CORPORATE GOVERNANCE

THE BOARD REQUESTED THAT AECI'S MANAGEMENT "CONTROL WORKING CAPITAL AGGRESSIVELY". IN THE 2009 FINANCIAL YEAR, THE GROUP'S NET WORKING CAPITAL AS A RATIO OF REVENUE IMPROVED TO 15,9% FROM 19,2% AT THE END OF 2008. CASH MANAGEMENT WAS EXCELLENT AND THE REDUCTION IN WORKING CAPITAL DELIVERED MORE THAN R1 BILLION IN CASH. THE EFFORTS OF CHEMSERVE IN THIS REGARD WERE PARTICULARLY COMMENDABLE.

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	Introduction
	Information Technology (IT)
	The year ahead
	The Board
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	Key risk profile
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INFORMATION TECHNOLOGY (IT)

The forthcoming introduction of King III has a number of implications for the management of IT in companies. AECI has conducted an analysis of the implications of this section of King III on its IT management philosophy, and has prepared an action plan to address certain identified shortcomings.

IT governance will become a Board agenda item, although the Board may decide to assign the responsibility of monitoring IT governance to the Risk Committee. The role of chief information officer has been assigned to a senior Group manager.

The functions of the existing IT Forum are being extended, to enable it to play a more active role in enabling IT governance. New IT policies have been drafted, which were approved by the Executive Committee at its meeting in February 2010 and will be implemented during the year.