Director's Responsibilities and Approval

Director's Responsibilities and Approval

The director is required by the Companies Act of South Africa to maintain adequate accoun ng records and is responsible for the content and integrity of the annual financial statements and related financial informa on included in this report. It is his responsibility to ensure that the annual financial statements sa sfy the financial repor ng standards as to form and content and present fairly the statement of financial posi on, results of opera ons and business of the company, and explain the transac ons and financial posi on of the business of the company at the end of the financial year. The annual financial statements are based upon appropriate accoun ng policies consistently applied throughout the company and supported by reasonable and prudent judgements and es mates.

The director acknowledges that he is ul mately responsible for the system of internal financial control established by the company and place considerable importance on maintaining a strong control environment. To enable the director to meet these responsibili es, the director sets standards for internal control aimed at reducing the risk of error or loss in a cost effec ve manner. The standards include the proper delega on of responsibili es within a clearly defined framework, effec ve accoun ng procedures and adequate segrega on of du es to ensure an acceptable level of risk. These controls are monitored throughout the company and all employees are required to maintain the highest ethical standards in ensuring the company's business is conducted in a manner that in all reasonable circumstances is above reproach.

The focus of risk management in the company is on iden fying, assessing, managing and monitoring all known forms of risk across the company. While opera ng risk cannot be fully eliminated, the company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The director is of the opinion, based on the informa on and explana ons given by management and the external auditors, that the system of internal control provides reasonable assurance that the financial records may be relied on for the prepara on of the annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. The going-concern basis has been adopted in preparing the financial statements. Based on forecasts and available cash resources the director has no reason to believe that the company will not be a going concern in the foreseeable future. The financial statements support the viability of the company.

The annual financial statements have been audited by the independent audi ng firm, Dra worx Auditors, who have been given unrestricted access to all financial records and related data, including minutes of all mee ngs of shareholder, the director and commi ees of the director. The director believes that all representa ons made to the independent auditor during the audit were valid and appropriate. The external auditors' unqualified audit report is presented on pages 4 to 5.

The annual financial statements as set out on pages 6 to 20 were approved by the board on 31 May 2017 and were signed by him.

John Smith

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