SHEPHERDS’ ROCK MEMORIAL PARK

BUSINESS PROPOSITION
JABULANI TRUST
SILVER ROAD, CLEVERHILLS
CROWHILL VIEWS
HARARE

SEPT 2017
 SHEPHERDS ROCK MEMORIAL PARK

INDEX PAGE

1. SERVICE PROPOSITION 3

2. CURRENT POSITION 3

3. BUSINESS VIABILITY 4

4. PROJECT MERITS 5

5. HEAD PRODUCTS 6

6. FINANCIAL PROJECTIONS 7

7. FUNDING 11

8. TRUSTEES 11

9. PRELIMINARY WORKS SCHEDULE 12

10. REVENUE STATEMENT 13

11. CASHFOW STATEMENT 14

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1. SERVICE PROPOSITION

Jabulani Trust is duly registered in Zimbabwe and located along Silver Road,
Cleverhills in Borrowdale, Harare. This is about 25 km north of Harare CBD. The Trust
has an opportunity to set up, operate, and maintain a cemetery in Cleverhills area in
Borrowdale Harare. It intends to develop the cemetery to be known as Shepherds
Rock Memorial Park; in line with the provisions of the Cemeteries Act Chapter 5.04.
The Trust will run under the oversight of 5 Trustees, with an Executive secretariat
running the day to day affairs of the organisation. The Trust will be regulated by the
provisions of its Deed of Trust.

2. CURRENT POSITION

The Trust has 6 hectares of land through its partnership with Cleverhill Investments
P/L, earmarked for the development of a private cemetery. The bylaw requirements
for the establishment of a Private Cemetery have since been satisfied. The site map
and design layout has been completed and the plan is ready for implementation.
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The area has a capacity to accommodate 30 000 burial units. The development has
been scheduled as phases. The first phase has about 2000 burial units. It is this phase
that requires funding, as the subsequent phases will be organically funded.

With these interests the Trust is looking for funding in the form of a Loan or a private
placement / investment. The amount required to get the cemetery operating is US
$300 000. The funding options are considered below:

A. LOAN

A loan limits the investor to the agreed return, i.e. interest rate; in this scenario
assumed at 16% p.a. on a draw - down and reduced balance scale. A grace period
of 3 months will be required from the date of first draw down. The interest
relating to the grace period will earn compounded interest.
The loan repayment will be done over 24 months. The actual figures are as
shown in the projected financial projections.

B. PRIVATE INVESTMENT
An investment will allow the investor to participate at a profit share of 30%.
The burial units are anticipated to be sold over 12 years from inception. The
estimated nominal return on investment by investor of $300 000 is $812, 822,
thus about 23% per annum on invested funds.

3. VIABILITY OVERVIEW
It is an apparent fact as asserted by the Harare City Authorities that Harare has
run out of burial space. The City is running with 2 public cemeteries Granville
(Kumbudzi) and Warren Hills; and 2 private ones, Glenforest and Zororo.
Warren hills is already filled up and closed only burials in units pre-purchased are
happening. It is also reported that Granville Cemetery will be full by end of 2017.
These two have been conducting at least 40 burials daily.

Thus Glenforest has only used 10% of its capacity. It conducts about 7 burials per
day.

Zororo which has been recently opened 80 ha along Seke road, has a capacity of
about 240 000 burial units. Currently its average daily burials are 6. Operators of
Zororo have plans to offer funeral services. This will obviously restrict the existing
service providers in the extend they conduct burials at that site.

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Thus, without any other player it is the only two private cemeteries that will give
burial services in Harare, hence their activity will rise to about 53 burials a day. It
should be noted that majority of these burials come through Funeral Service
Providers. Considering the strategy being pursued by Zororo, the existing service
providers will have limited access to its cemetery, leaving them to largely deal
with Glenforest and Shepherds Rock.

Development of Burial places is currently constrained as most land developers

are not keen on them but are motivated by the acute shortage of residential
properties. This compounded by the already non availability of land in Harare,
there are little chances of many cemeteries being developed within the same
distance radius of Shepherds Rock to Harare as to bring more competition.

Shepherds Rock targets an average of 7 burials daily as it starts operations i.e.

13% of the current activities. This is quite conservative given that most service
providers in Harare have already been engaged and indicated their interest to
use and promote Shepherds Rock. A number of funeral service providers have
visited Shepherds Rock site and rated it prime and exclusive. These include
Nyaradzo Funeral Service, Moonlight, Doves, Mushfords and Farewell Funeral
Services.

It is based on this conservative level of activity that the financial projections are
done. However, given the upmarket status it will operate at, Shepherds Rock will
certainly attain higher figures.

