annual report 2014€¦ · 6 annual report inglewood & districts community enterprises limited...

Annual Report2014

Inglewood & Districts Community Bank®Branch

ABN 87 123 959 375

Inglewood & Districts Community Enterprises Limited

Annual report Inglewood & Districts Community Enterprises Limited 1

Contents

Chairman’s report 2

Manager’s report 3

Directors’ report 4

Auditor’s independence declaration 11

Financial statements 12

Notes to the financial statements 16

Directors’ declaration 36

Independent audit report 37

NSX report 39

Annual report Inglewood & Districts Community Enterprises Limited2

For year ending 30 June 2014

On behalf of the Board I am pleased to report that we continue to deliver on the commitments that we originally

made to our shareholders and the broader community:

• Weprovideafirstclassbankingservice.

• Wegenerateprofitsthatarereturnedtothecommunity.

• Wehavealsobeenabletoregularlyreturndividendstoourloyalshareholders.

ThemajorchallengeforourBoardistoalwaysmaintainourfocusonthesecommitments.

Ourachievementstodateareacauseofcelebrationandpride.Wearea$100millionbusinessinasmall

communityandwehavenowreturnedintheorderof$800,000tothatcommunityintheformofsponsorshipsand

grants.Wewillcontinuetobuildonthoseachievements.Wewillcontinuetorepaythefaithofourcustomersand

shareholders.

Oursuccesshasnotcomeeasilyandwouldnothavebeenpossiblewithoutthehardworkanddedicationofour

staff,thecontinuedsupportshownbyourshareholdersandthesupportofourcustomers.OnbehalfoftheBoard

Ithankyouall.

TheBoardisalwayslookingfornewideas,newwaysinwhichbankingprofitscanbeusedtobuildabetter

community.Weneednewpeoplewithdifferentperspectivesanddifferentwaysofthinkingtojoinus.Weneedto

establishacontinuouscycleofregenerationandreinvigorationwithintheBoard.Pleaseconsiderbeingpartofthat

process.

Max Higgs

Chairman

Chairman’s report


For year ending 30 June 2014

AseachnewfinancialyearbeginsIwonderwhatchallengeswewillfaceastheyearunfolds.Wehaveagain

overcomethedifficultiesofchallengingfinancialmarketsandcompetitiveinterestratesthroughour‘Pointof

Difference’andcontinuedcommunitysupport.Sevenyearsonandourbusinesscontinuestogrowandgenerate

profitsenablingustocontributefundsbackintoourlocaldistricts.Itissorewardingtoseethemanyprojects

givennewlifeandtobepartofassistingourcommunitiestobecomemoresustainableforthefuture.

Asat30June2014ourbranchfigureswere:-

• Depositfootings $44,800million

• Lendingfootings $39,500million

• Otherbusiness $22,200million

• Totalbusiness $106,500million.

The2013/14financialyearsawtheoverallbusinesssizegrowfrom$104.7millionto$106.5million,agrowthof

$1.8millionfortheyear.Customernumbersareat2,245andoverthecountertransactionsare2,138permonth.

Wecontinuetobeleadersin‘communitydriven’initiatives,primarilythroughourDriversEducationProgram,

ScholarshipAwards,GrantsandSponsorshipswithcontributionstoourlocalcommunitiessinceopeningin

2007being$765,000.Inaddition,dividendshavealsobeenreturnedtoourShareholdersonaregularbasis

sinceopening.

Our branch needs your maximum support to enable us to increase the amount of funds we can contribute into the

communitysoifyouarenotalreadybankingwithuspleaseconsideritsothatyourbankingcanmakeadifference

toyourcommunity.

Duringthepast12monthstherehasbeenastaffchangewithinthebranch.JanStarrtransferredtoBendigo

CentralBranchinSeptember2013andNatalieRodwellcameontoourteamasaPart-timeCustomerService

OfficerinOctober2013.WewishJanallthebestinhernewroleandwelcomeNattoourbranch.WehopeNathas

a long and successful career with Inglewood & Districts Community Bank® Branch.

FinallyIwouldliketothankthededicatedstaffattheInglewood&DistrictsCommunity Bank® Branch,the

WedderburnAgencystaff,ourBoardofDirectors,RegionalOfficestaff,shareholdersandcustomers.Noneofthis

wouldbepossiblewithoutyourvaluedsupportanditisbecauseofyoursupportwehaveasuccessfulbranch,

successfulcustomersandasuccessfulcommunity.

Sincerely,

Jill Burdett

Branch Manager

Manager’s report


Directors’ reportForthefinancialyearended30June2014

Yourdirectorssubmitthefinancialstatementsofthecompanyforthefinancialyearended30June2014.

Directors

Thenamesanddetailsofthecompany’sdirectorswhoheldofficeduringorsincetheendofthefinancialyear:

Maxwell Charles Higgs

Chairman

GeneralMedicalPractitioner

GraduatedMBBSUniversityofMelbournein1981.HasworkedasaGeneralPractitionerintheareaforthe

past29years.Maxserved3yearsasCouncillorfortheInglewoodRidingShireofLoddon,previouslyamember

ofInglewood&DistrictHealthServicesBoardofManagement.

Chairman,Audit

Interestinshares:3,001

Kenneth John Canfield

Treasurer

PrimaryProducer

HeldexecutivepositionswiththeInglewoodGolfandBowlsClubs,MemberofSalisburyWestLandcareGroup

andmemberofSalisbury/PowlettFireBrigade.

Treasurer,Governance

Interestsinshares:1,001

Kim Hanlon

Secretary

Centre Manager

KimiscurrentlyemployedastheManageroftheInglewoodCommunityNeighbourhoodHouse.Previouslyan

EmploymentConsultantfortheSalvationArmyEmploymentPlus,ReceptionistatGirtonGrammarSchooland

InglewoodDistrictHealthServiceandOfficeManagerforanearthmovingcontractor.Herqualificationsinclude

aDiplomaofBusinessandCertificateIVinWorkplaceAssessmentandTraining.KimisaMemberofInglewood

sportinggroupsandisthePresidentoftheKorongNewsletter.In2010shegraduatedfromtheLoddonMurray

CommunityLeadershipProgram.

Interestinshares:Nil

Dale Thomas Jackson

Director

TechnicalOfficerEngineer

TechnicalDesignOfficerattheShireofLoddoninfrastructureDepartment.DiplomaofEngineering,Vice

PresidentoftheWedderburnBowlsClub,VicePresidentofWedderburnKorongvaleRSLInc,DonaldsonPark

CommitteeMemberandWedderburnCommunity Bank® SteeringCommitteeMember.

Marketing,InglewoodHallHubProject

Interestsinshares:501


Directors’ report (continued)

Directors (continued)

Andrew Richard Smith

Director

Operations Manager

AndrewistheOperationsManagerforalocalfertilizercompany.HeservesontheBoardofStMary’sPrimary

SchoolandisamemberoftheInglewoodCountryFireAuthoritywhereheholdsthepositionofLeiutenant.He

isalsotheCFALoddonSouthGroupDeputyGroupOfficer.

Marketing


Simon Patrick Tuohey

Director

PrimaryProducer

CurrentSecretaryforSerpentineCFA,memberofSerpentinePlanCommittee,BearsLagoonSerpentine

FootballClubCommittee(previouslypresident)andmemberofSerpentineTennisClub.


Jill McFarlane

Director

Retired

Secretaryoffamilyfarmingbusiness.ChairofManagementBoardofHeritageIndustriesMtGambier,Audit

CommitteeofNCCMABendigoandWedderburnConservationManagementNetwork.MemberofHeritage

Industriesfor21years(sinceestablishment).AlsopreviouslyBoardmemberforNorthCentralCatchment

ManagementAuthority.PreviouslyCouncillorforVictorianEnvironmentalAssessmentCouncil.Currentlymember

ofvariouscommunitygroupsandassociations.Previousemploymenthistoryincludes26yearsasmedical

socialworkerinregionalhospitals.


Colleen Mary Condliffe

Director

PrimaryProducer/LoddonShireCouncillor

ColleenhasaBio-ChemistryDegreeandisapartofarangeofcommunityorganisations.Sheisaboard

memberoftheWomenHealthLoddonMallee,theRuralFinancialCounsellingServiceandtheInglewood

CommunityNeighbourhoodHouse.SheisalsoaLoddonShireCouncillorandamemberoftheNewbridgeCWA

andtheSalisburyWestLandcareGroup.

Interest in shares: 1

David Allan Edwards

Director

Manger & Business Owner

AnexperienceOperationsManagerformorethan10years,currentlytheowneroftheBridgewaterFarmware.

HasbeeninvolvedincommunitygroupsincludingBridgewaterPrimarySchoolfor5years.Davidhasa

tertiaryqualificationinengineering,ProjectandOperationalManagement.HeldvariouscorporateOperations

Managementrolesoverthepast15years.

