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Aboriginal and Torres Strait Islander Commission Act - Aboriginal and Torres Strait Islander Commercial Development - Corporation - Report - 1992-93


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A N N UA L REPORT

1992-93

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ABORIG INAL A N D TORRES STRAIT ISLANDER

C O M M E R C IA L DEVELOPMENT C O R P O R A TIO N

* * * * * * * * * * * * * * * * *

A N N U A L REPORT

1992 - 1993

ISN 1036-0174

Published by the Aboriginal a n d Torres Strait Islander COMMERCIAL DEVELOPMENT CORPORATION C anberra 1993

Printed in Australia by Union Offset C o Pty Ltd, C anberra

At cover:

The first ore being m ined on Batm an Ridge a t th e M ount Todd gold mine near Katherine in the Northern Territory, as part o f c o n tra c t mining services being provided by a Joint venture In w hich the C orporation a n d local Aboriginal traditional owners e a c h hold a 25% interest.

CONTENTS Page

CHAIRPERSON’S OVERVIEW 5

CORPORATE PROFILE

* Enabling legislation 8

* Responsible Minister 8

* Role and Objectives 8

* Location 9

* Information 9

* Controlled and Associated Entities 10

CORPORATE MANAGEMENT AND SUPPORT

* Board of Directors 11

" Audit Committee 15

* Staffing 16

* External Service Providers 19

* Association with ATSIC 19

PROGRAM ACTIVITIES 20

REVIEW OF FINANCIAL YEAR’S OPERATIONS

* Financial Performance 24

* Performance Against Objectives

INDIVIDUAL INVESTMENT SUMMARIES 30

OUTLOOK FOR 1993-94 42

AUDITED FINANCIAL STATEMENTS 45

CHAIRPERSON’S OVERVIEW

1992/93 was an exciting and significant year in the development of the Corporation, in particular seeing the approval of seven major investments, five of which represented involvement in entirely new areas of activity not previously undertaken by the Corporation or other Aboriginal and Torres Strait Islander interests.

The year also saw the effective completion of the refurbishment of the Corporation's commercial and retail centre, Bonner House, located at W oden in the

Australian Capital Territory. This refurbishment, completed at a cost of some $9.0 million, has seen what was a relatively

run-down building acquired by t h e C o r p o r a t i o n a t its

establishment being transformed into a modern and expanded commercial complex.

Although not directly involved in the current native land title debate, the Corporation's activities during 1992/93 have contributed to this important issue by demonstrating that commercially based solutions involving local

Aboriginal groups and this Corporation can provide a means of achieving a mutually rewarding win:win situation for all parties involved in the commercial utilisation of Aboriginal-related land areas. In particular, in 1992/93 the Corporation's involvement in facilitating a contract mining joint venture with the local Aboriginal traditional owners at Katherine in the

Northern Territory, the Jawoyn Association, has received very positive support and recognition from all sectors in providing a good model that could be relevant in other situations and locations. Similarly, the Corporation's investment in an association with the Henry Walker Group will provide a strategic alliance, allowing other commercial land-based opportunities to be targeted where mining or civil works activities impact

upon such land.

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New project investments approved by the Board of Directors during the year included activity in the areas of oyster farming, tourism, contract mining, manufacturing and property. Information on these new projects and the substantial development occurring on existing projects are detailed elsewhere in the Annual Report, and demonstrate the diverse range of investments and involvement by Aboriginal and Torres Strait Islander peoples that are being developed and implemented by the Corporation.

As at 30 June 1993, the total value of investments either approved or being actively evaluated associated with the Northern Territory reached a level greater than that occurring in other areas of Australia. Emphasis will be placed on increasing investment in other States and Territories, in order to achieve a more balanced and equitable spread of investments.

The financial results of the group (Economic Entity) for the year indicate that a net operating profit after extraordinary items and income tax of $423,623 was achieved. This is considered a satisfactory result, given the peculiar circumstances that arose during the year. In particular, interest rates continued to decline in 1992/93, significantly reducing income from the investment of the Corporation's cash resources. In addition, property income associated with Bonner House was reduced, as a result of both the inability to let areas of the building during the refurbishment and incentive costs incurred to re-tenant the property during the year. Both of these factors contributed significantly to the results achieved, but are not expected to provide the same influence in future years. The Board is currently budgeting for a net operating profit in excess of $2.0 million for the

1993/94 financial year.

During the year the Corporation attempted to lift its corporate profile and gain appropriate recognition as an independent statutory authority rather than being identified as a ‘division* of ATSIC, which continues to occur.

Presentations by Board members and staff at various Regional Council, community, industry meetings and conferences have helped in this regard. However, a lot of work still needs to be done, and a greater emphasis on public relations and positive media exposure is planned.

The 1992/93 financial year saw several changes occur in the composition of the Board of Directors and staff of the Corporation. During the year, three Directors either resigned or their term expired, and two new Directors were appointed. To those Directors who ceased with the Corporation and to the continuing and new Directors, I offer my sincere thanks and appreciation for their contributions during the year. Similarly, I wish to thank ail of the

Corporation's staff, both past and present, for their dedication and efforts to implement the Corporation's policies and strategies. Given that the staff of the Corporation did not exceed 11 people during 1992/93,1 believe, that the

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CORPORATE PROFILE

Enabling Legislation

The Aboriginal and Torres Strait Islander Commercial Development Corporation is a Statutory Authority established on 5 March 1990 under the Aboriginal and Torres Strait Islander Commission Act (1989) (the Act).

Responsible Minister

As a statutory authority within the Aboriginal and Torres Strait Islander Affairs portfolio, the Corporation is answerable to Government through the Minister for Aboriginal and Torres Strait Islander Affairs and Minister assisting the Prime Minister on Aboriginal Reconciliation, the Hon Robert Tickner MR.

Under the Act, the Minister appoints the Board of Directors but cannot direct the Corporation. In addition, the Minister may seek information on the Corporation's activities and request the Corporation to change its Corporate Plan.

Role and Objectives of the Corporation

The Corporation assists and enhances Aboriginal and Torres Strait Islander economic advancement and primarily undertakes this through facilitating Aboriginal and Torres Strait Islander equity involvement in relatively large

scale, mainstream commercial ventures. Such involvement is normally on the basis of three-way joint venture arrangements involving a local Aboriginal or Torres Strait Islander representative body, the Corporation and another partner experienced in the particular commercial activity being undertaken.

The core aims that the Corporation strives for are:

development and growth of a commercial portfolio of investments to establish a capital asset base for the benefit of Aboriginal and Torres Strait Islander peoples;

through both joint venturing with Aboriginal and Torres Strait Islander communities and groups and providing facilitation and support services, promote economic self management, self determination and independence;

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- through investment activities, generate Aboriginal and Torres Strait 'Islander employment and provide long-term income generation capability and tangible assets backing to Aboriginal and Torres Strait Islander commercial venturers, either jointly with the Corporation or

alone;

- achieve Aboriginal and Torres Strait Islander participation in the control and management of mainstream commercial ventures which also provide significant benefits to them.

It should be stressed that the principal test for all investments, and the one that must be met in all cases, is economic viability based on commercial considerations and sound business principles (s. 148 of the ATSIC Act).

Location

In July 1992 the Corporation relocated its head office back into its own building, Bonner House, located at Woden in the Australian Capital Territory

During the year under review the Corporation also commenced the establishment of regional office facilities, in order to provide closer consultation with and support to Aboriginal and Torres Strait Islander commercial activities. This is initially being trialled in Alice Springs, and is staffed by an officer temporarily outposted to that location.

The regional officer, while based in Alice Springs, will be providing support to the Corporation's activities in areas of South Australia, Western Australia and Queensland, as well as the Northern Territory.

Information

Information on the Corporation's operations may be obtained by either writing to or telephoning the Head Office in Canberra or Regional Office in Alice Springs NT. Addresses are as follows:

ATSI CDC PO Box 38 WODEN ACT 2606

ATSI CDC PO Box 9120 ALICE SPRINGS NT 0871

PH: (06) 285 3031 FAX: (06) 285 2348

PH: (089)523 646 FAX: (089) 523 702

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Controlled and Associated Entities

The commercial operations of the Corporation are conducted directly, or through a number of controlled and associated entities. These are: %

Ownership/ Beneficial

Controlled Entitles and associated Trusts ACN Number Interest

CDC Nominees (Ceduna) Pty Ltd 060 123 631 100

Ceduna Joint Venture Participation Trust 100

CDC Nominees (Dandenong) Pty Ltd 060 123 560 100

Sunwood Joint Venture Participation Trust 100

CDC Nominees (Mt Todd) Pty Ltd 059 599 807 100

Mt Todd Joint Venture Participation Trust 100

CDC Nominees (Nltmlluk) Pty Ltd 059 599 512 100

Nltmlluk Joint Venture Participation Trust 100

Ngarrtndjerl Community Orchard Pty Ltd 053 725 934 100

Torres Strait Islander Investment Corp Pty Ltd 056 933 754 100

Torres Strait Islander Investment Trust 100

Associated Entitles and Trusts

Barra Base Holdings Pty Ltd 055 452 376 50

Barra Base Unit Trust 99

Carpentaria Shipping Services Pty Ltd 056 994 284 50

Dreamtime People (Australia) Pty Ltd (In Liquidation) 053 678 229 30

Dreamtime People (Holdings) Pty Ltd 053 498 632 30

Dreamtime People Holding Trust 30

Ownar Pty Ltd (now Marlba Maya) 058 419 659 50

Port Hedland Investment Trust 70

Milton Pty Ltd 052 225 000 50

Bumle Property Holding Trust 46

CAAMV Pty Ltd 056 579 992 50

CAAMV Unit Trust 67

"Henry Walker Group Ltd 007 710 483 8

Kings Canyon Nominees Pty Ltd 009 652 457 33

Kings Canyon (Watarrka) Resort Unit Trust 48

Not an associate per se due to lack o f any significant Influence. However, the Corporation Is represented on the Board.

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The Board of Directors of the Corporation during the year comprised:

Chairperson GATJIL DJERRKURA, OAM, of Nhulunbuy. Northern Territory. General Manager of Yirrkala Business Enterprises Pty Ltd (YBE). Mr Djerrkura has had a " f * long involvement in Aboriginal enterprise and

[ administration. As well as his work with YBE. he

has been Deputy Chairman of the Aboriginal s ,ψ ^ Development Commission, Regional Manager of

> the Department of Aboriginal Affairs (East Arnhem) y y and a Member of Aboriginal Hostels Limited and

" the NT Grants Commission. Mr Djerrkura's

appointment to the CDC Board continues until 7 April 1994.

Deputy Chairperson LOIS O’DONOGHUE, CBE, AM, of Quorn, South Australia, who is distinguished for her career in public administration, is the full-time Chairperson of the Aboriginal and Torres Strait Islander Commission; Member, Council for Aboriginal Reconciliation; and is a Member of various other bodies. Miss O'Donoghue was the first Aboriginal woman to be appointed as a Member of the Order of Australia (1977) and was appointed as a Commander of the British Empire in 1983. She was Australian of the Year in 1983. Miss O'Donoghue's appointment to the CDC Board continues until 7 April 1994.

MARY BOEK, born at Yass NSW, was previously employed as an Employment Development Officer with the Confederation of Australian Industry. Ms Boek is active in Aboriginal and Torres Strait Islander affairs and is recognised for her work in the Federal Government's Office of the Status of Women on the report on Aboriginal and Torres Strait Islander women "Women's Business’. Ms Boek has extensive experience in the private sector, having worked for the Bank of New South Wales and MLC Insurance.

She also worked for the Health Insurance

Commission. Ms Boek resigned from the CDC Board in January 1993 due to her family's relocation to Malaysia.

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WILLIAM (BILL) BROWN, OA, of Perth WA, Company Director. Mr Brown was formerly Executive Director of the Confederation of Western Australian Industry. He is currently a Director of Westralian Forest

Industries Limited, Ansett Airlines of Western Australia, and the State Government Insurance Commission (Western Australia) Mr Brown is a

member of the Overseas Relations Committee. WA Department of State Development. Mr Brown's term of appointment to the CDC Board was

completed on 8 October 1992.

