Plastic Recycling Business Plan May 2015

2015

PLASTIC MANUFACTURING BUSINESS PLAN

Mr. Andre Visser

Project Owner

19/5/2015

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Contents 1. Introduction ............................................................................................................................................ 3

2. General Business and Contact Details .............................................................................................. 3

3. Executive Summary .............................................................................................................................. 3

4. The Company ........................................................................................................................................ 4

4.1 Core Business ................................................................................................................................... 4

4.1.1 Operating Model ............................................................................................................................ 4

4.1.2 Input Materials ............................................................................................................................... 4

4.2 The Shareholders.............................................................................................................................. 5

4.3 Vision .................................................................................................................................................. 5

4.4 Mission ............................................................................................................................................... 5

5. SWOT Analysis ..................................................................................................................................... 6

5.1 Strengths ............................................................................................................................................ 6

5.2 Weaknesses ...................................................................................................................................... 6

5.3 Opportunities ..................................................................................................................................... 6

5.4 Threats ............................................................................................................................................... 6

5.5 Keys to Success ................................................................................................................................ 6

6. Profile Target Market ............................................................................................................................ 6

6.1 Positioning.......................................................................................................................................... 7

7. Marketing Plan ...................................................................................................................................... 7

7.1 Price .................................................................................................................................................... 7

7.2 Promotion ........................................................................................................................................... 8

7.3 Product and Production.................................................................................................................... 8

7.4 HDPE, LDPE and PP Recycling ..................................................................................................... 8

8. Company Structure ............................................................................................................................... 8

8.1 Board Positions ................................................................................................................................. 8

8.2 Management Positions ..................................................................................................................... 8

8.3 Operations Positions......................................................................................................................... 9

8.4 Administration Positions ................................................................................................................... 9

9. Operational Plan ................................................................................................................................... 9

9.1 Corporate Governance ..................................................................................................................... 9

9.2 Business Principles ......................................................................................................................... 10

9.3 Business Values & Behaviours ..................................................................................................... 10

9.4 Record Keeping............................................................................................................................... 10

10. Financial Projections ....................................................................................................................... 10

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10.1 Financial Model Assumptions ........................................................................................................ 10

10.2 Forecast Sales Assumptions ......................................................................................................... 10

10.3 Capital Expenditure and Start-Up Capital .................................................................................... 11

10.4 Costs ................................................................................................................................................. 11

10.5 Cost of Sales / Purchases.............................................................................................................. 12

10.6 Overhead Expenses (Year 1) ................................................................................................................... 12

10.7 Depreciation ..................................................................................................................................... 12

10.8 Tax Considerations ......................................................................................................................... 12

10.9 Projected Financials ....................................................................................................................... 12

10.10 Projected Income Statement ..................................................................................................... 12

10.11 Projected Balance Sheet............................................................................................................ 13

11. Implementation Plan ....................................................................................................................... 13

11.1 Project Management ...................................................................................................................... 13

12. Conclusion ....................................................................................................................................... 15

Annexure A: Plastic Product Range .................................................................................................... 16

Annexure B: Expressions of Intent from Prospective Clients - Ready, Willing and Able to Acquire

Product ........................................................................................................................................... 17

Annexure C: Proposed Company Organogram ................................................................................. 21

Annexure D: Financial Projections ....................................................................................................... 22

Annexure E: Quotation for Plant & Machinery ................................................................................... 41

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1. Introduction This Business Plan has been prepared to present the viability of establishing a plastic manufacturing and recycling business in support of a total funding requirement of R12,000,000. Towards this end the business seeks to enter into a joint venture with an investor willing to commit to the total funding requirement. Sales targets set for the first year of operations is R18 million growing to R33 million in year five. Net funds generated in year one is projected at R3,300,000 and growing to R8,000,000 in year five.

2. General Business and Contact Details General

TO BE FINALISED IN COLLABORATION

WITH THE INVESTOR

Business Name

Registration Number

Physical address

Postal address

Email address

Business telephone number

Business fax number

Company tax number

VAT number

UIF number

Shareholders

Member

Identity Number

Cell Phone

Member

Identity Number

Cell Phone

Member

Identity Number

Cell Phone

Bookkeeping Services

Name of Service Provider

Contact Person

Address

Telephone / Fax Number

Cell phone Number

Email:

Business Banker

Bank

Branch

Account Name

Type of Account

3. Executive Summary

The growing utilisation of plastics in industrial and consumer applications, combined with increased

consumer awareness surrounding solid waste recycling, has led to an increased demand for

recycled plastic resins and products both locally and globally.One of the fastest growing types of

collected plastic materials for recycling is Polyethylene Terephthalate ("PET").

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South Africa currently caters for eighteen percent (18%) of its recycled plastic requirement – 82% is imported. Based on the aforementioned a significant gap continues to exist in the market for local suppliers to contribute toward South Africa’s ever increasing recycled plastic requirements.

This view is confirmed through efforts by institutions such as the Plastics Federation SA as well as the Department of Trade and Industry to stimulate growth in the recycled plastic sector.

The establishment of a plastic recycling business is proposed in the West Rand area at an investment cost of R12,000,000 with the proposed business breaking even in month 22. The

proposed business will generate a first year net income in excess of R3,000,000 growing to a third year net income in excess of R7 million. The proposed business seeks an investor with strong BEE

credentials to secure a 49% interest in the business in return for the total funding requirement of

R12,000,000. The funding will be staggered in line with the setup costs outlined in the projected financial statements.

4. The Company

The company will be a start-up to be registered with CIPRO, SARS and the Plastic Federation of

SA, respectively. The start-up name will be determined through the joint venture engagement. The start-up may be an existing vehicle - provided CIPRO records are amended to include the shareholders to the proposed business and that there are no existing impeachments at SARS, any

other requisite authorities and that there are no existing financial obligations.

4.1 Core Business The recycling business will primarily encompass the conversion of plastic that has already been shredded, washed, dried and densified (input material). The pelletizing range that the Company will focus on is PP 5; HDPE 2 and LDPE 4 – with further detail defined in Annexure A.

The new business will be registered with the Plastic Federation of South Africa and will also secure

a license in terms of the National Environmental Management: Waste Act, Act 59 of 2008.

4.1.1 Operating Model The business operating model will entail the sourcing of input material (used plastic commodities),

the processing thereof into pellets (according to client needs) and the sale of the pellets to

consumers of plastic resins (such as the pellets produced).

The input material will initially be sourced from a supplier that specialises in the recovery of plastics

fit for recycling. The recycling business will then pelletize the input plastic through extruders,

package them and then supply them to the plastic industry as pellets for final conversion into

plastic products.

Once the core business as defined above is set up and operational, further expansion will be

considered and will also take into consideration the recovery of plastics in-house (collection,

shredding, washing, drying and densifying).

The business production processes will be based on continuous evaluation and refinement in order

to minimise the carbon footprint associated with manufacturing processes.

The output material, plastic pellets, will be sold to clients who have already expressed interest in acquiring our end product.

4.1.2 Input Materials The main source of input material will be Remade Plastics based in Randfontein.There has already been principle discussions with Remade Plastics with a view that Remade Plastics will be the primary source of input material. It is not practice in the plastics recycling sector for suppliers of

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raw input material to provide written commitment. We are however, confident though that Remade Plastics will agree to a supply contract once the proposed recycling business is ready to be

commissioned so as to have input material available once the plant becomes operational. Remade Plastics is a large-scale supplier of input materials in the plastic industry with an extensive footprint

throughout South Africa. This relationship will provide leverage for the blueprint of the current proposed plastic recycling business to be replicated elsewhere in Gauteng and South Africa. Other

suppliers are available and will also be pursued to ensure that a stable supply of raw input material is always available.

