Untitled document

Company registered number: 608059

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

CONTENTS

COMPANY INFORMATION

DIRECTORS

Aileen Mannion

Raja Gul

Jerrick Sy (appointed 30 June 2023 and resigned 3 July 2023)

Deirdre Brennan (appointed 25 October 2024 and resigned 25 October

2024)

COMPANY REGISTRATION NUMBER

608059

COMPANY SECRETARY AND

ADMINISTRATOR

TMF Administration Services Limited

Ground Floor

Two Dockland Central

Guild Street, North Dock

Dublin

D01 K2C5

Ireland

NOTE TRUSTEE, PRINCIPAL

PAYING AGENT, SWAP COLLATERAL

CUSTODIAN AND ACCOUNT BANK

The Bank of New York

Chartered Accountants and Statutory Auditors

One Canada Square

London E14 5AL

England

D02 ED70

SWAP COUNTERPARTY AND

CALCULATION AGENT

Natixis S.A.

30 Avenue

Pierre Mendes-France 75013

Paris

France

ARRANGER

GraniteShares Jersey Limited

28 Esplanade

St. Helier Jersey

JE2 3QA

Channel Islands

INDEPENDENT AUDITORS

Grant Thornton

Chartered Accountants and Statutory Audit Firm

13 – 18 City Quay

Dublin 2, D02 ED70

Ireland

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

Page 1

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2024

The directors present the Annual Report and the audited financial statements of Graniteshares Financial Public Limited

Company (the "Company") for the financial year ended 30 June 2024.

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. Each Class of ETP Securities may comprise one or more tranches.

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 Borse (the "Frankfurt Stock Exchange"). The Company uses the net proceeds of

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.

As at financial year ended 30 June 2024, there were 109 ETPs in issuance (2023: 109 ETPs). The purchases over the

financial year amounted to €201,188,492 (2023: €240,977,908) with sales of €264,002,053 (2023: €231,042,886).

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 year (2023: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 year and the Company’s financial position at the end of the financial year are set out on page 15

and 16, respectively. Profit on ordinary activities before taxation amounted to €1,000 (2023: €1,000). The corporation tax

charge for the financial year is €250 (2023: €250).

No dividends were recommended to be paid for the financial year ended 30 June 2024 (2023: €nil).

Page 2

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2024 (CONTINUED)

Key performance indicators

Financial year

ended

30 June

2024

€

Financial year

ended

30 June

2023

€

(a) Net gain on financial assets at FVTPL

142,193,957

35,822,145

(b) Net loss on financial liabilities at FVTPL

(142,193,957)

(35,822,145)

(c) Financial assets at FVTPL

245,078,546

165,698,150

(d) Financial liabilities at FVTPL

(245,078,546)

(165,698,150)

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

prospectusaswellaseachETPSecurities’finalterms(bothsetofdocumentsavailableat

www.graniteshares.com/ETPS).

Financial markets performed very well during the 01 July 2023 to 30 June 2024 fiscal year. According to Bloomberg and

during that period, the S&P 500 gained 24.6% while the technology-oriented NASDAQ-100 finished up 30.9%. The

development in activity related to artificial intelligence positively impacted some of the largest US public companies. In

addition the reduction in the US Federal Reserve interest rate benchmarks resulted in an overall increase in valuation across

the U.S. equity market. European markets also finished the period in positive territory, with the Eurostoxx 50 Index up by

15.0% over the period according to Bloomberg. European markets were affected by political uncertainties and a lesser

exposure to the technology sector.

GOING CONCERN

The directors have assessed the ability of the Company to continue in operational existence for twelve months from the date

of approval of the financial statements (‘the period of assessment’) and have concluded that 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 Company has 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 30 June 2024 did not hold

any shares, debentures or loan stock of the Company on that date or during the financial year (2023: 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.

Page 3

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 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 up as required by Section 225(3)(a) of the Act setting 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’s policies and the directors’ instructions with relevance for financial reporting are updated 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 to ensure that

appropriate measures are taken to consider and address any shortcomings identified and measures recommended

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 function in 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 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.

Page 4

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 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).

INDEPENDENT AUDITOR

Grant Thornton, Chartered Accountants and Statutory Audit Firm is the independent auditor for the Company and will

continue in office in accordance with section 383(2) of the Companies Act 2014.

RELEVANT AUDIT INFORMATION

Each of the persons who are directors at the time when this Directors’ report is approved has confirmed that:

•so far as that director is aware, there is no relevant audit information of which the Company’s auditors are unaware;

and

•that director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant

audit information and to establish that the Company’s auditors are aware of that information.

This report was approved by the Board on 25 October 2024 and signed on its behalf by:

.........................................

Raja Gul

Director

.........................................

Deirdre Brennan

Director (alternate)

Page 5

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ RESPONSIBILITY STATEMENT

The directors are responsible for preparing the Directors’ Report and the financial statements 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 25 October 2024 and signed on its behalf by:

.........................................

Raja Gul

Director

.........................................

Deirdre Brennan

Director (alternate)

Page 6

Independent auditor’s report to the members

of GraniteShares Financial Plc

Report on the audit of the financial statements

Opinion

We have audited the financial statements of GraniteShares Financial Plc (the “Company”), which comprise

the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes

in Equity, the Statement of Cash Flows for the financial year ended 30 June 2024, and the related notes to

the financial statements, including the summary of material accounting policies.

The financial reporting framework that has been applied in the preparation of the financial statements is

Irish law, including the Commission Delegated Regulation 2018/815 regarding the single electronic

reporting format (ESEF), and International Financial Reporting Standards (IFRS) as adopted by the

European Union.

In our opinion, GraniteShares Financial Plc’s financial statements:

·

give a true and fair view in accordance with IFRS as adopted by the European Union of the assets,

liabilities and financial position of the Company as at 30 June 2024 and of its financial

performance and cash flows for the financial year then ended; and

·

have been properly prepared in accordance with the requirements of the Companies Act 2014.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (‘ISAs (Ireland))

and applicable law. Our responsibilities under those standards are further described in the

‘Responsibilities of the auditor for the audit of the financial statements’ section of our report. We are

independent of the Company in accordance with the ethical requirements that are relevant to our audit of

the financial statements in Ireland, including the Ethical Standard for Auditors (Ireland) issued by the Irish

Auditing and Accounting Supervisory Authority (IAASA), and the ethical pronouncements established by

Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances for the

Company. We have fulfilled our other ethical responsibilities in accordance with these requirements. We

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of going concern basis of

accounting in the preparation of the financial statements is appropriate. Our evaluation of the Directors’

assessment of the Company’s ability to continue as a going concern basis of accounting included:

·

Obtaining and reviewing the directors’ formal assessment of going concern;

·

Reviewing post year-end performance and business activities;

·

Making enquiries with management and reviewing the board minutes in order to understand

the future plans and to identify potential contradictory information; and

·

Assessing the adequacy of the disclosures with respect to the going concern assumption.

Page

7

Independent auditor’s report to the members

of GraniteShares Financial Plc

Conclusions relating to going concern (continued)

Based on the work we have performed, we have not identified any material uncertainties relating to

events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability

to continue as a going concern for a period of at least twelve months from the date when the financial

statements are authorised for issue.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described

in the relevant sections of this report.

Key audit matters

Key audit matters are thosematters that, in our professional judgement, were of most significance in our

audit of the financial statements of the current financial period and include the most significant assessed

risks of material misstatement (whether or not due to fraud) we identified, including those which had the

greatest effect on: the overall audit strategy, the allocation of resources in the audit, and the directing of

efforts of the engagement team. These matters were addressed in the context of our audit of the financial

statements as a whole, and in forming our opinion thereon, and therefore we do not provide a separate

opinion on these matters.