SUE GORDON, AM, born at Belele Station, Meekatharra, Western Australia. Mrs Gordon was Commissioner for Aboriginal Planning in WA; one of the first five Commissioners on the Aboriginal and Torres Strait Islander Commission; and has had

extensive experience in administration and management in Aboriginal Affairs from 1975 to 1988 with traditional people and on National Committees'. Mrs Gordon has been a full time

Magistrate in the Perth Children's Court since July 1988. She was awarded an Order of Australia in 1993 for her commitment to Aboriginal people and community affairs. Mrs Gordon's appointment to the CDC Board continues until 7 April 1994.

DANA OBER, born at Saibai Island, Torres Strait, now of Townsville, Queensland. Mr Ober is working at the James Cook University to develop a curriculum in Torres Strait studies and has worked in various

public sector positions. Mr Ober was appointed to the CDC Board for a two year term commencing 28 January 1993.

PROFESSOR ROBERT GRAHAM (BOB) WALKER, of Sydney NSW is a Professor of Accounting at the University of New South Wales. Prior to taking up that appointment in 1978 he was employed at the

University of Sydney, and in public accounting. He has been Chairman and is currently Deputy Chairman of the Australian Shareholders Association Ltd. Professor Walker was appointed to the Board

for a two year term commencing 28 January 1993.

LAWRENCE JOHN (LAWRIE) WILLETT, of Canberra ACT. is the Managing Director of the Health Insurance Commission (Medicare and Medibank Private). He is also Chairman of Jupiters Limited and a Director of Commonwealth Funds

Management Limited. Mr Willett's appointment to the CDC Board continues until 30 November 1994.

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BRIAN JAMES WRIGHT, of Sydney NSW, has been General M anager o f the C om m onw ealth

Development Bank of Australia since January 1989. He has been with the Commonwealth Bank Group for 34 years and has served in a wide range of positions in Australia and overseas. Mr Wright is also a board member of Landcare Australia Ltd and of

Business in the Community Ltd. Mr Wright's appointment to the CDC Board continues until 21 February 1995.

ROD WILLIAMS, of Baryulgil NSW, as former Corporate and Exploration Consultant with Normandy Poseidon Limited in Adelaide, had the responsibility of writing Group policy and setting guidelines in relation to Aboriginal issues. Mr Williams started in Industrial Relations with the

Northern Territory Confederation of Industry and Commerce, representing employers. After completing a Bachelor of Business degree in Adelaide, he went into the financial field, working for National Mutual Funds Management in

Melbourne as a Resource Analyst for two years. Mr Williams resigned from the CDC Board in June 1993 to enable concentration on his professional career as a consultant specialising in Aboriginal issues.

Board Meetings

The Board met a total of 11 times in 1992/93.

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(vii) advise the Board regarding matters arising from reports or correspondence from the internal auditor and the Auditor- General, or from its own deliberations;

(viii) advise the board regarding delegations of authority within the Corporation;

(ix) review and, if considered appropriate, approve proposals involving transactions with related parties (including directors or staff of the Corporation; and

(x) undertake periodic reviews of past investment decisions.

3. The Audit Committee will meet three times per year or as deemed necessary.

4. Minutes will be kept of meetings of the Audit Committee, and copies of those minutes will be provided directly to members of the Board.

Staffing

Mr Christopher Foord ceased employment as General Manager of the Corporation on Ιό April 1993. Mr Foord provided a valuable contribution to the operations of the Corporation, and the Corporation's Board wishes him well on his return to Cairns.

From 17 April 1993, the position of General Manager was filled by Mr Brian Kimmings in an acting capacity, pending advertisement and permanent filling of the position. (NB: On 1 September 1993 Mr Kimmings was confirmed into the position for a two-year term.) Mr Kimmings had previously occupied the position of Financial Controller since November

1990.

Brian Kimmings, G eneral M a n a g e r of the C orporation.

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To strengthen the overall senior management and investment monitoring capabilities of the Corporation, Mr Bob Cox (a chartered accountant and Fellow of the Australian Institute of Company Directors, and formerly with Price Waterhouse) was appointed in May 1993. Mr Cox is the Corporation's Corporate Controller, and responsible for the financial and corporate

management of the investment portfolio and the Corporation.

As at 30 June 1993, the Corporation's total staffing establishment comprised 11 officers, of which 10 were based in Canberra and one further officer outposted to Alice Springs. During the year the Corporation's establishment increased by four positions above that existing at 1 July 1992.

Although the staffing resources available to the Corporation are relatively small, they are required to implement the Corporation's policies and strategies as well as undertake and administer the full range of activities of a Commonwealth statutory authority. Their commitment and dedication to the Corporation is acknowledged and appreciated by the Board of

Directors.

C orporation staff members V a l P r i c e - B e c k , B r u c e

B rid e c a k e a n d F ra n cln e

George

As part of the ongoing staff development and training support provided by the Corporation, three Aboriginal members of staff undertook major part­ time studies designed to assist in both their own personal career development and ability to contribute to the efficient workings of the Corporation. The courses of study included a Masters of Business Administration, studies for recognition as a Certified Practicing Accountant

and Certificate studies in office procedures.

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T h e C o r p o r a t i o n ' s

Receptionist, Dellse Freeman. D u r i n g 1 9 9 2 / 9 3 D e l i s e

com pleted a 12-month office procedures traineeship.

During the year the staff of the Corporation attended numerous formal meetings and conferences of Regional Councils and Aboriginal and Torres Strait Islander groups and organisations to outline the role and responsibilities of the Corporation as well as hold preliminary consultations on investment proposals. The Corporation was able to respond to in excess of 90% of such invitations received, and sees public relations, and particularly consultation with Aboriginal and Torres Strait Islander groups and organisations, as a very

important element in its operations and one for which additional resources will be provided in 1993/94.

Implementation of Industrial Democracy and Equal Employment Opportunity practices is an integral part of the Corporation's administration. In 1992/93 this was in part represented by a residential staff conference attended by all employees to discuss and improve the Corporation's mode of operation and administration procedures.

The Corporation's accounting staff: Bob Cox ACA and Christine Arnold ASCPA.

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PROGRAM ACTIVITIES

The purpose and function of the Corporation are set out under Sections 146-148 of the Aboriginal and Torres Strait Islander Commission Act 1989 and essentially require the Corporation to:

• assist and enhance Aboriginal and Torres Strait Islander

self-management and economic self-sufficiency,

' accumulate and use a substantial capital asset for the benefit of Aboriginal and Torres Strait Islander people, and

* engage in commercial activities.

Any activity undertaken by the Corporation in pursuit of these aims must meet the principal tests of economic viability based on commercial considerations and sound business principles.

The Board and staff have maintained the strict policy of commercial viability and appropriateness as being the prime consideration when assessing projects.

Investment projects approved in 1992/93 increased the total number of investments of the Corporation from seven to fourteen, representing an increased investment of some $9.7 million when fully implemented. In addition, the Corporation increased its investment in existing projects by a further $6.2 million.

As at 30 June 1993 the total project investment base of the Corporation, represented by the anticipated value of all approved investment projects, when implemented, totalled $33.05 million as indicated in Table 1.

A total capital base of $62.0 million is projected to be achievable by 30 June 1994, based on the existing and projected income of the Corporation. Taking that into account, and in line with the policy of the Corporation to seek an equitable geographical spread of investments, based on

population density, and a balanced portfolio of investments by activity categories, action is occurring to target areas not currently represented within the spread of investments anticipated in the Corporate Plan.

Table 2 compares and provides an indication of the extent to which the Corporation's current investment portfolio has achieved the longer term planned outcome based on activity.

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As part of the review of the Corporate Plan, scheduled to occur in 1993/94. the activity composition of the Corporation's investment portfolio will be reassessed to take account of changing opportunities and priorities, and commercial reality.

The Board is mindful of the need to achieve a balanced portfolio

incorporating an equitable spread of investments on both a State-by-State and activity basis. Particular effort is being m ade to address this goal.

The C orporation's Business Developm ent Officer, Noel Bridge

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TABLE 1

CORPORATION INVESTMENTS SUMMARY

Ownership Structure

CDC CDC Co-venturers

Project Description Investment A&TSI Other

NORTHERN TERRITORY

Mt Todd Gold Mine Contract Mining Joint venture with Jawoyn Assoc and Henry Walker Contracting to

provide mining services to owner

S2.42m 25% 25% 50%

Nltmlluk Gorge Tours

Joint venture with Jawoyn Assoc and Travel North for the operation of cruises and caravan/camping around at Katherine Gorge

$0.90m 25% 25% 50%

Borromundl Fishing Lodge - Bathurst Island

Joint Venture with the Bathurst Island community for operation of the Barra Base fishing resort

S0.30m 99% 1%

Kings Canyon Resort Joint venture with Centrecorp Aboriginal Corp. Ngurratjuta/Pmara Ntjarra. and Australian Frontier Hotels to develop and operate resort

$2.50m 47.7% 36.8% 15.5%

Peter Kittle Toyota & Mitsubishi - Alice Springs & Tennant Creek

Joint venture with Central Australian Aboriginal groups and former proprietors to operate motor vehicle dealerships and service centres

St.13m 33.3% 16.7% 50%

Northern Territory: Total 57.25m

SOUTH AUSTRALIA

Ceduna Clearwater Oysters Joint venture with TJutjunaku Worka l)uta and local grower for the

operation of oyster leases

$0.70m 25% 25% 50%

Ngarrlndjerl Community Orchard Operation of an almond and citrus orchard for the long-term benefit

of Gerard Community

S0.20m 100%

South Australia: Total 50.90m

VICTORIA

Sunwood Timber Joint venture with the Yuroke people and former proprietors for producing treated pine fence products

$0.90m 37.5% 12.5% 50%

Victoria: Total 50.90m

TABLE 2

COMPARISON OF INVESTMENT APPROVALS AS AT JUNE 1993 WITH CUMULATIVE JUNE 1994 NOTIONAL FORECAST

Property Pastoral Cash Invest Tourism Agriculture Entrepreneurial

£§3 Approved K >l Revised Budget

B A S E L IN E D A T A :

P roperty Pastoral Cash Invest Tourism Agriculture Entrepreneurial

TOTAL

Approvals: 6/93*

20.300.000 0

15.150.000 ** 3.700.000 900,000 8.150.000

48.200.000

Forecast: 6/94

22.300.000 6,200,000 5.600.000 9.300.000 6.200.000 12.400.000

62.000.000

* Comprises all approved projects as at 30 June 1993, some of which were implemented after that date.

** This represents the uncommitted cash investment held at 30 June 1993 that was not "committed" to finance approved investments at that date.

REVIEW OF FINANCIAL YEAR’S OPERATIONS 24

The Financial Statements forming part of the Corporation's 1992/93 Annual Report relate to the activities of the Corporation itself and its controlled entities (as detailed within the Corporate Summary section of the Annual Report) which, together, form the Economic Entity referred to in the

Finonciol Statements.

Financial Performance

As disclosed in the financial statements for the year ended 30 June 1993, the group (Economic Entity) generated dn operating profit before abnormal items of $762,500. During the year abnormal and extraordinary expenditure of $317,000 was incurred (1992 - $6,147,448), resulting in an operating profit

after extraordinary items and income tax of $423,623 (1992 - loss of $4,917,218).

Significant factors contributing to the operating result for the financial year 1992/93 comprise the following.

Interest on Investments

With a large proportion of the Corporation's current capital base

represented by cash reserves invested in secure cash management funds, fluctuations in interest rates significantly affect the return achieved thereon.

During 1992/93 "cash" interest rates declined from an average of 8.5% in 1991-1992 to an average of 5.25% for 1992-1993. The actual level of cash funds held under menagement by Commonwealth Funds Management Limited on behalf of the Corporation similarly declined from $22.6 million at the start of the year to $20.9 million at 30 June 1993 as funds were committed to project investments.

Other interest received by the Economic Entity related to income received from ossociated entities in respect of various short-term advances and loans provided.

Actual interest received in 1992/93 by the Economic Entity totalled $1,412,147 compared to $2,261,990 received in the prior year.

Diminution in Investment Carrying Value

As part of the process of preparation of the Corporation's financial statements, the Board of Directors gave particular attention to the Balance Sheet value at which the Corporation should record its investments.

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The situation arose with the Corporation's investment in the Kings Canyon Resort that, due to various factors, the Directors believed it prudent to write down this investment by $317,000.

Arising from the foregoing, the Corporation's financial statements incorporate a diminution in the carrying value of this investment of $317,000. Further details on this matter are provided at Note 12(viii) to the financial statements.

