Company registered number: 608059
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 1 JULY 2024 TO 31
DECEMBER 2024
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
CONTENTS
Company Information
Directors’ Report
Directors’ Responsibility Statement
Independent Auditor’s Report
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 1
COMPANYINFORMATION
DIRECTORS
Aileen Mannion
Raja Gul
COMPANY REGISTRATION NUMBER
608059
COMPANY SECRETARY AND
ADMINISTRATOR
NOTE TRUSTEE, PRINCIPAL
PAYING AGENT, SWAP COLLATERAL
CUSTODIAN AND ACCOUNT BANK
SWAP COUNTERPARTY AND
CALCULATION AGENT
TMF Administration Services Limited
Ground Floor
Two Dockland Central
Guild Street, North Dock
Dublin
D01 K2C5
Ireland
The Bank of New York
Chartered Accountants and Statutory Auditors
One Canada Square
London E14 5AL
England
D02 ED70
Natixis S.A.
30 Avenue
Pierre Mendes-France 75013
Paris
France
GraniteShares Jersey Limited
28 Esplanade
St. Helier Jersey
JE2 3QA
Channel Islands
Grant Thornton
Chartered Accountants and Statutory Audit Firm
13 – 18 City Quay
Dublin 2, D02 ED70
Ireland
ARRANGER
INDEPENDENT AUDITORS
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 2
COMPANY INFORMATION (CONTINUED)
LEGAL ADVISERS
Irish Law Advisers/Irish Listing Agent
Matheson
70 Sir John Rogerson’s Quay
Grand Canal Dock
Dublin 2, D02 R296
Ireland
English Law Advisers
Linklaters LLP
One Silk Street
London, EC2Y 8HQ
United Kingdom
Jersey Law Advisers
Carey Olsen
47 Esplanade
St Helier
Jersey JE1 0BD
Channel Islands
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 3
DIRECTORS’ REPORT FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024
The directors present the Annual Report and the audited financial statements of Graniteshares Financial Public Limited
Company (the "Company") for the 6 months period ended 31 December 2024 (the “Financial Period”).
PRINCIPAL ACTIVITIES
The Company is a public limited company, incorporated in Ireland on 17 July 2017, in accordance with the laws of Ireland
with a registration number 608059.
The Company has been formed for the purpose of issuing collateralised exchange traded products (“ETP Securities” or
(“ETPs”)) and entering into a fully funded Swap agreements. Commercial activity commenced in September 2019 with the
ETP Securities initially listed on the London Stock Exchange for trading on the secondary market.
The Company established a Collateralised ETP Securities Programme under which the Company issues, on an ongoing
basis, collateralised exchange traded products of different classes (each a “Class”) linked into indices providing exposure to
a range of asset classes including equities, commodities, fixed income and currencies. The ETP Securities may have long or
short, leveraged or unleveraged, exposure to the daily performance of the referenced index.
Each Class constitutes limited recourse obligations of the Company, secured on and payable solely from the assets
constituting the ETP Securities in respect of such Class.EachClass ofETPSecurities may comprise oneor more tranches.
The ETP Securities have been listed for trading on the London Stock Exchange, Borsa Italiana S.p.A. (the “Italian Stock
Exchange”) and Deutsche Borse (the "Frankfurt Stock Exchange"). The Company uses the net proceedsof the issuance of
the ETP Securities to enter into Total Return Swap Transactions (“TRSs”) to hedge its payment obligations in respect of each
Class of the ETP with one or more Swap Providers once the Swap Provider has delivered eligible collateral. The TRS for
each Class of ETP Securities will produce cash flows to service all of the Company’s payment obligations in respect of that
Class.
A the end of the Financial Period, there were 65 ETPs in issuance (financial year ended 30 June 2024: 109 ETPs). The
subscriptions over period amounted to €184,370,056 (financial year ended 30 June 2024: €201,188,492) with redemptions
of €258,615,875 (financial year ended 30 June 2024: €264,002,053).
Cash flows are a result of subscriptions and redemptions of ETP securities and expenses incurred. A movement on collateral
does not generate a cash flow. The proceeds of the issuance of a tranche of ETP Securities of a Class will be paid by the
Company to one or more of the Swap Providers with whom the Company has entered by the Company in relation that Class
in proportion to the increase in the number of ETP Securities of that Class then outstanding.
The Company’s payment obligations in respect of the ETP Securities of a Class will be covered entirely from payments
received by the Company from the Swap Providers in respect of such TRS. Pursuant to the terms of each credit support
document, the Company will be obliged to pay amounts equal to each distribution made on collateral held by it to the relevant
Swap Provider upon receipt.
The ETP Securities do not bear interest at a prescribed rate. The return (if any) on the ETP Securities shall be calculated
in accordance with the redemption provisions. The Classes of ETP Securities are disclosed in note 11.
