S H R E E M I N E R A L S L I M I T E D
ACN 130 618 683
2010 ANNUAL REPORT
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S H R E E M I N E R A L S L T D
TABLE OF CONTENTS
Corporate Directory
Directors’ Report
Corporate Governance Statement
Auditors’ Independence Confirmation
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditors’ Report
Shareholder Information
1
2
12
17
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19
20
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22
41
42
44
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S H R E E M I N E R A L S L T D
CORPORATE DIRECTORY
DIRECTORS
Sanjay Loyalka
Mahendra Pal
Arun Kumar Jagatramka
Andy Lau
COMPANY SECRETARY
Stephen Ledger
REGISTERED OFFICE
Suite 1a
46 Ord St
West Perth WA 6005
Ph: 08 9322 4944
Fax: 08 9322 4946
SOLICITORS
Steinepreis Paganin
Level 4
16 Milligan St
Perth WA 6000
AUDITORS
Greg Ledger Pty Ltd
Suite 3
20 Altona St
West Perth WA 6005
BANKERS
Commonwealth Bank of Australia
St Georges Tce
Perth WA 6000
.
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DIRECTORS’ REPORT
The Directors present this report together with the financial report of Shree Minerals Ltd (‘the Company’) for
the year ended 30th June 2010 and the auditors' report thereon.
DIRECTORS
The names of the Directors in office at any time during or since the end of the year are:
Mr Sanjay Loyalka (Appointed 14 April 2008)
Mr Mahendra Pal (Appointed 26 August 2008)
Mr Arun Jagatramka (Appointed 30 June 2009)
Mr Andy Lau (Appointed 18 November 2009)
COMPANY SECRETARY
Mr Stephen Ledger (Appointed 14 April 2008)
PRINCIPAL ACTIVITIES
The principal activities of the Company during the financial year consisted of mineral exploration and
development.
There have been no significant changes in these activities during the financial year.
OPERATING RESULTS
The net loss of the Company after providing for income tax amounted to $308,743 (2009: $121,423).
DIVIDENDS PAID OR RECOMMENDED
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way
of a dividend to the date of this report.
REVIEW OF OPERATIONS AND ACTIVITIES
Shree Minerals Ltd’s (the Company or Shree) exploration activities are confined to the State of Tasmania
where it has 7 Exploration Licenses. The Company was formed in April 2008 and listed on the Australian
Securities Exchange in February 2010. Since formation, the Company has actively explored for gold and iron at
its Sulphide Creek and Nelson Bay tenements respectively and has been examining the remaining tenement
lands for their mineral potential.
The company’s exploration activities over the past year have included:
Data review, geological reconnaissance work, diamond drilling (1099m along 9 holes), core logging (for
geological and geotechnical information), sampling, analysis and bulk density determination of mineralised (for
gold and iron mineralisation) parts of drill cores at the Sulphide Creek and Nelson Bay River tenements.
Additionally, ground magnetic surveys at Nelson Bay River and Mt Bertha tenements, upgrading of access and
preparation of drill sites for drilling at the Sulphide Creek and Nelson Bay River tenements, study of Mineral
Resources Tasmania (MRT) airborne geophysical data (magnetics – radiometric) for Nelson Bay River and Mt
Bertha tenements for defining exploration targets was carried out.
Field trips were also made at Catamaran & coal outcrops were sighted and drilling options were evaluated.
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DIRECTORS’ REPORT
The Farmin Joint Venture agreement which was entered in the previous year was varied during the year such
that 100% interest in Mt Sorell and 75% interest in Mt Bertha has been transferred to Shree Minerals. Further,
it has the option to buy out balance 25% for a Royalty stream. A review of Mt Bertha licence resulted in
rationalisation of the licence area to aeromagnetic anomaly areas covering a total of 134 km2.
As per discussions with MRT, no exploration activity was conducted at Adamsfield pending clarity of policy
regarding future activity in the area as it falls within World Heritage area.
Results
The work done has established presence of hematite–goethite mineralisation over more than 1 km strike
length at the Nelson Bay River tenement and strengthened the Company’s belief that the Nelson Bay River
(NBR) Project has potential to produce Direct Shipping Ore (DSO) with grades of greater than 60% Fe.
Additionally, the study of MRT flown airborne magnetic data suggests that magnetite in part of the Nelson Bay
River could continue beyond 300 metres depth.
Drilling results at the Sulphide Creek Prospect suggest strong potential for discovering moderate to high-grade
gold mineralisation at depth (drilling intersected gold mineralisation to >168 m depth and remains open at
depth and along strike) and suggests that the Davie Prospect has excellent potential for hosting a sizable gold
resource.
Outlook 2010/2011
Based on the encouraging exploration results, further to normal ongoing exploration activities, in the coming
months following activities will be undertaken:
Sulphide Creek (Davie Gold Prospect)
Examination of available airborne geophysical data (magnetics and radiometric), which in addition to MRT
data, may involve purchase of multiclient data, geological mapping and interpretation of the data for
defining exploration targets.
Drilling of about 500m (diamond) at the Sulphide Creek – Davie prospect, and sampling of mineralized
portions.
If feasible, preliminary estimation of gold mineralisation at Davie Prospect.
Nelson Bay River Iron Ore Project
Checking and compilation of available geological mapping and preparation of a geological map of the NBR
and Rebecca Creek tenements and environs and running of geological profiles at 100 m line spacing for
planned 2010/2011 drilling.
Drilling of 2000 m (combination of RC percussion and diamond) for defining goethitic-hematite
mineralisation at Nelson Bay River.
Upgrading resource estimates for goethitic-hematite and magnetite using 2009/2010 drilling
Checking of targets suggested by recent geophysical study by consultant Cowan Geodata Services
Mt Bertha
Study of MRT airborne geophysical data, on ground checking of recently indentified geophysical targets and
planning of further work.
Further, the Company, will carry out planning of exploration programme for MRT approval, preparation of
access tracks and drill sites, and other exploration related tasks; inviting tenders for earthwork, drilling, assay
labs, hiring of suitable technical personnel, etc.
In addition to the above exploration activities the following work, during the 2010/2011 period, is also
planned:
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DIRECTORS’ REPORT
A review and compilation of all available geophysical data (multiclient aeromagnetic and radiometric data,
data accessible via MRT and private company data) for the Sulphide Creek and Mt Sorell tenements for
defining exploration targets and geological examination of Mt Sorell tenement lands.
The Company’s overall exploration plan remains on schedule. However, it should be noted that the shortage of
suitable technical staff and equipment, evident across the resources industry as a whole, may impact on
exploration costs and schedules.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
On 16 February 2010, the company was admitted to the official list of the Australian Securities Exchange.
Since that time through to the date of this report, the company confirms that it has used cash and assets
readily convertible to cash that it had at the time of admission in a way consistent with its business objectives.
In the opinion of the Directors there were no other significant changes in the state of affairs of the Company
that occurred during the financial year under review.
FINANCIAL POSITION
The net assets of the Company are $7,721,270 (2009: $2,448,516)
The Directors believe the Company is in a financial position to pursue its current operations.
AFTER BALANCE DATE EVENTS
There has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company to
affect substantially the operations of the Company, the results of those operations or the state of affairs of the
Company in subsequent financial years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Company intends to continue to pursue its goals to acquire and explore mineral deposits and explore
prospective tenements.
ENVIRONMENTAL REGULATIONS
The Company holds various exploration licences to regulate its exploration activities in the State of Tasmania,
Australia. These licences include conditions and regulations with respect to the rehabilitation of areas
disturbed during the course of its exploration activities. So far as the Directors are aware there has been no
known breach of the Company’s licence conditions and all exploration activities comply with relevant
environmental regulations.
Tarkine National Heritage Listing – North West Tasmania : As a response to a nomination made in 2009 from
an environmental group (the Tarkine Coalition) , the Commonwealth Minister for the Environment (Mr Peter
Garrett) made an emergency listing of the Tarkine area as a place of national heritage significance. The
Tarkine nomination claimed that the Tasmanian government’s proposed Tarkine tourist road would diminish
the area’s wilderness values. Following the recent Tasmanian election, the Tasmanian government has
cancelled that road project. However, the emergency listing process cannot be revoked and must now go to
completion. The Australian Heritage Council accordingly is assessing the nominated area and will make
recommendations to the Commonwealth Minister in September this year. The Minister will then decide
whether to retain the listing, cancel it or amend it. The boundaries of the nominated area encompass three of
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Shree Minerals’ mining tenements (EL 41/2004 , EL 54/ 2008 & EL42/2004). Listing means that an assessment
of any mining development would need to consider impacts on wilderness values under the Commonwealth’s
Environment Protection and Biodiversity Conservation Act 1999. Shree Minerals has made two submissions to
the Heritage Council and has also met with the Commonwealth Department, presenting its case that the
boundaries of the nominated area improperly encompass large areas of land that clearly do not hold the
wilderness values for which the listing is being sought. In particular, Shree Minerals has argued that if the
listing is to be retained it should be based on appropriately amended boundaries, which would exclude two of
its mining tenements – Nelson Bay River (EL41/2004) and Rebecca Creek (EL54/2008). These tenements do
not have wilderness values.
