Directors Report. Director details The following persons were Directors of Barossa Co-op during or since the end of the financial year:

Transcription

1 Directors Report The Directors of The Community Co-operative Store (Nuriootpa) Ltd ( The Co-op ) present their report together with the financial statements of the Consolidated Entity, being Barossa Co-op ( the Company ) and its controlled entities ( the Group ) for the year ended 31 January 2017 and the Independent Audit Report thereon. Director details The following persons were Directors of Barossa Co-op during or since the end of the financial year: Phillip Schmaal MBA, Dip CM, MAICD, ACIS, AGIA Chairman Director since April 2011 John Curnow MAICD Deputy Chairman Director since April 2013 Guy Ewing DPharm, MAICD Director Director since June 2010 Katherine Newland MAICD Director Director since April Resigned 31 October 2016 Rebecca Tolhurst LLB (Hons), BComm, MAICD Director Director since March 2012 Stephen O Loughlin BCom (VPM), AAPI CPP, MAICD Director Director since August 2013 Page 1

2 John Auld RDWM, MAICD Director Director since February 2014 Kevin Renshaw CPA, BBus Director Appointed November 2016 Principal activities The principal activity of the Group is to provide outstanding and sustainable shopping choice and retail services to our Members and the Barossa community. There have been no significant changes in the nature of these activities during the year. Review of operations and financial results Commencement of the redevelopment during the year and an extraordinary year of weather impacted the business performances. Together with the ongoing competitive nature of retail continues to put pressure on the margins across all stores. Excellent buying programs and relationships with suppliers has enabled The Co-op to maintain gross margins at a similar level to last year a positive outcome in this environment. A year of careful expense control has also contributed to a reduction in operating costs to combat the disruption of the construction work. Significant changes in the state of affairs The commencement of the strategic redevelopment in 2016/17 was a significant change in the state of affairs for The Co-op taking on bank funding with CBA and reviewing the accounting treatment of assets held now and in the future. Events arising since the end of the reporting period No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in the future financial years. Likely developments The material business risks faced by the Group that are likely to have an effect on the financial prospects of the Group, and how the Group manages these risks include: External bank funding with CBA including covenant requirements. Management have implemented a robust forecasting system to ensure that business performance and cash flows are projected well in advance and immediate action can be triggered if required. A risk assessment with mitigations has been developed for worst case scenarios to protect The Co-op and members. Page 2

3 Directors meetings The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the number of meetings attended by each Director is as follows: Audit and Risk Board Meetings Committee Board Member A B A B Phillip Schmaal John Curnow John Auld Katherine Newland Rebecca Tolhurst Guy Ewing Stephen O Loughlin Kevin Renshaw Where: column A: is the number of meetings the Director was entitled to attend column B: is the number of meetings the Director attended Unissued shares under option No options over issued shares or interests in Barossa Co-op were granted during or since the end of the financial year and there were no options outstanding at the end of the financial year. Shares issued during the year During the financial year, the Company issued ordinary shares to directors and other key management personnel. Refer to note 18 to the financial statements. Environmental legislation Barossa Co-op operations are not subject to any particular or significant environmental regulation under a law of the Commonwealth or of a State or Territory in Australia. Indemnities given to, and insurance premiums paid for, auditors and officers Insurance of officers During the year, Barossa Co-op paid a premium to insure officers of the Group. The officers of the Group covered by the insurance policy also includes all Directors. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the Group, and any other payments arising from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else to cause detriment to the Group. Page 3

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5 Grant Thornton House Level Frome Street Adelaide, SA 5000 Correspondence to: GPO Box 1270 Adelaide SA 5001 T F E info.sa@au.gt.com W AUDITOR S INDEPENDENCE DECLARATION TO THE DIRECTORS OF THE COMMUNITY CO-OPERATIVE STORE (NURIOOTPA) LTD In accordance with the requirements of section 307C of the Co-operatives National Law (South Australia) Act 2013, as lead auditor for the audit of The Community Co-operative Store (Nuriootpa) Ltd for the year ended 31 January 2017, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Co-operatives National Law (South Australia) Act 2013 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. GRANT THORNTON AUDIT PTY LTD Chartered Accountants Justin Humphrey Partner - Audit & Assurance Adelaide, 24 May 2017 Grant Thornton Audit Pty Ltd ACN a subsidiary or related entity of Grant Thornton Australia Ltd ABN Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another s acts or omissions. In the Australian context only, the use of the term Grant Thornton may refer to Grant Thornton Australia Limited ABN and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. Page 5

