Annual Report 2015 · Financial statements 11 Notes to the financial statements 15 Directors’ declaration 37 Independent audit report 38 . 2 Annual report Inglewood & Districts

Inglewood & Districts Community Bank®Branch

Annual Report2015

ABN 87 123 959 375

Inglewood & Districts CommunityEnterprises Limited

Annual report Inglewood & Districts Community Enterprises Limited 1

Contents

Chairman’s report 2

Manager’s report 3

Directors’ report 4

Auditor’s independence declaration 10

Financial statements 11

Notes to the financial statements 15

Directors’ declaration 37

Independent audit report 38

Annual report Inglewood & Districts Community Enterprises Limited2

For year ending 30 June 2015

Another successful year and a $1 million milestone is within our grasp. Before the end of the current calendar year,

returns from your Community Bank® branch to our community in the form of grants, sponsorships and shareholder

dividends will exceed the $1 million mark. I congratulate and thank all involved in this achievement including our

staff, shareholders and customers. I and look forward to the next million.

Some highlights this year include:

• WehavefinancedthepurchaseofanewtruckthatwillbeusedbyHelpingHandsMissiontodistributefood

and household goods throughout much of Victoria. The Board views the relationship between our community

andHelpingHandsasasymbioticunionentirelyinkeepingwithouroriginalvisionandmission.

• TheredevelopmentoftheInglewoodTownHallisgoingaheadthanks,inpart,toour$100,000contribution.

• Wecontinuetoprovidescholarshipsforschoolleaversenteringtheirfirstyearoftertiaryeducation.

• Thegrowthofourbusinesshasbeenparalleledbygrowthinassociatedsecretarial,administrativeandmedia

duties.ConsequentlywehaveemployedKimHanlononapart-timebasistocarryoutmanyoftheseexecutive

tasks. I am delighted to report that Kim is operating in a very dedicated, thorough and professional manner.

• JillMcFarlanehasresignedfromtheBoardandretiredtoMelbourne.JillwasadiligentandthoughtfulBoard

memberandisthankedforhercontribution.WehavewelcomedDavidPetersontotheBoard.Davidcomesto

us with an employment history and a community spirit that will be of immense value.

Thanksonceagaintoourstaff,customersandshareholders.Welookforwardtobuildingonoursuccess.

Max Higgs,

Chairman.

Chairman’s report


For year ending 30 June 2015

It is with pleasure and pride that I reflect and report on the past 12 months of our business. Each year brings

differentchallengeswithinourbusinessbutwecontinuetogrow,generateprofitandcontributefundsbackintoour

local communities.

TheInglewood&DistrictsCommunity Bank® Branch has now been operating for eight years and it is very much a

storyofsuccess,havingbeenprofitableeachyearsinceopeningin2007andregulardividendsbeingpaidtoour

shareholders.

Thebusinesssizehascontinuedtogroweachyearandasat30June2015ourbranchfigureswere:

• Depositfootings $44.3million

• Lendingfootings $41.9million

• Otherbusiness $21.5million

• Totalbusiness $109.7million.

The2014/15financialyearsawtheoverallbusinessgrowfrom$106.5millionto$109.7million,agrowthof

$3.2 million for the year which is almost double the previous year’s growth.

Wecontinuetosupportandcontributetothemanyprojectsthroughourgrantsandsponsorshipsandcelebrate

thatweareabletoassisttheminachievingtheirdesiredresultswith$102,941beingtheamountfundedfor

the2014/15year.Overallcontributionssinceopeningin2007nowstandatprojects/sponsorship$688,394,

scholarships$30,000plus$100,000committedtotherestorationofInglewoodTownHalland$100,000

committedtoSerpentineRecreationReserve,atotalof$918,394.

Wearelookingforwardtocelebratingourfirst$1millionincontributions.Whatanamazingresultcreatedpurely

through our customers supporting us with their business. Your banking can make a difference so if you are not

already a customer please consider becoming one.

ThebranchisfortunatetohaveagreatteaminJon(MobileRelationshipManager),Suzanne(Customer

RelationshipOfficer),Stewart,RuthandNat(CustomerServiceOfficers).Theyareallwellversedintheirrolesand

dedicated to the success of our business, our customers and the community.

FinallyIwouldliketothankthebranchstaff,LeighRandallandtheWedderburnagencystaff,BoardofDirectors,

regionalofficestaff,shareholdersandcustomers.Thesewonderfulresultscouldnotbeachievedwithoutyour

continued support.

I look forward to the year ahead and the opportunity to further invest in the success of our business and our

community.

Jill Burdett

Branch Manager.

Manager’sreport


Directors’reportForthefinancialyearended30June2015

Yourdirectorssubmitthefinancialstatementsofthecompanyforthefinancialyearended30June2015.

Directors

Thenamesanddetailsofthecompany’sdirectorswhoheldofficeduringorsincetheendofthefinancialyear:

Maxwell Charles Higgs

Chairman

GeneralMedicalPractitioner

GraduatedMBBSUniversityofMelbournein1981.HasworkedasaGeneralPractitionerintheareaforthe

past30years.Maxserved3yearsasCouncillorfortheInglewoodRidingShireofLoddon,previouslyamember

ofInglewood&DistrictHealthServicesBoardofManagement.

Chairman,AuditCommittee&HumanResourcesCommittee

Interest in shares: 3,001

Kenneth John Canfield

Treasurer

PrimaryProducer

HeldexecutivepositionswiththeInglewoodGolfandBowlsClubs,MemberofSalisburyWestLandcareGroup

andmemberofSalisbury/PowlettFireBrigade.Farmedintheareaforover50years.

Treasurer, Governance, Audit

Interests in shares: 1,001

Kim Hanlon

Secretary

Manager&ExecutiveOfficer

KimiscurrentlytheExecutiveOfficerofourorganisationandistheManageroftheInglewoodCommunity

NeighbourhoodHouse.HerqualificationsincludeaDiplomaofBusinessandCertificateIVinWorkplace

AssessmentandTraining.KimhasanextensivecareerinOfficeAdministrationandBookkeeping.Sheisthe

SecretaryandTreasureroftheInglewoodTourismandDevelopmentCommitteeandisastrongadvocatefor

CommunityDevelopmentandSocialJustice.KimisagraduateoftheLoddonMurrayCommunityLeadership

Programwhichshecompletedin2010.

MinutetakerofSponsorships,GrantsandMarketingSub-Committee

Interestinshares:Nil

Andrew Richard Smith

Director

OperationsManager

AndrewistheOperationsManagerforalocalfertilizercompany.HeservesontheBoardofStMary’sPrimary

SchoolandisamemberoftheInglewoodCountryFireAuthoritywhereheholdsthepositionofLieutenant.He

isalsotheCFALoddonSouthGroupDeputyGroupOfficer.

MarketingandSponsorshipcommittee



Directors’report(continued)

Directors (continued)

Simon Patrick Tuohey

Director

PrimaryProducer

CurrentSecretaryforSerpentineCFA,memberofSerpentinePlanCommittee,BearsLagoonSerpentine

FootballClubCommittee(previouslypresident)andmemberofSerpentineTennisClub.

Interests in shares: 2500

Colleen Mary Condliffe

Director

PrimaryProducer/LoddonShireCouncillor

ColleenhasaBio-ChemistryDegreeandisapartofarangeofcommunityorganisations.Sheisaboard

memberoftheWomenHealthLoddonMallee,theRuralFinancialCounsellingServiceandtheInglewood

CommunityNeighbourhoodHouse.SheisalsoaLoddonShireCouncillorandamemberoftheNewbridgeCWA

andtheSalisburyWestLandcareGroup.

DingeeBushNursingCentreBoardandMarketingCommittee


David Allan Edwards

Director

MangerandBusinessOwner

Dave(togetherwithwifeLeanne)isco-ownerandManagerofBridgewaterFarmware,aruralsuppliesand

servicesbusinessinBridgewater.DaveisalsoPresidentoftheSchoolCouncilatBridgewateronLoddon

PrimarySchoolandVicePresidentoftheBridgewateronLoddonDevelopmentCommittee.Davidhasatertiary

qualificationinengineering,ProjectandOperationalManagement.PriortorunningFarmware,heldvarious

corporateOperationsManagementrolesoverthepast15years.

