
• Monitoring the acons taken by management to combat the
challenges posed on the business by Covid.
Risk management: acvity in nancial year 2021
The Risk funcon connued to evolve in 2021. We connue to work with
management to ensure our three lines of defence model is fully embedded
across our Group and that the governance and reporng structures
connue to provide ever more eecve oversight of our risk management.
These acons have connued to improve the ow of management
informaon to the Commiee, increasing the eecveness of its challenge
and oversight and enhancing visibility on risk and compliance issues
idened at all levels across the Group. Apart from the health and safety
risks, the Covid crisis has been disrupve for the second year to our
operaons in some countries due to the imposion of lockdowns, curfews,
restricons on movement and congregaon of people, and the general
fear and uncertainty caused by the pandemic, which adversely aected
the business acvies of our clients in the countries in which we operate.
The situaon improved towards the end of the year when restricons
were lied in most of the operang countries.
The Commiee carefully assessed the impact on porolio quality,
collecon eciency and PAR>30 especially in India, the Philippines,
Myanmar and Uganda. The Commiee maintained its focus on the Group’s
policies, programmes and pracces for strengthening and priorising our
ability to test, detect, resolve and recover from unforeseen operaonal
disrupons in our key markets.
The Commiee reviewed the risk management reports presented by
management and the acons being taken to manage or migate the key
risks. The Audit and Risk Commiee was acvely involved in improving
risk reporng by management. The Commiee noted that credit and
regulatory risks were both high and also discussed whether the risk of
inaon should be considered relevant to the Group. The Commiee
reviewed risks arising following the implementaon of the declining
balance method of interest calculaon in various countries, and discussed
reputaonal risk arising from cases of client dissasfacon about the
communicaon and its resoluon, which was considered to be not
currently signicant.
Health and safety, liquidity and IT risks were standing items for discussion
at meengs held in 2021 and will connue to be discussed in 2022.
Assessment of emerging risks (required under the 2018 Code) will be a
standing agenda item for the Commiee’s discussion in 2022.
Our focus on strengthening the IT systems increased during 2021 with
the acquision of Temenos, which will be rolled out over the coming
year in selected markets in order to improve the deposit-taking capacity
of the Company, as well as pilot digital nancial services in Ghana. The
Commiee also recognises the need for strong cyber defences to protect
our systems and customer data and to prepare the Company for a digital
nancial services environment. There has been a further investment in
the HR capacity of the IT team, including the appointments of a head of
nancial services and a senior IT manager to assist in the inial
implementaon of Temenos as planned for Pakistan (including the loans
and savings model) and the loan module for Ghana to support the digital
nancial services pilot project. The Company will connue to run
its current AMBS systems in all but the above two markets. Over me,
in countries where we have deposit-taking licences, Temenos will be
deployed. This is expected to be a mul-year project.
The IT technology strategy is constantly under review by the Board and
this Commiee in order to ensure that we are keeping pace with, and
responding to, the latest industry developments, especially in digital
nance. IT capability will connue to be assessed in the context of risk
appete, being part of the Company’s operaonal risk. The Commiee
considered the eecveness of the internal control systems and believes
that they are adequate. The Commiee also discussed the preparedness
of the Company to deal with cyber-aacks and discussed with
management the transional risks connected with AMBS being moved
onto a real-me basis.
We connue to encourage the Company to engage acvely with
regulators and industry bodies to ensure that our compliance framework
remains appropriate and relevant for all of our businesses. The Legal and
Compliance team works closely with colleagues in dierent countries,
providing regulatory advice, as well as shaping policies, delivering training
and conducng assurance reviews. The Group Compliance Ocer was
also appointed as the dedicated an-money laundering ocer.
Commiee roles and responsibilies
The Commiee keeps under review the adequacy and eecveness of
the Company’s internal nancial controls and risk management systems
and the Group’s procedures for idenfying, assessing and managing risk.
Commiee eecveness
As Commiee Chair, I meet frequently with senior management of
the Group around quarterly Board meengs to discuss the business
environment and to gather their views regarding emerging risks, business
performance and the compeve environment. The Commiee
considers that it has access to sucient resources to enable it to carry
out its dues and has connued to perform eecvely. We reviewed
the Commiee’s eecveness as part of the annual Board performance
evaluaon in 2021, and a further evaluaon will be carried out in
late 2022.
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76
Monitoring response to Covid
During the year the Commiee connued to discuss and review
conngency plans, acon plans and other measures taken by the
Company in response to the Covid pandemic and the resulng
lockdowns and restricons imposed in various operang countries.
The Commiee specically directed the Company to ensure the safety
of sta and provide all necessary safety equipment.
The Commiee was regularly updated and kept abreast of various
governments’ rules and guidelines on Covid as the situaon developed
through the year. The Commiee constantly monitored the porolio
quality including the PAR>30 and expected credit loss provisioning for
the Group and the payment relief moratoriums granted to clients.
Other maers
Other, more roune, maers discussed included:
• Finalisaon of Group table of authority.
• Improvement in treasury funcon reporng to Finance in terms
of decision making when entering into funding arrangements.
• The resourcing of the IT, Internal Audit, accounts and nance teams
are constantly under review by the Board and this Commiee to
ensure that we are keeping pace with, and responding to, the
latest industry developments.
• The Commiee requested and received reports on debt covenant
monitoring in respect of loans by various Group enes.
• Directors’ and Ocers’ liability insurance cover was reviewed
by the Commiee.
• Legal and regulatory update reports were rounely received
and reviewed by the Commiee.
Going concern
The nancial statements of the Group have been prepared on a going
concern basis i.e. no adjustments have been made to the numbers that
indicates that the company is not a going concern. It should be noted
that in the 2020 Annual Report and Accounts, approved on 31 May
2021, the Senior Management and Directors concluded that the
potenal impact of the Covid pandemic and the uncertainty over
possible migang acons represented a material uncertainty that may
have cast signicant doubt over the Group’s ability to connue as a going
concern. In assessing going concern covering 13 months from the date of
the approval of the annual consolidated nancial statements and given
the nancial impact of the spread of Covid, which connues to impact
on certain markets of the Group, management has analysed the Group’s
nancial posion and updated its budget and projecons for the period
up to the end of May 2023 (the ‘Assessment Period’). With the amount of
covenant breaches without waivers projected at signing, the conclusion
of the assessment remains consistent with that of the prior year – the
Senior Management and the Directors have concluded that there is a
material uncertainty that may cast signicant doubt over the Group’s
ability to connue as a going concern.
The Group has updated its detailed nancial model for its budget and
projecons (the ‘Projecons’) in line with current market condions.
Management used the actual numbers up to December 2021 and
updated the operang projecons for the Assessment Period. These
Projecons are based on a detailed set of key operang and nancial
assumpons, including the minimum required cash balances, capital
and debt funding plan per operang country, post-pandemic economic
condions of the countries, and management’s esmaon of increased
credit and funding risks in addion to a conservave view of reduced
demand for new micronance loans where applicable.
Management has also prepared a conservave projecon for India and
Myanmar for the Assessment Period as these countries connued to
be impacted by operang challenges on account of Covid and polical
instability. Based on the projecon, the Group expects the enes will
incur losses during the going concern period but they will be able to
pay its maturing debt obligaons and comply with regulatory raos
and or requirements. The impact for such downside case scenario
extrapolated in the Group’s operang results and cash balances will not
be signicant. Summary of the base case and the impact of the downside
is shown below:
In the worst case, if India and/or Myanmar fail to remain a going concern,
this will not impact the Group’s sustainability as (i) these two enes are
not the major prot-generang operaons of the Group, (ii) ASA
Internaonal did not provide any parent guarantees, and (iii) the
exposure of the Group via intercompany loans is very low and last but
not least (iv) the level of equity is currently nominal.
As of 31 December 2021, credit lines with breached covenants that
did not have waivers amounted to USD 111 million. Of which waivers
for USD 36.7 million have been subsequently received. Other lenders
have conrmed that they are willing to provide waivers, will do so in
case of actual breaches and subject to formal internal credit commiee
approvals. However, the majority of these waivers are for India where
a vast poron of the lenders are local and are awaing the statutory
accounng period (31 March 2022) audited results. Also, the total
outstanding debt at the holding level (ASA Internaonal Holding and
ASAI Internaonal NV combined) is USD 70 million which is part of the
USD 314 million consolidated debt for the Group. Most of the covenants
under the USD 70 million loan agreements are based on consolidated
Group results. Waivers have been obtained by the Group in respect
of these covenant breaches. These are on all loans to the holding
companies from internaonal funders up to December 2021 but some
of these waivers do not cover the enre going concern period i.e. up to
May 2023. The Group has a history of negoang covenant waivers and
recovering from natural disasters and debt relief programs but the nature
of the pandemic and its aer eects makes it dicult to assess the likely
scale of debt covenant breaches and whether the waivers necessary
to avoid the immediate repayment of debt will be forthcoming. The
Directors have jusably concluded that these covenant breaches
represent a material uncertainty that may cast signicant doubt over the
Group’s ability to connue as a going concern. It is to be noted though,
none of our lenders have called in their debts in the past two years
during the pandemic.
The Group also considered the impact of climate change and related
risks in the budget make-up, especially in terms of assessing the ECL
provisions. As at 31 December 2021, the Group considers its present
nancial exposure to climate-related risks to be low, and accordingly,
no addional impact of such is taken for budgeng purposes. If and
when the Board chooses to reduce or balance greenhouse gas
emissions, there will be an associated cost impact and budgets will be
updated accordingly.
Nevertheless, having assessed the projecons, downtrend analysis, and
migaons described above, the Senior Management and Directors have
a reasonable expectaon that the Group has adequate resources
to connue in operaonal existence for the Going Concern assessment
period being the 13 months from the date of approval of the 2021
nancial statements.
Commiee Report connued
Audit and Risk Commiee report connued
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Financial
Statements
Additional
Information
Governance
Report
Strategic
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77
Viability statement
During the year, the ARC has considered a wide range of informaon
relang to present and future projecons of protability, liquidity,
moratoriums and operang costs. These consideraons include stressed
scenarios that reect the uncertainty that the global Covid outbreak
has had on the Company’s operaons, as well as considering potenal
impacts from other top and emerging risks, and the related impact on
protability, capital and liquidity. In accordance with the UK Corporate
Governance Code, the Directors carried out a robust assessment of the
principal risks of the Group. In accordance with provision Provision 31
of the UK Corporate Governance Code, the Board conrms that it has a
reasonable expectaon that the Group will connue to operate and meet
its liabilies, as they fall due, for the three-year period up to 2024. The
three year period has been chosen since the majority of the Group’s third
party debt shall mature within the said period.
The Directors’ assessment has been made with reference to:
• The Group’s current posion and prospects – please see the Financial
review on pages 34 to 45.
• The Group’s business model and strategy – please see Our
sustainable growth, Business model and Key performance indicators
on pages 10 to 11, 8 to 9 and 48 to 49.
• The Group’s measures taken following the spread of Covid on pages
18 and 24, 26 and 51.
• The Group’s recent cash posion including access to funding from
local and internaonal sources on page 34.
• The Board’s risk appete, and the robust assessment of the Group’s
principal risks and how these are managed on pages 50 to 56.
• The material uncertainty in relaon to going concern as discussed
above and further detailed in note 2.1 in the nancial statements.
• Risk management approach on pages 50 and 51.
Finally, the Directors reviewed the viability scenarios including the
downside scenario as well as the Group’s strategy and ve-year business
plan on an annual basis. The viability Scenarios sets forth the Group’s
monthly projecons of protability, cash ows, capital requirements and
resources and other key nancial and regulatory raos for the period
unl December 2023 and annual projecons for the period 2024-2026.
Gavin Laws
Chairman of the Audit and Risk Commiee
29 April 2022
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Annual Report and Accounts 2021
78
Nominaon Commiee report
This is the fourth annual report on
the acvies of the Nominaon
Commiee following the lisng of
the Company.
Guy Dawson
Chairman of the Nominaon Commiee
The Commiee has an acve role in overseeing talent management
and succession planning for the Group, and will ensure that appropriate
acvies and iniaves are connuously undertaken in order to develop
the Group’s talent pipeline. In addion, diversity was and will connue to
be a key area of interest for the Commiee in the next year.
An overview of the Commiee’s roles and responsibilies, and its key
acvies during the year, is set out in the report below.
Key acvies in the 2021 nancial year
During the year the Commiee discussed:
• Board composion and succession, including the recruitment of
a new Non-Execuve Director to succeed Praful Patel who is
rering in 2022 (in progress at the year end).
• Execuve management succession planning, including the
recruitment of a Director of Corporate Development
(completed in October 2021).
• The Board self-assessment.
• The assessment of senior execuves, including their skill-sets,
knowledge and experience to ensure that an appropriate balance
of such qualies has been maintained. The Commiee focused
in parcular on the nance and accounts, and Internal Audit.
• Gender diversity targets, and increasing the proporon of female
sta at the head oce and country levels, including in senior
management at the countries.
Commiee roles and responsibilies
The Commiee’s key roles and responsibilies are:
• Regularly reviewing the size, structure and composion of the Board,
and making recommendaons to the Board with regard to any changes.
• Considering the leadership needs of the Group, including succession
planning for Directors and for senior execuves.
• Idenfying and recommending candidates to ll Board vacancies
when they arise, for the Board’s approval.
• Making recommendaons to the Board concerning the formulaon of
plans for succession for both Execuve and Non-Execuve Directors
and suitable candidates for the roles of Senior Independent Director
and Chairmen of Board Commiees.
• Considering the appointment or rerement of any Directors.
• Reviewing the connued independence of the Non-Execuve
Directors.
• Evaluang the Board’s balance of skills, knowledge, experience
and diversity.
• Preparing a descripon of the role and responsibilies required for
a parcular appointment.
• Being acvely involved in the appointment process for the Chairman.
• Reviewing the results of the annual Board performance evaluaon
process that relate to the composion of the Board.
• Reviewing annually the me commitment required from
Non-Execuve Directors.
The Commiee’s roles and responsibilies are set out in the terms of
reference and are available on the website of the Company.
Membership and meengs
The Nominaon Commiee is chaired by me and the other
members are Praful Patel and Salehuddin Ahmed. The
composion of the Commiee sases the relevant
requirements of the UK Corporate Governance Code
(‘the Code’). Post rerement of Praful Patel at the 2022
AGM, Hanny Kemna will join the Commiee.
Commiee Report connued
Nominaon Commiee report
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Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
79
Other individuals, such as the Group HR Director and external
professional advisers, may be invited to aend all or part of any meeng,
as and when appropriate and necessary. The Commiee met three mes
during the year, in February, September and December 2021. The details
of members’ aendance are set out on page 62.
Changes to the Board
Please refer to page 63.
Directors’ skill-sets
Dirk Brouwer is an experienced investment banker, having held senior
roles in PaineWebber and Merrill Lynch as well as over 14 years of
experience in micronance as Director of ASA Internaonal. Aminur
Rashid has over 30 years of experience in micronance and has held
mulple senior industry posions. Karin Kersten has had 22 years’
experience of banking, most recently of trade and commodity nance at
a senior level in ABN AMRO Bank. The Commiee also considered and
rearmed the skill-sets and experience of the Company’s Non-Execuve
Directors, including their extensive experience within nancial services.
Guy Dawson has extensive experience within the nancial industry,
including as a Non-Execuve Director, as well as Vice-Chairman and
Chairman roles at Nomura Internaonal plc and Merrill Lynch. Praful Patel
has strong operaonal skills and a track record of non-execuve and
independent directorial experience, and has held several senior leadership
roles at the World Bank. Gavin Laws has worked in the banking industry
for over 30 years, including mulple senior execuve roles at Standard
Chartered Bank; he currently sits on a number of UK boards. Hanny
Kemna brings over 20 years of experience as Global Lead Partner of
Operaons and IT at Ernst & Young as well as broad experience as a
supervisory board member of a variety of nancial instuons. Salehuddin
Ahmed is Professor at the Business School of BRAC University, Dhaka,
Bangladesh. Mr Ahmed is also on advisory bodies of several government
and non-government agencies in Bangladesh and a member of the board
of trustees of two universies and a college and was the Governor of the
Bangladesh Bank (Central Bank) between 2005 and 2009. Further
informaon on the background and experience of each of the Directors
can be found in their biographies on pages 58 and 59.
Succession planning – Board and management
The Commiee kept under review the Group’s succession planning at
Board and senior management level, including in the various countries,
and notes that the gaps in the execuve succession plan are steadily
being lled. The Commiee has commenced its search for a new
Non-Execuve Director for appointment during the course of 2022.
The Commiee discussed back-ups for all senior roles including the
posion of CEO, Director, Operaons and Chief Operang Ocer,
which requires a number of well-developed skills, as they are complex
roles. The Commiee recommended that acve steps should be taken
to ensure that mely succession can be implemented.
The Commiee also discussed and approved the appointment of a
Corporate Development Director to support the Company in rolling out
its strategy in the coming years. Karin Kersten, former Global Head
Trade & Commodity Finance at ABN AMRO, joined the Company on
1 October 2021, having worked at ABN AMRO for over 15 years.
The Commiee will connue to monitor progress with the management
succession plan regularly in 2022.
Diversity
The desirability of ethnic and gender diversity connues to be an
important factor in the Commiee’s thinking, and it regularly reviews
gender diversity data in parcular (ethnic diversity presents less of a
challenge, thanks to the Group’s wide geographical spread of operaons).
The Commiee considers that the Board remains diverse, drawing on the
knowledge, skills and experience of Directors from a range of professional
and cultural backgrounds. Currently two of the Company’s eight Directors
are women and we intend, subject to the need for all appointments to be
made on merit against objecve criteria, to bring more female Directors
onto the Board to increase female Board representaon. At the
operaonal level, the representaon of women is higher. The Group
connuously endeavours to make ASA Internaonal appealing to a diverse
populaon, and its commitment to equal, respecul and dignied
treatment throughout recruitment processes and through all stages of the
employee cycle is underpinned by the Group’s Non-Discriminaon Policy,
as referenced below.
The Commiee discussed the increasing importance of gender, naonal
and cultural diversity. The Company focuses on appoinng more women in
senior management roles and stepped up the hiring of women across the
board. Concrete targets have been set by the Company to increase the
proporon of female sta, parcularly in senior roles in East Africa and
South Asia. Progress on this front, which varies according to local cultural
norms, is tracked by the Commiee. Further measures are expected to be
developed in 2022 to ensure gender balance at various levels within the
Group. Kindly refer to page 17 in the Non-nancial informaon statement.
Non–Discriminaon Policy
Unfair discriminaon in any form is not acceptable. Management and
employees are expected to ensure that a fair and sympathec work
environment exists for all employees, irrespecve of marital status,
religion, disability, sexuality, gender, racial or ethnic background. This
