AFRICAN DAWN ANNUAL REPORT 2019 Application of principles in King IV™ continued 20 Governance Functional Areas Principle 11: The governing body should govern risk in a way that supports the organisation in setting and achieving its strategic objectives. The governing body should The risk governance encompasses both the risk and assume responsibility of risk opportunities when developing strategy and the potential by setting direction for how positive and negative aspects thereof. risk should be approached and addressed in the organisation. With the Company having been through extremely trying times since the removal of the previous directors and the sale of the assets that were perfected when the loans were not paid the key risks have related to resolving the challenges that remained, repayment of debt, the SARS compromise and looking for opportunities to grow the business. Key risks that were always in the business plan related to financial risks in the Elite business and the going concern and long term sustainability of the Company. The Board is of the opinion that the key challenges are now being resolved. There are new opportunities now that the SARS debt has been paid. Principle 12: The governing body should govern technology and information in a way that supports the organisation setting and achieving its strategic objectives. The governing body should The use of technology is key to the business models that assume responsibility for the have been part of the business in the past few years. It is governance of technology part of the strategy and has been used effectively. and information by setting the direction and approach of addressing IT in the organisation. The Board has been kept up to date on the development and success of the IT used in its subsidiaries. There has been substantial IP embedded in IT. The management and governance of IT has been a big part of the responsibility of the executives in the subsidiaries. IT set-up and how it is managed. Once the Company grows it will be necessary to implement even more stringent IT governance into the Group. An IT charter is currently being considered. Principle 13: The governing body should govern compliance with applicable laws and adopted, non-binding rules, codes and standards in a way that supports the organisation being ethical and a good corporate citizen. The governing body has been committed to ensuring that compliance is adhered to. The Board does not have an internal audit function and once it is large enough it will reconsider this. However, the company secretary, JSE sponsor and lawyers have been used to obtain advice and ensure compliance has been adhered to. In addition, the subsidiaries have had the responsibility of ensuring that they comply with all the rules, regulations and codes that were required of them. Once funding is available an integrated report will be introduced. The annual reports include these areas of non-compliance.
AFDAWN AR FINAL 2019
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