AWB Limited - 2003 Annual Report

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2003 Consolidated AWB Limited 2003 2002 2003 2002 Notes $'000 $'000 $'000 $'000 Cash flows from operating activities Receipts from customers 2,494,079 1,923,350 141,886 241,121 Payments to suppliers and employees (1,975,985) (2,080,800) (149,147) (340,744) Repayments of grower loans 1,650,882 2,023,180 – – Loans advanced to growers (587,437) (2,383,910) – – Interest received 82,997 132,006 33,336 32,701 Borrowing costs paid (70,505) (98,102) (1,250) (4,886) Dividends received 4,604 279 42,162 62,710 Income taxes paid (54,341) (67,502) 7,620 (22,401) Net cash flows from/(used in) operating activities 23(a) 1,544,294 (551,499) 74,607 (31,499) Cash flows from investing activities Payments for property, plant and equipment (93,167) (81,740) (17,612) (28,516) Proceeds from sale of property, plant and equipment 572 747 22 747 Payment for controlled entities (net of cash acquired) 34(b) (542,765) – – – Purchases of investments (122,642) (11,428) (2,402) (21,845) Proceeds from/(placement of) short term deposits & securities (net) (25,287) 74,417 – 18,251 Net cash flows from/(used in) investing activities (783,289) (18,004) (19,992) (31,363) Cash flows from financing activities Proceeds from issues of ordinary shares 153,967 – 152,484 – Payment of share issue and listing costs (5,321) (524) (5,321) (524) Proceeds from/(repayment of) borrowings from related party (AWB National Pools) (234,944) (128,799) 3,791 5,961 Proceeds from/(repayment of) borrowings from wholly owned group – – (158,793) 98,890 Proceeds from/(repayment of) interest bearing deposits 3,711 – – – Proceeds from/(repayment of) borrowings (625,015) 768,969 – – Dividends paid (68,539) (60,145) (68,444) (60,145) Net cash flows from/(used in) financing activities (776,141) 579,501 (76,283) 44,182 Net increase/(decrease) in cash held (15,136) 9,998 (21,668) (18,680) Cash at the beginning of the financial year 69,921 59,923 23,996 42,676 Cash at the end of the financial year 23(b) 54,785 69,921 2,328 23,996 52
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation The financial report is a general purpose financial report which has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. It has been prepared on the basis of historical costs and except where stated, does not take into account fair values of non–current assets. (b) Changes in accounting policies Accounting policies have been consistently applied by each entity in the consolidated entity and are consistent with those of the previous year except for the accounting policies with respect to the provision for dividends and employee benefits. Comparative information has been repositioned or reclassified where appropriate to ensure comparability with the current reporting period. Provision for dividend The consolidated entity has adopted the new Australian Accounting Standard AASB 1044: Provisions, Contingent Liabilities and Contingent Assets which has resulted in a change in the accounting for the dividends provision. Previously, the consolidated entity recognised a provision for dividend based on the amount that was proposed or declared after the reporting date. In accordance with the requirements of the new Standard, a provision for dividends will only be recognised at the reporting date where the dividends have been declared, determined or publicly recommended prior to the reporting date. In accordance with the new Standard, no provision for dividend has been recognised for the year ended 30 September 2003. Employee benefits The consolidated entity has applied the revised AASB 1028: Employee Benefits issued June 2001 for the first time from 1 October 2002. The liability for wages and salaries, and annual leave is now calculated using the remuneration rates AWB Limited expects to pay as at each reporting date, not wage and salary rates current at reporting date. The effect of the revised policy is not material. (c) Principles of consolidation Controlled entities The financial statements of controlled entities are included from the date control commences until the date control ceases. Outside interests in the equity and results of the entities that are controlled by the company are shown as a separate item in the consolidated financial statements. Associates Associates are those entities, other than partnerships, over which the consolidated entity exercises significant influence and which are not intended for sale in the near future. In the consolidated financial statements, investments in associates are accounted for using equity accounting principles. Investments in associates are carried at the lower of the equity accounted amount and recoverable amount. The consolidated entity’s equity accounted share of the associates’ net profit or loss is recognised in the consolidated statement of financial performance from the date significant influence commences until the date significant influence