RESULTS ANNOUNCEMENT FOR THE YEAR ENDED JUNE 30, 2017

COMMENTARY

CVC Limited (ASX: CVC) is pleased to report a net profit after tax attributable to shareholders of \$27.5 million. This represents a near 100% increase on the 2016 result of \$13.8 million. As a result, earnings per share have increased to 23 cents per share compared to 11.5 cents per share in 2016.

The result reflects a contribution from all investment segments. The results do not, however, reflect the increase in value of CVC's substantial property portfolio attributable largely to progress with planning outcomes and an increase in underlying market values during the year.

Importantly all major goals set for the financial year were achieved, including divestment of Green's Foods Holdings Pty Limited and Cellnet Group Limited (ASX: CLT), the ASX listing of Eildon Capital Limited, the launch of Add+Venture, progress of planning applications for property projects and increased participation in "balance sheet light" transactions.

After including dividends paid during the financial year of 20 cents per share, total shareholder returns for the year were 39.1% (2016: 4.7%).

The Directors today resolved to pay a fully franked final dividend of 8 cents per share payable on 6 September 2017.

Listed Investments

The total contribution to comprehensive income amounted to \$14.1 million (2016: \$11.4 million), which includes a profit on realised investments of \$18.2 million (2016: loss of \$0.4 million) and a reduction in reserves of \$4.1 million (2016: increase of \$11.8 million).

Significant contributions to total comprehensive income were generated from Lantern Hotel Group (ASX: LTN), Bionomics Limited (ASX: BNO), Mitchell Services Limited (ASX: MSV) and Afterpay Holdings Limited (ASX: AFY).

The listed portfolio objective is to identify investments which are considered either counter-cyclical or under-performing and from which there will be substantial value uplift over time. During the year CVC continued to make acquisitions in listed companies it considers to be undervalued.

Property

Total contribution to comprehensive income was \$7.3 million (2016: \$19.2 million) net of project specific borrowing costs of \$3.3 million. This included interest related income generated from the provision of mezzanine finance facilities of \$7.9 million

CVC Limited ABN 34 002 700 361 AFSL 239665

Level 37, 1 Macquarie Place Sydney NSW 2000 T 02 9087 8000 F 02 9087 8088 www.cvc.com.au

and profit recognised from the sale of a development site at Caboolture, Queensland of \$3.0 million.

Concurrent with the sale of the commercial development site at Caboolture, CVC entered into a development delivery agreement for the construction of the site, which is expected to be completed by March 2018.

Subsequent to year end CVC also entered into a sale agreement for a commercial site at Yarrabilba, Queensland. The sale of the site will settle following completion of construction in November 2017, at which time it is forecast to contribute approximately \$5.0 million to profits for the 2018 financial year.

CVC continues to progress the planning approvals in respect of Marsden Park North in New South Wales, East Bentleigh and Donnybrook in Victoria. Additionally, CVC continues to progress the repositioning and development of the Caboolture and Mooloolaba projects in Queensland. All projects provide long term development pipelines once planning outcomes have been achieved of retail, commercial and residential uses.

CVC also continues to pursue compensation from Masters Home Improvement Australia Pty Limited following the repudiation of the Agreement for Lease in relation to the Port Macquarie site by Masters on 30 June 2016.

Private Equity

The total contribution to comprehensive income was \$13.3 million (2016: \$4.3 million) including the results of equity accounted investments. During the year CVC sold its holding in Green's Foods Holdings Pty Limited for approximately \$24 million, generating a before tax profit of \$11.1 million.

During the year CVC acquired a 48% interest in South Pack Laboratories (Aust) Pty Limited, a nutraceutical contract packaging company, which contributed \$0.6 million. It is expected that South Pack will provide a significant contribution to profits in the foreseeable future.

CVC continues to focus on developing litigation funding investment opportunities. This endeavour contributed \$0.6 million during the year.

CVC made a number of smaller investments into earlier stage companies with a view to longer term value creation. CVC continues to seek investment opportunities in private companies, and expects that investment conditions may present more opportunities in the next 12 – 18 months.

Funds Management

The contribution to comprehensive income of this segment was \$0.8 million (2016: \$0.5 million).

On 24 February 2017 Eildon Capital Limited successfully completed a capital raising of \$10 million and listing on the ASX. This reduced CVC's ownership from

T 02 9087 8000 F 02 9087 8088 www.cvc.com.au

56.0% to 38.5% and resulted in the deconsolidation of Eildon Capital Limited's operations from the group.

CVC has launched a specialist early stage investment fund known as Add+Venture, which will seek to enhance our early stage deal flow. It is currently undertaking a capital raising for an Early Stage Venture Capital Limited Partnership that is focused on investing in companies at an early or expansion stage in their lifecycles which are utilising new technology or innovation to deliver their products and services.

Controlled Investees

During the year CVC sold 83% of its holding in Cellnet Group Limited (ASX: CLT) for \$7.1 million. In addition Cellnet provided a contribution to comprehensive income of \$1.5 million (2016: \$1.8 million) during the time that its operations were consolidated in the group.

Balance Sheet Strength

Following the payment of \$23.9 million in dividends during the financial year shareholders' equity remains stable at \$198.1 million. Cash reserves at balance date of \$41.7 million, an increase of \$20 million over the previous period, are available for investments into opportunities as they arise.

Capital Management

As previously stated the directors have resolved to pay a fully franked final dividend of 8 cents per share payable on 6 September 2017. CVC continues to focus on a more robust dividend framework recognising progress towards more reliable earnings streams and consistent growth in underlying net assets.

2018 OUTLOOK

CVC continues to develop investments and income streams that will contribute to annual earnings over future years. These include:

Successful ASX listing of Eildon Capital. As Eildon Capital grows it will contribute further investment returns, contribution to overhead and management and performance fees;
Expansion and refreshment of mezzanine and structured lending. The intention is to maintain an exposure of approximately \$50 million to this strategy with annual contribution targeted in excess of \$7.5 million;
Continued development and expansion of the property portfolio and pipeline, including a substantial unrealised increase in underlying value. Subsequent to year end two project stages have completed, realising approximately \$5 million in profitability. It is intended that further significant realisations will be achieved during the year;

CVC Limited ABN 34 002 700 361 AFSL 239665

Level 37, 1 Macquarie Place Sydney NSW 2000 T 02 9087 8000 F 02 9087 8088 www.cvc.com.au

Continued development of the private equity portfolio, including the acquisition of a 48% equity stake in nutraceutical contract packager South Pack Laboratories (Aust) Pty Limited and other smaller stakes in private companies;
Acquisition of initial stakes in a number of ASX listed companies, which will contribute to annual earnings through dividends and realisation of capital profits; and
Launch of the capital raising for the Add+Venture portfolio which will increase CVC's access to early stage opportunities, provide a contribution to overhead, and contribute to annual profitability through realisations.

Whilst it is not possible at this stage to meaningfully forecast profitability for the 2018 financial year, there are sufficient identifiable levels of income and investment realisation opportunities being pursued to provide confidence in another positive year.

Alexander Beard Managing Director 21 August 2017

Appendix 4E

Preliminary Final Report Results for announcement to the market

CVC Limited
ABN	Financial Year ended			Previous Financial Year ended
	('Reporting Period')				('Corresponding period')
34 002 700 361	30 June 2017			30 June 2016
Results
Income from continuing operations	up/down	31%	to	48,759,284
Income from discontinued operations		up/down	41%	to	46,864,823
Income from ordinary activities		up/down	36%	to	\$95,624,107
Profit after tax attributable to members	up/down	99%	to	\$27,501,354
Net profit for the period attributable to members		up/down	99%	to	\$27,501,354

Dividends (distributions)

	Amount per security	Franked amount per security
Final Dividend – 2017 (Payable 6 September 2017)	8 ¢	8 ¢
Interim Dividend – 2017 (Paid 8 March 2017)	5 ¢	5 ¢
Special Dividend – 2017 (Paid 14 December 2016)	10 ¢	10 ¢

Information on Dividends:

The directors have resolved to pay a final fully franked dividend in respect of the year ended 30 June 2017 of 8 cents per share payable on 6 September 2017.

A fully franked interim dividend in respect of the financial year ended 30 June 2017 of 5 cents per share was paid on 8 March 2017.

A fully franked special dividend in respect of the financial year ended 30 June 2017 of 10 cents per share was paid on 14 December 2016.

The Dividend Reinvestment Plan continues to be suspended and as such will not be in operation in relation to the payment of the dividend.

Ex-dividend date 24 August 2017 Record date for determining entitlements to the final dividend 25 August 2017 Payment Date 6 September 2017

24 August 2017
25 August 2017
6 September 2017

Net tangible asset per security

	Year ended 30 June 2017	Year ended 30 June 2016
Net assets per share	\$1.66	\$1.68
Net tangible assets ("NTA") per share	\$1.66	\$1.68

The preliminary final report is based on accounts that have been audited.

Commentary

Brief explanation of any of the figures reported above:

Please refer to the attached commentary for a detailed review.

FINANCIAL REPORT

For the year ended 30 June 2017

The financial report was authorised for issue by the Directors on 21 August 2017. The company has the power to amend and reissue the financial report.

ACN 002 700 361 AFSL 239665

DIRECTORS' REPORT

Your Directors present the Financial Report of CVC Limited (the "Company") and its controlled entities ("CVC"), for the year ended 30 June 2017 together with the Auditors' Report thereon.

DIRECTORS

The names of Directors who served at any time during or since the end of the financial year are John Douglas Read, Alexander Damien Harry Beard and Ian Houston Campbell. The names of Company Secretaries in office throughout the financial year and to the date of this report are Mr Alexander Damien Harry Beard and Mr John Andrew Hunter. Details of qualifications, experience and special responsibilities of Directors are as follows:

John Douglas Read (Chairman)

B.Sc. (Hons) (Cant.), M.B.A. (A.G.S.M.)

Fellow of the Australian Institute of Company Directors.

Board member since 1989.

Mr Read has over 30 years experience in the venture capital industry. He is a former Director of CSIRO and the Australian Institute for Commercialisation Limited.

During the past three years Mr Read has also served as Chairman of Patrys Limited, The Environmental Group Limited and the Central Coast Water Corporation.

Alexander Damien Harry Beard (Managing Director and Company Secretary)

B.Com. (Uni. of NSW)

Fellow of the Chartered Accountants Australia and New Zealand; Member of Australian Institute of Company Directors.

Board member since 2000 and Chief Executive Officer since 2001. Member of the audit committee.

Mr Beard has been employed by the manager of the Company since 1991.

During the past three years Mr Beard has also served as Chairman of Cellnet Group Limited and Director of the following other listed companies: US Residential Fund, Cellnet Group Limited, Villa World Limited, Grays Ecommerce Group Limited and Eildon Capital Limited.

Ian Houston Campbell (Non-Executive Director)

Fellow of the Chartered Accountants Australia and New Zealand; Member of Australian Institute of Company Directors; Chairman of the audit committee of the Company.

Mr Campbell is currently a Non-Executive Director of Kip McGrath Education Centres Limited (ASX: KME) and Redox Pty Limited. Mr Campbell's previous Non-Executive Director roles include Gloria Jeans Coffees International Pty Limited, Young Achievement Australia Limited and Green's Foods Holdings Pty Limited. Mr Campbell brings to CVC 30 years of experience as a former partner with Ernst and Young and predecessor firms, principally working with entrepreneurial companies in preparing them for growth, sale and the capital markets.

COMPANY SECRETARIES

John Andrew Hunter

B.Com. (ANU), M.B.A. (MGSM), MAppFin (MAFC) Member of the Chartered Accountants Australia and New Zealand.

In addition to being a Director of the Company, Alexander Damien Harry Beard is also a Company Secretary of the Company.

KEY MANAGEMENT PERSONNEL

The only key management personnel during the financial year was John Andrew Hunter who is the Chief Financial Officer of the Company.

		Directors' Meetings
	No of meetings	No of meetings
	attended	eligible to attend
John Douglas Read	4	4
Alexander Damien Harry Beard	4	4
Ian Houston Campbell	4	4

The Company has an audit committee. The number of meetings and the number of meetings attended by each of the Directors on the audit committee during the financial year were:

		Audit Committee Meetings
	No of meetings	No of meetings
	attended	eligible to attend
John Douglas Read	2	2
Alexander Damien Harry Beard	2	2
Ian Houston Campbell	2	2

(AND ITS CONTROLLED ENTITIES)

DIRECTORS' REPORT (CONTINUED)

DIRECTORS' AND KEY MANAGEMENT PERSONNEL'S INTERESTS

The relevant interest of each Director and Key Management Personnel in the share capital of the Company as at the date of this report is as follows:

Ordinary shares	Opening	Purchases	Sales	Closing
Mr J.D. Read	528,956	-	-	528,956
Mr A.D.H. Beard	1,381,136	-	-	1,381,136
Mr I.H. Campbell	50,000	-	-	50,000
Mr J.A. Hunter	-	-	-	-

OVERVIEW OF ACTIVITIES

The sections below provide details on the results, dividends, activities, operations, changes in state of affairs and expectations for the future.

DIVIDENDS

A final fully franked dividend in respect of the year ended 30 June 2017 of 8 cents per share was declared on 21 August 2017 to be paid on 6 September 2017 to those shareholders registered on 25 August 2017. An interim fully franked dividend of 5 cents per share amounting to \$5,976,640 was paid on 8 March 2017. A special dividend of 10 cents per share amounting to \$11,953,279 was paid on 14 December 2016.

A final fully franked dividend in respect of the year ended 30 June 2016 of 5 cents per share was declared on 30 August 2016 to be paid on 15 September 2016 to those shareholders registered on 5 September 2016. An interim fully franked dividend of 5 cents per share amounting to \$5,976,639 was paid on 8 March 2016.

PRINCIPAL ACTIVITIES

The principal activities of entities within CVC during the year were:

the provision of investment, development and venture capital;
property finance and development;
investment in listed entities; and
funds management.

CONSOLIDATED RESULTS

The financial performance for the 2017 financial year is as follows:

Net profit after tax of \$29.5 million (2016: \$15.1 million);
Earnings per share of 23 cents (2016: 12 cents);
Decrease in Net Tangible Assets per share of 2 cents (2016: increase of 13 cents), following dividends per share totalling 20 cents (2016: 8 cents) paid during the year; and
Net decrease in value of investments through reserves of \$6.6 million (2016: increase of \$13.1 million).

The consolidated profit for the year attributable to the members of the Company is calculated as follows:

	2017	2016
	\$	\$
Net profit after income tax	29,457,411	15,050,183
Non-controlling interests	(1,956,057) ─────────	(1,251,789) ─────────
Net profit after income tax attributable to members	27,501,354 ════════	13,798,394 ════════

DIRECTORS' REPORT (CONTINUED)

REVIEW OF OPERATIONS

Highlights for the year of the main operating segments are as follows:

		2017			2016
		\$			\$
	Net profit	Other		Net profit	Other
	after income	comp'sive		after	comp'sive
	tax	income	Total	income tax	income	Total
Listed investments	18,158,706	(4,090,974)	14,067,732	(457,728)	11,837,546	11,379,818
Private equity and venture capital	12,700,308	640,532	13,340,840	3,207,635	1,073,292	4,280,927
Property	7,312,198	-	7,312,198	19,164,948	-	19,164,948
Funds management	887,411	(84,115)	803,296	324,654	140,041	464,695
Controlled investees	1,478,407	-	1,478,407	1,798,937	-	1,798,937
Unallocated	(7,853,563)	-	(7,853,563)	(7,147,675)	-	(7,147,675)
Tax effect	(3,226,056) ────────	(3,030,664) ────────	(6,256,720) ────────	(1,840,588) ────────	- ────────	(1,840,588) ────────
	29,457,411 ═══════	(6,565,221) ═══════	22,892,190 ═══════	15,050,183 ═══════	13,050,879 ═══════	28,101,062 ═══════

Listed Investments:

The total contribution to comprehensive income amounted to \$14.1 million (2016: \$11.4 million), which includes both reduction in reserves of \$4.1 million (2016: increase of \$11.8 million) and profit on realised investments of \$18.2 million (2016: loss of \$0.4 million). During the year CVC continued to make acquisitions in listed companies it considers to be undervalued. The result for the year was directly attributed to positive results of a number of investments held during the year including:

Lantern Hotel Group of \$5.2 million;
Bionomics Limited of \$2.9 million;
Mitchell Services Limited of \$1.5 million; and
Afterpay Holdings Limited of \$1.0 million.

CVC's investment strategy is to be a long term investor in undervalued stocks. CVC impairs investments where there has been a significant reduction in share prices. The total impairment charges raised during the year amounted to \$0.4 million (2016: \$4.8 million).

Distributions received from various investments during the financial year amounted to \$2.9 million (2016: \$1.0 million).

Private Equity:

The total contribution to comprehensive income was \$13.3 million (2016: \$4.3 million) including the results of equity accounted investments. During the year CVC sold all its holdings in Green's Foods Holdings Pty Limited for approximately \$24 million, generating a before tax profit of \$11.1 million. In addition South Pack Laboratories (Aust) Pty Limited contributed \$0.6 million and litigation funding investment opportunities contributed \$0.6 million.

Property:

Subsequent to year end CVC also entered into a sale agreement for a commercial site at Yarrabilba, Queensland. The sale of the site will settle following completion of construction in November 2017, at which time it is forecast to contribute \$5.0 million to CVC's profits for the 2018 financial year.

DIRECTORS' REPORT (CONTINUED)

REVIEW OF OPERATIONS (CONTINUED)

Property (continued):

Following the announcement by Woolworths Limited in January 2016 regarding its exit and sale of its Home Improvement businesses, Masters Home Improvement Australia Pty Limited repudiated the Agreement for Lease in relation to the Port Macquarie site on 30 June 2016. Negotiations have failed to produce a satisfactory outcome for CVC and accordingly CVC continues to seek compensation via a court process.

Funds Management:

The contribution to comprehensive income of this segment was \$0.8 million (2016: \$0.5 million).

On 24 February 2017 Eildon Capital Limited successfully completed a capital raising of \$10 million. This has the effect of reducing CVC's ownership from 56.0% to 38.5% and resulted in the deconsolidation of Eildon Capital Limited's operations from the group.

CVC is launching a specialist early stage investment fund to be known as Add+Venture, which will seek to enhance our early stage deal flow.

Controlled investees

Cellnet Group Limited (ASX: CLT) provided a contribution to comprehensive income of \$1.5 million (2016: \$1.8 million) for the period. On 22 December 2016 CVC sold 83% of its holding in Cellnet Group Limited for a consideration of \$7,057,568.

STATE OF AFFAIRS

There were no significant changes in the state of affairs of the Company that occurred during the year not otherwise disclosed in this report or the financial statements.

LIKELY DEVELOPMENTS

As explained in previous reports, the total level of profit for any period, notwithstanding the recurrent earnings, is largely determined by the timing of the realisation of investments that result in capital gains. The Company believes the strong financial position and continual evaluation of investment opportunities by its management team will enable the identification and execution of suitable investment opportunities during the course of the coming year.

ENVIRONMENTAL REGULATION

CVC's operations are not subject to environmental regulations.

EVENTS SUBSEQUENT TO BALANCE DATE

Subsequent to year end CVC also entered into a sale agreement for a commercial site at Yarrabilba, Queensland. The sale of the site will settle following completion of construction in November 2017, at which time it is forecast to contribute \$5.0 million to CVC's profits for the 2018 financial year.

A final dividend in respect of the year ended 30 June 2017 of 8 cents per share was declared on 21 August 2017 to be paid on 6 September 2017 to those shareholders registered on 25 August 2017.

Other than as set out above, there are no other matters or circumstances that have arisen since the end of the financial year which significantly affected or may significantly affect the operations of CVC, the results of those operations or the state of affairs of CVC in future financial years.

SHARE OPTIONS

There were no options issued by the Company during the year or to the date of this report. See note 32.

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS

a) Indemnification

During and since the end of the financial period CVC has provided an indemnity and entered into an agreement to indemnify Directors and Company Secretaries for liabilities that may arise from their position, except where the liability arises out of conduct involving a lack of good faith.

b) Insurance Premiums

CVC has not, during the year or since the end of the financial year, paid or agreed to pay a premium for insuring any person who is or has been an auditor of the Company or a related body corporate for the costs or expenses of defending legal proceedings.

The Company has paid insurance premiums in respect of Directors' and Officers' liability and legal expense insurance for Directors and Officers of the Company.

In accordance with s. 300(9) of the Corporations Act 2001 further details have not been disclosed due to confidentiality provisions contained in the insurance contract.

DIRECTORS' REPORT (CONTINUED)

REMUNERATION REPORT (AUDITED)

This report outlines the remuneration arrangements in place for key management personnel of the Company and its 100% owned entities in accordance with the requirements of the Corporations Act 2001 and its regulations. For clarity it includes the remuneration received by Messrs Beard and Kaplan from Cellnet Group Limited and Messrs Beard, Kaplan and Read from Eildon Capital Limited, but excludes the remuneration of those key management personnel of Cellnet Group Limited and Eildon Capital Limited which are not considered to be key management personnel of CVC. This information has been audited as required by s. 308(3C) of the Corporations Act 2001. The remuneration report details the remuneration arrangements for key management personnel who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of CVC.

Remuneration philosophy

The performance of CVC depends upon its ability to attract and retain quality people. CVC is committed to developing a remuneration philosophy of paying sufficient competitive 'base' rewards to attract and retain high calibre management personnel and providing the opportunity to receive superior remuneration tied directly to the creation of value for shareholders.

Remuneration structure

In accordance with best practice corporate governance, the structure of Non-Executive Director and remuneration for all other key management personnel is separate and distinct.

Non-Executive Director's remuneration is solely in the form of fees and has been set by shareholders at a maximum aggregate amount of \$550,000, to be allocated amongst the Directors as they see fit. It has been set to balance the need to attract and retain Directors of the highest calibre at a cost that is acceptable to shareholders.

Key management personnel remuneration consists of: base salary, fees, superannuation contributions, short term performance discretionary bonuses and participation in the CVC Executive Long Term Incentive Plan.

The Company does not have a remuneration committee. The remuneration of the Managing Director, Mr Beard, is determined following discussion with the Non-Executive Directors. The remuneration of key management personnel other than Mr Beard are determined following discussion with the Board of CVC.

Short term discretionary performance bonuses permit CVC to reward individuals for superior personal performance or contribution towards components of CVC's performance for which they have direct responsibility and are determined at the end of the financial year.

The objectives of the CVC Executive Long Term Incentive Plan are to directly align the opportunity to achieve superior employment rewards with the wealth generated for shareholders whilst providing a mechanism to retain key employees over the longer term. In general terms, under the plan:

key employees are invited by the Directors to acquire shares in the Company subject to certain conditions;
the conditions specify performance hurdles and time periods in which they are required to be achieved;
all shares issued under the plan cover a three year period and require that the total return to shareholders over the three year period exceeds the rate of growth over the same period for the S&P/ASX Small Ordinaries Accumulation Index;
shares are issued at market value and the Company provides a loan to the participant to cover the cost of the shares;
interest is charged on the loan equivalent to dividends paid on the shares;
the shares are restricted and cannot be dealt with by the participant during the period;
shares are forfeited and the loans are cancelled if the performance hurdles have not been met or the share price at the end of the period is below the issue price;
if shares are not forfeited, at the end of the period the participant is required to repay the loan, the restrictions on the shares are removed and the shares are taken out of the plan; and
a maximum of 5 million shares can be issued under the plan.

There are currently no shares issued under the CVC Executive Long Term Incentive Plan.

Individual remuneration disclosures:

The following table provides details of the remuneration expense of the Company and its 100% owned entities recognised for the group's key management personnel for the current and previous financial year measured in accordance with the requirements of the accounting standard.

