S H R E E M I N E R A L S L I M I T E D
ACN 130 618 683
2013 ANNUAL REPORT
For personal use only
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 Profit or Loss & other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
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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
Amu Shah
COMPANY SECRETARY
Sanjay Loyalka
REGISTERED OFFICE
Unit 4
The Pines Business Centre
86 -88 Forrest Street
Cottesloe
WA 6011
Ph:
Fax:
info@shreeminerals.com
www.shreeminerals.com
(08) 61612068
(08) 93855194
SOLICITORS
Steinepreis Paganin
Level 4
16 Milligan St
Perth WA 6000
AUDITORS
Grant Thornton Audit Pty Ltd
Lv 1, 10 Kings Park Road
West Perth WA 6005
BANKERS
Commonwealth Bank of Australia
St Georges Tce
Perth WA 6000
SHARE REGISTRY
Boardroom Pty Limited
Level 7, 207 Kent Street
Sydney, NSW 2000
Ph: +61 (02) 9290 9600
Fax: +61 (02) 9279 0664
.
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
The Directors present this report together with the financial report of Shree Minerals Ltd (‘the Company’) for
the year ended 30th June 2013 and the auditors' report thereon.
DIRECTORS
The names of the Directors in office during the financial year and until the date of this report are as follows. Directors
were in office for this entire period unless otherwise stated.
Mr Sanjay Loyalka
Mr Mahendra Pal
Mr Arun Jagatramka
Mr Andy Lau
Mr Amu Shah
COMPANY SECRETARY
Mr Sanjay Loyalka
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 $622,762 (2012: $250,900).
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 5 Exploration Licenses. The Company was formed in April 2008 and listed on the Australian
Securities Exchange in February 2010. Since inception, the Company has actively explored for iron at its Nelson
Bay River tenement and has been examining the remaining tenement lands for their mineral potential.
The Company’s activities over the past year have included:
•
•
•
•
Exploration of tenement lands;
Seeking approvals for the development of Company’s Nelson Bay River Iron Project in North West
Tasmania;
Implementation of Approval conditions (pre construction & development commencement); and
Statutory reporting.
During the reporting period, the following exploration work was carried out:
3D Magnetic Modelling of Nelson Bay River and Rebecca Creek tenements
Study of HyLogged mineralogy of Sulphide Creek drill cores
•
•
• Reserve estimation for the NBR Project
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
HIGHLIGHTS
• Approvals from various State Government agencies and Federal Government for mining at the
Nelson Bay River Iron Project were received
Commencement of development of Nelson Bay River Iron Project
•
• Off-take Contract & funding for stage 1 (DSO phase) of Nelson Bay River Iron Project completed
•
Completion of 2656 m (2167 m RC and 489 m diamond) drilling along 48 drill holes (40 RC and 8
diamond) at the Nelson Bay Iron Project (NBR).
• Drilling confirmed mineralisation is open both along and across the strike and shows pinching and
swelling pattern
• Maiden DSO Reserves for the DSO mining at the Nelson Bay River Iron (NBR) Project were estimated
and reported. Fieldwork at Mt.Sorell has identified encouraging signs for the presence of Volcanic
Hosted Massive Sulphide (VHMS) mineralisation system in the area
EXPLORATION
The exploration activities included data review, geological reconnaissance, drilling, field visits of tenements,
statutory reporting, etc.
NELSON BAY RIVER IRON PROJECT (NBR)
During 2012-13, the company drilled 2167 m RC along 40 holes. Additionally, 488.8 m of HQ diamond coring
along 8 holes was performed for geotechnical studies pertaining to DSO pit and remaining samples stored for
future metallurgical test work and ore characterisation studies. The majority of RC drilling samples collected
are being stored for future metallurgical test work and ore characterisation studies. RC drilling ore intervals
were also analysed for traditional iron ore elements. The completed drilling is shown in Figure 1.
SIGNIFICANT INTERSECTIONS
Some significant assay intervals are given in Table 1.
TABLE 1: SIGNIFICANT IRON ORE INTERSECTIONS
Location
(m)
(m)
Grade (%)
Hole ID
From To
Interval
Fe
SiO2
Al2O3
P
S
NRC24
NRC25
NRC27
NRC28
NRC28
NRC29
NRC29
NRC31
NRC34
NRC49
45
61
32
56
62
13
18
38
25
24
49
68
36
60
68
18
27
45
28
29
4
7
4
4
6
6
9
7
3
5
60.14
60.21
57.88
59.55
59.61
59.96
59.13
58.21
62.06
58.248
4.09
4.88
7.56
10.23
5.62
4.92
8.82
8.19
6.11
11.49
1.2
1.42
2.87
0.77
1.1
0.99
0.65
0.98
1.05
0.81
0.085
0.063
0.125
0.049
0.121
0.087
0.082
0.071
0.071
0.023
0.023
0.015
0.012
0.074
0.031
0.026
0.012
0.041
0.05
0.046
LOI
7.9
7.04
6.15
3.29
7.23
7.61
5.42
6.42
3.55
2.87
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
Figure1: NBR 2013 drill hole (RC and geodic) plan over LIDAR generated DEM (GDA94, Zone 55).
3D AEROMAGNETIC INVERSION STUDY
During the reporting period, a 3D Magnetic Inversion study was carried out with the aim to assist in better
planning of the coming drilling program as well as to get a better understanding on the likely continuity of the
main magnetic anomaly from north to south at the tenement. The study was based on all available magnetic
data from MRT on the area.
The 3D magnetic inversion model (Figure 2) suggests continuity between the Main Body (Northern Anomaly)
and the South Anomaly, with in-between areas of non-magnetic material that could be inferred to be oxide
mineralisation; scattered iron ore detritus fragments were noticed during recent reconnaissance of the
Southern Anomaly area.
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
FIGURE 2: NBR 3D MAGNETIC MODEL WITH ALL DRILL HOLES - VIEWED FROM SOUTHWEST (DATA
MODIFIED FROM CONSULTANTS H & S AND COWAN).
The modelling indicates substantial continuation at depth of the magnetite-bearing ultramafic dyke.
DSO MAIDEN RESERVES AND MINE PLAN
RESERVES
The company published maiden DSO Reserves vide ASX announcement dated 29th October 2012. The DSO
Iron Reserve Statement that conforms to the JORC Resources guidelines is shown in Table 2. The methodology
& other details are provided in the said announcement.
TABLE 2: NELSON BAY IRON ORE PROJECT - DSO RESERVES STATEMENT
Resource Category
Mass (Mt)
Grade (%)
Fe
Al2O3 P
S
SiO2
LOI
Proven
Probable
Total
0.33
0.33
57.4
57.4
1.3
1.3
0.075
0.075
0.035
0.035
9.2
9.2
6.4
6.4
Average density 3t/m3; the use of significant figures does not imply precision; minor rounding errors. (DSO cut
off based on a nominal 54% Fe)
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
MINE PLAN FOR DSO IRON ORE
The production schedule for the first two years comprise of mining DSO iron ore .The DSO requires no further
beneficiation to produce a marketable product . It only requires crushing and screening. Two separate DSO pits
are planned in the first two years (comprising DSO South Pit and DSO North Pit, which is within the BFO
resources) with following total resultant pit quantities:
Ore Type
DSO Ore
Tonnes (Mt)
0.815
Grade (Fe %)
57.5
PROJECT IMPLEMENTATION STEPS
Necessary steps were completed for Implementation of Approval conditions (pre construction & development
commencement) including:
•
preparation and approval of various Management plans including the following :
o Construction Environment Management Plan ,
o Tasmanian Devil Monitoring Strategy ,
o EPBC Species Management and Protection Plan,
o Biological Monitoring Plan ,
o Dust Management Plan ,
o
Fire Management Plan ,
o Water Management Plan
o Pit Stability Management Plan
o PAF Verification & Separation plan
o Environmental Management System,
establishment of Fauna Habitat Protection Zone,
Pre Clearance surveys ,
recruitment of key personnel,
engineering of various aspects, and
agreements with various parties
Logging of drilling , laboratory analysis of drill samples & updating of Geological database
•
•
•
•
•
•
• Geotechnical study.