HRSubCommittee


Linda Joy Younghusband

Director

FarmingAssistant/MedicalReceptionist

Previouslyco-owneroffamilybusiness,WilliamsonStreet24HourStoreinBendigofor12years.Currently

runfamilyfarmaswellasacasualmedicalreceptionist.MemberoftheInglewoodPrimarySchoolParents

AssociationparticipatingastheSecretaryandTreasurer.CurrentlyamemberoftheWedderburnCollege

ParentsAssociation,holdthepositionofInglewoodSchoolCouncillorandactivelyinvolvedinWedderburn

sportinggroups,includingbeingsecretary/treasureratArnoldCricketClub.

Marketing&SponsorshipCommitteeandScholarshipselection


Stewart Dean Luckman

Director

Banker

PreviouslyemployedasaFlourMilleratLauckeFlourMill.CurrentlyemployedasaBankerattheInglewood&

DistrictsCommunity Bank®Branch.MemberoftheInglewoodLionsClub,committeememberoftheInglewood

ChristmasCarolsevent,memberoftheAustraliaDaycelebrations,memberoftheInglewoodPrimarySchool

ParentsAssociation,memberofInglewood&BridgewaterMen’sShedaswellasbeingasocialmemberofthe

InglewoodandBridgewaterRSLandaCentralUmpirefortheLoddonValleyFootballLeague.

Sponsorship&MarketingCommittee




Directors (continued)

Dale Thomas Jackson

Director

TechnicalOfficerEngineer

TechnicalDesignOfficerattheShireofLoddoninfrastructureDepartment.DiplomaofEngineering,Vice

PresidentoftheWedderburnBowlsClub,VicePresidentofWedderburnKorongvaleRSLInc,DonaldsonPark

CommitteeMemberandWedderburnCommunity Bank®BranchSteeringCommitteeMember.AlsoaBrick

layer, concreter and shearer.

Marketing,InglewoodHallHubProject


Jill McFarlane

Director(Resigned28April2015)

Retired

Secretaryoffamilyfarmingbusiness.ChairofManagementBoardofHeritageIndustriesMtGambier,Audit

CommitteeofNCCMABendigoandWedderburnConservationManagementNetwork.MemberofHeritage

Industriesfor21years(sinceestablishment).AlsopreviouslyBoardmemberforNorthCentralCatchment

ManagementAuthority.PreviouslyCouncillorforVictorianEnvironmentalAssessmentCouncil.Currentlymember

ofvariouscommunitygroupsandassociations.Previousemploymenthistoryincludes26yearsasmedical

social worker in regional hospitals.

AuditCommittee,Marketing&Sponsorship


Directorswereinofficeforthisentireyearunlessotherwisestated.

Nodirectorshavematerialinterestsincontractsorproposedcontractswiththecompany.

Company Secretary

ThecompanysecretaryisKimHanlon.KimwasappointedtothepositionofSecretaryon26November2013.

KimiscurrentlytheExecutiveOfficerofourorganisationandistheManageroftheInglewoodCommunity

NeighbourhoodHouse.HerqualificationsincludeaDiplomaofBusinessandCertificateIVinWorkplace

AssessmentandTraining.KimhasanextensivecareerinOfficeAdministrationandBookkeeping.Sheisthe

SecretaryandTreasureroftheInglewoodTourismandDevelopmentCommitteeandisastrongadvocatefor

CommunityDevelopmentandSocialJustice.KimisagraduateoftheLoddonMurrayCommunityLeadership

Programwhichshecompletedin2010.

Principal Activities

TheprincipalactivitiesofthecompanyduringthefinancialyearwerefacilitatingCommunity Bank® services under

managementrightstooperateafranchisedbranchofBendigoandAdelaideBankLimited.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringtheyear.

Operating results

Operationshavecontinuedtoperforminlinewithexpectations.Theprofitofthecompanyforthefinancialyear

after provision for income tax was:

Year ended 30 June 2015$

Year ended 30 June 2014$

38,213 13,274



Remuneration report

Directors’remuneration

For the year ended 30 June 2015 the directors received total remuneration including superannuation, as follows:

$

Director,KimHanloniscontractedtotheBoardtoperformtheroleasExecutiveOfficer.Her

services are provide a hourly rate agreed with the Board, hours and times of service varies

inaccordancewiththerequirementsneededtofulfilherrole.DuringthefinancialyearKim

invoiced the company:

5,606

Directors’shareholdings

Balance at start of the year

Changes during the

year

Balance at end of the year

MaxwellCharlesHiggs 3,001 - 3,001

KennethJohnCanfield 1,001 - 1,001

KimHanlon - - -

Andrew Richard Smith 1,002 - 1,001

SimonPatrickTuohey 2,001 499 2,500

ColleenMaryCondliffe 1 1 -

DavidAllanEdwards 500 - 500

LindaJoyYounghusband 500 - 500

StewartDeanLuckman - - -

DaleThomasJackson 501 - 501

JillMcFarlane(Resigned28April2015) 7,500 6,000 1,500

Dividends

Year ended 30 June 2015

Cents $

-Dividendspaidintheyear 6 30,325

Significant changes in the state of affairs

Intheopinionofthedirectorstherewerenosignificantchangesinthestateofaffairsofthecompanythat

occurredduringthefinancialyearunderreviewnototherwisedisclosedinthisreportorthefinancialstatements.



Events since the end of the financial year

Therearenomattersorcircumstancesthathavearisensincetheendofthefinancialyearthathavesignificantly

affectedormaysignificantlyaffecttheoperationsofthecompanytheresultsofthoseoperationsorthestateof

affairs of the company, in future years.

Likely developments

The company will continue its policy of facilitating banking services to the community.

Environmental regulation

Thecompanyisnotsubjecttoanysignificantenvironmentalregulation.

Indemnification and insurance of directors and officers

Thecompanyhasindemnifiedalldirectorsandthemanagerinrespectofliabilitiestootherpersons(otherthan

thecompanyorrelatedbodycorporate)thatmayarisefromtheirpositionasdirectorsormanagerofthecompany

except where the liability arises out of conduct involving the lack of good faith.

Disclosureofthenatureoftheliabilityandtheamountofthepremiumisprohibitedbytheconfidentialityclauseof

the contract of insurance. The company has not provided any insurance for an auditor of the company or a related

body corporate.

Directors’ meetings

The number of directors’ meetings attended by each of the directors of the company during the year were:

Board Meetings Attended

Committee Meetings Attended

Audit MarketingHuman

Resources

Eligible Attended Eligible Attended Eligible Attended Eligible Attended

MaxwellCharlesHiggs 12 12 1 1 - - 4 4

KennethJohnCanfield 12 10 1 1 - - - -

KimHanlon 12 11 1 - 5 5 - -

Andrew Richard Smith 12 8 - - 12 8 1 1

SimonPatrickTuohey 12 9 - - - - - -

Colleen Condliffe 12 10 - - - - 4 4

DavidEdwards 12 11 - - - - 4 4

LindaYounghusband 12 12 - - 12 12 - -

StewartDeanLuckman 12 12 - - 12 12 - -

DaleThomasJackson 12 7 - - - - - -

JillMcFarlane(Resigned28April2015) 8 8 - - 8 8 - -



Proceedings on behalf of the company

NopersonhasappliedtotheCourtundersection237oftheCorporationsAct2001forleavetobringproceedings

on behalf of the company, or to intervene in any proceedings to which the company is a party, for the purpose of

taking responsibility on behalf of the company for all or part of those proceedings.

NoproceedingshavebeenbroughtorintervenedinonbehalfofthecompanywithleaveoftheCourtundersection

237oftheCorporationsAct2001.

Non audit services

The company may decide to employ the auditor on assignments additional to their statutory duties where the

auditor’sexpertiseandexperiencewiththecompanyareimportant.Detailsoftheamountspaidorpayabletothe

auditor(AndrewFrewinStewart)forauditandnonauditservicesprovidedduringtheyeararesetoutinthenotes

to the accounts.

The board of directors has considered the position, in accordance with the advice received from the audit

committeeandissatisfiedthattheprovisionofthenon-auditservicesiscompatiblewiththegeneralstandardof

independence for auditors imposed by the Corporations Act 2001.

Thedirectorsaresatisfiedthattheprovisionofnon-auditservicesbytheauditor,assetoutinthenotesdidnot

compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

• allnon-auditserviceshavebeenreviewedbytheauditcommitteetoensuretheydonotimpactonthe

impartialityandobjectivityoftheauditor

• noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110

CodeofEthicsforProfessionalAccountants,includingreviewingorauditingtheauditor’sownwork,actingin

amanagementoradecision-makingcapacityforthecompany,actingasadvocateforthecompanyorjointly

sharing economic risk and rewards.

