2012 Annual Report (2 April 2013) - Grange Resources

2012 ANNUAL REPORT
41
PAGE
Directors’ Report (cont.)
Indemnity of Auditors
The Company has entered into an agreement to indemnify their
auditor, PricewaterhouseCoopers, against any claims or liabilities
(including legal costs) asserted by third parties arising out of their
services as auditor of the Company, where the liabilities arise as
a direct result of the Company’s breach of its obligations to the
Auditors, unless prohibited by the Corporations Act 2001.
Audit and Non-audit Services
Details of the amounts paid or payable to the auditor for audit and
non-audit services provided during the period are set out below.
The Board of Directors has considered the position and, in
accordance with advice received from the Company’s Audit
Committee, is satisfied that the provision of non-audit services
is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. The Directors
are satisfied that the provision of non-audit services by the
auditor, as set out below, did not compromise the auditor
independence requirements of the Corporations Act 2001 for the
following reasons:
◆ ◆ all non-audit services have been reviewed by the audit
committee to ensure they do not impact the impartiality and
objectivity of the auditor; and
◆ ◆ none of the services undermine the general principles relating
to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants.
During the period the following fees were paid or payable for
services provided by the auditor of the parent entity, its related
practices and non-related audit firms:
It is the Group’s policy to employ PricewaterhouseCoopers on
assignments additional to their statutory audit duties where
PricewaterhouseCoopers expertise and experience with the
Group are important. These assignments are principally tax
consulting and advice or where PricewaterhouseCoopers is
awarded assignments on a competitive basis. It is the Group’s
policy to seek competitive tenders on all major consulting
assignments. Group policy also requires the Chairman of the
Audit Committee to approve all individual assignments performed
by PricewaterhouseCoopers with total fees greater than $10,000.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required
under section 307C of the Corporations Act 2001 is set out on
page 42.
Rounding of amounts
The Company is of a kind referred to in Class Order 98/100,
issued by the Australian Securities and Investments Commission,
relating to the “rounding off” of amounts in the Directors’ report.
Amounts in the Directors’ report have been rounded off in
accordance with that Class Order to the nearest thousand dollars,
or in certain cases, to the nearest dollar.
Auditor
PwC continues in office in accordance with section 327 of the
Corporations Act 2001.
The report is made in accordance with a resolution of Directors.
2012 2011
$’000 $’000
(a) PwC - Australia
Audit and review of financial reports 292 230
Other assurance services 58 65
Taxation services
Taxation compliance 248 212
Taxation consulting and advice 425 1,648
Other services - 220
Total remuneration of PwC - Australia 1,023 2,375
Zhiqiang Xi
Chairman
(b) Related practices of PwC - Australia
Audit and review of financial reports 8 62
Taxation compliance 2 15
Total remuneration of related
practices of PwC - Australia 10 77
Richard Mehan
Managing Director
Perth, Western Australia
27 February 2013