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Abridged Audited Results - PTXSPY
GRINDROD INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT: GRINDROD PROPTRAX SAPY
ABBREVIATED NAME: PROPTRAX SAPY
SHARE CODE: PTXSPY
ISIN CODE: ZAE000101911
ABRIDGED AUDITED RESULTS FOR PROPERTY INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME AND PROPERTY INDEX TRACKER MANAGERS PROPRIETARY LIMITED
ABRIDGED AUDITED RESULTS FOR PROPERTY INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME FOR THE PERIOD ENDED 30 SEPTEMBER 2014
STATEMENT OF FINANCIAL POSITION
as at 30 September 2014
30 September 30 June
Notes 2014 2013
R R
ASSETS
CURRENT ASSETS
Listed investments held at fair value 1 116,964,158 117,370,510
Dividends receivable 73,003 -
Cash and cash equivalents 1 2,731,032 1,345,836
TOTAL ASSETS 119,768,193 118,716,346
EQUITY AND LIABILITIES
CURRENT LIABILITIES
Net assets attributable to investors 2 119,037,251 118,398,383
Trade and other payables 4 730,942 317,963
TOTAL EQUITY AND LIABILITIES 119,768,193 118,716,346
STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 September 2014
15 months 12 months
30 September 30 June
Notes 2014 2013
R R
Distribution income 8,631,133 6,775,485
Interest Income 2,062,983 23,645
Investment income 10,694,116 6,799,130
Other income 58,398 1,070
Total income 10,752,514 6,800,200
Management and administration expenses (1,498,405) (1,276,722)
Income available for distribution 3 9,254,109 5,523,478
Distributions paid (7,890,605) (5,376,447)
Change in net assets attributable to investors 1,363,504 147,031
STATEMENT OF CHANGES IN EQUITY
for the period ended 30 September 2014
Capital Accumulated
Notes Contributions Profit/ (Loss) Total
R R R
Balance at 30 June 2012 131,827,343 1,116,967 132,944,310
Liquidation of 300 000 units on 18 July 2012 (13,921,448) - (13,921,448)
Liquidation of 200 000 units on 21 August 2012 (9,747,627) - (9,747,627)
Liquidation of 200 000 units on 4 September 2012 (10,298,793) - (10,298,793)
Liquidation of 200 000 units on 17 October 2012 (9,685,976) - (9,685,976)
Liquidation of 100 000 units on 14 December 2012 (5,014,523) - (5,014,523)
Creation of 100 000 units on 15 January 2013 5,018,089 - 5,018,089
Creation of 100 000 units on 3 April 2013 5,336,201 - 5,336,201
Creation of 100 000 units on 7 May 2013 5,771,189 - 5,771,189
Change in net assets attributable to investors
17,925,699 147,031 18,072,730
Cumulative distributions paid on liquidated units
(75,769) (75,769)
Balance at 30 June 2013 117,210,154 1,188,229 118,398,383
Creation of 100 000 units on 03 September 2013 4,905,344 - 4,905,344
Net asset value adjustment 382,300 (382,300) -
Liquidation of 100 000 units on 6 January 2014 (4,987,538) - (4,987,538)
Liquidation of 100 000 units on 19 March 2014 (4,879,520) - (4,879,520)
Change in net assets attributable to investors 4,237,078 1,363,504 5,600,582
Balance at 30 September 2014 116,867,818 2,169,433 119,037,251
STATEMENT OF CASH FLOWS
for the period ended 30 September 2014
15 months 12 months
30 September 30 June
Notes 2014 2013
R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash utilised by operations
A (4,353,056) (1,726,554)
Distribution income
8,631,133 7,158,603
Distributions paid
B (7,890,605) (5,452,216)
Interest income
2,062,983 23,645
Net cash (outflow)/inflow from operating activities
(1,549,545) 3,478
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
(37,348,981) (29,684,059)
Proceeds from sale of investments
45,245,437 62,118,294
Net cash inflow from investing activities
7,896,455 32,434,235
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received
4,905,344 16,125,479
Contributions repaid
(9,867,058) (48,668,367)
Net cash outflow from financing activities
(4,961,714) (32,542,888)
NET INCREASE/(DECREASE) IN CASH
1,385,196 (105,175)
Cash at beginning of period
1,345,836 1,451,011
CASH AT END OF PERIOD
2,731,032 1,345,836
ACCOUNTING POLICIES
for the period ended 30 September 2014
The financial statements have been prepared consistently on the following principal accounting policies:
1. Basis of Preparation
The financial statements are prepared on a historic cost basis, except for financial instruments, which are
accounted for as set out in note 4.