Once the business reaches a production capacity of 100MT per month the Company will engage directly with independent collectors of input materials. These collectors of raw material are

individuals who scout and collect materials from retail business and waste management sites. The material will be sorted, weighed and paid for at more affordable rates than that acquired from

businesses such as Remade Plastic. This method of sourcing input material will ultimately see the Company generating viable incomes for approximately 175 individuals with whom long term supply

relationship can be established. Assuming that these 175 individuals support 3 dependents this method of sourcing input materials will provide a livelihood for 525 people in total.

4.2 The Shareholders The Investor, will be the 50% shareholder and details will be formalised in a Memorandum of

Agreement leading into the establishment of a Pty Ltd.

The remaining 50% shareholding will be allocated to Mr. André Visser ( who has been actively

involved in the Plastic Manufacturing Industry since 1976), Mr. Christoffel Johannes Theron and Mr.

Ryno Milco Hertz.

It is envisaged that the collective experience of the shareholders will provide a solid basis to

establish and manage the plastic recycling business as well as to operate it profitably.

The shareholding split will be negotiable based on the investor’s intent to ensure shareholding allocations to community groups, women groups, employees and in instances a funding institution. It is preferred that funding be sourced from an investor who does not have any dependence on third party institutions in order to expedite the commencement of this business opportunity.

4.3 Vision

The Company vision is to become the preferred supplier of pelletized product within the recycling

industry. To this end the business will progressively grow the upstream and downstream value

chain in the plastic recycling business. The vision aligns to the environmentally friendly business

model and commitment to responsible business management which focusses on sustainability and

ensuring, wherever possible, the containment of carbon footprint within the industry served.

4.4 Mission

The Company is dedicated to converting waste plastic materials utilising environmentally friendly

recycling and manufacturing methods.

The Company intends to make sufficient profit annually in order to self-finance expansion and

development in line with marketplace demands. The Company will also maintain a friendly and creative work environment, which respects diversity, new ideas and hard work.

The Company mission can therefore be regarded as twofold, firstly, its responsibility towards

shareholders in ensuring stable and sustainable financial growth and secondly to provide a sought after top quality recycled product.

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5. SWOT Analysis

The SWOT analysis provides an opportunity to examine the internal strengths and weaknesses

that the Company will need to take note of and address where necessary. It also allows for an

examination of the opportunities presented to the Company as well as potential threats.

The strengths, weaknesses, opportunities and threats can be summarized as follows:

5.1 Strengths

a) Educated and knowledgeable owners. b) Hands-on management, avoiding unnecessary and costly management fees. c) Customer service focused.

d) Market has been researched and target market customers have been identified. e) Letters of Intent obtained from prospective clients (refer to Annexure B) for 550MT product.

f) Competitive pricing. g) Existing networks of suppliers.

h) Existing networks of clients requiring pelletised products.

5.2 Weaknesses

a) Investment costs associated with a start-up business. b) Cash constraints to expand business.

c) Similar product and services being supplied to market by competitors.

5.3 Opportunities

a) A growing population of businesses willing to pay for a much needed and quality product with related support services.

b) Market gap for local producers of pelletised product - South Africa currently caters for eighteen percent (18%) of its recycled plastic requirement – 82% is imported.

c) Training select groups of PDI and retaining the best as permanent staff.

5.4 Threats

a) The possibility of an aggravated economic slump – global recessionary trends. b) Shortage of raw material(s).

c) The possibility of a dramatic increase in interest rates.

d) New competition and potential reaction of existing competitors.

To address the aforementioned weaknesses and threats, the Company will carefully monitor

acquisition of input material, client orders in terms of supply of end product and cash flows through proper planning and budgets. It will also capitalise on existing networks in terms of supply and demand. Furniture, equipment and vehicles will be replaced through the utilisation of reserves

created specifically for that purpose. Shareholders will also ensure proper Governance over finance and operations.

5.5 Keys to Success

The main keys to the success of the Company are:

a) Secure Supply - Contract for supply of post-consumer bottles / plastic and post-industrial

manufacturing waste for raw material feed stock. b) Stable and productive client relationships.

c) Management - management with extensive, broad-based, industry specific experience.

6. Profile Target Market

The target market identified embraces companies that use recycled pelletised polypropylene PP,

polyethylene HDPE and LDPE (high and low density polyethylene), such as Heavy mineral

Plastics and Bravo Flex. Mr. Visser has had extensive exposure to the recycled plastics market and as a result possesses extensive networks of client companies who would all compete for

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product from the Company. This network will be leveraged to ensure a stable demand side for the Company’s product.

PP is used to produce products such as diapers, pails, dishes, candy containers, and lab equipment.

HDPE is used in the manufacturing of shampoo and detergent bottles, milk jugs, cosmetics, motor oil, toys, sturdy shopping bags and is considered one of the safer plastics. HDPE is often opaque or cloudy. Some recycling centres can only handle clear No. 2 plastics, such as milk jugs,

but not coloured bottles. LDPE is used in shopping bags, six-pack rings, hard drive casings, CD and DVD cases, and some bottles.

6.1 Positioning

The Company will follow a competitor positioning strategy. Here the product positions itself as

better than its competitors. This positioning strategy would be a logical strategy to follow as all products and services that the business has to offer are those that already exist in the market.

The value here lies in the positioning of the company based on its attributes.

The Company will endeavour to position itself as the preferred, sought after provider of pelletised

product, staffed by skilled, well trained and knowledgeable employees focused on serving the customers’ needs. The envisaged quality of product and service offering will be unique. The competition in related markets is somewhat fierce and at times cut-throat. However, the ability to

provide a quality product and service that satisfies the customers’ needs would play an important part in capturing market share.

Expansion will be carefully planned and carried out in phases to ensure viability and avoid tying up

of capital unnecessarily. A strong emphasis will be placed on continued training and education of personnel to ensure the best service at all times and to allow for succession planning, resulting in

vacancies being filled from within. An acceptable human resources policy will be put into place to ensure happy and motivated staff.

Branding and promotion of the business will undoubtedly be the major impetus in the short to

medium term. Image is a fundamental necessity for success. Promotion through advertising in selected media, publications and magazines, attending and participating in expositions, use of brochures and electronic media must become a regular, well managed function.

Pricing and customer service will be closely monitored and reviewed to stay ahead of likely competitors and other new inspired business entrants into the market.

7. Marketing Plan

The Company’s marketing plan will focus on the business offering a constantly available and top quality product combined with professional service.

7.1 Price

Since the Company operates in an existing market, it will follow a market penetration approach – a competitive price will be set for the product and service, relative to its competitors.

The cost of its product and related services is based on existing research within the plastics industry in general and the catchment area where the business is to be located.

Pricing and customer service will be closely monitored and reviewed to stay ahead of likely competitors and potential new entrants into the market.

Although the selling price of extruded pellets produced could be set at R8,470/ton (R8,47 per kilogram), the selling price used in the projections is conservatively placed at R6,968/ton.

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7.2 Promotion

The Company will be promoted through:

1) Existing networks through marketing meetings. 2) Advertisements in selected publications.

