EV RESOURCES LTD — Interim / Quarterly Report 2006

Mar 14, 2006

APPENDIX 4D HALF YEAR REPORT
HALF YEAR REPORT
FOR THE HALF YEAR ENDED 31 DECEMBER 2005

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Name of Entity:	Richfield Group Limited
1. Details of the current and prior reporting period
Current period: Prior period:	1 July 2005 to 31 December 2005 1 July 2004 to 31 December 2004
2. Results for announcement to the market:
2.1 Revenues from ordinary activities	Down 79% to	\$'000 14
2.2 Profit (loss) from ordinary activities after tax attributable to members	Up 70% to	(66)
2.3 Net profit (loss) for the period attributable to members	Up 70% to	(66)
2.4 Dividend distributions	Amount per security	Franked amount per security
No final dividend has been proposed	Νi	Nil
2.5 Record date for determining entitlements to the dividend		N/A
2.6 Explanation of any figures in 2.1 to 2.5 that may be required	Not necessary
	Current Period	Previous Corresponding Period
3. Net tangible asset backing per ordinary security	0.00004cents	0.0009cents
4. Control gained or lost over entities during the period		Loss
4.1 Name of entity	Nil	Richfield International Limited (Formerly Richfield Shipping)
4.2 The date of the gain or loss of control	Nil	31 st August 2004
4.2.1 Where material, the contribution of such entities to the reporting entity's profit (loss) from ordinary activities	Nil	Not Material
4.2.2 Where material, the contribution of such entities to the reporting entity's profit (loss) from ordinary activities during the whole of the previous corresponding period	Nil	Not Material
5. Distributions to shareholders		N/A
6. Dividend reinvestment plan details	N/A
7. Joint Venture and associate details	N/A
8. Foreign entities accounting standards used		N/A
9. Audit/review of accounts upon which this report is based	This report is based on accounts which have not yet been audited
10. Qualifications of Audit/Review	Inherent Uncertainty regarding Going Concern

RICHFIELD GROUP LTD A.B.N. 66 009 144 503 FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER, 2005

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CONTENTS

	Page
Directors' Report	З
Directors' Declaration	4
Auditors' Independence Declaration	5
Condensed Income Statement	6
Condensed Balance Sheet
Condensed Statement of Changes in Equity	8
Condensed Cash Flow Statement	9
Notes to the Half-Year Financial Statements	10
Independent Auditors Report	20

Your directors submit the financial report of the economic entity for the half-year ended 31 December 2005.

Directors

The names of directors who held office during or since the end of the half-year:

Mr Jack Bai GuoJin Mr Christopher Bai Mr Steven Leigh Pynt

Review of Operations

The Company did not carry on a business during the half-year ended 31 December 2005. A number of investment

opportunities in the IT industry continue to be reviewed.

On the 30 November 2005 the capital restructure of the Company was completed through the in specie distribution of 4,646,760 fully paid ordinary shares in Richfield International Limited by way of a one for 100 return of capital to the shareholders of the Company.

Adoption of Australian Equivalents to IFRS

This interim financial report has been prepared under Australian equivalents to IFRS. A reconciliation of differences between previous GAAP and Australian equivalents to IFRS has been included in Note 2 of this report,

Rounding of Amounts

The economic entity has applied the relief available to it in ASIC Class Order 98/100 and accordingly certain amounts in the financial report and the directors' report have been rounded off to the nearest \$1,000.

Auditor's Declaration

The lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 5 for the half year ended 31 December 2005.

This report is signed in accordance with a resolution of the Board of Directors.

Director

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Jack Bai Dated this

$13H$ Day of March 2006 In accordance with a resolution of the directors of Richfield Group Limited, I state that:

In the opinion of the directors:

• The financial statements and notes of the consolidated entity: $\mathbf{1}$ .
• (a) comply with Accounting Standard AASB 134 "Interim Financial Reporting" and the Corporations Regulations2001; and
• (b) give a true and fair view of the economic entity's financial position as at 31 December, 2005 and of the performance for the half-year ended on that date.
• there are reasonable grounds to believe that the company will be able to pay its debts as and when they 2. become due and payable.