Interests in shares: 1



Directors (continued)

Linda Joy Younghusband

Director

FarmingAssistant/MedicalReceptionist

Previouslyco-owneroffamilybusiness,memberoftheInglewoodPrimarySchoolParentsAssociation

participatingastheSecretaryandTreasurer.CurrentlyamemberoftheWedderburnCollegeParents

Association,holdthepositionofInglewoodSchoolCouncillorandactivelyinvolvedinWedderburnsporting

groups.

Interestsinshares:500

Stewart Dean Luckman

Director

Banker

PreviouslyemployedasaFlourMilleratLauckeFlourMill.CurrentlyemployedasaBankerattheInglewood&

Districts Community Bank® Branch.MemberoftheInglewoodLionsClub,committeememberoftheInglewood

ChristmasCarolsevent,memberoftheAustraliaDaycelebrations,memberoftheInglewoodPrimarySchool

ParentsAssociation,memberofInglewood&BridgewaterMen’sShedaswellasbeingasocialmemberofthe

InglewoodandBridgewaterRSLandaCentralUmpirefortheLoddonValleyFootballLeague.

Interestinshares:Nil

George Arthur Wyatt

Secretary(Resigned22November2013)

Retired

Extensiveclericalworkinfinancialservicesindustry,managedthetradingenginefortheBendigoStock

Exchange.GeorgehasbeeninvolvedwiththeNewbridgeFloodRecoveryandalsowithlocalsportingclubs.

Secretary,HRandGovernance.


Directorswereinofficeforthisentireyearunlessotherwisestated.

Nodirectorshavematerialinterestsincontractsorproposedcontractswiththecompany.

Company Secretary

ThecompanysecretaryisKimHanlon.Kimwasappointedtothepositionofsecretaryon26November2013.

KimiscurrentlyemployedastheManageroftheInglewoodNeighbourhoodHouse.Previouslyanemployment

ConsultantfortheSalvationArmy,ReceptionistatGirtonGrammarSchoolandInglewoodDistrictHealthService

andOfficeManagerforanearthmovingcontractor.HerqualificationsincludeaDiplomaofBusinessandCertificate

IVinWorkplaceAssessmentandTraining.KimisaMemberofInglewoodsportinggroupsandKorongNewsletter.

In2010shegraduatedfromtheLoddonMurrayCommunityLeadershipProgram.

Principal Activities

TheprincipalactivitiesofthecompanyduringthefinancialyearwerefacilitatingCommunity Bank® services under

managementrightstooperateafranchisedbranchofBendigoandAdelaideBankLimited.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringtheyear.



Operating results

Operationshavecontinuedtoperforminlinewithexpectations.Theprofitofthecompanyforthefinancialyear

after provision for income tax was:

Year ended 30 June 2014$

Year ended 30 June 2013$

13,274 37,989

Operating and Financial Review

Thecompanycontinuestogrowandgenerateprofits–thedriversbeingourhardworkinganddedicatedstaff,our

loyalshareholdersandasupportiveandengagedwidercommunity.

Ourbankhasreturnedaprofiteverymonthsinceourfirstfourmonthsofoperation.Wehavenowreturnedin

excessof$600,000toourlocalcommunityinadditiontoreturningdividendsandfrankingcreditstoshareholders.

Wecurrentlyhaveinexcessofanother$100,000setasideforfurthercommunitygrants.Theboardremains

focusedonbothcontinuingtofinanciallyassistourcommunityandrewardourshareholders.

Webelievethatthewidercommunityisincreasinglyawareoftherewardstobegainedbyplacingtheirbusiness

withourbank.Theboardandourstaffwillcontinuetoreinforcethismessage.

Remuneration report

NodirectorreceivesremunerationforservicesasaCompanyDirectororCommitteeMember.

There are no employees who are directly accountable and have responsibility for the strategic direction and

operationalmanagementoftheentity.

TherearethereforenospecifiedExecutiveswhoseremunerationrequiresdisclosure.

Directors’ shareholdings

Balance at start of the year

Changes during the

year

Balance at end of the year

MaxwellCharlesHiggs 3,001 - 3,001

KennethJohnCanfield 1,001 - 1,001

KimHanlon - - -

DaleThomasJackson 1,001 500 501

AndrewRichardSmith 1,002 1 1,001

SimonPatrickTuohey 2,001 - 2,001

Jill McFarlane 1,500 6,000 7,500

Colleen Condliffe 501 500 1

DavidEdwards - 500 500

LindaYounghusband 500 500

StewartDeanLuckman - - -

GeorgeArthurWyatt(Resigned22November2013) 3,501 500 4,001



Dividends

Year ended 30 June 2014

Cents $

-Dividendspaidintheyear 6 30,325

Significant changes in the state of affairs

Intheopinionofthedirectorstherewerenosignificantchangesinthestateofaffairsofthecompanythat

occurredduringthefinancialyearunderreviewnototherwisedisclosedinthisreportorthefinancialstatements.

Events since the end of the financial year

Therearenomattersorcircumstancesthathavearisensincetheendofthefinancialyearthathavesignificantly

affectedormaysignificantlyaffecttheoperationsofthecompanytheresultsofthoseoperationsorthestateof

affairsofthecompany,infutureyears.

Likely developments

Thecompanywillcontinueitspolicyoffacilitatingbankingservicestothecommunity.

Environmental regulation

Thecompanyisnotsubjecttoanysignificantenvironmentalregulation.

Indemnification and insurance of directors and officers

Thecompanyhasindemnifiedalldirectorsandthemanagerinrespectofliabilitiestootherpersons(otherthan

the company or related body corporate) that may arise from their position as directors or manager of the company

exceptwheretheliabilityarisesoutofconductinvolvingthelackofgoodfaith.

Disclosureofthenatureoftheliabilityandtheamountofthepremiumisprohibitedbytheconfidentialityclauseof

thecontractofinsurance.Thecompanyhasnotprovidedanyinsuranceforanauditorofthecompanyorarelated

bodycorporate.

Directors’ meetings

The number of directors’ meetings attended by each of the directors of the company during the year were:

Board Meetings Attended

Committee Meetings Attended

Audit MarketingHuman

Resources

Eligible Attended Eligible Attended Eligible Attended Eligible Attended

MaxwellCharlesHiggs 12 12 1 1 - - - -

KennethJohnCanfield 12 11 1 1 - - - -

KimHanlon 12 10 1 - - - - -

DaleThomasJackson 12 9 - - - - - -

AndrewRichardSmith 12 8 - - 12 8 - -

SimonPatrickTuohey 12 11 - - - - - -



Board Meetings Attended

Committee Meetings Attended

Audit MarketingHuman

Resources

Eligible Attended Eligible Attended Eligible Attended Eligible Attended

Jill McFarlane 12 9 - - 12 9 - -

Colleen Condliffe 12 12 - - - - 4 4

DavidEdwards 12 11 - - - - 4 4

LindaYounghusband 12 12 - - 12 12 - -

StewartDeanLuckman 12 12 - - 12 12 - -

GeorgeArthurWyatt(Resigned22

November2013)5 5 - - - - - -

Proceedings on behalf of the company

NopersonhasappliedtotheCourtundersection237oftheCorporationsAct2001forleavetobringproceedings

onbehalfofthecompany,ortointerveneinanyproceedingstowhichthecompanyisaparty,forthepurposeof

takingresponsibilityonbehalfofthecompanyforallorpartofthoseproceedings.

NoproceedingshavebeenbroughtorintervenedinonbehalfofthecompanywithleaveoftheCourtundersection

237oftheCorporationsAct2001.

Non audit services

The company may decide to employ the auditor on assignments additional to their statutory duties where the

auditor’sexpertiseandexperiencewiththecompanyareimportant.Detailsoftheamountspaidorpayabletothe

auditor(AndrewFrewinStewart)forauditandnonauditservicesprovidedduringtheyeararesetoutinthenotes

totheaccounts.

Theboardofdirectorshasconsideredtheposition,inaccordancewiththeadvicereceivedfromtheboardandis

satisfiedthattheprovisionofthenon-auditservicesiscompatiblewiththegeneralstandardofindependencefor

auditorsimposedbytheCorporationsAct2001.

Thedirectorsaresatisfiedthattheprovisionofnon-auditservicesbytheauditor,assetoutinthenotesdidnot

compromisetheauditorindependencerequirementsoftheCorporationsAct2001forthefollowingreasons:

• allnon-auditserviceshavebeenreviewedbytheboardtoensuretheydonotimpactontheimpartialityand

objectivity of the auditor

• noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110

CodeofEthicsforProfessionalAccountants,includingreviewingorauditingtheauditor’sownwork,actingin

amanagementoradecision-makingcapacityforthecompany,actingasadvocateforthecompanyorjointly

sharingeconomicriskandrewards.