(AND ITS CONTROLLED ENTITIES)

DIRECTORS' REPORT (CONTINUED)

REMUNERATION REPORT (AUDITED) (CONTINUTED)

Remuneration of key management personnel (continued):

Remuneration of key management personnel for the year ended 30 June 2017

		Short-term employee
		benefits		Post –
			STI	employ't		Share
		Base Salary	Bonus	benefits		based
		Fees	(b)	Super'n	Other	payment	Total	Base %
		\$	\$	\$	\$	\$	\$	(a)
Directors
ADH Beard	2017	405,891	500,000	35,000	11,894	-	952,785	48%
(Managing Director)	2016	355,093	300,000	30,000	31,210	-	716,303	58%
JD Read (c)	2017	54,795	-	32,931	-	-	87,726	100%
(Non-Executive Director)	2016	54,795	-	20,205	-	-	75,000	100%
IH Campbell
(Non-Executive Director)	2017	68,493	-	6,507	-	-	75,000	100%
	2016	54,795 ──────	- ──────	5,205 ──────	- ──────	- ──────	60,000 ──────	100%
	2017	529,179	500,000	74,438	11,894	-	1,115,511
	2016	464,683 ──────	300,000 ──────	55,410 ──────	31,210 ──────	- ──────	851,303 ──────
Other Key Management Personnel
JA Hunter	2017	345,000	300,000	30,000	-	-	675,000	56%
	2016	290,000	200,000	27,550	-	-	517,550	61%
EG Kaplan (d)	2017	-	-	-	-	-	-	-
	2016	100,000 ──────	- ──────	20,833 ──────	10,266 ──────	- ──────	131,099 ──────	100%
	2017	345,000	300,000	30,000	-	-	675,000
	2016	390,000 ──────	200,000 ──────	48,383 ──────	10,266 ──────	- ──────	648,649 ──────
	2017	874,179 ═══════	800,000 ═══════	104,438 ═══════	11,894 ═══════	- ═══════	1,790,511 ═══════
	2016	854,683 ═══════	500,000 ═══════	103,793 ═══════	41,476 ═══════	- ═══════	1,499,952 ═══════

Notes:

(a) Base % reflects the amount of base level remuneration that is not dependent on individual or CVC performance.

(b) The Short Term Incentive Bonus represents discretionary bonuses as determined by the Directors of CVC, based on their performance during the year.

(d) Elliott Kaplan ceased to be considered to be a member of the key management personnel on 23 November 2015 when he retired as Managing Director of Eildon Capital Limited.

DIRECTORS' REPORT (CONTINUED)

REMUNERATION REPORT (AUDITED) (CONTINUTED)

Executive contractual arrangements

It is CVC's policy that service contracts for key management personnel are unlimited in term but capable of termination as per the relevant period of notice and that CVC retains the right to terminate the contract immediately, by making payment that is commensurate with pay in lieu of notice.

The service contract outlines the components of remuneration paid to the key management person but does not prescribe how remuneration levels are modified year to year. Remuneration levels are reviewed each year to take into account any change in the scope of the role performed by the key management personnel and any changes required to meet the principles of the remuneration policy.

Standard key management personnel termination payment provisions apply to all current members of the key management personnel, including the Managing Director. The standard key management personnel provisions are as follows:

Details	Notice Period	Payment in lieu of notice	Treatment of STI on termination	Treatment of LTI on termination
			Unvested awards	Unvested awards
Employer initiated termination	1 month	1 month	forfeited	forfeited
			Unvested awards	Unvested awards
Termination for serious misconduct	None	None	forfeited	forfeited
			Unvested awards	Unvested awards
Employee initiated termination	1 month	1 month	forfeited	forfeited

Consequences of performance on shareholder wealth

In considering CVC's performance and benefits for shareholder wealth, the Directors have regard to the following indicators in respect of the current financial year and previous financial years.

	2017	2016	2015	2014	2013
	\$	\$	\$	\$	\$
Net profit attributable to members of the parent entity Comprehensive income/(loss) attributable to members	27,501,354	13,798,394	18,323,405	25,383,574	9,290,136
of the parent entity	(6,546,240) ─────────	13,024,484 ─────────	(16,158,003) ─────────	11,858,356 ─────────	10,690,344 ─────────
Total comprehensive income attributable to members
of the parent entity	20,955,114 ─────────	26,822,878 ─────────	2,165,402 ─────────	37,241,930 ─────────	19,980,480 ─────────
Dividends paid	23,906,558	9,562,623	17,929,938	12,110,681	6,106,557
Shares bought back on market	-	-	-	2,288,197	878,742
Share price	1.86	1.51	1.52	1.42	1.00
Change in share price	0.35	(0.01)	0.10	0.42	0.105
Net assets per share	1.66	1.68	1.55	1.63	1.42
Change in net assets per share	(0.02)	0.13	(0.08)	0.21	0.12

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

During the financial year, HLB Mann Judd Assurance (NSW) Pty Ltd provided non-audit service in relation to the prospectus of Eildon Capital Limited, a former subsidiary of CVC. Refer note 29. The directors are satisfied that the provision of non-audit services by the auditor did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

all non-audit services have been reviewed by the audit committee to ensure they do not impact the impartiality and objectivity of the auditor
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

AUDITOR'S INDEPENDENCE DECLARATION

To the Directors of CVC Limited and its controlled entities

As lead auditor for the audit of the consolidated financial report of CVC Limited for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

(a) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
(b) any applicable code of professional conduct in relation to the audit.

This declaration is in relation to CVC Limited and the entities it controlled during the period.

Sydney, NSW M D Muller 21 August 2017 Partner

(AND ITS CONTROLLED ENTITIES)

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2017

	Notes	2017	2016
		\$	\$
INCOME FROM CONTINUING OPERATIONS
Contract revenue	9	-	32,872,733
Interest income		8,454,472	10,950,573
Income from equity investments		28,796,386	17,902,046
Sale of land		7,932,004	3,377,753
Fee income		1,490,967	1,894,422
Other income		1,143,901 ─────────	1,011,679 ─────────
Total income	4	47,817,730 ─────────	68,009,206 ─────────
Share of net profits of associates accounted for using the equity
method	15	941,554	2,205,874
EXPENSES
Cost of land sold		4,355,616	2,890,735
Contract Costs		-	28,161,174
Net loss on sale of equity investments		-	10,468,880
Impairment of investment properties		931,115	-
Directors fees		1,029,179	764,683
Employee costs		4,939,100	4,401,154
Finance costs	5	3,184,071	1,871,738
Impairment of financial instruments	5	2,476,198	5,686,588
Management and consultancy fees		1,131,834	1,165,046
Other expenses	5	1,766,131 ─────────	1,930,716 ─────────
Profit before related income tax expense		28,946,040	12,874,366
Income tax expense	6	4,676,309 ─────────	1,774,818 ─────────
Net profit from continuing operations		24,269,731	11,099,548
Net profit from discontinued operation	28	5,187,680 ─────────	3,950,635 ─────────
Net profit		29,457,411	15,050,183
Net profit attributable to non-controlling interest	25	1,956,057 ─────────	1,251,789 ─────────
Net profit attributable to members of the parent entity		27,501,354 ═════════	13,798,394 ═════════

The above statement of financial performance is to be read in conjunction with the notes to the financial statements set out on pages 16 to 71.

(AND ITS CONTROLLED ENTITIES)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

	Notes	2017	2016
		\$	\$
Profit for the year		29,457,411 ───────	15,050,183 ───────
Other comprehensive income
Items that may be reclassified to profit or loss
Investment value (decrease)/increases recognised in other
reserves	26	(1,637,517)	15,637,300
Amounts transferred from other reserves to income on sale	26	(1,897,040)	(2,586,421)
Income tax on items taken directly to or from equity	26	(3,030,664) ───────	- ───────
Other comprehensive (loss)/ income for the year, net of tax		(6,565,221) ───────	13,050,879 ───────
Total comprehensive income for the year		22,892,190 ═══════	28,101,062 ═══════
Attributable to
Shareholders		20,955,114	26,822,878
Non-controlling interest		1,937,076 ───────	1,278,184 ───────
		22,892,190 ═══════	28,101,062 ═══════
Total comprehensive income for the period attributable to members of the parent entity arises from:
Continuing operations		16,579,528	24,013,423
Discontinued operation		6,312,662 ───────	4,087,639 ───────
		22,892,190 ═══════	28,101,062 ═══════
Basic and diluted earnings per share for profit from continuing
operations attributable to the members of the parent entity	7	0.1993	0.0948
Basic and diluted earnings per share for profit attributable to the members of the parent entity	7	0.2301 ═════════	0.1154 ═════════

The above statement of comprehensive income is to be read in conjunction with the notes to the financial statements set out on pages 16 to 71.

(AND ITS CONTROLLED ENTITIES) CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Notes

		2017	2016
		\$	\$
CURRENT ASSETS
Cash and cash equivalents	27	41,746,716	21,673,050
Loans and other receivables	9	29,676,038	80,695,636
Financial assets – "at fair value through profit or loss"	12	15,309,160	2,489,914
Derivative financial instrument	22	-	143,000
Inventories	13	6,621,201	14,282,496
Current tax assets	6	-	258
Other assets	14	186,764 ─────────	140,215 ─────────

		93,539,879	119,424,569
Assets classified as held for sale	11	- ─────────	12,916,653 ─────────
Total current assets		93,539,879 ─────────	132,341,222 ─────────
NON-CURRENT ASSETS
Loans and other receivables	9	21,267,139	21,725,495
Financial assets – "available-for-sale"	10	56,402,582	69,331,501
Financial assets – "at fair value through profit or loss"	12	5,034,187	-
Inventories	13	15,758,428	10,860,450
Investments accounted for using the equity method	15	33,839,849	5,363,372
Property, plant and equipment	16	397,403	581,157
Investment properties	17	8,578,697	13,159,852
Intangible assets	18	-	52,435
Deferred tax assets	6	5,554,585 ─────────	1,989,207 ─────────
Total non-current assets		146,832,870 ─────────	123,063,469 ─────────
TOTAL ASSETS		240,372,749 ─────────	255,404,691 ─────────
CURRENT LIABILITIES
Trade and other payables	19	8,151,671	12,497,426
Interest bearing loans and borrowings	21	12,679,439	3,167,951
Provisions	20	773,334	1,184,514
Current tax liabilities	6	4,217,590 ─────────	2,289,683 ─────────
Total current liabilities		25,822,034 ─────────	19,139,574 ─────────
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings	21	10,123,967	21,571,053
Provisions	20	18,825	121,006
Deferred tax liabilities	6	5,972,736	1,054,077
Total non-current liabilities		───────── 16,115,528 ─────────	───────── 22,746,136 ─────────
TOTAL LIABILITIES		41,937,562 ─────────	41,885,710 ─────────
NET ASSETS		198,435,187	213,518,981
		═════════	═════════
EQUITY
Contributed equity Retained earnings	23 24	103,646,848 80,631,251	103,646,848 72,766,639
Other reserves	26	13,870,308	24,794,268
		─────────	─────────
Total parent entity interest		198,148,407	201,207,755
Non-controlling interest	25	286,780 ─────────	12,311,226 ─────────
TOTAL EQUITY		198,435,187	213,518,981
		═════════	═════════

The above statement of financial position is to be read in conjunction with the notes to the financial statements set out on pages 16 to 71.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2017

	Co ibu ted ntr ity equ	tai ned Re nin ear gs	As set alu ati rev on	Em loy p ee ity be nef it equ	eig xch For n e ang e nsl atio tra n	Ow f th ner s o e ent par	rol lin No ont n-c g int st ere	To tal
	\$	\$	\$	\$	\$	\$	\$	\$
ly At 1 Ju 201 6	103 646 848 , , ═══ ═══ ═══ ══	72, 766 639 , ═══ ═══ ═══ ══	19, 103 188 , ═══ ═══ ═══ ══	5, 367 223 , ═══ ═══ ═══ ══	323 857 , ═══ ═══ ═══ ══	201 207 755 , , ═══ ═══ ═══ ══	12, 311 226 , ═══ ═══ ═══ ══	213 518 981 , , ═══ ═══ ═══ ══
fit for th Pro e y ear	-	27, 501 354 ,	-	-	-	27, 501 354 ,	1, 956 057 ,	29, 457 411 ,
Oth hen siv e lo er c om pre ss	- ─── ─── ─── ──	- ─── ─── ─── ──	(6, ) 320 499 , ─── ─── ───	- ─── ─── ───	(22 ) 5, 741 ─── ─── ───	(6, ) 546 240 , ─── ─── ───	( ) 18, 981 ─── ─── ───	(6, ) 565 221 , ─── ─── ───
To tal hen siv e in e/( los s) for th com pre com e y ear	- ─── ─── ─── ──	27, 501 354 , ─── ─── ───	── (6, ) 320 499 , ─── ─── ───	── - ─── ─── ───	── (22 ) 5, 741 ─── ─── ───	── 20, 955 114 , ─── ─── ───	── 1, 937 076 , ─── ─── ───	── 22, 892 190 , ─── ─── ───
h s har eho lde Tra ctio wit nsa ns rs:		──	──	──	──	──	──	──
Ac of rol led isit ion int st i titi ont qu ere en es n c	-	-	1, 264	-	-	1, 264	( ) 19, 624	( ) 18, 360
sal of rol led Dis int st i titi ont po ere n c en es	-	-	(25 ) 3, 686	-	-	(25 ) 3, 686	( ) 12, 201 030 ,	( ) 12, 454 716 ,
Ret of ital urn cap	-	-	-	-	-	-	( 1, ) 000 000 ,	( 1, ) 000 000 ,
ide nd id Div pa	-	(23 ) 906 558 , ,	-	-	-	(23 ) 906 558 , ,	(84 ) 3, 552	(24 ) 750 110 , ,
Tra nsf er f rom re ser ve	-	( 1, 241 ) 925 ,	1, 241 925 ,	-	-	-	-	-
Sha re b d p ent ase aym	- ─── ─── ─── ──	5, 511 741 , ─── ─── ─── ──	- ─── ─── ─── ──	(5, 367 223 ) , ─── ─── ─── ──	- ─── ─── ─── ──	144 518 , ─── ─── ─── ──	102 684 , ─── ─── ─── ──	247 202 , ─── ─── ─── ──
At 30 Jun e 2 017	103 646 848 , , ═══ ═══ ═══ ══	80, 631 251 , ═══ ═══ ═══ ══	13, 772 192 , ═══ ═══ ═══ ══	- ═══ ═══ ═══ ══	98, 116 ═══ ═══ ═══ ══	198 148 407 , , ═══ ═══ ═══ ══	286 780 , ═══ ═══ ═══ ══	198 435 187 , , ═══ ═══ ═══ ══
At 1 Ju ly 201 5	103 646 848 , ,	68, 530 868 ,	7, 585 634 ,	5, 981 880 ,	( 31, 783 )	185 713 447 , ,	15, 145 337 ,	200 858 784 , ,
fit for th Pro e y ear	═══ ═══ ═══ ══ -	═══ ═══ ═══ ══ 13, 798 394 ,	═══ ═══ ═══ ══ -	═══ ═══ ═══ ══ -	═══ ═══ ═══ ══ -	═══ ═══ ═══ ══ 13, 798 394 ,	═══ ═══ ═══ ══ 1, 251 789 ,	═══ ═══ ═══ ══ 15, 050 183 ,
Oth hen siv e in er c om pre com e	-	-	12, 668 844 ,	-	355 640 ,	13, 024 484 ,	26, 395	13, 050 879 ,
tal hen siv e in e fo r th To com pre com e y ear	─── ─── ─── ── - ─── ─── ─── ──	─── ─── ─── ── 13, 798 394 , ─── ─── ───	─── ─── ─── ── 12, 668 844 , ─── ─── ───	─── ─── ─── ── - ─── ─── ───	─── ─── ─── ── 355 640 , ─── ─── ───	─── ─── ─── ── 26, 822 878 , ─── ─── ───	─── ─── ─── ── 1, 278 184 , ─── ─── ───	─── ─── ─── ── 28, 101 062 , ─── ─── ───
h s har eho lde Tra ctio wit nsa ns rs:		──	──	──	──	──	──	──
Ac isit ion of int st i rol led titi ont qu ere en es n c	-	-	( 525 780 ) ,	-	-	( 525 780 ) ,	( 4, 461 055 ) ,	( 4, 986 835 ) ,
sal of rol led Dis int st i titi ont po ere n c en es	-	-	( 625 510 ) ,	-	-	( 625 510 ) ,	1, 750 727 ,	1, 125 217 ,
of ital Ret urn cap	-	-	-	-	-	-	( ) 500 000 ,	( ) 500 000 ,
Div ide nd id pa	-	( 9, 562 623 ) ,	-	-	-	( 9, 562 623 ) ,	( 1, 195 336 ) ,	( 10, 757 959 ) ,
Sha re b d p ent ase aym	- ─── ─── ─── ──	- ─── ─── ───	- ─── ─── ───	( ) 614 657 , ─── ─── ───	- ─── ─── ───	( ) 614 657 , ─── ─── ───	293 369 , ─── ─── ───	( ) 321 288 , ─── ─── ───
At 30 Jun e 2 016	103 646 848 , , ═══ ═══ ═══ ══	── 72, 766 639 , ═══ ═══ ═══ ══	── 19, 103 188 , ═══ ═══ ═══ ══	── 5, 367 223 , ═══ ═══ ═══ ══	── 323 857 , ═══ ═══ ═══ ══	── 201 207 755 , , ═══ ═══ ═══ ══	── 12, 311 226 , ═══ ═══ ═══ ══	── 213 518 981 , , ═══ ═══ ═══ ══

The above statement of changes in equity is to be read in conjunction with the notes to the financial statements as set out on pages 16 to 71.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

		2017	2016
		\$	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts in the course of operations		41,495,346	91,200,796
Cash payments in the course of operations		(55,626,240)	(94,892,253)
Net cash receipts for land held for resale		4,167,529	6,247,695
Proceeds from disposal of financial assets at fair value through profit or loss		19,623,370	2,035,338
Payments for disposal of financial assets at fair value through profit or loss		(36,820,316)	(2,139,422)
Proceeds on construction contract		3,840,320	2,771,151
Interest received		7,524,860	8,885,093
Dividends received		2,248,945	12,972,488
Interest paid		(545,726)	(556,207)
Income taxes paid		(2,385,479) ───────	(1,695,380) ───────
Net cash (used in)/provided by operating activities	27	(16,477,391) ───────	24,829,299 ───────
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital expenditure for investment properties		(1,248,076)	(1,285,066)
Payments for property, plant and equipment		(277,656)	(143,088)
Payments for investment properties		(20,294,951)	(5,350,000)
Proceeds from disposal of investment property		-	8,200,000
Payments for equity investments		(18,310,598)	(54,266,244)
Proceeds from disposal of equity investments		64,205,739	42,626,372
Disposal of subsidiaries, net of cash received		(1,368,382)	-
Acquisition of intangibles		(7,738)	(44,138)
Loans provided		(44,408,000)	(99,329,419)
Loans repaid		59,940,341 ───────	64,597,747 ───────
Net cash provided by/(used in) investing activities		38,230,679 ───────	(44,993,836) ───────
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings		(14,839,117)	(28,627,970)
Proceeds from borrowings		30,665,611	30,271,000
Dividends paid		(24,287,652)	(10,552,026)
Payments for share buy-back		(19,624)	(5,631,461)
Payments for return of capital		(1,000,000)	(500,000)
Proceeds from issues of shares		7,987,657	1,723,695
Restructure transaction costs		(166,099) ───────	- ───────
Net cash used in financing activities		(1,659,224) ───────	(13,316,762) ───────
Net increase/(decrease) in cash and cash equivalents		20,094,064	(33,481,299)
Foreign exchange (loss)/gain on cash		(20,398)	697,616
Cash and cash equivalents at the beginning of the financial year		21,673,050 ───────	54,456,733 ───────
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR	27	41,746,716	21,673,050
		════════	════════

The above statement of cash flows is to be read in conjunction with the notes to the financial statements set out on pages 16 to 71.

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

Note	Contents
1.	Statement of Accounting Policies
2.	Controlled Entities
3.	Parent Company Information
4.	Income
5.	Profit Before Income Tax Expense
6.	Income Tax
7.	Earnings Per Share
8.	Dividends
9.	Loans and Other Receivables
10.	Financial Assets – "Available-for-Sale"
11.	Assets classified as Held for Sale
12.	Financial assets – "At Fair Value Through Profit or Loss"
13.	Inventories
14.	Other Assets
15.	Investments Accounted for Using the Equity Method
16.	Property, Plant and Equipment
17.	Investment Properties
18.	Intangible Assets
19.	Trade and Other Payables
20.	Provisions
21.	Interest Bearing Loans and Borrowings
22.	Derivative Financial Instruments
23.	Contributed Equity
24.	Retained Earnings
25.	Non-Controlling Interest
26.	Other Reserves
27.	Notes to Statement of Cash Flows
28. 29.	Discontinued operations Auditors' Remuneration
30.	Commitments and Contingencies
31.	Segment Information
32.	Related Party Information
33.	Additional Financial Instruments Disclosure
34.	Fair Value Measurements
35.	Events Subsequent to Year End
36.	Critical Accounting Estimates and Judgements

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES

The significant policies which have been adopted in the preparation of this Financial Report are:

1.1 Basis of Preparation

The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards. The financial report has also been prepared on a historical cost basis, except for "available-for-sale" and "at fair value through profit or loss" investments and investment properties which have been measured at fair value.

These accounting policies have been consistently applied by each entity in CVC and, except where a change in accounting policy is indicated, are consistent with those of the previous year. Management is required to make judgements, estimates and assumptions in relation to the carrying value of assets and liabilities, that have significant risk of material adjustments in the next year and these have been disclosed in the relevant notes to the financial statements.

Critical accounting estimates

The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying CVC's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 36.

1.2 Statement of Compliance

The financial report complies with Australian Accounting Standards, which include the Australian Accounting Interpretations. The financial report also complies with International Financial Reporting Standards (IFRS).

There are no standards, interpretations or amendments to existing standards that are effective for the first time for the financial year commencing 1 July that have a material impact on CVC.

Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2017 reporting period:

(i) AASB 9 Financial Instruments

AASB 9 Financial Instruments was released in December 2014 and is mandatory for periods beginning on or after 1 January 2018. The Standard addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets.

CVC has yet to undertake a detailed assessment of the classification and measurement of financial assets. The financial assets held by the group include:

Equity instruments currently classified as "available-for-sale" for which a fair value through other comprehensive income election is available;
Equity instruments currently measured "at fair value through profit or loss" which would likely continue to be measured on the same basis under the standard;
Loans and receivables currently measured at amortised cost using the effective interest rate method which would likely continue to be measured on the same basis under the standard.

Accordingly CVC does not expect the new guidance to have a significant impact on the classification and measurement of its financial assets.

The new impairment model requires the recognition of impairment provisions based on expected credit losses rather than only incurred credit losses as is the case under AASB 139. While CVC has not yet undertaken a detailed assessment of how its impairment provisions would be affected by the new model, it may result in an earlier recognition of credit losses.

The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of CVC's disclosures about its financial instruments particularly in the year of the adoption of the new standard.

(ii) AASB 15 Revenue from contracts with customers

AASB 15 Revenue from contracts with customers was released in October 2015 and is mandatory for periods beginning on or after 1 January 2018. The standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer – so the notion of control replaces the existing notion of risks and rewards. CVC does not expect the new standard to have any material impact on the timing of recognition of its revenues in the parent company and its subsidiaries in the initial period of application. However, CVC is still assessing the impact on the timing of recognition of the revenues in the equity accounting associates.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

1.2 Statement of Compliance

(iii) AASB 16 Leases

AASB 16 Leases was released in February 2016 and is mandatory for periods beginning on or after 1 January 2019. The new standard introduces a single lessee accounting model that will require a lessee to recognise right-of-use assets and lease liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Right-of-use assets are initially measured at their cost and lease liabilities are initially measured on a present value basis. Subsequent to initial recognition:

• Right-of-use assets are accounted for on a similar basis to non-financial assets, whereby the right-of-use asset is accounted for in accordance with a cost model unless the underlying asset is accounted for on a revaluation basis; and

• Lease liabilities are accounted for on a similar basis as other financial liabilities, whereby interest expense is recognised in

respect of the liability and the carrying amount of the liability is reduced to reflect lease payments made.

