CVC LIMITED — Interim / Quarterly Report 2003

Feb 27, 2003

CONTINENTAL VENTURE CAPITAL LIMITED

ACN 002 700 361

Level 42, AAP Centre 259 George Street Sydney NSW 2000 Australia Tel: (02) 9087 8000 Fax: (02) 9087 8088 www.cvcltd.com.ou 28 February 2003

The Manager Company Announcement: Australian Stock Exchange Limited

By Facsimile: 1300 300 021

Dear Sir/ Madam

We are pleased to enclose, in accordance with Listing Rule 4.1.1 of the Australian Stock Exchange, Continental Vanture Capital Limited's Appendix 4B report for the half year ended 31 December 2002.

Yours faithfully CONTINENTAL VENTURE CAPITAL LIMITED

Alexander D. H. Beard

CVC

团002

Appendix 4B Half yearly/preliminary final report

Rules 4.1, 4.3

Appendix 4B

Half yearly/preliminary final report

Introduced 30/6/2002.

ेदे पान

Name of entity Continental Venture Capital Limited Half year cnded ('current period') Preliminary Half yearly ABN final $(\textit{tick})$ $(uck)$ $31^st$ December 2002 34 002 700 361 For announcement to the market \$A'000 Extracts from this report for announcement to the nurket (see note 1) 1,377 85% to trp/down Revenues from ordinary activities (item $1.1$ ) 52% 1,388 to Profit (loss) from ordinary activities after tax up/down attributable to members (item 1.22) $N/A$ Profit (loss) from extraordinary items after to. gain (loss) attributable to members (item $2.5(d)$ ) оf 1,388 52% to Net profit (loss) for the period attributable to inembers up/down $(i$ tem $1.11)$ Franked amount per Amount per security Dividends (distributions) security Interim dividend (Half yearly report only - i/em 15.6) Nil¢ Nil¢ Nile Nil¢ Previous corresponding period *Record date for determining entitlements to the $N/A$ dividend Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market: Revenues were significantly lower than the prior year as the prior year included the following major items: \$3.4million relating to the Clinical Waste business which was disposed during the second half of 2001-02. \$2.4 million relating to the discontinuance of proportionate accounting in relation to a joint venture. \$1.3million of proceeds from share sales. Disposals of investments are made sporadically and only ٠ \$60,000 was raised in the current half year. Profit for the half year was lower than the prior year comparative as a result of: \$0.8million of provisions for unrealised teductions in the market value of part of the listed investment portfolio. \$0.1 million loss on the disposal of listed investments (2001: \$1.2 million profit). If this is a half yearly report it is to be read in conjunction with the most recent annual financial report.

$+$ See chapter 19 for defined terms.

$\tau = \sqrt{2}$

$\mathbf{v}{\text{eff}} = -\mathbf{v}{\text{eff}}$

Appendix 4B Half yearly/preliminary final report

---

Condensed consolidated statement of financial performance

---

		Current period - \$A'000	Previous corresponding period - \$A'000
1.1	Revenues from ordinary activities (see tiems 1.23 $-1.25$	1,377	8,942
1.2	Expenses from ordinary activities (see items 1.26	3,173	8,564
1.3	& 1.27) Borrowing costs		180
1.4	Share of net profits (losses) of associates and joint venture entities (see item 16.7)	3,564	3,250
		1,768	3,448
1.5 1.6	Profit (loss) from ordinary activities before tax Income tax on ordinary activities (see t ote 4)	(353)	(464)
1.7	Profit (loss) from ordinary activities after tax	1,415	2.984
1.8	Profit (loss) from extraordinary items after tax (see item $2.5$ )
1.9	Net profit (loss)	1,415	2,984
1.10	Net profit (loss) attributable to outsid: + equity interests	(27)	(91)
1.11	Net profit (loss) for the period attributable to members	1,388	2,893

Non-owner transaction changes in equity

1.12	Increase (decrease) in revaluation reserves
1.13	Net exchange differences recognised in equity
1.14	Other revenue, expense and initial adjustments recognised directly in equity (attach 1:tails)
1.15	Initial adjustments from UIG transitional provisions adopted by an associate enity	(805)
1.16	Total transactions and adjustments recognised directly in equity (items $1.12$ to $1.15$ )	(805
1.17 1	Total changes in equity not resulting from transactions with owners as owners	583	2,893

Earnings per security (EPS)	Current period	Previous corresponding Period
Basic EPS 1.18	$1.26$ cents	$2.64$ cents
Diluted EPS 1.19	$1.26$ cents	$2.64$ cents

$+$ See chapter 19 for defined terms.

