Untitled document

Company registration number: 608059

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

TABLE OF CONTENTS

Pages

COMPANY INFORMATION2

DIRECTORS’ REPORT3 – 6

STATEMENT OF DIRECTORS’ RESPONSIBILITIES7

INDEPENDENT AUDITOR’S REPORT8 – 14

STATEMENT OF COMPREHENSIVE INCOME15

STATEMENT OF FINANCIAL POSITION16

STATEMENT OF CHANGES IN EQUITY17

STATEMENT OF CASH FLOWS18

NOTES TO THE FINANCIAL STATEMENTS19 – 39

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

2

COMPANY INFORMATION

DIRECTORS

Romira Hoxha (appointed 21 September 2019)

Jason Lee (appointed 16 April 2020 and resigned 01 April 2022)

Raja Gul (appointed 01 April 2022)

Déaglán Ó Dubhda (appointed 31 December 2021 as director-alternate)

COMPANY REGISTRATION NUMBER

608059

COMPANY REGISTERED OFFICE

3rd Floor Kilmore House

Park Lane

Spencer Dock

Dublin 1, D01 YE64

Ireland

COMPANY SECRETARY AND

ADMINISTRATOR

TMF Administration Services Limited

3rd Floor Kilmore House

Park Lane

Spencer Dock

Dublin 1, D01 YE64

Ireland

NOTE TRUSTEE, PRINCIPAL

PAYING AGENT, SWAP COLLATERAL

CUSTODIAN AND ACCOUNT BANK

The Bank of New York Mellon

One Canada Square

London E14 5AL

England

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 LLP

70 Sir John Rogerson’s Quay

Grand Canal Dock

Dublin 2

Ireland

English Law Advisers

Linklaters LLP

One Silk Street

London, EC2Y 8HQ

United Kingdom

Jersey Law Advisers

Carey Olsen Jersey LLP

47 Esplanade

St Helier

Jersey JE1 0BD

Channel Islands

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

3

DIRECTORS’ REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

Thedirectors presentthe Directors’ Report and the audited financial statements of GraniteShares Financial Public Limited

Company (the “Company”) for the financial year ended 30 June 2022.

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

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 Doutsche 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 (“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 2022, there were 106 ETPs in issuance (2021: 54 ETPs). The purchases over the

financial year amounted to €317,268,102 (2021: €133,766,166) with sales of €202,073,273 (2021: €8,111,244).

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 (2021: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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

4

DIRECTORS’ REPORT (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

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 (2021: €1,000). The corporation tax

charge for the financial year is €250 (2021: €250).

No dividends were recommended to be paid for the financial year ended 30 June 2022 (2021: €nil).

Financial year ended

30 June 2022

Financial year ended

30 June 2021

€

Key performance indicators

(a) Net losses on financial assets at FVTPL

(b) Net gains on financial liabilities at FVTPL

(c) Financial assets at FVTPL

(d) Financial liabilities at FVTPL

(113,921,136)

113,921,136

119,940,983

(119,940,983)

(9,147,643)

9,147,643

118,667,290

(118,667,290)

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, credit risk, liquidity risk, concentration risk and

operational risk are disclosed in note 14 to the audited financial statements.

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.

In making this assessment the directors have considered the impact of COVID-19 and Ukraine-Russia war on the

Company’s business.

Thenatureof theCompany’sbusiness dictates that theoutstandingETPsmay beredeemedat any timeby 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 TRS’s, 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

Thedirectors andthecompanysecretary arelistedonpage2. RomiraHoxha andRajaGularethecurrent activedirectors.

During the financial year Jason Lee resigned as a director while Déaglán Ó Dubhda was appointed as a director-alternate. 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 2022 did not hold any shares, debentures

or loan stock of the Company on that date or during the financial year (2021: same).

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

5

DIRECTORS’ REPORT (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

POWERS OF DIRECTORS

The Board is 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.

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) acompliancepolicy statement has beendrawn upas requiredby Section225(3)(a) of theAct settingout theCompany’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 obligation; 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

Administratoris also contractually obliged to prepare the annual report including financial statements forreviewand 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 atdetecting or preventingthe risk of significant deficiencies in financial

reportingforeverysignificantaccountinthefinancialstatementsandtherelatednotesintheCompany’sfinancialstatements.

ThedirectorsdelegatetheassetvaluationfunctiontotheArrangerwhooperatesasophisticatedsystemofcontrolstoensure

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.

NodirectorhasasignificantdirectorindirectholdingofsecuritiesintheCompany.Nopersonhasanyspecialrightsofcontrol

over the Company’s share capital. There are no restrictions on voting rights.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

6

DIRECTORS’ REPORT (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

CORPORATE GOVERNANCE STATEMENT (CONTINUED)

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.

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 3rd Floor, Kilmore House, Park Lane, Spencer Dock,

Dublin 1, D01 YE64, Ireland.

SHAREHOLDERS’ 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 current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the

economic risk of trading in these countries and other impacted countries within the region. Management is closely

monitoring the evolving situation. Management has not yet observed or determined the financial impact of these events.

SIGNIFICANT SUBSEQUENT EVENTS

The significant subsequent events in relation to the Company are disclosed in note 17.

POLITICAL DONATIONS

The Company did not make any political donations during the financial year (2021: nil).

RESEARCH AND DEVELOPMENT

The Company did not engage in any research and development activity during the financial year (2021: 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

Thedirectorsbelievethattheyhavetakenallthestepsnecessarytomakethemselvesawareofanyrelevantauditinformation

and have established that the Company’s statutory auditor is aware of that information. In so far as they are aware, there is no

relevant audit information of which the Company’s statutory auditor is unaware.

This report was approved by the Board on 26 October 2022 and signed on its behalf by:

____________________

Raja Gul

Director

______________________

Romira Hoxha

Director

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

7

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

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 judgements 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; and

·

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.

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 preparationof financialstatements 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 26 October 2022 and signed on its behalf by:

______________________

Raja Gul

Director

______________________

Romira Hoxha

Director

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

8

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 2022, and the related notes to the

financial statements, including the summary of significant 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, the Company’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 2022 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 entity. 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 director’s use of going concern basis of

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

assessment of the entity’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 inquiries 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.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRANITESHARES FINANCIAL PLC (continued)

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a

l

u

a

t

i

on of f

i

n

a

nc

i

a

l

a

sse

t

s

a

nd

li

a

b

ili

t

i

es

a

t

f

a

i

r v

a

l

ue

t

hrou

g

h prof

i

t

or

l

oss



E

x

i

s

t

ence of f

i

n

a

nc

i

a

l

a

sse

t

s

a

nd

li

a

b

ili

t

i

es

a

t

f

a

i

r v

a

l

ue

t

hrou

g

h prof

i

t

or

l

oss

How we tailored the audit scope

The Comp

a

n

y

i

s

a

pub

li

c

li

m

i

t

ed comp

a

n

y

a

nd qu

a

li

f

i

es for

t

he re

g

i

me con

t

a

i

ned

i

n

S

ec

t

i

on 110 of

t

he

I

r

i

sh T

ax

es

Conso

li

d

a

t

i

on Ac

t

,

1997

.