Overall audit strategy

We designed our audit by determining materiality and assessing the risks of material misstatement in the

financial statements. In particular, we looked at where the directors made subjective judgements, for

example, in respect of significant accounting estimates that involved making assumptions and considering

future events that are inherently uncertain / the selection of pricing sources to value the investment

portfolio. We also addressed the risk of management override of internal controls, including evaluating

whether there was any evidence of potential bias that could result in a risk of material misstatement due

to fraud.

Based on our considerations as set out below, our areas of focus included:

·

Existence of financial assets and financial liabilities at fair value through profit or loss

·

Valuation of financial assets and financial liabilities at fair value through profit or loss

How we tailored the audit scope

The Company is a public limited company and qualifies for the regime contained in Section 110 of the Irish

Taxes Consolidation Act, 1997. The Company has listed exchange traded products (“ETP Securities” or

(“ETPs”)) on the London Stock Exchange, Italian Stock Exchange, Euronext Paris, and Frankfurt Stock

Exchange. The Directors control the affairs of the Company and they are responsible for the overall

investment policy, which they determined. The Company engages TMF Administration Services Limited

(or the “Administrator”) to manage certain duties and responsibilities including the maintenance of

the accounting records. The financial statements, which remain the responsibility of the Directors, are

prepared on their behalf by the Administrator.

We tailored the scope of our audit taking into account the types of investments within the Company, the

involvement of third party service providers, the accounting processes and controls, and the industry in

which the Company operates.

Page

8

Independent auditor’s report to the members

of GraniteShares Financial Plc

Key audit matters (continued)

How we tailored the audit scope (continued)

In establishing the overall approach to our audit we assessed the risk of material misstatement at a

Company level, taking into account the nature, likelihood and potential magnitude of any misstatement.

As part of our risk assessment, weconsidered the Company’s interaction with theAdministrator, and

weassessed the control environment in place at the Administrator.

Materiality and audit approach

The scope of our audit is influenced by our application of materiality. We set certain quantitative

thresholds for materiality. These, together with qualitative considerations, such as our understanding of

the Company and its environment, the history of misstatements, the complexity of the Company and the

reliability of the control environment

,

helped us to determine the scope of our audit and the nature,

timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually

and on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the Company as follows: 1% of Total

Assets at 30 June 2024. We considered Total Assets to be the most appropriate benchmark on which to

base our materiality, based on the principal activities of the Company and the significance of the assets

they hold.

We have set performance materiality for the Company at 75%, having considered our prior year

experience, business risks and fraud risks associated with the entity and it’s the control environment. This

is to reduce to an appropriately low level the probability that the aggregate of uncorrected and

undetected misstatements in the financial statements exceeds materiality for the financial statements as

a whole.

We agreed with the Directors that we would report to them misstatements identified during our audit

above 5% of materiality as well as misstatements below that amount that, in our view, warranted

reporting for qualitative reasons.

Significant matters identified

The risks of material misstatement that had the greatest effect on our audit, including the allocation of our

resources and effort, are set out below as significant matters together with an explanation of how we

tailored our audit to address these specific areas in order to provide an opinion on the financial

statements as a whole. This is not a complete list of all risks identified by our audit.

Existence of financial assets and liabilities at fair value through profit or loss (Notes 2, 8, 11, and 14)

Description of significant matter

Financial assets and financial liabilities

at fair value through profit or loss

represent a principal element of the

financial statements. We considered

the risk that the financial assets (Total

Return Swap Transactions (TRSs)) and

financial liabilities (Exchange Traded

Products (ETPs)) at fair value through

profit or loss included in the Statement

of Financial Position did not exist or that

they were not held in the Company’s

Audit response to significant matter

The following audit work has been performed to address

the risks:

·

we held discussions with management and conducted a

walkthrough to gain an understanding of the TRS and

ETPs existence process including relevant controls;

·

we obtained direct independent confirmation of the

existence of the TRSs with the relevant counterparty,

Natixis S.A., swap counterparty in the Company’s

financial assets (TRSs), and agreed to accounting

records; and

Page

9

Independent auditor’s report to the members

of GraniteShares Financial Plc

Significantauditor’sattentionwas

deemed appropriate because of the

materiality of the financial assets and

financial liabilities at fair value through

profit or loss. As a result, we considered

this as key audit matter.

Our planned audit procedures were completed

without material exception.

name at the financial year end,

which could result in a material

misstatement.

·

we obtained direct independent confirmation of the

existence of the ETPs with the relevant note trustee, the

Bank of New York, charged with safeguarding the

Company’s financial liabilities (ETPs) and agreed to

accounting records.

Significantauditor’sattentionwas

deemed appropriate because of the

materiality of the financial assets and

financial liabilities at fair value through

profit or loss. In addition, the valuation

is also a key contributor to the financial

performance of the Company.

Valuation of financial assets and liabilities at fair value through profit or loss (Notes 2, 8, 11, and 14)

Description of significant matter

There is a risk that the financial assets

(TRSs) and financial liabilities (ETPs) at

fair value through profit or loss

included in the Statement of Financial

Position as at 30 June 2024 are not

valued at fair value in line with IFRS

9, Financial Instruments.

Audit response to significant matter

The following audit work has been performed to address the

risks:

·

we held discussions with management and conducted

a walkthrough to gain an understanding of the TRSs

and ETPs valuation process including relevant controls;

·

we tested a sample of TRSs purchases and sales by

tracing the sample to confirmation reports, and ETPs

subscriptions and redemptions by tracing to

issuance deeds and redemption notices and

repricing to independent pricing source;

·

we re-performed the assigned valuation of each

instrument using independent pricing sources i.e.

Bloomberg;

·

we reviewed the correct classification of fair value

hierarchy based on IFRS 13, Fair Value Measurement; and

·

we reviewed the adequacy of disclosures in the

financial statements in accordance with IFRS as

adopted by the European Union.

Our planned audit procedures were completed without

material exception.

Notes 2, 8, 11 and 14 to the financial statements detailed the accounting policies, valuation and existence

of the financial assets and financial liabilities at fair value through profit or loss held by the Company at the

financial year-end and financial risk management, respectively.

Other information

Other information comprises information included in the annual report, other than the financial

statements and the auditor’s report thereon, including the Directors’ Report, which contains a Corporate

Governance Statement. The directors are responsible for the other information. Our opinion on the

financial statements does not cover the other information and, except to the extent otherwise explicitly

stated in our report, we do not express any form of assurance conclusion thereon.

Page

10

Independent auditor’s report to the members

of GraniteShares Financial Plc

Other information (continued)

In connection with our audit of the financial statements, our responsibility is to read the other information

and, in doing so, consider whether the other information is materially inconsistent with the financial

statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If we identify such material inconsistencies in the financial statements, we are required to determine

whether there is a material misstatement in the financial statements or a material misstatement of

the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard

Matters on which we are required to report by the Companies Act 2014

·

We have obtained all the information and explanations which we consider necessary for the

purposes of our audit.

·

In our opinion the accounting records of the Company were sufficient to permit the financial

statements to be readily and properly audited.

·

The financial statements are in agreement with the accounting records.

·

In our opinion the information given in the Directors’ Report is consistent with the financial

statements. Based solely on the work undertaken in the course of our audit, in our opinion, the

Directors’ report has been prepared in accordance with the requirements of the Companies Act

2014.

