annual report 2015 - bendigo bankannual report lancefield & romsey community financial services...

Lancefield and Romsey Community Bank®branches

Annual Report2015

ABN 44 093 517 714

Lancefield & Romsey CommunityFinancial Services Limited

Annual report Lancefield & Romsey Community Financial Services Limited 1

Contents

Chairman’s report 2

Lancefield Manager’s report 4

Romsey Manager’s report 5

Directors’ report 6

Auditor’s independence declaration 12

Financial statements 13

Notes to the financial statements 17

Directors’ declaration 43

Independent audit report 44

Annual report Lancefield & Romsey Community Financial Services Limited2

For year ending 30 June 2015

The Mission Statement of Lancefield & Romsey Community Financial Services Limited states that the purpose of

our company is:

To make our community stronger by:

• operatinganefficientandprofitablecommunitybusiness,

• fundingprojectsforthefuturebenefitofthecommunity,

• providingareturntoshareholders.

Ifacompanyistobejudgedonhowwellitembracesandthendeliversonitsmissionstatement,thenIcanonly

rulethe2014/15financialyearasexceptionalandworthyofanA+grade.

Thisyear,thecompanyreportsaprofitbeforetaxationexpenseof$278,887whichisafterallowingforcommunity

grantsandsponsorshippayments,andofcourseournewlocationfortheRomseyCommunity Bank® Branch at

105MainStreet.Whilsttheopeningofthenewbranchhasbeenthehighestprofileeventoftheyear,somuch

morehashappenedthatreiteratesjusthowroundedandsignificantourCommunity Bank® branches are in our

communitiesofLancefieldandRomsey.

Thecompanyhasnowcommittedmorethan$900,000togroupsandprojectsoflocalcommunitybenefit,with

$730,000investedalreadyand$170,000heldinafundspecificallystructuredtoinvestinfuturelocalprojects.

Thisyearthecompanymadethelargestsinglecontributiontoanyspecificcommunitygroupprojectinour15-year

history,witha$40,000injectiontothecapitalprojectundertakenbytheLancefieldMechanicsInstitute.

Againthisyearthecompanyhaspaidafullyfrankeddividendtoshareholders,takingthetotaldividendspaid

todateto39centspershare.Thisisinadditiontotheearlierpaid25centspershareCapitalReturn.Since

payingthefirstdividend,eachyeartheshareholderdividendhaseitherremainedthesameorincreasedeachand

everyyear.Thetotalfinancialreturnstoshareholdersdirectlynowstandsat$646,848.Thisdemonstratesthe

company’scommitmenttorewardthosewhomadetheCommunity Bank® company possible here in Lancefield

andRomseysome15yearsago.

Ofcoursethesearetheoutcomesthatshowacompanycommittedtodeliveringonitsmissionstatementand

publicobjectives-butsuchoutcomesareonlymadepossiblebydecisionsandactionsofthosewithinthe

companywhoarepreparedtoworkforourbenefit.Tothatend,Iwouldliketothankanumberofgreatpeoplewho

arecommittedtomakingalastingdifferencetoourlocalcommunity.

• OurBranchManagers–RodBrowningandMichaelO’Gormancontinuetoshowcommitmentandpassionto

driveourtwolocalbranchesforward.Ourcustomerfeedbackcontinuestoremindusjusthowcriticalthesetwo

menaretoourbusinessgrowthgoals.

• OurBranchTeams–it’sonethingtohaveexcellentoperators(whichgoeswithoutsayinggiventheskillsof

ourteammembers).However,ourteammemberssetthemselvesapartintheirunwaveringcommitmenttothe

communityethos.Wearehumbledthatasignificantnumberofourbranchteamhavenowclockedoverfiveand

tenyearsofservice,with15years’serviceimminentforthosewhohavebeenwiththecompanysinceDayone

atLancefieldbackin2001.Suchstabilitybreedscomfortandconfidenceforlongtermcustomerrelationships.

Chairman’s report


• OurBoardSupportTeam–itiswithexcitementandsadnessthatwewelcomeKalmaTappinandSallyPeeler

toourteamfollowingthedecisionsbyAliceMcMahonandEmilyBladestomoveonaftergreatserviceto

thecompany.BothAliceandEmilywillbesorelymissed,havingbothbeentrailblazersinthegrowthand

developmentofourcompanyastheinitialExecutiveOfficerandMarketingConsultant.Beingfirstatanythingis

particularlychallengingandweareextremelygratefulfortheeffortsofbothAliceandEmily.InKalmaandSally

weintroducesomeoutstandingskillstothecompanytocomplementtheexistinginfrastructureandIamsure

bothwithbesignificantcontributorstothecommunitycompanyintheyearstocome.

• OurBoard–theintroductionofthreenewBoardmembersduringtheyearhasbroughtwithitanewsenseof

passion,excitementandskilltothecommunitycompany.Thisinfusioncomplementstheongoingstabilityof

long-termDirectorswhocontinuetocommittime,talentandcareforthelocalcommunitythatcannoteverbe

takenforgrantedorunderstated.

• OurRegionalManagementTeam–thesupportofJodieMcLeodasthecompany’sRegionalManagerhasbeen

outstandingoverthelast12months.

InwrappingupthisreportIwouldliketothankthecommunity,customersandshareholders–youarethereason

this company exists and underpins the purpose for the Community Bank®model.Peoplewillcomeandgohowever

the Community Bank®branchesareheretostay,offeringafullrangeofcompetitivebankingservicesherein

LancefieldandRomseyandcontinuingtobankproofourcommunity.

Ifyouarealreadyfullyonboardwethankyou,ifyouarepartiallyonboardIaskthatyougivethecompanythe

opportunitytofullyserviceyourbankingneeds,andifyouareyettogetonboard,jointhemovementtotakethis

companyandcommunityforward.

Tim McCarthy

Chairman

Chairman’s report (continued)



WhatafantasticyearforourLancefieldCommunity Bank®Branch,madesosuccessfulbythesupportofour

wonderfulcustomers.Another340customerscameonboard,openingsavingsaccounts,takingouthomeloans

torefinancefromotherinstitutionsorbuyinganewhome.Withrecordlowinterestrateswehavealsobeenableto

assistinvestorsthroughourwealthspecialistsandprotectthemwithourinsuranceproducts.

Throughtheterrificeffortsofallthestaff,wehaveincreasedourlendingbookby$8.2millionandourdepositsby

$1.6millioninthe2014/15financialyear.This,coupledwithourwealthproducts,sawtheLancefieldCommunity

Bank®Branchhitanothersignificantmilestone,reaching$90millioninoverallbusinessonthebooks.

Iwouldliketothankthewholeteamwhoworksowelltogether.Wehavebeenabletoreachtheseachievements

throughtheprofessionalismanddedicationofourstaff,whoprovideawiderangeoffinancialsolutionstoour

customers,inaconfidential,friendlymanner.

CongratulationstotheBoard,forthecourageandleadershipinbuildinganewpremisesinRomsey,whenacross

thewholebankingsystem,otherbanksarereducingtheirphysicalfootprint.

Ithasbeenanabsolutepleasuretobeinvolvedinthesevibrantandconnectedcommunities,attendingsporting

presentationevents,conductingforumsandsupportingcommunityprojects.Wecanonlydothiswithour

customers’support.

Foreveryoneinthecommunitywhodoesn’thaveusastheirmainbank,Iencourageyoutocomeandhavea

discussionwithus,aswetrulyareBigger than a bank.

Michael O’Gorman

Branch Manager

Lancefield Manager’s report



TheyearinreviewsawournewRomseyCommunity Bank®BranchpremisesopenedinFebruary2015.This

providedtangibleevidenceofourcommitmentasthebankofchoiceforthefutureofthetown.

AsaBendigoBankCommunity Bank®branch,wetakealongtermviewofourrole,andthatiswhywecontinue

toprovidefacetofacebankingsixdaysaweek.Ournewpremisesaredesignedforthefutureandtomeetthe

comfortandconvenienceofourcustomers.

Overthelast12monthswehavewitnessedacontinuinglowinterestrateenvironmentandaveryhighly

competitivebankingmarket,butdespitetheseconstraintswehavemanagedtogrowourbusinessonthebooksby

$9millionasat30June2015.Thiscompriseslendinggrowthof$6millionandaboosttodepositsof$3million.

This has brought our total holdings at Romsey Community Bank®Branchto$80million.

Duringthepastyearandmovingforward,weareincreasingouremphasisonprovidingourcustomerswitha

completefinancialpackagesolution.Weofferallthenormalbankservices,alongwithwealthmanagementadvice

throughourspecialiststaff.Anotherkeyfocusisourgeneralinsuranceofferings.

Competitionforbankingiscertainlystronganditisimportantthatwediversifyourincomestreamssothatwecan

continue to make profits to benefit our shareholders and generate funds to put back into our community through

sponsorshipsandgrants.

Iwouldliketothankallourteamwhomhaveworkedextremelyhardthroughouttheyearandingettingusintoour

newpremises.They,likeourcustomers,continuetomakeadifference,notonlyintheservicewhichtheyprovide,

buttothecommunityingeneral.

IwouldalsoliketorecogniseourshareholdersandtheimportancetheyplayinmakingRomseyandLancefield

Community Bank®branchesthesuccesstheyaretoday.Withoutthepeoplewhowerepreparedtoinvesttheir

moneyatthebeginning,therewouldbenoCommunity Bank®branchesinRomseyorLancefield.Moresignificantly,

ourcommunitieswouldnothavebenefitedastheyhavewiththesecurityofhavingbanksinourtownsforthelong

haul,andthefundingforprojectsofcommunitybenefitwhichhavemadeRomseyandLancefieldbetterplacesto

live.

Rod Browning

Branch Manager

Romsey Manager’s report


Directors’reportFor the financial year ended 30 June 2015

Yourdirectorssubmitthefinancialstatementsofthecompanyforthefinancialyearended30June2015.

