Review Questions and Solutions on Financial Instruments PDF

Preview

Summary

REVIEW QUESTIONS ON FINANCIAL INSTRUMENTS1 1 January 2011 James issued a loan note with a GH¢50,000 nominal value. It was issued at adiscount of 16% of the nominal value. The costs of issue were GH¢2,000. Interest coupon is 5%payable annually in arrears. The bond must be redeemed on 1 January 2016 a...

Description

REVI EWQUEST I ONSONF I NANCI ALI NSTRUMENT S 1 .On1J a n u a r y2 0 1 1J a me si s s u e dal o a nn o t ewi t haGH¢ 5 0 , 0 0 0n o mi n a l v a l u e .I t wa si s s u e da t a d i s c o u n to f1 6 %o ft h en o mi n a l v a l u e .T h ec o s t so fi s s u ewe r eGH¢ 2 , 0 0 0 .I n t e r e s tc o u p o ni s5 % p a y a b l ea n n u a l l yi na r r e a r s .T h eb o n dmu s tb er e d e e me do n1J a n u a r y2 0 1 6a tap r e mi u mo fGH ¢ 4 , 6 1 1 . Eff e c t i v ei n t e r e s t r a t ei s1 2 %p . a . Ho w wi l lt h i sber e p o r t e di nt h e fi n a n c i a ls t a t e me n t so fJ a me so v e rt hep e r i o dt o r e d e mp t i on ? So l u t i o nt oQue s t i on1 Afi n a n c i a l i n s t r u me n t wh i c hi safi n a n c i a l l i a b i l i t y , l o a nn o t e . . . me a s u r e da t a mo r t i s e dc o s t . Ati n c e p t i o n ,f a i rv a l u ei st h en o mi n a la mo u n tl e s st h ed i s c o u n t .I s s u ec o s twi l lb ed e d u c t e d b e c a u s ei sn o ta t f a i rv a l u et h r o u g hp r o fi t o rl o s s . Eff e c t i v ei n t e r e s t r a t et ob eu s e df o rfi n a n c ec o s t a n da c t u a l a n n u a l p a y me n t i sc o u p o nr a t eo f 5 %. F a c eV a l u eo f L o a n

5 0 , 0 0 0

I s s u e da t 1 6 %Di s c o u n t ( 1 6 %x 5 0 , 0 0 0 )

( 8 , 0 0 0 )

T r a n s a c t i o nCo s t

( 2 , 0 0 0 )

F a i r Va l u ea t i n c e p t i o n

4 0 , 0 0 0

Re d e mp t i o nv a l u e ( 5 0 , 0 0 0 + 4 6 1 1 )

5 4 , 6 1 1

Y e a r

Op e n i n gFL F C@ 1 2 % Pa y me n t

Cl o s i n gFL

2 0 1 1

4 0 , 0 0 0

4 , 8 0 0

( 2 , 5 0 0 )

4 2 , 3 0 0

2 0 1 2

4 2 , 3 0 0

5 , 0 7 6

( 2 , 5 0 0 )

4 4 , 8 7 6

2 0 1 3

4 4 , 8 7 6

5 , 3 8 5

( 2 , 5 0 0 )

4 7 , 7 6 1

2 0 1 4

4 7 , 7 6 1

5 , 7 3 1

( 2 , 5 0 0 )

5 0 , 9 9 2

2 0 1 5

5 0 , 9 9 2

6 , 1 1 9

( 5 7 , 1 1 1 )

1

J our na l e nt r i e s 0 1J a n , 2 0 1 1 Ne t Ca s hr e c e i v e df r o mi s s u e F i n a n c i a l L L o a nNo t e 3 1J a n , 2 0 1 1 St a t e me n t o f p r o fi t / l o s s Ca s hp a i d

Dr

Cr 4 0 , 0 0 0 4 0 , 0 0 0

4 , 8 0 0 2 , 5 0 0 Page 1 of 10

F i n a n c i a l L L o a nNo t e No t ec l o s i n g l i a b i l i t y ( 4 0 , 0 0 0 +2 , 3 0 0 )

