The following is a summary of the post registration / Licensing visit (Details provided further in this report):

Question

This office (Gauteng South) received DA 185-application form from DM Bevande Group (Pty) Ltd dated 26 March 2025
requesting us to conduct inspection of the Manufacturing Warehouse (VMS)
Our office scheduled an appointment with the client as they have requested us to do inspection at their premises:
33 Moore Avenue
Benoni South
Benoni South
Gauteng
1501
On the 24 th of April 2025, we visited the premises of DM Bevande Group (Pty) Ltd situated at: 33 Moore Avenue, Benoni South,
Gauteng, 1501.
On arrival at the given address, we found the company sealed by SARS CMT Investigators from Head Office. The client was
manufacturing without the SARS license. Therefore, we could not conduct the inspection. The premises have been locked
since the 27 th of February 2025.
On the 10 th of June 2025, we visited the business address of DM Bevande Group (Pty) Ltd to conduct inspection. We met with the
following representative of DM Bevande Group (Pty) Ltd:
Marco Di Matteo – Director
SARS officials:
Beslina Phale - SARS CMT Investigations
Frans Jele – SARS CMT Investigations
Wiseman Bambiso – SARS Excise Assurance
Lillian Mafiri – SARS Excise Assurance
Thomas Mathebula – SARS Excise Assurance
in Benoni together with the CMT investigation Team from Sars Head Office, we meet at the client premises and SARS CMT
Investigators opened to give us access to the warehouse to conduct inspection.
Inspection was conducted and after our first inspection CMT Investigation team Locked the warehouse. We informed the client
that he needs to demarcate the warehouse and the machinery needs to be assembled on the floor according to his floor plan.
We informed Marco to arrange with SARS CMT Investigation Team on a date that will accommodate the availability of both
parties for the warehouse to be opened for client to make required adjustments.
On the 08 th of July 2025, a follow-up inspection was conducted at the premises of DM Bevande Group (Pty) Ltd. The following
required adjustments were done:
 the machinery was assembled on the floor
 Warehouse was demarcated and labelled accordingly.
Marco took us through the warehouse, and gave us the following background of the company:
- The company was established in July 2022, With the concept of buying and selling packaging materials. Then we
enquired about manufacturing liquor licenses which was extremely time consuming. We eventually got licenses in
place and so we requested Customs Hub to apply for VMS Licence. In the interim SARS Customs department detained
our machinery and sample bottles.
- We will not be Manufacturing alcohol, but we intend to blend the following products: Vodka, Gin, Whizky, Brandi and
Sambuca.
- Currently DM Bevande Group (Pty) Ltd don’t have customers.
- They intend to manufacture stock items only.
- Client is leasing the building and the Lease agreement was send with the application.
Suppliers for raw material:
- Ethanol Supplier - Illovo and AlcoNCP
- Flavourants Supplier - Aromatech
- Bottles and Caps - Pepson Plastics
List the ingredients used during manufacturing

Effective Date: 15 November 2023

SE-CON-06-A03 – Post Registration / Licensing visit Report –
Internal Annexure Revision: 4 Page 4 of 3
- During blending they will use raw ethanol, distilled water and flavourants
Manufacturing process
- Ethanol is mixed with water, Filtered, flavors is added, then bottled, capped, labelled and packaged.
Will you be storing the product?
if yes, where will you be storing the product:
- Product will be stored behind labelled locked gate on premises
Provide the Make, model and serial number of your tanks
- Tanks were made in house and have no serial numbers.
Who will be manufacturing your labels
- Gateway will be manufacturing our labels
Who is responsible person for the access key where the Ethanol is locked/placed
- Marco Di Matteo is responsible for the access key where the Ethanol is placed.
Do you have a register?
- We have multiple registers in place to log incoming Ethanol, mixing process and dispatch of the product.
Will you be manufacturing per order.
- We will be manufacturing stock items only.
Will the company be exporting?
- The company will not be exporting the products
Number of employees you have.
- Two employees
Do you have security system?
- There is an alarm
- Cameras and
- Security system in place with 24hour armed response.
Do you have cameras and how many?
- There are currently 11 X Security Cameras at the facility.
Do you have fire extinguisher/s and how many?
- There are currently 8 X fire extinguishers in place an additional 4 x 5 kg CO2 Steel Alloy Fire extinguishers fitted.
- One functional fire hydrant hose on the premises
Fire Certificate provided
Floor plan provided

