COMPLII FINTECH SOLUTIONS LTD — Interim / Quarterly Report 2003

Apr 15, 2003

Gowings Retail Limited ACN 098 238 585

16 April 2003

Dear Shareholder.

With the completion of the half-year ending 2 February 2003, Gowings Retail Limited has reported a net profit after tax of \$85,000, compared with \$823,000 in the previous corresponding period.

The previous corresponding financial period was for the three months from 5 November 2001 to 31 January 2002 and therefore comparative amounts disclosed in the half yearly report are not strictly comparable.

The result for the half-year is disappointing; it was impacted by a number of factors which have been previously communicated.

Factors which impacted upon the result:

• 1. Christmas trade was much slower than expected, particularly after we had experienced a very strona run up to Christmas in November 2002. We believe Christmas trade was impacted by consumer uncertainty, uncertainty which was initiated by the Bali terrorist attack and compounded by the worsening drought, the Sydney bushfires and the deteriorating global security outlook bought on as the world girded itself for war on the Middle East. Rising petrol prices also took the toll on a tighter consumer purse.
• 1. Post Christmas trade has continued to be impacted by the factors outlined above and more particularly, by a significant drop off in international tourists visiting Sydney, as a result of the lead up to the war in Iraq, which has had a negative effect on tradina in our CBD stores.
• 1. Our second regional store was opened in early December last year, on the ground floor at Westfield Parramatta. The store was opened both on time and under budget. Early Christmas trade was promisina: however, post Christmas trade has been very poor, with the store trading significantly below a conservative budget.

Action taken:

In light of the poor performance for the six months to the end of January 2003, the continuing environment of uncertainty that is impacting on the company's sales and more particularly the poor performance of the new Parramatta store, management has initiated a company wide strategic review from which a detailed plan of action has been developed, this plan has been endorsed by the board, the essential elements outlined below;

1. Cost Control:

All business costs are to be put to the test of risk reward and cost benefit analysis. Management have set a target to reduce general business overhead costs by 10%.

2. Working capital management:

A target has been set to reduce working capital requirements for the group by between 1 and 2 million dollars. This will be achieved by a combination of range rationalisation, improved process controls over the ordering and re-ordering of product lines combined with more timely out of stock reporting from the recently upgraded inventory IT system.

3. More targeted sales and marketing;

We have initiated a full review of all the companies marketing activities, including commencing customer focus group research. The aim of the review combined with the research is to ensure that every dollar of the marketing budget is well spent and to gain a better understanding of what are the key drivers that will increase traffic in our regional stores.

4. Increase Parramatta store sales:

To tackle the poor performance of the Parramatta store we have firstly enlisted a store specific marketing program.

Outlook:

We previously advised that the full year EBIT was likely to be \$700,000 to \$1,000,000. However, since January 2003, we have continued to experience challenging trading conditions, and we expect this to continue in light of current world events. Given that the profit for the second half clearly depends on winter trading conditions in the months of May, June and July, it is very difficult to predict the likely performance for the full year, other than to say that unless there is a significant turnaround in the general retail environment and we have a very cold winter, that the performance for the year will be significantly lower than previously advised.

The Directors have not declared an interim dividend for the period ended 2 February 2003.

Yours faithfully,

Peter Sillick Managing Director

$Rules 41.43$

Appendix 4B

Half yearly/preliminary final report

Introduced 30/6/2002

Name of entity Gowings Retail Limited ABN or equivalent company Half yearly Preliminary Half year/financial year ended ('current period') reference final (tick) $(iick)$ 098 238 585 2 February 2003 For announcement to the market \$A'000 Extracts from this report for announcement to the market (see note 1) Revenues from ordinary activities (item $I$ , 1) up/down 68% $t_{\Omega}$ 17.948 Profit (loss) from ordinary activities after tax 90% 85 ep/down to attributable to members (item 1.22) Profit (loss) from extraordinary items after tax gain (loss) attributable to members (item $2.5(d)$ ) οĔ Net profit (loss) for the period attributable to members ap/down 90% 85 $10¹$ $(item I.11)$ Dividends (distributions) Franked amount per Amount per security security Final dividend (Preliminary final report only - item Nil e Nil é $15.4)$ Interim dividend (Half yearly report only - item 15.6) Previous corresponding period (Preliminary final report - item 15.5; half yearly report - item 15.7) Nile Nil $\epsilon$ ⁺Record date for determining entitlements to the dividend. (in the case of a trust, distribution) (see item $15.2$ ) Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market: Please note that current period represents the 26 week period to 2 February 2003 and the previous corresponding period being reported is for the 12 weeks ending 27 January 2002. Refer to the Managing Director's attached statement for further discussion.