के प्रदेश
जन्म

$\mathbb{P}_{\mathbb{P}^2}$

$\sim 10^{-2}$

---

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current \$A 000	period ٠	Previous corresponding period - SA'000
1,20	Profit (loss) from ordinary activities after tax		1,415	2.984
	$(i$ tem $1.7)$		(27)	(91)
1.21	Less outside + equity interests
1,22	Profit (loss) from ordinary activities after tax, attributable to members		1,388	2.893

Revenue and expenses from ordinary activities

(see note $15$ )

,		Current SA'000	period	Previous corresponding period - SA'000
1.23	Revenue Sales - Waste Processing Proceeds from Shares Sales		60	3,400 1,346
1.24	Other Dividends - Other Parties Interest - Related Parties Interest - Other Parties Effect of discontinuance of proportionate accounting in relation to Joint Venture Other		3 228 993 93 1,377	428 122 1,215 2,378 53 8,942
1.25	Expenses Costs of Shares Sold Employee Expenses Depreciation and Amortisation Management and Consultancy Effect of discontinuance of proportionate accounting in relation to Joint Venture Loans Written-off Loan Provisions Written Back Unrealised Loss on Investments Other Expenses		154 1,354 3,733 (3,040) 820 152 3,173	138 1,031 304 1,071 2,378 751 2,891 8,564
1.26	Borrowing Costs			180
1.27	Associated Equity Accounted Income		3,564	3,250
	Net Profit Before Tax		1,768	3,448

⁺ See chapter 19 for defined terms.

┑

Appendix 4B Half yearly/preliminary final report

Capitalised outlays

$\sim 10^{-1}$

έg.

1.28	Interest costs capitalised in asset value.	م
1.29	Outlays capitalised in intangibles (unless, arising from an $^+$ acquisition of a busine is)

Consolidated retained profits

		Current period - \$A 000	Previous corresponding period - \$A'000
1.30	Retained profits (accumulated losses) at the beginning of the financial period	51.589	42,807
1.31	Net profit (loss) attributable to members (item 1.1I)	1,388	2,893
1.32	Net transfers from (to) reserves (details if material)
1.33	Net effect of changes in accounting policies
	Net decrease in equity on the adoption of UIG42 regarding deferred expenditure by associated entity	(805)
1.34	Dividends and other equity distributions paid or payable	(1,646)	(1, 372)
1.35	Retained profits (accumulated losses) at end of financial period	50,526	44.328

Intangible and extraordinary items

		Consolidated - current period
		Before 1ax \$A'000	Related tax \$A'000	Related outside +equity interests SA'000	Amount (after $\tan$ ) attributable to members SA'000
		(a)	(b)	$\mathsf{(c)}$	(d)
2.1	Amortisation of goodwill	N/A
2.2	Amortisation of other intangibles
23	Total amortisation of intangibles
24	Extraordinary items (details)	N/A
2.5	Total extraordinary items

$+$ See chapter 19 for defined terms.

74

$\mathcal{L}_{\mathbf{Z}}(\mathbf{y})$ , where

$\bar{1}$

$\mathbf{r}$

Appendix 4B
Half yearly/preliminary final report

	Comparison of half year profits (Preliminary final report only)	Current year - \$A'000		Previous year - \$A'000
.3.1	Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the $Ist$ half year (item 1.22 in the half yearly report)	N/A
3.2	Consolidated profit (loss) from ordinary activities after tax attributable to members for the 2nd half year
	Condensed consolidated statement:	of end At	As shown in last	As in last half
	of financial position	current period \$A'000	annual report SA 000	yearly report SA'000
	Current assets
4.1	Cash	1,519	4,439	1,388
4,2	Receivables	17,106	9,629	18,791
4.3	Investments	10,649	9,686	3,381
4.4	Inventories			62
4.5	Tax assets	80	1,899
4,6	Other (provide details if material)	123	322	415
4.7	Total current assets	29,477	25,975	24,037
	Non-current assets
4.8	Receivables	15,302	21,542	13,615
4.9	Investments (equity accounted)	28,090	26,554	24,492
4.10	Other investments	6,674	6,777	6,683
4.11	Inventories
4,12	Exploration and evaluation expenditure capitalised (see para .71 of AASB 1022)
4.13	$($ + mining properties Development entities)
4.14	Other property, plant and equipment $(\text{net})$			4.932
4.15	Intangibles (net)
4.16	Tax assets	3	3
4.17	Other (provide details if material)			712
4.18	Total non-current assets	50,069	54,876	50,434
4.19	Total assets	79,546	80,851	74,471

⁺ See chapter 19 for defined terms.

