L1 GROUP LIMITED — Annual Report 2007

May 20, 2007

Platinum Asset Pty Limited
ABN 20002984798

Financial Report for the Year Ended 30 June 2006

Contents

Directors' Report	$\mathbf{2}$
Income Statement	4
Salance Sheet	6
Statement Of Changes in Equity	6
Cash Flow Statement	7
Notes To The Financial Statements	a
Directors' Declaration	14
Independent Audit Report To The Members	$15 -$

$\hat{\mathcal{A}}$

Platinum Asset Pty Limited A B.N. 29 062 964 798

$\sim$ $^{-1}$ $^{-1}$

Directors' Report

The Directors present their report on the consolidated entity consisting of Platinum Asset Fly Limited and the entities is controlled at the and of, or during the year eaded 30 June 2008.

Directors

$\ddot{x}$

The following paraces were Directors of Platinum Asset Pty Limited (the Company) sturing the whole of the financial year and up to the end of this report.

K Nekkon A Clifford

M Fraissead

Principal Activity

The principal activity of the consolidated antity in to provide investment maragement services and products.

Trading Results

"The consolidated net profil of Platinum Asset Pty Limited for the year was \$187 586,121 (2005: \$121,033,241) after income NIX expense of \$80,390.945 (2005: 551,619.836).

Dividends

e
Plathum Asset Pty Limited paid a fully franked interim dividend of SBS 4499098072 par sharn on 19 August 2005, No fatel dividend has been proposed

Review of Operations

Review of Opprainting
The consolidated operating profit before tex was \$287,068,068 (2005: \$173,112,277) and \$187,566,121 (2005: \$121,403,241) after tax.
Consolidated income lax expense for the year was \$80,398,048 (2005:

Directors' Indemnity Insurance

Environmental continuing community. Platinum Asset Management Limited

Changes in the state of affairs

There were no significant changes in the State of Affairs of the consolidated entity that occurred during the financial yaar not otherwise disclosed in this report of finantial statements.

Events subsequent to the end of the financial year

When concern growns to the entire manner are the balance date which would impact the financial position of the consolidated antily as at 30 June 2006 and for the results for the year ended on that date.

Likely Oevelopments and expected results of operations

There will be no change in the principal activity of the consolidated entity during the next financial year.

Environmental Regulation

covervencements and produce to any particular or significant environments regulations under Commonwealth, State or Territory Law.
The consolidated entity is not subject to any particular or significant environments regulat

Auditors Independence Declaration

Attunors malependunae perserancii.
A copy of the auditoral independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 3.

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

ENwk-

Sydney 18 August 2006

M Praistead Director

Platinum Asset Pty Limited A.B.N. 29 082 954 798

Auditors' Independence Declaration

.
As lead auditor for the audit of Pietinom Asset Ply Limited for the year ended 30 June 2008, I dedane that to the best of my knowledge and belief, there have been

$\partial \rangle$ no consaversions of the audior independence requirements of the Corporations Act 2001 in relation es de la lista parte de la construcción de la conservación de la conservación de la conservación de la conservación de la conservación de la conservación de la conservación de la conservación de la conservación de la conse

$\ddot{\phantom{a}}$

This declaration is in respect of Paterlan Asset Pty Limited and the entities it controlled during the pertext

Katon D Prottero Partner
PricewaternouseOcopers

$\bar{\beta}$

$\mathbb{G}_{\mathfrak{A}}[\cdot]$

Sydney
18 August 2006

$\mathbf{v} = \left{v_{1}, \ldots, v_{n}\right}$

Liability is limited by a Solume approved unifer Professional Standards Legislation.

