Cremorne Capital Limited – HVT Land Trust ARSN 154 154 033 Financial Statement for the Year Ended 30 June 2 023
THIS ANNEXURE A OF 24 PAGES REFERRED TO IN FORM 388 COPY OF FINANCIAL STATEMENTS AND REPORTS
MICHAEL RAMSDEN DIRECTOR DATE:
FINANCIAL STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
Page Number Directors’ Report
2
Auditors Independence Declaration
5
Independent Audit Report
6
Directors’ Declaration
8
Statement of Profit or Loss and Other Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Net Assets Attributable to Unitholders
11
Statement of Cash Flows
12
Notes to the Financial Statements
13
1
Directors’ Report The directors of Cremorne Capital Limited (`the Responsible Entity') submit herewith the financial report for the Cremorne Capital Limited - HVT Land Trust (`the Scheme") for the year ended 30 June 2023. In order to comply with the provisions of the Corporations Act 2001, the directors' report as follows: Directors The names of the directors of the Responsible Entity during or since the end of the year are: • • •
Mr M A Ramsden Mr D.A. Carroll Mr O.R. Carton
Directors were in office for this entire period unless otherwise stated.
Principal activities The Scheme is a registered managed investment scheme domiciled in Australia. The principal activity of the Scheme was to invest funds in accordance with the investment objectives and guidelines communicated to unitholders and in accordance with the provisions of the Constitution. The Scheme holds investments and manages the land assets obtained and operated by the responsible entity. The scheme is involved with hay production on part of the land currently not being utilised by trees. Review of operations Results The financial results of the operations of the Scheme are disclosed in the statement of profit and loss and other comprehensive income. The total comprehensive income for the Scheme for the year ended 30 June 2023 was a loss of $57,492 (2022: Loss $277,406)
Distributions No distribution was paid or is payable in respect of the year ended 30 June 2023 (2022: Nil). Management costs The Responsible Entity fee for the year ended 30 June 2023 was $208,819 (2022: $207,269). State of affairs The Scheme will continue to be managed in accordance with the investment objectives and in accordance with the provisions of its Constitution. Future results will accordingly depend on the performance of the markets to which the Scheme is exposed. Subsequent events There has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen since the end of the financial year, that has significantly affected, or may significantly affect, the operations of the Scheme, the results of the Scheme, or the state of affairs of the Scheme in future financial years.
2
Likely developments and expected results of operations The Scheme will continue to be managed in accordance with the investment objectives and in accord ance with the provisions of its Constitution. Future results will depend on a number of factors, some of which are beyond the control of the scheme, such as market factors and environmental factors. Scheme information in the Directors' Report There were 6,499 units in the Scheme held by the Responsible Entity as at the end of the financial year (2022: 6,499). There were no applications in the Scheme issued during the year. No withdrawals from the Scheme during the year. The value of the Scheme’s assets as at the end of the financial year is disclosed in the Statement of Financial Position. Options granted No options were granted over unissued units in the Scheme during or since the end of the year or granted to the Responsible Entity. No unissued units in the Scheme were under option as at the date on which this Report was made.
Indemnification Under the Scheme's constitution the responsible entity including its officers and employees is indemnified out of the Scheme's assets for any loss, damage, expenses or other liability incurred by it in properly performing or exercising any of its powers, d uties or rights in relation to the Scheme. The Scheme has not indemnified any auditor of the Scheme. Insurance premiums Insurance premiums are paid out of the Scheme's assets in relation to insurance cover for the Responsible Entity, its officers and employees, the Compliance Committee or the auditors of the Scheme.
3
Independence declaration by auditor
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5. Signed in accordance with a resolution of the directors of the Responsible Entity made pursuant to s.298 (2) of the Corporations Act 2001. On behalf of the Directors
Michael Ramsden Director MELBOURNE DATED: 24 September 2023
4
Auditor's Independence Declaration Cremorne Capital Ltd - HVT Land Trust As auditor for the audit of Cremorne Capital Ltd - HVT Land Trust for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief, there have been: •
no contraventions of the independence requirements of the Corporations Act 2001 in relation to the audit; and
•
no contraventions of any applicable code of professional conduct in relation to the audit.
