jcu enterprises pty ltd and controlled entities … · the financial statements have been prepared...

31 DECEMBER 2014

ABN 59 011 005 888

JCU ENTERPRISES PTY LTD

AND CONTROLLED ENTITIES

ANNUAL REPORTFOR THE YEAR ENDED

PageDirector's Report 1Auditor's Independence Declaration 3Statement of Comprehensive Income 4Statement of Financial Position 5Statement of Changes in Equity 6Statement of Cash Flows 7Notes to the Financial Statements 8-20Director's Declaration 21Independent Auditors Report 22

JCU ENTERPRISES PTY LTD

ABN 59 011 005 888

Contents:

AND CONTROLLED ENTITIES

FOR THE YEAR ENDEDANNUAL REPORT

31 DECEMBER 2014

1

Your directors present their report on the company and its controlled entities for the financial yearended 31 December 2014.

DirectorsThe names of the directors in office at any time during or since the end of the year are:

Mr Ernest William Landy (appointed 29 February 2008)Mr Ian David Jessup (appointed 10 October 2011, resigned 5 July 2014))Prof. Chris Reid Cocklin (appointed 4 November 2011)Mr Campbell James Charlton (appointed 15 July 2014)

Principal ActivitiesThe principal activities of the companies in the economic entity during the financial year were:-

There were no other significant changes in the nature of the economic entity's principal activitiesduring the financial year under review not otherwise disclosed in this report.

Operating Results

Dividends

Options

Significant Changes in State of Affairs

After Balance Date Events

Future developments, Prospects and Business Strategies

No matters or circumstances have arisen since the end of the financial year, which significantlyaffected or may significantly affect the operations of the company, the results of those operations orthe state of affairs of the company in financial years subsequent to the financial year ended 31December 2014.

JCU ENTERPRISES PTY LTD AND CONTROLLED ENTITIESABN 59 011 005 888

DIRECTOR'S REPORTFOR THE YEAR ENDED 31 DECEMBER 2014

There were no significant changes in the State of Affairs of the company for the financial year.

The consolidated profit attributable to the parent entity for the year, after providing for income tax and eliminating outside equity interests amounted to $3,030,027 (2013: profit of $3,549,349).

No dividends were paid during the year and no recommendation is made as the company'sconstitution precludes the distribution of any assets or income by way of dividend or otherwise.

No options over issued shares or interest in the company or a controlled entity were granted during orsince the end of the financial year and there were no options outstanding at the date of this report.

* providing tertiary courses of education in Singapore; and* to hold shares in companies on behalf of the University and to perform a governance role inrespect of such companies.

No information is included on the likely developments in the operations of the company and theexpected results of those operations as it is the opinion of the directors of the company that thisinformation would prejudice the interests of the company if included in this report.

jc126588

Typewritten Text

3

This statement should be read in conjunction with the accompanying notes. 4

Note2014 2013 2014 2013

$ $ $ $Revenue from continuing operations 2 41,624,508 40,298,441 2,452 2,557

Total revenue and income from continuing operations41,624,508 40,298,441 2,452 2,557

Finance costs 177,856 594,620 - - Expenses from continuing operations 3 37,743,674 35,664,771 5,003 1,843 Total expenses from continuing operations 37,921,530 36,259,391 5,003 1,843

Profit (loss) before income tax 3,702,978 4,039,050 (2,551) 715

Income tax expense 1(b) 672,951 489,701 - -

Profit for the year 3,030,027 3,549,349 (2,551) 715

Other Comprehensive income after income tax:

Exchange differences on translating foreign controlled entities 574,973 640,877 - -

Other comprehensive income for the year 574,973 640,877 - -

Total comprehensive income for the year 3,605,000 4,190,226 (2,551) 715

Profit attributable to :

Members of the Parent Entity 3,030,026 3,549,349 (2,551) 715

3,030,026 3,549,349 (2,551) 715

JCU ENTERPRISES PTY LTD AND CONTROLLED ENTITIES

FOR THE YEAR ENDED 31 DECEMBER 2014

Parent EntityConsolidated

ABN 59 011 005 888STATEMENT OF COMPREHENSIVE INCOME


Note2014 2013 2014 2013

$ $ $ $CURRENT ASSETSCash and cash equivalents 4 23,119,788 27,988,936 91,249 94,308 Trade and Other Receivables 5 936,442 1,416,776 1,291 783 Other Current Assets 6 2,157,220 910,647 - - Inventory 70,341 7,274 - - Total Current Assets 26,283,791 30,323,633 92,540 95,091

