INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF AUSTRALIAN MARKETING INSTITUTE LIMITED Report on the Financial Report We have audited the accompanying financial report of Australian Marketing Institute Limited (the Company ), which comprises the statement of financial position as at 30 June 2016 and statement of profit or loss and other comprehensive income, statement of changes in funds and statement of cash flows for the year ended on that date, other selected explanatory notes and the directors declaration. Directors responsibility for the financial report The directors of the Company are responsible for the preparation of the financial report in accordance with Australian Accounting Standards Reduced Disclosure Requirements and the Corporations Act 2001. The directors responsibility also includes such internal control as the directors determine is necessary to enable the preparation of a financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with independence requirements of the Corporations Act 2001. M A Z A R S R I S K & A S S U R A N C E P T Y L I M I T E D A B N : 3 9 1 5 1 8 0 5 2 7 5 L E V E L 1 2, 9 0 A R T H U R S T R E E T, N O R T H S Y D N E Y N S W 2 0 6 0 P O B O X 1 9 9 4, N O R T H S Y D N E Y N S W 2 0 5 9 T E L : + 6 1 2 9 9 2 2 1 1 6 6 - F A X : + 6 1 2 9 9 2 2 2 0 4 4 E M A I L : E M A I L @ M A Z A R S. C O M. A U L I A B I L I T Y L I M I T E D B Y A S C H E M E, A P P R O V E D U N D E R T H E P R O F E S S I O N A L S T A N D A R D S L E G I S L A T I O N

INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF AUSTRALIAN MARKETING INSTITUTE LIMITED (CONT) Auditor s Opinion In our opinion the financial report of Australian Marketing Institute Limited, is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company s financial position as at 30 June 2016 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards Reduced Disclosure Requirements and the Corporations Regulations. Material uncertainty regarding continuation as a going concern Without qualification to our opinion, we draw attention to the matters set forth in Note 2 in the financial report. The Company incurred a net loss for the year of $168,186 (2015: Profit $149,299). The Company has net current liabilities of $781,526 (2015: $664,461) and a net liability of $718,575 (2015: $550,389) at financial year end. The company s ability to continue as a going concern is dependent upon the continued financial support of its lenders and the ability of the company to successfully execute its approved business strategy and generate sufficient operating cash flows. The generation of sufficient operating cash flows is dependent upon a number of critical assumptions and objectives built in to the business strategy and associated financial model. These include: - An increase in membership revenue of 20%over the 2017 financial year; - A reduction in administration and overhead costs, including employee costs of 12% over the 2017 financial year; - Continued financial support of existing lenders with repayments of loans as and when cash reserves permit; - No default in amounts due and payable to the company. M A Z A R S R I S K & A S S U R A N C E P T Y L I M I T E D A B N : 3 9 1 5 1 8 0 5 2 7 5 L E V E L 1 2, 9 0 A R T H U R S T R E E T, N O R T H S Y D N E Y N S W 2 0 6 0 P O B O X 1 9 9 4, N O R T H S Y D N E Y N S W 2 0 5 9 T E L : + 6 1 2 9 9 2 2 1 1 6 6 - F A X : + 6 1 2 9 9 2 2 2 0 4 4 E M A I L : E M A I L @ M A Z A R S. C O M. A U L I A B I L I T Y L I M I T E D B Y A S C H E M E, A P P R O V E D U N D E R T H E P R O F E S S I O N A L S T A N D A R D S L E G I S L A T I O N

INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF AUSTRALIAN MARKETING INSTITUTE LIMITED (CONT) Should: - the continued financial support provided throughout the financial year cease; and - the company not be able to successfully execute its business strategy as outlined in Note 2 of the financial report; and - the company not generate sufficient operating cash flows, including the realisation of the critical assumptions noted above; and - other matters as set forth in Note 2 not be realised, then a material uncertainty exists which may cast significant doubt about the company's ability to continue as a going concern and therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business. MAZARS RISK & ASSURANCE PTY LIMITED R. Megale Director Dated in Sydney, on this 26th day of September 2016 M A Z A R S R I S K & A S S U R A N C E P T Y L I M I T E D A B N : 3 9 1 5 1 8 0 5 2 7 5 L E V E L 1 2, 9 0 A R T H U R S T R E E T, N O R T H S Y D N E Y N S W 2 0 6 0 P O B O X 1 9 9 4, N O R T H S Y D N E Y N S W 2 0 5 9 T E L : + 6 1 2 9 9 2 2 1 1 6 6 - F A X : + 6 1 2 9 9 2 2 2 0 4 4 E M A I L : E M A I L @ M A Z A R S. C O M. A U L I A B I L I T Y L I M I T E D B Y A S C H E M E, A P P R O V E D U N D E R T H E P R O F E S S I O N A L S T A N D A R D S L E G I S L A T I O N