ponzo oil company proposal

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PONZOSOUTH

AFRICALIMITED

BUSINESS PROPOSAL

Name: Akua Datsewa Hughes

Lecturer: Anthony Essel-Anderson

Course: International Finance

Assignment: 2

Date: 26th April, 2013


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TABLE OF CONTENTS

Section

Page

COMPANY PROFILE ......................................................................................................... 3

Mission, Vision and Values ........................................................................................... 3

Objectives ...................................................................................................................... 4

Strategies ........................................................................................................................ 4

DESCRIPTION OF TARGET COUNTRY ......................................................................... 5

Rationale for choosing target country ............................................................................ 5

REVIEW OF BUSINESS ENVIRONMENT ...................................................................... 7

Economic system ........................................................................................................... 7

Industry Overview ......................................................................................................... 7

Exchange controls .......................................................................................................... 8

Trade and economic ties ................................................................................................ 8

State of the economy ...................................................................................................... 9

Political environment ..................................................................................................... 9

Financial environment ................................................................................................. 10

RISK MANAGEMENT STRATEGIES ............................................................................ 10

ENTRY STRATEGIES ...................................................................................................... 10

FINANCING STRATEGIES ............................................................................................. 11

CASHFLOW ANALYSIS ................................................................................................. 11

CONCLUDING REMARKS ............................................................................................. 11

WORKS CITED ................................................................................................................. 13

APPENDIX ........................................................................................................................ 14


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COMPANY PROFILE

Ponzo Oil Limited is a Ghanaian-based Multinational Petroleum Producing Company with 20

subsidiaries located across the globe, including countries like the United States, Australia,

India, Switzerland and Argentina. It is a public limited liability company which has been in

operation since 1991 and has listed on various stock markets including the Ghana Stock

Exchange and the New York Stock Exchange. Ponzo has a total of 50,000 employees in all of

its operations and markets three main versions of petroleum products: a high-end version for

developed markets, a standard version for evolving economies and a low-end version for

developing economies. Ponzo's popularity as well as its strong brand qualities have been

instrumental in the successful capturing of a significant market share of the petroleum

industry on the international market. Today, Ponzo is looking to further expand its global

coverage and make its debut into a second country on the African continent. This subsidiary,

which will be located in Johannesburg-South Africa, will go by the name of Ponzo South

Africa Limited.

Ponzo South Africa Limited will be headed by John Harrison (Managing Director) and his

team of managers: Georgina Hughes (Deputy-Managing Director), Jacqueline Grant (Head of

Operations), Theodore Attivor ( Head of Marketing), Josephine Okine (Human Resource

Manager), George Nunoo (Head of Finance) and Dean Tsabalala (External Affairs Director).

Mission, Vision & Values

The mission of Ponzo South Africa Limited, as well as the Ponzo brand as a whole, is to

produce and market the finest petrol and petroleum products, originated from Africa, which

can effectively compete with western petroleum companies on the international market. Our

vision is to rank top 5 in the worlds premium oil producing/ marketing co mpanies by 2050.

The company prides itself in the values of distinction, integrity, hard work and reliability.


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Objectives

Our main objective is to produce and market a wide range of standard version petroleum

products including petrol, diesel, automotive fuels, car lubricants, bitumen, and the like,

which will serve the needs of the mining, aviation, transportation and manufacturing

industries in the country. Our aim is to become the market leader of the oil industry in South

Africa. We have a business objective to earn R200, 000,000 in revenue by the fifth year,

whilst creating maximum value for our shareholders. Ponzo South Africa Limited will

continue to operate in perpetuity.

Strategies

Ponzo has consistently adopted the Going local business strategy which entails the

production of petroleum products in the host country of its foreign operations. The rationale

behind the adoption of this strategy in countries like the United Sates and Switzerland is the

presence of modern capital equipment for easy oil refining and petroleum production. This

strategy has proven effective in securing the demand of locals who do not only prefer quality

but also locally produced goods. Ponzo South Africa Limited hopes to follow suit in this

regard, although it will adopt a different entry strategy in its first few years (possibly ten) of

operation.


