PPC ZIMBABWE

Capital Expenditure Policy

and required Documentation / Forms
Date 1-Aug-11

Exch rate 0.15

Brief Description

ADMIN CENTRE - X220 Lenovo Laptop

5 X Lenovo X220 Lenovo Laptop, 2 X T410 Laptop
Allocation
MD
CD
FD
Proc Manager
IT Manager
BISA T410
SBA T410
CAPITAL EXPENDITURE

Given the capital intensive nature of the Cement industry it is of vital importance to formalise uniform procedures and
controls for all new expenditure capital expenditure.

The purpose of this document is to provide guidance for the approval procedure surrounding new capital expenditure

DEFINITIONS

Capital

An item can be classified as "Property, Plant & equipment when:

1) It is held for use in production or supply of goods and services, for rental to others, or for administrative purposes
and
2) are expected to be used for more than one year
3) It is probable that future economic benefits associated with the asset will flow to the enterprise, and
4) The cost of the asset can be readily measured

Cost of an Asset

The cost of an asset comprises it's purchase price, including import duties and non refundable taxes (VAT on motor
vehicles being an example) and any directly attributable costs of bringing the asset to working condition.

Any item that fits the asset definition must be capitalised if the unit cost is R2000 or above.

Subsequent expenditure relating to existing assets (Capital vs Maintenance)

Expenditure to maintain or restore the intended future economic benefits must be expensed in the year it is incurred.
Expenditure relating to existing assets can only be recognised as an asset if it is probable that future economic
benefits in excess of the originally assessed standard of performance of the asset will flow to PPC. Examples of such
expenditure would be:
- Modifications that extend useful life
- Upgrades that will achieve substantial increase in quality of output and
- Change in process that will lead to substantial reduction in operating costs
Major components of assets may require replacement at regular intervals. These components have different useful
lives to the asset they are related. Replacement of such assets can be capitalised separately providing the replaced
asset is then fully written off. Riding ring replacements would fall into this category.

Depreciation

All assets to be depreciated over their estimated useful lives. Each new asset should be evaluated to determine it's
useful life, consideration should be given to similar assets in the same operation to provide consistency.
The maximum permitted useful life is 20 years with the exeption of kilns, mills, crushers and civil structures (including
warehouses) which can be extended to 30 years.
Special considerations:
- Estimated useful life can not extend beyond the time of a planned plant or production line closure
- Estimated useful life can not extend beyond the life of an inter dependant asset. A new motor/gearbox can't have a
longer life than the remaining life of the driven machine for example.
Depreciation should be commenced when the asset is brought in to use (SAP "Day of first use") regardless of
outstanding expenditure.
It is the responsibility of the vote applicant to inform the "site asset administrator" when an asset has been
commissioned.

APPROVAL

Approval of a new vote must be done using the standard form provided (Forms 1,2 & 3). Once the vote has been
finally approved a new asset must be opened on the relevant SAP asset register and a copy of forms 1, 2 & 3 must b
sent to the "central vote database administrator".

Authority levels depend on asset types and whether an item was approved in the annual PLAN or not.
Detail document of approved authority levels attached as "Annexure 1"

Part of the vote application procedure is the "Justification - form 2". The detail provided by the applicant is dependant
on:
- Essential for conducting business/routine asset replacement
- Approved in annual PLAN
- Quality of life/"nice to have"
- Expansion of current capacity
- Change in process
(list in order from least to most detail required)

Financial justification is only required for items that are not necessarily vital (can do without) and would generally fall
into the categories of expanded capacity, changes to current processes or where the choice between different
solutions are significant in cost and benefit.

Financial justification to be done utilising the CFROI calculation matrix provided in From 3. The basis/assumptions
used in determination of the input values to the CFROI calculation must be entered on Form2.

The notes on completion (Annexure 2) should be read together with this document to ensure correct completion of the
forms and accurate application of policy.

Supplementary and Sub Votes

Overruns on expenditure is permitted, but is limited to:

- 5% of the original approved value or
- R50000
whichever the lesser.

Any expenditure overruns in excess of the above requires a Supplementary Vote and must go through the normal
process again.

Vote closure

In the SAP assets system costs can always be added to a specific asset regardless of date of commission or vote
closure. It becomes the responsibility of the "asset administrator" at site level to ensure that no cost is added to an
asset subsequent to vote closure.

