The One Hundred and Eighty Eighth
Annual Report and Accounts of
THE VAN DIEMEN’S LAND COMPANY
ARBN 009 475 601
Established by Royal Charter 1825
2012
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Contents
Company Information
____________________________________
Facts at a Glance
5
________________________________________
Court of Directors
K G Sutton (Governor)
E Gill
M L Hampton
M C Trousselot
T H Westacott
Directors' Report
6
________________________________________
Chief Executive Officer
M Guerin (B Comm, Dip Bank, MBA)
Auditor’s Report
12
________________________________________
Company Secretary
T J Breward
Directors' Declaration
14
________________________________________
Auditor
Ernst & Young
Melbourne 3000, Victoria
Australia
Governor's Report
3
________________________________________
Statement of Comprehensive Income
15
________________________________________
Banker
Rabobank Australia Limited
Launceston 7250, Tasmania
Australia
Statement of Financial Position
16
________________________________________
Statement of Cash Flows
17
________________________________________
Solicitors
Hunt & Hunt
Hobart 7000, Tasmania
Australia
Statement of Changes in Equity
18
________________________________________
Registrars/Share Registration Office
Computershare Registry Services Pty Ltd
Level 2, 159 Hurstmere Road
North Shore, Auckland
Private Bag 92119
Auckland 1020
Ph: +64 9 488 8777
Fax: +64 9 488 8787
Notes to the Financial Statements
19
________________________________________
Statement of Interest
47
________________________________________
Auditor’s Independence Declaration
48
________________________________________
Registered Office
139 Nelson Street
PO Box 418
Smithton, Tasmania
Australia 7330
Ph: +61 3 6452 2911
Fax: +61 3 6452 2519
Email: office@vdlfarms.com.au
Financial Calendar
Annual Meeting
28 September 2012 at 2.00pm
Stanley Seaview Inn
58 Dovecote Road
Stanley 7331, Tasmania, Australia
Contact Details
139 Nelson Street
PO Box 418
Smithton, Tasmania
Australia 7330
Ph: +61 3 6452 2911
Fax: +61 3 6452 2519
Email: office@vdlfarms.com.au
Proxies Close
26 September 2012 at 2.00pm
Results Announced
Annual:
September
2
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Governor's Report
Dear Shareholder
On behalf of the Court of Directors, I present the 2012 Annual Report to Shareholders for the Company’s 188th year.
The overall result for The Van Diemen’s Land Company and Controlled Entities (‘the Company’) was a net loss after tax of
AU$1.341 million.
This loss was largely driven through increased operating costs (mainly feed) during the wet winter experienced in 2011, a
reduction in the volume and quality of silage on hand, a reduction in the rate of livestock price appreciation and reduced milk
prices. Further increases in production, coupled with better systems for making and managing supplement and tighter cost
controls implemented by a strengthened management team will return the Company to profitability in 2012/13.
The Company achieved record dairy production for the year of 5.76 million kg of milk solids, an increase of 12.9% on 2011, on a
similar dairy area. This increase was achieved by a combination of continuing improvement in farm practice and herd quality and
the ongoing migration of the Woolnorth property dairy herd to autumn calving. This compares with overall production growth for
Tasmania of 8% in 2012.
The average milk price for the year was A$5.45 per kg of milk solids versus the A$5.70 paid in 2011, a decrease of 4%. The shift
in supply pattern resulting from the transition to autumn calving and increased farm production contributed to the improved
average milk price.
The Company has continued to implement management and policy changes aimed at providing sustainable improvements in
environmental practice, animal welfare, productivity and profitability in the future.
The non dairy operations have been amalgamated and renamed dairy support. Their primary focus is increasing support for the
core dairy operations through the supply of feed supplements and agistment services. This unit continues to run beef and sheep
operations on land not yet needed for the expansion of our dairy business, albeit on a reducing basis.
Valuation of Land and Buildings
The Tasmanian farms were valued by the Directors at 31 May 2012 in accordance with the Accounting Standards based on an
independent valuation. Directors have valued the Land and Buildings at A$168.2million, up 3.2% or A$5.3 million on the
previous year.
Capital Initiatives
The Company has engaged Antipodes Consult Limited to assist in identifying further sources of funding to enable a significant
expansion of its dairy farming activities at Woolnorth.
Outlook
The Van Diemen’s Land Company has completed its initial A$13 million on-farm investment programme on the Woolnorth
property including wallaby proof fencing, land clearance, capital fertiliser and essential infrastructure - including replacement of
three dairy sheds. Around A$8 million of the investment programme was incurred in the 2011 year with initial production
benefits evident in the 2012 year. Continuing production and productivity gains will occur in the 2013 and 2014 years, and
thereafter.
In March 2012 the Company also completed the first of its new dairy conversions on Woolnorth, named Cape Barren. The new
dairy operation milks approximately 1,200 cows on 350 hectares previously used for beef grazing. Three feed pads, each with a
carrying capacity of 600 cows, were built on Woolnorth in May 2012 to improve supplement utilisation and pasture quality.
After at least a decade of underinvestment, this capital program was long overdue. The most recent capital expenditure projects
have been the subject of detailed post-implementation review as the Company seeks to utilise lessons learned from the latest
capital works as it plans further growth. Attention is now being focussed on operational and productivity improvements.
3
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Governor's Report (continued)
Outlook (continued)
The new season from 1 June 2012 has started strongly. Production of 6.7 million kg of milk solids is budgeted for the 2013 year,
an expected lift of 16.2%. A refreshed and strengthened leadership group, a big focus on operational improvements and health
and safety, building of stronger links with local communities and completion of significant planning for the development of the
Woolnorth property asset will all show results in the 2012/13 year and beyond.
The Company has a long term plan to significantly expand the Company’s dairy farming activities on Woolnorth. The Company
now has sufficient confidence in its underlying farming systems and personnel to undertake this expansion. A detailed
development plan has been scoped to achieve that objective.
Externally the combination of forecast global population growth, continuing urbanisation and the rapid growth of the middle
class in developing regions and increased protein consumption continue to drive increased demand for dairy products. At the
same time climate change, urban spread and increased competition for agricultural land is reducing the availability of productive
land for dairying. The resulting long run supply-demand balance outlook supports a firming of pricing for dairy products and
demand for productive agricultural land.
Northwest Tasmania remains ideally suited to dairy farming. Its temperate climate combines abundant and consistent rainfall
with moderate temperatures both in summer and winter.
Summary
The Company continues to move towards realising the full potential of its current farms and expects to continue to improve
productivity in 2013.
The long term outlook for dairy farming remains positive with milk prices expected to increase for future years. The growth in
overall milk production and the improved timing of milk flow will assist in maintaining the Company’s average milk price.
Management and the Court of Directors continue to keep under review all aspects of the operations and are confident that the
initiatives put in place during the past year will result in improved production and profitability in the future.
I welcome new staff and sharefarmers who have joined The Van Diemen’s Land Company during the year, all of whom have, and
will, with their existing colleagues, continue to assist the Company improve its overall performance.
K G Sutton
Governor
Dated: 29 August 2012.
4
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Facts at a Glance
for the year ended 31 May 2012
Net Profit/(Loss) after Taxation
Audited Company net loss after tax was A$1,341,308 compared with a profit of A$5,768,495 in 2011.
Earnings Before Interest and Taxation
Operating earnings before interest and tax was A$1,684,358 compared with A$11,734,790 for the year ended 31 May 2011.
Revenue
Revenue decreased to A$33,503,704 from A$34,014,654 for the year ended 31 May 2011.
Milk Payouts
Farm gate milk payouts decreased to A$5.45 per kilogram milk solids compared with A$5.70 per kilogram milk solids in 2011.
Net Tangible Assets
On a per share basis the net tangible assets of the Company were A$1.37 at 31 May 2012 compared to A$1.37 a year earlier.
Production
Production was 5.76 million kilograms of milk solids, compared with 5.10 million kilograms of milk solids last year.
2012
kgs/ms
1,774,297
3,990,614
Tasman Farmdale Pty Limited
The Van Diemen's Land Company - Dairies Pty Limited
2011
%change
kgs/ms
1,641,946
8.1
3,462,086
15.3
5,764,911
5,104,032
2012
#
2011
#
10
13
1
8
14
1
24
23
Dairy Farm Operations
Number of farms:
Managed
Lower order sharefarmed
50:50 sharefarmed
Facts at a Glance
Revenue
Net profit/(loss) after tax
Shareholders' funds
Net debt (excluding tax liability, payables and provisions)
Earnings per share
5
2012
A$
33,503,704
(1,341,308)
120,609,566
55,665,670
2011
A$
34,014,654
5,768,495
121,182,988
46,609,692
(0.02)
0.07
12.9
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Directors' Report
Your Directors present their report on the Company and its controlled entities for the financial year ended 31 May 2012. The
names of the Directors in office at any time during, or since the end of the year are:
K G Sutton
E Gill
M L Hampton
M C Trousselot
T H Westacott
Governor
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
The disclosures in relation to Directors’ remuneration and shareholdings are detailed in Note 5 and on page 47.
Directors’ Profiles:
Keith Sutton (BCA) – Governor of The Van Diemen's Land Company and Chairperson of Tasman Farms Limited.
Keith Sutton, of New Zealand is a Director of Sutton McCarthy Limited, Chairperson of Taranaki Investment Management
Limited and a Director of The Maori Trustees Advisory Board, Wellington International Airport Limited, Gough Group Limited
and Sealord Group Limited.
Keith is also a Member of the Institute of Directors and has both farming and forestry interests in New Zealand.
Elaine Gill (ONZM LLB JP) – Director of The Van Diemen's Land Company and Tasman Farms Limited and Member of
the Audit and Risk Committee.
Elaine Gill, of New Plymouth, New Zealand, is Chairperson of TSB Bank Ltd, a Director of Taranaki Investment Management
Limited and a past Director of RadioWorks.
Elaine was a New Plymouth District Councillor for nine years retiring in 2007, serving as a Chair of the Monitoring Committee
and the Policy Committee and as a member of the Council's Investment Subcommittee.
Elaine has extensive regional and national experience in the tourism industry.
Miles Hampton BEc(Hons), FCPA, FCIS, FAICD – Director of The Van Diemen's Land Company and Tasman Farms
Limited and Chairperson of the Audit and Risk Committee.
Miles Hampton, of Tasmania was, until 2006, the Managing Director of Roberts Limited, a position he held for 20 years.
A qualified accountant and company secretary, Miles is currently Chairman of Tasmanian Water Corporations and Mather
Foundation.
Miles has also served as a director of a number of companies. He is currently a Director of Forestry Tasmania, Australian
Pharmaceutical Industries Limited and My State Limited.
Michael Trousselot – Director of The Van Diemen's Land Company and Tasman Farms Limited and Member of the Audit
and Risk Committee.