6 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Note Revenue 14 67,445,818 68,507,658 Changes in inventories 15(a) (594,153) (185) Costs of goods sold 15(a) (49,250,953) (50,054,333) Employee benefits expense (10,312,738) (11,009,226) Depreciation and amortisation expense (868,022) (906,078) Other expenses (4,513,302) (4,899,951) Loss on disposed / demolished property, plant and equipment (141,668) - Finance costs (109,502) (139,366) Profit from ordinary activities before appropriations to members 1,655,480 1,498,519 Rebates to members (367,101) (392,304) Interest on share capital (150,898) (161,684) Profit from ordinary activities before income tax expense 1,137, ,531 Income tax expense 16(a) (300,848) (295,430) Profit for the year 836, ,101 Other comprehensive income: - - Other comprehensive income for the year, net of tax - - Total comprehensive income for the year 836, ,101 Page 6

7 Note ASSETS CURRENT ASSETS Cash and cash equivalents 2 1,040,035 1,519,452 Trade and other receivables 3 728,255 1,034,211 Current tax receivables ,038 50,488 Inventories 4 5,980,128 6,574,281 TOTAL CURRENT ASSETS 7,865,456 9,178,432 NON-CURRENT ASSETS Trade and other receivables - 12,330 Financial assets 5 70,271 60,581 Property, plant and equipment 6 53,834,450 38,505,683 Deferred tax assets , ,065 TOTAL NON-CURRENT ASSETS 54,379,876 38,993,659 TOTAL ASSETS 62,245,332 48,172,091 LIABILITIES CURRENT LIABILITIES Trade and other payables 7 5,467,478 4,072,938 Borrowings 8 4,547,006 4,145,148 Employee benefits 9 1,286,666 1,267,577 TOTAL CURRENT LIABILITIES 11,301,150 9,485,663 NON-CURRENT LIABILITIES Employee benefits 9 45, ,157 Borrowings 8 11,314,394 94,668 Deferred tax liabilities 17 4,218,176 4,042,743 TOTAL NON-CURRENT LIABILITIES 15,578,281 4,271,568 TOTAL LIABILITIES 26,879,431 13,757,231 NET ASSETS 35,365,901 34,414,860 EQUITY Issued capital 10 4,136,341 4,021,933 Reserves 10,804,681 11,837,224 Retained earnings 20,424,879 18,555,703 Total equity attributable to equity holders of the Co-operative 35,365,901 34,414,860 TOTAL EQUITY 35,365,901 34,414,860 Page 7

8 STATEMENT OF CHANGES IN EQUITY Asset Capital Ordinary Realisation Profits Retained Shares Reserve Reserve Earnings Total $ Balance at 31 January ,998,708 10,804,681 1,032,543 17,906,602 33,742,534 Profit attributable to members of the parent entity , ,101 Total other comprehensive income for the year Transactions with owners in their capacity as owners Shares issued during the year 291, ,723 Shares bought back during the year (268,498) (268,498) Sub-total 23, , ,326 Balance at 31 January ,021,933 10,804,681 1,032,543 18,555,703 34,414,860 Asset Capital Ordinary Realisation Profits Retained Shares Reserve Reserve Earnings Total $ Balance at 31 January ,021,933 10,804,681 1,032,543 18,555,703 34,414,860 Profit attributable to members of the parent entity , ,633 Total other comprehensive income for the year Transfer to retained earnings - - (1,032,543) 1,032,543 - Transactions with owners in their capacity as owners Shares issued during the year 435, ,378 Shares bought back during the year (320,970) (320,970) Sub-total 114,408 - (1,032,543) 1,869, ,041 Balance at 31 January ,136,341 10,804,681-20,424,879 35,365,901 Page 8

