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AFRICAN DAWN ANNUAL REPORT 14

Audit Committee Report continued External auditor The Committee nominated Grant Thornton for reappointment as external auditors of the Afdawn group. The Committee satisfied itself through enquiry that the external auditors, Grant Thornton and Mr EFG Dreyer, the designated auditor, are independent as defined by the Companies Act and as per the standards stipulated by the auditing profession. The Audit Committee in consultation with executive management, agreed to the terms of the engagement. The audit fee for the external audit has been considered and approved for the 2014 financial year end, taking into consideration such factors as the timing of the audit, the extent of the work required and the scope. The Committee approved a non-audit services policy which determines the nature and extent of any non-audit services which Grant Thornton may provide to the company. The policy allows for limited tax and corporate governance advice. Financial statements The Committee has evaluated the group financial statements for the year ended 28 February 2014 and, based on the information provided to the committee considers that the group complies in all material respects, with the requirements of the Companies Act and International Financial Reporting Standards (IFRS). The requirements of King III are continuously being assessed and improved on with significant issues resolved. Accounting practices and internal control Based on the available and communicated information together with discussions with the independent external auditor, the committee is satisfied that there was no material breakdown in the internal accounting controls during the financial year under review. The Committee reviewed the auditor’s management letter and can report that there were no material issues requiring immediate additional attention. The value added issues raised are receiving the appropriate attention to ensure increased effectiveness in all areas of financial and business systems and controls. Financial Director On 10 April 2013, Mr. TF Kruger stepped down as Chief Executive Officer and was appointed as financial director on this date and continued in this role until his resignation on 1 February 2014. Mr. EA van Heerden was appointed as Financial Director on 27 March 2014. The audit committee has assessed and is satisfied that the Financial Directors, have the appropriate skill, expertise and experience as required by the JSE listings requirements 3.84(b). Company Secretary Mr. W Somerville (on behalf of William Somerville Governance Services cc) resigned as company secretary on 31 July 2014 and Mr. A Rich (on behalf of Statucor Proprietary Limited) was appointed in his stead. In terms of paragraph 3.84 (i) and ( j) of the JSE Listings Requirements the board has satisfied itself that the company secretaries including the individual shareholders and directors of the juristic person possess the appropriate expertise and experience required and considers him qualified to perform his duties in accordance with applicable legislation and is fit and proper for the position. There is an arm’s-length relationship between itself and the company secretary and he is not a director on the board. On behalf of the audit committee. Ms. HH Hickey Chairman Audit Committee AFRICAN DAWN 2 4 ANNUAL REPORT 2014


AFRICAN DAWN ANNUAL REPORT 14
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