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DESCRIPTION OF TARGET COUNTRY - SOUTH AFRICA

South Africa, officially known as the Republic of South Africa, is located at the southernmost

part of Africa with a land size of 1,219,090 square kilometers. Its ethnically-diverse

population, according to the 2011 census, stands at 51 million people, with a composition of

blacks (77%), whites (11%) and mixed race individuals (9%). The administrative capital of

the country is Pretoria. SA recognizes 11 official languages including English, Afrikaans,

Sesotho, IsiZulu and Xitsonga (PKF South Africa Inc., 2012). South Africa is a federal state

with nine provincial governments as well as a national government which is elected into

power every 5 years. The president, currently Jacob Zuma, is elected by the national

assembly. South Africa was the last African country to gain independence in 1994, and was

hitherto characterized by a period of racial discrimination and colonization by the English

and Dutch, a phenomenon popularly known as apartheid (Big Media Publishers, 2012). The

country's currency is the South African Rand and its exchange rate currently stands at about

ZAR9.0933/USD and ZAR4.6229/GHS as at 25th April, 2013 (Bloomberg, 2013).

Rationale for choosing target country

Ease of doing business

According to the Doing Business 2013 Report by the World Bank, South Africa is

ranked the 39th easiest country to do business in, out of the 185 countries on the list. It is also

the first and only African country, besides Tunisia (50 th), to make it to the top 50. Whereas on

average, there are 8 different procedures for starting a business in Sub-Saharan Africa, South

Africa employs only 5 procedures. Likewise, cost associated with start-ups in the sub region

stands at 67.3% of income per capita, whilst it is only 0.3% of income per capita in South

Africa. In terms of ease of getting credit for business operations, South Africa ranks number

1. Furthermore, the country has a relatively low tax rate of 33.3% of profit (International


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Bank for Reconstruction and Development, 2013). This makes South Africa the single most

attractive business economy in Africa.

Availability of labour

In terms of availability of labour, South Africa has a total working force of about

17.89 million with unemployment rate at 24.4% in 2012 (IndexMundi, 2013). As a result of

the relatively high unemployment rate in the country, labour is cheaper than in more

advanced economies. Average monthly salary in the Oil & Gas industry is about 31,365 ZAR

(Salary Explorer, 2012).

Access to ready market

The country offers a ready market for petroleum products as is indicated by its large

consumption of 579,000 barrels of oil per day in 2011 (Science Daily, 2012). Since June

2012, South Africa has significantly reduced its oil imports from Iran as a result of US

sanctions imposed on Iran's trading partners (Ventures, 2013). Prior to this period, a large

quantity of the countrys oil imports, about 266,762 tonnes per month, came from Iran. This

has a left a gap in the supply of oil to South Africa, which Ponzo South Africa Limited will

take advantage of.

Proximity to capital

South Africa has a limited oil reserve of about 15 million barrels as at January, 2011

(Central Intelligence Agency, 2013). It imports a large percentage of its oil from the Middle

East and West Africa and refines them locally (U.S. Energy Information Adminstration,

2013). SA has the second largest refinery capacity in Africa after Algeria (MBendi, 2013). It

also has pipelines which transport oil from the refinery in Durban to Gauteng, which

consumes the largest percentage of oil in South Africa. As such, setting up in Johannesburg


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in the Gauteng province will give Ponzo SA Limited direct access to capital for oil refining

and petroleum production, when it eventuallygoes local.

REVIEW OF BUSINESS ENVIRONMENT OF SOUTH AFRICA

Economic system

South Africa, like most emerging economies, practices a mixed economic system whereby

some enterprises are state-owned whereas others are privatized. It is, however, more capitalist

than socialist in its policies for ownership of property (Harris, 1990).

Industry Overview

South Africa's energy sector is very crucial to the growth and development of the economy.

The Oil & Gas segment of the energy sector has two subdivisions: the upstream sector for

exploration and the downstream sector for refining, marketing and distribution of oil and oil

products (MBendi, 2013). The downstream sector, also known as the petroleum industry is

regulated by the South African Petroleum Industry Association (SAPIA). This sector forms a

significant part of the energy sector as a whole, contributing 2% to Gross Domestic Product

(SAPIA, 2013). The petroleum industry supplies 18% of South Africa's main energy and over

90% of petroleum products consumed in the country. It also provides employment for more

than 100,000 people. South Africa's petroleum industry is dominated by several multinational

oil companies including BP Southern Africa, Chevron South Africa, Engen, Total South

Africa and Petroleum Oil and Gas Corporation. Although fuel prices are influenced by the

world price of crude oil to a large extent, they are regulated by the South African

government. Since crude oil prices are quoted in US dollars, prices are also influenced by the

rand/dollar exchange rate (Department of Energy: South Africa).


