The following requirements are applicable in respect of profit/cash flow projections:

(a) The projections must be realistic and achievable to provide investors with information on the issuer's prospects;
(b) The projections must be compiled with utmost care and objectivity; and
(c) Where the projections are subject to high probability of variation, the issuer must provide a sensitivity analysis based on any one of the key variables such as sales price, volume of sales, production costs, production capacity, operating expenses and financing costs.
January 2014