Matters on which we are required to report by exception

Based on our knowledge and understanding of the Company and its environment obtained in the course

of the audit, we have not identified material misstatements in the Directors’ Report.

Under the Companies Act 2014wearerequired to report to you if, in our opinion, the disclosures of

directors’ remuneration and transactions specified by sections 305 to 312 of the Act have not been made.

We have no exceptions to report arising from this responsibility.

Corporate governance statement

In our opinion, based on the work undertaken in the course of our audit of the financial statements, the

description of the main features of the internal control and risk management systems in relation to the

financial reporting process, specified for our consideration and included in the Corporate Governance

Statement, is consistent with the financial statements and has been prepared in accordance with section

1373(2)(c) of the Companies Act 2014.

Based on our knowledge and understanding of the Company and its environment obtained in the course

of our audit of the financial statements, we have not identified material misstatements in the description

of the main features of the internal control and risk management systems in relation to the financial

reporting process included in the Corporate Governance Statement.

Page

11

Independent auditor’s report to the members

of GraniteShares Financial Plc

Responsibilities of management and those charged with governance for the financial

statements

A

s explained more fully in the Directors’ responsibilities statement, management is responsible for the

preparation of the financial statements which give a true and fair view in accordance with IFRS as adopted

by the European Union, and for such internal control as they determine necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or

error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting unless management either intends to liquidate the Company or

to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting

process.

Responsibilities of the auditor for the audit of the financial statements

The objectives of an auditor are to obtain reasonable assurance about whether the financial statements as

a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and are considered material if, individually or

in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Irish

Auditing and Accounting SupervisoryAuthority’s websiteat:

http://www.iaasa.ie/getmedia/b2389013-

1cf6-

458b-9b8f-a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf

.

This description

forms part of our auditor’s report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of

irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk

that material misstatement in the financial statements may not be detected, even though the audit is

properly planned and performed in accordance with the ISAs (Ireland).

Based on our understanding of the Company and industry, we identified that the principal risks of non-

compliance with laws and regulations related to compliance with London Stock Exchange, Borsa Italiana

(Italian Stock Exchange), Euronext Paris (Paris Stock Exchange) and Deutsche Boerse (Frankfurt Stock

Exchange) Listing Rules and we considered the extent to which non-compliance might have a material

effect on the financial statements. We also considered those laws and regulations that have a direct

impact on the preparation of the financial statements such as the local law and tax: Companies Act 2014

and Irish tax legislation.

Page

12

Independent auditor’s report to the members

of GraniteShares Financial Plc

Responsibilities of the auditor for the audit of the financial statements (continued)

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

(continued)

The audit engagement partner considered the experience and expertise of the engagement team to

ensure that the team had appropriate competence and capabilities to identify or recognise non-

compliance with the laws and regulation. We evaluated management’s incentives and opportunities for

fraudulent manipulation of the financial statements (including the risk of override of controls) and

determined that the principal risks were related to posting inappropriate journal entries to manipulate

financial performance and management bias through judgements and assumptions, in particular in

relation to significant one-off or unusual transactions. We apply professional scepticism through the audit

to consider potential deliberate omission or concealment of significant transactions, or

incomplete/inaccurate disclosures in the financial statements.

In response to these principal risks, our audit procedures included but were not limited to:

·

enquiries of management and directors on the policies and procedures in place regarding

compliance with laws and regulations, including consideration of known or suspected

instances of non-compliance and whether they have knowledge of any actual, suspected or

alleged fraud;

·

inspection of the Company’s regulatory and legal correspondence and review of minutes of

board meetings during the year to corroborate inquiries made;

·

gaining an understanding of the Company’s current activities, the scope of authorisation and the

effectiveness of its control environment to mitigate risks related to fraud;

·

discussion amongst the engagement team in relation to the identified laws and regulations and

regarding the risk of fraud, and remainingalert to any indications of non-compliance or

opportunities for fraudulent manipulation of financial statements throughout the audit;

·

identifying and testing journal entries to address the risk of inappropriate journals and

management override of controls;

·

designing audit procedures to incorporate unpredictability around the nature, timing or extent

of our testing;

·

challenging assumptions and judgements made by management in their significant

accounting estimates;

·

review of the financial statement disclosures to underlying supporting documentation and

inquiries of management; and

·

engagement partner’s assessment of the engagement team’s collective competence and

capabilities to identify or recognise non-compliance with the laws and regulation.

The primary responsibility for the prevention and detection of irregularities including fraud rests with

those charged with governance and management. As with any audit, there remains a risk of non-detection

or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or

override of internal controls.

Page

13

Independent auditor’s report to the members

of GraniteShares Financial Plc

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the Company’s members, as a body, in accordance with section 391 of the

Companies Act 2014. Our audit work has been undertaken so that we might state to the Company’s

members those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

Company and the Company’s members as a body, for our audit work, for this report, or for the opinions

we have formed.

Report on other legal and regulatory requirements

We were appointed by the Board of Directors on 6 August 2020 to audit the financial statements for the

year ended 30 June 2020. The period of total uninterrupted engagement including previous renewals

and reappointments of the firm where the Company is considered as public interest entity is 3 years.

We have not provided non-audit services prohibited by the IAASA’s Ethical Standard and have remained

independent of the Company in conducting the audit.

The audit opinion is consistent with the additional report to the Board of

directors.

David Lynch

For and on behalf of

Grant Thornton

Chartered Accountants & Statutory Audit

Firm 13-18 City Quay

Dublin 2

25 October 2024

Page

14

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024

Financial year

ended

30 June

2024

Note€

Financial year

ended

30 June

2023

€

Net gain on financial assets at fair value through profit and loss

Net loss on financial liabilities at fair value through profit or loss

3

142,193,957

4

(142,193,957)

35,822,145

(35,822,145)

Net operating Income

-

Other income

Administrative expenses

5

3,093,507

6

(3,092,507)

2,448,254

(2,447,254)

Profit for the financial year before taxation

1,000

Taxation

7

(250)

Profit for the financial year after taxation

750

Other comprehensive income

-

Total comprehensive income for the financial year

750

All amounts relate to continuing operations.

The accompanying notes on pages

19

to

41

form an integral part of these financial statements.

Page 15

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2024

As at 30

June

2024

Note€

As at 30

June

2023

€

Assets

Financial assets at fair value through profit or loss

Cash and cash equivalents

Other receivables

8

245,078,546

10

1,896,626

9

312,682

165,698,150

1,354,119

135,290

247,287,854

167,187,559

Liabilities

Financial liabilities at fair value through profit or loss

Other payables

11

245,078,546

12

2,180,558

165,698,150

1,461,409

247,259,104

167,159,559

Equity

Share capital

Retained earnings

13

25,000

3,750

25,000

3,000

Total equity

28,750

28,000

Total equity and liabilities

247,287,854

167,187,559

The accompanying notes on pages

19

to

41

form an integral part of these financial statements.

The audited financial statements were approved and authorised for issue by the Board on 25 October 2024 and signed on

its behalf by:

.........................................

Raja Gul

Director

.........................................

Deirdre Brennan

Director (alternate)

Page 16

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024

For the financial year ended 30 June 2024

Share capital

€

Retained

earnings Total

€ €

As at 1 July 2023

Total comprehensive income for the financial year

25,000

-

3,000 28,000

750 750

As at 30 June 2024

25,000

3,75028,750

Financial year ended 30 June 2023

Share capital

€

Retained

earnings Total

€ €

At 1 July 2022

Total comprehensive income for the financial year

25,000

-

2,250 27,250

750 750

As at 30 June 2023

25,000

3,00028,000

The accompanying notes on pages

19

to

41

form an integral part of these financial statements.

