EXCELSIOR CAPITAL LTD — Annual Report 2011

Aug 30, 2011

CMI Limited

Results For Announcement To The Market For the Financial Year Ended 30 June 2011

Preliminary Final Report of CMI Limited for the Financial Year Ended 30 June 2011

(ABN 98 050 542 553)

This Preliminary Final Report is provided to the Australian Stock Exchange (ASX) under ASX Listing Rule 4.3A.

Current Reporting Period: Financial Year Ended 30 June 2011 Previous Corresponding Period: Financial Year Ended 30 June 2010

1

CMI Limited

Results For Announcement To The Market For the Financial Year Ended 30 June 2011

Revenue and Net Profit/(Loss)

Revenue from continuing operations Up Net profit from continuing ordinary activities after tax attributable to member Up Net profit after tax attributable to members from continuing operations Up Dividends (Distributions)	Percentage Change % Amount $’000
	29% to 102,266 1025% to 13,320 1025% to 13,320

Dividends (Distributions)
Amount per	Franked amount
security	per security
Final dividend - Ordinary	-¢	-¢
Final dividend – Class A	-¢	-¢
Interim dividend - Ordinary	-¢	-¢
Interim dividend – Class A	-¢	-¢
Record date for determining entitlements to the
dividend:
 Final dividend - Ordinary	Not Applicable
 Final dividend – Class A	Not Applicable
Brief Explanation of Revenue, Net Profit/(Loss) and Dividends (Distributions)
The directors of CMI Limited announce today revenue of $102,266 thousand, an
increase of 29% on prior year, and a profit after tax of $13,320 thousand.
A summary of all segment results can be found in Note 11 Segment reporting.
The Directors have resolved not to pay a final dividend to Ordinary or Class A
shareholders.

Net Tangible Assets Per Ordinary Security Net tangible assets per ordinary security	2011 2010
	$1.69 $1.31

2

CMI Limited

Consolidated Statement of Comprehensive Income For the Financial Year Ended 30 June 2011

Continuing Operations Note Revenue 2(a) Other income Changes in inventories Raw materials expense Sub-contractors expense Employee benefits expense Repairs, maintenance and consumables expense ASX and share register expense Occupancy expense Travel and communication expense Freight and cartage expense Depreciation and amortisation expense Borrowing costs Impairment expense Write off assets damaged in fire Other expenses from ordinary activities Profit/(Loss) from continuing operations before income tax expense 2 Income tax 13 Profit/(Loss) from continuing operations after income tax expense Profit/(Loss) from discontinued operations net of income tax 12 Profit/(Loss) for the year Other comprehensive income Foreign currency translation Other comprehensive income for the year, net of tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR Profit/(Loss) for the year is attributable to the owners of the parent Total comprehensive income for the year is attributable to the owners of the parent Earnings Per Share from continuing operations: Basic (cents per share) 7 Diluted (cents per share) 7 Earnings Per Share from continuing and discontinuing operations: Basic (cents per share) Diluted (cents per share) Notes to the financial statements are included on pages 7 to 25	2011 $’000 2010 $’000
	102,266 79,125 2,733 4,859 4,291 (164) (61,707) (46,407) (1,182) (625) (12,839) (12,250) (841) (800) (87) (111) (3,249) (3,613) (2,208) (1,753) (4,503) (2,393) (1,099) (867) (175) (298) - (8,126) - (3,536) (2,593) (2,069)
	18,807 972 (5,487) (2,412)
	13,320 (1,440) - 991
	13,320 (449) (166) 80
	(166) 80
	13,154 (369)
	13,320 (449)
	13,154 (369)
	39.46 (4.27) 39.46 (4.27) 39.46 (1.33) 39.46 (1.33)

