S H R E E M I N E R A L S L I M I T E D
ACN 130 618 683
2014 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
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
Corporate Governance Statement
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2
18
19
20
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55
56
58
59
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C O R P O R A T E D I R E C T O R Y
DIRECTORS
Sanjay Loyalka
Rajesh Bothra
Andy Lau
Amu Shah
COMPANY SECRETARY
Sanjay Loyalka
REGISTERED OFFICE
Unit 2
The Pines Business Centre
88 Forrest Street
Cottesloe
WA 6011
Ph:
Fax:
info@shreeminerals.com
www.shreeminerals.com
(08) 92861509
(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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D I R E C T O R S ’ R E P O R T
The Directors present this report together with the financial report of Shree Minerals Ltd (‘the Company’) for
the year ended 30th June 2014 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 Andy Lau
Mr Amu Shah
Mr Rajesh Bothra (appointed w.e.f. 27th June 2014)
Mr Mahendra Pal (retired w.e.f. 27th June 2014)
Mr Arun Jagatramka (retired w.e.f.28th November 2013)
COMPANY SECRETARY
Mr Sanjay Loyalka
PRINCIPAL ACTIVITIES
The principal activities of the Company during the financial year consisted of mineral exploration &
development and mining of Iron Ore.
During the financial year, the company obtained the required approvals and commenced mining of Iron Ore.
OPERATING RESULTS
Operating EBITDA before extra ordinary items for the year was $715,416 (2013: -$863,939). The net loss of the
Company after providing for income tax amounted to $1,391,141 (2013:$622,762) as following:
Operating EBITDA ( before non-cash and other items below)
715,416
-863,969
2014
2013
Impairment of Exploration Tenements ( due to relinquishment)
Impairment ( diminution) of Inventory carrying value ( at net
realisable value due to Iron Ore price movements)
Depreciation & Amortisation
Foreign exchange Gain/Loss
Income Tax benefit/expense
Loss after Tax
-900,615
-608,726
-1,244,502
212,014
435,272
0
0
-4,306
-47,419
292,932
-1,391,141
-622,762
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.
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D I R E C T O R S ’ R E P O R T
REVIEW OF OPERATIONS AND ACTIVITIES
Highlights
•
Statutory approvals received for Nelson Bay Iron Project (NBR) after a lengthy & protracted process
which pushed the commencement of NBR project to the bottom of the Iron Ore Price Cycle.
Production of DSO Iron Ore commenced at NBR project
•
• DSO Reserves updated for the first two years of DSO mining at the NBR Project
•
•
Share Placement to raise $ 4.13 mn
Following sharp falls in Iron Ore prices during last quarter of the financial year, NBR project
operations suspended & put on care & maintenance.
Steps have been taken to conserve cash resources.
•
• Non Renounceable Rights issue completed after Balance Sheet date to raise $1.623 mn.
Nelson Bay River Iron Ore Project
Project Development
Your company has made significant progress during the financial year which has been witness to the
Company’s journey from explorer to an iron ore producer.
Shree Minerals is proud to be the first company to conceptualise Direct Shipping Iron Ore (DSO) in Tasmania –
there was no known information from Tasmania or anywhere else on the metallurgical characteristics of the
NBR type DSO products - this has been a trend-setter and already other iron ore investments have followed
this lead. Nelson Bay River Iron (“NBR”) Project also has the proud distinction of being the first Greenfield mine
in North West Tasmania in many years.
The development of Nelson Bay River (NBR) iron ore required careful planning and execution of the drilling
and metallurgical testing phase. The geology of the iron ore deposits at Nelson Bay River is unique and
requisite work was completed to develop the material into commercial grade iron ore for downstream
processing in the steel industry.
Development of the project involves three stages. The first stage is to develop a relatively shallow open cut
mine to produce direct shipping grade ore. This direct shipping ore (DSO) only requires crushing and screening
to produce the DSO products.
Stage two involves the continuation of mining of the DSO to the north. Here the DSO is composed of lower
grade material, which is considered to have the potential to produce a commercial product by beneficiation
(BFO). During the year, DSO stage 1 was implemented & work also continued for the next stage being BFO
phase to develop new knowledge in the form of developing an optimal process flow sheet.
Stage three of the project involves the open cut mining of the deep magnetite orebody beneath the DSO
resource cap. This magnetite ore will require processing to produce saleable magnetite products. Earlier
studies demonstrated that the magnetite ore could produce two products, a dense media magnetite (DMM)
product, suitable for coal washery applications, or a blast furnace pellet (BFP) magnetite product. Suppliers are
few in number for the higher value DMM product and mining generally occurs on a small scale. This would suit
the Nelson Bay Iron Project. Studies to-date have reflected a stable market and pricing for DMM as an
industrial mineral in Eastern Seaboard of Australia with domestic production not being adequate to meet
demand resorting to imports , thereby confirming the long-term value potential of the NBR project.
The company is also proud to achieve development timelines & competitive costs at benchmark levels.
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D I R E C T O R S ’ R E P O R T
Approvals
Having taken a leadership role in mine project development in the area, the company found itself caught in a
quagmire of misinformation, negativity and legal process brought on by minority activist groups.
NBR became a test case for developing mining in the region and as a consequence has:
•
the unenviable distinction of being subject to separate Commonwealth and State environmental
assessment processes which normally the Commonwealth would have relied on the State
environmental assessment process under bilateral arrangements; and
• undergone a very rigorous and long drawn out assessment process by both regimes
The company had submitted its application for statutory approvals in February 2011. Following a very lengthy
& protracted approvals & appeals process, during the financial year, the Company finally received requisite
approvals for the NBR Project.
The Company received Commonwealth Government Approval under the EPBC Act for the NBR Project in
August 2013 after the earlier approval decision made on 18th December 2012 by the Federal Environment
Minister to approve the NBR project under the Environment Protection and Biodiversity Conservation Act was
set aside by the Federal Court as a consequence of an application for a judicial review in April 2013. The 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.
The company had previously in 2012, received State Government approvals including a Mining Lease and a
Development Permit, including the Tasmanian EPA’s environmental approvals. There was an appeal against
the State planning and environmental permit, which was dismissed by the Tasmanian Resource Management
and Planning Appeal Tribunal.
The decision came after an extensive and comprehensive assessment process to confirm that the mine would
proceed in accordance with best practice environmental management. The company engaged the services of
renowned experts to assess impacts plan & implement measures for conservation including compliance with
all approval conditions in this regard.
Development & Production
The company has achieved the project development from exploration to production at attractive capital costs.
During the year installation of requisite infrastructure & all necessary contractual arrangements to produce
DSO Iron Ore (Direct Ship Iron Ore) & transportation of the product for storage & loading at port were
completed. Ore production commenced in November 2013. Iron Ore sales commenced in January 2014 with
the first ship M/V "LIVANITA” for 42,083 tonnes from Burnie Port, departed 28th January 2014. The mining &
production figures are as per Table 1.
Table 1
Waste Stripping
BCM
Year ending
30/06/2014
636,347
Year ending
30/06/2013
0
Ore Mining
Tonnes
224,571
Ore Crushing & screening
Tonnes
153,332
Sales
Tonnes
130,899
0
0
0
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D I R E C T O R S ’ R E P O R T
(cid:1) As initial operations commenced, Iron ore grades gradually ramped towards forecast levels. The iron
ore fines grades were lower compared to Lump Product. The production is now approx 50% Iron Ore
Lumps for which the premium has been set linked to published spot indices.
(cid:1) Transportation to port during the year has been slower than forecast levels. Steps have been taken
towards improvement.
(cid:1) The mine schedule was adjusted appropriately to reduce total material mined prior to the suspension
of operations in mid June 2014. Consequently, significantly lower waste quantities were mined during
the quarter April to June 2014. Crushing was also lower during this period to adjust to transport
rates.
(cid:1) As iron ore prices continued to fall sharply during the quarter, the operations have been suspended
since mid-June 2014 and put on care & maintenance.
(cid:1) Steps taken to preserve cash resources & optimise costs including :
o The company has relinquished some early stage exploration tenements as detailed in this
report.
o Release of staff.
Care & Maintenance
The company notes with regret the impact of the inordinate delayed approvals (as a consequent of negativity
by minority activist groups) moving the project start-up into the bottom of the commodity price cycle , the
project has had to be suspended within 6 months of start up & put under care & maintenance.
As the NBR project has been planned for a phased development , a normal approval time frame would have
had the project well placed to execute the DSO phase of the project at the right point in the cycle which would
underwrite the capital for the magnetite phase to produce dense media magnetite (DMM) used for the coal
washery industry .
North-west of Tasmania is being held back by environmental NGOs. New mining ventures are facing extreme
difficulty though this region covers much of the Mount Read Volcanic Belt, one of the richest mineral zones in
the world. This zone is recognised by Tasmanian legislation through the Mining (Strategic Prospectivity Zones)
Act 1993, an act to protect and foster the exploration and development of mineral wealth. The footprint of the
NBR project is only about 0.03% of the region which has been unsuccessfully nominated for listing by this
group.
