Audit Committee report

Membership and Meetings

The Audit Committee comprised of David Hamid (Chairman) and Walter Koch. David Hamid and Walter Koch are both independent non-executive directors. The Chairman has recent and relevant experience, including 6 years on the board of a FTSE 100 quoted company in the United Kingdom.

The committee met 5 times during 2011, with the Chairman attending all meetings and Walter Koch all except one. Representatives of the external auditors, the CFO and Head of Internal Audit were invited to attend each meeting to ensure that Committee members were fully informed and supported in carrying out their duties. During the year the members of the committee met with the external auditors in private.

Role of the Committee

The Board has delegated the Audit Committee responsibility to review and monitor the integrity of financial reporting and any formal announcements relating to the Group’s financial performance; review critical accounting policies and financial reporting judgements; review the Group’s internal control systems; monitor the effectiveness of the Group’s internal audit function, reviewing and approving their annual plan; complete an annual assessment of the external auditors, review and monitor their independence, approve the external auditors’ remuneration and terms of engagement and make recommendations in respect of the reappointment. The full terms of reference of the Audit Committee are available on the corporate website.

Key Matters Considered

The key matters considered by the Committee during the year included: interim, half-yearly and annual financial statements; recommendations from external auditors on accounting, tax and internal control issues (and managements responses to these recommendations); reviewed the level of resources and training allocated to the internal audit department to ensure the audit plan could be delivered effectively (as part of this review, additional resources will be added and internal audit software will be utilised to support the group in 2011); assess reports and updates on the key findings from internal audit; reviewed with management and the external auditor the deadlines for IFRS reporting and supported the continued improvement on the timeliness of the annual reporting; carried out an assessment of the audit committee and followed up on recommendations made during this assessment.

David Hamid,
Chairman of the Audit Committee