Considering at this level the venture is expected to have an annual turnover of

$1, 512, 000 and a net operation profit of $343, 464 in the first 12 months, the
venture is quite viable.

4. PROJECT MERITS

It carries a huge poignant role of hosting and preserving the so much treasured
memories of many.

The Management is open to having the investor appoint its representative to the
Management Board.

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The business carries no risk of loss of revenue from client default since it will run
on prepayment prior to burial. It is a Cash business and its unlikely to face any
liquidity constraints.

The promoters of this business will usher a number of unconventional but

related services, such as full board locations where families may hold funeral
wakes. This is on the back of the fact that affluent people spend huge amounts
on beautifying their homes; but when a funeral wake is held, within 3 days their
gardens are destroyed and the paints are all dirty as many people attend the
wake. The said services will save many people money and time yet significantly
increasing income streams to this venture.

This venture will create 17 direct jobs and a large number of downstream
employments too. It will operate with a Curator, 12 Diggers / Burial assistants
and 4 Administration personnel.

Various downstream businesses and workers will be supported by the activities

of Shepherds Rock: Builders, Tombstone makers, Flower merchants, Security
firms etc.

5. SERVICE HEAD PRODUCTS

Shepherds Rock Memorial Park (SRMP) will run with 5 main products;

i. ELITE SECTION

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This is an exclusive and prime section whose aesthetics are for the affluent. These
include backfilling compaction at burial to allow for immediate installation of tomb
stone. The section is given exclusive maintenance of the graves. The price for a single
burial space in this section is $2000. This section will have both single and double
burial graves. The double burial grave will go for $2500.

ii. FAMILY PLOT

Size and grave population for this product is determined by client. Pricing is
determined using the theoretical population of the standard / traditional grave size
and spacing.

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iii. COMMON SECTION

This comprises of the traditional standard 3.7sqm graves priced at $450 each.

iv. CREMATORIUM

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The service provides a chapel and cremation services at $1200 per body regardless of size
and age of deceased.

v. FUNERAL WAKE/ MEMORIAL HOSTING POINTS

vi.

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Shepherds Rock Memorial Park will have places and facilities that will be hired
out, where bereaved families may gather for funeral wakes / memorial serves.

6. FINANCIAL PROJECTIONS

A. CAPITAL OUTLAY FOR PRELIMINARY WORKS

Access Roads & Paths $166, 396

Office Block & Reception Area $ 23, 250

Furniture & Equip $ 5, 000

Perimeter fence $ 17, 905

Water & Electricity Reticulation $ 7, 000

Burial Units x 210 $ 16, 078

Working Capital $ 64, 371

------------

TOTAL INITIAL CAPITAL OUTLAY $300, 000

=========

It is anticipated that the funding will come from a private placement who will take a profit
share participation for their investment.

B. INCOME

A total of 30, 000 standard burial units will be created with about 2520 sold per year at an
average price of $600 each.

The venture will generate a minimum turnover of $ 1, 512, 000 and a 22% profit per year.
The major business of selling burial units is anticipated to run for 12 years.

Other ancillary income from related activities has not been considered for prudence sake.

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C. EXPENDITURE

The cost drivers as a % of revenue are:

Burial Space - 50%

Burial Unit preparation – 12%

Operating costs – 16%

7. FUNDING

For the purposes of these financial projections the private investment scenario has been
assumed since it has more sensitivity at 28% p.a. than the 16% p.a. interest payable.

8. TRUSTEES

Muchengeti Kutsirai (Mr.)

A holder of a HND in Accounting and is a MBA student with Midlands State University. He
has worked as a Director, in various Industries that include manufacturing, commercial and
Services.

He has in-depth experience covering 8 years in finance: financial reporting, supervising

budgets and staff, taxation issues and secretarial matters.

He has also over the years held various executive portfolios that include; Operations,
Business Development and Commercial Services.

Matibwira (Mr.)

Tonderai Matsekwa (Mr.)

Business Contact Person : Muchengeti Kutsirai

Cell - 0772 350 215;

Email – kutsiraim@gmail.com

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9. GANTT CHART FOR PRELIMINAY WORKS

Gantt Chart/Work Schedule

SEP 01-Oct 25-Oct 26-Oct 01-Nov 01-Dec 09-Jan
Day No. 1 2 3 4 5 6 7 8 9 10 11 14 15 16 17 20 21 25 26 31 32 56 57 63 93 100 101
Activity