Auditor’s independence declaration

Acopyoftheauditor’sindependencedeclarationasrequiredundersection307CoftheCorporationsAct2001is

set out on page 10.

SignedinaccordancewitharesolutionoftheboardofdirectorsatInglewood,Victoriaon27August2015.

Maxwell Charles Higgs,

Chairman


Auditor’s independence declaration


Financial statementsStatementofProfitorLossandOtherComprehensiveIncome for the year ended 30 June 2015

Notes 2015 2014 $ $

Revenuefromordinaryactivities 4 835,478 819,229

Employeebenefitsexpense (389,462) (397,181)

Charitabledonations,sponsorship,advertisingandpromotion (181,173) (181,952)

Occupancyandassociatedcosts (26,749) (28,892)

Systemscosts (21,171) (21,139)

Depreciationandamortisationexpense 5 (22,919) (23,914)

Generaladministrationexpenses (139,341) (147,275)

Profit before income tax expense 54,663 18,876

Incometaxexpense 6 (16,450) (5,602)

Profit after income tax expense 38,213 13,274

Total comprehensive income for the year 38,213 13,274

Earnings per share for profit attributable to the ordinary

shareholders of the company: ¢ ¢

Basicearningspershare 20 7.56 2.63

Theaccompanyingnotesformpartofthesefinancialstatements.


Financial statements (continued)

Balance Sheet as at 30 June 2015

Notes 2015 2014 $ $

ASSETS

Current Assets

Cashandcashequivalents 7 212,772 211,571

Tradeandotherreceivables 8 39,874 40,299

Currenttaxasset 11 - 7,184

Total Current Assets 252,646 259,054

Non-Current Assets

Property,plantandequipment 9 126,319 91,671

Intangibleassets 10 138,573 152,438

Deferredtaxasset 11 974 -

Total Non-Current Assets 265,866 244,109

Total Assets 518,512 503,163

LIABILITIES

Current Liabilities

Tradeandotherpayables 12 10,116 7,188

Currenttaxliabilities 11 6,113 -

Total Current Liabilities 16,229 7,188

Non-Current Liabilities

Deferredtaxliabilities 11 - 1,580

Total Non-Current Liabilities - 1,580

Total Liabilities 16,229 8,768

Net Assets 502,283 494,395

Equity

Issuedcapital 13 488,516 488,516

Retainedearnings 14 13,767 5,879

Total Equity 502,283 494,395




Statement of Changes in Equity for the year ended 30 June 2015

Issued Retained Total capital earnings equity $ $ $

Balance at 1 July 2013 488,516 22,930 511,446

Total comprehensive income for the year - 13,274 13,274

Transactions with owners in their capacity as owners:

Sharesissuedduringperiod - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - (30,325) (30,325)

Balance at 30 June 2014 488,516 5,879 494,395

Balance at 1 July 2014 488,516 5,879 494,395

Total comprehensive income for the year - 38,213 38,213

Transactions with owners in their capacity as owners:

Sharesissuedduringperiod - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - (30,325) (30,325)

Balance at 30 June 2015 488,516 13,767 502,283




Statement of Cash Flows for the year ended 30 June 2015

Notes 2015 2014 $ $

Cash flows from operating activities

Receiptsfromcustomers 925,634 862,145

Paymentstosuppliersandemployees (850,480) (821,727)

Interestreceived 7,076 8,134

Incometaxespaid (5,707) (13,846)

Net cash provided by operating activities 15 76,523 34,706

Cash flows from investing activities

Paymentsforproperty,plantandequipment (50,770) (13,065)

Proceedsofproperty,plantandequipment 5,773 -

Net cash provided by/(used in) investing activities (44,997) (13,065)

Cash flows from financing activities

Dividendspaid (30,325) (30,325)

Net cash provided by/(used in) financing activities (30,325) (30,325)

Net increase/(decrease) in cash held 1,201 (8,684)

Cashandcashequivalentsatthebeginningofthefinancialyear 211,571 220,255

Cash and cash equivalents at the end of the financial year 7(a) 212,772 211,571



NotestothefinancialstatementsFor year ended 30 June 2015

Note1.Summaryofsignificantaccountingpolicies

a) Basis of preparation

ThesegeneralpurposefinancialstatementshavebeenpreparedinaccordancewithAustralianAccounting

Standards and Interpretations issued by the Australian Accounting Standard Boards and the Corporations Act

2001.Thecompanyisafor-profitentityforthepurposeofpreparingthefinancialstatements.

Compliance with IFRS

ThesefinancialstatementsandnotescomplywithInternationalFinancialReportingStandards(IFRS)asissuedby

theInternationalAccountingStandardsBoard(IASB).

Critical accounting estimates

Thepreparationofthefinancialstatementsrequirestheuseofcertaincriticalaccountingestimates.Italso

requiresmanagementtoexerciseitsjudgementintheprocessofapplyingthecompany’saccountingpolicies.

Theseareasinvolvingahigherdegreeofjudgementorcomplexities,orareaswhereassumptionsandestimates

aresignificanttothefinancialstatementsaredisclosedinnote3.

Historicalcostconvention

Thefinancialstatementshavebeenpreparedunderthehistoricalcostconventiononanaccrualsbasisas

modifiedbytherevaluationoffinancialassetsandliabilitiesatfairvaluethroughprofitorlossandwherestated,

currentvaluationsofnon-currentassets.Costisbasedonthefairvaluesoftheconsiderationgiveninexchange

for assets.

Comparativefigures

WhererequiredbyAustralianAccountingStandardscomparativefigureshavebeenadjustedtoconformwith

changesinpresentationforthecurrentfinancialyear.

Application of new and amended accounting standards

The following amendments to accounting standards and a new interpretation issued by the Australian Accounting

StandardsBoard(AASB)becamemandatorilyeffectiveforaccountingperiodsbeginningonorafter1July2014,

andarethereforerelevantforthecurrentfinancialyear.

• AASB2012-3AmendmentstoAustralianAccountingStandards(AASB132)–OffsettingFinancialAssetsand

FinancialLiabilities.

• AASB2013-3AmendmentstoAASB136–RecoverableAmountDisclosuresforNon-FinancialAssets.

• AASB2013-4AmendmentstoAustralianAccountingStandards(AASB139)–NovationofDerivativesand

ContinuationofHedgeAccounting.

• AASB2013-5AmendmentstoAustralianAccountingStandards(AASB10)–InvestmentEntities.

• AASB2014-1AmendmentstoAustralianAccountingStandards(PartA:AnnualImprovements2010-2012and

2011-2013Cycles).

• AASB2014-1AmendmentstoAustralianAccountingStandards(PartB:DefinedBenefitPlans:Employee

ContributionsAmendmentstoAASB119).


Notestothefinancialstatements(continued)

Note1.Summaryofsignificantaccountingpolicies(continued)

a) Basis of preparation (continued)

Applicationofnewandamendedaccountingstandards(continued)

• Interpretation21Levies.

• AASB1031Materiality,AASB2013-9AmendmentstoAustralianAccountingStandards–Conceptual

Framework,MaterialityandFinancialInstruments(PartB:Materiality),AASB2014-1AmendmentstoAustralian

AccountingStandards(PartC:Materiality).

NoneoftheamendmentstoaccountingstandardsorthenewinterpretationissuedbytheAustralianAccounting

StandardsBoard(AASB)thatbecamemandatorilyeffectiveforaccountingperiodsbeginningonorafter1July

2014,materiallyaffectedanyoftheamountsrecognisedinthecurrentperiodoranypriorperiodandarenotlikely

to affect future periods.

The following accounting standards and interpretations issued by the Australian Accounting Standards Board

(AASB)becomeeffectiveinfutureaccountingperiods.

Effective for annual reporting periods beginning on or after

AASB9FinancialInstruments,andtherelevantamendingstandards. 1January2018

AASB15RevenuefromContractswithCustomersandAASB2014-5

Amendments to Australian Accounting Standards arising from AASB 15.1January2017

AASB2014-3AmendmentstoAustralianAccountingStandards–Accounting

forAcquisitionsofInterestsinJointOperations.1January2016

AASB2014-4AmendmentstoAustralianAccountingStandards–Clarification

ofAcceptableMethodsofDepreciationandAmortisation.1January2016

AASB2014-6AmendmentstoAustralianAccountingStandards–Agriculture:

BearerPlants.1January2016

AASB2014-9AmendmentstoAustralianAccountingStandards–Equity

MethodinSeparateFinancialStatements.1January2016

AASB2014-10AmendmentstoAustralianAccountingStandards–Sale

or Contribution of Assets between an Investor and its Associate or Joint

Venture.