There were no acquisitions of own shares by the Company during the Financial Period (financial year ended 30 June 2024:
nil). The Company does not have any branches.
The principal financial risks and uncertainties facing the Company during the financial year relate to the financial instruments
held by it and are set out in note 14 to the financial statements and the Company expects the nature of these risks and
uncertainties to remain the same for the foreseeable future.
FUTURE DEVELOPMENTS
The plan for the foreseeable future is to continue with the issuance of ETPs under the programme mentioned above which
may include listings on other stock exchanges.
RESULTS AND DIVIDENDS
The results for the Financial Period and the Company’s financial position at the end of the Financial Period are set out on
page15 and 16, respectively. Profit on ordinary activities before taxation Financial Period amounted to €- (financial year
ended 30 June 2024: €-). The corporation tax charge for the financial year is €124 (financial year ended 30 June 2024: €250).
No dividends were recommended to be paid for the Financial Period ended 31 December 2024 (Financial year ended 30
June 2024: €nil).
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 4
DIRECTORS’ REPORT FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
Key performance indicators
(a) Net gain on financial assets at FVTPL
Financial Period
ended
31 December
2024
€
101,917,605
Financial year
ended
30 June
2024
€
142,193,957
(b) Net loss on financial liabilities at FVTPL
(101,917,605)
(142,193,957)
(c) Financial assets at FVTPL
272,750,331
245,078,546
(d) Financial liabilities at FVTPL
(272,750,331)
(245,078,546)
PRINCIPAL RISKS AND UNCERTAINTIES
The operations of the Company are subject to various risks. Information about the financial risk management objectives and
policies of the Company, along with exposure of the Company to market risk, currency risk, liquidity risk, concentration risk
and operational risk, are disclosed in note 14 to the financial statements.
The ETP Securities continued to perform in line with their relevant benchmarks each disclosed in the programme’s base
prospectus as well as each ETP Securities’ final terms (both set of documents available a
For the 5-month period ending 31 December 2024, the S&P 500 gained 8.4% while the technology-oriented NASDAQ-100
finished up 7.2%. European markets also finished almost flat, with the Eurostoxx 50Index returning 0.6%.
GOING CONCERN
The directors have assessed the ability of the Company to continue in operational existence for twelve months from the date
of approvalof thefinancialstatements (‘theperiodof assessment’) andhaveconcludedthat it is appropriate to prepare the
financial statements on a going concern basis.
The nature of the Company’s business dictates that the outstanding ETPs may be redeemed at any time by any authorised
participant who has entered into an authorised participant agreement with the Company. As the redemption of ETPs will
coincide with the sale of an equal amount of the TRSs, no liquidity risk is considered to arise. The Companyhas entered into
its primary service contracts with service providers on a non-recourse basis and these costs are being met by GraniteShares
Jersey Limited. Therefore, the directors are confident that the Company will have the ability to continue to pay its operating
costs and any redemptions that may arise within the period of assessment.
Based on the above, the directors have concluded that the Company has no material uncertainties which would cast a
significant doubt on the Company’s ability to continue as a going concern over the period of assessment.
DIRECTORS AND COMPANY SECRETARY
The Secretary of the company is TMF Administration Services Limited. The directors and the company secretary are listed
on page 1. Raja Gul and Aileen Mannion are the current active directors. During the financial year Jerrick Sy served as
alternative director. The directors and the company secretary had no material interest in any contract of significance in
relation to the business of the Company. The directors and company secretary who held office on 31 December 2024 did not
hold any shares, debentures or loan stock of the Company on that date or during the financial year (2024: same).
POWERS OF DIRECTORS
The directors are responsible for managing the business affairs of the Company in accordance with the Company’s
Constitution. The directors may delegate certain functions to TMF Administration Services Limited (the “Administrator”) and
other parties, subject to the supervision and direction of the directors.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 5
DIRECTORS’ REPORT FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
DIRECTORS’ COMPLIANCE STATEMENT
The directors, in accordance with Section 225(2)(a) of the Companies Act 2014 (the “Act”), acknowledge that they are
responsible for securing the Company’s compliance with its relevant obligations. Relevant obligations, in the context of the
Company, are the Company’s obligations under:
(a) the Act, where a breach of the obligations would be a category 1 or category 2 offence;
(b) the Act, where a breach of the obligation would be a serious Market Abuse or Prospectus offence; and
(c) tax law.
Pursuant to Section 225(2)(b) of the Act, the directors confirm that:
(i) a compliance policy statement has been drawn upas required by Section 225(3)(a) of the Actsetting out the Company’s
policies (that, in the directors’ opinion, are appropriate to the Company) respecting compliance by the Company with its
relevant obligations;
(ii) appropriate arrangements and structures have been put in place that, in their opinion, secure material compliance with
the Company’s relevant obligations; and
(iii) a review has been conducted, in the financial year, of the arrangements and structures referred to in paragraph (ii).
