RAIDEN RESOURCES LIMITED — Annual Report 2007

Aug 30, 2007

29 th August2007

CompanyAnnouncementOffice AustralianStockExchange SydneyNSW 2000

Preliminaryfinalreportforyearending30June2007(ASX:MDM)

InaccordancewithlistingRule4.3A attachedisthePreliminaryFinalReport (Appendix4E)fortheyearending30June2006.

Thepast12monthshasseenMedicalMonitorsLimitedshiftfortheoldtothenew.

• x TheCompanyhasanew Chairmanandhasreplacedfourdirectorscreating anew experiencedandfocusedboardwithaclearobjectivetoincreasethe shareholderwealth.
• x A new managementteam focusedonincreasingrevenueanddecreasing costs.
• x TheCompanyhaswrittendownallnonperformingandlossmakingassetsof thecompanyallofwhichrelatethemedicalmonitoringandmedicalproduce salebusinesses.
• x Duringtheperiod,theCompanyhaspurchasedthree"Over50'sGated Communities"ShellVillagesandResortsBrisbaneRiverTerraces,Shell VillagesandResortsCooroyandShellVillagesandResortsHunterValley. Combinedthesethreevillageswillgenerate$1,090,000inrevenueper annum.
• x Thenew managementteam hasalsocutthemonthlyburnratefrom $120,000permonthto$37,000permonth.

LYNN THOMPSON MEDICAL MONITORS LIMITED

Medical Monitors Limited

MEDICAL MONITORS LIMITED

AB N: 6 8 0 0 9 1 6 1 5 2 2

Ap p e n d ix 4 E fo r th e y e a r e n d e d 3 0 J u n e 2 0 0 7

MEDICAL MONITORS LIMITED AB N: 6 8 0 0 9 1 6 1 5 2 2 AND CONTROLLED ENTITIES

AP P ENDIX 4 E P RELIMENARY RESU LTS F OR TH E Y EAR ENDED 3 0 J U NE 2 0 0 7

CONTENTS

Announcements to the Market
Income Statement	2
Balance Sheet	3
Statement of Changes in Equity	$\overline{4}$
Cash Flow Statement	5
Notes to the Financial Statements	6

CORP ORATE DETAILS

Directors:	Mr Peter Berger (appointed 28/02/07)Mr Boris PatkinMr Stephen Grimson (appointed 11/12/06)Mr Peter Dunne (appointed 28/02/07)Mr John Bennett (appointed 24/04/07)Dr Alan Shell (retired 1/05/07)
Company Secretary: Lynn Thompson
Registered Office:	213 Brisbane Terrace,GOODNA, QLD, AUSTRALIA, 4300
Administration Office: 213 Brisbane Terrace,	GOODNA, QLD, AUSTRALIA, 4300
Share Registry:	COMPUTERSHARE INVESTOR SERVICES PTY LIMITEDLEVEL 2, RESERVE BANK BUILDING,45 ST GEORGE'S TERRACE,PERTH, WA, AUSTRALIA, 6000
Auditors:	Sneddon McKeownLevel 2175 Scott StreetNEWCASTLE NSW 2300

MEDICAL MONITORS LIMITED AB N: 6 8 0 0 9 1 6 1 5 2 2 AND CONTROLLED ENTITIES

AP P ENDIX 4 E P RELIMENARY RESU LTS F OR TH E Y EAR ENDED 3 0 J U NE 2 0 0 7

				$ A
Revenuesfromordinaryactivities	d o w n	5 4 %	to	7 2 1 ,5 0 1
Lossfromordinaryactivitiesaftertaxattributabletomembers	u p	3 1 1 %	to	5 ,6 5 3 ,0 8 1
Lossfromextraordinaryitemsaftertaxattributabletomembers				N/A
Netlossfortheperiodattributabletomembers	u p	3 1 1 %	to	5 ,6 5 3 ,0 8 1

