purple capital - jse · 2016-07-06 · purple capital limited integrated annual report 2013 1...

PURPLE CAPITALINTEGRATED ANNUAL REPORTfor the year ended 31 August 2013


Stakeholder Value

PurSuit of excellence

leaderShiP

PaSSion

diVerSityeducation

relationShiPS

hard work

team work

Product offering

extraordinary returnS

truSt

tranSParency

SerVice excellence

embracing change

reSPect

commitment

relationShiPentrePreneurial SPirit

innoVationriSk control

Pride

Stakeholder Value


leaderShiP

PaSSion

diVerSity

education

relationShiPS

hard work

team work

Product offering


truSt

embracing change

reSPect

relationShiP

entrePreneurial SPirit

innoVation

riSk control

Pride

Stakeholder Value


Value creation

PaSSion

diVerSity

education

relationShiPS

hard work

team work

Product offering


tranSParency



Stakeholder Value


leaderShiP

diVerSity

education

relationShiPS

hard workteam work

Product offering


SerVice excellence

embracing change

reSPect

commitment


innoVation

InvestIng Is Personal – we get It

gt Is a team sPort

leadershIP

PassIon

dIversIty

team work

Product offerIng

extraordInary returns

trust

transParency

servIce excellence

relatIonshIP

InnovatIon

rIsk control

contents

Chairman’s letter 1

Group at a glance 2

Salient features 3

How we work 4

Chief Executive Officer’s report 6

GT247.com review 8

GT Private Broking review 9

Emperor Asset Management review 10

Chief Financial Officer’s report 12

Ethical leadership and corporate citizenship 14

Financial statements 18

Notice of annual general meeting 72

Shareholder rights 78

Brief curriculum vitae of directors standing for election 79

Corporate information 80

Form of proxy Attached

Form of surrender Attached

Our team ibc

PURPLE CAPITAL LIMITED INTEGRATED ANNUAL REPORT 2013 1


chaIrman’s letterInvestment strategies, trading decisions and price discovery used to emerge from late afternoon dining rooms

where stock brokers and clients shared rare whiskey, cigars and information reserved for the select few. Not

any more. We’re in the age of computers and cleverness now – equal, instant information access, probability

matrices, risk management and mathematics. You have to be involved.

Stock selection, timing, and of course time itself are still the foundations of successful investment. Discipline,

objectivity, risk management and technology still define the successful trader. These things will not change. What

has changed already are the engines and expertise that deliver relative advantage and drive outperformance.

Most asset managers don’t beat the Indices they invest in. We have.

Most investors can’t cross the trading divide. You can.

GT247.com and Emperor Asset Management bring technology and experience together to offer you the best of

both worlds :

real time, all the time (24/7) access to your portfolio;

next day access to your cash, no questions, no forms;

quantitative, algorithm driven objectivity in the investment process;

leveraged trading in CFDs and Spreads across shares, commodities, indices and currencies; and

individual portfolio refinement, stock selection or exclusion and gearing choices.

Purple Capital is all of this, under one roof, within the same relationship.

GT247.com is a leading retail derivatives trader in South Africa. Emperor Asset Management has returned more

than double the JSE Top 40 return over nine years.

This is what individuals have been waiting for – an expert skipper but a hand on the tiller of your own investing

and trading expectations.

REAL TIME ACCEss

LONG TERM PERfORMANCE

what’s stopping you?

Mark BarnesChairman

grouP at a glanceMarkets

Shares

Indices

Commodities

Forex

Bonds

Investment strategy

Long/short equity

Leverage

Quantitative

Momentum

Yield/value

Blue Chips

Products Spreads

Contracts for Difference

(CFDs)

Binary Options

Investment philosophy

Transparent

Innovative

Disciplined

Bespoke

PURPLE CAPITAL LIMITED INTEGRATED ANNUAL REPORT 20132

Purple Capital also has an empowerment stake in Real People.

salIent features

CLIEnT fUnds

r423,4Mn

REvEnUE

r82,9MnConTInUIngoPERATIons

EBITDA* of R17,9 million prior to restructuring costs of R4,6 million

Capital distribution of two cents per share

Client funds increased by 93% to R423,4 million

Revenue from continuing operations increased by 5,7% to R82,9 million

Unprofitable Gaming and Treasury interests were sold during the year

PURPLE CAPITAL IS A DERIvATIvES TRADING AND ASSET MANAGEMENT BUSINESSPurple Capital Limited, registered and incorporated in the Republic of South Africa, is a financial services company listed on the “Financial

– general finance” sector of the Johannesburg Stock Exchange.

EBITdA*

r17,9MnConTInUIngoPERATIons

dIsTRIBUTIon

two CEnTsPER shARE


* Earnings before interest, tax, depreciation, amortisation, fair value adjustments and restructuring costs.


how we work

sALEs And MARkETIng

foREX

IndICEs

AssET MAnAgEMEnT

sTRATEgIEs

CoMModITIEs

fInancIalmarkets

shAREs

CLIEnT sERvICE

Our core assets enable the business to cater to the investing needs of our clients through providing them with ease of access to a wide range of financial markets through three distinct client offerings. Each offering is designed to satisfy the specific investing requirements of our clients, from those that prefer to self invest, or maybe require the input of a private broker, or those that prefer the more traditional route of investing in a proven asset management strategy.

Our DNA is built around our six core assets, all of which are aimed at servicing our clients and providing them with ease of access to the financial markets in a manner in which they are comfortable and equipped.

TechnologyOur technology base, developed over a decade to service our online trading business, has enabled us to now offer a unique asset management product in the form of Emperor Asset Management.

Risk managementOur risk management processes and systems enable the business to identify risk on a real time basis with the two primary risks being client credit risk and market risk.

Client credit risk

Client credit risk arises when a client’s total funds on deposit are insufficient to cover trading losses. Our tiered margining policy and real time monitoring of client risk are our primary tools for mitigating client credit risk. This essentially involves holding a margin on every open client position which is sufficient to absorb sudden movements in a client’s open positions, thereby providing the client with the opportunity to top up his margin in order to hold the position or alternatively allowing the business sufficient time to close out the client’s positions prior to any loss being incurred.

Our online platforms allow clients to manage their own exposures through guaranteed and non-guaranteed stop and other order types.

Market risk

Market risk arises as a result of general market price movement. Our risk department monitors all client positions on a real time basis to ensure adherence to market risk limits set by the Risk Committee. The business operates within these limits by hedging our market risk exposure with our prime broker as and when required. Due to the size of our book, client positions often offset each other, creating a natural hedge. All positions taken by our Asset Management Division are hedged 100% with our prime broker, despite potential offsetting opportunities.

People and experienceOur people are continuously developing their skill sets to ensure that we are equipped to support and grow the business, while servicing the needs of our clients.

Asset management strategiesEmperor Asset Management currently runs a long-short equity fund with an algorithm-based quantitative strategy. Although this is the first fund that we have offered to the public, Emperor Asset Management plans to launch, at least one additional fund during the next financial year.

Client serviceWe are committed to providing our clients with the requisite administrative, technical and educational support required to trade confidently and with ease.

sales and marketingThe business has a two pronged approach to acquiring clients, comprising an outbound sales force in Johannesburg, Cape Town and Durban and an online sales team based in Johannesburg, both supported by the Group’s marketing strategy.

Through our various products, clients are able to take positions on movements

in financial markets.

The financial markets offered by the business include:

shares: performance of shares of companies listed on the Johannesburg Stock Exchange, that satisfy pre-determined liquidity requirements;

Indices: the movements in various local and international stock indices such as the ALSI, S&P and Dow Jones;

Commodities: the prices of major resources like gold and silver; and

forex: the relative strength of one currency in relation to another such as the USD versus the Euro.

Bonds: the interest rate of the most liquid local and international government Treasuries.

RIsk MAnAgEMEnT

core assets

TEChnoLogy

PEoPLE And EXPERIEnCE

Bonds


hIgh nET woRTh

clIents

RETAIL

sELf InvEsTIng

sPREAds

ConTRACTs foR

dIffEREnCE

Revenue is primarily derived through charging dealing spreads and commissions on each transaction. These charges are determined with reference to the asset type and the product. A funding charge is applied to positions held overnight, being a charge for the leverage offered.

Revenue is driven by the amount of client funds on deposit with the business and the level of client trading activity. Although client funds on deposit can be directly influenced by sales and marketing efforts, the level of client activity is largely driven by market conditions. Periods of prolonged investor confidence, or alternatively high volatility, result in higher levels of client trading activity.

The products offered by the business allow our clients to take advantage of upward or downward movements infinancial markets without needing to own the underlying asset or lay out the full value for the underlying asset (providing the client with leverage). Each of our client offerings utilise and leverage off the core products offered by the business.

spreads

Financial spread trading provides clients with exposure to the price movement of an asset. The size of the client’s profit or loss is driven by the extent and direction of the price movement. Clients can obtain exposure to the movement in a wide range of international and local indices, commodities and currencies.

Contracts for difference (Cfds)

CFDs are leveraged instruments that allow clients to take advantage of a change in share prices, through placing a fraction of the value of the underlying share’s price with the business. We offer CFDs on shares listed on the Johannesburg Stock Exchange that satisfy our predetermined liquidity requirements.

Binary options

Binary Options are instruments that provide a client with the opportunity to predict whether the price of a specific asset will behave in a specific way during a specified period, for instance, “Will the price of the asset go up or down during the day?”.

The business operates under three distinct business units, each with its own brand and tailored client offering. The business has evolved over the past few years through extending its client offering, from a pure online self investing service provider, to include a Private Broking and Asset Management offering.

self investingThe self investing offering, operating under the brand GT247.com, enables clients to interact with the business online from opening an account, to depositing funds, trading and withdrawing funds. Our social trading community, “The Wire” allows our self investing clients to communicate with other like minded traders tracking each other’s performance, sharing investing ideas and debating certain trades. This along with various initiatives to educate our clients, competitive pricing and client service has resulted in GT247.com being ranked second in the Business Day Investors Monthly Stockbroker Awards in the CFD Provider category;

Private brokingOur Private Broking division, operating under the brand GT Private Broking, services the needs of High Net Worth clients, that prefer a high touch personalised service.

Our experienced traders tailor their service offering depending on the client’s requirements, preferences and needs, which would include the following:

Advice and opinions regarding certain trades being considered by the client;

Providing the client with trade ideas and strategies;

Servicing the clients via telephone or email in order to keep them updated on existing trades or to enable them to open or close trades; and

Ensuring all queries are resolved promptly.

This service is provided at a slight premium to our self investing offering due to its high touch personalised nature, however, the trading results of our GT Private Broking clients have historically surpassed those of our self investing clients.

Asset managementOur most recent addition to our client offering is our asset management product, offered under the brand Emperor Asset Management. Not only does this product enable us to participate in a broader sector of the investing market, it also leverages off the core assets, cost base and products (specifically CFDs) of the existing business, enabling the business to benefit from its traditional revenue streams in addition to general asset management fees.

clIentofferIng

AssET MAnAgEMEnT

PRIvATE BRokIng

ProductofferIng

BInARy oPTIons

hEdgE fUnds


chIef executIve offIcer’s rePortI am pleased to report another year of Group revenue growth and a solid set of financial results from our core businesses in 2013. Whilst Group revenue growth posted was modest at just 5,74%, revenue from our core derivative trading and asset management operations increased by 8,61% and produced an EBITDA of R17,9 million (before restructuring costs of R4,6 million) recording strong growth of 34,5% over the same period in 2012.

strategy reviewIn February 2013 the executive and shareholders of Purple Capital agreed that the time was right to re-focus and align the forward strategy of the Group around its core retail financial operating divisions in GT247.com, GT Private Broking (GTPB) and Emperor Asset Management (EAM).

Time, capital and resources invested in other operating businesses had run their course and it was appropriate for the Group to realise value and shut down unprofitable lines of business.

It is worth pausing on the result and paying attention to why we are confident of the real synergies, value and opportunity created in the outcome.

To fully appreciate this transformation, which started back in 2010, you need to understand that GT247.com was primarily built to cater to the demanding requirements of active day traders and self-directed investors. Over the last 12 years we have invested hundreds of millions of rands in successfully meeting and marketing to this target audience. A large portion of this investment has enriched our technology platforms, built out our brand, sharpened our sales approach and secured an impressive retail distribution network. Importantly, it has provided us with the foundation and platform to launch new initiatives and evolve our business model.

The fact is that in South Africa self-directed investors represent the smallest and slowest growing group of all investor archetypes; many more instead continue to seek out an asset manager to look after their investments. This is not true in more mature markets where over the last decade, thanks to advances in technology and the staggering reach of the internet, strong growth has been achieved in self-directed investment.

We discovered that investing is not what it used to be either; gone are the days of waiting ages for statements and even longer for meaningful returns. The world continues to change faster, we are more connected and advances in financial instruments and technology have enabled us to shorten our time frames whilst raising our expectations of asset management services, structures and returns.

Our insight from all of this was that the traditional asset managers were not evolving at the same rate, were reluctant to innovate and had largely under invested in the technology advances of the last decade. At the same time they seemed unwilling to be early adopters of derivate instruments, like CFDs, and continued to approach alternative asset management strategies, like those employed by hedge funds, with caution. In the result creating a niche for the emergence of a new breed of asset managers under the hedge fund banner.

Hedge fund managers seeking to gain exposure to equities in South Africa largely trade in CFDs. CFDs finance shares exactly

as mortgage bonds finance houses. They are conceptually almost identical and practically just as useful and they are fast gaining broad market acceptance in South Africa (the JSE recently launched a listed CFD contract) following the trend set in markets like the UK where they continue to drive the largest part of exchange liquidity and are the de facto way to trade a broad range of financial asset classes like stocks, currencies, commodities, indices and bonds.

This provided GT247.com, in 2010, with a unique opportunity to establish an alternative asset manager, Emperor Asset Management, where we could leverage off our extensive understanding and experience of CFDs, our comprehensive and real time approach to trading platforms and risk management, our trusted analytics of highly successful hedge fund managers and finally one of the largest distribution networks in SA of retail investors already participating in derivative trading and investing activities.

From the potential clients that were drawn to us as a result of our sales and marketing activities only 20% were interested and equipped to engage directly in trading and investing, the rest were seeking investment products. It therefore made strategic sense for us to consider catering to this demand.

We were now capable of addressing the investing and trading requirements of both ends of the client spectrum and have significantly increased our target audience and with it, the opportunity to grow Group revenue. Until recently an important part of our strategy was still under construction, addressing the needs of the assisted trading community. This group, who straddle the extremes of active day trading and long-term investing were previously serviced by stock brokers. Over the last decade they have been polarised into two distinct groups across technology and value divide that either casts them online traders or private clients.

In catering to online traders GT247.com has launched several initiatives that provide investors seeking assistance with the opportunity to stand behind successful traders and learn from their every move. Some of these include:

The Wire: Africa’s first online financial social network;

smart Profiles: an online destination to follow, track and trade the recommendations of recognised market professionals from trade origination through entry and exit; and

www.followhotstoxx.com: an extension of CNBC Africa’s most popular TV show, Hot Stoxx; followers are given the opportunity to track the show’s “Trade of The Day” from entry to exit including portfolio performance and instructional video and educational updates.

Catering to private clients, GT247.com launched GT Private Broking in 2013, established to focus on the delivery of personal investment and trading services that are tailored to meet the unique trading preferences of high touch clients. The division pairs high value clients with the extensive experience of our


trading team and provides personal access to the resources and services available from the rest of the Group. The benefits and synergies created in the outcome are starting to show in the results as clients continue to benefit from achieving above market returns through this personal assisted trading model.

The Group has combined the old world practices of traditional long only asset management, stock broking and proprietary trading to deliver a platform for investment and trading in shares and derivatives, through mobile, telephone and online dealing channels that are risk aware, real time and uniquely tailored to meet our clients’ personal preferences.

Today the Purple Capital Group is capable of servicing the entire universe of investor archetypes from the active day trader through to the passive long-term investor and almost everybody in between; this is an exciting outcome and one that we are confident will deliver even stronger results moving forward.

financial reviewTrading conditions are underpinned by market volatility. This key driver of trading turnover fell to multi decade lows which saw it decline by more than 30% from the levels experienced in our previous reporting period.

Operating conditions were also challenging as the Group made the decision in February 2013 to focus its forward strategy around GT247.com, GT Private Broking (GTPB) and Emperor Asset Management (EAM). It required significant time, effort and resources to sell off or shut down non-core operations whilst rationalising the cost base and reorganising the executive and management teams to best support the core operations.

It is worth highlighting the very encouraging revenue growth posted by our two youngest operating divisions in GTPB and EAM which grew revenue by 54,6% and 206,3% respectively. These two divisions hold much promise for the Group as they further diversify our income and find broader market acceptance for their offering. EAM in particular is a division that is challenging the asset management industry whilst delivering extraordinary results to its clients.

Further evidence of the strength of these results is highlighted in the 93,2% growth in client funds placed with the Group; whilst active client numbers reduced by 6,6%. This was dwarfed by the fact that our average funds per client increased impressively by 106,9% over the period. In the outcome we are now servicing clients of a much higher value. Confidence in the Group continues to grow strongly.

I am confident that shareholders will reflect on this set of results as the strongest posted in several years and share my optimism for the future. It is commendable and I am appreciative for the support and strength of character shown by team GT247.com this year.

Charles savageChief Executive Officer

Trading and asset management revenue by division

r82,4Mn2012: R75,9Mn

2012R’000

2013R’000

GT247.com 62 699 60 457

GT Private Broking 12 163 18 803

Emperor Asset Management 1 036 3 174

Total revenue 75 898 82 434

Client funds by division

r423,4Mn2012: R219,1Mn

2011R’000

2012R’000

2013R’000

GT247.com 59 972 53 894 46 966

GT Private Broking 36 280 51 684 113 376

Emperor Asset Management 39 658 113 541 263 092

Total net asset value 135 910 219 119 423 434

Active clients by division

4 7342012: 5 069

2011 2012 2013

GT247.com 2 815 4 259 3 317

GT Private Broking 266 305 296

Emperor Asset Management 229 505 1 121

Total clients 3 310 5 069 4 734

Group revenue

2012

R’m

2013

R’m

Trading and asset management revenue 75 898 82 434

Growth (%) 8,6

Other income 2 519 487

Total group revenue 78 417 82 921

Growth (%) 5,74


The revenue mix highlights the increasing impact that EAM is having on Group revenue through the symbiotic relationship it shares with GT247.com. This source of income is less influenced by market volatility and is enjoying considerable growth. The strategic alignment of GT247.com with EAM, and in future other alternative asset managers, is proving to be a rewarding opportunity.

Over the last two years GT247.com has demonstrated that it is highly capable of providing all of the execution, risk management, reporting and regulatory capabilities that alternative fund managers require whilst providing a level of client engagement and service that is setting the standard for the industry. In addition, and perhaps uniquely, GT247.com has proven that it has sales and marketing capacity, tools, aptitude and distribution channels to access, educate and successfully raise funds from retail clients.

GT247.com was proud to improve its survey score, being amongst the top stock brokers in South Africa in the annual Business Day Investors Monthly Stockbroker Awards. Most notably GT247.com ranked joint second in the Top CFD Provider category. The result highlighted the fact that we are the only South African provider in the top three and out of this group we ranked first for “client education and resources” and joint first for “transparency”, both important determinants in building a sustainable and trusted CFD industry.

More importantly, the survey established that 86% of our clients rated our level of service as being good or excellent and 82% rated the quality of our trading platforms as either good or excellent. Further to this, areas of improvement were noted and we look forward to addressing these in the year ahead.

As the CFD industry in South Africa gains broader market acceptance and continues to post strong growth over other forms of derivative trading it is reasonable to expect that we will face increasing competition from international peers, local brokers and banks alike. It is therefore important that we ensure that we remain highly competitive when ranked against our peers and make the right strategic choices to best position ourselves to benefit from this industry growth.

In this regard we have considered and agreed our three year forward strategy which will see us unveil some exciting developments in the years ahead and position us well to defend our number one position amongst our South African peers but as important, equip us better to challenge our international peers for overall top spot.

ChIEf ExECUTIvE OffICER’s REPORT continued

revIew

GT247.com, the online trading division of the Group, posted a year on year reduction in revenue of 3,57%; this moderate decline does no justice to the full year achievements and result.

Revenue

r37,6Mnr26,4Mn

30%r25,1Mn r34,0Mn

x35%

volatility index – average

28 1643%

18 1421%

2012 h1 2013 h1 2012 h2 2013 h2

Nominal traded

r113,6Bn r68,5Bn

40%r100,4Bn r76,1Bn

24%

2012 h1 2013 h1 2012 h2 2013 h2

2012 h1 2013 h1 2012 h2 2013 h2

In unpacking the half year comparatives an important trend reversal emerges when the comparative half year revenue periods are analysed.

Both h1 and h2 2013 periods suffered significantly from depressed trading conditions that saw volatility decrease 43% and 21% respectively from their comparative periods in 2012. Despite this, in h2 2013 GT247.com managed to increase revenue markedly by 35% from h2 2012.

Online Emperor Asset Management (EAM)


GT Private Broking (GTPB), the private client division of GT247.com, posted its second consecutive year of 50%+ revenue growth in 2013. The outcome is more impressive when revealing the underlying numbers that are driving the result.

Half year comparatives were up impressively across all scorecard metrics despite the effects of lower levels of market volatility, which saw client activity levels falling significantly per the comparative H1 and H2 reporting periods of 2013. Despite this, H1 and H2 scorecard comparatives against 2012 saw a range of growth that started at an impressive 49%. This growth was primarily driven by increasing client funds rather than an increase in client activity, positioning GTPB for a significant pick up in revenue when this activity returns to historic levels.

The decision to establish a private client division under GT247.com is proving worthwhile. The division focuses on the delivery of high touch personal execution and other trading related services that are tailored to meet the client’s unique trading profile and preferences. Pairing high value clients with the extensive experience and resources available from our GTPB trading team is also yielding higher client profitability; on average our clients posted above market returns (ALSI) of ±25% for the period under review.

The industry standard comparative for measuring growth for a business like GTPB always comes back to nominal (value) traded which posted 100% growth over the reporting period. Considering that the JSE reported growth in value traded over the same period at a modest 5,11% for equities and 2,94% for equity derivatives the only conclusion can be that GTPB is winning market share away from our competitors as it outstrips growth over the industry; this is indeed an encouraging sign.

GTPB is strategically well positioned to continue to win market share and post strong growth as competitor focus seems to have shifted to the delivery of online services over traditional good service and considered advice.

Revenue

r6,1Mn r9,1Mn

x49%r6,1Mn r9,7Mn

x60%

2012 h1 2013 h1 2012 h2 2013 h2

Client funds

2012 h1 2013 h1 2012 h2 2013 h2

r44,9Mn r87,1Mn

x94%r51,7Mn r113,4Mn

x119%

2012 h1 2013 h1 2012 h2 2013 h2

Nominal traded

r3,6Bn r6,9Bn

x93%r4,6Bn r9,4Bn

x103%

volatility index – average

2012 h1 2013 h1 2012 h2 2013 h2

28 1643%

18 1421%

revIew

Business Day - sa Top Broker awarDs 201325 September – 29 October

GT247.com ranked joint 2nd in the Top CFD Provider category.

“An established player in the CFD and spread trading space, GT247.com (formerly Global Trader) also offers trading in equities, warrants, index options and commodity futures. It is a Safex derivatives member. Although not an equities member of the JSE, it allows clients to trade equities through a relationship with Sanlam iTrade. A highly innovative firm, it offers, among other things, an interactive social trading platform, The Wire, and it has developed the MobiTrader mobile spread trading application.

GT247.com is an example of one broker that has implemented a fully-integrated social platform on top of its trading platform, with the idea being to build its community of investors.

2011 2012 2013

Cost 3,5 4,5 3,5Range of instruments 3,5 4 3Trading tools 4 4 4Client education and resources 4 4.5 5Value-added services 2 3 4Transparency 4 4 5Total score 21 24 24,5Top CFD Provider Ranking N/A N/A 2nd

GT247.com’s strength lies in its superior client education focus and innovative trading tools and resources.”

whAT wAs sAId…


ChIEf ExECUTIvE OffICER’s REPORT continued

This was supported by very strong client growth of 122% and

impressive client returns of 31,5% (after costs) over the reporting

period. Whilst revenue relative to the other operating divisions of

the Group remains small at 3,83% (2012: 1,32%) the significance

and role that EAM is expected to play in the future of the Group

should not be underestimated.

The alternative asset management industry (hedge fund industry)

continues to mature as a relevant and meaningful sector of the

asset management landscape. Increasing regulatory support for

this sector looks set to drive the next wave of capital flows and

with it the next phase of growth of the industry. Last year saw the

industry surpass the R40 billion* assets mark, reaching a new all-

time high on the back of strong returns and just over R5 billion

of new capital.

Industry opinion on growth highlighted*:

41,1% expect regulatory change to lead to industry growth;

A further 29,9% were of the opinion that expanding

distribution channels could increase assets;

10,3% indicated that customised solutions for each client

could attract additional capital; and

Other options included increasing capacity in current

offerings (6,5%), launching new hedge fund strategies (6,5%),

managing long-only capital (2,8%), and growth through a

strategic partnership or acquisition (2,8%).

* SA Hedge Fund Survey 2013 compiled by Novare investments.

Emperor Asset Management is well positioned to benefit from

growth in the hedge fund industry with its highly differentiated

and compelling offering:

Disciplined quantitative stock selection strategy that allocates

capital to three investment sectors (momentum, value and

blue chips) across 16-25 of the most liquid JSE shares;

Proprietary market timing, valuation and option protection

models that are deployed to enhance returns and protect

investor capital;

Segregated portfolio structure that allows for:

– Individual tailoring of investment level, utilising derivatives,

that is uniquely matched to meet the client’s own risk and

return profile;

– Stock exclusion and inclusion capabilities allowing for

investor bias and/or stock restrictions based on religious

or other rule sets (e.g. Sharia compliant); and

Complete and real time transparency to your investment

portfolio, strategy and daily returns.

Emperor Asset Management, the alternative asset management division of GT247.com, posted very encouraging revenue growth of 206,28% in 2013. Assets under management (AUM) in our Robert falcon scott fund (Rfs fund) grew by 174% and 132% over the respective h1 and h2 periods from 2012 to 2013.

Revenue

r0,25Mnr1,0Mn

x300%r0,8Mn r2,1Mn

x160%

Client funds

r65,1Mn r178,3Mn

x174%r113,5Mn r263,1Mn

x132%

2012 h1 2013 h1 2012 h2 2013 h2

2012 h1 2013 h1 2012 h2 2013 h2

Performance Management

Portfolio – sector weights

Food and Health 16,93%

Technology, Media and

Telecommunications 16,53%

Financial 15,15%

Consumer 14,31%

Industrial 13,41%

Resources 10,94%

Services 9,53%

Platinum 2,46%

Put Option 0,74%

60 month risk vs return

Re

turn

s p

er

ann

um

Downside deviation per annum

30%

25%

20%

10%

15%

5%

0%5% 10% 15%

SteFIALBI

SWIX FTSE/JSE Top 40

revIew

Robert Falcon Scott


Looking forward to the year ahead these are EAM’s key strategic initiatives that will further enhance and differentiate our offering.

h1 2014 Launch the Robert Falcon Scott (RFS) fund as a unit trust. The

investment strategy and resultant stock selection continues to

deliver strong Alpha and demand for a long-only, Regulation

28 compliant version of the benchmark RFS fund is high.

Structure the operations of EAM to best meet the anticipated

regulatory changes in order to benefit from expected

institutional capital flows.

Roll out our Independent Financial Adviser partnership and

education programme to further increase our distribution

network, awareness and understanding of EAM and its funds.

h2 2014 Launch a version of the RFS Fund focused on an investment

universe comprising stocks from the S&P500. Back testing

of the quantitative strategy deployed on this stock universe

has yielded very positive results and client demand for an

offshore version of the benchmark fund strategy is high.

Implement new back office systems capable of delivering

higher levels of client control, differentiation and real time

access.

I’m sure that you agree that Emperor Asset Management is decidedly different from any other asset manager and nowhere is this more apparent than in the high goals we set for ourselves:

To add a zero to your investment every 10 years. To achieve

this we need to achieve an annual return rate of 25,9% (since

inception in October 2004 we have achieved an annual

return of 24,7% and a total return of 640%)**;

To never record a negative return year. (Over the last eight

completed calendar years we have only recorded a single

negative annual return of -14,5% (2008), however since then

we have worked tirelessly to implement new models that we

are confident will prepare us better the next time); and

To outperform the benchmark index (FTSE/JSE Top 40) by

a factor of 2x over any given investment period. (We have

managed to achieve this 62,5% of the time or five out of the

eight completed calendar years).

Our goals as an asset manager are bold but they are delivered

off a strong and improving track record that is highly disciplined

in its execution, objectively back tested and operationally robust

to ensure that we are capable of delivering positively against our

client expectations.

fund performance as at 31 October 2013**

Total return Rfs fund fTsE/JsE Top 40

This month 7,3% 3.1%

Last 12 months 39,6% 23,2%

Last three years 123,6% 50,3%

Last five years 250,7% 113,1%

Since inception 640,0% 277,2%

Annualised returns to 31 October 2013**

Total return Rfs fund fTsE/JsE Top 40

Year-to-date 36,1% 20,5%

Last 12 months 39,6% 23,2%

Last three years 30,8% 14,5%

Last five years 28,5% 16,3%

Since inception 24,7% 15,7%

** Returns quoted are to 31 October 2013 and are net of all fees.

fund performance

Robert Falcon Scott

FTSE/JSE Top 40

640,0%

277,2%

700%

600%

500%

300%

400%

200%

100%

0%Oct 2004 Oct 2013


chIef fInancIal offIcer’s rePort

this distribution channel is introducing a lower proportion of the new clients.

Research costs mainly comprise third party generated trading tips and analysis that is provided to our clients in order to increase their trading activity. The expected results have not been realised from this initiative which has resulted in the majority of this expense being cut towards the end of the financial year.

Operating expenses

2013

R’000

2012

R’000

%

change

Employment costs 33 009 34 330 (3,8)

IT costs 10 571 9 151 15,5Marketing 6 575 3 352 96,1Office costs 4 797 6 297 (23,8)Other 7 811 3 047 156,4Total 62 763 56 177 11,7Normalised expenses 57 363 56 177 2,1

2013

R’000

2012

R’000

Group headcount

Core operations/head office 49 66Treasury – 8Gaming – 15Total 49 89

Employment costs

The rationalisation of the Group’s core operations and head office was completed on 30 April 2013. Through attrition and the rationalisation process, the headcount has been reduced from 66 at 31 August 2012 to 49 at 31 August 2013. Retrenchment costs of R1,7 million are included in employment costs in the current year.

IT costs

IT costs primarily include hosting and connectivity fees, various datafeed and licensing costs. The 15,5% increase in the current year included R0,8 million of non-recurring costs incurred in upgrading system infrastructure and development of our mobile trading platform. Although we do not expect significant savings in this area we have implemented a number of initiatives towards the end of the financial year that could result in some savings.

Marketing

The marketing spend during the 2012 year was low due to a larger share of the Group marketing budget being directed at the gaming business during 2012. The marketing spend incurred during the current year, amounting to 7,9% of revenue, is at our target level.

Office costs

The Group relocated to new offices during the current year resulting in a significant reduction in the monthly rental expense. The once-off relocation costs that have been expensed in the current year amount to R0,5 million.

Other operating expenses

Other operating expenses include professional fees, travel and entertainment expenses and compliance fees.

This section provides a detailed analysis of the financial results of the Group for the year ended 31 August 2013.

summarised group statement of income2013

R’000

2012

R’000

%

change

Revenue 82 921 78 417 5,7Trading expenses (7 109) (9 457)Net trading revenue 75 812 68 960 9,9 Operating expenses (62 763) (56 177) 11,7 Other income 259 502 EBITDA* 13 308 13 285 (0,2)Net interest expense (716) (971)Depreciation and

amortisation (1 797) (1 617)Profit from core operations 10 795 10 697 0,9 Fair value adjustments (15 324) 3 356 GTE distribution – 5 832 (Loss)/profit before tax (4 529) 19 885 Current and deferred tax 2 391 (2 222)Profit for the period from

continued operations (2 138) 17 663 Discontinued operationsLoss from discontinued

operations (17 310) (14 449)Profit on sale of

discontinued operations 21 713 –Profit for the period 2 265 3 214 Basic earnings per share

(cents) 0,28 0,48 Headline (loss)/earnings per

share (cents) (2,25) 0,48

* Earnings before interest, tax, depreciation and amortisation of core trading

and asset management businesses.

RevenueAn overview of revenue has been provided in the preceding sections of this report.

Trading expenses

2013

R’000

2012

R’000

%

change

IA broker commissions 3 324 4 163 (20,2)Sales commissions 2 477 3 777 (34,4)Research costs 1 308 1 517 (13,8)Total 7 109 9 457 (24,8)% trading revenue 8,6 12,1

Trading expenses comprise introducing agent (IA) commissions, sales commissions and third party research costs.

IAs are paid a percentage of all revenue generated by the Company from clients introduced by the IA. The decrease in these commissions during the current year is indicative of the lower levels of trading activity during the year by the IA’s clients and that


Other operating expenses reflect the increased levels of legal, audit and compliance fees incurred in relation to our asset management business during the current year, however, once off professional fees of R2,4 million were incurred during the rationalisation process and the disposal of the Treasury and Gaming businesses in the current year.

Normalised expenses The operating expenses for 2013 excluding the non-recurring items referred to above would amount to R57,4 million, being an increase of 2,1% compared to 2012.

EBITDA EBITDA from core operations decreased by 0,2% to R13,3 million for the year ended 31 August 2013, however, normalised EBITDA (excluding the once off restructuring costs of R4,6 million) amounts to R17,9 million, 34,5% higher than the prior year.

Net interest expenseThe decrease in the net interest expense was due to a decrease in the Company’s medium-term loan from R9,3 million to R7,5 million at 31 August 2013.

Depreciation and amortisationDepreciation and amortisation increased by 11,1% during the current year following spend in respect of the office move and software development.

fair value adjustmentsNet fair value adjustments for the current year, totalling R15,3 million included an R18,7 million write down of Purple Capital’s investment in an empowerment vehicle holding a stake in Real People Investment Holdings Proprietary Limited, in line with its publicly listed peers. The long-term valuation prospects remain good. This write down was partially off-set by an upward revaluation of Purple Capital’s investment in the Cipla Medpro Limited empowerment structure.

Current and deferred tax

2013Current

R’000

deferred

R’000

Total

R’000

Purple Capital – 4 654 4 654

First World Trader (3 079) 816 (2 263)Total (3 079) 5 470 2 391

The tax credit of R2,4 million for the year ended 31 August 2013 mainly comprises current tax of R3,1 million paid by First World Trader Proprietary Limited in respect of current year profits and the deferred tax effects of the fair value write downs and losses incurred in the Purple Capital entity.

Discontinued operationsThe Group sold Purple Capital Treasury and Powerbet Gaming during the year. The results of these operations have been included in the profit for the year from discontinued operations. The profits realised on the sale of Purple Capital Treasury and Powerbet Gaming of R0,3 million and R21,4 million respectively have similarly been included in the profit for the year from discontinued operations. The sale proceeds of R30 million in respect of the sale of Powerbet Gaming has been shown under trade and other receivables.

Profit for the periodBasic earnings per share for the year ended 31 August 2013 has decreased from 0,48 cents to 0,28 cents per share, compared to the prior period. The profit realised on the disposal of the discontinued operations of R21,7 million is required to be excluded from the calculation of headline earnings resulting in headline earnings per share decreasing from a profit of 0,48 cents to a loss of 2,25 cents.

group statement of financial positionNon-current assetsThe fair value write down in Real People Investment Holdings along with the disposal of Powerbet Gaming and Purple Capital Treasury has resulted in a decrease in non-current assets of R19,2 million for the year ended 31 August 2013.

Net current assetsCurrent assets at 31 August 2013 exceed current liabilities by R8,5 million.

2013

R’000

2012

R’000

Current assets 156 934 68 001

Current liabilities (148 397) (79 387)Net current assets/(liabilities) 8 537 (11 386)

Non-current liabilitiesThe Group has no long-term borrowings.

Equity attributable to ownersThe equity attributable to owners increased by 0,9%.

Gary van DykChief Financial Officer

2013 2012Treasury

R’000

Powerbet

R’000

Total

R’000

Treasury

R’000

Powerbet

R’000

Total

R’000

Discontinued operations

Operating loss after tax (3 231) (14 079) (17 310) (5 681) (8 768) (14 449)Profit on disposal 321 21 392 21 713 – – –(Loss)/profit for the year (2 910) 7 313 4 403 (5 681) (8 768) (14 449)


The Group recognises that the shareholders own the business

and that the board is required to act in the best interests of

the Company. The board subscribes to the highest level of

professionalism and integrity in conducting its business and in

dealing with all its stakeholders. In adhering to its code of ethics,

the board will be guided by the following broad principles:

Businesses should operate and compete in accordance with

the principles of free enterprise;

Free enterprise will be constrained by the observance

of relevant legislation and generally accepted principles

regarding ethical behaviour in business;

Ethical behaviour is predicated on the concept of utmost

good faith and characterised by integrity, reliability and a

commitment to avoid harm;

Business activities will benefit all participants through a fair

exchange of value or satisfaction of needs; and

Equivalent standards of ethical behaviour are expected

from individuals and companies with whom business is

conducted.

The Group has formed a social and ethics committee in line with

the requirements of the Companies Act. Craig Carter (Chairman),

Thembeka Gwagwa and Gary van Dyk are its members. A formal

charter has been adopted that governs the objective of the

committee and how its business shall be conducted.

The board of directorsComposition of the board

The board currently consists of three executive and four non-

executive directors. It is the board’s intention to always have

more non-executive than executive directors on the board. The

board is satisfied that it has the requisite number of directors with

the skills, knowledge and resources to conduct the business of

the Group.

Role and function of the board

The board is responsible for the effective management and

control of the Group and participates in the determination of

the strategic direction and policy of the Group, discussions

regarding transactions and disposals, approval of major capital

expenditure, diverse financial and administrative activities and

any other matters that may materially impact on the business

of the Group. Day-to-day management vests in the executive

teams of the businesses themselves. Management will supply

the board in a timely manner with information in a form and

of a quality appropriate to enable it to discharge its duties. The

directors have unrestricted access to all Group information,

records, documents and property, which they may require for

the fulfilment of their duties. Directors will furthermore have the

ability to delegate certain functions, either internally or externally,

in order to assist them in the performance of their duties and

the decision-making process. The Chairman will have the power

to review the content and implementation of such delegated

functions and will report on this to the board.

Independence of the board

Recognising that the Executive Chairman is not an independent

non-executive director, it is the intention of the board to maintain

a majority of non-executive directors to provide independent and

objective input into the decision-making process. The majority

of the non-executive directors are independent.

All directors have access to the services of the Group Secretary

and will be entitled to seek independent professional advice

regarding the affairs of the Group, at the Group’s expense, with

the prior approval of a majority of the non-executive directors.

Appointment and re-election of the board

Directors are subject to retirement by rotation and re-election

by shareholders in accordance with the Memorandum of

Incorporation. The identification of suitable candidates to fill

vacancies on the board and to re-appoint directors on retirement

by rotation is conducted by the full board based on the suitability

of available candidates and the requirements of the Group.

Remuneration committee

The board of directors has established a remuneration

committee which will make recommendations to the board

within agreed terms of reference, on the Group’s framework

of executive remuneration and its costs. The remuneration

committee will ensure that levels of remuneration are sufficient

to attract and retain directors and executives needed to run the

Group successfully. The remuneration committee will meet as

required and comprises Ronnie Lubner and Mark Barnes.

The remuneration committee has developed a performance-

orientated remuneration philosophy which fairly rewards

executives and employees for their respective contributions

to achieving the Group’s strategic, financial and operational

objectives. The remuneration structures are to encourage

sustainable, long-term wealth creation. The following factors

regarding the remuneration structures are highlighted:

The remuneration philosophy is supportive of the Group’s

strategy;

The cost of employment is managed while, at the same time,

employees are rewarded in order to retain and motivate

talented, skilled and high-calibre executives and employees;

The Group promotes a performance-based culture; and

The Group strives to align executive rewards with the

interests of shareholders.

The remuneration committee acknowledges the importance

of motivating individual and team performances and therefore

applies the remuneration policy equitably, fairly and consistently

in relation to job responsibilities, the markets in which the Group

operates and personal performance.

The Group rewards executive directors and employees as

follows:

Market-related, fair annual packages (base salary and

benefits), which are competitive owing to the portability of

skills;

ethIcal leadershIP and corPorate cItIzenshIP


Market information is sourced from industry and executive

remuneration surveys to benchmark executive remuneration

in comparable positions;

Annual performance bonus related to specific Company and

personal objectives; and

Participation in the employee share option scheme.

For non-executive directors’ fees, the remuneration committee

takes cognisance of market norms and practices as well as the

additional responsibilities placed on board members by new

legislation and corporate governance rules. Non-executive

director remuneration is fee-based and not linked to the share

price of Purple Capital. Purple Capital non-executive directors

do not receive bonuses or share options to ensure actual and

perceived independence.

Group secretary

The Group Secretary acts in a support capacity to the directors

and Chairman and is suitably qualified, competent and

experienced to provide the board with guidance and advice

regarding directors’ responsibilities, duties and powers and to

ensure that the board is aware of all the legislation relevant to

or affecting the affairs of the Group. The Group Secretary is

required to ensure that the Group complies with all applicable

legislation regarding its affairs including the necessary recording

of meetings of the board or shareholders.

Audit committee

The board of directors has established an audit committee

whose primary objective is to provide the board with additional

assurance regarding the efficiency and reliability of the financial

information used by the directors, and assurance that the

regulatory structures are maintained in compliance with the

applicable legislative frameworks. The audit committee will meet

at least twice a year and comprises Craig Carter, Thembeka

Gwagwa and Dennis Alter. The Chairman, Financial Director

and representatives of external audit attend audit committee

meetings by invitation.

Other functions of the audit committee include:

nomination of the external auditor for appointment;

approval of the terms and remuneration of the external

auditor;

approval of non-audit services by the external auditor;

communication with shareholders regarding the external

auditors;

overseeing integrated reporting; and

satisfying itself that the finance function is appropriately

staffed.

As required by the JSE, the Company has a Financial Director.

The position is currently held by Gary van Dyk, who is an

executive director and is deemed competent by the committee.

The committee is satisfied that the external audit function

and designated auditor are accredited and have acted with

unimpaired independence and free from any scope restriction.

Details of fees paid are disclosed on page 41 of the financial

statements together with the fees paid for non-audit services

provided.

governance of riskThe Group has formed a risk management committee that is

responsible for the governance of risk and to set levels of risk

tolerance and risk appetite. The committee comprises Mark

Barnes (Chairman), Charles Savage (CEO), Gary van Dyk (Chief

Financial and Operations Officer) and Andrew Kinsey (Head of

Risk) and meets on an ad hoc basis (four meetings during 2013)

when the risk position of the various companies warrants it.

This committee has as its responsibility to:

design, implement and monitor the risk management plan;

ensure risk is assessed on a continual basis;

ensure that there are appropriate risk responses implemented;

and

ensure that there are processes in place enabling complete,

timely, relevant, accurate and accessible risk disclosure.

The board is of the view that the risk management process is

effective in managing the risks that the business is faced with and

in responding to unusual or abnormal risks.

governance of ITIT forms an integral part of most of the business units in the

Group, most notably Global Trader, Purple Capital Treasury and

Voltbet. IT governance, therefore, forms an integral part of the

Company’s risk management to ensure that the systems are

able to support our clients’ needs and our own internal control

systems. While the board is ultimately responsible for the

governance of IT, this has been delegated to the Group Chief

Information Officer, who is responsible for the implementation of

an IT governance framework and for monitoring and evaluating

significant IT expenditure.

Compliance with relevant laws, rules, codes and standardsThe board is responsible for ensuring the Group complies with

all applicable laws that affect the different business units. This is

achieved through effective delegation to management and the

Group Compliance function that monitors the Group’s compliance

with the relevant rules and laws. During the year a regulatory

committee was formed to monitor the Group’s compliance

with the acts relevant to its various businesses, most importantly

FICA and FAIS. The committee comprises Charles Savage (CEO)

and Gary van Dyk (Chief Financial and Operations Officer) and

meetings are attended by the Group Compliance Officer.

governing stakeholder relationshipsThe board is responsible for ensuring that all the Group’s

stakeholders are dealt with in an equitable manner and that there


EThICAL LEADERshIP AND CORPORATE CITIZENshIP continued

is transparent and effective communication with them. The

board has identified the important stakeholders in the Group and

strives to achieve a balance between their various expectations.

There were no requests for information lodged with the

Company in terms of the Promotion of Access to Information

Act, No 2 of 2000 that were denied during the year.

The main stakeholders in Purple Capital and the primary channels

of communication with each of them, are as follows:

Communication channels

Employees: HR function, performance management systems,

management structures, team and staff meetings.

Customers: Website, emails, seminars, training, social media and

sales team.

shareholders: Integrated report, annual general meeting, one-

on-one meetings, circulars and announcements.

Partners: IA brokers programme, rebate reporting, meetings and

reporting.

Regulators: Submission of annual reports and returns, audits

and compliance with the rules and regulations of the individual

regulatory bodies (JSE, FSB, WCGB).

Media: Interviews, providing content to TV shows and magazines.

Integrated reportingThis is the third year that an integrated report has been produced

by the Group. The board was responsible for ensuring that the

report conveyed the appropriate level of detail in relation to

the Group’s financial and sustainability performance. The table

below summarises the Group’s compliance with King III and

explains why and where it does not comply.