Bonner House

Rent received by the Corporation associated with its investment, Bonner House, totalled $446,259 in 1992/93 compared with $644,616 received in the previous year. This decline of some $200,000 arose due to the impact of the building refurbishment occurring, preventing leasing of space in the building, together with the need to provide the rent-free lease period incentives to attract new tenants.

Expenses to operate Bonner House during 1992/93 remained relatively static.

Project Revenue

1992/93 was the first year of the Corporation's operations in which significant project investment income receivable by the Corporation occurred, totalling $695,139 for the Economic Entity compared with $15,701 received in the previous year.

Major contributors to this revenue source comprised the Burnie K-Mart complex, Kittle Toyota (Alice Springs) and the Homestead complex in South Hedland WA.

Sales Revenue

Revenue from this source, together with the related orchard expenses disclosed in the Economic Entity financial statements related to the almond and citrus orchard operated by the Corporation's subsidiary, Ngarrindjeri Community Orchard Pty Ltd.

Overall, the financial results of the Economic Entity during 1992/93 in respect of its core income components and related direct expenses were satisfactory and on par with current commercial expectations and performance.

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With all joint venture arrangements put in place by the Corporation, executive management arrangements are structured in order to ensure that each equity partner, irrespective of their percentage share of ownership, participates in and has equal say and voting rights in the management of the venture. Similarly, joint venture arrangements are structured in order to ensure that Aboriginal and Torres Strait Islander participation through training and employment opportunities is maximised and implemented.

"(d) to secure Aboriginal and Torres Strait Islander participation in the ownership and control of companies engaged in activities that are likely to have a significant impact on Aboriginal or Torres Strait Islander interests"

Flowing on from objective (c), the Corporation promotes and structures its investments in order to enable the local Aboriginal and Torres Strait Islander partners to buy out the Corporation's interest on an appropriate basis. In doing so, the Corporation seeks to maximise local control and ownership at the earliest opportunity.

"(e) promoting the development of industries and other commercial and economic activities that are likely to have a beneficial impact on Aboriginal or Torres Strait Islander interests"

The Corporation continues to promote and seeks to identify suitable industries and commercial venture options that will have a beneficial impact upon Aboriginal and Torres Strait Islander interests. In doing so, the Corporation is particularly conscious of the need to ensure that, when any such developments are identified by it, subsequent implementation, if proceeded with, is done so as a community "owned* initiative, possibly arising from the options developed by the Corporation. The Corporation believes that it is very important to proceed on this basis so that the community relates to the project and does not merely endorse a development proposed by the Corporation.

The Corporation is particularly conscious of ensuring that Aboriginal and Torres Strait Islander groups identify with each investment project as being ‘their- business in which they have a meaningful association and sense of ownership.

The Corporation believes that it is successfully achieving this objective.

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"(0 to make specialist commercial expertise available to Aboriginal and Torres Strait Islander people engaged In commercial activities"

As part of the Corporation's activities addressing this objective, it provides bureau services to several Aboriginal organisations covering their accounting and statutory obligations associated with their involvement in various commercial projects in which the Corporation also participates.

Similarly, the Corporation is particularly conscious of the need to ensure that its Aboriginal and Torres Strait Islander partners are able to provide an effective contribution and participate in the executive management of the ventures with which they are specifically involved. In the early stages of such ventures, the local Aboriginal and Torres Strait Islander representatives

may not have the necessary skills and experience to undertake such executive management responsibilities and, in such circumstances, the Corporation provides appropriate support and advice.

During 1.992/93 the Corporation also commenced providing commercial expertise to Aboriginal organisations in situations where it was either inappropriate or unnecessary for the Corporation to consider any direct financial involvement, but where the organisation was in need of such

advice.

"(g) to facilitate, where appropriate, wider Aboriginal and Torres Strait Islander participating by bringing together divergent groups and individuals under various corporate umbrellas for the purpose of engaging In projects employing a larger capital base, and expanding beyond traditional boundaries into areas of commercial activity not

previously considered."

During 1992/93 the Corporation facilitated Aboriginal involvement in a number of commercial ventures employing a larger capital base and into areas of commercial activity not previously undertaken. The Corporation's strategic alliance with the Henry Walker Group and involvement with the Jawoyn Association to undertake major contract mining activities is indicative of the Corporation's commitment to the achievement of this objective. Similar initiatives implemented in the areas of boat tours operations and timber processing ventures approved during 1992/93 are further examples of the Corporation's performance within the parameters of this objective.

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•(h) to replace government subsidies with profits generated from Investments owned and controlled by Aboriginal and Torres Strait Islander Interests."

One of the key underlying objectives with all commercial investments with which the Corporation is involved is to generate distributable profits which participating Aboriginal and Torres Strait Islander groups can utilise as they wish in accordance with their objectives. One of the expected long-term

uses of such funds would be as the replacement of government subsidies; however, such use would be for the relevant organisations and government funding agencies to agree at the appropriate time. In the shorter term, profits accruing and/or payable to the equity partners in each investment project are normally needed to service a number of requirements including venture establishment costs, working capital, loan servicing and repayment,

and buyout of the Corporation's equity.

The Corporation is developing a series of performance indicators for 1993/94 onwards that will better enable it to report on its performance. As at 30 June 1993, such indicators were still being developed, but were expected to incorporate the following criteria:

* portfolio capital growth

* portfolio structure, diversity and balance (against Corporate Plan direction)

* investment leverage

* income returns (in aggregate and by industry segments)

* Aboriginal involvement and participation, including employment

* Aboriginal community impact and economic gain

" budget guideline compliance (against disaggregations of project evaluation and establishment, client services and project monitoring, and administrative activities)

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traffic will be utilising a new loop road linking Kings Canyon with the Western MacDonnell's road access to Alice Springs. The general outlook for the resort is very promising, and the joint venture partners are confident that the Resort will be a success.

(2) Ngarrindjeri Community Orchard Pty Ltd

The Corporation's investment in this venture at 30 June 1993 totalled $102,863 representing working capital provided to its controlled entity to operate the orchard.

Ngarrindjeri Community Orchard Pty Ltd is the wholly controlled entity of the Corporation. It leases and operates an almond and citrus orchard located adjacent to the Gerard Aboriginal Community near

Berri in South Australia.

The financial results of the venture for 1992/93 were very pleasing, with a record crop of 79 tonnes of almonds being harvested. Almond demand and prices in Australia remain firm, being linked to the world market and, with Australia being a net importer of almonds, the general outlook for the industry is seen as buoyant and optimistic.

Aboriginal involvement and benefit In the venture is achieved through a number of areas including employment, lease rental linked to gross proceeds of the orchard, involvement on a management

co-ordination committee, and interest receipts linked to long-term loan arrangements between the Council and the Company.

The general outlook for the orchard appears sound and has the capability of providing a good economic base for the Gerard community. The possibility of extending the orchard and establishing an Aboriginal trainee/employment project linked to the expanded orchard operations has been raised by the Corporation with the Gerard Council and is being pursued with the relevant bodies and agencies.

(3) Toyota and Mitsubishi Motor Vehicle Franchise

The joint venture, a motor vehicle dealership in Alice Springs with a branch in Tennant Creek, was established in 1992 between the Corporation, the existing proprietors of Kittle Toyota and an

organisation representing the Aboriginal interests in Alice Springs.

Distributions receivable by the Corporation in 1992/93 from this investment totalled $153,333 of which $133,333 was reinvested in the venture to finance working capital and new workshop facilities.

32 41

During the 1992/93 the company continued to trade satisfactorily, and a c h ie v e d results In

excess of the national trend in the motor

vehicle industry. The i n v e s t m e n t i s

p r o c e e d i n g

satisfactorily, and the partners are looking

forward to continued strong profits in 1993/94.

(4) Thursday Island Residential Housing Developm ent

During 1992/93 the Corporation, through a subsidiary entity, the Torres Strait Islander Investment Corporation Pty Ltd, purchased a former transmitter site on Thursday island previously operated by the Australian Overseas Telecommunications Corporation. The Corporation's aims in acquiring this site, which represented the only available residential land on Thursday Island, was to avoid the land

being acquired by speculative investors and to undertake a balanced commercial housing/land development that would particularly meet the needs and provide benefit to Torres Strait Islander people.

This development is now occurring, with the land having been re zo ne d a n d all

necessary approvals being in place to

c o m m e n c e

construction works. Stage 1 - provision of services to the land -

commenced in 1993 a n d th e o v e ra ll

project is proceeding satisfactorily.

Stage 1 of the roads and services n e a rin g c o m p le tio n on th e

Corporation's land developm ent on Thursday Island

33

(5) Shopping Centre Com plex - Burnie TAS

Ownership of this retail complex incorporating a Coles Supermarket, K-Mart store, and 12 specialty stores is held by the Corporation (46%) and a body representing six Tasmanian Aboriginal organisations and communities (54%).

The retail centre is on long-term leases to the Coles Myer group and generates an acceptable commercial return which in part enables the local Aboriginal body to service vendor finance provided when

the complex was acquired.

The Corporation's investment in this project as at 30 June 1993 was $3.0 million.

(6) Tourist/Fishing Lodge (Barra Base)

The Barra Base comprises a tourist fishing lodge located on Bathurst Island in the Northern Territory which is operated as a joint venture between the Corporation and the Tiwi Aboriginal Community. As at 30 June 1993, the Corporation had invested $300,000 in this venture.

The waters around Bathurst Island provide some of the best fishing, with the Lodge providing idyllic facilities for the fishing enthusiast. At 30 June 1993, the joint venture was operating the Lodge itself in place of a former lessee, and was trading profitably.

(7) Bonner House

The principal commercial investment held by the Corporation at this time consists of a retail and office complex located at Woden in the Australian Capital Territory known as Bonner House.

Bonner House was acquired by the Corporation on its establishment, as the property was transferred to it from the former Aboriginal Development Commission.

In 1990 the Corporation commenced planning for a major

refurbishment of the building in order to re-establish it as an attractive and commercially viable investment. This was commenced in 1992 and was effectively completed during 1992-93.

35

1992/93 Investments

During 1992/93 the Corporation approved participation in a total of seven commercial ventures representing a total investment of some $9.7 million.

These comprised:

(1) Homestead Office & Retail Complex - Pt Hedland WA

In March 1993 the Corporation, in association with the Port Hedland Regional Aboriginal Corporation (PHRAC), purchased a retail and office complex located at Port Hedland in Western Australia.

The local Aboriginal participation was arranged through a

combination of vendor finance and a loan provided by this

Corporation. As at 30 June 1993, the Corporation's equity investment and loan funding principal totalled $1.2 million.

The arrangement established between the Corporation and PHRAC provides for an investment that will bring long-term capital growth and income to the joint venture. PHRAC will eventually redeem the Corporation's share of equity in the venture and own the property outright.

The Homestead Complex represents an opportunity for the local Aboriginal people to establish an economic base from which to derive an income stream and allow for further investments in other commercial opportunities.

The Homestead Complex is well tenanted and provides a good commercial return to the owners.

(2) Sun wood Timber - Dandenong VIC

Following extensive consultation in 1992/93 with the Melbourne Aboriginal community, represented by the Yuroke Regional Council, agreement was reached for purchase of a 50% interest in a timber processing plant at Dandenong by the Corporation and Yuroke Investments Aboriginal Corporation (Melbourne VIC) . This joint venture, trading as Sunwood Timber, produces a variety of treated pine products, mainly fence palings and lattice, with markets in Victoria, New South Wales and Queensland.

The Yuroke equity involvement was arranged through the provision of vendor finance, with the Corporation investing $900,000 in respect of its own equity involvement.

36

Representatives of the Yuroke Investments Aboriginal Corporation (Faye Carter. W anda Braybrook and Ken Saunders) at the signing cerem ony establishing the Sunwood Timber joint venture.

Sunwood Timber represents another venture where Aboriginal and non-Aboriginal equity interests can work together as commercial partners and for the betterment of Australia. Industries such as

Sunwood Timber are both maximising the potential use of renewable natural resources within Australia, offsetting the need for Australia to

import similar products from overseas, and

creating a potential

e x p o r t i n d u s t r y .

S u n w o o d ' s

a c h ie v e m e n ts have

been recognised at the highest levels, including r e c e i v i n g i n d u s t r y

awards for value adding rural production and import replacement.

Finished packs of treated pine palings awaiting delivery to customers in Brisbane, Sydney and Melbourne.