Nexia Melbourne Audit Pty Ltd
Richard S. Cen
Melbourne
Director
Dated this 24th day of September 2023
Independent Auditor’s Report To the Members of Cremorne Capital Ltd – HVT Land Trust Report on the Audit of the Financial Report Opinion We have audited the financial report of Cremorne Capital Ltd – HVT Land Trust (the Scheme), which comprises the statement of financial position as at 30 June 2023, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of Cremorne Capital Ltd – HVT Land Trust is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Scheme’s financial position as at 30 June 2023 and of its financial performance for the year then ended; and (ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Scheme in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material Uncertainty Related To Going Concern We draw attention to Note 15 in the financial report, which indicates that the financial statements of the Scheme have been prepared on the basis of a going concern. The Scheme incurred a net loss of $57,492 during the year ended 30 June 2023 and has a net deficit of working capital of $514,184. These events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the Scheme’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Oher information The directors are responsible for the other information. The other information comprises the information in the Scheme’s annual report for the year ended 30 June 2023, but does not include the financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard.
Directors’ responsibility for the financial report The directors of the Scheme are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Scheme’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Scheme or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibility for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at The Australian Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our auditor’s report. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Nexia Melbourne Audit Pty Ltd Melbourne Dated this 24th day of September 2023
Richard S. Cen Director
DIRECTORS’ DECLARATION
In the opinion of the directors of Cremorne Capital Ltd, the Responsible Entity of Cremorne Capital Limited HVT Land Trust (the Scheme): 1. The financial statements and notes set out on pages 9 to 24, are in accordance with the Corporations Act 2001, including: (a)
giving a true and fair view of financial position of the Scheme as at 30 June 2023 and of its performance for the financial year ended on that date; and
(b) complying with Australian Accounting Standards (including the Australian Accounting Interpretations), and the Corporations Regulations 2001. 2. The financial report also complies with International Financial Reporting Standards as discussed in Note 1(a). 3. Subject to the achievement of matters described in note 15 there are reasonable grounds to believe that the Scheme will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Directors of the Responsible Entity made pursuant to s.295(5) of the Corporations Act 2001.
On behalf of the Directors
Michael Ramsden Director MELBOURNE Dated: 24 September 2023
8
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Financial Year ended 30 June 2023 Year Ended 30 June 2023 $
Year Ended 30 June 2022 $
792,063 (261,115) 530,948
541,259 (222,620) 318,639
Total Income
530,948
318,639
EXPENSES Administration Expenses Management Costs Consulting Fees Depreciation Legal Expenses Farming and Plantation Expenses Finance Costs Auditor’s Remuneration Other Expenses
(75,739) (208,819) (3,412) (5,522) (169,234) (47,387) (18,050) (60,278)
(65,497) (207,269) (2,200) (5,655) (36,057) (141,847) (42,964) (18,300) (76,256)
Total Expenses
(588,441)
(596,045)
Total Comprehensive Income
(57,492)
(277,406)
Change in Net Assets Attributed to Unitholders
(57,492)
(277,406)
Note INCOME Revenue Cost of Sales Gross Profit
2
3
The above Statement should be read in conjunction with the accompanying notes 9
STATEMENT OF FINANCIAL POSITION
As at 30 June 2023 Year Ended 30 June 2023 $
Year Ended 30 June 2022 $
13 4
167,445 19,243 186,688
410,461 16,948 427,409
6 7
3,687,000 4,559,072 8,246,072
3,687,000 4,564,594 8,251,594
8,432,760
8,679,003
(197,550) (503,322) (700,872)
(72,034) (817,589) (889,623)
(700,872)
(889,623)
7,731,888
7,789,380
Note ASSETS Current Assets Cash and Cash Equivalents Trade and Other Receivables Total Current Assets Non-current assets Biological Assets Property, Plant & Equipment Total Non-current Assets Total Assets
LIABILITIES Current Liabilities Trade and Other Payables Borrowings Total Current Liabilities
5 8
Total Liabilities (Excluding Net Assets Attributable to Unitholders) Surplus Attributable to Unitholders
9
The above Statement should be read in conjunction with the accompanying notes 10
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS
For the Financial Year ended 30 June 2023 Net Assets Attributable to Unitholders $ 6,641,686 (277,406) 1,425,100 7,789,380 (57,492) -
Balance at 30 June 2021 Net loss attributable to unitholders Revaluation of assets Application for units Redemption of units Balance at 30 June 2022 Net loss attributable to unitholders Revaluation of assets Application for units Redemption of units Balance at 30 June 2023
7,731,888
The above Statement should be read in conjunction with the accompanying notes 11
STATEMENT OF CASH FLOWS
For the Financial Year ended 30 June 2023
Note Cash flows from Operating Activities Receipts from Customers Payments for Expenses Financing Costs Net Cash (Used In)/Providing Operating Activities
Cash flows from Financing Repayments of Borrowings Proceeds from Rights Issue Net Cash (Used In)/Providing Financing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Held Cash and Cash Equivalents at Beginning of the Year Cash and Cash Equivalents at End of the Year
Year Ended 30 June 2023
Year Ended 30 June 2022
Inflows (Outflows) $
Inflows (Outflows) $
13(b)
789,768 (671,130) (47,387) 71,251
537,636 (1,289,117) (42,964) (794,445)
13(d)
(314,267) (314,267)
(257,006) 1,425,100 1,168,094
(243,016)
373,649
410,461 167,445
36,812 410,461
13(a)
The above Statement should be read in conjunction with the accompanying notes 12
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 1. Summary of Significant Accounting Policies Basis of preparation This general purpose financial report for the financial year ended 30 June 2023 has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and complies with other requirements of the law. The functional currency is in Australian Dollars and the level of rounding is to the nearest dollar. Statement of compliance The financial statement complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS). The Scheme is a profit entity. The financial statements were authorised for issue by the directors. The directors have the ability to amend the financial statements after issue. In the application of A-IFRS management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2022 and the comparative information presented in these financial statements. Adoption of new and revised accounting standards The Scheme has adopted all standards which became effective for the first time at 30 June 2023, the adoption of these standards has not caused any material adjustments to the reported financial position, performance or cash flow of the Scheme.
13
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 Significant Accounting Policies Accounting policies set out below have been applied consistently to all periods presented in these financial statements and the policies are selected and applied in a manner, which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions and other events is reported. (a) Financial Instruments Financial Assets The financial assets of the Scheme have been reclassified into one of the following categories on adoption of AASB 9 based on primarily the business model in which a financial asset is managed and its contractual cash flow characteristics: • • • •
Measured at amortised cost Fair value through profit or loss (FVTPL) Fair value through other comprehensive income - debt instruments (FVOCI - debt) Fair value through other comprehensive income - equity instruments (FVOCI - equity).
Impairment of financial assets The incurred loss model from AASB 139 has been replaced with an expected credit loss model in AASB 9 for assets measured at amortised cost, contract assets and fair value through other comprehensive income. This has not resulted in the earlier recognition of credit loss (bad debt provisions). Impairment of non-financial assets At the end of each reporting period the Scheme determines whether there is an evidence of an impairment indicator for non-financial assets. Where an indicator exists and regardless for indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated. Where assets do not operate independently of other assets, the recoverable amount of the relevant cash generating unit (CGU) is estimated. The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cashgenerating unit. Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss. Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss. (b) Cash and cash equivalents Cash comprises current deposits with banks Cash equivalents are short-term highly liquid investments readily convertible to known amounts of cash, subject to an insignificant risk of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or any other purposes.
14
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 (c) Revenue The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of promised goods or services to customers at an amount that reflects the consideration the Scheme expects to receive in exchange for those goods or services. Revenue is recognised by applying a fivestep model as follows: 1. 2. 3. 4. 5.