Directors

Thenamesanddetailsofthecompany’sdirectorswhoheldofficeduringorsincetheendofthefinancialyear:

Timothy Gerard McCarthy

Chairperson

Occupation:Accountant

Qualifications,experienceandexpertise:CertifiedPractisingAccountant.BachelorofBusiness.Chairperson

since1August2011.FormerPresidentofRomseyFootballClub.CurrentTreasurerandformerlySecretary&

PresidentofRomseyCricketClub.LifeMemberoftheRomseyCricketClub.

Specialresponsibilities:Chairperson,MemberoftheFinanceand105MainStPanels.

Interestinshares:12,000

Maureen Patricia Wiltshire

DeputyChairperson

Occupation:LegalPractitioner

Qualifications,experienceandexpertise:BachelorofArts,BachelorofLaws&MastersofAppliedLaw.

Involvementincommunityorganisations.

Specialresponsibilities:DeputyChairpersonsince6July2010.Memberof105MainStPanel.


Kenneth Douglas Cribbes FAIM

Treasurer

Occupation:RetiredGrazier

Qualifications,experienceandexpertise:Marketing&financebackground.FormerDirectorofRoyalFreemasons

HomesLimited,FreemasonsHospital,EuroaHealthandPacificDunlopGroupCompanies.FellowAustralian

InstituteofManagement.

Specialresponsibilities:Treasurer,Chairof105Panel,MemberofFinancePanel,MemberofAudit&

GovernancePanel.

Interest in shares: Nil

David Ross Plunkett

Secretary

Occupation:LegalPractitioner

Qualifications,experienceandexpertise:PracticinglawyersincegraduatingwithanLLBin1994.General

CounselandCompanySecretaryforQenosPtyLtdsince2001,beingresponsibleforalllegalandgovernance

relatedmatters.DavidhaslivedinLancefieldsince2003.Hehas2childrenthatattendschoolsinthe

MacedonRegion.

Specialresponsibilities:Secretary,ChairofAudit&GovernancePanels,Memberof105Panel.



Directors’report(continued)

Directors (continued)

Russell David Pattinson

Director

Occupation: Management Consultant

Qualifications,experienceandexpertise:BachelorofAgriculturalScience(Hon).MasterofAppliedScience.

Localsportingandcommunityinterests.

Specialresponsibilities:ChairofMarketing&CommunityInvestmentPanels.


Graeme James Walker

Director

Occupation: Journalist

Qualifications,experienceandexpertise:Considerablepastnewspaperexperienceasajournalist,leadingin

toaseniorroleinGovernmentmedialiaisonandissuesmanagement.IneighthyearasPresidentofMoonee

ValleyCricketClub.LifeMemberofbothMooneeValleyCricketClubandNorthWestMetropolitanCricket

Association.MemberofNorthWestMetropolitanCricketAssociationjuniorscommittee(in13thyear).

Specialresponsibilities:Marketing&CommunityInvestmentPanels.


Vanessa Jane Adams

Director

Occupation:LocalGovernmentOfficer

Qualifications,experienceandexpertise:MastersinPublicPolicyAdministration(MPA).Livedinlocalarea

sinceDecember2010.

Specialresponsibilities:MemberofMarketing&CommunityInvestmentandAudit&GovernancePanels.


Michael Francis Meehan

Director

Occupation:UniversityProfessor

Qualifications,experienceandexpertise:BA(Monash),LLB(Adelaide),PhD(Cambridge).InvolvementinDeep

CreekLandcare.

Specialresponsibilities:MemberofMarketing&CommunityInvestmentPanel.


Andrea Knight

Director(Appointed8June2015)

Occupation:

Qualifications,experienceandexpertise:Experiencedprofessionalinthefieldsoflaw,recruitment,marketing/

businessdevelopmentandgeneralbusinessmanagement.AndreaisdegreequalifiedwithaBachelorof

Arts/Lawsdegrees,GraduateDiplomainSecondaryEducationandMasterofLaws.Andreawasadmittedto

practiceasalawyerin1994whereshethenpractisedinthefieldsoffamilylawandcommerciallitigation.In

January2001,AndrealeftlawtoworkintherecruitmentindustryandsinceApril2009,Andreahasassisted

herhusbandLlew,operateGraniteHillsWineryinBaynton.Andreahasbeenanactivememberofthelocal

communitysinceMay2000.

Specialresponsibilities:MemberoftheHumanResourcesCommittee.




Directors (continued)

Sandra Evaline Chestnutt

Director(Appointed8June2015)

Occupation:

Qualifications,experienceandexpertise:Averydiversecareerspanning20yearsinfinance,publicandprivate

administrationandprogrammanagementwithinthePublic,Non-GovernmentOrganisations(NGO)andPrivate

sectors,andwith14yearsexperienceinthedevelopmentfieldwiththeUnitedNations(UN)andinternational

NGOs.PastInternationalrolesheldincludeProjectCoordinatorSouthDarfurMerlinMedicalReliefinSouth

DarfurSudan,CountryProgramManagerSolomonIslandsSavetheChildrenAustralia,NationalExecutive

DirectorYWCAofPapuaNewGuinea,SmallBusiness&TourismManagerPermataSariHotelMaumereFlores

IndonesiaandProvincialCoordinatorCambodiaforPlanInternational&UNVandheldnumerousrolesinthe

UNMissionsinEastTimorandLiberia.PastrolesheldwithinAustraliaincludePresident/Chair/Directorfor

theDarfurAustraliaNetwork,NSWAssistantStateManagerDept.Environment,Water,Heritage&theArts

(DEWHA),WAAssistantStateManagerDepartmentCommunicationsInformationTechnology&theArts(DCITA),

ChiefExecutiveOfficerToomelahCo-OperativeLtd(Toomelah&BoggabillaIndigenousCommunities),Regional

&OperationsManagerNSWCo-OpHousingGroup,ManagerMortgageAdministrationCapitaFinancialGroup,

AdvanceBankAustraliaLimited/NSWBuildingSocietyoveraperiodofnineandahalfyearsrosethroughthe

ranksfromCashier,AssistantManager,BranchManager,BusinessDevelopmentManagertoSalesSupport

ManagerInvestmentAdvisoryDivisiontotheAdministrationManagerPropertyDept.Awarded:theElieWiesel

EthicsAwardfromtheUnitedNationsforworkundertakeninEastTimor(2002),HumanitarianOverseas

ServiceMedalAustralian(2001)andCertificateofAppreciationForeignAffairs(2000)fromtheAustralian

Government.

Specialresponsibilities:Memberof105MainStPanel.


Patrick Alan Holt

Director(Appointed14July2015)

Occupation:CEOoftheAccidentCompensationConciliationService

Qualifications,experienceandexpertise:2008:EnrolledasaBarrister&SolicitorbeforetheSupremeCourt

ofVictoria,Australia.Patrickisaseasonedattorneyandentrepreneurwithoverthirtyyearsinpracticedealing

withcommercialbusiness,company,international,bankinglawandlitigation.FormerUniversityLawLecturer,

JusticeCourtJudgeandfoundingboardmemberofabankintheUSA

2006:EnrolledasaBarrister&SolicitorbeforetheHighCourtofNewZealand;Christchurch,Canterbury

1983:AdmittedaslawyertoStateBarofMontana,SupremeCourtofMontana,andU.S.FederalDistrict

Court.

Special responsibilities: Nil


Directorswereinofficeforthisentireyearunlessotherwisestated.

Nodirectorshavematerialinterestsincontractsorproposedcontractswiththecompany.

Company Secretary

ThecompanysecretaryisDavidPlunkett.Davidwasappointedtothepositionofsecretaryon7November2011.

Principal Activities

TheprincipalactivitiesofthecompanyduringthefinancialyearwerefacilitatingCommunity Bank® services under

managementrightstooperatefranchisedbranchesofBendigoandAdelaideBankLimited.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringtheyear.



Operating results

Operationshavecontinuedtoperforminlinewithexpectations.Theprofit/(loss)ofthecompanyforthefinancial

yearafterprovisionforincometaxwas:

Year ended 30 June 2015$

Year ended 30 June 2014$

(50,403) 264,111

Remuneration report

Directors’remuneration

Nodirectorofthecompanyreceivesremunerationforservicesasacompanydirectororcommitteemember.

Therearenoexecutiveswithinthecompanywhoseremunerationisrequiredtobedisclosed.

Directors’shareholdings

Balance at start of the year

Changes during the

year

Balance at end of the year

TimothyGerardMcCarthy 12,000 - 12,000

MaureenPatriciaWiltshire 16,933 - 16,933

KennethDouglasCribbesFAIM - - -

DavidRossPlunkett - - -

RussellDavidPattinson 5,200 - 5,200

GraemeJamesWalker 4,600 - 4,600

VanessaJaneAdams - - -

Michael Francis Meehan - - -

SandraEvalineChestnutt(Appointed8June2015) - - -

AndreaKnight(Appointed8June2015) - - -

PatrickAlanHolt(Appointed14July2015) - - -

Dividends

Year ended 30 June 2015

Cents $

Dividendspaidintheyear 6 60,642



Significant changes in the state of affairs

Intheopinionofthedirectorstherewerenosignificantchangesinthestateofaffairsofthecompanythat

occurredduringthefinancialyearunderreviewnototherwisedisclosedinthisreportorthefinancialstatements.

Likely developments

Thecompanywillcontinueitspolicyoffacilitatingbankingservicestothecommunity.

Environmental regulation

Thecompanyisnotsubjecttoanysignificantenvironmentalregulation.

Indemnification and insurance of directors and officers

Thecompanyhasindemnifiedalldirectors,branchmanagersandtheexecutiveofficerinrespectofliabilitiesto

otherpersons(otherthanthecompanyorrelatedbodycorporate)thatmayarisefromtheirpositionasdirectors,

branchmanagersorexecutiveofficerofthecompanyexceptwheretheliabilityarisesoutofconductinvolvingthe

lackofgoodfaith.

Disclosureofthenatureoftheliabilityandtheamountofthepremiumisprohibitedbytheconfidentialityclauseof

thecontractofinsurance.Thecompanyhasnotprovidedanyinsuranceforanauditorofthecompanyorarelated

bodycorporate.