The standard will affect primarily the accounting for CVC's operating leases. As at the reporting date, CVC has non-cancellable operating lease commitments of \$4,190,799, see note 30.1. As at 30 June 2017 if AASB 16 Leases was adopted the disclosure would be as follows:

Right of use assets	\$3,703,913
Lease liability
Current	\$555,094
Non-current	\$3,148,819

Over the life of the right of use asset the following amounts would be recognised in the statement of financial performance:

Interest expense	\$486,886
Impairment charge	\$3,703,913
	─────────
Total	\$4,190,799
	═════════

1.3 Principles of Consolidation

Controlled entities

The consolidated financial statements comprise the financial statements of CVC Limited (the "Company") and its subsidiaries during the year ended 30 June 2017 ("CVC"). The financial statements of controlled entities are included in the results only from the date control commences until the date control ceases and include those entities over which CVC has the power to govern the financial and operating policies so as to obtain benefits from their activities.

In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profits and losses resulting from intra-group transactions have been eliminated in full and the reporting period and accounting policies of subsidiaries are consistent with those of the parent entity.

The acquisition of subsidiaries is accounted for using the purchase method of accounting which allocates the cost of the business combination to the fair value of the assets acquired and the liabilities assumed at the date of acquisition.

Non-controlling interests not held by CVC are allocated their share of net profit after tax in the statement of comprehensive income and are presented within equity in the consolidated statement of financial position, separately from parent shareholders' equity. Increases in investments in existing controlled entities are recognised by CVC in equity with no impact on goodwill and the statement of financial performance. The difference between the consideration paid by CVC and the carrying amount of noncontrolling interest has been included in asset revaluation reserve.

Associates

Associates are those entities, other than partnerships, over which CVC exercises significant influence but not control. In the consolidated financial statements investments in associates are accounted for using equity accounting principles. The equity accounted investments are not recorded at a value in excess of CVC's share of the associates net assets at the date significant influence commences, with the exception of CVC's share of the associates future profits. Investments in associates are carried at the lower of the equity accounted amount and recoverable amount. CVC's equity accounted share of the associates' net profit or loss is recognised in the consolidated statement of comprehensive income from the date significant influence commences until the date significant influence ceases. CVC's equity accounted share of movements in retained profits from changes in accounting policies by associates is recognised directly in consolidated retained earnings (note 24). CVC's equity accounted share of other movements in reserves of associates is recognised directly in consolidated reserves.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

1.3 Principles of Consolidation (Continued)

Parent entity information

The financial information of the Company is disclosed in note 3 and has been prepared on the same basis as the consolidated financial statements with the exception of investments in associates and controlled entities which are accounted for as "available-forsale" investments.

Joint ventures

CVC's interests in joint venture partnerships are accounted for using equity accounting principles. Investments in joint venture partnerships are carried at the lower of the equity accounted amount and recoverable amount. CVC's equity accounted share of the joint venture partnerships' net profit or loss is recognised in the consolidated statement of comprehensive income from the date joint control commences to the date joint control ceases. CVC's share of other movements in reserves is recognised directly in consolidated reserves.

Goodwill

Goodwill is considered to have an indefinite life and represents the excess of the purchase consideration over the fair value of identifiable net assets acquired at the time of acquisition of a business or shares in a controlled entity. Following initial recognition goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortised.

1.4 Impairment

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Non-financial assets other than goodwill that suffered impairment are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed.

1.5 Investments

Set-off of financial assets and liabilities

For investments with direct associated debt, the financial assets and liabilities are reflected on a net basis where this reflects a right, and an intention, to set-off the expected future cash flows from settling those assets and liabilities.

1.6 Income Tax and Other Taxes

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 authorities on the current period's taxable income at the tax rates enacted by the reporting date. 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 reporting date.

Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profits will be available against which deductible temporary differences and the carry-forward of unused tax credits can be utilised. Unrecognised deferred income tax assets are reassessed at each reporting 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.

The carrying amount of deferred income tax assets is reviewed at each reporting 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.

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 the same taxation authority.

Income taxes relating to items recognised directly in equity are recognised in equity and not in profit.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

1.6 Income Tax and Other Taxes (Continued)

Tax consolidation legislation

The controlled entities of the Company implemented the tax consolidation legislation as at 30 June 2003. The entities in the consolidated group continue to account for their own current and deferred tax amounts. CVC has applied the "stand-alone taxpayer" approach in determining the appropriate amount of current taxes and deferred taxes to be allocated to members of the tax consolidated group. The Company recognises the current tax liabilities (or assets) from controlled entities in the tax consolidated group. To the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised the Company recognises the deferred tax assets from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group.

Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except:

when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the taxation authority are classified as operating cash flows.

1.7 Cash and Cash Equivalents

For the statement of cash flows, cash includes cash on hand and short-term deposits with an original maturity of three months or less.

1.8 Trade and Other Payables

Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to CVC prior to the end of the financial year that are unpaid and arise when CVC becomes obliged to make future payments in respect of the purchase of these goods and services. Trade payables are non-interest bearing and are normally settled on average between 30 - 45 day terms.

1.9 Trade and Other Receivables

Trade and other receivables, which generally have 30 - 120 day terms, are stated at their amortised cost less impairment losses. Individual debts that are known to be uncollectible are written off when identified. An impairment provision is recognised when there is objective evidence that CVC will not be able to collect the receivable.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

1.10 Property, Plant and Equipment

Acquisition

Items of property, plant and equipment are recorded at cost and depreciated as outlined below.

Investment properties

Investment properties are initially measured at cost, including transaction costs. Investment properties are stated at fair value, which reflect market conditions at the reporting date. Gains or losses arising from changes in the fair value of investment properties are recognised in the statement of financial performance in the year in which they arise.

Leased plant and equipment

Lease of plant and equipment under which the Company or its controlled entities assume substantially all the risks and benefits of ownership are classified as finance leases. Other leases are classified as operating leases.

Finance leases are capitalised. A lease asset and a liability equal to the present value of the minimum lease payments are recorded at the inception of the lease. Lease liabilities are reduced by repayments of principal. The interest components of the lease payments are charged to the profit or loss. Contingent rentals are expensed as incurred.

Payments made under operating leases are charged against profits in equal instalments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.

Depreciation and amortisation

Property, plant and equipment are depreciated/amortised using the straight line and diminishing value methods over the estimated useful lives, with the exception of finance lease assets. Finance lease assets are amortised over the term of the relevant lease, or where it is likely CVC will obtain ownership of the asset, the life of the asset. Depreciation and amortisation rates and methods are reviewed annually for appropriateness. When changes are made, adjustments are reflected prospectively in current and future periods only.

The current depreciation rates for each class of assets are as follows:

Plant and equipment	5% to 50%
Leased assets	15% to 25%
Leasehold improvements	2.5% to 30%

The carrying values of plant and equipment are reviewed for impairment at each reporting date, with recoverable amounts being estimated when events or changes in circumstances indicate that the carrying value may be impaired.

1.11 Inventories

Inventories are measured at the lower of cost and net realisable value. Cost is calculated using the average cost method and includes direct and allocated costs incurred in acquiring the inventories and bringing them to their present location and condition. Provision is recognised when there is objective evidence that the consolidated entity will not be able to sell the inventory at normal reseller pricing.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

1.12 Non-current assets (or disposal groups) held for sale and discontinued operations

Non-current assets (or disposal groups) are classified as held for sale if their carrying amounts will be recovered through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell.

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of profit or loss.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

1.13 Investments and Other Financial Assets

Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either "financial assets at fair value through profit or loss", "loans and receivables", "held-to-maturity investments", or "available-for-sale" investments, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, transaction costs. CVC determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end.

All regular way purchases and sales of financial assets are recognised on the trade date i.e. the date that CVC commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets under contracts that require delivery of the assets within the period established generally by regulation or convention in the marketplace.

"At fair value through profit or loss"

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. After initial recognition "at fair value through profit or loss" assets are measured at fair value with gains or losses being recognised in the statement of financial performance.

The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in the consolidated statement of financial performance when the loans and receivables are derecognised or impaired, as well as through the amortisation process.

"Available-for-sale" investments

"Available-for-sale" investments are those non-derivative financial assets that are designated as "available-for-sale" or are not classified as any of the two preceding categories. After initial recognition "available-for-sale" investments are measured at fair value with gains or losses being recognised as separate components of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in the consolidated statement of financial performance.

The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date. For investments with no active market, fair value is determined using valuation techniques. Such techniques include using recent arm's length market transactions; net asset backing; reference to the current market value of another instrument that is substantially the same and discounted cash flow analysis.

All other non-current investments are carried at the lower of cost and recoverable amount.

CVC assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as "available-for-sale", a significant or prolonged decline in the fair value of a security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for "available-for-sale" financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the statement of comprehensive income – is removed from equity and recognised in the statement of comprehensive income. Impairment losses recognised in the consolidated statement of financial performance on equity instruments classified as "available-for-sale" are not reversed through the consolidated statement of financial performance.

1.14 Intangible Assets

(i) Goodwill

Goodwill on acquisition of subsidiaries is included in intangible assets. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.

(ii) Other intangible Assets

Other intangible assets are initially recorded at cost. Following initial recognition, other intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

1.15 Interest-Bearing Loans and Borrowings

All loans and borrowings are initially recognised at the 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. Borrowing costs consists of interest and other costs relating to the financing of the acquisition of investment properties, and are expensed in the period they occur.

1.16 Revenue and Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to CVC and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised in total income when the significant risks and rewards of ownership have been transferred to the customer. This transfer generally occurs when the goods are delivered to the customer.

Interest income

Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Sale of non-current assets

The gain or loss on sale of non-current asset sales is included as income at the date control of the asset passes to the buyer, when a contract of sale becomes unconditional.

The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal and in the case of "available-for-sale" assets will include any amount attributable to the asset which is included in reserves.

Where an equity investment in a controlled entity is reduced and the entity ceases to be controlled, revenue from either the sale of goods or services from that investment ceases to be included in the statement of comprehensive income. If the equity investment continues to be held as an "available-for-sale" asset, changes in its fair value will be recognised directly in other comprehensive income. This may impact the ability to directly compare financial information.

Provision of services

Revenue from the provision of services includes management fees charged to associated entities and is recognised when the terms or the agreement are satisfied and the provision of warehousing services to external parties is recognised as the service is provided.

Where a financial asset has been issued in exchange for services, the market value of that asset is included as income at the date an unconditional contract is signed.

Fee Income

Fees and commissions that relate to the execution of a significant act (for example, advisory or arrangement services, placement fees and underwriting fees) are recognised when the significant act has been completed.

Fees charged for providing ongoing services (for example, managing and administering existing facilities and funds) are recognised as income over the service period.

Dividends

Revenue from dividends and other distributions from controlled entities are recognised by the parent entity when they are declared by the controlled entities.

Revenue from dividends from associates is recognised by the Company when dividends are received.

Revenue from dividends from other investments is recognised when received.

Dividends received out of pre-acquisition reserves are recognised in revenue and the investment is also assessed for impairment.

Rental income

Rental revenue from operating leases is recognised on a straight line basis over the term of the lease.

Outgoings recovered

Outgoings recovered in relation to operating leases are recognised on a straight line basis over the term of the lease.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

1.16 Revenue and Revenue Recognition (Continued)

Construction contract

When the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, contract revenue is recognised over the period of the contract by reference to the stage of completion.

Contract costs are recognised as expenses by reference to the stage of completion of the contract activity at the end of the reporting period. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs incurred that are likely to be recoverable.

Variations in contract work, claims and incentive payments are included in contract revenue to the extent that may have been agreed with the customer and are capable of being reliably measured.

1.17 Employee Entitlements

Wages, salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees' services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled including "on-costs".

Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

Share based payment transactions

CVC provides benefits to employees (including senior executives) of CVC in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions).

The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted, and amortised over the term of the plan.

1.18 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.

1.19 Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

1.20 Earnings Per Share

Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.

1.21 Comparative Figures

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.

1.22 Segment Reporting

A business segment is a distinguishable component of the entity that is engaged in providing differentiated products or services.

1.23 Contingent Consideration

Contingent consideration, resulting from business combinations, is valued at fair value at the acquisition date as part of the business combination. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability will be recognised in accordance with AASB 139 either in profit or loss or as a change to other comprehensive income.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 2: CONTROLLED ENTITIES

2.1 Composition of Consolidated Group

The consolidated financial statements include the following controlled entities. The financial years of all controlled entities are the same as that of the parent entity.

Companies incorporated in Australia:

	Interest Held by Consolidated Entity		Interest Held by non
				controlling interests
	2017	2016	2017	2016
	%	%	%	%
CVC Limited
Direct Controlled Entities:
AddVenture Pty Limited	100	100	-	-
AddVenture MP Pty Limited	100	-	-	-
Add Venture Unit Trust No.1	100	-	-	-
Biomedical Systems Pty Limited	100	100	-	-
CVC Alternate Funding Pty Limited	100	100	-	-
CVC Bentleigh (Loan) Pty Limited	100	100	-	-
CVC Bentleigh (Developer) Pty Limited	100	100	-	-
CVC Caboolture Unit Trust	60	60	40	40
CVC Fairfield Pty Limited	-	100	-	-
CVC Finance Company Pty Limited	100	100	-	-
CVC Funds Management Pty Limited	100	100	-	-
CVC Knoxfield Unit Trust No. 2	-	100	-	-
CVC Investment Managers Pty Limited	100	100	-	-
CVC Litigation Funding Pty Limited	100	100	-	-
CVC Managers Pty Limited	100	100	-	-
CVC Masters Unit Trust	50	50	50	50
CVC Mezzanine Finance Pty Limited	100	100	-	-
CVC Nepean Pty Limited	100	100	-	-
CVC (Newcastle) Pty Limited	100	100	-	-
CVC Property Investments Pty Limited	100	100	-	-
CVC Reef Investment Managers Pty Limited	100	100	-	-
CVC Renewables Pty Limited	94	94	6	6
CVC Rockhampton Unit Trust	82	82	18	18
CVC Wagga Wagga Pty Limited	100	100	-	-
CVC Wagga Wagga Unit Trust	50	50	50	50
Cellnet Group Limited (a)	-	58	-	42
Eildon Capital Limited (b)	-	67	-	33
Eildon Funds Management Limited (b)	-	100	-	-
Greens IPO SALECO	-	100	-	-
iLiv CVC Rockhampton Trust	55	55	45	45
MAC 1 MP Pty Ltd	66	66	34	34
Marsden Park Development Trust	66	66	34	34
P2P Investments Pty Limited	100	100	-	-
Renewable Energy Managers Pty Limited	-	100	-	-
Stinoc Pty Limited	99	99	1	1
The Eco Fund Pty Limited	100	100	-	-

Controlled Entities jointly owned by CVC Renewables Pty Limited and CVC Reef Investment Managers:

Wind Corporation Australia Pty Limited	100	100	-	-
Hampton Wind Park Company Pty Limited	100	100	-	-

(a) Cellnet Group Limited ceased to be controlled entity of CVC during the year.

(b) Eildon Capital Limited and Eildon Funds Management Limited ceased to be controlled entities and became associates of CVC during the year.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 2: CONTROLLED ENTITIES (CONTINUED)

2.1 Composition of Consolidated Group (Continued)

	Interest Held by Consolidated Entity		Interest Held by non controlling interests
	2017	2016	2017	2016
Controlled Entities controlled by Cellnet Group Limited (a):
C&C Warehouse (Holdings) Pty Limited	-	100	-	-
Regadget Pty Limited	-	100	-	-
OYT Pty Limited	-	100	-	-
Cellnet Online Pty Limited	-	100	-	-
Companies incorporated in New Zealand:
Controlled Entities controlled by Cellnet Group Limited (a):
Cellnet Limited	-	100	-	-
Companies incorporated in Hong Kong:
Controlled Entities controlled by Cellnet Group Limited (a):
3SixT Limited	-	100	-	-

(a) The entities controlled by Cellnet Group Limited ceased to be controlled entities of CVC during the year.

2.2 Acquisition and disposals of Business Operations

(a) Cellnet Group Limited

On 22 December 2016 CVC sold 83% of its holding in Cellnet Group Limited for a consideration of \$7,057,568. Refer to note 28.

(b) Eildon Funds Management Limited

On 16 November 2016 CVC sold 60% of its holding in Eildon Funds Management Limited for a consideration of \$420,000, at which time the company became an associate of CVC. Refer to note 28.

(c) Eildon Capital Limited

On 24 February 2017 Eildon Capital Limited successfully completed a capital raising of \$10 million and ASX listing. This had the effect of reducing CVC's ownership from 56.0% to 38.5%, at which time the company became an associate of CVC. Refer to note 28.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 2: CONTROLLED ENTITIES (CONTINUED)

2.3 Interest in material subsidiaries

(a) Significant restrictions

CVC has statutory and regulatory restrictions on its ability to access or use the assets in Cellnet Group Limited and Eildon Capital Limited for the financial year ending 30 June 2016. The Corporations Act 2001 provides CVC with an interest in the equity of the entities, but does not provide it a right to their assets.

CVC also has constitutional restrictions on its ability to access or use the assets of CVC Caboolture Unit Trust, CVC Masters Unit Trust, iLiv CVC Rockhampton Trust and Marsden Park Development Trust, which arise from the operation of the various Trust Deeds of the entities. CVC has an interest in the equity of the entities, but does not provide it a right to their assets or liabilities.

The carrying amount of the non-controlling interests of the various entities included within the consolidated financial statements to which these restrictions apply is \$286,780 (2016: \$12,311,226). Refer note 25.

(b) Information on subsidiaries:

Set out below are those entities that have non-controlling interests that are material to CVC.

Cellnet Group Limited:	a distributor of mobile and IT technology to the reseller community in Australia.
CVC Caboolture Unit Trust:	a commercial property development in Caboolture, Queensland.
CVC Masters Unit Trust:	a commercial property development in Port Macquarie, New South Wales.
Eildon Capital Limited:	an investment company with a focus on Australian property investments.
iLiv CVC Rockhampton Trust:	a residential property development in Rockhampton, Queensland.
Marsden Park Development Trust:	a residential property development in Riverstone, New South Wales.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 2: CONTROLLED ENTITIES (CONTINUED)

2.3 Interest in material subsidiaries (Continued)

(b) Information on subsidiaries (Continued):

Set out below is summarised financial information for each subsidiary that has non-controlling interests that are material to CVC. The amounts disclosed for each subsidiary are before inter-company eliminations.

	Ce lln et G Lim ite d rou p		rsd Ma Par en Eil do n C ita l L im ite d De vel Tru nt st ap op me		k	abo olt Un it CV C C ure Tru st		iLi ckh v C VC Ro ton am p Tru st		CV C M Un it T ast ers rus
	7(a ) 201	201 6	7( b) 201	201 6	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6
	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$
Su ari sed ba lan she et mm ce
Cu nt ets rre ass	-	20, 566 000 ,	-	17, 386 357 ,	8, 574	753 534 ,	3, 010 100 ,	48, 535	4, 186 181 ,	335 164 5, ,	8, 521 424 ,	391 184 5, ,
liab ilit Cu ies nt rre	- ── ── ── ─	8, 196 000 , ── ── ── ─	- ── ── ── ─	732 178 , ── ── ── ─	12, 681 001 , ── ── ── ─	683 961 , ── ── ── ─	9, 294 373 , ── ── ── ─	7, 123 328 , ── ── ── ─	2, 785 658 , ── ── ── ─	1, 934 640 , ── ── ── ─	42, 892 ── ── ── ─	717 849 , ── ── ── ─
Cu nt net set rre as s	- ── ── ── ─	12, 370 000 , ── ── ── ─	- ── ── ── ─	16, 654 179 , ── ── ── ─	( ) 12, 672 427 , ── ── ── ─	69, 573 ── ── ── ─	(6, ) 284 273 , ── ── ── ─	( 7, 074 793 ) , ── ── ── ─	1, 400 523 , ── ── ── ─	3, 400 524 , ── ── ── ─	8, 478 532 , ── ── ── ─	4, 673 335 , ── ── ── ─
No ent set n-c urr as s	-	1, 204 000 ,	-	1, 139 676 ,	11, 427 737 ,	10, 860 450 ,	5, 680 691 ,	6, 329 406 ,	-	-	7, 228 697 ,	10, 696 028 ,
No lia bil itie ent urr n-c s	- ── ── ── ─	18, 000 ── ── ── ─	- ── ── ── ─	786 902 , ── ── ── ─	260 754 , ── ── ── ─	11, 465 241 , ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─
No ent t as set n-c urr ne s	-	1, 186 000 ,	-	352 774 ,	11, 166 983 ,	( 604 791 ) ,	5, 680 691 ,	6, 329 406 ,	-	-	7, 228 697 ,	10, 696 028 ,
Ne t as set s	── ── ── ─ -	── ── ── ─ 13, 556 000 ,	── ── ── ─ -	── ── ── ─ 17, 006 953 ,	── ── ── ─ ( 1, 444 ) 505 ,	── ── ── ─ ( 535 218 ) ,	── ── ── ─ (60 ) 3, 582	── ── ── ─ ( 745 387 ) ,	── ── ── ─ 1, 400 523 ,	── ── ── ─ 3, 400 524 ,	── ── ── ─ 15, 707 229 ,	── ── ── ─ 15, 369 363 ,
Ac ula ted N CI cum	-	5, 627 315 ,	-	5, 280 325 ,	(93 ) 5, 928	( 589 524 ) ,	(24 1, 433 )	( 298 155 ) ,	742 699 ,	1, 699 742 ,	189 302 ,	20, 369
Su ari sed of sta tem ent mm co mp	reh ive in ens com	e
Re ven ue	42, 968	75, 154 000 ,	4, 200 577 ,	3, 324 009 ,	307 585 ,	516 362 ,	4, 162 495 ,	90, 953	3, 682 004 ,	2, 173 253 ,	1, 703 956 ,	34, 469 125 ,
fit/ ( los s) for th eri od Pro e p	1, 477 000 ,	1, 748 000 ,	2, 595 658 ,	031 172 2, ,	(97 ) 0, 225	( 605 625 ) ,	733 243 ,	( ) 745 487 ,	576 723 ,	710 380 ,	1, 697 594 ,	6, 017 400 ,
Oth hen siv e in er com pre com e	(42 ) 000 , ── ── ── ─	13, 000 ── ── ── ─	(48 304 ) , ── ── ── ─	( 19, 911 ) ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─
To tal reh ive in co ens com e mp	1, 435 000 ,	1, 761 000 ,	547 354 2, ,	2, 011 261 ,	(97 ) 0, 225	( 605 625 ) ,	243 733 ,	( 745 487 ) ,	576 723 ,	380 710 ,	1, 594 697 ,	6, 017 400 ,
fit/ ( los s) a llo ed CI Pro to N cat	614 114 ,	764 895 ,	884 651 ,	719 476 ,	(33 ) 9, 482	( 391 ) 223 ,	293 297 ,	( 195 ) 298 ,	317 198 ,	209 390 ,	168 933 ,	132 32,

(a) On 22 December 2016Cellnet Group Limited ceased to be a controlled entity of CVC. The amounts disclosed relate to the period to 22 December 2016. Refer note 28.

(b) On 24 February 2017 Eildon Capital Limited ceased to be a controlled entity of CVC. The amounts disclosed relate to the period to 24 February 2017. Refer note 28.

