| Fri 29 Jun 2007, 8:00 | | THG - Trackhedge - Abridged Audited Financial Stat |
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JSE NRD
THG
THG - Trackhedge - Abridged Audited Financial Statements For The Year Ended 31
March 2007
Trackhedge (Proprietary) Limited
(Registration number 2003/008245/07)
Issuer code: THG JSE Code: NRD
ISIN: ZAE000047841
("Trackhedge" or "the Company")
ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
NewRand Index Securities
INCOME STATEMENT
for the year ended 31 March 2007
2007 2006
R R
Revenue 30 673 22 639
Interest received 30 673 20 578
Other income - 2 061
Fair value adjustments - -
Profit before taxation 30 673 22 639
Taxation (8 895) (5 968)
Profit for year 21 778 16 671
CASH FLOW STATEMENT
for the year ended 31 March 2007
2007 2006
R R
Net cash inflow from operating activities
Cash (utilised)/generated from operations (1 566) 313
Interest received 30 673 20 578
Taxation paid - -
29 107 20 891
Cash inflow from investing activities 922 253 548 17 344 545
Proceeds from sale of unlisted investment 922 253 548 111 141 000
Purchase of unlisted investment - (93 796 455)
Cash outflow from financing activities (922 253 548) (17 344 545)
Redemptions of New Rand Index Securities (922 253 548) (111 141 000)
New issues of New Rand Index Se curities - 93 796 455
Net cash and cash equivalents 29 107 20 891
Cash and cash equivalents at beginning
of year 857 645 836 754
Cash and cash equivalents
at end of year 886 752 857 645
BALANCE SHEET
at 31 March 2007
2007 2006
R R
Assets
Non -current assets
Unlisted investments 902 581 066 1 578 367 294
Current assets 890 066 859 393
Accounts receivable 3 314 1 748
Cash and cash equivalents 886 752 857 645
Total assets 903 471 132 1 579 226 687
Equity and liabilities
Share capital and reserves 48 428 26 650
Share capital 1 1
Retained earnings 48 427 26 649
Non -current liabilities
NewRand Index Securities 902 581 066 1 578 367 294
Current liabilities
Current tax payable 841 638 832 743
Total equity and liabilities 903 471 132 1 579 226 687
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2007
Share Retained
capital earning Total
R R R
Balance at 1 April 2005 1 9 978 9 979
Profit for the year - 16 671 16 671
Balance at 31 March 2006 1 26 649 26 650
Profit for the year - 21 778 21 778
Balance at 31 March 2007 1 48 427 48 428
Notes to the annual financial statements
1. Accounting policies
The financial statements incorporate the principle accounting policies set out
below:
1.1 Statement of compliance
The financial statements are prepared in accordance with International Financial
Reporting Standards (IFRS) and its interpretations by the International
Accounting Standards Board (IASB) and in the manner required by the South
African Companies Act.
1.2 Basis of preparation
The financial statements are prepared on a historical cost basis, except for
financial instruments which are accounted for as set out in note 1.3.
1.3 Financial instruments
Measurement
Financial instruments are recognised when, and only when, Trackhedge
(Proprietary) Limit ed (the "Company") becomes a party to the contractual
provisions of the particular instrument. Financial instruments are initially
measured at fair value. Transaction costs on financial assets and financial
liabilities at fair value through profit and loss are expensed immediately,
while on other financial instruments they are amortised. Subsequent to initial
recognition these instruments are measured as set out below:
Investment
The unlisted investment in the NewRand Trust is classified as held for trading
and shown at fair value which is represented by the net asset value of the
Trust, net of distributions payable.
Financial liability
The financial liability to holders of the NewRand Index Securities is stated at
the fair value as represented by the value of the NewRand FTSE Index.
Other financial assets and liabilities
Other financial assets are measured at amortised cost less impairment charges,
if any. Other financial liabilities are measured at amortised cost using the
effective interest rate method.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value at balance sheet date.
Gains and losses on subsequent measurement
Gains and losses arising from a change in the fair value of financial
instruments are included in net profit or loss in the period in which the
changes arise.
Offset
Financial assets and financial liabilities are offset and the net amount
reported in the balance sheet when the Company has a legally enforceable right
to set- off the recognised amounts, and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
Derecognition of financial instruments
The Company derecognises a financial asset when and only when:
the contractual rights to the cash flows arising from the financial assets have
expired or being forfeited by the Company; or
it transfers the financial asset including substantially all the risks and
rewards of ownership of the assets; or
it transfers the financial asset, neither retaining nor transferring
substantially all the risks and rewards of ownership of the asset, but no longer
retains control of the assets.