Directors’ meetings

Thenumberofdirectors’meetingsattendedbyeachofthedirectorsofthecompanyduringtheyearwere:

Board Meetings Attended

Eligible Attended

TimothyGerardMcCarthy 11 11

MaureenPatriciaWiltshire 11 8

KennethDouglasCribbesFAIM 11 8

DavidRossPlunkett 11 10

RussellDavidPattinson 11 7

GraemeJamesWalker 11 10

VanessaJaneAdams 11 8

Michael Francis Meehan 11 10

SandraEvalineChestnutt(Appointed8June2015) 1 1

AndreaKnight(Appointed8June2015) 1 1

PatrickAlanHolt(Appointed14July2015) - -

TheBoardhasfivesub-committeepanelsinplace;105MainSt(propertydevelopment),Finance,Human

Resources,CommunityInvestmentandMarketingandAuditandGovernance.Thesub-committeesmeetonanas

needsbasisandpresentreports/recommendationstothemonthlyBoardmeetingswhererequired.



Proceedings on behalf of the company

NopersonhasappliedtotheCourtundersection237oftheCorporationsAct2001forleavetobringproceedings

onbehalfofthecompany,ortointerveneinanyproceedingstowhichthecompanyisaparty,forthepurposeof

takingresponsibilityonbehalfofthecompanyforallorpartofthoseproceedings.

NoproceedingshavebeenbroughtorintervenedinonbehalfofthecompanywithleaveoftheCourtundersection

237oftheCorporationsAct2001.

Non audit services

Thecompanymaydecidetoemploytheauditoronassignmentsadditionaltotheirstatutorydutieswherethe

auditor’sexpertiseandexperiencewiththecompanyareimportant.Detailsoftheamountspaidorpayabletothe

auditor(AndrewFrewinStewart)forauditandnonauditservicesprovidedduringtheyeararesetoutinthenotes

totheaccounts.

Theboardofdirectorshasconsideredthepositionandissatisfiedthattheprovisionofthenon-auditservicesis

compatiblewiththegeneralstandardofindependenceforauditorsimposedbytheCorporationsAct2001.

Thedirectorsaresatisfiedthattheprovisionofnon-auditservicesbytheauditor,assetoutinthenotesdidnot

compromisetheauditorindependencerequirementsoftheCorporationsAct2001forthefollowingreasons:

• havingreviewedtheauditorsprotocolsinrelationtoindependenceandnon-auditservices,theboardis

comfortablethattheprovisionofsuchserviceswillnotimpactupontheimpartialityandobjectivityofthe

auditor

• noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110

CodeofEthicsforProfessionalAccountants,includingreviewingorauditingtheauditor’sownwork,actingin

amanagementoradecision-makingcapacityforthecompany,actingasadvocateforthecompanyorjointly

sharingeconomicriskandrewards.

Auditor’s independence declaration

Acopyoftheauditor’sindependencedeclarationasrequiredundersection307CoftheCorporationsAct2001is

setoutonpage12.

SignedinaccordancewitharesolutionoftheboardofdirectorsatRomsey,Victoriaon24September2015.

Timothy Gerard McCarthy,

Chairman


Auditor’sindependencedeclaration


Financial statementsStatementofProfitorLossandOtherComprehensiveIncome for the year ended 30 June 2015

Notes 2015 2014 $ $

Revenuefromordinaryactivities 4 1,502,788 1,445,073

Employeebenefitsexpense (686,825) (639,240)

Charitabledonations,sponsorship,advertisingandpromotion (147,359) (114,415)

Occupancyandassociatedcosts (90,803) (76,304)

Systemscosts (46,176) (37,589)

Depreciationandamortisationexpense 5 (39,043) (41,541)

Financecosts 5 (7,322) (1,358)

Generaladministrationexpenses (206,373) (157,325)

Profit before income tax expense 278,887 377,301

Incometaxexpense 6 (85,402) (113,190)

Profit after income tax expense 193,485 264,111

Revaluationofinvestments 9 (243,888) -

Total Other Comprehensive Income (243,888) -

Total comprehensive income for the year (50,403) 264,111

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

shareholders of the company: ¢ ¢

Basicearningspershare 23 (5.19) 27.21

Theaccompanyingnotesformpartofthesefinancialstatements.


Financial statements (continued)

Balance Sheet as at 30 June 2015

Notes 2015 2014 $ $

ASSETS

Current Assets

Cashandcashequivalents 7 115,093 183,947

Tradeandotherreceivables 8 128,270 123,164

Currenttaxasset 11 34,792 -

Total Current Assets 278,155 307,111

Non-Current Assets

Property,plantandequipment 9 1,353,048 1,023,577

Intangibleassets 10 10,472 34,356

Deferredtaxasset 11 32,963 31,559

Total Non-Current Assets 1,396,483 1,089,492

Total Assets 1,674,638 1,396,603

LIABILITIES

Current Liabilities

Tradeandotherpayables 12 173,082 91,647

Currenttaxliabilities 11 - 13,681

Borrowings 13 7,106 17,882

Provisions 14 101,386 101,065

Total Current Liabilities 281,574 224,275

Non-Current Liabilities

Borrowings 13 332,206 7,106

Provisions 14 11,312 4,631

Total Non-Current Liabilities 343,518 11,737

Total Liabilities 625,092 236,012

Net Assets 1,049,546 1,160,591

Equity

Issuedcapital 15 667,869 667,869

Retainedearnings 16 381,677 492,722

Total Equity 1,049,546 1,160,591




StatementofChangesinEquity for the year ended 30 June 2015

Issued Retained Total capital earnings equity $ $ $

Balance at 1 July 2013 667,869 289,253 957,122

Total comprehensive income for the year - 264,111 264,111

Transactions with owners in their capacity as owners:

Sharesissuedduringperiod - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - (60,642) (60,642)

Balance at 30 June 2014 667,869 492,722 1,160,591

Balance at 1 July 2014 667,869 492,722 1,160,591

Total comprehensive income for the year - (50,403) (50,403)

Transactions with owners in their capacity as owners:

Sharesissuedduringperiod - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - (60,642) (60,642)

Balance at 30 June 2015 667,869 381,677 1,049,546




StatementofCashFlows for the year ended 30 June 2015

Notes 2015 2014 $ $

Cash flows from operating activities

Receiptsfromcustomers 1,646,524 1,575,315

Paymentstosuppliersandemployees (1,290,361) (1,166,630)

Interestreceived 1,624 11,096

Interestpaid (7,322) 104

Incometaxespaid (135,279) (112,208)

Net cash provided by operating activities 17 215,186 307,677

Cash flows from investing activities

Paymentsforproperty,plantandequipment (537,722) (73,309)

Net cash provided by/(used in) investing activities (537,722) (73,309)

Cash flows from financing activities

Proceedsfromborrowings 649,271 -

Repaymentofborrowings (334,947) (388,835)

Dividendspaid (60,642) (60,642)

Net cash provided by/(used in) financing activities 253,682 (449,477)

Net increase/(decrease) in cash held (68,854) (215,109)

Cashandcashequivalentsatthebeginningofthefinancialyear 183,947 399,056

Cash and cash equivalents at the end of the financial year 7(a) 115,093 183,947



Notes to the financial statementsFor year ended 30 June 2015

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

aresignificanttothefinancialstatementsaredisclosedinnote3.

Historicalcostconvention

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

modifiedbytherevaluationoffinancialassetsandliabilitiesatfairvaluethroughprofitorlossandwherestated,

currentvaluationsofnon-currentassets.Costisbasedonthefairvaluesoftheconsiderationgiveninexchange

forassets.

Comparative figures

WhererequiredbyAustralianAccountingStandardscomparativefigureshavebeenadjustedtoconformwith

changesinpresentationforthecurrentfinancialyear.

Applicationofnewandamendedaccountingstandards

ThefollowingamendmentstoaccountingstandardsandanewinterpretationissuedbytheAustralianAccounting

StandardsBoard(AASB)becamemandatorilyeffectiveforaccountingperiodsbeginningonorafter1July2014,

andarethereforerelevantforthecurrentfinancialyear.

• AASB2012-3AmendmentstoAustralianAccountingStandards(AASB132)–OffsettingFinancialAssetsand

FinancialLiabilities.

• AASB2013-3AmendmentstoAASB136–RecoverableAmountDisclosuresforNon-FinancialAssets.

• AASB2013-4AmendmentstoAustralianAccountingStandards(AASB139)–NovationofDerivativesand

ContinuationofHedgeAccounting.

• AASB2013-5AmendmentstoAustralianAccountingStandards(AASB10)–InvestmentEntities.

• AASB2014-1AmendmentstoAustralianAccountingStandards(PartA:AnnualImprovements2010-2012and

2011-2013Cycles).

• AASB2014-1AmendmentstoAustralianAccountingStandards(PartB:DefinedBenefitPlans:Employee

ContributionsAmendmentstoAASB119).


Notes to the financial statements (continued)

Note1.Summaryofsignificantaccountingpolicies(continued)

a) Basis of preparation (continued)

Applicationofnewandamendedaccountingstandards(continued)

• Interpretation21Levies.

• AASB1031Materiality,AASB2013-9AmendmentstoAustralianAccountingStandards–Conceptual

Framework,MaterialityandFinancialInstruments(PartB:Materiality),AASB2014-1AmendmentstoAustralian

AccountingStandards(PartC:Materiality).

NoneoftheamendmentstoaccountingstandardsorthenewinterpretationissuedbytheAustralianAccounting

StandardsBoard(AASB)thatbecamemandatorilyeffectiveforaccountingperiodsbeginningonorafter1July

2014,materiallyaffectedanyoftheamountsrecognisedinthecurrentperiodoranypriorperiodandarenotlikely

toaffectfutureperiods.

ThefollowingaccountingstandardsandinterpretationsissuedbytheAustralianAccountingStandardsBoard

(AASB)becomeeffectiveinfutureaccountingperiods.