Vote closure thus merely becomes a mechanism whereby the Board/Executive/Site management can be assured tha
expenditure on a vote have ceased and control that expenditure was within the authorised limits approved.
Vote closure "Form 5" need only be completed for Votes where the "Project Nature" question in "Form 1" was "Yes".
This can be done even when expenditure on a vote is still outstanding, but should be restricted to retentions and
guarantees outstanding. Any outstanding expenditure should be indicated on the form itself.

Authorisation levels and procedures applies as for a new vote application. Once the vote closure has been finally
approved a copy of form 5 must be sent to the "central vote database administrator".

Asset Disposal and Scrapping

Form 6 must be completed and approved in the same way as for a new asset. Authorisation levels applies as for
"Unplanned expenditure" and based on the asset's historical cost.
If the asset was stolen, please attach a police report to the disposal form.

Reporting
Quarterly Board Report:
Show votes as open until all expenditure has ceased or when a vote closure form 5 has been authorised, whichever
comes first.
No items of value under R5000 needs to be reported on.

Monthly site Capex for management control

All votes with unspent balances from the prior year plus all current year expenditure to be recorded. The total of this
report should always be equal to "Total additions" reported for "Financial accounts" (cash spent during financial year)

Central vote database

The objective is to have a record of all approved votes

- All planned votes
- All approved votes
- All closed votes and final expenditure
- Site and asset numbers associated with a closed vote
- Copies of forms 1, 2 & 3 will be scanned and electronic copies kept (to be investigated)
lise uniform procedures and

ding new capital expenditure

or administrative purposes

nterprise, and

dable taxes (VAT on motor

rking condition.

sed in the year it is incurred.

e that future economic
w to PPC. Examples of such

nents have different useful

ately providing the replaced

evaluated to determine it's

de consistency.
nd civil structures (including

motor/gearbox can't have a

st use") regardless of

n asset has been

Once the vote has been

opy of forms 1, 2 & 3 must be

PLAN or not.

y the applicant is dependant

ut) and would generally fall

ice between different

3. The basis/assumptions
orm2.

sure correct completion of the

st go through the normal

ate of commission or vote

hat no cost is added to an

agement can be assured that

d limits approved.
stion in "Form 1" was "Yes".
tricted to retentions and
elf.

closure has been finally

ion levels applies as for

been authorised, whichever

e recorded. The total of this

spent during financial year).
PHL PROCEDURES

Action to be taken
·              All forms (Acq, Transfer, Disp) to be sent to the Works Secretary.
·              Works Secretary will maintain a register, and issue a registration number, marked on the d
·              Ref Number determined as follows -
CB / BF / AC First two letters determine originating centre
CX / SM / NW Second two letters determine budget status, i.e. Capex, Special Maint, or
BM / MD / IC Third two letter determine the CAPEX vote, i.e. Board vote, Managing Dire
A/T/D Fouth letter determines acq, transfer or disposal
999 Sequential number
EXAMPLE - "CB SM BM A 123", is a Colleen Bawn, Special Maint, Board Vote, Acquisition, number 1
·              Details recorded in the register - Ref Number, Date, Originator, Brief description, Capex or
·              Works Sec will forward to the A/Act who will record receipt in a separate register (Date, Re
·              MD / FD will authorise and return to A/Act.
·              The A/Act will issue a vote number (Excel register), matched with registration number, and
·              The A/Act will update the asset register accordingly.
·              SAP will give the A/Act an asset number which he/she will forward to the originator and Wo
·              The A/Act will forward to the Buying Dept the CAPEX form and the PR for Acquisitions. PR
·              The Buying dept will proceed to place the order, as detailed per the originating dept. This s
·              In SAP there are different asset classes; properties, computers, motor vehicles, furniture a
·              If we are purchasing complete assets like computers or vehicles, the asset will be created
·              As the PR is already linked to the asset, this will ensure that all costs associated with the a
·              The depreciation of complete assets is locked by the A/Act until the item has been received
·              If we are building up, constructing or creating an asset ourselves, then the initial asset will
·              Assets Under Construction costs are derived from the PR and orders.
·              Once an asset under construction is complete, the A/act will create a complete asset in the
·              The above process is called the capitalisation of an asset under construction.
·              The A/Act advises the Admin Manager/Financial Director on all vote closures.
·              Any excess expenditure is indicated for approval.
·              In all cases, once the asset begins to depreciate, the A/act will forward the asset number to
·              This will enable PHL to track the costs associated with maintaining each asset.
·              Cost centres are required on the forms in order for the depreciation to be charged to the co
on number, marked on the document.

e. Capex, Special Maint, or New item

. Board vote, Managing Directors vote, or

Vote, Acquisition, number 123.

