PART 2

Print-It (Pty) Ltd is a manufacturer and retailer of printers with an average workforce of 150 factory workers, 20 administrative employees (including 5 individuals in its accounting department), and 10 cleaners. In the 2023 financial year, the company's turnover decreased to R180 million from R220 million in the previous year. The company has a debtors' book value of R52 million and thirdparty liabilities of R12 million. The only known beneficial interest holders of the company are its 7 shareholders.

Ink-R-Us (Pty) is a subsidiary of Print-It (Pty) Ltd and shares the same 7 shareholders. The company is owner-managed and has a staff of 8 employees. In the 2023 financial year, Ink-R-Us (Pty) Ltd had a turnover of R7.2 million. The company does not have any third-party liabilities, but it has assets held in a fiduciary capacity valued at R7.4 million. The financial statements of both companies are independently compiled.

YOU ARE REQUIRED TO:

(a) Calculate the public interest score for each company (show workings). (8)

(b) State, giving brief reasons, whether each of the companies will have to be audited or reviewed, or will require no external intervention. (4)

(c) What does it mean that Ink-R-Us (Pty) Ltd is owner-managed?