3

CMI Limited

Consolidated Statement of Financial Position

As At 30 June 2011

Current Assets Cash and cash equivalents Trade and other receivables Inventories Total Current Assets Non-Current Assets Property, plant and equipment Other financial assets Goodwill Other intangible assets Deferred tax assets Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Borrowings Current tax payables Provisions Total Current Liabilities Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities Total Liabilities Net Assets Equity Issued Capital Reserves Accumulated losses Total Equity	Note 5 14	2011 $’000 2010 $’000
		16,099 9,052 18,276 14,794 24,976 20,685
		59,351 44,531
		4,809 4,297 8,500 8,500 6,850 6,850 2,292 1,783 455 495
		22,906 21,925
		82,257 66,456
		9,939 8,737 271 257 4,455 2,501 1,316 1,449
		15,981 12,944
		113 331 128 300
		241 631
		16,222 13,575
		66,035 52,881
		70,103 70,103 76 242 (4,144) (17,464)
		66,035 52,881

Notes to the financial statements are included on pages 7 to 25

4

CMI Limited

Consolidated Statement of Changes in Equity For the Year Ended 30 June 2011

At 1 July 2009 Profit/(Loss) for the period Net foreign exchange differences Total comprehensive income for the year Transactions with owners in their capacity as owners At 1 July 2010 Profit/(Loss) for the period Net foreign exchange differences Total comprehensive income for the year Transactions with owners in their capacity as owners At 30 June 2011	Issued Capital Reserves Retained Earnings/ Accumulated Losses Total Equity $’000 $’000 $’000 $’000
	70,103 162 (17,015) 53,250
	- - (449) (449) - 80 - 80
	- - 80 - (449) - (369) -
	70,103 242 (17,464) 52,881
	- - 13,320 13,320 - (166) - (166)
	- (166) 13,320 13,154 - - - -
	70,103 76 (4,144) 66,035

Notes to the financial statements are included on pages 7 to 25

5

CMI Limited

Consolidated Cash Flow Statement For the Financial Year Ended 30 June 2011

Cash Flows From Operating Activities Receipts from customers Payments to suppliers and employees Interest and other costs of finance paid Income tax paid Insurance recovery relating to fire Net cash provided by/(used in) operating activities Cash Flows From Investing Activities Interest received Payment for property, plant and equipment Proceeds from sale of property, plant and equipment Payment for acquisition of business Proceeds from sale of business Payment for other intangible assets Payment from sale of business Net cash provided by/(used in) investing activities Cash Flows From Financing Activities Payment of finance liabilities Repayment of borrowings Dividends paid Net cash provided by/(used in) financing activities Net Increase/(Decrease) In Cash and Cash Equivalents Cash and Cash Equivalents At The Beginning Of The Financial Year Effects of exchange rate changes on the balance of cash held in foreign currencies Cash and Cash Equivalents At The End Of The Financial Year	Note 5(d) 8 5(a)	2011 $’000 2010 $’000
		106,439 85,082 (97,668) (78,261) (119) (220) (3,438) 40 2,525 4,017
		7,739 10,658
		1,714 1,362 (1,387) (1,450) 130 166 - (647) - 300 (901) (877) - (347)
		(444) (1,493)
		(242) (537) - (1,000) - -
		(242) (1,537)
		7,053 7,628 9,052 1,342 (6) 82
		16,099 9,052

Notes to the financial statements are included on pages 7 to 25

6

CMI Limited

Notes to the Financial Statements For the Financial Year Ended 30 June 2011

Note Contents

• 1 Basis of Preparation

• 2 Profit from Operations

• 3 Subsequent Events

• 4 Commentary

• 5 Notes to the Cash Flow Statement

• 6 Details relating to Dividends (Distributions)

• 7 Earnings Per Share

• 8 Business Combination

• 9 Details of Associates and Joint Venture Entities

• 10 Contingent Liabilities and Contingent Assets

• 11 Operating Segments

• 12 Discontinuing Operations

• 13 Reconciliation of Income Tax Expense

• 14 Other Financial Assets

• 15 Other Significant Information

• 16 Information on Audit or Review

7

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

1. Basis of Preparation

This preliminary final report has been prepared in accordance with ASX Listing Rule 4.3A and the disclosure requirements of ASX Appendix 4E.

