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The RCS audit committee is an independent statutory committee

appointed by the board of directors in terms of the Companies

Act (Act 71 of 2008) (“the Act”). The committee comprises of

one independent non-executive director, which is also the

chairman of the audit committee, and two non-executive

directors. The audit committee met twice during the period

ended 31 December 2015. In addition, the chairman of the audit

committee held various meetings with representatives of the

internal and external auditors during the period under review.

The committee’s responsibilities include statutory duties in terms

of the Act. The committee’s terms of reference are determined by

a board-approved charter. The committee conducted its affairs in

compliance with, and discharged its responsibilities in terms of,

its charter for the period ended 31 December 2015.

The committee performed the following, inter alia, duties during

the period under review:

• Satisfied itself that the external auditor is independent of the

group, as set out in section 94(9) of the Act;

• In consultation with executive management, agreed

to the terms, audit plan and budgeted fees for the

31 December 2015 financial period;

• Approved the nature and extent of non-audit services

that the external auditor may provide;

• Satisfied itself, based on the information and explanations

supplied by management and obtained through discussions

with the independent external auditor and internal auditors,

that the system of internal financials controls is effective and

forms a basis for the preparation of reliable financial statements;

• Reviewed the accounting policies and the group financial

statements for the period ended 31 December 2015

and, based on the information provided to the committee,

considers that the group complies, in all material

respects, with the requirements of the Act and IFRS;

• Ensured that the group’s internal audit function is

independent and had the necessary resources and

authority to enable it to discharge its duties;

• Approved the internal audit plan;

• Met with the external and internal auditors without management

being present;

• Satisfied itself that the group financial director and finance function

has appropriate expertise and experience;

• Considered as part of the approval of the financial statements

any accounting treatments, significant unusual transactions,

or accounting judgements that could be contentious; and

• Reviewed management’s assessment of going concern

and sustainability and made a recommendation to the

board that the going concern concept be adopted by the group.

E Oblowitz

Audit Committee Chairman