If this is a half yearly report it is to be read in conjunction with the most recent annual financial report.

⁺ See chapter 19 for defined terms.

		Current period - \$A'000	Previous corresponding period - \$A'000
1.1	Revenues from ordinary activities (see items 1.23 $-1.25$	17,948	10,709
1.2	Expenses from ordinary activities (see items 1.26 & 1.27)	17,822	9,554
1.3	Borrowing costs	3	23
1.4	Share of net profits (losses) of associates and joint venture entities (see item 16.7)
1.5	Profit (loss) from ordinary activities before tax	123	1,132
1.6	Income tax on ordinary activities (see note $4$ )	34	309
1.7	Profit (loss) from ordinary activities after tax	89	823
1.8	Profit (loss) from extraordinary items after tax (see item $2.5$ )
1.9	Net profit (loss)	89	823
1.10	Net profit (loss) attributable to outside $+$ equity interests	4	6
1.11	Net profit (loss) for the period attributable to members	85	817
	Non-owner transaction changes in equity
1.12	Increase (decrease) in revaluation reserves
1.13	Net exchange differences recognised in equity
1.14	Other revenue, expense and initial adjustments recognised directly in equity (attach details)
1.15	Initial adjustments from UIG transitional provisions
1.16	Total transactions and adjustments recognised directly in equity (items 1.12 to 1.15)
1.17	Total changes in equity not resulting from transactions with owners as owners

Condensed consolidated statement of financial performance

Earnings per security (EPS)	Current period	Previous corresponding period
Basic EPS 1.18	$0.004\ell$	$0.041\epsilon$
Diluted EPS 1.19	$0.004\ell$	$0.041\epsilon$

⁺ See chapter 19 for defined terms.

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current \$A'000	period -	Previous corresponding period -
				\$A'000
1.20	Profit (loss) from ordinary activities after tax (item I.7)		89	823
1.21	Less (plus) outside $+$ equity interests		Δ
1.22	Profit (loss) from ordinary activities after		85	817
	tax, attributable to members

Revenue and expenses from ordinary activities

(see note $15$ )

		period Current \$A'000	Previous corresponding period - \$A'000
1.23	Revenue from sales or services Retail Sales Rental income	17,380 378	10,326 191
1.24	Interest revenue	62	69
1.25	Other relevant revenue	128	123
1.26	Details of relevant expenses
	Cost of Goods Sold	9,663	5,740
	Staff expense	3,834	1,754
	Rental expense	2,292	1,179
	Admin & Overhead	2,036 17,825	904 9,577
1.27	Depreciation and amortisation excluding amortisation of intangibles (see item 2.3)	233	111
	Capitalised outlays
1.28	Interest costs capitalised in asset values
1.29	Outlays capitalised in intangibles (unless arising from an $^+$ acquisition of a business)

Consolidated retained profits

		Current period - \$A'000	Previous corresponding period - \$A'000
1.30	Retained profits (accumulated losses) at the beginning of the financial period	.119
	Net profit (loss) attributable to members (item ) LID)	85	817

⁺ See chapter 19 for defined terms.

