Example Accounts Only

Transcription

1 CaseWare Australia & New Zealand Large General Purpose RDR Company Financial Statements Disclaimer: These financials include illustrative disclosures for a large proprietary company who is preparing general purpose reduced disclosure financial statements, and is not intended to be and is not comprehensive in relation to its subject matter. CaseWare Australia & New Zealand Large General Purpose RDR Company prepared RDR financial statements in the prior year, and therefore does not include initial adoption disclosure. This document is not a substitute for reading technical pronouncements relating to the preparation of financial statements. To the extent permitted by law, CaseWare Australia and New Zealand, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences arising from the reliance on the information contained in this document or for any decisions based on it.

2 Contents Financial Statements Directors' Report 1 Auditors Independence Declaration under Section 307C of the Corporations Act Statement of Profit or Loss and Other Comprehensive Income 4 Statement of Financial Position 5 Statement of Changes in Equity 6 Statement of Cash Flows 7 8 Directors' Declaration 24 Independent Audit Report 25 Page

3 Directors' Report 30 June The directors present their report on CaseWare Australia & New Zealand Large General Purpose RDR Company for the financial year ended 30 June. Information on directors The names of each person who has been a director during the year and to the date of this report are: Andrew Ball Jeremy Smith Anthony Locke Sarah McBride Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal activities The principal activity of CaseWare Australia & New Zealand Large General Purpose RDR Company during the financial year was the manufacture and retail of safety clothes and equipment in Australia. No significant changes in the nature of the Company's activity occurred during the financial year. Operating results The profit of the Company after providing for income tax amounted to 2,420,496 (: 2,297,899). This was as a result of increased sales during the year arising from the introduction of new product lines and improved marketing campaigns. The cash balance of the company also increased during the year which improves the liquidity and an increase in the net assets to 27.4m put the company in a strong financial position. Dividends paid or recommended No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made. Significant changes in state of affairs There have been no significant changes in the state of affairs of the Company during the year. Events after the reporting date No matters or circumstances have arisen since the end of the financial year which 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 future financial years. Environmental issues The Company's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a state or territory of Australia. Indemnification and insurance of officers and auditors No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of CaseWare Australia & New Zealand Large General Purpose RDR Company. 1

4 Directors' Report 30 June Proceedings on behalf of company Auditor's independence declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 June has been received and can be found on page 3 of the financial report. Signed in accordance with a resolution of the Board of Directors: Director:... Andrew Ball Director:... Jeremy Smith Dated 30 September 2

5 Auditors Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of CaseWare Australia & New Zealand Large General Purpose RDR Company I declare that, to the best of my knowledge and belief, during the year ended 30 June, there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit. ABC Auditors A N Auditor 30 September Melbourne 3

6 Statement of Profit or Loss and Other Comprehensive Income Sales revenue 3 63,489,011 61,811,141 Cost of sales Note (28,083,270) (28,108,215) Gross profit 35,405,741 33,702,926 Other income 3 2,691,313 2,859,676 Distribution costs Marketing expenses Occupancy costs (969,050) (1,131,998) (1,433,103) (1,511,700) (3,644,894) (3,511,448) Administrative expenses (27,866,368) (27,006,672) Finance costs (426,402) (218,145) Profit before income tax 3,757,237 3,182,639 Income tax expense 5 (1,336,741) (884,740) Profit for the year 2,420,496 2,297,899 Items that will be reclassified to profit or loss when specific conditions are met Net fair value movements for available-for-sale financial assets (31,582) 75,059 Other comprehensive income for the year, net of tax (31,582) 75,059 Total comprehensive income for the year 2,388,914 2,372,958 The accompanying notes form part of these financial statements. 4