Identify the contract with the customer Identify the performance obligations Determine the transaction price Allocate the transaction price to the performance obligations Recognise revenue as and when control of the performance obligations is transferred
(d) Expenses All expenses are recognised in the income statement on an accrual basis. Included in other expenses is insurance, rates and land tax paid by the Scheme. (e) Income Tax Deferred taxes have not been recognised in the financial statements in relation to differences between the carrying amounts of assets and liabilities and their respective tax bases, including taxes on capital gains which could arise in the event of a sale of investments for the amount at which they are stated in the financial statements. In the event that taxable gains are realised by the Scheme, these gains would be included in the taxable income that is assessable in the hands of the unit holders as noted above. Realised capital losses are not distributed to unit holders but are retained within the Scheme to be offset against any realised capital gains. The benefit of any carried forward capital losses are also not recognised in the financial statements. If in any period realised capital gains exceed realised capital losses, including those carried forward from earlier periods and eligible for offset, the excess is included in taxable income that is assessable in the hands of unit holders in that period and is distributed to unit holders in accordance with the requirements of the Scheme Constitution. (f) Application and Redemptions Applications received for units in the Scheme are recorded net of any entry fees payable prior to the issue of units in the Scheme. Redemptions from the Scheme are recorded gross of any exit fees payable after the cancellation of units redeemed. The application and redemption prices are determined as the net assets attributable to unit holders of the Scheme adjusted for the estimated transaction costs, divided by the number of units on issue on the date of the application or redemption. (g) Redeemable Units All redeemable units issued by the Scheme provide investors with the right to require redemption for cash and give rise to a financial liability. In accordance with the Constitution, the Scheme is contractually obliged to redeem units at redemption price, which includes an allowance for transaction costs incurred by the Scheme on disposal of its assets required to fund the redemptions. (h) Unit Prices The unit price is based on unit price accounting outlined in the Scheme's constitution.
15
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 (i) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), recoverable from the Australian Taxation Office (ATO): i. ii.
where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from the Australian Taxation Office is included in receivables in the balance sheet. (j) Payables Trade payables and other accounts payable are recognised when the Scheme becomes obliged to make future payments resulting from the purchase of goods & services. (k) Receivables Trade receivables and other receivables are recorded at amortised cost less impairment. (l) Inventory Inventories relate to cattle and are valued at the lower of cost and net realisable value. Cost is determined on the average cost basis and comprises the cost of purchase and transport cost. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. (m) Biological Assets Biological assets comprise of trees not yet harvested. Biological assets are measured at fair value less costs to sell, with any change recognised in the income statement. Cost to sell includes all costs that would be necessary to sell the assets, including freight and direct selling costs. The fair value of a biological asset is based on its present location and condition. If an active market or other effective market exists for a biological asset or agricultural produce in its present location and condition, the quoted price in that market is the appropriate basis for determining the fair value of that asset. (n) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment of losses. Items of property, plant and equipment acquired for nil or nominal considerations have been recorded at the acquisition date at fair value. Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable. Assets measured using the revaluation model are carried at fair value at the revaluation date less any subsequent accumulated depreciation and impairment losses. Revaluations are performed whenever there is a material movement in the value of an asset under the revaluation model.
16
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 Land Land is measured using the revaluation model. Building Plant and equipment are measured using the cost model. Plant and equipment Plant and equipment are measured using the cost model. Depreciation Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Scheme, commencing when the asset is ready for use. At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate. (o) Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Scheme. Sale and cost of agricultural produce and livestock Revenue from the sale of agricultural produce and livestock is recognised when the goods has been delivered to the customer, the customer has accepted the product and collectability of the related receivable is probable. The cost of wood produced represents the shared cost of all Growers and mainly relates to the wood production, transportation and storage. Revenue Recognition Trees in the ground at the reporting date are measured at their fair value less costs to sell. Immediately prior to harvest the fair value is determined on an estimated yield per hectare basis at the commodity’s quoted spot price in the marketplace. Taxes The Scheme is subject to income and capital gains taxes in numerous jurisdictions. Significant judgement is required to determine the total provision for current and deferred taxes. The Scheme recognises liabilities for current taxes based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income and deferred tax provisions in the period in which the determination is made. Deferred tax assets and liabilities are recognised on a net basis to the extent they relate to the same fiscal unity and fall due in approximately the same period.
17
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 2. Revenue Growers Maintenance Contributions Hay Income Agistment Income
30 June 2023 $ 679,495 93,833 18,735 792,063
30 June 2022 $ 437,353 77,153 26,753 541,259
77 8,468 1,433 50,300 60,278
3 10,543 2,731 62,979 76,256
3,241 16,002 19,243
1,768 15,180 16,948
185,300 12,250 197,550
60,434 11,600 72,034
3,687,000 3,687,000
3,687,000 3,687,000
3. Other Expenses Bank Charges Compliance Filing Fees Sundry Total
4. Receivables Trade Debtors Goods and Service Tax Recoverable
5. Payables Other Unsecured Payables and Accrued Expenses Accrued Audit Fees
6. Biological Assets Trees
The plantation was independently valued as at June 2021 by Margules Groome based on their fair market value.
