LARK DISTILLING CO. LTD — Annual Report 2004

Aug 19, 2004

Montec International Limited ABN: 62 104 600 544

Level 6, 55 York Street Sydney NSW 2000 Australia

montec@montecinternational.com www.montec-international.com

Telephone: +61 2 9299 0011 Facsimile: +61 2 9299 1499

20 August 2004

JUNE 2004 PRELIMINARY FINAL REPORT

Attached is the Montec International Limited ("Montec International" or the "Company") Preliminary Final Report for the year ended 30 June 2004. The 2004 financial results are encouraging as the Company successfully implemented its plan for entering the China market through the 'pilot' city of Qingdao.

Profit and Loss

ASX RELEASE

The net loss was \$2.455 million for the financial year ended 30 June 2004. There has been a steady build in the monthly sales revenues emanating from Qingdao China, albeit over a short period of time. Expenses incurred in establishing the Montec monounsaturated milk 'Meng Tai' brand and product in the Qingdao market are expected to reap benefits with future sales volume lifting through the expansion of the Company.

Balance Sheet

Cash balances stand at approximately \$2.0 million. Raw material inventories that were held to establish the Company's product in the Qingdao market are now being run down and recovered. Future licensing contracts should not require an initial raw materials commitment, other than possibly packaging due to trademark and brand ownership considerations.

Cash Flow

Cash receipts for the Australian and China business commenced in the 3rd and 4th quarters of the financial year, respectively. The Company's investment in patents and acquired rights comprises the major item of investing cash outflow, as foreshadowed in the Company's prospectus.

For further guidance in respect of the Company's cash flow, reference should be made to previous Appendix 4C announcements including the Company's June Appendix 4C, lodged with ASX on 26 July 2004.

Ends For further enquiries: Nick Geddes Company Secretary 02 9252 1933

Malcolm Campbell Managing Director 02 9299 0011

Rules 4.1, 4.3

Appendix 4E

Preliminary Final Report

Introduced 30/6/2002.

Name of entity
Montec International Limited
Half yearly ABN or equivalent company Preliminary reference final $(iick)$ (iick)	Financial year ended ('current period')
62 104 600 544	30 June 2004
For announcement to the market Extracts from this report for announcement to the market (see note 1).			SA'000
Revenues from ordinary activities $(item I. I)$	up/down	% to	579
Profit (loss) from ordinary activities after tax attributable to members (item 1.22)	up/down	% to	(2,455)
Profit (loss) from extraordinary items after tax attributable to members ( item $2.5(d)$ )	gain (loss) of
Net profit (loss) for the period attributable to members (item 1.11)	up/down	% to	(2,455)
Dividends (distributions)	Amount per security		Franked amount per security
Final dividend (Preliminary final report only - item 15.4)	-¢		-¢
Previous corresponding period (Preliminary final report - item 15.5)	-¢		-¢
*Record date for determining entitlements to the dividend, (in the case of a trust, distribution) (see item $15.2$ )	Not applicable
Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market:

$+$ See chapter 19 for defined terms.

		Current period - \$A'000	Previous corresponding period - \$A'000
$\mathbf{L}$	Revenues from ordinary activities (see items 1.23 $-1.25$	579
1.2	Expenses from ordinary activities (see items 1.26 & 1.27)	(3,039)
$\mathsf{L}3$	Borrowing costs	(1)
$\mathsf{L}4$	Share of net profits (losses) of associates and joint venture entities (see item 16.7)
1.5	Profit (loss) from ordinary activities before tax	(2,461)
1.6	Income tax on ordinary activities (see note 4)
1.7	Profit (loss) from ordinary activities after tax	(2,461)
1.8	Profit (loss) from extraordinary items after tax (see item $2.5$ )
1.9	Net profit (loss)	(2,461)
1.10	Net profit (loss) attributable to outside $+$ equity interests	6
1.11	Net profit (loss) for the period attributable to members	(2, 455)
	Non-owner transaction changes in equity
1.12	Increase (decrease) in revaluation reserves
1.13	Net exchange differences recognised in equity	(22)
1.14	Other revenue, expense and initial adjustments
	recognised directly in equity Initial adjustments from UIG
1.15	transitional provisions
1.16	Total transactions and adjustments recognised directly in equity (items 1.12 to 1.15)	(22)
1.17	Total changes in equity not resulting from	(2, 477)
	transactions with owners as owners