The Comp

a

n

y

h

a

s

li

s

t

ed e

x

ch

a

n

g

e

t

r

a

ded produc

t

s

(

“

E

TP

S

ecur

i

t

i

es” or

(

“

E

TPs”

))

on

t

he

London

S

t

ock

E

x

ch

a

n

g

e

,

It

a

li

a

n

S

t

ock

E

x

ch

a

n

g

e

,

E

urone

x

t

P

a

r

i

s

,

a

nd Fr

a

nkfur

t

S

t

ock

E

x

ch

a

n

g

e

.

The

D

i

rec

t

ors con

t

ro

l

t

he

a

ff

a

i

rs of

t

he Comp

a

n

y

a

nd

t

he

y

a

re respons

i

b

l

e for

t

he over

a

ll

i

nves

t

men

t

po

li

c

y,

wh

i

ch

t

he

y

de

t

erm

i

ned

.

The Comp

a

n

y

en

gag

es TMF Adm

i

n

i

s

t

r

a

t

i

on

S

erv

i

ces L

i

m

i

t

ed

(

or

t

he “Adm

i

n

i

s

t

r

a

t

or”

)

t

o m

a

n

ag

e

cer

t

a

i

n du

t

i

es

a

nd respons

i

b

ili

t

i

es

i

nc

l

ud

i

n

g

t

he m

a

i

n

t

en

a

nce of

t

he

a

ccoun

t

i

n

g

records

.

The f

i

n

a

nc

i

a

l

s

t

a

t

emen

t

s

,

wh

i

ch rem

a

i

n

t

he respons

i

b

ili

t

y

of

t

he

D

i

rec

t

ors

,

a

re prep

a

red on

t

he

i

r beh

a

l

f b

y

t

he Adm

i

n

i

s

t

r

a

t

or

.

We

t

a

il

ored

t

he scope of our

a

ud

i

t

a

k

i

n

g

i

n

t

o

a

ccoun

t

he

t

y

pes of

i

nves

t

men

t

s w

i

t

h

i

n

t

he Comp

a

n

y,

t

he

i

nvo

l

vemen

t

of

t

h

i

rd p

a

r

t

y

serv

i

ce prov

i

ders

,

t

he

a

ccoun

t

i

n

g

processes

a

nd con

t

ro

l

s

,

a

nd

t

he

i

ndus

t

r

y

i

n wh

i

ch

t

he

Comp

a

n

y

oper

a

t

es

.

I

n es

t

a

b

li

sh

i

n

g

t

he over

a

ll

a

ppro

a

ch

t

o our

a

ud

i

t

we

a

ssessed

t

he r

i

sk of m

a

t

er

i

a

l

m

i

ss

t

a

t

emen

t

a

t

a

Comp

a

n

y

l

eve

l

,

t

a

k

i

n

g

i

n

t

o

a

ccoun

t

he n

a

t

ure

,

li

ke

li

hood

a

nd po

t

en

t

i

a

l

m

ag

n

i

t

ude of

a

n

y

m

i

ss

t

a

t

emen

t

.

As p

a

r

t

of our r

i

sk

a

ssessmen

t

,

we cons

i

dered

t

he Comp

a

n

y

’s

i

n

t

er

a

c

t

i

on w

i

t

h

t

he Adm

i

n

i

s

t

r

a

t

or

,

a

nd we

a

ssessed

t

he con

t

ro

l

env

i

ronmen

t

i

n p

l

a

ce

a

t

he Adm

i

n

i

s

t

r

a

t

or

.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

10

I

ND

E

P

E

ND

E

N

T

A

UD

IT

O

R’

S

RE

P

O

RT T

O

THE

M

E

M

B

ER

S

O

F GR

A

N

ITE

S

H

A

RE

S

FI

N

A

N

CI

A

L

P

LC

(c

o

nt

i

nu

e

d

)

Key audit matters (continued)

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 and the reliability of the control environment, helped us to determine the scope of our audit and the

nature,timing and extent of ouraudit proceduresand 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 2022. 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 60%, 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.

Significant auditor’s attention was deemed

appropriate because of the materiality of

the financial assets at fair value through

performance of the Company.

Bloomberg; and

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

D

e

scr

i

pt

i

o

n

o

f s

i

gn

i

f

i

cant matt

e

r

A

ud

i

t r

e

sp

o

ns

e

t

o

s

i

gn

i

f

i

cant matt

e

r

There is a risk that the financial assets and The following audit work has been performed to address the risks:

liabilities at fair value through profit or

·

we held discussions with management, conducted a

loss included in the Statement of Financial

walkthrough to gain an understanding of the valuation of

Position as at 30 June 2022 are not valued

the TRSs and ETPs, and performed walkthrough of at fair

value in line with IFRS 9 Financial

controls relevant to the valuation process;

Instruments.

·

we tested a sample of TRS purchases and sales by tracing

the sample to confirmation reports, and ETPs

subscriptions and redemptions by tracing to issuance

profit or loss. In addition, the valuation is

deeds and redemption notices and repricing to

also a key contributor to the financial

·

we re-performed the assigned valuation of each

instrument using independent pricing sources such as

Bloomberg;

·

we performed assessment as to reasonableness of fair

value hierarchy classification; and

·

we reviewed the related disclosures in the financial

statements in accordance with IFRS.

Our planned audit procedures were completed without material

exception.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

11

I

ND

E

P

E

ND

E

N

T

A

UD

IT

O

R’

S

RE

P

O

RT T

O

THE

M

E

M

B

ER

S

O

F GR

A

N

ITE

S

H

A

RE

S

FI

N

A

N

CI

A

L

P

LC

(c

o

nt

i

nu

e

d

)

Key audit matters (continued)

the TRSs and ETP Securities included in

the Statement of Financial Position did

not exist or that they were not held in the

Company’s name at the financial year end,

whichcouldresultinamaterial

misstatement.

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

Description of significant matter

Audit response to significant matter

Financial assets and liabilities at fair value The following audit work has been performed to address the risks:

through profit or loss represent a

·

we performed walkthrough of controls relevant to the

principalelementofthefinancial

existence process

statements. We considered the risk that

·

we obtained direct independent confirmation of the

existence of these instruments with the relevant swap

counterparty, Natixis S.A., charged with safeguarding the

Company’s assets and agreed to accounting records; and

·

we obtained direct independent confirmation of the

existence of these instruments with the relevant note

trustee, the Bank of New York, charged with safeguarding

the Company’s liabilities and agreed to accounting records.

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.

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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

12

I

ND

E

P

E

ND

E

N

T

A

UD

IT

O

R’

S

RE

P

O

RT T

O

THE

M

E

M

B

ER

S

O

F GR

A

N

ITE

S

H

A

RE

S

FI

N

A

N

CI

A

L

P

LC

(c

o

nt

i

nu

e

d

)

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

beenpreparedinaccordancewiththerequirementsoftheCompaniesAct2014.

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 2014 we are required 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.