Div id e n d s (d is trib u tio n s )	Amo u n t p e r s e c u rity	F ra n k e da mo u n t p e r s e c u rity
Interim dividend	NIL	NIL
P revio u s c o rres p o nding p erio d	NIL	NIL
R ec o rd da te fo r determiningentitlement to th e dividend	N/A	N/A

B rief ex p la na tio n o f a ny o f th e fig u res rep o rted a b o ve a nd s h o rt deta ils o f a ny b o nu s o r c a s h is s u e o r o th er items o f imp o rta nc e no t p revio u s ly relea s ed to th e ma rk et:

T h e C o mp a ny h a s w ritten do w n a ll no n-p erfo rming a nd lo s s ma k ing a s s ets o f th e c o mp a ny a ll o f w h ic h rela te th e medic a l mo nito ring a nd medic a l p ro du c e s a le b u s ines s es a nd th e $ 5 ,6 5 3 ,0 8 1 lo s s is th erefo re ma inly a ttrib u ta b le to th e lo s s ma k ing a nd no n p erfo rming rig h t do w ns to th e a mo u nt o f $ 3 ,4 0 5 ,7 5 7 .

D u ring th e p erio d th e c o mp a ny h a s p u rc h a s ed th ree "O ver 5 0 's g a ted C o mmu nities " S h ell V illa g es a nd R es o rts B ris b a ne R iver T erra c es , S h ell V illa g es a nd R es o rts C o o ro y a nd S h ell V illa g es a nd R es o rts H u nter V a lley . C o mb ined th es e th ree villa g es w ill g enera te $ 1 ,0 9 0 ,0 0 0 in revenu e p er a nnu m.

T h e new ma na g ement tea m h a ve a ls o c u t th e mo nth ly b u rn ra te fro m $ 1 2 0 ,0 0 0 p er mo nth to $ 3 7 ,0 0 0 p er mo nth .

A t th e da te o f th is a nno u nc ement th e fina nc ia l a c c o u nts o f M edic a l M o nito rs L imited a re in th e p ro c es s o f b eing a u dited.

MEDICAL MONITORS LIMITED ABN: 68 009 161 522 AND CONTROLLED ENTITIES INCOME STATEMENT F OR TH E Y EAR ENDED 3 0 J U NE 2007

		C o n s o lid a te d G ro u p
	Note	2007	2006
		$	$
S a le s R e v e n u e	2	1 28 ,1 77	762,5 28
O th e r in c o m e	2	5 9 3 ,3 24	5 5 7,1 3 2
C h a n g e s in in v e n to rie s o f fin is h e d g o o d s		(1 9 ,24 6)	(3 79 ,206)
C o n s u ltin g e x p e n s e s		(63 5 ,8 3 5 )	(1 ,01 6,5 1 5 )
C o m m is io n s		(4 64 ,03 5 )	-
C o rp o ra te e x p e n s e s		(9 5 ,29 7)	(277,21 2)
D e p re c ia tio n a n d a m o rtis a tio n		(1 9 2,8 28 )	(1 4 6,1 1 3 )
F in a n c e c o s ts		(69 3 ,4 5 2)	(1 4 0,9 1 8 )
F o re ig n c u rre n c y lo s s		(23 6)	(20,1 73 )
In te rn a tio n a l m a rk e tin g e x p e n s e s		(5 0,28 8 )	(77,8 78 )
P ro v is io n fo r w rite d o w n s		(3 ,4 05 ,75 7)	-
O th e r e x p e n s e s		(4 4 2,708 )	(29 6,28 4 )
P ro v is io n fo r w rite d o w n o f in v e n to ry		-	(25 4 ,1 4 4 )
R e n ta l p ro p e rty e x p e n s e s		(8 8 ,9 5 4 )	-
R e n t		(5 5 ,73 5 )	(73 ,4 00)
S ta ff e x p e n s e s		(4 9 5 ,4 4 9 )	(4 5 3 ,9 28 )
L o s s fro mo rd in a ry a c tiv itie s b e fo re in c o m e ta x
e x p e n s e		(5 ,9 1 8 ,3 1 9 )	(1 ,8 1 6,1 1 1 )
In c o m e ta x e x p e n s e	3	265 ,23 8	-
P ro fit a ttrib u ta b le to m e m b e rs o f th e p a re n t e n tity		(5 ,65 3 ,08 1 )	(1 ,8 1 6,1 1 1 )
B a s ic e a rn in g s p e r s h a re (c e n ts p e r s h a re )	4	(7.4 9 )	(3 .00)
D ilu te d e a rn in g s p e r s h a re (c e n ts p e r s h a re )	4 b	-	-

T h e a c c o m p a n y in g n o te s fo rm p a rt o f th e s e fin a n c ia l s ta te m e n ts .

