Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 6
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SASOL LIMITED GROUP
Report of the Audit Committee continued
• Effectiveness of the Group’s internal audit function, the Group’s
finance function, Sasol’s internal financial controls and systems
of internal control and risk management;
• Compliance with legal and regulatory requirements to the extent
that it might have an impact on the financial statements; and
• Systems in place to enable concerns to be raised by Sasol
employees about possible improprieties in financial reporting or
other issues and for those matters to be investigated.
The Committee considered scenarios that might impact the
Company’s viability, stress testing the Sasol business against
pertinent factors including global oil prices and chemical prices’
volatility, the impacts of the COVID-19 pandemic and rand/US$
exchange rates, and identifying contingency actions for these
scenarios.
The Committee continued to monitor key risks identified and
mitigated, and how business segments and functions are
performing to achieve the Company’s strategy.
Composition and meeting
Members of the Committee are independent non-executive
directors, all of whom are financially skilled and have extensive
audit committee experience. The members are Messrs C Beggs,
S Westwell, S Subramoney and Mss GMB Kennealy, NNA Matyumza
and KC Harper. Mr S Subramoney was appointed as a member
of the Committee effective 1 March 2021. We believe that the
experience of the Committee members gives perspective and
insight to the Committee’s considerations and decisions.
The members gained further knowledge and experience of the
business through management presentations and various site
visits since their respective appointments. Mr C Beggs was
designated as the Audit Committee financial expert in accordance
with the US Securities and Exchange Commission (SEC) rules. None
of the members serve on audit committees of more than three
listed companies.
Statutory duties
The Committee is constituted as a statutory committee of
Sasol Limited in line with the Companies Act and accountable
in this regard to both the Board and Sasol’s shareholders. It is a
committee of the Board in respect of all other duties the Board
and US legislation assigns to it, and has been delegated extensive
powers to perform its functions in accordance with the Companies
Act and US corporate governance requirements. The Committee
fulfilled all its statutory duties as required by section 94(7) of the
Companies Act. The Committee also acts as the audit committee
for all South African companies within the Sasol Group.
The Committee confirms that it has executed the responsibilities
set out in section 3.84(g) of the JSE Listing Requirements.
A copy of the Committee’s terms of reference is available on the
Sasol website (www.sasol.com).
Significant financial statement
reporting issues
Assumptions and estimates or judgements are a significant part
of the financial reporting process and are evaluated carefully
by the Committee ahead of the finalisation of Sasol’s results
announcements. The Committee reviewed in detail the main
judgements and assumptions made by management, relevant
sensitivity analyses performed, and the conclusions drawn from
the available information and evidence, with the main areas of
focus during the year set out below. Where appropriate, the
Committee seeks input and views from the external auditor
and encourages rigorous challenge on control, accounting and
disclosure matters.
In addition to these main areas of focus, the Committee also
covered matters relating to cost savings programmes, budgeting
and forecasting, taxation and accounting policy choices.
Ms GMB Kennealy has been appointed as chairman of the audit
committee with effect from 1 September 2021 upon the retirement
of Mr C Beggs on 31 August 2021. With the appointment of
Ms Kennealy as chairman, the Board has designated her as the
Audit Committee financial expert in accordance with the SEC rules.
The Committee met eight times during the financial year. All
Committee members attended all meetings and were joined at
these meetings by the Chairman of the Board, the President and
Chief Executive Officer and the Chief Financial Officer. The Chairman
reports to the Board on key matters arising after each of these
meetings. At each meeting, the Committee meets separately
during closed sessions with the President and Chief Executive
Officer, management, internal audit and external audit.
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Sasol Annual Financial Statements 2021