Cremorne Capital Ltd - HVT Land Trust FInancials FYE 31 December 2021

Cremorne Capital Limited – HVT Land Trust ARSN 154 154 033 Interim Financial Report for the Half Year Ended 31 December 2021

Interim Financial Report For the Half Year Ended 31 December 2021

Page Number Directors’ Report

2

Auditors Independence Declaration

3

Independent Review Report

4

Directors’ Declaration

6

Condensed Statement of Profit and Loss and Other Comprehensive Income

7

Condensed Statement of Financial Position

8

Condensed Statement of Changes in Net Assets Attributable to Unitholders

9

Condensed Statement of Cash Flows

10

Condensed Notes to the Condensed Financial Statements

11

1

DIRECTORS’ REPORT The directors of Cremorne Capital Limited (‘the Responsible Entity’) submit herewith the condensed financial report of HVT Land Trust (‘the Scheme’) for the half year ended 31 December 2021. 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.

Review of operations Results The financial results of the operations of the Scheme are disclosed in the condensed statement of profit and loss and other comprehensive income. The net loss for the Scheme half-year ended 31 December 2021 was $13,140. This compares to a profit of $116,363 for the half-year ended 31 December 2020.

In respect of the half-year ended 31 December 2021, no distributions are payable (2020: Nil.) 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 3.

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 30 March 2022

2

AUDITORS INDEPENDENCE DECLARATION

3

INDEPENDENT AUDITOR’S REVIEW REPORT

4

INDEPENDENT AUDITOR’S REVIEW REPORT

5

DIRECTORS’ DECLARATION DIRECTORS’ DECLARATION The condensed financial statements and notes thereto of the HVT Land Trust for the half year ended 31 December 2021 as set out on pages 7 – 15 have been prepared by Cremorne Capital Limited (‘the Responsible Entity’) in accordance with the Corporations Act 2001.

The directors of the Responsible Entity declare that: a)

In the directors’ opinion, there are reasonable grounds to believe that the Scheme will be able to pay its debts as and when they become due and payable; and

b)

In the directors’ opinion, the attached condensed financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the Scheme.

Signed in accordance with a resolution of the Directors of the Responsible Entity made pursuant to s.303 (5) of the Corporations Act 2001.

On behalf of the Directors

………………………….

M. Ramsden Director

MELBOURNE

Dated: 30 March 2022

6

CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the Half Year ended 31 December 2021

Note INCOME Maintenance contributions Other income Total Income

Half Year Ended 31 Dec 2021 $

Half Year Ended 31 Dec 2020 $

379,873 91,553 471,426

365,065 13,223 378,288

(145,923) (23,188) (168,221) (4,200) (143,034) (484,566)

(145,923) (23,847) (34,084) (4,400) (53,671) (261,925)

(13,140)

116,363

-

-

(13,140)

116,363

-

-

Items that may be reclassified subsequently to profit or loss

-

-

Total Comprehensive Income

-

-

Change in Net Assets Attributed to Unitholders

-

-

EXPENSES Management Fees Borrowing Costs Plantation expenses Auditor’s Remuneration Other Expenses Total Expenses Profit (Loss) before income tax Income tax (expense) benefit

2

Profit (Loss) after tax Other Comprehensive Income Items that will not be reclassified subsequently to profit or loss Loss on revaluation of land and biological asset

The above Statement should be read in conjunction with the accompanying notes 7

CONDENSED STATEMENT OF FINANCIAL POSITION As at 31 December 2021

Note ASSETS Current Assets Cash and cash equivalents Trade and Other Receivables Total Current Assets

Half Year Ended 31 Dec 2021 $

Half Year Ended 30 June 2021 $

4

505,811 116,153 621,964

36,812 13,325 50,137

5 6

3,687,000 4,567,322 8,254,322

3,687,000 4,570,249 8,257,249

8,876,286

8,307,386

LIABILITIES Current Liabilities Trade and other payables Borrowings Total Current Liabilities

(212,030) (797,810) (1,009,840)

(591,105) (1,074,595) (1,665,700)

Total Liabilities (excluding net assets attributable to Unitholders)

(1,009,840)

(1,665,700)

7,866,446

6,641,686

Biological Assets Property, Plant & Equipment Total Non-current Assets Total Assets

Surplus (Deficit) attributable to Unitholders

3

The above Statement should be read in conjunction with the accompanying notes 8

CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS For the Half Year ended 31 December 2021

31 Dec 2021 $ 6,641,686 (13,140) 1,237,900 7,866,446

Opening net assets attributable to unitholders Net profit/(loss) attributable to unitholders Other comprehensive income Application for units Redemption of units Closing net assets attributable to unitholders

31 Dec 2020 $ 6,817,427 116,363 6,933,790

The above Statement should be read in conjunction with the accompanying notes 9

CONDENSED STATEMENT OF CASH FLOWS For the Half Year ended 31 December 2021

Note Cash flows from Operating Activities Receipts Payments for expenses Finance costs Net Cash used in operating activities Cash flows from Investing Activities Payments for property, plant and equipment Net Cash used in/provided by investing activities Cash flows from Financing Repayment of borrowings Proceeds from unit issue Net cash used in financing activities Net increase(decrease) in cash and cash equivalents held Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period