─────── ─────── ─────── ─────── ─────── ─────── ─────── ─────── ─────── ─────── ───────

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 2: CONTROLLED ENTITIES (CONTINUED)

2.3 Interest in material subsidiaries (Continued)

(b) Information on subsidiaries (Continued):

					rsd Ma en	k Par	CV C C abo	olt Un it ure	iLi v C VC Ro	ckh ton am p
	Ce lln et G Lim ite d rou		Eil do n C ita l L im ite d De vel Tru nt ap op me p		st	Tru st		Tru st		CV C M Un it T ast t ers rus
	7(a ) 201	201 6	7( b) 201	201 6	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6
	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$
ide nd aid NC I Div to s p	269 722 ,	231 306 ,	-	732 787 ,	-	-	236 576 ,	-	317 198 ,	209 390 ,	-	-
ari sed sh flo Su mm ca ws
Ca sh flo (u sed ) / fro in ws m
tin ctiv itie op era g a s	(7, ) 831 000 ,	481 000 ,	359 280 ,	4, 376 942 ,	(28 ) 8, 035	203 123 ,	2, 221 539 ,	( 6, 299 676 ) ,	2, 172 643 ,	991 173 ,	3, 530 892 ,	9, 115 506 ,
Ca sh flo (u sed ) / fro in ws m
inv ing tiv itie est ac s	(38 ) 000 ,	( 172 000 ) ,	519 584 2, ,	( 6, 430 861 ) ,	-	-	-	-	-	-	-	-
sh flo fro m/ ed Ca (us in) ws
fin ing tiv itie anc ac s	7, 207 000 ,	( 1, 095 000 ) ,	4, 803 755 ,	( 5, 377 289 ) ,	(46 1, 511 )	498 926 ,	(2, 194 454 ) ,	6, 309 506 ,	(2, ) 000 000 ,	( 1, 473 385 ) ,	(4, 310 ) 767 ,	( 8, 343 334 ) ,
t fo han Ne rei exc ge gn
dif fer enc es	(57 ) 000 ,	( 176 ) 000 ,	-	-	-	-	-	-	-	-	-	-
	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─
Ne t ( dec se) /in in rea cre ase
h a nd sh len iva ts cas ca equ	(7 ) 19, 000	( 962 000 ) ,	7, 682 619 ,	( 7, 431 208 ) ,	(74 ) 9, 546	702 049 ,	27, 085	9, 830	172 643 ,	( 482 212 ) ,	(77 ) 9, 875	772 172 ,

(a) On 22 December 2016 Cellnet Group Limited ceased to be a controlled entity of CVC. The amounts disclosed relate to the period to 22 December 2016. Refer note 28. (b) On 24 February 2017 Eildon Capital Limited ceased to be a controlled entity of CVC. The amounts disclosed relate to the period to 24 February 2017. Refer note 28.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 2: CONTROLLED ENTITIES (CONTINUED)

2.3 Interest in material subsidiaries (Continued)

(c) Transactions with non-controlling interests:

(i) Cellnet Group Limited

In March 2016, Cellnet Group Limited bought back and cancelled 2,050,000 shares for \$370,845 and issued 363,666 shares for no consideration. As a result, CVC increased its holding in Cellnet Group Limited by 2%. Immediately prior to the transaction, the carrying amount of the existing non-controlling interests in Cellnet Group Limited was \$5,910,477. CVC recognised a decrease in non-controlling interest of \$390,057 and a decrease in equity attributable to owners of the parent of \$19,212.

In September 2015, Cellnet Group Limited bought back and cancelled 2,074,800 shares for \$375,331. As a result, CVC increased its holding in Cellnet Group Limited by 2%. Immediately prior to the transaction, the carrying amount of the existing noncontrolling interests in Cellnet Group Limited was \$5,853,399. CVC recognised a decrease in non-controlling interest of \$417,554 and a decrease in equity attributable to owners of the parent of \$42,223.

The effect on the equity attributable to the owners of Cellnet Group Limited is summarised as follows:

	2017 \$	2016 \$
Carrying amount of non-controlling interests acquired	-	807,611
Consideration paid to non-controlling interests	- ─────────	(746,176) ─────────
Discount of consideration paid recognised in the transactions with non
controlling interests reserve within equity	-	61,435
	═════════	═════════

On 22 December 2016 Cellnet Group Limited ceased to be a controlled entity of CVC. Refer note 28.

(ii) Eildon Capital Limited

In October 2016, Eildon Capital Limited issued 3,533,073 shares for \$3,603,734. As a result, CVC decreased its holding in Eildon Capital Limited by 11.5%. Immediately prior to the purchase, the carrying amount of the existing non-controlling interest in Eildon Capital Limited was \$6,266,325. CVC recognised an increase in non-controlling interest of \$3,792,360 and a decrease in equity attributable to owners of the parent of \$188,626.

In September 2016, CVC acquired an additional 18,869 shares of Eildon Capital Limited for \$19,624. As a result, CVC increased its holding in Eildon Capital Limited by 0.1%. Immediately prior to the purchase, the carrying amount of the existing non-controlling interest in Eildon Capital Limited was \$6,240,037. CVC recognised a decrease in non-controlling interest of \$20,888 and an increase in equity attributable to owners of the parent of \$1,264.

In January 2016, 400,000 options were exercised for \$260,000. As a result, CVC decreased its holding in Eildon Capital Limited by 2%. Immediately prior to the transaction, the carrying amount of the existing non-controlling interests in Eildon Capital Limited was \$4,811,382. CVC recognised an increase in non-controlling interest of \$353,062 and a decrease in equity attributable to owners of the parent of \$93,062.

On 22 December 2015, Eildon Capital Limited bought back and cancelled 3,880,077 shares and 500,000 options for \$4,838,420. As a result, CVC increased its holding in Eildon Capital Limited by 13%. Immediately prior to the transaction, the carrying amount of the existing non-controlling interests in Eildon Capital Limited was \$9,292,900. CVC recognised a decrease in non-controlling interest of \$4,208,130 and a decrease in equity attributable to owners of the parent of \$630,290.

In October 2015, 2,250,000 options were exercised for \$1,462,500. As a result, CVC decreased its holding in Eildon Capital Limited by 7%. Immediately prior to the transaction, the carrying amount of the existing non-controlling interests in Eildon Capital Limited was \$7,380,493. CVC recognised an increase in non-controlling interest of \$1,994,948 and a decrease in equity attributable to owners of the parent of \$532,448.

Carrying amount of non-controlling interests acquired	20,888	4,208,130
Consideration paid to non-controlling interests	(19,624)	(4,838,420)
Carrying amount of non-controlling interests disposed	(3,792,360)	(2,348,010)
Consideration received from non-controlling interests	3,603,734 ─────────	1,722,500 ─────────
Excess of consideration paid recognised in the transactions with non
controlling interests reserve within equity	(187,362)	(1,255,800)
	═════════	═════════

On 24 February 2017 Eildon Capital Limited ceased to be a controlled entity and became an associate of CVC. Refer note 28.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 3: PARENT COMPANY INFORMATION

The salient financial information in relation to the parent company, CVC Limited, are as follows:

i) STATEMENT OF COMPREHENSIVE INCOME

	2017	2016
	\$	\$
INCOME
Net gain on sale of equity investments	12,662,282	-
Interest revenue	1,249,587	4,082,944
Dividend revenue	12,824,868	18,536,833
Net gain on financial assets at fair value through profit or loss	778,682
Recovery of investment in controlled entities	10,943,542	-
Recovery of investment in unrelated entities	7,381,455	12,414,820
Recovery of loan in controlled entities	81,200	-
Finance income	-	289,843
Fee income	40,000	46,923
Other income	101,183 ────────	21,552 ────────
Total income	46,062,799 ────────	35,392,915 ────────
EXPENSES
Net loss on sale of equity investments	-	9,647,841
Impairment of listed investments	79,729	4,530,803
Impairment of unlisted investments	78,103	-
Impairment of loans to controlled entities	-	3,492,836
Management and consultancy fees	7,750,061	7,127,461
Finance costs	6,142,716	5,656,605
Other expenses	822,389 ────────	959,217 ────────
Profit before related income tax expense	31,189,801	3,978,152
Income tax benefit	(3,740,626) ────────	(1,538,631) ────────
Net profit	34,930,427 ────────	5,516,783 ────────
Other comprehensive income
Items that may be reclassified to profit or loss
Investment value increase recognised in other reserves	27,606,519	7,636,629
Amounts transferred from other reserves to other comprehensive income on
sale	(4,290,162)	(266,689)
Income tax on items taken directly to or from equity	(10,206,182) ────────	- ────────
Other comprehensive income for the year, net of tax	13,110,175 ────────	7,369,940 ────────
Total comprehensive income for the year	48,040,602	12,886,723
	════════	════════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 3: PARENT COMPANY INFORMATION (CONTINUED)

ii) STATEMENT OF FINANCIAL POSITION

	2017	2016
	\$	\$
CURRENT ASSETS
Cash and cash equivalents	38,160,988	14,130,360
Loans and other receivables	2,762,167	1,008,111
Financial assets – "at fair value through profit or loss"	19,641,861	2,471,606
Other assets	194,689	176,239
	─────────	─────────
	60,759,705	17,786,316
Assets classified as held for sale	-	311,936
	─────────	─────────
Total current assets	60,759,705	18,098,252
	─────────	─────────
NON-CURRENT ASSETS
Loans and other receivables	42,553,665	70,751,207
Financial assets – "available-for-sale"	114,147,981	89,931,356
Deferred tax assets	2,953,427	-
	─────────	─────────
Total non-current assets	159,655,073 ─────────	160,682,563 ─────────

TOTAL ASSETS	220,414,778 ─────────	178,780,815 ─────────
CURRENT LIABILITIES
Trade and other payables	856,988	817,205
Current tax liabilities	4,220,277	1,589,120
	─────────	─────────
Total current liabilities	5,077,265	2,406,325
	─────────	─────────
NON-CURRENT LIABILITIES
Trade and other payables	67,023,684	62,400,891
Deferred tax liabilities	10,206,182	-
	─────────	─────────
Total non-current liabilities	77,229,866 ─────────	62,400,891 ─────────

TOTAL LIABILITIES	82,307,131 ─────────	64,807,216 ─────────
NET ASSETS	138,107,647	113,973,599
	═════════	═════════

EQUITY
Contributed equity	103,646,845	103,646,845
Retained earnings	10,646,379	(377,494)
Other reserves	23,814,423	10,704,248
	─────────	─────────
TOTAL EQUITY	138,107,647	113,973,599
	═════════	═════════

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

2017	2016
	\$

-	32,872,733

	2,741,957
	8,208,616

	-
	-
	1,214,798
	3,254,375
	13,432,873
	3,377,753

	-
738,605	1,894,422

	161,533
	289,843
991,622	560,303 ───────
47,817,730	68,009,206 ════════
	\$ 1,472,950 6,981,522 15,811,732 648,529 - 3,220,825 9,115,300 7,932,004 752,362 152,279 - ─────── ════════

NOTE 5: PROFIT BEFORE INCOME TAX EXPENSE

Profit before income tax expense has been arrived at after charging the following items:

Finance costs:
Related entities	1,032,272	661,620
Other entities
Interest and finance charges paid/payable for financial liabilities not at
fair value through profit or loss	1,400,526	1,210,118
Finance charge on receivables at fair value through profit or loss	751,273 ───────	- ───────
Total finance costs expensed	3,184,071 ════════	1,871,738 ════════
Impairment of financial instruments:
Impairment of listed investments	234,607	4,540,121
Impairment of unlisted investments	213,903	31,265
Impairment of investments in associated entities	197,233	362,000
Impairment of loans to associated entities	1,628,506	753,202
Impairment of loans to other entities	201,949 ───────	- ───────
Total impairment of financial instruments	2,476,198 ═══════	5,686,588 ════════
Other expenses:
Audit fees	156,500	169,536
Depreciation expense	125,738	229,598
Insurance	187,251	183,732
Legal costs	196,401	188,625
Rent	335,569	215,846
All other expenses	764,672 ───────	943,379 ───────
Total other expenses	1,766,131 ════════	1,930,716 ════════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

	2017	2016 \$ \$
NOTE 6: INCOME TAX
6.1 Income Tax Expense:
Profit from continuing operations before income tax expense	28,946,040	12,874,366
Profit from discontinued operation before income tax expense	3,737,427 ───────	4,016,405 ───────
Accounting profit before income tax	32,683,467 ───────	16,890,771 ───────
Income tax expense at the statutory income tax rate of 30%	9,805,040	5,067,231
Increase in income tax expense due to:
Sundry items	114,242	82,640
Trust losses not deductible	293,443	380,232
Tax losses not recognised	220,359	1,806,075
Tax losses recouped	767,399	-
Decrease in income tax expense due to:
Dividends received	(612,576)	(2,417,439)
Trust profit not assessable	(318,137)	(82,096)
Effect of lower tax rate in New Zealand (28%)	(14,525)	(1,414) -
Tax losses previously not recognised utilised Net deferred tax not recognised	(1,110,623)	(620,626) (2,572,063)
Recognised deferred tax balances	(5,891,215)	-
	─────── 3,253,407	─────── 1,642,540
Adjustments in respect of current income tax of previous years (a)	(27,351) ───────	198,048 ───────
Income tax expense	3,226,056 ════════	1,840,588 ════════
The major components of income tax expense are:
Current income tax charge	5,948,220	2,759,373
Deferred income tax	(2,694,813)	(1,116,833)
Adjustments in respect of current income tax of previous years (a)	(27,351) ───────	198,048 ───────
Income tax expense reported in the statement of financial performance	3,226,056 ════════	1,840,588 ════════
Income tax expense is attributable to:
Profit from continuing operations	4,676,309	1,774,818
Profit from discontinued operation	(1,450,253) ───────	65,770 ───────
Aggregate income tax expense	3,226,056 ════════	1,840,588 ════════

(a) The adjustment in respect of current income tax includes an under/(over) provision on tax liability arising from the 2016 income tax year.

6.2 Current Tax Assets:

Income tax receivable:	-	258
Balance at the end of the year	════════	════════
6.3 Current Tax Liabilities:
Income tax payable:	4,217,590	2,289,683
Balance at the end of the year	════════	════════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 6: INCOME TAX (CONTINUED)

6.4 Deferred Tax Assets:

Deferred income tax at 30 June related to the following deferred tax assets:

	Included in Income	Included in Equity	Total
	\$	\$	\$
Year ended 30 June 2017
Provisions and accrued expenses	627,228	-	627,228
Impairment expenses	5,204,147	-	5,204,147
Share raising costs	-	491	491
Equity accounted investments	109,563	-	109,563
Property, plant and equipment	41,085	-	41,085
Other	4,384	-	4,384
Tax losses	4,886,488	-	4,886,488
Deferred tax assets not recognised	(5,318,801) ────────	- ────────	(5,318,801) ────────
	5,554,094 ══════════	491 ══════════	5,554,585 ══════════
Year ended 30 June 2016
Provisions and accrued expenses	756,958	-	756,958
Impairment expenses	7,585,928	-	7,585,928
Share raising costs	-	143,716	143,716
Equity accounted investments	2,596,578	-	2,596,578
Property, plant and equipment	164,404	-	164,404
Other	79,810	-	79,810
Tax losses	6,479,992	-	6,479,992
Deferred tax assets not recognised	(15,816,929) ────────	(1,250) ────────	(15,818,179) ────────
	1,846,741 ══════════	142,466 ══════════	1,989,207 ══════════

6.5 Deferred Tax Liabilities

Deferred income tax at 30 June related to the following deferred tax liabilities:

Year ended 30 June 2017
"Available-for-sale" investments	5,386,177	-	5,386,177
Provisions and accrued expenses	1,652,868	-	1,652,868
Equity accounted income	9,576,342	-	9,576,342
Intangible assets	21,000	-	21,000
Gain on acquisition	405,247	-	405,247
Deferred tax liabilities not recognised	(11,068,898) ────────	- ────────	(11,068,898) ────────
	5,972,736 ══════════	- ══════════	5,972,736 ══════════
Year ended 30 June 2016
"Available-for-sale" investments	7,704,994	-	7,704,994
Receivables	10,416	-	10,416
Equity accounted income	11,464,940	-	11,464,940
Intangible assets	21,000	-	21,000
Gain on acquisition	405,247	-	405,247
Other	366	-	366
Deferred tax liabilities not recognised	(18,552,886) ────────	- ────────	(18,552,886) ────────
	1,054,077 ══════════	- ══════════	1,054,077 ══════════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 6: INCOME TAX (CONTINUED)

6.6 Tax Consolidation

The controlled entities of the Company implemented the tax consolidation legislation as at 30 June 2003. Members of the group have entered into a tax sharing agreement that provides for the allocation of income tax liabilities to subsidiaries in the event the tax liability is not paid.

The entities in the consolidated group continue to account for their own current and deferred tax amounts. The members of the tax consolidated group has applied the "stand-alone taxpayer" approach in determining the appropriate amount of current taxes and deferred taxes to be allocated to members of the tax consolidated group.

In addition to its own current and deferred tax amounts, the Company recognises the current tax liabilities (or assets) from controlled entities in the tax consolidated group. To the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised the Company recognises the deferred tax assets from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group.

Members of the tax consolidated group have entered into a tax funding agreement. Under the funding agreement the allocation of tax within the group is calculated as if each entity was an individual entity for tax purposes. Unless agreed between the members the tax funding agreement requires payment as a result of the transfer of tax amounts.

NOTE 7: EARNINGS PER SHARE

	2017	2016
	\$	\$
Basic and diluted earnings per share
From continuing operations attributable to the members of the parent entity	0.1993	0.0948
From discontinued operations attributable to the members of the parent entity	0.0308 ─────────	0.0206 ─────────
Total basic and diluted earnings per share attributable to the members of the parent
entity	0.2301	0.1154
Reconciliation of earnings used in the calculation of earnings per share:
Profit after income tax from continuing operations	24,269,731	11,099,548
(Less)/plus: non-controlling interest in continuing operations	(444,825) ─────────	232,583 ─────────
Net profit from continuing operations attributable to members of the parent entity	23,824,906 ─────────	11,332,131 ─────────
Profit after income tax from discontinued operation	5,187,680	3,950,635
Less: non-controlling interest in discontinued operation	(1,511,232) ─────────	(1,484,372) ─────────
Net profit from discontinued operation attributable to members of the parent entity	3,676,448 ─────────	2,466,263 ─────────
Net profit attributable to members of the parent entity	27,501,354 ════════	13,798,394 ════════
	Number of Shares
Weighted average number of ordinary shares – Basic and Diluted	119,532,788	119,532,788
Number of shares on issue at the end of the year	119,532,788	119,532,788
	════════	════════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 8: DIVIDENDS

Dividends proposed or paid and not provided for in previous years by the Company are: Declared during the financial year and included within the statement of changes in equity:

	Cents Per Share	Total \$	Date of Payment	Tax rate for Franking Credit	Percentage Franked
2017 Interim dividend on ordinary shares	5.00	5,976,640	8 March 2017	30%	100%
2017 Special dividend on ordinary shares	10.00	11,953,279	14 December 2016	30%	100%
2016 Final dividend on ordinary shares	5.00	5,976,639	15 September 2016	30%	100%
2016 Interim dividend on ordinary shares	5.00	5,976,639	8 March 2016	30%	100%
2015 Final dividend on ordinary shares	3.00	3,585,984	11 September 2015	30%	100%

Declared after the end of the financial period and not included in the statement of financial position:

A final dividend in respect of the year ended 30 June 2017 of 8 cents per share was declared on 21 August 2017 to be paid on 6 September 2017 to those shareholders registered on 25 August 2017.

	The Company
	2017	2016
	\$	\$
Dividend franking account
Franking credits available to shareholders for subsequent financial years	9,713,337 ════════	12,555,079 ════════

The franking account is stated on a tax paid basis. The balance comprises the franking account at year-end adjusted for:

(a) franking credits that will arise from the payment of the amount of the provision for income tax

(b) franking debits that will arise from the refund of overpaid tax instalments paid

(d) franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date

(e) franking credits that the entity may be prevented from distributing in subsequent years.

The ability to utilise the franking credits is dependent upon there being sufficient available profits to declare dividends.

NOTE 9: LOANS AND OTHER RECEIVABLES

Current
Trade receivables	841,041	11,316,274
Allowance for impairment loss	-	(65,841)
Amounts due from customers for contract work	-	4,122,719
Other receivables and prepayments	2,563,710	663,569
Loans to associated entities	7,378,266	12,811,326
Loans to other corporations	18,893,021	51,847,589
	───────	───────
	29,676,038	80,695,636
	═══════	═══════

Trade and other receivables includes a retention of \$4,122,719 relating to a construction contract in progress for financial year ended 30 June 2016.

Non-current

Loans to associated entities	14,462,408	17,257,809
Impairment of loans to associated entities	(1,829,206)	-
Loans to other corporations	8,633,937	4,467,686
	─────── 21,267,139	─────── 21,725,495
	═══════	═══════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 9: LOANS AND OTHER RECEIVABLES (CONTINUED)

9.1 Trade receivables

Trade receivables are non-interest bearing and are generally on 3 - 30 day terms. A provision for impairment loss is recognised when there is objective evidence that an individual trade receivable is impaired and not recoverable within the terms of the insurance policy.

	2017	2016
	\$	\$
Movements in the provision for impairment loss were as follows:
Carrying amount at the beginning of the year	65,841	104,486
Receivables written off during the year as uncollectible	-	(82,647)
Provision for impairment recognised during the year	-	44,002
Disposal through sale of controlled entities	(65,841)	-
	────────	────────
Carrying amount at the end of the year	-	65,841
	════════	════════

The ageing analysis of the trade receivables is as follows:

	Total	Not past	0 – 30	31 – 60	61 – 90	+91	+60
		due	days (PDNI)	days (PDNI)	days (PDNI)	days (PDNI)	days (CI)
	\$	\$	\$	\$	\$	\$	\$
Closing balance - 2017	841,041	314,700	4,707	7,512	4,707	509,415	-
Closing balance - 2016	11,316,274	10,134,274	257,000	249,000	110,000	500,000	66,000
	═══════	═══════	═══════	═══════	═══════	═══════	═══════

PDNI – Past due not impaired CI – Considered impaired

9.2 Loans

When an entity does not pay a scheduled payment of principal and interest or management consider that there has been an adverse change in the underlying value of assets securing the loan a review is conducted to determine if the loan is considered to be impaired. Impairment of loans to related entities and other corporations has been determined after reviewing the underlying assets supporting the loans and the history of making payments to reduce both the principle and interest outstanding.

	2017	2016
	\$	\$
Movements in the provision for impairment loss were as follows:
Carrying amount at the beginning of the year	-	1,506,487
Charge for the year	1,829,206	753,202
Loan written off during the year as uncollectible	- ────────	(2,259,689) ────────
Carrying amount at the end of the year	1,829,206	-
	════════	════════

Further details of loans are set out in notes 33 and 36.

9.3 Construction contract

On the balance sheet, CVC reports the net contract position as an asset. A contract represents an asset where costs incurred plus recognised profits (less recognised losses) exceed progress billings. The net balance sheet position for ongoing construction contract relates to:

The aggregate costs incurred and recognised profits (less recognised
losses) to date	-	32,872,733
Less: Progress billings	- ────────	(28,750,014) ────────
Net balance sheet position for ongoing contracts	- ════════	4,122,719 ════════

Measurement of construction contract revenue and expense

CVC uses the 'percentage-of-completion method' to determine the appropriate amount to recognise in a given period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

	2017	2016
	\$	\$
NOTE 10: FINANCIAL ASSETS – "AVAILABLE-FOR-SALE"
Non-current
Shares in listed corporations – at market value	46,873,395	58,338,703
Other investments – at cost	3,388,875	8,771,869
Impairment of other investments – at cost	(421,000)	(250,000)
Public unlisted investments – at market value	1,328,968	1,381,992
Other investments – at market value	5,232,344 ───────	1,088,937 ───────
	56,402,582 ════════	69,331,501 ════════

Where there has been a reduction in the share price of an investment that appears to be prolonged or significant management have made an assessment as to whether impairment is required. Impairment of investments has been determined with reference to either a recent share price where an active market exists, discounted cash flow analysis, earnings multiples or underlying net assets. Management assesses the results to determine the most appropriate valuation.

10.1 Shares in listed corporations – at market value

The carrying value of certain investments classified as "Shares in listed corporations – at market value" has been determined by using the fair value approach. The closing "bid-price" was determined to be an appropriate indication for the fair value of the investment.

Significant share holdings are held in Bionomics Limited, Cellnet Group Limited, Cyclopharm Limited, Heritage Brands Ltd, Lantern Hotel Group, Mitchell Services Limited, Prime Media Group Limited, 360 Capital Total Return Fund, Universal Biosensors Inc. and Vita Life Sciences Limited. The number of shares held is greater than what would reasonably be considered to be liquid. The closing "bid-price" was determined to be an appropriate indication for the fair value of the investment. Refer note 36.5.

10.2 Other investments – at cost

The carrying value of certain investments classified as "Other investments – at cost" has been determined by using an asset based methodology approach less transaction costs based on the most recent audited financial report. The determination of the fair value has resulted in an impairment allowance of \$421,000 (2016: \$250,000).

10.3 Public unlisted investments – at market value

The carrying value of certain investments classified as "Public unlisted investments – at market value" has been determined by using the fair value approach. The closing "redemption-price" for the Concise Mid Cap Fund was determined to be an appropriate indication for the fair value of the investment.