1.32	Net transfers from (to) reserves (details if material )
1.33	Net effect of changes in accounting policies
1.34	Dividends and other equity distributions paid or payable	606
1.35	Retained profits (accumulated losses) at end of financial period	598	817

Intangible and extraordinary items

		Consolidated - current period
		Before tax \$A'000 (a)	Related tax \$A'000 (b)	Related outside $+$ equity interests \$A'000	Amount (after tax) attributable to members \$A'000 (d)
				(c)
2.1	Amortisation of goodwill	124			60
$2.2^{\circ}$	Amortisation of other intangibles
2.3	Total amortisation of intangibles	124			60
2.4	Extraordinary items (details)
$2.5^{\circ}$	Total extraordinary items

Comparison of half year profits

(Preliminary final report only)

• $3.1$ Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the 1st half year (item 1.22 in the half yearly report)
• $3.2$ Consolidated profit (loss) from ordinary activities after tax attributable to members for the 2nd half year

Current year - \$A'000	Previous year - \$A'000

⁺ See chapter 19 for defined terms.

	Condensed consolidated statement of financial position	оf end At current period \$A'000	As shown in last annual report \$A'000	As in last half yearly report \$A'000
	Current assets
4.1	Cash	2,201	3,372	6,685
4.2	Receivables	383	442	417
4.3	Investments
4.4	Inventories	12,757	11,386	11,044
4.5	Tax assets
4.6	Other (provide details if material)	457	435	509
4.7	Total current assets	15,798	15,636	18,655
	Non-current assets
4.8	Receivables	717	745	749
4.9	Investments (equity accounted)
4.10	Other investments
4.11	Inventories
4.12	Exploration and evaluation expenditure capitalised (see para .71 of AASB 1022)
4.13	Development properties $\int$ mining entities)
4.14	Other property, plant and equipment (net)	4,296	3,484	3,074
4.15	Intangibles (net)	4,604	4,727	4,830
4.16 4.17	Tax assets Other (provide details if material)	93	88	152
		81	87
4.18	Total non-current assets	9,791	9,131	8,805
4.19	Total assets	25,589	24,766	27,460
	Current liabilities
4.20	Payables	5,026	3,756	5,656
4.21	Interest bearing liabilities	10	54	1,268
4.22	Tax liabilities	43	274	265
4.23	Provisions exc. tax liabilities	459	348	325
4.24	Other (provide details if material)
4.25	Total current liabilities	5,538	4,432	7,514
	Non-current liabilities
4.26	Payables
4.27	Interest bearing liabilities Tax liabilities	15	17
4.28 4.29	Provisions exc. tax liabilities	57	61	89
4.30	Other (provide details if material)	111	99	107
4.31	Total non-current liabilities	183	177	196

• See chapter 19 for defined terms.

4.32	Total liabilities	5,721	4,609	7,710
4.33	Net assets	19,868	20,157	19,750
4.34 4.35	Equity Capital/contributed equity Reserves	19209	18,977	18,857
4.36	Retained profits (accumulated losses)	598	1,119	823
4.37 4.38	Equity attributable to members of the parent entity Outside $+$ equity interests in controlled	19,807	20,096	19,680
4.39	entities Total equity	61 19,868	61 20,157	70 19,750
4.40	Preference capital included as part of 4.37	nil	nil	nil

Condensed consolidated statement of financial position continued

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenditure capitalised

(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

		Current period \$A'000	Previous corresponding period -
			\$A'000
5.1	Opening balance
5.2	Expenditure incurred during current period
5.3	Expenditure written off during current period
5.4	Acquisitions, disposals, revaluation increments, etc.
5.5	Expenditure transferred to Development Properties
5.6	Closing balance as shown in the consolidated balance sheet ( item 4.12 )

Development properties

(To be completed only by entities with mining interests if amounts are material)

		Current period \$A'000	Previous
			corresponding
			period - \$A'000
-6.1	Opening balance
-6.2	Expenditure incurred during current period	-

• See chapter 19 for defined terms.

