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


In terms of paragraph 1.10(c) of the JSE Listings Requirements, relating to the continuing obligations of
suspended companies, shareholders are provided with a quarterly progress report on the current state of
affairs of the Company.

The completion and release of all outstanding financial statements remain an important area of focus for
the Company. Prior expected completion deadlines, as referred to in previous progress reports, have not
been met by TCS. The Company is engaged in a financial re-structuring process and elements of this
process are of importance to the auditors, their technical reviews and their 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 proceed. The conclusion of this process, which was initially expected by
January 2016, has been delayed due to certain unresolved elements in respect of the due diligence
process.

However, some progress has been made since the previous quarterly progress report, and the Company
is now in a position to schedule certain activities in order to complete the outstanding matters. Although
some aspects remain uncertain and beyond the Company’s control, the timetable below has been
adjusted to reflect the expected completion process.

Once the 2014 financial statements have been signed-off and released on SENS, work can commence on
the audits for the 2015 and 2016 financial year. The audit is expected to commence in January 2017 and
be completed by the end of March 2017, followed by the release of the results on SENS.

The remaining overdue financial matters and statements include 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, the February 2016 year-end results, the August 2016 interim results, and the 2016 annual report.
All these reports have been delayed by the completion of the outstanding 2014 financial statements.
Considering the delay and the prerequisite activities, the board of directors of TCS is positive that
completion and full compliance can be attained by the end of June 2017 at the latest.

Operational update
The operational focus remains on improving performance and increasing volume production on the primary
full-service contracts in Polokwane, Tlokwe and Buffalo City. The Company completed the upgrade and
enhancement of its Traffic Management Software which will be made available to all current clients and the
general market.

The Company reached an in-principle agreement with the Namibian partners and the Namibian Police to
actively pursue co-operating opportunities in 2017.

The Company continues to pursue all opportunities to market and sell camera equipment and technology,
as well as the new management systems.


Centurion
30 December 2016

Designated Adviser
Merchantec Capital

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