| Thu 29 Jun 2006, 17:37 | | NewGold Issuer Limited - Abridged Audited Financia |
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JSE GLD
GLD
NewGold Issuer Limited - Abridged Audited Financial Statements For
The Period Ended 31 March 2006
NewGold Issuer Limited
(Formerly Lexpub 39 Investments Limited)
(Incorporated in the Republic of South Africa)
(Registration No. 2004/014199/06)
Share code: GLD & ISIN code: ZAE000060067
("NewGold" or "the company")
ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2006
INCOME STATEMENT 2006 2005
For the year ended 31 March 2006 R R
Revenue 2 333 558 857 818
Fee income 2 019 505 857 818
Finance Income 36 516 -
Other Income 227 537 -
Operating expenses (1 341 429) (1 133 383)
Expenses (1 341 429) (520 629)
Finance costs - (612 754)
Fair value adjustments (381 543) 275 565
Net profit for the year before taxation 610 586 -
Income tax expense (97 156) -
Net profit for the year after taxation 513 430 -
BALANCE SHEET 2006 2005
At 31 March 2006 R R
ASSETS
Non-current assets
Deferred tax 190 562 -
Current assets
Accounts receivable 98 406 55 140
Cash and cash equivalents 1 244 568 1 282 220
Gold bullion 1 221 777 371 245 635 657
TOTAL ASSETS 1 223 310 907 246 973 017
EQUITY AND LIABILITIES
Share capital and reserves 513 530 100
Ordinary share capital 100 100
Retained income 513 430 -
Non-current liabilities
Debentures 1 221 489 672 245 067 572
Current liabilities 1 307 705 1 905 345
Accounts payables 1 019 987 1 905 345
Taxation payable 287 718 -
TOTAL EQUITY AND LIABILITIES 1 223 310 907 246 973 017
CASH FLOW STATEMENT 2006 2005
For the year ended 31 March 2006 R R
Cash flows from operating activities
Cash (utilised)/generated from operations (74 168) 1 894 874
Interest paid - (612 754)
Interest received 36 516 -
Net cash (utilized)/generated from (37 652) 1 282 120
operating activities
Cash flows from investing activities
Investment in gold bullion (816 136 000) (211 998 731)
Net cash outflow from investing (816 136 000) (211 998 731)
activities
Cash flows from financing activities
Proceeds from debenture issue 816 136 000 211 998 731
Proceeds from issuing share capital - 100
Net cash inflow from financing activities 816 136 000 211 998 831
Net (decrease)/increase in cash and cash (37 652) 1 282 220
equivalents
Cash and cash equivalents at beginning of 1 282 220 -
year
Cash and cash equivalents at end of year 1 224 568 1 282 220
STATEMENT OF CHANGES IN EQUITY Share Retained Total
capital income
For the year ended 31 March 2006 R R R
Shares issued during the year 100 - 100
Net income for the year - - -
Balance at 31 March 2005 100 - 100
Net income for the year - 513 430 513 430
Balance at 31 March 2006 100 513 430 513 530
Notes to the financial statements
For the period ended 31 March 2006
1. ACCOUNTING POLICIES
The financial information incorporate the principle accounting
policies set out below.
1.1 Statements of compliance
The financial statements are prepared in accordance with
International Financial Reporting Standard ("IFRS") and its
interpretations by International Accounting Standard Board
("IASB") and AC500 series issued by the Accounting Practices
Board, and in the manner required by the South African
Companies Act, 1973
1.2 Basis of preparation
The financial statements are prepared on a historic cost basis,
except for financial instruments, which are accounted for as
set out in note 1.3 and gold bullion which is accounted for as
set out in note 1.4.
1.3 Financial instruments
Measurement
Financial instruments are initially measured at fair value at
transaction date, which includes transaction costs. Subsequent
to initial recognition these instruments are measured as set
out below:
Debentures
The debentures are categorised as fair value through profit and
loss and therefore are initially measured at fair value
excluding transaction costs. The debentures are subsequently
measured at fair value with adjustments being taken to the
income statement. The fair value of the debentures is based on
quoted gold prices after adjusting for initial expenses and
appropriate monthly gold sales charge.
Other financial assets and liabilities
Other financial assets and liabilities, namely trade and other
receivable and payables are measured at amortised cost less
impairment charges.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value at balance
sheet date.
Offset
Financial assets and financial liabilities are offset and the
net amount reported in the balance sheet when the company has
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
Financial instruments are recognised when, and only when, the
company becomes a party to the contractual provisions of the
particular instrument.
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 Gold Bullion
Gold bullion is carried at fair value less selling costs.
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.
Finance income
Interest is recognised on a time proportion basis, taking
account of the principal outstanding and the effective rate
over the period to maturity, when it is probable that such
income will accrue to the Trust.
Other Income
This income is a subsidy from the World Gold Council. These
funds are to be utilised to market NewGold.
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 liability
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.
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
reduced to the extent that it is no longer probable that the
related tax benefits will be realised.
1.7 Impairments
The carrying amounts of the company"s assets are reviewed at
each balance sheet date to determine whether there is an
indication of impairment. If any such indication exists, the
asset"s recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount
of an asset or its cash generating unit exceeds its recoverable
amount. Impairment losses are recognised in the Income
Statement
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 discounted. The discount rate used is 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 Forthcoming requirements
As at the date of authorisation of these financial statements,
the following Standard and Interpretations, which are relevant
to the company, were in issue but not yet effective, and have
not been early adopted in the financial statements.
IFRS 7: Disclosure (effective 1 January 2007)
IFRS 7 supersedes IAS 30, Disclosures in the Financial
Statements of Banks and Similar Financial Institutions and the
disclosure requirements in IAS 32. IFRS 7 requires additional
disclosure over and above that required by IAS 32 in respect of
the following:
The significance of financial instruments for an entity"s
financial position and performance
The nature and extent of risks arising from financial
instruments; and
Capital objectives and policies.
The adoption of IFRS will have no impact on the company"s
accounting policies for financial instruments.
2 Transition to IFRS
The transition to IFRS had no impact on reported earnings for
2006 or the company"s balance sheets on 31 March 2006 and 1
April 2004.
COMMENTARY
NATURE OF BUSINESS
NewGold Issuer Limited (Registration Number 2004/014119/06) ("Issuer
or NewGold" or "the company") 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, 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 listing on the JSE Limited ("JSE")
on 2 November 2004. At 31 March 2006, 34 036 300 (2005: 9 236 300)
securities were in issue with a total market value of R 1 221 489 672
(2005: R 245 067 572). The amount of gold bullion held at the
custodian at 31 March 2006 was 10.5268 tons. The return from
inception was 35.98% and annualised return from inception was 24.28%.
ANNUAL FINANCIAL STATEMENTS
These annual financial statements have been audited by the
independent auditors, KPMG Inc., and their unmodified audit report is
available for inspection at the company"s registered office.
29 June 2006
Lead sponsor
Java Capital (Proprietary) Limited
Joint sponsor
ABSA Capital - Corporate Finance
Originator
ABSA Capital
Date: 29/06/2006 05:37:49 PM Produced by the JSE SENS Department