Michael Trousselot, of New Plymouth, New Zealand is Chief Executive of Taranaki Investment Management Limited, a NZ$250
million perpetual investment fund.
Michael has had leadership roles in a range of New Zealand companies and other organisations.
He is a current member of the Institute of Directors, and corporate member of the New Zealand Venture Capital Association.
6
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Directors' Report (continued)
Directors’ Profiles (continued):
Trevor Westacott – Director of The Van Diemen's Land Company and Tasman Farms Limited and Member of the Audit
and Risk Committee.
Trevor Westacott, of Victoria, is Managing Director of The Vet Group (TVG), one of the largest dairy cattle veterinary clinics in
Australia. Trevor is also Director of Trameana Pty Ltd.
Trevor has extensive industry experience within the agribusiness sector, including developing large scale dairying operations,
lecturing in agribusiness management and participation in many dairying initiatives.
Principal Activities
The principal continuing activities of the Company are dairy, beef and sheep farming. No significant changes in the nature of
these activities occurred during the year.
Operating Results
The operating result of the Company for the financial year after providing for income tax amounted to a loss of A$1,341,308
compared with a profit after income tax of A$5,768,495 for the 2011 year.
This result reflects increased feed costs, a reduction in the level of livestock price appreciation, a reduction in the volume and
quality of silage on hand and a reduction in milk price.
Record milk production of 5.76 million kilograms of milk solids was 12.9% ahead of the preceding year making VDL the largest
supplier of milk within Australia.
During the year finance costs increased marginally to A$3.61 million (2011: A$3.51 million). The increase in finance costs
includes the additional borrowings from Rabobank for capital expansion including the new dairy, Cape Barren. The valuation of
fixed assets by the Directors at 31 May 2012 along with additional capital expenditure has led to a corresponding increase in the
carrying value of property, plant and equipment.
Review of Operations
A review of the operations of the economic entity during the financial year and the results of those operations are as follows:
Dairy Operations
The Company milked 17,552 cows on 24 farms having a total effective area of 6,143 hectares for total production in the year
ended 31 May 2012 of 5.76 million kilograms of milk solids (kgMS) (2011: milked 16,175 cows on 23 farms having a total
effective area of 5,793 hectares for production of 5.10 million kgMS). The new farm only commenced milking eight weeks prior
to year end.
The average farm gate milk price for the year ended 31 May 2012 was A$5.45 per kilogram of milk solids, a decrease of 4% from
A$5.70 per kilogram of milk solids for the year ended 31 May 2011.
The region has enjoyed a very mild season which has seen consistent rain throughout the year; this has ensured cows have
maintained good condition and feed reserves have been accumulated. It should be noted that this favourable climate saw
Tasmanian production some 8% ahead of the previous year. The differential between this growth and the Company’s growth is a
reflection of the ongoing focus of management, the continued shift to autumn supplying dairy farms and the early realisation of
the benefits expected to flow from the significant capital investment recently made to the Company’s properties.
7
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Directors' Report (continued)
Review of Operations (continued)
Dairy Outlook
As at the date of this report, milk production is approximately 28% above last year due to the good cow condition at calving, new
production from Cape Barren, and a larger proportion of our herd autumn calving.
The Company’s milk processor announced its opening price for the 2012/13 season at approximately A$4.46 per kilogram of
milk solids. A final price of A$5.00 per kilogram of milk solids is considered realistic. The Company is aiming to offset an
earnings drop through reduced milk prices with a lift in milk volume and reduction in operating costs. Forecasts are showing a
stabilisation in milk prices with reduced production in America due to their current drought.
For 2012/13, twelve of the Company’s 23 dairy farms will be operated under lower order sharefarming agreements, one under a
50:50 sharefarming agreement and ten properties by managers employed by the Company.
Dairy Support
The total number of beef cattle carried at 31 May 2012 was 3,826 head compared with 4,971 in the previous year. This decline in
numbers continues to reflect the changed focus of the dairy support operations. There is now a focus on high margin cattle
finishing both on the Company’s own account and through an agistment arrangement with the local meat processor. Large
volumes of feed are conserved and utilised by the dairy operations. The dairy support operations also provide grazing for dairy
cows both when wintered off the milking platforms and when it is appropriate to retain the dairy animal and place it back into an
autumn calving pattern.
Capital Development
A number of significant capital developments were progressed or completed during the year. This included the commissioning of
the new farm, Cape Barren, converting 350 hectares of beef grazing land into dairy farming. Three new feed pads were
constructed on Woolnorth and a reconfiguration of the Denium farm operations took place.
Capital Initiatives
The Company has engaged Antipodes Consult Limited to assist in identifying further sources of funding to enable a significant
expansion of its dairy farming activities at Woolnorth.
Role of the Court
The Court of Directors is elected by the shareholders to supervise the management of The Van Diemen’s Land Company and its
controlled entities (‘the Company’). The Court establishes the Company’s objectives, annual budgets and the overall policy
framework within which the business is conducted. The Court monitors Management’s performance relative to these goals and
plans, and has delegated the day to day management of the Company to the Chief Executive Officer.
The Court has the obligation to protect and enhance the value of the assets of the Company. It achieves this through the approval
of appropriate corporate strategies, with particular regard to portfolio composition and return expectations, including the
approval of transactions relating to acquisitions and divestments and capital expenditures above delegated authority limits,
financial and dividend policy and the review of performance against strategic objectives.
Committees established by the Court review and analyse policies and strategies, usually developed by Management, which are
within their terms of reference. They examine proposals and, where appropriate, make recommendations to the full Court.
Committees do not take action or make decisions on behalf of the Court unless specifically mandated by prior Court authority to
do so.
The Court supports the concept of the separation of the role of Governor from that of Chief Executive Officer. The Governor’s
role is to provide leadership to the Court and to interface with the Chief Executive Officer.
The composition and terms of reference of the Court, the Governor, the Committees and the Chief Executive Officer are reviewed
annually by the Court.
8
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Directors' Report (continued)
Role of the Court (continued)
The Governor annually assesses the effectiveness of the Court and its Committees. The Governor of the Court, with the
assistance of the Chief Executive Officer, establishes the agenda for each Court of Directors Meeting.
The Company has one formally constituted Audit and Risk Committee.
Court Operations and Membership
The Court currently comprises five Directors: a Non Executive Governor and four Non Executive Directors. The Royal Charter
sets out policies and procedures on the operation of the Court, including the appointment and removal of Directors.
Audit and Risk Committee
At the date of the Annual Report, The Van Diemen’s Land Company had an Audit and Risk Committee consisting of the
following Directors:
M L Hampton (Chairperson)
E Gill
M Trousselot
T Westacott
The Committee’s responsibilities are to:
•
•
•
•
oversee the existence and maintenance of internal controls and accounting systems;
oversee the financial reporting process;
nominate the external auditors; and
review the existing external audit arrangements.
Indemnity
No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is
or has been an officer or auditor of the economic entity.
The Company has paid premiums to insure each director of the Company, its parent entity (Tasman Farms Limited), and its
subsidiary companies against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of
their conduct while acting in the capacity of director of the Company, other than conduct involving a wilful breach of duty in
relation to the Company.
Dividends
The Directors have recommended not to pay a dividend in respect of the 2011/12 financial year (2010/11: nil).
9
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Directors' Report (continued)
Directors’ Benefits
Since 31 May 2012 no Director of the Company has received or become entitled to receive a benefit (other than a remuneration
benefit included in Note 5 to the financial statements) because of a contract made by the Company or a related body corporate
with the Director or with a firm of which he is a member, or with a company in which he has a substantial financial interest, other
than that disclosed in Note 20.
After Balance Date Events
During April 2012 the Company entered into an agreement to sell the Mawbush property owned by Tasman Farmdale Pty
Limited for A$1,954,938.
Contemporaneously, the Company entered into an agreement to purchase Greenfields, a dairy farm in Togari (including
livestock) for A$3,993,000. It is planned to manage Greenfields in conjunction with our neighbouring Blackwood property.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly
affect the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in future
financial years.
Options
No options over issued shares or interests in the Company or a controlled entity were granted during or since the end of the
financial year and there were no options outstanding at the date of this report.
Environmental Issues
The economic entity’s ongoing operations are not regulated by any significant environmental regulation under a law of the
Commonwealth or State or of a Territory other than may be required for industry accepted dairy and pastoral operations.
Proposed land development at Woolnorth will be subject to relevant Commonwealth, State and Local regulations.
Court Proceedings
No person has applied for leave to the Court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Company was not party to any such proceedings during the year.
Auditor
Ernst & Young continue as the auditor of the Company.
10
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Directors' Report (continued)
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page
48.
Annual General Meeting
The Annual General Meeting of shareholders of The Van Diemen’s Land Company will be held at the Stanley Seaview Inn, 58
Dovecote Road, Stanley, Tasmania, Australia on Friday 28 September 2012 commencing at 2.00 pm. Prior to the meeting there
will be a tour of the Company’s operations departing from Stanley Seaview Inn at 10am, for any shareholder who wishes to
attend.
Signed by order of the Court on 29 August 2012.
K G Sutton
Governor
M L Hampton
Director
11
Independent auditor's report to the members of The Van Diemen’s
Land Company
Report on the financial report
We have audited the accompanying financial report of The Van Diemen’s Land Company, which
comprises the statements of financial position as at 31 May 2012, the statements of
comprehensive income, the statements of changes in equity and the statements of cash flows for
the year then ended, notes comprising a summary of significant accounting policies and other
explanatory information, and the directors' declaration of the company and the consolidated entity
comprising the company and the entities it controlled at the year's end or from time to time during
the financial year.
Directors' responsibility for the financial report
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal controls as the directors determine are necessary to enable the
preparation of the financial report that is free from material misstatement, whether due to fraud or
error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101
Presentation of Financial Statements, that the financial statements comply with International
Financial Reporting Standards.
Auditor's responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the
audit to obtain reasonable assurance about whether the financial report is free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial report, whether due
to fraud or error. In making those risk assessments, the auditor considers internal controls relevant
to the entity's preparation and fair presentation of the financial report in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independence
In conducting our audit we have complied with the independence requirements of the Corporations
Act 2001. We have given to the directors of the company a written Auditor’s Independence
Declaration.
12
Liability limited by a scheme approved
under Professional Standards Legislation
Opinion
In our opinion:
a.
b.
the financial report of The Van Diemen’s Land Company is in accordance with the
Corporations Act 2001, including:
i
giving a true and fair view of the company's and consolidated entity's financial
positions as at 31 May 2012 and of their performance for the year ended on that
date; and
ii
complying with Australian Accounting Standards and the Corporations Regulations
2001; and
the financial report also complies with International Financial Reporting Standards as
disclosed in Note 1.
Ernst & Young
David McGregor
Partner
Melbourne
29 August 2012
13
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Directors' Declaration
In accordance with a resolution of the Directors of The Van Diemen’s Land Company, we state:
1.
