CBA CAPITAL AUSTRALIA LIMITED

Transcription

1 CBA CAPITAL AUSTRALIA LIMITED ABN Interim Financial Report For the half year ended 31 December 2014 GTR0036_Financial_Report_Dec_2014_FINAL.indd 1

2 Contents 1 Directors Report 2 Auditor s Independence Declaration 4 Statement of Comprehensive Income 5 Balance Sheet 6 Statement of Changes in Equity 7 Statement of Cash Flows 8 Notes to the Financial Statements 15 Directors Declaration 16 Independent auditor s review report to the members of CBA Capital Australia Limited CBA Capital Australia Limited ABN is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Ground Floor, Tower 1, 201 Sussex St, Sydney NSW 2000, Australia. A description of the principal activities is included in the Directors Report on page 1. Share Registrar Computershare Investor Services Limited Private Bag Victoria Street West Auckland 1142 Level Hurstmere Road Takapuna, Auckland 0622 Managing Your Shareholding Online Visit and log in. Select My profile and click on the update button on the communication preferences tile. You will need your CSN or Holder Number and FIN to access Investor Centre and register your account. In future you will access this service with your own User ID and Password. GTR0036_Financial_Report_Dec_2014_FINAL.indd 2

3 Directors Report The Directors of CBA Capital Australia Limited (the Company ) submit the following report for the half year ended 31 December Directors The names of the Directors of the Company in office during the half year ended 31 December 2014 and until the date of this report, unless otherwise stated, were: C Pitt Appointed 17 October 2014 G B Raward T L Smith C B Millett Resigned 17 October 2014 Review and results of operations The Company recorded a net profit after tax for the half year ended 31 December 2014 of 1,321 (31 December 2013: loss 259). The profit mainly represents bank interest income less bank fees expense. Principal activities The Company was incorporated on 23 October 2003 to act as a funding vehicle for Commonwealth Bank of Australia (the Bank ). On 18 May 2005, the Company issued 350 million Redeemable Preference Shares ( RPS ) into the New Zealand retail and wholesale market. The proceeds of issue of the RPS were invested by the Company in redeemable preference shares issued by CBA Capital Australia (No 2) Pty Limited. The terms of those redeemable preference shares are identical to the terms of the RPS. Dividends The Directors of the Company have not recommended that a dividend be paid or determined on ordinary shares for the half year ended 31 December 2014 (31 December 2013: nil). However, dividends of 5,531,400 (31 December 2013: 4,321,800) were paid on the RPS, during the half year ended 31 December Dividends paid on the RPS during the half year were: Date Paid Record Date Cents per RPS, fully imputed () 15 Jul Jul Oct Sep On 4 December 2014, the Directors resolved to pay a fully imputed dividend of 2,765,700 (4 December 2013: 2,160,900) in respect of the RPS ( cents per share) (4 December 2013: cents per share) to be payable on 15 January Payment of the dividend was subject to certain conditions as set out in the RPS prospectus being met, prior to payment. All necessary conditions were met and payment was made on 15 January Auditor s independence declaration The auditor, PricewaterhouseCoopers, has provided us with a declaration of their independence as required under Section 307C of the Corporations Act 2001, which is set out on page 2. Signed in accordance with a resolution of the Directors. Graham Raward Director Sydney, NSW 18 February 2015 Claudia Pitt Director Sydney, NSW 18 February GTR0036_Financial_Report_Dec_2014_FINAL.indd 1

4 Auditor s Independence Declaration As lead auditor for the review of CBA Capital Australia Limited for the half-year ended 31 December 2014, I declare that to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and b) no contraventions of any applicable code of professional conduct in relation to the review. Marcus Laithwaite Partner Sydney PricewaterhouseCoopers 18 February 2015 PricewaterhouseCoopers, ABN Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T , F , Liability limited by a scheme approved under Professional Standards Legislation. 2 GTR0036_Financial_Report_Dec_2014_FINAL.indd 2

5 CBA Capital Australia Limited Financial Statements Contents 4 Statement of Comprehensive Income 5 Balance Sheet 6 Statement of Changes in Equity 7 Statement of Cash Flows GTR0036_Financial_Report_Dec_2014_FINAL.indd 3