JACK BAI Director

Dated this 13^th day of March 2006

CHARTERED
ACCOUNTANTS
& BUSINESS
ADVISORS

A MEMBER OF
MOORES ROWLAND
INTERNATIONAL

Beatleys MRI Perth Partnership ABN 17 735 344 518

Level 1, 10 Kings Park Road West Perth WA 6005 Australia

PO Box 570 West Perth WA 6872

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T 61 8 9480 2000 F61893227787

admin@bauip.com.au www.benfleys.com

AUDITORS INDEPENDENCE DECLARATION

Auditors Independence Declaration under section 307C of the Corporation Act 2001 to the Directors of Richfield Group Limited.

I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2005, there has been:

• no contraventions of the auditor independence requirements as set out in the Corporation Act 2001 in $\mathbf{D}$ relation to the review; and
• $\mathbf{ii}$ no contraventions of any applicable code of professional conduct in relation to the review.

BENTLEYS MRI PERTH PARTNERSHIP

Mul/

MAURICE L ANGHIE PARTNER

Dated this 13^th day of March 2006.

RICHFIELD GROUP LTD A.B.N. 66 009 144 503 CONDENSED INCOME STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

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	Note	Consolidated
		As at	As at
		31 December 2005	31 December 2004
Revenues from ordinary activities		14,390	69,635
Cost of Sales		(8,254)
Management and consulting expense		(17, 155)
Legal expense
Borrowing costs expense
Interest expense
Depreciation and amortisation expenses		(1, 153)
Listing expenses
Travel and accommodation
Employee benefits expense		(46, 411)	(22, 913)
Office and administrative expense
Rent on land and buildings
Audit Fees		(8,425)	(15,930)
Capital Loss on lease improvements
Other Expenses from Ordinary Activities		1,431	(251,067)
Profit/(Loss) from continuing operations before income tax		(65, 577)	(220, 275)
Income tax expense
Profit after tax from continuing operations		(65, 577)	(220, 275)
Discontinued Operation
Loss after tax from discontinued operation
Net Profit for the period		(65, 577)	(220, 275)
Profit attributable to minority interests
Net Profit attributable to members of the parent		(65, 577)	(220, 275)
Earnings Per Share
- Basic for profit for half-year		(0.00014)	(0.00047)
- Diluted for profit for the half-year		(0.00014)	(0.00047)

The accompanying notes form part of these financial statements

RICHFIELD GROUP LTD A.B.N. 66 009 144 503
CONDENSED BALANCE SHEET AS AT 31 DECEMBER 2005

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	Note	Consolidated
		As at	As at
		31 December 2005	30 June 2005
Current Assets
Cash and cash equivalents		168,182	251,598
Trade and other receivables		25,900	78,121
Inventories			9,764
Total Current Assets		194,082	339,483
Non-Current Assets
Property, plant and equipment		7,726	9,563
Other Financial Assets		37,296	269,628
Total Non-Current Assets		45,022	279,191
Total Assets		239,104	618,674
Current Liabilities
Trade and Other Payables		220,671	312,544
Total Current Liabilities		220,671	312,544
Non-Current Liabilities
Total Non-Current Liabilities
Total Liabilities		220,671	312,544
Net Assets		18,433	306,130
Equity
Issued Capital		8,730,799	8,963,131
Reserves		(14, 291)	(24, 503)
Retained Eamings		(8,698,075)	(8,632,498)
Parent interests		18,433	306,130
Total Equity		18,433	306,130

The accompanying notes form part of these financial statements

RICHFIELD GROUP LTD A.B.N. 66 009 144 503 CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2005

S	\$	\$	\$
Share Capital
Ordinary	Retained Profits	Reserves	Total
8,963,131	(8,273,574)	(16,680)	672,877
	(220, 275)		(220, 275)
8,963,131	(8,493,849)	(16, 680)	452,602
8,963,131	(8,632,498)	(24, 503)	306,130
	(65, 57)		(65, 577)
		10,212	10,212
8,963,131	(8,698,075)	(14, 291)	250,765
(232, 332) Note 3			(232, 332)
8,730,799	(8,698,075)	(14, 291)	18,433

The accompanying notes form part of these financial statements.