3) Visits to businesses. 4) Word of mouth referrals. 5) ADreach Street Pole advertising.

6) Website, internet and e-mail.

7) Promote product offering on www.plastixportal.co.za

Ongoing developments and changing trends within the industry will always be considered and

taken into account.

The Company also intends, in time, to evaluate extending the business footprint and will also consider a franchise opportunity.

7.3 Product and Production

The Company intends to specialise in plastic recycling, extrusion, manufacturing and the supply of both recycled High Density Polyethylene (HDPE) and Low Density Polyethylene (LDPE) pellets

as well as Polypropylene (PP) pellets, packaged in 25 kilogram bags and 1 ton bulk loads.

An initial production capacity averaging 225MT during year one is planned and this will grow in the long term to an average yearly production capacity 300 tons during year five.

7.4 HDPE, LDPE and PP Recycling

The pellets are manufactured from pre- and post-consumer plastic waste, viz. plastic that has already been used for its designated purpose and discarded. Refer to Annexure A for further

information on products manufactured from recycled pellets.

8. Company Structure

The Company will have a staff complement of sixteen full time employees, spanning operations, administration and management. The proposed structure is as per the organogram listed in Annexure C.

People recommended for the all positions from Operations through to Board level are as follows –

8.1 Board Positions

Research & Business Development Project Owner Nominee

Operations Project Owner Nominee

Finance Investor Nominee

Shared Services Project Owner Nominee

Governance Investor Nominee

8.2 Management Positions

Research & Development Manager Project Owner Nominee

Operations Manager Project Owner Nominee

Finance Manager Project Owner Nominee

Administration Manager Investor Nominee

http://www.plastixportal.co.za/

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8.3 Operations Positions

Supervisor 1 Appointment by recruitment

Supervisor 2 Appointment by recruitment

Feeder 1 Appointment by recruitment

Feeder 2 Appointment by recruitment

Machine Minder 1 Appointment by recruitment




Packer 1 Appointment by recruitment




8.4 Administration Positions

Recruitment and appointment of all positions extending from Board through to Operations will be done in collaboration between the project owner and investor.

9. Operational Plan

The newly registered company will operate and trade under the duly registered name. The

Company is wholly owned and managed by shareholders who are joint partners in the business venture.

It is intended that sixteen permanent staff members be recruited to undertake the production and manufacturing as well as packaging of the extruded pellets. In addition, casual or contracted staff will be appointed from time to time to provide assistance where the need arises.

A strong emphasis will be placed on continued training and education of personnel, in order to ensure the best customer service at all times and to allow for succession planning, resulting in

vacancies being filled from within. An attractive salary structure, linked to an acceptable human resources policy will be put into place to ensure a happy and motivated staff. In addition, a

scheme for employee participation in the profits of the company will be adopted to create an environment of belonging by all employees.

9.1 Corporate Governance

The management team will be up-skilled in corporate governance principles applicable to the business and will fully understand the principle that the business is an entity separate to the

owners and that the cash and assets of the business are separate from the owners. This discipline will ensure good decision making, viability and sustainability.

Due cognisance will also be taken of the requirements of the Companies Act and other relevant legislation, including good corporate governance as outlined in the King Report. With the objective

of maintaining and increasing the value of the business and attaining the company’s vision, particular attention will be paid to financial management, risk management and human resources.

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9.2 Business Principles

The general principles recommended by King III and which the Company will subscribe to are –

1) Accountability 2) Anti-corruption

3) Ethical Behaviour 4) Participation 5) Respect for the rights of all stakeholders

6) Transparency

9.3 Business Values & Behaviours

The values which the business subscribes to are - 1) Integrity 2) Commitment

3) Accountability 4) Responsibility

5) Prudence

The behaviours which the business subscribes to are -

1) Reliability

2) Punctuality 3) Flexibility

4) Receptiveness

5) Transparency

6) Co-operation 7) Tolerance

9.4 Record Keeping

The shareholders and management of the business recognise the importance of this business

attribute. Management will be responsible to produce monthly business reports (MIS and management accounts) for the review of the Board in addition to normal legislative and accounting reporting requirements.

10. Financial Projections

10.1 Financial Model Assumptions

The high-level financial assumptions are highlighted below with detailed projected financial statements attached as Annexure D. A key point to note is that the financials are based on the Investor committing the start-up capital in lieu of the 51% controlling stake in the

business. Should this departure point require a change in position that will result in the business

having to secure a loan facility then the projected financial statements will have to be adjusted

accordingly to factor in the loan and its repayment with the necessary interest schedule.

10.2 Forecast Sales Assumptions

It is assumed that income will increase at 9% per annum with production starting at 100MT in month one growing to an average of 220MT later in year one and plateauing at 290MT from year

two onwards.

Although the selling price could potentially easily be R8,470/ton, the price used in the projections is conservatively placed at R6,968/ton1.

1 Selling price figures as illustrated in the projected financial statements for year one are as at January 2015.

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This cash flow lag is incorporated by conservatively assuming the supplier (creditors) is paid immediately, while the debtors (vendors) pay a little later (30-days). From a cash flow perspective this will make a significant positive difference towards the working capital requirement as reflected

below –

Debtors collection schedule Year 1 Year 2 Year 3

Current 0% 0% 0%

30 days 50% 50% 50%

60 days 0% 0% 0%

90 days 0% 0% 0%

120 days + 0% 0% 0%

50% 50% 50%

Creditors payment schedule Year 1 Year 2 Year 3

Current 100% 100% 100%

30 days 0% 0% 0%

60 days 0% 0% 0%

90 days 0% 0% 0%

120 days + 0% 0% 0%

100% 100% 100%

10.3 Capital Expenditure and Start-Up Capital

The following summarises the required capital and assumed capital to be placed into the venture:

Amount (R)

Plant machinery – two full lines (see Annexure E) 4,942,833

Truck 300,000

Forklift (x2) 180,000

Trailer 30,000

Company vehicles 300,000

Compressor 20,000

Office equipment & Computers 65,890

Total Capex Funding Requirement 5,838,723

Working Capital, deposits and raw material sock 3,589,925

Total Funding Requirement 12,000,000

Shareholders Capital 12,000,000

Long-term loan 0

Overdraft facility 0

A total funding requirement of R12,000,000 is assumed as adequate to successfully set up and

operate the business by 1st

June 2015.

10.4 Costs

It is assumed that costs will increase in a range of 9% to 25% for differential running expense items

(e.g. insurance and electricity) over a period of three years.

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10.5 Cost of Sales / Purchases

The average price of raw material is assumed to be R2,937/ton. In addition, for the sake of conservancy, from a cash flow perspective, the following creditor’s days have been assumed for

years 1, 2 & 3:

Year 1 Year 2 Year 3

Current 100% 100% 100%

30-days 0% 0% 0%

10.6 Overhead Expenses (Year 1)

1) Owners remuneration – R67,500 per month; 2) Salaries – R110,000 per month; 3) Wages – R122,640 per month 4) Electricity & water – R47,000 per month;

5) Bad Debts – 0.5% of turnover

6) Packaging & transport – R2,000 per month; and 7) Rent premises – R50,000 per month (plus R50,000 deposit upfront).

10.7 Depreciation

The assets were depreciated over their useful lifespan –using a straight-line method of depreciation (plant equipment and vehicles – 5 years; and office equipment & computers – 3

years).

10.8 Tax Considerations

A tax rate of 28% has been assumed. The operation will likely benefit from some concessions, and hence it is still likely that the rate of 28% will prove conservative.

