01

ContentsRepoRt pRofile - Scope and BoundaRieS of the integRated RepoRt

oRganizational oveRview OPERATINGSUBSIDIARYPROFILES

RepublicComputerServices(Pty) Ltd KASMARTManagementConsultants(Pty) Ltd

Rgt SmaRt BuSineSS model

StRuctuRe & goveRnance BOARDOFDIRECTORS Group RepublicComputerServices(Pty) Ltd KASMARTManagementConsultants(Pty) Ltd EXECUTIVECOMMITTEE AUDITCOMMITTEE REMUNERATIONCOMMITTEE

gReen agenda

StRategic oBjectiveS

financial peRfoRmance

miSSion, viSion and valueS

chaiRman’S Statement

ceo’S Review

coRpoRate goveRnance RepoRt

declaRation By company SecRetaRy

audit committee RepoRt

financial StatementS: IndependentAuditorsReport Directors’ Responsibi l i t ies&Approval Directors’ Report ConsolidatedBalanceSheet ConsolidatedIncomeStatement ConsolidatedStatementofChangesinEquity ConsolidatedCashFlowStatement AccountingPolicies NotestotheGroupAnnualFinancial Statements

ShaReholdeRS’ diaRy

ShaReholdeR analySiS

notice of agm

foRm of pRoxy

adminiStRation

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RePoRt PRoFILe

Recognisingthatreputationalissuesandtheimpactofcompanyontheenvironmentarematerialissuesthatcanaffectthevery

existenceofthecompanyKingIIIcallsfororganisationstopublish“aholisticandintegratedrepresentationofthecompany’s

performanceintermsofbothitsfinanceanditssustainability”asanintegratedreport.WiththeincorporationofKingIIIinto

theJohannesburgStockExchange(JSE)ListingsRequirements,listedcompaniesarerequiredtoissueanintegratedreportfor

financialyearsstartingonorafter1March2010.

Theoverallobjectiveofanintegratedreportistoimprovestakeholders’abilitytoassesstheabilityofaninvestment(company)

tocreateandsustainvalueovertheshort,mediumandlong-term.

RGTSMARTMarket IntelligenceLimited fullysupportsand iscommittedtopromotinggoodcorporategovernanceandhas

implementedtherecommendationscontainedin“KingII”and“KingIII”.

This report covers the operations of RGT SMARTMarket Intelligence Limited and its two operating subsidiaries Republic

ComputerServices(Pty)LtdandKASMARTManagementConsultants(Pty)LtdfortheFinancialReportingPeriod1stMarch

2010to28thFebruary2011.

As recommended the report encompasses an organisational overview including a profile of the operating subsidiaries, the

businessmodelaswellasthegovernancestructure.Strategicobjectives,thefinancialperformanceandfutureperformance

objectivesarealsocovered. Where relevantcertain significantdevelopments that tookplaceafter the reportingperiodare

elaboratedupon.

04 Annual Report 2011

oRGAnIsAtIonAL oVeRVIeW

oPeRAtInG subsIdIARy PRoFILesRGTSMARTMarketIntelligenceLimited(RGTS)isaninvestmentholdingcompanythatcurrentlyoperatestwowhollyowned

subsidiaries,RepublicComputerServices(Pty)Ltd(TradingasResponseGroupTrendlineorRGT)andKASMARTManagement

Consultants(Pty)Ltd(KASMART).RGTSalsohasasignificantstake(33%)inanewventure,CarStats(Pty)Ltd.

RGT (inassociationwithNAAMSA) is thesolesourceofnewvehiclessalesdata to theSAmotor industryandhasbeen in

thisroleforover25years.InadditionRGTprovidearangeofanalyticalproductswhichthemotorindustryusesinplanning,

forecastingandmarketing.

Sistercompany,KASMARTprovideshighvalueconsultingsupportandservicequalitymanagementandmonitoringsystems.

CarStats specialises in data validation, vehicle valuations and portfolio risk management services for motor and related

industries.

Profile of rePublic comPuter ServiceS (Pty) ltd (rGt)

In the 1970s, theNational Association of AutomobileManufacturers of SouthAfrica (NAAMSA) began producing and

disseminatingautomotivestatistics. Informationwassuppliedbymotormanufacturersandthedataprogrammed into

reportswhichweredistributed tomotormanufacturersandother interestedparties. Thesystemwasmaintainedata

computerbureau,untilRGTofferedasuperioron-lineenquiryversion.RGTqualitycontrol,supplementandenhancethe

dataandprovidealayerofon-linequeryandadvancedanalyticaltoolsthatallowanalyststofullyunderstandthemarkets

inwhichtheyoperate.

The Essence of RGT• SolesourceofandsupplierofnewvehiclessalesdatatotheSAmotorindustry,inassociationwithNAAMSA,for

over25years.

• Ownsadynamicandsteadilygrowingdatabaseofnewvehiclemodelssoldbymanufacturer,dealerandtownand

licensingdistrictinSAbymonthfrom1980onwards.

• NAAMSAapprovedsupplierofnewvehiclespecificationandpricingdata.Themajorityofservicesofferingaccess

toSouthAfricannewvehiclespecificationsandpricinginformationobtainthisdatafromRGT.

• Sinceinception,andincloseassociationwiththemotormanufacturersandimportersinSA,hasdevelopedasuite

ofanalyticalsystemswhichareusedonadailybasisbymanufacturersandimporters,andtheirdealerorganisations

throughoutSA.

• Systemshaverelevanceandapplicationopportunitiesinotherindustrialsectorsandininternationalmarkets.

• Revenueisbasedprimarilyonregularmonthlyannuityincomefrombluechipcustomers.

• Hasnodirectcompetitorsandisprotectedbysignificantbarrierstoentryforanyprospectivecompetitor.

• IstrustedandrespectedbytheSouthAfricanmotorindustry.

100.0% 100.0% 33.3%

RGTSMARTMarketIntelligence Limited

KASMARTManagementConsultants

CarStatsAuto Analytics

ResponseGroupTrendline (RGT)

05

Profile of KA SmArt mAnAGement conSultAntS (Pty) ltd

KA SMART is a specialist market research company, providing high value market intelligence, market research and

consultingservices.Whilethecompanyoperatesacrossallindustries,management’sexperiencebaseandtrackrecord

hastendedtofocusthebusinessontheSouthAfricanmotorindustry.

KA SMART specialises in customer satisfaction and service quality systems (SQS) for a number of clients. After a

developmentandtestingphasein2005,KASMARTlaunchedaSQSprogramthathasbeenspectacularlysuccessful.The

systeminvolvestheintegrationofSMS,Email,InternetandCall-Centretechnologyandhasasignificantsubscriberbase.

OtherKASMARTprojects involvemarketevaluationsfornewandexistingproducts,withastrongfocusonthemotor

industry,providingadvancedanalysisandinterpretationtoassistclientsinmakingcriticalstrategicdecisions.

Profile of cArStAtS (Pty) ltd

RGTSalongwithLightstone,LightstoneInnovation,SignioandConcludeformedCarStats(Pty)Ltdtodeveloparangeof

data-drivenproductsandservicesfortheSouthAfricanautomotiveindustry,includingastatisticallyrobustvehiclevaluation

andriskmanagementplatform.CarStatsdidnottradeintheperiodunderreviewandwillonlyrequirecapitalisationin2011

andsoisnotincludedinthefinancialreportingoftheGroup.CarStatsintendsbecomingaleadingproviderofmarketing

and riskmanagementdata toMotorManufacturers and Importers,DealerGroupsandDealers, Insurancecompanies,

Banks,FinanceCompaniesandConsumers.

RGTS’fourpartnersrespectivelycontributeuniquevaluetothenewcompanyandarewell-positionedtohavethenew

companyassumeamarketleadershipposition:

• Lightstone;TrustedproviderofvaluationandriskmanagementservicestoallofSA’smortgagelenders(includingIT

accreditation)

• Signio;Processapproximately65%ofthemotorvehicleindustry’sfinanceapplicationswithsoftwareinstalledand

liveat1600dealers.

• Conclude;DevelopmentSkillsrelatingtoforms,datastorageandextraction.

• LightstoneInnovation;ProvenproductdevelopmentcapabilitiescoupleswithstronganalyticandGIScapabilities.

RGTShavea33%stakeinthenewcompany.

06 Annual Report 2011

the RGt sMARt busIness ModeLTheRGTSBusinessModelisfocusedonenablingourclientstomakebetterbusinessdecisions.BetterBusinessDecisions

aremadebasedonaccurateandreliablebusinessintelligence.RGTSbelievethatthisinvolvesmuchmorethanBusinesses

Intelligence(BI)–theRGTSbusinessmodelappliesineveryaspectofthebusinessfromDatasourcingthroughtoDecision

making.RGTShavedefinedthevaluechainasfollows:

• Datawithoutvalidation is just that–data; throughqualityassuranceandvalidationdatabecomes informationand

beginstohavevalue.

• Intelligencewithoutcontextisjustinformation;RGTSapplyarangeofenablersthroughanalyticaltools,reportsand

dashboardswhichaddcontexttotheinformation.

• Analysisandknowledge-basedadvancedanalyticsisthenappliedtotheIntelligence.

• Industryandmarket-specificKnowledgeisthenappliedandDecisionsareenabled.

Themodelcanbeapplied ineveryfacetof industry; inevery industry. TheuniqueRGTSBusinessIntelligenceEngine

coupledwithanexperienced,enthusiasticandcommittedconsultingteamprovidesRGTSClientswithHi-Performance

DecisionSupport.StrategicallyRGTSintendfocusingallfuturedevelopment,newproductinitiativesandanyprospective

acquisitionsonbusinessandbusinessesthatfitthismodel.

07

stRuCtuRe & GoVeRnAnCeWhile structurally there are currently four organisations in the group; RGT SMARTMarket Intelligence Limited (the holding

company),twowhollyownedsubsidiaries(RGTandKASMART)andaninvestmentsubsidiary(CarStats)tomaximizesynergies

day-to-dayoperationsarerunbyanExecutiveCommittee(EXCO)fully immersedintheoperationsofthetwowholly-owned

operatingsubsidiaries.AcomprehensiveCEOandEXCOTermsofReferencehasbeenapprovedbytheBoardandmembers

oftheAuditCommittee.

EachoperatingcompanyhasaseparateBoardofDirectors responsible forcomplianceandfiduciarymattersand theRGT

SMARTExecutiveDirectors,PaulDeVantier,CliffReedandDr.NealBrutonarebolsteredbyaparticularly stronggroupof

independentnon-executivedirectors;AlfredDaCosta,CumeshMoodliar,TrevorHayterandBrandPretoriusinmanagingand

steeringthegroup.

TheGroupBoardissupportedbyanIndependentAuditCommittee,IndependentRemunerationCommitteeandaTransformation

Committee.

08 Annual Report 2011

Alfred Anthony dA coStA (46) BCom (Hons)Independent, Non-Executive Chairman

Alfredhasbroadexperience in thecommercialarena,andstrongcommunityandeducationalaffiliations. His career began as chief business advisor for the Small BusinessDevelopmentCorporation (SBDC). He has served as a boardmember for the Centre for Investment andMarketing in the EasternCape (CIMEC). For a periodAlfred served as theCEOof the PortElizabethRegionalChamberofCommerceandIndustry(PERCCI).AlfrediscurrentlytheCEOofUkuvulaInvestmentHoldings(Pty)Ltd,anon-executivedirectoratBidvestGroupLimitedandofIQUADGroupLimited.HeisalsoacouncilmemberattheUniversityofSouthAfrica(UNISA)andforaperiodwasthePresidentofPERCCI.

Alfred,anindependentnon-executive,wasappointedasChairmantotheboardofRGTSMARTon12June2008.

