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51
Report of the Independent Auditors
To the shareholders of John Daniel Holdings
Limited and its subsidiaries
We have audited the accompanying annual financial state-
ments of John Daniel Holdings Limited and its subsidiar-
ies, which comprise the directors’ report, the consolidated
statement of financial position as at 30 September 2011,
the consolidated statement of comprehensive income,
the statement of changes in equity and consolidated
statement of cash flows for the 15 months then ended, a
summary of significant accounting policies and other ex-
planatory notes, as set out on pages 53 to 116.
Directors’ Responsibility for the Financial
Statements
The company’s directors are responsible for the prepara-
tion and fair presentation of these annual financial state-
ments in accordance with International Financial Report-
ing Standards, the JSE listing requirements and in the
manner required by the Companies Act 71 of 2008. This
responsibility includes: designing, implementing and
maintaining internal control relevant to the preparation
and fair presentation of annual financial statements that
are free frommaterial misstatement,whether due to fraud
or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are rea-
sonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these an-
nual financial statements based on our audit.We conduct-
ed our audit in accordance with International Standards
on Auditing.Those standards require that we comply with
ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the annual financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the annual
financial statements. The procedures selected depend
on the auditors’ judgement, including the assessment of
the risks of material misstatement of the annual financial
statements,whether due to fraud or error. In making those
risk assessments, the auditor considers internal control rel-
evant to the entity’s preparation and fair presentation of
the annual financial statements in order to design audit
procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the ef-
fectiveness of the entity’s internal control. An audit also in-
cludes evaluating the appropriateness of accounting poli-
cies used and the reasonableness of accounting estimates
made by the directors, as well as evaluating the overall
presentation of the annual financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the annual financial statements present
fairly, in all material respects, the financial position of the
company as of 30 September 2011, and of its financial per-
formance and its cash flows for the 15 months then ended
in accordance with International Financial Reporting Stan-
dards, the JSE listing requirements and in the manner re-
quired by the Companies Act 71 of 2008.
Emphasis of Matter
Without qualifying our opinion, we draw attention to the
directors report which indicates that the company had ac-
cumulated losses of R 41 518 598 after minority interest
for the 15 months ended 30 September 2011.
The directors’ report also indicates that these conditions,
along with other matters, indicate the existence of a mate-
rial uncertainty which may cast significant doubt on the
company’s ability to continue as a going concern.
AM Smith and Company Inc
Registered Auditors
15 December 2011
774 Waterval Road, Little Falls, 1724