18
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 7. Property, Plant & Equipment 30 June 2023 $
30 June 2022 $
Land Land – At independent valuation Closing Balance
4,400,000 4,400,000
4,400,000 4,400,000
Building House – At cost Accumulated depreciation Closing Balance
158,414 (31,012) 127,402
158,414 (27,052) 131,362
Plant and Equipment Equipment – At cost Accumulated depreciation Closing Balance
57,862 (26,192) 31,670
57,862 (24,630) 33,232
Total Property, Plant & Equipment
4,559,072
4,564,594
Movements in carrying amounts of property, plant and equipment
Land $
Buildings $
Plant & Equipment $
Total $
Year Ended 30 June 2022 Balance at the Beginning of Year Revaluation Depreciation
4,400,000 -
131,362 (3,960)
33,232 (1,562)
4,564,594 (5,522)
Balance at the End of the Year
4,400,000
127,402
31,670
4,559,072
Asset Revaluations The freehold land was independently valued as at June 2021 by Margules Groome based on their fair market value.
19
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 8. Borrowings 30 June 2023 $ Non-current Loan – Westpac Total current borrowings
30 June 2022 $
503,322 503,322
817,589 817,589
At beginning of the year Units issued during the year
7,789,380 -
6,641,686 1,425,100
Transfer of the net profit (loss) from the statement of profit or loss and other comprehensive income Revaluation of assets Closing balance of net assets attributable to unit holders
(57,492)
(277,406)
7,731,888
7,789,380
56,856 45 56,901
42,374 14,251 231 56,856
9. Net assets attributable to unit holders a) Movements in net assets attributable to unit holders
b)
Movements of units in the scheme At beginning of the year Units issued during the year Unites reinstated during the year Units cancelled – non-payment of contribution Closing balance of units in the scheme
10. Operating Segments The operation of the Scheme is solely in Australia and no additional operating segment established during the financial year.
11. Auditor's Remuneration Half Year Review, Annual Audit and Compliance Plan Audit
20
18,050
18,300
18,050
18,300
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 12. Related Party Disclosures The Responsible Entity of Cremorne Capital Limited - HVT Land Trust is Cremorne Capital Limited (ACN 006 844 588). The Custodian of the Scheme is Perpetual Investment Management Limited. Custody fees of $31,337 were paid during the period. (2022: $21,879) Transactions with related parties have taken place at arm’s length and in the ordinary course of business. Investment management fees of $208,819 were paid to the Responsible Entity in accordance with the constitution. (2022: $207,269) No Custodian fees were paid to the Responsible Entity in accordance with the constitution as no applications were received by the Scheme. The Responsible Entity has paid $0 (2022: $0) worth of expenses on behalf of the Scheme, which were paid or are payable by the Scheme. At year end the Responsible Entity is owed $97,389. (2022: $33,269) The Responsible Entity has been paid no commissions for the sale and purchase of assets and debt arrangement fees (2022: $Nil). Accounting and administration fees of $75,739 were paid or payable to Terrain Capital Ltd. Michael Ramsden is a director of Cremorne Capital Limited and Terrain Capital Limited (2022: $65,497). Legal fees of $0 were paid or payable to Oliver Carton who is a director of Cremorne Capital Limited (2022: $27,375) for legal work associated with the Rights Issue and other matters. Key Management Personnel The names of the key management personnel of the Scheme during the financial year were: • Mr M.A. Ramsden (Director) • Mr D.A. Carroll (Director) • Mr O.R. Carton (Director) The positions noted above for the Scheme's key management personnel are the positions held within the Responsible Entity and not the Scheme itself. Compensation of Key Management Personnel No amount was paid by the Scheme directly to the Directors of the Responsible Entity. Consequently, no compensation as defined in AASB 124 "Related Party Disclosures" is paid by the Scheme to the Directors as Key Management Personnel. Holdings of units by related parties During or since the end of the financial period, Michael Ramsden who holds 6,967 units in the scheme under the names of Whitehaven Investments Pty Ltd, Pacrim Super Fund, Doverpoint Pty Ltd and Ormley Pty Ltd. Cremorne Capital Ltd holds 6,499 units in the scheme, Don Carroll holds 500 units and Oliver Carton has a beneficial interest in 150 units.