2 , 3 0 0

Al t e r n a t i v ej o u r n a l e n t r i e s St a t e me n t o f p r o fi t / l o s s

4 , 8 0 0

F i n a n c i a l L L o a nNo t e F i n a n c i a l L L o a nNo t e

4 , 8 0 0 2 , 5 0 0

Ca s hp a i d

2 , 5 0 0

3 1J a n , 2 0 1 1 St a t e me n t o f p r o fi t / l o s s

5 , 0 7 6

Ca s hp a i d

2 , 5 0 0

F i n a n c i a l L L o a nNo t e

2 , 5 7 6

3 1J a n , 2 0 1 1 St a t e me n t o f p r o fi t / l o s s

5 , 3 8 5

Ca s hp a i d

2 , 5 0 0

F i n a n c i a l L L o a nNo t e 3 1J a n , 2 0 1 1

2 , 8 8 5

St a t e me n t o f p r o fi t / l o s s Ca s hp a i d

5 , 7 3 1 2 , 5 0 0

F i n a n c i a l L L o a nNo t e 3 1J a n , 2 0 1 1

3 , 2 3 1

St a t e me n t o f p r o fi t / l o s s Ca s hp a i d F i n a n c i a l L L o a n No t e ( Re d e mp t i o n )

6 , 1 1 9 5 7 , 1 1 1 5 0 , 9 9 2

2 .A. )Ho yr a i s e dfi n a n c eo n1J a n u a r y2 0 1 1b yt h ei s s u eo f at wo y e a r 2 %b o n dwi t ha n o mi n a lv a l u eo fGH¢ 1 0 , 0 0 0 .I twa si s s u e da tad i s c o u n to f5 %a n di sr e d e e ma b l ea ta p r e mi u mo f GH¢ 1 , 0 7 5 . Eff e c t i v ei n t e r e s t r a t ei s1 0 %. B. )Co mf o r t r a i s e dfi n a n c eb yi s s u i n gz e r oc o u p o nb o n d sa t p a ro n1J a n u a r y2 0 1 5wi t ha n o mi n a l v a l u eo f GH¢ 1 0 , 0 0 0 . T h eb o n d swi l l b er e d e e me da f t e r t woy e a r sa t ap r e mi u mo f GH ¢ 1 , 4 4 9 . Eff e c t i v ei n t e r e s t r a t ei s7 %. Re q ui r e d : F o r t h ea b o v efi n a n c i a l i n s t r u me n t s , i l l u s t r a t ea n de x p l a i nh o wt h e ywo u l db ea c c o u n t e df o r . So l u t i o nt oQue s t i on2 ( a ) F a c eVa l u eo f L o a n

1 0 , 0 0 0

I s s u e da t 5 %Di s c o u n t ( 5 %x 1 0 , 0 0 0 ) T r a n s a c t i o nCo s t

( 5 0 0 )

F a i r Va l u ea t i n c e p t i o n

9 , 5 0 0 Page 2 of 10

Re d e mp t i o nv a l u e ( 1 0 , 0 0 0 +1 0 7 5 )

F C@ Y e a r Op e n i n gFL 1 0 % 2 0 1 1 9 , 5 0 0 9 5 0 2 0 1 2 1 0 , 2 5 0 1 , 0 2 5

1 1 , 0 7 5

Pa y me n t

Cl o s i n gFL

( 2 0 0 )

1 0 , 2 5 0

( 1 1 , 2 7 5 )

-

( b ) F a c eVa l u eo f L o a n

1 0 , 0 0 0

I s s u e da t 5 %Di s c o u n t ( 5 %x 1 0 , 0 0 0 ) T r a n s a c t i o nCo s t F a i r Va l u ea t i n c e p t i o n

1 0 , 0 0 0

Re d e mp t i o nv a l u e ( 1 0 , 0 0 0 +1 4 4 9 )