Apply

Partially

apply Explain

Ethical leadership and corporate citizenship

Board provides effective

leadership based on an ethical

foundation

^

Responsible corporate citizen ^

Appreciate that strategy, risk,

performance and sustainability

are inseparable

^

Effective management of the

Company’s ethics

^

The board of directors

Leads the Group ethically ^

Is the focal point for governance ^

Directs strategy for the Group ^

Majority of independent non-

executive directors

^

Has a formal charter ^

One-third of non-executive

directors rotate each year

^

Chairman of the board is an

independent non-executive

director

^1

Apply

Partially

apply Explain

The board of directors continued

No non-executive directors

serving for more than nine years

^

Directors are appointed through

a formal process

^2

Chief Executive Officer and

Financial Director

^

Adequate skills, knowledge and

resources to manage the Group

^

Meets at least four times a year ^3

Directors act in the best interests

of the Company

^

Suitable, qualified and

experienced Company Secretary

^

Regular performance evaluations

of directors

^4

Directors and executives are fairly

remunerated

^

Remuneration of directors is

disclosed

^

Appropriate committees have

been appointed

^5

Agreed governance structure

between the holding and

subsidiary companies

^

Audit committee

Effective and independent ^

Suitably skilled ^

Consists of three independent

non-executive directors

^

Meets at least twice a year ^

Meets with external auditors

once a year without

management

^

Oversees external audit process ^

Ensures finance functions have

sufficient skills and resources

^

Internal audit

Effective internal audit function ^6

governance of risk

Setting of risk tolerance ^

Risk committee with at least

three members

^

Risk policy, processes and

procedures

^

Risk assessments are performed

on a continual basis

^

Management considers and

implements appropriate risk

responses

^

Sufficient risk disclosure to

stakeholders

^

governance of IT

Board is responsible for IT

governance

^


Apply

Partially

apply Explain

governance of IT continued

Monitors and evaluates

significant IT expenditure

^

Management is responsible for

the IT governance framework

^

IT assets are managed effectively ^

IT is aligned to performance and

sustainability objectives

^

Compliance with laws, codes, rules and standards

The board ensures the Company

complies with the relevant laws

^

The board and directors have a

working understanding of the

effect the rules and laws have on

the Company

^

Compliance risk forms

an integrated part of risk

management

^

Compliance framework

delegated to management

^

governing stakeholder relationships

Appreciation that stakeholder

perceptions affect the Group’s

reputation

^

Management deals proactively

with stakeholder relationships

^

Appropriate balance between

stakeholder groupings

^

Board treats different

stakeholders equitably

^

Transparent and effective

communication with

stakeholders

^

Integrated reporting and disclosure

Ensure integrity of Group’s

integrated report

^

Sustainability reporting and

disclosure integrated with

financial reporting

^

Explanation1. Recognising that the Executive Chairman is not an

independent non-executive director, it is the intention of the

board to maintain a majority of non-executive directors to

provide independent and objective input into the decision-

making process. The majority of the non-executive directors

are independent. Ronnie Lubner has been appointed as the

lead non-executive director. The Company has an Executive

Chairman as Mark Barnes was the founder of the Group and

is still involved in day-to-day operations. When the Group

requires it, and can attract a suitably qualified candidate, a

non-executive Chairman will be appointed.

2. While there is no formal process for the appointment of

directors, all current directors would be consulted before a

new director is appointed to the board. Mike Wilson resigned

as financial director on 15 April 2013 and Gary van Dyk was

appointed to the board as the Chief Financial and Operations

Officer effective 15 April 2013.

3. The board met formally twice during the 2013 financial year

mainly due to the fact that getting all the non-executive

directors together is logistically challenging. Informal

discussions are held with the non-executive directors on an

ongoing basis.

4. Due to the small size of the Group and directors, no formal

evaluation process has been implemented yet.

5. Audit, remuneration, risk and regulation committees have

been appointed. A nominations committee has not been

formed due to the small size of the board and the fact that it

has not changed in recent history.

6. Due to the size and nature of the Group there is no internal

audit function. This will be re-assessed as the Group grows

and an internal audit function becomes necessary.

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me

6

2

Co

mp

any

stat

em

en

t o

f c

ash

flo

ws

6

2

Co

mp

any

stat

em

en

t o

f c

han

ge

s in

eq

uit

y

63

No

tes

to t

he

Co

mp

any

fin

anc

ial s

tate

me

nts

6

4

Th

ese

an

nu

al fi

nan

cia

l sta

tem

en

ts h

ave b

een

au

dite

d in

co

mp

lian

ce w

ith t

he

app

licab

le r

eq

uirem

en

ts o

f th

e C

om

pan

ies

Act

No

71

of

20

08

.

Th

e fi

nan

cia

l sta

tem

en

ts h

ave b

een

su

perv

ised

by

the C

hie

f Fi

nan

cia

l an

d

Op

era

ting

Offi

cer, G

ary

van

Dyk

CA

(SA

).



DIR

EC

TO

RS

’ RE

SP

ON

SIB

ILIT

Y F

OR

FI

NA

NC

IAL

RE

PO

RT

ING

Th

e d

irecto

rs a

re r

esp

on

sib

le f

or

the p

rep

arat

ion

an

d f

air

pre

sen

tatio

n o

f th

e G

rou

p a

nd

Co

mp

any

ann

ual

fin

ancia

l sta

tem

en

ts o

f Pu

rple

Cap

ital L

imite

d, c

om

pri

sin

g th

e s

tate

men

t of fi

nan

cia

l po

sitio

n

at 3

1 A

ug

ust

20

13,

the s

tate

men

t o

f co

mp

reh

en

sive

in

co

me,

stat

em

en

t o

f o

ther

co

mp

reh

en

sive

inco

me a

nd

th

e s

tate

men

t o

f cas

h fl

ow

s fo

r th

e y

ear

th

en

en

ded

, an

d t

he n

ote

s to

th

e fi

nan

cia

l

stat

em

en

ts,

wh

ich

in

clu

de a

su

mm

ary

of

sig

nifi

can

t ac

co

un

ting

po

licie

s an

d o

ther

exp

lan

ato

ry

no

tes,

an

d t

he d

irecto

rs’

rep

ort

, in

co

nfo

rmity

with

In

tern

atio

nal

Fin

ancia

l R

ep

ort

ing

Sta

nd

ard

s,

the S

AIC

A F

inan

cia

l R

ep

ort

ing

Gu

ides

as i

ssu

ed

by

the A

cco

un

ting

Pra

ctic

es

Co

mm

ittee a

nd

Fin

ancia

l R

ep

ort

ing

Pro

no

un

cem

en

ts a

s is

sued

by

the F

inan

cia

l R

ep

ort

ing

Sta

nd

ard

s C

ou

ncil,

the r

eq

uirem

en

ts o

f th

e C

om

pan

ies

Act,

No

71

of

20

08

an

d t

he L

istin

gs

Req

uirem

en

ts o

f th

e

JSE

Lim

ited

.

Th

e d

irecto

rs’

resp

on

sib

ility

in

clu

des:

desi

gn

ing

, im

ple

men

ting

an

d m

ain

tain

ing

in

tern

al c

on

tro

ls

rele

van

t to

th

e p

rep

arat

ion

an

d fa

ir p

rese

nta

tion

o

f th

ese

fin

ancia

l st

atem

en

ts th

at ar

e fr

ee

fro

m m

ateri

al m

isst

atem

en

t, w

heth

er

du

e t

o f

rau

d o

r err

or;

sele

ctin

g a

nd

ap

ply

ing

ap

pro

pri

ate

acco

un

ting

po

licie

s; a

nd

mak

ing

acco

un

ting

est

imat

es

that

are

reas

on

able

in t

he c

ircu

mst

ances.

Th

e

directo

rs’

resp

on

sib

ility

al

so

inclu

des

mai

nta

inin

g

adeq

uat

e

acco

un

ting

re

co

rds

and

an

eff

ectiv

e s

yste

m o

f ri

sk m

anag

em

en

t. T

he d

irecto

rs h

ave m

ade a

n a

ssess

men

t o

f th

e G

rou

p’s

an

d

Co

mp

any’

s ab

ility

to

co

ntin

ue a

s a

go

ing

co

ncern

an

d h

ave n

o r

eas

on

to

belie

ve t

he b

usi

ness

will

no

t b

e a

go

ing

co

ncern

in

th

e y

ear

ah

ead

. T

he e

xtern

al a

ud

itors

are

en

gag

ed

to

exp

ress

an

ind

ep

en

den

t o

pin

ion

on

th

e a

nn

ual

fin

ancia

l sta

tem

en

ts.

Ap

pro

val o

f G

rou

p a

nd

Co

mp

any

ann

ual

fin

ancia

l sta

tem

en

ts s

et

ou

t o

n p

ages

24 t

o 7

1 o

f P

urp

le

Cap

ital

Lim

ited

, as

id

en

tified

in

th

e fi

rst

par

agra

ph

, w

ere

ap

pro

ved

by

the b

oar

d o

f d

irecto

rs o

n

8 N

ove

mb

er

20

13 a

nd

are

sig

ned

on

th

eir

beh

alf

by:

Mar

k B

arn

es

Gar

y va

n D

ykC

hai

rman

C

hie

f Fi

nan

cia

l an

d O

pera

tion

s O

fficer

GR

OU

P S

EC

RE

TA

RY

’S R

EP

OR

T

To t

he

sh

are

ho

lde

rs o

f P

urp

le C

apit

al L

imit

ed

I h

ave c

on

du

cte

d t

he d

utie

s o

f C

om

pan

y Se

cre

tary

fo

r P

urp

le C

apita

l Lim

ited

an

d it

s su

bsi

dia

ries.

Th

e s

ecre

tari

al m

atte

rs a

re t

he r

esp

on

sib

ility

of

the G

rou

p’s

directo

rs. M

y re

spo

nsi

bili

ty is

pro

vid

ing

the d

irecto

rs c

olle

ctiv

ely

an

d i

nd

ivid

ual

ly w

ith g

uid

ance a

s to

th

eir

du

ties,

resp

on

sib

ilitie

s an

d

po

wers

.

op

inio

nIn

my

op

inio

n, t

he G

rou

p h

as lo

dg

ed

with

th

e R

eg

istr

ar a

ll su

ch

retu

rns

and

no

tices

as a

re r

eq

uired

of

a p

ub

lic c

om

pan

y in

term

s o

f th

e C

om

pan

ies

Act

and

th

at a

ll th

ose

retu

rns

are t

rue, c

orr

ect

and

up

to

dat

e.

Pe

ter

Bar

rab

leR

eg

iste

red

Gro

up

Secre

tary

Joh

ann

esb

urg

8 N

ove

mb

er

20

13


DIR

EC

TO

RS

’ RE

PO

RT

for

the y

ear

en

ded

31

Au

gu

st 2

013

Th

e d

irecto

rs s

ub

mit

their

an

nu

al r

ep

ort

on

th

e a

ctiv

ities

of

Pu

rple

Cap

ital L

imite

d (

the C

om

pan

y)

and

its

sub

sid

iari

es

(Pu

rple

Cap

ital o

r th

e G

rou

p)

for

the y

ear

en

ded

31

Au

gu

st 2

013

.

Bu

sin

ess

op

era

tio

ns

Pu

rple

Cap

ital

Lim

ited

, re

gis

tere

d a

nd

in

co

rpo

rate

d i

n t

he R

ep

ub

lic o

f So

uth

Afr

ica,

is

a fin

ancia

l

serv

ices

co

mp

any

liste

d o

n t

he “Fi

nan

cia

ls –

Gen

era

l Fin

ancia

l” se

cto

r o

f th

e J

SE. I

t h

as s

ub

sid

iari

es

that

op

era

te in

deri

vativ

es

trad

ing

an

d a

sset

man

agem

en

t.

Fin

anci

al r

evi

ew

Th

e G

rou

p r

eco

rded

an

att

rib

uta

ble

pro

fit o

f R

2,3

mill

ion

(2

012

: p

rofit

of

R3,

9 m

illio

n)

for

the 2

013

finan

cia

l year

. Sh

areh

old

ers

’ fu

nd

s h

ave in

cre

ased

fro

m R

273

,6 m

illio

n in

20

12 t

o R

276

,0 m

illio

n in

20

13. N

ote

6 s

ho

ws

net

pro

fit a

fter

tax

by

op

era

ting

seg

men

t.

sh

are

cap

ital

Th

e t

ota

l au

tho

rise

d s

har

e c

apita

l is

1 2

00

00

0 0

00

ord

inar

y sh

ares

of

R0

,01

eac

h a

nd

th

e t

ota

l

nu

mb

er

of i

ssu

ed

ord

inar

y sh

ares

in is

sue n

et o

f tre

asu

ry s

har

es

is 8

15 5

75 7

23

(20

12: 8

20

65

5 0

22

).

At

31

Au

gu

st t

he d

irecto

rs’ i

nte

rest

s in

th

e is

sued

sh

are c

apita

l of

the C

om

pan

y w

ere

as

follo

ws:

dis

po

sals

Th

e C

om

pan

y d

isp

ose

d o

f P

urp

le C

apita

l Tr

eas

ury

Pro

pri

eta

ry L

imite

d a

nd

Po

werb

et

Gam

ing

Pro

pri

eta

ry L

imite

d d

uri

ng

th

e y

ear

.

Eve

nts

su

bse

qu

en

t to

ye

ar-e

nd

Th

e d

irecto

rs a

re n

ot

awar

e o

f an

y o

ther

mat

ter

or

circu

mst

ance a

risi

ng

sin

ce t

he e

nd

of

the y

ear

up

to

th

e d

ate o

f th

is r

ep

ort

, no

t o

therw

ise d

eal

t w

ith in

th

is r

ep

ort

. Refe

r to

no

te 3

3 o

f th

e fi

nan

cia

l

stat

em

en

ts.

dir

ect

ors

Th

e d

irecto

rs o

f th

e G

rou

p d

urin

g th

e fi

nan

cia

l year

an

d u

p to

the d

ate o

f th

is rep

ort

were

as

follo

ws:

M

ark

Bar

nes

(Ch

airm

an)

C

har

les

Sava

ge (

CE

O)

M

ike W

ilso

n (

CFO

): R

esi

gn

ed

15

Ap

ril 2

013

Gar

y va

n D

yk (C

FOO

): A

pp

oin

ted

15

Ap

ril 2

013

D

en

nis

Alter

(Am

eri

can

)*#

C

raig

Car

ter*

T

hem

beka

Gw

agw

a*#

R

on

nie

Lu

bn

er

(Bri

tish

)*

* N

on

-exe

cu

tive

# In

dep

en

den

t

20

132

012

Ben

efici

aln

on

-ben

efici

alB

en

efi

cial

No

n-b

en

efi

cial

dir

ect

ind

irec

t d

irec

t in

dir

ect

Dir

ect

In

dir

ect

D

ire

ct

Ind

ire

ct

Mar

k B

arn

es

61

072

52

313

0 1

89

58

8

–

–

51

44

7 6

56

13

0 1

89

58

8

–

–

Cra

ig C

arte

r1

93

2 3

66

–

–

–

1

93

2 3

66

–

–

–

Ro

nn

ie L

ub

ner

–

–

–

23

3 5

52

90

8–

–

–

2

33

55

2 9

08

Den

nis

Alter

7 2

00

00

0

–

–

–

7 2

00

00

0

–

–

–

Ch

arle

s Sa

vag

e5

1 0

0 0

1 1

–

–

4 5

40

00

010

0 0

10

–

–

4 5

40

00

0

Gar

y va

n D

yk5

00

0 0

00

–

–

–

–

–

–

–

80

30

4 9

00

13

0 1

89

58

8

–

23

8 0

92

90

86

0 6

80

03

2

130

18

9 5

88

–

2

38

09

2 9

08

At

the d

ate o

f th

is r

ep

ort

, no

ne o

f th

e d

irecto

rs o

f th

e G

rou

p h

ad d

isp

ose

d o

f an

y o

f th

e s

har

es

held

by

them

as

at 3

1 A

ug

ust

20

13.

Du

rin

g t

he y

ear

, Mar

k B

arn

es

pu

rch

ased

9 6

24 8

67

shar

es,

Ch

arle

s Sa

vag

e p

urc

has

ed

5 0

00

00

0 s

har

es

and

Gar

y va

n D

yk p

urc

has

ed

5 0

00

00

0 s

har

es.


DIR

EC

TO

RS

’ RE

PO

RT

co

ntin

ued

for

the y

ear

en

ded

31

Au

gu

st 2

013

sh

are

ince

nti

ve s

che

me

At 3

1 A

ug

ust

20

13 th

e P

urp

le C

apita

l Lim

ited

Em

plo

yee S

har

e O

ptio

n S

chem

e h

ad is

sued

76

,3 m

illio

n

(20

12: 12

5,1

mill

ion

) op

tion

s in

to

tal t

o t

he d

irect

ors

an

d s

taff

of

Pu

rple

Cap

ital.

Deta

ils o

f th

e o

ptio

ns

in is

sue a

re d

iscl

ose

d in

no

te 2

4 t

o t

he fi

nan

cial

sta

tem

en

ts.

Bo

rro

win

gs

In t

erm

s o

f th

e M

em

ora

nd

um

of

Inco

rpo

ratio

n o

f th

e C

om

pan

y, t

he d

irecto

rs m

ay e

xerc

ise a

ll

po

wers

of

the C

om

pan

y to

bo

rro

w m

on

ey,

as

they

co

nsi

der

app

rop

riat

e.

sh

are

ho

lde

r sp

read

Deta

ils o

f th

e C

om

pan

y’s

shar

eh

old

er

spre

ad a

re r

eco

rded

in n

ote

37.

Cap

ital

dis

trib

uti

on

ou

t o

f sh

are

pre

miu

m in

lie

u o

f a

div

ide

nd

T

he d

irecto

rs d

ecla

red

a c

apita

l d

istr

ibu

tion

ou

t o

f sh

are p

rem

ium

, b

y w

ay o

f a

red

uctio

n o

f

co

ntr

ibu

ted

cap

ital

of

2 (

two

) cen

ts p

er

shar

e,

in l

ieu

of

a d

ivid

en

d,

to b

e p

aid

on

17

Decem

ber

20

13 t

o o

rdin

ary

shar

eh

old

ers

reco

rded

in

th

e C

om

pan

y’s

reg

iste

r at

th

e c

lose

of

bu

sin

ess

on

6 D

ecem

ber

20

13.

As

this

cap

ital d

istr

ibu

tion

was

decla

red

aft

er

the r

ep

ort

ing

dat

e, i

t w

ill o

nly

be a

cco

un

ted

fo

r in

th

e

20

14 fi

nan

cia

l year

.

su

bsi

dia

rie

sT

he C

om

pan

y o

wn

s 10

0%

of

the i

ssu

ed

sh

are c

apita

l o

f N

ew

Wo

rld

Tra

der

Lim

ited

(Ir

ela

nd

) an

d

Firs

t Wo

rld

Tra

der

Pro

pri

eta

ry L

imite

d. D

uri

ng

the y

ear

the C

om

pan

y d

isp

ose

d o

f 10

0%

of P

ow

erb

et

Gam

ing

Pro

pri

eta

ry L

imite

d a

nd

10

0%

of

Pu

rple

Cap

ital T

reas

ury

Pro

pri

eta

ry L

imite

d.

Co

rpo

rate

go

vern

ance

an

d s

ust

ain

abil

ity

Th

e c

orp

ora

te g

ove

rnan

ce a

nd

su

stai

nab

ility

rep

ort

is s

et

ou

t o

n p

ages

14 t

o 1

7.

Go

ing

co

nce

rnT

he a

nn

ual

fin

ancia

l sta

tem

en

ts h

ave b

een

pre

par

ed

on

th

e g

oin

g c

on

cern

bas

is. H

avin

g r

evi

ew

ed

the G

rou

p’s

fin

ancia

l p

roje

ctio

ns,

th

e d

irecto

rs b

elie

ve t

hat

th

e G

rou

p w

ill c

on

tinu

e t

rad

ing

as

a

go

ing

co

ncern

in t

he f

ore

seeab

le f

utu

re.

se

cre

tary

T

he s

ecre

tary

of

the C

om

pan

y is

Pete

r B

arra

ble

. P

er

the J

SE L

istin

gs

Req

uirem

en

ts,

the b

oar

d

of

directo

rs h

as d

uri

ng

th

e y

ear

un

der

revi

ew

co

nsi

dere

d a

nd

sat

isfie

d i

tself

of

the c

om

pete

ncy,

qu

alifi

cat

ion

s an

d e

xperi

en

ce o

f th

e C

om

pan

y Se

cre

tary

. T

he b

oar

d o

f d

irecto

rs c

on

firm

s th

at

there

is a

n a

rm’s

-len

gth

rela

tion

ship

with

th

e C

om

pan

y Se

cre

tary

.

Bu

sin

ess

an

d p

ost

al a

dd

ress

of

the

Co

mp

any

Secr

eta

ryB

lock

B, T

he O

ffices

of

Hyd

e P

ark,

Str

ou

tho

s P

lace, H

yde P

ark

219

6.

sp

eci

al r

eso

luti

on

sA

t a

gen

era

l m

eetin

g o

f th

e s

har

eh

old

ers

on

14

Decem

ber

20

12 t

he f

ollo

win

g r

eso

lutio

ns

were

pas

sed

:

G

en

era

l au

tho

rity

to

pla

ce t

he u

nis

sued

sh

ares

of

the C

om

pan

y u

nd

er

the c

on

tro

l o

f th

e

directo

rs;

G

en

era

l au

tho

rity

to

issu

e s

har

es

and

sell

treas

ury

sh

ares

for

cas

h;

G

en

era

l au

tho

rity

fo

r th

e C

om

pan

y to

rep

urc

has

e it

s o

wn

sh

ares;

A

pp

rova

l o

f au

tho

rity

to

directo

rs t

o p

rovi

de fi

nan

cia

l as

sist

ance t

o r

ela

ted

an

d i

nte

r-re

late

d

en

titie

s w

ithin

th

e G

rou

p;

A

pp

rova

l of f

ees

pay

able

to th

e n

on

-exe

cu

tive d

irecto

rs fo

r th

e y

ear

en

ded

31

Au

gu

st 2

013

; an

d

A

pp

rova

l of

the M

em

ora

nd

um

of

Inco

rpo

ratio

n.

sp

eci

al r

eso

luti

on

s b

y tr

adin

g s

ub

sid

iari

es

Ap

pro

val o

f au

tho

rity

to

directo

rs t

o p

rovi

de fi

nan

cia

l ass

ista

nce t

o r

ela

ted

an

d in

ter-

rela

ted

en

titie

s

in o

rder

to e

ffect

the d

isp

osa

l of

Po

werb

et

Gam

ing

Pro

pri

eta

ry L

imite

d a

nd

Pu

rple

Cap

ital T

reas

ury

Pro

pri

eta

ry L

imite

d.

au

dit

ors

BD

O S

A In

co

rpo

rate

d.


RE

PO

RT

OF

TH

E A

UD

IT C

OM

MIT

TE

E

Th

e a

ud

it co

mm

ittee i

s a

pp

oin

ted

by

the s

har

eh

old

ers

. It

ass

ists

th

e b

oar

d b

y ad

visi

ng

an

d

mak

ing

reco

mm

en

dat

ion

s o

n fi

nan

cia

l rep

ort

ing

, ris

k m

anag

em

en

t an

d in

tern

al c

on

tro

ls, e

xtern

al

and

in

tern

al a

ud

it fu

nctio

ns

and

sta

tuto

ry a

nd

reg

ula

tory

co

mp

lian

ce o

f th

e G

rou

p,

bu

t re

tain

s

no

exe

cu

tive p

ow

ers

or

resp

on

sib

ility

. T

here

were

no

new

ap

po

intm

en

ts t

o t

he a

ud

it co

mm

ittee

du

rin

g t

he c

urr

en

t ye

ar a

nd

Den

nis

Alter, C

raig

Car

ter

(au

dit

co

mm

ittee C

hai

rman

) an

d T

hem

beka

Gw

agw

a co

ntin

ued

as

mem

bers

.

Th

e a

ud

it co

mm

ittee m

et

twic

e d

uri

ng

th

e y

ear

. T

he fi

rst

meetin

g w

as o

n 7

No

vem

ber

20

12 t

o

app

rove

th

e 2

012

an

nu

al fi

nan

cia

l sta

tem

en

ts a

nd

ag

ain

on

8 A

ug

ust

20

13 t

o d

eal

with

th

e m

atte

rs

belo

w a

nd

pla

nn

ing

fo

r th

e 3

1 A

ug

ust

20

13 a

ud

it. T

he C

hai

rman

of

the G

rou

p,

Fin

ancia

l D

irecto

r

and

rep

rese

nta

tives

fro

m t

he e

xtern

al a

ud

itors

att

en

d t

he c

om

mitt

ee m

eetin

gs

by

invi

tatio

n.

Th

e

ext

ern

al a

ud

itors

hav

e u

nre

stri

cte

d a

ccess

to

th

e a

ud

it co

mm

ittee a

nd

met

sep

arat

ely

with

th

e

Ch

airm

an o

f th

e a

ud

it co

mm

ittee d

uri

ng

th

e y

ear

.

In e

xecu

tion

of

its d

utie

s d

uri

ng

th

e p

ast

finan

cia

l year

, th

e a

ud

it co

mm

ittee h

as:

n

om

inat

ed

fo

r ap

po

intm

en

t as

au

dito

r o

f th

e G

rou

p a

reg

iste

red

au

dito

r w

ho

, in

th

e o

pin

ion

of

the a

ud

it co

mm

ittee, w

as in

dep

en

den

t o

f th

e G

rou

p;

d

ete

rmin

ed

th

e f

ees

to b

e p

aid

to

th

e a

ud

itor

and

th

e a

ud

itor’s

term

s o

f en

gag

em

en

t;

en

sure

d t

hat

th

e a

pp

oin

tmen

t o

f th

e a

ud

itor

co

mp

lies

with

th

e C

om

pan

ies

Act

and

an

y o

ther

leg

isla

tion

rela

ting

to

th

e a

pp

oin

tmen

t o

f au

dito

rs;

d

ete

rmin

ed

th

e n

atu

re a

nd

ext

en

t o

f an

y n

on

-au

dit

serv

ices

wh

ich

th

e a

ud

itor

may

pro

vid

e t

o

the G

rou

p;

p

re-a

pp

rove

d a

ny

pro

po

sed

co

ntr

act

with

th

e a

ud

itor

for

the p

rovi

sio

n o

f n

on

-au

dit

serv

ices

to

the G

rou

p;

re

ceiv

ed

an

d d

eal

t ap

pro

pri

ately

with

an

y co

mp

lain

ts r

ela

ting

to

th

e a

cco

un

ting

pra

ctic

es

of

the G

rou

p o

r to

th

e c

on

ten

t o

r au

diti

ng

of i

ts fi

nan

cia

l sta

tem

en

ts, o

r to

an

y re

late

d m

atte

r; a

nd

p

erf

orm

ed

oth

er

fun

ctio

ns

as d

ete

rmin

ed

by

the b

oar

d.

Th

e a

ud

it co

mm

ittee is

of

the v

iew

th

at t

he s

ize o

f th

e G

rou

p d

oes

no

t w

arra

nt

the f

orm

atio

n o

f

an in

tern

al a

ud

it d

ep

artm

en

t. T

his

will

be r

evi

ew

ed

on

an

on

go

ing

bas

is t

o d

ete

rmin

e w

heth

er

on

e

will

be r

eq

uired

in t

he f

utu

re.

Per

the C

om

pan

ies

Act

req

uirem

en

ts,

the c

om

mitt

ee h

as c

on

sid

ere

d t

he i

nd

ep

en

den

ce o

f th

e

ext

ern

al a

ud

itors

an

d h

as c

on

clu

ded

th

at t

he e

xtern

al a

ud

itor

has

been

ind

ep

en

den

t o

f th

e G

rou

p

thro

ug

ho

ut

the y

ear

tak

ing

into

acco

un

t al

l oth

er

no

n-a

ud

it se

rvic

es

perf

orm

ed

an

d c

ircu

mst

ances

kno

wn

to

th

e c

om

mitt

ee.

Per

the J

SE L

istin

gs

Req

uirem

en

ts,

the c

om

mitt

ee m

ust

co

nsi

der

and

be s

atis

fied

, o

n a

n a

nn

ual

bas

is,

with

th

e a

pp

rop

riat

en

ess

of

the e

xpert

ise a

nd

exp

eri

en

ce o

f th

e F

inan

cia

l D

irecto

r an

d

the G

rou

p m

ust

co

nfir

m t

his

by

rep

ort

ing

to

th

e s

har

eh

old

ers

in

its

an

nu

al r

ep

ort

th

at t

he a

ud

it

co

mm

ittee h

as e

xecu

ted

th

is r

esp

on

sib

ility

. In

th

is r

esp

ect,

we b

elie

ve t

hat

Gar

y va

n D

yk, t

he C

hie

f

Fin

ancia

l an

d O

pera

ting

Offi

cer, p

oss

ess

es

the a

pp

rop

riat

e e

xpert

ise a

nd

exp

eri

en

ce t

o m

eet

his

resp

on

sib

ilitie

s in

that

po

sitio

n. I

n a

dd

itio

n, t

he fi

nan

ce fu

nctio

n is

ad

eq

uat

ely

sta

ffed

an

d reso

urc

ed

and

is a

ble

to

fu

lfill

its f

un

ctio

n a

deq

uat

ely

.

Fin

anci

al s

tate

me

nts

Follo

win

g o

ur

revi

ew

of

the G

rou

p a

nd

Co

mp

any

ann

ual

fin

ancia

l st

atem

en

ts f

or

the y

ear

en

ded

31

Au

gu

st 2

013

, we a

re o

f th

e o

pin

ion

th

at, i

n a

ll m

ateri

al r

esp

ects

, th

ey

co

mp

ly w

ith In

tern

atio

nal

Fin

ancia

l Rep

ort

ing

Sta

nd

ard

s, t

he S

AIC

A F

inan

cia

l Rep

ort

ing

Gu

ides

as is

sued

by

the A

cco

un

ting

Pra

ctic

es

Co

mm

ittee

and

Fi

nan

cia

l R

ep

ort

ing

P

ron

ou

ncem

en

ts

as

issu

ed

b

y th

e

Fin

ancia

l

Rep

ort

ing

Sta

nd

ard

s C

ou

ncil

and

in

th

e m

ann

er

req

uired

by

the C

om

pan

ies

Act,

No

71

of

20

08

and

th

e L

istin

gs

Req

uirem

en

ts o

f th

e J

SE L

imite

d, a

nd

th

at t

hey

fair

ly p

rese

nt

the fi

nan

cia

l po

sitio

n

at 3

1 A

ug

ust

20

13 f

or

Pu

rple

Cap

ital

Lim

ited

an

d t

he r

esu

lts

of

op

era

tion

s an

d c

ash

flo

ws

for

the

peri

od

th

en

en

ded

.

On

beh

alf

of

the a

ud

it co

mm

ittee

Cra

ig C

arte

r8

No

vem

ber

20

13


RE

PO

RT

OF

TH

E I

ND

EP

EN

DE

NT

AU

DIT

OR

To t

he

sh

are

ho

lde

rs o

f P

urp

le C

apit

al L

imit

ed

We h

ave a

ud

ited

th

e G

rou

p a

nn

ual

fin

ancia

l sta

tem

en

ts a

nd

an

nu

al fi

nan

cia

l sta

tem

en

ts o

f P

urp

le

Cap

ital L

imite

d, w

hic

h c

om

pri

se th

e c

on

solid

ated

an

d s

ep

arat

e s

tate

men

ts o

f fin

ancia

l po

sitio

n a

s at

31

Au

gu

st 2

013

, th

e c

on

solid

ated

an

d s

ep

arat

e s

tate

men

ts o

f co

mp

reh

en

sive

inco

me, c

on

solid

ated

and

sep

arat

e s

tate

men

ts o

f ch

ang

es

in e

qu

ity, an

d c

on

solid

ated

an

d s

ep

arat

e s

tate

men

ts o

f cas

h

flow

s fo

r th

e y

ear

th

en

en

ded

, a s

um

mar

y o

f si

gn

ifican

t ac

co

un

ting

po

licie

s an

d o

ther

exp

lan

ato

ry

no

tes,

as

set

ou

t o

n p

ages

24 t

o 7

1.

dir

ect

ors

’ re

spo

nsi

bil

ity

for

the

fin

anci

al s

tate

me

nts

Th

e C

om

pan

y’s

directo

rs a

re r

esp

on

sib

le f

or

the p

rep

arat

ion

an

d f

air

pre

sen

tatio

n o

f th

ese

an

nu

al

finan

cia

l st

atem

en

ts i

n a

cco

rdan

ce w

ith I

nte

rnat

ion

al F

inan

cia

l R

ep

ort

ing

Sta

nd

ard

s, t

he S

AIC

A

Fin

ancia

l R

ep

ort

ing

G

uid

es

as is

sued

b

y th

e A

cco

un

ting

P

ractic

es

Co

mm

ittee an

d Fi

nan

cia

l

Rep

ort

ing

Pro

no

un

cem

en

ts a

s is

sued

by

the F

inan

cia

l R

ep

ort

ing

Sta

nd

ard

s C

ou

ncil

and

in

th

e

man

ner

req

uired

by

the C

om

pan

ies

Act,

No

71

of

20

08

. T

his

resp

on

sib

ility

in

clu

des:

desi

gn

ing

,

imp

lem

en

ting

an

d m

ain

tain

ing

in

tern

al c

on

tro

l re

leva

nt

to t

he p

rep

arat

ion

an

d f

air

pre

sen

tatio

n

of

ann

ual

fin

ancia

l st

atem

en

ts t

hat

are

fre

e f

rom

mat

eri

al m

isst

atem

en

t, w

heth

er

du

e t

o f

rau

d o

r

err

or;

sele

ctin

g a

nd

ap

ply

ing

ap

pro

pri

ate a

cco

un

ting

po

licie

s; a

nd

mak

ing

acco

un

ting

est

imat

es

that

are

reas

on

able

in t

he c

ircu

mst

ances.

au

dit

or’

s re

spo

nsi

bil

ity

Ou

r re

spo

nsi

bili

ty i

s to

exp

ress

an

op

inio

n o

n t

hese

an

nu

al fi

nan

cia

l st

atem

en

ts b

ased

on

ou

r

aud

it. W

e c

on

du

cte

d o

ur

aud

it in

acco

rdan

ce w

ith I

nte

rnat

ion

al S

tan

dar

ds

on

Au

diti

ng

. T

ho

se

stan

dar

ds

req

uire t

hat

we c

om

ply

with

eth

ical

req

uirem

en

ts a

nd

pla

n a

nd

perf

orm

th

e a

ud

it to

ob

tain

reas

on

able

ass

ura

nce w

heth

er

the a

nn

ual

fin

ancia

l st

atem

en

ts a

re f

ree f

rom

mat

eri

al

mis

stat

em

en

t.

An

au

dit

invo

lves

perf

orm

ing

p

roced

ure

s to

o

bta

in

aud

it evi

den

ce

abo

ut

the

amo

un

ts

and

dis

clo

sure

s in

th

e a

nn

ual

fin

ancia

l st

atem

en

ts.

Th

e p

roced

ure

s se

lecte

d d

ep

en

d o

n t

he a

ud

itor’s

jud

gem

en

t, in

clu

din

g t

he a

ssess

men

t o

f th

e r

isks

of

mat

eri

al m

isst

atem

en

t o

f th

e a

nn

ual

fin

ancia

l

stat

em

en

ts, w

heth

er

du

e t

o f

rau

d o

r err

or.

In m

akin

g t

ho

se r

isk

asse

ssm

en

ts, t

he a

ud

itor

co

nsi

ders

inte

rnal

co

ntr

ol

rele

van

t to

th

e e

ntit

y’s

pre

par

atio

n a

nd

fai

r p

rese

nta

tion

of

the a

nn

ual

fin

ancia

l

stat

em

en

ts in

ord

er t

o d

esi

gn

au

dit

pro

ced

ure

s th

at a

re a

pp

rop

riat

e in

the c

ircu

mst

ances,

bu

t no

t fo

r

the p

urp

ose

of

exp

ress

ing

an

op

inio

n o

n t

he e

ffectiv

en

ess

of

the e

ntit

y’s

inte

rnal

co

ntr

ol.

An

au

dit

also

inclu

des

eva

luat

ing

th

e a

pp

rop

riat

en

ess

of

acco

un

ting

po

licie

s u

sed

an

d t

he r

eas

on

able

ness

of ac

co

un

ting

est

imat

es

mad

e b

y th

e d

irecto

rs, a

s w

ell

as e

valu

atin

g t

he o

vera

ll p

rese

nta

tion

of th

e

ann

ual

fin

ancia

l sta

tem

en

ts. W

e b

elie

ve t

hat

th

e a

ud

it evi

den

ce w

e h

ave o

bta

ined

is s

uffi

cie

nt

and

app

rop

riat

e t

o p

rovi

de a

bas

is f

or

ou

r au

dit

op

inio

n.

op

inio

nIn

ou

r o

pin

ion

, th

e an

nu

al fi

nan

cial

sta

tem

ents

an

d G

rou

p a

nn

ual

fin

anci

al s

tate

men

ts p

rese

nt

fairl

y,

in a

ll m

ater

ial

resp

ects

, th

e co

nso

lidat

ed a

nd

sep

arat

e fin

anci

al p

osi

tion

of

the

Gro

up

an

d o

f th

e

Co

mp

any

as o

f 31

Au

gu

st 2

013

, an

d o

f th

eir

con

solid

ated

an

d s

epar

ate

finan

cial

per

form

ance

an

d

thei

r co

nso

lidat

ed a

nd

sep

arat

e ca

sh fl

ow

s fo

r th

e ye

ar t

hen

en

ded

in a

cco

rdan

ce w

ith In

tern

atio

nal

Fin

anci

al R

epo

rtin

g S

tan

dar

ds,

th

e SA

ICA

Fin

anci

al R

epo

rtin

g G

uid

es a

s is

sued

by

the

Acc

ou

ntin

g

Pra

ctic

es C

om

mitt

ee a

nd

Fin

anci

al R

epo

rtin

g P

ron

ou

nce

men

ts a

s is

sued

by

the

Fin

anci

al R

epo

rtin

g

Stan

dar

ds

Co

un

cil a

nd

its

succ

esso

r an

d in

the

man

ner

req

uire

d b

y th

e C

om

pan

ies

Act

, No

71

of 2

00

8.

oth

er

rep

ort

s re

qu

ire

d b

y th

e C

om

pan

ies

act

As

par

t o

f o

ur

aud

it o

f th

e fi

nan

cia

l st

atem

en

ts f

or

the y

ear

en

ded

31

Au

gu

st 2

013

, w

e h

ave r

ead

the d

irecto

rs’ r

ep

ort

, th

e a

ud

it co

mm

ittee’s

rep

ort

an

d t

he C

om

pan

y Se

cre

tary

’s d

ecla

ratio

n fo

r th

e

pu

rpo

se o

f id

en

tifyi

ng

wh

eth

er

there

are

mat

eri

al in

co

nsi

sten

cie

s b

etw

een

th

ese

rep

ort

s an

d t

he

aud

ited

fin

ancia

l sta

tem

en

ts. T

hese

rep

ort

s ar

e t

he r

esp

on

sib

ility

of th

e r

esp

ectiv

e p

rep

arers

. Bas

ed

on

read

ing

th

ese

rep

ort

s w

e h

ave n

ot

iden

tified

mat

eri

al i

nco

nsi

sten

cie

s b

etw

een

th

ese

rep

ort

s

and

th

e a

ud

ited

fin

ancia

l sta

tem

en

ts. H

ow

eve

r, w

e h

ave n

ot

aud

ited

th

ese

rep

ort

s an

d a

cco

rdin

gly

do

no

t exp

ress

an

op

inio

n o

n t

hese

rep

ort

s.

BD

O S

ou

th A

fric

a In

corp

ora

ted

Reg

iste

red

Au

dito

rs

Per:

Fre

d B

ruce-B

ran

d

Directo

r

8 N

ove

mb

er

20

13

22

Welli

ng

ton

Ro

ad, P

arkt

ow

n


GR

OU

P S

TA

TE

ME

NT

OF

FIN

AN

CIA

L P

OS

ITIO

NA

s at

31

Au

gu

st 2

013

No

tes

20

13r

’00

0 2

012

R’0

00

ASS

ET

S

Eq

uip

men

t13

3 0

721

43

9

Inta

ng

ible

ass

ets

an

d g

oo

dw

ill14

20

6 2

23

215

18

9

Inte

rest

s in

ass

ocia

te c

om

pan

ies

155

20

06

15

2

Ava

ilab

le-f

or-

sale

inve

stm

en

t16

–6

4

Oth

er

inve

stm

en

ts16

30

16

74

5 4

85

Lon

g-t

erm

receiv

able

s17

11

8

1 10

2

Defe

rred

tax

ass

ets

18 2

2 7

11

17 2

83

Tota

l no

n-c

urr

en

t as

sets

26

7 4

91

28

6 7

14

Trad

e a

nd

oth

er

receiv

able

s19

33

573

4 3

14

Cas

h a

nd

cas

h e

qu

ival

en

ts2

0 1

23

36

16

3 6

87

Tota

l cu

rre

nt

asse

ts 1

56

93

4

6

8 0

01

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l ass

ets

42

4 4

25

3

54

715

EQ

UIT

Y A

ND

LIA

BIL

ITIE

S

Shar

e c

apita

l an

d p

rem

ium

21

475

00

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75 9

75

Accu

mu

late

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loss

)/p

rofit

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19

5)

(217

26

8)

Oth

er

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rves

21

17 2

14

14 8

90

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y at

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97

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1

Tota

l no

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t lia

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1

Ban

k o

verd

raft

20

3 8

36

–

Tax

pay

able

46

9

56

0

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7 8

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Pro

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on

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Tota

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97

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87

Tota

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15

GR

OU

P S

TA

TE

ME

NT

OF

CO

MP

RE

HE

NS

IVE

IN

CO

ME

For

the y

ear

en

ded

31

Au

gu

st 2

013

No

tes

20

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’00

0 2

012

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00

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nti

nu

ing

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era

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ns

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e8

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92

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e13

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83

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er

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10 2

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02

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gs

be

fore

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rest

, de

pre

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ion

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d

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atio

n13

30

8

13 2

85

Inte

rest

inco

me

113

68

3

72

Inte

rest

exp

en

se11

(1 0

84

)(1

34

3)

Dep

recia

tion

an

d a

mo

rtis

atio

n9

(1 7

97)

(1 6

17)

Pro

fit

be

fore

fai

r va

lue

ad

just

me

nts

an

d t

ax 1

0 7

95

10

69

7

Fair

val

ue a

dju

stm

en

ts(1

5 3

24

)3

35

6

GT

E d

istr

ibu

tion

10–

5 8

32

(Lo

ss)/

pro

fit

be

fore

tax

(4 5

29

)19

88

5

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rren

t an

d d

efe

rred

tax

12 2

39

1

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22

)

(Lo

ss)/

pro

fit

fro

m c

on

tin

uin

g o

pe

rati

on

s (

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38

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66

3

Dis

con

tin

ue

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pe

rati

on

s

Loss

fro

m d

isco

ntin

ued

op

era

tion

s, n

et

of

tax

35

(17

310

)(1

4 4

49

)

Pro

fit o

n s

ale o

f d

isco

ntin

ued

op

era

tion

s3

52

1 71

3–

Pro

fit

for

the

pe

rio

d 2

26

53

214

Pro

fit

attr

ibu

tab

le t

o:

Ow

ners

of

the C

om

pan

y2

26

5

3 9

48

Min

ori

ty in

tere

st–

(7

34

)

2

26

5

3 2

14

Ear

nin

gs

pe

r sh

are

Bas

ic e

arn

ing

s p

er

shar

e2

20

,28

0,4

8

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ted

ear

nin

gs

per

shar

e2

20

,27

0,4

6

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nin

gs

pe

r sh

are

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on

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rati

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er

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e2

2(0

,26

)2

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ted

ear

nin

gs

per

shar

e2

2(0

,25

)2

,06


GR

OU

P S

TA

TE

ME

NT

OF

OT

HE

R

CO

MP

RE

HE

NS

IVE

IN

CO

ME

For

the y

ear

en

ded

31

Au

gu

st 2

013

No

tes

20

13r

’00

0 2

012

R’0

00

Pro

fit

for

the

pe

rio

d2

26

53

214

Oth

er

com

pre

he

nsi

ve in

com

e

Item

s th

at m

ay b

e r

ecla

ssifi

ed

su

bse

qu

en

tly

to p

rofit

/lo

ss

Fore

ign

cu

rren

cy

tran

slat

ion

rese

rve

(84

7)(4

80

)

Ava

ilab

le-f

or-

sale

reva

luat

ion

s16

42

2

Ava

ilab

le-f

or-

sale

ass

ets

so

ld (

44

)–

Tax

eff

ect

on

th

e a

vaila

ble

-fo

r-sa

le r

eva

luat

ion

s–

–

Tota

l co

mp

reh

en

sive

pro

fit

1 4

162

73

6

Tota

l co

mp

reh

en

sive

pro

fit

attr

ibu

tab

le t

o:

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ners

of

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om

pan

y1

416

3 4

70

No

n-c

on

tro

llin

g in

tere

st–

(73

4)

1 4

162

73

6

GR

OU

P S

TA

TE

ME

NT

OF

CA

SH

FLO

WS

For

the y

ear

en

ded

31

Au

gu

st 2

013

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tes

20

13r

’00

0 2

012

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00

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h fl

ow

s fr

om

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era

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ctiv

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h g

en

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by

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tion

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65

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24 5

98

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pai

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(3 1

70)

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01)

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h fl

ow

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en

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ted

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pe

rati

ng

act

ivit

ies

62

64

72

1 2

97

Cas

h fl

ow

s fr

om

inve

stin

g a

ctiv

itie

s

Inte

rest

receiv

ed

–3

04

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rest

pai

d(9

27)

(1 6

22

)

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uis

itio

n o

f eq

uip

men

t an

d in

tan

gib

les

29.2

(3 5

32

)(5

93

)

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uis

itio

n o

f in

vest

men

ts2

9.3

(1 0

54

)(1

63

9)

Pro

ceed

s fr

om

sal

e o

f in

vest

men

ts6

5–

Pro

ceed

s fr

om

sa

le o

f su

bsi

dia

ry3

61

04

8–

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h s

old

on

sal

e o

f su

bsi

dia

ry3

6(5

93

)–

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h fl

ow

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tilis

ed

by

inve

stin

g a

ctiv

itie

s(4

99

3)

(3 5

50

)

Cas

h fl

ow

s fr

om

fin

anci

ng

act

ivit

ies

Pro

ceed

s fr

om

th

e is

sue o

f sh

are c

apita

l8

86

18

Loan

rep

aym

en

ts(1

90

4)

(5 5

55

)

Cas

h fl

ow

s u

tilis

ed

by

fin

anci

ng

act

ivit

ies

(1 8

16)

(4 9

37)

Net

incre

ase in

cas

h a

nd

cas

h e

qu

ival

en

ts 5

5 8

38

12 8

10

Cas

h a

nd

cas

h e

qu

ival

en

ts a

t b

eg

inn

ing

of

peri

od

63

68

75

0 8

77

Cas

h a

nd

cas

h e

qu

ival

en

ts a

t 3

1 A

ug

ust

20

119

52

56

3 6

87


GR

OU

P S

TA

TE

ME

NT

OF

CH

AN

GE

S I

N E

QU

ITY

For

the y

ear

en

ded

31

Au

gu

st 2

013

No

tes

sh

are

cap

ital

r’0

00

shar

e p

rem

ium

r’0

00

acc

u-

mu

late

d lo

ssr

’00

0

Fore

ign

cu

rren

cy t

ran

slat

ion

re

serv

e*r

’00

0

shar

e-b

ased

pay

men

t r

eser

ver

’00

0

ava

ilab

le-

for-

sale

rese

rve

r’0

00

oth

erre

serv

es#

r’0

00

tota

lr

’00

0

no

n-

con

tro

llin

gin

tere

str

’00

0

tota

leq

uit

yr

’00

0

Bal

ance

at

1 Se

pte

mb

er

20

118

18

24

67

174

(22

1 2

16)

(4 1

57)

17 8

15–

(675

)2

67

123

48

92

67

612

Tota

l co

mp

reh

en

sive

inco

me

fo

r th

e p

eri

od

Pro

fit o

r lo

ss–

–3

94

8–

––

–3

94

8(7

34

)3

214

Oth

er

com

pre

he

nsi

ve in

com

e

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ign

cu

rren

cy

tran

slat

ion

rese

rve

21

––

–(4

80

)–

––

(48

0)

–(4

80

)

Ava

ilab

le-f

or-

sale

rele

ased

to

pro

fit

or

loss

––

––

–2

–2

–2

Co

ntr

ibu

tio

ns

by

and

dis

trib

uti

on

s to

ow

ne

rs

Incre

ased

sh

areh

old

ing

in P

ow

erb

et

––

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(517

)(5

17)

245

(272

)

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es

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ed

21

25

59

4–

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619

–6

19

Shar

e-b

ased

pay

men

t exp

en

ses

24–

––

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90

2–

–2

90

2–

2 9

02

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ance

at

1 Se

pte

mb

er

20

128

20

74

67

768

(217

26

8)

(4 6

37)

20

717

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19

2)

273

59

7–

273

59

7

Tota

l co

mp

reh

en

sive

inco

me

fo

r th

e p

eri

od

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fit o

r lo

ss–

–2

26

5–

––

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26

5–

2 2

65

Oth

er

com

pre

he

nsi

ve in

com

e

Fore

ign

cu

rren

cy

tran

slat

ion

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rve

21

––

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47)

––

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47)

–(8

47)

Ava

ilab

le-f

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sale

rele

ased

to

pro

fit o

r lo

ss–

––

––

42

–4

2–

42

Sale

of

avai

lab

le-f

or-

sale

recyc

led

to

pro

fit a

nd

loss

––

––

–(4

4)

–(4

4)

–(4

4)

Co

ntr

ibu

tio

ns

by

and

dis

trib

uti

on

s to

ow

ne

rs

Ow

n p

urc

has

ed

sh

ares

21

(55

)(9

99

)–

––

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(1 0

54

)–

(1 0

54

)

Shar

es

issu

ed

21

48

4–

––

––

88

–8

8

Sale

of

Po

werb

et

Gam

ing

Pro

pri

eta

ry L

imite

d–

–(1

19

2)

––

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192

––

–

Shar

e-b

ased

pay

men

t exp

en

ses

24–

––

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98

1–

–1

98

1–

1 9

81

Bal

ance

at

31

Au

gu

st 2

013

8 1

56

46

6 8

53

(216

19

5)

(5 4

84

)2

2 6

98

––

276

02

8–

2

76 0

28

* Fo

reig

n c

urr

en

cy

tran

slat

ion

rese

rve is

th

e r

ese

rve c

reat

ed

on

tra

nsl

atio

n o

f fo

reig

n o

pera

tion

s.# O

ther

rese

rves

co

mp

rise

s th

e s

tep

-acq

uis

itio

n o

f 10

0%

of

Po

werb

et

Gam

ing

.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

For

the y

ear

en

ded

31

Au

gu

st 2

013

1.

re

po

rtin

g e

nti

ty

Pu

rple

Cap

ital L

imite

d (

the

Co

mp

any)

is a

co

mp

any

do

mic

iled

in S

ou

th A

fric

a. T

he

add

ress

of

the

Co

mp

any’

s re

gis

tere

d o

ffice

is

Blo

ck B

, T

he

Offi

ces

of

Hyd

e P

ark,

Str

ou

tho

s P

lace

, H

yde

Par

k 219

6. T

he

finan

cial

sta

tem

ents

of

the

Gro

up

as

at a

nd

fo

r th

e ye

ar e

nd

ed 3

1 A

ug

ust

20

13

com

pris

e th

e C

om

pan

y an

d it

s su

bsi

dia

ries

(to

get

her

refe

rred

to a

s th

e G

rou

p a

nd

ind

ivid

ual

ly a

s

Gro

up

en

titie

s). T

he

Gro

up

is p

rimar

ily in

volv

ed in

fin

anci

al s

ervi

ces

(see

no

te 6

).

