Financial statements
The directors are responsible for preparing financial statements
which fairly present the state of affairs of the group at the end of
each financial period.
The board ensures the consistent use of appropriate accounting
policies, supported by reasonable and prudent judgements and
estimates.
The board recognises its responsibility for complying with
International Financial Reporting Standards (IFRS) and has prepared
the financial statements set out in the annual report accordingly.
Auditing
External audit
The primary responsibility of the group’s external auditors is to
express an opinion on whether the financial statements are fairly
presented. The external auditors were also formally engaged by the
board to perform other services on behalf of the group. Fees paid
for these services are disclosed in note 9 to the financial statements and include:
- advice on various tax issues including transfer pricing, VAT and
capital gains taxation
- factual findings reports for tender documentation
- due diligence investigations on acquisition targets
- other advisory services on certain acquisition targets.
The external independent auditors have also reviewed the
non-financial aspects of this annual report to ensure consistency
with their knowledge of the business, particularly those aspects
embodied in King II. They do not, however, express an opinion on
these aspects.
Unless otherwise stated, the non-financial aspects of this financial
report have not been subject to external validation.
Internal audit
The board has established controls and procedures to provide a
high standard, but not absolute assurance, on the accuracy and
integrity of the group’s financial information.
These controls are designed to safeguard, verify and maintain
accountability of the group’s assets and to detect and minimise fraud,
liability and loss or unauthorised use. All joint ventures, associates
and partnerships are subject to the same risk profile procedure as
any other project undertaken by the group.
Grant Thornton is the group’s appointed internal audit service
provider to provide a more comprehensive internal audit function
and ensure that the controls and procedures in place are adequate
and operating as intended.
Through Deloittes, Basil Read runs a round-the-clock dedicated
tip-off service where employees can anonymously, and without fear
of retribution, report any perceived unethical behaviour. This service
has been in operation since 1 August 2008. Each tip-off is
investigated and results fed back to the audit/risk committee.
Pilferage and theft on site is an ongoing problem across our industry.
To address this, Basil Read has engaged a specialist security company
to provide forensic investigation and prosecutorial services when
the need arises.
The Basil Read group does not engage in anti-competitive or cartel
behaviour, including price-fixing, market sharing or collusive
tendering. We fully support the tenets of the Competition Act and
the Competition Amendment Bill.
Basil Read endorses the principles on ethical practices and
organisational integrity set out in King II, and will do all that is
necessary to ensure it operates in line with these principles.
Company secretary
and professional advice
The company secretary is appointed by the board with duties that
include providing guidance to directors on their duties and ensuring
awareness of all relevant legislation and statutory requirements.
The company secretary’s statement of compliance is set out here of the financial statements.
The company secretary is suitably qualified and experienced and is
responsible for, among others, the duties stipulated in section 268G
of the Companies Act and for the certificate to be signed in terms
of subsection (d).
All directors have access to the advice and services of the company
secretary, who is responsible to the board for ensuring that board
procedures are followed.
All directors are entitled to seek independent professional advice
about the affairs of the group at the group’s expense.
Going concern
The board of directors confirms that the group has adequate
resources to continue to operate for the foreseeable future and will
remain a going concern in the year ahead.
Share dealings
Basil Read operates two closed periods from 31 December and
30 June each year until the publication of its year end and interim
results, respectively. To ensure that dealings are not carried out at
a time when other price-sensitive information may be known,
directors and named officers must at all times obtain permission
from the chairman before dealing in the shares of the company.
Dealings in company shares by directors and named officers are,
as required, disclosed to the JSE and published on SENS.
Stakeholders
The directors recognise the importance of strong relationships
with all stakeholders whose needs are balanced against the group’s
accountability to its shareholders. The group subscribes to a policy
of open and timely communication in accordance with the JSE
Listings Requirements. |