6 Statement of Comprehensive Income For the half year ended 31 December 2014 Note 31 December December 2013 Revenue from continuing operations 3 5,533,920 4,323,491 Finance costs 3 (5,531,400) (4,321,800) Expenses 3 (802) (871) Profit before income tax 1, Income tax expense (397) (1,079) Net profit/(loss) for the half year after tax 1,321 (259) Other comprehensive income Items that may be reclassified to profit or loss Movement on foreign currency translation reserve 3,328 9,582 Income tax relating to these items - - Items that will not be reclassified to profit or loss - - Other comprehensive income for the half year, net of tax 3,328 9,582 Total comprehensive income for the half year, attributable to the owners of CBA Capital Australia Limited 4,649 9,323 The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes. 4 GTR0036_Financial_Report_Dec_2014_FINAL.indd 4

7 Balance Sheet As at 31 December December June 2013 ASSETS Current assets Cash and cash equivalents 114, ,670 Loans, advances and other receivables 352,335, ,335,535 Total current assets 352,449, ,448,205 Total assets 352,449, ,448,205 LIABILITIES Current liabilities Interest bearing liabilities 350,000, ,000,000 Payables 2,335,480 2,335,480 Intragroup income tax liability 2,342 2,180 Total current liabilities 352,337, ,337,660 Total liabilities 352,337, ,337,660 Net assets 111, ,545 Equity Share capital 2 2 Retained earnings 115, ,049 Foreign currency translation reserve (3,834) (506) Total equity attributable to the owners of CBA Capital Australia Limited 111, ,545 The above Balance Sheet should be read in conjunction with the accompanying notes. 5 GTR0036_Financial_Report_Dec_2014_FINAL.indd 5

8 Statement of Changes in Equity For the half year ended 31 December 2014 Share Capital Foreign Currency Translation Reserve Retained Earnings Total Equity As at 1 July , , ,188 Loss for the half year - - (259) (259) Other comprehensive income for the half year - (9,582) 9,582 - As at 31 December , ,929 As at 1 July (506) 111, ,545 Profit for the half year - - 1,321 1,321 Other comprehensive income for the half year - (3,328) 3,328 - As at 31 December (3,834) 115, ,866 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes. 6 GTR0036_Financial_Report_Dec_2014_FINAL.indd 6

9 Statement of Cash Flows For the half year ended 31 December December December 2013 Note Cash flows from operating activities Bank interest received 2,520 1,692 Interest received from CBA Capital Australia (No 2) Pty Limited 5,531,400 4,321,800 Interest paid to New Zealand investors (5,531,400) (4,321,800) Withholding tax paid (235) (120) Settlement of intragroup receivables (17) (50) Bank fees paid (802) (871) Net cash inflows from operating activities 1, Cash flows from investing activities - - Net cash flows from investing activities - - Cash flows from financing activities - - Net cash flows from financing activities - - Net increase in cash and cash equivalents held 1, Cash and cash equivalents at the beginning of the half year 112, ,207 Cash and cash equivalents at the end of the half year 114, ,858 The above Statement of Cash Flows should be read in conjunction with the accompanying notes. 7 GTR0036_Financial_Report_Dec_2014_FINAL.indd 7

10 CBA Capital Australia Limited Notes to the Financial Statements For the half year ended 31 December 2014 Contents 9 Note 1 Summary of significant accounting policies 10 Note 2 Segment information 11 Note 3 Revenue and expenses 11 Note 4 Double taxation treaty 12 Note 5 Fair value measurement of financial instruments 14 Note 6 Contingent assets, liabilities and commitments 14 Note 7 Events after the end of the reporting period GTR0036_Financial_Report_Dec_2014_FINAL.indd 8

