| Wed 30 Jun 2010, 17:01 | | GLD - NewGold Issuer Limited - Audited summarised financial statements for the |
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JSE GLD
GLD
GLD - NewGold Issuer Limited - Audited summarised financial statements for the
year ended 31 March 2010
NewGold Issuer Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2004/014119/06)
Share code: GLD
ISIN code: ZAE000060067
("NewGold")
AUDITED SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2010
2010 2009
ASSETS R R
Non-current asset
Deferred tax asset 292 023 275 851
Current assets 12 959 368 924 8 178 724 852
Trade and other 9 247 246 8 080 311
receivables
Cash and cash 192 186 2 244 998
equivalents
Gold bullion 12 949 929 492 8 168 399 543
TOTAL ASSETS 12 959 660 947 8 179 000 703
EQUITY AND LIABILITIES
Share capital and 5 229 493 1 370 943
reserves
Ordinary share capital 100 100
Retained earnings 5 229 393 1 370 843
Non-current
liabilities
Debentures 12 945 494 003 8 165 642 797
Current liabilities 8 937 451 11 986 963
Trade and other 8 699 812 8 779 303
payables
Current tax payable 237 639 3 207 660
TOTAL EQUITY AND 12 959 660 947 8 179 000 703
LIABILITIES
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2010
2010 2009
R R
Revenue 46 032 132 27 921 199
Monthly gold sales charge 45 795 312 27 502 757
Finance income 236 820 418 442
Other income 86 663 586 139
Other expenses (17 545 084) (14 753 722)
Finance charges (633) -
Fair value adjustments 5 (275 989)
Profit before taxation 28 573 083 13 477 627
Income tax expense (9 523 679) (4 801 912)
Profit for the year 19 049 404 8 675 715
Other comprehensive
income
Other comprehensive - -
income for the year, net
of tax
Total comprehensive 19 049 404 8 675 715
income for the year
Basic and diluted 19 049 399 8 951 705
earnings per share
(cents)
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2010
Share Retained Total
Capital Earnings
R R R
Balance at 1 April 2008 100 3,679,311 3,679,411
Total comprehensive 8,675,715 8,675,715
income for the year
Dividends declared and (10,984,183) (10,984,183)
paid
Balance at 31 March 2009 100 1,370,843 1,370,943
Total comprehensive 19,049,404 19,049,404
income for the year
Dividends declared and (15,190,854) (15,190,854)
paid
Balance at 31 March 2010 100 5,229,393 5,229,493
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2010
2010 2009
R R
Net cash (374 073) (46 528)
(outflow)/inflow from
operating activities
Cash generated from 27 089 833 16 151 948
operations
Interest received 236 820 418 442
Dividends paid (15 190 854) (10 984 183)
Taxation paid (12 509 872) (5 632 735)
Net cash outflow from (4 769 180 400) (332 100 000)
investing activities
Proceeds from the sale 1 863 040 000 1 265 900 000
of gold bullion
Purchase of gold (6 632 220 400) (1 598 000 000)
bullion
Net cash inflow from 4 767 501 662 331 363 610
financing activities
Proceeds from debenture 6 632 220 400 1 598 000 000
issue
Debentures redeemed (1 863 040 000) (1 265 900 000)
Unsold Gold Bullion (1 678 738) (736 390)
Net (decrease)/increase (2 052 812) (782 918)
in cash and cash
equivalents
Cash and cash 2 244 998 3 027 916
equivalents at the
beginning of year
Cash and cash 192 186 2 244 998
equivalents at end of
year
NOTES
1 Accounting policies
The financial information incorporate the principle accounting policies set
out below which have been applied consistently for all periods presented by
NewGold Issuer Limited. The functional & presentation currency is the ZAR
and figures are rounded to the nearest cent.
Basis of preparation for the complete financial statements
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 is obtainable for inspection at
the registered offices of NewGold Issuer Ltd.
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 the International
Financial Reporting Standards,
- the presentation and disclosure of IAS 34: Interim Financial
Reporting,
- the JSE listing requirements,
- the Companies Act Of South Africa
The financial statements as summarised have been extracted from the
complete set of audited financials.
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 financials are available for inspection
at the registered offices of NewGold Issuer 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) and 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 on 10 June 2010.
The summary of the 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 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 results 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 remeasured 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 Issuer Limited
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 effective interest method, less any impairment loss.
1.4 Derecognition of financial instruments
The company derecognises a financial asset when and only when:
i) The contractual rights to the cash flows arising from the financial
assets have expired or been forfeited by the company; or
ii) It transfers the financial asset including substantially all the risks
and rewards of ownership of the assets; or
iii) 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.
1.5 Impairments
A financial asset not carried at fair value through profit and loss 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 or company of assets 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.
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.
1.6 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.
1.7 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.
1.8 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.
Finance 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.
1.9 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.
1.10 Expenses recognition
Expenses are recognised in the statement of comprehensive income when
decrease in future economic benefits related to a decrease in an assets or
an increase in a liability has arisen that can be measured reliably.
Management and administration expenses are recognised in profit or loss as
incurred.
1.11 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. 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.
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 as it affects neither accounting nor taxable profit
nor loss.
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.
1.12 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 11 - Taxation.
1.13 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
risks specific to the liability.
Future operating costs or losses are not provided for.
1.14 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.
1.15 Foreign currency translation and balances
Transactions in foreign currencies are translated to the respective
functional currencies of Group entities at exchange rates at the dates of
the transactions. 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, in the fair value adjustment line.
1.16 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 to either
to settle on a net basis, or realise the asset and settle the liability
simultaneously.
1.17 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
2010:
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
January 2009. The amendment also requires two sets of comparative numbers
to be provided for the financial year where the amendment is applicable.
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.
1.18 New standards and interpretations not yet adopted
The following standards, interpretations and amendments to standards and
interpretations issued are not yet effective for the year ended 31 March
2010 and have not been applied in preparing these financial statements:
IAS 24 Related Party Disclosures
The revised IAS 24 Related Party Disclosure 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 NewGold Issuer Limited related party on 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 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 the annual periods
beginning on or after 1 January 2013. The Amendment might affect disclosure
of NewGold Issuer Limited financial instruments on the financial
statements.
1.19 Operating Segments
The debentures issued by NewGold Issuer Limited are listed on the JSE and
therefore 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
exchange traded fund, 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 full set of annual financial statements is available on Absa Capital`s
website (www.absacapitaletfs.com).
Date: 30 June 2010
Sponsor:
J.P. Morgan Equities Limited
Date: 30/06/2010 17:01:01 Produced by the JSE SENS Department.
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