$\mathcal{L}{\mathbf{a}}$ , $\mathcal{L}{\mathbf{a}}$ , $\mathcal{L}_{\mathbf{a}}$

l,

	Appendix 4B
Half yearly/preliminary final report

		cnd οf At	As shown in last	As in last half
		current period SA'000	annual report \$A'000	yearly report SA'000
	Current liabilities
4.20	Payables	1,434	1,425	2,435
4.21	Interest bearing liabilities
4.22	Tax liabilities
4.23	Provisions exc. tax liabilities			409
4.24	Other (provide details if material)
4.25	Total current liabilities	1,434	1,425	2,844
	Non-current liabilities
4.26	Payables			11
4.27	Interest bearing liabilities	100	100	100
4.23	Tax liabilities	213	491
4.29	Provisions exc. tax liabilities
4.30	Other (provide details if material)
4.31	Total non-current liabilities	313	591	111
4.32	Total liabilities	1,747	2,016	2,955
4.33	Net assets	77,799	78,835	71,516
	Equity
4.34	Capital/contributed equity	26.634	26,634	26,634
4.35	Reserves
4.36	Retained profits (accumulated losses)	50,526	51,589	44,328
437	Equity attributable to members of the parent entity	77,160	78,223	70,962
4.38	Outside + equity interests in controlle1 entities	639	612	554
4.39	Total equity	77,799	78,835	71,516

4.40	Preference capital included as part of $\vert$ T.J		N/A

$\bar{.}$

$\bar{1}$ $\frac{1}{4}$

$+$ See chapter 19 for defined terms.

$\mathbf{r}$ .

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenciture capitalised
(To be completed only by entities with mining interess if amounts are material. Include all expenditure incurred.)

$\overline{ }$

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

Development properties

(To be completed only by entities with mining interes's if amounts are material)

		Current period \$A'000	Previous corresponding period - \$A 000
6.1	Opening balance	N/A
6.2	Expenditure incurred during current period
6.3	Expenditure transferred from exploration and evaluation
6.4	Expenditure written off during current period
6.5	Acquisitions, disposals, revaluation increments, etc.
6.6	Expenditure transferred to mine properties
6.7	Closing balance as shown in the consolidated balance sheet ( item 4.13 )

⁺ See chapter 19 for defined terms.

$\sim 10^{-4}$

$\sim$

$\sigma_{\rm{eff}}$

		Current period \$A'000	Previous corresponding period - \$A'000
	Cash flows related to operating activities
7.1	Receipts from customers		2,912
7.2	Payments to suppliers and employees	(1, 362)	(3,825)
7.3	Dividends received from associates	1,222	506
7.4	Other dividends received
7.5	Interest and other items of similar mature received	251	882
7.6	Interest and other costs of finance paid		(174)
7.7	Income taxes paid	(119)	(822)
7.8	Income taxes repaid	1,307
7.8	Other (provide details if material)	6	46
7.9	Net operating cash flows	1,305	(475)

Condensed consolidated statement of cash flows

		Current period \$A'000	Previous corresponding period $-$ \$A'000
	Cash flows related to investing activities
7.10	Payment for purchases of propert / plant and equipment		(1,144)
7.11	Proceeds from sale of property, plant and equipment
7.12	purchases of Payment for equity investments	(1,829)	(1,895)
7.13	Proceeds from sale of equity investments	56	13,043
7.14	Loans to other entities	(7,008)	(5,329)
7.15	Loans repaid by other entities	6,147	1,718
7.16	Other (provide details if material)	56
7.17	Net investing cash flows	(2,578)	6,393
	Cash flows related to financing activities
7.18	Proceeds from issues of + securities (shares, options, etc.)
7.19	Proceeds from borrowings

⁺ See chapter 19 for defined terms.