1January2016

AASB2015-1AmendmentstoAustralianAccountingStandards–Annual

ImprovementstoAustralianAccountingStandards2012-2014Cycle.1January2016

AASB2015-2AmendmentstoAustralianAccountingStandards–Disclosure

Initiative: Amendments to AASB 101.1January2016

AASB2015-3AmendmentstoAustralianAccountingStandardsarisingfrom

theWithdrawalofAASB1031Materiality.1 July 2015

AASB2015-4AmendmentstoAustralianAccountingStandards–Financial

ReportingRequirementsforAustralianGroupswithaForeignParent.1 July 2015

AASB2015-5AmendmentstoAustralianAccountingStandards–Investment

Entities: Applying the Consolidation Exception.1January2016




a) Basis of preparation (continued)

Applicationofnewandamendedaccountingstandards(continued)

The company has not elected to apply any accounting standards or interpretations before their mandatory

operativedatefortheannualreportingperiodbeginning1July2014.Thereforetheabovementionedaccounting

standards or interpretations have no impact on amounts recognised in the current period or any prior period.

Economicdependency-BendigoandAdelaideBankLimited

ThecompanyhasenteredintoafranchiseagreementwithBendigoandAdelaideBankLimitedthatgovernsthe

management of the Community Bank® branch at Inglewood, Victoria.

ThebranchoperatesasafranchiseofBendigoandAdelaideBankLimited,usingthename“BendigoBank”and

thelogoandsystemofoperationsofBendigoandAdelaideBankLimited.ThecompanymanagestheCommunity

Bank®branchonbehalfofBendigoandAdelaideBankLimited,howeveralltransactionswithcustomersconducted

through the Community Bank® branch are effectively conducted between the customers and Bendigo and Adelaide

BankLimited.

AlldepositsaremadewithBendigoandAdelaideBankLimited,andallpersonalandinvestmentproductsare

productsofBendigoandAdelaideBankLimited,withthecompanyfacilitatingtheprovisionofthoseproducts.All

loans,leasesorhirepurchasetransactions,issuesofnewcreditordebitcards,temporaryorbridgingfinanceand

any other transaction that involves creating a new debt, or increasing or changing the terms of an existing debt

owedtoBendigoandAdelaideBankLimited,mustbeapprovedbyBendigoandAdelaideBankLimited.Allcredit

transactionsaremadewithBendigoandAdelaideBankLimited,andallcreditproductsareproductsofBendigo

andAdelaideBankLimited.

The company promotes and sells the products and services, but is not a party to the transaction.

Thecreditrisk(i.e.theriskthatacustomerwillnotmakerepayments)isfortherelevantBendigoandAdelaide

BankLimitedentitytobearaslongasthecompanyhascompliedwiththeappropriateproceduresandrelevant

obligations and has not exercised a discretion in granting or extending credit.

BendigoandAdelaideBankLimitedprovidessignificantassistanceinestablishingandmaintainingtheCommunity

Bank® branch franchise operations. It also continues to provide ongoing management and operational support

and other assistance and guidance in relation to all aspects of the franchise operation, including advice in relation

to:

• adviceandassistanceinrelationtothedesign,layoutandfitoutoftheCommunity Bank® branch

• trainingforthebranchmanagerandotheremployeesinbanking,managementsystemsandinterfaceprotocol

• methodsandproceduresforthesaleofproductsandprovisionofservices

• securityandcashlogisticcontrols

• calculationofcompanyrevenueandpaymentofmanyoperatingandadministrativeexpenses

• theformulationandimplementationofadvertisingandpromotionalprograms

• salestechniquesandpropercustomerrelations.

The following is a summary of the material accounting policies adopted by the company in the preparation of the

financialstatements.Theaccountingpolicieshavebeenconsistentlyapplied,unlessotherwisestated.




b) Revenue

Revenue is recognised when the amount of revenue can be reliably measured, it is probable that future economic

benefitswillflowtothecompanyandanyspecificcriteriahavebeenmet.Interestandfeerevenueisrecognised

when earned. The gain or loss on disposal of property, plant and equipment is recognised on a net basis and is

classifiedasincomeratherthanrevenue.AllrevenueisstatednetoftheamountofGoodsandServicesTax(GST).

Revenue calculation

OvertheperiodfromSeptember2013toFebruary2015,BendigoandAdelaideBankLimitedconducteda

review of the Community Bank®model,knownas‘ProjectHorizon’.Thiswasconductedinconsultationwiththe

Community Bank®network.TheobjectiveofthereviewwastodevelopasharedvisionoftheCommunity Bank®

model that positions it for success now and for the future.

The outcome of that review is that the fundamental franchise model and community participation remain

unchanged. Changes to be implemented over a three year period reflect a number of themes, including a culture of

innovation,agilityandflexibility,networkcollaboration,directorandstaffdevelopmentandasustainablefinancial

model.ThiswillincludechangestothefinancialreturnforCommunity Bank®companiesfrom1July2016.A

funds transfer pricing model will be used for the method of calculation of the cost of funds, deposit return and

margin.Allrevenuepaidoncorebankingproductswillbethroughmarginshare.Marginoncorebankingproducts

willbesharedona50/50basis.

Thefranchiseagreementprovidesthatthreeformsofrevenuemaybeearnedbythecompany–margin,

commissionandfeeincome.BendigoandAdelaideBankLimiteddecidestheformofrevenuethecompanyearns

on different types of products and services.

The revenue earned by the company is dependent on the business that it generates. It may also be affected by

other factors, such as economic and local conditions, for example, interest rates.

Core banking products

BendigoandAdelaideBankLimitedhasidentifiedsomeBendigoBankGroupproductsandservicesas‘core

bankingproducts’.Itmaychangetheproductsandserviceswhichareidentifiedascorebankingproductsbygiving

the company at least 30 days’ notice. Core banking products currently include Bendigo Bank branded home loans,

term deposits and at call deposits.

Margin

Marginisarrivedatthroughthefollowingcalculation:

• Interestpaidbycustomersonloanslessinterestpaidtocustomersondeposits,

• plusanydepositreturnsi.e.interestreturnappliedbyBendigoandAdelaideBankLimitedforadeposit,

• minusanycostsoffundsi.e.interestappliedbyBendigoandAdelaideBankLimitedtofundaloan.

Note:Inverysimplifiedterms,currently,depositreturnmeanstheinterestBendigoandAdelaideBankLimited

gets when it invests the money the customer deposits with it. The cost of funds means the interest Bendigo and

AdelaideBankLimitedpayswhenitborrowsthemoneytogiveacustomeraloan.From1July2016,bothwill

meanthecostforBendigoandAdelaideBankLimitedtoborrowthemoneyinthemarket.

Productsandservicesonwhichmarginispaidincludevariableratedepositsandvariableratehomeloans.From

1July2016,examplesincludeBendigoBankbrandedatcalldeposits,termdepositsandhomeloans.




b) Revenue (continued)

Margin(continued)

For those products and services on which margin is paid, the company is entitled to a share of the margin earned

byBendigoandAdelaideBankLimited(i.e.incomeadjustedforBendigoandAdelaideBankLimited’sinterest

expenseandinterestincomereturn).However,ifthisreflectsaloss,thecompanyincursashareofthatloss.

Commission

Commission is a fee paid for products and services sold. It may be paid on the initial sale or on an ongoing basis.

Commission is payable on the sale of an insurance product such as home contents. Examples of products and

servicesonwhichongoingcommissionsarepaidincludeleasingandSandhurstTrusteesLimitedproducts.This

currentlyalsoincludesBendigoBankbrandedfixedratehomeloansandtermdepositsofmorethan90days,but

thesewillbecomemarginproductsfrom1July2016.

Fee income

Fee income is a share of what is commonly referred to as ‘bank fees and charges’ charged to customers by

Bendigo Bank Group entities including fees for loan applications and account transactions.

Abilitytochangefinancialreturn

Underthefranchiseagreement,BendigoandAdelaideBankLimitedmaychangetheformandamountoffinancial

return that the company receives. The reasons it may make a change include changes in industry or economic

conditionsorchangesinthewayBendigoandAdelaideBankLimitedearnsrevenue.

The change may be to the method of calculation of margin, the amount of margin, commission and fee income or

a change of a margin to a commission or vice versa. This may affect the amount of revenue the company receives

on a particular product or service. The effect of the change on the revenue earned by the company is entirely

dependent on the change.