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Exchange controls

The body responsible for the monitoring of exchange controls is the South African Reserve

Bank (SARB), which is regulated by the South African Reserve Bank Act No. 90 of 1989

(PKF South Africa Inc., 2012). The act classifies a non-resident as a person or legal entity

whose normal place of residence, domicile or registration is outside the Common Monetary

Area (CMA), that is Lesotho, South Africa, Namibia and Swaziland (PKF South Africa Inc.,

2012). The exchange rate rules for non-residents are as follows:

Dividends for non-resident shareholders are remittable provided documentary evidence ismade available. Dividends for emigrant shareholders are remittable to the extent that they

were earned after the date of emigration.

An entity in South Africa must produce an auditors report confirming amount due to non-residents and emigrants prior to the payment of dividends to non-residents and emigrants.

Foreign nationals, persons or entities from outside countries who temporarily reside in SA,can transfer funds accumulated over their stay in the country abroad, provided the entity can

provide evidence of the source and amount of funds obtained from income-generating

activities in the country.

Affected persons, entities with 75% or more voting power possessed by non-residents, mayacquire financial assistance without restriction from authorized dealers. The greater the

involvement of residents in non-resident wholly-owned entities, the greater the ability to

borrow locally.

Foreign entities can establish and register headquarters in South Africa and deploy capitaloffshore without restriction. Requirements for registration include:

20% shareholding power per shareholder Restriction on Johannesburg Stock Exchange listed shares 20% limit on SA resident shareholding in the headquarter company 80% of assets of company must consist of foreign assets

Trade and economic ties

In 2010, South Africa joined an association of emerging economies known as the BRICS,

which is made up of Brazil, Russia, India, China and South Africa. This alliance, which aims

at promoting economic cooperation among member countries, places South Africa ahead of


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the pack in Africa (Brand South Africa, 2013). Besides the BRICS, the country has a number

of trade agreements and economic relationships with organizations like the European Union,

the Southern African Development Community (SADC), the Southern African Customs

Union (SACU) and the like (U.S. & Foreign Commercial Service; U.S. Department of State,

2010). Its main trading partners include China, Germany and the United States. In 2009, the

US was the countrys largest source of imports contributing 7.7% of South Africas total

imports (U.S. & Foreign Commercial Service; U.S. Department of State, 2010).

State of the economy

South Africa is one of the strongest economies in Africa. According to the IMF, SA is the

25th largest economy in the world in terms of GDP size, with a GDP composition of

agriculture (2.5%), industry (31.6%) and services (65.9%) as at 2011 (Big Media Publishers,

2012). In 2012, GDP grew by 2.6% to the tune of $578.6 billion (Central Intelligence

Agency, 2013). In the same year, inflation rate increased from 5% to 5.2% making SA the

145th country with the highest inflation rate. The country also suffered a budget deficit of

5.4% of GDP, current account deficit of $21.33 billion and fiscal deficit of 4.5% which are

not very good economic indicators.

Political environment

The political environment of South Africa has been relatively stable since the end of

apartheid in 1994. However, tensions between factions of the ruling party, African National

Congress (ANC), threaten political stability within the economy, which may affect

businesses including Ponzo South Africa Limited (JLT Specialty Limited, 2012). The most

likely political risks in SA include expropriation, corruption, civil unrest, protectionism and

confiscation (Essel, 2012).


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Financial environment

The state of the economy in 2012, as indicated above, was characterized by an increase in

inflation, a current account deficit, fiscal deficit and a trade balance deficit. This goes to show

that firms located in South Africa face various financial risks including currency risk,

inflation risk, current account balance and balance of trade. Ponzo South Africa Limited

would also face transaction, translation and operating exposure as a result of likely changes in

currency value.

RISK MANAGEMENT STRATEGIES

Based on the country risks listed above, Ponzo SA will negotiate the environment with the

host country and obtain political risk insurance in order to manage its potential risks.

Negotiating the environment with the host government would reduce the company's political

risks since both parties would have to come to an agreement and draft a contract. Obtaining

political insurance provides a means of recovering from losses in the event that the

government breaches the contract or the firm is affected by unexpected political initiatives.

The firm can also manage its financial risks by using financial contract hedges, or adopting

various operational techniques including invoice currency, lead/lag technique and exposure

netting to protect cash flows.