Compliance with all necessary conditions: earthworks & clearance for construction of work areas & access
upgrade, etc., was commenced until an injunction by the Federal court was emplaced in response to an
application for a judicial review of the Federal Environmental approval as further enumerated in this report.
OFF-TAKE & FUNDING AGREEMENT FOR DSO PHASE
The Company during the quarter entered into an Off-take Agreement for its Nelson Bay River Iron Ore DSO
products with Singapore based, Frost Global Pte Ltd (“Frost Global”). As a part of the agreement, Frost Global
will be providing funding of US$4 million by way of an advance towards the supply of Iron Ore to be adjusted
@ US$500,000 from each of the first 8 shipments of Iron Ore. The company has received US $1 million in this
regard during the financial year from Frost Global & a total of US $ 2 million as at the date of this report.
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
APPROVALS UPDATE
During the financial year 2012-13, all requisite approvals were received to develop a mine at Nelson Bay River
Iron Ore Project. These included the Mining Lease, Development Permit by the State Government including
EPA Tasmania and the approval from the Australian Commonwealth Government, under EPBC ACT.
There was an appeal against the State planning and environmental permit, which was dismissed by the
Tasmanian Resource Management and Planning Appeal Tribunal.
In July 2013, the company received EPBC approval following an application for a judicial review made in June
2013 quarter of the decision made on 18th December 2012 by the Federal Environment Minister to approve
the NBR project under the Environment Protection and Biodiversity Conservation Act. The Federal court
ordered an injunction in May 2013. Subsequently, the hearing was conducted & decision made by the Court in
July 2013. Seven grounds of challenge were put up. Three were abandoned during the course of the case.
Three were dismissed by the Court. Only one was upheld that the Minister had failed to comply with a
mandatory requirement that he consider an approved conservation advice regarding the Tasmanian Devil.
Subsequently, the Minister has done assessment as required under the EPBC Act & granted approval in July
2013.
SULPHIDE CREEK - EL43/2004
The Sulphide Creek tenement contains three principal prospects: Davie, Anomaly 24-28 and Coupon. In
2009/10, the Company drilled diamond drillhole SCDDH4 and 5 for 191 and 200 metres respectively at the
Davie Prospect (Figure 3). These holes interested two gold intervals (Table 3). To understand area's gold
mineralisation process(s) the Company decided to use CSIRO developed HyLogger to get spectral properties of
tenement's intersected mineralogical sequences (lithologies) in drill cores.
TABLE 3: SIGNIFICANT GOLD INTERSECTION ALONG DRILL
Location m (AGD 66)
Location (m)
Hole ID
SCDDH4
Includes
Northing
375689.5
Easting
375689.5
SCDDH5
375689.4
375689.4
Includes
From
19
31.5
37
39
159
164
181
To
37.5
34.5
51
51
168
167
183
Intersection (m)
Grade g/t
18.5
3
14
12
9
3
2
0.5
1.26
0.53
0.55
0.88
1.29
0.6
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
FIGURE 3: DAVIE PROSPECT PLAN SHOWING DRILL HOLE LOCATIONS OVER A GRIDDED GOLD IN SOIL
ANOMALY
STUDY APPROACH
The exercise was aimed to characterise the iron oxide, hydrous -clay and anhydrous silicate mineralogy of the
3-drillhole cores. Spectroscopic sample resolution was ~8*18 mm sampled every 8 mm along the core. The
HyLogging system collects 125 samples per metre of core (before masking). Digital imagery was acquired
simultaneously with the mineral spectroscopy with a resolution of ~0.2 mm. Data analysis was carried out
using “The Spectral Geologist” (TSG-Hot Core) software.
STUDY FINDINGS
Past studies have made little reference to clay mineralogy. The HyLogging data offers fresh insight that should
be valuable in re-thinking mineralised alteration signatures in the region.
A spatial association is observed between the gold (Au) assays and spectroscopic signatures of an alteration
mineral assemblage comprising dickite plus hematite, minus white mica and kaolin, occurring at a boundary
(gradient) in mica chemistry composition Figure 4.
Figure 4A shows the presence of relative abundance of the iron oxide. The dominant iron oxide here is yellow
brown goethite. The deeper the goethite colour the stronger the relative absorption.
Figure 4B of the weighted gold (Au) assays indicates that Au does not occur in intervals without iron oxide
development.
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
FIGURE 4: SPATIAL DISPLAY OF MINERALOGY AND AU DISTRIBUTION IN SCDDH5
(FIGURE 4A:
DISTRIBUTION)
INTENSITY OF
IRON OXIDE DEVELOPMENTFIGURE 4B: WEIGHTED AU ASSAY
During the month of November spectral information from three diamond drill holes from Coupon Prospect,
drilled in the period 1993-95, was studied by the consultant. Over all finding are found to be similar to that of
Davies Prospect, i.e. a spatial association is observed between the gold (Au) assays and spectroscopic
signatures of an alteration mineral assemblage comprising dickite plus hematite, minus white mica and kaolin,
occurring at a boundary (gradient) in mica chemistry composition.
In view of the spectral study findings from Davie Prospect, a field reconnaissance of the tenement was
undertaken from 11 to 14 December 2012. During reconnaissance at relatively regular intervals from available
outcrops, 78 rock chip samples for HyLogger analysis, 17 grab and composite rock chip samples for multi-
element analysis were collected and dispatched to relevant labs. Assay results from fieldwork conducted have
been received. Due to Consultant's heavy commitments elsewhere, analysis of 78 rock chip samples collected
for HyLogger analysis are pending and will be attended to during second half of 2013.
A section along ABT railway line cuttings was mapped. A key rail cutting starting from the Coupon access
showed moderate to steep west dipping shear – related foliation; similar to Davie Prospect. A number of
quartz vein orientations were identified
Observations made during this reconnaissance suggest that detailed geological mapping is required to
enhance understanding of Anomaly 24-28 and environs before planning any drilling in the area of Sulphide
Creek tenement.
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
MT. SORELL (EL 42/2008)
During the year, analysis & interpretation was carried out consequent to field trip of May 2012 .Work done by
various agencies in the area suggests that the area is prospective for VHMS and structurally controlled gold
mineralisation. The 2011/12 fieldwork has identified encouraging signs for the presence of Volcanic Hosted
Massive Sulphide (VHMS) mineralisation system in the area; supporting earlier explorers view. When
compared the 2011/12 work to currently held VHMS models, the distribution of various soil analyses reveals
an effective cross section through a VHMS alteration system in the area (Figure 5).
(SOURCE: GEMMELL & FULTON (1998)
FIGURE 5: INTERPRETED VHMS ALTERATION ZONE AT CLARK VALLEY COMPARED TO A SCHEMATIC
MODEL OF THE LITHOGEOCHEMICAL HALO AND VECTORS TO ORE FOR THE HELLYER VHMS SYSTEM
(AFTER GEMMELL AND FULTON (1998).
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
In Mt Sorell area, a principal fluid focus appears to be beneath the Central Clark Zinc Anomaly (CZA). Vectors
determined from soil analysis as well as cropping out pervasive silicification and chlorite alteration support
this.
Further, the Ti/Zr ratio from the current sampling highlights the presence of a mafic to intermediate (largely
basalt) horizon in the study area. Figure 6 shows a spatial distribution of high (mafic) Ti/ Zr ratio corresponding
to the aeromagnetic high. Mafic volcanic horizons at the CVC – Tyndall Group boundary in the area are a
known VHMS host within the Mount Read Volcanics.