Brief description, Capex or SM Budget or new item.
separate register (Date, Ref number), and forward to MD or FD for approval.

ith registration number, and notify Works Sec, who will record the vote number in the site register.

ard to the originator and Works secretaries in order for a purchase requisition to be raised.
the PR for Acquisitions. PRs are linked to the asset.
r the originating dept. This should be done without delay. Only in some cases will it will be necessary to re-evalua
, motor vehicles, furniture and fittings etc
s, the asset will be created in the appropriate asset class.
costs associated with the asset go to that specific asset
l the item has been received, fully invoiced and is in use.
es, then the initial asset will sit under a special asset class; Assets Under Construction

eate a complete asset in the appropriate class and transfer the costs to the new asset and open asset for depreci
r construction.
vote closures.

forward the asset number to the maintenance planners who will create equipment, functional locations and link to
ning each asset.
ation to be charged to the correct expence element once the asset is in use.
site register.

ill be necessary to re-evaluate quotes etc.

and open asset for depreciation

nctional locations and link to the asset number in SAP.

 PPC ZIMBABWE
Form 1
APPLICATION FOR AUTHORITY TO UNDERTAKE CAPITAL EXPENDITURE

OPERATION PORTLAND HOLDINGS Name of Record Capex Form 1

Edition/Version 3
Main vote number Budget reference Location and/or Owner Ass Acct

VOTE DETAILS AC-YR2011-17 Retention Period 7 years

DETAILED ASSET DESCRIPTION

(to allow identification & facilitate tax category 4X X220 Lenovo Laptop, 2X T410, 1XT420
decision)

DESCRIPTION TO BE ENTERED ON ASSET REGISTER 4X X220 Lenovo Laptop, 2X T410, 1XT20

(21 or 30 characters) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ /_ _ _ _ _ _ _

ASSET REGISTER NUMBER *If multiple assets or sub-components use form 4

LOCATION Admin Centre
COST CENTRE

SPEND STARTING DATE 10-Aug-11 EXPANSION

COMMISSIONING DATE 10-Aug-11 REPLACEMENT X
USEFUL LIFE / TAX WRITE-OFF PERIOD (Years) 5
EXPENDITURE
Vote closure
Amount requested - incl. VAT R 103,984.15 $15,779.13 required? Yes No
(depends on project
Less : VAT R 13,563.15 $2,058.15 nature) If yes, form 4 is to be used

Amount excluding VAT R 90,421.00 $13,720.98

Transport R 18,084.20 $2,744.20

Duty R 5,425.26 $823.26 FOREX Yes Indicative FEC Rate/s
Foreign currency contingency $1,728.84
Net amount to be capitalised R 113,930.46 $19,017.28 required ? No Indicative FEC Date/s
Previously approved (Supplementary vote only) Portion of total spend %
Total net amount R 113,930.46 $19,017.28 FOREX contingency incorporated R
Budgeted allowance Maximum FEC rate before reassessment
(Saving)/ over expenditure R 113,930.46 $19,017.28
Residual value
Net depreciable amount R 113,930.46 $19,017.28