ROAD INTERNAL 300M

Subgrade preparation upto 150mm with Grader
Subgrade wetting & Compaction
Gravel Excavation
Gravel Loading & Tippers
Gravel Spreading, Watering & Compaction
Crusher-run Loading
Tippers & Crusher run Spreading
Cement mixed Crusher run, Watering & Compaction
ROAD EXTERNAL 3KM
Subgrade preparation upto 150mm with Grader
Subgrade wetting & Compaction
Gravel Excavation
Gravel Loading & Tippers
Gravel Spreading, Watering & Compaction
RTHG
Tippers & Crusher run Spreading
Cement mixed Crusher run, Watering & Compaction
OFFICE SITE
Abulutions
Parking Area and garden
Furniture & Equipment

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10. INCOME STATEMENT

SHEPHERDS ROCK MEMORIAL PARK

PROJECTED REVENUE STATEMENT
ACTIVITY Sep-17 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG TOTAL
QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY
SALE IN UNITS
Starndard unit 210 210 210 210 210 210 210 210 210 210 210 210 2,520
Crematorium - - - - - - - - - - - - -
TOTAL UNITS 210 210 210 210 210 210 210 210 210 210 210 210 2,520
PRICE PER UNIT
Starndard Grave 600 600 600 600 600 600 600 600 600 600 600 600 600
Crematorium 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
REVENUE
Starndard Unit 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 1,512,000
COPERATING COSTS
Advertising & Promotions 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 18,900
Burial Space Cost 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 756,000
Product preparation - 16,078 16,078 16,078 16,078 16,078 16,078 16,078 16,078 16,078 16,078 16,078 176,854
Services Inputs - Crematorium etc - - - - - - - - - - - - -
Internal Road Surfacing 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 135,663
Road Maintenance 3km - - - - - - - - - - - - -
Perimeter Wall 1000m - 820 820 820 1,641 1,641 1,641 1,641 1,641 1,641 1,641 1,641 15,585
Communication 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Bank Charges 55 55 55 150 150 150 150 150 150 150 150 150 1,515
Printing & Stationery 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Premises maintenance 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 15,120
Salaries & Wages 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 22,800
Trustee fees 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 18,900
Insurances 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Cleaning & sanitation 50 50 50 50 50 50 50 50 50 50 50 50 600
TOTAL 69,965 99,196 99,196 99,291 100,111 100,111 100,111 100,111 100,111 100,111 100,111 100,111 1,168,536
PROFIT /(LOSS) 56,035 26,804 26,804 26,709 25,889 25,889 25,889 25,889 25,889 25,889 25,889 25,889 343,464

OPERATIONAL income & COST RATIONALE

Profit for the first year is $343,464

Est Distributable Profit in first year is $309,117

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11. CASHFLOW STATEMENT

SHEPHERDS FIELD MEMORIAL PARK
PROJECTED CASH FLOW STATEMENT
ACTIVITY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL

REVENUE COLLECTIONS
Opening Balance - 69,975 72,656 75,336 78,007 80,596 83,185 85,774 88,363 90,951 93,540 96,129 -
Collections 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 1,512,000
Injection 300,000 300,000
Total Cash Available 426,000 195,975 198,656 201,336 204,007 206,596 209,185 211,774 214,363 216,951 219,540 222,129 1,812,000
PAYMENTS
Capital Outlay 235,628 - - - - - - - - - - - 235,628
Advertising & Promotions 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 18,900
Burial Space Cost 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 63,000 756,000
Grave preparation - 16,078 16,078 16,078 16,078 16,078 16,078 16,078 16,078 16,078 16,078 16,078 176,854
Services Inputs - Crematorium etc - - - - - - - - - - - - -
Internal Road Surfacing - 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 135,663
Road Maintenance 3km - - - - - - - - - - - - -
Perimeter Wall 3000m 820 820 820 1,641 1,641 1,641 1,641 1,641 1,641 1,641 1,641 15,585
Communication 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Bank Charges 55 55 55 150 150 150 150 150 150 150 150 150 1,515
Printing & Stationery 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Premises maintenance 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 15,120
Salaries & Wages 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 22,800
Trustee fees 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 1,575 18,900
Insurances 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Cleaning & sanitation 50 50 50 50 50 50 50 50 50 50 50 50 600
TOTAL 305,593 99,196 99,196 99,291 100,111 100,111 100,111 100,111 100,111 100,111 100,111 100,111 1,404,165
SURPLUS /(DEFICIT) 120,407 96,779 99,460 102,045 103,896 106,485 109,074 111,663 114,252 116,840 119,429 122,018 407,835
PAYOUTS
Develeopment partners 50,432 24,124 24,124 24,038 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 309,117
CLOSING BALANCE 69,975 72,656 75,336 78,007 80,596 83,185 85,774 88,363 90,951 93,540 96,129 98,718 98,718

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