FIGURE 6: GEOLOGY AND OUTLINE PLOT
OF TI/ZR RATIO OVER GRIDDED TOTAL
MAGNETIC
INTENSITY FOR MT SORELL
(WTRMP 2002).
Moreover, distribution of anomalous Pb in
the area is localised within the strongest Zn
anomalous part, as well as Cu in soils is
relatively widespread within the identified
coherent N-S zone. This broad Zn and Cu
distribution
is recognised as common to
VHMS style mineralisation environments,
Gemmell, etc. al. (1998), consider Pb to be a
more proximal indicator for mineralisation.
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
Mt. BERTHA (EL 42/2004)
Over the years, various agencies explored the tenement area and environs and identified several exploration
targets (Figure 7). The area is considered potential for magnetite, magnesite and Cu Zn and Au mineralisation
in the Arthur Metamorphic Complex (AMC)).
Due to thick vegetation cover, incised by flowing streams, poor outcropping rocks the area is difficult to
explore. Shree fieldwork was of low impact in nature and was confined to targets A, B, C and along the Savage
River Mine Pipeline (Figure 3). The exploration activities included reconnaissance geological mapping,
determining in situ magnetic susceptibility of rock types encountered and collection of 17 rock chip samples.
Study findings
Magnetic susceptibilities for the targets examined are generally >5 SI, with basalts ranging from 10 to 52 SI.
The AMC schists returned values in the range 5 to 9 SI, favourably indicating a likely relationship to an
overprinting magnetite and Cu, Zn and Au mineralising event; a schist (AMC) sample returned an indicative
35m @ 242 ppm Cu with maximum of 401ppm Cu.
To date work done suggests that the area has all indications for the discovery of a sizable mineralisation of cu,
Zn, magnetite, etc.
Continue with the pattern of exploration adapted, i.e., reconnaissance geological mapping, rock chip and soil
sampling, ground geophysical work along grid lines, etc.
FIGURE 7: Mt BERTHA TENEMENT PLAN WITH IDENTIFIED TARGETS
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
OTHER TENEMENTS
Shree Minerals’ exploration activities for the year in review were confined to those referred to in this report.
However, the Company can report that all other tenements remain in good standing and meet statutory
requirements.
OUTLOOK 2013/2014
Based on the encouraging exploration results, further to normal ongoing exploration activities, in the coming
year the following activities will be undertaken:
NELSON BAY RIVER IRON ORE PROJECT
Development of Nelson Bay River Project, DSO phase
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
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 $8,183,104 (2012: $8,805,865)
The Directors believe the Company is in a financial position to pursue its current operations.
AFTER BALANCE DATE EVENTS
• On 17th July 2013, the Federal court set aside the approval for Nelson Bay River Project under EPBC
act.
• On 31ST July 2013, the Federal Environment Minister issued an approval for Nelson Bay River Project
under EPBC act.
• Recommencement of development works at Nelson Bay River Project from 12th August 2013 after
being suspended following injunction by Federal Court in May 2013.
There has not arisen in the interval between the end of the financial year and the date of this report any other
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.
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
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. As 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.
DIRECTORS’ INTERESTS
ORDINARY SHARES
OPTIONS
SHARE PERFORMANCE
RIGHTS
Mr S Loyalka
0
Mr A Jagatramka
0
Mr M Pal
1,000,000
Mr A Lau
0
0
Mr A Shah
Total 45,962,500 0 1,000,000
0
0
0
0
0
FULLY PAID
25,915,000
15,222,500
300,000
0
4,525,000
INFORMATION ON DIRECTORS
Mr Sanjay Loyalka, Chief Executive Officer and Chairman B Com (Hon), CA
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
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. He is widely regarded
for his foresight, and considered as an acknowledged expert in matters of coal and coke. He has presented
papers on the subject at number of International Conferences.
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DIRECTORS’ REPORT
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 move into coalmine ownership in Australia and forward into
steel making, coupled with wind energy and upcoming waste-heat power generation.
Mr. Arun Kumar Jagatramka is a member of a number of boards, Gujarat NRE Coking Coal Limited (Australia),
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) and FAusIMM (Australia)
Mr Pal has an extensive management experience in the mining and exploration industry, both within Australia
and overseas. He has worked across many commodities, including base metals, gold, uranium, iron, coal, oil
shale, oil, and gas, among others.
In Australia, he started his career with the exploration and mining of uranium with Queensland Mines, a
subsidiary of Kathleen Investment, Australia.
Mr Pal spent two periods working with Rio Tinto (erstwhile CRA), commencing in 1970. During this time he was
Principal Geologist for Hamersley Iron Pty Limited, where he made several iron ore discoveries including,
concealed iron ore bodies 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.
Besides company directorship, Mr Pal runs his own Geological Consultancy business. From 2000 to April 2007,
he provided consulting services to several exploration/mining companies including Auiron Energy, Centrex
Metals, Rio Tinto Exploration, Hamersley Iron, Consolidated Minerals, Sinosteel Australia, Sinosteel Midwest
Corporation, Sumitomo Corporation, Golden West Resources Ltd, Fairstar Resources Ltd, and NEX Metals
Exploration Ltd in Australia. Overseas, in India he worked as a Technical Adviser for Rio Tinto Orissa Mining
Limited (a Rio Tinto Joint Venture with Orissa Mining Corporation, India) and as a consultant to Tata Iron &
Steel, and Mid-West Granite, in Iran as a Consultant to International Minerals Consulting Company, and as a
consultant to Oswal Brasil Refinaria de Petróleo, in Brazil.
From May 2007 to October 2009 Mr Pal worked for Fairstar Resources Ltd (FAS; an ASX listed company) as an
Exploration Adviser/Technical and Executive Director – Exploration/Technical. While with Fairstar, he made
two 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.
At Shree Minerals, he has identified the Direct Shipping Iron Ore (DSO) at the Company's Nelson Bay River
Prospect.
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 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.
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DIRECTORS’ REPORT
Mr Amu Shah, Non Executive Director
Mr Amu Shah is a director and shareholder in various businesses ranging from retail trade, distribution of
office and stationery products, services to the mining industry, manufacturing, and property development and
ownership.
Mr Amu Shah is the Honorary Consul for Kenya in Perth.
Mr Amu Shah has extensive international and local business experience.
REMUNERATION REPORT (AUDITED)
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.
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. directors & 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 - directors , executives and senior manager receive a fixed sum payable monthly in cash;
Page 16
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
b. bonus - directors , executives and nominated senior managers are eligible to participate in a profit
participation plan if deemed appropriate;
c.
long-term incentives - directors, executives, 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 - directors, executives and senior managers are eligible to participate in superannuation
schemes and other appropriate additional benefits.
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 non-executive
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 directors, executives, and senior management of the Company
through the operation of a profit participation plan at the ultimate discretion of the Board.
Details of remuneration
Key Management Personnel comprise the executive and non- executive directors only during FY2013.The remuneration for
Key Management Personnel of the Company during the year and the previous year was as follows:
Page 17
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
2013
Short-term Employee Benefits
Post-
employment
Benefits
Cash,
salary,
Directors
Fees
Cash
profit
share,
bonuses
Non-
cash
benefits
Allowances
Super-
annuation
Other
Long-
term
Benefits
Share
Based
Payments
Mr S Loyalka
Executive Director
183,486
16,055
40,138
17,500
16,055
273,234
Mr A Jagatramka
Non Executive
Director
Mr M Pal
Non Executive
Director
Mr Andy Lau
Non Executive
Director
Mr Amu Shah
Non Executive
Director
2012
0
0
0
0
0
0
0
0
0
0
0
0
Short-term Employee Benefits
0
0
0
0
0
0
0
16,514
0
0
0
0
1,445
3,612
0
1,445
0
23,016
Post-
employment
Benefits
%
Performance
Based
Total
0
200,000
0
17,500
0
43,750
0
17,500
0
17,500
0
296,250
0
0
0
0
0
0
Cash,
salary,
Directors
Fees
Cash
profit
share,
bonuses
Non-
cash
benefits
Allowances
Super-
annuation
Other
Long-
term
Benefits
Share
Based
Payments
Total
%
Performance
Based
Mr S Loyalka
Executive Director
201,835
Mr A Jagatramka
Non Executive
Director
Mr M Pal
Non Executive
Director
Mr Andy Lau
Non Executive
Director
Mr Amu Shah
Non Executive
Director
2,294
75,000
30,000
0
309,129
0
0
0
0
0
0
0
0
0
0
0
0
0
18,165
0
0
0
0
206
0
0
0
0
0
0
0
0
90,386
310,386
46,886
49,386
0
0
33,900
108,900
31%
30,386
60,386
48,386
48,386
0
0
0
18,371
0
249,944
577,444
Options, Performance shares & Shares issued as part of remuneration for the period ended
30 June 2013
There were no Options, Performance shares & Shares issued as part of remuneration for the period ended 30
June 2013. Please refer to Note 19 for further information.