Effective for annual reporting periods beginning on or after

AASB9FinancialInstruments,andtherelevantamendingstandards. 1January2018

AASB15RevenuefromContractswithCustomersandAASB2014-5

AmendmentstoAustralianAccountingStandardsarisingfromAASB15.1January2017

AASB2014-3AmendmentstoAustralianAccountingStandards–Accounting

forAcquisitionsofInterestsinJointOperations.1January2016

AASB2014-4AmendmentstoAustralianAccountingStandards–Clarification

ofAcceptableMethodsofDepreciationandAmortisation.1January2016

AASB2014-6AmendmentstoAustralianAccountingStandards–Agriculture:

BearerPlants.1January2016

AASB2014-9AmendmentstoAustralianAccountingStandards–Equity

MethodinSeparateFinancialStatements.1January2016

AASB2014-10AmendmentstoAustralianAccountingStandards–Sale

orContributionofAssetsbetweenanInvestoranditsAssociateorJoint

Venture.

1January2016

AASB2015-1AmendmentstoAustralianAccountingStandards–Annual

ImprovementstoAustralianAccountingStandards2012-2014Cycle.1January2016

AASB2015-2AmendmentstoAustralianAccountingStandards–Disclosure

Initiative:AmendmentstoAASB101.1January2016

AASB2015-3AmendmentstoAustralianAccountingStandardsarisingfrom

theWithdrawalofAASB1031Materiality.1 July 2015

AASB2015-4AmendmentstoAustralianAccountingStandards–Financial

ReportingRequirementsforAustralianGroupswithaForeignParent.1 July 2015

AASB2015-5AmendmentstoAustralianAccountingStandards–Investment

Entities:ApplyingtheConsolidationException.1January2016




a) Basis of preparation (continued)

Applicationofnewandamendedaccountingstandards(continued)

The company has not elected to apply any accounting standards or interpretations before their mandatory

operativedatefortheannualreportingperiodbeginning1July2014.Thereforetheabovementionedaccounting

standardsorinterpretationshavenoimpactonamountsrecognisedinthecurrentperiodoranypriorperiod.

Economicdependency-BendigoandAdelaideBankLimited

ThecompanyhasenteredintoafranchiseagreementwithBendigoandAdelaideBankLimitedthatgovernsthe

management of the Community Bank®branchesatLancefieldandRomsey,Victoria.

ThebranchesoperateasafranchiseofBendigoandAdelaideBankLimited,usingthename“BendigoBank”and

thelogoandsystemofoperationsofBendigoandAdelaideBankLimited.ThecompanymanagestheCommunity

Bank®branchesonbehalfofBendigoandAdelaideBankLimited,howeveralltransactionswithcustomers

conducted through the Community Bank®branchesareeffectivelyconductedbetweenthecustomersandBendigo

andAdelaideBankLimited.

AlldepositsaremadewithBendigoandAdelaideBankLimited,andallpersonalandinvestmentproductsare

productsofBendigoandAdelaideBankLimited,withthecompanyfacilitatingtheprovisionofthoseproducts.All

loans,leasesorhirepurchasetransactions,issuesofnewcreditordebitcards,temporaryorbridgingfinanceand

anyothertransactionthatinvolvescreatinganewdebt,orincreasingorchangingthetermsofanexistingdebt

owedtoBendigoandAdelaideBankLimited,mustbeapprovedbyBendigoandAdelaideBankLimited.Allcredit

transactionsaremadewithBendigoandAdelaideBankLimited,andallcreditproductsareproductsofBendigo

andAdelaideBankLimited.

Thecompanypromotesandsellstheproductsandservices,butisnotapartytothetransaction.

Thecreditrisk(i.e.theriskthatacustomerwillnotmakerepayments)isfortherelevantBendigoandAdelaide

BankLimitedentitytobearaslongasthecompanyhascompliedwiththeappropriateproceduresandrelevant

obligationsandhasnotexercisedadiscretioningrantingorextendingcredit.

BendigoandAdelaideBankLimitedprovidessignificantassistanceinestablishingandmaintainingtheCommunity

Bank®branchesfranchiseoperations.Italsocontinuestoprovideongoingmanagementandoperationalsupport

andotherassistanceandguidanceinrelationtoallaspectsofthefranchiseoperation,includingadviceinrelation

to:

• adviceandassistanceinrelationtothedesign,layoutandfitoutoftheCommunity Bank® branch

• trainingforthebranchmanagerandotheremployeesinbanking,managementsystemsandinterfaceprotocol

• methodsandproceduresforthesaleofproductsandprovisionofservices

• securityandcashlogisticcontrols

• calculationofcompanyrevenueandpaymentofmanyoperatingandadministrativeexpenses

• theformulationandimplementationofadvertisingandpromotionalprograms

• salestechniquesandpropercustomerrelations.

Thefollowingisasummaryofthematerialaccountingpoliciesadoptedbythecompanyinthepreparationofthe

financialstatements.Theaccountingpolicieshavebeenconsistentlyapplied,unlessotherwisestated.




b) Revenue

Revenueisrecognisedwhentheamountofrevenuecanbereliablymeasured,itisprobablethatfutureeconomic

benefitswillflowtothecompanyandanyspecificcriteriahavebeenmet.Interestandfeerevenueisrecognised

whenearned.Thegainorlossondisposalofproperty,plantandequipmentisrecognisedonanetbasisandis

classifiedasincomeratherthanrevenue.AllrevenueisstatednetoftheamountofGoodsandServicesTax(GST).

Revenue calculation

OvertheperiodfromSeptember2013toFebruary2015,BendigoandAdelaideBankLimitedconducteda

reviewoftheCommunity Bank®model,knownas‘ProjectHorizon’.Thiswasconductedinconsultationwiththe

Community Bankingnetwork.TheobjectiveofthereviewwastodevelopasharedvisionoftheCommunity Bank®

modelthatpositionsitforsuccessnowandforthefuture.

Theoutcomeofthatreviewisthatthefundamentalfranchisemodelandcommunityparticipationremain

unchanged.Changestobeimplementedoverathreeyearperiodreflectanumberofthemes,includingacultureof

innovation,agilityandflexibility,networkcollaboration,directorandstaffdevelopmentandasustainablefinancial

model.ThiswillincludechangestothefinancialreturnforCommunity Bank®companiesfrom1July2016.A

fundstransferpricingmodelwillbeusedforthemethodofcalculationofthecostoffunds,depositreturnand

margin.Allrevenuepaidoncorebankingproductswillbethroughmarginshare.Marginoncorebankingproducts

willbesharedona50/50basis.

Thefranchiseagreementprovidesthatthreeformsofrevenuemaybeearnedbythecompany–margin,

commissionandfeeincome.BendigoandAdelaideBankLimiteddecidestheformofrevenuethecompanyearns

ondifferenttypesofproductsandservices.

Therevenueearnedbythecompanyisdependentonthebusinessthatitgenerates.Itmayalsobeaffectedby

otherfactors,suchaseconomicandlocalconditions,forexample,interestrates.

Core banking products

BendigoandAdelaideBankLimitedhasidentifiedsomeBendigoBankGroupproductsandservicesas‘core

bankingproducts’.Itmaychangetheproductsandserviceswhichareidentifiedascorebankingproductsbygiving

thecompanyatleast30days’notice.CorebankingproductscurrentlyincludeBendigoBankbrandedhomeloans,

termdepositsandatcalldeposits.

Margin

Marginisarrivedatthroughthefollowingcalculation:

• Interestpaidbycustomersonloanslessinterestpaidtocustomersondeposits,

• plusanydepositreturnsi.e.interestreturnappliedbyBendigoandAdelaideBankLimitedforadeposit,

• minusanycostsoffundsi.e.interestappliedbyBendigoandAdelaideBankLimitedtofundaloan.

Note:Inverysimplifiedterms,currently,depositreturnmeanstheinterestBendigoandAdelaideBankLimited

getswhenitinveststhemoneythecustomerdepositswithit.ThecostoffundsmeanstheinterestBendigoand

AdelaideBankLimitedpayswhenitborrowsthemoneytogiveacustomeraloan.From1July2016,bothwill

meanthecostforBendigoandAdelaideBankLimitedtoborrowthemoneyinthemarket.

Productsandservicesonwhichmarginispaidincludevariableratedepositsandvariableratehomeloans.From

1July2016,examplesincludeBendigoBankbrandedatcalldeposits,termdepositsandhomeloans.




b) Revenue (continued)

Margin(continued)

Forthoseproductsandservicesonwhichmarginispaid,thecompanyisentitledtoashareofthemarginearned

byBendigoandAdelaideBankLimited(i.e.incomeadjustedforBendigoandAdelaideBankLimited’sinterest

expenseandinterestincomereturn).However,ifthisreflectsaloss,thecompanyincursashareofthatloss.

Commission

Commissionisafeepaidforproductsandservicessold.Itmaybepaidontheinitialsaleoronanongoingbasis.

Commissionispayableonthesaleofaninsuranceproductsuchashomecontents.Examplesofproductsand

servicesonwhichongoingcommissionsarepaidincludeleasingandSandhurstTrusteesLimitedproducts.This

currentlyalsoincludesBendigoBankbrandedfixedratehomeloansandtermdepositsofmorethan90days,but

thesewillbecomemarginproductsfrom1July2016.

Fee income

Feeincomeisashareofwhatiscommonlyreferredtoas‘bankfeesandcharges’chargedtocustomersby

BendigoBankGroupentitiesincludingfeesforloanapplicationsandaccounttransactions.

Abilitytochangefinancialreturn

Underthefranchiseagreement,BendigoandAdelaideBankLimitedmaychangetheformandamountoffinancial

returnthatthecompanyreceives.Thereasonsitmaymakeachangeincludechangesinindustryoreconomic

conditionsorchangesinthewayBendigoandAdelaideBankLimitedearnsrevenue.

Thechangemaybetothemethodofcalculationofmargin,theamountofmargin,commissionandfeeincomeor

achangeofamargintoacommissionorviceversa.Thismayaffecttheamountofrevenuethecompanyreceives

onaparticularproductorservice.Theeffectofthechangeontherevenueearnedbythecompanyisentirely

dependentonthechange.