MEDICAL MONITORS LIMITED ABN: 68 009 161 522 AND CONTROLLED ENTITIES BALANCE SHEET AS AT 30 JUNE 2007

			Consolidated Group
	Note	2007	2006
		$	$
A SSE TS
CU RRE N T A SSE TS
Cash and cash eq uivalents	5	306,588	78,399
Trade and other receivables	6	26,768	1,209,129
Inventories	7	-	19,246
Other current assets	11	9,103	26,376
TOTA L CU RRE N T A SSE TS		342,459	1,333,150
N ON -CU RRE N T A SSE TS
Property, plant and eq uipment	9	14,346,622	375,507
Intangible assets	10	2,972,406	5,204,587
Other non-current assets	11	20,640	2,830
TOTA L N ON -CU RRE N T A SSE TS		17,339,668	5,582,924
TOTA L A SSE TS		17,682,127	6,916,074
CU RRE N T LIA BILITIE S
Trade and other payables	12	1,526,695	1,312,871
Financial liabilities	13	2,628,532	482,227
Short-term provisions	14	3,240	62,598
TOTA L CU RRE N T LIA BILITIE S		4,158,467	1,857,696
N ON -CU RRE N T LIA BILITIE S
Financial liabilities	13	11,820,500	2,038,925
TOTA L N ON -CU RRE N T LIA BILITIE STOTA L LIA BILITIE S		11,820,50015,978,967	2,038,9253,896,621
N E T A SSE TS		1,703,160	3,019,453
E Q U ITY
Issued capital		40,083,421	35,746,633
Reserves		493,152	493,152
Retained earnings			(38,873,413) (33,220,332)
Parent interest		1,703,160	3,019,453
TOTA L E Q U ITY		1,703,160	3,019,453

The accompanying notes form part of these financial statements.

MEDICAL MONITORS LIMITED ABN: 68 009 161 522 AND CONTROLLED ENTITIES STATEMENT OF CHANG ES IN EQ UITY FOR THE YEAR ENDED 30 JUNE 2007

	Share Capital	AccumulatedLosses	Reserves	Total
Cons olid atedG roup	$	$	$	$
Balance at 1 July 2005	34,761,131	(31,404,221)	493,152	3,850,062
Profit attributable to members of parent entity		(1,816,111)		(1,816,111)
Contribution of equity net of transaction costs	985,502			985,502
Sub-total	35,746,633	(33,220,332)	493,152	3,019,453
Dividends paid or provided for		-		-
Balance at 30 June 2006	35,746,633	(33,220,332)	493,152	3,019,453
Profit attributable to members of parent entity		(5,653,081)		(5,653,081)
Contribution of equity net of transaction costs	4,336,788			4,336,788
Sub-total	40,083,421	(38,873,413)	493,152	1,703,160
Balance at 30 June 2007	40,083,421	(38,873,413)	493,152	1,703,160

The accompanying notes form part of these financial statements.