The change may be to the method of calculation of margin, the amount of margin, commission and fee income or

a change of a margin to a commission or vice versa. This may affect the amount of revenue the company receives

on a particular product or service. The effect of the change on the revenue earned by the company is entirely

dependent on the change.

IfBendigoandAdelaideBankLimitedmakesachangetothemarginorcommissiononcorebankingproducts

and services, it must not reduce the margin and commission the company receives on core banking products and

servicesBendigoandAdelaideBankLimitedattributestothecompanytolessthan50%(onanaggregatebasis)

ofBendigoandAdelaideBankLimited’smarginatthattime.Forotherproductsandservices,thereisnorestriction

onthechangeBendigoandAdelaideBankLimitedmaymake.

BendigoandAdelaideBankLimitedmustgivethecompany30days’noticebeforeitchangestheproductsand

services on which margin, commission or fee income is paid, the method of calculation of margin and the amount

of margin, commission or fee income.

Monitoringandchangingfinancialreturn

BendigoandAdelaideBankLimitedmonitorsthedistributionoffinancialreturnbetweenCommunity Bank®

companiesandBendigoandAdelaideBankLimitedonanongoingbasis.

Overall,BendigoandAdelaideBankLimitedhasmadeitclearthattheCommunity Bank® model is based on the

principle of shared reward for shared effort. In particular, in relation to core banking products and services, the aim

istoachieveanequalshareofBendigoandAdelaideBankLimited’smargin.




b) Revenue (continued)

Monitoringandchangingfinancialreturn(continued)

AsdiscussedaboveinrelationtoProjectHorizon,amongotherthings,therewillbechangesinthefinancialreturn

for Community Bank®companiesfrom1July2016.Thisincludes50%shareofmarginoncorebankingproducts,

all core banking products become margin products and a funds transfer pricing model will be used for the method

of calculation of the cost of funds, deposit return and margin.

c) Income tax

Current tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the

taxableprofitorlossfortheperiod.Itiscalculatedusingtaxratesandtaxlawsthathavebeenenactedor

substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or

asset)totheextentthatitisunpaid(orrefundable).

Deferredtax

Deferredtaxisaccountedforusingthebalancesheetliabilitymethodontemporarydifferencesarisingfrom

differencesbetweenthecarryingamountofassetsandliabilitiesinthefinancialstatementsandthecorresponding

tax base of those items.

Inprinciple,deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences.Deferredtaxassets

arerecognisedtotheextentthatitisprobablethatsufficienttaxableamountswillbeavailableagainstwhich

deductibletemporarydifferencesorunusedtaxlossesandtaxoffsetscanbeutilised.However,deferredtax

assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial

recognitionofassetsandliabilities(otherthanasaresultofabusinesscombination)whichaffectsneither

taxableincomenoraccountingprofit.Furthermore,adeferredtaxliabilityisnotrecognisedinrelationtotaxable

temporary differences arising from goodwill.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiod(s)when

theassetandliabilitygivingrisetothemarerealisedorsettled,basedontaxrates(andtaxlaws)thathavebeen

enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities reflects the tax

consequences that would follow from the manner in which the consolidated entity expects, at the reporting date, to

recover or settle the carrying amount of its assets and liabilities.

Deferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrenttaxand

when the balances relate to taxes levied by the same taxation authority and the company entity intends to settle

its tax assets and liabilities on a net basis.

Current and deferred tax for the period

CurrentanddeferredtaxisrecognisedasanexpenseorincomeintheStatementofProfitorLossandOther

Comprehensive Income, except when it relates to items credited or debited to equity, in which case the deferred

tax is also recognised directly in equity, or where it arises from initial accounting for a business combination, in

which case it is taken into account in the determination of goodwill or excess.




d) Employee entitlements

Provisionismadeforthecompany’sliabilityforemployeebenefitsarisingfromservicesrenderedbyemployees

tobalancedate.Employeebenefitsthatareexpectedtobesettledwithinoneyearhavebeenmeasuredatthe

amountsexpectedtobepaidwhentheliabilityissettled,plusrelatedon-costs.Employeebenefitspayablelater

than one year have been measured at the present value of the estimated future cash outflows to be made for

thosebenefits.

Thecompanycontributestoadefinedcontributionplan.Contributionstoemployeesuperannuationfundsare

charged against income as incurred.

e) Cash and cash equivalents

For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks and investments in

money market instruments, net of outstanding bank overdrafts. Bank overdrafts are shown within borrowings in

current liabilities on the Balance Sheet.

f) Trade receivables and payables

Receivablesarecarriedattheiramountsdue.Thecollectabilityofdebtsisassessedatbalancedateandspecific

provisionismadeforanydoubtfulaccounts.Liabilitiesfortradecreditorsandotheramountsarecarriedatcost

that is the fair value of the consideration to be paid in the future for goods and services received, whether or not

billed to the company.

g) Property, plant and equipment

Plantandequipment,leaseholdimprovementsandequipmentunderfinanceleasearestatedatcostless

accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition

of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined

by discounting the amounts payable in the future to their present value as at the date of acquisition.

Depreciationisprovidedonproperty,plantandequipment,includingfreeholdbuildingsbutexcludingland.

Depreciationiscalculatedonastraightlinebasissoastowriteoffthenetcostofeachassetoveritsexpected

usefullifetoitsestimatedresidualvalue.Leaseholdimprovementsaredepreciatedattherateequivalentto

the available building allowance using the straight line method. The estimated useful lives, residual values and

depreciation method are reviewed at the end of each annual reporting period.

The following estimated useful lives are used in the calculation of depreciation:

• leaseholdimprovements 40years

• plantandequipment 2.5-40years

• furnitureandfittings 4-40years

h) Intangibles

ThefranchisefeepaidtoBendigoandAdelaideBankLimitedhasbeenrecordedatcostandisamortisedona

straight line basis over the life of the franchise agreement.

TherenewalprocessingfeepaidtoBendigoandAdelaideBankLimitedwhenrenewingthefranchiseagreement

has also been recorded at cost and is amortised on a straight line basis over the life of the franchise agreement.




i) Payment terms

Receivablesandpayablesarenoninterestbearingandgenerallyhavepaymenttermsofbetween30and90days.

j) Borrowings

All loans are initially measured at the principal amount. Interest is recognised as an expense as it accrues.

k) Financial instruments

Recognition and initial measurement

Financialinstruments,incorporatingfinancialassetsandfinancialliabilitiesarerecognisedwhentheentity

becomes a party to the contractual provisions of the instrument.

Financial instruments are initially measured at fair value plus transaction costs. Financial instruments are

classifiedandmeasuredassetoutbelow.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is

transferredtoanotherpartywherebytheentitynolongerhasanysignificantcontinuinginvolvementintherisks

andbenefitsassociatedwiththeasset.

Classificationandsubsequentmeasurement

(i) Loansandreceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenot

quoted in an active market and are subsequently measured at amortised cost using the effective interest rate

method.

(ii) Held-to-maturityinvestments

Held-to-maturityinvestmentsarenon-derivativefinancialassetsthathavefixedmaturitiesandfixedor

determinable payments, and it is the entity’s intention to hold these investments to maturity. They are

subsequently measured at amortised cost using the effective interest rate method.

(iii)Available-for-salefinancialassets

Available-for-salefinancialassetsarenon-derivativefinancialassetsthatareeithernotsuitabletobeclassified

intoothercategoriesoffinancialassetsduetotheirnature,ortheyaredesignatedassuchbymanagement.

Theycompriseinvestmentsintheequityofotherentitieswherethereisneitherafixedmaturitynorfixedor

determinable payments.

Theyaresubsequentlymeasuredatfairvaluewithchangesinsuchfairvalue(i.e.gainsorlosses)recognised

intheStatementofProfitorLossandOtherComprehensiveIncome.Available-for-salefinancialassetsare

includedinnon-currentassetsexceptwheretheyareexpectedtobesoldwithin12monthsaftertheendof

thereportingperiod.Allotherfinancialassetsareclassifiedascurrentassets.

