The Public Finance Management Act requires the directors to
ensure that Eskom Holdings Limited (Eskom) and the group
keep full and proper records of their financial affairs. The
financial statements should fairly present the state of affairs of
Eskom and the group, its financial results, its performance against
predetermined objectives and its financial position at the end of
the year in terms of International Financial Reporting Standards.
The financial statements are the responsibility of the directors.
The external auditors are responsible for independently auditing
and reporting on the financial statements.
The financial statements of Eskom and the group have been
prepared in terms of International Financial Reporting Standards
and the Companies Act. These financial statements are based on
appropriate accounting policies, supported by reasonable and
prudent judgements and estimates and are prepared on the
The directors have reviewed the group’s cash flow forecast for
the year ending 31 March 2009 and the five year forecast to
31 March 2013. In assessing this forecast cognisance was taken
of the risks and challenges facing the group. In light of this
review and the current financial position, the board is satisfied
that the group has access to adequate resources to continue in
operational existence for the foreseeable future based, inter alia,
on the Nersa tariff increase and indicative shareholder support
for additional funding.
To enable the directors to meet the above mentioned
responsibilities, the Eskom board of directors sets standards and
implements systems of internal control. The controls are designed
to provide cost-effective assurance that assets are safeguarded,
and that liabilities and working capital are efficiently managed.
Policies, procedures, structures and approval frameworks provide direction, accountability and division of responsibilities, and
contain self-monitoring mechanisms. The controls throughout
Eskom focus on those critical risk areas identified by operational
risk management and confirmed by executive management.
Both management and the corporate audit department closely
monitor the controls, and actions are taken to correct deficiencies
as they are identified.
Based on the information and explanations given by management
and the corporate audit department and discussions held with
the independent external auditors on the results of their audits,
the directors are of the opinion that the internal accounting
controls are adequate to ensure that the financial records may
be relied upon for preparing the financial statements, and that
accountability for assets and liabilities is maintained.
Nothing significant has come to the attention of the directors
to indicate that any material breakdown has occurred in the
functioning of these controls, procedures and systems during the
year under review.
In the opinion of the directors, based on the information available
to date, the financial statements fairly present the financial position
of Eskom and the group at 31 March 2008 and the results of its
operations and cash flow information for the year.
The financial statements of Eskom and the group for the year
ended 31 March 2008 have been approved by the board of
directors and signed on its behalf on 25 June 2008 by