Questions to Fred Woollard, page-2

Ms XYZ, one of our more diligent shareholders, has sent some more questions. Her questions and my answers follow:
Hi Fred,

Thank you for your reply to me yesterday.
I am somewhat perplexed as to how such a mistake could be a typing error.
I could understand for the figures to be a digit out, but looking at the keyboard, I cannot help but wonder how could such a mistake have happened?
And will the mistake be corrected? Does this need to be accounted for in $$ in the financial statements?

Which brings me to my next observation:
NSX announcement dated 24 November 2016
https://www.nsx.com.au/ftp/news/021732259.PDF

I notice this is the 2014 annual financial statement.
Where is the 2015 annual financial statement?
Shouldn't that be on the NSX?
I also note that between 1 June 2015 and 23 October 2015 it would appear that around 2,039,872 NSX PIN shares were traded:

http://www.nsxa.com.au/prices_trades.asp?tradingcode=PIN

I understand that this currently would represent 10,199 post consolidation shares?
Furthermore, I refer to these disclosures..

1 June 2015

https://www.nsxa.com.au/ftp/news/021730229.PDF

''...total shares 195,217,021" ''....% of ARL's total share capital ...19.909%...."

( = 976,085 post consolidation value??)

23 October 2015

http://n.b5z.net/i/u/10179838/f/Final_NOM_for_2015_ARL_AGM_SIGNED_WITH_PROXY_FORM.pdf
  
''...Total owned by STAR and Associates.... 257,084,891..... Number of post consolidated shares held 1,285,424.... 26.22%
  
I understand this to be a difference of 257,084,891 less 195,217,021 = 61,867,870 pre-consolidated shares or 309339 post consolidation shares.
Can you explain to me how, if just 2,039,872 NSX PIN shares were traded (10,199 post consolidated shares?) there is a 299,140 post consolidated shares difference?
Also, I refer to a recent announcement on the NSX
https://www.nsx.com.au/ftp/news/021732627.PDF
"...1,034,786 of escrowed unlisted shares..."
Could you explain to me why these shares are escrowed, and what differences and / or rights make them different to ordinary (my) shares?
Regards,
XYZ

Hi XYZ,
I agree with your comments re the typing error, but it has no impact on the $ amounts shown in the financial statements. I will try to ensure the mistake is not repeated in our annual report.
You are correct that our 2015 annual report should be on the NSX, but it is not there. I will arrange for this to be rectified, and attach a copy for your information. If there are any issues you notice in the 2015 annual report, I suggest you direct your enquiries to the former directors, who were responsible for the 2015 annual report.
You can read our old annual reports on our website: http://arlimited.com.au/financials
The answer to your question about the 309,339 shares is that these were the shares bought by Hamilton Securities as part of its takeover bid for ARL in 2015. I am a director of Hamilton Securities, and any shares owned by Hamilton needed to be included in my director and substantial shareholder filings.
The escrowed shares are identical to your shares (and everybody else’s shares) except that escrowed shares cannot be sold (except to an another associate of mine) for the first two years after ARL shares were admitted to trading on the NSX. For that reason, your ARL shares are arguably better than mine, in that you can sell your shares to whoever you please, whenever you please, but I cannot.  
The NSX imposed the escrow on ARL directors as a condition of listing. I believe this is a normal condition of NSX listing.
Regards,
Fred Woollard
Director
Asset Resolution Ltd