Directors’ meetings (continued)



Auditor’s independence declaration

Acopyoftheauditor’sindependencedeclarationasrequiredundersection307CoftheCorporationsAct2001is

setoutonpage11.

SignedinaccordancewitharesolutionoftheboardofdirectorsatInglewood,Victoriaon1September2014.

Maxwell Charles Higgs,

Chairman


Auditor’s independence declaration


Financial statementsStatementofComprehensiveIncome for the year ended 30 June 2014

Note 2014 2013 $ $

Revenuefromordinaryactivities 4 819,229 802,740

Employeebenefitsexpense (397,181) (359,639)

Charitabledonations,sponsorship,advertisingandpromotion (181,952) (178,143)

Occupancyandassociatedcosts (28,892) (27,561)

Systemscosts (21,139) (21,415)

Depreciationandamortisationexpense 5 (23,914) (22,544)

Generaladministrationexpenses (147,275) (139,082)

Profit before income tax expense 18,876 54,356

Incometaxexpense 6 (5,602) (16,367)

Profit after income tax expense 13,274 37,989

Total comprehensive income for the year 13,274 37,989

Earnings per share for profit attributable to the ordinary

shareholders of the company: ¢ ¢

Basicearningspershare 19 2.63 7.52

Theaccompanyingnotesformpartofthesefinancialstatements.


Financial statements (continued)

BalanceSheet as at 30 June 2014

Note 2014 2013 $ $

ASSETS

Current Assets

Cashandcashequivalents 7 211,571 220,255

Tradeandotherreceivables 8 39,567 44,009

Currenttaxasset 11 732 -

Total Current Assets 251,870 264,264

Non-Current Assets

Property,plantandequipment 9 91,671 88,656

Intangibleassets 10 152,438 166,302

Total Non-Current Assets 244,109 254,958

Total Assets 495,979 519,222

LIABILITIES

Current Liabilities

Tradeandotherpayables 12 7,188 5,136

Currenttaxliabilities 11 (7,184) 1,140

Total Current Liabilities 4 6,276

Non-Current Liabilities

Deferredtaxliabilities 11 1,580 1,500

Total Non-Current Liabilities 1,580 1,500

Total Liabilities 1,584 7,776

Net Assets 494,395 511,446

Equity

Issuedcapital 13 488,516 488,516

Retainedearnings 14 5,879 22,930

Total Equity 494,395 511,446




StatementofChangesinEquity for the year ended 30 June 2014

Issued Retained Total capital earnings equity $ $ $

Balance at 1 July 2012 488,516 (15,059) 473,457

Total comprehensive income for the year - 37,989 37,989

Transactions with owners in their capacity as owners:

Sharesissuedduringperiod - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - - -

Balance at 30 June 2013 488,516 22,930 511,446

Balance at 1 July 2013 488,516 22,930 511,446

Total comprehensive income for the year - 13,274 13,274

Transactions with owners in their capacity as owners:

Sharesissuedduringperiod - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - (30,325) (30,325)

Balance at 30 June 2014 488,516 5,879 494,395




StatementofCashFlows for the year ended 30 June 2014

Note 2014 2013 $ $

Cash flows from operating activities

Receiptsfromcustomers 862,145 867,471

Paymentstosuppliersandemployees (821,727) (828,314)

Interestreceived 8,134 11,958

Incometaxespaid (13,846) (34,887)

Net cash provided by operating activities 15 34,706 16,228

Cash flows from investing activities

Paymentsforproperty,plantandequipment (13,065) -

Net cash used in investing activities (13,065) -

Cash flows from financing activities

Dividendspaid (30,325) -

Net cash used in financing activities (30,325) -

Net increase/(decrease) in cash held (8,684) 16,228

Cashandcashequivalentsatthebeginningofthefinancialyear 220,255 204,027

Cash and cash equivalents at the end of the financial year 7(a) 211,571 220,255



NotestothefinancialstatementsFor year ended 30 June 2014

Note1.Summaryofsignificantaccountingpolicies

a) Basis of preparation

ThesegeneralpurposefinancialstatementshavebeenpreparedinaccordancewithAustralianAccounting

StandardsandInterpretationsissuedbytheAustralianAccountingStandardBoardsandtheCorporationsAct

2001.Thecompanyisafor-profitentityforthepurposeofpreparingthefinancialstatements.

CompliancewithIFRS

ThesefinancialstatementsandnotescomplywithInternationalFinancialReportingStandards(IFRS)asissuedby

theInternationalAccountingStandardsBoard(IASB).

Critical accounting estimates

Thepreparationofthefinancialstatementsrequirestheuseofcertaincriticalaccountingestimates.Italso

requiresmanagementtoexerciseitsjudgementintheprocessofapplyingthecompany’saccountingpolicies.

Theseareasinvolvingahigherdegreeofjudgementorcomplexities,orareaswhereassumptionsandestimates

aresignificanttothefinancialstatementsaredisclosedinnote3.

Historicalcostconvention

Thefinancialstatementshavebeenpreparedunderthehistoricalcostconventiononanaccrualsbasisas

modifiedbytherevaluationoffinancialassetsandliabilitiesatfairvaluethroughprofitorlossandwherestated,

currentvaluationsofnon-currentassets.Costisbasedonthefairvaluesoftheconsiderationgiveninexchange

forassets.

Comparativefigures

WhererequiredbyAustralianAccountingStandardscomparativefigureshavebeenadjustedtoconformwith

changesinpresentationforthecurrentfinancialyear.

Adoption of new and amended accounting standards

Thecompanyadoptedthefollowingstandardsandamendments,mandatoryforthefirsttimefortheannual

reporting period commencing 1 July 2013:

• AASB2011-4AmendmentstoAustralianAccountingStandardstoRemoveIndividualKeyManagement

PersonnelDisclosureRequirements.

• AASB10ConsolidatedFinancialStatements,AASB11JointArrangements,AASB12DisclosureofInterests

inOtherEntities,AASB128InvestmentsinAssociatesandJointVentures,AASB127SeparateFinancial

StatementsandAASB2011-7AmendmentstoAustralianAccountingStandardsarisingfromtheConsolidation

andJointArrangementsStandards.

• AASB2012-9AmendmenttoAASB1048arisingfromtheWithdrawalofAustralianInterpretation1039.

• AASB2012-10AmendmentstoAustralianAccountingStandards–TransitionGuidanceandotherAmendments

whichprovidesanexemptionfromtherequirementtodisclosetheimpactofthechangeinaccountingpolicyon

thecurrentperiod.

• AASB13FairValueMeasurementandAASB2011-8AmendmentstoAustralianAccountingStandardsarising

fromAASB13.


Notestothefinancialstatements(continued)

Note1.Summaryofsignificantaccountingpolicies(continued)

a) Basis of preparation (continued)

Adoption of new and amended accounting standards (continued)

• AASB119EmployeeBenefits(September2011)andAASB2011-10AmendmentstoAustralianAccounting

StandardsarisingfromAASB119(September2011).

• AASB2012-5AmendmentstoAustralianAccountingStandardsarisingfromAnnualImprovements2009-2011

Cycle.

• AASB2012-2AmendmentstoAustralianAccountingStandards–Disclosures–OffsettingFinancialAssetsand

FinancialLiabilities.

AASB2011-4removestheindividualkeymanagementpersonneldisclosurerequirementsinAASB124Related

PartyDisclosures.Asaresultthecompanynowonlydisclosesthekeymanagementpersonnelcompensationin

totalandforeachofthecategoriesrequiredinAASB124.Detailedkeymanagementpersonnelcompensationis

outlinedintheremunerationreport,includedaspartofthedirectors’report.

TheadoptionofrevisedstandardAASB119hasresultedinachangetotheaccountingforthecompany’sannual

leaveobligations.Astheentitydoesnotexpectallannualleavetobetakenwithin12monthsoftherespective

servicebeingprovided,annualleaveobligationsarenowclassifiedaslong-termemployeebenefitsintheirentirety.

Thischangesthemeasurementoftheseobligations,astheentireobligationisnowmeasuredonadiscounted

basisandnolongersplitintoashort-termandalong-termportion.However,theimpactofthischangeis

consideredimmaterialonthefinancialstatementsoverallasthemajorityoftheannualleaveisstillexpectedtobe

takenwithin12monthsaftertheendofthereportingperiod.

Noneoftheremainingnewstandardsandamendmentstostandardsthataremandatoryforthefirsttimeforthe

financialyearbeginning1July2013affectedanyoftheamountsrecognisedinthecurrentperiodoranyprior

periodandarenotlikelytoaffectfutureperiods.