2.

Bas

is o

f p

rep

arat

ion

St

ate

me

nt

of

com

plia

nce

T

he fi

nan

cia

l st

atem

en

ts h

ave b

een

pre

par

ed

in

co

nfo

rmity

with

In

tern

atio

nal

Fin

ancia

l

Rep

ort

ing

Sta

nd

ard

s, t

he S

AIC

A F

inan

cia

l R

ep

ort

ing

Gu

ides

as i

ssu

ed

by

the A

cco

un

ting

Pra

ctic

es

Co

mm

ittee a

nd

Fin

ancia

l R

ep

ort

ing

Pro

no

un

cem

en

ts a

s is

sued

by

the F

inan

cia

l

Rep

ort

ing

Sta

nd

ard

s C

ou

ncil,

th

e r

eq

uirem

en

ts o

f th

e C

om

pan

ies

Act,

No

71

of 2

00

8 a

nd

th

e

List

ing

s R

eq

uirem

en

ts o

f th

e J

SE L

imite

d.

T

he

finan

cial

st

atem

ents

w

ere

auth

oris

ed

for

issu

e b

y th

e b

oar

d

of

dire

cto

rs

on

8 N

ove

mb

er 2

013

.

T

he a

cco

un

ting

po

licie

s se

t o

ut

belo

w h

ave b

een

ap

plie

d c

on

sist

en

tly

to a

ll th

e p

eri

od

s

pre

sen

ted

in

th

ese

fin

ancia

l st

atem

en

ts.

Th

e

finan

cia

l st

atem

en

ts

are

pre

par

ed

o

n

the

his

tori

cal

co

st b

asis

exc

ep

t fo

r th

e m

eas

ure

men

t o

f cert

ain

fin

ancia

l in

stru

men

ts a

t fa

ir v

alu

e.

B

asis

of

me

asu

rem

en

t

T

he

finan

cial

sta

tem

ents

hav

e b

een

pre

par

ed o

n th

e h

isto

rical

co

st b

asis

exc

ept f

or t

he

follo

win

g:

Deri

vativ

e fi

nan

cia

l in

stru

men

ts a

re m

eas

ure

d a

t fa

ir v

alu

e;

Fin

ancia

l in

stru

men

ts a

t fa

ir v

alu

e t

hro

ug

h p

rofit

or

loss

are

meas

ure

d a

t fa

ir v

alu

e;

Shar

e-b

ased

pay

men

ts a

re m

eas

ure

d a

t fa

ir v

alu

e;

Ava

ilab

le-f

or-

sale

fin

ancia

l ass

ets

are

meas

ure

d a

t fa

ir v

alu

e;

and

Ven

ture

cap

ital a

sso

cia

tes

are c

arri

ed

at

fair

val

ue.

T

he m

eth

od

s u

sed

to

meas

ure

fai

r va

lues

are d

iscu

ssed

fu

rth

er

in n

ote

4.

Fu

nct

ion

al a

nd

pre

sen

tati

on

cu

rre

ncy

T

hese

fin

ancia

l st

atem

en

ts a

re p

rese

nte

d i

n S

ou

th A

fric

an R

and

, w

hic

h i

s th

e C

om

pan

y’s

fun

ctio

nal

cu

rren

cy.

All

finan

cia

l in

form

atio

n p

rese

nte

d i

n S

ou

th A

fric

an R

and

has

been

rou

nd

ed

to

th

e n

ear

est

th

ou

san

d.

U

se o

f e

stim

ate

s an

d ju

dg

em

en

ts

T

he p

rep

arat

ion

of

finan

cia

l st

atem

en

ts i

n c

on

form

ity w

ith I

FRS

req

uires

man

agem

en

t to

m

ake j

ud

gem

en

ts,

est

imat

es

and

ass

um

ptio

ns

that

aff

ect

the a

pp

licat

ion

of

po

licie

s an

d

rep

ort

ed

am

ou

nts

of a

ssets

an

d li

abili

ties,

inco

me a

nd

exp

en

ses.

Th

e e

stim

ates

and

ass

ocia

ted

as

sum

ptio

ns

are b

ased

on

his

tori

cal

exp

eri

en

ce a

nd

var

iou

s o

ther

facto

rs t

hat

are

belie

ved

to

be r

eas

on

able

un

der

the c

ircu

mst

ances,

th

e r

esu

lts

of

wh

ich

fo

rm t

he b

asis

of

mak

ing

th

e

jud

gem

en

ts a

bo

ut

car

ryin

g v

alu

es

of

asse

ts a

nd

lia

bili

ties

that

are

no

t re

adily

ap

par

en

t fr

om

o

ther

sou

rces.

Actu

al r

esu

lts

may

diff

er

fro

m t

hese

est

imat

es.

In

form

atio

n o

n s

ign

ifican

t ar

eas

of

est

imat

ion

un

cert

ain

ty c

an b

e f

ou

nd

in

th

e f

ollo

win

g

no

tes:

no

te 4

(d

ete

rmin

atio

n o

f fa

ir v

alu

es)

, no

te 1

6 (o

ther

inve

stm

en

ts a

nd

ava

ilab

le-f

or-

sale

in

vest

men

ts),

no

te 1

8 (

defe

rred

tax

) an

d n

ote

24

(sh

are-b

ased

pay

men

ts).

V

alu

atio

n o

f fi

nan

cial

inst

rum

en

ts

T

he G

rou

p m

eas

ure

s fa

ir v

alu

es

usi

ng

th

e f

ollo

win

g f

air

valu

e h

iera

rch

y th

at r

efle

cts

th

e

sig

nifi

can

ce o

f th

e in

pu

ts u

sed

in m

akin

g t

he m

eas

ure

men

ts:

Leve

l 1: Q

uo

ted

mar

ket

pri

ce (u

nad

just

ed

) in

an

activ

e m

arke

t fo

r an

iden

tical

inst

rum

en

t;

Leve

l 2:

Val

uat

ion

tech

niq

ues

bas

ed

on

ob

serv

able

inp

uts

, eith

er

dire

ctly

(i.e

. as

pric

es)

or

ind

irect

ly (i

.e. d

eriv

ed

fro

m p

rices)

. Th

is c

ateg

ory

incl

ud

es

inst

rum

en

ts v

alu

ed

usi

ng

: qu

ote

d

mar

ket p

rices

in a

ctiv

e m

arke

ts fo

r si

mila

r in

stru

men

ts; q

uo

ted

pric

es

for

iden

tical

or

sim

ilar

inst

rum

en

ts in

mar

kets

th

at a

re c

on

sid

ere

d le

ss t

han

act

ive;

or

oth

er

valu

atio

n t

ech

niq

ues

wh

ere

all

sig

nifi

can

t in

pu

ts a

re d

irect

ly o

r in

dire

ctly

ob

serv

able

fro

m m

arke

t d

ata;

an

d

Leve

l 3

: V

alu

atio

n

tech

niq

ues

usi

ng

si

gn

ifican

t u

no

bse

rvab

le

inp

uts

. T

his

cat

eg

ory

in

clu

des

all

inst

rum

en

ts w

here

th

e v

alu

atio

n t

ech

niq

ue i

nclu

des

inp

uts

no

t b

ased

on

o

bse

rvab

le d

ata

and

th

e u

no

bse

rvab

le in

pu

ts h

ave a

sig

nifi

can

t eff

ect

on

th

e in

stru

men

t’s

valu

atio

n.

Fa

ir v

alu

es

of

finan

cia

l as

sets

an

d l

iab

ilitie

s th

at a

re t

rad

ed

in

activ

e m

arke

ts a

re b

ased

on

q

uo

ted

mar

ket

pri

ces

or

deal

er

pri

ce q

uo

tatio

ns.

Fo

r al

l oth

er

finan

cia

l in

stru

men

ts t

he G

rou

p

dete

rmin

es

fair

val

ues

usi

ng

val

uat

ion

tech

niq

ues

(see n

ote

4).

Fa

ir v

alu

es

of

finan

cia

l as

sets

an

d l

iab

ilitie

s th

at a

re t

rad

ed

in

activ

e m

arke

ts a

re b

ased

on

q

uo

ted

mar

ket

pri

ces

or

deal

er

pri

ce q

uo

tatio

ns.

Fo

r al

l oth

er

finan

cia

l in

stru

men

ts t

he G

rou

p

dete

rmin

es

fair

val

ues

usi

ng

val

uat

ion

tech

niq

ues

(see n

ote

4).

T

he

Gro

up

u

ses

wid

ely

re

co

gn

ised

va

luat

ion

m

od

els

fo

r d

ete

rmin

ing

th

e

fair

va

lue

of

co

mm

on

an

d

mo

re

sim

ple

fin

ancia

l in

stru

men

ts.

Ob

serv

able

p

rices

and

m

od

el

inp

uts

are u

sual

ly a

vaila

ble

in

th

e m

arke

t fo

r lis

ted

deb

t an

d e

qu

ity s

ecu

ritie

s, e

xch

ang

e t

rad

ed

deri

vativ

es

and

ove

r th

e c

ou

nte

r d

eri

vativ

es.

Ava

ilab

ility

of

ob

serv

able

mar

ket

pri

ces

and

mo

del i

np

uts

red

uces

the n

eed

for

man

agem

en

t ju

dg

em

en

t an

d e

stim

atio

n a

nd

als

o r

ed

uces

the u

ncert

ain

ty a

sso

cia

ted

with

dete

rmin

atio

n o

f fa

ir v

alu

es.


2.

Bas

is o

f p

rep

arat

ion

co

ntin

ued

U

se o

f e

stim

ate

s an

d ju

dg

em

en

ts c

on

tinu

ed

V

alu

atio

n o

f fi

nan

cial

inst

rum

en

ts c

on

tinu

ed

A

vaila

bili

ty o

f o

bse

rvab

le m

arke

t p

rices

and

in

pu

ts v

arie

s d

ep

en

din

g o

n t

he p

rod

ucts

an

d

mar

kets

an

d i

s p

ron

e t

o c

han

ges

bas

ed

on

sp

ecifi

c e

ven

ts a

nd

gen

era

l co

nd

itio

ns

in t

he

finan

cia

l mar

kets

.

Fo

r m

ore

co

mp

lex

inst

rum

en

ts,

the G

rou

p u

ses

pro

pri

eta

ry v

alu

atio

n m

od

els

, w

hic

h a

re

usu

ally

deve

lop

ed

fro

m r

eco

gn

ised

val

uat

ion

mo

dels

. So

me o

r al

l o

f th

e s

ign

ifican

t in

pu

ts

into

th

ese

mo

dels

may

no

t b

e o

bse

rvab

le in

th

e m

arke

t, a

nd

are

deri

ved

fro

m m

arke

t p

rices

or

rate

s o

r ar

e e

stim

ated

bas

ed

on

ass

um

ptio

ns.

Val

uat

ion

mo

dels

th

at e

mp

loy

sig

nifi

can

t

un

ob

serv

able

in

pu

ts r

eq

uire a

hig

her

deg

ree o

f m

anag

em

en

t ju

dg

em

en

t an

d e

stim

atio

n i

n

the d

ete

rmin

atio

n o

f fa

ir v

alu

e. M

anag

em

en

t ju

dg

em

en

t an

d e

stim

atio

n a

re u

sual

ly r

eq

uired

for

sele

ctio

n o

f th

e a

pp

rop

riat

e v

alu

atio

n m

od

el

to b

e u

sed

, d

ete

rmin

atio

n o

f exp

ecte

d

futu

re c

ash

flo

ws

on

th

e fi

nan

cia

l in

stru

men

t b

ein

g v

alu

ed

, d

ete

rmin

atio

n o

f p

rob

abili

ty o

f

co

un

terp

arty

defa

ult a

nd

pre

pay

men

ts a

nd

sele

ctio

n o

f ap

pro

pri

ate d

isco

un

t ra

tes.

T

he t

able

belo

w a

nal

yses

finan

cia

l in

stru

men

ts m

eas

ure

d a

t fa

ir v

alu

e a

t th

e e

nd

of

the

rep

ort

ing

perio

d, b

y th

e le

vel i

n t

he f

air

valu

e h

iera

rch

y in

to w

hic

h t

he f

air

valu

e m

eas

ure

men

t

is c

ateg

orise

d.

Fin

ancia

l in

stru

men

ts c

ateg

orise

d a

s cu

rren

t h

ave b

een

exc

lud

ed

as

their f

air

valu

es

app

roxi

mat

e c

arry

ing

val

ues

du

e t

o t

he s

ho

rt-t

erm

nat

ure

of

the a

ssets

.

No

tes

leve

l 1r

’00

0le

vel 2

r’0

00

leve

l 3r

’00

0to

tal

r’0

00

31

Au

gu

st 2

013

Loan

s an

d r

eceiv

able

s16

, 17

––

1 2

61

1 2

61

Ava

ilab

le-f

or-

sale

16–

––

–

Oth

er

inve

stm

en

ts16

3 5

77–

25

44

72

9 0

24

3 5

77–

26

70

83

0 2

85

31

Au

gu

st 2

012

Loan

s an

d r

eceiv

able

s16

, 17

––

2 2

39

2 2

39

Ava

ilab

le-f

or-

sale

166

4–

–6

4

Oth

er

inve

stm

en

ts16

148

–4

4 2

00

44

34

8

212

–4

6 4

39

46

65

1

T

he f

ollo

win

g t

able

sh

ow

s a

reco

ncili

atio

n f

rom

th

e b

eg

inn

ing

bal

ances

to t

he e

nd

ing

bal

ances

for

fair

val

ue m

eas

ure

men

ts in

Leve

l 3 o

f th

e f

air

valu

e h

iera

rch

y.

loan

s an

d

rece

ivab

les

r’0

00

oth

erin

vest

men

ts

r’0

00

tota

lr

’00

0

Bal

ance

31

Au

gu

st 2

011

2 5

54

40

20

04

2 7

54

Rep

aym

en

ts(3

15)

–(3

15)

Ad

just

men

t–

4 0

00

4 0

00

Bal

ance

31

Au

gu

st 2

012

2 2

39

44

20

04

6 4

39

Rep

aym

en

ts(1

60

)–

(16

0)

Ad

just

men

t(8

18)

(18

75

3)

(19

571

)

Bal

ance

31

Au

gu

st 2

013

1 2

61

25

44

72

6 7

08

3.

sig

nifi

can

t ac

cou

nti

ng

po

lici

es

T

he a

cco

un

ting

po

licie

s se

t ou

t belo

w h

ave b

een

ap

plie

d c

on

sist

en

tly

to a

ll p

eri

od

s p

rese

nte

d

in t

hese

co

nso

lidat

ed

fin

ancia

l st

atem

en

ts,

and

hav

e b

een

ap

plie

d c

on

sist

en

tly

by

Gro

up

en

titie

s.

B

asis

of

con

solid

atio

n

Su

bsi

dia

rie

s

Su

bsi

dia

ries

are e

ntit

ies

co

ntr

olle

d b

y th

e G

rou

p.

Co

ntr

ol

exi

sts

wh

en

th

e G

rou

p h

as t

he

po

wer

to g

ove

rn th

e fi

nan

cia

l an

d o

pera

ting

po

licie

s o

f an

en

tity

so a

s to

ob

tain

ben

efit

s fr

om

its a

ctiv

ities.

In

ass

ess

ing

co

ntr

ol,

po

ten

tial

votin

g r

igh

ts t

hat

cu

rren

tly

are e

xerc

isab

le a

re

take

n in

to a

cco

un

t. T

he fi

nan

cia

l sta

tem

en

ts o

f su

bsi

dia

ries

are in

clu

ded

in t

he c

on

solid

ated

finan

cia

l sta

tem

en

ts f

rom

th

e d

ate t

hat

co

ntr

ol c

om

men

ces

un

til t

he d

ate c

on

tro

l ceas

es.

Su

bsi

dia

ries

are s

ho

wn

at

co

st le

ss im

pai

rmen

ts in

th

e C

om

pan

y fin

ancia

l sta

tem

en

ts.

Tr

ansa

ctio

ns

wit

h a

sso

ciat

es

A

sso

cia

tes

are t

ho

se e

nte

rpri

ses

in w

hic

h t

he G

rou

p h

old

s a

lon

g-t

erm

eq

uity

in

tere

st a

nd

ove

r w

hic

h it

has

th

e a

bili

ty t

o e

xerc

ise s

ign

ifican

t in

fluen

ce, b

ut

no

t co

ntr

ol,

and

wh

ich

are

neith

er

sub

sid

iari

es

no

r jo

int

ven

ture

s.

NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

3.

sig

nifi

can

t ac

cou

nti

ng

po

lici

es

co

ntin

ued

B

asis

of

con

solid

atio

n c

on

tinu

ed

Tr

ansa

ctio

ns

wit

h a

sso

ciat

es

co

ntin

ued

A

sso

ciat

es

are c

arrie

d a

t fai

r va

lue th

rou

gh

pro

fit o

r lo

ss a

nd

are

incl

ud

ed

in “O

ther

inve

stm

en

ts”

in th

e s

tate

men

t of fi

nan

cial

po

sitio

n. A

sso

ciat

es

wh

ere

Pu

rple

Cap

ital a

cts

as a

ven

ture

cap

italis

t

are d

esi

gn

ated

at

acq

uis

itio

n t

o b

e t

reat

ed

in t

his

man

ner.

Tr

ansa

ctio

ns

elim

inat

ed

on

co

nso

lidat

ion

In

tra-

gro

up

bal

ances

and

tra

nsa

ctio

ns,

an

d a

ny

un

real

ised

inco

me a

nd

exp

en

ses

aris

ing

fro

m

intr

a-g

rou

p t

ran

sactio

ns,

are

elim

inat

ed

in p

rep

arin

g t

he c

on

solid

ated

fin

ancia

l sta

tem

en

ts.

B

usi

ne

ss c

om

bin

atio

ns

T

he G

rou

p a

cco

un

ts fo

r b

usi

ness

co

mb

inat

ion

s u

sin

g t

he a

cq

uis

itio

n m

eth

od

of

acco

un

ting

.

Th

e c

ost

of t

he b

usi

ness

co

mb

inat

ion

is m

eas

ure

d a

s th

e a

gg

reg

ate o

f th

e fa

ir v

alu

es

of a

ssets

giv

en

, lia

bili

ties

incu

rred

or

assu

med

an

d e

qu

ity in

stru

men

ts is

sued

. Co

sts

directly

attr

ibu

tab

le

to t

he b

usi

ness

co

mb

inat

ion

are

exp

en

sed

as

incu

rred

, exc

ep

t th

e c

ost

s to

issu

e d

eb

t w

hic

h

are a

mo

rtis

ed

as

par

t o

f th

e e

ffectiv

e in

tere

st a

nd

co

sts

to is

sue e

qu

ity w

hic

h a

re in

clu

ded

in

eq

uity

.

C

on

ting

en

t co

nsi

dera

tion

is

inclu

ded

in

th

e c

ost

of

the c

om

bin

atio

n a

t fa

ir v

alu

e a

s at

th

e

dat

e o

f ac

qu

isiti

on

. Su

bse

qu

en

t ch

ang

es

to t

he a

ssets

, lia

bili

ties

or

eq

uity

wh

ich

ari

se a

s a

resu

lt o

f th

e c

on

ting

en

t co

nsi

dera

tion

are

no

t eff

ecte

d a

gai

nst

go

od

will

, un

less

th

ey

are v

alid

meas

ure

men

t p

eri

od

ad

just

men

ts.

T

he a

cqu

iree’s

iden

tifiab

le a

ssets

, lia

bili

ties

and

co

ntin

gen

t lia

bili

ties

wh

ich

meet t

he re

cog

niti

on

con

diti

on

s o

f IF

RS

3 B

usi

ness

Co

mb

inat

ion

s ar

e r

eco

gn

ised

at

their

fair

valu

es

at a

cqu

isiti

on

dat

e.

Co

ntin

gen

t lia

bili

ties

are o

nly

in

clu

ded

in

th

e i

den

tifiab

le a

ssets

an

d l

iab

ilitie

s o

f th

e

acq

uire

e w

here

th

ere

is a

pre

sen

t o

blig

atio

n a

t ac

qu

isiti

on

dat

e.

O

n a

cq

uis

itio

n,

the G

rou

p a

ssess

es

the c

lass

ificat

ion

of

the a

cq

uiree’s

ass

ets

an

d l

iab

ilitie

s

and

recla

ssifi

es

them

wh

ere

th

e c

lass

ificat

ion

is

inap

pro

pri

ate f

or

Gro

up

pu

rpo

ses.

Th

is

exc

lud

es

leas

e a

gre

em

en

ts a

nd

insu

ran

ce c

on

trac

ts, w

ho

se c

lass

ificat

ion

rem

ain

s as

per

their

incep

tion

dat

e.

N

on

-co

ntr

olli

ng

in

tere

sts

aris

ing

fro

m a

bu

sin

ess

co

mb

inat

ion

are

meas

ure

d e

ither

at t

heir

shar

e o

f th

e fa

ir v

alu

e o

f th

e a

ssets

an

d li

abili

ties

of t

he a

cq

uiree o

r at

fair

val

ue. T

he tre

atm

en

t

is n

ot

an a

cco

un

ting

po

licy

ch

oic

e b

ut

is s

ele

cte

d f

or

eac

h in

div

idu

al b

usi

ness

co

mb

inat

ion

,

and

dis

clo

sed

in t

he n

ote

fo

r b

usi

ness

co

mb

inat

ion

s.

G

oo

dw

ill i

s d

ete

rmin

ed

as

the c

on

sid

era

tion

pai

d,

plu

s th

e f

air

valu

e o

f an

y sh

areh

old

ing

held

pri

or

to o

bta

inin

g c

on

tro

l, p

lus

no

n-c

on

tro

llin

g i

nte

rest

s an

d l

ess

th

e f

air

valu

e o

f th

e

iden

tifiab

le a

ssets

an

d li

abili

ties

of

the a

cq

uiree.

G

oo

dw

ill i

s n

ot

amo

rtis

ed

bu

t is

test

ed

on

an

an

nu

al b

asis

fo

r im

pai

rmen

t. I

f g

oo

dw

ill i

s

asse

ssed

to

be im

pai

red

, th

at im

pai

rmen

t is

no

t su

bse

qu

en

tly

reve

rsed

.

Fo

reig

n c

urr

en

cy

Fo

reig

n c

urr

en

cy t

ran

sact

ion

s

Tr

ansa

ctio

ns

in f

ore

ign

cu

rren

cie

s ar

e t

ran

slat

ed

to

th

e r

esp

ectiv

e f

un

ctio

nal

cu

rren

cie

s

of

Gro

up

en

titie

s at

exc

han

ge r

ates

at t

he d

ates

of

the t

ran

sactio

ns.

Mo

neta

ry a

ssets

an

d

liab

ilitie

s d

en

om

inat

ed

in

fo

reig

n c

urr

en

cie

s at

th

e r

ep

ort

ing

dat

e a

re t

ran

slat

ed

to

th

e

fun

ctio

nal

cu

rren

cy

at t

he e

xch

ang

e r

ate a

t th

at d

ate. F

ore

ign

cu

rren

cy

diff

ere

nces

aris

ing

on

tran

slat

ion

are

reco

gn

ised

in p

rofit

or

loss

.

Fo

reig

n o

pe

rati

on

s

T

he a

ssets

an

d li

abili

ties

of

fore

ign

op

era

tion

s, in

clu

din

g g

oo

dw

ill a

nd

fai

r va

lue a

dju

stm

en

ts

aris

ing

on

acq

uis

itio

n,

are t

ran

slat

ed

to

th

e f

un

ctio

nal

cu

rren

cy

at e

xch

ang

e r

ates

at t

he

rep

ort

ing

dat

e.

Th

e i

nco

me a

nd

exp

en

ses

of

fore

ign

op

era

tion

s ar

e t

ran

slat

ed

to

So

uth

Afr

ican

Ran

d a

t exc

han

ge r

ates

at t

he d

ates

of

the t

ran

sactio

ns.

Fo

reig

n

cu

rren

cy

diff

ere

nces

are

reco

gn

ised

in

o

ther

co

mp

reh

en

sive

in

co

me

and

ar

e

accu

mu

late

d w

ithin

eq

uity

in t

he f

ore

ign

cu

rren

cy

tran

slat

ion

rese

rve (F

CT

R).

Wh

en

a f

ore

ign

op

era

tion

is

dis

po

sed

of,

in p

art

or

in f

ull,

th

e r

ele

van

t am

ou

nt

in t

he F

CT

R is

tran

sferr

ed

to

pro

fit o

r lo

ss.

Fi

nan

cial

inst

rum

en

ts

N

on

-de

riva

tive

fin

anci

al in

stru

me

nts

N

on

-deri

vativ

e fi

nan

cia

l in

stru

men

ts c

om

pri

se i

nve

stm

en

ts i

n e

qu

ity a

nd

deb

t se

cu

ritie

s,

trad

e a

nd

oth

er

receiv

able

s, c

ash

an

d c

ash

eq

uiv

alen

ts, l

oan

s an

d b

orr

ow

ing

s, a

nd

tra

de a

nd

oth

er

pay

able

s.

N

on

-deri

vativ

e fi

nan

cia

l in

stru

men

ts a

re r

eco

gn

ised

initi

ally

at

fair

val

ue p

lus,

fo

r in

stru

men

ts

no

t at

fai

r va

lue t

hro

ug

h p

rofit

or

loss

, an

y d

irectly

attr

ibu

tab

le t

ran

sactio

n c

ost

s. S

ub

seq

uen

t

to in

itial

reco

gn

itio

n n

on

-deri

vativ

e fi

nan

cia

l in

stru

men

ts a

re m

eas

ure

d a

s d

esc

rib

ed

belo

w.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

3.

sig

nifi

can

t ac

cou

nti

ng

po

lici

es

co

ntin

ued

Fi

nan

cial

inst

rum

en

ts c

on

tinu

ed

N

on

-de

riva

tive

fin

anci

al in

stru

me

nts

co

ntin

ued

T

he G

rou

p d

ere

co

gn

ises

a fin

ancia

l ass

et

wh

en

th

e c

on

trac

tual

rig

hts

to

th

e c

ash

flo

ws

fro

m

the a

sset exp

ire, o

r it

tran

sfers

th

e r

igh

ts to

receiv

e th

e c

on

trac

tual

cas

h fl

ow

s o

n th

e fi

nan

cia

l as

set

in a

tra

nsa

ctio

n i

n w

hic

h s

ub

stan

tially

all

the r

isks

an

d r

ew

ard

s o

f o

wn

ers

hip

of

the

finan

cia

l as

set

are t

ran

sferr

ed

. A

ny

inte

rest

in

tra

nsf

err

ed

fin

ancia

l as

sets

th

at i

s cre

ated

or

reta

ined

by

the G

rou

p is

reco

gn

ised

as

a se

par

ate a

sset

or

liab

ility

. Th

e G

rou

p d

ere

co

gn

ises

a fin

ancia

l lia

bili

ty w

hen

its

co

ntr

actu

al o

blig

atio

ns

are d

isch

arg

ed

or

can

celle

d o

r exp

ire.

C

ash

an

d c

ash

eq

uiv

alen

ts c

om

pri

se c

ash

bal

ances

and

cal

l d

ep

osi

ts.

Ban

k o

verd

raft

s th

at

are r

ep

ayab

le o

n d

em

and

an

d f

orm

an

in

teg

ral

par

t o

f th

e G

rou

p’s

cas

h m

anag

em

en

t ar

e

inclu

ded

as

a co

mp

on

en

t o

f cas

h a

nd

cas

h e

qu

ival

en

ts f

or

the p

urp

ose

of

the s

tate

men

t o

f cas

h fl

ow

s.

A

vaila

ble

-fo

r-sa

le fi

nan

cial

ass

ets

T

he G

rou

p’s

inve

stm

en

ts in

cert

ain

eq

uity

secu

ritie

s ar

e c

lass

ified

as

avai

lab

le-f

or-

sale

fin

ancia

l as

sets

wh

ere

rele

van

t. S

ub

seq

uen

t to

initi

al r

eco

gn

itio

n, th

ey

are m

eas

ure

d a

t fa

ir v

alu

e a

nd

ch

ang

es

there

in a

re r

eco

gn

ised

in o

ther

co

mp

reh

en

sive

inco

me a

nd

pre

sen

ted

with

in e

qu

ity

in t

he a

vaila

ble

-fo

r-sa

le r

ese

rve. W

hen

an

inve

stm

en

t is

dere

co

gn

ised

, th

e c

um

ula

tive g

ain

or

loss

in e

qu

ity is

tra

nsf

err

ed

to

pro

fit o

r lo

ss.

Fi

nan

cial

inst

rum

ents

at

fair

val

ue

thro

ug

h p

rofi

t o

r lo

ss

A

n i

nst

rum

en

t is

cla

ssifi

ed

at

fair

val

ue t

hro

ug

h p

rofit

or

loss

if

it is

held

fo

r tr

adin

g o

r is

d

esi

gn

ated

as

such

up

on

initi

al r

eco

gn

itio

n. F

inan

cia

l in

stru

men

ts a

re d

esi

gn

ated

at

fair

val

ue

thro

ug

h p

rofit

or

loss

if t

he G

rou

p m

anag

es

such

inve

stm

en

ts a

nd

mak

es

pu

rch

ase a

nd

sal

e

decis

ion

s b

ased

on

th

eir

fai

r va

lue in

acco

rdan

ce w

ith t

he G

rou

p’s

inve

stm

en

t st

rate

gy.

Up

on

in

itial

reco

gn

itio

n t

he a

ttri

bu

tab

le t

ran

sactio

n c

ost

s ar

e r

eco

gn

ised

in

pro

fit o

r lo

ss w

hen

in

cu

rred

. Fin

ancia

l in

stru

men

ts a

t fa

ir v

alu

e t

hro

ug

h p

rofit

or

loss

are

meas

ure

d a

t fa

ir v

alu

e,

and

ch

ang

es

there

in a

re r

eco

gn

ised

in p

rofit

or

loss

.

O

ther

O

ther

no

n-d

eri

vativ

e fi

nan

cia

l ass

ets

inclu

de t

rad

e a

nd

oth

er

receiv

able

s an

d d

ep

osi

ts.

T

hese

fin

ancia

l as

sets

are

cla

ssifi

ed

as

loan

s an

d r

eceiv

able

s m

eas

ure

d a

t am

ort

ised

co

st

usi

ng

the e

ffectiv

e in

tere

st m

eth

od

, less

an

y im

pai

rmen

t lo

sses.

Oth

er

no

n-d

eri

vativ

e fi

nan

cia

l

liab

ilitie

s in

clu

de l

oan

s an

d b

orr

ow

ing

s, c

lien

t fu

nd

s o

n c

all,

cas

h a

nd

cas

h e

qu

ival

en

ts a

nd

trad

e a

nd

oth

er

pay

able

s. T

hese

fin

ancia

l lia

bili

ties

are m

eas

ure

d a

t am

ort

ised

co

st u

sin

g t

he

eff

ectiv

e in

tere

st m

eth

od

.

D

eri

vati

ve fi

nan

cial

inst

rum

en

ts

D

eri

vativ

es

are

reco

gn

ised

in

itial

ly

at

fair

va

lue

and

at

trib

uta

ble

tr

ansa

ctio

n

co

sts

are

reco

gn

ised

in

pro

fit o

r lo

ss w

hen

in

cu

rred

. Su

bse

qu

en

t to

in

itial

reco

gn

itio

n,

deri

vativ

es

are

meas

ure

d a

t fa

ir v

alu

e, a

nd

ch

ang

es

there

in a

re a

cco

un

ted

fo

r as

desc

rib

ed

belo

w.

Tr

adin

g in

stru

me

nts

D

eri

vativ

e fi

nan

cia

l in

stru

men

ts c

om

pri

se s

pre

ad t

rad

ing

an

d c

on

trac

ts f

or

diff

ere

nce (

CFD

s)

on

fixe

d in

co

me, e

qu

ity, c

om

mo

dity

an

d c

urr

en

cy

mar

kets

.

Tr

adin

g i

nst

rum

en

ts a

re c

lass

ified

as

held

fo

r tr

adin

g a

nd

are

meas

ure

d a

t fa

ir v

alu

e a

t th

e

rep

ort

ing

dat

e. Fa

ir v

alu

e is

bas

ed

on

mar

ket

pri

ces,

hav

ing

reg

ard

to

liq

uid

ity a

nd

an

y o

ther

specia

l fa

cto

rs r

ela

ting

to

th

e p

osi

tion

. R

eal

ised

an

d u

nre

alis

ed

ch

ang

es

in f

air

valu

e a

re

reco

gn

ised

in p

rofit

or

loss

as

par

t o

f re

ven

ue.

Sh

are

cap

ital

O

rdin

ary

shar

es

O

rdin

ary

shar

es

are c

lass

ified

as

eq

uity

. In

cre

men

tal c

ost

s d

irectly

attr

ibu

tab

le t

o t

he is

sue o

f

ord

inar

y sh

ares

and

sh

are o

ptio

ns

are r

eco

gn

ised

as

a d

ed

uctio

n f

rom

eq

uity

, net

of

any

tax

eff

ects

.

R

epu

rch

ase

of

shar

e c

apit

al (

tre

asu

ry s

har

es)

Tr

eas

ury

sh

ares

aris

e

on

co

nso

lidat

ion

w

here

a

sub

sid

iary

h

old

s sh

ares

in

the

ho

ldin

g

co

mp

any.

Th

ese

are

ded

ucte

d f

rom

eq

uity

.

E

qu

ipm

en

t

R

eco

gn

itio

n a

nd

me

asu

rem

en

t

E

qu

ipm

en

t is

sta

ted

at

co

st l

ess

accu

mu

late

d d

ep

recia

tion

an

d a

ccu

mu

late

d i

mp

airm

en

t

loss

es.

C

ost

inclu

des

exp

en

ditu

re th

at is

directly

attr

ibu

tab

le to

the a

cq

uis

itio

n o

f th

e a

sset. P

urc

has

ed

soft

war

e t

hat

is in

teg

ral t

o t

he f

un

ctio

nal

ity o

f th

e r

ela

ted

eq

uip

men

t is

cap

italis

ed

as

par

t o

f

that

eq

uip

men

t.

W

here

co

mp

on

en

ts o

f eq

uip

men

t h

ave d

iffere

nt

use

ful

lives,

th

ey

are a

cco

un

ted

fo

r as

se

par

ate a

ssets

.

G

ain

s an

d l

oss

es

on

dis

po

sal

of

an i

tem

of

eq

uip

men

t ar

e d

ete

rmin

ed

by

co

mp

arin

g t

he

pro

ceed

s fr

om

dis

po

sal

with

th

e c

arry

ing

am

ou

nt

of

eq

uip

men

t, a

nd

are

reco

gn

ised

net

with

in “

Oth

er

inco

me”

in p

rofit

or

loss

.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

3.

sig

nifi

can

t ac

cou

nti

ng

po

lici

es

co

ntin

ued

E

qu

ipm

en

t co

ntin

ued

Su

bse

qu

en

t co

sts

T

he c

ost

of

rep

lacin

g p

art

of

an it

em

of

eq

uip

men

t is

reco

gn

ised

in t

he c

arry

ing

am

ou

nt

of

the it

em

if it

is p

rob

able

th

at t

he f

utu

re e

co

no

mic

ben

efit

s em

bo

die

d w

ithin

th

e p

art

will

flo

w

to th

e G

rou

p a

nd

its

co

st c

an b

e m

eas

ure

d r

elia

bly

. Th

e c

arry

ing

am

ou

nt o

f th

e r

ep

laced

item

is d

ere

co

gn

ised

. Th

e c

ost

s o

f th

e d

ay-t

o-d

ay s

erv

icin

g o

f eq

uip

men

t ar

e r

eco

gn

ised

in p

rofit

or

loss

as

incu

rred

.

D

ep

reci

atio

n

D

ep

recia

tion

is r

eco

gn

ised

in p

rofit

or

loss

on

a s

trai

gh

t-lin

e b

asis

, to

th

eir

resi

du

al v

alu

e,o

ver

the e

stim

ated

use

ful

life o

f eac

h a

sset. T

he e

stim

ated

use

ful

lives

for

the c

urr

en

t an

d

co

mp

arat

ive p

eri

od

s ar

e a

s fo

llow

s:

C

om

pu

ter

eq

uip

men

t

3 y

ear

s

P

urc

has

ed

so

ftw

are

3 y

ear

s

Fi

xtu

res

and

fitt

ing

s

6 y

ear

s

O

ffice e

qu

ipm

en

t

5 y

ear

s

Le

aseh

old

imp

rove

men

ts

6 y

ear

s

D

ep

recia

tion

meth

od

s, u

sefu

l liv

es

and

resi

du

al v

alu

e a

re r

evi

ew

ed

at

eac

h r

ep

ort

ing

dat

e.

In

tan

gib

le a

sse

ts

G

oo

dw

ill

G

oo

dw

ill t

hat

ari

ses

up

on

th

e a

cq

uis

itio

n o

f su

bsi

dia

ries

is in

clu

ded

in in

tan

gib

le a

ssets

.

G

oo

dw

ill is

meas

ure

d a

t co

st le

ss a

ccu

mu

late

d im

pai

rmen

t lo

sses.

G

oo

dw

ill h

as a

n in

defin

ite u

sefu

l life

.

R

ese

arch

an

d d

eve

lop

me

nt

E

xpen

ditu

re o

n r

ese

arch

activ

ities,

un

dert

aken

with

th

e p

rosp

ect

of

gai

nin

g n

ew

tech

nic

al

kno

wle

dg

e a

nd

un

ders

tan

din

g, i

s re

co

gn

ised

in p

rofit

or

loss

wh

en

incu

rred

.

D

eve

lop

me

nt

activ

itie

s (s

pe

cific

ally

so

ftw

are d

eve

lop

me

nt)

in

volv

e a

pla

n o

r d

esi

gn

fo

r

the p

rod

uc

tion

of

new

or

sub

stan

tially

im

pro

ved

pro

du

cts

an

d p

roce

sse

s. D

eve

lop

me

nt

exp

en

ditu

re i

s c

apita

lise

d o

nly

if

deve

lop

me

nt

cost

s c

an b

e m

eas

ure

d r

elia

bly

, th

e p

rod

uc

t

or

pro

cess

is t

ech

nic

ally

an

d c

om

me

rcia

lly f

eas

ible

, fu

ture

eco

no

mic

be

nefit

s ar

e p

rob

able

,

and

th

e G

rou

p in

ten

ds

to a

nd

has

su

ffici

en

t re

sou

rce

s to

co

mp

lete

deve

lop

me

nt

and

to

use

or

sell

the a

sset. T

he e

xpe

nd

iture

cap

italis

ed

inclu

de

s th

e c

ost

of

mat

eri

als

and

dire

ct

lab

ou

r

that

are

dire

ctly

att

rib

uta

ble

to

pre

par

ing

th

e a

sset

for

its

inte

nd

ed

use

. O

the

r d

eve

lop

me

nt

exp

en

ditu

re is

re

cog

nis

ed

in p

rofit

or

loss

as

incu

rre

d. C

apita

lise

d d

eve

lop

me

nt

exp

en

ditu

re

is m

eas

ure

d a

t co

st le

ss a

ccu

mu

late

d a

mo

rtis

atio

n a

nd

acc

um

ula

ted

imp

airm

en

t lo

sse

s.

O

the

r in

tan

gib

le a

sse

ts

O

ther

inta

ng

ible

ass

ets

th

at a

re a

cq

uired

by

the G

rou

p,

wh

ich

hav

e fi

nite

use

ful

lives,

are

m

eas

ure

d a

t co

st le

ss a

ccu

mu

late

d a

mo

rtis

atio

n a

nd

accu

mu

late

d im

pai

rmen

t lo

sses.

Su

bse

qu

en

t e

xpe

nd

itu

re

Su

bse

qu

en

t exp

en

ditu

re i

s cap

italis

ed

on

ly w

hen

it

incre

ases

the f

utu

re e

co

no

mic

ben

efit

s em

bo

die

d in

the s

pecifi

c a

sset t

o w

hic

h it

rela

tes.

All

oth

er

exp

en

ditu

re, i

nclu

din

g e

xpen

ditu

re

on

inte

rnal

ly g

en

era

ted

go

od

will

an

d b

ran

ds,

is r

eco

gn

ised

in p

rofit

or

loss

as

incu

rred

.

A

mo

rtis

atio

n

A

mo

rtis

atio

n is

reco

gn

ised

in p

rofit

or

loss

on

a s

trai

gh

t-lin

e b

asis

, to

their

resi

du

al v

alu

es,

ove

r th

e e

stim

ated

use

ful l

ives

of i

nta

ng

ible

ass

ets

, oth

er

than

go

od

will

, fro

m th

e d

ate th

at th

ey

are

avai

lab

le f

or

use

.

T

he e

stim

ated

use

ful l

ives

for

the c

urr

en

t an

d c

om

par

ativ

e p

eri

od

s ar

e a

s fo

llow

s:

C

apita

lised

so

ftw

are d

eve

lop

men

t co

sts

3

year

s

C

ust

om

er

rela

tion

ship

s

5 –

7 y

ear

s

Tr

adem

arks

/bra

nd

s

5 –

7 y

ear

s

W

ork

forc

e

5 y

ear

s

T

he a

mo

rtis

atio

n m

eth

od

s, u

sefu

l liv

es

and

resi

du

al v

alu

es

are r

evi

ew

ed

at

eac

h r

ep

ort

ing

p

eri

od

an

d a

dju

sted

if a

pp

rop

riat

e.