A financial liability is derecognised when and only when the liability is
extinguished, that 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 the income statement.
1.4 Revenue
Revenue is comprised of interest.
Interest is recognised on a time proportion basis, taking account of the
principal outstanding and the effective rate over the period to maturity, when
it is probable that such income will accrue to the Company.
1.5 Taxation
Income tax on the profit or loss for the period comprises current and deferred
tax. Income tax is recognised in the income statement except to the extent that
it relates to items recognised directly to equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income for the period,
using tax rates enacted or substantively enacted at the balance sheet date and
any adjustment to tax pay able in respect of previous periods.
Deferred taxation is provided using the balance sheet liability method based on
temporary differences. Temporary differences are differences between the
carrying amount of assets and liabilities for financial reporting purposes and
their tax base. The amount of deferred taxation 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 balance
sheet date. Deferred taxation is charged to the income statement, except to the
extent that it relates to a transaction that is recognised directly in equity,
or a business combination that is an acquisition. The effect on deferred
taxation of any changes in tax rates is recognised in the income statement,
except to the extent that it relates to items previously charged or credited
directly to equity.
A deferred tax asset is recognised to the extent that it is probable that the
future taxable income will be available , against which the unutilised tax
losses and deductible temporary differences can be used. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax
benefits will be realised.
1.6 Impairments
The carrying amounts of a company`s assets are reviewed at each balance sheet
date to determine whether there is an indication of impairment. If any such
indication exists, the asset`s recoverable amount is estimated. An impairment
loss is recognised whenever the carrying amount of an asset or its cash
generating unit exceeds its recoverable amount. Impairment losses are recognised
in the income statement.
1.7 Provisions
Provisions are recognised when the company has a present legal or constructive
obligation as a result of pas t events, for which it is probable that an outflow
of economic benefits will occur and where a reliable estimate can be made of the
amount of the obligation. Where the effect of discounting is material,
provisions are discounted. The discount rate used is a pre- tax rate that
reflects current market assessments of the time value of money and, where
appropriate, the risk specific to the liability.
Future operating costs or losses are not provided for.
1.8 Forthcoming requirements
At the date of authorisation of these financial statements, the following
standard and interpretations, which are relevant to the Company, were in issue
but not yet effective and have not been early adopted in the financial
statements:
IFRS 7: Disclosure (effective year- ends beginning 1 January 2007).
IFRS 7 supersedes IAS 30, Disclosures, in the Financial Statements of Banks and
Similar Financial Institutions and the disclosure requirements in IAS 32. IFRS 7
requires additional disclosure over and above that required by IAS 32 in respect
of the following:
the significance of financial instruments for an entity`s financial position and
performance;
the nature and extent of risks arising from financial instruments; and
capital objectives and policies.
The adoption of the above standard will have no impact on the Company`s
accounting policies for financial instruments.
DIRECTORS` REPORT
for the year ended 31 March 2007
NATURE OF BUSINESS
Trackhedge (Proprietary) Limited (Registration number 2003/008245/07) ("Issuer")
is a private company incorporated in South Africa, the entire issued share
capital of which is held by the NewRand Trust ("the Trust"), a registered,
discretionary trust. The Issuer is a special purpose vehicle incorporated for
the sole purpose of issuing NewRand Index Securities ("Index Securities"). Index
Securities are created with an objective to track the performance of a
customised index of Rand hedge shares created by Absa Capital, formerly known as
("ACMB"), a division of Absa Bank Limited and provided and calculated by FTSE
and the JSE Limited ("JSE") ("Index"). The Index composition and calculation
methodology were designed with an objective to maximise long-term correlation
with the Rand/US$ exchange rate.
PERFORMANCE
At 31 March 2007, 44 019 966 (2006: 98 019 966) securities were in issue with a
total market value of R902 581 066 (2006: R1 578 367 296).
ANNUAL FINANCIAL STATEMENTS
These annual financial statements have been audited by the independent auditors,
KPMG Inc., and their unqualified audit report is available for inspection at the
Company`s registered office.
28 June 2007
Originator
ABSA Capital
Date: 29/06/2007 08:00:07 Produced by the JSE SENS Department.
