CONSOLIDATED ANNUAL FINANCIAL - Airports …

1 Airports COMPANY SOUTH AFRICA CONSOLIDATED ANNUAL FINANCIAL STATEMENTS 2017 RUN AIRPORTSDEVELOP AIRPORTSGROW OUR FOOTPRINTCONSOLIDATED ANNUAL FINANCIAL STATEMENTS 2017 Country of incorporation and domicileSouth AfricaCompany registration number1993/004149/30 Directors Independent Non executive DirectorsS Macozoma1B Luthuli2C Mabude2K Moroka2K Matlou2J LamolaM MabelaS Simelane Executive DirectorsB MasekoM Manyama3 Non executive DirectorsR Morar D BothaRegistered officeThe MaplesRiverwoods Office Park24 Johnson RoadBedfordview2008 Postal addressPO Box 75480 Gardenview2047 BankersStandard BankNedbankAuditorsAuditor-General South AfricaSecretaryN Kekana1 Resigned as at 30 November 20162 Resigned on 16 February 2017.

2 Reinstated on 31 May 20173 Resigned as at 4 January 2017 These CONSOLIDATED ANNUAL FINANCIAL statements were prepared under the supervision of: Dirk Kunz CA(SA).These CONSOLIDATED ANNUAL FINANCIAL statements have been audited in compliance with the applicable requirements of the Companies Act No. 71 of INFORMATIONAIRPORTS COMPANY SOUTH AFRICA2 REPORT OF THE board AUDIT AND RISK COMMITTEE3 DIRECTORS RESPONSIBILITIES AND APPROVAL4 GROUP SECRETARY S CERTIFICATION5 REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON Airports COMPANY SOUTH AFRICA12 DIRECTORS REPORT14 DETAILED INDEX TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS16 STATEMENT OF FINANCIAL POSITION17 STATEMENT OF COMPREHENSIVE INCOME18 STATEMENT OF CHANGES IN EQUITY20 STATEMENT OF CASH FLOWS21 NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL

3 STATEMENTSCONTENTS11 Airports COMPANY SOUTH AFRICAThe board Audit and Risk Committee (Committee) of the Airports Company South Africa consists of five non-executive directors. The skills and competencies of the members are outlined in the board and executive curricula vitae supplementary report, which can be found at The Committee operated under terms of reference which are approved by the board . The Committee has carried out its duties as per the Companies Act and the Public Finance Management Act, including the special mandates that are assigned by the board from time to Committee reports that it has discharged its responsibilities as it relates to the following, namely review of: The Group s policies and procedures for detecting and preventing fraud.

4 The effectiveness of the Group s policies, systems and procedures. The controls over significant FINANCIAL and operational risks. Any other matters referred to it by the board of Directors. The Group s compliance with significant legal and regulatory provisions. The significant reported cases of employee conflicts of interest, misconduct or fraud, or any other unethical activity by employees and/or Group. The internal audit charter to ensure internal audit function discharges its responsibilities with independence and objectivity in accordance with the International Standards for The Professional Practice of Internal Auditing (Standards).

5 The effectiveness and adequacy of the Internal Audit department and adequacy of its ANNUAL work plan. Considered whether the independence, objectives, organisation, resourcing plans, FINANCIAL budgets, audit plans and standing of internal audit function provide adequate support to enable the Committee to meet its objectives. The results of the work performed by the internal audit function in relation to FINANCIAL reporting, corporate governance, risk areas, internal control, significant investigation and management response.

6 The independence and objectivity of external auditors. The external auditor s findings and reports submitted to management. The accounting and auditing concerns identified by internal and external auditors. The adequacy, reliability and accuracy of FINANCIAL information provided by management. The integrated report, ANNUAL CONSOLIDATED FINANCIAL statements, performance and prospects of the Group and recommendations for approval to the board of Committee acknowledges an increase in irregular expenditure reported.

7 The primary cause for the largest component of this transgression is non-compliance to internal supply chain procedures. Management is in the process of improving the compliance to supply chain management procedures through the implementation of the new supply chain management operating model. The Committee is continuously monitoring the status of irregular expenditure and all corrective measures Committee is of the opinion that there are areas of internal FINANCIAL controls that need improvement to ensure that the FINANCIAL records may be relied upon in the preparation of the CONSOLIDATED ANNUAL FINANCIAL statements, and accountability for assets and liabilities is maintained.

8 The conclusion has been reached based on the discussions and explanations obtained from management, external and internal auditors based on the results of their Committee obtained assurance from the external auditors that their independence was not impaired and confirmed that no reportable irregularities were identified and reported by the external auditors in terms of the Auditing Profession Act No. 26 of Committee is satisfied that the accounting policies adopted in the preparation of the CONSOLIDATED ANNUAL FINANCIAL statements are appropriate.

9 The Committee is of the view that the process followed on accounting judgement and estimates used in the preparation of the FINANCIAL statements needs to be Committee reviewed the going concern of the Company and is satisfied that the adoption of the going concern premise in the preparation of the CONSOLIDATED ANNUAL FINANCIAL statements is therefore recommend that the CONSOLIDATED ANNUAL FINANCIAL statements, as submitted, be behalf of the board Audit and Risk Committee,S SimelaneChairman31 August 2017 REPORT OF THE board AUDIT AND RISK COMMITTEE2 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS 20173 The Directors are required in terms of the Companies Act No.

10 71 of 2008, Treasury Regulations and the Public Finance Management Act No. 1 of 1999 as amended, to maintain adequate accounting records and are responsible for the content and integrity of the CONSOLIDATED ANNUAL FINANCIAL statements and related FINANCIAL information included in this report. It is their responsibility to ensure that the CONSOLIDATED ANNUAL FINANCIAL statements fairly present the state of affairs of the Group as at the end of the FINANCIAL period and the results of its operations and cash flows for the period then ended, in conformity with International FINANCIAL Reporting Standards (IFRS).