10.9 Projected Financials

Refer to the Annexure D for details of all projected financials; including detailed monthly cash flow.

10.10 Projected Income Statement

The following is a summary of the projected income statement:

Income Statement Year 1 Year 2 Year 3

Total Income 19 783 545 27 497 372 29 972 135

Less: Cost of Sales 8 334 471 11 467 093 12 499 131

Gross Margin 11 449 074 16 030 279 17 473 004

Less: Expenses 6 286 025 6 077 343 6 837 819

Net Income before Interest and Taxation

5 163 049

9 952 936

10 635 185

Less: Interest paid 0 0 0

Net Income after Interest 5 163 049 9 952 936 10 635 185

Less: Tax 1 292 999 2 328 925 2 744 878

Net Income after Tax 3 324 856 6 616 504 7 058 259

Based on the above assumptions, the business will show an operating profit of R3,3 million in the first year and R7 million in year three, before interest and tax.

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10.11 Projected Balance Sheet

The following is a summary of the projected balance sheet:

Balance Sheet Year 1 Year 2 Year 3

CAPITAL EMPLOYED Retained Income – Beginning 0 3 324 856 9 941 360

Net income - For the Year 3 324 856 6 616 504 7 058 259

Loan Account 0 0 0

Shareholder's Interest 12 324 856 18 941 360 25 999 619

Long Term Liabilities - 3-year loan 0 0 0

TOTAL – CAPITAL EMPLOYED 12 324 856 18 941 360 25 999 619

EMPLOYMENT OF CAPITAL Fixed assets 5 558 942 0 0

Current Liabilities 1 292 999 2 573 085 2 744 878

Short term portion of long term liabilities:- Loans 0 0 0

Taxation 1 292 999 2 573 085 2 744 878

Creditors 0 0 0

Current Assets 18 194 672 26 187 974 28 544 891

Debtors 18 144 672 26 187 974 28 544 891

Stock 0 0 0

Bank – Current 0 0 0

Rental paid in advance 50 000 0 0

Net Current Assets/(Liabilities) 16 901 673 23 614 889 25 800 013

TOTAL – EMPLOYMENT OF CAPITAL 22 460 615 23 614 889 25 800 013

The positive cash flow shows that the company will not be challenged with any liquidity problem. If there are no further investments made, the business would have cash reserves of R25 million at the end of the third year of business - after provision for tax.

11. Implementation Plan

11.1 Project Management

The following project management milestone timeline details the primary actions required over the period June 2015 through to December 2015 in order to ensure the successful set up and

operations of the business.

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Project Management Milestone Timelines Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16

Finalise Business Plan Finalise Projected Financials Completed Final Agreements Registration with Plastic Federation of SA Registration of Company at CIPRO Registration with SARS (VAT) Registration with UIF Opening of Banking Facility Appointment of accountant Negotiate and finalise supplier (creditor) agreements Negotiate and finalise vendor (debtor) agreements Secure rental premises Connection of electricty & lights Installation of telecommunication lines Installation of IT networks Order plant machinery and equipment Acquisition of vehicles Acquisition of office equipment Staggered draw down of start-up capital Finalisation of security Finalisation of insurance cover Set-up of office Recruitment of management staff Recruitment of operational staff Recruitment of administrative staff Advertising and Marketing Delivery & Installation of plant machinery Pilot run of processing lines Production of sample end product Marketing of sample end product Opening launch Commission plant

It is envisaged that the business will commence operations on 15th

June 2015.

In order to realise the high level project management plan and achieve the stated milestones within the broad timeframes as set out above it is necessary to embed a project management discipline

with effect from June 2015 to December 2015.

This will require dedicated time and effort from Mr Andre Visser and key stakeholders. A provision

of R90,000 has been provided for and set aside within the running expenses under the expense item “Pre-opening expenses”. This will include a disbursement of R20,000 per month for

Mr Andre Visser payable from June 2015 to December 2015.

This provision accommodates all the activities necessary to set up the business - up to and including the commissioning of the plant into business as usual production. Without this provision

the business cannot come into existence.

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12. Conclusion

In addition to the economic turnaround expected later this year and during 2015 the project owner has considered the important issues relating to establishing the business and are confident that the

Company will enjoy a significant amount of support and be profitable, enabling repayment of the required loan within a period of not more than five years.

All matters pertaining to shareholding, financial structure towards meeting the start-up capital as well as the appointment of directors and management are as proposed by Mr Visser and subject

final negotiations and agreement with the investor(s).

Signed:

Mr André Visser

Date:

Signed:

Mr Christoffel Theron

Date:

Signed:

Mr Ryno Milco Hertz

Date:

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Annexure A: Plastic Product Range Plastics are generally classified by a categorisation system in the form of numbersand accompanying definitions that appear onplastic products. The initial pelletizing to be produced by the Company will cater for –

1) PP 5.

Polypropylene, or PP, is used in products such as diapers, pails, dishes, candy containers, and lab

equipment.

2) HDPE 2.

High-density polyethylene, or No. 2 HDPE, used in shampoo and detergent bottles, milk jugs, cosmetics, motor oil, toys, and sturdy shopping bags, is considered one of the safer plastics.

HDPE is often opaque or cloudy. Some recycling centres can only handle clear No. 2 plastics,

such as milk jugs, but not coloured bottles.

3) LDPE 4.

Low-density polyethylene, or No. 4 LDPE, is used in shopping bags, six-pack rings, hard drive casings, CD and DVD cases, and some bottles.

For information other plastics in the range include -

PET / PETE 1.

This is one of the common types of plastic polyethylene terephthalate (PET or PETE), commonly found in bottles of soda, juice, water, etc. PET is understood to be one of the least toxic forms of

plastic because DEHA, a chemical used in PET, is no longer listed by the EPA as carcinogen. Doctors advise against reusing disposable plastic water bottles not really because of the urban legend of cancer-causing chemicals leaching from water bottles left in hot cars but because they

are hard to clean and can trap bacteria.

V 3.

Polyvinyl chloride, or No. 3 PVC, is found in shower curtains, meat and cheese wrappers, three- ring binders, some bottles, plumbing pipes, and building materials.

PS 6.

Polystyrene, also known as Styrofoam, is used in disposable cups and take-out food containers, packing peanuts, trays, and egg cartons.

Other 7.

The No. 7 SPI code is generally a wild card marking plastics that don’t fall within the other six

categories. These include polycarbonate bottles, which are understood by scientists to wreak

havoc on human hormones by leaching bisphenol-A into hot beverages. As a result, polycarbonate baby bottles are losing favour with the public, and retailers including Toys R Us are starting to sell

more BPA-free bottles.

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Annexure B: Expressions of Intent from Prospective Clients - Ready,

Willing and Able to Acquire Product

Letters of Intent from plastic producers who will consume the pellets from the recycling process of

the company (i.e. PP 5; HDPE 2 and LDPE 4) have been received from -

1) Bravo Flexible Packaging (Pty) Ltd

2) Heavy Mineral Plastics

These letters of intents will consume the total monthly production over the first three years

of operations. This will allow ample flexibility for the company to secure additional product orders

to match planned expansions.

