2018 annual report - western murray irrigation...2019/01/01 · 2018 annual report | 3 dear wmi...

2018 ANNUAL REPORTW e s t e r n M u r r a y I r r i g a t i o n L t d

Directors: Kevin Watson (Chair)Justin Kassulke (Deputy Chair)Matthew CottrellAllison McTaggartMichael MobilioTim VinesBrett Pekin (to 6 April 2018)David Walker (from 1 August 2018)

General Manager: Anthony Couroupis (to 8 January 2018)

CEO: Judith Damiani (from 8 January 2018)

Company Secretaries: Narelle HeardAnthony Couroupis (to 9 February 2018)Judith Damiani (from 9 February 2018)

Auditor: William Buck ADELAIDE SA 5000

Banker: National Australia Bank MILDURA VIC 3500

Solicitor: Addisons SYDNEY NSW 2000

2018 AGM: WMI 24th Annual General MeetingTuesday 27 November 2018 at 8.00pmCoomealla Memorial Sporting ClubSilver City Highway, Dareton NSW 2717

WESTERN MURRAY IRRIGATION LTD (WMI) A company limited by shares, proudly grower owned.

Registered office: 5 Tapio Street, DARETON NSW 2717 Telephone: 03 5027 4953Postal: PO Box 346, DARETON NSW 2717Website: www.westernmurray.com.auEmail: [email protected] ABN: 93 067 197 853

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CONTENTS

CHAIR’S REPORT 3

CEO’S REPORT 5

STRATEGIC OBJECTIVES AND ACHIEVEMENTS 7

DIRECTORS’ REPORT 14

FINANCIAL STATEMENTS 18

AUDITOR’S INDEPENDENCE DECLARATION 35

INDEPENDENT AUDITOR’S REPORT 36

UNAUDITED FINANCIAL STATEMENTS 39

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Dear WMI Shareholders

I am delighted to present you with the 24th Annual Report for Western Murray Irrigation (WMI) for the year ended 30 June 2018.

WMI continues its mandate to change, underpinned by solid financial performance.

The new Constitution, adopted by shareholders at the 2017 AGM, has directed the changes to Board composition – transitioning to a maximum of four member Directors and three non-member (independent) Directors.

I would like to sincerely thank outgoing directors Brett Pekin, Tim Vines and Michael Mobilio for their valuable contribution to the company and welcome returning director Matthew Cottrell; new independent director David Walker and incoming member director Michael Goodrem.

The WMI Board also welcomed a new CEO, Judith Damiani, in January 2018 replacing outgoing General Manager Anthony Couroupis. The Board thanks Anthony for his valuable contributions to the company’s progress over the last few years. The Board looks forward to working with Judith in supporting our customers to meet rising global demand for premium produce.

Operational Result Not surprisingly, given the very warm and dry start to 2018, water diversions were up to the end of June, 9% above the previous season and nearly 3% above the 5 year average.

Irrigation service delivery for the year was generally pleasing considering the extent of damage caused by the November 2017 storms; the commissioning of a new generator in Curlwaa and high irrigation demand, particularly in Coomealla, in 2018. We would also like to thank our Buronga customers for their cooperation in improving service delivery levels in that area.

Financial Result WMI’s surplus for the year ended 30 June 2018 was $1,677,088. This result is substantially lower than 2017 mainly due to reduced termination fees (approx. $1.5M less than 2017). Total equity for the company has increased by 3% to $58,661,069.

Charges ReviewThe Board’s review of WMI charges as well as the Asset Replacement Fund are significant projects for the company and are being prudently assisted by a special purpose committee comprising WMI’s two independent directors and two external experts. These projects are expected to conclude late in 2018/19.

Finally I would like to thank all Directors and staff for their dedication and contribution to the positive results for the company and wish all of our customers a profitable year ahead.

Dated: 11 October 2018

Kevin WatsonChair

CHAIR’S REPORT


WMI CEO Judith Damiani meets Federal Agriculture and Water Minister David Littleproud. Minister Littleproud is recognised for brokering the bipartisan deal to secure the progress of the Murray Darling Basin Plan in 2018.

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I am pleased to present my first report to shareholders since commencing as CEO in January 2018.

I was able to hit the ground running during the period for peak summer irrigation; tumultuous politics around the Murray Darling Basin Plan and significant water reform activity in NSW.

Representations were quickly made with the NSW Irrigator’s Council, National Irrigator’s Council, NSW Water Minister’s office, WaterNSW, NSW Department of Industry – Water, The Hon. Sussan Ley, Member for Farrer, Federal Agriculture and Water Resources Minister David Littleproud and the Productivity Commission conducting the first five year review of the Murray Darling Basin Plan. It was good to see common sense prevail and the Basin Plan back on track.

WMI will continue to advocate on issues affecting NSW Murray high security irrigators. As we move into warmer and drier weather the focus will be on water security and deliverability particularly during summer when increasing horticultural developments and the southern cotton crop demand is high.

WMI Achievements in 2017/18 Some of our achievements include:

• Adoption and implementation of the new Constitution

• Rapid response and recovery from damage caused by November 2017 storms

• Cyber risk expert assessment and implementation of recommendations

• Increased temporary delivery entitlements trade

• Commissioning of the Curlwaa stand-by generator

• Curlwaa by-pass and balance tower overhaul

• Curlwaa levee expert inspection report and implementation of recommendations

• Tendered for the Curlwaa, Coomealla and (remaining) Buronga meter upgrade and telemetry system

• Successful testing of the new (more efficient) KSB pump at the Coomealla pump station resulting in the pump replacement plan being bought forward to 2019.

• Two new check valves installed at the Coomealla pump station

• New vacuum pump system installed at Buronga pump station

• New switchboards for the Coomealla and Curlwaa pump stations

• Successful review by the NSW Environment Protection Agency (resulting in the reduction of drainage monitoring sites)

• Review of communications including customer database and website

Crop report 2018 – have we turned the corner?The 2018 WMI crop report shows an increase in hectares planted (and a decrease in vacant land) for the first time in fifteen years. The increase is attributable to seasonal crops such as melons and vegetables, and other fruit and nut trees.

Whilst grapevine and citrus plantings have continued to decline since 2003 there are more recent signs of new grapevine and citrus plantings currently underway which is really no surprise considering the positive state of play for many of our export-focussed horticultural industries.

I would encourage existing and new customers to work closely with us to ensure the best possible service levels are achieved at all times. At the same time WMI has committed to improving our communications and customer service. Our friendly staff at the office and depot are only too happy to assist.

This is an exciting time for our region and we need to all work together to maximise these opportunities.

AppreciationI would like to thank the Directors, staff and a number of shareholders for welcoming me to WMI, and I look forward to contributing to sustainable growth in the Curlwaa, Coomealla and Buronga irrigation areas.

Judith DamianiCEO

1) CUSTOMERS

CEO’S REPORT

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STRATEGIC OBJECTIVES AND ACHIEVEMENTS VISION To be the region’s premier irrigation service provider.

MISSIONTo deliver cost effective services that meet our irrigation customers’ needs.

VALUESPerformance • Integrity • Accountability


1) CUSTOMERSWe will minimise our cost of doing business

Pictured above: Drainage Officer Garry Matulick and a NSW EPA officer during the EPA review. The EPA were satisfied WMI were undertaking best practice environmental monitoring and compliance and varied the EPA licence by reducing the number of monitoring sites.

Pictured below left: Jim Watson (WMI) and Craig Heaysman inspecting his outlet in Coomealla.

Pictured below right: Major overhaul on overhead cranes at all sites, now all fitted with data loggers to record our very low usage to save on major servicing.

STRATEGIC PRIORITIES: 2017/18 ACHIEVEMENTS

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STRATEGIC OBJECTIVES AND ACHIEVEMENTS

p Two check valves were replaced at Coomealla pump station p New vacuum pump system installed at Buronga pump station

2) INFRASTRUCTUREWe will provide infrastructure that meets the needs of our irrigation customers.