CORPORATE GOVERNANCE STATEMENT
The directors have established processes regarding internal controls and risk management systems to ensure effective
oversight of the financial reporting process. These include appointing the Administrator to maintain the accounting records of
the Company. The Administrator is contractually obliged to maintain adequate accounting records and to that end the
Administrator performs reconciliations of its records to those of Graniteshares Jersey Limited (“the Arranger”). The
Administrator is also contractually obliged to prepare the annual report including financial statements for review and approval
by the directors. The directors evaluate and discuss significant accounting and reporting issues as the need arises.
From time to time the directors also examine and evaluate the Administrator’s financial accounting and reporting routines and
monitor and evaluate the external auditors’ performance, qualifications and independence. The Administrator has operating
responsibility for internal control in relation to the financial reporting process and reports to the directors. The directors are
responsible for assessing the risk of irregularities whether caused by fraud or error in financial reporting and ensuring the
processes are in place for the timely identification of internal and external matters with a potential effect on financial
reporting. The directors have also put in place processes to identify changes in accounting rules and
recommendations and to ensure that these changes are accurately reflected in the Company’s financial statements.
The Administrator is contractually obliged to design and maintain control structures to manage the risks which the directors
judge to be significant for internal control over financial reporting. These control structures include appropriate segregation of
responsibilities and specific control activities aimed at detecting or preventing the risk of significant deficiencies in financial
reporting for every significant account in the financial statements and the related notes in the Company’s financial
statements. The directors delegate the asset valuation function to the Arranger who operates a sophisticated system of
controls to ensure appropriate valuation. All the values for the financial instruments held by the Company have been provided
by the Arranger and in our opinion, they are the most appropriate and reliable source of such fair values in its capacity as
Arranger. We are satisfied that the amounts as stated in the Company’s financial statements represent a reasonable
approximation of those values.
The Company’spolicies and thedirectors’ instructions with relevance forfinancial reporting areupdated and communicated via
appropriate channels, such as e-mail, correspondence and meetings to ensure that all financial reporting information
requirements are met in a complete and accurate manner. The directors have an annual process toensure that appropriate
measures are taken to consider and address any shortcomings identified and measuresrecommended by the independent
auditors. Given the contractual obligations of the Administrator, the directors have concluded that there is currently no need
for the Company to have a separate audit committee or internal audit functionin order for the directors to perform effective
monitoring and oversight of the internal controls and risk management systems of the Company in relation to the financial
reporting process. Therefore, the Company has taken the exemption available for Section 110 companies as set out under
Section 1551 of the Companies Act 2014 S 11 (c) not to have a separate audit committee.
No director has a significant direct or indirect holding of securities in the Company. No person has any special rights of
control over the Company’s share capital. There are no restrictions on voting rights.
The directors are responsible for managing the business affairs of the Company in accordance with the Company
Constitution. The directors may delegate certain functions to the Administrator and other parties, subject to the supervision
and direction by the directors. The Board consists of two directors.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 6
DIRECTORS’ REPORT FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
ACCOUNTING RECORDS
The directors are responsible for ensuring that adequate accounting records, as outlined in Section 281 to 285 of the
Companies Act 2014, are kept by the Company. The measures are taken by the directors to ensure compliance with the
Company’s obligation to keep adequate accounting records are the use of appropriate systems and procedures and ensuring
that a competent service provider is responsible for the preparation and maintenance of the accounting records. The
accounting records are kept at the Company’s registered office at Ground Floor, Two Dockland Central, Guild Street, North
Dock, Dublin, D01 KC25, Ireland.
SHAREHOLDER MEETINGS
The shareholder’s rights and the operations of the shareholders meetings are defined in the Company’s Constitution and
complies with the Companies Act 2014.
RELATED PARTY TRANSACTIONS
The related party transactions in relation to the Company are disclosed in note 16.
SIGNIFICANT EVENTS DURING THE YEAR
The significant events during the year in relation to the Company are disclosed in note 17.
SIGNIFICANT SUBSEQUENT EVENTS
The significant subsequent events in relation to the Company are disclosed in note 18.
POLITICAL DONATIONS
The Company did not make any political donations during the financial year (2023: nil).
RESEARCH AND DEVELOPMENT
The Company did not engage in any research and development activity during the financial year (2023: nil).
This report was approved by the Board on 27 March 2025 and signed on its behalf by:
.........................................
Raja Gul
Director
.........................................
Aileen Mannion
Director
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 7
DIRECTORS’ RESPONSIBILITY STATEMENT
The directors are responsiblefor preparing the Directors’ Report and thefinancialstatements in accordance with applicable
Irish company law and regulations.