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Annexure C: Proposed Company Organogram

Annexure D: Financial Projections

Source Andre Visser

Client Name Plastic Manufacturing Business

Projection Period 1 May 2015 TO 30 April 2018

Last Financial Information Month Ending Number of Months Type of Enterprise Close Corporation [CC] Private Company [PTY (LTD)] X Partnership Sole Proprietor Assumptions Year 1 Year 2 Year 3 Company Tax Rate 28% 28% 28% Expected % increase in prices 0% 9% 9% Expected % increase in expenses 0% 9% 9% Interest rate on credit balances 0% 0% 0% Overdraft rate 10% 10% 10% Gross Profit % (Spelt out in "Sales" & "COS") 0% 0% 0% Debtors collection schedule Year 1 Year 2 Year 3 Current 0% 0% 0% 30 days 50% 50% 50% 60 days 0% 0% 0% 90 days 0% 0% 0% 120 days + 0% 0% 0% 50% 50% 50% Creditors payment schedule Year 1 Year 2 Year 3 Current 100% 100% 100% 30 days 0% 0% 0% 60 days 0% 0% 0% 90 days 0% 0% 0% 120 days + 0% 0% 0% 100% 100% 100%

Finance Requirements Loan

Amount

Interest

Rate

Period in

Months Instalment

Draw Down

in Months

Loan 1 R 0 0% 12 R 0 1

Loan 2 R 0 0% 24 R 0 1

Loan 3 R 0 0% 36 R 0 1

Loan 4 R 0 0% 48 R 0 1

Loan 5 R 0 0% 60 R 0 1

Loan 6 R 0 0% 36 R 0 1

R 0 R 0.00 Other Institutions Loan 1 R 0 0% 48 R 0 1

Loan 2 R 0 0% 60 R 0 1

R 0 R 0 Total R 0 R 0.00

*Please Note: Selling Price as indicated is based on the Pricing of December 2014. Current Pricing for Sales & Cost of Sales is 6% higher.

Owners Remuneration May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total

Research & Development 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000

Operations 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000

Finance 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000

Shared Services 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000

Governance 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 450,000

67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 810,000

Salaries May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total

Research & Business Development Manager 15,000 15,000 15,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 225,000

Operations Manager 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

Finance Manager 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

Administration Manager 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

105,000 105,000 105,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 1,305,000

Wages May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total

Administrator 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000

Supervisor 1 12,000 12,000 12,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 171,000

Supervisor 2 12,000 12,000 12,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 171,000

Machine Minder 1 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Machine Minder 2 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Machine Minder 3 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Machine Minder 4 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Feeder 1 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Feeder 2 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Packer 1 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Packer2 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Packer 3 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

Packer 4 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768

116,640 116,640 116,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 1,453,680

NOTE: 2IC not built into structure at this stage

1

EXPENSES YEAR 1 Client Name Plastic Manufacturing Business Projection Period 01 May 2015 TO 30 April 2016 Month May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total

Accounting Fees 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 39,600

Advertising 1,100 1,000 1,000 750 750 750 500 500 500 250 250 250 7,600

Bank Charges 2,625 1,976 1,981 2,055 2,060 2,060 2,059 2,059 2,059 2,058 2,058 2,058 25,108

Business Brokering Fee 800,000 0 0 0 0 0 0 0 0 0 0 0 800,000

Cleaning Materials 850 800 800 800 800 800 800 800 800 800 800 800 9,650

Commission 0 0 0 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 27,000

Computer Expenses 650 650 650 650 650 650 650 650 650 650 650 650 7,800

Consumables 550 550 550 550 550 550 550 550 550 550 550 550 6,600

Diesel / Fuel 9,800 9,800 10,000 11,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 136,600

Electricity & Water 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 564,000

General Expenses 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 25,200

Insurance 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 276,000

Legal Expenses 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 19,200

Motor Vehicle Expenses 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 66,000

Office Expenses 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 13,200

Owners Remuneration 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 594,000

Packaging & Transport 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Pension Fund 0 0 0 0 0 0 0 0 0 0 0 0 0

Postage 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Pre-opening expenses 90,000 0 0 0 0 0 0 0 0 0 0 0 90,000

Printing 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Refreshments 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Rent - Premises 100,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 650,000

Repairs & Maintenance 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Salaries 105,000 105,000 105,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 1,305,000

Security 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 13,200

Shareholders Loan 0 0 0

Skills Levies 0 0 0 0 0 0 0 0 0 0 0 0 0

Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0

Telephone 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400

Travel Expenses 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400

UIF (1% of Salaries & Wages 2,216 2,216 2,216 2,326 2,326 2,326 2,326 2,326 2,326 2,326 2,326 2,326 27,587

Wages 116,640 116,640 116,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 1,453,680

Total 1,374,381 433,582 433,787 448,721 449,726 449,726 449,475 449,475 449,475 449,224 449,224 449,224 6,286,025

2


Accounting Fees 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 43,164

Advertising 1,210 1,100 1,100 825 825 825 550 550 550 275 275 275 8,360

Bank Charges 2,039 2,039 2,049 2,038 2,038 2,138 2,037 2,037 2,047 2,035 2,035 2,135 24,667

Business Brokering Fee 0 0 0 0 0 0 0 0 0 0 0 0 0

Cleaning Materials 927 872 872 872 872 872 872 872 872 872 872 872 10,519

Commission 0 0 0 3,270 3,270 3,270 3,270 3,270 3,270 3,270 3,270 3,270 29,430


Consumables 600 600 600 600 600 600 600 600 600 600 600 600 7,194

Diesel / Fuel 10,682 10,682 10,900 11,990 13,080 13,080 13,080 13,080 13,080 13,080 13,080 13,080 148,894



Insurance 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 300,840

Legal Expenses 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 20,928


Office Expenses 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388



Pension Fund 0 0 0 0 0 0 0 0 0 0 0 0 0

Performance celebration 0 0 2,000 0 0 20,000 0 0 2,000 0 0 20,000 44,000

Postage 98,100 0 0 0 0 0 0 0 0 0 0 0 98,100

Printing 273 273 273 273 273 273 273 273 273 273 273 273 3,270

Refreshments 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 26,160

Rent - Premises 110,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 715,000


Salaries 115,500 115,500 115,500 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 1,435,500

Security 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388

Shareholders Loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Skills Levies 0 0 0 0 0 0 0 0 0 0 0 0 0

Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0

Telephone 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 28,776

Travel Expenses 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 28,776

UIF (1% of Salaries & Wages 1,122 572 572 572 572 572 572 572 572 572 572 572 7,412

Wages 128,304 128,304 128,304 134,904 134,904 134,904 134,904 134,904 134,904 134,904 134,904 134,904 1,599,048

Total 630,918 477,103 479,331 493,505 494,595 514,695 494,319 494,319 496,329 494,042 494,042 514,142 6,077,343

3


Accounting Fees 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 47,049

Advertising 1,331 1,210 1,210 908 908 908 605 605 605 303 303 303 9,196

Bank Charges 2,319 2,319 2,319 2,318 2,318 2,318 2,316 2,316 2,316 2,315 2,315 2,315 27,804

Business Brokering Fee 0 0 0 0 0 0 0 0 0 0 0 0 0

Cleaning Materials 1,010 950 950 950 950 950 950 950 950 950 950 950 11,465

Commission 0 0 0 3,564 3,564 3,564 3,564 3,564 3,564 3,564 3,564 3,564 32,079


Consumables 653 653 653 653 653 653 653 653 653 653 653 653 7,841

Diesel / Fuel 11,643 11,643 11,881 13,069 14,257 14,257 14,257 14,257 14,257 14,257 14,257 14,257 162,294



