FIRST AU LIMITED — Annual Report 2013

Feb 26, 2014

Public Holdings (Australia) Limited A.B.N. 65 000 332 918 And Controlled Entities

Appendix 4E Preliminary Final Report for the year ended 31 December 2013

Public Holdings (Australia) Limited and Controlled Entities A.B.N 65 000 332 918

Appendix 4E (rule 4.3A) For the Year Ended 31 December 2013

1.	Reporting period: twelve months ended 31 December 2013
	Previous corresponding period: twelve months ended 31 December 2012
2.	Results for announcement to the market:
		$'000
2.1	Revenue from ordinary activities up 199% to:	231
2.2	Loss from ordinary activities after tax attributable to members down by 79% from
	$229,900 in 2012 to a loss of:	(48)
2.3	Net loss for the year attributable to members down by 79% from a net loss
	of $229,900 in 2012 to a net loss of:	(48)

• 2.4 It is proposed not to pay dividends for the year ended 31 December 2013 2.5 Not applicable

• 2.6 Please refer to the Financial Statements - 31 December 2013 released today for further explanations of the figures presented at 2.1 - 2.4 above.

• 3 - 6. Attached as part of this preliminary report.

• 7 - 8. Dividends - not applicable 9. Net tangible assets per security:

t tangible assets per security:
	2013 Cents	2012 Cents
Net tangible assets per share:	9.56	9.96

10. Entities over which control has been gained or lost during the period - not applicable.

11. Public Holdings (Australia) Limited does not have an interest in associates or joint ventures.

12. No additional significant information is considered necessary for an investor to make an informed assessment of the entity's financial performance and financial position other than as provided in this report.

13. Public Holdings (Australia) Limited is not a foreign entity.

14. The Company continues to invest in listed securities. Financial market is very volatile during the year. The stock market continued the upward trends in the first quarter but slump in the second quarter of 2013 due to the concern over a tapering of US monetary stimulus. However, the stock market rebounded due to the sign of recovery of US economy in the second half of 2013. The general stock market recorded a positive return of 14.8% (All Ordinary) in 2013. Despite this unstable environment, our investment portfolio is able to perform a slightly better than market return and record an investment gain of $158,057 during the year.

In order to reduce the operating costs further, we had applied deregistration of certain dormant subsidiaries in 2013. The Directors of the Company will continue to monitor the operation costs and to seek other opportunities that will enhance the value of its assets.

15. This report is based on consolidated financial statements that are in the process of being audited.

On behalf of the Board of Directors

==> picture [151 x 23] intentionally omitted <==

David W McBain – Company Secretary

Dated: 25 February 2014

1

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2013

Note Revenue 3 Administration expenses Net foreign currency exchange loss Other expenses Loss before income tax 4 Income tax expense 5 Net loss for the year Items that may be reclassified subsequently to profit or loss Other comprehensive (loss)/income for the year Loss per share Basic loss per share (cents) 20 Diluted loss per share (cents) 20 Realisation of financial assets revaluation reserve Net gain on revaluation of available-for-sale financial assets Total comprehensive loss for the year attributable to owners of the company	31 Dec 31 Dec 2013 2012 $ $ 231,479 77,306 (96,385) (98,090) - (223) (182,594) (207,802) (47,500) (228,809) - (1,091) (47,500) (229,900) (180,330) 25,938 166,785 86,670 (13,545) 112,608 (61,045) (117,292) (0.32) (1.53) (0.32) (1.53) Consolidated Group	31 Dec 31 Dec 2013 2012 $ $ 231,479 77,306 (96,385) (98,090) - (223) (182,594) (207,802) (47,500) (228,809) - (1,091) (47,500) (229,900) (180,330) 25,938 166,785 86,670 (13,545) 112,608 (61,045) (117,292) (0.32) (1.53) (0.32) (1.53) Consolidated Group
	(47,500) -	(228,809) (1,091)
	(47,500)	(229,900)
	(180,330) 166,785	25,938 86,670
	(13,545)	112,608
	(61,045)	(117,292)
	(0.32) (0.32)	(1.53) (1.53)

The accompanying notes form part of these financial statements.