ENTRY STRATEGY

Ponzo South Africa Limited will adopt the Export-based strategy for the first few years of

operation. This is as a result of the outmoded nature of the existing oil refineries in South

Africa. During this period, the firm will export petroleum products from the parent company

in Ghana and set up a foreign subsidiary in Johannesburg to manage marketing and

distribution in South Africa. Within that same period, Ponzo will accumulate capital for the


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building of a modern oil refinery in Durban, and consequently switch to anInvestment-based

foreign market entry strategy, particularlyforeign direct investment, upon the completion of

the refinery.

FINANCING STRATEGY

The firm will finance its foreign operation in South Africa with both debt and equity with an

average debt-to-equity ratio of 0.5. It will float shares to the investing public on the

Johannesburg Stock Exchange and also take advantage of the ease of getting credit in South

Africa to secure bank loans and other forms of credit. However, in the first five years, the

firm will rely heavily on loans from the parent company, since Ponzo SA will not float shares

at the beginning stages of its operations. Furthermore, interest on loans is tax allowable; as

such financing operations with debt would reduce the amount of taxes paid by the firm hence

increase profit.

CASH FLOW ANALYSIS

The projected cash flows for the first five years of Ponzo South Africa Limited's existence

have been illustrated in the appendix below. Ponzo SA's initial investment in property plant

and equipment sums up to R80,381,557.2 as shown in appendix 1. Operating revenue for the

first year is estimated to be about R130,562,996.04 partly attributable to Ponzo's highly

prestigious global brand, whereas operating revenue for the second to fifth year were

assumed to grow by 10%. A tax rate of 33.3%, which is South Africa's income tax rate, was

applied to the company's net operating income.

It is seen that Ponzo SA has a payback period of 2.8 years which is relatively low and less

than the estimated period of 4 years. This indicates that Ponzo SA is a worthwhile venture

hence should be undertaken. Furthermore, Ponzo SA has a positive net present value of

R14,650,805.92 implying that the project should be implemented. The operating cash flows


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as well as the projected statement of comprehensive income and statement of financial

position are also shown in the appendix. According to projections, Ponzo SA would be able

to meet its business objective of earning R200,000,000 in the fifth year, which is a good

indicator for the company.

CONCLUDING REMARKS

Ponzo South Africa Limited is well positioned to take the South African Petroleum Industry

by storm. This is illustrated by the various strategies Ponzo has adopted to ensure it captures

a significant share of the market and ultimately become the market leader in the country. It is,

however, important that the company bears in mind the various challenges associated with

operating in a different country and prepare adequately in that respect in reach its objectives.


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WORKS CITED

Bloomberg. (2013). US Dollar-South African Rand Exchange Rate. Retrieved April 25, 2013,

from Bloomberg.com: http://www.bloomberg.com/quote/USDZAR:CUR

Brand South Africa. (2013). South Africa in BRICS. Retrieved April 20, 2013, fromSouthAfrica.info: http://www.southafrica.info/global/brics/

Central Intelligence Agency. (2013). The World Factbook. Retrieved April 18, 2013, from

cia.gov: https://www.cia.gov/library/publications/the-world-

factbook/rankorder/2178rank.html

Central Intelligence Agency. (2013, April 12). The World Factbook. Retrieved April 20,

2013, from cia.gov: https://www.cia.gov/library/publications/the-world-factbook/geos/sf.html

Department of Energy: South Africa. (n.d.). Petroleum Sources. Retrieved April 19, 2013,

from energy.gov.za: http://www.energy.gov.za/files/petroleum_frame.html

Essel, R. (2012). Short-term Insurance of Political Risks in South Africa. Stellenbosch

University.

Harris, L. (1990). The Mixed Economy of a Democratic South Africa. Investment Analysts

Journal, 32-40.

IndexMundi. (2013). Unemployment rate. Retrieved April 19, 2013, from IndexMundi.com:

http://www.indexmundi.com/south_africa/unemployment_rate.html

International Bank for Reconstruction and Development. (2013). Doing Business 2013.

Washington: The World Bank.

JLT Specialty Limited. (2012). World Risk Review Analyses Political Risk and Violence in

South Africa Report. JLT Group.

MBendi. (2013). Oil and Gas in South Africa. Retrieved April 18, 2013, from mbendi.com:

http://www.mbendi.com/indy/oilg/af/sa/p0005.htm

PKF South Africa Inc. (2012).Doing Business in South Africa. PKF International Limited.

