SBN HOLDINGS LIMITED Annual Report 2022
48
DIRECTORS' RESPONSIBILITY AND APPROVAL
SBN HOLDINGS LIMITED
Annual report 2022
49
REPORT OF THE INDEPENDENT AUDITOR
In accordance with the Companies Act of Namibia (Companies
Act), the directors are responsible for the preparation of the
annual financial statements.
These annual financial statements conform to International
Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), the Institute
of Chartered Accountants' of Namibia (ICAN) Financial Reporting
Guides as issued by the Accounting Practices Committee,
the Namibian Stock Exchange (NSX) and Johannesburg
Stock Exchange (JSE) Listings Requirements, Financial
Pronouncements as issued by the Financial Reporting Standards
Council, as well as the requirements of the Namibian Companies
Act and fairly present the affairs of the group and company as
at 31 December 2022, and the net income and cash flows for
the year then ended. The company is also in conformity with its
memorandum of incorporation.
The directors are ultimately responsible for the internal controls
of the group and company. Management enables the directors
to meet these responsibilities. Standards and systems of
internal controls are designed, implemented and monitored by
management to provide reasonable assurance of the integrity
and reliability of the financial statements and to adequately
safeguard, verify and maintain accountability for shareholder
investments and company and group assets. Systems and
controls include the proper delegation of responsibilities within
a clearly defined framework, effective accounting procedures
and adequate segregation of duties. It is the responsibility of the
independent auditors to report on the fair presentation of the
financial statements.
Based on the information and explanations provided by
management and the group and company's internal auditors, the
directors are of the opinion that the internal financial controls are
adequate and that the financial records may be relied upon for
preparing the financial statements in accordance with IFRS and
to maintain accountability for the group and company's assets
and liabilities. Nothing has come to the attention of the directors
to indicate that a breakdown in the functioning of these controls,
resulting in material loss to the group and the company, has
occurred during the year and up to the date of this report.
The directors have a reasonable expectation that the group and
company will have adequate resources to continue in operational
existence and as a going concern in the financial year ahead. The
2022 annual financial statements, which appear on pages 55 to 175,
were approved by the board on 22 March 2023 and signed on its
behalf by:
La
Mr H Maier
Chairman
Meises.
Mrs M Geises
Chief executive
To the Members of SBN Holdings Limited
Our opinion
In our opinion, the consolidated and separate financial
statements present fairly, in all material respects, the
consolidated and separate financial position of SBN Holdings
Limited (the Company) and its subsidiaries (together the Group)
as at 31 December 2022 and its consolidated and separate
financial performance and its consolidated and separate cash
flows for the year then ended in accordance with International
Financial Reporting Standards and the requirements of the
Companies Act of Namibia.
What we have audited
SBN Holdings Limited's consolidated and separate financial
statements set out on pages 55 to 175 comprise:
■the directors' report for the year ended 31 December 2022
■the consolidated and separate statements of financial position
as at 31 December 2022;
■the consolidated and separate income statements for the year
then ended
■the consolidated and separate statements of other
comprehensive income for the year then ended;
the consolidated and separate statements of changes in equity
for the year then ended;
■the consolidated and separate statements of cash flows for the
year then ended; and
the notes to the financial statements, which include a
summary of significant accounting policies, excluding the
sections marked as unaudited in Annexure B pages 126 to 127
and 142 to 145.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditor's responsibilities
for the audit of the consolidated and separate financial
statements section of our report.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants
International Code of Ethics for Professional Accountants
(including International Independence Standard) (Code of
Conduct) and other independence requirements applicable to
performing audits of financial statements in Namibia. We have
fulfilled our other ethical responsibilities in accordance with the
Code of Conduct and in accordance with other ethical
requirements applicable to performing audits in Namibia.
Our audit approach
Overview
Materiality
Group
Scoping
Key audit
matters
Overall group materiality
Overall group materiality:
N$42 943 150 which represents 5% of
consolidated profit before direct
taxation.
Group audit scope
A full scope audit was performed on
the Company and Standard Bank
Namibia Limited based on its
financial significance to the Group.
■Specified procedures were
performed on the Properties in
possession which arose from
the acquisition of Spearmint
Investments (Pty) Ltd, due to their
associated risk to the Group.
Analytical review procedures were
performed on the remaining
subsidiaries being financially
inconsequential components.
Key audit matters
Expected credit losses on Corporate
and Investment Banking (CIB) loans
and advances; and
■Expected credit losses on Business
and Commercial Banking (BCB)
and Consumer and High Net Worth
(CHNW) clients loans and advances.
Acquisition of a subsidiary,
Spearmint Investments (Pty) Ltd.
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the consolidated
and separate financial statements. In particular, we considered
where the directors made subjective judgements; for example, in
respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently
uncertain. As in all of our audits, we also addressed the risk of
management override of internal controls, including among other
matters, consideration of whether there was evidence of bias
that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of
materiality. An audit is designed to obtain reasonable assurance
whether the financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They
are considered material if individually or in aggregate, they could
reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall group
materiality for the consolidated financial statements as a whole
as set out in the table below. These, together with qualitative
considerations, helped us to determine the scope of our audit
and the nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements, both individually and in
aggregate on the financial statements as a whole.
PricewaterhouseCoopers, Registered Auditors
344 Independence Avenue, Windhoek, Khomas Region, Republic of Namibia
PO Box 1571, Windhoek, Khomas Region, Republic of Namibia
T: +264 (61) 284 1000, F: +264 (61) 284 1001, www.pwc.com/na
Country Senior Partner: Chantell N Husselmann
The Firm's principal place of business is at 344 Independence Avenue, Windhoek, Republic of Namibia, Khomas Region, Republic of Namibia
Partners: Louis van der Riet, Anna EJ Rossouw (Partner in charge: Coast), Gerrit Esterhuyse, Samuel N Ndahangwapo, Hans F Hashagen, Johannes P Nel,
Hannes van den Berg, Willem A Burger
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