Page 17

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024

Financial year

ended

30 June

2024

Note€

Financial year

ended

30 June

2023

€

Cash flows from operating activities

Profit on ordinary activities before taxation

1,000

Adjustments:

Net gains on financial assets at fair value through profit or loss

3

Net losses on financial liabilities at fair value through profit or loss

4

Movement in other receivables

Movement in other payables

(142,193,957)

142,193,957

(177,392)

719,149

(35,822,145)

35,822,145

114,165

202,475

542,757

317,640

Taxation paid

(250)

Net cash flows generated from operating activities

542,507

317,390

Cash flows from investing activities

TRS purchases

TRS sales

(201,188,492)

264,002,053

(240,977,908)

231,042,886

Net cash generated from/(used in) investing activities

62,813,561

(9,935,022)

Cash flows from financing activities

ETP subscriptions

11

ETP redemptions

11

201,188,492

(264,002,053)

240,977,908

(231,042,886)

Net cash flows (used in)/generated from financing activities

(62,813,561)

9,935,022

Net increase in cash and cash equivalents

542,507

317,390

Cash and cash equivalents at the beginning of financial year

1,354,119

1,036,729

Cash and cash equivalents at the end of financial year

10

1,896,626

1,354,119

The accompanying notes on pages

19

to

41

form an integral part of these financial statements.

Page 18

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 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. 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.

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 the issuance of the ETP Securities to enter into Total Return Swap Transactions (“TRS”) to hedge its 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

2.1

Statement of compliance

The audited financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)

as adopted by the European Union and those parts of Companies Act 2014 applicable to companies reporting under IFRS.

The accounting policies adopted by the Company have been applied consistently.

2.2

Basis 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.

2.3

New and amended standards and interpretations

New standards, amendments to standards, and interpretations in issue that have been adopted:

Standard

IFRS 17 and Amendments to IFRS 17

Amendments to IAS 1

Effective date

1 January 2023

Amendments to IAS 12

Title of Standard or Interpretation

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

Page 19

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

2

Material accounting policies (continued)

2.3

New 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

Amendments to IFRS 10 and IAS 28

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

IFRS 9 Financial Instruments

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

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.

2.4

Use 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).

2.5

Functional 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.

2.6

Financial instruments

Classification

The Company has adopted the following classifications for financial instruments:

Financial assets:

•At fair value through profit or loss: TRS.

•Amortised cost: Cash and cash equivalents and other receivables.

Page 20

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

2 Material accounting policies (continued)

2.6Financial instruments (continued)

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 of ETP 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 or sell the asset. From this date any gains and losses arising from 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.

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.

Page 21

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

2 Material accounting policies (continued)

2.6Financial instruments (continued)

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 utilising predefined formula and 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 value of 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 the risks 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.

Page 22

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

2 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.

2.10 Taxation

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.

Page 23

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

2 Material accounting policies (continued)

2.10 Taxation (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.

2.11 Other 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.

2.12 Administration 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.

2.13 Foreign 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.

2.14 Unearned 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.

3 Net gain on financial assets at fair value through profit or loss

Financial year

ended

30 June

2024

€

Financial year

ended

30 June

2023

€

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

45,150,019

97,043,938

50,127,132

(14,304,987)

142,193,957

35,822,145

Page 24

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 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”), Euronext Paris and Deutsche Boerse (the "Frankfurt

Stock Exchange").

4 Net loss on financial liabilities at far value through profit or loss

Financial year

ended

30 June

2024

€

Financial year

ended

30 June

2023

€

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

(45,150,019)

(97,043,938)

(50,127,132)

14,304,987

(142,193,957)

(35,822,145)

5 Other Income

Financial year

ended

30 June

2024

€

Financial year

ended

30 June

2023

€

Issuer profit

Other income

Management fee income

1,000

1,029,436

2,063,071

1,000

901,897

1,545,357

3,093,507

2,448,254

6 Administrative expenses

Financial year

ended

30 June

2024

€

Financial year

ended

30 June

2023

€

Audit and tax compliance fees

Corporate service fees

Other costs

Management fees

(74,215)

10,166

(965,387)

(2,063,071)

(72,432)

(13,311)

(816,154)

(1,545,357)

(3,092,507)

(2,447,254)

Audit and tax compliance fees breakdown:

Page 25

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

6 Administrative expenses (continued)

Financial year

ended

30 June

2024

€

Financial year

ended

30 June

2023

€

Auditor’s remuneration in respect of the financial year audit of financial

statements

Tax compliance

(63,500)

(10,715)

(61,718)

(10,714)

(74,215)

(72,432)

The Company has no employees and services required are contracted from third parties. TMF Administration Services Limited

allocated approximately EUR 1,000 (2023: EUR 1,000) from the corporate service fee received as consideration for the making

available of individuals to act as directors of the Company.

7 Taxation

Corporation tax based on profit for the financial year

Financial year

ended

30 June

2024

€

250

Financial year

ended

30 June

2023

€

250

Factors affecting Company tax charge for the financial year are explained below:

Financial year

ended

30 June

2024

€

Financial year

ended

30 June

2023

€

Profit on ordinary activities before taxation

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)

Current tax credit for the financial year

(250)

Financial year

ended

30 June

2024

€

Financial year

ended

30 June

2023

€

Corporation tax charged

Corporation tax paid

250

(250)

250

(250)

Ending corporation tax payable

-

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 accordance with the provisions

applicable to Case I of Schedule D of the TCA. There was no deferred tax during the financial year (2023: nil).

Page 26

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

8 Financial assets at fair value through profit or loss

As at As at

30 June 30 June

2024 2023

€€

Fair value of TRS245,078,546 165,698,150

9 Other receivables

As at As at

30 June 30 June

2024 2023

€€

Issuer profit receivable

Share capital receivable

Other receivable

5,000

18,750

288,932

4,000

18,750

112,540

312,682

135,290

Based on the review of the directors, no impairment was recorded for the year (2023:Nil) as the expected losses are

considered to be immaterial.

10 Cash and cash equivalents

As at

30 June

2024

€

As at

30 June

2023

€

Cash and cash equivalents

1,896,626

1,354,119

Based on the review of the Directors, no impairment is recorded (2023: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.

Page 27

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

11 Financial liabilities at fair value through profit or loss

As at 30

June

2024

€

As at 30

June

2023

€

1 July 2023

165,698,150

119,940,983

Cash flows:

Subscriptions

Redemptions

201,188,492

(264,002,053)

240,977,908

(231,042,886)

Non-cash:

Fair value movement

142,193,957

35,822,145

Fair value of ETP Securities

245,078,546

165,698,150

As at 30 June 2024 and 30 June 2023 the following are the ETP Securities in issue which are listed on the London Stock

Exchange, Borsa Italiana S.p.A. (the “Italian Stock Exchange”), Euronext Paris and Deutsche Boerse (the "Frankfurt Stock

Exchange").