The financial statements are prepared in accordance with International Financial Reporting Standards
(“IFRS’’), its interpretations adopted by the International Accounting Standards Board (“ÏASB”), the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting
Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings Requirements, the
requirements of the Trust Deed and the Collective Investment Schemes Control Act, 45 of 2002 ("the Act").
At the date of approval of the annual financial statements, the following new standards, interpretations and
amendments that apply to the group were in issue but not yet effective:
New standards
IFRS 9 - Financial Instruments - Effective for annual period beginning on or after 1 January 2018
IFRS 10 - Investment entities - Effective for annual period beginning on or after 1 January 2014
IFRS 12 - Investment entities - Effective for annual period beginning on or after 1 January 2014
IFRS 14 - Regulatory deferral accounts- Effective for annual period beginning on or after 1 January 2016
IFRS 15 - Revenue from contracts with customers - Effective for annual period beginning on or after 1 January
2017
Amendments to existing standards
IFRS 11 - Accounting for acquisitions of interests in joint operations - Effective for annual period beginning on
or after 1 January 2016
IAS 38 - Clarification of acceptable methods of depreciation and amortisation - Effective for annual period
beginning on or after 1 January 2016
2. Functional and reporting currency
The financial statements are presented in Rands which is the functional currency of the scheme.
3. Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
judgements and assumptions that affect the reported amounts. It also requires management to exercise its
judgement in the Scheme’s process of applying the accounting policies. Actual results may vary from these
estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions
or estimates are significant.
4. Financial Instruments
Measurement
Financial instruments are recognised when, and only when, the Fund becomes a party to the contractual
provisions of that particular instrument. Financial instruments are initially measured at fair value, which except
for financial instruments not at fair value through profit and loss, include direct attributable transaction costs.
Subsequent to initial recognition, these instruments are measured as set out below.
Investments
Listed investments are measured at fair value. Fair value is determined with reference to quoted market prices at
the reporting date, as published in the financial press at the reporting date.
Trade and other receivables
Trade and other receivables originated by the Fund are measured at amortised cost using the effective interest
method, less impairment losses. Trade and other receivables are short term in nature.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
Financial liabilities
Financial liabilities, other than those held at fair value through profit or loss, are measured at amortised cost
using effective interest rate method. Financial liabilities arising from the securities issued by the Fund are
carried at the fair value representing the investor’s right to a residual interest in the Fund’s net assets, i.e. the net
asset value of the Scheme. Changes in the fair value are included in net profit or loss in the year in which the
change arises.
Fair value against and losses on subsequent measurement
Unrealised gains and losses arising from a change in the fair value of financial instruments are included in
statement of net assets attributable to investors.
Offset
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial
position when the Fund has a legally enforceable right to set off the recognised amounts, and intends to settle on
a net basis, or to realise the asset and settle the liability simultaneously.
Derecognition of financial instruments
The Fund 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 Fund; 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 rewards
of the ownership of the asset, but no longer retains control of the asset.
A financial liability is derecognised when and only when the liability 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 profit or loss.
5. 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
year in which the service is rendered. Assets subject to securities lending are not derecognised.
Investment income
Interest income is recognised in the statement of profit or loss and other comprehensive income, using the
effective rate method taking into account the expected timing and amount of cash flows.
Distribution income in the form of cash and manufactured dividends are recognised when the right to receive
payment is established. Manufactured dividends received are recognised as income in profit or loss.
6. Income tax
Under the current system of taxation in South Africa, the Fund is exempt from paying tax on income or capital
gains. Both income and capital gains are taxed in the hands of investors.
7. Securities lending
The portfolio engages in securities lending activities up to 50% of the assets under management. Collateral is
held by the relevant lending desks. There was no lending activity at year end.