$\ddot{\phantom{a}}$

$\sigma_{\rm{eff}}$

الجاري والتواط

7.20	Repayment of borrowings		(9, 450)
7.21	Dividends paid	(1,646)	(1,372)
7.22	Other (provide details if material)
7.23	Net financing cash flows	(1,646)	(10, 822)
7.24	Net increase (decrease) in cash held	(2,919)	(4,904)
7.25	Cash at beginning of period (see Reconciliation of cash)	4,438	6,292
7.26	Exchange rate adjustments to item 7.35.
7.27	Cash at end of period (see Reconciliation of cash)	1,519	1,388

Appendix 4B Half yearly/preliminary final report

Non-cash financing and investing activities

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

$N/A$

Reconciliation of cash

	Reconciliation of cash at the end of the period (15 shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current period \$A'000	Previous corresponding period - SA 000
R 1	Cash on hand and at bank	1,519	1,388
8.2	Deposits at call
8.3	Bank overdraft
8.4	Other (provide details)
8.5	Total cash at end of period (item 7.27)	1,519	1.388

⁺ See chapter 19 for defined terms.

$\bar{1}$

$\mathbf{r}$

$\ddot{\mathrm{1}}$

Other notes to the condensed financial statements

Ratios		Current period	Previous corresponding Period
9.1	Profit before tax / revenue Consolidated profit (loss) from ordinary activities before tax (item $1.5$ ) as a percentage of revenue (item 1.1)	128.4%	38.6%
9.2	Profit after tax $/$ + equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members $(item I. II)$ as a percentage of equity (similarly attributable) at the end of the period $(it \alpha)$ 4.37)	1.80%	4.21%

$CVC$

Earnings per security (EPS)

Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of 10. AASB 1027. Earnings Per Share are as follows.

Net profit for the period after tax attributable to members: \$1,388,000

Weighted average number of shares in issue during the period: 109,736,032

Basic and diluted EPS calculated thereon: 1.27 cents per share

NTA backing (see note 7)	Current period	Previous corresponding period
Net tangible asset backing per + ordinan. security	$70.3$ cents	$64.7$ cents

⁺ See chapter 19 for defined terms.

Discontinuing Operations

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

ſ,

\$

CVC

12.1	Discontinuing Operations
------	--------------------------	--

$N/A$

Control gained over entities having material effect

$N/A$

$11'$ A

Name of entity (or group of 13.1 entities)

Consolidated profit (loss) from ordinary activities and

• extraordinary items after tax of the controlled entity (or $13.2$ group of entities) since the date in the current period on which control was ⁺acquired
• 13.3 Date from which such profit has been cale ilated

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

Loss of control of entities having material effect

14.1 Name of entity (or group of entities)

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

14.3 Date to which the profit (loss) in item 14.2 has been calculated

Consolidated profit (loss) from ordinary activities and

extraordinary items after tax of the controlled entity (or group $14.4$ of entities) while controlled during the whole of the previous corresponding period

Contribution to consolidated profit (loss) : rom ordinary 14.5 activities and extraordinary items from sale of interest leading to loss of control

$\mathbb{S}$
S
S

$\ddot{\phantom{0}}$

Appendix 4B Half yearly/preliminary final report

Dividends (in the case of a trust, distributions)

15.1 Date the dividend (distribution) is payable

+Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if ⁺securities are not ⁺CHESS approved,

CVC

$15.2$ or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if ⁺securities are ⁺CHESS approved)

N/A
-	j

$N/A$

If it is a final dividend, has it been declared? $15.3$ (Preliminary final report only)

Amount per security

		Amount per security	Franked amount per security at % tax (see note	Amount per security of foreign source dividend
15.4	(Preliminary final report only) Final dividend: Current year	$N/A$ ¢	¢	¢
15.5	Previous year	¢	ç.	¢
15.6	(Half yearly and preliminary final reports) Interim dividend: Current year	Nil¢	Nil¢	Nilc
15.7	Previous year	Nil¢	Nile	Nil¢

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

(Preliminary final report only)

		Current year	Previous year
	$15.8$ +Ordinary securities	$N/A\ell$
15.9	Preference +securities	c

⁺ See chapter 19 for defined terms.

$\epsilon$ .

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

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

The ⁺dividend or distribution plans shown below are in operation.

$N/A$

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

$N/A$

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

During the period a dividend of 1.5 cents (2001: 1.25 cents) per share fully franked was paid to shareholders.