In the opinion of the Directors:
(a) The financial statements and notes of the Company and consolidated entity are in accordance with the Corporations
Act 2001 and:
(i) give a true and fair view of the Company’s and consolidated entity’s financial position as at 31 May 2012 and
performance for the year ended on that date; and
(ii) comply with Accounting Standards and the Corporations Regulations 2001; and
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
2.
This declaration has been made after receiving the declaration required to be made to the Directors in accordance with
Section 295A of the Corporations Act 2001 for the financial period ended 31 May 2012.
Signed by order of the Court on 29 August 2012.
K G Sutton
Governor
M L Hampton
Director
14
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Statement of Comprehensive Income
for the year ended 31 May 2012
Notes
Continuing Operations
Sales revenue
2
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
33,340,885
33,473,876
7,536,718
6,190,468
3,191,703
6,666,558
(1,098,340)
1,142,845
Cost of sales
(1,455,780)
(1,729,973)
(174,911)
(566,566)
Gross profit
35,076,808
38,410,461
6,263,467
6,766,747
2
162,819
540,778
7,526,607
7,931,555
3
3
3
(25,514,673)
(1,657,845)
(1,140,039)
(5,242,712)
(3,613,967)
(22,358,202)
(1,845,376)
(809,471)
(2,203,400)
(3,514,519)
(7,082,675)
(1,321,597)
(1,011,410)
(3,058,487)
(3,613,967)
(3,655,935)
(1,775,707)
(687,958)
(2,203,400)
(3,514,519)
(1,929,609)
8,220,271
(2,298,062)
2,860,783
588,301
(2,451,776)
653,529
(898,401)
(1,341,308)
5,768,495
(1,644,533)
1,962,382
1,096,980
(329,094)
2,656,650
(796,995)
3,192,042
(957,613)
2,172,313
(651,694)
767,886
1,859,655
2,234,429
1,520,619
(573,422)
7,628,150
589,896
3,483,001
Net increase/(decrease) in value of livestock
Other revenue from continuing operations
Farm working expenses
Administration expenses
Depreciation expense
Employee benefit expenses
Finance costs
Profit/(loss) before income tax
Income tax (expense)/benefit
4
Net profit/(loss) from continuing operations
after income tax expense attributed to
owners of the parent company
Other Comprehensive Income
Increase/(decrease) in asset revaluation reserve
Tax effect of other comprehensive income
17
17
Total Comprehensive Income/(Loss) attributed to
owners of the parent company
The accompanying notes form part of these financial statements.
15
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Statement of Financial Position
as at 31 May 2012
Notes
CURRENT ASSETS
Cash
Trade and other receivables
Livestock and inventories
Land held for sale
Other
6
7
8
12
9
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
443,783
4,790,510
10,417,210
1,954,938
153,426
44,301
4,782,047
11,941,753
49,897
6,768
6,905,864
4,629,356
33,203
44,301
6,049,546
6,400,453
33,226
17,759,867
16,817,998
11,575,191
12,527,526
2,236,462
172,371,281
26,565,441
1,438,126
2,379,167
166,219,469
23,100,082
1,438,126
41,486,504
139,408,266
1,438,126
37,499,275
129,306,815
1,438,126
Total non current assets
202,611,310
193,136,844
182,332,896
168,244,216
TOTAL ASSETS
220,371,177
209,954,842
193,908,087
180,771,742
7,818,875
54,854,321
193,699
5,657,675
526,274
161,915
3,500,543
66,385,663
193,699
2,541,260
14,156,055
161,915
62,866,895
6,345,864
70,079,905
16,859,230
811,349
36,083,367
46,083,418
36,342,572
811,349
24,887,698
45,919,593
20,453,680
Total non current liabilities
36,894,716
82,425,990
25,699,047
66,373,273
TOTAL LIABILITIES
99,761,611
88,771,854
95,778,952
83,232,503
120,609,566
121,182,988
98,129,135
97,539,239
41,768,941
77,569,076
1,271,549
41,768,941
76,801,190
2,612,857
41,768,941
59,082,133
(2,721,939)
41,768,941
56,847,704
(1,077,406)
120,609,566
121,182,988
98,129,135
97,539,239
Total current assets
NON CURRENT ASSETS
Other financial assets
Property, plant and equipment
Livestock and inventories
Memorabilia
CURRENT LIABILITIES
Trade and other payables
Interest bearing liabilities
Provisions
10
12
8
9
13
14
15
Total current liabilities
NON CURRENT LIABILITIES
Interest bearing liabilities
Deferred tax liability
14
4
NET ASSETS
EQUITY
Contributed equity
Reserves
Retained profits/(losses)
16
17
18
TOTAL EQUITY
The accompanying notes form part of these financial statements.
16
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Statement of Cash Flows
for the year ended 31 May 2012
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Dividends received
Finance costs
32,161,726
(28,815,495)
15,412
145,788
(3,601,788)
29,728,446
(26,707,925)
22,929
158,040
(3,514,519)
13,760,503
(9,831,120)
15,412
145,788
(3,601,788)
14,257,251
(8,739,261)
22,930
158,040
(3,514,520)
(94,357)
(313,029)
488,795
2,184,440
Proceeds from sales of property, plant
and equipment
Purchase of property, plant and equipment
Dairy stock sales
Dairy stock purchases
Repayment from/(advance to) non related parties
24,237
(8,184,607)
1,167,997
(1,569,766)
-
16,591
(7,891,268)
1,008,461
(1,163,407)
384,615
24,237
(7,955,613)
-
16,591
(7,406,665)
-
Net cashflows from/(to) investing
(8,562,139)
(7,645,008)
(7,931,376)
(7,390,074)
Advance from/(to) subsidiaries
Advance from/(to) Tasman Farms Limited
Term loan from/(to) Tasman Farms Limited
Equipment financing
Repayment of equipment financing
Drawdown/(repayment) of Rabobank facility
Shares issued to Tasman Farms Limited
21,693
877,438
(414,886)
8,571,733
-
323,972
(4,831,085)
522,665
(336,685)
2,589,638
9,581,016
(1,814,754)
21,693
877,438
(414,886)
8,735,557
-
(2,533,583)
323,972
(4,831,085)
522,660
(336,685)
2,425,813
9,581,016
Net cashflows from/(to) financing
9,055,978
7,849,521
7,405,048
5,152,108
Net increase/(decrease) in cash held
Cash at the beginning of the year
399,482
44,301
(108,516)
152,817
(37,533)
44,301
(53,526)
97,827
443,783
44,301
6,768
44,301
Net cashflows from/(to) operating
6
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Cash at the end of the financial year
6
The accompanying notes form part of these financial statements.
17
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Statement of Changes in Equity
for the year ended 31 May 2012
Issued
Capital
Asset
Revaluation
Reserve
A$
A$
Other
Reserves
Retained
Earnings
Total
A$
A$
A$
CONSOLIDATED
Balance as at 1 June 2010
Profit/(loss) for the year
Income tax benefit/(expense)
Other comprehensive income/(loss)
Income tax benefit/(expense)
Shares issued
Balance as at 31 May 2011
Profit/(loss) for the year
Income tax benefit/(expense)
Other comprehensive income/(loss)
Income tax benefit/(expense)
Balance as at 31 May 2012
32,187,925
73,628,203
1,313,332
(3,155,638)
103,973,822
9,581,016
2,656,650
(796,995)
-
-
8,220,271
(2,451,776)
-
8,220,271
(2,451,776)
2,656,650
(796,995)
9,581,016
41,768,941
75,487,858
1,313,332
2,612,857
121,182,988
-
1,096,980
(329,094)
-
(1,929,609)
588,301
-
(1,929,609)
588,301
1,096,980
(329,094)
41,768,941
76,255,744
1,313,332
1,271,549
120,609,566
32,187,925
54,013,753
1,313,332
(3,039,788)
84,475,222
9,581,016
2,172,313
(651,694)
-
-
2,860,783
(898,401)
-
2,860,783
(898,401)
2,172,313
(651,694)
9,581,016
41,768,941
55,534,372
1,313,332
(1,077,406)
97,539,239
-
3,192,042
(957,613)
-
(2,298,062)
653,529
-
(2,298,062)
653,529
3,192,042
(957,613)
41,768,941
57,768,801
1,313,332
(2,721,939)
98,129,135
PARENT
Balance as at 1 June 2010
Profit/(loss) for the year
Income tax benefit/(expense)
Other comprehensive income/(loss)
Income tax benefit/(expense)
Shares issued
Balance as at 31 May 2011
Profit/(loss) for the year
Income tax benefit/(expense)
Other comprehensive income/(loss)
Income tax benefit/(expense)
Balance as at 31 May 2012
The accompanying notes form part of these financial statements.
18
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements
for the year ended 31 May 2012
1. Statement of Significant Accounting Policies
The financial statements are general purpose financial statements that have been prepared in accordance with Australian
Accounting Standards and the Corporations Act 2001.
The financial statements cover The Van Diemen’s Land Company as an individual parent company and The Van Diemen’s Land
Company and its controlled entities as a group: The Van Diemen’s Land Company – Dairies Pty Limited, Tasman Farmdale Pty
Limited and Tasman Farms Pty Limited. The Group has adopted Class Order CO10/654 which permits it to include the parent
entity financial statements in the financial report for the year ended 31 May 2012. This ASIC class order was issued on 26 July
2010.
The Van Diemen’s Land Company is a company limited by shares, incorporated by Royal Charter in the United Kingdom and
domiciled in Australia.
Tasman Farms Limited is the ultimate parent company of The Van Diemen’s Land Company holding 98.42% of the ordinary
shares. It is incorporated in New Zealand.
The financial statements have been prepared on an accruals basis using historical costs and do not take into account changing
money values except for land and buildings, livestock and some inventories and memorabilia, which have been recorded at fair
value. Cost is based on the fair value of the consideration given in exchange for assets.
Both the functional and presentation currency of these financial statements is Australian dollars (A$).
The financial statements comply with Australian Accounting Standards as issued by the Australian Accounting Standards Board
and International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board.
The following Accounting Standards issued or amended which are applicable to the Company but not yet effective, have not been
adopted for the annual reporting period ended 31 May 2012:
AASB
Amendment
Affected Standard(s)
Nature of change to
accounting policy
AASB 9
Financial Instruments
The impact of this change is not
anticipated to have a material
effect on the financial statements.
01-Jan-13
01-Jun-13
AASB 10
Consolidated Financial Statements
The impact of this change is not
anticipated to have a material
effect on the financial statements.
01-Jan-13
01-Jun-13
AASB 13
Fair Value Measurement
The impact of this change has not
yet been determined.
01-Jan-13
01-Jun-13
AASB 119
Employee Benefits
The impact of this change is not
anticipated to have a material
effect on the financial statements.