Platinum Asset Pty Limited
ABN 29.002.964786

Income Statement

For the Year enced 30 June 2006		Consciidated			Parent entity
		30 June 2006	30 June 2005	30 June 2006	30 June 2006
	Norss	\$	\$	\$	ŝ
Revenue
Operating revisions		289,336,783	194,472,221	212.664.746
inverse income		7,877,383	4,334,902	22,665	126,913,370
Elisabend income		19,071	10,484		68.535
Investmant income		2,660,895	247,045		5,147 (102.118)
Total revenue		299,893,052	199,084,662
				212,717,411	126,884,934
Expenses
Operating expenses		22.112.025	21.945,423
Restairexpense		1.043.587	287,394
Depredatem		697,392	603,975
Professional
$-$ Audit		293.811	263,775	6.865
$-7ax$		301,578	452,358	(6.650)	18,578
Gustooy fees		6,966,751	1,587,880		13,710
Compliance costs		462,220	520,222	$\tilde{\mathbf{r}}$ 277
interest axpanse			258,279		212
Transaction costs		3,953		u.	24.409
Sundry expenses		68,669	33,070	317	$\ddot{\phantom{0}}$ 10,295
Total expenses		31.929.936
			25,952,375	SUS	65,204
Profit/(Loss) before income fax expense		267,963,066	173,112,277	212,716,682	126,819,730
income lax experise
	2	(80, 356, 945)	(51, 619, 036)	(30, 224)	(38, 021, 234)
Profit/(Loss) after income tax expense		187,586,121	121,493,241	212,686,378	88,798,495

.
The above income Statement should be read in conjunction with the accompanying notes

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$\sim 10^7$

Piatinum Asset Pty Limited
ABN 29082954796

Raisnes Shoot

palance pueet
As at 30 June 2006		Consolidated		Parent entity
		30 June 2006	30 June 2005	30 June 2006	30 June 2006
Current assets	Notes	\$	\$	\$	£
Cash on depasif
Trade debtors	9(2)	256,237,620 21,289,241	133,782,370	18,138	Y.
Related party adduunt		12,737	14,773,877
interest Receivable		70,892	2,660 33,070	76,968,039 84	101,943,642
Dividend Receivable		×.		185,000,000
Prepayments		632.540	512,270
income lax receivable			282,403
Defected tax assets		587.254	477,348	1,650	22,290
Total current assets		278,810,283	149,873,888	257,007,971	101,965.939
Non current assets
Financial assets held at fair value strough profit or loss
Investment in montrolled entities		3,584,598	1,193,625
Fixed assets	з	1,646,786	1,812,582	14,105,231	14,105,231
Total non corrent assets		5,231,384	2,978,207	14, 105, 231	14, 105, 231
Total assets		284,041,677	152,850,095	271,113,202	118,071,170
Current liabilities
Payables	4	3,867,161	3,144,375	5,500	8.448
income lax payable		61,035,842	14,159,654	61,056,595	14,139,054
Deferred tax flabilities		116.549	0.021	25
Provisions	Ş.	1,364,613	938,332
Total current liabilities		66,385,165	16,251,682	61.062.120	14, 167, 502
Net assets n a gost		217,656,512	134,598,413	210.051.082	101,903,668
والمرتبي والمحا
Sharaholders' equity Contributed equity
Retained profits	7 8	30.059.450	13,105,172	30,059,450	13,105,172
		187,597,002	121.468.241	179,991,632	88,793,496
Total shareholders' equity		217,856,512	134,598,413	210,051.062	101,903,668

The above Balance Sheet should be read to conjunction with the accompanying notes

Piztinum Asset Pty Limited
ABM 29.962.964.796

Statement of Changes in Equity
For the Year ended 30 Jurie 2006

	Conscidated		Parent entity
	30 June 2006	30 June 2005	30 June 2006	30 June 2006
Total equity at the beginning of the financial year	134,593,413	81,990.484	101.003.668	81,990,484
Adjustment on adoption of AA\$6, 132 and AA\$8, 139 het of tax to retained profits
Profit for the year	30,942 187,500.121	121.493.241
Total recognised income and expense for the financial year	187,597,063	121.493.244	212.886,378 212,685,378	88,798,498 88.798.496
Transactions with equity holders in their capacity as equity holders: Contributions of equity, net of transactions mosts
Dividends paid	16,954,278	2.449,595	16,954,278	2,449.595
	(121, 493, 242) (104,538,964)	(81,334,907) (76, 385, 312)	(121,498,242) (104,538,964)	(81,334,907) (78,886,312)
Total equity at the end of the financial year	217,556,512	134,598,413
			210,051,082	101,903,568

Page 6

.
The Statement of Changes in Equity should be read in conjunction with the sunargenying notes.

