Annual Report 2003 - Antofagasta plc

c) Relations with ShareholdersThe Executive Directors and senior management regularly meet with institutional shareholders and analystsin the United Kingdom, Chile and the United States. The Company carries out a formal programme ofpresentations to update institutional shareholders and analysts on developments in the Group after theannouncement of the interim and full year results. In addition, production and transport volumes for themining and railway operations are published on a quarterly basis. Copies of these results and productionannouncements, presentations and other press releases issued by the Company are available on itswebsite. The Company’s Annual General Meeting is also used as an opportunity to communicate withboth institutional and private shareholders and the Board of Directors encourages their attendance.d) Accountability and AuditStatement of Directors’ ResponsibilitiesUnited Kingdom company law requires the Directors to prepare financial statements for each financial yearwhich give a true and fair view of the state of affairs of the Group and the Company and of the profit orloss of the Group for that period. In preparing those financial statements, the Directors are required to:■select suitable accounting policies and then apply them consistently;■make judgements and estimates that are prudent and reasonable;■state whether applicable accounting policies have been followed; and■prepare financial statements on the going concern basis unless it isinappropriate to presume that the Company will remain in business.The Directors are also responsible for keeping proper accounting records which disclose with reasonableaccuracy at any time the financial position of the Group and the Company and to enable them to ensurethat the financial statements comply with the Companies Act 1985. They are also responsible for thesystem of internal control, safeguarding the assets of the Group and the Company and hence for takingany reasonable steps for the prevention and detection of fraud and other irregularities.Audit CommitteeMr. C H Bailey (Chairman) and Mr. G S Menendez, both of whom, as explained above, are independentNon-Executive Directors, were members of the Audit Committee throughout 2003. Mr. R F Jara was alsoappointed to this Committee following his appointment to the Board as a Non-Executive Director on11 March 2003 and from this date the Audit Committee had three members. The Audit Committee meets atleast twice a year with the external auditors in attendance. The Audit Committee’s purpose is to assist theBoard in meeting its responsibilities relating to financial reporting and control matters. In particular, itreviews the scope and nature of the audit and issues arising from it, as well as the reappointment of theexternal auditors. It reviews the internal control and risk assessment procedures adopted by the Groupdescribed in the section on internal controls below. It also reviews the financial statements and Directors’statements on internal controls and the going concern basis prior to endorsement by the Board. The AuditCommittee’s Terms of Reference were reviewed at the end of 2003 to take into account the changesintroduced to the Combined Code which will apply in 2004, and are available on the Company’s website.ANTOFAGASTA PLC Annual Report and Financial Statements 200339