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RICHFIELD GROUP LTD A.B.N. 66 009 144 503 CONDENSED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2005

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	Note	Consolidated
		31 December 2005	31 December 2004
Cash Flow from Operating Activities
Receipts from Customers		22,378	27,800
Payments to Suppliers and employees		(107, 225)	(237, 317)
Interest Received		1,431	1,405
Net cash flows from operating activities		(83, 416)	(208, 112)
Cash Flow from Financing Activities
Proceeds of borrowings
Repayment of borrowings			(71, 047)
Net cash flows used in financing activities			(71, 047)
Cash Flow from Investing Activities
Investments/Advances to Controlled Entities			(269, 628)
Payments for property, plant and equipment			(1, 331)
Net cash flows used in investing activities			(270, 959)
Net increase (decrease) in cash and cash equivalents		(83, 416)	(550, 118)
Cash relating to Subsidiary no longer part of the Group
Cash and cash equivalents at the beginning of the period		251,598	880,798
Cash and cash equivalents at the end of the period		168,182	330,680

The accompanying notes form part of these financial statements

$\Delta$

Note 1: Basis of preparation of the half-year financial report

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

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The half-year financial report should be read in conjunction with the Annual Financial report of Richfield Group Ltd as at 30 June 2005, which was prepared based on Australian Accounting Standards applicable before 1 January 2005 ('AGAAP')

It is also recommended that the half-year financial report be considered together with any public announcements made by Richfield Group Limited and its controlled entities during the half-year ended 31 December 2005 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

(a) Basis of Accounting

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Accounting Standards including AASB 134 "Interim Financial Reporting" and other mandatory professional reporting requirements.

The half-year report has been prepared on a historical cost basis, except for investment properties, land and buildings, derivative financial instruments and available-for-sale financial assets that have been measured at fair value.

For the purpose of preparing the half-year report, the half-year has been treated as a discrete reporting period.

(b) Statement of Compliance

The half-year financial report complies with Australian Accounting Standards, which include the Australian equivalents to International Financial Reporting Standards ('AIFRS'). Compliance with AIFRS ensures that the half-year financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards ('IFRS').

This is the first half-year financial report prepared based on AIFRS and comparatives for the half-year ended 31 December 2004 and full-year ended 30 June 2005 have been restated accordingly.

As this is the first interim financial report prepared under Australian equivalents to IFRS, the accounting policies applied are inconsistent with those applied in the 30 June 2005 annual report as this report was presented under previous Australian GAAP. Accordingly, a summary of the significant accounting policies under Australian equivalents to IFRS has been included below. A reconciliation of equity and profit and loss between previous GAAP and Australian equivalents to IFRS has been prepared per Note 2.

A summary of the significant accounting policies of the Group under AIFRS are disclosed below.

c) Basis of Consolidation

The consolidated financial statements comprise the financial statements of Richfield Group Limited and its subsidiaries ('the Group'). A controlled entity is any entity controlled by Richfield Group Limited. Control exists where Richfield Group Limited has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with Richfield Group Limited to achieve the objectives of Richfield Group Limited. A list of controlled entities is contained in Note 12 to the financial statements.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

Adjustments are made to bring into line any dissimilar accounting policies that may exist. All intercompany balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs cannot be recovered.

Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. Where there is loss of control of a subsidiary, the consolidated financial statements include the results for the part of the reporting period during which Richfield Group Limited has control.

(d) Intangibles

Acquired both separately and from a business combination

Intangible assets acquired separately are capitalised at cost and from a business combination are capitalised at fair value as at the date of acquisition. Following initial recognition, the cost model is applied to the class of intangible assets.

The useful lives of these intangible assets are assessed to be either finite or indefinite.

Where amortisation is charged on assets with finite lives, this expense is taken to the income statement through the 'administrative expenses' line item.

