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Annual Report2013 / 2014

If you are not with CANEGROWERS, you don’t know what you are missing

ABN 43 114 632 325

NOTICE OF ANNUAL GENERAL MEETING

Members of CANEGROWERS Burdekin Limited are invited to attend the2014 Annual General Meeting:

Where: CANEGROWERS Hall, 68 Tenth Street HOME HILL

When: Thursday, 13th November, 2014 commencing at 5.30pm

RSVP: To 4790 3600 or [email protected] Monday 10 November for catering purposes

Business:

1. Receive the Chairman’s Report

2. Receive the Annual Financial Statements, Directors Report & IndependentAudit Report

3. Address by Guest Speakers:Paul Schembri, Chairman of CANEGROWERS QldGreg Beashel, CEO of QSL

4. Review of Directors Remuneration

5. Attend to any other business.

By Order of the Board

Debra BurdenCompany Secretary

ANNUAL GENERAL MEETINGAGENDA

Date: Thursday, 13th November, 2014 commencing at 5:30 pmVenue: CANEGROWERS HALL, 68 Tenth Street, HOME HILL

Estimatedtimes

Actions Presentedby

15 minutes5:30 to 5:45

1. ADMINISTRATION1.1. Meeting Open and Welcome1.2. Quorum and Apologies1.3. Minutes Silence

Phil MaranoChair


2. MINUTES FROM PREVIOUS MEETING Phil MaranoChair


3. CHAIRMAN’S REPORT Phil MaranoChair


4. ANNUAL FINANCIAL REPORT4.1. Financial Report4.2. Directors Report and Declaration4.3. Independent Audit Report

Debra BurdenRegionalManager


5. GUEST SPEAKERS Paul SchembriChair

CANEGROWERS QLD

andGreg BeashelCEO of QSL


6. GENERAL BUSINESS6.1.Review of Director Remuneration6.2.Lucky Door Prize

Phil MaranoChair

7:30 pm 7. CLOSE OF MEETING Phil MaranoChair

Meeting to be followed by light dinner and drinks

Guest Speakers

Paul Schembri is Chairman of CANEGROWERS Queensland and a Director of CANEGROWERS Mackay.

Paul is a cane farmer with 38 years practical experience. He is in a partnership with family members and owns and operates three farms supplying Farleigh Mill, near Mackay.

Paul has travelled extensively in the interests of the industry and has participated in missions to Thailand, London, China, Indonesia and Brazil.

He has a long history of active grower, industry and community representation

Greg Beashel first joined QSL in June, 2000. Prior to being appointed as Managing Director and Chief Executive Officer on 1 February 2012, Greg was responsible for QSL's operations including port terminal management, capital and maintenance management, shipping operations, chartering and trade finance.

Before joining QSL, Greg spent seven years with CSR in a range of roles including operations, sugar marketing, hedging and trading. He has extensive experience in sugar refining and a strong understanding of customer perspectives and requirements.

Greg is responsible for overseeing the strategic direction of the business with the goal of maximising pool returns for members.

Paul Schembri

Greg Beashel

Documentation to support Agenda Item 6.1

Review of Directors Remuneration

Background:

Directors Remuneration was last reviewed at the 2007 AGM and has not been amended since

then. CPI has increased by 19.2% since 2007. The current arrangements restrict payments to

quarterly.

Any change must be made by a special resolution at a general meeting of members. A special

resolution requires 75% of members voting to vote in favour to be carried. Notice is required to be

given to all eligible voting members of the details of a special resolution and all members have the

opportunity to appoint a proxy and to instruct the proxy on how to vote. The result of which is that

the below recommended special resolution cannot be altered at the AGM, it can only be carried or

not carried.

Following are the details of the current remuneration arrangements in accordance with what was

approved by members at the 2007 AGM.

Annual Salary & Annual Travel AllowanceChair $15,000 pa + 60c km to attend 72 meetings in AyrDeputy Chair $10,000 pa + 60c km to attend 48 meetings in AyrDirectors $ 5,000 pa + 60c km to attend 24 meetings in AyrPayments to be made quarterly in arrears paid on 30 Nov, 28 Feb, 31 May, 30 Aug.

Special AssignmentsIn addition to the above, all directors will receive a payment of $250 + travel for Board approvedspecial assignments (>4 hours) and $125 + travel (<4 hours). A fee of 60 cents per kilometre ispayable for travel undertaken in own vehicle to and from place of residence to place of specialmeeting or assignment.

Other costsAny other cost reasonably incurred fulfilling the role of Chairman of the Board, evidenced by receiptand approved by the Board for reimbursement.

Recommended Special Resolution:

1. Director Remuneration:a. Total Director Remuneration for the 2014/15 year should not exceed $85,000 including

superannuation, travel allowances and remuneration for special duties.b. For future years, the Total Director Remuneration is to increase by the annual CPI figure.c. The allocation of the Total Director Remuneration is at the discretion of the Board and

the full amount need not be allocated.

2. Director Expenses:Directors are eligible for re-imbursement for any pre-approved expense reasonably incurred infulfilling the role of Director, providing the expense is evidence by receipt and approved by theBoard, or the Board’s delegate, for reimbursement.

Notes:

1. The recommend amount of $85,000 has been determined based on:a. a 20% increase in the current remuneration for Directorsb. increasing the travel allowance to the current ATO rate of 75 cents per kmc. allowing for Directors to attend a total of 24 special assignment/meetings broken up as

12 > 4 hours and 12 < 4 hours. This is for the total of all Directors not for each individualDirector

d. includes superannuation

2. If the recommended resolution is approved the:a. amount of $85,000 will increase by the CPI amount t each yearb. the Board would determine the break- up of the total amount including the frequency

of paymentsc. the Board would not be required to allocate the full amountd. the amount allocated would be reported to members via the Annual Report

3. Any costs associated with Director training or professional development are separate to theabove.

Members who require further clarification or additional information are encouraged to contact

Debra Burden as the Company Secretary on 0417 709 435 or [email protected]

Your CANEGROWERS Burdekin Directors

David Lando, Russell Jordan, Arthur Woods, Phil Marano, Sib Torrisi, Steve Pilla, Roger Piva & Owen Menkens

CANEGROWERS Burdekin LimitedABN 43 114 632 325

______ Initials of the Chairman Page 1 of 2

MINUTES OF THE ANNUAL GENERAL MEETING OFCANEGROWERS BURDEKIN LTD

ACN: 43 114 632 325HELD AT the Canegrowers Hall, Home Hill

68 Tenth Street, Home Hill Qld 4806On Wednesday, 14th November, 2013

Scheduled commencement time: 7:00 pm

1. Meeting Open, Apologies and WelcomeThe Chairman, Mr Philip Marano, declared the meeting open at 7:15 pm and declared that themeeting quorum of 20 has been met. The names of those members who wished to be noted asapologies for the meeting were read out. The guest speakers, Mr Paul Schembri Chair and MrBrendan Stewart CEO of CANEGROWERS Queensland, were welcomed. A minutes silence washeld in respect of members who have passed since the last AGM.