01-Jan-13
01-Jun-13
19
Application
date of
standard
Application
date for
the Company
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
1. Statement of Significant Accounting Policies (continued)
AASB
Amendment
Affected Standard(s)
Nature of change to
accounting policy
Application
date of
standard
Application
date for
the Company
AASB 2009-11
AASB 9: Financial Instruments
The impact of this change is not
anticipated to have a material
effect on the financial statements.
01-Jan-13
01-Jun-13
AASB 2011-09
Presentation of Other Comprehensive Income
The impact of this change is not
anticipated to have a material
effect on the financial statements.
01-Jul-12
01-Jun-13
AASB 1054
Australian Additional Disclosures
The impact of this change is not
anticipated to have a material
effect on the financial statements.
01-Jul-11
01-Jun-12
AASB 1053
Application of Tiers of Australian Accounting
Standards
The impact of this change is not
anticipated to have a material
effect on the financial statements.
01-Jul-13
01-Jun-14
During the current year the Company has adopted all of the new and revised Australian Accounting Standards and Interpretations
applicable to its operations which became mandatory. The adoption of these Standards had an impact on the recognition,
measurement and disclosure of certain transactions.
The following is a summary of the material accounting policies adopted by the Company in the preparation of the financial
statements.
(a) Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of The Van Diemen's Land Company and its
controlled entities.
A controlled entity is any entity controlled by The Van Diemen's Land Company. Control exists where The Van Diemen's Land
Company has the capacity to dominate the decision making in relation to the financial and operating policies of another entity so
that the other entity operates with The Van Diemen's Land Company to achieve the objectives of The Van Diemen's Land
Company.
Subsidiary acquisitions are accounted for using the purchase method of accounting. The financial statements of subsidiaries are
prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to
bring into line any dissimilar accounting policies that may exist.
All inter-company balances and transactions between entities in the Company, including any unrealised profits or losses, have
been eliminated on consolidation.
(b) Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or
paid to the taxation authority. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively
enacted by the balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
20
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
1. Statement of Significant Accounting Policies (continued)
(b) Income Tax (continued)
Deferred income tax liabilities are recognised for all taxable temporary differences:
•
except where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is
not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
and
•
in respect of taxable temporary differences associated with investments in subsidiaries, except where the timing of the
reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in
the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused
tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary difference,
and the carry-forward of unused tax assets and unused tax losses can be utilised:
•
except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss; and
•
in respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are only
recognised to the extent that it is probable that the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and
liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the income statement.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and taxation authority.
Tax Consolidation
The Van Diemen’s Land Company and its wholly owned Australian subsidiaries formed an income tax consolidated group under
the Income Tax Assessment Act 1997; effective from 1 July 2002. Each entity recognises its own current and deferred tax assets
and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation. Current tax liabilities (assets)
and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately transferred to the head
entity. The Company entered a tax-funding arrangement on 25 June 2010, whereby each company contributes to the income tax
payable by the Company in proportion to their contribution to the total taxable income. Differences between the amounts of net
tax assets and liabilities derecognised and the net amounts recognised pursuant to the funding arrangement are recognised as
either a contribution by, or distribution to, the head entity.
(c) Livestock and Inventories
The policies for livestock and inventories are summarised as follows:
(i) Dairy, beef and sheep livestock – In accordance with the AASB 141: Agriculture, the dairy, beef and sheep livestock have
been valued at market value as at 31 May 2012 less estimated costs of sale. Any movement in valuation due to biological
changes or market price is recorded in profit or loss. Dairy, beef and sheep livestock will next be valued at 31 May 2013.
(ii) Fodder – is stated at market value less estimated costs of sale. An independent farm consultant provided market valuations on
the range of fodder conserved by the Company. The volume of all fodder is measured at least every six months and is revalued at
least annually.
(iii) Consumable stores - are stated at the lower of cost and net realisable value.
21
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
1. Statement of Significant Accounting Policies (continued)
(c) Livestock and Inventories (continued)
(iv) Wool - Where wool is sold shortly after balance date and the selling price is known, the wool stocks are recorded at market
value less estimated costs of sale, otherwise it is recorded at cost.
(d) Property, Plant and Equipment
Properties included in the financial statements were valued by the Directors at 31 May 2012 in accordance with the Accounting
Standards based on an independent valuation prepared by Mr David D Johnston (A.A.P.I.). Surpluses and deficits from
revaluations are included in the revaluation reserve, where deficits are reversing previous upwards valuations. The potential
effect of capital gains tax on disposal has not been taken into account in the determination of the valuations.
To reduce annual compliance costs revaluations on land and buildings are normally conducted up to three years apart unless the
Directors believe that more frequent valuations are required. The properties were last valued at 31 May 2011 but the Directors
determined that it would be prudent to revalue the assets again this year. Where Directors consider that the value of a revalued
item differs materially from its carrying amount, all items within the class are revalued based on an independent valuation.
Items of plant and equipment not included in the valuation by Mr David D Johnston are recorded at cost less depreciation and
impairment losses and have been depreciated on a straight line or diminishing balance basis at rates varying between 10% and
33.33% depending on the estimated useful life of the particular item. Depreciation rates have not changed from the previous
year.
Revaluation of Land and Buildings
Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve included in
equity. Decreases that offset previous increases in the same asset are charged against asset revaluation reserve directly in equity;
all other decreases are charged to the income statement.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net
amount is restated to the revalued amount of the asset.
Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with the recoverable amount
being estimated when events or changes in circumstances indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined for the cash-generating
unit to which the asset belongs, unless the asset’s value in use can be estimated to be close to its fair value. An impairment exists
when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable amount. The asset or cashgenerating unit is then written down to its recoverable amount.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are
expected from its use or enjoyment.
(e) Investments
Long term investments are stated at cost. The carrying value of investments is reviewed annually by the Directors to ensure it is
not in excess of the recoverable amount of the investments. Where the cost exceeds the recoverable amount, the investment is
written down to this recoverable amount.
22
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
1. Statement of Significant Accounting Policies (continued)
(f) Foreign Currency Transactions and Balances
The Company’s functional and presentation currency is Australian dollars (A$). Foreign currency transactions during the period
are converted to Australian currency at the rates of exchange applicable at the dates of the transactions. Amounts receivable and
payable in foreign currencies at balance date are converted at the rates of exchange on that date. The gains and losses from
conversion of short-term assets and liabilities, whether realised or unrealised, are included in operating profit before income tax
as they arise. The issued capital in Sterling has been translated into Australian Dollars at the 30 June 1993 rate of A$2.06 to £1
Sterling. In prior years, the movement in the exchange rate was transferred to the foreign currency translation reserve. The
current policy is for the issued capital to remain at this historical figure.
(g) Employee Benefits
Provision is made for the Company's liability for employee entitlements arising from services rendered by employees to balance
date. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries,
annual leave and sick leave which will be settled after one year, have been measured at their nominal amount based on
remuneration rates which are expected to be paid when the liability is settled. Other employee entitlements payable later than one
year have been measured at cost unless the amount is material and then these are measured at the present value of the estimated
future cash outflows to be made for those entitlements. Contributions are made by the Company to employee superannuation
funds in accordance with Superannuation Guarantee Legislation and are charged as expenses when incurred.
(h) Cash
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short term deposits with an original
maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of change in value. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash
equivalents as defined above.
(i) Memorabilia
Memorabilia included in the financial statements were valued by the Directors at 31 May 2010 in accordance with the
Accounting Standards based on an independent valuation by Mr R L Broughton ALIA ASA, a registered valuer of archivist
material. It is not depreciated, as it is a naturally appreciating asset. Revaluation of the memorabilia will be conducted on a
cyclical basis with sufficient frequency to ensure the accounting value does not materially differ from the carrying amount.
(j) Development Expenditure
Development expenditure on items resulting in a future benefit to the Company is capitalised.
(k) Comparative Figures
Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the
current financial year.
(l) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition
of the asset or as part of an item of expense. Receivables and payables in the statement of financial position are shown inclusive
of GST.
23
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
1. Statement of Significant Accounting Policies (continued)
(m) Trade and Other Receivables
Trade receivables are recognised and carried at original invoice amount less a provision for any uncollectible debts. An estimate
for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.
Receivables from related parties are recognised and carried at the nominal amount due.
(n) Revenue Recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the entity and the revenue can be easily
measured. The following specific recognition criteria must also be met before revenue is recognised:
(i) Sale of Goods – Control of the goods has passed to the buyer.
(ii) Interest – Control of the right to receive the interest payment.
(iii) Dividends – Control of the right to receive the dividend payment.
(o) Interest Bearing Liabilities and Borrowing
All loans and borrowings are initially recognised at fair value of the consideration received less directly attributable transaction
costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective
interest method. Amortised cost is calculated by taking into account any issue costs, and any discount or premium on settlement.
Gains or losses are recognised in the income statement when liabilities are derecognised as well as through the amortisation
process.
(p) Impairment of Financial Assets
The Company assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.
Financial assets carried at amortised cost
If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been incurred, the
amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future
cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective
interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced either
directly or through use of an allowance account. The amount of the loss is recognised in the income statement.
The Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually
significant, and individually or collectively for financial assets that are not individually significant. If it is determined that no
objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is
included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively
assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to
be recognised are not included in a collective assessment of impairment.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognised, the previously recognised impairment loss is reversed. Any subsequent reversal
of an impairment loss is recognised in the income statement, to the extent that the carrying value of the asset does not exceed its
amortised cost at the reversal date.
Financial assets carried at cost
If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is not carried at
fair value (because its fair value cannot be reliably measured), or on a derivative asset that is linked to, and must be settled by
delivery of such an unquoted equity instrument, the amount of the loss is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the current market rate of return for a similar financial
asset.
24
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
1. Statement of Significant Accounting Policies (continued)
(p) Impairment of Financial Assets (continued)
Available-for-sale investments
If there is objective evidence that an available-for-sale investment is impaired, an amount comprising the difference between its
cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss previously recognised
in profit or loss, is transferred from equity to the income statement. Reversals of impairment losses for equity instruments
classified as available-for-sale are not recognised in profit. Reversals of impairment losses for debt instruments are reversed
through profit or loss if the increase in an instrument’s fair value can be objectively related to an event occurring after the
impairment loss was recognised in profit or loss.
(q) Trade and Other Payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided to the
Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future
payments in respect of the purchase of these goods and services.
(r) Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
(s) Derivative Financial Instruments
On occasions the Company may use derivative financial instruments (including interest rate swaps) to hedge its risk associated
with interest rate fluctuations. Through the use of specific separate arrangements within its banking facility, the Group has the
option of fixing a component of its obligations with Rabobank Australia Limited over various fixed term periods. Given that the
characteristics of this arrangement mirror that of an interest rate swap, the Group has chosen to account for this as an embedded
derivative separate from the underlying banking arrangement.
