About this report

Petmin Limited is pleased to present its first Integrated Annual Report to stakeholders, for the year ended 30 June 2011, in accordance with the principles contained in the King Code of Governance Principles for South Africa 2009 (King III).

The primary objective of integrated reporting is to clearly demonstrate the ability of an organisation to create and sustain value over the short, medium and long term. The integrated report should provide a greater understanding of the group’s strategy, its business model and its major impacts across economic, social and environmental areas as well as insight into how the group’s business is managed.

In compiling this report we were guided by the principles of integrated reporting which in turn addresses the needs of our various stakeholders. It is noted that the adoption of integrated reporting will be an evolutionary and developmental process for South African corporates and may take a number of years to fully implement and achieve the desired reporting process.

Scope and boundary

The scope of the report includes all our operating subsidiaries over which we have financial and management control and cover the financial reporting period 1 July 2010 to 30 June 2011.

This integrated report should be read together with the audited Annual Financial Statements available online at www.petmin.co.za.

The Annual Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS). Financial information contained in the integrated report has been extracted from the audited annual financial statements.

Management has considered and applied the principles of King III relating to integrated reporting as well as the discussion paper of the Integrated Reporting Committee of South Africa in the preparation of this report to the extent possible in the current year. As the concepts and practices of integrated reporting develop, management will aim to enhance disclosures and application as deemed appropriate.

The principle of materiality has been applied in determining the content and extent of disclosure in the integrated report.

External assurance

Assurance of the integrated report has been considered over the integrated reporting process as well as the contents of the integrated report itself. The Board assisted by the Audit and Risk Committee is ultimately responsible for overseeing the integrity of the integrated report. This has been achieved through setting up appropriate teams and structures to undertake the reporting process as well as review and approval of the integrated report by the Board.

A combined assurance approach will be developed in future years to ensure the appropriate application of integrated reporting principles and the integrity of data contained in the report. External assurance obtained in the current year was limited to the audit opinion expressed on the group annual financial statements.

Approval of the integrated report

The Board acknowledges its responsibility to ensure the integrity of the integrated report. The directors confirm they have collectively reviewed the content of the integrated report and believe it addresses the material issues and is a fair presentation of the integrated performance of the Group. The Board approved the release of the 2011 integrated report on 27 October 2011.