| Wed 30 Jun 2010, 17:02 | | THG - Trackhedge (Proprietary) Limited - Audited summarised financial statements |
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JSE NRD
THG
THG - Trackhedge (Proprietary) Limited - Audited summarised financial statements
for the year ended 31 March 2010
TRACKHEDGE (PROPRIETARY) LIMITED
(Registration number 2003/008245/07)
Issuer code: THG
JSE Code: NRD
ISIN: ZAE000047841
("Trackhedge" or "the ETF")
AUDITED SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010
Statement of Financial Position as at 31 March 2010
Notes 2010 2009
ASSETS R R
Cash and cash equivalents 9 142 1 190
Unlisted investments 702 500 976 442 428 496
TOTAL ASSETS 702 510 118 442,429,686
EQUITY AND LIABILITIES
Share capital and reserves (5 351) (63 871)
Share capital 1 1
Accumulated Loss (5 352) (63 872)
Liabilities
Trade and other payables 14 493 45 917
Current Tax Payable - 19 144
NewRand Index Securities 702 500 976 442 428 496
TOTAL EQUITY AND 702 510 118 442 429 686
LIABILITIES
Statement of comprehensive income for the year ended 31 March 2010
Notes 2010 2009
R R
Revenue
Interest Income - 23
Trust distribution 89 445 -
Write off 42 687 -
Unrealised gain/(loss) 144 888 528 (116 481 721)
on unlisted investments
Profit/(loss) before 145 020 660 (116 481 698)
taxation
Income tax expense (73 612) (6)
Profit /(loss) for the 144 947 048 (116 481 704)
year
Other comprehensive
income
Fair value adjustment on (144 888 528) 116 481 721
NewRand Index securities
Other comprehensive - -
income for the year, net
of tax
Total comprehensive 58 520 17
income for the year
Statement of changes in equity for the year ended 31 March 2010
Share Retained Total
Capital Earnings
R R R
Balance as at 1 April 2008 1 (63 889) (63 888)
Total comprehensive income 17 17
for the year
Balance at 31 March 2009 1 (63 872) (63 871)
Total comprehensive income 58 520 58 520
for the year
Balance at 31 March 2010 1 (5 352) (5 351)
Statement of cash flows for the year ended 31 March 2010
Notes 2010 2009
R R
Net cash inflow from operating 7 952 46
activities
Cash generated by operations 11 263 3 253
Taxation paid (92 756) (3 230)
Interest received - 23
Trust distribution 89 445 -
Net cash inflow from investing - -
activities
Net cash inflow from financing - -
activities
Net increase in cash and cash 7 952 46
equivalents
Cash and cash equivalents at 1 190 1 167
the beginning of year
Cash and cash equivalents at 9 142 1 213
end of year
NOTES
1. Accounting policies
Basis of preparation for the complete financial statements
We have prepared the financial statements in accordance with International
Financial Reporting Standards and the Companies Act.
The financial information incorporates the principal accounting policies
set out below which have been applied consistently by Trackhedge (Pty) Ltd
for all periods presented.
The accounting policies and methods of computation are consistent with the
prior year except for the first time implementation of IFRS 8: Operating
Segments.
KPMG Inc, the appointed auditor, expressed an unqualified opinion on the
audited financial statements.
The complete set of financial statements are available for inspection at
the registered offices of the NewFunds Collective Investment Scheme in
Securities.
Basis of preparation for the summarised financial statements
We have prepared the summarised set of financial statements in the SENS
announcement in accordance with:
- the recognition and measurement requirements of International
Financial Reporting Standards, and
- the presentation and disclosure of IAS 34: Interim Financial
Reporting,
- the Companies Act of South Africa
- the JSE listing requirements,
- the AC 500 series issued by SAICA.
The financial statements as summarised have been extracted from the
complete set of audited financial statements.
KPMG Inc, the appointed auditor, expressed an unqualified opinion on the
summarised financial statements. The unqualified audit opinions on both the
complete and the summarised sets of financial statements are available for
inspection at the registered offices of the Trackhedge (Pty) Ltd.
The accounting policies and methods of computation are consistent with the
complete set of audited financial statements.
1.1 Statement of compliance
The financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board (IASB), in the manner required by the Companies Act of
South Africa
The complete set of financial statements were authorised for issue by the
Board of Directors of Trackhedge (Proprietary) limited on 18 June 2010.
The summarised financial statements were authorised for issue by the Board
of Directors on 30 June 2010.
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 Functional and presentation currency
Items included in the financial statements of the company are measured
using the currency of the primary economic environment in which the entity
operates (the functional currency). The company financial statements are
presented in South African rand, which is the company`s functional and
presentation currency.
1.4 Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments comprise unlisted investments and
issued securities, cash and cash equivalents, and trade and other payables.
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
or loss. Regular way purchases and sales of financial instruments are
accounted for on trade date. Subsequent measurement of non-derivative
financial instruments is described below.
Classification and subsequent measurement
Unlisted investments are designated at fair value through profit or loss
and are subsequently measured at fair value. Fair value gains and losses
are taken to profit or loss.