Pictured: The WMI Board and staff, as well as invited guest Wentworth Shire Council Mayor Melisa Hederics, enjoyed a tour of operations in April – seen here inspecting the new generator at the Curlwaa Pump Station.

p Comebunyee Rd – asbestos pipe removal and returning surface drain to normal profile

p Surface drains reworked in many areas

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NOVEMBER 2017 STORMS Pictured above: A blocked deep drain being pumped out.

Pictured bottom left: Collapsed surface drain bank.

Pictured bottom middle/right: Curlwaa’s James Highway at Delta Road before, and after the storm.

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BEFORE AFTER


3) LEADERSHIPWe will provide high quality leadership to our shareholders, customers and staff.

Pictured: WMI Chair Kevin Watson; Federal Member for Farrer Sussan Ley MP; WMI CEO Judith Damiani

p ‘Spin Doctor’ – valve turner purchased for exercising valves at all sites, more efficiently and safely.

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WMI visited Central Irrigation Trust and Renmark Irrigation Trust to discuss common issues and share knowledge. WMI would like to thank both SA irrigation infrastructure operators for their friendly welcome.


Your Directors present their report together with the financial statements of Western Murray Irrigation Limited (the company) for the financial year ended 30 June 2018 and auditor’s report thereon. This financial statement has been prepared in accordance with Australian Equivalents of International Financial Reporting Standards.

PRINCIPAL ACTIVITIES The principal activities of Western Murray Irrigation during the financial year were:-• delivering water to irrigators within the Buronga,

Coomealla and Curlwaa irrigation areas; and

• disposing of drainage water generated by irrigation activities undertaken by irrigators within the Buronga, Coomealla and Curlwaa irrigation areas.

No significant change in the nature of these activities occurred during the year ended 30 June 2018.

REVIEW OF OPERATIONS AND RESULTS FROM THOSE OPERATIONS A total of 26,541ML was diverted for the year 1 July 2017 to 30 June 2018, compared to 24,303ML in the prior financial year, and compared to 25,877ML on average over the past five years. A summary of the company’s financial performance, by irrigation area, is provided in the Unaudited Financial Statements section, adjusted for the Financial Instrument reclassification (for comparative purposes).

DIRECTORSThe names of the persons who have been Directors, or appointed as Directors, during the period since 1 July 2017 and up to the date of this report are: Kevin Watson, Justin Kassulke, Brett Pekin (concluded 06 April 2018), Matthew Cottrell, Allison McTaggart, Michael Mobilio, Tim Vines and David Walker (appointed 01 August 2018).

Particulars of the skills, experience, expertise and responsibilities of the Directors at the date of this report follows.

DIRECTORS’ REPORT

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KEVIN WATSON Coomealla Representative Director Director since: November 2002, appointed Chair November 2013Current term of office expires: November 2019Skills, experience and expertise: Kevin is a wine grape grower in Coomealla.Board Committee membership: Member of the Remuneration & Governance and Risk, Finance & Investment Committees.

JUSTIN KASSULKE Curlwaa Representative DirectorDirector since: November 2009, appointed Deputy Chair April 2018Current term of office expires: November 2019Skills, experience and expertise: Justin is a citrus and wine grape grower in Curlwaa.Board Committee membership: Chair of the Infrastructure & Service Committee

MATTHEW COTTRELL Buronga Representative DirectorDirector since: November 2012Current term of office expires: November 2018Skills, experience and expertise: Matthew is a citrus, wine and table grape grower in Buronga and has been a Director of Sunraysia Citrus Growers Incorporated since 2007, and a grower delegate to Australian Citrus Propagation Incorporated (AusCitrus). Board Committee membership: Member of the Audit, Risk, Finance & Investment and Remuneration & Governance Committees

MICHAEL MOBILIO Coomealla Representative DirectorDirector since: November 2016Current term of office expires: November 2018Skills, experience and expertise: Michael farms stone fruit and table grapes in Coomealla, having gained practical experience through involvement in his family’s horticultural properties. Michael has particular experience in horticultural, hydroponic and viticultural properties benefitted by water entitlements, valuing significant agribusiness assets throughout Australia and internationally. Michael is an Associate Director at CBRE Agribusiness in Melbourne and has over 10 years’ experience in Australian agribusiness.Board Committee membership: Chair of the Audit, Risk, Finance & Investment Committee and member of the Infrastructure & Service Committee

ALLISON MCTAGGART Non-Member DirectorDirector since: October 2010Current term of office expires: November 2019.Skills, experience and expertise: Allison is principal consultant of Allison McTaggart and Associates, offering human resources and business consultancy. Her consultancy work includes strategic planning, governance, recruitment, training, corporate communications, and workplace health and safety. Allison is a Director of the Mallee Catchment Management Authority and, a family owned earthmoving business. Allison was a Director of Mallee Sustainable Farming up until 30 June 2018 and chaired the Murray Primary Health Network North West Community Consultative Committee over the past two years. Allison is a fellow of the Australian Institute of Company Directors, and member of the Australian Human Resource Institute, Governance Institute of Australia, and Institute of Community Directors Australia.Board Committee membership: Chair of the Remuneration & Governance Committee and member of the Charges Review Project Special Purpose Committee.

TIM VINES Curlwaa Representative DirectorDirector since: November 2014Current term of office expires: November 2018Skills, experience and expertise: Tim is a wine grape and citrus grower in Curlwaa. Tim is also the Area Sales Manager/Technical Services for Netafim Australia.Board Committee membership: Member of the Infrastructure & Service Committee.

BRETT PEKIN Non-Member DirectorDirector since: October 2010 and appointed Deputy Chair November 2013Current term of office expires: Concluded on 06 April 2018Skills, experience and expertise: Brett runs his own consultancy business BLP Agribusiness Solutions, whilst also owning and operating a dry land farm near Swan Hill, and is a Graduate of the Australian Institute of Company Directors.Board Committee membership up to 06 April 2018: Chair of the Audit, Risk, Finance & Investment Committee and member of the Charges Review Project Special Purpose Committee.

BAPPSCI(PROP)(RMIT), AAPI


MEETINGS OF DIRECTORSEach Director attended the following meetings of the Board and Committees of the Board during the financial year ended 30 June 2018:

The Charges Review Project Special Purpose Committee was formed by the Board specifically for the purpose of reviewing the company charges structure and options for reform. The membership of the Committee comprises Non-Member Directors only due to the conflict of interest confronted by Member Directors in considering such broad-scale reform.

DIRECTOR’S INTERESTSThe relevant interests of the directors in the share capital, water entitlements, and delivery entitlements of the company, as at 30 June 2018, are as follows:

DIRECTORS’ REPORT

Director BoardAudit, Risk, Finance

& Investment Committee

Infrastructure & Service Committee

Remuneration & Governance

Committee

Charges Review Project Special

Purpose CommitteeA B A B A B A B A B

Matthew Cottrell 10 7 2 0 - - 3 2 - -Justin Kassulke 10 9 - - 2 2 - - - -Allison McTaggart 10 10 - - - - 3 3 4 4Michael Mobilio 10 6 2 2 2 2 - - - -Brett Pekin 8 7 2 2 - - - - 3 3Tim Vines 10 8 - - 2 1 - - - -Kevin Watson 10 10 - - - - 3 3 - -A - Meetings eligible to attend as a Member B - Meetings attended as a Member

Current Directors Shareholding Water Entitlements Delivery EntitlementsMatthew Cottrell 319 319 319Justin Kassulke 323 74 368Allison McTaggart - - -Michael Mobilio 452 417.6 803Tim Vines 310 260 310Kevin Watson 723 623 623

Former Directors Shareholding Water Entitlements Delivery EntitlementsBrett Pekin - - -

A Director’s interest represents those held directly and indirectly, including where a Director is an authorised representative of a corporate entity. Non-shareholder directors Allison McTaggart & Brett Pekin (concluded 06 April 2018) hold no company shares, water entitlements or delivery entitlements.