The company has not elected to apply any pronouncements before their mandatory operative date in the annual

reportingperiodbeginning1July2013.

Economicdependency-BendigoandAdelaideBankLimited

ThecompanyhasenteredintoafranchiseagreementwithBendigoandAdelaideBankLimitedthatgovernsthe

management of the Community Bank® branchatInglewood,Victoria.

ThebranchoperatesasafranchiseofBendigoandAdelaideBankLimited,usingthename“BendigoBank”and

thelogoandsystemofoperationsofBendigoandAdelaideBankLimited.ThecompanymanagestheCommunity

Bank® branchonbehalfofBendigoandAdelaideBankLimited,howeveralltransactionswithcustomersconducted

through the Community Bank® branch are effectively conducted between the customers and Bendigo and Adelaide

BankLimited.

AlldepositsaremadewithBendigoandAdelaideBankLimited,andallpersonalandinvestmentproductsare

productsofBendigoandAdelaideBankLimited,withthecompanyfacilitatingtheprovisionofthoseproducts.All

loans,leasesorhirepurchasetransactions,issuesofnewcreditordebitcards,temporaryorbridgingfinanceand

anyothertransactionthatinvolvescreatinganewdebt,orincreasingorchangingthetermsofanexistingdebt

owedtoBendigoandAdelaideBankLimited,mustbeapprovedbyBendigoandAdelaideBankLimited.Allcredit

transactionsaremadewithBendigoandAdelaideBankLimited,andallcreditproductsareproductsofBendigo

andAdelaideBankLimited.

BendigoandAdelaideBankLimitedprovidessignificantassistanceinestablishingandmaintainingtheCommunity

Bank® branchfranchiseoperations.Italsocontinuestoprovideongoingmanagementandoperationalsupport

andotherassistanceandguidanceinrelationtoallaspectsofthefranchiseoperation,includingadviceinrelation

to:




a) Basis of preparation (continued)

Economicdependency-BendigoandAdelaideBankLimited(continued)

•adviceandassistanceinrelationtothedesign,layoutandfitoutoftheCommunity Bank® branch

•trainingforthebranchmanagerandotheremployeesinbanking,managementsystemsandinterfaceprotocol

•methodsandproceduresforthesaleofproductsandprovisionofservices

•securityandcashlogisticcontrols

•calculationofcompanyrevenueandpaymentofmanyoperatingandadministrativeexpenses

•theformulationandimplementationofadvertisingandpromotionalprograms

•salestechniquesandpropercustomerrelations.

The following is a summary of the material accounting policies adopted by the company in the preparation of the

financialstatements.Theaccountingpolicieshavebeenconsistentlyapplied,unlessotherwisestated.

b) Revenue

Revenueisrecognisedwhentheamountofrevenuecanbereliablymeasured,itisprobablethatfutureeconomic

benefitswillflowtothecompanyandanyspecificcriteriahavebeenmet.Interestandfeerevenueisrecognised

whenearned.Thegainorlossondisposalofproperty,plantandequipmentisrecognisedonanetbasisandis

classifiedasincomeratherthanrevenue.AllrevenueisstatednetoftheamountofGoodsandServicesTax(GST).

Revenuecalculation

ThefranchiseagreementwithBendigoandAdelaideBankLimitedprovidesforthreetypesofrevenueearnedby

thecompany.First,thecompanyisentitledto50%ofthemonthlygrossmarginearnedbyBendigoandAdelaide

BankLimitedonproductsandservicesprovidedthroughthecompanythatareregardedas“daytoday”banking

business(i.e.‘marginbusiness’).Thisarrangementalsomeansthatifthegrossmarginreflectsaloss(thatis,the

grossmarginisanegativeamount),thecompanyeffectivelyincurs,andmustbear,50%ofthatloss.

ThesecondsourceofrevenueiscommissionpaidbyBendigoandAdelaideBankLimitedontheotherproducts

andservicesprovidedthroughthecompany(i.e.‘commissionbusiness’).Thecommissioniscurrentlypayable

onvariousspecifiedproductsandservices,includinginsurance,financialplanning,commonfund,Sandhurst

Select,superannuation,commercialloanreferrals,productsreferredbyRuralBank,leasingreferrals,fixedloans

andcertaintermdeposits(>90days).Theamountofcommissionpayablecanbevariedinaccordancewith

theFranchiseAgreement(which,insomecases,permitscommissionstobevariedatthediscretionofBendigo

andAdelaideBankLimited).Thisdiscretionhasbeenexercisedonseveraloccasionspreviously.Forexamplein

February2011andFebruary2013BendigoandAdelaideBankLimitedreducedcommissionsontwocorebanking

productstoensureamoreevendistributionofincomebetweenBendigoandAdelaideBankLimitedandits

Community Bank® partners.Therevenuesharemodelissubjecttoregularreviewtoensurethattheinterestsof

BendigoandAdelaideBankLimitedandCommunity Bank® companiesremainbalanced.

Thethirdsourceofrevenueisaproportionofthefeesandcharges(i.e.whatarecommonlyreferredtoas‘bank

feesandcharges’)chargedtocustomers.Thisproportion,determinedbyBendigoandAdelaideBankLimited,may

varybetweenproductsandservicesandmaybeamendedbyBendigoandAdelaideBankLimitedfromtimeto

time.




c) Income tax

Current tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the

taxableprofitorlossfortheperiod.Itiscalculatedusingtaxratesandtaxlawsthathavebeenenactedor

substantivelyenactedbyreportingdate.Currenttaxforcurrentandpriorperiodsisrecognisedasaliability(or

asset)totheextentthatitisunpaid(orrefundable).

Deferred tax

Deferred tax is accounted for using the balance sheet liability method on temporary differences arising from

differencesbetweenthecarryingamountofassetsandliabilitiesinthefinancialstatementsandthecorresponding

taxbaseofthoseitems.

Inprinciple,deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences.Deferredtaxassets

arerecognisedtotheextentthatitisprobablethatsufficienttaxableamountswillbeavailableagainstwhich

deductibletemporarydifferencesorunusedtaxlossesandtaxoffsetscanbeutilised.However,deferredtax

assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial

recognition of assets and liabilities (other than as a result of a business combination) which affects neither

taxableincomenoraccountingprofit.Furthermore,adeferredtaxliabilityisnotrecognisedinrelationtotaxable

temporarydifferencesarisingfromgoodwill.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when

theassetandliabilitygivingrisetothemarerealisedorsettled,basedontaxrates(andtaxlaws)thathavebeen

enactedorsubstantivelyenactedbyreportingdate.Themeasurementofdeferredtaxliabilitiesreflectsthetax

consequencesthatwouldfollowfromthemannerinwhichtheconsolidatedentityexpects,atthereportingdate,to

recoverorsettlethecarryingamountofitsassetsandliabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax and

when the balances relate to taxes levied by the same taxation authority and the company entity intends to settle

itstaxassetsandliabilitiesonanetbasis.

Current and deferred tax for the period

Currentanddeferredtaxisrecognisedasanexpenseorincomeinthestatementofcomprehensiveincome,

exceptwhenitrelatestoitemscreditedordebitedtoequity,inwhichcasethedeferredtaxisalsorecognised

directlyinequity,orwhereitarisesfrominitialaccountingforabusinesscombination,inwhichcaseitistakeninto

accountinthedeterminationofgoodwillorexcess.

d) Employee entitlements

Provisionismadeforthecompany’sliabilityforemployeebenefitsarisingfromservicesrenderedbyemployees

tobalancedate.Employeebenefitsthatareexpectedtobesettledwithinoneyearhavebeenmeasuredatthe

amountsexpectedtobepaidwhentheliabilityissettled,plusrelatedon-costs.Employeebenefitspayablelater

thanoneyearhavebeenmeasuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadefor

thosebenefits.

Thecompanycontributestoadefinedcontributionplan.Contributionstoemployeesuperannuationfundsare

chargedagainstincomeasincurred.




e) Cash and cash equivalents

Forthepurposesofthestatementofcashflows,cashincludescashonhandandinbanksandinvestmentsin

moneymarketinstruments,netofoutstandingbankoverdrafts.Bankoverdraftsareshownwithinborrowingsin

currentliabilitiesonthebalancesheet.

f) Trade receivables and payables

Receivablesarecarriedattheiramountsdue.Thecollectabilityofdebtsisassessedatbalancedateandspecific

provisionismadeforanydoubtfulaccounts.Liabilitiesfortradecreditorsandotheramountsarecarriedatcost

thatisthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived,whetherornot

billedtothecompany.

g) Property, plant and equipment

Plantandequipment,leaseholdimprovementsandequipmentunderfinanceleasearestatedatcostless

accumulateddepreciationandimpairment.Costincludesexpenditurethatisdirectlyattributabletotheacquisition

oftheitem.Intheeventthatsettlementofallorpartofthepurchaseconsiderationisdeferred,costisdetermined

bydiscountingtheamountspayableinthefuturetotheirpresentvalueasatthedateofacquisition.