policy of equal opportunies and diversity applies to recruitment,
remuneraon, training, sta development, promoon, discipline, and
all other aspects of employment. The policy also applies to volunteers,
interns, current or prospecve clients, suppliers or beneciaries, and
all others outside ASA Internaonal with whom ASA Internaonal or
its employees do business.
More detail on the Group’s approach to diversity can be found in the
Non-nancial informaon statement on pages 17 to 21.
Insurance
The Commiee also noted that one of the consequences of the Covid
pandemic was that the insurance company had oered to provide
Directors’ and Ocers’ liability insurance cover up to USD 5 million only.
The Company is in discussions with its brokers to increase this to the
previous USD 10 million of cover, which the Board considers to be the
necessary minimum.
Reappointment of Directors
Prior to the Company’s AGM each year, the Commiee considers and
makes recommendaons to the Board concerning the reappointment
of the Directors, having regard to their performance and ability to
connue to contribute to the Board. The Board has concluded that the
Non-Execuve Directors remain independent and connue to make a
signicant contribuon to the Board and its Commiees.
Following this year’s review in advance of the 2022 AGM, the Commiee
recommended to the Board that all serving Directors (other than Praful
Patel who will be rering at the 2022 AGM) be recommended to the
shareholders for reappointment at the AGM.
Commiee eecveness
The annual evaluaon of the Board and Commiees’ eecveness has
been undertaken in respect of 2021. Generally, the views expressed are
that the Board and Commiees funconed well during 2021 despite the
constraints imposed by Covid. The Execuve Directors performed well
in managing the business, and the Non-Execuve Directors willingly
gave addional me to ad hoc Covid-related Board discussions. For
further informaon, see ‘Board performance evaluaon’ on page 68.
The Commiee considers that it has access to sucient resources to
enable it to carry out its dues.
Guy Dawson
Chairman of the Nominaon Commiee
29 April 2022
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Annual Report and Accounts 2021
80
ASA Internaonal Group plc
ASA Internaonal Group plc
Annual Report and Accounts 2021
Annual Report and Accounts 2021
Commiee Report connued
Remuneraon Commiee report
Remuneraon Commiee report
This remuneraon report contains
informaon about the remuneraon
policy of the Company and details
about remuneraon of the
Company’s Directors.
Praful Patel
Chairman of the Remuneraon Commiee
Annual statement from the Remuneraon Commiee Chair
On behalf of the Remuneraon Commiee, I am pleased to present
the report on Directors’ remuneraon for the 2021 nancial year.
As menoned earlier in this report, I will be resigning as Chairman of
the Commiee when I leave the Board at the end of the 2022 AGM.
Remuneraon Policy
In line with the regulaons requiring a vote at least every three years,
the Directors’ Remuneraon Policy will be presented to shareholders for
approval at the 2022 AGM and is set out later in this report. If approved,
it will apply to Board and senior execuve remuneraon for three years
from the date of approval, unless it is changed earlier (which requires the
prior approval of the shareholders). Changes from the exisng policy are
made clear in the text.
How the Group performed
This year’s results have once again been adversely aected by Covid, as
is explained in detail elsewhere in the 2021 Annual Report. The Group
has, however, shown considerable underlying resilience as a result of the
eorts of our management and employees. Sta retenon has been
strong at 80%.
Key acvies in the 2021 nancial year
During the year the Commiee met on three occasions and:
• Discussed the Directors’ Remuneraon Policy, incenve structures
and LTIP (as dened below).
• Discussed the dra Remuneraon Policy to be proposed at the
2022 AGM.
• Discussed performance objecves and appraisals.
• Reviewed the outline of the proposed structure of LTIP for senior
execuves who had not been given share-based incenves before
the IPO.
• Reviewed the sta turnover and pay increase in the various countries.
• The rules of the ASA Internaonal LTIP had been adopted in 2018.
The Commiee agreed to make LTIP awards under the new stock
opon scheme as more fully described below.
Priories for 2022
• To oversee the implementaon of the new stock opon scheme and
the LTIP awards made thereunder.
• The Commiee will ensure that key sta generally across the
Group connue to be rewarded appropriately. In this context, the
Commiee notes the importance of having a documented and
consistent annual performance appraisal process for senior members
of sta that meet the requirements of a leading micronance company.
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Statements
Additional
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Governance
Report
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Remuneraon in 2021
The Commiee discussed and conrmed the Company’s current
remuneraon strategy, which is to aract and retain talented men
and women on an equal pay basis, albeit within a structure that tailors
pay levels to the market in individual countries so as to ensure local
compliance and compeveness. The Commiee’s approach to
remuneraon connues to be centred around the Company’s business
model. ASA Internaonal has a long-established model, and its human
resources policies are tailored to this model including its standardised
remuneraon policies.
The Commiee reviewed sta turnover and pay increases in countries,
nong that considering performance in some countries had recovered
well, costs had also increased. The Commiee also discussed the
performance objecves and appraisals for sta. The Commiee
supported management’s desire to adopt a cauous approach and to
keep exisng sta remuneraon policies in place for the me being.
These are based on paying compeve local base salaries with no
performance incenves or discreonary bonuses other than in
exceponal circumstances. The Commiee reviewed the outline of the
proposed structure of LTIP for senior execuves who had not been given
share-based incenves before the IPO and agreed that the same should
be developed further with more detailed documentaon.
Base salaries are subject to an annual cost of living increase: average
total compensaon for employees across the Group increased by 10%
in 2021.
There was no increase in the Directors’ remuneraon during the year
(except for the standard xed-rate increment for the Execuve Director,
Operaons). The Commiee had previously agreed that there should
be an independent market benchmark review of the remuneraon so
that the Commiee was able to make a recommendaon to the Board.
This had been postponed due to the need to direct resources elsewhere
during the Covid emergency. The Board will consider an independent
benchmark review in the course of 2022.
1. Remuneraon Commiee roles and responsibilies
The Remuneraon Commiee assists the Board in determining its
responsibilies in relaon to remuneraon. This includes making
recommendaons to the Board on the Company’s policy on execuve
remuneraon, seng the overarching principles, parameters and
governance framework of the Group’s Remuneraon Policy and
determining the individual remuneraon and benets package of each of
the Company’s Execuve Directors. The Remuneraon Commiee will
also ensure compliance with the UK Corporate Governance Code in
relaon to remuneraon.
The Commiee’s key objecves are to:
• Determine the overarching principles and parameters of the
Remuneraon Policy on a Group-wide basis.
• Establish and maintain a compeve remuneraon package to
aract, movate and retain high-calibre Execuve Directors (‘EDs’)
and senior management across the Group.
• Promote the achievement of the Group’s annual plans and strategic
objecves by providing a remuneraon package that contains
appropriately movang targets that are consistent with the
Group’s risk appete.
• Align senior execuves’ remuneraon with the interests
of shareholders.
The Commiee’s main responsibilies are to:
• Review and determine the total remuneraon packages of EDs
and other senior execuves in consultaon with the Chairman
and CEO and within the terms of the agreed policy.
• Approve the design and targets of any performance-related pay
schemes operated by the Group.
• Ensure that contractual terms on terminaon and any payments
made are fair to the individual and the Group, that failure is not
rewarded and that a duty to migate risk is fully recognised.
• Review any major changes in employee benets structures
throughout the Group.
• Select, appoint and determine terms of reference for independent
remuneraon consultants to advise the Commiee on remuneraon
policy and levels of remuneraon.
• Ensure that the remuneraon structures in the Group are
compliant with the rules and requirements of regulators,
and all relevant legislaon and that any deviaons are agreed in
the interest of the Company and its stakeholders.
• Address the requirements as specied in the Corporate Governance
Code for clarity, transparency, simplicity, migaon of reputaonal
risk, proporonality and alignment to culture and strategy; and
whether the Remuneraon Policy operates as intended in terms
of Company performance and quantum and if not what changes
are necessary.
• Seek advice from Group control funcons to ensure remuneraon
structures and annual bonuses are appropriately aligned to the
Group’s risk appete.
2. Remuneraon Commiee membership
The UK Corporate Governance Code provides that a Remuneraon
Commiee should comprise at least three members who are
independent Non-Execuve Directors (other than the Chairman of the
Board). The Remuneraon Commiee is chaired by Praful Patel, and
its other members are Gavin Laws and Hanny Kemna. All of them are
independent. Details of members’ aendance at meengs in 2021 are
set out on page 62. Upon rerement of Praful Patel at the 2022 AGM,
Salehuddin Ahmed will join the Remuneraon Commiee and assume
its chairmanship.
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3. Directors’ and key managers’ salaries
The salaries and fees of the Directors were approved by the Board on 28 June 2018. The salaries and fees of all Directors remained unchanged in
2021 except for the standard xed-rate increment for the Execuve Director, Operaons.
The salary levels for senior managers responsible for managing the Group were set in 2018 based on advice received from the remuneraon
consultants Willis Towers Watson who performed a benchmarking study of salaries in Dhaka and the Netherlands at the me of the IPO in 2018.
Senior management was rewarded at the me of the IPO through the exercise of stock opons.
Salaries at a country level are set by the local country management. Through our employee surveys management collects insights on salary
expectaons. The Company also considers salary levels paid in the markets including those paid by our competors. In 2021, the average percentage
increase in salaries at ASAI was 9%, and the actual increase in expenditure was 13% (see table below).
Parculars
Total (2021)
USD ’000
Total (2020)
USD ’000
Increase
in USD ’000 %
Employees’ remuneraon 56,813 51,608 5,205 10%
The Company has adopted a long-term incenve plan as more fully described on page 83.
Key performance indicators
(Amounts in USD million) 2021 2020 2019 2018
% Change
2021 – 2020
% Change
2020 – 2019
% Change
2019 – 2018
Number of clients (m) 2.4 2.4 2.5 2.2 0% -6% 17%
Number of branches 2,044 1,965 1,895 1,665 4% 4% 14%
Net loss/prot 6.4 -1.4 34.5 24.5 556% -104% 41%
OLP
1
403.7 415.3 467.4 378.5 -3% -11% 23%
PAR>30 days
2
5.2% 13.1% 1.5% 0.6%
1 Outstanding loan porolio (‘OLP’) includes o-book Business Correspondence (‘BC’) loans and Direct Assignment loans, excludes interest receivable, unamorsed loan
processing fees, and deducts modicaon losses and ECL provisions from Gross OLP.
2 PAR>30 is the percentage of on-book OLP that has one or more instalment of repayment of principal past due for more than 30 days and less than 365 days, divided by
the Gross OLP.
The annual percentage change in the Directors’ pay over the ve years to 2021, compared to the average for other employees, is set out below:
Annual salary/fee 2021 2020 2019 2018
% change
2022–2021
% change
2021–2020
% change
2020–2019
Execuve Directors: (USD)
Dirk Brouwer 425,000 425,000 425,000 425,000 0% 0% 0%
Aminur Rashid 177, 515 172,347 167,328 165,000 3% 3% 3%
Karin Kersten
Non-Execuve Directors: (GBP)
Praful Patel 60,000 60,000 60,000 60,000 0% 0% 0%
Gavin Laws 60,000 60,000 60,000 60,000 0% 0% 0%
Guy Dawson 70,000 60,000 60,000 60,000 16% 0% 0%
Hanny Kemna 60,000 50,000 50,000 50,000 20% 0% 0%
Salehuddin Ahmed 50,000 50,000 – –
Average salary per sta
(all ASAI sta excl. Execuve Directors) (USD) 4,274 3,665 3,440 3,099
Earnings growth – ASAIG consolidated 733% -10 4% 6.0% 20.1%
Commiee Report connued
Remuneraon Commiee report connued
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4. Remuneraon Policy
This secon is the proposed remuneraon policy with which will take eect, if it is approved by shareholders, from the date of the AGM.
4.1 Review and implementaon of policy
The policy is developed and reviewed by the remuneraon commiee of the board of directors (the ‘Commiee’).
Conicts of interests are managed by ensuring that the commiee comprises only independent non-execuve directors and no director is present
when their own remuneraon is being discussed. The Commiee seeks assistance from independent remuneraon consultants as appropriate
to provide an external perspecve and also seeks the view of the audit and risk commiee and senior management.
4.2 Changes from previous policy
This policy makes the following substanve changes from the policy approved by shareholders in 2019:
• Introducon of stock opons: Previously the execuve directors’ packages included no element of variable remuneraon. The introducon of
opons under the Company’s Long Term Incenve Plan (the LTIP) is designed to help to incenvise and retain directors and promote alignment
of directors’ and shareholders’ interest.
• Policy on recruitment: The company’s policy on remunerang newly appointed directors has been set out. This allows some variaon from the
remuneraon policy where necessary to secure the right appointment.
In July 2018, the Company adopted the LTIP, which was intended to be used to grant opons over ASAI’s shares to Execuve Directors as well senior
execuves selected by the Commiee. The LTIP also includes discreon for the Commiee to grant various dierent kinds of awards to take account
of local legal and tax requirements and changing policy.
In 2021 no awards were granted under the LTIP pending agreement on all relevant terms and condions to be completed by early 2022. The 2022
operaon of the LTIP was discussed and agreed in the Remuneraon Commiee held on 25 April 2022 and it is intended that rst grants will be made
before 30 June 2022 in case of employees and, subject to approval of this Policy, within six weeks aer the AGM of 22 June 2022 in case of
Execuve Directors. The intended value of the opon grants to the Execuve Directors is set forth under opons in the table in Para 4.3.
4.3 Policy table for Execuve Directors
The table below sets out all the components of remuneraon for execuve directors from the date of the AGM, other than recruitment packages.
Policy Table – Execuve Directors
Component and raonale Descripon
What is the maximum that may be paid in respect
of the component?
Basic salary
Helps to recruit and retain
high-calibre directors.
The Commiee reviews basic salary annually, taking account of
performance and market condions. Basic salary will not normally be
increased by more than the annual increase in basic salary of employees
of the group except as described, in relaon to new recruits, in
paragraph 4.
Salaries will not be increased in any year
by more than 10% for any director in
aggregate.
Benets
Enables directors to perform
their roles eecvely by
contribung to their wellbeing
and security.
Provides compeve benets
consistent with the role
Benets are set by the Commiee from me to me and currently
include:
• Private medical cover
• Life assurance cover
• 13th month bonus equal to one month salary
• Ex-patriate benets oered in connecon with recruitment
reimbursement for reasonable expenses incurred in connecon with
dues, including travel expenses and any tax payable on travel expenses.
The total cost of benets will not be
more than £50,000 in aggregate per
director but this may be exceeded if the
cost of providing insurance on the same
basis has increased from year to year.
Opons
Aligns pay with longer term
returns to shareholders
Directors can be granted opons under the ASA Internaonal Long-term
Incenve Plan (‘LTIP’). These are rights to acquire shares (or a cash
equivalent) at any me aer vesng for an exercise price set at grant
which is based on the market value of a share at grant.
Opons will normally vest in three instalments starng on the third
anniversary of grant (60%), and on the fourth and h anniversaries of
grant (20% each). No performance condions or post-vesng holding
periods apply. Malus and clawback provisions apply as described below.
Opons have a term of 10 years and can only be exercised to the extent
they have vested.
Dividend equivalents are not payable.
The fair value of opons (as used for
accounng purposes) granted to any
one director in any one nancial year
must not be more than 100% of their
basic salary.
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Commiee Report connued
Remuneraon Commiee report connued
Policy Table – Execuve Directors
Component and raonale Descripon
What is the maximum that may be paid in respect
of the component?
Pension
Helps to recruit and retain
high-calibre directors
Directors are entled to an employer contribuon to a pension scheme
or a cash payment in lieu.
Payments in lieu of pension and
employer contribuons to dened
contribuon schemes are limited to 17%
of each member’s basic salary. This is
equivalent to the contribuon rate for
the majority of the workforce.
Remuneraon policy 2022
Annual Salary Execuve Directors
Dirk Brouwer USD 425,000
Aminur Rashid USD 180,297¹
Karin Kersten USD 276,160
1 As Execuve Director of the Company, Mr. Rashid only receives a regular, annual salary for his services to the Company and no Board and Director fees or any other emoluments.
The number of opons granted to Execuve Directors in 2022 will be based on the fair value of the opons as a percentage of base salary proposed.
The maximum salary mulple for Execuve Directors is 35% for 2022.
Malus and clawback provisions only apply to opons, and no component of remuneraon is dependent on performance measures or targets (save for
value being linked to share price increase, in relaon to opons).
The Company does not have any in-employment or post-employment shareholding requirements for its Directors, as the Company believes the
nature of its LTIP, being a market-value opon plan, provides sucient long-term exposure for the Execuve Directors to share price and long-term
shareholder alignment.
The Company has selected a total vesng period of ve years (with opons normally vesng in instalments between years three and ve) as the
appropriate vesng period, as the Company believes that a phased, long term vesng period (without any addional holding period) is warranted
given the growth stage of the Company and the fact the market-value structure of the opon plan means the opons’ value depend on sustained
share price growth. Directors do not receive any incenves (bonus or LTIP) subject to performance condions. The Company does not provide
pension benets to Directors at present although the policy permits it to do so.
Unvested awards, will normally lapse on the date of leaving (‘bad leaver situaon’) unless ‘good leaver’ treatment is applied. ‘Good leaver’ treatment
normally means to remain capable of vesng on the normal vesng date, subject to performance achievement and pro-rata for me. Directors can
confer ‘good leaver’ treatment on any leaver within 30 days of leaving. Directors can reduce vesng and/or impose addional condions on exercise
where they do so.
See also table in Para 4.11.
4.4 Malus & clawback
The Commiee can reduce the number of shares in respect of which an opon vests or can be exercised (including a reducon to zero) if:
• There has been an error in the calculaon of the level of grant or vesng of any opon or the amount of any other variable remuneraon paid
to the director.
• There has been a misstatement of the Company’s results for any year before vesng.
• A business unit or prot centre in which the director worked has subsequently made a loss out of business wrien in that year or from
circumstances that could reasonably have been risk-managed.
• Informaon has emerged since the grant date relang to the relevant nancial year which would have aected the size of the opon granted.
• The Commiee determines in its absolute discreon that the underlying nancial health of the Group has signicantly deteriorated such that
there are severe nancial constraints on the Group which preclude or limit the Group’s ability to facilitate funding of opons and the director was
directly or indirectly (and either solely, or collecvely) responsible for such deterioraon.
• The director has engaged in conduct which has had a material adverse eect on the nancial posion of the Group, the member of the Group
by which the director was then employed or the business unit in which he or she then worked, between the award date and vesng.
• There has been a failure of risk management for which the director was directly or indirectly (and either solely, or collecvely) responsible.
• The director has been guilty of fraud or gross misconduct or has brought any member of the Group into disrepute.
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Similarly, the director can be required to give back some or all of the shares or cash received under the opon (or pay an amount equal to the value
of shares) if, within three years of vesng, the Commiee becomes aware that there has been a misstatement of results for any year before vesng
or the director has been guilty of fraud or gross misconduct or has brought the Group into disrepute.
4.5 Treatment of opons on takeovers and other transacons
Opons will generally vest early on a takeover. Alternavely, directors may be allowed or required to exchange their opons for equivalent opons
over shares in the acquiring company.
Where an opon vests in these circumstances, unless the Commiee decides otherwise, the number of shares in respect of which it can be exercised
will be reduced to reect the fact that it is vesng early.
The Commiee can adjust the number or type of shares under an opon and/or the exercise price to take account of any rights issue or similar
transacon, demerger, special dividend, variaon of capital or other event which it considers could have an impact on an opon.
4.6 Non-Execuve Directors
The table below sets out all the components of remuneraon for non-execuve directors from the date of the AGM, other than recruitment packages.
Policy Table – Non-Execuve Directors
Component and raonale Descripon
What is the maximum that may be paid in respect
of the component?
Fees
Aract and retain a Chairman and
Non-Execuve Directors who have
the requisite skills and experience to
