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Pretty Good Investments (Pty) Ltd

2.1 COMPANY BACKGROUND Pretty Good Investments (Pty) Ltd is a company registered in Botswana on 25 August 2005. Its main activities are Butchery and Takeaway. It is located at Plot 435. Lobatse, Botswana. It has been operating in this niche since its inception in August 2005 at the same location. The companys shareholding is 100% Motswana, by Mr. Charles Christian Cronje since 2005 to date. The directorship has been the same since September 2006 as follows: Mr. Charles Christian Cronje, Mr Jan Johannes Oosthuizen, and Stephanus Cornelius Bruwer.

As pertains affiliated companies, there is one that is of major relevance: Union Feeders (Pty) Ltd . This is a related company of Pretty Good Investments Located also in Lobatse; and the funds of both these companies are part and parcel of each other. Union Feeders is owned by Mr. Charles Cronje-who is a Botswana citizen (51% shareholding), and his son Charles Cronje Jr (49% shareholding) who is currently waiting for his citizenship application to be approved. Hence it is majority citizen owned. In brief, it is worthy of note that Union Feeders operates on a much larger scale as a cattle speculator/building construction/fencing erection enterprise. Financial Information: The annual revenue of Union Feeders over the last few years has been over Pula 5.5 Million. Pretty Good Investments itself has had an average of Pula 2 Million in revenue over the same period, making the combined revenue almost Pula 8 Million. Both companies are banking with First National Bank (Botswana) and have fruitful relationships with the bank respectively. Pretty Good Investments has an overdraft facility which greatly increases the potential gearing if needed. All this, along with the available loan facilities, demonstrates the extent of available financial resources available for this project in question. Market Information: Presently, Pretty Good Investments (Pty) Ltd (henceforth referred to as PGI), aside from the general populace, is serving a number of corporate and government customers. The corporate ones include Coldline Pizzaden Ghantsi Beef Madina Meat Market British..

The government customers, which are served on a currently running 2 (two) year tender include: Athlone Hospital Lobatse Prison

Ipelegeng CJSS Phitikwe CJSS Lesopa CJSS

This contract of supply is ending on 20 April 2012. Objectives: If PGI is awarded this leasing and operating tender it intends to hit the ground running in as far as conducting this meat wholesale. PGI has been doing this already, but in this case it would be tantamount to them doing what they know, only at a much larger scale. The Work Plan below details the long and short of the whole intended venture. 2.3 Work Plan: 2.3.1 General Features: The main type of meat that PGI will deal in is beef, however there will also be goat, sheep/lamb, and to a smaller extent chicken. The modus operandi will entail acquiring carcasses primarily from Botswana Meat Commission (BMC) and preparing them for mass sale to interested customers on a large scale. By virtue of being a wholesale, the implication is that the price per kg of all meat product sold here will be significantly reduced. PGI anticipates that most of its customers will be those intending to buy for subsequent resale. This includes butcheries and perhaps supermarkets with a meat section. Or any interested party for that matter. There will be no restrictions. Products will be available either in: Whole carcasses or Various Portions

The various portions will include rump steak, t-bone steak, sausage material, polonies and so forth. Preparation of the meat will be done on site. PGI intends to make full use of the 2 available cold rooms as well as the rest of the operating equipment being availed. Management/Organisation structure: The management of the company constitutes of mainly the Managing Director (MD) and his management subordinates. The MD in this case is Mr. Charles C. Cronje Snr. He has over 35 years experience in this general field, including running a butchery, farming, cattle buying and selling as well as feedlotting. For good measure its worthy of note that he is a citizen of Botswana. Under him there will be a Factory (General) Manager. The ideal individual has already been identified who has vast experience in the same areas as Mr. Cronje Snr. The next tier below the factory manager will have 6 individuals. 3 of them will be Supervisors, and the other 3 will be Blockmen. These will be citizens with 5-8 years experience in this role with established abattoirs, butcheries or other meat processing companies. They have yet to be identified for selection. One of the supervisors will have under him 2 Deboners. These deboners will be citizens with ideally 4-5 years relevant experience. Each of the other 2 supervisors, as well as the blockmen will have general Assistants under them to help with day to day aspects of the operation. These assistants will be citizens with 2-3 years relevant experience. All these employees will receive on the job training as part of the PGI team. Administration and Accounting: The financial management and the dispensation of administration duties will be undertaken by a suitably qualified citizen. This individual should be a holder of a respectable qualification, for instance full AAT or a B Com. They should have 3-5 years relevant experience. To summarise, in total the initial staff component will be 18 (eighteen) excluding support staff from Union feeders like the truck drivers. Staff will be hired as per need as the business expands. Preferance will be given to Botswana citizens, but relevant experience is paramount. For a clear visual picture of this, an organogram has been attached. Operations: The operation cycle will involve: Acquiring the carcasses form source, chiefly Botswana Meat Commission (BMC). This will be done using PGIs own licensed trucks. Deboning, cutting and processing will be done as soon as possible to preserve the freshness of the meat. Packaging will also be done for those products that require it. Meat will be sorted according to various sizes and portions to allow for easy identification on display for customers. Cleaning and waste management will run concurrently and will be undertaken mostly by the assistants under the watch of supervisors. The on-site cleaning waste will be safely drained into the sewerage system. Trucks will be available to take waste to the dumping site frequently. In the name of quality assurance, inspectors from the relevant authorities are welcome to visit the site at any point. Criticisms in this area will be taken seriously and constructively. Toilets and Changing rooms will be constructed, and even there a strict clean code will be adhered to. Detergents and chemicals will be used to achieve this. There will be quality medical check ups for the staff annually. The selling stage will ensue as we will allow interested parties to come in and view the products and subsequently purchase. Repairs and Upkeep The maintenance of the building will be done on a preventionrather-than-cure basis. PGI will strive to avoid development of any structural problems with the property. This includes the land, buildings, furniture, fittings and all electrical (the 2 cold rooms included). Again, PGI invites the concerned individuals to inspect the property whenever they see fit. Recommendations will be taken under advisement.

2.4 Level of Citizenship Shareholding: Mr. Charles C. Cronje Snr is the sole (100%) shareholder, and he is a Botswana citizen.

2.5 Financial Capability Analysis: Pretty Good Investments (Pty) Ltd is capable of generating funds for the Lease in question. Bank Statements backdating 6 months have been attached as an exhibit to this effect. As mentioned above, in as far as support in thin financial times there is also the funding from the related company Union Feeders (Pty) Ltd (UF) at the disposal of PGI. UF can and will inject funds as they are needed in this venture. Also, as evident from the annual financial statements of UF, the company is financially stable, and at this rate the expansion of the horticultural marketing structure venture is highly possible. Least of the worry, hence is the capacity to make the lease payments. Bank statements backdated 3 months of UF are furnished here. Also, a resolution by the board of directors of UF has been passed to finance PGI. See attached documents. Noteworthy, is that if need be, UF has access to overdraft facilities as well as loans from First National Bank, stemming from the long relationship with the bank. As security, plots in the name of UF can be offered as security for these loans. Contributions by Pretty Good Investments: To get the wholesale off the ground PGI will provide: 2 refrigerated trucks from Union Feeders. Freezer room (worth Pula 50 000-00). A cooling system to be installed (worth Pula 20 000-00). A display (worth Pula 40 000-00). Vacuum machine and Band Saws (combined worth Pula 60 000-00).