Thechangemaybetothemethodofcalculationofmargin,theamountofmargin,commissionandfeeincomeor

achangeofamargintoacommissionorviceversa.Thismayaffecttheamountofrevenuethecompanyreceives

onaparticularproductorservice.Theeffectofthechangeontherevenueearnedbythecompanyisentirely

dependentonthechange.

IfBendigoandAdelaideBankLimitedmakesachangetothemarginorcommissiononcorebankingproducts

andservices,itmustnotreducethemarginandcommissionthecompanyreceivesoncorebankingproductsand

servicesBendigoandAdelaideBankLimitedattributestothecompanytolessthan50%(onanaggregatebasis)

ofBendigoandAdelaideBankLimited’smarginatthattime.Forotherproductsandservices,thereisnorestriction

onthechangeBendigoandAdelaideBankLimitedmaymake.

BendigoandAdelaideBankLimitedmustgivethecompany30days’noticebeforeitchangestheproductsand

servicesonwhichmargin,commissionorfeeincomeispaid,themethodofcalculationofmarginandtheamount

ofmargin,commissionorfeeincome.

Monitoring and changing financial return

BendigoandAdelaideBankLimitedmonitorsthedistributionoffinancialreturnbetweenCommunity Bank®

companiesandBendigoandAdelaideBankLimitedonanongoingbasis.

Overall,BendigoandAdelaideBankLimitedhasmadeitclearthattheCommunity Bank® model is based on the

principleofsharedrewardforsharedeffort.Inparticular,inrelationtocorebankingproductsandservices,theaim

istoachieveanequalshareofBendigoandAdelaideBankLimited’smargin.




b) Revenue (continued)

Monitoringandchangingfinancialreturn(continued)

AsdiscussedaboveinrelationtoProjectHorizon,amongotherthings,therewillbechangesinthefinancialreturn

for Community Bank®companiesfrom1July2016.Thisincludes50%shareofmarginoncorebankingproducts,

allcorebankingproductsbecomemarginproductsandafundstransferpricingmodelwillbeusedforthemethod

ofcalculationofthecostoffunds,depositreturnandmargin.

c) Income tax

Current tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the

taxableprofitorlossfortheperiod.Itiscalculatedusingtaxratesandtaxlawsthathavebeenenactedor

substantivelyenactedbyreportingdate.Currenttaxforcurrentandpriorperiodsisrecognisedasaliability(or

asset)totheextentthatitisunpaid(orrefundable).

Deferredtax

Deferredtaxisaccountedforusingthebalancesheetliabilitymethodontemporarydifferencesarisingfrom

differencesbetweenthecarryingamountofassetsandliabilitiesinthefinancialstatementsandthecorresponding

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

recognitionofassetsandliabilities(otherthanasaresultofabusinesscombination)whichaffectsneither

taxableincomenoraccountingprofit.Furthermore,adeferredtaxliabilityisnotrecognisedinrelationtotaxable

temporarydifferencesarisingfromgoodwill.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiod(s)when

theassetandliabilitygivingrisetothemarerealisedorsettled,basedontaxrates(andtaxlaws)thathavebeen

enactedorsubstantivelyenactedbyreportingdate.Themeasurementofdeferredtaxliabilitiesreflectsthetax

consequencesthatwouldfollowfromthemannerinwhichtheconsolidatedentityexpects,atthereportingdate,to

recoverorsettlethecarryingamountofitsassetsandliabilities.

Deferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrenttaxand

whenthebalancesrelatetotaxesleviedbythesametaxationauthorityandthecompanyentityintendstosettle

itstaxassetsandliabilitiesonanetbasis.

Current and deferred tax for the period

CurrentanddeferredtaxisrecognisedasanexpenseorincomeintheStatementofProfitorLossandOther

ComprehensiveIncome,exceptwhenitrelatestoitemscreditedordebitedtoequity,inwhichcasethedeferred

taxisalsorecogniseddirectlyinequity,orwhereitarisesfrominitialaccountingforabusinesscombination,in

whichcaseitistakenintoaccountinthedeterminationofgoodwillorexcess.




d) Employee entitlements

Provisionismadeforthecompany’sliabilityforemployeebenefitsarisingfromservicesrenderedbyemployees

tobalancedate.Employeebenefitsthatareexpectedtobesettledwithinoneyearhavebeenmeasuredatthe

amountsexpectedtobepaidwhentheliabilityissettled,plusrelatedon-costs.Employeebenefitspayablelater

thanoneyearhavebeenmeasuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadefor

thosebenefits.

Thecompanycontributestoadefinedcontributionplan.Contributionstoemployeesuperannuationfundsare

chargedagainstincomeasincurred.

e) Cash and cash equivalents

ForthepurposesoftheStatementofCashFlows,cashincludescashonhandandinbanksandinvestmentsin

moneymarketinstruments,netofoutstandingbankoverdrafts.Bankoverdraftsareshownwithinborrowingsin

currentliabilitiesontheBalanceSheet.

f) Trade receivables and payables

Receivablesarecarriedattheiramountsdue.Thecollectabilityofdebtsisassessedatbalancedateandspecific

provisionismadeforanydoubtfulaccounts.Liabilitiesfortradecreditorsandotheramountsarecarriedatcost

thatisthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived,whetherornot

billedtothecompany.

g) Property, plant and equipment

Plantandequipment,leaseholdimprovementsandequipmentunderfinanceleasearestatedatcostless

accumulateddepreciationandimpairment.Costincludesexpenditurethatisdirectlyattributabletotheacquisition

oftheitem.Intheeventthatsettlementofallorpartofthepurchaseconsiderationisdeferred,costisdetermined

bydiscountingtheamountspayableinthefuturetotheirpresentvalueasatthedateofacquisition.

Depreciationisprovidedonproperty,plantandequipment,includingfreeholdbuildingsbutexcludingland.

Depreciationiscalculatedonastraightlinebasissoastowriteoffthenetcostofeachassetoveritsexpected

usefullifetoitsestimatedresidualvalue.Leaseholdimprovementsaredepreciatedattherateequivalentto

theavailablebuildingallowanceusingthestraightlinemethod.Theestimatedusefullives,residualvaluesand

depreciationmethodarereviewedattheendofeachannualreportingperiod.

Thefollowingestimatedusefullivesareusedinthecalculationofdepreciation:

• leaseholdimprovements 40 years

• plantandequipment 2.5-40years

• furnitureandfittings 4-40years

h) Intangibles

ThefranchisefeepaidtoBendigoandAdelaideBankLimitedhasbeenrecordedatcostandisamortisedona

straightlinebasisoverthelifeofthefranchiseagreement.

TherenewalprocessingfeepaidtoBendigoandAdelaideBankLimitedwhenrenewingthefranchiseagreement

hasalsobeenrecordedatcostandisamortisedonastraightlinebasisoverthelifeofthefranchiseagreement.




i) Payment terms

Receivablesandpayablesarenoninterestbearingandgenerallyhavepaymenttermsofbetween30and90days.

j) Borrowings

Allloansareinitiallymeasuredattheprincipalamount.Interestisrecognisedasanexpenseasitaccrues.

k) Financial instruments

Recognition and initial measurement

Financialinstruments,incorporatingfinancialassetsandfinancialliabilitiesarerecognisedwhentheentity

becomesapartytothecontractualprovisionsoftheinstrument.

Financialinstrumentsareinitiallymeasuredatfairvalueplustransactioncosts.Financialinstrumentsare

classifiedandmeasuredassetoutbelow.

Derecognition

Financialassetsarederecognisedwherethecontractualrightstoreceiptofcashflowsexpiresortheassetis

transferredtoanotherpartywherebytheentitynolongerhasanysignificantcontinuinginvolvementintherisks

andbenefitsassociatedwiththeasset.

Classificationandsubsequentmeasurement

(i) Loansandreceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenot

quotedinanactivemarketandaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestrate

method.

(ii) Held-to-maturityinvestments

Held-to-maturityinvestmentsarenon-derivativefinancialassetsthathavefixedmaturitiesandfixedor

determinablepayments,anditistheentity’sintentiontoholdtheseinvestmentstomaturity.Theyare

subsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.

(iii)Available-for-salefinancialassets

Available-for-salefinancialassetsarenon-derivativefinancialassetsthatareeithernotsuitabletobeclassified

intoothercategoriesoffinancialassetsduetotheirnature,ortheyaredesignatedassuchbymanagement.

Theycompriseinvestmentsintheequityofotherentitieswherethereisneitherafixedmaturitynorfixedor

determinablepayments.

Theyaresubsequentlymeasuredatfairvaluewithchangesinsuchfairvalue(i.e.gainsorlosses)recognised

intheStatementofProfitorLossandOtherComprehensiveIncome.Available-for-salefinancialassetsare

includedinnon-currentassetsexceptwheretheyareexpectedtobesoldwithin12monthsaftertheendof

thereportingperiod.Allotherfinancialassetsareclassifiedascurrentassets.

(iv)Financialliabilities

Non-derivativefinancialliabilities(excludingfinancialguarantees)aresubsequentlymeasuredatamortisedcost

usingtheeffectiveinterestratemethod.




k) Financial instruments (continued)

Impairment

Ateachreportingdate,theentityassesseswhetherthereisobjectiveevidencethatafinancialinstrumenthas

beenimpaired.ImpairmentlossesarerecognisedintheStatementofProfitorLossandOtherComprehensive

Income.

l) Leases

Leasesoffixedassetswheresubstantiallyalltherisksandbenefitsincidentaltotheownershipoftheasset,

butnotthelegalownershiparetransferredtothecompanyareclassifiedasfinanceleases.Financeleasesare

capitalisedbyrecordinganassetandaliabilityattheloweroftheamountsequaltothefairvalueoftheleased

propertyorthepresentvalueoftheminimumleasepayments,includinganyguaranteedresidualvalues.Lease

paymentsareallocatedbetweenthereductionoftheleaseliabilityandtheleaseinterestexpensefortheperiod.

