JASCO ELECTRONICS HOLDINGS LIMITED - JAS01 Update to audited results for year ended 30 June 2018

JAS01 – Update to audited results for year ended 30 June 2018

JASCO ELECTRONICS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa with limited liability under
registration number 1987/003293/06)
(“Jasco Electronics” or “Issuer”)


Date: 27 November 2018


JAS01 – ZAG000123324


UPDATE TO AUDITED RESULTS FOR YEAR ENDED 30 JUNE 2018


Following the announcement dated 23 November 2018, where noteholders were
advised that the annual financial statements of the Issuer for the year ended
30 June 2018 (“the financial statements”) were made available for inspection at
the     Issuer’s     registered     office     and     on     their     website
http://jasco.co.za/Investor-Relations-Financial-Reports/annual-results,
noteholders are referred to the subsequent events section of the Audited
Results for the year ended 30 June 2018, detailing the reportable irregularity,
the legal dispute raised by the minority shareholders of Reflex Solutions (Pty)
Ltd, and PwC Inc.’s unmodified audit opinion in the modified Independent
Auditor’s Report contained in the Audited Annual Financial Statements for the
year ended 30 June 2018, and the restatement of prior year’s results, to note
the following information in terms of section 7.6 and 7.18(e) of the JSE Debt
Listings Requirements:


1. The audit report on the financial statements of the Issuer is unqualified,
   and unmodified, with an emphasis of matter paragraph which reads: “We draw
   attention to note 34.3 to the Annual Financial Statements, which indicates
   that a legal dispute has arisen between the company and the minority
   shareholders of Reflex Solutions (Pty) Ltd over the ownership of Reflex
   Solutions (Pty) Ltd, the outcome of which is uncertain. Our opinion is not
   modified in respect of this matter."


2. Report on other legal and regulatory requirements: “In accordance with our
   responsibilities in terms of section 44(2) and 44(3) of the Auditing
   Profession Act (APA), we report that we have identified a reportable
   irregularity in terms of the Auditing Profession Act. We have reported such
   matter to the Independent Regulatory Board for Auditors. The matters
   pertaining to the reportable irregularity has been described in note 36 to
   the Annual Financial Statements.”

3. Restatements to previously published annual financial statements have been
   included in the financial statements. Under the guidance of the group’s new
   external auditors PwC Inc., the Issuer worked through certain accounting
   changes, which resulted in a number of aspects of the results being
   interpreted differently in terms of International Financial Reporting
   Standards (IFRS). Consequently, adjustments were required in accordance with
   IFRS, resulting in the restatement of the prior year’s results as detailed
   in note 35 of the financial statements.
With reference to note 36 on page 86 of the June 2018 annual financial
statements it is disclosed that PwC Inc. followed up this report with a second
report as required by APA, advising IRBA that, in its view, the reportable
irregularities are no longer occurring.


With reference to note 34.3 on page 79 of the Audited Annual Financial
Statements for the year ended 30 June 2018, it is disclosed that the outcome of
this dispute may affect the timing of the payment of the second tranche
payment. Based on legal advice, Jasco confirms that its ownership of a
controlling interest is not in doubt, only the possible timing of the final
payment. Jasco will provide further relevant updates as negotiations continue.



Further information on the Programme please contact:




Redinkcapital
Charlize Wiederkehr
Tel: +27 10 0052014
Email: charlize@red-inc.co.za




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