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COMPANY SECRETARIESOur Company Secretaries as at 30 June 2018 are as follows:

Judith Damiani was appointed Chief Executive Officer in January 2018 and a Company Secretary in February 2018. Judith has over 20 years of local, national and international agribusiness executive experience with her last role as CEO of Mildura-based Citrus Australia Ltd. Judith is also a Director of Mildura Regional Development and a member of its Audit and Governance Committees. Judith holds a Bachelor of Science and a Bachelor of Business and is a member of the Australian Institute of Company Directors.

Narelle Heard was appointed Finance Manager in February 2016 and a Company Secretary in September 2016. Narelle’s accounting experience has encompassed both focus on profitability in the private sector to bringing in a balanced budget in the public arena, and has therefore involved all financial, compliance and management functions. Narelle has worked across many industries including agribusiness, manufacturing, mining and served in various management positions. Narelle is a Certified Practising Accountant with a Bachelor of Commerce in Accounting and Finance.

OFFICERSThe person who was an officer of the company during the financial year to 30 June 2018 whose role involves making decisions affecting the whole or a substantial part of the company was Mr. Anthony Couroupis from 01 July 2017 to 08 January 2018 and Ms Judith Damiani from 08 January 2018.

DIVIDENDSThe Company is a not-for-profit entity and no operating surplus may be paid or transferred by way of a distribution to the members.

ENVIRONMENTAL REGULATIONThe company is committed to ensuring that the water supply and drainage disposal activities undertaken are sustainable. The environmental monitoring program has as its key component, the gathering of information to ensure compliance with the company’s licences governing the supply and disposal of water.

EVENTS SUBSEQUENT TO REPORTING DATE No events have arisen in the interval between the end of the year and the date of this report. No item, transaction or event of a material and unusual nature is likely, in the opinion of the directors of the company, to affect significantly the operations of the company, the results of those operations, or the state of affairs of the company, in future financial years.

LIKELY DEVELOPMENTS It is not foreseen that the company will undertake any change in its general direction during the coming financial year.

OPTIONS No options over unissued shares or interests in the company were granted during or since the end of the financial year and there were no options outstanding at the end of the financial year.

No director has received, or become entitled to receive during or since the financial year, an interest because of a contract made by the company or a related entity with the director, a firm of which the director is a member, or an entity in which the director has a substantial financial interest.

PROCEEDINGS ON BEHALF OF THE COMPANYNo person has applied for leave of Court to bring proceedings on behalf of the company or 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 any part of those proceedings.

The company was not a party to any such proceedings during the year.

INDEMNIFICATION AND INSURANCE OF OFFICERSDuring or since the end of the financial year, the Company has given indemnity, or entered an agreement to indemnify, or paid or agreed to pay insurance premiums.

During the year, the Company has paid premiums in respect of an insurance contract to indemnify officers against liabilities that may arise from their position as officers of the Company. Officers indemnified include the Company Secretaries, all Directors and all executive officers participating in the management of the Company.

Further disclosure required under Section 300(9) of the Corporations Act 2001 (Cth) is prohibited under the terms of the contract.

AUDITOR’S INDEPENDENCE DECLARATIONA copy of the Auditor’s Declaration under section 307C in relation to the audit for the financial year is provided with this report.

This report is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors.


Kevin Watson Justin KassulkeChair Deputy Chair


Note 2018 2017$ $

Revenue 2 6,349,896 7,647,282Depreciation expense 7(a) (1,055,564) (1,031,152)Employee benefits expense (988,661) (896,468)Utility expense (829,412) (737,395)Repairs & maintenance expense (425,287) (474,705)Government charges (510,644) (414,924)Finance costs (144,329) (156,252)Loss on disposal of property, plant & equipment (26,470) (133,821)Other expenses from operations (692,441) (665,575)Total expenses (4,672,808) (4,510,292)

Surplus for the year 1,677,088 3,136,990

Other comprehensive incomeItems that will be reclassified subsequently to profit or loss when specific conditions are met:Fair value gains/(losses) on available-for-sale financial assets 587,930 845,459Items that have been reclassified to profit or loss:Reclassification of fair value gains/(losses) on available-for-sale financial assets to profit or loss (599,911) (150,912)

Total other comprehensive income for the year (11,981) 694,547

Total comprehensive income for the year 1,665,107 3,831,537

FINANCIAL STATEMENTS STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2018

The accompanying notes form part of these financial statements

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FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018

Note 2018 2017$ $

CURRENT ASSETSCash and cash equivalents 3 8,254,445 8,209,661Receivables 4 1,571,402 1,498,090Other assets 5 343,489 328,350TOTAL CURRENT ASSETS 10,169,336 10,036,101

NON-CURRENT ASSETSFinancial assets 6 23,236,202 21,720,834Property, plant and equipment 7 27,187,148 27,814,759Intangible assets 8 575,900 575,900TOTAL NON-CURRENT ASSETS 50,999,250 50,111,493

TOTAL ASSETS 61,168,586 60,147,594

CURRENT LIABILITIESTrade and other payables 9 369,163 821,664Borrowings 10 203,435 191,275Provisions 11 75,262 82,742TOTAL CURRENT LIABILITIES 647,860 1,095,681

NON-CURRENT LIABILITIESBorrowings 10 1,836,065 2,039,500Provisions 11 23,592 16,451TOTAL NON-CURRENT LIABILITIES 1,859,657 2,055,951

TOTAL LIABILITIES 2,507,517 3,151,632

NET ASSETS 58,661,069 56,995,962

EQUITYContributed equity 12 39,095,400 39,095,400Reserves 13 2,127,347 2,139,328Accumulated surplus 14 17,438,322 15,761,234TOTAL EQUITY 58,661,069 56,995,962



Note 2018 2017$ $

Total equity at the beginning of the financial year 56,995,962 53,164,425Surplus for the year 1,677,088 3,136,990Other comprehensive income (11,981) 694,547Total equity at the end of the financial year 58,661,069 56,995,962

FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018


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Note 2018 2017$ $

CASH FLOW FROM OPERATING ACTIVITIESReceipts from operations 4,344,831 6,031,038Payments for operations (3,912,506) (2,884,300)Dividends received 1,039,489 534,421Interest received 329,251 309,120Borrowing costs (144,329) (156,252)Net cash provided by operating activities 15 1,656,736 3,834,027

CASH FLOW FROM INVESTING ACTIVITIESProceeds from sale of available-for-sale investments 8,766,672 7,765,498Payments for available-for-sale investments (9,732,926) (8,369,865)Proceeds from sale of property, plant and equipment 13,521 -Payments for property, plant and equipment (467,944) (1,206,737)Net cash used in investing activities (1,420,677) (1,811,104)

CASH FLOW FROM FINANCING ACTIVITIESRepayment of state government loans (191,275) (179,842)Net cash used in financing activities (191,275) (179,842)

Net increase in cash held 44,784 1,843,081Cash and cash equivalents at beginning of financial year 8,209,661 6,366,580Cash and cash equivalents at end of financial year 3 8,254,445 8,209,661

FINANCIAL STATEMENTS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2018



Note 1 – Summary of Significant Accounting PoliciesThe financial statements were authorised for issue by the Directors as at the date of the Directors’ Declaration.

a) Basis of preparation of the financial statements Western Murray Irrigation Limited applies Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards. The financial statements are general-purpose financial statements that have been prepared in accordance with Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Corporations Act 2001 (Cth). The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

b) Revenue Revenue is measured at the fair value of consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and amounts collected on behalf of third parties. Revenue for the major business activities is as follows:i. Supply of water charges

Revenue from the supply of water and drainage services comprise both access and usage-based charges which are billed GST-free to all customers. Revenue from fixed water charges is recognised on a pro-rata basis throughout the year. Fixed water charges includes asset replacement fund contributions which are separately disclosed. Water usage charges by measure are recognised as revenue when the water is provided.

ii. Termination Charges Termination charges are levied at the time Western Murray Irrigation Limited receives written Notice of Termination. This charge is calculated in accordance with ACCC water charge rules.

iii. Contract Services Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

iv. Interest Interest revenue is recognised when it becomes receivable on a proportional basis taking into account the interest rates applicable to the financial assets.

v. DividendsDividend revenue is recognised when the right to receive a dividend has been established.

c) Income Tax The entity is exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (Cth) on the basis that it is a public authority.

d) Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short term borrowings in current liabilities in the Statement of Financial Position.

e) Trade and Other Receivables Trade receivables are recognised at their fair value. Water charges are billed on a quarterly basis and are due within 28 days. Interest is charged on overdue amounts at the rate of 7.5% (2017: 7.5%) per annum. As receivables are short term in nature the invoice amount is not materially different to amortised cost. Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised when some doubt as to collection exists. Chapter 7, Part 4, clauses 354 to 362 of the Water Management Act 2000 (NSW) (‘the Act’) provides that a rate or charge imposed on the owner of any land by an irrigation corporation is a charge on the land to which it relates, thereby securing the debts. Chapter 4, Part 1, Division 6, paragraph 136 of the Act further provides that on a change of ownership of land, the new landholder is liable to the irrigation corporation for the amount of any charges levied by the irrigation corporation in relation to the land and unpaid by the previous landholder as if the new landholder had entered into a contract with the irrigation corporation for the supply of service or services to which the unpaid services relate.

f) Financial Instruments Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are recognised immediately as expenses in profit or loss.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

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Classification and Subsequent Measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss.

i. Available-for-sale investments Available-for-sale investments are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with any re-measurements, other than impairment losses or foreign exchange gains or losses, recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are classified as non-current assets when they are not expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as current assets.

ii. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

iii. Financial liabilities Non derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised.

Fair Value “Fair Value” is the price the Company would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability). In the absence of such a market, market information is extracted from the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).

Impairment of Financial Assets At the end of each reporting period, the company assesses whether there is objective evidence that a financial asset has been impaired. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (continued)


When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

Derecognition Financial assets are derecognised when the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised when the related obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability, which is extinguished or transferred to another party, and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

g) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.

PropertyFreehold land and buildings are measured at cost.

Plant, Equipment and Water Distribution WorksPlant, equipment and water distribution works are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant, equipment and water distribution works is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(i) for details of impairment).

DepreciationThe depreciable amount of all fixed assets, including buildings but excluding freehold land, is depreciated on a straight-line basis over the asset’s useful life to the Company commencing from the time the asset is held ready for use.

The depreciation rates used for each class of assets are:

Class of non-current asset Rate/s BasisBuildings 4 – 10% Straight line

Plant and equipment 6 – 20% Straight lineMotor vehicles 20% Straight line

Office equipment 10 – 50% Straight lineWater distribution works 1 – 10% Straight line

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Purchases of assets for less than $1,000 are fully depreciated in the year they are acquired.

Gains and losses are determined by comparing proceeds with the carrying amount. These gains or losses are included in the Statement of Profit or Loss and Other Comprehensive Income in the period in which they arise.

h) Construction in ProgressCosts associated with construction works in progress are maintained in the Construction in Progress account until such time as the works have been completed and the assets are identifiable.

i) Impairment of Non-Financial AssetsAt the end of each reporting period, the Company assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where the future economic benefits of the assets are not primarily dependent upon the asset’s ability to generate net cash inflows and when the entity would if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

j) IntangiblesWater EntitlementsAfter initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment costs. Water entitlements have an indefinite useful life, and are thus not subject to amortisation, but are tested for impairment by comparing their recoverable amount with their carrying amount.

k) Trade and Other PayablesThese amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.


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l) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST.

m) Borrowings Non-interest bearing (NSW State Government) loans are measured at amortised cost being the present value of the annual loan payments based on market interest rates at the time of commencement of the loan. Loan payments are allocated between the reduction in the loan liability and interest expense. There is no actual interest payable and the annual repayments remain the same for the life of the loan.

n) Employee BenefitsShort-term Employee BenefitsProvision is made for the Company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages and salaries. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The Company’s obligations for short-term employee benefits such as wages and salaries are recognised as part of current trade and other payables in the statement of financial position.

Other Long-term Employee BenefitsThe company classifies employees’ long service leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the company’s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and discounted corporate bonds that have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods in which the changes occur.

The company’s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where the company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities.

Contributions are made by the Company to an employee superannuation fund and charged as expenses when incurred. The Company has no legal obligation to provide benefits to employees on retirement.

o) Comparative FiguresWhere required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

p) Critical Accounting Estimates and JudgmentsThe Directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the entity.

Account balances that are subject to estimates and judgments are:

• Doubtful debts;

• Depreciation; and

• Employee entitlements.

q) New and Amended Accounting StandardsThe Company has assessed all new and amended accounting standards issued and effective for financial reporting periods beginning on or after 1 January 2017, and determine there to be no effect on the current or prior period financial statements.



Note 2018 2017$ $

Note 2 – RevenueOperating and non-operating activitiesWater charges 3,214,203 3,233,271Interest – non asset replacement fund 79,313 94,607Temporary water trade 50,642 16,755Other revenue 193,592 132,180

3,537,750 3,476,813Investing ActivitiesTermination fees 248,284 1,757,454Interest – asset replacement fund 236,917 217,241Dividends 1,173,804 985,073Asset replacement fund contributions 574,970 595,306Gain on sale of available for sale investments 578,171 615,395

2,812,146 4,170,469

Total Revenue 6,349,896 7,647,282

Note 3 – Cash and Cash EquivalentsCash on hand 700 500Operating accounts 568,607 329,638Investment accounts 6,645,498 7,003,574Asset replacement fund cash management account 506,596 555,950General reserve account cash management account 533,044 319,999

8,254,445 8,209,661

Note 4 – ReceivablesCurrentWater debtors 1,066,157 1,105,738Provision for doubtful debts (13,590) (11,672)

1,052,567 1,094,066Accrued income 517,434 396,140Sundry debtors 1,401 7,884

1,571,402 1,498,090

Note 5 – Other AssetsCurrentWater distribution supplies 297,543 275,666Provision for obsolescence (61,462) (55,363)

236,081 220,303Prepayments 107,408 108,047

343,489 328,350


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Note 2018 2017$ $

Note 6 – Financial AssetsNon-currentAvailable-for-sale financial assets 23,236,202 21,720,834

Note 7 – Property, Plant & EquipmentBuildingsAt cost 711,250 711,250Less accumulated depreciation (668,293) (654,745)

42,957 56,505

LandAt cost 441,567 441,567

Total Land and Buildings 484,524 498,072

Plant and EquipmentAt cost 627,461 446,018Less accumulated depreciation (387,816) (367,250)

239,645 78,768

Water Distribution WorksAt cost 46,329,625 46,034,521Less accumulated depreciation (20,069,909) (19,403,775)

26,259,716 26,630,746

Motor VehiclesAt cost 239,584 258,114Less accumulated depreciation (236,521) (219,776)

3,063 38,338

Office EquipmentAt cost 298,321 296,087Less accumulated depreciation (273,506) (260,403)

24,815 35,684

Construction in ProgressAt cost 175,385 533,151

Total Plant and Equipment 26,702,624 27,316,687

Total Property, Plant and Equipment 27,187,148 27,814,759




Note 7 – Property, Plant & Equipment (continued)a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Note Buildings Land Plant and Equipment Motor Vehicles Office EquipmentWater Distribution

WorksConstruction in

Progress Total

$ $ $ $ $ $ $ $2018Balance at 01/07/17 56,505 441,567 78,768 38,338 35,684 26,630,746 533,151 27,814,759Additions - - 57,653 - 2,235 20,800 387,256 467,944Disposals - - - (13,521) - (26,470) - (39,991)Transfers - - 124,930 - - 620,092 (745,022) -Depreciation expense (13,548) - (21,706) (21,754) (13,104) (985,452) - (1,055,564)Carrying amount at 30/06/18 42,957 441,567 239,645 3,063 24,815 26,259,716 175,385 27,187,148

2017Balance at 01/07/16 71,145 441,567 83,028 46,207 33,896 27,036,564 60,588 27,772,995Additions - - 4,120 18,530 11,766 - 1,172,321 1,206,737Disposals - - - - - (133,821) - (133,821)Transfers - - 8,003 - 7,729 684,026 (699,758) -Depreciation expense (14,640) - (16,383) (26,399) (17,707) (956,023) - (1,031,152)Carrying amount at 30/06/17 56,505 441,567 78,768 38,338 35,684 26,630,746 533,151 27,814,759

