PACGOLD LIMITED — Annual Report 2020

Jul 5, 2021

Financial Statements

Pacgold Ltd (formerly Alice River Resources Pty Ltd) ABN 30 636 421 782 As at 30 June 2020

Prepared by GreenSlate Accounting & Advisory

Contents

• Income Statement
• Balance Sheet
• Notes to the Financial Statements
• Directors Declaration
• Compilation Report
• Tax Reconciliation
• Depreciation Schedule (Accounting)

Income Statement

Pacgold Ltd (formerly Alice River Resources Pty Ltd) For the year ended 30 June 2020

	NOTES	2020	2019
Gross Profit		-	-
Expenses
Depreciation		81	-
Amortisation		99	-
Total Expenses		180	-
Profit/(Loss) Before Tax		(180)	-
Net Profit After Tax		(180)	-

The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.

Balance Sheet

Pacgold Ltd (formerly Alice River Resources Pty Ltd) As at 30 June 2020

	NOTES	30 JUN 2020
Assets
Current Assets
Cash & Cash Equivalents	2	1
Total Current Assets		1
Non-Current Assets
Plant, Equipment & Other	3	7,435
Intangibles	4	396
Total Non-Current Assets		7,831
Total Assets		7,832
Liabilities
Non-Current Liabilities
Loans with Related Parties	5	8,011
Total Non-Current Liabilities		8,011
Total Liabilities		8,011
Net Assets		(179)
Equity
Retained Earnings	6	(180)
Share Capital	7	1
Total Equity		(179)

The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.

Notes to the Financial Statements

Pacgold Ltd (formerly Alice River Resources Pty Ltd) For the year ended 30 June 2020

1. Statement of Significant Accounting Policies

The directors have determined that the company is not a reporting entity and accordingly, this financial report is a special purpose report prepared for the sole purpose of distributing a financial report to members and must not be used for any other purpose. The directors have determined that the accounting policies adopted are appropriate to meet the needs of the members.

The financial report has been prepared on an accrual basis and under the historical cost convention, except for certain assets, which, as noted, have been written down to fair value as a result of impairment. Unless otherwise stated, the accounting policies adopted are consistent with those of the prior year.

The accounting policies that have been adopted in the preparation of the statements are as follows:

Income Tax

The income tax expense for the year comprises current income tax expense. The company does not apply deferred tax. Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at 30 June 2020. Current tax liabilities are therefore measured at the amounts expected to be paid to the relevant taxation authority.

Inventories

Inventories are carried at the lower of cost or net realisable value. Cost is based on the weighted average cost method and includes expenditure incurred in acquiring the inventories and bringing them to the existing condition and location.

Property, Plant & Equipment

Property, plant and equipment is initially recorded at the cost of acquisition or fair value less, if applicable, any accumulated depreciation and impairment losses. Plant and equipment that has been contributed at no cost, or for nominal cost, is valued and recognised at the fair value of the asset at the date it is acquired. The plant and equipment is reviewed annually by directors to ensure that the carrying amount is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the utilisation of the assets and the subsequent disposal. The expected net cash flows have been discounted to their present values in estimating recoverable amounts.

Freehold land and buildings are measured at their fair value, based on periodic, but at least triennial, valuations by independent external valuers, less subsequent depreciation for buildings.

Increases in the carrying amount of land and buildings arising on revaluation are credited in equity to a revaluation surplus. Decreases against previous increases of the same asset are charged against fair value reserves in equity. All other decreases are charged to profit or loss.

Any accumulated depreciation at the date of revaluation is offset against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Financial Assets

Investments held are originally recognised at cost, which includes transaction costs. They are subsequently measured at fair value which is equivalent to their market bid price at the end of the reporting period. Movements in fair value are recognised through an equity reserve.

Cash and Cash Equivalents

These notes should be read in conjunction with the attached compilation report.

Notes to the Financial Statements

Cash and cash equivalents include cash on hand, deposits held on call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.

Revenue Recognition

Revenue from the sale of goods is recognised upon the delivery of goods to customers. Revenue from the rendering of services is recognised upon the delivery of the services to customers. Revenue from commissions is recognised upon delivery of services to customers. Revenue from interest is recognised using the effective interest rate method. Revenue from dividends is recognised when the entity has a right to receive the dividend.

All revenue is stated net of the amount of goods and services tax (GST).

Goods and Services Tax

Transactions are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the balance sheet.