• 6.3 Expenditure transferred from exploration and evaluation

• $6.4$ Expenditure written off during current period
• 6.5 Acquisitions, disposals, revaluation increments, etc.
• 6.6 Expenditure transferred to mine properties
• $6.7$ Closing balance as shown in the consolidated balance sheet (item $4.13$ )

Condensed consolidated statement of cash flows

		Current period \$A'000	Previous corresponding period $-$ \$A'000
	Cash flows related to operating activities
7.1	Receipts from customers	19,791	11,552
7.2	Payments to suppliers and employees	(19,311)	(11,265)
7.3	Dividends received from associates
7.4	Other dividends received
7.5	Interest and other items of similar nature
	received	55.	66
7.6	Interest and other costs of finance paid	(3)	(23)
7.7	Income taxes paid	(274)	(2)
7.8	Other (provide details if material)
7.9	Net operating cash flows	258	328
	Cash flows related to investing activities
7.10	Payment for purchases of property, plant and equipment	(1,035)	(204)
7.11	Proceeds from sale of property, plant and equipment
7.12	Payment for purchases of equity investments
7.13	Proceeds from sale of equity investments
7.14	Loans to other entities
7.15	Loans repaid by other entities	30
7.16	Other (provide details if material)
7.17	Net investing cash flows	(1,005)	(204)
	Cash flows related to financing activities
7.18	Proceeds from issues of $+$ securities (shares,
	options, etc.)		6,293
7.19	Proceeds from borrowings
7.20	Repayment of borrowings	(4)
7.21	Dividends paid	(377)
7.22	Other (provide details if material)

⁺ See chapter 19 for defined terms.

7.23	Net financing cash flows	(381)	6,293
7.24 7.25	Net increase (decrease) in cash held Cash at beginning of period	(1,128)	6,417
7.26	(see Reconciliation of cash) Exchange rate adjustments to item 7.25.	3,323
7.27	Cash at end of period (see Reconciliation of cash)	2,195	6,417

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. (If an amount is quantified, show comparative amount. $N/A$

Reconciliation of cash

	Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current period \$A'000	Previous corresponding period - \$A'000
8.1	Cash on hand and at bank	1,195	46
8.2	Deposits at call	1,006	6,639
8.3	Bank overdraft	(6)	(268)
8.4	Other (provide details)
8.5	Total cash at end of period (item 7.27)	2,195	6,417

Other notes to the condensed financial statements

Ratios		Current period	Previous corresponding period
9.1	Profit before tax / revenue Consolidated profit (loss) from ordinary activities before tax ( item $1.5$ ) as a percentage of revenue (item 1.1)	$0.7\%$	10.6%
9.2	Profit after tax $/$ + equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members ( item 1.11 ) as a percentage of equity (similarly attributable) at the end of the period (item 4.37	$0.4\%$	4.2%

⁺ See chapter 19 for defined terms.

Earnings per security (EPS)

1. Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share are as follows.

	Current period	Previous corresponding period
Basic EPS	0.60c	$0.04\epsilon$
Diluted EPS	0.60c	N/A
Weighted average number of ordinary shares used as a denominator in calculating basic earnings per share	20,341,698	20,212,501
Weighted average number of ordinary shares and potential ordinary shares used as a denominator in calculating basic earnings per share	20,341,698	20,212,501

NTA backing (see note 7)	Current period	Previous corresponding period
11.1 Net tangible asset backing per $+$ ordinary security	\$0.74	\$0.74

Discontinuing Operations

(Entities must report a description of any significant activities or events relating to discontinuing operations in accordance with paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they have disclosed in their accounts in accordance with AASB 1042: Discontinuing Operations (see note 17).)

12.1	Discontinuing Operations
Nil

Control gained over entities having material effect

13.1 Name of entity (or group of entities)

$\overline{\text{Nil}}$

13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was ⁺acquired

^13.3 Date from which such profit has been calculated

⁺ See chapter 19 for defined terms.