(iv)Financialliabilities

Non-derivativefinancialliabilities(excludingfinancialguarantees)aresubsequentlymeasuredatamortisedcost

using the effective interest rate method.




k) Financial instruments (continued)

Impairment

Ateachreportingdate,theentityassesseswhetherthereisobjectiveevidencethatafinancialinstrumenthas

beenimpaired.ImpairmentlossesarerecognisedintheStatementofProfitorLossandOtherComprehensive

Income.

l) Leases

Leasesoffixedassetswheresubstantiallyalltherisksandbenefitsincidentaltotheownershipoftheasset,

butnotthelegalownershiparetransferredtothecompanyareclassifiedasfinanceleases.Financeleasesare

capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased

propertyorthepresentvalueoftheminimumleasepayments,includinganyguaranteedresidualvalues.Lease

payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leasedassetsaredepreciatedonastraight-linebasisovertheshorteroftheirestimatedusefullivesorthelease

term.Leasepaymentsforoperatingleases,wheresubstantiallyalltherisksandbenefitsremainwiththelessor,

arechargedasexpensesintheperiodsinwhichtheyareincurred.Leaseincentivesunderoperatingleasesare

recognisedasaliabilityandamortisedonastraight-linebasisoverthelifeoftheleaseterm.

m) Provisions

Provisionsarerecognisedwhentheeconomicentityhasalegal,equitableorconstructiveobligationtomakea

futuresacrificeofeconomicbenefitstootherentitiesasaresultofpasttransactionsofotherpastevents,itis

probablethatafuturesacrificeofeconomicbenefitswillberequiredandareliableestimatecanbemadeofthe

amount of the obligation.

A provision for dividends is not recognised as a liability unless the dividends are declared, determined or publicly

recommended on or before the reporting date.

n) Contributed equity

Ordinarysharesarerecognisedatthefairvalueoftheconsiderationreceivedbythecompany.Anytransaction

costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds

received.

o) Earnings per share

Basicearningspershareiscalculatedbydividingtheprofitattributabletoequityholdersofthecompany,excluding

any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares

outstandingduringthefinancialyear,adjustedforbonuselementsinordinarysharesissuedduringtheyear.

p) Goods and Services Tax

Revenues,expensesandassetsarerecognisednetoftheamountofGoodsandServicesTax(GST),exceptwhere

the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is

recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or

payable to, the taxation authority is included as part of receivables or payables in the Balance Sheet. Cash flows

are included in the Statement of Cash Flows on a gross basis.

TheGSTcomponentsofcashflowsarisingfrominvestingandfinancingactivitieswhicharerecoverablefrom,or

payableto,thetaxationauthorityareclassifiedasoperatingcashflows.



Note2.FinancialriskmanagementThecompany’sactivitiesexposeittoalimitedvarietyoffinancialrisks:marketrisk(includingcurrencyrisk,fair

valueinterestriskandpricerisk),creditrisk,liquidityriskandcashflowinterestraterisk.Thecompany’soverall

riskmanagementprogramfocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotential

adverseeffectsonthefinancialperformanceoftheentity.Theentitydoesnotusederivativeinstruments.

Risk management is carried out directly by the board of directors.

(i)Marketrisk

The company has no exposure to any transactions denominated in a currency other than Australian dollars.

(ii)Pricerisk

The company is not exposed to equity securities price risk as it does not hold investments for sale or at fair value.

The company is not exposed to commodity price risk.

(iii)Creditrisk

Thecompanyhasnosignificantconcentrationsofcreditrisk.Ithaspoliciesinplacetoensurethatcustomers

have an appropriate credit history. The company’s franchise agreement limits the company’s credit exposure to one

financialinstitution,beingBendigoandAdelaideBankLimited.

(iv)Liquidityrisk

Prudentliquiditymanagementimpliesmaintainingsufficientcashandmarketablesecuritiesandtheavailability

of funding from credit facilities. The company believes that its sound relationship with Bendigo and Adelaide Bank

Limitedmitigatesthisrisksignificantly.

(v)Cashflowandfairvalueinterestraterisk

Interest-bearingassetsareheldwithBendigoandAdelaideBankLimitedandsubjecttomovementsinmarket

interest.Interest-rateriskcouldalsoarisefromlong-termborrowings.Borrowingsissuedatvariableratesexpose

thecompanytocashflowinterest-raterisk.ThecompanybelievesthatitssoundrelationshipwithBendigoand

AdelaideBankLimitedmitigatesthisrisksignificantly.

(vi)Capitalmanagement

The board’s policy is to maintain a strong capital base so as to sustain future development of the company. The

board of directors monitor the return on capital and the level of dividends to shareholders. Capital is represented

by total equity as recorded in the Balance Sheet.

In accordance with the franchise agreement, in any 12 month period, the funds distributed to shareholders shall

not exceed the distribution limit:

The distribution limit is the greater of:

(a)20%oftheprofitorfundsofthefranchiseeotherwiseavailablefordistributiontoshareholdersinthat12

month period; and

(b) subjecttotheavailabilityofdistributableprofits,therelevantrateofreturnmultipliedbytheaveragelevelof

share capital of the franchisee over that 12 month period where the relevant rate of return is equal to the

weightedaverageinterestrateon90daybankbillsoverthat12monthperiodplus5%.



Note2.Financialriskmanagement(continued)

The board is managing the growth of the business in line with this requirement. There are no other externally

imposed capital requirements, although the nature of the company is such that amounts will be paid in the form

of charitable donations and sponsorship. Charitable donations and sponsorship paid for the year ended 30 June

2015canbeseenintheStatementofProfitorLossandOtherComprehensiveIncome.

There were no changes in the company’s approach to capital management during the year.

Note3.CriticalaccountingestimatesandjudgementsEstimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,

includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheentityandthatarebelievedtobe

reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by

definition,seldomequaltherelatedactualresults.

Managementhasidentifiedthefollowingcriticalaccountingpoliciesforwhichsignificantjudgements,estimates

and assumptions are made. Actual results may differ from these estimates under different assumptions and

conditionsandmaymateriallyaffectfinancialresultsorthefinancialpositionreportedinfutureperiods.

Further details of the nature of these assumptions and conditions may be found in the relevant notes to the

financialstatements.

Taxation

Judgement is required in assessing whether deferred tax assets and certain tax liabilities are recognised on

thebalancesheet.Deferredtaxassets,includingthosearisingfromun-recoupedtaxlosses,capitallossesand

temporary differences, are recognised only where it is considered more likely than not that they will be recovered,

whichisdependentonthegenerationofsufficientfuturetaxableprofits.

Assumptionsaboutthegenerationoffuturetaxableprofitsdependonmanagement’sestimatesoffuturecash

flows. These depend on estimates of future sales volumes, operating costs, capital expenditure, dividends and

other capital management transactions. Judgements are also required about the application of income tax

legislation.

Thesejudgementsandassumptionsaresubjecttoriskanduncertainty.Thereisthereforeapossibilitythat

changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and

deferred tax liabilities recognised on the balance sheet and the amount of other tax losses and temporary

differences not yet recognised. In such circumstances, some or all of the carrying amount of recognised deferred

taxassetsandliabilitiesmayrequireadjustment,resultingincorrespondingcreditorchargetotheStatementof

ProfitorLossandOtherComprehensiveIncome.

Estimation of useful lives of assets

The estimation of the useful lives of assets has been based on historical experience and the condition of the

assetisassessedatleastonceperyearandconsideredagainsttheremainingusefullife.Adjustmentstouseful

lives are made when considered necessary.



Note3.Criticalaccountingestimatesandjudgements(continued)

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the company’s share of the net

identifiableassetsoftheacquiredbranch/agencyatthedateofacquisition.Goodwillonacquisitionisincludedin

intangible assets. Goodwill is not amortised. Instead, goodwill is tested for impairment annually, or more frequently

if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated

impairment losses.

The calculations require the use of assumptions.

Impairment of assets

At each reporting date, the company reviews the carrying amounts of its tangible and intangible assets that have

anindefiniteusefullifetodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairment

loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the

extentoftheimpairmentloss(ifany).Wheretheassetdoesnotgeneratecashflowsthatareindependentfrom

otherassets,theconsolidatedentityestimatestherecoverableamountofthecash-generatingunittowhichthe

asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the

estimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrent

marketassessmentsofthetimevalueofmoneyandtherisksspecifictotheassetforwhichtheestimatesof

futurecashflowshavenotbeenadjusted.

Iftherecoverableamountofanasset(orcash-generatingunit)isestimatedtobelessthanitscarryingamount,

thecarryingamountoftheasset(cash-generatingunit)isreducedtoitsrecoverableamount.Animpairmentloss

isrecognisedinprofitorlossimmediately,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethe

impairment loss is treated as a revaluation decrease.

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(cash-generatingunit)is

increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying

amount does not exceed the carrying amount that would have been determined had no impairment loss been

recognisedfortheasset(cash-generatingunit)inprioryears.Areversalofanimpairmentlossisrecognised

inprofitorlossimmediately,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethereversalofthe

impairment loss is treated as a revaluation increase.

