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52
JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
INTEGRATED ANNUAL REPORT 2011
Directors’ Responsibilities and Approval
The directors are required in terms of the Companies
Act 71 of 2008 to maintain adequate accounting records
and are responsible for the content and integrity of the
annual financial statements and related financial infor-
mation included in this report. It is their responsibility to
ensure that the annual financial statements fairly pres-
ent the state of affairs of the group as at the end of the
financial 15 months and the results of its operations and
cash flows for the period then ended, in conformity with
International Financial Reporting Standards.The external
auditors are engaged to express an independent opin-
ion on the annual financial statements.
The annual financial statements are prepared in accor-
dance with International Financial Reporting Standards
and are based upon appropriate accounting policies
consistently applied and supported by reasonable and
prudent judgments and estimates.
The directors acknowledge that they are ultimately re-
sponsible for the system of internal financial control
established by the group and place considerable im-
portance on maintaining a strong control environment.
To enable the directors to meet these responsibilities,
the board sets standards for internal control aimed at
reducing the risk of error or loss in a cost effective man-
ner. The standards include the proper delegation of re-
sponsibilities within a clearly defined framework, effec-
tive accounting procedures and adequate segregation
of duties to ensure an acceptable level of risk. These
controls are monitored throughout the group and all
employees are required to maintain the highest ethical
standards in ensuring the group’s business is conducted
in a manner that in all reasonable circumstances is above
reproach. The focus of risk management in the group is
on identifying, assessing, managing and monitoring all
known forms of risk across the group. While operating
risk cannot be fully eliminated, the group endeavours to
minimise it by ensuring that appropriate infrastructure,
controls, systems and ethical behaviour are applied and
managed within predetermined procedures and con-
straints.
The directors are of the opinion, based on the informa-
tion and explanations given by management, that the
system of internal control provides reasonable assur-
ance that the financial records may be relied on for the
preparation of the annual financial statements. However,
any system of internal financial control can provide only
reasonable, and not absolute, assurance against material
misstatement or loss.
The directors have reviewed the group’s cash flow fore-
cast for the 15 months to 30 September 2012 and, in the
light of this review and the current financial position,
they are satisfied that the group has or has access to ad-
equate resources to continue in operational existence
for the foreseeable future.
The external auditors are responsible for independently
reviewing and reporting on the group’s annual financial
statements. The annual financial statements have been
examined by the group’s external auditors and their re-
port is presented on page 51.
The annual financial statements set out on pages 52 to
116, which have been prepared on the going concern
basis, were approved by the board on 15 December 2011
and were signed on its behalf by:
TP Gregory
DP van der Merwe