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ABN: 89 743 048 843
SPECIAL PURPOSE FINANCIAL REPORTS
FOR THE YEAR ENDED 30 JUNE 2017
TASMANIAN INDEPENDENT RETAILERS
CO-OPERATIVE SOCIETY LTD
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
DIRECTORS REPORT
Directors
The names of the directors in office at any time during or since the end of the year are:
Brett Mackay Michael Baxter Peter Aulich Greg RaspinChris Hill Amy ReinerMark Colson
Principal Activities
Changes in State of Affairs
Review of Operations
Subsequent Events
The principal activities of the co-operative during the financial year were that of Investor, Fruitand Vegetable Wholesaler and Retail Marketer.
Your directors present their report of Tasmanian Independent Retailers Co-Operative SocietyLtd (the co-operative) for the financial year ended 30 June 2017.
Directors have been in office since the start of the financial year to the date of this reportunless otherwise stated.
The consolidated profit of the co-operative for the financial year after providing for income taxamounted to $2,359,793.
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the co-operative, the results of those operations, or the state of affairs of the co-operative in future financial years.
No significant changes in the co-operative’s state of affairs occurred during the financial year.
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED
30 JUNE 2017
Note 2017 2016
$ $
Continuing operations
Revenue 56,704,905 55,528,327
Cost of sales (44,767,482) (43,533,095)
Gross profit 11,937,423 11,995,232
Financial income 350,015 299,857
Other income 951,750 883,844
Total income 13,239,188 13,178,933
Depreciation and amortisation expenses (836,250) (808,803)
Employee benefits expense (6,278,226) (6,015,234)
Financial costs (10,480) (146,446)
Motor vehicle expenses (591,907) (501,749)
Rental and occupancy expenses (452,959) (350,805)
Other expenses (4,776,382) (5,234,877)
Profit/(Loss) before tax 292,984 121,019
Income tax (expense)/benefit 3 (40,360) (9,558)
Profit/(Loss) for the year 252,624 111,461
Other comprehensive income
Share of net profit from associates after tax 2,107,169 1,636,829
Total comprehensive income for the year 2 2,359,793 1,748,290
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
AS AT
30 JUNE 2017
Note 2017 2016
$ $
Current assets
Cash assets 4 6,546,982 7,972,269
Receivables 5 7,082,488 6,399,733
Inventories 6 708,566 855,008
Current tax assets 7 43,680 105,528
Other assets 8 127,683 60,565
Financial assets 9 - 88,495
Total current assets 14,509,399 15,481,598
Non-current assets
Financial assets 9 3,682,059 3,408,529
Investment accounted for using the equity method 10 17,702,281 15,595,112
Property, plant & equipment 11 13,585,675 13,809,311
Deferred tax asset 12 640,990 681,350
Intangible assets 13 234,275 234,275
Other assets 8 - -
Total non-current assets 35,845,280 33,728,577
Total assets 50,354,679 49,210,175
Current liabilities
Payables 14 7,648,683 9,199,209
Interest bearing liabilities 15 186,756 86,503
Provisions 16 1,024,180 975,544
Total current liabilities 8,859,619 10,261,256
Non-current liabilities
Interest bearing liabilities 15 208,743 22,005
Total non-current liabilities 208,743 22,005
Total liabilities 9,068,362 10,283,261
Net assets 41,286,317 38,926,914
Equity
Contributed equity 17 7,100 7,490
Reserves 18 24,801 24,801
Retained profits 19 41,254,416 38,894,623
Total equity 41,286,317 38,926,914
STATEMENT OF FINANCIAL POSITION
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
Note
Contributed
equity
Retained
earnings
Capital
reserve
Asset
revaluation
reserve Total
$ $ $ $ $
Balance at 1 July 2015 12,250 37,146,333 24,801 - 37,183,384
Profit attributable to equity shareholders - 1,748,290 - - 1,748,290
Transfers to/(from) reserve (4,760) - - - (4,760)
Balance at 30 June 2016 7,490 38,894,623 24,801 - 38,926,914
Profit attributable to equity shareholders - 2,359,793 - - 2,359,793
Share issued during the year (390) - - - (390)
Balance at 30 June 2017 7,100 41,254,416 24,801 - 41,286,317
30 JUNE 2017
FOR THE YEAR ENDED
STATEMENT OF CHANGES IN EQUITY
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED
30 JUNE 2017
Note 2017 2016
$ $
CASH FLOW FROM OPERATING ACTIVITIES
56,386,111 54,742,607
(58,780,450) (54,951,863)
355,643 349,788
1,039,319 1,224,125
61,848 (43,986)
Net cash provided by/(used in) operating activities 21(b) (937,529) 1,320,671
CASH FLOW FROM INVESTING ACTIVITIES
237,854 94,354
(821,513) (689,794)
(190,700) 3,997,330
Net cash provided by/(used in) investing activities (774,359) 3,401,890
CASH FLOW FROM FINANCING ACTIVITIES
456,750 74,789
(169,759) (3,632,844)
(390) (4,760)
Net cash provided by/(used in) financing activities 286,601 (3,562,815)
Net increase (decrease) in cash held (1,425,287) 1,159,746
Cash at beginning of year 7,972,269 6,812,523
Cash at end of year 21(a) 6,546,982 7,972,269
Receipts from customers
Payments to suppliers and employees
Financial income received
Income tax received/(paid)
Other receipts
Proceeds from borrowings
Repayment of borrowings
Shares issued/(repurchased)
Proceeds from sale of property, plant and equipment
Payment for property, plant and equipment