Unable to win their arguments on merits & facts, these environmental NGO’s have simply side-stepped science
and use political agitation & negative propaganda through media to frustrate mining projects. These minority
groups are also not respecting the will of the community as we are informed that almost 95% of the
community are supportive of the project. The activists probably want publicity by running a scare campaign to
further their own cause.
All allegations by them are purely mischievous and misleading. We have deliberately adopted a policy that we
can’t and will not engage in any kind of media war which will encourage such tactics.
Amidst all this, the Company is committed to high standards of business practices and optimisation of
resources. With modern mining practices and right mind set for 21st century commodity market, we see our
company achieve its goal for all the share holders and North-West Tasmanians.
The company acted proactively early in April to adjust mine plan as the Iron Ore price cycle was beginning to
wind down which enabled a quick reaction time in June for timely suspension when the price plunged . The
project has been developed with a philosophy of being lean & efficient & consequently nimble footed. Further
steps have been taken to conserve the resources as well as reduce cash costs while having the necessary
preparedness to respond to improving price cycle when it emanates. The company believes the long term
demand for the commodity remains robust due to growing urbanisation of the global population particularly in
China. A detailed care & maintenance plan has been developed in consultation with the environment
regulators & processes implemented including ongoing biological monitoring, camera monitoring etc.
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D I R E C T O R S ’ R E P O R T
Resource & Reserves
During the financial year, the Company published the updated DSO South Pit Reserves for its Nelson Bay River
(NBR) Iron Project. The new reserves are based on the recent drilling programme completed after the 24th
October 2012 Reserve Statement. The aim of the drilling was to upgrade the resource and revise the Mine Plan
for the first two of years of DSO operations.
The new Mineral Resource estimates for the DSO South Pit reflect an increase to 0.87Mt compared to the
earlier Mineral Resource estimate of 0.7Mt. The Reserves Estimates for DSO South Pit similarly increases to
0.65Mt compared to the earlier reserve of 0.33Mt.
The Ore Reserve Estimate was completed by the Minserve Group Pty Ltd in accordance with the 2012 JORC
Code guidelines based on the Mineral Resource Estimate completed by Simon Tear of H&S Consultants Pty Ltd
(HSC). Under the JORC Code, only Measured and Indicated Mineral Resources can be considered for
conversion to Ore Reserves after consideration of “Modifying Factors” including mining, processing, economic,
environmental, social, and government factors. The Ore Reserve Statement applies solely to the resource
estimates in the Measured and Indicated categories.
Mineral Resource Estimates, summarised by JORC classification are as following:
Category
Measured
Indicated
Inferred
Total
Category
Inferred
Total
DSO Resource Estimates 2013
Tonnes
Fe %
390,000
260,000
220,000
57.8
57.7
57.4
Al2O3 %
1.4
1.5
1.4
P ppm
S ppm
911
926
936
348
359
401
SiO2 %
8.7
8.8
9.3
870,000
8.9
(Nominal 54% Fe cut off; average density 3t/m3; minor rounding errors)
57.7
922
365
1.4
BFO Resource Estimates 2012
Tonnes
730,000
730,000
(30% Fe cut off; average density 3t/m3; minor rounding errors)
Al2O3 %
2.7
2.2
P ppm
180
180
S ppm
680
680
Fe %
46.8
46.8
SiO2 %
23.7
23.7
LOI %
6.5
6.5
6.4
6.5
LOI %
4.7
4.7
Skarn Dyke Global Iron Resource Estimates
(Includes Magnetite Resource)
Category
Indicated
Inferred
Total
M Tonnes
1.8
9.5
11.3
Iron %
38.6
35.9
36.3
(30% Fe cut off; fresh rock material; minor rounding errors)
Skarn Dyke Recoverable Magnetite Resource Estimates
Category
Indicated
Inferred
Total
M Tonnes
1.7
6.1
7.8
DTR Mag % Magnetite Kt
38.5
38.2
38.3
667
2,324
2,991
(20% DTR cut off; average density 3.71t/m3; fresh rock material; minor rounding errors)
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D I R E C T O R S ’ R E P O R T
Magnetite Resource Estimate Concentrate Grades
Category
Indicated
Inferred
Total
Fe %
66.4
64.3
65.5
Al2O3 %
0.16
0.31
0.22
S %
0.21
0.42
0.30
SiO2 %
4.6
6.0
5.2
DSO Ore Reserve Estimate for the Southern DSO pit, summarised by JORC classification are as following:
DSO Ore Reserve Estimate by JORC Classification
Category
Proved
Probable
Total
M
tonnes
0.39
0.26
0.65
Iron
%
56.7
56.7
56.7
Alumina
%
1.4
1.5
1.4
Phos
%
0.091
0.092
0.091
Sulphur
%
0.035
0.036
0.035
Silica
%
8.7
8.8
8.7
LOI
%
6.5
6.5
6.5
(Minor rounding errors)
Mine Plan
The NBR project is being developed in a phased philosophy with the initial plan to mine the DSO resource to
export Iron Ore over the first couple of years at low capital expenditure to be followed by the magnetite
resource to produce Dense Media Magnetite (DMM) used for Coal Washery.
Studies to-date have reflected a stable market & pricing for DMM as an industrial mineral in Eastern Seaboard
of Australia with domestic production not being adequate to meet demand resorting to imports , thereby
conforming the long-term value potential of the NBR project.
Mine Plan for DSO Iron Ore
The company has always worked with both of the approving bodies the Tasmanian EPA and the Federal
Government’s Environment Department to ensure that it complies with the conditions of the separate
approvals. We are in regular contact with both entities to ensure that we meet the most exacting standards
set in the approvals.
The updated production schedule for the first two years of production is sourced initially solely from the DSO
South Pit. The DSO ore mined only requires crushing and screening to produce a marketable product that
requires no further beneficiation. Two separate DSO pits are planned for the first two years of mining the DSO
South Pit followed by the DSO North Pit where the latter is contained within the BFO resource to its north.
The updated mine plan and production schedule mines a total of 0.914 Mt of DSO.
Mine Plans & Management plans are updated periodically to update mine plan estimates & modelling
progressively & appropriate approvals taken thereof. Further drilling and modelling in 2013, subsequent to the
original DPEMP (Development Proposal & Environment Management Plan) & EIS (Environment Impact
Statement) submitted for public display in 2011 has provided a better understanding of the DSO resource,
which is now known to be larger than originally thought. This will support a larger and deeper DSO pit, which
in turn has increased the overall ore & waste volumes to be excavated. Further , the modelling in 2013 also
took a precautionary measure to minimise risk of potential acid forming waste rock ( PAF) segregation from
other non acid forming waste rock (NAF) by including areas which are only partially mineralised with pyrite but
represent all the potential PAF material.
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D I R E C T O R S ’ R E P O R T
These two factors (increased mining quantities and precautionary modelling of increased proportion of PAF
waste) combined result in following:
Estimates
Mine Life ( years)
2011
2013
Change (%)
10
10.7
7%
Total Ore Mining
(tonnes)
3,836,079
Total Waste Rock
Mining (M3)
11,673,545
Total PAF Waste
Rock Mining (M3)
1,675,679
4,111,101
12,796,725
1,891,950
7%
10%
13%
Share Placement
During the financial year, Share Placement was made to raise $4.13 mn. Non Renounceable Rights issue
completed after Balance Sheet date to raise $ 1.623 mn.
Tenements
The mining tenements held at the end of the reporting period and their locations are as following :
Mine Lease/
Exploration License
3M/2011
EL41/2004
EL42/2008
Locality
Remarks
Nelson Bay
River
Nelson Bay
River
Mt.Sorell
100% Shree Minerals Ltd
100% Shree Minerals Ltd
100% Shree Minerals Ltd
•
The mining tenements acquired and disposed of during the period and their location.
During the financial year, following tenements were surrendered at the completion of their term to preserve
cash resources. Accordingly, the asset values were written off in the financials with an impairment charge of
$900,615.
Exploration License
EL42/2004
EL43/2004
EL54/2008
Locality
Remarks
Mt.Bertha
Sulphide
Creek
Rebecca
Creek
75% Shree Minerals Ltd as a Farm in JV
with IACG Pty Ltd
100% Shree Minerals Ltd
100% Shree Minerals Ltd
•
•
The beneficial percentage interests held in farm-in or farm-out agreements at the end of the period.
NIL
The beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during
the period.
NIL
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D I R E C T O R S ’ R E P O R T
EXPLORATION
Exploration on EL42/2008 (Mt Sorell) by Shree Minerals Ltd. during the year 2013-14 further refined the
positive vectors to VHMS base metal mineralisation identified during 2012. Re-interpretation of new field data,
combined with revision of the 2012 work, suggests there is wrench fault stacking of an inferred VHMS horizon,
centred around a mafic volcanic and hydrothermal fluid focus in the Clark Valley grid’s centre. Potential for
folded repeat of the inferred VHMS host horizon to the west was also identified.