11 Notes to the Financial Statements For the half year ended 31 December 2014 Note 1. Summary of significant accounting policies General information This Interim Financial Report of CBA Capital Australia Limited (the Company ) for the half year ended 31 December 2014, was approved and authorised for issue by the Board of Directors on 18 February The Directors have the power to amend and re-issue the Interim Financial Report which includes the Financial Statements for the Company for the half year ended 31 December The Company is incorporated and domiciled in Australia. It is a company limited by shares. The address of its registered office is Ground Floor, Tower 1, 201 Sussex St, Sydney NSW 2000, Australia. The ultimate parent entity is Commonwealth Bank of Australia (the Bank ) ACN There have been no significant changes in the nature of the principal activities of the Company during the half year. The functional currency of the Company has been determined to be Australian dollars ( AUD ) as this currency best reflects the economic substance of the underlying events and circumstances relevant to the Company. The presentational currency of this Interim Financial Report is New Zealand dollars ( ) and it is prepared to satisfy the needs of the New Zealand investors. The principal accounting policies adopted in the presentation of these Financial Statements are set out below. These policies have been consistently applied to all periods presented, unless otherwise stated. These Interim Financial Statements are the individual financial statements of the Company as an individual entity. (a) Basis of accounting The Financial Statements for the half year ended 31 December 2014 have been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting which ensures compliance with IAS 34 Interim Financial Reporting. The Company is a for-profit entity for the purposes of preparing the Financial Statements. This Interim Financial Report does not include all notes of the type normally included within an Annual Financial Report and therefore cannot be expected to provide as full an understanding of the financial position and financial performance of the Company as that given by the Annual Financial Report. As a result, this Interim Financial Report should be read in conjunction with the 30 June 2014 Annual Financial Report of the Company and any public announcements made in the period by the Company in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the NZX Listing Rules. For the purpose of this Interim Financial Report, the half year has been treated as a discrete reporting period. 9 GTR0036_Financial_Report_Dec_2014_FINAL.indd 9

12 The accounting policies and methods of computation adopted in the preparation of the Interim Financial Report are consistent with those adopted and disclosed in the Annual Financial Report for the year ended 30 June New and amended standards adopted During the current reporting period, the Company adopted a number of new accounting standards. There was no impact on the Company s current or retrospective financial results, or accounting policies, as a result of adopting these standards. Disclosures in the 30 June 2015 Annual Financial Report, as a consequence of these amendments, will be impacted. Impact of standards issued but not yet applied by the Company Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2014 interim reporting periods and have not been early adopted by the Company. They are not expected to have any significant impact on the Company. Note 2. Segment information The Company operates predominantly in one geographical area, Australia, and operates predominantly in one business segment. The Company s primary activity is to invest in redeemable preference shares issued by CBA Capital Australia (No 2) Pty Limited. 10 GTR0036_Financial_Report_Dec_2014_FINAL.indd 10

13 Notes to the Financial Statements For the half year ended 31 December 2014 Note 3. Revenue and Expenses 31 December December 2013 Revenue from continuing operations Interest income from ultimate parent entity 2,520 1,691 Interest from related parties (CBA Capital Australia (No 2) Pty Limited) 5,531,400 4,321,800 Total revenue from continuing operations 5,533,920 4,323,491 Finance costs Interest expense to New Zealand investors (5,531,400) (4,321,800) Total finance costs (5,531,400) (4,321,800) Expenses Bank fees (802) (871) Total expenses (802) (871) Note 4. Double taxation treaty A double taxation treaty exists between Australia and New Zealand. As a result, the only taxation liability due by the Company arises in Australia. 11 GTR0036_Financial_Report_Dec_2014_FINAL.indd 11

14 Note 5. Fair value measurement of financial instruments The estimated fair value of the Company s financial instruments not measured at fair value as at 31 December 2014 are presented below. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm s length transaction. The Company uses various methods in estimating fair value. The methods comprise: Level 1 Level 2 Level 3 the fair value is calculated using quoted prices unadjusted in active markets. the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). the fair value is estimated using inputs for the asset or liability that are not based on observable market data. Financial assets held by the Company are cash and cash equivalents, and trade and other receivables which are fair valued at levels 1 and 2 respectively. The fair value of the redeemable preference shares issued by CBA Capital Australia (No 2) Pty Limited is the same as the market price of the RPS issued by the Company. The carrying values of cash and other receivables approximate their fair values as they are short term in nature or are receivable on demand. Financial liabilities held by the Company are trade and other payables which are fair valued at level 1 and 2 respectively. The driver of the fair value of the RPS issued by the Company is the market price of the financial instrument at balance date. The carrying value of the payables approximates the net fair value as they are short term in nature. Other provisions including income tax liability are not considered financial instruments. It is the Company s intention to hold its financial instruments to maturity on 15 April 2015 and therefore it is not probable that the fair values shown would be realised. The RPS are to be redeemed or repurchased on the maturity date, 15 April 2015, from funds received from the repayment of redeemable preference shares held in CBA Capital Australia (No 2) Pty Limited. 12 GTR0036_Financial_Report_Dec_2014_FINAL.indd 12

