Master Mining Currency Essay

Question 1
1. Assumptions and Determinations
Master Mining Pty(Ltd) has a Turnover of R35,500,000.00 this makes it a Qualifying Small Enterprises(QSE), so the Ownership Scorecard to be used is that of a QSE.
In Defining the value of Master Mining Pty (Ltd), we will use the total issued shares multiply by the market value of the shares. = 120 * R1000.00 = R 120 000.00 which will translate to 100% of Master Mining Pty(Ltd): References 1& 2
Below are the assumptions, per Entity, that will enable us to calculate the Ownership:
a) Trust for Employees
15 shares/120 shares = 12.5 % so the Trust’s value is worth 12.5 % of Master Mining. As this trust was set up for employees, they qualify for designated group, and new entrants. As indicated that

For purposes of The shares were sold above market value, which will have an impact on Sale of assets, since the value of Asset sold is 50% higher than the market value. The Value of Asset for Company X is R30,000.00 whilst the market value, assuming that it was valued by an Independent Expert, is R 20,000.00. We assume that this transaction was not financed through a loan, but through actual equity that Company X held. We further assume that Company X is not a new entrant nor from a black designated group. For Company X we will use the Sale of Assets to determine the Net Value in the hands of black

=16.67% of MM is in the hands on Black People through the Company
To achieve the % ownership of black females in MM, we use the Flow through principle of
= % Black female Ownership in Company* % of Ownership by Company in MM
= 10% *16.67%
=1.67% of MM is in the hands on Black Females through the Company
Master Mining:
% Ownership of Blacks in the Master Mining = % Black Ownership Trust + % Nanny +% Black Ownership-Company X
= 7.14 + 8.33 + 16.67
% Black Voting Rights =32.14%
% Ownership of Blacks in the MM = % Black Female Ownership Trust + % Nanny +% Black Female Ownership-Company X
= 2.68 + 8.33 + 1.67
% Black Female Voting Rights =12.68%
Therefore:
Score for Voting Rights Black:= black Voting Rights/Target *Weighting
= (32.14/25)*5
=6.4, since the score is more than the weighting points, then we will only receive Weighting Points
Voting Rights Score = 5
Score for Voting Rights Black Females
Score for Voting Rights Black females := Black females Voting Rights/Target *Weighting
= (12.68/10)*2
=2.54 since the score is more than the weighting points, then we will only receive Weighting Points
Voting Rights- Black females Score = 2

Calculating Economic Interest (EI):
Trust:
Economic Interest = B/C