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AFRICAN DAWN ANNUAL REPORT 2020

Corporate Governance continued

The significant risks are formally communicated to the Board (via the Audit and Risk Committee), in minutes of meetings which ensure that
risks taken are within acceptable tolerance and appetite levels. The risk appetite is the maximum residual risk that Afdawn is willing to take, the
parameters being set by business strategies, business models, review and approving budgets, forecasts and monthly management packs. Risks
pertaining to the Group as a whole, but especially focused on liquidity, asset management, credit risk, market risk and human resources, are noted
and managed by management.

The identified risks, their likelihood of occurrence, severity if occurred, mitigating control and the risk management outcome are discussed on a
monthly basis. Risks are ranked and prioritised to ensure swift response and intervention to risks outside the Board’s tolerance levels. Liquidity
risks are managed on a short term, and long term basis ensuring pairing of known cash in and outflows, with predictions of expected cash flows.
Credit risk is formally managed by the credit committee, who is tasked with managing advances in such a way to ensure repayment of capital plus
earnings, and to assess the outstanding value with expected repayment and manage collections of outstanding debts.

A description of all immediately identifiable risks which are specific to the Group, its industry and/or its ordinary issued shares are available at
www.afdawn.co.za.

7. Social and Ethics Committee
The committee assists the board in monitoring that the Group maintains high levels of good corporate citizenship with all stakeholders and
ensures that the business considers its social and environmental impact and performance. The majority of the members should be non-executive
members however there were not enough Board members and this will be rectified in the future. The committee acts in terms of the delegated
authority of the Board and assists the directors in monitoring the Group’s activities relating to ethics,
stakeholder engagement, including employees, customers, corporate social investment, environmental issues, and black economic empowerment.
The responsibilities of the committee are as follows:
• Monitor the Group’s activities relating to social and economic development, good corporate citizenship, the environment, and health and
public safety;
• Draw matters relating to these activities to the attention of the Board, as appropriate;
• Monitor functions required in terms of the Companies Act and its regulations; and
• Report annually to shareholders on matters within the committee’s mandate.

Changes to Social and Ethics Committee
Ms. A Van der Westhuizen resigned as a member on 31 July 2019
Mr. DS Danker was appointed as a member on 10 October 2019

Committee members
The committee comprised the following members at the end of the reporting period:
Director Designation 17 July 2019
Mr. SM Roper (Chair) Independent non-executive Yes
Mr. D Breedt Executive Director Elite Yes
Mr. DS Danker CEO No
Ms. A Van der Westhuizen Human Resources Manager Yes

The focus was to embark on a process to ensure the ethical culture in the business was represented by appropriate policies.
The Committee has fulfilled its mandate as prescribed by the Companies Regulations to the Companies Act and that there were no instances of
material non-compliance to disclose.
The Social and Risks Committee is satisfied that they have fulfilled their responsibilities in line with the appropriate policies.

8. Compliance with laws and regulations
The Afdawn directors have confirmed that, to the best of their knowledge, Afdawn i) complied with the provisions of the Companies Act, and ii)
operated in accordance with it's memorandum of incorporation during the year under review.

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