accounting policy information.

We do not express an opinion on the financial statements of ABC Proprietary Limited. Because of the significance of the matters described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

######## Basis for Disclaimer of Opinion

As indicated in Note X to the financial statements, the company incurred a net loss of Rxxx for the year ended 31 December 20XX (20X0: Rxxx) and, at that date, its total liabilities exceeded its total assets by Rxxx (20XX: Rxxx). The note states that the company will continue to receive financial support from the related parties; however, the directors have not provided us with agreements from the related parties committing funding for the foreseeable future. The directors have also not provided us with cash flow forecasts to support the appropriateness of the financial statements being prepared using the going concern basis of accounting. Consequently we were unable to confirm or dispel whether it is appropriate to prepare the financial statements using the going concern basis of accounting. Furthermore, International Accounting Standard 16, Property, Plant and Equipment , requires the depreciable amount of depreciable assets to be allocated on a systemic basis over the assets ' useful lives. No depreciation has been recognised in respect of the company ' s plant and equipment. Consequently, plant and equipment, included in Note X to the financial statements, is overstated by Rxxx (20XX : Rxxx), while income tax, net income and shareholders' equity is overstated by Rxxx (20XX: Rxxx), Rxxx (20XX: Rxxx) and Rxxx (20XX: Rxxx) respectively. These required adjustments are considered material to the financial statements as a whole.

######## Other Matter - Reports Required by the Companies Act of South Africa

The annual financial statements include the Directors' Report as required by the Companies Act of South Africa. The directors are responsible for this other information. We have read the other information and, in doing so, considered whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. However, due to the disclaimer of opinion in terms of the International Standard on Auditing (ISA) 705 (Revised), Modifications to the Opinion in the Independent Auditor's Report , we are unable to report further on this other information.

######## Responsibilities of the Directors for the Financial Statements

The directors are responsible for the preparation and fair presentation of the financial statements, in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.