MEDICAL MONITORS LIMITED ABN: 68 009 161 522 AND CONTROLLED ENTITIES

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2007

Consolidated Group

	Note	2007$	2006$
CASHFLOWS FROMOPERATING ACTIV ITIESReceipts from customersInterest receivedPayments to suppliers and employeesFinance costs		1,124,11530,612(2,014,499)(544,959)	819,8941,759(2,418,504)(140,918)
Net cash provided by (used in) operating activities	16a	(1,404,731)	(1,737,769)
CASHFLOWS FROMINV ESTING ACTIV ITIESRefund depositsPurchase of property, plant and equipmentPayment for subsidiary, net of cash acquiredNet cash provided by (used in) investing activities	16	(14,529)(9,811,852)-	-(301,868)-
		(9,826,381)	(301,868)
CASHFLOWS FROMFINANCING ACTIV ITIESProceeds from issue of sharesProceeds from secured borrowingsProceeds from unsecured borrowingsRepayment of borrowings		1,060,0006,183,0004,368,531(151,994)	985,502(27,838)1,161,790(217,850)
Net cash provided by (used in) financing activities		11,459,537	1,901,604
Net increase in cash held		228,425	(138,033)
Cash at beginning of financial year		78,399	216,432
Effect of exchange rates on cash holdings in foreigncurrencies		(236)	-
Cash at end of financial year	5	306,588	78,399

The accompanying notes form part of these financial statements.

Note 1 Statem ent of Sig nificant Accounting P olicies

The financial report has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers the consolidated group of Medical Monitors Limited and controlled entities, and Medical Monitors Limited as an individual parent entity. Medical Monitors Limited is a listed public company, incorporated and domiciled in Australia.

The financial report of Medical Monitors Limited and controlled entities, and Medical Monitors Limited as an individual parent entity comply with all International Financial Reporting Standards (IFRS) in their entirety.

The following is a summary of the material accounting policies adopted by the consolidated group in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of P reparation

The accounting policies set out below have been consistently applied to all years presented.

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Accounting P olicies

(a) P rinciples of Consolidation

A controlled entity is any entity Medical Monitors Limited has the power to control the financial and operating policies so as to obtain benefits from its activities.

A list of controlled entities is contained in Note 8 to the financial statements. All controlled entities have a J une financial year-end.

All inter-company balances and transactions between entities in the consolidated group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent entity.

Where controlled entities have entered or left the consolidated group during the year, their operating results have been included/excluded from the date control was obtained or until the date control ceased.

(b ) Incom e Tax

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the consolidated group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Note 1 Statement of Significant Accounting Policies (Cont.)

(c) Inv entories

Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of normal operating capacity. Costs are assigned on the basis of weighted average costs. The cost of mining stocks includes direct materials, direct labour, transportation costs and variable and fixed overhead costs relating to mining activities.

(f) Property, Plant and Eq uipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Property

Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arms length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Plant and eq uipment

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

The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the income statement. Each year the difference between depreciation based on the revalued carrying amount of the asset charged to the income statement and depreciation based on the assets original cost is transferred from the revaluation reserve to retained earnings.

Depreciation

The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over their useful lives to the consolidated group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

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

Class of Fixed Asset	Depreciation Rate
Buildings	2.50%
Plant and equipment	13-40%
Leased plant and equipment	25%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

Note 1 Statement of Significant Accounting Policies (Cont.)

(i) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to entities in the consolidated group are classified as finance leases. Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(j) Financial Instruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Financial assets at fair value th rough profit and loss

A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139: Recognition and Measurement of Financial Instruments. Derivatives are also categorised as held for trading unless they are designated as hedges. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Held-to-maturity investments

These investments have fixed maturities, and it is the group's intention to hold these investments to maturity. Any held-tomaturity investments held by the group are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity.

Financial liabilities

Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.

Fair value

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

Impairment

At each reporting date, the group assess whether there is objective evidence that a financial instrument has been impaired. In the case of available-for sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.

(k ) Impairment of Assets

At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the income statement.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

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

Note 1 Statement of Significant Accounting Policies (Cont.)

(n) Intangibles

Goodw ill

Goodwill and goodwill on consolidation are initially recorded at the amount by which the purchase price for a business or for an ownership interest in a controlled entity exceeds the fair value attributed to its net assets at date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Patents and trademarks

Patents and trademarks are recognised at cost of acquisition. Patents and trademarks have a finite life and are carried at cost less any accumulated amortisation and any impairment losses. Patents and trademarks are amortised over their useful life ranging from 15 to 20 years.

