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AFRICAN DAWN Annual Report 2016

Audit Committee Report Annual Financial Statements For the year ended 29 February 2016 Introduction The Audit Committee (“the Committee”) has pleasure in submitting its report, as required by section 94 of the Companies Act, 2008, as amended, and by the JSE Listings Requirements. The committee acts for the Company and all its subsidiaries and is accountable to the Shareholders and the Board. It operates within its documented charter and complies with all relevant legislation, regulation and executes its duties in terms of substantially all the King III requirements. The committee was appointed by the AGM on the 15 January 2016. 1. Audit committee report The Committee continues to focus on ensuring effective operation, through sound control and compliance. In the period under review the Committee has striven to uphold and improve upon the existing base with specific attention to risk management and sustainability within the group. A great deal of attention was given to the IFRS reporting process and time was spent on ensuring that the financial statements are appropriately disclosed. The controls that were implemented were once again reviewed and the board and audit committee believe they have the appropriate assurance that the results as audited are appropriate. The company does not have an internal audit function and the policy is to obtain external specialists to review areas of concern. Together with the Board, it was once again agreed to obtain an independent external valuation of the debtors’ book. External expertise to assist with the IFRS reporting of the issues was also maintained as it was felt that it was important to ensure that the Annual Financial Statements fairly represent the results. The Committee and the Board have regular discussions to monitor and discuss both the progress and implications of this process and now believe that the past problems have been adequately resolved. The Committee assures shareholders that it continues to take all the steps necessary to ensure the appropriate process is being followed to prevent any further problems from arising. The Committee has reviewed the going concern assessment on which the Board has confirmed that it concludes that the group and the company are both going concerns. The Committee agrees that this conclusion is appropriate and that the basis of accounting for the group and the company as a going concern is appropriate. There are still some tough times ahead for the group but the committee is confident that the business is sustainable at least for the next twelve months. Purpose The main purpose of the committee is to assist the Board in the oversight of: • the integrity of the financial statements; • the effectiveness of internal control over financial reporting; • independence and qualification of the independent registered auditor; • the company’s compliance with legal and regulatory requirements; and • approving the expertise of the financial director. 2. Composition of the Audit Committee The members of the audit committee are all independent non-executive directors of the group and include: Name Qualification Ms. HH Hickey CA(SA) Ms. V Lessing Mr. SM Roper CA(SA) The Committee meetings were attended by invitees throughout the period. All the directors were invited to attend the meetings. The Financial Director was required to attend. The committee is satisfied that the members thereof have the required knowledge and experience as set out in Section 94(5) of the Companies Act of 2008 and Regulation 42 of the Companies Regulation, 2011. AFRICAN DAWN ANNUAL REPORT 2016 23


AFRICAN DAWN Annual Report 2016
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