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Platinum Asset Pty Limited
ABN 29062954796

Cash Flow Statement

$\mathbf{z} = \mathbf{z} \times \mathbf{z}$ , $\mathbf{z} = \mathbf{z}$

For the Year ended 30 June 2006		Consolidated			Parent entity
	Notes	30 June 2006 Ń.	30 June 2005 з	30 June 2006 s	30 June 2005 \$
Cash flow from operating activities
income received from investments			115,921,259	32,694,746
Interest received		7.035.199	4,304,233	22,560	242.634.629 70,015
Dividends received		75,971	10,484		5.147
Income from operating activities		262.840.419	179,696,344
Experises paid for coerating activities.		(30, 192, 745)	(21,532,746)	(3,769)	(56, 145)
interest expense Incorte taxes paid			(258.977)		(24,409)
		(33.535,700)	(46, 444, 519)	(28,489,272)	(32,116,999)
Net cash inflow from operating activities	95	226.163.144	231,701.084	4.224,295	210,712,238
Cash flow from investing activities
Cost of purchases of investments		(11, 629.209)	(11.454.846)
Proceeds from sale of investments		13,087,103	12,228,030		(19,688.531)
Purchase of plant and equipment		(946.029)	(2,428,485)		7.215,519
Cash flow from investing activities		711,865	(1,655,403)	$\overline{\phantom{a}}$	(12,473,012)
Cash flow from financing activities
Dividends paid		(121,483,242)	(61, 334, 937)	(121, 493, 242)	(81,334,907)
Proceetts from issue of shares		10,954,278	2,449.595	16,954,278	2,449,595
Payments (to)/from related party			(17,605,356)	100,332,800	(110.635,403)
Repayment of Schordmated date			(5,000,000)
Cash flow from financing activities		(104.538,964)	(101,580,668)	(4,266,184)	(198, 520, 715)
Net increase/(decrease) in cash and cash equivalents		122,356.045	128,465,013	18,131	(281,489)
Cash and cash equivalents held at the beginning of the financial year		133,792,379	5,332.501	7	281,493
Effects of exchange rate changes on cash and cash equivalents		109,205	(5.344)
Cash and cash equivalents held at the end of the financial year	9(a)	256.237,620	133,792,370	18,138	Ť.
and a series of the series of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of

The above Cash flow Statement should be read to conjunction with the accompanying notes

$\frac{1}{2}$ . The continuous field $\frac{1}{2}$ is a sequence of $\frac{1}{2}$

Platinum Asset Pty Limited A B.N. 29 062 954 796

Notes to the Financial Statements As at 30 June 2036

$\bar{\Delta}$

1. Summary of Significant Accounting Policies

The constrainted entity is not a reporting entity because, in the Orrentons' opinion if is onlikely that users exist who are unable to command the preparation of reports talkned so as to safety, specifically, all of their information needs. It is the opinion of the directors that the accounting policies adopted are appropriate to meet the needs of the mampars,

This is a special purpose financial report that has been prepared for the ente purpose of complying with fire Corporations Act 2001(Cth) requirements to prepare and distribute a fromosi report to the members and must not be used for any other purpose.

(a) Basis of preparation

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all periods presented, unless otherwise stated.

These consolidated financial statements have been prepared divier the historical cost corrention

The financial report has been prepared in accordance with AASB 101; Presentation of Financial Statements , AASB 107:
Cash Flow Statements , AASB 108: Accounting Pulicies, Changes in Accounting Estimates and Errors. AASB 10 оно перев того, настроявится все принедат от эпотомог, точка переводит у эмильное адат за вы вовок горового провода
Bnancial reports under the Comporations Act 2001, and other applicable According Standards and Urgant Iss Views with the exception of the disclosure requirements of the following: AASB 124: Reisted Party Disclosures

AASB 132; Filmidal Instruments: Fresentation and Disclosure

Compliance with IFRS

Compaentes with minus.
Australian Accounting Standards include Australian expiridients to International Fraencial Reporting Standards (AlFRS).
Compliance with AlFRS ensures that the consolidated financial statements, and r with International Reporting Standards (IFRS).