Research and development

Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs are capitalised only when technical feasibility studies identify that the project will deliver future economic benefits and these benefits can be measured reliably.

Development costs have a finite life and are amortised on a systematic basis matched to the future economic benefits over the useful life of the project.

(o) Foreign Currency Transactions and Balances

Functional and presentation currency

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

Transaction and balances

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

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

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the income statement.

Group companies

The financial results and position of foreign operations whose functional currency is different from the group's presentation currency are translated as follows:

• assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
• income and expenses are translated at average exchange rates for the period; and
• retained earnings are translated at the exchange rates prevailing at the date of the transaction.

Exchange differences arising on translation of foreign operations are transferred directly to the groups foreign currency translation reserve in the balance sheet. These differences are recognised in the income statement in the period in which the operation is disposed.

(p) Employee Benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs.

Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

Note 1 Statement of Significant Accounting Policies (Cont.)

Equity-settled compensation

The group operates a number of share-based compensation plans. These include both a share option arrangement and an employee share scheme. The bonus element over the exercise price of the employee services rendered in exchange for the grant of shares and options is recognised as an expense in the income statement. The total amount to be expensed over the vesting period is determined by reference to the fair value of the shares of the options granted.

(q) Provisions

Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(s) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within shortterm borrowings in current liabilities on the balance sheet.

(t) Revenue

Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Revenue from investment properties is recognised on an accruals basis or straight line basis in accordance with leases agreements.

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

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

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

(u) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in income in the period in which they are incurred.

(w) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(x) Government Grants

Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match the grant to the costs they are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the asset on a straight-line basis.

(y) Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

New Australian Accounting Standards

As at the date of this report there are a number of new Australian Accounting Standards that have been issued but are not yet effective. The company has assessed the impact of these new Australian Accounting Standards and has concluded that they would have no material impact except for those noted below:

AASB 7: Financial Instruments: Disclosures

AASB 7 is a disclosure standard so will have no direct impact on the amounts included in the company's financial statements. However, the amendments will result in changes to the financial instrument disclosures included in the company's financial report.

Note 1 Statement of Significant Accounting Policies (Cont.)

Critical accounting estimates and judgments

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

Key Estimates — Impairment

The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

Full impairment has been recognised in respect of goodwill for the year ended 30 June 2007.

The controlled comapny has been written down to its proposed value in the contract of sale at 30 June 2007.

Key J u dgments — P rovision for impairment of Rec eivab les

Included in accounts receivable at 30 June 2007 is an amount receivable from sales made to Primedical Inc during the last financial year amounting to $1,173,576.The directors believe that the full amount of the debt is not recoverable, and provision for impairment of receivables has been made at 30 June 2007.

The financial report was authorised for issue on 30 August 2007 by the board of directors.

Revenue Note 2

	Note	Consolidated Group
		2007	2006
		$	$
Sales Revenue
—sale of goods		128,177	762,528
Total Sales Revenue		128,177	762,528
Other Revenue
—interest received		32,161	-
—rental revenue for property investment		556,706	-
—services revenue		-	135,214
Total Other Revenue		588,867	135,214
Total Sales Revenue and Other Revenue		717,044	897,742
Other Income
—other income		4,457	421,918
Total Other Income		4,457	421,918

Note 3 Income Tax Expense

			Consolidated Group
			2007	2006
		Note	$	$
(a)	The components of tax expense comprise:
	Current tax		(265,238)
	Deferred tax		-
			(265,238)	-
(b)	The prima facie tax on profit from ordinary activities beforetax as followsPrima facie tax payable on profit from ordinary activities
	before income tax at 30% (2006: 30%)
	consolidated group—		-	-
			-	-
	Less:
	Tax effect of:
	—Research and development offset		265,238	-
	Income tax attributable to entity		(265,238)	-