DIRECTORS’ INTERESTS
Mr S Loyalka
Mr A Jagatramka
Mr M Pal
Mr A Lau
ORDINARY SHARES
FULLY PAID
25,315,000
15,000,000
-
-
INFORMATION ON DIRECTORS
Mr Sanjay Loyalka, Executive Director BCom (Hon), CA (Appointed 14 April 2008)
Mr Sanjay Loyalka has experience in various functional roles including CEO, General Management and
Corporate finance experience in mining and metals, manufacturing and logistics based industries in a
multinational environment.
Mr Loyalka is the founder of Investment advisory firm IACG Pty Ltd in Australia which has been engaged in
cross border M&A, strategic consulting as well as a mineral commodity trading business.
As the founding CEO and Managing Director, he was instrumental in the development of the Aditya Birla
Group’s operations within Australia. He led the acquisition of Nifty and Mount Gordon Copper mines,
successful development of the Nifty Sulphide project (a remote site, 2.5 million tpa underground mine,
concentrator plant and associated infrastructure) and operational restructure of Mont Gordon Copper
Operations. These led to a successful listing of the Company on the Australian Securities Exchange under an
IPO raising $300 million and inclusion in the ASX S&P 300 index.
Mr Loyalka has been a member of the Executive Council of Chamber of Minerals & Energy (Western Australia)
in 2005 and 2006.
Mr Arun Jagatramka, Non Executive Director BCom (Hons), FCA, AIMM (Appointed 30 June 2009)
Mr. Arun Kumar Jagatramka is a qualified Chartered Accountant with an all India 1st rank and gold medal. He
has an industrial experience of more than 11 years in the production of coal and coke, besides a prior
experience of more than 15 years in management consultancy and merchant banking. Widely regarded for his
foresight and knowledge, he is an acknowledged expert in matter of coal and coke and has presented papers
on the subject at number of International Conferences.
Mr. Arun Kumar Jagatramka is the Chairman and Managing Director of Gujarat NRE Coke Limited (India).
Under his able guidance, Gujarat NRE Coke Limited has become the largest independent non captive producer
of Met Coke in India – the only Indian entity to have moved backward into coal mine ownership in Australia
and forward into steel making, coupled with wind energy and upcoming waste heat power generation. The
Annual Compounded Growth of the company since inception is to the tune of 42% approx. with present
market capitalisation of USD 0.5 Billion.
Mr. Arun Kumar Jagatramka is a member of a number of boards, Gujarat NRE Coking Coal Limited (Australia),
Pike River Coal Limited (New Zealand), where Gujarat NRE group holds cornerstone stakes. He is also on the
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Board of Directors of Port Kembla Coal Terminal, Australian Coal Research Ltd, Wollongong Hawks as well as
Executive Committee Member of NSW Minerals Council.
He has been appointed as an honorary NSW ‘Sydney Ambassador’ to India. He is associated with the
Confederation of Indian Industry (Western Region), an apex representative of Indian Industry, by way of
heading sub-committees on ‘Integrity India’, ‘International Affairs’ besides being a member of ’Energy Panel’,
and ‘Environment and Conservation’ Sub-Committee.
Mr Mahendra Pal, Non Executive Director MSc, MSGAT (India), FAusIMM, MAICD (Australia) (Appointed 26
August 2008)
Mr Pal was an Executive Director – Exploration/Technical with FairStar Resources Ltd (FAS; an ASX listed
company) and has an extensive management experience in the mining and exploration industry, both in
Australia and internationally. He has worked across many commodities, including base metals, gold, uranium,
iron, coal, oil shale, oil and gas, among others.
Prior to joining Fairstar, Mr Pal spent two periods working with Rio Tinto, commencing in 1970. During this
time he was Principal Geologist for Hamersley Iron Pty Limited, where he made concealed iron ore discoveries
at the Mount Tom Price and Paraburdoo mines, and also worked in other senior management positions up
until 1999. From 1980 to 1984 he worked for ESSO Australia as a Sr. Professional Geologist and Exploration
Geologist for the Rundle Oil Shale Project feasibility study.
Mr Pal also ran his own Geological Consultancy business, from 2000 to April 2007, where he worked with a
range of exploration/mining companies including: Auiron Energy, Centrex Metals, Rio Tinto Exploration,
Hamersley Iron, Consolidated Minerals, Sinosteel Australia, Sumitomo Corporation, Golden West Resources
Ltd, and NEX Metals Exploration Ltd, in Australia. He also worked as a technical adviser to Rio Tinto Orissa
Mining Limited (a Rio Tinto Joint Venture with Orissa Mining Corporation, India), as a consultant to Tata Iron &
Steel in India, International Minerals, a Consulting Company in Iran, and Oswal Brasil Refinaria de Petróleo in
Brazil.
While with Fairstar Mr Pal made two new iron discoveries (Mahendra’s Find & Elaine’s Pride), 110 km
southeast of Kalgoorlie. These discoveries are the first of this kind in the area previously known for its gold
prospectivity.
Mr Andy Lau, Non Executive Director MBA
Mr Andy Lau is a professional engineer and held senior management responsibilities for over 10 years in
computer information and financing industry.
Mr Lau holds a MBA and graduate majoring in Computer Technology and also held the certificates of MCSE,
MCDBA, MCP and CCNA. He worked for a number of large international companies in securities, venture
capital and high-tech industries. Mr Lau has been the vice president of China Alliance International Holdings
Group Limited since 2005.
REMUNERATION REPORT
The full Board fulfils the roles of remuneration committee and is governed by the Company’s adopted
remuneration policy.
The information provided in this remuneration report has been audited as required by Section 308 (3c) of the
Corporations Act 2001.
Remuneration Policy
This policy governs the operations of the Remuneration Committee. The Committee shall review and reassess
the policy at least annually and obtain the approval of the Board.
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DIRECTORS’ REPORT
General director remuneration
Shareholder approval must be obtained in relation to the overall limit set for non-executive directors’ fees. The
Directors shall set individual Board fees within the limit approved by shareholders.
Shareholders must also approve the framework for any broad based equity based compensation schemes and
if a recommendation is made for a director to participate in an equity scheme, that participation must be
approved by the shareholders.
Executive remuneration
The Company’s remuneration policy for executive directors and senior management is designed to promote
superior performance and long term commitment to the Company. Executives receive a base remuneration
which is market related, and may be entitled to performance based remuneration at the ultimate discretion of
the Board.
Overall remuneration policies are subject to the discretion of the Board and can be changed to reflect
competitive market and business conditions where it is in the interests of the Company and shareholders to do
so.
Executive remuneration and other terms of employment are reviewed annually by the Remuneration
Committee having regard to performance, relevant comparative information and expert advice.
The Committee’s reward policy reflects its obligation to align executive’s remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Company. The main
principles of the policy are:
a.
b.
reward reflects the competitive market in which the Company operates;
individual reward should be linked to performance criteria; and
c. executives should be rewarded for both financial and non-financial performance.
The total remuneration of executives and other senior managers consists of the following:
a.
salary - executives director and senior manager receive a fixed sum payable monthly in cash;
b. bonus - executive directors and nominated senior managers are eligible to participate in a profit
participation plan if deemed appropriate;
c.
long term incentives - executive directors and nominated senior managers may also participate in
employee share option schemes, with any option issues generally being made in accordance with
thresholds set in plans approved by shareholders. The Board however, considers it appropriate to retain
the flexibility to issue options to executives outside of approved employee option plans in exceptional
circumstances; and
d. other benefits - executive directors and senior managers are eligible to participate in superannuation
schemes and other appropriate additional benefits.
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Remuneration of other executives consists of the following:
a.
salary - senior executive receives a fixed sum payable monthly in cash;
b. bonus - each executive is eligible to participate in a profit participation plan if deemed appropriate;
c.
long term incentives - each senior executive may, where appropriate, participate in share option schemes
which have been approved by shareholders; and
d. other benefits – senior executive are eligible to participate in superannuation schemes and other
appropriate additional benefits.
Non-executive remuneration
Shareholders approve the maximum aggregate remuneration for non-executive directors. The Remuneration
Committee recommends the actual payments to directors and the Board is responsible for ratifying any
recommendations, if appropriate. The maximum aggregate remuneration approved for directors is currently
$200,000.
It is recognised that non-executive directors’ remuneration is ideally structured to exclude equity based
remuneration. However, whilst the Company remains small and the full Board, including the non-executive
directors, are included in the operations of the Company more intimately than may be the case with larger
companies the non-executive directors are entitled to participate in equity based remuneration schemes.
