Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 11
• Together with the going concern assessment, the Committee
reviewed the Group’s policies on risk assessment and risk
appetite as they pertain to financial reporting and found them to
be sound.
• The Committee considered the solvency and liquidity tests
undertaken for specific transactions and distributions and
considered and made recommendations to the Board in this
regard.
• The Committee considered whether any reportable irregularities
were identified and reported by the external auditors in terms
of the Auditing Profession Act, 2005, and determined that there
were none.
The Committee oversees the process relating to the
quality and integrity of Sasol’s integrated reporting
• The Committee guides the integrated reporting process, which
includes reporting on all material matters including sustainability
matters, having regard to all factors and risks, including any
significant legal and tax matters and any concerns identified that
may impact on the integrity of the integrated report or could
have a material impact on the financial statements.
• The Committee relies on management, the external auditor,
internal audit as well as the Group’s independent ethics
reporting telephone line and email to highlight any concerns,
complaints or allegations relating to internal financial controls,
the content of the financial statements and potential violations
of the law or questionable accounting or auditing practices.
Separate meetings are also held with management, the external
auditor and internal audit every quarter.
The Committee is satisfied with the reporting process
and confirms that where matters were raised by
stakeholders, management has responded promptly
• With regards to the LCCP, the Committee is of the opinion that
the remediation efforts have been successful in addressing
the weaknesses identified within the project’s capital cost
estimation controls and procedures, and related oversight, and
the proposed control improvements. The material weakness is
considered closed at 30 June 2021.
• With regards to a material weakness that was identified
in FY20 in respect of the controls over the impairment
assessment process of the Southern Africa Energy value chain,
the Committee has reviewed the remediation plan. While
significant progress has been made to remediate the material
weakness, as of 30 June 2021, the Company is still in the
process of implementing some of the longer-term remediation
controls. The Committee noted that during the execution of the
remediation plan further errors were identified by management,
resulting in a revision of the financial results of the prior periods,
refer to note 1 of the annual financial statements. The FY20
material weakness has as a result been expanded to include the
additional errors identified by management. The Committee
will continue to monitor the additional remediation actions
to be implemented closely and believes that management’s
actions will be effective in remediating the material weakness,
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• The Committee considered the views of internal and/or external
counsel and management in considering legal and ethics matters
that could have a material impact on the Group.
• The Committee reviewed reports on the Group’s tax position,
status of tax litigation claims and the status of the Group’s tax
compliance globally and relevant fiscal developments impacting
the Group.
• Together with the Nomination and Governance Committee, the
Committee reviewed the adequacy and effectiveness of the
Group’s procedures to ensure compliance with financial, legal
and regulatory responsibilities.
The Committee is satisfied that our external auditor,
PwC, is qualified and independent of the Group
• The Committee has nominated the external auditor for
re-appointment by the shareholders for the following financial
year. Their appointment complies with the Companies Act,
JSE listings requirements and all other applicable legal and
regulatory requirements. PwC has been the auditor since 2014
and is in compliance with the relevant external audit partner
JSE qualification and the rotation rules, whereby the lead
engagement partner is required to rotate every five years. The
current lead partner, Johan Potgieter, was appointed since 2019.
• Independence by the Independent Regulatory Board for Auditors
and international regulatory bodies, PwC confirmed in an
annual written statement that their independence has not been
impaired.
• The Committee was assured that no member of the external
audit team was hired by the Company or any other company
within the Group in a financial reporting oversight role during
the year under review.
• The auditor’s independence was not impaired by any
consultancy, advisory or other work undertaken by them for
the Company or any previous appointment as auditor of the
company or any other company within the Group.
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
The Committee reviewed compliance with legal
and regulatory requirements to the extent that it
might have an impact on financial statements and is
satisfied that all matters with a material impact have
been disclosed appropriately
NOTES TO THE FINANCIAL STATEMENTS
• The Committee reviewed the interim financial results and annual
financial statements and is satisfied that they fairly present the
consolidated and separate results of operations, cash flows, the
financial position of Sasol Limited and the Group and comply,
in all material respects, with the relevant provisions of the
Companies Act, International Financial Reporting Standards
(IFRS) and Interpretations of IFRS as issued by the International
Accounting Standards Board.
• The material weakness will not be considered remediated until
the design and implementation of the longer-term remediation
controls are embedded and operate for a sufficient period
and management has concluded, through testing, that these
controls are operating effectively.
SASOL LIMITED COMPANY
The Committee confirmed the going concern
assumption as the basis of preparation of the interim
and annual financial statements
as they continue to devote significant time and attention to
these efforts.
• The auditor does not, except as external auditor, or in rendering
of permitted non-audit services, receive any direct or indirect
remuneration or other benefit from the Company or any other
company within the Group. Permitted non-audit services are
approved in line with and to the extent permitted by the policy
on permitted non-audit services.
• The Committee satisfied itself that PwC, as well as the individual
auditor determined by PwC to be responsible for performing the
functions of auditor, were duly accredited as such on the JSE’s
list of auditors.
• PwC submitted reports relating to quality assessment reviews
undertaken internally and by the Independent Regulatory Board
for Auditors and the Public Company Accounting Oversight
Board, together with progress on any remedial actions
necessary. There are no significant matters to report to the
shareholders.
• The quality of the external audit process was reviewed, and the
Committee concluded it to be satisfactory. It was confirmed that
no unresolved issues of concern exist between the Group and
the external auditors.
Sasol Annual Financial Statements 2021
OTHER
Executing on our statutory duties
and other areas of responsibilities