LR Shop (Pty) Ltd - Execution Plan - February 2021 to February 2022- signed

Execution plan for February 2021 to February 2022 Client Name: LR Shop (Pty) Ltd Address: 7 Hendon Road, Athlone, Cape Town, 7764 Date: 1 February 2021 Attention: Directors Dear Sir/Madam The purpose of the document is to provide you with a forward view of the required deliverables for the period February 2021 to February 2022. The plan is based on the outcomes realised by the company over the last 12 months, as well as the strategic and operational plan the company has indicated they intend taking based on the last 12 months.

Service Provider Change ARP Finance and Thought Consulting will be operating independently going forward, however the deliverable requirements and process will not change. You have requested that all services remain with Lutfiya and Anika and we will proceed to do so. The only change will be, Thought Consulting Services will be the Administrative company and not ARP Finance. Therefore, all billings will be made in the name of Thought Consulting Services (Pty) Ltd. Please refer to our website: www.thoughtconsulting.co.za (will be fully operational within the next two weeks) Risk Assessment As part of our value proposition to your company, we perform a continuous risk assessment of your business even after services has been delivered. This allows us to understand your company continuously, so when you require a service, our delivery is based on your actual business and not a broad perspective of business operating in your industry. Our services are therefore always tailored to your actual risks, within relative terms to overall business and market risk.

Risk identified over the last 12 months: Growth Risk 1. The company performed above all expectations over the last 12 months. It has been communicated that a ceiling could potentially exist, and we will need to understand how far we are from that potential ceiling point.

2. The impact on costs, cash flow, and profit sustainability will need to be considered.

Taxation 1. Vat impact on operational cash flows.

2. The first quarter (3 month) review will be significant to understand what adjustments may be required in light of Vat impact. MUST BE UNDERSTOOD – VAT IS NOT THE COMPANIES MONEY AND CANNOT BE CONSIDERED IN CASH FLOW PLANNING. 3. Tax liability – the stock on hand will give rise to a liability, and this needs to be factored into cash flow planning.

Stock Management 1. Stock processes will need to be considered. This was raised by yourselves during the business assessment discussion. Your system must be clearly defined and documented for process purposes.

2. Control process for stock purchases and sales. This was again raised in the Business assessment discussion in October 2020.

Resource Development 1. During the HR assessment it was noted that resource development is crucial and needs to be managed correctly.

2. This led to Aneeqah, Wierzah, and Dash attending training.

3. We will present additional resource development training during the year, however, my recommendation is that it would need to be specific to your company and should revolve around process and decision-making so the benefit can be realised immediately in your business processes. I am open to working with you on this and using your actual business challenges as the case study. This allows for outcomes discussed in session to be applied on your actual business immediately.

4. Key performance indicators for decision makers as well as clearly defined roles and responsibilities.

Cash Flow Management 1.

2.

3.

4.

This will be your significant risk as we are heading into an uncertain 6 to 7 months.

Cash flows management based on operational cycle will be key.

Mitigation metrics will need to be considered carefully at each decision-making point.

Forecasting by month will be key.

5. We may need to consider a possible forecasting approach that would best suit your company.

Overall Business Risk 1. Decision-making risk in uncertain times.

2. Advertising mechanisms – Instagram etc.

3. What key changes are required to ensure the business can absorb unplanned shocks during uncertain times.

The deliverables for execution are as follows: February 2021 #

Deliverable Description

Timeframe for delivery

1

Vat 101 – Process to commence and documentation requirements will be presented. The company needs to be prepared to have all information readily available during the application process as any misalignment could have impacts. AB Dramat will assist us in facilitating the process.

By before 28 February 2021

2

PAYE submission

By before 28 February 2021

3

Provisional Tax submission

By before 28 February 2021

March 2021 #

Deliverable Description

Timeframe for delivery

1

Submission of management accounts to commence AFS preparation and sign off for Vat application

By before 09 March 2021

2

AFS compilation and sign off – subject to all information being provided.

By before 23 March 2021

3

Vat application submission – subject to appointment date.

The delivery of 1 and 2 above could change based on the confirmed Vat 101 appointment date.

By before 31 March 2021

June 2021 #

Deliverable Description

Timeframe for delivery

1

Management account review and cash flow assessment

By before 30 June 2021

2.

Possible first vat 201 submission based on application process. Subject to change based on SARS conclusion of vat application.

By before 30 June 2021

August 2021 # 1

Deliverable Description Provisional Tax submission

Timeframe for delivery By before 31 August 2021

September 2021 #

Deliverable Description

Timeframe for delivery

1

Half year management account review and year end forecast based on actual results. Planning commences for year end, similar to 2020 financial year planning.

By before 30 September 2021

2

Tax liability for February 2021 is due – payment must reflect in SARS bank account by the 30th of the month to ensure compliance and avoid any interest and penalties.

By before 30 September 2021

October 2021 # 1

Deliverable Description Risk mitigation execution to commence based on September review. This is subject your approval and requirements.

Timeframe for delivery By before 31 October 2021

January 2022 # 1

Deliverable Description Year-end planning.

Timeframe for delivery By before 31 January 2022

Summary It needs to be noted that the above is an execution plan based on the best information available today. The above can change significantly based on the actual events, and in light of us operating in an uncertain time, we will need to be open minded and cautious in our decision making. We will have to ensure that our decisions are as close to pre-emptive as can be, and limit our reactions as best as we can.

This may not be always possible; however, we will need to apply our minds collectively to ensure the best decisions are made based on the available information at any given point in time.

Regards,

Zuhayr Dollie Thought Consulting Services (Pty) Ltd