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$1.$ Contract with MediaTech $($Pty$)$ LtdDuring an executive meeting held on $15$ July $2019,$ it was decided that BioQuip should broaden its current customer base by means of advertising its products on social media. Given that the board is not familiar with advertising on social media, Mr Groenewald $($sales and marketing director$)$ agreed that he would source a company to provide the necessary expertise in this regard.At a board meeting held on $15$ September $2019,$ Mr Groenewald stated that he is extremely happy with the service received from MediaTech $($Pty$)$ Ltd $($MediaTech$),$ considering the significant capital investment made by BioQuip. Mr van der Schyff $($operations director$)$ enquired what the contract relates to as this is the first time that he was made aware of it$.$ Mr Groenewald explained that it relates to the implementation of sophisticated software, database management systems, servers and other hardware that enables BioQuip to track and provide a discount to clients for advertising BioQuip products on their social media pages, for example Facebook and Instagram. Existing clients would receive a discount based on the number of hits on social media sites directly related to their advertisement. The discount would be redeemable upon their next purchase. The last phase of the implementation has already started and should be completed by the end of September. Mr Groenewald said that it was only necessary to meet once with Mr Noel, the managing director of MediaTech, to discuss the few times that hackers stole sensitive client information by accessing the systems during the testing phases$\mathrm{.}2.$Contract with Hospicare LtdIn December $2019,$ BioQuip was approached by a Chinese company, Hospicare Ltd $($Hospicare$),$ to manufacture PPE given a recent viral outbreak experienced in that country. On $2$ January $2020,$ the chief executive officer of BioQuip, Mrs Smith signed a contract to provide PPE to Hospicare for a total amount of R$50$ million. Part of the terms and conditions were that Hospicare would pay $30\%$ of the total contract value upfront by $20$ January $2020$ in order for BioQuip to commence production.BioQuip would ship $30\%$ of the value of goods to Hospicare by $2$ February $2020.$ No credit checks were performed in respect of Hospicare.After signing the contract, BioQuip immediately started production. On $20$ January $2020,$ no funds had been received from Hospicare. Mr van der Schyff instructed staff to continue with the production and adhere to the shipping date as this is a client that they do not want to lose. The goods were shipped on $2$ February $2020.$ At the financial year end, no funds had been received and it was found that Hospicare had been declared bankrupt.As a result of the contract entered into with Hospicare, BioQuip stated that it expected a headline loss of R$12$ million for the year ended $30$ June $2020($from a profit of R$4$ million the previous year$).$Critically evaluate and discuss any non$-$compliance concerns and considerations in terms of the King IV Code on Corporate Governance and the IRBA Code of professional conduct with regard to the contracts of MediaTech $($Pty$)$ Ltd and Hospicare LtdMark guidelinePlease note that marks will only be awarded as follows $1.$ King IV Code on Corporate Governance. $2.$ IRBA Code of professional conduct

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