COMMS GROUP LTD — Annual Report 2017

Dec 19, 2017

WOFFLE PTY LTD A.B.N 13 140 249 261

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017

Liability limited by a scheme approved under Professional Standards Legislation

Mair Mansfield & Co. Accountants & Tax Agents Suite 210, 20 Dale Street BROOKVALE NSW 2100 Tel: 9907 3488 Fax: 9907 4988 Email:admin@mairmansfield.com.au

WOFFLE PTY LTD A.B.N 13 140 249 261

CONTENTS

Income Statement	1
Balance Sheet	2
Notes to the Financial Statements	3
Directors' Declaration	10
Compilation Report	11
Detailed Profit and Loss Statement	12
Appendix 1 - Minutes
Appendix 2 - Tax Return
Appendix 3 - Depreciation Schedule

WOFFLE PTY LTD A.B.N 13 140 249 261

INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2017

Note	2017 $	2016 $
Revenue Cost of sales Gross profit Depreciation and amortisation expenses Employee benefits expenses Finance costs Other expenses Profit before income tax Income tax expense Profit after income tax Retained earnings (Accumulated losses) at the beginning of the financial year Interim Dividend Paid Profit attributable to members of the company	840,950.14 (452,630.69) 388,319.45 (6,100.00) (193,775.20) (500.27) (60,474.28) 127,469.70 (27,740.63) 99,729.07 31,424.90 (80,000.00) 51,153.97	748,577.37 (454,191.89)
		294,385.48 (8,172.00) (187,056.00) (1,855.34) (49,970.45)
		47,331.69 (11,913.57)
		35,418.12 (3,993.22) -
		31,424.90

The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 1

WOFFLE PTY LTD A.B.N 13 140 249 261

BALANCE SHEET AS AT 30 JUNE 2017

Note	2017 $	2016 $
ASSETS CURRENT ASSETS Cash and cash equivalents 3 Trade and other receivables 4 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment 5 Intangible assets 6 TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and Other Payables 7 Borrowings 8 Provision for Income Tax TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 1000 Fully Paid Ordinary Shares of $1 Retained earnings 9 TOTAL EQUITY	27,705.83 26,748.92 54,454.75 18,267.28 54,545.45 72,812.73 127,267.48 54,986.61 1,498.27 18,628.63 75,113.51 75,113.51 52,153.97 1,000.00 51,153.97 52,153.97	91,113.92 10,406.45
		101,520.37
		24,367.28 54,545.45
		78,912.73
		180,433.10
		91,218.84 48,884.79 7,904.57
		148,008.20
		148,008.20
		32,424.90
		1,000.00 31,424.90
		32,424.90

The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 2

WOFFLE PTY LTD A.B.N 13 140 249 261

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

The financial statements cover the business of WOFFLE PTY LTD and have been prepared to meet the needs of stakeholders and to assist in the preparation of the tax return.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The Company is non reporting since there are unlikely to be any users who would rely on the general purpose financial statements.

The special purpose financial statements have been prepared in accordance with the significant accounting policies described below and do not comply with any Australian Accounting Standards unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non current assets, financial assets and financial liabilities.

Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent with prior reporting periods unless otherwise stated.

2 Summary of Significant Accounting Policies

Income Tax

The tax expense recognised in the statement of profit or loss and other comprehensive income comprises of current income tax expense plus deferred tax expense.

Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (loss) for the year and is measured at the amount expected to be paid to (recovered from) the taxation authorities,using the tax rates and laws that have been enacted or substantively enacted by the end of the reporting period. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred tax is not provided for the following:

• 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 accounting profit nor taxable profit (tax loss).

• Taxable temporary differences arising on the initial recognition of goodwill.

These notes should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 3

WOFFLE PTY LTD A.B.N 13 140 249 261

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting year.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and losses can be utilised.

Current tax assets and liabilities are offset where there is a legally enforceable right to set off the recognised amounts and there is an intention either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Deferred tax assets and liabilities are offset where there is a legal right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Current and deferred tax is recognised as income or an expense and included in profit or loss for the period except where the tax arises from a transaction which is recognised in other comprehensive income or equity, in which case the tax is recognised in other comprehensive income or equity respectively.

