9 Saint Davids Place, Parktown, 2193
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1 Complete and sign Pages 5-7 and fax or deliver to Transformex on the following contact details Transformex Contact Information Contact Person Rinda Philimon Telephone Number (011) /22 Fax Number Website Postal Address Postnet Suite 324 Private Bag X30500 Houghton 2041 Physical Address 3rd Floor Saint Davids Park, 9 Saint Davids Place, Parktown, 2193
2 1. INTRODUCTION 1.1 INFORMATION ON EMEs The latest BEE framework separates companies to different sizes to different BEE scorecards. Company Size Turnover Scorecard Compliance Large (Generic) > R50m Generic 5 elements Small Enterprise (QSE) > R10m < R50m QSE 5 elements Exempt-Micro-enterprise (EME) < R10m None No compliance Any enterprise with a total annual revenue of up to R10 million, qualifies as an Exempted Micro-Enterprise (EME). An EME is deemed to have a B-BBEE status of a level four contributor, with a B-BBEE recognition level of 100% An EME which is 100% black-owned is deemed a level one contributor with a B-BBEE recognition level of 135% An EME which is at least 51% Black Owned but less than 100% black-owned is deemed a level two contributor with a B-BBEE recognition level of 125%. An EME is required to obtain a sworn affidavit in the format produced by the Dti, an EME can however request an ownership certificate from a Sanas accredited verification agency, the certificate is an analysis of the entities ownership structure. BEE PROCUREMENT RECOGNITION LEVELS Contribution Level Qualification BEE Recognition Level One Contributor % Level Two Contributor 95 < % Level Three Contributor 90 < % Level Four Contributor 80 < % Level Five Contributor 75 < 80 80% Level Six Contributor 70 < 75 60% Level Seven Contributor 55 < 70 50% Level Eight Contributor 40 < 55 10% Non-Compliant Contributor < 40 0% 2
3 2. THE TRANSFORMEX EXEMPT MICRO-ENTERPRISE (EME) OWNERSHIP VERIFICATION A Transformex BEE Scorecard is an independent verification or audit of a company s BEE Ownership credentials. The company will receive a detailed certificate of BEE Ownership compliance. The BEE audit is based on the methodology and principles contained in the Codes of Good Practice on BEE released by the Department of Trade and Industry on 11 OCTOBER THE TRANSFORMEX EME VERIFICATION PROCESS Client Engages Transformex: Completes Request for Verification COR01-B and Agreement MAN01-B Client is Invoiced. Client pays 100% upon receipt of invoice Client returns signed Request and Agreement with supporting evidence as indicated on Request for verification Coordinator reviews evidence for compliance and send to Manager Verification Manager Certificate is sent to the Certificate valid for 1 1 Month prior to expiry reviews evidence and client Year Coordinator will contact provides final decision client for renewal and certificate The same procedure follows for renewal of certificate The estimated time for the verification is 2 days from date of receipt of all supporting documentation and full payment, however the verification can be done within 24 hours if urgent. 4. USE OF TRANSFORMEX LOGO AND CERTIFICATE An entity may only use the Transformex logo when referring to its verified BEE score after obtaining the written consent of Transformex and only once a final verification has been issued. The use of the Transformex name or logo must be followed by the actual verified BEE supplier status achieved by the entity, i.e. Transformex Level 4 BEE supplier. A certificate is valid for a period of one year. Should this validity period expire, the entity may not use the Transformex Logo until such time that a new certificate is issued by Transformex. 3