10.4 Other investments – at market value

The carrying value of certain investments classified as "Other investments – at market value" of \$5,232,344 (2016: \$1,088,937) has been determined by using the fair value approach. The most recent capital raising undertaken was considered to an appropriate indication for the fair value of the investment.

NOTE 11: ASSETS CLASSIFIED AS HELD FOR SALE

Non-current assets held for sale

Shares in unlisted corporation - 12,916,653

════════ ════════

In June 2016, the directors of CVC decided to sell its shareholding in Green's Foods Holdings Pty Limited. The sale was finalised in September 2016. The holding is presented within total assets of the Private Equity and Venture Capital segment in note 31.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

	2017	2016
	\$	\$
NOTE 12: FINANCIAL ASSETS – "AT FAIR VALUE THROUGH PROFIT OR LOSS"
Current
Shares in listed corporations – at market value	15,309,160 ════════	2,489,914 ════════
Non-current
Shares in listed corporations – at market value	5,034,187	-
	════════	════════

The carrying value of investments classified as "Shares in listed corporations – at market value" has been determined by using the fair value approach. The closing "bid-price" was determined to be an appropriate indication for the fair value of the investment.

Significant share holdings are held in US Residential Fund. The number of shares held is greater than what would reasonably be considered to be liquid. The closing "bid-price" was determined to be an appropriate indication for the fair value of the investment. Refer note 36.5.

NOTE 13: INVENTORIES

Current
Stock on hand	-	9,455,086
Provision for obsolescence	-	(487,051)
Land development sites held for resale	6,621,201 ───────	5,314,461 ───────
Total inventories at the lower of cost and net realisable value	6,621,201 ════════	14,282,496 ════════
Non-current
Land development sites held for resale	15,758,428 ════════	10,860,450 ════════

Inventories recognised as an expense for the year ended 30 June 2017 totalled \$36,774,690 (2016: \$61,202,205). This expense has been included in the Statement of Financial Performance.

NOTE 14: OTHER ASSETS

	2017 \$	2016 \$	2016
Current	186,764	140,215
Prepayments and deposits	════════	════════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	2017	2016
	\$	\$
Non-current
Equity accounted interests in joint ventures	3,244,407	3,486,434
Equity accounted shares in listed associated companies	12,477,997	-
Equity accounted shares in other associated companies	18,117,445 ───────	1,876,938 ───────
	33,839,849 ════════	5,363,372 ═══════

Management have reviewed the recoverable amount of investments to determine whether an impairment is required. The amount of any impairment has been determined after consideration of the recoverable amount of the investments, being a recent share price where an active market exists, or alternative valuation methodologies from a review of the operations and assets of the company where an active market does not exist. Management assesses the results to determine the most appropriate valuation.

- 79 Logan Road Trust

The carrying value of 79 Logan Road Trust has been calculated as \$3,360,092 based on the net asset backing methodology, using the most recent reports provided by the company. Refer note 36.6.

- Concise Asset Management Limited

The carrying value of Concise Asset Management Limited has been calculated as \$1,016,683 based on the net asset backing methodology, using the most recent reports provided by the company. Refer note 36.6.

- Donnybrook JV Pty Ltd

The carrying value of Donnybrook JV Pty Ltd has been calculated as \$8,098,961 based on the net asset backing methodology, using the most recent reports provided by the company. Refer note 36.6.

- Eildon Capital Limited

The carrying value of Eildon Capital Limited ("EDC") has been calculated at \$12,477,997. It has been determined by using the fair value approach. The closing "bid-price" of EDC on 30 June 2017 was \$1.05 per share which was determined to be an appropriate indication for the fair value of the investment, despite the lack of an active market. Refer note 36.5 and note 36.7.

- Eildon Funds Management Limited

The carrying value of Eildon Funds Management Limited has been calculated as \$73,013 based on the net asset backing methodology, using the most recent reports provided by the company. Refer note 36.6.

- JAK Investment Group Pty Limited

The carrying value of JAK Investment Group Pty Limited has been calculated as \$182,330 based on the net asset backing methodology, using the most recent reports provided by the trust. Refer note 36.6.

- LAC Unit Trust

The carrying value of LAC Unit Trust has been calculated as \$659,010 based on the net asset backing methodology, using the most recent reports provided by the company. Refer note 36.6.

- MAKE EBRB Dev Nominee Pty Ltd

The carrying value of MAKE EBRB Dev Nominee Pty Ltd has been calculated as \$3,244,407 based on the net asset backing methodology, using the most recent reports provided by the company. Refer note 36.6.

- South Pack Laboratories (Aust) Pty Ltd

The carrying value of South Pack Laboratories (Aust) Pty Ltd has been calculated as \$4,483,171 based on the net asset backing methodology, using the most recent reports provided by the company. Refer note 36.6.

- Turrella Property Unit Trust

The carrying value of Turrella Property Unit Trust has been calculated as \$244,000 based on the net asset backing methodology, using the most recent reports provided by the company. Refer note 36.6.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

15.1 Details of material interests in investments accounted for using the equity method are as follows:

		Ownership Interest			Investment Carrying	Dividend
					Amount	Received/Receivable
	Type	Consolidated			Consolidated	Consolidated
		2017	2016	2017	2016	2017	2016
		%	%	\$	\$	\$	\$
Associated entities
79 Logan Road Pty Ltd	Ords	35.0	-	35	-	-	-
79 Logan Road Trust	Ords	35.0	-	3,360,092	-	126,700	-
BioPower Systems Pty Limited	Ords	25.1	25.1	-	-	-	-
Concise Asset Management Limited	Ords	42.0	42.0	1,016,683	1,125,489	336,000	231,000
Donnybrook JV Pty Ltd	Ords	49.0	49.0	8,098,961	-	-	-
Eildon Capital Limited (c)	Ords	39.3	-	12,477,997	-	568,893	-
Eildon Funds Management Limited (c)	Ords	40.0	-	73,013	-	-	-
Green's Foods Holdings Pty Limited (b)	Ords	-	43.5	-	-	-	3,480,788
JAK Investment Group Pty Ltd	Ords	40.0	40.0	182,330	352,654	145,600	261,000
Kingsgrove Property LMC Pty Ltd (a)	Ords	50.0	-	-	-	-	-
Londonderry Road Trust	Ords	30.0	30.0	-	-	-	646,529
LAC Unit Trust	Ords	33.3	33.3	659,010	398,695	-	-
LAC JV Pty Ltd	Ords	33.3	33.3	100	100	-	-
Mooloolaba Wharf Holding Company Pty
Limited (a)	Ords	50.0	50.0	50	-	-	-
South Pack Laboratories (Aust) Pty Ltd	Ords	48.0	-	4,483,171	-	-	-
The Kingsgrove (Vanessa Road) Unit Trust	Ords	25.0	-	-	-	-	-
Turrella Property Unit Trust (a)	Ords	50.0	50.0	244,000	-	-	-
Urban Properties Pty Limited	Ords	33.3	33.3	-	-	-	-
Urban Properties Cairns Pty Limited	Ords	20.0	20.0	-	-	-	-
Urban Properties Centenary Pty Limited	Ords	20.0	20.0	-	-	-	-
Joint Ventures
MAKE 246 EBRB Pty Ltd (a)	Ords	50.0	50.0	-	-	-	-
MAKE EBRB Dev Nominee Pty Ltd (a)	Ords	50.0	50.0	3,244,407 ──────	3,486,434 ──────	- ──────	- ──────
				33,839,849 ══════	5,363,372 ══════	1,177,193 ══════	4,619,317 ══════

(a) Kingsgrove Property LMC Pty Ltd, Turrella Property Unit Trust, Mooloolaba Wharf Holding Company Pty Limited, MAKE EBRB Dev Nominee Pty Ltd and MAKE 246 EBRB Pty Ltd are not considered to be controlled entities of CVC as management of each entity is controlled by the holders of the remaining 50%.

(b) In June 2016, the directors of CVC decided to sell its shareholding in Green's Foods Holdings Pty Limited. The investment was reclassified to Assets Classified as Held for Sale during the 2016 financial year.

(c) Eildon Capital Limited and Eildon Funds Management Limited ceased to be controlled entities and became associates of CVC during the year.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

15.2 Information on investments accounted for using the equity method:

Associated entities
79 Logan Road Pty Ltd	-	trustee of 79 Logan Road Trust.
79 Logan Road Trust	-	a commercial property in Woolloongabba, Queensland with a long term lease to an ASX listed entity, with residential development approval.
BioPower Systems Pty Limited	-	a renewable energy technology company.
Concise Asset Management Limited	-	a boutique fund manager focused on investments in ASX listed entities.
Donnybrook JV Pty Ltd	-	a residential property development in Donnybrook, Victoria.
Eildon Capital Limited	-	an active property investment company which participates in retail, industrial, residential and commercial opportunities.
Eildon Funds Management Limited	-	an investment manager and the holder of a financial services licence.
Green's Foods Holdings Pty Limited	-	an Australian based company producing and distributing household food products.
JAK Investment Group Pty Limited	-	a boutique real estate finance and investment house specialising in the provision of real estate capital solutions.
Kingsgrove Property LMC Pty Ltd	-	trustee of The Kingsgrove (Vanessa Road) Unit Trust.
Londonderry Road Trust	-	a residential property development in Londonderry, New South Wales.
LAC Unit Trust	-	a residential property development in Moorebank, New South Wales.
LAC JV Pty Ltd	-	trustee of LAC Unit Trust.
Mooloolaba Wharf Holding Company Pty Limited	-	the landowner of "The Wharf" Mooloolaba, Parkland Parade and River Esplanade in Mooloolaba, Queensland.
South Pack Laboratories (Aust) Pty Ltd	-	a pharmaceutical contract packaging company.
The Kingsgrove (Vanessa Road) Unit Trust	-	a residential property development in Kingsgrove, New South Wales.
Turrella Property Unit Trust	-	a residential property development in Turrella, New South Wales.
Urban Properties Pty Limited	-	a residential property development in Trinity Beach, Queensland.
Urban Properties Cairns Pty Limited	-	a residential property development in Edmonton, Queensland.
Urban Properties Centenary Pty Limited	-	a residential property development in Manoora, Queensland.
Joint Ventures MAKE 246 EBRB Pty Ltd	-	the landowner of a commercial site at 240-246 East Boundary Rd, East Bentleigh, Victoria. The property is progressing through a re-zoning process for a range of commercial, retail and residential uses.
MAKE EBRB Dev Nominee Pty Ltd	-	the developer of 240-246 East Boundary Rd, East Bentleigh, Victoria .

The reporting date of all the associated entities except Green's Foods Holdings Pty Limited is 30 June. Green's Foods Holdings Pty Limited has a reporting date of 31 December. All entities listed above are Australian.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

15.3 Reconciliations:

Movements in the carrying amount of the investments accounted for using the equity method are as follows:

	Jo int Ve ntu re			As	d e iat nti tie soc e s
		ds Gr 's F een oo			h P k So ut ac	79 Lo an g	nci As Co set se
	MA KE EB RB D ev	ldi Ho s P ty ng	bro k Do nn y o	E i ldo ita l n C ap	bo ies La rat or	d T Ro t a rus	Ma t na g em en	Ot he r E nti tie s
	mi d No e P Lt ty ne	Lim ite d	d ( ) J V P Lt ty c	Lim ite d ( b )	( Au ) d Pty Lt st	( b )	Lim ite d	(a )	l To ta
	\$	\$	\$	\$	\$	\$	\$	\$	\$
Ye de d 3 0 J e 2 017 ar en un
lan he beg f th Ba inn ing at t ce o e y ear	3, 486 434 ,	-	-	-	-	-	1, 125 489 ,	751 449 ,	5, 363 372 ,
d Ne int uir sts ere ac e w q	-	-	-	274 002 ,	3, 840 000 ,	3, 383 325 ,	-	561 881 ,	8, 059 208 ,
Sh f p fits be for e ta are o ro x	( ) 242 027 ,	-	( ) 107 046 ,	591 150 ,	918 816 ,	103 467 ,	324 564 ,	( ) 106 265 ,	1, 482 659 ,
Sh f ta are o x e ens es xp	-	-	-	( ) 177 346 ,	( ) 275 645 ,	-	( ) 97, 370	9, 256	( ) 541 105 ,
Div i den d p ai d	-	-	-	( 568 893 ) ,	-	( 126 700 ) ,	( 336 000 ) ,	( 145 600 ) ,	( 1, 177 193 ) ,
Im air nt me p	-	-	-	( 197 ) 233 ,	-	-	-	-	( 197 ) 233 ,
Re cla ssi fica tio f in tm ent n o ves s	- ── ── ── ─	- ── ── ── ─	8, 206 007 , ── ── ── ─	12, 317 556 , ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	817 87, ── ── ── ─	141 20, 850 , ── ── ── ─
lan he d o f th Ba at t ce en e y ear	3, 244 407 , ══ ══ ══ ═	- ══ ══ ══ ═	8, 098 961 , ══ ══ ══ ═	12, 477 997 , ══ ══ ══ ═	4, 483 171 , ══ ══ ══ ═	3, 360 092 , ══ ══ ══ ═	1, 016 683 , ══ ══ ══ ═	1, 158 538 , ══ ══ ══ ═	33, 839 849 , ══ ══ ══ ═
Ye de d 3 0 J e 2 016 ar en un
lan he beg f th Ba inn ing at t ce o e y ear	-	14, 660 528 ,	-	-	-	-	1, 081 096 ,	528 054 ,	16, 269 678 ,
d Ne int uir sts ere ac e w q	4, 000 000 ,	-	-	-	-	-	-	400 795 ,	4, 400 795 ,
le o f in Sa tm ent ves s	-	-	-	-	-	-	-	( 14, 205 )	( 14, 205 )
Sh f p fits be for e ta are o ro x	( 513 566 ) ,	3, 723 558 ,	-	-	-	-	393 418 ,	1, 322 334 ,	4, 925 744 ,
Sh f ta are o x e ens es xp	-	( 1, 986 645 ) ,	-	-	-	-	( 118 025 ) ,	( 216 000 ) ,	( 2, 320 670 ) ,
den d p d Div i ai	-	( 3, 480 788 ) ,	-	-	-	-	( 231 000 ) ,	( 907 529 ) ,	( 4, 619 317 ) ,
Im air nt me p	-	-	-	-	-	-	-	( 362 000 ) ,	( 362 000 ) ,
cla fica f in Re ssi tio tm ent n o ves s	-	( 12, 916 653 ) ,	-	-	-	-	-	-	( 12, 916 653 ) ,
lan he d o f th Ba at t ce en e y ear	── ── ── ─ 3, 486 434 ,	── ── ── ─ -	── ── ── ─ -	── ── ── ─ -	── ── ── ─ -	── ── ── ─ -	── ── ── ─ 1, 125 489 ,	── ── ── ─ 751 449 ,	── ── ── ─ 5, 363 372 ,

(a) Other entities include JAK Investment Group Pty Ltd, Urban Properties Pty Limited, Turrella Property Unit Trust, Londonderry Road Trust, Eildon Funds Management Limited, Urban Properties Cairns Pty Limited, Urban Properties Centenary Pty Limited, LAC Unit Trust, LAC JV Pty Ltd, Mooloolaba Wharf Holding Company Pty Limited, Kingsgrove Property LMC Pty Ltd, The Kingsgrove (Vanessa Road) Unit Trust, 79 Logan Road Pty Ltd, MAKE 246 EBRB Pty Ltd and BioPower Systems Pty Limited.

(b) 79 Logan Road Trust was reclassified as an associate on 24 February 2017 following the completion of the capital raising and ASX listing of Eildon Capital Limited. This ASX listing of Eildon Capital Limited resulted in CVC's share of the company being reduced from 56% to 38.5%.

(c)Following a review of the terms of the loan facility provided by CVC and Donnybrook JV Pty Limited, it was considered that the loan is considered to be an equity investment.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

15.4 Summarised financial information for investments accounted for using the equity method

The table below provide summarised financial information for those investments accounted for using the equity method that are material to the group. The information disclosed reflects the amounts presented in the financial statements of the relevant investments accounted for using the equity method and not CVC's share of those amounts. They have been amended to reflect adjustments made by the entity when using the equity method, including fair value adjustments and modifications for differences in accounting policy.

	MA KE	EB RB D ev	bro ok Do nn y	Ltd J V P ty			th k L Sou Pac	abo ori rat es			Co nci se	As set	ds Gr 's F een oo	ldi Ho ng s
	No mi ne	e P Ltd ty	(	d)	Eil don Ca ita p	l L im ite d ( b)	( Au st) Pty	Lt d	Lo Ro 79 gan	ad Tru st ( c)	Ma na g em en	t L im ite d	Pty Li mi	ted (a )
	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6
	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$
Su ari sed ba lan she et ce mm
Cu nt ets rre ass	513 443 ,	9, 647	540 551 ,	1, 041 428 ,	27, 004 209 ,	-	4, 388 756 ,	-	141 468 ,	-	1, 597 711 ,	1, 885 995 ,	-	-
Cu liab ilit ies nt rre	134 454 , ── ── ── ─	121 088 , ── ── ── ─	211 056 , ── ── ── ─	379 669 , ── ── ── ─	2, 017 947 , ── ── ── ─	- ── ── ── ─	1, 295 714 , ── ── ── ─	- ── ── ── ─	41, 458 ── ── ── ─	- ── ── ── ─	343 177 , ── ── ── ─	380 579 , ── ── ── ─	- ── ── ── ─	- ── ── ── ─
Cu nt net set rre as s	378 989 ,	( 111 441 ) ,	329 495 ,	661 759 ,	24, 986 262 ,	-	3, 093 042 ,	-	100 010 ,	-	1, 254 534 ,	1, 505 416 ,	-	-
No ent set n-c urr as s	26, 596 359 ,	26, 627 144 ,	26, 948 883 ,	25, 739 064 ,	6, 840 674 ,	-	6, 262 855 ,	-	20, 990 254 ,	-	13, 707	21, 885	-	-
No lia bil itie ent urr n-c s	486 20, 535 , ── ── ── ─	19, 542 835 , ── ── ── ─	10, 749 886 , ── ── ── ─	26, 560 264 , ── ── ── ─	- ── ── ── ─	- ── ── ── ─	15, 958 ── ── ── ─	- ── ── ── ─	11, 490 000 , ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─
No ent t as set urr ne n-c s	6, 109 824 ,	7, 084 309 ,	16, 198 997 ,	( 821 200 ) ,	6, 840 674 ,	-	6, 246 897 ,	-	9, 500 254 ,	-	13, 707	21, 885	-	-
Ne t as set s	── ── ── ─ 6, 488 813 ,	── ── ── ─ 6, 972 868 ,	── ── ── ─ 16, 528 492 ,	── ── ── ─ ( 159 441 ) ,	── ── ── ─ 31, 826 936 ,	── ── ── ─ -	── ── ── ─ 9, 339 939 ,	── ── ── ─ -	── ── ── ─ 9, 600 264 ,	── ── ── ─ -	── ── ── ─ 1, 268 241 ,	── ── ── ─ 1, 527 301 ,	── ── ── ─ -	── ── ── ─ -
cili ati ing Re to con on ca rry am ou	nts :
Op eni s 1 Ju ly t as set ne ng	6, 972 868 ,	-	( ) 159 441 ,	( 205 893 ) ,	-	-	-	-	-	-	1, 527 301 ,	1, 421 605 ,	-	-
Sha ued iss res	-	8, 000 000 ,	-	-	9, 734 428 ,	-	8, 000 000 ,	-	-	-	-	-	-	-
( Lo ss) /pr ofi t fo r th eri od e p	(48 ) 4, 055	( 1, 027 132 ) ,	(58 ) 021 ,	46, 452	1, 063 559 ,	-	1, 339 939 ,	-	295 620 ,	-	540 940 ,	655 696 ,	-	-
Re cla ssi fica tio f inv est nt n o me	-	-	16, 745 954 ,	-	041 771 23, ,	-	-	-	644 9, 666 ,	-	-	-	-	-
ide nd id Div pa	-	-	-	-	(2, ) 012 822 ,	-	-	-	(36 ) 2, 000	-	(80 ) 0, 000	( ) 550 000 ,	-	-
Re f ca ital tur n o p	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─
Clo sin et a ts sse g n	6, 488 813 ,	6, 972 868 ,	16, 528 492 ,	( 159 441 ) ,	31, 826 936 ,	-	9, 339 939 ,	-	9, 600 264 ,	-	1, 268 241 ,	1, 527 301 ,	-	-
	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─

(a)In June 2016, the directors of CVC made a decision to sell its holding in Green's Foods Holdings Pty Limited, and it was reclassified to Assets Classified as Held for Sale.

(b) Eildon Capital Limited was controlled by CVC during the 2016 year. On 24 February 2017 Eildon Capital Limited completed a capital raising and ASX listing which resulted in CVC's share of the company beingreduced from 56% to 38.5%.

(c)Following the reduction in CVC's ownership of Eildon Capital Limited on 24 February 2017, 79 Logan Road Trust was reclassified as an associate.

(d)Following a review of the terms of the loan facility provided by CVC and Donnybrook JV Pty Limited, it was considered that the loan is considered to be an equity investment.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

15.4 Summarised financial information for investments accounted for using the equity method (continued)

	MA KE EB No mi ne	RB D ev e P Ltd ty	bro ok Do nn y ( d)	Ltd J V P ty	Eil don Ca ita p	l L im ite d ( b)	th k L Sou Pac ( Au st) Pty	abo ori rat es Lt d	Lo Ro ad 79 gan	Tru st ( c)	nci Co se Ma ent nag em	As set Li mi ted	Gr 's F een oo Pty Li mi	ds ldi Ho ng s ted (a )
	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6	201 7	201 6
	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$
's s har Gr tag ou p e - per cen e	50%	50%	49%	49%	39%	b) (	48%	-	35%	-	42%	42%	-	-
Gr 's s har do llar ou e - p s	244 407 3, ,	3, 486 434 ,	961 8, 098 ,	-	12, 412 505 ,	-	4, 483 171 ,	-	3, 360 092 ,	-	661 532 ,	641 466 ,	-	-
Ad jus ted rke alu to t v ma e	-	-	-	-	65, 492	-	-	-	-	-	484 022 ,	484 022 ,	-	-
Dis uis itio nt cou on acq n	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─
Ca ing t rry am oun	3, 244 407 , ── ── ── ─	3, 486 434 , ── ── ── ─	8, 098 961 , ── ── ── ─	- ── ── ── ─	12, 477 997 , ── ── ── ─	- ── ── ── ─	4, 483 171 , ── ── ── ─	- ── ── ── ─	3, 360 092 , ── ── ── ─	- ── ── ── ─	1, 016 683 , ── ── ── ─	1, 125 488 , ── ── ── ─	- ── ── ── ─	- ── ── ── ─
Su ari sed of sta tem ent co mm mp	reh ive in ens com	e
Re ven ue	2, 035 452 ,	882 206 ,	120 689 ,	48, 298	1, 854 563 ,	-	4, 931 361 ,	-	000 575 ,	-	2, 447 852 ,	2, 811 156 ,	-	210 552 000 , ,
( ss) /pr ofi t fo r th eri od Lo e p	(48 ) 4, 055	( ) 1, 027 132 ,	(58 ) 021 ,	( ) 46, 452	1, 063 559 ,	-	1, 339 939 ,	-	295 620 ,	-	540 940 ,	655 696 ,	-	3, 991 999 ,
Oth hen siv e in er com pre com e	-	-	-	-	-	-	-	-	-	-	-	-	-	-
To tal reh ive in co ens com e mp	── ── ── ─ (48 4, ) 055	── ── ── ─ ( 1, 027 132 ) ,	── ── ── ─ (58 021 ) ,	── ── ── ─ ( 46, 452 )	── ── ── ─ 1, 063 559 ,	── ── ── ─ -	── ── ── ─ 1, 339 939 ,	── ── ── ─ -	── ── ── ─ 295 620 ,	── ── ── ─ -	── ── ── ─ 540 940 ,	── ── ── ─ 655 696 ,	── ── ── ─ -	── ── ── ─ 3, 991 999 ,
Div ide nd cei ved s re	── ── ── ─ -	── ── ── ─ -	── ── ── ─ -	── ── ── ─ -	── ── ── ─ 568 893 ,	── ── ── ─ -	── ── ── ─ -	── ── ── ─ -	── ── ── ─ 126 700 ,	── ── ── ─ -	── ── ── ─ 336 000 ,	── ── ── ─ 231 000 ,	── ── ── ─ -	── ── ── ─ 3, 480 788 ,
	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─

(a)In June 2016, the directors of CVC made a decision to sell its holding in Green's Foods Holdings Pty Limited, investment was reclassified to Assets Classified as Held for Sale.