Highly encouraging was the return of a 0.6g/t Au composite rock chip sample from north of an inferred mafic
volcanic centre. This weakly oxidised and siliceous felsic volcanic lastic siltstone also contained appreciable
Zn (1570ppm), Pb (259ppm), Ag (5.8ppm) and Ba (2170ppm), suggesting the metals are likely Volcanic Hosted
Massive Sulphide (VHMS) related; possibly a proximal exhalite deposit.
Field work during early 2014 aimed to better define and extend known Zn, Pb and Cu soil anomalism. The base
metal anomalous zone was extended northwards and whilst no strong anomalies were located, the zone
remains open. Work undertaken comprised gridding, soil sampling, ground magnetics, geological mapping and
rock chip sampling on the Clark Valley grid. Grid cutting was required to re-open ~8600m of the existing grid
and access track to facilitate the field work, as well as planned future geophysical surveys to generate more
focused drill targets. Soil sampling was completed on three consecutive lines to the north (6600 to 6800N) of
the work undertaken in 2012 and also on one infill line (6200N).
The ground magnetic survey covered an aeromagnetic anomaly, identified by the WTRMP (Western
Tasmanian Regional Minerals Program), which defines the rough inferred distribution of mafic volcanics in the
Clark Valley. The survey aimed to provide a higher resolution insight into structure and mafic volcanic
distribution to aid VHMS targeting. Magnetic susceptibility determinations were recorded for all rock chip
samples. The ground magnetic survey identified a magnetic high zone coincident with the high Ti/Zr
interpreted mafic volcanic intrusive centre, as well as demonstrating a number of narrow discrete highs that
are continuous between grid lines and interpreted to result from thin basalt lava flows.
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
The NBR project is being developed in a phased philosophy with the initial plan to mine the DSO resource to
export iron ore over the first couple of years at low capital expenditure to be followed by the magnetite
resource to produce dense media magnetite (DMM) used for the coal washery industry. Studies to-date have
reflected a stable market and pricing for DMM as an industrial mineral in Eastern Seaboard of Australia with
domestic production not being adequate to meet demand resorting to imports, thereby confirming the long-
term value potential of the NBR project. It is planned to do drilling & test work program to define the BFO
stage (being the intermediate stage between DSO & DMM) besides extending the DSO phase.
Exploration activities are also planned at Mt. Sorell exploration license involving geological mapping, soil
sampling, geophysical surveys to define potential drilling targets.
With the NBR DSO project operational, we believe that Shree Minerals is now at an inflection point and should
actively pursue its objective to create shareholder wealth by growing the company by acquisition of additional
prospective mineral tenements in Australia and overseas. The company is actively looking for suitable
opportunities.
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D I R E C T O R S ’ R E P O R T
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 other than those disclosed in this report.
FINANCIAL POSITION
The net assets of the Company are $ 10,705,422 (2013: $8,183,104)
The Directors believe the Company is in a financial position to pursue its current operations.
AFTER BALANCE DATE EVENTS
• A non-renounceable entitlement issue of 1 Share for every 6 Shares held by those Shareholders
registered at the Record Date at an issue price of $0.08 per Share for 20,293,334 new shares to raise
$1,623,467 was announced & completed
•
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.
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 & mining licences to regulate its 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 activities. As far as the Directors are aware, there has been no known breach
of the Company’s licence conditions and all activities comply with relevant environmental regulations. The
implementation of best practice social and environmental practices, well beyond simple compliance, has been
an integral part of Company's philosophy. The company in discussions with the regulatory authorities is also
looking at innovative work towards implementing / developing best environment management practices. The
company has also voluntarily committed to research to enhance the understanding of orchid biology in north-
western Tasmania, as a best practice environmental management contribution to orchid science. The research
will assist with the ongoing management and protection of threatened orchid species in north-western
Tasmania. Shree Minerals also recognises the opportunities that the presence of our project creates to support
Devil Facial Tumour research. Hence, Devil numbers around the mine site are monitored as part of the mine’s
operational monitoring of the effectiveness of its devil (and quoll) impact mitigation measures, and these
observations will be valuable data for the Save the Tasmanian Devil Program (STDP).
DIRECTORS’ INTERESTS
Mr S Loyalka
Mr A Lau
Mr A Shah
Mr R Bothra
Total
ORDINARY SHARES
FULLY PAID
26,474,078
0
4,884,230
30,437,500
61,795,808
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0
0
0
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D I R E C T O R S ’ R E P O R T
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 Mount 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 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.
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.
Mr Rajesh Bothra, Non Executive Director
Mr. Rajesh Bothra is based in Singapore & is a share-holder and Managing Director of major electronic and
consumer electronic company with revenue of US$1 Billion. He has rich experience of management and
leadership skills. He also has interests in real Estate, hospitality, natural resources and media Industry. Mr
Rajesh Bothra brings with him a wealth of international experience & networks.
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.
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D I R E C T O R S ’ R E P O R T
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;
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
Page 12
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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. Currently, there is
no such plan under practice for last 5 years.
Details of remuneration
Key Management Personnel (KMP) comprise the executive and non- executive directors only during FY2014.
The remuneration for Key Management Personnel of the Company during the year and the previous year was
as follows:
Short-term Employee Benefits
Post-employment Benefits
2014
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
292,906
Mr A Jagatramka
2,860
Mr M Pal
27,460
Mr Andy Lau
30,000
Mr Amu Shah
27,460
Mr Rajesh Bothra
0
380,686
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
27,094
0
0
0
0
0
264
2,540
0
2,540
0
0
32,438
0
0
0
0
0
0
0
0
0
0
0
0
0
320,000
3,124
30,000
30,000
30,000
0
0
413,124
0
0
0
0
0
0
0
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D I R E C T O R S ’ R E P O R T
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
Total
%
Performance
Based
Mr S Loyalka
183,486
Mr A Jagatramka
16,055
Mr M Pal
40,138
Mr Andy Lau
17,500
Mr Amu Shah
16,055
273,234
0
0
0
0
0
0
0
0
0
0
0
0
0
16,514
0
0
0
0
1,445
3,612
0
1,445
0
23,016
0
0
0
0
0
0
0
0
0
0
0
0
200,000
17,500
43,750
17,500
17,500
296,250
0
0
0
0
0
0
NB: For financial years ended June 2013 & 2014 the KMPs held the positions and dates of change in
responsibilities as following:
Mr. S Loyalka: Executive Chairman with added responsibility of CEO, CFO & Company Secretary
Mr. A Jagatramka: Non Executive Director, Retired 28/11/2013
Mr. M Pal: Non Executive Director, Retired 27/6/2014
Mr. Andy Lau: Non Executive Director
Mr. Amu Shah: Non Executive Director
Mr. Rajesh Bothra: Non Executive Director, appointed 27/6/2014
Options, Performance shares & Shares issued as part of remuneration for the period ended
30 June 2014
There were no Options, Performance shares & Shares issued as part of remuneration for the period ended 30
June 2014. Please refer to Note 19 for further information.
Shares Issued on Exercise of Compensation Options
No options granted as compensation in prior periods were exercised through the period or the previous
period.
Number of Shares Held by Key Management Personnel
30 June 2014
Key Management Person
Balance
1 July 2013
Received as
Compensation
Options
Exercised
Net Change
Other
Balance on
Resignation
Balance
30 June 2014
Mr Sanjay Loyalka
Mr Mahendra Pal
25,915,000
300,000
Mr Arun Jagatramka
15,222,500
Mr Andy Lau
Mr Amu Shah
Mr Rajesh Bothra
0
4,525,000
0
45,962,500
0
0
0
0
0
0
0
0
0
-15,000,000
0
0
17,937,500
2,937,500
0
0
0
0
0
0
0
25,915,000
300,000
222,500
-
4,525,000
17,937,500
48,900,000
0
0
0
0
0
0
0
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D I R E C T O R S ’ R E P O R T
Note: On 9/9/2014, holdings (direct & indirect) of following directors increased as participation as
underwriters in Rights Issue:
Updated Balance on 09/09/2014
1. Mr.Sanjay Loyalka 26,474,078
2. Mr. Amu Shah 4,884,230
3. Mr. Rajesh Bothra 30,437,500
Number of Options Held by Key Management Personnel
30 June 2014
Key Management
Person
Balance
30 June
2013
Granted as
compensation
Options
Exercised
Net
Change
Other
Balance
30 June 2014
Total
Vested
30 June
2014
Total
Exercisable
30 June
2014
Total
Unexercisable
30 June 2014
Mr Sanjay
Loyalka
Mr Mahendra Pal
Mr Arun
Jagatramka
Mr Amu Shah
Mr Andy Lau
Mr Rajesh Bothra
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Number of Share Performance Rights (SPR) held by any Key Management Personnel
On 30 June 2014, Mr.Mahendra Pal held 1,000,000 share performance rights. The Performance Rights vest
in three tranches to Mr Mahendra Pal on 31 October 2013, 31 October 2014 and 31 October 2015
respectively. The number of Performance Rights to be vested on each of those dates is one (1)
Performance Right for every one (1) tonne of DSO Iron Ore sold over the three years ending on 30 June
2013, 30 June 2014 and 30 June 2015 respectively, subject to issue of maximum of 1,000,000 Performance
Rights in aggregate. For the year ended 30 June 2013 there was nil tonnes of DSO Iron Ore sold. For the
year ended 30 June 2014 there was 130,889 tonne of DSO Iron Ore sold. Consequently, 130,889
Performance Rights will vest on 31 October 2014. No other Key Management Personnel held any share
performance rights on 30 June 2014.
