| Mon 30 Jun 2008, 11:24 | | GLD - NewGold Issuer Limited - Abridged Audited Annual Financial Statements For |
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JSE GLD
GLD
GLD - NewGold Issuer Limited - Abridged Audited Annual Financial Statements For
The Year Ended 31 March 2008
NewGold Issuer Limited
(formerly Lexpub 39 Investments Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2004/014199/06)
Share code: GLD
ISIN: ZAE000060067
("NewGold" or "the company")
ABRIDGED AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
NewGold Issuer Limited
INCOME STATEMENT
for the year ended 31 March 2008
2008 2007
Notes R R
Revenue 16 743 193 5 826 643
Monthly gold sales charge and
creation fee 16 504 950 5 700 141
Finance income 238 243 126 502
Other income 2 711 999 1 141 708
Operating expenses (6 859 433) (3 170 182)
Finance charges - (38 364)
Fair value adjustments 10 139 110 198 407
Profit for the year before taxation 8 12 734 869 3 958 212
Income tax expense 9 (4 426 528) (1 297 229)
Profit for the year after taxation 8 308 341 2 660 983
BALANCE SHEET
as at 31 March 2008
Notes 2008 2007
Assets R R
Non-current asset
Deferred tax asset 5 131 374 248 100
Current assets 7 070 988 194 1 753 057 113
Trade and other receivables 6 3 976 978 463 758
Cash and cash equivalents 3 027 916 2 418 788
Gold bullion 2 7 063 983 300 1 750 174 567
Total assets 7 071 119 568 1 753 305 213
Equity and liabilities
Share capital and reserves 3 679 411 1 150 312
Ordinary share capital 3 100 100
Retained earnings 3 679 311 1 150 212
Non-current liabilities
Debentures 4 7 061 686 954 1 749 741 042
Current liabilities 5 753 203 2 413 859
Trade and other payables 7 1 859 197 733 010
Current tax payable 3 894 006 1 680 849
Total equity and liabilities 7 071 119 568 1 753 305 213
CASH FLOW STATEMENT
for the year ended 31 March 2008
Notes 2008 2007
R R
Cash flows from operating
activities
Cash generated from operations 11.1 (10 208 726) 3 071 919
Interest received - 126 502
Dividends paid 10 (5 779 242) (2 024 201)
Taxation paid 11.2 (2 096 645) -
Net cash generated from
operating activities 2 332 839 1 174 220
Cash flows from investing activities
Proceeds from the sale of gold bullion 141 000 000 168 000 000
Purchase of gold bullion (3 328 820 000) (304 880 000)
Net cash outflow from investing
activities (3 187 820 000) (136 880 000)
Cash flows from financing activities
Proceeds from debenture issue 3 187 820 000 136 880 000
Gold not yet sold (1 723 711) -
Net cash inflow from financing activities 3 186 096 289 136 880 000
Net increase in cash and cash equivalents 609 128 1 174 220
Cash and cash equivalents at
the beginning of year 2 418 788 1 244 568
Cash and cash equivalents at end of year 3 027 916 2 418 788
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2008
Share Retained
capital earnings Total
R R R
100 513 430 513 530
Balance at 1 April 2006
Profit for the year - 2 660 983 2 660 983
Dividends paid - (2 024 201) (2 024 201)
Balance at 31 March 2007 100 1 150 212 1 150 312
Profit for the year - 8 308 341 8 308 341
Dividends paid - (5 779 242) (5 779 242)
Balance at 31 March 2008 100 3 679 311 3 679 411
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 NewGold Issuer Limited.
1.1 Statements 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 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, trades 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 Trust manages investments and makes purchase and sale decisions based on
their fair value in accordance with the Trust risk management or strategy
policy. Upon initial recognition attributable transaction costs are recognised
in profit or loss when incurred. Subsequent to initial recognition
non-derivative financial instruments are measured as described below.
Cash and cash equivalents comprise cash balances and call deposits.
Debentures 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 carrying value of the liability at fair value is the amount which the
NewGold Limited is contractually required to pay to the holder of the
obligation on demand. This is affected by market value of the underlying asset
being gold bullion, this is determined with reference to the exchange quoted
selling prices of NewGold debenture.
Trades and other receivables
The fair value of trades and other receivables is estimated as the present
value of future cash flows, discounted at market rate of interest at reporting
date.
Other
Other non-derivative financial instruments are measured at amortised cost using
effective interest method, less any impairment losses.
Gold Bullion
Gold bullion is carried at fair value less selling costs. Fair value gains and
losses are taken to the income statement. The fair value is affected by market
value of gold bullion and this is determined with reference to the exchange
quoted selling prices of gold per ounces known as Gold PM fix.
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 income from:
Monthly gold sales charge
The income earned from the sale of Gold Bullion. The ounces sold amount to
0.40 % p.a. of the Gold Bullion held by NewGold.
Finance 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 Other income
This income represents a subsidy from the World Gold Council and is recognised
in the income statement as it accrues. These funds are to be utilised to market
NewGold securities.
1.6 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 are reduced to the extent that it is no
longer probable that the related tax benefits will be realised.
1.7 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.
1.8 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.
1.9 Dividends
Dividends payable to holders of the equity instruments of the Company are
recognised in the period in which they are declared.
1.10 Foreign currency translation and balances
Foreign currency transactions are measured using South African Rands, the
Company`s functional currency, on initial recognition by applying to the
foreign currency amount the spot exchange rate between the functional currency
and the foreign currency at the date of the transaction.
Foreign exchange gains or losses resulting from settlement of such transactions
and from translation at period-end exchange rates of assets and liabilities
denoted in foreign currencies, whether monetary or non monetary, are
recognised in the income statement.
1.11 New standards and interpretations adopted during the 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 Trust, have been adopted in these financial statements:
- IAS 1 amendment, `Additional disclosures in relation to an entity`s capital`
(effective 1 January 2007); and
- 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; and
(ii) The nature and extent of risks arising from financial instruments; and
(iii) Capital objectives and policies
1.12 Forthcoming requirements
The following standards, amendments to standards, and interpretations,
effective in future accounting periods, and which are relevant to the Trust
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
The directors have pleasure in presenting their report for the year ended
31 March 2008.
Nature of business
NewGold Issuer Limited (Registration Number 2004/014119/06) ("Issuer or
NewGold") is a public company incorporated in the Republic of South Africa, the
entire issued share capital of which is held by the NewGold Owner Trust ("the
Trust"), a registered, discretionary trust. The Issuer is a special purpose
vehicle incorporated for the sole purpose of conducting an exchange traded fund
(ETF). This enables investors to invest in a debt instrument, the value of
which tracks the price of Gold Bullion.
Performance
The Gold Bullion Debentures were listed on the JSE Securities Exchange of South
Africa ("JSE") on 2 November 2004. At 31 March 2008 94 436 300 (2007:
36 836 300) securities were in issue with a total market value of
R7 061 686 954 (2007: R1 749 741 042). The amount of gold bullion held at the
custodian at 31 March 2008 was 28.97 tonnes. The return from inception was
178.63% and annualised return from inception was 35.51%.
There is a risk that the Gold Bullion could be lost, stolen or damaged,
therefore NewGold would not be able to request either the sale of delivery of
Gold Bullion for itself or on behalf of any qualifying debenture holder. If the
custodian fails to take out suitable insurance for this as it is obliged to do,
then debenture holders have to rely on NewGold recovering the value forgone
from the custodian.
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 11:24:38 Produced by the JSE SENS Department.
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