#### 25. Disclaimer of Opinion on the Financial Performance and Cash Flows and Qualified Opinion on the Financial Position - Inability to Obtain Sufficient Appropriate Audit Evidence in respect of Opening Balances

Circumstances include: The audit of a complete set of financial statements of a private company in terms of the Companies • Act of South Africa, prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board. The company is not a PIE , as defined in the IRBA Code. The auditor's report therefore excludes • the additional disclosures required by the IRBA Rules on: Enhanced Auditor Reporting; and o Audit Tenure. o The audit is not a group audit (i.e. ISA 600 (Revised) does not apply). • During the prior year, the company's financial statements were subject to an independent review , • in terms of the Companies Act of South Africa. During the current year, the directors of the company requested an audit of the financial statements. Corresponding figures presented in the current year financial statements were subject to an • independent review, in terms of the Companies Act of South Africa, and a review conclusion was issued on those figures. The directors did not believe that the retrospective application of additional procedures on the opening balances was warranted, as the level of assurance in the prior year was appropriate in accordance with the Companies Act of South Africa. The auditor was unable to obtain sufficient appropriate audit evidence that the closing balances from the prior year were free of material misstatement, and have been brought forward correctly. The auditor was unable to obtain alternative audit evidence on the opening balances. Since opening balances enter into the determination of the financial performance and cash flows, the auditor was unable to determine whether adjustments might have been necessary in respect of the movements in the statement of comprehensive income, the net cash flows from operating activities reported in the statement of cash flows and the changes in equity reported in the statement of changes in equity. In addition, the auditor's opinion on the current year's financial position is modified because of • the possible effects of this matter on the comparability of the current year's financial position with that of the prior year. The auditor has concluded that the effects or possible effects of these matters on the current • year's figures are material and pervasive to the financial performance and cash flows and a modified (i.e. 'disclaimer') opinion is appropriate , based on the audit evidence obtained. Furthermore, the possible effects of the matter above on the comparability of the current year's financial position with that of the prior year is material but not pervasive to the financial statements and a modified (i.e. 'qualified') opinion is appropriate , based on the audit evidence obtained. Based on the audit evidence obtained, the auditor has concluded that a material uncertainty does • not exist related to events or conditions that may cast significant doubt on the company 's ability to continue as a going concern. Key audit matters are not required to be reported (as the company is neither listed nor a PIE). • Furthermore, ISA 705 (Revised) prohibits the auditor from communicating key audit matters when