Property, Plant and Equipment

Property, plant and equipment are carried at cost. All assets, excluding freehold land and buildings, are depreciated over their useful lives to the company. The depreciable amount of property, plant and equipment (excluding freehold land) is depreciated on a straight-line basis. Depreciation commences from the time the asset is available for its intended use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The carrying value of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent disposal. The expected net cash flows have not been discounted in determining recoverable amounts.

These notes should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 4

WOFFLE PTY LTD A.B.N 13 140 249 261

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Depreciation

The depreciation method and useful life used for items of property, plant and equipment (excluding freehold land) reflects the pattern in which their future economic benefits are expected to be consumed by the company. Depreciation commences from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation method and useful life of assets is reviewed annually to ensure they are still appropriate.

Impairment of Non-Financial Assets

At the end of each reporting period the company determines whether there is an evidence of an impairment indicator for non-financial assets.

Where this indicator exists and regardless for goodwill, indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevant cash-generating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss , except for goodwill.

Intangibles

Other intangibles

Costs in relation to the formation of the entity are capitalised as an asset.

These notes should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 5

WOFFLE PTY LTD A.B.N 13 140 249 261

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Trade and Other Receivables

Trade receivables are recognised initially at the transaction price (i.e. cost) and are subsequently measured at cost less provision for impairment. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

At the end of each reporting period, the carrying amount of trade and other receivables are reviewed to determine whether there is any objective evidence that the amounts are not recoverable. If so, an impairment loss is recognised immediately in income statement.

Cash and Cash Equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Revenue and Other Income

Revenue is recognised when the business is entitled to it.

Sale of goods

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods.

Other income

Other income is recognised on an accruals basis when the company is entitled to it.

Trade and Other Payables

Trade and other payables represent the liabilities at the end of the reporting period for goods and services received by the company that remain unpaid.

Trade payables are recognised at their transaction price. Trade payables are obligations on the basis of normal credit terms.

These notes should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 6

WOFFLE PTY LTD A.B.N 13 140 249 261

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the balance sheet.

These notes should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 7

WOFFLE PTY LTD A.B.N 13 140 249 261

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

	2017 $	2016 $
3 Cash and Cash Equivalents Cash on Hand Cash at Bank 4 Trade and Other Receivables Current Trade Debtors 5 Property, Plant and Equipment Land and Buildings Hardware Less: Accumulated Depreciation Total Land and Buildings Office Equipment Less: Accumulated Depreciation Motor Vehicles Less: Accumulated Depreciation Total Plant and Equipment Total Property, Plant and Equipment 6 Intangible Assets Formation Expenses Less: Accumulated Amortisation Franchise Costs Total	1,000.00 26,705.83 27,705.83 26,748.92 92,525.29 (92,525.00) 0.29 0.29 3,529.05 (3,514.00) 15.05 65,429.94 (47,178.00) 18,251.94 18,266.99 18,267.28 518.18 (518.18) - 54,545.45 54,545.45	1,000.00 90,113.92
		91,113.92
		10,406.45
		92,525.29 (92,525.00)
		0.29
		0.29
		3,529.05 (3,499.00)
		30.05
		65,429.94 (41,093.00)
		24,336.94
		24,366.99
		24,367.28
		518.18 (518.18)
		-
		54,545.45
		54,545.45

These notes should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 8

WOFFLE PTY LTD A.B.N 13 140 249 261

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

	2017 $	2016 $
7 Trade and Other Payables Current Loans from Directors Loans Directors - Nathan Pitman PAYG Instalment Payable Employee Entitlements GST Payable GST Adjustment PAYG Withholding Payable 8 Borrowings Current Hire Purchase Liability - Chris Van Less: Unexpired Hire Purchase Liability Hire Purchase Liability - Nathan Van Less: Unexpired Hire Purchase Liability St George Credit Card - Chris St George Credit Card - Nathan Total current borrowings Total borrowings 4 9 Retained Earnings Retained earnings (Accumulated losses) at the beginning of the financial year Net profit attributable to members of the company Dividends provided for or paid Retained earnings at the end of the financial year	6,599.47 18,850.32 - - 14,932.82 3,840.00 10,764.00 54,986.61 - - - - 881.49 616.78 1,498.27 1,498.27 4 31,424.90 99,729.07 (80,000.00) 51,153.97	27,077.33 27,077.32 4,009.00 13,308.80 5,142.39 3,840.00 10,764.00
		91,218.84
		21,796.49 (37.47) 25,343.48 (753.71) 2,411.55 124.45
		48,884.79
		48,884.79
		(3,993.22) 35,418.12 -
		31,424.90

