Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentCode Series 800 : Codes of Good Practice for Qualifying Small Enterprises (QSE’s)7. Statement 806 : Enterprise Development for QSE's7.1 The QSE Enterprise Development (ED) scorecard |
| 7.1.1) | In calculating the compliance of a Measured Entity the following Net Profit After Tax (NPAT) target applies unless: |
| 7.1.1.1) | the company does not make a profit last year or on average over the last five years. |
| 7.1.1.2) | the net profit margin is less than a quarter of the norm in the industry. |
| 7.1.2) | If the Turnover is to be used, the target will beset at: |
| • | 2% x Indicative Profit Margin (NPAT/Turnover) x Turnover. |
| • | Indicative profit margin is the profit margin in the last year where the company's profit margin is at least one quarter of the industry norm. |
| 7.1.3) | The following table represents the criteria and method used for deriving a score for approved projects and enterprise development under this statement: |
Criteria |
Weighting Points |
Compliance Target |
Average annual value of all Qualifying Contributions made by the Measured Entity as a percentage of the target |
25 |
2% of NPAT |