annual report 2014 - bendigo bank · 2 annual report lockmore financial services ltd for year...

Annual Report2014

Elmore Community Bank®BranchLockington Community Bank®BranchRochester Community Bank®Branch

ABN 41 106 113 599

Lockmore FinancialServices Ltd

Annual report Lockmore Financial Services Ltd 1

Contents

Chairman’s report 2

Manager’s report 7

Directors’ report 8

Auditor’s independence declaration 15

Financial statements 16

Notes to the financial statements 20

Directors’ declaration 41

Independent audit report 42

Annual report Lockmore Financial Services Ltd2

For year ending 30 June 2014

In our 11th year of operation I’m pleased to report that Lockmore Financial Services Ltd is in a strong financial

position. Our business book grew to be $158 million at 30 June 2014. This is an increase of $15.5 million or 11%

during the year.

Unfortunately, our income has not increased proportionately to this increase in our business book. This is the

result of:

• lowinterestratesresultinginsqueezedmargins,

• BendigoandAdelaideBank’s“RestoringtheBalance”strategytoaddresstheprofitsplitanomaliesresulting

from the Global Financial Crisis (GFC),

• worldwideeconomicuncertainty,and

• thecontinuedflowoneffectsofsettinguptheRochesterCommunity Bank®Branch.

This lack of significant increase in our income has been a source of frustration, annoyance and disappointment

over the last 12 months. The banking sector has had a tough year and our company is one of the more fortunate,

because our business book has and is continuing to grow.

Inthisenvironment,theBoardhashadtomakesomedifficultfinancialdecisions.Oneofthesewasthedecision

nottoholdaformalgrantsprogramduringtheyear(althoughwedidmakeindividualgrants:referbelow).Another

decision was not to pay a dividend to shareholders. These decisions were not made lightly. Making these difficult

decisions has helped ensure we made a $13,869 profit in 2013/14.

Returns to community

Even though we did not hold a formal grants program this year, Lockmore Financial Services Ltd has still returned

$107,000 to the community in donations, sponsorships, and grants. Sponsorship has been given in a number of

waysincluding:monetarycontributions,promotionalitems,feefreeuseoftheCommunityPOS,useofmarquees,

etc. Organisations who have benefited this year have include:

Grants: ($48,944)

• OLSHPrimarySchool,Elmore-Lights($1,200)

• HVMcKayRuralDiscoveryCentre-SolarPanels($4,500)Elmore&DistrictDoctors’Residence-External

Painting ($5,000)

• Lockington&DistrictBushNursingCentre-RehabilitationEquipment($3,280)

• Rochester4Rs-Watch&TellProjector&Screen($6,986)

• RochesterSES-CrashReponseproject($7,000)

• StJoseph’sPrimarySchool,Rochester-KitchenProject($10,978)

• CampaspeValleyCommunityCentre-SoundSystem($10,000)

Sponsorships/donations

• Bamwm/LockingtonUnitedCricketClub

• CampaspeGolfClubTournament

• DingeeLadiesNight

Chairman’s report


• Echuca-CommunityRespiteandLivingServices

• ElmoreBowlsClub

• ElmoreLadiesSandgreenGolfChampionship

• ElmoreFieldDays-AgArtCompetition

• ElmoreLionsClub

• ElmoreOLSHArtExhibition

• ElmorePrimarySchool

• ElmoreWHAMMarket

• GoornongFamilyFunDay(fundraiserforKristyThomsonappeal)

• LockingtonBushNursingCentre-CommunityCar

• NanneellaPrimarySchool

• RochesterBowlsClub

• RochesterGolfClub

• RochesterKidzcapers

• RochesterLawnTennisClub

• RochesterLionsClubConvention

• RochesterNetballClub-Invitational

• RochesterRSL

• RochesterTigersCricketClub

• RochesterUnitedCricketClub

• StrathallanBushdance

• PiggyVouchersforSchoolBankinginElmore,Goornong,Lockington,Nanneella&Rochester

Scholarships ($12,000)

• SportingScholarship-JoeAtley(Football)

• SportingScholarship-KellyShotton(AFLFootball)

• 2ndYearofTertiaryStudiesScholarship-JasonSmeaton

• 2ndYearofTertiaryStudiesScholarship-ChloeMacague

Strategic partnerships ($11,250)

ElmoreFieldDaysincludingsponsorshipoftheprestigiousAgArtCompetition

Goulburn Murray Cricket

LockmoreFinancialServicesLtdchosetocontributetoBendigoandAdelaideBank’scollaborativeBigger than

a bankmarketingcampaignthatmanyofyouwillhaveseenrecentlyonthetelevision-particularlyduringthe

2014 season of Masterchef, as well as on radio, etc. It is hope that the national coverage of this campaign will

significantlyboostBendigoandAdelaideBank’sbankingprofileandconsequentlyhavedirectbenefitsforour

business.

Chairman’s report (continued)


LockmoreFinancialServicesLtdcelebratedits10thBirthdayinAugust2013withaneveningattheElmore

MemorialHall.Approximately100guestsjoinedtheBoard,staffandBendigoandAdelaideBankstaffforan

evening where we showcased local talent, celebrated 10 years of achievements and also awarded a number of

community grants.

Twoofourbranchesmarkedtheir10thbirthdays-Elmore(3December)andLockington(3March)bycelebrating

withacommunityBBQs,cupcakes,balloonsandpiggyineachofthetwotowns.

The Directors

I’dliketothankBoardmemberswhohavecontributedtoyourCommunity Bank® company this year in a variety of

waysincluding:attendingmeetings,training,StateandNationalConferences,functions,andcommunityeventsas

wellasundertakingavarietyoftaskfrommaintenance,speakingatevents,andparticipatinginsub-committees

including:HumanResources,Marketing,AuditandFinance.

ThisyearwehadafewchangesontheBoardwithMathewDennisandChristopherGiffinretiring.IthankMathew

forhiscontributionsrepresentingtheRochestercommunity.ChristopherhadbeeninvolvedwiththeBoardforfive

years(initiallyontheFuelCommittee)andthenasaBoardmember.Iwishhimwellinhisfutureendeavoursbut

willmisshislogicalcritiquesandwarmsmile.RobWest(oneofourLockingtonDirectors)resignedduringtheyear

duetoincreasingworkcommitmentsawayfromhome.IalsowishRobthebestandhopethathemaylookto

renominatefortheBoardinthefutureifandwhenhiscircumstanceschange.

DuringtheyearourfoundingCompanySecretaryandoriginalSteeringCommitteeMember,HelenO’Sullivan,

resignfromtheBoard.HelenwaspassionateabouttheCommunity Bank® concept and the knowledge she had

developedoverthe10yearsasCompanySecretarywasvast.Helen’scontributiontothiscommunitycompanywas

wellaboveandbeyondthatexpectedofherroleandIsincerelythankherforallherhardwork,herenthusiasm

forcommunityandherattentiontodetailthatheldusallinsuchgoodstead.IwishHelenalltheverybestinher

future pursuits.

TheBoardhasalsogainedtwonewmembers-AmandaLogie(Rochester)whowasappointedatthe2013AGM,

andBradDrust(Elmore)whojoinedtheBoardinAprilthisyear.AmandaandBradbothbringdifferingskillsetsand

I welcome them to their roles.

The Staff

IextendabigthankyoutoourteamofdedicatedstaffwhocontinuetobeledbyourSeniorBranchManagerTracie

Kyne.Tracieandherteamarethefaceofthebusinessinthecommunity.Icommendthemallforthecommitment

and dedication to Lockmore Financial Services Ltd and your Community Bank®branches.Asourbusiness

continuestogrowsodoesourlevelofstaffing.We’veseenanumberofnewfacesthisyearwithstaffchanges,

andwe’vealsobeenpleasedtocelebrate10yearsofservicefortwoofourfoundingstaffmembers-Helen

McCaskieandTanyaNiven.

Weareveryfortunatetohaveastrongdynamicteamwhoareabletoassistourcustomerswithafullrangeof

financialservicesandproductsinElmore,LockingtonandRochester.AspecialthankyougoestoTracieKynefor

her outstanding leadership, her ability to motivate and inspire others and her continued dedication and passion for

the communities in which she live and works. It is rare to find a Manager who believes in her community and walks

the walk as well as talking the talk!

I’dalsoliketothankKristyNihillwhowasourMarketingDevelopmentManagerwholeftusduringthecourseof

theyear.Kristyworkedforourcompanyforanumberofyearsandweareverygratefulforallthatshedidtoraise

ourprofileandcreateanumberofconnectionsacrossourcommunities.Herworkhasresultedinmanygood

partnershipsandprojectsandsheleftagreatfoundationforustobuildon.Kristy’senthusiasmforherjoband

passion for community were a great asset and I wish her well in her future endeavours.



WithseveralstaffandDirectorresignations,theBoardtooktheopportunitytohaveamuchneededreviewofthe

company’sadministrationrequirements.Theserequirementshavecontinuedtogrowandchangeovertheyears

asourbusinesshasdeveloped.TheresultofthiswastoemployanAdministration/MarketingManagerwhois

alsoourCompanySecretary.AllannahJenkinshastakenonthisroleandhasbeenverybusyoverthelastyear

familiarisingherselfwithalltherequirementsofthisposition.SheisthefirstpointofcontactforMarketingand

sharequeries,andalsoresponsibleforourASICcompliancereporting.Allannahworksoutofouradministration

office.