2

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Consolidated Statement of Financial Position As at 31 December 2013

Note ASSETS CURRENT ASSETS Cash and cash equivalents 6 Trade and other receivables 7 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets 8 Plant and equipment 9 TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables 10 Current tax liabilities 11 TOTAL CURRENT LIABILITIES AND TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 12 Reserves Accumulated losses TOTAL EQUITY	31 Dec 31 Dec 2013 2012 $ $ 596,404 455,843 38,411 40,845 634,815 496,688 835,445 1,027,320 100 141 835,545 1,027,461 1,470,360 1,524,149 38,828 30,481 - 1,091 38,828 31,572 1,431,532 1,492,577 1,872,375 1,872,375 307,909 321,454 (748,752) (701,252) 1,431,532 1,492,577 Consolidated Group	31 Dec 31 Dec 2013 2012 $ $ 596,404 455,843 38,411 40,845 634,815 496,688 835,445 1,027,320 100 141 835,545 1,027,461 1,470,360 1,524,149 38,828 30,481 - 1,091 38,828 31,572 1,431,532 1,492,577 1,872,375 1,872,375 307,909 321,454 (748,752) (701,252) 1,431,532 1,492,577 Consolidated Group
	634,815	496,688
	835,445 100	1,027,320 141
	835,545	1,027,461
	1,470,360	1,524,149
	38,828 -	30,481 1,091
	38,828	31,572
	1,431,532	1,492,577
	1,872,375 307,909 (748,752)	1,872,375 321,454 (701,252)
	1,431,532	1,492,577

The accompanying notes form part of these financial statements.

3

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Consolidated Statement of Changes in Equity For the Year Ended 31 December 2013

Consolidated Group Balance at 1 January 2012 Total comprehensive loss for the year Balance at 31 December 2012 Balance at 1 January 2013 Revaluation of available-for-sale financial assets Financial assets revaluation reserve realised Revaluation of available-for-sale financial assets Total comprehensive loss for the year Balance at 31 December 2013 Net loss attributable to the members of parent entity Net loss attributable to the members of parent entity Financial assets revaluation reserve realised	Share Capital Financial Assets Revaluation Reserve Accumulated Losses $ $ $ 1,872,375 208,846 (471,352) - - (229,900) - 25,938 - - 86,670 -	Total $ 1,609,869 (229,900) 25,938 86,670
	- 112,608 (229,900)	(117,292)
	1,872,375 321,454 (701,252)	1,492,577
	1,872,375 321,454 (701,252) - - (47,500) - (180,330) - - 166,785 -	1,492,577 (47,500) (180,330) 166,785
	- (13,545) (47,500)	(61,045)
	1,872,375 307,909 (748,752)	1,431,532

The accompanying notes form part of these financial statements.

4

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Consolidated Statement of Cash Flows For the Year Ended 31 December 2013

Note CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Dividends received Interest received Other income received Tax paid Net cash used in operating activities 17 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial instruments Proceeds from sale of financial instruments Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Advance/payments from/(to) related parties Repayment of borrowings to related parties Net cash provided by/(used in) financing activities Net increase/(decrease) in cash held Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December 6 Effect of exchange rates on cash holdings in foreign currencies	31 Dec 31 Dec 2013 2012 $ $ (270,474) (306,232) 44,284 43,210 13,866 19,552 - 250 (1,091) (1,762) (213,415) (244,982) - (53,010) 349,932 400,137 349,932 347,127 2,317 (40,728) - (70,694) 2,317 (111,422) 138,834 (9,277) 455,843 465,343 1,727 (223) 596,404 455,843 Consolidated Group	31 Dec 31 Dec 2013 2012 $ $ (270,474) (306,232) 44,284 43,210 13,866 19,552 - 250 (1,091) (1,762) (213,415) (244,982) - (53,010) 349,932 400,137 349,932 347,127 2,317 (40,728) - (70,694) 2,317 (111,422) 138,834 (9,277) 455,843 465,343 1,727 (223) 596,404 455,843 Consolidated Group
	(213,415)	(244,982)
	- 349,932	(53,010) 400,137
	349,932	347,127
	2,317 -	(40,728) (70,694)
	2,317	(111,422)
	138,834 455,843 1,727	(9,277) 465,343 (223)
	596,404	455,843

The accompanying notes form part of these financial statements.