Application of AASB 1: First-lime Adoption of Australian Equivalents to International Financial Reporting Standards (AIFRS)
These financial statements are the first annual Platinum Asset Pty Limited financial statements to has been appled in preparing these financial statements.

The fixancial statements of the Company until 3d June 2005 had been prepared in accordance with the previous Australian Generally Accepted Accounting Principles (AGAAP). AGAAP differs in certain respects from AIFRS. When precenting the Company's 30 June 2006 financial statements, management has emented certain accounting and valuation methods one entripolity of the community international community that manufactured the most processes and consequent most the comparative figures in respect to 2005 were researed to reflect these adjustments. The Company has taken the exemption available tridler AASB 1 to only apply AASB 132. Financial Instruments: Disclosure and Presentation and AASB 139: Financial Instruments: Recognition and Missurement from 1 July 2005,

The preparation of the financial statements in conformity with AIFRS requires the use of certain ortical accounting estimates and judgements, which are included below.

(b) income tax

pay moonte cas.
Linder AASB 112, Income Taxes, deferred tax balances will be defermined using the "Balance Sheet method" which calculates Craces Ancies in 2, protings revolg, universe aux carantes was the central and sales and collemns crimes meand
Temporary differences based on the carrying amounts of an entity's assets and liabilities in the Emance Sheet a recognised directly in equity.

(c) Valuation of financial assets

From 1 July 2004 to 30 June 2005

The Company has taken the exemption available under AASB 1 to only apply AASB 132. Financial Instruments: Displosure and Presentation the Somewits new semal and oncertainty experience with a community of the 1 state of the 1990 EDDS. The Company had applied AlfrES with the available exemptions to the comparative information on financial assets within the scope of AASB 132 and AASB 139.

Investments were previously valued at historical cost unless if fast base determined that there had been a permanent diminuition in the value of an investment in which case, the carrying amount was written down to its recoverable value. Transaction costs were included in the gain or lose on sale of trading securities.

Adjustments on transition date: 1 July 2005

museum and an interval on them. I was also
The nature of the main adjustments to make this information comply with AASS 132 and AASS 139 is that fataricial assets will be measured at fair value. Fair value is exclusive of transaction costs. Changes in fair value are faken to the income Statement. At the date of transition (1 July 2006) changes to carrying amounts were taken to retained profits.

Platinum Asset Pty Limited A.B.N. 29 062 954 796

Notes to the Financial Statements (continued) As at 30 June 2009

(c) Valuation of financial assets (continued)

From 1 July 2005

$\sim$ 10 $\mu$

÷.

victor view, 2007.
Under AASB 139, investments will be cassified in the Balance Sheet as "Snancial assets held at fair value through profil or loss" These financial assets are milely recognized at fair voice, typically tepresented by cast expeditio transaction reass which are expensed as knorred. Financial assets measured at fair vakie and exclude bansacion costs. Financial assets values are based on quoted "bid" pross on kvin sexurities and quoted "ask" prices on securities sold stront. Gains and insees arising from changes in the feir value of the financial assets are included in the income Statement in the period in which they arise.

Controlled entities and associates are accounted for in the consolidated financial statements as set out in 1(b),

(d) Transaction costs

.
Intial measurement (COSI) on acquisition of trading securities shall not include directly stributable transaction mosts stuch as fees and contrissions paid to agents. Incremental transaction costs should be experient as incurred in the income Statement.

(e) Foreign Currency Translation

The functional and presentation currency of the Company as determined in accordance with AASB 121. The Effects of Changes in Foreign Exchange Rates will be the Australian studer.

Transacticas denominated in foreign currencies are translated into Australian currency at the rates of exchange prevalling on the date of the transaction. The consolidated entity does not undertake spaculative dealings in foreign currency. Foreign corrency assets and liabilities existing at belance date are transisted at balance date. Resulting exchange differences are bought to account in determining profit and loss for the year.

