You are employed as the Audit Manager at Torbanite Auditors. Torbanite Auditors is the auditor of Ametis (Pty) Ltd. Ametis (Pty) Ltd wholesales Protective Personal Equipment (PPE). This year is the first financial year for which Torbanite Auditors has been appointed as auditors of Ametis (Pty) Ltd. Ametis (Pty) Ltd has 2 directors: Mr. Sapphire - the Chief Executive Officer Miss. Diamant - the Financial Director The following information has come to light with regards to Ametis (Pty) Ltd upon investigation: Matter 1: During the current financial year, the Financial Director signed a significant contract with her brother. According to the contract, Ametis (Pty) Ltd would purchase goods from Miss Diamant's brother for R5 000 000 in total. The fair value of these goods is R1 000 000 in total. Ametis (Pty) Ltd paid an amount of R5 000 000 to Miss Diamant's brother and received the goods in return. The goods were of inferior quality. Miss Diamant received a cash amount of R500 000 for successfully arbitraging the contract with Ametis (Pty) Ltd. Mr. Sapphire was not aware of the cash amount Miss Diamant received; however, he does know that Miss. Diamant had entered into many contracts in the past for which he had taken excessive levels of debt. The following are extracts from the annual financial statements as at 31 December 2021: ASSETS Total Non-Current Assets Total Current Assets LIABILITIES Total Non-Current Liabilities Total Current Liabilities R 7 000 000 1 000 000 8 000 000 5 000 000 4 000 000 9 000 000 Matter 2: Ametis (Pty) Ltd made several unauthorised payments for personal expenses and loans relating to Mr. Sapphire totalling an amount of R1 000 000. Matter 3: Due to the recent pandemic, the demand for PPE has increased exponentially. Itumeleng, Mr. Sapphire's son, would like to invest in Ametis (Pty) Ltd as he expects that Ametis (Pty) Ltd will receive many contracts to supply PPE in the next financial year. However, he requires financial support from Mr. Sapphire in order to purchase shares. Ametis (Pty) Ltd provided a loan to Itumeleng in order for him to purchase shares in Ametis (Pty) Ltd. Required: 4.1 4.2 With reference to matter 1, evaluate whether Ametis (Pty) Ltd is trading recklessly in terms of the requirements of the Companies Act. A reminder to first identify the applicable Act, state the requirements whereafter you apply the Act to the scenario provided. (12 marks) With reference to matter 2 in the above scenario, identify and discuss the applicable Companies Act Regulation. A reminder to first identify the applicable Act, state the requirements whereafter you apply the Act to the scenario provided. (12 marks) 4.3 With reference to matter 3, identify which section of the Companies Act the company would need to consider before providing financial assistance to Itumeleng and provide the requirements of the identified Act (5 marks)