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. Mr. Loyalka’s current employment arrangements cover five-year tenure that commenced
in May 2013.
Mr.Mahendra Pal was an independent Non Executive Director of the company till 27/06/2014. During the
financial year 2013-14, he was paid a cash remuneration of $30,000. He additionally agreed to support the
Geological functions of the company as a consultant. Accordingly, he was additionally paid $ 31,500 by way of
consulting fees.
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D I R E C T O R S ’ R E P O R T
Mr. Amu Shah is a Non Executive Director of the company. During the financial year 2013-14, he was paid a
cash remuneration of $30,000.
Mr. Arun Jagatramka was a Non Executive Director of the company till 28/11/2013. During the financial year
2013-14, he was paid a cash remuneration of $3,124.
Mr. Andy Lau is a Non Executive Director of the company. During the financial year 2013-14, he was paid a
cash remuneration of $30,000 by way of consulting fees.
Mr. Rajesh Bothra is a Non Executive Director of the company effective 27/06/2014. During the financial year
2013-14, he was paid a cash remuneration of NIL.
END OF REMUNERATION REPORT
Meetings of Directors
During the financial year, 7 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
Rajesh Bothra
Board Meetings
Meetings
attended
7
1
5
5
6
0
Meetings held
whilst in office
7
3
7
7
7
0
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.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring any proceedings on behalf of the Company or intervene in
any 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 is 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
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D I R E C T O R S ’ R E P O R T
•
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 $10,750 (2013: 3,415) for Taxation services (compliance and consulting) being the non-audit services
that were paid/payable to related practices of the external auditors during the year.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2014 has been received and can be
found on page 18 of annual report.
Signed in accordance with a resolution of the Board of Directors.
Sanjay Loyalka
Chairman
Signed in Perth the 26th day of September 2014.
The information in this report that relates to Ore Reserve Estimates is based on information evaluated by Mr
Alwyn Hyde-Pager who is a Fellow of The Australasian Institute of Mining and Metallurgy (FAusIMM) and a
Registered Professional Engineer of Queensland (RPEQ) and who has sufficient experience relevant to the style
of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Hyde-Page is a Member of The Minserve
Group Pty Ltd and consents to the inclusion in the report of the matters based on his information in the form
and context in which it appears.
The data in this report that relates to Exploration Results and Mineral Resource Estimates is based on
information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and
Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd and he consents to the
inclusion in the report of the Mineral Resource in the form and context in which they appear.
Page 17
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Level 1
10 Kings Park Road
West Perth WA 6005
Correspondence to:
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
Auditor’s Independence Declaration
To the Directors of Shree Minerals Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of Shree Minerals Limited for the year ended 30 June 2014, 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, 26 September 2014
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 18
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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 2014
Revenue from continuing operations
Iron ore sales
Interest
Expenses from continuing operations
Cost of sales
Finance charges
Foreign exchange gain / loss
Impairment of exploration tenements
Other expenses
Administration 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
4
5
30-Jun-14
30-Jun-13
$
8,625,723
60,659
-9,452,969
-80,879
212,014
-900,615
-79,832
-210,513
-1,826,413
435,272
-1,391,141
0
-1,391,141
$
0
103,537
0
-104,540
-47419
0
-127,268
-740,004
-915,694
292,932
-622,762
0
-622,762
-1.29
-0.65
The accompanying notes form part of these financial statements.
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S H R E E M I N E R A L S L T D
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2014
Assets
Current Assets
Cash and cash equivalents
Receivables
Inventory
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
Rehabilitation Provision
Loans
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Retained profits (losses)
Total Equity
Note
30-Jun-14
$
30-Jun-13
$
6
7A
7B
9
9A
6A
8
10
10
10
10A
11
12
12
2,183,998
560,270
2,068,822
4,813,090
263,640
10,036,165
943,387
354,880
11,598,072
16,411,163
-4,136,102
-20,480
-26,107
-4,182,689
-1,499,300
-23,752
-1,523,052
-5,705,741
1,233,606
122,122
0
1,355,728
1,031,779
6,172,939
801,852
151,469
8,158,039
9,513,767
-1,279,424
-12,876
-18,694
-1,310,994
0
-19,668
-19,668
-1,330,663
10,705,422
8,183,104
13,591,891
284,588
-3,171,057
10,705,422
9,678,432
284,588
-1,779,916
8,183,104
The accompanying notes form part of these financial statements.
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S H R E E M I N E R A L S L T D
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2014
Note
Issued
Capital
$
Retained
Losses
$
Share based
option reserve
$
Total
$
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
284,588
8,183,104
BALANCE AT 1 JULY 2013
9,678,432
-1,779,916
284,588
8,183,104
Total comprehensive income for the period
0
-1,391,141
Shares issued during the year
11
4,130,000
Capital raising costs
-216,541
0
0
0
0
0
-1,391,141
4,130,000
-216,541
BALANCE AT 30 JUNE 2014
13,591,891
-3,171,057
284,588
10,705,422
The accompanying notes form part of these financial statements.
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S H R E E M I N E R A L S L T D
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2014
Cash flows from operating activities (including exploration)
Sales receipts
Payments to suppliers and employees (inclusive of GST)
Interest received
Research and Development tax concession
Other Income
Note
30-Jun-14
30-Jun-13
$
$
8,642,532
-8,722,083
45,194
435,272
0
-2,265,709
128,832
559,633
0
Net cash inflow from operating activities (including exploration)
15(b)
400,915
-1,577,244
Cash flows from investing activities
Payment for plant and equipment
Payment for mineral exploration
Deferred Mine Waste
Payment for mine development
Net cash outflow from investing activities
Cash flows from financing activities
Proceeds from issues of shares and other equity securities
Payments for share issue costs
Borrowings
Net cash inflow from financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial period
-251,024
-156,270
-1,077,831
-2,626,978
-4,112,103
4,130,000
-216,541
889,657
4,803,116
1,091,927
2,035,457
-152,475
0
0
0
-152,475
0
0
1,075,648
1,075,648
-654,071
2,689,528
Cash and cash equivalents at the end of the financial period
3,127,385
2,035,457
Cash and cash equivalents at the end of the financial period
Cash at bank & in hand
Security deposits
6
6A
2,183,998
943,387
1,233,606
801,852
Cash and cash equivalents at the end of the financial period
3,127,385
2,035,457
The accompanying notes form part of these financial statements.
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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 2014
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”). Shree Minerals Limited is a for-profit entity for the purpose of
preparing the financial statements.
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 2014 and comparative information.
New and revised standards that are effective for these financial statements
A number of new and revised standards are effective for annual periods beginning on or after 1 July 2013.
Information on these new standards is presented below.
AASB 11 Joint Arrangements
AASB 11 supersedes AASB 131 Interests in Joint Ventures (AAS 131) and AASB Interpretation 113 Jointly
Controlled Entities- Non-Monetary-Contributions by Venturers. AASB 11 revises the categories of joint
arrangement, and the criteria for classification into the categories, with the objective of more closely aligning
the accounting with the investor’s rights and obligations relating to the arrangement. In addition, AASB 131’s
option of using proportionate consolidation for arrangements classified as jointly controlled entities under that
Standard has been eliminated. AASB 11 now requires the use of the equity method for arrangements classified
as joint ventures (as for investments in associates).
AASB 12 Disclosure of interest in Other Entities
AASB 12 integrates and makes consistent the disclosure requirements for various types of investments,
including unconsolidated structured entities. It introduces new disclosure requirements about the risks to
which an entity is exposed from its involvement with structured entities.
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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 2014
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.
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 received.
b. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost 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 profit or loss
statement during the financial period in which they are incurred.
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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 2014
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.
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 and evaluation costs
Exploration and evaluation 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 the
successful development of the area or where activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable resources.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in
which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are transferred to Mine
Properties and amortised over the life of the area according to the rate of depletion of the economically
recoverable resources (refer to Mine Properties below).
A regular review for impairment is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of
the mining permits. Such costs have been determined using estimates of future costs, current legal
requirements and technology on a discounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
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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 2014
d. Mine Development
Mine development represent the accumulation of all exploration, evaluation and development expenditure
incurred in respect of areas of interest in which mining has commenced or in the process of commencing.