PAul bernArd de vAntier (52)Chief Executive Officer

PaulhasbeeninvolvedintheMarketResearchandMarketingConsultingbusinessfor25years.Throughamanagementbuy-out,Paulandtwopartnerssetupaspecialistmarketresearchandbusiness intelligence consulting partnership in 1990. Over time, Paul’s experience base andexpertisefocusedincreasinglyontheMotorIndustry–specialisinginfeasibilitystudies,productdevelopment, brand building and service quality processes. Positive outcomes with manyprojectswithbluechipclientshaveresulted in longstandingrelationships. Founded in2004,KASMART, awholly-owned subsidiary of RGTSMARTwas the logical culmination of Paul’sexperienceandknowledge.

PaulwasappointedasanexecutivedirectortotheboardofRGTSMARTon12June2008.

clifford WAlter reed (52) CA(sA), mComm(tAxAtion)Financial Director

Cliff has followed a successful career as an accountant for the past 30 years. He hasbeeninvolvedincommerceandindustry inadditiontobeingaregisteredaccountantandauditor inpublicpractice. AswellasbeingaCharteredAccountant,healsoholdsaMastersDegree inTaxation.CliffbeganhiscareeratSpencerStewartCharteredAccountants.HelaterjoinedAngloAmericanGoldDivisionintheFreeStateasManagerofFinanceandAdministration.HereturnedtoPortElizabethwherehejoinedBel-EssexCorporationandprogressedtothepositionofGroupFinancialDirector.In1995hestartedFrancisReed&Co,CharteredAccountants(SA).

CliffwasappointedasanexecutivedirectortotheboardofRGTSMARTon12June2008.

dr neAl StAnley bruton (54) DComm EConomiCsDirector: Corporate Strategy

NealwasastudentattheUniversityofPortElizabeth(UPE)wherehereceivedaBCommdegreein1981,aBCommHonoursdegree in1982,andaMCommdegree,CumLaude,majoring ineconomics, in 1986.Neal subsequently completed hisDCommatUPE. Neal’s career in themotor industry spanned seventeen years with Volkswagen of South Africa. In 1995 he wasappointedasanalternatedirectorofVolkswagenFinance(Pty)Ltd.Nealhasvastinternationalmotor industry experiencehaving lived andworked inWolfsburg,Germany,Detroit,USAandMiltonKeynes,UnitedKingdom.TodayNealisrecognisedasSouthAfrica’spre-eminentMotorIndustryeconomist.

NealwasappointedasanexecutivedirectortotheboardofRGTSMARTon12June2008.

boARd oF dIReCtoRsGRouP

09

cumeShAn JAyASeelAn moodliAr (42) BA LLB AnD LLm (tAx)Independent, Non-Executive Director

CumeshstartedasacandidateattorneyatGoldberg&DeVilliersIncin1994.In2006hewasappointeddirectorandin2003wasappointedManagingDirector,thepositionheholdstodate.Goldberg&DeVilliersInc.isanestablishedLegalPracticewhichwasformedinPortElizabethin1933.Thefirmcomprisesaprofessionalcomponentof15lawyersandapproximately40supportstaff.ThefirmhassignificantexpertiseintheareasofCorporateLaw,CommercialLaw,PropertyLaw,LocalGovernmentLaw,InsuranceLaw,LitigationandCreditRecoveries.

Cumesh’s personal areas of specialisation are in corporate and commercial law, commercialagreements,commercial litigation, insurance lawandlocalgovernment law. HehasservedasaLecturerattheSchoolforLegalPractice,NMMU,inpersonalinjurylitigationandcommercialLawandhasbeenrequestedbytheCapeLawSocietytoassistindisciplinarymattersinvolvingattorneys.

Cumeshwas appointed as a non-executive director to the board of RGTSMART on 05May2010.

brAnd PretoriuS (62) mCommIndependent, Non-Executive Director

BrandhasplayedaprimaryroleinthemotoringindustrysincehestartedworkingforToyotaSouthAfricain1973.

Followinganumberofmanagementpositionsinresearch,planning,salesandmarketing,hewasappointedmanagingdirectorofToyotaSAMarketingin1988.UnderhisguidanceToyotabecamethemarketleaderintermsofbothsalesandcustomersatisfaction.

InMarch 1995 he joined South Africa’s largestmotor retail group,McCarthyMotorHoldings,aschiefexecutive.EffectiveOctober1999,hewaspromotedtothepositionofChiefExecutiveOfficer ofMcCarthy Limited, the holding company ofMcCarthyMotor Holdings. It is widelyacknowledgedthatBrandplayedthepivotalroleinthesuccesofMcCarthy.

InadditiontoRGTSMARTBrandcurrentlyservesasanon-executivedirectorontheboardsoftheABSAGroup,ABSABankLimited,ReunertLimited,andEliance.HewasrecentlyappointedtotheadvisoryboardoftheAfrikaanseHandelsinstituut.

AnhonoraryprofessorshipinBusinessManagementwasconferredonhiminMay1991bytheUniversityoftheFreeStateandinMay2001,bytheUniversityofJohannesburg,aswell.HewasappointedaFellowattheGordonInstituteofBusinessScienceinNovember2007.BrandisamemberofthemainboardoftheNationalBusinessInitiative,theREADEducationalTrustBoardofTrustees,theadvisoryboardoftheUniversityofStellenboschBusinessSchoolandistheimmediatepastpresidentoftheSouthAfricanRetailMotorIndustryOrganisation.HewasappointedasanambassadoroftheSAValuedCitizensInitiativeinMay2008andinNovember2009asaVisitingExecutiveattheCentreforResponsibleLeadershipattheUniversityofPretoria.

BrandisafirmbelieverinbusinessethicsandstrategicbusinessgrowthandwillhaveastrongstrategicinfluenceonthefutureofRGTSmartanditssubsidiarycompanies.

10

RePubLIC CoMPuteR seRVICes (RGt) InadditiontoPaulDeVantier(ManagingDirector),CliffReed(FinancialDirector)andNealBrutonthefollowingaretheExecutive

DirectorsoftheBoardofRGT:

Gert JohAnneS GrundlinGh (58)Director: Systems Development & Programming – RGT Operational Board

AftercompletingvariousIBMandUnisysstudiesGertwaspromotedtoProgrammerandSystemsAnalystProgrammer

attheSAWoolBoard.AfteraperiodwithICLComputerBureauGerttookupapositionatGeneralMotorsSAwherehe

wasresponsibleforimplementinganMRPsystemandsubsequentlysupportingallimplementedITsystems.Asdirector

ofSystemsDevelopmentandProgramming,Gertisresponsibleforthedesign,development,hostingandsupportingof

alltheRGTsystemsandinparticulartheNAAMSAandSAAMAStatisticalSystems.

Gertplaysa leading role in theNAAMSAStatisticalCommittee. Underhis leadershipandguidance theAUTOSTATS

systemhasbecometheprimarystatisticalanalyticaltoolintheautomotiveindustry.

heinrich coetzee (45)Marketing and Training Director – RGT Operational Board

HeinrichjoinedtheSouthAfricanAirForcein1986asaseniorfacilitatorfortheSouthAfricanAirForceSchoolofLogistics

Training. Hehasdevelopedandpresentedvarious trainingandmanagementcoursesand is today renowned forhis

knowledgeonthevehiclestatisticalanalysisindustry.In2001hejoinedRGTastheTrainingandMarketingManagerand

istodayaDirectorontheRGTOperationalBoard.

HeincurrentlyheadsupanRGTSMARTinitiativetoestablishandgrowtheRGTTrainingAcademyakeyaspectofRGT

SMART’sdevelopmentplanning.

KA sMARt MAnAGeMent ConsuLtAnts (KA sMARt)InadditiontoPaulDeVantier(ManagingDirector)andCliffReed(FinancialDirector)thefollowingaretheExecutiveDirectorsof

BoardDirectorsofKASMART:

Anthony WilliAm cAlcutt (38)Operations Director – KA SMART Operational Board

Afterstudyingengineeringandworkingforaconstructioncompanyasaquantitysurveyor,Anthonycompletedfurther

studiesinComputerSciencetostartacareerasasoftwareprogrammer.Anthonysubsequentlyfoundapositioncompiling

andanalysingusedvehiclevaluesforMead&McGrouther.AnthonylaterbecameakeyteammemberwithanInternational

VehicleLeasingcompanyassessingriskandformulatingmaintenanceratesandresidualvaluesforvehiclesinoperationin

SouthAfrica.In2004hejoinedKASMARTasadataanalyst,progressingtopartneranddirector.

TodayAnthonyheadsupAnalysis,ReportingandSpecialProjectsfortheGroup.

JuStin SWAnePoel (38)Client Service Director – KA SMART Operational Board

Justin has been in the Market Research industry for 12 years and specialises in customer service research. After

completinghisMarketingDiplomaat theNelsonMandelaMetropolitanUniversity (NMMU) in1994,Justinspent three

yearsinnationalsales.From1997–2003Justinjoinedaninternationalfullservicemarketresearchcompanyasasenior

marketingmanagerandwasbasedintheirPortElizabeth,UnitedKingdomandCapeTownoffices.Justinhasworkedwith

someoftheworld’slargestcompaniesandindustriesthroughoutSouthAfrica,Africa,theUnitedKingdomandEurope

developinguniquemethodologiestomeasureandincreasebrandawarenessandcustomerservicelevels.Justinjoined

KASMARTin2005.

Today Justin is a director on theOperational Board of KA SMART and is responsible for Client Service and Project

Managementatalllevels.

11

AlAynne de vAntier (50)Director: Financial Control– KA SMART Operational Board

Alaynnestartedheraccountingcareerwithmajorinternationalcreditcardcompanyandsincethenhasheldanumberof

senioraccountingpositionsrangingfromimportanddistributionofindustrialmachinery,miningengineeringandmulti-group

listedoperations.SinceKASMART’sinceptionshehasbeeninstrumentalinstructuringandcontrollingthecompany’s

financesandensuringcomplianceandgoodgovernance.

TodayAlaynneisadirectorontheOperationalBoardofKASMARTandisresponsibleforhighlevelfinancialreporting,

financialperformanceanalysisandmanagementofthegroup’sconsolidatedaccounts.

RGt sMARt exeCutIVe CoMMItteeDaytodayOperationsofthegroupareunderthemanagementofanExecutiveCommittee.ThiscommitteeconsistsofPaulDe

Vantier,CliffReed,NealBruton,GraemeReid,GertGrundlingh,MarkGroch,AlaynneDeVantierandEvertonBowers.

GrAeme reid (57)CHIEF OPERATING OFFICER RGT SMART

Graemeisaresultsdrivenleaderandmanager.Inadditiontosignificantseniorgeneralmanagementexperiencecovering

industriesasdiverseasretail,entertainmentandleisureandmotorhehasverystrongHumanResourcesandCoaching

experience.DuringmostofhiscorporatecareerGraemehasoperatedasa“changeagent“andhasapersonalpassion

towarddeveloping,assistingandguidingindividualsandtheirorganisationstowardachievingtheirgoalsandobjectives.

GraemeisanaccreditedActionCOACHandhasvariousqualificationsincludingMDP,DPLR(UNISASBL)andaHenley

ManagementCollegeMBAwhich focusedonthe futureof theRetailMotor Industry. Hisstrongdevelopmental focus,

peoplesensitivemanagementskillscoupledwithanin-depthunderstandingandpassionforthemotorindustrypositions

himideallytomanagetheRGTSteam’sdaytodayactivitiesasthegroupanditsteamcontinuestoevolveasafastgrowing

corporatebusiness.

mArK Groch (31)Chief Information Officer RGT SMART

MarkhasworkedintheUK,EuropeandSouthAfricaintheInformationandDataSolutionenvironment.Fundamentally

thework has been based aroundmarrying business and IT capabilities tomaximizeCRM, intelligence, and strategy.