(f) Revenue Recognition

Interest Income From 1 July 2004 to 30 June 2005 interest indens is recognised on an accruats basis. From 1 July 2005

Interest income is recognised using the effective interest method, which allocates income over the relevant period.

Dividend income

Dividend income is recognised on the ex-dividend date applicable to each investment.

Management and Performance free

Management and performance fees are recognised as they are earned and all expenses are brought to account on an accruais basis.

(g) Cash and cash equivalents

ran are the more when the Castil Plow Stillement, cash includes deposits at call and cash at hard which are used in the daily management of the consolidated entity's cash requirement.

(b) Principles of consolidation

...
The consolidated financial statements incorporate the assets and liabilities of all entities controlled by Purlinum Asset Pty Limited ("company" or "parent entity") as at 30 June 2008 and their results of all portrolled entities for the year then anded. Pisticum Asset Pty Limited and its controlled entities together are referred to in its financial report as the consolidated antity. The effects of all transactions between entities in the consolidated entity are eliminated in full.

Where control of an enlity is obtained during the financial year, its results are included in the consolidated statement
of financial parlomation from the date on which control commencies. Where control of an entity caases financial year, its results are included for that part of the year during which control existed.

(i) Receivables
All receivables are recognised as and when they are due. the second of the second construction of the second of the second of the second second second second second second second second second second second second second second second second second second second second second se

Proceeds on sale of Brancial assets are usually received between two and five days after trade date. interest is usually received within three days of becoming receivable and dividensis are usually received. within approximately 30 days of the ex-divident date. Trade debias are usually received between seven to 30 days after becoming receivable.

Platinum Asset Pty Limited

A.B.N. 29 062 954 796

$\bar{\bar{z}}$

Notes to the Financial Statements (continued) As at 30 June 2006

(I) Deoreciation

÷.

Fixed assets are stated at historical cost less depreciation.

.
Phec assets are depreciated over their esemated useful lives using the straight fine medical. From June 2006, the depreciation method used has dranged to the diminishing belance method.

The expected usaful lives are as hildes: Computer Equipment 4 years Suffware 2.5 vears Communications Equipment $4 - 20$ years Office Fringe 5 - 13 1/3 years Office Foreitiste & Equipment -5-13 1/3 years

Gains and losses on disposals are included in the income Statement.

(h) Payables

.
All payables and trade creditors are recognised as and when they are incurred.

(1) Employee entitiament<

.
Liabilities for employees' antiferrents to salaries and annual leave are accrued in numinal amounts calculated on the basis of corrent salary rates, Liabilities for long service leave are accrued in respect of an employees at the present values of future amounts. Contributions to employee superannustion prane are charged as an expense as the contrautions are paid or become payable.

(m) Dividends

.
Provision is made for the amount of any dividend declared, determined or publicly recommended by the directors on or before the end of the financial year but not paid at belance date

(n) New accounting standards and UIG interpretations

Certain new accounting standards and UIG interpretations have been published that are not mandetory for 30 June 2006 reporting period. Our assessment of the impact of these new standards and interpretations are set out below:

(i) AASB 7 Financial Instruments Disclusure and AASB 2005-10 Americiments to Australian Accounting Standards (1) AASB 1:32, AASB 2005-10 are applicable to annual response and AASB 2005-10 Americanisms to Australian Accounting Standards
(AASB 1:32, AASB 2005-10 are applicable to annual regering periods beginning on a aASB 1023 &

(8) AASB 2005-4 Amendments to Australian Accounting Stenderds (AASB 139, AASB 132, AASB 1, AASB 1028 & AASB 1038). (ii) Anois 2005-4 Americments in Australian Accounting ofendatos (AKOD 138, AKOD 158, AKOD 158,000 158,000 158
AASB 2005-4 is applicable to annual reporting periods beginning on or after 1 January 2006. The amendment restr

