0 - nasfund'andal""tomen" w. bdi.,'.tha',heoudi, .vld ... ael 2000...

INDEPENDENT AUDITOR'S REPORT

IN[)£I'£ND£,\'- AUDITORS' Rn'ORTTO TII£ i\1£MIU:RS OfNATION,\!.SUl'ERANNUATIO;li .·UNl)

FOR TlI£ YEAR £NllEll 31 IU:C£MR.:R 2010

~.~

W. M,'e 3Udiled lIH: ..e"",pan)'inS ~nantial "al,-men" ~f Nat""'al Supc..nnua,i"" Fund ('"I'urld-) f<>r lIH: )'e3< ended 31llc<.,n!>ef 201 O. «."i"inS oflho "al""'''1 of ~nan<i,1 "",iIi"" as al 3 i llc«n''''''' 20 10, lhe "".,n.nl "f oomprel>on.i,'.i...<>me. tho .latomen' of chango< in members furlds and ",'on"",' of.ash n"",. fnr 1110 l-oar 'I>on ended and a ,unuoaf)' of'ignil;eanl "''':''OInting polioi<:< arid oil.., e'plan",,,,,' 001<:< ...., "'" Oft I'"g'-" 28 10 52,

Thi. rq>nr1 i. mail. ><I1.ly to lhe Fund". n,.",bors. as a body. in ..c""do"". "'ith lhe Supc"""nuali"" (Gc......1 P"",i,I""'iAc' 2000. Our .udi, ",ork h:u bo..'fI undona~on ><I thllt ... " migh' "ate '0 tho ....nd'. n",,,,bor> 'hnso man"", ,.. "'" "''<I..i",'<1l<> !Ute 10 them in an a"di,<><'< report and f<>r "" "'her purpo><:. To lIH: f"II<:<' e"""" pc""iucd by law. "e tl<> 001 ..."'" <>r....."'" re>jlOll>ibility l<> ""yon< "'her Ihan lhe Fultd om! 'ho F,,"d" ntenlbor> .. a body. f"" 00' "udit ,,'otk. fo< lhi, report.0< [0< lhe opinion, ",e h,,'" f,,",>ed.

T....' ....nd i\I"".~.'".nr. R"p<>n.iblllll· ror lh••·lnnd.1 Sl.,.m."1>

T","en and MOfLIgemen' .... ro>po,,,ibk fo< lhe prepara'ion and r.i, pr<><nl""", of ,he>< f",and.1 "OI.menl> inoccordanc:c ",i'h In'cma,i""aJ Fin'mcial R<p<>rIing Stand.nb. III. Supc,ar",u.,ion (Genornl f'ro\'i,ion.) Ac' 2000.nd ,hepM,n,lal "andard' i.<-u<:<l b)' lhe: Uank of Papua N.,,' Gnin... Thi' re""""ibilily i""Iud<:<: <k<igning. in\pl,"","'ing ..,d",.I"..i"ing i"!<'mal OO<11rol ..-I.,'an, to ,h. prepara'"", and f.i, presonuI"'" of ~nan<i,1 ".'<-m<n's ilia' are f~ fromm.te";al ",i"'a1,'fI"'fI". "holn..vr d"" '0 fraud 0< """" .. i",,'ing and "I'I'1)'ing appropri". """oon'ing polido<: and makinglI<:<:oon,ing «tl",a'''' that an: n:a""",bk in 'he e;re"",',""",,".

A"dlto,.,· 1-t.. ""ft>I~llIl)'

Ou, re'pun,ibili,y i. '0 .'p"-'" an opinion "" ,he>< fin"""ial 'lat.....n" bosed Oft ou, oudi,. We eor.duc,ed 00' audi, inaceord.""e ,,'ilh Inl<:matiOf\al Slandartl< Oft Audilin¥. 1lIos< "altd.rd, "'Guire ,h., we .omply ,,'ilh rel"'I"' elhicalreq"i...".n" and plan and perfn<rn 'ho I"di, '0 obtain relsonable I»urnnco wh"'h", 'ho tin.""i.1 ""omon" aro f"" ofma,rn.1 mi"""em.nl.

An Iutlil in.'oh'es pc,f<>rmin¥ procedure, '0 obt.in audil "'idenc. abolll lho """"'"" ""d di><:losures in lh, ~""""ial

""tomenl.. 'Tho pro<:odures ..I""od dcrond 011 00' judgm.....'. i""luding ,he ...,os",""nt of "'" ri.k, of ma'ori.1ml,m,.",....., "f'ho f,nanti.1 ".'.....n". "holhor d"" '0 fraud or .rrn.-. In mal<ing 'hnso ri'k MSdSlJlrnlS. "'. eon'idor;nl"","1 eOftt~ 'Ob'anl l<> ,he O",ily'S ""'I'"rall"" and fal' pr<s<n':U;"" of ,he: ~n.n<:;,,1 ".to'"""l' in <>r<lcr to d«illn audilprocodu"''S thai are .ppropriato in ,he .ire"m"a bu' not for ,he 1"''l'''5'' of o,.pre..ing an opinion 011 ,h. orr""ivo.....of ,h. <n'i'l", in,,,,,,.1 OO<1'rol. An .udi, .Iso i lude< ....I""'ing 'he "I'I'ropri.'.",,, of "«>WIling pri... iplos used and ,h.",a"",.blcn<:<s of .."""nll"l1 csti"""<:< "",do by m.nOSmICnl. as ,,'ell as e,'al....I"lI ,he "'·....11 I""",ntal"'" of 'hef"'andal ""tomen"

W. bdi.,'. tha' ,he oudi, .vld..... "'. ha.-. ublaiocd i' sufri.len' and .pprnpriat. to pro"ide 0 bo'i' f<>r 00' ""inioo.

A.dlt opinion

We ha"e obt.ined all III. Tnformatioo and e'plana'ion. "'0 required fnr tho purpo><:> of00' ."di,

In ou, ""i"I"'"

(.) '110 occ"",panying f"'andal "a'emon" gT,.. a lrue .nd fai' viow of '110 f"'andal "",i'ion "f ,he Fund a' " 31lkoo",""" 2010 and of I" f"'anti.1 ""norm"""" and i" c"'" no". fnr ,110 )'." lII.n ended in ......d"""" "illlIn''''''a,i""ol Fin.""lol Reponing Standard.. S..po::ran"ualion iGe,....1 Pro,'i,ion,) A., 2000 and 'ho pru<!<ntlalswn1>r<Is issuod by 1110 Ilank ofl'.pua N....' GuT"".; ,nd

(b) prop<T IIOOOOn'ing =<1< h.,-. bo.n k.pI by the ~'"Itd as far os appoar< fl"," 00' ."",inali"" of'ho«: record,.

01h,,., "1011<1'1

Rd.,-an' mical ''''Iuire'",,'fI'' fo< .udit"" indopcndo"". "'" sc' 00' in WAC's Cnd< of E,hi., fo< Prof""iOf\al A""oontan".Due: '0 aKPMG 1'"'"'''' and co"aln oudi, ,..m ffhoinS nI<'fI1bors of the Fultd. """"' of'ho rel",'an, <:Ihieal "'Gu;rcmon"an: 001 m.l. We ha". implc.....ntcd al\Pl'OP"ial fel\U'lnls '0 address lh, resulting lhre'l' '0 00' iltdopc-n<lcnc<, 'Tho!Joardof T",,,,,,,, of tho Fund. 'ho B"n~ of I'NG. and CPA I'NG han OO<1~,,"or1 '0 us 'hei' agreen",n' tha' ,h...roguard> an:...frieien"o .nable", '0 iss"" 00' indeprndrn'.nditor;· report ,ollie mombcr<.

'n a<ldi'''''' '0 ,udi, ••".'k... KI'MG P"O"idod pcnnissihl. to'OI"'" "",,'i... ,,, lho Fund dunng lho finandaly.ar.

DATED at Port Mor«J>y lhi' 28- d.y oH'.bru.oy 20 II

Cbarl.",d Ao<"U"Ia"t>

Ragh"n"han Muralidh"","

/""."""Rcgi",y,'<I unde' ,h.A«oonlan" Ac' 1996 L<.d... in SUI,.nonn""ion 126

DEClARATIONS

[)..,'nnlion b,· Tn"'..,.In our op;nioo Ihc Funds' acCOunts sel OIn OIl pages 28to 52 arc drawn up SO as 10 gi,-c a lrue and fnirvicwofllK: Sl~le ofaITairs as al ) I Dc<:emlxr 20 IO. and the surplus Ixfo'" distribulion for Il,c year ended On lhal dale. of 11K: Nalioua'Snperannualion Fund !ill far as they concern members of the National Superannu:llion Fund.

The TntslCCS have satisfied lIwmselvC'S that 11K: NASFUND Board has

(I) idelilificd the kcy fi"anc~,l ""d opel'3ling risks:

(2) established 'yslems 10 ronlrol and monitor toose ri'ks ir.cluding adhe""lCe 10 prudenl policies and procedures. ",asonable operaling limils alld adcql.,tc and timcly reponing proccsscsc a,1d

(3) sali'fied itself thai the ri'k ,,,,,nagenlCnl .ystem. arc operaling eITeetively a,1d are a<!equale in regard 10 the ri.k Theyare desiglled to eOlilrol: and

(4) Ihere arc no apparenl conniet. of imereS! with ""peet 10 NASFUND'scngagemem ofan eXlernal auditor which maye<ln\p.-o.-nise Ihe indcpc,ldcl1cc <lfthc audilMs perfo",mllec.

The financial Slale'llCfIt. have been drnwn up in accordance with the requiremem. of Ihc Superannuation (Gc,wrJl ProvisiOl's) Ael 2000 alld Ihe rcquirenlCnls of Ihe Trust Deed of Ihc Nalional SUptrdtlnuation Fund dated) I May 2002.

DATED al Pon Moresby thi' 25th day of February. 20( I

For and 01' Ixhalfof the Boord of Dil'C(lors of Ihc Tru;;lcc

&--iMr John Jeffery. CBECh.,im,al1

1t..1G.~""f'\_W;-William Lamur

Audil & ReniuncrdTion Conunincc

'II our opiniOl' lIw Fund,' ",co,n'" sel QUI on pages 2H to 52 a", drown up so as 10 gh'e a lrue and fair view of the .Iale ofaffairs as al ) I Dc<:emlxr 20 IO. and tlK: ,urplus Ixfore diS!ribulion for the year ended on thai dale. of the NaTional Superannu:nioll Fund SO far as Ihcy eOOeCTn n'e"llxrs of the Nalioo.1 Supera"""alioo Fund,

The Managcmcnl h3\'e satisfied then'sel"'" thallhe NASFUN[) Board has

(I) idenlified the key fi,w'lCial 'Illd opera,ing ri.k.:

(2) established syslcm, to cOlilfol a,1d I11O"itor toose risks including adher<:l\Ce 10 pn,denl policies a,1d procedures. ",.sonable operating lim;1S a1,d adequate and tinlCly reponing processesc ..Id

(3) satisficd itself Ihal Ihc risk n,"'lllgcn\ClU systCmS are optrJli'll: eITcctively .,Id ore adequale in regard TO lhe risk Iheyare designed to com'ol: and

(4) Ihere are no .pparelll connietS Ofinlercst wilh rcspcc:1 10 NASfUND', engagClllClI1 ofon e"crnal audilor which may<:omp.-o.-nise Ihe indcpc'lden<:c of the aud;,o~s perfonnaloce.

The financial Slmeltlem, ho"e Ixen drawn lip ;n :Iccoro,nlCe with the requirements of lhe Supenl1nu.llion (G<:ner.1 Provi~ion~) A<:I 2000 a1,d Ihe rcqui",nlC'"~ of 'hc Trusl Deed of Ihc N.,io,,"1 Supcra'"'na,ion Fund daled ) I May 2002

DATED al Pon Moresby Ihis 25th day of February. 2011

For and 00 Ixhalfof the NASFUND Marngemenl

MrR~II.~oJoint ChicfExccmi''C Officcr

I IIan Tarulia MBE

Joinl o,ief E><ccUli'-e Officer

Loolle.... in SUI,e..."nuotion 127

STATEMENT OF COMPREHENSIVE INCOME

Stalo,nont orComprchons;,"o Inoomo

2010 ""AI/ """"on" ,,," ~:rp",s.~d in K'OOO No,o

Not in,'ostn.on' '0'1'10'

Inl<r<"Stlncomo 60.037 47.595

[)i,'idcnd Incornc 33.843 19.8l>4rroperly Rcntals 37.244 24.077MO'-emenl in nel markel "due of in"e'lmenl:t 2(a) 206.M5 145.452

rwpcny costs (8.645) (7.395)Oi....t in"eSlmonl eosl!; (2141 (141 )N<I inwSimonl 'orplu, j2g.710 229.471

Otho. incomoSundry Inronle 2.354 1.435MO'-emenl in ncI market "aille ofOlhe' .,"'" 2(b) (17)

2.337 1.435bl'"ndilo,"St.lT ,dale-J expcnses 6.684 5.537Trust"'" F.." I Board expc'"'''' ".. "..In"eSlo'ent M,n'Sers fcc 2.487 unFund Adminim.lion fcc 4.020 3.380Hank ofPNG ,ogul'lory fee< 248 ....l:Ionalions ~ ~

Ad,...i,;ng '" SO,Ocr.... iation ~, 451OIher Admini"...lion e.pcnses 7.372 5.576

22.390 18.2M

Profit Mfo.. I .. JOll.657 212./;63

Incorne lax expense 4{.) (13.9<>2) ( 11.898}

Profit ror th. period 294.(,95 200.765

Other ""mprehen,i... income

Re,-.I""lion nf p"'l'"ny planl .nd C<juipm...t W. 4852lncon,e la, on Olhe, eornprchen,i'-e incon!e (l00l)

