1. What you don’t know can hurt you

2. Impact of a Bad Debt (write off) Bad Debt (write off) = R100m Average margin = 4% New business required = R2,500m Average borrowing per client = R10,000 it will require 250,000 new clients

3. Fraud in the Credit Industry – trends and tips for 2015 Quotes from BankersLab Inc “The consumer credit industry in South Africa is growing by approximately 20%+ annually. However, it is also estimated that the fraud associated with credit granting is increasing by a staggering 15% year-on-year” “In a country where the official unemployment rate is 25%+ and under-employment is closer to 50%, the attractiveness of committing fraud is significant and so no one company is immune to this threat”

4. Trends for 2015 Quote from the Association of Certified Fraud Examiners (ACFE) “Technology will give fraudsters an edge in 2015, but it will also provide new tools for organizations and investigators” Digital transactions will dominate, increasing the fraud risk Bank/Credit card security features will be greatly enhanced. Technology will increase the sophistication of fraud schemes. But technology (like data analytics) will also help catch tomorrow’s frauds.

5. Tips for 2015 KYC - Know your client KYCC - Know your clients customers KYE - Know your employees KIIS - Keep improving information security KPW - Keep protecting “whistleblowers”

6. Tips for 2015 (continued) Quote by PWC “The percentage of fraud detected through suspicious transaction reporting and data analytics increased by over one third, from 18% to 25%” Make use of data analytics such as A@L’s Transactional Analysis & Validation (TAV)

7. About Accountants @Law Accountants @Law (A@L) is Africa's leading independent, niche forensic accountants and litigation support specialists. It has been in operation for 15 years A@L has helped in the recovery or the saving of hundreds of millions of rands for its clients A@L utilises a range of independent professional consultants and state of the art forensic software

8. How do we achieve our goals? Understanding the clients business Professional scepticism Question representations Obtain independent corroborative evidence Experience and Knowledge – over 100 years Skill - Forensic accounting & investigation Independence – No need to defend an opinion Maximising Recoveries – Proven track record Use of cutting edge IT solutions by collaboration with International partners (Risk Factor Solutions, Validis, NetMap and TAV

9. The Management Team Allan Greyling – CEO of A@L Allan Greyling has been in the accounting profession and financial services industry over 37 years He is one of the country’s leading independent forensic accounting experts. He was the co-founder of the KPMG Forensic Practice. His investigations have included LeisureNet, Tollgate, Macmed, Namibian Mineral Corp, Meridian Banking Group which operated in 20 international jurisdictions and the Tannenbaum saga. Greyling has investigated, inter alia, several bank failures in many African jurisdictions. These, in many instances were the results of poor lending, credit granting and management policies

10. Nick Hough - ARRM Nick Hough has over 50 years experience in corporate and international banking, local & overseas trade finance, factoring and invoice discounting He has held senior positions in these industries - in most instances as a director and shareholder Hough was one of the founders of Merchant Commercial Finance, which is now a leading South African invoice finance company Several of the companies in which he was involved are today major players in the trade and debtor finance industry in South Africa The Management Team

11. CONTACT US Nick Hough Tel: +27 (11) 788 1138 Tel: +27 (21) 424 2714 Cell: +27 (83) 459 9962 Email: arrm.a@l.co.zaarrm.a@l.co.za Web: www.accountantsatlaw.co.zawww.accountantsatlaw.co.za Physical Address: JohannesburgCape Town Unit 22, Villa Toscana4th floor 25 Melville RoadHout Street Studios Hyde Park Ext 237 Hout Street SandtonCape Town Republic of South Africa