(formely M-Cell Limited) - Business Report 2003 - MTN Group

STATEMENT OF DIRECTORS’ RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2003
The Directors are required by the South African Companies Act, 1973 as amended (the Companies Act) to maintain
adequate accounting records and to prepare annual financial statements which fairly present the state of affairs of the
Company and the Group as at the end of the financial year and of the profit or loss for that year, in conformity with
South African Statements of Generally Accepted Accounting Practice. The annual financial statements are the responsibility
of the Directors and it is the responsibility of the external auditors to report thereon. Their report to the members of the
Company is set out on pages 59 to 69 of this annual report.
To enable the Directors to meet these responsibilities, the Board sets standards and implements systems of internal control
aimed at reducing the risk of error or loss in a cost-effective manner. The controls include the proper delegation of
responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties
to ensure an acceptable level of risk. These controls are monitored throughout the Group, and all employees are required
to maintain the highest ethical standards in ensuring that the Group’s business practices are conducted in a manner
which, in all reasonable circumstances, is beyond reproach. The Directors are of the opinion, based on the information and
explanations given by management and the internal auditors, and on comment by the independent external auditors
on the results of their audits, that the internal accounting controls are adequate to ensure that the financial records may
be relied upon for preparing the annual financial statements and maintaining accountability for assets and liabilities.
Nothing has come to the attention of the Directors to indicate that any material breakdown in the functioning of these
controls, procedures and systems has occurred during the year under review.
The annual financial statements of the Group comply with South African Statements of Generally Accepted Accounting
Practice and the financial statements are based on appropriate accounting policies, that have been consistently applied,
except for the change in accounting policy in respect of connection incentives, which is disclosed in paragraph 2.9 under
the principal accounting policies, and have been supported by reasonable and prudent judgements and estimates. The
Directors are of the opinion that the annual financial statements fairly present the financial position of the Company and of
the Group as at 31 March 2003 and the results of the operations and cash flow information for the year then ended.
The annual financial statements have been prepared on a going concern basis and the Directors have every reason to
believe that the Group’s businesses will be going concerns in the year ahead.
PAGE 56
MTN BUSINESS REPORT 2003