Such derivative financial instruments are initially recognised at fair value on the date on which the derivative contract is entered
into and subsequently measured to fair value. Derivatives are carried as assets when their fair value is positive and as liabilities
when their fair value is negative. Any gains or losses arising from the changes to the fair of the derivatives are taken directly to
profit or loss for the year.
The fair value of such derivatives is determined by reference to market values for similar instruments.
(t) Borrowing Costs
Borrowing costs are recognised as an expense when incurred.
(u) Leases
Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset – but not the legal
ownership – are transferred to entities in the consolidated group, are classified as finance leases.
Finance leases are capitalised by recognising an asset and a liability at the lower of the amounts equal to the fair value of the
leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments
are allocated between the reduction of the lease liability and the lease interest expense for the period.
Operating lease payments are recognised as an expense in the income statement on a straight line basis over the lease term.
25
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
1. Statement of Significant Accounting Policies (continued)
(v) Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated in the financial statements based upon historical knowledge and
best available current information. Estimates assume a reasonable expectation of future events; are based upon current trends and
economic data; and opinions obtained both externally and internally.
Management has identified the following critical accounting policies for which significant judgements, estimates and
assumptions are made:
Land, buildings and improvements
Land, buildings and improvements are revalued at least once every three years.
The Directors have based their valuation on an independent valuation prepared by Mr David D Johnston (A.A.P.I.) of Opteon
Valuers dated 30 April 2012 and effective for 90 days. The basis of the independent valuation is fair market value based on
existing use.
More information concerning this issue is contained in Note 12 to the financial statements.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences to the extent that management considers that it is
probable that future taxable profits will be available to utilise those temporary differences. More information concerning this
issue can be obtained from Note 4 to the financial statements.
Livestock valuations
All livestock is valued annually at balance date. The Directors have based their valuation on an Appraisal undertaken by Peter
Townsend, Livestock Agent for Roberts Limited; refer Note 8 to the financial statements.
(w) Change in Accounting Policy
The Company changed its accounting policy for the year ended 31 May 2012 relating to the classification of dairy livestock. In
accordance with industry practice the Directors have classified 15% of dairy livestock as a current asset. This represents a
reasonable estimate of the portion of the dairy herd that may turn over during the next twelve months. Comparative information
for 2011 has also been amended.
The aggregate effect of the change in accounting policy on the financial statements for the year ended 31 May 2012 is as follows:
2012
Consolidated Group:
Statement of Financial Position
Current Assets
Livestock and inventories
Non Current Assets
Livestock and inventories
Previous
Policy
A$
Adjustment
A$
2011
Revised
Policy
A$
Previously
Stated
A$
Adjustment
A$
Restated
A$
213,150
4,688,019
4,901,169
-
4,076,485
4,076,485
31,253,460
(4,688,019)
26,565,441
27,176,567
(4,076,485)
23,100,082
No taxation effect results from this change; in addition there has been no impact for the parent entity.
26
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
2. Revenue
Sales Revenue
- sale of goods and services
33,340,885
33,473,876
7,536,718
6,190,468
15,412
145,788
161,200
20,989
1,940
158,040
360,815
541,784
15,412
145,788
161,200
20,989
1,940
158,040
360,815
541,784
-
-
6,937,248
426,540
7,204,992
185,785
1,619
162,819
(1,006)
540,778
1,619
7,526,607
(1,006)
7,931,555
33,503,704
34,014,654
15,063,325
14,122,023
Cost of sales
1,455,780
1,729,973
174,911
566,566
Depreciation:
- buildings
- plant and equipment
Total depreciation
437,646
702,393
1,140,039
156,073
653,398
809,471
386,421
624,989
1,011,410
122,922
565,036
687,958
5,242,712
2,203,400
3,058,487
2,203,400
12,179
142,705
41,020
3,418,063
3,613,967
339,133
373,638
2,801,748
3,514,519
12,179
142,705
41,020
3,418,063
3,613,967
339,133
373,638
2,801,748
3,514,519
38,207
38,207
23,531
23,348
46,879
38,207
38,207
23,531
23,348
46,879
Other Revenue
- Finance Revenue
- interest from other corporations
- interest from sharefarmers
- dividends from other corporations
- foreign exchange gain
- Management and licence fees
- Equipment hired to managed farms
- Gain/(loss) on the disposal of property,
plant and equipment
Sub total - other revenue
Total revenue
3. Expenses
Employee benefit expense
(a)
Finance costs:
- foreign exchange loss
- interest rate break cost
- interest paid to parent, Tasman Farms Limited
- external parties finance costs
Total finance costs
Remuneration of auditor:
- audit or review
- other services
Total payment to auditor
(a) For the 2012 year farm salaries have been included which have previously been recorded as farm working expenses.
27
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
4. Income Tax
Current income tax benefit/(expense)
Deferred tax benefit/(expense)
75,101
513,200
308,228
(2,760,004)
637,425
16,104
(647,310)
(251,091)
Income tax benefit/(expense)
588,301
(2,451,776)
653,529
(898,401)
(1,929,609)
8,220,271
(2,298,062)
2,860,783
Statutory income tax rate of 30%
Non deductible items
Movement in temporary differences
(578,883)
5,408
(14,826)
2,466,081
8,176
(22,481)
(689,419)
5,408
30,482
858,235
8,176
31,990
Total income tax expense/(benefit)
(588,301)
2,451,776
(653,529)
898,401
61,052
58,110
3,272,112
(3,391,274)
25,076
48,575
6,801,519
(6,875,170)
59,299
535
58,110
3,272,112
(3,390,056)
25,518
80,644
48,575
6,801,519
(6,956,256)
-
-
-
-
Deferred tax liabilities from temporary differences on:
Livestock, fodder and other
Trade and other receivables
Revaluations - land and memorabilia
Deferred tax asset offset
4,450,961
169,178
34,854,502
(3,391,274)
8,173,278
543,526
34,500,938
(6,875,170)
448,567
27,829,187
(3,390,056)
801,694
26,608,242
(6,956,256)
Total deferred tax liabilities
36,083,367
36,342,572
24,887,698
20,453,680
A reconciliation of income tax benefit/(expense)
applicable to accounting profit before income tax
at the statutory income tax rate to income tax
expense at the Company's effective income tax rate
is as follows:
Accounting profit/(loss) before income tax
Deferred tax assets/liabilities
Deferred tax assets from temporary differences on:
Trade and other payables
Trade and other receivables
Provisions
Losses available
Deferred tax asset offset
Total deferred tax assets
Current income tax benefit/(expense) is based on the estimated taxable loss/(income) of the Company for the current year. The
difference between the accounting loss and estimated taxable loss for the current year is largely influenced by livestock
valuations.
28
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
4. Income Tax (continued)
Deferred tax benefit is primarily attributable to the decrease in the carrying amount of fodder.
Tax effects relating to each component of other comprehensive income is shown as follows:
2012
Before tax
amount
A$
Tax
(expense)/
benefit A$
2011
Net of Tax
Amount
A$
Before tax
amount
A$
Tax
(expense)/
benefit A$
Net of Tax
Amount
A$
Consolidated Group:
Increase/(decrease) in land and buildings
Increase/(decrease) in memorabilia
1,096,980
-
(329,094)
-
767,886
-
2,656,650
-
(796,995)
-
1,859,655
-
1,096,980
(329,094)
767,886
2,656,650
(796,995)
1,859,655
3,192,042
-
(957,613)
-
2,234,429
-
2,172,313
-
(651,694)
-
1,520,619
-
3,192,042
(957,613)
2,234,429
2,172,313
(651,694)
1,520,619
Parent Entity:
Increase/(decrease) in land and buildings
Increase/(decrease) in memorabilia
5. Directors' Remuneration and Retirement Benefits
Details of Key Management Personnel
Directors:
K G Sutton
E Gill
M L Hampton
M C Trousselot
T H Westacott
Executives:
M Guerin
M Harvey
N Morris
S Armstrong
J Walker
Governor - appointed 14 March 2011
Non Executive Director - appointed 6 January 2011
Non Executive Director - appointed 6 January 2011
Non Executive Director - appointed 4 March 2008
Non Executive Director - appointed 6 January 2011
Non Executive Director - appointed 25 September 2009
Chief Executive Officer - appointed 17 October 2011
Chief Financial Officer - appointed 1 January 2012
Former Chief Executive Officer - resigned 31 October 2011
Financial Controller - appointed 17 January 2011 and
resigned 15 July 2011
Financial Controller - resigned 28 January 2011
29
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
5. Directors' Remuneration and Retirement Benefits (continued)
Compensation of Key Management Personnel
Consolidated
2012 - Total compensation
2011 - Total compensation
Short term
employee
benefits
Post
employment
benefits
Termination
benefits
Share based
payment
Other
long term
benefits
Total
A$
A$
A$
A$
A$
A$
922,688
697,983
-
Notes
Directors:
K G Sutton - appointed 6 January 2011
E Gill - appointed 6 January 2011
M L Hampton - appointed 4 March 2008
M C Trousselot - appointed 6 January 2011
T H Westacott - appointed 25 September 2009
J C Watson, AM - resigned 14 March 2011
J T Andrews - resigned 27 January 2011
Dr R Pratt - resigned 8 December 2010
Executives:
M Guerin - appointed 17 October 2011
M Harvey - appointed 1 January 2012
N Morris - resigned 31 October 2011
S Armstrong - appointed 17 January 2011 and
resigned 15 July 2011
J Walker - appointed 1 February 2010 and resigned
28 January 2011
-
-
Consolidated
2012
2011
A$
A$
-
922,688
697,983
Parent Entity
2012
2011
A$
A$
103,874
67,508
64,656
46,022
49,186
-
26,077
17,135
51,895
4,125
49,015
70,215
33,785
26,169
103,874
67,508
64,656
46,022
49,186
-
26,077
17,135
51,895
4,125
49,015
70,215
33,785
26,169
291,177
48,400
231,302
290,502
291,177
48,400
231,302
290,502
20,563
37,731
20,563
37,731
-
91,334
-
91,334
922,688
697,983
922,688
697,983
6. Cash Flow Information
(a) Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement
of financial position as follows:
Cash at bank and on hand
30
443,783
44,301
6,768
44,301
443,783
44,301
6,768
44,301
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
6. Cash Flow Information (continued)
(b) Reconciliation of cash flow from
operations with profit/(loss) from ordinary
activities after income tax.