Insurance 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 327,916

Legal Expenses 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 22,812


Office Expenses 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 15,683



Pension Fund 0 0 0 0 0 0 0 0 0 0 0 0 0

Performance celebration 0 1 2 3 4 5 6 7 8 9 10 11 66

Postage 106,929 0 0 0 0 0 0 0 0 0 0 0 106,929

Printing 297 297 297 297 297 297 297 297 297 297 297 297 3,564

Refreshments 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 28,514

Rent - Premises 121,000 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 786,500


Salaries 132,825 132,825 132,825 139,150 139,150 139,150 139,150 139,150 139,150 139,150 139,150 139,150 1,650,825

Security 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 15,683

Shareholders Loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Skills Levies 0 0 0 0 0 0 0 0 0 0 0 0 0

Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0

Telephone 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 31,366

Travel Expenses 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 31,366

UIF (1% of Salaries & Wages 1,234 629 629 629 629 629 629 629 629 629 629 629 8,150

Wages 141,134 141,134 141,134 148,394 148,394 148,394 148,394 148,394 148,394 148,394 148,394 148,394 1,758,953

Total 709,722 541,509 541,747 559,782 560,971 560,972 560,669 560,670 560,671 560,368 560,369 560,370 6,837,819

4

Item Quantity Cost

Aesthetics 2,750

Kitchen - Crockery & Cutlery 24 2,750

Kitchen - Fridge 1 1,650

Kitchen - Kettle 1 275

Kitchen - Microwave 1 825

Managers Laptop 4 30,800

Meeting Room Chairs 8 2,200

Meeting Room Table 1 2,750

Printer - Scanner 1 1,650

Reception Chair 3 550

Reception Desk 1 1,320

Receptionist Laptop 1 5,500

Receptionist Telephone 1 1,320

Server - Computers 1 2,200

Visitors Coffee Table 1 1,100

Visitors Lounge Suite 1 8,250

65,890

5

Item Quantity Cost

Delivery Truck 1 300,000

Company vehicles 2 300,000

Forklift 1 90,000

Forklift 1 90,000

Delivery Trailer 1 30,000

Compressor 1 20,000

Plant Machinery 2 4,663,052

5,493,052

6

ASSEST & DEPRECIATION


Financial Year YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Projected Year End 30-Apr-16 30-Apr-17 30-Apr-18 30-Apr-19 30-Apr-20

TERM PERCENTAGE

Land & Buildings 0 1 0 0 0 0 0

Machinery & Vehicles 5 20% 5,493,052 0 0 0 0

Office Equipment & Computers 3 25% 65,890 0 0 0 0

Other Assets 5 20% 0 0 0 0 0

Other 0 0 0 0 0 0 0

5,558,942 0 0 0 0

Depreciation per annum

Land & Buildings 0 0 0 0 0

Machinery & Vehicles 1,098,610 1,098,610 1,098,610 1,098,610 1,098,610

Office Equipment & Computers 21,963 21,963 21,963 0 0

Other Assets 0 0 0 0 0

Other 0 0 0 0 0

CURRENT ASSETS 1,120,574 1,120,574 1,120,574 1,098,610 1,098,610

7

PROJECTED CASH FLOWS YEAR 1 Client Name Plastic Manufacturing Business Projection Period 01 May 2015 TO 30 April 2016 Month May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total

Sales ** 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 17,420,000

Cost of Sales (Purchases) ** 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 6,995,000

Gross Margin 417,000 500,400 542,100 625,500 834,000 834,000 1,251,000 1,292,700 1,334,400 1,376,100 1,417,800 850,680 10,425,000

Bank Opening Balance 9,000,000 2,058,677 2,125,494 2,233,807 2,410,585 2,794,859 3,179,133 3,980,657 4,823,882 5,708,806 6,635,682 7,604,258 Debtors 0 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,144,672

Cash Sales 0 0 0 0 0 0 0 0 0 0 0 0 0

Shareholders Contribution (Loan) 0 0 0 0 0 0 0 0 0 0 0 0 0

Contribution - Other Sources 0 0 0 0 0 0 0 0 0 0 0 0 0

Bank Finance 0 0 0 0 0 0 0 0 0 0 0 0 0

Other Finance 0 0 0 0 0 0 0 0 0 0 0 0 0

Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest Earned 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Receipts 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,841,472

Expenses 1,374,381 433,582 433,787 448,721 449,726 449,726 449,475 449,475 449,475 449,224 449,224 449,224 6,286,025

Creditors 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 7,565,792

Capital - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0

Capital - Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest - Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest - Overdraft 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest - Shareholders Loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Land & Buildings 0 0 0 0 0 0 0 0 0 0 0 0 0

Machinery & Vehicles 5,493,052 0 0 0 0 0 0 0 0 0 0 0 5,493,052

Office Equipment & Computers 65,890 0 0 0 0 0 0 0 0 0 0 0 65,890

Other Assets 0 0 0 0 0 0 0 0 0 0 0 0 0

Stock 325,000 0 0 0 0 0 0 0 0 0 0 0 325,000

Deposits Paid (1st Month Rent) 100,000 0 0 0 0 0 0 0 0 0 0 0 100,000

Taxation 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Payments 7,638,123 769,342 797,527 868,421 1,009,326 1,009,326 1,288,875 1,316,855 1,344,835 1,372,564 1,400,544 1,020,016 19,835,759

Surplus / Shortfall -6,941,323 66,818 108,313 176,779 384,274 384,274 801,525 843,225 884,925 926,876 968,576 401,456 8,005,713

Bank: Balance / OD Facility 2,058,677 2,125,494 2,233,807 2,410,585 2,794,859 3,179,133 3,980,657 4,823,882 5,708,806 6,635,682 7,604,258 8,005,713 8,005,713

**Please Note: Cost of Sales & Sales Pricing to be increased by 6%

8


Sales 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 24,638,569

Cost of Sales (Purchases) 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 9,893,616

Gross Margin 927,241 999,966 1,090,872 1,181,778 1,272,684 1,363,590 1,454,496 1,545,402 1,636,308 1,636,308 1,636,308 927,241 14,744,953

Bank Opening Balance 8,005,713 7,746,142 8,269,005 8,880,546 9,568,819 10,346,907 11,195,802 12,155,979 13,207,061 14,347,040 15,489,306 16,631,571 Debtors 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974

Cash Sales 0 0 0 0 0 0 0 0 0 0 0 0 0



Bank Finance 0 0 0 0 0 0 0 0 0 0 0 0 0

Other Finance 0 0 0 0 0 0 0 0 0 0 0 0 0

Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest Earned 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Receipts 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974

Expenses 630,918 477,103 479,331 493,505 494,595 514,695 494,319 494,319 496,329 494,042 494,042 514,142 6,077,343

Creditors 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 10,515,779

Capital - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0

Capital - Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest - Other 0 0 0 0 0 0 0 0 0 0 0 0 0



Land & Buildings 0 0 0 0 0 0 0 0 0 0 0 0 0

Machinery & Vehicles 549,305 0 0 0 0 0 0 0 0 0 0 0 549,305


Other Assets 0 0 0 0 0 0 0 0 0 0 0 0 0

Stock 0 0 0 0 0 0 0 0 0 0 0 0 0

Deposits Paid 0 0 0 0 0 0 0 0 0 0 0 0 0

Taxation 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Payments 1,808,975 1,148,064 1,211,288 1,286,459 1,348,545 1,429,641 1,470,262 1,531,258 1,594,265 1,591,978 1,591,978 1,136,306 17,149,017