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

entities':	Group's share of associates' and joint venture	Current period SA'000	Previous corresponding period - \$A 000
16.1	Profit (loss) from ordinary activities before tax	4,365	3,250
16.2	Income tax on ordinary activities	801	710
16.3	Profit (loss) from ordinary activities after tax	3,564	2,540
16.4	Extraordinary items net of tax
16.5	Net profit (loss)	3,564	2,540
16.6	Adjustments
16.7	Share of net profit (loss) of associates and joint venture entities	3,564	2,540

⁺ See chapter 19 for defined terms.

$\epsilon_{\rm{max}}$

$\sim$ $\sim$

$\mathbf{v}(\omega)$

Appendix 4B Half yearly/preliminary final report

Material interests in entities which are not controlled entities

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

CVC

Name of entity	Percentage of ownership interest held at end of period or date of disposal		Contribution to net profit (loss) (item 1.9)
Equity accounted 17.1 associates and joint venture entities	Current period	Previous corresponding period	Current period \$A'000	Previous corresponding period - \$A'000
Sunland Group Ltd	28.63%	31.73%	2,193	884
Chevron Developments Joint Venture	50%	50%	986	2,030
Bel Air Real Estate Joint Venture	50%	50%	42	125
Skyline Investments Australia Joint Venture	50%	50%	343	211
Total 17.2			3,564	3,250
17.3 Other material interests	N/A
Total 17.4

Issued and quoted securities at end of current period

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

	Category of + securities	Total number	Number quoted	Issue price per security (see note 14) (cents)	Amount paid up рег security (sec note $14)$ (cents)
18.1	Preference + securities (description)	$N/\lambda$
18.2	Changes during current period (a) Increases through issues (b) Decreases through returns capital, buybacks. оf redemptions
18.3	+ Ordinary securities	109,736,032	109,736,032	20 cents	20 cents
18.4	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks
18.5	+ Convertible debt securities (description and conversion factor)	N/A

⁺ See chapter 19 for defined terms.

$\sigma_{\rm{max}}$

$\sigma_{\rm{max}}$

Appendix 4B Half yearly/preliminary final report

18.6	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted
18.7	Options (description and conversion factor)	N/A	Exercise price	Expiry date (if any)
18.8	Issued during current period
18.9	Exercised during current period
18.10	Expired during current period
18.11	Debentures (description)	N/A
	Changes during current period
18.12	(a) Increases through issues
	(b) Decreases through securities matured, converted
18.13	Unsecured notes (description)	N/A
	Changes during current period
18.14	(a) Increases through issues
	(b) Decreases through securities matured, converted

Segment reporting

Refer "Annexure A"

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029: Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the Corporations Act) and may be incorporated into the circors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NU. If there is insufficient space to comment, attach notes to this report.) $\frac{1}{2}$

⁺ See chapter 19 for defined terms.

Basis of financial report preparation

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

Material factors affecting the revenues and expenses for the current period were as follows:

• Provisions against investments carrying values to reflect market values of \$0.8million.
• The write-off of \$3.7 million of a loan $p x$ suant to the dissolution of a joint venture agreement and the reversal of a provision of \$3.0million against the same loan..
• 19.3 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

$N/A$

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

The company has franking credits available cf \$1,284,189, sufficient to allow it to pay up to \$2,996,440 of fully franked distributions.

The Directors have not recommended a dividend at this time.

The company has retained profit reserves of \$3,787,293 available for the payment of dividends.

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

$N/A$

$+$ See chapter 19 for defined terms.

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

$_{\rm cyc}$

$N/A$

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

$N/A$

$N/A$

Additional disclosure for trusts

Number of units held by the management 20.1 company or responsible entity or their related parties.

A statement of the fees and corruissions payable to the management company or responsible entity.

20.2 Identify:

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

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place $N/A$ Date Time Approximate date the $+$ amnual report $v \perp 1$ be available

⁺ See chapter 19 for defined terms.

Compliance statement

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

CVC

Identify other standards used

$\vert$ NA

• $\overline{2}$ This report, and the "accounts upon which the report is based (if separate), use the same accounting policies.
• $\overline{\mathbf{3}}$ This report does/does not* (delete one) give a true and fair view of the matters disclosed (see $note$ 2).
• This report is based on $^+$ accounts to which one of the following applies. $\overline{4}$ (Tick one)

The I	The + accounts have
$:$ $\tau$ accounts have	been
been	Χ
aud ted.	subject to review.
+ accounts are in the The I	The "accounts have not yet

process of being audited or subject to review.