Condensed consolidated statement of financial performance

Earnings per security (EPS)	Current period	Previous corresponding Period
Basic EPS 1.18	\$(0.045)
Diluted EPS L 19	\$(0.045)

⁺ See chapter 19 for defined terms.

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current	period $\overline{\phantom{0}}$	Previous
		\$A'000		corresponding period -
				\$A'000
1.20	Profit (loss) from ordinary activities after tax
	(item 1.7)		(2,461)
1.21	Less (plus) outside $+$ equity interests		t,
1.22	Profit (loss) from ordinary activities after		(2,455)
	tax, attributable to members

Revenue and expenses from ordinary activities

(see note 15)

		Current \$A'000	period	Previous corresponding period - \$A'000
1.23	Revenue from sales or services		453
1.24	Interest revenue		126
1.25	Other relevant revenue
1.26	Details of relevant expenses		(3,026)
1.27	Depreciation and amortisation excluding amortisation of intangibles (see item 2.3)		(14)
	Capitalised outlays
1.28	Interest costs capitalised in asset values
1.29	Outlays capitalised in intangibles (unless arising from an $+$ acquisition of a business)

Consolidated retained profits

		Current period - SA'000	Previous corresponding period - \$A'000
1.30	Retained profits (accumulated losses) at the beginning of the financial period
1.31	Net profit (loss) attributable to members ( item LH)	(2,455)
1.32	Net transfers from (to) reserves (details if material)
1.33	Net effect of changes in accounting policies
1.34	Dividends and other equity distributions paid or payable
1.35	Retained profits (accumulated losses) at end of financial period	(2, 455)

⁺ See chapter 19 for defined terms.

Intangible and extraordinary items

		Consolidated - current period
		Before tax \$A'000	Related tax \$A'000	Related outside $+$ equity	Amount (after $\tan$ ) attributable to
		(a)	(b)	interests \$A'000 (c)	members \$A'000 (d)
2.1	Amortisation of goodwill
2.2	Amortisation of other intangibles	338	$\overline{r}$		338
2.3	Total amortisation of intangibles	338			338
2.4	Extraordinary items (details)		$\overline{r}$
2.5	Total extraordinary items

Comparison of half year profits (Preliminary final report only)

• $3.1$ Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the 1st half year (item 1.22 in the half yearly report)
• $3.2$ Consolidated profit (loss) from ordinary activities after tax attributable to members for the 2nd half year

Current year - \$A'000	Previous year - \$A'000
(828)
(1,627)

⁺ See chapter 19 for defined terms.

	Condensed consolidated statement of financial position	At end $\sigma$ f period current \$A'000	Pervious Corresponding Period - \$A'000	As in last half yearly report \$A'000
	Current assets
4.1	Cash	2,090	5
4.2	Receivables	104
4.3	Investments
4.4	Inventories	409
4.5	Tax assets
4.6	Other - Prepayment	280	17
4.7	Total current assets	2,883	22
4.8	Non-current assets Receivables
4.9	Investments (equity accounted)
4.10	Other investments
4.11	Inventories
4.12	Exploration and evaluation expenditure capitalised (see para .71 of AASB 1022)
4.13	Development properties ( + mining entities)
4, 14	Other property, plant and equipment	113	13
4.15	(net) Intangibles (net)	4,524
4.16	Tax assets		1,293
4.17	Other (provide details if material)
4.18	Total non-current assets	4,637	1,306
4.19	Total assets	7,520	1,328
	Current liabilities
4.20	Payables	174	1,318
4.21	Interest bearing liabilities	9
4.22	Tax liabilities
4.23 4.24	Provisions exc. tax liabilities Other (provide details if material)	26
4.25	Total current liabilities	209	1,318
	Non-current liabilities
4.26	Payables
4.27	Interest bearing liabilities	13
4.28	Tax liabilities Provisions exc. tax liabilities
4.29
4.30	Other (provide details if material)
4.31	Total non-current liabilities	13	w