The table below shows ETPs cross listed in London Stock Exchange, Borsa Italiana, Euronext Paris, and Deutsche Boerse

ISIN

BBG

Ticker

main

listing

As at 30

June

2024

€

As at 30

June

2023

€

Launch date

Security Name

GraniteShares 3x Long FAANG Daily

ETP

XS2679091996

3FNG

2,002,469

808,948

4 March 2021

GraniteShares 3x Long FATANG Daily

ETP

XS2696138077

3FTG

1,134,881

599,061

4 March 2021

GraniteShares 3x Short FATANG Daily

ETP

XS2696138150

XS2679084603

XS2693061900

XS2684011641

3SFT

FANG

FTNG

GFAM

149,908

1,098,240

787,869

832,193

51,891

738,320

578,156

576,394

4 March 2021

GraniteShares FAANG ETP

GraniteShares FATANG ETP

GraniteShares GAFAM ETP

GraniteShares 1x Short FATANG Daily

ETP

XS2696137772

SFTG

244,547

312,050

4 March 2021

GraniteShares 3x Long GAFAM Daily

ETP

XS2693059839

3GFM

888,794

1,250,094

4 March 2021

GraniteShares 3x Short FAANG Daily

ETP

XS2684011211

3SFG

126,150

50,318

4 March 2021

GraniteShares 3x Short GAFAM Daily

ETP

XS2693061819

3SGF

123,856

106,735

4 March 2021

GraniteShares 1x Short FAANG Daily

ETP

XS2679090162

SFNG

867,491

323,789

4 March 2021

GraniteShares 1x Short GAFAM Daily

ETP

XS2684011997

SGFM

243,433

327,734

4 March 2021

8,499,831

5,723,490

Page 28

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

11 Financial liabilities at fair value through profit or loss (continued)

The table below shows ETPs cross listed in London Stock Exchange, Borsa Italiana, and Euronext Paris.

ISIN

BBG

Ticker

main

listing

As at 30

June

2024

€

As at 30

June

2023

€

Launch date

Security Name

GraniteShares 3x Long AMD Daily ETP

Securities

GraniteShares 3x Long Apple Daily ETP

XS2377112110

XS2722161424

3LAM

3LAP

1,937,940

2,713,038

1,088,583

1,940,533

GraniteShares 3x Long Moderna Daily

ETP Securities

27 August 2021

29 June 2020

1 September

2021

XS2613356620

XS2617255687

XS2600249812

3LMO

3LNF

3LNI

662,205

2,820,585

1,846,929

326,058

1,925,922

2,239,257

1 July 2020

8 March 2021

GraniteShares 3x Long Netflix Daily ETP

GraniteShares 3x Long NIO Daily ETP

GraniteShares 3x Long NVIDIA Daily

ETP

XS2734938835

3LNV

60,204,356

12,973,904

29 June 2020

GraniteShares 3x Long Palantir Daily

ETP Securities

XS2620728860

3LPA

1,836,235

1,502,440

30 August 2021

GraniteShares 3x Short AMD Daily ETP

Securities

XS2838543457

3SAM

778,653

106,765

27 August 2021

GraniteShares 3x Short Moderna Daily

ETP Securities

XS2838543614

3SMO

809,678

220,371

27 August 2021

GraniteShares 3x Short Microsoft Daily

ETP

GraniteShares 3x Short NIO Daily ETP

XS2722160707

XS2626290311

3SMS

3SNI

518,260

1,471,508

314,041

526,203

29 June 2020

8 March 2021

GraniteShares 3x Long Alphabet Daily

ETP

XS2675292309

3LAL

1,452,819

1,675,469

4 February 2022

GraniteShares 3x Short NVIDIA Daily

ETP

XS2842095676

3SNV

5,256,898

1,560,837

1 July 2020

GraniteShares 3x Long Facebook Daily

ETP

XS2656469561

3LFB

2,415,587

6,575,459

4 February 2022

GraniteShares 3x Short Palantir Daily

ETP Securities

GraniteShares 3x Short UBER Daily ETP

XS2836484787

XS2626290238

3SPA

3SUB

459,200

387,127

687,378

316,322

27 August 2021

1 July 2020

GraniteShares 3x Long Microsoft Daily

ETP

XS2662640627

XS2656472193

XS2662640973

3LMS

3LTS

3LUB

9,709,524

628,308

25,927,328

2,940,798

60,538,920

1,980,148

4 February 2022

12 January 2022

29 June 2020

GraniteShares 3x Long Tesla Daily ETP

GraniteShares 3x Long UBER Daily ETP

GraniteShares 3x Long Amazon Daily

ETP

XS2675292218

3LZN

1,514,739

2,777,379

29 June 2020

GraniteShares 3x Short Alphabet Daily

ETP

GraniteShares 3x Short Apple Daily ETP

XS2671672223

XS2662641195

3SAL

3SAP

317,372

849,433

443,734

1,221,183

29 June 2020

GraniteShares 3x Short Facebook Daily

ETP

XS2671672819

XS2675292135

XS2656471039

3SFB

3SNF

3STS

611,592

506,578

5,816,196

324,159

1,280,574

8,277,300

29 June 2020

GraniteShares 3x Short Netflix Daily ETP

GraniteShares 3x Short Tesla Daily ETP

GraniteShares 3x Short Amazon Daily

ETP

XS2671672900

3SZN

556,011

249,476

29 June 2020

132,008,099

114,013,213

Page 29

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

11 Financial liabilities at fair value through profit or loss (continued)

The table below shows ETPs cross listed in London Stock Exchange and Borsa Italiana.

As at 30

June

2024

€

As at 30

June

2023

€

Security Name

GraniteShares 2x Long Zoom Daily ETP

ISIN

XS2376991654

BBG

Ticker

main

listing

2LZM

155,954

239,072

Launch date 4

February 2022

GraniteShares 3x Long Alibaba Daily

ETP

XS2842095320

3LAA

444,374

912,543

4 February 2022

GraniteShares 3x Long Coinbase Daily

ETP

XS2575914176

3LCO

2,109,269

2,267,026

4 February 2022

GraniteShares 3x Long MicroStrategy

Daily ETP

XS2617255760

3LMI

4,333,770

340,090

4 February 2022

GraniteShares 3x Long Spotify Daily

ETP

XS2435549261

3LPO

3,226,829

601,420

4 February 2022

GraniteShares 3x Long PayPal Daily

ETP

XS2596087671

3LPP

1,442,921

1,212,656

12 January 2022

GraniteShares 3x Long Square Daily

ETP

XS2596085972

3LSQ

1,234,285

396,961

12 January 2022

GraniteShares 3x Short Alibaba Daily

ETP

GraniteShares 2x Short Zoom Daily ETP

XS2842095759

XS2435549188

3SAA

2SZM

3,191,823

701,252

916,217

97,055

3 February 2022

4 February 2022

GraniteShares 3x Short MicroStrategy

Daily ETP

XS2836637525

3SMI

1,339,631

356,680

4 February 2022

GraniteShares 3x Short Spotify Daily

ETP

XS2838543531

3SPO

53,758

88,842

4 March 2021

GraniteShares 3x Short PayPal Daily

ETP

XS2376992389

3SPP

241,290

285,752

12 January 2022

GraniteShares 3x Short Square Daily

ETP

XS2836701123

3SSQ

822,310

572,140

12 January 2022

19,297,466

8,286,454

The table below shows ETPs cross listed in London Stock Exchange and Euronext Paris.

ISIN

BBG

Ticker

main

listing

As at 30

June

2024

€

As at 30

June

2023

€

Launch date

Security Name

GraniteShares 3x Long Airbus Daily ETP

Securities

XS2376933375

3LAR

430,298

589,440

27 August 2021

GraniteShares 3x Long Volkswagen

Daily ETP Securities

XS2376990417

3LVW

275,245

486,179

27 August 2021

GraniteShares 3x Short Airbus Daily

ETP Securities

XS2376937442

3SAR

169,785

129,113

27 August 2021

GraniteShares 3x Short Volkswagen

Daily ETP Securities

XS2376991142

3SVW

717,338

707,579

27 August 2021

1,592,666

1,912,311

Page 30

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

11 Financial liabilities at fair value through profit or loss (continued)

The table below shows ETPs cross listed in London Stock Exchange.

