| Tue 30 Jun 2009, 17:23 | | GLD - Newgold Issuer Limited - Summarised Audited Annual Financial Statements |
|
JSE GLD
GLD
GLD - Newgold Issuer Limited - Summarised Audited Annual Financial Statements
for the Year Ended 31 March 2009
NEWGOLD ISSUER LIMITED
(Registration number 2004/014119/06)
JSE Code: GLD
ISIN: ZAE000060067
("NewGold" or the "Issuer")
SUMMARISED AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2009
STATEMENT OF COMPREHENSIVE INCOME
NewGold Issuer Limited
for the year ended 31 March 2009
2009 2008
R R
Revenue 27 921 199 16 743 193
Monthly gold sales charge 27 502 757 11 511 720
Creation fee - 4 993 230
Finance income 418 442 238 243
Other Income 586 139 2 711 999
Other Expenses (14 753 722) (6 859 433)
Finance charges - -
Fair value adjustments (275 989) 139 110
Profit before taxation 13 477 627 12 734 869
Income tax expense (4 801 912) (4 426 528)
Profit for the year 8 675 715 8 308 341
Other comprehensive income for the year, - -
net of tax
Total comprehensive income for the year 8 675 715 8 308 341
Basic and diluted earnings per share 8 951 705 8 169 231
(cents)
STATEMENT OF FINANCIAL POSITION
as at 31 March 2009
2009 2008
R R
Assets
Non current assets
Deferred tax asset 275 851 131 374
Current assets 8 178 724 852 7 070 988 194
Trade and other receivables 8 080 311 3 976 978
Cash and cash equivalents 2 244 998 3 027 916
Gold bullion 8 168 399 543 7 063 983 300
Total assets 8 179 000 703 7 071 119 568
Equity and liabilities
Share Capital and reserves 1 370 943 3 679 411
Ordinary share capital 100 100
Retained earnings 1 370 843 3 679 311
Non-current liabilities
Debentures 8 165 642 796 7 061 686 954
Current liabilities 11 986 964 5 753 203
Trade and other payables 8 779 304 1 859 197
Current tax payables 3 207 660 3 894 006
Total equity and liabilities 8 179 000 703 7 071 119 568
STATEMENT OF CASH FLOWS
for the year ended 31 March 2009
2009 2008
R R
Net cash (outflow)/inflow from operating (46 527) 2 332 839
activities
Cash generated from operations 16 151 949 10 208 726
Interest received 418 442 -
Dividends paid (10 984 183) (5 779 242)
Taxation paid (5 632 735) (2 096 645)
Net cash outflow from investing (332 100 000) (3 187 820 000)
activities
Proceeds from sale of gold bullion 1 265 900 000 141 000 000
Purchase of gold bullion (1 598 000 000) (3 328 820 000)
Net cash inflow from financing 331 363 609 3 186 096 289
activities
Proceeds from debenture issue 1 598 000 000 3 328 820 000
Debentures redeemed (1 265 900 000) (141 000 000)
Unsold gold bullion (736 391) (1 723 711)
Net (decrease)/increase in cash and cash (782 918) 609 128
equivalents
Cash and cash equivalents at the 3 027 916 2 418 788
beginning of year
Cash and cash equivalents at the end of 2 244 998 3 027 916
year
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2009
Share Retained
Capital earnings Total
R R R
Balance at 1 April 2007 100 1 150 212 1 150 312
Total comprehensive income for - 8 308 341 8 308 341
the year
Dividends declared and paid - (5 779 242) (5 779 242)
Balance at 31 March 2008 100 3 679 311 3 679 411
Total comprehensive income for - 8 675 715 8 675 715
the year
Dividends declared and paid - (10 984 183) (10 984 183)
Balance at 31 March 2009 100 1 370 843 1 370 943
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2009
1. Accounting policies
The financial information incorporate the principle accounting
policies set out below. The accounting policies are consistent with
those applied in the financial statements for the year ended 31 March
2008, with the exception of the changes noted in note 1.12
1.1 Statements of compliance
The financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) and in the manner
required by the Companies Act of South Africa.
This summary has been prepared in accordance with the recognition and
measurement requirements of IFRS and the presentation and disclosure
requirements of IAS34 - Interim Financial Reporting.
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
Non-derivative financial instruments
Non-derivative financial instruments comprise, trade and other
receivables, cash and cash equivalents, trade and other payables, and
debentures.
Initial recognition and measurement
Non-derivative financial instruments are recognised initially at fair
value plus any directly attributable transaction costs. Directly
attributable transaction costs are only included in the initial
carrying amount of financial instruments that are not designated at
fair value through profit and loss. Regular way purchases and sales
of financial instruments are accounted for on trade date. All other
financial instruments are recognised when the entity first becomes a
party to the contractual provisions of the instrument. Subsequent
measurement of non-derivative financial instruments is described
below.
Classification and subsequent measurement
The classification of financial instruments at initial recognition
depends on the purpose for which the financial instruments were
acquired and their characteristics.
Cash and cash equivalents comprise cash balances and call deposits
with an original maturity of three months or less measured at
amortised cost.
Trade and other receivables are measured at amortised cost using the
effective interest method, less any impairment losses. The
amortisation is included in profit or loss.
The effective interest method is a method of calculating the
amortised cost of a financial instrument and of allocating the
interest income or interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts estimated
future cash payments or receipts throughout the expected life of the
financial instrument, or, when appropriate, a shorter period, to the
net carrying amount of the financial instrument.
