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STREAMPLAY STUDIO LIMITED Interim / Quarterly Report 2010
65841_rns_2010-03-15_e71ae1e3-cf7f-4b9c-a226-17caa6f746b8.pdf
Interim / Quarterly Report
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ABN 31 004 766 376 and Controlled Entities
FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2009
CONTENTS
| CORPORATE DIRECTORY | 1 |
|---|---|
| DIRECTORS' REPORT | 3 |
| AUDITOR'S INDEPENDENCE DECLARATION | 4 |
| CONDENSED STATEMENT OF COMPREHENSIVE INCOMEFOR THE HALF YEAR ENDED 31 DECEMBER 2009 | 5 |
| CONDENSED STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2009 | 6 |
| CONDENSED STATEMENT OF CHANGES IN EQUITYFOR THE HALF YEAR ENDED 31 DECEMBER 2009 | 7 |
| CONDENSED STATEMENT OF CASH FLOWSFOR THE HALF YEAR ENDED 31 DECEMBER 2009 | 8 |
| NOTES TO THE FINANCIAL REPORTFOR THE HALF YEAR ENDED 31 DECEMBER 2009 | 9 |
| DIRECTORS' DECLARATION | 14 |
| INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF GIPPSLAND LIMITED | 15 |
CORPORATE DIRECTORY
| DIRECTORS | Ian Jeffrey Gandel – Non-Executive ChairmanRobert John (Jack) Telford – Chief Executive OfficerJon Starink – Executive DirectorJohn Stuart Ferguson Dunlop – Non-Executive DirectorJohn Damian Kenny - Non-Executive Director | |||
|---|---|---|---|---|
| COMPANY SECRETARY | Rowan St John Caren | |||
| REGISTERED OFFICE | 207 Stirling HighwayClaremont WA 6010Australia | |||
| POSTAL ADDRESS | PO Box 352Nedlands WA 6909Australia | |||
| TELEPHONE | +61 (0)8 9340 6000 | |||
| FACSIMILE | +61 (0)8 9340 6060 | |||
| [email protected] | ||||
| WEBSITE | www.gippslandltd.com | |||
| AUDITORS | PKF Chartered Accountants & Business AdvisorsLevel 7, BGC Centre28 The EsplanadePerth WA 6000Australia | |||
| SOLICITORS | Blakiston and Crabb1202 Hay StreetWest Perth WA 6005Australia | Trowers & Hamlins3rd Floor, 1 El Gabalaya StreetZamalek, CairoArab Republic of Egypt | ||
| CobbettsShip Canal House, King StreetManchester M2 4WBUnited Kingdom | ||||
| SHARE REGISTRY | Security Transfer Registrars Pty LtdSuite 1, Alexandrea House770 Canning HwyApplecross WA 6153Australia | PO Box 535Applecross WA 6953Australia | ||
| Website: www.securitytransfer.com.au |
CORPORATE DIRECTORY (cont)
| AUSTRALIAN SECURITIES EXCHANGE | The Company's securities are quoted on the official list of the AustralianSecurities Exchange (ASX Limited), the home exchange being:ASX Limited2 The EsplanadePerth WA 6000Australia |
|---|---|
| ASX CODE | GIP |
| FRANKFURT STOCK EXCHANGE | The Company's securities are quoted on the Frankfurt Stock Exchange;Neue Börsenstrasse 160487 Frankfurt / MainGermany |
| FSE – CODE | GIX |
DIRECTORS' REPORT
Your directors submit the financial report for the half year ended 31 December 2009.
Directors
The names of directors who held office during or since the end of the half-year:
Mr Ian J Gandel Mr Robert J Telford Mr Jon Starink Mr John D Kenny Mr John SF Dunlop
Review of Operations
The consolidated operating loss after tax for the half year was $1,332,236 (2008 – loss of $1,570,986).