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Note 7 – Property, Plant & Equipment (continued)a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Note Buildings Land Plant and Equipment Motor Vehicles Office EquipmentWater Distribution

WorksConstruction in

Progress Total

$ $ $ $ $ $ $ $2018Balance at 01/07/17 56,505 441,567 78,768 38,338 35,684 26,630,746 533,151 27,814,759Additions - - 57,653 - 2,235 20,800 387,256 467,944Disposals - - - (13,521) - (26,470) - (39,991)Transfers - - 124,930 - - 620,092 (745,022) -Depreciation expense (13,548) - (21,706) (21,754) (13,104) (985,452) - (1,055,564)Carrying amount at 30/06/18 42,957 441,567 239,645 3,063 24,815 26,259,716 175,385 27,187,148

2017Balance at 01/07/16 71,145 441,567 83,028 46,207 33,896 27,036,564 60,588 27,772,995Additions - - 4,120 18,530 11,766 - 1,172,321 1,206,737Disposals - - - - - (133,821) - (133,821)Transfers - - 8,003 - 7,729 684,026 (699,758) -Depreciation expense (14,640) - (16,383) (26,399) (17,707) (956,023) - (1,031,152)Carrying amount at 30/06/17 56,505 441,567 78,768 38,338 35,684 26,630,746 533,151 27,814,759


Note 2018 2017$ $

Note 8 – Intangible AssetsWater entitlements 575,900 575,900

Note 9 – Trade and Other PayablesCurrentTrade creditors and accruals 369,163 821,664

Note 10 – Borrowings CurrentUnsecured liabilitiesBorrowings 203,435 191,275Non-currentUnsecured liabilitiesBorrowings 1,836,065 2,039,500Total borrowings 2,039,500 2,230,775

Funds borrowed are in relation to the NSW State Government loan for the Coomealla Rehabilitation Joint Venture Project. There is no security provided in relation to these borrowings.

Note 11 – Employee BenefitsCurrentEmployee benefits 75,262 82,742Non-currentEmployee benefits 23,592 16,451Aggregate employee benefits liability 98,854 99,193

Note 12 – Contributed EquityIssued and paid up capital9,756 (2017: 9,830) Class A shares 12(a) 11,516,811 11,516,8114,083 (2017: 4,083) Class B shares 12(b) 2,032,810 2,032,81022,791 (2017: 23,455) Class C shares 12(c) 25,545,779 25,545,779

39,095,400 39,095,400(a) Class A sharesAt the beginning of the reporting period 11,516,811 11,516,811At reporting date 11,516,811 11,516,811

(b) Class B sharesAt the beginning of the reporting period 2,032,810 2,032,810At reporting date 2,032,810 2,032,810

(c) Class C sharesAt the beginning of the reporting period 25,545,779 25,545,779At reporting date 25,545,779 25,545,779

Shares in Western Murray Irrigation Limited are issued to landholders within the Buronga, Coomealla and Curlwaa Irrigation Areas.


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Note 2018 2017$ $

Note 13 – ReservesIntangible asset deemed cost reserve 13(a) 575,900 575,900Financial assets reserve 13(b) 1,551,447 1,563,428

2,127,347 2,139,328

a) The intangible asset deemed cost reserve records initial recognition of the water entitlements disclosed in Note 8. There have been no movements recorded to this reserve account during the year.

b) The financial assets reserve records revaluation increments and decrements (that do not represent impairment write-downs) that relate the financial assets that are classified as available-for-sale in Note 6.

Movements during the financial year:Opening balance 1,563,428 868,881Fair value remeasurement gains 587,930 845,459Reclassification to profit and loss (599,911) (150,912)Closing balance 1,551,447 1,563,428

Note 14 – Accumulated SurplusAccumulated surplus at the beginning of the financial year 15,761,234 12,624,244Net surplus attributable to members of the entity 1,677,088 3,136,990Accumulated surplus at the end of the financial year 17,438,322 15,761,234

Note 15 – Cash Flow InformationReconciliation of cash flow from operations with surplus from operations after income tax

Surplus from operations after income tax 1,677,088 3,136,990

Non-cash flows in surplus from operations:Depreciation 1,055,564 1,031,152(Decrease)/increase in provision for obsolescence 6,099 (6,037)(Decrease)/increase in provision for doubtful debts 1,918 (388)Net deficit on disposal of property, plant and equipment 26,470 133,821Net (surplus) on disposal of investments (578,171) (615,395)Adjustment to financial asset cost base 17,076 (19,668)

Changes in assets and liabilities:(Increase) in receivables and accrued income (75,230) (137,640)(Increase) in water distribution supplies (21,877) (15,058)Decrease in prepayments 639 8,198Increase/(decrease) in creditors and accruals (452,501) 311,018Increase/(decrease) in employee benefits (339) 7,034Cash flows from operations 1,656,736 3,834,027



Note 2018 2017$ $

Note 16 – Financial Risk Management The Company’s investment activities expose it to a variety of financial risks: market risk (including fair value, interest risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The overall risk management program is to use an independent financial advisor, currently JBWere (JBW) and follow the investment guidelines for a low risk investment portfolio.

The Company’s financial instruments consist mainly of deposits with banks, local money market instruments, listed shares, short-term investments, accounts receivable and payable and borrowings.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Financial assetsCash and cash equivalents 3 8,254,445 8,209,661Trade receivables 4 1,571,402 1,498,090Available-for-sale financial assets 6 23,236,202 21,720,834Total financial assets 33,062,049 31,428,585

Financial liabilitiesFinancial liabilities at amortised cost:Trade and other payables 9 369,163 821,664Borrowings 10 2,039,500 2,230,775Total financial liabilities 2,408,663 3,052,439

a) Net Fair Values The Company’s available-for-sale financial assets are measured at fair value on a recurring basis after their initial recognition. The net fair values for available-for-sale financial assets have been valued at the quoted market bid price at balance date adjusted for transaction costs expected to be incurred.

The Company does not subsequently measure any liabilities at fair value on a recurring basis and has no assets or liabilities that are measured at fair value on a non-recurring basis.

There has been no change in valuation techniques used to calculate the fair values disclosed in the financial statements.


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2018 2017$ $

Note 17 – Related Party Transactionsa) Key Management Personnel

Key management are those persons having authority and responsibility for planning, directing and controlling the activities of the Company either directly or indirectly. The key management personnel of the Company comprise the Board of Directors and Chief Executive Officer.

b) Key Management Personnel RemunerationKey management personnel remuneration 148,464 112,522

Board of Directors remuneration 103,129 97,585

c) The relevant interests of the Key Management Personnel of the Company are: Total Qty. Total Qty.Total number of shares 2,127 2,153Total number of water entitlements 1,694 1,864Total number of delivery entitlements 2,423 2,593

d) Other transactionsDuring the year the Company raised fees and charges to Directors or their related entities on commercial terms and conditions no more favourable than those which it is reasonable to expect would have been adopted if dealing with them at arm’s length in the same circumstances. The value of transactions totalled $192,064 (2017: $160,884).

Aggregate amounts receivable from Directors or their related entities as at balance date:Water accounts receivable 52,244 48,512

Note 18 – Remuneration of AuditorsAudit services 28,850 28,000

Note 19 – Contingent LiabilitiesNo contingent liabilities are known to exist at the time of signing these statements (2017: Nil).

Note 20 – Commitments Capital expenditure commitments contracted for:Curlwaa PS Switchboard Replacement - 70,275

- 70,275

Note 21 – Subsequent EventsThe Directors are not aware of any significant events since the end of the reporting period.



Directors’ DeclarationThe Directors of the Company declare that:

1. The financial statements and notes, as set out on pages 18 to 33 are in accordance with the Corporations Act 2001 (Cth) and:

a) Comply with Australian Accounting Standards – Reduced Disclosure Requirements; and

b) Give a true and fair view of the Company’s financial position as at 30 June 2018 and performance for the financial year ended on that date of the Company.