Project Horizon

BeforeIsignoff,IwouldliketoletyouknowaboutwhatishappeningintheCommunity Bank® network across

Australiawhichcontinuestoevolve.ThisyearsawthecommencementofProjectHorizon-acomprehensivereview

of the Community Bank®model.BendigoandAdelaideBankhasprovidedtheresourcesforthisprojectandall

Community Bank® branches, including Lockmore Financial Services Ltd, has and is participating in developing

strategies for the future. There are four streams:

Examine: Wherehavewecomefromandwherearewenow,includingwhat’sworkedandwhathasn’t.

The Future:Whatdoesitlooklike?Isitbankingormore?Whatisbestpractice?

Effort & Reward:WhathastheGFCchanged?Isthecurrentmodelright?Shouldtherebechangesormultiple

versions?What’sfair,reasonableandequitable?

Transition/Roadmap: Oncewe’vegotaplanhowdoweimplementit?Howdoweensurewebringeveryone

along?

ItwillbeinterestingtoseewhatcomesoutofthisprojectandifthereareanychangestotheCommunity Bank®

model as we know it now.

To our shareholders

I take this opportunity to thank all of our shareholders who have invested in their community by purchasing shares

in Lockmore Financial Services Ltd, whether it be right back when we raised capital for Elmore and Lockington

Community Bank®branchesormorerecentlywithourRochesterCommunity Bank®Branchcampaign.

YourCommunity Bank® company aims to support shareholders with its profits (through dividends), and

the community (through grants, donations and sponsorships). Getting the right balance between dividends

to individuals and return of funds to community is always going to create some tension, particularly when

shareholders have different views on the priority between these.

However,theprimaryreasonthatmanyshareholders,includingmyself,purchasedsharesinaCommunity Bank®

company is investment in the local community. I know many people view the receipt of a financial return on those

sharesas“icingonthecake”!However,intimeswhenfinancesaretightandeveryoneiskeepingacloseeyeon

all their investments, dividends can become more important.

The reality is that due to a changing economic climate, in some years it will be difficult for Lockmore Financial

ServicesLtdtofundbothdividendsandcommunityprojects.TheBoardhasadutyofcaretobefiscally

responsible,andIknowthatallofyourDirectorstakethisresponsibilityveryseriously.

Ihopethatyouwillbearwithusthroughthegoodtimesandthenotsogood.YourBoardiscommittedtoensuring

the best outcomes for all our shareholders and our communities while maintaining a sustainable business that will

endure though both the good and tough times.



To our customers

Iextendaverybig“thankyou”andcommendyouforchoosingtobankwithusandformakingadifferenceinyour

community. The reality is the more customers we have, the more products each customer has, the more successful

ourbusinessis.Andthemoresuccessfulourbusinessis,themoreprofitswemakewhicharethenreturnedto

the community through dividends for shareholders, and grants, sponsorships and donations for community groups.

To those who are not yet customers

Whynotjumponboardandstartmakingadifferenceinyourcommunityjustbybankingwithus?Everyoneneeds

banking services and the Community Bank® model is one whereby everyone benefits.

Finally,IencourageyoualltocallintooneofourbranchesineitherElmore,LockingtonorRochesterandhavea

“financialhealthcheck”?areyouaccessingourfullrangeofservices,doyouevenknowaboutthem?

Withyourcontinuedsupport,theElmore,LockingtonandRochesterCommunity Bank® branches will continue to

grow, and our communities will continue to reap the rewards.

Louise Ross

Chairman



For year ending 30 June 2014

It is mypleasureasSeniorBranchManagertopresentthe2014AnnualReportfortheElmore,Lockingtonand

RochesterCommunity Bank® branches.

Our three Community Bank® branches have continued to make steady progress over the past year and are now

confident that we will make good profits going forward.

We’veincreasedourbusinessbyanother$15millionduringthefinancialyearwithourtotalbusinessnowsittingat

$158 million.

- Elmore $73.2million

- Lockington $30.5million

- Rochester $54.3million

Giventhepopulationofourthreeareas,ourtotalof3,235customerscouldcertainlystillincrease.Wehavehuge

growth potential ahead and encourage our current customers to recommend us to others.

Lending has been an area of growth for our branches over the 12 months where our home loan products are very

competitiveandhavebeenwellreceived.WehaveadedicatedBusinessBanker,WealthConsultantandRuralBank

Managerreadytoserviceexistingandnewcustomers.

Ourexperiencedstaffcontinuetodeliverexcellentservicethatismuchappreciatedbyourcustomerbaseandhas

enabledBendigoandAdelaideBanktoreceivehighcustomersatisfactionratings.We’vesaidgoodbyetoHelen

Barker,DebraHildebrandtandClaireHanna,althoughClairewillreturnfrommaternityleaveshortly.Wewelcome

totheteamFionaCuttrissandAdrianO’Brien.Pleasecallintothebranchesandwelcomeournewstaff.They

look incredible in their new uniforms and we’ve had many customers comment on how smart and professional

theylook.ItisourongoingcommitmenttoreturnfundstotheElmore,LockingtonandRochesterdistrictsand

their communities. Our team of staff are working towards unmatched customer service offering the full range

offinancialproductsandservices.Happyandloyalcustomerwhosupportusandreferusonhelpscreatea

successful company returning profits to these communities.

Iextendmythanksandappreciationtoourdedicatedandcommittedstaffandthankthemforanotherbusy

butrewardingyear.Ibelievewe’vecomeouttheothersideandwillnowenjoysomegoodprofitstoshareand

strengthen the small towns we work and live in.

IwouldalsoliketopassonmythankstoourDirectorswhoarevolunteers,providingtheirtimeandexpertiseto

ensuretheproficientsmoothrunningofapubliccompany.TotheChairmanandDirectors,theshareholdersand

customers that are advocates of our branches, your first hand accounts of the great service and products that are

available at your Community Bank® branches, continues to assist us in growing our business and then returning

profits to our communities.

AndfinallyIwishtothanktheshareholderswhostuckwithusfromthebeginningandtotheloyalcustomerswho

trustuswiththeirbankingeveryday.Withyoursupportwe’vebeenabletoreturnover$1millionoverthepast

11yearsinthewayofsponsorships,grantsanddividends.Anextraordinaryfigureandwhatadifferenceithas

madetoyourcommunities.Asshareholders,youarethekeytothecontinuedgrowthofourCommunity Bank®

branches.Canwedeepenourrelationshipwithyou?Pleasecontactourfriendlybranchstafftodiscussyour

financial and insurance needs.

Tracie Kyne

Branch Manager

Manager’s report


Directors’reportFor the financial year ended 30 June 2014

Yourdirectorssubmitthefinancialstatementsofthecompanyforthefinancialyearended30June2014.

Directors

The names and details of the company’s directors who held office during or since the end of the financial year:

Louise Frances Ross

Company Chair

Occupation:ResearchAssistant

Many years working in community development and particularly neighbourhood house sector. Currently a

ResearchAssistantwithFlindersUniversitySA.Hasbeeninvolvedinmanycommunityorganisationsoftenwith

executivepositionsfromLockingtonHeritageComplex,LockingtonSwimmingPool,SchoolCouncil,Lockington

CommunityCareCommittee,LockingtonDevelopmentCommittee.Directorsince2003.Tookoveras

Chairmanat2011AGM.

Committees:HumanResource;Marketing

Interest in shares: 1,876

Corinne Gaye Holmberg

Company Treasurer

Occupation:Administrator

Retiredbusinesspartner,heldofficeadministrationpositionsinwhichfinancialbookkeepingwasa

responsibility.Hasbeenactivelyinvolvedincommunityorganisationsoftenholdingexecutivepositions.

Directorsince2003,Treasurersince2006.

Committees:Finance,Audit


Graeme Trevor Wood

Director

Occupation: Farmer

Formerlyinvolvedinmanycommunitygroupsincludingpresidentoftheschoolcouncil,officebearerAPEXClub

andcurrentlyTreasurerofLockingtonCommunityCareCommitteeInc.Directorsince2003.

Committees:MarketingChair;Buildings/Maintenance;ShareRegistryOfficer.

Interest in shares: 626

Kathryn Carmel Taylor

Director

Occupation: Teacher

SecondaryEnglishTeacher,BachelorofEducation.PastPresidentofRochesterSwimmingClub,SchoolCouncil

memberatRochesterSecondaryCollegewheresheisalsoLiteracyManager.Own&run‘TaylorMadeCows’

withhusbandDarrensince2002.WasamemberoftheRochesterSteeringCommitteeanddelightedtobea

currentdirectorwithLockmoreFinancialServicesLimited.Directorsince2010.

Committees:Marketing,HumanResources,ViceChair



Directors’report(continued)

Directors (continued)

Sandra Margaret Peacock

Director

Occupation:BusinessOwner

Smallbusinessownerandofficemanager.CurrentlyinvolvedinRochesterMarketCommitteeSteering

CommitteeandRochesterCommunityHouse.AssistantSecretary.Directorsince2011.

Committees:Marketing&HumanResources


Christopher Bernard Dalton

Director

Occupation: Company Secretary

Chrishasheldavarietyoffinancialreporting,governance,complianceandriskmanagementroles.Heis

currentlyCorporateSecretaryatGoulburn-MurrayWater.ChrisholdsaBachelorofCommerceandpost

graduatequalificationsineconomics,accounting,financeandcorporategovernance.Heisafellowofthe

GovernanceInstituteofAustralasia,CharteredSecretariesInternational,theFinancialServicesInstituteof

AustralasiaandCPAAustralia.Directorsince2012.