The principal activities of the economic entity during the half-year were the exploration and development of commercially and economically viable mineral resources. The primary focus continued to be on the development of the Abu Dabbab tantalite, tin and feldspar project in Egypt in which both Gippsland and the Egyptian Government each have a 50% economic interest.
The Company is working towards securing project finance for the development and construction of the Abu Dabbab project in Egypt.
The Company applied for and was granted three prospecting licences in Eritrea covering 300 km2 of ground prospective for both VMS mineralisation and structurally controlled gold mineralisation. Gippsland completed a reconnaissance drainage geochemical survey over the tenements in November 2009. Anomalous results for gold, copper and zinc were recorded from all of the three 100 km2 Prospecting Licences.
Corporately, during the half year;
- ' Abbotsleigh Pty Limited, a company associated with Chairman Mr Ian Gandel, converted an $800,000 loan into shares at a conversion price of one cent/per share. A total of 80,000,000 shares were issued pursuant to the conversion;
- ' Gippsland completed a rights issue to shareholders pursuant to which 121,029,937 shares were issued at an issue price of 3.2 cents/share raising $3.87 million;
- ' Gippsland completed a placement to European institutional investors of 15,625,000 shares at an issue price of 3.2 cents/ share raising $500,000; and
- ' Gippsland repaid interest free loans advanced by directors totalling $300,000.
Auditor's Declaration
The lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 4 for the half-year ended 31 December 2009.
This report is signed in accordance with a resolution of the Board of Directors.
R J TELFORD DIRECTOR Dated this 16th day of March 2010
AUDITOR'S INDEPENDENCE DECLARATION
As lead auditor for the review of Gippsland Limited for the half year ended 31 December 2009, I declare that to the best of my knowledge and belief there have been:
- (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
- (b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Gippsland Limited and the entities it controlled during the half year.
PKF Chartered Accountants
Neil Smith Partner
Dated in Perth, Western Australia on this 16th day of March 2010.
Tel: 61 8 9278 2222 | Fax: 61 8 9278 2200 | www.pkf.com.au West Australian Partnership | ABN 39 542 778 278 Level 7, BGC Centre | 28 The Esplanade | Perth | Western Australia 6000 | Australia PO Box Z5066 | St Georges Terrace | Perth | Western Australia 6831
PKF Perth is a member of the PKF International Limited network of legally independent member firms. PKF Perth is also a member of PKF Australia Limited, a national network of legally independent firms each trading as PKF. PKF Perth does not accept responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2009
| Note | Consolidated | |||
|---|---|---|---|---|
| 31 December2009$ | 31 December2008$ | |||
| Finance income | 20,955 | 10,097 | ||
| Other income | 1,113 | 13,010 | ||
| Total income | 22,068 | 23,107 | ||
| Management and employee expenses | (622,229) | (679,916) | ||
| Exploration expenses | (1,163) | - | ||
| Foreign exchange gains/(losses) | 6,845 | (94,270) | ||
| Depreciation expense | (21,519) | (27,946) | ||
| Impairment of deferred exploration expenditure | (1,993) | (29,873) | ||
| Finance costs | (20,795) | - | ||
| Share based payment expense | (181,000) | - | ||
| Administration expense | (512,450) | (762,088) | ||
| Total expenses | (1,354,304) | (1,594,093) | ||
| Loss before income tax | (1,332,236) | (1,570,986) | ||
| Income tax expense | - | - | ||
| Loss after income tax | (1,332,236) | (1,570,986) | ||
| Other comprehensive incomeForeign currency translation | (500,962) | 1,136,568 | ||
| Total other comprehensive income | (500,962) | 1,136,568 | ||
| Total comprehensive income/(loss) for the period | (1,833,198) | (434,418) | ||
| Profit/(loss) is attributable to:Members of the parentNon-controlling interest | (1,332,236)- | (1,570,986)- | ||