Total comptfh.n';". income ror the ... riod 294.603 205.617

TIle ,tat,...ncnt ofeornprchensi", income i, 10 be reod in conjtmrtion with thc OOIe'S 10 and fonningp"n of the financi.1 ,tatomont.< ",t 001 on pages 32 10 52

Looden in SUllononnultion 128

STATEMENT OF CHANGES IN MEMBERS' FUND

Slal~m"nl "f~h"n~~s in M"nllH:n' food.•

All a""",,,n a"'''''P''''=d;n K '(JQ() Allo<al~d Uoall""al~d 1I..~al"Ollon TOlol TOla',~ '"'" 11...., ..... ,~ '"'"

I Janua!)' 2009 1.l11l.922 ISS.700 1.2~1 1,.161,863 I.H3.31l1

Comrib"lioo. """i,"Cd Hl,Stl 1.234 232.145 114,-142T"",f<rs frolll OIbtT r"nds 63.491TrJ",rers i",pede 14,072\\~Ihdraw;d, (12S,584) (125.584) (90,743)TOI.I ~Olllp""'<nsi,-c iocOln< ror "'" 1"'ri00 200.765 4,852 205,617 14,115tnl<"''' .1Iocated to M<mbcn A,counlS 92.169 (92,169)lnl<rim in"".... paid on wilbdraw.l, (I,54)5) 0,54)5) (821)

II Ot«mh<r lllO'J 1,509.018 2M.On (,,09.\ I,TI'J,lJ6 1.467,863

I h"""I)' 1010 1,509,018 264,025 6,093 1.179.1J6 1,467,863C""tribu,ion< n:ceind 27M79 16.443 289,522 2J2.745Tr-.n,fera from "'.., fund, 0.- 3.062 9,718W"hd,..,,-.I. ( 149,828) (149,828) (125,584)TOI.iII rom!"e""";'''' iocomc for t" period 294,695 (92) 294,603 205.617Inte"", .11oc.1c'd 10 Mcmb<r> AccounlS 21l7,l1<1 (2<17,111))Interim inlcre" paid"" will>dra"",I, 0,62'" (1.62'" (I,SIl5)

II Dc<em'" lOIO 1.84<i.1l-l5 J69,.1!16 6,(101 2.221.532 1,17'1,\36

• Alk""l,'<l r,,"ds "1'ICselll NAS~UND'. ""hplion 10 pay benefit. 10 Mem!>",••"d 1x1lclki.,ic••ri.ing o. 01 3 IIk'-"I1lb<, 20 IO.U".I1"".'C\! runds IlI<lud,. ,..,in>alCd ,""""..... of K88.6 milliun (2009- K56 milll"") .0,'1' 2010 di"nbull')R of

""".ne,

WI'I'lll'HAW,UoS Sl'~I,'t\Rl' lOit,/11 a"""",U " ...~;n ()()(J

8cn~nl Tn.. No ~lc"'b<c f.mpIUl·~r llou,I"~ ,= T.. (;...... N..

llou,ing 1,300 9,884 " ..~ ..~UlI<mp!oyn><n1 (Pani.l) 30.148 15,55,} 16,971 '"' 253 1.513 34,703 32,937

TOTAl. 31.-148 15,443 16,9;1 427 153 1.513 44,607 42,841

8<ncfil Tn'" ,. M<mbt, t:mpl"l« ltou'in~ ..... T., G~ "<I

Di..bilil}' '" 1,408 2,274 '",

" 3,199 3,742l,""eased ... 3,011 V05 '"

," '."" 7.788

EmmigralWn , ,."

, • ," ~

Redundancy ," " • ,

" "R<1;",mcnl '" 5,119 8,~20 ". , no 13,97'J 13,696Tran,fe, 25.1)40 '" ,% "

, .., ..,Unemploy"",nl (Full) 16.726 29,863 48,1l-l2 1.011 ))2 2.998 78.767 75,437

TOT.. 1. ~2,875 39,6)3 (,.1,135 ,."" '" 3.m 105,221 101.S05

TOTAl. 74,323 65,076 81.105 2.031 ,.. 4.884 149,828 1~4,J46

The stalClllCllts or ch:rngcs in equily i, to be read in conjunclion Wilh the oolC' 10 and forming pan of ~IC rona",,;.1stm<"'~lI1'''1 Oul On pagcs 32 10 52,

I.Clld.,,", in SUI'~rMnnUMlion 129

Mr Jolin JelTel)'. eBEChainna.Dale: 2~ February. 2011

STATEMENT OF FINANCIAL POSITION

m~1>1r WiIIi..n lamurChairman Audil & ~en\ul..mli"" C"",miltce])ale' 25 February. 2011

1l>c .lalemcnl Ofnel asselO i. 10 be reall in conjul>Clion w;lh lhe lIOles 10 and forming pan Oflhc flnal>Ci.1...lemenlO sci oul on pages 32 10 52.

leaders in SUllerannual;"n I3U

STATEMENT OF CASH FLOW

Slalem.nl "f C",h FI" ..·20111 ,W,

,jIJ am.",III•• arr e:<f"I'l'4.J in K '000

,....",.OPER,\TING "CfIVITlr.s

hll.= reeei,-ed 48.160 36.601R.m n:cei,'oo 28.863 16,314Di,idcl'ds n:cei,-cd 33.843 19.884Olher f= r""oived 2,354 1,436

PaymClllS (18.662) (24.0811)

Wilholdi"ll laxos paid (3.362) (3.563)TOlal pa;d (651)

CII,h no,,", frunl ol..nllin~ 1I00i,·ili.. 91.1% 4S.941

IN\'ESTING ACfI\'ITIES

Pureba.., of pl,nl and "'l"ipmom (927) (347)

proceeds f,om sale or propcny ptanl :md C11nipmellt " '"PTocccd, from salo of 1,'O"ommonl sec"ril;es and other loam; 4S,418 19.815

Proceed, frOIll sale of "'luily i",-,:slnlCIl1S 13.2.11 170.744

Proceeds frOIll sale of propcny in'-':SII"'"IS 11.641In\"c'illllCIUS in equ;IY (114.444) (64.823)

In"esllllont' in I,""'omment securili.. aJ,d other loans (222,717) (191.171)

h"'CSln"'nIS in ;n,-cstmenl propcnics (92.517) (86.709)

C",h flo... o,""d hy im·o"in~ "Oli,·ilic. (.100.279) (2S2.377)

FINANCING ACfrVITI.;S

Receipt ofGo"cmlllcm gram 4.000 '.000Tra"sfrn fro", other ftmds (OThIL) ,.'"Comribulions Re,ci"od 289.522 232,745Wilhdrawal, paid (149.828) (125.584)lmo.im ;merell paid (1.629) (I.S05)

C.,h Ro..·• frum finu.in~ lI"i,·ili.. 148.731 108.656

Effecl of ox,hango r,lle mO"ell",nIS (748) 7.233)Nel ine,ease in eash aud cash cqui'lIlellts (61.100) (90.547)

Cash alld cash cquh'lllenlS at beginning of the year " 1%,432 280.979

C",h ""d .a,h equi""lcnb a' end uflhe ,our 129.332 190,432

The Iialen""u orcash now is to be read in cOI~uI"lio" w;lh lhe "otes to and fonnlllll pari of me fi"'J"ialSialemell"set 0111 01' p"gc 32to 52.

Leade," in SUI,er"nnu"l;"n 131

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

I. ROl"'rlin~ rn,il)'N.lio...1Super"""ua,;"n F"nd (lhc "Fw'd") i. an enti,y d"mi·oi1od in 1'.1'"' New Ollin.... Tho .,hlr,,,,, of'bo Fnnd', rogiSl""odonke isAlhlImen' 6 & 7 Scc1ion S8. 4 Mile, Si, Hubcn MwflOYIligbway, l'on Moresby. Papua New (ioinc•. Tbe Fnnd mil"'"i1y i, in,..,lwd in 'be m.n.geltlCn' of ,,~ifen,,:nt fund, «"-I""i''''e......,or employees lhroul'Jloo, I'al"'a New Gui"oa.

2. B.,i. uf p"'p...l"'n(a) Sl.,omonl "fron,!,li.no"Tho flna""i.1 ...le"ICnlS of ,ho Fund have b....,n P"-"p""",, i" ac·""rd.""" ...-i'b In"'fTI3,i""a1 Finand.1 R''f'OMing Sl3"dards(IFRS,j", adopIed by ,bo "C'OOUUling S'a,ldard, Board of Pal'""New G"inea ("SIl) and ,he ,.:q"i"""e"1< of lbe I'ap... NewGuin... Comp.nies "e' 1997.nd 'be rrWon,i.1 ".nd.ro. i"""dby Ilallk of I'"p,", Now Gui"e•.

1bc flnand.1 "",e",,,nos b.w b«n .",oori,.d fur i"'"e by 'heIloard ofl)ircc,,,,,, on 2S February 20 I1

(b) B.,i,ofp"'p... 'ion1bc fln.noi.1 SIalo"'e"" h3\" b«n I""'"p"rcd I""imarily '"' thohi'loric.1 <-oS! ha,is e.'",l'! fl" lhc f"I1",,,,,g It""e,i.1 i"~n. inlb. "a,,~n,:,,' of fina""ial I""i,ioo

r",""ci.1 inSlru,ncn" al r.i, v.l"e O,,,,,,gh pront Of los, .re1l1<:a,,,,.-.I., f.i, v.I",·",'ail.ble-fe,.--..Ie financial .""'os OfC "",",,,,,-.1 a, fai, , ..I""invos,,,,,"" p",,><.~'y i, ,ncasorcd.t r.i, ,·.1"0

(r) Funrliun.1 Cu,,,,n")'The nn,,,,.i.1 ,"Io",on" arc pre",mod io Ibo 1"1"" Now GUille"eo"'....'y. 'be Kina ",!rich is ,be Fund's func,i"".1 .""e""y.•ndha, b«n 'OIlfId<d oIT'o 'h. n,""",' 'ooll""od,

(d) U.., of ..lim.,...nd jud~m.'nb

The p"'P.,•.I;"n of. fln.""i.1 "'f'OM in .""formity ...-i'h lFRS.rcq"ires managem"," '0 make judgm",,". es,im.tos nnd a>''''''plion< ,bOl .n.....' 'be 0flllli<.li"" uf poli<ies ..d lq>nrtedamoun" of "''''IS .od li.bili,i.., incomr .00 ''''pens<>, A<l".1fCSlIl.. ""y dim.,- from Ibos<: oSlima'''''.

1bc .Slim",e, aod uodcrlying a""m/>lion, are rc,'i.,,-r<l 00 an'"'8OiIl8 ba,i,. Rovi,i,"" l<> ....,coomilig ... imalcs arc recognizedin lhc period in ",hic'b ,he eSlillGnr i, fe,·i",lI.nd in futlln: pt...-i.

odsif.tT''''ed,

(0) Ch.n~.. in .«uon'in~ poliri..lhcrt w"re n" .hange in """''''n,ing policic, ,,·hich hod animp.., on ,he Fo"d" fi,,",,ci.1 ''''",,,,,n'' du,ing the yOll'.

J. Si~niliran' '«Ulln'inlll""i"i..The accoG1Iting policies S<1 ,"II bek>w MVO been 'fIIllied 00"";>-tenlly '0 an pt..,-;oos plc'''nle"" in I"'-"SC fin"""i.1 s,""~nr,,'.. nndhav. b«G aflll1i,x1."",i,tcn'ly by tb. I'und.•xc"!" .. e,pl.i",-.I inoo,e 2(e). which oclJI''''''es ch.nges in """"uming policies.

C'"f13in .""'I'"'",i"" ,,,,,,,,,,,, ha"e be..n ",d.."it"x1 10 conf"nnwilb Ibe .urron' YC'~' pro",,,,,,,ioll,

lal Member> ""coun',Comrib",ion, aro accou"led for.•"d m.",be.,-,' ",:<oun" crcdi,od",ilb ,hei, eoo,rib,nion' and empluyers contribu'i"",. 01\ a <.,bba.i. based 00 tb. "..,.ipl of ""'oncikxl '"OIltrihu,ion srho<,lulcs,

Accoun,ing for in'."''' ",.-.li,,"" to 11"'''''''-'''' ..Counts is in """0'·danr. wi,h S,.."i"" g of ,he N3Iional S"pt.Tann",,'ion Fund Tro,'!ked .nd i. as follows:

I. In".,...t .",d;'ed ", ",cn,ho", i. 00 ,he basi, of,he period '0which con";b"tio", n:la,e:

2.lbc mte of in'cl\."<' i, d,~"nlli",""by ,be Ik,ord of I)i"",o'" oftb. 1ru..,.., .""1)' yc...nd i, ••knl.t.d on ,be daily b.b""" oftbo moml,,:.-.' accounlS.

<h) In'·"lm<n' ....IsIn accord",,,,o wi,h II'RS i",,,,,,,,,,,,,, ","'IS including ;n"""""n,r<<lp<-r,ics .nd ""ui,y i"",-",''''':''I> a:re includ.-.I in Ibr S"lcn><..", ofFi""nri.ll'o,i,i"" 31 f.ir , ..1"" as ."he bal."". d3l" .nd m,,,,,_",on, III f.i, ""Inc of invoslnlCnl "''''IS .'" rccognil<<I in lbe SlO1om"n, "f ,,,,,,,,relll."TISiw i"""n'" in ,be [lCrind in wbieb ,hey "",'u'-

The Fund's in,,,,,"" ill c",,,rolled O",ilios .re 're.toll a< plan ass<:1.or in.....'nnct" uf,he Fuod av.ilable for lillie andtb.",!"'" ",,, con",,1 ida'M in ,Ill..,., fo na"" i. I '""<I1,,-"n".