Depreciationisprovidedonproperty,plantandequipment,includingfreeholdbuildingsbutexcludingland.

Depreciation is calculated on a straight line basis so as to write off the net cost of each asset over its expected

usefullifetoitsestimatedresidualvalue.Leaseholdimprovementsaredepreciatedattherateequivalentto

theavailablebuildingallowanceusingthestraightlinemethod.Theestimatedusefullives,residualvaluesand

depreciationmethodarereviewedattheendofeachannualreportingperiod.

The following estimated useful lives are used in the calculation of depreciation:

-leaseholdimprovements 40 years

-plantandequipment 2.5-40 years

-furnitureandfittings 4-40 years

h) Intangibles

ThefranchisefeepaidtoBendigoandAdelaideBankLimitedhasbeenrecordedatcostandisamortisedona

straightlinebasisoverthelifeofthefranchiseagreement.

TherenewalprocessingfeepaidtoBendigoandAdelaideBankLimitedwhenrenewingthefranchiseagreement

hasalsobeenrecordedatcostandisamortisedonastraightlinebasisoverthelifeofthefranchiseagreement.

i) Payment terms

Receivablesandpayablesarenoninterestbearingandgenerallyhavepaymenttermsofbetween30and90days.

j) Borrowings

Allloansareinitiallymeasuredattheprincipalamount.Interestisrecognisedasanexpenseasitaccrues.




k) Financial instruments

Recognitionandinitialmeasurement

Financialinstruments,incorporatingfinancialassetsandfinancialliabilitiesarerecognisedwhentheentity

becomesapartytothecontractualprovisionsoftheinstrument.

Financialinstrumentsareinitiallymeasuredatfairvalueplustransactioncosts.Financialinstrumentsare

classifiedandmeasuredassetoutbelow.

Derecognition

Financialassetsarederecognisedwherethecontractualrightstoreceiptofcashflowsexpiresortheassetis

transferredtoanotherpartywherebytheentitynolongerhasanysignificantcontinuinginvolvementintherisks

andbenefitsassociatedwiththeasset.

Classificationandsubsequentmeasurement

(i) Loansandreceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenot

quotedinanactivemarketandaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestrate

method.

(ii) Held-to-maturityinvestments

Held-to-maturityinvestmentsarenon-derivativefinancialassetsthathavefixedmaturitiesandfixedor

determinablepayments,anditistheentity’sintentiontoholdtheseinvestmentstomaturity.Theyare

subsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.

(iii)Available-for-salefinancialassets

Available-for-salefinancialassetsarenon-derivativefinancialassetsthatareeithernotsuitabletobeclassified

intoothercategoriesoffinancialassetsduetotheirnature,ortheyaredesignatedassuchbymanagement.

Theycompriseinvestmentsintheequityofotherentitieswherethereisneitherafixedmaturitynorfixedor

determinablepayments.

Theyaresubsequentlymeasuredatfairvaluewithchangesinsuchfairvalue(i.e.gainsorlosses)recognised

intheStatementofComprehensiveIncome.Available-for-salefinancialassetsareincludedinnon-current

assetsexceptwherethatareexpectedtobesoldwithin12monthsaftertheendofthereportingperiod.All

otherfinancialassetsareclassifiedascurrentassets.

(iv) Financial liabilities

Non-derivativefinancialliabilities(excludingfinancialguarantees)aresubsequentlymeasuredatamortisedcost

usingtheeffectiveinterestratemethod.

Impairment

Ateachreportingdate,theentityassesseswhetherthereisobjectiveevidencethatafinancialinstrumenthas

beenimpaired.Impairmentlossesarerecognisedinthestatementofcomprehensiveincome.




l) Leases

Leasesoffixedassetswheresubstantiallyalltherisksandbenefitsincidentaltotheownershipoftheasset,

butnotthelegalownershiparetransferredtothecompanyareclassifiedasfinanceleases.Financeleasesare

capitalisedbyrecordinganassetandaliabilityattheloweroftheamountsequaltothefairvalueoftheleased

propertyorthepresentvalueoftheminimumleasepayments,includinganyguaranteedresidualvalues.Lease

paymentsareallocatedbetweenthereductionoftheleaseliabilityandtheleaseinterestexpensefortheperiod.

Leasedassetsaredepreciatedonastraight-linebasisovertheshorteroftheirestimatedusefullivesorthelease

term.Leasepaymentsforoperatingleases,wheresubstantiallyalltherisksandbenefitsremainwiththelessor,

arechargedasexpensesintheperiodsinwhichtheyareincurred.Leaseincentivesunderoperatingleasesare

recognisedasaliabilityandamortisedonastraight-linebasisoverthelifeoftheleaseterm.

m) Provisions

Provisionsarerecognisedwhentheeconomicentityhasalegal,equitableorconstructiveobligationtomakea

futuresacrificeofeconomicbenefitstootherentitiesasaresultofpasttransactionsofotherpastevents,itis

probablethatafuturesacrificeofeconomicbenefitswillberequiredandareliableestimatecanbemadeofthe

amountoftheobligation.

Aprovisionfordividendsisnotrecognisedasaliabilityunlessthedividendsaredeclared,determinedorpublicly

recommendedonorbeforethereportingdate.

n) Contributed equity

Ordinarysharesarerecognisedatthefairvalueoftheconsiderationreceivedbythecompany.Anytransaction

costsarisingontheissueofordinarysharesarerecogniseddirectlyinequityasareductionoftheshareproceeds

received.

o) Earnings per share

Basicearningspershareiscalculatedbydividingtheprofitattributabletoequityholdersofthecompany,excluding

anycostsofservicingequityotherthanordinaryshares,bytheweightedaveragenumberofordinaryshares

outstandingduringthefinancialyear,adjustedforbonuselementsinordinarysharesissuedduringtheyear.

p) Goods and Services Tax

Revenues,expensesandassetsarerecognisednetoftheamountofGoodsandServicesTax(GST),exceptwhere

theamountofGSTincurredisnotrecoverablefromthetaxationauthority.Inthesecircumstances,theGSTis

recognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.

ReceivablesandpayablesarestatedwiththeamountofGSTincluded.ThenetamountofGSTrecoverablefrom,

orpayableto,thetaxationauthorityisincludedaspartofreceivablesorpayablesinthebalancesheet.Cashflows

areincludedinthestatementofcashflowsonagrossbasis.

TheGSTcomponentsofcashflowsarisingfrominvestingandfinancingactivitieswhicharerecoverablefrom,or

payableto,thetaxationauthorityareclassifiedasoperatingcashflows.



Note2.FinancialriskmanagementThecompany’sactivitiesexposeittoalimitedvarietyoffinancialrisks:marketrisk(includingcurrencyrisk,fair

valueinterestriskandpricerisk),creditrisk,liquidityriskandcashflowinterestraterisk.Thecompany’soverall

riskmanagementprogramfocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotential

adverseeffectsonthefinancialperformanceoftheentity.Theentitydoesnotusederivativeinstruments.

Riskmanagementiscarriedoutdirectlybytheboardofdirectors.

(i) Marketrisk

ThecompanyhasnoexposuretoanytransactionsdenominatedinacurrencyotherthanAustraliandollars.

(ii) Pricerisk

Thecompanyisnotexposedtoequitysecuritiespriceriskasitdoesnotholdinvestmentsforsaleoratfair

value.Thecompanyisnotexposedtocommoditypricerisk.

(iii)Creditrisk

Thecompanyhasnosignificantconcentrationsofcreditrisk.Ithaspoliciesinplacetoensurethatcustomers

haveanappropriatecredithistory.Thecompany’sfranchiseagreementlimitsthecompany’screditexposureto

onefinancialinstitution,beingBendigoandAdelaideBankLimited.

(iv)Liquidityrisk

Prudentliquiditymanagementimpliesmaintainingsufficientcashandmarketablesecuritiesandtheavailability

offundingfromcreditfacilities.ThecompanybelievesthatitssoundrelationshipwithBendigoandAdelaide

BankLimitedmitigatesthisrisksignificantly.

(v) Cashflowandfairvalueinterestraterisk

Interest-bearingassetsareheldwithBendigoandAdelaideBankLimitedandsubjecttomovementsinmarket

interest.Interest-rateriskcouldalsoarisefromlong-termborrowings.Borrowingsissuedatvariablerates

exposethecompanytocashflowinterest-raterisk.Thecompanybelievesthatitssoundrelationshipwith

BendigoandAdelaideBankLimitedmitigatesthisrisksignificantly.

