Transcript Slide 1

COMPOSITE GLASS DISC &
PORCELAIN INSULATORS
CORP 3035
Financial Requirements
Presented by: Tshiwela Skosana -Commercial Finance
Date: Thurs 18 Sept 2014
Financial Returnables
1. Pricing Schedule (Excel File)
Consists of following worksheets:
1. Instructions
2. Insulator Summary
3. PS5 Schedule
4. 49 Activity Schedules
5. Option X 3: Foreign Currency
6. Option X 1: Contract Price Adjustment
5. Transport
Input is required in all cells shaded light green
2. CPA (IG) Form – indicate Foreign payment method
2
SA Summary Sheet
ENQUIRY No
CORP 3035
COMMODITY
COMPOSITE GLASS DISC AND
PORCELAIN INSULATORS
SUPPLIER
Tenderers to Enter:
1. Supplier’s Name
This information pulls through into remainder of spreadsheet
3
Activity Schedules
COLUMN:
E
F
Cost allocation
General
Engineering and Manufacture
Engineering and Manufacture
Design
Engineering and Manufacture
G
H
PS5 Allocation
1.
1.
1.
1.
1.
Ex Works
Ex Works
Ex Works
Ex Works
Ex Works
Price (Overseas)
Price (Overseas)
Price (Overseas)
Price (Overseas)
Price (Overseas)
Activity
I
Tier 2 Supplier
Input costs
Head office overheads
Factory Overheads
Project management
Design Fees
Labour
Tenderers to Enter:
1. Supplier details:1.1 Name of supplier into column H
1.2 Factory of Origin into column I
Note: some rows and columns that appear in the Excel file are hidden in the above extract
4
Factory of Origin
Activity Schedules
COLUMN:
F
J
K
L
M
ACTIVITY DETAILS & PS5
ALLOCATION
PS5 Allocation
1.
1.
1.
1.
1.
Ex Works
Ex Works
Ex Works
Ex Works
Ex Works
Price (Overseas)
Price (Overseas)
Price (Overseas)
Price (Overseas)
Price (Overseas)
1. Ex Works Price (Overseas)
N
Option X3 Data
PRICE (In
Rands)
PRICE
5.00
5.00
5.00
5.00
5.00
-
Foreign / Local
Currency Type
RoE Currency
1,00 = R
R
R
R
R
R
5.00
49.65
54.87
71.09
89.17
Local
Foreign
Foreign
Foreign
Foreign
ZAR
AUD
USD
EUR
GBP
1.00
9.93
10.97
14.22
17.83
R
-
Local
ZAR
1.00
Tenderers to Enter:
1. Unit Price in relevant currency into column J exc VAT
2. Currency type (eg ZAR or USD or EUR) into column M
Conversion to ZAR takes place based on your input into sheet “Option X 3”
Note: some rows and columns that appear in the Excel5 file are hidden in the above extract
Activity Schedules – “Other” Items
COLUMN: E
Cost allocation
F
G
H
PS5 Allocation
Additional Items - Specify below
1. Ex Works Price (Overseas)
1. Ex Works Price (Overseas)
1. Ex Works Price (Overseas)
1. Ex Works Price (Overseas)
1. Ex Works Price (Overseas)
1. Ex Works Price (Overseas)
1. Ex Works Price (Overseas)
1. Ex Works Price (Overseas)
Activity
I
Tier 2 Supplier
J
Factory of Origin
PRICE
Additional Items - Specify below
-
Tenderers to Enter:
1. Cost Description into column E
2. PS 5 Allocation into column F: use drop down list
3. Activity description into column G
4. Supplier details in columns H & I Total
5. Pricing (rate) in column J
6. Currency into column M
Note: some rows and columns that appear in the Excel file are hidden in the above extract
6
Summaries: PS 5 Schedule
3.
7.
