| Mon 30 Jun 2008, 11:22 | | THG - Trackhedge (Proprietary) Limited - Abridged audited annual financial |
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JSE NRD
THG
THG - Trackhedge (Proprietary) Limited - Abridged audited annual financial
statements for the year ended 31 March 2008
Trackhedge (Proprietary) Limited
(Registration number 2003/008245/07)
Issuer code: THG JSE Code: NRD
ISIN: ZAE000047841
("Trackhedge" or "the Company")
ABRIDGED AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
INCOME STATEMENT
for the year ended 31 March 2008
Notes 2008 2007
R R
Revenue
Interest received 11 139 30 673
Fair value adjustments 9 - -
Profit before taxation 11 139 30 673
Income tax expense 10 (123 455) (8 895)
(Loss)/profit for the year (112 316) 21 778
BALANCE SHEET
at 31 March 2008
Notes 2008 2007
R R
Assets
Non-current assets
Unlisted investments 2 420 558 908 902 581 066
Current assets 1 167 890 066
Trade and other receivables 3 - 3 314
Cash and cash equivalents 1 167 886 752
Total assets 420 560 075 903 471 132
Equity and liabilities
Share capital and reserves (63 888) 48 428
Share capital 4 1 1
(Accumulated loss)/
Retained Earnings (63 889) 48 427
Non-current liabilities
NewRand Index Securities 5 420 558 908 902 581 066
Current liabilities 65 055 841 638
Trade and other payables 6 42 687 -
Current tax payable 22 368 841 638
Total equity and liabilities 420 560 075 903 471 132
CASH FLOW STATEMENT
for the year ended 31 March 2008
Notes 2008 2007
R R
Cash flows from operating activities
Cash generated/ (utilised) from
operations 11.1 46 001 (1 566)
Interest received 11 139 30 673
Taxation paid 11.2 (942 725) -
Net cash (utilised)/generated from
operating activities (885 585) 29 107
Cash inflow from investing activities - 922 253 548
Proceeds from sale of unlisted
investments - 922 253 548
Purchase of unlisted investments - -
Cash outflow from financing activities - (922 253 548)
Redemptions of NewRand Index
Securities - (922 253 548)
New issues of NewRand Index Securities - -
Net cash and cash equivalents (885 585) 29 107
Cash and cash equivalents at the
beginning of year 886 752 857 645
Cash and cash equivalents at the end of year 1 167 886 752
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2008
Share (Accumulated loss)/ Retained
capital earnings Total
R R R
Balance at 1 April 2006 1 26 649 26 650
Profit for the year - 21 778 21 778
Balance at 31 March 2007 1 48 427 48 428
(Loss)/profit for the year - (112 316) (112 316)
Balance at 31 March 2008 1 (63 889) (63 888)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
1. Accounting policies
The financial information incorporate the principle accounting policies set out
below which have been applied consistently by Trackhedge (Proprietary) Limited.
1.1 Statement of compliance
The financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS) and it`s interpretations by the
International Accounting Standards Board (IASB), and in the manner required by
the Companies Act of South Africa.
1.2 Basis of measurement
The financial statements have been prepared on a historical cost basis, except
where specifically indicated otherwise in the accounting policies.
1.3 Financial instruments
Measurement
Non-derivative financial instruments comprise investments in equity and debt
securities, trade and other receivables, cash and cash equivalents, loans and
borrowings, trade and other payables.
Non-derivative financial instruments are classified at fair value through
profit or loss if it is held or is designated as such upon initial recognition.
Financial instruments are designated at fair value through profit or loss if
the Company manages investments and makes purchase and sale decisions based on
their fair value in accordance with the Company`s risk management strategy.
Upon initial recognition, attributable transaction costs are recognised in
profit or loss when incurred. Financial instruments at fair value through
profit or loss are measured at fair values, and changes therein are recognised
in profit or loss. Subsequent to initial recognition non-derivative financial
instruments are measured as described below.