1 1 , 4 4 9

Y e a r

Op e n i n gFL

F C@ 7 %

2 0 1 5

1 0 , 0 0 0 7 0 0

2 0 1 2

1 0 , 7 0 0 7 4 9

Pa y me n t Cl o s i n gFL 1 0 , 7 0 0 ( 1 1 , 4 4 9 ) -

3 .OnJ a n u a r y12 0 1 1 , Swa n ni s s u e dt h r e ey e a r5 %GH¢ 3 0 , 0 0 0l o a n sa t n o mi n a l v a l u ewi t he ff e c t i v e i n t e r e s t r a t ea t 5 %. T h el o a nn o t ewi l l b er e d e e me da t p a r . Ma r k e t I n t e r e s t Ra t e sa t 3 1 / 1 2 / 2 0 1 1 6 % Ma r k e t I n t e r e s t Ra t e sa t 3 1 / 1 2 / 2 0 1 2 4 % T h et r a n s a c t i o ni sc l a s s i fi e da sFVT PL . Ex p l a i na n di l l us t r a t eho wt h el oa ni sa c c o u nt e df ori nt h efi n a nc i a l s t a t e me n t sf o rt h et h r e e y e a r st o3 1 / 1 2 / 2 0 1 3 . So l u t i o nt oQue s t i on3 SWANN LIMITED - FINANCIAL LIABILITIES -FVTPL/ANNUAL REVALUATION YEAR OFL FC CASH PAID CFL RFL 2011 30,000.00 1,500.00 1,500.00 30,000.00 29,450 2012 29,449.50 1,766.97 1,500.00 29,716.47 30,303 2013 30,303.00 1,212.12 31,500.00

GAIN/LOSS 551 587

Determing re-measurement value - Discounted cash flows Page 3 of 10

ECF 2012 2013

1,500.00 31,500.00

DCF @ 6% 0.94 0.89

PV 1,414.50 28,035.00 29,449.50

2013

ECF 31,500.00

DCF @ 6% 0.96

PV 30,303.00

4 .J o n e sb o u g h ta ni n v e s t me n tf o rGH¢ 4 0mi l l i o n .T r a n s a c t i o nc o s t swe r eGH¢ 1mi l l i o n .T h ea s s e t wa sd e s i g n a t e da sF VT OCIu p o ni n i t i a lr e c o g n i t i o n .Att h er e p o r t i n gd a t e ,t h ef a i rv a l u eo ft h e fi n a n c i a l a s s e th a dr i s e nt oGH¢ 6 0mi l l i o n .Sh o r t l ya f t e rt h er e p o r t i n gd a t e ,t h efi n a n c i a l a s s e twa s s o l df o rGH¢ 7 0mi l l i o n . Re q ui r e d :Us eJ o u r n a l st os h o wh o wt h ei n v e s t me n t s h o u l db ea c c o u n t e df o r ?

5 .I F RS9F i n a n c i a l I n s t r u me n t sp r o v i d e sg u i d a n c ef o rfi n a n c i a l a s s e t swh i c ha r ec l a s s i fi e da sd e b t t o b eme a s u r e di no n eo f t h r e ewa y s : ( i ) a t a mo r t i s e dc o s t ; ( i i ) a t f a i rv a l u et h r o u g ho t h e r c o mp r e h e n s i v ei n c o me ; o r ( i i i ) a t f a i rv a l u et h r o u g hp r o fi t o r l o s s . Re q ui r e d : Ou t l i n et h ec o n d i t i o n sr e q u i r e dt ob eme t i no r d e rt oa p p l ye a c ho f t h eme a s u r e me n t . So l u t i o nt oQue s t i on5 ( i )

Amor t i s e dCos t  

( i i )   ( i i i ) 