Responsibilities of management and those charged with governance for the financial statements

As explained more fully in the Directors’ responsibilities statement, the Directors are 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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

13

I

ND

E

P

E

ND

E

N

T

A

UD

IT

O

R’

S

RE

P

O

RT T

O

THE

M

E

M

B

ER

S

O

F GR

A

N

ITE

S

H

A

RE

S

FI

N

A

N

CI

A

L

P

LC

(c

o

nt

i

nu

e

d

)

Responsibilities of the auditor for the audit of the financial statements

The auditor’s objectives 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 their

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.

As part of an audit in accordance with ISAs (Ireland), theauditor willexercise professional judgment and maintain

professional scepticism throughout the audit. The auditor will also:

·

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud

or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that

is sufficient and appropriate to provide a basis for their opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

·

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the company’s internal control.

·

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by management.

·

Conclude on the appropriateness of management’s use of the going concern basis of accounting and,

based on the audit evidenceobtained, whether amaterial uncertainty exists related to events or conditions

that may cast significant doubt on the company’s ability to continue as a going concern. If they conclude that

a material uncertainty exists, they are required to draw attention in the auditor’s report to the related

disclosures in the financial statements or, if such disclosures are inadequate, to modify their opinion.

Their conclusions are based on the audit evidence obtained up to the date of the auditor’s report.

However, future events or conditions may cause the company to cease to continue as a going concern.

·

Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events in a

manner that achieves a true and fair view.

The auditor communicates with those charged with governance regarding, among other matters, the planned

scope and timing of the audit and significant audit findings, including any significant deficiencies in internal

control that may be identified during the audit.

The auditor also provides those charged with governance with a statement that they have complied with relevant

ethical requirements regarding independence, including the Ethical Standards for Auditors (Ireland), and

communicates with them all relationships and other matters that may reasonably be thought to bear on their

independence, and where applicable, related safeguards.

GR

AN

I

T

E

S

HA

RE

S

F

I

NAN

C

I

AL

P

U

B

L

I

C

L

I

M

I

T

E

D

CO

M

P

AN

Y

14

I

ND

EPE

ND

E

N

T

AUD

I

TOR

’S

REPORT

TO

THE

M

E

MB

ER

S

OF

GR

AN

I

TE

S

H

A

RE

S

F

I

NAN

C

I

A

L

PLC

(co

n

t

i

nu

e

d

)

R

espons

i

b

ili

t

i

es o

f

the aud

i

tor

f

or the aud

i

t o

f

the

fi

nanc

i

a

l

statements

(

cont

i

nued

)

From

t

he m

a

tt

ers commun

i

c

a

t

ed w

i

t

h

t

hose ch

a

r

g

ed w

i

t

h

g

overn

a

nce

,

t

he

a

ud

i

t

or de

t

erm

i

nes

t

hose m

a

tt

ers

t

h

a

t

were of mos

t

s

i

g

n

i

f

i

c

a

nce

i

n

t

he

a

ud

i

t

of

t

he f

i

n

a

nc

i

a

l

s

t

a

t

emen

t

s of

t

he curren

t

per

i

od

a

nd

a

re

t

herefore

t

he ke

y

a

ud

i

t

m

a

tt

ers

.

These m

a

tt

ers

a

re descr

i

bed

i

n

t

he

a

ud

i

t

or’s repor

t

un

l

ess

l

a

w or re

g

u

l

a

t

i

on prec

l

udes pub

li

c

d

i

sc

l

osure

a

bou

t

he m

a

tt

er or when

,

i

n e

x

t

reme

l

y

r

a

re c

i

rcums

t

a

nces

,

t

he

a

ud

i

t

or de

t

erm

i

nes

t

h

a

t

a

m

a

tt

er shou

l

d no

t

be commun

i

c

a

t

ed

i

n

t

he repor

t

bec

a

use

t

he

a

dverse consequences of do

i

n

g

so wou

l

d re

a

son

a

b

l

y

be e

x

pec

t

ed

t

o

ou

t

we

i

g

h

t

he pub

li

c

i

n

t

eres

t

benef

i

t

s of such commun

i

c

a

t

i

on

.

T

he purpose o

f

our aud

i

t work and to whom we owe our respons

i

b

ili

t

i

es

Th

i

s repor

t

i

s m

a

de so

l

e

l

y

t

o

t

he comp

a

n

y

’s members

,

a

s

a

bod

y,

i

n

a

ccord

a

ncew

i

t

h sec

t

i

on 391 of

t

heComp

a

n

i

es Ac

t

2014

.

O

ur

a

ud

i

t

work h

a

s been under

t

a

ken so

t

h

a

t

we m

i

g

h

t

s

t

a

t

e

t

o

t

he comp

a

n

y

’s members

t

hose m

a

tt

ers we

a

re

requ

i

red

t

o s

t

a

t

e

t

o

t

hem

i

n

a

n

a

ud

i

t

or’s repor

t

a

nd for no o

t

her purpose

.

To

t

he fu

ll

es

t

e

x

t

en

t

perm

i

tt

ed b

y

l

a

w

,

we

do no

t

a

ccep

t

or

a

ssume respons

i

b

ili

t

y

t

o

a

n

y

one o

t

her

t

h

a

n

t

he comp

a

n

y

a

nd

t

he comp

a

n

y

’s members

a

s

a

bod

y,

for

our

a

ud

i

t

work

,

for

t

h

i

s repor

t

,

or for

t

he op

i

n

i

ons we h

a

ve formed

.

R

eport on other

l

ega

l

and regu

l

atory requ

i

rements

We were

a

ppo

i

n

t

ed b

y

t

he Bo

a

rd of

D

i

rec

t

ors on 6 Au

g

us

t

2020

t

o

a

ud

i

t

he f

i

n

a

nc

i

a

l

s

t

a

t

emen

t

s for

t

he f

i

n

a

nc

i

a

l

y

e

a

r

ended 30

J

une 2022

.

The per

i

od of

t

o

t

a

l

un

i

n

t

errup

t

ed en

gag

emen

t

i

nc

l

ud

i

n

g

ous renew

a

l

s

a

nd

re

a

ppo

i

n

t

men

t

s of

t

he f

i

rm

i

s 1

y

e

a

r

.

We

a

re respons

i

b

l

e for ob

t

a

i

n

i

n

g

re

a

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GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

15

STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

Financial year ended

Notes30 June 2022

€

Financial year ended

30 June 2021

€

3(113,921,136)

(9,147,643)

Net losses on financial assets at fair value through

profit or loss

Net gains on financial liabilities at fair value through

profit or loss

Net operating Income

4 113,921,136

-

9,147,643

-

Other income

Administration expenses

Profit for the financial year before taxation

5 2,499,905

6 (2,498,905)

1,000

940,119

(939,119)

1,000

Taxation

Profit for the financial year after taxation

Other comprehensive income

7 (250)

750

-

(250)

750

-

Total comprehensive income for the financial year750750

The accompanying notes on pages 19 to 39 form an integral part of these audited financial statements. These results

arise from continuing operations.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

16

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2022

As at

30 June 2022

€

As at

30 June 2021

€

Notes

ASSETS

Financial assets at fair value through profit or loss8

Other receivables9

Cash and cash equivalents 10

TOTAL ASSETS

119,940,983

249,455

1,036,729

121,227,167

118,667,290

210,968

15,321

118,893,579

LIABILITIES

Financial liabilities at fair value through profit or loss11

Corporation tax payable 7

Other payables12

TOTAL LIABILITIES

119,940,983

-

1,258,934

121,199,917

118,667,290

-

199,789

118,867,079

EQUITY

Share capital13

Retained earnings

25,000

2,250

25,000

1,500

27,250

26,500

TOTAL EQUITY AND LIABILITIES121,227,167118,893,579

The accompanying notes on pages 19 to 39 form an integral part of these audited financial statements.