13.4 Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

Loss of control of entities having material effect

• 14.1 Name of entity (or group of entities)
• 14.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control

Nil

• Date to which the profit (loss) in item 14.2 has been calculated $14.3$
• 14.4 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
• Contribution to consolidated profit (loss) from ordinary $14.5$ activities and extraordinary items from sale of interest leading to loss of control

Dividends (in the case of a trust, distributions)

• 15.1 Date the dividend (distribution) is payable
• $15.2$ ⁺Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if $+$ securities are not $+$ CHESS approved. or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if ⁺securities are ⁺CHESS approved)
• 15.3 If it is a final dividend, has it been declared? (Preliminary final report only)

Amount per security

		Amount per security	Franked amount per security at % tax (see note 4	Amount per security of foreign source dividend
15.4	(Preliminary final report only) Final dividend: Current year	-¢	- $\phi$	- ¢
15.5	Previous year	$3.0 \notin$	$3.0 \, \epsilon$	- ¢
15.6	(Half yearly and preliminary final reports) Interim dividend: Current year	- ¢	- ¢	- ¢
15.7	Previous year	- C	- C	- ¢

$+$ See chapter 19 for defined terms.

Total dividend (distribution) per security (interim plus final)

(Preliminary final report only)

15.8 ⁺Ordinary securities

15.9 Preference ⁺securities

Current year	Previous year
e	É
e	e

Half yearly report - interim dividend (distribution) on all securities or Preliminary final report - final dividend (distribution) on all securities

		Current period \$A'000	Previous corresponding period - \$A'000
15.10	$+$ Ordinary securities (each class separately)
15.11	Preference *securities (each class separately)
15.12	Other equity instruments (each class separately)
15.13	Total

The $⁺dividend$ or distribution plans shown below are in operation. Dividend Reinvestment Plan (DRP)

The last date(s) for receipt of election notices for the ⁺dividend or distribution plans

Any other disclosures in relation to dividends (distributions). (For half yearly reports, provide details in accordance with paragraph 7.5(d) of AASB 1029 Interim Financial Reporting)

Details of aggregate share of profits (losses) of associates and joint venture entities

entities':	Group's share of associates' and joint venture	Current period \$A'000	Previous corresponding period - \$A'000
16.1	Profit (loss) from ordinary activities before tax
16.2	Income tax on ordinary activities
16.3	Profit (loss) from ordinary activities after tax
16.4	Extraordinary items net of tax
16.5	Net profit (loss)

⁺ See chapter 19 for defined terms.

	16.6 Adjustments
16.7	Share of net profit (loss) of associates and joint venture entities

Material interests in entities which are not controlled entities

The economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired or disposed of during either the current or previous corresponding period, indicate date of acquisition ("from dd/mm/yy") or disposal ("to dd/mm/yy").)

Name of entity		Percentage of ownership interest held at end of period or date of disposal		Contribution to net profit (loss) (item 1.9)
17.1	Equity accounted associates and joint venture entities	Current period	Previous corresponding period	Current period \$A'000	Previous corresponding period - \$A'000
17.2	Total
17.3	Other material interests
17.4	Total

Issued and quoted securities at end of current period

(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

	Category of $+$ securities	Total number	Number quoted	Issue price per security (see- note (4) (cents)	Amount paid up per security (see note $14)$ (cents)
18.1	Preference + securities (description)
18.2	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions
18.3	+ Ordinary securities	20,600,093	20,600,093

⁺ See chapter 19 for defined terms.

18.4	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks	388,695	388,695
18.5	+ Convertible debt securities (description and conversion factor)
18.6	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted
18.7	Options (description and conversion factor)			Exercise price	Expiry date (fany)
		714,000		\$1.00	30/11/06
18.8	Issued during current period
18.9	Exercised during current period
18.10	Expired during current period	233,000
18.11	Debentures (description)
18.12	Changes during current period (a) Increases through issues
	(b) Decreases through securities matured, converted
18.13	Unsecured notes (description)
18.14	Changes during current period
	(a) Increases through issues
	(b) Decreases through securities matured, converted

Segment reporting

(Information on the business and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Segment Reporting and for half year reports, AASB 1029: Interim Financial Reporting. Because entities employ different structures a pro forma cannot be provided. Segment information in the layout employed in the entity's $\pm$ accounts should be reported separately and attached to this report.)

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029: Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the Corporations Act) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report.)

⁺ See chapter 19 for defined terms.