Intangible assets, excluding development costs, created within the business are not capitalised and expenditure is charged against profits in the period in which the expenditure is incurred. Intangible assets are tested for impairment where an indicator of impairment exists, and in the case of indefinite lived intangibles annually, either individually or at the cash generating unit level. Useful lives are also examined on an annual basis and adjustments, where applicable, are made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the income statement when the asset is derecognised.

(e) Income Tax

The change for current income tax expenses is based on the profit for the year adjusted for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

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Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

(f) Property, Plant & Equipment

Freehold land and buildings are measured on the cost basis.

Plant and Equipment

Plant and equipment are measured on the costs basis less depreciation and impairment losses. The carrying amount of property, plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable amounts from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to present values in determining recoverable amounts.

Subsequent costs are included in the assel's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Impairment

The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Revaluations

Following initial recognition at cost, land and buildings are carried at a revalued amount which is the fair value at the date of the revaluation less any subsequent accumulated depreciation on buildings and accumulated impairment losses.

Fair value is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm's length transaction as at the valuation date.

Any revaluation surplus is credited to the asset revaluation reserve included in the equity section of the balance sheet unless it reverses a revaluation decrease of the same asset previously recognised in the income statement.

Any revaluation deficit is recognised in the income statement unless it directly offsets a previous surplus of the same asset in the asset revaluation reserve. An annual transfer from the asset revaluation reserve is made to retained earnings for the depreciation relating to the revaluation surplus.

In addition, any accumulated depreciation as at revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained earnings.

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land is depreciated over their estimated useful lives to the economic entity commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

Class of Asset	Depreciation Rate %
Leasehold improvements	2%
Plant and Machinery	10%-20%
Office Furniture	6%-20%
Office Equipment	20%
Motor Vehicles	10%-30%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset's carrying amount is written down immedialely to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

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(g) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to entities within the economic entity are classified as finance

leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are depreciated over their estimated useful lives. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the economic entity will obtain ownership of the asset or over the term of the lease.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

(h) Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials - purchase cost on a first-in, first-out basis,

Finished goods and work-in-progress – cost of direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

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.

(i) Employee Entitlements

Provision is made for the company's liability for employee entitlements, where applicable, arising from services rendered by employees to balance date. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been measured at their nominal amount. Other employee entitlements payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those entitlements.

Contributions are made by the consolidated entity to employee superannuation funds and are charged as expenses when incurred.

(j) Cash and cash equivalents

Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less.

For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

(k) Trade and Other Receivables

Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts.

An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.

Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

(I) Revenue

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

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Sale of goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and can be measured reliably. Risks and rewards are considered passed to the buyer at the time of delivery of the goods to the customer.

Rendering of services

Revenue from the installation of fire extinguishers, fire prevention equipment and fire retardant fabrics is recognised by reference to the stage of completion.

Stage of completion is measured by reference to labour hours incurred to date as a percentage of total estimated labour hours for each contract.

Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Interest

Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset.

Dividends

Revenue is recognised when the shareholders' right to receive the payment is established.

Rental income

Rental income arising on investment properties is accounted for on a straight-line basis over the lease term. Contingent rental income is recognised as income in the periods in which it is earned.

(m) Interest-bearing loans and borrowings

All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any issue costs, and any discount or premium on settlement.

Gains and losses are recognised in the income statement when the liabilities are derecognised and as well as through the amortisation process.

(n) Payables

Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the consolidated entity. Trade payables are usually settled within 30-day terms.

(o) Foreign Currency Transactions and Balances

Both the functional and presentation currency of Richfield Group Limited and its Australian subsidiaries is Australian dollars (A\$).

Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date.

All differences in the consolidated financial report are taken to the income statement with the exception of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are taken directly to equity until the disposal of the net investment, at which time they are recognised in the income statement.

Tax charges and credits attributable to exchange differences on those borrowings are also recognised in equity.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

The functional currency of the overseas subsidiaries (Eastern Prime Corporation and Advanz International.) is Singapore dollars (SGD\$).