ISIN

BBG

Ticker

main

listing

As at 30

June

2024

€

As at 30

June

2023

€

Launch date

Security Name

GraniteShares 3x Long AstraZeneca

Daily ETP

XS2712624779

3LAZ

691,747

672,564

4 November 2019

GraniteShares 3x Long BAE Systems

Daily ETP

XS2722160020

3LBA

905,106

1,385,127

4 November 2019

GraniteShares 3x Long Barclays Daily

ETP

GraniteShares 3x Long BP Daily ETP

XS2708145904

XS2708145227

3LBC

3LBP

2,996,157

1,468,905

1,147,075

1,495,768

4 November 2019

GraniteShares 3x Long Glencore Daily

ETP

XS2712624423

3LGL

1,636,741

1,158,201

4 November 2019

GraniteShares 3x Long Diageo Daily

ETP

XS2712623888

3LDO

203,090

626,705

4 November 2019

GraniteShares 3x Long Lloyds Banking

Group Daily ETP

XS2708145573

3LLL

1,765,702

992,408

4 November 2019

GraniteShares 3x Long Royal Dutch

Shell Daily ETP

XS2710197851

3LRD

884,308

1,674,522

4 November 2019

GraniteShares 3x Long Rio Tinto Daily

ETP

XS2712624696

3LRI

1,595,402

1,259,226

4 November 2019

GraniteShares 3x Long Rolls-Royce

Daily ETP

XS2633107052

3LRR

52,681,201

11,837,367

6 November 2019

GraniteShares 3x Long Vodafone Daily

ETP

XS2703640123

3LVO

1,088,261

522,603

13 September

2019

GraniteShares 3x Short AstraZeneca

Daily ETP

XS2703639117

3SAZ

199,148

329,541

4 November 2019

GraniteShares 3x Short BAE Systems

Daily ETP

XS2698604563

3SBA

162,288

286,533

4 November 2019

GraniteShares 3x Short Barclays Daily

ETP

GraniteShares 3x Short BP Daily ETP

XS2620728605

XS2620728274

3SBC

3SBP

554,315

280,202

438,799

395,729

4 November 2019

6 November 2019

GraniteShares 3x Short Diageo Daily

ETP

XS2710197422

3SDO

464,692

217,422

4 November 2019

GraniteShares 3x Short Glencore Daily

ETP

XS2596087242

3SGL

930,442

552,220

6 November 2019

GraniteShares 3x Short Lloyds Banking

Group Daily ETP

XS2703639893

3SLL

401,419

162,931

4 November 2019

GraniteShares 3x Short Royal Dutch

Shell Daily ETP

XS2698604308

3SRD

427,350

879,326

4 November 2019

GraniteShares 3x Short Rio Tinto Daily

ETP

XS2596086350

3SRI

366,572

601,697

6 November 2019

GraniteShares 3x Short Rolls-Royce

Daily ETP

XS2698603599

3SRR

726,599

1,057,312

4 November 2019

GraniteShares 3x Short Vodafone Daily

ETP

XS2710197935

3SVO

464,526

666,349

29 August 2019

70,894,173

28,359,425

Page 31

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

11 Financial liabilities at fair value through profit or loss (continued)

The table below shows ETPs listed in Borsa Italiana.

ISIN

BBG

Ticker

main

listing

As at 30

June

2024

€

As at 30

June

2023

€

Launch date

Security Name

GraniteShares 3x Long UniCredit Daily

ETP

XS2435550947

XS2435551242

XS2435552216

3LCR

3LEN

3LNL

2,267,115

463,288

318,581

859,772

386,901

295,222

4 February 2022

GraniteShares 3x Long Eni Daily ETP

GraniteShares 3x Long Enel Daily ETP

GraniteShares 3x Long Intesa Sanpaolo

Daily ETP

GraniteShares 3x Long MIB Daily ETF

XS2435551598

XS2531766363

3LSP

3MIB

1,695,586

566,180

592,578

22,660

4 February 2022

9 June 2023

GraniteShares 3x Short UniCredit Daily

ETP

XS2435551168

XS2435551325

XS2531766447

XS2435552729

3SCR

3SEN

3SIT

3SNL

482,344

106,452

286,276

96,057

467,829

183,513

17,516

150,953

4 February 2022

9 June 2023

4 February 2022

GraniteShares 3x Short Eni Daily ETP

GraniteShares 3x Short MIB Daily ETF

GraniteShares 3x Short Enel Daily ETP

GraniteShares 3x Short Intesa Sanpaolo

Daily ETP

GraniteShares 5x Long MIB Daily ETF

GraniteShares 5x Short MIB Daily ETF

XS2435551671

XS2531767502

XS2531767767

3SSP

5MIB

5SIT

211,294

850,245

648,730

85,412

24,507

15,952

4 February 2022

9 June 2023

7,992,148

3,102,815

The table below shows ETPs cross listed in Euronext Paris.

ISIN

BBG

Ticker

main

listing

As at 30

June

2024

€

As at 30

June

2023

€

Launch Date

GraniteShares 3x Long AXA Daily ETP

Securities

XS2376944224

3LAX

825,149

616,471

27 August 2021

GraniteShares 3x Long BNP Daily ETP

Securities

XS2376951948

3LBN

215,418

225,785

27 August 2021

GraniteShares 3x Long Danone Daily

ETP Securities

XS2376974304

3LDA

156,284

162,156

27 August 2021

GraniteShares 3x Long LVMH Daily ETP

Securities

XS2376975020

3LLV

430,166

416,242

27 August 2021

GraniteShares 3x Long L’Oreal Daily

ETP Securities

XS2376974726

3LOR

162,856

223,863

27 August 2021

GraniteShares 3x Long Safran Daily ETP

Securities

XS2376975533

3LSA

709,911

331,916

27 August 2021

GraniteShares 3x Long Schneider

Electric Daily ETP Securities

XS2376976770

3LSE

802,943

412,408

27 August 2021

GraniteShares 3x Long Sanofi Daily ETP

Securities

XS2376975962

3LSN

175,888

299,987

27 August 2021

GraniteShares 3x Long

STMicroelectronics Daily ETP Securities

XS2376978982

3LST

77,463

215,786

27 August 2021

GraniteShares 3x Long TotalEnergies

Daily ETP Securities

XS2376979790

3LTO

185,911

125,865

27 August 2021

GraniteShares 3x Short AXA Daily ETP

Securities

XS2376951781

3SAX

78,690

118,207

27 August 2021

Page 32

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

11 Financial liabilities at fair value through profit or loss (continued)

ISIN

BBG

Ticker

main

listing

As at 30

June

2024

€

As at 30

June

2023

€

Launch Date

GraniteShares 3x Short BNP Daily ETP

Securities

XS2376952243

3SBN

108,546

179,582

27 August 2021

GraniteShares 3x Short Danone Daily

ETP Securities

XS2376974486

3SDA

75,084

88,799

27 August 2021

GraniteShares 3x Short LVMH Daily ETP

Securities

XS2376975376

3SLV

269,500

232,007

27 August 2021

GraniteShares 3x Short L’Oreal Daily

ETP Securities

XS2376974999

3SOR

82,097

86,797

27 August 2021

GraniteShares 3x Short Safran Daily

ETP Securities

XS2376975616

3SSA

42,172

126,840

27 August 2021

GraniteShares 3x Short Schneider

Electric Daily ETP Securities

XS2376976853

3SSE

18,543

58,739

27 August 2021

GraniteShares 3x Short Sanofi Daily

ETP Securities

XS2376976341

3SSN

71,496

81,817

27 August 2021

GraniteShares 3x Short

STMicroelectronics Daily ETP Securities

XS2376979287

3SST

286,232

253,522

27 August 2021

GraniteShares 3x Short TotalEnergies

Daily ETP Securities

XS2376979873

3STO

19,814

43,653

27 August 2021

4,794,163

4,300,442

12 Other payables

As at 30

June

2024

€

As at 30

June

2023

€

Corporate admin fee payable

Audit and tax payables

Arranger fees payable

Other payables

Unearned income

-

73,204

361,909

12,888

1,732,557

5,403

80,096

185,517

12,888

1,177,505

2,180,558

1,461,409

Unearned Income

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.