	Conseildated			Parent entity
2. Income Tax	30 June 2006 s	30 June 2006 \$	30 June 2006 S	30 June 2005 s
The aggregate amount of iscome tax attributable to the financial year differs from the prima facie amount payable on the operating profit(finas). The difference is reconciled as follows:
Profit from ordinary activities before income tax expense	267,963,066	173.112.277	212,716,602	126,819,730
Prima facie income tax on operating profit at 30%	80.388,920	51,935,683	63.814.981	38,045,919
Tax effect on temporary differences which: Reduce lax pavable
- Allowable credits - Quarantined foreign losses now claimable		(232,327) (183.864)	19,753	(2,365) (183,864)
increase lax payable
- Cafference batween taxebit irrome and distributable income - non deductible expenses	4,111	159,836 1,708		159.836 1,708
Tax offset for franked dividends
Under/(over) provision of prior pariod Income lax athbutable to operating profit, comprising the current tax provision	3,914 80,396,945		(63, 308, 424) 3.914
		51,619,036	30,224	38,021,234
The biotime lax (benefil/expense attibulable to operating profil/fluss) comprises:
Durrent income tax provision
Deferred tax imbilities Jeferrad lax assets	80,396,309 106,628	52.083,003 9,545	5.645 25	38,041,634
inder/(aver) provision of pror period	(100, 806) 3.913	(474,602)	20,640 $-0.00000000000000000000000000000000000$	(20, 400)

80.396.945

51,619,036

$30,224$

38,021,234

Platinum Asset Pty Limited
ABN 29062554796

$\sim 10^6$ $\mathcal{L}^{\text{max}}_{\text{max}}$

Notes to the Financial Statements (continued)

As at 30 June 2006	Consolidated		Parent entity
3. Fixed Assets	30 June 2006 s	30 June 2005 s	30 June 2006 \$	30 June 2005 \$
Computer equipment (at ocs!) Lass: Accumulated depredistion	520,274 (258,971)	415,594 (137,412)
	251,363	278,482
Porchased software (at cost) Less: Accumulated deprecadori	442,326 (210, 028)	224.243 (192,376)
	223,300	122,067
Capitalised software (at cost) Less: Accurisviated deprecetion	749,446 (535, 574)	686,518 (229, 177)
	213,872	457,341
Communication equipment (at cost) Less: Accurredated depreciation.	134.923 (77,789)	126,178 (41,616)
	57,134	84,582	ä,
Office premises fit out (at cost) Less: Accumulated depreciation	501,450 (97, 118)	555,592 (46,399)
	504,362	509.193
Office formitters and equipment (at cost) Less: Accumulated depreciation	476,825 (90.010)	403,295 (42.388)
	386,815	360,927
	1,848,786	1,812,552	$\mathbf{r}$	$\mathbf{r}$
4. Payables и. Trade creditors (orsecured)
Goods and Services Tax	2,151,840 1.715,321	2,102,650 1,041,525	5,500	6,446
÷. $\sigma_{\rm{max}}$ -26 5. Provisions -92	3,867,161	3,144,375	5,500	8,448
Current Long service leave
Annual isave	576,318 788,295	339,040 599.292
6. Franking Account	1,364,613	938,332	÷	٠
Opening Balance 1 July - converted at 30%	92,785,545	37,560,876	92,766,545	37,559,446
Dividends paid	(52,066,532)	(34, 657, 817)	(52,065,532)	(34,857,817)
Tax paid or payable.	42,401,732	90,082,486	42.401.732	90,082,486
Franking credits arising from consolidation				1,430
Estimated Franking Credits Available	83,118,745	92,785,545	83,118,745	92,785,545
Amount of rerained profits that could be paid as dividends and be franked out of existing credits or dut of franking creatin srising from the payment of income law in the period subsequent to 30 June 2006, after deducting franking credits applicable to any proposed dividends.	83,116,745	121,493,241	83.118.745	88,798,496

$\begin{aligned} \mathcal{L}{\text{max}}(\mathcal{L}{\text{max}}) = \mathcal{L}{\text{max}}(\mathcal{L}{\text{max}}) \end{aligned}$

į.