• 5 If the audit report or review by the auditor is not attached, details of any qualifications are attached/will follow immediately they are available* (delete one). (Half yearly report only the audit report or review by the $x_i$ ditor must be attached to this report if this report is to satisfy the requirements of the Corporations Act.)
• 6 The entity has a formally constituted audit committee.

Sign here:	Coampany Secretary	Date: 28 th February 2003
Print name: .	Alexander Reard

AILAGHUCI DUAIU Notes

1. For announcement to the market The percentage changes referred to in this section are the percentage changes calculated by corrparing the current period's figures with those for the previous corresponding period. Do not show percentage changes if the change is from profit to loss or loss to profit, but still show whether the change was up or down. If changes in accounting policies or procedures have had a raiterial effect on reported figures, do not show either directional or percentage changes in profits. Explain the reason for the omissions in the note at the end of the announcement section. Entities are encouraged to attach notes or fuller explanations of any significant changes to any of the ix-ms in page 1. The area at the end of the announcement section can be used to provide a cross reference to any such attachment.

⁺ See chapter 19 for defined terms.

1. True and fair view If this report does not give a true and fair view of a matter (for example, because compliance with an Accounting Standard is required) the entity must attach a note providing additional information and explanations to give a true and fair view.

3. Condensed consolidated statement of financial performance

• The definition of "revenue" and an explanation of "ordinary activities" are set Item $1.1$ out in AASB 10(4): Revenue, and AASB 1018. Statement of Financial Performance.
• This item refers to the total tax attributable to the amount shown in item 1.5. Item $1.6$ Tax includes incorre tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eg. fringe benefits tax).
• 1. Income tax If the amount provided for income tax in this report differs (or would differ but for compensatory items) by more than 15% from the amount of income tax prima facie payable on the profit before tax, the entity must explain in a note the major items responsible for the difference and their amounts. The rate of tax applicable to the franking amount per dividend should be inserted in the heading for the column "Franked amount per security at % tax" for items 15.4 to 15.7.

5. Condensed consolidated statement of financial position

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

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

Condensed consolidated statement of cash flows For definitions of "cash" and other terms used in this report see AASB 1026: Statement of Cash Flows. Entities should follow the form as closely as possible, but variations are permitted if the directors (in the case of a trust, the management company) believe that th s presentation is inappropriate. However, the presentation adopted must meet the requirements of $\Lambda$ ASB 1026. Mining exploration entities may use the form of cash flow statement in Appendix 5B.

• 1. Net tangible asset backing Net tang lile assets are determined by deducting from total tangible assets all claims on those assets ranking ahead of the +ordinary securities (ie, all liabilities, preference shares, outside +equity interests etc). +Mining entities are not required to state a net tangible asset backing per +ordinary security.
• 1. Gain and loss of control over entities The gain or loss must be disclosed if it has a material effect on the +accounts. Details must include the contribution for each gain or loss that increased or decreased the entity's consolidated profit (loss) from ordinary activities and extraordinary items after tax by more than 5% compared to the previous corresponding period.

⁺ See chapter 19 for defined terms.

• 1. Rounding of figures This report anticipates that the information required is given to the nearest \$1,000. If an entity reports exact figures, the \$A'000 headings must be amended. If an entity qualifies under ASIC Class Order $98/0$ 0.0 dated 10 July 1998, it may report to the nearest million dollars, or to the nearest \$100,000, and the \$A'000 headings must be amended.
• 1. Comparative figures Comparative figures are to be presented in accordance with AASB 1018 or $AAS\hat{B}$ 1029 Interim Financial Reporting as appropriate and are the unadjusted figures from the latest annual or half year report as appropriate. However, if an adjustment has been made in accordance with an accounting standard or other reason or if there is a lack of comparability, a note explaining the position should be attached. For the statement of financial performance, AASB 1029 Interim Financial Reporting requires information on a year to date basis in addition to the current interim period. Normally an Appendix 4B to which AASB 1029 Interim Financial Reporting applies would be for the half year and consequently the information in the current period is also the year to date. If $\varepsilon_{1}$ Appendix 4B Half yearly version is produced for an additional interim period (eg because of a change of reporting period), the entity must provide the year to date information and comparatives required by AASB 1029 Interim Financial Reporting. This should be in the form of a multi-column version of the consolidated statement of financial performance as an attachment to the additional Appendix 4B.
• 1. Additional information An entity may disclose additional information about any matter, and must do so if the information is material to an understanding of the reports. The information may be an expansion of the material contained in this report, or contained in a note attached to the report. The requirement under the listing rules for an entity to complete this report does not prevent the entity issuing reports more frequently. Additional material lodged with the +ASIC under the Corporations Act must also be given to ASX. For example, a director's report and declaration, if lodged with the +ASIC, nust be given to ASX.
• 1. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the stundards used do not address a topic, the Australian standard on that topic (if one exists) must be corridied with.
• 1. Corporations Act financial statemen!: This report may be able to be used by an entity required to comply with the Corporations Act as part of its half-year financial statements if prepared in accordance with Australian Accounting Standards.
• 1. Issued and quoted securities The issue price and amount paid up is not required in items 18.1 and 18.3 for fully paid securities.
• 1. Details of expenses AASB 1018 requires disclosure of expenses from ordinary activities according to either their nature or function. For foreign entities, there are similar requirements in other accounting standards accepted by ASX. AASB ED 105 clarifies that the disclosures required by AASB 1018 must be either all according to nature or all according to function. Entities must disclose details of expenses using the layout (by nature or function) employed in their +accounts.