Salary Explorer. (2012). Salary in Survey South Africa. Retrieved April 18, 2013, from

salaryexplorer.com: http://www.salaryexplorer.com/salary-survey.php?loc=201&loctype=1

SAPIA. (2013). Industry Overview. Retrieved April 20, 2013, from sapia.co.za:

http://www.sapia.co.za/industry-overview.html

Science Daily. (2012). CIA World Fact Book. Retrieved April 18, 2013, from

sciencedaily.com: http://cia-world-fact-book.sciencedaily.com/q/284/7659/

U.S. & Foreign Commercial Service; U.S. Department of State. (2010). Doing Business in

South Africa - 2011 Country. South Africa Country Commercial Guide 2011.


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U.S. Energy Information Adminstration. (2013, January 17). South Africa. Retrieved April

18, 2013, from eia.gov: http://www.eia.gov/countries/cab.cfm?fips=SF

Ventures. (2013, March 29). South Africa Decreases Crude Oil Imports From Iran. Retrieved

April 17, 2013, from ventures-africa.com: http://www.ventures-africa.com/2013/03/south-

africa-decreases-crude-oil-imports-from-iran/


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APPENDIX

Appendix 1

Property, Plant & Equipment Cost (R)

Leasehold properties 9,605,860.00

Distribution & Service Station Plants 66,500,500.00

Furniture Equipment & Motor Vehicle 1,204,363.20

Work-in-progress capital 3,070,834.00

Total Cost 80,381,557.20

Schedule of Projected Net Cash flows

Years 0 1 2 3 4 5InitialCash

flows:R R R R R R

Property,plant &

equipment80,381,557.20

Transport 169,500.00

InitialCash

outflow80,551,057.20

OperatingCash

inflows:

OperatingRevenue

130,562,996.04 145,069,995.60 161,188,884.00 179,098,760.00 200,000,000.00

OperatingCosts:

(91,632,800.00) (102,219,234.5) (115,500,505.45) (124,473,381.00) (132,987,214.70)

NetOperatingIncome

38,930,196.04 42,850,761.10 45,688,378.55 54,625,379.00 67,012,785.30

LessCapital

Allowance(32,864.00) (28,980.04) (23,555.66) (30,239.89) (30,250.15)

Net

OperatingIncome

before tax

38,963,060.04 42,821,781.06 45,711,934.21 54,655,618.89 67,043,035.45

Tax(33.3%)

(12,857,809.81) (14,131,187.75) (15,084,938.29) (18,036,354.23) (22,124,201.70)

After-taxNet

OperatingIncome

26,105,250.23 28,690,593.31 30,626,995.92 36,619,264.66 44,918,833.75

Add backCapital

Allowance32,864.00 28,980.04 23,555.66 30,239.89 30,250.15

After-tax

NetOperatingCash flow

26,138,114.23 28,719,573.35 30,650,551.58 36,649,504.55 44,949,083.90

After-taxNet Cash

flows26,138,114.23 28,719,573.35 30,650,551.58 36,649,504.55 44,949,083.90

Appendix 2


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Appendix 3

Payback Period

End of Year (EOY) Net Cash flow Balance (R)

0 (80,551,057.20) (80,551,057.20)

1 26,138,114.23 (54,412,942.97)

2 28,719,573.35 (25,693,369.62)

3 30,650,551.58 4,957,181.96

4 36,649,504.55 41,606,686.50

5 44,949,083.90 86,555,770.41

Payback Period= Years before full recovery + BalanceNCF of full recovery

year

Payback Period= 2 + 25,693,369.62

30,650,551.58Payback Period

= 2.838267773 years

Appendix 4

Discounted Payback Period

End of Year(EOY) Net Cash flow

Discountfactor Present value Balance

R 1/(1+0.2)^t R R

0 (80,551,057.20) 1 (80,551,057.20) (80,551,057.20)

1 26,138,114.23 0.833333333 21,781,761.86 (54,412,942.97)

2 28,719,573.35 0.694444444 19,944,148.16 (25,693,369.62)

3 30,650,551.58 0.578703704 17,737,587.72 4,957,181.96

4 36,649,504.55 0.482253086 17,674,336.68 41,606,686.50

5 44,949,083.90 0.401877572 18,064,028.70 86,555,770.41

NPV= 14,650,805.92

Discounted payback period= Years before full recovery + BalanceDisc. NCF of full

recovery

Discounted payback period= 2 + 25,693,369.6217,737,587.72

Net Cash flow translation to GH: Rate ZAR4.6229/GHS

After-tax Net Cashflows

17,424,356.4 5,654,051.40 6,212,458.27 6,630,156.74 7,927,816.86 9,723,135.67


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Discounted payback period= 2.448526712 years

