Ann: Update of Pending Judgment, page-45

I actuallythink the PWC angle will be very interesting having done IPOs and sat on a few Due Diligence Committees (DDCs),the Investigating Accountant Report (IAR) role is a lot more than getting numbersfrom management. They actually have to investigate and ensure there is substance, and they create a confidential report for the DDC that the independent directors definitely rely on in part (Directors duties still stand and they must do their own reasonable checks as well). For the IPO/DDCs I have done I can attest some of the deep dives I have seen and as a director it was comforting and when I was management it was painful ! I would be very worried if I was PWC that it may be in part at fault unless they can prove they :

1) Did the due investigation

2) Stress tested the informationprovided (and having been on the receiving end this is intense)

3) Had substantiation behind their IAR

Now converselyif management “clearly lied” and committed fraud by fabricating evidence that is adifferent thing, outside of that PWC have a role and would have got a nice amount of money for this. In my experience the IARs have actually requested to see the source information (contracts, invoices, orders, correspondence etc), I have never had PWC as an IAR but I assume they are like the other big 4. I have to say the IAR report and applicable DDC minutes would be fascinating, and I wish they would release that information, but I can’t see that happening outside of the court as it contains very sensitive commercial information.

FYI forthose who are bored and want to understand the items that are tested again itis covered by RG170 (and a few others things but this is the one to read). RegulatoryGuide RG 170 Prospective financial information (asic.gov.au)

Now all of the above implies that the Prospectus was misleading or wrong, which is a big legal if. If the prospectus at time of launch and close (yes both) was correct and issues were afterwards and not reasonably forecastable then no issue exists. (Yes before I get rocks thrown at me I did just add this line to cover myself)

Once again just my personal view, I am no expert at these things.