When further development expenditure is incurred in respect of mine property after the commencement of
production, such expenditure is carried forward as part of the mine property only when substantial future
economic benefits are thereby established, otherwise such expenditure is classified as part of the cost of
production.
Amortisation is provided on a unit of production basis (other than restoration and rehabilitation expenditure
detailed below) which results in a write off of the cost proportional to the depletion of the proven and
probable mineral reserves.
The company defers waste stripping costs for matching costs with the related economic benefits. Stripping
costs incurred in the period are deferred to the extent that the current period ratio exceeds the life of mine or
pit ratio. Such deferred costs are then charged in subsequent periods, the ratio falls short of the life of mine or
pit ratio. The life of mine or pit ratio is obtained by dividing the volume of waste mined either by the volume of
ore mined. The life of mine or pit waste-to-ore ratio is a function of an individual mine's pit design and
therefore changes to that design will generally result in changes to the ratio. Changes to the life of mine or pit
ratio are accounted for prospectively. Deferred stripping costs are included in Mine development costs.
The net carrying value of each area of interest is reviewed regularly and to the extent to which this value
exceeds its recoverable amount, the excess is either fully provided against or written off in the financial year in
which this is determined.
The Group provides for environmental restoration and rehabilitation at site which includes any costs to
dismantle and remove certain items of plant and equipment. The cost of an item includes the initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation
for which an entity incurs when an item is acquired or as a consequence of having used the item during that
period. This asset is depreciated on the basis of the current estimate of the useful life of the asset.
In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets an entity is also required
to recognise as a provision the best estimate of the present value of expenditure required to settle the
obligation. The present value of estimated future cash flows is measured using a current market discount rate.
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.
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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 2014
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
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.
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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 2014
(v) Financial Liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised
cost using the effective interest rate method.
Derivative instruments
Derivative instruments are measured at fair value. Gains and losses arising from changes in fair value are taken
to the income statement unless they are designated as hedges.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are
applied to determine the fair value for all unlisted securities, including recent arm’s length transactions,
reference to similar instruments and option pricing models.
Impairment
At each reporting date, the group assess whether there is objective evidence that a financial instrument has
been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the
instrument is considered to determine whether 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 Operations
h.
The Company’s share of the assets, liabilities, revenue and expenses of joint 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.
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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 2014
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.
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 3 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).
The following criteria are also applicable to other specific revenue transactions:
Iron Ore Sales
Contract terms for the Company’s sale of Iron Ore allow for a price adjustment based on final assay results of
the ore for Fe content & other trace elements at the discharge port to determine the final content.
Recognition of sales revenue for these commodities is based on the most recently determined estimate of Fe
content & other trace elements (based on load port assay results) and the spot price at the date of shipment,
with a subsequent adjustment made upon final determination.
The terms of Iron Ore sales contracts contain provisional pricing arrangements whereby the selling price for
Iron Ore is based on prevailing spot prices on a specified period around the date of shipment to the customer
(the “quotation period”). Adjustments to the sales price occur based on movements in quoted market prices
up to the date of final settlement. The period between provisional invoicing and final settlement can be about
a month.
m. Inventories
Crushed Ore at site & port and run of mine ore stockpiles are physically measured or estimated and valued at
the lower of cost or net realisable value. Net realisable value is the estimated selling price (in the ordinary
course of business assuming sales are made at the end of the reporting period such that applicable price for
the next month to coincide with time it reaches customer’s discharge port), less estimated costs of completion
and costs of selling final product.
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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 2014
Cost is determined using the weighted average method and comprises direct purchase costs and an
appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in
converting materials into finished goods.
n. 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.
o. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
p. 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.
The Group’s mining and exploration activities are subject to various laws and regulations governing the
protection of the environment. The Group recognises management’s best estimate for asset retirement
obligations in the period in which they are incurred. Actual costs incurred in the future periods could differ
materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine
estimates and discount rates could affect the carrying amount of this provision.
Key Judgements – Ore reserve and resource estimates
The Group estimates its ore reserves and mineral resources based on information compiled by Competent
Persons (as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Resources (the JORC Code)). These are taken into account in the calculation of
depreciation, amortisation, impairment, deferred mining costs, rehabilitation and environmental expenditure.
In estimating the remaining life of the mine for the purposes of amortisation and depreciation calculations,
due regard is given, not only to remaining recoverable ore contained in reserves and resources , but also to
limitations which could arise from the potential for changes in technology, demand, and other issues which are
inherently difficult to estimate over a lengthy time frame.
Where a change in estimated recoverable ore over the remaining life of the mine is made, depreciation and
amortisation is accounted for prospectively.
The determination of ore reserves and remaining mine life affects the carrying value of a number of the
Group’s assets and liabilities including deferred mining costs and the provision for rehabilitation.
Key Judgements – Units-of-production depreciation
Estimated recoverable ore over the remaining life of the mine are used in determining the depreciation and /
or amortisation of mine specific assets. This results in a depreciation / amortisation charge proportional to the
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 2014
depletion of the anticipated remaining life of mine production. Each item’s life, which is assessed annually, has
regard to both its physical life limitations and to present assessments of economically recoverable ore over the
remaining life of the mine of the mine property at which the asset is located. These calculations require the
use of estimates and assumptions, including the amount of recoverable ore over the remaining life of the mine
and estimates of future capital expenditure.
Key Judgements – Inventories
Costs incurred in or benefits of the productive process are accumulated as Crushed Ore at site & port and run
of mine ore stockpiles. Net realisable value tests are performed at least annually and represent the estimated
future sales price of the product based, less estimated costs to complete production and bring the product to
sale. Stockpiles are measured by estimating the number of tonnes added and removed from the Stockpile.
Stockpile tonnages are verified by periodic surveys.
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). The application of the Group’s accounting policy for exploration and evaluation
expenditure requires judgment in determining whether it is likely that future economic benefits are likely
either from future exploitation or sale or where activities have not reached a stage which permits a reasonable
assessment of the existence of reserves. The determination of a Joint Ore Reserves Committee (JORC)
resource is itself an estimation process that requires varying degrees of uncertainty depending on sub-
classification and these estimates directly impact the point of deferral of exploration and evaluation
expenditure. The deferral policy requires management to make certain estimates and assumptions about
future events or circumstances, in particular whether an economically viable extraction operation can be
established. Estimates and assumptions made may change if new information becomes available.
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). The net carrying value of each area of
interest is reviewed using long term commodity price forecasts from within the range of forecasts by Industry
analysts as per 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.
q. 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.
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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 2014
r. Accounting standards not yet effective
Refer to note 20 for accounting standards not yet effective.
NOTE 2: KEY MANAGEMENT PERSONNEL COMPENSATION
Key management personnel remuneration has been included in the Remuneration Report section of the
Directors Report. Total payments including valuation of share based payments were as following:
Short term employee benefits
Salaries including bonuses
Total short term employee benefits
Long service leave
Total other long-term benefits
Defined contribution pension plans
Total post-employment benefits
Total remuneration
2014
$
2013
$
380,686
380,686
273,234
273,234
32,438
32,438
413,124
23,016
23,016
296,250
NOTE 3: EXPENSES
NOTE 3A: EXPENSES INCLUDED IN INCOME STATEMENT
30-Jun-14
$
Depreciation of plant and equipment
48,024
Amortisation of mine properties
Employee benefit expenses
Operating lease rental expenses
1,196,477
645,333
25,884
30-Jun-13
$
4,306
0
548,588
25,466
NOTE 3B: AUDITOR’S REMUNERATION
Remuneration paid or payable of the auditor for:
– Auditing or reviewing the financial report
– Taxation services and corporate services
30 June 2014
30 June 2013
$
$
19,399
10,750
30,149
17,850
3,415
21,265
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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 2014
NOTE 4: INCOME TAX
Shree Minerals Ltd
a. Income tax expense
Current tax
Deferred tax
Research & Development Offset
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 & Development 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
Mine development costs
Set-off deferred tax assets
Net deferred tax liabilities
2014
2013
-
-
(435,272)
(435,272)
(406,744)
406,744
-
-
-
(292,932)
(292,932)
(12,152)
12,152
-
(547,924)
(274,708)
900
547,024
(435,272)
(435,272)
Nil
Nil
1,491,072
30,472
62,397
(1,583,941)
-
79,092
1,526,787
(1,583,941)
21,938
-
274,708
(292,932)
(292,932)
Nil
Nil
1,117,630
23,434
36,132
(1,177,197)
-
1,177,197
(1,177,197)
-
e. Tax losses
Tax effect of Tax Losses - offset to DTA (refer note C)
Tax effect of unused tax losses for which no deferred tax asset has been
recognised
1,491,072
1,117,630
503,876
1,994,948
195,333
1,312,963
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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 2014
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 2014
30 June 2013
$
(1,391,141)
Number of
Shares
$
(622,762)
Number of
Shares
107,881,712
95,265,753
Options totalling NIL (2013: NIL) and Share Performance Rights totalling 1,000,000 (2013: 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 Guarantees for Rehabilitation Bonds
NOTE 7A: TRADE AND OTHER RECEIVABLES
Interest receivable
Prepayments
Income Tax offsets
Trade receivables
30 June 2014
30 June 2013
$
$
2,183,998
1,233,606
30 June 2014
30 June 2013
$
943,387
$
801,852
30 June 2014
30 June 2013
$
12,080
245,431
623
$
13,424
18,920
0
623
GST and ABN withholding tax receivables
302,136
89,155
560,270
122,122
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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 2014
30 June 2014
30 June 2013
$
2,677,549
( 608,726)
2,068,822
$
0
0
0
NOTE 7B: INVENTORIES
Iron ore ( crushed & uncrushed ) at cost
Impairment ( diminution in value at net realisable value )
Iron ore ( crushed & uncrushed ) at net realisable value
NOTE 8: PROPERTY, PLANT & EQUIPMENT
a. Movements in Carrying Amounts
Movement in the carrying amounts for each class of property,
plant and equipment between the beginning and the end of
the current financial year
Opening balance at 1 July 2013
Additions
Transfer to Mine Development
Depreciation
Balance at 30 June 2014
Earthwork
Plant &
Equipment
Motor
Vehicles
91,190
0
(91,190)
0
0
30,182
310,549
0
(40,224)
300,507
30,097
32,076
0
(7,800)
54,373
Total
151,469
342,625
(91,190)
(48,024)
354,880
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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 2014
NOTE 9: EXPLORATION EXPENDITURE
30 June 2014
30 June 2013
Exploration and evaluation phase expenditure capitalised
$
263,640
Movements
Opening balance at 1 July 2012
Exploration capitalised
Impairment / relinquishment
Transferred to Mine Development
Balance at 30 June 2013
Opening balance at 1 July 2013
Exploration capitalised
Impairment / relinquishment
Balance at 30 June 2014
$
1,031,779
$
5,931,785
1,272,933
0
-6,172,939
1,031,779
1,031,779
132,476
900,615
263,640
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.
