Note 37. Deed of cross guarantee
The controlled entities referred to in note 36 and the parent entity Wattyl
Limited, are parties to a deed of cross guarantee which has been
lodged with and approved by the Australian Securities and Investments Commission.
Under the deed of cross guarantee each of the
companies referred to in note 36 and annotated (1) and (3) guarantees the debts
of the other named companies. By entering into this
deed, the wholly-owned entities have been relieved from the requirement to
prepare a financial report and Directors’ Report under Class
Order 98/1418 issued by the Australian Securities and Investments Commission.
The above companies represent a Closed Group for the purposes of the Class
Order. The consolidated income statement and balance
sheet of entities which are members of the closed group are as follows:
2007 2006
$’000 $’000
Consolidated income statement
Revenue from continuing operations 376,076 372,320
Dividends Received 4,489 16,807
380,565 389,127
Expenses classified by nature:
Changes in inventories of finished goods and work in progress (4,573) 7,080
Raw materials and consumables used (146,148) (160,111)
Employee benefits expense (102,915) (111,189)
Depreciation and amortisation expense (8,052) (7,225)
Finance costs (5,252) (3,835)
Other expenses (88,416) (97,964)
(355,356) (373,244)
Profit before income tax expense 25,209 15,883
Income tax (expense) credit (6,905) 1,467
Net Profit for the year 18,304 17,350
Retained profits at the beginning of the financial year 8,026 437
Total available for appropriation 26,330 17,787
Adjustment on adoption of AASB 132 and AASB 139 – 746
Actuarial gain on defined benefit plan 1,366 2,505
Income tax on items taken directly to equity (410) (979)
956 2,272
Dividends provided for or paid (43,564) (12,033)
Retained profits at the end of the financial year (16,278) 8,026
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