The following documents have been filed as part of this Annual Report on Form
40-F:
The Registrants Annual Information Form for the year ended January 31, 2019 is attached as Exhibit 99.1 to this Annual Report on
Form 40-F and is incorporated by reference herein.
The Registrants audited annual consolidated financial statements for the year ended January 31, 2019, including the report of the
independent registered public accounting firm with respect thereto, are attached as Exhibit 99.2 to this Annual Report on Form
40-F
and are incorporated by reference herein.
CONTROLS AND PROCEDURES
The Companys President and Chief Executive Officer and the Chief Financial Officer are responsible for establishing and
maintaining the Companys disclosure controls and procedures as well as its internal control over financial reporting, as those terms are defined in National Instrument 52-109
Certification of Disclosure in Issuers Annual and
Interim Filings
of the Canadian securities regulatory authorities.
There were no changes in the Companys internal controls over
financial reporting during the three- and twelve-month periods ended January 31, 2019, that have materially affected, or are reasonably likely to materially affect the Companys internal controls over financial reporting. As in previous years,
the Company has received an unqualified opinion from its external auditor in relation to its consolidated financial statements for the twelve-month period ended January 31, 2019.
In the context of the preparation of the companys first Sarbanes-Oxley (SOX) certification which will be required as at
January 31, 2020 (as defined in
Rules 13(a)-15(f)
under the U.S. Securities Exchange Act of 1934 (the Exchange Act)), the company established a two-year roadmap which has been reviewed
with its external auditor. As expected, given the US compliance requirements under SOX, control remediation requirements have been identified and have been incorporated into our SOX compliance roadmap. Management determined that the company did not
have all of the required effective controls over the accuracy and completeness of information used in the execution of internal controls over critical spreadsheets and reports created from data extracted from the Companys information systems,
which is further described below. However, Management has also concluded that the Companys audited consolidated financial statements as at and for the year ended January 31, 2019 present fairly, in all material respects, the Company
financial position, results of operations, changes in equity and cash flows in accordance with IFRS.
Disclosure controls and procedures
The President and Chief Executive Officer and the Chief Financial Officer have designed, or caused to be designed under their supervision,
disclosure controls and procedures in order to provide reasonable assurance that:
|
|
|
material information relating to the Company has been made known to them; and
|
|
|
|
information required to be disclosed in the Companys filings is recorded, processed, summarized and
reported within the time periods specified in securities legislation.
|
An evaluation was carried out under the
supervision of the President and Chief Executive Officer and the Chief Financial Officer of the design and effectiveness of the Companys disclosure controls and procedures. Based on this evaluation, the President and Chief Executive Officer
and the Chief Financial Officer concluded, as of January 31, 2019, that the Companys disclosure controls and procedures could be considered ineffective as a result of a material weakness identified in the Companys internal controls over
financial reporting, which is further described below.
Managements annual report on internal control over financial reporting
The President and Chief Executive Officer and the Chief Financial Officer have designed, or caused to be designed under their supervision, such
internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.
An evaluation was carried out under the supervision of the President and Chief Executive Officer and the Chief Financial Officer of the design
and effectiveness of the Companys internal controls over financial reporting. In making this evaluation, the President and Chief Executive Officer and the Chief Financial Officer used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in the 2013 Internal Control Integrated Framework, as was done in the prior years. Based on this evaluation, the President and Chief Executive Officer and the Chief Financial Officer concluded,
as of January 31, 2019, that the Companys internal controls over financial reporting could be considered ineffective as a result of a material weakness identified in the Companys internal controls over financial reporting related to the
accuracy and completeness of information used in the execution of internal controls over critical spreadsheets and reports created from data extracted from the Companys information systems. There were no material adjustments to the
Companys audited consolidated financial statements for the period ended January 31, 2019 and prior, however, as a result of the material weakness identified a possibility exists that material misstatements in the Companys financial
statements would not be prevented or detected on a timely basis in the future.
As part of the preparation of its first SOX certification
(as defined in Rules 13(a)-15(f) under the Exchange Act), the Company has and will continue implementing its compliance plan. The plan includes, but is not limited to, identifying and documenting all sources of information used in controls, training
the control owners and improving internal controls over financial reporting. The Company will, among other things, add additional steps to the validation of certain data extracted from the information systems and it will generally continue to
improve its information systems. Management has also discussed the material weakness with the Audit Committee, which will continue to review progress on the Companys remediation actions.
The Company has and will continue to take actions to remediate the material weakness, but the weakness will not be considered fully remediated
until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. No assurance can be provided at this time that the actions and remediation efforts
will effectively remediate the material weakness described above.
Notwithstanding the material weakness, management has concluded that
the Companys audited consolidated financial statements as at and for the year ended January 31, 2019 present fairly, in all material respects, the Company financial position, results of operations, changes in equity and cash flows in
accordance with IFRS. There were no material adjustments to the Companys audited consolidated financial statement for the year ended January 31, 2019 and there were no changes to previously released financial results.