| Total comprehensive income/(loss) is attributable to:Members of the parentNon-controlling interest | (1,833,198)- | (434,418)- | ||
| Earnings per shareBasic profit (loss) (cents per share)Diluted profit (loss) (cents per share) | (0.30)(0.30) | (0.50)(0.50) |
CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2009
| Consolidated | |||
|---|---|---|---|
| Note | 31 December2009$ | 30 June2009$ | |
| CURRENT ASSETSCash and cash equivalentsTrade and other receivablesOther current assets | 2,451,12032,10933,772 | 114,12731,70758,752 | |
| TOTAL CURRENT ASSETS | 2,517,001 | 204,586 | |
| NON CURRENT ASSETSProperty, plant and equipmentDeferred exploration expenditure | 139,8144,043,992 | 168,3404,422,641 | |
| TOTAL NON CURRENT ASSETS | 4,183,806 | 4,590,981 | |
| TOTAL ASSETS | 6,700,807 | 4,795,567 | |
| CURRENT LIABILITIESTrade and other payablesOther financial liabilitiesShort term provisions | 3 | 446,410-16,995 | 688,7131,100,00020,398 |
| TOTAL CURRENT LIABILITIES | 463,405 | 1,809,111 | |
| TOTAL NON-CURRENT LIABILITIES | - | - | |
| TOTAL LIABILITIES | 463,405 | 1,809,111 | |
| NET ASSETS | 6,237,402 | 2,986,456 | |
| EQUITYIssued capitalAccumulated lossesOther reserves | 4 | 35,581,715(29,741,060)396,747 | 30,678,570(28,408,823)716,709 |
| TOTAL EQUITY | 6,237,402 | 2,986,456 |
CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2009
| CONSOLIDATED | Share Capital- Ordinary | AccumulatedLosses | OtherReserves | Total |
|---|---|---|---|---|
| Balance at 1 July 2008 | 29,550,495 | (25,657,472) | 241,075 | 4,134,098 |
| Currency translation differences | - | - | 1,136,568 | 1,136,568 |
| Loss for the period | - | (1,570,986) | - | (1,570,986) |
| Total comprehensive income for the period | - | (1,570,986) | 1,136,568 | (434,418) |
| Transactions with owners in their capacity asowners | ||||
| Option Reserve on recognition of issue of unlistedoptions | - | - | 17,000 | 17,000 |
| Shares issued during the half year | 1,028,075 | - | - | 1,028,075 |
| Balance at 31 December 2008 | 30,578,570 | (27,228,458) | 1,394,643 | 4,744,755 |
| Balance at 1 July 2009 | 30,678,570 | (28,408,824) | 716,709 | 2,986,455 |
| Currency translation differences | - | - | (500,962) | (500,962) |
| Loss for the period | - | (1,332,236) | - | (1,332,236) |
| Total comprehensive income for the period | - | (1,332,236) | (500,962) | (1,833,198) |
| Transactions with owners in their capacity asowners | ||||
| Option Reserve on recognition of issue of unlistedoptions | - | - | 181,000 | 181,000 |
| Conversion of convertible notes | 800,000 | - | - | 800,000 |
| Shares issued during the half year | 4,372,958 | - | - | 4,372,958 |
| Share issue costs | (269,813) | - | - | (269,813) |
| Balance at 31 December 2009 | 35,581,715 | (29,741,060) | 396,747 | 6,237,402 |
CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2009
| Consolidated | |||
|---|---|---|---|
| 31 December2009$ | 31 December2008$ | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Interest receivedPayments to suppliers and employeesFinance costs paidOther income | 20,955(1,361,768)(20,795)1,113 | 10,097(1,559,359)-- | |
| Net cash flows from/(used in) operating activities | (1,360,495) | (1,549,262) | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Purchase of property, plant and equipmentPayments for project development | (4,442)(177,038) | (1,967)(920,778) | |
| Net cash flows from/(used in) investing activities | (181,480) | (922,745) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Net proceeds from share issuesPayment of share issue costsProceeds from Directors' LoansRepayment of Directors' Loans | 4,372,958(196,421)-(300,000) | 969,166-300,000- | |
| Net cash flows from/(used in) financing activities | 3,876,537 | 1,269,166 | |
| Net increase / (decrease) in cash and cashequivalents | 2,334,562 | (1,202,841) | |
| Effects of exchange rate changes on cash | 2,431 | 21,941 | |
| Cash and cash equivalents at beginning of period | 114,127 | 1,592,840 | |
| Cash and cash equivalents at end of period | 2,451,120 | 411,940 |
NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2009
NOTE 1. BASIS OF PREPARATION
The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.
