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AFRICAN DAWN ANNUAL REPORT 2020

Audit and Risk Committee Report

Annual Financial Statements For the year ended 29 February 2020

Introduction

The Audit and Risk Committee (“the Committee”) has pleasure in submitting its report, as required by section 94 of the Companies Act, 2008, as
amended, and by the JSE Listings Requirements. The Committee acts for Afdawn Group of companies and is accountable to the Shareholders and
the Board. It operates within its documented charter and complies with all relevant legislation, regulation and executes its duties in terms of
substantially al the King IV™ requirements.

The Committee was appointed at the AGM on 7 August 2019.
Committee report

The Committee continues to focus on ensuring effective operation, through sound control and compliance. In the period under review the
Committee has focused its attention on the critical risks facing the Group and sustainability of the Group. It has been another difficult year and
cash flow was a particular problem with the directors assisting the Group to remain liquid. The Group does not have an internal audit function and
the policy is to obtain external specialists to review areas of concern.

The Committee has reviewed the going concern assessment on which the Board has confirmed that it concludes that the Group and the Company
are both going concerns. The Committee agrees that this conclusion is appropriate and that the basis of accounting for the Group and the
Company as a going concern is appropriate.

The Committee has reviewed the Key Audit Matters in the Auditors report and confirm that they agree with the issues that have been raised.

1. Purpose

The main purpose of the Committee is to assist the Board in the oversight of:
• the integrity of the financial statements;
• the effectiveness of internal control over financial reporting;
• independence and qualification of the independent registered auditor;
• the company’s compliance with legal and regulatory requirements;
• approving the expertise of the financial director; and
• review of the key Audit Matters and confirm that they concur with the issues the Committee believe are important.

2. Composition of the Committee

The members of the Committee are all independent non-executive directors of the Group and include:
Name Qualification
Ms. HH Hickey* CA(SA)
Ms. V Lessing
Mr. SM Roper CA(SA)
Mr. B Stagman** CA(SA)
*Ms. HH Hickey resigned as a member on 31 August 2019
**Mr. B Stagman was appointed as a member on 30 October 2019
The Committee meetings were attended by invitees throughout the period. All the directors were invited to attend the meetings. The Financial
Director was required to attend. The Committee is satisfied that the members thereof have the required knowledge and experience as set out in
Section 94(5) of the Companies Act and Regulation 42 of the Companies Regulation, 2011.

3. Meetings held by the Committee
The Committee performs the duties laid upon it by Section 94(7) of the Companies Act of 2008 by holding meetings with the key role players
on a regular basis and by the unrestricted access granted to the external auditors. The Committee held three meetings during the period. The
attendance of the meetings is set out below:

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