Earnings per Share Note 4

				Consolidated Group
				2007	2006
				No.	No.
(a)Weighted average number of ordinary shares outstanding during the year used in			75,452,664	60,077,182
		Weighted average number of options outstandingWeighted average number of converting notes on issue		-17,304,712	--
		Weighted average number of contingently issued shares		590,628	-
		Weighted average number of ordinary shares outstanding during the year used in
		calculating dilutive EPS		17,895,340	-
(b)		Diluted earnings per share is not reflected as the result is anti-dilutive in nature.
Note 5		Cash and Cash Equivalents
			Note	Consolidated Group
				2007	2006
				$	$
		Cash at bank and in hand		306,588	78,399
				306,588	78,399
Note 6		Trade and Other Receivables
			Note	Consolidated Group
				2007	2006
				$	$
	CURRENT
	Trade receivables			1,200,345	1,209,129
		Provision for impairment of receivables		(1,173,577)	-
				26,768	1,209,129
Note 7		Inventories
			Note	Consolidated Group
				2007	2006
				$	$
	CURRENT
At cost
		Raw materials and stores		207,857	207,857
	Work in progress			158,783	158,783
		Provision for obsolesce		(366,640)	(347,394)
				-	19,246

Note 8 Controlled Entities

(a) Controlled Entities Consolidated

	Country of Incorporation	Percentage Owned (%)*
Parent Entity:		2007	2006
Medical Monitors Limited	Australia
Subsidiaries of Medical Monitors Limited:
Heart Monitors Pty Ltd	Australia	100.00%	100.00%
K algoorlie Tailings Project Pty Ltd	Australia	100.00%	100.00%
Shell Villages &Resorts BRT Pty Ltd	Australia	100.00%	-
Shell Villages &Resorts Cooroy Pty Ltd	Australia	100.00%	-
Shell Villages &Resorts HV Pty Ltd	Australia	100.00%	-
Shell Villages &Resorts Helidon Spa Pty Ltd	Australia	100.00%	-
Shell Villages &Resorts Moollymook Pty Ltd	Australia	100.00%	-
Medical Monitors (UK ) Limited	United K ingdom	100.00%	100.00%
Wellness Monitors Inc.	USA	100.00%	100.00%
E-Medicine Services Limited	United K ingdom	100.00%	100.00%
* Percentage of voting power is in proportion to ownership
Note 9Property, Plant and Equipment
		Consolidated Group2007	2006
		$000	$000
LAND AND BUILDINGS
Freehold land at:
at cost		7,493,023	299,134
Total Land		7,493,023	299,134
Buildings at:
at cost		6,719,677	-
Less accumulated depreciation		(94,248)	-
Total Buildings		6,625,429	-
Total Land and Buildings		14,118,452	299,134
PLANT AND EQUIPMENT
Plant and equipment:
At cost		303,753	283,630
Accumulated depreciation		(100,532)	(275,349)
		203,221	8,281
Leased plant and equipment
Capitalised leased assets		470,394	470,394
Accumulated amortisation		(469,801)	(432,842)
		593	37,552
Furniture and fittings
At cost		49,651	56,318
(Accumulated depreciation)		(27,550)	(25,778)
		22,101	30,540
Office equipment
At cost		5,808	-
(Accumulated depreciation)		(3,553)2,255	--
Total plant and equipment		228,170	76,373
Total Property, Plant and Equipment		14,346,622	375,507

Intangible Assets Note 10

			Consolidated Group
			2007	2006
			$	$
Goodwill
Cost			2,634,662	2,634,662
	Accumulated impairment losses		(2,634,662)	(1,580,795)
Net carrying value			-	1,053,867
Intellectual property
Cost			5,929,600	5,929,600
	Accumulated amortisation and impairment		(2,957,194)	(1,778,880)
Net carrying value			2,972,406	4,150,720
Total intangibles			2,972,406	5,204,587
Note 11	Other Assets
			Consolidated Group
			2007	2006
			$	$
CURRENT
Prepayments			9,103	26,376
			9,103	26,376
NON-CURRENT
Security Deposits			20,64020,640	2,8302,830
Note 12	Trade and Other Payables
		Note	Consolidated Group
			2007	2006
			$	$
CURRENT
Unsecured liabilities
Trade payables			1,445,743	1,272,871
	Sundry payables and accrued expenses		80,952	40,000
			1,526,695	1,312,871
Note 13	Financial Liabilities
		Note	Consolidated Group
			2007	2006
			$	$
CURRENT
Unsecured liabilities
Lease liability			14,918	47,231
Convertible notes			300,000	-
	Government R&D start loan		434,996	434,996
Loans at Call			1,878,618	-
			2,628,532	482,227
NON-CURRENT
Unsecured liabilities
Lease liability			-	14,276
Convertible notes			2,330,000	-
Unsecured borrowing			3,307,500	2,024,649
			5,637,500	2,038,925
Secured liabilities
Commercial Bills			6,183,0006,183,000	--
			11,820,500	2,038,925