The half-year financial report does not include all of the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.
It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2009 and any public announcements made by Gippsland Limited and its controlled entities during the half-year in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.
The half-year report does not include full disclosures of the type normally included in an annual financial report.
For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.
Reporting Basis and Conventions
The half-year report has been prepared on an accrual 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.
Going Concern
The consolidated entity has incurred a net loss of $1,332,236 and incurred negative cash flows from operating activities of $1,360,495. At 31 December 2009, the group had cash resources of $2,451,120 and a working capital surplus of $2,053,596.
The directors have prepared a cash flow forecast for the period ending 31 March 2011 which indicates that the current cash resources may not meet expected cash outgoings, without additional funding.
These conditions indicate a material uncertainty that may cast significant doubt about the consolidated entity's ability to continue as a going concern.
The ability of the consolidated entity to continue as a going concern is principally dependent upon raising additional capital to fund exploration and project development, funding the Abu Dabbab project, other commitments, other principal activities and working capital, and the directors have commenced work on the process of raising additional capital that is required within the next 12 month period.
Based on the cash flow forecasts and achieving future funding, the directors are satisfied that, the going concern basis of preparation is appropriate. The financial report has therefore been prepared on a going concern basis, which assumes continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
Should the consolidated entity be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements.
These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the consolidated entity be unable to continue as a going concern.
Accounting Policies
The accounting policies have been consistently applied by the entities in the consolidated entity and are consistent with those applied in the 30 June 2009 annual report, except for the adoption of amending standards mandatory for annual periods beginning on or after 1 July 2009, as noted below.
NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2009
New Accounting Standards and Interpretations
(a) Changes in Accounting Policies and Disclosures
The consolidated entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to their operations and are effective from 1 July 2009.
Significant new and revised standards and interpretations effective for the current financial reporting period that are relevant to the consolidated entity are:
- ' AASB 3 Business Combinations
- ' AASB 8 Operating Segments
- ' AASB 101 Presentation of Financial Statements
- ' AASB 127 Consolidated and Separate Financial Statements
The adoption of AASB 3 and AASB 127 will change the accounting policy of the group for future acquisitions and changes in ownership interests. These standards are applied prospectively and had no material impact on prior business combinations.
AASB 8 has replaced AASB 114 Segment Reporting upon its effective date. The Group concluded that the operating segments determined in accordance with AASB 8 are the same as the business segments previously identified under AASB 114. A narrative description has been made in the notes to the financial report.
The revised AASB 101 separates owner and non-owner changes in equity. As a consequence the statement of comprehensive income has been presented by the consolidated entity and related disclosures have been made in the half year financial report.
(b) Accounting Standards and Interpretations issued but not yet effective.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been adopted by the consolidated entity for the half year ended 31 December 2009.
NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2009
NOTE 2: OPERATING SEGMENT
(a) Industry segments
The Group operates predominantly in the mining and exploration industry. The Group's primary reporting format is business segments and its secondary format is geographical segments.
The operating businesses are organised and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Transfer prices between business segments are set at an arms length basis in a manner similar to transactions with third parties.