15 Notes to the Financial Statements For the half year ended 31 December 2014 Carrying Total 31 December 2014 Level 1 Fair Value Level 2 Level 3 Total Financial assets Cash and cash equivalents 114, , ,136 RPS issued by CBA Capital Australia (No 2) Pty Limited 350,000, ,500, ,500,000 Interest receivable from related party (CBA Capital Australia (No 2) Pty Limited) 2,335,480-2,335,480-2,335,480 Receivable from ultimate parent entity Total financial assets 352,449, ,614,136 2,335, ,949,688 Financial liabilities Payables 2,335,480-2,335,480-2,335,480 Interest bearing liabilities 350,000, ,500, ,500,000 Total financial liabilities 352,335, ,500,000 2,335, ,835, June 2014 Carrying Fair Value Total Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents 112, , ,670 RPS issued by CBA Capital Australia (No 2) Pty Limited 350,000, ,500, ,500,000 Interest receivable from related party (CBA Capital Australia (No 2) Pty Limited) 2,335,480-2,335,480-2,335,480 Receivable from ultimate parent entity Total financial assets 352,448, ,612,670 2,335, ,948,205 Financial liabilities Payables 2,335,480-2,335,480-2,335,480 Interest bearing liabilities 350,000, ,500, ,500,000 Total financial liabilities 352,335, ,500,000 2,335, ,835, GTR0036_Financial_Report_Dec_2014_FINAL.indd 13

16 Note 6. Contingent assets, liabilities and commitments There are no outstanding contingent assets, liabilities or commitments as at 31 December 2014 (30 June 2014: nil). Note 7. Events after the end of the reporting period On 4 December 2014, the Directors resolved to pay a fully imputed dividend of 2,765,700 (4 December 2013: 2,160,900) in respect of the RPS ( cents per share) (4 December 2013: cents per share) to be payable on 15 January Payment of the dividend was subject to certain conditions as set out in the RPS prospectus being met prior to payment. All necessary conditions were met and payment was made on 15 January The Directors are not aware of any other matter or circumstance not otherwise dealt with in this report that has occurred since the end of the reporting period that has significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent financial periods. 14 GTR0036_Financial_Report_Dec_2014_FINAL.indd 14

17 Directors Declaration 31 December 2014 In accordance with a resolution of the Directors of CBA Capital Australia Limited (the Company ), we declare that in the opinion of the Directors: (a) the half year financial statements and notes thereto are in accordance with the Corporations Act 2001 and: (i) give a true and fair view of the financial position of the Company as at 31 December 2014 and of its performance for the half year ended on that date; and (ii) comply with the Accounting Standards and any further requirements in the Corporations Regulations 2001; and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the Directors. Graham Raward Director Sydney, NSW 18 February 2015 Claudia Pitt Director Sydney, NSW 18 February GTR0036_Financial_Report_Dec_2014_FINAL.indd 15

18 Independent auditor s review report to the members of CBA Capital Australia Limited Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of CBA Capital Australia Limited (the Company), which comprises the balance sheet as at 31 December 2014, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors declaration. Directors responsibility for the half-year financial report The directors of the company are responsible for the preparation of the halfyear financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error. Auditor s responsibility Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Australian Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the entity s financial position as at 31 December 2014 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations As the auditor of CBA Capital Australia Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report. A review of a half-year financial report consists of making enquiries, primarily of 16 GTR0036_Financial_Report_Dec_2014_FINAL.indd 16

19 persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Independence In conducting our review, we have complied with the independence requirements of the Corporations Act Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of CBA Capital Australia Limited is not in accordance with the Corporations Act 2001 including: (a) giving a true and fair view of the company s financial position as at 31 December 2014 and of its performance for the half-year ended on that date; (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations PricewaterhouseCoopers Marcus Laithwaite Sydney Partner 18 February 2015 PricewaterhouseCoopers, ABN Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T , F , Liability limited by a scheme approved under Professional Standards Legislation. 17 GTR0036_Financial_Report_Dec_2014_FINAL.indd 17

20 CBA BC1 GTR0036_Financial_Report_Dec_2014_FINAL.indd 1