Im

pai

rme

nt

Fi

nan

cial

ass

ets

A

fin

ancia

l as

set

(th

at i

s n

ot

meas

ure

d a

t fa

ir v

alu

e t

hro

ug

h p

rofit

an

d l

oss

) is

ass

ess

ed

at

eac

h r

ep

ort

ing

dat

e t

o d

ete

rmin

e w

heth

er

there

is a

ny

ob

jectiv

e e

vid

en

ce t

hat

it is

imp

aire

d.

A fi

nan

cia

l ass

et is

co

nsi

dere

d t

o b

e im

pai

red

if o

bje

ctiv

e e

vid

en

ce in

dic

ates

that

on

e o

r m

ore

eve

nts

hav

e h

ad a

neg

ativ

e e

ffect

on

th

e e

stim

ated

fu

ture

cas

h fl

ow

s o

f th

at a

sset.

A

n im

pai

rmen

t lo

ss in

resp

ect

of

a fin

ancia

l ass

et

meas

ure

d a

t am

ort

ised

co

st is

cal

cu

late

d a

s th

e d

iffere

nce b

etw

een

its

car

ryin

g a

mo

un

t an

d th

e p

rese

nt v

alu

e o

f th

e e

stim

ated

futu

re c

ash

flo

ws

dis

co

un

ted

at

the o

rig

inal

eff

ectiv

e in

tere

st r

ate. F

or

inve

stm

en

ts in

eq

uity

inst

rum

en

ts,

a si

gn

ifican

t o

r p

rolo

ng

ed

declin

e i

n i

ts f

air

valu

e b

elo

w i

ts c

ost

is

ob

jectiv

e e

vid

en

ce o

f im

pai

rmen

t.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

3.

sig

nifi

can

t ac

cou

nti

ng

po

lici

es

co

ntin

ued

Im

pai

rme

nt

co

ntin

ued

Fi

nan

cial

ass

ets

co

ntin

ued

In

div

idu

ally

sig

nifi

can

t fin

ancia

l as

sets

are

test

ed

fo

r im

pai

rmen

t o

n a

n i

nd

ivid

ual

bas

is.

All

imp

airm

en

t lo

sses

are r

eco

gn

ised

in p

rofit

or

loss

.

A

n im

pai

rmen

t lo

ss is

reve

rsed

if t

he r

eve

rsal

can

be r

ela

ted

ob

jectiv

ely

to

an

eve

nt

occu

rrin

g

afte

r th

e i

mp

airm

en

t lo

ss w

as r

eco

gn

ised

. Fo

r fin

ancia

l as

sets

meas

ure

d a

t am

ort

ised

co

st,

the r

eve

rsal

is r

eco

gn

ised

in p

rofit

or

loss

. Fo

r av

aila

ble

-fo

r-sa

le fi

nan

cia

l ass

ets

th

at a

re e

qu

ity

secu

ritie

s, t

he r

eve

rsal

is r

eco

gn

ised

in o

ther

co

mp

reh

en

sive

inco

me.

N

on

-fin

anci

al a

sse

ts

T

he c

arry

ing

am

ou

nts

of

the G

rou

p’s

no

n-fi

nan

cia

l ass

ets

, oth

er

than

defe

rred

tax

ass

ets

, are

revi

ew

ed

at e

ach

rep

ort

ing

dat

e to

dete

rmin

e w

heth

er th

ere

is a

ny

ind

icat

ion

of i

mp

airm

en

t. If

any

such

ind

icat

ion

exi

sts

then

th

e a

sset’s

reco

vera

ble

am

ou

nt

is e

stim

ated

. Fo

r g

oo

dw

ill a

nd

inta

ng

ible

ass

ets

th

at h

ave in

defin

ite li

ves

or

that

are

no

t ye

t av

aila

ble

fo

r u

se, t

he r

eco

vera

ble

amo

un

t is

est

imat

ed

at

eac

h r

ep

ort

ing

dat

e.

T

he r

eco

vera

ble

am

ou

nt

of

an a

sset

or

cas

h-g

en

era

ting

un

it is

th

e g

reat

er

of

its v

alu

e in

use

and

its

fair

val

ue le

ss c

ost

s to

sell.

In

ass

ess

ing

val

ue in

use

, th

e e

stim

ated

fu

ture

cas

h fl

ow

s

are d

isco

un

ted

to

th

eir

pre

sen

t va

lue u

sin

g a

pre

-tax

dis

co

un

t ra

te th

at r

efle

cts

cu

rren

t m

arke

t

asse

ssm

en

ts o

f th

e t

ime v

alu

e o

f m

on

ey

and

th

e r

isks

sp

ecifi

c t

o t

he a

sset. F

or

the p

urp

ose

of

imp

airm

en

t te

stin

g,

asse

ts a

re g

rou

ped

to

geth

er

into

th

e s

mal

lest

gro

up

of

asse

ts t

hat

gen

era

te c

ash

inflo

ws

fro

m c

on

tinu

ing

use

th

at a

re la

rgely

ind

ep

en

den

t o

f th

e c

ash

inflo

ws

of

oth

er

asse

ts o

r g

rou

ps

of

asse

ts (

the c

ash

-gen

era

ting

un

it).

Th

e g

oo

dw

ill a

cq

uired

in

a

bu

sin

ess

co

mb

inat

ion

, fo

r th

e p

urp

ose

of

imp

airm

en

t te

stin

g, i

s al

locat

ed

to

cas

h-g

en

era

ting

un

its t

hat

are

exp

ecte

d t

o b

en

efit

fro

m t

he s

ynerg

ies

of

the c

om

bin

atio

n.

A

n i

mp

airm

en

t lo

ss i

s re

co

gn

ised

if

the c

arry

ing

am

ou

nt

of

an a

sset

or

its c

ash

-gen

era

ting

un

it exc

eed

s its

reco

vera

ble

am

ou

nt. Im

pai

rmen

t lo

sses

are r

eco

gn

ised

in p

rofit

or

loss

.

Im

pai

rmen

t lo

sses

reco

gn

ised

in r

esp

ect o

f cas

h-g

en

era

ting

un

its a

re a

llocat

ed

firs

t to

red

uce

the c

arry

ing

am

ou

nt

of

any

go

od

will

allo

cat

ed

to

th

e u

nits

an

d t

hen

to

red

uce t

he c

arry

ing

amo

un

t o

f th

e o

ther

asse

ts in

th

e u

nit

(gro

up

of

un

its)

on

a p

ro r

ata

bas

is.

A

n im

pai

rmen

t lo

ss in

re

spect

of

go

od

will

is

n

ot

reve

rsed

. In

re

spect

of

oth

er

asse

ts,

imp

airm

en

t lo

sses

reco

gn

ised

in

pri

or

peri

od

s ar

e a

ssess

ed

at

eac

h r

ep

ort

ing

dat

e f

or

any

ind

icat

ion

s th

at t

he lo

ss h

as d

ecre

ased

or

no

lon

ger

exi

sts.

An

imp

airm

en

t lo

ss is

reve

rsed

if

there

has

been

a c

han

ge in

th

e e

stim

ates

use

d t

o d

ete

rmin

e t

he r

eco

vera

ble

am

ou

nt.

A

n i

mp

airm

en

t lo

ss i

s re

vers

ed

on

ly t

o t

he e

xten

t th

at t

he a

sset’s

car

ryin

g a

mo

un

t d

oes

no

t exc

eed

th

e c

arry

ing

am

ou

nt

that

wo

uld

hav

e b

een

dete

rmin

ed

, n

et

of

dep

recia

tion

or

amo

rtis

atio

n, i

f n

o im

pai

rmen

t lo

ss h

ad b

een

reco

gn

ised

.

E

mp

loye

e b

en

efi

ts

Sh

ort

-te

rm b

en

efi

ts

Sh

ort

-term

em

plo

yee b

en

efit

s ar

e m

eas

ure

d o

n a

n u

nd

isco

un

ted

bas

is a

nd

are

exp

en

sed

as

the r

ela

ted

serv

ice is

pro

vid

ed

.

A

lia

bili

ty i

s re

co

gn

ised

fo

r th

e a

mo

un

t exp

ecte

d t

o b

e p

aid

un

der

sho

rt-t

erm

cas

h b

on

us

or

pro

fit-s

har

ing

pla

ns

if th

e G

rou

p h

as a

pre

sen

t le

gal

or

co

nst

ructiv

e o

blig

atio

n t

o p

ay t

his

amo

un

t as

a r

esu

lt o

f p

ast

serv

ice p

rovi

ded

by

the e

mp

loye

e a

nd

th

e o

blig

atio

n c

an b

e

est

imat

ed

relia

bly

.

Sh

are

-bas

ed

pay

me

nt

tran

sact

ion

s

T

he s

har

e o

ptio

n p

rog

ram

me a

llow

s se

lect

ed

Gro

up

em

plo

yees

to a

cqu

ire s

har

es

of

the

Gro

up

. Th

e g

ran

t dat

e fa

ir va

lue o

f op

tion

s g

ran

ted

to e

mp

loye

es

is reco

gn

ised

as

an e

mp

loye

e

exp

en

se, w

ith a

co

rresp

on

din

g in

creas

e in

eq

uity

, ove

r th

e p

erio

d t

hat

th

e e

mp

loye

es

beco

me

un

con

diti

on

ally

en

title

d t

o t

he o

ptio

ns.

Th

e f

air

valu

e o

f th

e o

ptio

ns

gra

nte

d is

meas

ure

d u

sin

g

a m

od

ified

bin

om

ial l

attic

e m

od

el,

taki

ng

into

acc

ou

nt

the t

erm

s an

d c

on

diti

on

s u

po

n w

hic

h

the o

ptio

ns

were

gra

nte

d.

Th

e a

mo

un

t re

cog

nis

ed

as

an e

xpen

se i

s ad

just

ed

to

refle

ct t

he

actu

al n

um

ber

of s

har

e o

ptio

ns

that

vest

exc

ep

t w

here

forf

eitu

re is

on

ly d

ue to

sh

are p

rices

no

t

ach

ievi

ng

th

e t

hre

sho

ld f

or

vest

ing

.

P

rovi

sio

ns

A

pro

visi

on

is

reco

gn

ised

if,

as a

resu

lt o

f a

pas

t eve

nt,

th

e G

rou

p h

as a

pre

sen

t le

gal

or

co

nst

ructiv

e o

blig

atio

n t

hat

can

be e

stim

ated

relia

bly

, an

d i

t is

pro

bab

le t

hat

an

ou

tflo

w o

f

eco

no

mic

ben

efit

s w

ill b

e r

eq

uired

to

sett

le t

he o

blig

atio

n.

Pro

visi

on

s ar

e d

ete

rmin

ed

by

dis

co

un

ting

th

e e

xpecte

d f

utu

re c

ash

flo

ws

at a

pre

-tax

rat

e t

hat

refle

cts

cu

rren

t m

arke

t

asse

ssm

en

ts o

f th

e t

ime v

alu

e o

f th

e m

on

ey

and

th

e r

isks

sp

ecifi

c t

o t

he li

abili

ty.

R

eve

nu

e

Se

rvic

es

ren

de

red

R

eve

nu

e f

rom

serv

ices

ren

dere

d i

s re

co

gn

ised

in

pro

fit o

r lo

ss a

t th

e d

ates

serv

ices

are

ren

dere

d,

net

of

valu

e a

dd

ed

tax

atio

n.

No

reve

nu

e i

s re

co

gn

ised

if

there

are

sig

nifi

can

t

un

cert

ain

ties

reg

ard

ing

reco

very

of

the c

on

sid

era

tion

du

e o

r as

socia

ted

co

sts.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

3.

sig

nifi

can

t ac

cou

nti

ng

po

lici

es

co

ntin

ued

R

eve

nu

e c

on

tinu

ed

Tr

adin

g in

com

e

Tr

adin

g in

co

me c

on

sist

s o

f th

e real

ised

an

d u

nre

alis

ed

pro

fit o

r lo

ss w

ith resp

ect t

o th

e G

rou

p

actin

g a

s th

e c

ou

nte

rpar

ty t

o c

lien

t tr

ansa

ctio

ns,

an

d t

he r

eal

ised

an

d u

nre

alis

ed

pro

fit o

r lo

ss

on

th

e G

rou

p’s

hed

gin

g tra

nsa

ctio

ns.

Th

ese

are

ch

arg

ed

to

pro

fit o

r lo

ss. A

ll co

un

terp

arty

an

d

hed

gin

g p

osi

tion

s o

pen

at y

ear

en

d a

re m

eas

ure

d a

t fai

r va

lue a

nd

an

y ch

ang

es

take

n to

pro

fit

or

loss

.

Tr

adin

g in

co

me a

lso

co

nsi

sts

of

the n

et

gai

n a

nd

loss

es

fro

m b

ett

ing

activ

ities.

R

eve

nu

e is

reco

gn

ised

to

th

e e

xten

t th

at it

is p

rob

able

th

at t

he e

co

no

mic

ben

efit

s w

ill fl

ow

to

the C

om

pan

y an

d t

he r

eve

nu

e c

an b

e m

eas

ure

d r

elia

bly

. Vat

levi

ed

on

gro

ss g

amin

g r

eve

nu

e

is in

clu

ded

in r

eve

nu

e a

s th

is is

bo

rne b

y th

e C

om

pan

y an

d n

ot

the c

ust

om

er.

M

anag

em

en

t fe

es

M

anag

em

en

t fe

es

are r

eco

gn

ised

as

and

wh

en

serv

ices

are r

en

dere

d.

O

the

r in

com

e

O

ther

inco

me i

nclu

des

un

real

ised

gai

ns

and

lo

sses

aris

ing

fro

m f

air

valu

e a

dju

stm

en

ts t

o

oth

er in

vest

men

ts, p

rofit

or lo

ss o

n s

ale o

f in

vest

men

ts a

nd

pro

fit o

r lo

ss o

n fo

reig

n e

xch

ang

e.

Fore

ign

cu

rren

cy

gai

ns

and

loss

es

are r

ep

ort

ed

on

a n

et

bas

is.

Le

ase

pay

me

nts

P

aym

en

ts m

ade u

nd

er

op

era

ting

leas

es

are r

eco

gn

ised

in p

rofit

or

loss

on

a s

trai

gh

t-lin

e b

asis

ove

r th

e t

erm

of

the le

ase.

In

tere

st in

com

e a

nd

exp

en

ses

In

tere

st i

nco

me c

om

pri

ses

inco

me o

n f

un

ds

inve

sted

. In

tere

st i

nco

me i

s re

co

gn

ised

as

it

accru

es

in p

rofit

or

loss

, usi

ng

th

e e

ffectiv

e in

tere

st m

eth

od

.

In

tere

st

exp

en

ses

co

mp

rise

in

tere

st

exp

en

se

on

b

orr

ow

ing

s.

All

bo

rro

win

g

co

sts

are

reco

gn

ised

in p

rofit

or

loss

usi

ng

th

e e

ffectiv

e in

tere

st m

eth

od

.

In

com

e t

ax

In

co

me t

ax e

xpen

se c

om

pri

ses

cu

rren

t an

d d

efe

rred

tax

. In

co

me t

ax e

xpen

se is

reco

gn

ised

in t

he p

rofit

or

loss

exc

ep

t to

th

e e

xten

t th

at it

rela

tes

to it

em

s re

co

gn

ised

directly

in e

qu

ity o

r

oth

er

co

mp

reh

en

sive

inco

me.

C

urr

en

t ta

x is

th

e e

xpecte

d t

ax p

ayab

le o

n t

he e

stim

ated

tax

able

inco

me f

or

the y

ear

, u

sin

g

tax

rate

s en

acte

d o

r su

bst

antiv

ely

en

acte

d a

t th

e r

ep

ort

ing

dat

e,

and

an

y ad

just

men

t to

tax

pay

able

in r

esp

ect

of

pre

vio

us

year

s.

D

efe

rred

tax

is p

rovi

ded

usi

ng

the li

abili

ty m

eth

od

, pro

vid

ing

for te

mp

ora

ry d

iffere

nce

s b

etw

een

the c

arry

ing

am

ou

nts

of

asse

ts a

nd

liab

ilitie

s fo

r fin

anci

al r

ep

ort

ing

pu

rpo

ses

and

th

e a

mo

un

ts

use

d

for

taxa

tion

p

urp

ose

s.

Defe

rred

ta

x is

n

ot

reco

gn

ised

fo

r th

e

follo

win

g

tem

po

rary

diff

ere

nce

s: t

he in

itial

reco

gn

itio

n o

f as

sets

or

liab

ilitie

s in

a t

ran

sact

ion

th

at is

no

t a

bu

sin

ess

com

bin

atio

n a

nd

th

at a

ffect

s n

eith

er

acco

un

ting

no

r ta

xab

le p

rofit

or

loss

, an

d d

iffere

nce

s

rela

ting

to in

vest

men

ts in

su

bsi

dia

ries

and

join

tly c

on

tro

lled

en

titie

s to

the e

xten

t th

at it

is p

rob

able

that

th

ey

will

no

t re

vers

e in

th

e f

ore

seeab

le f

utu

re. In

ad

diti

on

, d

efe

rred

tax

is n

ot

reco

gn

ised

for

taxa

ble

tem

po

rary

diff

ere

nce

s ar

isin

g o

n t

he in

itial

reco

gn

itio

n o

f g

oo

dw

ill. D

efe

rred

tax

is

meas

ure

d a

t th

e t

ax r

ates

that

are

exp

ect

ed

to

be a

pp

lied

to

tem

po

rary

diff

ere

nce

s w

hen

th

ey

reve

rse,

bas

ed

on

th

e law

s th

at h

ave b

een

en

acte

d o

r su

bst

antiv

ely

en

acte

d b

y th

e r

ep

ort

ing

dat

e. D

efe

rred

tax

ass

ets

an

d li

abili

ties

are o

ffse

t if

there

is a

leg

ally

en

forc

eab

le r

igh

t to

off

set

tax

liab

ilitie

s an

d a

ssets

an

d t

hey

rela

te t

o in

com

e t

axes

levi

ed

by

the s

ame t

ax a

uth

orit

y o

n t

he

sam

e t

axab

le e

ntit

y.

A

defe

rred

tax

asse

t is

reco

gn

ised

to th

e e

xten

t th

at it

is p

rob

able

that

futu

re ta

xab

le p

rofit

s w

ill

be a

vaila

ble

ag

ain

st w

hic

h t

he t

em

po

rary

diff

ere

nce c

an b

e u

tilis

ed

. D

efe

rred

tax

ass

ets

are

revi

ew

ed

at

eac

h r

ep

ort

ing

dat

e a

nd

are

red

uced

to

th

e e

xten

t th

at it

is n

o lo

ng

er

pro

bab

le

that

th

e r

ela

ted

tax

ben

efit

will

be r

eal

ised

.

E

arn

ing

s p

er

shar

e

T

he G

rou

p p

rese

nts

bas

ic a

nd

dilu

ted

ear

nin

gs

per

shar

e (

EP

S) d

ata

for

its o

rdin

ary

shar

es.

Bas

ic E

PS

is c

alcu

late

d b

y d

ivid

ing

th

e p

rofit

or

loss

att

rib

uta

ble

to

ord

inar

y sh

areh

old

ers

of

the G

rou

p b

y th

e w

eig

hte

d a

vera

ge n

um

ber

of o

rdin

ary

shar

es

ou

tsta

nd

ing

du

rin

g th

e p

eri

od

.

D

ilute

d E

PS

is d

ete

rmin

ed

by

adju

stin

g t

he p

rofit

or

loss

att

rib

uta

ble

to

ord

inar

y sh

areh

old

ers

and

th

e w

eig

hte

d a

vera

ge n

um

ber

of o

rdin

ary

shar

es

ou

tsta

nd

ing

for

the e

ffects

of al

l dilu

tive

po

ten

tial o

rdin

ary

shar

es

that

co

mp

rise

sh

are o

ptio

ns

gra

nte

d t

o e

mp

loye

es.

O

pe

rati

ng

se

gm

en

t re

po

rtin

g

O

pera

ting

seg

men

ts a

re d

istin

gu

ish

able

co

mp

on

en

ts o

f th

e G

rou

p t

hat

th

e C

hai

rman

, as

the

ch

ief o

pera

ting

decis

ion

-mak

er

in t

he G

rou

p, r

evi

ew

s o

pera

ting

an

d fi

nan

cia

l rep

ort

ing

for

on

a re

gu

lar

bas

is t

o a

ssess

perf

orm

ance a

nd

to

allo

cat

e r

eso

urc

es.

O

pera

ting

se

gm

en

t re

sults,

as

sets

an

d

liab

ilitie

s in

clu

de

item

s d

irectly

attr

ibu

tab

le

to

a

seg

men

t as

well

as t

ho

se t

hat

can

be a

llocat

ed

on

a r

eas

on

able

bas

is.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

3.

sig

nifi

can

t ac

cou

nti

ng

po

lici

es

co

ntin

ued

A

sse

ts h

eld

fo

r sa

le a

nd

dis

con

tin

ue

d o

pe

rati

on

s

A

sse

ts h

eld

fo

r sa

le

N

on

-cu

rren

t as

sets

, or

dis

po

sal g

rou

ps

co

mp

risi

ng

ass

ets

an

d li

abili

ties,

are

cla

ssifi

ed

as

held

-

for-

sale

if it

is h

igh

ly p

rob

able

th

at t

hey

will

be r

eco

vere

d p

rim

arily

th

rou

gh

sal

e o

r d

istr

ibu

tion

rath

er

than

th

rou

gh

co

ntin

uin

g u

se.

Im

med

iate

ly b

efo

re c

lass

ificat

ion

as

held

-fo

r-sa

le,

the a

ssets

are

rem

eas

ure

d in

acco

rdan

ce

with

th

e G

rou

p’s

oth

er

acco

un

ting

po

licie

s. T

here

afte

r, g

en

era

lly t

he a

ssets

, o

r d

isp

osa

l

gro

up

, are

meas

ure

d a

t th

e lo

wer

of t

heir

car

ryin

g a

mo

un

t an

d fa

ir v

alu

e le

ss c

ost

s to

sell.

An

y

imp

airm

en

t lo

ss o

n a

dis

po

sal g

rou

p is

allo

cat

ed

firs

t to

go

od

will

, an

d t

hen

to

th

e r

em

ain

ing

asse

ts a

nd

lia

bili

ties

on

a p

ro r

ata

bas

is,

exc

ep

t th

at n

o l

oss

is

allo

cat

ed

to

fin

ancia

l as

sets

or

defe

rred

tax

ass

ets

, w

hic

h c

on

tinu

e t

o b

e m

eas

ure

d i

n a

cco

rdan

ce w

ith t

he G

rou

p’s

oth

er

acco

un

ting

po

licie

s. I

mp

airm

en

t lo

sses

on

in

itial

cla

ssifi

cat

ion

as

held

-fo

r-sa

le a

nd

sub

seq

uen

t g

ain

s an

d l

oss

es

on

rem

eas

ure

men

t ar

e r

eco

gn

ised

in

pro

fit o

r lo

ss.

Gai

ns

are

no

t re

co

gn

ised

in e

xcess

of

any

cu

mu

lativ

e im

pai

rmen

t lo

ss.

O

nce c

lass

ified

as

held

-fo

r-sa

le, i

nta

ng

ible

ass

ets

an

d e

qu

ipm

en

t ar

e n

o lo

ng

er

amo

rtis

ed

or

dep

recia

ted

.

D

isco

nti

nu

ed

op

era

tio

ns

A

dis

co

ntin

ued

op

era

tion

is

a co

mp

on

en

t o

f th

e G

rou

p’s

bu

sin

ess

, th

e o

pera

tion

an

d c

ash

flow

s o

f w

hic

h c

an b

e c

lear

ly d

istin

gu

ish

ed

fro

m t

he r

est

of

the G

rou

p a

nd

wh

ich

:

rep

rese

nts

a s

ep

arat

e m

ajo

r lin

e o

f b

usi

ness

or

geo

gra

ph

ical

are

a o

f o

pera

tion

s;

is p

art

of

a si

ng

le c

o-o

rdin

ated

pla

n t

o d

isp

ose

of

a se

par

ate m

ajo

r lin

e o

f b

usi

ness

or

geo

gra

ph

ical

are

a o

f o

pera

tion

s; o

r

is a

su

bsi

dia

ry a

cq

uired

exc

lusi

vely

with

a v

iew

to

re-s

ale.

C

lass

ificat

ion

as

a d

isco

ntin

ued

op

era

tion

occu

rs o

n d

isp

osa

l o

r w

hen

th

e o

pera

tion

meets

the c

rite

ria

to b

e c

lass

ified

as

held

-fo

r-sa

le, i

f ear

lier.

W

hen

an

op

era

tion

is

cla

ssifi

ed

as

a d

isco

ntin

ued

op

era

tion

, th

e c

om

par

ativ

e s

tate

men

t o

f

co

mp

reh

en

sive

inco

me is

re-p

rese

nte

d a

s if

the o

pera

tion

had

been

dis

co

ntin

ued

fro

m t

he

star

t o

f th

e c

om

par

ativ

e y

ear

.

N

ew

Sta

nd

ard

s an

d In

terp

reta

tio

ns

T

he f

ollo

win

g S

tan

dar

ds

cam

e in

to e

ffect

in t

he c

urr

en

t ye

ar.

Th

e S

tan

dar

ds

did

no

t h

ave a

mat

eri

al e

ffect

in t

he c

urr

en

t ye

ar.

stan

dar

d/i

nte

rpre

tati

on

E

ffec

tive

dat

e o

n o

r af

ter

IAS

1P

rese

nta

tion

of

Fin

ancia

l Sta

tem

en

ts

New

req

uirem

en

ts t

o g

rou

p t

og

eth

er

item

s w

ithin

oth

er

co

mp

reh

en

sive

inco

me t

hat

may

be r

ecla

ssifi

ed

to

th

e p

rofit

or

loss

sectio

n o

f th

e in

co

me s

tate

men

t in

ord

er

to f

acili

tate

the a

ssess

men

t o

f th

eir

imp

act

on

th

e o

vera

ll p

erf

orm

ance o

f

an e

ntit

y.

1 Ju

ly 2

012

A

t th

e d

ate o

f au

tho

risa

tion

of

the fi

nan

cia

l sta

tem

en

ts f

or

the y

ear

en

ded

31

Au

gu

st 2

013

, th

e

follo

win

g S

tan

dar

ds

and

Inte

rpre

tatio

ns

were

in is

sue b

ut

no

t ye

t eff

ectiv

e:

stan

dar

d/i

nte

rpre

tati

on

E

ffec

tive

dat

e o

n o

r af

ter

IAS

1 P

rese

nta

tion

of

Fin

ancia

l Sta

tem

en

ts

An

nu

al Im

pro

vem

en

ts 2

00

9 –

20

11 C

ycle

: A

men

dm

en

ts

cla

rify

ing

th

e r

eq

uirem

en

ts f

or

co

mp

arat

ive in

form

atio

n

inclu

din

g m

inim

um

an

d a

dd

itio

nal

co

mp

arat

ive in

form

atio

n

req

uired

.

1 Ja

nu

ary

20

13

IAS

16

Pro

pert

y, P

lan

t an

d E

qu

ipm

en

t

An

nu

al Im

pro

vem

en

ts 2

00

9 –

20

11 C

ycle

: A

men

dm

en

ts t

o t

he

reco

gn

itio

n a

nd

cla

ssifi

cat

ion

of

serv

icin

g e

qu

ipm

en

t.

1 Ja

nu

ary

20

13

IAS

19

Em

plo

yee B

en

efit

s

Am

en

dm

en

ts t

o t

he a

cco

un

ting

fo

r cu

rren

t an

d f

utu

re

ob

ligat

ion

s re

sultin

g f

rom

th

e p

rovi

sio

n o

f d

efin

ed

ben

efit

pla

ns.

1 Ja

nu

ary

20

13


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

3.

sig

nifi

can

t ac

cou

nti

ng

po

lici

es

co

ntin

ued

N

ew

Sta

nd

ard

s an

d In

terp

reta

tio

ns

co

ntin

ued

stan

dar

d/i

nte

rpre

tati

on

E

ffec

tive

dat

e o

n o

r af

ter

IAS

32

Fi

nan

cia

l In

stru

men

ts:

Pre

sen

tatio

n

Am

en

dm

en

ts r

eq

uire e

ntit

ies

to d

isclo

se g

ross

am

ou

nts

sub

ject

to r

igh

ts o

f se

t-o

ff, a

mo

un

ts s

et

off

in a

cco

rdan

ce w

ith

the a

cco

un

ting

sta

nd

ard

s fo

llow

ed

, an

d t

he r

ela

ted

net

cre

dit

exp

osu

re. T

his

info

rmat

ion

will

help

inve

sto

rs u

nd

ers

tan

d

the e

xten

t to

wh

ich

an

en

tity

has

set

off

in it

s b

alan

ce s

heet

and

th

e e

ffects

of

rig

hts

of

set-

off

on

th

e e

ntit

y’s

rig

hts

and

ob

ligat

ion

s. A

nn

ual

Imp

rove

men

ts 2

00

9–

20

11 C

ycle

:

Am

en

dm

en

ts t

o c

lari

fy t

he t

ax e

ffect

of

dis

trib

utio

n t

o h

old

ers

of

eq

uity

inst

rum

en

ts.

1 Ja

nu

ary

20

13

IAS

34

In

teri

m F

inan

cia

l Rep

ort

ing

An

nu

al Im

pro

vem

en

ts 2

00

9 –

20

11 C

ycle

: A

men

dm

en

ts t

o

imp

rove

th

e d

isclo

sure

s fo

r in

teri

m fi

nan

cia

l rep

ort

ing

an

d

seg

men

t in

form

atio

n f

or

tota

l ass

ets

an

d li

abili

ties.

1 Ja

nu

ary

20

13

IFR

S 7

Fin

ancia

l In

stru

men

ts:

Dis

clo

sure

Am

en

dm

en

ts r

eq

uire e

ntit

ies

to d

isclo

se g

ross

am

ou

nts

sub

ject

to r

igh

ts o

f se

t-o

ff, a

mo

un

ts s

et

off

in a

cco

rdan

ce w

ith

the a

cco

un

ting

sta

nd

ard

s fo

llow

ed

, an

d t

he r

ela

ted

net

cre

dit

exp

osu

re. T

his

info

rmat

ion

will

help

inve

sto

rs u

nd

ers

tan

d

the e

xten

t to

wh

ich

an

en

tity

has

set

off

in it

s b

alan

ce s

heet

and

th

e e

ffects

of

rig

hts

of

set-

off

on

th

e e

ntit

y’s

rig

hts

an

d

ob

ligat

ion

s.

1 Ja

nu

ary

20

13

IFR

S 9

Fin

ancia

l In

stru

men

ts

New

Sta

nd

ard

th

at f

orm

s th

e fi

rst

par

t o

f a

thre

e-p

art

pro

ject

to r

ep

lace IA

S 3

9 F

inan

cia

l In

stru

men

ts:

Reco

gn

itio

n a

nd

Meas

ure

men

t.

1 Ja

nu

ary

20

15

IFR

S 13

Fair

Val

ue M

eas

ure

men

t

New

gu

idan

ce o

n f

air

valu

e m

eas

ure

men

t an

d d

isclo

sure

req

uirem

en

ts.

1 Ja

nu

ary

20

13

T

he G

rou

p d

oes

no

t in

ten

d t

o e

arly

ad

op

t an

y o

f th

e S

tan

dar

ds

and

man

agem

en

t is

of

the o

pin

ion

th

at a

do

ptio

n o

f th

ese

Sta

nd

ard

s w

ill n

ot

hav

e a

sig

nifi

can

t eff

ect,

oth

er

than

add

itio

nal

dis

clo

sure

, on

th

e fi

nan

cia

l sta

tem

en

ts.

4.

de

term

inat

ion

of

fair

val

ue

s

A n

um

ber

of

the G

rou

p’s

acco

un

ting

po

licie

s an

d d

isclo

sure

s re

qu

ire t

he d

ete

rmin

atio

n o

f

fair v

alu

e,

for

bo

th fi

nan

cia

l an

d n

on

-fin

ancia

l as

sets

an

d l

iab

ilitie

s. F

air

valu

es

hav

e b

een

dete

rmin

ed

fo

r m

eas

ure

men

t an

d/o

r d

isclo

sure

pu

rpo

ses

bas

ed

on

th

e f

ollo

win

g m

eth

od

s.

Wh

en

ap

plic

able

, fu

rth

er

info

rmat

ion

ab

ou

t th

e a

ssu

mp

tion

s m

ade in

dete

rmin

ing

fai

r va

lues

is d

isclo

sed

in t

he n

ote

s sp

ecifi

c t

o t

hat

ass

et

or

liab

ility

.

E

qu

ipm

en

t

T

he

fair

valu

e o

f eq

uip

men

t rec

og

nis

ed a

s a

resu

lt o

f a b

usi

nes

s co

mb

inat

ion

is b

ased

on

mar

ket

valu

es. T

he

mar

ket

valu

e o

f eq

uip

men

t is

bas

ed o

n q

uo

ted

mar

ket

pric

es fo

r si

mila

r ite

ms.

In

tan

gib

le a

sse

ts

T

he f

air

valu

e o

f cu

sto

mer

rela

tion

ship

s ac

qu

ired

in

a b

usi

ness

co

mb

inat

ion

is

dete

rmin

ed

usi

ng

th

e m

ulti-

peri

od

exc

ess

ear

nin

gs

meth

od

, w

here

by

the s

ub

ject

asse

t is

val

ued

aft

er

ded

uctin

g a

fai

r re

turn

on

all

asse

ts t

hat

are

par

t o

f cre

atin

g t

he r

ela

ted

cas

h fl

ow

s. T

he f

air

valu

e o

f tr

adem

arks

acq

uired

in

a b

usi

ness

co

mb

inat

ion

is

bas

ed

on

dis

co

un

ted

est

imat

ed

roya

lty

pay

men

ts t

hat

hav

e b

een

avo

ided

as

a re

sult o

f it

bein

g o

wn

ed

.

T

he fa

ir v

alu

e o

f oth

er

inta

ng

ible

ass

ets

is b

ased

on

th

e d

isco

un

ted

cas

h fl

ow

s exp

ecte

d to

be

deri

ved

fro

m t

he u

se a

nd

eve

ntu

al s

ale o

f th

e a

ssets

.

O

the

r in

vest

me

nts

T

hese

inve

stm

en

ts a

re d

esi

gn

ated

as

fair

val

ue t

hro

ug

h p

rofit

or

loss

.

U

nlis

ted

in

vest

men

ts a

nd

in

vest

men

ts t

hat

meet

the I

AS

28

sco

pe e

xclu

sio

n a

re c

arri

ed

at

their

est

imat

ed

fai

r va

lue a

s d

ete

rmin

ed

by

the b

oar

d a

t th

e r

ep

ort

ing

dat

e.

Th

e r

esu

ltan

t in

cre

ase o

r d

ecre

ase in

fai

r va

lue is

reco

gn

ised

as

oth

er

inco

me in

pro

fit o

r lo

ss.

Fa

ir

valu

e

rep

rese

nts

th

e

amo

un

t fo

r w

hic

h

an

asse

t co

uld

b

e

exc

han

ged

b

etw

een

kn

ow

led

geab

le,

will

ing

par

ties

in a

n a

rm’s

len

gth

tra

nsa

ctio

n.

In e

stim

atin

g f

air

valu

e,

the

directo

rs u

se a

meth

od

olo

gy

wh

ich

is a

pp

rop

riat

e in

lig

ht o

f th

e n

atu

re, f

acts

an

d c

ircu

mst

ances

of

the i

nve

stm

en

t. D

ue t

o t

he i

nh

ere

nt

un

cert

ain

ties

in e

stim

atin

g t

he v

alu

e o

f u

nlis

ted

in

vest

men

ts, t

he d

irecto

rs e

xerc

ise d

ue c

autio

n in

ap

ply

ing

th

e v

ario

us

meth

od

olo

gie

s.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

4.

de

term

inat

ion

of

fair

val

ue

s co

ntin

ued

O

the

r in

vest

me

nts

co

ntin

ued

T

he p

rin

cip

al m

eth

od

olo

gie

s ap

plie

d in

val

uin

g u

nlis

ted

inve

stm

en

ts a

re a

s fo

llow

s:

Ear

nin

gs

mu

ltip

le;

Pri

ce o

f re

cen

t in

vest

men

t ac

tiviti

es;

Net

asse

ts;

Dis

co

un

ted

cas

h fl

ow

or

ear

nin

gs

(of

the u

nd

erl

yin

g b

usi

ness

);

Dis

co

un

ted

cas

h fl

ow

(fr

om

th

e in

vest

men

t);

Ind

ust

ry v

alu

atio

n b

en

ch

mar

ks;

and

Ava

ilab

le m

arke

t p

rices.

In

ap

ply

ing

th

e e

arn

ing

s m

ultip

le m

eth

od

olo

gy,

th

e d

irecto

rs a

pp

ly a

mar

ket-

bas

ed

mu

ltip

le

that

is a

pp

rop

riat

e a

nd

reas

on

able

to

th

e m

ain

tain

able

ear

nin

gs

of

the G

rou

p.

W

here

a r

ecen

t in

vest

men

t h

as b

een

mad

e,

this

pri

ce w

ill b

e u

sed

as

the b

est

est

imat

e o

f fa

ir v

alu

e. A

n a

ltern

ativ

e v

alu

atio

n m

eth

od

olo

gy

may

be u

sed

at

any

time if

th

is is

deem

ed

to

p

rovi

de a

bett

er

asse

ssm

en

t o

f th

e f

air

valu

e o

f an

inve

stm

en

t.

Li

sted

inve

stm

en

ts a

re c

arri

ed

at

their

fai

r va

lues,

usi

ng

qu

ote

d p

rices

at t

he r

ep

ort

ing

dat

e.

W

here

an

activ

e m

arke

t d

oes

no

t exi

st f

or

the q

uo

ted

inve

stm

en

t, e

stim

atio

n t

ech

niq

ues

are

use

d t

o d

ete

rmin

e f

air

valu

e. C

han

ges

in f

air

valu

e a

re r

efle

cte

d in

pro

fit o

r lo

ss u

nd

er

oth

er

inco

me.

Tr

ade

an

d o

the

r re

ceiv

able

s

Th

e f

air

valu

e o

f tr

ade a

nd

oth

er

receiv

able

s is

est

imat

ed

as

the p

rese

nt

valu

e o

f fu

ture

cas

h

flow

s, d

isco

un

ted

at

the m

arke

t ra

te o

f in

tere

st a

t th

e r

ep

ort

ing

dat

e.

D

eri

vati

ves

T

he f

air

valu

e o

f d

eri

vativ

es

is b

ased

on

th

eir

list

ed

mar

ket

pri

ce.

N

on

-de

riva

tive

fin

anci

al li

abili

tie

s

Fa

ir v

alu

e,

wh

ich

is

dete

rmin

ed

fo

r d

isclo

sure

pu

rpo

ses,

is

cal

cu

late

d b

ased

on

th

e p

rese

nt

valu

e o

f fu

ture

pri

ncip

al a

nd

inte

rest

cas

h fl

ow

s, d

isco

un

ted

at

the m

arke

t ra

te o

f in

tere

st a

t

the r

ep

ort

ing

dat

e.

Sh

are

-bas

ed

pay

me

nt

tran

sact

ion

s

T

he f

air

valu

e o

f em

plo

yee s

har

e o

ptio

ns

is m

eas

ure

d u

sin

g a

mo

difi

ed

bin

om

ial

latt

ice

mo

del.

Meas

ure

men

t in

pu

ts i

nclu

de s

har

e p

rice o

n m

eas

ure

men

t d

ate,

exe

rcis

e p

rice o

f

the i

nst

rum

en

t, e

xpecte

d v

ola

tility

(b

ased

on

weig

hte

d a

vera

ge h

isto

ric v

ola

tility

ad

just

ed

for

ch

ang

es

exp

ecte

d d

ue t

o p

ub

licly

ava

ilab

le in

form

atio

n),

weig

hte

d a

vera

ge e

xpecte

d li

fe

of

the i

nst

rum

en

ts (

bas

ed

on

his

tori

cal

exp

eri

en

ce a

nd

gen

era

l o

ptio

n h

old

er

beh

avio

ur)

,

exp

ecte

d d

ivid

en

ds,

an

d t

he r

isk-

free in

tere

st r

ate (b

ased

on

go

vern

men

t b

on

ds)

. Serv

ice a

nd

no

n-m

arke

t p

erf

orm

ance c

on

diti

on

s at

tach

ed

to

th

e t

ran

sactio

ns

are n

ot

take

n in

to a

cco

un

t

in d

ete

rmin

ing

fai

r va

lue.

5.

Fin

anci

al r

isk

man

age

me

nt

O

verv

iew

T

he

Gro

up

has

exp

osu

re to

the

follo

win

g ris

ks fr

om

its

use

of fi

nan

cial

inst

rum

ents

(see

no

te 2

7):

Cre

dit

risk

;

Liq

uid

ity r

isk;

an

d

Mar

ket

risk

.

T

he b

oar

d o

f d

irecto

rs h

as o

vera

ll re

spo

nsi

bili

ty f

or

the e

stab

lish

men

t an

d o

vers

igh

t o

f

the G

rou

p’s

ris

k m

anag

em

en

t fr

amew

ork

an

d h

as d

ele

gat

ed

th

is r

esp

on

sib

ility

to

th

e r

isk

man

agem

en

t co

mm

ittee. T

he m

anag

em

en

t o

f th

e v

ario

us

Gro

up

co

mp

anie

s ar

e r

esp

on

sib

le

for

imp

lem

en

ting

th

e r

isk

po

licie

s.

D

iffere

nt

un

its o

f th

e b

usi

ness

req

uire d

iffere

nt

app

roac

hes

to r

isk

man

agem

en

t to

be

deve

lop

ed

. Fo

r exa

mp

le,

the r

isk

man

agem

en

t in

GT

247.

co

m a

nd

Vo

ltb

et

is s

pecifi

cal

ly

tailo

red

fo

r th

e p

rod

ucts

an

d s

erv

ices

eac

h p

rovi

des.

T

he G

rou

p’s

ris

k m

anag

em

en

t p

olic

ies

are e

stab

lish

ed

to

id

en

tify

and

an

alys

e t

he r

isks

fac

ed

by

the G

rou

p,

to s

et

app

rop

riate

ris

k lim

its a

nd

co

ntr

ols

, an

d t

o m

on

itor

risks

an

d a

dh

ere

nce

to l

imits

. R

isk

man

agem

en

t p

olic

ies

and

sys

tem

s ar

e r

evi

ew

ed

reg

ula

rly

to r

efle

ct c

han

ges

in

mar

ket

con

diti

on

s an

d t

he G

rou

p’s

act

iviti

es.

Th

e G

rou

p a

ims

to d

eve

lop

a d

isci

plin

ed

an

d

con

stru

ctiv

e c

on

tro

l en

viro

nm

en

t in

wh

ich

all

em

plo

yees

un

ders

tan

d th

eir

role

s an

d o

blig

atio

ns.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

5.

Fin

anci

al r

isk

man

age

me

nt

co

ntin

ued

C

red

it r

isk

C

red

it ri

sk is

th

e r

isk

of

finan

cia

l lo

ss t

o t

he G

rou

p if

a c

ust

om

er

or

co

un

terp

arty

to

a fi

nan

cia

l in

stru

men

t fa

ils t

o m

eet

its c

on

trac

tual

ob

ligat

ion

s, a

nd

ari

ses

pri

ncip

ally

fro

m t

he G

rou

p’s

re

ceiv

able

s fr

om

cu

sto

mers

, tra

din

g c

ou

nte

rpar

ties

and

inve

stm

en

ts.

Tr

ade

an

d o

the

r re

ceiv

able

s

G

T24

7.co

m a

nd

GT

Pri

vate

Bro

kin

g’s

(Deri

vativ

es

Bu

sin

ess

) cu

sto

mers

are

req

uired

to

dep

osi

t cas

h b

efo

re t

rad

ing

an

d p

ay in

itial

mar

gin

on

all

trad

es.

Th

e c

lien

t b

alan

ces

are a

dju

sted

an

d

revi

ew

ed

dai

ly a

nd

an

y m

arg

in c

alls

fo

llow

ed

up

im

med

iate

ly.

Wh

ere

a m

arg

in c

all

is n

ot

reso

lved

th

rou

gh

a c

ash

dep

osi

t, t

he c

lien

t’s t

rad

ing

po

sitio

ns

are l

iqu

idat

ed

to

co

ver

the

mar

gin

cal

l.

V

oltb

et’s

cu

sto

mers

are

req

uired

to

dep

osi

t cas

h t

o c

ove

r al

l b

ets

befo

re a

bet

is a

ccep

ted

. N

o c

red

it is

giv

en

.

In

Pu

rple

Cap

ital

and

Pu

rple

Cap

ital

Treas

ury

, tr

ade r

eceiv

able

s ar

e r

est

ricte

d t

o a

few

lar

ge

co

rpo

rate

s w

ho

se li

qu

idity

po

sitio

n is

kn

ow

n t

o t

he G

rou

p.

C

red

it ri

sk is

co

ncen

trat

ed

in S

ou

th A

fric

a. T

he G

rou

p e

stab

lish

es

an a

llow

ance fo

r im

pai

rmen

t th

at r

ep

rese

nts

its

est

imat

e o

f in

cu

rred

loss

es

in r

esp

ect

of

trad

e a

nd

oth

er

receiv

able

s. T

he

mai

n c

om

po

nen

t o

f th

is a

llow

ance i

s a

specifi

c l

oss

co

mp

on

en

t th

at r

ela

tes

to i

nd

ivid

ual

ly

sig

nifi

can

t exp

osu

res.

Tr

adin

g c

ou

nte

rpar

tie

s

T

he D

eri

vativ

es

Bu

sin

ess

has

var

iou

s tr

adin

g c

ou

nte

rpar

ties

and

miti

gat

es

the r

isk

of

defa

ult

thro

ug

h u

sin

g m

ultip

le c

ou

nte

rpar

ties

and

eva

luat

ing

th

e c

ou

nte

rpar

ty c

red

it w

ort

hin

ess

on

an

on

go

ing

bas

is.

C

lien

t exp

osu

re is

co

ntr

olle

d t

hro

ug

h r

isk

limits

an

d t

he m

arg

inin

g p

rocess

.

O

the

r in

vest

me

nts

P

urp

le C

apita

l m

on

itors

th

e c

red

it ri

sk o

f its

var

iou

s in

vest

men

ts o

n a

n o

ng

oin

g b

asis

an

d

will

liai

se w

ith m

anag

em

en

t to

reso

lve a

ny

pro

ble

ms

that

may

ari

se b

efo

re t

hey

cau

se c

red

it p

rob

lem

s.