8. Expenses
Expenses are recognised on the accrual basis.
9. Impairment
Financial assets that are stated at amortised cost are reviewed at each reporting date to determine whether there
is objective evidence of impairment. If any such indication exists, an impairment loss is recognised in profit or
loss 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 impairment loss is reversed through profit or
loss.
10. Distributions
Distributions payable on redeemable units are recognised in profit or loss as distributions.
In accordance with the Trust's Deed, the Portfolio distributes its distributable income and any other amounts
determined by the Fund Managers, to security holders in cash. The distributions are payable shortly after the
end of each quarter and recognised in the statement of comprehensive income and as distributions.
11. Creations and redemptions
Investors can acquire the Fund's securities by trading on the JSE. These purchases will be made at the current
market price of the securities plus a brokerage fee that is negotiable with the broker and any additional
transaction costs applicable to such a trade.
The cash subscription price and number of the Fund's securities to be issued to an investor for cash will be
determined by the amount which the investor invests (net of transaction costs) and will be a function of the pro
rata cost to the portfolio of acquiring the underlying basket of securities.
Investors subscribing for the Fund's securities, by the delivery of one or more full baskets of constituent
securities, are obliged to deliver securities with a perfect match to the index.
Investors may sell securities by trading on the JSE.
Securities prices are determined by reference to the net assets of the Portfolio divided by the number of
securities in issue. For unit pricing purposes, net assets are determined using the last reported trade price for
securities. These prices may differ from the market price quoted on the JSE.
12. 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 Fund’s net assets at redemption date. In accordance with
the Trust's Deed and the Act, the Fund is contractually obliged to redeem securities at the net asset value. A
redemption fee, depending on the size of the recall, would be payable by the investor making the redemption.
Net assets attributable to security
13. holders
Securities are redeemable at the security holder’s option and are therefore classified as financial liabilities. The
securities may be sold back to the Portfolio at anytime. The fair value of redeemable securities is measured at
the redemption amount that is payable (in cash and securities representing each investor’s equal, undivided and
vested interest in the assets as a whole, subject to liabilities, as defined by the Portfolio’s Trust Deed) at the
reporting date if security holders exercise their right to put the securities back to the Portfolio.
14. Increase/decrease in net assets attributable to security holders
Income not distributed is included in net assets attributable to security holders
ABRIDGED AUDITED RESULTS FOR GRINDROD INDEX TRACKER MANAGERS (RF)
PROPRIETARY LIMITED FOR THE PERIOD ENDED 30 SEPTEMBER 2014
STATEMENT OF FINANCIAL POSITION
as at 30 September 2014
30 September 30 June
Notes 2014 2013
R R
ASSETS
NON-CURRENT ASSETS
Loan to holding company 7 7,300,000 6,980,888
CURRENT ASSETS
Other assets 1 617,546 445,392
Cash and cash equivalents 520,278 117
TOTAL ASSETS 8,437,824 7,426,397
EQUITY AND LIABILITIES
Share capital 2 100 100
Accumulated profit / (loss) - -
Equity 100 100
CURRENT LIABILITIES
Loans 3 7,300,000 7,301,553
Other liabilities 4 1,137,724 124,744
TOTAL EQUITY AND LIABILITIES 8,437,824 7,426,397
STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 September 2014
15 Months 12 Months
30 September 30 June
Notes 2014 2013
R R
Revenue 2,411,802 1,354,497
Operating expenditure (2,435,402) (1,354,504)
Operating Loss (23,600) (7)
Finance income 23,600 7
NET PROFIT BEFORE TAXATION 5 - -
Taxation - -
NET PROFIT AFTER TAXATION - -
Other comprehensive income - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR - -
STATEMENT OF CHANGES IN EQUITY
for the period ended 30 September 2014
Share Accumulated
Notes Capital Profit/ (Loss) Total
R R R
Balance at 30 June 2012 100 - 100
Total comprehensive income for the year - - -
Balance at 30 June 2013 100 - 100
Total comprehensive income for the year
- - -
Balance at 30 September 2014 100 - 100
STATEMENT OF CASH FLOWS
for the period ended 30 September 2014
15 Months 12 Months
31 December 30 June
Notes 2013 2013
R R
NET PROFIT BEFORE TAXATION - -
Working capital changes:
Increase in other assets (172,154) (197)
Increase / (Decrease) in other liabilities 1,012,980 (380)
Net cash inflow / (outflow) from operating activities 840,826 (577)
Net cash outflow from investing activities
Increase in loans to holding company (319,112) -
Net cash inflow/(outflow) from financing activities
Decrease in loans from shareholders (1,553) -
NET INCREASE / (DECREASE) IN CASH AND CASH
EQUIVALENTS 520,161 (577)
Cash and cash equivalents at the beginning of the period 117 694
CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD 520,278 117
ACCOUNTING POLICIES
for the period ended 30 September 2014
The financial statements of the Company are prepared in accordance with International Financial Reporting
Standards("IFRS") and the Companies Act of South Africa and have been prepared on the historical cost basis except
for the revaluation of certain financial instruments.