Committees:Finance,Audit,Governance

Interestinshares:Nil

Amanda Irene Logie

Director(Appointed24October2013)

Occupation:Coordinator-RochesterCommunityHouse

Haspreviouslyworkedinbankingandinofficeadministration.CurrentlyCoordinatoratRochesterCommunity

Housewhichputsherina‘grassroots’positiontoassistwiththedevelopmentofhercommunity.Shehas

beenonnumerouscommitteesincludingtheSteeringCommitteefortheRochesterCommunity Bank®,

committeeforRochester(C4R),PresidentoftheRochesterLittleAthleticsCentre,memberofRochesterSkate

ParkSteeringCommitteeandisalsoPresidentoftheRegionalAssociationofNeighbourhoodandCommunity

Houses.

Committees:Nil


Bradley Adrian Drust

Director(Appointed7April2014)

Occupation:ExecutiveManager

Overtenyearsexperienceinnaturalresourcemanagementintechnicalandmanagementroles.Currently

ExecutiveManagerattheNorthCentralCatchmentManagementAuthority,leadingaprogramthatdelivers

community,environmentalandcomplianceprojects.BachelorofArts(Geography)/BachelorofScience

(EnvironmentalScience)andcurrentlycompletingpostgraduatequalificationsinBusinessAdministration.

Committees: Finance


Robert Michael West

Director(Resigned5May2014)

Occupation: Product Manager

AusKickCo-Ordinator,LieutenantLockingtonCFA,SchoolCouncillocalprimaryschool.

Committees: Policy Committee




Directors (continued)

Helen Dianne O’Sullivan

Director(Resigned24October2013)

Occupation: Teacher

BachelorofEducation(Primary).Hasbeenactivelyinvolvedinseveralcommunitygroupsovertheyears

includingholdingexecutivepositionsoncommittees.CompanySecretarysince2003.

Committees:Nil


Christopher Thomas Giffin

Director(Retired24October2013)

Occupation: Farmer

Involvedwithcompanyforfiveyears,initiallywiththeFuelCommitteethenasaBoardmemberfromOctober

2010.Hasservedonmanylocalorganisations,oftenholdingexecutivepositions.Hasdevelopedmany

businessmanagementskillsthroughinvolvementwithLockmore,professionaldevelopmentwithBendigoBank

andexperienceinmanagingafarm.

Committees:AssistantTreasurer,Finance,Audit&Fuel


Mathew John Dennis

Director(Retired24October2013)

Occupation: Facilities Manager

Managementworkcoversbuildingmaintenancecontracts,IT&capitalworkswhichrecentlyinvolvedthe

$21.7mdevelopmentatREDHS.Hasapassionforthelocalcommunitywithafocusonwellbeingand

health.WasamemberoftheRochesterCommunity Bank® Steering Committee and likes to take on roles of

leadership and is passionate about most things to which he turns his hand.

Committees:Buildings/Maintenance&HumanResource


Directorswereinofficeforthisentireyearunlessotherwisestated.

Nodirectorshavematerialinterestsincontractsorproposedcontractswiththecompany.

Company Secretary

ThecompanysecretarypositionwasheldbyDirectorHelenO’SullivanandnonDirectorAllannahJenkins.Helen

O’Sulllivanwasappointedtothepositionofsecretaryon25June2003.UnfortunatelyHelenwasforcedto

relinquishherroleasCompanySecretaryinSeptember2013duetoreasonsofillhealthandresignedasDirector

on 24 October 2013.

TheBoardappointedAllannahJenkinstothepositionofCompanySecretaryon4thNovember2013.Allannahwas

alreadyemployedasourAdministration/MarketingManagerandnowhasCompanySecretaryaddedtohertitle.

Allannah Frances Jenkins

CompanySecretary(nonDirector)

Occupation:Administration/Marketing/CompanySecretary

Hasmanyyearsexperienceincommunitydevelopment.Previouslyemployedbyfamilyservicesasaworker

andcounsellor.Hasworkedcloselyintheruralsectorindisasteremergencymanagementparticularlydrought

andfloodencompassingmentalhealthandtraumasituations.Hasbeeninvolvedincommunitygroupsoften

holdingexecutivepositions.

Committees: Marketing

Interest in Shares: 1000



Principal Activities

The principal activities of the company during the financial year were facilitating Community Bank® services under

managementrightstooperatefranchisedbranchesofBendigoandAdelaideBankLimited.

There has been no significant changes in the nature of these activities during the year.

Operating results

Operationshavecontinuedtoperforminlinewithexpectations.Theprofit/(loss)ofthecompanyforthefinancial

yearafterprovisionforincometaxwas:

Year ended 30 June 2014$

Year ended 30 June 2013$

13,869 (87,255)

Remuneration report

Directors’remuneration

For the year ended 30 June 2014 the directors received total remuneration, as follows:

$

LouiseFrancesRoss 8,333

CorinneGayeHolmberg 8,000

GraemeTrevorWood 1,200

KathrynCarmelTaylor 1,200

Sandra Margaret Peacock 1,200

ChristopherBernardDalton 1,200

BradleyAdrianDrust(Appointed7April2014) 300

AmandaIreneLogie(Appointed24October2013) 823

RobertMichaelWest(Resigned5May2014) 900

HelenDianneO'Sullivan(Resigned24October2013) 2,000

ChristopherThomasGiffin(Retired24October2013) -

MathewJohnDennis(Retired24October2013) -

25,156



Remuneration report (continued)

Directors’shareholdings

Balance at start of the year

Changes during the

year

Balance at end of the year

LouiseFrancesRoss 1,876 - 1,876

CorinneGayeHolmberg 3,751 - 3,751

GraemeTrevorWood 626 - 626

KathrynCarmelTaylor 1,000 - 1,000

Sandra Margaret Peacock 10,000 - 10,000

ChristopherBernardDalton - - -

AmandaIreneLogie(Appointed24October2013) 2,000 - 2,000

BradleyAdrianDrust(Appointed7April2014) - - -

RobertMichaelWest(Resigned5May2014) - - -

HelenDianneO'Sullivan(Resigned24October2013) 6,251 - 6,251

ChristopherThomasGiffin(Retired24October2013) 1,250 - 1,250

MathewJohnDennis(Retired24October2013) 1,000 - 1,000

Dividends

Nodividendwasdeclaredorpaidduringtheyearended30June2014.Inthepreviousyearended30June2013a

fully franked 5 cent dividend was declared and paid.

Significant changes in the state of affairs

In the opinion of the directors there were no significant changes in the state of affairs of the company that

occurred during the financial year under review not otherwise disclosed in this report or the financial statements.

Events since the end of the financial year

There are no matters or circumstances that have arisen since the end of the financial year that have significantly

affected or may significantly affect the operations of the company the results of those operations or the state of

affairs of the company, in future years.

Likely developments

The company will continue its policy of facilitating banking services to the community.

Environmental regulation

Thecompanyisnotsubjecttoanysignificantenvironmentalregulation.

Indemnification and insurance of directors and officers

The company has indemnified all directors and the manager in respect of liabilities to other persons (other than

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

exceptwheretheliabilityarisesoutofconductinvolvingthelackofgoodfaith.



Indemnification and insurance of directors and officers (continued)

Disclosureofthenatureoftheliabilityandtheamountofthepremiumisprohibitedbytheconfidentialityclauseof

the contract of insurance. The company has not provided any insurance for an auditor of the company or a related

body corporate.

Directors’ meetings

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

Board Meetings Attended

Committee Meetings Attended

Finance/Audit MarketingHuman

Resources

Eligible Attended Eligible Attended Eligible Attended Eligible Attended

LouiseFrancesRoss 11 8 - - 8 5 2 2

CorinneGayeHolmberg 11 11 1 1 8 7 - -

GraemeTrevorWood 11 11 - - 8 7 - -

KathrynCarmelTaylor 11 8 - - 8 6 2 2

Sandra Margaret Peacock 11 11 - - 8 8 2 2

ChristopherBernardDalton 11 10 1 1 - - - -

AmandaIreneLogie

(Appointed24October2013)7 6 - - - - - -

BradleyAdrianDrust

(Appointed7April2014)3 3 1 1 - - - -

RobertMichaelWest

(Resigned5May2014)8 2 - - - - - -

HelenDianneO'Sullivan

(Resigned24October2013)4 3 - - - - - -

Christopher Thomas Giffin

(Retired24October2013)4 3 - - - - - -

MathewJohnDennis

(Retired24October2013)4 1 - - - - - -

Proceedings on behalf of the company

NopersonhasappliedtotheCourtundersection237oftheCorporationsAct2001forleavetobringproceedings

on behalf of the company, or to intervene in any proceedings to which the company is a party, for the purpose of

taking responsibility on behalf of the company for all or part of those proceedings.

NoproceedingshavebeenbroughtorintervenedinonbehalfofthecompanywithleaveoftheCourtundersection

237 of the CorporationsAct2001.

Non audit services

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

auditor’sexpertiseandexperiencewiththecompanyareimportant.Detailsoftheamountspaidorpayabletothe

auditor(Andrew Frewin Stewart) for audit and non audit services provided during the year are set out in the notes

to the accounts.



Non audit services (continued)

The board of directors has considered the position, in accordance with the advice received from the audit

committeeandissatisfiedthattheprovisionofthenon-auditservicesiscompatiblewiththegeneralstandardof

independenceforauditorsimposedbytheCorporationsAct2001.

Thedirectorsaresatisfiedthattheprovisionofnon-auditservicesbytheauditor,assetoutinthenotesdidnot

compromisetheauditorindependencerequirementsoftheCorporationsAct2001forthefollowingreasons:

• allnon-auditserviceshavebeenreviewedbytheBoardtoensuretheydonotimpactontheimpartialityand

objectivityoftheauditor

• noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110

CodeofEthicsforProfessionalAccountants,includingreviewingorauditingtheauditor’sownwork,actingin

amanagementoradecision-makingcapacityforthecompany,actingasadvocateforthecompanyorjointly

sharing economic risk and rewards.