2. Confirmation of Minutes of the previous AGM

MOTIONThat the Minutes of the AGM of Canegrowers Burdekin Limited held 14th November, 2012, betaken as read and confirmed.Moved: Mr Kevin Mann Seconded: Mr Tom Callow CARRIED

3. Chairman’s ReportsThe Chairman presented his report and answered questions.

MOTIONThat the Chairman’s Report on organisation activities for the financial year ended 30 June, 2013and update on the current year be received.Moved: Mr Gary Stockham Seconded: Mr Laurence Boccalatte CARRIED

4. Financial Report, Directors Report and Independent Audit ReportThe Regional Manager, Mrs Debra Burden, presented and spoke to the Financial Report whichincluded the Directors Report and the Independent Auditors Report. Mrs Burden advised thatthe Report:

has been independently audited by Certified Practicing Accountant William Smith fromCormack and Company;

complies with the Accounting Standards and Corporations regulations; and

gives a true and fair view of the financial position of the company as at 30 June, 2013.

Mrs Burden called for and answered members’ questions on the Financial Report.

MOTION

“That the audited Financial Report for the financial year to 30 June, 2013 together with theDirectors’ Report and the Independent Audit Report thereon be received.”

Moved: Mr Kent Fowler Seconded: Mr Paul Sgarbossa CARRIED

CANEGROWERS Burdekin LimitedABN 43 114 632 325

______ Initials of the Chairman Page 2 of 2

5. Guest Speakers PresentationThe Chairman welcomed to the floor the guest speakers, Mr Paul Schembri and Mr BrendanStewart. Mr Schembri provided his address and answered members’ questions followed by MrStewart. Mr Roger Piva proposed a vote of thanks for the guest speakers.

6. General BusinessNew Membership incentive: The Chairman advised that the Board are considering offering anincentive to encourage increased membership. This incentive is based on offering a 50%discount on the Canegrowers Burdekin membership levy. The Board are interested in membersview on this. A general discussion occurred. Overall members were not opposed to the idea.The Chairman thanked members for their considered input.

Lucky Door Prize: Mr Paul Schembri drew the lucky door prize. Mr John Achurra was thewinner.

The Chairman called for any further questions. There were no additional questions.

7. The Meeting closed at 9:15 pm.

Signed as a true and correct record of the meeting of the 2013 AGM of Canegrowers Burdekin Ltd.

Mr Philip MaranoChairman

Date: __________________

CHAIRMAN’SReport

On behalf of the Board of CANEGROWERS

Burdekin Ltd (CBL) I’m pleased to present the

Annual Report for the financial year ended 30

June, 2014.

The 2013 crop was the second lowest in the

ƉĂƐƚϭϬǇĞĂƌƐĂƚĂĚŝƐĂƉƉŽŝŶƟŶŐϳ ϯŵƚŽŶŶĞƐ

which was well below the region’s average 8m

tonnes. Average CCS was 14.6 and Fibre

averaged 15.5. In response to Wilmar’s

significant investment in capital improvements

and maintenance, all four mills performed well

with an average reliability of just over 90%.

The weather was kind with less than one hour

lost to wet weather. The small crop, combined

with the mills performing well and perfect

harvest weather resulted in the crush being

completed by mid-October. This early finish

has contributed to a much improved crop for

ƚŚĞϮϬϭϰƐĞĂƐŽŶǁ ŚŝĐŚŚĂƐďĞĞŶĞƐƟŵĂƚĞĚĂƚ

7.98m tonnes.

zĞůůŽǁ ĂŶŽƉǇ ǇŶĚƌŽŵĞ;z^ͿĐŽŶƟŶƵĞƐƚŽďĞ

Ă ǁ ŽƌƌǇŝŶŐ ƵŶĚŝĂŐŶŽƐĞĚ ĐŽŶĚŝƟŽŶ ĂŶĚ

although it seemed to have moved of the radar

for a period it was back with a vengeance in

January and February with some crops being

very significantly impacted.

CANEGROWERSBurdekin exists: To beĂŶĞī ĞĐƟǀ ĞĞŶĚƵƌŝŶŐand unifying force in

maximising thereturns to canegrowers in the

Burdekin, now andfor the future.

Burdekin Crush Details 2013

Total Cane Harvested (tonnes) 7,292,861

Cane crushed at Invicta Mill 2.5m

35%

Cane crushed at Pioneer Mill 1.6m

22%

Cane crushed at Kalamia Mill 1.5m

20%

Cane crushed at Inkerman Mill 1.7m

23%

Average CCS 14.6

Average Fibre 15.5

Total Sugar produced (tonnes) 1.1m

Total Molasses (tonnes) 250k

Average hourly crushing rate of all Mills

(tonnes)

2,529

Total Mill Reliability/Availability 90%

Reliability rate for Invicta Mill 87%

Reliability rate for Pioneer Mill 93%

Reliability rate for Kalamia Mill 92%

Reliability rate for Inkerman Mill 91%

Total Number of Farm Management

units

TBA

Area of cane land harvested (hectares) 71,403

E ƵŵďĞƌŽĨ, Ăƌǀ ĞƐƟŶŐ' ƌŽƵƉƐ 111

>ŽƐƚƟŵĞƚŽǁ Ğƚǁ ĞĂƚŚĞƌ 0.7 days

Chairman Phil Marano

The cane industry contributes between $250m to $300m each year into the Burdekin community. The

consistently rising input costs and the below average crop for 2013 resulted in many growers suffering

financially. At CANEGROWERS Burdekin we have been giving our all to fight to reduce growers key input

costs. We refer to this work as our Project F.I.R.E. as follows:

FĞƌƟůŝƐĞƌ throughout 2013 a huge effort had been put into increasing the tonnage of Ravensdown

ĨĞƌƟůŝƐĞƌƉƵƌĐŚĂƐĞĚďǇŐƌŽǁ ĞƌƐŝŶƚŚŝƐƌĞŐŝŽŶ ĂƌůǇŽŶŝƚǁ ĂƐŝĚĞŶƟĮ ĞĚƚŚĂƚZĂǀ ĞŶƐĚŽǁ Ŷ

may pull out of the Queensland market unless the tonnage increased. Our “Retain

Ravensdown in the Burdekin” project assisted in the region’s tonnage increasing from

4,500 tonnes to 8,600 tonnes. As we all know this was not enough and with only 37% of

ŐƌŽǁ ĞƌƐĂĐƌŽƐƐY ƵĞĞŶƐůĂŶĚƐƵƉƉŽƌƟŶŐƚŚĞĐŽŶĐĞƉƚ ZĂǀ ĞŶƐĚŽǁ ŶƉƵůůĞĚŽƵƚŽĨƚŚĞŵĂƌŬĞƚ

in May, 2014.

