Sun Jomar Rekenmeesters (Accounting Firm Hermanus)

Accounting your future wealth ...

      17 Flower Street
      Westcliff
      Hermanus
      7200
      South Africa
      
      Tel +27-28-3123245
      Fax +27-86-5407657
      
      enquiries@sunjomar.co.za
      www.sunjomar.co.za

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    ► Terms & Conditions






Accounting Services Terms and Conditions

Our:

Engagement Letter

-------------------------------------------------
AFRIKAANS VERSION
-------------------------------------------------

Datum

KliŽnt se Naam
KliŽnt se Kontakbesonderhede

Verwysingsnommer                                                      

Gewaardeerde KliŽnt

AANSTELLING:  KLIŽNT SE NAAM

Dit is vir ons firma aangenaam om ons aanstelling as rekenmeester van KliŽnt se Naam h/a KliŽnt se
Handelsnaam
te bevestig. Ons onderneem om die volgende dienste aan u te lewer:

  Rekeningkundige Jaarwerk, insluitend finansiŽle jaarstate en/of belastingberamings
                                             insluitend statutÍre ondersoeke en verslaglewering
  Diensburowerk, insluitend die byhou van boekhouding
                           insluitend BTW-administrasie
                           insluitend finansiŽle bestuurstate
  Inkomstebelasting-administrasie, insluitend dividend- en skenkingsbelasting- en algemene administrasie
                                                    insluitend jaarlikse belastingklaring sertifikate
  Werknemersbelasting-administrasie, insluitend EMP-rekonsiliasies en VOH-administrasie
                                                         insluitend EMP-opgawes
  WVF-administrasie, insluitend algemene administrasie
  Ongevalleversekering-administrasie, insluitend algemene administrasie
                                                         insluitend jaarlikse Brief van Goeie Stand
  Statistiekvorms, insluitend algemene administrasie
  Korporatiewe SekretariŽle Werk, insluitend optrede as geregistreerde kantoor
                                                      insluitend optrede as trustee
  Testamente en Boedel, insluitend boedelbeplanning en algemene administrasie
                                     insluitend optrede as eksekuteur en/of administrateur
  Enige ander toevallige werk of relevante werk wat van tyd-tot-tyd na ons firma verwys.

Ons aanstelling as rekenmeester is onderhewing aan die terme en voorwaardes verkrygbaar by
http://www.sunjomar.co.za/ of op aanvraag beskikbaar.

 
Ons vertrou dat u dit so in orde sal vind.
 
Die uwe
 
 
 
 
 
Mnr J D V de Kock
per
SUN JOMAR REKENMEESTERS
Ons stem in tot die terme, voorwaardes en doelstellings
van hierdie ooreenkoms.
 
 
 
 
 
 
...................................................................................
per
KLIŽNT SE NAAM
 

-------------------------------------------------
ENGLISH VERSION
-------------------------------------------------

Date

Client's Name
Client's Contact Details

Reference Number                                                      

Valued Client

APPOINTMENT:  CLIENT'S NAME

Our firm is pleased to confirm our appointment as accountant of Client's Name t/a Client's Trading Name.
We undertake to render the following services to you:

  Annual Accounting Work, including annual financial statements and/or tax calculations
                                          including statutory investigations and reporting
  Service Bureau Work, including the up to date keeping of bookkeeping
                                     including VAT-administration
                                     including financial management statements
  Income Tax-administration, including dividend- and donation tax- and general administration
                                            including annual tax clearance certificates
  Employees Tax-administration, including EMP-reconciliations and SDL-administration
                                                 including EMP-returns
  UIF-administration, including general administration
  Workmens Compensation Insurance-administration, including general administration
                                                                                 including annual Letter of Good Standing
  Statistical Forms, including general administration
  Corporate Secretarial Work, including acting as registered office
                                               including acting as trustee
  Wills and Estate, including estate planning and general administration
                            including acting as executor and/or administrator
  Any other coincidental work or relevant work referred to our firm from time-to-time.

Our appointment as accountant is subject to the terms and conditions obtainable at
http://www.sunjomar.co.za/ or available on request.

 
We trust that you will find this in order.
 