As at the reporting date the assets and liabilities of these overseas subsidiaries are translated into the presentation currency of Richfield Group Limited at the rate of exchange ruling at the balance sheet date and the income statements are translated at the weighted average exchange rates for the period.

The exchange differences arising on the retranslation are taken directly to a separate component of equity.

On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is recognised in the income statement.

(p) Goods and Services Tax (GST)

Revenues, expenses and assets are recognized net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognized as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST.

(g) Impairment of Assets

The carrying amounts of the consolidated entity's assets, other than stocks, are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets' recoverable amount is estimated.

An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. An impairment loss in respect of buildings carried at revalued amount is recognized in the same way as a revaluation decrease, in which case it will be charged to equity under the heading asset revaluation reserve. All other impairment losses are recognized in the profit and loss account.

The recoverable amount is the higher of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

An impairment loss is reversed if there has been a change in estimates used to determine the recoverable amount or when there is an indication that the impairment loss recognized for the asset no longer exists or decreases. An impairment loss is reversed only to the extent that the assets' carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised. A reversal of an impairment loss in respect of buildings carried at a revalued amount is recognised in the same way as a revaluation increase, in which case it will be credited directly to equity under the heading asset revaluation reserve. All other reversals of impairment are recognised in the profit and loss account.

(r) Investments

All investments are initially recognised at cost, being the fair value of the consideration given and including acquisition charges associated with the investment.

After initial recognition, investments, which are classified as held for trading and available-for-sale, are measured at fair value. Gains or losses on investments held for trading are recognised in the income statement.

Gains or losses on available-for-sale investments are recognised as a separate component of equity until the investment is sold, collected or otherwise disposed of, or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in the income statement.

Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as heldto-maturity when the Group has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not included in this classification.

Other long-term investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at amortised cost using the effective interest method.

Amortised cost is calculated by taking into account any discount or premium on acquisition, over the period to maturity.

For investments carried at amortised cost, gains and losses are recognised in income when the investments are derecognised or impaired, as well as through the amortisation process.

For investments that are actively traded in organised financial markets, fair value is determined by reference to Stock Exchange quoted market bid prices at the close of business on the balance sheet date. For investments where there is no quoted market price, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net asset base of the investment.

Purchases and sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the market place are recognised on the trade date i.e. the date that the Group commits to purchase the asset.

(s) Borrowing Costs

Borrowing costs are recognized as an expense when incurred.

(t) Going Concern

The company has incurred losses from ordinary activities. The financial statements have been drawn up on a going concern basis, which assumes that the company and the economic entity can continue operating and pay its debts as and when they become payable.

The ability of the company and economic entity to continue as a going concern is dependent upon the continued financial support of existing shareholders, additional fundraising and/or other third parties. As a result unless the foregoing occurs and continues there is uncertainty whether the economic entity will be able to continue as a going concern and therefore whether it will realise it's assets and extinguish it's liabilities in the normal course of business and at the amounts stated in the financial report.

NOTE 2: First Time Adoption of Australian Equivalents to International Financial Reporting Standards.

The impacts of adopting AIFRS on the total equity and profit after tax as reported under Australian Accounting Standards applicable before 1 January 2005 ('AGAAP') are illustrated below.

Reconciliation of total equity as presented under AGAAP to that under AIFRS $(i)$

	CONSOLIDATED
	30 June 05	31 December 04	$1$ July 04
Total Equity Under AGAAP	306,130	452,359	672.877
Adjustments to Equity	Nil	Nil	Nil
the effect Tax above of. adjustments	Νi	Nii	ΝiΙ
Total Equity under AIFRS	306,130 CONTRACTOR	452,359	672.877

Reconciliation of profit after tax under AGAAP to that under AIFRS $(ii)$

	CONSOLIDATED
	Year Ended 30 June 05	Half Year Ended 31 December 04
Profit after tax as previously reported	(358, 924)	(220, 275)
Total adjustments anticipated	Nil	Νiί
of Share based Recognition payments expensed	ΝiΙ	Nil
effect оf the. above Tax adjustments	ΝìΙ	Nil
Profit after tax under AIFRS	(358,924)	(220, 275)

Explanation of material adjustments to the cash flow statements $(iii)$

There are no material differences between the cash flow statements presented under AIFRS and those presented under AGAAP.