Cash and cash equivalents comprise cash balances and call deposits.
Fair value movements on financial liabilities and investments
The carrying value of the liability at fair value is the amount which
Trackhedge (Proprietary) Limited is contractually required to pay to the holder
of the obligation on demand.
The value of the financial liability is affected by the market value of the
underlying portfolio of equities, this is determined with reference to the
stock exchange quoted selling prices.
Financial instruments designated at fair value
Financial liabilities are designated at fair value through profit and loss. The
fair value designation, once made, is irrevocable. Measurement is initially at
fair value, with transaction costs taken directly to the income statement.
Subsequently, the fair value is remeasured, and gains and losses from changes
therein are recognised in profit and loss. The fair value will be as stated
above.
Other
Other non-derivative financial instruments are measured at amortised cost using
effective interest method, less any impairment losses.
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 comprises of interest income.
Interest is recognised on a time proportion basis, taking account of the
principal outstanding and the effective interest 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 payable in respect of previous periods.
Deferred taxation is provided using the balance sheet 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.
Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets, and they relate
to income taxes levied by the same tax authority on the same taxable entity.
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 reviewed at each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefits will be realised.
1.6 Impairments
A financial asset is assessed at each reporting date to determine whether there
is any objective evidence that it is impaired. A financial asset is considered
to be impaired if objective evidence indicates that one or more events have had
a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost
is calculated as the difference between the asset`s carrying amount, and the
present value of estimated future cash flows discounted at the financial
asset`s original effective interest rate.
All impairment losses are recognised in profit and loss.
An impairment loss is reversed if the reversal can be related to an event
occurring after the impairment loss was recognised. For financial asset
measured at cost and available-for-sale financial assets that are debt
securities, the reversal is recognised in profit or loss.
1.7 Provisions
Provisions are recognised when the Company has a present legal or constructive
obligation as a result of past 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 determined by discounting the expected future cash flows at 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 New standards and interpretations adopted in the current year
The following standards, amendments to standards, and interpretations,
effective for the first time in the current accounting period, and which are
relevant to the Company, have been adopted in these financial statements:
- IAS 1 amendment, `Additional disclosures in relation to an entity`s capital`
(effective 1 January 2007);
- IFRS 7 `Financial Instruments: Disclosures` (effective 1 January 2007). IFRS
7 supersedes IAS 32 `Financial Instruments: Disclosure and Presentation`. In
particular, IFRS 7 requires additional disclosure over and above that required
by IAS 32 in respect of:
(i) The significance of financial instruments for an entity`s financial
position and performance;
(ii) The nature and extent of risks arising from financial instruments; and
(iii) Capital objectives and policies.
1.9 Forthcoming requirements
The following standards, amendments to standards, and interpretations,
effective in future accounting periods, and which are relevant to the Company
have not been early adopted in these financial statements:
- IAS 1 `Presentation of Financial Statements` (effective 1 January 2009). The
changes include a comprehensive revision of primary statements, and include a
requirement to introduce a statement of comprehensive income. There will be
some limited presentational changes as a result of the introduction of this
standard but no changes in measurement or recognition.
Directors` report
for the year ended 31 March 2008
NATURE OF BUSINESS
Trackhedge (Proprietary) Limited (Registration number 2003/008245/07)
("Issuer") is a private company incorporated in the Republic of South Africa,
the entire issued share capital of which is held by the NewRand Owner 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 Securities Exchange of South Africa
("JSE") ("NewRand Index", "Index"). The Index composition and calculation
methodology were designed with an objective to maximise long-term correlation
with the Rand/USD exchange rate.
PERFORMANCE
At 31 March 2008, 19 019 966 (2007: 44 019 966) securities were in issue with a
total market value of R 420 558 908 (2007: R 902 581 066).
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.
30 June 2008
Sponsor
Java Capital (Proprietary) Limited
Date: 30/06/2008 11:22:01 Produced by the JSE SENS Department.
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