Surplus / Shortfall -259,571 522,863 611,541 688,273 778,089 848,895 960,177 1,051,083 1,139,979 1,142,266 1,142,266 413,099 17,044,670


9


Sales 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 26,856,041

Cost of Sales (Purchases) 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 10,784,042

Gross Margin 1,010,693 1,089,963 1,189,050 1,288,138 1,387,226 1,486,313 1,585,401 1,684,488 1,783,576 1,783,576 1,783,576 1,010,693 16,071,999

Bank Opening Balance 17,044,670 16,789,747 17,338,201 17,985,505 18,713,861 19,540,115 20,465,456 21,490,188 22,614,007 23,836,912 25,060,119 26,283,326 Debtors 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891

Cash Sales 0 0 0 0 0 0 0 0 0 0 0 0 0



Bank Finance 0 0 0 0 0 0 0 0 0 0 0 0 0

Other Finance 0 0 0 0 0 0 0 0 0 0 0 0 0

Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest Earned 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Receipts 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891

Expenses 709,722 541,509 541,747 559,782 560,971 560,972 560,669 560,670 560,671 560,368 560,369 560,370 6,837,819

Creditors 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 11,462,200

Capital - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0

Capital - Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0

Interest - Other 0 0 0 0 0 0 0 0 0 0 0 0 0



Land & Buildings 0 0 0 0 0 0 0 0 0 0 0 0 0

Machinery & Vehicles 549,305 0 0 0 0 0 0 0 0 0 0 0 549,305


Other Assets 0 0 0 0 0 0 0 0 0 0 0 0 0

Stock 0 0 0 0 0 0 0 0 0 0 0 0 0

Deposits Paid 0 0 0 0 0 0 0 0 0 0 0 0 0

Taxation 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Payments 1,943,774 1,272,855 1,339,580 1,424,101 1,491,776 1,558,263 1,624,446 1,690,933 1,757,420 1,757,118 1,757,119 1,238,528 18,855,913

Surplus / Shortfall -254,923 548,454 647,303 728,356 826,254 925,341 1,024,732 1,123,819 1,222,905 1,223,208 1,223,207 450,323 26,733,649


10

SALES INCOME & COST OF SALES YEAR 1 Client Name Plastic Manufacturing Business Period 01 May 2015 TO 30 April 2016 Month Income / Unit May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total

TURNOVER

SALES VOLUME Recycled LDPE 6968 100 120 130 150 200 200 300 310 320 330 340 204 2704

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1. Sale of Primary Product Excludes VAT Recycled LDPE 6968 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,841,472

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,841,472

2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL TURNOVER 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,841,472

COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 2798 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 7,565,792

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 7,565,792


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL COST OF SALES 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 7,565,792

GROSS MARGIN 417,000 500,400 542,100 625,500 834,000 834,000 1,251,000 1,292,700 1,334,400 1,376,100 1,417,800 850,680 11,275,680

GROSS MARGIN AS % TURNOVER 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%

11

SALES INCOME & COST OF SALES YEAR 2

Client Name Plastic Manufacturing Business Period 01 May 2016 TO 31 April 2017 Month Income / Unit May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 Total

TURNOVER

SALES VOLUME Recycled LDPE 7595.12 204 220 240 260 280 300 320 340 360 360 360 204 3448

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1. Sale of Primary Product Excludes VAT Recycled LDPE 7595.12 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL TURNOVER 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974

COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 3,050 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 10,515,779

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 10,515,779


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL COST OF SALES 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 10,515,779

GROSS MARGIN 927,241 999,966 1,090,872 1,181,778 1,272,684 1,363,590 1,454,496 1,545,402 1,636,308 1,636,308 1,636,308 927,241 15,672,194


12

SALES INCOME & COST OF SALES YEAR 3 Client Name Plastic Manufacturing Business Period 01 May 2017 TO 30 April 2018 Month Income / Unit May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Total

TURNOVER

SALES VOLUME Recycled LDPE 8,279 204 220 240 260 280 300 320 340 360 360 360 204 3448

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1. Sale of Primary Product Excludes VAT Recycled LDPE 8,279 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL TURNOVER 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891

COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 3,324 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 11,462,200

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 11,462,200


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL COST OF SALES 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 11,462,200

GROSS MARGIN 1,010,693 1,089,963 1,189,050 1,288,138 1,387,226 1,486,313 1,585,401 1,684,488 1,783,576 1,783,576 1,783,576 1,010,693 17,082,692


13



TURNOVER


Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0


Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 1,840,847 1,985,228 2,165,703 2,346,178 2,526,653 2,707,129 2,887,604 3,068,079 3,248,554 3,248,554 3,248,554 1,840,847 31,113,932


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL TURNOVER 1,840,847 1,985,228 2,165,703 2,346,178 2,526,653 2,707,129 2,887,604 3,068,079 3,248,554 3,248,554 3,248,554 1,840,847 31,113,932

COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 3,623 739,192 797,168 869,638 942,108 1,014,578 1,087,047 1,159,517 1,231,987 1,304,457 1,304,457 1,304,457 739,192 12,493,797

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 739,192 797,168 869,638 942,108 1,014,578 1,087,047 1,159,517 1,231,987 1,304,457 1,304,457 1,304,457 739,192 12,493,797


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL COST OF SALES 739,192 797,168 869,638 942,108 1,014,578 1,087,047 1,159,517 1,231,987 1,304,457 1,304,457 1,304,457 739,192 12,493,797

GROSS MARGIN 1,101,655 1,188,060 1,296,065 1,404,070 1,512,076 1,620,081 1,728,087 1,836,092 1,944,098 1,944,098 1,944,098 1,101,655 18,620,134


14



TURNOVER


Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0


Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 2,006,524 2,163,898 2,360,616 2,557,334 2,754,052 2,950,770 3,147,488 3,344,206 3,540,924 3,540,924 3,540,924 2,006,524 33,914,185


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL TURNOVER 2,006,524 2,163,898 2,360,616 2,557,334 2,754,052 2,950,770 3,147,488 3,344,206 3,540,924 3,540,924 3,540,924 2,006,524 33,914,185

COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 3,950 805,719 868,913 947,905 1,026,897 1,105,889 1,184,882 1,263,874 1,342,866 1,421,858 1,421,858 1,421,858 805,719 13,618,239

Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 805,719 868,913 947,905 1,026,897 1,105,889 1,184,882 1,263,874 1,342,866 1,421,858 1,421,858 1,421,858 805,719 13,618,239


Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL COST OF SALES 805,719 868,913 947,905 1,026,897 1,105,889 1,184,882 1,263,874 1,342,866 1,421,858 1,421,858 1,421,858 805,719 13,618,239

GROSS MARGIN 1,200,804 1,294,985 1,412,711 1,530,437 1,648,163 1,765,889 1,883,615 2,001,340 2,119,066 2,119,066 2,119,066 1,200,804 20,295,946


INCOME STATEMENT


Period 01 May 2015 TO 30 April 2020



Number of Months 12 12 12 12 12

Average Sales per month 1,570,123 2,182,331 2,378,741 2,592,828 2,826,182

Breakeven Sales per month SALES 18,841,472 26,187,974 28,544,891 31,113,932 33,914,185