All directors are entitled to have their indemnity insurance paid by the Company.
Profit participation plan
Performance incentives may be offered to executive directors and senior management of the Company
through the operation of a profit participation plan at the ultimate discretion of the Board.
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DIRECTORS’ REPORT
Details of remuneration
The remuneration for each Director and the senior Executive of the Company during the year and the previous year was as
follows:
2010
Short-term Employee Benefits
Post-
employment
Benefits
Other
Long-
term
Benefits
Termination
Benefits
Share
Based
Payments
Cash,
salary,
Directors
Fees
Cash
profit
share,
bonuses
Non-
cash
benefits
Mr S Loyalka
Executive Director
111,162
Mr A Jagatramka
Non Executive
Director
Mr M Pal
Non Executive
Director
Mr Andy Lau
Non Executive
Director
Mr W Harder1
Chief Geological
Officer
Mr S Ledger2
Company
Secretary
3,750
47,465
4,375
7,057
24,677
198,486
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Allowances
Super-
annuation
-
10,005
-
-
-
-
-
338
-
-
635
-
-
10,978
Cash,
salary,
Directors
Fees
Cash
profit
share,
bonuses
Non-
cash
benefits
Mr S Loyalka
Executive Director
37,500
Mr A Jagatramka
Non Executive
Director
Mr M Pal
Non Executive
Director
Mr W Harder
Chief Geological
Officer
Mr S Ledger
Company
Secretary
-
-
60,849
9,441
107,790
-
-
-
-
-
-
-
-
-
-
-
-
Allowances
Super-
annuation
-
3,375
-
-
-
-
5,476
-
8,851
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-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 M r Ha r de r re s ig ne d e f f e c t iv e 3 1 A u g us t 2 0 0 9 .
2 M r Le d ge r is a D i re c to r o f Le d g e r C o r po ra te P t y L t d. I n a dd i t io n to t he a bo v e re m un e r a t io n , Le d g e r C o r po ra te P t y L t d wa s
pa i d $ 6 ,5 6 0. 2 4 i n re la t io n to e xp e ns e r e i m b urs e me n t a n d o f f ic e s e r vic e s .
2009
Short-term Employee Benefits
Post-
employment
Benefits
Other
Long-
term
Benefits
Termination
Benefits
Share
Based
Payments
Total
121,167
4,088
-
-
-
47,465
-
-
-
-
4,375
7,692
24,677
209,464
Total
40,875
-
-
-
-
-
-
66,325
-
-
9,441
111,641
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DIRECTORS’ REPORT
Options issued as part of remuneration fo r the period ended 30 June 2010
There were 1,000,000 options issued to Mr Mahendra Pal and 500,000 options issued to Mr Steve Ledger as
part of remuneration for the year ending 30 June 2010.
Please refer to Note 19 for further information.
Options issued as part of remuneration for the period ended 30 June 2009
No options were granted as remuneration during the period ended 30 June 2009.
Shares Issued on Exercise of Compensation Options
No options granted as compensation in prior periods were exercised through the period or the previous
period.
Employment contracts of directors and senior executives
The employment conditions of the Executive Director, Sanjay Loyalka, are formalised in a contract of
employment.
The contract specifies for an amount of $200,000 including superannuation per annum to be paid to Mr
Loyalka and may be reduced at Mr Loyalka’s discretion . Accordingly, Mr.Loyalka had voluntarily drawn
reduced remuneration at rate of $75000 per annum in this financial year until February 2010. The agreement
commenced on 10 May 2008 and has a term of five years..
Mr.Mahendra Pal is an independent Non Executive Director of the company . He has additionally agreed to
support the Geological & Technical functions of the company effective March 2010 . Keeping in view the
additional services ,the Board has increased the remuneration payable to him effective March 2010 by an
additional $50,000 per annum to a total of $75,000 per annum.
Meetings of Directors
During the financial year, 9 formal meetings of Directors (including committees of directors) were held.
Attendances by each Director during the year were as follows:
Director
Sanjay Loyalka
Arun Jagatramka
Mahendra Pal
Andy Lau
Board Meetings
Meetings
attended
9
4
9
3
Meetings held
whilst in office
9
5
9
4
The full Board fulfils the role of remuneration, nomination and audit committees.
Indemnifying Officers or Auditor
The company maintains director and officer liability insurance.
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DIRECTORS’ REPORT
Options
At the date of this report, the unissued ordinary shares of Shree Minerals Limited under option are as follows:
Date of Expiry
30/06/2011
31/10/2012
31/10/2012(in escrow)
12/02/2013( in escrow)
Exercise Price
Number under Option
$0.20
$0.20
$0.20
$0.20
8,703,500
500,000
9,000,000
250,000
18,453,500
During the year ended 30 June 2010, 5000 shares were issued on the exercise of options.
No person entitled to exercise the option had or has any right by virtue of the option to participate in any
share issue of any other body corporate.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company
for all or any part of these proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit Services
The Board of Directors, in accordance with advice from the audit committee, is satisfied that the provision of
non-audit services during the year is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001. The Directors are satisfied that the services disclosed below did not
compromise the external auditor’s independence for the following reasons:
all non-audit services are reviewed and approved by the audit committee prior to commencement to
ensure they do not adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the
Accounting Professional and Ethical Standards Board.
The following fees for non-audit services were paid/payable to the external auditors during the year:
Taxation services
2010
$
-
-
2009
$
320
320
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2010 has been received and can be
found on page 17 of annual report.
Signed in accordance with a resolution of the Board of Directors.
Sanjay Loyalka
Chairman
Signed in Perth the 31st day of August 2010.
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
This statement outlines the main corporate governance practices in place during the financial year.
The Directors monitor the business affairs of the Company on behalf of Shareholders and have formally
adopted a Corporate Governance Charter, which is designed to encourage Directors and other Shree
personnel to focus their attention on accountability, risk management and ethical conduct. The Company has
adopted the following policies, protocols and corporate governance structures:
Structure of Board and Committees
Nominations and Remuneration Committee Charter
Audit and Risk Management Committee Charter
Board Members’ Code of Conduct
Conflict of Interest Protocol
Group Code of Conduct/Values
Risk Management Policy
Policy on the Trading of Company’s Shares
Release of Price Sensitive Information
Board Calendar (Strategic Governance Issues)
Board and Management Performance Enhancement Policy
The Corporate Governance Charter was prepared with regard to the Principles of Good Corporate Governance
and Best Practice Recommendations released by the ASX Corporate Governance Council in March 2003 (as
amended) so as to ensure that its practices are largely consistent with those Recommendations from time to
time. The Corporate Governance Charter will be reviewed and adjusted, as required, on an on-going basis
including in line with the ASX Corporate Governance Council amendments to the Recommendations.
The Company is committed to implementing high standards of corporate governance. In determining what
those high standards should involve the Company has turned to the ASX Corporate Governance Council’s
Principles of Good Corporate Governance and Best Practice Recommendations. The Company is pleased to
advise that the Company’s practices are largely consistent with those ASX guidelines.
Unless disclosed below, all the best practice recommendations of the ASX Corporate Governance Council have
been applied for the entire financial year ended 30 June 2010.
Board Composition
The skills, experience and expertise relevant to the position of each director who is in office at the date of the
annual report and their term of office are detailed in the director’s report.
The names of independent directors of the company are:
Mr Mahendra Pal
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CORPORATE GOVERNANCE STATEMENT
Independent Directors have the right to seek independent professional advice in the furtherance of their
duties as directors at the company’s expense.
The Board sets out below its “if not why not” report in relation to those matters of corporate governance
where the Company’s practices depart from the Recommendations
RECOMMENDATION
SHREE MINERALS LIMITED CURRENT PRACTICE
1.1
1.2
1.3
Companies should establish the functions reserved for
the board and those delegated to senior executives
and disclose those functions.
Companies should disclose the process for evaluating
the performance of senior executives.
Companies should provide the information indicated in
the Guide for reporting on Principle 1
Board
Satisfied.
at
Charter
www.shreeminerals.com in the Corporate Governance
Statement.
available
is
Satisfied. Board Performance Evaluation Policy is available
at www.shreeminerals.com in the Corporate Governance
Statement.
The
Board
at
Satisfied.
www.shreeminerals.com in the Corporate Governance
Statement.
available
Charter
is
Whilst the performance of management is appraised on
an ongoing basis. During the year no formal appraisal of
management was conducted.
2.1
A majority of the board should be
directors.
independent
Satisfied. The incumbent are independent directors.
2.2
The chair should be an independent director.
Not Satisfied. Due to the size of the company and its
is both an Executive
operations Mr Sanjay Loyalka
Director and Chairman.
2.3
The roles of chair and Chief Executive Officer should
not be exercised by the same individual.
Not Satisfied. Due to the size of the company and its
operations Mr Sanjay Loyalka is both Executive Director
and the Chairman.
