Archive for June 2008

Financial assets and liabilities carried on the balance sheet include loans, investments, cash and cash equivalents, accounts receivable and accounts payable. All financial instruments are initially measured at fair value. In the case of financial instruments not classified as at fair value through profit and loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument are added to the fair value.

Accounts receivable and loans originated by the company are measured at amortised cost using the effective interest rate method less any allowance for impairment. Accounts payable are stated at gross invoiced value less discounts. Foreign payables are re-valued at yearend spot rates prevailing in the market.

Samroc is listed on the Venture Capital sector of the JSE Limited (“JSE”). The company has seen significant changes during the past twelve months to its capital structure, its major shareholders and its board of directors.

Capital Restructure

During December 2007 the company consolidated and converted its issued share capital of 374 274 923 ordinary shares of 1 cent each on a 1-for-10 basis into 37 427 492 ordinary shares of no par value. During the period under review, the company had two issues of shares for cash raising a total of R54,15 million. The purpose of the issues was to settle the company’s long-term liabilities and to raise capital for the evaluation of new acquisitions by the company and to facilitate the recruitment of a new management team.