Regards
 
 
 
 
 
Mr J D V de Kock
per
SUN JOMAR ACCOUNTANTS
We agree to the terms, conditions and objectives
of this agreement.
 
 
 
 
 
 
...................................................................................
per
CLIENT'S NAME
 

Terms and Conditions

-------------------------------------------------
ENGLISH VERSION ONLY
-------------------------------------------------

Introduction

We are pleased to confirm acceptance of our engagement as auditor / accounting officer / accountant / trustee of the above Company / Close Corporation / Trust / Individual / Partnership / School / Church / Club / Welfare Organisation / Entity (hereafter referred to as the Client). This letter sets forth our understanding of the terms and objectives of our engagement, and the nature and scope of the services we will provide. The issue of this letter of engagement is recommended practice by the Auditing Standards Committee of The South African Institute of Chartered Accountants and The Institute of Commercial and Financial Accountants. It does not seek to limit our professional responsibilities below the standards that are expected of our profession.

Representations To Management

All representations made by us is strictly limited to the accounting services we will provide. We certify that we are duly qualified and have the necessary skills and experience to conduct such accounting services. Our qualifications are obtainable at http://www.sunjomar.co.za/ or is available on request.

Reporting To Client   (applicable if the service "Annual Accounting Work, including annual financial statements and/or tax calculations" is agreed upon)

We have been engaged to report on the annual financial statements of the Client in one of more possible ways. Our report, and the process leading up to that report, is determined by different factors. As such we will report to the Client on the annual financial statements in one of the following ways:

  • Compilation report for unregulated tax calculations   (applicable if the service "Annual Accounting Work, including annual financial statements and/or tax calculations" is agreed upon, but the service "Annual Accounting Work, including statutory investigations and reporting" is not agreed upon)

  • Compilation report for unregulated annual financial statements   (applicable if the service "Annual Accounting Work, including annual financial statements and/or tax calculations" is agreed upon, but the service "Annual Accounting Work, including statutory investigations and reporting" is not agreed upon)

  • Report of the Accounting Officer   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

  • Report of the Independent Reviewer   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

  • Audit Report   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

Each of the non-compilation regulated reports may include one or more qualifications depending on the outcome of our investigation leading to this report.

The type of report to the Client on the annual financial statements is mainly determined by the following factors:

  • The type of legal person or legal entity of the Client.

  • The size of the Client.

  • The effective management control over the Client.

  • The specific reporting requirements of the Client.

Investigation Services   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

We have been engaged to audit and report on the annual financial statements of the Client to be presented to the shareholders / regulatory board. Accordingly, we are required by statute to carry out our audit free of any restrictions. Although we will be pleased to advise and assist, the preparation of the financial statements is the responsibility of Management. Our responsibility is to express our opinion on these financial statements.

Our audit will be conducted in accordance with generally accepted auditing standards and will be planned and performed to obtain reasonable assurance that, in all material respects, fair presentation is achieved in the financial statements. Our audit will include:

  • Evaluation of the appropriateness of the accounting policies;

  • Examination, on a test basis, of evidence supporting the amounts and disclosures in the financial statements;

  • Assessment of the reasonableness of significant estimates; and

  • Consideration of the fairness of the overall financial statement presentation.

Our audit will include such tests as we consider necessary. The nature and extent of our tests may cover any aspect of the business operations, and will vary according to our assessment of what is material in the context of the Client's financial statements and, where we wish to place reliance on it, the effectiveness of the internal control structure.

At the conclusion of our audit, we will express an opinion as to whether or not the financial statements fairly present the financial position, results of operations and cash flow information of the Client, in conformity with generally accepted accounting practice / and in the manner required by the Companies Act No 71 of 2008.

The establishment and maintenance of an internal control structure, necessary to provide reasonable assurance that adopted policies and prescribed procedures are adhered to for the prevention of errors and irregularities, including fraud and illegal acts, rests with Management.

Our audit is designed to provide reasonable assurance of detecting errors and irregularities that are material to the financial statements. However, there are inherent limitations in an audit, for example:

  • We do not examine evidence supporting every transaction; and

  • Although we obtain an understanding of the accounting system and related controls to assist us in designing our audit, we study and evaluate only those controls on which we intend to rely.

