M.S. Omar/um

8 June 2016

Joint Medical Holdings Limited

Attention: Mr Rafeek Nakooda

Dear Sir

RE: GUIDANCE NOTE ON CALCULATION OF ZAKAH ON JMH SHARES : RAMADAAN 2016

Basic Principles

1. The correct method of calculating Zakah in respect of the shares, owned by a Muslim shareholder, is based on the following Shariah principles:

1.1 ownership of a share in JMH represents a pro rata undivided share in the underlying assets of the company;

1.2 For that purpose, the shareholder must identify and determine the value of the underlying Zakaatable assets, after deducting relevant liabilities, at his or her Zakah valuation date, which is normally Ramadaan.

1.3 Gold, silver, cash, and receivables per se, are subject to Zakah under all circumstances. Any other asset, only constitutes a Zakaatable asset, if such asset was acquired with the primary intention, at the time of purchase, for the purposes of resale, and is therefore deemed to constitute trading stock.

Determination of Zakaatable Value

2. We have examined the consolidated management accounts of JMH as at 30th April 2016, and have determined the following, in consultation with the Group Accounting Services Manager, Mr Rafeek Nakooda:

ZAKAATABLE ASSETS

Less Relevant Liabilities:

Net Value of Zakaatable Assets as at 30 April 20161 R53 392 350

Zakaatable Value Per Share

3. The Zakaatable value per issued share is R0.17 determined as follows:

Net Zakaatable Value
total number of issued shares

R53 392 350
311 736 900

= R0.17 per share

Illustration

4. For example, if a shareholder owns 1 000 000 ordinary shares on his or her Zakah valuation date, then, the Zakah due and payable is calculated as follows:

Zakaatable Value - 1 000 000 shares x R0.17 = R170 000

- 2.5% of R170 000

= R4 250,00 (Zakah due and payable)

5. The aforegoing is subject to a qualification : if the shareholder acquired the shares in JMH with the primary intention, determined at time of acquisition, to resell the same at a profit, then, in such event, the shares so acquired would constitute trading stock in his or her hands. In such event, Zakah is due and payable on the market value of the shares on the Zakah valuation date. The recent over the counter trading price per share is estimated between R6,90 and R7,50, per share.

AND ALLAH KNOWS BEST

Yours Sincerely

M.S. OMAR

Specialist Corporate & Shariah Attorney

Website: www.msolaw.co.za

- See books “How To Calculate Your Zakah”

“The Rules of Zakah ”