BROAD BASED BLACK ECONOMIC EMPOWERMENT VERIFICATION CERTIFICATE
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1 Head Office, Location: C/O Dodge & Chevrolet Street RANDFONTEIN BROAD BASED BLACK ECONOMIC EMPOWERMENT VERIFICATION CERTIFICATE Big Red Investments (Pty) Ltd B-BBEE CERTIFICATE NUMBER: QSE/10/02/2016/133 Registration Number: 2005/016662/07 VAT Number: Verification standard applied: Codes Of Good Practice Issue of the rating standard applied: Section 9 of the B-BBEE Act 53 of 2003 Scorecard applied: QSE Scorecard Transportation Sector Code Road Freight Sub-Section Size of the Enterprise: Qualifying Small Enterprise (<= R35 million annual turnover) ELEMENT WEIGHTING SCORE Ownership Preferential Procurement Enterprise Development Socio-Economic Development Overall Score Broad-Based BEE Status Level : Level 2 BEE procurement recognition level : 125% Black Ownership : 26,47% Black Woman Ownership : 0% Value Adding Supplier (Yes/No) : Yes In our opinion, the B-BBEE status reflected in this Certificate has been determined, in all material respects, in accordance with the codes of Good Practice on Black Economic empowerment gazetted on 9 February 2007 in terms of the Broad-Based Black Economic Empowerment Act of South-Africa. Our Independent reasonable assurance report dated 10 February 2016 is available for inspection at the registered office of Big Red Investments (Pty) Ltd together with the accompanying Scorecard and should be referred to for understanding of our assurance engagement. This Certificate has been determined, on the basis of information provided by management that may not be complete in all respects. We do not accept or assume responsibility to anyone other than Big Red Investments (Pty) Ltd for our work, for this report or for the conclusion we have reached. Per: M.C. De Klerk DE KLERK & VENNOTE B-BBEE Approved Registered Auditors Registered Auditors, IRBA no : B Date of issue: 10 February 2016 Expiry Date: 09 February 2017 Period of validity: 12 months
2 QUALIFYING SMALL ENTERPRISES SCORECARD TRANSPORTATION SECTOR, ROAD FREIGHT SUB-SECTION OF BIG RED INVESTMENTS (PTY) LTD Certificate Number : QSE/10/02/2016/133 DETAILS OF MEASURED ENTITY NAME: Big Red Investments (Pty) Ltd REGISTRATION NUMBER: 2005/016662/07 VAT REGISTRATION NUMBER: PHYSICAL ADDRESS (ES): C/O Dodge & Chevrolet Street RANDFONTEIN DATE OF VERIFICATION: 10 February 2016 EXPIRY DATE: 09 February 2017 This verification has been done in terms of the Code of Good Practice scorecard for QUALIFYING SMALL ENTERPRISE under the Transportation Sector Code, Road Freight Sub-Section. B-BBEE-STATUS OF MEASURED ENTITY The Measured Entity is a: LEVEL _2_ CONTRIBUTOR to Black Economic Empowerment in that a total score between 85 and 100 was achieved. The B-BBEE recognition level of the measured entity is 125% and IS a value added supplier and 26.47% Black Owned. OWNERSHIP: Ownership Weighting points Target Score Exercisable voting rights in hands of black people 6 25% + 1 Vote 6 Economic Interest of Black people in the Enterprise 9 25% 9 Realisation Points: Ownership fulfilment Net Value
3 Bonus Points: Involvement in the ownership of the Enterprise by Black Woman 2 10% 0 Bonus Points: Involvement in the ownership of the Enterprise by Black Participants in Employee Share Schemes, Co-operatives 1 10% 0 or Broad Based Ownership Schemes Ownership PREFERENTIAL PROCUREMENT: Indicator Weighting Target Total BEE Procurement Spend from all suppliers based on the BEE Procurement Recognition Levels as a percentage of Total Measured 25 40% 25 Procurement Spend PREFERENTIAL PROCUREMENT TOTAL ENTERPRISE DEVELOPMENT: Indicator Weighting Target Total BEE Procurement Spend from all suppliers based on the BEE Procurement Recognition Levels as a percentage of Total Measured 25 2% of NPAT 25 Procurement Spend ENTERPRISE DEVELOPMENT TOTAL SOCIO-ECONOMIC DEVELOPMENT: Socio-Economic Development Average annual value of all qualifying Contributions made by the Measured Entity measured from the commencement of this statement or the Inception Date to the date of measurement as a percentage of the target Weighting points 25 Target 1% of NPAT or Recalculated target Score Socio-Economic Development Total of 4 elements SIGNED AT PRETORIA ON THIS 10 TH. day of February MC De Klerk De Klerk & Vennote B-BBEE Approved Registered Auditor Chartered Accountants and Auditors (SA) Registered Auditors, IRBA no : B