NON-CURRENT ASSETSTrade and Other Receivables 5 - - 510,000 510,000 Financial Assets 7 - - 76 76 Property, plant & equipment 8 4,526,973 4,219,804 - - Total Non-Current Assets 4,526,973 4,219,804 510,076 510,076

TOTAL ASSETS 30,810,764 34,543,437 602,616 605,166

CURRENT LIABILITIESDeferred revenue 9 8,316,380 8,292,866 - - Trade and Other Payables 10 6,466,624 5,313,095 76 76 Borrowings 11 2,796,324 8,437,787 - - Tax Liability 12 852,929 937,957 - - Total Current Liabilities 18,432,257 22,981,705 76 76

NON-CURRENT LIABILITIESBorrowings 11 694,598 3,419,110 - - Tax Liability 12 113,914 177,624 - - Total Non-Current Liabilities 808,512 3,596,734 - -

TOTAL LIABILITIES 19,240,769 26,578,439 76 76

NET ASSETS 11,569,995 7,964,998 602,540 605,091

EQUITY

Issued Capital 13 492,954 492,954 492,954 492,954

Accumulated Profits/(Losses) 10,288,113 7,258,086 109,586 112,137 Foreign currency translation reserve 788,928 213,955 - -

Parent interest 11,569,995 7,964,998 602,540 605,091

TOTAL EQUITY 11,569,995 7,964,998 602,540 605,091


STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2014

Consolidated Parent Entity

ABN 59 011 005 888


Note

Share Capital -Ordinary Shares

RetainedEarnings

ForeignCurrency

TranslationReserve Total

Consolidated Group $ $ $ $

Balance at 1 January 2013 492,954 3,708,737 (426,922) 3,774,769 Profit attributable to members of the parent equity - 3,549,349 - 3,549,349 Total other comprehensive income for the year - - 640,877 640,877 Balance at 31 December 2013 492,954 7,258,086 213,955 7,964,998

Balance at 1 January 2014 492,954 7,258,086 213,955 7,964,998 Profit attributable to members of the parent equity - 3,030,027 - 3,030,027 Total other comprehensive income for the year - - 574,973 574,973 Balance at 31 December 2014 492,954 10,288,113 788,928 11,569,995

Parent entity

Balance at 1 January 2013 492,954 111,421 - 604,375Profit attributable to members of the parent equity - 715 - 715Balance at 31 December 2013 492,954 112,136 - 605,091

Balance at 1 January 2014 492,954 112,136 - 605,091Profit attributable to members of the parent equity - (2,551) - (2,551) Balance at 31 December 2014 492,954 109,585 - 602,540


STATEMENT OF CHANGES IN EQUITYFOR YEAR ENDED 31 DECEMBER 2014


Note2014 2013 2014 2013

$ $ $ $

CASH FLOWS FROM OPERATING ACTIVITIESInterest received 1,071,757 4,337 2,414 2,458 Receipts from student fees and other customers 41,056,598 40,546,156 - - Payments to suppliers & employees (36,445,141) (34,279,005) (5,473) (1,918) Finance costs (177,856) (594,620) - - Income tax paid (821,690) (695,338) - - Net cash provided by (used in) operating activities 19(ii) 4,683,668 4,981,530 (3,059) 540

CASH FLOW FROM INVESTING ACTIVITIESPurchase of property, plant and equipment (1,575,410) (313,932) - - Net cash provided by (used in) investing activities (1,575,410) (313,932) - -

CASH FLOW FROM FINANCING ACTIVITIESProceeds from borrowings - 349,784 - - Repayment of borrowings (8,277,316) (1,909,501) - - Net cash provided by (used in) financing activities (8,277,316) (1,559,717) - -

Net increase (decrease) in cash held (5,169,058) 3,107,881 (3,059) 540

Cash at beginning of financial year 27,988,936 24,799,056 94,308 93,768

299,910 81,999 - -

Cash and cash equivalents at end of financial year 19(i) 23,119,788 27,988,936 91,249 94,308

Effects of exchange rate changes on cash holdings



STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2014

8

Reporting Basis and Conventions

(a)A controlled entity of JCU Enterprises Pty Ltd is one where JCU Enterprises Pty Ltd has the capacity to dominatethe decision-making in relation to the financial and operating policies of the other entity. A list of the controlledentities of JCU Enterprises Pty Ltd is contained in Note 14 to the financial statements. All controlled entities havea 31 December year-end.