Page 33

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

13 Share capital

Authorised

As at 30 June 2024

No.€

As at 30 June 2023

No.€

Ordinary shares of €1 each

100,000,000100,000,000100,000,000100,000,000

Allotted and called up

As at 30 June 2024

No.€

As at 30 June 2023

No.€

Ordinary shares of €1 each

25,00025,00025,00025,000

The Company’s capital as at the financial year end is best represented by the ordinary shares outstanding.

The Company issued 25,000 shares which are held by TMF Management (Ireland) Limited on trust for charitable purposes.

On 26 March 2019, the shareholder paid up 25% of the share capital.

The Company monitors capital on the basis of the carrying amount of equity, less cash as presented in the Statement of

Financial Position.

14 Financial Risk Management

The Company’s financial instruments include the financial assets at fair value through profit or loss, other receivables, cash and

cash equivalents, financial liabilities at fair value through profit or loss and other payables that arise directly from its operations.

The Board has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company has exposure to the following risks from its use of financial instruments:

-Market risk;

-Credit risk;

-Liquidity risk;

-Operational risk; and

-Concentration risk

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies

and processes for measuring and managing risk and the Company’s management of capital.

14.1 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and securities prices, will affect the

Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage

and control market risk exposures within acceptable parameters, while optimising the return on risk. Market risk embodies the

potential for both losses and gains and includes currency risk and market price risk.

Foreign exchange risk

Foreign exchange risk is the risk that the fair value or cash flows of a financial instrument will fluctuate because of changes

in foreign currency.

Page 34

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

14 Financial Risk Management (continued)

14.1 Market risk (continued)

Foreign exchange risk (continued)

The ETP Securities issued by the Company are denominated in Euro, Pound Sterling and US Dollars. The proceeds of these

issuances are used to fund the purchase of the TRSs in Pound Sterling and US Dollars. These are retranslated to EUR using

the applicable exchange rates. As the base currency of the TRSs matches the base currency of the ETP Securities there is

deemed to be no currency risk to the Company.

The closing exchange rates used are as follows:

30/06/2024

USDEUR/USD 1.0705

GBPEUR/GBP 0.84638

30/06/2023

EUR/USD 1.0866

EUR/GBP 0.85828

TRS

Nominal

EUR equivalent

ETP issued

Nominal

EUR equivalent

Net exposure

Nominal

EUR equivalent

As at 30 June 2024

USD

GBP

EUR

159,805,396

70,894,173

14,378,977

(159,805,396)

(70,894,173)

(14,378,977)

-

245,078,546

(245,078,546)

-

As at 30 June 2023

TRS

Nominal

EUR equivalent

ETP issued

Nominal

EUR equivalent

Net exposure

Nominal

EUR equivalent

Financial assets

USD

GBP

EUR

128,023,157

28,359,425

9,315,568

(128,023,157)

(28,359,425)

(9,315,568)

-

165,698,150

(165,698,150)

-

Price risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market

prices (other than those arising from currency risk), whether those changes are caused by factors specific to the individual

financial instrument or its seller, or factors affecting similar financial instruments traded in the market. The Arranger monitors

the cash flows of the financial assets at fair value through profit or loss on a daily basis.

The Company uses the hierarchy below for determining and disclosing the fair value of financial instruments by valuation

technique:

The level in the fair value hierarchy in which each fair value measurement is categorised includes:

•Level 1: quoted prices (unadjusted) in an active market for identical assets or liabilities;

•Level 2: inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly (i.e.

prices) or indirectly (i.e. derived from prices); and

•Level 3: inputs for the asset or liabilities that are not based on observable market data (unobservable inputs).

Page 35

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

14 Financial Risk Management (continued)

14.1 Market risk (continued)

Price risk (continued)

Financial instruments measured at fair value through profit or loss

30 June 2024

Level 2

€

Total

€

Financial assets at FVTPL

Financial assets at fair value through profit or loss

245,078,546

Financial liabilities at FVTPL

Financial liabilities at fair value through profit or loss

(245,078,546)

30 June 2023

Level 2

€

Total

€

Financial assets at FVTPL

Financial assets at fair value through profit or loss

165,698,150

Financial liabilities at FVTPL

Financial liabilities at fair value through profit or loss

(165,698,150)

The ETP Securities and TRSs have the same value and are considered to be fair valued under level 2 as the prices are

compiled according to a formula which utilises a daily index for each ETP, based on market data as given by a third party

provider, net of expenses incurred.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the last day of the

accounting year. There were no transfers during the financial year between levels of the fair value hierarchy for financial assets

and liabilities which are recorded at fair value, (2023: same).

Sensitivity analysis:

Any changes in the values of the TRSs held by the Company would not have any effect on the equity or profit or loss of the

Company as any fair value fluctuations are ultimately borne by the holders of the ETP Securities issued by the Company. A

10% change in the value of the portfolio of TRSs held will result in a change in value of EUR 24,507,855 (2023: EUR

16,598,150). This will be offset by an equal change in the value of ETP securities issued, resulting in a net zero impact to the

equity or profit of the Company. Therefore, the Company is fully economically hedged against changes in prices of underlying

securities.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates.

As the Company has invested in TRSs to match the ETP Securities, there is deemed to be no interest rate risk to the

Company.

The Company has a bank balance at The Bank of New York. Due to the level of cash held in the bank account, the directors

do not believe that any movement in interest rates would affect the operations of the Company.

14.2 Credit risk

Credit risk arises from the possibility of obligors failing to meet their obligations to the Company and represents the most

significant category of risk.

Page 36

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

14 Financial Risk Management (continued)

14.2 Credit risk (continued)

The maximum exposure to the credit risk of the ETP holders at the reporting date was:

As at 30

June

2024

€

As at 30

June

2023

€

Financial assets at fair value through profit or loss

Other receivables

Cash and cash equivalents

245,078,546

312,682

1,896,626

165,698,150

135,290

1,354,119

247,287,854

167,187,559

The Swap counterparty is Natixis S.A., which has AA- (2023: AA-) credit rating from Standard & Poor’s.

The Company has 5 active bank accounts with The Bank of New York in currencies EUR, GBP and USD with a total Euro

equivalent balance of EUR 1,896,626 (2023:EUR 1,354,119).

Other receivables were settled after the financial year end (2023: same).

14.3 Liquidity risk

Liquidity risk is the risk that the Company may be unable to fulfil its obligations, whether expected or unexpected. ETP

Securities cannot be issued without a matching investment in a TRS being put in place. ETP Securities can be issued and

redeemed daily, therefore this is the earliest maturity date for the purposes of the maturity analysis below.

The return on each issuance of ETP Securities will be linked to the daily performance of the corresponding TRS. The

redemption amount of the ETP Securities will be derived from the liquidation of the corresponding TRS.