ITEM NUMBER ACCORDING TO THE ITEM LIST
101A
101B
102A
PS5 ALLOCATION (FROM ACTIVITY SCHEDULE)
AMOUNT
AMOUNT
AMOUNT
1. Ex Works Price (Overseas)
R
-
R
-
R
-
2. Inland Transport Cost
R
-
R
-
R
-
R
-
R
-
R
-
4. Cost of seafreight
R
-
R
-
R
-
5. Cost of airfreight
R
-
R
-
R
-
6. Cost of Marine Insurance*
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
FOB Price
Total price delivered port R.S.A. (CIF)
(= 1+2)
(= 3+4+5+6)
9. Landing charges
32. TOTAL PRICE DELIVERED TO SITE Excl. VAT
(=17+24+27+30)
R
33. VAT
34. Total price delivered to site including VAT
(= 30.1+31)
R
R
-
R
Tenderers to Enter:
1. Vat
Rest of the information pulls through from activity schedules
Note: some rows and columns that appear in the Excel file are hidden in the above extract
7
R
-
R
-
I
O
Summaries:
N
Insulator Summary (rows 3 – 51)
C
COLUMN
D
E
F
G
L
A
SUMMARY OF PRICES EXCLUDING VAT
S
S
SAP
Grouping
Item No
UNIT
S
U
R
G
E
101A
1
101B
1
102A
1
102B
1
Number
H
DESCRIPTION
0167491 INSUL,LINE POST 22KV 4KN LM
D3017
0167492 INSUL,L/ROD 22kV 40kN 450C/L LM
D3042
0167574 INSUL,L/ROD 22kV 40kN 450C/L HVH
D3042
0189400 INSUL:STRAIN STAY 97KN IL 150/60KV
I
Foreign
R
264.78
Local
TOTAL
R
5.00
R
269.78
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
A
R
R
E
S
T
E
R
S
Note: some columns that appear in the Excel file are hidden in the above extract
8
J
Summaries: Insulators Summary (rows 54 – 101)
COLUMN:
G
H
I
J
K
L
M
SUMMARY OF FOREIGN BREAKDOWN
Item No
UNIT
101A
1
101B
1
102A
1
SAP
Number
DESCRIPTION
TOTAL
FOREIGN
Currency (eg Euro)
RoE Currency 1,00 = R
R
0167491 INSUL,LINE POST 22KV 4KN LM
0 D3017
0167492 INSUL,L/ROD 22kV 40kN 450C/L LM
0 D3042
0167574 INSUL,L/ROD 22kV 40kN 450C/L HVH
0 D3042
264.78
Foreign 1
Foreign 2
EUR
USD
Foreign 5
GBP
Foreign 5
CAD
AUD
R
14.22
R
10.97
R
17.83
R
-
R
9.93
R
71.09
R
54.87
R
89.17
R
-
R
49.65
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
R
-
Note: some columns that appear in the Excel file are hidden in the above extract
9
Foreign 3
Activity Schedules: CPA
COLUMN:
PS5 Allocation
1.
1.
1.
1.
1.
Ex Works
Ex Works
Ex Works
Ex Works
Ex Works
Price (Overseas)
Price (Overseas)
Price (Overseas)
Price (Overseas)
Price (Overseas)
1. Ex Works Price (Overseas)
F
J
K
M
PRICE (In
Rands)
PRICE
O
P
Q-T
Currency Type
CPA Formula
Description
5.00
5.00
5.00
5.00
5.00
R
R
R
R
R
5.00
49.65
54.87
71.09
89.17
ZAR
AUD
USD
EUR
GBP
Fixed
Fixed
Fixed
Fixed
Fixed
Firm and Fixed
Firm and Fixed
Firm and Fixed
Firm and Fixed
Firm and Fixed
-
R
-
ZAR
Fixed
Firm and Fixed
Tenderers to Enter CPA per line item:
1. Use drop-down list to select applicable CPA formula per line item into column P
2. Default is “Fixed’ - if left unchanged, offer is Fixed and Firm
CPA Formulae are updated in sheet “Option X 1”
Note: some rows and columns that appear in the Excel file are hidden in the above extract
10
Contract Price Adjustment (CPA)
What is CPA?
• CPA is a mechanism used to track the movement of a contractor’s costs over the Contract
period to provide reasonable reimbursement for price fluctuations.
• CPA determinations are calculated using a pre-determined formula based on the assumed cost
drivers of a particular product or service and a recognised index-based system which tracks
those cost movements over a period of time.
• Prices will be fixed for first year and thereafter CPA will apply from anniversary of contract
onwards.
• Separate CPA invoices are submitted for each base invoice once CPA applies ie CPA is not a
price increase updated on the contract but rather a price adjustment based on the movement in
the applicable index vs the base index
11
Contract Price Adjustment (CPA)………………contd
• 10% Fixed Portion minimum (ie can be more eg 35% Fixed)
• Balance (e.g. 90%) makes use of relevant indices
• Sum of indices adds up to 100%
• No in-house indices allowed
• Proposed indices must be reflective of cost structure
• Final applicable CPA formulae may be negotiated with successful tenderers
12
Option X1: CPA Formulae
FORMULA No:
A
Index
1
2
3
4
5
6
????
The proportions used to calculate the Price Adjustment Factor are:
Proportion Description
Base Date
Source (indices prepared by)
10%
Fixed
10%
Total
Historical Data - Index
yy/mm/dd yy/mm/dd
Kindly check input - must add to 100%
Per Formula (A to M) Submitted, the Tenderers must Enter:
1. Description of CPA Formula
2. For the balance of indices (e.g. 90%) making up each formula:
• % Weights (add up to 100% including minimum 10% Fixed portion)
• Description
• Definition from publisher
• Base month and Index plus Historical data See notes: Instructions)
Note: some rows and columns that appear in the Excel file are hidden in the above extract
13
Option X3: Forex
MULTIPLE CURRENCIES - SECONDARY OPTION X3
No
Currency Description
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Austrialian Dollar
Canadian Dollar
Swiss Franc
Danish Krone
European Currency
British Pound
Hong Kong Dollar
Japanese Yen
Norwegian Krone
New Zealand Dollar
Swedish Krone
Singapore Dollar
United States Dollars
South African Rand
Code
AUD
CAD
CHF
DKK
EUR
GBP
HKD
JPY
NOK
NZD
SEK
SGD
USD
ZAR
Exchange Rate
Date Published
Currency 1,00 =
9.930487
10 Oct 2014
14.217400
17.834300
10 Oct 2014
10 Oct 2014
10.974000
R 1.000000
10 Oct 2014
Source
https://www.resbank.co.za/Res
earch/Rates/Pages/SelectedHi
storicalExchangeAndInterestRa
tes.aspx
Note: Above is the list for which Foreign Exchange Cover can be obtained. Should your
tender be in currency not indicated on this list, kindly contact the Eskom Commercial
Department who will liaise with Eskom Treasury for sanction to use that currency.