The audited financial statements were approved and authorised for issue by the Board on 26 October 2022 and signed

on its behalf by:

______________________

Raja Gul

Director

______________________

Romira Hoxha

Director

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

17

STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

For the financial year ended 30 June 2022

Share

Capital

€

Retained earnings Total

€ €

As at 1 July 2021

Total comprehensive income for the financial year

As at 30 June 2022

25,000

-

25,000

1,500 26,500

750

2,250

27,250

For the financial year ended 30 June 2021

Share

Capital

€

Retained earnings Total

€ €

As at 1 July 2020

Total comprehensive income for the financial year

As at 30 June 2021

25,000

-

25,000

750 25,750

750

1,500

26,500

The accompanying notes on pages 19 to 39 form an integral part of these audited financial statements.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

18

STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

The accompanying notes on pages 19 to 39 form an integral part of these audited financial statements.

Notes Financial year ended Financial year ended

30 June 2022

€

30 June 2021

€

Cash flows from operating activities

Profit on ordinary activities before taxation1,0001,000

(113,921,136)

(9,147,643)

Adjustments:

Net losses on financial assets at fair value through profit or

loss3

Net gains on financial liabilities at fair value through profit or

loss4

113,921,136

9,147,643

Movements in other receivables

Movements in other payables

(38,487)

1,059,145

98,934

(90,363)

Taxation paid

1,021,658

(250)

9,571

(500)

Net cash generated from operating activities

1,021,408

9,071

Cash flows from investing activities

TRS purchases

TRS sales

Net cash used in investing activities

11 (317,268,102)

11 202,073,273

(115,194,829)

(133,766,166)

8,111,244

(125,654,922)

Cash flows from financing activities

Issuance of ETP Securities

Repayment of ETP Securities

Net cash generated from financing activities

11 317,268,102

11 (202,073,273)

133,766,166

(8,111,244)

115,194,829

125,654,922

Net increase in cash and cash equivalents

1,021,4089,071

Cash and cash equivalents at beginning of of the financial

year

15,3216,250

Cash and cash equivalents at the end of the financial year101,036,72915,321

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

19

NOTES TO THE AUDITED FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

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 ofthe 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 3rd Floor, Kilmore House, Park Lane, Spencer Dock, Dublin 1, D01 YE64,

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 beenlisted fortradingon the London Stock Exchange, Borsa Italiana S.p.A. (the “Italian

Stock Exchange”), Euronext Paris and Doutsche 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 ETS 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.ACCOUNTING POLICIES

(a)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. The audited financial statements have been prepared on a going concern basis.

(b)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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

20

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2.ACCOUNTING POLICIES (CONTINUED)

(c)New and amended standards and interpretations

Standards, amendments, and interpretations are not yet effective and have not been adopted early by the

Company

At the date of authorisation of these financial statements, the Company has not applied the following new and

revised IFRS Standards that have been issued but are not yet effective:

Standard

Title of Standard or

Interpretation

Effective date

IFRS 17 and Amendments to

IFRS 17

IFRS 17 Insurance Contracts

and Amendments to IFRS 17

1 January 2023

Amendments to IAS 1

Classification of Liabilities as

Current or Non-current

1 January 2023

Amendments to IAS 12

DeferredTaxrelatedto

Assets and Liabilities arising

from a Single Transaction

1 January 2023

Amendments to IAS 8DefinitionofAccounting1 January 2023

Estimates

The directors do not expect that the adoption of the Standards listed above will have a material impact on the

financial statements of the Company in future periods.

(d)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

business model (see note 2(f)), determining the functional currency (see note 2(e)) and financial instruments at fair

value. See note 14 for further discussion on how the fair values of the assets and liabilities are determined.

(e)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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

21

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2.ACCOUNTING POLICIES (CONTINUED)

(f)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.

Financial liabilities:

·

At fair value through profit or loss: ETP Securities.

·

Amortised cost: other payables.

The classification is determined by both:

·

The Company’s business model for managing the financial asset and financial liability.

·

The contractual cash flow characteristics of the financial assets and financial liability.

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.

Fair value estimation

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date.

The price per ETP Securities is calculated daily to reflect the daily change in the relevant index of the ETP

Securities, and will take into account all applicable fees and adjustments. On the issue date of the class, the price per

ETP Securities willbeequalto itsissueprice. Onanyvaluationdate thereafter, thepriceper ETP iscalculated

according to a formula which reflects the price per ETP on the immediately preceding valuation date.

The TRSs arevaluedat fair valueutilisingpredefinedformulaandmarket pricesconsistent withtheETP 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

Financialassets andliabilitiesareoffset andthenet amount reportedintheStatement of FinancialPositionwhere

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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

22

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2.ACCOUNTING POLICIES (CONTINUED)

(f)Financial instruments (continued)

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial

asset expire, or whenit transfers thefinancialasset inatransactioninwhichsubstantially alltherisksandrewards 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.

Expected credit losses

Under IFRS9, the classification of financial assets is generally based on the business model in which a financial

asset is managed and it’s contractual cashflow characteristics. The impairment model applies to financial assets

measured at amortised cost and debt investments at FVOCI, but not to investments in equity instruments.

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 atamortised cost consist of cash and cash equivalents

and other receivables.

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(b) further discussion on credit risk.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

23

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2.ACCOUNTING POLICIES (CONTINUED)

(g)Cash 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.

(h)Other receivables and other payables

Other receivables and payables with no stated interest rate and receivable within one year are recorded at

transaction price.

(i)Ordinary 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.

(j)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 periods, if any.

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.

(k)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.

(l)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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

24

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2.ACCOUNTING POLICIES (CONTINUED)

(m)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.

3.NET LOSSES ON FINANCIAL ASSETS AT FAIR

VALUE THROUGH PROFIT OR LOSS

Financial year ended

30 June 2022

€

Financial year ended

30 June 2021

€

(84,198,104)

5,734,031

Unrealised (losses)/gains on financial assets at fair

value through profit or loss

Realised (losses) on financial assets at fair value

through profit or loss

(29,723,032)

(14,881,674)

(113,921,136)

(9,147,643)

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

Doutsche Boerse (the "Frankfurt Stock Exchange").