At the date of approval of the annual financial statements, the following new standards, interpretations and amendments
that apply to the group were in issue but not yet effective:
New standards
IFRS 9 - Financial Instruments - Effective for annual period beginning on or after 1 January 2018
IFRS 14 - Regulatory deferral accounts- Effective for annual period beginning on or after 1 January 2016
IFRS 15 - Revenue from contracts with customers - Effective for annual period beginning on or after 1 January
2017
Amendments to existing standards
IFRS 11 - Accounting for acquisitions of interests in joint operations - Effective for annual period beginning on or
after 1 January 2016
IAS 38 - Clarification of acceptable methods of depreciation and amortisation - Effective for annual period
beginning on or after 1 January 2016
The principal accounting policies adopted in the preparation of these financial statements are set out below:
1. Revenue Recognition
Income derived from services rendered is recognised where it is probable that economic benefits will flow to the
entity and the stage of completion and the amount can be reliably measured.
Interest income is recognised on a time proportion basis which takes into account the effective yield on the asset.
Interest income includes the amount of amortisation of any discount or premium.
Dividend revenue from investments is recognised when the shareholder has a right to receive payment.
2. Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are
not quoted in an active market are classified as "loans and receivables". Loans and receivables
are measured at amortised cost using the effective interest method less any impairment. Interest
income is recognised by applying the effective interest rate, except for short term receivables
where the recognition of interest would be
immaterial.
3. Related party transactions
Parties are considered to be related if one party has the ability to control or exercise significant
influence over the other party in making financial and operating decisions. The company enters
into various related party transactions in the ordinary course of business. The terms and conditions
of related party transactions are no more favourable than those granted to third parties in arm's
length transactions.
4. Financial Liabilities
Financial liabilities which include trade payables and shareholders' loans are measured at amortised cost using the
effective interest rate method.
5. Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
judgements and assumptions that affect the reported amounts. It also requires management to exercise its
judgement in the Scheme’s process of applying the accounting policies. Actual results may vary from these
estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions or
estimates are significant.
6. Taxation
Income tax on profit or loss for the period comprises current and deferred tax. Income tax is recognised in profit or
loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using the tax rates enacted or
substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the comprehensive liability method, based on temporary differences. Temporary
differences are differences between the carrying amounts of assets and liabilities for financial reporting purposes
and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the
reporting date. The effect on deferred tax of any changes in the tax rate is recognised in profit or loss except to the
extent that it relates to an item recognised in equity in which case it is recognised in equity.
A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against
which the associated unused tax losses and deductible temporary differences can be utilised. Deferred tax assets
are reduced to the extent that it is no longer probable that the related tax benefit will be realised. A deferred tax
asset is not recognised on initial recognition of an asset or liability in a transaction that at the time affects neither
accounting nor taxable profit or loss.
The financial information set out in this announcement is based on the financial statements
which have been audited by the auditors Deloitte & Touche. Their unmodified audit report is
available for inspection at the Manager’s registered address.
The full financial statements are available on www.grindrodbank.co.za.
30 December 2014
Sponsor
Grindrod Bank Limited
Date: 30/12/2014 09:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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