4 10 February 2016 Big Red Investments (Pty) Ltd: QSE/10/02/2016/133 REASONABLE ASSURANCE REPORT OF THE INDEPENDENT B-BBEE APPROVED REGISTRED AUDITOR To the DIRECTORS of BIG RED INVESTMENTS (PTY) LTD We have undertaken a reasonable assurance engagement on the B-BBEE Status as at 10 February 2016 as set out on page 1 of the Broad-Based Black Economic Empowerment ( B-BBEE ) Verification Certificate (the Certificate ) of BIG RED INVESTMENTS (PTY) LTD, and the Scorecard as set out on pages 2 to 3 of the certificate. We clarify that our engagement is on the basis of information provided by management and may not be complete is all respects. DIRECTORS responsibility The DIRECTORS are responsible for the preparation of the Scorecard and determining the B-BBEE status in accordance with the Codes of Good Practice on Black Economic Empowerment ( the Codes of Good Practice ), gazetted on 9 February 2007 in terms of the Broad-Based Black Economic Empowerments Act of South-Africa ( the B- BBEE Act ). The DIRECTORS are also responsible for such internal control as management determines is necessary to enable the preparation of information and the B-BBEE Scorecard that is free from the material misstatement, whether due to fraud or error. B-BBEE approved registered auditors responsibility Our responsibility is to express a reasonable assurance conclusion on the B-BBEE Status reflected in the Certificate based on the procedures we have performed. We conducted our reasonable assurance engagement in accordance with the South-African Standard on Assurance Engagements (SASAE) 3002: Assurance Engagements on Broad Based Black Economic Empowerment B-BBEE (B-BBEE) Verification Certificates. This standard requires us to comply with ethical requirements and to plan and perform this engagement to obtain reasonable assurance about whether the certificate is free from material misstatement. A reasonable assurance engagement with respect to a B-BBEE Verification Certificate involves performing procedures regarding the Scorecard and B-BBEE Status of the measured entity based on the criteria and requirements contained in relevant Codes. The procedures performed depend on the assurance provider s judgement, including the assessment of the risks of material misstatements, whether due to fraud or error. In making those risk assessments we considered internal control relevant to the preparation of the Scorecard and the determination of the B-BBEE status. We believe that the evidence we have obtained in our reasonable assurance engagement is sufficient and appropriate to provide a basis for our conclusion.
5 Conclusion In our opinion, the B-BBEE status reflected in the Certificate has been determined, in all material respects, in accordance with the Codes of Good Practice on Black Economic Empowerment ( the Codes of Good Practice ), gazetted on 9 February 2007 in terms of the Broad-Based Black Economic Empowerment Act of South Africa ( the B-BBEE Act ). Restriction on Liability Our engagement has been undertaken so that we might report to the members in accordance with the terms of our engagement. We do not accept or assume responsibility to anyone other than the members for our work, for this report, or for the conclusion we have reached. MC De Klerk De Klerk & Vennote B-BBEE Approved Registered Auditor Chartered Accountants and Auditors (SA) Registered Auditors, IRBA no : B
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