This condensed financial report has been prepared in order to comply with ASX listing rules.

This 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.

It is recommended that this report be read in conjunction with the annual report for the year ended 30 June 2010, the interim financial report for the half-year ended 31 December 2010 and considered together with any public announcements made by CMI Limited during the year ended 30 June 2011 in accordance with the continuous disclosure obligations of the ASX listing rules.

The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report.

Prior period comparatives have been adjusted where required to meet current year presentation format.

8

CMI Limited

Notes to the Financial Statements For the Financial Year Ended 30 June 2011

011
2011	2010
$’000	$’000

2. Profit From Operations

Profit from ordinary activities before income tax includes the following items of revenue and expense:

(a) Revenue and Other Income – continuing operations Continuing operations Sales of goods Interest – other persons Insurance recovery relating to fire Other Items (b) Profit before income tax – continuing operations Profit before income tax has been arrived at after crediting/(charging) the following gains and losses from continuing operations: Gain/(loss) on disposal of property, plant and equipment Net foreign exchange gains/(losses) Profit before income tax from continuing operations has been arrived at after charging the following expenses: Cost of sales Net bad and doubtful debts Depreciation and amortisation of: Property, plant and equipment Leased assets Brand names Other intangibles Impairment Expense: Loan receivable Goodwill Capitalised Development Brand name Property, plant & equipment	100,313 77,763 1,953 1,362
	102,266 79,125
	1,983 4,017 750 842
	2,733 4,859
	27 55 (98) 29
	(71) 84
	63,229 49,488 56 17 624 528 37 104 - - 438 235
	1,099 867
	- 8,000 - - - - - - - 126
	- 8,126

9

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

3. Subsequent Events

On 24 July 2011, CMI’s Managing Director Raymond Catelan passed away and ceased to be a director of the company.

On 30 August 2011 Ms Leanne Catelan was appointed a director, Mr Richard Catelan resigned as a director and Mr Colin Ryan was appointed Executive Chairman (formerly Non-executive Chairman).

Trojan Equity Limited has initiated legal proceedings in the Supreme Court of Queensland against CMI Limited, the personal representatives of CMI’s former managing director Raymond Catelan (deceased), CMI’s current directors Colin Ryan and Danny Herceg, former director Richard Catelan and various shareholders of CMI Limited. Trojan has applied to the Court for a range of relief including an order that CMI be wound up, damages and an account of profits. These items cannot be quantified at this time.

There has not been any other matter or circumstance, in the financial statements or notes thereto, that has arisen since the end of the period, that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial years.

4. Commentary

Continuing operations comprise the Electrical Division and TJM Products Division.

The Electrical Division produced a pre-tax profit of $16.0m, an increase of $5.0m on the 2010 year. Revenue increased to $61.8m, 36% (or $16.2m) up on last year. After the slow first quarter, the Mining, Industrial and Construction sectors gained some steady momentum. Whilst the Floods did have an impact, the mining sector quickly recovered. The last quarter has seen a downturn in the Construction sector while the Mining sector remains buoyant.

The TJM Products Division produced a pre-tax profit of $2.8m, an increase of $4.2m on the 2010 year. Revenue (excluding intercompany sales) increased to $38.5m, 20% (or $6.3m) up on last year. The pre-tax profit includes $2.0m relating to insurance recoveries less expenses relating to the fire. The performance of the division indicates a turnaround from previous periods to profitability which can be attributed to the ongoing investment in product designs, brand identity, supply chain and distribution relationships.

10

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

2011	2010
$’000	$’000

5. Notes to the Cash Flow Statement

(a) Reconciliation of Cash

For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the statement of financial position as follows:

Cash and cash equivalents Cheque Accounts Term Deposit Bank overdraft	6,954 5,034 9,145 4,018
	16,099 9,052
	- -
	16,099 9,052

(b) Non-Cash Financing and Investing Activities

During the financial year, the consolidated entity acquired plant and equipment with an aggregate fair value of $nil thousand (2010: $nil thousand) by means of finance leases. These acquisitions are not reflected in the cash flow statement.