5

Public Holdings (Australia) Limited and Controlled Entities A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

This financial report includes the consolidated financial statements and notes of Public Holdings (Australia) Limited and controlled entities ('Consolidated Group').

1. Summary of Significant Accounting Policies

Statement of Compliance and Basis of Preparation

The preliminary financial report is a financial report that has been prepared in accordance with the recognition and measurement aspects of Australian Accounting Standards (AASs) adopted by the Australian Accounting Standards Board (AASB), the Corporations Act 2001 and Appendix 4E of the Australian Securities Exchange listing rules.

It is recommended that this financial report be read in conjunction with the 2012 annual report, the June 2013 half year report and any public announcements made by Public Holdings (Australia) Limited and its controlled entities during the year in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

Except for cash flow information, the consolidated financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected noncurrent assets, financial assets and financial liabilities. The financial report is presented in Australian dollars.

a) Principles of Consolidation

The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Public Holdings (Australia) Limited at the end of the reporting period. A controlled entity is any entity over which Public Holdings (Australia) Limited has the ability and right to govern the financial and operating policies so as to obtain benefits from the entity’s activities.

Where controlled entities have entered or left the Consolidated Group during the year, the financial performance of those entities are included only for the period of the year that they were controlled. A list of controlled entities is contained in Note 13 to the consolidated financial statements.

In preparing the consolidated financial statements, all intragroup balances and transactions between entities in the Consolidated Group have been eliminated in full on consolidation.

Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are reported separately within the equity section of the consolidated statement of financial position and statement of profit or loss and other comprehensive income. The non-controlling interests in the net assets comprise their interests at the date of the original business combination and their share of changes in equity since that date.

b) Income Tax

The income tax expense for the year comprises current income tax expense and deferred tax expense.

Current income tax expense charged to profit or loss is the tax payable on taxable income calculated using applicable statuary tax rate. Current tax liabilities are measured at the amounts expected to be paid to the relevant taxation authority.

6

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

1. Summary of Significant Accounting Policies (Continued)

b) Income Tax (Continued)

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax expense is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss.

Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

c) Trade and Other Receivables

Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.

d) Plant and Equipment

Plant and equipment are measured on the cost basis less accumulated depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised in profit or loss. A formal assessment of recoverable amount is made when impairment indicators are present.

7

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

1. Summary of Significant Accounting Policies (Continued)

d) Plant and Equipment (Continued)

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

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

Depreciation

The depreciable amount of all fixed assets is depreciated on a diminishing value basis over their useful lives to the Consolidated Group commencing from the time the asset is held ready for use.

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

Class of Fixed Asset	Depreciation Rate
Office Equipment	15-50%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately 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 recognised in profit or loss in the period in which they arise.

e) Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Consolidated Group commits itself to either the purchase or sale of the asset.

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified 'at fair value through profit or loss', in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

8

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

1. Summary of Significant Accounting Policies (Continued)

e) Financial Instruments (Continued)

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss.

The Group does not designate any interests in subsidiaries as being subject to the requirements of Accounting Standards specifically applicable to financial instruments.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with any remeasurements other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are classified as non-current assets when they are expected to be sold after 12 months from the end of the reporting period. All other available-for-sale financial assets are classified as current assets.

Financial liabilities

Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised.

9

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

1. Summary of Significant Accounting Policies (Continued)

f) Impairment of Assets

At the end of each reporting period, the Consolidated Group assesses whether there is any indication that an asset may be impaired. The assessment will include the consideration of external and internal sources of information, including dividends received from subsidiaries deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (eg in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the Consolidated Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

g) Foreign Currency Transactions and Balances

Functional and presentation currency

The functional currency of each of the Consolidated Group’s entities is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity’s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Nonmonetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the consolidated statement of profit or loss and other comprehensive income, except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to the extent that the underlying gain or loss is recognised in other comprehensive income; otherwise the exchange difference is recognised in profit or loss.

h) Trade and Other Payables

Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 12 months of recognition of the liability.

i) Employee Benefits

Provision for annual leave and long service leave has not been made as the Consolidated Group has no obligation to pay at the end of the reporting period.