Appendix 5

Projected Statement of Comprehensive Income

Year 1 Year 2 Year 3 Year 4 Year 5

R R R R R

Revenue 130,562,996.04 145,069,995.60 161,188,884.00 179,098,760.00 200,000,000.00

Cost of sales (91,632,800.00) (102,219,234.50) (115,500,505.45) (124,473,381.00) (132,987,214.70)

Gross Profit 38,930,196.04 42,850,761.10 45,688,378.55 54,625,379.00 67,012,785.30

Other Income 9,360.00 9,828.00 10,319.40 10,835.37 11,377.14

General &

Administrativeexpenses (156,211.18) (164,021.74) (172,222.83) (180,833.97) (189,875.67)

Operating

Profit before

financing cost 38,783,344.86 42,696,567.36 45,526,475.12 54,455,380.40 66,834,286.77

Interest Income 800.00 840.00 882.00 926.10 972.41

InterestExpense (25,435.06) ( 26,706.81) ( 28,042.15) ( 29,444.26) (30,916.47)

Net FinanceCost (24,635.06) ( 25,866.81) ( 27,160.15) (28,518.16) (29,944.07)

Profit before

taxation 38,758,709.80 42,670,700.55 45,499,314.97 54,426,862.24 66,804,342.70

Income Taxexpense (12,857,809.81) (14,131,187.75) (15,084,938.29) (18,036,354.23) (22,124,201.70)

Profit for the

year 25,900,899.99 28,539,512.80 30,414,376.68 36,390,508.01 44,680,141.00

Profit Translation to GH : Rate ZAR4.6229/GHS

Profit for the

year 5,602,738.54 6,173,508.58 6,579,068.70 7,871,792.17 9,664,959.44


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Appendix 6

Projected Statement of Financial Position

Year 1 Year 2 Year 3 Year 4 Year 5

R R R R R

Assets

Property, plant andequipment 80,381,557.20 84,400,635.06 84,822,638.24 85,246,751.43 85,672,985.18

Intangible assets 20,488.00 21,512.40 19,463.60 20,436.78 20,436.78

Long term investments - 600.00 1,254.00 1,254.00 1,254.00

Total non-current assets 80,402,045.20 84,422,747.46 84,843,355.84 85,268,442.21 85,694,675.96

Inventories 14,312,098.00 15,027,702.90 16,004,503.59 14,276,317.76 15,204,278.41

Income tax asset 1,003.00 1,053.15 952.85 1,000.49 950.47

Trade and otherreceivables 540,289.00 594,317.90 653,749.69 719,124.66 791,037.12

Amount held by holdingcompany - - - - 233,333.00

Cash and cash equivalents 283,679.00 684,234.00 650,022.30 682,523.42 716,649.59

Total current assets 15,137,069.00 16,307,307.95 17,309,228.43 15,678,966.32 16,946,248.59

Total assets 95,539,114.20 100,730,055.41 102,152,584.26 100,947,408.53 102,640,924.55

Equity

Share capital - - 5,987.00 5,987.00 5,987.00

Retained earnings - 2,538,099.00 2,665,003.95 2,798,254.15 2,938,166.85

Total Equity - 2,538,099.00 2,670,990.95 2,804,241.15 2,944,153.85

Liabilities

Bank overdraft - - 2,900.00 7,398.00 2,009.00

Trade and other payables 17,279,862.00 34,559,724.00 36,287,710.20 38,102,095.71 40,007,200.50

Amount due to relatedcompanies 28,998,122.98 30,448,029.13 31,970,430.59 33,568,952.11 35,247,399.72

Total current liabilities 46,277,984.98 65,007,753.13 68,261,040.79 71,678,445.82 75,256,609.22

Loan from parentcompany 49,261,129.22 33,184,203.28 31,220,552.53 26,464,721.56 24,440,161.48

Total non-current

liabilities 49,261,129.22 33,184,203.28 31,220,552.53 26,464,721.56 24,440,161.48

Total liabilities 95,539,114.20 98,191,956.41 99,481,593.31 98,143,167.38 99,696,770.70


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Total liabilities and

equity 95,539,114.20 100,730,055.41 102,152,584.26 100,947,408.53 102,640,924.55

Total liabilities and equity translation to GH: Rate ZAR4.6229/GHS

Total liabilities and equity 20,666,489.48 21,789,364.99 22,097,078.51 21,836,381.61 22,202,713.57

ponzo oil company proposal

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