Ir) Fon.i~n cutn.nr)' l"nuNion,Tm"SK'ioll.' in fnn:ign .um:nri"" .r" l,.nslo',<1 ,,, ,he t',,,,,,i,,,,.1cu"oncy of ,be Fuod enti,ies ., oxoh.ngo ro,es ., ,he d.los uf ,belr""-",,-"'io,,•. Monc",1)' ,,,,,:ts ood li.bili,;"', <I<_nin3l,"" i" f",·eign ."rr.""ie, 31 'ho lI."]>OMing da'c.re l<1r.nsI3l,<I '0 ,ho funrt;"",1 o"""ncy at ,he oxcl,""!!,, role ."ha, da,o. 'l'bo foreign cu,lency gain or loss on nlOCl'"llIry i'e",,' i, ,he dilTe"...oc hclwocn.n"",i,.d .os' in ,be IUnc,io",,1 enrrcnry"' lb. hoginning or 'h.l"'riod odjo",'d for elT,,,,i,,,, il1l''''''' .,IlI I'"y"''''''' du,ing ,horcriod .n<1 lhc 'T1Tnrti,ed ,,,.. in fUTCign ",,"cn,'y ITan,I.,ed 'l,bo,.,..bang< ro,c ., 'ho "'f'OMing 1"--rio</..

Le.II".... in SUl,en"nuI,ion IJl


N"".I1IlJOCllIr)' »S<'\$ and 'i.b;lilies <lcnomin.loo in foreigJ1eu""",,;"'; lhat are nIC",un:<! at f.ir ,'aluc are 1\:1"",,1'1«1 10the fOooion.1 eu""n'Y .t lhe c,ehange ratc at lhe dalc thailhe f.ir ,·.Iue WllS del""";",,d. Non-monel"')' ilem. Ihal .renlC",un:d in I.......' of hi,toric.1 C<»I in a f"",il:" cU""''''')'"'c U"",IM«I u'ing the c.«hange rale '1lhe dMe ofthctran..... ion,

(d) I"'ferr«! t:'l"CadilUrtAll >1.rr housing .ubs.. i.... od'8JIC«I Ill\: an"",i"..! U,'<r ,fl,'c.yc... penod .1 20';' per annum.

(c) F,noneilll in'tru",on"(I) ,",on-dorh'''li... financi.1 ",.."

The Fund inili.lI)' "",ogni,.s ktans .nd "",.i".bles .00<lcposi'$ on the da'e that 'he)' arc ooigi"",c<l. All <>therflnandol asIiCt. (in<:luding ....., dc,igJ101,-<I .1 f.ir ,'.Iu.Ihrough profit or Ioso) ore n.'C<>gnilCd inili.it}' "" Ihe Ir>dc dOic.t "hkh the Fund t>;,,:on,cs • !",n)' 10 lhe conlractualp"",isioo< of the in'1r'Ilmcnl.

The Fund dc·n.,<ogni,.. " fin8JICi.1 as"" "hen lhe conlractu.1nght> to Ih. cash !low, fromlh. as>o1 •.<pir<. or it tran,f..... thenght. 10 "",ch'e lhe conlractual cash now, on the fina""ialassel in • lran""tion io which 'ubs,".,i.lI)' .lIlhe n.xs andreword' of o,,'ncrship of Ihe f"",,,,,i31 M«:1 arc lran,ferredAny intc"'" in tran,fem:<! flnanci.1 ....,. lhat i. c",",«1 orret.i""d by the Fond i. n.,<ognilCd as • sep>rate asIiCt orliabilil)'.

~·i",,".i.1 M«:1S and li'bilili.......c orr.... and the ncI "'""""I

pre..n"d in lhe Slatemcnl of financial posili"" "h,'O. and (HII)""hen. Ihc Fund lias • legal righl to orr"" lhe ..,,,,,,nls .ndintend, ,ithe< 10 senl, (HI' ncl bas", or 10 reali", the .....1.nd..lilt lhe li.bilil)' .i"'olt""""",I)'.

The Fu,oJ lias Ihe follo"i"lll\(Hl-<!criv.ti"< fina"cial a."",,f"",adal .,...1' .1 fair val"" through profi, or loss. held·IO"'at",ity finaoci.1 .,selS, I""". and recei,'abl.. ..,d ",·.ilable·for_ sale flO...ial assetS.

f'i""""ful o"c" Glfa;r ",I"" Ihro"Sh profil 01" 10.1.A fI""""i.1 ",<cI i, cl• .,if,c<l .1 r.i, ,'aloe through profl, or1_ if i, i, d",,;~cd "' held for trading or i, dc,ign.l<.-<I assuth upon inili.1 reoogni,;"'. Financi.1 ",S<'\$ arc d igJ1.Ic<l.1 fair \"aloe through pfOfi' or Ioso if the rond m"""g suth;nw..nlent< and mak.... purehase and sote deci,ion$ b3$C<l 00their f.ir ..Ioe in accordance with the Fund', docomented li,k"'''''''gc,""nlor ;ny..""""t >1oa1el\Y. Upon ini,i.1 =ognilionattribu,able Imn...';"" cost, arc n.'<ogni.,.;d in pfOfi' or 10" asincurred. Fin8JICial ...... al fair '·al ... through IXofit or loss"'" "'c.,u",d at fair ".Ioe. and changes therein"", re<ogni,oo;n profit or loss.

Ile/d.,,,",,,,,,,,,jtyfi"",,,,;,,1 aU'"

If lhe fund has Ihe posili"e inlcat .nd .bilily 10 hold <ltblsecunlies 10 ""IO,ily. then such r.n.nci.1 ts arc c1assir.•.,jas held-to-",.I.,ity. lIdd-to-o,.I"nty fin i.1 """" arcrecognized in;li.lly.1 f.i, "aluc plu, .ny di""'lly ,"ribu"bl,Irdn,..,ion ~. S"bsequenl 10 ;nili., r«:ognit;on held·lo",.IUnl)' f,nanei.1 assel' arc "'<..un:<!'1 anKlt1i",..! cO>1 ..ingIhc elT«1i," inl<rcsi m",hod. iess OIl}' impainnenllos=, An)'salo or ....1• .,if,oOlion of. ",on: thM in,;gnificanl .mounl 01held.lo-""lurity in'·....lmcnlS 001 cl... 10 the;, m,uunl)' "'oold""'-'II in ,he ....,..';fiC.I;on of all held.,o-",","lil)' in,'""",.nlSas .,'ail.ble·for.salo. and pre"enl the: F"nd from el..,;fyingin"CSlmen, ""unti.... as held.,o-"'",Un'l· for ,he eum:nl andlhe fOllo,,'ing '''0 fin3JICi.1 )'c=,

UI<'''' ,,,~I-n,·jl,"b1csLoan••nd ......i'·.bl.. a", financial as""" with fi.«I '"<ltlenninable pay,""ol'lh.1 arc nol qUOl«l in.n octi,'e Olarkel.S""h as"'" arc ...'COS"i,ed in;li.lI)' .1 f.i, ".Iuc pi.. an)'di'''''tly atlnbutable lransact;'" eO>15. Subsequ•."t to in;li.1recognilion loan, .nd " ...i,·.bl", .r<: lOe,,"n...! .1 an_iled00S1 u,ing the errccl;,'e ;nten.'Sl melbod. I... an)' i",pa;on<nl"'=.

Cash and ,"'" equi,·.ltnlS COnlprise eash bal..c and c.1Idc"",i15 wi,h origin.1 ma'unli", of thr,.., month, or Banko,'crd",1ls th;t arc rcpa),.ble on dc",and and form an io""",,1pan of lhe Fund', oash managemenl arc i""IU<ll.-<I as acomponen' of cash and cash equi,'alent> f", lhe purpose of ,heSlalemenl of cosh 1I0w,.

"",jJ"bi.""'.,ul< fi"""" i"i ""e"

A,'ail.bl..for_..1e Iin8JICial asS<'\$'rc "",,·<!eri"Mi,'e financi.1...." thai .... dc';gJ1a1«1 as ",'ailable· f",·..lc and 1..1ore "'"ela"W,-<I in any of lhe pre"ion, Catcgor;"';, Subsequenl 10;oili.1 ,ecognilion.they arc "'......n:<!.1 r.ir ,'aluc.nd ohangesIh,,,,,in. ",he< than i",!",innenl lMs..-. and f"",ign cu",,",,)'dilTe= on .,'ailable·for· sale equily in"rum'''l'. "'erecognilCd in othe< eompre"'....;'" income and prC>CTItcdwithin equilY in Ihc fair value rese,,'c. When an in",,,lmenl i,dcn:cogni,«I. Ihe <UmUIOli"e gain or k>ss ;n Olhercomprehens;,'e incom, is lI3JISferred to profil or 1M•.

(ii. Non-d";""i'·elin.nclaill.billlic<

The l'UloJ is restrictcd by lhe SUP"rannaation IGeoeral)I'rovi,ion ACI to borrow, All Olh<r f,o"""i.1 liabililies(i""lnding li.bilili", dcsigJ1.ted"' f.ir ,."Iuc through proli\ ork>ssl ore rcwgni.«I initi.lly "" the trade date at which theFund bcconICS a ,,""y to Ihc OOOIrac1U.1 obligation,.

Leade.... in SUlle.... nu.tion 133

NOTES TO AND FORMING PART OF THE FINANC1A.l. STATEMENTS

Dqnciariot> _Ihods.. _M lives and tnocloooI .-aIioC1 ..

re< n;1 • each f-.nal )...-.cnd and ~ il_ EotiInales in ........ of__ ..... of planl and

equ ...., re<<lCd io 2010.

(K) 1....1..... propertyI....-estmenl propetlj is IWOjXfI) held oMhc1 1<> nm rcniaIi_ ... for """",llJ'Pt"CCia_ IN" for both. but _ for .....

in lhe onlinary~ of bIasiness. "'" in lhe prodII<tiM Of

",pply of good< Of S<n'i«1 or f... adminlSlrolh·c putp<lSCS.

In.·,,,,,,,,,,, proflC'I1j' I, red II f.i, .,.1..... ith Illy 0"""8<therein t"CWll-"ilCd in profil lofs.Wb<.... the usc ofa propony <hIllB" woh 11>:01 it i' rct:lossifiod

(iiI 5-"-I '.-to1M of,cpbe.. a pwI of__ ofpropetl). planlllOd

"",,'f ..101 is n>:<lpizcd ...... nfT)'" ofl!oc'" IIir is pouboblc _ the fulur< _Ie bmef.., b<>dicd

.. lthm the pan .. ill ...... 10 tile ••• and iIs be

........-I rei"""'. ThcnfT)... _or.... rcpIxcd pwIisdercc<lpilcd. 1M ro<e!I of otw: daj'-I<Hby ......icing ofpropt<ty. pbno and equipncnl .. RCO£IlilCd" prof'l ...............

""5-12)-.5-IOrc~j)......

..... md"'" '1r~tndflll"".... ; ....

(h'll~p<..,ia.i<>.

l)qlr«i...... is ••kul>lt."d "",r the <lcprttiablo amo<IDl.... hichi' the ros1 <>f an 1. or <>thcr amount ",l,,,,itult."d rQl" =1.less its residual ••1 Ikpr«iation is n...."I'1ilCd in pror.t ork>ss "" a ..rolgln.li"" basi, IWCf the oSlimalod uscful li,,« 01

.ll<h pan of III it"'" of l"'OI""1y. planl and "'lulpm"n. ,i"""thi, mQSI .k>SI<lj· ...flea. lhe o~"""led pill...... of ronsumpliMof the ful.... ccmomic bener.........bodled in lhe 1Me1. Leased.......... doprcciacd ...... "" >/loner of tho .... lerm andIhd< u<cfulll.·cj ...k:s$. is reasonablj <'Cftain duo "" f_"ill ....... ""nenNp by the ..... of"" 1<_ I<nL Und is _--

rec<>piml .. pmfit <Jt lou 10 otw: no..... otw: pin re<~ a

pm'''''' ir"paim..'" 1of6 .... otw: Sf'"C.fle 1INJ"'I1). "id1 any~pm........iml"""'" """'prcIoenso.c........,and...lom'<'d in .. re<"IIIIal_ """"" io <qWl). No) k>oo is~ "' tnd prc:seaIcd ..otw: re< ~·c .. «fM)' IQ the 0'" duo • ___

load pm""'" '"'"" _I'd .. the re<....... n:scn"...... IQ doe >pecific prtIIIt<I)' ~. t k>oo~ - ,. .j" ....,., til' ......

T1Ilt F_ .,."...---.;.~fiaanc... 1iolIilibcs:... -' ~'IIblcs. SudI f_ IiatJililift ~n>:<lpiftd ..,oaIly. r- ....... pills JIl]o dftat)' ..~ ....nn-t_ lDItS.~ 10 Mial -.'_ me..,f_... 1.....liI.., _ ~ • _iml COlol ...... lIII:dl«.",c __ moth>d..

