On behalf of the Massmart Board of Directors, I am proud to present Massmart’s 2015 Integrated Annual Report.
We have a diverse range of stakeholders including shareholders, customers, employees, suppliers and communities, with varied information needs. This Integrated Annual Report is our primary report to stakeholders and is aimed at addressing our stakeholders’ interests.
It aims to demonstrate how the material matters in relation to our financial and non-financial performance, governance, risks and strategy can lead to the creation of value in the short, medium and long term.
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 material restatements. Where applicable, this report has been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), specifically IAS 34 Interim Financial Reporting, Interpretations issued by the International Accounting Standards Board, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listing Requirements and the requirements of the South African Companies Act, No. 71 (as amended), as well as the King Code of Governance Principles (King III).
Content of the Report
The Massmart Integrated Annual Report is our primary report to stakeholders and, as per the practice adopted last year, includes summarised financial information.
Management’s interpretation of materiality, being those transactions, balances and information that are significant in terms of Rand value, the Group’s risk profile or the Group’s strategic intent, such that Management believe omission of disclosure thereof would influence the Group’s stakeholders’ decisions, has been applied in determining the financial and non-financial content and disclosure in this Report.
Massmart applies a combined assurance model, introduced by King III, which seeks to optimise the assurance obtained from Management and internal and external assurance providers. The Group’s Risk Committee monitors all the significant risks facing the Group and with the help of Management, provides the Massmart Board of Directors with assurance that it has implemented and monitored the Group’s risk management plan, and that it is integrated into day-to-day activities. They are also 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. The Group receives external assurance on certain aspects of the business. For example, the Group’s external auditors, Ernst & Young Inc. provide an opinion on the fair presentation of the Group and Company Annual Financial Statements. The Group’s Audit Committee ensures that the combined assurance model is applied throughout the Group to provide a co-ordinated approach to all assurance activities and this Committee also monitors the relationship between the external service providers and the Group.
For more information regarding the Group Audit Committee’s mandate, including the Committee’s assessment of the expertise of the Chief Financial Officer and finance function; the appropriateness of the Group and Company Annual Financial Statements, the accounting practices and the internal financial controls of the Group; and the Committee’s recommendation of this Integrated Annual Report for approval by the Massmart Board of Directors, refer to The Audit Committee
Approval of the Integrated Annual Report and summary consolidated Annual Financial Statements
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 our shareholders.
This Massmart Integrated Annual Report for December 2015 contains audited summary consolidated Annual Financial Statements which comprise a summary of the audited consolidated Group Annual Financial Statements prepared for the year ended December 2015.
The preparation of the audited consolidated Group and separate Annual Financial Statements, from which these audited summary consolidated Annual Financial Statements were derived, was supervised by the Chief Financial Officer, Johannes van Lierop.
The accounting policies and methods of computation used in the preparation of these audited summary consolidated Annual Financial Statements are consistent in all material respects with those applied in the prior year, as none of the amendments coming into effect in the current financial year have had a material impact on the financial reporting of the Group.
A full set of the audited consolidated Group Annual Financial Statements for the year ended December 2015 can be found here.
The audited summary consolidated Annual Financial Statements for the year ended December 2015, as described above, were approved by the Board of Directors on 1 April 2016 and signed on its behalf by:
Chief Executive Officer
|Johannes van Lierop
Chief Financial Officer
Forward Looking Statements
The Massmart Integrated Annual Report includes forward looking statements which relate to the possible future financial position and results of the Group’s operations. These statements by their nature involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Group to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements, as they relate to events and depend on circumstances that may or may not occur in the future.
Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, global and national economic and market conditions, competitive conditions, the cyclical nature of the retail sector, consumer and trade credit and the associated costs and risks of lending, inventory levels and regulatory factors.
The Group is not under any obligation to update or alter any forward looking statements publicly, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward looking statements contained herein, as they have not been reviewed or reported on by the Group’s external auditors.