(b) Business segments
The following tables present revenue and profit information and certain asset and liability information regarding business segments for the periods ended 31 December 2009 and 2008.
| Continuing Operations | TotalOperations | |||
|---|---|---|---|---|
| Tantalum$ | Gold$ | Corporate$ | $ | |
| Period ended 31 December 2009 | ||||
| RevenueOther revenues from external customersInter-segment transactions | -- | 1- | 22,067- | 22,068- |
| Total segment revenueInter-segment eliminationTotal consolidated revenue | - | 1 | 22,067 | 22,068-22,068 |
| Result | ||||
| Segment result(Loss) before income tax and minority interestIncome tax expense | (314,329) | (75,860) | (942,047) | (1,332,236)(1,332,236)- |
| Net (loss) for the year | (1,332,236) | |||
| Assets and liabilitiesSegment assetsTotal assets | 3,976,836 | 233,253 | 2,490,718 | 6,700,8076,700,807 |
| Continuing Operations | TotalOperations | |||
| Tantalum$ | Gold$ | Corporate$ | $ | |
| Period ended 31 December 2008 | ||||
| Revenue | ||||
| Other revenues from external customersInter-segment salesTotal segment revenue | 545- | 11,422- | 11,140- | 23,107- |
| 545 | 11,422 | 11,140 | 23,107 | |
| Inter-segment eliminationTotal consolidated revenue | -23,107 | |||
| ResultSegment result | (323,354) | (101,187) | (1,146,445) | 1,570,986 |
| (Loss) before income tax and minority interestIncome tax expense | 1,570,986- | |||
| Net (loss) for the year | 1,570,986 | |||
| Assets and liabilitiesSegment assets | 5,072,561 | 169,319 | 530,118 | 5,771,998 |
| Total assets | 5,771,998 |
NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2009
NOTE 3: OTHER FINANCIAL LIABILITIES
In December 2008, Directors' Loans to the value of $300,000 were made to the Company. In July and August 2009, additional Directors' Loans to the value of $150,000 were made to the Company. All Directors' Loans have been repaid in full during the period. The loans were interest free and unsecured.
During the year ended 30 June 2009, a convertible note for $800,000 was issued by the Company. In August 2009, the convertible note was converted into 80,000,000 shares in the Company. Interest was payable on the convertible note up to the date of conversion at a rate of 10% pa.
NOTE 4: CONTRIBUTED EQUITY
| 31 December2009$ | 31 December2009Number | 30 June2009$ | 30 June2009Number | |
|---|---|---|---|---|
| Issued capital:544,634,716 (June 2009: | ||||
| 327,979,779) fully paid ordinary | ||||
| shares | 35,581,715 | 544,634,716 | 30,678,570 | 327,979,779 |
| Movement | ||||
| Opening Balance at 1 July 2009 | 30,678,570 | 327,979,779 | ||
| Shares issued during the period | ||||
| Share placement | 500,000 | 15,625,000 | ||
| Conversion of convertible note | 800,000 | 80,000,000 | ||
| Rights issue | 3,872,958 | 121,029,937 | ||
| Share issue costs | (269,813) | |||
| Closing balance at 31 December | ||||
| 2009 | 35,581,715 | 544,634,716 | ||
| Options | ||||
| No of Options | ||||
| Opening balance at 1July 2009 | 46,000,000 | |||
| Less: Exercise of options during | ||||
| the period | - | |||
| Plus: Options issued during the | ||||
| period | 10,000,000 | |||
| Closing balance at 31 December | ||||
| 2009 | 56,000,000 |
As at 31 December 2009 the economic entity had the following options on issue:
(i) 25,000,000 unlisted options exercisable at 13.5 cents each by 26 May 2012.
(ii) 4,000,000 unlisted options exercisable at 6.65 UK pence each by 15 December 2011.
(iii) 17,000,000 unlisted options exercisable at 15.0 cents each by 31 May 2012.
(iv) 10,000,000 unlisted options exercisable at 8.0 cents each by 14 December 2011.
NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2009
NOTE 5: COMMITMENTS AND CONTINGENCIES
Operating lease commitments - Group as lessee
The Group has entered into commercial leases for office accommodation in Perth, Australia and Cairo, Egypt.