Li

qu

idit

y ri

sk

Liq

uid

ity r

isk

is t

he r

isk

that

th

e G

rou

p w

ill n

ot

be a

ble

to

meet

its fi

nan

cial

ob

ligat

ion

s as

th

ey

fall

du

e. T

he G

rou

p’s

ap

pro

ach

to

man

agin

g li

qu

idity

is t

o e

nsu

re, a

s fa

r as

po

ssib

le, t

hat

it w

ill

alw

ays

hav

e s

uffi

cien

t liq

uid

ity t

o m

eet

its li

abili

ties

wh

en

du

e, u

nd

er

bo

th n

orm

al a

nd

str

ess

ed

co

nd

itio

ns,

with

ou

t in

curr

ing

un

acce

pta

ble

loss

es

or

riski

ng

dam

age to

th

e G

rou

p’s

rep

uta

tion

.

M

arke

t ri

sk

M

arke

t ri

sk is

th

e r

isk

that

ch

ang

es

in m

arke

t p

rices,

su

ch

as

fore

ign

exc

han

ge r

ates,

inte

rest

rate

s an

d e

qu

ity p

rices

will

aff

ect

the G

rou

p’s

inco

me o

r th

e v

alu

e o

f its

ho

ldin

gs

of

finan

cia

l

inst

rum

en

ts. T

he o

bje

ctiv

e o

f m

arke

t ri

sk m

anag

em

en

t is

to

man

age a

nd

co

ntr

ol m

arke

t ri

sk

exp

osu

res

with

in a

ccep

tab

le p

aram

ete

rs, w

hile

op

timis

ing

th

e r

etu

rn.

T

he D

eri

vativ

es

Bu

sin

ess

an

d A

sset

Man

agem

en

t B

usi

ness

bu

ys a

nd

sells

deri

vativ

es,

an

d a

lso

incu

rs fi

nan

cia

l lia

bili

ties,

in o

rder

to m

anag

e m

arke

t ris

ks. A

ll su

ch

tran

sactio

ns

are c

arri

ed

ou

t

with

in t

he g

uid

elin

es

set

by

the b

oar

d a

nd

th

e r

isk

co

mm

ittee.

C

urr

en

cy r

isk

T

he G

rou

p is

exp

ose

d t

o c

urr

en

cy

risk

on

exp

en

ses

that

are

den

om

inat

ed

in a

cu

rren

cy

oth

er

than

th

e r

esp

ectiv

e f

un

ctio

nal

cu

rren

cie

s o

f G

rou

p e

ntit

ies,

pri

mar

ily t

he S

ou

th A

fric

an R

and

.

In

tere

st o

n b

orr

ow

ing

s is

den

om

inat

ed

in c

urr

en

cie

s th

at m

atch

th

e c

ash

flo

ws

gen

era

ted

by

the u

nd

erl

yin

g o

pera

tion

s o

f th

e G

rou

p, p

rim

arily

So

uth

Afr

ican

Ran

d (

ZA

R).

In

resp

ect

of

oth

er

mo

neta

ry a

ssets

an

d l

iab

ilitie

s d

en

om

inat

ed

in

fo

reig

n c

urr

en

cie

s, t

he

Gro

up

en

sure

s th

at it

s n

et

exp

osu

re is

kep

t to

an

accep

tab

le le

vel b

y b

uyi

ng

or

selli

ng

fo

reig

n

cu

rren

cie

s at

sp

ot

rate

s w

hen

necess

ary

to a

dd

ress

sh

ort

-term

imb

alan

ces.

In

tere

st r

ate

ris

k

T

he G

rou

p i

s exp

ose

d t

o i

nte

rest

rat

e r

isk

on

its

lo

ans

and

bo

rro

win

gs,

cas

h a

nd

cas

h

eq

uiv

alen

ts a

nd

oth

er

inve

stm

en

ts t

hat

are

lin

ked

to

pri

me in

tere

st r

ates.

Th

e G

rou

p d

oes

no

t

hed

ge t

hese

pre

sen

tly

bu

t w

ou

ld d

o s

o if

it f

elt t

hat

it w

as n

ecess

ary.

P

urp

le C

apita

l’s i

nve

stm

en

ts a

re s

ub

ject

to v

aria

ble

in

tere

st r

ates

and

are

exp

ose

d t

o a

ris

k

of

ch

ang

e i

n c

ash

flo

ws

du

e t

o c

han

ges

in i

nte

rest

rat

es.

Eq

uity

in

vest

men

ts a

nd

tra

de

receiv

able

s an

d p

ayab

les

are n

ot

exp

ose

d t

o in

tere

st r

ate r

isks

.

O

the

r m

arke

t p

rice

ris

k

E

qu

ity p

rice r

isk

has

an

im

pac

t o

n t

he f

air

valu

e o

f P

urp

le C

apita

l’s i

nve

stm

en

ts.

Mat

eri

al

inve

stm

en

ts a

re c

on

stan

tly

mo

nito

red

an

d b

uy

and

sell

decis

ion

s ap

pro

ved

by

the b

oar

d.

T

he D

eri

vativ

es

Bu

sin

ess

op

era

tion

s ar

e s

ub

ject

to e

qu

ity, co

mm

od

ity, in

dic

es

and

cu

rren

cy

pri

ce m

ove

men

ts. D

eta

iled

val

ue-a

t-ri

sk a

nal

ysis

is p

erf

orm

ed

on

a c

on

tinu

al b

asis

to

en

sure

the D

eri

vativ

es

Bu

sin

ess

lim

its a

re n

ot

bre

ach

ed

an

d a

pp

rop

riat

e h

ed

ges

are in

pla

ce.

E

xpo

sure

to th

ese

risk

s is

als

o m

itig

ated

thro

ug

h th

e b

uyi

ng

an

d s

elli

ng

of d

eriv

ativ

e in

stru

men

ts.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

5.

Fin

anci

al r

isk

man

age

me

nt

co

ntin

ued

C

apit

al m

anag

em

en

t

T

he b

oar

d’s

po

licy

is t

o m

ain

tain

a s

tro

ng

cap

ital b

ase s

o a

s to

mai

nta

in in

vest

or, c

red

itor

and

mar

ket

co

nfid

en

ce a

nd

to

su

stai

n f

utu

re d

eve

lop

men

t o

f th

e b

usi

ness

. T

he b

oar

d s

eeks

to

mai

nta

in a

bal

ance b

etw

een

th

e h

igh

er

retu

rns

that

mig

ht

be p

oss

ible

with

hig

her

leve

ls o

f

bo

rro

win

gs

and

th

e a

dva

nta

ges

and

secu

rity

aff

ord

ed

by

a so

un

d c

apita

l po

sitio

n.

T

he b

oar

d c

on

sid

ers

its

eq

uity

an

d l

on

g-t

erm

bo

rro

win

gs

(as

per

the s

tate

men

t o

f fin

ancia

l

po

sitio

n) a

s its

cap

ital a

nd

man

ages

this

to e

nsu

re th

e G

rou

p is

ad

eq

uat

ely

fun

ded

to c

on

tinu

e

its g

row

th a

nd

fu

nd

its

in

vest

men

ts.

Th

ere

were

no

ch

ang

es

in t

he G

rou

p’s

ap

pro

ach

to

cap

ital m

anag

em

en

t d

uri

ng

th

e y

ear

.

N

eith

er

the C

om

pan

y n

or

any

of

its s

ub

sid

iari

es

are s

ub

ject

to e

xtern

ally

im

po

sed

cap

ital

req

uirem

en

ts.

6.

op

era

tin

g s

eg

me

nts

T

he o

pera

ting

seg

men

ts a

re d

istin

gu

ish

ed

by

the t

ype o

f b

usi

ness

an

d t

he m

anag

em

en

t te

am

resp

on

sib

le f

or

the b

usi

ness

un

it. T

he G

rou

p c

om

pri

ses

the f

ollo

win

g o

pera

ting

seg

men

ts:

GT

24

7.co

m a

nd

EA

M:

are t

he d

eri

vativ

es

trad

ing

an

d a

sset

man

agem

en

t o

pera

tion

s o

f

the G

rou

p;

Pu

rple

Cap

ital

: in

clu

des

the o

pera

ting

co

sts

of

the h

ead

offi

ce;

Inve

stm

en

ts: f

ees

and

div

iden

ds

ear

ned

on

inve

stm

en

ts a

nd

fai

r va

lue a

dju

stm

en

ts m

ade

agai

nst

th

em

;

Po

we

rbe

t G

amin

g P

rop

rie

tary

Lim

ite

d t

rad

ing

as

Vo

ltb

et:

was

the G

rou

p’s

sp

ort

s b

ett

ing

op

era

tion

; an

d

Pu

rple

Cap

ital

Tre

asu

ry P

rop

rie

tary

Lim

ite

d:

was

th

e t

reas

ury

ou

tso

urc

ing

op

era

tion

s o

f

the b

usi

ness

.

6.

op

era

tin

g s

eg

me

nts

co

ntin

ued

Gt

24

7.co

man

d E

aM

r’0

00

pu

rple

C

apit

al

r’0

00

inve

stm

ents

r’0

00

tota

lr

’00

0

20

13

Seg

me

nt

asse

t

No

n-c

urr

en

t as

sets

9 8

69

22

3 3

98

34

22

4

26

7 4

91

Cu

rren

t as

sets

126

65

53

0 2

79–

1

56

93

4

Tota

l ass

ets

136

52

42

53

677

34

22

44

24

42

5

Seg

me

nt

liab

iliti

es

No

n-c

urr

en

t lia

bili

ties

––

––

Cu

rren

t lia

bili

ties

132

60

115

79

6–

148

39

7

Tota

l lia

bili

tie

s13

2 6

01

15 7

96

–14

8 3

97


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

6.

op

era

tin

g s

eg

me

nts

co

ntin

ued

T

her

e ar

e n

o u

nal

loca

ted

am

ou

nts

. Th

e o

nly

mat

eria

l in

ter-

seg

men

t re

ven

ue

is t

he

man

agem

ent

fees

th

at P

urp

le C

apita

l ch

arg

ed F

irst

Wo

rld T

rad

er P

rop

rieta

ry L

imite

d o

f R

6 2

11 0

00

(20

12: R

4 0

80

00

0)

for

the

year

.

dis

con

tin

ued

Gt

24

7.co

man

d E

aM

r’0

00

pu

rple

C

apit

al

r’0

00

inve

stm

ents

r’0

00

Vo

ltb

etr

’00

0

pu

rple

C

apit

altr

easu

ry

r’0

00

inte

r-se

gm

ent

reve

nu

esr

’00

0to

tal

r’0

00

20

13

Reve

nu

e8

2 9

21

6 2

11–

5 9

34

2 0

23

(6 2

11)

90

878

Trad

ing

exp

en

ses

(7 1

09

)–

–(2

48

9)

(36

9)

–(9

96

7)

Op

era

ting

exp

en

ses

(60

63

5)

(7 0

19)

(1 3

20

)(1

8 0

84

)(4

53

3)

6 2

11(8

5 3

80

)

Ne

t in

com

e/(

loss

)

15

177

(80

8)

(1 3

20

)(1

4 6

39

)(2

879

)–

(4

46

9)

Oth

er

inco

me a

nd

fai

r va

lue a

dju

stm

en

ts2

59

–(1

5 3

24

)–

––

(15

06

5)

Pro

fit o

n s

ale o

f su

bsi

dia

ry–

––

21

39

23

21

–2

1 71

3

Pro

fit/

(lo

ss)

be

fore

inte

rest

, de

pre

ciat

ion

an

d a

mo

rtis

atio

n15

43

6(8

08

)(1

6 6

44

) 6

75

3 (

2 5

58

)–

2 1

79

Inte

rest

inco

me

–3

68

––

––

36

8

Inte

rest

exp

en

se(8

)(1

076

)–

––

–(1

08

4)

Dep

recia

tion

an

d a

mo

rtis

atio

n(1

76

7)(3

0)

–(6

04

)(4

89

)–

(2 8

90

)

Pro

fit/

(lo

ss)

be

fore

tax

1

3 6

61

(1

54

6)

(16

64

4)

6 1

49

(3

04

7)–

(1

42

7)

Cu

rren

t an

d d

efe

rred

tax

(2 2

63

)9

113

74

31

164

137

–3

69

2

Pro

fit/

(lo

ss)

afte

r ta

x11

39

8

(

63

5)

(12

90

1)7

313

(2 9

10)

– 2

26

5


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

6.

op

era

tin

g s

eg

me

nts

co

ntin

ued

dis

con

tin

ued

Gt

24

.co

man

d E

aM

r’0

00

pu

rple

C

apit

al

r’0

00

inve

stm

ents

r’0

00

Vo

ltb

etr

’00

0

pu

rple

C

apit

altr

easu

ry

r’0

00

inte

r-se

gm

ent

reve

nu

esr

’00

0to

tal

r’0

00

20

12

Reve

nu

e77

74

64

75

1–

3 8

59

5 1

21

(4 0

80

)8

7 3

97

Trad

ing

exp

en

ses

(9 4

57)

––

(1 9

03

)(9

30

)–

(12

29

0)

Op

era

ting

exp

en

ses

(46

311

)(1

3 9

46

)–

(11

738

)(9

25

0)

4 0

80

(77

165

)

Ne

t in

com

e/(

loss

)2

1 9

78(9

19

5)

–(9

78

2)

(5 0

59

)–

(2

05

8)

Oth

er

inco

me a

nd

fai

r va

lue a

dju

stm

en

ts5

03

5 8

31

3 3

56

––

–9

69

0

Pro

fit/

(lo

ss)

be

fore

inte

rest

, de

pre

ciat

ion

an

d a

mo

rtis

atio

n2

2 4

81

(3 3

64

)3

35

6(9

78

2)

(5 0

59

)–

7 6

32

Net

inte

rest

exp

en

se(1

3)

(95

8)

––

––

(971

)

Dep

recia

tion

an

d a

mo

rtis

atio

n(1

56

3)

(54

)–

(53

9)

(870

)–

(3 0

26

)

Pro

fit/

(lo

ss)

be

fore

tax

20

90

5(4

376

)3

35

6(1

0 3

21)

(5 9

29

)–

3 6

35

Cu

rren

t an

d d

efe

rred

tax

(3 0

85

)(1

38

2)

2 2

45

1 5

53

248

–(4

21)

Pro

fit/

(lo

ss)

afte

r ta

x17

82

0(5

75

8)

5 6

01

(8

768

)(5

68

1)–

3 2

14

No

n-c

on

tro

llin

g in

tere

sts

––

–14

75

87

–73

4

17 8

20

(5 7

58

)5

60

1(8

62

1)(5

09

4)

–3

94

8

Seg

me

nt

asse

t

No

n-c

urr

en

t as

sets

5 6

03

22

9 1

745

0 5

00

1 4

37

––

28

6 7

14

Cu

rren

t as

sets

65

72

210

9–

99

51

175

–6

8 0

01

71 3

25

22

9 2

83

50

50

02

43

21

175

–3

54

715

Seg

me

nt

liab

iliti

es

No

n-c

urr

en

t lia

bili

ties

–1

731

––

––

1 73

1

Cu

rren

t lia

bili

ties

66

84

89

28

1–

2 2

09

1 0

49

–79

38

7

66

84

811

012

–2

20

9 1

04

9–

81

118


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

20

13r

’00

02

012

R’0

00

6.

op

era

tin

g s

eg

me

nts

co

ntin

ued

Re

con

cilia

tio

ns

of

rep

ort

able

se

gm

en

t re

ven

ue

s,

exp

en

ses,

pro

fit

or

loss

an

d o

the

r m

ate

rial

ite

ms

Tota

l reve

nu

e f

or

rep

ort

able

seg

men

ts9

0 8

788

7 3

97

Elim

inat

ion

of

dis

co

ntin

ued

op

era

tion

s(7

95

7)(8

98

0)

Re

ven

ue

– c

on

tin

uin

g o

pe

rati

on

s8

2 9

21

78 4

17

Tota

l tra

din

g e

xpen

ses

for

rep

ort

able

seg

men

ts(9

96

7)(1

2 2

90

)

Elim

inat

ion

of

dis

co

ntin

ued

op

era

tion

s2

85

82

83

3

Trad

ing

exp

en

ses

– c

on

tin

uin

g o

pe

rati

on

s(7

10

9)

(9 4

57)

Tota

l op

era

ting

exp

en

ses

for

rep

ort

able

seg

men

ts(8

5 3

80

)(7

7 16

5)

Elim

inat

ion

of

dis

co

ntin

ued

op

era

tion

s2

2 6

172

0 9

88

Op

era

tin

g e

xpe

nse

s –

co

nti

nu

ing

op

era

tio

ns

(62

76

3)

(56

177

)

Tota

l fai

r va

lue a

nd

oth

er

inco

me f

or

rep

ort

able

seg

men

ts(1

5 0

65

)9

69

0

Ad

d f

air

valu

e a

dju

stm

en

ts15

32

4(3

35

6)

Ad

d G

TE

dis

trib

utio

n–

(5 8

32

)

Oth

er

inco

me

– c

on

tin

uin

g o

pe

rati

on

s2

59

50

2

Tota

l tax

per

seg

men

tal r

ep

ort

ing

3 6

92

(42

1)

Elim

inat

ion

of

dis

co

ntin

ued

op

era

tion

s(1

30

1)(1

80

1)

Tax

– c

on

tin

uin

g o

pe

rati

on

s2

39

1(2

22

2)

Tota

l pro

fit o

r lo

ss p

er

seg

men

tal r

ep

ort

ing

2 2

65

3 9

48

Elim

inat

ion

of

dis

co

ntin

ued

op

era

tion

s(4

40

3)

13 7

15

Pro

fit

or

loss

– c

on

tin

uin

g o

pe

rati

on

s(2

13

8)

17 6

63

7.B

usi

ne

ss c

om

bin

atio

ns

Th

ere

were

no

bu

sin

ess

co

mb

inat

ion

s d

uri

ng

20

13.

20

13r

’00

02

012

R’0

00

8.

re

ven

ue

Co

nti

nu

ing

op

era

tio

ns

Trad

ing

an

d a

sset

man

agem

en

t in

co

me

82

43

475

89

8

Oth

er

fee in

co

me

48

72

519

Tota

l re

ven

ue

82

92

178

417

9.

trad

ing

an

d o

pe

rati

ng

exp

en

ses

Co

nti

nu

ing

op

era

tio

ns

Trad

ing

exp

en

ses

7 10

99

45

7

Bro

ker

co

mm

issi

on

3 3

24

4 1

63

Sale

s co

mm

issi

on

2 4

773

777

Rese

arch

co

sts

1 3

08

1 5

17

Pe

rso

nn

el e

xpe

nse

s3

3 0

09

34

33

0

Wag

es

and

sal

arie

s3

1 2

163

1 6

29

Shar

e-b

ased

pay

men

t exp

en

se1

793

2 7

01

Au

dit

or’

s re

mu

ne

rati

on

875

52

9

Au

dit

fees

– c

urr

en

t ye

ar8

755

29

List

ing

exp

en

ses

20

54

25

Leas

e r

en

tals

4 5

81

5 1

90

Pre

mis

es

4 3

155

02

1

Eq

uip

men

t2

66

169

Fee

s p

aid

fo

r se

rvic

es

3 7

35

3 3

98

Co

nsu

ltin

g2

93

79

3

Leg

al79

83

30

5

De

pre

ciat

ion

971

95

5

Co

mp

ute

r eq

uip

men

t3

41

38

1

Furn

iture

an

d fi

ttin

gs

617

54

9

Offi

ce e

qu

ipm

en

t13

25

Am

ort

isat

ion

of

inta

ng

ible

s8

26

66

2

Ava

ilab

le-f

or-

sale

re

cycl

ed

to

pro

fit

and

loss

(44

)–

Imp

airm

en

t lo

ss1

32

0–

Fore

ign

exc

han

ge

loss

60

59


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

20

13r

’00

02

012

R’0

00

10.

oth

er

inco

me

Co

nti

nu

ing

op

era

tio

ns

Oth

er

inco

me

25

9

50

2*

Glo

bal

Tra

der

Eu

rop

e d

istr

ibu

tion

–5

83

2*

* T

hese

am

ou

nts

were

dis

clo

sed

in a

gg

reg

ate in

th

e 2

012

Gro

up

fin

ancia

l sta

tem

en

ts. T

hey

are n

ow

dis

clo

sed

sep

arat

ely

to

cla

rify

th

e d

ecre

ase in

oth

er

inco

me in

th

e c

urr

en

t ye

ar. T

he a

bo

ve

ch

ang

e in

pre

sen

tatio

n h

as h

ad n

o e

ffect

on

th

e G

rou

p’s

pro

fit

or

loss

, sta

tem

en

t o

f ch

ang

es

in e

qu

ity o

r st

atem

en

t o

f fin

ancia

l p

osi

tion

.

11.

ne

t in

tere

st e

xpe

nse

Co

nti

nu

ing

op

era

tio

ns

Inte

rest

inco

me o

n b

ank

dep

osi

ts3

68

94

Inte

rest

inco

me o

n d

eb

en

ture

s–

188

Inte

rest

on

lon

g-t

erm

receiv

able

s–

90

Tota

l in

tere

st in

com

e3

68

372

Tota

l in

tere

st e

xpe

nse

(1 0

84

)(1

34

3)

Ne

t in

tere

st e

xpe

nse

(716

)(9

71)

20

13r

’00

02

012

R’0

00

12.

Cu

rre

nt

and

de

ferr

ed

tax

co

ntin

ued

Co

nti

nu

ing

op

era

tio

ns

Re

cog

nis

ed

in t

he

inco

me

sta

tem

en

t

Cu

rren

t ta

x exp

en

se(3

079

)(3

86

1)

Pri

or

year

tax

exp

en

se–

–

(3 0

79)

(3 8

61)

De

ferr

ed

tax

exp

en

se

Ori

gin

atio

n a

nd

reve

rsal

of

tem

po

rary

diff

ere

nces

4 5

39

35

2

Util

isat

ion

of

cu

rren

t ye

ar’s

tax

loss

93

11

28

7

Tota

l de

ferr

ed

tax

5 4

701

63

9

Tota

l cu

rre

nt

and

de

ferr

ed

tax

2 3

91

(2 2

22

)

Re

con

cilia

tio

n o

f e

ffe

ctiv

e t

ax r

ate

:%

%

Inco

me t

ax c

har

ged

to

inco

me s

tate

men

t(5

2,8

)11

,2

Tax

exe

mp

t in

co

me

156

,7 1

0,2

No

n-d

ed

uctib

le e

xpen

ses

(12

2,8

)(2

,1)

Ass

ess

ed

loss

es

no

t re

co

gn

ised

3,1

1,5

Cap

ital g

ain

s ta

x–

(3,1

)

Ch

ang

e in

inclu

sio

n r

ate*

–8

,3

Reve

rsal

of

pri

or

year

pro

visi

on

s(1

2,2

)2

,0

Do

me

stic

tax

rat

e(2

8,0

)2

8,0

*

Th

e in

clu

sio

n r

ate f

or

cap

ital g

ain

s ta

x ch

ang

ed

fro

m 5

0%

to

66

,66

% in

th

e p

rio

r ye

ar.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

13.

Eq

uip

me

nt

T

he m

ove

men

t in

th

e G

rou

p’s

eq

uip

men

t fo

r th

e y

ear

en

ded

31

Au

gu

st 2

013

is a

s fo

llow

s:

No

te

Co

mp

ute

req

uip

men

tr

’00

0

Fixt

ure

s,fi

ttin

gs

and

leas

eho

ldim

pro

vem

ents

r’0

00

offi

ceeq

uip

men

tr

’00

0to

tal

r’0

00

Co

st

Bal

ance o

n 1

Sep

tem

ber

20

115

73

23

90

42

64

9 9

00

Ad

diti

on

s2

7872

88

43

8

Bal

ance a

t 3

1 A

ug

ust

20

126

010

3 9

763

52

10 3

38

Ad

diti

on

s14

12

46

06

92

670

Sale

of

sub

sid

iary

36

(51)

(30

)–

(81)

Bal

ance

at

31

Au

gu

st 2

013

6 1

00

6 4

06

42

112

92

7

Acc

um

ula

ted

de

pre

ciat

ion

an

d im

pai

rme

nt

loss

es

Bal

ance o

n 1

Sep

tem

ber

20

115

06

42

614

23

57

913

Dep

recia

tion

fo

r th

e y

ear

*9

40

65

55

25

98

6

Bal

ance a

t 3

1 A

ug

ust

20

125

470

3 1

69

26

08

89

9

Dep

recia

tion

fo

r th

e y

ear

*9

35

56

22

139

90

Sale

of

sub

sid

iary

36

(16

)(1

8)

–(3

4)

Bal

ance

at

31

Au

gu

st 2

013

5 8

09

3 7

732

739

85

5

Car

ryin

g a

mo

un

ts

At

1 Se

pte

mb

er

20

116

68

1 2

90

29

1 9

87

At

31

Au

gu

st 2

012

54

08

07

92

1 4

39

At

31

Au

gu

st 2

013

29

12

63

314

83

072

*

Dep

recia

tion

inclu

des

co

ntin

uin

g o

pera

tion

s d

ep

recia

tion

of

R9

71 0

00

(20

12:

R9

55 0

00

) (r

efe

r to

no

te 9

) an

d d

isco

ntin

ued

op

era

tion

s d

ep

recia

tion

of

R19

00

0 (20

12:

R31

00

0).


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

14.

inta

ng

ible

ass

ets

an

d g

oo

dw

ill

T

he m

ove

men

t in

th

e G

rou

p’s

inta

ng

ible

ass

ets

an

d g

oo

dw

ill f

or

the y

ear

en

ded

31

Au

gu

st 2

013

is a

s fo

llow

s:

No

tes

Go

od

will

r’0

00

Cu

sto

mer

rela

tio

n-

ship

sr

’00

0C

on

trac

tsr

’00

0

soft

war

ed

evel

op

-m

ent

r’0

00

Em

plo

yees

r’0

00

Bra

nd

r’0

00

tota

lr

’00

0

Co

st

Bal

ance a

t 1

Sep

tem

ber

20

112

16 5

774

1 9

26

2 0

36

34

54

13

83

3–

2

98

913

Ad

diti

on

s–

––

155

–2

56

02

715

Bal

ance

at

31

Au

gu

st 2

012

216

577

41

92

62

03

63

4 6

96

3 8

33

2 5

60

3

01

62

8

Bal

ance

at

1 Se

pte

mb

er

20

122

16 5

774

1 9

26

2 0

36

34

69

63

83

32

56

0 3

01

62

8

Ad

diti

on

s–

––

86

2–

–8

62

Dis

po

sal o

f su

bsi

dia

ry3

6(3

578

)(1

18

0)

(270

)–

(3

83

3)

(2 5

60

)(1

1 4

21)

Bal

ance

at

31

Au

gu

st 2

013

212

99

94

0 7

46

1 76

63

5 5

58

––

29

1 0

69

Acc

um

ula

ted

am

ort

isat

ion

an

d im

pai

rme

nt

loss

es

Bal

ance

at

1 Se

pte

mb

er

20

118

43

14

0 9

63

1 8

89

32

415

703

–8

4 4

01

Am

ort

isat

ion

fo

r th

e y

ear

*9

–2

37

135

66

176

72

38

2 0

38

Bal

ance

at

31

Au

gu

st 2

012

8 4

31

41

20

02

024

33

076

1 4

702

38

86

43

9

Bal

ance

at

1 Se

pte

mb

er

20

128

43

14

1 2

00

2 0

24

33

076

1 4

702

38

86

43

9

Am

ort

isat

ion

fo

r th

e y

ear

*9

–16

579

82

75

44

28

51

90

0

Dis

po

sal o

f su

bsi

dia

ry3

6–

(619

)(3

37)

–(2

014

)(5

23

)(3

49

3)

Bal

ance

at

31

Au

gu

st 2

013

8 4

31

40

74

61

766

33

90

3–

– 8

4 8

46

Car

ryin

g a

mo

un

ts

At

1 Se

pte

mb

er

20

112

08

14

69

63

147

2 1

26

3 1

30

–2

14 5

12

At

31

Au

gu

st 2

012

20

8 1

46

726

121

62

02

36

32

32

22

15 1

89

At

31

Au

gu

st 2

013

20

4 5

68

––

1 6

55

––

20

6 2

23

*

Th

e a

mo

rtis

atio

n in

clu

des

the c

on

tinu

ing

op

era

tion

s am

ort

isat

ion

am

ou

nt

of

R8

26

00

0 (20

12:

R6

62 0

00

), (R

efe

r n

ote

9) an

d t

he a

mo

rtis

atio

n f

rom

dis

co

ntin

ued

op

era

tion

s fo

r th

e y

ear

of

R1

074

00

0 (20

12:

R1

34

7 0

00

).


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

14.

inta

ng

ible

ass

ets

an

d g

oo

dw

ill c

on

tinu

ed

T

he in

tan

gib

le a

ssets

were

acq

uired

as

par

t of t

he G

lob

al T

rad

er

pu

rch

ase in

No

vem

ber

20

07

and

th

e P

ow

erb

et G

amin

g a

nd

Pu

rple

Cap

ital T

reas

ury

acq

uis

itio

ns

on

1 O

cto

ber

20

10. E

ach

was

val

ued

at

the d

ate o

f ac

qu

isiti

on

. P

urp

le C

apita

l Tr

eas

ury

an

d P

ow

erb

et

Gam

ing

w

ere

sold

in t

he c

urr

en

t ye

ar.

P

urp

le C

apita

l Tr

eas

ury

had

a n

eg

ativ

e g

oo

dw

ill o

f R

755

00

0 r

eco

gn

ised

in

pro

fit o

r lo

ss.

Po

werb

et

Gam

ing

had

po

sitiv

e g

oo

dw

ill o

f R

3,6

mill

ion

.

P

er

IAS

38

, wo

rkfo

rce m

ay b

e reco

gn

ised

as

an in

tan

gib

le a

sset i

f th

e k

no

wle

dg

e is

pro

tecte

d

by

a le

gal

rig

ht. P

urp

le C

apita

l exe

rcis

es

co

ntr

ol o

ver

the e

xpecte

d fu

ture

eco

no

mic

ben

efit

s

aris

ing

fro

m t

he t

eam

of

skill

ed

sta

ff a

nd

fro

m t

rain

ing

du

e t

o t

he r

est

rain

t o

f tr

ade n

ote

d in

eac

h e

mp

loye

e’s

co

ntr

act.

Im

pai

rme

nt

test

ing

fo

r ca

sh-g

en

era

tin

g u

nit

s co

nta

inin

g g

oo

dw

ill

Fo

r th

e p

urp

ose

of

imp

airm

en

t te

stin

g,

go

od

will

is

allo

cat

ed

to

th

e G

rou

p’s

op

era

ting

div

isio

ns

wh

ich

rep

rese

nt

the lo

west

leve

l with

in t

he G

rou

p a

t w

hic

h g

oo

dw

ill is

mo

nito

red

for

inte

rnal

man

agem

en

t p

urp

ose

s. T

he a

gg

reg

ate c

arry

ing

am

ou

nts

of

go

od

will

allo

cat

ed

to e

ach

un

it ar

e a

s fo

llow

s:

20

13r

’00

02

012

R’0

00

Glo

bal

Tra

der

20

4 5

68

20

4 5

68

Po

werb

et

Gam

ing

(su

bsi

dia

ry s

old

in t

he c

urr

en

t ye

ar)

–3

578

20

4 5

68

20

8 1

46

T

he im

pai

rmen

t te

sts

were

bas

ed

on

fair

val

ue le

ss c

ost

s to

sell.

Th

e fa

ir v

alu

e w

as c

alcu

late

d

usi

ng

an

eig

ht-

year

(2

012

: 10

-year

) d

isco

un

ted

cas

h fl

ow

mo

del

bas

ed

on

th

e p

roje

cte

d

inco

me a

nd

exp

en

ses

of

the b

usi

ness

dis

co

un

ted

at

an a

pp

rop

riat

e w

eig

hte

d a

vera

ge c

ost

of c

apita

l. T

he r

eco

vera

ble

am

ou

nt o

f eac

h u

nit

was

in e

xcess

of t

he g

oo

dw

ill c

arry

ing

val

ue.

T

he v

alu

es

assi

gn

ed

to

th

e k

ey

assu

mp

tion

s in

th

e d

isco

un

ted

cas

h fl

ow

mo

del

rep

rese

nt

man

agem

en

t’s a

ssess

men

t o

f fu

ture

tre

nd

s in

th

e o

nlin

e t

rad

ing

an

d s

po

rtsb

ett

ing

secto

rs

and

are

bas

ed

on

bo

th e

xtern

al s

ou

rces

and

in

tern

al s

ou

rces

(his

tori

cal

dat

a).

Th

e m

ain

dri

vers

of

the m

od

el

are t

he a

ssu

mp

tion

s ar

ou

nd

in

co

me g

row

th a

nd

mar

gin

s th

at h

ave

been

bas

ed

on

pas

t tr

en

ds

(e.g

. g

ross

mar

gin

s ac

hie

ved

) an

d m

anag

em

en

t’s v

iew

of

futu

re

pro

spects

. Th

e fai

r va

lue m

eas

ure

men

t te

ch

niq

ue w

ou

ld b

e c

ateg

ori

sed

as

Leve

l 3 in

th

e fai

r

valu

e h

iera

rch

y (s

ee n

ote

2).

Th

e v

alu

atio

n t

ech

niq

ue is

co

nsi

sten

t w

ith p

rio

r ye

ars.

14.

inta

ng

ible

ass

ets

an

d g

oo

dw

ill c

on

tinu

ed

K

ey

assu

mp

tio

ns

use

d

20

132

012

Glo

bal

Tra

de

rD

isco

un

t p

eri

od

8 y

ear

s10

year

sTe

rmin

al g

row

th r

ate (

%)

33

Dis

co

un

t ra

te (%

)11

,04

12,9

7

Po

we

rbe

t G

amin

g (

sub

sid

iary

so

ld in

th

e c

urr

en

t ye

ar)

Dis

co

un

t p

eri

od

–10

year

sTe

rmin

al g

row

th r

ate (

%)

–3

Dis

co

un

t ra

te (%

)–

19,3

T

he v

ario

us

sen

sitiv

ity a

nal

yses

perf

orm

ed

by

ch

ang

ing

key

vari

able

s b

y 1%

in t

he c

alcu

latio

n

resu

lted

in t

he r

eco

vera

ble

am

ou

nt

exc

eed

ing

th

e c

arry

ing

am

ou

nts

in a

ll in

stan

ces.

T

he d

isco

un

t peri

od

ch

ang

ed

fro

m 1

0 to

eig

ht y

ear

s si

nce th

is is

the p

eri

od

that

man

agem

en

t co

uld

cal

cu

late

relia

ble

nu

mb

ers

.

15.

inte

rest

in a

sso

ciat

e c

om

pan

ies

20

13r

’00

02

012

R’0

00

Th

e G

rou

p h

as t

he f

ollo

win

g in

vest

men

ts in

ass

ocia

te

co

mp

anie

s:

Un

liste

d

– C

ost

–3

00

– L

oan

s5

20

05

85

2

Un

liste

d s

har

es

5 2

00

6 1

52

Th

e f

ollo

win

g s

ets

ou

t th

e a

sso

cia

te a

ssets

, lia

bili

ties,

inco

me a

nd

exp

en

ses:

Stat

em

en

t o

f fi

nan

cial

po

siti

on

Ass

ets

5 2

00

743

Liab

ilitie

s(6

15

2)

(4 9

32

)

Ne

t lia

bili

ty v

alu

e(9

52

)(4

18

9)

Inco

me

sta

tem

en

t

Reve

nu

e–

–

Exp

en

ses

––

Pro

fit

––


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

15.

inte

rest

in a

sso

ciat

e c

om

pan

ies

co

ntin

ued

U

mn

om

bo

In

vest

men

t H

old

ing

s is

a

do

rman

t co

mp

any

on

ly

ho

ldin

g

inve

stm

en

ts

in

Blo

ckb

ust

er

Trad

ing

3 P

rop

rieta

ry L

imite

d a

nd

Mis

ty S

ea

Trad

ing

13

1 P

rop

rieta

ry L

imite

d.

dat

e to

wh

ich

eq

uit

y in

com

e a

cco

un

ted

fo

ris

sued

ord

inar

y sh

are

cap

ital

ho

ldin

g

Ass

oci

ate

d c

om

pan

y n

ame

Um

no

mb

o In

vest

men

t

Ho

ldin

gs

Pro

pri

eta

ry L

imite

d

31/

08

/20

1310

04

0%

16.

oth

er

inve

stm

en

ts a

nd

ava

ilab

le-f

or-

sale

inve

stm

en

ts

20

13r

’00

02

012

R’0

00

Th

e G

rou

p h

ad t

he f

ollo

win

g o

ther

inve

stm

en

ts:

Oth

er

inve

stm

en

ts –

sh

ow

n a

t fa

ir v

alu

e

Un

liste

d2

5 4

47

44

20

0

Oth

er

inve

stm

en

ts s

ho

wn

at

fair

val

ue

Stru

ctu

red

inve

stm

en

t in

list

ed

en

tity

3 5

7714

8

Loan

s an

d r

ece

ivab

les

at a

mo

rtis

ed

co

st

Un

liste

d1

143

1 13

7

Tota

l oth

er

inve

stm

en

ts3

0 1

67

45

48

5

A

ssu

mp

tion

s ap

plie

d in

est

imat

ing

th

e f

air

valu

e o

f in

vest

men

ts:

Th

e f

air

valu

es

of

un

liste

d in

vest

men

ts a

re b

ased

on

eith

er

ear

nin

gs

mu

ltip

le (

bas

ed

on

liste

d e

ntit

ies

in t

he in

du

stry

ad

just

ed

fo

r b

ein

g u

nlis

ted

) or

dis

co

un

ted

cas

h fl

ow

mo

del.

Th

e f

air

valu

e o

f lis

ted

inve

stm

en

ts a

re b

ased

on

th

e c

losi

ng

pri

ce a

t th

e r

ep

ort

ing

dat

e

or, w

here

th

ere

are

ext

en

uat

ing

circu

mst

ances,

at

the d

irecto

rs’ v

alu

atio

n.

16.

oth

er

inve

stm

en

ts a

nd

ava

ilab

le-f

or-

sale

inve

stm

en

ts c

on

tinu

ed

Fa

ir v

alu

e t

hro

ug

h p

rofi

t o

r lo

ss

20

13 %2

012 %

Un

liste

d

Afr

ican

Ind

ep

en

den

t R

eta

il Fi

nan

ce P

rop

rieta

ry L

imite

d

15

15

Blo

ckb

ust

er

Trad

ing

3 P

rop

rieta

ry L

imite

d*

37,

5

37,

5

*

Th

is is

th

e e

ntit

y u

sed

fo

r th

e R

eal

Peo

ple

So

uth

Afr

ica

BE

E t

ran

sactio

n.

In

vest

me

nts

he

ld a

t am

ort

ise

d c

ost

Deb

en

ture

s in

Afr

ican

Ind

ep

en

den

t R

eta

il Fi

nan

ce P

rop

rieta

ry L

imite

d

Shar

eh

old

ers

’ lo

ans

to A

fric

an In

dep

en

den

t R

eta

il Fi

nan

ce

Pre

fere

nce s

har

es

in B

lockb

ust

er

Trad

ing

3 P

rop

rieta

ry L

imite

d

O

the

r in

vest

me

nts

P

refe

ren

ce s

har

es

in M

isty

Sea

Trad

ing

131

Pro

prieta

ry L

imite

d t

hat

held

sh

ares

in C

ipla

Med

pro

Lim

ited

, in

dire

ctly

.

A

vaila

ble

-fo

r-sa

le in

vest

me

nts

T

he G

rou

p h

ad t

he f

ollo

win

g a

vaila

ble

-fo

r-sa

le in

vest

men

ts:

20

13r

’00

02

012

R’0

00

Bal

ance 1

Sep

tem

ber

64

23

Fair

val

ue r

eva

luat

ion

s4

22

Real

locat

ion

fro

m o

ther

inve

stm

en

t to

ava

ilab

le-f

or-

sale

–3

9

Sale

of

inve

stm

en

t(1

06

)–

Bal

ance

31

Au

gu

st 2

013

–6

4

Th

e a

vaila

ble

-fo

r-sa

le in

vest

men

ts c

om

pri

se h

old

ing

s in

list

ed

eq

uity

secu

ritie

s th

at p

rese

nt

the G

rou

p t

he o

pp

ort

un

ity f

or

retu

rn t

hro

ug

h d

ivid

en

d a

nd

tra

din

g g

ain

s.

Th

e f

air

valu

es

of

liste

d s

ecu

ritie

s ar

e b

ased

on

qu

ote

d m

arke

t p

rices.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

20

13r

’00

02

012

R’0

00

17.

lon

g-t

erm

re

ceiv

able

sR

en

tal d

ep

osi

ts

118

1 10

2

18.

de

ferr

ed

tax

ass

ets

an

d li

abil

itie

sR

eco

gn

ise

d d

efe

rre

d t

ax a

sse

ts a

nd

liab

iliti

es

Bal

ance a

t th

e b

eg

inn

ing

of

the p

eri

od

17 2

83

14 4

02

Inve

stm

en

ts a

t fa

ir v

alu

e4

60

5(6

19)

Pay

able

s an

d a

ccru

als

(16

2)

56

5

Receiv

able

s an

d p

rep

aym

en

ts14

(35

)

Tax

loss

1 9

31

2 5

19

Inta

ng

ible

ass

ets

81

(1 2

05

)

Sale

of

sub

sid

iari

es

(1 0

41)

–

Tax

inclu

sio

n r

ate c

han

ge

–1

65

6

Bal

ance

at

the

en

d o

f th

e p

eri

od

22

711

17 2

83

De

ferr

ed

tax

co

mp

rise

s th

e f

ollo

win

g:

Receiv

able

s an

d p

rep

aym

en

ts(1

46

)(1

60

)

Inta

ng

ible

ass

ets

(14

5)

(1 5

88

)

De

ferr

ed

tax

liab

ility

(29

1)(1

74

8)

Fin

ancia

l ass

ets

at

fair

val

ue

10 6

63

6 0

58

No

n-t

rad

e p

ayab

les

and

accru

als

1 78

71

94

9

Tax

loss

10 5

52

11 0

24

De

ferr

ed

tax

ass

et

23

00

219

03

1

Ne

t d

efe

rre

d t

ax a

sse

ts2

2 7

1117

28

3

T

he d

irecto

rs b

elie

ve t

hat

th

e r

atio

nal

isat

ion

of

the G

rou

p’s

co

st b

ase w

ill e

nab

le t

he G

rou

p

to t

ake a

dva

nta

ge o

f th

e d

efe

rred

tax

ass

ets

as

at 3

1 A

ug

ust

20

13.

No

defe

rred

tax

was

pro

vid

ed

on

cap

ital

loss

es

amo

un

ting

to

R4

6,6

mill

ion

(2

012

: R

54

,3 m

illio

n)

and

reve

nu

e

loss

es

of

R5,

9 m

illio

n (

20

12:

R5,

9 m

illio

n).

20

13r

’00

02

012

R’0

00

19.

trad

e a

nd

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er

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les

Trad

e r

eceiv

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975

2 7

36

Pre

pay

men

ts a

nd

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osi

ts4

93

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0

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ther

receiv

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s in

clu

des

the p

roceed

s o

n th

e s

ale o

f P

ow

erb

et G

amin

g o

f R

30

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. Ple

ase r

efe

r to

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te 3

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All

of t

he a

bo

ve a

mo

un

ts fa

ll u

nd

er c

urr

en

t ass

ets

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e G

rou

p’s

exp

osu

re to

cre

dit

and

cu

rren

cy

risks

an

d im

pai

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ted

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tra

de a

nd

oth

er

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no

te 2

7.

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rren

tr

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60

day

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0 d

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bto

rs a

ge

ing

Trad

e r

eceiv

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20

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nt

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able

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visi

on

ag

ain

st

clie

nt

receiv

able

s(4

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1)(6

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)(7

70)

(812

)

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l2

80

20

04

84

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–9

75

* �53,

5%

of

this

bal

ance is

gre

ater

than

tw

o y

ear

s o

verd

ue.

T

here

are

no

tra

de r

eceiv

able

s im

pai

red

du

rin

g t

he c

urr

en

t ye

ar.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

20

13r

’00

02

012

R’0

00

20

.C

ash

an

d c

ash

eq

uiv

ale

nts

Cal

l dep

osi

t6

6

Ban

k b

alan

ces

3

3 7

22

36

06

7

Trad

ing

mar

gin

bro

kers

89

63

32

7 6

14

Cas

h a

nd

cas

h e

qu

ival

en

ts12

3 3

61

63

68

7

Ban

k o

verd

raft

(3 8

36

)–

Cas

h a

nd

cas

h e

qu

ival

en

ts in

th

e s

tate

me

nt

of c

ash

flo

ws

119

52

56

3 6

87

T

he G

rou

p’s

exp

osu

re t

o i

nte

rest

rat

e r

isk

and

a s

en

sitiv

ity a

nal

ysis

fo

r fin

ancia

l as

sets

an

d

liab

ilitie

s ar

e d

isclo

sed

in

no

te 2

7. T

he C

om

pan

y h

old

s R

30

1 m

illio

n (

20

12:

R16

0 m

illio

n)

of

clie

nt

fun

ds

wh

ich

are

no

t re

flecte

d o

n t

he s

tate

men

t o

f fin

ancia

l p

osi

tion

. T

hese

are

rest

ricte

d f

un

ds

and

are

no

t av

aila

ble

fo

r u

se b

y th

e e

ntit

y. In

clu

ded

in G

rou

p c

ash

an

d c

ash

eq

uiv

alen

ts a

re c

lien

t fu

nd

s h

eld

in

mar

gin

wh

ose

use

is

rest

ricte

d t

o h

ed

gin

g.

Th

e r

ela

ted

liab

ility

is in

clu

ded

un

der

clie

nt

fun

ds

liab

ility

in t

rad

e a

nd

oth

er

pay

able

s (s

ee n

ote

25

).

T

he G

rou

p h

as a

n o

verd

raft

fac

ility

to

talli

ng

R10

mill

ion

with

Merc

antil

e B

ank.

Th

e o

verd

raft

is s

ecu

red

by

a p

led

ge a

nd

cess

ion

ove

r in

vest

men

ts a

nd

un

limite

d s

ure

tysh

ip b

y P

urp

le

Cap

ital L

imite

d.

