TOTAL CLIENT SERVICES LIMITED - Quarterly Progress Report

Quarterly Progress Report

TOTAL CLIENT SERVICES LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/025018/06)
Share code: TCS ISIN: ZAE000116208
(“TCS” or “the Company”)


QUARTERLY PROGRESS REPORT


Shareholders are referred to the cautionary announcement released on SENS on 22 November 2013, the
subsequent renewal of cautionary announcements, the last of which was dated 17 March 2016 and, in
terms of paragraph 1.10(c) of the JSE Listings Requirements relating to the continuing obligations of
suspended companies, are provided with a quarterly progress report on the current state of affairs of the
Company.

The Company continues to pursue various internal and external opportunities and initiatives in line with
the restructuring and rebuilding phase. These initiatives include the reduction of costs, the exit from
unsustainable contracts and the pursuit of new profitable contracts.

The finalisation and release of all outstanding financial statements remain an important area of focus for
the Company. Prior expected finalisation deadlines, as referred to in previous progress reports, have not
been met by TCS. The Company is engaged in a financial re-structuring process, elements of which are of
importance to the auditors for their technical review and ultimate approval of past and future financial
statements. Only once the financial re-structuring elements are approved and in place, will the auditors be
in a position to finalise the outstanding financial statements. The conclusion of this process, which was
initially expected by January 2016, has been delayed due to certain unresolved elements of the due
diligence process. Although all efforts are being applied to have this matter resolved, successful
conclusion thereof is only expected towards the end of April 2016. This has had an impact on the
completion date previously communicated and the revised timetable is set out below.

Once the 2014 financial statements are signed off and released on SENS, work can commence on the
audit for 2015 and 2016. Depending on the date of sign-off of the 2014 financial statements, it is possible
that the entire audit process could be completed by the end of April 2016 and the outstanding financial
statements released in June 2016.

The overdue financial matters and statements includes the completion and release of the pro forma
announcement in respect of the specific issue of shares as part of the Business Rescue, the 2014 annual
report, the August 2014 interim results, the February 2015 year-end results and the 2015 annual report, the
August 2015 interim results and the February 2016 year-end results. All these reports are delayed by the
completion of the outstanding 2014 financial statements. Once this is completed, the outstanding 2015 and
2016 financial matters can be actioned and completed at the earliest possible opportunity. Considering the
delay and the prerequisite activities, the board of directors of TCS expects completion and full compliance
to be in place by the end of August 2016, which is one month later than previously reported.

Operational update
The implementation of the contracts in Polokwane (awarded at end of 2014), Thlokwe (start date 1 May
2015) and Buffalo City (awarded in September 2015) are largely completed and the focus still remains on
increasing volume production.

Due to production and import restraints, the delivery of all equipment to the Namibian Police in terms of the
sale transaction for mobile and fixed cameras concluded in November 2015, was delayed. The completion
and full implementation of this project is now scheduled for the end of March 2016.

The Company continues with the introduction and marketing campaign of the new equipment and
technology to the market in general and is positive that the new camera will be well supported.

Centurion
31 March 2016

Designated Adviser
Merchantec Capital

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