(c) Financing Facilities

A multi-option and bill acceptance/discount facility with the National Australia Bank, reviewed annually: Amount used Amount unused Reconciliation of Profit for the Period to Net Cash Flows From Operating Activities Profit/(loss) for the period (Gain)/loss on sale of non-current assets Depreciation and amortisation of non-current assets Interest income received and receivable Finance lease interest Payment from sale of business Unrealised Foreign Exchange (Gain)/Loss Impairment of non-current assets Increase/(decrease) in current tax liability Increase/(decrease) in deferred tax Changes in net assets and liabilities, net of effects from acquisition of businesses: (Increase)/decrease in assets: Current receivables Current inventories Increase/(decrease) in liabilities: Current payables Current borrowings Current provisions Non-current provisions Net cash from operating activities	- - 9,000 9,000
	9,000 9,000
	13,320 (449) (27) (55) 1,099 867 (1,715) (1,362) 39 65 - (616) (13) - - 8,126 1,954 1,757 40 324 (3,120) (2,205) (4,439) 197 485 3,249 - - 72 607 44 (494)
	7,739 10,011

(d) Reconciliation of Profit for the Period to

11

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

6. Details Relating to Dividends (Distributions)

				Amount
				per
				security
			Franked	of
		Amount	Amount	foreign
		per	per	sourced
		security	security	dividend
		¢	¢	¢
Final dividend – Ordinary	2011	-	-	N/A
Final dividend – Class A	2011	-	-	N/A
Interim dividend – Ordinary	2011	-	-	N/A
Interimdividend–ClassA	2011	-	-	N/A
Interim dividend – Ordinary	2010	-	-	N/A
Final dividend – Ordinary	2010	-	-	N/A
Interim dividend – Class A	2010	-	-	N/A
Final dividend–Class A	2010	-	-	N/A
Total dividend (distribution) per security (interim plus final)
		2011		2010
		¢		¢
Ordinary securities (each class separately)		-		-
Class A (each class separately)		-		-
Interim and final dividend (distribution) on all securities
		2011		2010
		$’000		$’000
Ordinary securities (each class separately)			-	-
Class A (each class separately)			-	-
Total			-	-
Any otherdisclosuresin relationto dividends (distributions).
The Directors have proposed to not pay an interim or final dividend in respect of Ordinary shares
andClass A shares for theyear ended30 June	2011.

12

CMI Limited

Notes to the Financial Statements For the Financial Year Ended 30 June 2011

6. Details Relating to Dividends (Distributions) (continued)

Dividend Reinvestment Plans

The dividend or distribution plans shown below are in operation.

Not applicable

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

Not applicable

7. Earnings Per Share – continuing operations

Basic EPS Diluted EPS	2011 ¢ per share 2010 ¢ per share
	39.46 (4.27) 39.46 (4.27)

Basic Earnings per Share

The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

Earnings (a) Weighted average number of ordinary shares (b)	2011 $’000 2010 $’000
	13,320 (1,440)
	2011 No. ‘000 2010 No. ’000
	33,753 33,753

(a) Earnings used in the calculation of basic earnings per share reconciles to net profit/(loss) in the statement of comprehensive income as follows:

statement of comprehensive income as follows:
Net profit/(loss) Class A share dividends provided for or paid Earnings used in the calculation of basic EPS	2010 $’000 2009 $’000
	13,320 (1,440) - -
	13,320 (1,440)

(b) Options are considered to be potential ordinary shares and are therefore excluded from the weighted average number of ordinary shares used in the calculation of basic earnings per share. Where dilutive, potential ordinary shares are included in the calculation of diluted earnings per share (refer below).