Leasedassetsaredepreciatedonastraight-linebasisovertheshorteroftheirestimatedusefullivesorthelease

term.Leasepaymentsforoperatingleases,wheresubstantiallyalltherisksandbenefitsremainwiththelessor,

arechargedasexpensesintheperiodsinwhichtheyareincurred.Leaseincentivesunderoperatingleasesare

recognisedasaliabilityandamortisedonastraight-linebasisoverthelifeoftheleaseterm.

m) Provisions

Provisionsarerecognisedwhentheeconomicentityhasalegal,equitableorconstructiveobligationtomakea

futuresacrificeofeconomicbenefitstootherentitiesasaresultofpasttransactionsofotherpastevents,itis

probablethatafuturesacrificeofeconomicbenefitswillberequiredandareliableestimatecanbemadeofthe

amountoftheobligation.

Aprovisionfordividendsisnotrecognisedasaliabilityunlessthedividendsaredeclared,determinedorpublicly

recommendedonorbeforethereportingdate.

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,or

payableto,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

adverseeffectsonthefinancialperformanceoftheentity.Theentitydoesnotusederivativeinstruments.

Riskmanagementiscarriedoutdirectlybytheboardofdirectors.

(i)Marketrisk

ThecompanyhasnoexposuretoanytransactionsdenominatedinacurrencyotherthanAustraliandollars.

(ii)Pricerisk

Thecompanyisnotexposedtoequitysecuritiespriceriskasitdoesnotholdinvestmentsforsaleoratfairvalue.

Thecompanyisnotexposedtocommoditypricerisk.

(iii)Creditrisk

Thecompanyhasnosignificantconcentrationsofcreditrisk.Ithaspoliciesinplacetoensurethatcustomers

haveanappropriatecredithistory.Thecompany’sfranchiseagreementlimitsthecompany’screditexposuretoone

financialinstitution,beingBendigoandAdelaideBankLimited.

(iv)Liquidityrisk

Prudentliquiditymanagementimpliesmaintainingsufficientcashandmarketablesecuritiesandtheavailability

offundingfromcreditfacilities.ThecompanybelievesthatitssoundrelationshipwithBendigoandAdelaideBank

Limitedmitigatesthisrisksignificantly.

(v)Cashflowandfairvalueinterestraterisk

Interest-bearingassetsareheldwithBendigoandAdelaideBankLimitedandsubjecttomovementsinmarket

interest.Interest-rateriskcouldalsoarisefromlong-termborrowings.Borrowingsissuedatvariableratesexpose

thecompanytocashflowinterest-raterisk.ThecompanybelievesthatitssoundrelationshipwithBendigoand

AdelaideBankLimitedmitigatesthisrisksignificantly.

(vi)Capitalmanagement

Theboard’spolicyistomaintainastrongcapitalbasesoastosustainfuturedevelopmentofthecompany.The

boardofdirectorsmonitorthereturnoncapitalandthelevelofdividendstoshareholders.Capitalisrepresented

bytotalequityasrecordedintheBalanceSheet.

Inaccordancewiththefranchiseagreement,inany12monthperiod,thefundsdistributedtoshareholdersshall

not exceed the distribution limit:

The distribution limit is the greater of:

(a)20%oftheprofitorfundsofthefranchiseeotherwiseavailablefordistributiontoshareholdersinthat12

monthperiod;and

(b) subjecttotheavailabilityofdistributableprofits,therelevantrateofreturnmultipliedbytheaveragelevelof

sharecapitalofthefranchiseeoverthat12monthperiodwheretherelevantrateofreturnisequaltothe

weightedaverageinterestrateon90daybankbillsoverthat12monthperiodplus5%.



Note2.Financialriskmanagement(continued)

Theboardismanagingthegrowthofthebusinessinlinewiththisrequirement.Therearenootherexternally

imposedcapitalrequirements,althoughthenatureofthecompanyissuchthatamountswillbepaidintheform

ofcharitabledonationsandsponsorship.Charitabledonationsandsponsorshippaidfortheyearended30June

2015canbeseenintheStatementofProfitorLossandOtherComprehensiveIncome.

Therewerenochangesinthecompany’sapproachtocapitalmanagementduringtheyear.

Note3.CriticalaccountingestimatesandjudgementsEstimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,

including expectations of future events that may have a financial impact on the entity and that are believed to be

reasonableunderthecircumstances.

Thecompanymakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,by

definition,seldomequaltherelatedactualresults.

Managementhasidentifiedthefollowingcriticalaccountingpoliciesforwhichsignificantjudgements,estimates

andassumptionsaremade.Actualresultsmaydifferfromtheseestimatesunderdifferentassumptionsand

conditionsandmaymateriallyaffectfinancialresultsorthefinancialpositionreportedinfutureperiods.

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

financialstatements.

Taxation

Judgementisrequiredinassessingwhetherdeferredtaxassetsandcertaintaxliabilitiesarerecognisedon

thebalancesheet.Deferredtaxassets,includingthosearisingfromun-recoupedtaxlosses,capitallossesand

temporarydifferences,arerecognisedonlywhereitisconsideredmorelikelythannotthattheywillberecovered,

whichisdependentonthegenerationofsufficientfuturetaxableprofits.

Assumptionsaboutthegenerationoffuturetaxableprofitsdependonmanagement’sestimatesoffuturecash

flows.Thesedependonestimatesoffuturesalesvolumes,operatingcosts,capitalexpenditure,dividendsand

othercapitalmanagementtransactions.Judgementsarealsorequiredabouttheapplicationofincometax

legislation.

Thesejudgementsandassumptionsaresubjecttoriskanduncertainty.Thereisthereforeapossibilitythat

changesincircumstanceswillalterexpectations,whichmayimpacttheamountofdeferredtaxassetsand

deferred tax liabilities recognised on the balance sheet and the amount of other tax losses and temporary

differencesnotyetrecognised.Insuchcircumstances,someorallofthecarryingamountofrecogniseddeferred

taxassetsandliabilitiesmayrequireadjustment,resultingincorrespondingcreditorchargetotheStatementof

ProfitorLossandOtherComprehensiveIncome.

Estimationofusefullivesofassets

The estimation of the useful lives of assets has been based on historical experience and the condition of the

assetisassessedatleastonceperyearandconsideredagainsttheremainingusefullife.Adjustmentstouseful

livesaremadewhenconsiderednecessary.



Note3.Criticalaccountingestimatesandjudgements(continued)

Impairment of assets

Ateachreportingdate,thecompanyreviewsthecarryingamountsofitstangibleandintangibleassetsthathave

anindefiniteusefullifetodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairment

loss.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodeterminethe

extentoftheimpairmentloss(ifany).Wheretheassetdoesnotgeneratecashflowsthatareindependentfrom

otherassets,theconsolidatedentityestimatestherecoverableamountofthecash-generatingunittowhichthe

assetbelongs.

Recoverableamountisthehigheroffairvaluelesscoststosellandvalueinuse.Inassessingvalueinuse,the

estimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrent

marketassessmentsofthetimevalueofmoneyandtherisksspecifictotheassetforwhichtheestimatesof

futurecashflowshavenotbeenadjusted.

Iftherecoverableamountofanasset(orcash-generatingunit)isestimatedtobelessthanitscarryingamount,

thecarryingamountoftheasset(cash-generatingunit)isreducedtoitsrecoverableamount.Animpairmentloss

isrecognisedinprofitorlossimmediately,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethe

impairmentlossistreatedasarevaluationdecrease.

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(cash-generatingunit)is

increasedtotherevisedestimateofitsrecoverableamount,butonlytotheextentthattheincreasedcarrying

amountdoesnotexceedthecarryingamountthatwouldhavebeendeterminedhadnoimpairmentlossbeen

recognisedfortheasset(cash-generatingunit)inprioryears.Areversalofanimpairmentlossisrecognised

inprofitorlossimmediately,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethereversalofthe

impairmentlossistreatedasarevaluationincrease.

Fair value measurement

Someofthecompany’sassetsandliabilitiesaremeasuredatfairvalueforfinancialreportingpurposes.Theboard

ofdirectorsdeterminetheappropriatevaluationtechniquesandinputsforfairvaluemeasurements.

FairvaluemeasurementsarecategorisedintoLevel1,2or3basedonthedegreetowhichtheinputstothe

fair value measurements are observable and the significance of the inputs to the fair value measurement in its

entirety,whicharedescribedasfollows:

• Level1inputsarequotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentity

can access at the measurement date

• Level2inputsareinputs,otherthanquotedpricesincludedwithinLevel1,thatareobservablefortheassetor

liability,eitherdirectlyorindirectly

• Level3inputsareunobservableinputsfortheassetorliability.

Inestimatingthefairvalueofanassetoraliability,thecompanyusesmarket-observabledatatotheextentitis

available.WhereLevel1inputsarenotavailable,thecompanyengagesthirdpartyqualifiedvaluerstoperformthe

valuation.