1. Sales of Primary Product 18,841,472 26,187,974 28,544,891 31,113,932 33,914,185

2. Sales of Other 0 0 0 0 0

3. Sales of Product 2 0 0 0 0 0

COST OF SALES 7,937,592 10,921,041 11,903,935 12,975,290 14,143,065

Stock - Opening 348,400 379,756 413,934 451,188 491,795

Purchaces 7,914,192 10,895,535 11,876,134 12,944,986 14,110,034

Stock - Closing -325,000 -354,250 -386,133 -420,884 -458,764

GROSS PROFIT 10,903,880 15,266,932 16,640,957 18,138,642 19,771,120

Interest Received 0 0 0 0 0

Gross Income 10,903,880 15,266,932 16,640,957 18,138,642 19,771,120

EXPENSES 6,286,025 6,077,343 6,837,819 7,586,470 8,424,663

Accounting Fees 39,600 43,164 47,049 51,283 55,899

Advertising 7,600 8,360 9,196 10,116 11,127

Bank Charges 25,108 24,667 27,804 30,306 33,034

Bookkeeping 800,000 0 0 0 0

Cleaning Materials 9,650 10,519 11,465 12,497 13,622

Commission 27,000 29,430 32,079 34,966 38,113

Computer Expenses 7,800 8,502 9,267 10,101 11,010

Consumables 6,600 7,194 7,841 8,547 9,316

Diesel / Fuel 136,600 148,894 162,294 176,901 192,822

Electricity & Water 564,000 654,240 758,918 910,702 1,092,842

General Expenses 25,200 27,468 29,940 32,635 35,572

Insurance 276,000 300,840 327,916 357,428 389,597

Legal Expenses 19,200 20,928 22,812 24,865 27,102

Motor Vehicle Expenses 66,000 72,600 79,860 87,846 96,631

Office Expenses 13,200 14,388 15,683 17,094 18,633

Owners Remuneration 594,000 653,400 816,750 914,760 1,024,531

Packaging & Transport 24,000 26,160 28,514 31,081 33,878

Pension Fund 0 0 0 0 0

Performance celebration 1,200 44,000 66 72 78

Postage 90,000 98,100 106,929 116,553 127,042

Printing 3,000 3,270 3,564 3,885 4,235

Refreshments 24,000 26,160 28,514 31,081 33,878

Rent - Premises 650,000 715,000 786,500 865,150 951,665

Repairs & Maintenance 24,000 26,160 28,514 31,081 33,878

Salaries 1,305,000 1,435,500 1,650,825 1,815,908 1,997,498

Security 13,200 14,388 15,683 17,094 18,633

Shareholders Loan 0 0 0 0 0

Skills Levies 0 0 0 0 0

Subscriptions 0 0 0 0 0

Telephone 26,400 28,776 31,366 34,189 37,266

Travel Expenses 26,400 28,776 31,366 34,189 37,266

UIF (1% of Salaries & Wages) 27,587 7,412 8,150 8,884 9,683

Wages 1,453,680 1,599,048 1,758,953 1,917,259 2,089,812

NET INCOME BEFORE INTEREST AND TAXATION 4,617,855 9,189,589 9,803,137 10,552,172 11,346,457

Interest - Bank 0 0 0 0 0

Interest - Other 0 0 0 0 0

Interest - Overdraft 0 0 0 0 0

Interest - Shareholders Loan 0 0 0 0 0

NET INCOME AFTER INTEREST 4,617,855 9,189,589 9,803,137 10,552,172 11,346,457

Taxation 1,292,999 2,573,085 2,744,878 2,954,608 3,177,008

Abnormal Items 0 0 0 0 0

NET INCOME 3,324,856 6,616,504 7,058,259 7,597,564 8,169,449

Depreciation 1,120,574 1,120,574 1,120,574 1,098,610 1,098,610

Funds Generated 3,324,856 6,616,504 7,058,259 7,597,564 8,169,449

Capital - Main Bank 0 0 0 0 0

Capital - Other 0 0 0 0 0

NET FUNDS GENERATED 3,324,856 6,616,504 7,058,259 7,597,564 8,169,449

GROSS PROFIT PERCENTAGE 72.00% 72.00% 72.00% 72.00% 72.00%

BALANCE SHEET Client Name Plastic Manufacturing Business

Period 01 May 2015 TO 30 April 2020



CAPITAL EMPLOYED

Share Capital 9,000,000 9,000,000 9,000,000 0 0

Retained Income - Beginning 0 3,324,856 9,941,360 0 0

Net Income for the year 3,324,856 6,616,504 7,058,259 0 0

Loan Account Shareholders Interest 12,324,856 18,941,360 25,999,619 0 0 Long Term Liabilities

Bank 0 0 0 0 0

Other 0 0 0 0 0

12,324,856 18,941,360 25,999,619 0 0

FIXED ASSETS 5,558,942 0 0 0 0

Land & Buildings 0 0 0 0 0

Equipment & Vehicles 5,493,052 0 0 0 0

Office Equipment & Computers 65,890 0 0 0 0

Other Assets 0 0 0 0 0

Other Investments 0 0 0 0 0

Deposits Paid 0 0 0 0 0

CURRENT LIABILITIES 1,292,999 2,573,085 2,744,878 0 0

Short term portion of long term liabilities Main Bank 0 0 0 0 0

Other 0 0 0 0 0

Associated Company Taxation 1,292,999 2,573,085 2,744,878 0 0

Creditors 0 0 0 0 0

Overdraft 0 0 0 0 0

Shareholders Loan 0 0 0 0 0

CURRENT ASSETS 18,194,672 26,187,974 28,544,891 0 0

Debtors 18,144,672 26,187,974 28,544,891 0 0

Rental paid in Advance 50,000 0 0 0 0

Stock 0 0 0 0 0

Associated Company 0 0 0 0 0

Bank - Current 0 0 0 0 0

Bank - Savings 0 0 0 0 0

Net Current Assets / (Liabilities) 16,901,673 23,614,889 25,800,013 0 0

22,460,615 23,614,889 25,800,013 0 0

1

Months to Break-Even 1 2 3 4 5 6 7 8 9 10 11 12

Total Turnover 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472

Less: Cost of Sales 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792

Less: Running Expenses 1,374,381 433,582 433,787 448,721 449,726 449,726 449,475 449,475 449,475 449,224 449,224 449,224

Net Income -957,381 66,818 108,313 176,779 384,274 384,274 801,525 843,225 884,925 926,876 968,576 401,456

Cumulative Net Income -957,381 -890,564 -782,251 -605,473 -221,199 163,075 964,599 1,807,824 2,692,748 3,619,624 4,588,200 4,989,655

Months to Break-Even 13 14 15 16 17 18 19 20 21 22 23 24

Total Turnover R 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404

Less: Cost of Sales R 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163

Less: Running Expenses R 630,918 477,103 479,331 493,505 494,595 514,695 494,319 494,319 496,329 494,042 494,042 514,142

Net Income R 296,323 522,863 611,541 688,273 778,089 848,895 960,177 1,051,083 1,139,979 1,142,266 1,142,266 413,099

Cumulative Net Income R 5,285,979 5,808,841 6,420,382 7,108,655 7,886,743 8,735,638 9,695,815 10,746,898 11,886,876 13,029,142 14,171,408 14,584,507

22 Months = Break Even against

R12,000,000 Start Up Cost

Annexure E: Quotation for Plant & Machinery

1

2

Documents

Plastic Recycling Business Plan May 2015