In preparing the consolidated financial statements, all inter-company balances and transactions between entitiesin the group, including any unrealised profits or losses, have been eliminated on consolidation. Accountingpolicies of subsidiaries have been changed, where necessary, to ensure consistency with those policies appliedby the parent entity.

Where controlled entities have entered or left the group during the year, the financial performance of thoseentities is included only for the period of the year that they were controlled.

Non controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, areshown separately within the equity section of the consolidated statement of financial performance and statementof comprehensive income. The non controlling interest in the net assets comprise their interests at the date of theoriginal business combination and their share of changes in equity since that date.


NOTE 1 – Statement of Accounting Policies

The directors’ have prepared the consolidated financial statements on the basis that the company is a non-reportingentity because there are no users dependent on general purpose financial statements. These financial statements aretherefore special purpose financial statements that have been prepared in order to meet the requirements of Division60 of the Australian Charities and Not-for-profits Commission Act 2012 (Cth) and Subdivision 60 of the Australian Charities and Not-for-profits Commission Regulation 2013 (Cth). The company is a not-for-profit entity for financialreporting purposes under Australian Accounting Standards.

The financial statements have been prepared in accordance with the following applicable Accounting Standards:

AASB101 Presentation of Financial StatementsAASB107 Cash Flow StatementAASB108 Accounting Polices, Changes in Accounting Estimates & ErrorsAASB110 Events after Balance Sheet dateAASB116 Property Plant & EquipmentAASB118 RevenueAASB1031 MaterialityAASB1048 Interpretation & Application of StandardsAASB1054 Australian Additional Disclosures

No other Accounting Standards, Urgent Issues Group Consensus Views or other authoritative pronouncements of theAustralian Accounting Standards Board have been applied.

The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwisestated in the notes. The material accounting policies that have been adopted in the preparation of these financialstatements are as follows:

FOR THE YEAR ENDED 31 DECEMBER 2014NOTES TO THE FINANCIAL STATEMENTS

The consolidated financial statements and notes represent those of JCU Enterprises Pty Ltd and Controlled Entity (the'consolidated group' or 'group').

Principles of Consolidation

9




(b)

(c)

(d)

Class of Fixed Asset Depreciation Rate

Office Equipment 20%Computer Equipment 33%Renovations Over the terms of the lease that are from 18

months to 39 monthsMotor Vehicles 20%

Property, Plant and Equipment

Property, Plant and Equipment are included in the accounts at cost less accumulated depreciation. Thedepreciable amounts of all non-current assets are depreciated over their estimated useful lives commencing fromthe time the asset is held ready for use.

Deferred tax assets are recognised to the extent that it is possible future taxable profit will be available againstwhich the temporary differences can be utilised. Deferred tax is charged or credited to equity if the tax relates toitems that are credited or charged, in the same or a different year, directly to equity.

Income Tax

JCU Enterprises Pty Ltd is wholly owned by James Cook University. JCU Enterprises Pty Ltd by virtue of Section50-55 of the Income Tax Assessment Act 1997, is exempted from the liability to pay company income tax. JCUEnterprises Pty Ltd is however, subject to Payroll Tax, Fringe Benefits Tax and Goods and Services Tax (GST).

Trade and Other ReceivablesTrade receivables are generally due for settlement within 30 days of the date of invoice. The carrying value less provision for impairment is a reasonable approximation of their values due to the short-term nature of trade receivables.

James Cook Australia Institute of Higher Learning Pte Ltd (formerly, JCU Singapore Pte Ltd) is a controlled entityof JCU Enterprises Pty Ltd. James Cook Australia Institute of Higher Learning Pte Ltd is subject to income tax inSingapore. James Cook Australia Institute of Higher Learning Pte Ltd does not qualify for relief from income taxunder the Singapore income tax legislation as it does not qualify as a non-profit organisation. JCU EnterprisesPty Ltd is not entitled to any relief under the Singapore, Australian or the double taxation agreement between thetwo countries.

The income tax expense in the statement of comprehensive income for the year comprises current and deferredtax. Income tax expense is recognised in the statement of comprehensive income except to the extent that itrelates to items recognised directly to equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted orsubstantially enacted at the balance date, and any adjustment to tax payable in respect of previous years.