7 Statement of Financial Position 30 June Note ASSETS CURRENT ASSETS Cash and cash equivalents 6 898,607 71,852 Trade and other receivables 7 4,398,253 5,819,281 Inventories 8 18,829,121 17,124,965 Other assets 12 1,466,452 1,278,930 TOTAL CURRENT ASSETS 25,592,433 24,295,028 NON-CURRENT ASSETS Financial assets 9 499, ,131 Property, plant and equipment 10 4,924,982 5,736,395 Deferred tax assets , ,902 Intangible assets 11 1,793,285 2,151,518 TOTAL NON-CURRENT ASSETS TOTAL ASSETS 7,840,998 8,859,946 33,433,431 33,154,974 LIABILITIES CURRENT LIABILITIES Trade and other payables 13 1,732,349 3,712,433 Borrowings 14 1,458,706 2,151,102 Current tax liabilities , ,742 Employee benefits 16 1,770,775 1,760,104 Other financial liabilities 15 45,490 9,637 TOTAL CURRENT LIABILITIES 5,837,561 7,948,018 NON-CURRENT LIABILITIES Employee benefits , ,510 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 233, ,510 6,071,071 8,181,528 27,362,360 24,973,446 EQUITY Issued capital 17 3,259,673 3,259,673 Reserves 190, ,678 Retained earnings 23,912,591 21,492,095 TOTAL EQUITY 27,362,360 24,973,446 The accompanying notes form part of these financial statements. 5

8 Statement of Changes in Equity Ordinary Shares Retained Earnings Financial Assets Reserve Balance at 1 July 3,259,673 21,492, ,678 24,973,446 Profit or loss attributable to members of the parent entity - 2,420,496-2,420,496 Fair value adjustment on Available-for-sale investments - - (31,582) (31,582) Balance at 30 June 3,259,673 23,912, ,096 27,362,360 Total Ordinary Shares Retained Earnings Financial Assets Reserve Balance at 1 July ,259,673 19,194, ,619 22,600,488 Profit or loss attributable to members of the parent entity - 2,297,899-2,297,899 Fair value adjustments on Available-for-sale investments ,059 75,059 Total Balance at 30 June 3,259,673 21,492, ,678 24,973,446 The accompanying notes form part of these financial statements. 6

9 Statement of Cash Flows Note CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 67,203,841 63,266,639 Payments to suppliers and employees (64,209,173) (60,982,257) Interest received 27,711 72,661 Interest paid Income taxes paid Net cash provided by (used in) operating activities (426,402) (218,145) (821,242) (1,005,533) 1,774,735 1,133,365 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment 187,855 51,226 Payment for intangible asset (2,939) - Purchase of property, plant and equipment (440,500) (144,998) Net cash used by investing activities (255,584) (93,772) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of borrowings (692,396) (1,102,165) Net cash used by financing activities (692,396) (1,102,165) Net increase (decrease) in cash and cash equivalents held 826,755 (62,572) Cash and cash equivalents at beginning of year 71, ,424 Cash and cash equivalents at end of financial year 6 898,607 71,852 The accompanying notes form part of these financial statements. 7

10 The financial report covers CaseWare Australia & New Zealand Large General Purpose RDR Company as an individual entity. CaseWare Australia & New Zealand Large General Purpose RDR Company is a for profit Company limited by shares, incorporated and domiciled in Australia. The functional and presentation currency of CaseWare Australia & New Zealand Large General Purpose RDR Company is Australian dollars. 1 Summary of Significant Accounting Policies (a) Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Comparative Amounts Comparatives are consistent with prior years, unless otherwise stated. (b) Income Tax The tax expense recognised in the statement of profit or loss and other comprehensive income relates to current income tax expense plus deferred tax expense (being the movement in deferred tax assets and liabilities and unused tax losses during the year). Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for the year and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts of tax bases of assets and liabilities to the carrying amounts in the financial statements. Deferred tax is not provided for the following: The initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss). Taxable temporary differences arising on the initial recognition of goodwill. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax consequences relating to a non-monetary asset carried at fair value are determined using the assumption that the carrying amount of the asset will be recovered through sale. 8