(vi) Capital management

Theboard’spolicyistomaintainastrongcapitalbasesoastosustainfuturedevelopmentofthecompany.

Theboardofdirectorsmonitorthereturnoncapitalandthelevelofdividendstoshareholders.Capitalis

representedbytotalequityasrecordedinthebalancesheet.

Inaccordancewiththefranchiseagreement,inany12monthperiod,thefundsdistributedtoshareholders

shall not exceed the distribution limit:

The distribution limit is the greater of:

(a)20%oftheprofitorfundsofthefranchiseeotherwiseavailablefordistributiontoshareholdersinthat12

month period; and

(b) subjecttotheavailabilityofdistributableprofits,therelevantrateofreturnmultipliedbytheaveragelevelof

sharecapitalofthefranchiseeoverthat12monthperiodwheretherelevantrateofreturnisequaltothe

weightedaverageinterestrateon90daybankbillsoverthat12monthperiodplus5%.

Theboardismanagingthegrowthofthebusinessinlinewiththisrequirement.Therearenootherexternally

imposedcapitalrequirements,althoughthenatureofthecompanyissuchthatamountswillbepaidinthe

formofcharitabledonationsandsponsorship.Charitabledonationsandsponsorshippaidfortheyearended

30June2014canbeseeninthestatementofcomprehensiveincome.

Therewerenochangesinthecompany’sapproachtocapitalmanagementduringtheyear.



Note3.CriticalaccountingestimatesandjudgementsEstimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,

includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheentityandthatarebelievedtobe

reasonableunderthecircumstances.

Thecompanymakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,by

definition,seldomequaltherelatedactualresults.

Managementhasidentifiedthefollowingcriticalaccountingpoliciesforwhichsignificantjudgements,estimates

andassumptionsaremade.Actualresultsmaydifferfromtheseestimatesunderdifferentassumptionsand

conditionsandmaymateriallyaffectfinancialresultsorthefinancialpositionreportedinfutureperiods.

Further details of the nature of these assumptions and conditions may be found in the relevant notes to the

financialstatements.

Taxation

Judgementisrequiredinassessingwhetherdeferredtaxassetsandcertaintaxliabilitiesarerecognisedon

thebalancesheet.Deferredtaxassets,includingthosearisingfromun-recoupedtaxlosses,capitallossesand

temporarydifferences,arerecognisedonlywhereitisconsideredmorelikelythannotthattheywillberecovered,

whichisdependentonthegenerationofsufficientfuturetaxableprofits.

Assumptionsaboutthegenerationoffuturetaxableprofitsdependonmanagement’sestimatesoffuturecash

flows.Thesedependonestimatesoffuturesalesvolumes,operatingcosts,capitalexpenditure,dividendsand

othercapitalmanagementtransactions.Judgementsarealsorequiredabouttheapplicationofincometax

legislation.

Thesejudgementsandassumptionsaresubjecttoriskanduncertainty.Thereisthereforeapossibilitythat

changesincircumstanceswillalterexpectations,whichmayimpacttheamountofdeferredtaxassetsand

deferred tax liabilities recognised on the balance sheet and the amount of other tax losses and temporary

differencesnotyetrecognised.Insuchcircumstances,someorallofthecarryingamountofrecogniseddeferred

taxassetsandliabilitiesmayrequireadjustment,resultingincorrespondingcreditorchargetothestatementof

comprehensiveincome.

Estimationofusefullivesofassets

The estimation of the useful lives of assets has been based on historical experience and the condition of the

assetisassessedatleastonceperyearandconsideredagainsttheremainingusefullife.Adjustmentstouseful

livesaremadewhenconsiderednecessary.

Goodwill

Goodwillrepresentstheexcessofthecostofanacquisitionoverthefairvalueofthecompany’sshareofthenet

identifiableassetsoftheacquiredbranch/agencyatthedateofacquisition.Goodwillonacquisitionisincludedin

intangibleassets.Goodwillisnotamortised.Instead,goodwillistestedforimpairmentannually,ormorefrequently

if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated

impairmentlosses.

Thecalculationsrequiretheuseofassumptions.



Note3.Criticalaccountingestimatesandjudgements(continued)

Impairment of assets

Ateachreportingdate,thecompanyreviewsthecarryingamountsofitstangibleandintangibleassetsthathave

anindefiniteusefullifetodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairment

loss.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodeterminethe

extentoftheimpairmentloss(ifany).Wheretheassetdoesnotgeneratecashflowsthatareindependentfrom

otherassets,theconsolidatedentityestimatestherecoverableamountofthecash-generatingunittowhichthe

assetbelongs.

Recoverableamountisthehigheroffairvaluelesscoststosellandvalueinuse.Inassessingvalueinuse,the

estimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrent

marketassessmentsofthetimevalueofmoneyandtherisksspecifictotheassetforwhichtheestimatesof

futurecashflowshavenotbeenadjusted.

Iftherecoverableamountofanasset(orcash-generatingunit)isestimatedtobelessthanitscarryingamount,

thecarryingamountoftheasset(cash-generatingunit)isreducedtoitsrecoverableamount.Animpairmentloss

isrecognisedinprofitorlossimmediately,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethe

impairmentlossistreatedasarevaluationdecrease.

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(cash-generatingunit)is

increasedtotherevisedestimateofitsrecoverableamount,butonlytotheextentthattheincreasedcarrying

amount does not exceed the carrying amount that would have been determined had no impairment loss been

recognisedfortheasset(cash-generatingunit)inprioryears.Areversalofanimpairmentlossisrecognised

inprofitorlossimmediately,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethereversalofthe

impairmentlossistreatedasarevaluationincrease.

2014 2013 $ $

Note4.RevenuefromordinaryactivitiesOperating activities:

-servicescommissions 811,139 790,928

Total revenue from operating activities 811,139 790,928

Non-operatingactivities:

-interestreceived 8,090 11,812

Total revenue from non-operating activities 8,090 11,812

Total revenues from ordinary activities 819,229 802,740



Note5.ExpensesDepreciationofnon-currentassets:

-plantandequipment 3,006 2,102

-leaseholdimprovements 7,043 6,577

Amortisationofnon-currentassets:

-franchiseagreement 2,311 2,311

-franchiserenewalfee 11,554 11,554

23,914 22,544

Bad debts 1,841 162

Note6.IncometaxexpenseThe components of tax expense comprise:

-Currenttax 5,583 16,591

-Movementindeferredtax 80 (224)

-Overprovisionoftaxinthepriorperiod (61)

5,602 16,367

Theprimafacietaxonprofitfromordinaryactivitiesbeforeincome

tax is reconciled to the income tax expense as follows:

Operatingprofit 18,876 54,356

Primafacietaxonprofitfromordinaryactivitiesat30% 5,663 16,367

Add tax effect of:

-timingdifferenceexpenses (80) 224

5,583 16,591

Movementindeferredtax 11 80 (224)

Overprovisionofincometaxintheprioryear (61) -

5,602 16,367

Note7.CashandcashequivalentsCashatbankandonhand 11,571 20,255

Termdeposits 200,000 200,000

211,571 220,255

Note 2014 2013 $ $



Note7.Cashandcashequivalents(continued)

Note 7.(a) Reconciliation to cash flow statement

Theabovefiguresreconciletotheamountofcashshowninthestatementof

cashflowsattheendofthefinancialyearasfollows:

Cashatbankandonhand 11,571 20,255

Termdeposits 200,000 200,000

211,571 220,255

Note8.TradeandotherreceivablesTradereceivables 34,302 39,009

Otherreceivablesandaccruals 94 138

Prepayments 5,171 4,862

39,567 44,009

Note9.Property,plantandequipmentPlant and equipment

Atcost 29,487 27,787

Lessaccumulateddepreciation (24,017) (22,339)

5,470 5,448

Leasehold improvements

Atcost 134,129 134,129

Lessaccumulateddepreciation (56,638) (50,921)

77,491 83,208

Motor Vehicle

Atcost 11,364 -

Lessaccumulateddepreciation (2,654) -

8,710 -

Total written down amount 91,671 88,656

2014 2013 $ $



Note9.Property,plantandequipment(continued)

Movements in carrying amounts:

Plant and equipment

Carryingamountatbeginning 5,448 7,550

Additions 1,700 -

Disposals - -

Less:depreciationexpense (1,678) (2,102)

Carrying amount at end 5,470 5,448

Leasehold improvements

Carryingamountatbeginning 83,208 89,785

Additions - -

Disposals - -

Less:depreciationexpense (5,717) (6,577)

Carrying amount at end 77,491 83,208

Motor Vehicle

Carryingamountatbeginning - -

Additions 11,364 -

Disposals - -

Less:depreciationexpense (2,654) -

Carrying amount at end 8,710 -


Note10.IntangibleassetsFranchise fee

Atcost 21,554 21,554

Less:accumulatedamortisation (14,814) (12,503)

6,740 9,051

Renewal processing fee

Atcost 57,768 57,768

Less:accumulatedamortisation (24,070) (12,517)

33,698 45,251

2014 2013 $ $



Note10.Intangibleassets(continued)

Goodwill on Purchase of Agency Business

Atcost 112,000 112,000

112,000 112,000


Note11.TaxCurrent:

Income tax payable/(refundable) (732) 1,140

Non-Current:

Deferred tax liability

-accruals 29 41

-deductibleprepayments 1,551 1,459

1,580 1,500

Net deferred tax liability 1,580 1,500

Movement in deferred tax charged to statement of comprehensive income (80) 224

Note12.TradeandotherpayablesTradecreditors 3,638 1,100

Othercreditorsandaccruals 3,550 4,036

7,188 5,136

Note13.Contributedequity505,412ordinarysharesfullypaid(2013:505,412) 505,412 505,412

Less:equityraisingexpenses (16,896) (16,896)

488,516 488,516

2014 2013 $ $



Note13.Contributedequity(continued)

Rightsattachedtoshares

(a)Votingrights

Subjecttosomelimitedexceptions,eachmemberhastherighttovoteatageneralmeeting.