9 STATEMENT OF CASH FLOWS Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 67,747,958 68,304,116 Payments to suppliers and employees (62,770,529) (66,171,518) Borrowing costs (109,502) (392,304) Interest received 16,250 19,518 Appropriations to members (465,280) (320,879) Income tax paid (252,055) (393,791) Net cash provided by operating activities 21 4,166,842 1,045,142 CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (16,041,691) (1,469,354) Borrowing costs capitalised to property, plant and equipment (296,766) - Proceeds from sale of property, plant and equipment 18,615 - Payments for investments (9,690) (6,588) Net cash used by investing activities (16,329,532) (1,475,942) CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from issue and redemption of shares 114,408 23,225 Repayment of borrowings (88,853) (167,585) Proceeds from borrowings 11,657,718 - Net cash used by financing activities 11,683,273 (144,360) Net increase (decrease) in cash and cash equivalents held (479,417) (575,160) Cash and cash equivalents at beginning of year 1,519,452 2,094,612 Cash and cash equivalents at end of financial year 2 1,040,035 1,519,452 Page 9

10 The financial report includes the consolidated financial statements and notes of The Community Co-Operative Store (Nuriootpa) Ltd and controlled entities (the Co-operative). The Community Co-Operative Store (Nuriootpa) Ltd is a for profit co-operative. NOTE 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, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Co-operatives National Law (South Australia) Act 2013 The financial statement covers The Community Co-operative Store (Nuriootpa) Ltd as an individual entity and The Community Co-operative Store (Nuriootpa) Ltd and controlled entities as the consolidated group. The Community Co-operative Store (Nuriootpa) Ltd is a co-operative, incorporated under the Co-operatives National Law (South Australia) Act 2013 and domiciled in Australia. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. 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. (b) Comparative figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. When the Co-operative applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest comparative period will be presented. (c) Principles of consolidation The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by The Community Co-Operative Store (Nuriootpa) at the end of the reporting period. A controlled entity is any entity over which The Community Co-Operative Store (Nuriootpa) has the power to govern the financial and operating policies so as to obtain benefits from its activities. Control will generally exist when the parent owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity. In assessing the power to govern, the existence and effect of holdings of actual and potential voting rights are also considered. In preparing the consolidated financial statements, all inter-group balances and transactions between entities in the Co-operative have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those adopted by the parent entity. Subsidiaries Subsidiaries are all entities (including structured entities) over which the parent has control. Control is established when the parent is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Page 10

11 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT) (d) (e) Inventories Inventories are measured at the lower of cost and net realisable value. Overheads are applied on the basis of normal operating capacity. Costs are assigned on the basis of weighted average costs, except for the Foodland division which is based on last cost. Costs of purchased inventory are determined after deducting relevant rebates and discounts. Property, plant and equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings. An independent valuation was carried out in December 2011 by Craig Barlow a certified practising valuer of Knight Frank. Revaluation of land and buildings has been deferred until the completion of the redevelopment project. It is expected that construction will be completed before the end of next year. Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve (net of tax) in equity. Decreases that offset previous increases of the of the same asset are charged against this reserve directly in equity; all other decreases are charged to the statement of profit and loss or other comprehensive income. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Plant and equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses. Cost includes expenditure that is directly attributable to installing assets ready for use. Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated over the asset's useful life to the Co-operative commencing from the time the asset is held ready for use. Land is not depreciated. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Buildings Plant and Equipment Motor Vehicles Depreciation Rate 2.5% - 4% 5% - 50% 18.75% The assets' residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Page 11

12 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT) (e) (f) Property, plant and equipment (Cont) Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit and loss. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. Financial instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is the equivalent to the date that the Co-operative commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Classification and subsequent measurement Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in arm's length transaction. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as: (a) (b) (c) (d) the amount at which the financial asset or financial liability is measured at initial recognition; less principal payments; plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and less any reduction for impairment. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. The Co-operative does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments. (i) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. Available-for-sale financial assets are included in non-current assets, except for those which are expected to be realised within 12 months after the end of the reporting period. Page 12