Basis of financial report preparation

• $19.1$ If this report is a half yearly report, it is a general purpose financial report prepared in accordance with the listing rules and AASB 1029: Interim Financial Reporting. It should be read in conjunction with the last ⁺annual report and any announcements to the market made by the entity during the period. The financial statements in this report are "condensed financial statements" as defined in AASB 1029: Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. [Delete if preliminary final report.]
• 19.2 Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

Refer to attached statement from the Managing Director

19.3 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

Nil

19.4 Franking credits available and prospects for paying fully or partly franked dividends for at least the next vear.

The company has sufficient franking credits at 30% to fully frank all proposed dividends

19.5 Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes and differences in the half yearly report in accordance with AASB 1029: Interim Financial Reporting. Disclose changes in accounting policies in the preliminary final report in accordance with AASB 1001: Accounting Policies-Disclosure).

$N/A$

$19.6$ Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous +annual reports if those revisions have a material effect in this half year.

$N/A$

19.7Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last⁺ annual report.

$+$ See chapter 19 for defined terms.

$N/A$

Additional disclosure for trusts

• $20.1$ Number of units held by the management company or responsible entity or their related parties.
• A statement of the fees and commissions 20.2 payable to the management company or responsible entity.

Identify:

• initial service charges $\bullet$
• management fees ٠
• other fees

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Approximate date the "annual report will be available

Compliance statement

$\mathbbmss{1}$ This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX (see note 12).

Identify other standards used

Nil

• $\overline{2}$ This report, and the "accounts upon which the report is based (if separate), use the same accounting policies.
• $\mathbf{3}$ This report does give a true and fair view of the matters disclosed (see note 2).

⁺ See chapter 19 for defined terms.

$\overline{4}$ This report is based on $\text{}$ accounts to which one of the following applies. (Tick one) The ^*accounts have been The ⁺accounts have been $\checkmark$ П audited. subject to review. The ⁺accounts are in the The ⁺accounts have not* yet П П process of being audited or been audited or reviewed. subject to review.

• 5 The audit review by the auditor is attached. (Half yearly report only - the audit report or review by the auditor must be attached to this report if this report is to satisfy the requirements of the Corporations Act.)
• $\overline{6}$ The entity has a formally constituted audit committee.

Sign here: Peter Sillick Date: 16 April 2003 Director

Print name: Peter Sillick

⁺ See chapter 19 for defined terms.

Notes

• For announcement to the market The percentage changes referred to in this section are the $\mathbb{I}$ . percentage changes calculated by comparing the current period's figures with those for the previous corresponding period. Do not show percentage changes if the change is from profit to loss or loss to profit, but still show whether the change was up or down. If changes in accounting policies or procedures have had a material effect on reported figures, do not show either directional or percentage changes in profits. Explain the reason for the omissions in the note at the end of the announcement section. Entities are encouraged to attach notes or fuller explanations of any significant changes to any of the items in page 1. The area at the end of the announcement section can be used to provide a cross reference to any such attachment.
• $\overline{2}$ . True and fair view If this report does not give a true and fair view of a matter (for example, because compliance with an Accounting Standard is required) the entity must attach a note providing additional information and explanations to give a true and fair view.

$3¹$ Condensed consolidated statement of financial performance

• The definition of "revenue" and an explanation of "ordinary activities" are set Item $1.1$ out in AASB 1004: Revenue, and AASB 1018: Statement of Financial Performance.
• Item $1.6$ This item refers to the total tax attributable to the amount shown in item 1.5. Tax includes income tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eg. fringe benefits tax).
• $\overline{4}$ . Income tax If the amount provided for income tax in this report differs (or would differ but for compensatory items) by more than 15% from the amount of income tax prima facie payable on the profit before tax, the entity must explain in a note the major items responsible for the difference and their amounts. The rate of tax applicable to the franking amount per dividend should be inserted in the heading for the column "Franked amount per security at % $\text{tax}^n$ for items $15.4$ to $15.7$ .

$5.$ Condensed consolidated statement of financial position

Format The format of the consolidated statement of financial position should be followed as closely as possible. However, additional items may be added if greater clarity of exposition will be achieved, provided the disclosure still meets the requirements of AASB 1029: Interim Financial Reporting, and AASB 1040: Statement of Financial Position. Also, banking institutions, trusts and financial institutions may substitute a clear liquidity ranking for the Current/Non-Current classification.