37

In recent months major expansions into the NSW and QLD markets have meant that the company has been able to both significantly increase turnover and level out a degree of seasonality in the demand for timber products. By using up-to-date and very

specialised technology, this company is able to more efficiently produce the specific

products and hence

has been a b le to

command an increasing share of the treated

softwood market along the Eastern seaboard. The c o m p a n y has

signed contracts which will guarantee continuity of supply of the raw

product, ie pine logs, to the factory for the next 15 years.

State of the art technology c o u p le d with sound business principles gives Sunwood its winning edge.

(3) Nitmiluk (Katherine) Gorge Cruises

In May 1993 the Corporation entered into an agreement with the Jawoyn Association, which owns the Nitmiluk National Park, and a Katherine based tourism operator. Travel North, to provide conducted boat cruises on the Nitmiluk Gorge.

·,* . V"-··. .-A

39

Total investment approvals by the Corporation in this venture as at 30 June 1993 comprise the Corporation's own equity contribution through its subsidiary, CDC Nominees (Mt Todd) Pty Ltd, of $1,214 million and a similar loan to the Jawoyn Association for its equity contribution. The

agreement establishing the partnership was executed in March 1993, with the venture commencing in July 1993.

Benefits accruing to the Jawoyn Association from this venture include involvement in the control and management of a significant activity impacting upon their land, training and employment opportunities.

When structuring the joint venture, the Corporation also arranged for training and employment benefits to b e a v a i l a b l e t o

Aboriginals from parts of Australia outside of the

Northern Territory. With the agreement and support of the other joint venture

partners, up to one-third of training and employment opportunities for Aboriginal people will be so offered, enabling other groups to benefit.

and a share of the joint venture profits.

An Aboriginal trainee receives instruction in the art of operating one of the 85-tonne dum p trucks being utilised at the Mt Todd gold mine by the Mirrkworlk Joint Venture.

(5) Henry Walker Group Ltd

To enable the Corporation to nationally target appropriate

contracting opportunities occurring on Aboriginal land or land of significance to Aboriginal people it was considered appropriate to establish a strategic alliance with an experienced contracting firm. As a result, during 1992-93 the Corporation took up an interest in the

Henry Walker Group Ltd (HWG) which is a publicly listed company that specialises in the contract mining industry throughout Australia.

40

The investment with HWG is in the form of seven $500,000 convertible notes which becom e progressively convertible to ordinar/ shares after two years. The notes are secured by bank guarantees and pay an interest rate of 8%. In addition the Corporation's Chairperson, Mr Gatjil

Djerrkura, has taken up a seat on the Board of Directors of HWG and the Corporation has an option to joint venture with HWG on any contracting opportunities in which Aboriginal interests are affected.

The Corporation believes that the association with the Henry Walker Group is mutually beneficial and will allow Aboriginal interests to participate in major mine contracting opportunities on a national basis in association with a proven performer in that industry.

(6) Oyster Farm - Ceduna SA

In April 1993 the Corporation entered into a joint venture arrangement with the Tjutjunaku Worka Tjuta inc (TWT) and LK & CM Stott Pty Ltd to establish a 20 hectare oyster farm at Ceduna South Australia.

The investment includes provision of loan funding by the Corporation and lease sites contributed by TWT, thus providing 25% direct local Aboriginal ownership and equity in the expanded venture.

The Corporation has also taken up 25% direct equity in the venture, and arrangements have been put in place to allow TWT to fully redeem the Corporation's share of the joint venture in the future.

Noel Bridge, from the CDC. s a m p lin g so m e o f th e

C le a rw a te r O yste r J o in t

Venture produce. In the

background is one of the

oyster leases. When fulty

established, the venture is

exp e cte d to annually supply over 150,000 dozen oysters to Australian and o v e r s e a s

markets.

Industry experience and proven management skills provided by the other 50% equity partner will ensure the day-to-day operations of the business are undertaken on a sound commercial basis. It is envisaged that the new joint venture will provide benefits that include greater

economies of scale and better quality and greater quantity of oysters

41

as demanded by both local and export markets, as well as

employment opportunities for the local Aboriginal community.

(7) A m piji

During 1992-93 the Corporation assessed various options associated with the Aboriginal and Torres Strait Islander involvement in the marketing of arts and craft products on a national basis. In doing so, the Corporation was aware of previous attempts to establish national outlets and adopted a preferred policy of commencing any such operations initially on a relatively small basis and building from there.

As a first step in this policy, and building upon a national Aboriginal and Torres Strait Islander arts and craft conference held in Queensland during 1992, agreement was reached to tender for a new retail outlet to be constructed as part of the redevelopment of the international terminal at Cairns airport.

Preliminary agreement has been reached with a number of Northern Territory and Queensland based Aboriginal and Torres Strait Islander arts and craft organisations to form a joint venture, Ampiji, to undertake this commercial venture. Corporation loan funding to the venture of $160,000 has been approved in principle to implement the proposal; however, until a decision is made by the Cairns Port Authority on the airport development, this proposal cannot be progressed.

43

In 1993/94 greater emphasis will be placed on identifying investment opportunities in particular States in order to achieve an equitable and balanced portfolio of investments.

The composition of the Corporation's investment portfolio will be addressed in detail as part of the review of its Corporate Plan to occur in 1993-94.

Corporation Profile/Public Relations

In 1993/94 the Corporation intends undertaking action to lift its corporate profile and generally seek to increase Aboriginal and Torres Strait Islander awareness of its existence and activities. A public relations/promotional kit is being developed and will be made available early in 1994.

Financial Operations

Following the completion of the refurbishment of Bonner House and implementation and establishment of several investment projects in 1992/93 the Corporation is budgeted to generate an operating surplus in excess of $2.0 million in 1993/94.

This projected result will represent a major increase over that achieved in previous years and is a reflection of both a stronger income stream being produced by the refurbished Bonner House, together with the change from

the Corporation receiving diminishing interest rate returns on its cash resources being replaced by higher commercial returns from its investments.

Corporate Plan

During 1993-94 the Corporation will be undertaking a major review of its Corporate Plan.

Guarantees

Under s. 153 of the Act, the Corporation has the power to provide guarantees associated with its commercial activities.

During 1993/94 action is planned to seek an approved limit from the Commonwealth Treasurer to enable the Corporation to consider such guarantees as the need arises.

44

Aboriginal and Torres Strait Islander Commission (ATSIC)

In keeping with the close working relationship that exists between the Corporation and ATSIC, it is intended that in 1993/94 a series of program guidelines and procedures be developed covering the areas of associated

program activity occurring.

In particular, both organisations have identified the need to provide the client group with appropriate information and guidance on how the program activities of the Corporation and ATSIC relate and complement

each other. In addition, internal guidelines and procedures will be developed for the benefit of staff in both organisations to ensure that appropriate program priorities and structures are considered and implemented when assessing commercial proposals.

Future Funding

1993-94 will be the final year in which the Corporation will receive a capital subvention of $10 million from Government to establish its capital base. This will complete the overall $40 million commitment m ade by Government when the Corporation was established in 1990.

Without further capital subvention in subsequent years the scale of investment operations capable of being considered and implemented by the Corporation will seriously reduce following investment of the Corporation's existing cash reserves into direct commercial ventures.

AUSTRALIAN NATIONAL AUDIT OFFICE

Centenary House 19 National Crt Barton ACT 2600

our rel;

INDEPENDENT AUDIT REPORT

To the M inister fo r A boriginal and Torres Strait Islander Affairs

Scope

I have audited the financial statem ents o f the A b o rig in a l a n d T orres S trait Islander C om m ercial D evelopm ent C orporation fo r the ye a r e n d e d 30 Ju n e 1993. The

financial statem ents include the conso lid a te d financial statem ents o f th e e c o n o m ic entity co m p risin g the C orporation and the entities it c o n tro ls at the y e a r’s end or

from tim e to tim e during the year. The statem ents com p rise :

. Balance Sheet

Profit and Loss Statem ent

S tatem ent of Cash Flows

S tatem ent by D irectors, and

. Notes to and form in g part of the financial statem ents.

The m em bers of the governing b o d y are re sp o n sib le fo r the p re p a ra tio n and

presentation of the financial statem ents and the inform ation th e y contain. I have co n d u cte d an in dependent audit of the financial statem ents in o rd e r to e xpress an opinion on them to the M inister for A boriginal and T orres S trait Islander Affairs.

The audit has been co n d u cte d in a cco rd a n ce w ith A ustralian N ational A u d it Office A uditing S tandards, w hich incorporate the A ustralian A u d itin g S ta n d a rd s to p ro vid e reasonable assurance as to w hether the financial statem ents are free o f m aterial m isstatem ent. A udit pro ce d u re s included exam ination, on a te st basis, o f evidence s u p p o rtin g the am ounts and other disclosures in the financial statem ents, a n d the evaluation of a ccounting policies and sig n ifica n t a c co u n tin g estim ates. These pro ce d u re s have been undertaken to form an o p in io n w hether, in all m aterial

respects, the financial statem ents are presented fairly in a c c o rd a n c e w ith A ustralian accounting co ncepts and standards and sta tu to ry req u ire m e n ts so as to p re se n t a view w hich is co n sistent with my u n d e rsta n d in g o f the C o rp o ra tio n and the

econom ic entity’s financial position, the results o f th e ir o p e ra tio n s a n d th e ir cash flows.

The audit opinion expressed in this re p o rt has been fo rm e d on the ab o ve basis.

GPO Box 707 Canberra A ustralian Capital Territory 2601 Telephone (06) 203 7300 Facsim ile (06) 203 7777

Aboriginal and Torres Strait Islander COMMERCIAL DEVELOPMENT CORPORATION

ABORIGINAL AND TORRES STRAIT ISLANDER COMMERCIAL DEVELOPMENT CORPORATION AND CONTROLLED ENTITIES

STATEMENT BY DIRECTORS IN RESPECT OF THE FINANCIAL STATEMENTS OF THE CORPORATION AND OF THE ECONOMIC ENTITY FOR THE YEAR ENDED 30 JUNE 1993.

The attached statements have been drawn up in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister for Finance.

In the opinion of the Directors, the attached statements are drawn up in order to fairly show:

(a) the operating result of the Corporation and the Economic Entity for the financial year ended 30 June 1993;

(b) the financial position of the Corporation and of the Economic Entity as at 30 June 1993; and

(c) the cash flow of the Corporation and the Economic Entity during the 1992/93 financial year.

Signed in accordance with a resolution of the Board of Directors.

•A

Chairperson

Director

% /ϋ December 1993 51 h Floor. Bonner House, Neplune Street. WODEN ACT 2606 ΙΌ Box 38. WODEN ACT 2800 Telephone: (06) 285 3031 Fncsimile: (06) 285 2348

PROFIT AND LOSS STATEMENT FOR YEAR ENDED 30 JUNE 1993

ABORIGINAL A N D TORRES STRAIT ISLANDER C O M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

Notes Economic Entity Corporation

1993 1992 1993 1992

$ $ $ $

OPERATING REVENUES (before abnorm al Items) Interest revenue 1 412 147 2 261 990 1 483 563 2 261 825

Rent revenue 451 659 644 616 446 259 644 616

Project revenue 695 139 15 701 768 744 40 659

Sales revenue 449 676 217 189 - -

Other revenue 2 740 - 2 740 -

Total operating revenues before abnormal Items 3 011 361 3 139 496 2 701 306 2 947 100

OPERATING EXPENSES (before abnorm al Items) Rental expenses 2 335 741 329 534 333 534 329 534

Administration expenses 3 1 640 045 1 401 765 1 616 134 1 387 465

Orchard expenses 4 273 075 176 650 - -

Total operating expenses before abnormal Items 2 248 861 1 907 949 1 949 668 1 716 999

Operating Profit before abnormal Items 762 500 1 231 547 751 638 1 23Q101

Abnormal Items (before Incom e tax) 5 (317 000) (5 449 448) (317 000) (5 449 448)

Operating profit/(loss) after abnormal Items 445 500 (4 217 901) 434 638 (4 219 347)

Income tax attributable to operating proflt/(loss) 6 21 877 1 317 -

Operating proflt/(loss) after Income tax 423 623 (4 219 218) 434 638 (4 219 347)

Loss on Extraordinary Items 7 (698 000) - (698 000)

(no Income tax applicable)

Operating profit/(loss) and extraordinary Items after Income tax 423 623 (4 917 218) 434 638 (4 917 347)

Accum ulated profits at beginning of financial year (1 785 136) 3 132 082 (1 785 265) 3 132 082

Accumulated profits/dosses) at end of financial year 8 (1 361 513) (1 785 136) (1 350 627) (1 785 265)

The accompanying notes form part of these financial accounts.