Insurance ƚŚĞĐŽƐƚŽĨŝŶƐƵƌĂŶĐĞŝŶƚŚĞƵƌĚĞŬŝŶŝƐƉƌŽŚŝďŝƟǀ ĞĨŽƌďŽƚŚĨĂƌŵĞƌƐĂŶĚŶŽŶ-farmers. In

ĂĚĚŝƟŽŶ ĨĂƌŵĞƌƐŚĂǀ ĞůŝŵŝƚĞĚĂĐĐĞƐƐƚŽĐŽŵƉĞƟƟŽŶ /ƚŝƐĨŽƌƚŚĞƐĞƌĞĂƐŽŶƐƚŚĂƚ

CANEGROWERS Insurance was implemented. In the Burdekin, we are working to assist

growers obtain the best possible deal for their insurance needs together with access to a

quality service, even if this means advising growers to stay with their current insurance

provider.

Rates ĐĂŶĞĨĂƌŵĞƌƐĂƌĞďĞŝŶŐƵŶĨĂŝƌůǇƚƌĞĂƚĞĚďǇƵƌĚĞŬŝŶ ŚŝƌĞŽƵŶĐŝůǁ ŝƚŚƚŚĞƚŽƚĂůǀ ĂůƵĂƟŽŶŽĨ

cane land in the region at 26% but the Council has unfairly allocated 46% of General Rates

ƚŽĐĂŶĞůĂŶĚ t ĞŚĂǀ ĞŵĂĚĞƌĞƉƌĞƐĞŶƚĂƟŽŶƐƚŽƚŚĞŽƵŶĐŝůŽǀ ĞƌƚŚĞƉĂƐƚϯǇĞĂƌƐ /Ŷ:ƵŶĞ

2014 the Council announced a shocker of a budget and allocated a further 5.51% increase

to the cane land category. We will not cease in our efforts to ensure cane farmers are

fairly treated.

Electricity the extreme electricity price increases have already resulted in prices doubling in the last

Į ǀ ĞǇĞĂƌƐĂŶĚŚĂǀ ĞƚŚĞƉŽƚĞŶƟĂůƚŽƉƵƚŐƌŽǁ ĞƌƐŽƵƚŽĨďƵƐŝŶĞƐƐ A significant effort has

been made by the Burdekin team on this important topic. We are working with

CANEGROWERS Qld to lobby the Government to implement a trial whereby a 33%

ƌĞĚƵĐƟŽŶŝƐŝŵƉůĞŵĞŶƚĨŽƌŝƌƌŝŐĂƟŽŶƚĂƌŝī Ɛ ĞƉĂƌĂƚĞůǇE ' ZK t Z^ƵƌĚĞŬŝŶŚĞůĚĂ

^ŽůĂƌŶĞƌŐǇ&ŽƌƵŵŝŶĂŶĂƩ ĞŵƉƚƚŽƉƌŽǀ ŝĚĞŐƌŽǁ ĞƌƐǁ ŝƚŚĂŶĂůƚĞƌŶĂƟǀ ĞŽƉƟŽŶĂŶĚŚĂǀ Ğ

ƉůĂǇĞĚĂǀ ĞƌǇĂĐƟǀ ĞƉĂƌƚŝŶƚŚĞ/&D ŶĞƌŐǇĸ ĐŝĞŶĐǇƉƌŽũĞĐƚǁ ŚŝĐŚŝƐĨŽĐƵƐĞĚŽŶ

ĞŵƉŽǁ ĞƌŝŶŐŝƌƌŝŐĂƚŽƌƐƚŽĂĚŽƉƚĞŶĞƌŐǇĞĸ ĐŝĞŶƚƉƌĂĐƟĐĞƐĂŶĚƚĞĐŚŶŽůŽŐŝĞƐĂŶĚƚŽƐŝŵƉůǇ

ĞŶƐƵƌĞƚŚĞǇĂƌĞŽŶƚŚĞďĞƐƚƚĂƌŝī ĨŽƌƚŚĞŝƌŶĞĞĚƐ /ŶĂĚĚŝƟŽŶ ǁ ĞĂƌĞĐƵƌƌĞŶƚůǇƚĂůŬŝŶŐǁ ŝƚŚ

ĂŶŝŶŶŽǀ ĂƟǀ ĞĐŽŵƉĂŶǇǁ ŝƚŚĂdŚĞƌŵĂů ŽůĂƌWƵŵƉƚŚĂƚŵĂǇƉƌŽǀ ŝĚĞĂŶŽƉƟŽŶĨŽƌŐƌŽǁ ĞƌƐ

to reduce their reliance on electricity, albeit this is very early days.

/ŶƌĞĐŽŐŶŝƟŽŶŽĨƚŚĞŝŵƉĂĐƚŽĨƌŝƐŝŶŐŝŶƉƵƚĐŽƐƚƐŽŶŐƌŽǁ ĞƌƐ E ' ZK t Z^ƵƌĚĞŬŝŶŚĂƐƌĞƚĂŝŶĞĚ

membership fees and water perils levies at the same rate (23 cents) since 2009. This has resulted in us

being sharply focused on doing more with less.

From a financial aspect, your company returned a small loss of $1,875 for the 2013/2014 year which

ƌĞŇĞĐƚƐŽƵƌĞƚŚŽƐŽĨĂŵĞŵďĞƌŽǁ ŶĞĚŽƌŐĂŶŝƐĂƟŽŶǁ ŝƚŚĂĨŽĐƵƐŽĨƉƌŽĮ ƟŶŐŵĞŵďĞƌƐǁ ŝƚŚƚŚĞƐĞƌǀ ŝĐĞƐ

provided.

ǇĐůŽŶĞǇůĂŶǁ ĂƐĂŶĞĂƌŵŝƐƐŝŶ:ĂŶƵĂƌǇĂŶĚǇĐůŽŶĞ/ƚĂǁ ĂƐĂŚŝƚŝŶƉƌŝůůƚŚŽƵŐŚƚŚĞŝŶŝƟĂůŽƉŝŶŝŽŶǁ ĂƐ

ƚŚĂƚǁ ĞŚĂĚĞƐĐĂƉĞĚǁ ŝƚŚƌĞůĂƟǀ ĞůǇŵŝŶŽƌĚĂŵĂŐĞĨƌŽŵǇĐůŽŶĞ/ƚĂŝƚǁ ĂƐŶŽƚƵŶƟůƚŚĞŝŵƉĂĐƚĞĚƉĂĚĚŽĐŬƐ

ǁ ĞƌĞŚĂƌǀ ĞƐƚĞĚƚŚĂƚƚŚĞƚƌƵĞĚĂŵĂŐĞǁ ĂƐƌĞĂůŝƐĞĚǁ ŝƚŚƐŽŵĞƉĂĚĚŽĐŬƐƚŚĂƚŚĂĚďĞĞŶĞƐƟŵĂƚĞĚĂƚϭϭϱ

tonnes per hectare returning only 80 tonnes, due to the snapped cane.