Thus, irregularities, if they exist, may not necessarily be detected and you should not rely thereon to reveal irregularities. The audit tests we undertake, may however reveal such irregularities, if it exists.

Management will under no circumstances restrict the auditors in any means in the carrying out of our audit procedures.

Independent Review Services   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

 

Accounting Officer Services   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

We have been engaged to, in terms of the Close Corporation Act No 69 of 1984, determine that the annual financial statements agree with the accounting records of the Corporation, to review the appropriateness of the accounting policies represented to us as having been applied in the preparation of the financial statements and to report to the Members in respect of these matters. We are also obliged to take certain action if, during the performance of our duties as accounting officer, we become aware of any of the following:

  • A provision of the Close Corporation Act No 69 of 1984 has been contravened;

  • A change to the particulars in the founding statement has not been registered;

  • The annual financial statements indicate that the liabilities exceed the assets, reasonable valued;

  • The annual financial statements incorrectly indicate that the assets, reasonable valued, exceed the liabilities; and

  • The Corporation is not carrying on business and has no intention of resuming operations in the foreseeable future.

If in the performance of our duties we become aware of any contraventions of the Close Corporation Act No 69 of 1984, we will report them to you immediately. You should be aware that a contravention of the Act could result in the personal liability of Members.

Compilation Services   (applicable if the service "Annual Accounting Work, including annual financial statements and/or tax calculations" is agreed upon, but the service "Annual Accounting Work, including statutory investigations and reporting" is not agreed upon)

 

Reporting To Management   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

We shall report to you, normally in writing, any significant weaknesses in, or our observations on, the internal control structure and other areas that come to our notice and we consider should be brought to your attention.

Representations By Management

As part of our normal procedures, we will request you to provide written confirmation of oral representations that we have received from you during the course of our duties.

Such written representations are subject to the confirmation letter obtainable at http://www.sunjomar.co.za/ or available on request. The content of this confirmation letter includes the minimum required information supplied by the Company / Close Corporation / Trust / School / Church / Club / Welfare Organisation to our firm and is deemed to be represented by you to our firm prior to you and our firm signing your financial statements.   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

Documents Issued

To assist us with our audit / accounting duties of your financial statements, we shall request sight of all documents or statements that are to be issued with the financial statements.

We shall, for practical purposes, sign applicable financial and other reports, assuming that these reports, in the current form, will be approved and accepted by you in the near future. Our signing the reports will become binding only after your approval of the reports, and our signing the reports before your approval will bear the same legal implications as if we have not signed the reports.

Preparation Of Annual Financial Statements   (applicable if the service "Annual Accounting Work, including annual financial statements and/or tax calculations" is agreed upon)

We shall prepare annual financial statements of the Client for your consideration and approval from information presented to us by Management / and in accordance with generally accepted accounting practice that is applicable on the business. However, Management's statutory responsibility for ensuring that the financial statements give a fair presentation of the state of affairs and results of the Client's activities / and cash flow information, will continue.

Accounting Services   (applicable if the service "Service Bureau Work, including the up to date keeping of bookkeeping" is agreed upon)

We shall assist you with certain accounting services as follows:

  • We shall process your accounting records on a monthly basis on our internal computer and supply Management with detailed financial statements.   (applicable if the service "Service Bureau Work, including financial management statements" is agreed upon)

Whilst we may examine the accounting records and make certain enquiries in order to facilitate this work, an audit will not be carried out. In addition, our services are not designed to detect irregularities, including fraud. The financial statements will contain a restraint of opinion where it will clearly point out that we have not audited or reviewed the financial statements and therefore express no assurance thereon.

Value Added Tax Services   (applicable if the service "Service Bureau Work, including VAT-administration" is agreed upon)

We shall prepare VAT returns from the accounting records of the Client. In view of the penalties and interest for late submission of VAT returns, we shall expect to receive the necessary information by the 10th day of the month following the end of the return period. However, Management remains responsible for ensuring the completeness and accuracy of figures in the return and the timeliness of its submission.

