Page 41 - Integrated Annual Report

Financial statements and going concern:
The committee has:
• reviewed the separate and consolidated financial statements of the company for the year ended 31 March 2021 and is satisfied that they comply with International Financial Reporting Standards and the requirements of the Act, that the accounting policies used are appropriate and that all procedures operated effectively in terms of the JSE Listings Requirements;
• reviewed the legal matters that could have a significant impact on the group’s financial statements and the key audit matters contained in the external audit report;
• reviewed a documented assessment by management of the going concern premise of the company and has concluded that the HCI group is a going concern and that the consolidated annual financial statements have been prepared in accordance with the going concern concept. The board has accepted the recommendation of the committee that the company is operating as a going concern and has reported that status in the 2021 annual financial statements;
• considered the JSE’s most recent report on the proactive monitoring of financial statements, and where necessary, those of previous periods. The committee has taken appropriate action to respond to the findings as highlighted in the JSE’s report when preparing the annual financial statements for the year-ended 31 March 2021;
• reviewed the establishment of appropriate financial reporting procedures;
• reviewed the areas of focus in the financial statements. The committee is of the view that where significant judgements are involved in the preparation of the financial statements that could have a material impact on those financial statements, the financial director, management and the committee have exercised appropriate care and skill in making those judgements;
• reviewed the key audit matters identified by the external auditor and is satisfied that they have been adequately addressed.
The following group key audit matters have been detailed in the audit opinion:
- casino licences impairment assessment;
- fair value of Investment Property;
- goodwill impairment assessment; and
- Investment in Associate - Tsogo Sun Hotels -
Impairment assessment.
The following company key audit matter has been detailed in the audit opinion:
- Recoverability of investments in subsidiaries.
• confidence that the internal control system and governance structures that have been put in place, have operated effectively during the year. As a result of this, which ensured that there were no significant matters for the independent auditors to address during their audit of the financial statements or to report in their auditor’s report.
Sustainability reporting:
The committee considered the company’s sustainability information, as disclosed in this report, and has assessed its consistency with operational and other information known to committee members. The committee is satisfied that the sustainability information is reliable and consistent with the financial results.
Other matters:
• The committee receives and deals with complaints and concerns from within and outside the company relating to all matters within its terms of reference. No complaints were received during the current or prior year.
• The committee has the right to obtain independent outside professional advice to assist with the execution of its duties, at the company’s expense;
• The committee has decision-making authority regarding its statutory duties and is accountable in this regard to both the board and the shareholders. On all responsibilities delegated to it by the board, other than its statutory duties, the committee makes recommendations for approval by the board; and
• The chairperson of the committee attends annual general meetings and is available to answer any questions in relation to matters pertaining to the responsibilities of the committee.
Recommendation of the integrated annual report:
The committee has evaluated the integrated annual report of Hosken Consolidated Investments Limited and the group for the period ended 31 March 2021 and, based on the information provided to the committee, the committee recommends the adoption of the annual financial statements and integrated annual report by the board.
MH Ahmed
Chairperson: Audit and risk committee 27 July 2021
HOSKEN CONSOLIDATED INVESTMENTS LIMITED
INTEGRATED ANNUAL REPORT 2021 39