Irish company law, requires the directors to prepare financial statements for each financial year. Under that law, they have
elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union and applicable Irish law.
Under Irish company law, the directors must not approve the financial statements unless they are satisfied that they give a
true and fair view of the assets, liabilities and financial position of the Company and of its profit or loss for that financial year
and otherwise comply with Companies Act 2014. In preparing these financial statements, the directors are required to:
•select suitable accounting policies and then apply them consistently; •
make judgments and estimates that are reasonable and prudent;
•state whether they have been prepared in accordance with IFRS as adopted by the European Union;
•assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern;
•use the going concern basis of accounting, unless they either intend to liquidate the Company or to cease operations,
or have no realistic alternative, but to do so; and
•ensure the annual report and financial statements include a fair review of the development and performance of the
business and the option of the Issuer, together with a description of the principal risks and uncertainties the Company
faces.
The directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time
the assets, liabilities, financial position and profit or loss of the Company and enable them to ensure that the financial
statements comply with the Companies Act 2014. They are responsible for such internal controls as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the
Company and to prevent and detect fraud and other irregularities. The directors are also responsible for preparing a
Directors’ Report that complies with the requirements of the Companies Act 2014.
This report was approved by the Board on 27 March 2025 and signed on its behalf by:
.........................................
Raja Gul
Director
.........................................
Aileen Mannion
Director
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 8
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (UNAUDITED) AND THE FINANCIAL YEAR
ENDED 30 JUNE 2024
Financial year
ended 30June
2024
6 months
ended
31 December
2024
(Unaudited)
Note€
Net gain on financial assets at fair value through profit and loss
Net loss on financial liabilities at fair value through profit or loss
101,917,605
(101,917,605)
€
142,193,957
(142,193,957)
Net operating Income
-
-
Other income
Administrative expenses
1,887,216
(1,886,216)
3,093,507
(3,092,507)
Profit for the financial year before taxation
1,000
1,000
Taxation
(250)
(250)
Profit for the financial year after taxation
750
750
Other comprehensive income
-
-
Total comprehensive income for the financial year
750
750
All amounts relate to continuing operations.
The accompanying notes on pages
o
orm an integral part of these financial statements.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 9
STATEMENT OF FINANCIAL POSITIONS AS AT 31 DEDEMBER 2024 (UNAUDITED) AND 30 JUNE 2024
As at
31December
2024
Note (Unaudited)
€
As at 30
June
2024
€
Assets
Financial assets at fair value through profit or loss
Cash and cash equivalents
Other receivables
245,078,546
1,896,626
312,682
272,750,331
2,583,602
427,335
275,761,268
247,287,854
Liabilities
Financial liabilities at fair value through profit or loss
Corporation tax payable
Other payables
272,750,331
250
122,981,187
245,078,546
-
2,180,558
275,731,768
247,259,104
Equity Share
capital
Retained earnings
Total equity
29,500
28,750
25,000
4,500
25,000
3,750
Total equity and liabilities
247,287,854
275,761,268
The accompanying notes on pages
o
orm an integral part of these financial statements.
The financial statements were approved and authorised for issue by the Board on 27 March 2025 and signed on its
behalf by:
.........................................
Raja Gul
Director
.........................................
Aileen Mannion
Director
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 10
STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (UNAUDITED) AND THE FINANCIAL YEAR
ENDED 30 JUNE 2024
Share capital
€
Retained
earnings Total
€ €
For the financial period ended 31 December 2024
(Unaudited)
As at 1 July 2024
Total comprehensive income for the financial year
As at 31 December 2024
25,000
4,500
29,500
25,000
-
3,750 28,750
750 750
Financial year ended 30 June 2024
At 1 July 2023
Total comprehensive income for the financial year
As at 30 June 2024
25,000
3,750
28,750
Share capital
€
25,000
-
Retained
earnings Total
€ €
3,000 28,000
750 750
The accompanying notes on pages
o
orm an integral part of these financial statements.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 11
STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 DECEMBER 2024 (UNAUDITED)
AND FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Financial year
ended
30 June
2024
6 months period
ended
31 December
2024
(Unaudited)
Note€
€
Cash flows from operating activities
Profit on ordinary activities before taxation
1,0000
1,000
Adjustments:
Net gains on financial assets at fair value through profit or loss
Net losses on financial liabilities at fair value through profit or loss
Movement in other receivables
Movement in other payables
686,976
542,757
101,917,605
(101,917,605)
(114,653)
800,629
(142,193,957)
142,193,957
(177,392)
719,149
Taxation paid
Net cash flows generated from operating activities
686,976
542,507
-
(250)
Cash flows from investing activities
TRS purchases
TRS sales
Net cash generated from investing activities
(352,328,174)
486,708,547
134,380,373
(201,188,492)
264,002,053
Cash flows from financing activities
62,813,561
ETP subscription
ETP redemption
352,328,174
(486,708,547)
201,188,492
(264,002,053)
Net cash flows used in financing activities
Net increase in cash and cash equivalents
686,976
542,507
(134,380,373)
(62,813,561)
Cash and cash equivalents at the beginning of financial year
Cash and cash equivalents at the end of financial year
1,896,626
1,354,119
2,583,602
1,896,626
The accompanying notes on pages
o
orm an integral part of these financial statements.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 12
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024
1 GENERAL INFORMATION
The Company was incorporated on 17 July 2017 in accordance with the laws applicable in Ireland under registration number
608059. The Company is a public limited company and qualifies for the regime contained in Section 110 of the Irish Taxes
Consolidation Act, 1997 (the “TCA, 1997”). This provides that a qualifying company will be liable to corporation tax at the rate
of 25% under Case III of Schedule D of the TCA in respect of taxable profits. The Company’s registered office is at Ground
Floor, Two Dockland Central, Guild Street, North Dock, Dublin D01 K2C5, Ireland.