Taxation Services   (applicable if the service "Income Tax-administration, including dividend- and donation tax- and general administration" is agreed upon)

For the purpose of assessment to normal tax, we shall prepare a computation of taxable income in respect of each accounting period in accordance with the provisions of the Income Tax Act No 58 of 1962 and Tax Administration Act No 28 of 2011. Subject to your approval, this will then be submitted to SARS after completion of the tax return. We shall respond to any queries raised by the assessor on the computations, reporting to you and advising as necessary on any contentious or disputed matters, whereupon we shall negotiate the agreement of the figures and advise you of liabilities and due dates of payment. We shall lodge notices of objection against excessive or incorrect assessments when such assessment notices are received by us. Objections against assessments are subject to statutory time limits, and it is important to ensure that assessment notices and other official notices from SARS are forwarded to us immediately on receipt. Where appropriate, we shall also advise as to appropriate provisional tax payments.

Your staff will deal with all other statutory tax returns, like VAT- / PAYE- / SITE- / IRP6- / IT3-forms, but we shall be pleased to advise on any of these matters, if so requested.

We shall be pleased to advise you generally on matters relating to the Client's normal tax liability, the implications of particular business transactions, and on related matters that you refer to us, such as employee benefits and pensions. You will appreciate that tax planning and advice of even the highest standard are based on interpretation of the law and experience with SARS. Therefore, the conclusions reached and views expressed are often matters of opinion rather than of certainty.

We confirm that it is your responsibility to provide us with complete and accurate information in respect of your taxation affairs. It is not our responsibility to ensure that you provide all relevant information to SARS.

If SARS has not recorded our address as your official postal address, we cannot be held responsible for any penalties or interest on the late submission of returns, or late payments or any taxes if the returns, assessments, and other relevant documents were not timeously presented to us for action.

We shall also assist you with certain additional taxation services as follows:

  • We shall annually apply for a tax clearance certificate from SARS.   (applicable if the service "Income Tax-administration, including annual tax clearance certificates" is agreed upon)

Payroll And Employees Tax Services   (applicable if the service "Employees Tax-administration, including EMP-reconciliations and SDL-administration" is agreed upon)

We shall administer your weekly / monthly payroll. We set out below details covering the payroll service that we will provide:

  • Calculation of the weekly / monthly salaries in accordance with the current PAYE and SITE (IRP10) Instructions and Guidelines issued by SARS authorities.

  • Weekly / monthly supply of appropriate payslips together with a copy of the payroll summary schedules.

  • Monthly advise of the amount payable to SARS in respect of PAYE and SITE tax, and both employees' and employer's unemployment insurance contributions.

  • Operation of a designated client bank account on the Client's behalf and to effect payments there from.

  • We shall prepare monthly EMP returns from the accounting records of the Client.   (applicable if the service "Employees Tax-administration, including EMP-returns" is agreed upon)

  • At the end of the tax year, to prepare the annual returns (forms IRP5(b) and IT3) and to forward it to SARS. We shall also prepare the personal end of year returns (forms IRP5 en IT3(a)) for the persons who have been included on the payroll during the tax year.

  • To deal with or respond to any communications from SARS relating to the Client's payroll.

You would be responsible for ensuring the following:

  • Amendments to the standing data required for each week's / month's payroll, like salary increases and overtime payments, are notified to us in writing by the 10th day of each month.

  • Sufficient funds are available on a timely basis to meet the full cost of the payments being made by us on your behalf.

Unemployment Insurance Services   (applicable if the service "UIF-administration, including general administration" is agreed upon)

 

Workmens Compensation Insurance Services   (applicable if the service "Workmens Compensation Insurance-administration, including general administration" is agreed upon)

 

We shall also assist you with certain additional administrative services as follows:

  • We shall annually apply for a Letter of Good Standing from the Workmens Compensation Insurance Fund.   (applicable if the service "Workmens Compensation Insurance-administration, including annual Letter of Good Standing" is agreed upon)

Statistical Forms Services   (applicable if the service "Statistical Forms, including general administration" is agreed upon)

 

Corporate Secretarial And Trust Services   (applicable if the service "Corporate Secretarial Work, including acting as registered office" is agreed upon)