2015 2014 $ $

Note4.RevenuefromordinaryactivitiesOperatingactivities:

-servicescommissions 827,849 810,420

-otherrevenue 517 719

Total revenue from operating activities 828,366 811,139

Non-operatingactivities:

-interestreceived 7,112 8,090

Total revenue from non-operating activities 7,112 8,090

Total revenues from ordinary activities 835,478 819,229



Note5.Expenses Depreciationofnon-currentassets:

-plantandequipment 4,457 3,006

-leaseholdimprovements 4,598 7,043

Amortisationofnon-currentassets:

-franchiseagreement 2,311 2,311

-franchiserenewalfee 11,553 11,554

22,919 23,914

Bad debts 154 1,841

Loss on disposal of asset 1,295 -

Note6.IncometaxexpenseThe components of tax expense comprise:

-Currenttax 19,004 5,583

-Movementindeferredtax (2,606) 80

-Adjustmenttodeferredtaxtoreflectchangetotaxrateinfutureperiods 52 -

-Under/(Over)provisionoftaxinthepriorperiod - (61)

16,450 5,602

Theprimafacietaxonprofitfromordinaryactivitiesbeforeincometaxis

reconciled to the income tax expense as follows

Operatingprofit 54,663 18,876

Primafacietaxonprofitfromordinaryactivitiesat30% 16,398 5,663

Add tax effect of:

-timingdifferenceexpenses 2,606 (80)

19,004 5,583

Movementindeferredtax (2,606) 80

Adjustmenttodeferredtaxtoreflectchangeoftaxrateinfutureperiods 52 -

Under/(Over)provisionofincometaxintheprioryear - (61)

16,450 5,602

2015 2014 $ $



Note7.CashandcashequivalentsCashatbankandonhand 12,772 11,571

Term deposits 200,000 200,000

212,772 211,571

Note 7.(a) Reconciliation to cash flow statement

TheabovefiguresreconciletotheamountofcashshownintheStatement

ofCashFlowsattheendofthefinancialyearasfollows:

Cashatbankandonhand 12,772 11,571

Term deposits 200,000 200,000

212,772 211,571

Note8.Tradeandotherreceivables Tradereceivables 27,418 34,301

Prepayments 5,262 5,171

Otherreceivablesandaccruals 7,194 827

39,874 40,299

Note9.Property,plantandequipmentLeaseholdimprovements

Atcost 147,109 134,129

Lessaccumulateddepreciation (61,236) (56,638)

85,873 77,491

Plantandequipment

Atcost 31,054 29,487


6,145 5,470

Motorvehicles

Atcost 36,224 11,364


34,301 8,710

Total written down amount 126,319 91,671

2015 2014 $ $



Note9.Property,plantandequipment(continued)

Movements in carrying amounts:

Leaseholdimprovements

Carryingamountatbeginning 77,491 83,208

Additions 12,980 -

Disposals - -

Less:depreciationexpense (4,598) (5,717)

Carrying amount at end 85,873 77,491

Plantandequipment

Carryingamountatbeginning 5,470 5,448

Additions 1,567 1,700

Disposals - -

Less:depreciationexpense (892) (1,678)


Motorvehicles

Carryingamountatbeginning 8,710 -

Additions 36,224 11,364

Disposals (11,364) -

Less:depreciationexpense 731 (2,654)



Note10.IntangibleassetsFranchise fee

Atcost 21,554 21,554

Less:accumulatedamortisation (17,125) (14,814)

4,429 6,740

Renewal processing fee

Atcost 57,768 57,768

Less:accumulatedamortisation (35,624) (24,070)

22,144 33,698

2015 2014 $ $



Note10.Intangibleassets(continued)

Goodwill on purchase of agency

At cost 112,000 112,000

Less:accumulatedimpairmentlosses - -

112,000 112,000


Note11.TaxCurrent:

Income tax payable/(refundable) 6,113 (7,184)

Non-Current:

Deferredtaxassets

-accruals 1,012 -

1,012 -

Deferredtaxliability

-accruals 38 29

-deductibleprepayments - 1,551

38 1,580

Net deferred tax asset/(liability) 974 (1,580)

Movement in deferred tax charged to Statement of Profit or Loss

and Other Comprehensive Income (2,554) (80)

Note12.TradeandotherpayablesCurrent:

Tradecreditors 6,566 3,638

Othercreditorsandaccruals 3,550 3,550

10,116 7,188

Note13.Contributedequity505,412ordinarysharesfullypaid(2014:505,412) 505,412 505,412

Less:equityraisingexpenses (16,896) (16,896)

488,516 488,516

2015 2014 $ $



Note13.Contributedequity(continued)

Rights attached to shares

(a)Votingrights

Subjecttosomelimitedexceptions,eachmemberhastherighttovoteatageneralmeeting.

Onashowofhandsorapoll,eachmemberattendingthemeeting(whethertheyareattendingthemeeting

inpersonorbyattorney,corporaterepresentativeorproxy)hasonevote,regardlessofthenumberofshares

held.However,whereapersonattendsameetinginpersonandisentitledtovoteinmorethanonecapacity

(forexample,thepersonisamemberandhasalsobeenappointedasproxyforanothermember)thatperson

mayonlyexerciseonevoteonashowofhands.Onapoll,thatpersonmayexerciseonevoteasamemberand

one vote for each other member that person represents as duly appointed attorney, corporate representative or

proxy.

The purpose of giving each member only one vote, regardless of the number of shares held, is to reflect the

nature of the company as a community based company, by providing that all members of the community who

have contributed to the establishment and ongoing operation of the Community Bank® branch have the same

ability to influence the operation of the company.

(b)Dividends

Generally, dividends are payable to members in proportion to the amount of the share capital paid up on the

sharesheldbythem,subjecttoanyspecialrightsandrestrictionsforthetimebeingattachingtoshares.The

franchiseagreementwithBendigoandAdelaideBankLimitedcontainsalimitonthelevelofprofitsorfunds

that may be distributed to shareholders. There is also a restriction on the payment of dividends to certain

shareholdersiftheyhaveaprohibitedshareholdinginterest(seebelow).

(c)Transfer

Generally,ordinarysharesarefreelytransferable.However,thedirectorshaveadiscretiontorefusetoregister

a transfer of shares.

Subjecttotheforegoing,shareholdersmaytransfersharesbyapropertransfereffectedinaccordancewiththe

company’s constitution and the Corporations Act 2001.

Prohibitedshareholdinginterest

A person must not have a prohibited shareholding interest in the company.

In summary, a person has a prohibited shareholding interest if any of the following applies:

• Theycontrolorown10%ormoreofthesharesinthecompany(the“10%limit”).

• Intheopinionoftheboardtheydonothaveacloseconnectiontothecommunityorcommunitiesinwhichthe

companypredominantlycarriesonbusiness(the“closeconnectiontest”).

• Wherethepersonisashareholder,afterthetransferofsharesinthecompanytothatpersonthenumberof

shareholdersinthecompanyis(orwouldbe)lowerthanthebasenumber(the“basenumbertest”).Thebase

numberis298.Asatthedateofthisreport,thecompanyhad324shareholders.

Aswithvotingrights,thepurposeofthisprohibitedshareholdingprovisionistoreflectthecommunity-basednature

of the company.

Whereapersonhasaprohibitedshareholdinginterest,thevotinganddividendrightsattachingtothesharesin

whichtheperson(andhisorherassociates)haveaprohibitedshareholdinginterest,aresuspended.



Note13.Contributedequity(continued)

Prohibitedshareholdinginterest(continued)

Theboardhasthepowertorequestinformationfromapersonwhohas(orissuspectedbytheboardofhaving)

alegalorbeneficialinterestinanysharesinthecompanyoranyvotingpowerinthecompany,forthepurposeof

determining whether a person has a prohibited shareholding interest. If the board becomes aware that a member

hasaprohibitedshareholdinginterest,itmustserveanoticerequiringthemember(orthemember’sassociate)to

dispose of the number of shares the board considers necessary to remedy the breach. If a person fails to comply

withsuchanoticewithinaspecifiedperiod(thatmustbebetweenthreeandsixmonths),theboardisauthorised

tosellthespecifiedsharesonbehalfofthatperson.Theholderwillbeentitledtotheconsiderationfromthesale

of the shares, less any expenses incurred by the board in selling or otherwise dealing with those shares.

In the constitution, members acknowledge and recognise that the exercise of the powers given to the board may

cause considerable disadvantage to individual members, but that such a result may be necessary to enforce the

prohibition.