SITE SIGNATURE NAME DATE

Originator Emmanuel Moyo

HOD F. Phaswana
IT Manager F. Phaswana
Finance Director I.D. Sheasby

PHL EXECUTIVE SIGNATURE NAME DATE

Executive Director

Financial Director

Managing Director

PPC EXECUTIVE SIGNATURE NAME DATE

Chief Financial Officer P Esterhuysen

Chief Executive Officer P Stuiver

Authorisation PPC Board PPC PPC PHL PHL MD PHL Fin Legal Exec GM & HOD
All values exclude VAT if deductible required by: resolution CEO CFO Board Director Dept Director AM
1 CAPEX (excluding property and motor vehicles)
Capital vote required. If over-run exceeds $60,000.00 , supplementary vote required to be authorised (at level of BOTH votes combined)
- value up to $10,000.00 - ### - - - - - - - Y Y
- value between $10,000.00 and $20,000.00 - ### - - - - - - Y Y Y
- value between $20,000.00 and $50,000.00 - ### - - - - Y - Y Y Y
- value between $50,000.00 and $100,000.00 - ### - - - Y Y - Y Y Y
- value between $100,000.00 and $500,000.00 - - - Y Y Y - Y Y Y
- value between $500,000.00 and $1,000,000.00 - - Y Y Y Y - Y Y Y
- value between $1,000,000.00 and $2,000,000.00 - Y Y Y Y Y - Y Y Y
- value in excess of $2,000,000.00 Y Y Y Y Y Y Y Y Y Y
Additional requirements for acquisition under instalment sale (hire purchase), long-term rental or lease agreement:
Capital amount of the asset plus any capitalised finance charges to be specified in a capex application and used to determine authority level.
Comparison of costs to outright purchase to be included with the capex application together with motivations as to the preferred financing method.
The agreement is to be signed by Executive, Finance and other executives/directors prior to the order being placed.

Unbudgeted CAPEX
There should be no unbudgeted CAPEX. All Unbudgeted CAPEX should go through the PHL FD and MD.

Additional requirements for computer hardware/software & tech.office equip such as switchboard, security/access control, time-recording, etc:
(Plant control equipment is excluded from this unless it impacts on the LAN):
- value up to $5,000.00 Approval of responsible IS MGR/IS Head at site
- value up to $5,000.00 and $10,000.00 Approval of GM/IT
- value in excess of $10,000.00 Approval of CFO

2 PURCHASE OF MOTOR VEHICLES

- value up to $5,000.00 - - - - - - - Y Y
- value from $5,000.00 and $10,000.00 - - - - Y - Y Y Y
- value from $10,000.00 and $20,000.00 - - - - Y Y - Y Y Y
- value in excess of $20,000.00 - - - Y Y Y - Y Y Y

Finance acquisitions or long-term rental: requirements noted in #1 apply

3 FIXED PROPERTY
All purchases & disposals Y Y Y Y Y Y Y Y Y Y
Replacement model complies withh PPC Standards
Replacement Model compliant with Requirements for
Riverbed implementation
Router to be replaced technically vulnerable as there are no
IOS updates
Replacement model meets requirements for migration to
office 2010

JUSTIFICATION Form 2

OPERATION PORTLAND HOLDINGS Name of Record Capex Form 2

Edition/Version 3

Main vote number Budget reference Locationand/or Owner Ass Acct

Retention Period 7 years

- AC-YR2011-17
Detail provided is dependant on:
- Whether the asset is essential for conducting business/routine asset replacement

- Quality of life/"nice to have"

#NAME?

- Change in process

GENERAL / TECHNICAL JUSTIFICATION

General Justification

1. Laptops nearing their useful life

2. Replaced as per five year plan
4. Becomming difficult to maintain

Technical Justification

4. The current operating not completely optmized for the new environment
5. The current disk capacities need to be updated

Financial Justification

1. These were budgeted for as per IT Budget

USEFUL LIFE
Remaining useful life of production unit / line 5

FINANCIAL JUSTIFICATION (Where necessary)

Financial justification by IRR/NPV (Form 2A/ 2B) is only required for items that are not necessarily vital (can do without) and would generally fall into the categories of expanded capacity, changes to current
processes or where the alternatives differ significantly in cost and benefit.
Assumptions used in preparation of IRR & NPV analysis on Form 2A & 2B:
N/A

Conclusion

FOR REPLACEMENT:
DETAILS OF EXISTING ASSET BEING REPLACED

Disposal (including trade-in), scrap or transfer? Yes No N/A

If yes complete form 5 or 6 (to be attached to the vote application for authorisation).
Asset reference number

Date acquired

Original cost

Net book value

Net tax value

Description:
 Form 2A

FINANCIAL JUSTIFICATION - 1. IRR

(NOT REQUIRED UNLESS EXPENDITURE REQUIRES TO BE JUSTIFIED FINANCIALLY)

OPERATION PORTLAND HOLDINGS Name of Record

Edition/Version
Main vote number Budget reference Locationand/or Owner
Retention Period
- AC-YR2011-17

All cash flows to be entered in current day terms (no

Measure 1 = IRR inflation increase in future years)