A

gu

aran

tee is

in p

lace o

ver

facili

ties

to t

he a

mo

un

t o

f R

59

7 6

00

(2

012

: R

82

2 0

00

) in

fav

ou

r

of

the le

sso

r o

f a

leas

e e

nte

red

into

by

the G

rou

p.

nu

mb

ero

f sh

ares

20

13

Nu

mb

er

of

shar

es

20

12

21.

Cap

ital

an

d r

ese

rve

sT

he n

um

ber

of

shar

es

in is

sue is

as

follo

ws:

Ord

inar

y sh

are

cap

ital

In is

sue a

t 1

Sep

tem

ber

82

0 6

55

02

28

18 2

92

02

2

Shar

e o

ptio

ns

exe

rcis

ed

(14

Dec 2

012

) (2

012

: 14

Dec 2

011

)4

00

00

04

00

00

0

Shar

es

issu

ed

– 1

4 D

ecem

ber

20

12

–1

96

3 0

00

Less

: C

ancelle

d s

har

es

(5 0

29

29

9)

–

In is

sue

at

31

Au

gu

st –

fu

lly p

aid

up

8

16 0

25

72

38

20

65

5 0

22

Less

: Tr

eas

ury

sh

ares

(45

0 0

00

)–

In is

sue

at

year

en

d

815

575

72

38

20

65

5 0

22

T

he m

ove

men

t in

sh

are c

apita

l an

d s

har

e p

rem

ium

is a

s fo

llow

s:

shar

e ca

pit

alr

’00

0

shar

ep

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ium

r’0

00

tota

lr

’00

0

Gro

up

Bal

ance a

t 1

Sep

tem

ber

20

118

18

2

46

7 17

4

475

35

6

Shar

e is

sue

25

5

94

6

19

Bal

ance

at

1 Se

pte

mb

er

20

12

8 2

07

46

7 76

8

475

975

Shar

e is

sue

48

48

8

Ow

n p

urc

has

ed

sh

ares*

(55

)(9

99

)(1

05

4)

Bal

ance

at

31

Au

gu

st 2

013

8

15

64

66

85

34

75 0

09

*

In t

he c

urr

en

t ye

ar, P

urp

le C

apita

l Lim

ited

bo

ug

ht

bac

k 5 0

29

29

9 o

f its

ow

n s

har

es

at a

n a

vera

ge p

rice

of

18,9

8 c

en

ts. T

he s

har

es

are im

med

iate

ly c

ancelle

d a

nd

rest

ore

d t

o a

uth

orise

d c

apita

l. G

lob

al T

rad

er

bo

ug

ht

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k 4

50

00

0 s

har

es,

at

an a

vera

ge p

rice o

f 0

,22 c

en

ts, in

th

e c

urr

en

t ye

ar w

hic

h a

re t

reas

ury

sh

ares

and

elim

inat

ed

on

co

nso

lidat

ion

.

A

t 31

Au

gu

st 2

013

, th

e a

uth

oris

ed

sh

are c

apita

l co

mp

rised

1 2

00

00

0 0

00

ord

inar

y sh

ares

of

R0

,01

eac

h (2

012

: 1 2

00

00

0 0

00

) an

d 1

7 6

59

610

“A” s

har

es

of R

0,0

1 eac

h (2

012

: 17

659

610

).

T

here

are

no

“A

” sh

ares

in is

sue. T

he h

old

ers

of

the r

igh

ts t

o t

he o

rdin

ary

shar

es

are e

ntit

led

to r

eceiv

e d

ivid

en

ds

fro

m t

ime t

o t

ime a

nd

are

en

title

d t

o o

ne v

ote

per

shar

e a

t m

eetin

gs

of

the C

om

pan

y. T

he h

old

ers

of

“A” sh

ares

are n

ot

en

title

d t

o r

eceiv

e d

ivid

en

ds

and

are

en

title

d

to o

ne v

ote

per

shar

e a

t m

eetin

gs

of

the C

om

pan

y.


nu

mb

ero

f sh

ares

20

13

Nu

mb

er

of

shar

es

20

12

21.

Cap

ital

an

d r

ese

rve

sT

he n

um

ber

of

shar

es

in is

sue is

as

follo

ws:

Ord

inar

y sh

are

cap

ital

In is

sue a

t 1

Sep

tem

ber

82

0 6

55

02

28

18 2

92

02

2

Shar

e o

ptio

ns

exe

rcis

ed

(14

Dec 2

012

) (2

012

: 14

Dec 2

011

)4

00

00

04

00

00

0

Shar

es

issu

ed

– 1

4 D

ecem

ber

20

12

–1

96

3 0

00

Less

: C

ancelle

d s

har

es

(5 0

29

29

9)

–

In is

sue

at

31

Au

gu

st –

fu

lly p

aid

up

8

16 0

25

72

38

20

65

5 0

22

Less

: Tr

eas

ury

sh

ares

(45

0 0

00

)–

In is

sue

at

year

en

d

815

575

72

38

20

65

5 0

22

T

he m

ove

men

t in

sh

are c

apita

l an

d s

har

e p

rem

ium

is a

s fo

llow

s:

shar

e ca

pit

alr

’00

0

shar

ep

rem

ium

r’0

00

tota

lr

’00

0

Gro

up

Bal

ance a

t 1

Sep

tem

ber

20

118

18

2

46

7 17

4

475

35

6

Shar

e is

sue

25

5

94

6

19

Bal

ance

at

1 Se

pte

mb

er

20

12

8 2

07

46

7 76

8

475

975

Shar

e is

sue

48

48

8

Ow

n p

urc

has

ed

sh

ares*

(55

)(9

99

)(1

05

4)

Bal

ance

at

31

Au

gu

st 2

013

8

15

64

66

85

34

75 0

09

*

In t

he c

urr

en

t ye

ar, P

urp

le C

apita

l Lim

ited

bo

ug

ht

bac

k 5 0

29

29

9 o

f its

ow

n s

har

es

at a

n a

vera

ge p

rice

of

18,9

8 c

en

ts. T

he s

har

es

are im

med

iate

ly c

ancelle

d a

nd

rest

ore

d t

o a

uth

orise

d c

apita

l. G

lob

al T

rad

er

bo

ug

ht

bac

k 4

50

00

0 s

har

es,

at

an a

vera

ge p

rice o

f 0

,22 c

en

ts, in

th

e c

urr

en

t ye

ar w

hic

h a

re t

reas

ury

sh

ares

and

elim

inat

ed

on

co

nso

lidat

ion

.

A

t 31

Au

gu

st 2

013

, th

e a

uth

oris

ed

sh

are c

apita

l co

mp

rised

1 2

00

00

0 0

00

ord

inar

y sh

ares

of

R0

,01

eac

h (2

012

: 1 2

00

00

0 0

00

) an

d 1

7 6

59

610

“A” s

har

es

of R

0,0

1 eac

h (2

012

: 17

659

610

).

T

here

are

no

“A

” sh

ares

in is

sue. T

he h

old

ers

of

the r

igh

ts t

o t

he o

rdin

ary

shar

es

are e

ntit

led

to r

eceiv

e d

ivid

en

ds

fro

m t

ime t

o t

ime a

nd

are

en

title

d t

o o

ne v

ote

per

shar

e a

t m

eetin

gs

of

the C

om

pan

y. T

he h

old

ers

of

“A” sh

ares

are n

ot

en

title

d t

o r

eceiv

e d

ivid

en

ds

and

are

en

title

d

to o

ne v

ote

per

shar

e a

t m

eetin

gs

of

the C

om

pan

y.

NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

21.

C

apit

al a

nd

re

serv

es

co

ntin

ued

T

he u

nis

sued

sh

ares

were

pla

ced

un

der

the c

on

tro

l an

d a

uth

ori

ty o

f th

e d

irecto

rs u

ntil

th

e

next

an

nu

al g

en

era

l m

eetin

g,

and

th

ey

hav

e b

een

em

po

were

d t

o a

llot,

iss

ue o

r o

therw

ise

dis

po

se o

f th

e s

har

es

as th

ey

may

in th

eir

dis

cre

tion

deem

fit,

su

bje

ct to

th

e p

rovi

sio

ns

of th

e

Co

mp

anie

s A

ct

and

th

e L

istin

gs

Req

uirem

en

ts o

f th

e J

SE. T

he G

rou

p h

as a

lso

issu

ed

sh

are

op

tion

s to

key

man

agem

en

t (s

ee n

ote

24

).

7

32

9 2

99

(2

012

: 1

85

0 0

00

) at

an

ave

rag

e p

rice o

f 0

,18

17 c

en

ts s

har

es

in P

urp

le C

apita

l are

held

by

Pu

rple

Cap

ital a

nd

Glo

bal

Tra

der

and

are

elim

inat

ed

on

co

nso

lidat

ion

.

O

the

r re

serv

es

20

13r

’00

02

012

R’0

00

Fore

ign

cu

rren

cy

tran

slat

ion

rese

rve*

(5 4

84

)(4

63

7)

Shar

e-b

ased

pay

men

t re

serv

e2

2 6

98

20

717

Ava

ilab

le-f

or-

sale

rese

rve

–2

Oth

er

rese

rves

(incre

ase in

Po

werb

et

shar

eh

old

ing

)#–

(1 1

92

)

Bal

ance

31

Au

gu

st 1

7 2

14

14 8

90

* Fo

reig

n c

urr

en

cy

tran

slat

ion

rese

rve is

th

e r

ese

rve c

reat

ed

on

tr

ansl

atio

n o

f fo

reig

n o

pera

tion

s.# O

ther

rese

rves

com

pris

e t

he s

tep

-acq

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itio

n o

f 10

0%

of

Po

werb

et

Gam

ing P

rop

rieta

ry L

imite

d w

hic

h h

as b

een

tak

en

to

re

tain

ed

ear

nin

gs

up

on

sal

e o

f th

e s

ub

sid

iary

in t

he c

urr

en

t ye

ar.

22

.E

arn

ing

s p

er

shar

eB

asic

ear

nin

gs

pe

r sh

are

Th

e c

alcu

latio

n o

f b

asic

an

d h

ead

line e

arn

ing

s p

er

shar

e a

t

31

Au

gu

st 2

013

was

bas

ed

on

a G

rou

p p

rofit

att

ribu

tab

le t

o

ord

inar

y sh

areh

old

ers

of

R2,3

mill

ion

(20

12: p

rofit

of

R3,

9 m

illio

n),

a h

ead

line lo

ss p

er

shar

e o

f R

18,4

mill

ion

(20

12: p

rofit

of

R3,

9 m

illio

n) a

nd

a w

eig

hte

d a

vera

ge

nu

mb

er

of

ord

inar

y sh

ares

ou

tsta

nd

ing

du

ring

th

e y

ear

en

ded

31

Au

gu

st 2

013

of

819

927

933 (2

012

: 8

19 9

81

830

),

calc

ula

ted

as

follo

ws:

Pro

fit

attr

ibu

tab

le t

o o

rdin

ary

shar

eh

old

ers

Pro

fit f

or

the p

eri

od

2

26

53

94

8

He

adlin

e (

loss

)/p

rofi

t fo

r th

e p

eri

od

(1

8 4

19)

3 9

48

20

13r

’00

02

012

R’0

00

22

.E

arn

ing

s p

er

shar

e c

on

tinu

ed

We

igh

ted

ave

rag

e n

um

be

r o

f o

rdin

ary

shar

es

Issu

ed

ord

inar

y sh

ares

at 1

Sep

tem

ber

82

0 6

55

02

28

18 2

92

02

2

Eff

ect

of

shar

es

issu

ed

fo

r cas

h

28

4 9

32

1 6

89

80

8

Eff

ect

of

treas

ury

sh

ares

(1 2

33

)–

Eff

ect

of

can

celle

d s

har

es

(1 0

10 7

88

)–

We

igh

ted

ave

rag

e n

um

be

r o

f o

rdin

ary

shar

es

at

31

Au

gu

st

819

92

7 9

33

819

98

1 8

30

Bas

ic p

rofit

per

shar

e (

cen

ts)

0,2

80

,48

Head

line (

loss

)/p

rofit

per

shar

e (

cen

ts)

(2,2

5)

0,4

8

He

adlin

e e

arn

ing

s h

ave

be

en

co

mp

ute

d a

s fo

llow

s:

Pro

fit a

ttri

bu

tab

le t

o o

rdin

ary

shar

eh

old

ers

2 2

65

3 9

48

Recla

ssifi

cat

ion

of

avai

lab

le-f

or-

sale

fin

ancia

l ass

ets

(44

)–

Imp

airm

en

t o

f in

vest

men

ts in

ass

ocia

tes,

net

of

tax

1 0

73–

Ad

just

men

t fo

r p

rofit

on

sal

e o

f d

isco

ntin

ued

op

era

tion

(21

713

)–

Head

line e

arn

ing

s(1

8 4

19)

3 9

48

Dilu

ted

ear

nin

gs

pe

r sh

are

Th

e c

alcu

latio

n o

f d

ilute

d e

arn

ing

s an

d d

ilute

d h

ead

line

loss

per

shar

e a

s at

31

Au

gu

st 2

013

was

bas

ed

on

a G

rou

p

pro

fit a

ttrib

uta

ble

to

ord

inar

y sh

areh

old

ers

of

R2,3

mill

ion

(2

012

: p

rofit

of

R3,

9 m

illio

n),

a h

ead

line lo

ss p

er

shar

e o

f R

18,4

mill

ion

(20

12: p

rofit

of

R3,

9 m

illio

n) a

nd

a d

ilute

d

weig

hte

d a

vera

ge n

um

ber

of

ord

inar

y sh

ares

ou

tsta

nd

ing

d

urin

g t

he y

ear

en

ded

31

Au

gu

st 2

013

of

850

131

88

5

(20

12: 8

57

80

0 5

06

), ca

lcu

late

d a

s fo

llow

s:

Pro

fit

attr

ibu

tab

le t

o o

rdin

ary

shar

eh

old

ers

(d

ilute

d)

Pro

fit a

ttri

bu

tab

le t

o o

rdin

ary

shar

eh

old

ers

(d

ilute

d)

2 2

65

3 9

48

We

igh

ted

ave

rag

e n

um

be

r o

f o

rdin

ary

shar

es

(dilu

ted

)

Weig

hte

d a

vera

ge n

um

ber

of

ord

inar

y sh

ares

at 3

1 A

ug

ust

8

19 9

27

93

38

19 9

81

83

0

Eff

ect

of

shar

e o

ptio

ns

in is

sue

30

20

3 9

52

37

818

676

Weig

hte

d a

vera

ge n

um

ber

of

ord

inar

y sh

ares

(dilu

ted

) at

31

Au

gu

st

85

0 1

31

88

58

57

80

0 5

06

Dilu

ted

pro

fit p

er

shar

e (

cen

ts)

0,2

70

,46

Dilu

ted

head

line (

loss

)/p

rofit

per

shar

e (

cen

ts)

(2,1

7)0

,46


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

20

13r

’00

02

012

R’0

00

22

.E

arn

ing

s p

er

shar

e c

on

tinu

ed

Co

nti

nu

ing

op

era

tio

ns

ear

nin

gs

pe

r sh

are

Th

e c

alcu

latio

n o

f co

ntin

ued

ear

nin

gs

per

shar

e a

t

31

Au

gu

st 2

013

was

bas

ed

on

a G

rou

p lo

ss f

rom

co

ntin

ued

op

era

tion

s o

f R

2,1

mill

ion

(20

12:

pro

fit o

f

R17

,6 m

illio

n) an

d a

weig

hte

d a

vera

ge n

um

ber

of

ord

inar

y

shar

es

ou

tsta

nd

ing

du

rin

g t

he y

ear

en

ded

31

Au

gu

st 2

013

of

819

927

933 (20

12:

819

98

1 8

30

), cal

cu

late

d a

s fo

llow

s:

(Lo

ss)/

pro

fit f

or

the p

eri

od

(2

13

8)

17 6

63

Weig

hte

d a

vera

ge n

um

ber

of

ord

inar

y sh

ares

at 3

1 A

ug

ust

8

19 9

27

93

38

19 9

81

83

0

Bas

ic (

loss

)/p

rofit

per

shar

e f

rom

co

ntin

ued

op

era

tion

s (c

en

ts)

(0

,26

)2

,15

Dilu

ted

(lo

ss)/

pro

fit p

er

shar

e (

cen

ts)

(0

,25

)2

,06

Dilu

ted

head

line (

loss

)/p

rofit

per

shar

e (

cen

ts)

(2

,17)

0,4

6

Dis

con

tin

ue

d o

pe

rati

on

s e

arn

ing

s p

er

shar

e

Th

e c

alcu

latio

n o

f d

isco

ntin

ued

ear

nin

gs

per

shar

e

at 3

1 A

ug

ust

20

13 w

as b

ased

on

a G

rou

p p

rofit

fro

m

dis

co

ntin

ued

op

era

tion

s o

f R

4,4

mill

ion

(2

012

: lo

ss o

f

R14

,4 m

illio

n) an

d a

weig

hte

d a

vera

ge n

um

ber

of

ord

inar

y

shar

es

ou

tsta

nd

ing

du

rin

g t

he y

ear

en

ded

31

Au

gu

st

20

13 o

f 8

19 9

27

93

3 (

20

12:

819

98

1 8

30

), cal

cu

late

d a

s

follo

ws:

Pro

fit/(

loss

) fo

r th

e p

eri

od

4

40

3(1

4 4

49

)

Weig

hte

d a

vera

ge n

um

ber

of

ord

inar

y sh

ares

at 3

1 A

ug

ust

8

19 9

27

93

38

19 9

81

83

0

Bas

ic p

rofit

/(lo

ss)

per

shar

e f

rom

dis

co

ntin

ued

op

era

tion

s (c

en

ts)

0,5

4(1

,76

)

Dilu

ted

pro

fit/(

loss

) p

er

shar

e (

cen

ts)

0,5

2(1

,68

)

Dilu

ted

head

line (

loss

) p

er

shar

e (

cen

ts)

(2,1

7)0

,46

Th

ere

are

cu

rren

tly

76,3

mill

ion

(2

012

: 12

5,1

mill

ion

) sh

are o

ptio

ns

in i

ssu

e i

n t

erm

s o

f th

e

Gro

up

’s s

har

e in

cen

tive s

ch

em

e (

see n

ote

24

) o

f w

hic

h 5

6,1

mill

ion

are

exe

rcis

able

.

20

13r

’00

02

012

R’0

00

23

.lo

ans

and

bo

rro

win

gs

Th

is n

ote

pro

vid

es

info

rmat

ion

reg

ard

ing

th

e G

rou

p’s

inte

rest

-bear

ing

bo

rro

win

gs

that

are

meas

ure

d a

t

amo

rtis

ed

co

st. F

or

mo

re in

form

atio

n o

n t

he G

rou

p’s

exp

osu

re t

o in

tere

st r

ate a

nd

liq

uid

ity r

isk

see n

ote

27.

No

n-c

urr

en

t lia

bili

tie

s

Secu

red

ban

k lo

ans

–1

731

Cu

rre

nt

liab

iliti

es

Secu

red

ban

k lo

ans

7 5

147

53

0

Wip

Cap

ital s

har

eh

old

er

loan

s –

28

4

7 5

147

814

Tota

l lo

ans

and

bo

rro

win

gs

7 5

149

54

5

T

he t

erm

s an

d c

on

diti

on

s o

f th

e o

uts

tan

din

g lo

ans

are a

s fo

llow

s:

20

13

20

12

No

min

alin

tere

st r

ate

Ye

ar o

f m

atu

rity

Car

ryin

g

valu

e r

’00

0

Face

va

lue

r’0

00

Car

ryin

g

valu

eR

’00

0

Face

va

lue

R’0

00

Secu

red

ban

k lo

an

Pri

me +

1%2

013

7

514

7 5

179

26

1 9

40

4

Wip

Cap

ital

Shar

eh

old

er

loan

* P

rim

e p

lus

5%

2

013

–

–2

84

2

84

T

he a

bo

ve l

oan

s ar

e s

ecu

red

ag

ain

st P

urp

le C

apita

l’s o

ther

inve

stm

en

ts a

nd

in

tere

sts

in

sub

sid

iari

es.

*

Th

e c

arry

ing

val

ue is

th

e a

mo

un

t o

f th

e lo

an b

ased

on

th

e a

mo

rtis

ed

co

st a

t th

e e

ffectiv

e in

tere

st r

ate.

*

Th

e f

ace v

alu

e is

th

e a

mo

un

t o

f th

e lo

an a

cco

rdin

g t

o t

he lo

an t

erm

s at

Prim

e r

ate p

lus

1%.

In

term

s o

f th

e e

xist

ing

loan

co

ven

ants

, th

e d

eb

t eq

uity

rat

io o

f th

e G

rou

p m

ust

no

t exc

eed

100

%. T

he G

rou

p h

as c

om

plie

d w

ith t

his

.

Se

curi

ty

U

nlim

ited

cess

ion

o

n

the

net

pro

ceed

s fr

om

th

e

sale

o

f B

lockb

ust

er

Trad

ing

3

Pro

pri

eta

ry L

imite

d.

Un

limite

d s

ure

ty b

y al

l co

mp

anie

s in

th

e G

rou

p.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

24

. s

har

e-b

ase

d p

aym

en

ts

Shar

e-b

ase

d p

aym

en

t e

xpe

nse

s

O

n 1

Feb

ruar

y 2

00

5, a

new

em

plo

yee s

har

e o

ptio

n s

ch

em

e w

as in

tro

du

ced

by

app

rova

l at

the g

en

era

l m

eetin

g o

f th

e C

om

pan

y. T

he t

erm

s an

d c

on

diti

on

s o

f th

e o

ptio

ns,

as

well

as

deta

ils o

f th

e o

ptio

ns

gra

nte

d, a

re a

s fo

llow

s:

Op

tio

ns

gra

nte

d t

o k

ey

man

age

me

nt

nu

mb

er

of

op

tio

ns

Tota

l at

31

Au

gu

st 2

010

8

2 2

74 0

00

Issu

ed

1 O

cto

ber

20

10

1 6

00

00

0

Issu

ed

17

No

vem

ber

20

10

17 0

00

00

0

Tota

l at

31

Au

gu

st 2

011

100

874

00

0

Exe

rcis

ed

1 N

ove

mb

er

20

11

(40

0 0

00

)

Exp

ired

21

Feb

ruar

y 2

012

(5 3

34

00

0)

Issu

ed

27

Feb

ruar

y 2

012

30

00

0 0

00

Tota

l at

31

Au

gu

st 2

012

12

5 1

40

00

0

Exe

rcis

ed

6 D

ecem

ber

20

12(4

00

00

0)

Exp

ired

23

Ap

ril 2

013

(4 5

72 0

00

)

Forf

eitu

re 3

1 A

ug

ust

20

13(4

3 8

54

50

0)

Tota

l at

31

Au

gu

st 2

013

76 3

13 5

00

T

he v

est

ing

co

nd

itio

ns

of

all t

he o

ptio

ns

gra

nte

d t

o d

ate a

re:

Up

to

25%

on

or

afte

r th

e fi

rst

ann

ivers

ary

dat

e o

f ac

cep

tan

ce o

f th

e o

ptio

ns;

Up

to

50

% o

n o

r af

ter

the s

eco

nd

an

niv

ers

ary

of

the a

ccep

tan

ce d

ate;

Up

to

75%

on

or

afte

r th

e t

hird

an

niv

ers

ary

dat

e;

and

Up

to

10

0%

on

or

afte

r th

e f

ou

rth

an

niv

ers

ary

dat

e.

T

he c

on

trac

tual

life

of

all o

ptio

ns

is s

eve

n y

ear

s fr

om

dat

e o

f g

ran

t.

24

. s

har

e-b

ase

d p

aym

en

ts c

on

tinu

ed

T

he o

ptio

ns

gra

nte

d t

o d

irecto

rs a

re:

nu

mb

er

of

op

tio

ns

20

13

Nu

mb

er

of

op

tio

ns

20

12

Mar

k B

arn

es

30

24

5 0

00

34

817

00

0

Ch

arle

s Sa

vag

e

14 0

00

00

014

00

0 0

00

Mik

e W

ilso

n

–

16 5

40

00

0

Gar

y va

n D

yk10

76

8 5

00

10 7

68

50

0

55

013

50

0

76 1

25

50

0

Sh

are

-bas

ed

pay

me

nt

exp

en

ses

20

132

012

wei

gh

ted

aver

age

exer

cise

pri

ce(c

ents

)n

um

ber

of

op

tio

ns

We

igh

ted

ave

rag

ee

xerc

ise

pri

ce(c

en

ts)

Nu

mb

er

of

op

tio

ns

Ou

tsta

nd

ing

at

the

be

gin

nin

g

of

the

pe

rio

d2

012

5 1

40

00

02

010

0 8

74 0

00

Gra

nte

d d

uri

ng

th

e p

eri

od

–24

30

00

0 0

00

Exe

rcis

ed

du

rin

g t

he p

eri

od

22

(40

0 0

00

)–

(40

0 0

00

)

Exp

ired

du

rin

g t

he p

eri

od

30

(4 5

72 0

00

)3

0(5

33

4 0

00

)

Forf

eite

d d

uri

ng

th

e p

eri

od

19(4

3 8

54

50

0)

––

Ou

tsta

nd

ing

at

the

en

d o

f th

e

pe

rio

d19

76 3

13 5

00

20

125

14

0 0

00

Exe

rcis

able

at

the

en

d o

f th

e

pe

rio

d19

56

10

1 0

00

20

62

39

0 0

00

T

he o

ptio

ns

ou

tsta

nd

ing

at

31

Au

gu

st 2

013

hav

e b

een

issu

ed

in a

pric

e r

ang

e f

rom

15 c

en

ts

to 3

0 c

en

ts a

nd

hav

e a

weig

hte

d a

vera

ge e

xerc

ise p

rice o

f 19

cen

ts (

20

12:

20

cen

ts)

and

a

weig

hte

d a

vera

ge c

on

trac

tual

life

of

3,4

0 y

ear

s (2

012

: 4,3

4 y

ear

s).

40

0 0

00

sh

ares

were

exe

rcis

ed

du

ring

th

e y

ear

at

22 c

en

ts.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

24

. s

har

e-b

ase

d p

aym

en

ts c

on

tinu

ed

N

o a

dd

itio

nal

op

tion

s w

ere

gra

nte

d o

r ac

cep

ted

du

rin

g t

he y

ear

. T

he e

stim

ate o

f th

e f

air

valu

e o

f th

e o

ptio

ns

gra

nte

d in

20

12 w

as m

eas

ure

d o

n a

mo

difi

ed

bin

om

ial t

ree m

od

el.

Th

e

co

ntr

actu

al li

fe o

f th

e o

ptio

n (

seve

n y

ear

s) is

use

d a

s an

inp

ut

into

th

is m

od

el.

Exp

ecta

tion

s o

f ear

ly e

xerc

ise a

re in

co

rpo

rate

d.

20

132

012

Ke

y m

anag

em

en

t p

ers

on

ne

l

Fair

val

ue a

t is

sue d

ate

(R’0

00

)–

3 5

46

Ass

um

pti

on

s

Weig

hte

d a

vera

ge s

har

e p

rice

(cen

ts)

–24

Weig

hte

d a

vera

ge e

xerc

ise p

rice

(cen

ts)

–24

Exp

ecte

d v

ola

tility

(exp

ress

ed

as

weig

hte

d

avera

ge v

ola

tility

use

d u

nd

er

the m

od

ified

bin

om

ial t

ree m

od

el)

(%)

–4

0,0

Op

tion

life

(year

s)–

7

Ris

k-fr

ee r

ate

(%)

–6

,6

Exp

ecte

d d

ivid

en

ds

(%)

––

T

he e

xpecte

d v

ola

tility

is b

ased

on

th

e h

isto

ric v

ola

tility

(cal

cu

late

d b

ased

on

th

e w

eig

hte

d

avera

ge r

em

ain

ing

life

of

the s

har

e o

ptio

ns)

, ad

just

ed

fo

r an

y exp

ecte

d c

han

ges

to f

utu

re

vola

tility

du

e t

o p

ub

licly

ava

ilab

le in

form

atio

n.

Sh

are o

ptio

ns

are g

ran

ted

un

der

a se

rvic

e c

on

diti

on

. Th

is c

on

diti

on

is n

ot ta

ken

into

acco

un

t in

th

e g

ran

t d

ate f

air

valu

e m

eas

ure

men

t o

f th

e s

erv

ices

receiv

ed

. T

here

are

no

mar

ket

co

nd

itio

ns

asso

cia

ted

with

th

e s

har

e o

ptio

n g

ran

ts.

20

13r

’00

02

012

R’0

00

25

.tr

ade

an

d o

the

r p

ayab

les

Trad

e p

ayab

les

12

4 0

44

58

94

2

Oth

er

pay

able

s an

d a

ccru

ed

exp

en

ses

8 7

09

3

02

0

Em

plo

yee r

ela

ted

2 1

28

6

75

4

13

4 8

81

68

716

Th

e G

rou

p’s

exp

osu

re t

o c

urr

en

cy

and

liq

uid

ity r

isk

rela

ted

to

tra

de a

nd

oth

er

pay

able

s is

dis

clo

sed

in n

ote

27.

20

13r

’00

02

012

R’0

00

26

.p

rovi

sio

ns

Leav

e p

ay p

rovi

sio

n1

69

72

29

7

Mo

vem

en

t in

leav

e p

ay p

rovi

sio

n

Op

en

ing

bal

ance

2 2

97

2 1

09

Sale

of

sub

sid

iari

es

(42

8)

–

Leav

e p

ay r

aise

d1

99

72

03

8

Leav

e p

ay u

tilis

ed

(2 1

69

)(1

85

0)

Clo

sin

g b

alan

ce1

69

72

29

7

Pro

visi

on

fo

r le

ave p

ay is

exp

ecte

d t

o r

eal

ise in

th

e n

ext

12

mo

nth

s.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

27.

Fi

nan

cial

inst

rum

en

ts

Cre

dit

ris

k

E

xpo

sure

to

cre

dit

ris

k

T

he c

arry

ing

am

ou

nt

of

finan

cia

l ass

ets

rep

rese

nts

th

e m

axim

um

cre

dit

exp

osu

re.

T

he m

axim

um

exp

osu

re t

o c

red

it ri

sk a

t th

e r

ep

ort

ing

dat

e w

as:

No

tes

20

13r

’00

02

012

R’0

00

Ava

ilab

le-f

or-

sale

fin

ancia

l ass

ets

16–

64

Lon

g-t

erm

receiv

able

s17

118

1 10

2

Fin

ancia

l ass

ets

at

amo

rtis

ed

co

st16

1 14

31

137

Loan

s an

d r

eceiv

able

s19

33

08

03

15

4

Cas

h a

nd

cas

h e

qu

ival

en

ts2

011

9 5

25

63

68

7

153

86

66

9 1

44

T

he m

axim

um

exp

osu

re t

o c

red

it ri

sk f

or

loan

s an

d r

eceiv

able

s at

th

e r

ep

ort

ing

dat

e

was

in

So

uth

Afr

ica.

Pu

rple

Cap

ital’s

on

ly r

eceiv

able

s ar

e w

ith a

few

lar

ge c

orp

ora

tes

that

m

anag

em

en

t d

eal

s w

ith d

irectly.

In

Glo

bal

Tra

der

cre

dit

risk

is

the r

isk

of

finan

cia

l lo

ss i

f th

e c

ou

nte

rpar

ty f

ails

to

meet

its

co

ntr

actu

al

ob

ligat

ion

s.

Th

ese

co

nsi

st

pri

ncip

ally

o

f u

nse

ttle

d

trad

es

with

b

roki

ng

co

un

terp

artie

s an

d c

ust

om

ers

. Fi

nan

cia

l as

sets

wh

ich

po

ten

tially

su

bje

ct

Glo

bal

Tra

der

to

co

ncen

trat

ion

s o

f cre

dit

risk

co

nsi

st p

rin

cip

ally

of

amo

un

ts o

win

g d

ue t

o u

nse

ttle

d t

rad

es

with

bro

kin

g c

ou

nte

rpar

ties

and

are

lim

ited

to

hig

h c

red

it q

ual

ity fi

nan

cia

l in

stitu

tion

s. T

he

max

imu

m c

red

it ri

sk e

xpo

sure

is

rep

rese

nte

d b

y th

e c

arry

ing

am

ou

nt

of

the a

ssets

, exc

ep

t w

here

oth

erw

ise s

tate

d.

At

year

en

d n

o a

mo

un

ts a

re p

ast

du

e.

All

trad

es

are s

ett

led

dai

ly

thro

ug

h t

he m

ark-

to-m

arke

t p

rocess

.

G

lob

al T

rad

er’s

cre

dit

po

licy

is s

et

by

the b

oar

d o

n a

dvi

ce f

rom

th

e r

isk

man

agem

en

t co

mm

ittee, t

hey

are r

esp

on

sib

le f

or:

form

ula

ting

th

e p

rin

cip

les

and

gu

idelin

es

on

sett

ing

co

un

terp

arty

an

d p

rod

uct

limits

, ap

pro

vin

g t

ran

sactio

ns

with

cre

dit

risk

an

d e

xcess

ap

pro

vals

, cas

h e

qu

ity t

rad

ing

an

d

pri

me b

roki

ng

exp

osu

res.

Th

e p

urp

ose

of

these

po

licie

s is

to

art

icu

late

th

e m

inim

um

st

and

ard

fo

r cre

dit

acro

ss t

he fi

rm a

nd

to

defin

e t

he r

ole

s an

d r

esp

on

sib

ilitie

s n

ecess

ary

for

the m

anag

em

en

t o

f cre

dit

on

a t

imely

, accu

rate

an

d c

om

ple

te b

asis

;

sett

ing

cas

h e

qu

ity tr

adin

g p

olic

y, th

is a

dd

ress

es

the r

isk

of c

ash

trad

ing

with

a s

ett

lem

en

t cyc

le o

f T

+5

; an

d

exc

ess

man

agem

en

t is

th

e r

esp

on

sib

ility

of

Ris

k M

anag

em

en

t.

A

n im

pai

rmen

t of R

1 3

19 7

52

was

rais

ed

ag

ain

st in

vest

men

ts in

ass

ocia

tes

as th

e re

co

vera

bili

ty

of

the lo

an is

lin

ked

to

th

e v

alu

e o

f R

eal

Peo

ple

Inve

stm

en

t H

old

ing

s P

rop

rieta

ry L

imite

d.

27.

Fi

nan

cial

inst

rum

en

ts c

on

tinu

ed

Li

qu

idit

y ri

sk

T

he

follo

win

g

are

the

co

ntr

actu

al

mat

uri

ties

of

finan

cia

l lia

bili

ties,

in

clu

din

g

est

imat

ed

inte

rest

pay

men

ts a

s at

31

Au

gu

st 2

013

:

No

tes

Car

ryin

gam

ou

nt

r’0

00

Co

ntr

actu

alca

sh fl

ow

sr

’00

0

on

e

year

r’0

00

two

to

five

yea

rsr

’00

0to

tal

r’0

00

Secu

red

loan

s2

37

514

7 5

147

514

–7

514

Trad

e a

nd

oth

er

pay

able

s2

512

4 0

44

124

04

412

4 0

44

–12

4 0

44

131

55

813

1 5

58

131

55

8–

131

55

8

T

he f

ollo

win

g w

ere

th

e c

on

trac

tual

mat

uri

ties

of

finan

cia

l lia

bili

ties,

in

clu

din

g e

stim

ated

in

tere

st p

aym

en

ts a

s at

31

Au

gu

st 2

012

:

No

tes

Car

ryin

gam

ou

nt

r’0

00

Co

ntr

actu

alca

sh fl

ow

sr

’00

0

on

eye

arr

’00

0

two

to

five

yea

rsr

’00

0to

tal

r’0

00

Secu

red

loan

s2

39

54

59

68

87

782

1 9

06

9 6

88

Trad

e a

nd

oth

er

pay

able

s2

55

8 9

42

58

94

25

8 9

42

–5

8 9

42

68

48

76

8 6

30

66

724

1 9

06

68

63

0

T

he G

rou

p m

anag

es

this

exp

osu

re t

hro

ug

h e

nsu

ring

th

ere

are

ad

eq

uat

e c

on

trac

ted

ove

rdra

ft

faci

litie

s av

aila

ble

to

co

ver

any

defic

it b

etw

een

cu

rren

t as

sets

an

d li

abili

ties.

In

clu

ded

in t

rad

e

pay

able

s ar

e c

lien

t fu

nd

s o

n m

arg

in o

f R

123,

1 m

illio

n (2

012

: R

58

,4 m

illio

n).

C

urr

en

cy r

isk

E

xpo

sure

to

cu

rre

ncy

ris

k

T

he G

rou

p’s

exp

osu

re to

fore

ign

cu

rren

cy r

isk

is rest

ricte

d to

cert

ain

exp

en

ses

den

om

inat

ed

in

fore

ign

cu

rren

cies.

Th

ese

are

hed

ged

th

rou

gh

fo

rwar

d e

xch

ang

e c

on

trac

ts w

hen

nece

ssar

y.

A

ll o

f G

lob

al T

rad

er’s

pro

du

cts

bas

ed

on

off

-sh

ore

un

derl

yin

g it

em

s ar

e R

and

-sett

led

. T

here

is

no

fo

reig

n e

xch

ang

e r

isk

on

tra

din

g o

f fo

reig

n in

stru

men

ts.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

27.

Fi

nan

cial

inst

rum

en

ts c

on

tinu

ed

In

tere

st r

ate

ris

k

Pro

file

A

t th

e re

po

rtin

g d

ate th

e in

tere

st ra

te p

rofil

e o

f th

e G

rou

p’s

inte

rest

-bear

ing

fin

anci

al in

stru

men

ts

was

:

No

tes

Inte

rest

rate

sap

plic

able

Car

ryin

g

amo

un

t2

013

r’0

00

Car

ryin

g

amo

un

t2

012

R’0

00

Var

iab

le r

ate

inst

rum

en

ts

Fin

ancia

l ass

ets

16

, 17

Pri

me

1 2

61

2 2

39

Cas

h a

nd

cas

h

eq

uiv

alen

ts2

0D

aily

cal

l rat

e12

3 3

61

63

68

7

Fin

ancia

l lia

bili

ties

23

Pri

me +

1%(7

514

)(9

54

5)

Ove

rdra

ft2

0P

rim

e(3

83

6)

–

Fa

ir v

alu

e s

en

siti

vity

an

alys

is f

or

fixe

d r

ate

inst

rum

en

ts

T

he G

rou

p d

oes

no

t h

ave a

ny

fixed

rat

e fi

nan

cia

l as

sets

an

d l

iab

ilitie

s at

fai

r va

lue t

hro

ug

h

pro

fit o

r lo

ss a

nd

th

ere

fore

a c

han

ge in

inte

rest

rat

es

at t

he r

ep

ort

ing

dat

e w

ou

ld n

ot

affect

pro

fit o

r lo

ss.

27.

Fi

nan

cial

inst

rum

en

ts c

on

tinu

ed

In

tere

st r

ate

ris

k

C

ash

flo

w s

en

siti

vity

an

alys

is f

or

vari

able

rat

e in

stru

me

nts

A

ch

ang

e o

f 10

0 b

asis

po

ints

in

in

tere

st r

ates

at t

he r

ep

ort

ing

dat

e w

ou

ld h

ave i

ncre

ased

/

(decre

ased

) p

rofit

or

loss

by

the a

mo

un

ts s

ho

wn

belo

w. T

his

an

alys

is a

ssu

mes

that

all

oth

er

vari

able

s re

mai

n c

on

stan

t. T

he a

nal

ysis

is p

erf

orm

ed

on

th

e s

ame b

asis

fo

r 2

012

.

20

13p

rofi

t o

r lo

ss2

012

Pro

fit

or

loss

100

bp

incr

ease

r’0

00

100

bp

dec

reas

er

’00

0

100

bp

incr

eas

eR

’00

0

100

bp

de

cre

ase

R’0

00

Var

iab

le r

ate in

stru

men

ts

Fin

ancia

l ass

ets

10

(10

)11

(11

)

Fin

ancia

l lia

bili

ties

84

(83

)15

5

(15

2)

94

(93

)16

6

(16

3)

P

rice

ris

k

G

lob

al T

rad

er

pu

rch

ases

and

sells

deri

vativ

es

in t

he o

rdin

ary

co

urs

e o

f b

usi

ness

an

d in

cu

rs

finan

cia

l lia

bili

ties

in o

rder

to m

anag

e m

arke

t ri

sks.

All

such

tra

nsa

ctio

ns

are c

arri

ed

ou

t

with

in t

he g

uid

elin

es

set

by

the r

isk

man

agem

en

t co

mm

ittee.

M

anag

em

en

t o

f p

rice

ris

k

T

he p

rin

cip

al t

oo

l use

d t

o m

eas

ure

an

d c

on

tro

l mar

ket

risk

exp

osu

re w

ithin

Glo

bal

Tra

der’s

trad

ing

po

rtfo

lios

is v

alu

e a

t ri

sk (V

aR).

Th

e V

aR o

f a

po

rtfo

lio is

th

e m

axim

um

loss

th

at c

ou

ld

aris

e o

n a

giv

en

co

nfid

en

ce le

vel.

Th

e V

aR m

od

el u

sed

by

Glo

bal

Tra

der

is b

ased

on

a 9

5%

co

nfid

en

ce le

vel a

nd

ass

um

es

a tw

en

ty-o

ne d

ay h

old

ing

peri

od

. Th

e V

aR m

od

el i

s b

ased

on

his

tori

cal

sim

ula

tion

usi

ng

mar

ket

dat

a fr

om

th

e la

st 2

50

tra

din

g d

ays

with

a m

axim

um

tim

e

lag

of

on

e m

on

th.

A

lth

ou

gh

VaR

is

an i

mp

ort

ant

too

l fo

r m

eas

uri

ng

an

d m

anag

ing

Glo

bal

Tra

der’s

exp

osu

re

to m

arke

t ri

sk,

there

are

cert

ain

lim

itatio

ns

du

e t

o t

he a

ssu

mp

tion

s o

n w

hic

h t

he m

od

el

is

bas

ed

.

T

his

in

clu

des

the u

se o

f h

isto

rical

dat

a as

a b

asis

fo

r d

ete

rmin

ing

th

e p

oss

ible

ran

ge o

f

futu

re o

utc

om

es

that

may

no

t al

way

s co

ver

all

po

ssib

le s

cen

ario

s, e

specia

lly t

ho

se o

f an

exc

ep

tion

al n

atu

re.


27.

Fi

nan

cial

inst

rum

en

ts c

on

tinu

ed

P

rice

ris

k co

ntin

ued

M

anag

em

en

t o

f p

rice

ris

k co

ntin

ued

G

lob

al T

rad

er

use

s V

aR a

nal

ysis

fo

r th

e m

eas

ure

men

t an

d m

anag

em

en

t o

f m

arke

t ri

sk. T

he

VaR

lim

its a

re d

ete

rmin

ed

at

a m

anag

em

en

t le

vel a

nd

are

su

bje

ct

to r

evi

ew

an

d a

pp

rova

l by

the r

isk

man

agem

en

t co

mm

ittee. V

aR lim

its a

re a

llocat

ed

to

eac

h t

rad

ing

po

rtfo

lio a

nd

are

meas

ure

d a

nd

mo

nito

red

on

an

in

tra-

day

bas

is.

Dai

ly V

aR r

ep

ort

s ar

e s

ub

mitt

ed

to

sen

ior

man

agem

en

t fo

r re

view

.

A

su

mm

ary

of

the V

aR p

osi

tion

of

the C

om

pan

y’s

trad

ing

po

rtfo

lio a

t 3

1 A

ug

ust

an

d d

uri

ng

the p

eri

od

is a

s fo

llow

s:

at

31

au

gu

str

’00

0

ave

rag

e r

’00

0M

axim

um

r’0

00

M

inim

um

r’0

00

20

12

Oth

er

pri

ce r

isk

4 2

08

4

34

7 9

28

8

1 6

77

20

13

Oth

er

pri

ce r

isk

3 6

53

3 2

768

45

69

21

Se

nsi

tivi

ty a

nal

ysis

– e

qu

ity

pri

ce r

isk

A

ll th

e G

rou

p’s

lis

ted

eq

uity

in

stru

men

ts a

re l

iste

d o

n t

he J

oh

ann

esb

urg

Sto

ck

Exc

han

ge.

For

inve

stm

en

ts c

lass

ified

as

fair

val

ue t

hro

ug

h p

rofit

or

loss

, th

e i

mp

act

on

pro

fit o

r lo

ss

afte

r ta

x o

f a

5%

incre

ase in

th

e p

rice o

f th

e e

qu

ities

at t

he r

ep

ort

ing

dat

e, w

ou

ld h

ave b

een

an

incre

ase o

f R

145

470

(2

012

: R

1 0

83

34

3).

Were

th

e e

qu

ity p

rices

of

the G

rou

p’s

un

liste

d

inve

stm

en

ts t

o in

cre

ase b

y 5

%, t

he im

pac

t o

n p

rofit

or

loss

aft

er

tax

wo

uld

be a

n in

cre

ase o

f R

1,2

mill

ion

(2

012

: R

2,2

mill

ion

).

27.

Fi

nan

cial

inst

rum

en

ts c

on

tinu

ed

Fi

nan

cial

ass

ets

an

d li

abili

tie

s

T

he t

able

belo

w s

ets

ou

t th

e c

lass

ificat

ion

of

eac

h c

lass

of

finan

cia

l ass

ets

an

d li

abili

ties,

an

d

their

fai

r va

lues

No

tes

20

13r

’00

02

012

R’0

00

Loan

s an

d r

ece

ivab

les

– T

rad

e a

nd

oth

er

receiv

able

s 19

33

08

03

15

4

– L

on

g-t

erm

receiv

able

s 17

118

1 10

2

– O

ther

inve

stm

en

ts

161

143

1 13

7

– C

ash

an

d c

ash

eq

uiv

alen

ts

20

123

36

16

3 6

87

157

702

69

08

0

Ava

ilab

le-f

or-

sale

– In

vest

men

ts

16–

64

–6

4

Inve

stm

en

ts h

eld

at

fair

val

ue

– O

ther

inve

stm

en

ts

163

577

148

3 5

7714

8

Fair

val

ue

th

rou

gh

pro

fit

or

loss

– O

ther

inve

stm

en

ts

162

5 4

47

44

20

0

25

44

74

4 2

00

He

ld a

t am

ort

ise

d c

ost

Loan

s an

d b

orr

ow

ing

s 2

3(7

514

)(9

54

5)

Trad

e a

nd

oth

er

pay

able

s 2

5(1

24

04

4)

(58

94

2)

Ban

k o

verd

raft

20

(3 8

36

)–

(13

5 3

94

)(6

8 4

87)

Tota

l fin

anci

al a

sse

ts a

nd

liab

iliti

es

51

33

24

5 0

05

NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

27.