WhileworkingforAutomotive,Retail,FMCG,Telecoms,andPharmaceuticalclientsMarkhasfocusedonteamdelivery

ofexceptionalclientdataandinformationsystemsthatsuittheneedsandobjectivesofclients.HisresponsibilityatRGT

Smartisthemanagementandstrategyofinformationandtechnologies,whilemaintainingahighlevelofinputintoclient

delivery.

MarkobtainedhisHonoursDegreeinComputerScienceandInformationSystemsandamajorinEconomicsfromUPE

in2000.

12

everton boWerS (40)Manager Systems Development

EvertonBowershasworkedinITsince1993specialisinginsoftwaredevelopmentandITconsulting.Everton,aMicrosoft

CertifiedProfessional,completedhisNationalDiplomaInformationTechnologyatPETechnikon(nowNMMU)in1992.He

beganhisemploymentcareeratBonita,aFMCGcompany,wherehequicklyprogressedtoaseniorsoftwaredeveloper.

DuringhistimeatBonitahewasresponsibleforallsystemsimplementationatvariousdepotsandsubsidiarycompanies

andfurthergainedextensiveexperienceinwarehousing,financeandpayrollsystemsdevelopment.

Evertonmoved out of the systems development arena and took up employment atNMMUwhere hewas involved in

technicalsupportandendusersupport.Evertonreturnedtosystemsdevelopmentwhereforanumberofyearsheworked

inaconsultingroledevelopingsoftwareandimplementingsoftwaresystemsforvariouscompanies,suchasPQAfrica,

DimensionData,M-Web,NaspersandMindport(Hoofddorp,TheNetherlands).

In2002EvertontookupapositionassystemsdeveloperatRGTandcurrentlyholdsthepositionofManagerSystems

Developmentandisresponsibleforoverseeingthecompletesystemsdevelopmentlifecycleofallinternalandcustomer

software.

13

boARd CoMMIttees And WoRKInG GRouPsAltXListingsrequirementsprovidefortheestablishmentofanAuditCommittee;RGTSMARThasgonemuchfurtherwithan

IndependentRemunerationCommittee,IndependentTransformationCommitteeandGreenAgendaTeamasstandingitemson

BoardMeetingagenda.

IndePendent AudIt CoMMItteeDuringtheyearunderreviewthecompositionoftheauditcommitteeconsistedoftwonon-executivemembers,namelyAlfredDa

CostaandJacquesMagliolo(chairman).ArepresentativefromtheDesignatedAdvisorattendedtheauditcommitteemeetingsin

compliancewiththeAltXListingRequirements.KingIIIrecommendsthatthechairmanoftheBoardshouldnotbethechairman

oftheauditcommittee;furthermoreKingIIIadvisesthattheauditcommitteesconsistofatleastthreeindependentnon-executive

directors.Accordingly,Mr.CumeshanMoodliarwasappointedasanindependentnon-executivedirectorwitheffectfrom05May

2010andMrTrevorHayterappointedindependentnon-executivedirectorwitheffectfrom03September2010whichtwonew

directorsalsoservedasmembersontheauditcommittee.Mr.JMaglioloresignedasadirectoron31December2010andMr.

TrevorHayterwasappointedaschairmanoftheauditcommittee.

Theaudit committeemetfive timesduring theyear, andmeetsat least twicea year.Partnersof theexternal auditorare in

attendanceatthemeetings.Themajorityofthemembersoftheauditandriskcommitteearefinanciallyliterate.TheBoardof

DirectorsofRGTSMARThasunrestrictedaccesstothecommittee.

The audit committeemandate provides for the reviewing of financial information, the effectiveness of the internal controls,

assessmentofriskrelatingtothebusinessandindustry,accountingpolicies,thecodeofethics,complianceprocedures,audit

feesandreportingthereontotheBoard.Theauditcommitteehasapproveditsresponsibilitiesintermsofthismandate.The

auditcommitteeisalsoresponsibleforallriskmatters.

IndePendent ReMuneRAtIon CoMMItteeARemunerationCommittee(Remcom)hasbeenestablishedbytheBoardasakeyelementofcorporategovernance.Theterms

ofreferenceforthiscommitteeincludethedeterminationoftheframeworkforremunerationoftheChiefExecutiveOfficer,the

ExecutiveDirectorsandotherseniormembersoftheexecutivemanagementteam.Remcomhavealsobeentaskedtomake

recommendationstotheBoardregardingaremunerationpolicyinkeepingwiththeGroupstrategy,anexecutiveincentivebonus

schemeandproposerulesandtheoperationofapossiblephantom-shareincentivescheme.

Anon-bindingadvisoryvotehasbeen included intheNoticeofAnnualGeneralMeetingwhichvoteenablesshareholdersto

expresstheirviewsontheremunerationpolicy.

Onaregularbasis(atleastonceeverytwoyears)RemComwillreviewbenchmarkcompaniesandappropriatemarketinformation

toensurethatsalariesandbenefitsareinlinewiththemarketandtheremunerationpolicy.

TheRemcomcomprisesTrevorHayter,CumeshMoodliarandAlfredDaCosta–allindependentnon-executivedirectors.

14

tRAnsFoRMAtIon CoMMItteeIn2011theBEEinitiative,currentlycapablymanagedbyAnthonyCalcutt,willbeexpandedtoincludeasupportingadvisory

committeeofkeyemployeestocontributeintheexecutionofBEEandEmploymentEquityplanning.

KASmartisaimingtoreplacetheircurrentLevel2BEEcertificatewithnolessthanaLevel3fortheyearendingFebruary2011.

Steps taken toachieve this include the trainingof ITstaffonMicrosoftCertifiedcourseswhichnotonly improves theskills

requiredfortheirspecificjobfunctionbutwillalsogotowardssupportingthegroupsMicrosoftCertifiedPartnerstatus.Socio-

EconomictargetswillbemetthisyearwiththeawardingofaKASmartMarketingBursarytoaqualifyingpostgraduatefull

timestudentstudyingattheNelsonMandelMetropolitanUniversity(NMMU).ThishasbeensetupwiththehelpoftheNMMU

FinancialAidOfficerandhasbeenawarded.

RGTaresimilarlyaimingtoimprovetheircurrentLevel8BEEcertificatetoaLevel4throughvariousinternalSkillsDevelopment

initiativesaswellasbyusingsuppliersthatareBEEcertified.TheSocio-Economictargetwillbeachievedbyhavingselected

Oosterlandasabeneficiarywhoarereceivingafixedmonthlyfinancialdonation.OosterlandYouthCentresituatedinDespatch

since1980,accommodates120childrenplacedintheircarebytheChildren’sCourt.Thesearechildrenwhoareinneedofcare

andincludethosethataredestitute,orphaned,abused,orneglected.

ThecurrentRGTSmart’sLevel4BEEcertificatewillimproveafterfinalconsolidationandassessment.

OntheEmploymentEquityfronttheCompanypromotesaculturethatprovidesallemployeeswithopportunitiestoadvance

totheiroptimallevelsofcareerdevelopment.TheCompanyencouragesparticipationintheownershipofRGTSMARTbyits

employeesthroughtheplacingofsharesofthepublicofferwithstaff.

RGTSupholdsandsupports theobjectivesof theEmploymentEquityActand intends implementingvarious initiatives that

provideopportunitiesforalllevelsofstaffwithinitsvariousdevelopmentsastheybecomeestablishedandwillseektoposition

itselfasanemployerofchoice,whilstatthesametimeenhancingitsparticipationinmakingSouthAfricamoreinternationally

competitive.Employmentpoliciesaredesignedtoprovideequalopportunities,withoutdiscrimination,toallemployees.

GReen AGendATheBoardhasaGreenAgendaasastandardagendaitematitsBoardmeetingsandpursuanttoapresentationonitsGreen

Agenda, theboardhasassigned responsibility tooversee thesechangesand the implementationof thegreenpolicy toan

individualwithineachoperatingsubsidiary. These individualswillsetperformancetargetsonsustainability in linewithRGT

SMART’sgreenpolicy.

Beingafocusingondatamanagementandenhancement,RGTSrecognisesthatitsdirectenvironmentalimpactsareassociated

primarilywiththeoperationoftheofficeandITinfrastructure.Systemsaimedatreducingresourceconsumptionovertimeare

inplaceandtheCompanyiscontinuouslyexploringwaysinwhichtoreducepaper,energyandwaterusage.RGTSwillbe

implementingthejourneytowards“CarbonNeutral”certificationduring2011.

It GoVeRnAnCeTheRGTSmartbusinessmodelisheavilydependentonInformationTechnology.Thisindustryspaceisaconstantlychanging

environmentandRGTSmart realises the importanceof focusingonstayingabreastof thisdynamicandchallengingsector.

RGTSmarthasbegunensuringthatITgovernanceisfrontofmindandthereforealigningITinvestmentswiththecorebusiness

direction.Bycontinuallychallengingandunderstandingthedirectionofthebusiness;theshapeandinvestmentofITisassured

tobecomplementary.AsRGTSmartstartstodeveloptheITgovernanceapproach,soitwillenablethebusinesstodelivermore

effectivelyandefficientlywiththemarketsandclientsrequirements.

15

stRAteGIC objeCtIVesInJanuary2011RGTSheldthefirstofwhatwillbecomeanannualdiscipline–astrategicplanningandstrategyreviewsession.

Theentireboardandselectedseniormembersofthemanagementteamparticipated.Primaryobjectiveswereidentifiedina

numberofkeyareas:

Financial:Thefocuswillbeonsustainablegrowthandbecausethiswillrequirere-investmentinthemediumterm,conservative,

measured and reasonable levels of profitability are expected. In 2011 RGTSwill develop incentives linked to growth and

identifiedKPI’sforallemployeesandexploretheintroductionofperformanceincentivesforseniorstaff.Securinganinvestor

ofreferencetoacquireasignificantstakeinthebusiness,therebyraisingadditionalworkingcapitalwasconsideredapriority.

Marketing:RGTSwill focusasmuchonPublicRelationsas InvestorRelations in2011. Thecompanyprofilewillberaised

significantly.Anumberofimportantinitiativesareplanned:RGTSMARTwillhaveasignificantpresenceattheJohannesburg

InternationalMotorShow2011,asocialmedialaunch,quarterlynewsletterandDr.NealBrutonwillbehostingaregularbriefing

withkeymediaandindustryleaders.TheRGTcompanylogohasbeenredesignedandindividualbrandingforallproductsand

servicesinlinewithcorporatebrandingwillbeimplemented.

StaffDevelopmentandSuccessionPlanning:Toensurecontinuityandstabilitystaffandmanagersinallcriticalpositionswill

havestructuredbackupandsupport.Inordertoproperlyresourcesustainedgrowthinalloftheoperationalareasanumberof

keyvacancieshavebeenidentifiedforrecruitment,inadditionlongerrangedevelopmentplanningforseniorexecutivepositions

willfocusonensuringcontinuity.2011willalsoseeformalgradingandbenchmarkingofallpositionsandstaffremunerationand

development,includingtrainingwillbeinformedbythisprocess.

OrganisationalStructure:In2011RGTandKASMARTwillberestructuredasoneoperationalunit.Thiswillenabletheteamto

maximizesynergiesandfullyintegratethedifferentcompanycultures.Co-locationinonebuildingisakeyobjective.Individual

profitandcostcentersfocusedonkeyaspectsofthebusinesswillbeestablishedtoempowerandincentivisemanagers.

Environmental:RGTSwilltakealeadershippositioninenvironmentalawarenessandaction.Beginningwithformal“carbon

neutral”certificationin2011arangeofappropriatelyprofiledinitiativeswillbeparticipatedin.