21
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 13. Notes to the Statement of Cash flows (a) Reconciliation of cash and cash equivalent 30 June 2023 $ Cash Total cash and cash equivalent
30 June 2022 $
167,445 167,445
410,461 410,461
(57,492)
(277,406)
5,522
5,655
(2,295) 125,516 71,251
(3,623) (519,071) (794,445)
(b) Reconciliation of cash flow from operations with loss from ordinary activities Net loss attributable to unitholders* Cash flows excluded from loss attributable to operating activities Non-cash flows in loss: Depreciation Changes in assets and liabilities: (Increase)/decrease in receivables Increase/(decrease) in creditors and accruals Cash flow from/(used in) operations (c)
Non-Cash Financing and Investing Activities
During the period, no distributions were reinvested by unitholders for additional units in the Scheme. During the period, no distributions receivable by the Scheme in respect of its investments were reinvested. (d) Changes in liabilities arising from financing activities
$
Non-cash changes Foreign Other nonexchange cash movement movements $ $
817,589
(314,267)
-
-
503,322
817,589
(314,267)
-
-
503,322
Cash flows 2022 $ Borrowings Total liabilities from financing activities
2023 $
14. Financial Instruments (a) Financial risk management objectives The Scheme does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The use of financial derivatives is governed by the Schemes investment policies, which provide written principles on the use of financial derivatives. (b) Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset and financial liability are disclosed in note 1 to the financial statements.
22
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023 (c)
Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount of those assets, net of any provisions for doubtful debts, as disclosed in the statement of financial position and notes to the financial statements. The Scheme does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Scheme.
(d) Net Fair Values The net fair value of financial assets and financial liabilities approximates their carrying values as disclosed in the Statement of Financial Position and notes to the financial statements (e)
Financial liability and financial asset maturity analysis
Financial liabilities due for payment Trade and other payable Loans payable Total expected outflow Cash and cash equivalents Trade, term and loan receivable Total anticipated inflows
Within 1 year 2023 2022 $ $
197,550
1 to 5 Years 2023 2022 $ $
Over 5 Years 2023 2022 $ $
Total 2023 $
2022 $
72,034
-
-
-
-
197,550
72,034
-
503,322
817,589
-
-
503,322
817,589
197,550
72,034
503,322
817,589
-
-
700,872
889,623
167,445
410,461
-
-
-
-
167,445
410,461
19,243
16,948
-
-
-
-
19,243
16,948
186,688
427,409
-
-
-
-
186,688
427,409
(f) Liquidity Risk Liquidity risk is the risk that the Scheme will encounter difficulty in meeting obligations associated with financial liabilities. The Scheme manages this risk through the following mechanisms: -
preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities; monitoring credit facilities; managing credit risk related to financial assets; and only investing surplus cash with major financial institutions
23
Cremorne Capital Limited – HVT Land Trust
Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2023
(g) Market Risk Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, foreign exchange rates, and equity prices. Market risk is managed and monitored using sensitivity analysis and minimised through ensuring that all investment activities are undertaken in accordance with established mandate limits and investment strategies.
Interest rate risk management 30 June 2023
Financial Assets Cash & Equivalents Receivables Financial Liabilities Current Borrowings
30 June 2022
Financial Assets Cash & Equivalents Receivables Financial Liabilities Current Borrowings
Weighted Average Int Rate (%p.a.)
Variable Int. Rate $
Non-Interest Bearing $
Total
0.00%
167,445 167,445
19,243 19,243
167,445 19,243 186,687
6.14%
503,322 503,322
197,550 197,550
700,872 700,872
Weighted Average Int Rate (%p.a.)
Variable Int. Rate $
Non-Interest Bearing $
0.00%
410,461 410,461
16,948 16,948
410,461 16,948 427,409
6.14%
817,589 817,589
72,034 72,034
889,623 889,623
$
Total $
15. Going Concern This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business. Future operating expenses will either be met through subscriptions received from members of the Scheme, maintenance contributions or from the proceeds of asset and stock sales. Based on sales to date, the Responsible Entity is confident that the Scheme will be successful in achieving its objectives.
Cremorne Capital Limited (A.C.N. 006 844 588) a company incorporated and operating in Australia is the Responsible Entity of the Cremorne Capital Limited - HVT Land Trust. Registered Office 8 Chapel Street Cremorne Vic 3121
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