The Company has been formed for the purpose of issuing collateralised ETP Securities and entering into a fully funded Swap
agreement. Commercialactivity commencedin September 2019 with the ETP Securities initially listed on the London Stock
Exchange for trading on the secondary market.
The Company established a Collateralised ETP Securities Programme under which the Company issues, on an ongoing
basis, collateralised exchange traded products of different classes (each a “Class”) linked into indices providing exposure to
a range of asset classes including equities, commodities, fixed income and currencies. The ETP Securities may have long or
short, leveraged or unleveraged, exposure to the daily performance of the referenced index.
The ETP Securities have been listed for trading on the London Stock Exchange, Borsa Italiana S.p.A. (the “Italian Stock
Exchange”), Euronext Paris and Deutsche Boerse (the "Frankfurt Stock Exchange"). The Company uses the net proceeds of
theissuanceof theETP Securities to enter into TotalReturnSwap Transactions (“TRS”) tohedgeits payment obligations in
respect of each Class of the ETPs with one or more Swap Providers once the Swap Provider has delivered eligible collateral.
The TRS for each Class of ETP Securities will produce cash flows to service all of the Company’s payment obligations in
respect of that Class.
The Company’s principal activity is the listing and issue of ETPs. The securities are issued as demand requires. The
Company purchases a matching TRS from swap providers to hedge its liabilities and ensure the assets can service its
liabilities. The number and terms of ETPs outstanding will match the number and terms of ETP Swap Contracts so that the
obligations of the Company and the Swap Provider Match. The price of an ETP Swap Contract will equal the price of an ETP.
GraniteShares Jersey Limited (the “Arranger”) supplied and/or arranged for the supply of all administrative services to the
Company and paid all management and administration costs of the Company, in return for which the Company pays the
Arranger an arranger fee.
The Company considers the capital management and its current capital resources to be adequate to maintain the ongoing
listing and issue of the ETPs.
2 Material accounting policies
2.1Statement of compliance
The company financial statements have been prepared in accordance with International Financial Reporting Standards
and its interpretations adopted by the EU ("adopted IFRS’s").
2.2Basis of preparation
The financial statements have been prepared on a going concern basis and under the historical cost convention except for
the Company’s financial assets and liabilities at fair value through profit and loss.
2.3New and amended standards and interpretations
New standards, amendments to standards, and interpretations in issue that have been adopted:
Standard
Title of Standard or Interpretation
IFRS 17 and Amendments to IFRS 17
Amendments to IAS 1
Effective date 1
January 2023 1
January 2023
Amendments to IAS 12
IFRS 17 Insurance Contracts and Amendments to IFRS 17
Classification of Liabilities as Current or Non-current
Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
1 January 2023
Amendments to IAS 8
Definition of Accounting Estimates
1 January 2023
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 13
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
Material accounting policies (continued)
2.3New and amended standards and interpretations (continued)
The amendments above are effective for annual periods beginning on or after 1 January 2023. The adoption of the
standards had no material impact on the Company as at 30 June 2024 and 30 June 2023.
New standards, amendments to standards, and interpretations are not yet effective and have not been adopted early by
the Company.
Standard
Effective date
Title of Standard or Interpretation
Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants
Amendments to IAS 1
Amendments to IFRS 16
Amendments to IAS 7 and IFRS 7
1 January 2024
1 January 2024
1 January 2024
Amendments to IFRS 10 and IAS 28
IFRS 9 Financial Instruments
Lease Liability in a Sale and Leaseback
Disclosures: Supplier Finance Arrangements
Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
Note 2
Fees in the ’10 per cent’ Test for Derecognition of Financial
Liabilities
1 January 2024
Amendments to IAS 21
Lack of Exchangeability
1 January 2025
IFRS 9 Financial Instruments
Note 2: In December 2015, the IASB postponed the effective date of this amendment indefinitely pending the outcome of
its research project on the equity method of accounting.
