Profit attributable to owners of company also takes into account non$-$cash expenses $($relating to the

annual depreciation charge$)$ to the value of R$3,2$ million for the year ended $31$ July $2024.$

The Profit attributable to owners of company is expected to remain constant for the next two financial

years, then increase by an average of $4\%$ per annum for the two years thereafter, and then afterwards

grow at a constant rate of $3\%$ for the foreseeable future. To remain relevant in the highly competitive

industry, Southpoint Limited continues to prioritise and maintain its annual capital expenditure of R$8$

million as it has done so for the past many years. For this reason, the dividends will remain constant for

the next four years, and then the board of directors will revisit the decision in line with the profitability of

the business, as well as the state of the economy. The cost of equity of Southpoint Limited approximates

$15\%.$

Before buying shares in an existing business, SIG must satisfy itself that, based on the latest available

information, the following minimum key performance indicators are met by the potential target company:

Net interest cover of $2,5$ times for leveraged companies;

Dividend payout ratio of $40\%$; and

EBITDA margin of $55\%.$

Comment on the dividend policy of Southpoint Limited as evident from its

financial statements as well as its proposed dividend payment going forward.

$[$No calculations are required.$]$