We shall maintain the following registers in an up-to-date condition, and in the matter required by the Companies Act No 71 of 2008 / Close Corporation Act No 69 of 1984 / Constitution / Memorandum of Agreement:

  • Register of Members

  • Register of Debenture Holders

  • Register of Directors and Officers

  • Register of Pledges, Cessions and Bonds

  • Register of Interests in Contracts of Directors and Officers

  • Minute Books of the proceedings of General and Board Meetings

In order to do this, we shall need to be notified of any changes in the following:

  • Shareholders, their holdings or addresses

  • Directors or their particulars

  • Company secretary or his address

  • Creation, or satisfaction, of charges over the assets of the company

  • Members, their holdings or addresses

  • Registered office

On an annual basis, all companies are required, by law, to present the annual financial statements of the company before the members at the annual general meeting. In this context, we shall draft the appropriate documents in connection with their formal adoption, as follows:

  • Minutes of board meetings

  • Notices of the annual general meeting and other meetings

  • Letters of proxy

  • Minutes of the annual general meeting and other meetings

All companies and close corporations are required by law to have a registered office address. We shall act as registered office of your Company / Close Corporation and shall receive and handle all official notices on your behalf.

We shall be pleased to carry out any additional statutory work or provide advice in this area as and when required.

We shall be pleased to act as co-trustee of the Trust.   (applicable if the service "Corporate Secretarial Work, including acting as trustee" is agreed upon)

Estate Services   (applicable if the service "Wills and Estate, including estate planning and general administration" is agreed upon)

 

We shall be pleased to act as executor or administrator of your estate.   (applicable if the service "Wills and Estate, including acting as executor and/or administrator" is agreed upon)

Other Services   (applicable if the service "Any other coincidental work or relevant work referred to our firm from time-to-time." is agreed upon)

We shall offer the following services with pleasure:

  • Apply for a tax clearance certificate from SARS.

  • Apply for a Letter of Good Standing from the Workmens Compensation Insurance Fund.

  • Apply for relevant registrations and/or deregistrations from SARS, Workmens Compensation Insurance Fund, etc.

  • Escalate outstanding matters with SARS, Workmens Compensation Insurance Fund, etc.

  • Apply for the waiver of penalty and/or administrative penalty from SARS, Workmens Compensation Insurance Fund, etc.

  • Conduct general account maintenance on accounts with SARS, Workmens Compensation Insurance Fund, etc.

  • Apply for a tax directive from SARS.

  • Assist with costing and/or cash-flow and/or other financial analysis.

  • Issue a Broad Base Black Economic Empowerment letter.

  • Issue an income verification letter.

  • Issue a source of income letter.

  • Prepare an employment equity schedule.

  • Prepare a PAIA Manual.

  • Prepare a business valuation and/or conduct a due diligence business inspection and/or forensic accounting.

  • Prepare a forecast, budget and/or business plan.

  • Assist with a loan or other finance application and/or other business deal.

  • Assist with stocktake and/or other year-end procedures.

  • Assist with the acquiring of required documentation and/or information.

  • Assist with the producing of required statutory documentation and information.

  • Conduct formal and/or informal consultation and advice and/or tax planning and/or assist with retirement planning, financial planning and/or financial risk analysis.

  • Conduct formal and/or informal training and advice with regard to bookkeeping functions, accounting packages, etc.

  • Prepare and/or assist with trading agreements.

  • Assist with a corporate re-structuring.

  • Acting as commissioner of oath and/or producing certified copies of original documents.

  • Acting as a financial manager or financial director for a business or corporate entity.

  • Conducting functions and/or prepare documents to maintain and support this agreement between our firm and the Client.

  • Conducting functions to maintain and support our internal database and relevant external platforms with the information of the Client.

Accounting Fees

Our fees are based on the time spent on your affairs by our partners and staff, and on the levels of skill and responsibility involved. Our fees, plus expenses, will be debited for each of the main categories of work separately and will be billed at appropriate intervals during the course of the year. We encourage you to discuss the calculation of fees with us, if explanation is desired.

In the event that you are not in agreement with any fee raised you will notify us in writing of your objection within 30 days of our despatch of the fee note. Failure to do so will constitute acceptance of the fee.