There are no other standards, amendments to standards or interpretations that are not yet effective for annual periods
beginning on or after 1 January 2024 which have had a material impact on the financial statements of the Company.
2.4Use of estimates and judgements
The preparation of the audited financial statements requires the directors to make judgments, estimates and assumptions
that may affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions will be reviewed on an ongoing basis. Revisions to accounting estimates will be
recognised in the period in which the estimates are revised and in any future periods affected.
The principal application of judgement and sources of estimation of uncertainty arise with respect to determining the
functional currency (see note 2.5).
2.5Functional and presentation currency
These audited financial statements are presented in Euro (“EUR” or “€”) which is the Company’s presentation currency. The
directors of the Company believe that Euro is the appropriate presentation currency as it reports to the Central Bank of
Ireland in Euro.
Functional currency is the currency of the primary economic environment in which the entity operates. The ETP Securities
issued by the Company and swap transactions entered into by the Company are denominated in Euro (“EUR” or “€”), Pound
Sterling (“GBP” or “£”) and US Dollars (US or “$). The directors of the Company believe that Euro most faithfully represents
the economic effects of the underlying transactions, events and conditions.
2.6Financial instruments
Classification
The Company has adopted the following classifications for financial instruments:
Financial assets:
•At fair value through profit or loss: TRS.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 14
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
Material accounting policies (continued)
Financial instruments (continued)
•Amortised cost: Cash and cash equivalents and other receivables.
Financial liabilities:
•At fair value through profit or loss: ETP Securities.
•Amortised cost: other payables.
Puttable options:
Security-holders can request for the ETP Securities to be repurchased by the Issuer on a daily basis against the Value per
ETP. Security-holders have no ability to influence the issuer’s activity.
On that basis, ETP Securities are non-equity instrument but can be considered as bonds with an embedded 1-day put
option.
The classification is determined by both:
•The Company’s business model for managing the financial asset and financial liability.
The Company purchases a matching total return swaps from swap providers to hedge its liabilities and ensure the
assets can service its liabilities. The number and terms of ETP Securities outstanding will match the number and
terms of swap contracts so that the obligations of the Company and the swap provider match.
•The contractual cash flow characteristics of the financial assets and financial liability.
The Company uses the net proceeds of the issuance of the ETP Securities to enter total return swaps to hedge its
payment obligations in respect of each Class of the ETP Securities with one or more swap providers. The total return
swaps for each Class ofETP Securities produce cash flows to service all the Company’s payment obligations in
respect of that Class.
Recognition
Purchases and sales of financial instruments are recognised using trade date accounting, the day that the Company commits
to purchase orsell the asset. From this date any gains and losses arisingfrom changes in fair value of the financial assets or
financial liabilities are recorded through the Statement of Comprehensive Income.
Measurement
Financial instruments that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are
categorised at fair value through profit or loss. Financial instruments are measured initially at fair value (transaction price)
plus, in case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly
attributable to the acquisition or issue of the financial asset or financial liability. Subsequent to initial recognition, all
instruments classified as at fair value through profit or loss, are measured at fair value with changes in their fair value
recognised in profit or loss in the Statement of Comprehensive Income. Transaction costs on financial assets and financial
liabilities at fair value through profit or loss are expensed immediately.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at
FVTPL:
•it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
•It’s contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.
These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is
reduced by impairment losses. The financial assets at amortised cost consist of cash and cash equivalents and other
receivables.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 15
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
Material accounting policies (continued)
Financial instruments (continued)
Fair value estimation
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
The price per ETP Securities is calculated daily to reflect the daily change in the relevant index of the ETP Securities, and will
take into account all applicable fees and adjustments. On the issue date of the class, the price per ETP Securities will be
equal to its issue price. On any valuation date thereafter, the price per ETP is calculated according to a formula which reflects
the price per ETP on the immediately preceding valuation date.
The TRSs are valued at fair value utilizing predefined formulaand market prices consistent with the ETP valuation process.
In the absence of readily available market prices, the Swap Provider will provide the inputs for the valuation. Where possible,
the Company independently calculates the fair value and verifies the Swap Providers valuation with any variation
investigated. The valuation determined by the Swap counterparty may be based on assumptions of market conditions at the
time of valuation, similar arm’s length market transactions if available, reference to the current fair valueof similar instruments
and a variety of different valuation techniques such as the discounted cash flow techniques, option pricing models or any
other valuation technique that provides a reliable estimate of prices obtained in actual market transactions. All TRSs are
carried as assets when fair value is positive and as liabilities when fair value is negative.