(c)Following the reduction in CVC's ownership of Eildon Capital Limited on 24 February 2017, 79 Logan Road Trust was reclassified as an associate.

(d)Following a review of the terms of the loan facility provided by CVC and Donnybrook JV Pty Limited, it was considered that the loan is considered to be an equity investment.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

15.5 Individually immaterial investments accounted for using the equity method

In addition to the interests in investments accounted for using the equity method disclosed above, the group also has interests in a number of individually immaterial investments that are accounted for using the equity method.

	2017 \$	2016 \$
Aggregate carrying amount of individually immaterial
investments accounted for using the equity method	1,158,538	751,449
Aggregate amounts of CVC's share of: (Loss)/profit for the period	(97,009) ───────	1,106,334 ───────
Total comprehensive income	(97,009) ═══════	1,106,334 ═══════
NOTE 16: PROPERTY, PLANT AND EQUIPMENT
16.1 Total property, plant and equipment	397,403 ═══════	581,157 ═══════
Comprises: Plant and equipment
At cost	279,175	1,390,721
Accumulated depreciation	(95,360) ───────	(896,546) ───────
	183,815 ═══════	494,175 ═══════
Leasehold improvements
At cost	200,844	319,954
Accumulated depreciation	(14,256) ───────	(259,972) ───────
	186,588 ═══════	59,982 ═══════
Properties
At cost	27,000 ═══════	27,000 ═══════
16.2 Reconciliation Plant and equipment
Carrying amount at the beginning of the year	494,175	701,161
Additions	76,812	143,088
Depreciation	(119,646)	(300,089)
Impairment	-	(49,985)
Disposal of plant and equipment arising from disposal of controlled entity	(267,526) ───────	- ───────
Carrying amount at the end of the year	183,815 ═══════	494,175 ═══════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

	2017	2016
	\$	\$
NOTE 16: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
16.2 Reconciliation (continued)
Leasehold improvements
Carrying amount at the beginning of the year	59,982	242,717
Addition	200,844	-
Depreciation	(74,238)	(182,735)
	───────	───────
Carrying amount at the end of the year	186,588	59,982
Properties	═══════	═══════
Carrying amount at the beginning and end of the year	27,000	27,000
	═══════	═══════

NOTE 17: INVESTMENT PROPERTIES
Investment properties (note 34) Non-current	8,578,697	13,159,852
	═══════	═══════
Comprises:
Leased properties	1,350,000	2,000,000
Development properties	7,228,697 ───────	11,159,852 ───────
	8,578,697	13,159,852
	═══════	═══════
Reconciliation:
Investment properties at the beginning of the year	13,159,852	16,597,069
Additions – acquisition of properties	20,294,951	5,350,000
Additions – capital expenditure	1,353,626	1,307,375
Reclassification to construction contract	-	(1,894,592)
Reclassification to inventory	(4,330,691)	-
Carrying value of investment property sold	-	(8,200,000)
Disposal of properties arising from disposal of controlled
entity	(20,967,926)	-
Impairment	(931,115) ───────	- ───────
Carrying amount at the end of the year	8,578,697	13,159,852
	═══════	═══════
Amounts recognised in comprehensive income
Rental income	343,946	161,533
Outgoing recovery	26,579	10,625
Direct operating expenses from property that generated rental
income	27,856	29,927

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 17: INVESTMENT PROPERTIES (CONTINUED)

17.1 Leased properties

	2017	2016
	\$	\$
423 – 479 Pumicestone Road, Caboolture	1,350,000 ═══════	2,000,000 ═══════

The fair value has been determined based on an independent valuation prepared by JLL Hotels & Hospitality Group.

	Weighted average
	2017	2016
Capitalisation rate	10.16%	6.66%
Lease expiry	1.33 years	2.33 years
Occupancy	100%	100%
	2017	2016
	\$	\$
17.2 Others
Non-current
Investment properties	7,228,697 ═══════	9,809,852 ═══════
The fair value has been determined by Directors as an estimate based on costs incurred to 30 June 2017.
NOTE 18: INTANGIBLE ASSETS
Intangible assets	-	52,435
	═══════	═══════
Reconciliations:
Intangible assets
Carrying amount at the beginning of the year	52,435	26,816
Additions	7,738	44,138
Amortisation	(14,915)	(18,519)
Disposal through sale of controlled entities	(45,258) ───────	- ───────
Carrying amount at the end of the year	-	52,435
	═══════	═══════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

	2017	2016
	\$	\$
NOTE 19: TRADE AND OTHER PAYABLES
Current
Trade and other payables	1,126,198	6,053,586
Sundry creditors and accruals	7,025,473 ───────	6,443,840 ───────
	8,151,671 ═══════	12,497,426 ═══════
NOTE 20: PROVISIONS
Current
Employee entitlements	773,334 ═══════	1,184,514 ═══════
Non-Current
Employee entitlements	18,825 ═══════	121,006 ═══════
NOTE 21: INTEREST BEARING LOANS AND BORROWINGS
Current
Secured loan	12,679,439	2,405,000
Trade finance facility	- ───────	762,951 ───────
	12,679,439 ═══════	3,167,951 ═══════
Non-Current
Secured loans	-	11,465,241
Unsecured loan from associated entity	10,123,967 ───────	10,105,812 ───────
	10,123,967	21,571,053
	═══════	═══════

21.1 Secured Loans

The secured loans are secured by a first ranking mortgage over the applicable property.

	Facility Amount \$
Security
Lot 11 Richards Road, Riverstone New South Wales	12,679,439

The carrying value of the security provided includes \$11,427,737 (2016: \$10,860,450) of properties classified as inventories (note 13).

21.2 Trade finance facility

The trade finance facility is secured by way of a fixed and floating charge over the operations of Cellnet Group Limited.

21.3 Unsecured loan from associated entity

This loan is an unsecured loan from Winten (No. 20) Pty Limited at an interest rate of 6.5% per annum repayable by 19 July 2019.

NOTE 22: DERIVATIVE FINANCIAL INSTRUMENTS

	2017	2016
	\$	\$
Current asset
Forward foreign exchange contracts	-	143,000
	═══════	═══════

Changes in the fair value of forward exchange contracts that economically hedge monetary assets and liabilities in foreign currencies are recognised in net income. Both the changes in fair value of the forward contracts and the foreign exchange gains and losses relating to the monetary items are recognised in net realised foreign exchange gain/(loss) in the Statement of Financial Performance.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 23: CONTRIBUTED EQUITY

	The Company
	2017		2016
	Number	\$	Number	\$
Issued and paid-up ordinary share capital
Balance at the beginning and end of the year	119,532,788	103,646,848	119,532,788	103,646,848
	═══════	═══════	═══════	═══════

On 28 November 2016 CVC received approval from shareholders to undertake an on-market share buy-back scheme for a duration of 12 months and limited to 20,000,000 ordinary shares. At the date of this report no shares had been bought back under this scheme.

		2017	2016
		\$	\$
NOTE 24:	RETAINED EARNINGS
	Retained earnings at the beginning of the year	72,766,639	68,530,868
	Net profit attributable to members of the parent company	27,501,354	13,798,394
Dividends		(23,906,558)	(9,562,623)
Share based payment		(1,241,925)	-
Transfer from reserve		5,511,741 ───────	- ───────
	Retained earnings at the end of the year	80,631,251 ═══════	72,766,639 ═══════
NOTE 25:	NON-CONTROLLING INTEREST
	Reconciliation of non-controlling interest in controlled entities:
	Balance at the beginning of the year	12,311,226	15,145,337
Share of net profit		1,956,057	1,251,789
	Acquisition of interests in controlled entities	(19,624)	(4,461,055)
	Disposal of shares by non-controlling interest in controlled entities	(12,201,030)	1,750,727
Return of capital		(1,000,000)	(500,000)
Dividends paid		(843,552)	(1,195,336)
Share based payment		102,684	293,369
	Revaluation of investments	(18,981) ───────	26,395 ───────
	Balance at the end of the year	286,780 ═══════	12,311,226 ═══════
	The non-controlling interest at the end of the year comprises interests in:
Share capital		948,949	19,679,146
Other reserves		2,048	663,408
Accumulated losses		(664,217) ───────	(8,031,328) ───────
		286,780 ═══════	12,311,226 ═══════

Refer to note 2.3 for more information.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 26: OTHER RESERVES

	Asset Revaluation Reserve \$	Employee Equity Benefit Reserve \$	Foreign Exchange Translation Reserve \$	Total \$
Year ended 30 June 2017
Reserves at the beginning of the year	19,103,188	5,367,223	323,857	24,794,268
Share based payments	-	(5,367,223)	-	(5,367,223)
Net unrealised loss on investments through reserves	(1,375,903)	-	(261,614)	(1,637,517)
Net unrealised loss on "available-for-sale"
investments – non-controlling interest	372	-	295	667
Acquisition of non-controlling interest	1,264	-	-	1,264
Disposal of non-controlling interest	(253,686)	-	-	(253,686)
Realised profit on "available-for-sale" investments
transferred to profit and loss	(1,972,413)	-	75,373	(1,897,040)
Realised (profit)/loss on "available-for-sale" investments transferred to profit and loss – non
controlling interest	16,058	-	2,256	18,314
Income tax on items taken directly to or from
equity	(2,988,613)		(42,051)	(3,030,664)
Transfer to retained earnings	1,241,925	-	-	1,241,925 ───────
Reserves at the end of the year	─────── 13,772,192	─────── -	─────── 98,116	13,870,308
	═══════	═══════	═══════	═══════
Year ended 30 June 2016
Reserves at the beginning of the year	7,585,634	5,981,880	(31,783)	13,535,731
Share based payments	-	(614,657)	-	(614,657)
Net unrealised gain on investments through
reserves	15,262,763	-	374,537	15,637,300
Net unrealised gain on "available-for-sale"
investments – non-controlling interest Acquisition of non-controlling interest	(2,190) (525,780)	- -	(18,897) -	(21,087) (525,780)
Disposal of non-controlling interest	(625,510)	-	-	(625,510)
Realised profit on "available-for-sale" investments
transferred to profit and loss	(2,586,421)	-	-	(2,586,421)
Realised loss on "available-for-sale" investments
transferred to profit and loss – non-controlling
interest	(5,308) ───────	- ───────	- ───────	(5,308) ───────
Reserves at the end of the year	19,103,188 ═══════	5,367,223 ═══════	323,857 ═══════	24,794,268 ═══════

26.1 Asset Revaluation Reserve

The asset revaluation reserve includes the movement in the fair value of investments to the extent that they offset one another and CVC's share of the unrealised change in value arising from the acquisition and disposal of a non-controlling interest in a controlled entity by CVC.

26.2 Employee Equity Benefit Reserve

The employee equity benefits reserve is used to record the value of share based payments for CVC and associated entities provided to employees, including key management personnel, as part of their remuneration.

26.3 Foreign Exchange Translation Reserve

The foreign exchange translation reserve includes exchange differences arising on translation of foreign entities where their functional currency is different to the presentation currency of CVC.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 27: NOTES TO STATEMENT OF CASH FLOWS

27.1 Reconciliation of Cash and Cash Equivalents

For the purposes of the statement of cash flows, cash includes cash on hand and at bank and short-term deposits at call. Cash as 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:

	2017	2016
	\$	\$
Cash on deposit	41,318,951	20,371,525
Funds held by bank (note 30)	427,765 ───────	1,301,525 ───────
Cash and cash equivalents	41,746,716 ═══════	21,673,050 ═══════

27.2 Reconciliation of Profit after Income Tax to Cash provided by Operating Activities

Net profit	29,457,411	15,050,183
Add/(less) non-cash items:
Share of equity accounted profits	(941,554)	(2,605,074)
Depreciation of property, plant and equipment	208,799	482,824
Amortisation of intangibles	-	18,519
Bad debt	-	43,086
Change in fair value of investment properties	931,115	-
Impairment of property, plant and equipment	-	49,985
Impairment expenses on financial instruments	2,475,624	5,993,843
Impairment recoveries on financial instruments	(9,794,635)	(13,840,567)
(Profit)/loss on disposal of investments	(17,081,574)	10,764,969
Net foreign currency differences	20,398	(697,616)
Non-cash employee benefits expense-share based payments	247,201	(321,288)
Non-cash finance cost	751,273	-
Interest income not received	(2,536,575)	(3,246,105)
Interest expense not paid	1,032,272	661,620
Dividend income	(971,307)	1,180,855
Movement in current tax liabilities	3,739,477	1,599,822
Movement in deferred tax assets and liabilities	(2,898,900)	(1,068,119)
Changes in operating assets and liabilities:
Inventories	(3,675,575)	420,734
Financial assets at fair value through profit or loss	(17,196,945)	(104,085)
Trade and other receivables	(6,517,190)	7,181,180
Trade and other payables	6,265,277	3,133,387
Provisions	96,467	33,325
Other assets	(88,450) ───────	97,821 ───────
Net cash (used in)/provided by operating activities	(16,477,391)	24,829,299
	═══════	═══════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 27: NOTES TO THE CASH FLOW STATEMENTS (CONTINUED)

	2017	2016
	\$	\$
27.3 Financing Facilities
At 30 June 2017, CVC had access to the following specific lines of credit.
Total facilities available:
Secured bank loan	12,679,439	22,772,510
	═══════	═══════
Total facilities used:
Secured bank loan	12,679,439	13,167,951
	═══════	═══════

NOTE 28: DISCONTINUED OPERATIONS

28.1 Description

On 24 February 2017 Eildon Capital Limited successfully completed a capital raising of \$10 million. This had the effect of reducing CVC's ownership from 56.0% to 38.5% and resulted in the deconsolidation of Eildon Capital Limited's operations from the group.

Following the reduction in CVC's ownership of Eildon Capital Limited on 24 February 2017, 79 Logan Road Trust was reclassified as an associate.

On 22 December 2016 CVC sold 83% of its holding in Cellnet Group Limited for a consideration of \$7,057,568.

On 16 November 2016 CVC sold 60% of its holding in Eildon Funds Management Limited for a consideration of \$420,000.

28.2 Financial performance and cash flow information

The financial performance and cash flow information presented are for the period ended 24 February 2017 and the year ended 30 June 2016.

	24 Feb 2017	2016
	\$	\$
Revenue	46,864,823	78,962,054
Expenses	(42,061,500) ───────	(74,945,649) ───────
Profit before income tax	4,803,323	4,016,405
Income tax expense	(1,130,499)	(65,770)
Profit after income tax of discontinued operation	─────── 3,672,824	─────── 3,950,635
Loss on sale of the subsidiaries before income tax	(1,065,896)	-
Income tax benefit	2,580,752 ───────	- ───────
Gain on sale of the subsidiaries after income tax	1,514,856 ───────	- ───────
Profit from discontinued operation	5,187,680	3,950,635
Attributable to	═══════	═══════
Shareholders	3,676,448	2,466,263
Non-controlling interest	1,511,232	1,484,372
	─────── 5,187,680 ═══════	─────── 3,950,635 ═══════
Net cash (outflow)/inflow from operating activities	(7,443,519)	5,344,879
Net cash inflow/(outflow) from investing activities (includes a
net outflow of \$1,368,382 (2017) from the sale of the subsidiaries)	1,112,202	(6,992,640)
Net cash inflow/(outflow) from financing activities	12,010,755 ───────	(6,431,925) ───────
Net increase/(decrease) in cash generated by the subsidiaries	5,679,438	(8,079,686)

═══════ ═══════

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 28: DISCONTINUED OPERATION (CONTINUED)

28.3 Details of the sale of the subsidiaries
	\$
Carrying value of assets and liabilities as at the date of sale
Cash and other assets	8,845,950
Loan and other receivables	35,433,672
Inventories	13,231,096
Investments accounted for using the equity method	3,383,710
Investment properties	20,967,926
Other assets	1,913,478 ─────────
Total assets	83,775,832
Trade creditors	(13,694,393)
Interest bearing loans and borrowings	(20,172,317)
Other liabilities	(2,425,504) ─────────
Total liabilities	(36,292,214) ─────────
Other reserves	731,860
Non-controlling interest	(18,815,754) ─────────
Net assets sold	29,399,724 ═════════
Consideration	7,477,568
Fair value of the remaining shares	20,856,260
Carrying amount of net assets sold	(29,399,724)
Loss on sale before income tax	───────── (1,065,896)
Income tax benefit	2,580,752
Gain on sale after income tax	1,514,856
	───────── ═════════

NOTE 29: AUDITORS' REMUNERATION

	2017	2016
	\$	\$
The auditor of the Company is HLB Mann Judd.
Amounts received or due and receivable to Auditors of the Company:
Audit or review of the financial report	174,500 ════════	217,787 ════════
Non-audit services – other assurance services	20,900 ════════	- ════════
Amounts received or due and receivable by non HLB Mann Judd audit firms for:
Audit or review of the financial report	66,816 ════════	131,123 ════════

The Auditors received no other benefits.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

	2017	2016
NOTE 30: COMMITMENTS AND CONTINGENCIES	\$	\$
30.1 Operating Lease Commitments
Non-cancellable operating lease expense
Commitments – CVC Limited and its 100% subsidiaries
Future operating lease commitments not provided for in the
financial statements and payable:
- within one year	565,250	100,309
- later than one year but not later than five years	2,501,307	4,770
- later than five years	1,124,242 ───────	- ───────
	4,190,799 ═══════	105,079 ═══════
Commitments – Cellnet Group Limited (a)
Future operating lease commitments not provided for in the
financial statements and payable:
- within one year	-	390,000
- later than one year but not later than five years	-	339,000
	─────── -	─────── 729,000
	═══════	═══════

(a) Cellnet Group Limited ceased to be a controlled entity of CVC during the year.

30.2 Operating leases - leases as lessor

An investment property is leased to a tenant under an operating lease with rentals payable monthly. The remaining lease terms are on average 1.33 years (2016: 2.33 years), excluding options for lease extensions upon completion of the lease term.

The future minimum lease payments under non-cancellable leases are as follows:

Less than one year Between one and five years	139,993 47,114 ───────	135,894 187,085 ───────
	187,107 ═══════	322,979 ═══════

Refer to note 17.1 for more information.

30.3 Financial Guarantees

Bank Guarantees

The Directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.

CVC Limited and its 100% subsidiaries

Bank guarantee (a)	427,765	1,264,525
Guarantee (b)	5,497,800	5,497,800
Guarantee (c)	2,500,000	-
	═══════	═══════
Commitments – Cellnet Group Limited (d)
Bank guarantee	-	37,000
	═══════	═══════

(a) The bank guarantee provided by CVC is secured by a fixed and floating charge.

(b) The guarantee provided by CVC to National Australia Bank Limited is used as security for a loan facility in relation to 960- 1000 Donnybrook Victoria.

(c) The guarantee provided by CVC to National Australia Bank Limited is used as security for a loan facility and is secured by an interest in the Marsden Park Development Trust and other additional security.

(d) Cellnet Group Limited ceased to be a controlled entity of CVC during the year.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

		2017	2016
		\$	\$
NOTE 30:	COMMITMENTS AND CONTINGENCIES (CONTINUED)

30.4 Capital Commitments

Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

Investment property
Less than one year	2,205,000 ═══════	- ═══════
30.5 Options
Exposure on open written option positions.
Puts
Later than 2 months but not more than 6 months	1,185,600 ═══════	390,300 ═══════
Covered Calls
Later than 2 months but not more than 6 months	1,897,200 ═══════	690,000 ═══════
30.6 Loans and other investments
Amounts available to be drawn by borrowers under existing loan facility agreements
Related entities	9,564,464	5,013,969
Unrelated entities	6,330,764 ───────	13,842,453 ───────
	15,895,228	18,856,422
	═══════	═══════

NOTE 31: SEGMENT INFORMATION

31.1 Primary Segments - Business Segments

Information for each business segment is shown in the following tables, in round thousands, as permitted under ASIC class order "ASIC Corporations (Rounding in Financial/Directors Reports) Instrument 2016/191".

Composition of each business segment is as follows:

Private Equity and Venture Capital involves equity and debt investments in non-listed entities not classified as property or funds management. It includes shares, debt, convertible notes and other investments.
Listed Investments comprises investments listed on recognised stock exchanges.
Property comprises property finance and equity accounted property interests.
Funds Management comprises the business and assets of the investment funds management operations.
Controlled investees included the operations of Cellnet Group Limited and Battery Energy Power Solutions Pty Limited.

31.2 Secondary Segments - Geographical Segments

CVC operates predominantly in Australia.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 31: SEGMENT INFORMATION (CONTINUED)

Ye En de d 3 0 J 20 17 ar un e	Pri Eq ity d vat e u an Ca ita l Ve ntu re p \$ '0 's 0 0	Lis d te Inv est nts me \$ '0 's 0 0	Pro ert p y \$ '0 's 0 0	nd Fu s Ma t na g em en \$ '0 's 0 0	E lim ina tio ns \$ '0 's 0 0	Co li da d te ns o \$ '0 's 0 0
Re ve nu e:
To l re for b le ta ort nts ve nu e re p a seg me Int nt er- seg me rev en ue	10, 925 -	19, 117 -	15, 9 46 3, 0 14	1, 195 13, 20 4	- ( ) 16, 21 8	47, 183 -
Un l loc d a ate ts: a mo un Int inc st ere om e	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ─── 635
Co li da d r te ns o ev en ue						─── ─── ─── ─── ─── 47, 8 18
Eq d i ity nte u ac cou om e nc	6 43 ═══ ═══ ═══ ═══ ══	414 ═══ ═══ ═══ ═══	( ) 32 8 ═══ ═══ ═══ ═══	213 ═══ ═══ ═══ ═══	- ═══ ═══ ═══ ═══	─── ─── ─── ─── ─── 9 42 ═══ ═══ ═══ ═══
Re lts su : l p fit for b le To ta ort nts ro re a seg me p Un l loc d a ate ts: te a mo un cor p ora exp en ses ha f p fit f e d a S ity cia nte tes re o ro o u ac cou sso q	10, 325	══ 18, 685	══ 5, 8 15	══ 67 4	══ -	═══ 35, 49 9 ( 12, 171 ) 9 42
li da d p fit fte Co te r ta o ro a ns x						─── ─── ─── ─── ─── 24, 270
D isc inu d o ion t t on e p era Re ve nu e						═══ ═══ ═══ ═══ ═══ 46, 865
fit fte Ne t p r ta ro a x						─── ─── ─── ─── ─── 5, 188 ═══ ═══ ═══ ═══ ═══
As set s: Seg nt ets me ass	21, 15 9	4, 6 269	43 70, 3	14 2, 3	-	158 41 8 ,
Un l loc d a ate ts: a mo un Ca h a d c h e iva len ts s n as q u Eq d i ity nte est nts u ac cou me nv Ot he ts r a sse	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ─── 41, 747 33, 8 40 45 5, 9
To l a ta ts sse						─── ─── ─── ─── ─── 24 0, 373
ia b i l it ies L : Seg lia bi lit ies nt me	3	22	27, 386	2, 38 7	-	═══ ═══ ═══ ═══ ═══ 29, 798
Un l loc d a ate ts: a mo un Ot he lia bi lit ies r	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ─── 12, 140
To l lia bi lit ies ta						═══ ═══ ═══ ═══ ═══ 41, 938
						══ ══ ══ ══ ═

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 31: SEGMENT INFORMATION (CONTINUED)

Pri de d 3 Ye En J 16 0 20 ar un e	d Eq ity vat e u an l Ve Ca ita ntu re p \$ '0 0 0 's	d Lis te Inv est nts me \$ '0 0 0 's	Pro ert y p \$ '0 0 0 's	nd Fu s Ma t na em en g \$ '0 0 0 's	lle d Co ntr o Inv est ees \$ '0 0 0 's	lim E ina tio ns \$ '0 0 0 's	li da d Co te o ns \$ '0 0 0 's
Co inu ing ion nt t op era s Re ve nu e:
l re for b le To ta ort nts ve nu e re p a seg me Int nt er- seg me rev en ue	1, 25 8 - ─── ─── ─── ─── ──	12, 1 75 - ─── ─── ─── ─── ──	5 3, 272 2, 0 79 ─── ─── ─── ───	49 12, 13 7 ─── ─── ─── ───	- - ─── ─── ─── ───	- ( 14, 21 6 ) ─── ─── ─── ───	6 7, 3 3 0 - ─── ─── ─── ───
Un l loc d a ate ts: a mo un Int inc st ere om e Un l loc d a inc ate ts: te a mo un cor ora om e p			──	──	──	──	─── 6 14 65
Co li da d r te o ev en ue ns							─── ─── ─── ─── ─── 6 8, 0 0 9
Eq ity d i nte u ac cou nc om e	1, 3 3 8 ═══ ═══ ═══ ═══ ══	- ═══ ═══ ═══ ═══ ══	5 9 3 ═══ ═══ ═══ ═══	275 ═══ ═══ ═══ ═══	- ═══ ═══ ═══ ═══	- ═══ ═══ ═══ ═══	═══ ═══ ═══ ═══ ═══ 2, 20 6 ═══ ═══ ═══ ═══
lts Re su : To l p fit for b le ta ort nts ro re p a seg me Un l loc d a ate ts: te a mo un cor p ora exp en ses S ha f p fit f e ity d a cia nte tes re o ro o q u ac cou sso	13 9	( 3 6 4 )	══ 17, 16 2	══ 49	══ -	══ -	═══ 17, 76 0 ( 8, 8 6 7 ) 2, 20 7 ─── ─── ─── ─── ───
Co li da d p fit fte te r ta ns o ro a x							11, 10 0
d o D isc inu ion t t on e era p Re ve nu e							═══ ═══ ═══ ═══ ═══ 6 78, 9 2
Ne fit fte t p r ta ro a x							─── ─── ─── ─── ─── 3, 1 95
As set s: Seg nt ets me ass	28, 8 17 ─── ─── ─── ─── ──	6 0, 5 0 6 ─── ─── ─── ───	115 779 , ─── ─── ─── ───	1, 8 8 2 ─── ─── ─── ───	21, 76 2 ─── ─── ─── ───	- ─── ─── ─── ───	═══ ═══ ═══ ═══ ═══ 22 8, 746 ─── ─── ─── ───
Un l loc d a ate ts: a mo un h a d c h e len Ca iva ts as u s n q Eq ity d i nte est nts u ac cou nv me Ot he ts r a sse		──	──	──	──	──	─── 20, 26 2 4, 9 65 1, 43 2
l a To ta ts sse							─── ─── ─── ─── ─── 255 405 ,
Lia bi lit ies : lia bi lit Seg ies nt me	6	-	26, 76 4	1, 9 3 7	8, 215	-	═══ ═══ ═══ ═══ ═══ 3 6, 9 22
Un l loc d a ate ts: a mo un Ot he lia bi lit ies r	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ──	─── ─── ─── ─── ─── 4, 9 6 4
To l lia bi lit ies ta							═══ ═══ ═══ ═══ ═══ 41, 8 8 6

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 32: RELATED PARTY INFORMATION

32.1 Key management personnel compensation

	2017	2016
	\$	\$
Short-term employee benefits	1,674,179	1,354,683
Post-employment benefits	104,438	103,793
Other	11,894	41,476
	──────────	──────────
Total	1,790,511	1,499,952
	════════	════════

Details of key management personnel remuneration, superannuation and retirement payments are set out in the Remuneration Report section of the Directors' Report.