⁺ See chapter 19 for defined terms.

4.32	Total liabilities	222	1,318
4.33	Net assets	7,298	10
	Equity
4.34	Capital/contributed equity	9,774
4.35	Reserves	(22)
4.36	Retained profits (accumulated losses)	(2, 455)
4.37	Equity attributable to members of the	7,297
4.38	parent entity Outside + equity interests in controlled entities		10
4.39	Total equity	7,298	10
4.40	Preference capital included as part of 4.37

Condensed consolidated statement of financial position continued

Notes to the condensed consolidated statement of financial position

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

		Current period \$A'000	Previous corresponding period -
5.1	Opening balance	$\overline{r}$	\$A'000
5.2	Expenditure incurred during current period
5.3	Expenditure written off during current period
5.4	Acquisitions, disposals, revaluation increments, etc.
5.5	Expenditure transferred to Development Properties
5.6	Closing balance as shown in the consolidated balance sheet ( item 4.12 )

Development properties

(To be completed only by entities with mining interests if amounts are material)

		Current period \$A'000	Previous corresponding period - \$A'000
6.1	Opening balance	$\overline{\phantom{a}}$
6.2	Expenditure incurred during current period	$\blacksquare$

⁺ See chapter 19 for defined terms.

l.

• 6.3 Expenditure transferred from exploration and evaluation
• 6.4 Expenditure written off during current period
• 6.5 Acquisitions, disposals, revaluation increments, etc.
• 6.6 Expenditure transferred to mine properties
• $6.7$ Closing balance as shown in the consolidated balance sheet (item 4.13)

m
m
₩
₩

$\overline{a}$

Condensed consolidated statement of cash flows

		Current period \$A'000	Previous corresponding period $-$ \$A'000
	Cash flows related to operating activities
7.1	Receipts from customers	341
7.2	Payments to suppliers and employees	(2, 850)
7.3	Dividends received from associates
7.4	Other dividends received
7.5	Interest and other items of similar nature received	125
7.6	Interest and other costs of finance paid	(1)
7.7	Income taxes paid
7.8	Other (provide details if material)	(21)
		(2,406)
7.9	Net operating cash flows
7.10	Cash flows related to investing activities Payment for purchases of property, plant and equipment	(93)
7.11	Proceeds from sale of property, plant and equipment
7.12	Payment for purchases of equity investments	(132)	5
7.13	Proceeds from sale of equity investments
7.14	Loans to other entities
7.15	Loans repaid by other entities
7.16	Other - Payment for purchase of intellectual property.	(4,077)
7.17	Net investing cash flows	(4, 302)	5
	Cash flows related to financing activities
7.18	Proceeds from issues of $\overrightarrow{ }$ securities (shares, options, etc.)	10,254
7.19	Proceeds from borrowings
7.20	Repayment of borrowings	(5)
7.21	Dividends paid
7.22	Other - IPO costs	(1, 456)

$\overline{a}$

⁺ See chapter 19 for defined terms.

7.23	Net financing cash flows	8,793
7.24 7.25 7.26	Net increase (decrease) in cash held Cash at beginning of period (see Reconciliation of cash) Exchange rate adjustments to item 7.25.	2,085
7.27	Cash at end of period (see Reconciliation of cash)	2,090

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. $\int f \, \alpha n$ amount is quantified, show comparative amount.)