49

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

BALANCE SHEET AS AT 30 JUNE 1993

Notes Economic Entity Corporation

1993 1992 1993 1992

$ $ $ $

CURRENT ASSETS Cash 10 1 079 581 409 530 356 288 396 765

Receivables 11 1 111 891 486 244 937 658 379 290

Investments 12 21 019 722 22 968 118 20 914 722 22 968 118

Inventories 13 128 434 - - -

Other 14 67 654 7 642 63 257 -

Total Current Assets 23 407 282 23 871 534 22 271 925 23 744 173

NON-CURRENT ASSETS Investments 12 25 856 362 15 917 037 27 294 745 15 945 910

Inventories 13 509 254 - - -

Intangibles 15 37 690 - - -

Plant & equipm ent 16 210 485 181 728 200 344 171 977

Total Non-Current Assets 26 613 791 16 098 765 27 495 089 16 117 887

Total Assets 50 021 073 39 970 299 49 767 014 39 862 060

CURRENT LIABILITIES Creditors and Borrowings 17 664 834 1 170 252 565 192 1 134 843

Provisions 18 100 759 63 420 91 894 51 927

Total Current Uabllltles 765 593 1 233 672 657 086 1 186 770

NON-CURRENT LIABILITIES Creditors and Borrowings 17 134 521 59 891 - -

Provisions 18 21 877 1 317 - -

Total Non-Current Liabilities 156 398 61 208

Total Uabllltles 921 991 1 294 880 657 086 1 186 770

Net Assets 49 099 082 38 675 419 49 109 928 38 675 290

EQUITY Capital 19 50 460 555 40 460 555 50 460 555 40 460 555

Settlors Trust Funds 40

A ccum ulated Profits/CLosses) 8 (1 361 513) (1 785 136) (1 350 627) (1 785 265)

Total Equity 49 099 082 38 675 419 49 109 928 38 675 290

The a c c o m p a n y in g notes form p a rt o f these financial acco u nts.

A B O R IG IN A L A N D TORRES STRAIT ISLANDER C O M M E R C IA L

DEVELOPMENT CO RPO RATIO N A N D CONTROLLED ENTITIES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

STATEMENT OF ACCOUNTING POLICIES

The Corporation was established on 5 M arch 1990, w hen th e A boriginal a n d Torres Strait Islander Commission A ct. 1989 (the A ct) c a m e Into operation. The C orporation's purposes, set out at Section 146 o f the A ct, are as follows:

(a) to assist a n d en ha nce Aboriginal a n d Torres Strait Islander self-m anagem ent a n d econom ic self-sufficiency; a n d

(b) to a d v a n c e the com m ercial and eco no m ic Interests of A boriginal persons a n d Torres Strait Islanders by accum ulating a n d using a substantial ca p ita l asset for the benefit o f the Aboriginal an d Torres Strait Islander peoples.

In perform ing Its functions th e C orporation Is required to a c t In a c c o rd a n c e with sound business principles.

These financial statem ents have been pre pa red In a c c o rd a n c e with the Guidelines for Financial Statements of FXjblic Authorities a n d C om m ercial Activities issued by th e Minister for Finance. These Guidelines require the acco un ts to be p re pa red In a c c o rd a n c e with

a p p lic a b le Statements o f A ccou ntin g C oncepts, a p p lic a b le A cco u n tin g Standards and equivalent requirements to those c o n ta in e d In the Corporations Law In respect o f the

presentation and disclosure of financial Inform ation. Including th e disclosure requirements o f Schedule 5 of the Corporations Law. The accounts have also been p re pa red on the basis of historical costs and do not take Into a c c o u n t cha ng ing m oney values or, e x c e p t where stated,

current valuations o f non-current assets. Cost Is based on the fair value o f th e consideration given in exchange for assets. The a cco un ting policies have been consistently applied.

The following Is a summary o f th e significant a c co u n tin g policies a d o p te d b y th e eco no m ic entity In the preparation of fhe accounts.

(a) Principles of Consolidation

The consolidated accounts o f fhe eco no m ic entity Include the acco un ts o f the C orporation a n d all entities It controls, This Includes trusts, to the extent th a t th e C orporation Is the

beneficiary, and where the C orporation Is ab le to control the trustee. The controlled entitles are de tailed In Note 12 to the accounts. All Inter-entity balances a n d transactions be tw ee n entitles In the eco no m ic entity, Including an y unrealised profits or losses, have been

elim inated Where necessary, acco un ting policies a d o p te d by th e con tro lled entitles w hich are dissimilar to the parent entity's have been m a d e consistent with th e policies a d o p te d by the parent entity. W here controlled entitles ha ve entered the e c o n o m ic entity during the year, their operating results have been Included from the d a te control was obtained.

(b) Plant and Equipment

Plant and equipm ent Items are brought to a c c o u n t a t cost, less any a c c u m u la te d

depreciation. O ffice equipm ent transferred from th e C om m onw ealth on 5 M arch 1990 was brought to acco u n t a t tha t d a te at the w rltten-dow n value a c c o rd in g to the records o f th e former D epartm ent o f Aboriginal Affairs.

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

52

A B O R IG IN A L A N D TORRES STRAIT ISLANDER C O M M E R C IA L

DEVELOPMENT CO RPO R ATIO N A N D CONTROLLED ENTITIES

(c) Property Investments

The values o f these Investments are review ed annually to ensure th a t the y are not reco rde d at am ounts In excess o f their recoverable am ount, an d It Is th e p o lic y o f the Corporation to ob ta in formal valuations from Independent valuers a t least o n c e every three years

A ccordingly, these properties are not d e pre ciated .

(d) Investments In shares and convertible notes

Non-current Investments In shares a n d convertible notes have b e en brought to acco u n t at their cost price or a t Directors’ valuation. The carrying am ount o f Investments Is review ed at least annually b y Directors to ensure It Is not in excess o f the re co vera ble am ount o f these

Investments. Details o f Investments are pro vid ed a t N ote 12.

Distributions from these Investments are brought to a c c o u n t In th e profit an d loss a c c o u n t by the Corporation In th e financial year in which the y are proposed.

(e) Investments In trusts

Investments In trusts are valued at cost or at directors' valua tion In the accounts of the

Corporation. The acco un ts o f controlled trusts are consolidated. Investments In non-controlled trusts are valued a t cost or a t directors' valuation In th e con solida te d accounts of the

eco no m ic entity.

Revenues from Investments In trusts are brought to a c c o u n t on an accru al basis In the accounts of the Corporation, Revenues from Investments In trusts w h ich are not ’controlled* entitles are brought to a c c o u n t on an accru a l basis In th e con solida te d accounts of the

eco no m ic entity. The carrying value o f Investments In trusts are review ed annually to ensure th a t those am ounts do not exceed the estim ated reco vera ble value. Inform ation about the financial perform ance o f Investments In trusts Is pro vid ed In Note 12.

(f) Inventories - Land Held for Resale and Land Held tor Development and Sale

Land held for resale a n d developm ent an d sale Is valued a t th e lower of cost a n d net

realisable value. Cost Includes the cost o f acquisition, de velopm e nt. Interest on funds borrow ed for the de velopm e nt and holding costs until com p le tio n o f developm ent. Interest an d holding charges Incurred after de velopm ent are expensed. Revenues are brought to a c c o u n t on the signing o f an unconditional c o n tra c t of sale.

(g) Inventories - Other

Inventories are m easured at the lower o f cost an d net realisable value.

ABO RIG IN A L A N D TORRES STRAIT ISLANDER C O M M E R C IA L

DEVELOPMENT CO RPORATION A N D CONTROLLED ENTITIES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

Intangibles

Intangibles comprise legal and associated form ation costs relating to Investments In controlled entitles, where It Is e xp e cte d th a t those costs will b e recoverable In terms o f con tra ctual arrangem ents relating to the eventual disposal o f th e C orporation's Interests In those entitles to co-investors The carrying am ount Is review ed annually to ensure th a t It does not exce ed the am ount which Is e xp e c te d to be recoverable. O ther form ation costs are tre a te d as expenses In the year In which the y are Incurred.

Depreciation and Amortisation

Properly, plant and equipm ent, other th a n th e com m ercial property investments, are

d e p re c ia te d over their estim ated useful lives using the straight line m ethod. Profits a n d losses on disposal of property, plant an d equipm ent are taken Into a c c o u n t In determ ining the result for the year.

Income Tax

In a c c o rd a n c e with Section 188 o f the Aboriginal and Torres Strait Islander Commission A ct 1989, the C orporation Is not subject to taxation. A ccordingly no provision for ta x p a ya b le Is m a d e for the Corporation. However, Section 188 does not ap ply to th e controlled entitles, a n d Incorporated controlled entitles are subject to Incom e tax.

For these entitles, the liability m ethod of tax-effect acco u n tin g Is a d o p te d , w hereby the Incom e tax expense shown in the profit a n d loss a c c o u n t Is based on the operating profit before incom e tax adjusted for any perm anent differences. Timing differences which arise due to the different a cco un ting periods in w hich Items o f revenue a n d expense are Included In the determ ination of operating profit before incom e tax a n d ta xa b le Incom e are brought to a c c o u n t either as provision for deferred incom e tax or an asset described as future Incom e tax benefit at the rate of Incom e tax a p p lica b le to the period In which the benefit will be

received or the liability will b e co m e payable.

Future Income Tax Benefits

Future Incom e Tax Benefits are only brought to a c c o u n t when there Is virtual certainty th a t the realisation of the asset will o ccu r through the derivation o f future assessable Incom e o f a nature and sufficient am ount to enable the benefit to be realised; an d th e entity has a n d will continue to com ply with the legislative requirements for deductibility.

Employee Benefits

Provisions for the entity's liability for recreation leave and long service leave represent amounts p a yab le or e xp e cte d to b e co m e p a ya b le to em ployees based on their respective

entitlem ents and period of service.

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

ABORIGINAL A N D TORRES STRAIT ISLANDER C O M M ERCIAL DEVELOPMENT CORPORATION AN D CONTROLLED ENTITIES

Notes

3. ADMINISTRATION EXPENSES

Audit Fees 22

Communications Com pany secretarial costs Conferences and meetings

Depreciation Directors emoluments 24

Expensing of project Investment 12(!x)

Formation expenses Funds m anagem ent fees Insurance 20

Interest Motor vehicle expenses O ffice accom m odation expenses O ffice equipm ent expenses O ffice furniture and fittings Official entertainment Printing and stationery Professional fees Project evaluation, establishment

and monitoring Public relations Staff salaries and associated expenses Including provision

for em ployee benefits 3(1)

Sundry expenses Survey fees

Total Administration Expenses

3.(1) Remuneration of Executives Amounts received, or due and receivable by Executive Officers whose remuneration and separation allowances exceeded S 100,000

The number o f Executive Officers whose remuneration exceeded $100,000

Economic Entity Corporation

1993 1992 1993 1992

$ $ $ $

51 025 30 850 39 000 28 350

29 754 22 632 29 754 22 632

411 - - -

123 60ό 102 274 123 606 102 274

67 421 44 893 66 312 42 654

39 535 70 592 39 535 70 592

270 000 270 000

- 895 - -

54 023 53 723 52 628 53 723

3 629 2 368 - -

3 660 1 919 - -

18 372 16 845 18 248 15 805

13913 46 483 13913 45 745

24 146 2 271 23 575 2 271

11 861 617 11 861 617

1 004 2 291 1 004 2 291

17 847 11 171 17505 11 106

48 036 14 257 48 036 12 432

399 798 331 545 399 154 331 545

26 603 18 248 26 603 18 248

686 715 340 279 686 715 340 279

18 686 17 425 18 685 16 901

- 187 - -

1 640 045 1 401 765 1 616 134 1 387 465

244 422 110 000 244 422 110 000

1 1 1 1

Mi

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

ABO RIGINAL A N D TORRES STRAIT ISLANDER C O M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

Notes

4. ORCHARD EXPENSES 12(11)

C ontract services Cracking and sorting Electricity Equipment hire

Fertilisers Freight and cartage Fuel and oils - plant Leaf, Soil & Seed Analysis Lease Fees Licence Fees & Permits Pest control

Pollination Repairs and m aintenance Spraying materials M anaging agent fees

Wages - staff Wages - casual

Total Orchard Expenses

5. ABNORMAL ITEMS

A. Costs associated with Bonner House refurbishment I) costs associated with the tem porary relocation of

existing tenants to enable the refurbishment to proceed II) Incentives provided to tenants associated with new

tenancy arrangements III) costs associated with a major retail tenancy marketing cam paign

B. Write down In the value ot Bonner House I) write down attributable to

the revision o f the valuation as at 5 March 1990 II) reduction In value arising from adoption of a new

valuation as at 30 June 1992.