13

CMI Limited

Notes to the Financial Statements For the Financial Year Ended 30 June 2011

7. Earnings Per Share – continuing operations (continued)

Diluted Earnings per Share

The earnings and weighted average number of ordinary and potential ordinary shares used in the calculation of diluted earnings per share are as follows:

Earnings (a) Weighted average number of ordinary shares and potential ordinary shares (b), (c)	2011 $’000 2010 $’000
	13,320 (1,440)
	2011 No. ‘000 2010 No. ‘000
	33,753 33,753

• (a) Earnings used in the calculation of diluted earnings per share reconciles to net profit/(loss) in the statement of comprehensive income as follows:

Net profit/(loss) Class A share dividends provided for or paid Earnings used in the calculation of diluted EPS	2011 $’000 2010 $’000
	13,320 (1,440) - -
	13,320 (1,440)

• (b) Weighted average number of ordinary shares and potential ordinary shares used in the calculation of diluted earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows:

Weighted average number of ordinary shares used in the calculation of basic EPS Shares deemed to be issued for no consideration in respect of: Director options Weighted average number of ordinary shares and potential ordinary shares used in the calculation of diluted EPS	2011 No. ‘000 2010 No. ‘000
	33,753 33,753 - -
	33,753 33,753

• (c) Class A shares are excluded on the basis that they are not convertible to ordinary shares. Share options are excluded on the basis that they are not dilutive due to the earnings of the Group being a loss.

14

CMI Limited

Notes to the Financial Statements For the Financial Year Ended 30 June 2011

8. Business Combination

Businesses Acquired

On 1 October 2009, TJM Shenzhen acquired the business and assets of DaHe Automotive Supplies Ltd (“DaHe”). At the date of acquisition, DaHe Automotive Supplies Ltd was involved in the manufacturing, operating and development of auto-related components and parts, supplementary equipment and accessories, gifts, mechanical products and electronic products. The Group has recognised the fair values of the identifiable assets and liabilities.

Consideration Cash and cash equivalents Fair Value of Net Assets Acquired Current assets: Cash and cash equivalents Receivables Inventories Deposits Non-current assets: Intangibles Property, plant and equipment Deferred tax assets Current liabilities: Payables Current tax liabilities Non-current liabilities: Provisions Net assets acquired Brandname on acquisition Goodwill on acquisition Net Cash Outflow on Acquisition Cash and cash equivalents consideration Less cash and cash equivalents balances acquired	2010 $‘000
	647
	647
	39 81 466 10 - 348 - (297) - -
	647 - -
	647
	647 39 608

Control gained over entities

Year	Name of entity (or group of entities)	Date control gained	% Acquired
2011	TJM Off-Road Products Inc.	08/04/2011	100%
2010	TJMShenzhen Ltd	01/10/09	100%

During the year ended 30 June 2011 the group incorporated TJM Off-road Products Inc. with an investment of USD $100 thousand.

15

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

9. Details of Associates and Joint Venture Entities

	Name of Entity	Ownership Interest	Ownership Interest	Contribution to net profit	Contribution to net profit
		2011	2010	2011 $’000	2010 $000
	Associates Joint Venture Entities Aggregate Share of Profits/ (Losses)	% -	% -	-	-
		-	-	-
		$’000 -	$’000 -	-	-

10. Contingent Liabilities and Contingent Assets

Contingent liabilities Guarantees issued to bank in respect of overseas purchases and lease of premises	2011 $’000 2010 $’000
	1,837 1,186

Australian Taxation Office Audit

The group is currently responding to a number of inquiries made by the Australian Taxation Office. Based on the evidence the Directors believe there will be no liability and will strenuously defend any claim.

Contingent assets (a & b)

(a) Option to Purchase

Associated with the sale of the Engineering business and a vendor loan provided by CMI Limited was an option granted to CMI Limited to purchase a portion of the entity that acquired the Engineering business should certain trigger events such as failure to repay the vendor loan, failure to transfer certain leases or failure to settle creditors occur. This option was originally in existence for three years, expiring in April 2011 or less should the vendor loan be repaid. This option has been extended along with the repayment date of the receivable by 6 months. Exercise of the option by CMI Limited would require the surrender of the vendor loan. The directors have assessed the fair value of this option as $nil at 30 June 2011.