2020
1
1
1
2020
500
(8)
492
5,190
(53)
5,137
1,826
(20)
1,806
7,435

4. Intangibles

These notes should be read in conjunction with the attached compilation report.

Notes to the Financial Statements

Formation Costs	396
Total Intangibles	396
	2020
5. Loans with Related Parties
Unsecured
Michael Pitt	7,516
Patrick Walta	495
Total Unsecured	8,011
Total Loans with Related Parties	8,011
	2020
6. Retained Earnings
Current Year Earnings	(180)
Total Retained Earnings	(180)
	2020
7. Share Capital
1 Share at $1.00 per Share	1
Total Share Capital	1

These notes should be read in conjunction with the attached compilation report.

Directors Declaration

Pacgold Ltd (formerly Alice River Resources Pty Ltd) For the year ended 30 June 2020

The directors have determined that the company is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.

The directors of the company declare that:

• 1. The financial statements and notes, present fairly the company's financial position as at 30 June 2020 and its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements; and
• 1. In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

_________________________ 11-Feb-21

Patrick Walta

Director

Compilation Report

Pacgold Ltd (formerly Alice River Resources Pty Ltd) For the year ended 30 June 2020

We have compiled the accompanying special purpose financial statements of Pacgold Ltd (formerly Alice River Resources Pty Ltd), which comprise the balance sheet as at 30 June 2020, the income statement, the statement of cash flows, a summary of significant accounting policies and other explanatory notes. The specific purpose for which the special purpose financial statements have been prepared is set out in Note 1.

The Responsibility of the Directors

The directors of Pacgold Ltd (formerly Alice River Resources Pty Ltd) are solely responsible for the information contained in the special purpose financial statements, the reliability, accuracy and completeness of the information and for the determination that the basis of accounting used is appropriate to meet their needs and for the purpose that financial statements were prepared.

Our Responsibility

On the basis of information provided by the directors we have compiled the accompanying special purpose financial statements in accordance with the basis of accounting as described in Note 1 to the financial statements and APES 315 Compilation of Financial Information.

We have applied our expertise in accounting and financial reporting to compile these financial statements in accordance with the basis of accounting described in Note 1 to the financial statements. We have complied with the relevant ethical requirements of APES 110 Code of Ethics for Professional Accountants.

Assurance Disclaimer

Since a compilation engagement is not an assurance engagement, we are not required to verify the reliability, accuracy or completeness of the information provided to us by management to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on these financial statements.

The special purpose financial statements were compiled exclusively for the benefit of the directors who are responsible for the reliability, accuracy and completeness of the information used to compile them. We do not accept responsibility for the contents of the special purpose financial statements.

Justin Araco

Green Slate Accounting & Advisory

Dated: 02-Feb-21

Tax Reconciliation

Pacgold Ltd (formerly Alice River Resources Pty Ltd) For the year ended 30 June 2020

	2020
Tax Reconciliation
Accounting Profit for Period
Profit for period	(180)
Carried Forward Losses Applied	-
Total Accounting Profit for Period	(180)
Addbacks
Depreciation - Accounting	81
Amortisation - Accounting	99
Other Addbacks	-
Total Addbacks	180
Deductions
Depreciation - Tax	7,516
Amortisation - Tax (s40-880)	99
Other Deductions	-
Total Deductions	7,615
Taxable Profit	(7,615)
Gross Tax Payable	-
Net Tax Payable on Lodgement of Tax Return	-
	2020
1. Carried Forward Losses - Revenue
Year Ended 30 June 2020	7,615
Total Carried Forward Losses - Revenue	7,615

The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.

Depreciation Schedule (Accounting)

Pacgold Ltd (formerly Alice River Resources Pty Ltd) For the year ended 30 June 2020

NAME	PURCHASED	COST	OPENING VALUE	PURCHASES	DISPOSALS	DEPRECIATION	CLOSING VALUE
Application Expense
ApplicationExpenses	1 Jun 2020	1,826	-	1,826	-	20	1,806
Total Application Expense		1,826	-	1,826	-	20	1,806
	Conduct and Compensation Agreements
Conduct and
Compensation	17 May 2020	500	-	500	-	8	492
Agreement
Total Conduct and CompensationAgreements		500	-	500	-	8	492
Mining Lease
Mining Leases	3 Jun 2020	5,190	-	5,190	-	53	5,137
Total Mining Lease		5,190	-	5,190	-	53	5,137
Total		7,516	-	7,516	-	81	7,435