C. Diminution In Investment Carrying Value 12(vili)

Total Abnormal Items

Economic Entity Corporation

1993 1992 1993 1992

$ $ $ $

17 6 713

37 410 21 972 -

14 658 13 402 -

- 709

16 796 11 030

7 189 3 188

7 103 6 178

135 -

15 846 -

313 -

1 894 1 010

7 200 -

10 407 17 003

33 723 11 021

30 000 22 500

85 846 51 858

4 538 10 066

273 075 176 650 ,

233 483 233 483

- 203 070 - 203 070

10 000 10 000

446 553 446 553

•

- 2 344 539 - 2 344 539

2 658 356 2658 356

5 002 895 5 002 895

317 000 317 000

317 000 5 449 448 317 000 5 449 448

57

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

Economic Entity Corporation

1993 1992 1993 1992

INCOME TAX (CONTROLLED ENTITY) The om ount of Income fox attributable to the financial year differs from the om ount prima facie payable on the operating profit. The differences are reconciled as follows:

$ $ $ $

Prima facie Income tax on the operating profit 30 592 968 - -

Tax effect of perm anent differences 1 Non deductible formation costs • Abnorm al Item, adjustment to future Incom e tax benefit and provision for

deferred Income tax after change In

349

com pany tax rate to 33% * Abnorm al item, bringing to account tax losses not previously brought

(4 218)

to account (4 497)

— — — —

(8 715) 349 — I— -

Income tax attributable to operating profit before abnormal Items 21 877 1 317 - -

Provision for Income Tax attributable to future years:

Provision for Deferred Income Tax 45 317 54 719

Future Income Tax Benefit (23 440) (53 402) — -— -

The Future Income Tax Benefit Is m ade up of the following:

21 877 1 317

—— — —

Tax losses 23 806 52 440 „

Timing Differences (366) 962 — :— — 1 —

23 440 53 402

EXTRAORDINARY ITEMS

Removal of asbestos during refurbishment of Bonner House: - 698 000 - 698 000

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

Economic Entity Corporation

ABORIGINAL A N D TORRES STRAIT ISLANDER C O M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

1993 1992 1993 1992

$ $ $ $

. CASH FLOW INFORMATION Reconciliation o f operating proflt/(loss) after Incom e tax Items with net cash flow provided by operating activities

O perating proflt/(loss) after Incom e tax 423 623 (4 219 218) 434 638 (4 219 347)

Depreciation and amortisation 67 422 44 893 66 312 42 654

Abnormal writedown of property value - 5 002 895 - 5 002 895

Abnormal expense of refurbishment costs - 446 553 - 446 553

Abnormal writedown of Investment carrying value 317 000 - 317 000 -

Changes In assets and liabilities: Decrease (Increase) In rental Incom e held by m anaging agent (139 558) 116 225 (139 558) 116 225

Decrease (Increase) In debtors and prepayments (501 502) (145 961) (371 429) (35 338)

Decrease (Increase) in deferred expendture 3 963 (3 963)

Decrease (Increase) In stock (7 111) - - -

Decrease (Increase) In Intangibles (7 340) „

Decrease (Increase) In other assets (280)

Increase (Decrease) In creditors and borrowings 12 388 13 354 (88 499) (23 9641

Increase (Decrease) In prepaid rents (26 650) „ (26 650)

Increase In em ployee related provisions 1 554 38 425 5 500 39 458

Increase In provision for deferred Incom e tax 21 877 1 317 .

Net cashflow provided by operating activities 192 036 1 267 870 223 964 1 342 486

There are no standby financing arrangements to provide funds or support facilities.

0. CASH AT THE BEGINNING AND END OF REPORTING PERIOD Cash for cashflow purposes Is represented by:

Cash at bank 1 079 291 409 389 356 038 396 624

Cash on hand 290 141 250 141

Funds held on deposit 105 000 - -

Funds held In cash m anagem ent trust operated by Com m onw ealth Funds M anagem ent Ltd 20 914 722 22 568 118 20 914 722 22 568 118

22 099 303 22 977 648 21 271 010 22 964 883

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

Note* Economic Entity Corporation

60;

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL

DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

11. RECEIVABLES

Monies held by m anaging agent Debtors

12. INVESTMENTS

CURRENT

Corporation Investment In Cash M anagem ent Trust operated by Com m onw ealth Funds M anagem ent Limited

Controlled entitles Investments In Interest bearing deposits with banks

Non-controlled entitle* Loan - Kings Canyon Resort 12(vill)

Total current Investments

NON-CURRENT

Corporation Land and Buildings (Bonner House) 12(1)

Controlled entitles

Ngarrlndjerl Community O rchard 12(11) - Shares In com pany - Loan

Torres Strait Islander Investment Corporation 12(111)

- Shares In com pany - Units In trust - Loan

Nltmlluk Gorge 12(iv)

- Shares In com pany - Intercom pany advance

Mt Todd Mining Services 12(v)

- Shares In com pany

Sunwood Timber 12(vl)

- Shares In com pany

Ceduna Clear-Wcrter Oysters 12(vii)

- Shares In com pany

1993 1992 1993 1992

$ $ $ 1

142 001 2 442 142 001 2 44;

9 6 9 8 9 0 483 802 795 657 376 84t

1 1 11 891 486 244 937 658 3/9 29<

20 914 722 22 568 118 20 914 722 22 568 1U

105 000 - - ■ '

400 000 4 0 0 ooc

21 0 1 9 72 2 22 968 118 20 914 722 22 968 l i t ·

14 22 2 9 8 8 8 800 000 14 222 988 8 800 OOC

10 1C

- ~ 102 863 28 86Z·

2

- 50 500

- - 654 500 •

2 . .

- - 630 500 • .

- - 2

- - 2 - .

2

NOTES TO A N D F O R M IN G PART O F THE A C C O U N T S FOR THE YEAR ENDED 3 0 JUNE 1993

61

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

N o te s E c o n o m ic Entity C o rp o ra tio n

2. INVESTMENTS continued NON-CURRENT continued

Non-controlled entitles Kings Canyon Resort - Share In com pany

12(vlll)

1993

$

1

1992

$

1

1993

$

1

1992

$

1

- Units In trust 2 500 000 2 817000 2 500 000 2 817 000

Dreamtime People - Shares In general partnership com pany

12(lx)

11 11 11 11

- Shares In trustee com pany 11 11 11 11

- Units In trust 11 11 11 11

Barra Base Fishing Lodge - Share In com pany

12(x)

1 1 1 1

- Units In trust 300 000 300 000 300 000 300 000

Central Australian Vehicle Dealership - Share In com pany 12(xl) 1 1 1 1

- Units In trust 1 133 333 1 000 000 1 133 333 1 000 000

Burnle Shopping Centre .

- Share In com pany

12(xil)

1 1 1 1

- Units In trust 3 000 000 3 000 000 3 000 000 3 000 000

Port H e da nd Homestead Centre - Shares In com pany 12(xili) 2 2

- Units In trust 1 050 000 - 1 050 000 -

- Loan to Pt Hedland Regional Aboriginal Corporation 150 000 - 150 000 -

Henry Walker Convertible Notes 12(xlv) 3 500 000 - 3 500 000 -

Carpentaria Shipping Services - Shares In com pany 12(xv) 2 2

Total non-current Investments 25 856 362 15 917 037 27 294 745 15 945 910

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

ABO RIGINAL A N D TORRES STRAIT ISLANDER C O M M ER C IA L DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

the com p an y Is one million SI ordinary shares, o f w hich tw o have been Issued. Both shares are held by the Com m ercial Developm ent Corporation either directly or through a trustee. The Com m ercial D evelopm ent Corporation holds units valued a t $50,500 (the total trust subscription). Neither the C om m ercial Developm ent Corporation nor any related party holds any options In respect o f the trustee co m p a n y or the trust.

The financial affairs o f the C om pany an d the Trust are reported as pa rt o f these Econom ic Entity accounts. The entity (C om pany an d Trust com b in ed) ge ne rated a nil net profit. The Trust

con tribu te d $66,545 to the operating result o f th e C om m ercial Developm ent C orporation for the year ende d 30 June 1993.

120v) NITMILUK GORGE TOURS AND CAMPING GROUND (CDC NOMINEES (NITMILUK) PTY LIMITED ACN 059 599 512 and NITMILUK JOINT VENTURE PARTICIPATION TRUST)

CDC Nominees (Nltmlluk) Pty Limited was Incorporated on 29 April 1993 as Arbln Pty Limited and c h a n g e d Its nam e to the current title on 7 May 1993. The C om pany was dorm ant until 11 M ay 1993 when It established an Investment vehicle known as the Nltmlluk Joint Venture Participation Trust a n d c om m e nce d operation as the non-trading trustee o f th a t Trust.

Nltmlluk Joint Venture Participation Trust was established on 11 M ay 1993, as an Investment participation trust by Its Trustee, CDC Nominees (Nltmlluk) Pty Limited.

The trustee com pany Is wholly ow ned by the Corporation, and the C orporation Is the only

beneficiary o f the trust. The authorised cap ital o f the com p an y Is one million $1 ordinary shares, of which tw o have been Issued. Both shares are held by the Corporation either directly or through a trustee. Neither the Corporation nor any related party holds any options In respect of the trustee com p an y or the trust.

On 12 July 1993, the Nltmlluk Joint Venture was established. At th a t tim e $625,000 of th e a d va n ce from the Corporation was used to acquire a 25% equity shareholding In th e Nltmlluk Joint Venture, which has been Independently valued a t $3,125,000. The principal activities o f the Nltmlluk Joint Venture are the operation o f b o a t tours a n d a cam ping, caravan an d recreation facility a t

Katherine Gorge. The valuation referred to was undertaken by L J Hooker as pa rt o f the Due Diligence review commissioned by the Corporation prior to th e Investment decision being taken.

The financial affairs of the C om pany and the Trust are reported as part o f these Econom ic Entity accounts. The entity (C om pany and Trust com bined) ge nerated a net loss o f $1,420 for the year en de d 30 June 1993 This loss Is fully represented by the accrual for audit fees less Interest received.

12(V) MT TODD MINING SERVICES (CDC NOMINEES (MT TODD) PTY LIMITED ACN 059 599 807 and MT TODD JOINT VENTURE PARTICIPATION TRUST)

CDC Nominees (Mt Todd) Pty Limited was Incorporated on 29 April 1993 as Ranbl Pty Limited and c h a n g e d Its nam e to the current title on 7 M ay 1993. The C om pany was dorm ant until 11 M ay 1993 when the Mt Todd Joint Venture Participation Trust was established. The C om pany then

c om m e nce d operation as the non-trading trustee o f th a t Trust.

Mt Todd Joint Venture Participation Trust was established on 11 M ay 1993, as an Investment participation trust to Invest In a joint venture.

The trustee com pany Is wholly ow ned by the Corporation, and th e Corporation Is the only

beneficiary of the trust. The authorised capital o f th e com p an y Is one million $1 ordinary shares, of which tw o have been Issued. Both shares are held by the Corporation either directly or through a trustee. Neither the Corporation nor any related party holds any options In respect of the trustee com p an y or the trust.

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

64 I

A B O R IG IN A L A N D TORRES STRAIT ISLANDER C O M M ER C IA L

DEVELOPMENT CORPO RATIO N A N D CONTROLLED ENTITIES

On 13 August 1993. 16 August 1993 a n d 23 August 1993 the Investment participation trust received advances o f $20,000, $81,000 and $825,000 respectively from the Corporation $925XXX) of the proceeds o f these advances, totalling $926,000, were used to acq uire a 25% equity shareholding In th e Mlrrkworlk Joint Venture on the respective dates. The principal activities of the Mlrrkwortk Joint Venture are th e provision o f con tra ct m ining services to the go ld m ine a t Mt Todd In the Northern Territory.