Auditor’s independence declaration

Acopyoftheauditor’sindependencedeclarationasrequiredundersection307CoftheCorporationsAct2001is

set out on page 15.

SignedinaccordancewitharesolutionoftheboardofdirectorsatElmore,Victoriaon21August2014.

Louise Frances Ross, Chairman


Auditor’sindependencedeclaration


Financial statementsStatement of Comprehensive Income for the year ended 30 June 2014

Note 2014 2013 $ $

Revenuefromordinaryactivities 4 1,241,914 1,177,869

Employeebenefitsexpense (714,565) (715,341)

Charitable donations, sponsorship, advertising and promotion (135,942) (185,383)

Occupancy and associated costs (63,634) (66,276)

Systems costs (68,668) (68,826)

Depreciationandamortisationexpense 5 (75,628) (75,327)

Financecosts 5 - (982)

Generaladministrationexpenses (166,665) (186,527)

Profit/(loss) before income tax (expense)/credit 16,812 (120,793)

Incometax(expense)/credit 6 (2,943) 33,538

Profit/(loss) after income tax (expense)/credit 13,869 (87,255)

Total comprehensive income for the year 13,869 (87,255)

Earnings per share for profit/(loss) attributable to the ordinary

shareholders of the company: ¢ ¢

Basicearningspershare 21 0.87 (5.49)

The accompanying notes form part of these financial statements.


Financial statements (continued)

BalanceSheet as at 30 June 2014

Note 2014 2013 $ $

ASSETS

Current Assets

Cashandcashequivalents 7 556,315 493,433

Trade and other receivables 8 92,259 88,963

Currenttaxasset 11 492 4,000

Total Current Assets 649,066 586,396

Non-Current Assets

Property,plantandequipment 9 286,591 290,180

Intangible assets 10 56,917 92,837

Deferredtaxassets 11 43,617 46,560

Total Non-Current Assets 387,125 429,577

Total Assets 1,036,191 1,015,973

LIABILITIES

Current Liabilities

Trade and other payables 12 30,583 29,568

Borrowings 13 2,083 1,822

Provisions 14 47,791 46,504

Total Current Liabilities 80,457 77,894

Non-Current Liabilities

Borrowings 13 3,472 5,545

Provisions 14 16,044 10,185

Total Non-Current Liabilities 19,516 15,730

Total Liabilities 99,973 93,624

Net Assets 936,218 922,349

Equity

Issued capital 15 1,344,664 1,344,664

Accumulatedlosses 16 (408,446) (422,315)

Total Equity 936,218 922,349




StatementofChangesinEquity for the year ended 30 June 2014

Issued Accumulated Total capital losses equity $ $ $

Balance at 1 July 2012 1,344,664 (255,599) 1,089,065

Total comprehensive income for the year - (87,255) (87,255)

Transactions with owners in their capacity as owners:

Sharesissuedduringperiod - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - (79,461) (79,461)

Balance at 30 June 2013 1,344,664 (422,315) 922,349

Balance at 1 July 2013 1,344,664 (422,315) 922,349

Total comprehensive income for the year - 13,869 13,869

Transactions with owners in their capacity as owners:

Sharesissuedduringperiod - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - - -

Balance at 30 June 2014 1,344,664 (408,446) 936,218




Statement of Cash Flows for the year ended 30 June 2014

Note 2014 2013 $ $

Cash flows from operating activities

Receiptsfromcustomers 1,345,835 1,268,595

Payments to suppliers and employees (1,264,086) (1,326,109)

Interest received 16,199 18,639

Interestpaid - (982)

Incometaxespaid 3,508 19,794

Net cash provided by/(used in) operating activities 17 101,456 (20,063)

Cash flows from investing activities

Paymentsforproperty,plantandequipment (36,762) (23,825)

Net cash used in investing activities (36,762) (23,825)

Cash flows from financing activities

Proceedsfromborrowings - 8,734

Repaymentofborrowings (1,812) (16,466)

Dividendspaid - (79,461)

Net cash used in financing activities (1,812) (87,193)

Net increase/(decrease) in cash held 62,882 (131,081)

Cashandcashequivalentsatthebeginningofthefinancialyear 493,433 624,514

Cash and cash equivalents at the end of the financial year 7(a) 556,315 493,433



NotestothefinancialstatementsFor year ended 30 June 2014

Note1.Summaryofsignificantaccountingpolicies

a) Basis of preparation

ThesegeneralpurposefinancialstatementshavebeenpreparedinaccordancewithAustralianAccounting

StandardsandInterpretationsissuedbytheAustralianAccountingStandardBoardsandtheCorporationsAct

2001.Thecompanyisafor-profitentityforthepurposeofpreparingthefinancialstatements.

CompliancewithIFRS

ThesefinancialstatementsandnotescomplywithInternationalFinancialReportingStandards(IFRS)asissuedby

theInternationalAccountingStandardsBoard(IASB).

Critical accounting estimates

Thepreparationofthefinancialstatementsrequirestheuseofcertaincriticalaccountingestimates.Italso

requiresmanagementtoexerciseitsjudgementintheprocessofapplyingthecompany’saccountingpolicies.

Theseareasinvolvingahigherdegreeofjudgementorcomplexities,orareaswhereassumptionsandestimates

are significant to the financial statements are disclosed in note 3.

Historicalcostconvention

The financial statements have been prepared under the historical cost convention on an accruals basis as

modified by the revaluation of financial assets and liabilities at fair value through profit or loss and where stated,

currentvaluationsofnon-currentassets.Costisbasedonthefairvaluesoftheconsiderationgiveninexchange

for assets.

Comparative figures

WhererequiredbyAustralianAccountingStandardscomparativefigureshavebeenadjustedtoconformwith

changes in presentation for the current financial year.

Adoptionofnewandamendedaccountingstandards

The company adopted the following standards and amendments, mandatory for the first time for the annual

reporting period commencing 1 July 2013:

• AASB2011-4AmendmentstoAustralianAccountingStandardstoRemoveIndividualKeyManagement

PersonnelDisclosureRequirements.

• AASB10ConsolidatedFinancialStatements,AASB11JointArrangements,AASB12DisclosureofInterests

inOtherEntities,AASB128InvestmentsinAssociatesandJointVentures,AASB127SeparateFinancial

StatementsandAASB2011-7AmendmentstoAustralianAccountingStandardsarisingfromtheConsolidation

andJointArrangementsStandards.

• AASB2012-9AmendmenttoAASB1048arisingfromtheWithdrawalofAustralianInterpretation1039.

• AASB2012-10AmendmentstoAustralianAccountingStandards–TransitionGuidanceandotherAmendments

whichprovidesanexemptionfromtherequirementtodisclosetheimpactofthechangeinaccountingpolicyon

the current period.

• AASB13FairValueMeasurementandAASB2011-8AmendmentstoAustralianAccountingStandardsarising

fromAASB13.


Notestothefinancialstatements(continued)

Note1.Summaryofsignificantaccountingpolicies(continued)

a) Basis of preparation (continued)

Adoptionofnewandamendedaccountingstandards(continued)

• AASB119EmployeeBenefits(September2011)andAASB2011-10AmendmentstoAustralianAccounting

StandardsarisingfromAASB119(September2011).

• AASB2012-5AmendmentstoAustralianAccountingStandardsarisingfromAnnualImprovements2009-2011

Cycle.

• AASB2012-2AmendmentstoAustralianAccountingStandards–Disclosures–OffsettingFinancialAssetsand

Financial Liabilities.

AASB2011-4removestheindividualkeymanagementpersonneldisclosurerequirementsinAASB124Related

PartyDisclosures.Asaresultthecompanynowonlydisclosesthekeymanagementpersonnelcompensationin

totalandforeachofthecategoriesrequiredinAASB124.Detailedkeymanagementpersonnelcompensationis

outlined in the remuneration report, included as part of the directors’ report.

TheadoptionofrevisedstandardAASB119hasresultedinachangetotheaccountingforthecompany’sannual

leaveobligations.Astheentitydoesnotexpectallannualleavetobetakenwithin12monthsoftherespective

servicebeingprovided,annualleaveobligationsarenowclassifiedaslong-termemployeebenefitsintheirentirety.

This changes the measurement of these obligations, as the entire obligation is now measured on a discounted

basisandnolongersplitintoashort-termandalong-termportion.However,theimpactofthischangeis

consideredimmaterialonthefinancialstatementsoverallasthemajorityoftheannualleaveisstillexpectedtobe

taken within 12 months after the end of the reporting period.

Noneoftheremainingnewstandardsandamendmentstostandardsthataremandatoryforthefirsttimeforthe

financial year beginning 1 July 2013 affected any of the amounts recognised in the current period or any prior

period and are not likely to affect future periods.

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

reporting period beginning 1 July 2013.

Economicdependency-BendigoandAdelaideBankLimited

ThecompanyhasenteredintoafranchiseagreementwithBendigoandAdelaideBankLimitedthatgovernsthe

management of the Community Bank®branchesatElmore,LockingtonandRochester,Victoria

ThebranchesoperateasafranchiseofBendigoandAdelaideBankLimited,usingthename“BendigoBank”and

thelogoandsystemofoperationsofBendigoandAdelaideBankLimited.ThecompanymanagestheCommunity

Bank®branchesonbehalfofBendigoandAdelaideBankLimited,howeveralltransactionswithcustomers

conducted through the Community Bank®branchesareeffectivelyconductedbetweenthecustomersandBendigo

andAdelaideBankLimited.