2. In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

The Declaration is made in accordance with a resolution of the Board of Directors.


Kevin WatsonChair

Justin KassulkeDeputy Chair


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AUDITOR’S INDEPENDENCE DECLARATION

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF WESTERN MURRAY IRRIGATION LIMITED I declare that, to the best of my knowledge and belief during the year ended 30 June 2018 there have been:

— no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

— no contraventions of any applicable code of professional conduct in relation to the audit. William Buck ABN 38 280 203 274 G.W. Martinella Partner Adelaide, 11th October 2018


INDEPENDENT AUDITOR’S REPORT

Report on the Audit of the Financial Report Opinion We have audited the financial report of Western Murray Irrigation Ltd. (the Company), which comprises the statement of financial position as at 30 June 2018, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, and the directors’ declaration. In our opinion, the accompanying financial report of the Company, is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Company’s financial position as at 30 June 2018 and of its financial performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information The directors are responsible for the other information. The other information comprises the information in the Company’s annual report for the year ended 30 June 2018, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

Western Murray Irrigation Ltd Independent auditor’s report to members

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In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

— Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

— Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our



auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

— Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

— Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Company audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. William Buck ABN 38 280 203 274 G.W. Martinella Partner Adelaide, 11th October 2018

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STATEMENT OF COMPREHENSIVE INCOME – IRRIGATION AREA SUMMARY FOR THE YEAR ENDED 30 JUNE 2018

Buronga Coomealla Curlwaa Total$ $ $ $

RevenueOperating ActivitiesWater RevenueAccess Fee for Delivery Entitlement 280,294 814,088 313,796 1,408,178Casual Users Fee 70,475 130,241 46,979 247,695Fixed & Variable Government Charges 45,766 325,449 137,299 508,514Infrastructure Loan Repayment 63,180 - - 63,180Joint Venture Repayment - 243,718 - 243,718Land & Water Management Plan Charge 6,217 - - 6,217Membership Levies 858 6,099 2,573 9,530Stock & Garden and Commercial & Industrial and Other Charges 12,606 90,048 56,286 158,940

Water Usage Above Access Fee and Water Above Allocation 82,018 456,224 29,989 568,231

Total Water Revenue 561,414 2,065,867 586,922 3,214,203

Non-Operating ActivitiesGross Distribution of Managed Funds – General Reserves - 144,820 60,751 205,571

Interest – Non Asset Replacement Fund 1,185 80,861 32,493 114,539Profit on Sale of Assets 308 2,002 770 3,080Sales – Water Allocation - 1,198 49,444 50,642Transfers – Land/Share/Water/Delivery 3,183 30,207 17,727 51,117Sundry Income 16,146 97,598 25,651 139,395Total Non-Operating Activities Revenue 20,822 356,686 186,836 564,344

Total Operating and Non-Operating Revenue 582,236 2,422,553 773,758 3,778,547

Expenses from Operating ActivitiesConsulting & Advisory 28,999 154,591 49,966 233,556Contract Labour & Services 6,983 18,574 9,407 34,964Depreciation 125,453 661,060 269,051 1,055,564Employee Related Costs 108,050 615,753 264,857 988,660Electricity 191,144 551,023 69,306 811,473Government Charges 45,958 326,812 137,874 510,644Motor Vehicles 2,846 20,336 8,539 31,721Insurance 9,268 65,903 27,803 102,974Interest 35,230 141,818 - 177,048Loss on Sale of Assets - - 26,470 26,470Provisions – Doubtful Debts & Obsolescence 10,230 (3,739) 1,525 8,016Repairs & Maintenance 99,950 167,440 151,038 418,428Other Operating Expenses 32,051 138,245 62,058 232,354Total Operating Activities Expense 696,162 2,857,816 1,077,894 4,631,872

Profit / (Loss) from Ordinary Activities (113,926) (435,263) (304,136) (853,325)

UNAUDITED FINANCIAL STATEMENTS



Investment RevenueAsset Replacement Fund Contribution 79,354 400,649 94,967 574,970Gross Distribution of Managed Funds – Asset Replacement Fund - 706,641 261,591 968,232

Interest – Asset Replacement Fund - 175,398 61,519 236,917Profit on Sale of Shares – Asset Replacement Fund - 422,064 156,107 578,171Termination Fees - 115,406 132,878 248,284Total Investment Revenue 79,354 1,820,158 707,062 2,606,574

Investment ExpensesAsset Replacement Fund Management - 43,123 15,968 59,091Other Portfolio Expenses - 12,467 4,610 17,077Total Investment Expense - 55,590 20,578 76,168

Profit / (Loss) from Investment Activities 79,354 1,764,568 686,484 2,530,406

Total Net Profit / (Loss) Before Income Tax Expense (34,572) 1,329,305 382,348 1,677,081

Income Tax Expense - Continuing Activities - - - -

Total Net Profit / (Loss) After Income Tax Expense (34,572) 1,329,305 382,348 1,677,081

Total Changes in Equity (34,572) 1,329,305 382,348 1,677,081

Accumulated Profit at beginning of financial year 744,979 12,102,564 2,913,695 15,761,238

Accumulated Profit at end of financial year 710,407 13,431,869 3,296,043 17,438,319

Note: The State Government Loan for the Coomealla Joint Venture rehabilitation project is a 30 year non-interest bearing loan. In order to comply with Accounting Standard AASB 139 the annual loan repayment of $333,093 is split between interest and principal.

UNAUDITED FINANCIAL STATEMENTS STATEMENT OF COMPREHENSIVE INCOME – IRRIGATION AREA SUMMARY FOR THE YEAR ENDED 30 JUNE 2018 (continued)

Note: This statement is not subject to audit

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UNAUDITED FINANCIAL STATEMENTS STATEMENT OF COMPREHENSIVE INCOME – IRRIGATION AREA SUMMARY RECONCILIATION FOR THE YEAR ENDED 30 JUNE 2018Buronga has a long-term internal Company loan payable to Coomealla and Curlwaa for the upgrade of its infrastructure. Interest as determined by the Board of Directors is charged on these liabilities. The loans do not meet the financial reporting definitions of assets and liabilities for the Company and are not shown in the Audited section of the Annual Report. Below is a reconciliation of the Audited Statement of Comprehensive Income with the Unaudited Irrigation Area Summary Statement of Comprehensive Income showing the variances. The reconciliation provides transparent reporting of the loan balances. Overall, there is no effect to Net Assets.


Revenue Audited Balance 661,590 4,217,721 1,470,585 6,349,896Add Interest – Buronga Expansion & Overdraft - 24,994 10,236 35,230Rounding - (4) (1) (5)Total Revenue 661,590 4,242,711 1,480,820 6,385,121

ExpensesAudited Balance 660,932 2,913,404 1,098,472 4,672,808Add Loan – Buronga Expansion & Overdraft 35,230 - - 35,230Rounding - 2 - 2Total Expenses 696,162 2,913,406 1,098,472 4,708,040

Net Profit / (Loss)Audited Balance 657 1,304,318 372,113 1,677,088Add Interest – Buronga Expansion & Overdraft - 24,994 10,236 35,230Less Loan – Buronga Expansion & Overdraft (35,230) - - (35,230)Rounding 1 (7) (1) (7)Unaudited Balance – Net Profit / (Loss) (34,572) 1,329,305 382,348 1,677,081




Current Assets Cash & Cash Equivalents - 6,344,357 2,535,531 8,879,888Accounts Receivable 188,310 746,742 118,915 1,053,967Buronga Loan Receivable - 79,711 34,162 113,873Water Distribution Supplies 57,648 139,327 39,106 236,081Accrued Income & Interest - 383,055 134,379 517,434Other Assets & Prepayments 9,667 68,741 29,000 107,408Total Current Assets 255,625 7,761,933 2,891,093 10,908,651

