FIN3703 Assignment 2 Semester 1 2026 - Due April 2026

Dalton Ltd: A Giant Leader in the JoJo Tank Market Dalton Ltd is the third-largest South African manufacturer of high-quality JoJo tanks, with its head office in Midrand. The company owns four branches: one in Naturena, one in Ennerdale, one in Pachuca, and one in Roodepoort. Although the market for JoJo tanks has been expanding rapidly, Dalton Ltd could not share in this growth due to technical problems with the current machine. To increase production and sales, the company is considering replacing its current injection moulding machine with a more advanced model, which will cost R. The funds will be raised as a loan from Standard Bank at a fixed interest rate of 11.75% per annum. In financing working capital, the company secured a total revolving credit limit of R170 000 from Capitec Bank at an interest rate of 12.2% per annum. REQUIRED: Mac Robert, the chief executive officer (CEO) at Dalton Ltd, appointed you (FIN3703 student) at the head office as a treasurer to replace the old injection moulding. The human resources department provided you with a detailed document that, among other lists the following treasurer performance agreement areas (KPAs): KEY PERFORMANCE AREA (KPA) ▪ Advise on the recruitment of treasury department personnel. ▪ Ensure the implementation of GAAP. ▪ Provide strategic leadership in the treasury office of the company. ▪ Setting overall strategic organisational goals and objectives. ▪ Cash and liquidity management. ▪ Banking relationship management. ▪ Corporate treasury risk management. P a g e 3 | 20 Dalton Ltd: A Giant Leader in the JoJo Tank Market Dalton Ltd is the third-largest South African manufacturer of high-quality JoJo tanks, with its head office in Midrand. The company owns four branches: one in Naturena, one in Ennerdale, one in Pachuca, and one in Roodepoort. Although the market for JoJo tanks has been expanding rapidly, Dalton Ltd could not share in this growth due to technical problems with the current machine. To increase production and sales, the company is considering replacing its current injection moulding machine with a more advanced model, which will cost R. The funds will be raised as a loan from Standard Bank at a fixed interest rate of 11.75% per annum. In financing working capital, the company secured a total revolving credit limit of R170 000 from Capitec Bank at an interest rate of 12.2% per annum. REQUIRED: Mac Robert, the chief executive officer (CEO) at Dalton Ltd, appointed you (FIN3703 student) at the head office as a treasurer to replace the old injection moulding. The human resources department provided you with a detailed document that, among other lists the following treasurer performance agreement areas (KPAs): KEY PERFORMANCE AREA (KPA) ▪ Advise on the recruitment of treasury department personnel. ▪ Ensure the implementation of GAAP. ▪ Provide strategic leadership in the treasury office of the company. ▪ Setting overall strategic organisational goals and objectives. ▪ Cash and liquidity management. ▪ Banking relationship management. ▪ Corporate treasury risk management. P a g e 3 | 20