Deferred income tax is provided using the liability method, on all temporary differences at the statement offinancial position date arising between the tax bases of assets and liabilities and their carrying amounts in thefinancial statements. Currently enacted tax rates are used in the determination of deferred income tax.

James Cook Holdings Pte Ltd is a controlled entity of JCU Enterprises Pty Ltd and is subject to income tax inSingapore. James Cook Holdings Pte Ltd does not qualify for relief from income tax under the Singapore incometax legislation as it does not qualify as a non-profit organisation. JCU Enterprises Pty Ltd is not entitled to anyrelief under the Singapore, Australian or the double taxation agreement between the two countries.

10




(d)

(e)

(f)

(g)

(h)

Impairment of Assets

Goods and Services Tax (GST)

The expected net cash flows have been discounted to present values in determining recoverable amounts. Thegain or loss on disposal of all fixed assets is determined as the difference between the carrying amount of theasset at the time of disposal and the proceeds of disposal, and is included in operating profit before income tax inthe year of disposal.

At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determinewhether there is any indication that those assets have been impaired. If such an indication exists, the recoverableamount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared tothe assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed tothe statement of comprehensive income.

The carrying amount of property, plant and equipment is reviewed annually by directors to ensure it is not inexcess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of theexpected net cash flows, which will be received from the assets employment and subsequent disposal.

Operating Leases

Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classifiedas operating leases. Payments made under operating (net of any incentives received from the lessor) areexpensed. When an operating lease is terminated before the lease has expired, any payment required to bemade to the lessor by way of penalty is recognised as an expense in the year in which termination takes place.

Cash and cash equivalents includes cash on hand, deposits at call with banks or financial institutions, andinvestments in money market instruments that are readily convertible to known amounts of cash and which aresubject to an insignificant risk of a change in value.

Cash and Cash Equivalents

Finance Leases

Leases of fixed assets, where substantially all the benefits and risks incidental to the ownership of the asset, butnot legal ownership, are transferred to the Group, are classified as finance leases. Finance leases are capitalisedby recording an asset and a liability equal to the present value of the minimum lease payments, including anyguaranteed residual value. Leased assets are amortised over their estimated useful lives. Lease payments areallocated between the reduction of the lease liability and the lease interest expense for the year.

Leases

Property, Plant and Equipment (cont'd)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GSTincurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as partof the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in thestatement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cashflows on a gross basis, except for the component on investing and financing activities, which are disclosed asoperating cash flows.

11




(i)

(j)

(k)

(l)

Revenue from the sale of goods and rendering of services is recognised upon the delivery of the goods/servicesto customers.

Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets isthe rate inherent in the instrument.

Revenue from course fees are recognised over the period of the course.

Foreign Currency Transactions and Balances

Revenue

Where required, comparative figures have been adjusted to conform with changes in presentation in the currentfinancial year and so may differ from the prior year audited financial statements.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing atthe dates of the transactions. Foreign exchange gains and losses resulting from the settlement of suchtransactions and from the translation at year-end exchange rates of monetary assets and liabilities denominatedin foreign currencies are recognised in the statement of comprehensive income, except when they are deferred inequity as qualifying cash flow hedges and qualifying net investment hedges.

The comparative balances stated in these financial accounts are for a full year.

Comparatives Balances

The financial results and position of foreign operations whose functional currency is different from the group'spresentation currency are translated as follows: - assets and liabilities are translated at year-end exchange rates prevailing at that reporting date; - income and expenses are translated at average exchange rates for the period; and - all resulting exchange differences shall be recognised in other comprehensive income.

Exchange differences arising on translation of foreign operations are recognised in other comprehensive incomeand presented in the group's foreign currency translation reserve in the statement of financial position. When aforeign operation is disposed, a proportionate share of such exchange difference is reclassified to profit or loss aspart of the gain or loss on disposal.

Trade and other payables represent the liability outstanding at the end of the reporting period for goods andservices received by the company during the reporting period which remain unpaid. The balance is recognised asa current liability with the amount being normally paid within 30 days of recognition of the liability.

The consolidated financial statements are presented in Australian dollars which is the parent entity's functionaland presentation currency.

Trade and Other Payables

Revenue from registration fees are recognised upon application for admission.

12




(m)

(n)

(o)

Inventories are measured at lower of cost and net realisable value.

Inventories acquired at no cost, or for nominal consideration, are valued at the current replacement cost as at thedate of acquisition.