Towards the end of 2013, CANEGROWERS Burdekin was approached by

ĐŽŶĐĞƌŶĞĚ, ŽŵĞ, ŝůůŐƌŽǁ ĞƌƐ ĂŵĂŶĚdŽƌƌĞƐD ĂƌĂŶŽĂŶĚĂƐŬĞĚƚŽŝŶǀ ĞƐƟŐĂƚĞ

ŝĨƚŚĞƌĞǁ ĂƐĂƐŽůƵƟŽŶĨŽƌƚŚĞĚŝƐƉŽƐĂůŽƌƌĞĐǇĐůŝŶŐŽĨƵƐĞĚŇƵŵŝŶŐ^Ăŵ

ĂĚǀ ŝƐĞĚƚŚĞǇǁ ĞƌĞĐŽŶĐĞƌŶĞĚƚŚĂƚƚŚĞĐƵƌƌĞŶƚŵĂŝŶŽƉƟŽŶĨŽƌƚŚĞƵƐĞĚŇƵŵŝŶŐ

ǁ ĂƐĨŽƌŝƚƚŽĞŶĚƵƉĂƐůĂŶĚĮ ůůĂŶĚŝŶƐŽŵĞĐĂƐĞƐǁ ĂƐďƵƌŶƚĂĐĐŝĚĞŶƚůǇ/ŶŝƟĂů

ŝŶǀ ĞƐƟŐĂƟŽŶƐŝŶĚŝĐĂƚĞĚƚŚĞƐŝǌĞŽĨƚŚĞƉƌŽďůĞŵĐŽƵůĚďĞŽǀ ĞƌϭϬϬϬϬϬŵĞƚƌĞƐ

of used fluming in the Burdekin each year. Several brainstorming sessions were

ŚĞůĚ ǁ ŝƚŚ ĂƩ ĞŶĚĞĞƐ ĨƌŽŵ E ' ZK t Z^ ƵƌĚĞŬŝŶ ůŽĐĂůĐĂŶĞ ĨĂƌŵĞƌƐ

Burdekin Shire Council, growcom and the Department of State Development,

Infrastructure and Planning. ƉĞƌŵĂŶĞŶƚĨƌĞĞƐŽůƵƟŽŶǁ ĂƐƌĞƐŽůǀ ĞĚĨŽůůŽǁ ŝŶŐ

ƚŚĞĐŽŵƉůĞƟŽŶŽĨĂd, >/E /ƚŚĂƚǁ ĂƐŚĞůĚĂƚE ' ZK t Z^, Ăůů, ŽŵĞ

Hill.

The Minister for Natural Resources and Mines, Andrew

Cripps officially launched the Rural Water Use

Efficiency – /ƌƌŝŐĂƟŽŶ&ƵƚƵƌĞƐƉƌŽŐƌĂŵŝŶ ' ŝƌƵŽŶ

March 2014. Over $1.6m has been targeted for the

Burdekin region over a 4 year period from this

program. The RWUE-/&ůĂƵŶĐŚŽĐĐƵƌƌĞĚĂŌĞƌĂ

ƉĂƌƟĐƵůĂƌůǇƐƚƌĞƐƐĨƵůĞĐĞŵďĞƌĂŶĚ:ĂŶƵĂƌǇĨŽƌ' ŝƌƵ

irrigators who suffered from insufficient access to

ŝƌƌŝŐĂƟŽŶǁ ĂƚĞƌŽǀ ĞƌƚŚĞŚŽƚĚƌǇĞĐĞŵďĞƌ :ĂŶƵĂƌǇ

ĐŽŶĚŝƟŽŶƐ KŶďĞŚĂůĨŽĨƚŚĞƐĞŐƌŽǁ ĞƌƐǁ ĞƚŚĂŶŬ

CANEGROWERS Qld for their assistance during what

ǁ ĂƐĂƉƌĞƩǇǁ ŽƌƌǇŝŶŐƟŵĞ

The SmartCane BMP was implemented for the region, with long term CANEGROWERS Burdekin employee

' ĂƌǇ, ĂůůŝĚĂǇĂƉƉŽŝŶƚĞĚĂƐƚŚĞ ŵĂƌƚĂŶĞD W&ĂĐŝůŝƚĂƚŽƌdŚĞƉŽƐŝƟŽŶĐŚĂŶŐĞĨŽƌ' ĂƌǇƌĞƐƵůƚĞĚŝŶŽƵƌ

ĐĞĂƐŝŶŐƚŽŽī ĞƌƐŽŵĞƐĞƌǀ ŝĐĞƐƚŚĂƚŚĂĚƉƌĞǀ ŝŽƵƐůǇďĞŶĞĮ ƚĞĚƚŚĞĞŶƟƌĞĐĂŶĞŝŶĚƵƐƚƌǇŝŶƚŚĞƵƌĚĞŬŝŶƐƵĐŚĂƐ

^ŝĚŝŶŐ/ŶĚƵĐƟŽŶƐĂŶĚŝƐƐƵĞƐƌĞůĂƟŶŐƚŽƚƌĂŶƐƉŽƌƚĂŶĚƐĂĨĞƚǇ

ŌĞƌƐĞǀ ĞƌĂůǇĞĂƌƐĞī ŽƌƚƚŚĞƵƌĚĞŬŝŶĂŶĞƵĚŝƟŶŐ Ğƌǀ ŝĐĞ;^ͿŚĂƐĮ ŶĂůůǇďĞĞŶĨŽƌŵĞĚ dŚĞŶĞǁ

company, which is chaired by CANEGROWERS Burdekin Director Owen Menkens, has the role of

ƵŶĚĞƌƚĂŬŝŶŐƚŚĞĐĂŶĞĂƵĚŝƟŶŐƐĞƌǀ ŝĐĞƐďǇƌĞĐƌƵŝƟŶŐĞŵƉůŽǇŝŶŐĂŶĚƚƌĂŝŶŝŶŐƚŚĞĐĂŶĞĂƵĚŝƚŽƌƐ dŚŝƐŝŶŝƟĂƟǀ Ğ

was implemented on the request of growers who were keen to see the cane auditors independently

ĞŵƉůŽǇĞĚ ƐŝŶĐĞĚĞƌĞŐƵůĂƟŽŶƚŚĞĞŵƉůŽǇĞƌŚĂƐďĞĞŶt ŝůŵĂƌ

CANEGROWERS Burdekin provided support to Japanese company

SOL Holdings who undertook a trial in the region of Super Sweet

Sorghum. The trial crop was undertaken by well-known Home

Hill grower Kevin Mann. The general view was that this was an

ŝŶƚĞƌĞƐƟŶŐ ƚƌŝĂů ƚŚĂƚŚĂĚƉŽƚĞŶƟĂůďƵƚŵŽƌĞƌĞƐĞĂƌĐŚǁ ĂƐ

required.

CANEGROWERS Burdekin was proud to provide support

throughout the year to the Burdekin Women in Sugar, CORES –

ŽŵŵƵŶŝƚǇ ZĞƐƉŽŶƐĞ ƚŽ ůŝŵŝŶĂƟŶŐ ^ƵŝĐŝĚĞ ĂŶĚ ƚŽ ƚŚĞ

Queensland Heritage Rally.

