SAFEROADS HOLDINGS LIMITED — Annual Report 2003

Dec 13, 2005

SAFEROADS PTY. LTD.

$\ddot{\phantom{a}}$

$\frac{1}{2} \left( \frac{1}{2} \right) \left( \frac{1}{2} \right) \left( \frac{1}{2} \right)$

$\sim 10^{-1}$

$\mathcal{A}^{\pm}$

$\sim 10$

$\sim 10^{-10}$

$\mathcal{L}^{\text{max}}{\text{max}}$ and $\mathcal{L}^{\text{max}}{\text{max}}$

$\sim$ $\sim$

A.B.N. 69 057 357 801

$\label{eq:2.1} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{R}^3} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{R}^3} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{R}^3} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{R}^3} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{R}^3} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{R}^3} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{R}^3} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{R}^3} \frac{1}{\sqrt{2\pi}}\int_{\mathbb{$

FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2003

$\sim 10$

$\sim 10^7$

$\sim 10^7$

DIRECTORS' DECLARATION

The directors have determined that the company is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies described in Note 1 to the financial statements.

The directors of the company declare that:

• $11$ the financial statements and notes, presents fairly the company's financial position as at 30th June 2003 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements;
• $\overline{2}$ . in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and pavable.

This declaration is made in accordance with a resolution of the Board of Directors:

Director

..................................... Darren John Hotchkin

Director

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Jeffrey Stewart Herdman

Dated this day of

. . . . ...

TRADING, PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED JOTH JUNE 2003

Last Year		This Year
	SALESSales
	Freight Collected		12,610,555334,513
			12,945,068
	LESS: COST OF GOODS SOLD
$\blacksquare$	Opening Stock	642,864
$\overline{\phantom{a}}$	Purchases	7,014,087
	Advertising	47.297
	Agency Payments	324,965
	Equipment Repairs & Maintenance	10,129
	Subcontracting	724,996
٠	Motor Vehícle Expenses	39,349
$\blacksquare$	Travelling Expenses	62,727
$\blacksquare$	Waste Disposal	32.954
	Closing Stock	859,931
			8,039,437
	LESS: DIRECT COSTS
	Product Development	35,740
۰	Royalties	17,205
	Freight Expense	315,492
	Sundry Supplies	49,377
			417,814
	GROSS PROFIT FROM TRADING		4,487,817

The accompanying notes form part of these financial statements.

This report is to be read in conjunction with the attached compilation report.

÷.

$\bar{z}$

$\bar{z}$

TRADING, PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30TH JUNE 2003

Last Year		This Year
$\blacksquare$	OTHER INCOMEInterest ReceivedGrants ReceivedOther Income	9288,6728,179
	Profit on Sale of Non-currentAssetsLoss on Sale of Non-current	4,645
	Assets	(6, 115)
			16,309
			4,504,126
	EXPENDITUREAccountancy Fees	7,900
	Advertising	42,834
÷	Bank Charges	7,227
	Amortization - Patents	3,633
٠	Computer Expenses	1,462
٠	Cleaning	1,913
٠	Consultancy Fees	19,934
$\overline{\phantom{a}}$	Depreciation	126,363
	Directors' Fees	24,000
۰	Donations	8,489
$\blacksquare$	General Expenses	26,666
	Insurance	12,556
$\overline{\phantom{0}}$	Patents & Legals	20,836
$\overline{\phantom{a}}$	Light & Power	17,961
٠	Motor Vehicle Expenses	44,479
۰	Payroll Tax	30,993
-	Postage & Stationery	25,733
÷,	Protective Clothing	5,820
w	Rates & Taxes	3,574
٠	Rent	10,406
	Repairs & Maintenance	33,694
$\blacksquare$	Staff Training & Welfare	26,137
÷	Subscriptions & Licences	2,496
$\sim$	Superannuation Contributions	89,794
	Telephone	61,631
٠	Tool Replacement	64
	Travelling Expenses	38,709
$\ddot{\phantom{0}}$	Wages	1,015,518
	Waste Disposal	1,779
	Workcover	30,389
			1,742,990

PROFIT (LOSS) FROM ORDINARY

$\hat{\boldsymbol{\beta}}$

$\overline{\phantom{a}}$

• ACTIVITIES BEFORE INCOME TAX

2,761,136

$\bar{z}$

The accompanying notes form part of these financial statements.