13 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT) (f) Financial instruments (Cont) (ii) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Fees payable on the establishment of loan facilities are recognised as transaction costs of the loan. Borrowings are classified as current liabilities unless the Co-operative has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models. Impairment Objective evidence that a financial asset is impaired includes default by a debtor, evidence that the debtor is likely to enter bankruptcy or adverse economic conditions. At the end of each reporting period, the Co-operative assess whether there is objective evidence that a financial asset has been impaired through the occurrence of a loss event. In the case of available-for-sale financial instruments, a significant or prolonged decline in the value of the instrument is considered to indicate that an impairment has arisen. Where a subsequent event causes the amount of the impairment loss to decrease (e.g. payment received), the reduction in the allowance account (provision for impairment of receivables) is taken through profit and loss. However, any reversal in the value of an impaired available for sale asset is taken through other comprehensive income rather than profit and loss. Impairment losses are recognised through an allowance for loans and receivables in the statement of comprehensive income. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer as any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer or non-cash assets or liabilities assumed, is recognised in profit or loss. When available-for-sale investments are sold, the accumulated fair value adjustments recognised in other comprehensive income are reclassified to profit or loss. Page 13

14 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT) (g) Impairment of non-financial assets At the end of each reporting period, the Co-operative assesses whether there is any indication that an asset may be impaired. The assessment will include considering external sources of information and internal sources of information and dividends received from subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use to the asset's carrying value. Value in use is calculated by discounting the estimated future cash flow of the asset or cash generating unit (CGU) at a pre-tax discount rate reflecting the specific risks in the asset / CGU. Any excess of the asset's carrying value over its recoverable amount is expensed to the statement of comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the Co-operative estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment losses recognised in respect of CGU's are allocated first to reduce the carrying amount of goodwill to nil and then to the other assets in the unit in proportion to their carrying amount. Impairment losses are recognised as an expense immediately, unless the relevant asset is property, plant and equipment held at fair value (other than investment property carried at a revalued amount) in which case the impairment loss is treated as a revaluation decrease as described in the accounting policy for property, plant and equipment. (h) (i) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less which are convertible to a known amount of cash and subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. Employee benefits Provision is made for the Co-operative'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 settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year 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. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows. (j) (k) Trade and other payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Co-operative during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. Income tax The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income). Page 14

15 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT) (k) Income tax (Cont) 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 the end of the reporting period. Current tax liabilities (assets) are therefore measured at the amounts to be paid to (recovered from) the relevant taxation authority. Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss. Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated 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 enacted or substantively enacted at the end of the reporting year. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future. Current assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled. (l) 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. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. Page 15

16 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT) (m) Revenue and other income The Co-operative recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Co-operative's activities. Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Sale of goods Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Interest revenue Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Rental income Investment property revenue is recognised on a straight-line basis over a period of the lease term so as to reflect a constant periodic rate of return on the net investment. All revenue is stated net of the amount of goods and services tax (GST). (n) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. (o) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of the acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (p) Critical accounting estimates and judgements The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Co-operative. Key estimates - impairment of plant and equipment The Co-operative assesses impairment at the end of each reporting period by evaluating conditions specific to the Co-operative that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. Page 16

17 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT) (p) Critical accounting estimates and judgements (Cont) 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 estimates - fair value of land and buildings The Co-operative carries its land and buildings at fair value with changes in the fair value recognised in revaluation reserve. Independent valuations are obtained at least triennially and at the end of each reporting period, the directors update their assessment of the fair value of each property, taking into account the most recent valuations and movements in the market. Revaluation of land and buildings has been deferred until the completion of the redevelopment project. It is expected that construction will be completed before the end of next year. (q) New Accounting Standards and Interpretations The Co-operative has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The accounting standards that have not been early adopted for the year ended 31 January 2017, but will be applicable to the Co-operative in future reporting periods, are detailed below. Apart from these standards, other accounting standards that will be applicable in future periods have been reviewed, however they have been considered to be insignificant to the Co-operative. At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards have been published but are not yet effective, and have not been adopted early by the Co-operative. Management anticipates that all of the relevant pronouncements will be adopted in the Co-operative accounting policies for the first period beginning after the effective date of pronouncement. Information on new standards, amendments and interpretations that are expected to be relevant to the Co-operative financial statements is provided below. Standard / Interpretation AASB 9 Financial Instruments, AASB Amendments to Australian Accounting Standards arising from AASB 9 (December 2010), AASB Amendments to Australian Accounting Standards (Part E- Financial Instruments), AASB Amendments to Australian Accounting Standards arising from AASB 9 (December 2014). AASB 15 'Revenue from Contracts with Customers' AASB 16 'Leases' AASB 'Amendments to Australian Accounting Standards - Recognition of Deferred Tax Assets for Unrealised Losses' AASB 'Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB 107' Effective Date 01-Jan Jan Jan Jan Jan-17 We do not expect these accounting standards will have any material impact on our financial results upon adoption. Page 17