11 1 Summary of Significant Accounting Policies continued (b) Income Tax continued Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and losses can be utilised. Current tax assets and liabilities are offset where there is a legally enforceable right to set off the recognised amounts and there is an intention either to settle on a net basis or to realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset where there is a legal right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. Current and deferred tax is recognised as income or an expense and included in profit or loss for the period except where the tax arises from a transaction which is recognised in other comprehensive income or equity, in which case the tax is recognised in other comprehensive income or equity respectively. (c) Leases Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term. (d) Revenue and other income Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and specific criteria relating to the type of revenue as noted below, has been satisfied. Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates. All revenue is stated net of the amount of goods and services tax (GST). Sale of goods Revenue is recognised on transfer of goods to the customer as this is deemed to be the point in time when risks and rewards are transferred and there is no longer any ownership or effective control over the goods. Interest revenue Interest is recognised using the effective interest method. (e) Borrowing costs All borrowing costs are recognised as an expense in the period in which they are incurred. 9

12 1 Summary of Significant Accounting Policies continued (f) Goods and Services Tax (GST) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payable are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position. Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. (g) Inventories Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined using the first-in-first-out basis and are net of any rebates and discounts received. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale. Net realisable value is estimated using the most reliable evidence available at the reporting date and inventory is written down through an obsolescence provision if necessary. (h) Property, Plant and Equipment Classes of property, plant and equipment are measured using cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable. Depreciation The depreciable amount of all property, plant and equipment, is depreciated on a straight-line method from the date that management determine that the asset is available for use. Leasehold improvements are depreciated over the shorter of the term of the lease and the assets useful life. The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Useful life Buildings Plant and Equipment Furniture, Fixtures and Fittings Motor Vehicles Computer Equipment Leasehold improvements 6-25 years 7-11 years 4-10 years 5-12 years 5-7 years 8-12 years At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate. 10

13 1 Summary of Significant Accounting Policies continued (i) Financial instruments Financial instruments are recognised initially using trade date accounting, i.e. on the date that Company becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred). Financial Assets Financial assets are divided into the following categories which are described in detail below: loans and receivables; and available-for-sale financial assets. Financial assets are assigned to the different categories on initial recognition, depending on the characteristics of the instrument and its purpose. A financial instrument s category is relevant to the way it is measured and whether any resulting income and expenses are recognised in profit or loss or in other comprehensive income. All income and expenses relating to financial assets are recognised in the statement of profit or loss and other comprehensive income in the finance income or finance costs line item respectively. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers but also incorporate other types of contractual monetary assets. After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Any change in their value is recognised in profit or loss. The Company s trade and most other receivables fall into this category of financial instruments. Discounting is omitted where the effect of discounting is considered immaterial. Significant receivables are considered for impairment on an individual asset basis when they are past due at the reporting date or when objective evidence is received that a specific counterparty will default. The amount of the impairment is the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, impairment provisions are recorded in a separate allowance account with the loss being recognised in profit or loss. When confirmation has been received that the amount is not collectable, the gross carrying value of the asset is written off against the associated impairment provision. Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss. In some circumstances, the Company renegotiates repayment terms with customers which may lead to changes in the timing of the payments, the Company does not necessarily consider the balance to be impaired, however assessment is made on a case-by-case basis. 11

14 1 Summary of Significant Accounting Policies continued (i) Financial instruments continued Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that do not qualify for inclusion in any of the other categories of financial assets. The Company's available-for-sale financial assets include listed securities. Available-for-sale financial assets are measured at fair value, with subsequent changes in value recognised in other comprehensive income. Gains and losses arising from financial instruments classified as available-for-sale are only recognised in profit or loss when they are sold or when the investment is impaired. In the case of impairment or sale, any gain or loss previously recognised in equity is transferred to the profit or loss. Losses recognised in the prior period statement of profit or loss and other comprehensive income resulting from the impairment of debt securities are reversed through the statement of profit or loss and other comprehensive income, if the subsequent increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss. Financial liabilities Financial liabilities are recognised when the Company becomes a party to the contractual agreements of the instrument. All interest-related charges and, if applicable, changes in an instrument's fair value that are reported in profit or loss are included in the statement of profit or loss and other comprehensive income line items "finance costs" or "finance income". Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities depending on the purpose for which the liability was acquired. The Company s financial liabilities include borrowings, trade and other payables (including finance lease liabilities), which are measured at amortised cost using the effective interest rate method. Impairment of financial assets At the end of the reporting period the Company assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Financial assets at amortised cost If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset s carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate. Impairment on loans and receivables is reduced through the use of an allowance accounts, all other impairment losses on financial assets at amortised cost are taken directly to the asset. 12