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

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

$+$ See chapter 19 for defined terms.

$\frac{1}{2}$

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

17. Discontinuing operations

Half yearly report

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

Preliminary final report

Entities must either provide a description of any significant activities or events relating to discontinuing operations equivalent to that required by paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they are required to disclose in their +accounts in accordance with AA3B 1042 Discontinuing Operations.

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

18. Format

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

⁺ See chapter 19 for defined terms.

"Annexure A"

Continental Venture Capital Limited ACN 002 700 361

Notes accompanying the Half Yearly Statement For the six months ended 31 December 2002

	Consolidated
	2002	2001
	\$'000	\$'000
NOTE 1: INCOME TAX
The prima facie tax on operating profit is reconciled to the income
tax provided in the accounts as follows:
Prima Facie income tax expense calculated at 30% on operating	530	1,034
profit
Less Income tax attributable to equity accounted profits	(356)	(265)
Non taxable/deductable items	(225)	(156)
Other timing adjustments		(149)
Prior Year Under Provision	404
Income tax attributable to operating profit	353	464

NOTE 2: STATEMENT OF OPERATING SEGMENTS

Geographic Segments

The economic entity predominantly operates in Australia

Industrial Segments

	PROPERTY J.IVELOPMENT	VENTURE CAPITAL & INVESTMENT	ELIMINATIONS	TOTAL
	\$000	\$3000	\$'000	$$^{\circ}000$
Revenue outside the group	551	1,246	(420)	1,377
Associates Net Profits	3.564	-		3,564
Total Revenue	4,115	1.246	(420)	4,941
Segment Result Before Income Tax	2.799	(1,031)	$\rightarrow$	1,768

NOTE 3: CONTINGENT LIABILITIES

Changes to the nature of contingent liabilities disclosed in the $30^th$ June 2002 financial statements are as follows:

• The company no longer has an interest in the "Keriland Joint Venture" and is no longer liable $(i)$ for a share of the liabilities of Kaniland.
• (ii) The company has expensed within these financial statements an additional \$509,000 of the tax paid to the ATO pending resolution of disputed assessments.

CVC

CONTINENTAL VENTURE CAPITAL LIMITED AND ITS CONTROLLED ENTITIES

DIRECTORS' REPORT

The Directors present their report rogether with the consolidated financial report for the half-year ended 31st December 2002 and the auditors' review thereon.

Directors

The Directors of the Company durit g or since the end of the half-year are:

Vanda Russell Gould (Chairman)

B. Comm. (Uni. of NSW), M. Comm. (Uni. of NSW) Board member since 1996. Fellow of the Institute of Chartered Accountants in Australia. Director of Vita Life Sciences and numerous private and public companies including educational establishments.

John Scott Leaver (Non Executive Director) B.Ec. (Uni. of Sydney) Licensed Securities Dealer. Board member since 1984. Chairman of Sunland Group Limited.

John Douglas Read (Non Executive Director)

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

Board member since 1989 and Chairman of the Environmental Group Limited. Mr Read is a Fellow of the Australian Irstitute of Company Directors.

Alexander Damien Harry Beard (Non Executive Director and Company Secretary) B. Comm. (Uni. of NSW).

Associate of the Institute of Chartened Accountants in Australia. Director of Greens Foods Limited and numerous private and public companies.