Onashowofhandsorapoll,eachmemberattendingthemeeting(whethertheyareattendingthemeeting

inpersonorbyattorney,corporaterepresentativeorproxy)hasonevote,regardlessofthenumberofshares

held.However,whereapersonattendsameetinginpersonandisentitledtovoteinmorethanonecapacity

(forexample,thepersonisamemberandhasalsobeenappointedasproxyforanothermember)thatperson

mayonlyexerciseonevoteonashowofhands.Onapoll,thatpersonmayexerciseonevoteasamemberand

onevoteforeachothermemberthatpersonrepresentsasdulyappointedattorney,corporaterepresentativeor

proxy.

Thepurposeofgivingeachmemberonlyonevote,regardlessofthenumberofsharesheld,istoreflectthe

natureofthecompanyasacommunitybasedcompany,byprovidingthatallmembersofthecommunitywho

have contributed to the establishment and ongoing operation of the Community Bank® branch have the same

abilitytoinfluencetheoperationofthecompany.

(b) Dividends

Generally,dividendsarepayabletomembersinproportiontotheamountofthesharecapitalpaiduponthe

sharesheldbythem,subjecttoanyspecialrightsandrestrictionsforthetimebeingattachingtoshares.The

franchiseagreementwithBendigoandAdelaideBankLimitedcontainsalimitonthelevelofprofitsorfunds

thatmaybedistributedtoshareholders.Thereisalsoarestrictiononthepaymentofdividendstocertain

shareholdersiftheyhaveaprohibitedshareholdinginterest(seebelow).

(c) Transfer

Generally,ordinarysharesarefreelytransferable.However,thedirectorshaveadiscretiontorefusetoregister

atransferofshares.

Subjecttotheforegoing,shareholdersmaytransfersharesbyapropertransfereffectedinaccordancewiththe

company’sconstitutionandtheCorporationsAct2001.

Prohibitedshareholdinginterest

Apersonmustnothaveaprohibitedshareholdinginterestinthecompany.

Insummary,apersonhasaprohibitedshareholdinginterestifanyofthefollowingapplies:

• Theycontrolorown10%ormoreofthesharesinthecompany(the“10%limit”).

• Intheopinionoftheboardtheydonothaveacloseconnectiontothecommunityorcommunitiesinwhichthe

companypredominantlycarriesonbusiness(the“closeconnectiontest”).

• Wherethepersonisashareholder,afterthetransferofsharesinthecompanytothatpersonthenumberof

shareholdersinthecompanyis(orwouldbe)lowerthanthebasenumber(the“basenumbertest”).Thebase

numberis298.Asatthedateofthisreport,thecompanyhad325shareholders.

Aswithvotingrights,thepurposeofthisprohibitedshareholdingprovisionistoreflectthecommunity-basednature

ofthecompany.

Whereapersonhasaprohibitedshareholdinginterest,thevotinganddividendrightsattachingtothesharesin

whichtheperson(andhisorherassociates)haveaprohibitedshareholdinginterest,aresuspended.



Note13.Contributedequity(continued)

Prohibitedshareholdinginterest(continued)

Theboardhasthepowertorequestinformationfromapersonwhohas(orissuspectedbytheboardofhaving)

alegalorbeneficialinterestinanysharesinthecompanyoranyvotingpowerinthecompany,forthepurposeof

determiningwhetherapersonhasaprohibitedshareholdinginterest.Iftheboardbecomesawarethatamember

hasaprohibitedshareholdinginterest,itmustserveanoticerequiringthemember(orthemember’sassociate)to

disposeofthenumberofsharestheboardconsidersnecessarytoremedythebreach.Ifapersonfailstocomply

withsuchanoticewithinaspecifiedperiod(thatmustbebetweenthreeandsixmonths),theboardisauthorised

tosellthespecifiedsharesonbehalfofthatperson.Theholderwillbeentitledtotheconsiderationfromthesale

oftheshares,lessanyexpensesincurredbytheboardinsellingorotherwisedealingwiththoseshares.

TheNationalStockExchange(NSX)hasadvisedthatinitsviewtheprohibitedshareholdingprovisionsare

appropriateandequitablebutthe‘basenumbertest’isnot,asaresultthebasenumberclausedoesnotoperate

whilstthecompanyremainslistedontheNSX.

Intheconstitution,membersacknowledgeandrecognisethattheexerciseofthepowersgiventotheboardmay

causeconsiderabledisadvantagetoindividualmembers,butthatsucharesultmaybenecessarytoenforcethe

prohibition.

2014 2013 $ $

Note14.RetainedearningsBalanceatthebeginningofthefinancialyear 22,930 (15,059)

Netprofitfromordinaryactivitiesafterincometax 13,274 37,989

Dividendspaidorprovidedfor (30,325) -

Balance at the end of the financial year 5,879 22,930

Note15.StatementofcashflowsReconciliationofprofitfromordinaryactivitiesaftertaxtonetcashprovided

by operating activities

Profitfromordinaryactivitiesafterincometax 13,274 37,989

Noncashitems:

-depreciation 10,049 8,679

-amortisation 13,865 13,865

Changes in assets and liabilities:

-decreaseinreceivables 3,710 2,704

-(increase)/decreaseinotherassets 80 (224)

-increaseinpayables 2,052 1,836

-decreaseinprovisions - (30,325)

-decreaseincurrenttaxliabilities (8,324) (18,296)

Net cash flows provided by operating activities 34,706 16,228



Note16.LeasesOperating lease commitments

Non-cancellableoperatingleasescontractedforbutnotcapitalisedinthe

financialstatements

Payable-minimumleasepayments:

-notlaterthan12months 12,000 12,000

-between12monthsand5years 35,000 35,000

-5yearsplus - -

47,000 47,000

ThepropertyleaseislinkedtotheCompany’sFranchiseAgreementwithBendigo&AdelaideBankLimited,the

Franchiserenewalwason1June2012withtwo,5yearextensionoptionsavailable.Asatreportingdatethenew

leaseagreementhadnotbeenfinalisedandisinthehandsoflegalrepresentatives.Thereisnoindicationto

suggestitwillnotberenewed.

2014 2013 $ $

Note17.Auditor’sremunerationAmounts received or due and receivable by the auditor of the company for:

-auditandreviewservices 4,950 4,900

-shareregistryservices 2,719 3,998

-nonauditservices 2,447 1,130

10,116 10,028

Note18.Dividendspaidorprovideda. Dividends paid during the year

Current year dividend

100% (2013: 100%) franked dividend - 6 cents (2013: 6 cents) per share 30,325 -

2014 2013 $ $



Note18.Dividendspaidorprovided(continued)

b. Franking account balance

Frankingcreditsavailableforsubsequentreportingperiodsare:

- frankingaccountbalanceasattheendofthefinancialyear 31,714 30,803

- frankingcreditsthatwillarisefrompaymentofincometaxpayable

asattheendofthefinancialyear (7,184) (1,140)

- frankingdebitsthatwillarisefromthepaymentofdividendsrecognised

asaliabilityattheendofthefinancialyear - -

Franking credits available for future financial reporting periods: 24,530 29,663

Net franking credits available 24,530 29,663

Note19.Earningspershare

2014 $

2013 $

(a) Profitattributabletotheordinaryequityholdersofthecompanyused

in calculating earnings per share13,274 37,989

Number Number

(b) Weightedaveragenumberofordinarysharesusedasthedenominator

in calculating basic earnings per share505,412 505,412

Note20.EventsoccurringafterthereportingdateInglewood & Districts Board of Directors have decided that it would be in the companies best interests to

delistitselffromtheNationalStockExchange(NSX).Theboardhasputforwardamotiontobepassedbythe

shareholdersofthecompanyattheAnnualGeneralMeetingonthe28thofOctober2014.Inglewood&Districts

areawareifthemotioniscarriedthereisanexpectedwaitofthreemonthsbeforetheprocessisfinalised.