Operating profit/(loss) after taxation
Non cash flows in operating profit/(loss)
from ordinary activities:
Depreciation
Movement in doubtful debts
(Profit)/loss on sale of property, plant
and equipment
Foreign exchange (gain)/loss
Interest rate derivative change/break benefit
Changes in assets and liabilities:
(Increase)/decrease in receivables
(Increase)/decrease in other assets
(Increase)/decrease in dairy livestock
(Increase)/decrease in inventories
Increase/(decrease) in payables
Increase/(decrease) in tax liabilities
Increase/(decrease) in provisions
Cash flows from operations
(1,341,308)
5,768,495
(1,644,533)
1,962,382
1,140,039
2,699
809,471
(219,692)
1,011,410
-
687,958
40,610
(1,619)
12,179
142,705
1,006
(360,815)
339,133
(1,619)
12,179
142,705
1,006
(360,815)
339,133
(11,162)
(103,529)
(3,675,124)
2,136,077
2,161,203
(588,301)
31,784
(3,441,865)
(18,128)
(5,368,767)
(2,654,707)
2,344,354
2,451,776
36,710
(1,140,003)
23
1,771,096
959,282
(653,529)
31,784
(22,937)
(11,894)
(2,207,866)
821,752
898,401
36,710
(94,357)
(313,029)
488,795
2,184,440
55,000,000
50,000,000
55,000,000
50,000,000
55,000,000
50,000,000
55,000,000
50,000,000
54,197,490
45,625,758
54,197,490
45,461,933
54,197,490
45,625,758
54,197,490
45,461,933
802,510
4,374,242
802,510
4,538,067
802,510
4,374,242
802,510
4,538,067
(c) Credit stand-by arrangements and loan facilities
Unrestricted access was available to the following lines of credit:
Total facilities:
Revolving credit facility
Used at balance date:
Revolving credit facility
14
Unused at balance date:
Revolving credit facility
31
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
4,820,234
(29,724)
4,790,510
4,785,531
(6,600)
4,778,931
1,356,499
(6,600)
1,349,899
216,496
(6,600)
209,896
-
-
5,555,965
5,555,965
5,839,650
5,839,650
-
23,541
(20,425)
3,116
-
-
4,790,510
4,782,047
6,905,864
6,049,546
7. Trade and other receivables
CURRENT
Trade debtors
less provision for impairment
Other debtors:
Related party receivables:
- controlled entities
20
Other receivables:
Sharefarmer advances
less provision for impairment
Current trade receivables are non-interest bearing and generally on 30 day terms. A provision for impairment is recognised
where there is objective evidence that an individual trade or other receivable is impaired.
8. Livestock and Inventories
CURRENT
At net market value:
Dairy livestock (4,240 head - 2011: 3,602 head)
Sheep livestock (2,324 head - 2011: 2,057 head)
Beef livestock (3,826 head - 2011: 4,971 head)
Fodder on hand
Total at net market value
(a)
(b)
(c)
At cost:
Stores
Total at cost
NON CURRENT
At net market value:
Dairy livestock (23,174 head - 2011: 20,409 head)
(a)
Total at net market value
32
4,901,169
270,124
3,287,381
1,906,281
10,364,955
4,076,485
321,421
4,334,424
3,157,858
11,890,188
270,124
3,287,381
1,028,098
4,585,603
321,421
4,334,424
1,701,544
6,357,389
52,255
52,255
51,565
51,565
43,753
43,753
43,064
43,064
10,417,210
11,941,753
4,629,356
6,400,453
26,565,441
23,100,082
-
-
26,565,441
23,100,082
-
-
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
8. Livestock and Inventories (continued)
(d) During April 2012 the Company entered into an agreement to sell the Mawbush property (including 150 mixed aged dairy
cows for A$213,150) which completed in July 2012; refer Note 26. The net proceeds have been reclassified as a current asset.
In addition and in accordance with industry practice the Directors have classified 15% of the dairy livestock as current
(A$4,688,019, 2011:A$4,076,485); representing a reasonable estimate of the portion of the dairy herd that may turn over during
the next twelve months. Comparative information for 2011 has been amended; refer Note 1(w).
(e) An agreement was signed in April 2012 and completed in July 2012, to acquire the Greenfields property, including
A$400,000 worth of dairy livestock; refer Notes 24 and 26.
(f) Fodder expensed during the year amounted to A$1,270,890.
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
Reconciliation of carrying amount:
(a) Dairy Livestock
Carrying value at beginning of period
Sales
Purchases
Gains/(losses) arising from changes in fair value less estimated
point of sale costs attributed to physical changes
Gains/(losses) arising from changes in fair value less estimated
point of sale costs attributed to price changes
Carrying value at end of period
Attributed to:
Current asset
Non current asset
8(d)
(b) Sheep Livestock
Carrying value at beginning of period
Sales
Purchases
Gains/(losses) arising from changes in fair value less estimated
point of sale costs attributed to physical changes
Gains/(losses) arising from changes in fair value less estimated
point of sale costs attributed to price changes
Carrying value at end of period
33
27,176,567
(1,167,997)
1,569,766
21,652,854
(1,008,461)
1,163,407
-
-
3,099,709
1,747,274
-
-
788,565
3,621,493
-
-
31,466,610
27,176,567
-
-
4,901,169
26,565,441
4,076,485
23,100,082
-
-
31,466,610
27,176,567
-
-
321,421
(175,399)
5,450
244,574
(123,654)
9,250
321,421
(175,399)
5,450
244,574
(123,654)
9,250
207,937
201,718
207,937
201,718
(89,285)
(10,467)
(89,285)
(10,467)
270,124
321,421
270,124
321,421
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
4,334,424
(2,363,500)
169,462
3,268,426
(1,981,202)
557,286
4,334,424
(2,363,500)
169,462
3,268,426
(1,981,202)
557,286
1,135,503
1,132,555
1,135,503
1,132,555
11,492
1,357,359
11,492
1,357,359
3,287,381
4,334,424
3,287,381
4,334,424
8. Livestock and Inventories (continued)
Reconciliation of carrying amount:
(c) Beef Livestock
Carrying value at beginning of period
Sales
Purchases
Gains/(losses) arising from changes in fair value less estimated
point of sale costs attributed to physical changes
Gains/(losses) arising from changes in fair value less estimated
point of sale costs attributed to price changes
Carrying value at end of period
Physical quantities of livestock:
#
#
#
#
(a) Dairy Livestock
Mixed age cows
Rising 2 year heifers
Rising 1 year heifers
Calves
Dairy bulls
Total dairy livestock
17,552
3,760
2,610
2,787
705
27,414
16,175
1,209
4,226
2,257
144
24,011
-
-
Attributed to:
Current asset
Non current asset
Total dairy livestock
4,240
23,174
27,414
3,602
20,409
24,011
-
-
(b) Sheep Livestock
Breeding ewes
Sale lambs
Rams
Total sheep livestock
1,500
793
31
2,324
1,373
645
39
2,057
1,500
793
31
2,324
1,373
645
39
2,057
(c) Beef Livestock
Breeding cows
Rising 1 year heifers
Dairy bull calves
Bulls, steers and trading cattle
Total beef livestock
1,062
650
2,114
3,826
1,471
645
194
2,661
4,971
1,062
650
2,114
3,826
1,471
645
194
2,661
4,971
34
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
8. Livestock and Inventories (continued)
Nature of Assets
Beef cattle and sheep are run on the non dairying land on the Woolnorth property. The total number of beef cattle carried at 31
May 2012 has declined; this decline in numbers continues to reflect the changed focus of the dairy support operations. There is
now a focus on high margin cattle finishing both on the Company’s own account and through an agistment arrangement with the
local meat processor. Large volumes of feed are conserved and utilised by the dairy operations. The dairy support operations
also provide grazing for dairy cows both when wintered off the milking platforms and when it is appropriate to retain the dairy
animal and place it back into an autumn calving pattern once in a suitable condition. Dairy cows are run on the Company’s 24
dairy units. Replacement dairy heifers are run on the Heifer Block at Woolnorth and are managed as part of the Company’s dairy
support operations. The financial risk management strategy for livestock incorporates the above and the Company’s overall
financial risk management strategy as outlined in Note 21.
Valuation of Livestock and Fodder
All livestock are valued annually at balance date. The Directors have based their valuation on an appraisal undertaken by Peter
Townsend, Livestock Agent for Roberts Limited. All feed stocks are valued annually at balance date. The Directors have based
their valuation on an appraisal undertaken by independent farm consultant Penny Williams.
Livestock Numbers
A stock audit process is used to tally: all livestock numbers with physical counts for all classes of stock (an independent manager
is required to sign off on all tallies); all feed reserves, including testing for quality and adjustment of figures where wastage has
occurred.
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
9. Other
CURRENT
Prepayments
Deposit on property purchase
24
Prepayments
NON CURRENT
Memorabilia
(a)
53,426
100,000
49,897
-
33,203
-
33,226
-
153,426
49,897
33,203
33,226
1,438,126
1,438,126
1,438,126
1,438,126
(a) A valuation was conducted of the memorabilia by Robert Broughton, an independent valuer as at 31 May 2010, with the
change recorded against the asset revaluation reserve, net of future tax.
10. Other Financial Assets
NON CURRENT
Interest rate break benefit
Shares:
- in subsidiaries at cost
- in unlisted dairy processor at cost
- in unlisted other corporations at cost
Total shares
22(a)
22(a)
35
512,622
655,327
512,622
655,327
1,723,246
594
1,723,246
594
40,973,832
50
36,843,898
50
1,723,840
1,723,840
40,973,882
36,843,948
2,236,462
2,379,167
41,486,504
37,499,275
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
11. Interest in Subsidiaries
Country of
Incorporation
Shares as a percentage
2012
(%)
2011
(%)
Contribution to
Consolidated Profits
2012
2011
A$
A$
Parent Entity:
The Van Diemen's Land
Company
United
Kingdom
n/a
n/a
(2,298,062)
2,860,783
Subsidiaries:
The Van Diemen's Land
Company - Dairies Pty Ltd
Tasman Farmdale Pty Ltd
Tasman Farms Pty Ltd
Australia
Australia
Australia
100
100
100
100
100
100
(1,815,956)
2,184,409
-
1,257,505
4,101,983
-
(1,929,609)
8,220,271
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
12. Property, Plant and Equipment
Land, buildings & improvements (Directors' valn)
Plant & equipment (cost less acc. depreciation)
(a)
(b)
(a) Land, buildings & improvements at Directors' valn
Capitalised projects not complete at cost
less accumulated depreciation
168,228,718
4,142,563
162,950,000
3,269,469
135,628,718
3,779,548
126,300,000
3,006,815
172,371,281
166,219,469
139,408,266
129,306,815
166,824,192
1,404,526
-
158,734,040
4,215,960
-
134,224,192
1,404,526
-
122,084,040
4,215,960
-
168,228,718
162,950,000
135,628,718
126,300,000
The basis of the independent valuation of land, buildings and improvements is fair market value based on existing use. The
farms were valued by the Directors at 31 May 2012 based on an independent valuation prepared by Mr David D Johnston
(A.A.P.I.) of Opteon Valuers dated 30 April 2012 and effective for 90 days. The increase was recorded against the asset
revaluation reserve, net of future tax. The Company’s policy is to revalue the land and buildings up to three years apart. The
properties were last valued at 31 May 2011 but the Directors determined it prudent to revalue the assets again this year.
