Report of the Audit Committee

The activities of the Audit Committee (the committee) are determined by its terms of reference. The committee considers that it has adequately performed its functions in terms of its mandate, the King Code of Governance Principles for South Africa 2009, and the Companies Act, No 71 of 2008, as amended.

The committee carried out its duties by reviewing the following on a quarterly basis:

• internal audit reports
• financial management reports
• dashboard reflecting key financial, property and operational information/indicators
• information technology reports pertaining specifically to financial reporting related matters
• annual returns and tax status reports
• external audit reports
• Risk Management Committee minutes.

The aforementioned information, together with the interactions with persons attending the meetings in an ex officio capacity, collectively enabled the committee to conclude that the systems of internal financial control had been designed effectively and were operating effectively during the financial period under review.

Furthermore, the committee is satisfied:

• with the independence of the external auditor, including the provision of non-audit services and compliance with the company policy in this regard. The external auditor attended all meetings of the committee
• with the terms, nature, scope and proposed fee of the external auditor for the financial year ended 30 June 2015
• with the annual financial statements and the accounting practices utilised in the preparation thereof and have recommended the financial statements for approval to the Board
• with the company’s continuing viability as a going concern, which it has reported to the Board for its deliberation
• that the company’s Financial Director had the necessary expertise and experience to carry out his duties.

No concerns and complaints were received from within or outside the Group relating to accounting practices and internal financial controls, and the content or auditing of the company’s financial statements.

The committee assesses its performance on an annual basis to determine whether or not it had delivered on its mandate and continuously enhanced its contribution to the Board. The assessment takes the form of a questionnaire, which is independently completed by each member of the committee. The composition of the self-assessment questionnaire, as well as the consolidation of the related results, is the responsibility of the Company Secretary in conjunction with the Head of Internal Audit and Risk Management.

LA Finlay
Audit Committee Chairman

25 August 2015
Sandton