Note21.ContingentliabilitiesandcontingentassetsTherewerenocontingentliabilitiesorcontingentassetsatthedateofthisreporttoaffectthefinancial

statements.

Note22.SegmentreportingThe economic entity operates in the service sector where it facilitates Community Bank® services in Inglewood

andthesurroundingdistricts,VictoriapursuanttoafranchiseagreementwithBendigoandAdelaideBankLimited.

2014 2013 $ $



Note23.Registeredoffice/PrincipalplaceofbusinessTheentityisacompanylimitedbyshares,incorporatedanddomiciledinAustralia.Theregisteredofficeand

principal place of business is:

Registered Office Principal Place of Business

64BrookeStreet

InglewoodVIC3517

64BrookeStreet

InglewoodVIC3517

Note24.Financialinstruments

Financial Instrument Composition and Maturity Analysis

Thetablebelowreflectstheundiscountedcontractualsettlementtermsforallfinancialinstruments,aswellasthe

settlementperiodforinstrumentswithafixedperiodofmaturityandinterestrate.

Financial instrument

Floating interestFixed interest rate maturing in Non interest

bearingWeighted average1 year or less Over 1 to 5 years Over 5 years

2014$

2013$

2014$

2013$

2014$

2013$

2014$

2013$

2014$

2013$

2014%

2013%

Financial assets

Cash and cash equivalents

11,471 20,155 200,000 200,000 - - - - 100 100 3.10 4.27

Receivables - - - - - - - - 39,265 40,009 N/A N/A

Financial liabilities

Payables - - - - - - - - 3,337 1,100 N/A N/A

NetFairValues

Thenetfairvaluesoffinancialassetsandliabilitiesapproximatethecarryingvaluesasdisclosedinthebalance

sheet.Thecompanydoesnothaveanyunrecognisedfinancialinstrumentsattheyearend.

CreditRisk

Themaximumexposuretocreditriskatbalancedatetorecognisedfinancialassetsisthecarryingamountof

thoseassetsasdisclosedinthebalancesheetandnotestothefinancialstatements.

Therearenomaterialcreditriskexposurestoanysingledebtororgroupofdebtorsunderfinancialinstruments

enteredintobytheeconomicentity.

InterestRateRisk

Interestrateriskreferstotheriskthatthevalueofafinancialinstrumentorcashflowsassociatedwiththe

instrumentwillfluctuateduetochangesinmarketinterestrates.Interestrateriskarisesfromtheinterestbearing

financialassetsandliabilitiesinplacesubjecttovariableinterestrates,asoutlinedabove.



Note24.Financialinstruments (continued)

SensitivityAnalysis

Thecompanyhasperformedsensitivityanalysisrelatingtoitsexposuretointerestrateriskatbalancedate.

Thissensitivityanalysisdemonstratestheeffectonthecurrentyearresultsandequitywhichcouldresultfroma

changeininterestrates.

Asat30June2014,theeffectonprofitandequityasaresultofchangesininterestrate,withallothervariables

remaining constant would be as follows:

2014 $

2013 $

Changeinprofit/(loss)

Increaseininterestrateby1% 115 202

Decreaseininterestrateby1% 115 202

Changeinequity

Increaseininterestrateby1% 115 202

Decreaseininterestrateby1% 115 202


Directors’ declarationInaccordancewitharesolutionofthedirectorsofInglewood&DistrictsCommunityEnterprisesLimited,westate

that:

In the opinion of the directors:

(a) thefinancialstatementsandnotesofthecompanyareinaccordancewiththeCorporationsAct2001,

including:

(i) givingatrueandfairviewofthecompany’sfinancialpositionasat30June2014andofitsperformance

forthefinancialyearendedonthatdate;and

(ii) complyingwithAccountingStandards,theCorporationsRegulations2001andothermandatoryprofessional

reportingrequirements;and

(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they

becomedueandpayable.

(c) the audited remuneration disclosures set out in the remuneration report section of the directors’ report comply

withAccountingStandardAASB124RelatedPartyDisclosuresandtheCorporationsRegulations2001.

Thisdeclarationismadeinaccordancewitharesolutionoftheboardofdirectors.

Maxwell Charles Higgs,

Chairman

Signedonthe25thofAugust2014.


Independent audit report


Independent audit report (continued)


Inglewood&DistrictsCommunityEnterprisesLimitedisapubliccompanyincorporatedinAustraliaandlistedon

theNationalStockExchangeofAustralia(NSX).

Shareholding

Thefollowingtableshowsthenumberofshareholders,brokenintovariouscategoriesshowingthetotalnumberof

sharesheld.

Number of shares heldNumber of

shareholdersNumber ofshares held

1to1,000 229 145510

1,001to5,000 90 299402

5,001to10,000 6 60500

10,001to100,000 0 0

100,001andover 0 0

Total shareholders 325 505,412

Equity securities

Eachoftheaboveshareholdersareentitledto1vote,irrespectiveofthenumberofsharesheld.

Therearenosubstantialshareholders(holdingmorethan5%ofvotingrights)aseachshareholderisentitledto1

vote.Normallyholdingmorethan5%oftotalissuedshareswouldcreateasubstantialshareholder,butthisisnot

applicableduetothevotingrestrictionsforthecompany.

Thereare27shareholdersholdinglessthanamarketableparcelofshares($500invalue).

Therearenorestrictedsecuritiesonissue.

Allsharesonissueareordinarysharesfullypaidto$1pershare.Therearenounquotedequitysecurities.

Largest shareholders

Thefollowingtableshowsthelargestshareholdersincludingequalholdings.

ShareholderNumber of fully

paid shares heldPercentage of issued capital

BarryRobertParker 15000 2.97

MrsHeatherDenyseAppleby 12000 2.37

FpNevins&CoPtyLtd 10000 1.98

MichaelBrianFitzgerald 10000 1.98

NorthernSuburbsSecretarialServicesP/L<JuletonA/C> 7500 1.48

InglewoodAndDistrictsHealthServiceInc 6000 1.19

MrGarryIanAppleby 5000 0.99

MrNeilAlexanderAppleby 5000 0.99

MrKennethGordonAppleby 5000 0.99

MrArnoldEvertLook 5000 0.99

NSXreport


Security register

Thesecurityregister(shareregister)iskeptat:

61-65BullStreet

BendigoVIC3550

Phone:(03)54430344

Company Secretary

KimHanlonhasbeentheCompanySecretaryofInglewood&DistrictsCommunityEnterprisesLimitedsince

November2013.Kim’squalificationsandexperienceincludeextensiveexperienceinofficeadministration,

bookkeepingandaDiplomaofBusinessManagement.

Corporate governance

Thecompanyhasimplementedvariouscorporategovernancepractices,whichinclude:

(a) Theestablishmentofanauditcommittee.MembersoftheauditcommitteeareMaxHiggs,KenCanfieldand

KimHanlon;

(b) Director approval of operating budgets and monitoring of progress against these budgets;

(c) Ongoing Director training; and

(d)MonthlyDirectormeetingstodiscussperformanceandstrategicplans.

Annexure 3

There are no material differences between the information in the company’s Annexure 3 and the information in the

financialdocumentsinitsAnnualReport.

5 Year summary of performance

2010 2011 2012 2013 2014

Grossrevenue $ 581,889 675,861 735,390 802,740 819,229

Netprofitbeforetax $ 57,176 81,036 61,401 54,356 18,876

Total assets $ 472,610 519,222 528,242 519,222 495,979

Total liabilities $ 37,600 57,482 54,785 7,776 1,584

Totalequity $ 435,010 461,740 473,457 511,446 494,395

NSXreport(continued)

bendigobank.com.au

Inglewood & Districts Community Bank® Branch 64 Brooke Street, Inglewood VIC 3517Phone: (03) 5438 3500 Fax: (03) 5438 3502

Franchisee: Inglewood & Districts Community Enterprises Limited64 Brooke Street, Inglewood VIC 3517ABN: 87 123 959 375www.bendigobank.com.au/inglewood

Share Registry: AFS & Associates Pty Ltd61-65 Bull Street, Bendigo VIC 3550PO Box 454, Bendigo VIC 3552Phone: (03) 5443 0344 Fax: (03) 5443 5304Email: [email protected] (BMPAR14040) (08/14)

annual report 2014€¦ · 6 annual report inglewood & districts community enterprises limited...

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