The financial affairs o f the C om pany an d the participation trust are reported as part of these Econom ic Entity accounts. The entity (C om pany a n d Trust c om b in ed) ge nerated a net loss of . $1,500 for the year en de d 30 June 1993. This loss Is fully represented b y the accrual for audit fees The a cco un ting for this loss has resulted In the M t Todd Joint V enture Participation Trust be com ing a

deficient trust, however, tw o o f the Directors o f CDC Nominees (M t Todd) Pty Ltd have provided . personal guarantees o f support.

12(vl) SUNWOOD TIMBER (CDC NOMINEES (DANDENONG) PTY LIMITED ACN 060 123 560 and SUNWOOD TIMBER JOINT VENTURE PARTICIPATION TRUST)

CDC Nominees (D andenong) Pty Limited was Incorporated on 19 M ay 1993 as Letmah Ply Limited and c ha ng ed Its na m e to the current title on 8 June 1993. The C o m pa ny was dorm ant until 18 June 1993 when It b e c a m e the trustee o f an Investment vehicle known as the Sunwood Joint Venture Participation Trust a n d com m e nce d operation as the non-trading trustee of tha t Trust

Sunwood Joint Venture Participation Trust was established on 18 June 1993 to Invest In a Joint venture. On 5 July 1993 the Investment participation trust received an a d va n ce of S900.CXX) from the Corporation. The proceeds of this a d v a n c e were used to acquire a 37 5% equity shareholcing In the Sunwood Timber Joint Venture on 6 July 1993. This Joint venture has been valued at

$2,500,000 an d Its principal activities are th e milling o f renew able forest products The valuation referred to was undertaken by Price W aterhouse - M elbourne as pa rt o f the Due Diligence review commissioned by the Corporation prior to the Investment decision being taken

The trustee co m p a n y Is wholly ow ned by the C orporation, an d the Corporation Is the only

beneficiary of the trust. The authorised c a p ita l o f the com p an y Is one million $1 ordinary shares, of which tw o have been Issued. Both shares are held b y officers o f th e C orporation In trust for the Corporation. Neither th e Corporation nor any related party holds any options In respect of the trustee com p an y or the trust.

The financial affairs of the Com pany and the participation trust are reported as part of these Economic Entity accounts. The entity (C om pany a n d Trust com bined) generated a net loss of $1,500 for the year en de d 30 June 1993. This loss Is fully represented by the accrual for audit fees Tne acco un ting for this loss has resulted In the Sunwood Joint Venture Participation Trust becom ing a

deficient trust, however, tw o of the Directors o f CDC Nominees (D andenong) Pty Ltd have provided personal guarantees o f support.

12

CDC Nominees (C eduna) Pty Limited was Inco rp ora te d on 19 M ay 1993 as Hemlat Pty Limited and c ha ng ed Its nam e to the current title on 10 June 1993. The C om pany was dorm ant until 18 June 1993 when the C eduna Joint Venture Participation Trust was established. It then com m e nce d . operation as the non-trading trustee of tha t Trust.

C eduna Joint Venture Participation Trust was established on 18 June 1993. as an Investment participation trust to Invest In the Ceduna C learw ater Oysters Joint Venture.

NOTES TO A N D FO RM ING PART OF THE ACCO UNTS FOR THE YEAR ENDED 30 JUNE 1993

66

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROUED ENTRIES

The principal activities of the Trust comprise the developm ent and operation of a tourist resort which was officially opened In O ctober 1991, lo ca te d ad ja cent to Kings Canyon In the Watarrka N ationd Park In the Northern Territory.

The Trust contributed $1,248 (excluding the diminution In value presented below) to the operating result o f the Corporation for the year en de d 30 June 1993 (1992 - $15,701). The Trust recorded an operating loss after tax o f $1,038,731 for the year ended 30 June 1993 (1992 - loss of $1,507,678) and accum ulated losses at 30 June 1993 are $2,546,409 (1992 - accu m ulated losses of $1,507,678)

The Directors of the Corporation have had regard to the losses o f the Trust for the year ended 30 June 1993 o f $1,038,731, to accum ulated losses to 30 June 1993 during the developm ent phase of the Kings Canyon Resort, and to valuations prepared for a major lender to the venture. Directors have also received advice regarding Improving trading results o f the Resort after balance dole,

and to advice from the hotel operator as to expected future cash flow projections expected to flow from Improved road access to the Resort. Accordingly, Directors have form ed the view that, on the basis of conditions existing at ba la nce date, It would be prudent to write-down Its Investment

In the Trust to $2,500,000, which represents the cost of the Ά ' Preference Units. The write-down of $317,000 has been recorded as an abnorm al Item (refer also to note 27).

Director remain optimistic about the prospects of the Kings Canyon Resort.

12(lx) DREAMTIME PEOPLE (AUSTRALIA) PTY LIMITED (IN LIQUIDATION) A O N 053 678 229)

During the year ended 30 June 1992 the Corporation Invested In a limited liability partnership established to stage an Aboriginal theatrical production In Queensland.

In late May 1992 minor problems with the production coupled with a serious break-down In the relationship betw een the other tw o partners led to closure of the show In June 1992.

As at 30 June 1993 the Dreamtime People general partner, Dream tim e People (Australia) Pty Ltd was In the process of being liquidated with a formal liquidator being ap po inte d by the Queensland Supreme Court on 22 July 1992. While recovery action Is being pursued, the Directors of the Corporation were uncertain whether any of its investment will be recovered from the Liquidator and

In the circumstances expensed in the financial year ended 30 June 1992 the capital contribution and loan funds Investment totalling $270 000. Dreamtime People did not contribute to the operating result of the Corporation for the year ended 30 June 1993 (1992 - nil).

12(x) BARRA BASE FISHING LODGE (BARRA BASE HOLDINGS PTY LIMITED A C N 055 452 376 a n d BARRA BASE UNIT TRUST)

During the year ended 30 June 1992 the Corporation acquired 300,000 $1 units In a non- dlscretlonary Trust entity being the Barra Base Unit Trust. The Trust was established In March 1992 and the Corporation's holding represents 99.9% of the Issued units of th e Trust as at 30 June 1992 In addition, the Corporation holds one of tw o issued shares in the trustee com pany of the Trust, namely

Barra Base (Holdings) Pty Ltd. These holdings remain unchanged for the year ended 30 June 1993

The authorised cap ital o f the trustee com pany Is one million ordinary shares of $1 and the Trust comprises o f 300,001 units. Neither the Corporation nor any related party holds any options In respect o f the trustee com pany or the trust.

Notwithstanding the majority holding of units In the Trust, the Corporation Is not In a position to exercise control o f the entity as it does not have a controlling Interest In the trustee com pany Inaddition, the trust d e e d provides that the holding of a majority num ber of units does not entitle the holder to exercise rights or control superior to that of other beneficiaries.

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

I 67

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROUED ENTITIES

The principal activities of the Trust comprise the ownership a n d leasing of a tourist fishing complex, lo c a te d on Bathurst Island In the Northern Territory.

The Trust contributed $7,250 (1992 - nil) to the operating result o f the Corporation for the year ended 30 June 1993. The Trust recorded an operating profit o f $7,250 for the year ended 30 June 1993 (1992 - $67) and. as this am ount has been distributed, or provision has been m ade for Its distribution, there are no accum ulated profits or losses (1992 - nil).

12(xl) CENTRAL AUSTRAUAN VEHICLE DEALERSHIP (CAAMV PTY LIMITED ACN 056 579 992 and CAAMV UNIT TRUST)

On 30 June 1992 the Corporation acquired 1,000,000 $1 units In a discretionary trust entity being the Central Australian Aboriginal Motor Vehicle (CAAMV) Trust. During the year en de d 30 June 1993 a further 133,333 units, valued at $133,333, were subscribed for from profits otherwise distributable. This holding represents 66.6% of the issued units of the Trust as at 30 June 1992. In addition, the Corporation holds one of four Issued shares In the trustee com pany o f the Trust, nam ely CAAMV Pty Ltd The authorised capital of the trustee com pany Is five million ordinary shares of $1 and the Trust comprises one million seven hundred thousand units of $ 1 each. Neither the Corporation nor any related party holds any options in respect of the trustee com pany or the trust.

Notwithstanding the majority holding of units In the Trust, the Corporation Is not In a position to exercise control of the entity as It does not have a controlling Interest In the trustee com pany.

The principal activities of the Trust comprise a 49% equity participation In a Toyota and Mitsubishi franchise located In Alice Springs In the Northern Territory.

The Trust contributed $153,333 (1992 - nil) to the operating result of the Corporation for the year ended 30 June 1993. The Trust recorded an operating profit of $242,570 for the year ended 30 June 1993 (1992 - nil) and. as this am ount has been distributed, or provision has been m ade for Its distribution, there are no accum ulated profits or losses (1992 - nil).

12(xll) BURNIE SHOPPING CENTRE (MILTON PTY LIMITED ACN 052 225 000 and BURNIE PROPERTY HOLDING TRUST)

On 30 June 1992 the Corporation acquired 3,000,000 $1 units In a non discretionary trust entity being the Burnle Property (Holding) Trust. This holding represents 45.8% of the Issued units o f the Trust as a t 30 June 1992 and remains unchanged for the year ended 30 June 1993. In addition, the

Corporation holds one of tw o Issued shares In the trustee com pany o f the Trust, namely Milton Pty Ltd The authorised capital of the trustee com pany Is tw o ordinary shares of $1 and the Trust comprises of 6,550,000 units of $1 each. Neither the Corporation nor any related party holds any options In respect of the trustee com pany or the trust.

The principal activities of the Trust comprise the ownership and leasing o f a retail shopping centre lo cated at Burnle in Tasmania. The Trust contributed $394,928 (1992 - nil) to the operating result o f the Corporation for the year ended 30 June 1993. The Trust recorded an operating profit o f $862,304 for the year ended 30 June 1993 (1992 - ($1,500)) and, as this am ount has been distributed, or provision has been m ade for Its distribution, there are no accum ulated profits or losses (1992 - ($1,500)).

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

68

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL

DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

12(xlil) PORT HEDLAND HOMESTEAD CENTRE (MARLBA MAYA PTY LIMITED ACN 058 419 659 (FORMERLY OWNAR PTY LIMITED) and PORT HEDLAND INVESTMENT TRUST)

Ownar Pty Limited was incorporated on 17 Decem ber 1992 and changed its nam e to Marlba Mayo Pty Limited (m eaning house o f the Aboriginal people) on 9 September 1993 The Com pany was dorm ant until 22 February 1993 when the Port Hedland Investment Trust was established and com m enced operation as the non-trading trustee o f tha t Trust, The authorised cap ital of the trustee com pany Is one million ordinary shares of $1 and the Trust comprises o f 1,500,000 units of $1 each Neither the Corporation nor any related party holds any options In respect o f the trustee com pany or the trust.

The Corporation holds directly or through nominees, 70% of the units In the Trust, tw o of the four Issued shares In the trustee com pany o f the Trust, and tw o of the four director positions

Notwithstanding the majority holding of units in the Trust, the Corporation is not In a position to exercise control of the entity as It does not have a controlling Interest In the trustee com pany.

The Port Hedland Investment Trust was established on 22 February 1993, as an Investment trust During the period to 30 June 1993 It purchased a com m ercial property In Port Hedland, Western Australia. This property is a retail and office centre which had been Independently valued by the Australian Valuation Office at $1,500,000 as part o f the Corporation's Due Diligence review prior to acquisition.

The Trust contributed $34,762 to the operating result o f the Corporation for the year ended 30 June 1993.

In addition to the direct Investment In the Homestead Centre, the Corporation has loaned the venture partner, Port Hedland Regional Aboriginal Corporation, $150,000 secured by first m ortgage over the property. This loan contributed $3,161 to the operating results of the Corporation for the

period end 30 June 1993 (1992 - nil), The Trust recorded an operating profit o f $49,660 for the year ended 30 June 1993 (1992 - nil) and, as this am ount has been distributed, or provision has been m ade for Its distribution, there are no accum ulated profits or losses (1992 - nil).

12(xlv) HENRY WALKER CONVERTIBLE NOTES (HENRY WALKER GROUP LTD ACN 007 710 483)

On 29 June 1993 the Corporation subscribed for seven convertible notes, ea ch with a face value of $500,000. The notes m ature at six monthly interval com m encing on 30 June 1995. and are secured by an unconditional bank guarantee.

The notes are convertible to ordinary shares at a price of $0,864 per share. At 30 June 1993 the shares were trading at $1.10.