Note4.RevenuefromordinaryactivitiesOperating activities:

-servicescommissions 1,246,005 1,180,967

-otherrevenue 255,159 254,544

Total revenue from operating activities 1,501,164 1,435,511

Non-operatingactivities:

-interestreceived 1,624 9,562

Total revenue from non-operating activities 1,624 9,562

Total revenues from ordinary activities 1,502,788 1,445,073

Note5.Expenses Depreciationofnon-currentassets:

-plantandequipment 7,082 8,404

-leaseholdimprovements 8,077 9,253

Amortisationofnon-currentassets:

-franchiseagreement 4,314 4,314

-franchiserenewalfee 19,570 19,570

39,043 41,541

Finance costs:

-interestpaid 7,177 1,256

-borrowingcosts 145 102

7,322 1,358

Bad debts 744 1,646

Loss on disposal of asset 35,268 -

Note6.IncometaxexpenseThe components of tax expense comprise:

-Currenttax 86,807 117,870

-Movementindeferredtax (3,140) (4,680)

-Adjustmenttodeferredtaxtoreflectchangetotaxrateinfutureperiods 1,735 -

85,402 113,190

2015 2014 $ $



Note6.Incometaxexpense(continued)

The prima facie tax on profit from ordinary activities before income tax is

reconciledtotheincometaxexpenseasfollows

Operatingprofit 34,999 377,301

Primafacietaxonprofitfromordinaryactivitiesat30% 10,500 113,190

Addtaxeffectof:

-non-deductibleexpenses 73,167 -

-timingdifferenceexpenses 3,140 4,680

86,807 117,870

Movementindeferredtax (3,140) (4,680)

Adjustmenttodeferredtaxtoreflectchangeoftaxrateinfutureperiods 1,735 -

85,402 113,190

Note7.CashandcashequivalentsCashatbankandonhand 114,093 63,947

Termdeposits 1,000 120,000

115,093 183,947

Note 7.(a) Reconciliation to cash flow statement

Theabovefiguresreconciletotheamountofcashshowninthestatementof

cashflowsattheendofthefinancialyearasfollows:

Cashatbankandonhand 114,093 63,947

Termdeposits 1,000 120,000

115,093 183,947

Note8.Tradeandotherreceivables Tradereceivables 127,515 121,994

Otherreceivablesandaccruals 687 999

Otherassets 68 171

128,270 123,164

2015 2014 $ $



Note9.Property,plantandequipmentLand and buildings

Land(atvaluation)

AtIndependentvaluation 850,000 850,000

Buildings(atvaluation)

AtIndependentvaluation 380,000 -

Lessaccumulateddepreciation - -

380,000 -

Leasehold improvements

Atcost 117,894 299,273

Lessaccumulateddepreciation (101,408) (240,121)

16,486 59,152

Plantandequipment

Atcost 119,055 52,013


84,001 15,531

Motor vehicles

Atcost 35,664 33,636


22,561 25,585

Worksinprogress(105MainStreet.Romsey)

Atcost - 73,309

- 73,309

Total written down amount 1,353,048 1,023,577

Movements in carrying amounts:

Land*

Carryingamountatbeginning 850,000 850,000

Additions - -

Disposals - -

Less:depreciationexpense - -

Carrying amount at end 850,000 850,000

2015 2014 $ $



Note9.Property,plantandequipment(continued)

Buildings*

Carryingamountatbeginning - -

Additions 380,000 -

Disposals - -


Carrying amount at end 380,000 -

Leasehold improvements


Additions - -

Disposals (34,589) -

Less:depreciationexpense (8,077) (9,253)


Plantandequipment


Additions 71,180 -

Disposals (679) -



Motor vehicles


Additions 2,027 -

Disposals - -



Worksinprogress(105MainStreet.Romsey)*

Carryingamountatbeginning 73,309 -

Additions - 73,309

Disposals (73,309) -


Carrying amount at end - 73,309

Total written down amount 1,353,048 1,023,577

2015 2014 $ $



Note9.Property,plantandequipment(continued)

* UponcompletionofthebuildingofthenewRomseyBranchat105MainStreet,Romseythecompanyhada

carryingvalueof$1,473,888forthelandandbuildings.On22ndOctober,2014anindependentvaluation

wasobtainedfromCertifiedPracticingValuersJustinThomasandPatrickBradyofWBPPropertyGrouponan

“asifcomplete”basisat$1,230,000.Thedirectorshavedeterminedtorepresenttheassetatthefairvalue

obtainedfromtheindependentvaluation.Thisdecisiongivesrisetoalossonrevaluationofassetstothe

valueof$243,888.

2015 2014 $ $

Land105MainStreet.Romsey 850,000 850,000

Worksinprogressasatbeginningofperiod 73,309 -

Expenditureduringtheyear 544,806 73,309

HoldingCostsfortheperiod 5,773 -

Lessrevaluation (243,888) -

Land and buildings valuation 1,230,000 923,309

Note10.Intangibleassets Franchise fee

Atcost 131,570 131,570

Less:accumulatedamortisation (129,502) (125,188)

2,068 6,382

Renewalprocessingfee

Atcost 97,853 97,853

Less:accumulatedamortisation (89,449) (69,879)

8,404 27,974

Total written down amount 10,472 34,356

Note11.Tax Current:

Income tax payable/(refundable) (34,792) 13,681

Non-Current:

Deferredtaxassets

-accruals 844 150

-employeeprovisions 32,119 31,709

32,963 31,859



Note11.Tax(continued)

Deferredtaxliability

-accruals - (300)

- (300)

Net deferred tax asset 32,963 31,559

Movement in deferred tax charged to Statement of Profit or Loss

and Other Comprehensive Income (1,404) (4,679)

Note12.TradeandotherpayablesCurrent:

Tradecreditors 16,895 18,045

Othercreditorsandaccruals 156,187 73,602

173,082 91,647

Note13.BorrowingsCurrent:

EquipmentLoan 7,106 10,176

BankLoan - 7,706

7,106 17,882

Non-Current:

EquipmentLoan - 7,106

BankLoan 332,206 -

332,206 7,106

Thebankloanisaninterestonlyloanforthefirst12monthscommencing17thSeptember2015.Afterthefirst12

monthstheloanwillberepayablemonthlywiththefinalinstalmentdueon17March2035.Interestisrecognised

atanaveragerateof4.95%.Theloanissecuredbyafirstmortgageoverthepropertylocatedat105MainStreet,

Romsey.Theoriginalwithdrawaloftheloanwasfor$649,271,duetorepaymentsmadeduringtheperiodtheyare

not obligated to repay any principal of the loan for a significant time

Theequipmentloanisrepayablemonthlywiththefinalinstalmentdueon18February2016.Interestisrecognised

atanaveragerateof5.59%(2014:5.59%).

2015 2014 $ $



Note 14. Provisions Current:

Provision for annual leave 33,501 34,680

Provision for long service leave 67,885 66,385

101,386 101,065

Non-Current:

Provision for long service leave 11,312 4,631

Note 15. Contributed equity 1,010,700 ordinary shares fully paid (2014: 1,010,700) 970,700 970,700

Less: return of share capital (252,675) (252,675)

Less: equity raising expenses (50,156) (50,156)

667,869 667,869

Rights attached to shares

(a) Voting rights

Subject to some limited exceptions, each member has the right to vote at a general meeting.

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

in person or by attorney, corporate representative or proxy) has one vote, regardless of the number of shares

held. However, where a person attends a meeting in person and is entitled to vote in more than one capacity

(for example, the person is a member and has also been appointed as proxy for another member) that person

may only exercise one vote on a show of hands. On a poll, that person may exercise one vote as a member and

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

proxy.

The purpose of giving each member only one vote, regardless of the number of shares held, is to reflect the

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® branch have the same

ability to influence the operation of the company.

(b) Dividends

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

shares held by them, subject to any special rights and restrictions for the time being attaching to shares. The

franchise agreement with Bendigo and Adelaide Bank Limited contains a limit on the level of profits or funds

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, ordinary shares are freely transferable. However, the directors have a discretion to refuse to register

a transfer of shares.

2015 2014 $ $



Note15.Contributedequity(continued)

Rightsattachedtoshares(continued)

(c)Transfer(continued)

Subjecttotheforegoing,shareholdersmaytransfersharesbyapropertransfereffectedinaccordancewiththe

company’sconstitutionandtheCorporationsAct2001.

Prohibitedshareholdinginterest

Apersonmustnothaveaprohibitedshareholdinginterestinthecompany.

Insummary,apersonhasaprohibitedshareholdinginterestiftheycontrolorown10%ormoreofthesharesin

thecompany(the“10%limit”).

Aswithvotingrights,thepurposeofthisprohibitedshareholdingprovisionistoreflectthecommunity-basednature

ofthecompany.

Whereapersonhasaprohibitedshareholdinginterest,thevotinganddividendrightsattachingtothesharesin

whichtheperson(andhisorherassociates)haveaprohibitedshareholdinginterest,aresuspended.

Theboardhasthepowertorequestinformationfromapersonwhohas(orissuspectedbytheboardofhaving)

alegalorbeneficialinterestinanysharesinthecompanyoranyvotingpowerinthecompany,forthepurposeof

determiningwhetherapersonhasaprohibitedshareholdinginterest.Iftheboardbecomesawarethatamember

hasaprohibitedshareholdinginterest,itmustserveanoticerequiringthemember(orthemember’sassociate)to

disposeofthenumberofsharestheboardconsidersnecessarytoremedythebreach.Ifapersonfailstocomply

withsuchanoticewithinaspecifiedperiod(thatmustbebetweenthreeandsixmonths),theboardisauthorised

tosellthespecifiedsharesonbehalfofthatperson.Theholderwillbeentitledtotheconsiderationfromthesale

oftheshares,lessanyexpensesincurredbytheboardinsellingorotherwisedealingwiththoseshares.

Intheconstitution,membersacknowledgeandrecognisethattheexerciseofthepowersgiventotheboardmay

causeconsiderabledisadvantagetoindividualmembers,butthatsucharesultmaybenecessarytoenforcethe

prohibition.

2015 2014 $ $

Note16.Retainedearnings Balanceatthebeginningofthefinancialyear 492,722 289,253

Netprofit/(loss)fromordinaryactivitiesafterincometax (50,403) 264,111

Dividendspaidorprovidedfor (60,642) (60,642)

Balance at the end of the financial year 381,677 492,722



Note17.StatementofcashflowsReconciliationofprofit/(loss)fromordinaryactivitiesaftertaxtonetcash

provided by operating activities

Profit/(loss)fromordinaryactivitiesafterincometax (50,403) 264,111

Non cash items:

-depreciation 15,159 17,657

-amortisation 23,884 23,884

-revaluationofinvestment 243,888 -

-lossondisposalofasset 35,268 -

Changes in assets and liabilities:

-(increase)/decreaseinreceivables (5,106) (770)

-(increase)/decreaseinotherassets (36,196) (4,680)

-increase/(decrease)inpayables (4,629) (11,752)

-increase/(decrease)inprovisions 7,002 13,565

-increase/(decrease)incurrenttaxliabilities (13,681) 5,662

Net cash flows provided by operating activities 215,186 307,677

Note18.FairvaluemeasurementThissectionexplainsthejudgementsandestimatesmadeindeterminingthefairvaluesofthecompany’sassets

thatarerecognisedandmeasuredatfairvalueinthefinancialstatements.Toprovideanindicationaboutthe

reliabilityoftheinputsusedindeterminingfairvalue,theapplicableassetshavebeenclassifiedintothethree

levelsprescribedundertheaccountingstandards.Anexplanationofeachlevelfollowsunderneaththetable.