Cash and cash equivalents comprise cash balances and call deposits with an
original maturity of three months or less measured at amortised cost.
Issued securities are subsequently measured at fair value. Fair value gains
and losses are taken to the profit or loss.
Trade and other payables are measured at amortised cost using the effective
interest method.
Other non-derivative financial instruments are measured at amortised cost
using the effective interest method, less any impairment losses.
Amortised cost is calculated by taking into account any discount or premium
on acquisition and fees and costs that are an integral part of the
effective interest rate. The amortisation is included in "Interest income"
in the statement of comprehensive income. The carrying amount of impaired
loans on the statement of financial position is reduced through the use of
impairment.
Financial instruments are designated 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.
1.5 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 been 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 asset.
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 the
consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.
1.6 Impairment of financial assets
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.
Objective evidence that a financial asset is impaired includes observable
data that comes to the attention of the company and may include the
following loss event:
- The disappearance of an active market for that financial asset because
of financial difficulties.
Only financial assets that are not designated at fair value through profit
or loss are considered for impairment.
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 or loss.
An impairment loss is reversed if the reversal can be related objectively
to an event occurring after the impairment loss was recognised. For
financial assets measured at amortised cost, the reversal is recognised in
profit or loss.
1.7 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 and intends either to
settle on a net basis, or realise the asset and settle the liability
simultaneously.
1.8 Share capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of ordinary shares are recognised as a deduction
from equity net of any tax effects.
1.9 Revenue
Revenue comprises interest income.
Interest, including interest income from non-derivative financial assets at
fair value through profit or loss, is recognised by using the effective
interest method. The effective interest rate is the rate that exactly
discounts the estimated future cash payments and receipts through the
expected life of the financial asset or liability (or, where appropriate, a
shorter period) to the carrying amount of the financial asset or liability.
1.10 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 in other comprehensive income or
recognised directly 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 reporting date. Deferred taxation is charged to profit or loss except
to the extent that it relates to a transaction that is recognised directly
in other comprehensive income or 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 profit or loss,
except to the extent that it relates to items previously charged or
credited to other comprehensive income or recognised directly in 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
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.
Deferred tax is not recognised for temporary differences arising on the
initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit
nor loss.
1.11 Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised and in any future periods affected.
Information about significant areas of estimation uncertainty and critical
judgements in applying the accounting policies that have the most
significant effect on the amounts recognised in the financial statements is
included in note 10 - Taxation, and note 2 - Unlisted Investments
1.12 New standards and interpretations adopted in the current year
The following standards, interpretations and amendments to standards and
interpretations are effective for the year ended 31 March 2010 year.
IFRS 7- Improving Disclosures about Financial Instruments
Amendments require disclosures of financial instruments measured at fair
value to be based on a three-level fair value hierarchy that reflects the
significance of the inputs in such fair value measurements. Amendments
require additional qualitative and quantitative disclosures of liquidity
risk. Amendments are effective for annual periods beginning on or after 1
January 2010. The amendment also requires two sets of comparative numbers
to be provided for the financial year when this were applicable.
1.13 New standards and interpretations not yet adopted
The following standards, interpretations and amendments to standards and
interpretations are not yet effective for the year ended 31 March 2010 and
have not been applied in preparing the financial statements:
IFRS 9 Financial Instruments
IFRS 9 retains but simplifies the mixed measurement model and establishes
two primary measurement categories for financial assets: amortised cost and
fair value. The basis of classification depends on the entity`s business
model and the contractual cash flow characteristics of the financial asset.
The guidance in IAS 39 on impairment of financial assets and hedge
accounting continues to apply. Amendments are effective for annual periods
beginning on or after 1 January 2013. The amendment might affect the
disclosure of Trackhedge (Proprietary) Limited financial instruments on the
financial statements.
IAS 24 Related Party Disclosures
The revised IAS 24 Related Party Disclosures amends the definition of a
related party and modifies certain related party disclosure requirements
for government-related entities. Amendments are effective for annual
periods beginning on or after 1 January 2011. The amendment might affect
the disclosure of Trackhedge (Proprietary) Limited related party disclosure
on the financial statements.
1.14 Operating Segments
The Index securities issued by Trackhedge (Proprietary) Ltd are listed on
the JSE. Thus Trackhedge (Proprietary) Ltd falls within the scope of IFRS
8: Operating segments.
Comparative segment information has been presented in conformity with the
transitional requirements of such standard. The application of the
standard only impacts the presentation and disclosure aspect of the
financial statements.
This listed investment vehicle offers only
one product, being the specific portfolio,
tracking the specific identified index.
Information regarding the results of the reportable
segment is disclosed in the Financial statements as
currently set out, thus no further IFRS 8 disclosure is
required.
The complete set of financial statements are available on Absa Capital`s
website (www.absacapitaletfs.com).
30 June 2010
Sponsor:
J.P. Morgan Equities Limited
Date: 30/06/2010 17:02:01 Produced by the JSE SENS Department.
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