He l di nab u s i n e s smo d e l wh o s ea i mi st oc o l l e c t t h ec o n t r a c t u a l c a s hfl o ws . Th ec o n t r a c t u a lt e r msg i v er i s eo ns p e c i fi e dd a t e st oc a s hfl o wst h a ta r es o l e l yp r i n c i p a la n d i n t e r e s t o nt h ep r i n c i p a l a mo u n t o u t s t a n d i n g . F a i rv a l uet hr o ugho t he rc ompr e he ns i v ei n c ome Th efi n a n c i a la s s e ti sh e l dwi t h i nab u s i n e s smo d e lwh o s eo b j e c t i v ei st ob ea c h i e v e db yb o t h c o l l e c t i n gc o n t r a c t u a l c a s hfl o wsa n ds e l l i n gfi n a n c i a l a s s e t s . Th ec o n t r a c t u a lt e r msg i v er i s eo ns p e c i fi e dd a t e st oc a s hfl o wst h a ta r es o l e l yp r i n c i p a la n d i n t e r e s t o nt h ep r i n c i p a l a mo u n t o u t s t a n d i n g . F a i rv a l u et hr o ughp r o fitorl os s I n v e s t me n t i nad e b t i n s t r u me n t si sme a s u r e da t f a i rv a l u et h r o u g hp r o fi t o rl o s swh e ni t c a n n o t b e me a s u r e da t a mo r t i s e dc o s t o ra t f a i rv a l u et h r o u g ho t h e rc o mp r e h e n s i v ei n c o me ; o rd e s i g n a t e da t i n c e p t i o n t o me a s u r e a t FVTPL i fd o i n g s o e l i mi n a t e so rs i g n i fi c a n t l yr e d u c e s me a s u r e me n t / r e c o g n i t i o ni n c o n s i s t e n c i e s( a c c o u n t i n gmi s ma t c h ) .

Page 4 of 10

6 .On1J a n u a r y2 0 1 4 ,Ab e lL t dp u r c h a s e d4 , 0 0 0 , 0 0 05 %b o n df o rGH¢ 3 , 8 0 0 , 0 0 0 ,i n c u r r i n g t r a n s a c t i o nc o s t so fGH¢ 8 0 , 0 0 0 . I n t e r e s t i sr e c e i v e di na r r e a r sa n dt h eb o n dwi l l b er e d e e me da t a p r e mi u mo fGH¢ 2 3 8 , 4 0 0o v e rt h en o mi n a l v a l u eo n3 1De c e mb e r2 0 1 6 .T h ee ff e c t i v er a t ei n t e r e s t i s8 %. T h ef a i rv a l u e so ft h eb o n da t3 1De c e mb e r2 0 1 4a n d2 0 1 5we r eGH¢ 4 , 4 0 0 , 0 0 0a n dGH ¢ 4 , 1 6 0 , 0 0 0r e s p e c t i v e l y . Re q ui r e d : i . Ca l c u l a t et h er e l e v a n tfi g u r e sf o rt h efi n a n c i a l s t a t e me n t sf o rt h et h r e ey e a r su s i n gAmo r t i s e d Co s t Me a s u r e me n t . i i . Ca l c u l a t et h er e l e v a n tfi g u r e sf o rt h efi n a n c i a l s t a t e me n t sf o rt h et h r e ey e a r su s i n gF a i rV a l u e T h r o u g hOt h e r Co mp r e h e n s i v eI n c o meMe a s u r e me n t .

7 .Ev e r e s tl i mi t e di s s u e dGH¢ 4 0 0 , 0 0 08 %c o n v e r t i b l el o a ns t o c ka tp a ro n1J a n u a r y ,2 0 1 0 , r e d e e ma b l ea tp a ro n3 1De c e mb e r ,2 0 1 4 .Th et e r mso fc o n v e r s i o nr e q u i r et h a te a c hGH¢ 1 0 0o f t h el o a nwi l lb ec o n v e r t i b l ei n t o5 0e q u i t ys h a r e so fE v e r e s tL i mi t e d .T h ema r k e tr a t eo ft h el o a n wi t h o u t ac o n v e r s i o no p t i o ni s1 2 %a n di n t e r e s t i sp a y a b l ei na r r e a r so n3 1De c e mb e r e a c hy e a r . T h ep r e s e n t v a l u eo f GH¢ 1a t t h ed i s c o u n t r a t e so f 8 %a n d1 2 %a r ep r o v i d e db e l o w: Y e a r 8 % DCF 1 2 %DCF 1 0 . 9 3 0 . 8 9 2 0 . 8 6 0 . 8 0 3 0 . 7 9 0 . 7 1 4 0 . 7 4 0 . 6 4 5 0 . 6 8 0 . 5 7 Re q ui r e d : a ) Pa s saj o u r n a l t or e c o r dt h ei n i t i a l r e c o g n i t i o no f t h el o a no n1J a n u a r y , 2 0 1 0 . b ) Pr e p a r ee x t r a c t so f St a t e me n t o f I n c o mea n dSt a t e me n t o f F i n a n c i a l Po s i t i o na t t h ee n do f 2 0 1 2 . NB: Al l c a l c u l a t i on ss ho u l db er o u nd e dt ot h ene a r e s t who l en umb e r .