These notes should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 9

WOFFLE PTY LTD

A.B.N 13 140 249 261

DIRECTORS' DECLARATION

The directors have determined that the company is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies described in Note 1 to the financial statements.

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 1 to 9, present fairly the Company's financial position as at 30 June 2017 and its performance for the year ended on that date in accordance with the accounting policies described in Note 2 to the financial statements; and

2. In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

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

Director:

---

Mr Christopher Carnie

Director:

---

Mr Nathan Michael Pittman

Dated this day of

Page 10

COMPILATION REPORT TO WOFFLE PTY LTD A.B.N 13 140 249 261

We have compiled the accompanying special purpose financial statements of WOFFLE PTY LTD which comprise the balance sheet as at 30 June 2017, and the income statement for the year then ended, a summary of significant accounting policies and other explanatory notes.The specific purpose for which the special purpose financial statements have been prepared is set out in the notes to the accounts.

The responsibility of directors

The directors of WOFFLE PTY LTD are solely responsible for the information contained in the special purpose financial statements, the reliability, accuracy and completeness of the information and for the determination that the basis of accounting used is appropriate to meet their needs and for the purpose that the financial statements were prepared.

Our responsibility

On the basis of the information provided by the directors, we have compiled the accompanying special purpose financial statements in accordance with the basis of accounting as described in the notes to the financial statements and APES 315: Compilation of Financial Information.

We have applied professional expertise in accounting and financial reporting to compile these financial statements in accordance with the basis of accounting described in the notes to the financial statements.We have complied with the relevant ethical requirements of APES 110 Code of Ethics for Professional Accountants.

Assurance Disclaimer

Since a compilation engagement is not an assurance engagement, we are not required to verify the reliability, accuracy or completeness of the information provided to us by management to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on these financial statements.

The special purpose financial statements were compiled exclusively for the benefit of the directors who are responsible for the reliability, accuracy and completeness of the information used to compile them. We do not accept responsibility to any other person for the contents of the special purpose financial statements.

Name of Firm: Mair Mansfield & Co.

Name of Partner:

_________ Director

Address: Suite 211 18-20 Dale Street BROOKVALE NSW 2100

Dated this day of

Page 11

WOFFLE PTY LTD A.B.N 13 140 249 261

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 2017

	2017 $	2016 $
SALES Sales LESS: COST OF GOODS SOLD Purchases Hardware Depreciation GROSS PROFIT FROM TRADING EXPENSES Accountancy Fees Advertising Assets <$20,000 Bank Charges Contract Work Computer Expenses Depreciation Entertainment Expenses Hire Purchase Charges Insurance Interest Paid Legal Costs Motor Vehicle Expenses Postage Printing & Stationery Office Expenses Superannuation Contributions Telephone Travelling Expenses Wages Profit before income tax	840,950.14 452,630.69 - 452,630.69 388,319.45 3,394.18 2,827.89 20,078.14 6,205.42 311.38 7,083.58 6,100.00 1,570.82 483.28 1,444.94 16.99 2,740.75 8,761.87 371.10 483.82 122.33 21,763.20 3,391.17 1,686.89 172,012.00 260,849.75 127,469.70	748,577.37
		442,283.89 11,908.00
		454,191.89
		294,385.48
		3,145.40 3,667.30 16,187.62 4,741.13 2,393.81 - 8,172.00 3,930.68 1,837.28 - 18.06 373.64 8,500.93 145.12 273.67 44.33 15,072.00 3,227.52 3,339.30 171,984.00
		247,053.79
		47,331.69

The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report of Mair Mansfield & Co..

Page 12