Rabobank Australia Limited holds a registered mortgage over the property, and a registered equitable mortgage over the asset.
During April 2012 the Company entered into an agreement to sell the Mawbush property which completed in July 2012. The net
proceeds receivable from the sale of A$1,954,938 have been reclassified as a current asset.
(b) Plant & equipment at cost
Capitalised projects not complete at cost
less accumulated depreciation
36
9,230,522
(5,087,959)
6,772,288
961,259
(4,464,078)
8,046,373
(4,266,825)
5,765,904
961,259
(3,720,348)
4,142,563
3,269,469
3,779,548
3,006,815
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
12. Property, Plant and Equipment (continued)
(c) Reconciliations – Reconciliations of the carrying amounts of property, plant and equipment at the beginning and at the end of
the current financial year:
Land,
buildings &
impovements
A$
Consolidated
Plant and
equipment
Total
A$
A$
Land,
buildings &
impovements
A$
Parent Entity
Plant and
equipment
Total
A$
A$
Year ended 31 May 2012
As at 1 June 2011, net of accumulated
depreciation and impairment
Additions
Capitalised projects not complete
Transferred to assets held for sale
Disposals
Revaluation
Gain/(loss) on disposal
Depreciation charge for the year
162,950,000
5,169,796
1,404,526
(1,954,938)
1,096,980
(437,646)
3,269,469
1,598,105
(24,237)
1,619
(702,393)
166,219,469
6,767,901
1,404,526
(1,954,938)
(24,237)
1,096,980
1,619
(1,140,039)
126,300,000
5,118,571
1,404,526
3,192,042
(386,421)
3,006,815
1,420,340
(24,237)
1,619
(624,989)
129,306,815
6,538,911
1,404,526
(24,237)
3,192,042
1,619
(1,011,410)
As at 31 May 2012, net of accumulated
depreciation and impairment
168,228,718
4,142,563
172,371,281
135,628,718
3,779,548
139,408,266
Year ended 31 May 2011
As at 1 June 2010, net of accumulated
depreciation and impairment
Additions
Capitalised projects not complete
Disposals
Revaluation
Gain/(loss) on disposal
Depreciation charge for the year
154,404,782
1,828,681
4,215,960
2,656,650
(156,073)
2,093,837
885,368
961,259
(16,591)
(1,006)
(653,398)
156,498,619
2,714,049
5,177,219
(16,591)
2,656,650
(1,006)
(809,471)
118,619,782
1,414,867
4,215,960
2,172,313
(122,922)
1,813,610
814,579
961,259
(16,591)
(1,006)
(565,036)
120,433,392
2,229,446
5,177,219
(16,591)
2,172,313
(1,006)
(687,958)
As at 31 May 2011, net of accumulated
depreciation and impairment
162,950,000
3,269,469
166,219,469
126,300,000
3,006,815
129,306,815
As at 31 May 2012
Cost or fair value
Accumulated depreciation and impairment
168,228,718
-
9,230,522
(5,087,959)
177,459,240
(5,087,959)
135,628,718
-
8,046,373
(4,266,825)
143,675,091
(4,266,825)
Net carrying amount
168,228,718
4,142,563
172,371,281
135,628,718
3,779,548
139,408,266
As at 31 May 2011
Cost or fair value
Accumulated depreciation and impairment
162,950,000
-
7,733,547
(4,464,078)
170,683,547
(4,464,078)
126,300,000
-
6,727,163
(3,720,348)
133,027,163
(3,720,348)
Net carrying amount
162,950,000
3,269,469
166,219,469
126,300,000
3,006,815
129,306,815
37
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
12. Property, Plant and Equipment (continued)
(d) Cost model –The carrying value of land, buildings and improvements under the cost model as at 31 May 2012 would be
A$50,378,517 for the Consolidated Group and A$32,715,942 for the Parent Entity.
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
6,958,552
270,839
589,484
4,829,697
12,807
815,171
2,777,804
214,333
508,406
1,864,191
79,069
598,000
7,818,875
5,657,675
3,500,543
2,541,260
54,197,490
334,740
225,876
54,197,490
334,740
225,876
322,091
-
300,398
-
322,091
11,531,342
300,398
13,629,781
54,854,321
526,274
66,385,663
14,156,055
141,092
670,257
45,625,758
141,092
316,568
141,092
670,257
45,461,933
141,092
316,568
811,349
46,083,418
811,349
45,919,593
13. Trade and other payables
CURRENT
Unsecured liabilities:
Trade creditors
GST clearing
Other creditors
14. Interest Bearing Liabilities
CURRENT
Secured liabilities:
Revolving credit facility - Rabobank Australia Ltd
Equipment finance loans
Unsecured liabilities:
Parent - Tasman Farms Limited
Controlled entity - Tasman Farmdale Ltd
NON CURRENT
Secured liabilities:
Revolving credit facility - Rabobank Australia Ltd
Parent - Tasman Farms Limited
Equipment finance loans
(a)
21(a)
(a)
21(a)
(a) The above liabilities are secured by a registered charge over the property and a registered equitable mortgage over the assets
of the Company. In addition, the liabilities are secured by a cross guarantee, a registered charge over the property, and a
registered equitable mortgage over the assets of subsidiary Tasman Farmdale Pty Limited.
As at 31 May 2012 the Company was in breach of the interest banking covenant with Rabobank Australia Limited. Although a
waiver has been received from Rabobank since year end, the technical provisions of IAS 1: Presentation of Financial Statements,
require that the entire borrowings from Rabobank be classified as a current liability for these financial statements.
The Rabobank All-in-one facility (Facility Agreement) was renewed on 25 June 2012 with a revised limit of A$60.55 million.
On 14 August 2012, Rabobank agreed to waive the Interest Cover breach for the year ended 31 May 2012. The Facility
Agreement was also amended on 14 August 2012 so that the Loan Conditions Review will take place on 31 October 2012, and
thereafter every second year on the anniversary of that date. The facility expires on 30 November 2020.
38
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
15. Provisions
CURRENT
Employee benefits:
Provision for employee entitlements
Other:
Provision for audit fee
169,228
138,609
169,228
138,609
24,471
23,306
24,471
23,306
193,699
161,915
193,699
161,915
60
51
60
51
41,768,941
41,768,941
41,768,941
41,768,941
41,768,941
41,768,941
41,768,941
41,768,941
(a) Movement in paid up capital
Beginning of the financial year
Movement
41,768,941
-
32,187,925
9,581,016
41,768,941
-
32,187,925
9,581,016
End of the financial year
41,768,941
41,768,941
41,768,941
41,768,941
Number of employees at reporting date
16. Contributed Equity
Paid up capital:
Ordinary shares fully paid
No. of shares No. of shares
No. of shares No. of shares
(b) Movement in Shares
Beginning of the financial year
Movement
88,274,688
-
75,500,000
12,774,688
88,274,688
-
75,500,000
12,774,688
End of the financial year
88,274,688
88,274,688
88,274,688
88,274,688
(c) Terms and Conditions of Contributed Equity
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the
proceeds from the sale of all surplus assets in proportion to the number and amounts paid up on shares held. Ordinary shares
entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
(d) Capital Management
When managing capital, the Company’s objective is to ensure the Company continues as a going concern as well as maintaining
an optimal return to shareholders and benefits for other stakeholders. The Company also aims to maintain a capital structure that
ensures the lowest cost of capital available to the entity. The debt leverage of the consolidated entity (Debt /Equity) as at the 31
May 2012 is 46.1% (2011: 38.5%). The consolidated entity aims to operate at a leverage ratio of between 25% and 50%.
39
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
Asset
Revaluation
Reserve
A$
Consolidated
Other
Reserves
Total
A$
A$
Asset
Revaluation
Reserve
A$
Parent Entity
Other
Reserves
Total
A$
A$
17. Reserves
As at 1 June 2010
73,628,203
1,313,332
74,941,535
54,013,753
1,313,332
55,327,085
Revaluation of land and buildings
Revaluation of memorabilia
2,656,650
-
-
2,656,650
-
2,172,313
-
-
2,172,313
-
Subtotal
Deferred tax asset/(liability) on revaluation
2,656,650
(796,995)
-
2,656,650
(796,995)
2,172,313
(651,694)
-
2,172,313
(651,694)
75,487,858
1,313,332
76,801,190
55,534,372
1,313,332
56,847,704
Revaluation of land and buildings
Revaluation of memorabilia
1,096,980
-
-
1,096,980
-
3,192,042
-
-
3,192,042
-
Subtotal
Deferred tax asset/(liability) on revaluation
1,096,980
(329,094)
-
1,096,980
(329,094)
3,192,042
(957,613)
-
3,192,042
(957,613)
76,255,744
1,313,332
77,569,076
57,768,801
1,313,332
59,082,133
As at 31 May 2011
As at 31 May 2012
Asset revaluation reserve
The asset revaluation reserve is used to record increments and decrements in the value of non-current assets; it can only be used
for distributions in limited circumstances.
Other reserves
(i) Surplus on landed estates - This reserve is used to record realised capital profits on landed estates.
(ii) Capital reserve - This reserve records realised capital profits other than on landed estates.
(iii) General reserve - This reserve contains amounts of realised profits, set aside by Directors for special projects.
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
18. Retained Profits/(Accumulated Losses)
Retained profits/(accumulated losses)
at the beginning of the financial year
Net profit/(loss) attributable to the
members of the Company
Retained profits/(accumulated losses)
at the end of the financial year
40
2,612,857
(3,155,638)
(1,077,406)
(3,039,788)
(1,341,308)
5,768,495
(1,644,533)
1,962,382
1,271,549
2,612,857
(2,721,939)
(1,077,406)
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
19. Segment Information
The Company and its controlled entities operate in one geographical area, Australia, and operate as pastoralists and dairy
farmers.
20. Related Parties
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to
other parties unless otherwise stated.
Notes
Consolidated
2012
2011
A$
A$
Parent Entity
2012
2011
A$
A$
(i) Ultimate Parent Entity
Interest paid to ultimate parent entity
Advance from ultimate parent entity
Term loan from ultimate parent entity
(a)
(a)
(a)
41,020
322,091
141,092
373,638
300,398
141,092
41,020
322,091
141,092
373,638
300,398
141,092
(ii) Wholly Owned Companies
Income received from subsidiaries representing
agistment, contracting, silage, management and
licence fees.
Livestock sold to subsidiaries
Advance to subsidiaries
Advance from subsidiaries
(b)
(b)
(b)
-
-
11,134,878
721,687
5,555,965
11,531,342
8,011,466
5,839,650
13,629,781
(a) The ultimate parent entity has provided the above advance with no fixed repayment date. Interest is charged on the
outstanding balance at commercial rates; refer Note 21(a).