3 Drivers required
Increased after tax cash flow -
Input in GREEN AREAS ONLY
Replacement value of depreciating assets -
Life of assets in years -

Cash flow Calculation Annual cash flow

Year 1 2 3 4 5
Simple calculation of CFROI Increased cash flow (pre tax) - - - -
IRR Err:523
Increased Wear & Tear (Tax allowance) - - - - -
Annual Cash flow
Outflow Year 0 - Tax - - - -
Year 1 -
Year 2 - Increased after tax cash flow - - - - -
Year 3 -
Year 4 -
Year 5 - -1.00 Check Zero Tax write off basis
Year 6 -
Year 7 -
Year 8 - Check Zero - - - - - -
Year 9 -
Year 10 -
Year 11 - Cash flow assumptions and elements
Year 12 - Item 1
Year 13 - Description…
Year 14 - Item 2
Year 15 -
Year 16 -
Year 17 -
Year 18 -
Year 19 -
Year 20 -
Year 21 -
Year 22 -
Year 23 -
Year 24 -
Year 25 -
Year 26 -
 Form 2B

FINANCIAL JUSTIFICATION - 2. NPV

(NOT REQUIRED UNLESS EXPENDITURE REQUIRES TO BE JUSTIFIED FINANCIALLY)

OPERATION PORTLAND HOLDINGS Name of Record Capex Form 2B

Edition/Version 3
Main vote number Budget reference Locationand/or Owner Ass Acct
Retention Period 7 years
- AC-YR2011-17

NPV R - NEGATIVE - DON'T PURSUE!

After tax rate 8.00% Holt (after tax, real)

Capex (outlay) / Tax Cash
NDA allowance savings Cash tax effect
End of A tax Cash NPV factor Annual NPV Cash flow calculation Annual cash flow
Year 0 - - - Year 1 2 3 4 5 6 7 8 9
1 - - - 0.93 - Increased cash flow (pre tax) - - - - - - - - -
2 - - - - 0.86 -
3 - - - - 0.79 - Increased wear & tear (Tax allowance) - - - - - - - - -
4 - - - - 0.74 -
5 - - - - 0.68 - Tax - - - - - - - - -
6 - - - - 0.63 -
7 - - - - 0.58 - Increased after tax cash flow - - - - - - - - -
8 - - - - 0.54 -
9 - - - - 0.50 -
10 - - - - 0.46 - -1.00 Check Zero Tax write-off basis 0% 0% 0% 0% 0% 0% 0% 0% 0%
11 - - - - 0.43 -
12 - - - - 0.40 -
13 - - - - 0.37 -
14 - - - - 0.34 -
15 - - - - 0.32 -
16 - - - - 0.29 -
17 - - - - 0.27 -
18 - - - - 0.25 -
19 - - - - 0.23 -
20 - - - - 0.21 -
21 - - - - 0.20 -
22 - - - - 0.18 -
23 - - - - 0.17 -
24 - - - - 0.16 -
25 - - - - 0.15 -
26 - - 0.14 -
Project NPV -

0.00
Check Zero
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
- - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - -

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
 PORTLAND HOLDINGS
ANALYSIS OF MAIN VOTES INTO SUB-VOTES Form 3

MAIN VOTE DESCRIPTION

X220 Lenovo Laptop

FORM SUB-VOTE DESCRIPTION AMOUNT FOREIGN CURRENCY

(excl VAT) CURRENCY
QTY EXPOSURE (%)
4.00 X220 Laptop (FD,ITM,CD,MD) ZAR 38,200.00 ZAR 9,550.00
4.00 Dasher and comet Ultrabase ZAR 4,636.00 ZAR 1,159.00
1.00 Targus carry bag ZAR 415.00 ZAR 415.00
4.00 X200 9 cell Li-Ion Battery ZAR 3,400.00 ZAR 850.00
5.00 DVD Burner ZAR 2,070.00 ZAR 414.00
5.00 Samsung 19" ZAR 8,000.00 ZAR 1,600.00
2.00 T410 Laptops (BISA,SBA) ZAR 19,640.00 ZAR 9,820.00
2.00 Targus Carry Bag for this model - Backpack ZAR 1,000.00 ZAR 500.00
2.00 ThinkPad 90W AC Adapter ZAR 660.00 ZAR 330.00
2.00 Lenovo L2251P 19" TFT LCD ZAR 3,200.00 ZAR 1,600.00
1.00 T420 Laptop (Materials Manger) ZAR 8,000.00 ZAR 8,000.00
1.00 ThinkPad Battery 55++ (9 cell) ZAR 1,200.00 ZAR 1,200.00

