Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Services  Charter

Code Series FS600: The Measurement of the Enterprise Development and/or Empowerment Financing Element of Broad-Based Black Economic Empowerment

Statement 601: The Measurement of the Enterprise Development Element for Measured Entities that are exempted from contributing towards Empowerment Financing

2. The Enterprise Development Scorecard
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2.1The cumulative NPAT target applies unless:

 

2.1.1The company did not make a profit last year or on average over the last five years

 

2.1.2The net profit margin is less than a quarter of the norm in the industry

 

2.1.3If the Turnover is to be used, the target will be set at:

 

2.1.43% x Indicative Profit Margin (NPAT/Turnover) x Turnover

 

2.1.5Indicative 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.

 

2.2The following table represents the criteria and method used for deriving a score for Enterprise Development under this statement:

 

Criteria

Weighting Points

Target

Qualifying ED contributions made by the measured entity as a percentage of the target

15

3% of Cumulative NPAT