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
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 arrangements for Sanjay Loyalka, as the sole executive Director and Chief Executive Officer
and Chairman and Company Secretary, provide for remuneration comprising salary and superannuation
totalling $320,000. During the financial year 2012-13, at Mr. Loyalka’s discretion (to conserve cash resources
pre development) he was paid a cash remuneration of $200,000 including superannuation. Mr. Loyalka’s
employment arrangements cover five-year tenure that commenced from 10 May 2008 and has been extended
in 2013 by another 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. Accordingly , during the
financial year 2012-13, he was paid a total cash remuneration of $43,750 by way of consulting fees .Mr. Amu
Shah is a Non Executive Director of the company. During the financial year 2012-13, he was paid a cash
remuneration of $17,500.
Mr. Arun Jagatramka is a Non Executive Director of the company. During the financial year 2012-13, he was
paid a cash remuneration of $17,500 including superannuation.
Mr. Andy Lau is a Non Executive Director of the company. During the financial year 2012-13, he was paid a
cash remuneration of $17,500 by way of consulting fees.
END OF REMUNERATION REPORT
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
Amu Shah
Board Meetings
Meetings
attended
9
5
9
7
9
Meetings held
whilst in office
9
9
9
9
9
The full Board fulfils the role of remuneration, nomination, and audit committees.
Indemnifying Officers or Auditor
The Company has paid insurance premiums in respect of directors’ and officers’ liability and legal expenses
insurance contracts for current and former directors, executive officers and secretaires. The directors have not
included details of the premium paid in respect of the directors’ and officers’ liability and legal expenses’
insurance contracts, as such disclosure is prohibited under the terms of the contract.
Options
At the date of this report, the unissued ordinary shares of Shree Minerals Limited under option are NIL.
Page 19
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S H R E E M I N E R A L S L T D
DIRECTORS’ REPORT
Proceedings on Behalf of Company
During the year, there was an appeal against the State planning and environmental permit for the
development of Nelson Bay River Iron Project, which was dismissed by the Tasmanian Resource Management
and Planning Appeal Tribunal.
During the year, there was also an application for a judicial review of the decision made on 18th December
2012 by the Federal Environment Minister to approve the NBR project under the Environment Protection and
Biodiversity Conservation Act. The hearing was conducted & decision made by the Court in July 2013. Seven
grounds of challenge were put up. Three were abandoned during the course of the case. Three were dismissed
by the Court. Only one was upheld that the Minister had failed to comply with a mandatory requirement that
he consider an approved conservation advice regarding the Tasmanian Devil. Subsequently, the Minister has
done assessment as required under the EPBC Act & granted approval in July 2013.
No person has applied for leave of Court to bring any other proceedings on behalf of the Company or
intervene in any other proceedings to which the Company is a party for taking responsibility on behalf of the
Company for all or any part of these proceedings.
The Company was not a party to any other proceedings during the year.
Non-audit Services
The Board of Directors 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.
Fees of $3,415 (2012: 3,000) for Taxation services (compliance and consulting) being the non-audit services
that were paid/payable to the external auditors during the year.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2013 has been received and can be
found on page 26 of annual report.
Signed in accordance with a resolution of the Board of Directors.
Sanjay Loyalka
Chairman
Signed in Perth the 23 rd day of September 2013.
Page 20
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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 on behalf of the shareholders monitor the business affairs of the Company. For this, they
formally have 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 2013.
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.
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
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
Satisfied.
at
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.
2.2
The chair should be an independent director.
Not Satisfied. Due to the size of the company and its
operations Mr Sanjay Loyalka is both an Executive 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 Chief Executive 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 (5), this function is efficiently achieved
with full board participation. Accordingly, the Board has
not established a nomination committee.
2.5
2.6
Companies should disclose the process for evaluating
the performance of the board, its committees and
individual directors.
Satisfied. Board Performance Evaluation 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 2
Satisfied.
Whilst the performance of the Board is appraised on an
ongoing basis, during the year no formal appraisal was
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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
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
3.3
3.4
Companies should establish a policy concerning
diversity and disclose the policy or a summary of that
policy. The policy should include requirements for the
board to establish measurable objectives for achieving
gender diversity for the board to assess annually both
the objectives and progress in achieving them.
Not satisfied. The company considers that given the
current small size of the company’s operations where
there are very few employees, this objective is not
practical to be achieved till such time that the company’s
operations are increased. Accordingly, the company has
not established a policy concerning diversity.
Companies should disclose in each annual report the
measurable objectives for achieving gender diversity
set by the board in accordance with the diversity policy
and progress towards achieving them.
Companies should disclose in each annual report the
proportion of women employees
in the whole
organisation, women in senior executive positions and
women on the board.
Not satisfied. The company considers that given the
current small size of the company’s operations where
there are very few employees, this objective is not
practical to be achieved till such time that the company’s
operations are increased. Accordingly, the company has
not established a policy concerning diversity.
Not satisfied. The company does not have any women
employees in the whole organisation, women in senior
executive positions and women on the board.
3.5
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
Page 23
Not satisfied. The Board consider that given the current
size of the board, 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.
For personal use only
S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
the board
Has at least three members
4.3
The audit committee should have a formal charter.
SHREE MINERALS LIMITED CURRENT PRACTICE
Audit Committee charter
Satisfied.
is available at
www.shreeminerals.com in the Corporate Governance
statement.
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
their participation at general
and encouraging
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 2012 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
in
that
equivalent)
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
in relation to
effectively
financial reporting risks.
in all material respects
Page 24
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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
7.4
Companies should provide the information indicated in
the Guide to reporting on Principle 7
Satisfied
8.1
The board should establish a remuneration committee. Not Satisfied. The Board consider that given the current
size of the board, this function is efficiently achieved with
full board participation. Accordingly, the Board has not
established a remuneration committee.
8.2
The remuneration committee should be structured so
that it :
Consists of a majority of independent directors
Not Satisfied. The Board consider that given the current
size of the board, this function is efficiently achieved with
full board participation. Accordingly, the Board has not
established a remuneration committee.
Is chaired by an independent chair
Has at least three members
8.3
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.
8.4
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 25
For personal use only
Auditor’s Independence Declaration
To the Directors of Shree Minerals Ltd
10 Kings Park Road
West Perth WA 6005
PO Box 570
West Perth WA 6872
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of Shree Minerals Ltd for the year ended 30 June 2013, I declare that,
to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
M J Hillgrove
Partner - Audit & Assurance
Perth, 23 September 2013
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
Page 26
For personal use only
S H R E E M I N E R A L S L T D
STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDING 30 JUNE 2013
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
Earnings per share for (loss) attributable to ordinary equity
holders of the company:
Basic & diluted (loss) cents per share
Note
30-Jun-13
30-Jun-12
$
$
103,537
171,964
-104,540
-548,588
-24,129
-30,405
-47,419
-136,882
-127,268
-915,694
292,932
-622,762
0
-622,762
-2,440
-519,215
-14,648
-24,344
0
-84,720
-44,199
-517,602
266,702
-250,900
0
-250,900
-0.65
-0.26
4
5
The accompanying notes form part of these financial statements.
