| Fri 28 Mar 2008, 16:18 | | STX40 - SATRIX 40 - Abridged audited results for the year ended 31 December 2007 |
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JSE STX40
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STX40 - SATRIX 40 - Abridged audited results for the year ended 31 December 2007
SATRIX 40
A portfolio in the Satrix Collective Investment Scheme ("Satrix"), registered as
such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (the
"Act")
JSE code: STX40
ISIN CODE: ZAE000027108
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
INCOME STATEMENT
for the year ended 31 December 2007
2007 2006
R R
REVENUE
Dividend income 128 831 436 143 229 910
Fee income: Securities lending 10 188 028 10 186 383
Interest income 1 475 992 1 772 056
140 495 456 155 188 349
Fair value adjustments, net of transaction (1 554 198) (6 085 554)
costs
Futures: Market-to-market adjustment (16 132) 206 084
EXPENSES
Management and administrative expenses (18 016 261) (14 729 487)
Income available for distribution 120 908 865 134 579 392
Distributions (120 933 (134 569
595) 034)
Undistributed (loss)/income before taxation (24 730) 10 358
Taxation - -
Undistributed (loss)/income attributable to (24 730) 10 358
investors
BALANCE SHEET
at 31 December 2007
2007 2006
R R
ASSETS
Listed investments held at fair value through 5 000 269 6 069 776 691
profit and loss 497
Trade and other receivables 46 852 884 48 273 396
Cash and cash equivalents 14 862 381 16 834 978
Total assets 5 061 984 6 134 885 065
762
LIABILITIES
Trade and other payables 59 343 962 62 647 633
Net assets attributable to investors 5 002 640 6 072 237 432
800
Total liabilities 5 061 984 6 134 885 065
762
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2007
Capital Income Total
attributable attributable
to investors to investors
R R R
Balance at 1 January 2006 5 251 825 2 385 675 5 254 210
323 998
Undistributed income attributable 10 358 10 358
to investors
Liquidation of securities (1 057 792 (1 057 792
347) 347)
Revaluation of securities 1 875 808 1 875 808
423 423
Balance at 31 December 2006 6 069 841 2 396 033 6 072 237
399 432
Undistributed loss attributable (24 730) (24 730)
to investors
Liquidation of securities (1 921 035 (1 921 035
550) 550)
Revaluation of securities 851 463 648 851 463 648
Balance at 31 December 2007 5 000 269 2 371 303 5 002 640
497 800
CASH FLOW STATEMENT
for the year ended 31 December 2007
2007 2006
R R
Cash utilised by operations (9 727 524) (5 430 731)
Dividend income 128 831 436 143 229 910
Interest income 1 475 992 1 772 056
Net cash inflow from operating activities 120 579 904 139 571 235
Net cash inflow from investing activities 1 919 416 1 051 294
644 155
Purchases of equities (500 746 (432 190
192) 609)
Proceeds from sale of equities 2 420 162 1 483 484
836 764
Net cash outflow from financing activities (2 041 969 (1 192 361
145) 381)
Liquidation of securities (1 921 035 (1 057 792
550) 347)
Cash distributed to unitholders (120 933 (134 569
595) 034)
Net decrease in cash and cash equivalents (1 972 597) (1 495 991)
Cash and cash equivalents at the beginning of 16 834 978 18 330 969
year
Cash and cash equivalents at the end of year 14 862 381 16 834 978
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2007
1. Accounting policies
The financial statements incorporate the principal accounting
policies set out below, which are consistent with those adopted in
the previous financial year, other than as set out in 1.12.2
1.1 Basis of preparation
The financial statements are prepared on the historic cost basis,
except for financial instruments, which are accounted for as set out
in note 1.3.
1.2 Statement of compliance
The financial statements are prepared in accordance with
International Financial Reporting Standards issued by the
International Accounting Standards Board, and in accordance with the
requirements of the Trust Deed and Collective Investment Schemes
Control Act No 45 of 2002.
1.3 Financial instruments
Measurement
Financial instruments, being securities and futures, are recognised
when, and only when, the Trust becomes a party to the contractual
provisions of that particular instrument. Financial instruments are
initially measured at fair value, and for instruments not at fair
value through profit and loss, any directly attributable transaction
costs.
Subsequent to initial recognition these instruments are measured as
set out below.
Investments
Listed investments are measured at fair value through profit and
loss. Fair value is determined with reference to quoted market
prices at the balance sheet date, as published in the financial
press at reporting date.
Trade and other receivables
Trade and other receivables originated by the Satrix 40 Trust (The
Trust) are measured at amortised cost using the effective interest
method, less impairment losses. Trade and other receivables are
short term in nature and are not discounted.
Cash and cash equivalents
Cash and cash equivalents are measured at amortised cost.
Financial liabilities
Financial liabilities, other than those held at fair value through
profit and loss, are measured using the effective interest method.
Financial liabilities arising from the securities issued by the
Trust are carried at the fair value representing the investor`s
right to a residual interest in the Trust`s net assets, i.e. the Net
Asset Value of the Trust.
Fair value gains and losses on subsequent measurement
Unrealised gains and losses arising from a change in the fair value
of financial instruments are included in net profit or loss in the
period in which the change arises.
