Massmart is a managed portfolio of four divisions, each focused on high-volume, low-margin, low-cost distribution of mainly branded consumer goods for cash, through 376 stores in 12 countries in sub-Saharan Africa. We are a South African retailer and wholesale distributor, with 346 stores in South Africa and 30 stores in other countries in sub-Saharan Africa.

 

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Scope of the Report

The scope of the Massmart Integrated Annual Report includes the Group’s four divisions and key functions. With respect to comparability, all significant items are reported in a consistent manner with the previous financial year, with no major restatements. It must be noted that the current year was a 53-week period. Where applicable, this report has been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards, the JSE Limited Listings Requirements and the requirements of the Companies Act, No. 71 of 2008, as well as the King Code of Governance Principles.

Materiality

Management’s interpretation of materiality has been applied in determining the financial and non-financial content and disclosure in this report.

Assurance

Massmart applies a combined assurance model, which seeks to optimise the assurance obtained from management and internal and external assurance providers.

Management provides the Massmart Board with assurance that it has implemented and monitored the Group’s risk management plan, and that it is integrated into day-to-day activities. Management is responsible for monitoring and implementing the necessary internal controls.
The internal audit function, overseen by the Group’s Audit Committee, assesses the effectiveness of Massmart’s system of internal control and risk management. The Group receives external assurance on certain aspects of the business. For example, our External Auditors, Ernst & Young Inc. provide an opinion on the fair presentation of the Group’s Annual Financial Statements.

The Group Audit Committee ensures that the combined assurance model introduced by King III is applied to provide a co-ordinated approach to all assurance activities and addresses all the significant risks facing the Group. The committee also monitors the relationship between the external service providers and the Group.

Approval of the Integrated Annual Report

The Massmart Board of Directors confirm that they have collectively assessed the content of this Integrated Annual Report and have approved it for release to Shareholders.

This Massmart Integrated Annual Report for December 2013 contains audited abridged AFS which comprise a summary of the audited AFS prepared by the Company for the year ended December 2013.

The preparation of the Group’s consolidated results, from which these summarised AFS were derived, was supervised by the Group Financial Director, Ilan Zwarenstein, CA(SA). These results have been audited in compliance with any applicable requirements of: the Companies Act and were prepared under section 29(1) of this Act; requirements of the JSE Limited Listings Requirements for abridged reports; as well as the information required by IAS 34 Interim Financial Reporting.

A full set of the Group AFS can be found here. The summarised AFS for the year ended December 2013, as described above, were approved by the Board of Directors on 10 April 2014 and were signed on its behalf by:

 

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GM Pattison

Chief Executive Officer

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I Zwarenstein

Group Financial Director