2.4
The board should establish a nomination committee.
Not satisfied. The Board consider that given the current
size of the board (4), this function is efficiently achieved
with full board participation. Accordingly, the Board has
not established a nomination committee.
2.5
Companies should disclose the process for evaluating
the performance of the board, its committees and
Satisfied. Board Performance Evaluation Policy is available
at www.shreeminerals.com in the Corporate Governance
Page 13
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
SHREE MINERALS LIMITED CURRENT PRACTICE
individual directors.
2.6
Companies should provide the information indicated in
the guide to reporting on Principle 2
Statement.
Satisfied.
Whilst the performance of the Board is appraised on an
ongoing basis, during the year no formal appraisal was
conducted.
Satisfied. The Code of conduct is available at
www.shreeminerals.com in the Corporate Governance
Statement.
3.1
Companies should disclose a code of conduct and
disclose the code or a summary of the code as to:
The practices necessary to maintain confidence in the
company’s integrity
The practices necessary to take into account their legal
obligations and the reasonable expectations of their
stakeholders
The responsibility and accountability of individuals for
reporting and
investigating reports of unethical
practices.
3.2
Companies should establish a policy concerning trading
in company securities by directors, senior executives
and employees, and disclose the policy or a summary
of that policy.
The Trading Policy
Satisfied.
is available at
www.shreeminerals.com in the Corporate Governance
statement.
3.3
Companies should provide the information indicated in
the Guide to reporting on Principle 3
Satisfied
4.1
The board should establish an audit committee.
4.2
The board committee should be structured so that it:
Consists only of non-executive directors
Consists of a majority of independent directors
Is chaired by an independent chair, who is not chair of
the board
Has at least three members
4.3
The audit committee should have a formal charter.
Not satisfied. The Board consider that given the current
size of the board (4), this function is efficiently achieved
with full board participation. Accordingly, the Board has
not established an audit committee.
Not satisfied. The company has adopted a policy which
includes Executive Directors as audit
committee
members.
Audit Committee charter
Satisfied.
is available at
www.shreeminerals.com in the Corporate Governance
statement.
Page 14
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
SHREE MINERALS LIMITED CURRENT PRACTICE
4.4
5.1
5.2
6.1
6.2
7.1
7.2
7.3
Companies should provide the information indicated in
the Guide to reporting on Principle 4
Satisfied.
Companies should establish written policies designed
to ensure compliance with ASX Listing Rule disclosure
requirements and to ensure accountability at senior
executive level for that compliance and disclose those
policies or a summary of those policies.
Satisfied. Continuous disclosure policy is available at
www.shreeminerals.com in the Corporate Governance
statement.
Companies should provide the information indicated in
the Guide to reporting on Principle 5
Satisfied
Companies should design a communications policy for
promoting effective communication with shareholders
and encouraging
their participation at general
meetings and disclose their policy or a summary of
their policy.
Shareholders communication strategy
Satisfied.
is
available at www.shreeminerals.com in the Corporate
Governance statement.
Companies should provide the information indicated in
the Guide to reporting on Principle 6
Satisfied
Companies should establish policies for the oversight
and management of material business risks and
disclose a summary of those policies.
Satisfied. Risk management program is available at
www.shreeminerals.comin the Corporate Governance
statement.
Satisfied. The Board, including the Managing Director,
routinely consider risk management matters.
The board should require management to design and
implement the risk management and internal control
system to manage the company’s material business
risks and report to it on whether those risks are being
managed effectively. The board should disclose that
management has reported to it as to the effectiveness
of the company’s management of its material business
risks.
Satisfied.
declaration pursuant to the 2010 financial period.
The Board has received a section 295A
the chief executive officer
financial officer
the chief
the declaration provided
The board should disclose whether it has received
(or
assurance
from
(or
equivalent) and
equivalent)
in
that
accordance with section 295A of the corporations Act
is founded on a sound system of risk management and
internal control and that the system is operating
effectively
in relation to
financial reporting risks.
in all material respects
7.4
Companies should provide the information indicated in
the Guide to reporting on Principle 7
Satisfied
Page 15
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
SHREE MINERALS LIMITED CURRENT PRACTICE
8.1
The board should establish a remuneration committee. Not Satisfied. The Board consider that given the current
size of the board (4), this function is efficiently achieved
with full board participation. Accordingly, the Board has
not established a remuneration committee.
8.2
Companies should clearly distinguish the structure of
non-executive directors’ remuneration from that of
executive directors and senior executives.
The structure of directors’ remuneration is disclosed in
the remuneration report of the annual report.
8.3
Companies should provide the information indicated in
the Guide to reporting on Principle 8
committee
Remuneration
is available at
www.shreeminerals.comin the Corporate Governance
statement.
charter
Other Information
Further information relating to the company’s corporate governance practices and policies has been made
publicly available on the company’s web site at www.shreeminerals.com
Page 16
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S H R E E M I N E R A L S L T D
A U D I T O R S ’ I N D E P E N D E N C E C O N F I R M A T I O N
Page 17
For personal use only
S H R E E M I N E R A L S L T D
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDING 30 JUNE 2010
Revenue from continuing operations
Interest
Expenses from continuing operations
Finance charges
Employee and consulting fees
Regulatory costs
Occupancy and communication
Foreign exchange loss
Accounting and Legal Fees
Other Expenses
Loss before income tax
Income tax expense
Loss for the period
Other comprehensive income
Comprehensive Loss for the year
Note
30 June 2010
$
30 June 2009
$
76,015
19,926
(2,689)
(203,366)
(45,479)
(38,501)
(16,922)
(15,866)
(61,935)
(308,743)
-
(308,743)
-
(308,743)
4
(1,628)
(116,641)
(1,000)
(3,425)
-
(2,820)
(15,832)
(121,423)
-
(121,423)
-
(121,423)
Earnings per share for (loss) attributable to
ordinary equity holders of the company:
Basic (loss) cents per share
5
(0.004)
(0.21)
The accompanying notes form part of these financial statements.
Page 18
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S H R E E M I N E R A L S L T D
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
Note
30 June 2010
$
30 June 2009
$
6
7
9
8
10
10
10
3,113,238
105,939
3,219,177
4,556,445
1,036
4,557,481
235,997
9,086
245,083
3,381,029
-
3,381,029
7,776,658
3,626,112
(51,062)
(4,326)
(55,388)
(160,686)
(16,911)
(177,596)
-
-
(1,000,000)
(1,000,000)
(55,388)
(1,177,596)
7,721,270
2,448,516
11
12
8,163,345
(442,075)
2,581,848
(133,332)
7,721,270
2,448,516
Assets
Current Assets
Cash and cash equivalents
Receivables
Total Current Assets
Non-Current Assets
Exploration and evaluation
Plant and equipment
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Non-Current Liabilities
Payables
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Retained profits (losses)
Total Equity
The accompanying notes form part of these financial statements.
Page 19
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S H R E E M I N E R A L S L T D
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2010
Note
12
11
Issued
Capital
$
Retained
Losses
$
Total
$
3,500,400
(11,909)
3,488,491
-
-
(900,000)
(18,552)
(121,423)
(121,423)
-
-
-
-
(900,000)
(18,552)
2,581,848
(133,332)
2,448,516
BALANCE AT 1 July 2008
Total comprehensive income for
the period
Shares issued during the year
Reduction in share capital
Capital raising costs
SUB-TOTAL
Dividends paid or provided for
-
-
-
BALANCE AT 30 JUNE 2009
2,581,848
(133,332)
2,448,516
BALANCE AT 1 July 2009
Total comprehensive income for
the period
Shares issued during the year
12
11
Capital raising costs
SUB-TOTAL
2,581,848
(133,332)
2,448,516
-
(308,743)
(308,743)
5,964,500
(383,003)
-
-
5,964,500
(383,003)
8,163,345
(442,075)
7,721,270
Dividends paid or provided for
-
-
-
BALANCE AT 30 JUNE 2010
8,163,345
(442,075)
7,721,270
The accompanying notes form part of these financial statements.
Page 20
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S H R E E M I N E R A L S L T D
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2010
30 June 2010
$
30 June 2009
$
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Interest received
Finance and borrowing costs paid
Net cash inflow from operating activities
Cash flows from investing activities
Payment for plant and equipment
Payments for tenement acquisition
Net cash outflow from financing activities
Cash flows from financing activities
Proceeds from issues of shares and other equity securities
Payments for share issue costs
Repayment of borrowings
Net cash outflow from financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial
period
(1,031,437)
(1,031,437)
30,915
(2,689)
(1,003,211)
(1,045)
(550,000)
(551,045)
4,764,500
(333,003)
-
4,431,497
2,887,241
235,997
(333,608)
(333,608)
19,926
(1,628)
(315,310)
-
-
-
600,000
-
(49,675)
550,325
235,015
982
Cash and cash equivalents at the end of the financial
period
3,113,238
235,997
The accompanying notes form part of these financial statements.
