TO THE MEMBERS OF EXXARO RESOURCES LIMITED
The directors of the company are responsible for maintaining adequate accounting
records, the preparation of the annual financial statements of the company and the
group and to develop and maintain a sound system of internal control to safeguard
shareholders' investments and the group's assets. In presenting the accompanying
financial statements, International Financial Reporting Standards have been followed,
applicable accounting policies have been used and prudent judgements and estimates
have been made.
In order for the directors to discharge their responsibilities, management has developed
and continues to maintain a system of internal control aimed at reducing the risk of
error or loss in a cost-effective manner. Such systems can provide reasonable but
not absolute assurance against material misstatement or loss. The directors, primarily
through the audit, risk and compliance committee which consists only of non-executive
directors, meet periodically with the external and internal auditors, as well as executive
management, to evaluate matters concerning accounting policies, internal control,
auditing, financial reporting and risk management. The group's internal auditors
independently evaluate the internal controls and co-ordinate their audit coverage with
the external auditors. The external auditors are responsible for reporting on the financial
statements. The external and internal auditors have unrestricted access to all records,
property and personnel as well as to the audit, risk and compliance committee. The
directors are not aware of any material breakdown in the functioning of these controls
and systems during the year under review.
The directors are of the opinion, based on the information and explanations given
by management and the internal auditors, and on comments made by the external
auditors on the results of their audit conducted for the purpose of expressing their
opinion on the annual financial statements, that the internal accounting controls are
adequate, such that the financial records may be relied on for preparing the financial
statements and maintaining accountability for assets and liabilities.
The directors have reviewed the group's financial budgets with their underlying business
plans for the period to 31 December 2009. In the light of the current financial position
and existing borrowing facilities, they consider it appropriate that the annual financial
statements be prepared on the going-concern basis.
Against this background, the directors of the company accept responsibility for
the annual financial statements, which were approved by the board of directors on
20 February 2009 and are signed on its behalf by: |
