Auditor’s preliminary report

KPMG Inc., the group's independent auditor has reviewed the preliminary financial statements contained in this preliminary report, and has expressed an unmodified conclusion on the preliminary financial statements. Their review report is available for inspection at the company's registered office. These preliminary financial statements for the year ended 31 August 2009 have been prepared in accordance with accounting policies that comply with International Financial Reporting Standards ("IFRS") and the disclosure requirements of IAS 34, and have been consistently applied with those adopted for the year ended 31 August 2008, except for IFRIC 13 – Customer Loyalty Programmes. The group adopted IFRIC 13, "Customer Loyalty Programmes", on 1 September 2008.

The interpretation applies to customer loyalty award credits that an entity grants to its customers as part of a sales transaction, in terms of IAS 18, and subject to meeting any further qualifying conditions, the customer can redeem in the future for free or discounted goods or services. The interpretation requires that an entity recognises credits that it awards to customers as a separately identifiable component of revenue, which would be deferred at the date of the initial sale.

The results for the year ended 31 August 2008 have been restated accordingly. The net impact on the income statement for the year ended 31 August 2008 is a R1.2 million decrease to profit after tax. The net impact on the balance sheet as at 31 August 2008 is a R2.9 million decrease in shareholders' equity, and a R2.9 million increase in total liabilities.


Registered address: Cnr Searle and Pontac Streets, Cape Town 8001.
 PO Box 5142, Cape Town 8000

Directors: DM Nurek* (Chairman), F Abrahams*, JA Bester*, BD Engelbrecht, MJ Harvey, F Jakoet*, DA Kneale# (Chief Executive Officer), M Rosen*, KDM Warburton (Chief Financial Officer)   * non-executive   # British

Transfer secretaries: Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg 2001. PO Box 61051, Marshalltown 2107

Sponsor: Investec Bank Limited

Registration number: 1996/000645/06

Share code: CLS

ISIN: ZAE000134854