Page 21
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This financial report includes the financial statements and notes of Shree Minerals Limited, a
Company domiciled and incorporated in Australia.
Statement of Compliance
The financial report is a general purpose financial report that has been prepared in accordance with
Interpretations, other authoritative
Australian Accounting Standards, Australian Accounting
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report includes the separate financial statements of the Company.
Accounting standards include Australian equivalents to International Financial Reporting Standards
(“AIFRS”). Compliance with AIFRS ensures that the financial statements and notes thereto comply
with International Financial Reporting Standards(“IFRS”).
The financial report is presented in Australian currency.
Basis of Preparation
The financial report has been prepared on an accruals basis and is based on historical costs,
modified, where applicable, by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities.
The significant accounting policies set out below have been applied in the preparation and
presentation of the financial report for the year ending 30 June 2010 and comparative information.
a.
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income
calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date.
Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to
(recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability
balances during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead
of the profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax assets also result where amounts have been fully expensed but future tax deductions
are available. No deferred income tax will be recognised from the initial recognition of an asset or
liability, excluding a business combination, where there is no effect on accounting or taxable profit
or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled, based on tax rates enacted or
substantively enacted at reporting date. Their measurement also reflects the manner in which
management expects to recover or settle the carrying amount of the related asset or liability.
Page 22
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to
the extent that it is probable that future taxable profit will be available against which the benefits of
the deferred tax asset can be utilised.
b. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable,
any accumulated depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of
the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected
net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net
cash flows have been discounted to their present values in determining recoverable amounts.
The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour,
borrowing costs and an appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.
Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation
reserve in equity. Decreases that offset previous increases of the same asset are charged against fair value
reserves directly in equity; all other decreases are charged to the income statement. Each year the difference
between depreciation based on the revalued carrying amount of the asset charged to the income statement
and depreciation based on the asset’s original cost is transferred from the revaluation reserve to retained
earnings.
Depreciation
The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding
freehold land, is depreciated on a straight-line basis over their useful lives to the consolidated group
commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the
shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Office equipment
Depreciation Rate
33%
20%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Page 23
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the income statement. When revalued assets are sold, amounts included in the
revaluation reserve relating to that asset are transferred to retained earnings.
c. Exploration, evaluation and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable
area of interest. These costs are only carried forward to the extent that they are expected to be recouped
through successful development on the area or where activities in the area have not yet reached a stage which
permits reasonable assessment of the existence of economically recoverable reserve.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which
the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest area amortised over the
life of the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
d. Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset,
but not the legal ownership that is transferred to entities in the economic entity, are classified as finance
leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair
value of the leased property or the present value of the minimum lease payments, including any guaranteed
residual values. Lease payments are allocated between the reduction of the lease liability and the lease
interest expense for the period.
Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the
lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over
the life of the lease term.
e. Financial Instruments
Recognition and Initial Measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity
becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial
assets that are delivered within timeframes established by marketplace convention.
Financial instruments are initially measured at fair value plus transactions costs where the instrument is not
classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair
value through profit or loss are expensed to profit or loss immediately. Financial instruments are classified and
measured as set out below.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is
transferred to another party whereby the entity is no longer has any significant continuing involvement in the
risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations
Page 24
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
are either discharged, cancelled or expire. The difference between the carrying value of the financial liability
extinguished or transferred to another party and the fair value of consideration paid, including the transfer of
non-cash assets or liabilities assumed, is recognised in profit or loss.
Classification and Subsequent Measurement
(i) Financial assets at fair value through profit or loss
Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose
of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to
avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is
managed by key management personnel on a fair value basis in accordance with a documented risk
management or investment strategy. Realised and unrealised gains and losses arising from changes in fair
value are included in profit or loss in the period in which they arise.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are subsequently measured at amortised cost using the effective interest rate
method.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or
determinable payments, and it is the group’s intention to hold these investments to maturity. They are
subsequently measured at amortised cost using the effective interest rate method.
(iv) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that
are not classified in any of the other categories. They comprise investments in the equity of other entities
where there is neither a fixed maturity nor fixed or determinable payments.
(v) Financial Liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised
cost using the effective interest rate method.
Derivative instruments
Derivative instruments are measured at fair value. Gains and losses arising from changes in fair value are taken
to the income statement unless they are designated as hedges.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are
applied to determine the fair value for all unlisted securities, including recent arm’s length transactions,
reference to similar instruments and option pricing models.
Impairment
At each reporting date, the group assess whether there is objective evidence that a financial instrument has
been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the
Page 25
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the
income statement.
Impairment of Assets
f.
At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the
recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is
compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is
expensed to the income statement.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Interests in Joint Ventures
g.
The Company’s share of the assets, liabilities, revenue and expenses of joint venture operations are included in
the appropriate items of the financial statements.
h. Employee Benefits
Provision is made for the company’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have been
measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later
than one year have been measured at the present value of the estimated future cash outflows to be made for
those benefits. Those cash flows are discounted using market yields on national government bonds with terms
to maturity that match the expected timing of cash flows.
Equity-settled compensation
The group operates equity-settled share-based payment employee share and option schemes. The fair value of
the equity to which employees become entitled is measured at grant date and recognised as an expense over
the vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained
as the market bid price. The fair value of options is ascertained using a Black–Scholes pricing model which
incorporates all market vesting conditions. The number of shares and options expected to vest is reviewed and
adjusted at each reporting date such that the amount recognised for services received as consideration for the
equity instruments granted shall be based on the number of equity instruments that eventually vest.
i. Provisions
Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for
which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Page 26
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
j. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of 12 months or less, and bank overdrafts. Bank overdrafts are shown
within short-term borrowings in current liabilities on the balance sheet
k. Revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
All revenue is stated net of the amount of goods and services tax (GST).
l. Goods and Services Tax (“GST”)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office (“ATO”). In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and
payables in the statement of financial position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the
statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified
as operating cash flows.
m. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
n. Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the group.
Key Judgements – Deferred exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current.
These costs are carried forward in respect of an area that has not at balance sheet date reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves, refer to the accounting
policy stated in note 1(c).
Key Judgements Share based payment transactions
The Company measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by an internal
valuation using a Black-Scholes option pricing model, using the assumptions detailed in note 20.
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
o. Operating segments
In February 2007 the Australian Accounting Standards Board issued AASB 8 which replaced AASB 114:
Segment Reporting. As a result, some of the required operating segment disclosures have changed with the
addition of a possible impact on the impairment testing of goodwill allocated to the cash generating units
(CGUs) of the entity. Below is an overview of the key changes and the impact on the Group’s financial
statements.
Measurement of impact
Identification and measurement of segments – AASB 8 requires the ‘management approach’ to the
identification measurement and disclosure of operating segments. The ‘management approach’ requires that
operating segments be identified on the basis of internal reports that are regularly reviewed by the entity’s
chief operating decision maker, for the purpose of allocating resources and assessing performance. This could
also include the identification of operating segments which sell primarily or exclusively to other internal
operating segments. Under AASB 114, segments were identified by business and geographical areas, and only
segments deriving revenue from external sources were considered.
The adoption of the ‘management approach’ to segment reporting has resulted in the identification of
reportable segments largely consistent with the prior year.
Under AASB 8, operating segments are determined based on management reports using the ‘management
approach’, whereas under AASB 114 financial results of such segments were recognised and measured in
accordance with Australian Accounting Standards. This has resulted in changes to the presentation of segment
results, with inter-segment sales and expenses such as depreciation and impairment now being reporting for
each segment rather than in aggregate for total group operations, as this is how they are reviewed by the chief
operating decision maker. The company has only one operating segment which is presented in the
Consolidated Statement of Comprehensive Income and Consolidated Statement of Financial Position.
p. AASB 101 Presentation of Financial Statements
In September 2007 the Australian Accounting Standards Board revised AASB 101 and as a result, there have
been changes to the presentation and disclosure of certain information within the financial statements. Below is
an overview of the key changes and the impact on the Company’s financial statements.
Disclosure impact
Terminology changes – The revised version of AASB 101 contains a number of terminology changes, including
the amendment of the names of the primary financial statements.
Reporting changes in equity - The revised AASB 101 requires all changes in equity arising from transactions
with owners, in their capacity as owners, to be presented separately from non-owner changes in equity. Owner
changes in equity are to be presented in the statement of changes in equity, with non-owner changes in equity
presented in the statement of comprehensive income. The previous version of AASB 101 required only that
owner changes in equity and other comprehensive income be presented in the statement of changes in equity.
Statement of comprehensive income – The revised AASB 101 requires all income and expenses to be presented
in either one statement, the statement of comprehensive income, or two statements, a separate income
Page 28
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
statement and a statement of comprehensive income. The previous version of AASB 101 required only the
presentation of a single income statement.