The Chairperson of the Corporation holds a seat on the Henry Walker Board

Interest on the convertible notes contributed $1,534 to the operating result of the Corporation for the year ended 30 June 1993.

12(xv) CARPENTARIA SHIPPING SERVICES PTY LIMITED ACN 056 994 284

Carpentaria Shipping Services Pty Ltd was Incorporated on 19 August 1992 as Heartbeat Holdings Pty Limited and changed Its nam e to the current title In Novem ber 1992. The com pany was dorm ant until 14 O ctober 1992 when It com m enced operations to develop a tender submission associated with a specific contract proposal.

NOTES TO AND FO RM ING PART OF THE A C C O U N T S FOR THE YEAR ENDED 30 JUNE 1993

I 69

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL DEVELOPMENT CORPORATION A N D C O N TR O aED ENTITIES

During the year ended 30 June 1993, the Corporation approved the provision o f up to $75,000 towards the tender developm ent costs, of which, as at 30 June 1993, a total of $40,000 had been provided to Carpentaria Shipping Services as reimbursement of the Corporation's share o f costs Incurred to that date.

Monies provided by the Corporation are treated In the financial records o f the Com pany as loan funds. However, due to the nature of the activities being undertaken and the uncertainty of success, the Corporation has elected to expense these advances as part of normal project assessment and establishment costs. Should the com pany be successful In Its tender submission, and the Corporation continues to be Involved with the venture. It Is anticipated that the funds will be formally capitalised and represent the Corporation's Investment In the com pany and/or such other entity that controls the venture.

The Corporation holds one of the tw o Issued shares In the com pany and Its nominees hold tw o of the four d re cto r positions. The authorised capital o f the com pany Is one million ordinary shares of $ 1 each. Neither the Corporation nor any related party holds any options in respect o f the

com pany.

The principal activities o f Carpentaria Shipping are the developm ent and lodgem ent o f a tender to provide land and sea based ore services for the proposed mine at McArthur River In the Northern Territory.

Apart from the $ 4 0 ,0 0 0 expense referred to earlier, the Com pany did not contribute to the

operating result of the Corporation for the year ended 30 June 1993.

Economic Entity Corporation

Notes 1993 1992 1993 1992

1. INVENTORIES

$ $ $ $

Current

Alm ond and citrus stock on hand 7 111 .

Land held for resale 13(1) 121 323 — —

128 434

Non-current

Land held for developm ent and sale 13(0 509 254

SO) Land held for resale and developm ent and sale

Land held for resale and land held for developm ent and sale comprises: Cost of land acquisition 505 000

Capitalised developm ent expenses Capitalised Interest and 125 577 - - -

m anagem ent expenses - _______ ____ ____ ___

630,577

η

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ERCIAL DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

E c o n o m ic Entity C o rp o ra tio n

N o tes 1993 1992 1993 1992

PROVISIONS

C u rre n t Provision for deferred Income tax Employee entitlements

1 317

- Recreation leave and leave loading 41 602 29 335 36 787 26 957

- Long service leave 57 840 34 085 55 107 24 970

100 759 63 420 91 894 51 927

N o n -c u rre n t Provision for deferred Income tax 21 877 1 317 - -

CAPITAL A N D RESERVES

The Capital and Reserves of the Economic Entity Is m ade up of:

C a p ita l - Original cash transferred to the Corporation - Bonner House at original

9 559 115 9 559 115 9 559 115 9 559 115

opening valuation 8 10 894 539 10 894 539 10 894 539 10 894 539

- Value of plant and equipm ent

transferred to the Corporation - Amounts appropriated

6 901 6 901 6 901 6 901

by Government 30 000 000 20 000 000 30 000 000 20 000 000

50 460 555 40 460 555 50 46 0 555 40 460 555

R eserves

Total C a p ita l a n d Reserves 50 460 555 40 460 555 50 460 555 40 46 0 555

) INSURANCE

The Corporation and controlled entitles maintain com m ercial Insurance cover over normal risks associated with the ownership of assets, public liability and operation of their respective ventures.

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

Economic Entity Corporation

7

A BO RIG INAL A N D TORRES STRAIT ISLANDER C O M M ERCIAL

DEVELOPMENT CO RPORATION A N D CONTROLLED ENTITIES

1993 $

1992 $

1993 $

1992 $

SEGMENT INFORMATION

O perating Inter­ Total Segment Segment

revenues through dealing w /parties outside econom ic entity

segment revenues

operating revenue

results assets

INDUSTRY SEGMENTS $ $ $ $ $

Land Developm ent and Resale - 1991/92 - - - -

- 1992/93 8 868 (3 468) 5400 0 857 238

Agriculture and Aquaculture - 1991/92 217 354 - 217 354 2 483 163 107

- 1992/93 451 117 (1 441) 449 676 76 941 412 630

Mining - 1991/92 - - - - -

- 1992/93 0 - 0 (1 500) 1 34)

Tourism - 1991/92 837 498 - 837 498 (719 852) 5 746 820

- 1992/93 1 751 751 - 1 751 751 (814 370) 5 839 323

Manufacturing - 1991/92 - - - -

- 1992/93 0 - 0 (1 500) 1 341

Property Investments - 1991/92 644 616 - 644 616 112 038 11 944 721

- 1992/93 900 815 - 900 815 543 122 18 522 830

Other Investments - 1991/92 2 277 526 24 958 2 302 484 1 118 063 25 100 339

- 1992/93 1 675 347 150 010 1 825 377 208 516 28 808 613

E lim in atio n s

- 1991/92 (837 498) (24 958) (862 456) 718 815 (2 984 688)

- 1992/93 (1 776 537) (145 101) (1 921 638) 434 291 (4 422 243)

C o n s o lid a te d

- 1991/92 3 139 496 - 3 139 496 1 231 547 39 970 299

- 1992/93 3 011 361 - 3 011 361 445 500 50 021 073

Notes to a n d forming part of the segment Information:

(I) The econom ic entity operates in the following industries wholly within the Australian geographic segment:

- Land Developm ent and Resale (developm ent and subdivision o f an area on Thursday Island)

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

ABORIGINAL A N D TORRES STRAIT ISLANDER CO M M ER C IA L DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

- Agriculture and Aquaculture (growth and harvesting o f citrus fruits and almonds near Berrl In South Australia, and participation In the operation o f oyster leases at C eduna In South Australia)

- Mining (participation in the provision of mining services at Mt Todd In the Northern Territory)

- Tourism (participation In the operation of b o a t cruises and cam ping and cara van park a t Katherine G orge In the Northern Territory, and participating in ownership of tourist resort and motel at Kings Canyon In the Northern Territory)

M anufacturing (participation In milling venture producing fence paling, lattice an d other treated tim ber products)

- Property Investments (Interest In shopping com plex and car park a t Burnle In Tasmania, Interest In retail and office com plex at South Hedland In Western Australia, and ownership o f retail and office com plex at W oden In the Australian Capital Territory.)

- Other Investment (the Corporation maintains a range of other Investments whose details are provided at Note 12. and Investment In Interest bearing deposits by controlled entities)

(II) Intersegment transactions are on com m ercial terms com parable with transactions with parties outside the econom ic entity or, where no such transactions occurred, market rates.

E c o n o m ic Entity C o rp o ra tio n

1993 1992 1993 1992

22. AUDITORS REMUNERATION

Accounts received, or due and receivable, by:

$ $ $ $

Australian National Audit Office

. Price Waterhouse (Internal

27 025 9 450 15 000 7 950

audit services) 24 000 21 400 24 000 20 400

51 025 30 850 39 000 28 350

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

74

ABO RIG IN A L A N D TORRES STRAIT ISLANDER C O M M ER C IA L

DEVELOPMENT CORPORATION A N D CONTROLLED ENTITIES

Economic Entity 1 9 93 19 92

$ $

23. RELATED PARTIES

The ultim ate holding equity Is the Aboriginal and Torres Strait Islander Com m ercial Developm ent Corporation. The ownership Interest In related parties

are disclosed In Notes 12(11) - (xv). Note 24 Identifies directors who held office during the year and their rem uneration levels.

Transactions with related parties:

Controlled Entities

Project Revenue received/receivable by the Corporation: . m anagem ent services . Interest on borrowings

24. DIRECTORS' REMUNERATION AND INTERESTS

Included In administration expenses Is total rem uneration received or due and receivable by Directors in connection with

the m anagem ent of the Corporation. 39_535 70 592

Directors whose total Incom e was between S 0 - 9 999 10 8

10 00 0- 19 999 1 1

Corporation 1993 1992

$ $

73 605 16 743

76 405 23 916

150 01 0 40 659

39 535 70 592

10 8

1 1

A disclosure o f the pecuniary Interest of each of the Directors o f the C orporation has been m ade to the Minister.

The Directors of the Corporation during the financial year were:

Gatjll Djerrkura, CAM. (Chairperson) Lois O 'D onoghue, CBE AM (Deputy Chairperson) Sue Gordon, JP Mary Boek

Rodney Harold Williams

William J Brown. OA Lawrence John Willett Brian James Wright Dana Ober Robert Walker

No Director of the Corporation or controlled entities or associated entity has received, or has become entitled to receive, during or since the end of the financial year, a benefit due to any contract or contract m ad e by the Corporation or a related party with a Director, a firm of which the Director Is a m em ber or or entity In which a Director has a substantial financial interest nor received any loans or entered Into any othe transactions.

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1993

ABO RIG IN A L A N D TORRES STRAIT ISLANDER C O M M ER C IA L

DEVELOPMENT CO RPORATION A N D CONTROLLED ENTITIES

25. CO M M ITM ENTS FOR EXPENDITURE NOT BROUGHT TO ACCOUNT

C apital

I) As part o f the refurbishment o f Bonner House, the Corporation has en tered Into contracts for a num ber o f construction and professional services associated with the various stages of this work. As at 30 June 1993, the outstanding value o f such contracts was estim ated a t

S 1.106.574 (1992 - $4,800,000) all o f which Is e xp e cte d to be pa yab le within 12 months.

II) The Corporation has undertaken to subscribe for a further 120,000 units, valued a t $120,000 In the Barra Base Trust to enable a small con feren ce centre to b e constructed as part o f the tourist com plex ($100,000) and to provide ad ditional working c a p ita l ($20,000). The

Corporation expects to take up some or all o f these units during the 1993/94 financial year,

III) As at 30 June 1993, the C orporation h a d conditionally a p pro ved a num ber o f project

Investments. These Investment com m itm ents are disclose a t Note 12(11) to 12(xv).

26 EVENTS SUBSEQUENT TO BALANCE DATE

Apart from the com m e nce m ent of operations o f several ventures, through both controlled entitles and associates, as de tailed at Note 12(11) to 12(xv), no events or matters have arisen or Inform ation has b e c o m e available since the end o f the financial year th a t w ould a ffe c t the determ ination of an am ount or particular In the accounts or these notes thereto ha d th e accounts been m a d e out at the tim e of the Directors' Statement.

27. C O NTING ENT LIABILITIES

During the year en de d 30 June 1992 the C orporation undertook to provide a partial loss Indemnity to one o f the joint venture partners In the Kings C anyon resort project. The Indem nity is associated with a restructuring of the venture's working c a p ita l base. The Indem nity approval is for up to $666,667 (representing the Corporation's one-third share o f the total liability) a n d is subject to a num ber of pre-conditions, one o f which is the approval by th e C om m onw ealth Treasurer of a limit within which the Corporation m ay provide such guarantee facilities. As at 30 June 1993 the Treasurer's approval had not been given to the granting of such a limit, although approval has been sought as part of the C orporation seeking an overall guarantee facility o f $6,000,000.

During the year en de d 30 June 1992, Indications were received from tw o parties advising of their Intention to consider the lodgem ent o f claims for dam ages against the Corporation. Should any such claim or claims arise the Corporation intends to vigorously d e fe n d them. Professional legal a d vice indicates that it is unlikely th a t any liability will eventuate. This professional ad vice is supported by the effluxion of tim e since the intentions were advised an d th e absence o f any further representation.

On 22 June 1993 a retail te n a n t in Bonner House served a Supreme Court writ on the Corporation In respect of alleged loss of profits due to business disruption ($114,000) a n d costs Incurred to d o with their tem porary relocation a n d premises fit out ($114,000) due to the Bonner House refurbishment. The C orporation believes It has a valid counter claim for non co m p lia n ce with lease conditions and breach of agreem ent as well as grounds to reject the claims for the alleg ed lost profits a n d costs. This review is supported by legal opinion.

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