Settlement is due on presentation of our invoices. In the event that invoices are not settled within 30 days of presentation, we reserve the right to charge compound interest monthly at 30% per annum, or at the maximum rate allowed by the National Credit Act No 34 of 2005, until the liability is settled. All payments will be allocated first as to interest, then as to outlays and then as to the longest outstanding fee. Notwithstanding anything to the contrary contained herein, should our accrued fees reach a level that we consider to be material, such accrued fees will become due and payable immediately upon presentation of our fee note, failing which the rendering of all further professional services will be suspended pending receipt of payment.

No relaxation or indulgence by our firm, including the acception of late payments, is deemed to be a waiver of our rights.

In the event of your appointing an alternative auditor / accounting officer / accountant / trustee in our stead, or otherwise terminating our mandate, we will be entitled to raise a fee upon receipt of such notification for an amount adequate to cover all work done and expenses incurred to date and not yet billed. In such event, you undertake to settle our account in full prior to our handing over books and records to you or to our successor.

In the event of the Client not being able to settle our account for any reason what so ever, whether the fees are due before liquidation of the legal entity or for services rendered after liquidation of the legal entity, we shall enjoy a preferential claim for the settlement of the outstanding fees and the Directors / Members / Partners / Trustees / Marriage Partner / Signatories shall be kept jointly and separately liable for settlement of the outstanding fees.

We may recover any costs, including attorney and client cost and collection commission, incurred by us to recover any of the named fees or paid-outs from you. If it become necessary to refer any affair regulated by this agreement to the court, the parties agree to limit the jurisdiction to the magistrate court.

Confidentiality And Prudence

We shall at all times and to the best of our abilities handle your affairs with prudence and shall handle all matters of which our partners and staff get to know of as strictly confidential.

Limitation Of Liability

All work to be performed by the firm is subject to the following limitations:

The firm's liability, howsoever incurred and in respect of all losses and/or damages, is limited to an amount equal to twice the professional fees paid to the firm in consideration for the particular work, or to an amount of R500 000, whichever is the lesser amount.

The firm's liability is furthermore limited, in respect of any item of work, to a period of 3 years from the completion date of that particular work giving rise to liability on the firm's part, notwithstanding the provisions of the Prescription Act No 68 of 1969 (as amended).

These limitations are in accordance with the recommendations made by our Professional Indemnity insurers.

General Administration

If Management, except for the audit work, want us to deliver additional accounting and secretarial services to the Client, you shall undertake to obtain written consent from every shareholder / member / trustee as required by the Auditing Profession Act No 26 of 2005 / and the Companies Act No 71 of 2008.   (applicable if the service "Annual Accounting Work, including statutory investigations and reporting" is agreed upon)

Management shall undertake to authorise our firm, Sun Jomar Accountants, in writing to collect any information needed in the execution of our services, from any banking institution, financial institution, insurance agent, office of the receiver of inland revenue, creditor, debtor or any other relevant outsider of the Client without any further notice and to pay any costs which may be debited by the third party.

The accounting records will be complete by the start of the annual services and, without finding the other elements of the bookkeeping less important, to include the following:

  • If there is any inventory on hand at the end of the year, a physical stocktake will be taken on or close to the year-end.

  • If there is any cash on hand at the end of the year, a physical cash count will be done on or close to the year-end.

  • If there are any fixed assets at the end of the year, those items will be produced descriptive, separate and complete in the form of a fixed asset schedule or a fixed asset register.

  • If there are any other bank accounts, whether with beneficial balances or overdraft facilities, that are currently not shown on the annual financial statements, you shall supply us with the relevant information.

If Management should choose with regard to the Client's year-end, as well as the time needed to finalise the bookkeeping, that we conduct the annual work at a specific time of year, you will indicate the chosen timespan for conducting the work, as well as any current or possible cut off dates for the completing of the work, beforehand. We shall try to accommodate you within this timespan.

Agreement Of Terms

No variation of the terms and conditions of this engagement will be of any force or effect, unless reduced to writing, signed by all of the signatories hereto and kept on file at our firm's address.