In addition to shares in Montec International Ltd to the value of \$180,000 issued as part of the transfer of certain assets and liabilities from Montec Holdings Ltd to Montec International Ltd, there have been shares to the value of \$352,300 issued in respect of certain rights. The shares issued in respect of the ascribed values attributable to rights were reflected in the total issued share capital presented in the company's prospectus. Shares to the value of \$10,000 have been issued in respect of employment arrangements and are reflected in equity as at 30 June, 2004.

In respect of the payment for acquisition of an interest in Chongqing Montec Co Ltd, and in addition to the cash consideration of \$131,605 there have been shares to the value of \$150,000 issued to vendors' in respect of 15% of Chongqing Montec Co Ltd. These shares issued in respect of the 15% interest in Chongging Montec Co Ltd were reflected in the total issued share capital presented in the company's prospectus.

Reconciliation of cash

	Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current period \$A'000	Previous corresponding period - \$A'000
8.1	Cash on hand and at bank	194
8.2	Deposits at call	1,896
8.3	Bank overdraft
8.4	Other (provide details)
8.5	Total cash at end of period (item 7.27)	2,090	5

Other notes to the condensed financial statements

Ratios	Current period	Previous corresponding Period
Profit before tax / revenue Consolidated profit (loss) from ordinary 9.1 activities before tax ( item $I.5$ ) as a percentage of revenue ( item 1.1 )	(424)%

⁺ See chapter 19 for defined terms.

9.2	Profit after tax $\ell^+$ equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members ( item 1.11 ) as a percentage of equity (similarly attributable) at the end of the period (item	$(34)\%$ .

Earnings per security (EPS)

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

NTA backing (see note 7)	Current period	Previous corresponding period
$\mathsf{H} \mathsf{H}$ Net tangible asset backing per $+$ ordinary security	\$0.051

Discontinuing Operations

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

Discontinuing Operations $12.1$

No Discontinuing Operations.

⁺ See chapter 19 for defined terms.

Control gained over entities having material effect

13.1 Name of entity (or group of entities)

Not Applicable

• 13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was *acquired
• 13.3 Date from which such profit has been calculated
• 13.4 Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

Loss of control of entities having material effect

14.1 Name of entity (or group of entities)

Not Applicable

• 14.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control
• 14.3 Date to which the profit (loss) in item 14.2 has been calculated
• 14.4 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
• 14.5 Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from sale of interest leading to loss of control

d
ļ

Dividends (in the case of a trust, distributions)

$15.1$ Date the dividend (distribution) is payable Not Applicable

15.2 +Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if $\dot{\tau}$ securities are not $\dot{\tau}$ CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if ⁺securities are ⁺CHESS approved)

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

$+$ See chapter 19 for defined terms.

Amount per security

			Amount per security	Franked amount per security at % tax (see note	Amount per security of foreign source dividend
15.4	Final dividend:	Current year	-¢	-C
15.5		Previous year	-é	-¢
15.6	Interim dividend:	Current year	-¢	-¢
15.7		Previous year	-é	-0

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

		Current year	Previous year
15.8	+Ordinary securities	-е
-15.9	Preference + securities	-е

Preliminary final report - final dividend (distribution) on all securities

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

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

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

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

⁺ See chapter 19 for defined terms.

Group's share of associates' and joint venture entities':		Current period \$A'000	Previous corresponding period $-$ \$A'000
16.1	Profit (loss) from ordinary activities before tax	N/A
16.2	Income tax on ordinary activities
16.3	Profit (loss) from ordinary activities after tax.
16.4	Extraordinary items net of tax
16.5	Net profit (loss)
16.6	Adjustments
16.7	Share of net profit (loss) of associates and joint venture entities

