MACRO METALS LIMITED — Interim / Quarterly Report 2003

Mar 13, 2003

Appendix 4B

Half yearly/preliminary final report

Introduced 30/6/2002.

Name of entity
Auto Enterprises Limited
ABN or equivalent company Half vearly Preliminary reference final $(iick)$ (iick)		Half year/financial year ended ('current period')
28 001 894 033		Half year 31 December 2002
For announcement to the market Extracts from this report for announcement to the market (see note 1).				\$A'000
Revenues from ordinary activities (item 1.1)	down	33%	to	6
Profit (loss) from ordinary activities after tax attributable to members (item 1.22)	up		tо	71
Profit (loss) from extraordinary items after tax attributable to members ( item 2.5(d)
Net profit (loss) for the period attributable to members (item I.11)	up		tо	71
Dividends (distributions)		Amount per security		Franked amount per security
Final dividend (Preliminary final report only - item 15.4) Interim dividend (Half yearly report only - item 15.6)		NIL.		¢
Previous corresponding period (Preliminary final report - item 15.5; half yearly report - item 15.7)		NIL.		¢
N.A. + Record date for determining entitlements to the dividend, (in the case of a trust, distribution) (see item $15.2$ )
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:

If this is a half yearly report it is to be read in conjunction with the most recent annual financial report.

⁺ See chapter 19 for defined terms.

Condensed consolidated statement of financial performance

		Current period - \$A'000	Previous corresponding period - \$A'000
1.1	Revenues from ordinary activities (see items 1.23 $-1.25$	6	9
1.2	Expenses from ordinary activities (see items 1.26 & 1.27	(65)	51
1.3	Borrowing costs
1.4	Share of net profits (losses) of associates and joint venture entities (see item 16.7)
1.5	Profit (loss) from ordinary activities before tax	71	(42)
1.6	Income tax on ordinary activities (see note 4)
1.7	Profit (loss) from ordinary activities after tax	71	(42)
1.8	Profit (loss) from extraordinary items after tax (see item $2.5$ )
1.9	Net profit (loss)	71	(42)
1.10	Net profit (loss) attributable to outside $+$ equity interests
1.11	Net profit (loss) for the period attributable to members	71	(42)
	Non-owner transaction changes in equity
1.12	Increase (decrease) in revaluation reserves
1.13	Net exchange differences recognised in equity
1.14	Other revenue, expense and initial adjustments
	recognised directly in equity (attach details) adjustments from UIG transitional Initial
1.15	provisions
1.16	Total transactions and adjustments recognised directly in equity (items 1.12 to 1.15)	m
1.17	Total changes in equity not resulting from
	transactions with owners as owners

Earnings per security (EPS)	Current period	Previous corresponding period
Basic EPS 1.18	0.54c	(0.32c)
Diluted EPS 1.19	0.54c	(0.32c)

⁺ See chapter 19 for defined terms.

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current SA'000	period w	Previous
				corresponding period - SA'000
1.20	Profit (loss) from ordinary activities after tax (item 1.7)
1.21	Less (plus) outside $\pm$ equity interests		$H +$
1.22	Profit (loss) from ordinary activities after			(42)
	tax, attributable to members

Revenue and expenses from ordinary activities

(see note $15$ )

		period Current \$A'000	Previous corresponding period - \$A'000
1.23	Revenue from sales or services
1.24	Interest revenue	6	9
1.25	Other relevant revenue
1.26	Details of relevant expenses
	Accounting and Audit	16	4
	Legal & Professional		$\overline{2}$
	Consulting		15
	Printing & Stationery
	Share Registry, ASX & Chess	19	13
	Travel		3
	Provision for Doubtful Debt	ľ	12
	Sundry
	Individually Significant Item:
	Reversal of provision for loss on term deposit no longer required	(105)
1.27	and amortisation Depreciation excluding amortisation of intangibles (see item 2.3)
	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 -	Previous corresponding
$ $ \$A'000	$\blacktriangleright$ period - $$A'000$

⁺ See chapter 19 for defined terms.

1.30	Retained profits (accumulated losses) at the beginning of the financial period	(4,208)	(4,108)
1.31	Net profit (loss) attributable to members ( item LH)	71	(42)
1.32	Net transfers from (to) reserves (details if material )	m	$\ddot{}$
1.33	Net effect of changes in accounting policies	m
1.34	Dividends and other equity distributions paid or payable	m
1.35	Retained profits (accumulated losses) at end of financial period	(4.137)	(4,150)

Intangible and extraordinary items

		Consolidated - current period
		Before tax \$A'000 (a)	Related tax \$A'000 (b)	Related outside +equity interests \$A'000 (c)	Amount (after $\max$ attributable to members SA'000 (d)
2.1	Amortisation of goodwill
2.2	Amortisation of other intangibles
2.3	Total amortisation of intangibles
2.4	Extraordinary items
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

⁺ See chapter 19 for defined terms.