RGTSMART

Marketing & Sales

Back Office Support

Finance & Admin

Information Solutions Infrastructure

Information Solutions Development

NAAMSA & SAAMA

Service Quality Systems

Analysis & Research

RGT Training Academy

16

FInAnCIAL PeRFoRMAnCe hIGhLIGhtsFinancialresultsarepresentedfullywithinthisAnnualReportbuthighlightsfortheperiodMarch2010toFebruary2011,RGTS’s

firstyearinthelistedenvironmentareasfollows:

Overview:

• Revenueisupby8.3%

• Totalcostsareupby5.2%

• Headlineearningsupby33.4%andHEPSupby19.2%

• Proceedsfromlistingweremainlyusedtorepayborrowingsandsettlelistingcosts.Thegroupreflectedapositivecash

flowofR1.47mintheperiodunderreview.

Feb2011 Feb2010

Revenue 27703937 25583662 8.3%

OtherIncome 117953 3404 3365.1%

Totalcosts 23066083 21928440 5.2%

ProfitBeforeTax 4755807 3658626 30.0%

ProfitafterTax 3306466 941530 251.2%

HeadlineEarnings 3275476 2455733 33.4%

HeadlineEarningsperShare(HEPS) 0.8287 0.6950 19.2%

17

18

viSionTobeacknowledgedworld-wideas the leadingauthorityprovidingactionable

business intelligence, decision support and associated value-added services

coveringallaspectsofindustry.

miSSionProvidinganever-expandingrangeofproductandservicestailoredtotheneeds

ofourclients,expandingourspreadandreachacrossallaspectsofindustryby

leveragingtheexistingassets:

• Databases,

• Analysis&ReportingSystems,

• AcknowledgedExpertise,and

• ClientRelationships.

19

vAlueSBuildingtruewealthisaboutconsistenthonestyandintegrity.Therearenoshort-

cuts;transparency,goodcorporategovernanceandcompliancearethekeys.

Profitabilityisparamount,butnotonlytobenefittheshareholders,beingprofitable

enablesustoinvestinourpeopleandourtechnology–itwillenableustoachieve

ourVision.

Asindividualsandasagroupwearetenaciousandaredriventosucceedandwe

alwaysdeliveronourpromises.

Weareacaringcompany–sensitivetotheneedsofouremployees.RGTSMART

andallitssubsidiariesarecommittedtotheongoingdevelopmentofourpeopleand

theircareers. Ourpeoplewillbemotivatedandexcitedbyopportunitiestoshow-

casetheirtalentsandshine.

WehavesinceresupportforSouthAfrica’stransformationagenda,notbecausewe

areforcedtobylegislationbutbecausewebelieveintheobjectivesandimpacton

societyandourcountry.

20

ChAIRMAn’s stAteMent

AsChairmanoftheBoardofRGTSmart,Ihavebeenfortunatetohavebeencloselyinvolvedwiththecompanysincethe

inceptionofthebusiness.Thefoundersoftwoverydifferent,buthugelycomplimentarybusiness,determinedthattheir

potentialtogetherwasfargreaterthantheirdestiniesapartandIwasinvitedtoassistinthisexcitinganddynamicventure.

It’sbeenafascinatingjourneythatIcontinuetobeproudlyassociatedwithespeciallyduringthisdynamiceconomicand

politicalenvironmentinwhichthebusinessoperates.

Thelastfinancialyearhasbeencharacterisedwitheconomicuncertaintyandburstsofrecoverytotheglobaleconomic

system.AlthoughSouthAfricahasexperiencedagooddegreeofpositivesentimentdrivenbyinfrastrastructureandpublic

expenditureresultingfromthehostingofFIFA’sSoccerWorldCup2010,astrongcurrencyandaresilientstockmarket,

bothcorporateandhouseholdexpenditureremainscautious. RGTSmartMarket IntelligenceLimitedoperates largely

intheAutomotiveIndustryandalthoughthisindustryhasexperiencedasignificantrecoveryweremaincautiousasour

clients’spendingandserviceneedsareindicativeofthisimpactandpotentialforgrowthofalowbase.

ThefinancialresultspresentedinthisAnnualReportrepresentRGTSMARTMarketIntelligenceLimited’smaidenresultsas

alistedcompanyandinspiteofgoingtomarketattheheightoftheglobalfinancialcrisisthecompanyhas,inmyopinion,

performedadmirably.

Shareholderswillbepleasedthatthecompanyhasbeenveryfortunatetoassembleaboardcomprisedofexperienced,

competentandvalues-baseddirectors.ItgivesmegreatpleasuretoextendaspecialwelcomeSybrand“Brand”Pretorius,

TrevorHayterandCumeshMoodliartothegroupboard,allofwhomoffertremendousinsight,abreadthofexperienceand

focusthatwillenhancenotonlyRGTSMART’scredibilitybutalsosupporttheexecutiveteamsinachievingtheirgoals.

Fromtheoutset thePaulDeVantier (ChiefExecutiveOfficer),hasmadeasincerecommitment topropergovernance,

transparencyandcomplianceandasanindependentnon-executivechaironeofmyprimaryroleshasbeentoguideand

sustainthiscommitmentandI’mpleasedtoreportthatithasbeenapleasuretodosowiththisteam.TheRGTSMART

executivethink,actandbehavewithamaturitythatbeliesthecompany’ssizeandexperienceinthelistedenvironment

anditisatestamenttoPaul’scommitmenttoinvolvequalifiedandexperiencednon-executiveswhoaddgreatvalueto

thecompany.

Broad-basedBlackEconomicEmpowermentisastandingitemonRGTBoardagendaandgoodprogresshasbeenmade.

ThelatestBEEscorecardstobeissuedthisyearwillseeRGTimprovefromalevel8in2010toalevel4(100%contributor)

in2011andweexpectKASMARTtoachievealevel3certificatein2012.ThecommitmenttoB-BBEEgoesmuchfurther

however;atgrouplevelaninternalteamguidesandadvisesmanagementonvariousBEE,strategiesandinitiativeswith

progressbeingmonitoredmonthlybytheexecutive.

RiskManagementdisciplinestooarewellestablishedwithformalRiskReviewstakingplaceeverymonthatanoperational

levelandquarterly,atastrategiclevel.

Lookingforward,theentrepreneurialflairthatcharacterisedtheoriginalbusinessescontinuestoflourishandtheassociated

drivewillserveallthestakeholderswellasRGTSMARTgrowsfromstrengthtostrength.Thecompanyoperatesinafast

growingsector–providing intelligencebaseddecisionsupportservicesand iswellpositionedwithuniquetechnology,

superiorsystemsandaprofessionalteam.

Thecompanyisprofitable,cashgenerativeandthefinancialfundamentalsaresound.Theboardwillcontinuetofocus

onthestrategicopportunitiestofasttrackgrowthandleveragetheresourcesthatthecompanyhasbuiltupoverthelast

3years.

Lastly,Iwouldliketoextendmysinceregratitudetoallourinvestors,clientsandbusinesspartners,businessassociations,

suppliersandemployeeswhosepositivesupportandinvolvementarekeytotheongoingsuccessofRGTSMART.

AlfredDaCosta

Chairman

21

Ceo’s ReVIeW

BackinJune2008RGTSMARTMarketIntelligenceLimitedwasformedtoacquireRepublicComputerServices(Pty)Ltd

(RGT)andKASMARTManagementConsultants(Pty)LtdwiththeexpresspurposeoflistingtheGrouponAltX.Wespent

sometimeconsolidatingoperationsand“corporatising”twosuccessfulfamilyownedbusinessesbeforerealisingourfirst

objective–thelisting–onApril142010.Thishasbeenanextremelybusyyearwithsignificantprogressbeingmadeon

manyfronts.

Combiningdifferentcorporateculturesischallengingatthebestoftimesandinspiteofkeepingfocusongrowingand

securingthebusiness,makingsubstantialstructuralandoperationalchangesandintroducingarangeofnewdisciplines

theteamhasgelledtogetherratherwellandRGTSMARTistodaystronglypositionedgoingforward.

finAnciAl overvieW

Inspiteoftheenergyabsorbedbyrestructuring,processimprovement,compliance,governanceandreportingthecompany

hasperformedwellandwearepleasedwiththeresultsachievedinthisourfirstyearinthelistedenvironment.

For2010/11revenueimprovedtoR27.7million(upby8.3%)whiletotalcostsonlyincreasedby5.2%.WhileHeadline

earningsareupby33.4%andHEPSupby19.2%wehavetoacknowledgethatthisisaflatteringcomparisonbecause

thecomparativefiguresareimpactedbylistingcostsinbothyearsandimpairmentandsharebasedpaymentsintheprior

year.

NonethelessprofitaftertaxofjustunderR3.3minabsolutetermscanbeconsideredasatisfactoryperformance.

Key initiAtiveS

Weembarkedonanumberof initiativesthisyear. Itwasdeterminedthatthetwooperatingsubsidiaries(RGTandKA

SMART)would benefit greatly by amerged cross-company organisational structure that allowed for better sharing of

resources,managementandskills.Theplanalsoplacesownershipofoperationalperformanceondivisionalunitmanagers,

makingforamorecommitted,moreinvolvedteamgearedforgrowth.Goingforwardincomewillbederivedfromfour

operationalunits:

• NAAMSA&SAAMA:focusedonRGTstraditionalcorebusinessofprovidingonlinestatisticalservicestothemotorand

agriculturalmachinerybusinesses.

• ServiceQualitySystems,(SQS&CSI):managingtheSQSandCSIcomponentsoftheBusiness.

• Research, Analysis and Special Projects: this unit handles the value added consulting, advanced analysis and

variousad-hocprojects.TheunitalsohousestheRGTSMARTInnovationUnitresponsiblefordrivingnewproduct

developmentatRGTSMART.

• RGTAcademy:theRGTAcademyisfocusedondeliveringagrowingsuiteoftrainingsolutionsforourclients.

Theincomeunitswillbesupportedbyfoursupportdivisions:

• InformationSolutions:thisunit,dividedintotwosections;Infrastructure,responsiblefortheinstalledhardwareand

softwaresystemsandDevelopment,responsibleforsystemsdevelopmentandsupport,providestheITplatformand

backboneoftheRGTSMARTorganisation.

• MarketingandSales:providinggroup-widemarketingandsalessupport.

• BackOffice:theBackOfficefunctionsupportingdaytodayadministrationandhousekeeping.

• Finance&Administration:theall-importantaccountingandfinancialcontrolunitwhichwillmanageandreporton

eachoperationalunit’sfinancialperformanceandproducethecombinedmanagementaccounts.

Ibelievethatvastlyimprovedproductivityandefficiencywillresultfromthisnewoperationalstructure.

22

BecauseRGTisawell-establishedmaturebusinesswithmanyofitsproductsnearingsaturationnewproductdevelopment

isthekeytoacceleratedgrowth.Thereisunlimitedpotentialtodevelopandlaunchnewproductsandinnovationsandre-

vampsomeexistingones.Tomanageanddrivethisprocess,anInnovationUnitwasestablishedthisyear.TheInnovation

Unitwillevaluatenewproductconceptsandonceassessedviabletheunitwillensureimplementationofthedevelopment

andmarketingoftheseinitiatives.Alreadyit’shavinganimpact:

• NewAutoMSA:RGT’sMarketSegmentAnalyser(AutoMSA),thethirdbiggestrevenuegeneratorforthecompanyhas

becomealittledated.ThenewonlineversionisbeingpilotedwithmajorclientinstallationsduringMayandJune2011

withafullscalelaunchscheduledforJuly.

• PartsPricingSystem:WithdatafrommultiplesourcesincludingtheRGTNAAMSAsystemstheteamisdeveloping

anonlinecomparativepartspricingsystem.Weknowthereisdemandforthisserviceandexpectthenewsystemto

attractasignificantnumberofsubscribers.

• PublicAccessAutoSpecs:FormanyyearsRGThasprovidedmostmajorautomotivemediawithasystemunderpinning

comparativevehiclespecificationsegments to their respectiveWebSites. RGTwillbedevelopingourownPublic

Accesswebsiteprovidingconsumerswithstate-of-the-artcomparativecapability.Thebusinessmodelwillrelyon

intelligentinteractiveadvertisingonthewebsite.ThiswillforthefirsttimeprovideRGTSMARTwitha“publicface”.