8 .T UGBEL t di s s u e d1 , 2 0 0GH¢ 1 0 05 %c o n v e r t i b l el o a nn o t e so n1J a n2 0 1 5 . Th el o a nn o t e sc a nb e c o n v e r t e dt oe q u i t ys h a r e so nt h eb a s i so f2 5s h a r e sf o re a c hGH¢ 1 0 0l o a nn o t eo n3 1De c e mb e r 2 0 1 7o rr e d e e me da tp a rf o rc a s ho nt h es a med a t e .Ane q u i v a l e n tl o a nn o t ewi t h o u tt h e c o n v e r s i o nr i g h t swo u l dh a v er e q u i r e da ni n t e r e s t r a t eo f 8 %. T h ep r e s e n t v a l u eo f GH¢ 1r e c e i v a b l ea t t h ee n do f e a c hy e a r , b a s e do nd i s c o u n t r a t e so f 5 %a n d 8 %, a r e 5 % 8 % Y e a r 1 0 . 9 5 0 . 9 3 Y e a r 2 0 . 9 1 0 . 8 6 Y e a r 3 0 . 8 6 0 . 7 9 Re q ui r e d : a .Pa s saj o u r n a l t or e c o r dt h ei n i t i a l r e c o g n i t i o no f t h el o a no n1J a n u a r y , 2 0 1 5 . b .Pr e p a r ee x t r a c t so fSt a t e me n t o fI n c o mea n dSt a t e me n to f F i n a n c i a l Po s i t i o na tt h ee n do ft h e fi r s t t woy e a r s . Page 5 of 10

c . Pa s sj o u r n a l st or e c o r de n t r i e sa t t h ee n do f t h et h i r dy e a r a s s u mi n g ( i ) T h es h a r eo p t i o ni st a k e na n d ( i i ) Th el o a ni sr e p a i d . So l u t i o nt oQue s t i on8 Wo r k i ng s ( W1 ) Sp l i t t i n go ft heBo n d Y e a r Ca s hfl o w

Amo u nt GHC 6 , 0 0 0 6 , 0 0 0

1 2

I n t e r e s t I n t e r e s t

3

I n t e r e s t a n dPr i n c i p a l1 2 6 , 0 0 0

DF@8 %

PV GHC 5 , 5 8 0 5 , 1 6 0

0 . 9 3 0 . 8 6 0 . 7 9 L i a b i l i t y Eq u i t y

9 9 , 5 4 0 1 1 0 , 2 8 0 9 , 7 2 0 1 2 0 , 0 0 0

( W2 ) Amo r t i s a t i o no f L i a bi l i t yComp on e n t Y e a r

Ope n i n gBa l a n c e

EI R@ 8 %

Ca s h@ 5 %

Cl o s i ng Ba l a n c e

1

1 1 0 , 2 8 0

8 , 8 2 2 ( 6 , 0 0 0 )

1 1 3 , 1 0 2

2

1 1 3 , 1 0 2

9 , 0 4 8 ( 6 , 0 0 0 )

1 1 6 , 1 5 0

3

1 1 6 , 1 5 0

9 , 8 5 0 ( 1 2 6 , 0 0 0 )

-

( a )J o u r n a l De t a i l s 0 1 Ap r 1 5 Ca s h / Ba n k

De bi t GHC

Cr e d i t GHC

1 2 0 , 0 0 0

L i a b i l i t yc o mp o n e n t -Co n v e r t i b l eb o n d

1 1 0 , 2 8 0

Eq u i t yc o mp o n e n t -Co n v e r t i b l eb o n d Be i n gi n i t i a l r e c o g n i t i o na n dme a s u r e me n t o f 5 %c o n v e r t i b l e b o n di s s u e d