16

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

(b) TJM Warehouse Fire

On 16 October 2009 a fire took place at the head office of the TJM business Unit. As a result of this fire the TJM and Corporate business units of CMI Limited incurred interruptions to business and trading activities. The CMI Limited Group carries appropriate and adequate Fire and Business Interruption insurance for these events and disruptions.

A claim for Material Damage, Additional Increased Cost of Working and Loss of Gross Profit incurred between October 2009 and June 2011 has been finalised with CMI’s insurers. There is no receivable as at 30 June 2011. During the 2010 financial year, the insurers made a preliminary payment on account of an amount of $4.0 million (net of deductible). During the 2011 financial year, the insurers made final payments on account totalling $2.5 million.

Commitments

TJM Off-Road Products Inc. (USA) Capital Commitment

At 30 June 2011 CMI Limited have a commitment to contribute A$82,876 (US$89,000) in capital. The commitment relates to contributions to the registered capital of the company in accordance with TJM Off-Road Products Inc. articles of association which stated on incorporation CMI Limited had a commitment to contribute US$100,000. To the date of this report $46,368 (US$51,000) has been contributed.

TJM Shenzhen Capital Commitment

At 30 June 2010 CMI Limited had a commitment to contribute A$51,226 (US$43,660) in capital by 30 September 2011. The commitment related to contributions to the registered capital of the company in accordance with TJM Shenzhen’s articles of association. This amount was contributed during the current year.

17

CMI Limited

Notes to the Financial Statements For the Financial Year Ended 30 June 2011

11. Operating Segments

	CONTINUING OPERATIONS	CONTINUING OPERATIONS
BUSINESS	TJM Products – Domestic TJM Product – China TJM Product – USA Electrical Components		Consolidated
	30/06/11 $’000 30/06/10 $’000 30/06/11 $’000	30/06/10 $’000 30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000	30/06/11 $’000 30/06/10 $’000
REVENUE External sales 38,038 31,716 491 489 5 - 61,830 45,583 Intersegment sales (ii) - - 2,522 1,398 - - - 19 Other revenue - - - - - - - - Total Segment Revenue 38,038 31,716 3,013 1,887 5 - 61,830 45,602 Interest income Inter-segment eliminations Total revenue per the statement of comprehensive income RESULT Segment result 2,724 (1,260) 114 (154) (72) - 15,975 10,941 Reconciliation of segment net profit before tax to net profit/(loss) after tax per the statement of comprehensive income Interest income Employee benefits ASX and share register expense Borrowing costs Impairment receivable Other expenses from ordinary activities Income tax expense Discontinued operations after tax Profit after tax per the statement of comprehensive income	38,038 31,716 491 - - 2,522 - - -	489 5 - 61,830 45,583 1,398 - - - 19 - - - - -	100,364 77,788 2,522 1,417 - -
	38,038 31,716 3,013	1,887 5 - 61,830 45,602	102,886 79,205 1,902 1,337 (2,522) (1,417)
		(154) (72) - 15,975 10,941
			102,266 79,125
			18,741 9,528 1,902 1,337 (977) (952) (87) (111) (136) (233) - (8,000) (636) (597) (5,487) (2,412) - 991
			13,320 (449)

i) Prior period comparatives have been adjusted where required to meet current year presentation format.

ii) Inter-entity sales are recognised based on an internally set transfer price of goods at cost plus a margin. iii) Corporate charges and income tax expense are not allocated to each business segment

18

CMI LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011 (CONTINUED)