Once it has been agreed, this letter will remain effective until it is replaced. We shall be grateful if you will confirm your agreement to the terms of this letter by signing and returning the enclosed copy, or let us know if the terms of our engagement are not in accordance with your understanding.

Confirmation Letter

-------------------------------------------------
ENGLISH VERSION ONLY
-------------------------------------------------

In connection with your duties as auditor / accounting officer / accountant / trustee of the above Company / Close Corporation / Trust / Individual / Partnership / School / Church / Club / Welfare Organisation / Entity (hereafter referred to as the Client) for the year ended at year-end, we confirm, to the best of our knowledge and belief, that the financial statements fairly present the state of affairs and results of the operations of the Client in accordance with generally accepted accounting practice appropriate to the business, and that there have been no contraventions of the Companies Act No 71 of 2008 / Close Corporation Act No 69 of 1984 / any applicable legislation. We confirm that the information in these financial statements is the representations of the directors / members / board.

We confirm, to the best of our knowledge and belief, the following representations relating to your engagement:

  • The Client's accounting policies and the methods followed in applying them are disclosed in the financial statements and there have been no changes in the accounting policies during the financial year under review, except as is described herewith.

  • We have made available to you all accounting records and minutes of the Client.

  • We are not aware of any material transactions or events that have not been properly recorded in the accounting records.

  • We have advised you of all decisions taken at meetings of directors / members / board / committees or managers that may affect the financial statements.

  • We are not aware of any violations of laws or regulations, the effects of which should be considered for disclosure or inclusion in the financial statements.

  • Except as disclosed in the financial statements, there are no events that have occurred subsequent to the balance sheet date that would require adjustment to, or disclosure in, the financial statements.

  • Where applicable, provision has been made in the financial statements, for losses sustained as a result of trading activities and, where appropriate, current assets have been reduced to net realisable values.

  • The Client has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.

  • The Client has proper proprietorship of all assets, and except as disclosed in the financial statements, there are no liens or encumbrances on such assets or pledges of any assets.

  • The Client has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of non-compliance.

  • The statutory documents / founding statement / constitution that have been made available to you is a copy of the (latest amended) statutory documents founding statement / constitution that have been lodged with the CIPC and there have been no changes thereto which have not been registered.

  • The Client has at all times been managed in a responsible and conscientious manner by the directors / members / board and neither the Client or its creditors or shareholders / members have been unfairly prejudiced or detrimentally affected as a result of the reckless or negligent conduct of any of the directors / members / board members.

  • The Client has no intention to cease business activities. The Client is theoretically solvent due to its assets exceeding its liabilities.

  • We confirm that the following transactions occurred between ourselves and the Client during the financial year ended at year-end:

      • Directors / Members / Board Members Remuneration

      • Salary

      • Allowances

      • Other Benefits

      • Interest: Loan Accounts

      • Rental Income

      • Dividends

      • Share / Members' Contributions / Interests

      • Loan Accounts

      • Opening Balances

      • Contributions

      • Repayments

      • Transactions (as above)

      • Closing Balances

    • The unsecured loans granted to the Client are interest free with no set terms of repayment.

    • We confirm that we have acquainted ourselves with the entries on our loan accounts and that the balances shown above are correct, also that the balances include all transactions between ourselves and the company up to year-end.

    • We are satisfied that all distributions to us have been made in accordance with the solvency and liquidity requirements of sections 4 and 46 of the Companies Act No 71 of 2008 / section 51 of the Close Corporation Act No 69 of 1984 / any applicable legislation. In addition to the above we are aware that we will be liable to the company for any payment received contrary to section 46(6) of the Companies Act No 71 of 2008 / section 51(2) of the Close Corporation Act No 69 of 1984 / other legislation.

  • With regard to your investigation into the financial statements of the Client, we hereby acknowledge, with regard to under-mentioned matters, that, in our opinion and the best of our knowledge:

    • The stock of the Client to the value of stock amount is the total stock of the Client and consists of stock of the Client only, wherever it is located, and also that it is free of any liens or encumbrances, except if so stated in the financial statements.

    • All executed orders (and finished contracts) are invoiced and stock, which is associated with invoiced sales, is excluded.