Basis of revaluation If there has been a material revaluation of non-current assets (including investments) since the last ⁺annual report, the entity must describe the basis of revaluation adopted. The description must meet the requirements of AASB 1010: Accounting for the Revaluation of Non-Current Assets. If the entity has adopted a procedure of regular revaluation, the basis for which has been disclosed and has not changed, no additional disclosure is required.

1. Condensed consolidated statement of cash flows For definitions of "cash" and other terms used in this report see AASB 1026: Statement of Cash Flows. Entities should follow the form

⁺ See chapter 19 for defined terms.

as closely as possible, but variations are permitted if the directors (in the case of a trust, the management company) believe that this presentation is inappropriate. However, the presentation adopted must meet the requirements of $AASB$ 1026. $\pm$ Mining exploration entities may use the form of cash flow statement in Appendix 5B.

• Net tangible asset backing Net tangible assets are determined by deducting from total $7.$ tangible assets all claims on those assets ranking ahead of the $+$ ordinary securities (ie, all liabilities, preference shares, outside ⁺equity interests etc). ⁺Mining entities are not required to state a net tangible asset backing per $+$ ordinary security.
• $\mathbf{R}$ . Gain and loss of control over entities The gain or loss must be disclosed if it has a material effect on the "accounts. Details must include the contribution for each gain or loss that increased or decreased the entity's consolidated profit (loss) from ordinary activities and extraordinary items after tax by more than 5% compared to the previous corresponding period.
• 1. Rounding of figures This report anticipates that the information required is given to the nearest \$1,000. If an entity reports exact figures, the \$A'000 headings must be amended. If an entity qualifies under ASIC Class Order 98/0100 dated 10 July 1998, it may report to the nearest million dollars, or to the nearest \$100,000, and the \$A'000 headings must be amended.
• $10.$ Comparative figures Comparative figures are to be presented in accordance with AASB 1018 or AASB 1029 Interim Financial Reporting as appropriate and are the unadjusted figures from the latest annual or half year report as appropriate. However, if an adjustment has been made in accordance with an accounting standard or other reason or if there is a lack of comparability, a note explaining the position should be attached. For the statement of financial performance, AASB 1029 Interim Financial Reporting requires information on a year to date basis in addition to the current interim period. Normally an Appendix 4B to which AASB 1029 Interim Financial Reporting applies would be for the half year and consequently the information in the current period is also the year to date. If an Appendix 4B Half yearly version is produced for an additional interim period (eg because of a change of reporting period), the entity must provide the year to date information and comparatives required by AASB 1029 Interim Financial Reporting. This should be in the form of a multi-column version of the consolidated statement of financial performance as an attachment to the additional Appendix 4B.
• $11.$ Additional information An entity may disclose additional information about any matter, and must do so if the information is material to an understanding of the reports. The information may be an expansion of the material contained in this report, or contained in a note attached to the report. The requirement under the listing rules for an entity to complete this report does not prevent the entity issuing reports more frequently. Additional material lodged with the $+A$ SIC under the Corporations Act must also be given to ASX. For example, a director's report and declaration, if lodged with the ⁺ASIC, must be given to ASX.
• 1. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if one exists) must be complied with.
• 1. Corporations Act financial statements This report may be able to be used by an entity required to comply with the Corporations Act as part of its half-year financial statements if prepared in accordance with Australian Accounting Standards.

⁺ See chapter 19 for defined terms.

• $14.$ Issued and quoted securities. The issue price and amount paid up is not required in items 18.1 and 18.3 for fully paid securities.
• 15 Details of expenses AASB 1018 requires disclosure of expenses from ordinary activities according to either their nature or function. For foreign entities, there are similar requirements in other accounting standards accepted by ASX. $\overrightarrow{A}$ SB ED 105 clarifies that the disclosures required by AASB 1018 must be either all according to nature or all according to function. Entities must disclose details of expenses using the layout (by nature or function) employed in their $+$ accounts.