determine the strategy of the Group
and oversee its implementaon
Directors’ fees are in principle reviewed on an annual basis
(if not agreed otherwise by the Commiee).
Directors’ fees (including any benets)
must not, in aggregate, be more than the
limit set out in the arcles of associaon
of the Company from me to me, which
is currently £2,500,000.
Expenses
Ensures the directors are not le out
of pocket
Reimbursement for reasonable expenses incurred in connecon
with dues, including travel expenses and any tax payable on
travel expenses.
N/A
Mr. Dawson is currently paid an annual fee of £50,000 plus an addional fee of £10,000 for the role of Chairman and £10,000 for chairing the
Nominaon Commiee.
Other non-execuve directors are currently paid an annual fee of £50,000 plus an addional £10,000 for chairing a commiee and £10,000 for the
role of senior independent non-execuve director.
Non-execuve directors do not receive opons and do not parcipate in any pension or incenve arrangements. As explained above, no shareholding
requirements apply to directors.
If a non-execuve director provides addional services to the Group, they may be paid for those services on a basis agreed by the board of directors.
Non-execuve Directors are not entled to any pension contribuons.
4.7 Relaonship to remuneraon paid to other employees
The remuneraon package of execuve directors is based on the same elements as those oered to other employees of the Group but with a greater
emphasis on variable pay and alignment with shareholders, delivered through opons. This reects the directors’ greater ability to inuence
corporate performance.
In formulang the policy, the Commiee started by looking at remuneraon packages oered to employees across the group and changed those
where necessary to reect the leadership role of directors and the internaonal pool from which directors are recruited.
The main remuneraon comparison measurements which the Commiee took into account when seng remuneraon policy for execuve directors
were the benchmark reports prepared by independent consultants in 2018 and salary levels and rewards across the micronance industry.
When drawing up the policy, the Commiee consulted with senior employees across the group including the country leaders.
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Commiee Report connued
Remuneraon Commiee report connued
4.8 Approach to recruitment
A new execuve director’s remuneraon should take into account that director’s level of the skills and experience required for the role and may start
o lower than his or her predecessor’s remuneraon with a view to reaching a market rate over me, subject to performance.
When recruing a new execuve director, the starng point for negoaons would be the components described in the table in paragraph 3.
However, if the Commiee considers it is necessary for the recruitment of a parcular individual, it may agree to components not contemplated in
that table.
The maximum level of variable remuneraon (excluding compensatory awards described below) for execuve directors will not be more than 100%
of the recruit’s basic salary (with opons valued as described in the policy table).
A director recruited to work outside their home country may be oered relocaon benets including:
• Accommodaon allowance.
• Educaon allowance.
• Two free air-ckets per year to and from home.
but these will not last more than two years from starng employment.
The Commiee may make compensatory awards in the form of cash, shares or share awards/opons in the Company to compensate a new execuve
director for benets they will lose as a result of joining the Company. Those awards would, so far as praccable:
• Reect the value, at the me of grant, of the awards being lost.
• Take the same form as the awards which are being lost.
• Vest at the same me as the awards being lost.
• Be subject to comparable service and performance condions (though any performance condions may relate to the performance of
the company).
When recruing a non-execuve director (including a chair), the remuneraon oered would be consistent with the components described in the
table in paragraph 3.
4.9 Relaonship between pay and share price performance
The graphs below set out what each of the execuve directors in oce at the date of this report could expect to receive from remuneraon granted
in the rst year of the policy (that is, the 2022 nancial year) by way of basic salary and benets, if any, on the one hand and opons on the other.
In each bar the rst bar shows the remuneraon payable, assuming no movement in the Company’s share price. Remuneraon payable is not aected
by the level of performance achieved, since the only variable component is the opons. These are not subject to performance condions and their
exercise price is based on market value at the date of grant, so no value can be ascribed to them if there is no increase in share price.
The second bar shows the same informaon but includes the value of shares under opon (less the exercise price) on the basis of a 50% increase in
share price between the dates of grant and vesng.
Basic
salary
Chief Execuve Officer
Remuneraon
■ Salary, benefits
and pensions
■ Opons value
(50% increase share price)
Max performance with
50% share price growth
100% 59%
41%
Basic
salary
Execuve Director
Operaons Remuneraon
Max performance with
50% share price growth
100%
59%
41%
Basic
salary
Corporate Development
Director Remuneraon
Max performance with
50% share price growth
100% 62%
38%
■ Salary, benefits
and pensions
■ Opons value ■ Salary, benefits
and pensions
■ Opons value
0
100,000
200,000
300,000
400,000
500,000
600,000
In GBP In GBP In GBP
0
60,000
40,000
20,000
120,000
100,000
80,000
180,000
160,000
140,000
200,000
220,000
260,000
240,000
50,000
140,000
110,000
80,000
230,000
200,000
170,000
320,000
290,000
260,000
350,000
380,000
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Statements
Additional
Information
Governance
Report
Strategic
Report
87
The gures used for the graphs on page 86 are arrived at as follows:
• Salary gures are based on the rates payable at the date of the AGM 2022 Annual General Meeng, when this Policy is to be considered by the
shareholders.
• Benets are based on the average cost of directors’ benets during 2021.
• It is assumed that opons are granted at the maximum level permied by this policy.
• No account is taken of dividends or dividend equivalents.
4.10 Service contracts and leers of appointment
Each of the execuve directors has a service contract and the non-execuve directors have a leer of appointment, all of which are available for
inspecon at the Company’s registered oce.
Execuve directors are not normally appointed for a xed term but connue unl their employment or oce is terminated.
Non-execuve directors are appointed for an inial (and renewable) three-year term but are subject to annual re-elecon at the AGM.
4.11 Policy on noce periods and payments for loss of oce
The company’s policy is that:
• Execuve directors’ employment contracts should require a noce period of 6 months from either party.
• Non-execuve directors’ leers of appointment require three months’ noce from either party but are terminated immediately if director is not
re-elected at an AGM.
Each of the directors’ contract or leer of appointment is consistent with this.
For each component of pay, the amount paid to an execuve director on terminaon will be determined as follows:
Component Determinaon
Salary and benets The director receives salary and benets and pension (if any) benets during their noce period.
The Company can decide to make a payment in lieu of noce equal to basic salary for the balance of the noce period
and may decide to pay this in instalments subject to reducon if the director enters alternave employment before the
end of the noce period.
Opons An opon will normally lapse on leaving employment. Opons which have already become exercisable may be
exercised for up to 12 months from the date of leaving aer which they will lapse.
However, if the director dies or leaves because of disability, ill-health, injury, redundancy, rerement, sale of Company
(or in other circumstances if the Commiee allows), the opon will connue in eect and, unless the Commiee
decides otherwise, the number of shares in respect of which it can vest and be exercised will be reduced pro rata to
reect the fact that the director le early.
Alternavely, the Commiee may allow the opon to vest on leaving, or at some point thereaer, in which case (unless
the Commiee decides otherwise) the number of shares in respect of which the opon can be exercised will be
reduced pro rata to reect the fact that it is vesng early.
If the director dies, the opon will vest on the date of death to the extent described above.
Other A deparng execuve director may also be paid some or all of the following on a reasonable basis to be determined by
the Commiee:
• Reasonable legal tax or outplacement expenses.
• Accrued holiday pay.
• Payments in compensaon for non-compete restricons.
• Relocaon expenses.
• Amounts required to sasfy or sele any actual or potenal legal claim by the director against any group Company.
• Ex-graa rerement gis and presentaons.
On terminaon, non-execuve directors are only entled to any outstanding fees for the period worked including their noce period.
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88
Commiee Report connued
Remuneraon Commiee report connued
4.12 Shareholder views
The Company consulted its main shareholders over the structure and scope of the current proposed Remuneraon Policy, including the LTIP.
Shareholders were not consulted on the details of the awards of (to individuals) to be made in 2022.
4.13 Prior commitments
Where the Company has made a commitment to a director to make a remuneraon payment or payment for loss of oce before this policy came into
eect or before the person became (but not in ancipaon of their becoming) a director, the Company will honour the commitment, even if it is
inconsistent with the remuneraon policy which is in eect when the payment is to be made.
The exisng directors have the following entlements pursuant to commitments made before this policy came into eect:
• Karin Kersten was oered EUR 50,000 in stock opons value at the me she joined the Company on 1 October 2021, at which me she was not
an Execuve Director. These opons will be formally granted aer the AGM of 22 June 2022.
4.14 Remuneraon policy for key execuves
The below constutes the framework for the remuneraon policy of the key execuves both at the country level and the head oce level, The policy
aims to:
• Aract, movate and retain high-calibre employees across the Group.
• Reward employees fairly, according to their performance.
• Promote the achievement of the Group’s annual plans and its long-term strategic objecves.
• Align the interests of employees with those of all key stakeholders, in parcular, our shareholders, clients and regulators.
• Support eecve risk management and promote a posive client conduct culture.
The Company will work closely with the Remuneraon Commiee to set the right policies and incenves for the key execuves both in the countries
and at its head oce.
On 18 July 2018 a number of the senior managers (including the Execuve Directors and Managing Directors of the subsidiaries) who were
instrumental in the creaon of ASA Internaonal were awarded a benecial interest in a poron of the shares of the Company following the exercise
of the 10% stock opon agreed by the Company pre IPO. The combined economic interest in the proceeds of the sale of the shares of the Company
amount to 6.7% of the issued and outstanding share capital of the Company. (This interest is indirectly held via Catalyst Connuity).
Various senior execuves (“execuves”), who joined the Group at holding level just prior to or since the IPO, presently were not yet adequately
incenvized by holding an interest in the Group. Consequently, these and other senior execuves of the Group will be incenvized by granng stock
opons as set forth above in 2022. In 2018 the Company adopted the LTIP which allows for awards to a large number of employees in senior
funcons at the holding and the country level. Awards will be made post the release of the 2021 results.
All key managers receive a xed salary, and there is no cash bonus scheme. At present the Company believes a performance-based incenve other
than the LTIP does not t the prole of the Company considering its key business of providing nancial services to low-income people.
5. Directors’ Remuneraon Report 2021
This secon of the report explains how the Group’s Remuneraon Policy for Directors, as originally approved at the Annual General Meeng in 2019,
was applied during the year.
The report also summarises the fees paid to Directors in 2021 as well as the current shareholding of the Chairman and the Execuve Directors in
the Company.
The Remuneraon Policy was approved by 92.80% of the votes cast at the AGM held in 2019 and the Remuneraon Report was approved by 100%
of the votes cast at the AGM held in 2021.
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Information
Governance
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A table with audited Director pay data is shown below.
Name Posion
Annual
salary/fee Benets Bonus
Total
variable pay
(2021)
Total
variable pay
(2020)
Total
xed pay
(2021)
Total
xed pay
(2020)
Dirk Brouwer
Chief Execuve Ocer
– Execuve Director
USD
425,000¹
Travel expenses
on actuals
0
0
0 USD
425,000
USD
425,000
Aminur Rashid
Execuve Director
– Operaons
USD
177,515
Travel expenses
on actuals
0
0
0 USD
177,515
USD
172,347
Karin Kersten
Corporate Development
Director
– – –
–
– – –
Non-Execuve Directors
Praful Patel
Non-Execuve Director GBP
60,000
Travel expenses
on actuals
0
0
0 GBP
60,000
GBP
60,000
Gavin Laws
Non-Execuve Director GBP
60,000
Travel expenses
on actuals
0
0
0 GBP
60,000
GBP
60,000
Guy Dawson
Non-Execuve Director GBP
70,000
Travel expenses
on actuals
0
0
0 GBP
70,000
GBP
60,000
Hanny Kemna
Non-Execuve Director GBP
60,000
Travel expenses
on actuals
0
0
0 GBP
60,000
GBP
50,000
Salehuddin Ahmed
Non-Execuve Director GBP
50,000
Travel expenses
on actuals
0
0
0 GBP
50,000
GBP
3,360
1 While the salary remained at USD 425,000, the amount paid was USD 439,284 and the dierence comes from translang the monthly salary to Euro for payment to Mr Brouwer
and the tax authories and then back to USD for reporng purposes.
6. Directors’ shareholdings
The shareholdings of Directors in the Company as of 31 December 2021 are shown below. There were no changes in the shareholdings between
31 December 2021 unl 29 April 2022:
Name of Director
Number of
shares
%
holding
Dirk Brouwer
1,2
20,266,146 20.3%
Aminur Rashid
1,3
373,178 0.37%
1 Reects the Company’s share capital held in the form of indirect benecial holdings of shares through an indirect holding in Catalyst Connuity. The votes aaching to the shares
held by Catalyst Connuity are ulmately controlled a company ulmately controlled by Dirk Brouwer). Decisions taken by this company, including decisions as to the vong of the
relevant shares, are made by the board of Directors thereof (i.e. Dirk Brouwer).
2 Dirk Brouwer holds his interest in the Company via CMIMC which in turn holds its interest in the Company via Catalyst Micronance Investors 30.41% and Catalyst Connuity
16.89%. Catalyst Micronance Investors and Catalyst Connuity own 47.30% in total, each company (ulmately) controlled by Dirk Brouwer.
3 Aminur Rashid has an indirect entlement to the proceeds of future sales of 373,178 shares of the Company, such proceeds to be allocated to him as a beneciary of the ASA
Internaonal Rerement Scheme.
Directors and employees of the Group are required to comply with applicable legislaon relang to dealing in the Company’s shares as well as the
Company’s share dealing rules.
7. Dates of Execuve Directors’ service contracts
Name Date of service contract
Dirk Brouwer 28 June 2018
Aminur Rashid 28 June 2018
Karin Kersten 25 April 2022
ASA Internaonal Group plc
Annual Report and Accounts 2021
90
Commiee Report connued
Remuneraon Commiee report connued
8. Non-Execuve Directors’ appointment leers
Name
Date of
appointment leer
Guy Dawson 28 June 2018
Gavin Laws 28 June 2018
Praful Patel 28 June 2018
Hanny Kemna 28 June 2018
Salehuddin Ahmed 7 December 2020
All Directors except Hanny Kemna and Salehuddin Ahmed were already on the Board of ASA Internaonal Holding prior to the establishment of
ASA Internaonal Group plc in May 2018. In view of the proposed lisng, Ms Kemna had been idened as a potenal candidate through well-
established contacts in the nancial industry including the Company’s network of advisers. Dr Ahmed was idened through the network of
Mr Choudhury in Bangladesh.
Consideraon of shareholders’ views
The Chairman of the Board will consult our major shareholders on a regular basis on key issues, including remuneraon, and is available
to be consulted by them. The Board shall ensure that a sasfactory dialogue with shareholders shall take place based on mutual understanding
of objecves.
Directors’ pay for 2021
Details of Directors’ pay are stated on page 82. The policy on execuve remuneraon and for xing the remuneraon packages of individual
Directors shall be developed in a fair and transparent manner. No Director is involved in deciding his or her own remuneraon. There has been
no change in pay for Directors except for the standard xed-rate increment for the Execuve Director, Operaons.
Dirk Brouwer – Chief Execuve Ocer
Mr Brouwer is employed through a service agreement dated 28 June 2018. His salary is USD 425,000and will be awarded share opons post the
2022 AGM. The Board approved a salary increase of USD 50,000 for Mr Brouwer as of 25 April 2022. Mr Brouwer’s service agreement is terminable
by either party with six months’ noce, or earlier upon conclusion of a terminaon agreement. The Company will consider making a payment under
any such agreement on a case-by-case basis, taking account of the contractual terms, the circumstances of the terminaon and any applicable duty to
migate. As an Execuve Director of the Company, Mr Brouwer only receives a regular, annual salary for his services to the Company and no Board
and Director fees or any other emoluments.
Aminur Rashid – Execuve Director, Operaons
Mr Rashid is employed through a service agreement dated 28 June 2018. His salary is USD 177,515 and will be awarded share opons
post the 2022 AGM. Mr Rashid’s service agreement is terminable by either party with six months’ noce, or earlier upon conclusion of a
terminaon agreement. The Company will consider making a payment under any such agreement on a case-by-case basis, taking account of
the contractual terms, the circumstances of the terminaon and any applicable duty to migate. As an Execuve Director of the Company,
Mr Rashid only receives a regular, annual salary for his services to the Company and no Board and Director fees or any other emoluments.
Karin Kersten – Corporate Development Director
Ms Kersten is employed through a service agreement dated 25 April 2022. Her salary is EUR 254.925 and will be awarded share opons post the
2022 AGM. Ms Kersten’s service agreement is terminable by either party with six months’ noce, or earlier upon conclusion of a terminaon
agreement. The Company will consider making a payment under any such agreement on a case-by-case basis, taking account of the contractual
terms, the circumstances of the terminaon and any applicable duty to migate.
Praful Patel – Non-Execuve Director
Mr Patel is a Non-Execuve Director engaged through a leer of appointment dated 28 June 2018. He is the Chairman of the Remuneraon
Commiee and a member of the Nominaon Commiee. His fee as a Non-Execuve Director is GBP 60,000 per annum (including a GBP 10,000
fee for chairing the Remuneraon Commiee) and his engagement with the Company can be terminated with three months’ noce.
Gavin Laws – Non-Execuve Director
Mr Laws is a Non-Execuve Director engaged through a leer of appointment dated 28 June 2018. He is the Chairman of the Audit and Risk
Commiee and a member of the Remuneraon Commiee. His fee as a Non-Execuve Director is GBP 60,000 per annum (including a GBP 10,000
fee for chairing the Audit and Risk Commiee) and his engagement with the Company can be terminated with three months’ noce.
Guy Dawson – Non-Execuve Director
Mr Dawson is the Chairman and a Non-Execuve Director engaged through a leer of appointment dated 28 June 2018 and was appointed as
Chairman on 1 January 2021. He is the Chairman of the Nominaon Commiee. His fee as a Non-Execuve Director and Chairman is GBP 70,000
per annum (including a GBP 10,000 fee for chairing the Board and a GBP 10,000 fee for chairing the Nominaon Commiee) and his engagement
with the Company can be terminated with three months’ noce.
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Governance
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91
Hanny Kemna – Non-Execuve Director
Ms Kemna is a Non-Execuve Director engaged through a leer of appointment dated 28 June 2018. She is a member of the Remuneraon,
and Audit and Risk Commiees. Her fee as a Non-Execuve Director and Senior Independent Director is GBP 60,000 per annum (including a
GBP 10,000 fee for acng as the Senior Independent Director as of 1 January 2020) and her engagement with the Company can be terminated
with three months’ noce.
Salehuddin Ahmed – Non-Execuve Director
Dr Ahmed is a Non-Execuve Director engaged through a leer of appointment dated 7 December 2020. He is a member of the Nominaon and
Audit and Risk Commiees. His fee as a Non-Execuve Director is GBP 50,000 per annum and his engagement with the Company can be terminated
with three months’ noce.
This report was approved by the Board of Directors on 29 April 2022 and signed on its behalf by:
Praful Patel
Chairman of the Remuneraon Commiee
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92
Independent Directors’ Commiee report
The Independent Directors’ Commiee comprises all of the Non-
Execuve Directors, being Praful Patel, Gavin Laws, Guy Dawson,
Salehuddin Ahmed and Hanny Kemna. It is chaired by Guy Dawson.
The Independent Directors’ Commiee meets at least twice a year
and at such other mes as its Chairman may deem necessary or
appropriate. It met three mes in 2021.
The Independent Directors’ Commiee idenes and manages maers
involving conicts of interest (including potenal conicts of interest)
between any Group company, on the one hand, and any controlling
shareholder or related party (each as dened under the Lisng Rules),
on the other hand. It is also responsible for overseeing and scrunising
the relaonship (set out in the Relaonship Agreement described in
the Corporate Governance secon of this Annual Report) between the
Group, its related pares and its controlling shareholders (including
evaluang, monitoring and approving any material transacons or
arrangements between such pares).
Aer due consideraon of the maers placed before it during the year,
the Commiee concluded that there were no conicts or other relevant
issues to be managed.
Commiee Report connued
Disclosure Commiee report
The Disclosure Commiee is chaired by the CEO and also includes the
CFO and the General Counsel. It meets as required in order to assist the
decisions of the Board concerning the idencaon of inside informaon
and to make recommendaons about how and when that informaon