	Condensed consolidated statement of financial position	οf end At current period \$A'000	As shown in last annual report \$A'000	As in last half yearly report \$A'000
	Current assets
4.1	Cash	233	118	160
4.2	Receivables	4	36	29
4.3	Investments	40	40	40
44	Inventories
4.5	Tax assets
4.6	Other (funds to be returned)			30
4.7	Total current assets	277	194	259
	Non-current assets
4.8	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 $($ + mining properties entities)
4.14	Other property, plant and equipment (net)
4.15	Intangibles (net)
4.16	Tax assets
4.17	Other (provide details if material)
4.18	Total non-current assets	ı.	L.
4.19	Total assets	277	194	259
	Current liabilities
4.20	Payables	22	10	23
4.21	Interest bearing liabilities
4.22	Tax liabilities
4.23	Provisions exc. tax liabilities
4.24	Other (accrued audit fee)	6	6
4.25	Total current liabilities	28	16	23
	Non-current liabilities
4.26	Payables
4.27	Interest bearing liabilities
4.28	Tax liabilities
4.29	Provisions exc. tax liabilities
4.30	Other (provide details if material)
4.31	Total non-current liabilities	٠
	Condensed consolidated statement of financial position continued

		$\sim$ ∸	1 O	--
$-2$ - 7.J	Total liabilities $\sim$

⁺ See chapter 19 for defined terms.

4.33	Net assets	249	178	236
	Equity
4.34	Capital/contributed equity	3,671	3,671	3,671
4.35	Reserves	715	715	715
4.36	Retained profits (accumulated losses)	(4,137)	(4,208)	(4,150)
4.37	Equity attributable to members of the	249	178	236
	parent entity
4.38	Outside + equity interests in controlled	$\bullet$
	entities
4.39	Total equity	249	178	236
4.40	Preference capital included as part of	٠	٠
	4.37

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		\$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
6.2	Expenditure incurred during current period
6.3	Expenditure transferred from exploration and
	evaluation
6.4	Expenditure written off during current period
6.5	Acquisitions, disposals, revaluation
	increments, etc.

⁺ See chapter 19 for defined terms.

6.6 Expenditure transferred to mine properties

Closing balance as shown in the consolidated balance sheet (item $4.13$ )

$6.7$

Condensed consolidated statement of cash flows

\$A'000	Current period	Previous corresponding period $-$ \$A'000
Cash flows related to operating activities
7.1 Receipts from customers
7.2 Payments to suppliers and employees	(28)	(39)
Dividends received from associates 7.3
Other dividends received 7.4
Interest and other items of similar nature 7.5 received	6	9
Interest and other costs of finance paid 7.6
7.7 Income taxes paid
7.8 Other (GST Paid)	138	(5)
Recovery of funds from bank - 105
Refund of GST from ATO $-33$
138
7.9 Net operating cash flows	116	(35)
Cash flows related to investing activities
7.10 Payment for purchases of property, plant and
equipment 7.11 Proceeds from sale of property, plant and equipment
7.12 Payment for purchases of equity investments
Proceeds from sale of equity investments 7.13
Paid to other entities to be recovered 7.14		(12)
7.15 Loans repaid by other entities		100
7.16 Other (provide details if material)
7.17 Net investing cash flows		88
Cash flows related to financing activities
7.18 Proceeds from issues of + securities (shares, options, etc.)
7.19 Proceeds from borrowings
7.20 Repayment of borrowings
Dividends paid 7.21
Other (provide details if material) 7.22
7.23 Net financing cash flows
7.24 Net increase (decrease) in cash held	116	53
7.25 Cash at beginning of period	118	107
(see Reconciliation of cash)

$+$ See chapter 19 for defined terms.

7.26 Exchange rate adjustments to item 7.25.

7.27 Cash at end of period

(see Reconciliation of cash)

234	160

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. (If an amount is quantified, show comparative amount.

Reconciliation of cash

Reconciliation of cash at the end of the period (as shown in the consolidated statement of eash flows) to the related items in the accounts is as follows.	Current period \$A'000	Previous corresponding period - \$A'000
Cash on hand and at bank 8.1	234	102
Deposits at call 8.2	$H +$	58
Bank overdraft 8.3	$\mathbf{H}$
Other (provide details) 8.4	m
Total cash at end of period (item 7.27) -8.5	234	160

Other notes to the condensed financial statements

Ratios		Current period	Previous corresponding period
9.1	Profit before tax / revenue Consolidated profit (loss) from ordinary activities before tax ( item 1.5 ) as a percentage of revenue ( item 1.1 )	1183%	(466%)
9.2	Profit after tax $/$ + equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members $item I. II)$ as a percentage of equity (similarly attributable) at the end of the period ( item 4.37)	28.5%	$(17.8\%)$

⁺ See chapter 19 for defined terms.