The following three exploration licences were relinquished during the Financial year ended June 2014, at the end of
their term which resulted in impairment of the exploration & evaluation expenditure on these licences.
Impairment
EL42/2004
EL43/2004
EL54/2008
Total
Mt Bertha
Sulphide Creek
Rebecca Creek
-$202,934.73
-$674,564.92
-$23,115.46
-$900,615.11
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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 2014
NOTE 9A: MINE DEVELOPMENT
Opening Balance
Mine Development Costs
Deferred Mine Waste
Amortisation – Mine Development
Transferred from Exploration
30 June 2014
30 June 2013
$
6,172,939
3,981,872
1,077,831
(1,196,477)
0
0
10,036,165
$
0
0
0
0
6,172,939
6,172,939
Note: For funding the development of Nelson Bay River Iron Project, the company entered into off take &
Funding contract. These funds have been used to fund the mine development. Under the agreement, the
company is required to sell 800,000 tonne at a discount to the counterparty under the contract, being
effectively the funding cost. The funding cost attributable to the project development period has been
capitalised as part of mine development amounting to US $0.39 million.
NOTE 10: TRADE AND OTHER PAYABLES
Current
Trade creditors
Other creditors
Advance
Loan
Provisions
30-Jun-14
$
1,772,096
442,112
1,921,894
20,480
26,107
4,182,689
30-Jun-13
$
192,129
43,781
1,043,515
12,876
18,694
1,310,995
Note: Trade and other payables include an advance received from Singapore based, Frost Global Pte Ltd
(“Frost Global”). The Company had in May 2013 entered into an Off-take Agreement for its Nelson Bay River
Iron Ore DSO products for 800,000 tonnes with Frost Global. As a part of the agreement, Frost Global will be
providing funding of US$4 million by way of advance towards the supply of Iron Ore to be repaid by deduction
from gross sale proceeds from each of the first 8 shipments ( of appx 42,000 tonnes +/- 10%) of Iron Ore to
Frost Global. The off-take contract is at normal market terms linked to prevailing index prices at time of each
shipment. In addition to advance repayment as above, there is a discount allowed over the market based sales
terms as a consideration of off-take finance. The company has received US $3 million in this regard (in total
including US$1 million during the financial year ended 30th June 2013) from Frost Global to-date & has made 3
shipments to Frost Global to-date wherein US $ 1.125 million has been adjusted to-date, with a remaining
advance balance of US$ 1.875 million (Aud $ 1.92 mn) which is included under current liabilities.
Page 37
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
NOTE 10A: TRADE AND OTHER PAYABLES
Non-Current
Loan
30 June 2014
30 June 2013
$
23,752
23,752
$
19,668
19,668
NOTE 11: CONTRIBUTED EQUITY
121,760,000 (2013: 95,947,500) Fully paid ordinary shares
9,678,432
9,678,432
The Company has issued capital amounting 121,760,000 (2013:
95,947,500) with no par value on 30/06/2014.
30 June 2014
30 June 2013
$
$
Movements
Opening balance
Shares issued
Options exercised and to be allotted
Capital raising costs
Closing balance
(a) Ordinary Shares
At the beginning of the reporting period
Shares issued during the period
–
–
9 December 2013
20February 2014
At reporting date
9,678,432
4,130,000
0
-216,541
13,591,891
9,678,432
0
0
0
9,678,432
Number of
Shares
Number of
Shares
95,947,500
95,947,500
13,350,000
12,462,500
0
0
121,760,000
95,947,500
Note: on 9/9/2014, 20,293,334 shares were issued for total issued shares of 142,053,334 shares
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 2014
(b)
Options
At the date of this report, the unissued ordinary shares of Shree Minerals Limited under option are nil.
Opening balance : 0
Expired during the year : 0
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.
For the year ending 30 June 2013 there was nil tonnes of DSO Iron Ore sold. For the year ending 30 June 2014 there
was 130,889 tonne of DSO Iron Ore sold. Consequently, 130,889 Performance Rights will vest on 31 October 2014.
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 2014 and 30 June 2013 are as follows:
Cash and cash equivalents
Trade and other receivables
Inventories
Trade and other payables
Working capital position
30 June 2014
30 June 2013
$
3,127,385
560,270
2,068,822
(4,182,689)
1,573,788
$
2,035,457
122,122
0
(1,330,663)
826,916
Page 39
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
NOTE 12: ACCUMULATED LOSSES AND RESERVES
a. Accumulated Losses
At the beginning of the reporting period
Net loss
At reporting date
b. Option Reserve
30 June 2014
30 June 2013
$
$
1,779,916
1,391,141
3,171,057
1,157,154
622,762
1,779,916
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 (2013: nil) options and nil (2013: nil) Share Performance Rights were issued.
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 2014
30 June 2013
$
$
10,000
79,870
0
0
0
0
b. The Company has other rental and expenditure commitments of $28,800 within the next 12 months, $ 48,000
between 12 months and 5 years and NIL beyond 5 years. This pertains to office lease. The rental expenditure
incurred during the year was $ 22,814.41 ( 2013: $ 20,774.34)
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.
Page 40
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
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 supporting
Rehabilitation Bonds)
Guarantees for
30 June 2014
30 June 2013
$
$
2,183,998
943,387
1,233,606
801,852
Sub Total
3,127,385
2,035,457
(b) Reconciliation of Cash Flow from Operations with
Operating Loss after Income Tax
Operating loss after income tax
Non-cash flows:
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
Net Inflow/(outflow) from operations
(1,391,141)
(622,762)
900,615
1,244,502
(296,966)
(2,068,822)
2,012,728
400,915
0
4,307
219,674
(1,272,934)
94,471
(1,577,244)
NOTE 16: RELATED PARTY TRANSACTIONS
There are no related party transactions except for remuneration payments to employees in normal course of
business.
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.
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.
Page 41
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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 2014
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 2014, 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 $ 7,262
lower/higher (2013 - $17,791lower/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.
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:
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 2014
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
No share based payments were made in either the current financial year or the prior financial year. On 30 June
2014, there were 1,000,000 share performance rights on issue as per details in the Remuneration report.
NOTE 20: ACCOUNTING STANDARDS NOT YET EFFECTIVE
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
AASB 9 Financial
Instruments
(December 2010)
[Also refer to
AASB 2013-9 and
AASB 2014-1
below]
AASB 139
Financial
Instruments:
Recognition and
Measurement (in
part)
1 January 2018 The entity has not yet assessed the full
impact of AASB 9 as this standard does
not apply mandatorily before 1 January
2018 and the IASB is yet to finalise the
remaining phases of
its project to
replace IAS 39 Financial Instruments:
Recognition and Measurement (AASB
139 in Australia).
AASB 9 introduces new
requirements for the
classification and measurement
of financial assets and liabilities.