AlldepositsaremadewithBendigoandAdelaideBankLimited,andallpersonalandinvestmentproductsare

productsofBendigoandAdelaideBankLimited,withthecompanyfacilitatingtheprovisionofthoseproducts.All

loans, leases or hire purchase transactions, issues of new credit or debit cards, temporary or bridging finance and

anyothertransactionthatinvolvescreatinganewdebt,orincreasingorchangingthetermsofanexistingdebt

owedtoBendigoandAdelaideBankLimited,mustbeapprovedbyBendigoandAdelaideBankLimited.Allcredit

transactionsaremadewithBendigoandAdelaideBankLimited,andallcreditproductsareproductsofBendigo

andAdelaideBankLimited.




a) Basis of preparation (continued)

Economicdependency-BendigoandAdelaideBankLimited(continued)

BendigoandAdelaideBankLimitedprovidessignificantassistanceinestablishingandmaintainingtheCommunity

Bank® branches franchise operations. It also continues to provide ongoing management and operational support

and other assistance and guidance in relation to all aspects of the franchise operation, including advice in relation

to:

• adviceandassistanceinrelationtothedesign,layoutandfitoutoftheCommunity Bank® branches

• trainingforthebranchmanagerandotheremployeesinbanking,managementsystemsandinterfaceprotocol

• methodsandproceduresforthesaleofproductsandprovisionofservices

• securityandcashlogisticcontrols

• calculationofcompanyrevenueandpaymentofmanyoperatingandadministrativeexpenses

• theformulationandimplementationofadvertisingandpromotionalprograms

• salestechniquesandpropercustomerrelations.

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

financial statements. The accounting policies have been consistently applied, unless otherwise stated.

b) Revenue

Revenueisrecognisedwhentheamountofrevenuecanbereliablymeasured,itisprobablethatfutureeconomic

benefitswillflowtothecompanyandanyspecificcriteriahavebeenmet.Interestandfeerevenueisrecognised

whenearned.Thegainorlossondisposalofproperty,plantandequipmentisrecognisedonanetbasisandis

classifiedasincomeratherthanrevenue.AllrevenueisstatednetoftheamountofGoodsandServicesTax(GST).

Revenuecalculation

ThefranchiseagreementwithBendigoandAdelaideBankLimitedprovidesforthreetypesofrevenueearnedby

thecompany.First,thecompanyisentitledto50%ofthemonthlygrossmarginearnedbyBendigoandAdelaide

BankLimitedonproductsandservicesprovidedthroughthecompanythatareregardedas“daytoday”banking

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

gross margin is a negative amount), the company effectively incurs, and must bear, 50% of that loss.

ThesecondsourceofrevenueiscommissionpaidbyBendigoandAdelaideBankLimitedontheotherproducts

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

on various specified products and services, including insurance, financial planning, common fund, Sandhurst

Select,superannuation,commercialloanreferrals,productsreferredbyRuralBank,leasingreferrals,fixedloans

and certain term deposits (>90 days). The amount of commission payable can be varied in accordance with

theFranchiseAgreement(which,insomecases,permitscommissionstobevariedatthediscretionofBendigo

andAdelaideBankLimited).Thisdiscretionhasbeenexercisedonseveraloccasionspreviously.Forexamplein

February2011andFebruary2013BendigoandAdelaideBankLimitedreducedcommissionsontwocorebanking

productstoensureamoreevendistributionofincomebetweenBendigoandAdelaideBankLimitedandits

Community Bank®partners.Therevenuesharemodelissubjecttoregularreviewtoensurethattheinterestsof

BendigoandAdelaideBankLimitedandCommunity Bank® companies remain balanced.

Thethirdsourceofrevenueisaproportionofthefeesandcharges(i.e.whatarecommonlyreferredtoas‘bank

feesandcharges’)chargedtocustomers.Thisproportion,determinedbyBendigoandAdelaideBankLimited,may

varybetweenproductsandservicesandmaybeamendedbyBendigoandAdelaideBankLimitedfromtimeto

time.



c) Income tax

Currenttax

Currenttaxiscalculatedbyreferencetotheamountofincometaxespayableorrecoverableinrespectofthe

taxableprofitorlossfortheperiod.Itiscalculatedusingtaxratesandtaxlawsthathavebeenenactedor

substantivelyenactedbyreportingdate.Currenttaxforcurrentandpriorperiodsisrecognisedasaliability(or

asset)totheextentthatitisunpaid(orrefundable).

Deferredtax

Deferredtaxisaccountedforusingthebalancesheetliabilitymethodontemporarydifferencesarisingfrom

differences between the carrying amount of assets and liabilities in the financial statements and the corresponding

taxbaseofthoseitems.

Inprinciple,deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences.Deferredtaxassets

arerecognisedtotheextentthatitisprobablethatsufficienttaxableamountswillbeavailableagainstwhich

deductibletemporarydifferencesorunusedtaxlossesandtaxoffsetscanbeutilised.However,deferredtax

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

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

taxableincomenoraccountingprofit.Furthermore,adeferredtaxliabilityisnotrecognisedinrelationtotaxable

temporary differences arising from goodwill.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiod(s)when

theassetandliabilitygivingrisetothemarerealisedorsettled,basedontaxrates(andtaxlaws)thathavebeen

enactedorsubstantivelyenactedbyreportingdate.Themeasurementofdeferredtaxliabilitiesreflectsthetax

consequencesthatwouldfollowfromthemannerinwhichtheconsolidatedentityexpects,atthereportingdate,to

recover or settle the carrying amount of its assets and liabilities.

Deferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrenttaxand

whenthebalancesrelatetotaxesleviedbythesametaxationauthorityandthecompanyentityintendstosettle

itstaxassetsandliabilitiesonanetbasis.

Currentanddeferredtaxfortheperiod

Currentanddeferredtaxisrecognisedasanexpenseorincomeinthestatementofcomprehensiveincome,

exceptwhenitrelatestoitemscreditedordebitedtoequity,inwhichcasethedeferredtaxisalsorecognised

directlyinequity,orwhereitarisesfrominitialaccountingforabusinesscombination,inwhichcaseitistakeninto

accountinthedeterminationofgoodwillorexcess.

d) Employee entitlements

Provision is made for the company’s liability for employee benefits arising from services rendered by employees

tobalancedate.Employeebenefitsthatareexpectedtobesettledwithinoneyearhavebeenmeasuredatthe

amountsexpectedtobepaidwhentheliabilityissettled,plusrelatedon-costs.Employeebenefitspayablelater

thanoneyearhavebeenmeasuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadefor

those benefits.

The company contributes to a defined contribution plan. Contributions to employee superannuation funds are

charged against income as incurred.

e) Cash and cash equivalents

Forthepurposesofthestatementofcashflows,cashincludescashonhandandinbanksandinvestmentsin

moneymarketinstruments,netofoutstandingbankoverdrafts.Bankoverdraftsareshownwithinborrowingsin

current liabilities on the balance sheet.





f) Trade receivables and payables

Receivablesarecarriedattheiramountsdue.Thecollectabilityofdebtsisassessedatbalancedateandspecific

provision is made for any doubtful accounts. Liabilities for trade creditors and other amounts are carried at cost

that is the fair value of the consideration to be paid in the future for goods and services received, whether or not

billed to the company.

g) Property, plant and equipment

Plantandequipment,leaseholdimprovementsandequipmentunderfinanceleasearestatedatcostless

accumulateddepreciationandimpairment.Costincludesexpenditurethatisdirectlyattributabletotheacquisition

of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined

bydiscountingtheamountspayableinthefuturetotheirpresentvalueasatthedateofacquisition.

Depreciationisprovidedonproperty,plantandequipment,includingfreeholdbuildingsbutexcludingland.

Depreciationiscalculatedonastraightlinebasissoastowriteoffthenetcostofeachassetoveritsexpected

usefullifetoitsestimatedresidualvalue.Leaseholdimprovementsaredepreciatedattherateequivalentto

the available building allowance using the straight line method. The estimated useful lives, residual values and

depreciation method are reviewed at the end of each annual reporting period.

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

-leaseholdimprovements 40 years

-plantandequipment 2.5-40 years

-furnitureandfittings 4-40 years

h) Intangibles

ThefranchisefeepaidtoBendigoandAdelaideBankLimitedhasbeenrecordedatcostandisamortisedona

straight line basis over the life of the franchise agreement.

TherenewalprocessingfeepaidtoBendigoandAdelaideBankLimitedwhenrenewingthefranchiseagreement

has also been recorded at cost and is amortised on a straight line basis over the life of the franchise agreement.

i) Payment terms

Receivablesandpayablesarenoninterestbearingandgenerallyhavepaymenttermsofbetween30and90days.

j) Borrowings

Allloansareinitiallymeasuredattheprincipalamount.Interestisrecognisedasanexpenseasitaccrues.

k) Financial instruments

Recognitionandinitialmeasurement

Financial instruments, incorporating financial assets and financial liabilities are recognised when the entity

becomes a party to the contractual provisions of the instrument.

Financial instruments are initially measured at fair value plus transaction costs. Financial instruments are

classified and measured as set out below.




k) Financial instruments (continued)

Derecognition

Financialassetsarederecognisedwherethecontractualrightstoreceiptofcashflowsexpiresortheassetis

transferred to another party whereby the entity no longer has any significant continuing involvement in the risks

and benefits associated with the asset.

Classificationandsubsequentmeasurement

(i) Loans and receivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenot

quotedinanactivemarketandaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestrate

method.

(ii) Held-to-maturityinvestments

Held-to-maturityinvestmentsarenon-derivativefinancialassetsthathavefixedmaturitiesandfixedor

determinable payments, and it is the entity’s intention to hold these investments to maturity. They are

subsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.

