Zama Clothing — Corporate Governance & Reporting

Zama Clothing will establish a Board of Directors comprising a minimum of five members, including the CEO (executive), two non-executive directors nominated by the equity investors, one independent non-executive director with apparel industry expertise, and one independent non-executive director with financial and…

Zama Clothing Manufacturers (Pty) Ltd Business PlanSection 18 › Corporate Governance & Reporting

Section 18 · Business Plan

Corporate Governance & Reporting

Zama Clothing will establish a Board of Directors comprising a minimum of five members, including the CEO (executive), two non-executive directors nominated by the equity investors, one independent non-executive director with apparel industry expertise, and one independent non-executive director with financial and…

18.1 Board of Directors

Zama Clothing will establish a Board of Directors comprising a minimum of five members, including the CEO (executive), two non-executive directors nominated by the equity investors, one independent non-executive director with apparel industry expertise, and one independent non-executive director with financial and governance expertise. The Board will meet quarterly and will be supported by two sub-committees: an Audit and Risk Committee and a Social and Ethics Committee, as required by the Companies Act.

18.2 Investor Reporting

Comprehensive investor reporting will be provided on the following schedule to ensure transparency and accountability:

Report Frequency Content
Management Accounts Monthly Income statement, balance sheet, cash flow, KPI dashboard, variance analysis against budget
Board Pack Quarterly Financial results, operational metrics, risk register update, strategic initiatives progress
Audited Financials Annual IFRS-compliant financial statements with independent auditor report
BEE Verification Annual Updated BEE certificate with element-level scorecard
ESG Report Annual Environmental metrics, social impact data, governance compliance
Lender Covenant Report Quarterly DSCR calculation, leverage ratios, capital expenditure vs. budget

18.3 Key Performance Indicators (KPIs)

The following KPIs will be tracked monthly and reported to the Board to ensure operational and financial performance remains on track:

KPI Yr 1 Target Yr 3 Target Yr 5 Target
Revenue (R Million) 32 95 185
Gross Margin (%) 38% 42% 45.5%
EBITDA Margin (%) 2.8% 19.0% 26.9%
Capacity Utilisation (%) 40% 75% 92%
On-Time Delivery Rate 85% 95% 98%
Quality Reject Rate <5% <2% <1%
Customer Retention Rate N/A 80% 90%
Employee Turnover Rate <25% <18% <12%
BEE Level Level 2 Level 1 Level 1
Training Spend (% Payroll) 3% 3.5% 4%

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