4.NET GAINS ON FINANCIAL LIABILITIES

AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial year ended

30 June 2022

€

Financial year ended

30 June 2021

€

84,198,104

(5,734,031)

Unrealised gains/(losses) on financial liabilities at fair

value through profit or loss

Realised gains on financial liabilities at fair value

through profit or loss

29,723,032

113,921,136

14,881,674

9,147,643

5.OTHER INCOME

Issuer profit

Management fee income

Other income

Financial year ended

30 June 2022

€

1,000

1,965,000

533,905

2,499,905

Financial year ended

30 June 2021

€

1,000

477,901

461,218

940,119

6.ADMINISTRATION EXPENSES

Corporate service fees

Audit and tax fees

Arranger fees

Other expenses

Financial year ended

30 June 2022

€

(12,131)

(73,258)

(1,965,000)

(448,516)

(2,498,905)

Financial year ended

30 June 2021

€

(12,179)

(72,344)

(477,901)

(376,695)

(939,119)

Auditors remuneration for the financial year is as

follows:

Audit fees

Tax compliance

Financial year ended

30 June 2022

€

(64,884)

(8,374)

(73,258)

Financial year ended

30 June 2021

€

(68,346)

(3,998)

(72,344)

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

Services Limited allocated approximately EUR 1,000 (2021: EUR 1,000) from the corporate service fee received as

consideration for the making available of individuals to act as directors of the Company.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

25

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

7.CORPORATION TAX

Corporation tax based on profit for the financial year

Financial year ended

30 June 2022

€

250

Financial year ended

30 June 2021

€

250

Profit on ordinary activities before taxation

1,000

(125)

Profit on ordinary activities multiplied by the standard

rate of 12.5%

Effect of higher tax rate (25%) applicable under

Section 110 TCA, 1997

Current tax charge for the financial year

(125)

(250)

(125)

(250)

Beginning corporation tax payable

Additional corporation tax charged

Corporation tax paid

Ending corporation tax payable

As at

30 June 2022

€

-

250

(250)

-

As at

30 June 2021

€

250

(500)

-

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 (2021: nil).

8.FINANCIAL ASSETS AT FAIR VALUE

THROUGH PROFIT OR LOSS

As at

30 June 2022

As at

30 June 2021

Fair value of TRS

€

119,940,983

€

118,667,290

9.OTHER RECEIVABLES

Issuer profit receivable

Share capital receivable

Other receivables

As at

30 June 2022

€

3,000

18,750

227,705

249,455

As at

30 June 2021

€

2,000

18,750

190,218

210,968

Based on the review of the Directors, no impairment was recorded for the year (2021:Nil) as the expected losses

are considered to be immaterial.

10.CASH AND CASH EQUIVALENTS

As at

30 June 2022

As at

30 June 2021

Cash and cash equivalents

€

1,036,729

€

15,321

Based on the review of the Directors, no impairment is recorded (2021: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.

11.FINANCIAL LIABILITIES AT FAIR VALUE

THROUGH PROFIT OR LOSS

As at

30 June 2022

As at

30 June 2021

€

118,667,290

€

2,160,011

317,268,102

(202,073,273)

133,766,166

(8,111,244)

1 July 2021

Cash flows:

Proceeds

Repayment

Non-cash:

Fair value movement

Fair value of ETP Securities

(113,921,136)

119,940,983

(9,147,643)

118,667,290

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

26

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11.FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

As at 30 June 2022, 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 Doutsche Boerse (the "Frankfurt Stock

Exchange").

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

Security Name

ISIN

BBG

Ticker

main

listing

Fair value

Launch

date

GraniteShares 3x Leveraged Alphabet ETP

GraniteShares -3x Short Alphabet ETP

GraniteShares 3x Leveraged Amazon ETP

GraniteShares -3x Short Amazon ETP

GraniteShares 3x Leveraged Apple ETP

GraniteShares -3x Short Apple ETP

GraniteShares 3x Leveraged Facebook ETP

GraniteShares -3x Short Facebook ETP

GraniteShares 3x Leveraged Microsoft ETP

GraniteShares -3x Short Microsoft ETP

GraniteShares 3x Leveraged Netflix ETP

GraniteShares -3x Short Netflix ETP

GraniteShares 3x Leveraged NVDIA ETP

GraniteShares -3x Short NVDIA ETP

GraniteShares 3x Leveraged Tesla ETP

GraniteShares -3x Short Tesla ETP

GraniteShares 3x Leveraged UBER ETP

GraniteShares -3x Short UBER ETP

GraniteShares 3x Leveraged NIO ETP

GraniteShares -3x Short NIO ETP

GraniteShares 3x Leveraged FAANG ETP

GraniteShares -3x Short FAANG ETP

GraniteShares 1x Leveraged GAFAM ETP

GraniteShares 3x Leveraged GAFAM ETP

GraniteShares -1x Short GAFAM ETP

GraniteShares -3x Short GAFAM ETP

GraniteShares 1x Leveraged FATANG ETP

GraniteShares 3x Leveraged FATANG ETP

GraniteShares -1x Short FATANG ETP

GraniteShares -3x Short FATANG ETP

XS2193968307

XS2193968729

XS2193969537

XS2193969701

XS2193969883

XS2193970030

XS2193971350

XS2193971517

XS2193970204

XS2193970386

XS2193970543

XS2193970899

XS2193971947

XS2193972168

XS2193972598

XS2193972671

XS2193972838

XS2193973059

XS2193973133

XS2193973216

XS2305050804

XS2305051018

XS2305050630

XS2305051281

XS2305051521

XS2305051448

XS2305050713

XS2305051877

XS2305052172

XS2305051950

3LAL

3SAL

3LZN

3SZN

3LAP

3SAP

3LFB

3SFB

3LMS

3SMS

3LNF

3SNF

3LNV

3SNV

3LTS

3STS

3LUB

3SUB

3LNI

3SNI

3FNG

3SFG

GFAM

3GFM

SGFM

3SGF

FTNG

3FTG

SFTG

3SFT

29/06/2020

04/03/2021

€

2,345,292

1,209,284

2,434,646

1,807,927

1,015,447

1,568,470

1,919,711

1,746,007

1,134,749

1,314,031

750,360

3,001,828

2,082,391

2,058,130

22,685,496

16,717,071

694,886

4,289,622

7,619,450

1,991,091

195,575

191,819

131,439

755,372

499,840

521,006

235,310

266,562

539,365

381,924

82,104,101

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

27

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11.FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

The table below shows ETPs cross listed in Borsa Italiana and Euronext Paris.

Security Name

ISIN

BBG

Ticker

main

listing

Fair value

Launch

date

GraniteShares 3x Long Palantir Daily ETP Securities

GraniteShares 3x Short Palantir Daily ETP Securities

GraniteShares 3x Long AMD Daily ETP Securities

GraniteShares 3x Short AMD Daily ETP Securities

GraniteShares 3x Long Moderna Daily ETP Securities

GraniteShares 3x Short Moderna Daily ETP Securities

XS2377111906

XS2377112037

XS2377112110

XS2377112201

XS2377112466

XS2377112540

3LPA

3SPA

3LAM

3SAM

3LMO

3SMO

27/08/2021

€

321,575

230,770

99,487

432,799

921,722

244,724

2,251,077

The table below shows ETPs listed in London Stock Exchange.