18 NOTE 2: CASH AND CASH EQUIVALENTS Note Cash on hand 6,326 39,209 Cash at bank 1,033,709 1,480,243 Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows: 1,040,035 1,519,452 Cash and cash equivalents 1,040,035 1,519,452 Balance as per statement of cash flows 1,040,035 1,519,452 The effective interest rate on short-term bank deposits was 1.6% (2016: 1.3%). These deposits have an average maturity of one year. NOTE 3: TRADE AND OTHER RECEIVABLES CURRENT Trade receivables 435, ,528 Provision for impairment (15,000) (30,000) 420, ,528 Prepayments 145, ,949 Other receivables 163, ,734 Total current trade and other receivables 728,255 1,034,211 (a) Collateral held as security The Co-operative does not hold any collateral over any receivables balances. (b) Past due but not impaired Past Due Past Due but not impaired Gross and (Days Overdue) Amount Impaired < Trade receivables 435,045 15, ,326 27,355 15,508 5, Trade receivables 409,528 30, ,383 20,424 10,151 6,570 (c) Fair value and credit risk Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value. Page 18

19 Note NOTE 4: INVENTORIES CURRENT Merchandise on hand 6,173,151 6,585,726 Provision for obsolescence (193,023) (11,445) 5,980,128 6,574,281 NOTE 5: OTHER FINANCIAL ASSETS NON-CURRENT Available for sale financial assets (a) 70,271 60,581 (a) Available-for-sale financial assets comprise: NON-CURRENT Unlisted investments, at cost - shares in other corporations 70,271 60,581 Total available-for-sale financial assets 70,271 60,581 Unlisted investments are not traded in an active market and therefore fair value cannot be reliably measured. NOTE 6: PROPERTY, PLANT AND EQUIPMENT Land and buildings At directors' valuation as at ,495,583 5,495,583 At independent valuation as at ,119,278 30,119,278 At cost 321, ,768 Accumulated depreciation (1,930,785) (1,534,550) Total land and buildings 34,005,640 34,420,079 Capital works in progress At cost 17,716,468 1,641,847 Total capital works in progress 17,716,468 1,641,847 Plant and equipment At cost 10,540,582 10,426,218 Accumulated depreciation (8,453,559) (8,014,807) Total plant and equipment 2,087,023 2,411,411 Motor vehicles At cost 179, ,644 Accumulated depreciation (154,606) (166,298) Total motor vehicles 25,319 32,346 Total plant and equipment 19,828,810 4,085,604 Total property, plant and equipment 53,834,450 38,505,683 Page 19

20 NOTE 6: PROPERTY, PLANT AND EQUIPMENT (CONT) (a) Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Land & Capital Works Plant & Motor Buildings in Progress Equipment Vehicles Total $ Balance at the beginning of the year 34,420,079 1,641,847 2,411,411 32,346 38,505,683 Additions 133,114 16,074, ,722-16,338,457 Disposals - written down value (151,318) - 9,754 (104) (141,668) Depreciation (396,235) - (464,864) (6,923) (868,022) Balance at 31 January ,005,640 17,716,468 2,087,023 25,319 53,834,450 NOTE 7: TRADE AND OTHER PAYABLES CURRENT Unsecured liabilities: Trade payables 3,173,555 2,677,901 Sundry payables and accrued expenses 2,129,180 1,257,160 Unclaimed member appropriations from closed accounts 164, ,877 5,467,478 4,072,938 NOTE 8: BORROWINGS CURRENT Unsecured liabilities: Other loans - members 4,140,818 4,089,357 Other financial liabilities - 5,432 4,140,818 4,094,789 Secured liabilities: Bank loans 300,000 - Finance lease liability 106,188 50, ,188 50,359 Total current borrowings 4,547,006 4,145,148 NON-CURRENT Secured liabilities: Bank loans 11,231,820 - Finance lease liability 82,574 94,668 Total non-current borrowings 11,314,394 94,668 Total borrowings 15,861,400 4,239,816 Page 20