14
Activity Schedules
COLUMN:
F
PS5 Allocation
1.
1.
1.
1.
1.
Ex Works
Ex Works
Ex Works
Ex Works
Ex Works
Price (Overseas)
Price (Overseas)
Price (Overseas)
Price (Overseas)
Price (Overseas)
1. Ex Works Price (Overseas)
1. Ex Works Price (Overseas)
J
K
L
PRICE (In
Rands)
PRICE
5.00
5.00
5.00
5.00
5.00
-
M
N
Foreign / Local
Currency Type
RoE Currency
1,00 = R
R
R
R
R
R
5.00
49.65
54.87
71.09
89.17
Local
Foreign
Foreign
Foreign
Foreign
ZAR
AUD
USD
EUR
GBP
1.00
9.93
10.97
14.22
17.83
R
R
-
Local
Local
ZAR
ZAR
1.00
1.00
Exchange rates in sheet Option X1:
1. Accessed from SARB website 7 calendar days before tender closes
http://www.resbank.co.za
Select Research, then Rates, then “Select historical exchange rates and other
interest rates
https://www.resbank.co.za/Research/Rates/Pages/SelectedHistoricalExchangeA
ndInterestRates.aspx
15
Forex Payment Methods
Payment method 1:
Where the contract with a supplier is in a foreign currency and the payment
will be effected in a foreign currency………:
(1a) into the foreign bank account of the beneficiary
(1b) into an SARB-approved CFC account in South Africa
Payment method 2:
In South African Rand at the selling spot rate of exchange obtained by Eskom’s
Treasury on the date that the forward cover is cancelled. Eskom will notify the
supplier of the date that the forward cover is cancelled as well as the intended
payment date, which will be as per the agreed payment terms. Any exchange rate
adjustment after Eskom has notified the supplier of the date and the rate which the
forward cover is cancelled, will be for the account of the supplier.
Fixed Rand:
Provided that the tenderer nominates either Payment Method 1 or 2 as the main
tender offer, an alternative payment method offering a fixed price not subject to
exchange variation may be offered for Eskom's consideration.
16
Forex: Key Concepts
1. Foreign amount being claimed must be proven: commercial invoice for the same
amount
2. Any markup to be charged on top must therefore be in ZAR and not Forex
3. Goods imported into the country for stock are treated as ZAR based
4. Tenderer must be importing the goods directly from overseas and not buying
from a local distributor, otherwise treated as ZAR based
5. Where tenderer proposes a ZAR-based contract (alternative offer), even then
the spot and forward rates must be confirmed with and approved by Treasury
If approved, then Eskom is not responsible for any exchange fluctuations
6. CFC account approval is granted for 1 year at a time; supplier must renew
validity with SARB timeously
Other hedges:
- Commodities are hedged too. We will request full information (volumes and
prices)
- CPA. We will request FRI
17
Preference Points- note for JVs
• BBBEE certificate submitted for preference points must be for the JV and not for
individual entities who are party to the JV
18
Other matters
• Printing settings for all documents are to be adjusted according to Tenderer’s
printer
• Tenderers to please complete the Excel Pricing Schedule, included on the tender
bulletin.
• Apart from the 2 identical hard copies (original and copy), the pricing schedule
must also be submitted in electronic format (CD) in Excel format.
• The hard copies must be submitted and signed by the authorised signatory.
19
Other matters: Financial Analysis
Companies
Signed Independent Auditor’s Report / Reviews Report
Directors’ Report
Statement of Financial Position (comparative figures)
Statement of Comprehensive Income (comparative figures)
Statement of Changes in Equity (comparative figures)
Statement of Cash Flows (comparative figures)
Notes to the Financial statements
Close Corporations
Signed Accounting Officers Report
Members’ Report
Statement of Financial Position (comparative figures)
Statement of Comprehensive Income (comparative figures)
Statement of Changes in Equity (comparative figures)
Statement of Cash Flows (comparative figures)
Notes to the Financial statements
20
Other matters: Financial Analysis……….contd.
Applicable to companies and close corporations
A Signed Guarantee Letter:If a subsidiary which is tendering does not have its own set of financial
statements or its financials are consolidated into that of the Holding
company the Holding company must provide a guarantee letter
which will allow Eskom to utilise its financial information for the purposes
of their subsidiary and to further guarantee any liability which may arise
as a result of a subsidiary failing to perform in terms of the contract
21
Questions
22