CO\.l 1n<;1......-s o~(><fIdiIUn;: In.1 is dirooly allrib,".blc 10 lhelIC'IulsiliM or Ill< ",...1. The 00Sl or sclf-con"""'t«! ...«.11

in<;ludos thl: <<lSI of m..cri.ls and dllttl labor. on}' ..her 000lli

din:c1ly allribulalllt to bringing the ISSeI' 10 ...minB«nIiliM fIN" thdo.. intended ..... the rosI' of di_llinl and"""",inl the iI...., IIOd I'eSl<Jrinv; the sile on ..hich they art

Ioealcd. tnd capilalilcd botroI<ine C"", olloO ...yincko:lc ,....f from Oihct "",,,,,,d .sr.,. inc<>me of anyp,n .. Iouon il)~ns/I hcdF>ofr-lpaomneypurch-. of~ and equiptIWN. ""'clwulo0ןII<.... _ OS inlep3l 10 the l"unclionalily of lIII: m.e.l.. ISQlIiIaIiftd .. pwIofduo equ...-.

1M F dc"""lP'.... a fmandal 1.....lil)· ..hnl iIscon oblip:__ diodufgcd ... C&'I«lkd .,.,......

I _ ... Iiabil~~ offset IIOd _

",.".--.;1 .... d ••"., off_iaI """""" ..heft. IIOd 00'IIy...... .... Fund .... ItpI ri&fll '" om.:. dIo< _ -'

...... rllher 10 _It on ..... bMi< ... 10 n:oIiw .....-'_It.. ~hly t U$ly.

c:oa-lIId ..........~ of.. __ ofpropm)............ ·1 • .., __ by __......._cds rr-diJpmaI the ...,.. _ of~.........",,' ,. -.d rcwpiml nee ..,."., oth<t -..- ..prof. or Jo-. re<"31ucd .., sold. .... _..,

incloo.led .. the re<"3 mcn'c _rc...d to maincd-....

\1........... of.. _ of 1""1""'>'......... 1'qO'. • ,,",C

diiffcmlt -'olIn'<$,. ...., ... • ...d for ..~ ....t : lofpnJllelty ,_.

(f) " ...rty 4 E".ipmnl(I) Rft<Ol(IIiI~ , .........

ItanS 0( propmy. pbnl IIOd <q~ipmmt ....~ 01 COOl10>6 ,""",ul>led llqnci.. iM IIOd ,""c"",ul.l<d nnpoilmClll....

(II) 1tt<1o»lIln'IMIo.. Io...I_.. .........,'

W,,"n tile '* of a lINJ"'I1y cl>an@cs ,......" ........«<:oP«ll<>ir"""""""'1 proflC'I1y. the propcny l< rc-rnc:asurnl '" fa... ~al...""" n....~ifocd .. In"C'SImrnl propmy. Pmpctt). thal i. heinl<""'1""'10<1 for ful"", u'" as im",,"""'t propony iSl«<lUnlodfor .1 rai, .aloo, Any gain ...i,inB 00 re--moasun;:,"olll is


.. property. planl and ""oipm.n,. ilS fair "al"" al lho dalc 01""'I...i(,"a'"'" b<:<:<Im<:< i1< ,,0<, f'" S<lb«:qU<"1l' ""coon,ing.

(bl Imp.irn,.n'

(I) Finonti.1 ."." \indndln~r«.i".bl"l1\ f,nandal assol 00l "atriod al fair "al"" 'hrouw. prof'l '" lossi. as<e«cd at eaoh roporIing dOle to <k1<:rmine ,,'h<."lller 1lIo'" i.objc<1iw c"idencc 'h" it i. impaiml. A f,,"""'i'l :1«<' isimpai"'d if <>hj,..'i,'••,·idcn<. irnlicll1<> ,hal' 1_ c,..n' has0«"m.'<I aO... Ih. inlli,l ",,,og.nilion of 'ho , ..«I, and lhal 'holoss ",..m h:ld • ""g.li"" "IT""I on lho O<Iimatoo fo,o", cashOo..'s "rlh.llISS<llhat .an be «limatod ",Iiably,

Obj",,'i,.. ."ide..... ,hat fin"""i,1 ass<" (i""lnding <qui'y"""un'ics) "'" impaiml "an inclnde d.f,,,1t or d.linqu.ncy by• Ilcblor, restrucl".ing ofan amoonl d"" 10 'ho Forni on l<:rmslhal"'" Fund ,,""Id 00l """'idor OIh...,.,iso, indi.a,ions lh., aIlcbl'" '" i......, "'ill c,,'er bankruptcy. "'" di<appc"""",c of .."",i,.. mmel for, .....\II'i'y In addition. for an i""CS1m,...' in'n <q"ily sec",i1Y,' .ignirl".m or "",longed dc<li .... in i,. rai."al"" helow ilS cost is obj<Clive evidcn<e of impainnenl,

n..., Fund """,ide.. evide""'" of imflllinncn' f", .....ei,·,bk.and held-Io-m.,".i'y in"e"o,ent sec",iti.,. ., bOIh a Sll"Ci(,,,ass<1 and rollceli"e bel. 1\11 individ",lIy .igniHean,""'.i,·abl<:< and hdd.,o-m3lun,y i"",."menl ....."'i'ies arc1ISS<<S<d r", Sll"Cif,. impaim'<1I'_ 1\11 indi,-id",,-lIy .igniH.an,"",ei",ble.. and hold"o-m,wn'}' in,-."........, ...".i,ies f""ndlIOI to he spe<i(,c,lIy impaired .'" lhen roll"",;"ely........oofor any in,painnelll th.. h.. be<:n i""um.'<l bul nO! )'01idcn'iHcd. Recei,·abl., and held.lo-mal"rily in'·CS1m.nlsec"ri,i", 'ha' a", lIOI individ",,-lIy signiHcant arc rollcrli"dy.........,] f", impairm''''1 by G"",ping togelhcr " ..ei,'abk. and

hold-lo-ma"'''ty ill","'molll sec"nlies "'ilh similar nskeh.....t...Sli«.

In a<>cssing roll«1i,-c impaifID<1l' the FWKI USC$ hiSlorioalI"'nd' of tho """'abili'y of defa"ll. liming of "",o"cries andlhe a""",nl of loss i""ulTctl. adj"SIctl for management',jodgmcnl .. 10 "hether c"fTCtll crooomie and credilrondi'ions an: ""'h th" the ""I"al losses arc likely '0 begrcaler '" 1<<< ,h.. ,,,gg,.,,cd bj' bi"",i<3ll",nd•.

I\n impaim'ent loss in resp....t of. Iin"""ial aSSC1 me",,,,,,d "amoni,cd cOS! i. eakulalcd .. lhe dilTcrence hel"'ccn itseart)'in~ anlOUnt and "'" I"'.sont "I"" of the eSlimated f"lu'"cash nOW" diSOOllnlcd 3' ,he """,'. original clT«li,'c in'c.<>'tat<_ lo<ses arc 'crogni,.c;j in "",iiI or I"", and ",11«lcd in anallow"""c accounl again" ""'oivobles, Inle"," 00 lhcin,paired ""'" cominlles to be recognized Ih"",w. Ih<:Un" inding of lho di""""n1. Wb.., a subscqn<nl c'·"'1 ""uses

tho "",,,"n' of ;n,pairment 10>;; 10 dc<"'asc. lb. tlcc",asc inimp.innen,l"", is ""'crs«llh""'gb prolil '" loss.

Impainnent 10..... on ",'.il,bk·for-,.Ic i"".,'mcoI ...",iti...'"" n:cog.ni/ctl by lransferring Ih. cu",ul.li.-. loss Ihal hasbeen rocogni,cd in OIhe. comprehell.i'·e ineon,c. andp"",c,llcd in ,he fair '-01"" n..,,,,,·,, ill "'I"i,y, '0 "",Ht '" los,.11K: rumulati,.. I"", lhal " ",mo"cd from OIhercompr<hcnsi,-c income and " ..ogni/ctl in profi' or loss i' 'hodifT"""",e hel"'...." Ih. ""qui.ilion e<>Sol ....1 of any principalrepayment and "nlO<1i"'lion. and the currenl fai. "al"", Ic"any impaim'''''t loss I"'c,'ioo.ly n:cogni,cd in "",H' or loss.Chang.. in impairmen' provi'ion, ,nriootobl< '0 ,i"", valLI<arc ",ncrlcd as • e<rnpoocn' of inlCfCS1 income,

If. in I ""hscq""'" period. tho fair ,·,1"" of all impairedavailabl.. f",·..le dcb< secLlti,l' i"""""'" and ,he inc...... canbe ",I..cd Mjce'i,'ely to an cvenl occ"rring .fler ,heimpairm''''1 loss was 'ec<>gni'cd in "",fi' '" loss.. ,h, Iheimpairmenl loss i' ""'..-.cd. "ilh tho an""'"1 of lhe ""· 1rccosni,,ed in "",(,1 or loss, lIowc"ct. a"y S<lbocq"""t""overy ill ,he f.ir ".1"" of an ill,pai....,] a,·,il.bl.·for·sal<equi'y scr"'ity i' " ..og.ni,cd in ",bc••","prehrnsi,.. incomc.

(ii) No"·nn.nei"I ...."11K: clln)'ing am""n" of ,he 1',,00', non·(",aneial as""s. QIhc.

tlt'o in" ...lmcnt property, io,""ntori<:s and defen-ctl to> assets,a", "'''ic'''ed 01 e""h ",ponillg dale to de'cm1inc "·helho'lhe,,,i' any indi••lion of impainncn', If any ""'h indication c,iSlS.then Ihe """,,', fcco,..rable amoonl i' ",'imatod, r",good" ill, and inlangible asSOlS Ihal h..,. indc(,nile ""'f"IIi"es'" lhat arc lIOI j'CI a,'ailablc for "s<. the recoverable amonnl i.""imalcd cach ycar aI lhc ..mc lim"

1\11 impairmcnt 1= i' rocogni,..d if Ihe c3l1)'ing ""","nl of ....«t .,cocds ilS <Slim.I,..:! "",oVI:I".ble amounl, Imp.irmenllosses are recogni,cd i" "",Ht or loss. I\n imp.inncnl loss in"'Sll"C1 of good"'i1I i. nOI ",...rs«l. In """,..t of "'her ass<1..impairmen' losses .crogni',ed in prior period, a", a"""cd ..each roporIing d,,,. r", any i,,"icalions tha' lhe loss h..dc<"'ase<lor 00 Ionge. e,i"•. I\n impainnenl loss is ",,'..-.cdif lh= has be<:n , "bange in tho eSlimaies Wictl '0 de.."rni""the ."<:<,.,-,,tabl< ""","n', I\n impairment"'" i••",'crscd 001)"to lhe • .,enl,hal the aSS<l', clln)'ing am,,"II' 00.. JIOI ,,_«:«:<1tho ealT}'i'lg '''',,"''1 Ihal would hO"c been delcnnincd. n,1 ofdeprc<:ialion or anlO<1i'..lion. if on i"'pairmenl I"", had beenrccog.ni'cd.

Leaden in SUI,enonnn"lion IJ~


(il Em"lo}'" ~n.ti, pi..."(I) i.l<tin"" <"nlrlb",lon "I~n'

The: Fund i' a dotinod c""tribu,i"" pi", and as pan of iI' post_=ploy"""'t benefll plan for it> ernplo)...." tile Fand poysf,,"" "",,'ribu'i"", into 'he Fund. The: fund ha, no legal orconSlruclivo obli&'1"'" to pa)' fu"her ar'"",." to it>.mploy=- The: obli8"'i"'" for con,ribu,ion, an: n:cognilCd ason ",,,ploy« be""til e.\ptnsc I" prof'l or loss In "'" period,during "hieh """,,icc< arc rendere-d by =ployccs,

(ii) O,h•• Io.g·,o<", o"'plo)'" ~n.ti"

The Fund', OOllgal;"" in "'Spt<t of l""g_I."" .mploy..bonef,lS "'her lhan p",,,;"" plan' is iIIc amounl of bonef'l Iholen,ploye~ have .arnOO in ""urn for thei' "''''icc in the rUfn:n'and prior periods 3$ required by 1,1", Thol beneli' is aceruc<l.ach pe,iod and the inc"'''''' taken ,,, proli' and loss "",oun"

(Iii) Sh.,,-.. ,m em"lo)'n, ••, bln.tiISShor\·'<nn empk>}'C'C b<-ndi' obliga,i"", an: n>c",.,OO "" anundiscoun'oo basis.nd arc e,pensed 3$ I~ rd",ed sen'iec I,"",v"ie'll,

1\ liobilily is n:cognilod for lhe """",n, e,pew:" t" be paOlunder 'ho,....""" cash """U' or profll_sharing plan. if tile Fundhas • pre",,"' 1e8"1 or e"""rue,i,'e obllg","'" 10 pa)' 'iii,•""",nl lIS a rosul, of p", ........ icc 1"O'idc<l b)' the emplo)""',and tl>< OOli8"li"" can be CSlimalod ",Iiably,

(jI I'ro,'8;"n.1\ pro"i.ion i. "-,,,ogni,...-d If, as • ,..... 1' of. pas, e,'c..", ,heFund h." prrscn'Ie8"1 or """"ruclivo OOli8"t"'" ,h.. can beOSlim>tod ",Ii.bl)'. and it i. probable llial an ""tnow 01""""""'ic bcncf'" "ill lit required 10 SCllle lho obli8"t;"",f>r<wision' at<: de..erminctl by di",,,,,nling the ex""",od fu'u'"ea>h flo", at • pro-"" mle th.1 ",nee" currenl n,ark"

as"'.....""" of 'he 'ime "alue of mone'}' and the 'isk' sr«:ilic10 the liability, The "n"indi"ll "fthe discount i, n:cognilCd asf,nance eOSl,

(k) !-lewn".R.,''''''''' i' n:cor<!cd "" an acerual Nsis, To lho e"""l in"hieh it i' probable IIi.ltlle «anomic bencfl", ,,111 !lo,,"o ,he'-und and tile revenue ean be ",Ii.bl}' measured, ",,'cnue is...",ogn;a'd, n.c following n:coll"il;"" "ri'e,i. ",I..", 10 'hedilTe",,,, ""·""..... lhe Fund has n:cognilCd,

Di.-idt.",} 'Cl'f!nU"Re,'cnue f,orn di,'ide ols I. "",ognia-d on tile <bll" ,he sh.res.... qUOled .,-di"ide and if"'" =i,od at bal.....e date, i,"'n....lod in ,he S",'en>cnt of Fin••d.1 I'osilion as •n:ceiv'able,

/"'","', ""'f!"'1<Re".."" "" money markel .nd Ii"'" inl""''' ..... u'i'i"" i."",ognilod using the elT"",i"e im.",,, ",t. m<:1hod. if nol

rccei,'cd :It balance <!a,., is ",nee,ed In tile Sl3tcm",,' offmanei.1 posi'ion as a "",ei".ble.