Non-Current Assets Water Entitlement - 14,300 561,600 575,900Land 13,199 168,121 260,247 441,567Water Distribution Works 3,842,753 16,943,079 5,473,884 26,259,716Construction - Work in Progress 1,933 113,516 59,936 175,385Buildings 4,298 27,918 10,741 42,957Plant and Equipment 13,102 90,982 135,561 239,645Office Equipment 2,482 16,130 6,203 24,815Motor Vehicles 307 1,991 765 3,063Buronga Loan Receivable - 432,510 185,361 617,871Other Financial Assets - 16,873,749 6,362,453 23,236,202Total Non-Current Assets 3,878,074 34,682,296 13,056,751 51,617,121

Total Assets 4,133,699 42,444,229 15,947,844 62,525,772

Current LiabilitiesOverdraft 625,442 - - 625,442Accounts Payable & Accruals 24,398 204,085 140,680 369,163Loan – Buronga Expansion 113,873 - - 113,873Loan – State Government - 203,435 - 203,435Payroll Provisions 6,774 48,167 20,321 75,262Total Current Liabilities 770,487 455,687 161,001 1,387,175

Non-Current LiabilitiesPayroll Provisions 2,123 15,099 6,370 23,592Loan – Buronga Expansion 617,871 - - 617,871Loan – State Government - 1,836,065 - 1,836,065Total Non-Current Liabilities 619,994 1,851,164 6,370 2,477,528

Total Liabilities 1,390,481 2,306,851 167,371 3,864,703

Net Assets 2,743,218 40,137,378 15,780,473 58,661,069

Shareholder EquityShareholder Equity 2,032,810 25,545,779 11,516,811 39,095,400Asset Revaluation Reserve - 14,300 561,600 575,900Share Valuation Reserve - 1,145,427 406,020 1,551,447Accumulated Surplus 710,408 13,431,872 3,296,042 17,438,322

Total Shareholder Equity 2,743,218 40,137,378 15,780,473 58,661,069

UNAUDITED FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION – IRRIGATION AREA SUMMARY FOR THE YEAR ENDED 30 JUNE 2018


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UNAUDITED FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION – IRRIGATION AREA SUMMARY RECONCILIATION FOR THE YEAR ENDED 30 JUNE 2018Buronga has a long-term internal Company loan payable to Coomealla and Curlwaa for the upgrade of its infrastructure. Interest as determined by the Board of Directors is charged on these liabilities. The loans do not meet the financial reporting definitions of assets and liabilities for the Company and are not shown in the Audited section of the Annual Report. Below is a reconciliation of the Audited Statement of Financial Position with the Unaudited Irrigation Area Summary Statement of Financial Position showing the variances. The reconciliation provides transparent reporting of the loan balances. Overall, there is no effect to Net Assets.


Current AssetsAudited Balance (369,816) 7,682,221 2,856,931 10,169,336Add Loan Receivable – Buronga Expansion - 79,711 34,162 113,873Add Overdraft (Shown in Current Liabilities) 625,442 - - 625,442Rounding (1) 1 - -Total Current Assets – Unaudited 255,625 7,761,933 2,891,093 10,908,651

Non-Current AssetsAudited Balance 3,878,073 34,249,785 12,871,392 50,999,250Add Loan Receivable – Buronga Expansion - 432,510 185,361 617,871Rounding 1 1 (2) -Total Non-Current Assets – Unaudited 3,878,074 34,682,296 13,056,751 51,617,121

Total AssetsAudited Balance 3,508,256 41,932,007 15,728,323 61,168,586Add Loan Receivable – Buronga Expansion - 512,221 219,523 731,744Add Overdraft (Shown in Total Liabilities) 625,442 - - 625,442Rounding 1 1 (2) -Total Assets – Unaudited 4,133,699 42,444,229 15,947,844 62,525,772

Current LiabilitiesAudited Balance 31,171 455,688 161,001 647,860Add Loan – Buronga Expansion 113,873 - - 113,873Add Overdraft 625,442 - - 625,442Rounding 1 (1) - -Total Current Liabilities – Unaudited 770,487 455,687 161,001 1,387,175

Non-Current Liabilities Audited Balance 2,123 1,851,164 6,370 1,859,657Add Loan – Buronga Expansion 617,871 - - 617,871Total Non-Current Liabilities – Unaudited 619,994 1,851,164 6,370 2,477,528

Total LiabilitiesAudited Balance 33,294 2,306,852 167,371 2,507,517Add Loan – Buronga Expansion 731,744 - - 731,744Add Overdraft 625,442 - - 625,442Rounding 1 (1) - -Total Liabilities – Unaudited 1,390,481 2,306,851 167,371 3,864,703

Net Assets – Unaudited 2,743,218 40,137,378 15,780,473 58,661,069



The Company’s Constitution requires the Board of Directors to maintain financial reserves sufficient to meet the anticipated future liabilities and expenses of the Company. This includes a provision for future capital expenditure required for the refurbishment, replacement and maintenance of the Company’s assets, and to provide for fluctuations in income generated by variations in demand for water.

The reserves of the Company are to be held in separate funds, with the purpose of each fund identified. The information provided below is sufficient to inform Shareholders of the Board’s compliance with this requirement of the Company’s Constitution.

Buronga Coomealla Curlwaa2018 2017 2018 2017 2018 2017

$ $ $ $ $ $General (625,442) (582,033) 1,415,985 1,929,639 1,261,706 1,481,945

General Other Financial Assets (Market Value) - - 2,533,342 - 1,062,023 1,122,601

Joint Venture - - 949,432 923,421 - -Asset Replacement Fund - - 3,978,939 3,325,674 1,273,826 1,131,015Total Reserves (625,442) (582,033) 8,877,698 8,861,152 3,597,555 3,735,561

An explanation of each of the reserve funds is provided below:-

General – These are the funds set aside by the Board for variations in income arising from fluctuations in seasonal water allocation and usage. This reserve ensures cash flow is adequate to meet short term financial commitments and longer term provisions. Also included are funds to be spent on any other projects or unforeseen tasks that may arise.

General Other Financial Assets (Market Value) – Some of the General reserve funds have been invested in bank shares and fixed interest deposits to earn a higher yield than term deposits.

Joint Venture – These are the funds collected by the Company over the past year to meet its obligation to the NSW State Government for the rehabilitation of the Coomealla irrigation area. This payment is made in May. Part of the termination fees from surrendered delivery entitlements goes towards future repayments of this loan.

Asset Replacement Fund – These are the funds set aside by the Board for the replacement of irrigation and drainage infrastructure as and when it falls due. The fund will provide for the replacement of assets from reserves, without the need to inequitably call on the Shareholders of the day for funding. The fund takes a long-term horizon, with many of the Company’s assets forecast to have an economic life of 50 to 100 years. Any Asset Replacement Fund monies generated by Buronga are used to repay their loan to the Coomealla and Curlwaa irrigation areas for Buronga system upgrades. The majority of termination fees paid during the year are specific to each irrigation area and are added into this fund.

UNAUDITED FINANCIAL STATEMENTS STATEMENT OF RESERVE BALANCES – IRRIGATION AREA SUMMARY AS AT 30 JUNE 2018


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Consistent with WMI’s Constitution and Operating License requirements, the company annually contributes to an area based Asset Replacement Fund. These funds provide the basis for the replacement of WMI’s current water supply and drainage infrastructure, as and when needed. To ensure the funds meet these needs, over a 50 to 100 year horizon, a conservative investment strategy has been developed and implemented over the past number of years.

This investment strategy was updated during 2015/16. The changes made to the investment strategy deliver greater diversity into the portfolio, which reduces the risk of negative returns, whilst still attaining the funds’ overall investment return objectives.

Specialist funds manager, JBWere Limited, continue to retain full control over the funds’ day-to-day transactions, provided they meet the investment strategy’s pre-determined limits.

The following asset class allocation parameters and benchmark returns form critical elements of the current investment strategy:

Class Minimum Weight Target Weight Maximum Weight 30 June 2018 WeightCash (including term deposits) 0.0% 5.0% 100% 8.22%Fixed Interest 10.0% 22.5% 50% 20.14%Australian Equities 20.0% 50.0% 100% 51.94%International Equities 0.0% 22.5% 50% 19.70%

The annual Asset Replacement Fund contributions from the Buronga irrigation area are currently being used to repay a loan from the Coomealla and Curlwaa irrigation areas, for previously completed infrastructure upgrades.