10

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

1. Summary of Significant Accounting Policies (Continued)

j) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the consolidated statement of financial position.

k) Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue.

Interest revenue is recognised using the effective interest method.

Dividend revenue is recognised when the right to receive a dividend has been established.

All revenue is stated net of the amount of goods and services tax (GST).

l) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the consolidated statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

m) Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Consolidated Group.

Key estimates

Impairment - general

The Consolidated Group assesses impairment at each reporting date by evaluation of conditions and events specific to the Consolidated Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations, which incorporate various key assumptions.

11

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

1. Summary of Significant Accounting Policies (Continued)

m) Critical Accounting Estimates and Judgments (Continued)

Key estimates (Continued)

The Consolidated Group is not directly impacted by the carbon pricing mechanism because it does not control facilities that produce emissions greater than the threshold level. However, the Consolidated Group will be indirectly impacted by the mechanism through increases in the prices it pays for energy and materials purchased from suppliers that are impacted by the introduction of the mechanism. The Consolidated Group also anticipates that it will experience an increase in expenditures related to waste disposal under the carbon pricing mechanism, although any future increases in such costs are likely to be less significant than the anticipated increases in energy and material costs.

Management of the Consolidated Group has considered whether the introduction of the carbon pricing mechanism is an impairment indicator and has determined that it is not expected to have a significant impact on the estimated net cash flows of the Consolidated Group’s operations or the recoverability of its assets, principally because the Consolidated Group has the capacity to pass on any increases in production costs through its contracts with customers. Nevertheless, management has adjusted the discount rate it applies when determining the recoverable amount of an asset or cash-generating unit to reflect the uncertainty around price increases, particularly beyond the fixed price phase (2012–2015) of the carbon pricing mechanism.

Key judgments

Impairment of available-for-sale financial assets

The Consolidated Group evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost, and the financial health of and near-term business outlook for the investee, including factors such as industry and sector performance, change in technology and operational and financing cash flow. This evaluation requires significant judgment.

Impairment of trade receivables

The Consolidated Group makes impairment based on an assessment of the recoverability of trade receivables. Impairment is made when there are events or changes in circumstances which indicate that the balances may not be collectible. The identification of doubtful receivables requires the use of judgments and estimates. Where the expectation on the recoverability of trade receivables is different from the original estimate, such difference will impact the carrying value of trade receivables and impairment expenses in the year in which such estimate has been changed.

12

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

		31 Dec	31 Dec
		2013	2012
2	Parent Information (Extracts)	$	$
	Statement of Financial Position
	Assets
	Current assets	634,815	490,251
	Total assets	1,470,462	1,771,529
	Liabilities
	Current liabilities	38,828	30,481
	Total liabilities	38,930	2,153,287
	Equity
	Issued capital	1,872,375	1,872,375
	Financial assets revaluation reserve	307,909	321,454
	Accumulated losses	(748,752)	(2,575,587)
	Equity/(Deficiency of equity)	1,431,532	(381,758)
	Statement of profit or loss and other comprehensive income
	Profit/(Loss) for the year	1,826,835	(190,653)
	Other comprehensive (loss)/income	(13,545)	112,872
	Total comprehensive income/(loss)	1,813,290	(77,781)

Guarantees

Public Holdings (Australia) Limited has not entered into any guarantees, in the current or previous financial year, in relation to the debts of its subsidiaries.

Contingent liabilities

At 31 December 2013, Public Holdings (Australia) Limited has no contingent liabilities (2012: Nil).

Contractual commitments

At 31 December 2013, Public Holdings (Australia) Limited has not entered into any contractual commitments for the acquisition of property, plant and equipment (2012: Nil).

