AWB Limited - 2003 Annual Report

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2003 32. FINANCIAL INSTRUMENTS (continued) (d) Credit risk exposure Credit risk reports the loss that would be recognised if counterparties failed to perform as contracted. Recognised financial instruments The credit risk on financial assets, excluding investments, of the consolidated entity which have been recognised on the statement of financial position, is the carrying amount net of any provision for doubtful debts or counterparty risk. The consolidated entity minimises concentration of credit risk by undertaking transactions with a large number of customers and obtaining credit insurance for certain customers. Under the terms of the grower loan contracts, any distributions from the AWB National Pools are applied as repayments of the outstanding loan balance. The loans are advanced on a non-recourse basis; any shortfall on repayment is underwritten by AWB Finance Limited. Unrecognised financial instruments Credit risk on derivative contracts which have not been recognised on the statement of financial position is minimised as counterparties are recognised financial intermediaries with acceptable credit ratings. (e) Net fair values Recognised financial instruments The carrying amounts and net fair values of financial assets and financial liabilities, at balance date are as follows: Carrying amount Net fair value 2003 2002 2003 2002 $'000 $'000 $'000 $'000 Financial assets Cash assets 54,785 69,921 54,785 69,921 Receivables 1,006,482 2,137,041 1,006,482 2,137,041 Short term deposits 36,005 10,718 36,005 10,718 Financial assets – other 23,446 51,880 23,446 51,880 Shares 138,066 14,419 138,066 14,419 Total financial assets 1,258,784 2,283,979 1,258,784 2,283,979 Financial liabilities Payables 336,066 122,681 336,066 122,681 Borrowings 1,062,884 1,637,518 1,062,884 1,637,518 Financial liabilities 8,907 – 8,907 – Unearned income 9,458 120 9,458 120 Net deferred gains and losses 3,684 19,956 3,684 19,956 Total financial liabilities 1,420,999 1,780,275 1,420,999 1,780,275 Unrecognised financial instruments The net fair values of financial instruments not recognised in the statement of financial position held as at the reporting date are: Consolidated 2003 2002 $'000 $'000 Forward rate agreements – (32) Interest rate swaps (905) (1,295) Interest rate options 151 (62) Interest rate futures – – (754) (1,389) Interest rate futures and exchange traded options: The net fair value for interest rate futures and exchange traded options is calculated as the value of the variation margin on the last business day of the period. Interest rate swaps, over the counter options and forward rate agreements: The net fair value of these instruments represents the value that would be obtained in a liquid market if these positions were liquidated. 82
33. DEED OF CROSS GUARANTEE Pursuant to Australian Securities and Investments Commission Class Order 98/1418 (as amended) dated August 1998, the following wholly owned subsidiaries are relieved from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports and directors’ report: AWB Finance Limited, AWB (Australia) Limited and AWB Investments Limited. It is a condition of the Class Order that AWB Limited and each of the subsidiaries enter into a Deed of Cross Guarantee. The effect of the Deed is that AWB Limited guarantees to pay any deficiency in the event of winding up any of the wholly owned subsidiaries listed below. The subsidiaries that are parties to the Deed are: AWB Finance Limited AWB (Australia) Limited AWB GrainFlow Pty Ltd (formerly AWB Grain Centres Pty Ltd) AWB Investments Limited. AWB Investments Limited became a party to the Deed on 26 August 2003, by virtue of a Deed of Assumption. A consolidated statement of financial performance and a consolidated statement of financial position, comprising AWB Limited and controlled entities which are parties to the Deed after eliminating all transactions between parties to the Deed of Cross Guarantee, at 30 September 2003 are set out below: Consolidated 2003 2002 $'000 $'000 Summarised statement of financial performance Profit from ordinary activities before income tax expense 51,377 148,705 Income tax expense relating to ordinary activities (11,432) (42,787) Net profit from ordinary activities after income tax expense 39,945 105,918 Retained profits at the beginning of the year 68,639 31,076 Dividends recognised during the year (38,369) (68,355) Retained profits at the end of the year 70,215 68,639 Statement of financial position Current assets Cash assets 2,337 24,003 Receivables 631,273 3,242,114 Inventories 62,111 134,062 Other financial assets 49,616 50,111 Current tax assets 19,562 – Other assets 767 1,650 Total current assets 765,666 3,451,940 Non–current assets Receivables 54,711 4,085 Investments accounted for using the equity method 10,307 16,958 Other financial assets 862,734 33,923 Intangible assets 172 115 Property, plant and equipment 210,514 153,327 Deferred tax assets 26,501 26,468 Total non–current assets 1,164,939 234,876 Total assets 1,930,605 3,686,816 Current liabilities Payables 111,353 104,266 Interest bearing liabilities 863,437 2,710,288 Current tax liabilities – 9,070 Provisions 16,198 39,654 Other liabilities 5,517 19,956 Total current liabilities 996,505 2,883,234 83
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Annual Report 2003 imagine the futu
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During the past year, Australia has
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FINANCIAL PERFORMANCE SUMMARY Droug
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There are six key business streams
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chairman’s and managing director
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As a gesture of AWB's appreciation
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pool management services AWB Nation
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For the 2001/02 Pool, AWB managed a
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finance and risk management Harvest
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Through “ring fencing”, AWB was
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grain acquisition and trading Grain
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supply chain and other investments
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Children of AWB employees enjoying
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grain technology AWB Grain Technolo
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landmark Overview Landmark is Austr
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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 and 54: STATEMENT OF FINANCIAL POSITION AS
Page 55 and 56: NOTES TO AND FORMING PART OF THE FI
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: 32. FINANCIAL INSTRUMENTS (continue
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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