2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/08NOTES TO THECONSOLIDATED ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 200811 Cash and cash equivalentsCash and cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investmentor other purposes. Cash and cash equivalents include cash on hand, bank deposits, investments in money marketinstruments and comprise:Bank balancesShort-term deposits2008R’000Group137,116298,1742007R’00073,775273,2782008R’000Corporation5,936298,1742007R’00014,842273,278435,290 347,053 304,110 288,120Committed to projects (Note 18) 143,787 159,097 137,610 152,92012 Share capitalAuthorised50 billion “A” shares of 1 cent each50 billion “B” shares of 1 cent each500,000500,0005,0005,000500,000500,0005,0005,0001,000,000 10,000 1,000,000 10,000Reconciliation of number of shares issued:Reported as at 01 April 2007Share capital receivedIssued“A” shares of 1 cent each“B” shares of 1 cent each239,37331,497193,82345,550239,37331,497193,82345,550270,870 239,373 270,870 239,373135,435135,435119,687119,686135,435135,435119,687119,686270,870 239,373 270,870 239,37313 ReservesDuring the year, the Corporation’s authorised share capital was increased to R 1 billion comprising equal proportions of“A” and “B” shares.Pre-incorporation reservePre-incorporation reserves represent the net book value of asset and liabilities transferred from previous corporations,adjusted for any changes in the value of these assets due to information which has been established during the currentand prior years that refer to the value of assets taken over.Property revaluation reserveThe property revaluation reserve represents the total revaluation of land and buildings and fair value adjustments oninvestment properties.Fair value adjustment available-for-sale-assets reserveFair value reserves comprise all fair value adjustments that are recognised directly in equity and / or transfers fromretained earnings. When an asset or liability is derecognised, the portion of the fair value reserve relating to that assetor liability is transferred to profit or loss.90