21 NOTE 8: BORROWINGS (CONT) (a) The carrying amounts of non-current assets pledged as security are: First Mortgage: - freehold land and buildings 34,005,640 34,420,079 The bank debt with Commonwealth Bank of Australia is secured by a first registered mortgage over which certain freehold properties owned by the Co-operative. Cash and cash equivalents are pledged against the bank overdraft on an ongoing floating basis for the term of the bank overdraft's maturity. (b) Defaults and breaches During the current and prior year, there were no defaults or breaches on any of the covenants attached to loans. Loan covenants to be tested quarterly on a rolling 12 month basis include: - Minimum EBITDA covenant (greater than or equal to $2,300,000 during construction loan) - Minimum EBITDA covenant (greater than or equal to $2,500,000 during term loan) - Interest Coverage Ratio (to be greater than 1.5x during construction loan) - Debt Service Coverage Ratio (to be greater than 1.5x during term loan) - Loan to Valuation Ratio (no greater than 71% of the "on completion" valuations, reducing to no greater than 70% within 6 months commencement of the term loan) NOTE 9: EMPLOYEE BENEFITS CURRENT Leave entitlements 1,286,666 1,267,577 NON-CURRENT Leave entitlements 45, ,157 NOTE 10: ISSUED CAPITAL Ordinary Shares Issued 4,136,341 4,021,933 (a) No. No. Ordinary shares At the beginning of the reporting period 2,010,966 1,999,354 Shares issued during the year 217, ,861 Shares redeemed (160,485) (134,249) At the end of the reporting period 2,068,170 2,010,966 Page 21

22 NOTE 10: ISSUED CAPITAL (CONT) The capital of the parent company consists of an unlimited number of shares of a nominal value of $2.00 each. The maximum shareholding of any one individual Shareholder is 25,000 shares. The shares may be redeemed, upon application of a Member, or transferred to a Member, subject to approval of the Board of Directors. NOTE 11: CAPITAL AND LEASING COMMITMENTS (a) (b) Operating lease commitments There are no operating lease commitments in the financial statements. Capital expenditure commitments Capital expenditure commitments contracted for: Capital expenditure projects 21,133,145 33,000,000 NOTE 12: LESSOR COMMITMENTS Operating lease commitments receivable - Group as lessor The Co-operative leases out its investment property under commercial leases. These leases have terms between 1 and 15 years. All leases include an option for the Co-operative to increase rent to current market rental on an annual basis for CPI and generally include the recovery of outgoings. Leases have re-entry clauses in the event of non-payment of rent and include re-development clauses with 6 months notice. NOTE 13: FINANCIAL RISK MANAGEMENT The main risks the Co-operative is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk, foreign currency risk and equity price risk. The Co-operative's financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, bank loans and overdrafts, loans to and from subsidiaries, bills, leases, preference shares, and derivatives. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Financial Assets Cash and cash equivalents 1,040,035 1,519,452 Available-for-sale financial assets: - at cost - unlisted investments 70,271 60,581 Total financial assets 1,110,306 1,580,033 Financial Liabilities Financial liabilities at amortised cost - Trade and other payables 5,467,478 4,072,938 - Borrowings 15,861,400 4,239,816 Total financial liabilities 21,328,878 8,312,754 Page 22

23 NOTE 13: FINANCIAL RISK MANAGEMENT (CONT) Financial risk management policies The Board of Directors has overall responsibility for the establishment of the Co-operative's financial risk management framework. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Co-operative's activities. The day-to-day risk management is carried out by the Co-operative's finance function under policies and objectives which have been approved by the Board of Directors. The Chief Financial Officer has been delegated the authority for designing and implementing processes which follow the objectives and policies. This includes monitoring the levels of exposure to interest rate and foreign exchange rate risk and assessment of market forecasts for interest rate and foreign exchange movements. The Board of Directors receives monthly reports which provide details of the effectiveness of the processes and policies in place. The Community Co-Operative Store (Nuriootpa) does not actively engage in the trading of financial assets for speculative purposes nor does it write options. Mitigation strategies for specific risks faced are described below: (a) Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Co-operative and arises principally from the Co-operative's receivables. It is the Co-operative's policy that all customers who wish to trade on credit terms undergo a credit assessment process which takes into account the customer's financial position, past experience and other factors. Credit limits are then set based on ratings in accordance with the limits set by the Board of Directors, these limits are reviewed on a regular basis. (b) Liquidity risk Liquidity risk arises from the possibility that the Co-operative might encounter difficulty in settling its debtors or otherwise meeting its obligations related to financial liabilities. the Co-operative manages this risk through the following mechanisms: preparing forward-looking cash flow analysis in relation to its operational, investing and financial activities which are monitored on a monthly basis; using derivatives that are only traded in highly liquid markets; monitoring undrawn credit facilities; obtaining funding from a variety of sources; maintaining reputable credit profile; managing credit risk related to financial assets; only investing surplus cash with major financial institutions; and comparing the maturity profit of financial liabilities with the realisation profile of financial assets. Typically, the Co-operative ensures that it has sufficient cash or bank facilities on demand to meet expected operational expenses for a period of 60 days. The available funds to the Co-operative are discussed in note 21(b). Page 23