Page 27
For personal use only
S H R E E M I N E R A L S L T D
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2013
Assets
Current Assets
Cash and cash equivalents
Receivables
Total Current Assets
Non-Current Assets
Exploration and evaluation
Mine Development
Other Assets
Plant and equipment
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Loans
Provisions
Total Current Liabilities
Non-Current Liabilities
Loans
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
Note
30-Jun-13
$
30-Jun-12
$
6
7
9
9A
6A
8
10
10
10
10A
11
12
12
1,233,606
122,122
1,355,728
1,031,779.38
6,172,938.85
801,851.56
151,468.68
8,158,038.47
9,513,767
-1,279,424
-12,876
-18,694
-1,310,995
-19,668
-19,668
2,595,756
341,796
2,937,552
5,931,785
0
93,772
2,889
6,028,446
8,965,998
-156,294
0
-3,839
-160,133
0
0
-1,330,663
-160,133
8,183,104
8,805,865
9,678,432
284,587
-1,779,916
8,183,104
9,678,432
284,587
-1,157,154
8,805,865
The accompanying notes form part of these financial statements.
Page 28
For personal use only
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 2013
Note
Issued
Capital
$
Accumulated
Losses
$
Share based
option reserve
Total
$
BALANCE AT 1 July 2011
8,500,310
-906,253
129,145
7,723,202
Total comprehensive income for the period
Shares Based Option Reserve Valuation
0
0
Shares issued during the year
11
1,256,500
-250,901
0
-250,901
0
0
0
155,442
155,442
0
0
1,256,500
-78,378
-78,378
9,678,432
-1,157,154
284,587
8,805,866
Capital raising costs
SUB-TOTAL
Dividends paid or provided for
0
0
0
0
BALANCE AT 30 JUNE 2012
9,678,432
-1,157,154
284,587
8,805,866
BALANCE AT 1 July 2012
9,678,432
-1,157,154
284,587
8,805,866
Total comprehensive income for the period
0
-622,762
0
-622,762
SUB-TOTAL
9,678,432
-1,779,916
284,587
8,183,104
Dividends paid or provided for
0
0
0
0
BALANCE AT 30 JUNE 2013
9,678,432
-1,779,916
284,587
8,183,104
The accompanying notes form part of these financial statements.
Page 29
For personal use only
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 2013
Cash flows from operating activities (including exploration)
Payments to suppliers and employees (inclusive of GST)
Interest received
Research and Development tax concession
Other Income
Finance and borrowing costs paid
Note
30-Jun-13
30-Jun-12
$
$
-2,265,709
128,832
559,633
0
0
-1,193,027
179,633
0
76,000
-
Outflow from operations (including exploration)
15(b)
-1,577,244
-937,394
Cash flows from investing activities
Payment for plant and equipment
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
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
-152,475
-152,475
0
0
1,075,648
1,075,648
-654,071
2,689,528
-1,862
-1,862
1,150,000
-78,378
0
1,071,622
132,367
2,557,161
Cash and cash equivalents at the end of the financial period
2,035,457
2,689,528
Cash and cash equivalents at the end of the financial period
Cash at Bank & in hand
Other Assets
Cash and cash equivalents at the end of the financial period
6
6A
1,233,606
801,852
2,035,457
2,595,756
93,772
2,689,528
The accompanying notes form part of these financial statements.
Page 30
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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 2013
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 Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative 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 2013 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.
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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 2013
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.
R&D tax credits are accounted for when recognised.
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 by directors first when indicators of impairment exist
and thereafter annually 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 company 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.
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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 2013
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the statement of comprehensive income. 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.
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. Mine Development
Accumulated exploration, evaluation and development expenditure in respect of each identifiable area of
interest is transferred to mine development once a mineable resource has been established & published as per
JORC guidelines and necessary steps to commence a mining development for that area have been
commenced.
When production commences, the accumulated costs for the relevant area of interest are amortised over the
life of the area according to the rate of depletion of the economically recoverable reserves.
e. 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 the company, 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.
f. 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
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 2013
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
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.
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 2013
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
instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in
the income statement.
Impairment of Non Financial Assets
g.
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
h.
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.
i. 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.
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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 2013
j. 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.
k. 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
l. 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).
m. 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.
n. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
o. 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).
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 2013
Key Judgements – Mine Development expenditure
Mine Development expenditure are carried forward in respect of each identifiable area of interest where a
mineable resource has been established & published as per JORC guidelines and has reached a stage that
permits reasonable assessment that necessary steps to commence a mining development for that area have
been commenced. Refer to the accounting policy stated in note 1(d).
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 or other appropriate methodology, using the assumptions
detailed in note 19.
p. Operating segments
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.
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
Amu Shah
Chairman
Director
Director
Director
Director
Key management personnel remuneration has been included in the Remuneration Report section of the
Directors Report. Total payments including valuation of share based payments for FY2013 was $296,250
Number of Shares Held by Key Management Personnel
30 June 2013
Key Management Person
Balance
1 July 2012
Received as
Compensation
Options
Exercised
Net Change
Other
Balance on
Resignation
Balance
30 June 2013
Mr Sanjay Loyalka
25,915,000
0
Mr Mahendra Pal
300,000
Mr Arun Jagatramka
15,222,500
Mr Andy Lau
Mr Amu Shah
0
4,525,000
45,962,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
25,915,000
0
0
0
0
0
300,000
15,222,500
0
4,525,000
45,962,500
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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 2013
30 June 2012
Key Management Person
Balance
1 July 2011
Received as
Compensation
Options
Exercised
Net Change
Other
Balance on
Resignation
Balance
30 June 2012
Mr Sanjay Loyalka
25,415,000
500,000
Mr Mahendra Pal
300,000
0
Mr Arun Jagatramka
15,085,000
137,500
Mr Andy Lau
Mr Amu Shah
0
3,750,000
44,550,000
0
150,000
787,500
0
0
0
0
625,000
625,000
0
0
0
0
0
0
0
25,915,000
0
0
0
0
0
300,000
15,222,500
-
4,525,000
45,962,500
Number of Options Held by Key Management Personnel
30 June 2013
Key Management
Person
Mr Sanjay
Loyalka
Mr Mahendra Pal
Mr Arun
Jagatramka
Mr Amu Shah
Mr Andy Lau
Balance
30 June
2012
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
5,000,000
30 June 2012
Key Management
Person
Balance
30 June
2011
Granted as
compensation
Options
Exercised
Net
Change
Other
Balance
30 June 2013
Total
Vested
30 June
2013
Total
Exercisable
30 June
2013
Total
Unexercisable
30 June 2013
0
0
0
0
0
0
0 1,000,000
0 1,000,000
0 1,000,000
0 1,000,000
0 1,000,000
0 5,000,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Granted as
compensation
Options
Exercised
Net
Change
Other
Balance
30 June 2012
Total
Vested
30 June
2012
Total
Exercisable
30 June
2012
Total
Unexercisable
30 June 2012
Mr Sanjay
Loyalka
Mr Mahendra Pal
Mr Arun
Jagatramka
Mr Amu Shah
Mr Andy Lau
0
1,000,000
0 1,000,000
1,000,000 1,000,000
1,000,000
1,000,000
0
0
0
1,000,000 1,000,000
1,000,000
0
1,000,000
0 1,000,000
1,000,000 1,000,000
1,000,000
625,000
1,000,000
625,000
375,000
1,000,000 1,000,000
1,000,000
0
1,000,000
0 1,000,000
1,000,000 1,000,000
1,000,000
1,625,000
4,000,000
625,000 3,375,000
5,000,000 5,000,000
5,000,000
Number of Share Performance Rights (SPR) held by any Key Management Personnel
0
0
0
0
0
0
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 2013
On 30 June 2013, Mr.Mahendra Pal held 1,000,000 share performance rights & the same were not
excersiable on 30th June 2013. No other Key Management Personnel held any share performance rights
on 30 June 2013.
