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JSE STXRES
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STXRES - SATRIX RESI - Abridged audited results for the year ended 31 December
2007
SATRIX RESI
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: STXRES
ISIN: ZAE000078622
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
INCOME STATEMENT
for the year ended 31 December 2007
For the year For the
ended 31 ten months
December 2007 ended 31
December
2006
R R
INCOME
Dividend income 6 946 237 3 174 763
Fee income: Scrip lending 417 740 253 381
Interest income 37 581 38 956
7 401 558 3 467 100
Fair value adjustment, net of transaction (560 880) (206 627)
costs
EXPENSES
Management and administrative expenses (835 927) (596 126)
Income available for distribution 6 004 751 2 664 347
Distributions (6 003 386) (2 660 477)
Undistributed income before taxation 1 365 3 870
Taxation - -
Undistributed income attributable to 1 365 3 870
investors
BALANCE SHEET
at 31 December 2007
2007 2006
R R
ASSETS
Listed investments held at fair value through profit 192 916 329 673
and loss 186 118
Trade and other receivables 911 190 196 010
Cash and cash equivalents 654 069 423 857
Total assets 194 481 330 292
445 985
LIABILITIES
Trade and other payables 1 560 024 602 861
Net assets attributable to investors 192 921 329 690
421 124
Total liabilities 194 481 330 292
445 985
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
Undistributable income 3 870 3 870
attributable to investors
Creation of securities 278 863 575 278 863 575
Revaluation of securities 50 822 679 50 822 679
Balance at 31 December 2006 329 686 254 3 870 329 690 124
Undistributable income - 1 365 1 365
attributable to investors
Liquidation of securities (207 267 982) - (207 267 982)
Revaluation of securities 70 497 914 - 70 497 914
Balance at 31 December 2007 192 916 186 5 235 192 921 421
CASH FLOW STATEMENT
for the year ended 31 December 2007
For the year For the
ended 31 ten months
December 2007 ended 31
December
2006
R R
Cash (utilised by)/generated from operations (176 204) 64 106
Dividend income 6 946 237 3 174 763
Interest income 37 581 38 956
Net cash inflow from operating activities 6 807 614 3 277 825
Net cash inflow/(outflow) from investing 206 693 966 (279 057 066)
activities
Purchases of equities (26 299 039) (294 640 079)
Proceeds from sale of equities 232 993 005 15 583 013
Net cash (outflow)/inflow from financing (213 271 368) 276 203 098
activities
(Liquidations)/creations of securities (207 267 982) 278 863 575
Cash distributed to investors (6 003 386) (2 660 477)
Net increase in cash and cash equivalents 230 212 423 857
Cash and cash equivalents at the beginning of 423 857 -
year/period
Cash and cash equivalents at the end of 654 069 423 857
year/period
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 (IASB), 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 are recognised when, and only when, the Satrix
RESI Trust (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 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 the 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.
Future amendments not early adopted in the 2007 annual financial
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.
1.12. 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 16:16:50 Produced by the JSE SENS Department.
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