Proceeds from the disposal of/(payments for) investments
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
Note 1: Statement of significant accounting policies
Reporting entity concept
Australian Accounting Standards applied and significant policies adopted
AASB 101: Presentation of Financial StatementsAASB 102: InventoriesAASB 107: Cash Flow StatementsAASB 108: Accounting Policies, Changes in Accounting Estimates and ErrorsAASB 110: Events after the Balance Sheet DateAASB 112: Income Taxes AASB 116: Property, plant and equipmentAASB 118: RevenueAASB 119: Employee BenefitsAASB 128: Investment in AssociatesAASB 138: Intangible assetsAASB 1031: MaterialityAASB 1048: Interpretation and Application of StandardsAASB 1054: Australian Additional Disclosures
(a) Income tax
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it isprobable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when theasset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Theirmeasurement also reflects the manner in which management expects to recover or settle the carrying amount of therelated asset or liability.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or losswhen the tax relates to items that are credited or charged directly to equity.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during theyear as well as unused tax losses.
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated usingapplicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) aretherefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred taxexpense (income).
The following is a summary of the significant accounting policies adopted by the co-operative in the preparation of thefinancial report. These accounting policies have been consistently applied unless otherwise stated:
The financial report has been prepared on an accruals basis and is based on historic costs and does not take intoaccount changing money values or, except where specifically stated, current valuations of non-current assets.
No other applicable Accounting Standards, Accounting Interpretations or other authoritative pronouncements of theAustralian Accounting Standards Board have been intentionally applied.
The following accounting standards have been applied in the preparation of this financial report:
The directors have determined that Tasmanian Independent Retailers Co-operative Society Ltd (the co-operative) isnot a reporting entity as there are no users who depend on general purpose financial statements. The financial reportis a special purpose financial report prepared in order to satisfy the financial reporting requirements of the members ofthe co-operative and the Co-operatives National Law (Tasmania) Act 2015. The co-operative is a for-profit entity.
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
Note 1: Statement of significant accounting policies (cont.)
(a) Income tax (cont.)
(b) Property, plant and equipment
Property
Plant and equipment
Depreciation
Class of fixed asset Depreciation rateBuildings 2.50%Plant & Equipment 5.00% - 40.00%
(c) Leases
Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or over the termof the lease.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference canbe controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that netsettlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred taxassets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilitiesrelate to income taxes levied by the same taxation authority on either the same taxable entity or different taxableentities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset andliability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to berecovered or settled.
The depreciation rates used for each class of depreciable assets are:
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are chargedas expenses in the periods in which they are incurred.
The depreciable amount of all fixed assets, excluding freehold land, are depreciated on a straight line basis over theiruseful lives to the co-operative commencing from the time the asset is held ready for use.
Plant and equipment are initially measured on the cost basis.
Property is carried at cost less, where applicable, any accumulated depreciation.
Each class of property, plant and equipment are carried at cost less, where applicable, any accumulated depreciation.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains orlosses are included in the income statement. When revalued assets are sold, amount included in the revaluationreserve relating to that asset are transferred to retained earnings.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount isgreater than its estimated recoverable amount.
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but notthe legal ownership, are transferred to the co-operative, are classified as finance leases. Finance leases arecapitalised, recording an asset and a liability at the lower of the amounts equal to the fair value of the leased propertyor the present value of the minimum lease payments, including any guaranteed residual values. Lease payments areallocated between the reduction of the lease liability and the lease interest expense for the period.