Torres and Sam Marano

Andrew Cripps Minister for Natural Resources &

Mines, Rosemary Menkens MP Member for

Burdekin, Steve Pilla, Phil Marano & Sib Torrisi

Kevin Mann at the Super Sorghum Trial

KďƐĞƌǀ ĂƟŽŶ

t ĞŚĂǀ ĞďĞĞŶƉĂƌƟĐƵůĂƌůǇƉůĞĂƐĞĚǁ ŝƚŚŽƵƌŵŽǀ ĞŝŶƚŽƐŽĐŝĂůŵĞĚŝĂǁ ŝƚŚŽƵƌĨŽůůŽǁ ŝŶŐƐŽŶ&ĂĐĞďŽŽŬĂŶĚ

dǁ ŝƩ Ğƌ ĐŽŶƐŝƐƚĞŶƚůǇ ŐƌŽǁ ŝŶŐ KƵƌ ǁ ĞĞŬůǇ Ğ-ŶĞǁ ƐůĞƩ Ğƌ canenews ĐŽŶƟŶƵĞƐ ƚŽ ďĞ ŽƵƌ ƉƌŝŶĐŝƉůĞ

ĐŽŵŵƵŶŝĐĂƟŽŶƚŽŽů

dŚĞůŝƟŐĂƟŽŶĐĂƐĞĂŐĂŝŶƐƚt ŝůŵĂƌƌĞůĂƟŶŐƚŽƚŚĞϮϬϭϬĚŝƐƉƵƚĞĐŽŶƟŶƵĞƐǁ ŝƚŚƚŚĞŐŽĂůƚŚĞĐĂƐĞǁ ŝůůďĞ

before the Supreme Court prior to the end of the current financial year.

KŶƚŚĞƚŽƉŝĐŽĨt ŝůŵĂƌƚŚĞĂŶŶŽƵŶĐĞŵĞŶƚďǇt ŝůŵĂƌŽĨƚŚĞŝƌŝŶƚĞŶƟŽŶƚŽĞǆŝƚY ^>ĂƚƚŚĞĞŶĚŽĨƚŚĞϮϬϭϲ

crush has damaged growers confidence and has resulted in significant resources being dedicated to this

ŝƐƐƵĞƚŚĂƚŽƚŚĞƌǁ ŝƐĞĐŽƵůĚŚĂǀ ĞďĞĞŶƵƟůŝƐĞĚƚŽĂƐƐŝƐƚŐƌŽǁ ĞƌƐŝŵƉƌŽǀ ĞƚŚĞŝƌďƵƐŝŶĞƐƐĞƐ ƚĂƐƉĞĐŝĂů

ŵĞĞƟŶŐŚĞůĚŝŶD ĂǇĐůŽƐĞƚŽϭϬϬŵĞŵďĞƌƐŽĨE ' ZK t Z^ƵƌĚĞŬŝŶǀ ŽƚĞĚƵŶĂŶŝŵŽƵƐůǇƚŽĐŽŶĚĞŵŶ

t ŝůŵĂƌƐĚĞĐŝƐŝŽŶƚŽĞǆŝƚY ^> t ŝůŵĂƌĐŽŶƟŶƵĞƐƚŽƌĞĨƵƐĞƚŽƌĞƐƉĞĐƚŐƌŽǁ ĞƌƐƌŝŐŚƚƐĂŶĚŝƐƉĞƌƐŝƐƟŶŐŝŶ

moving down the path of their NO CHOICE model.

ůƚŚŽƵŐŚŝƚŝƐĚŝĸ ĐƵůƚƚŽƉƌĞĚŝĐƚǁ ŚĂƚƚŚĞŵĂƌŬĞƟŶŐĂƌƌĂŶŐĞŵĞŶƚƐǁ ŝůůďĞĨŽƌϮϬϭϳ ĂŶĞŐƌŽǁ ĞƌƐƵƌĚĞŬŝŶŝƐ

working with our fellow CANEGROWERS companies who supply Wilmar mills, being Herbert River,

Proserpine and Plane Creek, to develop a united best of the best CSA for 2017. This united group

represents 10 million tonnes of cane.

In closing, I thank our dedicated team of Debra Burden, Wayne Smith, Gary Halliday, Michelle Andrews,

dŝī ĂŶǇ' ŝĂƌĚŝŶĂĂŶĚD ĂƌƟŶĞĞŶŐŽĂ dŚŝƐƚĞĂŵ ƐĨŽĐƵƐŝƐŽŶƉƌŽǀ ŝĚŝŶŐƚŚĞďĞƐƚƉŽƐƐŝďůĞƐĞƌǀ ŝĐĞƚŽŽƵƌ

ŵĞŵďĞƌƐĂŶĚǁ ĞĂƌĞĂůůŽƉƟŵŝƐƟĐĂďŽƵƚƚŚĞĨƵƚƵƌĞĂŶĚŵŽǀ ŝŶŐƚŽǁ ĂƌĚƐŽƵƌŵŝƐƐŝŽŶŽĨďĞĐŽŵŝŶŐĂƚƌƵůǇ

Ğī ĞĐƟǀ ĞĞŶĚƵƌŝŶŐĂŶĚƵŶŝĨǇŝŶŐĨŽƌĐĞŝŶŵĂǆŝŵŝƐŝŶŐƚŚĞƉƌŽĮ ƚĂďŝůŝƚǇƉƌŽĚƵĐƟǀ ŝƚǇĂŶĚƐƵƐƚĂŝŶĂďŝůŝƚǇŽĨ

cane growers in the Burdekin, now and for the future.

Yours sincerely

Phil Marano

Chair

Season Tonnes Harvested Ha Harvested CCSYield cane

per Ha

2013 7,292,861 71,403 14.61 102.1

2012 7,479,182 71,245 14.30 105.0

2011 9,551,172 79,668 13.63 119.9

2010 6,460,730 49,838 13.71 129.6

2009 7,233,504 67,457 15.31 107.2

2008 7,645,274 69,887 14.85 109.4

2007 8,225,415 69,849 14.88 117.8

2006 8,024,978 69,667 14.94 115.2

2005 8,434,822 71,540 14.70 117.9

2004 8,907,291 74,028 14.97 120.3

2003 9,165,575 75,500 15.04 121.4

2002 8,627,313 75,477 15.06 114.3

Average for last 12 years 8,087,343 70,463 14.67 115.0

Average for last 10 years 7,925,523 69,458 14.59 114.4

12 Years Burdekin Crop History

2006 2007 2008 2009 2010 2011 2012 2013

Total 8,024,978 8,199,185 7,645,089 7,233,502 6,460,197 9,551,951 7,479,182 7,292,854