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

Material interests in entities which are not controlled entities

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

	Name of entity	Percentage of ownership interest held at end of period or date of disposal		Contribution to net profit (loss) (item 1.9)
17.1	Equity accounted associates and joint venture entities	Current Previous period corresponding period		Previous Current period \$A'000 corresponding period- \$A'000
N/A
17.2	Total
17.3	Other material interests
	N/A
17.4	Total

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current period
(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

	Category of + securities	Total number	Number quoted	Issue price per security (see note $14$ ) (cents)	Amount paid up per security (see note $14$ ) (cents)
18.1	Preference + securities (description)	N/A
18.2	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions
18.3	+ Ordinary securities	54,319,843	30,894,122	\$0.50	\$0.50
18.4	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks	20,000	20,000	\$0.50	\$0.50
18.5	+ Convertible debt securities (description and conversion factor)	N/A
18.6	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted
18.7	Options (description and			Exercise	Expiry date
	conversion factor)			price	(fany)
		4,323,430 5,000,000 2,548,500 609,826 100,000 336,667		\$0.50 \$0.50 \$0.35 \$0.50 \$0.50 \$0.50	30/06/05 30/06/06 30/06/07 30/06/05 01/07/07 01/07/06
18.8	Issued during current period
18.9	Exercised during current period
18.10	Expired during current period
18.11	Debentures (description)	N/A
18.12	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted
18.13	Unsecured notes (description)	N/A
8.14	Changes during current period
	(a) Increases through issues
	(b) Decreases through securities matured, converted

$+$ See chapter 19 for defined terms.

Comments by directors

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

Basis of financial report preparation

$19.1$ Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

Montec International Limited is currently in the development phase of its business. As such expenditures have been incurred with the expectation of future revenues, resulting in losses in the year being reported.

19.2 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

No material subsequent events.

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

No income tax paid, therefore no franking credits available to be paid.

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

No previous annual report.

⁺ See chapter 19 for defined terms.

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

No previous annual report.

19.6 Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last ^* annual report.

No previous annual report.

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Circular Ouay, Sydney Friday, 19^th November 2004

Deacons, Level 8, 1 Alfred Street

Approximate date the "annual report will be available

15^th October 2004

10 am.

Compliance statement

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

Identify other standards used

$\big N/A$ I
------------------	--

• $\overline{2}$ This report, and the "accounts upon which the report is based, use the same accounting policies.
• $\overline{3}$ This report does give a true and fair view of the matters disclosed (see note 2).

$\overline{4}$ This report is based on "accounts to which one of the following applies. (Tick one)

The $\alpha$ accounts have been $\Box$ audited.		The * accounts have been subject to review.
The "accounts are in the process of being audited.	$\Box$	The "accounts have not yet been audited or reviewed.

$\,$ $\,$ $\,$ The entity has a formally constituted audit committee.

⁺ See chapter 19 for defined terms.

Original Signed Sign here: (Company Secretary) Date: 20 August 2004

Print name: NJV Geddes

Notes

• $\mathbf{I}$ . For announcement to the market The percentage changes referred to in this section are the percentage changes calculated by comparing the current period's figures with those for the previous corresponding period. Do not show percentage changes if the change is from profit to loss or loss to profit, but still show whether the change was up or down. If changes in accounting policies or procedures have had a material effect on reported figures, do not show either directional or percentage changes in profits. Explain the reason for the omissions in the note at the end of the announcement section. Entities are encouraged to attach notes or fuller explanations of any significant changes to any of the items in page 1. The area at the end of the announcement section can be used to provide a cross reference to any such attachment.
• $\overline{2}$ . True and fair view If this report does not give a true and fair view of a matter (for example, because compliance with an Accounting Standard is required) the entity must attach a note providing additional information and explanations to give a true and fair view.

$3₁$ Condensed consolidated statement of financial performance

Item 1.1					The definition of "revenue" and an explanation of "ordinary activities" are set
					out in AASB 1004: Revenue, and AASB 1018: Statement of Financial
		Performance.