ceases. Other movements in reserves are recognised directly in consolidated reserves. Joint venture operations Joint venture operations are jointly controlled by the consolidated entity. The consolidated entity’s interests in unincorporated joint ventures are brought to account by including its proportionate share of the joint ventures’ assets, liabilities and expenses and the consolidated entity’s revenue from the sale of its share of output on a line–by–line basis, from the date joint control commences to the date joint control ceases. Transactions eliminated on consolidation Unrealised gains and losses and inter–entity balances resulting from transactions with or between controlled entities are eliminated in full on consolidation. Unrealised gains resulting from transactions with associates and joint ventures, including those relating to contributions of non–monetary assets on establishment, are eliminated to the extent of the consolidated entity’s interest. Unrealised gains relating to associates and joint ventures are eliminated against the carrying amount of the investment. Unrealised losses are eliminated in the same way as unrealised gains, unless they evidence a recoverable amount impairment. AWB National Pools As in previous years, the activities of the AWB National Pools have not been recognised in the financial statements of the consolidated entity. The economic benefit from the activities of the AWB National Pools are derived by pool participants rather than the consolidated entity. (d) Revenue recognition Revenues are recognised at fair value of the consideration received net of the amount of goods and services tax payable to the Australian Taxation Office. Sales Revenue from sales made on commercial terms is recognised when title for the commodity transfers to the customer. In the case of export sales, the bill of lading (shipment) date is taken as transaction date unless title is to pass at a materially different time. Management fee revenue Management fee revenue is recognised according to when the costs of providing the services are incurred. Interest revenue Interest revenue is recognised as it accrues taking into account the effective yield of the financial asset. Underwriting fee The underwriting fee charged on loan products is a fee for the service of providing a non–recourse loan. The recourse on this loan is limited to a percentage of the estimated pool return at a 53
Page 1 and 2:
Annual Report 2003 imagine the futu
Page 3 and 4: During the past year, Australia has
Page 5 and 6: FINANCIAL PERFORMANCE SUMMARY Droug
Page 7 and 8: There are six key business streams
Page 9 and 10: chairman’s and managing director
Page 11 and 12: As a gesture of AWB's appreciation
Page 13 and 14: pool management services AWB Nation
Page 15 and 16: For the 2001/02 Pool, AWB managed a
Page 17 and 18: finance and risk management Harvest
Page 19 and 20: Through “ring fencing”, AWB was
Page 21 and 22: grain acquisition and trading Grain
Page 23 and 24: supply chain and other investments
Page 25 and 26: Children of AWB employees enjoying
Page 27 and 28: grain technology AWB Grain Technolo
Page 29 and 30: landmark Overview Landmark is Austr
Page 31 and 32: our people and systems People AWB e
Page 33 and 34: AWB has committed itself to a thoro
Page 35 and 36: Charles Stott Group General Manager
Page 37 and 38: the chairman, Mr Robert Barry and M
Page 39 and 40: Identification and Management of Si
Page 41 and 42: Birchip in Victoria and a former Vi
Page 43 and 44: Brendan Stewart Chairman, Non-execu
Page 45 and 46: international presence 43
Page 47 and 48: INNOVATION FOCUS TO DELIVER NEW OPP
Page 49 and 50: LIKELY DEVELOPMENTS AND EXPECTED RE
Page 51 and 52: DIRECTORS' MEETINGS (continued) Dir
Page 53: STATEMENT OF FINANCIAL POSITION AS
Page 57 and 58: (h) Derivatives (continued) transac
Page 59 and 60: 2. REVENUE FROM ORDINARY ACTIVITIES
Page 61 and 62: 4. TAXATION Consolidated AWB Limite
Page 63 and 64: 8. OTHER ASSETS Consolidated AWB Li
Page 65 and 66: 11. OTHER FINANCIAL ASSETS Consolid
Page 67 and 68: 13. PROPERTY, PLANT AND EQUIPMENT (
Page 69 and 70: 16. PROVISIONS Consolidated AWB Lim
Page 71 and 72: 20. OUTSIDE EQUITY INTERESTS Consol
Page 73 and 74: 24. REMUNERATION OF DIRECTORS Conso
Page 75 and 76: 27. RELATED PARTY DISCLOSURES (cont
Page 77 and 78: 28. SEGMENT INFORMATION (continued)
Page 79 and 80: 31. EMPLOYEE BENEFITS AND SUPERANNU
Page 81 and 82: 32. FINANCIAL INSTRUMENTS (continue
Page 83 and 84: 32. FINANCIAL INSTRUMENTS (continue
Page 85 and 86: 33. DEED OF CROSS GUARANTEE Pursuan
Page 87 and 88: 34. CONTROLLED ENTITIES (continued)
Page 89 and 90: 35. EARNINGS PER SHARE Consolidated
Page 91 and 92: INDEPENDENT AUDIT REPORT TO MEMBERS
Page 93 and 94: FINANCIAL CALENDAR - 2004 Annual Ge
Page 95 and 96: AWB GROUP LOCATIONS ROYCE DESIGN AW
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AWB Limited - 2003 Annual Report

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