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
Note 1: Statement of significant accounting policies (cont.)
(d) Inventories
(e) Investments
(f) Investments in associates
(g) Intangibles
(h) Employee benefits
Provision is made for the co-operative’s liability for employee benefits arising from services rendered by employees tobalance date. Employee benefits that are expected to be settled within one year have been measured at the amountsexpected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one yearhave been measured at the present value of the estimated future cash outflows to be made for those benefits.
In determining the net identifiable assets acquired, contingent liabilities of the acquiree are included to the extent towhich they represent a present obligation and can be measured reliably.
Goodwill is calculated as the excess of the sum of: (i) the consideration transferred; (ii) any non-controlling interest; and (iii) the acquisition date fair value of any previously held equity interest, over the acquisition date fair value of net identifiable assets acquired.
Details of the co-operative’s investments in associates are shown at Note 10.
When the co-operative’s share of losses in an associate equals or exceeds its interest in the associate, the co-operative discontinues recognising its share of further losses unless it has incurred legal or constructive obligations ormade payments on behalf of the associate. Upon the associate subsequently making profits, the co-operative willresume recognising its share of those profits once its share of the profits equals the share of the losses notrecognised.
When the reporting dates of the co-operative and the associate are different, the associate prepares, for use by the co-operative, financial statements as of the same date as the financial statements of the co-operative with adjustmentsbeing made for the effects of significant transactions or events that occur between that date and the date of theinvestor’s financial statements.
Profits and losses resulting from transactions between the co-operative and the associate are eliminated to the extentthey relate to the co-operative’s investment in the associate.
The carrying amount of the investment includes goodwill relating to the associate. Any excess of the co-operative’sshare of the net fair value of the associate’s identifiable assets, liabilities and contingent liabilities over the cost of theinvestment is excluded from the carrying amount of the investment and is instead included as income in thedetermination of the investor’s share of the associate’s profit or loss in the period in which the investment is acquired.
Associate companies are companies in which the co-operative has significant influence through holding, directly orindirectly, 20% or more of the voting power of the company. Investments in associates are accounted for in thefinancial statements by applying the equity method of accounting, whereby the investment is initially recognised at costand adjusted thereafter for the post-acquisition change in the company’s share of net assets of the associatecompany. In addition, the company’s share of the profit or loss of the associate company is included in the company’sprofit or loss.
Non-current investments are measured at market value. The carrying amount of investments is reviewed annually bydirectors to ensure it is not in excess of the recoverable amount of these investments. The recoverable amount for allinvestments is based on the quoted market value at the reporting date.
Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in first-out basisand include direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenses.Overheads are applied on the basis of normal operating capacity.
Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losseson the disposal of an entity include the carrying amount of goodwill related to the entity sold.
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
Note 1: Statement of significant accounting policies (cont.)
(i) Cash and cash equivalents
(j) Trade and other payables
(k) Revenue
(l) Goods and Services Tax
(m) Comparative figures
All revenue is stated net of the amount of goods and services tax (GST).
Interest and dividend revenue is recognised when amounts have been received.
Revenue from the sale of goods is recognised at the point of the delivery as this corresponds to the transfer ofsignificant risks and rewards of ownership of the goods and cessation of all responsibilities.
Where the co-operative has retrospectively applied an accounting policy, made a retrospective restatement orreclassified items in its financial statements, an additional statement of financial position as at the beginning of theearliest comparative period will be disclosed.
When required by Accounting Standards, comparative figures have been adjusted to conform to changes inpresentation for the current financial year.
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST is notrecoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost ofacquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet areshown inclusive of GST.
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and servicesreceived by the co-operative during the reporting period, which remain unpaid. The balance is recognised as a currentliability with the amounts normally paid within 30 days of recognition of the liability.
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquidinvestments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown withinshort-term borrowings in current liabilities on the balance sheet.
