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FINANCE & GENERAL PURPOSE COMMITTEE REPORT Key matter considered Committee actions Committee activities during 2016 Credit ratings • Upon the recommendation of the Committee, the Company was rated by Moody’s and Standard and Poor’s and received the highest standalone ratings achieved by a Nigerian company. The rating is a reflection of the inherent strength of the business as well as the rating agencies’ belief in the Company’s strategy, robust governance and conservative financial policies. Regulatory compliance • Monitored and responded to changes in regulatory environment. In that regard, they established appropriate structures, education and training and communication and measurement of key performance indicators relevant to compliance; detecting potential breaches and taking appropriate actions to ensure non-occurrence. • Provided updates on international compliance, and noted key risks and mitigating actions, and the continued support from Head Office to the subsidiaries SAP ERP Risk management Investments • Authorised the roll-out of SAP ERP, an Enterprise Resource Planning system, which incorporates the key business functions of an organisation. This has been successfully deployed to subsidiaries across Africa. • Reviewed and satisfied itself that the various structures, polices and programs established and implemented in the company were sufficient to manage and mitigate financial risk in the Company’s business. • Reviewed and made recommendation to the Board on matters pertaining to major investments, acquisitions, divestitures, joint ventures or similar transactions, and encouraged management to develop policies to guide such transactions. Other key matters considered Significant issues in relation to the financial statements considered by the Committee during the year include: • Pricing strategy and impact on revenue and profits • Tax impact and tax exemption status of entities within the Group, and total tax liability of the Group • Consideration of the increase in non-current assets and the appropriateness of the capitalisation of significant expenditures • Review of the carrying amount of Group assets including any potential impairment loss to be recognised during the year • Review of receivables for impairment and revalidation of the Group’s “cash and carry” sales model (except for a few credit customers who are backed with bank guarantees), which has historically minimised losses on receivables • Review of the currency hedging strategies, FX exposures and management-proposed actions to mitigate FX exposures and their impacts on the Company’s finances • Review the effect of inflation on the activities of the company and deliberate future economic outlook. 114 Annual Report 2016 In addition, the Committee assessed cash flow projections and compared these with cash balances and committed facilities available to enable them to recommend that it was appropriate to adopt the Going Concern basis for the preparation of the financial statements. The Committee also deliberated and recommended focus and financial strategy to the Board, identified the current national threat and satisfied itself of the Company’s level of preparedness and areas for improvement for 2017. I am satisfied that the Committee, working closely with senior management and the external auditors, has carried out its duties effectively and to a high standard in 2016. Going forward, we will also focus on the effectiveness of the finance function including ensuring adequate protection of the company’s financial assets. Olusegun Olusanya Chairman of the Finance & General Purpose Committee 27th February, 2017

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