.1101"''''''111 in "'" """,tel ,,,,I,,,, '4/II""-SI",e""Changes in lhe nel m",k" ".1"" ofin"estmenl' a", rocogniledlIS income and arc dele""in"" as the dilTe"-'lICC betw"'... ,he

"'" mark" ".1"" al year end '" e"",idenlion 'ee"I,''''' lif ""Iddu,ing 'hc )-car) and tile ne' marke' "alue as aI the prior yeO'.nd or rosl (iftl>< in"':Slm""l "OS ocquired during Ih. period).

.110'"'''''''' jll '1<1 """tcl ""I". '4J"'"",ci<llliabifjlk.Changes in iIIc "'" m.ok.. ".1"" of tinanci.1 li.bili'ie! arc'eeog,ni,,'11 as income (or ",pcnse) and ""' dcto""incd as thedilT""""", betw",," the ..I marlc.. ,,,I,,,, 01 year .nd orcon,iilcral;"" paid (if sellied during iIIc year) and lhe n.lmane' ,'alll< as ,he prior )"or end or 3nlOlJnl originallyineum:<! (if ,he linanci.1 li.bililies "'" ineurm! du'ing ,heperiod)

/1CIII

!-len, from proJICl1)' i' rccogni,od in """ordanc. Wilh tile r':n,ol.g"",ment on an .,:<"",,1 b••i•.

II) [,pcn..,.

fw, Coo,,,,;-s,i,,,, ,,,,,I o,he• .:r!"",-s",Fcc", Co"'n,i,,;'n .nd olbe., expense.. Ole "--<"gni/~-d inpmf" '" 10" '>n an ace"",,1 basi"

(m) In .....m.'n

I""om" ,"x .xpc"'", comprises "u""n' and d.f<1Tod ""CU""nl lax and dof.,..,-od lax ""' n:cog,nilod in prof" or I"".,cepl 10 lho eXlcnl lh.. II ",Ioles In a busi""'" combi,,"",", orilemS ""'ogoi"--d di""'lly in equit)' or in othe' comprehenslvc

'""ome.Curren' tax I, ,he •.,,,,,,,10.1 ",-, payablt or n:cei,'able "" tho,o"ble Income or loss for tile lea" u,lng tax ",'c, ....,00 '"subs'anli,'dy ",,""'ed al ,he rcponing date, and any adjustmc...'

to lax p'j"blc in """"'" of p""'iou' y••.",IJcferm! lax is ",cognilCd i. rcspc<:1 of t.mp"",,)' dilTe"'IIC""be1"'CC'" tho eafl)'ing an",,,nts of "''''" and liabilities forflnanclol n-poning JIIUllO'C' ond tile """",nts used for ",-,alion

I"'rpnscs. Ikf<1T"" ..., i, "'" rccogni'ed for "'" following'en,por;llj' dilT"",nc.., ,he ini,i.1 "-,<<>gnili"" of as:;c'lS orli.bililies in a "an...."," Ihal is noI • busi..", combin.. ionand tIIa! alTee....ither """""nting nor " ..b., protit or 10M.and diff"'"n"'" ",I'ling 10 in"CSlJI,en" in 'ubsidiaries andjulnlly e"",,,,II"" "",iti.. '0 ,he eXl"""h" I, I, probable tIIal,hey" iii nnt ""'~ in the fon......"'.ble fUIU"',

In addill"". dofcm-d '0' i. IlOl '«:ogni,ctl for 'axabi"''''''por;llj' dilTer<nccs arising,," the Ini'ial """'l\IIi'ioo orgood"'ill, Ikfem..'d ...' i. me,",u,"" aI 'he tax mi., Ihal arc.,,,,,,,10.1 'n be .ppli,'d 10 ,emporary dirr.",ncn "hen lhey

Leaden in SUllen"nuot;,," 136

8rn<I~c

I•~~

~

!I

•,;

lIlt'·P ;'!".q''.:f .'.s-. ""1;'11.· .. i1i ai, o~,.til P P~l'~"[

i.H~! ~~: d !l~Jllf-llI ;;i:e,~a~~;r

ff~dt ~~fr~hlfH"~ h q '·rFp~lr lI!.;~'H;p~.i I'Ht!~)isiift i l-fil~~[f!" r .' !·-jffl

::tlarr.a~ 10 i lf ;1g.:l..l;rldl; ~.I!id,

.-s

7-

iJlr~lli~i!· ~t·[tli·f

1't'[I!'l,d ... j'U,J r~ 1.~.I~f·t' r."l"f·p···t,· P'!".i~li~f~i,li ~~III l~

>

Ili:J'li!i" !I~l~.l,~~ .• ,frt If·,·t l~! •. r'.t'l '.·r~'!:

I !~f:ll' '1Ift~11P1 1',U I Prhl,ls'~ ~[ ! ·f]'lr

i.f ••II". ,ff!I~!?

illl;liil lifll:f ·!,[Jlr tilrilllll~ illii'.I'H·~" •. l.l ·[1 t l h.p~ i, ·n'~t!'f[l! "l1tt Il, .•f ~a·l·lil~J·!1 If I:

1";9-; ~ .. i,~ III ~ •. J ~Il' i;;;l~ '"II•"'[f'; r[~.,! .[ I! 'I,a'''!' q.'.1, ]fl f.· •••.• l·ll If.' f' i , •.t'S I ! I l . ., l' I l • f'rl' II'

I: ; II"·.·.··r i"J' ft·, ~·llf .,f~:Pth ,tLt~ hill !fl;h[!~ hI![il l , fl tl " ]'1'1 f~ll~I~:! II.t•.. ~. f ••• f !l~. fij'f II r.

E!~i~~t;l·~~i'ii·~·i $! "'f~ tl ~

.!I~d~[n

WHI~ljlg1~,l,ii-ts_"i!::l ,Q~

"' .. ~ iI ..

{if[!i;i[~~~,,<,I.o~ """"Ill.... iQ.~ .. a.- lI"l~

~~t~!! ,lf~.r!'"" -"- '<!'!::. .. oi;rii·...,:; j'<$ !It:l-. :I~h'~'~~:·~1~~11~ if ~

!<!;."_." -~ 1<. ~

[Ii;~ I I5' 3. So:; 11 ...:: ~ ~l~_[".- 3: ;ol":> is: ::lIf ~ _.a~-:ll_ _ "

a.~!1

i~ ,~ i ~~. " f!.. ,

~

3••

1•,f..,


~. Finan<iol ri,k mon0l:"m~n'

Th~ l'ond has ex"""ore to !he fono"inS ri'ks from il< 0""' offin.""ial in'!JUm<n~

Cn.'Ili'ri'"I.iquidi'yri,kMa,hi n,k0r';m,;""'al ri'k

Thi' ""'" p,"",nlS inIOOl\.tioo obou"ho Fund'•••po'u," I<>

...h "f'lI< .ho", risks. 'ho Fu"d'. ohjt""i""•. p"h.i., ."dpro<.""'" for ""'",onng and m.nas,ns risk. and tho I",""'.man.g,"fJ>CfI' of e"l''''1. Funoc' quanlito' i,'. di.cI""""" .,.i""lU<kd IhrouBhoo' ,,,,,,", 'i n.""i.l , ""cn>enl>,

Ri'k mana~"mcnl fnomc"'urkTho Boa,d of 1)in...,I"", "flho T",,''''' """,p,my "os o>'<rlliln:sponarhility fo' 'hc ,.".hli,hn"",,, ano:I o,-.n;ighl ofthc Fund',ri,k '"on0S"'>en1 fran",,,'ork,·n.: lloord has ."ahli>hcd theIIOOi,aotl.",u,,,,m,,,,,, C",,,mi,,,,,,. "'hich i' n.'>I""',ibl< ford....'ew".ng and n"",i'oring ,n..: Fond', risk n'''''''g,"",,:n'pol;';'" Th< ""mmin« 1c"JH'f1'l n:gularly ,,, ,hi: Hoanl ofTru,,,.., .o"'p.ny "" ilS ,cli"i,i,..

lh~ I'll""', rIsk ",.nagen"'n' pol;'i,,> on: <:s'ahhshod '0Rknlrfy ,,00 arl3lysc !hi: "sks f""N by !hi: Fund. to sc,approprial. ri.k li",i" 000 ron"ol>. and to ,non;'", ri"" aoo

adhcn....... u, h'''i'', Ri,k """",g."""" pohci"" a"d .y""',,~'

a,. n:",",,','Il reBularly 10 ",n""l '''"'''B.' in market ,""diti"""and 'Iu: Fu""'s ac1i'·i'ics...."" Fund. ,hr""gh;1S 'rII,,,ing ar-.Jn....g-">enl "andanls ano:I ~u,. •. a;n" '0 do.·,-elop ad, .. ,pli 'Il and ron'lruC,i,'. con"ol en""",n",'" in wh;eh all."'ploy u"d....t"'od tl>cir mi., and ohltga'ion,.

TIu: lJoord ofnin...,'''''' of 'Iu: 'Ii"u""" ."mpany "".r'S<.-CS howmanaB<m<nl moo,"'" romplia""e ,,;,h thc Fund'. ,;"k ",anage'"'''' polici., and p">«:dun.... ami I",i."", lho adc<jUaC}" oflhe ,i,k ""I"g.'''''''' fra"",w"rk in rda'io" ,,, the "",,, fa..'<Iby ,Iu: F"nd,

(I) C..di'ri.kCINi, risk i. ,he risk of finar.ciallos.' I<> the Fu"d if.oo>'""",r.,. """"'crpony ,,, a f,""""ial i,,"runlCnt fail' tom,:,,' i,> '"""'TaO,,,,,1 obIiga'ions. and arises p.-i""ipally f,OIIlthe Fuoo', """",.ble, from ruslOlllC" 000 i",-...tmcn'",<ur"i",.

Trodc ...11 "lh.. "'<tis'ahle.Trade ano:I o'her """i,,"bles rda'" mainly 10 toc I'und', " ...talrkbIor>. ClISton",,, 'ha' aro graded as "high ri,k" a,. placedon a "''''''''N <o>'on",r Ii.. a"d ,,,,,,,i'or,'Il by 'ho I'mpcrtyMa""gc..-s.nd Manag.,'''''1t oft"" l'und.

'Ihc Fwrd ""'abl1.I,,.. an al",wa""o fOl impaimlCflllhaln.'I'''"SCIllS it> ""imale "fi""tnl.'Il 10"", i" ICSJI"Cl of''''''''

al>d "'her "",.i".hl., ami i",·,,>""""". Th< main '"""'JlO'"'""of thIS all<><>'""",, a,,, •SJlC<:,f,. 10" «~nl"'-"","'h.,rcl.,,,, '";nd",idu.lly ,ign;fi"an' o~POS""'"In'·..."'.. !>

lhc Fu'rd I;mi" its «POSU'" t" credit risk hy in,·",'i"g ,",Iy i"li..tuid "",uri'i", a"d 'OIly w;'h o"u"''''l'''''i., lhat haw a high",,'<lit rII'i,,!t- Man.~on""TI1 IIO'iwly "'o'u,"'" ,·"..tlt ,uli"g. sndg,,,en 'ha' ,he 1'uoo only ha< i",....,'Il i" ...urili", with h'gh

"''Ilit "'''''g>. managcm<'" do<> not ''XI'''''' any """"1,'IfI""YI<> fail t" ,,,,,,,I It. oblill'" inus,

Gu...n""'lhc Fund', policy i, 10 I"",'idc financial g"""","'''' only '0wholly..,"'1Cd ,uh,;diaric•. lit 31 Dcc,",,"'-, WI 0 noguam""". w". OUlS'aJodi"g (2Q09: llOIlC),

(ii) Liquidil)' riskLiqu;dity risk is 'h< risk lhat the Fuoo will rn<"""I'"f diflicul'yin ,,,,,,,'ing the ""lig.'i""••""""ia'od "'ith i~, linanei.1li.hihli", tha' nr" ....ItIN by ddi":m,g .ash or IIIIOIh,,f,,,.,,,,;.1 a_1. The Fund', ""","""h '" ","""ging liqu,dlty is10 en,un:. as far a. JIO"Sible. lhal ;, ,,·i1l alway, ha", .nflici...1

'i..tuldity I<> '''''''' its li.h,lili", "hen due. u"der hoIh "",,,,.1Ol>d str,,>,,..t «">di,i",,.. withoo' ineumoB ona"«ptahle 10.,,,,0.- "sk",g ....m.ge '0 th" r....rl's "-pu,.,;o,,.