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NOTE 3: Distribution to Shareholders

On 30 November 2005, 4,646,760 shares with an issue value of \$0.05 were allotted to the individual shareholders of Richfield Group Limited by way of a one for 100 return of capital.

NOTE 4: Statement of Operating by Segments

The Group operated predominately in one geographical segment and one business, currently seeking business opportunities in the IT industry.

NOTE 5: Events subsequent to balance date

No events subsequent to reporting date have occurred.

NOTE 6: Contingent Liabilities and Assets

At 30 June 2005, the company was acting as guarantor for Bondshaw Holdings Pty Ltd ("Bondshaw") to Howard Mortgage Trust & Permanent Trustee Australia Limited for amounts advanced to Bondshaw of \$913,573.73. This guarantee was signed during the period when the company was trading as Oka Motor Company.

Since the last reporting date, the company's directors have dissolved the guarantee and no such contingent liability exists at reporting date.

CHARTERED ACCOUNTANTS ADVISORS

A MEMBER OF
MOORES ROWLAND
INTERNATIONAL

Bentleys MRI Perth Partnership ABN 17-735-344-518

Level 1, 10 Kings Park Read West Perth WA 6005 Australia

PO Box 570 West Perth WA 6872

J.

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1161894802000 F 61 8 9322 7787

admin@bmrip.com.au www.bentleys.com

Independent Review Report TO THE MEMBERS OF RICHFIELD GROUP LIMITED

Scope

THE FINANCIAL REPORT AND DIRECTORS' RESPONSIBILITY

The financial report comprises the balance sheet, income statement, cash flow statement, statement of changes in equity and accompanying notes to the financial statements for the consolidated entity comprising both Richfield Group Limited (the company) and the entities it controlled during the half-year, and the directors' declaration for the company, for the half-year ended 31 December 2005.

The directors of the company are responsible for the preparing a financial report that gives a true and fair view of the financial position and performance of the consolidated entity, and that complies with Accounting Standard AASB 134 "Interim Financial Reporting", in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Review approach

We conducted an independent review of the financial report in order to make a statement about it to the members of the company, and in order for the company to lodge the financial report with the Australian Stock Exchange and the Australian Securities and Investments Commission.

Our review was conducted in accordance with Australian Auditing Standards applicable to review engagements, in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with the Corporations Act 2001, Accounting Standard AASB 134 "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia, so as to present a view which is consistent with our understanding of the company's, and the consolidated entity's financial position, and of its performance as represented by the results of its operations and cash flows.

A review is limited primarily 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.

INDEPENDENCE

We are independent of the company, and have met the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001. We have given to the directors of the company a written Auditor's Independence Declaration, a copy of which is included in the Director's Report.

STATEMENT

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of the consolidated entity, comprising Richfield Group Limited and the entities it controlled during the half-year, is not in accordance with:

• (a) the Corporations Act 2001, including:
• giving a true and fair view of the financial position of the consolidated entity at 31 December 2005 and of $(i)$ its performance for the half-year ended on that date; and
• complying with Accounting Standard AASB 134 "Interim Financial Reporting" and the Corporations $(ii)$ Regulations 2001; and

(b) other mandatory financial reporting requirements in Australia.

INHERENT UNCERTAINTY REGARDING CONTINUATION AS A GOING CONCERN.

Without qualification to the statement expressed above, attention is drawn to the following matters:

The financial statements have been prepared on the basis of going concern. However the consolidated $(i)$ entity has made trading tosses since inception and the ability of the consolidated entity to continue as a going concern is dependent on the operations becoming profitable or additional funds being provided by financiers or shareholders.

BENTLEYS MRI PERTH PARTNERSHIP

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MAURICE L ANGHIE PARTNER

DATED at PERTH this 13^th day of March 2006