% 51% 50% 46% 46% 47% 45% 43% 33%

CBL 4,101,212 4,123,536 3,528,693 3,354,882 3,022,958 4,280,625 3,242,487 2,375,370

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Ton

ne

s

Burdekin District Tonnes CrushedCANEGROWERS Burdekin Membership Tonnes

2006 2007 2008 2009 2010 2011 2012 2013

Invicta 75% 70% 65% 61% 61% 59% 55% 22%

Inkerman 89% 89% 88% 80% 91% 86% 88% 88%

Pioneer 13% 14% 13% 24% 19% 14% 14% 15%

Kalamia 10% 8% 5% 5% 4% 5% 5% 6%

Total 51% 50% 46% 46% 47% 45% 43% 33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% CBL Members Tonnes from Each Mill

CANEGROWERS Burdekin Limited (A company limited by guarantee)

Annual financial report For the year ended 30 June 2014

Contents to financial report

Corporate information.................................................................................................. 1

Directors report ............................................................................................................ 2

Auditors’ declaration of independence ........................................................................ 4

Directors’ qualifications, experience and special responsibilities ................................ 5

Statement of comprehensive income .......................................................................... 6

Statement of financial position .................................................................................... 7

Statement of changes in funds ..................................................................................... 8

Statement of cash flows ............................................................................................... 9

Notes to the financial statements ................................................................................ 10

Directors’ declaration ................................................................................................... 18

Independent audit report ............................................................................................. 19

CANEGROWERS Burdekin Limited

1

Corporate Information

ABN 43 114 632 325

BAS Agent 24762820

_____________________________________________________

Directors Philip Marano (Chair)

David Lando (Deputy Chair)

Russell Jordan

Owen Menkens

Steven Pilla

Roger Piva

Isidoro Torrisi

Arthur Woods

_____________________________________________________

Company Secretary Debra Burden B. Bus FAICD FAIM

_____________________________________________________

Registered office and 141 Young Street

Principal place of business Ayr, Qld 4807

_____________________________________________________

Auditors Cormack & Company

Certified Practising Accountants

_____________________________________________________


2

Directors Report

Your directors present this report to the members of CANEGROWERS Burdekin Limited (the company) for the year

ended 30 June 2014.

Directors The names of each person who has been a director during the year and to the date of this report are: A – Number of meetings attended B – Number of meetings held during the time the director held office during the year

Board

Date appointed Date of cessation A B

Philip Mark Marano - Chair 7 Jun 2005 - 10 11

David Bruno Lando - Deputy Chair 7 Jun 2005 - 11 11

Russell John Jordan 1 May 2010 - 10 11

Owen Raymond Menkens 1 May 2010 - 11 11

Steven Robert Pilla 1 May 2013 - 9 11

Roger David Piva 1 May 2013 - 11 11

Isidoro Torrisi 1 May 2013 - 11 11

Arthur Phillip Woods 1 May 2013 - 11 11

Details of directors’ qualifications, experience and special responsibilities can be found on page 5 of this report.

Short and long-term objectives and strategy The company’s short and long-term objectives are to:

provide strong representation in the Burdekin for members and advance their interests

enhance the profitability and sustainability of sugar cane growing; and

be part of a strong state-wide organisation representing the interest of members.

The company’s strategies for achieving these objectives include:

Positive and collaborative relationships with Wilmar and other industry stakeholders

Providing a quality Cane Supply Agreement and contract after care

Helping members to reduce costs

Building membership to retain the position as the largest collective in the Burdekin

Providing high quality service to members

Principal activities The company’s principal activities during the year were:

Providing a quality Cane Supply Agreement and contract after care

Lobbying to reduce costs to members including but not limited to fertiliser, insurance, rates and electricity

Providing services to members

Keeping members well informed of industry matters

These activities have assisted the company in achieving its objectives by enabling it to:

provide strong representation in the Burdekin for members and advance their interests

reduce the increasing costs to members through its lobbying on fertiliser, insurance, rates and electricity

enhance the profitability and sustainability of sugar cane growing; and

be part of a strong state-wide organisation representing the interest of Members.


3

Members’ guarantee In accordance with the company’s constitution, each Member of the Company undertakes to contribute to the assets

of the Company in the event of its being wound up while a Member or within one year after ceasing to be a Member

for the payment of the debts and liabilities of the Company contracted before ceasing to be a Member and of the

costs charges and expenses of winding up and for adjustment of the rights of the contributors among themselves,

such amount as may be required, not exceeding $2.

Auditors’ independence

The auditors’ declaration appears on page 4 and forms part of the Directors’ report for the year ended 30 June 2014.

Signed in accordance with a resolution of the directors made pursuant to s.298(2) of the Corporations Act.

On behalf of the directors:

Philip Marano (Director)

Dated this 14th

day of October 2014


4

Auditors’ declaration of independence


5

Directors’ qualifications, experience and special responsibilities

Name Qualifications Experience Special responsibilities

Philip Mark Marano Board member since 2005. Cane grower in the Inkerman area, Director Inkerman Cane Growers Organisation Ltd, Director BIG Co-op.

Chair, CSA negotiator, QCGO Policy Council

David Bruno Lando Board member since 2005. Cane grower in the Pioneer area. QSL Grower Representative Member.

Deputy Chair, CSA negotiator, QCGO Director, QCGO Policy Council

Russell John Jordan Mechanical Trade Board member since 2010. Cane grower in the Invicta area. QSL Grower Representative Member.

QCGO Policy Council

Owen Raymond Menkens Bachelor of Commerce Board member since 2010. Cane grower in the Inkerman area, Chair Inkerman Cane Growers Organisation Ltd.

QCGO Director, QCGO Policy Council, BCAS Director & Chair

Steven Robert Pilla Board member since 2013. Cane grower in the Invicta area

SRA Productivity Research Advisory Committee

Roger David Piva Diploma of Tropical Agriculture

Board member since 2013. Cane grower in the Inkerman area, Director Inkerman Cane Growers Organisation Ltd. QSL Grower Representative Member.

CSA negotiator

Isidoro Torrisi Board member since 2013. Cane grower in the Invicta area

Arthur Phillip Woods Qualified Diesel Fitter Board member since 2013. Cane grower in the Inkerman area, Director Inkerman Cane Growers Organisation Ltd. SRA Grower Delegate.

