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KIR - Kairos - Update on year end results for the year ended 28 February 2011 (Change in IAS 16 Treatment) Kairos Industrial Holdings Limited (Incorporated in the Republic of South Africa) Registration number 1987/002927/06 Share code: KIR ISIN: ZAE000011284 ("Kairos" or "the company") UPDATE ON YEAR END RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2011 (CHANGE IN IAS 16 TREATMENT) Shareholders were advised in the Annual Integrated Report for the year ended 28 February 2011 that the audit opinion had been qualified in respect of plant and equipment which had not been revalued with sufficient regularity as determined by IAS 16 and that the group`s records did not permit the application of adequate alternative audit procedures to satisfy the auditors as to the accuracy and valuation of plant and equipment, depreciation and revaluation reserve. Whilst the group`s current accounting policy for plant and equipment requires regular revaluation of the assets, management were unable to satisfy the auditors on the fair values of plant and equipment for the year ended 28 February 2011, notwithstanding external valuations undertaken on certain, although not all of the assets. At the request of the JSE Limited, management have undertaken to determine what the value of the assets would be if there was to be a change in accounting policy to the cost basis and the possible impact on the statement of comprehensive income. This would entail the reversal of any revaluation surplus arising from the revaluation of assets in the past and the restatement of the depreciation charge for the current year and the adjustment to opening retained income for the prior year adjustment. The effects of the adjustment to the statement of comprehensive income would be as follows: R`000 Reported loss for the year (37 421) Adjusted loss for the year (36 857) The effects of the adjustment to the statement of equity would be as follows: R`000 Equity as reported (57 501) Adjusted for change in policy (58 839) The difference of R564,000 in the reported loss for the year can be attributed to the lower depreciation charge for the year, and the change in equity as reported is as a result of the nett reversal in accumulated depreciation of R1 337 736. The impact on earnings per share is 0.25 cents, and net asset value per share 0.6 cents per share. With reference to Note 4 to the annual financial statements, the adjustment would result in: Before adjustment: Fair value Acc Depn. Carrying value Plant and equipment reported 43 337 (17 674) 25 663 After adjustment: Cost Acc Depn. Carrying value Plant and equipment adjusted 41 435 (17 110) 24 325 This information has not been audited and has been derived by management for the benefit of shareholders. Pretoria 23 June 2011 Sponsor: Bridge Capital Advisors (Pty) Limited Date: 23/06/2011 17:30:04 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