4

Half Year Ended 31 Dec 2021

Half Year Ended 31 Dec 2020

Inflows (Outflows) $

Inflows (Outflows) $

368,599 (837,527) (23,189) (492,117)

384,397 (164,785) (23,847) 195,765

-

-

(276,784) 1,237,900 961,116

(146,122) (146,122)

468,999

49,643

36,812

9,146

505,811

58,789

The above Statement should be read in conjunction with the accompanying notes 10

Cremorne Capital Limited – HVT Land Trust

Condensed Notes to and forming part of the Interim Financial Statements for the Half Year Ended 31 December 2021

1

Summary of Significant Accounting Policies

(a) Approval of Financial Statements The financial statements of the Scheme for the first half of December 2021 were authorised for issue in accordance with a resolution of the board of directors on March 2022. (b) Statement of compliance The half year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report. (c) Basis of preparation The condensed financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the Scheme’s 2021 annual financial report for the financial year ended 30 June 2021, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. (d) Adoption of new accounting standard The Scheme has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current reporting period.

The adoption of all the new and revised Standards and Interpretations has not resulted in any changes to the Scheme’s accounting policies and has no effect on the amounts reported for the current or prior periods. The new and revised Standards and Interpretations has not had a material impact and not resulted in changes to the Scheme’s presentation of, or disclosure in, its half-year financial statements.

The above Statement should be read in conjunction with the accompanying notes 11

Cremorne Capital Limited – HVT Land Trust

Condensed Notes to and forming part of the Interim Financial Statements for the Half Year Ended 31 December 2021 2.

Income Tax

a) Income tax expense The major component of tax expense comprises Local Current Tax – current period Deferred tax expenses (benefit) In respect of the current year Total income tax expense (benefit) b)

31 December 2021 $

31 December 2020 $

(3,942)

34,909

3,942 -

(34,909) -

(3,942)

34,909

3,942 -

(34,909) -

-

-

-

-

-

-

The prima facie tax payable on profit before income tax is reconciled to the income tax expense as follows: Prima facie income tax receivable/payable on loss/profit before income tax at 30% Add/deduct tax effect of: Other non-assessable items Other deductible items Tax losses (utilized) brought to account Income tax expense (benefit)

c) Deferred tax Revenue losses Temporary difference Deferred tax asset d) Income tax payable Withholding tax expenses Prior period tax payable Total tax payable

The above Statement should be read in conjunction with the accompanying notes 12

Cremorne Capital Limited – HVT Land Trust

Condensed Notes to and forming part of the Interim Financial Statements for the Half Year Ended 31 December 2021

3. Net assets attributable to unit holders (a) Movements in net assets attributable to unit holders

At beginning of the half year Units issued during the half year Units redeemed during the half year Units on issue at half year end 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

4.

31 December 2021 $ 6,641,686 1,237,900 7,879,586 (13,140)

30 June 2021 $ 6,933,790 6,933,790 (292,104)

7,866,446

6,641,686

Notes to the Statement of Cash flows Reconciliation of cash and cash equivalent 31 December 2021 $ Cash Deposits at call Total cash and cash equivalent

5.

30 June 2021 $

505,811 505,811

36,812 36,812

Biological Assets

Balance at the beginning of the period Revaluation movement Balance at the end of the period

31 December 2021 $

30 June 2021 $

3,687,000 3,687,000

3,687,000 3,687,000

The plantation was independently valued by Margules Groome, dated June 2021, based on their fair market value.

The above Statement should be read in conjunction with the accompanying notes 13

Cremorne Capital Limited – HVT Land Trust

Condensed Notes to and forming part of the Interim Financial Statements for the Half Year Ended 31 December 2021

6.

Property, Plant & Equipment 31 December 2021 $

Land Land – At independent valuation Closing Balance

30 June 2021 $

4,400,000 4,400,000

4,400,000 4,400,000

Building House – At cost Accumulated depreciation Closing Balance

158,414 (25,072) 133,342

158,414 (23,092) 135,322

Plant and Equipment Equipment – At cost Accumulated depreciation Closing Balance

57,861 (23,881) 33,980

57,862 (22,935) 34,927

4,567,322

4,570,249

Total Property, Plant & Equipment Movements in carrying amounts of property, plant and equipment Land $ Half Year Ended 31December 2021 Balance at the beginning of the period Revaluation Additions Depreciation Balance at the end of the period

Buildings $

4,400,000 -

135,322 (1,980)

4,400,000

133,342

Plant & Equipment $

Total $

34,927 (947) 33,980

4,570,249 (2,927) 4,567,322

Asset Revaluations

The plantation was independently valued by Margules Groome, dated June 2021, based on their fair market value.

7.

Commitments and contingencies

There are no commitments or contingencies.

The above Statement should be read in conjunction with the accompanying notes 14

Cremorne Capital Limited – HVT Land Trust

Condensed Notes to and forming part of the Interim Financial Statements for the Half Year Ended 31 December 2021

8.

After balance date events

Since 31 December 2021 there have been no other matters or circumstances not otherwise dealt with in the condensed report that have significant effect or may significantly affect the Scheme.

9.

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.

Additional Company Information 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

The above Statement should be read in conjunction with the accompanying notes 15