$\mathcal{A}$

the second control of the company of the

TRADING, PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30TH JUNE 2003

Last Year		This Year
÷.	Income Tax Expense	828.341
w	PROFIT (LOSS) FROM ORDINARYACTIVITIES AFTER INCOME TAXRetained Profits - Beginning of	1,932,795
817,176	Year	1,357.351
817,176		3,290,146
650,000	OTHER APPROPRIATIONS. Dividend Paíd	1,450,000
650,000		1,450,000
$167.176	UNAPPROPRIATED PROFIT	$1,840,146

The accompanying notes form part of these financial statements.

J.

$\mathcal{A}^{\text{max}}_{\text{max}}$

BALANCE SHEET AS AT 30TH JUNE 2003

Last Year			This Year
100,0001,357,351	SHARE CAPITAL AND RESERVES100000 Ordinary Shares of $1Unappropriated Profit			100,0001,840,146
$1,457,351	TOTAL SHARE CAPITAL ANDRESERVES			$1,940,146
	Represented by:
113	CURRENT ASSETSPetty Cash on Hand		304
	Credit Card		6,951
1,763,061	Trade Debtors		2,289,307
	CBA Deposit		200,000
	Bendigo Bank Deposit		1,718
	29,235 Loan - J. Herdman
	642,863 Stock on Hand		859,931
92,892	Input Tax Credits		142,169
2,528,164				3,500.380
	FIXED ASSETS
33,304	Building & Improvements at Cost
57,000	Land - Baw Baw Shire		57,000
284,080	Motor Vehicles at Cost	429,780
100,591	Less: Accumulated Depreciation	101,226
183,489			328,554
466,302130,624	Plant and Equipment at costLess: Accumulated Depreciation	689,222191,417
335,678			497,805
54,485	Pooled Assets	68,665
42,610	Less: Accumulated Depreciation	49,849
11,675			18,816
621,146				902,175
	INTANGIBLE ASSETS
95080,000	Preliminary Expenses at CostTechnology and Know How		95080,000
	Patent - Automotive Safety
53,587	Engineering		49,954
134,537				130,904
3,283,847	TOTAL ASSETS			4,533,459

$\mathcal{L}^{\text{max}}{\text{max}}$ and $\mathcal{L}^{\text{max}}{\text{max}}$

$\sim$

BALANCE SHEET AS AT 30TH JUNE 2003

	Last Year
--	-----------

$\bar{z}$

$\bar{t}$

÷.

This Year

The commission of the commission of the com-

$1,457,351	NET ASSETS		$1,940,146
1,826,496	TOTAL LIABILITIES		2,593,313
210,782			276,187
23,405	Loan - D. Hotchkin
70,217	Loan - R. & G. Finance Pty. Ltd.
	(9,198) Less: Unexpired Hire Charges	(24, 151)
126,358	Hire Purchase Creditor	299,338
1,615,714	NON-CURRENT LIABILITIES		2,318,126
	Prepaid Income Received	461,441
46,920	Company Tax Deferral	32,260
306.910	Prepaid GST ReceivedProvision for Income Tax	32,88278,129
96.801	GST Payable	170.745
32,955	Other Creditors	31,485
492,835	Trade Creditors	1,154,542
14,970	Sundry Creditor - PAYG	26,631
	BAS Creditor Balance	306.894
	Directors Fees Payable	1.500
624,323	Bank Overdraft - C.B.A.	21,617
	CURRENT LIABILITIES

The accompanying notes form part of these financial statements.

$\mathcal{L}_{\mathcal{A}}$

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2003

Statement of Significant Accounting Policies $\mathbf{I}$

This financial report is a special purpose financial report prepared for use by directors and members of the company. The directors have determined that the company is not a reporting entity.

The financial report has been prepared in accordance with the requirements of the following Australian Accounting Standards:

• Measurement and Presentation of Inventories in the Context of AAS 2: the Historical Cost System
• $AAS 4:$ Depreciation of Non-Current Assets
• $AAS 5:$ Materiality

$\mathbb{R}^2$

Events Occurring after Reporting Date AAS 8:

No other Australian Accounting Standards, Urgent Issues Group Consensus View or other authoritative pronouncements of the Australian Accounting Standards Board have been applied.

