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• Report of the Independent Auditors
• Company Secretary Certificate
• Directors' report
• Income Statements
• Balance Sheets
• Statements of Changes in Equity
• Cash Flow Statements
• Accounting Policies
• Notes to the Annual Financial Statements
• Subsidiary and Other Information – Annexure A

REPORT OF THE INDEPENDENT AUDITORS

To the members of KAP International Holdings Limited 

We have audited the annual financial statements and group annual financial statements of KAP International Holdings Ltd for the year ended 31 December 2005. These financial statements are the responsibility of the company's directors. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements fairly present, in all material respects, the financial position of the company and group at 31 December 2005 and the results of their operations and cash flows for the year then ended in accordance with International Financial Reporting Standards, and in the manner required by the Companies Act of South Africa.

Deloitte & Touche
Registered Accountants and Auditors
Chartered Accountants (SA)
10 March 2006
Cape Town