9 , 7 2 0

( b )Ex t r a c t s St a t e me n t o fPr o fi t orLo s sa n dOt h e rComp r e h e ns i v e I n c o me

F i n a n c ec o s t s( W2 )

Y e a r1 GHC 8 , 8 2 2

Y e a r2 GHC Page 6 of 10

9 , 0 4 8

St a t e me n t o fF i n a nc i a l Pos i t i o n Y e a r1 GHC

Y e a r2 GHC

Eq u i t yc o mp o n e n t Co n v e r t i b l eb o n d( W1 )

9 , 7 2 0 9 , 7 2 0

L i a b i l i t yc o mp o n e n t -Co n v e r t i b l eb o n d( W2 )

1 1 3 , 1 0 2 1 1 6 , 1 5 0

( c)J o u r n a l s De t a i l s

De bi t GHC

I f t h eSh a r eOpt i oni st a k e n L i a b i l i t yc o mp o n e n t -Co n v e r t i b l eb o n d

Cr e d i t GHC

1 2 0 , 0 0 0

Sh a r eCa p i t a l Be i n gc o n v e r s i o no f b o n d si n t os h a r e su p o nma t u r i t yd a t e I f L o a ni sRe p a i d L i a b i l i t yc o mp o n e n t -Co n v e r t i b l eb o n d

1 2 0 , 0 0 0

1 2 0 , 0 0 0 1 2 0 , 0 0 0

Ca s h / Ba n k Be i n gr e p a y me n t o f b o n d sa t p a r o nma t u r i t yd a t e

9 .On1J a n u a r y2 0 1 4 ,Ab e lL t dp u r c h a s e d4 , 0 0 0 , 0 0 05 %b o n df o rGH¢ 3 , 8 0 0 , 0 0 0 ,i n c u r r i n g t r a n s a c t i o nc o s t so fGH¢ 8 0 , 0 0 0 . I n t e r e s t i sr e c e i v e di na r r e a r sa n dt h eb o n dwi l l b er e d e e me da t a p r e mi u mo fGH¢ 2 3 8 , 4 0 0o v e rt h en o mi n a l v a l u eo n3 1De c e mb e r2 0 1 6 .T h ee ff e c t i v er a t ei n t e r e s t i s8 %. T h ef a i rv a l u e so ft h eb o n da t3 1De c e mb e r2 0 1 4a n d2 0 1 5we r eGH¢ 4 , 4 0 0 , 0 0 0a n dGH ¢ 4 , 1 6 0 , 0 0 0r e s p e c t i v e l y . Re q ui r e d : i . Ca l c u l a t et h er e l e v a n tfi g u r e sf o rt h efi n a n c i a l s t a t e me n t sf o rt h et h r e ey e a r su s i n gAmo r t i s e d Co s t Me a s u r e me n t . i i . Ca l c u l a t et h er e l e v a n tfi g u r e sf o rt h efi n a n c i a ls t a t e me n t sf o rt h et h r e ey e a r su s i n gF a i rV a l u e T h r o u g hOt h e r Co mp r e h e n s i v eI n c o meMe a s u r e me n t . So l u t i o nt oQue s t i on9 At Amor t i s e dCos t Ye a r op e ni n gBa l a nc e 3 1 / 1 2 / 1 4 3 , 8 8 0 , 0 0 0

I nt e r e s t ( 8 %) Re c e i pt

Cl os i ngBa l a nc e

3 1 0 , 4 0 0

3 , 9 9 0 , 4 0 0

2 0 0 , 0 0 0

Page 7 of 10

3 1 / 1 2 / 1 5 3 , 9 9 0 , 4 0 0 3 1 / 1 2 / 1 6 4 , 1 0 9 , 6 3 2

3 1 9 , 2 3 2

2 0 0 , 0 0 0

4 , 1 0 9 , 6 3 2

3 2 8 , 7 6 8

4 , 4 3 8 , 4 0 0

( 0 )

T hea s s e t i ni t i a l l yr e c ogni s e da tf a i rv a l uepl u st r a ns a c t i onc o s t St a t e me nt of I nc ome I n t e r e s t I n c o me( Cr ) St a t e me nt of Fi na nc i a l Pos i t i on F i n a n c i a l As s e t s