John Thomas Riedl (Non Executive Director) B. Sc, B.E. (Elect), (Hons.) (Sydney) Director of numerous public and private companies. Appointed as a Director on 27th November 2002.

Review of Operations

During the six months ended 31st December 2002, the Company continued its existing venture capital operations.

$_{\rm cyc}$

CONTINENTAL VENTURE CAPITAL LIMITED AND ITS CONTROLLED ENTITIES

Operating Results

The net profit of the company and its controlled entities for the period, after providing for income tax, amounted to \$1,388,000. Income tax of \$353,000 is payable on operating profits.

Dividends

Dividends of \$1,646,000 were paid during the period. The directors do not recommend any dividends be paid at this time.

Indemnification and Insurance of Officers and Auditors

The Company has not, during or since the end of the financial period, in respect of any person who is or has been an auditor of the Company or a related body corporate:

• $(i.)$ Indemnified or made any relevant agreement for indemnifying against a liability, including costs and expenses in successfully defending legal proceedings; or
• $(ii.)$ Paid or agreed to pay a premium in respect of a contract insuring against a liability 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, its controlled entities and certain other directorships of associated companies. In accordance with sub section 300(3) of the Corporations Law further details have not been disclosed due to confidentiality provisions contained in the insurance contract.

Rounding Amounts

The amounts in the consolidated financial statements and the Director's report have been rounded to the nearest thousand dollars unless specifically stated to be otherwise.

Signed and Sydney this 28^th day of February 2003 in accordance with a Resolution of

Director

DER D. H. BEARD Director

۷

CVC

DIRECTORS' DECLARATION

The director's declare that:

• the financial statements and associated notes comply with Accounting Standard $(a)$ 1029: Interim Financial Reporting and the Corporations Act 2001; and $(b)$
• the financial statements and notes give a true and fair view of the financial position as at 31 December 2002 and performance as represented by the results of its operation and cashflows of the economic entity for the half-year then $(c)$
• in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay it's debts as when they become due and payable.

This statement has been made in accordance with a resolution of directors.

Signed at Sydney this 28th day of February 2003.

Director

ALEXANDER D. H. BEARD Director

Chartered Accountants

CONTINENTAL VENTURE CAPITAL LIMITED AND CONTROLLED ENTITIES

INDEPENDENT REVIEW REPORT

TO THE MEMBERS OF CONTINENTAL VENTURE CAPITAL LIMITED

Scope

We have reviewed the financial report of Continental Venture Capital Limited and Controlled Entities for the half-year ended 31 December 2002 as set out in the Australian Stock Exchange Limited's Appendix 4B. The financial report includes the consolidated financial statements of the consolidated entity comprising the company and the entities it controlled at the end of the half-year or from the time to time during the half-year. The company's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come ic our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements and statutory requirements, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and performance as represented by the results of its operations and its cash flows, and in order for the company to lodge the financial report with the Australian Stock Exchange Limited and the Australian Securities & Investments Commission.

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

Statement

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

• a) The Corporations Act 2001, including
• $(i)$ giving a true and fair view of the consolidated entity's financial position at 31 December 2002 and of its performance for the half-year ended on that date; and
• $(i)$ complying with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations 2001; and
• b) Other mandatory professional reporting requirements and ASX Listing Rules as they relate to Appendix 4B.

Mann

HLB Mann Judd (NSW Partnership) Chartered Accountants

P B Meade Partner

Sydney 28 February 2003

HLB Mann Judd (NSW Partnership)

Mann Judd House 159 Kent Street Sydney NSW 2000 Australia DX 10313 SSE Telephone +61 (012 9251 7711 Fax +61 (0)2 9251 7336 Email: mailbox@hlbnsw.com.au Website; www.hlb.com.au

Liability limited by the Accountants Scheme, approved under the Professional Standards Act 1994 (NSW)

Parreers: John R Biedle, S Anthroy Fittler, Matthew R Gardinar, tan D Haigh, Michael G Hutton, Dennis J Mattiske, David McGrand, Philip B Meade, Mark D Muller - Stephen K Prsan, Bruce V Rose, Darryl K Swindells, Edgar R Temple, Neil P, N ckanden.
E.Auditor – Document in Final Audit, Revlew Report

HLB Mann Judd (NSW Partnership) is a member of CLIB International and this HLB Menn Judd National Association of independent accounting firms