Tl'1';'ally the Fund enson... 'hal it ha., somc;'nt cash on

do."""od I<> '''''''' ''''I''"ted "p',ralional .~JlCIt"'S fl. 0 1".,;00 of90 ....y>. ,,,cludi,,g the ....""oi"g of"'l"'Yn"'nl< of n"""bcrs"" I.""".. "';,hdrll\\'al. and lo.n.: tli" <~clr.rdc:; the 1""0n".1;"'I'""t of c~I,.m< c;n:u,lbIa""e, that can",. ","""",bly h<I""di,,,,>!. _h os nalor.1 di"','....

(iii) M.rk., riskM.rkct risk i, ,he ri,k lhat c"",,ge>;n markct pric",> "",h a,f"""gn ,'X,,,",,g. ra"... ;nt",..t rat", aoo ''qUlty f"""'" willaIT""llho Fu"d'. i""'",'" or lho "aloo "f it> ""Iding, off,,,",,,,;.1 ''''''''''IC''t.. TIn: ubjcclr"< of n""k,i rIsk'''''''''l"'n''...' i. '0 n""'.l"' and conlml ma,k", risk e~posllll."

withi" ..e,'ptobk paroune"-",,, while opt;",;,ing ,.... mum,

(i,·) Oper.,I"ool risk0r';rlltional ",k IS ,n..: n<l: ofdi,,"'1 or indi"..", loss ..isingfro'" a w,de ""';<ly ofc.u;o. a""",ialed w;,h toc Fund',~.l"'rsonncl.l""hnol"l!Yano:I ,,,tr.struclure. 000 from.".m.1 r..,o.-....~cr tha" ucdi'. ",.rkel ..od liqoidi,y 'i'h""'h .s 'ho;o ari.;nB from kg.1 .nd regulatory ""luire"".""and B",,-mlly ""'I'IN ".n....nI' "f""""",I~ "'--ha,·;"""r.

Le.d".. in Sul>...."nu.tion 13M


The Fw>d's objmi,c IS l() m:map: """,,"ionaJ risl.so IS 10""Ian« me,a...,~ offinanl'ial k>ssn and dam,. 10 'IYFund's ",puwioo "'lIh 0'0-"",11 ro>l ctr«1i.~ and 10a...,id «NI'ro! procrd..u .ha. n:oIria 'Mia.,.." andanli\',')'.

The ""mary n:sponsibilo.)' for Ihc dc>"Iopnml ....trnp&emmwion of "",urols 10 0lIIknss opmo!""",1 """ ..lI5Sipai 10 iCfOlOO manaF'M"l. Thos ""IflDO'Siblhl)' "

SI4'fIOI1fOd by Ihc dc>dop"... of..."",11 Fund otandard< forIhc~ of.......iodal rnI: .. Ihc l'ollo'Ol..._:• """,,"""""I> for ~'"OjWialc .... 'pl>OfI ofdull<:$,-Iadiols die .4pc:,olcN~ 01..............

• rtqIOlRMCftlJ for ohc _,I............ .-iIorl,. of-· ...,p-ec "otb~ """" Icpl """'...........•~ of..-ro!s 1"OOl"dum• r<qUOmnmto lOr Ihc pcnodoc: ofopnaoonaI

""'" l"a«d, .., ohc to. I. ) of.......... prtlC'eduoa10 0lIIknss ohc """ icIcOllJfOlld

• r<qUOmnmos lOr Ihc "'POfI1IlI ofopctaI.lOO'IIIIlosots..,~ b"an_

·dc\ Nof Ol:)'pa.,.

• _ pro(, dc\·<Iop".N·~ """--.iInls• ..... NllIpllDft, inchl.iolol~ ..~ 1hos IS

"trotl"".

Comp~ .. ,til ~._ ~ " SOIfIl'IOI1Cd by ,po"" .,.,," olPC:liodic "".....,. lOIOIlcnai;", byMar ,.,•• ,.. R'SUhs or.-mal ""....1 _ d~

"otb , Il,"I ,Ih ---.s sutwn~ to Ihc Audio.... R _ Common"" .... ""-d.

Capilli M..~_.rThe RownI's policy is 10 awnta", a SUOOIi apoW I:o:osc- SO as10 ..........,., """~. <T<'dioor .... man.ct ronf........, and 10...w,O 1m"", ....·.Iopol..' .. ollhc f""". Thc fI<lanl or[)in:aon mo"",o Ihc """'" on ap,laI. "h"", Ihc fon!dcfillt$ as n;sool, fn::>rn opmo!'''ll act"'i,,,,,, dhMlc:d by IOUImcmbon' <q~"y. The lloard of !>"w,ors ,Iso moni"'" rlY..,.·.1 ofom""""l0 'IS mcm""'"

The Iloanl ...,ks .0 ",.;n""n • bal;\Ol;C' b<-\,,''''''' .1It l"ghI:f""ums ancl rllt "",'on.,.., SlId _uri,)' Itfunkd by aloO<lnll.....,tal ,"",'""," 1lit r......."'''.... 10 """"I P"",IIW "',.....0....",,11)' a""'.., ",n.. _ and .. call no<>rxy .....k'" ...,,,,, In2010 I"" Fund ""um " 16,11)% onJ 0"''''''',n8 rak of 1''''(200\1: I'wid ""urn " 14 IeM. ond 0"""',"n8 ro", of 1S%).

T1'I<'r<' "m: "" changes in .1It Fund's"l'J'fOS"b to c"';llIlmanagem..... during tbc: ~.

The Fund is subJ«' 10 ,nr<:.-<$l <T<'dill"ll and """,,',nillTqui"""""" iml"'J5Cd by !he llard. or "- """"'C......,. and"" SupennnwoI_ Ml 2000

,. r.ndi.l:lI",,~""'''

nw,~"CfS""'l'c....ribulcd 10 r~ Fund duriq <hecunenl fill3lOcial ye>r • a me or ll,~'~ ollbc gross saam.:sorlllo:JK ca.,1o)fts ...1WI ,,-a.: lI,"lIoba, oldoc: FWld.(2009; 8.4%). ErnpIoytts romribuocd 10 ,be Fund dun.tIY ye>r at tIY nIC: of6.0'" orobe~s ",boy (200'): 6.0".).

Lcad~n in Su......nnuarlon 1J9


2. MOV.:~U:r'>T IN rAl~ VALVF.

TIIc realised gain from flnandal instrumelll5 al fair "al"" through profll Of I"" reprcscnl5 me dilTer""eel>cII\wn the rrJn,act;on price. Or the earry;ng a"'o"lll of a flllar'dal ill'lronICnl al lhe beginning of lheperiod, and its salcJseu!cnlCnl price. The unrcali«d gain ",presents the dilTel'l'1J(e betwCC1llhe lransacli"nprice. or carrying .n"'''1Il of. flnancial instrumenl .l the beginning of lhe period. and ils carrying amoUlll31 Ihe end of the pcrlod.

(0) M.....m.nl In nel markol ,'aluo ..rIn,·.. lmonts

All OmON/IIS "'" f!Xpr~..~d in K '000

1"'

In resP"<'1 lO lhose in'·...lmenl. I\<,ldal lhe end of the ye.rSh....,. in li"ed companiesShares in unlisted """,pani..

Unit> in inlemalionaltru.lsleashdepositsIn,·..'menl propefli..

In ""pen 1(1 Ihnsc in.·...lm""ts

rcali>ed d"rin~ the f.nancial }'earShares in listed companies

In,-..lmel\1 P"'l'C"i.,.,runli'l,>d.ompani<'slolher

,~,

Opera.ing Surplu, ror Ihe )-•• rhas I>«n arrh-ed .1 ancr

charging I (.....dlllng) lhorollo"'in~ item,

All "mQ/mls "'" ~-xpr.5S.din K '000

(Profll) , Loss on sale of assets

ALldi'"", Remuneralion - Aud;1Audi,,,,,, Remuneralion - T"ali<m

Alldilors Rcn,,,ncrallon _ Other

"'"'''''Legal Expe-nses

2010

156.702(6,465)

0.863)

32,79)

179.165

26.717

'"206,445

21110

(17)

'""'

"

'"'"54,478

14.0705.114

50.598

124),9

21.193

21.193

14),452

'"'"

233

"

3. £MPLO\'F.F.S

The n"mbe, of f"lhim. cmployC('S al the end oflhe year was 100 (2009: 100).

Leade.... in SUj>crannuliion 140


(a/Income Tn .:'f'<'nse

Cum:m Ta.cCh.nge in dcferr,'<l tax,,,,

I""ome I.x e.cpense

2010

7,849

6,1lJ

1.1,962

'""12,092

( 194)

11,898

T1Ic I'fima facie la, charge on Ihe profit for lhe year i, ",co""ilcd 10 lhe I"" cxpcn", as folio".",

Accouming prof;1 before lax

Tax on the I'f0fol for lhe year al 25%Taxation em,el ofperma""nl dim:,,:ne,,"

-Non deductible ilem,

-Non Ia..able ;Iems

Di,'idcnd rebale

N,~ dcfc'ffi.'<l ta. li.bilily rccogni...'<l

O....r I'f0,'i,ioo in I'rior year

(h) Income Tn Payable

Opcraling balance of i"come lax rayablcCUfTCTIt la, payable

Re'-crsal of WilT C,,'<lil

P.ymenl during Ihe year

Ihlance of income laX ray.ble I (refundable)

308,657

6,339

(58,730)

\8,461)456

0.8(6)

lJ,%2

14,1 21

7,&4~

(6,929)

IS,04O

217,516

54.37'}

15.95 I

\53,267)(4,971)

(194)

I l.S9S

5,983

S,789

(65 I )14.121

(c) ncrerred Tn OalancesDeferred Ia> MSClS and difem.'<lla.. liabiliti"" al 3 I o...",...,bcr 201 0 arc .uributablc to the ilem, detailed in Ihe

lahl<.'$ below:

AIJ "mOl/nis "rc "",cu,-,} i~ K'/XX) 2010 ,,,."'..., liabilil)' Ne' ,~, Uahilil)' Net

Pmreny, Planl and I:qoiprn.,.", '''''' I"'" (54) (54)

Im'cslmenll'n:>pcny (10.990) (10,990) (9,96--1) (9.96--1)

Pro";si"", 276 276 '" '"Intcn:sl Rc..."i,·.ble (7,S7Sl (7,878\ (2,5S8) \2,5SS)

Nel la, assel./li.bililie. 276 (19,858) (19.S82) '" (12,606) (12.469)

Leaden in SUll.nlnnu.lion 141


S. GO"F:.KNMF:."T St:CURITlt:S ANI)OTllt:K LOANSAll umm;llIs "'" exl""~ss<~1i .. K '000 Ma'urity {Jr.

G',,"cmmen' I..""rib,:d S'ock 12Us. di"""".., "" Inscribed S'ockI'NG I'o".-er 6Southern lIiJlhland. Pro> (im'cmmcn'

(0) S,wereilO" Community Tr<:a,ury NOl< <IAirli",.. ofPNG Promissory NOl," 2

(b) Niugini N<>mintc N"'e< 4Pacific Rim Plan",i"",Ilor"",. piU"'Y 4AOAR (eJ< Shell) 4

(C) C""",p tl<:"el"l""'" <I(d) T..... ili R,'SOtl

NOles

~o,o

Yi.ld

12.10% 206.460(436)

9.95% 30.722

7.05t'. 125.0005.28% 25.000

11.75% 100.000

681% '.00<>681% 4.088

10.00% 13.9001.885

5iO.619

510.619

'""153.750(4.545)25.819

"15.000

100,00030.100

8,2501.885

]30.326(67)

3300259

(0) The scrm i, i>s""d by Ilk' T"'.."'un..' und<r lhe Tr~a,ury Bill Act ,,-,ins NOIional Capital Limik"d as Ih<:A8,."t. Re8istrar a"d holder "r the "",nics rai",d. The T,,-"osury flill i, 8uara"l",d by ,'''' Slate in line Wilh oilTllill, i"u,"" NASFUNlJ ~"n ci",'t'llh<: md ufth. 364 <lay p<:nud to .....dec·m ,'''' lJili or roHlhe Ilill 'WIT for• f,,"'Ik'f 12 m,,,"IIs.

(h) Tht NOles deriw from an Equily M""",i"'li"" C""l""'l between Nomi""es Niugi"i and MVll earning11.75~. inleresll'" plus. fmali<lllion f,... "" ,naturily 10. "" formula.

(e) Loan finance for the de,"eIOf'Tl1.nt of hQu,ing at 8 ""d 9 mile. I'M MOR."sby

(d) 1l>c 29% imeresl in Tawoli Rcson was fl"",,,-"ed by way of an ink....."'1 1'...... loan,

6. STATE GRANT

{_I In De«mber 2000 the SO"emmenl passed the N'li"".1 P""'idenIFund (Finaneial ReeonSlruellon) Act 2000.Und.... S«lioo ~. lhe State shall mal;e palmenlS 10 the FlIDd ofKI million commencing 31 May 2001 and

ending 28 Febnlary 20 16 indexed 10 the CI'!. A IOlal ofK22 million remains outstanding as .t 3 I December2010 (2009: K26 million).

The f.ir "alu. aSSCssrnrn' ofth. arno~nlOUl!tanding al the biolane.; da,e appro,imat", the carrying ,-al"" ofthe Slale Grant. Fair ,·.1"" was determined by discounting the finure cash flows based on • 10 year m""'ing

a'"C'I'llge or innalion talc and discount ral", based on inlerest rates npplieable for depo<its grealC1" than 12months.