15 1 Summary of Significant Accounting Policies continued (i) Financial instruments continued Available-for-sale financial assets A significant or prolonged decline in value of an available-for-sale asset below its cost is objective evidence of impairment, in this case, the cumulative loss that has been recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment. Any subsequent increase in the value of the asset is taken directly to other comprehensive income. (j) Impairment of non-financial assets At the end of each reporting period the Company determines whether there is an evidence of an impairment indicator for non-financial assets. Where this indicator exists the recoverable amount of the assets is estimated. Where assets do not operate independently of other assets, the recoverable amount of the relevant cashgenerating unit (CGU) is estimated. The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cashgenerating unit. Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss. Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss. (k) Intangible Assets Software Software is recorded at cost. Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of between one and three years. Amortisation Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. 13

16 1 Summary of Significant Accounting Policies continued (l) Cash and cash equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flows and are presented within current liabilities on the statement of financial position. (m) Employee benefits Provision is made for the Company's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than twelve months after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss. Employee benefits are presented as current liabilities in the statement of financial position if the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date regardless of the classification of the liability for measurement purposes under AASB 119. Defined contribution schemes Obligations for contributions to defined contribution superannuation plans are recognised as an employee benefit expense in profit or loss in the periods in which services are provided by employees. 2 Critical accounting estimates and judgments The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. The significant estimates and judgements made have been described below. Key judgments - provision for impairment of receivables The value of the provision for impairment of receivables is estimated by considering the ageing of receivables, communication with the debtors and prior history. Key judgments - provision for inventories At the year end management do not believe there is any need for an obsolescence provision for inventory. The inventory held is reviewed on a monthly basis to determine whether there is any old, damaged or obsolete stock or any other stock items which need to be written down to NRV. 14

17 3 Revenue and Other Income Sales revenue - sale of goods 63,489,011 61,811,141 Other Income Finance income 27,711 72,661 Other income 2,663,602 2,787,014 4 Result for the Year 2,691,313 2,859,675 Expenses Interest expense on financial liabilities not at fair value through profit or loss: external 426, ,145 5 Income Tax Expense (a) The major components of tax expense (income) comprise: Current tax expense Local income tax - current period 1,336, ,740 (b) Reconciliation of income tax to accounting profit: Prima facie tax payable on profit from ordinary activities before income tax at 30% (: 30%) 1,127, ,792 Add: Tax effect of: - non-deductible expenses 180,916 84,647 - changes in recognised temporary differences 28,654 - Less: 1,336,741 1,039,439 Tax effect of: - tax incentives - 154,699 Income tax expense 1,336, ,740 Weighted average effective tax rate 36 % 27 % The increase in the weighted average effective tax rate for is a result of increased non-deductible expenses and changes in estimation of balances. 15

18 6 Cash and cash equivalents Note Cash at bank and in hand 308,194 57,907 Short-term bank deposits 590,413 13, ,607 71,852 Reconciliation of cash Cash and Cash equivalents reported in the statement of cash flows are reconciled to the equivalent items in the statement of financial position as follows: Cash and cash equivalents 898,607 71,852 7 Trade and other receivables CURRENT Trade receivables 3,178,196 4,752,454 Provision for impairment (a) (45,889) (6,921) 3,132,307 4,745,533 Loans to directors, managers and employees 1,154, ,891 Other receivables 111,124 87,857 Total current trade and other receivables 4,398,253 5,819,281 (a) Impairment of receivables Reconciliation of changes in the provision for impairment of receivables is as follows: Balance at beginning of the year 6,921 21,569 Additional impairment loss recognised 158,413 29,068 Provision used (119,445) (43,716) Balance at end of the year 45,889 6,921 The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances. 8 Inventories CURRENT At cost: Raw materials and consumables 624, ,504 Work in progress 119,954 97,292 Finished goods 17,923,662 16,211,903 Goods in transit 160, ,266 18,829,121 17,124,965 Write downs of inventories to net realisable value during the year were NIL (: NIL). 16