    • All liabilities regarding the stock are determined in the financial statements of the Client.

    • Steps were taken to ensure that no stock became over-valuated since the end of the book year, due to a later material decrease in the replacement prices, or due to a decrease in sales prices in such a manner that it constituted a justified supply.

    • Insurance cover against fire and other risks was reviewed by us and in our opinion this cover is adequate and in relation to the value of the stock, with due observance of the relevant insurance risks.

    • The assets shown in the accounting records of the Client is the property of the Client and nothing thereof is pledged or committed as security for any liability of the company or any other person, besides those indicated in the financial statements.

    • Fixed assets are kept in good working condition and no need exists, for any reason, technologically or otherwise, to substantially replace or renew these.

    • Current assets of the Client if realised in the normal run of business at year-end, has a value not less than the amount as stated in the balance sheet at the mentioned date.

    • All amounts liable to the Client on above-mentioned date were correctly stated in the accounting records which show the total amount owed to the Client. All such amounts is valid and due and are not subject to deductions for rebates, except for normal cash rebates, allowances with regard to trading stock, contractual breach, price adjustments or for any other deductions of a similar kind. All non-recoverable accounts, which we are aware of, have been written off.

    • Amounts owed to the Client do not include debits for trading stock on appro or on consignment at the above-mentioned date, nor debits for trading stock delivered after that date.

    • Daily control over assets and securities are satisfactory to prevent substantial irregularities.

    • Insurance cover against fire and other risks has been reviewed and in our opinion this cover is adequate and in relation to the value or replacement value of, both insurable assets and to extent of the relevant insurance risk.

    • All determined liabilities in the Client's accounting records, which indicate the total liability of the Client at the abovementioned date, were recorded.

    • There were no conditional obligations at the abovementioned date other than those shown in the financial statements.

    • No liabilities existed at the balance sheet date with regard to future expenses, except:

      • Contracts and orders for the supply of goods and services in the normal run of business. None of these was for more than the normal usage, nor at higher prices than the current replacement cost.

      • Finance lease agreements as shown in the financial statements.

      • Operating lease agreements as shown in the financial statements.

      • Contracts for capital expenses and capital expenditure authorised by the directors / members / board, which have not been contracted for, as reflected in the financial statements.

    • All material non-recurring or exceptional income and/or expense items are shown separately in the income statement.

    • No obligations exist to sell the products of the Client at lower prices than the current selling prices and nonmaterial losses are anticipated for in performing of or inability to carry out any sales obligation.

    • No options were granted with regard to the unissued share capital / members contributions of the Client, except those shown in the financial statements.

    • All minutes and written decisions appear in the minute book of the Client and all share-issues and -transfers appear in the share register.

    • We are not aware of any material facts, transactions, accounts or agreements which are not properly shown in the accounting records.

    • No events have taken place or business traced since the balance sheet date which would make the balance sheet or income statement misleading.

    • All records, accounting or otherwise, with reference to the Client's income, expenditure and financial position, was submitted to you.

    • No shortages, embezzlement or irregularities occurred which we have not informed you about.

    • It is our understanding that the accounting records of the Client and other supporting evidence was investigated in the manner deemed necessary for the purpose of your report on the financial statements, but that the investigation will not necessarily reveal irregularities, should such irregularities exist.

  • The financial statements as at year-end was presented at the annual general shareholders / members / executive meeting by the chairman. After discussion the financial statements were approved by the majority of shareholders / members with voting rights. The following was resolved:

    • The income reflected in the income statement represents the total income of the Client for the period under review.

    • Expenditure reflected in the income statement including expenditure incurred by the Client not supported by proper vouchers is approved.

    • The retained income will be kept intact to ensure the continued liquidity of the Client.

    • After discussion the value of all assets and liabilities in the balance sheet is accepted as correct and approved.

    • It is resolved that the financial statements will be signed by one or two of the directors / members / board members on behalf of the shareholders / members.

    • Distributions to shareholders / members during the year under review are accepted as correct and approved after discussion.

    • Sun Jomar Rekenmeesters is re-appointed as auditor / accounting officer / accountant / trustee to the Client and their remuneration for the past period, as indicated in their account, is approved for payment.

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