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
2017 2016
$ $
Note 2: Operating Profit
Profit from ordinary activities before income tax expense has been determined after:
(a) Revenue and Net Gains
Case allowance 19,844,248 18,742,572 Interest and dividends received 355,679 349,690 Profit on sale of property plant and equipment 41,818 3,962 Rental income 514,503 440,303 Rebates 7,924,110 7,848,554
(b) Expenses
Advertising 2,054,111 2,253,107 Bad & doubtful debts 7,187 12,946 Depreciation of property, plant & equipment 836,250 807,088 Directors emoluments 92,980 96,447 Equipment development fund 829,110 1,001,005 Loss on sale of non current assets 12,864 17,471 Other provisions 42,832 93,321 Purchase incentive payment 4,821,614 4,084,825 Remuneration of the auditor:
- audit or review 15,000 15,700 - other services 3,500 4,500 Subsidies 19,148,313 17,949,358
Note 3: Income Tax Expense
Tax expense comprises:
Current income tax expense/(benefit) - 27,032
40,360 (17,111)
Prior years under/(over) provision of income tax - (362)
Total income tax expense 40,360 9,559
Current income tax reconciliation:
Profit from ordinary activities before income tax 292,984 121,019
Prima facie tax payable at 30% 87,895 36,306
Less tax effect of:
- Non-assessable income/non-deductible expenses (47,535) (11,858) - Rebatable tax credits - (14,527)
Add tax effect of:
- Prior years under provision of income tax - (362)
40,360 9,559
The prima facie tax payable on profit from ordinary activities before income tax is reconciled to the income tax expense as follows:
Deferred tax (income)/expense relating to the origination and reversal of temporary differences
Income tax expense attributable to profit from ordinary activities
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
2017 2016
$ $
Note 4: Cash Assets
Cash on hand 900 1,305 Cash at bank 6,546,082 7,970,964
6,546,982 7,972,269
Note 5: Receivables
Trade debtors 7,111,738 6,428,983 Provision for impairment of receivables (29,250) (29,250)
7,082,488 6,399,733
Note 6: Inventories
Stock on hand (at cost) 708,566 855,008
Note 7: Current tax assets
Income tax receivable 43,680 105,528
Note 8: Other Assets
Current
Prepayments 127,683 60,565
127,683 60,565
Non-current
Loans - secured - -
127,683 60,565
Note 9: Financial Assets
Listed equities 21,264 16,834
Listed unit trusts 127,847 141,822
Unlisted trusts 3,532,947 3,249,871
Other financial instruments 1 88,496
3,682,059 3,497,023
Due within 12 months - 88,495
Due in more than 12 months 3,682,059 3,408,529
3,682,059 3,497,024
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
2017 2016
$ $
Note 10: Investment in associated entities
Interest are held in the following associated companies:
Statewide Independent Wholesalers Ltd
- Principal activity Food wholesaling
- Ownership interest 40% 40%
a) Movements during the year in equity
accounted investments in associated companies
15,595,112 13,958,283
2,107,169 1,636,829
- -
- -
- -
17,702,281 15,595,112
b) Equity accounted associate profits are broken
down as follows
3,017,328 2,341,912
(910,159) (705,083)
2,107,169 1,636,829
c) Summarised presentation of aggregate assets,
liabilities and performance of associates
131,170,144 114,956,940
15,713,363 16,127,647
146,883,507 131,084,587
87,281,075 78,599,189
12,540,400 10,691,289
99,821,475 89,290,478
47,062,032 41,794,109
971,610,613 906,375,095
5,267,923 4,092,073 Profit/(Loss) after income tax expense
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Revenue
Share of associates net profit before income tax expense
Share of associates income tax (expense)/benefit
Share of associates net profit after income tax expense
Repayment of loans during the year
Current assets
Balance at end of the financial year
Share of associated company's reserve increments arising during the year
Balance at beginning of the financial year
Share of associated company's net profit/(loss) after income tax
Dividend revenue from associated company
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
2017 2016
$ $
Note 11: Property, Plant & Equipment
Land and buildings at cost 12,755,313 12,731,407 Less accumulated depreciation (1,577,919) (1,330,456)
11,177,394 11,400,951
Plant and equipment at cost 3,139,929 3,637,710 Less accumulated depreciation (1,653,285) (1,882,060)
1,486,644 1,755,650
Motor vehicles at cost 2,851,677 2,543,379 Less accumulated depreciation (1,930,040) (1,890,669)
921,637 652,710
Total Property, Plant and Equipment 13,585,675 13,809,311
Note 12: Deferred Tax Assets
Future income tax benefit 640,990 681,350
Note 13: Intangible Assets
Preliminary expenses 55 55 Trademarks 1,715 1,715 Goodwill at cost 232,505 232,505 Borrowing costs - -
234,275 234,275
Note 14: Payables
Current
Trade creditors 6,671,169 7,932,835 Accrued expenses 977,514 1,266,374
7,648,683 9,199,209
Note 15: Interest Bearing Liabilities
Current
Asset purchase liability 186,756 24,135 Bank loan secured - 62,368
186,756 86,503
Non-current
Asset purchase liability 208,743 22,005 Bank loan secured - -
208,743 22,005
395,499 46,140
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
2017 2016
$ $
Note 16: Provisions
Current
Employee entitlements 1,024,180 975,544
Number of employees at year end: 95 95
Note 17: Contributed Equity
3,550 (2016: 3,745) fully paid ordinary shares 7,100 7,490
Note 18: Reserves
Capital reserve 24,801 24,801
24,801 24,801
Note 19: Retained Profits
38,894,623 37,146,333
2,359,793 1,748,290 Transfer from reserves - -
41,254,416 38,894,623
Note 20: Dividends paid and franking credits
- -
11,101,752 11,160,909
Retained profit at the end of the financial year
Profit from ordinary activities after income tax expense
Dividends per share paid or declared
Franking account balance (tax paid basis)
(a) Ordinary shares participate in dividends and proceeds on winding up of the co-operative in proportion to the number of shares held.