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

5. Condensed consolidated statement of financial position

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

$+$ See chapter 19 for defined terms.

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

• 1. Condensed consolidated statement of cash flows For definitions of "cash" and other terms used in this report see AASB 1026: Statement of Cash Flows. Entities should follow the form as closely as possible, but variations are permitted if the directors (in the case of a trust, the management company) believe that this presentation is inappropriate. However, the presentation adopted must meet the requirements of $AASB1026$ . ⁺Mining exploration entities may use the form of cash flow statement in Appendix 5B.
• $7.$ Net tangible asset backing Net tangible assets are determined by deducting from total tangible assets all claims on those assets ranking ahead of the $\pm$ ordinary securities (ie, all liabilities, preference shares, outside *equity interests etc). *Mining entities are not required to state a net tangible asset backing per $+$ ordinary security.
• 1. Gain and loss of control over entities The gain or loss must be disclosed if it has a material effect on the "accounts. Details must include the contribution for each gain or loss that increased or decreased the entity's consolidated profit (loss) from ordinary activities and extraordinary items after tax by more than 5% compared to the previous corresponding period.
• 1. Rounding of figures This report anticipates that the information required is given to the nearest \$1,000. If an entity reports exact figures, the \$A'000 headings must be amended. If an entity qualifies under ASIC Class Order 98/0100 dated 10 July 1998, it may report to the nearest million dollars, or to the nearest \$100,000, and the \$A'000 headings must be amended.
• $10.$ Comparative figures Comparative figures are to be presented in accordance with AASB 1018 or AASB 1029 Interim Financial Reporting as appropriate and are the unadjusted figures from the latest annual or half year report as appropriate. However, if an adjustment has been made in accordance with an accounting standard or other reason or if there is a lack of comparability, a note explaining the position should be attached. For the statement of financial performance, AASB 1029 Interim Financial Reporting requires information on a year to date basis in addition to the current interim period. Normally an Appendix 4B to which AASB 1029 Interim Financial Reporting applies would be for the half year and consequently the information in the current period is also the year to date. If an Appendix 4B Half yearly version is produced for an additional interim period (eg because of a change of reporting period), the entity must provide the year to date information and comparatives required by AASB 1029 Interim Financial Reporting. This should be in the form of a multi-column version of the consolidated statement of financial performance as an attachment to the additional Appendix 4B.
• $11.$ Additional information An entity may disclose additional information about any matter, and must do so if the information is material to an understanding of the reports. The information may be an expansion of the material contained in this report, or contained in a note attached to the report. The requirement under the listing rules for an entity to complete this report does not prevent the entity issuing reports more frequently. Additional material lodged with the ⁺ASIC under the Corporations Act must also be given to ASX. For example, a director's report and declaration, if lodged with the ⁺ASIC, must be given to ASX.

⁺ See chapter 19 for defined terms.

• $12.$ Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if one exists) must be complied with.
• $13.$ Corporations Act financial statements This report may be able to be used by an entity required to comply with the Corporations Act as part of its half-year financial statements if prepared in accordance with Australian Accounting Standards.
• $14.$ Issued and quoted securities The issue price and amount paid up is not required in items 18.1 and 18.3 for fully paid securities.
• 15 Details of expenses AASB 1018 requires disclosure of expenses from ordinary activities according to either their nature or function. For foreign entities, there are similar requirements in other accounting standards accepted by ASX. $A\overline{A}SB$ ED 105 clarifies that the disclosures required by AASB 1018 must be either all according to nature or all according to function. Entities must disclose details of expenses using the layout (by nature or function) employed in their *accounts.

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

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

16 Dollars If reporting is not in AS, all references to SA must be changed to the reporting currency. If reporting is not in thousands of dollars, all references to "000" must be changed to the reporting value.

17. Discontinuing operations

Half yearly report

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

Preliminary final report

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

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

18. Format

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

$+$ See chapter 19 for defined terms.