Note 14 Provision for Long-term Employee Benefits

		Consolidated Group
	CURRENT	2007	2006
		$	$
	Employee Entitlements - Annual Leave
	Opening balance at beginning of year	62,598	75,571
	Amounts used	(62,339)	(12,973)
	Balance at end of the year	259	62,598
	PAYG Witholding payable
	Opening balance at beginning of year	8,530	-
	Amounts used	(5,549)	-
	Balance at end of the year	2,981	-
	Analysis of Total Provisions	Consolidated Group
		2007	2006
		$	$
Current		3,240	62,598
	Non-current	-3,240	-62,598
Note 15	Contingent Liabilities and Contingent Assets
	There were no contingent assets or contingent liabilities at the balance date.
Note 16	Cash Flow Information
			Consolidated Group
		2007	2006
		$	$
(a)	Reconciliation of Cash Flow from Operations with Profit
	after Income Tax
	Profit after income taxCash flows excluded from profit attributable to operating	(5,653,081)	(1,816,111)
	activities
	Finance costs on debentures
	Non-cash flows in profit
	Amortisation and depreciation	192,828	146,112
	Amount set aside to provisions	-	(131,119)
	Write-downs to recoverable amount	3,405,757	-
	Changes in assets and liabilities, net of the effects of
	purchase and disposal of subsidiaries
	(Increase)/decrease in trade and term receivables	702,126	(498,678)
	(Increase)/decrease in prepayments	25,530	144,947
	(Increase)/decrease in inventories		213,640
	Increase/(decrease) in trade payables and accruals	(137,249)	260,733
	Increase/(decrease) in unearned income		(44,320)
	Increase/(decrease) in deferred taxes payable
	Increase/(decrease) in provisions	59,358	(12,973)
	Cash flow from operations	(1,404,731)	(1,737,769)

Note 17 Events After the Balance Sheet Date

Change of name

As previously announced, the shareholders passed a resolution for the company to change its name to Shell Villages and Resorts Limited.

Change in the nature of activities

As previously announced, the shareholders passed a resolution for the company to change its activities to a property based company with a major focus on "Over 50's Residential Gated Communities". .

Consolidation of Capital

As previously announced, the shareholders approved consolidation of share capital on one to three basis.

Placement

As previously announced, the shareholders approved the allotment and issue of 55,000,000 shares on a post-Consolidation basis pursuant to a prospectus, at an issue price of not less than 80% of the average market price of the Shares calculated over the previous 5 days on which sales in the Shares were recorded before the day on which the prospectus is signed

Note 18 Related Party Transactions

1. During the financial year the company received invoices for consultancy services in the normal course of business from:

KaiTek International Pty Ltd, a company associated with Dr A. Shell	$211,818
Patkin Investments Pty Ltd, a company associated with Mr B. Patkin	$59,011
Mistic Investments Ltd, a company associated with Dr A. Shell	$50,000
And Technologies Pty Ltd, a company associated with Dr A. Shell	$27,450
Hillridge Pty Ltd, a company associated with Dr A. Shell	$5,000
Dr A Shell	$8,200

1. During the financial year the company received invoices for secretary services in the normal course of business from:

Lynn Thompson

$7,350

Note 19 Net Tangible Asset Backing

	Consolidated Group
	2007	2006
Net Tangible Asset Backing per ordinary security (cents per share)	(1.68)	(3.36)