Offset
Financial assets and financial liabilities are offset and the net
amount reported in the balance sheet when the Trust has a legally
enforceable right to set off the recognised amounts, and intends
either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
Derecognition of financial instruments
The Trust derecognises financial assets when and only when:
The contractual rights to the cash flows arising from the financial
assets have expired or have been forfeited by the Trust; or
It transfers the financial assets including substantially all the
risks and rewards of ownership of the assets; or
It transfers the financial assets, neither retaining nor
transferring substantially all the risks and reward of ownership of
the asset, but no longer retains control of the assets.
A financial liability is derecognised when and only when the
liability is extinguished, this is, when the obligation specified in
the contract is discharged, cancelled or has expired.
The difference between the carrying amount of a financial liability
(or part thereof) extinguished or transferred to another party and
consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in the income statement.
1.4 Revenue
Revenue comprises income from securities lending activities and
investment income.
Securities lending fee income
The fees earned for the administration of securities lending
activities are accounted for on an accrual basis in the period in
which the service is rendered.
1.5 Investment income
Interest income is recognised in the income statement, using the
effective rate method taking into account the expected timing and
amount of cash flows.
Dividends in the form of cash and manufactured dividends are
recognised when the right to receive payment is established.
1.6 Taxation
Under the current system of taxation in South Africa, the Trust is
exempt from paying tax on income or capital gains. Both income and
capital gains are taxed in the hands of the investors.
1.7 Securities lending
The portfolio engages in securities lending activities up to 70% of
the assets under management. Collateral is held by the relevant
lending desks.
Manufactured dividends received are recognised as income in the
income statement.
1.8 Expenses
Expenses are recognised as incurred.
1.9 Impairment
Financial assets that are stated at cost or amortised cost are
reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such indication exists, an
impairment loss is recognised in the income statement as the
difference between the asset`s carrying amount and the present value
of estimated future cash flows discounted at the financial asset`s
original effective interest rate. If in a subsequent period the
amount of an impairment loss recognised on a financial asset carried
at amortised cost decreases and the decrease can be linked
objectively to an event occurring after the write down, the write
down is reversed through the income statement.
1.10 Finance costs
Distributions payable on redeemable units are recognised in the
income statement as finance costs under distributions.
1.11 Redeemable securities
All redeemable securities issued by the scheme provide investors
with the right to require redemption for cash or in specie at the
value proportionate to the investors` share. Such instruments give
rise to a financial liability for the net asset value of the
redemption amount in the Trust`s net assets at redemption date. In
accordance with the Trust Deed and Collective Investment Schemes
Control Act, the Trust is contractually obliged to redeem securities
at the net asset value.
1.12 Forthcoming requirements
1.12. Amendments adopted in the 2007 annual financial statements
1
The following standards, amendments to standards, and
interpretations, effective for the first time in the current
accounting period, and which are relevant to the Trust, have been
adopted in these financial statements:
IAS 1 amendment, `Additional disclosures in relation to an entity`s
capital` (effective 1 January 2007);
IFRS 7 `Financial Instruments: Disclosures` (effective 1 January
2007). IFRS 7 supersedes IAS 32 `Financial Instruments: Disclosure
and Presentation`. In particular, IFRS 7 requires additional
disclosure over and above that required by IAS 32 in respect of :
The significance of financial instruments for an entity`s financial
position and performance; and
The nature and extent of risks arising from financial instruments;
and
Capital objectives and policies.
1.12. Future amendments not early adopted in the 2007 annual financial
2 statements
The following standards, amendments to standards, and
interpretations, effective in future accounting periods, and which
are relevant to the Trust have not been early adopted in these
financial statements:
IAS 1 `Presentation of Financial Statements` (effective 1 January
2009). The changes include a comprehensive revision of primary
statements, and include a requirement to introduce a statement of
comprehensive income. There will be some limited presentational
changes as a result of the introduction of this standard but no
changes in measurement or recognition.
IAS 39 Financial Instruments: Puttable at fair value. The amendments
to IAS 32 address this issue and require entities to classify the
following types of financial instruments as equity, provided they
have particular features and meet specific conditions:
Puttable financial instruments (for example, some shares issued by
co-operative entities); and
Instruments, or components of instruments, that impose on the entity
an obligation to deliver to another party a pro rata share of the
net assets of the entity only on liquidation (for example, some
partnership interests and some shares issued by limited life
entities). Additional disclosures are required for the instruments
affected by the amendments. The amendments will apply for annual
periods beginning on or after 1 January 2009, with earlier
application permitted.
1.13 Comparative figures
Where necessary, comparative figures have been reclassified for
presentation purposes. The reclassifications include:
Statement of changes in net assets attributable to investors, where
the investor liability has been split to disclose the capital and
income components.
Cash flow statement, where liquidations and creations of securities
as well as distributions to investors have been reclassified from
investing activities to financing activities.
These financial statements have been audited by the independent auditors,
KPMG Inc., and their unqualified audit opinion is available for inspection
at the company`s registered office. A full copy of these annual financial
statements is available on the Satrix website www.satrix.co.za.
28 March 2008
Sponsor
Java Capital (Proprietary) Limited
Trustee
ABSA Bank Limited
Date: 28/03/2008 16:18:54 Produced by the JSE SENS Department.
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