24 NOTE 13: FINANCIAL RISK MANAGEMENT (CONT) Financial risk management policies (Cont) (b) Liquidity risk (Cont) Net fair values Fair value estimation The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Fair values derived may be based on information that is estimated or subject to judgement, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgement and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants. Financial instruments measured at fair value The financial instruments recognised at fair value in the statement of financial position have been analysed and classified using a fair value hierarchy reflecting the significance of inputs used in making the measurements between those whose fair value is based on. The fair value hierarchy consists of the following levels: - quoted prices in active markets for identical assets or liabilities (Level 1); - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and - inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). NOTE 14: REVENUE AND OTHER INCOME Revenue from continuing operations Sales revenue - sale of goods 66,665,650 67,743,432 Other revenue - interest received 16,250 19,517 - rental revenue for property investment 763, , , ,226 Total Revenue 67,445,818 68,507,658 Page 24

25 NOTE 15: RESULTS FOR THE YEAR (a) The result for the year includes the following specific expenses Changes in inventories 594, Cost of sales 49,250,953 50,054,333 Interest expense on financial liabilities at amortised cost - external 109, ,366 Total finance costs 109, ,336 NOTE 16: INCOME TAX EXPENSE (a) The components of tax expense comprise: Current tax expense Income tax - current period 300, ,430 Income tax expense for continuing operations 300, ,430 (b) The prima facie tax on profit from ordinary activities before income tax at 30% (2016: 30%) - economic entity 341, ,686 Add: Tax effect of: - Under/over provisions from prior years (42,809) 11,987 - Other non-allowable items 2,413 4,861 - Non-taxable income - (6,915) - Subsidiary loss - 1,811 (40,396) 11,744 Income tax expense 300, ,430 NOTE 17: TAX ASSETS & LIABILITIES Current tax asset 117,038 50,488 Deferred tax assets - Carried forward losses 60,854 54,108 - Provisions 414, , , ,065 Deferred tax liabilities 4,218,176 4,042,743 The balance comprises temporary differences attributable to land and buildings. Page 25

26 NOTE 18: RELATED PARTY TRANSACTIONS (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. Key management of the Co-operative are the Board of Directors and other key management personnel. The totals of remuneration paid to key management personnel of the Co-operative during the year are as follows: Short-term employee benefits Salaries and directors fees 596, ,249 Post-employment benefits Superannuation contributions 54,956 56,042 Total Remuneration 651, ,291 Key management personnel shareholdings The number of ordinary shares in The Community Co-Operative Store (Nuriootpa) held by each key management person of the Co-operative during the financial year is as follows: 31 January 2017 Balance at beginning of year Changes during the year Balance at end of year Directors Auld, John Curnow, John Ewing, Guy H Newland, Katherine A O'Loughlin, Stephen Renshaw, Kevin Schmaal, Phillip M Tolhurst, Rebecca Other key management 219 1, ,284 2,367 2, ,256 2,857 5,113 (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. The Co-operative transacted with one director and their related entity as a customer in relation to leased premises. The amount charged was based on normal market rates. The name of the related entity is Terry White Chemist. Page 26