4 4.1 VERIFICATION FEES AND PAYMENTS EME verifications cost R Vat Inclusive, if paid by cash and extra R10.00 will be charged The verification is valid for 1 year (12 months). 4.2 PAYMENT TO TRANSFORMEX Please pay total fee of R VAT Inclusive into the Transformex bank account (see below for details) and fax deposit slip to Reference: Name of your entity. No verification process will commence without receipt of the proof of deposit and the signed request for verification, and verification agreement. An invoice will be sent to you with your verification certificate. 4.3 TRANSFORMEX BANKING DETAILS ACCOUNT: TRANSFORMEX CC BANK: NEDBANK BRANCH: CRESTA BRANCH CODE: ACCOUNT #: DOCUMENT REQUIREMENTS Companies Company Registration Documents + Share Certificates Shareholders List + Race + Gender + % equity owned Certified ID Documents of Shareholders Certified copy of your CM29 from CIPRO Dti EME Certified Affidavit (format produced by the Dti) Valid Tax Clearance Certificate Audited Financials/ Letter from auditor confirming turnover Proof of Payment Close Corporations Close corporation registration documents Certified ID Documents of Members Dti EME Certified Affidavit (format produced by the Dti) Valid Tax Clearance Certificate Audited Financials/ Letter from auditor confirming turnover Proof of Payment 4
5 Upon review of all documents and depending on the ownership structure, additional documents will be requested from the client. 5. THE REQUEST FOR VERIFICATION FORM AND DECLARATION Please complete the Request for Verification Form below and Fax to Transformex on THE BEE REQUEST FOR VERIFICATION SECTION 1: ENTITY AND FINANCIAL INFORMATION Registered Enterprise name Other Trading Names Type of entity (CC, Pty, Section 21, etc) Enterprise Registration number VAT Number SDL Number L Income Tax Number PAYE Number Entity Physical Address Entity Postal Address Telephone number Facsimile number address 5
6 Contact person 1 Designation Contact Person 2 Designation Size of enterprise Turnover < R10m per annum Micro X Industry Goods and services provided Total annual turnover Total annual payroll SECTION 2: DOCUMENT CHECKLIST Please complete this checklist and submit this with pages 5-7 as the cover sheet Have you completed and signed the Request for Verification and Verification Agreement? Yes No Have you paid and attached the deposit slip? Have you attached your company/cc registration documents? Have you attached applicable ownership documents, share certificates, share agreements Have you attached ID Documents of Shareholders and are they certified? Have you attached a Tax Clearance Certificate if applicable? 6
7 Have you attached the Dti Certified Affidavit SECTION 3: DESIGNATED SIGNATURE Type of Verification Requested EME Requested by: Name and Surname Designation in Entity Signature Date 5.2 DECLARATION I.. (Name of person) as..(designation in rated entity) of (Registered Name of Rated Entity) do hereby declare that: 1. I have the authority to engage Transformex to perform a BBBEE Ownership verification of the entity above; 2. The above entity is not a related body to Transformex CC and has no relationship that would compromise the impartiality or objectivity of the verification process. 3. The information provided to Transformex Ratings is true and accurate; 4. That the Transformex verification process will be observed and conformed to; 5. That only information provided will be taken into account for the verification process. 6. That 100% of fees will be paid on signing of this declaration and a deposit slip with all supporting documents will be sent to Transformex. 7. That Transformex has permission to submit the results of this verification process to the Department of Trade and Industry (DTI), the South African National Accreditation System (SANAS) and any other BEE verification regulatory body as may be deemed necessary from time to time, for the implementation of the BEE regulation. 8. That should Transformex find the information provided by the rated entity incorrect, Transformex may, in addition to other legal action: 7
8 a. Cancel the rating, while retaining any monies paid by the rated entity and Ensure that clients and potential users of the rating are made aware of the change to the rating status of the rated entity and also divulge to these parties, the reasons for the change. 9. I Agree, that should the client cancel the verification after the verification has been performed and prior to a final certificate being issued, 100% of the total price is retained by Transformex. If the verification is cancelled prior to any documentation being provided, the measured entity will be entitled to a full refund. This done and signed at on this the..day of For and behalf of the (Measured entity registered name).. Signature of designated authority.. Designation Signature: Designated Authority Position in Company Date 8
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