Amortised cost is calculated as: (i) the amount at which the financial asset or financial liability is measured atinitial recognition; (ii) less principal repayments; (iii) plus or minus the cumulative amortisation of the difference, ifany, between the amount initially recognised and the maturity amount calculated using the effective interestmethod; and (iv) less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant period andis 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 reliablypredicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset orfinancial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying valuewith a consequential recognition of an income or expense in the statement of comprehensive income.

The controlled entity (James Cook Australia Institute of Higher Learning Pte Ltd) pays fixed contributions intoseparate entities including the Central Provident Fund (CPF), a defined contribution plan regulated and managedby the Singaporean Government. Contributions are recognised as an expense as incurred.

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractualprovisions of the instrument. For financial assets, this is equivalent to the date that the company commits itself toeither purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument isclassified ‘at fair value through profit or loss’ in which case transaction costs are expensed to statement ofcomprehensive income immediately.

Inventories

Financial Instruments

Employee Benefits

Provision is made for the controlled entity’s (James Cook Australia Institute of Higher Learning Pte Ltd) liability foremployee benefits arising from services rendered by employees to year end date. Employee benefits expected tobe settled within one year together with benefits arising from wages, salaries, annual leave and long service leavewhich may be settled after one year, have been measured at the amounts expected to be paid when the liability issettled.

Initial recognition and measurement

Classification and subsequent measurement

Financial instruments are subsequently measured at either fair value, amortised cost using the effective interestrate method or cost. Fair value represents the amount for which an asset could be exchanged or a liabilitysettled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used todetermine fair value. In other circumstances, valuation techniques are adopted.

13




(o)

(p)

(q) New and amended standards and interpretations

The Group has adopted the following new and amended Australian Accounting Standards and AASBinterpretations as of 1 January 2014.

AASB 2012-3: Amendments to Australian Accounting Standards - Offsetting Financial Assets andFinancial Liabilities (application date on or after 1 January 2014).

AASB 2013-3: Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets(application date on or after 1 January 2014).

AASB 2013-5 Amendments to Australian Accounting Standards - Investment Entities (applicable forannual reporting periods commencing on or after 1 January 2014).

All borrowing costs are recognised as expenses in the period in which they are incurred.

Impairment

At the end of each reporting period, the group assesses whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the statement of comprehensive income.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quotedin an active market and are subsequently measured at amortised cost.

(ii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed ordeterminable payments, and it is the entity’s intention to hold these investments to maturity. They aresubsequently measured at amortised cost.

Borrowing Costs

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are appliedto determine the fair value for all unlisted securities, including recent arm’s length transactions, reference tosimilar instruments and option pricing models.

The group does not designate any interests in subsidiaries as being subject to the requirements of accountingstandards specifically attributable to financial instruments

Financial Instruments (cont'd)

(iii) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Fair value

(i) Loans and receivables

14




(q) New and amended standards and interpretations (cont'd)

AASB 2013-8: Amendments to Australian Accounting Standards - Australian Implementation Guidance forNot-for-Profit Entities - Control and Structured Entities [AASB 10, AASB 12 & AASB 1049] (application dateon or after 1 January 2014).

AASB 10: Consolidated Financial Statements (application date for not-for-profit entities on 1 January2014).

AASB 11: Joint Arrangements (application date for not-for-profit entities on 1 January 2014).

AASB 12: Disclosure of interests on Other Entities. (application date for not-for-profit entities on 1 January2014).

These Standards will not significantly impact on the Group's financial statements.

(r) New Accounting Standards and Interpretations

Certain new Accounting Standards and Interpretations have been published that are not mandatory for 31December 2014 reporting periods. The Group does not anticipate early adoption of any of the followingAustralian Accounting Standards or Interpretations.

AASB 9: Financial Instruments and associated Amending Standards (applicable for annual reportingperiods commencing on or after 1 January 2017).

AASB 2010-7: Amendments to Australian Accounting Standards arising AASB 9 (applicable for annualreporting periods commencing on or after 1 January 2018).

AASB 2014-1: Amendments to Australian Accounting Standards (applicable for annual reporting periodscommencing:- Parts A-C - 1 July 2014; Part D - 1 January 2016; Part E - 1 January 2018)

AASB 2014-3: Amendments to Australian Accounting Standards - Accounting for Acquisitions of Interestsin Joint Operations (applicable for annual reporting periods commencing on or after 1 January 2016)

AASB 2014-4: Amendments to Australian Accounting Standards - Clarification of Acceptable Methods ofDepreciation and Amortisation (applicable for annual reporting periods commencing on or after 1 January2016).