The Company’s financial statements now contain a statement of comprehensive income.
Other comprehensive income – The revised version of AASB 101 introduces the concept of ‘other
comprehensive income’ which comprises of income and expenses that are not recognised in profit or loss as
required by other Australian Accounting Standards. Items of other comprehensive income are to be disclosed in
the statement of comprehensive income. Entities are required to disclose the income tax relating to each
component of other comprehensive income. The previous version of AASB 101 did not contain an equivalent
concept.
NOTE 2: KEY MANAGEMENT PERSONNEL COMPENSATION
Names and positions held of economic and parent entity key management personnel in office at any time
during the financial year are:
Sanjay Loyalka
Mahendra Pal
Arun Kumar Jagatramka
Andy Lau
Steve Ledger
Chairman
Director
Director
Director
Company Secretary
Key management personnel remuneration has been included in the Remuneration Report section of the
Directors Report.
Number of Shares Held by Key Management Personnel
30 June 2010
Key Management
Person
Mr Sanjay
Loyalka1
Mr Mahendra Pal
Mr Arun
Jagatramka2
Mr Andy Lau
Mr Steve Ledger3
Balance
1.7.2009
Received as
Compensation
Options
Exercised
Net Change
Other
Balance on
Resignation
Balance
30.6.2010
32,500,000
-
10,000,000
-
-
42,500,000
-
-
-
-
-
-
-
(7,185,000)
-
25,315,000
-
-
-
-
-
-
5,000,000
-
20,000
(2,165,000)
-
-
-
-
-
-
15,000,000
-
20,000
40,335,000
1. D u ri n g t he ye a r M r Lo ya lk a s o l d 8 , 00 0 , 0 0 0 s ha re s to C h i na A l li a n c e G ro u p. M r Lo ya lk a p urc ha s e d 6 5, 0 0 0 s ha re s o n ma r ke t.
A re la te d e n ti t y o f M r L o ya l ka , I A C G P t y L t d a ls o a c q u i re d 7 5 0, 0 0 0 via a f a r m i n a g re e me n t.
2. M r J a ga tr a m ka is a d i re c to r o f G uj u ra t NR E R e s o u rc e s N L. T h e c o m pa n y a c q u ir e d 5 , 0 00 , 0 0 0 s h a re s p urs ua t to a t e n e me n t
a c q u is i t io n a g re e me n t.
3. M r Le d ge r is a d ir e c to r o f Le d ge r C o r po ra te P t y L t d. T h e c o m pa n y a n d i ts a s s o c i a t e d e nt i t ie s a c q ui re d 2 0 ,0 0 0 s ha re s
d ur i n g t he ye a r.
Page 29
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
30 June 2009
Key Management
Person
Mr Sanjay
Loyalka
Mr Mahendra Pal
Mr Arun
Jagatramka
Mr Andy Lau
Mr Steve Ledger
Balance
1.7.2008
Received as
Compensation
Options
Exercised
Net Change
Other
Balance on
Resignation
Balance
30.6.2009
32,500,000
-
10,000,000
-
-
42,500,000
-
-
-
-
-
-
-
-
-
32,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000,000
-
-
42,500,000
NUMBER OF OPTIONS HELD BY KEY MANAGEMENT PERSONNEL
30 June 2010
Key Management
Person
Granted as
compensation
Balance
30.6.2009
Options
Exercised
Net
Change
Other
Balance
30.6.2010
Total
Vested
30.6.2010
Total
Exercisable
30.6.2010
Total
Unexercisable
30.6.2010
Mr Sanjay
Loyalka
Mr Mahendra
Pal1
Mr Arun
Jagatramka
Mr Andy Lau
Mr Steve Ledger2
-
-
-
-
-
-
-
1,000,000
-
-
500,000
1,500,000
-
-
-
-
-
-
-
-
- 1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
-
-
10,000
510,000
10,000
10,000
500,000
10,000 1,510,000
10,000
10,000
1,500,000
1. M r P a l w a s gr a nt e d 1 ,0 0 0 , 00 0 o p tio ns p urs ua n t to t h e 2 0 09 a n n ua l ge ne ra l me e t i n g.
2. M r Le dg e r w a s gra n te d 5 0 0 , 00 0 o p tio ns p u rs ua n t to t he 2 00 9 a n n ua l g e ne r a l m e e ti n g. M r L e dg e r is a d ire c to r o f Le d ge r
C o r po r a t e P t y L t d. T h e c o m pa ny a n d i ts a s s o c ia t e d e n ti t ie s a c q ui re d 1 0 , 00 0 o pt io ns d u ri n g t he ye a r.
Please refer to Note 19 for further information regarding the fair value of share options and assumptions.
30 June 2009
There were no options on issue at 30 June 2009
NOTE 3: AUDITORS’ REMUNERATION
Remuneration paid or payable of the auditor for:
– Auditing or reviewing the financial report
– Taxation services and corporate services
30 June 2010
30 June 2009
$
7,666
-
7,666
$
2,700
320
3,020
Page 30
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
NOTE 4: INCOME TAX
a. Income tax expense
Current tax
Deferred tax
Deferred income tax expense included in income tax expense
comprises:
(a) (Increase) in deferred tax assets
(b) Increase in deferred tax liabilities
30 June 2010
30 June 2009
$
-
-
-
$
-
-
-
(352,625)
352,625
-
(88,850)
88,850
-
30 June 2010
30 June 2009
$
$
b. Reconciliation of income tax expense to prima facie tax
payable
The prima facie tax payable on profit from ordinary activities
before income tax is reconciled to the income tax expense as
follows:
Prima facie tax on operating profit at 30%
(92,623)
(36,427)
Add / (Less)
Tax effect of:
Deferred tax asset not brought to account
Income tax attributable to operating loss
92,623
-
36,427
-
The applicable weighted average effective tax rates are as
follows:
Balance of franking account at year end
c. Deferred tax assets
Tax Losses
Provisions
Other
Set-off deferred tax liabilities
Net deferred tax assets
Page 31
Nil
Nil
-
1,298
351,327
(352,625)
-
Nil
Nil
-
2,250
86,330
(88,580)
-
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
d. Deferred tax liabilities
Exploration expenditure
Set-off deferred tax assets
Net deferred tax liabilities
e. Tax losses
352,625
(352,625)
-
88,580
(88,580)
-
Unused tax losses for which no deferred tax asset has been
recognised
1,983,741
416,097
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been
brought to account at 30 June 2010 because the directors do not believe it is appropriate to regard realisation of
the deferred tax assets as probable at this point in time. These benefits will only be obtained if:
i. the company derives future assessable income of a nature and of an amount sufficient to enable the benefit
from the deductions for the loss and exploration expenditure to be realised;
ii. the company continues to comply with conditions for deductibility imposed by law; and
iii. no changes in tax legislation adversely affect the company in realising the benefit from the deductions for
the loss and exploration expenditure.
NOTE 5: EARNINGS PER SHARE
a. Earnings used to calculate basic EPS
b. Weighted average number of ordinary shares outstanding
during the year used in calculating basic EPS
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and in hand
NOTE 7: TRADE AND OTHER RECEIVABLES
Interest receivable
Security deposits
GST and ABN withholding tax receivables
Page 32
30 June 2010
30 June 2009
$
(308,743)
Number of
Shares
69,824,568
$
(121,423)
Number of
Shares
55,802,740
30 June 2010
30 June 2009
$
3,113,238
$
235,997
30 June 2010
30 June 2009
$
45,101
19,000
41,838
105,939
$
-
-
9,086
9,086
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
NOTE 8: PROPERTY, PLANT & EQUIPMENT
Plant And Equipment
Office Equipment – at cost
Accumulated depreciation
30 June 2010
30 June 2009
$
1,045
(9)
1,036
$
-
-
-
a. Movements in Carrying Amounts
Movement in the carrying amounts for each class of property,
plant and equipment between the beginning and the end of
the current financial year
Opening balance at 1 July 2009
Additions
Depreciation expense
Balance at 30 June 2010
Plant and
equipment
Office
Equipment
$
-
-
-
-
$
-
1,045
(9)
1,036
Total
$
-
1,045
(9)
1,036
NOTE 9: EXPLORATION EXPENDITURE
Exploration and evaluation phase expenditure capitalised
30 June 2010
30 June 2009
$
4,556,445
$
3,381,029
The value of Company interest in exploration expenditure is dependent upon the:
the continuance of the economic entity rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of
interest, or alternatively, by their sale.
The exploration properties may be subjected to claim(s) under native title, or contain sacred sites, or sites of
significance to Aboriginal people. As a result, exploration properties or areas within the tenements may be subject
to exploration restrictions, mining restrictions and/or claims for compensation. At this time, it is not possible to
quantify whether such claims exist, or the quantum of such claims.
