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MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
Corporate governance review
(continued)
Matters for
noting
Financial impact on annual
financial statements
Conclusions reached
FutureFit
restructuring
Staff restructure expense –
R164m
The audit committee acknowledges the
remuneration committee reviews and
approves the basis of the calculation for
voluntary severance packages
Having reviewed the external auditor’s
reporting as well as disclosure in the annual
financial statements, the audit committee
concluded that the accounting of the staff
restructure expense in the annual financial
statements is appropriate
Provisions
DStv Media Sales (DMS) tax
settlement of R5,9m with Federal
Inland Revenue Service (FIRS)
during the year, the excess tax
penalties and interest amounting
to R27m have been reversed
M-Net has disclosed a contingent
liability of R342m in relation to
potential liabilities
The audit committee reviewed
management’s update on the group’s
assessment on these matters and disclosure
adopted in relation to contingent liabilities
Having reviewed management and the
external auditor’s reporting on these matters,
and disclosure in the annual financial
statements, the audit committee was
satisfied with the approach adopted in the
annual financial statements
Report of the audit committee
(continued)
for the year ended 31 March 2018
Special review on the ANN7
matter
The audit committee together with the risk
committee formed a special joint audit and
risk committee for purposes of conducting
the special review of the ANN7 matter. For the
purposes of this review, members’ attendance
at the special joint audit and risk committees
can be found on
page 76.Internal audit
The audit committee has oversight of the
group’s annual financial statements and
reporting process, including the system of
internal financial control. It is responsible for
ensuring that the group’s internal audit
function, as outsourced to the Naspers internal
audit team, is independent and has the
necessary resources, standing and authority
in the organisation to discharge its duties. The
committee oversees cooperation between
internal and external auditors, and serves as a
link between the board of directors and these
functions. The head of internal audit reports
to the chair of the audit committee, with
administrative reporting to the Naspers chief
audit executive. An assessment of the
effectiveness of the internal audit function, as
well as the head of internal audit, is performed
annually by the committee. Based on the
assessment, the committee is of the opinion
that the internal audit function, as well as the
head of internal audit, is effective.
Effectiveness of the company’s
internal financial controls
The committee reports to the board that it is of
the opinion that, based on enquiries made and
the reports from the internal and external
auditors, the risk management processes and
systems of internal control of the company were
effective for the year under review. No material