De c 1 4 3 1 0 , 4 0 0

De c 1 5 3 1 9 , 2 3 2

De c 1 4 3 , 9 9 0 , 4 0 0

De c 1 6 3 2 8 , 7 6 8

De c 1 5

De c 1 6

4 , 1 0 9 , 6 3 2

At F a i rVa l uet hr oughot he rc ompr e he ns i v ei nc ome Ye a r 3 1 / 1 2 / 1 4 3 1 / 1 2 / 1 5 3 1 / 1 2 / 1 6

op e ni n gBa l a nc e

I nt e r e s t ( 8 %) Re c e i pt

T o t a l

F a i rv a l ue

Ga i n/ Los s

3 , 8 8 0 , 0 0 0

3 1 0 , 4 0 0

2 0 0 , 0 0 0

3 , 9 9 0 , 4 0 0

4 , 4 0 0 , 0 0 0

4 0 9 , 6 0 0

4 , 4 0 0 , 0 0 0

3 1 9 , 2 3 2

2 0 0 , 0 0 0

4 , 5 1 9 , 2 3 2

4 , 1 6 0 , 0 0 0

( 3 5 9 , 2 3 2 )

4 , 1 6 0 , 0 0 0

3 2 8 , 7 6 8

4 , 4 3 8 , 4 0 0

5 0 , 3 6 8

( 5 0 , 3 6 8 )

T hea s s e t i ni t i a l l yr e c ogni s e da tf a i rv a l uepl u st r a ns a c t i onc o s t St a t e me nt of I nc ome

De c 1 4

De c 1 5

De c 1 6

I n t e r e s t I n c o me( Cr )

3 1 0 , 4 0 0

OCI FVg a i n / l o s s ( Cr a n dDr ) St a t e me nt of Fi na nc i a l Pos i t i on

4 0 9 , 6 0 0 ( 3 5 9 , 2 3 2 ) ( 5 0 , 3 6 8 ) De c 1 4 De c 1 5 De c 1 6

F i n a n c i a l As s e t s

4 , 4 0 0 , 0 0 0

3 1 9 , 2 3 2

3 2 8 , 7 6 8

4 , 1 6 0 , 0 0 0

1 0 .A s t r a t e g i ci n v e s t o r ,NPI T ,i n v e s t si n1 0mi l l i o ne q u i t ys h a r e so fal i s t e dc o mp a n y ,EBAN Co n s t r u c t i o nL i mi t e do n0 1J u l y2 0 1 1 .Th ep r i c ep e rs h a r ei sGH¢ 1a n di n c u r r e dl e g a l c h a r g e so f 2 %o f t h ev a l u eo f t h ei n v e s t me n t . NPI Tma d ea ni r r e v o c a b l ee l e c t i o ni mme d i a t e l ya f t e r p u r c h a s et o t a k ea l lr e me a s u r e me n tg a i n sa n dl o s s e st h r o u g ho t h e rc o mp r e h e n s i v ei n c o mea sa l l o we db y I F RS9 . Sh a r ep r i c e sd u r i n gt h ep e r i o da r ea sf o l l o ws : 3 1De c e mb e r 2 0 1 1 GH¢ 1 . 4 0 3 1De c e mb e r 2 0 1 2 GH¢ 1 . 2 0 EBANL t dp a i dGH¢ 0 . 2 0p e rs h a r ea sd i v i d e n df o rt h ey e a re n d e d2 0 1 1a n d2 0 1 2 .T h es h a r e s we r es o l do n3 1De c e mb e r2 0 1 3a t GH¢ 1 . 3 0p e r s h a r e . Re q ui r e d :I nt h eb o ok sof NPI T , a )Pr e p a r eJ o u r n a l e n t r i e st og i v ee ff e c t t ot h ea b o v et r a n s a c t i o n s b )Pr e p a r ee x t r a c t sf r o mt h efi n a n c i a l s t a t e me n t sf o ra l l t h er e l e v a n t y e a r s . Page 8 of 10
...