Page 33
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
NOTE 10: TRADE AND OTHER PAYABLES
Current
Trade creditors
Other payables and accruals
Non Current
Other Payable
30 June 2010
30 June 2009
$
51,062
4,326
55,388
-
-
$
160,686
16,911
177,597
1,000,000
1,000,000
During the year, the terms of the tenement acquisition agreement with Gujurat NRE Resources NL were
varied. The variation provided for the outstanding loan of $1,000,000 to be replaced with the issue of
5,000,000 shares upon successful listing. Equity has been issued to Gujurat NRE Resources NL in accordance
with this variation.
NOTE 11: CONTRIBUTED EQUITY
87,422,500 (2009: 56,000,000) Fully paid ordinary shares
8,163,345
2,581,848
The Company has issued capital amounting to 87,422,500
(2009:56,000,000) with no par value
30 June 2010
30 June 2009
$
$
(a) Ordinary Shares
At the beginning of the reporting period
Shares issued during the period
–
–
–
–
–
13 July 2008
6 November 2009
16 February 2010
18 February 2010
2 March 2010
At reporting date
Number of
Shares
Number of
Shares
56,000,000
50,000,000
-
6,000,000
8,000,000
17,417,500
6,000,000
5,000
87,422,500
-
-
-
56,000,000
Page 34
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
(b) Capital risk management
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so
that they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company’s activities, being mineral exploration, the Company does not have ready access
to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Company’s
capital risk management is the current working capital position against the requirements of the Company to meet
exploration programmes and corporate overheads. The Company’s strategy is to ensure appropriate liquidity is
maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as
required. The working capital position of the Company at 30 June 2010 and 30 June 2009 are as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Working capital position
NOTE 12: RETAINED LOSSES
a. Retained Losses
At the beginning of the reporting period
Comprehensive loss
At reporting date
b. Option Reserve
3,113,238
105,939
(55,388)
3,163,789
235,997
9,086
(177,596)
67,487
30 June 2010
30 June 2009
$
$
133,332
308,743
442,075
11,909
121,423
133,332
The option reserve records items recognised as expenses on valuation of share based payments including employee
options. The options on issue have been valued at nil. Please refer note 19 for more information.
NOTE 13: COMMITMENTS
30 June 2010
30 June 2009
a. The Company has tenements rental and expenditure
commitments of:
Payable:
– not later than 12 months
– between 12 months and 5 years
– greater than 5 years
$
253,584
-
-
$
-
-
-
Page 35
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
NOTE 14: CONTINGENT LIABILITIES AND CONTIGENT ASSETS
There are no contingent liabilities or assets.
NOTE 15: CASH FLOW INFORMATION
(a) Reconciliation of Cash
Cash at the end of the financial year as shown in the statement
of cash flows is reconciled to the related items in the statement
of financial position as follows:
30 June 2010
30 June 2009
$
$
Cash
3,113,238
235,997
(b) Reconciliation of Cash Flow from Operations with
Operating Profit after Income Tax
Operating loss after income tax
Non-cash flows in profit from ordinary activities
Depreciation and amortisation
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other assets
Increase/(decrease) in trade and other payables
Net Cash Flow from/(used in) Operating Activities
NOTE 16: RELATED PARTY TRANSACTIONS
Key Management Personnel
(308,743)
(121,423)
9
-
(96,852)
(625,417)
27,791
(1,003,212)
(8,457)
(339,474)
154,044
(315,310)
Disclosures relating to key management personnel are set out in Note 2 to the financial statements, and in the
Remuneration Report contained within the Directors Report.
NOTE 17: FINANCIAL INSTRUMENTS
a. Financial Risk Management
The Company’s financial instruments consist mainly of deposits with banks and accounts receivable and
payable.
The main purpose of non-derivative financial instruments is to raise finance for the Company’s operations.
Derivatives are not currently used by the Company for hedging purposes. The Company does not speculate in
the trading of derivative instruments.
i. Treasury Risk Management
The senior executives of the Company meet on a regular basis to analyse currency and interest rate exposure
and to evaluate treasury management strategies in the context of the most recent economic conditions and
forecasts.
Page 36
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
ii. Financial Risks
The main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity risk
and credit risk.
Interest rate risk
The Company does not have any debt that may be affected by interest rate risk.
Sensitivity analysis
At 30 June 2010, if interest rates had changed by -/+ 75 basis points from the weighted average rate for the
year with all other variables held constant, post-tax loss for the Company would have been $23,349
lower/higher (2009 - $1,770 lower/higher) as a result of lower/higher interest income from cash and cash
equivalents.
Liquidity risk
The Company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised
borrowing facilities are maintained.
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as
disclosed in the balance sheet and notes to the financial statements.
The Company does not have any material credit risk exposure to any single receivable or group of receivables
under financial instruments entered into by the economic entity.
b. Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
for disclosure purposes. All financial assets and financial liabilities of the Company and the parent entity at the
balance date are recorded at amounts approximating their carrying amount.
The fair value of financial instruments traded in active markets is based on quoted market prices at the
reporting date. The quoted market price used for financial assets held by the Company is the current bid price.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate
their fair values due to their short-term nature.
b. Interest Rate Risk
The Company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate
as a result of changes in market interest rates and the effective weighted average interest rate for each class of
financial assets and financial liabilities comprises:
Page 37
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
Floating Interest
Rate
Fixed Interest Rate
1 Year or Less
1 to 5 Years
Non Interest
Bearing
Total
Weight Effective
Interest Rate
2010
$
2009
$
2010
$
2009
$
2010
$
2009
$
2010
$
2009
$
2010
$
2009
$
2010
%
2009
%
Cash
Trade and other
receivables
61,371
191,939
3,051,867
44,058
-
-
-
-
Total Financial Assets
61,371
191,939
3,051,867
44,058
Financial Liabilities
Trade and other payables
Total Financial Liabilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,113,238
235,997
105,939
9,086
105,939
9,086
105,939
9,086
3,219,177
245,083
(55,388)
(177,596)
(55,388)
(177,596)
N/A
N/A
(55,388)
(177,596)
(55,388)
(177,596)
NOTE 18: OPERATING SEGMENTS
The consolidated entity operates predominately in one segment involved in the mineral exploration.
Geographically, the consolidated entity is domiciled and operates in one segment being Australia. In accordance
with AASB 8 Operating Segments, a management approach to reporting has been applied. The information
presented in the Statement of Comprehensive Income and the Statement of Financial Position reflects the sole
operating segment.
NOTE 19: SHARE-BASED PAYMENTS
During the year 18,453,500 (2009:nil) options were issued and 8,703,500 of these were listed on the Australian
Stock Exchange.
Options granted carry no dividend or voting rights. When exercisable, each option is convertible into one
ordinary share of the Company with full dividend and voting rights.
To determine the fair value of share based payments during the year, the company used valuation techniques
including Black Scholes option pricing model. The value attributed to these options under this method was $60.
Furthermore, as the listed options of similar term and exercise conditions are currently valued on the Australian
Stock Exchange at $nil, the Company believes no expense is required in the current period.
Fair Value of Share Options and Assumptions
The fair value of services received in return for share options granted to Directors is measured by reference to
the fair value of options granted. The estimate of fair value of the services is measured based on the Black-
Scholes option valuation methodology. The life of the option and early exercise option are built into the option
model.
The assumptions used for the options valuation are as follows:
Exercise Price $0.20
Expected Life 3 years
Share price at time of issue $0.10
Expected volatility 75.00%
Dividend Yield 0%
Risk free interest rate 4.5%
Page 38
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
a. Expenses arising from share-based payment transactions
There were $nil (2009:$nil) expenses arising from share-based payment transactions recognised during the
period.
NOTE 20: CHANGE IN ACCOUNTING POLICY
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June
2010 reporting periods. The group’s and the parent entity’s assessment of the impact of these new standards
and interpretations are set out below.
AASB 2009-8 Amendments to Australian Accounting Standards – Group Cash-Settled Share-based Payment
Transactions [AASB 2] (effective from 1 January 2010)
The amendments made by the AASB to AASB 2 confirm that an entity receiving goods or services in a group
share-based payment arrangement must recognise an expense for those goods or services regardless of which
entity in the group settles the transaction or whether the transaction is settled in shares or cash. They also
clarify how the group share-based payment arrangement should be measured, that is, whether it is measured
as an equity- or cash-settled transaction. The company will apply these amendments retrospectively for the
financial reporting period commencing 1 July 2010. There will be no impact on the company’s financial
statements.
AASB 2009-10 Amendments to Australian Accounting Standards – Classification of Rights Issues [AASB13 2]
(effective from 1 February 2010)
In October 2009 the AASB issued an amendment to AASB 132 Financial Instruments: Presentation which
addresses the accounting for rights issues that are denominated in a currency other than the functional
currency of the user. Provided certain conditions are met, such rights issues are now classified as equity
regardless of the currency in which the services price is denominated. Previously, these issues had to be
accounted for as derivative liabilities. The amendment must be applied retrospectively in accordance with
AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. The company will apply the
amended standard from 1 July 2010. As the company has not made any such rights issues, the amendment will
not have any effect on the company’s financial statements.
AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards arising
from AASB 9 (effective from 1 January 2013)
AASB 9 Financial Instruments addresses the classification and measurement of financial assets and is likely to
affect the company’s accounting for its financial assets. The standard is not applicable until 1 January 2013 but
is available for early adoption. The company is yet to assess its full impact. The company has not yet decided
when to adopt AASB 9.
AASB Interpretation 19 Extinguishing financial liabilities with equity instruments and AASB 2009-13
Amendments to Australian Accounting Standards arising from Interpretation 19 (effective from 1 July 2010)
AASB Interpretation 19 clarifies the accounting when an entity negotiates the terms of its debt with the result
that the liability is extinguished by the debtor issuing its own equity instruments to the creditor (debt for
equity swap). It requires a gain or loss to be recognised in profit or loss which is measured as the difference
between the carrying amount of the financial liability and the fair value of the equity instruments issued. The
company will apply the interpretation from 1 July 2010. It is not expected to have any impact on the
company’s financial statements since it is only retrospectively applied from the beginning of the earliest period
presented (1 July 2009) and the company has not entered into any debt for equity swaps since that date.
AASB 2010-13 Amendments to Australian Accounting Standards arising from the Annual Improvements
Project and AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual
Improvements Project (effective for annual periods beginning on or after 1 July 2010/ 1 January 2011)
Page 39
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2010
In June 2010, the AASB made a number of amendments to Australian Accounting Standards as a result of the
IASB’s annual improvements project. The company will apply the amendments from 1 July 2010. The
company is yet to assess its full impact.
NOTE 21: COMPANY DETAILS
The registered office and principal place of business of the Company is:
Suite 1a
46 Ord St
West Perth WA 6005
Ph:
Fax:
08 9322 4944
08 9322 4946
Page 40
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S H R E E M I N E R A L S L T D
DIRECTORS’ DECLARATION
1. In the opinion of the directors of Shree Minerals Limited (‘the Company’):
(a) the financial statements and notes as set out on pages 18 to 40, are in accordance with the Corporations
Act 2001, including:
(i) giving a true and fair view of the financial position of the Company as at 30 June 2010 and of
its performance, as represented by the results of their operations and their cash flows, for
the financial year ended on that date; and
(ii) complying with Australian Accounting Standards, the Corporations Regulations 2001, and
other mandatory professional reporting requirements; and
(b) the audited remuneration disclosures included in the Directors’ report For the year ended 30 June 2010,
comply with section 300A of the Corporations Act 2001.
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
(d) the Company has included in the notes to the financial statements an explicit and unreserved statement
of compliance with International Financial Reporting Standards.
2. There are reasonable grounds to believe that the Company will be able to meet any obligations or liabilities
when they become due and payable.
3. The remuneration disclosures in the audited Remuneration Report on pages 6 to 11 in the Directors’ report
for the year ended 30 June 2010 complies with Section 300A of the Corporations Act 2001.
4. The directors have been given the declarations required by Section 295A of the Corporations Act from the
chief executive officer and chief financial officer for the financial year ended 30 June 2010.
Dated at 46 Ord St West Perth this 31st day of August 2010.
Signed in accordance with a resolution of the directors:
_______________________
Sanjay Loyalka
Director
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S H R E E M I N E R A L S L T D
INDEPENDENT AUDITORS’ REPORT
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S H R E E M I N E R A L S L T D
INDEPENDENT AUDITORS’ REPORT
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S H R E E M I N E R A L S L T D
SHAREHOLDER INFORMATION
ADDITIONAL INFORMATION
The following additional information not shown elsewhere in the report is required by the Australian Securities
Exchange Ltd in respect of listed public companies only. This information is current as at 20 August 2010.
BUSINESS OBJECTIVES
On 16 February 2010, the company was admitted to the official list of the Australian Securities Exchange.
Since that time through to the date of this report, the company confirms that it has used cash and assets
readily convertible to cash that it had at the time of admission in a way consistent with its business objectives.
SUBSTANTIAL SHAREHOLDERS
On the 25 February 2010, the company received substantial shareholder notices from;
– Mr Sanjay Loyalka as trustee for the Loyalka Family Trust (24,500,000 ordinary shares)
– Gujurat NRE Resources NL (15,000,000 ordinary shares)
– Ullapool Investments Pty Ltd (6,000,000 ordinary shares)
ISSUED SECURITIES
Refer note 11 of the financial statements.
VOTING RIGHTS
The voting rights attached to the Fully Paid Ordinary shares of the Company are:
1. At a meeting of members or classes of members each member entitled to vote may vote in person or by
proxy or by attorney; and
2. On a show of hands every person present who is a member has one vote, and on a poll every person
present in person or by proxy or attorney has one vote for each ordinary share held.
There are no voting rights attached to any Options on issue.
DISTRIBUTION SCHEDULE – OPTIONS AS AT 20 AUGUST 2010
Holdings Ranges
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 99,999,999,999
Holders
0
275
46
167
14
502
Total Units
0
1,375,000
370,750
4,473,000
12,235,000
18,453,750
%
0.000
7.451
2.009
24.239
66.301
100.000
DISTRIBUTION SCHEDULE – SHAREHOLDINGS AS AT 20 AUGUST 2010
Holdings Ranges
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 99,999,999,999
Holders
0
4
248
186
37
475
Total Units
0
17,945
2,468,414
7,204,249
77,731,892
87,422,500
%
0.000
0.021
2.824
8.241
88.915
100.000
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S H R E E M I N E R A L S L T D
SHAREHOLDER INFORMATION
UNMARKETABLE PARCELS
There is one unmarketable parcel as at 20th August 2010.
20 LARGEST SHAREHOLDERS AS AT 20 AUGUST 2010
Holder Name
Balance
%
MR SANJAY KUMAR LOYALKA
CHINA ALLIANCE INTERNATIONAL HOLDINGS GROUP LIMITED
GUJARAT NRE RESOURCES NL
ULLAPOOL INVESTMENTS PTY LTD
ROSECLIFF HOLDINGS PTY LTD
ME GAWILD ENTERPRISES PTY LTD
MEGAWILD ENTERPRISES PTY LTD
DR DEEPAK NARAN
IACG PTY LTD
CITICORP NOMINEES PTY LIMITED
MS EMMA HALL
BRIAN EDWARD VON BERGHEIM PTY LTD
MR PANKAJ OSWAL
TANDON SUPERANNUATION SERVICES PTY LTD
DAVSA FORTY-NINTH PTY LTD
MR ASOK KUMAR & MRS RENU KUMAR
VECTOR NOMINEES PTY LIMITED
MR MATTHEW BOWLES
MR PETER MACGILL
MR TARUN GANDHI
20 LARGEST OPTION HOLDERS AS AT 20 AUGUST 2010
Holder Name
CHINA ALLIANCE INTERNATIONAL HOLDINGS GROUP LIMITED
MAHENDRA PAL
ROSECLIFF HOLDINGS PTY LTD
MEGAWILD ENTERPRISES PTY LTD
MR STEVE LEDGER
CITICORP NOMINEES PTY LIMITED
MR PANKAJ OSWAL
ZURICH SECURITIES PTY LTD
TANDON SUPERANNUATION SERVICES PTY LTD
VECTOR NOMINEES PTY LIMITED
MR TARUN GANDHI
INFOTEL BUSINESS SOLUTIONS LIMITED
DEPAK DOLATHRAI NARAN
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR JOHN WILLIAM ROTHE
MR SCOTT ROBERT FAIRFAX SEVILLE
MICHAEL LEE ANGHIE & SANDY MICHELLE ANGHIE
MR DAVID JOHN BRYDEN
CHALLAND PTY LIMITED
LACEGLEN HOLDINGS PTY LTD
24,500,000
16,000,000
15,000,000
6,000,000
3,750,000
2,500,000
1,250,000
1,000,000
750,000
500,000
500,000
500,000
500,000
350,000
290,892
276,000
250,000
250,000
250,000
250,000
28.025
18.302
17.158
6.863
4.290
2.860
1.430
1.144
0.858
0.572
0.572
0.572
0.572
0.400
0.333
0.316
0.286
0.286
0.286
0.286
74,666,892
85.411
Balance
%
8,000,000
43.352
1,000,000
625,000
625,000
500,000
250,000
250,000
250,000
125,000
125,000
125,000
125,000
125,000
110,000
100,000
100,000
100,000
100,000
62,500
62,500
5.419
3.387
3.387
2.709
1.355
1.355
1.355
0.677
0.677
0.677
0.677
0.677
0.596
0.542
0.542
0.542
0.542
0.339
0.339
12,760,000
69.146
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