Security Name

ISIN

BBG

Ticker

main

listing

Fair value

Launch

date

GraniteShares 3x Leveraged Vodafone ETP

GraniteShares -3x Short Vodafone ETP

GraniteShares 3x Leveraged Glencore ETP

GraniteShares -3x Short Glencore ETP

GraniteShares 3x Leveraged Lloyds TSB ETP

GraniteShares -3x Short Lloyds TSB ETP

GraniteShares 3x Leveraged BP ETP

GraniteShares -3x Short BP ETP

GraniteShares 3x Leveraged AstraZeneca ETP

GraniteShares -3x Short AstraZeneca ETP

GraniteShares 3x Leveraged Diagio ETP

GraniteShares -3x Short Diagio ETP

GraniteShares 3x Leveraged BAE ETP

GraniteShares -3x Short BAE ETP

GraniteShares 3x Leveraged RIO ETP

GraniteShares -3x Short RIO ETP

GraniteShares 3x Leveraged Barclays ETP

GraniteShares -3x Short Barclays ETP

GraniteShares 3x Leveraged Royal Dutch ETP

GraniteShares -3x Short Royal Dutch ETP

GraniteShares 3x Leveraged Rolls Royce ETP

GraniteShares -3x Short Rolls Royce ETP

XS2009195566

XS2009195640

XS2066789251

XS2066789335

XS2066792982

XS2066793014

XS2066792396

XS2066792636

XS2066793287

XS2066793444

XS2066793790

XS2066793873

XS2066799995

XS2066849337

XS2066849501

XS2066849766

XS2066849923

XS2066850004

XS2066850343

XS2066850699

XS2066850772

XS2305052255

3LVO

3SVO

3LGL

3SGL

3LLL

3SLL

3LBP

3SBP

3LAZ

3SAZ

3LDO

3SDO

3LBA

3SBA

3LRI

3SRI

3LBC

3SBC

3LRD

3SRD

3LRR

3SRR

13/09/2019

29/08/2019

04/11/2019

€

1,064,207

61,508

2,042,234

789,715

1,074,286

294,540

1,780,830

432,798

427,345

174,554

336,734

226,578

1,189,374

550,042

1,362,149

746,166

1,885,403

831,499

2,229,539

329,643

9,707,458

468,746

28,005,348

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

28

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11.FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

The table below shows ETPs listed in Euronext Paris.

Security Name

ISIN

BBG

Ticker

main

listing

Fair value

Launch

date

27/08/2021

GraniteShares 3x Long Airbus Daily ETP Securities

GraniteShares 3x Short Airbus Daily ETP Securities

GraniteShares 3x Long AXA Daily ETP Securities

GraniteShares 3x Short AXA Daily ETP Securities

GraniteShares 3x Long BNP Daily ETP Securities

GraniteShares 3x Short BNP Daily ETP Securities

GraniteShares 3x Long Danone Daily ETP Securities

GraniteShares 3x Short Danone Daily ETP Securities

GraniteShares 3x Long L’Oreal Daily ETP Securities

GraniteShares 3x Short L’Oreal Daily ETP Securities

GraniteShares 3x Long LVMH Daily ETP Securities

GraniteShares 3x Short LVMH Daily ETP Securities

GraniteShares 3x Long Safran Daily ETP Securities

GraniteShares 3x Short Safran Daily ETP Securities

GraniteShares 3x Long Sanofi Daily ETP Securities

GraniteShares 3x Short Sanofi Daily ETP Securities

GraniteShares 3x Long Schneider Electric Daily ETP Securities

GraniteShares 3x Short Schneider Electric Daily ETP Securities

GraniteShares 3x Long STMicroelectronics Daily ETP Securities

XS2376933375

XS2376937442

XS2376944224

XS2376951781

XS2376951948

XS2376952243

XS2376974304

XS2376974486

XS2376974726

XS2376974999

XS2376975020

XS2376975376

XS2376975533

XS2376975616

XS2376975962

XS2376976341

XS2376976770

XS2376976853

XS2376978982

3LAR

3SAR

3LAX

3SAX

3LBN

3SBN

3LDA

3SDA

3LOR

3SOR

3LLV

3SLV

3LSA

3SSA

3LSN

3SSN

3LSE

3SSE

3LST

€

87,773

7,915

351,259

7,580

5,072

5,927

5,708

9,912

125,075

34,017

161,229

155,451

114,498

35,327

12,542

4,995

166,743

12,420

98,889

27/08/2021

GraniteShares 3x Short STMicroelectronics Daily ETP

Securities

XS2376979287

3SST

422,422

27/08/2021

GraniteShares 3x Long TotalEnergies Daily ETP Securities

GraniteShares 3x Short TotalEnergies Daily ETP Securities

GraniteShares 3x Long Volkswagen Daily ETP Securities

GraniteShares 3x Short Volkswagen Daily ETP Securities

XS2376979790

XS2376979873

XS2376990417

XS2376991142

3LTO

3STO

3LVW

3SVW

27/08/2021

21,931

101,686

244,448

922,743

3,115,562

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

29

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11.FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

The table below shows ETPs listed in Borsa Italia.

Security Name

ISIN

BBG

Ticker

main

listing

Fair value

Launch

date

GraniteShares 3x Long PayPal Daily ETP

GraniteShares 3x Short PayPal Daily ETP

GraniteShares 3x Long Square Daily ETP

GraniteShares 3x Short Square Daily ETP

GraniteShares 3x Long Coinbase Daily ETP

GraniteShares 3x Short Coinbase Daily ETP

GraniteShares 2x Long Zoom Daily ETP

GraniteShares 2x Short Zoom Daily ETP

GraniteShares 3x Long Spotify Daily ETP

GraniteShares 3x Short Spotify Daily ETP

GraniteShares 3x Long Alibaba Daily ETP

GraniteShares 3x Short Alibaba Daily ETP

GraniteShares 3x Long MicroStrategy Daily ETP

GraniteShares 3x Short MicroStrategy Daily ETP

GraniteShares 3x Long UniCredit Daily ETP

GraniteShares 3x Short UniCredit Daily ETP

GraniteShares 3x Long Eni Daily ETP

GraniteShares 3x Short Eni Daily ETP

GraniteShares 3x Long Intesa Sanpaolo Daily ETP

GraniteShares 3x Short Intesa Sanpaolo Daily ETP

GraniteShares 3x Long Enel Daily ETP

GraniteShares 3x Short Enel Daily ETP

XS2376992629

XS2376992389

XS2376992207

XS2376991738

XS2377112896

XS2377112623

XS2376991654

XS2435549188

XS2435549261

XS2435549774

XS2435549857

XS2435550194

XS2435550350

XS2435550780

XS2435550947

XS2435551168

XS2435551242

XS2435551325

XS2435551598

XS2435551671

XS2435552216

XS2435552729

3LPP

3SPP

3LSQ

3SSQ

3LCO

3SCO

2LZM

2SZM

3LPO

3SPO

3LAA

3SAA

3LMI

3SMI

3LCR

3SCR

3LEN

3SEN

3LSP

3SSP

3LNL

3SNL

12/01/2022

04/02/2022

€

163,967

764,425

7,835

104,342

67,723

16,375

151,942

9,964

58,424

21,266

82,695

1,753

6,325

124,004

399,516

13,731

285,551

11,030

289,011

435,119

195,622

440,730

3,651,350

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

Deutsche Boerse.

