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Corporate governance

Pick n Pay Stores Limited

Audit committee report

The committee discharges its Board responsibilities by:

• Meeting at least twice a year to review the Group’s financial results, to receive and review reports from both the internal and external auditors, and to meet with management to review their progress on identifying and addressing key risk areas within the business;
• Reporting to the Board at the next meeting, which is always held within a week of the respective committee meeting;
• Meeting separately with the internal and external auditors to confirm they are receiving the full co-operation of management; and
• The committee Chairman meets regularly with key executives to keep abreast of emerging issues.

The committee discharges all audit committee responsibilities of all the subsidiary companies within the Group. To help it discharge this responsibility, financial review committees, chaired by the Chief Finance Officer, reviews, in detail, the results of all material operating subsidiary companies with the external auditors and management of the respective subsidiary. These review committees report their findings to the Group audit committee.

The external and internal auditors have unrestricted access to the committee and all of its members throughout the period.

Independence of external auditors

The audit committee is satisfied as to the independence of the Group’s external auditors, KPMG Inc., and its respective audit partners. The committee nominates KPMG as external auditor for the appointment by shareholders at the annual general meeting.

POLICY ON NON-AUDIT SERVICES

All non-audit services provided by the Group’s external auditors are pre-approved by the audit committee. The total fee for non-audit services provided should not, under normal circumstances, exceed 50% of the total auditor’s remuneration.

Expertise and experience of Chief Finance Officer and finance function

The audit committee is satisfied that Bakar Jakoet has the appropriate expertise and experience for his position of Chief Finance Officer of the Group. In addition, the committee is also satisfied that the composition, experience and skills of the finance function meet the Group’s requirements.

Approval of the audit committee report

The committee confirms that it has functioned in accordance with its charter for the 2013 financial period and that its report to shareholders has been approved by the Board.

Jeff van Rooyen
Chairman: Audit committee

22 April 2013

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