11. Operating Segments (continued)

BUSINESS	TJM Products – Domestic TJM Product – China TJM Product – USA Electrical Components	Consolidated
	30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000	30/06/11 $’000 30/06/10 $’000
SEGMENT ASSETS Segment assets 20,471 18,453 2,151 1,550 495 - 37,637 29,998 Reconciliation of segment assets to the statement of financial position Cash and cash equivalents Other financial assets Future income tax benefits Property, Plant & Equipment Other assets Intersegment Eliminations Total assets from continuing operations per the statement of financial position	20,471 18,453 2,151 1,550 495 - 37,637 29,998	60,754 50,001 11,625 6,934 8,500 8,500 325 472 6 7 674 367 373 175
		82,257 66,456

19

CMI LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011 (CONTINUED)

11. Operating Segments (continued)

11. Operating Segments (continued)	11. Operating Segments (continued)	11. Operating Segments (continued)
BUSINESS	TJM Products – Domestic TJM Product – China TJM Product – USA Electrical Components	Consolidated
	30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000	30/06/11 $’000 30/06/10 $’000
SEGMENT LIABILITIES Segment liabilities Reconciliation of segment assets to the statement of financial position Tax Payables Other Liabilities Total liabilities from continuing operations per the statement of financial position	4,504 5,315 714 454 1 - 6,079 4,943	11,298 10,712 4,410 2,501 514 362
		16,222 13,575

BUSINESS	TJM Products – Domestic TJM Product – China TJM Product – USA Electrical Components Reconciliation to statement of cashflows Consolidated	TJM Products – Domestic TJM Product – China TJM Product – USA Electrical Components Reconciliation to statement of cashflows Consolidated
	30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000 30/06/11 $’000	30/06/10 $’000 30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000 30/06/11 $’000 30/06/10 $’000
CASHFLOW INFORMATION Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities
	3,415 1,121 222 (333) (534)	- 9,819 12,293 (5,183) (2,423) 7,739 10,658
	(2,331) (2,160) (78) (417) 521	- (217) (205) 1,661 1,289 (444) (1,493)
	(234) (1,134) 42 705 10	- (66) (107) 6 (1,001) (242) (1,537)

20

CMI LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011 (CONTINUED)

11. Operating Segments (continued)

Products and Services within each Business Segment

For management purposes, the consolidated entity is organised into three major operating divisions – electrical components, 4WD components domestic and 4WD components overseas. These divisions are the basis on which the consolidated entity reports its primary segment information. The above business segments derive revenue from the following products and services:

cContinuing operations:

• TJM – the design, distribution and marketing of components and parts for 4WD, light commercial and heavy transport vehicles.

• Electrical Components – the manufacture of specialist cabling and electrical products for a range of industry sectors.

Discontinuing operations:

• Engineered Components – the manufacture of precision engineered components, particularly for the automotive industry.

• Financial Services – the provision of chattel finance to both consumer and commercial borrowers.

21

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

12. Discontinuing Operations

FY 30/06/2011 – Nil FY 30/06/2010 - Nil

(a) Details of operations disposed and held for sale

30/06/2010 - During the year CMI Limited sold the remaining 49% of the shares in Capitalcorp Finance & Leasing Pty Ltd. At 30 June 2009 CMI Limited was a party to a deed of cross-guarantee with this subsidiary pursuant to ASIC Class Order 98/1418. This cross-guarantee expired 19 August 2009 and the share sale was settled on 20 August 2009.

(b) Financial performance of operations disposed and held for sale

The results of the discontinued operations for the year until disposal are presented below:

		Consolidated 2011 2010 Engineering $’000 Capital Corp $’000 Total $’000 Engineering $’000 Capital Corp $’000 Total $’000
Revenue		- - - 13 410 423 - - (9) - (9)
Expenses
Gross profit/(loss)		- - - 4 410 414 - - - 206 - 206 - - - - - - - - -
Recoverable expenses
Gain on disposal
Finance costs
Impairment
Profit/(Loss) before tax from		- - - 210 410 620
discontinued operations
Income Tax		- - 371 - 371
Profit/(Loss) from		- - - 581 410 991
discontinued operations

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CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