(iii)Available-for-salefinancialassets

Available-for-salefinancialassetsarenon-derivativefinancialassetsthatareeithernotsuitabletobeclassified

into other categories of financial assets due to their nature, or they are designated as such by management.

Theycompriseinvestmentsintheequityofotherentitieswherethereisneitherafixedmaturitynorfixedor

determinable payments.

Theyaresubsequentlymeasuredatfairvaluewithchangesinsuchfairvalue(i.e.gainsorlosses)recognised

intheStatementofComprehensiveIncome.Available-for-salefinancialassetsareincludedinnon-current

assetsexceptwherethatareexpectedtobesoldwithin12monthsaftertheendofthereportingperiod.All

other financial assets are classified as current assets.

(iii) Financial liabilities

Non-derivativefinancialliabilities(excludingfinancialguarantees)aresubsequentlymeasuredatamortisedcost

using the effective interest rate method.

Impairment

Ateachreportingdate,theentityassesseswhetherthereisobjectiveevidencethatafinancialinstrumenthas

been impaired. Impairment losses are recognised in the statement of comprehensive income.

l) Leases

Leasesoffixedassetswheresubstantiallyalltherisksandbenefitsincidentaltotheownershipoftheasset,

but not the legal ownership are transferred to the company are classified as finance leases. Finance leases are

capitalisedbyrecordinganassetandaliabilityattheloweroftheamountsequaltothefairvalueoftheleased

property or the present value of the minimum lease payments, including any guaranteed residual values. Lease

paymentsareallocatedbetweenthereductionoftheleaseliabilityandtheleaseinterestexpensefortheperiod.

Leasedassetsaredepreciatedonastraight-linebasisovertheshorteroftheirestimatedusefullivesorthelease

term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,

arechargedasexpensesintheperiodsinwhichtheyareincurred.Leaseincentivesunderoperatingleasesare

recognisedasaliabilityandamortisedonastraight-linebasisoverthelifeoftheleaseterm.




m) Provisions

Provisionsarerecognisedwhentheeconomicentityhasalegal,equitableorconstructiveobligationtomakea

future sacrifice of economic benefits to other entities as a result of past transactions of other past events, it is

probablethatafuturesacrificeofeconomicbenefitswillberequiredandareliableestimatecanbemadeofthe

amount of the obligation.

Aprovisionfordividendsisnotrecognisedasaliabilityunlessthedividendsaredeclared,determinedorpublicly

recommended on or before the reporting date.

n) Contributed equity

Ordinarysharesarerecognisedatthefairvalueoftheconsiderationreceivedbythecompany.Anytransaction

costsarisingontheissueofordinarysharesarerecogniseddirectlyinequityasareductionoftheshareproceeds

received.

o) Earnings per share

Basicearningspershareiscalculatedbydividingtheprofitattributabletoequityholdersofthecompany,excluding

anycostsofservicingequityotherthanordinaryshares,bytheweightedaveragenumberofordinaryshares

outstandingduringthefinancialyear,adjustedforbonuselementsinordinarysharesissuedduringtheyear.

p) Goods and Services Tax

Revenues,expensesandassetsarerecognisednetoftheamountofGoodsandServicesTax(GST),exceptwhere

theamountofGSTincurredisnotrecoverablefromthetaxationauthority.Inthesecircumstances,theGSTis

recognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.

ReceivablesandpayablesarestatedwiththeamountofGSTincluded.ThenetamountofGSTrecoverablefrom,

orpayableto,thetaxationauthorityisincludedaspartofreceivablesorpayablesinthebalancesheet.Cashflows

areincludedinthestatementofcashflowsonagrossbasis.

TheGSTcomponentsofcashflowsarisingfrominvestingandfinancingactivitieswhicharerecoverablefrom,or

payableto,thetaxationauthorityareclassifiedasoperatingcashflows.

Note2.FinancialriskmanagementThecompany’sactivitiesexposeittoalimitedvarietyoffinancialrisks:marketrisk(includingcurrencyrisk,fair

valueinterestriskandpricerisk),creditrisk,liquidityriskandcashflowinterestraterisk.Thecompany’soverall

risk management program focuses on the unpredictability of financial markets and seeks to minimise potential

adverse effects on the financial performance of the entity. The entity does not use derivative instruments.

Riskmanagementiscarriedoutdirectlybytheboardofdirectors.

(i) Market risk

ThecompanyhasnoexposuretoanytransactionsdenominatedinacurrencyotherthanAustraliandollars.

(ii) Price risk

Thecompanyisnotexposedtoequitysecuritiespriceriskasitdoesnotholdinvestmentsforsaleoratfair

value.Thecompanyisnotexposedtocommoditypricerisk.



Note2.Financialriskmanagement(continued)

(iii) Credit risk

The company has no significant concentrations of credit risk. It has policies in place to ensure that customers

haveanappropriatecredithistory.Thecompany’sfranchiseagreementlimitsthecompany’screditexposureto

onefinancialinstitution,beingBendigoandAdelaideBankLimited.

(iv)Liquidityrisk

Prudentliquiditymanagementimpliesmaintainingsufficientcashandmarketablesecuritiesandtheavailability

offundingfromcreditfacilities.ThecompanybelievesthatitssoundrelationshipwithBendigoandAdelaide

BankLimitedmitigatesthisrisksignificantly.

(v) Cashflowandfairvalueinterestraterisk

Interest-bearingassetsareheldwithBendigoandAdelaideBankLimitedandsubjecttomovementsinmarket

interest.Interest-rateriskcouldalsoarisefromlong-termborrowings.Borrowingsissuedatvariablerates

exposethecompanytocashflowinterest-raterisk.Thecompanybelievesthatitssoundrelationshipwith

BendigoandAdelaideBankLimitedmitigatesthisrisksignificantly.

(vi) Capital management

The board’s policy is to maintain a strong capital base so as to sustain future development of the company.

The board of directors monitor the return on capital and the level of dividends to shareholders. Capital is

representedbytotalequityasrecordedinthebalancesheet.

In accordance with the franchise agreement, in any 12 month period, the funds distributed to shareholders

shallnotexceedthedistributionlimit:

The distribution limit is the greater of:

(a) 20% of the profit or funds of the franchisee otherwise available for distribution to shareholders in that 12

monthperiod;and

(b)subjecttotheavailabilityofdistributableprofits,therelevantrateofreturnmultipliedbytheaveragelevelof

sharecapitalofthefranchiseeoverthat12monthperiodwheretherelevantrateofreturnisequaltothe

weighted average interest rate on 90 day bank bills over that 12 month period plus 5%.

Theboardismanagingthegrowthofthebusinessinlinewiththisrequirement.Therearenootherexternally

imposedcapitalrequirements,althoughthenatureofthecompanyissuchthatamountswillbepaidintheform

of charitable donations and sponsorship. Charitable donations and sponsorship paid for the year ended 30 June

2014 can be seen in the statement of comprehensive income.

There were no changes in the company’s approach to capital management during the year.

Note3.CriticalaccountingestimatesandjudgementsEstimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,

includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheentityandthatarebelievedtobe

reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by

definition,seldomequaltherelatedactualresults.

Managementhasidentifiedthefollowingcriticalaccountingpoliciesforwhichsignificantjudgements,estimates

andassumptionsaremade.Actualresultsmaydifferfromtheseestimatesunderdifferentassumptionsand

conditions and may materially affect financial results or the financial position reported in future periods.



Note3.Criticalaccountingestimatesandjudgements(continued)

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

financial statements.

Taxation

Judgementisrequiredinassessingwhetherdeferredtaxassetsandcertaintaxliabilitiesarerecognisedon

thebalancesheet.Deferredtaxassets,includingthosearisingfromun-recoupedtaxlosses,capitallossesand

temporary differences, are recognised only where it is considered more likely than not that they will be recovered,

which is dependentonthegenerationofsufficientfuturetaxableprofits.

Assumptionsaboutthegenerationoffuturetaxableprofitsdependonmanagement’sestimatesoffuturecash

flows.Thesedependonestimatesoffuturesalesvolumes,operatingcosts,capitalexpenditure,dividendsand

othercapitalmanagementtransactions.Judgementsarealsorequiredabouttheapplicationofincometax

legislation.

Thesejudgementsandassumptionsaresubjecttoriskanduncertainty.Thereisthereforeapossibilitythat

changesincircumstanceswillalterexpectations,whichmayimpacttheamountofdeferredtaxassetsand

deferredtaxliabilitiesrecognisedonthebalancesheetandtheamountofothertaxlossesandtemporary

differences not yet recognised. In such circumstances, some or all of the carrying amount of recognised deferred

taxassetsandliabilitiesmayrequireadjustment,resultingincorrespondingcreditorchargetothestatementof

comprehensive income.

Estimation of useful lives of assets

The estimationoftheusefullivesofassetshasbeenbasedonhistoricalexperienceandtheconditionofthe

assetisassessedatleastonceperyearandconsideredagainsttheremainingusefullife.Adjustmentstouseful

lives are made when considered necessary.

Goodwill

Goodwillrepresentstheexcessofthecostofanacquisitionoverthefairvalueofthecompany’sshareofthenet

identifiableassetsoftheacquiredbranch/agencyatthedateofacquisition.Goodwillonacquisitionisincludedin

intangibleassets.Goodwillisnotamortised.Instead,goodwillistestedforimpairmentannually,ormorefrequently

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

impairment losses.

Thecalculationsrequiretheuseofassumptions.