The information provided below summarises the current Asset Replacement Fund market value balances, by irrigation area.

Asset Replacement Fund Summary

Investment TypeCoomealla Curlwaa Total Weight

$ $ $Cash (including term deposits) 1,209,965 446,630 1,656,595 8.22%Fixed Interest 2,962,300 1,094,909 4,057,209 20.14%Australian Equities 7,640,753 2,824,138 10,464,891 51.94%International Equities 2,897,703 1,071,035 3,968,738 19.70%Total 14,710,721 5,436,712 20,147,433 100.00%

UNAUDITED FINANCIAL STATEMENTS STATEMENT OF ASSET REPLACEMENT FUND BALANCES – IRRIGATION AREA SUMMARY AS AT 30 JUNE 2018



Investments held by WMI, as at 30 June 2018, that form part of the Asset Replacement Fund, by asset class and irrigation area:

Cash (Including Term Deposits)

ASX Code Investment Name Coomealla Curlwaa Total Weight$ $ $

– JBWere Cash Trust 370,313 136,282 506,595 2.51%– Term Deposits 839,652 310,348 1,150,000 5.71%Total Cash (including term deposits) 1,209,965 446,630 1,656,595 8.22%

Fixed InterestASX Code Investment Name Coomealla Curlwaa Total Weight

$ $ $AAI1140A AAI Limited FRN 3M 76,599 28,312 104,911 0.52%AMP1227A AMP LTD FRN 3M BBSW 144,283 53,329 197,612 0.98%AYUHN AUST’N Unity LTD Simple Bond 108,808 40,217 149,025 0.74%CBA CBA FRN 3M BBSW 151,498 55,996 207,494 1.03%CGF1142A Challenger Life Co. LTD BBSW 258,475 95,536 354,011 1.76%CWNHB Crown Resorts LTD Hybrid 3-BBSW 111,217 41,108 152,325 0.76%GNW0725A Gemworth Fin Mort FRN 3MBBSW 114,308 42,250 156,558 0.78%NABPE NAB CAP Note 3-BBWS 297,310 109,890 407,200 2.02%SKI Spark Infrastructure Group-Loan Note 46,377 17,141 63,518 0.31%SUN1042A AAI LTD FRN 3M BBSW 117,302 43,357 160,659 0.80%SUNPD Suncorp Subordinated CAP Note 221,296 81,794 303,090 1.50%WBC0326A Westpac FRN 152,822 56,486 209,308 1.04%WBCHB Westpac Subordinated Notes 51,269 18,948 70,217 0.35%ELT0019AU Pimco Global Credit Fund 318,546 117,739 436,285 2.16%SSB0014AU Legg Mason Brandywine Global 195,305 72,188 267,493 1.33%GSF0008AU Payden Global Income Opportunities 251,359 92,906 344,265 1.71%HOW0052AU Kapstream Absolute Return Income 345,526 127,712 473,238 2.35%Total Fixed Interest 2,962,300 1,094,909 4,057,209 20.14%

UNAUDITED FINANCIAL STATEMENTS STATEMENT OF ASSET REPLACEMENT FUND BALANCES – IRRIGATION AREA SUMMARY AS AT 30 JUNE 2018 (continued)


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Australian EquitiesASX Code Investment Name Coomealla Curlwaa Total Weight

$ $ $AGL AGL Energy Limited 128,106 47,350 175,456 0.87%ALX Atlas Arteria Stabled Securities 165,640 61,223 226,863 1.13%AMC Amcor Limited 183,490 67,821 251,311 1.25%ANZ ANZ Limited 423,843 156,659 580,502 2.88%BFL Bennelong Ex-20 Australian Equities 697,312 257,737 955,049 4.74%BHP BHP Billiton Limited 618,846 228,735 847,581 4.21%BLD Boral Limited 250,365 92,539 342,904 1.70%CBA Commonwealth Bank Of Australia 418,615 154,726 573,341 2.84%CIP CI Australian Equities Fund 741,246 273,976 1,015,222 5.04%CTX Caltex Australia Limited 249,084 92,065 341,149 1.69%LNK Link Administration Holdings LTD 105,116 38,852 143,968 0.71%MFG Magellan Financial Group Ltd 120,956 44,707 165,663 0.82%MQG Macquarie Group Limited 373,943 138,215 512,158 2.54%NAB NAB Limited 345,363 127,651 473,014 2.35%ORA Orora Limited 198,225 73,267 271,492 1.35%PDL Pendal Group Limited FPO 153,938 56,898 210,836 1.05%PMV Premier Investments Limited 234,045 86,506 320,551 1.59%RIO Rio Tinto Limited 265,682 98,200 363,882 1.81%SHL Sonic Healthcare Limited 127,001 46,941 173,942 0.86%SKI Spark Infrastructure Group 116,298 42,987 159,285 0.79%SUN Suncorp Group Limited 199,502 73,739 273,241 1.36%SYD Sydney Airport 269,333 99,550 368,883 1.83%TCL Transurban Group 277,100 102,420 379,520 1.88%WBC Westpac Banking Corporation 406,144 150,117 556,261 2.76%WES Wesfarmers Limited 284,927 105,313 390,240 1.94%WPL Woodside Petroleum Limited 286,633 105,944 392,577 1.95%Total Australian Equities 7,640,753 2,824,138 10,464,891 51.94%

International Equities ASX Code Investment Name Coomealla Curlwaa Total Weight

$ $ $IHOO iShares Global 100 292,109 107,968 400,077 1.99%IJH iShares S&P Mid-Cap ETF 170,271 62,935 233,206 1.16%IVV iShares S&P 500 312,148 115,374 427,522 2.12%MGG Magellan Global Trust 426,008 157,459 583,467 2.90%APL Antipodes Global Investment Co Ltd FPO 235,033 86,872 321,905 1.60%APLO Antipodes Global Investment Co Ltd Option Expiring 14,939 5,521 20,460 0.10%FSF Generation Wholesale Global Share 439,983 162,624 602,607 2.99%MAQ Macquarie IFP Global Franchise Fund 456,389 168,689 625,078 3.10%PLA0004 Platinum Asia Fund 178,203 65,867 244,070 1.21%-ZUR Zurich Investments Global Growth 372,620 137,726 510,346 2.53%Total International Equities 2,897,703 1,071,035 3,968,738 19.70%

Portfolio Total 14,710,721 5,436,712 20,147,433 100.00%

UNAUDITED FINANCIAL STATEMENTS STATEMENT OF ASSET REPLACEMENT FUND BALANCES – IRRIGATION AREA SUMMARY AS AT 30 JUNE 2018 (continued)


Directors: Kevin Watson (Chair)Justin Kassulke (Deputy Chair)Matthew CottrellAllison McTaggartMichael MobilioTim VinesBrett Pekin (to 6 April 2018)David Walker (from 1 August 2018)

General Manager: Anthony Couroupis (to 8 January 2018)

CEO: Judith Damiani (from 8 January 2018)

Company Secretaries: Narelle HeardAnthony Couroupis (to 9 February 2018)Judith Damiani (from 9 February 2018)

Auditor: William Buck ADELAIDE SA 5000

Banker: National Australia Bank MILDURA VIC 3500

Solicitor: Addisons SYDNEY NSW 2000

2018 AGM: WMI 24th Annual General MeetingTuesday 27 November 2018 at 8.00pmCoomealla Memorial Sporting ClubSilver City Highway, Dareton NSW 2717

WESTERN MURRAY IRRIGATION LTD (WMI) A company limited by shares, proudly grower owned.

Registered office: 5 Tapio Street, DARETON NSW 2717 Telephone: 03 5027 4953Postal: PO Box 346, DARETON NSW 2717Website: www.westernmurray.com.auEmail: [email protected] ABN: 93 067 197 853

2018 ANNUAL REPORTW e s t e r n M u r r a y I r r i g a t i o n L t d

2018 annual report - western murray irrigation...2019/01/01 · 2018 annual report | 3 dear wmi...

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