should be disclosed in accordance with the Company’s disclosure
procedures manual. Its primary duty is to ensure that inside informaon
is properly disclosed in accordance with the requirements of the Market
Abuse Regulaon.
The Disclosure Commiee had conference calls and meengs
through the year in 2021 to assess developments in the Company
and concluded on each occasion that there was no maer which
could be considered as inside informaon or thought to be capable
of becoming inside informaon.
There have been no material changes in the interests held by Directors
or key managers since the lisng of the Company on 13 July 2018 other
than indirect shareholdings held by Dirk Brouwer and the nominee of
Md Shaqual Haque Choudhury.
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Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
93
Directors’ report
The Directors of the Company present their report for the year
ended 31 December 2021. The Company is a public limited company,
incorporated in England and Wales with the registered number
11361159 and with its registered oce situated at Highdown House,
Yeoman Way, Worthing, West Sussex BN99 3HH, United Kingdom.
The Strategic Report, set out on pages 1 to 56 of this Annual Report, and
Corporate Governance Report, Commiee reports and the Directors’
Remuneraon Report, set out on pages 88 to 91 of this Annual Report,
include informaon that would otherwise need to be included in this
Directors’ Report. Relevant items are referred to below and incorporated
by reference into this report. Readers are also referred to the Cauonary
Statement on the inside back cover page of this Annual Report.
Results and dividends
The consolidated results for the year are shown on page 106 of the
nancial statements. The prot before tax of the Company was
USD 25,705k, as against USD 2,578k for the previous year.
Due to the Covid impact on the Group’s nancial and operang
performance during 2020 and the resulng uncertainty, the Board
ulmately decided not to declare a dividend on earnings for that year.
In the light of the connuing impact of Covid on our nancial results,
the Board has also decided not to declare a dividend for 2021.
The Directors intend that the Company should pay a regular dividend.
This dividend policy will reect the long-term earnings and cash
ow potenal of the Group, consistent with maintaining sucient
nancial exibility.
Directors
The names of the Directors of the Company at the date of this report,
together with biographical details, are given on pages 58 and 59 of this
Annual Report. All of them served throughout the 2021 nancial year. In
accordance with the UK Corporate Governance Code, all Directors will
rere at the 2022 AGM and, except for Praful Patel, will oer themselves
for re-elecon at that meeng.
Further details on the Directors’ remuneraon and service contracts
or appointment leers (as applicable) can be found in the Directors’
Remuneraon Report on pages 88 to 91 of this Annual Report.
Directors’ interests
The Directors’ interests in the share capital of the Company as at
31 December 2021 are set out on page 89 of the Directors’
Remuneraon Report.
Powers and appointment of Directors
The Company’s Arcles of Associaon set out the powers of the
Directors, and rules governing their appointment and removal. The
Arcles of Associaon can be viewed at the registered oce of the
Company (during the Covid period if there are restricons on movement,
a copy of the Arcles may be obtained on request to the Company
Secretary at the registered oce). Further details on the powers,
appointment and removal of Directors are set out in the Corporate
Governance Report on page 68 of this Annual Report.
Directors’ indemnies and insurance
In accordance with its Arcles of Associaon, the Company has
granted indemnity to each of its Directors on terms consistent with
the applicable statutory provisions. The deeds indemnify the Director
in respect of (a) any liability incurred by or aaching to Directors in
connecon with any negligence, default, breach of duty or breach of
trust by the Director in relaon to the Company or any associated
company, or (b) in the actual or purported execuon and/or discharge
of the Director’s dues and/or the actual or purported exercise of the
Director’s powers and/or otherwise in relaon to, or in connecon with,
the Director’s dues, powers or oce as an employee, ocer, trustee or
agent of the Company and/or any associated company other than any
liability (i) to the Company or any associated company, (ii) to pay a ne
imposed in criminal proceedings, (iii) to pay a sum payable to a regulatory
authority by way of a penalty in respect of non-compliance with any
requirement of a regulatory nature (however arising), (iv) in defending
any criminal proceedings in which they are convicted, where such
convicon is nal, (v) in defending any civil proceedings brought by the
Company or an associated company in which judgment is given against
him or her, where such judgment is nal, or (vi) in connecon with any
applicaon for relief under the provisions referred to in secon 234(6) of
the Companies Act, where the court refuses to grant the Director relief,
and such refusal is nal.
Furthermore, the third-party indemnity shall not apply:
(i) to the extent that it is not permied by, or consistent with, law or
statute from me to me in force, the Arcles of Associaon of
the Company or the rules and regulaons of any regulatory body;
(ii) to the extent that the Director has been, or is entled to be,
indemnied or reimbursed by any Directors’ or Ocers’ liability
insurance or any other insurance;
(iii) where there has been gross negligence, fraud or wilful default by
the Director; nor
(iv) where the Director has improperly derived a personal benet
or prot.
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Annual Report and Accounts 2021
94
Governance Report connued
Directors’ report connued
Qualifying third-party indemnity provisions for the purposes of secon
234 of the Companies Act 2006 were accordingly in force during the
course of the year, and remain in force at the date of this report. The
Company also maintains liability insurance for its Directors and Ocers.
Share capital
The share capital of the Company as of 31 December 2021 consists of
100,000,000 ordinary shares of GBP 0.01 each.
Under secon 551 of the Companies Act 2006, the Directors may allot
equity securies only with the express authorisaon of shareholders
which may be given in general meeng, but which cannot last more than
ve years. Under secon 561 of the Companies Act, the Board may not
allot shares for cash (otherwise than pursuant to an employee share
scheme) without rst making an oer to exisng shareholders to allot
such shares to them on the same or more favourable terms in proporon
to their respecve shareholdings, unless this requirement is waived by a
special resoluon of the shareholders.
Rights aaching to shares
The Company’s Arcles of Associaon set out the rights and obligaons
aaching to the Company’s ordinary shares. All of the ordinary shares
rank equally in all respects.
At general meengs of the Company, on a show of hands, each member
has the right to one vote. In a poll, each member is entled to one vote
for every share held.
The shares carry no rights to xed income. No person has any special
rights of control over the Company’s share capital and all shares are fully
paid.
The Arcles of Associaon and applicable legislaon provide that the
Company can decide to restrict the rights aaching to ordinary shares
in certain circumstances (such as the right to aend or vote at a
shareholders’ meeng), including where a person has failed to comply
with a noce issued by the Company under secon 793 of the
Companies Act 2006.
Deadline for exercising vong rights at AGM
Full details of the deadlines for exercising vong rights in respect of the
resoluons to be considered at the AGM, to be held on 22 June 2022,
will be set out in the Noce of AGM.
Restricons on the transfer of shares
There are no specic restricons on the transfer of the Company’s
shares, which are governed by the general provisions of the Arcles of
Associaon and prevailing legislaon. The Arcles of Associaon set out
certain circumstances in which the Directors of the Company can refuse
to register a transfer of ordinary shares.
Directors and employees of the Group are required to comply with
applicable legislaon relang to dealing in the Company’s shares as well
as the Company’s share dealing rules. These rules restrict employees’
and Directors’ ability to deal in ordinary shares at certain mes, and
require the employee or Director to obtain permission prior to dealing.
The Directors holding shares are in compliance with the provision of the
share dealing rules. The Company is not aware of any arrangements
between its shareholders that may result in restricons on the transfer
of shares and/or vong rights.
Employee long-term incenve plan
The Company has adopted a long-term incenve plan (the ‘Plan’).
In 2022 share opons will be granted to the Execuve Directors and
certain senior execuves selected by the Remuneraon Commiee of
the Board, but the Plan gives exibility for the Company to grant a range
of awards to take account of local legal and tax requirements and
changing policy.
In the case of Directors this will be subject to the current Directors’
Remuneraon Policy. Certain selected senior Employees of the Company
and its subsidiaries will also be eligible.
The Company will make awards under the Plan within 42 days of 26 April
2022 in respect of employees and within 42 days of 22 June 2022 (AGM)
for Execuve Directors. In any ten-year period, not more than 10% of
the issued ordinary share capital of the Company may be issued or be
issuable under the Plan and all other employee share plans operated by
the Company.
Substanal shareholdings
Details of substanal shareholdings in the Company are set out in the
Corporate Governance Report on page 70 of this Annual Report.
Arcles of Associaon
The Company’s Arcles of Associaon were last amended in July 2018.
They may only be amended by a special resoluon of the Company’s
shareholders. The Arcles of Associaon can be viewed on request to
the Company Secretary at the registered oce of the Company.
Going concern
As disclosed in note 2.1 of the nancial statements and page 76 of
the audit and risk commiee report, the Directors have concluded that
a material uncertainty exists that may cast signicant doubt over the
Group’s ability to connue as a going concern. However, none of
our lenders have called in their debts in the past two years during
the pandemic.
Directors’ responsibility statement
The directors are responsible for preparing the annual report and the
nancial statements in accordance with applicable United Kingdom law
and regulaons.
Company law requires the directors to prepare nancial statements for
each nancial year. Under that law the directors have elected to prepare
the group and parent company nancial statements in accordance with
UK adopted internaonal accounng standards. Under company law the
directors must not approve the nancial statements unless they are
sased that they give a true and fair view of the state of aairs of the
group and the company and of the prot or loss of the group and the
company for that period.
In preparing these nancial statements the directors are required to:
• Select suitable accounng policies in accordance with IAS 8
Accounng Policies, Changes in Accounng Esmates and Errors and
then apply them consistently.
• Make judgements and accounng esmates that are reasonable and
prudent.
• Present informaon, including accounng policies, in a manner that
provides relevant, reliable, comparable and understandable
informaon.
• Provide addional disclosures when compliance with the specic
requirements in IFRSs is insucient to enable users to understand
the impact of parcular transacons, other events and condions on
the group and company nancial posion and nancial performance.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Additional
Information
Governance
Report
Strategic
Report
95
• In respect of the group nancial statements, state whether UK
adopted internaonal accounng standards have been followed,
subject to any material departures disclosed and explained in the
nancial statements.
• In respect of the parent company nancial statements, state whether
UK adopted internaonal accounng standards, have been followed,
subject to any material departures disclosed and explained in the
nancial statements.
• Prepare the nancial statements on the going concern basis unless it
is appropriate to presume that the company and/ or the group will not
connue in business.
The directors are responsible for keeping adequate accounng records
that are sucient to show and explain the company’s and group’s
transacons and disclose with reasonable accuracy at any me the
nancial posion of the company and the group and enable them
to ensure that the company and the group nancial statements
comply with the Companies Act 2006. They are also responsible for
safeguarding the assets of the group and parent company and group
and hence for taking reasonable steps for the prevenon and detecon
of fraud and other irregularies.
Under applicable law and regulaons, the directors are also responsible
for preparing a strategic report, directors’ report, directors’ remuneraon
report and corporate governance statement that comply with that law
and those regulaons. The directors are responsible for the maintenance
and integrity of the corporate and nancial informaon included on the
company’s website.
Directors’ responsibility statement (DTR 4.1)
The directors conrm, to the best of their knowledge:
• That the consolidated nancial statements, prepared in accordance
with UK adopted internaonal accounng standards, give a true and
fair view of the assets, liabilies, nancial posion and prot of the
parent company and undertakings included in the consolidaon taken
as a whole.
• That the annual report, including the strategic report, includes a fair
review of the development and performance of the business and the
posion of the company and undertakings included in the
consolidaon taken as a whole, together with a descripon of the
principal risks and uncertaines that they face.
• That they consider the annual report, taken as a whole, is fair,
balanced and understandable and provides the informaon necessary
for shareholders to assess the company’s posion, performance,
business model and strategy.
Guy Dawson
Chairman
Dirk Brouwer
Chief Execuve Ocer
Corporate Governance Statement
The Company is required by the Disclosure and Transparency Rules
and Guidance to prepare a Corporate Governance Statement including
certain specied informaon. Informaon fullling the requirements
of the Corporate Governance Statement can be found in this Directors’
Report and the Corporate Governance Report, Commiee reports and
Directors’ Remuneraon Report on pages 88 to 91 of this Annual Report.
This informaon is incorporated by reference into this Directors’ Report.
The Company has complied throughout the year 2021 with all relevant
provisions of the UK Corporate Governance Code.
Strategic Report
The Company’s Strategic Report can be found on pages 1 to 56 of this
Annual Report.
Business acvies
The Group’s business acvies, together with a descripon of future
developments (including the factors likely to aect future development
and performance) and its summarised nancial posion, are set out in the
Strategic Report.
Informaon on the Company’s employment pracces (including with
respect to employee involvement) and greenhouse gas emissions is set
out on pages 30 to 31 and in the Non-nancial informaon statement on
pages 17 to 21 of the Strategic Report.
Signicant agreements aected by a change of control
A change of control of the Company, following a takeover bid, may cause
a number of agreements to which the Company is party to take eect,
alter or terminate. These include certain credit facility agreements which
include change of control clauses.
Financial instruments
Details of the Group’s nancial instruments can be found in note 2.2.2 to
the nancial statements. The notes begin on page 110.
Financial risk management
The Group has procedures in place to idenfy, monitor and evaluate the
signicant risks it faces. The Group’s risk management objecves and
policies are described on pages 50 to 56, and the risks associated with
the Group’s nancial instruments are analysed in note 2.2.2 on pages
113 to 115 of the nancial statements.
Post-balance sheet events
Most of the loan agreements are subject to covenant clauses, whereby
the subsidiary is required to meet certain key nancial raos. Some
subsidiaries did not full some of the raos as required in contracts.
Out of total loans of USD 314 million, USD 131 million had breached loan
covenants as at year end. The Group was able to receive waivers from
most of the lenders. As of 31 December 2021, the balance for credit
lines with breached covenants without waivers is USD 111 million, which
are fully drawn. The Group has received waivers amounng to USD
36.7million aer the balance sheet date. The Group is in discussions with
the lenders for waivers on the remaining balance and expects those
waivers will be in place in the second quarter of 2022.
On 14 March 2022, the RBI announced new regulaon for the
micronance sector in India, applicable to all banks, NBFC-MFIs and
other parcipants in the micronance sector. The Group’s preliminary
assessment is that this is a posive development for ASA India as it
creates a level playing eld in the micronance sector. The key changes
include the removal of the interest rate cap and margin cap, loans shall
be collateral-free (also for banks providing micronance loans), and
lenders will be restricted to provide micronance loans to clients up to
a maximum of 50% of the client’s household income. The new
regulaons are eecve from 1 April, 2022.
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ASA Internaonal Group plc
Annual Report and Accounts 2021
96
Governance Report connued
Directors’ report connued
The Russian invasion of Ukraine on 24 February 2022 represents a
non-adjusng post balance sheet event. The resulng global economic
and polical crisis and rising inaon across certain territories in which
the Group operates have the potenal to put pressure on the Group’s
clients’ ability to repay their loans in the future which could increase
arrears levels and write-os. At the current me, it is not possible to
esmate the impact of this post balance sheet event.
The Company expects the operang environment to remain challenging
in certain market. Although the disrupon caused by Covid-19 have
reduced over me, any new waves of infecon can sll have a material
impact on the nancial performance of the Group in 2022 in terms of
overdue and write-os on the loan porolio, the disbursement of new
loans, and the protability of the Group. We expect that in some markets
the overdue will remain temporarily high.
In Sri Lanka measures have been taken including restricng loan sizes in
order to prevent clients from over-borrowing due to the current
economic crisis.
At the current me, it is not possible to esmate the nancial impact
on the Group of the above menoned post-balance sheet events. The
Group has performed several scenario forecasts to establish its going
concern assessment and these are detailed in note 2.1 of the nancial
statements. These incidents have been treated as post-balance sheet
non-adjusng events.
Polical donaons
No polical donaons were made during the year.
Disclosure of informaon under Lisng Rule 9.8.4CR
As required by Lisng Rule 9.8.4CR, the table below sets out the locaon
of informaon required to be disclosed under Lisng Rule 9.8.4 R:
Lisng Rule
sub-secon Item Locaon
9.8.4 (4) Details of any long-term
incenve schemes as
required by LR 9.4.3 R
Remuneraon Report on
pages 83 to 88
9.8.4 (5) – (6) Details of any waiver of
emoluments by a Director
Remuneraon Report on
page 89
9.8.4 (10) Details of any contract of
signicance to which the
Company or a subsidiary is a
party and in which a Director
or a controlling shareholder is
materially interested
ASA NGO Bangladesh
and AMSL (a wholly
indirectly owned
subsidiary of the
Company) entered into
a fresh lease agreement
and a services
agreement (for the lease
of oce spaces and
related services) in 2020.
9.8.4 (11) Details of any contract for
the provision of services to
the Company or a subsidiary
by a controlling shareholder,
subsisng during the period
under review, unless the
services are part of the
shareholder’s main business
None
Lisng Rule
sub-secon Item Locaon
9.8.4 (14) Statement that the
Relaonship Agreement
between the Company and
the controlling shareholder
has been complied with
throughout the year
Corporate Governance
Report on page 65
Resoluons at the 2022 AGM
The Company’s AGM will be held on 22 June 2022. Resoluons to be
proposed at the AGM include the elecon of the Directors and the
reappointment of Ernst & Young (‘EY’) as the auditor of the Group.
The full text of each of the resoluons to be proposed at the 2022 AGM
will be set out in the Noce of AGM sent to the Company’s shareholders.
A leer from the Chairman and explanatory notes will accompany the
Noce of AGM.
Auditor
The Board (following a recommendaon from the Audit and Risk
Commiee) has recommended that EY be reappointed as the Group’s
auditor at the 2022 AGM, at which resoluons concerning EY’s
reappointment and authorising the Directors to set its remuneraon will
be proposed. The full text of the relevant resoluons will be set out in
the Noce of AGM sent to the Company’s shareholders.
Disclosure of informaon to the auditor
Each of the persons who are Directors at the date of approval of this
Annual Report conrms that:
• So far as the Director is aware, there is no relevant audit
informaon of which the Company’s auditor is unaware.
• They have taken all the steps that they ought to have taken as a
Director in order to make themselves aware of any relevant audit
informaon and to establish that the Company’s auditor is aware of
that informaon.
This conrmaon is given and should be interpreted in accordance with
the provisions of secon 418 of the Companies Act 2006.
By order of the Board
Prism Cosec
Company Secretary
29 April 2022
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ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
97
Financial
Statements
Strategic
Report
Financial Statements
Contents
Financial Statements
98 General informaon
99 Independent auditor’s report
106 Consolidated statement of prot or loss and
other comprehensive income
107 Consolidated statement of nancial posion
108 Consolidated statement of changes
in equity
109 Consolidated statement of cash ows
110 Notes to consolidated nancial statements
164 Statutory statement of prot or loss and
other comprehensive income
165 Statutory statement of nancial posion
166 Statutory statement of changes in equity
167 Statutory statement of cash ows
168 Notes to the statutory nancial statements
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
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Annual Report and Accounts 2021
98
Financial Statements 
General informaon
Directors: Appointed on:
Guy Dawson 15 May 2018
Dirk Brouwer 15 May 2018
Aminur Rashid 28 June 2018
Gavin Laws 28 June 2018
Praful Patel 28 June 2018
Johanna Kemna 28 June 2018
Dr Salehuddin Ahmed 07 December 2020
Registraon:

Company secretary:
Prism Cosec Limited



Registered oce:



Oce addresses:







Website:

Email address:
Véronique Schyns


Auditor:



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
99
Financial
Statements
Strategic
Report
Independent auditor’s report to the members of ASA Internaonal Group plc
Opinion

• 

the year then ended;
• 
• 


Group Parent company
Consolidated income statement and statement of comprehensive income
for the year then ended

income for the year then ended
 
 
 







Basis for opinion



Independence





Material uncertainty related to going concern

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
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
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JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
100
Financial Statements 
Independent auditor’s report to the members of ASA Internaonal Group plc connued
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• 

• 
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• 
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• 

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• 
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
• 
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• 
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• 



• 














Overview of our audit approach
Audit scope
• 

• 


• 
• 
loans and advances to customers
• 
Materiality
• 
An overview of the scope of the Parent Company and Group audits
Tailoring the scope




JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
101
Financial
Statements
Strategic
Report

















Involvement with component teams










• 
• 


• 




Climate change















Key audit maers





JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
102
Financial Statements 
Independent auditor’s report to the members of ASA Internaonal Group plc connued
Risk Our response to the risk
Key observaons communicated to
the Audit and Risk Commiee
Expected credit loss provisions (2021: $27.5m,
2020: $27.5m)
Refer to the Audit Commiee Report (page 73);
Accounng policies (page 122); and Note 13.2 of the
Consolidated Financial Statements (page 135)

















the ability of the Group to distribute and collect

increased risk in certain countries in which the






specialists we reviewed the model




order to establish whether model weaknesses




















appropriateness of disclosures made within











impairments were in compliance with the


Risk of fraud in revenue recognion through the
incorrect recording of revenue arising from
cous loans and advances to customers.
(2021: $176m, 2020: $131m)
Refer to the Audit Commiee Report (page 73);
Accounng policies (page 115); and Note 4.1 of the
Consolidated Financial Statements (page 129)







deferrals and payment moratoria across the


increases the risk that these are not accounted for







independently recalculated the interest



























interest income was found to be materially










JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
103
Financial
Statements
Strategic
Report
Our applicaon of materiality


Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to inuence the economic decisions of the
users of the nancial statements. Materiality provides a basis for determining the nature and extent of our audit procedures.










• 
• 
• 
• 
Starng basis
Adjustment
Materiality
Performance materiality
The applicaon of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements exceeds materiality.









Reporng threshold
An amount below which idened misstatements are considered as being clearly trivial.





JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
104
Financial Statements 
Independent auditor’s report to the members of ASA Internaonal Group plc connued
Other informaon














Opinions on other maers prescribed by the Companies Act 2006


• 

• 
Maers on which we are required to report by excepon




• 
not visited by us; or
• 

• 
• 
Corporate Governance Statement





• 

• 

• 

• 
• 
• 

• 
Responsibilies of directors






JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
105
Financial
Statements
Strategic
Report
Auditor’s responsibilies for the audit of the nancial statements





Explanaon as to what extent the audit was considered capable of detecng irregularies, including fraud





• 

• 
• 
• 
• 




• 

• 




• 





• 




Other maers we are required to address
• 


• 
Use of our report




Stephen Liler (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
106
Financial Statements 
Consolidated income statement and statement of comprehensive income

Notes
2021
USD’000
2020
USD’000
  175,732 131,339
  14,035 10,747
Interest and similar income 189,767 142,086
  (42,439) (40,445)
Net interest income 147,328 101,641
  10,518 10,460
Total operang income 157,846 112,101
  (37,509) (27,250)
Net operang income 120,337 84,851
  (56,813) (51,608)
  (1,985) (1,782)
  (4,398) (4,428)
  (29,904) (24,961)
  (1,532) 506
Total operang expenses (94,632) (82,273)
Prot before tax 25,705 2,578
  (15,594) (3,518)
  (3,753) (455)
Prot/(loss) for the period 6,358 (1,395)
Prot/(loss) for the period aributable to:
 8,787 (720)
 (2,429) (675)
6,358 (1,395)
Other comprehensive income:
 (11,583) (2,130)
  1,381 322
 (365) (3)
Total other comprehensive (loss)/income to be reclassied to prot or loss in subsequent periods,
net of tax (10,567) (1,811)
  (1) 6
  698 (896)
Total other comprehensive income not to be reclassied to prot or loss in subsequent periods,
net of tax 697 (890)
Total comprehensive (loss) for the period, net of tax (3,512) (4,096)
Total comprehensive income/(loss) aributable to:
 (1,096) (3,338)
 (2,416) (758)
(3,512) (4,096)
Earnings per share  USD USD

 0.09 (0.01)
 0.09 (0.01)

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
107
Financial
Statements
Strategic
Report
Consolidated statement of nancial posion

Notes
2021
USD’000
2020
USD’000
Ass ets
Cash at bank and in hand  87,951 90,165
Loans and advances to customers  373,242 380,122
Due from banks  65,259 73,279
  237 238
Property and equipment  4,085 4,617
  5,031 5,195
  13,362 11,303
  8,939 13,600
  3,966 708
  482 33
Total assets 562,554 579,260
Equity and liabilies
Equity
Issued capital  1,310 1,310
  155,405 147,291
  995 (718)
  (54,132) (43,091)
Total equity aributable to equity holders of the parent 103,578 104,792
  (135) 2,281
Total equity 103,443 107,073
Liabilies
Debt issued and other borrowed funds  318,674 342,186
Due to customers  87,812 80,174
  5,391 5,446
  6,265 2,502
  2,296 –
Lease liability  3,459 3,629
  602 2,147
  32,937 33,855
Provisions  1,675 2,248
Total liabilies 459,111 472,187
Total equity and liabilies 562,554 579,260


Dirk Brouwer Tanwir Rahman
CEO CFO


JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
108
Financial Statements 
Issued capital
USD’000
Retained
earnings
USD’000
Other
reserves
USD’000
Foreign
currency
translaon
reserve
USD’000
Non-
controlling
interest
USD’000
Total
USD’000
At 1 January 2020 1,310 148,011 (147) (41,044) 3,039 111,169
 – 720 – (675) (1,395)
Other comprehensive income:

 – – (896) – – (896)

of subsidiaries – – – (2,047) (83) (2,130)
 – – 322 – – 322
 – – 3 – – 3
Total comprehensive (loss)/income for the period – 720 (571) (2,047) (758) (4,096)
Dividend – – – – – –
At 31 December 2020 1,310 147,291 (718) (43,091) 2,281 107,073
At 1 January 2021 1,310 147,291 (718) (43,091) 2,281 107,073
 – 8,787 – (2,429) 6,358
Other comprehensive income:

 – 698 – – 698

of subsidiaries – – (11,596) 13 (11,583)
 – 1,381 – – 1,381
 – (366) – – (366)
Total comprehensive (loss)/income for the period – 8,787 1,713 (11,596) (2,416) (3,512)
Disposal of ASA Consultancy Limited and ASA
 – (673) – 555 – (118)
Dividend – – – – – –
At 31 December 2021 1,310 155,405 995 (54,132) (135) 103,443

Consolidated statement of changes in equity

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
109
Financial
Statements
Strategic
Report
Notes
2021
USD’000
2020
USD’000
Operang acvies
 25,705 2,578
Adjustment for movement in:
  (88,777) (42,513)
  13,004 10,443
  76,843 38,202
 (14,260) (16,871)
Net cash ows used in operang acvies 12,515 (8,161)
Invesng acvies
Purchase of property and equipment  (1,713) (981)
 652 31
 (452) –
 (673) –
Net cash ow used in invesng acvies (2,186) (950)
Financing acvies
Proceeds from debt issued and other borrowed funds 181,053 171,749
Payments of debt issued and other borrowed funds (188,787) (151,524)
 (4,680) (4,389)
Net cash ow from nancing acvies (12,414) 15,836
Cash and cash equivalents at 1 January 71,733 65,545
 (2,085) 6,725
 (3,239) (537)
Cash and cash equivalents as at 31 December  66,409 71,733
Operaonal cash ows from interest
Interest received 193,848 131,341
Interest paid 42,146 39,944

Consolidated statement of cash ows

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
110
Financial Statements 
1. Corporate informaon




Investment strategy

Abbreviaon list
Denions Abbreviaon
 
ASA Consultancy Limited ASA Consultancy
 
 ASAIG
 
 ASA India
 ASA Kenya
 
 
ASA Lanka Private Limited ASA Lanka
 ASA Myanmar
 ASA Rwanda
 ASA Sierra Leone
 
 
 
 
ASA Pakistan Limited ASA Pakistan
 
 
 AMSL
 
 
 CMI Lanka
 
 CMIC
 CMI
 
 Lak Jaya
 
 MBA Philippines
 
 
 
Pinoy Consultancy Limited Pinoy
 
 
 
Reserve Bank of India RBI
State Bank of India SBI
 Sequoia
Notes to the consolidated nancial statements

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
111
Financial
Statements
Strategic
Report
2. Accounng policies
2.1 General




2.1.1 Basis of preparaon






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

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
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

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




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
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
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
112
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
2. Accounng policies 
2.1.1 Basis of preparaon 

























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






















JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
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Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
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Strategic
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2.1.2 Statement of compliance








2.1.3 Basis of consolidaon


















2.2 Summary of signicant accounng policies

2.2.1 Foreign currency translaon














2.2.2 Financial instruments





JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
114
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
2. Accounng policies 
2.2.2 Financial instruments 














• 
• 
and
• 













• 
• 

• 









Loans and advances to customers



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






JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
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Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
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
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




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
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












2.2.4 Derivave instruments and hedge accounng







JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
116
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
2. Accounng policies 
2.2.4 Derivave instruments and hedge accounng 







2.2.5 Recognion of income and expenses






























2.2.6 Cash and cash equivalents and Cash at bank and in hand






JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
117
Financial
Statements
Strategic
Report
2.2.7 Property and equipment






 5 years
 5 years
 
 50 years




2.2.8 Taxes




























2.2.9 Dividend distribuon on ordinary shares



2.2.10 Short-term employee benets


JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
118
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
2. Accounng policies 
2.2.11 Post-employment benets




















2.2.12 Goodwill











2.2.13 Intangible assets









Research and development costs


• 
• 
• 
• 
• 



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
119
Financial
Statements
Strategic
Report

Inial licence and set-up costs Development costs
Useful life  
  
  
basis over the period of licence 
 Acquired 
2.2.14 Impairment of non-nancial assets












2.2.15 Liability for death and mulpurpose risk funds




2.2.16 Fair value measurement











and





2.2.17 Leases









JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
120
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
2. Accounng policies 
2.2.17 Leases 














2.2.18 Provisions







2.3. New standards, interpretaons and amendments adopted by the Group


2.3.1 Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4


• 

• 

• 



2.3.2 Covid-19-Related Rent Concessions beyond 30 June 2021 – Amendments to IFRS 16









2.4. Standards issued but not yet eecve



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
121
Financial
Statements
Strategic
Report
2.4.1 IFRS 17 Insurance Contracts







• 
• 



2.4.2 Amendments to IAS 1: Classicaon of Liabilies as Current or Non-current


• 
• 
• 


2.4.3 Reference to the Conceptual Framework – Amendments to IFRS 3







2.4.4. Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16






2.4.5 Onerous Contracts – Costs of Fullling a Contract – Amendments to IAS 37






2.4.6 IFRS 1 First-me Adopon of Internaonal Financial Reporng Standards – Subsidiary as a rst-me adopter





2.4.7 IFRS 9 Financial Instruments – Fees in the ‘10 per cent’ test for derecognion of nancial liabilies








JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
122
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
2. Accounng policies 
2.4. Standards issued but not yet eecve 
2.4.8 Denion of Accounng Esmates – Amendments to IAS 8





2.4.9 Disclosure of Accounng Policies – Amendments to IAS 1 and IFRS Pracce Statement 2









2.5 Signicant accounng judgements and esmates


2.5.1 Determining the lease term of contracts with renewal and terminaon opons


2.5.2 Allowance for Expected Credit Loss (‘ECL’) on loans and advances









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
Bucket based on last payment days
Within
7 days 8-30 days 31-90 days
Within 91-180
days 91-180 days >180 days

Current
 

 



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
123
Financial
Statements
Strategic
Report


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
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






Loss %
Overdue age 2021 2020
 50% 
 70% 
 100% 






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


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













JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
124
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
2. Accounng policies 
2.5 Signicant accounng judgements and esmates 
2.5.2 Allowance for Expected Credit Loss (‘ECL’) on loans and advances 

Bucket based on last payment days
Within 7 days 8-30 days 31-90 days 91-180 days >180 days >365 days

Current
     

     

     

     

     

     








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

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





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










JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
125
Financial
Statements
Strategic
Report

2021 2020
Parculars
Own
porolio
USD’000
O-book
porolio
USD’000
Interest
receivable
USD’000
Own
porolio
USD’000
O-book
porolio
USD’000
Interest
receivable
USD’000
 3,204 339 148  28 
 7,184 793 309   
 11,574 543 37  158 
 2,136 – 1,202   182
24,098 1,675 1,696   
2021 2020
Allocated to:
Gross
outstanding
USD’000
ECL
USD’000 Coverage
Gross
outstanding
USD’000
ECL
USD’000 Coverage
 393,298 24,098 6%   
 35,583 1,675 5%   
 10,700 1,696 16%   
439,581 27,469 6%   


2.5.3 Modicaon of loans






2.5.4 Dened benet plans





2021 2020
Lak Jaya
ASA
Pakistan
ASA
India
ASA
Nigeria
Pagasa
Philippines Lak Jaya
ASA
Pakistan
ASA
India
ASA
Nigeria
Pagasa
Philippines
Discount rate          
Salary increment          
          
          



2.5.5 Liability for death and mulpurpose risk funds





JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
126
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
2. Accounng policies 
2.5 Signicant accounng judgements and esmates 
2.5.6 Business Correspondence and partnership models







2.5.7 Securisaon agreements












2.5.8 Direct Assignment





2.5.9 Leases – esmang the Incremental Borrowing Rate (‘IBR’)


















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SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
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Strategic
Report



Country
Lease
Currency
Credit
Rang
Approach
reference rate IBR at dierent lease duraon (year)
Tenure of lease 1 2-4 5-6 7-9
Ghana  BBB local    
  BBB local    
Sierra Leone SLL  build-up    
Kenya  BB- local    
Rwanda   build-up    
  BBB- build-up    
  BB- build-up    
  BB- local    
  BBB- build-up    
India  BB local    
Pakistan PKR BBB build-up    
Sri Lanka LKR BB local    
Myanmar MMK BBB- build-up    
Philippines  BBB- local    
2.5.10 Taxes













2.5.11 Impairment of non-nancial assets





3. Segment informaon


• 
• 
• 
• 
• 









JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
128
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
3. Segment informaon 




As at 31 December 2021
West Africa
USD’000
East Africa
USD’000
South Asia
USD’000
South East
Asia
USD’000
Non-
operang
enes
USD’000
Total
segments
USD’000
Adjustments
and
eliminaons
USD’000
Consolidated
USD’000
 61,472 32,742 62,092 33,452 9 189,767 – 189,767
 – – – – 2,846 2,846 (2,846) –
 (3,891) (5,603) (22,453) (6,049) (4,443) (42,439) – (42,439)
 (227) (521) (231) (389) (1,477) (2,845) 2,845 –
Net interest income 57,35 4 26,618 39,408 27,014 (3,065) 147,329 (1) 147,328
 702 2,874 2,929 3,954 59 10,518 – 10,518

1
– – – – 29,577 29,577 (29,577) –
 220 (1,663) (206) (2,173) (3,373) (7,195) 7,195 –
Total operang income 58,276 27,829 42,131 28,795 23,198 180,229 (22,383) 157, 846
 (1,655) (2,327) (27,622) (5,891) (14) (37,509) – (37,509)
Net operang income 56,621 25,502 14,509 22,904 23,184 142,720 (22,383) 120,337
 (13,630) (11,999) (14,810) (11,172) (5,202) (56,813) – (56,813)
 (142) 151
(331) (562) (648) (1,532) – (1,532)
 (327) (458) (638) (346) (620) (2,389) 404 (1,985)
 (808) (1,033) (1,307) (1,167) (83) (4,398) – (4,398)
 (6,131) (5,558) (5,652) (9,623) (2,940) (29,904) – (29,904)
 (10,564) (1,974) (4,164) (373) (2,272) (19,347) – (19,347)
Segment prot 25,019 4,631 (12,393) (339) 11,419 28,337 (21,979) 6,358
Total assets 134,719 83,602 198,393 105,872 396,864 919,450 (356,896) 562,554
Total liabilies 73,497 63,629 160,887 89,045 149,502 536,560 (77,449) 459,111

 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
129
Financial
Statements
Strategic
Report

As at 31 December 2020
West Africa
USD’000
East Africa
USD’000
South Asia
USD’000
South East
Asia
USD’000
Non-
operang
enes
USD’000
Total
segments
USD’000
Adjustments
and
eliminaons
USD’000
Consolidated
USD’000
     17  – 
 – – – –    –
       – 
        –
Net interest income       – 
       – 

1
– – – –    –
        –
Total operang income        
       – 
Net operang income        
       – 
  
    – 
        
       – 
       – 
     277  – 
Segment prot        
Total assets        
Total liabilies        
4. Interest and similar income


Notes
2021
USD’000
2020
USD’000
  175,732 
  14,035 
189,767 
4.1. Interest income calculated using EIR
2021
USD’000
2020
USD’000
Interest income on loans and advances to customers 175,732 
 – 15
175,732 







4.2. Other interest and similar income
2021
USD’000
2020
USD’000
Interest income on short-term deposits 4,579 
 8,898 
 558 
14,035 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
130
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
5. Interest and similar expense

Notes
2021
USD’000
2020
USD’000
 (33,508) 
 (4,631) 
 (301) 
 (266) 
  (3,733) 
(42,439) 
6. Other operang income
2021
USD’000
2020
USD’000
 1,881 
Document fees 856 
Proceeds from sale of pass-books 159 
 3,867 
 2,503 
 846 
 406 
10,518 

7. Expected credit loss expense
Notes
2021
USD’000
2020
USD’000
  (28,227) 
 – 10
Impairment on bank and intercompany balances  (109) 
 (6,441) 
 (2,732) 
(37, 509) 


7.1. Impairment on bank and intercompany balances
2021
USD’000
2020
USD’000
Impairment of bank balance (52) 
Impairment of due from bank (51) 
 (6) 
(109) 

8. Personnel expenses

Notes
2021
USD’000
2020
USD’000
 (51,287) 
 (3,951) 
  (1,575) 
(56,813) 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
131
Financial
Statements
Strategic
Report
8.1. Rerement benet liability
Notes
2021
USD’000
2020
USD’000
 5,446 
 (592) 
  1,575 
 (698) 
 (340) 
Rerement benet liability as at end of the period 5,391 





8.2. Charge for the period
2021
USD’000
2020
USD’000
Current service cost for the period (1,156) 
Interest cost for the period (419) 
 – 
(1,575) 
8.3. Sensivity analysis

Assumpons
Discount rate Future salary increases
Sensivity level Year
1%
increase
USD’000
1%
decrease
USD’000
1%
increase
USD’000
1%
decrease
USD’000
 2021 (501) 1,384 1389 (513)
2020    
9. Other operang expenses

Notes
2021
USD’000
2020
USD’000
  (25,095) 
Professional fees  (2,707) 
Audit fees  (1,406) 
 (327) 
 (369) 
(29,904) 
9.1. Administrave expenses
2021
USD’000
2020
USD’000
 (3,557) 
 (9,405) 
 (1,079) 
 (2,865) 
 (3,414) 
 (1,747) 
 (3,028) 
(25,095) 



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
132
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
9. Other operang expenses 
9.2. Professional fees
2021
USD’000
2020
USD’000
Professional fees
 (378) 
 (2,329) 
(2,707) 

9.3. Fees payable to the Group’s auditor are analysed as below:
2021
USD’000
2020
USD’000
 (940) 

Audit of the accounts of subsidiaries (269) 
Audit-related assurance services (194) 
 (1,403) 
 (3) 
(1,406) 
10. Exchange rate dierences

2021
USD’000
2020
USD’000
 (7, 530) 
 5,998 
(1,532) 
11. Income tax and withholding tax expense
2021
USD’000
2020
USD’000
Income tax expense
 (18,844) 
 477 
 2,773 
(15,594) 
11.1. Current tax liability
2021
USD’000
2020
USD’000
 2,502 

Current period 18,844 
Previous period (477) 28
 (14,085) 
 (519) 
Balance as at end of period 6,265 
11.2. Deferred tax assets
2021
USD’000
2020
USD’000
 11,303 
 2,488 
 (429) 
Balance as at end of period 13,362 


JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
133
Financial
Statements
Strategic
Report
11.3. Deferred tax liability
2021
USD’000
2020
USD’000
 – 
 2,296 
 – 
Balance as at end of period 2,296 –
11.4. Deferred tax relates to:
2021 2020
Deferred tax relates to:
Deferred tax
assets
USD’000
Deferred tax
liabilies
USD’000
Income
statement
USD’000
Deferred tax
assets
USD’000
Deferred tax
liabilies
USD’000
Income
statement
USD’000
 6,205 – 1,365 4,881 – 4,069
 1,505 – (95) 1,634 – 497
 – (97) 200 – (482) (1,785)
 3,244 – 1,803 1,469 – 1,176
 1,682 310 254 1,253 654 2,080
 – (213) (40) – (172) (234)
 – 2,296 (2,296) – – –
 812 – (715) 1,695 – 1,715

 (86) – (284) 371 – 71
13,362 2,296 192 11,303 – 7,589
11.5. Reconciliaon of the total tax charge
2021
USD’000
2020
USD’000
Accounng result before tax 25,705 
 (9,565) 
 477 
 (271) 
 (6,191) 
 185 
 (11) 
 (218) 
Total income tax expense for the period (15,594) 
 37% 
 61% 
11.6. Income tax per region
2021
USD’000
2020
USD’000
 (10,564) 
 (4,164) 
 (1,974) 
 (344) 
 1,452 
Total income tax per region (15,594) 
11.7. Withholding tax expense
2021
USD’000
2020
USD’000
 (1,457) 
 (2,296) –
Total withholding tax expense (3,753) 


JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
134
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
12. Cash at bank and in hand
2021
USD’000
2020
USD’000
Cash at bank 87,684 
Cash in hand 267 
87,951 





13. Loans and advances to customers

Notes
2021
USD’000
2020
USD’000
  393,298 
Interest receivable on loans to customers 10,700 
  (25,794) 
 (3,775) 
 (1,187) 
Net loan porolio 373,242 
13.1. Gross loan porolio as of 31 December 2021 is USD 393.3 million (31 December 2020: 396.6 million)























JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
135
Financial
Statements
Strategic
Report

13.2. Allowance for expected credit loss
Notes
2021
USD’000
2020
USD’000
 (25,242) 
  (28,227) 
 (6,441) 
 32,770 
 1,346 –
Balance at end of the period (25,794) 








13.3. The breakdown of the allowance for expected credit loss is as follows:
2021
USD’000
2020
USD’000
 (24,098) 
 (1,696) 
(25,794) 
13.4. The following tables explain the movement of gross OLP and interest receivable and related provisions in stages
Stage 1 Stage 2 Stage 3 Total
USD’000 USD’000 USD’000 USD’000
Gross OLP ECL Gross OLP ECL Gross OLP ECL Gross OLP ECL
At 1 January 2021 319,122 (1,901) 52,202 (8,258) 25,281 (14,012) 396,605 (24,171)