Impairment of assets

Ateach reporting date, the company reviews the carrying amounts of its tangible and intangible assets that have

an indefinite useful life to determine whether there is any indication that those assets have suffered an impairment

loss.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodeterminethe

extentoftheimpairmentloss(ifany).Wheretheassetdoesnotgeneratecashflowsthatareindependentfrom

otherassets,theconsolidatedentityestimatestherecoverableamountofthecash-generatingunittowhichthe

asset belongs.

Recoverableamountisthehigheroffairvaluelesscoststosellandvalueinuse.Inassessingvalueinuse,the

estimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrent

market assessments of the time value of money and the risks specific to the asset for which the estimates of

futurecashflowshavenotbeenadjusted.

Iftherecoverableamountofanasset(orcash-generatingunit)isestimatedtobelessthanitscarryingamount,

thecarryingamountoftheasset(cash-generatingunit)isreducedtoitsrecoverableamount.Animpairmentloss

is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the

impairment loss is treated as a revaluation decrease.



Note3.Criticalaccountingestimatesandjudgements(continued)

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(cash-generatingunit)is

increasedtotherevisedestimateofitsrecoverableamount,butonlytotheextentthattheincreasedcarrying

amountdoesnotexceedthecarryingamountthatwouldhavebeendeterminedhadnoimpairmentlossbeen

recognisedfortheasset(cash-generatingunit)inprioryears.Areversalofanimpairmentlossisrecognised

in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the

impairment loss is treated as a revaluation increase.

2014 2013 $ $

Note4.RevenuefromordinaryactivitiesOperating activities:

-servicescommissions 1,218,562 1,149,697

-otherrevenue 7,267 7,992

Total revenue from operating activities 1,225,829 1,157,689

Non-operatingactivities:

-interestreceived 16,085 20,180

Total revenue from non-operating activities 16,085 20,180

Total revenues from ordinary activities 1,241,914 1,177,869

Note5.ExpensesDepreciationofnon-currentassets:

-plantandequipment 18,037 19,029

-leaseholdimprovements 21,671 20,378

Amortisationofnon-currentassets:

-franchiseagreement 5,320 5,320

-franchiserenewalfee 16,600 16,600

-establishmentfee 14,000 14,000

75,628 75,327

Finance costs:

-interestpaid - 982

Loss on disposal of non-current asset 643 -

Bad debts 426 94



Note6.Incometaxexpense/creditThecomponentsoftaxexpensecomprise:

-Currenttax

-Futureincometaxbenefitattributabletolosses - (30,652)

-Movementindeferredtax (2,609) (2,886)

-Recoupmentofprioryeartaxlosses 5,552 -

2,943 (33,538)

Theprimafacietaxonprofit/(loss)fromordinaryactivitiesbefore

incometaxisreconciledtotheincometaxexpenseasfollows:

Operating profit/(loss) 16,812 (120,793)

Primafacietaxonprofit/(loss)fromordinaryactivitiesat30% 5,044 (36,238)

Addtaxeffectof:

-non-deductibleexpenses - 4,800

-timingdifferenceexpenses 2,609 2,887

-otherdeductibleexpenses (2,101) (2,101)

5,552 (30,652)

Movementindeferredtax 11 (2,609) (2,886)

2,943 (33,538)

Note7.CashandcashequivalentsCash at bank and on hand 256,315 193,433

Term deposits 300,000 300,000

556,315 493,433

Note 7.(a) Reconciliation to cash flow statement

The above figures reconcile to the amount of cash shown in the

statementofcashflowsattheendofthefinancialyearasfollows:

Cash at bank and on hand 256,315 193,433

Term deposits 300,000 300,000

556,315 493,433

Note 2014 2013 $ $



Note8.TradeandotherreceivablesTrade receivables 83,102 79,705

Other receivables and accruals 9,157 9,258

92,259 88,963

Note9.Property,plantandequipmentPlant and equipment

Atcost 124,283 120,784

Less accumulated depreciation (87,193) (74,731)

37,090 46,053

Leasehold improvements

Atcost 310,253 310,253


208,267 229,938

Motor vehicle

Atcost 44,581 39,477


41,234 14,189

Total written down amount 286,591 290,180

Movements in carrying amounts:

Plant and equipment

Carrying amount at beginning 46,053 46,840

Additions 3,501 10,418

Disposals - -

Less:depreciationexpense (12,464) (11,205)

Carrying amount at end 37,090 46,053

Leasehold improvements


Additions - 13,407

Disposals - -



2014 2013 $ $



Motor vehicle


Additions 33,261 -

Disposals (643) -




Note10.IntangibleassetsFranchise fee

Atcost 86,600 86,600

Less: accumulated amortisation (80,876) (75,556)

5,724 11,044

Renewal processing fee

Atcost 83,000 83,000


6,113 22,713

Establishment fee (Rochester)

Atcost 70,000 70,000


31,500 45,500

Agency costs - payout

Atcost 13,580 13,580


Note9.Property,plantandequipment(continued)

2014 2013 $ $



Note11.TaxCurrent:

Income tax refundable 492 4,000

Non-Current:

Deferredtaxassets

-accruals 590 159

-employeeprovisions 19,150 17,006

-taxlossescarriedforward 25,100 30,652

44,840 47,817

Deferredtaxliability

-accruals 1,223 1,257

1,223 1,257

Net deferred tax asset 43,617 46,560

Movement in deferred tax charged to statement of

comprehensive income 2,943 (33,538)

Note12.TradeandotherpayablesTrade creditors 26,168 26,589

Other creditors and accruals 4,415 2,979

30,583 29,568

Note13.BorrowingsCurrent:

Bankoverdrafts

Lease liability 18 2,083 1,822

2,083 1,822

Non-Current:

Lease liability 18 3,472 5,545

3,472 5,545

Thechattelmortgageonthemotorvehiclehasbeenpaidouton10December2012.Anewphotocopierleasehas

beentakenoutinDecember2012.Interestischargedat14%andthefinalinstalmentisdueinNovember2016.

Note 2014 2013 $ $



Note14.ProvisionsCurrent:

Provision for annual leave 29,762 27,702

Provision for long service leave 18,029 18,802

47,791 46,504

Non-Current:

Provision for long service leave 16,044 10,185

Note15.Contributedequity1,589,227 ordinary shares fully paid (2013: 1,589,227) 1,409,233 1,409,233

Less:equityraisingexpenses(Elmore/Lockington) (29,553) (29,553)

Less:equityraisingexpenses(Rochester) (35,016) (35,016)

1,344,664 1,344,664

Rightsattachedtoshares

(a)Votingrights

Subjecttosomelimitedexceptions,eachmemberhastherighttovoteatageneralmeeting.

On a show of hands or a poll, each member attending the meeting (whether they are attending the meeting

inpersonorbyattorney,corporaterepresentativeorproxy)hasonevote,regardlessofthenumberofshares

held.However,whereapersonattendsameetinginpersonandisentitledtovoteinmorethanonecapacity

(forexample,thepersonisamemberandhasalsobeenappointedasproxyforanothermember)thatperson

mayonlyexerciseonevoteonashowofhands.Onapoll,thatpersonmayexerciseonevoteasamemberand

one vote for each other member that person represents as duly appointed attorney, corporate representative or

proxy.

Thepurposeofgivingeachmemberonlyonevote,regardlessofthenumberofsharesheld,istoreflectthe

nature of the company as a community based company, by providing that all members of the community who

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

sameabilitytoinfluencetheoperationofthecompany.

(b)Dividends

Generally, dividends are payable to members in proportion to the amount of the share capital paid up on the

sharesheldbythem,subjecttoanyspecialrightsandrestrictionsforthetimebeingattachingtoshares.The

franchiseagreementwithBendigoandAdelaideBankLimitedcontainsalimitonthelevelofprofitsorfunds

that may be distributed to shareholders. There is also a restriction on the payment of dividends to certain

shareholders if they have a prohibited shareholding interest (see below).

(c) Transfer

Generally,ordinarysharesarefreelytransferable.However,thedirectorshaveadiscretiontorefusetoregister

a transfer of shares.

Subjecttotheforegoing,shareholdersmaytransfersharesbyapropertransfereffectedinaccordancewiththe

company’sconstitutionandtheCorporationsAct2001.

2014 2013 $ $



Note15.Contributedequity(continued)

Prohibited shareholding interest

Apersonmustnothaveaprohibitedshareholdinginterestinthecompany.

In summary, a person has a prohibited shareholding interest if any of the following applies:

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

• Intheopinionoftheboardtheydonothaveacloseconnectiontothecommunityorcommunitiesinwhichthe

companypredominantlycarriesonbusiness(the“closeconnectiontest”).

• Wherethepersonisashareholder,afterthetransferofsharesinthecompanytothatpersonthenumberof

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

numberis694.Asatthedateofthisreport,thecompanyhad777shareholders.

Aswithvotingrights,thepurposeofthisprohibitedshareholdingprovisionistoreflectthecommunity-basednature

of the company.

Whereapersonhasaprohibitedshareholdinginterest,thevotinganddividendrightsattachingtothesharesin

which the person (and his or her associates) have a prohibited shareholding interest, are suspended.

Theboardhasthepowertorequestinformationfromapersonwhohas(orissuspectedbytheboardofhaving)

a legal or beneficial interest in any shares in the company or any voting power in the company, for the purpose of

determining whether a person has a prohibited shareholding interest. If the board becomes aware that a member

hasaprohibitedshareholdinginterest,itmustserveanoticerequiringthemember(orthemember’sassociate)to

dispose of the number of shares the board considers necessary to remedy the breach. If a person fails to comply

withsuchanoticewithinaspecifiedperiod(thatmustbebetweenthreeandsixmonths),theboardisauthorised

to sell the specified shares on behalf of that person. The holder will be entitled to the consideration from the sale

oftheshares,lessanyexpensesincurredbytheboardinsellingorotherwisedealingwiththoseshares.