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.

	2002	2001
Net profit	71,000	(42,000)
Earnings used in calculating basic earnings per share	71,000	(42,000)
Weighted average number of ordinary shares	13,074,000	13,074,000
Basic earnings per share	0.54c	(0.32c)
Diluted earnings per share - same as above

NTA backing (see note 7)	Current period	Previous corresponding period
11.1 Net tangible asset backing per $\pm$ ordinary security	1.9c	l .8c

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).)

12.1	Discontinuing Operations
$'$ N.A.

Control gained over entities having material effect

13.1 Name of entity (or group of entities)

N.A.

• 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)

N.A.

⁺ See chapter 19 for defined terms.

• 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

	\$
j
	$\pmb{\mathbb{S}}$
	\$

Dividends (in the case of a trust, distributions)

15.1 Date the dividend (distribution) is payable

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 $+$ securities are not $+$ 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)

N.A. . . --

N.A.

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

Amount per security

		Amount per security	Franked amount per security at % tax (see note)	Amount per security of foreign source dividend
15.4	(Preliminary final report only) Final dividend: Current year	¢	Ċ
15.5	Previous year	Ċ	e
15.6	(Half yearly and preliminary final reports) Interim dividend: Current year	т¢	e
15.7	Previous year	тĆ.

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

(Preliminary final report only)

		Current year	Previous year
15.8	+Ordinary securities	-е	-é.
-15.9	Preference +securities		e

Half yearly report - interim dividend (distribution) on all securities or

⁺ See chapter 19 for defined terms.

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

• 15.10 ⁺Ordinary securities (each class separately)
• 15.11 Preference + securities (each class separately)
• 15.12 Other equity instruments (each class separately)

Current period \$A'000	Previous corresponding period - \$A'000
NIL	NIL

15.13 Total

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

$\overline{\text{NIL}}$

The last date(s) for receipt of election notices for the $\vec{\tau}$ dividend or distribution plans

N.A.

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)

N.A.

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

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
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	NIL	NIL

⁺ See chapter 19 for defined terms.

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 cu 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 period	Previous corresponding period	Current period \$A'000	Previous corresponding period + \$A'000
NIL
17.2	Total
17.3	Other material interests
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)

18.1	Category of + securities	Total number NIL	Number quoted	Issue price per security (see note (14) (cents)	Amount paid up per security (see note $14)$ (cents)
	Preference + securities (description)
18.2	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions
18.3	+ Ordinary securities	13,074,000	13,074,000 Trading suspended
18.4	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks
18.5	+ Convertible debt securities (description and conversion factor)	NIL
18.6	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted
18.7	Options (description and conversion factor)	NIL.		Exercise price	Expiry date $(if$ any)
18.8	Issued during current period
18.9	Exercised during current period
18.10	Expired during current period	$\blacksquare$
18.11	Debentures (description)	NIL
18.12	Changes during current period (a) Increases through issues
	(b) Decreases through securities matured, converted

⁺ See chapter 19 for defined terms.

18.13	Unsecured notes (description)	NIL
18.14	Changes during current period
	(a) Increases through issues
	(b) Decreases through securities matured, converted

Segment reporting

The company holds investments and operates solely in Australia.

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

• $19.1$ This report is a general purpose financial report prepared in accordance with the listing rules and $AASB$ 1029: Interim Financial Reporting. It should be read in conjunction with the last "annual report and any announcements to the market made by the entity during the period. The financial statements in this report are "condensed financial statements" as defined in AASB 1029: Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. [Delete if preliminary final report.]
• 19.2 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.

The Company had no operating activities during the period.

$19.3$ 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).

NIL

⁺ See chapter 19 for defined terms.

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

NIL

19.5 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).

NIL

$19.6$ 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.

NIL

19.7 Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last ⁺ annual report.

NIL

Additional disclosure for trusts

• Number of units held by the management 20.1 company or responsible entity or their related parties.
• 20.2 A statement of the fees and commissions payable to the management company or responsible entity.

Identify:

• initial service charges
• management fees
• other fees

⁺ See chapter 19 for defined terms.

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Approximate date the "annual report will be available

Compliance statement

$\mathbf{I}$ 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 ASX (see note 12).

Identify other standards used

• $\overline{2}$ This report, and the "accounts upon which the report is based (if separate), 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 $\mathcal{U}$ audited.	The + accounts have been subject to review.
	The "accounts are in the process of being audited or subject to review.	The "accounts have not yet been audited or reviewed.