• AutoForecast:AfollowupmodulefortheNewAutoMSAproductwillincludeasophisticatedmarketforecastingtool.

• AutoGreenFleet:TakingadvantageofthecurrenttopicalfocusonGreenIssues–andinparticulartheCO2emissions

taxAutoGreenFleet has been developed in partnershipwithMobiltas to provide fleet userswithmonth-by-month

accuratemeasurementandtrackingofthecarbonfootprintofeveryvehicleintheirfleets–thiswillallowfordriver

efficiencymanagementandfeedneatlyintocarbonoffsetactivity.AdditionallyRGTSisalsoevaluatingtheintroduction

ofapublicaccessportalforthemaninthestreettomeasurehisimpactontheenvironment.

TheKASMARTSQSproductstillhasenormousgrowthpotentialandthefocusherewillbetocontinueexpansioninto

othersegmentsandwidermarketsthatbeganduring2010.AnumberofopportunitieswithMotorDealernetworksand

theFastFitindustriesarecurrentlybeingpursued.

ItisalsologicaltoleverageouracknowledgedexpertiseintheMotorIndustryasmuchaspossible,in2010thefocuswas

onensuringstabilityandcontinuityandstrengtheningalreadystrongtieswithindustrybodiessuchasNAAMSA,NADA,

RMI,SAAMA,SAMBRAandNAACAManddirectlywiththemanufacturers,importersanddealers.

RGTSMARTisinvestingheavilyindramaticallyimprovedsoftwareandhardwareinfrastructure.ThenewRGTBI(Business

Intelligence)Engine–indevelopmentformanymonthsnow–willtakeoverfromlegacymainframesystemsbymid-year

andacompleteupdateofthehardwareplatformtotakeadvantageofthelatesttechnologyiscurrentlybeingdeployed.

ImportantlytheBIEnginehasbeendesignedtobeindustryneutralandRGTisnowcapable,withoutfurtherdevelopment,

toincorporatemarketdatarelatingtoanyindustryandanymarket,openinguparangeofexpansionpossibilitiestobe

exploredinthefuture.

develoPinG And GroWinG the teAm

There isnodoubt thatsustainedgrowth forourcompany isgoing tocomefromdevelopingourpeopleandRGTand

KASMARTwillcontinueinvestmentinthisarea.ForthedevelopersandinformationsolutionssupportteamstheMicrosoft

Certified trainingprogramsarebeingpromotedandsuccessfulcompletionofcourses is rewardeddirectly. Training is

encouragedandrewarded.

Evenwiththisgrowthhasbeenconstrainedbysimplynothavingenoughtimetogettoalltheopportunitiesandprovide

forthedemandandsothereisnodoubtthatbringingnewtalentonboardmustbeapriorityinthenextyearortwo;it’san

investmentthatwillpayoffinthemediumterm.

23

leGiSlAtive environment

We’ve been very aware of the developing legislative environment and the potential impact on our current and future

business.Legalandbusinessadvisorshavekeptusabreastofoverarchingdevelopmentssuchasthenewcompanies

actandRGTSiswellaheadofthecurveonadaptingtothesechanges.Therehasbeenotherimportantlegislationthat

we’vebeenacutelyawareof;TheConsumerProtectionAct(CPA)hashadsignificantimpact–moresoonourclients–

andwe’veadaptedallcontractstoensurecompletecompliance.TheProtectionofPersonalInformation(POPI)Billonce

enactedwillalsoaffectaspectsofRGTandKASMARTbusinessrelationshipsandagainweareaheadofthecurvein

adoptingprocessesandpracticesthattakeaccountofprovisionswhichmayimpactonourbusiness.TheCompetitions

ActtooisimportantandRGTSthoroughlyresearchesallaspectsoftheseandassociatedlawstoensurethatweandour

clientsareneveratrisk.

APPreciAtion

TheExecutiveDirectors,Dr.NealBruton,CliffReedandIareproudtoworkwithaBoardofDirectorsthatwouldbetheenvy

ofmanymuchlargerenterprises,andwhileaBoardofthiscalibermayseemlikesomethingofanover-killforabusiness

assmallasRGTS;it’snotourintentiontostaysmall.TheRGTSnon-executiveshavenotbeenpassiveeither–theyare

involvedandengaged–andIhavepersonallygrownasamanagerandbusinessmanthroughtheirsupportandinteraction.

Thisreviewismyannualopportunitytopubliclyexpressappreciationandthanksfortheirsupportandguidancethrough

theyear.

Ourdesignatedadvisors,ArcayMoelaandinparticularMicheleKrastanov(DA)andJulieBoel(SecretarialServices)have

beenoutstandingintheirsupport,assistanceanddedicationthathasmadeuslookgood.

Last,andbynomeansleast,it’simportanttorecogniseandthankthemanagementandstaffatRGTandKASMARTfor

theirhardworkandcommitmentinbuildingRGTS.

ThislastyearhasbeenagreatprivilegeandahugeeducationformeandIamlookingforwardtothenextfewyearswith

thisteam.

PaulBDeVantier

ChiefExecutiveOfficer

24

InteGRAted RePoRt - GoVeRnAnCeIntegrated Report As At 28 February 2011

TheBoardofDirectorsisfirmlycommittedtopromotingcorporategovernanceandhasimplementedtherecommendationsas

containedinthesecondKingReportonCorporateGovernanceforSouthAfrica2002(“KingII”)andKingIIIwhereappropriate.

Inaddition,therequirementsofTheCompaniesAct,2008astheyrelatetocorporategovernanceandtotheCompanyhave

beenconsidered.TheBoardhascontinuedimplementingvariousaspectsofcompliancewithKingIIIduringtheyearasmore

fullydetailedbelow.

1. comPoSition of the boArd

Atthedateofthisreport,theboardconsistedofsevenmembers,fourofwhichareindependentnon-executivedirectors.

In linewith the introduction of King III, the board ofRGTSMARTdecided to restructure the board. Accordingly, four

of theexecutivedirectors resigned fromtheCompany’sboardandremainasdirectorson theboardsof theoperating

subsidiaries.Furthermore, theRGTSMARTboardappointed threeadditional independentnon-executivedirectorsand

oneadditionalnon-executivedirector.TheChairmanoftheboardisnon-executiveandindependent.Thenon-executive

directorsareofsufficientcalibrefortheirviewstocarrysignificantweightintheBoard’sdecisions.TheBoardmeetingsare

attendedbyrepresentativesfromtheCompany’sDesignatedAdvisorinaccordancewithJSEListingsRequirementsfor

companieslistedontheAlternativeExchange(“AltX”).

ThedirectorsoftheCompanyaresetoutonpages35oftheAnnualReport.

2. indePendence of the boArd

Therolesofchairmanandchiefexecutiveofficerareseparated.TheBoardischairedbyanon-executive,independent

director,MrAlfredAnthonyDaCostaduringtheyearunderreviewandMrPaulDeVantieristheCompany’schiefexecutive

officer.Thenon-executivedirectorsarenotappointedunderservicecontractsandtheirremuneration(seepage70)isnot

tiedtotheGroup’sfinancialperformance.

3. APPointment And re-election of the boArd

Anymemberoftheboardcannominateanewappointmenttotheboard,whichwillbeconsideredataboardmeeting.

Thenominateddirector’sexpertiseandexperiencewillbeconsideredbytheboardaswellasanyneedsoftheboardin

consideringsuchappointment.InaccordancewithAltXListingsRequirementsanominationcommitteeisnotrequiredand

thesizeoftheCompanydoesnotwarranttheestablishmentofanominationcommittee.

4. role And function of the boArd

ThearticlesofassociationoftheCompanyarethecharterwhichgovernsthedirectors’roleandresponsibilities.TheBoard

retainsfull,effectivecontrolovertheGroup,providesstrategicdirectionanddelegatescertainpowerstomanagement.

Theday-to-daymanagementoftheGroupisvestedintheexecutivedirectors.

TheBoarddeterminestheCompany’spurposeandvalues,ensuresthattheGroupcomplieswithcodesofsoundbusiness

practiceandhasunrestrictedrightofaccesstoallCompanyinformation,records,documentsandpropertyandindependent

legaladvicewhenrequired.

TheDirectorsrecognisethattheyareresponsiblefortheGroup’ssystemoffinancialandinternalcontrols.Theexecutive

directorsareresponsibleforidentifying,analysing,reportingandmanagingGroupriskwhichformspartoftheireveryday

functions.Theboardisresponsibleforrelationswithstakeholders,aswellasbeingaccountabletothemfortheperformance

of theCompany, and reporting thereon in a timely and transparentmanner. The board is responsible for presenting

abalancedandunderstandableassessmentof theCompany’sfinancialpositionwith respect toall financialandprice

sensitivereportsontheCompany.

InaccordancewithAltXListingsRequirements, thedirectorsofRGTSMARTarerequiredtoattenda4-day,Directors’

InductionProgram.Alltheexecutiveandnon-executivedirectors,whererequired,haveattendedthiscourse.

25

5. boArd committeeS

AltXListingsRequirementsonlyprovidefortheestablishmentofanauditcommittee.Theauditcommitteeisalsoresponsible

forallriskmatters.ThiscommitteereportstotheBoardofdirectors.

5.1 Audit committee

Duringtheyearunderreviewthecompositionoftheauditcommitteeconsistedoftwonon-executivemembers,namely

Alfred Da Costa and Jacques Magliolo (chairman). A representative from the Designated Advisor attended the audit

committeemeetingsincompliancewiththeAltXListingRequirements.KingIIIrecommendsthatthechairmanoftheBoard

shouldnotbethechairmanoftheauditcommittee;furthermoreKingIIIadvisesthattheauditcommitteesconsistofatleast

threeindependentnon-executivedirectors.Accordingly,MrCumeshanMoodliarwasappointedasanindependentnon-

executivedirectorwitheffectfrom05May2010andMrTrevorHayterappointedindependentnon-executivedirectorwith

effectfrom03September2010whichtwonewdirectorsalsoservedasmembersontheauditcommittee.MrJMagliolo

resignedasadirectoron31December2010andMrTrevorHayterwasappointedaschairmanoftheauditcommittee.

Theauditcommitteemetfivetimesduringtheyear,andmeetsatleasttwiceayear.Partnersoftheexternalauditorarein

attendanceatthemeetings.Themajorityofthemembersoftheauditandriskcommitteearefinanciallyliterate.TheBoard

ofDirectorsofRGTSMARThasunrestrictedaccesstothecommittee.

Theauditcommitteemandateprovidesforthereviewingoffinancialinformation,theeffectivenessoftheinternalcontrols,

assessmentofriskrelatingtothebusinessandindustry,accountingpolicies,thecodeofethics,complianceprocedures,audit

feesandreportingthereontotheBoard.Theauditcommitteehasapproveditsresponsibilitiesintermsofthismandate.

6. boArd And committee meetinGS And AttendAnce thereof

TheBoardmeetsonaregularbasiswherepossible,butataminimumeverythreemonths.Thedirectorsareproperly

briefedinrespectofspecialbusinesspriortoBoardmeetingsandinformationistimeouslyprovidedtoenablethemtogive

fullconsiderationtoalltheissuesbeingdealtwith.Thedirectorsdomakefurtherenquirieswherenecessary.

Fiveboardmeetingswereheldduringthefinancialyearended28February2011andoneaftertheyearenduntilthedate

ofthisreport.Fiveauditcommitteemeetingshavebeenheldduringtheyearandoneafteryearend.Minutesarekeptof

allBoardandcommitteemeetings.