Perth Office Lease
The property lease is a non-cancellable lease with a five year term (expiring in October 2011), with rent payable monthly in advance. Contingent rental provisions within the lease agreement require the minimum lease payments shall be increased by the lower of CPI or 5% per annum. Lease payments for the next 12 month period to 31 March 2011 are estimated to be $136,000. An option exists to renew the lease at the end of the five year term for an additional five years.
Cairo Office Lease
The property lease is a non-cancellable lease with a two year term, with rent payable monthly in advance. Lease payments for the next 12 month period to 31 March 2011 are estimated to be $25,000.
Bank Guarantee
A subsidiary of the Group has been required to provide a bank guarantee of US$30,000 to the General Authority for Investment and Free Zone in Egypt. The letter of guarantee is valid until 10 August 2010.
Minimum Exploration Expenditure – Eritrea
During September 2009, the Group entered into agreements in relation to the granting of prospecting rights and licences in Eritrea. Under the agreements, the minimum total expenditure for prospecting activities is US$180,000. As at 31 December 2009, the Group had expended approximately US$78,000 on prospecting activities in Eritrea. Accordingly, a further US$102,000 (approximately) will be required to be spent by the Group on prospecting activities in Eritrea.
NOTE 6: EVENTS SUBSEQUENT TO REPORTING DATE
On 19 January 2010, the Group's accountants in Egypt received notification that a subsidiary of the Group may be subject to withholding tax on non-Egyptian suppliers for the period prior to the subsidiary becoming a "free zone company" and exempt from withholding tax. The amount of withholding tax payable and the timing of any payment will be determined after an inspection by the Egyptian tax authority.
Since 31 December 2009, no other events have arisen that have materially affected the operations of the economic entity, the results of the economic entity or the state of affairs of the economic entity.
DIRECTORS' DECLARATION
The directors of Gippsland Limited declare that:
-
- The financial statements and notes, as set out on pages 5 to 13:
- a) comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001; and
- b) give a true and fair view of the consolidated entity's financial position as at 31 December 2009 and of its performance for the half-year ended on that date.
-
- In the directors' opinion there are reasonable grounds to believe that the consolidated entity 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 dated this 16th day of March 2010.
R.J. Telford Director
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF GIPPSLAND LIMITED AND ITS CONTROLLED ENTITIES
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Gippsland Limited and its controlled entities, which comprises the condensed statement of financial position as at 31 December 2009, and the condensed statement of comprehensive income statement, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at 31 December 2009 or from time to time during the half year ended on that date.
Directors' Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the company's financial position as at 31 December 2009 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Gippsland Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Tel: 61 8 9278 2222 | Fax: 61 8 9278 2200 | www.pkf.com.au West Australian Partnership | ABN 39 542 778 278 Level 7, BGC Centre | 28 The Esplanade | Perth | Western Australia 6000 | Australia PO Box Z5066 | St Georges Terrace | Perth | Western Australia 6831
PKF Perth is a member of the PKF International Limited network of legally independent member firms. PKF Perth is also a member of PKF Australia Limited, a national network of legally independent firms each trading as PKF. PKF Perth does not accept responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Gippsland Limited is not in accordance with the Corporations Act 2001 including:
- (a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2009 and of its performance for the half-year ended on that date; and
- (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.
Material Uncertainty Regarding Continuation as a Going Concern
Without qualifying our conclusion, we draw attention to Note 1 in the half-year financial report which indicates that the consolidated entity has incurred net losses of $1,332,236 for the period ended 31 December 2009. This condition, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity's ability to continue as a going concern and therefore, whether it will realise its assets and extinguish its liabilities in the ordinary course of business, and at amounts that differ from those stated in the financial statements.
Should the consolidated entity be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements.
PKF Chartered Accountants
Neil Smith Partner
Dated at Perth, Western Australia on this 16th day of March 2010.