• 5 If the audit report or review by the auditor is not attached, details of any qualifications are attached/will follow immediately they are available* (delete one). (Half yearly report only the audit report or review by the auditor must be attached to this report if this report is to satisfy the requirements of the Corporations Act.)
• 6 The entity has a formally constituted audit committee.

Sign here:	_________ (Director/Company Secretary)	Date: 13 March 2003
	Print name: Don Wilson

⁺ See chapter 19 for defined terms.

Nates

• $\mathbf{1}$ . 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.
• $2.$ 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

• The definition of "revenue" and an explanation of "ordinary activities" are set Item 1.1 out in AASB 1004: Revenue, and AASB 1018: Statement of Financial Performance.
• This item refers to the total tax attributable to the amount shown in item 1.5. Item 1.6 Tax includes income tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eg, fringe benefits tax).
• $\overline{4}$ . 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.

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

⁺ See chapter 19 for defined terms.

presentation adopted must meet the requirements of $AASB 1026$ . ⁺Mining exploration entities may use the form of cash flow statement in Appendix 5B.

• 1. Net tangible asset backing Net tangible assets are determined by deducting from total tangible assets all claims on those assets ranking ahead of the $\phi$ ordinary securities (ie, all liabilities, preference shares, outside $\pm$ equity interests etc). $\pm$ 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.
• $12.$ 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.
• 1. 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.
• 1. 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.

⁺ See chapter 19 for defined terms.

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. $\widehat{AAB}$ 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 A\$, all references to \$A 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.

⁺ See chapter 19 for defined terms.

⁺ See chapter 19 for defined terms.

⁺ See chapter 19 for defined terms.

Auto Enterprises Limited

ABN 28 001 894 033

Declaration by Directors

The directors of the Company declare that:

1. The financial statements, comprising the Statements of Financial Performance, Position and Cash Flows, and accompanying notes, are in accordance with the Corporations Act 2001 and:

(a) comply with Accounting Standards and the Corporations Regulations 2001; and

(b) give a true and fair view of the financial position as at 31 December 2002 and of the performance for the half-year ended on that date of the Company.

1. In the director's opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:

Donald E Wilson Director

SYDNEY 13 March 2003

Auto Enterprises Limited

ABN 28 001 894 033

Directors' Report

The directors present their report on the company for the half-year ended 31 December 2002.

The names of persons who were directors of Auto Enterprises Limited during the whole of the half year and are directors up to the date of this report are: J Bruce Gibson, Geoffrey J Gibbs and Donald E Wilson as directors and Brian K Tonkin as alternate for J B Gibson. Daniel V Fisher was appointed a director from 1 March 2003.

Review of Operations

The Company's only activities during the period were:

• the investment of cash
• negotiations with a view to acquiring an operating business for the Company
• actions related to the use of the Company's funds without the authorization of the Board as reported in the Directors' Report for the year ended 30 June 2002 and in the Notes to the Accounts as at 30 June 2002.

As at the date of this report the Company has not acquired, and the directors have no agreement or undertaking to acquire an operating business. Opportunities for doing so continue to be sought and investigated.

On 14 November 2002 a liquidator was appointed to the third party company. Halion Limited, to which Company funds were transferred in a previous period without the approval of the board of directors. Proceedings indicate that no additional funds can be recovered from Halion Limited. An amount of \$60,000 not returned of funds transferred was fully provided for in the accounts for the year to 30 June 2002, and has been written off to the provision in the accounts to 31 December 2002.

In relation to the set-off in a previous period of the Company's term deposit as security for the bank overdraft of Halion Limited without the approval of the Company's board of directors, negotiations with the bank, National Australia Bank, reached a final settlement during the half year under review. Under the agreement, National Australia Bank retained \$125,000 of the Company's term deposit, resulting in an amount of \$105,000 of \$230,000 of the provision made for possible losses being no longer reguired. This amount has been transferred to the Statement of Financial Performance in the accounts to 31 December 2002

The directors have taken steps to enforce quarantees from certain parties for reimbursement of any loss to the Company occurring up to 30 June 2003 arising from the Halion Limited matter referred to above. For commercial and legal reasons the directors deem it prudent not to comment on courses of action and the likelihood of a successful outcome.

Revenue for the six months under review was \$6,439 (previous corresponding period \$11,018), comprising interest income. Net profit attributable to shareholders was \$71,067 (previous corresponding period loss \$42,171). Net profit for the six months under review includes an amount of \$105,000 written back from a provision for losses no longer required as described above.

This report is made in accordance with a resolution of the Board of Directors and is signed on behalf of the directors by:

Don Wilson Director

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