Sub-Total ZAR 90,421.00

ESCALATION
CONTINGENCY

Total of main vote ZAR 90,421.00

VAT at 15% ZAR 13,563.15
Net Capex amount including VAT ZAR 103,984.15

Name of Record Capex Form 3

Edition/Version 3
Locationand/or Owner Ass Acct
Retention Period 7 years
 PORTLAND HOLDINGS
Form 3.1, etc.
COMPARISON OF TENDERS AND JUSTIFICATION OF CHOICE OF
SUPPLIERS/TYPE OF EQUIPMENT

SUB-VOTE DESCRIPTION: ....................................

X220 Laptop (FD,ITM,CD,MD)

Reference 1 2 3 4
Supplier name

Tender price validity expiry date

Price per quote (excluding VAT)
Fixed (Y/N)
Escalation clauses

Trade discount (%)

Settlement discount
- Days
-%
VAT amount $0.00 $0.00 $0.00 $0.00
Other charges:

Total other charges $0.00 $0.00 $0.00 $0.00

TOTAL $0.00 $0.00 $0.00 $0.00
Portion affected by foreign currency movement? (%)
Other comments:
(Other contract price adjustments, guarantees etc.)

Technical selection
Tender recommended (Y/N)

Reasons for recommendation.

Signed : (Originator) Date :

 PORTLAND HOLDINGS Form 4
COMPONENT SPLIT* OF CAPITAL VOTE & VOTE CLOSURE

OPERATION PORTLAND HOLDINGS Name of Record Capex Form 4

Edition/Version 3
Main vote number Budget reference Locationand/or Owner Ass Acct
Retention Period 7 years
- AC-YR2011-17

Description to be entered on asset register Commiss. Net depreciable Final value for Asset
Component # Start date Useful life Tax life Exp/Repl Value Residual value
(21 or 30 characters)** date amount vote closure register #

4 X220 Base Unit IT 5700 MHD i5-250M AMT ZAR 9,550.00 ZAR 38,200.00
4 Dasher and Comet Ultrabase ZAR 1,159.00 ZAR 4,636.00
1 Targus carry bag ZAR 415.00 ZAR 415.00 415.00
4 X200 9 Cell Li-Ion ZAR 850.00 ZAR 3,400.00 3,400.00
5 Think Pad DVD Burner ZAR 414.00 ZAR 2,070.00 2,070.00
5 Samsung 19" Screen ZAR 1,200.00 ZAR 6,000.00
2 Targus Carry Bag for this model - Backpack ZAR 500.00 ZAR 1,000.00
2 Lenovo L2251P 19" TFT LCD ZAR 1,200.00 ZAR 2,400.00
2 ThinkPad 90W AC Adapter ZAR 330.00 ZAR 660.00
2 T410 Laptops ZAR 9,820.00 ZAR 19,640.00
1 T420 Laptop (Materials Manger) ZAR 8,000.00 ZAR 8,000.00
1 ThinkPad Battery 55++ (9 cell) ZAR 1,200.00 ZAR 1,200.00

-
-
-
-
-
-
Value of capital 87,621.00 - -
Zero Check 26,309.46 -
Outstanding expenditure e.g. retentions, guarantees (Provide details)
Total value of capital 87,621.00
Error check 26,309.46

Note:
* Different-life components exceeding R1m (DLCE) must be shown separately.
Each asset's breakdown into different quote components also to be reflected unless obvious
** Note that most reports will only reflect first 21 characters

VOTE CLOSURE

VOTE CLOSED ON:

DATE PLANNER

DATE SITE ENGINEER

DATE ADMIN. MANAGER

DATE GENERAL MANAGER

 Form 5

APPLICATION FOR AUTHORITY TO DISPOSE OR SCRAP AN ASSET (NOT FOR TRANSFERS)

OPERATION PORTLAND HOLDINGS

ASSET DESCRIPTION

ASSET REGISTER DESCRIPTION

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ /_ _ _ _ _ _ _ _ _
ASSET REGISTER NUMBER