Flatinum Asset Pty Limited
ABN. 29.002954796

$\mathbf{x} = \left( \begin{smallmatrix} 1 & 0 \ 0 & 1 \end{smallmatrix} \right)$ , $\mathbf{x} = \left( \begin{smallmatrix} 1 & 0 \ 0 & 1 \end{smallmatrix} \right)$

Notes to the Financial Statements (continued)
As at 30 June 2008

7. Contributed Equity		Parent enthy		Parent entity
(a) Share Capital		30 June 2006 Cuantity	30 June 2006 s	30 June 2005 Quantity	30 June 2005 s
Ordinary shares, haly paint Ordinary shares, tero emount paid		1.782,200	30,059.430	1,746,139 3.225	13,105,172
		1,782,200	30,059,450	1,749,365	13.105,172
(b) Movements in share capital
Date	Details
30-Jun-04			Number of shares.	issue ance	\$
	Opening balance		1,743.759		10,655,577
27-Aug-04	Share issue 17,095 - balance paid \$62.10
27-Aug-04	Share issue 3,454 - balance paid \$188.24			82.10	1,061,614
25-Nov-04	Shara issue.			188.24	650,181
25-Nov-04	Share issue - unpaid		2,360	310.00	737,800
			3,226	310.03
			1,749,386		19.305, 172
25-Nov-04	Share issue 3,228 - batance paid \$310,00
02-Dec-05	Share \$8ks 32,835 - belance paid \$485,80				1:000.000
			32,896	485.89	15,954,218
Ordensty shares
	Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of Ptatinum Asset Pty Limited in proportion to the number of and amounts paid on the shares hald.		1,782,200		30,059,430

	Consolidated 30 June 2006 30 June 2005		Parent entity
B. Retained Profits	ъ		30 June 2008 s	30 June 2005
Retained earnings at the beginning of the 9nancial year.	121,493,241	81.334,607	86,798,498	81,334,967
Adjustment on adoption of AASB 132 and AASB 139 net of tax to retained profits
Net profil	30.942 187,566,121	121,493,241	212,686,578	$\sim$ 88,796.496
Olvidends paid or payable	(121,493,242)	(81,334,907)	(121, 493, 242)	(81.334,907)
Retained earnings at the end of the financial year.	187,597.062	121,493,241	179,891,632	88,798,498

Platinum Asset Pty Limited
AB.N. 29 062 564 796

Notes to the Financial Statements (continued)

As at 30 June 2006

9. Notes to the Cash Flow Statement (a) Reconciliation of Cash

$\omega_{\rm c}^{\pm}$ $\sim$ $\sim$

$\bar{z}$

For the purposes of the Cash Flow Statement, cash itsludes disposits at call and cash at basik which are used
in the daily management of the consciidated entity's cash requirement. Cash at the end of the financial year, as

$\sim$ and engrished the strategy control control consider (1951) as the Constitute Strategy of KNNAS.
	30 June 2008	Consolidated		Parent entity 30 June 2006
	s	30 June 2005 5	S	30 June 2005
Cash at bank	30.592	6.230	y	s
Cash on deposa	250,267,028	133.766,140	18.131
	256,237,620	133,792,370	18,138
(b) Recondilation of Net Cash from
Operating Activities to Operating Profit after Income Tax
Operating profit/(loss) after income tax	187,566,121	121,493,241	212,686,378	88.798.496
Adjustment to operating profit for AIFRS	30,942
Depreciation expense.	697,392	503,975
Loss on discussi of assets.	14,434	11,528
Non-cash employee benefit expense.		66.550
(Gain)/loss on investment income-	(3,390,464)	(252, 189)		102,118
Movement in monetary terms		(1, 185)
(increase)/decrease in cash due to exchange rate movements	(109, 205)	5.144
Decrease/(increase) in distribution recaivable		115,921,250		115,921,259
Decrease/(increase) in dividend receivable			1186,000,0061
Decrease/(increase) in trade debters	(5,495,564)	(14.773.877)
Decrease/(increase) in interest receivable	(37, 822)	(30, 660)	(84)	1,480
Decrease/(increase) in prepayments	(120, 279)	(912,270)
Decrease/(increase) in related party account	(10.187)
(Decrease)/increase in trade eraditors	48,990	2.070,352	(2,948)	(15,350)
(Decrease)/increase in Goods and Services Tax payable	673,796	1.041.526
(Decrease)/increase in provisions	428,281	871.782
Decrease/(Increase) in income tex receivable	282,403	(262, 160)
(Decrease)/increase in income tax payable	46.595,384	5,924,635	(28.473.716)	5,824,635
Decrease/(increase) in deferred tax assets.	(109, 906)	(474,603)	20,340	(20,400)
(Decrease)/trcrease in deferred tax liabilities	106,626	9,645	25
	226, 163, 144	231,701,084	4,224,295	218,712,236