These Standards are not expected to significantly impact the Group's financial statements.

15

Note2014 2013 2014 2013

$ $ $ $

Courses fees 40,316,242 39,242,378 - - Registration Fees 578,349 216,263 - - Interest 415,425 275,202 2,452 2,557 Other 314,492 564,598 - -

41,624,508 40,298,441 2,452 2,557

Auditor’s remunerationAudit 3(a) 35,193 30,739 - -

Depreciation 1,454,644 1,273,457 - - Property Plant & Equipment write off - 604,425 - - Impairment of Trade Debtors 39,741 126,451 - - Direct Costs 8,201,522 8,273,036 - - Agency Commissions 2,014,797 1,896,170 - - Marketing 4,276,451 4,040,667 - - Office Rental 6,757,357 4,359,002 - - Repair & Maintenance 1,045,007 1,832,617 - - Staff Costs 12,582,967 12,407,539 - - Expenses for ordinary activities 1,335,995 820,668 5,003 1,843

37,743,674 35,664,771 5,003 1,843

(a) Audit FeesThe financial statements of James Cook Holdings Pte Ltd and James Cook Australia Institute of Higher Learning PteLtd are audited by RSM Chio Lim LLP, Public Accountants and Chartered Accountants, Singapore. For the prior year,both companies were audited by Baker Tilly TFWLCL, Public Accountants and Certified Public Accountants of BeachRoad, Singapore. The consolidated financial statements of JCU Enterprises Pty Ltd is audited by Queensland AuditOffice.

RSM Chio Lim LLP- James Cook Australia Institute of Higher Learning Pte Ltd 35,193 - - - - James Cook Holdings Pte Ltd 4,269 - - -

Baker Tilly TFWLCL- James Cook Australia Institute of Higher Learning Pte Ltd - 30,739 - - - James Cook Holdings Pte Ltd - 3,332 - -

Queensland Audit Office- JCU Enterprises Pty Ltd - - 4,700 4,700

Audit fees for both James Cook Holdings Pte Ltd and JCU Enterprises Pty Ltd have been paid by James Cook University.

19(i) 23,119,788 27,988,936 91,249 94,308


Consolidated

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2014

Parent Entity

ABN 59 011 005 888

Cash at bank and on hand

NOTE 2 - Revenue from continuing operations

NOTE 3 - Expenses from continuing operations

NOTE 4 - Cash and Cash Equivalents

16

2014 2013 2014 2013$ $ $ $

CURRENTTrade Receivables 348,888 475,399 545 75 Other Trade Receivables - James Cook University 705,384 441,408 - - Provision for Impairment (117,830) (156,366) - - Accrued Income - 656,335 746 708

936,442 1,416,776 1,291 783

NON-CURRENTOther Trade Receivables - James Cook Holdings Pte Ltd - - 510,000 510,000

- - 510,000 510,000

Deposits 2,117,245 813,229 - - 39,975 97,418 - -

2,157,220 910,647 - -

- James Cook Holdings Pte Ltd - - 76 76 - - 76 76

Property, plant & equipment - at cost 11,834,767 9,810,592 - - (7,307,794) (5,590,787) - - 4,526,973 4,219,804 - -

Office Equipment

Computer Equipment

RenovationsWIP Renovations Total

$ $ $ $ $Year ended 31 December 2013

189,906 504,044 - 4,530,929 5,224,879 28,164 195,629 - 90,140 313,933

(92,244) (299,085) - (217,482) (608,811) Currency exchange rate variance 14,608 34,022 - 514,630 563,260 Depreciation expense (81,200) (353,672) - (838,585) (1,273,457) Carrying amount at the end of the year 59,234 80,938 - 4,079,632 4,219,804

Office Equipment

Computer Equipment

RenovationsWIP Renovations Total

$ $ $ $ $Year ended 31 December 2014

17,232 88,258 1,114,065 355,856 1,575,411 Currency exchange rate variance 1,822 4,741 53,524 126,315 186,402 Depreciation expense (32,079) (61,688) - (1,360,877) (1,454,644) Carrying amount at the end of the year 46,209 112,249 1,167,589 3,200,926 4,526,973

Additions

Movement in carrying amounts

Total property, plant & equipmentLess accumulated depreciation

Consolidated Group




Balance at beginning of the yearAdditionsDisposals

Consolidated Group

NOTE 8 - Property, Plant & Equipment

NOTE 5 - Trade and Other Receivables

NOTE 6 - Other Current Assets

NOTE 7 - Financial Assets

Prepayments

Unlisted Equities

17

2014 2013 2014 2013$ $ $ $

8,316,380 8,292,866 - -

Represents course fees billed in advance for courses to be conducted after year end.