Fi

nan

cial

inst

rum

en

ts c

on

tinu

ed

Fi

nan

cial

gu

aran

tee

an

d p

ut

op

tio

n is

sue

d

T

he s

har

eh

old

ers

of

Blo

ckb

ust

er

Trad

ing

hav

e jo

intly

and

seve

rally

gu

aran

teed

th

e In

du

stri

al

Deve

lop

men

t C

orp

ora

tion

of

Sou

th A

fric

a Li

mite

d (

IDC

) a

min

imu

m r

etu

rn o

f 8

% r

eal

afte

r ta

x in

resp

ect

of

the e

igh

t-ye

ar c

um

ula

tive r

ed

eem

able

pre

fere

nce s

har

es

sub

scri

bed

for

in B

lockb

ust

er

Trad

ing

3 P

rop

rieta

ry L

imite

d f

or

a co

nsi

dera

tion

of

R9

0,3

mill

ion

. T

he

fun

din

g w

as u

sed

to

su

bsc

rib

e f

or

co

nve

rtib

le r

ed

eem

able

pre

fere

nce s

har

es

in R

eal

Peo

ple

Inve

stm

en

t H

old

ing

s P

rop

rieta

ry L

imite

d. I

n a

dd

itio

n, t

here

is a

pu

t o

ptio

n in

pla

ce in

fav

ou

r

of

the ID

C w

hic

h w

ou

ld o

pera

te in

a s

imila

r m

ann

er

to t

he fi

nan

cia

l gu

aran

tee a

s ab

ove

.

T

he v

alu

e o

f B

lockb

ust

er

at 3

1 A

ug

ust

20

13 i

s m

ore

th

an s

uffi

cie

nt

to c

ove

r th

e m

inim

um

retu

rn o

f th

e ID

C d

ue to

the u

nd

erl

yin

g v

alu

e o

f its

op

tion

to c

on

vert

its

pre

fere

nce s

har

es

into

ord

inar

y sh

ares

in R

eal

Peo

ple

. Th

e li

kelih

oo

d o

f th

e s

har

eh

old

ers

of

Blo

ckb

ust

er

need

ing

to

inje

ct

add

itio

nal

cas

h t

o s

atis

fy t

he m

inim

um

retu

rn o

f th

e ID

C h

as b

een

ass

ess

ed

as

rem

ote

and

th

ere

fore

bo

th t

he g

uar

ante

e a

nd

th

e p

ut

op

tion

hav

e n

il va

lue a

t th

e r

ep

ort

ing

dat

e.

28

. o

pe

rati

ng

leas

es

Le

ase

s as

less

ee

N

on

-can

cella

ble

op

era

ting

leas

e r

en

tals

are

pay

able

as

follo

ws

on

th

e r

en

tal a

gre

em

en

ts f

or

offi

ce p

rem

ises

and

eq

uip

men

t:

20

13r

’00

02

012

R’0

00

Offi

ce e

qu

ipm

en

t

Less

th

an o

ne y

ear

18

22

2

Betw

een

on

e a

nd

five

year

s –

36

0

Mo

re t

han

five

year

s –

–

Offi

ce p

rem

ise

s

Less

th

an o

ne y

ear

2

52

12

479

Betw

een

on

e a

nd

five

year

s 10

30

2–

Mo

re t

han

five

year

s –

–

12 8

41

3 0

61

28

. o

pe

rati

ng

leas

es

co

ntin

ued

Le

ase

s as

less

ee

co

ntin

ued

T

he G

rou

p l

eas

es

a n

um

ber

of

offi

ces

un

der

op

era

ting

leas

es.

Th

e l

eas

es

typ

ical

ly r

un

fo

r

five y

ear

s w

ith a

n o

ptio

n t

o r

en

ew

th

e l

eas

e a

fter

that

dat

e.

All

leas

es

esc

alat

e a

t 8

%.

Th

e

pre

mis

es

are in

Hyd

e P

ark,

Cap

e T

ow

n a

nd

Du

rban

.

O

ffice e

qu

ipm

en

t is

a 3

6 m

on

th le

ase f

or

pri

nte

rs, w

ith a

no

an

nu

al e

scal

atio

n.

D

uri

ng

th

e y

ear

en

ded

31

Au

gu

st 2

013

R4

,6 m

illio

n (2

012

: R5,

3 m

illio

n) w

as r

eco

gn

ised

as

an

exp

en

se in

th

e p

rofit

or

loss

in r

esp

ect

of

op

era

ting

leas

es.

29

. n

ote

s to

th

e s

tate

me

nt

of

cash

flo

ws

20

13r

’00

02

012

R’0

00

29

.1R

eco

nci

liati

on

of

cash

uti

lise

d in

op

era

tio

ns

Pro

fit b

efo

re t

axat

ion

an

d n

et

inte

rest

inco

me

(711

)4

60

6

Ad

just

me

nts

fo

r:

– D

ep

recia

tion

an

d a

mo

rtis

atio

n2

89

03

024

– F

air

valu

e lo

sses/

(gai

ns)

on

fin

ancia

l ass

ets

15 3

24

(3 3

98

)

– S

har

e-b

ased

pay

men

t exp

en

se1

98

12

90

2

– F

ore

ign

exc

han

ge lo

sses

(84

7)(4

80

)

– Im

pai

rmen

t o

f in

vest

men

t1

32

0–

– G

ain

on

sal

e o

f d

isco

ntin

ued

op

era

tion

s(2

1 71

3)

–

(1 7

56

)6

65

4

Mo

vem

en

t in

wo

rkin

g c

apit

al

Decre

ase in

tra

de a

nd

oth

er

receiv

able

s3

82

2 4

20

Incre

ase in

tra

de a

nd

oth

er

pay

able

s 6

7 19

115

524

65

817

24 5

98

29

.2A

cqu

isit

ion

of

asse

tsA

dd

itio

ns

to m

ain

tain

op

era

tion

s(2

670

)(4

38

)

Pu

rch

ased

inta

ng

ible

ass

ets

(86

2)

(15

5)

(3 5

32

)(5

93

)


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

29

. n

ote

s to

th

e s

tate

me

nt

of

cash

flo

ws

co

ntin

ued

20

13r

’00

02

012

R’0

00

29

.3In

vest

me

nts

acq

uir

ed

/so

ldIn

vest

men

ts1

05

4(1

63

9)

1 0

54

(1 6

39

)

29

.4Ta

x p

aid

Bal

ance a

t b

eg

inn

ing

of

peri

od

56

0–

Cu

rren

t ta

x3

079

3 8

61

Bal

ance a

t en

d o

f p

eri

od

(46

9)

(56

0)

Tax

pai

d3

170

3 3

01

30

. C

on

tin

ge

nci

es

T

here

are

no

co

ntin

gen

cie

s at

th

e r

ep

ort

ing

dat

e.

31.

r

ela

ted

par

tie

s

Ide

nti

ty o

f re

late

d p

arti

es

T

he G

rou

p h

as r

ela

ted

par

ty r

ela

tion

ship

s w

ith i

ts a

sso

cia

tes,

su

bsi

dia

ries

and

its

directo

rs

and

exe

cu

tive o

fficers

. See n

ote

32

fo

r a

list

of

the G

rou

p e

ntit

ies.

Tr

ansa

ctio

ns

wit

h k

ey

man

age

me

nt

pe

rso

nn

el

T

he k

ey

man

agem

en

t p

ers

on

nel

co

mp

en

satio

n i

s as

fo

llow

s an

d i

s in

clu

ded

in

“p

ers

on

nel

exp

en

ses”

(se

e n

ote

9):

20

13r

’00

02

012

R’0

00

Em

plo

yee

be

ne

fits

No

n-e

xecu

tive

dir

ect

ors

Den

nis

Alter

– f

ees

25

25

Cra

ig C

arte

r –

fees

120

120

Ro

nn

ie L

ub

ner

– f

ees

25

25

Th

em

beka

Gw

agw

a –

fees

150

150

32

03

20

31.

r

ela

ted

par

tie

s co

ntin

ued

Tr

ansa

ctio

ns

wit

h k

ey

man

age

me

nt

pe

rso

nn

el c

on

tinu

ed

20

13r

’00

02

012

R’0

00

Em

plo

yee

be

ne

fits

Exe

cuti

ve d

ire

cto

rs

Mar

k B

arn

es

– s

alar

y 3

18

02

88

0

– r

est

ructu

rin

g f

ee

1 5

50

–

– s

har

e o

ptio

n e

xpen

ses

410

69

2

Ch

arle

s Sa

vag

e

– s

alar

y 2

16

02

56

0

– s

har

e o

ptio

n e

xpen

ses

379

33

0

Mik

e W

ilso

n

– s

alar

y 1

84

71

92

0

– r

etr

en

ch

men

t co

sts

52

5–

– s

har

e o

ptio

n e

xpen

ses

23

64

10

Gar

y va

n D

yk*

– s

alar

y 4

28

–

– s

har

e o

ptio

n e

xpen

ses

42

–

10 7

57

8 7

92

*

Rem

un

era

tion

inclu

ded

fro

m d

ate o

f ap

po

intm

en

t as

a d

irecto

r, b

ein

g 1

5 A

pril 2

013

.

T

he

thre

e h

igh

est p

aid

no

n-d

irect

ors

ear

ned

sal

arie

s o

f R2,

1 m

illio

n, R

1,7

mill

ion

an

d R

1,3

mill

ion

,

resp

ectiv

ely.

O

the

r re

late

d p

arty

tra

nsa

ctio

ns

T

here

were

oth

er

rela

ted

par

ty t

ran

sactio

ns

as f

ollo

ws:

Th

ere

is

a

loan

b

etw

een

P

urp

le

Cap

ital

and

Fi

rst

Wo

rld

Tr

ader

of

R8

,77

mill

ion

(20

12:

R11

,1 m

illio

n).

Th

e l

oan

has

no

set

rep

aym

en

t te

rms

bu

t b

ear

s a

mar

ket

rela

ted

inte

rest

.


NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

32

. G

rou

p e

nti

tie

s

Ow

ne

rsh

ip in

tere

st

Ow

ne

rsh

ip in

tere

st

Sub

sid

iari

es

Nam

eC

ou

ntr

y2

013 %

20

12 %

Firs

t W

orl

d T

rad

er

Pro

pri

eta

ry L

imite

d**

So

uth

Afr

ica

100

100

Glo

bal

Tra

der

Can

ada

Lim

ited

C

anad

a 10

0

100

Glo

bal

Tra

der

Eu

rop

e L

imite

d*

UK

100

10

0

New

Wo

rld

Tra

der

Lim

ited

Ir

ela

nd

100

100

Po

werb

et

Gam

ing

Pro

pri

eta

ry L

imite

d#

Sou

th A

fric

a–

10

0

Pu

rple

Cap

ital T

reas

ury

Pro

pri

eta

ry

Lim

ited

#

Sou

th A

fric

a–

10

0

*

C

urr

en

tly

bein

g li

qu

idat

ed

.

#

S

ub

sid

iary

so

ld d

urin

g t

he c

urr

en

t ye

ar (se

e n

ote

36

).

**

In

clu

des

the o

pera

tion

s o

f G

T24

7.co

m, G

T P

riva

te B

roki

ng

an

d E

mp

ero

r A

sset

Man

agem

en

t.

33

. s

ub

seq

ue

nt

eve

nts

T

he d

irecto

rs a

re n

ot

awar

e o

f an

y o

ther

mat

ter

or

circu

mst

ance a

risi

ng

sin

ce y

ear

en

d u

p

to t

he d

ate o

f th

is r

ep

ort

, no

t o

therw

ise d

eal

t w

ith in

th

is r

ep

ort

.

34

. n

et

asse

t va

lue

pe

r sh

are

T

he G

rou

p n

et

asse

t va

lue i

s 3

3,8

4 (

20

12:

33,

34

) cen

ts p

er

shar

e a

nd

is

bas

ed

on

th

e

nu

mb

er

of

ord

inar

y sh

ares

in i

ssu

e n

et

of

treas

ury

sh

ares

at y

ear

en

d o

f 8

15 5

75 7

23

(20

12:

82

0 6

55

02

2)

and

net

asse

ts o

f R

276

,0 m

illio

n (

20

12:

R2

73,4

mill

ion

).

35

. d

isco

nti

nu

ed

op

era

tio

ns

Fo

llow

ing

a s

trat

eg

ic d

ecis

ion

to

pla

ce a

gre

ater

focu

s o

n t

he G

rou

p’s

co

re a

ctiv

ities,

man

agem

en

t so

ld P

urp

le C

apita

l Tre

asu

ry a

nd

Po

werb

et

Gam

ing

(re

fer

no

te 3

6).

T

he a

bo

ve s

eg

men

ts w

ere

no

t p

revi

ou

sly

cla

ssifi

ed

as

held

fo

r sa

le o

r as

dis

co

ntin

ued

op

era

tion

s.

Th

e

co

mp

arat

ive

co

nso

lidat

ed

st

atem

en

t o

f p

rofit

o

r lo

ss

and

o

ther

co

mp

reh

en

sive

in

co

me h

as b

een

rest

ated

to

sh

ow

th

e d

isco

ntin

ued

op

era

tion

sep

arat

ely

fro

m c

on

tinu

ing

op

era

tion

s.

R

esu

lts

of

dis

con

tin

ue

d o

pe

rati

on

– G

rou

p

20

132

012

trea

sury

r’0

00

po

wer

bet

r’0

00

tota

l

r’0

00

Tre

asu

ry

R’0

00

Po

we

rbe

t

R’0

00

Tota

l

R’0

00

Reve

nu

e2

02

35

93

47

95

75 1

21

3 8

59

8

98

0

Exp

en

ses

(4 9

02

)(2

0 5

73)

(25

475

)(1

0 2

12)

(13

64

0)

(2

3 8

52

)

Ear

nin

gs

befo

re in

tere

st,

dep

recia

tion

an

d

amo

rtis

atio

n (

2 8

79)

(14

63

9)

(

17 5

18)

(5 0

91)

(9 7

81)

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inte

rest

Dep

recia

tion

an

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n(4

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Pro

fit b

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re t

ax(3

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(15

24

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32

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me t

ax13

71

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247

1 554

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sult

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om

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era

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g

acti

viti

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ne

t o

f ta

x(3

23

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14 0

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1)(8

76

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4

44

9)

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fit o

n s

ale o

f

dis

co

ntin

ued

op

era

tion

32

1 2

1 3

92

21

713

–

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ss)/

pro

fit

for

the

pe

rio

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313

4 4

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49

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gs

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r

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e0

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TE

S T

O T

HE

GR

OU

P F

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AT

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ntin

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the y

ear

en

ded

31

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gu

st 2

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36

. d

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e G

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ceiv

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tion

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ed

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ash

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uiv

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able

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00

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alys

is o

f as

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d li

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tie

s o

ver

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ich

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ntr

ol w

as lo

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rre

nt

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ts

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uip

men

t–

47

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ng

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ets

1 6

91

6 2

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rred

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et

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nt

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ts

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e a

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er

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46

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h a

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93

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t lia

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rred

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es

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e a

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er

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sed

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93

98

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8

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00

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25

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21

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in t

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r th

e y

ear

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m d

isco

ntin

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op

era

tion

s (s

ee n

ote

35

).

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t ca

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nsi

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ash

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: C

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po

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(211

)(5

93

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1 0

48

(59

3)


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old

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ysis

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1 0

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the

r d

iscl

osu

res

Go

ing

co

ncern

– r

efe

r to

directo

rs’ r

ep

ort

on

pag

e 2

1.

Cap

ital

dis

trib

utio

n o

ut

of

shar

e p

rem

ium

in

lie

u o

f d

ivid

en

d p

ost

year

en

d –

refe

r to

directo

rs r

ep

ort

on

pag

e 2

1.

NO

TE

S T

O T

HE

GR

OU

P F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

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gu

st 2

013


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MP

AN

Y S

TA

TE

ME

NT

OF

FIN

AN

CIA

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OS

ITIO

NA

s at

31

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gu

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013

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tes

20

13r

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ET

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9

42

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ries

10

25

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63

26

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08

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er

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stm

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2

6 4

24

45

48

5

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rred

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ass

ets

82

0 4

42

15

78

7

Tota

l no

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30

6 3

58

3

30

674

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e a

nd

oth

er

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able

s12

1

5 5

56

1 3

07

Rela

ted

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ty lo

ans

16–

5 4

43

Cas

h a

nd

cas

h e

qu

ival

en

ts–

92

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l cu

rre

nt

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ts

15 5

56

6 8

42

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l ass

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1 9

143

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516

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Y A

ND

LIA

BIL

ITIE

S

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e c

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ium

4

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87

4

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53

Accu

mu

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89

8)

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0 3

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)

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er

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19 0

68

1

8 1

81

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y at

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ble

to

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rs 2

98

55

7

314

12

6

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d b

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47

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1

44

7

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k o

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3 8

30

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7 5

14

7

814

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16 8

773

11

08

8

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able

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75

1

Tota

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nt

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23

35

7

2

1 9

43

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uit

y an

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tie

s

32

1 9

14

33

7 5

16

CO

MP

AN

Y S

TA

TE

ME

NT

OF

C

OM

PR

EH

EN

SIV

E I

NC

OM

EFo

r th

e y

ear

en

ded

31

Au

gu

st 2

013

No

tes

20

13r

’00

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00

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nti

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ing

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era

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ns

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nu

e1

6 2

11

5 1

95

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ting

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en

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70)

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33

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3–

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1

Ear

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gs

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fore

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r va

lue

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just

me

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tere

st,

de

pre

ciat

ion

an

d a

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rtis

atio

n(

9 3

37)

(6

44

)

Fair

val

ue a

dju

stm

en

ts3

(9 4

98

)3

35

6

(Lo

ss)/

pro

fit

be

fore

fai

r va

lue

ad

just

me

nts

an

d

taxa

tio

n

(18

83

5)

2 7

12

Inte

rest

inco

me

43

68

1

38

6

Inte

rest

exp

en

se4

(1 3

66

)(1

63

1)

Dep

recia

tion

an

d a

mo

rtis

atio

n2

(30

)(5

2)

(Lo

ss)/

pro

fit

be

fore

tax

(19

86

3)

2

415

Taxa

tion

74

65

6

2 2

63

(Lo

ss)/

pro

fit

for

the

pe

rio

d(1

5 2

07)

4 6

78

Dis

con

tin

ue

d o

pe

rati

on

s

Loss

fro

m d

isco

ntin

ued

op

era

tion

s, n

et

of

tax

5

(3

83

)

–

(Lo

ss)/

pro

fit

for

the

pe

rio

d (

15 5

90

)4

678


CO

MP

AN

Y S

TA

TE

ME

NT

OF

OT

HE

R

CO

MP

RE

HE

NS

IVE

IN

CO

ME

For

the y

ear

en

ded

31

Au

gu

st 2

013

20

13r

’00

0 2

012

R’0

00

(Lo

ss)/

pro

fit

for

the

pe

rio

d(1

5 5

90

)4

678

Oth

er

com

pre

he

nsi

ve in

com

e

Fore

ign

cu

rren

cy

tran

slat

ion

rese

rve o

n f

ore

ign

op

era

tion

s–

–

Ava

ilab

le-f

or-

sale

reva

luat

ion

s–

–

Ava

ilab

le-f

or-

sale

tra

nsf

err

ed

to

pro

fit o

r lo

ss

––

Inco

me t

ax o

n r

eva

luat

ion

–

–

Tota

l co

mp

reh

en

sive

(lo

ss)/

pro

fit

(15

59

0)

4 6

78

CO

MP

AN

Y S

TA

TE

ME

NT

OF

CA

SH

FLO

WS

For

the y

ear

en

ded

31

Au

gu

st 2

013

No

tes

20

13r

’00

0 2

012

R’0

00

Cas

h fl

ow

s fr

om

op

era

tin

g a

ctiv

itie

s

Cas

h u

tilis

ed

b

y o

pera

tion

s15

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3 7

13)

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52

)

Div

iden

ds

receiv

ed

fro

m a

sso

cia

tes

–(3

60

)

Cas

h fl

ow

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tilis

ed

by

op

era

tin

g a

ctiv

itie

s(1

3 7

13)

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12)

Cas

h fl

ow

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om

inve

stin

g a

ctiv

itie

s

Inte

rest

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72)

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68

)

Inte

rest

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ed

38

373

0

Acq

uis

itio

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f eq

uip

men

t an

d in

tan

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les

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)(6

)

Rep

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en

t/(a

cq

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itio

n)

of

inve

stm

en

ts15

.3–

1 2

35

Pro

ceed

s fr

om

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e o

f su

bsi

dia

ry6

15 8

36

–

Cas

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en

era

ted

fro

m in

vest

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act

ivit

ies

15 9

31

39

1

Cas

h fl

ow

s fr

om

fin

anci

ng

act

ivit

ies

Pro

ceed

s fr

om

th

e is

sue o

f sh

are c

apita

l8

86

20

Pu

rch

ase o

f o

wn

sh

ares

(95

4)

–

Inte

r g

rou

p lo

an p

roceed

s(4

14

4)

3 8

58

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loan

rep

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ts16

0(6

874

)

Cas

h fl

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tilis

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by

fin

anci

ng

act

ivit

ies

(4 8

50

)(2

39

6)

Net

decre

ase in

cas

h a

nd

cas

h e

qu

ival

en

ts(2

63

2)

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17)

Cas

h a

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cas

h e

qu

ival

en

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t b

eg

inn

ing

of

peri

od

(1 1

98

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619

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h a

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cas

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30

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98

)


CO

MP

AN

Y S

TA

TE

ME

NT

OF

CH

AN

GE

S I

N E

QU

ITY

For

the y

ear

en

ded

31

Au

gu

st 2

013

sh

are

cap

ital

r’0

00

shar

ep

rem

ium

r’0

00

acc

u-

mu

late

dp

rofi

t/(l

oss

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’00

0

shar

e-b

ased

pay

men

t r

eser

ver

’00

0

tota

leq

uit

yr

’00

0

Bal

ance

at

1 Se

pte

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20

118

20

14

67

43

4(1

84

98

6)

16 4

96

30

7 14

5

Tota

l co

mp

reh

en

sive

inco

me

fo

r th

e p

eri

od

Pro

fit o

r lo

ss–

–4

678

–4

678

Co

ntr

ibu

tio

ns

by

and

dis

trib

uti

on

s to

ow

ne

rs2

55

93

––

618

Shar

e-b

ased

pay

men

t exp

en

ses

––

–1

68

51

68

5

Bal

ance

at

1 Se

pte

mb

er

20

128

22

64

68

02

7(1

80

30

8)

18 1

81

314

12

6

Tota

l co

mp

reh

en

sive

inco

me

fo

r th

e p

eri

od

Pro

fit o

r lo

ss–

–(1

5 5

90

)–

(15

59

0)

Co

ntr

ibu

tio

ns

by

and

dis

trib

uti

on

s to

ow

ne

rs

Pu

rch

ase o

f o

wn

sh

ares

(50

)(9

04

)–

–(9

54

)

Shar

es

issu

ed

48

4–

–8

8

Shar

e-b

ased

pay

men

t exp

en

ses

––

–8

87

88

7

Bal

ance

at

31

Au

gu

st 2

013

8 1

80

46

7 2

07

(19

5 8

98

)19

06

82

98

55

7


NO

TE

S T

O T

HE

CO

MP

AN

Y F

INA

NC

IAL

ST

AT

EM

EN

TS

For

the y

ear

en

ded

31

Au

gu

st 2

013

Refe

r to

th

e G

rou

p n

ote

s fo

r ac

co

un

ting

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licie

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late

d t

o t

hese

Co

mp

any

acco

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ts.

20

13r

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02

012

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00

1.r

eve

nu

e –

co

nti

nu

ing

op

era

tio

ns

Man

agem

en

t fe

es*

6 2

114

08

0

Oth

er

fee in

co

me

–1

115

Tota

l re

ven

ue

6 2

115

19

5

* R

efe

r to

no

te 1

6.

2.

op

era

tin

g e

xpe

nse

s –

co

nti

nu

ing

o

pe

rati

on

sP

ers

on

ne

l exp

en

ses

8 0

62

10 8

71

Wag

es

and

sal

arie

s7

175

9 1

86

Shar

e-b

ased

pay

men

t exp

en

se8

87

1 6

85

Au

dit

or'

s re

mu

ne

rati

on

28

32

15

Au

dit

fees

– c

urr

en

t ye

ar2

83

215

List

ing

exp

en

ses

20

54

25

Leas

e r

en

tals

– E

qu

ipm

en

t2

66

169

Fee

s p

aid

fo

r se

rvic

es

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nsu

ltin

g2

89

115

Leg

al4

24

2 5

98

De

pre

ciat

ion

30

52

Co

mp

ute

r eq

uip

men

t14

26

Furn

iture

an

d fi

ttin

gs

1119

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ce e

qu

ipm

en

t5

7

3.

oth

er

inco

me

– c

on

tin

uin

g o

pe

rati

on

sG

lob

al T

rad

er

Eu

rop

e d

istr

ibu

tion

–5

83

1

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val

ue a

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stm

en

ts(9

49

8)

3 3

56

20

13r

’00

02

012

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00

4.

ne

t in

tere

st e

xpe

nse

– c

on

tin

uin

g

op

era

tio

ns

Inte

rest

inco

me o

n b

ank

dep

osi

ts3

68

1 10

4

Inte

rest

inco

me o

n d

eb

en

ture

s–

188

Inte

rest

on

lon

g-t

erm

receiv

able

s–

94

Tota

l in

tere

st in

com

e3

68

1 3

86

Tota

l in

tere

st e

xpe

nse

(1 3

66

)(1

63

1)

Ne

t in

tere

st e

xpe

nse

(99

8)

(24

5)

5.

dis

con

tin

ue

d o

pe

rati

on

s

Follo

win

g a

str

ateg

ic d

ecis

ion

to

pla

ce a

gre

ater

focu

s o

n t

he G

rou

p’s

co

re o

pera

tion

s,

man

agem

en

t so

ld P

urp

le C

apita

l Tr

eas

ury

an

d P

ow

erb

et

Gam

ing

Pro

prieta

ry L

imite

d (

see

no

te 6

).

T

he a

bo

ve s

eg

men

ts w

ere

no

t p

revi

ou

sly

cla

ssifi

ed

as

held

fo

r sa

le o

r as

dis

co

ntin

ued

op

era

tion

s.

Th

e

co

mp

arat

ive

co

nso

lidat

ed

st

atem

en

t o

f p

rofit

o

r lo

ss

and

o

ther

co

mp

reh

en

sive

in

co

me h

as b

een

rest

ated

to

sh

ow

th

e d

isco

ntin

ued

op

era

tion

sep

arat

ely

fro

m c

on

tinu

ing

op

era

tion

s.

pu

rple

Cap

ital

trea

sury

r’0

00

po

wer

bet

Gam

ing

r’0

00

tota

lr

’00

0

Re

sult

s o

f d

isco

nti

nu

ed

op

era

tio

ns

–

Gro

up

(Lo

ss)/

pro

fit o

n s

ale o

f d

isco

ntin

ued

op

era

tion

(3 8

95

)3

512

(38

3)


NO

TE

S T

O T

HE

CO

MP

AN

Y F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

6.

dis

po

sal o

f a

sub

sid

iary

T

he C

om

pan

y d

isp

ose

d o

f Pu

rple

Cap

ital T

reas

ury

an

d P

ow

erb

et G

amin

g in

th

e c

urr

en

t ye

ar.

pu

rple

Cap

ital

trea

sury

20

13r

’00

0

po

wer

bet

Gam

ing

20

13r

’00

0

Co

nsi

de

rati

on

re

ceiv

ed

Co

nsi

dera

tion

receiv

ed

/receiv

able

*1

25

914

577

* To

tal p

roceed

s: R

15 8

36

00

0.

An

alys

is o

f as

sets

an

d li

abili

tie

s w

ritt

en

off

Co

st o

f in

vest

men

t1

50

0

7 4

45

Inte

rco

mp

any

loan

3 6

53

3 6

18

Tota

l5

15

311

06

3

Gai

n o

n d

isp

osa

l of

sub

sid

iary

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nsi

dera

tion

receiv

ed

1

25

914

577

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asse

ts d

isp

ose

d o

f(5

15

3)

(11

06

3)

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ss)/

pro

fit

on

dis

po

sal

(3 8

94

)3

514

Th

e g

ain

on

dis

po

sal i

s in

clu

ded

in t

he p

rofit

fo

r th

e y

ear

fro

m d

isco

ntin

ued

op

era

tion

s (s

ee n

ote

5).

Ne

t ca

sh in

flo

w o

n d

isp

osa

l of

sub

sid

iary

Co

nsi

dera

tion

receiv

ed

in

cas

h a

nd

cas

h e

qu

ival

en

t1

25

9–

Less

: C

ash

an

d c

ash

eq

uiv

alen

t b

alan

ces

dis

po

sed

of

(211

)(5

93

)

1 0

48

(59

3)

20

13r

’00

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012

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00

7.C

urr

en

t an

d d

efe

rre

d t

axD

efe

rred

tax

4 6

56

2 2

63

Tota

l4

65

62

26

3

Re

con

cilia

tio

n o

f e

ffe

ctiv

e t

ax r

ate

:%

%

Defe

rred

tax

ch

arg

ed

to

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me s

tate

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t(2

3)

(93,

7)

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exe

mp

t in

co

me

35

,18

4,8

No

n-d

ed

uctib

le e

xpen

ses

(40

,1)

(6,3

)

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sio

n t

ax r

ate c

han

ge

–6

8,6

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ital g

ain

s ta

x–

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4)

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me

stic

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e(2

8,0

)2

8,0

20

13r

’00

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012

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00

8.

de

ferr

ed

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ass

ets

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d li

abil

itie

sR

eco

gn

ised

defe

rred

tax

ass

ets

an

d li

abili

ties:

Bal

ance a

t th

e b

eg

inn

ing

of

the p

eri

od

15 7

87

13 5

24

Inve

stm

en

ts a

t fa

ir v

alu

e3

52

6(6

26

)

Pay

able

s an

d a

ccru

als

198

(55

)

Tax

loss

93

11

28

7

Ch

ang

e in

inclu

sio

n r

ate

–1

65

7

Bal

ance

at

the

en

d o

f th

e p

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od

20

44

215

78

7

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rred

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co

mp

rise

s th

e f

ollo

win

g:

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en

ts a

t fa

ir v

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e9

54

66

02

0

Trad

e p

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les

and

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ts3

45

147

Tax

loss

10 5

51

9 6

20

De

ferr

ed

tax

ass

et

20

44

215

78

7


20

13r

’00

02

012

R’0

00

9.

inte

rest

in a

sso

ciat

e c

om

pan

ies

Th

e C

om

pan

y h

as t

he f

ollo

win

g in

vest

men

ts in

ass

ocia

te

co

mp

anie

s:

Un

liste

d

– C

ost

–3

00

– L

oan

s5

20

05

85

2

At

31

Au

gu

st5

20

06

15

2

10.

inve

stm

en

t in

su

bsi

dia

rie

sT

he C

om

pan

y h

as t

he f

ollo

win

g in

vest

men

ts in

sub

sid

iari

es:

Op

en

ing

bal

ance

26

3 2

08

26

4 4

43

Sale

of

sub

sid

iari

es

(8 9

45

)(1

23

5)

At

31

Au

gu

st2

54

26

32

63

20

8

Refe

r to

Gro

up

no

te 3

2 f

or

deta

ils o

f in

vest

men

t in

sub

sid

iari

es.

11.

oth

er

inve

stm

en

tsT

he C

om

pan

y h

as t

he f

ollo

win

g o

ther

inve

stm

en

ts:

Fair

val

ue

th

rou

gh

pro

fit

and

loss

– U

nlis

ted

25

44

74

4 2

00

Oth

er

inve

stm

en

ts s

ho

wn

at

fair

val

ue

–

List

ed

–14

8

Loan

s an

d r

ece

ivab

les

at a

mo

rtis

ed

co

st

– U

nlis

ted

977

1 13

7

Tota

l oth

er

inve

stm

en

ts2

6 4

24

45

48

5

Refe

r to

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up

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te 1

6 f

or

furt

her

deta

ils.

20

13r

’00

02

012

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00

12.

trad

e a

nd

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er

rece

ivab

les

Trad

e r

eceiv

able

s12

01

08

4

Pre

pay

men

ts a

nd

dep

osi

ts–

24

Receiv

able

fro

m s

ale o

f P

ow

erb

et

Gam

ing

14 5

77–

Oth

er

receiv

able

s8

59

199

15 5

56

1 3

07

13.

loan

s an

d b

orr

ow

ing

sT

his

no

te p

rovi

des

info

rmat

ion

on

th

e C

om

pan

y’s

inte

rest

-bear

ing

bo

rro

win

gs

that

are

meas

ure

d a

t

amo

rtis

ed

co

st:

No

n-c

urr

en

t lia

bili

tie

s

Secu

red

ban

k lo

ans

–1

44

7

Cu

rre

nt

liab

iliti

es

Secu

red

ban

k lo

ans

7 5

147

814

7 5

149

26

1

Refe

r to

Gro

up

no

te 2

3 f

or

term

s an

d c

on

diti

on

s an

d t

he

rela

ted

fin

ancia

l in

stru

men

t ri

sk in

no

te 1

7.

14.

trad

e a

nd

oth

er

pay

able

sTr

ade p

ayab

les

795

7

Oth

er

trad

e p

ayab

les

and

accru

ed

exp

en

ses

1 8

06

92

3

Em

plo

yee r

ela

ted

1 3

55

771

3 2

40

1 75

1

NO

TE

S T

O T

HE

CO

MP

AN

Y F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013


20

13r

’00

02

012

R’0

00

12.

trad

e a

nd

oth

er

rece

ivab

les

Trad

e r

eceiv

able

s12

01

08

4

Pre

pay

men

ts a

nd

dep

osi

ts–

24

Receiv

able

fro

m s

ale o

f P

ow

erb

et

Gam

ing

14 5

77–

Oth

er

receiv

able

s8

59

199

15 5

56

1 3

07

13.

loan

s an

d b

orr

ow

ing

sT

his

no

te p

rovi

des

info

rmat

ion

on

th

e C

om

pan

y’s

inte

rest

-bear

ing

bo

rro

win

gs

that

are

meas

ure

d a

t

amo

rtis

ed

co

st:

No

n-c

urr

en

t lia

bili

tie

s

Secu

red

ban

k lo

ans

–1

44

7

Cu

rre

nt

liab

iliti

es

Secu

red

ban

k lo

ans

7 5

147

814

7 5

149

26

1

Refe

r to

Gro

up

no

te 2

3 f

or

term

s an

d c

on

diti

on

s an

d t

he

rela

ted

fin

ancia

l in

stru

men

t ri

sk in

no

te 1

7.

14.

trad

e a

nd

oth

er

pay

able

sTr

ade p

ayab

les

795

7

Oth

er

trad

e p

ayab

les

and

accru

ed

exp

en

ses

1 8

06

92

3

Em

plo

yee r

ela

ted

1 3

55

771

3 2

40

1 75

1

NO

TE

S T

O T

HE

CO

MP

AN

Y F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

20

13r

’00

02

012

R’0

00

15.

no

tes

to s

tate

me

nt

of

cash

flo

ws

15.1

Re

con

cilia

tio

n o

f ca

sh u

tilis

ed

in o

pe

rati

on

sP

rofit

befo

re t

axat

ion

, net

inte

rest

inco

me

(19

24

8)

2 6

60

Ad

just

me

nts

fo

r:

–

Dep

recia

tion

3

05

2

–

Fair

val

ue g

ain

on

fin

ancia

l ass

ets

9

49

8(3

35

6)

–

Shar

e-b

ased

pay

men

t exp

en

se

88

71

68

6

–

Div

iden

ds

receiv

ed

fro

m v

en

ture

cap

ital

asso

cia

te–

36

0

–

Sale

of

inve

stm

en

t9

40

3–

–

Loss

on

sal

e o

f P

urp

le C

apita

l Tre

asu

ry3

89

5–

–

Pro

fit o

n s

ale o

f P

ow

erb

et

Gam

ing

(3 5

12)

–

95

31

40

2

Mo

vem

en

t in

wo

rkin

g c

apit

al

(Incre

ase)/

decre

ase in

tra

de a

nd

oth

er

receiv

able

s (1

4 2

49

)1

786

Decre

ase in

tra

de a

nd

oth

er

pay

able

s (4

17)

(5 6

40

)

(13

713

)(2

45

2)

15.2

Acq

uis

itio

n o

f e

qu

ipm

en

tA

dd

itio

ns

to m

ain

tain

op

era

tion

s(1

6)

(6

)

15.3

Inve

stm

en

ts a

cqu

ire

dIn

vest

men

ts r

ep

aid

/(ac

qu

ired

) –

1 2

35

20

13r

’00

02

012

R’0

00

16.

re

late

d p

arti

es

Re

late

d p

arty

tra

nsa

ctio

ns

Man

agem

en

t fe

e c

har

ged

6 2

114

08

0

Inte

rest

pai

d2

89

23

0

Re

late

d p

arty

bal

ance

s

Loan

fro

m F

irst

Wo

rld

Tra

der

Pro

pri

eta

ry L

imite

d*

(8 7

73)

(11

08

8)

Loan

to

Po

werb

et

Gam

ing

Pro

pri

eta

ry L

imite

d#

–3

618

Loan

to

Pu

rple

Cap

ital T

reas

ury

Pro

pri

eta

ry L

imite

d#

–1

82

5

* T

he lo

an h

as n

o s

et

rep

aym

en

t te

rms

bu

t b

ear

s a

mar

ket

rela

ted

inte

rest

.# T

he lo

ans

had

no

set

rep

aym

en

t te

rms,

un

secu

red

an

d in

tere

st f

ree.

17.

Fin

anci

al in

stru

me

nts

C

red

it r

isk

E

xpo

sure

to

cre

dit

ris

k

T

he c

arry

ing

am

ou

nt

of

finan

cia

l ass

ets

rep

rese

nts

th

e m

axim

um

cre

dit

exp

osu

re.

T

he m

axim

um

exp

osu

re t

o c

red

it ri

sk a

t th

e r

ep

ort

ing

dat

e w

as:

No

tes

20

13r

’00

02

012

R’0

00

Fin

ancia

l ass

ets

at

amo

rtis

ed

co

st11

977

1 13

7

Rela

ted

par

ty lo

ans

16–

5 4

43

Loan

s an

d r

eceiv

able

s12

15 5

56

1 3

07

16 5

33

7 8

87

T

he m

axim

um

exp

osu

re t

o c

red

it ri

sk f

or

loan

s an

d r

eceiv

able

s at

th

e r

ep

ort

ing

dat

e

was

in

So

uth

Afr

ica.

Pu

rple

Cap

ital’s

on

ly r

eceiv

able

s ar

e w

ith a

few

lar

ge c

orp

ora

tes

that

man

agem

en

t d

eal

s w

ith d

irectly.


NO

TE

S T

O T

HE

CO

MP

AN

Y F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

17.

Fin

anci

al in

stru

me

nts

co

ntin

ued

Li

qu

idit

y ri

sk

T

he

follo

win

g

are

the

co

ntr

actu

al

mat

uri

ties

of

finan

cia

l lia

bili

ties,

in

clu

din

g

est

imat

ed

inte

rest

pay

men

ts:

No

tes

Car

ryin

g a

mo

un

tr

’00

0

Co

ntr

actu

alca

sh fl

ow

sr

’00

01

year

r’0

00

2 –

5 y

ears

r’0

00

As

at 3

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ust

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13

Secu

red

loan

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7 5

147

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7 5

14–

Rela

ted

par

ty lo

ans

168

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738

773

–

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k o

verd

raft

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30

3 8

30

3 8

30

–

Trad

e a

nd

oth

er

pay

able

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7979

79–

20

19

62

0 1

96

20

19

6–

As

at 3

1 A

ug

ust

20

12

Secu

red

loan

s13

9 2

61

9 2

61

7 8

141

44

7

Rela

ted

par

ty lo

ans

165

44

35

44

35

44

3–

Ban

k o

verd

raft

1 2

90

1 2

90

1 2

90

–

Trad

e a

nd

oth

er

pay

able

s14

57

57

57

–

16 0

51

16 0

51

14 6

04

1 4

47

T

he G

rou

p m

anag

es

this

exp

osu

re th

rou

gh

en

suri

ng

there

are

ad

eq

uat

e c

on

trac

ted

ove

rdra

ft

facili

ties

avai

lab

le t

o c

ove

r an

y d

efic

it b

etw

een

cu

rren

t as

sets

an

d li

abili

ties.

17.

Fin

anci

al in

stru

me

nts

co

ntin

ued

In

tere

st r

ate

ris

k

P

rofi

le

A

t th

e re

po

rtin

g d

ate th

e in

tere

st ra

te p

rofil

e o

f th

e G

rou

p’s

in

tere

st-b

ear

ing

fin

ancia

l

inst

rum

en

ts w

as:

No

tes

Inte

rest

rate

ap

plic

able

Car

ryin

g

amo

un

t2

013

r’0

00

Car

ryin

g

amo

un

t2

012

R’0

00

Var

iab

le r

ate

inst

rum

en

ts

Fin

ancia

l ass

ets

11

Pri

me

977

1 13

7

Fin

ancia

l lia

bili

ties

13P

rim

e +

1%(7

514

)(9

26

1)

Ban

k o

verd

raft

Pri

me

(3 8

30

)(1

29

0)

C

ash

flo

w s

en

siti

vity

an

alys

is f

or

vari

able

rat

e in

stru

me

nts

A

ch

ang

e o

f 10

0 b

asis

po

ints

in

in

tere

st r

ates

at t

he r

ep

ort

ing

dat

e w

ou

ld h

ave i

ncre

ased

/

(decre

ased

) p

rofit

or

loss

by

the a

mo

un

ts s

ho

wn

belo

w. T

his

an

alys

is a

ssu

mes

that

all

oth

er

vari

able

s re

mai

n c

on

stan

t. T

he a

nal

ysis

is p

erf

orm

ed

on

th

e s

ame b

asis

fo

r 2

012

.

pro

fit

or

loss

Pro

fit

or

loss

100

bp

incr

ease

20

13r

’00

0

100

bp

dec

reas

e2

013

r’0

00

100

bp

incr

eas

e2

012

R’0

00

100

bp

de

cre

ase

20

12R

’00

0

Var

iab

le r

ate

inst

rum

en

ts

Fin

ancia

l ass

ets

10

(10

)11

(11

)

Fin

ancia

l lia

bili

ties

84

(83

)15

5

(15

2)

94

(93

)16

6

(16

3)

P

rice

ris

k

Se

nsi

tivi

ty a

nal

ysis

– e

qu

ity

pri

ce r

isk

A

ll th

e G

rou

p’s

lis

ted

eq

uity

in

stru

men

ts a

re l

iste

d o

n t

he J

oh

ann

esb

urg

Sto

ck

Exc

han

ge.

For

inve

stm

en

ts c

lass

ified

as

fair

val

ue t

hro

ug

h p

rofit

or

loss

, a

5%

in

cre

ase i

n t

he p

rice o

f

the e

qu

ities

at t

he r

ep

ort

ing

dat

e, t

he im

pac

t o

n p

rofit

or

loss

aft

er

tax

wo

uld

hav

e b

een

an

incre

ase o

f R

145

470

(2

012

: R

1 0

83

34

3).


NO

TE

S T

O T

HE

CO

MP

AN

Y F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013

17.

Fin

anci

al in

stru

me

nts

co

ntin

ued

Fi

nan

cial

ass

ets

an

d li

abili

tie

s

T

he t

able

belo

w s

ets

ou

t th

e c

lass

ificat

ion

of

eac

h c

lass

of

finan

cia

l ass

ets

an

d li

abili

ties,

an

d

their

fai

r va

lues.

No

tes

20

13r

’00

02

012

R’0

00

Loan

s an

d r

ece

ivab

les

– T

rad

e a

nd

oth

er

receiv

able

s 12

15 5

56

1 3

07

– R

ela

ted

par

ty lo

ans

16–

5 4

43

– O

ther

inve

stm

en

ts

119

771

137

Fair

val

ue

th

rou

gh

pro

fit

or

loss

– O

ther

inve

stm

en

ts

112

5 4

47

44

20

0

He

ld a

t am

ort

ise

d c

ost

Rela

ted

par

ty lo

ans

16(8

773

)(1

1 0

88

)

Loan

s an

d b

orr

ow

ing

s 13

(7 5

14)

(9 2

61)

Ban

k o

verd

raft

(3 8

30

)(1

29

0)

Trad

e a

nd

oth

er

pay

able

s 14

(79

)(5

7)

Tota

l fin

anci

al a

sse

ts a

nd

liab

iliti

es

21

784

30

39

1

17.

Fin

anci

al in

stru

me

nts

co

ntin

ued

Fi

nan

cial

gu

aran

tee

an

d p

ut

op

tio

n is

sue

d

T

he s

har

eh

old

ers

of

Blo

ckb

ust

er

Trad

ing

hav

e jo

intly

and

seve

rally

gu

aran

teed

th

e In

du

stri

al

Deve

lop

men

t C

orp

ora

tion

of

Sou

th A

fric

a Li

mite

d (

IDC

) a

min

imu

m r

etu

rn o

f 8

% r

eal

afte

r ta

x in

resp

ect

of

the e

igh

t-ye

ar c

um

ula

tive r

ed

eem

able

pre

fere

nce s

har

es

sub

scri

bed

for

in B

lockb

ust

er

Trad

ing

3 P

rop

rieta

ry L

imite

d f

or

a co

nsi

dera

tion

of

R9

0,3

mill

ion

. T

he

fun

din

g w

as u

sed

to

su

bsc

rib

e f

or

co

nve

rtib

le r

ed

eem

able

pre

fere

nce s

har

es

in R

eal

Peo

ple

Inve

stm

en

t H

old

ing

s P

rop

rieta

ry L

imite

d. I

n a

dd

itio

n, t

here

is a

pu

t o

ptio

n in

pla

ce in

fav

ou

r

of

the ID

C w

hic

h w

ou

ld o

pera

te in

a s

imila

r m

ann

er

to t

he fi

nan

cia

l gu

aran

tee a

s ab

ove

.