19 9 Other financial assets Note NON-CURRENT Available for sale financial assets (a) 499, ,131 (a) Available-for-sale financial assets comprise: NON-CURRENT Listed investments - shares in listed entities - fair value 499, , Property, plant and equipment Buildings At cost 3,646,400 3,619,410 Accumulated depreciation (1,887,801) (1,458,637) Total buildings 1,758,599 2,160,773 Plant and equipment At cost 3,414,732 3,353,848 Accumulated depreciation (2,023,294) (1,755,986) Total plant and equipment 1,391,438 1,597,862 Furniture, fixtures and fittings At cost 242, ,085 Accumulated depreciation (141,273) (125,856) Total furniture, fixtures and fittings 100,841 67,229 Motor vehicles At cost 432, ,239 Accumulated depreciation (294,828) (280,435) Total motor vehicles 137, ,804 Computer equipment At cost 1,850,791 1,672,709 Accumulated depreciation (1,269,764) (1,037,139) Total computer equipment 581, ,570 Leasehold Improvements At cost 1,221,126 1,202,053 Accumulated depreciation (266,047) (160,896) Total leasehold improvements 955,079 1,041,157 Total property, plant and equipment 4,924,982 5,736,395 17

20 10 Property, plant and equipment continued (a) Movements in carrying amounts of property, plant and equipment Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Furniture, Buildings Plant and Equipment Fixtures and Fittings Motor Vehicles Computer Equipment Leasehold Improvements Total Year ended 30 June Balance at the beginning of year 2,160,773 1,597,862 67, , ,570 1,041,157 5,736,395 Additions 26, ,340 49, ,068 19, ,500 Disposals - written down value - (82,456) - (81,413) (23,986) - (187,855) Depreciation expense (429,164) (267,308) (15,417) (14,393) (232,625) (105,151) (1,064,058) Balance at the end of the year 1,758,599 1,391, , , , ,079 4,924,982 18

21 11 Intangible Assets Computer software Cost 3,162,730 3,159,791 Accumulated amortisation and impairment (1,369,445) (1,008,273) Net carrying value 1,793,285 2,151,518 (a) Movements in carrying amounts of intangible assets Computer software Total Year ended 30 June Balance at the beginning of the year 2,151,518 2,151,518 Additions 2,939 2,939 Amortisation (361,172) (361,172) Closing value at 30 June 1,793,285 1,793, Other non-financial assets CURRENT Prepayments 661, ,780 Other current assets 804, ,150 1,466,452 1,278, Trade and other payables CURRENT Unsecured liabilities Trade payables 458,987 2,081,113 Operating lease payables 35, ,076 Sundry payables and accrued expenses 232, ,418 Royalties payable 998,040 1,175,151 Other payables 6,964 76,677 1,732,348 3,712,435 All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value. 19

22 14 Borrowings CURRENT Secured liabilities: Bank loans 1,458,706 2,151,102 Whilst the whole loan balance is classified as current in accordance with AASB 101 Presentation of Financial Statements, we expect that 400,000 of the balance will be repaid within 12 months in accordance with the loan agreement with the remainder being paid over the next 2-5 years. The bank debt is secured by a registered first mortgage over certain freehold properties owned by the Company. Covenants imposed by the bank require total bank debt not to exceed 30% of total tangible assets, total liabilities not the exceed 20% of total tangible assets, and borrowing costs not to exceed 15% of EBIT. The financial assets pledged as collateral represent a floating charge and cannot be disposed of without consent of the financier. (a) Defaults and breaches During the current and prior year, there were no defaults or breaches on any of the loans. 15 Other Financial Liabilities CURRENT Deferred income 45,490 9, Employee Benefits CURRENT Long service leave 562, ,894 Superannuation 172, ,253 Annual leave 1,036, ,957 1,770,775 1,760,104 NON-CURRENT Long service leave 233, ,510 20