At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.
Retained profit at the beginning of the financial year
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
(ABN 89 743 048 843)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
2017 2016
$ $
Note 21: Cash Flow Information
a) Reconciliation of cash
Cash on hand and cash at bank 6,546,982 7,972,269
Profit from ordinary activities after income tax 2,359,793 1,748,290
Non cash flows in profit from ordinary activities:
836,250 807,088
(28,954) 13,509
5,664 49,833
(2,107,169) (1,636,829)
48,636 93,321
- 13,915
Changes in assets and liabilities:
(514,321) (903,588)
146,442 (10,070)
40,360 (17,112)
(1,718,960) 1,174,423
(67,118) 5,207
61,848 (17,316)
Net cash provided by operating activities (937,529) 1,320,671
Note 22: Company Details
The registered office and principal place of business is :
Tasmanian Independent Retailers Co-Operative Society Ltd
8 Translink Avenue
Western Junction TAS 7212
Increase/(decrease) in income tax payable
(Increase)/decrease in receivables
(Increase)/decrease in inventories
(Increase)/decrease in deferred income tax asset
Increase/(decrease) in payables
Increase/(decrease) in prepayments
Market value adjustments on investments
Share of net profit of associates
Movement in employee leave provisions
Hire purchase interest
Net gains on disposal of plant & equipment
Depreciation/amortisation
b) Reconciliation of cash flow from operations with profit from ordinary activities after income tax.
Cash at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the statement of financial position as follows:
i.
ii.
______________________
Dated: 14 November 2017
ASIC Registration #: 337294
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF
any applicable code of professional conduct in relation to the audit.
We declare that, to the best of our knowledge and belief, during the year ended 30 June 2017 there have been nocontraventions of:
the auditor’s independence requirements as set out in the Corporations Act 2001 and adopted in relationto this audit; and
GREGORY HARPER
Registered Company Auditor
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
46 Cameron Street
Launceston Tas 7250
LAUNCESTON 46-54 Cameron Street PO Box 1368 Launceston TAS 7250 Phone: 03 6337 7777 Fax: 03 6331 7309 AUSDOC DX 70151
SCOTTSDALE 24 King Street PO Box 62 Scottsdale TAS 7260 Phone: 03 6352 5755 Fax: 03 6352 2147 AUSDOC DX 72007
DEVONPORT 23 Stewart Street PO Box 166 Devonport TAS 7310 Phone: 03 6422 7888 Fax: 03 6424 5498 AUSDOC DX 70304
ULVERSTONE a The Quadrant 3
PO Box 401 Ulverstone TAS 7315 Phone: 03 6425 0666 Fax: 03 6425 5089 AUSDOC DX 70507
www.cameronsaa.com.au [email protected]
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialreport. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of materialmisstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity’s preparation and fair presentation of the financial report in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion onthe effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overallpresentation of the financial report.
Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.
The financial report has been prepared for distribution to members for the purpose of fulfilling the directors’ financial reporting under the Co-operatives National Law (Tasmania) Act 2015. We disclaim any assumption of responsibility
The Responsibility of the Directors for the Financial Report
The Co-operative's directors are responsible for the financial report and have determined that the accounting policiesused and described in Note 1 to the financial statements which form part of the financial report are appropriate tomeet the requirements of the Co-operatives National Law (Tasmania) Act 2015 and are appropriate to meet the needsof the members. The directors’ responsibility also includes designing, implementing and maintaining internal controlsrelevant to the preparation and fair presentation of the financial report that is free from material misstatement,whether due to fraud or error; selecting and applying appropriate accounting policies; and making accountingestimates that are reasonable in the circumstances.