These requirements improve
and simplify the approach for
classification and measurement
of financial assets compared
with the requirements of AASB
139. The main changes are:
(a) Financial assets that are debt
instruments will be classified
based on (1) the objective of
the entity’s business model
for managing the financial
assets; and (2) the
characteristics of the
contractual cash flows.
(b) Allows an irrevocable
election on initial recognition
to present gains and losses
on investments in equity
instruments that are not held
for trading in other
comprehensive income
(instead of in profit or loss).
Dividends in respect of these
investments that are a return
Page 43
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
on investment can be
recognised in profit or loss
and there is no impairment or
recycling on disposal of the
instrument.
(c) Financial assets can be
designated and measured at
fair value through profit or
loss at initial recognition if
doing so eliminates or
significantly reduces a
measurement or recognition
inconsistency that would
arise from measuring assets
or liabilities, or recognising
the gains and losses on them,
on different bases.
(d) Where the fair value option is
used for financial liabilities
the change in fair value is to
be accounted for as follows:
• The change attributable to
changes in credit risk are
presented in other
comprehensive income
(OCI); and
• The remaining change is
presented in profit or loss.
If this approach creates or
enlarges an accounting
mismatch in the profit or loss,
the effect of the changes in
credit risk are also presented
in profit or loss.
following
the
Otherwise,
requirements have generally
been carried forward unchanged
from AASB 139 into AASB 9:
• Classification and
measurement of financial
liabilities; and
• Derecognition
requirements for financial
assets and liabilities.
AASB 9 requirements regarding
Page 44
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
hedge accounting represent a
substantial overhaul of hedge
accounting
that will enable
entities to better reflect their
risk management activities in the
financial statements.
Consequential amendments
arising from AASB 9 are
contained in AASB 2010-7
Amendments to Australian
Accounting Standards arising
from AASB 9 (December 2010),
AASB 2010-10 Further
Amendments to Australian
Accounting Standards – Removal
of Fixed Dates for First-time
Adopters, AASB 2012-6
Amendments to Australian
Accounting Standards –
Mandatory Effective Date of
AASB 9 and Transition
Disclosures, AASB 2013-9
Amendments to Australian
Accounting Standards –
Conceptual Framework,
Materiality and Financial
Instruments and AASB 2014-1
Amendments to Australian
Accounting Standards.
None
AASB 2012-3
Amendments to
Australian
Accounting
Standards –
Offsetting
Financial Assets
and Financial
Liabilities
1 January 2014 When AASB 2012-3 is first adopted for
the year ending 30 June 2015, there will
be no impact on the entity as this
standard merely clarifies existing
requirements in AASB 132.
AASB 2012-3 adds application
guidance to AASB 132 to address
inconsistencies identified in
applying some of the offsetting
criteria of AASB 132, including
clarifying the meaning of
“currently has a legally
enforceable right of set-off” and
that some gross settlement
systems may be considered
equivalent to net settlement.
Page 45
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
None
AASB 2013-3
Recoverable
Amount
Disclosures for
Non-Financial
Assets
These narrow-scope
amendments address disclosure
of information about the
recoverable amount of impaired
assets if that amount is based on
fair value less costs of disposal.
1 January 2014 When these amendments are
first
adopted for the year ending 30 June
2015, they are unlikely to have any
significant impact on the entity given
that they are largely of the nature of
clarification of existing requirements.
When developing IFRS 13 Fair
Value Measurement, the IASB
decided to amend IAS 36
Impairment of Assets to require
disclosures about the
recoverable amount of impaired
assets. The IASB noticed
however that some of the
amendments made in
introducing those requirements
resulted in the requirement
being more broadly applicable
than the IASB had intended.
These amendments to IAS 36
therefore clarify the IASB’s
original intention that the scope
of those disclosures is limited to
the recoverable amount of
impaired assets that is based on
fair value less costs of disposal.
AASB 2013-3 makes the
equivalent amendments to AASB
136 Impairment of Assets.
1 January 2014 When the revised AASB 1031 is first
adopted for the year ending 30 June
2015, it is unlikely to have any
significant impact on the entity.
AASB 1031
Materiality
(December 2013)
AASB 1031
Materiality (July
2004, as
amended)
The revised AASB 1031 is an
interim standard that cross-
references to other Standards
and the Framework for the
Preparation and Presentation of
Financial Statements (issued
December 2013) that contain
guidance on materiality. The
AASB is progressively removing
references to AASB 1031 in all
Standards and Interpretations,
and once all these references
have been removed, AASB 1031
will be withdrawn.
Page 46
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
Part B of AASB 2013-9 deletes
references to AASB 1031 in
various Australian Accounting
Standards (including
Interpretations).
1 January 2014 When these amendments are first
adopted for the year ending 30 June
2015, they are unlikely to have any
significant impact on the entity.
None
AASB 2013-9
Amendments to
Australian
Accounting
Standards –
Conceptual
Framework,
Materiality and
Financial
Instruments (Part
B: Materiality)
1 January 2015 The entity has not yet assessed the full
impact of these amendments.
AASB 139
Financial
Instruments:
Recognition and
Measurement (in
part)
AASB 2013-9
Amendments to
Australian
Accounting
Standards –
Conceptual
Framework,
Materiality and
Financial
Instruments (Part
C: Financial
Instruments)
These amendments:
•
add a new chapter on hedge
accounting to AASB 9
Financial Instruments,
substantially overhauling
previous accounting
requirements in this area;
•
•
allow the changes to
address the so-called ‘own
credit’ issue that were
already included in AASB 9
to be applied in isolation
without the need to change
any other accounting for
financial instruments; and
defer the mandatory
effective date of AASB 9
from ‘1 January 2015’ to ‘1
January 2017’.
Note that, subsequent to issuing
these amendments, the AASB
has issued AASB 2014-1 which
defers the effective date of AASB
9 to ‘1 January 2018’.
Page 47
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Effective date
(annual
reporting
periods
beginning
on or after ...)
None
AASB 2014-1
Amendments to
Australian
Accounting
Standards (Part
A: Annual
Improvements
2010–2012 and
2011–2013
Cycles)
1 July 2014
Part A of AASB 2014-1 makes
amendments to various
Australian Accounting Standards
arising from the issuance by the
International Accounting
Standards Board (IASB) of
International Financial Reporting
Standards Annual Improvements
to IFRSs 2010-2012 Cycle and
Annual Improvements to IFRSs
2011-2013 Cycle.
Likely impact on initial application
When these amendments are first
adopted for the year ending 30 June
2015, there will be no material impact
on the entity.
Among other improvements, the
amendments arising from
Annual Improvements to IFRSs
2010-2012 Cycle:
(a) clarify that the definition of
a ‘related party’ includes a
management entity that
provides key management
personnel services to the
reporting entity (either
directly or through a group
entity); and
(b) amend AASB 8 Operating
Segments to explicitly
require the disclosure of
judgments made by
management in applying the
aggregation criteria.
Among other improvements, the
amendments arising from
Annual Improvements to IFRSs
2011-2013 Cycle clarify that an
entity should assess whether an
acquired property is an
investment property under AASB
140 Investment Property and
perform a separate assessment
under AASB 3 Business
Combinations to determine
whether the acquisition of the
investment property constitutes
a business combination.
Page 48
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
Effective date
(annual
reporting
periods
beginning
on or after ...)
1 July 2014
Likely impact on initial application
When these amendments are first
adopted for the year ending 30 June
2015, there will be no material impact
on the entity.
1 January 2016 When these amendments become
effective for the first time for the year
ending 30 June 2017, they will not have
any impact on the entity.
1 January 2015 The entity has not yet assessed the full
impact of these amendments.
New/revised
pronouncement
Superseded
pronouncement
Nature of change
None
AASB 2014-1
Amendments to
Australian
Accounting
Standards (Part
C: Materiality)
None
None
AASB 2014-1
Amendments to
Australian
Accounting
Standards (Part
D: Consequential
Amendments
arising from
AASB 14)
AASB 2014-1
Amendments to
Australian
Accounting
Standards (Part
E: Financial
Instruments)
Part C of AASB 2014-1 makes
amendments to particular
Australian Accounting Standards
to delete their references to
AASB 1031 Materiality, which
historically has been referenced
in each Australian Accounting
Standard.
Part D of AASB 2014-1 makes
consequential amendments
arising from the issuance of
AASB 14.
Part E of AASB 2014-1 makes
amendments to Australian
Accounting Standards to reflect
the AASB’s decision to defer the
mandatory application date of
AASB 9 Financial Instruments to
annual reporting periods
beginning on or after 1 January
2018. Part E also makes
amendments to numerous
Australian Accounting Standards
as a consequence of the
introduction of Chapter 6 Hedge
Accounting into AASB 9 and to
amend reduced disclosure
requirements for AASB 7
Financial Instruments:
Disclosures and AASB 101
Presentation of Financial
Statements.