RICEWATERHOUSE COPERS ®

Independent audit report to the members of Platinum Asset Pty Limited

Audit opinion

In our opinion, the financial report of Platinum Asset Pty Limited:

• gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of Platinum Asset Pty Limited and the Platinum Asset Pty Limited Group (defined below) as at 30 June 2006 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements, and
• is presented in accordance with Accounting Standards and other mandatory financial reporting requirements in Australia to the extent described in Note 1 to the financial statements, the Corporations Act 2001 and the Corporations Regulations 2001.

This opinion must be read in conjunction with the rest of our audit report.

Scope

The financial report and directors' responsibility

The financial report, being a special purpose financial report, comprises the balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors' declaration for both Platinum Asset Pty Limited (the company) and Platinum Asset Pty Limited Group (the consolidated entity), for the year ended 30 June 2006. The consolidated entity comprises both the company and the entities it controlled during that year. It has been prepared for distribution to members for the purpose of fulfilling the directors' financial reporting requirements under the Corporations Act 2001.

The directors of the company are responsible for the preparation and true and fair presentation of the financial report 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.

The directors have determined that the accounting policies used and described in Note 1 to the financial statements, including the basis of accounting, which forms part of the financial report, are appropriate to meet the requirements of the Corporations Act 2001. The members have agreed that these policies are appropriate to meet their needs.

Audit approach

We conducted an independent audit of the financial report in order to express an opinion to the members of the company on its preparation and presentation in accordance with the accounting policies described in Note 1. We disclaim any assumption of responsibility for any reliance on this audit report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which they were prepared.

Our audit was conducted in accordance with Australian Auditing Standards. The nature of an audit

PricewaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au-Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

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is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot quarantee that all material misstatements have been detected. For further explanation of an audit, visit our website http://www.pwc.com/au/financialstatementaudit.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and the accounting policies described in Note 1 to the financial statements, a view which is consistent with our understanding of the company's and the consolidated entity's financial position, and its performance as represented by the results of its operations, changes in equity and cash flows. These policies do not require the application of all Accounting Standards and other mandatory financial reporting requirements in Australia.

We formed our audit opinion on the basis of these procedures, which included:

• examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
• assessing the reasonableness of significant accounting estimates made by the directors.

Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

Frances externe Cooper

Partner

Sydney 18 August 2006 $\mathcal{L} = {1, \ldots, n}$

$\mathcal{L}_{\rm{max}}$

Platinum Asset Pty Limited A.B.N. 29 062 954 798

Directors' Declaration

As stated in Note 1 to the financial statements, the consolidated antity is not a reporting entity because, in the Directors' opinion, it is unlikely that users exist who are unlike to contraint the preparation of reports trianed so as to activity, compared to the product of the state of the state of the state of the state of the state of the state of the

The consolidated entity has applied Accounting Standard AASB 127: Consolidated and Separate Financial Statements and Other Amendments and other Accounting Standards and mandatory professional reporting requirements, to the extent described in note 1.

The Directors declare that the financial statements and notes suitout on pages 4 to 13:

$\bar{z}$

$(a)$ comply with Accounting Standards, as detailed above, and the Contenations Regulations 2001; and Since the and fair view of the company's and considerated anticylisticisms in equivalent and it, and
gives a true and fair view of the company's and considerated anticy's financial position as at 30 June 2006. $\mathfrak{b},$ year ended on that date.

In the Directors' opinion:

(a) $65$

the financial statement and notes are in accordance with the Corporations Act 2001; and there are reasonable grounds to believe that the company will be able to pay its debra as and when they become due and payable.

Delon

K Neilson Director

M Hak Director