The following are the earliest contractual maturities of financial assets and financial liabilities:

Carrying

amount €

Less than one

year

€

One to five

years

€

More than five

years

€

As at 30 June 2024

Financial assets at fair value through

profit or loss

Other receivables

Cash and cash equivalents

245,078,546

312,682

1,896,626

245,078,546

312,682

1,896,626

-

247,287,854

-

Financial liabilities at fair value

through profit or loss

Other payables

245,078,546

2,180,558

245,078,546

2,180,558

-

247,259,104

-

Page 37

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

14 Financial Risk Management (continued)

14.3 Liquidity risk (continued)

Carrying

amount €

Less than one

year

€

One to five

years

€

More than five

years

€

As at 30 June 2023

Financial assets at fair value through

profit or loss

Other receivables

Cash and cash equivalents

165,698,150

135,290

1,354,119

165,698,150

135,290

1,354,119

-

167,187,559

-

Financial liabilities at fair value

through profit or loss

Other payables

165,698,150

1,461,409

165,698,150

1,461,409

-

167,159,559

-

14.4 Operational risk exposure

Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company’s

processes, personnel and infrastructure, and from external factors other than credit, markets and liquidity issues such as those

arising from legal and regulatory requirements and generally accepted standards of corporate behaviour.

The Board has established processes to manage operational risks. Those processes include appropriate segregation of

responsibilities and specific control activities. The Board delegates management and administration function to the

Administrator.

14.5 Concentration risk

Concentration risk can arise from the type of assets held in the portfolio, the maturity of assets, the concentration of sources

of funding, concentration of counterparties or geographical locations.

The following is the classification of ETPs per industry:

As at 30

June

2024

Number of ETP

issuances

As at 30

June

2023

Number of ETP

issuances

Aerospace and Defence

Banking

Automobiles

Beverages

Coal

Communication Technology

Customer Discretionary

Customer Staples

Financials

Healthcare

Industrials

Information technology

Metal and Mining

Oil and Gas

Pharmaceuticals

Telecommunication services

4

6

2

8

2

9

4

2

10

2

4

6

2

8

2

9

4

2

10

2

Page 38

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

14 Financial Risk Management (continued)

14.5 Concentration risk (continued)

As at 30

June

2024

Number of ETP

issuances

As at 30

June

2023

Number of ETP

issuances

Technology

40 40

Large Cap 4 4

109109

Due to the nature of the ETPs issued, any profit or loss arising from the concentration risk will pass on to the holders of the

ETPs. There is no residual risk remaining to the Company.

14.6 Offsetting Financial assets and Financial liabilities

The Company does not offset financial assets and financial liabilities. These are presented separately in the Statement of

Financial Position.

Financial assets and liabilities are offset, and the net amount presented in the Statement of Financial Position when, and only

when, the Company has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and

settle the liability simultaneously.

As at 30 June 2024

Gross amount of

recognised

financial assets €

Net amount of

recognised

financial assets €

Financial

instruments

received

€

Net amount

€

Financial assets at fair value through

profit or loss

245,078,546

-

Financial liabilities at fair value

through profit or loss

245,078,546

-

As at 30 June 2023

Gross amount of

recognised

financial assets €

Net amount of

recognised

financial assets €

Financial

instruments

received

€

Net amount

€

Financial assets at fair value through

profit or loss

165,698,150

-

Financial liabilities at fair value

through profit or loss

165,698,150

-

Page 39

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

14 Financial Risk Management (continued)

14.6 Offsetting Financial assets and Financial liabilities (continued)

The following is a reconciliation of the liabilities arising from financing activities.

Long-term

borrowings €

Short-term

borrowings €

Lease Liabilities €

Total

€

Beginning balance 1 July 2023

165,698,150

-

165,698,150

Cash flows:

- Redemptions

- Subscriptions

(264,002,053)

201,188,492

-

(264,002,053)

201,188,492

Non-cash: -

Fair value

- Reclassification

142,193,957

-

142,193,957

-

As at 30 June 2024

245,078,546

-

245,078,546

Long-term

borrowings €

Short-term

borrowings €

Lease Liabilities €

Total

€

Beginning balance 1 July 2022

119,940,983

-

119,940,983

Cash flows:

- Redemptions

- Subscriptions

(231,042,886)

240,977,908

-

(231,042,886)

240,977,908

Non-cash: -

Fair value

- Reclassification

35,822,145

-

35,822,145

-

As at 30 June 2023

165,698,150

-

165,698,150

15 Contingent assets, liabilities and commitments

There were no contingent liabilities or commitments as of 30 June 2024 (2023: nil). Contingent liabilities are assessed

continually to determine whether transfers of economic benefits have become probable. Where future transfers of economic

benefits change from previously disclosed contingent liabilities, provisions are recognised in the financial year in which the

changes in probability occur.

16 Related party transactions

GraniteShares Jersey Limited is a related party as they act as the Arranger for the Company. It supplies and/or arranges for the

supply of all administrative services to the Company. In return, the Company pays the Arranger an arranger fee. Total arranger

fee for the year amounted to EUR 2,063,071 (2023: EUR 1,545,357).

The Board is considered the key management personnel of the Company for the financial year ended 30 June 2024. The Board

is considered to have authority and responsibility for planning and directing activities of the Company being the purchase and

sale of the underlying portfolio. Raja Gul and Aileen Mannion, employees of TMF Management Ireland Limited were directors

of the Company during the financial year.

Page 40

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (CONTINUED)

16 Related party transactions (continued)

The Company engages the Administrator for all management and administration functions to manage the operational risk of

direct or indirect loss arising from a wide variety of causes associated with the Company’s processes, and from external factors

other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally

accepted standards of corporate behaviour. The Corporate Administrator is entitled to receive administrative fees for the

services it provides per the terms and conditions of their agreement. TMF Administration Services Limited provides corporate

administration services to the Company at arm’s length commercial rates.

During the financial year, the Company incurred a fee of EUR 10,166 (2023: EUR 13,311) relating to administration services

provided by the Corporate Administrator. The directors, as employees of the Corporate Administrator, had an interest in these

fees in their capacity as directors.

The terms of the corporate services agreement in place between the Company and the Corporate Administrator provides for

a single fee for the provision of corporate administration services (including the making available of individuals to act as

directors of the Company). As a result, the allocation of fees between the different services provided is a subjective and

approximate calculation.

Pursuant to Section 305A(1)(a) of the Companies Act 2014 TMF Administration Services Limited allocated EUR 1000 (2023:

EUR 1,000) of the corporate service fee received as consideration for the making available of individuals to act as directors of

the Company.

The individuals acting as directors do not (and will not), in their personal capacity or any other capacity, receive any fee for

acting or having acted as directors of the Company.

There were no other contracts of any significance in relation to the business of the Company in which the director had any

interest, as defined in the Companies Act 2014, at any time during the financial year.

The Company has issued nil shares (2023: Nil) to TMF Management (Ireland) Limited on trust for GraniteShares Financial

plc.

Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were given or

received. Outstanding balances are usually settled in cash.

17 Significant events during the year

On 1 January 2024, the Company changed address to Ground Floor, Two Docklands Central, Guild Street, North Dock, D01

K2C5, Ireland.

18 Significant subsequent events

There are no significant subsequent events which need to be adjusted or disclosed in the audited financial statements.

19 Charges

The Issuer’s obligations to the Noteholders (and certain other Issuer secured parties) are secured pursuant to the Security

Deed between, amongst others, the Issuer and BNY Mellon Corporate Trustee Services Limited in its capacity as Note Trustee.

20 Approval of financial statements

The audited financial statements were approved and authorised for issue by the Board on 25 October 2024.

Page 41