On 30 June 2012, Mr.Mahendra Pal held 1,000,000 share performance rights & the same were not
excersiable on 30th June 2012. No other Key Management Personnel held any share performance rights
on 30 June 2012.
Please refer to Note 19 for further information regarding the fair value of share options, SPR and assumptions.
NOTE 3: AUDITOR’S REMUNERATION
Remuneration paid or payable of the auditor for:
– Auditing or reviewing the financial report
– Taxation services and corporate services
Note: 2012 figures restated.
30 June 2013
30 June 2012
$
$
17,850
3,415
21,265
11,945
3,000
14,945
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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 2013
NOTE 4: INCOME TAX
Shree Minerals Ltd
a. Income tax expense
Current tax
Deferred tax
Deferred income tax expense included in income tax expense comprises:
(Increase) in deferred tax assets
Increase in deferred tax liabilities
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 expense/(benefit) on operating profit/(loss) at 30%
Add / (Less)
Tax effect of:
Non-deductible expenses
Deferred tax asset not brought to account
Research & Devlopment Offset
Income tax attributable to operating loss
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
d. Deferred tax liabilities
Exploration expenditure
Set-off deferred tax assets
Net deferred tax liabilities
e. Tax losses
Benefit of unused tax losses for which no deferred tax asset has been
recognised
2013
2012
0
0
0
-12,152
12,152
0
0
0
0
-969,058
969,058
0
-274,708
-155,281
0
274,708
-292,932
-292,932
Nil
Nil
1,117,630
23,434
36,132
-1,177,197
0
1,177,197
-1,177,197
0
75,004
80,277
-266,702
-266,702
Nil
Nil
1,094,703
7,392
62,951
-1,165,045
0
1,165,045
-1,165,045
0
195,333
115,914
Page 40
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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 2013
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 & diluted EPS
30 June 2013
30 June 2012
$
$
(622,762)
(250,901)
Number of
Shares
Number of
Shares
95,265,753
95,265,753
Options totalling NIL (2012: 13,750,000) and Share Performance Rights totalling 1,000,000 (2012: 1,000,000)
are anti – dilutive and not included in the calculation of diluted earnings per share.
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and in hand
NOTE 6A: OTHER ASSETS
Cash deposits supporting Bank Guarantees for Rehabilitation
Bonds
NOTE 7: TRADE AND OTHER RECEIVABLES
Interest receivable
Prepayments
Income Tax offsets
Trade receivables
GST and ABN withholding tax receivables
30 June 2013
30 June 2012
$
$
1,233,606
2,595,756
30 June 2013
30 June 2012
$
801,852
$
93,772
30 June 2013
30 June 2012
$
$
13,424
18,920
0
623
89,155
122,122
37,464
13,954
267,956
624
21,799
341,797
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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 2013
NOTE 8: PROPERTY, PLANT & EQUIPMENT
Office
Total
Plant and
equipment
Equipment
Earthwork
s
$
96,222
0
At Cost
Accumulated
Depreciation
Balance
30 June 2013
at
$
49,438
-3,064
$
$
11,108
-2,235
156,768
-5,299
96,222
46,374
8,873
151,469
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
Earthwork
s
$
Plant and
equipment
Office
Total
Equipment
$
$
$
Opening
balance
1 July 2012
Additions
at
Depreciation
expense
Balance
30 June 2013
at
0
96,222
0
96,222
0
49,438
-3,064
46,374
2,889
7,226
2,889
152,886
-1,242
-4,306
8,873
151,469
Page 42
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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 2013
NOTE 9: EXPLORATION EXPENDITURE
30 June 2013
30 June 2012
Exploration and evaluation phase expenditure capitalised
$
1,031,779
Movements
Opening balance at 1 July 2011
Exploration capitalised
Impairment / relinquishment
Balance at 30 June 2012
Opening balance at 1 July 2012
Exploration capitalised
Impairment / relinquishment
Transferred to Mine Development
Balance at 30 June 2013
$
5,931,785
$
5,209,739
722,046
0
5,931,785
5,931,785
1,272,933
0
6,172,939
1,031,779
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.
NOTE 9A: MINE DEVELOPMENT
Opening Balance
Transferred from Exploration
30 June 2013
30 June 2012
$
0
6,172,939
6,172,939
$
0
0
0
Page 43
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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 2013
NOTE 10: TRADE AND OTHER PAYABLES
Current
Trade and other creditors
Loan
Provisions
30 June 2013
30 June 2012
$
$
1,279,424
12,876
18,694
1,310,995
156,294
0
3,839
160,133
Note: Trade creditors include advance received from Frost Global . The Company during the year entered into
an Off-take Agreement for its Nelson Bay River Iron Ore DSO products with Singapore based, Frost Global Pte
Ltd (“Frost Global”). As a part of the agreement, Frost Global will be providing funding of US$4 million by way
of an interest free advance towards the supply of Iron Ore to be adjusted @ US$500,000 from each of the first
8 shipments of Iron Ore. The company has received US $1 million in this regard during the financial year from
Frost Global & a total of US $ 2 million as at the date of this report.
NOTE 10A: TRADE AND OTHER PAYABLES
Non-Current
Loan
NOTE 11: CONTRIBUTED EQUITY
30 June 2013
30 June 2012
$
19,668
19,668
$
0
0
30 June 2013
30 June 2012
$
$
95,947,500 (2012: 95,947,500) Fully paid ordinary shares
9,678,432
9,678,432
The Company has issued capital amounting 95,947,500 (2012:
95,947,500) with no par value
Movements
Opening balance
Shares issued
Options exercised and to be allotted
Shares issued or applied for during the year
Capital raising costs
Closing balance
9,678,432
0
0
0
0
9,678,432
8,500,310
1,150,000
106,500
1,256,500
(78,378)
9,678,432
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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 2013
(a) Ordinary Shares
At the beginning of the reporting period
Number of
Shares
Number of
Shares
95,947,500
87,872,500
Shares issued during the period
–
–
–
15 July 2011
15 December 2011
21 January 2011
At reporting date
(b)
Options
0
0
0
7,187,500
887,500
0
95,947,500
95,947,500
At the date of this report, the unissued ordinary shares of Shree Minerals Limited under option are nil.
Opening balance : 13,750,000
Expired during the year : 13,750,000
Balance 0
(c)
Share Performance Rights
At the date of this report, the unissued ordinary shares of Shree Minerals Limited under Share Performance Rights
(“SPR”) are as follows:
1 SPR for every 1 tonne of DSO Iron Ore sold over the three years ending on 30th June 2013, 30th June 2014 and 30th
June 2015 respectively subject to issue of maximum of 1,000,000 SPR in aggregate.
No person entitled to exercise the SPR had or has any right by virtue of the option to participate in any share issue
of other body corporate.
(d)
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 2013 and 30 June 2012 are as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
2,035,457
2,689,528
122,122
(1,330,663)
348,030
(166,367)
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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 2013
Working capital position
826,916
2,871,191
NOTE 12: ACCUMULATED LOSSES AND RESERVES
a. Accumulated Losses
At the beginning of the reporting period
Nett loss
At reporting date
b. Option Reserve
30 June 2013
30 June 2012
$
$
1,157,154
622,762
1,779,916
906,253
250,901
1,157,154
The option reserve records items recognised as expenses on valuation of share based payments including employee
options. Please refer note 19 for more information.
During the year nil (2012: 4,000,000) options and nil (2012: 1,000,000) Share Performance Rights were issued.
Accordingly, the increase in share based option reserve of nil (2012: $155,442) recorded in the current reporting
period.