2015 2014 $ $

Note14.RetainedearningsBalanceatthebeginningofthefinancialyear 5,879 22,930

Netprofitfromordinaryactivitiesafterincometax 38,213 13,274

Dividendspaidorprovidedfor (30,325) (30,325)

Balance at the end of the financial year 13,767 5,879

Note15.StatementofcashflowsReconciliationofprofitfromordinaryactivitiesaftertaxtonetcashprovided

by operating activities

Profitfromordinaryactivitiesafterincometax 38,213 13,274

Noncashitems:

-depreciation 9,055 10,049

-amortisation 13,864 13,865

-lossondisposalofasset 1,295 -

Changes in assets and liabilities:

-(increase)/decreaseinreceivables 425 3,710

-(increase)/decreaseinotherassets 6,210 80

-increase/(decrease)inpayables 2,928 2,052

-increase/(decrease)incurrenttaxliabilities 4,533 (8,324)

Net cash flows provided by operating activities 76,523 34,706



Note16.LeasesOperatingleasecommitments

Non-cancellableoperatingleasescontractedforbutnotcapitalisedin

thefinancialstatements

Payable-minimumleasepayments:

-notlaterthan12months 12,000 12,000

-between12monthsand5years 23,000 35,000

-greaterthan5years - -

35,000 47,000

The property lease is linked to the company’s Franchise Agreement with Bendigo

andAdelaideBankLimited,theFranchiserenewalwason1June2012withtwo,

5 year extension options available. As at reporting date the new lease agreement

hadnotbeenfinalisedandisinthehandsoflegalrepresentatives.Thereisno

indication to suggest it will not be renewed.

Note17.Auditor’sremuneration Amounts received or due and receivable by the auditor of the company for:

-auditandreviewservices 5,050 4,950

-shareregistryservices 3,517 2,719

-nonauditservices 2,615 2,447

11,182 10,116

Note18.Directorandrelatedpartydisclosures

KeyManagementPersonnelRemuneration

Short-term employee benefits 5,606 -

Note19.Dividendspaidorprovideda. Dividends paid during the year

Current year dividend

100% (2014: 100%) franked dividend - 6 cents (2014: 6 cents) per share 30,325 30,325

Thetaxrateatwhichdividendshavebeenfrankedis30%(2014:30%).

2015 2014 $ $



Note19.Dividendspaidorprovided(continued)

b. Franking account balance

Franking credits available for subsequent reporting periods are:

- frankingaccountbalanceasattheendofthefinancialyear 24,425 31,714

- frankingcredits/(debits)thatwillarisefrompayment/(refund)of

incometaxasattheendofthefinancialyear 6,113 (7,184)

- frankingdebitsthatwillarisefromthepaymentofdividendsrecognised

asaliabilityattheendofthefinancialyear - -

Franking credits available for future financial reporting periods: 30,538 24,530

- frankingdebitsthatwillarisefrompaymentofdividendsproposedor

declaredbeforethefinancialreportwasauthorisedforusebutnot

recognisedasadistributiontoequityholdersduringtheperiod - -

Net franking credits available 30,538 24,530

Note20.Earningspershare

2015 $

2014 $

(a) Profitattributabletotheordinaryequityholdersofthecompanyused

in calculating earnings per share38,213 13,274

Number Number

(b) Weightedaveragenumberofordinarysharesusedasthe

denominator in calculating basic earnings per share505,412 505,412

Note21.EventsoccurringafterthereportingdateTherehavebeennoeventsaftertheendofthefinancialyearthatwouldmateriallyaffectthefinancialstatements.

Note22.ContingentliabilitiesandcontingentassetsTherewerenocontingentliabilitiesorcontingentassetsatthedateofthisreporttoaffectthefinancial

statements.

Note23.SegmentreportingThe economic entity operates in the service sector where it facilitates Community Bank® services in Inglewood

andsurroundingdistricts,VictoriapursuanttoafranchiseagreementwithBendigoandAdelaideBankLimited.

2015 2014 $ $



Note24.Registeredoffice/PrincipalplaceofbusinessTheentityisacompanylimitedbyshares,incorporatedanddomiciledinAustralia.Theregisteredofficeand

principal place of business is:

Registered Office Principal Place of Business

64BrookeStreet

InglewoodVIC3517

64BrookeStreet

InglewoodVIC3517

Note25.Financialinstruments

FinancialInstrumentCompositionandMaturityAnalysis

Thetablebelowreflectstheundiscountedcontractualsettlementtermsforallfinancialinstruments,aswellasthe

settlementperiodforinstrumentswithafixedperiodofmaturityandinterestrate.

Financial instrument

Floating interestFixed interest rate maturing in Non interest

bearingWeighted average1 year or less Over 1 to 5 years Over 5 years

2015$

2014$

2015$

2014$

2015$

2014$

2015$

2014$

2015$

2014$

2015%

2014%

Financial assets

Cash and cash equivalents

12,672 11,471 200,000 200,000 - - - - 100 100 2.75 3.1

Receivables - - - - - - - - 27,418 34,301 N/A N/A

Financial liabilities

Payables - - - - - - - - 6,566 3,638 N/A N/A

NetFairValues

Thenetfairvaluesoffinancialassetsandliabilitiesapproximatethecarryingvaluesasdisclosedinthebalance

sheet.Thecompanydoesnothaveanyunrecognisedfinancialinstrumentsattheyearend.

Credit Risk

Themaximumexposuretocreditriskatbalancedatetorecognisedfinancialassetsisthecarryingamountof

thoseassetsasdisclosedinthebalancesheetandnotestothefinancialstatements.

Therearenomaterialcreditriskexposurestoanysingledebtororgroupofdebtorsunderfinancialinstruments

entered into by the economic entity.

Interest Rate Risk

Interestrateriskreferstotheriskthatthevalueofafinancialinstrumentorcashflowsassociatedwiththe

instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from the interest bearing

financialassetsandliabilitiesinplacesubjecttovariableinterestrates,asoutlinedabove.



Note25.Financialinstruments(continued)

Sensitivity Analysis

The company has performed sensitivity analysis relating to its exposure to interest rate risk at balance date.

This sensitivity analysis demonstrates the effect on the current year results and equity which could result from a

change in interest rates.

Asat30June2015,theeffectonprofitandequityasaresultofchangesininterestrate,withallothervariables

remaining constant would be as follows:

2015 $

2014 $

Changeinprofit/(loss)

Increaseininterestrateby1% 2,127 2,115

Decreaseininterestrateby1% 2,127 2,115

Change in equity

Increaseininterestrateby1% 2,127 2,115

Decreaseininterestrateby1% 2,127 2,115


Directors’declarationInaccordancewitharesolutionofthedirectorsofInglewood&DistrictsCommunityEnterprisesLimited,westate

that:

In the opinion of the directors:

(a) thefinancialstatementsandnotesofthecompanyareinaccordancewiththeCorporationsAct2001,

including:

(i) givingatrueandfairviewofthecompany’sfinancialpositionasat30June2015andofitsperformance

forthefinancialyearendedonthatdate;and

(ii) complyingwithAccountingStandards,theCorporationsRegulations2001andothermandatoryprofessional

reporting requirements; and

(b) therearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebtsasandwhenthey

become due and payable.

(c) theauditedremunerationdisclosuressetoutintheremunerationreportsectionofthedirectors’reportcomply

withAccountingStandardAASB124RelatedPartyDisclosuresandtheCorporationsRegulations2001.

This declaration is made in accordance with a resolution of the board of directors.

Maxwell Charles Higgs,

Chairman

Signedonthe27thofAugust2015.


Independent audit report


Independent audit report (continued)

bendigobank.com.au

Inglewood & Districts Community Bank® Branch 64 Brooke Street, Inglewood VIC 3517Phone: (03) 5438 3500 Fax: (03) 5438 3502

Franchisee: Inglewood & Districts Community Enterprises Limited64 Brooke Street, Inglewood VIC 3517ABN: 87 123 959 375www.bendigobank.com.au/inglewood

Share Registry:AFS & Associates Pty Ltd61-65 Bull Street, Bendigo VIC 3550PO Box 454, Bendigo VIC 3552Phone: (03) 5443 0344 Fax: (03) 5443 5304Email: [email protected]

(BMPAR15103) (09/15)

Documents

Annual Report 2015 · Financial statements 11 Notes to the financial statements 15 Directors’ declaration 37 Independent audit report 38 . 2 Annual report Inglewood & Districts