MYSTATE LIMITED — Audit Report / Information 2008

Sep 8, 2009

Chartered Accountants

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Wise Lord & Ferguson

advice to advantage

INDEPENDENT AUDITOR’S REPORT TO MYSTATE LIMITED

We have audited the special purpose financial report of MyState Limited, which comprises the pro forma balance sheet as at 31 December 2008. The pro forma balance sheet is contained in section 6.12(b) of the MyState Financial Credit Union of Tasmania Limited information booklet and the Tasmanian Perpetual Trustees Limited explanatory booklet. This report only relates to the column headed “Consolidated December 2008”. This report should be read in conjunction with the financial statements of Tasmanian Perpetual Trustees Limited and MyState Financial Credit Union of Tasmania Limited, which comprises the balance sheets as at 31 December 2008, and the income statements, statements of changes in equity and cash flow statements for the half year ended on that date, statements of significant accounting policies, other explanatory notes and the directors’ declarations of those entities as at the 31 December 2008 and from time to time during the half year.

Directors Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the financial report and have determined that the accounting policies detailed in the financial statements of Tasmanian Perpetual Trustees Limited and MyState Financial Credit Union of Tasmania Limited are appropriate for the preparation of this special purpose financial report.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used are appropriate to the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

1[st] floor 160 Collins Street Hobart 7000, PO Box 1083 Hobart TAS 7001 Tel: (03) 6223 6155 Fax: (03) 6223 8993 Email: email@wlf.com.au Internet: www.wlf.com.au

Partners Peter Beven, Harvey Gibson, Danny McCarthy, Douglas Thomson, Joanne Doyle, Stuart Clutterbuck, Ian Wheeler, Dean Johnson, Marg Marshall Managers: Sharon Breen, Alicia Leis, Melanie Richardson, Nick Carter, Paul Lyons, Kate Barnes, Simon Jones

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The financial report has been prepared for the purpose of fulfilling directors’ financial reporting requirements under listing rule 1.3.5(c) of the Australian Securities Exchange. We disclaim any assumption of responsibility for any reliance on this 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 it was prepared.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditor’s Opinion

In our opinion the financial report of MyState Limited is in accordance with the Corporations Act 2001 , including:

• a. the information contained in the financial report has been correctly sourced from the financial statements of Tasmanian Perpetual Trustees Limited and MyState Financial Credit Union of Tasmania Limited as at the 31 December 2008.

• b. The accumulation of the numbers included in the financial report has been accurately completed in accordance with the assumptions and are not materially misstated.

Exceptions noted in our audit.

Without qualification to the opinion expressed above, we draw attention to the following matters, deemed to be immaterial, which arose in our audit

• i. the Land and Buildings is overstated by $100,000 and should be $17,969,816.

• ii. the heading Special Service Providers – Current a/c should be titled Investment in Associate.

• iii. the amount for Investment in Associate should be $8,752,646. This adjustment of $7,000,000 relates to the fair value calculation of this asset made when Goodwill on consolidation was calculated.

• iv. the corresponding adjustment to that made in iii. above is made to Retained Profits/(Accumulated Losses) which should be $173,838.

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D J MCCARTHY PARTNER WISE LORD & FERGUSON

1/160 Collins Street Hobart TAS 7000 Dated: 19 August 2009

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Pro forma summary balance sheet

		Consolidated
		December 2008
		$
Net Loans		1,468,526,898
Cash on Hand		16,540,242
Special Service Providers - Current a/c		1,752,646
Short Term Investments		237,415,817
Prepayments		2,412,361
Sundry Debtors		8,504,970
Shares and SDDs in SSPs		4,130,224
Goodwill & Intangibles		44,706,455
Other Financial Assets		1,976,982
Deferred Tax Asset		8,533,998
Land & Buildings, equipment and l/hold improvements		18,069,816
TOTAL ASSETS		1,812,470,409
LIABILITIES
Deposits
At Call and fxed term		1,305,522,786
ConQuest & RMBS Notes		296,564,226
Total Deposits		1,602,087,012
Creditors & Accruals and other liabilities		23,851,183
Provision for Staff Entitlements		6,095,917
Provision for Income tax		742,246
Provision for Deferred Tax Liability		489,885
TOTAL LIABILITIES		1,633,266,243
NET ASSETS		179,204,166
SHAREHOLDERS’ EQUITY
Share Capital		65,803,488
General & Capital Profts Reserves		120,226,840
Retained profts/(Accumulated losses)		-6,826,162
TOTAL EQUITY		179,204,166