UCT moves to become one of the three most B-BBEE compliant universities in South Africa, according to the latest B-BBEE verification assessment on the institution.
What happens to your B-BBEE Compliance Targets if you make a financial loss?
Three elements on the B-BBEE Scorecard use Net Profit After Tax (NPAT) to calculate the Compliance Targets: Enterprise Development, Supplier Development and Socio-Economic Development.
By Jackie Kitching and Zahn Abreu
14 Feb 2021 09:53
Image: Shutterstock
Three elements on the B-BBEE Scorecard use Net Profit After Tax (NPAT) to calculate the Compliance Targets: Enterprise Development (ED) (1% of NPAT), Supplier Development (SD) (2% of NPAT) and Socio-Economic Development (SED) (1% of NPAT). These three elements constitute 20 points (excluding 2 bonus points) on the Generic Scorecard.
In the event that a Measured Entity does not make a profit during their financial period, or if the profit is less than a quarter of the industry norm, the Amended Codes of Good Practice (Codes), together with recommendations from SANAS, dictate the steps required in order for the Measured Entity to determine it