Theattendancesof thedirectorsasat28February2011 for theyearunder review, taking intoaccount theirdatesof

appointmentand/orresignation,wereasfollows:

% of audit risk committee meet-

ings attended

Number of meetings

attended (5)

- -

100% 5/5

- -

- -

100% 4/4

100% 2/2

- -

100% 4/4

- -

- -

- -

- -

Director/ committeemember

% of Board meetings attended

Number of meetings

attended (5)

PBDeVantier 100% 5/5

AADaCosta 100% 5/5

NSBruton 100% 5/5

CWReed 100% 5/5

CJMoodliar** 100% 4/4

TBHayter^ 100% 2/2

SGPretorius~ - -

JMagliolo* 100% 4/4

MKruger# 0% 0/1

AWCalcutt# 100% 1/1

GJGrundlingh# 100% 1/1

HCoetzee# 100% 1/1

** appointed 05 May 2010 ^ appointed 03 September 2010

# resigned on 29 April 2010* resigned on 31 December 2010

~ appointed 01 March 2011

Alldirectors,committeemembersandchairmanareencouragedtoattendtheannualgeneralmeetingoftheCompany.The

auditorsarerequiredtoattendtheannualgeneralmeetingincompliancewiththeCorporateAmendmentsAct,published

on14December2007.

26

7. intereStS of directorS And officerS

Theregisterofinterestsofdirectorsincontracts,isavailabletomembersofthepubliconrequest.

Theinterests(directandindirect)ofdirectorsandofficersintheCompany’ssecuritiesasat28February2011areshown

inthetablebelow:

Intermsofacirculartoshareholdersdated23December2010,theCompany’ssubsidiary,RGT,repurchased37781700

ordinarysharesfromTheKrugerPrimaryTrustwhichtrustisheldbyMrMartinKrugerwhowasapreviousdirectorofthe

Company.Thespecificrepurchasefromarelatedpartywasapprovedbyshareholdersingeneralmeetingon01February

2011.

Thefollowingchangestookplacetothedirectors’interestsinthesharecapitaloftheCompanybetween28February2011

andthedateofpostingofthisannualreportduetoachangeincontrolwhichwasagreedinasubscriptionagreement

betweenRGTSMARTandH.LHallsandSonsInvestments(Proprietary)Limited(“Halls”)wherebyHallswouldacquireup

to43%intheCompany’ssharecapitalthroughasubscriptionofnewsharesaswellastheacquisitionofthebelowshares

fromcertaindirectors.

8. comPAny SecretAry

Alldirectorshaveaccess to theadviceandservicesofArcayClientSupport (Pty)Ltd (“ACS”),which fulfils the roleof

companysecretary.TheBoardisoftheopinionthatthemanagementofACShastherequisiteattributes,experienceand

qualificationstofulfilitscommitmentseffectively.ACSperformsthecompanysecretarialdutiesforRGTSMART.

Shares held Beneficially Held

Direct Indirect

PBDeVantier - 100392205

NSBruton - 103751168

CWReed 1100000 10600000

JMagliolo* 2700000 -

CJMoodliar** - -

TBHayter^ - -

SGPretorius~ - -

MKruger# - 74807352

AWCalcutt# - 22736000

GJGrundlingh# 12223077 -

TOTAL 16023077 312286725

Total Shares Percentage

100392205 22.90%

103751168 23.70%

11700000 2.70%

2700000 0.60%

- -

- -

- -

74807352 17.09%

22736000 5.20%

12223077 2.80%

328309802 74.99%

** appointed 05 May 2010 ^ appointed 03 September 2010

# resigned on 29 April 2010* resigned on 31 December 2010

~ appointed 01 March 2011

Name of director/subsidiary directors Number of shares agreed to be sold

DeVantier 15000000

Bruton 20000000

Calcutt(subsidiarydirector) 3500000

Grundlingh(subsidiarydirector) 2223076

Total 40723076

27

9. eXternAl AuditorS And Audit

The auditors of theGroup areMazars.Mazars performs an independent and objective audit on theGroup’s financial

statements,whichincludestheholdingcompanyandsubsidiaries.ThestatementsarepreparedintermsoftheInternational

FinancialReportingStandards(“IFRS”).Interimreportsarenotaudited.Theauditcommitteereviewstheauditfeesforthe

audit.Theauditorshaveunrestrictedaccesstotheauditcommitteeandareinvitedtoallauditcommitteemeetings.The

re-appointmentoftheauditorsorappointmentofnewauditorsisreviewedbytheauditcommittee.

Theauditorsdonotperformanynon-auditservices.

See accounting and internal controls for the directors’ responsibility and role in respect of the audit and accounting

records.

10. AccountinG And internAl controlS

TheBoardhasestablishedcontrolsandprocedurestoensuretheaccuracyandintegrityoftheaccountingrecordsand

monitorstheGroup’sbusinessesandtheirperformance.Thecontrolsaredesignedtoprovidereasonableassurancethat

assetsaresafeguardedfromlossorunauthoriseduseandthatthefinancialrecordsmayberelieduponformaintaining

accountabilityforassetsandliabilitiesandpreparingthefinancialstatements.Thestatementofdirectors’responsibilityis

setoutonpage34.

11. internAl Audit

Giventhesizeandnatureofbusinessofthegroup,thereisnointernalauditprocess.

12. non-finAnciAl mAtterS

RGTSMARTsubscribestothehighestethicalstandardsandbehaviourintheconductofitsbusinessandrelatedactivities,

andrequirestotalhonestyandintegrityfromitsdirectorsandemployees.RGTSMARTexpectsitsshareholders,suppliers

andpartnerstosubscribetothesamehighethicalstandards.

13. communicAtionS With StAKeholderS

TheGroupiscommittedtoongoingandeffectivecommunicationwithstakeholders.Itsubscribestoapolicyofopenand

timeouscommunicationinlinewithJSELimitedguidelines,soundcorporategovernanceandmanagesthesethroughits

investorrelationsprogramme.

14. SuStAinAbility rePortinG And Green AGendA

TheGroupiscommittedtohighmoral,ethicalandlegalstandardsandexpectsallrepresentativesoftheGrouptoactin

accordancewiththehigheststandardsofpersonalandprofessionalintegrityinallaspectsoftheiractivitiesandtocomply

withallapplicablelaws,regulationsandtheGroup’spolicies.

TheBoardbelievesthattheGrouphasadheredtotheethicalstandardsduringtheyearunderreview.Theoverallwell-being

ofouremployeesisregardedasveryimportantandRGTSMARTencouragesitsemployeestoraiseanyissueswiththe

executivedirectors.

Beingacompanyfocusingondatamanagementandenhancement,theCompanyrecognisesthatitsdirectenvironmental

impactsareassociatedprimarilywiththeoperationoftheofficeandITinfrastructure.Systemsaimedatreducingresource

consumptionovertimeareinplaceandtheCompanyiscontinuouslyexploringwaysinwhichtoreducepaper,energyand

waterusage.TheCompanyhasrecentlymoveditsoperationstoanenergyefficientofficeblock.

TheboardhasaGreenAgendaasastandardagendaitematitsboardmeetings.Theboardhasassignedresponsibility

tooverseethesechangesandtheimplementationofthegreenpolicytoanindividualwithineachoperatingsubsidiary.

TheseindividualswillsetperformancetargetsonsustainabilityinlinewithRGTSMART’sgreenpolicy.TheCompanywill

beimplementingthejourneytowards“CarbonNeutral”certificationduring2011.

28

15. emPloyment, develoPment And emPloyment eQuity

TheCompanypromotesaculturethatprovidesallemployeeswithopportunitiestoadvancetotheiroptimallevelsofcareer

development.TheCompanyencouragesparticipationintheownershipofRGTSMARTbyitsemployeesthroughtheplacing

ofsharesofthepublicofferwithstaffattheCompany.

TheCompanyupholdsandsupportstheobjectivesoftheEmploymentEquityActandintendsimplementingvariousinitiatives

thatprovideopportunitiesforall levelsofstaffwithin itsvariousdevelopmentsastheybecomeestablishedandwillseek

topositionitselfasanemployerofchoice,whilstatthesametimeenhancingitsparticipationinmakingSouthAfricamore

internationallycompetitive.

TheCompany’semploymentpoliciesaredesignedtoprovideequalopportunities,withoutdiscrimination,toallemployees.

Socio-EconomictargetswillbemetthisyearwiththeawardingofaKASmartMarketingBursarytoaqualifyingpostgraduate

fulltimestudentstudyingattheNelsonMandelMetropolitanUniversity.RGT’sSocio-Economictargetwillbeachievedby

selectingOosterlandasabeneficiarywhoarereceivingafixedmonthlyfinancialdonation.OosterlandYouthCentresituated

inDespatchsince1980,accommodates120childrenplacedintheircarebytheChildren’sCourt.Thesearechildrenwhoare

inneedofcareandincludethosethataredestitute,orphaned,abused,orneglected.

TheCompanyisintheprocessofestablishingatransformationsub-committeeatsubsidiarylevelwhichwillover-seematters

ofhumanresource,BEEandtransformation.

16. bee

Steps takenby theCompany to achieve an improvedBEE level include the training of IT staff onMicrosoftCertified

coursestoimproveskillsrequiredaswellassupporttheMicrosoftCertifiedPartnerstatusaswellasvariousinternalSkills

DevelopmentinitiativesandusingBEEcertifiedsuppliers.

RGTSMARTcurrentlyholdsalevel4BEEcertificate.

17. termS of reference

RGTSMARTtabledandapprovedtermsof references for theboardandauditcommitteepreviouslyandundertaketo

revisitthesetermsofreferencesonceayeartoensuretheyareinlinewithgoodcorporategovernanceandKingIII.

18. riSK mAtterS

Riskmattersisastandardagendaitemthattheauditcommitteeconsidersateachmeeting.Thecommitteeappliesits

mindtoanddiscussesriskswithintheGroupthatneedaddressing.Riskmattersarepresentedinmoredetailonpage73

ofannualfinancialstatements.

19. remunerAtion mAtterS

Remunerationmattersaredelegatedtoasub-committeeoftheboardwhichisledbythreeindependentnon-executive

directorsandwhichcommitteeassessestheremunerationoftheexecutivedirectorsandmanagement.Furtherdisclosure

onthedirectors’remunerationcanbefoundonpage72oftheannualfinancialstatements.

20.cloSed And Prohibited PeriodS

AclosedperiodisexercisedbytheGroup’sdirectorsfromthedateofthereportingperioduntiltheGroup’sresultsare

publishedonSENS.Additionalclosedandprohibitedperiodsareenforcedasrequiredintermsofanycorporateactivity

orwhendirectorsareinpossessionofpricesensitiveinformation.Allthedirectorsareawareofthelegislationregulating

insider trading. A record of dealings by directors in theCompany’s securities is retained by theCompanySecretary

at theregisteredofficeoftheCompany,aswellasannouncedonSENSinaccordancewiththeJSELimited’sListings

Requirements.

21. trAnSfer office

LinkMarketServices(Proprietary)LimitedactsastransfersecretariestotheCompany.

29

deCLARAtIon by CoMPAny seCRetARy

TheCompanySecretarycertifiesthattheCompanyhaslodgedwiththeRegistrarofCompanies,allsuchreturnsasarerequired

ofapubliccompany,intermsofsection268G(d)oftheCompaniesAct,No61of1973,asamended,andthatallsuchreturns

aretrue,correctanduptodatetotheextentthattheCompanySecretaryhasbeeninformed.

ArcayClientSupport(Pty)Limited

RegistrationNumber1998/025284/07

CompanySecretary

25May2011

30

RePoRt oF the AudIt CoMMIttee for the year ended 28 February 2011

ThereportoftheauditcommitteeispresentedasrequiredbySections61(8)JTheCompaniesAct,2008.

1. functionS And reSPonSibilitieS of the Audit committee

Theroleoftheauditcommitteeistoassisttheboardbyperforminganobjectiveandindependentreviewofthefunctioning

of the organisation’s finance and accounting controlmechanisms. It exercises its functions through close liaison and

communicationwithcorporatemanagementandtheinternalandexternalauditors.

