Annual Report 2015 | Page 43

Corporate Governance A report on corporate governance is set out on pages 42 to 50. Payment of Suppliers and Commercial Arrangements The Group’s policy is to pay suppliers in line with the terms of payment agreed with each of them when contracting for their products or services. Group trade creditors at 31 March 2015 represent 59 days of purchases during the year (2014: 50 days). The increase over the previous year is as a result of the high level of capital expenditure in March 2015 compared to March 2014. The Group is not reliant on any single commercial arrangement. Going Concern The Directors consider each year the appropriateness of the assumption of preparing the financial statements on a going concern basis. This is based upon a review of the Company’s and the Group’s business plan, budget, financial forecasts, investment programme, and the forecast compliance with borrowing covenants, availability of undrawn borrowing facilities and surplus cash to provide liquidity and also based on the Group’s strong track record of renewing or replacing the Group’s borrowing facilities when they mature to provide liquidity. adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accounts. The Group’s business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report from pages 4 to 31. The financial performance and position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Financial Review on pages 26 to 31. After making enquiries, the Directors have a reasonable expectation that the Company and the Group have A resolution proposing the reappointment of Deloitte LLP as auditor will be put to the Annual General Meeting. Independent Auditor In accordance with the Companies Act 2006, the Directors confirm that as far as they are aware, there is no relevant audit information of which the Company’s auditor is unaware and that the Board has taken all reasonable steps to make itself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information. By Order of the Board J Goodwin Company Secretary 30 July 2015 41 Annual Report 2015 Corporate Social Responsibility South Staffordshire Plc regards compliance with relevant environmental laws, the adoption of responsible social and ethical standards and the health, safety, wellbeing and development of its employees, including disabled persons, as integral to its businesses. A summary of the Group’s practices and activities in this regard is provided on pages 32 to 37.