3 Revenue Net profit on disposal of financial instruments Interest received - other persons and corporations Dividends received - other corporations Net foreign currency exchange gain Sundry income Total Revenue attributable to members of the parent entity	31 Dec 31 Dec 2013 2012 $ $ 171,602 15,912 13,866 17,934 44,284 43,210 1,727 - - 250 231,479 77,306 Consolidated Group	31 Dec 31 Dec 2013 2012 $ $ 171,602 15,912 13,866 17,934 44,284 43,210 1,727 - - 250 231,479 77,306 Consolidated Group
	231,479	77,306

13

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

4 Loss before income tax Revenue and expenses Employee benefits expenses 5 Income Tax Expense Prima facie income tax on loss at 30%: Tax effect of: Non-taxable items Foreign currency exchange difference not subject to income tax Rebateable dividends Tax loss not brought to account Income tax attributable to entity The following revenue and expense items are relevant in explaining the financial performance: The prima facie tax on loss is reconciled to the income tax as below: Net profit on disposal of financial instruments	31 Dec 31 Dec 2013 2012 $ $ 171,602 15,912 (20,183) (58,528) (14,250) (68,643) (49,720) (4,066) (585) 58 5,645 5,463 58,910 68,279 - 1,091 Consolidated Group	31 Dec 31 Dec 2013 2012 $ $ 171,602 15,912 (20,183) (58,528) (14,250) (68,643) (49,720) (4,066) (585) 58 5,645 5,463 58,910 68,279 - 1,091 Consolidated Group
	-	1,091

A deferred tax asset has not been recognised in respect of the carry forward of unused tax losses.

The benefit for tax losses will only be obtained if: - the Consolidated Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised;

• the Consolidated Group continues to comply with the conditions for deductibility imposed by tax legislation; and

• no changes in tax legislation adversely affect the company in realising the benefit from the deductions for the losses.

6 Cash and Cash Equivalents

Cash at bank 596,404 455,843

14

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

31 Dec 31 Dec 2013 2012 7 $ $ Trade and sundry debtors - 117 Amounts due from a related party 38,411 40,728 38,411 40,845 8 Financial Assets - Non-Current Available-for-sale financial assets 835,445 1,027,320 Listed investments, at fair value - Shares in listed corporations 835,445 1,027,320 9 Plant and Equipment Office equipment - at cost 15,464 15,464 Accumulated depreciation (15,364) (15,323) Total Plant and Equipment 100 141 Movements in Carrying Amounts: Balance at the beginning of the year 141 215 Depreciation expense (41) (74) Carrying amount at the end of the year 100 141 10 Trade and Other Payables - Current Unsecured liabilities Trade and other creditors and accruals 38,828 30,481 Consolidated Group Available-for-sale financial assets comprise investments in the ordinary share capital of various entities. There are no fixed returns or fixed maturity date attached to these investments. Available-for-sale financial assets comprise: Trade and Other Receivables - Current	31 Dec 31 Dec 2013 2012 7 $ $ Trade and sundry debtors - 117 Amounts due from a related party 38,411 40,728 38,411 40,845 8 Financial Assets - Non-Current Available-for-sale financial assets 835,445 1,027,320 Listed investments, at fair value - Shares in listed corporations 835,445 1,027,320 9 Plant and Equipment Office equipment - at cost 15,464 15,464 Accumulated depreciation (15,364) (15,323) Total Plant and Equipment 100 141 Movements in Carrying Amounts: Balance at the beginning of the year 141 215 Depreciation expense (41) (74) Carrying amount at the end of the year 100 141 10 Trade and Other Payables - Current Unsecured liabilities Trade and other creditors and accruals 38,828 30,481 Consolidated Group Available-for-sale financial assets comprise investments in the ordinary share capital of various entities. There are no fixed returns or fixed maturity date attached to these investments. Available-for-sale financial assets comprise: Trade and Other Receivables - Current	31 Dec 31 Dec 2013 2012 7 $ $ Trade and sundry debtors - 117 Amounts due from a related party 38,411 40,728 38,411 40,845 8 Financial Assets - Non-Current Available-for-sale financial assets 835,445 1,027,320 Listed investments, at fair value - Shares in listed corporations 835,445 1,027,320 9 Plant and Equipment Office equipment - at cost 15,464 15,464 Accumulated depreciation (15,364) (15,323) Total Plant and Equipment 100 141 Movements in Carrying Amounts: Balance at the beginning of the year 141 215 Depreciation expense (41) (74) Carrying amount at the end of the year 100 141 10 Trade and Other Payables - Current Unsecured liabilities Trade and other creditors and accruals 38,828 30,481 Consolidated Group Available-for-sale financial assets comprise investments in the ordinary share capital of various entities. There are no fixed returns or fixed maturity date attached to these investments. Available-for-sale financial assets comprise: Trade and Other Receivables - Current
	100	141
	141 (41)	215 (74)
	100	141
	38,828	30,481