(b) Advances to/from subsidiaries have no fixed repayment date. No interest is charged on outstanding balances. The Van
Diemen’s Land Company operates a combined borrowing facility on behalf of the group, and funds are advanced to or from
subsidiaries as required to meet outstanding obligations and minimise the average cost of funds.
The Van Diemen’s Land Company sold 700 heifers to Tasman Farmdale Limited during the year on normal commercial terms.
There has been no impairment or write off of related party balances.
41
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
21. Financial Risk Management Objectives
The Company’s principal financial instruments comprise bank loans, equipment finance loans, loans from the parent entity, and
cash.
The main purpose of these financial instruments is to raise finance for the Company’s operations. The Company has various
other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The
main risks arising from the Company’s financial instruments are interest rate risk, liquidity risk, commodity price risk and credit
risk. The Court of Directors reviews and agrees policies for managing each of these risks as summarised below.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial
liability and equity instrument are disclosed in Note 1 to the financial statements.
(a) Interest rate risk
The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt facility where the
interest rate has not been fixed. As at 31 May 2012 the Company had exposure to A$54,197,490 (2011: A$45,625,758) in
borrowings with Rabobank Australia Limited. Through the use of specific arrangements within the banking facility, the
Company has been able to fix a component of its debt obligations with Rabobank Australia Limited over a period of 3 to 5 years.
The fixed components are: A$10 million over 4 years at a rate of 6.60% expiring 17 May 2013 and A$20 million over 5 years at
a rate of 6.85% expiring 19 May 2014. The balance of the debt obligation is taken at the bank’s variable market rate, which at 31
May 2012 was $A24,197,490 at 6.65% (2011: A$5,625,758 at 7.35%). The weighted average interest rate on the fixed
component of debt is 6.77% (2011: 6.63%) and on the total debt with Rabobank Australia Limited is 6.71% (2011: 6.71%).
As at 31 May 2012, the Company had exposure to A$463,183 (2011: A$441,490) in borrowings from the parent entity (Tasman
Farms Limited). This includes A$141,092 with a 1 year term at a fixed rate of 12%. The balance of the borrowings from the
parent entity have no specific term and incur an interest rate of 0.5% above the bank variable rate, which at 31 May 2012 was
7.15% (2011: 7.75%).
It is the policy of the Company to enter into derivative transactions, including interest rate swap contracts, in appropriate
circumstances to manage interest rate risk. Other than those referred to above, the Company has no other derivative transactions
in place. It is, and has been throughout the period under review, the Company’s policy that no trading in financial instruments be
undertaken.
(b) Commodity price risk
The Company’s exposure to commodity price risk is primarily related to international milk commodity prices and United States
manufacturing beef prices.
(c) Credit risk
The exposure at balance date to credit risk is limited to the carrying value of trade debtors and other receivables. Credit risk
exposure is concentrated with the large milk and meat processors supplied by the Company’s Tasmanian farms; in particular
Fonterra Australia (Bonlac Supply Company) Limited. This risk is minimised by monitoring receivable balances on an on-going
basis to ensure all outstanding amounts are paid within a two week period.
(d) Liquidity risk
The Company’s objective is to maintain liquidity of funding through the use of bank loans and normal credit terms for its dairy
and beef activities.
42
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
22. Financial Instruments
(a) Net Fair Value
The Company uses various methods in estimating the fair value of a financial instrument. The methods comprise:
- Level 1: the fair value is calculated using quoted prices in active markets.
- Level 2: the fair value is estimated using inputs other than quote markets included in Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices).
- Level 3: the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised below:
Consolidated
Valuation technique:
2012
Quoted
Market
Price
Level 1
A$
Financial Assets
Unlisted shares
Interest Rate Break Benefit
2011
Financial Assets
Unlisted shares
Interest Rate Break Benefit
594
594
A$
Market
observable
inputs
Level 2
A$
512,622
512,622
A$
594
594
655,327
655,327
Non market
observable
inputs
Level 3
A$
1,723,246
1,723,246
A$
1,723,246
1,723,246
Parent
Valuation technique:
Total
A$
Quoted
Market
Price
Level 1
A$
1,723,840
512,622
2,236,462
A$
1,723,840
655,327
2,379,167
50
50
A$
Market
observable
inputs
Level 2
A$
512,622
512,622
A$
50
50
Non market
observable
inputs
Level 3
A$
655,327
655,327
A$
Total
A$
50
512,622
512,672
A$
-
50
655,327
655,377
For financial instruments not quoted in active markets, the Company uses valuation techniques such as present value techniques,
comparison to similar instruments for which market observable prices exist and other relevant models used by market
participants. These valuation techniques are both observable and unobservable market inputs.
Financial instruments that use valuation techniques with only observable market inputs or unobservable inputs that are not
significant to the overall valuation include interest rate swaps and interest rate break benefits.
There were no transfers between Level 1 and Level 2 during the year.
43
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
22. Financial Instruments (continued)
(b) Interest Rate Risk
The following table sets out the carrying value by maturity, of the financial instruments exposed to interest rate risk:
Weighted
average
interest
rate %
A$
<1 year
A$
1 - 5 years
CONSOLIDATED - Year ended 31 May 2012
Financial Assets
Cash assets
1.50%
443,783
Financial Liabilities
Equipment finance loans
Bank loans
Parent - Tasman Farms Ltd
A$
5 - 10 years
A$
>10 years
A$
Total
-
-
-
443,783
8.35%
6.71%
9.04%
334,740
54,197,490
322,091
670,257
141,092
-
-
1,004,997
54,197,490
463,183
PARENT - Year ended 31 May 2012
Financial Assets
Cash assets
4.83%
6,768
-
-
-
6,768
334,740
54,197,490
322,091
670,257
141,092
-
-
1,004,997
54,197,490
463,183
44,301
-
-
-
44,301
8.16%
6.71%
9.11%
225,876
300,398
316,568
141,092
45,625,758
-
-
542,444
45,625,758
441,490
PARENT - Year ended 31 May 2011
Financial Assets
Cash assets
0.74%
44,301
-
-
-
44,301
225,876
300,398
316,568
141,092
45,461,933
-
-
542,444
45,461,933
441,490
Financial Liabilities
Equipment finance loans
Bank loans
Parent - Tasman Farms Ltd
8.35%
6.71%
9.04%
CONSOLIDATED - Year ended 31 May 2011
Financial Assets
Cash assets
0.74%
Financial Liabilities
Equipment finance loans
Bank loans
Parent - Tasman Farms Ltd
Financial Liabilities
Equipment finance loans
Bank loans
Parent - Tasman Farms Ltd
8.16%
6.71%
9.11%
The other financial instruments of the Company not included in the above tables are non-interest bearing and therefore not
subject to interest rate risk.
44
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
22. Financial Instruments (continued)
(c) Sensitivity Analysis
The Company has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. This sensitivity
analysis demonstrates the effect on the current year results and equity which could result from a change in interest rates.
As at 31 May 2012, assuming all other variables remain constant, the effect on profit/(loss) and equity as a result of changes in
interest rate would be as follows:
Consolidated
Parent Entity
Notes
2012
2011
2012
2011
A$
A$
A$
A$
Change in Profit/(Loss)
Increase interest rate by 1%
Decrease interest rate by 1%
(245,195)
245,195
(59,561)
59,561
(245,195)
245,195
(57,623)
57,623
Change in Equity
Increase interest rate by 1%
Decrease interest rate by 1%
(245,195)
245,195
(59,561)
59,561
(245,195)
245,195
(57,623)
57,623
The above interest rate sensitivity analysis has been performed based upon the assumption that all other variables remain
unchanged and has only been applied to the portion of Company debt that is not fixed: refer Note 21(a).
23. Capital and Leasing Commitments
Lease commitments under non cancellable
operating leases:
Not later than one year
Later than one year and not later than two years
Later than two years and not later than five years
Greater than five years
36,596
35,896
98,294
41,250
39,539
33,215
82,999
68,750
36,596
35,896
98,294
41,250
39,539
33,215
82,999
68,750
212,036
224,503
212,036
224,503
Not later than one year
Later than one year and not later than five years
Greater than five years
Less future finance charges
405,838
731,643
(132,484)
260,827
346,415
(64,798)
405,838
731,643
(132,484)
260,827
346,415
(64,798)
Total finance lease commitments
1,004,997
542,444
1,004,997
542,444
Total operating lease commitments
Lease commitments under non cancellable
finance leases:
45
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Notes to the Financial Statements (continued)
for the year ended 31 May 2012
24. Commitments and Contingencies
At balance date the Company had commitments for the purchase of an additional farm and livestock of A$3,993,000 and for
projects underway of A$nil (2011: A$1,775,547).
At balance date no contingencies existed (2011: A$nil).
Pursuant to section 292(2) of the Corporations Act 2001, the controlled entities of the Company, being The Van Diemen’s Land
Company – Dairies Pty Limited, Tasman Farmdale Pty Limited, and Tasman Farms Pty Limited, are not required to prepare
financial statements. The income and balance sheet of each controlled entity are fully incorporated in the consolidated income
statement and balance sheet of the consolidated Company as presented in these financial statements.
25. Economic Dependency
The majority of the Company’s revenue is derived from Fonterra Australia (Bonlac Supply Company) Limited.
26. Subsequent Events
During April 2012 the Company entered into an agreement to sell the Mawbush property owned by Tasman Farmdale Pty
Limited and a separate agreement to purchase a dairy farm (including livestock) called Greenfields; at Togari, near Smithton. It
is planned to manage the Greenfields farm in conjunction with the neighbouring property of Blackwood. The Mawbush property
has been reclassified as a current asset and is recorded at the sale price less costs, refer Note 12. Dairy livestock has been
reclassified as a current asset, refer Note 8.
Both transactions have settled by the date of this report.
The Rabobank All-in-one facility (Facility Agreement) was renewed on 25 June 2012 with a revised limit of A$60.55 million.
On 14 August 2012, Rabobank agreed to waive the Interest Cover breach for the year ended 31 May 2012. The Facility
Agreement was also amended on 14 August 2012 so that the Loan Conditions Review will take place on 31 October 2012, and
thereafter every second year on the anniversary of that date.
46
THE VAN DIEMEN'S LAND COMPANY AND CONTROLLED ENTITIES (ARBN: 009 475 601)
Statement of Interest
Statement of Directors and Officers and their direct interest in the Company
Shareholding as at
31 May 2012
31 May 2011
K G Sutton (Governor)
E Gill
M L Hampton
M C Trousselot
T H Westacott
Appointed Director 6 January 2011
Appointed 6 January 2011
Appointed 4 March 2008
Appointed 25 February 2009
resigned 26 May 2010
reappointed 6 January 2011
Appointed 25 September 2009
The above shareholdings satisfy the requirements to be a director under the Royal Charter.
47
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1
1
1
2
1
1
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48

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