23 17 Issued Capital 3,000,000 (: 3,000,000) Ordinary shares 3,259,673 3,259,673 (a) Ordinary shares No. No. At the beginning and end of the reporting period 3,000,000 3,000,000 The holders of ordinary shares are entitled to participate in dividends and the proceeds on winding up of the Company. On a show of hands at meetings of the Company, each holder of ordinary shares has one vote in person or by proxy, and upon a poll each share is entitled to one vote. The Company does not have authorised capital or par value in respect of its shares. 18 Reserves and retained surplus Financial asset reserve Change in the fair value of available for sale investments are recognised in other comprehensive income - financial asset reserve. Amounts are reclassified to profit or loss on disposal of the investment or when an impairment arises. 19 Capital and Leasing Commitments (a) Operating Leases Minimum lease payments under non-cancellable operating leases: - not later than one year 76,000 76,000 - between one year and five years 208, ,000 - later than five years 654, , ,000 1,004,000 Leases are for buildings used in regional areas and have terms ranging from 5 to 15 years. 21

24 20 Tax assets and liabilities Income tax payable 473,910 (568,961) GST payable 36, ,668 Other current tax payable 319, ,035 Current tax liabilities 830, ,742 Recognised deferred tax assets and liabilities Deferred tax assets 623, , Key Management Personnel Disclosures The total remuneration paid to key management personnel of the Company is 1,022,902 (: 1,014,236). 22 Fair Value Measurement The Company measures the following assets and liabilities at fair value on a recurring basis: Financial assets Shares in listed entities Fair value hierarchy AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a level in the fair value hierarchy as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Unobservable inputs for the asset or liability. The table below shows the assigned level for each asset and liability held at fair value by the Company: Level 1 Level 2 Level 3 30 June Total Recurring fair value measurements Financial assets Shares in listed entities 499, , June Recurring fair value measurements Financial assets Shares in listed entities 531, ,131 The fair value was obtained by using the quoted prices of the securities at the end of trading at the reporting date. 22

25 23 Contingencies In the opinion of the Directors, the Company did not have any contingencies at 30 June (30 June :None). 24 Related Parties The Company's main related parties are as follows: (a) Key management personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity is considered key management personnel. For details of disclosures relating to key management personnel, refer to Note 21: Key Management Personnel Compensation. (b) Other related parties Other related parties include immediate family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel, individually or collectively with their immediate family members. (c) Transactions with related parties Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. (i) Trade and other receivables Loans are made to directors of the chief entity and controlled entity. Interest payable at 4% and monthly principal and interest repayments are made over the terms ranging from 1 to 4 years. 25 Events Occurring After the Reporting Date No matters or circumstances have arisen since the end of the financial year which 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 future financial years. 26 Company Details The registered office of the company is: CaseWare Australia & New Zealand Large General Purpose RDR Company 101 High Street Melbourne Victoria

26 Directors' Declaration The directors of the Company declare that: 1. The financial statements and notes, as set out on pages 5 to 23, are in accordance with the Corporations Act 2001 and: a. comply with Accounting Standards - Reduced Disclosure Requirements; and b. give a true and fair view of the financial position as at 30 June and of the performance for the year ended on that date of the Company. 2. 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. Director... Andrew Ball Director... Jeremy Smith Dated 30 March 24

27 Independent Audit Report to the members of CaseWare Australia & New Zealand Large General Purpose RDR Company Report on the Financial Report We have audited the accompanying financial report of CaseWare Australia & New Zealand Large General Purpose RDR Company, which comprises the statement of financial position as at 30 June, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration. Directors' Responsibility for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company s preparation of the financial report that gives a true and fair view 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of CaseWare Australia & New Zealand Large General Purpose RDR Company, would be in the same terms if given to the directors as at the time of this auditor s report. 25

28 Independent Audit Report to the members of CaseWare Australia & New Zealand Large General Purpose RDR Company Opinion In our opinion the financial report of CaseWare Australia & New Zealand Large General Purpose RDR Company is in accordance with the Corporations Act 2001, including: (a) (b) giving a true and fair view of the Company s financial position as at 30 June and of its performance for the year ended on that date; and complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations A N Auditor Melbourne 30 September 26