NOTE 13: COMMITMENTS
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
30 June 2013
30 June 2012
$
$
79,870
180,000
0
0
0
0
b. The Company has other rental and expenditure commitments of $ 10,591 within the next 12 months. This
pertains to office lease which the current term is till January 2014. The rental expenditure incurred during the
year was $ 20,774.34 ( 2012: $ 19,970.50)
NOTE 14: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The company has currently met all the expenditure commitments relating to tenement exploration activities as
required under the exploration licenses granted by Mineral Resources Tasmania.
The Directors are not aware of any other contingent liabilities or contingent assets.
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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 2013
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:
Cash at Bank & in Hand
Other Assets ( Cash Deposits deposits supporting Bank
Guarantees for Rehabilitation Bonds )
30 June 2013
30 June 2012
$
$
1,233,606
801,852
2,595,756
93,772
Sub Total
2,035,457
2,689,528
(b) Reconciliation of Cash Flow from Operations with
Operating Loss after Income Tax
Operating loss after income tax
(622,762)
(250,901)
Non-cash flows:
Share based payments
Capital raising costs
Tenement impairment/relinquishment
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
0
0
0
4,307
219,674
(1,272,934)
94,471
261,942
(78,378)
0
680
(149,368)
(643,667)
(77,702)
Net outflow from operations
(1,577,244)
(937,394)
NOTE 16: RELATED PARTY TRANSACTIONS
There are no related party transactions except for remuneration payments to employees in normal course of
business ( in financial year 2012 , Mrs Rashmi Loyalka provided accounts payable services to the company as a
contractor to a value of $20,000. Mrs. Loyalka is related to the Chairman, Mr Sanjay Loyalka . During the
current financial year 2013, Mrs. Loyalka has taken up employment in the company & is paid remuneration in
normal course).
Disclosures relating to key management personnel compensation are set out in Note 2 to the financial
statements, and in the Remuneration Report contained within the Directors Report. Mr.Mahendra Pal’s fees as
disclosed are paid through his consulting firm Sai Geo Consultancy.
NOTE 17: FINANCIAL INSTRUMENTS
a. Financial Risk Management
The Company’s financial instruments consist mainly of deposits with banks and accounts receivable and
payable.
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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 2013
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.
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 2013, 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 $ 17,791
lower/higher (2012 - $21,577lower/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.
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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 2013
c. 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:
Fixed Interest Rate
Floating Interest
Rate
2013
$
2012
$
1,340,895 2,616,719 694,563
1 Year or Less
2013
2012
$
$
72,809
Cash
Trade and other
receivables
Total Financial
Assets
Trade and other
payables
Total Financial
Liabilities
0
0
0
0
1,340,895 2,616,719 694,563
72,809
0
0
0
0
0
0
0
0
1 to 5 Years
2013
$
0
2012
$
0
0
-
0
0
0
0
0
0
Non Interest
Bearing
2013
$
0
2012
$
0
Total
2013
$
2012
$
2,035,458 2,689,528
Weight Effective
Interest Rate
2013
2012
%
$
559
400
122,122
348,030
122,122
348,030
N/A
N/A
122,122
348,030 2,157,580 3,037,558
-254,604 -166,367 -254,604 -166,367
N/A
N/A
-254,604 -166,367 -254,604 -166,367
NOTE 18: OPERATING SEGMENTS
The company operates predominately in one segment involved in mineral exploration & development.
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 NIL (2012: 4,000,000) options and NIL (2011: 1,000,000) Share Performance Rights were issued.
Accordingly, an adjustment to the share based option reserve of NIL (2012:$155,442) was done in the current
reporting period (Refer Note 12). The fair value during financial year 2012 was determined as at Dec 2011 for by
an internal valuation using a Black-Scholes option pricing model or other appropriate methodology, using the
following assumptions:
1. Performance Shares: Production of DSO at 100,000 tonnes for FY2013, 400,000 tonnes for FY2014 & 130,000
tonnes for FY 2015.
2. Risk Free Rate: Depending on term - bonds over the period vary between 3.55 to 4.12%; have assumed 4% for
calculation purposes
3. Grant Date: 23/11/2011
4. Volatality: As the industry is subject to large variances and therefore industry standard is most relevant
5. Price at Grant: 0.12 per share.
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.
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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 2013
Expenses arising from share-based payment transactions
There were NIL (2012: $106,500) expenses arising from share-based payment transactions recognised during
the period. These expenses were recognised at the date the share based payments were approved and at the
share price applicable at that date.
NOTE 20: CHANGE IN ACCOUNTING POLICY
a) New Standards adopted
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have been
adopted by the company during the year.
AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other
Comprehensive Income (Applies annual reporting periods beginning on or after 1 July 2012).
AASB 2011-9 requires entities to group items presented in Other Comprehensive Income (OCI) on the basis of
whether they are potentially re-classifiable to profit or loss subsequently, and changes the title of ‘statement
of comprehensive income’ to ‘statement of profit or loss and other comprehensive income’ (title change is not
mandatory).
The adoption of the new and revised Australian Accounting Standards and Interpretations has had no
significant impact on the Company’s accounting policies, or the amounts reported during the current year. The
adoption of AASB 2011-9 has resulted in changes to the presentation of the Company’s financial statements.
b) New Accounting Standards for Application in Future Periods
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have
mandatory application dates for future reporting period, some of which are relevant to the Company. The
Company has decided not to early adopt any of the new and amended pronouncements. The Company’s
assessment of the new and amended pronouncements that are relevant to the Company but applicable in
future reporting periods is set out below:
•
AASB 9: Financial Instruments (December 2010) and AASB 2010-7: Amendments to Australian
Accounting Standards arising from AASB 9 (December 2010).
This standard is mandatorily applicable for annual reporting periods commencing on or after 1 January 2013.
However, AASB 2012-6 defers the application date of AASB 9 from 1 January 2013 to 1 January 2015. AASB 9
introduces new requirements for the classification and measurement of financial assets and liabilities.
Although the Directors anticipate that the adoption of AASB 9 and AASB 2010-7 may have an impact on the
Company’s financial statements, it is impracticable at this stage to provide a reasonable estimate of such
impact.
•
AASB 10: Consolidated Financial Statements, AASB 11: Joint Arrangements, AASB 12: Disclosure of
Interests in Other Entities, AASB 127: Separate Financial Statements (August 2011) and AASB 128:
Investments in Associates and Joint Ventures (August 2011) (as amended by AASB 2012-10:
Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments), and
AASB 2011-7: Amendments to Australian Accounting Standards.
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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 2013
AASB 10 provides a revised definition of “control” and additional application guidance so that a single control
model will apply to all investees. When adopted, this Standard is not expected to significantly impact the
Company’s financial statements.
AASB 11 requires joint arrangements to be classified as either “joint operations” (where the parties that have
joint control of the arrangement have rights to the assets and obligations for the liabilities) or “joint ventures”
(where the parties that have joint control of the arrangement have rights to the net assets of the
arrangement). When adopted, this Standard is not expected to significantly impact the Company’s financial
statements.
AASB 12 contains the disclosure requirements applicable to entities that hold an interest in a subsidiary, joint
venture, joint operation or associate. AASB 12 also introduces the concept of a “structured entity”, replacing
the “special purpose entity: concept currently used in Interpretation 112, and requires specific disclosures in
respect of any investments in unconsolidated structured entities. When adopted, this Standard will affect
disclosures only and therefore is not expected to significantly impact the Company’s financial statements.
•
AASB 13: Fair Value Measurement and AASB 2011-8: Amendments to Australian Accounting Standards
arising from AASB 2013 (applicable for annual reporting periods commencing on or after 1 January
2013).
AASB 13 establishes a single source of guidance for determining the fair value of assets and liabilities. AASB 13
does not change when an entity is required to use fair value, but rather, provides guidance on how to
determine fair value when fair value is required or permitted by other Standards.
