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NRD - Trackhedge (Proprietary) Limited - Audited summarised financial statements
for the year ended 31 March 2011
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 2011
Statement of financial position as at 31 March 2011
2011 2010
ASSETS R R
Non-current assets
Unlisted investments 641 322 370 702 500 976
Current assets
Cash and cash equivalents 9 248 9 142
Trade and other receivables 61 307 -
TOTAL ASSETS 641 392 925 702 510 118
EQUITY AND LIABILITIES
Share capital and reserves 29 574 (5 351)
Share capital 1 1
Retained Earnings/ 29 573 (5 352)
(Accumulated Loss)
Liabilities
Non-current liabilities
NewRand Index securities 641 322 370 702 500 976
Current liabilities
Trade and other payables 40 981 14 493
TOTAL EQUITY AND
LIABILITIES 641 392 925 702 510 118
Statement of comprehensive income for the year ended 31 March 2011
2011 2010
R R
Revenue
Interest income 106 -
Trust distribution 48 368 89 445
Write off - 42 687
Unrealised gain on 112 889 388 144 888 528
unlisted investments
Fair value adjustment on (112 889 388) (144 888 528)
NewRand Index securities
Profit before taxation 48 474 132 132
Income tax expense (13 549) (73 612)
Total comprehensive 34 925 58 520
income for the year
Profit attributable to:
Owners of the entity 34 925 58 520
Statement of changes in equity for the year ended 31 March 2011
Share Retained Total
Capital Earnings
R R R
Opening Balance as at 1 (63 872) (63 871)
April 2009 1
Total comprehensive income 58 520 58 520
for the year
Balance at 31 March 2010 1 (5 352) (5 351)
Other comprehensive income 34 925 34 925
for the year
Balance at 31 March 2011 1 29 573 29 574
Statement of cash flows for the year ended 31 March 2011
2011 2010
R R
Net cash inflow from operating 106 7 952
activities
Cash (utilised)/generated by (21 880) 11 263
operations
Taxation paid (26 488) (92 756)
Interest received 106 -
Trust distribution 48 368 89 445
Net increase in cash and cash 106 7 952
equivalents
Cash and cash equivalents at 9 142 1 190
the beginning of year
Cash and cash equivalents at 9 248 9 142
end of year
NOTES
1. Accounting policies
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), the AC500 series as issued by the Accounting Practice Board, IAS
34 Interim Financial Reporting and in the manner required by the Companies Act
of South Africa.
The financial statements were authorised for issue by the Board of Directors
on 24 June 2011.
1.2 Basis of measurement
The financial statements have been prepared on the accrual basis, except for the
statement of cash flows and 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`s 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 as 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.
Issued securities are designated at fair value through profit or loss. This
designation is chosen 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. Subsequently, the fair value is remeasured, and
gains and losses from changes therein are recognised in profit or loss.
The method of determining the fair value can be analysed as unadjusted quoted
prices in active markets where the quoted price is readily available and the
price represents actual and regularly occurring market transactions on an arm`s
length basis.
Cash and cash equivalents comprise cash balances and call deposits with an
original maturity of three months or less and is measured at amortised cost.
Trade and other payables are measured at amortised cost using the effective
interest method.
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.
Any discount or premium on acquisition and fees and costs are included as
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 profit and loss.
The net gains or net losses on items at fair value through profit and loss
include interest or dividend income.
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.
On derecognition of a financial asset in its entirety, the difference between
the carrying amount and the sum of the consideration received (including any new
asset obtained less any new liability assumed) is recognised in profit or loss.
1.6 Impairment
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 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.
1.10 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
11 - Taxation, and note 2 - Unlisted Investments
1.12 Operating Segments
The Index Securities issued by Trackhedge (Pty) Ltd are listed on the JSE, thus
Trackhedge (Pty) Ltd falls within the scope of IFRS 8 : Operating Segments.
1.13 New standards and interpretations not yet adopted in the
current year
There are no new standards, interpretations and amendments to standards and
interpretations that are effective for annual periods on or after 1 January 2011
that have been early adopted by management in the current year.
1.14 New standards and interpretations not yet adopted
There are new standards, interpretations and amendments to standards and
interpretations relevant to the entity that are not yet effective for the year
ended 31 March 2011 and have not been applied in preparing these financial
statements. These include the following Standards and Interpretations that are
applicable to the business of the entity and may have an impact on future
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.
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.
Audit report
KPMG Inc, Trackhedge (Proprietary) Limited`s independent auditor, has audited
the annual financial statements of Trackhedge (Proprietary) Limited from which
the summarised results contained in this announcement have been derived, and has
expressed an unmodified opinion on the annual financial statements.
Their audit report is available for inspection at the registered office of
Trackhedge (Proprietary) Limited
The complete set of financial statements are available on Absa Capital`s website
(www.absacapitaletfs.com).
Sponsor:
J.P. Morgan Equities Limited
Date: 29/06/2011 17:08:01 Supplied by www.sharenet.co.za
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