The information in lines 1.23 to 1.27 may be provided in an attachment to Appendix 4B.

Relevant Items AASB 1018 requires the separate disclosure of specific revenues and expenses which are not extraordinary but which are of a size, nature or incidence that disclosure is relevant in explaining the financial performance of the reporting entity. The term "relevance" is defined in $AASB$ 1018. There is an equivalent requirement in $AASB$ 1029: Interim Financial Reporting. For foreign entities, there are similar requirements in other accounting standards accepted by ASX.

16 Dollars If reporting is not in A\$, all references to \$A must be changed to the reporting currency. If reporting is not in thousands of dollars, all references to "000" must be changed to the reporting value.

17 Discontinuing operations

Half yearly report

All entities must provide the information required in paragraph 12 for half years beginning on or after 1 July 2001.

Preliminary final report

Entities must either provide a description of any significant activities or events relating to discontinuing operations equivalent to that required by paragraph 7.5 (g) of $AASB$ 1029: Interim Financial Reporting, or, the details of discontinuing operations they are required to disclose in their $^{\dagger}$ accounts in accordance with AASB 1042 Discontinuing Operations.

In any case the information may be provided as an attachment to this Appendix 4B.

Format 18

This form is a Word document but an entity can re-format the document into Excel or similar applications for submission to the Companies Announcements Office in ASX.

I

⁺ See chapter 19 for defined terms.

GOWINGS RETAIL LIMITED

DIRECTORS' REPORT

Your directors present their report on the consolidated entity consisting of Gowings Retail Limited and the entities it controlled at the end of, or during, the half-year ended 2 February 2003.

Directors

The names of each person serving as a Director, either during or since the end of the half-year, are set out below:

Mr J.E. Gowing Mr D Shaw Mr M.T. Alscher Mr P Sillick Mr M Faulkner

Review of Operations

Refer to the Managing Director's attached statement.

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

J.E. GOWING Director

Sydney 16 April 2003

GOWING RETAIL LIMITED

DIRECTORS' DECLARATION

The directors declare that the financial statements and notes in the form of Appendix 4B of the Australian Stock Exchange ("ASX") Listing Rules:

• $(a)$ comply with Accounting Standards, the Corporations Regulations and other mandatory professional reporting requirements; and
• $(b)$ give a true and fair view of the consolidated entity's financial position as at 2 February 2003 and of its performance, as represented by the results of its operations and its cash flows, for the halfyear ended on that date.

In the directors' opinion there are reasonable grounds to believe that Gowing Retail Limited 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 directors.

J.E. Gowing Director

Sydney 16 April 2003

GOWINGS RETAIL LIMITED ACN 098 238 585

INDEPENDENT REVIEW REPORT

To the Members of Gowings Retail Limited:

Scope

We have reviewed the financial report of Gowings Retail Limited in the form of Appendix 4B of the Australian Stock Exchange (ASX) Listing Rules for the half-year ended 2 February 2002, but excluding the following sections:

• (a) material factors affecting the revenues and the expenses of the economic entity for the current period:
• (b) compliance statement.

The financial report includes the financial statements of the consolidated entity comprising the disclosing entity and the entities it controlled at the end of the half-year or from time to time during the half-year. The disclosing entity's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia, statutory requirements and ASX Listing Rules as they relate to Appendix 4B, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and performance as represented by the results of its operations and its cash flows, and in order for the disclosing entity to meet its obligations to lodge the financial report with the Australian Securities and Investments Commission and the ASX.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of the entity's personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report, as defined in the scope section, of Gowings Retail Limited is not in accordance with:

• (a) the Corporations Act 2001, including:
• giving a true and fair view of the consolidated entity's financial position as at 2 February 2003 and of $(i)$ its performance for the half-year ended on that date; and
• (ii) complying with Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001: and
• (b) other mandatory professional reporting requirements in Australia and ASX Listing Rules as they relate to Appendix 4B.

HLB MANN JUDD (NSW Partnership) Chartered Accountants

Sydney 16 April 2003 SK PREEN Partner