The following key management personnel have made co-investments in the projects of CVC and have contractual rights to receive distributions and capital returns received by CVC from the projects. Refer note 32.5.

	Key Management Personnel entitlement
	ADH Beard	JA Hunter
Marsden Park Development Trust
- the landowner of the property project in Marsden Park North,
New South Wales	0.5%	0.5%
Donnybrook JV Pty Limited
- the landowner of the property project in Donnybrook, Victoria	1.0%	0.8%

Apart from the details disclosed in this financial report, no other Director has entered into a contract with the Company or CVC since the end of the previous financial year and there were no contracts involving Directors' interests existing at year-end.

32.2 Shares issued by controlled entity

On 11 November 2016 Eildon Funds Management Limited issued 12.5% of its ordinary shares to an entity related to Alexander Damien Harry Beard. The issue price of \$87,500 was based on an independent valuation prepared by Longergan Edwards and Associates Limited.

32.3 Share-based payments

(a) Eildon Capital Limited Option Plan

The establishment of the Eildon Capital Limited Option Plan ("ECOP") was approved by a resolution of shareholders on 26 November 2012. Options are granted under the ECOP for no consideration for a term of 3 years. The exercise price which is payable in cash and life of the options will be the amount specified by Directors at the time of issue. An option not exercised at the end of the term will lapse. The maximum number of options available to be issued under the ECOP is 3,700,000.

Options granted under the plan carry no dividend or voting rights. When exercised, each option is convertible into one ordinary share of Eildon Capital Limited. Amounts received on the exercise of options are recognised as a non-controlling interest in CVC.

The following is a summary of options granted under the plan.

Grant Date	Exercise Date	Exercise Price (cents)	Balance at start of year	Granted during the year	Exercised during the year	Buy-back during the year	Lapsed during the year	Balance at end of year	Vested
Year ended 30 June 2016
16 Jan 2013	15 Jan 2016	65.0	3,150,000	-	(2,650,000)	(500,000)	-	-	- ═════════════
			══════════════	═════════════	═════════════	═════════════	═════════════	═════════════

The assessed fair value per option at grant date is allocated equally over the period from grant date to vesting date.

All options were either exercised or bought back during the year ended 30 June 2016. The fair value per option has been determined by using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the share price and expected volatility of the underlying share and the risk-free interest rate for the term of the option. The theoretical value of the options are calculated as being 0.6 cents per option. Further terms and conditions include:

Price of the underlying shares - 62.66 cents;

Implied volatility - 5.28%;

The exercise price is adjusted for corporate actions; and

Risk-free interest rate for the life of the options – 3.25%.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 32: RELATED PARTY INFORMATION (CONTINUED)

32.3 Share-based payments (continued)

(b) Cellnet Group Limited ("Cellnet") Option Plan

(i) Performance Rights Plan

On 24 October 2014 at Cellnet's Annual General Meeting, shareholders approved a Performance Rights Plan. Under this plan, performance rights are issued to key management personnel of Cellnet. The rights deliver ordinary shares to key management personnel (at no cost to the executive) where the performance hurdle in relation to those performance rights is met. Following the exercise of a right, the Company must, within such time as the Board determines issue or allocate to or acquire on market for the person exercising the right, the number of shares in respect of which the right has been exercised, credited as fully paid.

The fair value of the performance rights granted were determined by management of Cellnet using either a binomial pricing model (profit before tax ("PBT") hurdle) or trinomial lattice pricing model incorporating a Monte-Carlo simulation (total shareholder return ("TSR") hurdle) depending on the nature of the associated vesting conditions. Further terms and conditions include:

Grant date – 3 February 2015; Rights granted – 3,300,000; Expected volatility - 50%; and Risk-free interest rate for the life of the options – 1.80%.

The following table illustrates movements in the number of performance rights on issue during the year.

			Ex ise erc	lan Ba at ce	d Gr te an	Ex ise d erc
	Ve ing st		Pr ice	f t he sta rt o	du he ing t r	du he ing t r	d du La ing p se r	he ha Ot r c ng es	lan d Ba at ce en		lue Va p er
he Tr an c	d it ion Co n s	ing Ve D st ate	(ce ) nts	y ear	y ear	y ear	he t y ear	(a )	f t he o y ear	d Ve ste	ig ht r
Ye de d ar en	3 0 J 20 17 un e										\$
he Tr 2 an c	PB T	3 0 Jun 20 16	-	3 3 3, 3 3 4	-	-	-	( ) 3 3 3, 3 3 4	-	-	0. 28
he Tr 3 an c	PB T	3 0 Jun 20 17	-	3 3 3, 3 3 3	-	-	-	( 3 3 3, 3 3 3 )	-	-	0. 28
he Tr 4 an c	S T R	17 3 0 Jun 20	-	2, 0 0 0, 0 0 0	-	-	-	( ) 2, 0 0 0, 0 0 0	-	-	13 0.
				══ ══ ══ ══ ══	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══	══ ══ ══ ══ ══
Ye de d ar en	3 0 J 20 16 un e
he Tr 1 an c	PB T	3 0 Jun 20 15	-	3 6 6, 6 6 6	-	( 3 6 6, 6 6 6 )	-	-	-	-	0. 28
Tr he 2 an c	PB T	3 0 Jun 20 16	-	3 6 6, 6 6 7	-	-	( 3 3, 3 3 3 )	-	3 3 3, 3 3 4	3 3 3, 3 3 4	0. 28
he Tr 3 an c	PB T	3 0 Jun 20 17	-	3 6 6, 6 6 7	-	-	( 3 3, 3 3 4 )	-	3 3 3, 3 3 3	3 3 3, 3 3 3	0. 28
Tr he 4 an c	T S R	3 0 Jun 20 17	-	2, 20 0, 0 0 0	-	-	( 20 0, 0 0 0 )	-	2, 0 0 0, 0 0 0	2, 0 0 0, 0 0 0	0. 13
				══ ══ ══ ══ ══	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══ ═	══ ══ ══ ══ ══	══ ══ ══ ══ ══

(a)Cellnet ceased to be controlled entity of CVC during the year.

Cellnet has not issued rights to key management personnel of CVC.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 32: RELATED PARTY INFORMATION (CONTINUED)

32.3Share-based payments (continued)

(b)Cellnet Group Limited Option Plan (continued)

(ii) Non-executive Director Options

On 24 October 2014, Cellnet issued options to key management personnel of CVC. There are no vesting conditions attached to the options. Options are exercisable at any time during the period from the date of its issue until 31 October 2017.

The following is a summary of options granted under the plan.

Ke y Ma t na em en g		Ex ise erc	Ex ise erc ice Pr	lan Ba at ce f t he sta rt o	d Gr te an du ing he t r	d Ex ise erc du ing he t r	d La p se du ing he t r	he Ot r ha (a ) es c ng	lan Ba at ce d o f t he en		lue f Va o ion t op s
l Pe rso nn e	Gr Da t te an	Da te	(ce ) nts	y ear	y ear	y ear	y ear		y ear	d Ve ste	d te g ran \$
Ye de d 3 0 J ar en un	20 17 e
A d DH Be ar	Oc 14 24 t 2 0	1 Oc 17 3 t 2 0	25 .0	1, 20 0, 0 0 0	-	-	-	( 1, ) 20 0, 0 0 0	-	-	140 3 7,
				── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ── ─	── ── ── ── ─	── ── ── ──	── ── ── ──
Ye de d 3 0 J ar en un	20 16 e
A d DH Be ar	Oc 24 t 2 0 14	Oc 3 1 t 2 0 17	25 .0	1, 20 0, 0 0 0	-	-	-	-	1, 20 0, 0 0 0	1, 20 0, 0 0 0	3 7, 140
E G Ka lan ( b ) p	24 Oc t 2 0 14	3 1 Oc t 2 0 17	25 .0	1, 20 0, 0 0 0 ── ── ── ─	- ── ── ── ─	- ── ── ── ─	- ── ── ── ─	( 1, 20 0, 0 0 0 ) ── ── ── ── ─	- ── ── ── ── ─	- ── ── ── ──	- ── ── ── ──
				2, 40 0, 0 0 0	-	-	-	( 1, 20 0, 0 0 0 )	1, 20 0, 0 0 0	1, 20 0, 0 0 0	3 7, 140
				── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ── ─	── ── ── ── ─	── ── ── ──	── ── ── ──

(a)Cellnet ceased to be controlled entity of CVC during the year.

(b)Elliott Kaplan ceased to be considered to be a member of the key management personnel on 23 November 2015 when he retired as Managing Director of Eildon Capital Limited.

The fair value per option has been determined by using the Binomial option pricing model that takes into account the exercise price, the term of the option, the share price and expected volatility of the underlying share and the risk-free interest rate for the term of the option. The theoretical value of the options are calculated as being 3.1 cents per option. Further terms and conditions include:

Price of the underlying shares – 25.0 cents; Implied volatility - 50%; Risk-free interest rate for the life of the options – 2.49%; and Value of options at grant date – 3.1 cents

No expense (2016: nil) was recognised in respect of the above options during the year ended 30 June 2017.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 (CONTINUED)

NOTE 32: RELATED PARTY INFORMATION (CONTINUED)

32.4 Loans to Key Management Personnel

There were no loans to key management personnel during or at the end of the financial year.

32.5 Loans with Related Parties

The following represent loans to and from related parties with CVC and its controlled entities during the financial year.

	2017	2016	Interest Rate
	\$	\$	%
Loans Receivable
Donnybrook JV Pty Limited	-	8,205,517	0%
Eildon Funds Management Limited	21,755	-	0%
The Kingsgrove (Vanessa Road) Unit Trust	83,550	-	20%
Mooloolaba Wharf Holding Company Pty Limited	324,988	1,047,763	0% - 15%
MAKE EBRB Dev Nominee Pty Ltd	8,972,162	7,667,835	15%
Turrella Property Unit Trust	300,000	336,694	20%
Urban Properties Cairns Pty Limited	287,603	3,784,656	17.5%
Urban Properties Centenary Pty Limited	10,021,410	9,026,670	17.5%
Loans Payable
Winten (No. 20) Pty Limited	10,123,967	10,105,812	6.5%
Co-investment in Marsden Park and Donnybrook Projects (refer note 32.1)
Alexander Beard and Pascale Beard as trustees for the AD
& MP Superannuation Fund	126,060	121,682	0%
Virtual Sales Pty Limited(a)	105,497	101,119	0%

(a) Private company associated with Mr Hunter.

32.6 Other Transactions

The following represent income and expenditure generated from transactions with related parties with CVC and its controlled entities during the financial year.

Paid Received Paid Received \$ \$ \$ Management and consulting fees Eildon Funds Management Limited 600,311 752,362 - - - Urban Properties Pty Limited - 36,000 Interest income MAKE EBRB Dev Nominee Pty Ltd - 1,239,327 - Mooloolaba Wharf Holding Company Pty Limited - 127,224 - -			2017	2016

					\$

					-


					607,835

	Turrella Property Unit Trust	-	106,369	-	9,458
The Kingsgrove (Vanessa Road) Unit Trust - 30 - -
Urban Properties Cairns Pty Limited - - -					1,124,024
Urban Properties Centenary Pty Limited - - - 1,000,640
Dividend and distribution income
Concise Mid Cap Fund - 246,843 -					32,577
Ron Finemore Transport Pty Limited - - - 634,746
- - Nepean Highway Unit Trust -					1,214,798
Marsden Park distribution (refer note 32.1)
Alexander Beard and Pascale Beard as trustees for the AD 6,676 - 30,042					-
& MP Superannuation Fund
Virtual Sales Pty Limited(a) 6,676 - 30,042					-
Other amounts
Winten (No. 20) Pty Limited - Borrowing costs 1,032,272 - 661,520					-

(a) Private company associated with Mr Hunter.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 33: ADDITIONAL FINANCIAL INSTRUMENTS DISCLOSURE

CVC's activities expose it to a variety of financial risks: market risk (including market price risk, interest rate risk and currency risk), credit risk and liquidity risk. CVC's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the group.

CVC uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and price risk.

The responsibility for operational risk management resides with the Board of Directors who seeks to manage the exposure of CVC. There have been no significant changes in the types of financial risks, or CVC's risk management program (including methods used to measure the risks) since the prior year.

33.1 Interest Rate Risk

CVC's exposure to interest rate risks of financial assets and liabilities both recognised and unrecognised at the reporting date are as follows:

		ixe d Int F st ere
	No te	F loa ing Int Ra t st te ere	1 Ye Le ar or ss	1 t Ye 5 o ars	No Int Be ing st n ere ar	To l ta
20 17:		\$	\$	\$	\$	\$
ina ia l a F ts nc sse
Ca h a d c h e iva len ts s n as q u	27	41, 3 18, 44 9	42 7, 765	-	50 2	41, 746 716 ,
d o he b les Lo iva t an s a ece n r r	9	- ══ ══ ══ ══	26, 239 532 , ══ ══ ══ ══	21, 26 7, 139 ══ ══ ══ ══	3, 43 6, 506 ══ ══ ══ ══	50, 9 43, 177 ══ ══ ══ ══ ═
ina ia l l ia b i l it ies F nc
Tr de d o he b les t a an r p ay a	19	-	-	-	15 1, 1 8, 67	15 1, 1 8, 67
Int be lia bi lit ing ies st ere ar	21	12, 679 43 9 , ══ ══ ══ ══	- ══ ══ ══ ══	10, 123 96 7 , ══ ══ ══ ══	- ══ ══ ══ ══	22, 803 40 6 , ══ ══ ══ ══ ═
20 16:
F ina ia l a ts nc sse
Ca h a d c h e iva len ts s n as q u	27	6, 9 42 8 0 1 ,	14, 729 747 ,	-	5 0 2	21 6 73, 05 0 ,
d o he b les Lo iva t an s a ece n r r	9	-	6 4, 65 8, 9 17	12, 18 7, 5 18	25, 5 74, 6 9 6	10 2, 42 1, 13 1
fin l in De riv ive cia at str t an um en	22	-	-	-	143 0 0 0 ,	143 0 0 0 ,
		══ ══ ══ ══	══ ══ ══ ══	══ ══ ══ ══	══ ══ ══ ══	══ ══ ══ ══ ═
ina ia l l ia b i l it ies F nc
de d o he b les Tr t a an r p ay a	19	-	-	-	12, 6 49 7, 42	12, 6 49 7, 42
Int be lia bi lit ing ies st ere ar	21	12, 228 19 2 ,	-	12, 5 10, 8 12	-	24, 73 9, 0 0 4
		══ ══ ══ ══	══ ══ ══ ══	══ ══ ══ ══	══ ══ ══ ══	══ ══ ══ ══ ═

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 33: ADDITIONAL FINANCIAL INSTRUMENTS DISCLOSURE (CONTINUED)

33.1 Interest Rate Risk (Continued)

CVC holds a significant amount of cash balances which are exposed to movements in interest rates. To reduce the risk CVC typically deposits uncommitted cash with financial institutions at fixed rates with maturity of between 30 – 90 days. Interest bearing loans and receivables are made at fixed rates. CVC is not charged interest on outstanding trade and other payable balances. CVC enters into loans and borrowings with fixed rates of interest when it is considered commercial and necessary to manage cash flows.

Sensitivity

As CVC expects interest rates to increase by 50 basis points during the 2018 financial year (2017: 50 basis points lower), at reporting date the impact for the 2017 financial year on CVC, with all other variables held constant, would be:

	Increase of 50 bp	Decrease of 50 bp
2017	\$	\$
Net profit	92,524	-
Equity increase	92,524	-
2016 Net loss Equity decrease	- -	87,615 87,615

33.2 Price Risk

Equity Securities Price Risk

CVC has investments in listed securities which could be adversely affected if general equity market values were to decline. CVC also has investments in unlisted securities however these are less susceptible to movements in value as a result of market sentiment as they are valued based on operational fundamentals. CVC does not hedge its exposure to the risk of a general decline in equity market values, believing that such strategies are not cost-effective.

Sensitivity

At reporting date, if equity prices had been 10% higher/(lower) while all other variables were held constant the impact would be:

	Increase of 10% \$	Decrease of 10% \$
2017
Net profit/(loss)	1,092,568	(1,092,568)
Equity increase/(decrease)	8,023,109	(8,023,109)
2016
Net profit/(loss)	187,778	(187,778)
Equity increase/(decrease)	6,783,837	(6,783,837)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 33: ADDITIONAL FINANCIAL INSTRUMENTS DISCLOSURE (CONTINUED)

33.3 Credit Risk Exposure

Credit risk refers to the loss that CVC would incur if a debtor or counterparty fails to perform under its obligations. The carrying amounts of financial assets recognised in the statement of financial position best represent CVC's maximum exposure to credit risk at reporting date. CVC seeks to limit its exposure to credit risk by performing appropriate background investigations on counterparties before entering into arrangements with them and to seek collateral with a value in excess of the counterparty's obligations to CVC, providing a "margin of safety" against loss.

CVC's significant concentration of credit risk relates to deposits held with financial institutions, which is mitigated by the requirement that deposits are only held with institutions with an "investment grade" credit rating, and loans made to various entities, which are mitigated by collateral held with a value in excess of the counterparty's obligations to CVC, providing a "margin of safety" against loss.

CVC minimises concentrations of credit risk in relation to trade receivables by undertaking transactions with a number of counterparties, and is managed through normal payment terms of 30 days. There is an insurance policy in place to limit loss on certain trade receivables and as such there is no risk of recovery in relation to trade debtors.

33.4 Liquidity Risk

CVC manages liquidity risk by maintaining sufficient cash balances and holding liquid investments that could be realised to meet commitments. CVC continuously monitors forecast and actual cash flows and matches the maturity profiles of financial assets and liabilities.

The following table details CVC's contractual liabilities.

	Less than 6 months	6 months to 1 Year	1 to 5 Years	Greater than 5 Years	Total
	\$	\$	\$	\$	\$
2017
Trade and other payables	8,151,671	-	-	-	8,151,671
Interest bearing liabilities	-	12,679,439	10,123,967	-	22,803,406
2016
Trade and other payables	12,497,426	-	-	-	12,497,426
Interest bearing liabilities	3,167,951	-	10,105,812	11,465,241	24,739,004

33.5 Currency Risk

Currency risk is measured using sensitivity analysis. A portion of CVC investments are in companies listed on foreign exchanges and sales and purchases are made in foreign currencies. CVC is exposed to a decline in the values of those currencies relative to the Australian dollar.

During the 2016 financial year, CVC entered into forward foreign exchange contracts to hedge certain anticipated purchase commitments denominated in foreign currencies (principally United States dollar). The term of these commitments were no more than 45 days. The forward foreign exchange contracts were disposed as a result of disposal of controlled entity during the year.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 33: ADDITIONAL FINANCIAL INSTRUMENTS DISCLOSURE (CONTINUED)

33.5 Currency Risk (Continued)

Entering into forward foreign currency contracts for sales and purchases minimises the risk of sharp fluctuations in foreign exchange rates and allows for better cash flow management in relation to paying international suppliers. At balance date CVC had the following exposure to the United States dollar and New Zealand dollar that is not designated as cashflow hedges:

	2017	2016
	\$	\$
Financial assets
Loans and other receivables	3,236,156	3,264,486
Financial assets – "at fair value through profit or loss"	513,690	-
Financial assets – "available-for-sale"	3,684,127	3,931,633
Trade and other receivables	- ───────	239,000 ───────
	7,433,973 ───────	7,435,119 ───────
Financial liabilities
Trade and other payables	-	2,131,000
Forward foreign currency contracts (a)	- ───────	13,710,000 ───────
	- ───────	15,841,000 ───────

(a) Denotes the amount of USD to be exchanged at forward exchange rate.

Foreign currency sensitivity

CVC is exposed to the US dollar (USD), New Zealand dollar (NZD) and British pound (GBP). The following table details CVC's sensitivity to a 10% change in the Australian dollar against the respective currencies with all other variables held constant as at reporting date for unhedged foreign exchange exposure. A positive number indicates an increase in net profit/equity.

A sensitivity of 10% has been selected as this is considered reasonable given the current level of exchange rates and the volatility observed on a historic basis and market expectations for future movement.

		Net profit/(loss)	Equity increase/(decrease)
	2017	2016	2017	2016
	\$	\$	\$	\$
USD
Increase in AUD of 10%	(16,536)	(1,014,980)	(177,146)	(1,281,848)
Decrease in AUD of 10%	20,237	1,567,369	216,539	1,241,197
NZD
Increase in AUD of 10%	-	-	(205,937)	(296,771)
Decrease in AUD of 10%	-	-	251,701	362,721
GBP
Increase in AUD of 10%	(16,143)	-	(16,143)	-
Decrease in AUD of 10%	19,731	-	19,731	-

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 34: FAIR VALUE MEASUREMENTS

The fair values of the financial assets and liabilities of CVC are approximately equal to their carrying values. No financial assets or financial liabilities are readily traded on organised markets in standardised form.