At 30 June 2015Level 1

$ Level 2

$ Level 3

$ Total

$

Recurring fair value measurements:

Available-for-salefinancialassets

Property,PlantandEquipment

Freehold land - 850,000 - 850,000

Buildings - 380,000 - 380,000

Plantandequipment - - - -

Total assets at fair value - 1,230,000 - 1,230,000

2014 2013 $ $ 2015 2014 $ $



Note18.Fairvaluemeasurement(continued)

At 30 June 2015Level 1

$ Level 2

$ Level 3

$ Total

$

Recurring fair value measurements:

Available-for-salefinancialassets

Property,PlantandEquipment

Freehold land - 850,000 - 850,000

Buildings - - - -

Plantandequipment - - - -

Total assets at fair value - 850,000 - 850,000

TherewerenotransfersbetweenLevel1andLevel2duringthereportingperiod.Thecompany’spolicyisto

recognisetransfersintoandtransfersoutoffairvaluehierarchylevelsasattheendofthereportingperiod.

Level1:Thefairvalueofavailable-for-salefinancialassetstradedinactivemarketsisbasedonthequotedmarket

priceatthecloseofbusinessattheendofthereportingperiod.

Level2:Thefairvalueofproperty,plantandequipmentisbasedonavaluationperformedbyathirdpartyqualified

valuerusingquotedpricesforsimilarassetsinanactivemarket.

Level3:TherewerenofairvaluemeasurementsbytheLevel3fairvaluehierarchy.

2015 2014 $ $

Note19.LeasesFinance lease commitments

Payable-minimumleasepayments:

-notlaterthan12months 7,255 10,882

-between12monthsand5years - 7,255

-greaterthan5years - -

Minimum lease payments 7,255 18,137

Lessfuturefinancecharges (149) (855)

Present value of minimum lease payments 7,106 17,282

Theequipmentloanisrepayablemonthlywiththefinalinstalmentdueon18February2016.Interestisrecognised

atanaveragerateof5.59%(2013:5.59%).



Note19.Leases(continued)

Operating lease commitments

Non-cancellableoperatingleasescontractedforbutnotcapitalised

in the financial statements

Payable-minimumleasepayments:

-notlaterthan12months 9,413 30,280

-between12monthsand5years - 11,421

-greaterthan5years - -

9,413 41,701

TheoperatingleasefortheLancefieldbranchisanon-cancellableleasewithafive-yeartermwhichisduetoexpire

inJanuary2016.Rentpayablemonthlyinadvance.

TheoperatingleasefortheRomseybranchwasmutuallyagreetobeterminatedtwomonthsearlyinJune2015.

2015 2014 $ $

Note20.Auditor’sremuneration Amountsreceivedordueandreceivablebytheauditorofthecompanyfor:

-auditandreviewservices 3,950 4,773

-shareregistryservices 5,441 3,620

-nonauditservices 2,410 1,150

11,801 9,543

Note21.DirectorandrelatedpartydisclosuresNodirectorofthecompanyreceivesremunerationforservicesasacompanydirectororcommitteemember.

Therearenoexecutiveswithinthecompanywhoseremunerationisrequiredtobedisclosed.

2015 2014

KeyManagementPersonnelShareholdings

Ordinarysharesfullypaid 38,733 38,733

Detailedshareholdingdisclosuresareprovidedintheremunerationreport,includedaspartofthedirectors’

report.

2014 2013 $ $ 2015 2014 $ $



Note22.Dividendspaidorprovideda. Dividends paid during the year

Current year dividend

100% (2014: 100%) franked dividend - 6 cents (2014: 6 cents) per share 60,642 60,642

Thetaxrateatwhichdividendshavebeenfrankedis30%(2014:30%).

b. Franking account balance

Frankingcreditsavailableforsubsequentreportingperiodsare:

- frankingaccountbalanceasattheendofthefinancialyear 466,495 361,998

- frankingcredits/(debits)thatwillarisefrompayment/(refund)ofincome

taxasattheendofthefinancialyear (107,959) 40,145

- frankingdebitsthatwillarisefromthepaymentofdividendsrecognised

asaliabilityattheendofthefinancialyear - -

Franking credits available for future financial reporting periods: 358,536 402,143

- frankingdebitsthatwillarisefrompaymentofdividendsproposedor

declaredbeforethefinancialreportwasauthorisedforusebutnot

recognisedasadistributiontoequityholdersduringtheperiod - -

Net franking credits available 358,536 402,143

Note23.Earningspershare

2015 $

2014 $

(a) Profit/(loss)attributabletotheordinaryequityholdersofthecompany

used in calculating earnings per share(50,403) 264,111

Number Number

(b) Weightedaveragenumberofordinarysharesusedasthe

denominator in calculating basic earnings per share970,700 970,700

Note24.EventsoccurringafterthereportingdateTherehavebeennoeventsaftertheendofthefinancialyearthatwouldmateriallyaffectthefinancialstatements.

Note25.ContingentliabilitiesandcontingentassetsTherewerenocontingentliabilitiesorcontingentassetsatthedateofthisreporttoaffectthefinancial

statements.

2015 2014 $ $



Note26.SegmentreportingTheeconomicentityoperatesintheservicesectorwhereitfacilitatesCommunity Bank® services in Lancefield

andRomsey,VictoriapursuanttoafranchiseagreementwithBendigoandAdelaideBankLimited.

Note27.Registeredoffice/PrincipalplaceofbusinessTheentityisacompanylimitedbyshares,incorporatedanddomiciledinAustralia.Theregisteredofficeand

principal place of business is:

Registered Office Principal Place of Business

20AHighStreet

Lancefield VIC 3435

20AHighStreet

Lancefield VIC 3435

Note28.Financialinstruments

FinancialInstrumentCompositionandMaturityAnalysis

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

2015$

2014$

2015$

2014$

2015$

2014$

2015$

2014$

2015$

2014$

2015%

2014%

Financial assets

Cash and cash equivalents

113,693 63,547 1,000 120,000 - - - - 400 400 1 2.44

Receivables - - - - - - - - 127,515 121,994 N/A N/A

Financial liabilities

Interest bearing liabilities

- - 7,106 17,882 332,206 7,106 - - - - 3.51 0.44

Payables - - - - - - - - 16,895 18,045 N/A N/A

Net Fair Values

The net fair values of financial assets and liabilities approximate the carrying values as disclosed in the balance

sheet.Thecompanydoesnothaveanyunrecognisedfinancialinstrumentsattheyearend.



Note28.Financialinstruments(continued)

Credit Risk

The maximum exposure to credit risk at balance date to recognised financial assets is the carrying amount of

thoseassetsasdisclosedinthebalancesheetandnotestothefinancialstatements.

There are no material credit risk exposures to any single debtor or group of debtors under financial instruments

enteredintobytheeconomicentity.

Interest Rate Risk

Interestrateriskreferstotheriskthatthevalueofafinancialinstrumentorcashflowsassociatedwiththe

instrumentwillfluctuateduetochangesinmarketinterestrates.Interestrateriskarisesfromtheinterestbearing

financialassetsandliabilitiesinplacesubjecttovariableinterestrates,asoutlinedabove.

SensitivityAnalysis

Thecompanyhasperformedsensitivityanalysisrelatingtoitsexposuretointerestrateriskatbalancedate.

Thissensitivityanalysisdemonstratestheeffectonthecurrentyearresultsandequitywhichcouldresultfroma

changeininterestrates.

Asat30June2015,theeffectonprofitandequityasaresultofchangesininterestrate,withallothervariables

remainingconstantwouldbeasfollows:

2015 $

2014 $

Changeinprofit/(loss)

Increaseininterestrateby1% (2,246) 1,586

Decreaseininterestrateby1% (2,246) 1,586

Changeinequity

Increaseininterestrateby1% (2,246) 1,586

Decreaseininterestrateby1% (2,246) 1,586


Directors’declarationInaccordancewitharesolutionofthedirectorsofLancefield&RomseyCommunityFinancialServicesLimited,we

state that:

In the opinion of the directors:

(a) thefinancialstatementsandnotesofthecompanyareinaccordancewiththeCorporationsAct2001,

including:

(i) givingatrueandfairviewofthecompany’sfinancialpositionasat30June2015andofitsperformance

forthefinancialyearendedonthatdate;and

(ii) complyingwithAccountingStandards,theCorporationsRegulations2001andothermandatoryprofessional

reportingrequirements;and

(b) therearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebtsasandwhenthey

becomedueandpayable.

(c) theauditedremunerationdisclosuressetoutintheremunerationreportsectionofthedirectors’reportcomply

withAccountingStandardAASB124RelatedPartyDisclosuresandtheCorporationsRegulations2001.

Thisdeclarationismadeinaccordancewitharesolutionoftheboardofdirectors.

Timothy Gerard McCarthy,

Chairman

Signedonthe24thofSeptember2015.


Independent audit report


Independent audit report (continued)

bendigobank.com.au

Lancefield Community Bank® Branch 20A High Street, Lancefield VIC 3435Phone: (03) 5429 1977www.bendigobank.com.au/lancefield

Romsey Community Bank® BranchShop 1, 112 Main Street, Romsey VIC 3434Phone: (03) 5429 5526www.bendigobank.com.au/romsey

Franchisee: Lancefield & Romsey Community Financial Services LimitedPO Box 30, Lancefield VIC 3435ABN: 44 093 517 714

www.bendigobank.com.au (BMPAR15128) (09/15)

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