Transfer between levels of the fair value hierarchy
There were no transfers between levels of the fair value hierarchy in the financial year.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position where the
Company currently has a legally enforceable right to set-off the recognised amounts and there is an intention to settle on a
net basis or realise the asset and settle the liability simultaneously.
Derecognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or
when it transfers the financial asset in a transaction in which substantially all the risks and rewards of ownership of the
financial asset are transferred or in which the Company neither transfers nor retains substantially all therisks and rewards of
ownership and does not retain control of the financial asset.
Any interest in transferred financial assets that qualify for derecognition that is created or retained by the Company is
recognised as a separate asset or liability in the Statement of Financial Position.
On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount
allocated to the portion of the asset derecognised), and the consideration received (including any new asset obtained less
any new liability assumed) is recognised in the Statement of Comprehensive Income.
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expired.
Net gain/(loss) on financial instruments at fair value through profit or loss
Realised gain/(loss) on financial assets are recorded as part of net gain/(loss) on financial assets (or liabilities) at fair value
through profit or loss within the Statement of Comprehensive Income.
Unrealised gain/(loss) relates to gains and losses arising from changes in fair value of financial instruments during the
financial year. Unrealised gain/(loss) on financial instruments are recognised within net gain/(loss) on financial assets (or
liabilities) at fair value through profit or loss within the Statement of Comprehensive Income.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 16
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
Material accounting policies (continued)
2.6Financial instruments (continued)
Expected credit losses
The impairment model applies to financial assets measured at amortised cost and debt investments at FVOCI, but not to
investments in equity instruments.
Loss allowances are measured on either of the following bases:
•12-month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting
date; and
•lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial
instrument.
The Company measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are
measured as 12-month ECLs:
•debt securities that are determined to have low credit risk at the reporting date; and
•other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life
of the financial instrument) has not increased significantly since initial recognition.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s
historical experience and informed credit assessment and including forward-looking information.
The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is
exposed to credit risk.
See note 14.2 further discussion on credit risk.
2.7Cash and cash equivalents
Cash and cash equivalents includes cash held with banks which is subject to insignificant risk in terms of changes of fair value
with original maturities of three months or less, and are used by the Company in the management of its short-term
commitments.
2.8Other receivables and payables
Other receivables and payables with no stated interest rate and receivable within one year are recorded at transaction
price.
2.9Ordinary share capital presented as equity
Ordinary shares are not redeemable and do not participate in the net income of the Company are classified as equity as
per the Company’s Constitution.
2.10Taxation
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the Statement of
Comprehensive Income except to the extent that it relates to items recognised directly in equity, in which case it is recognised
in equity.
Current tax is the expected tax payable on the taxable income for the financial year using the tax rates applicable to the
Company’s activities enacted or substantively enacted at the reporting date, and adjustments to tax payable in respect of
previous financial years, if any.
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
2 Material accounting policies (continued)
2.10Taxation (continued)
Deferred taxation is accounted for, without discounting, in respect of all temporary differences between the treatment of
certain items for taxation and accounting purposes which have arisen but have not been reversed by the financial year end
date except as otherwise required by IAS 12 ‘Deferred Tax’. Provision is made at the tax rates that are expected to apply in
the financial year in which the temporary differences reverse. Deferred tax assets are recognised only to the extent that it is
considered more likely than not that they will be recovered. A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed
at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
2.11Other income
The Company is entitled to receive a management fee which is calculated and paid by the Swap Provider by reference to a
management fee rate under the specified terms of each relevant TRS by charging the applicable fee rate on the daily market
value of each security.
The Company receives income from the Arranger to cover any expenses that are incurred. This is classified as ‘other
income’ in the Statement of Comprehensive Income.
2.12Administration expenses
The Company pays an arranger fee to the Arranger which is calculated based on the amount of fees received from the Swap
Provider. The arranger fees are accrued on a daily basis and are recorded in the Statement of Comprehensive income.
Creation and Redemption fees are charged to the Company by the Paying Agent. The Company then charges these to the
Authorised Participants. They are charged on a per transaction basis.
Administration expenses include amounts accrued for expenses such as administration and management incurred during
the financial year.
2.13Foreign currency transaction
Transactions in foreign currencies are translated to the functional currency of the Company at exchange rates at the dates of
the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to
the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign
currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the
fair value was determined. Foreign currency differences arising on retranslation are recognised in the Statement of
Comprehensive Income.
2.14Unearned Income
This relates to the excess cash the that company received from the Arranger to cover for expenses.
The Company receives cash from the Arranger to cover for expenses. Whenever the cash is yet to be received it is
recorded as a receivable from the Arranger.