15

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

11 Current Tax Liabilities Provision for income tax 12 Issued Capital 14,979,000 (2012: 14,979,000) fully paid ordinary shares	31 Dec 31 Dec 2013 2012 $ $ - 1,091 1,872,375 1,872,375 Consolidated Group	31 Dec 31 Dec 2013 2012 $ $ - 1,091 1,872,375 1,872,375 Consolidated Group
	1,872,375	1,872,375

There has been no movement in share capital during the year.

(a) Ordinary shares participate in dividends and the proceeds on winding up of the entity in proportion to the number of shares held.

(b) At shareholders' meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

13 Controlled Entities

(a) Controlled entities consolidated

PHA Trading Pty Ltd PHA Investments Pty Ltd	Country of incorporation	31 Dec 31 Dec 2013 2012 Percentage Owned (%)
	Aust Aust	100 100 100 100

The amount of investment and percentage holding in the controlled entities has remained unchanged during the financial year.

The above entities have been deregistered on 20th February 2014.

16

Public Holdings (Australia) Limited and Controlled Entities

A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

14 Dividends

The Directors have recommended no payment of dividends in respect of the year ended 31 December 2013.

Balance of franking account at year end	31 Dec 31 Dec 2013 2012 $ $ 1,123,142 1,221,771 Consolidated Group

15 Related Party Transactions

Parent Entity

Atlas Securities Pty Ltd owns 73.93% of Public Holdings (Australia) Limited. P I Investments Australia Pty. Ltd owns 100% of Atlas Securities Pty Ltd. Transactions between the parties consist of interest-free unsecured loans to and from the parties. The aggregate amount of these transactions were as follows:

Amounts due from Atlas Securities Pty Ltd Ultimate Parent Entity	38,411	40,728

The ultimate parent entity of Public Holdings (Australia) Limited is First Shanghai Investments Limited, a company incorporated in Hong Kong, China. Management fees paid/payable to First Shanghai Investments Limited’s subsidiary, First Shanghai Management Services Limited, amounted to $50,000 in 2013 (2012: $50,000). Amounts owed to First Shanghai Management Services Limited was nil in 2013 (2012:Nil).

16 Remuneration of Auditors

Amounts received or due and receivable by the auditors: 17 Cash Flow Information Net loss for the year Depreciation & amortisation Effect of exchange differences Changes in assets and liabilities: Decrease in trade and other receivables Decrease in current tax liabilities Net cash used in operating activities - Auditing the financial statements Reconciliation of cash flows from operations with net loss for the year Non-cash flows in loss from ordinary activities: Net profit on disposal of financial instruments Increase/(decrease) in trade and other payables	20,000	20,000
	(47,500) 41 (171,602) (1,727) 117 8,347 (1,091)	(229,900) 74 (15,912) 223 3,342 (2,138) (671)
	(213,415)	(244,982)

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Public Holdings (Australia) Limited and Controlled Entities A.B.N 65 000 332 918

Notes to the Financial Statements For the Year Ended 31 December 2013

18 Contingent Liabilities

The Consolidated Group has no material contingent liabilities.

19 Operating Segments

Segment Information

The Consolidated Group operates in one business and geographical segment.

		Consolidated	Group
		31 Dec	31 Dec
**20 **	Loss per Share	2013	2012
	Basic loss per share
	(cents per share)	(0.32)	(1.53)
	Diluted loss per share
	(cents per share)	(0.32)	(1.53)
	Weighted average number of ordinary shares outstanding
	during the year used in calculation of basic EPS	14,979,000	14,979,000

21 Company Details

The registered office of the Company is at:

Level 1 123 Whitehorse Road Balwyn, Victoria, 3103

The principal place of business of the Company is at:

CITIC House Level 1 99 King Street Melbourne, Victoria, 3000

22 Events after balance sheet date

There have been no material matters arising since year end which have not been adequately disclosed in the financial report.

18