These Standards are expected to result in more detailed fair value disclosures, but are not expected to
significantly impact the amounts recognised in these financial statements.
•
AASB 2011-4: Amendments to Australian Accounting Standards to Remove Individual Key Management
Personnel Disclosure Requirements (applicable for annual reporting periods beginning on or after 1
January 2013).
This Standard makes amendments to AASB 124 Related Party Disclosures to remove the individual key
management personnel (KMP) disclosure requirements by Australia specific paragraphs.
When adopted, these amendments are unlikely to have any significant impact on the financial statements.
•
AASB 119: Employee Benefits (September 2011) and AASB 2011-10: Amendments to Australian
Accounting Standards arising from AASB 119 (September 2011) (applicable for annual reporting periods
beginning on or after 1 January 2013).
This Standard introduces a number of changes to presentation and disclosure of a defined benefit plan. AASB
119 also includes changes to the criteria for determining when termination benefits should be recognised as
obligation.
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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 2013
The entity does not have any defined benefit plans. Therefore, these amendments will have no significant
impact on the entity.
•
AASB Interpretation 20: Stripping Costs in the Production Phase of Surface Mining (applicable for
annual reporting periods beginning on or after 1 January 2013).
This interpretation clarifies that costs of removing mine waste materials (overburden) to gain access to mineral
ore deposits during the production stage of a mine must be capitalized as inventories under AASB 102:
Inventories if the benefits from stripping activity is realised in the form of inventory produced.
The entity does not operate a surface mine. Therefore, there will be no impact on the financial statements
when this interpretation is first adopted.
•
AASB 2012-2: Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial
Assets and Financial Liabilities (application for annual reporting periods commencing on or after 1
January 2014).
This Standard amends the required disclosures in AASB 7 to include information that will enable users of an
entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights
of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the
entity’s statement of financial position.
When adopted, there will be no impact on the entity as the entity does not have any netting arrangements in
place.
•
AASB 2012-5: Amendments to Australian Accounting Standards arising from Annual Improvements
2009-2011 (applicable for annual reporting periods beginning on or after 1 January 2013).
These amendments are a consequence of the annual improvement process, which provides a vehicle for
making non-urgent but necessary amendments to Standards.
When these amendments are first adopted, this Standard is not expected to significantly impact the
Company’s financial statements.
NOTE 21: AFTER BALANCE SHEET DATE EVENTS
• On 17th July 2013, the Federal court set aside the approval for Nelson Bay River Project under EPBC
act.
• On 31ST July 2013, the Federal Environment Minister issued an approval for Nelson Bay River Project
under EPBC act.
• Recommencement of development works at Nelson Bay River Project from 12th August 2013 after
being suspended following injunction by Federal Court in May 2013.
• Advance of US$ 1,000,000 received from Frost Global under off take Contract agreement. The total
advance received as on date of this report is US$2 mn ($1mn on balance sheet date).
NOTE 22: COMPANY DETAILS
The registered office and principal place of business of the Company is:
Unit 4 , The Pines Business Centre
86 -88 Forrest Street
Cottesloe
WA 6011
Ph:
(08) 61612068 Fax: (08) 93855194
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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 27 to 52, 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 2013 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 2013,
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. 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 2013.
Dated at Unit 4, The Pines Business Centre, and 86 -88 Forrest Street, Cottesloe, WA 6011 this 23 rd day of
September 2013.
Signed in accordance with a resolution of the directors:
_______________________
Sanjay Loyalka
Director
Page 53
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10 Kings Park Road
West Perth WA 6005
PO Box 570
West Perth WA 6872
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Shree Minerals Limited
Report on the financial report
We have audited the accompanying financial report of Shree Minerals Limited (the
“Company”), which comprises the statement of financial position as at 30 June 2013, the
statement of profit or loss and other comprehensive income, statement of changes in equity
and statement of cash flows for the year then ended, notes comprising a summary of
significant accounting policies and other explanatory information and the directors’
declaration of the company .
Directors’ responsibility for the financial report
The Directors of the Company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001. The Directors’ responsibility also includes such internal control as
the Directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or
error. The Directors also state, in the notes to the financial report, in accordance with
Accounting Standard AASB 101 Presentation of Financial Statements, the financial
statements comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. Those standards
require us to comply with relevant ethical requirements relating to audit engagements and
plan and perform the audit to obtain reasonable assurance whether the financial report is
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation of the financial report that gives a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
Page 54
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reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.
Auditor’s opinion
In our opinion:
a
b
the financial report of Shree Minerals Limited is in accordance with the Corporations
Act 2001, including:
i
ii
giving a true and fair view of the Company’s financial position as at 30 June
2013 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001; and
the financial report also complies with International Financial Reporting Standards as
disclosed in the notes to the financial statements.
Report on the remuneration report
We have audited the remuneration report included in pages 16 to 19 of the directors’ report
for the year ended 30 June 2013. The Directors of the Company are responsible for the
preparation and presentation of the remuneration report in accordance with section 300A of
the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration
report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor’s opinion on the remuneration report
In our opinion, the remuneration report of Shree Minerals Limited for the year ended 30
June 2013, complies with section 300A of the Corporations Act 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
M J Hillgrove
Partner - Audit & Assurance
Perth, 23 September 2013
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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 17th September 2013.
SUBSTANTIAL SHAREHOLDERS
The company has received substantial shareholder notices from;
– Mr Sanjay Loyalka as trustee for the Loyalka Family Trust (24,500,000 ordinary shares)
– Gujarat NRE Resources NL (15,000,000 ordinary shares)
– Ullapool Investments Pty Ltd (6,000,000 ordinary shares)
– China Alliance International Holdings Group (18,000,000 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.
DISTRIBUTION SCHEDULE – SHAREHOLDINGS AS AT 17th SEPTEMBER 2013
Holdings Ranges
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-99,999,999,999
Totals
Holders
2
17
198
180
50
447
Total Units
7
65,321
1,947,811
6,806,793
87,127,568
95,947,500
%
0.000
0.068
2.030
7.094
90.808
100.000
UNMARKETABLE PARCELS
There are seven unmarketable parcels as at 17th September 2013 totalling 11,407 ordinary shares.
20 LARGEST SHAREHOLDERS AS AT 17th SEPTEMBER 2013
Holder Nam e
MR SANJAY KUMAR LOYALKA
CHINA ALLIANCE INTERNATIONAL HOLDINGS GROUP LIMITED
GUJARAT NRE RESOURCES NL
MEGAWILD ENTERPRISES PTY LTD
ULLAPOOL INVESTMENTS PTY LTD
ROSECLIFF HOLDINGS PTY LTD
CHINA ALLIANCE INTERNATIONAL HOLDINGS GROUP LIMITED
MR MICHAEL LEE ANGHIE & MRS SANDY MICHELLE ANGHIE
MR AMRIK SINGH HEER
EXPORT MARKETING (BVI) LTD
MRS RENU KUMAR & DR ASOK KUMAR
DR DEEPAK NARAN
IACG PTY LTD
MR SANJAY KUMAR LOYALKA
BRIAN EDWARD VON BERGHEIM PTY LTD
MS EMMA HALL
MR LINDSAY HAMILTON-SMITH & MRS ANDREA MARTINA HAMILTON-SMITH
TANDON SUPERANNUATION SERVICES PTY LTD
RANGEWELL PTY LTD
DEPAK DOLATHRAI NARAN
Balance at 17-09-2013 %
24,500,000
16,000,000
15,000,000
4,525,000
4,400,000
4,375,000
2,000,000
1,600,000
1,500,000
1,250,000
1,250,000
1,000,000
750,000
565,000
500,000
500,000
500,000
500,000
475,000
375,000
25.535
16.676
15.634
4.716
4.586
4.560
2.084
1.668
1.563
1.303
1.303
1.042
0.782
0.589
0.521
0.521
0.521
0.521
0.495
0.391
81,565,000
85.010
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