The financial report is prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets.

The following specific accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this financial report:

Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first in first out basis and include direct materials, direct labour and an appropriate proportion of variable and fixed overhead expanses.

Property, Plant and Equipment

Property, plant and equipment are carried at cost or independent valuation.

All assets, excluding freehold land and buildings are depreciated over their useful lives to the company.

Intangibles

Goodwill

Goodwill is initially recorded at the amount by which the purchase price for a business exceeds the fair value attributed to its net tangible assets at the date of acquisition. Purchased goodwill is amortised on a straight line basis over the period of 20 years. The balance is reviewed annually and any balance representing future benefits considered unlikely to be realised are written off.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2003

$\epsilon$

$\mathbb{R}^2$

Employee Entitlements

Contributions are made to an employee superannuation fund and are charged as expenses when incurred.

. . . . .

$\sim$

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2003

		2003$	2002$
$\overline{2}$	Receivables
	CURRENT
	Trade DebtorsLoan - J. Herdman	2,289,307	1,763,06129,235
		2,289,307	1,792,296
з	Inventories
	CURRENT
	Stock on Hand	859,931	642,863
4	Plant & Equipment
	Motor Vehicles at Cost	429,780	284,080
	Less: Accumulated Depreciation	101,226	100,591
		328,554	183,489
	Plant and Equipment at cost	689,222	466,302
	Less: Accumulated Depreciation	191,417	130,624
		497,805	335,678
	Pooled Assets	68,665	54,485
	Less: Accumulated Depreciation	49,849	42,810
		18,816	11,675
	Total plant & equipment	845,175	530,842
5	Intangible Assets
	Patent - Automotive Safety
	Engineering	49,954	53,587
	Preliminary Expenses at Cost	950	950
	Technology and Know How	80,000	80,000
		130,904	134,537

$\mathcal{L}^{\text{max}}{\text{max}}$ , $\mathcal{L}^{\text{max}}{\text{max}}$

$\mathcal{A}^{\pm}$

$\sim$

SAFEROADS PTY LTD A.B.N. 69 057 357 801

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2003

		Note	2003$	2002S
6	Retained Profits
	Retained profits (accumulated
	losses) at the beginning of the
	financial vear		1,357,351	812,376
	Net profit attributable to members
	of the Company		1.932.795	1.194,975
	Dividends provided for or paid		1,450,000	650,000
	Retained profits (Accumulated losses)		1,840,146	1,357,351
	at the end of the financial year

$\sim 10^{-10}$

$\sim$

$\sim$ $\sim$

SAFEROADS PTY, LTD. A.B.N. 067 357 801

COMPILATION REPORT

TO SAFEROADS PTY, LTD.

Scope

On the basis of information provided by the directors of Saferoads Pty, Ltd., we have compiled in accordance with APS 9: Statement on Compilation of Financial Reports the following special purpose financial report of Saferoads Pty. Ltd. for the period ended 30th June 2003, as set out in the attached Profit and Loss Statement, Balance Sheet, Notes to Financial Statements and Directors' Declaration.

The specific purpose for which the special purpose financial report has been prepared is set out in Note 1. The extent to which Accounting Standards and other mandatory professional reporting requirements have or have not been adopted in the preparation of the special purpose financial report is set out in Note 1.

The directors are solely responsible for the information contained in the special purpose financial report and have determined that the accounting policies used are consistent with the financial reporting requirements of Saferoads Pty. Ltd.'s constitution and are appropriate to meet the needs of the directors and members of the company.

Our procedures use accounting expertise to collect, classify and summarise the financial information, which the directors provided into a financial report. Our procedures do not include verification or validation procedures. No audit or review has been performed and accordingly no assurance is expressed.

To the extent permitted by law, we do not accept liability for any loss or damage which any person, other than the company, may suffer arising from any negligence on our part. No person should rely on the special purpose financial report without having an audit or review conducted.

The special purpose financial report was prepared for the benefit of the director(s) and members of Saferoads Pty. Ltd. and the purpose identified above. We do not accept responsibility to any other person for the contents of the special purpose financial report.

Name of Firm: Smith McCarthy

Name of Partner:

. . . . . . . . . . . . . . . . . . . Duncan F. Smith

Address:

Dated this day of