(bl Malurily: 5 yearsCUtTenl Yield: 15.80%

'-"oden in SUj>e... nnultion 142


,. .:QU1T\' !NW.!>'M FJIo,.S lOW ,-Ali amOllllts expressed in K'OOO

'"Quo'O'd Sh.... _ nom..",ic... irli .... PNG .."" 13,O~0

Bonk of South P",ifo< Limi,,," 25<i.790 276.293City Phamu<y Umil<\1 )3.S811 21.432Cmli, C"'JlOr'Ilioo IYNG) Limit,," 84.082 70.644

382.852 387.l\lO(ii) Quolod Sh.rt> ,In,.m.a,ional

lIighiand' P",ifo< Limil,," S3.51 I SO.237LihirGold Limi,O'd 22.610M.=>;o Mininglimi',," i.240Now Ilr";n l'>lm Oil Limi,O'd 146.803 88.252Oil S.arth Limil<\1 110,146 8S,660Stoam>hips Tnodin8 Coml""'Y Limil,," 124.295 66.811

4:j·I.7SS 314,81S

(jill Unuu"ltd Sh..... " UnilO... m.lgam..O'd Pocbging Limit,," 8.921 .~

11orom. Pil\lo:<''Y ~,189

BMobik 12.198DolONeI' lid 10,512

(l>J IIcriuge ParI< IIOId 4~.960

lI"",i_,1'101 14,$., 1l,684

Nos"'.;."ioo ,,., Nasmol Limil«l 11\,718Notional C.pitll Ltd '00

(.'11 Paoifo< 11.1....."";:""" Units IS,070 IS,070Pon Seroic... limit,," ,,~ '"South I'..if", 1I",....0'Y limi,O<t S,854 3,570South r..if", f'<l<, Limit,," " "TO)'OI' T.....no (PNG) Limi,O<t U\lO I,ll SW...,poc 8""" (PNG) l.imitO<t 11,718 8,614

~17,64(I 14.J~$

Quo'''" Un", - In",nOlI...1.'1>,," In .......Kundu 1'101... 35.3

H43

1,0)$,<47 1l1O,O72

l.eoden in SUj><nonnultion 14)


g. NOTES TaTtlE EQUIT\'\'AlUATIONS

(a) Th" v.lna,i"" "''''hod<>l<>gy o[ the """Iui'y po,,!"olio " os [0110..."(i) 0'01<:<1 Slim"..: Tbc I"ice is ll<.'oemlly tile la" sale price II dose of b""i""" "f ,he ex"hange unlcs, the,e is a

highcr bid or I""", olT", on ,ha, my SlIbscqu....·n' ,,, ,he Ia'l sal" io "'~ic~ "ase the price of Ib< higher bid or"'...,,, oncr ...illl""""il. [","-.. ofliquidity and volume in .'" .1"" eoo,idcn'd in 'Wlic'li"" o[,~i. priocipk.

(ii) Tile excha"ge role: u.<c<I r", eoovr...ioo c< lhe;pol rd'" 4Uol..-d by lI.nk Sou,~ I'acifie Limit<.-d,Wf)!l(io.O.3llll7 (200'J. 0.4352).I'D/Killa 0.2S6S (200'J, 0.2422).SBJ)/Ki... 3.190S (200'): 3JJ9S).

(iii) U"'I,,,,,nJ shares: \'alu..'<1 at raif malkel 01' a" 01"'1131 ,,",is.1"lucr: 11])0 CO,pu.."'" Fioo""e (QL])) LId. I.i<.......·" No. 24SS n

,I/nh",/Q/og)': The maio "l<lhodologics in <Ict""ni";oll the valLl< orunlisl<.'d ClI"ities .,e ",,".lIy hosed onFu,u", M.iolainabl" r",miog<. I>ividt-nd Yields. Nt"I 'I',mllibl" Asset> or C."'f1o",. II "'PI"o,Jri"" to "uoside,all the above """holl< in .lTi,·inll.t. r." , ..I.."

(b) NolI'S 1o ,ifllific"u, n"li",'<I .....uily holdi"Jc<S

(iv) 11"';lag" l'ark limited is a hoIel ill Jlo"i""" Solo""", Isla,lds "wiled 60% by NASrUND, 1l<.'1ilall" 1'10/,1, •3,422 "l'" ""nUl........,i,,1 dcvdop<""'" is "llIY"cntly being """"'tuClC-d "n 'oc hold site Il<rilllg" P",k l.i",,,ed" .., I""vi,,,,,ly d."ifi..-d "tuk, in'''''S''''eo' p"'l"'"i....,

(v) Nos",d i, 100% owlK"d by NASFUND "od hulds til" Bums J'!Iilp propcnies in J'un Mo""by and 6J% "rM.;olalld 11"lding' - A diwfsif,,-d 'g<ic"hu[1l1 c",upaoy ","h inte",", in ehiekon I"oduc'~'" ""d p,,,,,,,,,,ing,eggs. llou, a,ld c,ocodile ski,lS. Nos",,,1 i. al"" Ihe I>oldillll "ompany f",. the """'trueti,,,\ of Bums l'hill' 11.1ISond Jdfc..-y I ["u'. Nos",cll.i",iled ",as pn:viowjy d ....ific'd und.:, iO"c>lnk."'1 pr"l"--rlics.

(vi) Price"'ato, hoI,scCoopc... a,e cumnlly ,ec"n'tructing lh" lCl:Oullts "od ""Illatiu,~,orlhe Paci!,,, llala"ce F"od(1'1lI) "n", the s",-,,,,,-,,,r,,1 "-"'10,..1"fthe in""'to....'" manager in 2008. NASFUJ<:I> i" 2008 coo"ni...ion..-d onind:l"--'nd.."" ,·.Illalio" rcpon 00 the PilE While Ihe "-'J'O't is pn.'die>lcd on • nuoll\Cf oros,umplioo., it 'w'"thOi ,''''''' i. ""'OpC "r"o,,,idcroble "I'I'"-,,,i.,;oo of ulti!> io the PUE This vic... is t>a",'<1 "" a salisf""tory'<:<''OII"ili.lioo by l'rice".."Th""",-Coopcrs "od" n:••",plioo ortl'ldiog io loc uoi ... We ""I"'<'llh;, 10 ""eor byJ"ne 20 11. Umil ,uch lime, 'he Bo.n! "'ill «.o,inll< to ,·.Iue the u"i" .t e""'.

(c) Equily i"'''''S'"lCob uW, S% "rthe nd as"'l v.lue of the Fuod.

BanI; Sooth Pacir,e LimilC<!New Britain Palm OillimilC<!Slcam.hip. Limilcd

11.6%6.6'Y.5.6'Y.

l.eaden in SUI>.no"nultion 144

9.• ) INVF.Sn":I'iT rllOprllTlrS. LAND ANI)rllOprllTY CO,\IPAl'ilrSAll an/mml< eJpre_~",fin K'()()()

P"'p<r1I..II,.ili,k AfI'I'l,,,,,nl<Chn,cr S, Apa""'.n"

I'c""eha,'en AflO"",en"lIamu Sugar I'ropo"i<oSol,"~", Apon",,,,,,,

'"G...hujo<i. S,,o<>rdons . Ca"",,,,,, lid

IPII & The P><""Y1I"',lie" lI.usAble Compu'ing Kokopolib'" Comp,,,i1lllLatAble ("ompu'ing MadmgIIble Compuling P<o<1 M.....by

ANZ IbusDeloi". To......lleri1age Par\; LidNASPUNllllous LacCity ("tn,« De,-.k>pm.." L,dl'on Mor<'Sby G..",,,,... &1>001

II""" P~i1p

~.

La".... lid

To.. II .....'",en' P.o!"'rl;"

hI Work In !'r<tRrns


lUIO

19.~00

9.050

7.62S

."3i,(I.I9

8.0708.036..~9.200

33,306

,~,..,lA8SS.8H

36.57098.377

lS.O%6.100

~O;l(l.l

17.271

2n.878

,,~

,~

S,7RlI >.6.lO

31.1.1163

lIill,ide Go""'..IPA H.... & fllC10ry1I ..·.li." lI.usSol W... IIfI'I'l"'''''''The Edge

lIesidel',ialCommelCi.1Comm.lCi.1R..iJen,i.1Resitlt",ial

12.2~3

~1.sOO

SJ.743

S.91330.95038.214lS,547

110/>84

424 S4i

(e) Non;s TO Tilt; PROPERTY V,\LUATIO.'<oiS

(i) All in"estmen' p.oper1ie. w.n:: ,·.IllC<l a1 Dceembcf 2010 by MI. leo Digari. ""gi<tem! ,'aluer No. 6S. Allpn>pcny were ,..IllC<l "' """kel, T1>e fair ,·.Iues a.. based "" "",ri:el \',Iues. being tIIc ..,inla,ed a.mu.' for,,'hich a propcr1Y could be cxchanged OIl the ""'c of 'he ,..lwIli"" be'ween • "'illing buyer.1Id • willing.. lIc. in an arm'. lenglh ''''n.....;on after proper mari:cling ,"'herein ,he panies had cach ac,ed knowledg..blyand ...-illingly.

(ii) WOO;n JII'OIlI"'SS i. v.lued .. COS"

(iii) Ci'y Cen,,,, Dc"eiopn",n" Ll<l i, owned 6S% by NASFUNlJ wil~ Iwo prin'"'y ...." being NCD(: 110...• nd Sum,unUl Com pie•• Cameroo Rd. Wa;gan;

(;v) lIill.Kle Gonlcl" ;, a SO'Y, join, ...."'u"" de,-c1opmenl ...-i'" Zenag Chicken, r<>r • lu<ury I7 "nil developn",",in Lac eUrTCnlly under eonSlrucli""

(\') The Edge Ltd i. owned 70'-' by Ni\SPUND wi,h lhe prim.ry ....' being ,he de'"c1op,ncn, of 63 apanmcnls0' lI.rbour C;ly. Pon Moresby

Leoden in SOllenonnull;"n 14~


(d} INVt:S'!'i\U:NT I'II.Ol't:RTY

All Omulmls are ",.pressed In K'OOO

I"'·esun,.." Property n","emenl i. """"",il"" as follows;

!I.I.nce., I Janu.I')'Mqu;' ition"S3I<'Tran.fer> from work io progres,

Nel eha"ge io f.;, ".Iuc

!I.lance ., 31 December

2010

313.863(44.243)1().l.711JV93

0107,124

'""182.().l(l

I2.7SS69.18649.880

313.863

w, I'ROPERn'. PLANT AND EQUlP,\IENT

All omm",ls lire express"d In K '000Laod '" Mo'o, 1'100' '" f'1"ur< & lind"Rulldlo~, Vthl.lo t:qolpm,o, Fllllo~, COo'I .....llnl\

To'ol

COS! o. d«n.od ,ostB.Ia~ 11 I !:lno,,,y 201l} 9.330 1.049 2.99$ 'U 1I0,6ti4 124,4H

AdOilioos "~, , 47.770 48,661

1l.,,'.Iu.uioo ofpropert),~" ""Tnmsfcr 10 ;n'-CSlrnCnt P'O'""'y (104.711) (104.711)

lJi""""l, (168) (7$2) (920)

B.I.~.t 31 I><=mbcf 2010 IO,26S ." 3.140 ". S3,7U 68.419

IHpr«l",ion ond In'poi.moo' 1.....

n.I""",., I J>Jluary 201(1 s12 2.102 m 2,899

[)q>m:;:I1;OO for ,I>< j'e.. '" '"" " '"lli""""l, ( Ill} (7SS) "'"B.I.~3t31I><=mbcf2010 W, 1.627 W 2.473

Corl)'io~ "0",00"A,31I><=mbo,2010 IO,26S ,W 1.S1J '" S3,7U 65.946- - - -All J.nu"y2010 9.330 417 '" '" 110.684 121.';-16- - - -ll>e C3f1)'ifljl .mounl< .r<: pr<scn,"" i" lhefinanci.I .....'.m.n" as fol""'.;

All omma"S lin! e-,pressed In K'OOO ZOIO '""W","" io J'N'Oli1"SS S3.7U 110.684Property pl.", ..-..J oquipmcn' 12,203 10.862Corl)'lo~ "mo"ol, (,$._' 111,546

'-"od.n in SUllenonnllotion 146


00. SUNOIW D.:DTOKS AND PK.:PA VMF.IIoTS 1010 '""All <JMOI,ms "re expre.s<~1 in K '000

Sundry deblors & rrepaymenlS 53,1l61 20,612

Honds and surldry deposilS '" nSlafThome ownership scheme and starrdebt"'" ''" ''"

54.167 20,789

00. SUNIlRV CRF.[)ITORS ANI) ACCRUAI.$ 2010 '""All "",m,,". ""<"'pre.sed in K '(J(K)

Sundry en:dilors and accrual, 1.834 2.923Rond, and ",pal'oble deposilS 319 '"

2.153 3.242

D. I'KOVISIONS FOR F.MI'I.OVn: H'TITI.F.M.::o.TSAll umo'''''' ure l'Xpre..cd in K'OOO 2010 '""P"wision fOf annuallea"e '" '"I'"",isi"" for long """ioe leaH '" ""

1.103 ""

14. R£S£RVr.SAll u",mlt/IS aN: exlIY'CSseJ in K'OOO

(.J AJSel ",,-aiDa, ion r......-.B.lanee.' I Jano"')"

5o'l'I\I$/ (denei'l "" ""-.loo,i,,n or p""",nicsS0'l'lus/ (ddiei'l on "·,·010.,i,,n or ;n.-cSlmentSDd,......-d ,a., on "'''.11....1;.,''Tronsfer 10 "'laincd profilSBalance al 31 o...'CCmbcr

(.,2010

6.001(,.001

6.093

""(1.000)

6,001

''''''6.1)93

6.093

1.241

4,852

6.093

The ",,,aluali,,,, .....,,,,e ,dmes 10 ,he ",,,.Iuat;on of pr'QPCny. plan, and <quip"",nl prior '0 ils",dassifiealiOfl as i,,,,eS(I11Cnl propeny.