Security Name

ISIN

BBG

Ticker

main

listing

Fair value

Launch

date

GraniteShares 1x Leveraged FAANG ETP

XS2305050556

FANG

04/03/2021

GraniteShares -1x Short FAANG ETP

XS2305051109

SFNG

04/03/2021

€

223,036

590,509

813,545

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

30

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11.FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

As at 30 June 2021, the following are the ETP Securities in issue which are listed on the London Stock Exchange:

Security Name

ISIN

Fair value

€

Launch date

XS2193968307

XS2193968729

XS2193969537

XS2193969701

XS2193969883

XS2193970030

XS2193971350

XS2193971517

XS2193970204

XS2193970386

XS2193970543

XS2193970899

XS2193971947

XS2193972168

XS2193972598

XS2193972671

XS2193972838

XS2193973059

XS2193973133

XS2193973216

XS2009195566

XS2009195640

XS2066789251

XS2066789335

XS2066792982

XS2066793014

XS2066792396

XS2066792636

XS2066793287

XS2066793444

XS2066793790

XS2066793873

XS2066799995

XS2066849337

XS2066849501

XS2066849766

XS2066849923

XS2066850004

XS2066850343

XS2066850699

XS2066850772

XS2305052255

XS2305050556

XS2305050804

XS2305051109

XS2305051018

XS2305050630

XS2305051281

XS2305051521

XS2305051448

XS2305050713

XS2305051877

XS2305052172

XS2305051950

BBG

Ticker

main

listing

3LAL

3SAL

3LZN

3SZN

3LAP

3SAP

3LFB

3SFB

3LMS

3SMS

3LNF

3SNF

3LNV

3SNV

3LTS

3STS

3LUB

3SUB

3LNI

3SNI

3LVO

3SVO

3LGL

3SGL

3LLL

3SLL

3LBP

3SBP

3LAZ

3SAZ

3LDO

3SDO

3LBA

3SBA

3LRI

3SRI

3LBC

3SBC

3LRD

3SRD

3LRR

3SRR

FANG

3FNG

SFNG

3SFG

GFAM

3GFM

SGFM

3SGF

FTNG

3FTG

SFTG

3SFT

29/06/2020

04/03/2021

13/09/2019

29/08/2019

04/11/2019

04/03/2021

GraniteShares 3x Leveraged Alphabet ETP

GraniteShares -3x Short Alphabet ETP

GraniteShares 3x Leveraged Amazon ETP

GraniteShares -3x Short Amazon ETP

GraniteShares 3x Leveraged Apple ETP

GraniteShares -3x Short Apple ETP

GraniteShares 3x Leveraged Facebook ETP

GraniteShares -3x Short Facebook ETP

GraniteShares 3x Leveraged Microsoft ETP

GraniteShares -3x Short Microsoft ETP

GraniteShares 3x Leveraged Netflix ETP

GraniteShares -3x Short Netflix ETP

GraniteShares 3x Leveraged NVDIA ETP

GraniteShares -3x Short NVDIA ETP

GraniteShares 3x Leveraged Tesla ETP

GraniteShares -3x Short Tesla ETP

GraniteShares 3x Leveraged UBER ETP

GraniteShares -3x Short UBER ETP

GraniteShares 3x Leveraged NIO ETP

GraniteShares -3x Short NIO ETP

GraniteShares 3x Leveraged Vodafone ETP

GraniteShares -3x Short Vodafone ETP

GraniteShares 3x Leveraged Glencore ETP

GraniteShares -3x Short Glencore ETP

GraniteShares 3x Leveraged Lloyds TSB ETP

GraniteShares -3x Short Lloyds TSB ETP

GraniteShares 3x Leveraged BP ETP

GraniteShares -3x Short BP ETP

GraniteShares 3x Leveraged AstraZeneca ETP

GraniteShares -3x Short AstraZeneca ETP

GraniteShares 3x Leveraged Diagio ETP

GraniteShares -3x Short Diagio ETP

GraniteShares 3x Leveraged BAE ETP

GraniteShares -3x Short BAE ETP

GraniteShares 3x Leveraged RIO ETP

GraniteShares -3x Short RIO ETP

GraniteShares 3x Leveraged Barclays ETP

GraniteShares -3x Short Barclays ETP

GraniteShares 3x Leveraged Royal Dutch ETP

GraniteShares -3x Short Royal Dutch ETP

GraniteShares 3x Leveraged Rolls Royce ETP

GraniteShares -3x Short Rolls Royce ETP

GraniteShares 1x Leveraged FAANG ETP

GraniteShares 3x Leveraged FAANG ETP

GraniteShares -1x Short FAANG ETP

GraniteShares -3x Short FAANG ETP

GraniteShares 1x Leveraged GAFAM ETP

GraniteShares 3x Leveraged GAFAM ETP

GraniteShares -1x Short GAFAM ETP

GraniteShares -3x Short GAFAM ETP

GraniteShares 1x Leveraged FATANG ETP

GraniteShares 3x Leveraged FATANG ETP

GraniteShares -1x Short FATANG ETP

GraniteShares -3x Short FATANG ETP

Total amount

1,218,314

1,371,025

1,170,856

1,344,099

2,570,368

2,445,679

1,565,921

1,274,119

1,021,828

1,125,788

1,224,186

869,400

2,856,240

888,304

30,981,592

11,302,343

1,264,561

1,882,315

13,972,548

836,832

968,198

24,497

2,823,579

72,036

2,942,128

138,701

5,711,561

145,175

1,265,603

290,313

362,940

14,250

327,535

22,155

539,597

191,862

1,535,748

394,502

4,066,864

129,930

13,023,928

969,087

49,322

713,025

35,070

23,471

50,689

423,452

34,149

21,720

48,798

62,087

35,317

23,683

118,667,290

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

31

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

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.

(a)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. The impact of the COVID-19 pandemic and the impact of Russia-Ukraine war on the Company is

covered by the existing risk management framework.

12.OTHER PAYABLES

Corporate services fees payable

Audit and tax fees payable

Arranger fees payable

Other payables

Unearned income

As at

30 June 2022

€

5,153

58,478

239,836

8,284

947,183

1,258,934

As at

30 June 2021

€

18,088

70,374

103,043

8,284

-

199,789

13.SHARE CAPITAL

As at

30 June 2022

€

As at

30 June 2021

€

Authorised

100,000,000 ordinary shares of €1 each

100,000,000

Issued and called up

25,000 ordinary shares of €125,00025,000

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

32

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14.FINANCIAL RISK MANAGEMENT (CONTINUED)

(a)Market risk (continued)

(i)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.