Thecommitteeisguidedbyitstermsofreference,dealingwithmembership,structureandlevelsofauthorityandhasthe

followingresponsibilities:

• ensuringcompliancewithapplicablelegislationandtherequirementsofregulatoryauthorities;

• nominatingforappointmentaregisteredauditorwho,intheopinionoftheauditcommittee,isindependentofthe

company;

• mattersrelatingtofinancialaccounting,accountingpolicies,reportinganddisclosure;

• internalandexternalauditpolicyincludingdeterminationoffeesandtermsofengagement;

• tosatisfyitselfthatthefinancialdirectorhasappropriateexpertiseandexperience;

• activities,scope,adequacy,andeffectivenessoftheinternalauditfunctionandauditplans;

• review/approvalofexternalauditplans,findings,problems,reports,feesanddeterminationandapprovalofanynon-

auditservicesthattheauditormayprovidetothecompany;

• compliancewiththeCodeofCorporatePracticesandConduct;and

• compliancewiththecompany’scodeofethics.

Theauditcommitteeaddresseditsresponsibilitiesproperlyintermsofthecharterduringthe2011financialyear.Oneof

theseresponsibilitieswastheassessmentoftheindependenceoftheauditor.Thecommitteeissatisfiedthattheauditor

wasindependentofthecompany.Nochangestothecharterwereadoptedduringthe2011financialyear.

Inaddition,thecommitteehasestablishedapolicyaswellasrequiredprocedureswithregardtotheuseoftheexternal

auditorsfornon-auditservices.

2. memberS of the Audit committee

Theauditcommitteeconsistedofthreeindependentnon-executivesdirectors,namely,TBHayter(Chairman),CJMoodliar

and AA Da Costa. A representative from the company’s Designated Advisor in accordance with the JSE Limited’s

requirementsrelatingtotheAlternativeExchangeattendedallcommitteemeetings.

TheauditcommitteewaspreviouslychairedbyMrJMagliolowhoresignedfromtheboardwitheffectfrom31December

2010andaccordinglyMrTBHaytertookoverasthecommittee’schairperson.

3. freQuency of meetinGS

Thecommitteemetfivetimesduringthe2011financialyear.

4. indePendence of eXternAl Audit

Oneoftheresponsibilitiesoftheauditcommitteewastheassessmentoftheindependenceoftheexternalauditor.The

committeeissatisfiedthattheexternalauditorisindependentofthecompanyandgroup.Theexternalauditorhasalso

confirmedthatitspersonnelareindependentofthecompanyandgroup.

31

5. eXPertiSe And eXPerience of finAnciAl director

AsrequiredbyJSEListingsRequirements3.84(h),theauditcommitteehassatisfieditselfthatthefinancialdirectorhas

appropriateexpertiseandexperience.

6. finAnciAl StAtementS

Managementhasreviewedthefinancialstatementswiththeauditcommittee.Thequalityoftheaccountingpoliciesare

discussedwith the external auditors. The audit committee considers the financial statements of RGTSMARTMarket

IntelligenceLimited tobea fairpresentationof itsfinancialpositionon the28February2011andof the resultsof the

operations,changesinequityandcashflowsfortheperiodendedthen,inaccordancewithInternationalFinancialReporting

StandardsandtheCompaniesAct.

Audit Committee Chairperson

TrevorHayter

32

IndependentAuditorsReport

Directors’Responsibilities&Approval

Directors’Report

ConsolidatedBalanceSheet

ConsolidatedIncomeStatement

ConsolidatedStatementofChangesinEquity

ConsolidatedCashFlowStatement

AccountingPolicies

NotestotheGroupAnnualFinancialStatements

33

34

35

37

38

39

41

42

51

finAnciAl StAtementS:

33

IndePendent AudItoR’s RePoRt to the members of RGT Smart Market Intelligence Limited

rePort on finAnciAl StAtementS

Wehave audited the group annual financial statements and the seperate Financial Statements of RGTSmartMarket

IntelligenceLimited,whichcomprise theconsolidatedstatementoffinancialpositionasat28February2011,and the

consolidated statement of comprehensive income, changes in equity and cash flows for the year then ended, and a

summaryofsignificantaccountingpoliciesandotherexplanatorynotes,andthedirectors’report,assetoutonpages35

to76.

directorS’ reSPonSibility for the finAnciAl StAtementS

Thecompany’sdirectorsareresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordance

withInternationalFinancialReportingStandards,andinthemannerrequiredbytheCompaniesActofSouthAfrica.This

responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair

presentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingand

applyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditor’S reSPonSibility

Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in

accordancewithInternationalStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplan

andperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.

Theproceduresselecteddependontheauditors’judgement,includingtheassessmentoftherisksofmaterialmisstatementof

thefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrol

relevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatare

appropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternal

control.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccounting

estimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethatthe

auditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

oPinion

Inouropinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionofRGTSmartMarket

IntelligenceLimitedat28February2011,anditsfinancialperformanceandcashflowsfortheyearthenendedinaccordance

withInternationalFinancialReportingStandards,andinthemannerrequiredbytheCompaniesActofSouthAfrica.

MAZARS

RegisteredAuditor

Partner:D.K.Reed

RegisteredAuditor

27May2011

PortElizabeth

34

stAteMent oF dIReCtoRs’ ResPonsIbILIty & APPRoVAL

ThedirectorsarerequiredbytheCompaniesActofSouthAfrica,tomaintainadequateaccountingrecordsandareresponsible

forthecontentandintegrityofthegroupannualfinancialstatementsandrelatedfinancialinformationincludedinthisreport.

It istheirresponsibilitytoensurethatthegroupannualfinancialstatementsfairlypresentthestateofaffairsofthegroupas

attheendofthefinancialyearandtheresultsofitsoperationsandcashflowsfortheperiodthenended,inconformitywith

InternationalFinancialReportingStandards.Theexternalauditorsareengagedtoexpressanindependentopiniononthegroup

annualfinancialstatements.

Thegroupannualfinancialstatementsareprepared inaccordancewith InternationalFinancialReportingStandardsandare

baseduponappropriateaccountingpoliciesconsistentlyappliedandsupportedbyreasonableandprudentjudgementsand

estimates.

Thedirectorsacknowledgethattheyareultimatelyresponsibleforthesystemof internalfinancialcontrolestablishedbythe

groupandplaceconsiderableimportanceonmaintainingastrongcontrolenvironment.Toenablethedirectorstomeetthese

responsibilities,thedirectorssetsstandardsfor internalcontrolaimedatreducingtheriskoferroror lossinacosteffective

manner.Thestandardsincludetheproperdelegationofresponsibilitieswithinaclearlydefinedframework,effectiveaccounting

proceduresandadequatesegregationofdutiestoensureanacceptablelevelofrisk.Thesecontrolsaremonitoredthroughout

thegroupandallemployeesarerequiredtomaintainthehighestethicalstandardsinensuringthegroup’sbusinessisconducted

inamannerthatinallreasonablecircumstancesisabovereproach.Thefocusofriskmanagementinthegroupisonidentifying,

assessing,managingandmonitoringallknownformsofriskacrossthegroup.Whileoperatingriskcannotbefullyeliminated,the

groupendeavourstominimiseitbyensuringthatappropriateinfrastructure,controls,systemsandethicalbehaviourareapplied

andmanagedwithinpredeterminedproceduresandconstraints.

Thedirectorsareoftheopinion,basedontheinformationandexplanationsgivenbymanagement,thatthesystemofinternal

control provides reasonable assurance that the financial recordsmay be relied on for the preparation of the group annual

financialstatements.However,anysystemofinternalfinancialcontrolcanprovideonlyreasonable,andnotabsolute,assurance

againstmaterialmisstatementorloss.

Thedirectorshavereviewedthegroup’scashflowforecastfortheyearto29February2012and,inthelightofthisreviewandthe

currentfinancialposition,theyaresatisfiedthatthegrouphasaccesstoadequateresourcestocontinueinoperationalexistence

fortheforeseeablefuture.

Theexternalauditorsareresponsibleforindependentlyreviewingandreportingonthegroup’sgroupannualfinancialstatements.

Thegroupannualfinancialstatementshavebeenexaminedbythegroup’sexternalauditorsandtheirreportispresentedon

pages33.

Thegroupannualfinancialstatementssetoutonpages35to76,whichhavebeenpreparedonthegoingconcernbasis,were

approvedbythedirectorson27May2011andweresignedonitsbehalfby:

CEO FinancialDirector

PauldeVantier CliffReed

35

dIReCtoRs’ RePoRt The directors submit their report for the year ended 28 February 2011.

1. bAcKGround, incorPorAtion And nAture of buSineSS

RGTSMARTMarketIntelligenceLimited(“RGTSMART”)wasregisteredandincorporatedasapubliccompanyintheRepublic

ofSouthAfricaon11June2008.RGTSMARTwasincorporatedinordertoactastheholdingcompanyaheadoftheGroup’s

intended listing for its two100%heldsubsidiaries,namely,KASMARTManagementConsulting (Proprietary)Limited (“KA

SMART”)andRepublicComputerServices(Proprietary)LimitedtradingasResponseGroupTrendline(“RGT”).

ThecompanylistedontheAlternativeExchangeoftheJSELimitedon14April2010.

2. AdoPtion of internAtionAl finAnciAl rePortinG StAndArdS

The accounting policies adopted for purposes of this report comply, and have been consistently applied in allmaterial

respects,withInternationalFinancialReportingStandards(“IFRS”).

3. finAnciAl reSultS

ThecompanyrecordedanoperatingprofitofR5,178,129comparedwithR4,051,879intheprioryear.

Expensesreflectthecurrentexpenditureandtakeintoaccountcertaincostsrelatedtothelistingprocessamountingto

R743,307.OfthiscostanamountofR438,131hasbeenwrittenoffagainstsharepremiuminthecurrentyear.

Nodividendsweredelaredintheyearunderreview.

4. AcQuiSitionS, diSPoSAlS And iSSueS of ShAreS for cASh

IntermsofthelistingontheAlternativeExchangeoftheJSELimited,57,000,000shareswereissuedforcash.

5. director chAnGeSDuringtheyearunderreviewthefollowingdirectorchangesoccured:DIRECTOR DATEAPPOINTED DATERESIGNEDMKruger 12June2008 29April2010ACCalcutt 12June2008 29April2010GJGrundlingh 12June2008 29April2010HCoetzee 10March2009 29April2010JMagliolo 12June2008 31December2010CJMoodliar 05May2010TBHayter 03September2010

Subsequenttoyearend,thefollowingdirectorchangeoccured:DIRECTOR DATEAPPOINTEDSGPretorius 01March2011

Theboardofdirectorsisnowconstitutedasfollows:DIRECTOR DATEAPPOINTED DESIGNATIONAAdaCosta* 12June2008 ChairmanPBdeVantier 12June2008 ChiefExecutiveOfficerNSBruton 12June2008 ExecutiveDirectorCWReed 12June2008 FinancialDirectorCJMoodliar* 05May2010 Non-ExecutiveDirectorTBHayter* 03September2010 Non-ExecutiveDirectorSGPretorious* 01March2011 Non-ExecutiveDirector

* Independent

36

6. intereSt in SubSidiArieS

Thecompanyisaholdingcompanyfortwosubsidiaries,allofwhichareincorporatedinSouthAfrica,anddetails

ofwhicharesetoutbelow:

Forfurtherdetailsofthecompany’sinvestmentinsubsidiaries,refertonote6oftheattachedfinancial

statements.

7. comPAny SecretAry

ArcayClientSupport(Proprietary)Limitedwillcontinueascompanysecretary.Refertoinsidebackcoverforthedetailsof

thecompanysecretary.

8. AuditorS

Mazarswillcontinueinofficeinaccordancewithsection90(1)oftheCompaniesAct,2008.