Judgements and estimates were made in determining the fair values of the financial instruments and non-financial assets that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, CVC has classified its financial instruments and non-financial assets into three levels prescribed under the accounting standards.

Level 1 – the fair value is calculated using quoted prices in active markets.

Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset, either directly (as prices) or indirectly (derived from prices).

Level 3 – the fair value is estimated using inputs for the asset that are not based on observable market data.

The fair value of the assets and liabilities as well as the methods used to estimate the fair value are summarised in the table below.

	Quoted market price (Level 1)	Valuation technique – market observable inputs (Level 2)	Valuation technique – non market observable inputs (Level 3)	Total
	\$	\$	\$	\$
Year ended 30 June 2017
Financial assets
"Available-for-sale" investments
Shares in listed corporations – at market value	2,515,150	44,358,245	-	46,873,395
Public unlisted investments – at market value	-	1,328,968	-	1,328,968
Other investments	-	-	8,200,219	8,200,219
"Fair value through profit or loss" investments
Shares in listed corporations – at market value	12,402,205	2,906,955	-	15,309,160
Other investments Non-financial assets	-	-	5,034,187	5,034,187
Investment properties	-	-	8,578,697	8,578,697
	───────── 14,917,355	───────── 48,594,168	───────── 21,813,103	───────── 85,324,626
Year ended 30 June 2016	═════════	═════════	═════════	═════════
Financial assets
"Available-for-sale" investments
Shares in listed corporations – at market value	7,409,444	50,929,259	-	58,338,703
Public unlisted investments – at market value	-	1,381,992	-	1,381,992
Other investments	-	175,884	9,434,922	9,610,806
"Fair value through profit or loss" investments
Shares in listed corporations – at market value	2,489,914	-	-	2,489,914
Derivative financial instruments	-	143,000	-	143,000
Non-financial assets Investment properties	-	-	13,159,852	13,159,852
	─────────	─────────	─────────	─────────
	9,899,358 ═════════	52,630,135 ═════════	22,594,774 ═════════	85,124,267 ═════════

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 34: FAIR VALUE MEASUREMENTS (CONTINUED)

Reconciliation of Level 3 fair value movements:

	2017	2016
	\$	\$
Balance at the beginning of the year	22,594,774	22,757,938
Purchases	5,723,702	12,806,186
Sales	(244,972)	(11,890,798)
Losses recognised in other income (a)	(1,145,017)	(65)
Gains recognised in other comprehensive income	534,307	816,105
Transfer into Level 3 from Level 2 (b)	171,000	-
Transfer out of Level 3 to Level 1	(1,490,000)	-
Transfer out of Level 3 (c)	(4,330,691) ────────	(1,894,592) ────────
Balance at the end of the year	21,813,103 ════════	22,594,774 ════════
(a) Unrealised losses recognised in profit or loss attributable to assets held at
the end of the reporting period.	1,145,017 ════════	65 ════════

(b) Investment in property funds have been transferred from level 2 to level 3 as there is no quantitative information to assess carrying value. Fair value has been determined based on acquisition cost.

(c) The capital cost of the property at 425-434 Pumicestone Road Caboolture Queensland was reclassified from investment properties to inventories as CVC made a decision to develop the site. The capital cost of the property at 190-198 Princes Highway South Nowra was reclassified from investment properties to construction contract after CVC entered into a development delivery agreement for the construction of the site.

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 34: FAIR VALUE MEASUREMENTS (CONTINUED)

The fair value of Level 2 financial instruments is determined using available prices where trading does not occur in an inactive market. The quantitative information about the significant unobservable inputs used in level 3 fair value measurements are as follows:

	ir v Fa	lue a
	J 17 30 20 un e	3 0 Jun 20 16 e	Un bs b le o erv a	W ig hte e	d a ve rag e	Re lat ion h ip f u bs b le inp uts to s o no erv a
ip ion De t scr	\$	\$	inp uts	20 17	20 16	fa ir v lue a
Le d p ies ert ase rop	1, 350 000 ,	2, 0 0 0, 0 0 0	Ca lis ita ion at te p ra	% 10 .16	6. 6 6 %	T he hig he he ita lis ion he r t at te, t ca p ra low he fa lue ir v t er a
			Le iry ase ex p	1.3 3 y ear s	2.3 3 y ear s	he lon he lea he hig he he T t ter t r t g er se m, fa lue ir v a
			Oc cu p an cy	10 % 0	10 0 %	he hig he he he hig he T r t rat t oc cu p an cy e, r he fa ir v lue t a
lop De ies nt ert ve me rop p	7, 228 697 ,	11, 15 9, 85 2	lis Ca ita ion at te ra p	% 6.5	% 6. 0	T he hig he he ita lis ion r t at te ca p ra on let f c he low he ion tio str t t com o on uc er p n, fa ir v lue a
	── ── ── ─ 8, 578 697 , ══ ══ ══ ═	── ── ── ─ 13, 15 9, 85 2 ══ ══ ══ ═
Ot he r in stm ts – at st ve en co	13, 23 4, 40 6 ══ ══ ══ ═	9, 43 4, 9 22 ══ ══ ══ ═	( ) a

(a)There is no quantitative information. Fair value has been determined based on acquisition cost.

NOTE 35: EVENTS SUBSEQUENT TO YEAR END

Subsequent to year end CVC also entered into a sale agreement for a commercial site at Yarrabilba, Queensland. The sale of the site will settle following completion of construction in November 2017, at which time it is forecast to contribute \$5.0 million to CVC's profits for the 2018 financial year.

A final dividend in respect of the year ended 30 June 2017 of 8 cents per share was declared on 21 August 2017 to be paid on 6 September 2017 to those shareholders registered on 25 August 2017.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 36: CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

CVC makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

36.1 Loans to associated entities

An impairment has been raised against certain loans to associated entities of \$1,829,206 (2016: nil) that have a carrying value of \$20,011,468 (2016: \$30,069,135). The recoverable amount has been assessed in note 9.

36.2 Trade receivables

The recoverable value of trade receivables has been assessed in note 9.

36.3 Available-for-sale investments

The fair value of the investments has been assessed in note 10.

36.4 Inventories

The fair value of the inventories has been assessed in note 13.

36.5 Absence of active market

In calculating the fair value of Eildon Capital Limited, Bionomics Limited, Cellnet Group Limited, Cyclopharm Limited, Heritage Brands Ltd, Lantern Hotel Group, Mitchell Services Limited, Prime Media Group Limited, 360 Capital Total Return Fund, Universal Biosensors Inc., US Residential Fund and Vita Life Sciences Limited CVC has determined that an active market may not exist for significant holdings because each company does not trade on a daily basis; each trade that is executed, excluding those by CVC, is small in size; and the market capitalisation is small such that larger institutions do not hold significant shareholdings. However the active market in small amounts of trading does provide a guide for valuation in that it indicates whether or not the market values the intangible assets of an entity. This factor has been used in determining the valuation of each company. The fair value of the investments has been assessed in note 10 and note 12.

36.6 Investments accounted for using the equity method – unlisted investments

79 Logan Road Trust has a carrying value of \$3,360,092 (2016: nil).

Concise Asset Management Limited has a carrying value of \$1,016,683 (2016: \$1,125,489).

Donnybrook JV Pty Ltd has a carrying value of \$8,098,961 (2016: nil). A valuation was conducted of the project which led to the property being valued at \$79.95 million. This values CVC's investment at \$31.6 million.

Eildon Funds Management Limited has a carrying value of \$73,013 (2016: nil).

JAK Investment Group Pty Limited has a carrying value of \$182,330 (2016: \$352,654).

LAC Unit Trust has a carrying value of \$659,010 (2016: \$398,695).

MAKE EBRB Dev Nominee Pty has a carrying value of \$3,244,407 (2016: \$3,486,434). A valuation was conducted of the project which led to the property being valued at \$38.6 million. This values CVC's investment at \$6 million.

South Pack Laboratories (Aust) Pty Ltd has a carrying value of \$4,483,171 (2016: nil).

Turrella Property Unit Trust has a carrying value of \$244,000 (2016: nil).

36.7 Investments accounted for using the equity method – listed investments

The investment in Eildon Capital Limited has a carrying value of \$12,477,977 (2016: nil).

36.8 Property, plant and equipment

The recoverable value of property, plant and equipment have been assessed in note 16.

36.9 Investment properties

The recoverable value of investment properties have been assessed in note 17.

36.10 Loans to other corporations

An impairment has been raised against certain loans to other corporations of nil (2016: \$753,202) that have a carrying value of \$27,526,958 (2016: \$56,315,275). The recoverable amount has been assessed in note 9.

INDEPENDENT AUDITOR'S REPORT

To the Members of CVC Limited

REPORT ON THE AUDIT OF THE FINANCIAL REPORT

Opinion

We have audited the financial report of CVC Limited ("the Company") and its controlled entities ("the Group"), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of financial performance, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Group's financial position as at 30 June 2017 and of its financial performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants ("the Code") that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

INDEPENDENT AUDITOR'S REPORT (continued)

Key Audit Matter	How our audit addressed the key audit matter
Loans Receivable
The consolidated entity had a significant balance of loans receivable as at 30 June 2017. Refer to Note 9 to the financial statements. A large portion of the loans have been provided to property developers with properties provided as security for the loans. We have therefore identified loans receivable as an area requiring particular audit attention.	We reviewed loan agreements and other supporting documentation.
	We obtained client workings and assessed reasonableness of recoverability assessment, including where relevant, the prospect of recovering the loan within the next 12 months.
		We reviewed security of loan and assessed for reasonableness.
	We obtained current external valuations, where available, and assessed the competence, independence and integrity of the external expert appointed by management.
	We obtained loan confirmation from third parties.
		We considered the classification of the loan balance to ensure it was reasonable.

Unlisted investments
The consolidated entity holds a significant amount of unlisted investments, held at either cost or fair value. Refer to Note 10 to the financial statements.	We reviewed management's valuation methodology, including impairment assessment, with reference to recent financial statements, forecasts/budgets, future income, or marketability of investments.
These investments are subject to a high degree of judgement. Therefore it is considered to be a key audit area.
Investment properties
The carrying value of the investment properties has been assessed with reference to future cash flows. Refer to Note 17 to the financial statements. As future cash flows are typically based on a number of variables, the existence, valuation and allocation of investment properties is considered to be a key audit area.	We reviewed management's assessment of value with reference to external valuations and other supporting documentation. We assessed the competence, independence and integrity of the external expert appointed by management.
	We ensured the treatment of revaluations and impairment movements were in accordance with Australian Accounting Standards.
	We agreed properties held to land title searches.

INDEPENDENT AUDITOR'S REPORT (continued)

Information Other than the Financial Report and Auditor's Report Thereon

The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2017, but does not include the financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors 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 control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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 Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

INDEPENDENT AUDITOR'S REPORT (continued)

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON THE REMUNERATION REPORT

Opinion on the Remuneration Report

We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2017.

In our opinion, the Remuneration Report of CVC Limited for the year ended 30 June 2017 complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

HLB Mann Judd M D Muller Chartered Accountants Partner

Sydney, NSW 21 August 2017

(AND ITS CONTROLLED ENTITIES)

CORPORATE GOVERNANCE STATEMENT

The Board of Directors of the Company is responsible for the corporate governance of CVC. It is required to act with integrity, honesty, in good faith and in the best interest of the Company as a whole in the execution of its duties including setting, guiding and monitoring the business and affairs of the Company, including risk management, and compliance with regulatory, legal and ethical standards. The Board is responsible for the oversight of reporting to the shareholders by whom they are elected and to whom they are accountable. It is responsible for ensuring there is adequate oversight and management of material business risks facing the Company and ensuring there are systems in place to identify, assess, monitor and manage market, operational and compliance risks. This is achieved via a control environment, accountability and review of risk profiles.

The Board has delegated to the Managing Director all of the necessary power and authority to manage the business of the Company on a day-to-day basis with the assistance of senior management. This includes execution of the strategy approved by the Board, managing performance, risk management and compliance of the Company. The Company has implemented a risk management framework which describes and sets out the risks (financial and non-financial) facing the business activities of the Company and controls surrounding those risks. The profiles are formally reviewed annually by management. The financial risks that may adversely impact the operations of the Company are described and analysed in the annual financial report.

At the date of this report the Directors in office are as follows:

	Alexander Damien Beard (Managing Director) - Appointed 17 August 2000, member of the audit committee
John Douglas Read	- Appointed 20 March 1989, member of the audit committee
Ian Houston Campbell	- Appointed 16 March 2015, member of the audit committee

Appointment to the Company and the Board is dependent on skills, experience, character and other qualifications rather than solely on achieving a pre-specified diversity target. The Board seeks to ensure its members have an appropriate mix of skills, knowledge and experience to enable it to properly perform its duties, which have been detailed in the Directors' Report, including numbers and attendances of Board and audit committee meetings. Given the size and scale of the organisation the Board has not adopted a policy and measurable targets in relation to diversity but notes that neither the Board nor the senior management have a woman appointed and currently 33% of the Company's employees are women.

The Board considers that CVC seeks to comply, where appropriate, with the Corporate Governance Principles and Recommendations issued by the ASX Corporate Governance Council. Where CVC does not comply, this is primarily due to the current size, scale and nature of the operations. The Council recognises that "a one size fits all" approach may be inappropriate. Companies are at liberty to determine whether each recommendation is appropriate. Different companies face different circumstances hence some recommendations are unnecessary or may even be counter-productive. In particular it acknowledged that it may be inappropriate or uneconomic for smaller companies, such as CVC, to follow the same rules as Australia's largest listed companies. The Council has issued recommendations and require companies to adopt an 'if not why not' approach to reporting compliance, requiring companies to identify the recommendations that have not been followed and give reasons for not following them.

The Company chose to adopt selected recommendations throughout the financial year ended 30 June 2017, in particular those discussed in detail below:

Board Composition and Directors' Experience

The Board of the Company comprises three Directors.

Mr Beard, being Managing Director, is responsible for the management and operation of the Company and ensures that members of the Board are properly briefed on the operations of the Company. Those powers not specifically reserved to the Board and which are required for the management and operation of the Company, are conferred on the Managing Director.

Mr Read is a non-executive Chairman of the Board and a member of the audit committee. As he has been on the Board of the Company for more than twenty five years, he is not considered independent. Further information in relation to the audit committee can be found in the Directors' Report to the financial report.

Mr Campbell is an independent non-executive Director and Chairman of the audit committee and has extensive skills, experience and knowledge to perform his duties in that capacity.

CORPORATE GOVERNANCE STATEMENT

The Board elects a member to chair each meeting and believe that the current structure of the Board operates effectively and efficiently, allowing the Board to collectively exercise its authority without the need for the appointment of additional independent directors or the creation of further sub-committees and is appropriate for the size and scale of the Company. The Board has considered the competencies and experience of each of the Directors and believes that it is not in the interest of shareholders to seek to replace or appoint Board members. The Board as a whole reviews Board succession planning and continuing development to ensure the members have an appropriate balance of skills. Directors are encouraged to undertake professional development to enable them to develop and maintain the skills and knowledge needed to effectively perform their roles as Directors, where considered appropriate for the oversight of the Company.

The Company Secretary supports the effectiveness of the Board by monitoring that Board policy and procedures are followed and deals with regulatory bodies on statutory matters.

For these reasons, the Company did not adopt the following recommendations throughout the financial year ended 30 June 2017:

Appointing a majority of independent Directors;
Appointing an independent Chairman;
Appointing an internal audit function, audit committee with an independent chairman, a majority of independent Directors or non-executive Directors;
A nomination committee of the Board;
A risk committee of the Board;
Establishment of formal performance policies for Directors and senior management;
Documentation of a Board skills matrix;
Implementing a program for inducting new Directors;
Implementing policies and processes for communication with shareholders and participation at meetings;
A remuneration committee of the Board;
Written agreement with directors and senior executives setting out terms of roles; and
Adopting a policy and measurable targets to achieve gender diversity.

Performance of the Board and Senior Management

The Directors and senior management are regularly reviewed for measureable and qualitative performance. The Board as a whole has the responsibility to review its own performance and of individual directors. The Board undertakes an annual review at 30 June each year of the Managing Director and senior management.

The Board did not undertake a review of the performance of its members during the year ended 30 June 2017. Rather, the Board, mindful of its duties, considers it appropriate to monitor the performance on an ongoing basis and conduct a formal review as necessary.

When applicable, remuneration of non-executive Directors is in accordance with resolutions of shareholders at the general meeting. The Company does not have any schemes for retirement benefits, other than statutory superannuation for non-executive Directors.

The details of remuneration paid to Directors and senior management are disclosed in the Remuneration Report.

CORPORATE GOVERNANCE STATEMENT

Costs and Benefits of Compliance

A number of the recommendations require the formal documentation of policies and procedures that the Company already substantially performs. The Company considered that to create such documentation independently and specifically for the Company, and create separate Boards and sub-committees to satisfy the requirements of the Corporate Governance Principles and Recommendations would have had minimal additional benefit but substantial additional expense. The Company is also mindful to not adopt such procedures and structures solely for the sake of adoption or where they could actually inhibit the proper function or development of the Company.

The Board has determined that the adoption of such formal policies and procedures must be tailored to the Company at minimal expense and must be appropriate for the Company, taking into account the size and complexity of its operations. The Company is currently considering the adoption and implementation of the following recommendations:

A formal charter for the audit committee of the Company;
written policies and procedures to ensure compliance with ASX listing rules disclosure requirements; and
A process for performance evaluation of the Board and individual Directors.

Other Information

The Company has a policy of allowing Directors to take reasonable independent legal advice in the furtherance of their duties at the expense of the Company.

All members of the Board are members of the Audit Committee.

In respect of the year ended 30 June 2017, the Managing Director and the Chief Financial Officer have provided certifications to the Board that the financial records of the Company have been properly maintained and that the financial statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the Company and has a sound system of risk management and internal control which is operating effectively.

The Company has adopted policies in relation to conduct of Directors, senior management and employees of the Company. The policies require Directors, senior management and employees to act ethically, responsibly, honestly, in good faith, and in the best interest of the Company as a whole, whilst complying with laws and regulations.

The Company has adopted a Share Trading Policy, which must be complied with by all directors and employees. The policy summarises the insider trading prohibitions in the Corporations Act 2001 and provides information on trading windows, exceptional circumstances, excluded trading, and an obligation on directors and employees to disclose all trades in the Company's shares.

The Company's external auditor attends the annual general meeting and is available to answer questions from the shareholders relevant to the audit.

In accordance with the ASX Continuous Disclosure requirements, the Company ensures that price sensitive information is released to the market on a timely basis including through the annual and half-yearly reports. At the election of shareholders reports issued by the Company are provided electronically. Additional information regarding the operation of CVC can be found at www.cvc.com.au, by contacting the Company directly or by attending the annual general meeting.

(AND ITS CONTROLLED ENTITIES)

ADDITIONAL INFORMATION

The following information was current as at 17 August 2017.

Distribution schedule

The distribution of shareholders and their shareholdings was as follows:-

Category (size of holding)	Number of ordinary shareholders
1 - 1,000	194
1,001 - 5,000	262
5,001 - 10,000	153
10,001 - 100,000	225
100,001 - over	80 ────────
Total	914 ════════
Unmarketable parcels	Minimum Number of

On market share buy-back

The Company has a current on market share buy-back which commenced on 28 November 2016.

Minimum \$500.00 parcel at \$2.1 per share 239 70

Substantial holders

The names of the Company's substantial holders and the number of ordinary shares in which each has a relevant interest as disclosed in substantial holder notices given to the Company are as follows:

shareholders

parcel size

Shareholder	Number of ordinary shares in which interest held
Leagou Pty Limited	20,704,611
Southsea (Aust.) Pty Limited	17,610,506
Bennett Estates Limited	15,575,978
Joseph David Ross	12,000,000
Muk Min Fa Limited	7,280,246

(AND ITS CONTROLLED ENTITIES)

ADDITIONAL INFORMATION (CONTINUED)

20 largest shareholders - ordinary shares

As at 17 August 2017, the top 20 shareholders and their shareholdings were as follows:

Shareholder	Shares held	% of issued capital held
Leagou Pty Limited	20,704,611	17.32
Southsea (Aust.) Pty Limited	17,610,506	14.73
Bennett Estates Limited	15,575,978	13.03
J K M Securities Pty Limited	12,000,000	10.04
Muk Min Fa Limited	7,280,246	6.09
Chemical Trustee Limited	4,861,741	4.07
Pacific Securities Inc.	3,949,630	3.30
Chia Ching Investments Limited	3,330,618	2.79
Saudi Film Investments Fund Limited	3,264,711	2.73
Wenola Pty Limited	2,949,805	2.46
Anglo Australian Christian & Charitable Fund	2,432,568	2.04
Mr Nigel Cameron Stokes	1,000,000	0.84
Mr Alexander Damien Beard	824,136	0.69
Dr Raymond Joseph Healey	808,817	0.68
Melbourne Corporation of Australia Pty Limited	623,208	0.52
Allan J Heasman Pty Limited	505,100	0.42
Julian Tertini	480,000	0.40
Alexander Beard & Pascale Beard	469,000	0.39
Cannington Corporation Pty Limited	466,094	0.39
John Angela Pty Limited	445,000 ────────	0.37 ──────
	99,581,769 ════════	83.30 ══════

Voting Rights

The Company's constitution details the voting rights of members and states that every member, present in person or by proxy, shall have one vote for every ordinary share registered in his or her name.

Registered Office

The Company is registered and domiciled in Australia. Its registered office and principal place of business are at Suite 3703, Level 37, Gateway, 1 Macquarie Place, Sydney NSW 2000.

AI assistant

CVC LIMITED — Annual Report 2017

64728_rns_2017-08-20_23fb0efa-f13b-4c0f-b1d0-4ef544ed5599.pdf

RESULTS ANNOUNCEMENT FOR THE YEAR ENDED JUNE 30, 2017

COMMENTARY

Listed Investments

Property

Private Equity

Funds Management

Controlled Investees

Balance Sheet Strength

Capital Management

2018 OUTLOOK

Appendix 4E

Preliminary Final Report Results for announcement to the market

Dividends (distributions)

Net tangible asset per security

Commentary

FINANCIAL REPORT

DIRECTORS' REPORT

DIRECTORS

John Douglas Read (Chairman)

Alexander Damien Harry Beard (Managing Director and Company Secretary)

Ian Houston Campbell (Non-Executive Director)

COMPANY SECRETARIES

John Andrew Hunter

KEY MANAGEMENT PERSONNEL

DIRECTORS' REPORT (CONTINUED)

DIRECTORS' AND KEY MANAGEMENT PERSONNEL'S INTERESTS

OVERVIEW OF ACTIVITIES

DIVIDENDS

PRINCIPAL ACTIVITIES

CONSOLIDATED RESULTS

DIRECTORS' REPORT (CONTINUED)

REVIEW OF OPERATIONS

Listed Investments:

Private Equity:

Property:

DIRECTORS' REPORT (CONTINUED)

REVIEW OF OPERATIONS (CONTINUED)

Property (continued):

Funds Management:

Controlled investees

STATE OF AFFAIRS

LIKELY DEVELOPMENTS

ENVIRONMENTAL REGULATION

EVENTS SUBSEQUENT TO BALANCE DATE

SHARE OPTIONS

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS

a) Indemnification

b) Insurance Premiums

DIRECTORS' REPORT (CONTINUED)

REMUNERATION REPORT (AUDITED)

Remuneration philosophy

Remuneration structure

Individual remuneration disclosures:

DIRECTORS' REPORT (CONTINUED)

REMUNERATION REPORT (AUDITED) (CONTINUTED)

Remuneration of key management personnel (continued):

DIRECTORS' REPORT (CONTINUED)

REMUNERATION REPORT (AUDITED) (CONTINUTED)

Executive contractual arrangements

Consequences of performance on shareholder wealth

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

AUDITOR'S INDEPENDENCE DECLARATION

(AND ITS CONTROLLED ENTITIES)

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2017

(AND ITS CONTROLLED ENTITIES)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

(AND ITS CONTROLLED ENTITIES) CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Notes

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2017

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

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

(AND ITS CONTROLLED ENTITIES)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)

NOTE 1: STATEMENT OF ACCOUNTING POLICIES

1.1 Basis of Preparation

Critical accounting estimates

CVC LIMITED Annual Report 2017