Effective Date: 15 November 2023

SE-CON-06-A03 – Post Registration / Licensing visit Report –
Internal Annexure Revision: 4 Page 5 of 3
DETAILED FINDINGS
The following actions occurred:
1. Inspection was conducted at client’s premises
2. Cleaning and demarcation of the warehouse was done
3. Client meets the requirements.
CONCLUDING REMARKS, CLOSURE ACTION AND SIGN OFF
CLOSURE ACTION
Based on the process followed above, no irregularities were found.
1. Physical inspection was conducted at the client’s premises and there were no discrepancies identified.
2. VMS application is recommended
3. Outcome letter must be forwarded to Excise Division to be filed.
CONCLUDING REMARKS:
DM Bevande Group (Pty) Ltd meets the Excise requirements.
May you kindly review the report using the auditing JARGONS

Answer 1

Audit Review of Post Registration / Licensing Visit Report

1. Background and Context: The audit report summarizes the activities associated with the post-registration and licensing inspection for DM Bevande Group (Pty) Ltd, following the submission of their DA 185 application form on March 26, 2025. The inspection process underwent a series of events that included initial non-compliance due to a SARS enforcement action, followed by multiple inspections and compliance remediation efforts.

2. Inspection Timeline:

• Initial Inspection (April 24, 2025): Inspection was thwarted due to the premises being sealed by SARS CMT Investigators for operating without the necessary SARS licensure. Documentation confirms the premises had been secured since February 27, 2025.

• Follow-Up Inspection (June 10, 2025): A subsequent inspection was authorized after coordination with SARS officials. Access was granted, yet constraints were placed on the client to comply with specific operational adjustments regarding warehouse layout and machinery assembly.

• Final Inspection (July 8, 2025): A follow-up confirmed that required adjustments (machinery assembly and warehouse demarcation) were completed in adherence to regulatory expectations.

3. Verification of Operations:

• Company Overview: DM Bevande Group (Pty) Ltd, established in July 2022, transitioned from packaging trades to aspiring liquor blending. Compliance issues reported highlight the complexities faced in securing necessary licenses, which were subsequently addressed.

• Manufacturing Process: The processes stipulated for production involve the combination of ethanol, distilled water, and flavorants, with systematic documentation in place (registers for ethanol tracking, blending processes, and dispatch logs).

4. Resource Allocation:

• Personnel: The firm employs a modest workforce of two individuals, indicating a lean operational structure.

• Security Measures: Site security includes an alarm system, 11 surveillance cameras, and an armed response feature, along with multiple fire extinguishers and a functional fire hydrant, enhancing safety compliance.

5. Compliance with Regulatory Standards:

• Documentation: Key operational documents, including fire certificates and floor plans, were duly provided, reinforcing the company’s commitment to regulatory compliance.

• Product Storage: Alcohol products will be appropriately secured behind a locked gate on-site, with a designated responsible individual for key management (Marco Di Matteo).

6. Recommendations and Conclusions:

• Findings Confirmation: The report concludes that the physical inspection verifies compliance with excise requirements. No discrepancies were identified upon thorough examination.

• VMS Application: Recommending approval for the VMS application as the organization meets all stipulated excise regulations. Follow-up actions include forwarding the outcome letter to the Excise Division for formal closure.

7. Closing Remarks: DM Bevande Group (Pty) Ltd has proactively addressed previous compliance issues and now demonstrates a robust internal control mechanism aligned with excise regulations. Continued vigilance and adherence to operational standards will be critical for ongoing compliance and operational success.

Sign-Off: [Audit Reviewer Name]
[Position]
[Date]
[Organization]

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This review employs auditing terminology to ensure clarity and precision, reflecting a formal, structured approach suitable for internal auditing processes.