'-"aden in SUllenonnoalion 147


IS. t:MI'LOYU: IJt:NHTr PLANS1'""I_O"'pl"y'n..nl benolits

"11>< fund <;<lntribu,es t<l ,he Nati<)ft31 SUf'\:r'3nnuat;on Fw>d for;ll <lun e"'ploy«s. The plan for general

c"1J1ployo:cs is a deli""d e","riboti'm tyf'\:. ul>l.,."by the Fund matches eontribu,ionst<l 'he lI:heme maoc

by employo:cs al a rate of HIO% of the cmployc,'s base salary. NAS~'UND employo:cs rccci,'c 10%

cmployor comriboli"" raieS. Employ« contribu,ion. arc based "" ,'ariOO! I"'"",ntagcs of their grosssabries. During 201 0 the Fund has C~l"'n,,">d K3J6.1 52in c"""ib",i"". (2009: K2%.19~).

16. COMMITM t:1'o'TS ANI) CO.'",INGENCI t:S

(.) C..",,,,it,,,.nt.

All '''''''''"'' are ""I"",,,,'Ii in K'OOO

o.,..l..pm<nl I'r..~rti""

The EdgeBum. PhilpJelTery lIa"sLand·

....... ti..n

Ilarbour City

Pon MoresbyPon MoresbyPon Moresby

2011

61.244,400

7.157.7005.885.0008.100.000

82.387. \00

2012

4.201.400HJ8,3oo

9.639.700

'10 2007. NAS~'UNDenlcred into an agreement with the Indcpeoo.nl Public l3usillC" Corpora'ion (fPBC) and

Bank Soulh I'""inc Limito<l for the purchase of 50% of s..'<:lion 2. AII ... menl 9. 10. I I. 12. 13a. Ilb and 14

Gran"iff< I:oo"'n as the "Papua Il...el SilO" for K8, I miffion. Tho holding <OI\'p.ny entity wHl ou-n the l.nd and

h3\'e Kg.I million in <ash on rompl<lion of the tra""",';on. Tho Sil' ro..."", S.7S6m2 of pri land in the

Central 13",i"".. f)istriot of Pon Moresby. \1,-'< arc c"""nlly awailing for rellC",.1 of Sl.te Ie .

In 2{) IO. NASFUND entered into a Memorandum orUnderstallding Wilh die Fiji N,tion.1 P'ro>'idelll Fund and

Lalll<lna Dcc'elopmenls roc Ihe p"rehase of an hillorie sile ill Suya. k1lOu" as Ihe Grand Paeilie HOleL The

p"rchase price or'he sile is FJD 9.9 I million and .n e"pcclo<l FJD 70 milli,," rcdC'-'doplllClIl of whichNASFUND will ha,'e • ~O% imcrcsl is aillicipmo<llo mke Ihn:c Y.drs 10 eomplele. Th;s eonllHi11l1C'" is a

IlOtalioli in lhe ace""n" only .. lCl1tclllCTil al bal,nee dme had not occnrrcd 3Jld r.""1 eOll;ngS ha,'e 1101 bcx:n

compleled.

(b) ennling.nl U.bilill..

Nil

(c) M.I••i.1 Contr.cts _Open";nnol

CnOlrOCIAon Con,ulling

LJ HookerAshlon Brull5" lek

SOS Sceurily

National Capital

Scl"\'ic..Administralion

Administralion

Admlnistralion

AdministraliollIn,·cstment M.nager

hpi')' 11010JWI 2012

Fcb 201 IFeb 201 IScI' 2011

Dec2011

(d) M.ttri.l Cnnlnets _ I ",'""lmcnlS

Cnoiroci Scl"\'ic..

Ilomibrooks NGI Prop<rly o.,,'·elopment

Cunain Bros Properly o.,,'·elopmenl

Consap 0..",·.1"1"-"" f'rop<.'1ty o.,,'·elopmc'11l

'-"adcn in SUllOnlnnultion 14H


17. .:\'ENTS AnHITlIl:: DM.ANU: sun:,. DAn:

"IlIere an: 00 significant """"IS su~quent to ,he balanee ,httl date. whioh ",quire odjus'n>ont '0 Q<

di",l""u,,, in ,he finandal slalomonts.

R«ondli.,i.....r oash

For the pUI'JI"S" or,h. S'31emo.1 orCash Flows. oa;h include,eash 00 hand and al bank and short-Ie"" deposi,s. IlC1 of bank,wenlrafls. Cash a, at the end of[l\(, fln:moial y.... as ,h""" in [I\(,

Statomem "fCash FI"".. i, =oneikd 10 the relatod il""" in thebalance sh«, as follow"

18. I'OTES TO TIlE STATEMl::NT 0." CASll ."LOWSAll amonnls <Ire ""press<~1 in K'(I()(}

Cash on hand and " bank(l,nk ,,~erdran

Into,..,'t ocaring deposits. and lrcasUlY noIes.

2010

7.845

121.487

129.332

'00'17,634

173,068

190.432

1~. RELATED PARTIESNil. The 40% il1lercst i. N"io,,,,1 Capilal Limi,"" was sold in Dc<:embcr 1010.

Leaden i. SUj>crannultion 149


20. nNA"-'C1AL I"-'STRUME!'TS(a) Cr«Iil Risk

TIl< earrJing amoun' of lin.1Ileial 3S>d$ rcp<cscnlS ,he ma.,imum <re<!it o.'l""ure. The maximume~l"""re to orc<li, ri,k ."he reponi"ll da'e "'as;All Umob"'.' urt: exfl'~""" i" K '00(1 20 I0 200')

Ilcld-to-malU,itj' in'"CS1nlOnlSFinancial asSCI. design.te<! ., rair ,..1"" throuw> profit or louA'-oil.ble·for-salc !inanei.1 assclSLoan,. Grant.< and Rccei"ablesCash and Cash Equi,'alenlS,~,

331.024

lOI.59'i129,332661,951

207,OS"

190.432SoI6,691

,..,

21H19

207.0Sol

2010

21110

201.59'i

The maximum o'po'urc '0 erc<li, ri~ for IOIm<' grnnt.< and rttei.ablc< at the reponing da'e bj' grogmp/liercgion was:

All Omob"" ort: ''):1''<''''''' i" K '00(1Papua New GuineaAUSlnlliaOIlIer Pacific eoontriesEum ...,..., """n,ric.Uniled Slate.United KingdomOther European eounlfiesTOIaI 261.S9'i 207.(}5-!

The m...im"m esposure to eredil risk for I""n<. gran" and recei"able, at the reponing dote bj' 'H,e ofcoon'e'J"lrlY"'as'All """-",,,IS Ore e;tpre:t,eJ ill K '00(1

ComnlOrei.1 prival. seclorIndcpcl'l<lrnt S"'<c of PNGOlherTOial

179,59522,000

201.595

181,OSol26,000

207.0Sol

Impairm.n, tn......The aging of loan, and "".i,'able, a' llIc ",poning dale was:All Omob"'.' urt: exfl'~""" i" K '00(1

No< pas' dtl<Pas' due 0-30 day.Pa" due 31_180 da~'.

Po" due 181-360 d.y,Pa" due m<>re than 1 yoar,~,

201,595

201.59S

107,OSol

107.0Sol

TIl< "",,'omen' in llIc allowanco for impairmcnl in ""peet oft"""... gran" and m:oi,'ablcs was as follows:Bal.nce.' I Janu.!J'Impairmen' "'oogni~ed during tho j'oa,Impai"""n' ""'e=<l daring !he }'earIlalanee a' 31 Dcc<:mbc, T0Ia1

Leaden in SUj>.rannullion I~O


(b) Liquidity Risk

"I'hc NASFUNI> Board TIl.n.g... li4Uidily tisk through. the "sk m.nagm,...,t st"1c~n<nL"l'hc Ilo.td oolc; positive rnonlhly llel c,"lI,ibu"on inl10w in c:tOc" or nlOllIhly lOveS!·,OC"" <'<I11l10i"ncnlS.

(cl Curr~ne,'RiskT1Ic Fund', ~.pn,urc10 roreign currency risk was as follow. bas<'<l on Kin••mOlln1S:,\mo"ot> .l 3I I>«crnb<r 20 I0:

Poniculars

Equity lov~stmeot

Quolcd Unil<Fixcd Inl~rest SecuritiesC&$II & Rttoi,...blc,

Gross B.lanc~

% NOI Ass,,, Val""

'"'" G", SSIID ,~,

287.952 146.803 44.960 479.715

16.928 17.172 2.419 365183Q.1.879 163.975 47.379 516.:!Jl

13,9% 7.W. 2.2% 2J.5%

Amono... l 31 Ott.n,Mr 2009:

Equily Inv~..m",,(Fi.cd Inl~"st SecuritiesCash & R<:c~i,ablc,

Gross Balance% N~l Assel Val""

226.564 88.251 35.096 J49.91IJ5H 35432.329 2.329

23:2.436 88.251 35.096 3".78J13.1% >.0% '.0% 20.W.

(el Currency Risk (conlinucd)T1Ic signif'cant c.change ratC$ .pplicd during the year wcn: ilS follows:

A'wage ",Ie Reponing dale 'pol ",Ie2010 2009 1010 "..

AUD 0.4198 0.4851 0.3&l17 0.4352GlII' 0.250:2 0.2400 0,2565 0,2422Sill) 3.1108 3.08-10 3.1905 3.1395

Lc"d~n in SUI,eno"nUOlion lSI


Stn,i,,,'ily Ana'y$isA 10 perce,,1 'lrCnglheniog oflhe PNG Kin. againsl lhe following eumneie...1 ] I D\,<cml>o:r wouldh.w dc<rcascd profll or loss by lbe 'mounlS .ho"n I>o:low, Thi, • ..,Ipi, a>sume.. lh.l .11 <>lber

,-.ri.bl"", in panl<uI., imCre.1 ralC., rcm.in eon'l.m, The .".Ipi. WI< performc,.) on Ihe samc lIo,i.for 2009,

A 10 l"-,",e01 wc.kening oflbe PNG Kin. again'llhe .bo"e <ulTenei"".I] I December would hawhadlhe .... oal bUI opposile eneel on Ihe .bo"e cu""""ies 10 Ihe .mounls show" abo"e, on lhe basisIhm.1I olher "o,i.bles n.'main conslanl.

20,0All an/O,ml arc \"pressed in K'000

'""G",

'""27.716'~.907

U07~6,9JO

21.1318,0232.752

31,905

2010

444,924

1,855

446,809

Al ,he reponing dale Ihc imereS! rJle profile of Ihe Fund's inlCteSl' I>o:.ring fin.nci.1insln1mcnlS ""5:

All "moll'" art' exp"",ed in K '000Fhed R.le In•• run.O","Finanei.1 AsselsDlhc,

TOlal

"""257.455

1.855

259.340

Variablo Rale InSlrumo"1>Cl<hSlale Ci"'"1SDlhcrFin.nei.1 Li.bililin

I29,H322,00063,810

215.143

190.43226,00070.'J19

287.m

Protil or loss

F.ir ,,"1"0 ..",iIi';')' ...Il',is ror rhe<! nllo i""",monrsT1Ic Fund does 1101 aceeum for any fixed rale fina"d.1 .ssels .nd liabilili...1 f.i, v.lue Ihroughprofil or I"".. ."d lhe Fund does 1101 des;gnale den".I;,'eS (inleresl ",Ie sw.ps) as h"dgingill'llnlmenrs under. f.i, v.lue hc<lge a<:<:oUnling model. T1Icrefore 0 eh.nge in inle...,s, ral..., lhe

...,potting dale would noIafTe<:1 profil or I""s,

A ch.,,!:. ef I00 basi, poinlS in inlereS! rales would h..,. increased or dcerea",d equily byK Nil, (2009: K Nil),

Cash no... ""nsili,'i.y anal)'si. fer ,'oriohlo"le ;n.,rumo",.A ch.nge of 100 basi. points in inle""'l Mrs "' ,he reponing dale would 110,'. i""",ascJ (d<'<:",asM)C-q"ilY and pref'l or Ins, by lhe ""(>WIIS shown below, Th;, analysis assum~s Ih'I.1I Olher ".ri.bl....in pani<ular fo",il\ll currency ra'.... rem,in <Qn>",n,- T1Ic .nall'sis is perfo,med on lh< ..me ba,is I<If2009,

Varioblo MOloln"rumenlsA••l 31 Dc'<:embe,2010

A••13 I Dc,<:embe, 2009

(r) Fair Vol"r Versus CU'1;ng Val...T1Ic eorrying amounts offinanci.1 ..",'s .nd liabilil;es as SCI oul in Ihe s"'I~I1\Cnl of fino""i.1posiliQn .ppro"im'les Ihe fair ".1..", T1Ic signi fie.nl method••nd .""mpliOllS used in '''lim'linglhe f.i, ,-,Iue, a..., S",Ie<! in Ihe ""'I""'li"e noIcs 10 Ih< ","'counts,

Lc.ders in S.j>rnounuOlio" 1~2

0 - nasfund'andal""tomen" w. bdi.,'.tha',heoudi, .vld ... ael 2000...

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