13. Reconciliation of Income Tax Expense

		Continuing	Discontinued Operations
2011		Operations
	Consolidated	$’000	Capitalcorp Engineering
	$’000		$’000 $’000
Profit/(Loss) Before Tax	18,807 18,807 5,642 5,642 (24) (24) - - - - - - - - (131) (131)		- - - - - - - - - - - - - - - -
At 30%
Prior year under/overs
Prior year amendments
Foreign tax rate adjustment
Non assessable gain on sale
Impairment
Other
Tax Expense/(Benefit)	5,487 5,487		- -
		Continuing	Discontinued Operations
2010		Operations
	Consolidated	$’000	Capitalcorp Engineering
	$’000		$’000 $’000
Profit/(Loss) Before Tax	1,592 972 478 292 (452) (452) (371) - (22) (22) (90) - 2,400 2,400 98 194		410 210 123 63 - - - (371) - - (90) - - - (33) (63)
At 30%
Prior year under/overs
Prior year amendments
Foreign tax rate adjustment
Non assessable gain on sale
Impairment
Other
Tax Expense/(Benefit)	2,041 2,412		- (371)

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23

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

14. Other Financial Assets

Other Financial Assets
Other Receivables Loan receivable Provision for Impairment	2011 $’000 2010 $’000 17,000 16,500 (8,500) (8,000)
	8,500 8,500

Associated with the sale of the engineering business was a loan provided by CMI Limited to the purchaser to purchase the business with a $17 million face value. The loan instrument had embedded early repayment discount features that allowed for discounts of up to $3 million. This discount decreased in proportion to the amount of early repayments until the expiry of the three year term of the loan. The $17 million loan had been recorded by CMI at its fair value of $14 million at 30 June 2008 and classed as a current financial asset as it was expected to be repaid in the following 12 month period. The loan bears interest on normal terms. The loan is secured by a second ranking fixed and floating charge over CMI Industrial Pty Ltd behind the National Australia Bank and a personal guarantee from M.J. Hofmeister of $2.5 million. On recognition the directors assessed the fair value of this loan to be $14 million and not its face value of $17 million. Any premium received above $14 million was to be recorded as interest income.

As at 30 June 2009 two discount repayment periods had expired and the directors expected the third, fourth and fifth discount periods to expire in October 2009, April and October 2010. The loan was carried at $16.5 million at 30 June 2009.

On a regular basis the Board of CMI has assessed the recoverable value of the loan by assessing if there is any objective evidence of impairment as a result of one or more events that have occurred. On 24 June 2010 the Board determined that objective evidence of impairment in the loan balance existed (based on information provided by the borrower and other external sources) and again re-assessed the estimated future cash flows from this asset. As a result of this, the loan’s carrying value exceeded its recoverable value by $8 million and an impairment expense and provision for this amount was recorded.

The final discount repayment period expired on 15 April 2011. The carrying value increased to $17 million and the provision for impairment increased by $0.5 million.

The loan was due to be repaid on 16 April 2011. Following an approach by CMI Industrial Pty Limited it was agreed to extend the repayment date by 6 months. The loan is extended on the same terms and conditions.

In forming the accounts at 30 June 2011 and subsequent to this date the Board’s assessment of the loan’s recoverable value has not changed with respect to this loan. The loan is classed as a non-current asset as the Board does not expect the loan to be repaid in the following 12 month period.

24

CMI Limited

Notes to the Financial Statements

For the Financial Year Ended 30 June 2011

15. Other Significant Information

Not Applicable

16. Information on Audit or Review

This preliminary final report is based on accounts to which one of the following applies.

 The accounts have been audited.  The accounts have been subject to review.

 The accounts are in the process of being  The accounts have not yet been audited or subject to review. audited or reviewed.

Description of likely dispute or qualification if the accounts have not yet been audited or subject to review or are in the process of being audited or subjected to review.

Not Applicable

Description of dispute or qualification if the accounts have been audited or subjected to review.

Not Applicable

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