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Scope and boundary

This report covers the activities of the Imperial group for the 12 months to 30 June 2012. The abridged financial statements on pages 88 to 121 are an extract of the audited annual financial statements.

The complete audited annual financial statements, which comply with International Financial Reporting Standards (IFRS) and the Companies Act, No 88 of 2008, are available on www.imperial.co.za and the compact disc in this report.

A separate sustainability report has been prepared using the guidelines of the Global Reporting Initiative (GRI G3) and is available online at www.imperial.co.za and on the compact disc in this report. Certain key aspects of the sustainability report have been integrated into this report.

This year Imperial has produced its second integrated report in its endeavour to integrate the financial and non-financial aspects of its reporting for a more comprehensive understanding by all stakeholders, in line with the recommendations of King III. In response to stakeholder feedback, divisional disclosures are intended to give readers a better understanding of each of these businesses in their respective markets and a basis to measure progress against stated objectives.

This integrated annual report gives stakeholders details of:

  • highlights and key data;
  • an overview of the Imperial group;
  • the chairman’s and management’s review of governance and performance for the 2012 financial year;
  • risks and opportunities facing the Imperial group;
  • strategic objectives;
  • remuneration and employment equity aspects; and
  • abridged financial statements.

The directors are responsible for the content of this report and although all reasonable steps have been taken to ensure its accuracy, they can only provide reasonable assurance that reporting systems are accurate. During the year, the group further enhanced systems to monitor the accuracy, completeness and reliability of financial, operational, safety, health and environmental management information. We will continue to refine and improve these processes over time.

The abridged financial statements must be read in conjunction with the complete set of audited annual financial statements available on the website and on the compact disc supplied with this report. The separate sustainability report combines the various safety, health and environmental issues dealt with throughout the integrated annual report and expands on them to give stakeholders a complete picture. A copy of the sustainability report is available on the website and on the compact disc supplied with this report.

Imperial has five operating divisions which are independently managed and operate within authority limits set by the board, and governance guidelines laid down by the board and executive committee. These are designed to apply to governance standards appropriate to their industries.

Due to the decentralised management structure of the group and diverse nature of its operating businesses, information is recorded and reported in different formats. There is a standardised approach to consolidate the group’s financial reporting and the group has used its best endeavours to ensure the report meets the material reporting needs of stakeholders. Our intention is to give readers a clearer understanding of our operations, the factors that drive them and the impact they have on the economic, social and physical environments in which we conduct our business.

Imperial’s businesses in Africa, Europe, the United Kingdom, the USA and Australia are included in the report. Non-financial impacts related to entities not operationally controlled by the group have been excluded.


In choosing the topics included in the report, we considered the requirements and expectations of external and internal stakeholders and prioritised material topics and indicators, relevant to significant stakeholders.

Materiality was also determined on an operational basis to provide meaningful and transparent information to stakeholders, focusing on issues that are of concern to stakeholders and which are of significant strategic relevance to Imperial. Key business risks also informed the selection of topics to be reported upon.

A stepped approach was used to identify key stakeholders and the matters of relevance to them, issues reported in the media in relation to Imperial and the industries in which it operates, and key matters relating to Imperial’s financial and non-financial performance during the year.


In line with the Global Reporting Index (GRI) framework, we have elected to rate our sustainability report at level C.

During the financial year we implemented a new system to record non-financial data during the financial year to improve the accuracy of this data in management of the group’s non-financial impacts. The internal audit department is in the process of reviewing the control systems pertaining to this.

King III

The group has applied recommendations of King III and the board continually assesses the group’s practices against the recommendations in King III and will implement improvements on an ongoing basis. This includes:

  • enhanced reporting on stakeholder engagement; and
  • future third-party assurance of sustainability data.

Audit opinion

The auditors, Deloitte & Touche, have issued an unmodified audit opinion on the group’s annual financial statements for the year ended 30 June 2012. The audit was conducted in accordance with International Standards on Auditing. A copy of their audit report is available for inspection at the company’s registered office, and is incorporated in the complete annual financial statements.

Any reference to future financial performance included in this integrated annual report has not been reviewed or reported on by the company’s auditors.

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