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:

30/06/2022

USD1.0452

GBP0.8582

30/06/2021

1.1884

0.8581

The table below show the EUR equivalent of the nominal amounts of the foreign currency denominated financial

instruments held by the Company along with the details of how the currency exposure is eliminated:

TRS

Nominal

EUR equivalent

ETP issued

Nominal

EUR equivalent

Net exposure

Nominal

EUR equivalent

As at 30/06/2022

USD

GBP

EUR

86,749,763

28,005,348

5,185,872

119,940,983

(86,749,763) -

(28,005,348) -

(5,185,872)

(119,940,983)-

As at 30/06/2021

USD

GBP

82,707,101

35,960,189

118,667,290

(82,707,101) -

(35,960,189) -

(118,667,290) -

(ii)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).

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

33

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14.FINANCIAL RISK MANAGEMENT (CONTINUED)

(b)Market risk (continued)

(ii)Price risk (continued)

Financial instruments measured at fair value through profit or loss

As at 30 June 2022

Level 2

€

Total

€

Assets

Financial assets at fair value through profit or loss

119,940,983

Liabilities

Financial liabilities at fair value through profit or loss

(119,940,983)

As at 30 June 2021

Level 2

€

Total

€

Assets

Financial assets at fair value through profit or loss

118,667,290

Liabilities

Financial liabilities at fair value through profit or loss

(118,667,290)

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, (2021: 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

11,994,098 (2021: EUR 11,866,729). 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.

(iii)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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

34

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14.FINANCIAL RISK MANAGEMENT (CONTINUED)

(b)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.

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

As at

30 June 2022

€

30 June 2021

€

Financial assets at fair value through profit or loss

Other receivables

Cash and cash equivalents

119,940,983

249,455

1,036,729

121,227,167

118,667,290

210,968

15,321

118,893,579

The Swap counterparty is Natixis S.A.. which has A (2021: A) credit rating from Standard & Poor’s.

The Company has 3 bank accounts with The Bank of New York with a balance of EUR 36,025 (2021: EUR

5,152), balance of GBP 285,456 (2021:GBP 9,691) and balance USD 719,085 (2021:USD 476). The Bank of New

York has a AA- (2021: AA-) credit rating from Standard & Poor’s.

Other receivables were settled after the financial year end (2021: same).

(c)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:

As at 30 June 2022

Carrying

amount

€

Less than

one year

€

One to

five More than

years five years

€ €

Financial assets at fair value through profit or loss

Other receivables

Cash and cash equivalents

119,940,983

249,455

1,036,729

121,227,167

119,940,983

249,455

1,036,729

121,227,167

--

Financial liabilities at fair value through profit or loss

Corporation tax payable

Other payables

119,940,983

-

1,258,934

121,199,917

119,940,983

-

1,258,934

121,199,917

--

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

35

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14.FINANCIAL RISK MANAGEMENT (CONTINUED)

(c)Liquidity risk (continued)

As at 30 June 2021

Carrying

amount

Financial assets at fair value through profit or loss

Other receivables

Cash and cash equivalents

€

118,667,290

210,968

15,321

118,893,579

Less than

one year

€

118,667,290

210,968

15,321

118,893,579

One to

five More than

years five years

€ €

--

Financial liabilities at fair value through profit or loss

Corporation tax payable

Other payables

118,667,290

-

199,789

118,867,079

118,667,290

-

199,789

118,867,079

--

(d)Operational risk

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.

(e)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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

36

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14.FINANCIAL RISK MANAGEMENT (CONTINUED)

(e)Concentration risk (continued)

The following is the classification of ETPs per industry:

Industry

Aerospace and Defence

Automobiles

Banking

Beverages

Coal

Entertainment

Interactive Media & Services

Internet & Direct Marketing

Metal and Mining

Oil and Gas

Pharmaceuticals

Telecommunication services

Road & Rail

Semiconductors

Software

Technology

Technology Hardware, Storage

Healthcare

Industrials

Financials

Customer Staples

Customer Discretionary

Communication Technology

Information technology

As at

30 June 2022

Number of ETP issuances

4

6

4

2

-

2

10

2

-

40

-

4

10

2

8

2

106

As at

30 June 2021

Number of ETP issuances

4

2

4

2

4

2

12

2

-

54

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.

(f)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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

37

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14.FINANCIAL RISK MANAGEMENT (CONTINUED)

(f)Offsetting Financial assets and Financial liabilities (continued)

As at 30 June 2021

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

118,667,290

(118,667,290)

-

Gross amount of

recognised

financial liabilities

Financial

instruments

received

Net amount

€

Net amount of

recognised

financial

liabilities

€

Financial liabilities at fair

value through profit or loss118,667,290118,667,290(118,667,290)-

As at 30 June 2022

Net amount

Gross amount of

recognised

financial assets

€

Net amount of

recognised

financial assets

€

Financial

instruments

received

€

Financial assets at fair value

through profit or loss

119,940,983

(119,940,983)

-

Gross amount of

recognised

financial liabilities

Financial

instruments

received

Net amount

€

Net amount of

recognised

financial

liabilities

€

Financial liabilities at fair value

through profit or loss

119,940,983

(119,940,983)

-

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

38

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14.FINANCIAL RISK MANAGEMENT (CONTINUED)

(g)Reconciliation of Liabilities arising from financing activities

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

As at 1 July 2021

Long-term

borrowings

€

Short-term

borrowings

€

Lease

Liabilities

€

Total

€

Beginning balance 1 July 2021

118,667,290

-

118,667,290

(202,073,273)

317,268,102

-

(202,073,273)

317,268,102

Cash-flows:

- Repayment

- Proceeds

Non-cash:

-Fair value

-Reclassification

As at 30 June 2022

-

>

(113,921,136)

119,940,983

-

(113,921,136)

119,940,983

As at 1 July 2020

Beginning balance 1 July 2020

2,160,011

-

-2,160,011

(8,111,244)

133,766,166

- - (8,111,244)

- - 133,766,166

Cash-flows:

- Repayment

- Proceeds

Non-cash:

-Fair value

-Reclassification

As at 30 June 2021

-

(9,147,643)

118,667,290

---

-- (9,147,643)

-

- 118,667,290

15.CONTINGENT LIABILITIES AND COMMITMENTS

There were no contingent liabilities or commitments as of 30 June 2022 (2021: 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.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

39

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

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 1,965,000 (2021: EUR 477,901).

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

2022. 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 Romira Hoxha, employees of TMF

Management Ireland Limited were directors of the Company during the financial year.

The Company engages the Corporate 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 12,131 (2021: EUR 12,179) 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

1,000 (2021: 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 (2021: 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 SUBSEQUENT EVENTS

The current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the

economic risk of trading in these countries and other impacted countries within the region. Management is closely

monitoring the evolving situation. Management has not yet observed or determined the financial impact of these

events.

There were no other significant subsequent events which need to be adjusted or disclosed in the audited financial

statements.

18.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.

19.APPROVAL OF AUDITED FINANCIAL STATEMENTS

The audited financial statements were approved and authorised for issue by the Board on 26 October 2022.