  – – – – –  –
Assets realised  –  –  –  –
    

  77   – – – –
     – – – –
   – –   – –
 – –     – –
 11  – –  – –
 – – 52    – –
 – – – –    
        
At 31 December
2021 361,956 (6,895) 17,181 (5,629) 14,161 (11,574) 393,298 (24,098)
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
136
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
13. Loans and advances to customers 
Stage 1 Stage 2 Stage 3 Total
USD’000 USD’000 USD’000 USD’000
Gross OLP ECL Gross OLP ECL Gross OLP ECL Gross OLP ECL
At 1 January 2020 408,391 (916) 4,208 (1,224) 2,922 (1,851) 415,521 (3,991)

  – – – – –  –
Assets realised  –  –  –  –
 –  –  –  – 

     – – – –
 12 1   – – – –
  128 – –   – –
 – –  8   – –
 – – – –    
  –  –  –  –
At 31 December
2020        
Stage 1 Stage 2 Stage 3 Total
USD’000 USD’000 USD’000 USD’000
Interest
receivable ECL
Interest
receivable ECL
Interest
receivable ECL
Interest
receivable ECL
At 1 January 2021        
Interest revenue for
the year  –  –  –  –

year  –  –  –  –
   –  – 

  12   – –
  21 –   – –
 51 –  – – –
 – –  205   – –
 – – –  – – –
 17   2 – –
 – – – –    
At 31 December
2021 7, 540 (144) 3,090 (1,495) 70 (57) 10,700 (1,696)
Stage 1 Stage 2 Stage 3 Total
USD’000 USD’000 USD’000 USD’000
Interest
receivable ECL
Interest
receivable ECL
Interest
receivable ECL
Interest
receivable ECL
At 1 January 2020        
Interest revenue for
the year  –  –  –  –

year  –  –  –  –
 –  –  –  – 

     – – – –
   – –   – –
 – –  21 72  – –
 – – – –   – 
At 31 December
2020        
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
137
Financial
Statements
Strategic
Report
14. Due from banks
Notes
2021
USD’000
2020
USD’000
Due from banks 44,794 
  20,465 
65,259 
14.1. Escrow bank account at Cibank












15. Equity investments at FVOCI
2021
USD’000
2020
USD’000

Balance at the beginning of the period 238 
 (1)
Balance at the end of the period 237 



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
138
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
16. Property and equipment

2021
Furniture &
xtures
USD’000
2021
Vehicles
USD’000
2021
Oce
equipment
including IT
USD’000
2021
Buildings
USD’000
2021
Total
USD’000
2020
Furniture &
xtures
USD’000
2020
Vehicles
USD’000
2020
Oce
equipment
including IT
USD’000
2020
Buildings
USD’000
2020
Total
USD’000
 1,999 400 8,621 1,306 12,326     
 (1,366) (298) (5,908) (137) (7,709)     
Carrying value at the beginning of the period 633 102 2,713 1,169 4,617  121   
 168 6 1,539 – 1,713     
 (107) (21) (467) (77) (672)     
 (377) (65) (210) – (652)  2  – 
 (254) (39) (1,667) (25) (1,985)     
 370 61 186 (4) 613 –  – 
 84 24 334 9 451 2 2  7

Carrying value at the end of the period 517 68 2,428 1,072 4,085  102   
Cost at the end of the period 1,683 320 9,483 1,229 12,715     
 (1,166) (252) (7,055) (157) (8,630)     
Carrying value at the end of the period 517 68 2,428 1,072 4,085  102   
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
139
Financial
Statements
Strategic
Report
17. Right-of-use assets and lease liability
2021
USD’000
2020
USD’000
Right-of-use assets at the beginning of the period 5,195 
 4,265 
 (4,398) 
 (31) 
Right-of-use assets at the end of the period 5,031 
2021
USD’000
2020
USD’000
Lease liability at the beginning of the period 3,629 
 301 
 4,265 
 (4,680) 
 (56) 
Lease liability at the end of the period 3,459 




18. Other assets

Notes
2021
USD’000
2020
USD’000
  70 
Prepayments 2,157 
 1,856 
 2,150 
Security deposit 236 
  762 
Insurance claim receivable 260 577
Interest receivable on due from banks 457 550
 15 
  976 
8,939 


JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
140
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
18. Other assets 
18.1. Receivables from related pares
2021
USD’000
2020
USD’000
Sequoia BV 53 52
MBA Philippines 5 225
 – 108
 12
 –
70 

18.2. Receivable under o-book BC model is presented net of impairment. Gross amount receivable under o-book BC model is USD 2.08
million (2020: 2.19 million).
18.3. Other receivables includes various advances in relaon to employees’ insurance, receivable from VAT and service tax authories etc.

19. Derivaves
2021
USD’000
2020
USD’000
 3,143 –
 823 708
 3,966 708
 (602) 
 – –
 (602) 
Total derivaves at fair value 3,364 
19.1. The Group is holding the following foreign exchange forward contracts:
As of 31 December 2021
Maturity
<30 days 1-3 months 3-12 months >12 months Total
Pakistan
 2,900 11,999 29,213 – 44,112
 171 168 180 – 173
 104 838 2,201 – 3,143
Myanmar
 1,000 2,000 – – 3,000
 1,947 1,942 – – 1,945
 (77) 56 – – (21)

 500 800 – – 1,300
 2,346 2,541 – – 2,444
 (5) (76) – – (81)
Sierra Leone
 – – 2,000 – 2,000
 – – 13,396 – 13,396
 – – (117) – (117)

 – – – 750 750
 – – – 32 32
 – – – (383) (383)
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
141
Financial
Statements
Strategic
Report
As of 31 December 2020
Maturity
<30 days 1-3 months 3-12 months >12 months Total
Pakistan
 –   – 
 –   – 171
 –   – 
Myanmar
  – 800  
  –   
  –   

 –  – – 
 –  – – 
 –  – – 
Sierra Leone
 – – –  
 – – –  
 – – –  

19.2. The Group also holds the below swap contracts:
2021
USD’000
2020
USD’000
Cross-currency interest rate swap  16,104 
 823 708













20. Intangible assets and goodwill
Goodwill
USD’000
Intangible
assets
USD’000
Total
USD’000
Cost
At 1 January 2020  – 
 – – –
  – 
At 31 December 2020  – 
 –  
  – 
At 31 December 2021 30 452 482



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
142
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
20. Intangible assets and goodwill 









21. Issued capital
2021
USD’000
2020
USD’000
 1,310 
1,310 

22. Retained earnings

2021
USD’000
2020
USD’000
 147, 291 
 (673) –
Result for the period 8,787 
Balance at the end of the period 155,405 
Prot for the period
 8,787 
 (2,429) 
6,358 






23. Other reserves

Notes
2021
USD’000
2020
USD’000
 (718) 
  698 
 1,381 
  (1)
 (365) 
Balance at the end of the period 995 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
143
Financial
Statements
Strategic
Report
24. Foreign currency translaon reserve


2021
USD’000
2020
USD’000
Balance at the beginning of the period (43,091) 
 (11,596) 
 555 –
Balance at the end of the period (54,132) 
25. Debt issued and other borrowed funds
Notes
2021
USD’000
2020
USD’000
  244,788 
  29,000 
  7, 50 0 
  5,000 
  10,000 
  13,125 
  5,000 
Interest payable on third-party loans 4,261 
318,674 
25.1. Breakdown of borrowings by operang subsidiaries are shown below:
2021
USD’000
2020
USD’000
ASA India 94,911 
 45,042 
ASA Pakistan 47,844 
 23,815 
ASA Kenya 8,580 
 2,929 
ASA Myanmar 11,977 
 4,380 
Lak Jaya 2,767 
 – 
 2,543 
244,788 








25.2. Loan from Symbiocs-managed funds (ASAIH/ASAI NV)





25.3. Loan from Oikocredit (ASAIH)



25.4. Loan from OPIC (ASAIH)



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
144
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
25. Debt issued and other borrowed funds 
25.5. Loan from BIO (ASAIH)


25.6. Loan from OeEB (ASAIH)



25.7. Loan from Ci (ASAI NV)


26. Due to customers


2021
USD’000
2020
USD’000
Clients' security deposits 73,518 
 14,294 
87,812 



27. Other liabilies
Notes
2021
USD’000
2020
USD’000

Security deposits 2,630 
 418 518
 211 
 921 
Accrued audit fees 1,192 
 2,830 
Amount due to employees 1,111 
  102 518
  20,465 
 364 
 133 502
 191 221
  2,369 
32,937 


JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
145
Financial
Statements
Strategic
Report
27.1. Amount due to related pares
2021
USD’000
2020
USD’000
CMI – 1
Sequoia BV 24 
MBA Philippines 78 
102 518
27.2. Other liabilies include various smaller accruals and provisions for various enes in the Company. Individually none of the payables are
over USD 150K.
28. Provisions
2021
USD’000
2020
USD’000
 1,675 
1,675 



29. Addional cash ow informaon
29.1. Changes in operang assets
2021
USD’000
2020
USD’000
Loans and advances to customers (89,112) 
Movement in due from banks 5,500 
Movement in restricted cash (4,168) 
 (4,265) 
 3,268 
(88,777) 
29.2. Changes in operang liabilies
2021
USD
2020
USD
Due to customers 13,024 
 (2,925) 
 (592) 
Movement in lease liability 4,265 
Movement in provisions (768) 
13,004 
29.3. Non-cash items
2021
USD’000
2020
USD’000

– Property and equipment 1,985 
 4,398 
 301 
 37, 509 
 32,965 
 (3,422) 
 1,575 
 1,532 
76,843 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
146
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
29. Addional cash ow informaon 
29.4. Reconciliaon of cash and cash equivalents
2021
USD’000
2020
USD’000
 66,409 
 21,542 
Cash at bank and in hand as per balance sheet 87,951 
30. Risk management
30.1 General






30.2 Risk management structure
































JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
147
Financial
Statements
Strategic
Report
Risk category Denion Risks Descripon
Business risk






Growth risk 

 


 

Climate-related risk 

 

Operaonal
risk






 

 

 

IT risk


systems and business processes due




 

System vulnerability 

 

 

System access control 
 

 
Finance risk



interest rate risk which can adversely

Credit risk Risk that the Group will incur a loss because its clients


Liquidity risk Risk that the Group will be unable to meet its payment


 

Interest rate risk 


Legal and
compliance
risk




 
 

Product transparency 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
148
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
30. Risk management 
30.3 Risk migaon
Business risk










Operaonal risk





IT risk






Finance risk












Legal and compliance risk



Proven micronance methodology





JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
149
Financial
Statements
Strategic
Report

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 


General risk migaon






30.4 Financial risks
30.4.1 Credit risk










2021
USD’000
2020
USD’000
 87,684 
Loans and advances to customers 373,242 
Customer security deposit (73,518) 

1
1,675 
Due from banks 65,259 
 8,598 
Maximum credit exposure 462,940 
 





JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
150
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
30. Risk management 
30.4.1 Credit risk 

Cash and cash
equivalents
(excluding
cash in hand)
USD’000
Loans and
advances to
customers
USD’000
Customer
security
deposit
USD’000
Due from
banks
USD’000
Other
assets
USD’000
O-book
porolio
(BC model)
USD’000 Total
      – 
      – 
South Asia       
      – 
  – –   – 
Maximum credit exposure 87,684 373,242 (73,518) 65,259 8,598 1,675 462,940

Cash and cash
equivalents
(excluding
cash in hand)
USD’000
Loans and
advances to
customers
USD’000
Customer
security
deposit
USD’000
Due from
banks
USD’000
Other
assets
USD’000
O-book
porolio
(BC model)
USD’000 Total
      – 
     258 – 
South Asia       
      – 
  – –   – 
Maximum credit exposure       



Total direct lending/IFRS 9 stages
Due from
banks
1
USD’000
Gross Loans
and advances to
customer
USD’000
Total lending
USD’000
Stage 1
USD’000
Stage 2
USD’000
Stage 3
USD’000
      
      
South Asia      
      
  –  – – –
Total 65,259 393,298 458,558 361,956 17,181 14,161
ECL provision –     
Coverage rao²     
 
 

Total direct lending/IFRS 9 stages
Due from
banks
1
USD’000
Gross Loans
and advances to
customer
USD’000
Total lending
USD’000
Stage 1
USD’000
Stage 2
USD’000
Stage 3
USD’000
      
      
South Asia      
      
  –  – – –
Total      
ECL provision –     
Coverage rao²     
 
 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
151
Financial
Statements
Strategic
Report








2021
Enty
USD’000
Stage 1 Stage 2 Stage 3 Total
India 19,650 10,401 6,494 36,545
Myanmar 7,812 2,788 165 10,765
Sri Lanka 922 128 544 1,594
28,384 13,317 7,203 48,904
2020
USD’000
Enty Stage 1 Stage 2 Stage 3 Total
India    
Myanmar    
Sri Lanka   585 
Philippines    
  215  
Pakistan    
Kenya  557  
 101   
 150   
Rwanda 15 111  
   

2021
USD’000
Parculars Stage 2 Stage 3
 13,318 
 (239) 
 13,079 
2020
USD’000
Parculars Stage 2 Stage 3
 46,627 
 (1,188) 
 45,439 
30.4.2 Liquidity risk






JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
152
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
30. Risk management 
30.4.2 Liquidity risk 

• 


• 

• 


Liabilies FY2021
in USD’000 On demand
<3
months 3-12 months
Sub-total
1-12 months
1-5
years
Over
5 years
Sub-total
>12 months
No xed
maturity Total
Debt issued and other borrowed
funds 75,891 56,406 72,553 204,850 113,824 – 113,824 – 318,674
Due to customers 19,850 28,857 38,534 87, 241 571 – 571 – 87,812
Lease liability – 17 433 450 2,924 85 3,009 – 3,459
 – 102 117 219 383 – 383 – 602
 835 4,710 3,328 8,873 596 – 596 23,468 32,937
Provisions – 384 752 1,136 539 – 539 – 1,675
96,576 90,476 115,717 302,769 118,837 85 118,922 23,468 445,159
Liabilies FY2020
in USD’000 On demand
<3
months 3-12 months
Sub-total
1-12 months
1-5
years
Over
5 years
Sub-total
>12 months
No xed
maturity Total
Debt issued and other borrowed
funds        – 
Due to customers      –  – 
Lease liability – 28    518  – 
 –     –  – 
 588     –   
Provisions – –   – – – – 
        

Assets FY2021
in USD’000 On demand
<3
months 3-12 months
Sub-total
1-12 months
1-5
years
Over
5 years
Sub-total
>12 months
No xed
maturity Total
Cash at bank and in hand 62,440 3,854 21,657 87,951 – – – – 87,951
Loans and advances
to customers 14,233 60,149 280,289 354,671 18,571 – 18,571 – 373,242
Due from banks – 27,066 7, 228 34,294 10,499 – 10,499 20,466 65,259
 – – – – – – – 237 237
 – 955 2,358 3,313 653 – 653 – 3,966
 – 1,613 4,843 6,456 2,483 – 2,483 – 8,939
76,673 93,637 316,375 486,685 32,206 – 32,206 20,703 539,594
Assets FY2020
in USD’000 On demand
<3
months 3-12 months
Sub-total
1-12 months
1-5
years
Over
5 years
Sub-total
>12 months
No xed
maturity Total
Cash at bank and in hand     – – – – 
Loans and advances
to customers      –  – 
Due from banks –     –   
 – – – – – – –  
 – – – – 708 – 708 – 708
 –     –   
     –   
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
153
Financial
Statements
Strategic
Report

FY2021
1 January 2021
USD’000
Cash ows
USD’000
Non-cash
movement
USD’000
Foreign
exchange
movement
USD’000
31 December
2021
Debt issued and borrowed funds 342,186 (7,734) – (15,778) 318,674
 3,629 (4,680) 4,566 (56) 3,459
Total liabilies from nancing acvies 345,815 (12,414) 4,566 (15,834) 322,133
FY2020
1 January 2020
USD’000
Cash ows
USD’000
Non-cash
movement
USD’000
Foreign
exchange
movement
USD’000
31 December
2020
Debt issued and borrowed funds   –  
     
Total liabilies from nancing acvies     
30.4.3 Foreign exchange rate risk










• 

• 


FX
translaon
reserve – actual
2021
FX
translaon
reserve aer
–10% rate
2021
Movement
2021
FX
translaon
reserve – actual
2020
FX
translaon
reserve aer
–10% rate
2020
Movement
2020
 (26,017) (31,553) (5,536)   
 (1,485) (3,317) (1,832)   
South Asia (22,814) (26,288) (3,477)   
 (3,453) (4,977) (1,524)   
 (365) (391) (25)   
Total (54,134) (66,526) (12,394)   








JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
154
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
30. Risk management 
30.4.3 Foreign exchange rate risk 