T

he v

alu

e o

f B

lockb

ust

er

at 3

1 A

ug

ust

20

13 i

s m

ore

th

an s

uffi

cie

nt

to c

ove

r th

e m

inim

um

retu

rn o

f th

e ID

C d

ue to

the u

nd

erl

yin

g v

alu

e o

f its

op

tion

to c

on

vert

its

pre

fere

nce s

har

es

into

ord

inar

y sh

ares

in R

eal

Peo

ple

. Th

e li

kelih

oo

d o

f th

e s

har

eh

old

ers

of

Blo

ckb

ust

er

need

ing

to

inje

ct

add

itio

nal

cas

h t

o s

atis

fy t

he m

inim

um

retu

rn o

f th

e ID

C h

as b

een

ass

ess

ed

as

rem

ote

and

th

ere

fore

bo

th t

he g

uar

ante

e a

nd

th

e p

ut

op

tion

hav

e n

il va

lue a

t th

e r

ep

ort

ing

dat

e.


18.

sh

are

-bas

ed

pay

me

nts

Sh

are

-bas

ed

pay

me

nt

exp

en

ses

O

n 1

Feb

ruar

y 2

00

5, a

new

em

plo

yee s

har

e o

ptio

n s

ch

em

e w

as in

tro

du

ced

by

app

rova

l at

the g

en

era

l m

eetin

g o

f th

e C

om

pan

y. T

he t

erm

s an

d c

on

diti

on

s o

f th

e o

ptio

ns,

as

well

as

deta

ils o

f th

e o

ptio

ns

gra

nte

d, a

re a

s fo

llow

s:

op

tio

ns

gra

nte

d t

o k

ey m

anag

emen

t n

um

ber

of

op

tio

ns

Tota

l at

31

Au

gu

st 2

011

63

32

4 0

00

Exp

ired

21

Feb

ruar

y 2

012

(5 3

34

00

0)

Issu

ed

27

Feb

ruar

y 2

012

16 2

00

00

0

Tota

l at

31

Au

gu

st 2

012

74 1

90

00

0

Exp

ired

23

Ap

ril 2

013

(4 5

72 0

00

)

Forf

eitu

re 3

1 A

ug

ust

20

13(2

5 1

04

50

0)

Tota

l at

31

Au

gu

st 2

013

44

513

50

0

T

he v

est

ing

co

nd

itio

ns

of

all t

he o

ptio

ns

gra

nte

d t

o d

ate a

re:

U

p t

o 2

5%

on

or

afte

r th

e fi

rst

ann

ivers

ary

dat

e o

f ac

cep

tan

ce o

f th

e o

ptio

ns;

U

p t

o 5

0%

on

or

afte

r th

e s

eco

nd

an

niv

ers

ary

of

the a

ccep

tan

ce d

ate;

U

p t

o 7

5%

on

or

afte

r th

e t

hird

an

niv

ers

ary

dat

e;

and

U

p t

o 1

00

% o

n o

r af

ter

the f

ou

rth

an

niv

ers

ary

dat

e.

T

he c

on

trac

tual

life

of

all o

ptio

ns

is s

eve

n y

ear

s fr

om

dat

e o

f g

ran

t.

T

he o

ptio

ns

gra

nte

d t

o d

irecto

rs a

re:

n

um

ber

of

op

tio

ns

20

13

Nu

mb

er

of

op

tio

ns

20

12

Mar

k B

arn

es

30

24

5 0

00

34

817

00

0

Mik

e W

ilso

n

–16

54

0 0

00

Gar

y va

n D

yk10

76

8 5

00

10 7

68

50

0

Ch

arle

s Sa

vag

e3

50

0 0

00

3 5

00

00

0

44

513

50

06

5 6

25

50

0

18.

sh

are

-bas

ed

pay

me

nts

co

ntin

ued

Sh

are

-bas

ed

pay

me

nt

exp

en

ses

co

ntin

ued

wei

gh

ted

aver

age

exer

cise

pri

ce(c

ents

)2

013

nu

mb

ero

f o

pti

on

s2

013

We

igh

ted

ave

rag

ee

xerc

ise

pri

ce(c

en

ts)

20

12

Nu

mb

er

of

op

tio

ns

20

12

Ou

tsta

nd

ing

at

the

b

eg

inn

ing

of

the

pe

rio

d2

074

19

0 0

00

25

63

324

00

0

Gra

nte

d d

uri

ng

th

e p

eri

od

–24

16 2

00

00

0

Forf

eite

d d

uri

ng

th

e p

eri

od

18(2

5 1

04

50

0)

––

Exp

ired

du

rin

g t

he p

eri

od

30

(4 5

72 0

00

)3

0(5

33

4 0

00

)

Ou

tsta

nd

ing

at

the

en

d o

f th

e p

eri

od

194

4 5

13 5

00

20

74 1

90

00

0

Exe

rcis

able

at

the

en

d o

f th

e p

eri

od

153

4 2

63

50

03

010

66

8 0

00

T

he o

ptio

ns

ou

tsta

nd

ing

at

31

Au

gu

st 2

013

hav

e b

een

issu

ed

in a

pri

ce r

ang

e f

rom

15

cen

ts

to 3

0 c

en

ts a

nd

hav

e a

weig

hte

d a

vera

ge e

xerc

ise p

rice o

f 18

cen

ts (

20

12:

20

cen

ts)

and

a

weig

hte

d a

vera

ge c

on

trac

tual

life

of

3,4

0 y

ear

s (2

012

: 4

,34

year

s).

N

o a

dd

itio

nal

op

tion

s w

ere

gra

nte

d o

r ac

cep

ted

du

rin

g t

he y

ear

. T

he e

stim

ate o

f th

e f

air

valu

e o

f th

e o

ptio

ns

gra

nte

d i

n 2

012

is

meas

ure

d o

n a

mo

difi

ed

bin

om

ial

tree m

od

el.

Th

e

co

ntr

actu

al li

fe o

f th

e o

ptio

n (

seve

n y

ear

s) is

use

d a

s an

inp

ut

into

th

is m

od

el.

Exp

ecta

tion

s

of

ear

ly e

xerc

ise a

re in

co

rpo

rate

d.

NO

TE

S T

O T

HE

CO

MP

AN

Y F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013


18.

sh

are

-bas

ed

pay

me

nts

co

ntin

ued

Sh

are

-bas

ed

pay

me

nt

exp

en

ses

co

ntin

ued

20

13r

’00

02

012

R’0

00

Ke

y m

anag

em

en

t p

ers

on

ne

l

Fair

val

ue a

t is

sue d

ate

R’0

00

–3

54

6

Ass

um

pti

on

s

Weig

hte

d a

vera

ge s

har

e p

rice

(cen

ts)

–24

Weig

hte

d a

vera

ge e

xerc

ise p

rice

(cen

ts)

–24

Exp

ecte

d v

ola

tility

(e

xpre

ssed

as

weig

hte

d a

vera

ge v

ola

tility

use

d u

nd

er

the m

od

ified

bin

om

ial t

ree m

od

el)

(%)

–4

0

Op

tion

life

(year

s)–

7

Ris

k-fr

ee r

ate

(%)

–6

,6

Exp

ecte

d d

ivid

en

ds

(%)

––

T

he e

xpecte

d v

ola

tility

is b

ased

on

th

e h

isto

ric v

ola

tility

(cal

cu

late

d b

ased

on

th

e w

eig

hte

d

avera

ge r

em

ain

ing

life

of

the s

har

e o

ptio

ns)

, ad

just

ed

fo

r an

y exp

ecte

d c

han

ges

to f

utu

re

vola

tility

du

e t

o p

ub

licly

ava

ilab

le in

form

atio

n.

Sh

are o

ptio

ns

are g

ran

ted

un

der

a se

rvic

e c

on

diti

on

. Th

is c

on

diti

on

is n

ot ta

ken

into

acco

un

t

in t

he g

ran

t d

ate f

air

valu

e m

eas

ure

men

t o

f th

e s

erv

ices

receiv

ed

. T

here

are

no

mar

ket

co

nd

itio

ns

asso

cia

ted

with

th

e s

har

e o

ptio

n g

ran

ts.

NO

TE

S T

O T

HE

CO

MP

AN

Y F

INA

NC

IAL

ST

AT

EM

EN

TS

co

ntin

ued

For

the y

ear

en

ded

31

Au

gu

st 2

013


Purple Capital Limited (Incorporated in the Republic of South Africa)

(Registration number 1998/013637/06)

Share code: PPE ISIN: ZAE000071411

(Purple Capital or the Company)

This document is important and requires your immediate

attention. If you are in any doubt as to the action you should

take, please consult your stockbroker, accountant, attorney,

banker or other independent professional adviser immediately.

Notice is hereby given that the annual general meeting of

ordinary shareholders (shareholders) of the Company will be held

at Ground Floor, Block B, The Offices of Hyde Park, Strouthos

Place (Off 2nd Road), Hyde Park on Friday, 13 December 2013

at 10h00.

Attendance and votingIn terms of section 59(1)(a) and (b) of the Companies Act No 71

of 2008, as amended, the board of directors has set the record

date for the purpose of determining which shareholders are

entitled to:

receive notice of the annual general meeting, i.e. the Notice

Record Date (being the date on which a shareholder must be

registered in the Company’s share register in order to receive

notice of annual general meeting) as Friday, 8 November

2013; and

participate in and vote at the annual general meeting, i.e. the

Meeting Record Date (being the date on which a shareholder

must be registered in the Company’s share register in order

to participate in and vote at the annual general meeting) as

Friday, 6 December 2013.

Please note that all participants at the annual general meeting

will be required to provide reasonably satisfactory identification

before being entitled to participate in or vote at the annual

general meeting, Forms of identification that will be accepted

include original and valid identity documents, driver’s licences

and passports.

Electronic attendanceThere will be no provision for electronic participation for

attending and voting at the annual general meeting.

Purpose of the meetingThe purpose of this meeting is for shareholders to consider and

if deemed fit, pass the following ordinary resolutions.

1. To receive, consider and approve the audited financial

statements of the Company for the year ended 31 August

2013, together with the reports of the auditors and directors.

2. To authorise the directors to fix the remuneration of the

auditors for the past audit.

NOTICE OF ANNUAL GENERAL MEETING

3. To authorise the directors to confirm the appointment of

the auditors, BDO South Africa Incorporated, as auditors and Fred Bruce-Brand, as the registered auditor responsible for the audit, until the conclusion of the next annual general meeting and to fix their remuneration.

4. To re-elect directors for positions to the board:

4.1 In terms of the Memorandum of Incorporation, the following directors retire by rotation, but being eligible, hereby offer themselves for re-election:

Craig Carter;

Mark Barnes; and

Thembeka Gwagwa.

A brief curriculum vitae in respect of these directors is contained on page 79 of this annual report.

5. Special business Shareholders will be asked to consider and, if deemed fit, to

pass the following resolutions with or without amendment:

5.1 Ordinary resolution number 5 – Unissued shares to be placed under the control of the directors

“Resolved that, all of the authorised but unissued ordinary shares of the Company be and are hereby placed under the control and authority of the directors of the Company and that the directors be and are hereby authorised and empowered to allot and issue all or any such ordinary shares to such person or persons on such terms and conditions and at such times as the directors may from time to time in their discretion deem fit, subject to the proviso that the aggregate number of shares allotted and issued in terms of this resolution shall be limited to 15% (fifteen percent) of the authorised share capital and subject to the provisions of the Companies Act, 2008 (Act 71 of 2008), as amended (the Act) and the Listings Requirements of the JSE Limited (JSE).”

5.2 Ordinary resolution number 6 – General authority to issue shares and to sell treasury shares for cash

“Resolved that, subject to not less than 75% of the votes exercisable by ordinary shareholders in aggregate of the Company, present in person or by proxy or represented and entitled to vote at the annual general meeting at which this ordinary resolution is to be considered, being cast in favour thereof, the directors of the Company and/or any of its subsidiaries from time to time be and are hereby authorised by way of a general authority to allot and issue all or any of the authorised but unissued ordinary shares in the Company and/or sell or otherwise dispose of or transfer, or issue any options in respect of ordinary shares in the Company, for cash, to such person/s on such terms and conditions and at such times as the directors in their discretion deem fit, subject to the Act,

the Memorandum of Incorporation of the Company

and Listings Requirements of the JSE, which Listings

Requirements currently provide, inter alia, that:

PURPLE CAPITAL


the equity securities which are the subject of the

issue for cash must be of a class already in issue, or

where this is not the case, must be limited to such

securities or rights that are convertible into a class

already in issue;

the equity securities must be issued to public

shareholders, as defined by the Listings Requirements

of the JSE, and not to related parties;

this general authority is valid and will extend to the

date of the next annual general meeting of the

Company, provided that it will not extend beyond

15 (fifteen) months from the date of this annual

general meeting;

the number of ordinary shares issued for cash shall

not in the aggregate in any one financial year of

the Company exceed 15% (fifteen percent) or

123 435 753 (one hundred and twenty three

million, four hundred and thirty five thousand,

seven hundred and fifty three) of the Company’s

issued ordinary shares, including instruments

which are convertible into ordinary shares. The

number of ordinary shares which may be issued

for cash shall be based on the number of ordinary

shares in issue at the date of the application, less

any ordinary shares issued by the Company

during the current financial year, provided that any

ordinary shares to be issued for cash pursuant to

a rights issue (announced, irrevocable and fully

underwritten) or acquisition (concluded up to the

date of application) may be included as if they were

ordinary shares in issue at the date of application;

a press announcement giving full details, including

the impact on net asset value, net tangible asset

value, headline earnings and earnings per share, will

be published at the time of any issue representing,

on a cumulative basis within any 1 (one) financial

year, 5% (five percent) or more of the number of

ordinary shares in issue prior to such issue;

in determining the price at which an issue of

ordinary shares will be made in terms of this

authority, the maximum discount permitted will

be 10% (ten percent) of the weighted average

traded price on the JSE of such ordinary shares,

as determined over the 30 business days prior to

the date that the price of the issue is determined or

agreed by the directors of the Company; and

whenever the Company wishes to use ordinary

shares, held as treasury stock by a subsidiary of

the Company, such use must comply with the JSE

Listings Requirements as if such use was a fresh

issue of ordinary shares.”

5.3 Ordinary resolution number 7 – Authorised signatories

“Resolved that, any director of the Company or the

Company Secretary be and is hereby authorised to do

all such things and to sign all such documents issued

by the Company to give effect to ordinary resolutions

numbers 5 and 6 and special resolutions numbers 1, 2

and 3.”

5.4 Special resolution number 1 – Acquisition of own

shares

“Resolved that, the Company hereby approves, as a

general approval, the acquisition from time to time, by

the Company and/or any of its subsidiary companies,

of issued shares of the Company upon such terms and

conditions and in such amounts as the directors of the

Company may from time to time decide, subject to

the Memorandum of Incorporation of the Company,

the provisions of the Act and the Listings Requirements

of the JSE and on the basis that the directors will,

at the time of each repurchase undertaken, ensure

that following each repurchase, (a) the Company will

satisfy the solvency and liquidity tests contemplated in

section 46 (1)(b) of the Act and (b) there will be no

subsequent material change to the financial position of

any company in the Purple Capital group, provided that:

any such repurchase of shares is effected through

the order book operated by the JSE trading system

and done without any prior understanding or

arrangement between the Company and the

counterparty (reported trades are prohibited);

the Company is authorised thereto by its

Memorandum of Incorporation;

the general authority shall only be valid until the

Company’s next annual general meeting provided

that it shall not extend beyond 15 (fifteen) months

from the date of passing of this special resolution;

provided that the repurchases may not be made

at a price greater than 10% (ten percent) above the

weighted average of the market value for the issued

shares for the 5 (five) business days immediately

preceding the date on which any acquisition by the

Company and/or any of its subsidiary companies is

effected;

at any point in time the Company may only appoint

one agent to effect any repurchase(s) on the

Company’s behalf;

the Company or its subsidiary may not repurchase

shares during a prohibited period as defined in

paragraph 3,67 of the Listings Requirements of the

JSE;

repurchases of shares, by the Company, and/or

its subsidiaries, in aggregate in any one financial

year may not exceed 20% (twenty percent) of the

Company’s issued share capital pursuant to this

general authority;

subsidiaries of the Company shall not acquire,

in aggregate, more than 10% of the Company’s

issued share capital; and

an announcement will be published as soon as the

Company has cumulatively repurchased 3% of the

initial number (the number of that class of share

in issue at the time that the general authority is

granted) of the relevant class of securities and for

each 3% in aggregate of the initial number of that

class acquired thereafter, containing full details of

such repurchases.”


NOTICE OF ANNUAL GENERAL MEETING continued

In terms of the Listings Requirements of the JSE, on

the date of this notice the directors consider that were

the Company to effect the maximum repurchase

contemplated above:

the Company and its subsidiaries will be able in the

ordinary course of business to pay its debts as they

become due, for a period of 12 months after the

date of the notice of the annual general meeting;

the consolidated assets of the Company and its

subsidiaries will be in excess of the consolidated

liabilities of the Company and its subsidiaries for a

period of 12 months after the date of the notice

of the annual general meeting, For this purpose,

the assets and liabilities should be recognised and

measured in accordance with the accounting

policies used in the latest annual group financial

statements;

the issued ordinary shares capital and reserves

of the Company and its subsidiaries for a period

of 12 months after the date of the notice of the

annual general meeting will be adequate for the

purpose of the business of the Company and its

subsidiaries;

the working capital available to the Company and

its subsidiaries for a period of 12 months after the

date of the notice of the annual general meeting

will be adequate for the requirements of the

Company and its subsidiaries; and

the Company will provide its sponsor and the JSE

with all documentation as required in Schedule 25

of the Listings Requirements of the JSE, and will

not commence any repurchase programme until

the sponsor has signed off on the adequacy of its

working capital, advised the JSE accordingly and

the JSE has approved this documentation.

Shareholders’ attention is drawn to the following

relevant general information, which is required by the

Listings Requirements of the JSE, with regard to the

resolution granting a general authority to the Company

to repurchase securities:

Directors of the Company: Refer to page 20 of the

Company’s annual report.

Major shareholders: Refer to page 60 of the

Company’s annual report.

Directors’ interest in securities: Refer to page 20

of the Company’s annual report.

Share capital of the Company: Refer to page 20

of the Company’s annual report.

Responsibility statement: The directors, whose

names are given on page 20 of the Company’s

annual report, collectively and individually accept

full responsibility for the information given and

certify that to the best of their knowledge and belief

there are no facts that have been omitted which

would make any statement false or misleading,

and that all reasonable enquiries to ascertain such

facts have been made and that the annual report

and notice of annual general meeting contains all

information required by the Listings Requirements

of the JSE.

Litigation statement: There are no legal or

arbitration proceedings, including any proceedings

that are pending or threatened, of which the

Company is aware, that may have or have had

in the recent past, being at least the previous

12 months, a material effect on the Company’s

financial position.

Material changes: Other than the transactions

mentioned in “Subsequent events” on page 20 of

the Company’s annual report, there has been no

material change in the financial or trading position

of the Company since 31 August 2013.

At the present time the directors have no specific

intention with regard to the utilisation of this authority,

which will only be used if the circumstances are

appropriate.

Reasons for and effect of the special resolution

The reason for and effect of the passing of the aforesaid

special resolution is so as to enable the Company

and/or any of its subsidiary companies to acquire

the issued shares of the Company from time to time

upon the terms and conditions and in the amounts as

the directors of the Company may from time to time

decide, subject to the requirements of the Act and the

Listings Requirements of the JSE at any time while the

general authority exists.

5.5 Special resolution number 2 – Financial assistance to related and inter-related entities

“Resolved that the directors of the Company may,

subject to compliance with the requirements of the

Memorandum of Incorporation of the Company and

the Act, authorise the provision by the Company, at

any time and from time to time during the period of

two (2) years commencing on the date of adoption

of this special resolution, of direct or indirect financial

assistance, by way of a loan, guarantee of a loan or other

obligation or the securing of a debt or other obligation

to any one or more related or inter-related companies

or corporations of the Company and/or to any one

or more members of any such related or inter-related

company or corporation related to any such company

or corporation as outlined in section 2 of the Act, on

such terms and conditions as the directors may deem

fit.”

Reasons for and effect of the special resolution

The reason for the passing of this special resolution

is that, on a strict interpretation of section 45 of the

Act, the Company may not provide the financial

assistance contemplated in such section without a

special resolution. The above resolution gives the

directors the authority to authorise the Company to

provide direct or indirect financial assistance, by way

of a loan, guaranteeing of a loan or other obligation

or securing of a debt or other obligation, to the


recipients contemplated in special resolution number 2, It is difficult to foresee the exact details of financial assistance that the Company may be required to provide over the next two (2) years, It is essential, however, that the Company is able to organise effectively its internal financial administration, For these reasons and because it would be impractical and difficult to obtain shareholder approval every time the Company wishes to provide financial assistance as contemplated above, it is necessary to obtain the approval of shareholders, as set out in special resolution number 2.

It should be noted that this resolution does not authorise financial assistance to a director or a prescribed officer or any company or person related to a director or prescribed officer.

5.6 Special resolution number 3 – Approval of directors’ remuneration

“Resolved that unless otherwise determined by the Company in general meeting, the fees payable to non-executive directors for their services as directors, for the financial year ending 31 August 2014, as set out below, be approved:

Craig Carter: R120 000 per year.

Ronnie Lubner and Dennis Alter: R25 000 per year.

Thembeka Gwagwa: R150 000 per year.

5.7 Special resolution number 4 – To approve the change of the Company’s name from Purple Capital Limited to Purple Group Limited

“Resolved that, in accordance with section 16(1)(c) of the Companies Act, the Company’s Memorandum of Incorporation be and hereby is amended to give effect to the change of the Company’s name from Purple Capital Limited to Purple Group Limited.”

Reason for and effect of special resolution 4

Historically the main business of Purple Capital was to act as a capital provider which provided funding and facilities to other entities; going forward the Company will be applying its resources and focus to its remaining core businesses necessitating the name to change to Purple Group Limited.

Implementation of the change of name The proposed new name has been reserved by the Companies and Intellectual Property Commission (CIPC). The abbreviated name of the Company for the purposes of the JSE trading system will be “Purple”, the JSE alpha code will be “PPE” and the new ISIN will be ZAE000185526.

For a period of not less than one year, the Company will reflect the former name “Purple Capital Limited” in brackets beneath the new name of “Purple Group Limited” on all documents of title.

The change of name will result in the certificated shareholders of the Company having to exchange their existing share certificates for new share certificates reflecting the new name of the Company. The procedure in respect of the surrender of share

certificates is set out below.

Percentage voting rightsThe minimum percentage of voting rights that is required for this

resolution to be adopted is 75% of the voting rights to be cast on

the resolution.

Salient datesSee the section titled Salient Dates and Times situated on page 76.

Surrender of share certificates1. Procedure for surrendering existing documents of title

1.1 Dematerialised shareholders need not take any action

with regard to the name change as their accounts at

the CSDP or broker will be automatically updated with

the name change by the CSDP or broker.

1.2 It is strongly recommended that certificated shareholders

take this opportunity to dematerialise their shares.

To do this the shareholder should approach a CSD

Participant or their banker or broker as soon as possible

to arrange for the dematerialisation of their shares. In

the event that shareholders wish to retain their shares

in certificated form then the following procedures

should be followed.

1.3 Following the approval of the change of name of the

Company at the AGM, it will be necessary to recall share

certificates from certificated shareholders in order to

replace them with new share certificates reflecting the

change of name which new share certificates will be

sent to certificated shareholders, by registered post, at

the risk of such shareholders.

1.4 To facilitate the timely receipt by certificated

shareholders of replacement share certificates,

certificated shareholders who wish to anticipate the

name change and who do not wish to deal in their

existing shares prior to the name change are required

to surrender their share certificates to the Transfer

Secretaries by completing the attached form of

surrender (blue) in accordance with the instructions

and return it to the Transfer Secretaries.

1.5 Share certificates so received will be held in trust by

the Transfer Secretaries pending the name change

being approved by shareholders at the AGM. In the

event that the name change is not approved at the

AGM, the Transfer Secretaries will, within five business

days thereafter, return the share certificates to the

certificated shareholders concerned, by registered

post, at the risk of such shareholders.

1.6 Those shareholders who surrender their existing share

certificates by 12:00 on Friday, 24 January 2014 will

have their new share certificates posted to them within

five business days of the later of the record date and

the date of receipt by the Transfer Secretaries of their

existing share certificates.

1.7 No receipt will be issued for the certificates lodged,

except that lodging agents for any certificated

shareholders who require special transaction receipts

are requested to prepare such receipts and submit them

for stamping together with the documents/s lodged.


NOTICE OF ANNUAL GENERAL MEETING continued

1.8 Should the name change be approved and implemented shareholders who have not already surrendered their certificates will be required to do so under the cover of the attached form of surrender.

1.9 If any existing documents of title have been lost or destroyed and the certificated shareholder provides evidence to this effect to the satisfaction of the directors then Purple may dispense with the surrender of such documents of title against provision of acceptable indemnity.

1.10 Certificated shareholders whose registered addresses in the Company’s share register are outside the common monetary area or where the relevant share certificates are restrictively endorsed are referred to paragraph 2 below.

1.11 In the event that certificated shareholders do not complete the attached form of surrender (blue) and who later wish to obtain a share certificate in the new name of the Company such shareholders will be required to return their share certificates to the Transfer Secretaries together with certified copies of identity documents, if in own name, or if otherwise, certified copies of company/trust documents.

1.12 The results of the AGM approving the change of name will be released on SENS on Friday, 13 December 2013 and published in the press on Tuesday, 17 December 2013. Additional forms of surrender will be available on request from the office of the transfer secretaries of the Company.

2. Instructions for non-residents

In the case of certificated shareholders whose registered addresses in the Company’s share register in South Africa are outside the common monetary area, or where the relevant certificates are restrictively endorsed in terms of the South African Exchange Control Regulations, the following will apply in the case of shareholders who have not dematerialised their shares with Strate:

2.1. Non-residents who are emigrants from the common monetary area

The replacement share certificate reflecting the change of name will be restrictively endorsed in terms of the South African Exchange Control Regulations and will be sent to the shareholder’s authorised dealer in foreign exchange in South Africa controlling their blocked assets.

2.2 All other non-residents

The replacement share certificate reflecting the change of name will be restrictively endorsed “non-resident” in terms of the South African Exchange Control Regulations.

Shareholders who have dematerialised their shares through a CSDP or broker must not complete the form of surrender as the surrender of the relevant documents of title will be handled by their CSDP or broker in terms of the custody agreement entered into between the

shareholder and the CSDP or broker on their behalf.

Salient dates and times

Record date to receive notice of AGM Friday, 8 November 2013

Notice of AGM to be posted to shareholders on Thursday, 14 November 2013

Last day to trade to be recorded in the register on the record date for participation in the AGM Friday, 29 November 2013

Record date to participate in and vote at the AGM Friday, 6 December 2013

Last day for lodging forms of proxy at 10:00 on Wednesday, 11 December 2013

AGM at 10:00 on Friday, 13 December 2013

Results of AGM released on SENS on Friday, 13 December 2013

Special resolution in respect of change of name expected to be registered by the CIPC by no

later than Thursday, 9 January 2014

Finalisation date in respect of the change of name of the Company Friday, 10 January 2014

Last day to trade in Purple Capital shares in respect of the change of name of the Company Friday, 17 January 2014

Listing of and trading in new shares on the JSE under JSE code PPE and ISIN: ZAE000185526

from commencement of business on or about Monday, 20 January 2014

Record date Friday, 24 January 2014

Date of issue of new replacement share certificates provided that the old share certificates

have been lodged by 12:00 on the record date (share certificates received after this time will

be posted within five business days of receipt) on or about Monday, 27 January 2014

Dematerialised shareholders will have their accounts at their CSDP or broker updated on Monday, 27 January 2014

Note: Any changes to the above dates will be announced on SENS subject to JSE approval.

In compliance with section 62(3)(c) of the Act and/or the Listings Requirements it is confirmed that a voting majority of 50% is required

for the approval of ordinary resolutions number 1 to 7, For the special resolutions a 75% voting majority is required by law and the JSE

Listings Requirements.


Voting and proxiesAll shareholders will be entitled to attend and vote at the annual

general meeting or any adjournment thereof. On a show of

hands, every shareholder of the Company who, being an

individual, is present or is present by proxy at the annual general

meeting or which, being a company or body corporate, is

represented thereat by a representative appointed, shall have

one vote only and on a poll every shareholder of the Company

(whether an individual or a company or a body corporate) or

represented by a proxy at the annual general meeting shall have

one vote for every ordinary share held by such shareholder.

Holders of dematerialised shares, other than with “own name”

registration intending to attend the annual general meeting,

must inform their Central Securities Depository Participant

(CSDP) or broker of their intention and must obtain the necessary

authorisation from their CSDP or broker to attend or, if unable

to attend the annual general meeting in person, should provide

their CSDP or broker with their voting instructions in terms of

their agreement with the CSDP or broker in the manner and time

stipulated therein.

The necessary form of proxy is attached for the convenience

of certificated shareholders and dematerialised shareholders

with “own name” registration who cannot attend the annual

general meeting but who wish to be represented thereat. Any

shareholder entitled to attend and vote at the annual general

meeting may appoint one or more persons to attend, speak

and vote in place of such shareholder. A proxy so appointed

need not be a shareholder of the Company. In order to be valid,

duly completed proxy forms must be received by Link Market

Services South Africa Proprietary Limited, 13th Floor, Rennie

House, 19 Ameshoff Street, Braamfontein, Johannesburg 2001

(P0 Box 4844, Johannesburg 2000) by no later than 10h00 on

Wednesday, 11 December 2013.

Record datesThe posting record date, being the date that shareholders must

be recorded in the register to be eligible to receive this notice of

annual general meeting is Friday, 8 November 2013.

The last day to trade in order to be eligible to vote at the annual

general meeting is Friday, 29 November 2013.

The voting record date, being the date that shareholders must

be recorded in the register to be eligible to speak and vote at the

annual general meeting is Friday, 6 December 2013.

By order of the board

Peter BarrableCompany Secretary

14 November 2013


ShAREhOLDER RIGhTS

In terms of section 58 of the Companies Act, No. 71 of 2008 (as

amended), shareholders have rights to be represented by proxy

as herewith stated.

1. At any time, a shareholder of the Company may appoint any

individual, including an individual who is not a shareholder of

the Company, as a proxy to:

a. participate in, and speak and vote at, a shareholders

meeting on behalf of the shareholder; or

b. give or withhold written consent on behalf of the

shareholder to a decision contemplated in section 60.

Provided that the shareholder may appoint more than one

proxy to exercise voting rights attached to different shares

held by the shareholder.

2. A proxy appointment:

a. must be in writing, dated and signed by the shareholder;

and

b. remains valid for:

(i) one year after the date on which it was signed; or

(ii) any longer or shorter period expressly set out in

the appointment, unless it is revoked in a manner

contemplated in subsection (4)(c), or expires earlier

as contemplated in subsection (8) (d).

3. Except to the extent that the Memorandum of Incorporation

of the Company provides otherwise:

a. a shareholder of the Company may appoint two or more

persons concurrently as proxies, and may appoint more

than one proxy to exercise voting rights attached to

different securities held by the shareholder;

b. a proxy may delegate the proxy’s authority to act on

behalf of the shareholder to another person, subject to

any restriction set out in the instrument appointing the

proxy; and

c. a copy of the instrument appointing a proxy must be

delivered to the Company, or to any other person on

behalf of the Company, before the proxy exercises any

rights of the shareholder at a shareholders meeting.

4. Irrespective of the form of instrument used to appoint a

proxy:

a. the appointment is suspended at any time and to the

extent that the shareholder chooses to act directly and

in person in the exercise of any rights as a shareholder;

b. the appointment is revocable unless the proxy

appointment expressly states otherwise; and

c. if the appointment is revocable, a shareholder may

revoke the proxy appointment by:

(i) canceling it in writing, or making a later inconsistent

appointment of a proxy; and

(ii) delivering a copy of the revocation instrument to the

proxy, and to the Company.

5. The revocation of a proxy appointment constitutes a

complete and final cancellation of the proxy’s authority to

act on behalf of the shareholder as of the later of:

a. the date stated in the revocation instrument, if any; or

b. the date on which the revocation instrument was

delivered as required in subsection(4) (c) (ii).

6. If the instrument appointing a proxy or proxies has been

delivered to the Company, as long as that appointment

remains in effect, any notice that is required by this Act or the

Company’s Memorandum of Incorporation to be delivered

by the Company to the shareholder must be delivered by the

Company to

a. the shareholder; or

b. the proxy or proxies, if the shareholder has

(i) directed the Company to do so, in writing; and

(ii) paid any reasonable fee charged by the Company

for doing so

7. A proxy is entitled to exercise, or abstain from exercising, any

voting right of the shareholder without direction, except to

the extent that the Memorandum of Incorporation, or the

instrument appointing the proxy, provides otherwise.

8. If the Company issues an invitation to shareholders to

appoint one or more persons named by the Company as

a proxy, or supplies a form of instrument for appointing a

proxy:

a. the invitation must be sent to every shareholder which

is entitled to notice of the meeting at which the proxy is

intended to be exercised;

b. the invitation, or form of instrument supplied by the

Company for the purpose of appointing a proxy, must:

(i) bear a reasonably prominent summary of the rights

established by this section;

(ii) contain adequate blank space, immediately

preceding the name or names of any person or

persons named in it, to enable a shareholder to write

in the name and, if so desired, an alternative name of

a proxy chosen by the shareholder; and

(iii) provide adequate space for the shareholder to

indicate whether the appointed proxy is to vote in

favour of or against any resolution or resolutions to

be put at the meeting, or is to abstain from voting;

c. the Company must not require that the proxy

appointment be made irrevocable; and

d. the proxy appointment remains valid only until the end

of the meeting at which it was intended to be used,

subject to subsection (5).

9. Subsection (8) (b) and (d) do not apply if the Company

merely supplies a generally available standard form of proxy

appointment on request by a shareholder.


Craig CarterCraig has over 25 years’ experience, predominantly in financial

services, including Treasury and Corporate Finance. Craig joined

Purple Capital at its inception as COO and most recently was

COO for Global Trader. He holds a BSc in Computer Science

and Statistics and an MBA from Wits. Craig is taking a break this

year from full-time employment but has remained on the Purple

Capital board and audit committee.

Mark BarnesMark Barnes has over 25 years’ experience in positions of

leadership in the financial services market in South Africa. He

holds a BBusSc (Actuarial Science) from the University of Cape

Town and a PMD from Harvard Business School. Mark joined

Standard Merchant Bank (SMB) in corporate finance, a division

he subsequently led for a number of years. During this period

Mark played a leading advisory role in many major deals in

corporate South Africa.

Mark subsequently took responsibility for SMB’s Treasury

operations and when SMB merged with the corporate areas of the

Standard Bank Group to form SCMB he was appointed as Deputy

Managing Director with operational responsibility for the Standard

Bank Group’s Treasury and Project Finance Divisions. Mark was

involved in significant asset based financing structures; led the

implementation of two gold producer structured funding deals

which were the biggest ever in the world; and led the team which

raised R1 billion of funding by issuing the first ever listed seven

year fixed-rate corporate bond in the local market. Mark was a

BRIEF CURRICULUM vITAE OF DIRECTORS STANDING FOR ELECTION

member of the Standard Bank Group’s Executive Committee until

he resigned in November 1996 to take up the position of Group Chief Executive of Capital Alliance Holdings Limited.

Capital Alliance was an insurance and financial services group listed on the Johannesburg Stock Exchange. Mark led the strategy to merge the banking and asset management interests of Capital Alliance with the leading private equity partnership of Capital Partners to form Brait, an international investment and merchant banking group listed on the London, Luxembourg and Johannesburg Stock Exchanges in 1998. Mark was the Group CEO of Brait until March 2000 when he left to form his own corporate finance and investment banking business, Calajero.

Mark has previously served as a member of the boards of several companies listed on the JSE and he is currently a Trustee of the World Wildlife Fund for Nature and a director of Plate Glass. In February 2005 Mark acquired a significant stake in Purple Capital where, as Executive Chairman, he continues to lead it on its growth strategy.

Thembeka GwagwaThembeka Gwagwa is the General Secretary of DENOSA and is a director of DIHOLD. Thembeka is involved in training in the health care sector and teaching nursing students, community members and workers.

She is involved in planning, organising and designing health and safety courses for workers and management. Thembeka holds a BCur Degree and Diplomas in Nursing Administration and

Nursing Education.


CORPORATE INFORMATION

Nature of business Purple Capital Limited is a financial services company.

DirectorsMark Barnes Executive Chairman

Charles Savage Chief Executive Officer

Gary van Dyk Chief Financial and Operations Officer

Dennis Alter Independent Non-executive Director

Craig Carter Non-executive Director

Thembeka Gwagwa Independent Non-executive Director

Ronnie Lubner Non-executive Director

Business addressBlock B, The Offices of Hyde Park

Strouthos Place

Hyde Park

2196

Postal addressPO Box 411449

Craighall

2024

BankersMercantile Bank Limited

AuditorsBDO South Africa Incorporated

Registered Auditors

Group Secretary Peter Barrable

Block B, The Offices of Hyde Park

Strouthos Place

Hyde Park

2196

Share registrarsLink Market Services South Africa Proprietary Limited

13th Floor, Rennie House

19 Ameshoff Street

Braamfontein

2001

Company registration number 1998/013637/06

ISINZAE000071411

VAT registration number4640178168

Tax number9552/065/64/2

FORM OF PROXY





FOR USE BY CERTIFICATED SHAREHOLDERS AND DEMATERIALISED SHAREHOLDERS WITH “OWN NAME” REGISTRATION ONLYFor use at the annual general meeting of members to be held in the boardroom, Purple Capital Limited, Ground Floor, Block B, The

Offices of Hyde Park, Strouthos Place (Off 2nd Road), Hyde Park on Friday, 13 December 2013 at 10h00 (the “annual general meeting”)

I/We (Name in block letters)

of (address)

being a member/s of Purple Capital Limited, holding ordinary shares hereby appoint:

1. or, failing him/her,

2. or, failing him/her,

3. or, failing him/her

4. the Chairman of the annual general meeting, as my proxy to vote for me/us and on my/our behalf at the annual general meeting

of the Company to be held at 10h00 on Friday, 13 December 2013 and at any adjournment thereof and to speak and act for me/

us and, on a poll, vote on my/our behalf.

My/Our proxy shall vote as follows:

Number of ordinary shares

In favour of Against Abstain

Ordinary resolution number 1: Adoption of annual financial statements for the year

ended 31 August 2013

Ordinary resolution number 2: Remuneration of auditors

Ordinary resolution number 3: Appointment of auditors

Ordinary resolution number 4: Ratification of re-election of Craig Carter, Mark Barnes

and Thembeka Gwagwa

Ordinary resolution number 5: To place the unissued shares of the Company under the

control of the directors

Ordinary resolution number 6: To authorise the Company to issue shares and to sell

treasury shares for cash under a general authority

Ordinary resolution number 7: To authorise the signature of documentation

Special resolution number 1: To authorise the Company to purchase its own shares

Special resolution number 2: Financial assistance

Special resolution number 3: Directors’ remuneration to 31 August 2014

Special resolution number 4: Approval of the name change to Purple Group Limited

Indicate instruction to proxy by way of a cross in space provided above.

Unless otherwise instructed, my/our proxy may vote as he/she thinks fit.

Signed this day of 2013

Signature

Please read the notes on the reverse side hereof.

PURPLE CAPITAL

NOTES TO ThE FORM OF PROXY

1. Purple Capital shareholders who have dematerialised their

shares through a CSDP or broker must not complete this

form of proxy but must provide their CSDP or broker with their

voting instructions, except for Purple Capital shareholders

who have elected ‘own name’ registration in the subregister

through a CSDP or broker, It is these shareholders who must

complete this form of proxy and lodge it with the transfer

secretaries.

2. Holders of dematerialised Purple Capital shares wishing to

attend the annual general meeting must inform their CSDP

or broker of such intention and request their CSDP or broker

to issue them with the relevant authorisation to attend.

3. A member entitled to attend and vote at the annual general

meeting may appoint one or more proxies to attend, vote

and speak in his/her/its stead at the annual general meeting,

A proxy need not be a member of the Company.

4. A member may insert the name of a proxy or the names

of two alternative proxies of the member’s choice in the

space/s provided, with or without deleting “the Chairman

of the annual general meeting”, but any such deletion

must be initialled by the member, The person whose name

stands first on the form of proxy and who is present at the

annual general meeting will be entitled to act as proxy to the

exclusion of those whose names follow.

5. Please insert an “X” in the relevant spaces according to how

you wish your votes to be cast, However, if you wish to cast

your votes in respect of a lesser number of shares than you

own in the Company, insert the number of shares held in

respect of which you desire to vote, Failure to comply with

the above will be deemed to authorise the proxy to vote or

to abstain from voting at the annual general meeting as he/

she deems fit in respect of all the member’s votes exercisable

thereat, A member or his/her proxy is not obliged to use all

the votes exercisable by the member or by his/her proxy, but

the total of the votes cast and in respect whereof abstention

is recorded may not exceed the total of the votes exercisable

by the member or by his/her proxy.

6. Holders of dematerialised shares, other than with “own name”

registration must inform their CSDP or broker of whether

or not they intend to attend the annual general meeting

and obtain the necessary authorisation from their CSDP or

broker to attend the annual general meeting or provide their

CSDP or broker with their voting instructions should they not

be able to attend the annual general meeting in person.

7. Forms of proxy must be received at the Company’s

transfer secretaries, Link Market Services South Africa

Proprietary Limited, 13th Floor, Rennie House, 19 Ameshoff

Street, Braamfontein, Johannesburg, 2001 (PO Box 4844,

Johannesburg, 2000) by not later than 10h00 on Wednesday,

11 December 2013.

8. The completion and lodging of this form of proxy will not

preclude the relevant member from attending the annual

general meeting and speaking and voting in person thereat

to the exclusion of any proxy appointed in terms hereof.

9. Documentary evidence establishing the authority of a

person signing this form of proxy in a representative capacity

must be attached to this form of proxy unless previously

recorded by the Company’s transfer secretaries or waived by

the Chairman of the annual general meeting.

10. Any alteration or correction made to this form of proxy must

be initialled by the signatory/ies.

11. A minor must be assisted by his/her parent or guardian

unless the relevant documents establishing his/her legal

capacity are produced or have been registered by the

transfer secretaries of the Company.

12. The Chairman of the annual general meeting may reject or

accept a form of proxy which is completed and/or received,

other than in accordance with these notes, if the Chairman

is satisfied as to the manner in which the member wishes to

vote.





Please read the instructions overleaf. Non-compliance with these instructions may result in the rejection of this form.

If you are in any doubt as to how to complete this form, please consult your stockbroker, banker, attorneys, accountant or other professional advisor.

Note: A separate form is required for each shareholder.

To: Purple Capital Limited

c/o, Link Market Services South Africa Proprietary Limited,

13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, Johannesburg, 2001

(PO Box 4844, Johannesburg, 2000)

TO BE COMPLETED BY PURPLE CERTIFICATED ShAREhOLDERS

I/We hereby surrender and enclose the Purple Capital ordinary share certificate(s) listed below:

Certificate number(s) Number of Purple shares covered by each certificate

Total

I/We irrevocably and in rem suam authorise you to produce the signature of such documents that may be necessary to complete the

replacement of the Purple Capital ordinary shares with shares in the new name of Purple Group Limited.

I/We hereby instruct you to forward the replacement share certificate/s to me/us, by registered post, at my/our own risk, to the address

below and confirm that, where no address is specified, the share certificate/s will be forwarded to my/our address recorded in the share

register of Purple Capital.

My/Our signature(s) on the form of surrender constitutes my/our execution of this instruction.

Assisted by (where applicable)

Name Capacity Signature

The shareholder must complete the following information in BLOCK LETTERS: Date 2013

Surname or Name of corporate body

First names (in full, if applicable)

Title (Mr, Mrs, Miss, Ms, etc.)

Postal address (preferably PO Box address)

Postal code

Telephone number including area code (office hours)

Cell phone number

FORM OF SURRENDER(for use by certificated shareholders only)

PURPLE CAPITAL

Instructions1. A receipt will not be issued for this form of surrender, or

the documents lodged with it. Lodging agents who require

special transaction receipts are requested to prepare such

receipts and submit them for stamping with the other

documents lodged.

2. A shareholder married in community of property or a minor

must ensure this form of surrender is also signed by his/her

spouse or parent or guardian, as the case may be.

3. Where Purple Capital ordinary shares are jointly held, this

form must be signed by joint holders.

4. If this form of surrender is signed under power of attorney,

such power of attorney must be produced, unless it has

already been registered with the transfer office of Purple

Capital.

5. If this form of surrender is signed on behalf of a company,

close corporation, pension or provident fund, it must be

accompanied by a certified copy of the resolution authorising

the signature, unless it has already been registered with the

transfer office of Purple Capital.

Stakeholder Value


leaderShiP

PaSSion

diVerSityeducation

relationShiPS

hard work

team work

Product offering


truSt

tranSParency

SerVice excellence

embracing change

reSPect

commitment



Pride

Stakeholder Value


leaderShiP

PaSSion

diVerSity

education

relationShiPS

hard work

team work

Product offering


truSt

embracing change

reSPect

relationShiP

entrePreneurial SPirit

innoVation

riSk control

Pride

Stakeholder Value


Value creation

PaSSion

diVerSity

education

relationShiPS

hard work

team work

Product offering


tranSParency



Stakeholder Value


leaderShiP

diVerSity

education

relationShiPS

hard workteam work

Product offering


SerVice excellence

embracing change

reSPect

commitment


innoVation

Romi Appel Mark Barnes Zeyn Bodhanya Hannetjie Campher Paul Chakaduka Crystal Giuricich

Clinton Crawford Aneesa Daniels Pierre Dymant Carlos Fernandes Beverley Ferreira Rogerio

Ferreira Tristan Finnemore Melanie Fourie David Helena Fundiswe Jodwana Simon Kay

Andrew Kinsey Bradley Leather Isabella le Roux Gideon Loots Khotso Machere Thobile

Mahlangu Lerato Makhene Thomas Makofane Craig Margolius Faith Mene Lola Mendes

Ruth Mokolo Ivie Moloi Nilan Morar Lungile Msibi Tanya Naidoo Phindile Ngubane

Sandile Ngwenya Almero Oosthuizen Kyle Pretorius Oliver Russell Charles Savage

Lee Scott Gregory Strachan Thabo Tawarima Zidon Lincoln Vallen Theunis van der

Walt Gary van Dyk Paul Jansen van Vuuren Gavin Viljoen Mark Wilkes

our team

www.purplecapital.com

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