67,784 2,116,870 - - 5,504,135 2,956,435 - -

Other Trade Creditors - James Cook University 894,705 239,790 - - Other Trade Creditors - James Cook Holdings Pte Ltd - - 76 76

6,466,624 5,313,095 76 76

CURRENT2,796,324 2,760,913 - -

Loan - James Cook University - 5,676,874 - - 2,796,324 8,437,787 - -

NON-CURRENT694,598 3,330,450 - -

Loan - James Cook University - 88,660 - - 694,598 3,419,110 - -

During the financial year, James Cook Holdings Pte Ltd refinanced the balloon repayment of S$6.000m of the existingbank loan which is effective from February 2014. The bank loan bears variable interest at 2.25% per annum plus SGDswap offer rate and is repayable in 8 quarterly instalments of S$0.750m each with the first repayment at the end of thethird month from the first utilisation date in 2014. The bank loan will mature on 29 January 2016 and is secured bythe following:

i) pledge of shares in the company and subsidiary,ii) fixed and floating charge over assets in the subsidiary; andii) corporate guarantee from subsidiary company.

James Cook Holdings Pte Ltd had a loan of AUD$ 5.677m outstanding to the University. The loan was repaid in full in February 2014.

Current Deferred Tax Liability 852,929 937,957 - - Non Current Deferred Tax Liability 113,914 177,624 - -

966,843 1,115,581 - -

492,954 492,954 492,954 492,954

The company has authorised share capital amounting to 1,000,000 ordinary shares of no par value.

Trade CreditorsAccrued Expenditure




492,954 ordinary shares fully paid

Course fees received in advance

Interest Bearing Liabilities

Bank Loan

NOTE 13 - Issued Capital

NOTE 12 - Tax Liabilities

NOTE 9 - Deferred Revenue

NOTE 10 - Trade and Other Payables

Bank Loan

NOTE 11 - Borrowings

18

Ownership %

Country of incorporation

Investment at cost

2014 2013$ $ $

100 Singapore 1,000,000 3,123,433 3,879,959

100 Singapore 76 2,669,284 2,682,159

Net profit adjustment on consolidation (2,760,139) (3,013,487) 3,032,578 3,548,630

2014 2013 2014 2013$ $ $ $

Total revenueSales to customers - - 40,894,591 39,458,641 Other 2,452 2,558 727,464 837,242

2,452 2,558 41,622,055 40,295,883 Operating profit after income tax (2,551) 715 3,010,928 3,528,227

Total Assets 602,616 605,166 30,901,728 34,646,076

Total Liabilities 76 76 19,863,770 27,087,211

Depreciation - - (1,454,644) (1,273,457)

Acquisition of assets - - 1,575,410 313,932


NOTES TO THE FINANCIAL STATEMENTS

JCU Enterprises Pty Ltd

The principal activities of the company in the consolidated group were providing tertiary courses of education in Singapore and holdingshares in companies on behalf of the University and to perform a governance role in respect of such companies.

STATEMENT OF OPERATIONS OF INDUSTRY AND GEOGRAPHICAL SEGMENTS

James Cook Holdings Pte Ltd Consolidated


Contribution to consolidated operating profit/(loss) after

income tax

NOTE 14 - Controlled Entities

NOTE 15 - Segment Information

The segment revenues and expenses are those directly attributable to segments and include transactions between segments. Thetransactions are eliminated on consolidation.


James Cook Australia Institute of Higher Learning Pte Ltd.

James Cook Holdings Pte Ltd

19

JCU Enterprises Pty Ltd is a company limited by shares wholly owned and controlled by James Cook University. JCUEnterprises Pty Ltd's constitution includes in the objects, holding shares in companies on behalf of the University. JCUEnterprises Pty Ltd holds a controlling interest in both James Cook Holdings Pte Ltd and James Cook Australia Institute ofHigher Learning Pte Ltd.

