Senwes Annual Financial Statements 2022 | Page 6

SENWES ANNUAL FINANCIAL STATEMENTS 2022

Report of the Senwes Audit Committee

We are pleased to present our report for the financial year ended 30 April 2022 in accordance with section 94 ( 7 )( f ) of the Companies Act .

The manner in which the Audit Committee carried out its duties is referred to in the corporate governance report in respect of roles and responsibilities and mandate .

The committee consists of five non-executive directors , three of whomare independent , and meets at least three times per annum , as per the committee mandate and terms of reference .

AJ Kruger - B . Compt ( Hons ), CA ( SA ) 3 / 3 None r

AG Waller - B . Com ( Hons ), CA ( SA )

External auditor

2 / 3 Appointed 26 August 2021

The committee is satisfied that the external auditor , Ernst & Young Inc ., is independent from the group , as determined in terms of the Companies Act , which includes consideration of compliance with criteria relating to independence or conflicts of interest as prescribed by the Independent Regulatory Board of Auditors .

The committee , in consultation with executive management , agreed to the engagement letter , terms , audit plan and budgeted audit fees for the 2022 financial year .

A formal written policy and procedures ( incorporating an authority matrix ) governs the process whereby the external auditor is considered for non-audit services . The committee approved the terms of the written policy for the provision of non-audit services by the external auditor and approved the nature and extent of non-audit services that the external auditor may provide .

The committee recommended Ernst & Young Inc . for reappointment as the external auditor and Mr . Derek Engelbrecht as the designated audit director , for the 2023 financial year .

Internal financial controls

The committee is of the opinion that the Senwes Group ’ s system of internal financial controls is effective and forms a basis for the preparation of reliable financial statements . This opinion is based on : * the results of the formal documented review of the design , implementation and effectiveness of the Senwes Group ’ s system of internal financial controls conducted by the internal audit function during the 2022 financial year ; * the information and explanations given by management ; and * the discussions held with the external auditor on the results of its audit .

Financial statements ( including accounting practices )

The committee reviewed the financial statements of the company and the Senwes Group and is satisfied that the results for the year ended 30 April 2022 have been prepared in accordance with the International Financial Reporting Standards ( IFRS ) and the requirements of the Companies Act of South Africa .

Financial function and Chief Financial Officer review

The committee is satisfied that the chief financial officer of Senwes has appropriate expertise and experience .

The committee has considered and is satisfied with the appropriateness of the expertise and adequacy of resources of the Senwes Group ’ s financial function and experience of the senior members of management responsible for the financial function .

Mandate delegated by the Board

The committee fulfils an oversight role regarding the company ’ s integrated annual report and the reporting process , including the system of internal financial control . It is responsible for ensuring that the company and the Senwes Group ’ s internal audit function is independent and has the necessary resources , standing and authority within the organisation to enable it to effectively perform its duties . Furthermore , the committee oversees co-operation between the internal and external auditor and serves as a link between the board of directors and these functions . During the year under review , the committee and the chairman met with the external auditor and with the head of internal audit separately .

The committee is satisfied that it has complied with its statutory , governance and other responsibilities . a

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