Thirty-Second Report of the Standing Committee on Public Accounts, dated 4 August 2003:

1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report, including the Report of the external auditors (Pricewaterhouse Coopers Inc) on the Financial Statements of Denel (Pty) for the year ended 31 March 2002,reports as follows:

2. AUDIT OPINION
The Committee commends the management of Denel (Pty) for the unqualified audit opinion expressed by the external auditors, and trusts that future audit opinions will be equally unqualified.

3. CONCLUSION
Having noted the unqualified audit opinion expressed by the external auditors, it is the view of the Committee that no further action with the entity would be necessary for the financial year under review.

Report to be considered.