CANEGROWERS Electricity Committee

* QCGO - Queensland Cane Growers Organisation

* CSA - Cane Supply Agreement

*BCAS – Burdekin Cane Audit Services Limited


6

Financial statements for the year ended 30 June 2014

Statement of comprehensive income

Note 2014

2013

$

$

Revenues from Ordinary Activities 2a 662,315

839,215

Expenses from Ordinary Activities 2b 664,190

783,110

Profit from Ordinary Activities before Income Tax Expense (1,875)

56,105

Income tax relating to ordinary activities

-

-

Net profit from ordinary activities after income tax expense attributable to members of the Board

(1,875)

56,105

Income tax relating to extraordinary activities

-

-

Net profit from ordinary and extraordinary activities after income tax expense attributable to members of the Board

(1,875)

56,105

Total changes in equity other than those resulting from transactions with owners as owners

(1,875)

56,105

The statement of comprehensive income is to be read in conjunction with the attached notes


7


Statement of financial position

Note

2014

2013

$

$

CURRENT ASSETS

Cash Assets 3

2,512,432

2,258,248

Receivables 4

62,916

45,366

TOTAL CURRENT ASSETS

2,575,348

2,303,614

NON-CURRENT ASSETS

Property, Plant and Equipment 5

584,755

599,904

TOTAL NON-CURRENT ASSETS

584,755

599,904

TOTAL ASSETS

3,160,103

2,903,518

CURRENT LIABILITIES

Payables 6

1,325,620

1,124,555

Provisions 7

297,693

183,085

TOTAL CURRENT LIABILITIES

1,623,313

1,307,640

NON-CURRENT LIABILITIES

Provision for Long Service Leave 7

25,566

38,565

TOTAL NON-CURRENT LIABILITIES

25,566

38,565

TOTAL LIABILITIES

1,648,878

1,346,205

NET ASSETS

$ 1,511,224

$ 1,557,314

EQUITY

Accumulated Funds 8

772,240 774,115

Asset Revaluation Reserve 9

88,984

133,199

Water Perils Crop Compensation Reserve 10 650,000 650,000

TOTAL EQUITY

$ 1,511,224

$ 1,557,314



8


Statement of changes in funds

Accumulated

Asset

Other

Total

Total

Surplus

Revaluation

Reserves

2014

2013

Reserve

Note $

$

$

$

$

Balance at the beginning of the

-

-

-

1,557,314

1,501,209

financial year

Increase / decrease on revaluation of

-

(44,215)

-

(44,215)

-

non-current assets

Transfers to Reserves -

-

-

-

Transfers from Reserves

-

-

-

-

Net Results from Operations

(1,875)

-

-

(1,875)

56,105

Balance at the end

of the financial year.

(1,875) (44,215) -

1,511,224

1,557,314



9


Statement of cash flows

Note

2014

2013

$

$

CASH FLOWS FROM OPERATING ACTIVITIES

Interest Received

13,335

23,929

Other Operating Revenues

624,018

776,690

Employee Expenses

(458,582)

(562,091)

Other Expenses

157,667

118,547

Net Cash provided by (used in) operating activities 11 (b) 336,438

357,074

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant and Equipment

(82,254)

(127,158)

Proceeds from Investments

-

-

Net Cash provided used in investing activities

(82,254)

(127,158)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Cash provided by financing activities

-

-

NET INCREASE (DECREASE) IN CASH HELD

254,184

229,916

Cash at the Beginning of the Financial Year

2,258,248

2,028,332

Cash at the End of the Financial Year 11 (a) 2,512,432

2,258,248



10


Notes to the financial statements

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING PRACTICES

The financial report is for CANEGROWERS Burdekin Limited as an individual entity. The entity is a “Not For Profit” public company

limited by guarantee, incorporated and domiciled in Australia.

Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting

Standards, the interpretations and other authoritive pronouncements of the Australian Accounting Standards Board and the

Corporations Act 2001.

The Financial report has been prepared on an accruals basis and is based on historical costs and does not take into account

changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the

consideration given in exchange for assets.

The following is a summary of the material accounting policies adopted by the economic entity in the preparation of the financial

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

(a) Revenue

Revenue from the sale of goods is recognised upon delivery of goods to customers. Grant revenue is recognised in the income

statement when it is controlled. When there are conditions attached to grant revenue relating to the use of those grants for

specific purposes it is recognised in the balance sheet as a liability until such conditions are met or services provided.

Revenue from rendering a service is recognised upon delivery of the service to the customers.

All revenue is stated net of the amount of goods and services tax (GST).

(b) Income Tax

In accordance with Section 50-40 of the Income Tax Assessment Act 1997, the Organisation is exempt from paying Income Tax.

(c) Stocks

Stocks are valued at the lower of cost or net realisable value.

(d) Fixed Assets

Fixed assets are measured on the cost basis less depreciation and impairment losses.

(e) Depreciation

Depreciation is provided on all fixed assets, other than land, using a diminishing value method Gains or losses arising from the sale

or disposal of fixed assets are brought to account in the determination of the profit for the period, except for substantial gains or

losses which are included as non-operating (extraordinary) income.

(f) Provisions

Provisions have been made for employees' long service and recreational leave, in a special reserve account. Sick pay is brought to

account as incurred.

(g) Contingent Assets/Liabilities

There were no known contingent assets/liabilities of a significant nature at 30th June 2014.


11


Notes to the financial statements (continued)

2014

2013

$

$

NOTE 2: PROFIT FROM ORDINARY ACTIVITIES

Profit from ordinary activities before income tax has been determined after:

(a) Revenue:

Operating Income - Membership Fees

473,340

669,572

Interest Income

13,335

23,929

Net Profit on Disposal of Property, Plant & Equipment

7,412

18,610

Administrative Services & Project Income

93,991

56,845

Fire Perils Surplus

6,960

14,073

Commissions

25,668

24,287

Other Income

41,608

31,899

662,315

839,215

(b) Expenses:

Depreciation of Property, Plant and Equipment

60,601

50,613

Employee Expenses Superannuation

38,737

44,889

Wages

384,528

501,655

Other Employment Expenses

49,483

16,332

472,748

562,876

Bad and Doubtful Debts written off

2,309

-

Auditor's Remuneration:

500

500

Administration Expenses

21,470

43,813

Communication Expenses

24,059

39,602

Field Expenses

16,197

16,853

Legal Expenses

-

-

Insurance Brokers Service Loss

22,592

13,194

Other Expenses

43,715

55,660

664,190 783,110


12



2014 2013

NOTE 3: CASH ASSETS

$

$

Cash on Hand

650

650

Cash at Bank - General Account

16,961

124,367

Cash at Bank - Payroll Account

83,575

86,518

Elders Rural Bank - Investment Account

296,197

314,025

Railways Credit Union - Investment Account (Water Perils)

858,381

785,397

Railways Credit Union - Investment Account (Sucrogen Dispute)

1,256,668

947,292

2,512,432

2,258,248

NOTE 4: RECEIVABLES

Trade Debtors

48,619

33,488

GST Paid

6,508

5,164

Prepayments

7,789

6,714

62,916

45,366

NOTE 5: PROPERTY, PLANT AND EQUIPMENT

Buildings

373,545

389,127

Less Accumulated Depreciation

(103,025)

(94,444)

270,521 294,682

Motor Vehicles

141,055 126,209


(58,142) (48,223)

82,912 77,985

Furniture & Fittings

52,734 47,843


(34,437) (29,709)

18,297 18,135

Office & Computer Equipment

120,624 105,668


(87,599) (76,566)

