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Notes to the

financial statements

for the year ended 30 September 2015


22. Related parties

In addition to the transactions disclosed elsewhere in

these financial statements, the Company had the following

material transactions with related parties during the year:

a. Balances with related parties

For the year ended 30 September 2014, an advance

of AU$28,000 to a director, Ryan Richard Mount was

interest-bearing at market rate. This advance was

fully paid as at 30 September 2015 including interest

at market rates.

b. Transactions with related parties

Stephen Ray Williams, a director of the Company is a

consultant of Kemp Strang Lawyers. For the year ended

30 September 2015, AU$133,000 (2014 AU$98,000) was

paid to Kemp Strang Lawyers for legal services to the

Company on normal commercial terms.

During the year, fund raising and advisory services

were provided by JRG Consulting Pty Limited (‘JRG’).

Mr Jeremy Gray, a director of the Company, is a non-

executive director and controlling shareholder of JRG. The

Board considers that the JRG agreement is a commercial

arrangement entered into on reasonable arm’s length

terms. There is no obligation for the Company to acquire

services exclusively from JRG or for JRG to exclusively

provide services to the Company. Total amount paid to

JRG during the year including the provision of services

provided by Mr Jeremy Gray was AU$29,000 (2014: Nil).

For the year ended 30 September 2015 (exclusive of

GST), consultancy fees of AU$8,000 were charged by

Burrawong Holdings Pty Limited to the Company on

behalf of Stephen Ray Williams.

c. Key management personnel of the Company

In the opinion of the directors, the directors of the

Company represented the key management personnel of

the Company. Further details of directors’ emoluments are

included In Note 26 to the financial statements.

23. Financial risk management


Exposure to credit, liquidity, interest rates and currency

risks arises in the normal course of the Company’s


The Company’s exposure to these risks and the financial

risk management policies and practices used by the

Company are described below and are limited by the

Company’s financial management policies and practices

described below.

a. Credit risk

Exposure to credit risk relating to financial assets arises

from the potential non-performance by counterparties of

contract obligations that could lead to a financial loss to

the Company.

Credit risk is managed through the maintenance of

procedures (such procedures include the utilisation

of systems for the approval, granting and renewal of

credit limits, regular monitoring of exposures against

such limits and monitoring of the financial stability of

significant customers and counterparties), ensuring to

the extent possible, that customers and counterparties

to transactions are of sound credit worthiness. Such

monitoring is used in assessing receivables for

impairment. Credit terms are generally 14 to 30 days from

the invoice date.

Risk is also minimised through investing surplus funds

in financial institutions that maintain a high credit rating,

or in entities that the Board has otherwise cleared as

being financially sound. Where the Company is unable

to ascertain a satisfactory credit risk profile in relation

to a customer or counterparty, the risk may be further

managed through title retention clauses over goods or

obtaining security by way of personal or commercial

guarantees over assets of sufficient value which can be

claimed against in the event of any default.

Credit risk exposures

The maximum exposure to credit risk by class of

recognised financial assets at the end of the reporting

period, excluding the value of any collateral or other

security held, is equivalent to the carrying value and

classification of those financial assets (net of any

provisions) as presented in the statement of financial

position. Credit risk also arises through the provision of

financial guarantees, as approved at board level.

Trade and other receivables that are neither past due nor

impaired are considered to be of high credit quality.

The Company manages its credit risk associated with

funds on deposit and cash at bank by only dealing

with reputable financial institutions. At year end the

Company has one material exposure of AU$1,094,000

(2014: AU$2,084,000) to the Australia and New Zealand

Banking Group Limited relating to funds on deposit and

cash at bank.