27 NOTE 19: AUDITORS' REMUNERATION Remuneration of the auditor of the parent entity, Grant Thornton, for: - auditing the financial report 44,500 - Grant Thornton was appointed during the year. NOTE 20: CONTINGENT LIABILITIES AND CONTINGENT ASSETS In the opinion of the Directors, the Co-operative did not have any contingencies at 31 January 2017 (2016: None). NOTE 21: CASH FLOW INFORMATION (a) Reconciliation of result for the year to cash flows from operating activities Reconciliation of net income to net cash provided by operating activities: Profit for the year 836, ,059 Cash flows excluded from profit attributable to operating activities Non-cash flows in profit: - depreciation 868, ,078 - loss on disposal of property, plant and equipment 123,053 - Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries: - (increase)/decrease in trade and other receivables 318,286 (159,020) - (increase)/decrease in inventories 594,153 (185) - increase/(decrease) in trade and other payables 48,793 (298,508) - increase/(decrease) in income taxes payable 1,394,540 (100,501) - increase/(decrease) in provisions (69,357) 68,048 - increase/(decrease) in member loans 52,719 (19,829) Cash flow from operations 4,166,842 1,045,142 (b) Credit standby arrangement and loan facilities The Co-operative has a bank overdraft and commercial bill facility amounting to $34,100,000 (2016: $9,500,000). This may be terminated at any time at the option of the bank. At 31 January 2017, $11,531,820 of this facility was used (2016: $nil). Interest rates are variable. NOTE 22: EVENTS AFTER THE END OF THE REPORTING PERIOD The financial report was authorised for issue on 24 May 2017 by the board of directors. No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Co-operative, the results of those operations, or the state of affairs of the Co-operative in future financial years. Page 27

28 NOTE 23: PARENT ENTITY Statement of Financial Position Assets Current assets 7,730,645 9,105,089 Non-current assets 53,775,912 38,456,346 Total assets 61,506,557 47,561,435 Liabilities Current liabilities 22,465,153 9,506,187 Non-current liabilities 4,263,887 4,176,900 Total liabilities 26,729,040 13,683,087 Equity Issued capital 4,136,341 4,021,933 Retained earnings 30,641,176 29,856,415 Total Equity 34,777,517 33,878,348 Statement of Profit or Loss and Other Comprehensive Income Total profit or loss for the year 924, ,227 Total comprehensive income 924, ,227 NOTE 24: COMPANY DETAILS The registered office of and principal place of business of the Co-operative is: The Community Co-Operative Store (Nuriootpa) 3 Murray Street Nuriootpa, South Australia Page 28

29 Grant Thornton House Level Frome Street Adelaide, SA 5000 Correspondence to: GPO Box 1270 Adelaide SA 5001 T F E info.sa@au.gt.com W INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF THE COMMUNITY CO-OPERATIVE STORE (NURIOOTPA) LTD Auditor s Opinion We have audited the financial report of The Community Co-operative Store (Nuriootpa) Ltd (the Co-op), which comprises the consolidated statement of financial position as at 31 January 2017, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors declaration of and the consolidated entity comprising the Co-op and the entities it controlled at the year s end or from time to time during the financial year. In our opinion, the accompanying financial report of The Community Co-operative Store (Nuriootpa) Ltd is in accordance with the Co-operatives National Law (South Australia) Act 2013, including: a giving a true and fair view of the consolidated entity s financial position as at 31 January 2017 and of its performance for the year ended on that date; and b complying with Australian Accounting Standards and the Co-operatives National Law (South Australia) Act Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Co-op in accordance with the Co-operatives National Law (South Australia) Act 2013and the ethical requirements of the Accounting Professional and Ethical Standards Board s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Grant Thornton Audit Pty Ltd ACN a subsidiary or related entity of Grant Thornton Australia Ltd ABN Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another s acts or omissions. In the Australian context only, the use of the term Grant Thornton may refer to Grant Thornton Australia Limited ABN and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation.

30 Information other than the Financial Report and Auditor's Report Those charged with governance are responsible for the other information. The other information comprises the information included in the Co-op s annual report for the year ended 31 January 2017, but does not include the financial report and our auditor s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. 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. Responsibilities of the Directors for the Financial Report The Directors of the Co-op are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Co-operatives National Law (South Australia) Act The Directors responsibility also includes 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. In preparing the financial report, the Directors are responsible for assessing the Co-op 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 Co-op or to cease operations, or has no realistic alternative but to do so. Auditor s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards 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 this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: This description forms part of our auditor s report. GRANT THORNTON AUDIT PTY LTD Chartered Accountants J L Humphrey Partner Audit & Assurance Adelaide, 24 May 2017