PURCHASER

REASON FOR DISPOSAL

Separate form to be completed for each fixed asset register item disposed or scrapped

DISPOSAL / SCRAPPING DATE

REMAINING PLANNED USEFUL LIFE

BOOK VALUE TAX VALUE

Cost Cost -
Accumulated Depreciation Accumulated Wear & Tear
Net book value to expense - Net tax value to expense -

PROFIT/ LOSS (BOOK) PROFIT/ LOSS (TAX)

Estimated proceeds Estimated proceeds -
Profit/(Loss) - Profit/(Loss) -

SITE Signature Name Date

HOD
Administration Manager
General Manager

PHL EXECUTIVE Signature Name Date

Executive Director
Financial Director
Managing Director

PPC EXECUTIVE Signature Name Date

Chief Financial Officer

Chief Executive Officer

Authorisation required by: PPC Board CFO PHL PHL MD PHL Fin Executive GM HOD
All values exclude VAT if deductible resolution & CEO Board Director Director
DISPOSAL OF ASSETS EXCLUDING FIXED PROPERTY
(Greater of market value, book value or 25% original cost; 2 x rentals remaining)
- value less than $2,000.00 - - - - - - Y Y
- value between $2,000.00 and $5,000.00 - - - - - Y Y Y
- value between $5,000.00 and $50,000.00 - - - - Y Y Y Y
- value between $50,000.00 and $100,000.00 - - - Y Y Y Y Y
- value between $100,000.00 and $250,000.00 - - Y Y Y Y Y Y
- value between $250,000.00 and $500,000.00 - Y Y Y Y Y Y Y
- value in excess of $500,000.00 Y Y Y Y Y Y Y Y

DISPOSAL OF FIXED PROPERTY: All Y Y Y Y Y Y Y Y

The legal department must be involved in all transactions involving property

Name of Record Capex Form 5

Edition/Version 3

Locationand/or Owner Ass Acct

Retention Period 7 years

 Form 6

APPLICATION FOR AUTHORITY TO TRANSFER ASSETS BETWEEN SITES

OPERATION PORTLAND HOLDINGS

TRANSFER TO

ASSET DESCRIPTION

ASSET REGISTER DESCRIPTION

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ /_ _ _ _ _ _ _ _ _
ASSET REGISTER NUMBER

TRANSFEREE

REASON FOR TRANSFER

Separate form to be completed for each fixed asset register item transferred

TRANSFER DATE Name of Record Capex Form 6

REMAINING PLANNED USEFUL LIFE Edition/Version 3
Locationand/or Owner Ass Acct
BOOK VALUE Retention Period 7 years
Cost
Accumulated Depreciation
Net book value to expense -

TAX VALUE FORWARD COPY TO THE RECEIVING FACTORY AND

Cost - REQUEST ACKNOWLEDGEMENT OF RECEIPT

Accumulated Wear & Tear

Net tax value to expense -

Before the asset is moved, the receiving site must have completed a duly authorised capex form & sent it to the transferring site

TRANSFEROR SITE Signature Name Date

HOD
Administration Manager
General Manager

PHL EXECUTIVE Signature Name Date

Executive Director
Financial Director
Managing Director

PPC EXECUTIVE Signature Name Date

Chief Financial Officer

Chief Executive Officer

Authorisation required by: PPC Board CFO PHL PPC MD PPC Fin Executive GM HOD
All values exclude VAT if deductible resolution & CEO Board Director Director
DISPOSAL OF ASSETS EXCLUDING FIXED PROPERTY
(Greater of market value, book value or 25% original cost; 2 x rentals remaining)
- value less than $2,000.00 - - - - - - Y Y
- value between $2,000.00 and $5,000.00 - - - - - Y Y Y
- value between $5,000.00 and $50,000.00 - - - - Y Y Y Y
- value between $50,000.00 and $100,000.00 - - - Y Y Y Y Y
- value between $100,000.00 and $250,000.00 - - Y Y Y Y Y Y
- value between $250,000.00 and $500,000.00 - Y Y Y Y Y Y Y
- value in excess of $500,000.00 Y Y Y Y Y Y Y Y

ACKNOWLEDGEMENT OF RECEIPT
Copy to be sent to receiving site for signature and return

TRANSFEREE/ RECEIVING SITE Signature Name Date

Administration Manager
General Manager