In accordance with its constitution, JCU Enterprises Pty Ltd directors are approved as directors by the Council of theUniversity.

2. Paid a license fee to the University of $5,145,039; 3. Incurred an interest expense to the University of $34,626.

Note2014

Consolidated Parent Consolidated ParentCash 4 23,119,788 91,249 - -Receivables 6 - - 936,442 511,291

2013

Cash 4 27,988,936 94,308 - -Receivables 6 - - 1,416,776 510,783

James Cook Australia Institute of Higher Learning Pte Ltd is achieving interest at rates ranging from 0.40% to 0.80% (2013:0.42% to 0.80%) on fixed deposits. A fixed and floating charge has been placed on cash and cash equivalents as security toa bank for banking facilities of S$3.769m (2013: S$6.859) granted to James Cook Holdings Pte Ltd.

There are no contingent liabilities for the financial year ended 31 December 2014.



Relationship of JCU Enterprises Pty Ltd with James Cook University (the University):

NOTE 16 - Related Party Transactions


Given that JCU Enterprises Pty Ltd's constitution also provides for any property remaining, having satisfied all debts and liabilities inthe event of winding up or dissolution of the company, to be given or transferred to the University rather than distributed to itsmembers, all the company’s assets must ultimately be used for the benefit of or be transferred to the University.

(i) Interest rate risk exposure:

1. Incurred expenses which were paid by the University;

NOTE 17 - Financial Instruments

During the period JCU Enterprises Pty Ltd:

NOTE 18 - Contingent Liabilities

(ii) Credit risk:

The credit risk on financial assets of the consolidated group which have been recognised on the statement of financial position, is thecarrying amount.

(iii) Net fair values of the financial and liabilities

The consolidated group's financial assets and liabilities included in the statement of financial position are carried at amounts thatapproximate net fair value.

Fixed Deposits held by the parent entity bear interest at a weighted average of 2.59% (2013: 4.18).

Financial Assets

Financial Assets

Non InterestBearing

$

The consolidated groups exposure to interest rate risk and the effective weighted average interest rate for classes of financial assetsand financial liabilities is set out below:

FloatingInterest

$

20

Note2014 2013 2014 2013

$ $ $ $

(i) Reconciliation of cash - for the purpose of thisstatement of cash flows, cash includes:Cash at bank - term deposit 17,614,680 21,550,057 88,788 86,460 Cash at bank - cheque account 5,505,108 6,438,879 2,461 7,848

4 23,119,788 27,988,936 91,249 94,308 (ii) Reconciliation of cash flow from operations with

profit from ordinary activities after income tax:Operating profit (loss) after income tax 3,030,027 3,549,349 (2,551) 715

Non-cash flows in profit from ordinary activities:Depreciation and amortisation 1,454,644 1,273,457 - - Loss on disposal of assets - 604,425 - -

Changes in assets & liabilities:Decrease/(Increase) in Receivables (823,683) (1,464,569) (509) (175) Decrease/(Increase) in Prepayments 57,442 64,451 - - Decrease/(Increase) in Inventories (63,068) 43,608 - - Increase/(Decrease) in Payables 1,153,529 3,539 - - Increase/(Decrease) in Taxation (148,738) (205,638) - - Increase/(Decrease) in Deferred Revenue 23,514 1,112,908 - - Net cash provided (used) by ordinary operations 4,683,668 4,981,530 (3,059) 540

Estimated amounts committed at the end of the reportingyear for future capital expenditure but not recognised in the financial statements are as follows:

Commitments to renovate leasehold property 2,567,224 - - -

Payable:not later than 1 year 9,557,033 3,377,550 - - later than 1 year but not later than 5 years 12,762,744 5,166,725 - -

22,319,777 8,544,275 - -

There have been no events arising subsequent to balance date of a material nature that would have a material effectupon the future operations and viability of the economic entity.

(i) The company was incorporated in Australia(ii) The parent entity is: James Cook University(iii) The registered office of the company is: c/- James Cook University

Townsville, QLD 4810(iv) The principal place of business is: James Cook University

Townsville, QLD 4810





NOTE 19 - Cash flow Information

NOTE 21 - Leasing Commitments

NOTE 23 - Company Details

Operating lease commitmentsNon-cancellable operating leases contracted for but not capitalised in the financial statements:

NOTE 22 - Events After the Reporting Period

NOTE 20 - Capital Commitments

jcu enterprises pty ltd and controlled entities … · the financial statements have been prepared...

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