Chairmans report 2016

Dear residents,

Another year has flown past and we as trustees once again get the opportunity to share with you what has been
happening in Silverstream South. To prevent the AGM from becoming a long drawn out affair, you should all have
copies of this reports.

So, let us look at 2016..

ADMINISTRATION

2016 was a year in which the board focussed on various issues in the complex. Least of which was the fine-tuning of
our set of house rules and commencing with a more stringent implementation of said rules, as we had noticed that
there was a fair amount of ignoring of the rules going on within the complex. House rules were distributed to all
residents and infringement notices were issued where required. This is an ongoing process and we all need to be
mindful that the trustees are trying their best to attend to each situation as and when it arises. We are also trying to
be as fair as possible so that no one resident is placed above another. Even trustees who have infringed have been
sent their infringement letters and been dealt with the same as any other resident in the complex.

We set up various processes within the board, dividing duties among ourselves so as to ensure that the best person
was responsible for certain areas of responsibility. With this in mind we appointed Sujith Ramphal as our Building
and Maintenance trustee, Maud Raseroka as our Security trustee whilst myself and Vikram Petluru oversaw the
financial side of things.

As a team we managed to streamline internal processes and work closely together to ensure that issues were
addressed as soon as possible. We did not always succeed in this endeavour but then you will grant us the slightest
of breaks, as this was our first year together as an almost brand new board of trustees.

So, lets take a look at the individual portfolios and how these were managed and what was achieved for the past
year.

FINANCIAL

Without going into too much detail, as we know this bores most of you to tears each year, I just want to state that
for the year ended July 2016, we were in a positive financial position, and this can be seen in the accompanying
financial statements you should have received with your AGM notice.

The budget for the new year has been completed and unfortunately, weve had to look at our finances carefully.
Whilst the past year put us in the black, we must not be complacent, but think to the future and ensure we have
enough reserves to tide us through any possible difficult times.

Therefore weve had to look at a levy increase. The percentage will be discussed later on in the meeting.

Weve also been notified of a new tax on complex levies that is now due to government. The details of this will also
be discussed with all residents in due course.

MAINTENANCE

Weve done a fair amount over the past year where maintenance is concerned.
 A new change room was built for the grounds staff, thereby removing them from the clubhouse.
The clubhouse roof was enclosed with an inner ceiling to do away with roosting birds
Poles were planted in front of all grass patches to prevent cars parking on grass areas
Maintenance schedules were implemented to set deadlines and track all maintenance issues
Street lighting was improved in darker areas which ties in with security
Various repairs have been done to units with structural damage.

SECURITY

Most troubling of all, is our security within the complex. Weve seen an uptick in incidents reported within the
complex and accordingly we are trying to ensure that the complex is as secure as possible so as to prevent any
further incidents.

The electric fencing is being ramped up in certain areas of identified weakness, which will hopefully put paid to those
areas as potential entry points into the complex.

We are also currently attempting to get the Vet next door to comply to municipal regulations and cut down her
trees, as these pose a security risk to our complex, but as yet weve had no success. It would seem that we may have
to resort to the courts to resolve this issue.

We have also had issues with children in the complex damaging the electric fencing and have asked all residents to
please ensure their children play responsibly and carefully so that we do not incur costs for broken fencing.

The guards and GP Security have also been scrutinised this year and weve managed to recoup some money from GP
for incorrect billing on our contract with them. Guard processes have also been streamlined and GP has been given
a clear brief of what the guard duties are, and what we as a board of trustees expect from them.

Maud has worked tirelessly to ensure that the guards are performing their jobs to 100% of the contractual
obligations and to ensure that we as owners benefit from the guards presence at the gate and within the complex.

SPECIAL PROJECTS FOR NEW YEAR

As always, there are many issues within complexes such as ours and it is a constant and ongoing task to ensure
everything works within the complex.

Two major projects that are rearing their heads for us at the moment need to be mentioned for your information. In
particular, the one project, which has a major cost implication for owners.

I am sure most of you will have noticed that there is a significant lack of gutters in the complex. We are of
the opinion that this is starting to cause a lot of damage to the structure and as such, the board has started
investigating the possibility of installing gutters to cope with excess rain water.

The cost of this is NOT cheap at all, were talking in excess of half a million rand. This would mean a special
levy. However as this is such a huge undertaking we would need to make sure we have the best quotes and
have the best team on site to facilitate the job. We will be investigating this project thoroughly during the
course of the new year and will communicate with owners around this once we have more concrete
information. We did do initial quotes this past year but we need to shop around a little more.

For now, we just wanted to mention this to you so that you are aware of what is in the pipeline.
The second project, one which I have been running with over the last few months, is the installation of Fibre to the
complex.

Some of you will remember that I did a survey about a year and a half ago around the same thing. Back then
the complex would have to spend at least R20,000 per month to make the fibre viable. I am pleased to
announce that, partnering with Dark Fibre Africa, we are able to bring fibre to the complex at NO cost to the
complex what so-ever, with no minimum spend or take-up expected by DFA.

This endeavour will give us free wi-fi at the club house, Fibre points for CCTV at the gate and a fibre
connection to each unit, at no cost. HOWEVER, to activate or light up the fibre in each unit, will be for the
owner/tenants own pocket from there on out.

So what will this cost you? An initial R750 installation charge and then your monthly subscription. The rates
we have obtained so far seem to be pretty reasonable all packages are uncapped and unshaped. A 20meg
line would cost you R799 per month, a 50meg line, R899 and a 100meg line R999. This is unbeatable value,
should we be able to secure these packages at those costs. Unfortunately, I am still waiting for the final
proposal from DFA in order to finalise the project, but I am hoping that by end of January we can commence
pulling the fibre cables into the complex and to each unit.

I must stress that there is NO cost to the complex for this project and there is NO obligation for owners to
switch on the fibre at their unit, so all in all, its a win-win for everyone.

IN CLOSING

I think that 2016 has been a challenging year all round, for us as consumers especially. The economy has shown that
we need to be mindful of our rands and cents, and just so must we as a complex manage our finances in the same
way, ensuring we have reserves in case of major emergencies. We as a board of trustees have done what we could
over the past year to ensure this and we hope that as a team we may do the same for the new year, should the same
team be voted in again.

I would like to take this opportunity to thank my fellow trustees for their sterling efforts this past year and I would
like to wish each and every one of your, our owners, a pleasant festive season, a happy new year and all the best for
2017.

Thank you

Gys de Beer