Auditor’s Responsibility
We have audited the attached financial report, being a special purpose financial report of Tasmanian IndependentRetailers Co-Operative Society Ltd ("the Co-operative") for the year ended 30 June 2017, which comprises thestatement of financial position as at 30 June 2017, and the statement of comprehensive income, statement of changesin equity and statement of cash flows for the year then ended, a summary of significant accounting policies, otherexplanatory notes and the directors’ declaration.
INDEPENDENT AUDIT REPORT
TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD
Scope
TO THE DIRECTORS OF
Dated:
for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared.
14 November 2017
In our opinion, the financial report of Tasmanian Independent Retailers Co-Operative Society Ltd is in accordancewith:
GREGORY HARPERRegistered Company AuditorASIC Registration #: 337294
46 Cameron StreetLaunceston Tas 7250
ii. complying with Accounting Standards in Australia to the extent described in Note 1; and
b) other mandatory professional reporting requirements to the extent described in Note 1.
______________________________
a) the Co-operatives National Law (Tasmania) Act 2015 , including:
i. giving a true and fair view of the Co-operative’s financial position as at 30 June 2017 and of itsperformance for the year ended on that date in accordance with the accounting policies described in Note 2; and
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.
Independence
Auditor’s Opinion
In conducting our audit, we have complied with the independence requirements of Australian professional ethical pronouncements.
Tasmanian Independent Retailers Co-Operative Society Ltd.
2017 Chairman’s Report
It is with pleasure I present the Chairman’s Report for Tasmanian Independent Retailers Co-Operative Society Ltd
(TIR) for the financial year ending 30 June 2017 (FY17).
TIR recorded total purchases of $287.5M for the 53 week period of FY17, this represents a growth of +7.6%
compared to the prior financial year (FY16) – a 52 week period. By way of a like for like 52 week period comparison,
based on averages for FY17, this result represents growth of +5.6% compared to the prior financial year (FY16). This
is the sixth year on record of positive growth for the group.
The purchase growth collectively across the group, along with the increases in the TIR rebate percentage for Charge
Through from 1.5% to 2.5%, has in turn resulted in higher Purchase Incentive Payment (PIP) distributions to our
retailer network overall. Total distributions for the 53 week trading period were $4.8M on net Rebatable TIR group
purchases of $189.1M. This is a $700K increase on total FY16 distributions.
The past twelve months has also seen further growth in development from within the IGA network in Tasmania with
many retailers continuing to invest heavily in store refurbishments and upgrade programs thus further improving
the retail offer and corresponding retail sales.
Our marketing and support programs have been further enhanced with the revised IGA catalogue format, in addition
to our continuing focus within the social media and digital space. Needless to say the cost associated with marketing
the brand is expensive, with both the Board and TIR committed to delivering the best marketing outcomes at the
lowest cost to the overall network.
TIR’s association and alignment with Metcash Food & Grocery continues to positive outcomes to the IGA Network
via our participation in national marketing and support programs, with such alignment also extending to the IGA
Channel Criteria and eligibility. I thank Metcash for their continuing support of both TIR and the IGA network in
Tasmania.
SIW and IFP have also achieved many positive outcomes over the past 12 months with both businesses playing a
pivotal role in supporting the IGA and independent sector in Tasmania.
In June we gathered for the 2017 TIR Conference & Award Dinner, the response and support from both retailers and
suppliers to the renewed conference format was encouraging with a high attendance for both days of the
conference and the awards dinner. I congratulate all nominees and the winners of the 18 IGA department and IGA
Store of the Year Awards.
I would like to take this opportunity to thank all my fellow directors for their contributions over the last 12-months
to the Board of TIR. Their commitment in the interests of the Co-Op should be commended.
On behalf of the Board of Directors we thank all staff at TIR and Island Fresh Produce (IFP) for their ongoing
contributions and support to the entire network. They along with David Lanham and his team at Statewide
Independent Wholesalers (SIW) continue to deliver on their high standards in providing services to us that enable
us to achieve our own successful outcomes.
Chairman
Greg Raspin
22 November 2017