Page 49
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
None
AASB
Interpretation 21
Levies
Interpretation 21 addresses how
an entity should account for
liabilities to pay levies imposed
by governments, other than
income taxes, in its financial
statements (in particular, when
the entity should recognise a
liability to pay a levy).
1 January 2014 When this interpretation is first adopted
for the year ending 30 June 2015, there
will be no material
impact on the
financial statements as the entity is not
subject any levies addressed by this
interpretation.
Interpretation 21 is an
interpretation of AASB 137
Provisions, Contingent Liabilities
and Contingent Assets. AASB 137
sets out criteria for the
recognition of a liability, one of
which is the requirement for the
entity to have a present
obligation as a result of a past
event (known as an obligating
event). The Interpretation
clarifies that the obligating event
that gives rise to a liability to pay
a levy is the activity described in
the relevant legislation that
triggers the payment of the levy.
For example, if the activity that
triggers the payment of the levy
is the generation of revenue in
the current period and the
calculation of that levy is based
on the revenue that was
generated in a previous period,
the obligating event for that levy
is the generation of revenue in
the current period. The
generation of revenue in the
previous period is necessary, but
not sufficient, to create a
present obligation.
Page 50
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
1 January 2017 The entity has not yet assessed the full
impact of this Standard.
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Standards issued by the IASB, but not yet by the AASB
IFRS 15 Revenue
from Contracts
with Customers
IFRS 15:
•
11
IAS 18 Revenue
IAS
Construction
Contracts
IFRIC
13
Customer Loyalty
•
Programmes
15
IFRIC
for
Agreements
•
the Construction
of Real Estate
IFRIC 18 Transfer
from
of Assets
Customers
•
replaces IAS 18 Revenue,
IAS 11 Construction
Contracts and some
revenue-related
Interpretations
establishes a new control-
based revenue recognition
model
changes the basis for
deciding whether revenue is
to be recognised over time
or at a point in time
provides new and more
detailed guidance on
specific topics (e.g., multiple
element arrangements,
variable pricing, rights of
return, warranties and
licensing)
•
expands and improves
disclosures about revenue
In the Australian context, the
Australian Accounting Standards
Board (AASB) is expected to
issue the equivalent Australian
Standard (AASB 15 Revenue from
Contracts with Customers), along
with a new Exposure Draft (ED)
on income from transactions of
Not-for-Profit (NFP) entities by
September 2014.
Page 51
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 30 JUNE 2014
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
1 January 2016 When these amendments are first
adopted for the year ending 30 June
2017, there will be no material impact
on the transactions and balances
recognised in the financial statements.
New/revised
pronouncement
Superseded
pronouncement
Nature of change
None
AASB 2014-4
Amendments to
Australian
Accounting
Standards –
Clarification of
Acceptable
Methods of
Depreciation and
Amortisation
[AASB 116 &
AASB 138]
The amendments to IAS 16
prohibit the use of a revenue-
based depreciation method for
property, plant and equipment.
Additionally, the amendments
provide guidance in the
application of the diminishing
balance method for property,
plant and equipment.
The amendments to IAS 38
present a rebuttable
presumption that a revenue-
based amortisation method for
intangible assets is
inappropriate. This rebuttable
presumption can be overcome
(i.e. a revenue-based
amortisation method might be
appropriate) only in two limited
circumstances:
•
the intangible asset is
expressed as a measure of
revenue, for example when
the predominant limiting
factor inherent in an
intangible asset is the
achievement of a revenue
threshold (for instance, the
right to operate a toll road
could be based on a fixed
total amount of revenue to
be generated from
cumulative tolls charged); or
• when it can be
demonstrated that revenue
and the consumption of the
economic benefits of the
intangible asset are highly
correlated.
The Australian Accounting
Standards Board (AASB) is
expected to issue the equivalent
Australian amendment shortly.
Page 52
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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 2014
New/revised
pronouncement
Superseded
pronouncement
Nature of change
Effective date
(annual
reporting
periods
beginning
on or after ...)
Likely impact on initial application
None
Amendments to
Australian
Accounting
Standards –
Accounting for
Acquisition of
Interests in Joint
Operations
[AASB 1 & AASB
11]
1 January 2016 When these amendments are
first
adopted for the year ending 30 June
2017, there will be no material impact
transactions and balances
on
recognised in the financial statements.
the
The amendments to IFRS 11
state that an acquirer of an
interest in a joint operation in
which the activity of the joint
operation constitutes a
‘business’, as defined in IFRS 3
Business Combinations, should:
•
apply all of the principles on
business combinations
accounting in IFRS 3 and
other IFRSs except principles
that conflict with the
guidance of IFRS 11. This
requirement also applies to
the acquisition of additional
interests in an existing joint
operation that results in the
acquirer retaining joint
control of the joint
operation (note that this
requirement applies to the
additional interest only, i.e.
the existing interest is not
remeasured) and to the
formation of a joint
operation when an existing
business is contributed to
the joint operation by one
of the parties that
participate in the joint
operation; and
•
provide disclosures for
business combinations as
required by IFRS 3 and other
IFRSs.
The Australian Accounting
Standards Board (AASB) is
expected to issue the equivalent
Australian amendment shortly.
Page 53
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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 2014
21: AFTER BALANCE SHEET DATE EVENTS
• A non-renounceable entitlement issue of 1 Share for every 6 Shares held by those Shareholders
registered at the Record Date at an issue price of $0.08 per Share for 20,293,334 new shares to raise
$1,623,467 was announced & completed
NOTE 22: COMPANY DETAILS
The registered office and principal place of business of the Company is:
Unit 2, The Pines Business Centre
888 Forrest Street
Cottesloe
WA 6011
Ph:
(08) 92861509 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 18 to 54, 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 2014 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 2014,
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 2014.
Dated at Unit 2, The Pines Business Centre, and 88 Forrest Street, Cottesloe, WA 6011 this 26th day of
September 2014.
Signed in accordance with a resolution of the directors:
_______________________
Sanjay Loyalka
Director
Page 55
For personal use only
Independent Auditor’s Report
To the Members of Shree Minerals Limited
Level 1
10 Kings Park Road
West Perth WA 6005
Correspondence to:
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
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 2014, 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
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 56
For personal use only
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
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
2014 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 11 to 16 of the directors’ report
for the year ended 30 June 2014. 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 2014, complies with section 300A of the Corporations Act 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
M J Hillgrove
Partner - Audit & Assurance
Perth, 26 September 2014
Page 57
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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 16th September 2014.
SUBSTANTIAL SHAREHOLDERS
The company has received substantial shareholder notices from;
– Mr Sanjay Loyalka (26,474,078 ordinary shares)
– Oceania Coal Resources NL (15,000,000 ordinary shares)
– China Alliance International Holdings Group (23,223,632 ordinary shares)
– RB Investments Pte Ltd (30,437,500 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 16th SEPTEMBER 2014
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
4
17
188
182
59
450
Total Units
431
64,747
1,845,179
6,727,347
133,415,630
142,053,334
%
0.000
0.046
1.299
4.736
93.919
100.000
UNMARKETABLE PARCELS
There are 32 unmarketable parcels as at 16th September 2014 totalling 141,662 ordinary shares.
20 LARGEST SHAREHOLDERS AS AT 16th SEPTEMBER 2014
Holder Nam e
RB INVESTMENTS PTE LTD
MR SANJAY KUMAR LOYALKA
CHINA ALLIANCE INTERNATIONAL HOLDINGS GROUP LIMITED
OCEANIA COAL RESOURCES NL (GUJARAT NRE RESOURCES NL)
MEGAWILD ENTERPRISES PTY LTD
ULLAPOOL INVESTMENTS PTY LTD
ROSECLIFF HOLDINGS PTY LTD
EXPORT MARKETING (BVI) LTD
MR SAHIB INDERJIT SINGH
CLAREMONT HOLDINGS LIMITED
MR MICHAEL LEE ANGHIE & MRS SANDY MICHELLE ANGHIE
MR AMRIK SINGH HEER
MRS RENU KUMAR & DR ASOK KUMAR
IACG PTY LTD
SANJAY NAGNATH MUKHEDKAR & ASHWINI DAVRAY
PRIMO FINANCIAL GROUP INC
DR DEEPAK NARAN
CHETAN KARIA
TANDON SUPERANNUATION SERVICES PTY LTD
MR SANJAY KUMAR LOYALKA
Balance at 16-09-2014
30,437,500
24,500,000
23,223,632
15,000,000
4,525,000
4,400,000
4,375,000
2,500,000
1,915,150
1,687,500
1,600,000
1,500,000
1,458,334
1,309,078
1,284,064
1,250,000
1,000,000
767,032
583,334
565,000
123,880,624
%
21.43
17.25
16.35
10.56
3.19
3.10
3.08
1.76
1.35
1.19
1.13
1.06
1.03
0.92
0.90
0.88
0.70
0.54
0.41
0.40
87.21
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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 2014.
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 61
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
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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
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