Foreign
exchange prot
and loss-actual
2021
USD’000
Foreign
exchange
prot and loss
aer
-10% rate
2021
USD’000
Movement
2021
USD’000
Foreign
exchange prot
and loss-actual
2020
USD’000
Foreign
exchange
prot and loss
aer
-10% rate
2020
USD’000
Movement
2020
USD’000
 (142) 8 150   
 151 225 73   
South Asia (331) (342) (11)   
 (562) (436) 126   
 (648) (1,618) (969)   
Total (1,532) (2,163) (631)   
30.4.4 Interest rate risk












2021 2020
Increase in
basis points
Decrease in basis
points
Eect on prot before tax Eect on prot before tax
USD’000 USD’000 USD’000 USD’000
USD  –10 0 622 (798)  
PKR  –10 0 72 (72) 127 
  –10 0 62 (62)  
30.5 Managing interest rate benchmark reform and associated risks












Derivaves







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SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
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









30.6 Legal and compliance risk


















30.7 Strategic risk







31. Commitments










JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
156
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
32. Related party disclosures
32.1 Key management personnel










Remuneraon of Directors


2021
USD’000
2020
USD’000
 2,110 
 – –
 – –
 – –
2,110 




32.2 Reporng dates of subsidiaries



JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
157
Financial
Statements
Strategic
Report
32.3 Subsidiaries
Country of incorporaon 2021 ownership 2020 ownership

ASA Consultancy Ghana 
1

ASA India India  
 India  
Pinoy India  
 India  
ASA India India  
2
  
3

3
 Indonesia  
   
   
   
ASA Pakistan Pakistan  
   
ASA Myanmar Myanmar  
   
ASA Rwanda Rwanda  
ASA Sierra Leone Sierra Leone  
   
   
 Sri Lanka 
4

 Ghana  
CMI Lanka Sri Lanka  
5
Lak Jaya Sri Lanka  
ASA Lanka Sri Lanka  
ASA Kenya Kenya 
6

6
   
AMSL   
   
1 ASA Consultancy limited was liquidated on
 
 
 
 
 
32.4 Relaonship agreement
Relaonship agreement with the Controlling Shareholder Group










32.5 Other related pares


Name of related party Relaonship
CMI 
Sequoia Service provider to the Company
 Service provider to the Company
MBA Philippines Business partner
 Minority shareholder in ASA India
 Subsidiaries of CMI
CMIMC 
CMIC 
CMII Subsidiary of CMI
ASA Social Services Service provider to the Parent
CIMS BV Service provider to the Parent
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
158
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
32. Related party disclosures 
32.5 Other related pares 
Income from related
pares USD’000
Expenses to related
pares
USD’000
Amount owed by
related pares
USD’000
Amount owed to
related pares
USD’000
CMI  – – – 
 – – – 
Sequoia  185   
 158 71 52 
MBA Philippines   – 5 78
  – 225 
  – – – –
 – – 108 –
   –  
  –  
CIMS BV  – – 12 –
 – – –
CMII  – – – –
 – – –
32.6 Non-controlling interest




31 December 2021 31 December 2020
Lak Jaya
USD’000
ASA India
USD’000
Lak Jaya
USD’000
ASA India
USD’000
Current assets 9,834 92,360  
 465 6,381  
 6,862 98,913  
 421 2,386  
 2,367 (11,715)  
 (392) (22,289)  
 86 (221)  



31 December 2021 31 December 2020
Lak Jaya
USD’000
ASA India
USD’000
Lak Jaya
USD’000
ASA India
USD’000
 10,704,955 195,950  
Shares held by ASAI Group 10,398,950 176,369  
 306,005 19,581  
 2.86% 9.98%  
31 December 2021 31 December 2020
Lak Jaya
USD’000
ASA India
USD’000
Lak Jaya
USD’000
ASA India
USD’000
Summarised statement of nancial posion:
 3,016 (2,556)  
 86 (221)  
Summarised statement of prot or loss and other comprehensive income:
 2,367 (11,715)  
 (392) (22,289)  
 (11) (2,429)  
 – – – –
Summarised statement of cash ow:
 378 24,145 177 
 (15) (45)  
 252 (38,141)  
 18 (1,401)  
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
159
Financial
Statements
Strategic
Report



33. Subsequent events disclosure
























34. Conngent liabilies
ASA India






Lak Jaya




ASA Pakistan



35. Capital management






JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
160
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
36. Financial instruments

Carrying values Fair values
31 December
2021
USD’000
31 December
2020
USD’000
31 December
2021
USD’000
31 December
2020
USD’000
ASSETS
 237  237 
 3,966 708 3,966 708
Loans and advances to customers 373,242  373,242 
Due from banks 65,259  65,259 
 4,357  4,357 
Cash at bank and in hand 87,951  87,951 
LIABILITIES AND EQUITY
Financial liabilies measured at amorsed cost
Debt issued and borrowed funds 318,674  318,674 
Due to customers 87,812  87,812 
 602  602 
 32,937  32,937 
• 

• 

• 


37. Hedge accounng
Forward contracts






Swaps




















JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
161
Financial
Statements
Strategic
Report

• 
• 



As at 31 December 2021
ASA
Pakistan
USD’000
ASA
Sierra Leone
USD’000
ASA
Myanmar
USD’000
ASA
Tanzania
USD’000
ASA
India
USD’000
ASA
Zambia
USD’000
Total
USD’000
 3,143 170 – – 653 – 3,966
 – 117 21 81 – 383 602
 44,112 3,190 3,000 1,300 14,913 750 67, 265

 44,112 2,081 2,000 1,300 14,913 – 64,406
 – 81 1,000 – – 750 1,831
 – 1,028 – – – – 1,028
Total cash ows 44,112 3,190 3,000 1,300 14,913 750 67, 265


 1,493 308 115 11 28 240 2,195
 – 49 8 – – 88 145
 – 17 – – – – 17
Total amorsaon of forward points 1,493 374 123 11 28 328 2,357


basis spread 2,707 350 352 161 31 132 3,733
for adjustment of net interest on swap – 27 – –
1,047 – 1,074

 2,502 41 662 (152) (1,131) (371) 1,551
 (4,531) (322) (1,009) 7 663 215 (4,977)
Total amounts recognised in OCI during the period 678 96 5 16 610 (24) 1,381
As at 31 December 2020
ASA
Pakistan
USD’000
ASA
Sierra Leone
USD’000
ASA
Myanmar
USD’000
ASA
Tanzania
USD’000
ASA
India
USD’000
Total
USD’000
 – – – – 708 708
  51  70 – 
      

  –    
 –   –  
 – –  – – 
Total cash ows      

      
 –   –  
 – – 11 – – 11
Total amorsaon of forward points   578   

      
for adjustment of net interest on swap – – – –  
      
   870   
Total amounts recognised in OCI during the period      
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
162
Financial Statements connued
Notes to the consolidated nancial statements connued
For the year ended 31 December 2021
37. Hedge accounng 
Changes in fair value of hedging instruments
As at 31 December 2021
Eecve poron:
Recognised
in OCI
USD’000
Hedge
ineecveness:
Recognised
in income
statement
USD’000
Total
USD’000
Cash ow hedge
 691 – 691
Cross-currency interest rate swap 690 – 690
1,381 – 1,381
Changes in fair value of hedging instruments
As at 31 December 2020
Eecve poron:
Recognised
in OCI
USD’000
Hedge
ineecveness:
Recognised
in income
USD’000
Total
USD’000
Cash ow hedge
  – 
Cross-currency interest rate swap  – 
 – 
38. Maturity analysis of assets and liabilies




As at 31 December 2021
Within
12 months
USD’000
Aer
12 months
USD’000
Total
USD’000
Ass ets
Cash at bank and in hand 87,951 – 87,951
Loans and advances to customers 354,671 18,571 373,242
Due from banks 34,294 30,965 65,259
 – 237 237
Property and equipment – 4,085 4,085
 1,013 4,018 5,031
 – 13,362 13,262
 3,313 653 3,966
 6,456 2,483 8,939
Goodwill – 482 482
Total assets 487,698 74,856 562,554
Liabilies
Debt issued and other borrowed funds 204,850 113,824 318,674
Due to customers 87, 241 571 87,812
 7 5,384 5,391
 6,265 – 6,265
 – 2,296 2,296
Lease liability 450 3,009 3,459
 219 383 602
 8,873 24,064 32,937
Provisions 1,136 539 1,675
Total liabilies 309,041 150,070 459,111
Net 178,657 (75,214) 103,443
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
163
Financial
Statements
Strategic
Report
As at 31 December 2020
Within
12 months
USD’000
Aer
12 months
USD’000
Total
USD’000
Ass ets
Cash at bank and in hand  – 
Loans and advances to customers   
Due from banks   
 –  
Property and equipment –  
   
 –  
 – 708 708
   
 –  
Total assets 499,232 80,028 579,260
Liabilies
Debt issued and other borrowed funds   
Due to customers   
   
  – 
Lease liability   
   
   
Provisions  – 
Total liabilies 281,312 190,875 472,187
Net 217,920 (110,847) 107,073
39. Earnings per share





2021
USD’000
2020
USD’000
Net prot aributable to ordinary equity holders of the parent 8,787 
Weighted average number of ordinary shares for basic earnings per share 100,000,000 
USD USD
Earnings per share

 0.09 
 0.09 




2021
USD
2020
USD
Dividend per share n/a 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
164
Financial Statements 
Notes
2021
USD’000
2020
USD’000
Interest and similar income (29) 2
Dividend income 3,529 
Net revenue 3,500 
  (1,045) 
Professional fees  (1,661) 
 (533) 
 10 
Total operang expenses (3,229 ) 
Prot before tax 271 
Prot/total comprehensive prot for the period, net of tax 271 

Statutory statement of prot or loss and other comprehensive Income

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
165
Financial
Statements
Strategic
Report
Notes
2021
USD’000
2020
USD’000
Ass ets
Cash at bank and in hand 383 
Due from banks  20,465 
Investment in subsidiaries  120,684 
  765 
Total assets 142,297 
Equity and liabilies
Equity
Issued capital  1,310 
  92,779 
Total equity aributable to equity holders of the parent 94,089 
Liabilies
  48,208 
Total liabilies 48,208 
Total equity and liabilies 142,297 


Dirk Brouwer Tanwir Rahman
CEO CFO

Statutory statement of nancial posion


JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
166
Financial Statements 
Statutory statement of changes in equity

Issued capital
USD’000
Retained
earnings
USD’000
Total
USD’000
At 1 January 2020 1,310 95,328 96,638
 – (2,820) (2,820)
Total comprehensive loss for the period 1,310 92,508 93,818
Dividend – – –
At 31 December 2020 1,310 92,508 93,818
At 1 January 2021 1,310 92,508 93,818
 – 271 271
Total comprehensive loss for the period 1,310 92,779 94,089
Dividend – –
At 31 December 2021 1,310 92,779 94,089

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
167
Financial
Statements
Strategic
Report
Notes
2021
USD’000
2020
USD’000
Operang acvies
 271 
Adjustment for movement in:
  (491) 
  744 
Net cash ows used in operang acvies 524 
Financing acvies
 (500) 500
Net cash ows used in nancing acvies (500) 500
 24 
 359 
Cash and cash equivalents as at 31 December 383 

Statutory statement of cash ows

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
168
Financial Statements 
Separate nancial statements




40. Total other operang expenses
Notes
2021
USD’000
2020
USD’000

 (1,045) 
Professional fees  (1,661) 
 (533) 
(3,239) 
40.1. Professional fees
2021
USD’000
2020
USD’000
Audit service fee (1,006) 
 (655) 
(1,661) 
40.2. Administrave expenses
2021
USD’000
2020
USD’000
 (533) 
(533) 
41. Investments in subsidiaries
2021
USD’000
2020
USD’000
Investments in subsidiaries
 75,195 
 45,489 
120,684 
Name of Company Country Nature of business 2021 Ownership 2020 Ownership
    
    
42. Other assets
2021
USD’000
2020
USD’000

 482 
Advances and prepayments 283 
765 
43. Issued capital

Notes to the statutory nancial statements

JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Additional
Information
Governance
Report
169
Financial
Statements
Strategic
Report
44. Retained earnings

2021
USD’000
2020
USD’000
Balance at the beginning of the period 92,508 
Dividend – –
Result for the period 271 
Balance at the end of the period 92,779 
Prot for the period
 271 
45. Other liabilies
Notes
2021
USD’000
2020
USD’000
Short-term liabilies
Accrued audit fees 557 
Accrued cost 288 
 3,692 
4,537 
Long-term liabilies
Intercompany loan – 500
  20,465 
 23,206 
43,671 
48,208 
46. Addional cash ow informaon
2021
USD’000
2020
USD’000
Changes in operang assets
Due from banks – 
 (491) 
(491) 
Changes in operang liabilies
 744 
744 
Changes in non-cash items
 – –
– –
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
170
Financial Statements 
Notes to the statutory nancial statements 

47. Maturity analysis of assets and liabilies

As at 31 December 2021
Within
12 months
USD’000
Aer
12 months
USD’000
Total
USD’000
Ass ets
Cash at bank and in hand 383 – 383
Due from banks – 20,465 20,465
Investment in subsidiaries – 120,684 120,684
 765 – 765
1,148 141,149 142,297
Liabilies
 4,537 43,671 48,208
Net (3,389) 97,478 94,089
As at 31 December 2020
Within
12 months
USD’000
Aer
12 months
USD’000
Total
USD’000
Ass ets
Cash at bank and in hand  – 
Due from banks –  
Investment in subsidiaries –  
  – 
  
Liabilies
   
Net   
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Governance
Report
171
Strategic
Report
Additional
Information
Addional Informaon
Alternave performance measures
KPI 2021 2020 Denion
OLP $403.7m
 




OLP/client $181
 

Total debt/OLP 78%
 


Reported net prot
aer tax
$6.4m
 
NIM 28%
 



ROA 1.1%
 

ROE 6.0%
 

EPS (USD) 0.09
 



DPS (US cents) NIL
 


Cost to income 77.4%
 

Client Economic Yield
(‘CEY’)
5.5%
 

Client retenon rate 74.0%
 
number of clients at the end of that period divided by the total number of clients


Number of
new branches
79
70 

Sasfacon survey 93%
 




Carbon footprint 6,382 tonnes
CO
2





JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
172
Addional Informaon 
Alternave performance measures 
KPI 2021 2020 Denion
Social Performance
Index (SP14)
91%
 



Number of clients 2.4m
 
Number of branches 2,044
 
PAR>30 5.2%
 




Number of sta 13,047
 
Client per branch 1,165
 
Employee recruitment 30%
 
Employee sasfacon
rate
85%
 


JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
Financial
Statements
Governance
Report
173
Strategic
Report
Additional
Information
List of abbreviaons
ABBREVIATION DEFINITION
 
Admission 
AGM 
AMBS 
AMSL 
 
ASA Consultancy ASA Consultancy Limited
ASA Kenya ASA Limited
ASA Lanka ASA Lanka Private Limited
 
ASA Myanmar 
ASA Model 
ASA Pakistan ASA Pakistan Limited
ASA Rwanda 
 
ASA Sierra Leone 
 
 
 
 
 
ASAI Coop 
 
ASA India 
 
 
 
 
BC Business Correspondent
Board 
 
CMI 
 
 
 
CGAP 
 
Companies Act 
Company 
CMI Lanka 
CMIC 
CMII 
CMIV 
 
Code 
CSR Corporate Social Responsibility
 
 

 
 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
ASA Internaonal Group plc
Annual Report and Accounts 2021
174
Addional Informaon 
List of abbreviaons 
ABBREVIATION DEFINITION
 
GBP 
GDP 
 Greenhouse Gas
GIIRS 
GMC 
Group 
 
 
 
IR 
ISMS 
 
 
KPI Key Performance Indicator
Lak Jaya 
 
 
 
MBA Philippines 
 
 
 
 
 
 
 
Pinoy Pinoy Consultancy Limited
 
 
 
 
 

RMC 
RMCC 
 
RMU 
Sequoia 
SPM 
 
UK 
UKLA 
UMRA 
 
US or United States 
of Columbia
USD United States Dollar
 
JOB: 38737_ASA_AR21_03_Back_AW PROOF READ BY:
OPERATOR:
Kevin PROOF: 02
SET-UP: Kevin EDIT DATE: 28 April 2022 4:10 PM FIRST READ/REVISIONS
This publicaon has been manufactured using 100%
oshore wind electricity sourced from UK wind.
100% of the inks used are HP Indigo ElectroInk which
complies with RoHS legislaon and meets the chemical
requirements of the Nordic Ecolabel (Nordic Swan)
for prinng companies, 95% of press chemicals are
recycled for further use and, on average 99% of any
waste associated with this producon will be recycled
and the remaining 1% used to generate energy.
[This document is printed on Vision Indigo Oset paper
made of material from well-managed, FSC
®
-cered
forests and other controlled sources.
ASA Internaonal Group plc Annual Report & Accounts 2021
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