33,025 29,102

Property

180,000

180,000

Total Property, Plant and Equipment

584,755

599,904


13


Notes to the financial statements (continued) NOTE 6: PAYABLES

2014

2013

$

$

CURRENT Trade Creditors

82,140

76,099

GST Collected

4,836

3,488

PAYG Payable

-

-

Income Received in Advance

17,343

72,951

Sucrogen Dispute Fighting Fund

1,199,813

946,569

Other Creditors

21,488

25,447

1,325,620

1,124,555

NOTE 7: PROVISIONS

CURRENT Provision for Annual Leave

25,698

26,164

Provision for Long Service Leave

41,864

14,233

Provision for Accrued Expenses

21,750

7,292

Water Perils Provision

208,381

135,397

Total Provisions

297,693

183,085

NON CURRENT Provision for Long Service Leave

25,566

38,565

25,566

38,565

NOTE 8: ACCUMULATED FUNDS

Retained Profits at the Beginning of the Financial Year

1,424,115

1,368,010

Net Profit attributable to members of the Company

(1,875)

56,105

1,422,240

1,424,115

NOTE 9: AVAILABLE FOR SALE FINANCIAL ASSET REVALUATION RESERVE

Opening Reserve

133,199

133,199

Revaluation of Assets

(44,215)

-

88,984

133,199

The available for sale financial assets revaluation reserve arises in the revaluation of available for sale financial assets. Where a revalued financial asset is sold that portion of the reserve which relates to that financials assets is effectively realised and recognised in the profit and loss. Where a revalued financial asset is impaired, that portion of the reserve which relates to that financial asset is recognised in profit and loss. A valuation was conducted this financial year on the land and buildings at 141 Young Street Ayr resulting in a decrease in value shown above.


14


Notes to the financial statements (continued) 2014 2013

$ $

NOTE 10: WATER PERILS CROP COMPENSATION RESERVE

Opening Reserve

650,000

650,000

Revaluation of Assets

-

-

650,000

650,000

The water perils crop compensation reserve combined with the water perils provision give a total of $858,381 funds available to the water perils scheme.

NOTE 11: CASH FLOW INFORMATION

(a) RECONCILIATION OF CASH

Cash on Hand

650

650

Cash at Bank - General Account

16,961

124,367

Cash at Bank - Payroll Account

83,575

86,518

Elders Rural Bank - Investment Account

296,197

314,025

Railways Credit Union - Investment Account (Water Perils)

858,381

785,397

Railways Credit Union - Investment Account (Sucrogen Dispute) 1,256,668

947,292

2,512,432

2,258,248

(b) RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO OPERATING PROFIT

Net profit from ordinary activities after income tax expense attributable to members of the Board

(1,875)

56,105

Non-Cash Flows in Operating Profit Depreciation

60,601

50,613

Losses (Gains) on disposal of assets

(7,412)

(18,610)

Changes in Assets and liabilities (Increase) / Decrease in Receivables

(17,550)

(19,987)

Increase / (Decrease) in Payables

201,065

334,477

Increase / (Decrease) in Accrued Expenses

87,443

(46,309)

Increase / (Decrease) in Employee Benefits Provisions 14,166

784

Net Cash provided by (used in ) operating activities

336,438

357,074


15


Notes to the financial statements (continued) NOTE 12: RELATED PARTY TRANSACTIONS

Transactions between related parties are on normal commercial terms and conditions no more

favourable than those available to other persons.

NOTE 13: FINANCIAL RISK MANAGEMENT

a. Financial Risk Management Policies The entity's financial instruments consist mainly of deposits with banks, local money market

instruments, short-term investments, accounts receivable and payable. The entity does not have

any derivative instruments at 30 June 2014.

i. Treasury Risk Management Directors meet at least quarterly to analyse financial risk exposure and to evaluate treasury

management strategies in the context of the most recent economic conditions and forecasts.

ii. Financial Risk Exposures and Management The main risks the entity is exposed to through its financial instruments are liquidity risk and

credit risk. The entity is not exposed to any material commodity price risk, exchange rate risk,

or interest rate risk.

Liquidity risk The entity manages liquidity risk by monitoring forecast cash flows to ensure adequate cash

reserves are maintained.

Credit Risk The maximum exposure to credit risk is the carrying amount as disclosed in the balance sheet

and notes to financial statements.

Credit risk is managed by the entity and reviewed at least quarterly by the Board of Directors. It

arises from exposure to customers as well as through deposits with financial institutions. The entity

monitors the credit risk by actively assessing the rating quality and liquidity of counterparties:

* Only banks and financial institutions that hold a banking licence. * The credit standing of counterparties is reviewed quarterly for liquidity and credit risk.


16


Notes to the financial statements (continued) NOTE 15: FINANCIAL RISK MANAGEMENT (continued)

b. Financial Instrument Composition and Maturity Analysis

Weighted Average

Effective Interest Rate Floating Interest Rate Non Interest Bearing Total

2014 2013 2014 2013 2014 2013 2014 2013

% % $ $ $ $ $ $

Financial Assets Bank Investments 3.73 4.21 2,511,782 2,257,598 - - 2,511,782 2,257,598

Cash on Hand - - - - 650 650 650 650

Trade and other receivables

- - - - 62,916 45,366 62,916 45,366

Total financial assets

2,511,782 2,257,598 63,566 46,016 2,575,348 2,303,614

Financial Liabilities Trade and sundry payables

- - 82,140 76,099 82,140 76,099

Total financial liabilities

- - 82,140 76,099 82,140 76,099

Trade and sundry payables are expected to be paid as follows:

2014 2013

$ $

Trade and Sundry Payables

Less than 6 months

1,325,620 1,124,555

6 months to 1 year

- -

Total trade and sundry payable

1,325,620 1,124,555


17



Sensitivity Analysis Interest Rate Risk The entity has performed a sensitivity analysis relating to its exposure to interest rate at balance date. This sensitivity

analysis demonstrates the effect on current year results and equity which could result from a change in this risk.

As at 30 June 2013, the effect on profit and equity as a result of changes in the interest rate, with all other variables

remaining constant, would be as follows:

2014

2013

$

$

Change in profit

- Increase in interest rate by 2%

49,347

44,311

- Decrease in interest rate by 2%

(49,347)

(44,311)

Change in equity

- Increase in interest rate by 2%

49,347

44,311

- Decrease in interest rate by 2%

(49,347)

(44,311)


18


Directors’ declaration

The directors of the entity declare that:

1. The financial statements and notes are in accordance with the Corporations Act 2001:

a. Comply with Accounting Standards and the Corporations Regulations 2001

b. Give a true and fair view of the financial position as at 30 June 2014 and the performance for the year

ended on that date of the entity.

2. In the director’s opinion there are reasonable grounds to believe that the entity will be able to pay its debts as

and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors

Philip Marano (Director)

Dated this 14th day of October 2014


19

Independent audit report


20

Head Office

141 Young Street, Ayr

P: 4790 3600

F: 4783 4914

E: [email protected]

Project & Training Centre

Open by appointment

68 Tenth Street, Home Hill

P: 4782 1922

F: 4782 2518

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