Intheconstitution,membersacknowledgeandrecognisethattheexerciseofthepowersgiventotheboardmay

cause considerable disadvantage to individual members, but that such a result may be necessary to enforce the

prohibition.

2014 2013 $ $

Note16.AccumulatedlossesBalanceatthebeginningofthefinancialyear (422,315) (255,599)

Netprofit/(loss)fromordinaryactivitiesafterincometax 13,869 (87,255)

Dividendspaidorprovidedfor - (79,461)

Balance at the end of the financial year (408,446) (422,315)



Note17.StatementofcashflowsReconciliationofprofit/(loss)fromordinaryactivitiesaftertaxtonetcash

provided by/(used in) operating activities

Profit/(Loss)fromordinaryactivitiesafterincometax 13,869 (87,255)

Noncashitems:

-depreciation 39,708 39,407

-amortisation 35,920 35,920

-(profit)/lossondisposaloffixedasset 643 (2,139)

Changes in assets and liabilities:

-(increase)/decreaseinreceivables (3,296) 1,708

-(increase)/decreaseinotherassets 2,943 (2,886)

-increaseinpayables 1,015 361

-increaseinprovisions 7,146 12,636

-increase/(decrease)incurrenttaxliabilities 3,508 (17,815)

Net cash flows provided by/(used in) operating activities 101,456 (20,063)

Note18.LeasesFinance lease commitments

Payable-minimumleasepayments:

-notlaterthan12months 2,708 2,708

-between12monthsand5years 3,836 6,533

Minimum lease payments 6,544 9,241

Less future finance charges (989) (1,874)

Present value of minimum lease payments 5,555 7,367

Thefinanceleaseisofaphotocopier.CommencinginDecember2012,

it is a four year lease. Interest is charges at 14%.

Operating lease commitments

Non-cancellableoperatingleasescontractedforbutnotcapitalisedinthe

financial statements

Payable-minimumleasepayments:

-notlaterthan12months 39,379 18,027

-between12monthsand5years 161,167 -

-greaterthan5years 18,939 -

219,485 18,027

2014 2013 $ $



Note18.Leases(continued)

TheElmoreBranchleaseisanon-cancellableleasewithafive-yearterm,withrentpayablemonthlyinadvance.It

is in the last option period. The rent is reviewed annually with increases in line with CPI.

TheLockingtonBranchleaseisanon-cancellableleasewithafive-yearterm,withrentpayablemonthlyinadvance.

It is in the last option period. The rent is reviewed annually with increases in line with CPI.

TheRochesterBranchleaseisanon-cancellableleasewithathree-yearterm,withrentpayablemonthlyin

advance. The lease has two further 5 year term options left on the lease. The rent is reviewed annually with

increasesinlinewithCPIandonmarketvalueateachrenewaldate(3December2018).

2014 2013 $ $

Note19.Auditor’sremunerationAmountsreceivedordueandreceivablebytheauditorofthecompanyfor:

-auditandreviewservices 3,850 3,850

-shareregistryservices 1,500 4,080

-nonauditservices 4,129 4,412

9,479 12,342

Note20.Dividendspaidorprovideda. Dividends paid during the year

Current year interim dividend

Fullyfrankeddividend-Nilcents(2013:5cents)pershare - 79,461

Thetaxrateatwhichdividendshavebeenfrankedis30%(2013:30%).

b. Franking account balance

Frankingcreditsavailableforsubsequentreportingperiodsare:

- frankingaccountbalanceasattheendofthefinancialyear 6,468 9,976

- frankingcreditsthatwillarisefrompaymentofincometax

payable as at the end of the financial year (492) (4,000)

- frankingdebitsthatwillarisefromthepaymentofdividends

recognisedasaliabilityattheendofthefinancialyear -

Franking credits available for future financial reporting periods: 5,976 5,976

- frankingdebitsthatwillarisefrompaymentofdividendsproposed

or declared before the financial report was authorised for use but

notrecognisedasadistributiontoequityholdersduringtheperiod - -

Net franking credits available 5,976 5,976



Note21.Earningspershare

2014 $

2013 $

(a) Profit/(Loss)attributabletotheordinaryequityholdersofthecompany

used in calculating earnings per share 13,869 (87,255)

Number Number

(b) Weightedaveragenumberofordinarysharesusedasthedenominator

in calculating basic earnings per share1,589,227 1,589,227

Note22.EventsoccurringafterthereportingdateThere have been no events after the end of the financial year that would materially affect the financial statements.

Note23.ContingentliabilitiesandcontingentassetsThere were no contingent liabilities or contingent assets at the date of this report to affect the financial

statements.

Note24.SegmentreportingThe economic entity operates in the service sector where it facilitates Community Bank® services in Elmore,

LockingtonandRochester,VictoriapursuanttoafranchiseagreementwithBendigoandAdelaideBankLimited.

Note25.Registeredoffice/PrincipalplaceofbusinessTheentityisacompanylimitedbyshares,incorporatedanddomiciledinAustralia.Theregisteredofficeand

principal place of business is:

Registered Office Principal Place of Business

62RailwayPlace

ElmoreVic3558

62RailwayPlace

ElmoreVic3558

9-11LockingtonRoad

LockingtonVic3563

24 Gillies Street

RochesterVic3561



Note26.FinancialinstrumentsFinancialInstrumentCompositionandMaturityAnalysis

Thetablebelowreflectstheundiscountedcontractualsettlementtermsforallfinancialinstruments,aswellasthe

settlementperiodforinstrumentswithafixedperiodofmaturityandinterestrate.

Financial instrument

Floating interestFixed interest rate maturing in Non interest

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

2014$

2013$

2014$

2013$

2014$

2013$

2014$

2013$

2014$

2013$

2014%

2013%

Financial assets

Cash and cash equivalents

256,315 193,433 300,000 300,000 - - - - - - 3.16 3.86

Receivables - - - - - - - - 92,259 88,963 N/A N/A

Financial liabilities

Interest bearing liabilities

- - 5,555 7,367 - - - - - - 0.00 9.60

Payables - - - - - - - - 30,583 29,568 N/A N/A

NetFairValues

Thenetfairvaluesoffinancialassetsandliabilitiesapproximatethecarryingvaluesasdisclosedinthebalance

sheet. The company does not have any unrecognised financial instruments at the year end.

CreditRisk

Themaximumexposuretocreditriskatbalancedatetorecognisedfinancialassetsisthecarryingamountof

those assets as disclosed in the balance sheet and notes to the financial statements.

Therearenomaterialcreditriskexposurestoanysingledebtororgroupofdebtorsunderfinancialinstruments

entered into by the economic entity.

InterestRateRisk

Interestrateriskreferstotheriskthatthevalueofafinancialinstrumentorcashflowsassociatedwiththe

instrumentwillfluctuateduetochangesinmarketinterestrates.Interestrateriskarisesfromtheinterestbearing

financialassetsandliabilitiesinplacesubjecttovariableinterestrates,asoutlinedabove.

SensitivityAnalysis

Thecompanyhasperformedsensitivityanalysisrelatingtoitsexposuretointerestrateriskatbalancedate.

Thissensitivityanalysisdemonstratestheeffectonthecurrentyearresultsandequitywhichcouldresultfroma

change in interest rates.

Asat30June2014,theeffectonprofitandequityasaresultofchangesininterestrate,withallothervariables

remaining constant would be as follows:



Note26.Financialinstruments(continued)

SensitivityAnalysis(continued)

2014 $

2013 $

Change in profit/(loss)

Increase in interest rate by 1% 2,563 1,934

Decreaseininterestrateby1% 2,563 1,934

Changeinequity

Increase in interest rate by 1% 2,563 1,934

Decreaseininterestrateby1% 2,563 1,934


Directors’declarationIn accordance with a resolution of the directors of Lockmore Financial Services Limited, we state that:

In the opinion of the directors:

(a) thefinancialstatementsandnotesofthecompanyareinaccordancewiththeCorporationsAct2001,

including:

(i) giving a true and fair view of the company’s financial position as at 30 June 2014 and of its performance

forthefinancialyearendedonthatdate;and

(ii) complyingwithAccountingStandards,theCorporationsRegulations2001andothermandatoryprofessional

reportingrequirements;and

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

become due and payable.

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

withAccountingStandardAASB124RelatedPartyDisclosuresandtheCorporationsRegulations2001.

This declaration is made in accordance with a resolution of the board of directors.

Louise Frances Ross, Chairman

Signedonthe21stofAugust2014.


Independent audit report


Independent audit report (continued)

bendigobank.com.au

Elmore Community Bank®Branch 62 Railway Place, Elmore VIC 3558Phone: (03) 5432 6706 Fax: (03) 5432 6708

Lockington Community Bank® Branch9-11 Lockington Road, Lockington VIC 3563Phone: (03) 5486 2304 Fax: (03) 5486 2435

Rochester Community Bank® Branch24 Gillies Street, Rochester VIC 3561Phone: (03) 5484 3290 Fax: (03) 5484 3359

Franchisee: Lockmore Financial Services Ltd62 Railway Place, Elmore VIC 3558ABN: 41 106 113 599www.bendigobank.com.au/elmore

Share Registry: AFS & Associates Pty Ltd61-65 Bull Street, Bendigo VIC 3550PO Box 454, Bendigo VIC 3552Phone: (03) 5443 0344 Fax: (03) 5443 5304Email: [email protected] (BMPAR14021) (07/14)

annual report 2014 - bendigo bank · 2 annual report lockmore financial services ltd for year...

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