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AFRICAN DAWN 2015 Annual Report

Application of principles in King III As required by the JSE Listings Requirements, the full details of Afdawn’s compliance with King III is available on the Company’s website however the following table discloses the area’s in which Afdawn has partially or not applied the King III recommendations as well as an explanatory note outlining the reason in each case. AFRICAN DAWN 20 ANNUAL REPORT 2015 Board and directors King III Principle Explanatory note The chairman of the board is an independent non-executive director The Afdawn’s independent Chairman resigned from the board during the year. The board will consider the appropriate time to appoint an independent non-executive chairman. A framework for the delegation of authority has been established .The board comprises a balance of power, with a majority of non executive directors who are independent The majority of the board comprises executive directors. The board will consider the appropriate time to appoint additional independent / non-executive directors. Evaluations are done informally Evaluations are done informally. Audit committee King III Principle Explanatory note Oversees integrated reporting An integrated report is not prepared. The audit committee oversees the annual financial statements. A combined assurance model is applied to improve efficiency in assurance activities A combined assurance model is not fully implemented. The audit and risk committee does however place reliance on the inputs of management and assurance from the external auditors. As indicated below, the Company does not have a separate internal audit function. Oversees internal audit See internal audit below. Governance of risk King III Principle Explanatory note The board receives assurance regarding the effectiveness of the risk management process The Group has not complied with this principle in full due to not having an internal audit function. Reports from management to the Board and audit committee provide a balanced assessment of the key risks facing the Group. The board constantly focuses on the critical risks facing the organisation during these challenging times. Sufficient risk disclosure to stakeholders The Board has disclosed and discharged its views and responsibility on the effectiveness of the Group’s risk management process in the statement of responsibilities of directors in the Group’s annual financial statements and furthermore discloses the risks facing the Group and the mitigating actions that will either reduce the probability or lessen the impact thereof.


AFRICAN DAWN 2015 Annual Report
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