RedHarvest Tomato Farms (Pty) Ltd Business Plan › Corporate Governance & Investor Reporting

RedHarvest is committed to the highest standards of corporate governance, recognising that strong governance is essential for investor confidence, operational integrity, and sustainable growth. The governance framework is designed to be proportionate to the company’s size while adhering to the principles of King IV.

25.1 Board of Directors

The Board of Directors comprises the four founding shareholders plus one independent non-executive director to be appointed following the completion of funding. The independent director will serve as chair of the audit and risk committee and provide oversight on matters of financial reporting, internal controls, and risk management. Board meetings will be held quarterly, with additional ad hoc meetings as required. The Board’s key responsibilities include approval of annual budgets and capital expenditure above R500,000; review and approval of quarterly financial statements; oversight of risk management and compliance; approval of major contracts and supply agreements; monitoring management performance against agreed key performance indicators (KPIs); and approval of dividend distributions.

25.2 Investor Reporting

RedHarvest will provide comprehensive reporting to investors and debt funders on the following schedule: monthly management accounts including income statement, balance sheet, and cash flow statement, distributed within 15 business days of month-end; quarterly investor reports including financial performance, production metrics, market commentary, and progress against milestones, accompanied by a management discussion and analysis; annual audited financial statements prepared in accordance with International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs), audited by a registered auditor; and ad hoc reporting on material events, including significant contract awards, insurance claims, regulatory changes, or operational disruptions.

25.3 Internal Controls

The Finance Director will implement a system of internal financial controls appropriate for the scale of the operation, including segregation of duties in procurement, payment, and cash handling; dual authorisation for payments above R50,000; monthly bank reconciliations and cash counts; quarterly physical inventory counts of agricultural inputs and packaging materials; fixed asset register maintenance and annual verification; and regular review of debtor ageing and credit exposure. An external audit firm will perform the annual statutory audit and provide a management letter identifying any control weaknesses and recommendations for improvement.

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