However, when more cash was received from the Arranger to cover for expenses it is recorded as a payable.
Net gain on financial assets at fair value through profit or loss
6monthsperiod
ended
31 December
Financial year
ended 30June
2024
€
Unrealised gains on financial assets at fair value through profit or loss
Realised gain/(loss) on financial assets at fair value through profit or loss
101,917,60
5
142,193,957
2024
(unadudited)
€
24,633,357
77,284,248
45,150,019
97,043,938
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
3 Net gain on financial assets at fair value through profit or loss (continued)
Net losses on financial assets at fair value through profit or loss arises from changes in fair value on ETPs listed on the
London Stock Exchange, Borsa Italiana S.p.A. (the “Italian Stock Exchange”) and Deutsche Boerse (the "Frankfurt Stock
Exchange").
Net loss on financial liabilities at fair value through profit or loss
Financial year
ended 30June
2024
Unrealised losses on financial liabilities at fair value through profit or loss
Realised (loss)/gain on financial liabilities at fair value through profit or loss
(101,917,605
)
(142,193,957)
6 months period
ended
31 December
2024
(unaudited) €
(24,633,357)
(77,284,248)
€
(45,150,019)
(97,043,938)
Other Income
Financial year
ended 30June
2024
€
Issuer profit
Arranger Fees
Creation, redemption and other income
1,887,216
3,093,507
6 months period
ended
31 December
2024
(unaudited) €
1,000
1,499,260
386,956
1,000
1,029,436
2,063,071
Administrative expenses
Financial year
ended 30June
2024
€
Audit and tax compliance fees
Corporate service fees
Other costs
Management fees
(
1,886,216)
(3,092,507)
6 months period
ended
31 December
2024
(unaudited) €
-6,868
(1,499,260)
(393,824)
(74,215)
10,166
(965,387)
(2,063,071)
Audit and tax compliance fees breakdown:
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
Administrative expenses (continued)
6 months period
ended
31December
2024 (unaudited)
€
Financial year
ended 30June
2024
€
Auditor’s remuneration in respect of the financial year audit of financial
statements
(63,500)
Tax compliance
-
-
(10,715)
-
(74,215)
The Company has no employees and services required are contracted from third parties. TMF Administration Services
Limited allocated for the 6 months period ended 31 December 2024 approximately EUR 1,000 (Financial year ended 30 June
2024: EUR 1,000) from the corporate service fee received as consideration for the making available of individuals to act as
directors of the Company.
Taxation
6 months period
ended
31 December
2024
(unaudited) €
Corporation tax based on profit for the financial year
250
Financial year
ended 30June
2024
€
250
Factors affecting Company tax charge for the financial year are explained below:
6 months period
ended
31 December
2024
(unaudited) €
Financial year
ended 30June
2024
€
Profit on ordinary activities before taxation
1,000
1,000
Profit on ordinary activities multiplied by the standard rate of Irish corporation
tax for the financial period of 12.5%
Effect of higher tax rate (25%) applicable under Section 110 TCA, 1997
(125)
(125)
(125)
(125)
Current tax credit for the financial year
(125)
(250)
6 months period
ended
31December
2024
(audited)
€
Financial year
ended
30 June
2024
Corporation tax charged
Corporation tax paid
Ending corporation tax payable
-
-
250
(250)
€
250
(250)
GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY
Page 20
The Company is a qualifying company within the meaning of Section 110 of the TCA, 1997. As such, the profits are chargeable
to corporation tax under Case III of Schedule D of the TCA at a rate of 25%, but are computed in accordancewith the
provisions applicable to Case I of Schedule D of the TCA. There was no deferred tax during the 6 months financial period
ended 31 June 2024 (Financial year ended 30 June 2024: nil).
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)
Financial assets at fair value through profit or loss
As atAs at
31 December 30 June
2024
€
2024
€
(unaudited)
Fair value of TRS 272,750,331
245,078,546
Other receivables
As at 30
June
2024
€
As at
31 December
2024
(unaudited)
€
6,000
5,000
Issuer profit receivable
Share capital receivable
Other receivable
427,335
312,682
18,750
402 585
18,750
288,932
Based on the review of the directors, no impairment was recorded for the 6 months period ended 31 December 2024
(financial year ended 30 June 2024: Nil) as the expected losses areconsidered to be immaterial.
Cash and cash equivalents
As at
31December
2024
(unaudited) €
As at 30
June
2024
€
Cash and cash equivalents
2,583,602
1,896,626
Basedonthereview of theDirectors, noimpairment is recorded fpr the6months periodended 31December 2024 (financial year
ended 30 June 2024:Nil) as the cash and cash equivalents have a low credit risk based on the external credit ratings of the
counterparty and any expected losses are considered to be immaterial.
