African Rail and Traction Services (Pty) Ltd Assignment

Assignment Task

Question 1 - OWNERSHIP

1. Under ownership there is no points for black people owning shares, why is this statement true.

2. What are the differences between QSE and Generic ownership score cards 

3. What is designated groups 

4. Explain what a new entrant is and how points are calculated 

Question 2 - OWNERSHIP

1. Using the flow-through principle, please calculate the percentage black ownership of Strat Co Parts.

2. Using your answer above, please calculate the points that the company will receive for voting rights and economic interest in score card format. Show calculation and score card

3. What option do you have with in this group because C is a Non-profit company and holds 25% in Max Profit Pty ltd. Company C beneficiaries base is 15% Black. Prove the following:

• Explain the options you have
• Calculate the points on each option 

All the Ownership of company D is 50% held by female that are under 30 years old. The Turnover of Strat Con Parts Pty is R 52 million for the year of assessment.

Question 3 

1. Use the flow-through principle to determine the percentage black ownership for each company (1 – 5 only). 

2. From your findings above, which companies may you apply the modified flow through principle to?

3. Please apply the modified flow through principles to the companies listed above and use this information to determine by showing all your options and selecting the best option to maximise the percentage black ownership of the measured entity. 

4. Using the information above, please calculate the points for voting rights and economic interest of black people only.

Question 4

A 100% Black owned company buyes 25 % of Jacks Properties Pty Ltd company for R 100 million. This is 45% funded by a mixture of vendor financing and third-party finance. At the time of acquisition Jacks Properties Pty Ltd was valuated at R 380 million.

On the 3rd year from the date of this transaction Jacks Properties Pty Ltd was valuated at R 450 million and the Black owned company still had 25% equity but there was only 20% still funded of there initial investment of R 100 million.

1. Calculate Net Value in year 1

2. Calculate Net Value in year 3

Question 5 

You have been approached by a new potential client from India African Rail Pty Ltd that has just won a tender with government to build a new railway road from Rustenburg to Durban. This project will be worth more than R50m.

1. Provide this client with an explanation on how they can take up the following option:

• If an organ of state hold 25% of African Rail Pty Ltd, how will their ownership score card look like 
• Provide this client with an explanation on how they can take up the option of a multinational operating in South Africa for their ownership in their BBBEE score card.
• Provide the African Rail Pty Ltd with the best possible BBBEE solution for ownership in setting up their operation in South Africa. 

This Businees Administration has been solved by our PhD Experts at My Uni Paper.