9. ShAre cAPitAl

Asat28February2011,therewere437800000issuedordinarysharesand62200000unissuedordinaryshares.

Includedintheissuedsharecapitalare37781700treasurysharesheldbyRepublicComputerServices(Proprietary)Limited.

10. dividend

TheCompanydoesnothavea formaldividendpolicyatpresent.TheBoardofDirectorswillcontinue toconsider the

paymentofdividendsonanannualbasis,basedonachievementofprofitandcashflowrequirements.

TheBoardintendstointroduceaformaldividendpayoutpolicyof33%oftheprofitaftertaxaftertwoyears,unlessthe

BoardisoftheopinionthatalowerdividendistobedeclaredbecauseofthenecessitytoapplytheGroup’scashresources

toplannedacquisitionsor that it is in the interestof theGrouptobuildupcashreserves for foreseeableunfavourable

marketoreconomicconditions.

TheCompanyhasnotdeterminedanyfixeddatesonwhichdividendsor entitlement todividendsarises.There is no

arrangementinwhichfuturedividendsarewaivedoragreedtobewaived.

11. litiGAtion

Thereisnolitigationpendingagainstthecompanyoritssubsidiaries,whichisexpectedtohaveamaterialimpactonthe

resultsofthecompany.

12. SubSeQuent eventS

On14March2011,shareholderswereadvisedthatasubscriptionagreementhasbeenconcludedwithH.L.HallandSons

Investments(Proprietary)Limited(“Halls”),on01March2011,wherebyHalls(throughoneofitssubsidiaries)acquireda

totalof215512128sharesinRGTSMART,throughtheissueof62200000unissuedordinarysharesat10centspershare

inRGTSMARTaswellasapurchaseof37781700treasurysharesat10centspershare,andthepurchaseof115530428

sharesfromdesignatedexistingshareholdersandtheKrugerPrimaryTrust.Theeffectoftheshareissueisincludedinthe

dilutedearningspersharecalculationcontainedinnotenumber35.

Otherthantheabovechanges,therewerenofurthersubsequentevents.

Name of subsidiary 28 February 2011Net income after tax (R)

28 February 2010 Net income after tax (R)

KASMARTManagementConsulting(Proprietary)Limited

1,455,892 1,435,806

RepublicComputerServices(Proprietary)Limited

2,321,253 930,175

37

CurrentLiabilities

Loansfromshareholders 14 978,547 569,438 978,547 -

Otherfinancialliabilities 15 2,470,498 3,656,291 - 186,400

Currenttaxpayable 682 679,524 - 14,579

Financeleaseobligation 16 - 49,472 - -

Operatingleaseliability 31,078 - - -

Tradeandotherpayables 17 2,153,763 1,749,744 585,166 317,109

Revenuereceivedinadvance 1,335,961 590,102 - -

Provisions 18 512,577 541,002 65,198 64,966

Bankoverdraft 10 - 381,059 - 315,577

7,483,106 8,216,632 1,628,911 898,631

TotalLiabilities 10,269,471 12,579,898 2,993,835 2,344,689

TotalEquityandLiabilities 28,373,375 25,142,647 36,476,489 31,110,331

liAbilitieS

Non-CurrentLiabilities

Loansfromshareholders 14 1,364,924 - 1,364,924 -

Otherfinancialliabilities 15 - 3,362,631 - 1,446,058

Financeleaseobligation 16 - 40,597 - -

Deferredtax 8 1,421,441 960,038 - -

2,786,365 4,363,266 1,364,924 1,446,058

eQuity And liAbilitieS

eQuity

Sharecapital 11 4,024,091 1,789,402 44,550,173 39,288,304

Retainedearnings 14,079,813 10,773,347 (11,067,519) (10,522,662)

18,103,904 12,562,749 33,482,654 28,765,642

CurrentAssets

Loanstogroupcompanies 7 - - 4,978,324 -

Currenttaxreceivable 923 - - -

Tradeandotherreceivables 9 2,931,167 2,161,435 1,307,559 407,243

Cashandcashequivalents 10 1,420,396 328,198 91,855 -

4,352,486 2,489,633 6,377,738 407,243

TOTALASSETS 28,373,375 25,142,647 36,476,489 31,110,331

ConsoLIdAted bALAnCe sheetGROUP COMPANY

Note(s) 2011R

2010R

2011R

2010R

ASSetS

Non-CurrentAssets

Property,plantandequipment 3 747,664 400,263 73,196 7,210

Goodwill 4 17,448,704 17,448,704 - -

Intangibleassets 5 5,586,445 4,520,661 - -

Investmentsinsubsidiaries 6 - - 30,000,000 30,000,000

Loanstogroupcompanies 7 - - - 677,688

Deferredtax 8 238,076 283,386 25,555 18,190

24,020,889 22,653,014 30,098,751 30,703,088

38

GROUP COMPANY

Note(s) 2011R

2010R

2011R

2010R

Revenue 21 27,703,937 25,583,662 3,146,331 2,047,670

Costofsales 22 (7,194,682) (2,466,166) - -

Grossprofit 20,509,255 23,117,496 3,146,331 2,047,670

Otherincome 60,853 - - -

Operatingexpenses (15,391,979) (19,065,617) (3,526,798) (3,987,560)

Operatingprofit/(loss) 23 5,178,129 4,051,879 (380,467) (1,939,890)

Investmentrevenue 24 57,100 3,404 237,146 3,813,602

Financecosts 25 (479,422) (396,657) (408,900) (20)

Profit/(loss)beforetaxation 4,755,807 3,658,626 (552,221) 1,873,692

Taxation 26 (1,449,341) (2,717,096) 7,364 (12,699)

Profit(loss)fortheperiod 3,306,466 941,530 (544,857) 1,860,993

Othercomprehensiveincome - - - -

TOTALCOMPREHENSIVELOSS/(INCOME)

3,306,466 941,530 (544,857) 1,860,993

Basicearningspershare 35 0.8365 0.2664

Dilutedearningspershare 35 0.7228 0.2294

ConsoLIdAted InCoMe stAteMent

39

Co

ns

oLI

dA

ted

stA

teM

en

t o

F C

hA

nG

es

In

eq

uIt

y

Sha

recap

ital

Sha

repremium

Equity

reserve

Totalsha

reca

pital

Sha

rebased

paymen

treserve

Retaine

dea

rnings

Totalequity

Gr

ou

PR

RR

RR

RR

Balan

ceat01

March

2009

3,500,002

34,000,000

(37,498,902)

1,100

517,163

13,719,347

14,237,610

Chang

esinequity

-

Profitfo

rtheyear

--

--

-941,530

941,530

Sharebased

payments

--

--

2,122,793

-2,122,793

Shareissueexpenses-sharebased

payment

--

--

-(89,569)

(89,569)

Issueofshares

307,999

2,331,957

-2,639,956

(2,639,956)

--

Dividends

--

--

-(4,029,351)

(4,029,351)

Transfershareissuecoststosharepremium

-(851,654)

-(851,654)

-231,390

(620,264)

TOTA

LCHANGES

307,999

1,480,303

(37,498,902)

1,788,302

(517,163)

(2,946,000)

(1,674,861)

Balan

ceat01

March

2010

3,808,001

35,480,303

(37,498,902)

1,789,402

-10,773,347

12,562,749

Chang

esinequity

-

Profitfo

rtheyear

--

--

-3,306,466

3,306,466

Issueofsharesintermsoftheinitial

pub

licoffering

569,999

5,130,001

-5,700,000

--

5,700,000

Transfershareissuecoststosharepremium

-(438,131)

-(438,131)

--

(438,131)

Treasurysharesheldbysubsidiary

(377,817)

(2,649,363)

-(3,027,180)

--

(3,027,180)

TOTA

LCHANGES

192,182

2,042,507

-2,234,689

-3,306,466

5,541,155

Balan

ceat28

Feb

ruary2011

4,000,183

37,522,810

(37,498,902)

4,024,091

-14,079,813

18,103,904

Notes

1111

1111

12

40

Co

ns

oLI

dA

ted

stA

teM

en

t o

F C

hA

nG

es

In

eq

uIt

y (

Co

ntIn

ued

)

Sha

recap

ital

Sha

repremium

Totalsha

reca

pital

Sha

rebased

paymen

treserve

Retaine

dea

rnings

Totalequity

RR

RR

RR

co

mPA

ny

Balan

ceat01

March

2009

3,500,002

34,000,000

37,500,002

517,163

(8,496,125)

29,521,040

Chang

esinequity

Issueofshares

307,999

2,331,957

2,639,956

(2,639,956)

--

Sharebased

payments

--

-2,122,793

-2,122,793

Shareissueexpenses-shareissuecosts

--

--

(89,569)

(89,569)

Transferofshareissuecoststosharepremium

-(851,654)

(851,654)

-231,390

(620,264)

Netincome(expenses)recog

niseddirectlyinequity

307,999

1,480,303

1,788,302

(517,163)

141,821

1,412,960

Profitfo

rtheyear

--

--

1,860,993

1,860,993

Totalrecog

nisedincomeandexpensesfortheyear

307,999

1,480,303

1,788,302

(517,163)

2,002,814

3,273,953

Dividends

--

--

(4,029,351)

(4,029,351)

Balan

ceat01

March

2010

3,808,001

35,480,303

39,288,304

-(10,522,662)

28,765,642

Chang

esinequity

Lossfo

rtheyear

--

--

(544,857)

(544,857)

Issueofshares

569,999

5,130,001

5,700,000

--

5,700,000

Transferofshareissuecoststosharepremium

-(438,131)

(438,131)

--

(438,131)

Balan

ceat28

Feb

ruary2011

4,378,000

40,172,173

44,550,173

-(11,067,519)

33,482,654

Notes

1111

1112

41

ConsoLIdAted CAsh FLoW stAteMent

Totalcashmovementfortheyear 1,473,257 1,600 407,432 (393,689)

Cashatthebeginningoftheyear (52,861) (54,461) (315,577) 78,112

Total cash at end of the year 10 1,420,396 (52,861) 91,855 (315,577)

Cashflowsfromfinancingactivities

Proceedsonshareissue 11 5,700,000 - 5,700,000 -

Proceedsfromotherfinancialliabilities - 1,485,382 - 1,697,203

Repaymentofotherfinancialliabilities (4,548,427) (64,745) (1,632,458) (64,745)

Proceedsfromshareholdersloan - 305,725 2,343,471 -

Repaymentofshareholdersloan (1,253,149) - - -

Financeleasepayments (92,958) (23,659) - -

Dividendspaid 30 - (4,029,351) - (4,029,351)

Net cash from financing activities (194,534) (2,326,648) 6,411,013 (2,396,893)

Cashflowsfrominvestingactivities

Purchaseofproperty,plantandequipment 3 (664,853) (247,058) (91,803) -

Saleofproperty,plantandequipment 3 85,353 - 10,290

Purchaseofotherintangibleassets 5 (1,451,918) (2,266,951) - -

Loansadvancedtogroupcompanies - - (4,300,636) (1,206,535)

Net cash from investing activities (2,031,418) (2,514,009) (4,382,149) (1,206,535)

GROUP COMPANY

Note(s) 2011R

2010R

2011R

2010R

Cashflowsfromoperatingactivities

Cashgeneratedfrom/(usedin)operations 28 5,743,923 7,654,327 (1,435,099) (587,533)

Interestincome 23 57,100 3,404 237,146 2

Dividendsreceived - - - 3,813,600

Financecosts 24 (479,422) (396,657) (408,900) (20)

Taxpaid 29 (1,622,392) (2,418,817) (14,579) (16,310)

Net cash from operating activities 3,699,209 4,842,257 (1,621,432) 3,209,739

42

ACCountInG PoLICIes

1. PreSentAtion of GrouP AnnuAl finAnciAl StAtementS

Thegroupa