Debentures are designated as at fair value through profit or loss, as
this will result in more relevant information because it
significantly reduces a measurement or recognition inconsistency and
is managed on a fair value basis. The fair value designation, once
made, is irrevocable. Measurement is initially at fair value, with
directly attributable transaction costs taken directly to profit or
loss.
Subsequently, the liability is measured to fair value, and gains and
losses from changes therein are recognised in profit or loss.
The fair value of the liability is the amount which NewGold is
contractually required to pay to the holder of the debenture on
demand. This is determined by reference to the exchange quoted
selling prices of NewGold debentures. The exchange quoted selling
prices of NewGold debentures is affected by the market value of the
underlying asset being gold bullion.
Trade and other payables are initially measured at fair value, with
directly attributable transaction costs being capitalised to the
initial carrying amount.
Trade and other payables are measured at amortised cost using the
effective interest method. The amortisation is included in profit or
loss.
Other non-derivative financial instruments are measured at amortised
cost using the effective interest method, less any impairment losses.
1.4 Inventory
Inventory comprise of gold bullion. Inventory is carried at fair
value less cost to sell. The fair value is affected by the 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.
1.5 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. This is
the gross sales proceeds on disposal of physical gold bullion.
Revenue from the gold sales is measured at the fair value of the
consideration received or receivable, net of returns, trade discounts
and volume rebates. Revenue is recognised when the significant risks
and rewards of ownership have been transferred to the buyer, recovery
of the consideration is probable, the associated costs and possible
return of goods can be estimated reliably, there is no continuing
management involvement with the goods, and the amount of revenue can
be measured reliably.
Creation fee
Fee earned from creation of new debentures. This fee has been
discontinued and is not applicable for the 2009 year end.
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 be
received by the company.
1.6 Other income
World Gold Council subsidy
This income represents a subsidy from the World Gold Council and is
recognised in profit or loss as it accrues. These funds are to be
utilised to market NewGold securities.
1.7 Expenses recognition
Expenses are recognised in the statement of comprehensive income when
a decrease in future economic benefits relating to a decrease in an
asset or an increase in a liability arose that can be measured
reliably.
1.8 Taxation
Income tax on the profit or loss for the period comprises current and
deferred tax. Income tax is recognised in profit or loss except to
the extent that it relates to items recognised directly in other
comprehensive income or recognised directly in equity, in which case
it is recognised in other comprehensive income or 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.
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.
1.9 Dividends
Dividends are payable at 100% of distributable profits provided that
the company will be liquid and solvent after the distribution.
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
Monetary assets and liabilities denominated in foreign currencies at
the reporting date are retranslated to the functional currency at the
exchange rate at that date. The foreign currency gain or loss on
monetary items is the difference between amortised cost in the
functional currency at the beginning of the period, adjusted for
effective interest and payments during the period, and the amortised
cost in foreign currency translated at the exchange rate at the end
of the period.
Non-monetary assets and liabilities denominated in foreign currencies
that are measured at fair value are retranslated to the functional
currency at the exchange rate at the date that the fair value was
determined. Foreign currency differences arising on retranslation are
recognised in profit or loss, except for differences arising on the
retranslation of available-for-sale equity instruments, a financial
liability designated as a hedge of the net investment in a foreign
operation, or qualifying cash flow hedges, which are recognised
directly in equity.
1.11 Offsetting
Financial assets and liabilities are offset and the net amount
reported in the statement of financial position when the entity holds
a current legally enforceable right to set off the recognised amounts
or has an intention to either settle on a net basis, or realise the
asset and settle the liability simultaneously.
1.12 New standards and interpretations adopted in the current year
The following standards, interpretations and amendments to standards
and interpretations are effective for annual periods on or after 1
January 2009 and early adopted by management in the current year:
IAS 1 - Presentation of Financial Statements
The amendment introduces the term total comprehensive income, which
represents changes in equity during a period other than those changes
resulting from transactions with owners in their capacity as owners.
Total comprehensive income may be presented in either a single
statement of comprehensive income (effectively combining both the
profit or loss and all non-owner changes in equity in a single
statement), or in profit or loss and a separate statement of other
comprehensive income. The amendment also requires two sets of
comparative numbers to be provided for the financial position in any
year where there has been a restatement or reclassification of
balances.
IAS 32 - Financial Instruments: Presentation and IAS 1 Presentation
of Financial Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation
The amendment requires puttable instruments and instruments that
impose on the entity an obligation to deliver to another party a pro
rata share of the net assets of the entity only on liquidation, to be
classified as equity if certain conditions are met. Entities should
apply the amendments for annual periods beginning on or after 1
January 2009. The amendment is not expected to have a material impact
on the financial statements as there are no such instruments.
2. Other notes
The results of operations for the period are reflected in the
summarised financial statements presented.
There have been not material post-balance sheet events.
NEWGOLD ISSUER LIMITED
DIRECTORS` REPORT FOR THE YEAR ENDED 31 MARCH 2009
The directors have pleasure in presenting their report for the year ended 31
March 2009.
Nature of business
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 Limited on 2 November 2004.
At 31 March 2009 95 636 300 (2008: 94 436 300) securities were in issue with a
total market value of R8 165 642 796 (2008: R7 061 686 954). The amount of gold
bullion held at the custodian at 31 March 2009 was 29.2246 tonnes. The return
from inception was 236.50% and annualised return from inception was 31.67%.
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. The custodian has suitable insurance cover and this cover has
been reviewed by management and the directors.
ANNUAL FINANCIAL STATEMENTS
The complete set of 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 2009
NewGold Issuer Limited
Sponsor
Java Capital (Proprietary) Limited
Date: 30/06/2009 17:23:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
